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02-19-2019 - AGENDA ITEM 03 CITY INVESTMENT REPORT FOR THE MONTH ENDED DECEMBER 31, 2018AGENDA ITEM NO.3 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: February 19, 2019 TO: Mayor and City Council FROM: Chris Freeland City Manager SUBJECT: CITY INVESTMENT REPORT FOR THE MONTH ENDED DECEMBER 31, 2018 RECOMMENDATION: It is recommended that the City Council receive and file the Investment Report for the month ended December 31, 2018. DISCUSSION: The Investment Report (Attachment No. 1) presents the City's cash and investments for the month ended December 31, 2018. This report is in compliance with California Government Code Section 53646 regarding the reporting of detailed information on all securities, investments, and monies of the City, as well as, reporting of the market value of the investments held. All of the investments contained within the portfolio are in full compliance with Government Code Section 53601 and the City's Investment Policy as to the types of investments allowed. The City's Investment Policy was last revised and adopted by City Council on June 5, 2018. As stated in the attached report, there are sufficient funds to meet the budgeted expenditures over the next six months. The City's Investment Policy has set primary goals of the portfolio management of safety, liquidity and yield. The City's surplus funds are with the Los Angeles County Investment Pool (LACIP) and Chandler Asset Management. At December 31, 2018, the City's investment portfolio had a market value of $46,262,352. Bond reserves are held and invested by a Trustee. The investment of these funds is governed by an investment policy approved by the City Council as a part of the governing documents for each specific bond issue. At December 31, 2018, the City's bond reserves had a market value of $1,656,372. Prepared by: Todd H. Owens, Accounting Manager Additional Approval: Marcie Medina, Finance Director Fiscal Impact FISCAL IMPACT: No Fiscal Impact. Attachments Attachment No. 1 - Investment Report City of West Covina Consolidated Holdings Report Account #10482 As of December 31, 2018 US CORPORATE Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P DurationCUSIP Fitch Maturity 084664CK5 Berkshire Hathaway Note 205,000.00 08/08/2016 204,801.15 98.95 202,848.12 0.92% Aa2 / AA 0.62 1.3% Due 8/15/2019 1.33% 204,958.96 3.01% 1,006.78 (2,110.84) A+ 0.61 06406HCW7 Bank of New York Callable Note Cont 500,000.00 Various 514,405.00 99.48 497,401.00 2.27% Al/A 0.70 8/11/2019 1.36% 503,191.70 3.06% 3,513.90 (5,790.70) AA- 0.68 2.3% Due 9/11/2019 68389XAX3 Oracle Corp Note 250,000.00 08/09/2016 257,177.50 99.53 248,819.50 1.13% Al/AA- 0.77 2.25% Due 10/8/2019 1.32% 251,744.53 2.87% 1,296.88 (2,925.03) A 0.75 46625HKA7 1P Morgan Chase Callable Note Cont 445,000.00 08/26/2016 451,363.50 99.00 440,567.80 2.02% A2 / A- 1.06 12/23/2019 1.81% 446,986.03 3.21% 4,394.38 (6,418.23) AA- 1.03 2.25% Due 1/23/2020 94974BGF1 Wells Fargo Corp Note 250,000.00 07/15/2016 254,060.00 98.91 247,281.25 1.13% A2 / A- 1.08 2.15% Due 1/30/2020 1.67% 251,240.99 3.18% 2,254.51 (3,959.74) A+ 1.05 22160KAGO Costco Wholesale Corp Note 150,000.00 11/01/2016 150,873.00 98.96 148,443.75 0.68% Aa3 / A+ 1.13 1.75%Due 2/15/2020 1.57% 150,298.77 2.69% 991.67 (1,855.02) A+ 1.09 747525ADS Qualcomm Inc Note 500,000.00 07/26/2016 513,955.00 98.61 493,050.00 2.24% A2/A- 1.39 2.25% Due 5/20/2020 1.49% 505,066.34 3.28% 1,281.26 (12,016.34) NR 1.35 437076BQ4 Home Depot Note 90,000.00 05/24/2017 89,947.80 98.57 88,712.19 0.40% A2 / A 1.43 1.8% Due 6/5/2020 1.82% 89,975.19 