July 25, 2024 - Monthly Treasurer’s Investment Report for June 2024INVESTMENT REPORT
City of Cupertino | As of June 30, 2024
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:
For questions about your account, please call (800) 317-4747,
or contact clientservice@chandlerasset.com
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.
TABLE OF CONTENTS
City of Cupertino | As of June 30, 2024
SECTION 1 | ECONOMIC UPDATE
SECTION 2 | ACCOUNT PROFILE
SECTION 3 | PORTFOLIO HOLDINGS
SECTION 4 | TRANSACTIONS
1
SECTION 1 | ECONOMIC UPDATE
2
Economic Update
Recent economic da ta suggests positive but slower growth this year fueled by consumer spending.While the consumer has been resilient,
growing credit card debt, higher delinquencies, and a moderating labor market pose potential headwinds to future economic growth.
Inflationary trends are subsiding, but core levels remain above the Fed’s target.Given the cumulative effects of restrictive monetary policy
and tighter financial conditions, we believe the economy will gradually soften and the Fed will loosen monetary policy in 2024.
As expected at the June meeting,the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a
target range of 5.25-5.50%,emphasizing the need to see sustained evidence of easing inflation before considering any rate cuts. The
FOMC's latest projections now suggest only one interest rate cut in 2024,with four more cuts expected in 2025 and a slightly higher long-
term neutral rate.Additionally,the Fed continues to reduce its holdings of U.S.Treasury securities and agency mortgage-backed securities
as per its predefined schedule of $25 billion and $35 billion per month.
The US T reasury yield curve shifted lower in June as economic data moderated. The 2-year Treasury yield fell 12 basis points to 4.76%,the
5-year Treasury dropped 13 basis points to 4.38%,and the 10-year Treasury yield declined 10 basis points to 4.40%.The inversion between
the 2-year Treasury yield and 10-year Treasury yield remained relatively stable at -36 basis points at June month-end versus -37 basis
points at May month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -106 basis points. The
inversion between 3-month and 10-year Treasuries widened to -96 basis points in June from -91 basis points in May.
3
Employment
-400
-200
0
200
400
600
800
1,000
MO
M
C
h
a
n
g
e
I
n
T
h
o
u
s
a
n
d
s
(
0
0
0
'
s
)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Ra
t
e
(
%
)
The U.S.economy added 206,000 jobs in June,remaining ahead of consensus expectations of 190,000 jobs.The gains were broad based,
with government,health care,and social assistance posting the largest gains.The three-month moving average and six-month moving
average payrolls have weakened from the first quarter to 177,000 and 222,000 respectively.The unemployment rate edged up to 4.1%in
June, and the labor participation rate inched up to 62.6%,remaining below the pre-pandemic level of 63.3%.The U-6 underemployment
rate,which includes those who are marginally attached to the labor force and employed part time for economic reasons held steady at
7.4%.Average hourly earnings rose 3.9%year-over-year in June,down from 4.1%year-over-year in May.The labor markets continue to
show signs of cooling in line with the Federal Reserve’s view that there has been “substantial”progress towards better balance in the
labor market between demand and supply for workers.
Source: US Department of Labor Source: US Department of Labor
4
Job Openings & Labor Turnover Survey
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In
T
h
o
u
s
a
n
d
s
(
0
0
0
'
s
)
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS)increased to 8.140 million job openings in May from a
downwardly revised 7.919 million in April.Job openings still represent a healthy ratio of around 1.2 jobs for each unemployed individual.
While the current level of job openings remains elevated from a historical perspective, the trend is decelerating.
Source: US Department of Labor
5
Inflation
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YO
Y
(
%
)
C
h
a
n
g
e
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
Fed Target
YO
Y
(
%
)
C
h
a
n
g
e
In June, the Consumer Price Index (CPI)declined 0.1%month-over-month and rose 3.0%year-over-year,reflecting broad-based cost
reductions. The month-over-month drop was the first deflationary data point since the pandemic. The Core CPI,which excludes volatile
food and energy components,was up just 0.1%month-over-month and 3.3%year-over-year in June,down from 3.4%in May and lower
than expected.The Personal Consumption Expenditures (PCE)Index decelerated in May as expected.The headline PCE deflator was
unchanged in May from April versus up 0.3%in the prior month.Year-over-year,the PCE deflator rose 2.6%.The Core PCE deflator (the
Fed’s preferred gauge)increased 0.1%in May from the prior month versus up 0.3%in April.The Core PCE deflator also rose 2.6%year-
over-year,still above the Fed’s 2%inflation target.Much of the lingering inflation has been driven by shelter costs and demand for
services.
Source: US Department of Labor Source: US Department of Commerce
6
Consumer
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Retail Sales YOY % Change
YO
Y
(
%
)
C
h
a
n
g
e
May Retail Sales increased below expectations to +0.1%after a downwardly revised -0.2%,pointing to a fatigued consumer.On a year-
over-year basis, Retail Sales growth further slowed to +2.3%in May.Nonstore retailers were a bright spot in May,up 0.8%following a
1.8%decline in April.The Conference Board’s Consumer Confidence Index fell to 100.4 in June from 101.3 in May.While the present
situation component rose marginally,consumers are less optimistic about future expectations for business conditions and potential
income increases.While the consumer has been resilient,consumption has begun to moderate in the face of higher interest rates,rising
credit card balances, and growing delinquencies.
0
20
40
60
80
100
120
140
160
In
d
e
x
L
e
v
e
l
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board
All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)
7
Leading Indicators of Economic Activity
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
Leading Economic Indicators (LEI)
Recession
YO
Y
(%
)
C
h
a
n
g
e
-1.00
-0.75
-0.50
-0.25
0.00
0.25
0.50
0.75
1.00
Chicago Fed National Activity Index (CFNAI)
Recession
3
M
o
n
t
h
A
v
e
r
a
g
e
The Conference Board’s Leading Economic Index (LEI)declined for the third consecutive month to -0.5%in May following a -0.6%decline
in April.The index declined 5.3%year-over-year.The primary drivers for the negative print were a decline in new orders,weak consumer
sentiment about future business conditions, and lower building permits. The Chicago Fed National Activity Index (CFNAI) increased to 0.18
in May from -0.26 in April,surpassing consensus expectations.However,the three-month moving average fell to -0.09 in May from -0.05
in April, indicating below-trend growth expectations for the economy.
Source: The Conference Board Source: Federal Reserve Bank of Chicago
8
Housing
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In
T
h
o
u
s
a
n
d
s
o
f
U
n
i
t
s
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
May Housing Starts declined 5.5%month-over-month from April to 1.352 million units. This equates to -19.3%less starts compared to
May 2023.Single family starts were 5.2%lower month-over-month due to higher mortgage interest rates,lack of existing unit supply and
home affordability. Multi-family home starts declined 10.3%month-over-month. The Freddie Mac average rate for a 30-year fixed
mortgage edged down to 6.92%in June from 7.06%in May.According to the Case-Shiller 20-City Home Price Index, housing prices rose a
higher-than-expected 7.2% year-over-year in April versus March's upwardly revised 7.5% increase. Tight inventories and higher mortgage
rates continue to impact affordability.
Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
S&P/Case -Shiller 20 City Composite Home Price Index
Recession
YO
Y
(
%
)
C
h
a
n
g
e
9
Survey Based Measures
40
45
50
55
60
65
70
Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services
EXPANDING
CONTRACTING
The Institute for Supply Management (ISM)Manufacturing index edged down to 48.5 in June from 48.7 in May.While new orders picked
up,prices paid for materials fell the most in over a year.The ISM Services Index returned to contraction declining to 48.8 in June,from
53.8 in the previous month. Although the level of the decline was a surprise,the trend in the Services PMI,which applies to a larger share
of US economic output, has been steadily decreasing.
Source: Institute for Supply Management
10
Gross Domestic Product (GDP)
Components of GDP 6/23 9/23 12/23 3/24
0.6% 2.1% 2.2% 1.0%
0.9% 1.7% 0.2% 0.8%
0.0% 0.0% 0.3% -0.7%
0.1% 0.5% 0.2% 0.0%
0.5% 0.5% 0.6% 0.3%
2.1% 4.9% 3.4% 1.4%
State and Local (Consumption and Gross
Investment)
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total -40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce
The third and final estimate of first quarter GDP came in as expected with growth up 1.4%,a small upward revision from 1.3%in the
second estimate.Notably,the personal consumption expenditures component was revised down substantially to +1.5%in the final
estimate from +2.0%in the second estimate.Weaker growth in consumer spending was offset by upward revisions in other major
categories,particularly gross fixed investment. The consensus projection calls for 2.0%growth in the second quarter and 2.3%growth for
the full year 2024.
