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AC 10-31-2024 Agenda PacketCITY OF CUPERTINO AUDIT COMMITTEE AGENDA 10185 North Stelling Road, Quinlan Conference Room Thursday, October 31, 2024 4:00 PM Special Meeting Members of the public wishing to observe the meeting may do so in one of the following ways: 1) Attend in person at Quinlan Community Center, 10185 North Stelling Road 2) The meeting will also be streamed live on and online at https://youtube.com/@cupertinocitycommission Members of the public wishing to comment on an item on the agenda may do so in the following ways: 1) Appear in person at Quinlan Community Center. 2) E-mail comments by 2:00 p.m. on Thursday, October 31 to the legislative body at auditcommittee@cupertino.gov. These e-mail comments will also be posted to the City’s website after the meeting. Oral public comments may be made during the public comment period for each agenda item. NOTICE AND CALL FOR A SPECIAL MEETING OF THE CUPERTINO AUDIT COMMITTEE NOTICE IS HEREBY GIVEN that a special meeting of Cupertino Audit Committee is hereby called for Thursday October 31, 2024, commencing at 4:00 p.m. at the Quinlan Community Center Conference Room, 10185 North Stelling Road, Cupertino, California 95014. Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading, "Special Meeting." SPECIAL MEETING ROLL CALL ORDERS OF THE DAY APPROVAL OF MINUTES Page 1 1 Audit Committee Agenda October 31, 2024 1.Subject: Approve Minutes of Regular Meeting on July 22, 2024 Recommended Action: Approve Minutes of Regular Meeting on July 22, 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. Effective January 1, 2023, Government Code Section 65103.5 (SB 1214) limits the distribution of copyrighted material associated with the review of development projects. Members of the public wishing to view plans that cannot otherwise be distributed under SB 1214 may make an appointment with the Planning Division to view them at City Hall by sending an email to planning@cupertino .org. Plans will also be made available digitally during the hearing to consider the proposal. OLD BUSINESS NEW BUSINESS 2.Subject: INFORMATIONAL ITEM Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending September 30, 2024 Recommended Action: Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending September 30, 2024 Presenter: PARS and US Bank 4:15(15) A - OPEB Pension Section 115 Trust Performance Report for Quarter Ending September 30, 2024 3.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 4:30(10) A - Internal Audit Status Report 10-21-24 4.Subject: INFORMATIONAL ITEM Fiscal Year 2023-24 Annual Comprehensive Financial Report (ACFR) Update Page 2 2 Audit Committee Agenda October 31, 2024 Recommended Action: Receive Fiscal Year 2023-24 Annual Comprehensive Financial Report (ACFR) Update Presenter: The Pun Group 4:40(15) 5.Subject: ACTION ITEM Review and Accept the City-Wide Policy Inventory and Gap Analysis Report Recommended Action: Review and Accept the City-Wide Policy Inventory and Gap Analysis Report Presenter: Moss Adams 4:55(20) A - City-Wide Policy Inventory and Gap Analysis 6.Subject: ACTION ITEM Review and Accept the OPEB and Pension Trust Investment Policy Recommended Action: Review and Accept the OPEB and Pension Trust Investment Policies Presenter: Jonathan Orozco, Finance Manager 5:15(10) Staff Report A - OPEB Trust Investment Policy B - Pension Trust Investment Policy 7.Subject: INFORMATIONAL ITEM Receive the Treasurer's Investment Report for the Quarter Ending September 30, 2024 Recommended Action: Receive the Treasurer's Investment Report for the Quarter Ending September 30, 2024 Presenter: Jonathan Orozco, Finance Manager and Chandler 5:25(15) Staff Report A – Chandler Investment Report September 2024 B – Chandler Custodial Statement September 2024 C – PARS Pension and OPEB Account Statement September 2024 D – LAIF Account Statement September 2024 8.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 5:40(10) A - Proposed Audit Committee 2024 Schedule and Work Plan Page 3 3 Audit Committee Agenda October 31, 2024 STAFF AND COMMITTEE REPORTS 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 City Council, Commissioners or 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 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. Page 4 4 CITY OF CUPERTINO Agenda Item 24-13474 Agenda Date: 10/31/2024 Agenda #: 1. Subject:Approve Minutes of Regular Meeting on July 22, 2024 Approve Minutes of Regular Meeting on July 22, 2024 CITY OF CUPERTINO Printed on 10/30/2024Page 1 of 1 powered by Legistar™5 Page 1 City of Cupertino Audit Committee Regular Meeting DRAFT Minutes July 22, 2024 CALL TO ORDER At 4:04 p.m., Chair Schmidt called the regular meeting to order in the City of Cupertino Quinlan Conference Room, 10185 North Stelling Road. ROLL CALL Committee Members Present: Chair Eno Schmidt, Mayor Sheila Mohan, Committee member Angela Chen City Staff Present: Kristina Alfaro, Janet Liang, Jonathan Orozco, Pamela Wu Absent: Committee member Hanyan Wu, Councilmember Hung Wei Guests: Ken Pun (The Pun Group), Sophia Kuo (The Pun Group), Chelsea Ritchie (Moss Adams), Maria Stroth (Moss Adams), Colleen Rozillis (Moss Adams), Jennifer Meza (PARS), Dennis Mullins (US Bank) ORDERS OF THE DAY 1. APPROVE MINUTES OF REGULAR MEETING ON JUNE 24, 2024 Mayor Mohan motioned, Committee member Chen seconded. The motion passes with Committee member Wu and Councilmember Wei absent. POSTPONEMENTS ORAL COMMUNICATIONS OLD BUSINESS NEW BUSINESS 2. Receive the Internal Audit and Fraud, Waste, and Abuse programs update Rozillis provided an overview. Mayor Mohan asked what happens after the three reports that went to HR. Rozilis noted that it could be issues related to employee compensation, employee– manager, and employee-employee challenges. HR will determine how to respond to that. Committee member Chen asked if they see a decline in reports. Rozil lis noted that it is pretty steady. Mayor Mohan asked if most of these reports are internal or external. Rozillis noted there are instances when the public will submit reports and most complaints are from city employees. Rozilis noted that at least two of the four are internal. No public comment. 6 Page 2 3. Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending June 30, 2024 Meza and Mullins provided an overview. Mullins noted that they wanted to relook at the custom benchmark with the City. Chair Schmidt noted it would great to include in the report what would trigger investing in commodities at the city level. Mullins noted that they will try to come with recommendations to the benchmark to the October meeting. No Public Comment. 4. Receive the Treasurer's Investment Report for the Quarter Ending June 30, 2024 Orozco provided an overview. Oblites provided an overview. Mayor Mohan asked about the difference in the City’s Operating Checking account. Orozco noted that it is the same account except now it would get an earning credit and depending on the balance it would decrease the bank fees. Chair Schmidt asked if there is an amount limit on the FDIC that they will cover up to. Orozco noted that he will follow up with Wells Fargo. Chair Schmidt asked if any cities are making this type of trade-off. Oblites noted that City staff took a diversified approach which is wise as most cities leave it in LAIF because it is politically convenient. Committee member Chen asked for clarification about the liquidity ratio and if that is the base of making decisions as to how much should go into investment and how much should stay cash and cash equivalent. Orozco noted that there is a lot of factors in what we decide to hold on to as cash and cash equivalents and how much we decide to invest and is constantly discussed with Oblites. No public comment. 5. Receive the proposed Audit Committee 2024 Schedule and Workplan Orozco provided an overview. No public comment. STAFF AND COMMITTEE REPORTS COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS FUTURE AGENDA SETTING ADJOURNMENT The meeting adjourned at 5:26 p.m. Recording Secretary: Janet Liang, Management Analyst 7 CITY OF CUPERTINO Agenda Item 24-13473 Agenda Date: 10/31/2024 Agenda #: 2. Subject:INFORMATIONAL ITEM Receive OPEB &Pension Section 115 Trust Performance Report for Quarter Ending September 30, 2024 Receive OPEB &Pension Section 115 Trust Performance Report for Quarter Ending September 30, 2024 Presenter: PARS and US Bank 4:15(15) CITY OF CUPERTINO Printed on 10/30/2024Page 1 of 1 powered by Legistar™8 U.S. Bank ConfidentialU.S. Bank Confidential Investment and insurance products and services including annuities are: NOT A DEPOSIT ●NOT FDIC INSURED ●MAY LOSE VALUE ●NOT BANK GUARANTEED ●NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY PARS/CITY OF CUPERTINO 115P OPEB & PENSION ACCOUNTS September 30, 2024 Investment Review 19 U.S. Bank Confidential Your Team Ryan Maxey Vice President & Relationship Manager Institutional Trust & Custody 971.865.1407 ryan.maxey@usbank.com Dennis S. Mullins, CFA Senior Institutional Client Portfolio Manager PFM Asset Management LLC 513.304.0398 Dennis.Mullins@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 210 U.S. Bank Confidential Table of Contents Page 4 – 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 Page 21 – MARKET SUMMARY Page 30 – DISCLOSURES, DEFINITIONS, DESCRIPTIONS 311 U.S. Bank Confidential PORTFOLIO REVIEW 412 PARS/CITY OF CUPERTINO 115P -OPEB Portfolio Overview Account: XXXXXX9600 Holdings Method: Direct Report Date: 09/30/2024 © 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: 9/30/2024 Portfolio Summary Inv. Objective Balanced/Nontaxable-1 Total Portfolio Value $40,330,774 Net Realized Cap Gains YTD $556,745 Annual Income Projected $855,315 Current Yield 2.12% Number of Securities 10 Portfolio Mgr.Kenneth Donaldson, CFP®, CTFA Portfolio Asset Allocation Equity $26,384,623 65.42% Fixed Income $11,436,585 28.36% Real Assets $1,660,481 4.12% Cash $849,085 2.11% Invested Total $40,330,774 100.00% 65% 28% 4% 2% Equity Fixed Income Real Assets Cash Portfolio Model Allocation Cash Equivalents Investment Grade High Yield Reinsurance 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 Affluent Non-Taxable Strategic Balanced Affluent Non-Taxable Tactical Balanced 513 PARS/CITY OF CUPERTINO 115P -OPEB Fixed Income Overview Account: XXXXXX9600 Holdings Method: Direct Report Date: 09/30/2024 © 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: 9/30/2024 Fixed Income Summary Inv. Objective Balanced/Nontaxable-1 Total Fixed Income Value $11,436,585 Current Yield 3.89% Annual Income Projected $444,687 Number of Securities 2 Portfolio Mgr.Kenneth Donaldson, CFP®, CTFA Fixed Income Asset Allocation Investment Grade $9,480,042 82.89% High Yield $1,956,542 17.11% 83% 17% Investment Grade High Yield Fixed Income Sector Exposures Mutual Funds & ETFs $11,436,585 100.00%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 12,000,000 614 PARS/CITY OF CUPERTINO 115P -OPEB Equity Overview Account: XXXXXX9600 Holdings Method: Direct and Indirect (securities held in mutual funds & ETFs)Report Date: 09/30/2024 © 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: 9/30/2024 Equity Summary Inv. Objective Balanced/Nontaxable-1 Total Equity Value $26,384,623 Current Yield 1.22% Annual Income Projected $323,165 Number of Securities 6 Portfolio Mgr.Kenneth Donaldson, CFP®, CTFA Equity Asset Allocation Large Cap U.S.$12,066,035 45.73% Mid Cap U.S.$4,918,450 18.64% Developed Markets $4,876,776 18.48% Emerging Markets $2,480,376 9.40% Small Cap U.S.$2,042,987 7.74% 46% 19% 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) HNACXJVLIXFSMDXFSPSXFPADXFSSNX 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% Equity Global Distribution North America Asia Europe Middle East South America Africa 72.61% 13.04% 12.86% 0.80% 0.43% 0.27% Equity Country Distribution United States Japan United Kingdom Hong Kong France 71.61% 3.93% 2.83% 2.46% 2.10% 715 PARS/CITY OF CUPERTINO 115P -OPEB Common Stock Detail Account: XXXXXX9600 Holdings Method: Direct and Indirect (securities held in mutual funds & ETFs)Report Date: 09/30/2024 © 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: 9/30/2024 Top 10 Common Stock Holdings Stock Wt. (%) Full Port Wt. (%)Yield (%) YTD Return (%)* 52 Wk Return (%)* NVIDIA Corporation 1.96 1.31 0.03 145.3 179.3 Amazon.com, Inc.1.83 1.22 0.00 22.6 46.6 Microsoft Corporation 1.81 1.21 0.80 15.0 37.3 Apple Inc.1.30 0.87 0.44 21.5 36.8 Meta Platforms Inc Class A 1.27 0.85 0.34 62.2 91.3 Broadcom Inc.1.12 0.75 1.14 56.2 110.9 Alphabet Inc. Class A 1.02 0.68 0.49 19.0 27.1 JPMorgan Chase & Co.0.99 0.66 2.34 26.2 49.1 Eli Lilly and Company 0.97 0.65 0.57 52.7 66.0 Taiwan Semiconductor Manufa…0.84 0.56 1.47 63.4 86.3 Common Stock Characteristics Portfolio S&P 500 Market Cap -Wtd Avg $355.7B $999.7B Market Cap -Median $5.7B $38.1B Dividend Yield (%)1.84 1.45 P/E NTM 17.8 21.7 P/E LTM 21.0 27.2 ROE (%)20.5 29.7 1 Yr Beta vs. S&P Composite .92 1.01 Est 3-5 Yr EPS Growth (%)14.9 14.8 Hist 3 Yr EPS Growth (%)24.7 25.3 Number of Securities 4911 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 6.85 8.86 11.59 10.11 5.43 5.89 4.15 3.31 15.67 12.91 11.17 11.60 11.90 8.51 18.34 31.70 3.64 2.23 8.88 2.34 2.40 2.53 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% 90%Portfolio S&P 500 *Specific to the security -does not represent performance in the portfolio. 816 U.S. Bank Confidential Custom Benchmark ActualTargetRangeBenchmarkAsset Class 65.4%63%50%-70%MSCI AC World Free IndexEquities 28.4%29%20%-40%BBARC Global Aggregate IndexFixed Income 4.1%5%0%-15%S&P Global REIT TR USDReal Estate 0%2%0%-10%S&P GSCI Commodity IndexCommodities 2.1%1%0%-10%FTSE 3-Mo US T-Bill IndexCash CITY OF CUPERTINO OPEB 917 Selected Period Performance Period Ending: 09/30/2024PARS/CITY OF CUPERTINO OPEB AGG (****60596) Selected Period Performance Year Inception to Date to Date Market Value 1 Month 3 Months (9 Months) 1 Year 3 Years 5 Years 07/01/2010 Total Portfolio Gross of Fees 40,369,514 1.65 6.30 13.14 24.80 4.02 7.73 7.04 Total Portfolio Net of Fees 40,369,514 1.64 6.25 13.00 24.59 3.84 7.53 City of Cupertino 2.15 6.96 13.77 25.09 4.97 8.26 7.72 Total Equity 26,384,623 1.71 6.27 16.73 30.68 5.90 12.45 11.79 Domestic Equity 19,027,472 1.40 5.82 17.80 32.86 8.11 13.32 S&P 500 Index (Total Return)2.14 5.89 22.08 36.35 11.91 15.98 15.03 S&P MidCap 400 Index 1.16 6.94 13.54 26.79 7.47 11.78 12.67 S&P SmallCap 600 Index .85 10.13 9.33 25.86 3.99 10.21 12.43 Foreign Equity 7,357,152 2.50 7.44 13.94 25.01 .08 9.86 MSCI EAFE Index (Net).92 7.26 12.99 24.77 5.48 8.20 7.22 MSCI Emerging Markets Index (Net)6.68 8.72 16.86 26.05 .40 5.75 4.25 Total Fixed Income 11,471,841 1.46 5.13 5.10 12.10 -.18 -.31 1.91 BBARC US Aggregate Bond Index 1.34 5.20 4.45 11.57 -1.39 .33 2.35 BBARC Global Aggregate Index 1.70 6.98 3.60 11.99 -3.06 -.83 1.42 Total Real Assets 1,660,481 2.64 15.97 15.66 34.56 4.39 5.22 Real Estate 1,660,481 2.64 15.97 15.66 34.56 4.39 5.22 S&P Global REIT Index (Gross)3.27 16.34 13.92 31.93 3.00 3.62 8.64 S&P GSCI Index -.08 -5.26 5.23 -6.06 8.81 8.03 -.93 Total Cash Equivalents 852,568 .41 1.30 3.96 5.34 3.47 2.22 1.08 ICE BofAML US 3-Month Treasury Bill Index .43 1.37 4.03 5.46 3.49 2.32 1.18 Pending Cash 0 .00 .00 .00 .00 .00 .00 .00 1018 PARS/CITY OF CUPERTINO 115P -OPEB Portfolio Holdings Account: XXXXXX9600 Holdings Method: Direct Report Date: 09/30/2024 © 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: 9/30/2024 Symbol % of Port.Price Shares/ Units Portfolio Value Cost Basis Unrealized Gain/Loss Current Yield Projected Annual Income Total 100.0 40,330,774 32,979,741 7,351,033 2.12 855,315 Cash 2.11 849,085 849,085 0 4.82 40,888 Cash Equivalents 2.11 849,085 849,085 0 4.82 40,888 FIRST AM GOVT OB FD CL X 31846V336 2.11 1.00 849,085 849,085 849,085 0 4.82 40,888 Fixed Income 28.36 11,436,585 10,765,914 670,671 3.89 444,687 Investment Grade 23.51 9,480,042 8,717,001 763,041 3.15 298,479 Mutual Funds & ETFs 23.51 9,480,042 8,717,001 763,041 3.15 298,479 Fidelity U.S. Bond Index Fund FXNAX 23.51 10.64 890,981 9,480,042 8,717,001 763,041 3.15 298,479 High Yield 4.85 1,956,542 2,048,913 -92,371 7.47 146,208 Mutual Funds & ETFs 4.85 1,956,542 2,048,913 -92,371 7.47 146,208 Artisan High Income Fund -Institutional Sh…APHFX 4.85 9.19 212,899 1,956,542 2,048,913 -92,371 7.47 146,208 Equity 65.42 26,384,623 19,797,883 6,586,741 1.22 323,165 Large Cap U.S. Equity 29.92 12,066,035 10,167,675 1,898,360 0.47 57,113 Mutual Funds & ETFs 29.92 12,066,035 10,167,675 1,898,360 0.47 57,113 Harbor Capital Appreciation Fund -Retire…HNACX 14.93 118.92 50,623 6,020,062 4,614,964 1,405,098 0.00 0 John Hancock Fds III Disciplined Value Fu…JVLIX 14.99 25.83 234,068 6,045,973 5,552,711 493,262 0.94 57,113 Mid Cap U.S. Equity 12.20 4,918,450 1,613,156 3,305,294 0.99 48,869 Mutual Funds & ETFs 12.20 4,918,450 1,613,156 3,305,294 0.99 48,869 Fidelity Mid Cap Index Fund FSMDX 12.20 34.32 143,311 4,918,450 1,613,156 3,305,294 0.99 48,869 Small Cap U.S. Equity 5.07 2,042,987 1,708,617 334,371 1.11 22,626 Mutual Funds & ETFs 5.07 2,042,987 1,708,617 334,371 1.11 22,626 Fidelity Small Cap Index Fund FSSNX 5.07 27.81 73,462 2,042,987 1,708,617 334,371 1.11 22,626 Developed Markets Equity 12.09 4,876,776 4,223,318 653,458 2.81 136,988 Mutual Funds & ETFs 12.09 4,876,776 4,223,318 653,458 2.81 136,988 Fidelity International Index Fund FSPSX 12.09 53.40 91,325 4,876,776 4,223,318 653,458 2.81 136,988 Emerging Markets Equity 6.15 2,480,376 2,085,118 395,258 2.32 57,569 Mutual Funds & ETFs 6.15 2,480,376 2,085,118 395,258 2.32 57,569 Fidelity Emerging Markets Index Fund FPADX 6.15 11.59 214,010 2,480,376 2,085,118 395,258 2.32 57,569 Real Assets 4.12 1,660,481 1,566,859 93,622 2.80 46,575 U.S. Listed Real Estate 4.12 1,660,481 1,566,859 93,622 2.80 46,575 1119 PARS/CITY OF CUPERTINO 115P -OPEB Portfolio Holdings Account: XXXXXX9600 Holdings Method: Direct Report Date: 09/30/2024 © 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: 9/30/2024 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 4.12 61.57 26,969 1,660,481 1,566,859 93,622 2.80 46,575 1220 PARS/CITY OF CUPERTINO 115P-PENSION Portfolio Overview Account: XXXXXX9601 Holdings Method: Direct Report Date: 09/30/2024 © 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: 9/30/2024 Portfolio Summary Inv. Objective Balanced/Nontaxable-1 Total Portfolio Value $22,945,015 Net Realized Cap Gains YTD $0 Annual Income Projected $485,365 Current Yield 2.12% Number of Securities 10 Portfolio Mgr.Kenneth Donaldson, CFP®, CTFA Portfolio Asset Allocation Equity $14,958,736 65.19% Fixed Income $6,481,880 28.25% Real Assets $1,012,211 4.41% Cash $492,188 2.15% Invested Total $22,945,015 100.00% 65% 28% 4% 2% Equity Fixed Income Real Assets Cash Portfolio Model Allocation Cash Equivalents Investment Grade High Yield Reinsurance 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 Affluent Non-Taxable Strategic Balanced Affluent Non-Taxable Tactical Balanced 1321 PARS/CITY OF CUPERTINO 115P-PENSION Fixed Income Overview Account: XXXXXX9601 Holdings Method: Direct Report Date: 09/30/2024 © 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: 9/30/2024 Fixed Income Summary Inv. Objective Balanced/Nontaxable-1 Total Fixed Income Value $6,481,880 Current Yield 3.88% Annual Income Projected $251,756 Number of Securities 2 Portfolio Mgr.Kenneth Donaldson, CFP®, CTFA Fixed Income Asset Allocation Investment Grade $5,379,406 82.99% High Yield $1,102,474 17.01% 83% 17% Investment Grade High Yield Fixed Income Sector Exposures Mutual Funds & ETFs $6,481,880 100.00%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 1422 PARS/CITY OF CUPERTINO 115P-PENSION Equity Overview Account: XXXXXX9601 Holdings Method: Direct and Indirect (securities held in mutual funds & ETFs)Report Date: 09/30/2024 © 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: 9/30/2024 Equity Summary Inv. Objective Balanced/Nontaxable-1 Total Equity Value $14,958,736 Current Yield 1.21% Annual Income Projected $181,516 Number of Securities 6 Portfolio Mgr.Kenneth Donaldson, CFP®, CTFA Equity Asset Allocation Large Cap U.S.$6,879,429 45.99% Mid Cap U.S.$2,804,625 18.75% Developed Markets $2,695,116 18.02% Emerging Markets $1,409,844 9.42% Small Cap U.S.$1,169,722 7.82% 46% 19% 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) HNACXJVLIXFSMDXFSPSXFPADXFSSNX 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% Equity Global Distribution North America Asia Europe Middle East South America Africa 73.13% 12.85% 12.54% 0.79% 0.43% 0.27% Equity Country Distribution United States Japan United Kingdom Hong Kong France 72.13% 3.82% 2.76% 2.44% 2.05% 1523 PARS/CITY OF CUPERTINO 115P-PENSION Common Stock Detail Account: XXXXXX9601 Holdings Method: Direct and Indirect (securities held in mutual funds & ETFs)Report Date: 09/30/2024 © 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: 9/30/2024 Top 10 Common Stock Holdings Stock Wt. (%) Full Port Wt. (%)Yield (%) YTD Return (%)* 52 Wk Return (%)* NVIDIA Corporation 1.98 1.33 0.03 145.3 179.3 Amazon.com, Inc.1.85 1.24 0.00 22.6 46.6 Microsoft Corporation 1.83 1.22 0.80 15.0 37.3 Apple Inc.1.31 0.88 0.44 21.5 36.8 Meta Platforms Inc Class A 1.28 0.86 0.34 62.2 91.3 Broadcom Inc.1.14 0.76 1.14 56.2 110.9 Alphabet Inc. Class A 1.02 0.68 0.49 19.0 27.1 JPMorgan Chase & Co.0.98 0.66 2.34 26.2 49.1 Eli Lilly and Company 0.98 0.65 0.57 52.7 66.0 Taiwan Semiconductor Manufa…0.84 0.56 1.47 63.4 86.3 Common Stock Characteristics Portfolio S&P 500 Market Cap -Wtd Avg $357.7B $999.7B Market Cap -Median $5.7B $38.1B Dividend Yield (%)1.84 1.45 P/E NTM 17.9 21.7 P/E LTM 21.1 27.2 ROE (%)20.5 29.7 1 Yr Beta vs. S&P Composite .92 1.01 Est 3-5 Yr EPS Growth (%)14.9 14.8 Hist 3 Yr EPS Growth (%)24.6 25.3 Number of Securities 4911 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 6.85 8.86 11.56 10.11 5.38 5.89 4.11 3.31 15.55 12.91 11.11 11.60 11.80 8.51 18.36 31.70 3.60 2.23 9.30 2.34 2.38 2.53 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% 90%Portfolio S&P 500 *Specific to the security -does not represent performance in the portfolio. 