11
Federal Reserve
Source: Federal Reserve Source: Bloomberg
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In
$
m
i
l
l
i
o
n
s
As expected at the June meeting, the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a
target range of 5.25-5.50%, emphasizing the need to see sustained evidence of easing inflation before considering any rate cuts. The
FOMC's latest projections now suggest only one interest rate cut in 2024, with four more cuts expected in 2025 and a slightly higher long-
term neutral rate. The Fed’s inflation projections ticked up marginally, while unemployment and GDP growth forecasts remained steady.
Additionally, the Fed continues to reduce its holdings of U.S. Treasury securities and agency mortgage-backed securities as per its
predefined schedule of $25 billion and $35 billion per month. Since the Fed began its Quantitative Tightening campaign in June 2022,
securities holdings have declined by approximately $1.7T to approximately $7.3T.
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Effective Federal Funds Rate
Recession
Yi
e
l
d
(
%
)
12
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
Jun-24
Mar-24
Jun-23
Yi
e
l
d
(
%
)
At the end of June, the 2-year Treasury yield was 15 basis points lower,and the 10-Year Treasury yield was 56 basis points higher,year-
over-year.The inversion between the 2-year Treasury yield and 10-year Treasury yield remained relatively stable at -36 basis points at
June month-end versus -37 basis points at May month-end. The inversion has occurred since July 2022 and remains historically long.The
average historical spread (since 2003)is about +130 basis points. The inversion between 3-month and 10-year Treasuries widened to -96
basis points in June from -91 basis points in May.
13
SECTION 2 | ACCOUNT PROFILE
14
OBJECTIVES
City of Cupertino | As of June 30, 2024
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.
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or
above the return on the benchmark index.
Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed incomes securities consistent with the
investment policy and California Government Code.
15
STATEMENT OF COMPLIANCE
City of Cupertino | Account #10659 | As of June 30, 2024
Rules Name Limit Actual Compliance
Status Notes
AGENCY MORTGAGE SECURITIES (CMOS)
Max % (MV)100.0 3.5 Compliant
Max % Issuer (MV; Agencies & Agency CMOs)25.0 7.4 Compliant
Max Maturity (Years)5.0 3.2 Compliant
ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS)20.0 10.9 Compliant
Max % Issuer (MV)5.0 1.7 Compliant
Max Maturity (Years)5 4 Compliant
Min Rating (AA- by 1)0.0 0.0 Compliant
BANKERS' ACCEPTANCES
Max % (MV)40.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Days)180 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1)0.0 0.0 Compliant
CERTIFICATE OF DEPOSIT PLACEMENT SERVICE (CDARS)
Max % (MV)30.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5.0 0.0 Compliant
COLLATERALIZED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV; FDIC & Collateralized CD)30.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5.0 0.0 Compliant
COMMERCIAL PAPER
Max % (MV)25.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Days)270 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1)0.0 0.0 Compliant
CORPORATE MEDIUM TERM NOTES
Max % (MV)30.0 26.3 Compliant
16
STATEMENT OF COMPLIANCE
City of Cupertino | Account #10659 | As of June 30, 2024
Rules Name Limit Actual Compliance
Status Notes
Max % Issuer (MV)5.0 1.5 Compliant
Max Maturity (Years)5 3 Compliant
Min Rating (A- by 1)0.0 0.0 Compliant
FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE CD/
TD)
Max % (MV; FDIC & Collateralized CD)30.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5 0.0 Compliant
FEDERAL AGENCIES
Max % (MV)100.0 15.3 Compliant
Max % Issuer (MV; Agencies & Agency CMOs)25.0 7.4 Compliant
Max Callables (MV)20.0 0.0 Compliant
Max Maturity (Years)5 3 Compliant
LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV)75.0 0.0 Compliant
MONEY MARKET MUTUAL FUNDS
Max % (MV)20.0 0.1 Compliant
Min Rating (AAA by 2)0.0 0.0 Compliant
MORTGAGE-BACKED SECURITIES (NON-AGENCY)
Max % (MV)20.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5.0 0.0 Compliant
Min Rating (AA- by 1)0.0 0.0 Compliant
MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max % (MV)30.0 0.5 Compliant
Max % Issuer (MV)5.0 0.5 Compliant
Max Maturity (Years)5 0.0 Compliant
Min Rating (A- by 1)0.0 0.0 Compliant
MUNICIPAL SECURITIES (CA, OTHER STATES)
Max % (MV)30.0 0.0 Compliant
17
STATEMENT OF COMPLIANCE
City of Cupertino | Account #10659 | As of June 30, 2024
Rules Name Limit Actual Compliance
Status Notes
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5 0.0 Compliant
Min Rating (A- by 1)0.0 0.0 Compliant
NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV)30.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit)0.0 0.0 Compliant
REPURCHASE AGREEMENTS
Max % (MV)10.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)1.0 0.0 Compliant
SUPRANATIONAL OBLIGATIONS
Max % (MV)30.0 4.2 Compliant
Max % Issuer (MV)10.0 1.4 Compliant
Max Maturity (Years)5 1 Compliant
Min Rating (AA- by 1)0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV)100.0 34.0 Compliant
Max Maturity (Years)5 4 Compliant
18
PORTFOLIO SUMMARY
City of Cupertino | Account #10659 | As of June 30, 2024
Portfolio Characteristics
Average Modified Duration 1.72
Average Coupon 2.52%
Average Purchase YTM 2.59%
Average Market YTM 4.75%
Average Quality AA+
Average Final Maturity 2.01
Average Life 1.87
Sector Allocation
Performance Review
Total Rate of Return 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS Since Inception
(02/01/19)
City of Cupertino 0.56%1.03%1.58%4.89%2.60%0.10%1.22%--1.49%
Benchmark Return*0.57%0.94%1.25%4.54%2.09%(0.19%)0.85%--1.29%
Account Summary
Beg. Values as of
04/01/2024
End Values as of
06/30/2024
Market Value 154,139,738.35 164,177,564.58
Accrued Interest 634,868.01 789,612.72
Total Market Value 154,774,606.36 164,967,177.31
Income Earned 231,522.12 968,852.89
Cont/WD 0.00 8,639,529.99
Par 159,493,886.88 168,885,052.00
Book Value 159,262,127.89 168,646,769.08
Cost Value 159,177,151.83 168,445,525.33
Maturity Distribution
Top Issuers
United States 34.03%
FNMA 7.39%
FHLMC 7.03%
Farm Credit System 3.17%
American Express Credit Master Trust 1.74%
John Deere Owner Trust 1.54%
Toyota Motor Corporation 1.51%
International Finance Corporation 1.45%
Credit Quality
*Periods over 1 year are annualized.
Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index Secondary Benchmark:
*See Footnote
19
PORTFOLIO CHARACTERISTICS
City of Cupertino | Account #10659 | As of June 30, 2024
Benchmark*6/30/2024
Portfolio
3/31/2024
Portfolio
Average Maturity (yrs)1.92 2.01 2.03
Average Modified Duration 1.81 1.72 1.87
Average Purchase Yield 2.59%2.44%
Average Market Yield 4.79%4.75%4.99%
Average Quality**AA+AA+AA+
Total Market Value 164,967,177 154,774,606
*Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch.20
SECTOR DISTRIBUTION
City of Cupertino | Account #10659 | As of June 30, 2024
Sector as a Percentage of Market Value
Sector 06/30/2024 03/31/2024
US Treasury 34.0%35.4%
Corporate 26.2%28.2%
Agency 15.3%16.6%
ABS 10.9%10.8%
Cash 5.3%-0.0%
Supras 4.2%4.5%
Agency CMBS 3.5%3.7%
Muni Bonds 0.5%0.5%
Money Mkt Fd 0.1%0.3%
21
DURATION ALLOCATION
City of Cupertino | Account #10659 | As of June 30, 2024
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
06/30/2024 6.6%4.0%20.7%24.6%34.2%8.5%1.4%0.0%0.0%
22
PORTFOLIO ALLOCATION & DURATION CHANGES
City of Cupertino | Account #10659 | As of June 30, 2024
Portfolio Allocation | 06/30/2024
Duration as a Percentage of the Benchmark
*Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index
Portfolio Allocation | 03/31/2024
23
ISSUERS
City of Cupertino | Account #10659 | As of June 30, 2024
Issuer Investment Type % Portfolio
United States US Treasury 34.03%
FNMA Agency 7.39%
FHLMC Multiple 7.03%
Cash Cash 5.34%
Farm Credit System Agency 3.17%
American Express Credit Master Trust ABS 1.74%
John Deere Owner Trust ABS 1.54%
Toyota Motor Corporation Corporate 1.51%
International Finance Corporation Supras 1.45%
Bank of America Corporation Corporate 1.44%
BNY Mellon Corp Corporate 1.42%
Inter-American Development Bank Supras 1.40%
International Bank for Recon and Dev Supras 1.38%
Caterpillar Inc.Corporate 1.27%
The Toronto-Dominion Bank Corporate 1.23%
Cisco Systems, Inc.Corporate 1.21%
Deere & Company Corporate 1.21%
Honda Auto Receivables Owner Trust ABS 1.20%
Northwestern Mutual Global Funding Corporate 1.19%
Massachusetts Mutual Life Insurance Corporate 1.17%
GM Financial Securitized Term ABS 1.16%
JPMorgan Chase & Co.Corporate 1.15%
Federal Home Loan Banks Agency 1.15%
State Street Corporation Corporate 1.07%
Amazon.com, Inc.Corporate 1.06%
Pricoa Global Funding I Corporate 1.05%
Chase Issuance Trust ABS 1.02%
Morgan Stanley Corporate 1.00%
24
ISSUERS
City of Cupertino | Account #10659 | As of June 30, 2024
Issuer Investment Type % Portfolio
New York Life Insurance Company Corporate 1.00%
Bank of America Credit Card Trust ABS 1.00%
UnitedHealth Group Incorporated Corporate 0.98%
Berkshire Hathaway Inc.Corporate 0.92%
Toyota Auto Receivables Owner Trust ABS 0.90%
The Home Depot, Inc.Corporate 0.82%
Guardian Life Global Funding Corporate 0.80%
Bank of Montreal Corporate 0.73%
Hyundai Auto Receivables Trust ABS 0.69%
MERCEDES-BENZ AUTO RECEIVABLES TRUST ABS 0.68%
Royal Bank of Canada Corporate 0.63%
Metropolitan Life Global Funding I Corporate 0.63%
BMW Vehicle Owner Trust ABS 0.62%
Mastercard Incorporated Corporate 0.58%
The Charles Schwab Corporation Corporate 0.55%
PACCAR Inc Corporate 0.53%
State of California Muni Bonds 0.46%
Met Tower Global Funding Corporate 0.43%
Northern Trust Corporation Corporate 0.40%
Hyundai Auto Lease Securitization Tr ABS 0.37%
Walmart Inc.Corporate 0.20%
Wells Fargo & Company Money Mkt Fd 0.09%
WC MMF Sweep Money Mkt Fd 0.03%
TOTAL 100.00%
25
QUALITY DISTRIBUTION
Rating 03/31/2024 06/30/2024
AAA 12.6%16.1%
AA 63.9%62.9%
A 18.7%16.6%
NR 4.8%4.4%
Rating 03/31/2024 06/30/2024
AAA 68.5%70.6%
AA 6.6%6.9%
A 18.7%17.7%
NR 6.2%4.9%
Rating 03/31/2024 06/30/2024
AAA 17.1%19.6%
AA 64.6%62.8%
A 7.0%8.1%
NR 11.3%9.5%
City of Cupertino | Account #10659 | As of June 30, 2024
S&P Rating Moody’s Rating Fitch Rating
26
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 6.6%4.0%20.7%24.6%34.2%8.5%1.4%0.0%0.0%
ICE BofA 1-3 Year US Treasury & Agency
Index
0.0%0.1%3.9%58.4%37.6%0.0%0.0%0.0%0.0%
DURATION DISTRIBUTION
City of Cupertino | Account #10659 | As of June 30, 2024
Portfolio Compared to the Benchmark
27
3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception
TOTAL RATE OF RETURN
City of Cupertino 1.03%4.89%2.60%0.10%1.22%1.49%
Benchmark 0.94%4.54%2.09%(0.19%)0.85%1.29%
*Periods over 1 year are annualized.
Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index
Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized
and unrealized gains and losses in the portfolio.
INVESTMENT PERFORMANCE
City of Cupertino | Account #10659 | As of June 30, 2024
Total Rate of Return : Inception | 02/01/2019
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
12 months 2 years 3 years 5 years 10 years Since Inception
City of Cupertino ICE BofA 1-3 Yr US Treasury & Agency Index
28
HISTORICAL AVERAGE PURCHASE YIELD
City of Cupertino | Account #10659 | As of June 30, 2024
Purchase Yield as of 06/30/24 = 2.59%
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Pe
r
c
e
n
t
(
%
)
29
SECTION 3 |PORTFOLIO HOLDINGS
30
HOLDINGS REPORT
City of Cupertino |Account #10659 |As of June 30,2024
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
%of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
44933LAC7 HART 2021-A A3 0.38 09/15/2025 16,568.46 04/20/2021 16,566.72 99.76 16,528.83 0.01%NA/AAA 1.21
0.39%16,568.11 4.84%2.80 (39.28)AAA 0.06
43815GAC3 HAROT 2021-4 A3 0.88 01/21/2026 183,804.67 11/16/2021 183,765.93 97.97 180,064.82 0.11%Aaa/NA 1.56
0.89%183,791.64 4.64%44.93 (3,726.82)AAA 0.55
47789QAC4 JDOT 2021-B A3 0.52 03/16/2026 170,551.78 07/13/2021 170,536.57 98.07 167,267.42 0.10%Aaa/NA 1.71
0.52%170,546.90 4.81%39.42 (3,279.48)AAA 0.45