1624 U.S. Bank Confidential Custom Benchmark ActualTargetRangeBenchmarkAsset Class 65.2%63%50%-70%MSCI AC World Free IndexEquities 28.3%29%20%-40%BBARC Global Aggregate IndexFixed Income 4.4%5%0%-15%S&P Global REIT TR USDReal Estate 0%2%0%-10%S&P GSCI Commodity IndexCommodities 2.1%1%0%-10%FTSE 3-Mo US T-Bill IndexCash CITY OF CUPERTINO PENSION 1725 Selected Period Performance Period Ending: 09/30/2024PARS/CITY OF CUPERTINO 115P- PENSION (****059601) Selected Period Performance Year Inception to Date to Date Market Value 1 Month 3 Months (9 Months) 1 Year 3 Years 5 Years 05/01/2019 Total Portfolio Gross of Fees 22,967,000 1.66 6.11 12.92 24.56 3.99 8.44 8.00 Total Portfolio Net of Fees 22,967,000 1.64 6.07 12.78 24.35 3.81 8.25 7.81 City of Cupertino 2.15 6.96 13.77 25.09 4.97 8.26 7.98 Total Equity 14,958,736 1.71 6.09 16.54 30.47 5.85 12.43 11.24 Domestic Equity 10,853,776 1.41 5.59 17.55 32.58 8.03 13.27 12.22 S&P 500 Index (Total Return)2.14 5.89 22.08 36.35 11.91 15.98 15.07 S&P MidCap 400 Index 1.16 6.94 13.54 26.79 7.47 11.78 10.61 S&P SmallCap 600 Index .85 10.13 9.33 25.86 3.99 10.21 8.95 Foreign Equity 4,104,960 2.53 7.44 13.93 25.00 .08 9.90 8.44 MSCI EAFE Index (Net).92 7.26 12.99 24.77 5.48 8.20 7.50 MSCI Emerging Markets Index (Net)6.68 8.72 16.86 26.05 .40 5.75 4.17 Total Fixed Income 6,501,849 1.46 5.13 5.09 12.10 -.19 -.29 .48 BBARC US Aggregate Bond Index 1.34 5.20 4.45 11.57 -1.39 .33 1.28 BBARC Global Aggregate Index 1.70 6.98 3.60 11.99 -3.06 -.83 .01 Total Real Assets 1,012,211 2.64 16.00 15.69 34.58 4.44 5.26 6.54 Real Estate 1,012,211 2.64 16.00 15.69 34.58 4.44 5.26 6.54 S&P Global REIT Index (Gross)3.27 16.34 13.92 31.93 3.00 3.62 4.83 S&P GSCI Index -.08 -5.26 5.23 -6.06 8.81 8.03 5.72 Total Cash Equivalents 494,205 .41 1.30 3.96 5.34 3.42 2.19 2.19 ICE BofAML US 3-Month Treasury Bill Index .43 1.37 4.03 5.46 3.49 2.32 2.33 Pending Cash 0 .00 .00 .00 .00 .00 .00 .00 1826 PARS/CITY OF CUPERTINO 115P-PENSION Portfolio Holdings Account: XXXXXX9601 Holdings Method: Direct Report Date: 09/30/2024 © 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: 9/30/2024 Symbol % of Port.Price Shares/ Units Portfolio Value Cost Basis Unrealized Gain/Loss Current Yield Projected Annual Income Total 100.0 22,945,015 19,314,279 3,630,736 2.12 485,365 Cash 2.15 492,188 492,188 0 4.82 23,702 Cash Equivalents 2.15 492,188 492,188 0 4.82 23,702 FIRST AM GOVT OB FD CL X 31846V336 2.15 1.00 492,188 492,188 492,188 0 4.82 23,702 Fixed Income 28.25 6,481,880 6,442,206 39,673 3.88 251,756 Investment Grade 23.44 5,379,406 5,298,190 81,216 3.15 169,370 Mutual Funds & ETFs 23.44 5,379,406 5,298,190 81,216 3.15 169,370 Fidelity U.S. Bond Index Fund FXNAX 23.44 10.64 505,583 5,379,406 5,298,190 81,216 3.15 169,370 High Yield 4.80 1,102,474 1,144,016 -41,542 7.47 82,385 Mutual Funds & ETFs 4.80 1,102,474 1,144,016 -41,542 7.47 82,385 Artisan High Income Fund -Institutional Sh…APHFX 4.80 9.19 119,964 1,102,474 1,144,016 -41,542 7.47 82,385 Equity 65.19 14,958,736 11,434,134 3,524,602 1.21 181,516 Large Cap U.S. Equity 29.98 6,879,429 5,608,201 1,271,228 0.47 32,267 Mutual Funds & ETFs 29.98 6,879,429 5,608,201 1,271,228 0.47 32,267 Harbor Capital Appreciation Fund -Retire…HNACX 15.10 118.92 29,126 3,463,613 2,504,520 959,094 0.00 0 John Hancock Fds III Disciplined Value Fu…JVLIX 14.89 25.83 132,242 3,415,816 3,103,681 312,135 0.94 32,267 Mid Cap U.S. Equity 12.22 2,804,624 1,386,296 1,418,328 0.99 27,866 Mutual Funds & ETFs 12.22 2,804,624 1,386,296 1,418,328 0.99 27,866 Fidelity Mid Cap Index Fund FSMDX 12.22 34.32 81,720 2,804,624 1,386,296 1,418,328 0.99 27,866 Small Cap U.S. Equity 5.10 1,169,722 972,122 197,600 1.11 12,955 Mutual Funds & ETFs 5.10 1,169,722 972,122 197,600 1.11 12,955 Fidelity Small Cap Index Fund FSSNX 5.10 27.81 42,061 1,169,722 972,122 197,600 1.11 12,955 Developed Markets Equity 11.75 2,695,116 2,286,209 408,907 2.81 75,706 Mutual Funds & ETFs 11.75 2,695,116 2,286,209 408,907 2.81 75,706 Fidelity International Index Fund FSPSX 11.75 53.40 50,470 2,695,116 2,286,209 408,907 2.81 75,706 Emerging Markets Equity 6.14 1,409,844 1,181,306 228,538 2.32 32,722 Mutual Funds & ETFs 6.14 1,409,844 1,181,306 228,538 2.32 32,722 Fidelity Emerging Markets Index Fund FPADX 6.14 11.59 121,643 1,409,844 1,181,306 228,538 2.32 32,722 Real Assets 4.41 1,012,211 945,750 66,461 2.80 28,392 U.S. Listed Real Estate 4.41 1,012,211 945,750 66,461 2.80 28,392 1927 PARS/CITY OF CUPERTINO 115P-PENSION Portfolio Holdings Account: XXXXXX9601 Holdings Method: Direct Report Date: 09/30/2024 © 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: 9/30/2024 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 4.41 61.57 16,440 1,012,211 945,750 66,461 2.80 28,392 2028 U.S. Bank Confidential MARKET SUMMARY Provided by Sub-Advisor - PFM Asset Management LLC 2129 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2024 Multi-Asset Class Management QTD YTD One Year Three Year Five Year Seven Year Ten Year DOMESTIC EQUITY S&P 500 (TR)5.89% 22.08% 36.19% 11.88% 15.91% 14.44% 13.33% Russell 3000 6.23% 20.63% 35.04% 10.26% 15.20% 13.69% 12.78% Russell 1000 Growth 3.19% 24.55% 42.00% 11.99% 19.66% 18.14% 16.46% Russell 1000 6.08% 21.18% 35.52% 10.80% 15.58% 14.13% 13.06% Russell 1000 Value 9.43% 16.68% 27.64% 9.00% 10.65% 9.50% 9.20% Russell Midcap 9.21% 14.63% 29.20% 5.74% 11.25% 10.44% 10.16% Russell Midcap Growth 6.54% 12.91% 29.21% 2.31% 11.43% 11.84% 11.26% Russell Midcap Value 10.08% 15.08% 28.89% 7.37% 10.29% 8.79% 8.90% Russell 2000 Growth 8.41% 13.22% 27.54% -0.35% 8.78% 7.57% 8.92% Russell 2000 9.27% 11.17% 26.65% 1.84% 9.35% 7.34% 8.75% Russell 2000 Value 10.15% 9.22% 25.77% 3.76% 9.25% 6.58% 8.19% INTERNATIONAL EQUITY MSCI EAFE 7.26% 12.99% 24.66% 5.47% 8.17% 5.97% 5.69% MSCI AC World 6.61% 18.66% 31.62% 8.07% 12.14% 10.20% 9.35% MSCI AC World ex-USA 8.06% 14.21% 25.24% 4.13% 7.56% 5.42% 5.20% MSCI AC World ex-USA Small Cap 8.90% 11.93% 23.15% 1.39% 8.18% 5.18% 6.05% MSCI EM (Emerging Markets)8.72% 16.86% 25.94% 0.40% 5.73% 3.64% 4.01% ALTERNATIVES FTSE Nareit/Equity REITs - INV 16.09% 15.93% 34.58% 5.06% 5.43% 6.95% 7.80% MSCI US REIT INDEX 16.12% 15.84% 34.23% 4.97% 5.45% 6.94% 7.74% FTSE Global Core Infrastructure 50/50 Index 13.59% 16.20% 28.68% 6.69% 5.22% 6.16% 6.33% Bloomberg Commodity Index 0.68% 5.86% 0.95% 3.65% 7.76% 4.85% 0.03% FIXED INCOME Bloomberg U.S. Aggregate 5.20% 4.45% 11.52% -1.38% 0.33% 1.47% 1.84% Bloomberg U.S. Government/Credit 5.10% 4.39% 11.27% -1.50% 0.41% 1.63% 1.99% Bloomberg U.S. Intermediate Government/Credit 4.17% 4.68% 9.41% 0.17% 1.25% 1.89% 1.96% Bloomberg U.S. Treasury (1-3 Y) 2.91% 4.13% 6.76% 1.26% 1.48% 1.67% 1.40% ICE BofA U.S. High Yield 5.31% 8.05% 15.62% 3.07% 4.53% 4.55% 4.94% Bloomberg Global Aggregate ex-USD 8.52% 2.81% 12.23% -4.40% -1.85% -0.80% -0.50% CASH EQUIVALENT Bloomberg 3 Month T-Bill 1.38% 4.06% 5.48% 3.56% 2.36% 2.25% 1.67% Source: Investment Metrics. Returns are expressed as percentages. Please refer to the last page of this document for important disclosures relating to this material. 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.2230 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2024 Multi-Asset Class Management THE ECONOMY ►In the second quarter, U.S. gross domestic product (GDP) grew at an annualized rate of 3.0%, nearly double the 1.6% recorded in the first quarter of 2024, pointing to a still resilient economy. Within this reading, we saw domestic demand remain strong at 2.8% growth. The U.S. economy once again outperformed many other developed markets including the United Kingdom, which grew 1.8%; Japan, which grew 2.9%; and the Euro Area, which grew a meager 1.1% in the second quarter. ►The U.S. unemployment rate ended the quarter at 4.1%, in line with the end of second quarter, but still relatively higher than the 3.7% low at the beginning of the year. While the labor market appears to be cooling overall, there are several signs pointing to continued health as jobless claims remain firmly below their long-term averages and layoff rates continue to hold very low. ►Inflation continued to moderate in the second quarter. Headline inflation (CPI) grew at a year-over-year rate of 2.5% in August, down from the 3.0% growth in June. Core CPI, which excludes volatile food and energy, eased to a three year low of 3.2%. Both mark the lowest readings in more than three years and point to the progress made toward the Federal Reserve’s (Fed) inflation target of 2%. U.S. GDP Growth Source: Bloomberg. Light blue bars indicate actual numbers; dark blue bars indicate forecasted estimates. Labor Force Participation Rate Seasonally Adjusted (SA) Source: Bureau of Labor Statistics. 3.2%1.6%3.0%2.0%1.4%1.6%1.9% -40% -30% -20% -10% 0% 10% 20% 30% 40% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 2024 2025 Qo Q % C h a n g e , S A , A n n u a l i z e d 58% 59% 60% 61% 62% 63% 64% Oct-19 Oct-20 Oct-21 Oct-22 Oct-23 Source: Bureau of Labor Statistics. 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Sep-20 Sep-21 Sep-22 Sep-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.2331 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2024 Multi-Asset Class Management WHAT WE’RE WATCHING ►The Fed cut the overnight rate by 50 basis points (bps) (0.50%) to a new target range of 4.75% to 5.00% at its September 18 meeting, marking the first rate cut in more than four years. Looking forward, the Fed’s updated “dot plot” points to an additional 50 bps of rate cuts by the end of 2024 and 100 bps of cuts in 2025. Outside of the U.S., other major central banks also made rate changes during the quarter, with the European Central Bank (ECB) cutting rates and the Bank of Japan (BOJ) hiking rates for the second time this year. ►U.S. manufacturing activity dipped back into contraction during the second quarter, with the ISM U.S. Manufacturing PMI reading at 47.2 in September, signaling weak demand. The services sector crept up into expansion territory, with the Services PMI rising to 51.5 in September. ►Consumer confidence, as measured by the University of Michigan’s Consumer Sentiment survey, rose in September after a dip earlier in the quarter, and ended at 70.1, up from the 68.2 reading at the end of the first quarter. ►In response to the weakness across the economy, China’s central bank unveiled several new monetary and fiscal policies to restore consumer confidence and boost growth. They include lowering bank reserve requirements, cutting its key policy rate, and pledging support to relieve local government debt, among other measures. Global Central Bank Rates Source: Bloomberg. U.S. ISM Manufacturing & Services PMI Source: Bloomberg. 40 45 50 55 60 65 70 Sep-20 Sep-21 Sep-22 Sep-23 Sep-24 Manufacturing Services -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Sep-20 Sep-21 Sep-22 Sep-23 Sep-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 Sep-20 Sep-21 Sep-22 Sep-23 Sep-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.2432 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2024 Multi-Asset Class Management DOMESTIC EQUITY ►The S&P 500 Index (S&P) posted a 5.9% return for the third quarter of 2024. As of September 30, 2024, the trailing one-year return for the index was 36.2%. ►During the quarter, equity performance broadened beyond mega-cap stocks as the S&P 500 equal-weighted index outperformed its capitalization-weighted counterpart. Across market cap segments, value indices outperformed growth indices for the quarter. ►Within S&P 500, only one of 11 GICS sectors posted negative returns over the quarter. The worst performing sectors were Energy (-2.3%), Information Technology (1.6%), and Communication Services (1.7%). The best performing sectors were Utilities (19.4%), Real Estate (17.2%), and Industrials (11.6%). ►Small-caps, as represented by the Russell 2000 Index, returned 9.3% during the quarter, and outperformed both mid-caps and large-caps. The Russell Midcap and Russell 1000 indices returned 9.2% and 6.1%, respectively. ►According to FactSet Earnings Insight (as of September 27, 2024), the expected year-over-year earnings growth rate for the S&P 500 for Q3 2024 was 4.6%, down from the June 30 estimate of 7.8%. At the sector level, Energy (-0.6% to -18.3%) and Materials (7.6% to -1.9%) saw the biggest downward revisions in YoY earnings growth estimates from June 30 to September 27. Conversely, the only sectors revised upward during this period were Information Technology (15.2% to 15.6%) and Communication Services (10.0% to 10.4%). ►As of the end of the quarter, the S&P 500 forward P/E (price-to-earnings) ratio was 26.0, above its five-year average of 22.7. By comparison, the Russell 2000 had a forward P/E ratio of 19.9, above its five-year average of 17.8. PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public. Source: Bloomberg. S&P 500 Index Performance by Sector Periods Ended September 30, 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 7.80% 8.96% -2.32% 10.66% 6.07% 11.55% 1.61% 9.70% 17.17% 1.68% 19.37% YTD 13.91% 18.74% 8.36% 21.90% 14.35% 20.20% 30.31% 14.14% 14.31% 28.81% 30.63% 1 Year 27.97% 25.25% 0.79% 38.82% 21.62% 35.71% 52.50% 25.12% 35.71% 42.78% 41.68% -10% 0% 10% 20% 30% 40% 50% 60% 0 5 10 15 20 25 30 10 15 20 25 30 35 Oct-19 Oct-20 Oct-21 Oct-22 Oct-23 S& P 6 0 0 S& P 5 0 0 S&P 500 S&P 500 5-Year Average Russell 2000 Russell 2000 5-Year Average 2533 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 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, significantly outperformed their U.S. counterparts, returning 8.06% for the quarter. The weaker dollar was a tailwind to these returns. ►Nine of the 11 sectors posted positive returns for the quarter, with Real Estate (16.90%) leading the way, followed by Communication Services (13.55%) and Utilities (13.41%). Energy (-1.73%) and Information Technology (-1.58%) were the worst performers for the quarter. ►Developed ex-U.S. Markets, as represented by the MSCI EAFE Index, underperformed emerging markets (EM), represented by the MSCI Emerging Market Index, returning 7.26% versus 8.72% for the quarter. ►MSCI Australia (11.32%) outperformed the MSCI EAFE Index on the back of cooling inflation. Of the five largest-weighted countries in the index, MSCI Japan (5.80%) was the worst performer. The surprise July rate hike and subsequent yen’s appreciation reduced the prospects of higher profits for Japanese exporters. ►Within EM, EM Asia (9.47%) was the largest contributor to overall returns during the quarter, benefitting from MSCI China’s strong return of 23.49%. Chinese equities experienced a sharp rally in September, powered by the injection of additional stimulus. MSCI Korea on the other hand, declined 5.94% during the quarter as the technology sell-off impacted index heavyweights - Samsung and SK Hynix. ►Value stocks outperformed growth stocks for the quarter, as represented by the broad benchmark. MSCI AC World ex-USA Value returned 9.26%, while MSCI AC World ex-USA Growth returned 6.92%. Within EM, growth outperformed value, returning 9.26% versus 8.12%. ►Small-caps, as represented by MSCI ACWI ex-U.S. Small Cap Index, outperformed within the international equity markets, returning 8.90% for the quarter. ►Valuations of non-U.S. equities have moved closer to their long-term average across international equity markets. As of September 30, MSCI EAFE’s forward P/E stood at 15.77 versus a five-year average of 16.06. MSCI EM ended the quarter with a forward P/E ratio of 14.02, slightly higher than its five-year average of 13.32. PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public. Source: Bloomberg. MSCI ACWI ex-U.S. Sectors Periods Ended September 30, 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 Healthcar e Industrials Info Tech Materials Real Estate Telecom Utilities QTD 11.52% 10.52% -1.73% 11.35% 6.40% 8.70% -1.58% 9.36% 16.90% 13.55% 13.41% YTD 13.87% 5.19% 4.78% 20.94% 14.49% 15.71% 15.32% 5.55% 11.16% 20.60% 12.46% 1 Year 20.37% 11.12% 7.24% 33.18% 20.40% 30.53% 38.32% 18.77% 23.50% 26.25% 27.70% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 8 10 12 14 16 18 20 22 24 26 Oct-19 Oct-20 Oct-21 Oct-22 Oct-23 MSCI EAFE MSCI EAFE 5-Year Average MSCI Emerging Markets MSCI Emerging Markets 5-Year Average 2634 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2024 Multi-Asset Class Management FIXED INCOME ►The U.S. bond market, as represented by the Bloomberg U.S. Aggregate (Aggregate) Index, had a strong third quarter, and ended 5.20% higher. The trailing one-year period return is 11.54%. ►The Bloomberg U.S. Treasury Index closed the quarter with a gain of 4.74%. During the period, the Federal Open Market Committee (FOMC) initiated its first rate cut of the cycle, lowering the Fed funds Rate by 50 bps. This was more than many market participants had anticipated. Treasury rates beyond the one-year range generally fell during the period. The yield curve steepened during the quarter and dis-inverted for the first time in over two years as the Fed funds rate is targeted at 5.0%. Meanwhile, the 10-year fell to 3.78%, and the 2-year ended at 3.64%. ►Corporate credit had mixed results for the quarter on the falling rates but spots of widening spreads. The investment grade Bloomberg U.S. Corporate (IG Corp) Index gained 5.84% while high yield bonds, as represented by the Bloomberg U.S. Corporate High Yield (HY) Index, gained 1.09%. Spreads tightened in the “CCC” category, but “BB” performed the worst in the high yield category. ►The fixed-rate mortgage market, as measured by the Bloomberg U.S. Mortgage-Backed Securities (MBS) Index, gained 5.53%. On the commercial side, returns were positive, with the Bloomberg U.S. Agency CMBS Index up 4.74%, while the non-agency CMBS index gained 4.55%. ►Emerging market USD sovereign bonds, as represented by the JP Morgan EMBI Global Diversified index, gained 6.15% and were supported by sovereign names. Latin America saw the strongest returns for the quarter. PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public. Source: Bloomberg. Returns for Fixed-Income Segments Periods Ended September 30, 2024 Source: Bloomberg. U.S. Treasury Yield Curve 3.64%3.56%3.78%4.12% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 9/30/2023 6/30/2024 9/30/2024 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 5.20%4.74%5.53%5.84%5.28% YTD 4.45%3.84%4.50%5.32%8.00% 1 Year 11.54%9.69%12.28%14.24%15.70% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2735 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2024 Multi-Asset Class Management ALTERNATIVES ►Public REITs, as measured by the FTSE NAREIT Equity REITs Index, returned 16.09% in the third quarter of 2024, compared to a 0.06% return in the prior quarter. All major sectors saw positive returns. The strong performance can be attributed to expectations of monetary policy easing and falling real interest rates. Private real estate, as measured by the NCREIF Property Index, fell -0.22% in the second quarter of 2024. Weak performance has been driven by property value declines stemming from weak demand and oversupply, primarily within the Office and Apartment sectors. However, value declines are leveling off, and the income component of total returns continues to be positive. ►Listed infrastructure, as measured by the S&P Global Infrastructure Index, gained 13.43% in the third quarter of 2024, compared to a 2.67% increase in the prior quarter. Performance was mostly positive across the major sectors. In the first half of 2024, 25 infrastructure funds raised $42.24 billion, a modest figure despite the broad slowdown seen in private markets fundraising. The asset class has received increased attention in recent years due to its potential to generate resilient, inflation-sensitive returns. Artificial intelligence and its prospective applications across industries have also contributed to the positive sentiment, especially for data center and utilities. According to PitchBook, infrastructure funds posted a return of 2.77% in Q1 2024. The asset class has generated an annualized return of 10.08% for the five years ended Q1 2024. ►In the first half of 2024, 59 private debt funds raised $90.77 billion and rebounded from a slow start to the year. The asset class has performed well relative to public fixed income over the long-term. However, competition between private debt managers and a resurgence of the broadly syndicated loan market against the backdrop of a declining rate environment may keep future asset class returns in check. According to the Cliffwater Direct Lending Index, U.S. middle market loans, a proxy for private debt, posted a return of 3.02% in Q1 2024. The asset class has also generated an annualized return of 9.15% for the five years ended Q1 2024. ►In the first half of 2024, 250 private equity funds raised $295.64 billion, a strong pace despite a challenging macroeconomic environment. Private equity performance has been muted due to high borrowing costs, limited debt availability, and reduced deal flow. Recent trailing performance has lagged public equity indices; however, longer term performance relative to public equities remains strong. According to Cambridge Associates, U.S. private equity posted a return of 1.75% in Q1 2024. The asset class has generated an annualized return of 17.01% for the five years ended Q1 2024. PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public. Source: NCREIF, PitchBook, Cliffwater, Cambridge Associates. As of March 31, 2024, the most recent period for which all index data is available. Returns for Private Capital Assets Sources: Pitchbook. * Total capital raised in 2024 as of June 30, 2024 - most recent period for which ALL fundraising data is available. ** Cumulative dry powder as of December 31, 2023, unless specified otherwise. *** Excluding open-end, evergreen fund vehicles. Private Capital Fundraising & Dry Powder Private Real Estate Infrastructure Private Debt Private Equity QTD -0.98%2.77%3.02%1.75% YTD -0.98%2.77%3.02%1.75% 1 Year -7.20%9.19%12.49%8.29% -10% -5% 0% 5% 10% 15% Private Real Estate*** Private Infrastruc ture*** Private Debt Private Equity Venture Capital YTD Fundraising ($B)*$29.55 $42.24 $90.77 $295.64 $84.39 Dry Powder ($B)**$389.73 $369.11 $520.24 $1,485.13 $652.15 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $ B i l l i o n s 2836 QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 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.2937 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. 3038 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 3139 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. 3240 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. 3341 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 untilmaturity. 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. 3442 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. 3543 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. 3644 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 proceeds is the lower of the two numbers, a loss was incurred. This data is for information purposes only. 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. 3745 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. 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. 3846 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. 3947 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. 4048 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. 4149 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. 4250 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. 4351 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. 4452 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. 4553 CITY OF CUPERTINO Agenda Item 24-13475 Agenda Date: 10/31/2024 Agenda #: 3. 