89238JAC9 TAOT 2021-D A3 0.71 04/15/2026 179,012.36 11/09/2021 179,008.54 98.00 175,430.23 0.11%NA/AAA 1.79
0.71%179,011.00 4.44%56.49 (3,580.77)AAA 0.57
43815BAC4 HAROT 2022-1 A3 1.88 05/15/2026 458,202.77 02/15/2022 458,133.86 98.11 449,529.64 0.27%Aaa/AAA 1.87
1.89%458,174.65 4.63%382.85 (8,645.01)NA 0.70
44935FAD6 HART 2021-C A3 0.74 05/15/2026 502,753.72 --490,041.86 98.36 494,509.21 0.30%NA/AAA 1.87
2.17%497,649.37 4.11%165.35 (3,140.15)AAA 0.49
05602RAD3 BMWOT 2022-A A3 3.21 08/25/2026 329,775.24 05/10/2022 329,758.09 98.66 325,365.81 0.20%Aaa/AAA 2.15
3.23%329,767.16 4.97%176.43 (4,401.35)NA 0.78
47787JAC2 JDOT 2022 A3 0.36 09/15/2026 249,871.80 03/10/2022 249,816.53 98.03 244,956.50 0.15%Aaa/NA 2.21
2.34%249,846.37 5.46%257.65 (4,889.87)AAA 0.64
362554AC1 GMCAR 2021-4 A3 0.68 09/16/2026 156,543.47 10/13/2021 156,539.48 97.67 152,899.85 0.09%Aaa/AAA 2.21
0.68%156,541.93 4.17%44.35 (3,642.07)NA 0.69
448977AD0 HART 2022-A A3 2.22 10/15/2026 634,828.53 03/09/2022 634,804.09 98.19 623,322.07 0.38%NA/AAA 2.29
2.23%634,817.38 4.60%626.36 (11,495.31)AAA 0.78
380146AC4 GMCAR 2022-1 A3 1.26 11/16/2026 158,065.45 01/11/2022 158,051.72 97.78 154,563.80 0.09%NA/AAA 2.38
1.27%158,059.44 4.27%82.98 (3,495.64)AAA 0.76
362585AC5 GMCAR 2022-2 A3 3.1 02/16/2027 292,449.63 04/05/2022 292,388.51 98.42 287,829.22 0.18%Aaa/AAA 2.63
3.13%292,418.87 4.81%377.75 (4,589.65)NA 0.97
47800AAC4 JDOT 2022-B A3 3.74 02/16/2027 576,502.54 07/12/2022 576,447.48 98.59 568,373.85 0.35%Aaa/NA 2.63
3.77%576,471.90 5.33%958.28 (8,098.04)AAA 0.88
02589BAA8 AMXCA 2022-1 A 2.21 03/17/2025 1,545,000.00 03/21/2022 1,524,359.77 97.70 1,509,493.43 0.92%Aaa/NA 0.71
2.69%1,540,098.76 5.54%1,517.53 (30,605.33)AAA 0.76
44934FAD7 HALST 24B A3 5.41 05/17/2027 610,000.00 05/14/2024 609,983.04 100.22 611,328.89 0.37%NA/AAA 2.88
5.41%609,983.66 5.36%1,466.71 1,345.22 AAA 1.69
31
HOLDINGS REPORT
City of Cupertino |Account #10659 |As of June 30,2024
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
%of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
02582JJT8 AMXCA 2022-2A 05/17/2027 1,375,000.00 05/17/2022 1,374,695.85 98.21 1,350,387.50 0.82%NA/AAA 0.87
3.42%1,374,871.63 5.54%2,071.67 (24,484.13)AAA 0.92
47800BAC2 JDOT 2022-C A3 5.09 06/15/2027 1,050,000.00 10/12/2022 1,049,918.52 99.64 1,046,250.56 0.64%Aaa/NA 2.96
5.15%1,049,948.93 5.50%2,375.33 (3,698.38)AAA 1.05
89231FAD2 TAOT 2023-C A3 5.16 04/17/2028 1,300,000.00 11/21/2023 1,294,718.75 99.72 1,296,403.16 0.79%NA/AAA 3.80
5.40%1,295,442.21 5.35%2,981.33 960.95 AAA 2.18
438123AC5 HAROT 2023-4 A3 5.67 06/21/2028 805,000.00 --806,992.67 100.88 812,097.44 0.49%Aaa/NA 3.98
5.64%806,661.84 5.37%1,267.88 5,435.60 AAA 2.28
47800RAD5 JDOT 2024 A3 4.96 11/15/2028 500,000.00 03/25/2024 499,765.63 99.61 498,032.35 0.30%Aaa/NA 4.38
5.13%499,778.91 5.22%1,102.22 (1,746.56)AAA 2.07
05522RDH8 BACCT 2023-2A 4.98 11/16/2026 850,000.00 01/24/2024 858,798.83 99.93 849,376.78 0.52%Aaa/NA 2.38
4.58%857,450.63 5.08%1,881.33 (8,073.85)AAA 2.18
58769FAC9 MBART 2023-2 A3 5.95 11/15/2028 1,100,000.00 11/29/2023 1,123,289.06 101.29 1,114,240.82 0.68%NA/AAA 4.38
5.18%1,119,966.57 5.52%2,908.89 (5,725.75)AAA 2.50
437930AC4 HONDO-242-A3 5.27 11/20/2028 535,000.00 05/14/2024 534,935.00 100.27 536,444.02 0.33%NA/AAA 4.39
5.27%534,936.62 5.21%1,018.13 1,507.40 AAA 2.06
36268GAD7 GMCAR 2024-1 A3 4.85 12/18/2028 1,310,000.00 --1,307,922.66 99.39 1,302,046.99 0.79%Aaa/NA 4.47
4.97%1,308,016.27 5.13%2,647.29 (5,969.28)AAA 2.77
161571HV9 CHAIT 241 A 4.6 01/16/2029 1,690,000.00 01/24/2024 1,689,742.61 99.08 1,674,459.77 1.02%NR/AAA 4.55
4.61%1,689,764.20 5.17%3,455.11 (15,304.43)AAA 2.41
096919AD7 BMWOT 2024-A A3 5.18 02/26/2029 695,000.00 06/04/2024 694,894.43 100.10 695,686.59 0.42%Aaa/AAA 4.66
5.18%694,895.66 5.21%2,000.06 790.93 NA 2.10
05522RDJ4 BACCT 2024-1A 4.93 03/15/2029 785,000.00 06/06/2024 784,955.96 100.04 785,311.33 0.48%Aaa/AAA 4.71
4.93%784,956.42 4.99%1,935.03 354.91 NA 2.61
18,050,832.14 99.25 17,922,200.87 10.92%Aaa/AAA 3.09
Total ABS 18,058,930.42 4.15%18,070,437.01 5.19%31,844.15 (148,236.14)AAA 1.67
AGENCY
3135G0W66 FEDERAL NATIONAL MORTGAGE 1,975,000.00 --1,965,802.75 98.97 1,954,628.94 1.19%Aaa/AA+0.29
ASSOCIATION 1.625 10/15/2024 1.72%1,974,451.02 5.20%6,775.35 (19,822.08)AA+0.29
3135G0X24 FEDERAL NATIONAL MORTGAGE 1,295,000.00 --1,309,953.95 98.13 1,270,838.52 0.77%Aaa/AA+0.52
ASSOCIATION 1.625 01/07/2025 1.38%1,296,615.41 5.31%10,171.15 (25,776.89)AA+0.50
32
HOLDINGS REPORT
City of Cupertino |Account #10659 |As of June 30,2024
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
%of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137EAEP0 FEDERAL HOME LOAN MORTGAGE 2,365,000.00 02/13/2020 2,363,178.95 97.70 2,310,584.61 1.41%Aaa/AA+0.62
CORP 1.5 02/12/2025 1.52%2,364,774.49 5.34%13,697.29 (54,189.87)AA+0.60
3135G03U5 FEDERAL NATIONAL MORTGAGE 1,860,000.00 04/22/2020 1,856,168.40 96.43 1,793,520.27 1.09%Aaa/AA+0.81
ASSOCIATION 0.625 04/22/2025 0.67%1,859,380.31 5.18%2,228.13 (65,860.04)AA+0.79
3135G04Z3 FEDERAL NATIONAL MORTGAGE 2,500,000.00 --2,499,227.30 95.66 2,391,600.00 1.46%Aaa/AA+0.96
ASSOCIATION 0.5 06/17/2025 0.50%2,499,891.93 5.17%486.11 (108,291.93)AA+0.94
3137EAEU9 FEDERAL HOME LOAN MORTGAGE 1,250,000.00 07/21/2020 1,243,775.00 95.27 1,190,933.46 0.73%Aaa/AA+1.06
CORP 0.375 07/21/2025 0.48%1,248,686.06 5.01%2,083.33 (57,752.60)AA+1.03
3135G05X7 FEDERAL NATIONAL MORTGAGE 2,500,000.00 --2,487,983.75 94.81 2,370,257.95 1.44%Aaa/AA+1.15
ASSOCIATION 0.375 08/25/2025 0.47%2,497,153.36 5.07%3,281.25 (126,895.41)AA+1.12
3137EAEX3 FEDERAL HOME LOAN MORTGAGE 2,500,000.00 --2,489,362.80 94.51 2,362,797.53 1.44%Aaa/AA+1.23
CORP 0.375 09/23/2025 0.46%2,497,326.73 5.03%2,552.08 (134,529.21)AA+1.20