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 4:30(10) CITY OF CUPERTINO Printed on 10/30/2024Page 1 of 1 powered by Legistar™54 October 21, 2024 To: City of Cupertino Audit Committee From: Moss Adams LLP Subject: Internal Audit Status Report July 16 through October 21, 2024 _____ FY23-24 INTERNAL AUDIT PROGRAM CITYWIDE POLICY REVIEW Objective 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. Schedule September 2023 through September 2024 Activities for This Period Finalized report and present to the Audit Committee Activities for Next Period None Issues None FY24-25 INTERNAL AUDIT PROGRAM GRANTS MANAGEMENT INTERNAL CONTROLS REVIEW SPECIAL REVENUE FUND PROCESS REVIEW RECOMMENDATION VALIDATION PROCESS ESTABLISHMENT ONGOING INTERNAL AUDIT SERVICES Objective Assess the internal controls in place over the City’s grants management activities (including applications, review, administration, and reporting). Document the process used for special revenue fund accounting, identify gaps compared to best practices, and conduct testing of prior years’ accounting. Inventory prior internal and external audit recommendations, collaborate with City staff to develop a tracking mechanism and process to report and validate recommendation implementation. Attend Audit Committee and Council meetings, prepare status reports, manage internal audit program, and monitor FWA hotline. Schedule January through April 2025 August through December 2024 July 2024 through June 2025 July 2024 through June 2025 Activities for This Period N/A Held kickoff meeting and requested documents. Developed initial tracking spreadsheet, requested documentation to begin validating recommendations City staff report are implemented. Met monthly with City staff, monitored FWA hotline, and provided assistance at the City’s request. Activities for Next Period None Received documents, conduct analysis, develop preliminary observations and draft report. Validate recommendations City staff report are implemented to determine status. Continue to monitor FWA hotline and provide ongoing support to City. Issues None None None None 55 FRAUD, WASTE, AND ABUSE HOTLINE STATISTICS: QUARTERLY Complaint Type Complaints Received This Quarter Under Review Referred to Appropriate City Official(s) Closed Compliance & Ethics 3 0 3 3 Fraud 1 0 1 1 Employment Matters 2 0 2 2 HOTLINE STATISTICS: LIFETIME (OCTOBER 2022-PRESENT) Total Reports 28 Reports Closed 23 Reports Open 5 \ 56 CITY OF CUPERTINO Agenda Item 24-13480 Agenda Date: 10/31/2024 Agenda #: 4. Subject:INFORMATIONAL ITEM Fiscal Year 2023-24 Annual Comprehensive Financial Report (ACFR) Update Receive Fiscal Year 2023-24 Annual Comprehensive Financial Report (ACFR) Update Presenter: The Pun Group 4:40(15) CITY OF CUPERTINO Printed on 10/30/2024Page 1 of 1 powered by Legistar™57 CITY OF CUPERTINO Agenda Item 24-13477 Agenda Date: 10/31/2024 Agenda #: 5. Subject:ACTION ITEM Review and Accept the City-Wide Policy Inventory and Gap Analysis Report Review and Accept the City-Wide Policy Inventory and Gap Analysis Report Presenter: Moss Adams 4:55(20) CITY OF CUPERTINO Printed on 10/30/2024Page 1 of 1 powered by Legistar™58 FINAL REPORT City of Cupertino CITY-WIDE POLICY INVENTORY AND GAP ANALYSIS September 11,2024 Moss Adams LLP 999 Third Avenue, Suite 2800 Seattle, WA 98104 (206)302-6500 59 City-Wide Policy Inventory and Gap Analysis FOR INTERNAL USE OF CITY OF CUPERTINO ONLY Table of Contents Background, Scope, and Methodology 1 A.Background 1 B.Scope and Methodology 1 Overall Results 4 Prioritized P&P Work Plan 5 A.Administrative Services 5 B.City Manager’s Office 5 C.Community Development 6 D.Innovation and Technology 7 E.Law Enforcement 7 F.Parks and Recreation 7 G.Public Works 8 60 City-Wide Policy Inventory and Gap Analysis |1 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY BACKGROUND, SCOPE, AND METHODOLOGY The City of Cupertino (the City)requested that Moss Adams LLP (Moss Adams), as the City’s internal auditor,perform an inventory of Citywide Administrative policies and procedures (P&Ps)and provide a gap analysis to determine whether gaps in coverage exist, and develop a prioritized P&P work plan to support the City in addressing identified gaps. The objectives of this project were to: Determine which Citywide departments are adequately covered by comprehensive and current P&Ps. Identify the gaps within each policy, including areas where: ○There were no documented policies to support departmental functions ○Existing policies that are outdated or in need of minor updates or additions,and; ○Current internal control or gap coverage is missing key components. Prioritize policy gaps based on overall risk and develop an implementation plan to provide the City with recommendations for prioritizing and addressing identified policy gaps. This engagement was performed in accordance with Standards for Consulting Services established by the American Institute of Certified Public Accountants. Accordingly, we provide no opinion, attestation, or other form of assurance with respect to our work or the information upon which our work is based. This report was developed based on our assessment of the City’s departmental Administrative P&Ps we requested as of October 2023, however, some departments required additional time to provide all P&Ps and therefore, P&Ps were received up through June 2024.The procedures we performed do not constitute an examination in accordance with generally accepted auditing standards or attestation standards. The scope of this project included Administrative P&Ps in each of the following City departments: Administrative Services City Manager’s Office Community Development Innovation and Technology Law Enforcement Parks and Recreation Public Works ○Capital Improvement Program The scope does not include the City’s finance and accounting functional areas, which were addressed in our report titled “Fiscal Policy Inventory and Gap Analysis” from May 2022. The scope also does not include City Council P&Ps and P&Ps adopted by Council Resolution, which are more legislative in nature compared to the in-scope Administrative P&Ps, which are more operationally 61 City-Wide Policy Inventory and Gap Analysis |2 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY focused.Citywide Administrative P&Ps are reviewed and approved by the City Manager and department-specific P&Ps are reviewed and approved by the respective Department Head. All Administrative P&Ps available as of October 2023 through June 2024 were provided to Moss Adams to assess as part of this project. Other P&P documents, informal process documentation,or guideline documents that are not approved formal P&Ps at the City level may exist; however, they were not included in this analysis and are therefore not included in the results presented in this report. The procedures performed included: Citywide P&P Inventory We worked with the City to determine that the following departments would be included in the scope of this project: ○Administrative Services ○City Manager’s Office ○Community Development ○Innovation and Technology ○Law Enforcement ○Parks and Recreation ○Public Works −Capital Improvement Program For each department, we performed the following: ○Obtained all available P&P documents. ○Documented a full inventory of existing P&Ps, including a summary of the coverage areas and age of each P&P. ○Discussed the full inventory of results with the City to ensure that all P&Ps were provided and included in the inventory for each department listed above. Citywide P&P Gap Analysis We performed a full gap analysis of departmental P&Ps including: ○Identifying potential gaps in coverage for the current departmental P&Ps. ○Assessing the current departmental P&Ps for opportunities to improve the overall content and flow/structure, incorporate best practices, and improve internal controls, where possible, to provide effective resources for employees. ○Summarizing the gaps identified for all policies within the gap analysis. ○Categorizing the significance and extent of the identified gaps as follows: full gaps, major gaps,or minor gaps. Additionally, we identified policies that need to be reviewed for potential updates. 62 City-Wide Policy Inventory and Gap Analysis |3 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY Prioritized P&P Work Plan Development Based on the results of the P&P inventory and gap analysis performed, we developed detailed recommendations, by department,for the City to use as a road map for developing,amending, or updating policies. We assigned a risk level (high, medium,or low), as described in the following table, and a recommended priority order by phase based on the risk level. We discussed the prioritized policies work plan with management, gathered input on the work plan, and made updates, as appropriate. Gaps identified during the analysis were categorized as follows: Full Gap:Documented P&Ps do not exist for the area. Major Gap:Some P&P documentation exists; however, there are major gaps in overall coverage. Minor Gap:P&Ps cover most of the key areas but require some updating or additional coverage. Update Needed:The P&P needs to be reviewed for potential updates. The assessed risk level, category descriptions,and recommended phases/timing for addressing the gaps and related recommendations are described in the following table. The risk levels were assigned based on our understanding of the City, insights gained from management, the inherent risk in each area,and the level and significance of gaps identified. Assessed Risk Level Category Description Recommended Phase/Timing High Risk ●Area is inherently high risk ●Gaps identified were either full gaps (i.e.,no P&P coverage) or major gaps ●Area is a high priority for the City’s operations and structure Phase One (within 6 months of fiscal year end – June 2025) Medium Risk ●Area is inherently high or medium risk; however, a lack of documented P&Ps may only represent a medium risk to the City ●Gaps identified were either full gaps or major gaps ●Area is a high priority for the City’s operations and structure Phase Two (within 12 months of fiscal year end – December 2025) Low Risk ●Area is inherently low risk ●Gaps identified were either minor in significance or magnitude,or the area only needed review or updating ●Area is a low priority for the City’s operations and structure Phase Three (within 18 months of fiscal year end – June 2026) 63 City-Wide Policy Inventory and Gap Analysis |4 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY OVERALL RESULTS Throughout the P&P inventory and gap analysis, we found that the Citywide departments have a variety of P&P documents; however, they are not consistently utilized, structured, or based on standard templates Citywide. The City does not have a defined Citywide P&P framework and,as a result, in many cases it was unclear what level of policy a document fell under or whether a P&P was a policy, memorandum, or standard operating procedure. In addition, the City does not have a standard template/format and there does not appear to be a structure for ensuring all policies are supported by underlying procedures. Utilizing a defined P&P framework with standard templates will help streamline the City’s P&P resources. This framework can be used to define responsibilities at both the City Council and management level. After completing the policy and procedure gap analysis for the Law Enforcement Department we were informed that given that they contract with Santa Clara Sheriff’s Office the City’s policies and procedures are not public record and could not be provided. As we were not able to review these policies, we recommend that the City assess whether the policies cover the topics detailed below.In the Prioritized P&P Work Plan, we have marked the Type of Gap, Associated Risk, and Recommended Priority Level columns as “N/A” as the City will need to perform this assessment. The City can utilize the Prioritized P&P Work Plan,presented in the following section,to carry out their efforts in developing and updating their Citywide P&Ps. In addition to the following summary table, we have provided management with a detailed Prioritized P&P Work Plan,which includes all results from the inventory and gap analysis performed and detailed recommendations by area. 64 City-Wide Policy Inventory and Gap Analysis |5 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY PRIORITIZED P&P WORK PLAN Policy Name Type of Gap Associated Risk Recommended Priority Level Vehicle Use Policy Minor Gap Medium 2 Anti-Bullying Policy and Signature Sheet Update Needed Low 3 Children in the Workplace Policy Updated Needed Low 3 Debt Management Policy Update Needed Low 3 Employee Events Minor Gap Low 3 Employee Service –Retirement Awards Policy Minor Gap Low 3 Hiring Retired Annuitants Policy Update Needed Low 3 Interim Parking Policy Update Needed Low 3 Rec Bucks Program Policy Update Needed Low 3 Reclass Policy Update Needed Low 3 Return to Work Policy Update Needed Low 3 Risk Management Policy Update Needed Low 3 Salary Admin Procedures Update Needed Low 3 Surety Deposit Policy Update Needed Low 3 Travel Policy Update Needed Low 3 Unclaimed Property Update Needed Low 3 Volunteer Intern Process Policy Update Needed Low 3 Policy Name Type of Gap Associated Risk Recommended Priority Level Candidate Restriction on Campaign Activity Minor Gap Medium 2 Redaction Policy Minor Gap Medium 2 65 City-Wide Policy Inventory and Gap Analysis |6 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY Policy Name Type of Gap Associated Risk Recommended Priority Level Record Retention Schedule Policy Minor Gap Medium 2 Social Media Policy Minor Gap Medium 2 Sponsorship Policy Minor Gap Medium 2 Trusted Electronics System Policy for Management of City Records Minor Gap Medium 2 Business Cards for Councilmembers, Commissioners, and Staff Minor Gap Low 3 City Hall Meeting Room Use Policy Minor Gap Low 3 Council Orientation Guidelines Update Needed Low 3 Employee and City Officer Restrictions - Political Activities Update Needed Low 3 Naming of City Facilities Policy Update Needed Low 3 News Media Contact Relations Policy Update Needed Low 3 Outgoing Mayor & Councilmember Gifts Policy Update Needed Low 3 Telephone Etiquette Policy Minor Gap Low 3 Policy Name Type of Gap Associated Risk Recommended Priority Level New Planning Employee Training Manual Minor Gap Medium 2 Comparison Matrix for Existing and New Construction Minor Gap Low 3 Plans Required to be Prepared Minor Gap Low 3 Protection of Wiring during Construction Minor Gap Low 3 Reinspection Fee Policy Minor Gap Low 3 Temporary Certificate of Occupancy Procedure Minor Gap Low 3 Survey Policy No Gap N/A N/A 66 City-Wide Policy Inventory and Gap Analysis |7 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY Policy Name Type of Gap Associated Risk Recommended Priority Level City Channel Policies and Procedures Update Needed Medium 2 Intranet Policy Update Needed Medium 2 Photo Identification Policy Update Needed Medium 2 Technology Use Policy Minor Gap Medium 2 Email Retention Policy Update Needed Low 3 Electronic Communications Policy Minor Gap Low 3 Internet Access and Use Policy Minor Gap Low 3 MS Teams Governance Update Needed Low 3 Policy Name Type of Gap Associated Risk Recommended Priority Level Arrest and Detention Policy and Procedures N/A N/A N/A Bias-Free Policing Policy and Procedures N/A N/A N/A Complaints and Discipline Policy and Procedures N/A N/A N/A Reporting and Accountability Policy and Procedures N/A N/A N/A Training and Professional Development Policy and Procedures N/A N/A N/A Use of Force Policy and Procedures N/A N/A N/A Policy Name Type of Gap Associated Risk Recommended Priority Level Cupertino Senior Center Internal Policies Update Needed Medium 2 Front Office Rental Policies and Procedures Minor Gap Medium 2 67 City-Wide Policy Inventory and Gap Analysis |8 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY Policy Name Type of Gap Associated Risk Recommended Priority Level Sport Center Sign Policy Update Needed Medium 2 Community Special Events in Memorial Park Approved Update Needed Low 3 Policy Name Type of Gap Associated Risk Recommended Priority Level Capital Improvement Program: Capital Improvement Policy Major Gap High 1 Paper Procurement Policy Minor Gap Medium 2 Polychlorinated biphenyls (PCB) Demo Management Policy Minor Gap Medium 2 Pool Vehicle Use Minor Gap Medium 2 Banner Policy Update Needed Low 3 Bicycle Commute Policy Update Needed Low 3 Building Exteriors and Bridge Maintenance Update Needed Low 3 Complete Street Policy Update Needed Low 3 Compost Site Operations Update Needed Low 3 Dark Traffic Signal Policy Update Needed Low 3 Dedication Requirement Policy Update Needed Low 3 Emergency Response Update Needed Low 3 Environmental Preferred Purchasing Policy Update Needed Low 3 Impervious Material in Parkstrip Update Needed Low 3 Integrated Pest Management Policy Update Needed Low 3 Key Policy Update Needed Low 3 Maint. Of City Medians Update Needed Low 3 Monitoring Wells Policy Update Needed Low 3 Opening/Closing City Parks Update Needed Low 3 68 City-Wide Policy Inventory and Gap Analysis |9 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY Policy Name Type of Gap Associated Risk Recommended Priority Level Parkstrip Policy Update Needed Low 3 Public Works Confirmation Fee Update Needed Low 3 Record Keeping -Spraying Chem. Application Training Update Needed Low 3 Road Improvement Requirement Policy Update Needed Low 3 School Sites Update Needed Low 3 SOP Fleet 2000 Update Needed Low 3 Steel Plate Requirements for Excavations in the Public ROW Update Needed Low 3 Stormwater Re-Inspection Fee Update Needed Low 3 Street and Easement Vacations Update Needed Low 3 Street Name Policy Update Needed Low 3 Street Lighting Systems Update Needed Low 3 Street Signs & Markings Update Needed Low 3 Street Tree maintenance Update Needed Low 3 Weekend Work Furlough Program Update Needed Low 3 Work Zone Traffic Control Update Needed Low 3 69 70 CITY OF CUPERTINO Agenda Item 24-13479 Agenda Date: 10/31/2024 Agenda #: 6. Subject:ACTION ITEM Review and Accept the OPEB and Pension Trust Investment Policy Review and Accept the OPEB and Pension Trust Investment Policies Presenter: Jonathan Orozco, Finance Manager 5:15(10) CITY OF CUPERTINO Printed on 10/30/2024Page 1 of 1 powered by Legistar™71 AUDIT COMMITTEE STAFF REPORT Meeting: October 31, 2024 Subject Consider the Other Post-Employment Benefits (OPEB) and Pension Trust Investment Policies Recommended Action Review and accept the OPEB and Pension Trust Investment Policies Discussion Background In Fiscal Year (FY) 2009-10, the City established a Section 115 Trust to help fund its retiree health obligations, also known as OPEB. In FY 2017-18, the City also established a Section 115 Trust to pre-fund its pension obligations and reduce the potential impact of pension cost volatility on the City's operating budget. OPEB and Pension Trusts Section 115 Trust Overview A Section 115 Trust is a tax-exempt investment tool that allows local governments to pre- fund pension and retiree health costs. The benefits of a Section 115 Trust include the following:  Local control over assets: The City controls the contributions, withdrawals, investment strategy, and risk level of assets in the Trust.  Potential for higher investment returns than General Fund: Investment requirements that apply to the City's General Fund assets under Government Code 53601 are not applicable to Trust assets.  Pension rate stabilization: Assets can be transferred to CalPERS at the City 's discretion to pay for Normal Cost or Unfunded Accrued Liability (UAL) contributions and can be used to reduce or eliminate large fluctuations in the City's pension costs.  Diversification: Trust assets will be diversified from CalPERS investments. 72 2 OPEB Trust Overview In FY 2009-10, the City established a Section 115 Trust to help fund its retiree health obligations, also known as OPEB. Compared to a pay-as-you-go plan, the OPEB Trust allows the City to:  Grow assets to pay future OPEB benefits.  Earn higher returns than the General Fund.  Reduce its total cost for providing post-employment benefits.  Reduce its Net OPEB Liability. In July 2010, the City contributed $7.0 million in initial funding. With additional contributions of $12.3 million, total contributions to date are $19.3 million. As of June 30, 2024, the City's OPEB Trust had a market value of $38.0 million and had earned an annualized investment return of 6.71% gross of fees since inception. Time Period Annualized Investment Return 1 Year 13.85% 5 Year 6.54% Since Inception 6.71% 1-Year investment returns were impacted by financial market volatility due to heightened geopolitical risk, supply chain bottlenecks and persistent inflation, and the Federal Reserve’s pivot to a less accommodative monetary policy. As of the June 30, 2024 measurement date, using a 6.5% discount rate, the City’s OPEB plan had an accrued liability of $40.4 million and a market value of assets of $38.0 million, resulting in an unfunded accrued liability of $2.4 million and a funded ratio of 94.1%. Compared to June 30, 2023, the unfunded accrued liability continued to increase, and the funded ratio decreased, primarily due to changes in actuarial assumptions. June 30, 2022 June 30, 2023* June 30, 2024* Accrued Liability 29,871,000 35,290,000 40,389,000 Market Value of Assets 31,340,000 34,708,000 38,013,000 Unfunded Accrued Liability (1,469,000) 582,000 2,376,000 Funded Ratio 104.9% 98.4% 94.1% *Amounts provided from Actuarial Report, as opposed to PARS provided. Pension Trust Overview Since pension obligations are one of the City's largest financial obligations, the City has taken proactive steps to reduce the impacts of pension cost volatility. In March 2018, the City provided options to Council to address rising pension costs. In April 2018, the City presented a long-term pension funding strategy to the Fiscal Strategic Plan Committee. In May 2018, the City adopted a Section 115 Trust, also known as a Pension Rate Stabilization 73 3 Program (PRSP), to reduce pension rate volatility on the City's budget. The Pension Trust helps the City to:  Grow assets for future pension contributions.  Invest assets over appropriate time horizons.  Earn higher investment returns than the General Fund.  Reduce pension contribution volatility.  Diversify funds from CalPERS investments. As a fiscal sustainability measure, the City funds the Pension Trust using a more conservative discount rate of 6.25%. The City's pension funding goal is to accumulate sufficient funds in the Pension Trust to fund the difference between a 6.25% and a 7% discount rate and achieve a funded status of 80% by FY 2036-37, 20 years from the adoption of the Pension Trust. The City's projections indicated that it would need to accumulate over $42 million in the Pension Trust within 20 years to achieve its pension funding goal. As a result, the funding strategy proposed $8.0 million in initial funding, along with additional funding of $10.0 million over the first five years. To date, the City has contributed $16.0 million, including:  $8.0 million in FY 2018-19  $4.0 million in FY 2019-20  $2.0 million in FY 2020-21  $2.0 million in FY 2021-22 As of June 30, 2023, the City's Pension Trust had a market value of $21.7 million and had earned an annualized investment return of 7.16% gross of fees since inception. Time Period Annualized Investment Return 1 Year 5 Year 13.83% 7.28% Since Inception 5.62% 1-Year investment returns were impacted by financial market volatility due to heightened geopolitical risk, supply chain bottlenecks and persistent inflation, and the Federal Reserve’s pivot to a less accommodative monetary policy. OPEB and Pension Trust Investment Policies The Audit Committee is responsible for reviewing the OPEB and Pension Trust investment policies annually, appointing investment managers, and monitoring investment performance. The City Council is responsible for annually adopting the OPEB and Pension Trust investment policies. 74 4 It is not expected that the OPEB and Pension Trust investment policies will change frequently. Short-term changes in the financial markets should not require adjustments to the policies. The Audit Committee last reviewed the policies on October 23, 2023, with City Council adopting the policies on December 5, 2024. Public Agency Retirement Services (PARS) is the City’s Trust Administrator and US Bank is the City’s Investment Manager for the Pension and OPEB Trusts. The Investment Manager manages the investments per the investment policies. Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules. OPEB and Pension Trust Investment Objectives The OPEB Trust has a “Balanced” investment objective with a target rate of return of 6.50%, and the Pension Trust has a “Balanced” investment objective with a target rate of return of 6.25%. The “Balanced” investment objective is designed to provide a moderate amount of current income with moderate growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended for investors with a long-term time horizon. The strategic asset allocation ranges and tactical targets for this objective are listed below: Asset Class Range Target Fixed Income 20-40% 29% Equities 50-70% 63% Real Estate 0-15% 5% Commodities 0-10% 2% Cash 0-10% 1% The target rates of return are based on the long-term expected rate of return for assets in the trusts and the City's time horizon for the investments. With strong reserves and a fully funded OPEB plan, the City can maintain a long-term investment horizon with a “balanced” investment objective. There may be periods of substantial decline in investment value, and the portfolio should expect periodic volatility. However, a 6.56% return on investment is expected over the long-term, based on the current investment objective. More conservative investment objectives such as “moderate” and “moderate-conservative” would expect less volatility and declines in investment value; however, over the long term, they would also expect lower returns. Many agencies anticipate needing to access the funds in their respective trusts sooner and invest with more emphasis on preserving capital in the near term. 75 5 The OPEB Trust has a higher discount rate than the Pension Trust because OPEB investments are expected to have a longer time horizon. OPEB obligations are generally longer in duration, and the City expects to withdraw Pension Trust funds earlier to fund CalPERS contributions. Given that changes to the CalPERS discount rate have larger effects on the City's operating budget and are farther out of the City's control, it is important that the City be able to use the Trust to pay CalPERS contributions as needed. Sustainability Impact There is no sustainability impact. Fiscal Impact There is no direct fiscal impact at this time. _____________________________________ Prepared by: Jonathan Orozco, Finance Manager Reviewed by: Kristina Alfaro, Director of Administrative Services Tina Kapoor, Interim Assistant City Manager Approved for Submission by: Pamela Wu, City Manager Attachments: A – OPEB Trust Investment Policy B – Pension Trust Investment Policy 76 1 | Page Other Post- Employment Benefits (OPEB) Investment Policy Citywide Policy Manual Attachments: N/A Effective Date: November 19, 2024 December 5, 2023 Responsible Department: Administrative Services Related Policies & Notes: City Investment Policy, Pension Investment Policy Overview In response to the Government Accounting Standards Board (GASB) Statement No. 45, replaced by GASB Statement No. 74 and GASB Statement No. 75, new disclosure requirements for Other Post‐employment Benefit (OPEB) Plans, the City of Cupertino has adopted a Section 115 Trust and Plan that seeks to satisfy these liabilities for certain eligible employees Executive Summary Account Name: City of Cupertino OPEB Trust Account Number: 6746035000 Investment Authority: Full Investment Authority Current Assets: $40.7 33.6 million (September 2024 2023) Time Horizon: Long‐Term Target Rate of Return: 6.5% Communication Schedule: Meetings will be conducted at least quarterly U.S. Bank Portfolio Manager: Dennis Mullins Dennis.mullins@usbank.com 513‐304‐0398 Rick Rosenthal richard.rosenthal@usbank.com 213‐359‐7954 77 2 | Page U.S. Bank Relationship Manager: Ryan Maxey ryan.maxey@usbank.com 503‐464‐3789 Investment Objective: ‘Balanced’ This investment objective is designed to provide a moderate amount of current income with moderate growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended for investors with a long‐term time horizon. The strategic asset allocation ranges and tactical targets for this objective are listed below: Investment Guidelines Overview This document defines the investment policy, guidelines and performance objectives applicable to the assets of The City of Cupertino’s OPEB Trust. The goal of this Policy is to create an investment framework within which the assets can be actively yet prudently managed. The purpose of this document is threefold.  First, it will set forth an investment structure for managing the Portfolio assets. This structure is expected to produce an appropriate level of overall diversification and total investment return over the investment time horizon.  Second, it will serve as to encourage effective communications between the organization and parties involved with investment management decisions.  Third, these guidelines will provide a framework to measure ongoing investment performance. Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules, which state: “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of Asset Class Range Benchmark Target Fixed Income 20‐40% 29% Equities 50‐70% 63% Real Estate 0‐15% 5% Commodities 0‐10% 2% Cash 0‐10% 1% 78 3 | Page their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” All applicable laws, rules and regulations from various local, state, federal and international political entities that may impact the Portfolio are to be adhered to. Diversification Your Portfolio Manager is responsible for maintaining the balance between the various asset classes based on the investment objective’s strategic asset allocation. As a general policy, the Investment Manager will maintain reasonable diversification at all times by asset class, credit quality, issuer, sector, industry, and country. The following parameters shall be adhered to in managing the portfolio: Fixed Income Assets  The fixed income investments are to maintain intermediate‐term average weighted duration, between three‐seven years.  At the time of purchase, no single fixed income issuer shall exceed 2% of the total market value of the Portfolio, with the exception of U.S. Treasury or Agency obligations.  The direct high‐yield portion shall constitute no more than 10% of the total market value of the Portfolio.  Hedged fixed income positions shall constitute no more than 10% of the total market value of the Portfolio. Equity & Growth Assets  The domestic equity investments are expected to be diversified at all times by size, industry, sector, and style (Large Cap, Mid Cap, and Small Cap).  At the time of purchase, no individual equity security shall exceed 2% of the total market value of the Portfolio.  The international equity investments (including emerging markets) shall constitute no more than 20% of the total market value of the Portfolio  The real estate investments shall be captured through the use of diversified mutual funds or ETFs investing in REITs; and shall constitute no more than 15% of the total market value of the Portfolio.  The commodities investments shall be captured through the use of diversified mutual funds or ETFs; and shall constitute no more than 10% of the total market value of the Portfolio.  Hedged equity positions shall constitute no more than 10% of the total market value of the Portfolio Permitted Asset Classes and Security Types Fixed Income & Cash Equivalent Investments:  Domestic Certificates of Deposit (rated A‐1/P‐1 or better)  Domestic Commercial Paper (rated A‐1/P‐1 or better) 79 4 | Page  Floating Rate Notes  Money Market Mutual Funds  U.S. Treasury Bonds, Bills and Notes  U.S. Agency (and Instrumentality) Discount Notes, Notes, and Bonds  Treasury Inflation‐Protected Securities (TIPS)  Municipal Bonds and Notes  Corporate Bonds  Mortgage‐Backed Bonds (MBS)  Asset‐Backed Bonds (ABS)  High‐Yield Bonds (rated B‐/B3 or better)  Dollar denominated Foreign Bonds and Notes  Bond Mutual Funds Equity Investments:  Common & Preferred Stocks  American Depository Receipts (ADRs)  Domestic and International Equity Mutual Funds (Open and Closed)  Emerging Market Equity Funds or Exchange Traded Funds (ETFs) Alternative Investments:  Commodities Mutual Funds or Exchange Traded Notes (ETNs)  REIT Investment or Pooled Strategy or Fund of REITs  Registered Hedge Funds or Hedge Fund of Funds Prohibited Asset Classes and Transactions The Investment Manager is prohibited from purchasing or holding any of the following types of investments:  Partnerships unless investing in Master Limited Partnerships invested in a mutual fund and limited in scope and allocation of Portfolio based on asset class limitations of table above  Letter stock and other unregistered securities; physical commodities or other commodity contracts; and short sales or margin transactions  Investments in the equity securities of any company with a record of less than three years continuous operation, including the operation of any predecessor  Investments for the purpose of exercising control of management  Direct or indirect exposure to cryptocurrencies  Leveraged securities, other than registered Hedged Equity and Hedged Fixed Income positions Duties and Responsibilities 1) CITY OF CUPERTINO AUDIT COMMITTEE a) Establish, approve, and maintain investment objectives, guidelines, and policies (including this Policy). 80 5 | Page b) Appoint Investment Managers who can be reasonably expected to adhere to the investment guidelines and meet the investment objectives as established. c) Monitor the investment performance of the Portfolio and compare actual investment performance relative to an appropriate benchmark index given the stated investment guidelines and objectives set forth in this Policy. d) Conduct a formal review of the Portfolio’s asset allocation, investment structure and performance annually or more frequently as the need arises. e) Periodically review the Portfolio performance against objectives. 2) CITY OF CUPERTINO CITY COUNCIL a) Adopt the Policy by resolution of the City Council on an annual basis. 3) PORTFOLIO MANAGER The Portfolio Manager will be responsible for carrying out the activities related to the Portfolio in accordance with the Policy including: a) Manage the day‐to‐day investment of Portfolio assets in accordance with the Policy guidelines and objectives included herein. b) Exercise full investment discretion and prudence in the selection and diversification of investments. c) Promptly bring to the attention of the City Treasurer or designee any investment that is subsequently downgraded and fails to meet the quality guidelines, along with a recommendation of retention or disposal. d) Provide on a quarterly basis the following investment reporting: (i) Year‐to‐date rate of return (ii) Annualized one, three, five, etc. rates of return e) Provide annually to the City’s Audit Committee a commentary and analysis of investment performance to include an evaluation of the current and future investment environment and potential impact of the investment environment on achievement of investment objectives. Investment Policy Statement Review The City’s Audit Committee will review and the Cupertino City Council will adopt this Investment Policy Statement at least annually to determine whether stated investment objectives are still relevant and the continued feasibility of achieving the same. It is not expected that the Policy will change frequently. In particular, short‐term changes in the financial markets should not require adjustments to the Policy. If at any time the Portfolio Manager finds the above guidelines too restrictive or possibly injurious to investment returns, they should communicate that information immediately to the City’s Audit Committee. 81 6 | Page Revisions: 6.5.2018, 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023 City Manager’s signature: _______________________________ Date: _______________________________ Director of Administrative Services’ signature: _______________________________ Date: _______________________________ 82 1 | Page Pension Trust Investment Policy Citywide Policy Manual Attachments: N/A Effective Date: November 19, 2024 December 5, 2023 Responsible Department: Administrative Services Related Policies & Notes: N/A Investment Policy Statement Overview The City has established a Section 115 Trust with PARS to assist in stabilizing the potential impact of pension cost volatility on the City’s operating budget. The City intends to use the Section 115 Trust to pre‐fund pension costs and proactively address the unfunded liability. The City’s goal is to have sufficient assets in the trust to increase the funded status to over 80% within 20 years, as well as fund the difference between a 7.0% and 6.25% discount rate. Executive Summary Account Name: City of Cupertino Pension Trust Account Number: 6746050100 Investment Authority: Full Investment Authority Current Assets: $23.0 18.5 Million (September 2024 2023) Time Horizon: Long‐Term Target Rate of Return: 6.25% Communication Schedule: Meetings will be conducted at least quarterly U.S. Bank Portfolio Manager: Rick Rosenthal richard.rosenthal@usbank.com 213‐359‐7954 U.S. Bank Relationship Manager: Ryan Maxey ryan.maxey@usbank.com 503‐464‐3789 83 2 | Page Investment Objective: ‘Balanced’ This investment objective is designed to provide a moderate amount of current income with moderate growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended for investors with a long‐term time horizon. The strategic asset allocation ranges and tactical targets for this objective are listed below: Investment Guidelines Overview This document defines the investment policy, guidelines and performance objectives applicable to the assets of The City of Cupertino’s Pension Trust. The goal of this Policy is to create an investment framework within which the assets can be actively yet prudently managed. The purpose of this document is threefold.  First, it will set forth an investment structure for managing the Portfolio assets. This structure is expected to produce an appropriate level of overall diversification and total investment return over the investment time horizon.  Second, it will serve as to encourage effective communications between the organization and parties involved with investment management decisions.  Third, these guidelines will provide a framework to measure ongoing investment performance. Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules, which state: “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” All applicable laws, rules and regulations from various local, state, federal and international political entities that may impact the Portfolio are to be adhered to. Asset Class Range Benchmark Target Fixed Income 20‐40% 29% Equities 50‐70% 63% Real Estate 0‐15% 5% Commodities 0‐10% 2% Cash 0‐10% 1% 84 3 | Page Diversification Your Portfolio Manager is responsible for maintaining the balance between the various asset classes based on the investment objective’s strategic asset allocation. As a general policy, the Investment Manager will maintain reasonable diversification at all times by asset class, credit quality, issuer, sector, industry, and country. The following parameters shall be adhered to in managing the portfolio: Fixed Income Assets  The fixed income investments are to maintain intermediate‐term average weighted duration, between three‐seven years.  At the time of purchase, no single fixed income issuer shall exceed 2% of the total market value of the Portfolio, with the exception of U.S. Treasury or Agency obligations.  The direct high‐yield portion shall constitute no more than 10% of the total market value of the Portfolio.  Hedged fixed income positions shall constitute no more than 10% of the total market value of the Portfolio Equity & Growth Assets  The domestic equity investments are expected to be diversified at all times by size, industry, sector, and style (Large Cap, Mid Cap, and Small Cap).  At the time of purchase, no individual equity security shall exceed 2% of the total market value of the Portfolio.  The international equity investments (including emerging markets) shall constitute no more than 20% of the total market value of the Portfolio  The real estate investments shall be captured through the use of diversified mutual funds or ETFs investing in REITs; and shall constitute no more than 15% of the total market value of the Portfolio.  The commodities investments shall be captured through the use of diversified mutual funds or ETFs; and shall constitute no more than 10% of the total market value of the Portfolio.  Hedged equity positions shall constitute no more than 10% of the total market value of the Portfolio Permitted Asset Classes and Security Types Fixed Income & Cash Equivalent Investments:  Domestic Certificates of Deposit (rated A‐1/P‐1 or better)  Domestic Commercial Paper (rated A‐1/P‐1 or better)  Floating Rate Notes  Money Market Mutual Funds  U.S. Treasury Bonds, Bills and Notes  U.S. Agency (and Instrumentality) Discount Notes, Notes, and Bonds  Treasury Inflation‐Protected Securities (TIPS)  Municipal Bonds and Notes 85 4 | Page  Corporate Bonds  Mortgage‐Backed Bonds (MBS)  Asset‐Backed Bonds (ABS)  High‐Yield Bonds (rated B‐/B3 or better)  Dollar denominated Foreign Bonds and Notes  Bond Mutual Funds Equity Investments:  Common & Preferred Stocks  American Depository Receipts (ADRs)  Domestic and International Equity Mutual Funds (Open and Closed)  Emerging Market Equity Funds or Exchange Traded Funds (ETFs) Alternative Investments:  Commodities Mutual Funds or Exchange Traded Notes (ETNs)  REIT Investment or Pooled Strategy or Fund of REITs  Registered Hedge Funds or Hedge Fund of Funds Prohibited Asset Classes and Transactions The Investment Manager is prohibited from purchasing or holding any of the following types of investments:  Partnerships unless investing in Master Limited Partnerships invested in a mutual fund and limited in scope and allocation of Portfolio based on asset class limitations of table above  Letter stock and other unregistered securities; physical commodities or other commodity contracts; and short sales or margin transactions  Investments in the equity securities of any company with a record of less than three years continuous operation, including the operation of any predecessor  Investments for the purpose of exercising control of management  Direct or indirect exposure to cryptocurrencies  Leveraged securities, other than registered Hedged Equity and Hedged Fixed Income positions Duties and Responsibilities 1) CITY OF CUPERTINO AUDIT COMMITTEE a) Establish, approve, and maintain investment objectives, guidelines, and policies (including this Policy). b) Appoint Investment Managers who can be reasonably expected to adhere to the investment guidelines and meet the investment objectives as established. c) Monitor the investment performance of the Portfolio and compare actual investment performance relative to an appropriate benchmark index given the stated investment guidelines and objectives set forth in this Policy. 86 5 | Page d) Conduct a formal review of the Portfolio’s asset allocation, investment structure and performance annually or more frequently as the need arises. e) Periodically review the Portfolio performance against objectives. 2) CITY OF CUPERTINO CITY COUNCIL a) Adopt the Policy by resolution of the City Council on an annual basis. 3) PORTFOLIO MANAGER The Portfolio Manager will be responsible for carrying out the activities related to the Portfolio in accordance with the Policy including: a) Manage the day‐to‐day investment of Portfolio assets in accordance with the Policy guidelines and objectives included herein. b) Exercise full investment discretion and prudence in the selection and diversification of investments. c) Promptly bring to the attention of the City Treasurer or designee any investment that is subsequently downgraded and fails to meet the quality guidelines, along with a recommendation of retention or disposal. d) Provide on a quarterly basis the following investment reporting: (i) Year‐to‐date rate of return (ii) Annualized one, three, five, etc. rates of return e) Provide annually to the City’s Audit Committee a commentary and analysis of investment performance to include an evaluation of the current and future investment environment and potential impact of the investment environment on achievement of investment objectives. Investment Policy Statement Review The City’s Audit Committee will review and the Cupertino City Council will adopt this Investment Policy Statement at least annually to determine whether stated investment objectives are still relevant and the continued feasibility of achieving the same. It is not expected that the Policy will change frequently. In particular, short‐term changes in the financial markets should not require adjustments to the Policy. If at any time the Portfolio Manager finds the above guidelines too restrictive or possibly injurious to investment returns, they should communicate that information immediately to the City’s Audit Committee. City Manager’s signature: _______________________________ Date: _______________________________ 87 6 | Page Revisions: 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023 Director of Administrative Services’ signature: _______________________________ Date: _______________________________ 88 CITY OF CUPERTINO Agenda Item 24-13478 Agenda Date: 10/31/2024 Agenda #: 7. Subject:INFORMATIONAL ITEM Receive the Treasurer's Investment Report for the Quarter Ending September 30, 2024 Receive the Treasurer's Investment Report for the Quarter Ending September 30, 2024 Presenter: Jonathan Orozco, Finance Manager and Chandler 5:25(15) CITY OF CUPERTINO Printed on 10/30/2024Page 1 of 1 powered by Legistar™89 AUDIT COMMITTEE STAFF REPORT Meeting: October 31, 2024 Subject Receive the Treasurer's Investment Report for the Quarter Ending September 30, 2024 Recommended Action Receive the Treasurer's Investment Report for the Quarter Ending September 30, 2024 Reasons for Recommendation Background On May 14, 2024, 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 shall be appointed Treasurer and also shall act as ex officio Assessor and shall assess and collect all City taxes save and except for those collected by State and County officers for the City. Lastly, the City's Municipal Code Section 2.88.100 Duties–Powers– Responsibilities lists one of the powers and functions of the Audit Committee is "to review the quarterly Treasurer's Investment report." Per the referenced code provisions, a Treasurer's Investment Report is made available to the City Council quarterly. Treasurer's Investment Report The report provides an update on the City's investment portfolio for the month ending Septemer 30, 2024. The report is as of October 25, 2024. 90 2 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 $272.1 million, a $2.8 million decrease from the prior quarter. Cash and Investments – General Ledger Balance Fund Type Quarter Ending June 30, 2024 Quarter Ending September 30, 2024 General Fund 173,568,057 167,314,722 Special Revenue 42,654,567 44,851,934 Debt Service 250 2,676,450 Capital Projects 36,410,445 34,009,666 Enterprise 10,400,929 11,118,808 Internal Service 11,857,266 12,129,322 Total $274,891,514 $272,100,903 91 3 The $272.1 million in cash and investments include $18.2 million in cash, $65.8 million in cash equivalents, $169.0 million in investments, and $19.1 million restricted for funding pension costs. Note: Beginning balances have been updated to account for any final adjustments made as part of the month-end close that could not be completed before the prior report’s preparation. These adjustments were necessary due to time constraints associated with both completing the month-end close process and generating the report. 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. 92 4 Cash and Investments – General Ledger Balance Quarter Ending June 30, 2024 Quarter Ending September 30, 2024 % of Portfolio Cash in banks and on hand Operating Checking (Wells Fargo) 22,457,990 18,172,695 7% Workers' Compensation Checking (Wells Fargo) 6,038 36,003 0% Payroll Checking (Wells Fargo) - - 0% Restricted for Bond Repayments1 (BNY Mellon) - - 0% Petty Cash and Change 2,950 2,650 0% Cash Equivalents Local Agency Investment Fund 65,000,052 65,759,754 24% Investments Investments (Chandler) 168,335,625 169,040,941 62% Restricted for Pension2 (PARS) 19,088,859 19,088,859 7% Total Cash and Investments3 $274,891,514 $272,100,903 100% 1 Cash held by fiscal agent for bond repayments 2 In accordance with GASB 67/68, the assets in the Section 115 Pension Trust are reported as restricted cash and investments in the General Fund. The assets can only be used to fund CalPERS costs. 3 Assets in the Section 115 OPEB Trust are excluded as the City cannot use these assets to fund its own operations. The assets are held in trust for retirees' post-employment health benefits. The table below shows the bank balances for the City's cash and investments. Bank and General Ledger balances differ due to timing. Bank balances do not include outstanding checks and deposits in transit. The General Ledger is updated quarterly with interest earnings and annually with the year-end investment market values. Cash and Investments – Bank Balance Quarter Ending June 30, 2024 Quarter Ending September 30, 2024 % of Portfolio Cash in banks and on hand Operating Checking (Wells Fargo) 23,579,447 21,319,079 8% Workers' Compensation Checking (Wells Fargo) 6,992 37,977 0% Payroll Checking (Wells Fargo) - - 0% Restricted for Bond Repayments1 (BNY Mellon) - - 0% Cash Equivalents Local Agency Investment Fund 65,000,052 65,759,754 23% Investments Investments (Chandler) 164,967,177 169,948,739 61% Restricted for Pension2 (PARS) 21,663,664 22,967,000 8% Total Cash and Investments3 $275,217,332 $280,032,549 100% 93 5 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. Wells Fargo Accounts The City, in collaboration with Chandler and Wells Fargo's relationship manager, explored various options to maximize investment opportunities for excess funds in the City operating account. Prioritizing safety and liquidity, it was ultimately decided that converting the operating checking account to a "Government Advantage Checking" account was the optimal solution. This account offers full FDIC insurance and an interest rate of 3% as of June 30, 2024. The interest rate is subject to change based on market conditions. Staff will continuously monitor the rate and evaluate whether to retain funds in the account or transfer them to alternative investment opportunities. 