3135G06G3 FEDERAL NATIONAL MORTGAGE 2,500,000.00 --2,492,700.00 94.22 2,355,613.25 1.43%Aaa/AA+1.36
ASSOCIATION 0.5 11/07/2025 0.56%2,498,019.08 4.97%1,875.00 (142,405.83)AA+1.32
3130B0TY5 FEDERAL HOME LOANBANKS 4.75 1,875,000.00 04/10/2024 1,870,050.00 100.28 1,880,320.24 1.15%Aaa/AA+2.77
04/09/2027 4.85%1,870,416.83 4.64%19,791.67 9,903.40 AA+2.55
3133ERDS7 FEDERAL FARM CREDIT BANKS 2,400,000.00 06/20/2024 2,412,552.00 100.37 2,408,899.15 1.47%Aaa/AA+2.85
FUNDING CORP 4.75 05/06/2027 4.55%2,412,432.34 4.61%17,416.67 (3,533.19)AA+2.62
3133EPC60 FEDERAL FARM CREDIT BANKS 2,800,000.00 11/09/2023 2,789,612.00 100.02 2,800,481.18 1.71%Aaa/AA+3.38
FUNDING CORP 4.625 11/15/2027 4.73%2,791,240.24 4.62%16,547.22 9,240.94 AA+3.08
25,780,366.90 97.23 25,090,475.11 15.28%Aaa/AA+1.52
Total Agency 25,820,000.00 1.93%25,810,387.80 4.99%96,905.24 (719,912.69)AA+1.43
AGENCY CMBS
3137BFE98 FHMS K-041 A2 3.171 10/25/2024 1,230,680.02 07/01/2021 1,323,846.34 99.20 1,220,868.06 0.74%Aaa/AA+0.32
0.66%1,237,931.55 5.64%3,252.07 (17,063.49)AAA 0.24
3137BLMZ8 FHMS K-049 A2 3.01 07/25/2025 995,707.70 07/01/2021 1,075,053.16 97.63 972,150.95 0.59%Aaa/AA+1.07
0.87%1,015,612.23 5.40%2,497.57 (43,461.28)AAA 0.92
3137BLW95 FHMS K-050 A2 3.334 08/25/2025 950,000.00 11/16/2021 1,018,132.81 97.83 929,401.82 0.57%Aaa/AA+1.15
1.22%969,970.83 5.37%2,639.42 (40,569.02)AAA 0.97
3137BM7C4 FHMS K-051 A2 3.308 09/25/2025 440,000.00 03/15/2022 453,079.69 97.68 429,792.92 0.26%Aaa/AA+1.24
2.32%444,422.03 5.34%1,212.93 (14,629.11)AAA 1.05
33
HOLDINGS REPORT
City of Cupertino |Account #10659 |As of June 30,2024
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
%of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137BN6G4 FHMS K-053 A2 2.995 12/25/2025 570,000.00 03/15/2022 582,001.17 96.97 552,753.28 0.34%Aaa/AA+1.49
2.32%574,612.99 5.26%1,422.63 (21,859.71)AAA 1.27
3137BSP72 FHMS K-058 A2 2.653 08/25/2026 650,000.00 11/12/2021 687,451.17 95.24 619,083.79 0.38%Aaa/AA+2.15
1.36%666,589.25 4.99%1,437.04 (47,505.46)AAA 2.00
3137FBBX3 FHMS K-068 A2 3.244 08/25/2027 1,000,000.00 09/28/2022 950,664.06 95.27 952,651.00 0.58%Aaa/AA+3.15
4.36%968,489.92 4.87%2,703.33 (15,838.92)AA+2.86
6,090,228.40 97.28 5,676,701.82 3.46%Aaa/AA+1.44
Total Agency CMBS 5,836,387.72 1.77%5,877,628.80 5.29%15,164.99 (200,926.98)AAA 1.27
CASH
CCYUSD Receivable 126,812.79 --126,812.79 1.00 126,812.79 0.08%Aaa/AAA 0.00
0.00%126,812.79 0.00%0.00 0.00 AAA 0.00
CCYUSD Cash 8,639,529.99 --8,639,529.99 1.00 8,639,529.99 5.26%Aaa/AAA 0.00
0.00%8,639,529.99 0.00%0.00 0.00 AAA 0.00
8,766,342.78 1.00 8,766,342.78 5.34%Aaa/AAA 0.00
Total Cash 8,766,342.78 0.00%8,766,342.78 0.00%0.00 0.00 AAA 0.00
CORPORATE
14913Q3B3 CATERPILLAR FINANCIAL SERVICES 1,100,000.00 01/28/2020 1,111,517.00 98.81 1,086,884.69 0.66%A2/A 0.36
CORP 2.15 11/08/2024 1.93%1,100,858.49 5.55%3,481.81 (13,973.80)A+0.35
74153WCQ0 PRICOA GLOBAL FUNDING I 1.15 885,000.00 12/01/2021 884,088.45 98.03 867,593.86 0.53%Aa3/AA-0.44
12/06/2024 1.18%884,868.35 5.80%706.77 (17,274.50)AA-0.42
89114TZL9 TORONTO-DOMINION BANK 1.45 700,000.00 03/15/2022 674,737.00 97.84 684,896.11 0.42%A1/A 0.53
01/10/2025 2.78%695,266.25 5.66%4,821.25 (10,370.14)NA 0.51
89236TJT3 TOYOTA MOTOR CREDIT CORP 1.45 1,215,000.00 01/10/2022 1,213,371.90 97.92 1,189,723.21 0.72%A1/A+0.54
01/13/2025 1.50%1,214,708.84 5.44%8,221.50 (24,985.63)A+0.52
64952WEK5 NEW YORK LIFE GLOBAL FUNDING 1,680,000.00 01/11/2022 1,678,185.60 97.74 1,642,061.25 1.00%Aaa/AA+0.54
1.45 01/14/2025 1.49%1,679,673.87 5.76%11,300.33 (37,612.62)AAA 0.52
69371RR73 PACCAR FINANCIAL CORP 2.85 885,000.00 03/31/2022 884,769.90 98.01 867,382.45 0.53%A1/A+0.77
04/07/2025 2.86%884,941.22 5.52%5,885.25 (17,558.77)NA 0.74
34
HOLDINGS REPORT
City of Cupertino |Account #10659 |As of June 30,2024
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
%of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
78016EZ59 ROYAL BANK OF CANADA 3.375
04/14/2025
1,050,000.00 04/07/2022
3.39%
1,049,611.50
1,049,898.27
98.31
5.59%
1,032,257.28
7,579.69
0.63%
(17,640.99)
A1/A
AA-
0.79
0.76
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
1,369,947.80
98.31
5.48%
1,346,893.17
8,414.08
0.82%
(23,054.63)
A1/A
AA-
0.82
0.79
06367WB85 BANK OF MONTREAL 1.85
05/01/2025
1,240,000.00 07/23/2021
0.86%
1,285,656.80
1,250,101.65
97.00
5.57%
1,202,803.91
3,823.33
0.73%
(47,297.74)
A2/A-
AA-
0.84
0.81
66815L2J7 NORTHWESTERN MUTUAL GLOBAL
FUNDING 4.0 07/01/2025
1,170,000.00 06/27/2022
4.01%
1,169,602.20
1,169,867.52
98.74
5.31%
1,155,267.08
23,400.00
0.70%
(14,600.44)
Aaa/AA+
AAA
1.00
0.95
74153WCM9 PRICOA GLOBAL FUNDING I 0.8
09/01/2025
904,000.00 04/06/2022
3.23%
832,972.72
879,580.80
94.79
5.46%
856,905.37
2,410.67
0.52%
(22,675.43)
Aa3/AA-
AA-
1.17
1.13
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
1,009,152.98
98.31
5.23%
983,104.72
4,718.06
0.60%
(26,048.26)
A1/A
AA-
1.39
1.32
40139LBC6 GUARDIAN LIFE GLOBAL FUNDING
0.875 12/10/2025
1,400,000.00 --
1.12%
1,385,860.00
1,395,120.85
93.92
5.30%
1,314,877.98
714.58
0.80%
(80,242.86)
Aa1/AA+
NA
1.45
1.40
66815L2A6 NORTHWESTERN MUTUAL GLOBAL
FUNDING 0.8 01/14/2026
850,000.00 12/06/2021
1.46%
827,449.50
841,539.80
93.54
5.22%
795,127.15
3,154.44
0.48%
(46,412.65)
Aaa/AA+
AAA
1.54
1.49
06051GHY8 BANK OF AMERICA CORP 2.015
02/13/2026
600,000.00 05/24/2021
1.06%
620,988.00
603,505.72
97.71
6.10%
586,267.62
4,634.50
0.36%
(17,238.10)
A1/A-
AA-
1.62
0.60
46647PBK1 JPMORGAN CHASE &CO 2.083
04/22/2026
401,000.00 05/20/2021
1.11%
415,969.33
404,090.24
97.11
6.58%
389,395.27
1,600.96
0.24%
(14,694.97)
A1/A-
AA-
1.81
0.78
6174468Q5 MORGAN STANLEY 2.188
04/28/2026
650,000.00 05/23/2022
4.22%
615,699.50
639,701.29
97.11
6.66%
631,243.75
2,488.85
0.38%
(8,457.54)
A1/A-
A+
1.83