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 $65.8 million. The quarterly interest rate was 4.71%. Investment Portfolio In FY 2018-19, the City conducted a Request for Proposal (RFP) for investment management services and selected Chandler Asset Management. Under the City's Treasurer's direction, Chandler Asset Management manages the City's investment portfolio in accordance with the City's investment objectives. The City's investment objectives, in order of priority, are to provide:  Safety to ensure the preservation of capital in the overall portfolio  Sufficient liquidity for cash needs  A market rate of return consistent with the investment program The performance objective is to earn a total rate of return through a market cycle equal to or above the return on the benchmark index. Chandler Asset Management invests in high- quality fixed-income securities consistent with the City's Investment Policy and California Government Code to achieve the objective. The portfolio's market value was $169.1 million, compared to $164.2 million at the end of the previous quarter. The table below includes historical comparisons of the City's portfolio: 94 6 June 30, 2024 September 30, 2024 Market Value 164,177,564 169,065,101 Par Value 168,885,052 170,704,952 Book Value 168,646,769 169,511,721 Average Maturity 2.10 years 2.67 years Average Modified Duration 1.72 2.28 Average Purchase Yield 2.59% 3.17% Average Market Yield 4.75% 3.97% Average Quality1 AA+ 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 sell s 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 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: 95 7 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 $23.0 million, an increase of $1.3 million from the prior quarter due to investment gains. The Section 115 OPEB Trust had a balance of $40.4 million, an increase of $2.4 million from the prior quarter mainly due to investment gains. The quarterly investment return for OPEB Trust was 6.29% and Pension Trust was 6.11%. Analysis The City compares its portfolio to LAIF and one-year and two-year Treasury yields. Yield comparisons for the one-year Treasury, two-year Treasury, LAIF, and City average are presented below: In September, the one-year Treasury yield and two-year Treasury yield decreased with yields of 3.98% and 3.66%, respectively. The one-year Treasury yield decreased by 111 basis points, and the two-year Treasury yield decreased by 105 basis points from June 30, 2024. The yield of the City's investment portfolio was 3.97%, higher than the the two-year Treasury yield, but lower than the one-year Treasury yield and LAIF. 96 8 Cash Flow History Historical revenues, expenditures, and liquidity ratios are presented below: 97 9 As the City's portfolio becomes more or less liquid over time, the ratio of cash and cash equivalents to revenues and expenditures will increase or decrease, respectively. The portfolio's investment structure is complete, so the City anticipates the ratio of cash and cash equivalents to revenues and expenditures to continue to flatten out moving forward. While a formal liquidity level has not been established, significant and consistent fluctuations in the ratio may indicate that additional funds should be invested or, conversely, that investments should be liquidated. In recent years, sufficient liquidity levels for operating revenues and expenditures have approximated a ratio of 1.0. In March 2022, the City transferred $15.0 million from the operating account to the investment portfolio, which reduced the March 2022 liquidity ratios. Liquidity ratios have been higher in FY 2023-24 due to increased cash and investment balances as the City anticipated a decision from a California Department of Tax and Fee Administration (CDTFA) audit of a City taxpayer. In FY 2023-24, the City established a Sales Tax Repayment Reserve with a total allocation of $74.5 million to set aside disputed received sales tax revenue. With the additional June 2024 deposit and subsequent investments, the liquidity ratios will be in flux until the funds have been fully invested. As of September 30, 2024, the liquidity ratio was 3.37 and 3.03 for revenues and expenditures, respectively. The City will monitor inflows and outflows during FY 2024- 25 and bring recommendations for the City's investment portfolio as necessary and applicable. 98 10 As of September 30, 2024, the City had $87.1 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: 99 11 The purpose of this cash flow and liquidity forecast is to illustrate the timing of the City's revenues and expenditures throughout a fiscal year using historical trend data. The first quarter of the fiscal year experiences expenditures exceeding revenues since the City begins receiving its property tax distributions in November and April of the respective fiscal year. In January and April, the City receives additional property tax revenues due to the Vehicle License Fee (VLF) swap. In June, the City tends to experience higher 100 12 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 No sustainability impact. Fiscal Impact No fiscal impact. California Environmental Quality Act Not applicable. _____________________________________ Prepared by: __________________ Jonathan Orozco Finance Manager Reviewed by: __________________ Kristina Alfaro Director of Administrative Services and City Treasurer Approved for Submission by: __________________ Pamela Wu City Manager Attachments: A – Chandler Investment Report September 2024 B – Chandler Custodial Statement September 2024 101 13 C – PARS Pension and OPEB Account Statement September 2024 D – LAIF Account Statement September 2024 102 INVESTMENT REPORT City of Cupertino | As of September 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.103 TABLE OF CONTENTS City of Cupertino | Account #10659 | As of September 30, 2024 ECONOMIC UPDATE ACCOUNT PROFILE PORTFOLIO HOLDINGS TRANSACTIONS 1 104 ECONOMIC UPDATE 2 105    Recent economic data suggests positive but slower growth this year fueled by consumer spending.While the consumer has been resilient, declining savings rates,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.The labor market is showing signs of cooling,reflecting an improved balance between supply and demand for workers.Given the cumulative effects of restrictive monetary policy and tighter financial conditions,we believe the economy will gradually soften and the Fed will continue to lower rates at a measured pace through this year with the ability to move more aggressively should the employment data warrant. The Federal Open Market Committee (FOMC) delivered the first rate cut of the easing cycle at the September meeting. Although a reduction in the Fed Funds Rate was widely anticipated,the magnitude was somewhat of a surprise,as market participants were split between whether the FOMC would cut by 25 basis points or 50 basis points.Chair Jerome Powell reiterated previous statements acknowledging that monetary policy has shifted into a more balanced approach addressing price stability and full employment in tandem. The Fed released the quarterly Summary of Economic Projections (SEP)which now forecasts a substantially lower median Fed Funds Rate expectation among Fed Governors in 2025 due to lower inflation expectations and a higher projected unemployment rate.We believe the Fed will continue to lower rates at a measured pace through this year with the ability to move more aggressively should the employment data warrant. The US Treasury yield curve shifted lower in September following the 50 basis points rate cut by the FOMC mid-month. The 2-year Treasury yield fell 28 basis points to 3.64%,the 5-year Treasury dropped 15 basis points to 3.56%,and the 10-year Treasury yield declined 12 basis points to 3.78%.The 2-year and 10-year Treasury yield points on the curve began to normalize to +14 basis points at September month-end versus -2 basis points at August month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -47 basis points. The inversion between 3-month and 10-year Treasuries ended the month of September at -85 basis points. ECONOMIC UPDATE 3 106 -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 254,000 jobs in September,well above expectations of 150,000.The three-month moving average and six-month moving average payrolls continued to trend weaker to 186,000 and 167,000 respectively.The unemployment rate declined to 4.1%in September,and the labor participation rate remained at 62.7%,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 declined to 7.7%from 7.9%.Average hourly earnings rose 4.0%year-over-year in September.U.S.labor market data from September surprised to the upside,with strong job growth and a sharper-than-expected drop in unemployment, suggesting the economy may be more resilient than anticipated.The Federal Reserve’s view is 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 EMPLOYMENT 4 107 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 D epartment’s Job Openings and Labor Turnover Survey (JOLTS)increased to 8.04 million job openings in August from an upwardly revised 7.71 million in July.Job openings have increased to a ratio of 1.13 jobs for each unemployed individual.The quits rate, an indicator of job availability,declined to 1.9%from downwardly revised 2.0%in July. That is the lowest level since 2020.While the current level of job openings remains elevated from a historical perspective, the trend is decelerating. Source: US Department of Labor JOB OPENINGS & LABOR TURNOVER SURVEY 5 108 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 August, the Consumer Price Index (CPI)rose 0.2%month-over-month and 2.5%year-over-year,down from 2.9%in July,largely due to a drop in gasoline prices.The Core CPI,which excludes volatile food and energy components,rose more than expected in August by 0.3% month-over-month and 3.2%year-over-year.The Personal Consumption Expenditures (PCE)Index rose 0.1%from the previous month and 2.2%year-over-year in August. The Core PCE deflator (the Fed’s preferred gauge)increased 0.1%month-over-month and 2.7%over the past year,still above the Fed’s 2%inflation target.Much of the lingering inflation has been driven by shelter costs and demand for services, but recent data provide confirmation that inflation is moderating. Source: US Department of Labor Source: US Department of Commerce INFLATION 6 109 -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 Retail Sales g rew more than expected month-over-month in August at 0.1%after growth of 1.1%in July.On a year-over-year basis, Retail Sales grew 2.1%in August versus 2.9%in July.Control-group sales,which are used to calculate gross domestic product,rose 0.3%month- over-month in August after last month’s data was revised higher to an increase of 0.4%.E-commerce contributed the most to the increase.The Conference Board’s Consumer Confidence Index for September came in below expectations, contracting to 98.7 after an upward revision to 105.6 in August. The decline reflects recent softening in labor market conditions, and less optimism about the job market and income growth.While the consumer has been resilient,consumption has begun to moderate in the face of declining savings rates, growing credit card debt, higher delinquencies, and a moderating labor market. 0 20 40 60 80 100 120 140 160 In d e x L e v e l Consumer Confidence Recession Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09) CONSUMER 7 110 -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Leading Economic Indicators (LEI) Recession YO Y (% ) C h a n g e -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 Chicago Fed National Activity Index (CFNAI) Recession 3 M o n t h A v e r a g e The Conference B oard’s Leading Economic Index (LEI)remained in negative territory at -0.2%in August, improving from -0.6%in July. The index dropped 5.0%year-over-year.The improvement can be attributed to a decrease in the yield curve inversion,an increase in building permits,and stock market performance.The Chicago Fed National Activity Index (CFNAI)increased to 0.12 in August from a downwardly revised -0.42 in July,which was above consensus expectations. The three-month moving average fell to -0.17 in August from -0.13 in July, indicating below-trend growth expectations for the economy. Source: The Conference Board Source: Federal Reserve Bank of Chicago LEADING INDICATORS OF ECONOMIC ACTIVITY 8 111 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 surprised to the upside on a month-over-month basis in August,increasing 9.6%to 1.356 million units versus the previous decline of 6.9%the prior month.Starts were led by the single-family home sector.Total starts were up 3.9%year-over-year.The Freddie Mac average rate for a 30-year fixed mortgage edged down to 6.35%in August from 6.85%in July. According to the Case-Shiller 20-City Home Price Index, housing prices rose 5.9%year-over-year in July,decelerating from 6.5%reported in the previous month. Although the trend is gradually improving, 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 HOUSING 9 112 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 contracted at a slower rate of 47.2 in September compared to 47.5 in August.Demand remains subdued and companies are continuing to reduce head counts through layoffs,attrition and hiring freezes.The ISM Services Index increased to 54.9 in September,increasing from 51.7 in August, due stronger production and new orders.A reading over 50 indicates expansion, while a reading under 50 indicates contraction. Source: Institute for Supply Management SURVEY BASED MEASURES 10 113 Components of GDP 9/23 12/23 3/24 6/24 1.7% 2.3% 1.3% 1.9% 1.8% 0.2% 0.6% 1.5% -0.1% 0.1% -0.6% -0.9% 0.3% 0.0% 0.0% 0.3% 0.6% 0.6% 0.3% 0.3% 4.4% 3.2% 1.6% 3.0% 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,second quarter GDP increased at an annualized rate of 3.0%,unchanged from the prior estimate.Growth continues to be powered by personal consumption expenditures.Gross fixed investment, government consumption expenditures, and inventories also had positive contributions,with a negative offset by net exports.The consensus projection calls for 2.0%growth in the third quarter and 2.6% growth for the full year 2024. GROSS DOMESTIC PRODUCT (GDP) 11 114 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 The Federal Open Market Committee (FOMC) delivered the first rate cut of the easing cycle at the September meeting. Although a reduction in the Fed Funds Rate was widely anticipated, the magnitude was somewhat of a surprise, as market participants were split between whether the FOMC would cut by 25 basis points or 50 basis points. Chair Jerome Powell reiterated previous statements acknowledging that monetary policy has shifted into a more balanced approach addressing price stability and full employment in tandem. The Fed released the quarterly Summary of Economic Projections (SEP) which now forecasts a substantially lower median Fed Funds Rate expectation among Fed Governors in 2025 to 3.1 – 3.6%. The Fed continues to reduce its holdings of U.S. Treasury securities and agency mortgage-backed securities as per its predefined schedule of $25 billion and $35 billion per month. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by approximately $1.8T to approximately $7.1T. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Effective Federal Funds Rate Recession Yi e l d ( % ) FEDERAL RESERVE 12 115 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 Sep-24 Jun-24 Sep-23 Yi e l d ( % ) At the end of September,the 2-year Treasury yield was 140 basis points lower,and the 10-Year Treasury yield was 79 basis points lower, year-over-year.The 2-year and 10-year Treasury yield points on the curve began to normalize to +14 basis points at September month-end versus -2 basis points at August month-end. The yield curve inversion which began in July 2022 was historically long.The average historical spread (since 2003)is about +110 basis points. The inversion between 3-month and 10-year Treasuries tightened to -85 basis points in September from -121 basis points in August. BOND YIELDS 13 116 ACCOUNT PROFILE 14 117 OBJECTIVES City of Cupertino | As of September 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. 15 118 STATEMENT OF COMPLIANCE City of Cupertino | Account #10659 | As of September 30, 2024 Rules Name Limit Actual Compliance Status Notes AGENCY MORTGAGE SECURITIES (CMOS) Max % (MV)100.0 9.9 Compliant Max % Issuer (MV; Agencies & Agency CMOs)25.0 5.4 Compliant Max Maturity (Years)5.0 4.9 Compliant ASSET-BACKED SECURITIES (ABS) Max % (MV; Non Agency ABS & MBS)20.0 10.1 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 16 119 STATEMENT OF COMPLIANCE City of Cupertino | Account #10659 | As of September 30, 2024 Rules Name Limit Actual Compliance Status Notes Min Rating (A-1 by 1 or A- by 1)0.0 0.0 Compliant CORPORATE MEDIUM TERM NOTES Max % (MV)30.0 26.5 Compliant Max % Issuer (MV)5.0 1.8 Compliant Max Maturity (Years)5 4 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 13.2 Compliant Max % Issuer (MV; Agencies & Agency CMOs)25.0 5.4 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 0.2 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) 17 120 STATEMENT OF COMPLIANCE City of Cupertino | Account #10659 | As of September 30, 2024 Rules Name Limit Actual Compliance Status Notes Max % (MV)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5 0.0 Compliant Min Rating (A- by 1)0.0 0.0 Compliant MUNICIPAL SECURITIES (CA, OTHER STATES) Max % (MV)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5 0.0 Compliant Min Rating (A- by 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 35.9 Compliant Max Maturity (Years)5 4 Compliant 18 121 PORTFOLIO SUMMARY Sector Allocation Performance Review Total Rate of Return 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS Since Inception (02/01/19) City of Cupertino 0.81%3.04%4.67%7.38%5.18%1.09%1.63%--1.96% Benchmark Return*0.80%2.86%4.14%6.74%4.73%0.75%1.27%--1.73% City of Cupertino | Account #10659 | As of September 30, 2024 Portfolio Characteristics Account Summary Maturity Distribution Top Issuers Credit Quality Average Modified Duration 2.28 Average Coupon 2.95% Average Purchase YTM 3.17% Average Market YTM 3.97% Average Quality AA Average Final Maturity 2.67 Average Life 2.35 United States FHLMC FNMA 5.37% Farm Credit System 3.16% Morgan Stanley 1.79% JPMorgan Chase & Co.1.79% American Express Credit Master Trust 1.71% UnitedHealth Group Incorporated 1.71% *Periods over 1 year are annualized. Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index Secondary Benchmark: *See Footnote Beg. Values as of 06/30/2024 End Values as of 09/30/2024 Market Value 164,177,564.58 169,065,101.73 Accrued Interest 789,612.72 883,637.19 Total Market Value 164,967,177.31 169,948,738.92 Income Earned 226,746.67 586,104.90 Cont/WD 8,639,529.99 0.00 Par 168,885,052.00 170,704,952.15 Book Value 168,646,769.08 169,511,721.72 Cost Value 168,445,525.33 169,150,841.25 19 122 PORTFOLIO CHARACTERISTICS City of Cupertino | Account #10659 | As of September 30, 2024 Benchmark*9/30/2024 Portfolio 6/30/2024 Portfolio Average Maturity (yrs)1.84 2.67 2.01 Average Modified Duration 1.76 2.28 1.72 Average Purchase Yield 3.17%2.59% Average Market Yield 3.71%3.97%4.75% Average Quality**AA+AA AA+ Total Market Value 169,948,739 164,967,177 *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.20 123 SECTOR DISTRIBUTION City of Cupertino | Account #10659 | As of September 30, 2024 Sector as a Percentage of Market Value Sector 09/30/2024 06/30/2024 US Treasury 35.92%34.03% Corporate 26.54%26.18% Agency 13.20%15.28% ABS 10.10%10.92% Agency CMBS 9.86%3.46% Supras 4.19%4.22% Money Mkt Fd 0.18%0.12% Cash 0.00%5.34% Muni Bonds --0.46% 21 124 DURATION ALLOCATION City of Cupertino | Account #10659 | As of September 30, 2024 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+ 09/30/2024 0.4%6.0%14.1%20.6%29.8%14.3%14.8%0.0%0.0% 22 125 ISSUERS City of Cupertino | Account #10659 | As of September 30, 2024 Issuer Investment Type % Portfolio United States US Treasury 35.92% FHLMC Agency CMBS 9.86% FNMA Agency 5.37% FHLMC Agency 3.53% Farm Credit System Agency 3.16% Morgan Stanley Corporate 1.79% JPMorgan Chase & Co.Corporate 1.79% American Express Credit Master Trust ABS 1.71% UnitedHealth Group Incorporated Corporate 1.71% The Home Depot, Inc.Corporate 1.55% Guardian Life Global Funding Corporate 1.51% International Finance Corporation Supras 1.43% Inter-American Development Bank Supras 1.39% International Bank for Recon and Dev Supras 1.37% John Deere Owner Trust ABS 1.33% Cisco Systems, Inc.Corporate 1.21% Deere & Company Corporate 1.21% Massachusetts Mutual Life Insurance Corporate 1.17% Federal Home Loan Banks Agency 1.14% Honda Auto Receivables Owner Trust ABS 1.08% State Street Corporation Corporate 1.07% Amazon.com, Inc.Corporate 1.06% GM Financial Securitized Term ABS 1.06% Chase Issuance Trust ABS 1.01% Bank of America Credit Card Trust ABS 0.99% Berkshire Hathaway Inc.Corporate 0.92% PepsiCo, Inc.Corporate 0.91% Prologis, Inc.Corporate 0.89% The Progressive Corporation Corporate 0.88% Bank of America Corporation Corporate 0.88% 23 126 ISSUERS City of Cupertino | Account #10659 | As of September 30, 2024 Issuer Investment Type % Portfolio Realty Income Corporation Corporate 0.85% Toyota Auto Receivables Owner Trust ABS 0.85% The Toronto-Dominion Bank Corporate 0.81% Toyota Motor Corporation Corporate 0.78% MERCEDES-BENZ AUTO RECEIVABLES TRUST ABS 0.67% Metropolitan Life Global Funding I Corporate 0.63% New York Life Insurance Company Corporate 0.61% Caterpillar Inc.Corporate 0.61% Mastercard Incorporated Corporate 0.58% BMW Vehicle Owner Trust ABS 0.57% Meta Platforms, Inc.Corporate 0.55% The Charles Schwab Corporation Corporate 0.55% Chubb Limited Corporate 0.52% Northwestern Mutual Global Funding Corporate 0.48% Hyundai Auto Receivables Trust ABS 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 0.15% WC MMF Sweep Money Mkt Fd 0.03% Cash Cash 0.00% TOTAL 100.00% 24 127 QUALITY DISTRIBUTION Rating 09/30/2024 06/30/2024 AAA 11.5%16.1% AA 66.6%62.9% A 17.8%16.6% NR 4.1%4.4% Rating 09/30/2024 06/30/2024 AAA 69.9%70.6% AA 7.8%6.9% A 17.7%17.7% NR 4.6%4.9% Rating 09/30/2024 06/30/2024 AAA 15.6%19.6% AA 63.0%62.8% A 9.1%8.1% NR 12.3%9.5% City of Cupertino | Account #10659 | As of September 30, 2024 S&P Rating Moody’s Rating Fitch Rating 25 128 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+ Portfolio 0.4%6.0%14.1%20.6%29.8%14.3%14.8%0.0%0.0% ICE BofA 1-3 Year US Treasury & Agency Index 0.1%0.1%3.6%58.6%37.6%0.0%0.0%0.0%0.0% DURATION DISTRIBUTION City of Cupertino | Account #10659 | As of September 30, 2024 Portfolio Compared to the Benchmark 26 129 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception TOTAL RATE OF RETURN City of Cupertino 3.04%7.38%5.18%1.09%1.63%1.96% Benchmark 2.86%6.74%4.73%0.75%1.27%1.73% *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 September 30, 2024 Total Rate of Return : Inception | 02/01/2019 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 12 months 2 years 3 years 5 years 10 years Since Inception City of Cupertino ICE BofA 1-3 Yr US Treasury & Agency Index 27 130 HISTORICAL AVERAGE PURCHASE YIELD City of Cupertino | Account #10659 | As of September 30, 2024 Purchase Yield as of 09/30/24 = 3.17% 28 131 PORTFOLIO HOLDINGS 29 132 HOLDINGS REPORT City of Cupertino | Account #10659 | As of September 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 43815GAC3 HAROT 2021-4 A3 0.88 01/21/2026 124,921.35 11/16/2021 0.89% 124,895.02 124,913.93 98.70 5.24% 123,294.88 30.54 0.07% (1,619.05) Aaa/NA AAA 1.31 0.30 47789QAC4 JDOT 2021-B A3 0.52 123,022.51 07/13/2021 123,011.54 98.83 121,581.32 0.07%Aaa/NA 1.46 03/16/2026 0.52%123,019.51 4.69%28.43 (1,438.19)AAA 0.28 89238JAC9 TAOT 2021-D A3 0.71 123,747.06 11/09/2021 123,744.42 98.81 122,276.71 0.07%NA/AAA 1.54 04/15/2026 0.71%123,746.25 4.64%39.05 (1,469.55)AAA 0.30 44935FAD6 HART 2021-C A3 0.74 312,769.81 --304,861.59 99.08 309,889.45 0.18%NA/AAA 1.62 05/15/2026 2.17%310,022.06 5.23%102.87 (132.61)AAA 0.20 43815BAC4 HAROT 2022-1 A3 1.88 340,002.36 02/15/2022 339,951.22 98.81 335,949.09 0.20%Aaa/AAA 1.62 05/15/2026 1.89%339,984.30 4.89%284.09 (4,035.21)NA 0.39 05602RAD3 BMWOT 2022-A A3 3.21 247,751.54 05/10/2022 247,738.66 99.33 246,087.22 0.15%Aaa/AAA 1.90 08/25/2026 3.23%247,746.18 4.75%132.55 (1,658.97)NA 0.44 47787JAC2 JDOT 2022 A3 0.36 191,836.37 03/10/2022 191,793.94 98.85 189,630.01 0.11%Aaa/NA 1.96 09/15/2026 2.34%191,819.08 4.69%197.80 (2,189.07)AAA 0.49 362554AC1 GMCAR 2021-4 A3 0.68 114,117.31 10/13/2021 114,114.40 98.52 112,431.34 0.07%Aaa/AAA 1.96 09/16/2026 0.68%114,116.31 4.96%32.33 (1,684.97)NA 0.34 448977AD0 HART 2022-A A3 2.22 476,406.35 03/09/2022 476,388.01 98.90 471,164.22 0.28%NA/AAA 2.04 10/15/2026 2.23%476,398.91 4.95%470.05 (5,234.69)AAA 0.40 380146AC4 GMCAR 2022-1 A3 1.26 117,840.82 01/11/2022 117,830.58 98.64 116,240.69 0.07%NA/AAA 2.13 11/16/2026 1.27%117,836.81 4.79%61.87 (1,596.11)AAA 0.38 362585AC5 GMCAR 2022-2 A3 3.1 234,645.75 04/05/2022 234,596.71 99.15 232,661.11 0.14%Aaa/AAA 2.38 02/16/2027 3.13%234,623.43 4.69%303.08 (1,962.32)NA 0.54 47800AAC4 JDOT 2022-B A3 3.74 490,018.70 07/12/2022 489,971.91 99.44 487,285.97 0.29%Aaa/NA 2.38 02/16/2027 3.77%489,995.15 4.62%814.52 (2,709.19)AAA 0.66 02589BAA8 AMXCA 2022-1 A 2.21 1,545,000.00 03/21/2022 1,524,359.77 98.89 1,527,872.13 0.90%Aaa/NA 0.46 03/17/2025 2.69%1,541,839.74 4.72%1,517.53 (13,967.61)AAA 0.44 44934FAD7 HALST 24B A3 5.41 610,000.00 05/14/2024 609,983.04 101.70 620,374.39 0.37%NA/AAA 2.63 05/17/2027 5.41%609,985.09 4.37%1,466.71 10,389.30 AAA 1.54 02582JJT8 AMXCA 2022-2 A 3.39 05/17/2027 1,375,000.00 05/17/2022 3.42% 1,374,695.85 1,374,908.77 99.28 4.61% 1,365,101.38 2,071.67 0.81% (9,807.39) NA/AAA AAA 0.62 0.60 30 133 HOLDINGS REPORT City of Cupertino | Account #10659 | As of September 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 47800BAC2 JDOT 2022-C A3 5.09 06/15/2027 943,295.68 10/12/2022 5.15% 943,222.48 943,253.71 100.44 