0.80
023135BX3 AMAZON.COM INC 1.0 05/12/2026 1,875,000.00 05/10/2021
1.09%
1,866,900.00
1,871,983.57
93.03
4.95%
1,744,357.99
2,552.08
1.06%
(127,625.58)
A1/AA
AA-
1.87
1.81
91324PEC2 UNITEDHEALTH GROUP INC 1.15
05/15/2026
1,035,000.00 --
1.37%
1,025,051.35
1,030,767.13
92.96
5.14%
962,104.51
1,520.88
0.59%
(68,662.62)
A2/A+
A
1.87
1.81
89236TJK2 TOYOTA MOTOR CREDIT CORP 1.125
06/18/2026
1,385,000.00 06/15/2021
1.13%
1,384,390.60
1,384,760.71
92.61
5.12%
1,282,614.64
562.66
0.78%
(102,146.08)
A1/A+
A+
1.97
1.90
06051GJD2 BANK OF AMERICA CORP 1.319
06/19/2026
700,000.00 07/16/2021
1.27%
701,274.00
700,314.49
95.82
6.18%
670,746.41
307.77
0.41%
(29,568.08)
A1/A-
AA-
1.97
0.94
57629WDE7 MASSMUTUAL GLOBAL FUNDING II
1.2 07/16/2026
1,000,000.00 08/19/2021
1.15%
1,002,230.00
1,000,929.17
92.24
5.25%
922,403.06
5,500.00
0.56%
(78,526.11)
Aa3/AA+
AA+
2.04
1.96
35
HOLDINGS REPORT
City of Cupertino |Account #10659 |As of June 30,2024
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
%of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
58989V2D5 MET TOWER GLOBAL FUNDING 1.25
09/14/2026
770,000.00 09/07/2021
1.27%
769,291.60
769,687.70
91.68
5.30%
705,906.12
2,860.76
0.43%
(63,781.58)
Aa3/AA-
AA-
2.21
2.12
931142ER0 WALMART INC 1.05 09/17/2026 350,000.00 09/08/2021
1.09%
349,338.50
349,707.29
92.18
4.81%
322,642.99
1,061.67
0.20%
(27,064.30)
Aa2/AA
AA
2.22
2.14
61690U7W4 MORGAN STANLEY BANK NA 5.882
10/30/2026
1,000,000.00 --
5.88%
1,000,082.50
1,000,063.72
101.23
5.31%
1,012,334.55
9,966.72
0.62%
12,270.83
Aa3/A+
AA-
2.33
2.07
59217GER6 METROPOLITAN LIFE GLOBAL
FUNDING I 1.875 01/11/2027
1,115,000.00 01/03/2022
1.90%
1,113,728.90
1,114,356.79
92.28
5.17%
1,028,867.43
9,872.40
0.63%
(85,489.36)
Aa3/AA-
AA-
2.53
2.40
17275RBQ4 CISCO SYSTEMS INC 4.8 02/26/2027 2,000,000.00 --
4.71%
2,004,911.40
2,004,407.28
99.73
4.91%
1,994,591.60
33,333.33
1.21%
(9,815.68)
A1/AA-
NA
2.66
2.43
808513BY0 CHARLES SCHWAB CORP 2.45
03/03/2027
960,000.00 03/01/2022
2.46%
959,729.90
959,853.43
93.27
5.18%
895,353.66
7,709.33
0.55%
(64,499.77)
A2/A-
A
2.67
2.52
24422EXM6 JOHN DEERE CAPITAL CORP 4.85
03/05/2027
2,000,000.00 03/11/2024
4.77%
2,004,220.00
2,003,792.95
99.63
5.00%
1,992,587.66
30,716.67
1.21%
(11,205.29)
A1/A
A+
2.68
2.45
084664CZ2 BERKSHIRE HATHAWAY FINANCE
CORP 2.3 03/15/2027
1,615,000.00 03/07/2022
2.30%
1,614,693.15
1,614,834.14
93.74
4.79%
1,513,857.28
10,937.14
0.92%
(100,976.86)
Aa2/AA
A+
2.71
2.56
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
99.88
5.04%
1,757,871.56
25,142.53
1.07%
(2,128.44)
A1/A
AA-
2.71
2.48
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
99.47
5.19%
1,332,831.90
15,941.53
0.81%
(7,168.10)
A1/A
AA-
2.76
2.52
57629W4S6 MASSMUTUAL GLOBAL FUNDING II
5.1 04/09/2027
1,000,000.00 06/20/2024
4.99%
1,002,630.00
1,002,611.93
99.97
5.11%
999,712.89
11,616.67
0.61%
(2,899.04)
Aa3/AA+
AA+
2.77
2.53
06051GHT9 BANK OF AMERICA CORP 3.559
04/23/2027
1,150,000.00 --
4.29%
1,114,222.54
1,128,660.60
96.70
5.91%
1,112,016.71
7,730.94
0.68%
(16,643.89)
A1/A-
AA-
2.81
1.71
665859AW4 NORTHERN TRUST CORP 4.0
05/10/2027
670,000.00 05/05/2022
4.03%
668,914.60
669,380.03
97.61
4.90%
654,013.91
3,796.67
0.40%
(15,366.11)
A2/A+
A+
2.86
2.65
14913UAL4 CATERPILLAR FINANCIAL SERVICES
CORP 5.0 05/14/2027
1,000,000.00 05/10/2024
5.04%
998,930.00
998,975.97
100.06
4.97%
1,000,617.18
6,527.78
0.61%
1,641.21
A2/A
A+
2.87
2.63
91324PEG3 UNITEDHEALTH GROUP INC 3.7
05/15/2027
675,000.00 05/17/2022
3.69%
675,316.70
675,179.95
96.77
4.92%
653,211.95
3,191.25
0.40%
(21,968.01)
A2/A+
A
2.87
2.67
437076DB5 HOME DEPOT INC 4.875 06/25/2027 1,350,000.00 06/17/2024
4.96%
1,346,913.30
1,346,930.21
99.80
4.95%
1,347,249.21
1,096.88
0.82%
319.00
A2/A
A
2.99
2.75
36
HOLDINGS REPORT
City of Cupertino |Account #10659 |As of June 30,2024
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
%of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
46647PEA0 JPMORGAN CHASE &CO 5.04
01/23/2028
1,500,000.00 03/11/2024
5.02%
1,500,780.00
1,500,697.97
99.46
5.61%
1,491,882.02
33,180.00
0.91%
(8,815.96)
A1/A-
AA-
3.57
2.32
57636QAW4 MASTERCARD INC 4.875 03/09/2028 945,000.00 03/06/2023
4.90%
944,083.35
944,324.18
100.53
4.71%
950,049.24
14,332.50
0.58%
5,725.06
Aa3/A+
NA
3.69
3.23
Total Corporate 44,295,000.00 3.07%
44,192,829.99
44,245,043.16
97.11
5.31%
42,980,509.31
336,814.21
26.18%
(1,264,533.85)
A1/A+
AA-
1.97
1.73
MONEY MARKET
FUND
992995944 WC MMF SWEEP 51,102.63 --
2.85%
51,102.63
51,102.63
1.00
2.85%
51,102.63
0.00
0.03%
0.00
NA/NA
NA
0.00
0.00
VP4520004 WF ADV 100%TREAS MM FD-SVC
CL #008
142,288.45 --
0.01%
142,288.45
142,288.45
1.00
0.01%
142,288.45
0.00
0.09%
0.00
Aaa/
AAAm
NA
0.00
0.00
Total Money Market
Fund 193,391.08 0.76%
193,391.08
193,391.08
1.00
0.76%
193,391.08
0.00
0.12%
0.00
Aaa/AAA
NA
0.00
0.00
MUNICIPAL BONDS
13063DRK6 CALIFORNIA STATE 2.4 10/01/2024 755,000.00 10/16/2019
1.92%
772,342.35
755,884.42
99.20
5.60%
748,922.25
4,530.00
0.46%
(6,962.17)
Aa2/AA-
AA
0.25
0.25
Total Municipal
Bonds 755,000.00 1.92%
772,342.35
755,884.42
99.20
5.60%
748,922.25
4,530.00
0.46%
(6,962.17)
Aa2/AA-
AA
0.25
0.25
SUPRANATIONAL
45950KCT5 INTERNATIONAL FINANCE CORP
0.375 07/16/2025
2,500,000.00 05/27/2021
0.66%
2,471,150.00
2,492,720.45
95.18
5.18%
2,379,418.35
4,296.88
1.45%
(113,302.10)
Aaa/AAA
NA
1.04
1.02
459058JL8 INTERNATIONAL BANK FOR
RECONSTRUCTION AND DEVELOPM
0.5 10/28/2025
2,400,000.00 --
0.60%
2,388,859.25
2,396,859.25
94.26
5.02%
2,262,175.87
2,100.00
1.38%
(134,683.38)
Aaa/AAA
NA
1.33
1.29
4581X0DV7 INTER-AMERICAN DEVELOPMENT
BANK 0.875 04/20/2026
2,460,000.00 04/13/2021
0.97%
2,448,733.20
2,455,940.00
93.15
4.88%
2,291,468.87
4,245.21
1.40%
(164,471.13)
Aaa/AAA
NA
1.80
1.75
37
HOLDINGS REPORT