4.58% 947,492.88 2,133.94 0.56% 4,239.16 Aaa/NA AAA 2.71 0.79 89231FAD2 TAOT 2023-C A3 5.16 04/17/2028 1,300,000.00 11/21/2023 5.40% 1,294,718.75 1,295,744.75 101.22 4.30% 1,315,838.94 2,981.33 0.78% 20,094.19 NA/AAA AAA 3.55 1.32 438123AC5 HAROT 2023-4 A3 5.67 06/21/2028 805,000.00 -- 5.64% 806,992.67 806,531.18 102.32 4.18% 823,704.42 1,267.88 0.49% 17,173.23 Aaa/NA AAA 3.73 1.47 47800RAD5 JDOT 2024 A3 4.96 11/15/2028 500,000.00 03/25/2024 5.13% 499,765.63 499,791.64 101.66 4.20% 508,311.40 1,102.22 0.30% 8,519.76 Aaa/NA AAA 4.13 2.04 05522RDH8 BACCT 2023-2 A 4.98 11/16/2026 850,000.00 01/24/2024 4.58% 858,798.83 856,660.94 102.02 4.02% 867,127.67 1,881.33 0.51% 10,466.73 Aaa/NA AAA 2.13 1.98 58769FAC9 MBART 2023-2 A3 5.95 11/15/2028 1,100,000.00 11/29/2023 5.18% 1,123,289.06 1,118,498.84 102.71 4.11% 1,129,853.23 2,908.89 0.67% 11,354.39 NA/AAA AAA 4.13 1.41 437930AC4 HONDO-242-A3 5.27 11/20/2028 535,000.00 05/14/2024 5.27% 534,935.00 534,940.26 102.19 4.16% 546,712.76 1,018.13 0.32% 11,772.50 NA/AAA AAA 4.14 1.86 36268GAD7 GMCAR 2024-1 A3 4.85 12/18/2028 1,310,000.00 -- 4.97% 1,307,922.66 1,308,127.04 101.27 4.18% 1,326,606.61 2,647.29 0.78% 18,479.56 Aaa/NA AAA 4.22 1.74 161571HV9 CHAIT 241 A 4.6 01/16/2029 1,690,000.00 01/24/2024 4.61% 1,689,742.61 1,689,777.27 101.28 4.05% 1,711,583.33 3,455.11 1.01% 21,806.06 NR/AAA AAA 4.30 2.13 096919AD7 BMWOT 2024-A A3 5.18 02/26/2029 695,000.00 06/04/2024 5.24% 694,894.43 694,901.30 102.19 4.05% 710,236.28 600.02 0.42% 15,334.98 Aaa/AAA NA 4.41 1.84 05522RDJ4 BACCT 2024-1 A 4.93 03/15/2029 785,000.00 06/06/2024 4.93% 784,955.96 784,958.75 102.32 4.03% 803,220.09 1,720.02 0.48% 18,261.34 Aaa/AAA NA 4.45 2.41 Total ABS 16,940,375.62 4.27% 16,937,174.73 16,954,141.20 100.80 4.37% 17,072,527.47 29,269.27 10.10% 118,386.28 Aaa/AAA AAA 2.90 1.28 AGENCY 3137EAEP0 FEDERAL HOME LOAN MORTGAGE CORP 1.5 02/12/2025 2,365,000.00 02/13/2020 1.52% 2,363,178.95 2,364,866.29 98.85 4.70% 2,337,804.20 4,828.54 1.38% (27,062.09) Aaa/AA+ AA+ 0.37 0.36 31 134 HOLDINGS REPORT City of Cupertino | Account #10659 | As of September 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 3135G03U5 FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.625 04/22/2025 1,860,000.00 04/22/2020 0.67% 1,856,168.40 1,859,573.57 97.98 4.33% 1,822,397.37 5,134.38 1.08% (37,176.20) Aaa/AA+ AA+ 0.56 0.54 3135G04Z3 FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.5 06/17/2025 2,500,000.00 -- 0.50% 2,499,227.30 2,499,920.26 97.43 4.20% 2,435,826.95 3,611.11 1.44% (64,093.31) Aaa/AA+ AA+ 0.71 0.70 3137EAEU9 FEDERAL HOME LOAN MORTGAGE CORP 0.375 07/21/2025 1,250,000.00 07/21/2020 0.48% 1,243,775.00 1,249,000.04 97.12 4.04% 1,214,060.43 911.46 0.72% (34,939.62) Aaa/AA+ AA+ 0.80 0.79 3135G05X7 FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.375 08/25/2025 2,500,000.00 -- 0.47% 2,487,983.75 2,497,776.91 96.87 3.95% 2,421,636.23 937.50 1.43% (76,140.68) Aaa/AA+ AA+ 0.90 0.88 3137EAEX3 FEDERAL HOME LOAN MORTGAGE CORP 0.375 09/23/2025 2,500,000.00 -- 0.46% 2,489,362.80 2,497,874.48 96.53 4.03% 2,413,334.58 208.33 1.43% (84,539.91) Aaa/AA+ AA+ 0.98 0.96 3135G06G3 FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.5 11/07/2025 2,500,000.00 -- 0.56% 2,492,700.00 2,498,388.00 96.23 4.04% 2,405,668.25 5,000.00 1.42% (92,719.75) Aaa/AA+ AA+ 1.10 1.07 3130B0TY5 FEDERAL HOME LOAN BANKS 4.75 04/09/2027 1,875,000.00 04/10/2024 4.85% 1,870,050.00 1,870,833.49 102.76 3.59% 1,926,841.37 42,057.29 1.14% 56,007.88 Aaa/AA+ AA+ 2.52 2.32 3133ERDS7 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.75 05/06/2027 2,400,000.00 06/20/2024 4.55% 2,412,552.00 2,411,331.50 102.78 3.62% 2,466,713.52 45,916.67 1.46% 55,382.02 Aaa/AA+ AA+ 2.60 2.39 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 2,791,894.37 102.87 3.64% 2,880,311.90 48,922.22 1.70% 88,417.52 Aaa/AA+ AA+ 3.13 2.85 Total Agency 22,550,000.00 1.99% 22,504,610.20 22,541,458.90 99.07 4.00% 22,324,594.78 157,527.50 13.20% (216,864.13) Aaa/AA+ AA+ 1.44 1.35 AGENCY CMBS 3137BLMZ8 FHMS K-049 A2 3.01 07/25/2025 989,730.34 07/01/2021 0.87% 1,068,599.48 1,004,528.47 98.79 4.51% 977,716.50 2,482.57 0.58% (26,811.97) Aaa/AA+ AAA 0.82 0.69 32 135 HOLDINGS REPORT City of Cupertino | Account #10659 | As of September 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 3137BLW95 FHMS K-050 A2 3.334 950,000.00 11/16/2021 1,018,132.81 98.96 940,162.28 0.56%Aaa/AA+0.90 08/25/2025 1.22%965,331.14 4.47%2,639.42 (25,168.87)AAA 0.74 3137BSP72 FHMS K-058 A2 2.653 650,000.00 11/12/2021 687,451.17 97.49 633,699.76 0.37%Aaa/AA+1.90 08/25/2026 1.36%664,583.72 3.99%1,437.04 (30,883.96)AAA 1.78 3137FBBX3 FHMS K-068 A2 3.244 1,000,000.00 09/28/2022 950,664.06 98.16 981,581.00 0.58%Aaa/AA+2.90 08/25/2027 4.36%971,064.46 3.88%2,703.33 10,516.54 AA+2.66 3137FKUP9 FHMS K-087 A2 3.771 2,000,000.00 07/01/2024 1,913,359.38 99.26 1,985,154.60 1.17%Aaa/AAA 4.24 12/25/2028 4.86%1,918,095.02 3.93%6,285.00 67,059.58 AA+3.76 3137FL6P4 FHMS K-089 A2 3.563 1,288,000.00 07/03/2024 1,228,178.44 98.44 1,267,848.21 0.75%Aaa/AA+4.32 01/25/2029 4.70%1,231,248.09 3.93%3,824.29 36,600.12 AA+3.90 3137H5YC5 FHMS K-748 A2 2.26 2,000,000.00 07/03/2024 1,801,718.75 93.32 1,866,316.00 1.10%Aaa/AA+4.32 01/25/2029 4.74%1,811,893.23 3.97%3,766.67 54,422.77 AAA 3.95 3137FKZZ2 FHMS K-088 A2 3.69 2,550,000.00 07/17/2024 2,465,830.08 98.93 2,522,817.51 1.49%Aaa/AA+4.32 01/25/2029 4.50%2,469,509.92 3.93%7,841.25 53,307.59 AA+3.86 3137FMCR1 FHMS K-093 A2 2.982 2,000,000.00 09/19/2024 1,929,531.25 96.00 1,919,926.60 1.14%Aaa/AA+4.65 05/25/2029 3.82%1,929,824.87 3.94%4,970.00 (9,898.27)AAA 4.11 3137FNAE0 FHMS K-095 A2 2.785 2,200,000.00 07/17/2024 2,039,382.82 95.01 2,090,317.02 1.24%Aaa/AA+4.73 06/25/2029 4.47%2,046,154.20 3.96%5,105.83 44,162.82 AAA 4.26 3137FPHK4 FHMS K-098 A2 2.425 1,600,000.00 09/03/2024 1,488,375.00 93.30 1,492,721.92 0.88%Aaa/AA+4.90 08/25/2029 4.00%1,489,934.01 3.96%3,233.33 2,787.91 AAA 4.44 Total Agency 16,591,223.24 96.86 16,678,261.39 9.86%Aaa/AA+3.88 CMBS 17,227,730.34 3.93%16,502,167.12 4.01%44,288.74 176,094.27 AAA 3.48 CASH CCYUSD Receivable 3,753.53 -- 0.00% 3,753.53 3,753.53 1.00 0.00% 3,753.53 0.00 0.00% 0.00 Aaa/AAA AAA 0.00 0.00 3,753.53 1.00 3,753.53 0.00%Aaa/AAA 0.00 Total Cash 3,753.53 0.00%3,753.53 0.00%0.00 0.00 AAA 0.00 CORPORATE 33 136 HOLDINGS REPORT City of Cupertino | Account #10659 | As of September 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 40139LBC6 GUARDIAN LIFE GLOBAL FUNDING 0.875 12/10/2025 1,400,000.00 -- 1.12% 1,385,860.00 1,395,972.62 96.03 4.33% 1,344,404.89 3,777.08 0.80% (51,567.72) Aa1/AA+ NA 1.19 1.16 66815L2A6 NORTHWESTERN MUTUAL GLOBAL FUNDING 0.8 01/14/2026 850,000.00 12/06/2021 1.46% 827,449.50 842,924.74 95.86 4.14% 814,813.62 1,454.44 0.48% (28,111.12) Aaa/AA+ AAA 1.29 1.25 023135BX3 AMAZON.COM INC 1.0 05/12/2026 1,875,000.00 05/10/2021 1.09% 1,866,900.00 1,872,391.68 95.61 3.83% 1,792,715.85 7,239.58 1.06% (79,675.83) A1/AA AA- 1.61 1.57 91324PEC2 UNITEDHEALTH GROUP INC 1.15 05/15/2026 1,035,000.00 -- 1.37% 1,025,051.35 1,031,334.81 95.60 3.97% 989,504.43 4,496.50 0.59% (41,830.38) A2/A+ A 1.62 1.57 89236TJK2 TOYOTA MOTOR CREDIT CORP 1.125 06/18/2026 1,385,000.00 06/15/2021 1.13% 1,384,390.60 1,384,791.42 95.34 3.96% 1,320,452.50 4,457.97 0.78% (64,338.91) A1/A+ A+ 1.71 1.66 57629WDE7 MASSMUTUAL GLOBAL FUNDING II 1.2 07/16/2026 1,000,000.00 08/19/2021 1.15% 1,002,230.00 1,000,814.43 95.03 4.11% 950,292.45 2,500.00 0.56% (50,521.98) Aa3/AA+ AA+ 1.79 1.74 58989V2D5 MET TOWER GLOBAL FUNDING 1.25 09/14/2026 770,000.00 09/07/2021 1.27% 769,291.60 769,723.39 94.65 4.13% 728,818.66 454.51 0.43% (40,904.73) Aa3/AA- AA- 1.96 1.89 931142ER0 WALMART INC 1.05 09/17/2026 350,000.00 09/08/2021 1.09% 349,338.50 349,740.62 94.97 3.74% 332,380.17 142.92 0.20% (17,360.44) Aa2/AA AA 1.96 1.91 61690U7W4 MORGAN STANLEY BANK NA 5.882 10/30/2026 1,000,000.00 -- 5.88% 1,000,082.50 1,000,056.58 103.60 4.06% 1,036,032.08 24,671.72 0.61% 35,975.50 Aa3/A+ AA- 2.08 1.83 59217GER6 METROPOLITAN LIFE GLOBAL FUNDING I 1.875 01/11/2027 1,115,000.00 01/03/2022 1.90% 1,113,728.90 1,114,420.84 95.34 4.04% 1,063,057.65 4,645.83 0.63% (51,363.19) Aa3/AA- AA- 2.28 2.19 17275RBQ4 CISCO SYSTEMS INC 4.8 02/26/2027 2,000,000.00 -- 4.71% 2,004,911.40 2,003,972.48 102.19 3.84% 2,043,769.18 9,333.33 1.21% 39,796.70 A1/AA- NA 2.41 2.17 808513BY0 CHARLES SCHWAB CORP 2.45 03/03/2027 960,000.00 03/01/2022 2.46% 959,729.90 959,866.78 96.04 4.19% 921,966.13 1,829.33 0.55% (37,900.65) A2/A- A 2.42 2.31 24422EXM6 JOHN DEERE CAPITAL CORP 4.85 03/05/2027 2,000,000.00 03/11/2024 4.77% 2,004,220.00 2,003,435.79 102.04 3.96% 2,040,873.84 7,005.56 1.21% 37,438.05 A1/A A+ 2.43 2.27 084664CZ2 BERKSHIRE HATHAWAY FINANCE CORP 2.3 03/15/2027 1,615,000.00 03/07/2022 2.30% 1,614,693.15 1,614,849.60 96.79 3.68% 1,563,169.11 1,650.89 0.92% (51,680.49) Aa2/AA A+ 2.45 2.35 857477CL5 STATE STREET CORP 4.993 03/18/2027 1,760,000.00 03/13/2024 4.99% 1,760,000.00 1,760,000.00 102.36 3.98% 1,801,610.71 3,173.33 1.07% 41,610.71 A1/A AA- 2.46 2.23 34 137 HOLDINGS REPORT City of Cupertino | Account #10659 | As of September 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 89115A2W1 TORONTO-DOMINION BANK 4.98 04/05/2027 1,340,000.00 03/26/2024 4.98% 1,340,000.00 1,340,000.00 102.04 4.12% 1,367,271.56 32,624.53 0.81% 27,271.56 A1/A AA- 2.51 2.29 57629W4S6 MASSMUTUAL GLOBAL FUNDING II 5.1 04/09/2027 1,000,000.00 06/20/2024 4.99% 1,002,630.00 1,002,374.48 102.62 4.00% 1,026,213.89 24,366.67 0.61% 23,839.41 Aa3/AA+ AA+ 2.52 2.30 665859AW4 NORTHERN TRUST CORP 4.0 05/10/2027 670,000.00 05/05/2022 4.03% 668,914.60 669,434.71 100.16 3.93% 671,090.11 10,496.67 0.40% 1,655.40 A2/A+ A+ 2.61 2.34 14913UAL4 CATERPILLAR FINANCIAL SERVICES CORP 5.0 05/14/2027 1,000,000.00 05/10/2024 5.04% 998,930.00 999,065.95 102.77 3.88% 1,027,717.99 19,027.78 0.61% 28,652.04 A2/A A+ 2.62 2.40 46647PEA0 JPMORGAN CHASE & CO 5.04 01/23/2028 1,500,000.00 03/11/2024 5.02% 1,500,780.00 1,500,629.37 101.67 4.78% 1,525,089.33 14,280.00 0.90% 24,459.96 A1/A- AA- 3.31 2.15 57636QAW4 MASTERCARD INC 4.875 03/09/2028 945,000.00 03/06/2023 4.90% 944,083.35 944,370.34 103.30 3.84% 976,207.74 2,815.31 0.58% 31,837.40 Aa3/A+ NA 3.44 3.07 61690U8E3 MORGAN STANLEY BANK NA 4.968 07/14/2028 1,950,000.00 07/17/2024 4.97% 1,950,000.00 1,950,000.00 102.03 4.58% 1,989,569.54 19,375.20 1.18% 39,569.54 Aa3/A+ AA- 3.79 2.56 74340XBL4 PROLOGIS LP 4.375 02/01/2029 1,500,000.00 07/18/2024 4.68% 1,481,235.00 1,482,072.52 100.87 4.15% 1,513,006.32 10,937.50 0.89% 30,933.80 A3/A WR 4.34 3.68 743315AV5 PROGRESSIVE CORP 4.0 03/01/2029 1,500,000.00 07/16/2024 4.72% 1,455,495.00 1,457,498.78 99.75 4.06% 1,496,178.48 5,000.00 0.88% 38,679.70 A2/A A 4.42 4.00 64952WFG3 NEW YORK LIFE GLOBAL FUNDING 5.0 06/06/2029 1,000,000.00 07/01/2024 5.12% 994,880.00 995,138.84 103.75 4.11% 1,037,467.61 15,972.22 0.61% 42,328.77 Aaa/AA+ AAA 4.68 4.09 437076BY7 HOME DEPOT INC 2.95 06/15/2029 1,663,000.00 09/17/2024 3.93% 1,593,203.89 1,593,728.07 95.48 4.01% 1,587,786.35 14,445.00 0.94% (5,941.71) A2/A A 4.71 4.30 437076DC3 HOME DEPOT INC 4.75 06/25/2029 1,000,000.00 07/01/2024 4.93% 992,260.00 992,647.21 103.07 4.03% 1,030,712.42 12,666.67 0.61% 38,065.21 A2/A A 4.73 4.10 756109CB8 REALTY INCOME CORP 4.0 07/15/2029 1,463,000.00 08/08/2024 4.69% 1,419,212.41 1,420,501.00 98.45 4.36% 1,440,270.76 12,354.22 0.85% 19,769.76 A3/A- NA 4.79 4.27 713448FX1 PEPSICO INC 4.5 07/17/2029 1,500,000.00 07/15/2024 4.53% 1,497,675.00 1,497,771.77 103.07 3.79% 1,545,987.18 13,875.00 0.91% 48,215.41 A1/A+ NA 4.79 4.19 46647PAV8 JPMORGAN CHASE & CO 4.203 07/23/2029 1,500,000.00 09/17/2024 4.27% 1,496,610.00 1,496,641.39 99.63 4.66% 1,494,418.86 11,908.50 0.88% (2,222.53) A1/A- AA- 4.81 3.46 35 138 HOLDINGS REPORT City of Cupertino | Account #10659 | As of September 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 06051GHM4 BANK OF AMERICA CORP 4.271 07/23/2029 1,500,000.00 09/17/2024 4.29% 1,498,710.00 1,498,721.94 99.74 4.70% 1,496,047.59 12,101.17 0.88% (2,674.35) A1/A- AA- 4.81 3.45 171239AL0 CHUBB INA HOLDINGS LLC 4.65 08/15/2029 865,000.00 08/12/2024 4.52% 869,887.39 869,759.42 102.32 4.12% 885,094.81 6,815.48 0.52% 15,335.39 A3/A A 4.87 4.24 30303M8S4 META PLATFORMS INC 4.3 08/15/2029 912,000.00 08/12/2024 4.33% 910,584.09 910,620.53 101.54 3.95% 926,059.12 5,664.53 0.55% 15,438.58 Aa3/AA- NA 4.87 4.27 91324PDS8 UNITEDHEALTH GROUP INC 2.875 08/15/2029 2,000,000.00 09/17/2024 3.94% 1,906,080.00 1,906,761.34 94.85 4.05% 1,897,026.86 7,347.22 1.12% (9,734.48) A2/A+ A 4.87 4.46 40139LBJ1 GUARDIAN LIFE GLOBAL FUNDING 4.179 09/26/2029 1,205,000.00 09/23/2024 4.18% 1,205,000.00 1,205,000.00 99.68 4.25% 1,201,099.05 699.40 0.71% (3,900.95) Aa1/AA+ NA 4.99 4.45 Total Corporate 45,128,000.00 3.84% 44,794,048.13 44,837,033.43 99.54 4.11% 44,878,176.85 329,606.08 26.54% 41,143.42 A1/A+ A+ 3.29 2.86 MONEY MARKET FUND 992995944 WC MMF SWEEP 51,482.48 -- 2.85% 51,482.48 51,482.48 1.00 2.85% 51,482.48 0.00 0.03% 0.00 NA/NA NA 0.00 0.00 VP4520004 WF ADV 100% TREAS MM FD- SVC CL #008 248,610.18 -- 0.01% 248,610.18 248,610.18 1.00 0.01% 248,610.18 0.00 0.15% 0.00 Aaa/AAAm NA 0.00 0.00 Total Money Market Fund 300,092.66 0.50% 300,092.66 300,092.66 1.00 0.50% 300,092.66 0.00 0.18% 0.00 Aaa/AAA NA 0.00 0.00 SUPRANATIONAL 45950KCT5 INTERNATIONAL FINANCE CORP 0.375 07/16/2025 2,500,000.00 05/27/2021 0.66% 2,471,150.00 2,494,482.87 97.03 4.23% 2,425,823.65 1,953.13 1.43% (68,659.22) Aaa/AAA NA 0.79 0.77 459058JL8 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM 0.5 10/28/2025 2,400,000.00 -- 0.60% 2,388,859.25 2,397,456.25 96.30 4.06% 2,311,097.35 5,100.00 1.37% (86,358.90) Aaa/AAA NA 1.08 1.05 4581X0DV7 INTER-AMERICAN DEVELOPMENT BANK 0.875 04/20/2026 2,460,000.00 04/13/2021 0.97% 2,448,733.20 2,456,507.66 95.52 3.87% 2,349,906.56 9,626.46 1.39% (106,601.10) Aaa/AAA NA 1.55 1.51 36 139 HOLDINGS REPORT City of Cupertino | Account #10659 | As of September 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration Total 7,308,742.45 96.29 7,086,827.56 4.19%Aaa/AAA 1.14 Supranational 7,360,000.00 0.74%7,348,446.78 4.05%16,679.58 (261,619.22)NA 1.11 US TREASURY 912828ZC7 UNITED STATES TREASURY 1.125 02/28/2025 1,495,000.00 03/18/2020 0.81% 1,518,067.38 1,496,914.84 98.65 4.45% 1,474,764.94 1,440.28 0.87% (22,149.90) Aaa/AA+ AA+ 0.41 0.41 91282CED9 UNITED STATES TREASURY 1.75 3,100,000.00 --3,057,617.20 98.85 3,064,428.71 1.81%Aaa/AA+0.45 03/15/2025 2.23%3,093,513.61 4.31%2,397.79 (29,084.91)AA+0.45 912828ZL7 UNITED STATES TREASURY 2,500,000.00 03/21/2022 2,360,839.85 97.76 2,443,925.78 1.45%Aaa/AA+0.58 0.375 04/30/2025 2.22%2,474,129.70 4.32%3,923.23 (30,203.92)AA+0.57 91282CAB7 UNITED STATES TREASURY 0.25 1,500,000.00 03/12/2021 1,469,765.63 96.90 1,453,511.72 0.86%Aaa/AA+0.83 07/31/2025 0.72%1,494,270.78 4.08%631.79 (40,759.07)AA+0.81 91282CAM3 UNITED STATES TREASURY 0.25 2,400,000.00 --2,366,140.63 96.39 2,313,375.00 1.37%Aaa/AA+1.00 09/30/2025 0.56%2,392,623.68 3.98%16.48 (79,248.68)AA+0.98 91282CAT8 UNITED STATES TREASURY 0.25 2,450,000.00 --2,422,492.19 96.13 2,355,158.20 1.39%Aaa/AA+1.08 10/31/2025 0.49%2,443,771.82 3.94%2,563.18 (88,613.62)AA+1.06 91282CAZ4 UNITED STATES TREASURY 2,250,000.00 03/26/2021 2,209,658.20 96.05 2,161,142.57 1.28%Aaa/AA+1.17 0.375 11/30/2025 0.76%2,239,955.91 3.88%2,835.55 (78,813.34)AA+1.14 91282CBH3 UNITED STATES TREASURY 2,500,000.00 05/27/2021 2,456,445.31 95.57 2,389,160.15 1.41%Aaa/AA+1.34 0.375 01/31/2026 0.75%2,487,588.57 3.82%1,579.48 (98,428.42)AA+1.30 91282CBW0 UNITED STATES TREASURY 0.75 2,500,000.00 05/27/2021 2,493,652.34 95.44 2,385,937.50 1.41%Aaa/AA+1.58 04/30/2026 0.80%2,497,966.49 3.75%7,846.47 (112,028.99)AA+1.54 91282CCZ2 UNITED STATES TREASURY 1,400,000.00 10/18/2021 1,379,054.68 94.73 1,326,171.87 0.78%Aaa/AA+2.00 0.875 09/30/2026 1.19%1,391,550.01 3.64%33.65 (65,378.14)AA+1.95 91282CDG3 UNITED STATES TREASURY 1,400,000.00 11/15/2021 1,391,468.75 94.98 1,329,726.57 0.79%Aaa/AA+2.08 1.125 10/31/2026 1.25%1,396,415.84 3.65%6,591.03 (66,689.27)AA+2.02 91282CJP7 UNITED STATES TREASURY 2,500,000.00 12/28/2023 2,525,097.66 101.59 2,539,648.45 1.50%Aaa/AA+2.21 4.375 12/15/2026 4.01%2,518,672.47 3.62%32,274.59 20,975.98 AA+2.06 91282CKJ9 UNITED STATES TREASURY 4.5 2,300,000.00 04/17/2024 2,283,109.38 102.18 2,350,042.96 1.39%Aaa/AA+2.54 04/15/2027 4.77%2,285,677.00 3.59%47,790.98 64,365.96 AA+2.34 37 140 HOLDINGS REPORT City of Cupertino | Account #10659 | As of September 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 3,188,213.70 102.26 3.59% 3,272,375.01 54,391.30 1.94% 84,161.31 Aaa/AA+ AA+ 2.62 2.42 91282CEW7 UNITED STATES TREASURY 3.25 06/30/2027 3,250,000.00 -- 3.18% 3,260,312.50 3,255,514.61 99.16 3.57% 3,222,578.13 26,693.27 1.91% (32,936.48) Aaa/AA+ AA+ 2.75 2.58 91282CFB2 UNITED STATES TREASURY 2.75 07/31/2027 400,000.00 08/22/2022 3.12% 393,218.75 396,114.79 97.77 3.58% 391,078.12 1,853.26 0.23% (5,036.67) Aaa/AA+ AA+ 2.83 2.68 91282CFH9 UNITED STATES TREASURY 3.125 08/31/2027 4,500,000.00 -- 3.28% 4,468,902.34 4,481,783.13 98.76 3.58% 4,444,277.36 12,042.47 2.63% (37,505.78) Aaa/AA+ AA+ 2.92 2.75 91282CFM8 UNITED STATES TREASURY 4.125 09/30/2027 3,450,000.00 -- 4.31% 3,421,152.34 3,432,435.15 101.61 3.56% 3,505,388.68 390.97 2.07% 72,953.53 Aaa/AA+ AA+ 3.00 2.80 91282CFZ9 UNITED STATES TREASURY 3.875 11/30/2027 850,000.00 12/05/2022 3.81% 852,656.25 851,685.69 100.88 3.58% 857,437.50 11,069.16 0.51% 5,751.81 Aaa/AA+ AA+ 3.17 2.92 91282CGC9 UNITED STATES TREASURY 3.875 12/31/2027 2,750,000.00 -- 3.67% 2,775,107.42 2,766,561.45 100.95 3.56% 2,776,210.94 26,930.20 1.64% 9,649.48 Aaa/AA+ AA+ 3.25 3.00 91282CGH8 UNITED STATES TREASURY 3.5 01/31/2028 3,000,000.00 02/07/2023 3.81% 2,957,929.69 2,971,837.42 99.77 3.57% 2,993,203.14 17,690.22 1.77% 21,365.72 Aaa/AA+ AA+ 3.34 3.10 91282CGP0 UNITED STATES TREASURY 4.0 02/29/2028 3,700,000.00 -- 4.01% 3,699,113.28 3,699,485.74 101.36 3.57% 3,750,296.88 12,674.03 2.22% 50,811.13 Aaa/AA+ AA+ 3.42 3.16 91282CKG5 UNITED STATES TREASURY 4.125 03/31/2029 2,300,000.00 04/17/2024 4.62% 2,249,867.19 2,254,470.09 102.27 3.57% 2,352,199.21 260.65 1.39% 97,729.12 Aaa/AA+ AA+ 4.50 4.08 91282CKX8 UNITED STATES TREASURY 4.25 06/30/2029 2,000,000.00 07/01/2024 4.41% 1,985,546.88 1,986,267.95 102.92 3.57% 2,058,437.50 21,480.98 1.22% 72,169.55 Aaa/AA+ AA+ 4.75 4.24 91282CLK5 UNITED STATES TREASURY 3.625 08/31/2029 3,500,000.00 09/11/2024 3.45% 3,527,480.47 3,527,207.64 100.30 3.56% 3,510,390.63 10,864.99 2.08% (16,817.01) Aaa/AA+ AA+ 4.92 4.45 Total US Treasury 61,195,000.00 2.89% 60,711,196.31 61,024,628.09 99.29 3.74% 60,720,867.48 306,266.02 35.92% (303,760.61) Aaa/AA+ AA+ 2.47 2.30 Total Portfolio 170,704,952.15 3.17% 169,150,841.25 169,511,721.72 98.94 3.97% 169,065,101.73 883,637.19 100.00% (446,619.99) Aa2/AA AA 2.67 2.28 Total Market Value + Accrued 169,948,738.92 38 141 TRANSACTIONS 39 142 TRANSACTION LEDGER City of Cupertino | Account #10659|07/01/2024 Through 09/30/2024| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss ACQUISITIONS Purchase 07/02/2024 437076DC3 1,000,000.00 HOME DEPOT INC 4.75 06/25/2029 99.226 4.93%(923.61)(993,183.61)0.00 Purchase 07/02/2024 64952WFG3 1,000,000.00 NEW YORK LIFE GLOBAL FUNDING 5.0 06/06/2029 99.488 5.12%(3,611.11)(998,491.11)0.00 Purchase 07/02/2024 91282CKX8 2,000,000.00 UNITED STATES TREASURY 4.25 06/30/2029 99.277 4.41%(461.96)(1,986,008.84)0.00 Purchase 07/05/2024 3137FKUP9 2,000,000.00 FHMS K-087 A2 3.771 12/25/2028 95.668 4.86%(838.00)(1,914,197.38)0.00 Purchase 07/09/2024 3137FL6P4 1,288,000.00 FHMS K-089 A2 3.563 01/25/2029 95.355 4.70%(1,019.81)(1,229,198.25)0.00 Purchase 07/09/2024 3137H5YC5 2,000,000.00 FHMS K-748 A2 2.26 01/25/2029 90.086 4.74%(1,004.44)(1,802,723.19)0.00 Purchase 07/17/2024 713448FX1 1,500,000.00 PEPSICO INC 4.5 07/17/2029 99.845 4.53%0.00 (1,497,675.00)0.00 Purchase 07/17/2024 743315AV5 1,500,000.00 PROGRESSIVE CORP 4.0 03/01/2029 97.033 4.72%(22,666.67)(1,478,161.67)0.00 Purchase 07/18/2024 3137FNAE0 2,200,000.00 FHMS K-095 A2 2.785 06/25/2029 92.699 4.47%(2,893.31)(2,042,276.13)0.00 Purchase 07/19/2024 74340XBL4 1,500,000.00 PROLOGIS LP 4.375 02/01/2029 98.749 4.68%(30,625.00)(1,511,860.00)0.00 Purchase 07/19/2024 61690U8E3 1,950,000.00 MORGAN STANLEY BANK NA 4.968 07/14/2028 4.97%0.00 (1,950,000.00)0.00 Purchase 07/22/2024 3137FKZZ2 2,550,000.00 FHMS K-088 A2 3.69 01/25/2029 96.699 4.50%(5,488.88)(2,471,318.96)0.00 Purchase 08/09/2024 756109CB8 1,463,000.00 REALTY INCOME CORP 4.0 07/15/2029 97.007 4.69%(3,901.33)(1,423,113.74)0.00 Purchase 08/15/2024 30303M8S4 667,000.00 META PLATFORMS INC 4.3 08/15/2029 99.852 4.33%(478.02)(666,490.86)0.00 40 143 TRANSACTION LEDGER City of Cupertino | Account #10659|07/01/2024 Through 09/30/2024| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss Purchase 08/15/2024 30303M8S4 245,000.00 META PLATFORMS INC 4.3 08/15/2029 99.825 4.34%(175.58)(244,746.83)0.00 Purchase 08/15/2024 171239AL0 604,000.00 CHUBB INA HOLDINGS LLC 4.65 08/15/2029 4.52%(1,170.25)(608,697.61)0.00 Purchase 08/15/2024 171239AL0 80,000.00 CHUBB INA HOLDINGS LLC 4.65 08/15/2029 4.52%(80,449.60)(155.00)(80,604.60)0.00 Purchase 08/15/2024 171239AL0 181,000.00 CHUBB INA HOLDINGS LLC 4.65 08/15/2029 4.53%(350.69)(182,261.12)0.00 Purchase 09/06/2024 3137FPHK4 1,600,000.00 FHMS K-098 A2 2.425 08/25/2029 93.023 4.00%(538.89)(1,488,913.89)0.00 Purchase 09/13/2024 91282CLK5 3,500,000.00 UNITED STATES TREASURY 3.625 08/31/2029 3.45%(4,556.28)(3,532,036.75)0.00 Purchase 09/18/2024 437076BY7 1,663,000.00 HOME DEPOT INC 2.95 06/15/2029 95.803 3.93%(12,673.45)(1,605,877.34)0.00 Purchase 09/18/2024 91324PDS8 2,000,000.00 UNITEDHEALTH GROUP INC 2.875 08/15/2029 95.304 3.94%(5,270.83)(1,911,350.83)0.00 Purchase 09/18/2024 46647PAV8 1,500,000.00 JPMORGAN CHASE & CO 4.203 07/23/2029 99.774 4.26%(9,631.88)(1,506,241.88)0.00 Purchase 09/18/2024 06051GHM4 1,500,000.00 BANK OF AMERICA CORP 4.271 07/23/2029 99.914 4.29%(9,787.71)(1,508,497.71)0.00 Purchase 09/24/2024 3137FMCR1 2,000,000.00 FHMS K-093 A2 2.982 05/25/2029 96.477 3.82%(3,810.33)(1,933,341.58)0.00 Purchase 09/26/2024 40139LBJ1 1,205,000.00 GUARDIAN LIFE GLOBAL FUNDING 4.179 09/26/2029 4.18%0.00 (1,205,000.00)0.00 Total Purchase (122,033.03)(37,772,268.88)0.00 41 144 TRANSACTION LEDGER City of Cupertino | Account #10659|07/01/2024 Through 09/30/2024| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss TOTAL ACQUISITIONS (122,033.03)(37,772,268.88)0.00 DISPOSITIONS Sale 07/17/2024 74153WCQ0 (885,000.00) PRICOA GLOBAL FUNDING I 1.15 12/06/2024 98.266 1.18%869,654.10 1,159.10 870,813.20 (15,227.58) Sale 07/17/2024 14913Q3B3 CATERPILLAR FINANCIAL SERVICES CORP 2.15 11/08/2024 98.960 1.93%4,532.92 1,093,092.92 (12,192.83) Sale 07/17/2024 89114TZL9 (700,000.00) TORONTO- DOMINION BANK 1.45 01/10/2025 98.074 2.78%686,518.00 197.36 686,715.36 (9,140.69) Sale 07/18/2024 3135G0W66 FEDERAL NATIONAL MORTGAGE ASSOCIATION 1.625 10/15/2024 99.100 1.76%8,290.89 1,965,515.89 (17,314.06) Sale 07/18/2024 6174468Q5 (650,000.00)MORGAN STANLEY 2.188 04/28/2026 97.473 3.63%633,574.50 3,160.44 636,734.94 (6,708.45) Sale 07/18/2024 66815L2J7 NORTHWESTERN MUTUAL GLOBAL FUNDING 4.0 07/01/2025 98.884 4.01%2,210.00 1,159,152.80 (12,930.89) Sale 07/18/2024 13063DRK6 (755,000.00)CALIFORNIA STATE 2.4 10/01/2024 99.427 1.92%750,673.85 5,385.67 756,059.52 (5,047.15) Sale 07/18/2024 912828YY0 UNITED STATES TREASURY 1.75 12/31/2024 98.461 1.97%1,797.55 2,069,477.24 (30,239.72) Sale 07/19/2024 3135G0X24 FEDERAL NATIONAL MORTGAGE ASSOCIATION 1.625 01/07/2025 98.331 1.69%701.46 1,274,091.80 (23,072.03) 42 145 TRANSACTION LEDGER City of Cupertino | Account #10659|07/01/2024 Through 09/30/2024| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss Sale 08/09/2024 06406RBC0 BANK OF NEW YORK MELLON CORP 3.35 04/25/2025 98.850 3.35%13,258.56 1,367,503.56 (15,709.63) Sale 08/13/2024 89236TJT3 TOYOTA MOTOR CREDIT CORP 1.45 01/13/2025 98.386 1.50%1,468.13 1,196,858.03 (19,382.82) Sale 08/14/2024 78016EZ59 ROYAL BANK OF CANADA 3.375 04/14/2025 98.871 3.39%11,812.50 1,049,958.00 (11,768.36) Sale 09/06/2024 3137BFE98 FHMS K-041 A2 3.171 10/25/2024 99.484 0.46%421,076.12 186.41 421,262.53 (2,860.14) Sale 09/12/2024 64952WEK5 NEW YORK LIFE GLOBAL FUNDING 1.45 01/14/2025 98.777 1.49%3,924.67 1,663,378.27 (20,341.12) Sale 09/12/2024 69371RR73 (885,000.00) PACCAR FINANCIAL CORP 2.85 04/07/2025 98.901 2.86%875,273.85 10,859.69 886,133.54 (9,682.69) Sale 09/18/2024 06367WB85 BANK OF MONTREAL 1.85 05/01/2025 98.274 0.86%8,729.94 1,227,327.54 (28,878.95) Sale 09/18/2024 06051GHY8 (600,000.00) BANK OF AMERICA CORP 2.015 02/13/2026 98.736 1.06%592,416.00 1,175.42 593,591.42 (9,869.67) Sale 09/18/2024 46647PBK1 (401,000.00) JPMORGAN CHASE & CO 2.083 04/22/2026 98.295 1.11%394,162.95 3,387.54 397,550.49 (9,099.73) Sale 09/18/2024 06051GJD2 (700,000.00) BANK OF AMERICA CORP 1.319 06/19/2026 97.364 1.27%681,548.00 2,282.60 683,830.60 (18,696.11) Sale 09/18/2024 74153WCM9 (904,000.00) PRICOA GLOBAL FUNDING I 0.8 09/01/2025 96.695 3.23%874,122.80 341.51 874,464.31 (9,975.84) Sale 09/18/2024 91324PEG3 (675,000.00) UNITEDHEALTH GROUP INC 3.7 05/15/2027 99.818 3.71%673,771.50 8,533.12 682,304.62 (1,394.38) 43 146 TRANSACTION LEDGER City of Cupertino | Account #10659|07/01/2024 Through 09/30/2024| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss Sale 09/18/2024 437076DB5 HOME DEPOT INC 4.875 06/25/2027 5.00%15,173.44 1,402,595.44 40,269.09 Sale 09/19/2024 912828ZC7 (5,000.00) UNITED STATES TREASURY 1.125 02/28/2025 98.531 0.81%4,926.56 2.95 4,929.51 (80.36) Sale 09/20/2024 06406HCQ0 BANK OF NEW YORK MELLON CORP 3.95 11/18/2025 99.628 3.21%996,280.00 13,386.11 1,009,666.11 (11,308.86) Sale 09/24/2024 3137BM7C4 (440,000.00)FHMS K-051 A2 3.308 09/25/2025 98.910 2.16%423,566.21 905.05 424,471.26 (8,114.12) Sale 09/24/2024 3137BN6G4 (570,000.00)FHMS K-053 A2 2.995 12/25/2025 98.516 2.20%561,539.06 1,090.68 562,629.74 (12,316.97) Sale 09/24/2024 06051GHT9 BANK OF AMERICA CORP 3.559 04/23/2027 98.901 4.30%17,167.23 1,154,528.73 6,933.02 Total Sale 141,120.94 26,114,637.37 TOTAL DISPOSITIONS 141,120.94 26,114,637.37 44 147 IMPORTANT DISCLOSURES City of Cupertino | Account #10659 | As of September 30, 2024 2024 Chandler Asset Management, Inc, An Independent Registered Investment Adviser. Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index. Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services. This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates. Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy. Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively. 45 148 BENCHMARK DISCLOSURES City of Cupertino | Account #10659 | As of September 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 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. 46 149 INVESTMENT AND INSURANCE PRODUCTS ARE: ·NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY FEDERAL GOVERNMENT AGENCY ·NOT A DEPOSIT, OBLIGATION OF, OR GUARANTEED BY ANY BANK OR BANKING AFFILIATE ·SUBJECT TO INVESTMENT RISKS AND MAY LOSE VALUE, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED PCS - SAN FRANCISCO CA 510 N VALLEY MILLS DRIVE, SUITE 400 WACO, TX 76710-6075 CITY OF CUPERTINO -CHANDLER ASSET MANAGEMENT ACCOUNT NUMBER MONTHLY STATEMENT SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT MANAGER: MICHAEL J WADE TELEPHONE NUMBER: 515-878-6110 PFGEDD INVESTMENT CONTACT: IMR/CONNOR GAFKJEN TELEPHONE NUMBER: ADMINISTRATOR: BELINDA CONWAY TELEPHONE NUMBER: 254-265-6137 27524 SE 150 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. 151 TABLE OF CONTENTS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ PAGE REPORT NAME NUMBER_________________ ASSET SUMMARY .................................................................................. 1 STATEMENT OF ASSETS AND LIABILITIES ............................................................ 2 CASH SUMMARY ................................................................................... 19 STATEMENT OF TRANSACTIONS ...................................................................... 20 152 PAGE 1 ASSET SUMMARY CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 300,092.66 300,092.66 0.18 0.00 12,802 4.27 3,753.53 BONDS AND NOTES 168,846,995.07 168,761,320.03 99.82 85,675.04- 4,970,008 2.94 883,775.71 ===================================================================================================================================== TOTAL INVESTMENTS 169,147,087.73 169,061,412.69 100.00 85,675.04- 4,982,810 2.95 887,529.24 TOTAL ACCRUALS 887,529.24 887,529.24 ===================================================================================================================================== TOTAL ACCRUALS AND INVESTMENTS 170,034,616.97 169,948,941.93 85,675.04- 4,982,810 2.95 887,529.24 153 PAGE 2 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH EQUIVALENTS______________________________________________________________________________________________________________________________________ 248,610.18 ALLSPRING 100% TREASURY 248,610.18 248,610.18 0.15 0.00 3,632.16 MONEY MARKET FUND - #008 1.0000 1.0000 51,482.48 PRINCIPAL PUBLIC DEPOSIT SWEEP 51,482.48 51,482.48 0.03 0.00 121.37 PROGRAM 1.0000 1.0000 ====================================================================================================================================== TOTAL CASH EQUIVALENTS 300,092.66 300,092.66 0.18 0.00 3,753.53 BOND & NOTES______________________________________________________________________________________________________________________________________ 1,875,000 AMAZON.COM INC 1,866,900.00 1,792,725.00 1.06 74,175.00- 7,239.58 DTD 05/12/21 1.000 05/12/2026 99.5680 95.6120 MOODY'S RATING A1 CUSIP 023135BX3 1,375,000 AMERICAN EXPRESS CREDIT ACCOUNT 1,374,695.85 1,365,100.00 0.81 9,595.85- 2,071.67 ASSET BCKD SEC SER 2022-2 CL A 99.9779 99.2800 DTD 05/24/2022 3.390% 05/17/2027 NON CALLABLE CUSIP 02582JJT8 1,545,000 AMERICAN EXPRESS CREDIT ACCOUNT 1,524,359.77 1,527,865.95 0.90 3,506.18 1,517.53 ASSET BCKD SEC SER 2022-1 CL A 98.6641 98.8910 DTD 03/18/2022 2.210% 03/15/2027 NON CALLABLE MOODY'S RATING AAA CUSIP 02589BAA8 1,500,000 BANK OF AMERICA CORP 1,498,710.00 1,496,055.00 0.88 2,655.00- 12,101.17 DTD 07/23/18 07/23/2029 99.9140 99.7370 MOODY'S RATING A1 CUSIP 06051GHM4 850,000 BANK OF AMERICA CREDIT CARD TRUST 858,798.83 867,127.50 0.51 8,328.67 1,881.33 ASSET BCKD SEC SER 2023-A2 CL A2 101.0352 102.0150 DTD 12/14/2023 4.980% 11/15/2028 NON CALLABLE MOODY'S RATING AAA CUSIP 05522RDH8 154 PAGE 3 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 785,000 BANK OF AMERICA CREDIT CARD TRUST 784,955.96 803,219.85 0.48 18,263.89 1,720.02 ASSET BCKD SEC SER 2024-A1 CL A 99.9944 102.3210 DTD 06/13/2024 4.930% 05/15/2029 NON CALLABLE MOODY'S RATING AAA CUSIP 05522RDJ4 1,615,000 BERKSHIRE HATHAWAY FIN 1,614,693.15 1,563,174.65 0.92 51,518.50- 1,650.89 DTD 03/15/2022 2.300% 03/15/2027 99.9810 96.7910 CALLABLE MOODY'S RATING AA2 CUSIP 084664CZ2 247,751.55 BMW VEHICLE OWNER TRUST 247,738.66 246,086.66 0.15 1,652.00-132.55 ASSET BCKD SEC SER 2022-A CL A3 99.9948 99.3280 DTD 05/18/2022 3.210% 08/25/2026 CALLABLE MOODY'S RATING AAA CUSIP 05602RAD3 695,000 BMW VEHICLE OWNER TRUST 694,894.43 710,234.40 0.42 15,339.97 600.02 ASSET BCKD SEC SER 2024-A CL A3 99.9848 102.1920 DTD 06/11/2024 5.180% 02/26/2029 CALLABLE MOODY'S RATING AAA CUSIP 096919AD7 1,000,000 CATERPILLAR FINL SERVICE 998,930.00 1,027,720.00 0.61 28,790.00 19,027.78 MEDIUM TERM NOTE 99.8930 102.7720 DTD 05/14/2024 5.000% 05/14/2027 NON CALLABLE MOODY'S RATING A2 CUSIP 14913UAL4 960,000 CHARLES SCHWAB CORP 959,729.90 921,964.80 0.55 37,765.10- 1,829.33 DTD 03/03/2022 2.450% 03/03/2027 99.9719 96.0380 CALLABLE MOODY'S RATING A2 CUSIP 808513BY0 155 PAGE 4 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,690,000 CHASE ISSUANCE TRUST 1,689,742.61 1,711,581.30 1.01 21,838.69 3,455.11 ASSET BCKD SEC SER 2024-A1I CL A 99.9848 101.2770 DTD 01/31/2024 4.600% 01/16/2029 CALLABLE CUSIP 161571HV9 865,000 CHUBB INA HOLDINGS LLC 869,887.39 885,093.95 0.52 15,206.56 6,815.48 DTD 07/31/2024 4.650% 08/15/2029 100.5650 102.3230 CALLABLE MOODY'S RATING A3 CUSIP 171239AL0 2,000,000 CISCO SYSTEMS INC 2,004,911.40 2,043,780.00 1.21 38,868.60 9,333.33 DTD 02/26/2024 4.800% 02/26/2027 100.2456 102.1890 CALLABLE MOODY'S RATING A1 CUSIP 17275RBQ4 2,365,000 FED HOME LN MTG CORP 2,363,178.95 2,337,802.50 1.38 25,376.45- 4,828.54 DTD 02/14/20 1.500 02/12/2025 99.9230 98.8500 MOODY'S RATING AAA CUSIP 3137EAEP0 1,250,000 FED HOME LN MTG CORP 1,243,775.00 1,214,062.50 0.72 29,712.50-911.46 SER USD 99.5020 97.1250 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 2,413,325.00 1.43 76,037.80-208.33 DTD 09/25/20 0.375 09/23/2025 99.5745 96.5330 MOODY'S RATING AAA CUSIP 3137EAEX3 1,288,000 FED HOME LN MTG CORP 1,228,178.44 1,267,842.80 0.75 39,664.36 3,824.29 SER K089 CL A2 *24 DAY DELAY*95.3555 98.4350 DTD 03/01/19 3.563 01/25/2029 CUSIP 3137FL6P4 156 PAGE 5 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,000,000 FED HOME LN MTG CORP 1,929,531.25 1,919,920.00 1.14 9,611.25- 4,970.00 SER K093 CL A2 *24 DAY DELAY*96.4766 95.9960 DTD 06/01/19 2.982 05/25/2029 CUSIP 3137FMCR1 1,860,000 FED NATL MTG ASSN 1,856,168.40 1,822,390.80 1.08 33,777.60- 5,134.38 DTD 04/24/20 0.625 04/22/2025 99.7940 97.9780 MOODY'S RATING AAA CUSIP 3135G03U5 2,500,000 FED NATL MTG ASSN 2,499,227.30 2,435,825.00 1.44 63,402.30- 3,611.11 DTD 06/19/20 0.500 06/17/2025 99.9691 97.4330 MOODY'S RATING AAA CUSIP 3135G04Z3 2,500,000 FED NATL MTG ASSN 2,487,983.75 2,421,625.00 1.43 66,358.75-937.50 DTD 08/27/20 0.375 08/25/2025 99.5194 96.8650 MOODY'S RATING AAA CUSIP 3135G05X7 2,500,000 FED NATL MTG ASSN 2,492,700.00 2,405,675.00 1.42 87,025.00- 5,000.00 DTD 11/12/20 0.500 11/07/2025 99.7080 96.2270 MOODY'S RATING AAA CUSIP 3135G06G3 2,800,000 FEDERAL FARM CREDIT BANK 2,789,612.00 2,880,304.00 1.70 90,692.00 48,922.22 DTD 11/15/2023 4.625% 11/15/2027 99.6290 102.8680 NON CALLABLE MOODY'S RATING AAA CUSIP 3133EPC60 2,400,000 FEDERAL FARM CREDIT BANK 2,412,552.00 2,466,720.00 1.46 54,168.00 45,916.67 DTD 05/06/2024 4.750% 05/06/2027 100.5230 102.7800 NON CALLABLE MOODY'S RATING AAA CUSIP 3133ERDS7 157 PAGE 6 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,875,000 FEDERAL HOME LOAN BANK 1,870,050.00 1,926,843.75 1.14 56,793.75 42,057.29 DTD 04/11/2024 4.750% 04/09/2027 99.7360 102.7650 NON CALLABLE MOODY'S RATING AAA CUSIP 3130B0TY5 2,000,000 FEDERAL HOME LOAN MORTGAGE CORP 1,801,718.75 1,866,320.00 1.10 64,601.25 3,766.67 CMO SER K748 CL A2 90.0860 93.3160 DTD 03/01/2022 2.260% 01/25/2029 NON CALLABLE CUSIP 3137H5YC5 989,730.34 FHLMC MULTIFAMILY STRUCTURED P 1,068,599.48 977,715.01 0.58 90,884.47- 2,482.57 SER K049 CL A2 *24 DAY DELAY*107.9688 98.7860 DTD 10/01/15 3.010 08/25/2025 CUSIP 3137BLMZ8 950,000 FHLMC MULTIFAMILY STRUCTURED P 1,018,132.81 940,158.00 0.56 77,974.81- 2,639.42 SER K050 CL A2 *24 DAY DELAY*107.1719 98.9640 DTD 11/01/15 08/25/2025 CUSIP 3137BLW95 650,000 FHLMC MULTIFAMILY STRUCTURED P 687,451.17 633,698.00 0.37 53,753.17- 1,437.04 SER K058 CL A2 *24 DAY DELAY*105.7617 97.4920 DTD 11/01/16 2.653 08/25/2026 CUSIP 3137BSP72 1,000,000 FHLMC MULTIFAMILY STRUCTURED P 950,664.06 981,580.00 0.58 30,915.94 2,703.33 SER K068 CL A2 *24 DAY DELAY*95.0664 98.1580 DTD 10/01/17 3.244 08/25/2027 MOODY'S RATING AAA CUSIP 3137FBBX3 2,000,000 FHLMC MULTIFAMILY STRUCTURED P 1,913,359.38 1,985,160.00 1.17 71,800.62 6,285.00 SER K087 CL A2 *24 DAY DELAY*95.6680 99.2580 DTD 01/01/19 3.771 12/25/2028 CUSIP 3137FKUP9 158 PAGE 7 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,550,000 FHLMC MULTIFAMILY STRUCTURED P 2,465,830.08 2,522,817.00 1.49 56,986.92 7,841.25 SER K088 CL A2 *24 DAY DELAY*96.6992 98.9340 DTD 03/01/19 3.690 01/25/2029 MOODY'S RATING AAA CUSIP 3137FKZZ2 2,200,000 FHLMC MULTIFAMILY STRUCTURED P 2,039,382.82 2,090,308.00 1.24 50,925.18 5,105.83 SER K095 CL A2 *24 DAY DELAY*92.6992 95.0140 DTD 08/01/19 2.785 06/25/2029 CUSIP 3137FNAE0 1,600,000 FHLMC MULTIFAMILY STRUCTURED P 1,488,375.00 1,492,720.00 0.88 4,345.00 3,233.33 SER K098 CL A2 *24 DAY DELAY*93.0235 93.2950 DTD 10/01/19 2.425 08/25/2029 CUSIP 3137FPHK4 114,117.32 GM FINANCIAL SECURITIZED TERM 114,114.40 112,431.81 0.07 1,682.59-32.33 SER 2021-4 CL A3 *0 DAY DELAY*99.9975 98.5230 DTD 10/21/21 0.680 09/16/2026 MOODY'S RATING AAA CUSIP 362554AC1 234,645.76 GM FINANCIAL SECURITIZED TERM 234,596.72 232,660.66 0.14 1,936.06-303.08 ASSET BCKD SEC SER 2022-2 CL A3 99.9791 99.1540 DTD 04/13/2022 3.100% 02/16/2027 CALLABLE MOODY'S RATING AAA CUSIP 362585AC5 1,310,000 GM FINANCIAL SECURITIZED TERM 1,307,922.66 1,326,610.80 0.78 18,688.14 2,647.29 ASSET BCKD SEC SER 2024-1 CL A3 99.8414 101.2680 DTD 01/17/2024 4.850% 12/18/2028 CALLABLE MOODY'S RATING AAA CUSIP 36268GAD7 117,840.83 GM FINANCIAL SECURITIZED TERM 117,830.59 116,240.55 0.07 1,590.04-61.87 SER 2022-1 CL A3 *0 DAY DELAY*99.9913 98.6420 DTD 01/19/22 1.260 11/16/2026 CUSIP 380146AC4 159 PAGE 8 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 1,344,406.00 0.80 41,454.00- 3,777.08 144A PRIV PLCMT 0.875 12/10/2025 98.9900 96.0290 MOODY'S RATING AA1 CUSIP 40139LBC6 1,205,000 GUARDIAN LIFE GLOBAL FDG 1,205,000.00 1,201,095.80 0.71 3,904.20-699.40 MEDIUM TERM NOTE 100.0000 99.6760 DTD 09/26/2024 4.179% 09/26/2029 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AA1 CUSIP 40139LBJ1 1,663,000 HOME DEPOT INC 1,593,203.89 1,587,782.51 0.94 5,421.38- 14,445.00 DTD 06/17/19 2.950 06/15/2029 95.8030 95.4770 MOODY'S RATING A2 CUSIP 437076BY7 1,000,000 HOME DEPOT INC 992,260.00 1,030,710.00 0.61 38,450.00 12,666.67 DTD 06/25/2024 4.750% 06/25/2029 99.2260 103.0710 CALLABLE MOODY'S RATING A2 CUSIP 437076DC3 535,000 HONDA AUTO RECEIVABLES OWNER 534,935.00 546,711.15 0.32 11,776.15 1,018.13 ASSET BCKD SEC SER 2024-2 CL A3 99.9879 102.1890 DTD 05/21/2024 5.270% 11/20/2028 CALLABLE CUSIP 437930AC4 805,000 HONDA AUTO RECEIVABLES OWNER 806,992.67 823,708.20 0.49 16,715.53 1,267.88 ASSET BCKD SEC SER 2023-4 CL A3 100.2476 102.3240 DTD 11/08/2023 5.670% 06/21/2028 NON CALLABLE MOODY'S RATING AAA CUSIP 438123AC5 160 PAGE 9 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 340,002.36 HONDA AUTO RECEIVABLES OWNER T 339,951.22 335,949.53 0.20 4,001.69-284.09 SER 2022-1 CL A3 *0 DAY DELAY*99.9850 98.8080 DTD 02/23/22 1.000 05/15/2026 MOODY'S RATING AAA CUSIP 43815BAC4 124,921.33 HONDA AUTO RECEIVABLES OWNER T 124,894.99 123,294.85 0.07 1,600.14-30.54 SER 2021-4 CL A3 *0 DAY DELAY*99.9789 98.6980 DTD 11/24/21 0.880 01/21/2026 MOODY'S RATING AAA CUSIP 43815GAC3 610,000 HYUNDAI AUTO LEASE SECURITIZAT 609,983.04 620,376.10 0.37 10,393.06 1,466.71 ASSET BCKD SEC SER 2024-B CL A3 99.9972 101.7010 DTD 05/22/2024 5.410% 05/17/2027 NON CALLABLE 144A PRIVATE PLACEMENT CUSIP 44934FAD7 476,406.37 HYUNDAI AUTO RECEIVABLES TRUST 476,388.03 471,165.90 0.28 5,222.13-470.05 ASSET BCKD SEC SER 2022-A CL A3 99.9962 98.9000 DTD 03/16/2022 2.220% 10/15/2026 CALLABLE CUSIP 448977AD0 312,769.81 HYUNDAI AUTO RECEIVABLES TRUST 304,861.60 309,889.20 0.18 5,027.60 102.87 SER 2021-C CL A3 *0 DAY DELAY*97.4716 99.0790 DTD 11/17/21 0.740 05/15/2026 CUSIP 44935FAD6 2,460,000 INTER-AMERICAN DEVEL BK 2,448,733.20 2,349,915.00 1.39 98,818.20- 9,626.46 DTD 04/20/21 0.875 04/20/2026 99.5420 95.5250 MOODY'S RATING AAA CUSIP 4581X0DV7 2,400,000 INTL BK RECON & DEVELOP 2,388,859.25 2,311,104.00 1.37 77,755.25- 5,100.00 DTD 10/28/20 0.500 10/28/2025 99.5358 96.2960 MOODY'S RATING AAA CUSIP 459058JL8 161 PAGE 10 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 INTL FINANCE CORP 2,471,150.00 2,425,825.00 1.43 45,325.00- 1,958.33 DTD 07/16/20 0.375 07/16/2025 98.8460 97.0330 MOODY'S RATING AAA CUSIP 45950KCT5 2,000,000 JOHN DEERE CAPITAL CORP 2,004,220.00 2,040,880.00 1.21 36,660.00 7,005.56 MEDIUM TERM NOTE 100.2110 102.0440 DTD 03/07/2024 4.850% 03/05/2027 NON CALLABLE MOODY'S RATING A1 CUSIP 24422EXM6 191,836.39 JOHN DEERE OWNER TRUST 191,793.94 189,630.27 0.11 2,163.67-197.80 ASSET BCKD SEC SER 2022-A CL A3 99.9779 98.8500 DTD 03/16/2022 2.320% 09/16/2026 NON CALLABLE MOODY'S RATING AAA CUSIP 47787JAC2 123,022.51 JOHN DEERE OWNER TRUST 123,011.53 121,581.92 0.07 1,429.61-26.65 SER 2021-B CL A3 *0 DAY DELAY*99.9911 98.8290 DTD 07/21/21 0.520 03/16/2026 MOODY'S RATING AAA CUSIP 47789QAC4 490,018.71 JOHN DEERE OWNER TRUST 489,971.92 487,284.41 0.29 2,687.51-814.52 ASSET BCKD SEC SER 2022-B CL A3 99.9905 99.4420 DTD 07/20/2022 3.740% 02/16/2027 NON CALLABLE MOODY'S RATING AAA CUSIP 47800AAC4 943,295.68 JOHN DEERE OWNER TRUST 943,222.48 947,493.35 0.56 4,270.87 2,133.94 ASSET BCKD SEC SER 2022-C CL A3 99.9923 100.4450 DTD 10/19/2022 5.090% 06/15/2027 CALLABLE MOODY'S RATING AAA CUSIP 47800BAC2 162 PAGE 11 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 500,000 JOHN DEERE OWNER TRUST 499,765.63 508,310.00 0.30 8,544.37 1,102.22 ASSET BCKD SEC SER 2024-A CL A3 99.9531 101.6620 DTD 03/19/2024 4.960% 11/15/2028 CALLABLE MOODY'S RATING AAA CUSIP 47800RAD5 1,500,000 JPMORGAN CHASE & CO 1,496,610.00 1,494,420.00 0.88 2,190.00- 11,908.50 DTD 07/23/18 07/23/2029 99.7740 99.6280 MOODY'S RATING A1 CUSIP 46647PAV8 1,500,000 JPMORGAN CHASE & CO 1,500,780.00 1,525,095.00 0.90 24,315.00 14,280.00 DTD 01/23/2024 VAR CPN 01/23/2028 100.0520 101.6730 CALLABLE MOODY'S RATING A1 CUSIP 46647PEA0 1,000,000 MASSMUTUAL GLBL FDG 1,002,630.00 1,026,210.00 0.61 23,580.00 24,366.67 MEDIUM TERM NOTE 100.2630 102.6210 DTD 04/09/2024 5.100% 04/09/2027 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AA3 CUSIP 57629W4S6 1,000,000 MASSMUTUAL GLOBAL FUNDIN 1,002,230.00 950,290.00 0.56 51,940.00- 2,500.00 144A PRIV PLCMT 1.200 07/16/2026 100.2230 95.0290 MOODY'S RATING AA3 CUSIP 57629WDE7 945,000 MASTERCARD INC 944,083.35 976,203.90 0.58 32,120.55 2,815.31 DTD 03/09/2023 4.875% 03/09/2028 99.9030 103.3020 CALLABLE MOODY'S RATING AA3 CUSIP 57636QAW4 163 PAGE 12 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 MERCEDES-BENZ AUTO RECEIVABLES TRUST 1,123,289.06 1,129,854.00 0.67 6,564.94 2,908.89 ASSET BCKD SEC SER 2023-2 CL A3 102.1172 102.7140 DTD 10/25/2023 5.950% 11/15/2028 CALLABLE CUSIP 58769FAC9 1,115,000 MET LIFE GLOB FUNDING I 1,113,728.90 1,063,063.30 0.63 50,665.60- 4,645.83 144A PRIV PLCMT 1.875 01/11/2027 99.8860 95.3420 MOODY'S RATING AA3 CUSIP 59217GER6 770,000 MET TOWER GLOBAL FUNDING 769,291.60 728,820.40 0.43 40,471.20-454.51 144A PRIV PLCMT 1.250 09/14/2026 99.9080 94.6520 MOODY'S RATING AA3 CUSIP 58989V2D5 912,000 META PLATFORMS INC 910,584.09 926,063.04 0.55 15,478.95 5,664.53 DTD 08/09/2024 4.300% 08/15/2029 99.8448 101.5420 CALLABLE MOODY'S RATING AA3 CUSIP 30303M8S4 1,950,000 MORGAN STANLEY BANK 1,950,000.00 1,989,565.50 1.18 39,565.50 19,375.20 DTD 07/19/2024 VAR CPN 07/14/2028 100.0000 102.0290 CALLABLE MOODY'S RATING AA3 CUSIP 61690U8E3 1,000,000 MORGAN STANLEY BK 1,000,082.50 1,036,030.00 0.61 35,947.50 24,671.72 DTD 11/01/2023 5.882% 10/30/2026 100.0083 103.6030 CALLABLE MOODY'S RATING AA3 CUSIP 61690U7W4 1,000,000 NEW YORK LIFE GLOBAL FDG 994,880.00 1,037,470.00 0.61 42,590.00 15,972.22 MEDIUM TERM NOTE 99.4880 103.7470 DTD 06/06/2024 5.000% 06/06/2029 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AAA CUSIP 64952WFG3 164 PAGE 13 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 670,000 NORTHERN TRUST CORP 668,914.60 671,092.10 0.40 2,177.50 10,496.67 DTD 05/10/2022 4.000% 05/10/2027 99.8380 100.1630 CALLABLE MOODY'S RATING A2 CUSIP 665859AW4 850,000 NORTHWESTERN MUTUAL GLOBAL 827,449.50 814,810.00 0.48 12,639.50- 1,454.44 MEDIUM TERM NOTE 97.3470 95.8600 DTD 01/14/2021 0.800% 01/14/2026 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AAA CUSIP 66815L2A6 1,500,000 PEPSICO INC 1,497,675.00 1,545,990.00 0.91 48,315.00 13,875.00 DTD 07/17/2024 4.500% 07/17/2029 99.8450 103.0660 CALLABLE MOODY'S RATING A1 CUSIP 713448FX1 1,500,000 PROGRESSIVE CORP 1,455,495.00 1,496,175.00 0.88 40,680.00 5,000.00 DTD 10/23/18 4.000 03/01/2029 97.0330 99.7450 MOODY'S RATING A2 CUSIP 743315AV5 1,500,000 PROLOGIS LP 1,481,235.00 1,513,005.00 0.89 31,770.00 10,937.50 DTD 02/01/20 4.375 02/01/2029 98.7490 100.8670 MOODY'S RATING A3 CUSIP 74340XBL4 1,463,000 REALTY INCOME CORP 1,419,212.41 1,440,264.98 0.85 21,052.57 12,354.22 DTD 01/15/2024 4.000% 07/15/2029 97.0070 98.4460 CALLABLE MOODY'S RATING A3 CUSIP 756109CB8 1,760,000 STATE STR CORP 1,760,000.00 1,801,606.40 1.07 41,606.40 3,173.33 DTD 03/18/2024 4.993% 03/18/2027 100.0000 102.3640 CALLABLE MOODY'S RATING A1 CUSIP 857477CL5 165 PAGE 14 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,340,000 TORONTO DOMINION BANK 1,340,000.00 1,367,269.00 0.81 27,269.00 32,624.53 MEDIUM TERM NOTE 100.0000 102.0350 CONVERTIBLE DTD 04/05/2024 4.980% 04/05/2027 NON CALLABLE MOODY'S RATING A1 CUSIP 89115A2W1 1,300,000 TOYOTA AUTO RECEIVABLES OWNER 1,294,718.75 1,315,834.00 0.78 21,115.25 2,981.33 ASSET BCKD SEC SER 2023-C CL A3 99.5938 101.2180 DTD 08/15/2023 5.160% 04/17/2028 CALLABLE CUSIP 89231FAD2 123,747.04 TOYOTA AUTO RECEIVABLES OWNER 123,744.40 122,276.93 0.07 1,467.47-39.05 SER 2021-D CL A3 *0 DAY DELAY*99.9979 98.8120 DTD 11/15/21 0.710 04/15/2026 CUSIP 89238JAC9 1,385,000 TOYOTA MOTOR CREDIT CORP 1,384,390.60 1,320,459.00 0.78 63,931.60- 4,457.97 MED TERM NOTE 99.9560 95.3400 DTD 06/18/21 1.125 06/18/2026 MOODY'S RATING A1 CUSIP 89236TJK2 3,100,000 UNITED STATES TREASURY NOTES 3,057,617.20 3,064,443.00 1.81 6,825.80 2,397.79 DTD 03/15/2022 1.750% 03/15/2025 98.6328 98.8530 MOODY'S RATING AAA CUSIP 91282CED9 3,250,000 UNITED STATES TREASURY NOTES 3,260,312.50 3,222,570.00 1.91 37,742.50- 26,693.27 DTD 06/30/2022 3.250% 06/30/2027 100.3173 99.1560 MOODY'S RATING AAA CUSIP 91282CEW7 400,000 UNITED STATES TREASURY NOTES 393,218.75 391,080.00 0.23 2,138.75- 1,853.26 DTD 07/31/2022 2.750% 07/31/2027 98.3047 97.7700 MOODY'S RATING AAA CUSIP 91282CFB2 166 PAGE 15 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 4,500,000 UNITED STATES TREASURY NOTES 4,468,902.34 4,444,290.00 2.63 24,612.34- 12,042.47 DTD 08/31/2022 3.125% 08/31/2027 99.3090 98.7620 MOODY'S RATING AAA CUSIP 91282CFH9 3,450,000 UNITED STATES TREASURY NOTES 3,421,152.34 3,505,407.00 2.07 84,254.66 390.97 DTD 09/30/2022 4.125% 09/30/2027 99.1639 101.6060 MOODY'S RATING AAA CUSIP 91282CFM8 850,000 UNITED STATES TREASURY NOTES 852,656.25 857,437.50 0.51 4,781.25 11,069.16 DTD 11/30/2022 3.875% 11/30/2027 100.3125 100.8750 MOODY'S RATING AAA CUSIP 91282CFZ9 2,750,000 UNITED STATES TREASURY NOTES 2,775,107.42 2,776,207.50 1.64 1,100.08 26,930.20 DTD 12/31/2022 3.875% 12/31/2027 100.9130 100.9530 MOODY'S RATING AAA CUSIP 91282CGC9 3,000,000 UNITED STATES TREASURY NOTES 2,957,929.69 2,993,190.00 1.77 35,260.31 17,690.22 DTD 01/31/2023 3.500% 01/31/2028 98.5977 99.7730 MOODY'S RATING AAA CUSIP 91282CGH8 3,700,000 UNITED STATES TREASURY NOTES 3,699,113.28 3,750,283.00 2.22 51,169.72 12,674.03 DTD 02/28/2023 4.000% 02/29/2028 99.9760 101.3590 MOODY'S RATING AAA CUSIP 91282CGP0 2,500,000 UNITED STATES TREASURY NOTES 2,525,097.66 2,539,650.00 1.50 14,552.34 32,274.59 DTD 12/15/2023 4.375% 12/15/2026 101.0039 101.5860 MOODY'S RATING AAA CUSIP 91282CJP7 2,300,000 UNITED STATES TREASURY NOTES 2,249,867.19 2,352,210.00 1.39 102,342.81 260.65 DTD 03/31/2024 4.125% 03/31/2029 97.8203 102.2700 MOODY'S RATING AAA CUSIP 91282CKG5 167 PAGE 16 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,300,000 UNITED STATES TREASURY NOTES 2,283,109.38 2,350,048.00 1.39 66,938.62 47,790.98 DTD 04/15/2024 4.500% 04/15/2027 99.2656 102.1760 MOODY'S RATING AAA CUSIP 91282CKJ9 3,200,000 UNITED STATES TREASURY NOTES 3,186,500.00 3,272,384.00 1.94 85,884.00 54,391.30 DTD 05/15/2024 4.500% 05/15/2027 99.5781 102.2620 MOODY'S RATING AAA CUSIP 91282CKR1 2,000,000 UNITED STATES TREASURY NOTES 1,985,546.88 2,058,440.00 1.22 72,893.12 21,480.98 DTD 06/30/2024 4.250% 06/30/2029 99.2774 102.9220 MOODY'S RATING AAA CUSIP 91282CKX8 3,500,000 UNITED STATES TREASURY NOTES 3,527,480.47 3,510,395.00 2.08 17,085.47- 10,864.99 DTD 08/31/2024 3.625% 08/31/2029 100.7852 100.2970 MOODY'S RATING AAA CUSIP 91282CLK5 2,000,000 UNITEDHEALTH GROUP INC 1,906,080.00 1,897,020.00 1.12 9,060.00- 7,347.22 DTD 07/25/19 2.875 08/15/2029 95.3040 94.8510 MOODY'S RATING A2 CUSIP 91324PDS8 1,035,000 UNITEDHEALTH GROUP INC 1,025,051.35 989,501.40 0.59 35,549.95- 4,496.50 DTD 05/19/21 1.150 05/15/2026 99.0388 95.6040 MOODY'S RATING A2 CUSIP 91324PEC2 1,500,000 US TREASURY NOTE 1,469,765.63 1,453,515.00 0.86 16,250.63-631.79 DTD 07/31/20 0.250 07/31/2025 97.9844 96.9010 MOODY'S RATING AAA CUSIP 91282CAB7 2,400,000 US TREASURY NOTE 2,366,140.63 2,313,384.00 1.37 52,756.63-16.57 DTD 09/30/20 0.250 09/30/2025 98.5892 96.3910 MOODY'S RATING AAA CUSIP 91282CAM3 168 PAGE 17 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,450,000 US TREASURY NOTE 2,422,492.19 2,355,160.50 1.39 67,331.69- 2,563.18 DTD 10/31/20 0.250 10/31/2025 98.8772 96.1290 MOODY'S RATING AAA CUSIP 91282CAT8 2,250,000 US TREASURY NOTE 2,209,658.20 2,161,147.50 1.28 48,510.70- 2,835.55 DTD 11/30/20 0.375 11/30/2025 98.2070 96.0510 MOODY'S RATING AAA CUSIP 91282CAZ4 2,500,000 US TREASURY NOTE 2,456,445.31 2,389,150.00 1.41 67,295.31- 1,579.48 DTD 02/01/21 0.375 01/31/2026 98.2578 95.5660 MOODY'S RATING AAA CUSIP 91282CBH3 2,500,000 US TREASURY NOTE 2,493,652.34 2,385,950.00 1.41 107,702.34- 7,846.47 DTD 04/30/21 0.750 04/30/2026 99.7461 95.4380 MOODY'S RATING AAA CUSIP 91282CBW0 1,400,000 US TREASURY NOTE 1,379,054.68 1,326,178.00 0.78 52,876.68-33.65 DTD 09/30/21 0.875 09/30/2026 98.5039 94.7270 MOODY'S RATING AAA CUSIP 91282CCZ2 1,400,000 US TREASURY NOTE 1,391,468.75 1,329,734.00 0.79 