City of Cupertino |Account #10659 |As of June 30,2024
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
%of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
7,308,742.45 94.21 6,933,063.09 4.22%Aaa/AAA 1.39
Total Supranational 7,360,000.00 0.74%7,345,519.71 5.03%10,642.08 (412,456.62)NA 1.35
US TREASURY
912828YY0 UNITED STATES TREASURY 1.75 2,100,000.00 03/15/2022 2,087,203.13 98.24 2,063,085.95 1.26%Aaa/AA+0.50
12/31/2024 1.97%2,097,706.34 5.36%99.86 (34,620.39)AA+0.49
912828ZC7 UNITED STATES TREASURY 1.125 1,500,000.00 03/18/2020 1,523,144.53 97.33 1,459,907.22 0.89%Aaa/AA+0.67
02/28/2025 0.81%1,503,099.60 5.24%5,640.29 (43,192.38)AA+0.65
91282CED9 UNITED STATES TREASURY 1.75 3,100,000.00 --3,057,617.20 97.58 3,025,083.32 1.84%Aaa/AA+0.71
03/15/2025 2.23%3,089,896.96 5.26%15,921.20 (64,813.64)AA+0.69
912828ZL7 UNITED STATES TREASURY 0.375 2,500,000.00 03/21/2022 2,360,839.85 96.12 2,402,954.10 1.46%Aaa/AA+0.83
04/30/2025 2.22%2,462,849.76 5.19%1,579.48 (59,895.66)AA+0.81
91282CAB7 UNITED STATES TREASURY 0.25 1,500,000.00 03/12/2021 1,469,765.63 94.96 1,424,472.66 0.87%Aaa/AA+1.08
07/31/2025 0.72%1,492,531.22 5.08%1,565.93 (68,058.56)AA+1.06
91282CAM3 UNITED STATES TREASURY 0.25 2,400,000.00 --2,366,140.63 94.29 2,262,937.49 1.38%Aaa/AA+1.25
09/30/2025 0.56%2,390,759.34 5.02%1,508.20 (127,821.85)AA+1.22
91282CAT8 UNITED STATES TREASURY 0.25 2,450,000.00 --2,422,492.19 93.98 2,302,521.49 1.40%Aaa/AA+1.34
10/31/2025 0.49%2,442,321.20 4.97%1,031.93 (139,799.71)AA+1.30
91282CAZ4 UNITED STATES TREASURY 0.375 2,250,000.00 03/26/2021 2,209,658.20 93.82 2,110,869.14 1.29%Aaa/AA+1.42
11/30/2025 0.76%2,237,781.66 4.94%714.65 (126,912.52)AA+1.38
91282CBH3 UNITED STATES TREASURY 0.375 2,500,000.00 05/27/2021 2,456,445.31 93.20 2,329,980.48 1.42%Aaa/AA+1.59
01/31/2026 0.75%2,485,243.91 4.89%3,914.84 (155,263.43)AA+1.54
91282CBW0 UNITED STATES TREASURY 0.75 2,500,000.00 05/27/2021 2,493,652.34 93.01 2,325,195.30 1.42%Aaa/AA+1.83
04/30/2026 0.80%2,497,641.69 4.78%3,158.97 (172,446.39)AA+1.78
91282CCZ2 UNITED STATES TREASURY 0.875 1,400,000.00 10/18/2021 1,379,054.68 92.04 1,288,492.18 0.78%Aaa/AA+2.25
09/30/2026 1.19%1,390,483.61 4.64%3,079.24 (101,991.43)AA+2.18
91282CDG3 UNITED STATES TREASURY 1.125 1,400,000.00 11/15/2021 1,391,468.75 92.29 1,291,992.18 0.79%Aaa/AA+2.34
10/31/2026 1.25%1,395,981.96 4.65%2,653.53 (103,989.78)AA+2.25
91282CJP7 UNITED STATES TREASURY 4.375 2,500,000.00 12/28/2023 2,525,097.66 99.43 2,485,644.53 1.51%Aaa/AA+2.46
12/15/2026 4.01%2,520,806.47 4.62%4,781.42 (35,161.95)AA+2.30
91282CKJ9 UNITED STATES TREASURY 4.5 2,300,000.00 04/17/2024 2,283,109.38 99.85 2,296,585.93 1.40%Aaa/AA+2.79
04/15/2027 4.77%2,284,253.98 4.55%21,774.59 12,331.94 AA+2.57
38
HOLDINGS REPORT
City of Cupertino |Account #10659 |As of June 30,2024
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
%of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CKR1 UNITED STATES TREASURY 4.5
05/15/2027
3,200,000.00 05/08/2024
4.65%
3,186,500.00
3,187,079.45
99.87
4.55%
3,195,750.02
18,391.30
1.95%
8,670.56
Aaa/AA+
AA+
2.87
2.65
91282CEW7 UNITED STATES TREASURY 3.25
06/30/2027
3,250,000.00 --
3.18%
3,260,312.50
3,256,020.94
96.49
4.51%
3,135,869.13
287.02
1.91%
(120,151.81)
Aaa/AA+
AA+
3.00
2.82
91282CFB2 UNITED STATES TREASURY 2.75
07/31/2027
400,000.00 08/22/2022
3.12%
393,218.75
395,768.77
94.95
4.52%
379,812.50
4,593.41
0.23%
(15,956.27)
Aaa/AA+
AA+
3.08
2.88
91282CFH9 UNITED STATES TREASURY 3.125
08/31/2027
4,500,000.00 --
3.28%
4,468,902.34
4,480,207.99
95.94
4.51%
4,317,187.50
47,002.38
2.63%
(163,020.49)
Aaa/AA+
AA+
3.17
2.94
91282CFM8 UNITED STATES TREASURY 4.125
09/30/2027
3,450,000.00 --
4.31%
3,421,152.34
3,430,958.03
98.87
4.50%
3,410,917.99
35,772.54
2.08%
(20,040.05)
Aaa/AA+
AA+
3.25
2.98
91282CFZ9 UNITED STATES TREASURY 3.875
11/30/2027
850,000.00 12/05/2022
3.81%
852,656.25
851,819.97
98.10
4.48%
833,830.08
2,789.79
0.51%
(17,989.89)
Aaa/AA+
AA+
3.42
3.15
91282CGC9 UNITED STATES TREASURY 3.875
12/31/2027
2,750,000.00 --
3.67%
2,775,107.42
2,767,846.15
98.08
4.47%
2,697,255.85
289.57
1.64%
(70,590.30)
Aaa/AA+
AA+
3.50
3.23
91282CGH8 UNITED STATES TREASURY 3.5
01/31/2028
3,000,000.00 02/07/2023
3.81%
2,957,929.69
2,969,708.45
96.85
4.46%
2,905,429.68
43,846.15
1.77%
(64,278.77)
Aaa/AA+
AA+
3.59
3.27
91282CGP0 UNITED STATES TREASURY 4.0
02/29/2028
3,700,000.00 --
4.01%
3,699,113.28
3,699,447.77
98.48
4.45%
3,643,632.79
49,467.39
2.22%
(55,814.98)
Aaa/AA+
AA+
3.67
3.33
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029
2,300,000.00 04/17/2024
4.62%
2,249,867.19
2,251,919.09
98.98
4.36%
2,276,550.79
23,848.36
1.39%
24,631.70
Aaa/AA+
AA+
4.75
4.23
Total US Treasury 57,800,000.00 2.76%
57,290,449.24
57,582,134.32
96.71
4.73%
55,865,958.28
293,712.04
34.03%
(1,716,176.04)
Aaa/AA+
AA+
2.41
2.24
Total Portfolio 168,885,052.00 2.59%
168,445,525.33
168,646,769.08
91.87
4.75%
164,177,564.58
789,612.72
100.00%
(4,469,204.49)
Aa2/AA
AA
2.01
1.72
Total Market Value +
Accrued 164,967,177.31
39
SECTION 4 |TRANSACTIONS
40
TRANSACTION LEDGER
City of Cupertino |Account #10659|04/01/2024 Through 06/30/2024|
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp
Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 04/11/2024 36268GAD7 360,000.00 GMCAR 2024-1 A3
4.85 12/18/2028
99.402 5.15%(357,848.44)(1,212.50)(359,060.94)0.00
Purchase 04/11/2024 3130B0TY5 1,875,000.00 FEDERAL HOME
LOANBANKS 4.75
04/09/2027
99.736 4.85%(1,870,050.00)0.00 (1,870,050.00)0.00
Purchase 04/18/2024 91282CKG5 2,300,000.00 UNITED STATES
TREASURY 4.125
03/31/2029
97.820 4.62%(2,249,867.19)(4,665.98)(2,254,533.17)0.00
Purchase 04/18/2024 91282CKJ9 2,300,000.00 UNITED STATES
TREASURY 4.5
04/15/2027
99.266 4.77%(2,283,109.38)(848.36)(2,283,957.74)0.00
Purchase 05/15/2024 14913UAL4 1,000,000.00 CATERPILLAR
FINANCIAL SERVICES
CORP 5.0 05/14/2027
99.893 5.04%(998,930.00)(138.89)(999,068.89)0.00
Purchase 05/15/2024 91282CKR1 3,200,000.00 UNITED STATES
TREASURY 4.5
05/15/2027
99.578 4.65%(3,186,500.00)0.00 (3,186,500.00)0.00
Purchase 05/21/2024 437930AC4 535,000.00 HONDO-242-A3 5.27
11/20/2028
99.988 5.27%(534,935.00)0.00 (534,935.00)0.00
Purchase 05/22/2024 44934FAD7 610,000.00 HALST 24B A3 5.41
05/17/2027
99.997 5.41%(609,983.04)0.00 (609,983.04)0.00
Purchase 06/11/2024 096919AD7 695,000.00 BMWOT 2024-A A3
5.18 02/26/2029
99.985 5.18%(694,894.43)0.00 (694,894.43)0.00
Purchase 06/13/2024 05522RDJ4 785,000.00 BACCT 2024-1 A 4.93
03/15/2029
99.994 4.93%(784,955.96)0.00 (784,955.96)0.00
Purchase 06/21/2024 3133ERDS7 2,400,000.00 FEDERAL FARM CREDIT
BANKSFUNDING CORP
4.75 05/06/2027
100.523 4.55%(2,412,552.00)(14,250.00)(2,426,802.00)0.00
Purchase 06/24/2024 57629W4S6 1,000,000.00 MASSMUTUAL GLOBAL
FUNDING II 5.1
04/09/2027
100.263 4.99%(1,002,630.00)(10,625.00)(1,013,255.00)0.00
41
TRANSACTION LEDGER
City of Cupertino |Account #10659|04/01/2024 Through 06/30/2024|
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp
Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Purchase 06/25/2024 437076DB5 370,000.00 HOME DEPOT INC
4.875 06/25/2027
99.669 5.00%(368,775.30)0.00 (368,775.30)0.00
Purchase 06/25/2024 437076DB5 980,000.00 HOME DEPOT INC
4.875 06/25/2027
99.810 4.94%(978,138.00)0.00 (978,138.00)0.00
Total Purchase 18,410,000.00 (18,333,168.74)(31,740.73)(18,364,909.47)0.00
TOTAL
ACQUISITIONS 18,410,000.00 (18,333,168.74)(31,740.73)(18,364,909.47)0.00
DISPOSITIONS
Call
Redemption
06/23/2024 46647PCK0 (655,000.00)JPMORGAN CHASE &
CO 0.969 06/23/2025
100.000 0.97%655,000.00 0.00 655,000.00 0.00
Total Call
Redemption (655,000.00)655,000.00 0.00 655,000.00 0.00
Sale 04/11/2024 912797GK7 (1,000,000.00)UNITED STATES
TREASURY 08/08/2024
98.275 5.40%982,750.29 0.00 982,750.29 (330.22)
Sale 04/11/2024 912797GB7 (1,000,000.00)UNITED STATES
TREASURY 07/11/2024
98.675 5.41%986,746.86 0.00 986,746.86 (314.71)
Sale 04/18/2024 3135G0V75 (1,500,000.00)FEDERAL NATIONAL
MORTGAGE
ASSOCIATION 1.75
07/02/2024
99.262 1.96%1,488,930.00 7,729.17 1,496,659.17 (10,444.79)
Sale 04/18/2024 3130A1XJ2 (1,500,000.00)FEDERAL HOME
LOANBANKS 2.875
06/14/2024
99.595 1.99%1,493,925.00 14,854.17 1,508,779.17 (8,105.04)
Sale 04/18/2024 912797GL5 (1,000,000.00)UNITED STATES
TREASURY 09/05/2024
97.992 5.45%979,923.61 0.00 979,923.61 (0.00)
Sale 05/09/2024 912828XX3 (2,000,000.00)UNITED STATES
TREASURY 2.0
06/30/2024
99.508 1.87%1,990,156.25 14,285.71 2,004,441.96 (10,390.84)
Sale 05/10/2024 06367TQW3 (600,000.00)BANK OF MONTREAL
0.625 07/09/2024
99.175 1.88%595,050.00 1,260.42 596,310.42 (3,736.07)
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TRANSACTION LEDGER
City of Cupertino |Account #10659|04/01/2024 Through 06/30/2024|
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp
Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Sale 05/14/2024 79466LAG9 (1,000,000.00)SALESFORCE INC 0.625
07/15/2024
99.167 0.91%991,670.00 2,065.97 993,735.97 (7,922.99)
Sale 05/21/2024 79466LAG9 (760,000.00)SALESFORCE INC 0.625
07/15/2024
99.247 0.90%754,277.20 1,662.50 755,939.70 (5,448.40)
Sale 06/10/2024 912828D56 (1,100,000.00)UNITED STATES
TREASURY 2.375
08/15/2024
99.469 1.73%1,094,156.25 8,325.55 1,102,481.80 (7,111.38)
Sale 06/21/2024 3130A2UW4 (2,000,000.00)FEDERAL HOME
LOANBANKS 2.875
09/13/2024
99.406 1.82%1,988,120.00 15,652.78 2,003,772.78 (16,640.92)
Sale 06/21/2024 69371RR40 (680,000.00)PACCAR FINANCIAL
CORP 0.5 08/09/2024
99.303 0.52%675,260.40 1,246.67 676,507.07 (4,723.18)
Sale 06/21/2024 912828D56 (600,000.00)UNITED STATES
TREASURY 2.375
08/15/2024
99.555 1.73%597,328.13 4,971.84 602,299.97 (3,248.06)
Sale 06/21/2024 69371RQ25 (370,000.00)PACCAR FINANCIAL
CORP 2.15 08/15/2024
99.461 2.19%368,005.70 2,784.25 370,789.95 (1,969.68)
Total Sale (15,110,000.00)14,986,299.69 74,839.03 15,061,138.72 (80,386.31)
TOTAL
DISPOSITIONS (15,765,000.00)15,641,299.69 74,839.03 15,716,138.72 (80,386.31)
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IMPORTANT DISCLOSURES
City of Cupertino |Account #10659 |As of June 30,2024
2024 Chandler Asset Management,Inc,An Independent Registered Investment Adviser.
Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”),an independent pricing source.In the event IDS does not provide a price or if the
price provided is not reflective of fair market value,Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation
policy and procedures. Our valuation procedures are also disclosed in Item 5 ofour 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 ofan 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 anyof 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 asof 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 willdecline 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 asof 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’sand Fitch respectively.
44
BENCHMARK DISCLOSURES
City of Cupertino |Account #10659 |As of June 30,2024
Benchmark Disclosure
ICE BofA 1-3 Yr US Treasury &Agency Index The ICE BofA 1-3 Year US Treasury &Agency Index tracks the performance of US dollar denominated US Treasury and
nonsubordinated US agency debt issued in the US domestic market.Qualifying securities must have an investment grade rating
(based onan average ofMoody’s,S&P and Fitch).Qualifying securities must have at least one year remaining term to final
maturity and less than three years remaining term to final maturity,at least 18 months to maturity at time of issuance,a fixed
coupon schedule,and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies.
45