61,734.75- 6,591.03 DTD 11/01/21 1.125 10/31/2026 99.3906 94.9810 CUSIP 91282CDG3 1,495,000 US TREASURY NOTE 1,518,067.38 1,474,772.65 0.87 43,294.73- 1,553.91 DTD 03/02/20 1.125 02/28/2025 101.5430 98.6470 MOODY'S RATING AAA CUSIP 912828ZC7 2,500,000 US TREASURY NOTE 2,360,839.85 2,443,925.00 1.45 83,085.15 3,944.67 DTD 04/30/20 0.375 04/30/2025 94.4336 97.7570 MOODY'S RATING AAA CUSIP 912828ZL7 169 PAGE 18 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF SEPTEMBER 30, 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 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 350,000 WALMART INC 349,338.50 332,381.00 0.20 16,957.50-142.92 DTD 09/17/21 1.050 09/17/2026 99.8110 94.9660 MOODY'S RATING AA2 CUSIP 931142ER0 ====================================================================================================================================== TOTAL BOND & NOTES 168,846,995.07 168,761,320.03 99.82 85,675.04- 883,775.71 ====================================================================================================================================== TOTAL INVESTMENTS 169,147,087.73 169,061,412.69 100.00 85,675.04- 887,529.24 TOTAL ACCRUALS 887,529.24 887,529.24 ====================================================================================================================================== TOTAL ACCRUALS AND INVESTMENTS 170,034,616.97 169,948,941.93 170 PAGE 19 CASH SUMMARY CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH SUMMARY DESCRIPTION PRINCIPAL CASH INCOME CASH ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BEGINNING BALANCE 0.00 0.00 RECEIPTS NET INTEREST COLLECTED 0.00 643,506.28 TRANSFER RECEIPTS 643,506.28 0.00 SALES 12,746,403.14 0.00 CASH MANAGEMENT SALES 5,974,464.48 0.00 TOTAL CASH RECEIPTS 19,364,373.90 643,506.28 DISBURSEMENTS INVESTMENT MANAGEMENT EXPENSES 10,056.99-0.00 TRANSFER DISBURSEMENTS 0.00 643,506.28- PURCHASES 14,644,990.61-0.00 CASH MANAGEMENT PURCHASES 4,709,326.30-0.00 TOTAL CASH DISBURSEMENTS 19,364,373.90-643,506.28- ======================================================================================================================================== ENDING BALANCE 0.00 0.00 ________________________________________________________________________________________________________________________________________ 171 PAGE 20 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BEGINNING BALANCE 0.00 168,710,087.47 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH EQUIVALENTS 09/03/24 INTEREST RECEIVED 3,474.34 AS 100% TREAS MM FD-SVC CL #008 INTEREST FROM 8/1/24 TO 8/31/24 09/03/24 INTEREST RECEIVED 128.32 PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM INTEREST FROM 8/1/24 TO 8/31/24 09/30/24 4,709,197.98 CASH SWEEP PURCHASES FOR STMT PERIOD 4,709,197.98- 4,709,197.98 AS 100% TREAS MM FD-SVC CL #008 13 TRANSACTIONS 09/30/24 128.32 CASH SWEEP PURCHASES FOR STMT PERIOD 128.32-128.32 PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM 1 TRANSACTIONS 09/30/24 5,974,464.48- CASH SWEEP SALES FOR STMT PERIOD 5,974,464.48 5,974,464.48- AS 100% TREAS MM FD-SVC CL #008 6 TRANSACTIONS BONDS & NOTES 09/16/24 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 9/15/24 09/16/24 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 9/15/24 172 PAGE 21 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/16/24 INTEREST RECEIVED 3,225.04 BANK OF AMERICA ABS 4.930% 5/15/29 CUSIP 05522RDJ4 $0.00411/PV ON 785,000.00 PV DUE 9/15/24 09/18/24 1,240,000- SOLD 1,218,597.60 1,285,656.80-67,059.20- BANK OF MONTREAL 1.850% 5/01/25 CUSIP 06367WB85 AT $98.2740 ON TRADE DATE 09/17/2024 TO SETTLE ON 09/18/2024 TORONTO DOMINION SECURITIES (U 09/18/24 ACCRUED INTEREST ON SALE 8,729.94 BANK OF MONTREAL 1.850% 5/01/25 CUSIP 06367WB85 09/20/24 1,000,000- SOLD 996,280.00 1,024,910.00-28,630.00- BANK OF NEW YORK MEL 3.950% 11/18/25 CUSIP 06406HCQ0 AT $99.6280 ON TRADE DATE 09/19/2024 TO SETTLE ON 09/20/2024 BANC OF AMERICA SECURITIES LLC 09/20/24 ACCRUED INTEREST ON SALE 13,386.11 BANK OF NEW YORK MEL 3.950% 11/18/25 CUSIP 06406HCQ0 09/16/24 INTEREST RECEIVED 18,572.50 BERKSHIRE HATH 2.300% 3/15/27 CUSIP 084664CZ2 INTEREST ON 1,615,000.000 UNITS 09/16/24 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 9/15/24 173 PAGE 22 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/25/24 INTEREST RECEIVED 735.51 BMW VEHICLE OWN ABS 3.210% 8/25/26 CUSIP 05602RAD3 $0.00139/PV ON 274,957.21 PV DUE 9/25/24 09/25/24 27,205.66- PAID DOWN 27,205.66 27,204.25-1.41 BMW VEHICLE OWN ABS 3.210% 8/25/26 CUSIP 05602RAD3 09/25/24 INTEREST RECEIVED 3,000.08 BMW VEHICLE OWN ABS 5.180% 2/26/29 CUSIP 096919AD7 $0.00432/PV ON 695,000.00 PV DUE 9/25/24 09/03/24 INTEREST RECEIVED 11,760.00 CHARLES SCHWAB CORP 2.450% 3/03/27 CUSIP 808513BY0 INTEREST ON 960,000.000 UNITS 09/16/24 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 9/15/24 09/23/24 INTEREST RECEIVED 4,687.50 FED HOME LN MTG CORP 0.375% 9/23/25 CUSIP 3137EAEX3 INTEREST ON 2,500,000.000 UNITS 09/24/24 2,000,000 PURCHASED 1,929,531.25- 1,929,531.25 FED HOME LN MTG CORP 2.982% 5/25/29 CUSIP 3137FMCR1 AT $96.4766 ON TRADE DATE 09/19/2024 TO SETTLE ON 09/24/2024 GOLDMAN SACHS 174 PAGE 23 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/24/24 ACCRUED INTEREST ON PURCHASE 3,810.33- FED HOME LN MTG CORP 2.982% 5/25/29 CUSIP 3137FMCR1 09/04/24 0.01 SHARE ADJUSTMENT FED HOME LN MTG CORP 3.171% 10/25/24 CUSIP 3137BFE98 09/25/24 INTEREST RECEIVED 2,336.95 FED HOME LN MTG CORP 3.171% 10/25/24 CUSIP 3137BFE98 $0.00264/PV ON 461,110.52 PV DUE 9/25/24 09/25/24 461,110.52- PAID DOWN 461,110.52 496,018.03-34,907.51- FED HOME LN MTG CORP 3.171% 10/25/24 CUSIP 3137BFE98 09/25/24 423,258.55- SOLD 421,076.12 455,300.54-34,224.42- FED HOME LN MTG CORP 3.171% 10/25/24 CUSIP 3137BFE98 AT $99.4844 ON TRADE DATE 09/03/2024 TO SETTLE ON 09/25/2024 TORONTO DOMINION SECURITIES (U 09/25/24 ACCRUED INTEREST ON SALE 186.41 FED HOME LN MTG CORP 3.171% 10/25/24 CUSIP 3137BFE98 09/25/24 INTEREST RECEIVED 3,824.29 FED HOME LN MTG CORP 3.563% 1/25/29 CUSIP 3137FL6P4 $0.00297/PV ON 1,288,000.00 PV DUE 9/25/24 175 PAGE 24 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/06/24 1,600,000 PURCHASED 1,488,375.00- 1,488,375.00 FHLMC MULTIFAMILY ST 2.425% 8/25/29 CUSIP 3137FPHK4 AT $93.0234 ON TRADE DATE 09/03/2024 TO SETTLE ON 09/06/2024 TORONTO DOMINION SECURITIES (U 09/06/24 ACCRUED INTEREST ON PURCHASE 538.89- FHLMC MULTIFAMILY ST 2.425% 8/25/29 CUSIP 3137FPHK4 09/25/24 INTEREST RECEIVED 1,437.04 FHLMC MULTIFAMILY ST 2.653% 8/25/26 CUSIP 3137BSP72 $0.00221/PV ON 650,000.00 PV DUE 9/25/24 09/25/24 INTEREST RECEIVED 5,105.83 FHLMC MULTIFAMILY ST 2.785% 6/25/29 CUSIP 3137FNAE0 $0.00232/PV ON 2,200,000.00 PV DUE 9/25/24 09/24/24 570,000- SOLD 561,539.06 582,001.17-20,462.11- FHLMC MULTIFAMILY ST 2.995% 12/25/25 CUSIP 3137BN6G4 AT $98.5156 ON TRADE DATE 09/19/2024 TO SETTLE ON 09/24/2024 TORONTO DOMINION SECURITIES (U 09/24/24 ACCRUED INTEREST ON SALE 1,090.68 FHLMC MULTIFAMILY ST 2.995% 12/25/25 CUSIP 3137BN6G4 09/25/24 INTEREST RECEIVED 1,422.62 FHLMC MULTIFAMILY ST 2.995% 12/25/25 CUSIP 3137BN6G4 $0.00250/PV ON 0.00 PV DUE 9/25/24 176 PAGE 25 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/25/24 INTEREST RECEIVED 2,487.50 FHLMC MULTIFAMILY ST 3.010% 8/25/25 CUSIP 3137BLMZ8 $0.00249/PV ON 991,693.37 PV DUE 9/25/24 09/25/24 1,963.03- PAID DOWN 1,963.03 2,119.46-156.43- FHLMC MULTIFAMILY ST 3.010% 8/25/25 CUSIP 3137BLMZ8 09/25/24 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 9/25/24 09/25/24 428,233.28- SOLD 423,566.21 440,963.19-17,396.98- FHLMC MULTIFAMILY ST 3.308% 9/25/25 CUSIP 3137BM7C4 AT $98.9102 ON TRADE DATE 09/19/2024 TO SETTLE ON 09/25/2024 TORONTO DOMINION SECURITIES (U 09/25/24 ACCRUED INTEREST ON SALE 905.05 FHLMC MULTIFAMILY ST 3.308% 9/25/25 CUSIP 3137BM7C4 09/26/24 INTEREST RECEIVED 1,182.90 FHLMC MULTIFAMILY ST 3.308% 9/25/25 CUSIP 3137BM7C4 $0.00276/PV ON 871.44 PV DUE 9/25/24 09/26/24 871.44- PAID DOWN 871.44 897.34-25.90- FHLMC MULTIFAMILY ST 3.308% 9/25/25 CUSIP 3137BM7C4 TO SETTLE ON 09/26/2024 177 PAGE 26 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/25/24 INTEREST RECEIVED 7,841.25 FHLMC MULTIFAMILY ST 3.690% 1/25/29 CUSIP 3137FKZZ2 $0.00308/PV ON 2,550,000.00 PV DUE 9/25/24 09/25/24 INTEREST RECEIVED 6,285.00 FHLMC MULTIFAMILY ST 3.771% 12/25/28 CUSIP 3137FKUP9 $0.00314/PV ON 2,000,000.00 PV DUE 9/25/24 09/25/24 INTEREST RECEIVED 3,766.67 FHLMC SER K748 CMO 2.260% 1/25/29 CUSIP 3137H5YC5 $0.00188/PV ON 2,000,000.00 PV DUE 9/25/24 09/16/24 INTEREST RECEIVED 654.35 GM FINANCIAL ABS 3.100% 2/16/27 CUSIP 362585AC5 $0.00168/PV ON 253,297.12 PV DUE 9/16/24 09/16/24 18,651.36- PAID DOWN 18,651.36 18,647.46-3.90 GM FINANCIAL ABS 3.100% 2/16/27 CUSIP 362585AC5 09/16/24 INTEREST RECEIVED 5,294.58 GM FINANCIAL ABS 4.850% 12/18/28 CUSIP 36268GAD7 $0.00404/PV ON 1,310,000.00 PV DUE 9/16/24 09/16/24 INTEREST RECEIVED 72.50 GM FINANCIAL SECURIT 0.680% 9/16/26 CUSIP 362554AC1 $0.00021/PV ON 127,934.78 PV DUE 9/16/24 178 PAGE 27 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/16/24 13,817.46- PAID DOWN 13,817.46 13,817.11-0.35 GM FINANCIAL SECURIT 0.680% 9/16/26 CUSIP 362554AC1 09/16/24 INTEREST RECEIVED 137.44 GM FINANCIAL SECURIT 1.260% 11/16/26 CUSIP 380146AC4 $0.00047/PV ON 130,896.31 PV DUE 9/16/24 09/16/24 13,055.48- PAID DOWN 13,055.48 13,054.34-1.14 GM FINANCIAL SECURIT 1.260% 11/16/26 CUSIP 380146AC4 09/26/24 1,205,000 PURCHASED 1,205,000.00- 1,205,000.00 GUARDIAN LIFE MTN 4.179% 9/26/29 CUSIP 40139LBJ1 AT $100.0000 ON TRADE DATE 09/23/2024 TO SETTLE ON 09/26/2024 DEUTSCHE BANK SECURITIES INC. 09/18/24 1,663,000 PURCHASED 1,593,203.89- 1,593,203.89 HOME DEPOT INC 2.950% 6/15/29 CUSIP 437076BY7 AT $95.8030 ON TRADE DATE 09/17/2024 TO SETTLE ON 09/18/2024 DAIWA SECURITIES AMER 09/18/24 ACCRUED INTEREST ON PURCHASE 12,673.45- HOME DEPOT INC 2.950% 6/15/29 CUSIP 437076BY7 09/18/24 1,350,000- SOLD 1,387,422.00 1,346,913.30-40,508.70 HOME DEPOT INC 4.875% 6/25/27 CUSIP 437076DB5 AT $102.7720 ON TRADE DATE 09/17/2024 TO SETTLE ON 09/18/2024 DEUTSCHE BANK SECURITIES INC. 179 PAGE 28 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/18/24 ACCRUED INTEREST ON SALE 15,173.44 HOME DEPOT INC 4.875% 6/25/27 CUSIP 437076DB5 09/18/24 INTEREST RECEIVED 2,349.54 HONDA AUTO RECE ABS 5.270% 11/20/28 CUSIP 437930AC4 $0.00439/PV ON 535,000.00 PV DUE 9/18/24 09/23/24 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 9/21/24 09/23/24 INTEREST RECEIVED 105.74 HONDA AUTO RECEIVABL 0.880% 1/21/26 CUSIP 43815GAC3 $0.00023/PV ON 144,189.73 PV DUE 9/21/24 09/23/24 19,268.4- PAID DOWN 19,268.40 19,264.34-4.06 HONDA AUTO RECEIVABL 0.880% 1/21/26 CUSIP 43815GAC3 TO SETTLE ON 09/23/2024 09/16/24 INTEREST RECEIVED 593.34 HONDA AUTO RECEIVABL 1.000% 5/15/26 CUSIP 43815BAC4 $0.00080/PV ON 378,728.67 PV DUE 9/15/24 09/16/24 38,726.31- PAID DOWN 38,726.31 38,720.48-5.83 HONDA AUTO RECEIVABL 1.000% 5/15/26 CUSIP 43815BAC4 AT $3,095.5713 ON TRADE DATE 09/15/2024 TO SETTLE ON 09/16/2024 180 PAGE 29 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/16/24 INTEREST RECEIVED 2,750.08 HYUNDAI AUTO ABS 5.410% 5/17/27 CUSIP 44934FAD7 $0.00451/PV ON 610,000.00 PV DUE 9/15/24 09/16/24 INTEREST RECEIVED 978.63 HYUNDAI AUTO REC ABS 2.220% 10/15/26 CUSIP 448977AD0 $0.00097/PV ON 528,989.09 PV DUE 9/15/24 09/16/24 52,582.72- PAID DOWN 52,582.72 52,580.70-2.02 HYUNDAI AUTO REC ABS 2.220% 10/15/26 CUSIP 448977AD0 AT $2,279.8374 ON TRADE DATE 09/15/2024 TO SETTLE ON 09/16/2024 09/16/24 INTEREST RECEIVED 232.21 HYUNDAI AUTO RECEIVA 0.740% 5/15/26 CUSIP 44935FAD6 $0.00017/PV ON 376,555.82 PV DUE 9/15/24 09/16/24 63,786.01- PAID DOWN 63,786.01 62,173.22-1,612.79 HYUNDAI AUTO RECEIVA 0.740% 5/15/26 CUSIP 44935FAD6 AT $2,499.6149 ON TRADE DATE 09/15/2024 TO SETTLE ON 09/16/2024 09/05/24 INTEREST RECEIVED 47,961.11 JOHN DEERE CAP MTN 4.850% 3/05/27 CUSIP 24422EXM6 INTEREST ON 2,000,000.000 UNITS 181 PAGE 30 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/16/24 INTEREST RECEIVED 4,239.77 JOHN DEERE OWNE ABS 5.090% 6/15/27 CUSIP 47800BAC2 $0.00404/PV ON 999,553.58 PV DUE 9/15/24 09/16/24 56,257.9- PAID DOWN 56,257.90 56,253.53-4.37 JOHN DEERE OWNE ABS 5.090% 6/15/27 CUSIP 47800BAC2 AT $2,130.9017 ON TRADE DATE 09/15/2024 TO SETTLE ON 09/16/2024 09/16/24 INTEREST RECEIVED 404.02 JOHN DEERE OWNER ABS 2.320% 9/16/26 CUSIP 47787JAC2 $0.00090/PV ON 208,977.90 PV DUE 9/15/24 09/16/24 17,141.51- PAID DOWN 17,141.51 17,137.72-3.79 JOHN DEERE OWNER ABS 2.320% 9/16/26 CUSIP 47787JAC2 AT $6,993.5527 ON TRADE DATE 09/15/2024 TO SETTLE ON 09/16/2024 09/16/24 INTEREST RECEIVED 1,613.74 JOHN DEERE OWNER ABS 3.740% 2/16/27 CUSIP 47800AAC4 $0.00246/PV ON 517,776.20 PV DUE 9/15/24 09/16/24 27,757.49- PAID DOWN 27,757.49 27,754.84-2.65 JOHN DEERE OWNER ABS 3.740% 2/16/27 CUSIP 47800AAC4 AT $4,318.8362 ON TRADE DATE 09/15/2024 TO SETTLE ON 09/16/2024 182 PAGE 31 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/16/24 INTEREST RECEIVED 2,066.67 JOHN DEERE OWNER ABS 4.960% 11/15/28 CUSIP 47800RAD5 $0.00413/PV ON 500,000.00 PV DUE 9/15/24 09/16/24 INTEREST RECEIVED 59.65 JOHN DEERE OWNER TRU 0.520% 3/16/26 CUSIP 47789QAC4 $0.00010/PV ON 137,647.92 PV DUE 9/15/24 09/16/24 14,625.41- PAID DOWN 14,625.41 14,624.11-1.30 JOHN DEERE OWNER TRU 0.520% 3/16/26 CUSIP 47789QAC4 TO SETTLE ON 09/16/2024 09/09/24 INTEREST RECEIVED 23,034.38 MASTERCARD INC 4.875% 3/09/28 CUSIP 57636QAW4 INTEREST ON 945,000.000 UNITS 09/16/24 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 9/15/24 09/16/24 INTEREST RECEIVED 4,812.50 P/P MET TOWER GLOBAL 1.250% 9/14/26 CUSIP 58989V2D5 INTEREST ON 770,000.000 UNITS 09/12/24 1,680,000- SOLD 1,659,453.60 1,678,185.60-18,732.00- P/P NEW YORK LIF MTN 1.450% 1/14/25 CUSIP 64952WEK5 AT $98.7770 ON TRADE DATE 09/11/2024 TO SETTLE ON 09/12/2024 MARKETAXESS CORPORATION 183 PAGE 32 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/12/24 ACCRUED INTEREST ON SALE 3,924.67 P/P NEW YORK LIF MTN 1.450% 1/14/25 CUSIP 64952WEK5 09/03/24 INTEREST RECEIVED 3,616.00 P/P PRICOA GLOBAL FU 0.800% 9/01/25 CUSIP 74153WCM9 INTEREST ON 904,000.000 UNITS 09/18/24 904,000- SOLD 874,122.80 832,972.72-41,150.08 P/P PRICOA GLOBAL FU 0.800% 9/01/25 CUSIP 74153WCM9 AT $96.6950 ON TRADE DATE 09/17/2024 TO SETTLE ON 09/18/2024 PERSHING LLC 09/18/24 ACCRUED INTEREST ON SALE 341.51 P/P PRICOA GLOBAL FU 0.800% 9/01/25 CUSIP 74153WCM9 09/12/24 885,000- SOLD 875,273.85 884,769.90-9,496.05- PACCAR FIN MTN 2.850% 4/07/25 CUSIP 69371RR73 AT $98.9010 ON TRADE DATE 09/11/2024 TO SETTLE ON 09/12/2024 MARKETAXESS CORPORATION 09/12/24 ACCRUED INTEREST ON SALE 10,859.69 PACCAR FIN MTN 2.850% 4/07/25 CUSIP 69371RR73 09/03/24 INTEREST RECEIVED 30,000.00 PROGRESSIVE CORP 4.000% 3/01/29 CUSIP 743315AV5 INTEREST ON 1,500,000.000 UNITS 184 PAGE 33 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/18/24 INTEREST RECEIVED 43,938.40 STATE STR CORP 4.993% 3/18/27 CUSIP 857477CL5 INTEREST ON 1,760,000.000 UNITS 09/16/24 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 9/15/24 09/16/24 INTEREST RECEIVED 83.91 TOYOTA AUTO RECEIVAB 0.710% 4/15/26 CUSIP 89238JAC9 $0.00020/PV ON 141,811.73 PV DUE 9/15/24 09/16/24 18,064.69- PAID DOWN 18,064.69 18,064.30-0.39 TOYOTA AUTO RECEIVAB 0.710% 4/15/26 CUSIP 89238JAC9 AT $6,636.1534 ON TRADE DATE 09/15/2024 TO SETTLE ON 09/16/2024 09/16/24 INTEREST RECEIVED 27,125.00 U.S. TREASURY NOTES 1.750% 3/15/25 CUSIP 91282CED9 INTEREST ON 3,100,000.000 UNITS 09/03/24 INTEREST RECEIVED 70,312.50 U.S. TREASURY NOTES 3.125% 8/31/27 CUSIP 91282CFH9 INTEREST ON 4,500,000.000 UNITS 09/13/24 3,500,000 PURCHASED 3,527,480.47- 3,527,480.47 U.S. TREASURY NOTES 3.625% 8/31/29 CUSIP 91282CLK5 AT $100.7852 ON TRADE DATE 09/11/2024 TO SETTLE ON 09/13/2024 MERRILL LYNCH,PIERCE,FENNER 185 PAGE 34 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/13/24 ACCRUED INTEREST ON PURCHASE 4,556.28- U.S. TREASURY NOTES 3.625% 8/31/29 CUSIP 91282CLK5 09/03/24 INTEREST RECEIVED 74,000.00 U.S. TREASURY NOTES 4.000% 2/29/28 CUSIP 91282CGP0 INTEREST ON 3,700,000.000 UNITS 09/30/24 INTEREST RECEIVED 47,437.50 U.S. TREASURY NOTES 4.125% 3/31/29 CUSIP 91282CKG5 INTEREST ON 2,300,000.000 UNITS 09/30/24 INTEREST RECEIVED 71,156.25 U.S. TREASURY NOTES 4.125% 9/30/27 CUSIP 91282CFM8 INTEREST ON 3,450,000.000 UNITS 09/18/24 2,000,000 PURCHASED 1,906,080.00- 1,906,080.00 UNITEDHEALTH GROUP 2.875% 8/15/29 CUSIP 91324PDS8 AT $95.3040 ON TRADE DATE 09/17/2024 TO SETTLE ON 09/18/2024 DEUTSCHE BANK SECURITIES INC. 09/18/24 ACCRUED INTEREST ON PURCHASE 5,270.83- UNITEDHEALTH GROUP 2.875% 8/15/29 CUSIP 91324PDS8 09/18/24 675,000- SOLD 673,771.50 675,316.70-1,545.20- UNITEDHEALTH GRP INC 3.700% 5/15/27 CUSIP 91324PEG3 AT $99.8180 ON TRADE DATE 09/17/2024 TO SETTLE ON 09/18/2024 CITIGROUP GBL MKTS/SALOMON BRO 186 PAGE 35 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/18/24 ACCRUED INTEREST ON SALE 8,533.12 UNITEDHEALTH GRP INC 3.700% 5/15/27 CUSIP 91324PEG3 09/30/24 INTEREST RECEIVED 3,000.00 US TREASURY NOTE 0.250% 9/30/25 CUSIP 91282CAM3 INTEREST ON 2,400,000.000 UNITS 09/30/24 INTEREST RECEIVED 6,125.00 US TREASURY NOTE 0.875% 9/30/26 CUSIP 91282CCZ2 INTEREST ON 1,400,000.000 UNITS 09/03/24 INTEREST RECEIVED 8,437.50 US TREASURY NOTE 1.125% 2/28/25 CUSIP 912828ZC7 INTEREST ON 1,500,000.000 UNITS 09/19/24 5,000- SOLD 4,926.56 5,077.15-150.59- US TREASURY NOTE 1.125% 2/28/25 CUSIP 912828ZC7 AT $98.5312 ON TRADE DATE 09/19/2024 WACHOVIA CAPITAL MARKETS, LLC. 09/19/24 ACCRUED INTEREST ON SALE 2.95 US TREASURY NOTE 1.125% 2/28/25 CUSIP 912828ZC7 09/18/24 700,000- SOLD 681,548.00 701,274.00-19,726.00- VR BANK OF AMERICA 1.319% 6/19/26 CUSIP 06051GJD2 AT $97.3640 ON TRADE DATE 09/17/2024 TO SETTLE ON 09/18/2024 BARCLAYS CAPITAL INC. FIXED IN 187 PAGE 36 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/18/24 ACCRUED INTEREST ON SALE 2,282.60 VR BANK OF AMERICA 1.319% 6/19/26 CUSIP 06051GJD2 09/18/24 600,000- SOLD 592,416.00 620,988.00-28,572.00- VR BANK OF AMERICA 2.015% 2/13/26 CUSIP 06051GHY8 AT $98.7360 ON TRADE DATE 09/17/2024 TO SETTLE ON 09/18/2024 BARCLAYS CAPITAL INC. FIXED IN 09/18/24 ACCRUED INTEREST ON SALE 1,175.42 VR BANK OF AMERICA 2.015% 2/13/26 CUSIP 06051GHY8 09/24/24 1,150,000- SOLD 1,137,361.50 1,114,222.54-23,138.96 VR BANK OF AMERICA 3.559% 4/23/27 CUSIP 06051GHT9 AT $98.9010 ON TRADE DATE 09/23/2024 TO SETTLE ON 09/24/2024 BANC OF AMERICA SECURITIES LLC 09/24/24 ACCRUED INTEREST ON SALE 17,167.23 VR BANK OF AMERICA 3.559% 4/23/27 CUSIP 06051GHT9 09/18/24 1,500,000 PURCHASED 1,498,710.00- 1,498,710.00 VR BANK OF AMERICA 4.271% 7/23/29 CUSIP 06051GHM4 AT $99.9140 ON TRADE DATE 09/17/2024 TO SETTLE ON 09/18/2024 BANC OF AMERICA SECURITIES LLC 09/18/24 ACCRUED INTEREST ON PURCHASE 9,787.71- VR BANK OF AMERICA 4.271% 7/23/29 CUSIP 06051GHM4 188 PAGE 37 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/25/24 INTEREST RECEIVED 2,639.42 VR FHLMC MULTIFAMI 3.334% 8/25/25 CUSIP 3137BLW95 $0.00278/PV ON 950,000.00 PV DUE 9/25/24 09/18/24 401,000- SOLD 394,162.95 415,969.33-21,806.38- VR JPMORGAN CHASE & 2.083% 4/22/26 CUSIP 46647PBK1 AT $98.2950 ON TRADE DATE 09/17/2024 TO SETTLE ON 09/18/2024 BARCLAYS CAPITAL INC. FIXED IN 09/18/24 ACCRUED INTEREST ON SALE 3,387.54 VR JPMORGAN CHASE & 2.083% 4/22/26 CUSIP 46647PBK1 09/18/24 1,500,000 PURCHASED 1,496,610.00- 1,496,610.00 VR JPMORGAN CHASE & 4.203% 7/23/29 CUSIP 46647PAV8 AT $99.7740 ON TRADE DATE 09/17/2024 TO SETTLE ON 09/18/2024 JEFFERIES & COMPANY, INC. 09/18/24 ACCRUED INTEREST ON PURCHASE 9,631.88- VR JPMORGAN CHASE & 4.203% 7/23/29 CUSIP 46647PAV8 09/17/24 INTEREST RECEIVED 1,837.50 WALMART INC 1.050% 9/17/26 CUSIP 931142ER0 INTEREST ON 350,000.000 UNITS 189 PAGE 38 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ TRANSFER RECEIPTS 09/03/24 ADDITION TO ACCOUNT 201,728.66 TRANSFER FROM INCOME 09/05/24 ADDITION TO ACCOUNT 47,961.11 TRANSFER FROM INCOME 09/09/24 ADDITION TO ACCOUNT 22,884.98 TRANSFER FROM INCOME 09/12/24 ADDITION TO ACCOUNT 14,784.36 TRANSFER FROM INCOME 09/16/24 ADDITION TO ACCOUNT 92,255.03 TRANSFER FROM INCOME 09/17/24 ADDITION TO ACCOUNT 5,721.88 TRANSFER FROM INCOME 09/18/24 ADDITION TO ACCOUNT 48,547.64 TRANSFER FROM INCOME 09/20/24 ADDITION TO ACCOUNT 13,389.06 TRANSFER FROM INCOME 09/23/24 ADDITION TO ACCOUNT 8,596.87 TRANSFER FROM INCOME 09/24/24 ADDITION TO ACCOUNT 15,354.47 TRANSFER FROM INCOME 09/25/24 ADDITION TO ACCOUNT 41,248.54 TRANSFER FROM INCOME 190 PAGE 39 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/26/24 ADDITION TO ACCOUNT 2,132.03 TRANSFER FROM INCOME 09/27/24 ADDITION TO ACCOUNT 1,182.90 TRANSFER FROM INCOME 09/30/24 ADDITION TO ACCOUNT 127,718.75 TRANSFER FROM INCOME INVESTMENT MANAGEMENT EXPENSES 09/09/24 INVESTMENT MGMT FEE 10,056.99- PAID TO CHANDLER ASSET MANAGEMENT INC CHANDLER ASSET MGMT FEE 2408CUPERTIN PERIOD 8.1.24-8.31.24 TRANSFER DISBURSEMENTS 09/03/24 TRANSFER TO PRINCIPAL 201,728.66- 09/05/24 TRANSFER TO PRINCIPAL 47,961.11- 09/09/24 TRANSFER TO PRINCIPAL 22,884.98- 09/12/24 TRANSFER TO PRINCIPAL 14,784.36- 09/16/24 TRANSFER TO PRINCIPAL 92,255.03- 09/17/24 TRANSFER TO PRINCIPAL 5,721.88- 09/18/24 TRANSFER TO PRINCIPAL 48,547.64- 09/20/24 TRANSFER TO PRINCIPAL 13,389.06- 09/23/24 TRANSFER TO PRINCIPAL 8,596.87- 191 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 40 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD SEPTEMBER 1, 2024 THROUGH SEPTEMBER 30, 2024 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 09/24/24 TRANSFER TO PRINCIPAL 15,354.47- 09/25/24 TRANSFER TO PRINCIPAL 41,248.54- 09/26/24 TRANSFER TO PRINCIPAL 2,132.03- 09/27/24 TRANSFER TO PRINCIPAL 1,182.90- 09/30/24 TRANSFER TO PRINCIPAL 127,718.75- ================================================================================================================= ENDING BALANCE 0.00 169,147,087.73 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 192 CITY OF CUPERTINO PARS Post-Employment Benefits Trust 9/1/2024 to 9/30/2024 Kristina Alfaro Director of Administrative Services City of Cupertino 10300 Torre Ave. Cupertino, CA 95014 Account Summary Source 9/1/2024 Contributions Earnings Expenses Distributions Transfers 9/30/2024 OPEB 1001 $39,725,258.30 $0.00 $655,055.49 $10,800.09 $0.00 $0.00 $40,369,513.70 PENSION 1002 $22,599,082.20 $0.00 $374,060.92 $6,142.80 $0.00 $0.00 $22,967,000.32 Totals $62,324,340.50 $0.00 $1,029,116.41 $16,942.89 $0.00 $0.00 $63,336,514.02 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 1.65%6.29%24.81%4.03%7.72%6.73%6/21/2010 PENSION 1.66%6.11%24.56%3.96%8.45%-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 193 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 October 02, 2024 LAIF Home PMIA Average Monthly Yields CITY OF CUPERTINO FINANCE MANAGER 10300 TORRE AVENUE CUPERTINO, CA 95014 Account Number: September 2024 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:65,759,753.90 Total Withdrawal:0.00 Ending Balance:65,759,753.90 10/2/24, 7:14 AM LAIF Regular Monthly Statement https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1194 CITY OF CUPERTINO Agenda Item 24-13476 Agenda Date: 10/31/2024 Agenda #: 8. 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 5:40(10) CITY OF CUPERTINO Printed on 10/30/2024Page 1 of 1 powered by Legistar™195 January 29, 2024 Regular Meeting March 21,2024 Special Meeting April 22, 2024 Regular Meeting June 24, 2024 Special Meeting July 22, 2024 Regular Meeting October 28, 2024 Regular Meeting October 31, 2024 Special Meeting December 16, 2024 (Tentative) Special Meeting 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 FY 2022‐23 ACFR and Supplemental Reports Review 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 Budget Format Review Receive Chandler Investments Presentation Internal Audit and Fraud, Waste, and Abuse Programs Update Internal Audit Program Internal Audit and Fraud, Waste, and Abuse Program Update Internal Audit and Fraud, Waste, and Abuse Program Update Agreed Upon Procedures (AUP) Review ‐ GANN Limit, Investment Policy, Storm Drain Receive The Pun Group Presentation Annual Review of City Investment Policy Internal Audit ‐ Citywide Policy Review Discuss Agreed Upon Procedures (AUP) ‐ Credit Card Receive Moss Adams Presentation Review of FY 2022‐23 ACFR and Supplemental Reports (tentative) Annual Review of OPEB and Pension Trust Investment Policies Receive Budget Feedback on the City’s current recommended Service Level Reductions (SLRs) Agreed Upon Procedures (AUP) Review ‐ GANN Limit, Investment Policy, Storm Drain Budget Format Review Discuss Agreed Upon Procedures (AUP) ‐ Credit Card Receive the proposed Audit Committee 2024 Schedule and Workplan Fiscal Year 2023‐24 ACFR Update Summary of Duties – Powers – Responsibilities of Cupertino Audit Committee 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 CA N C E L L E D CA N C E L L E D 19 6