2.83% 117.00 (1,263.00) A 1.39 00440EAT4 Chubb INA Holdings Inc Callable Note 390,000.00 02/06/2017 391,836.90 98.57 384,422.62 1.75% A3 / A 1.84 Cont 10/3/2020 2.17% 390,905.65 3.10% 1,445.16 (6,483.03) A 1.78 2.3% Due 11/3/2020 44932HAG8 IBM Credit Corp Note 250,000.00 02/14/2018 248,662.50 98.88 247,188.25 1.13% Al/A 2.10 2.65% Due 2/5/2021 2.84% 249,055.74 3.21% 2,686.81 (1,867.49) A 2.00 037833BS8 Apple Inc Callable Note Cont 1/23/2021 250,000.00 08/19/2016 257,375.00 98.83 247,071.00 1.13% Aal/AA+ 2.15 2.25% Due 2/23/2021 1.57% 253,517.03 2.81% 2,000.00 (6,446.03) NR 2.06 30231GAV4 Exxon Mobil Corp Callable Note Cont 250,000.00 07/11/2016 258,810.00 98.56 246,400.50 1.13% Aaa / AA+ 2.17 2/1/2021 1.43% 254,115.85 2.91% 1,851.67 (7,715.35) NR 2.08 2.222% Due 3/1/2021 166764BG4 Chevron Corp Callable Note Cont 250,000.00 08/16/2016 255,022.50 98.07 245,174.00 1.11% Aa2 / AA 2.38 4/15/2021 1.66% 252,512.70 2.94% 656.25 (7,338.70) NR 2.29 2.1% Due 5/16/2021 857477AV5 State Street Bank Note 250,000.00 08/26/2016 252,750.00 97.19 242,981.00 1.10% Al / A 2.38 1.95% Due 5/19/2021 1.71% 251,387.78 3.18% 568.75 (8,406.78) AA- 2.30 Chandler Asset Management- CONFIDENTIAL Page 6 Execution Time: 1/2/201910:13:32 PM City of West Covina Consolidated Holdings Report Account #10482 As of December 31, 2018 US CORPORATE Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P DurationCUSIP Fitch Maturity 594918BPS Microsoft Callable Note Cont 7/8/21 200,000.00 08/26/2016 199,536.00 97.15 194,293.40 0.89% Aaa / AAA 2.61 1.55% Due 8/8/2021 1.60% 199,755.52 2.69% 1,231.39 (5,462.12) AA+ 2.51 69371RN44 Paccar Financial Corp Note 225,000.00 01/25/2017 216,153.00 96.41 216,915.30 0.99% Al / A+ 2.61 1.65% Due 8/11/2021 2.57% 219,902.54 3.09% 1,443.75 (2,987.24) NR 2.51 69353RFE3 PNC Bank Callable Note Cont 6/28/2022 250,000.00 07/25/2017 249,977.50 96.85 242,135.75 1.11% A2/A 3.58 2.45% Due 7/28/2022 2.45% 249,983.93 3.39% 2,603.13 (7,848.18) A+ 3.35 6,197,609.05 6,037,393.88 27.54% Al/A+ 1.37 Total US Corporate 6,115,000.00 1.64% 6,136,614.21 3.03% 36,022.26 (99,220.33) A+ 1.32 US TREASURY . i 912828WS5 US Treasury Note 375,000.00 07/20/2016 383,497.35 99.55 373,300.88 1.69% Aaa /AA+ 0.50 1.625% Due 6/30/2019 0.84% 376,424.14 2.54% 16.83 (3,123.26) AAA 0.49 91282SG95 US Treasury Note 750,000.00 07/25/2016 766,848.22 99.00 742,529.26 3.37% Aaa /AA+ 1.00 1.625% Due 12/31/2019 0.96% 754,894.46 2.64% 33.66 (12,365.20) AAA 0.98 912828UL2 US Treasury Note 375,000.00 08/05/2016 380,992.47 98.69 370,092.75 1.69% Aaa /AA+ 1.08 1.375% Due 1/31/2020 0.91% 376,862.33 2.61% 2,157.78 (6,769.58) AAA 1.06 912828UVO US Treasury Note 375,000.00 08/05/2016 377,799.11 98.26 368,481.38 1.68% Aaa /AA+ 1.25 1.125% Due 3/31/2020 0.92% 375,956.87 2.55% 1,077.87 (7,475.49) AAA 1.22 9128281(58 US Treasury Note 225,000.00 06/27/2017 224,113.06 98.46 221,537.03 1.01% Aaa /AA+ 1.33 1.375% Due 4/30/2020 1.52% 224,585.18 2.56% 529.87 (3,048.15) AAA 1.30 912828VF4 US Treasury Note 375,000.00 08/05/2016 380,391.88 98.39 368,950.13 1.67% Aaa / AA+ 1.42 1.375% Due 5/31/2020 0.99% 376,998.71 2.54% 453.30 (8,048.58) AAA 1.39 9128281-99 US Treasury Note 250,000.00 12/14/2016 246,319.20 97.97 244,922.00 1.11% Aaa / AA+ 1.84 1.375% Due 10/31/2020 1.77% 248,260.98 2.52% 588.74 (3,338.98) AAA 1.79 91282SN48 US Treasury Note 250,000.00 01/24/2018 246,796.88 98.57 246,435.50 1.12% Aaa / AA+ 2.00 1.75%Due 12/31/2020 2.20% 247,816.73 2.49% 12.09 (1,381.23) AAA 1.95 91282SN89 US Treasury Note 375,000.00 08/11/2016 380,054.97 97.71 366,401.25 1.67% Aaa /AA+ 2.09 1.375% Due 1/31/2021 1.07% 377,355.68 2.51% 2,157.78 (10,954.43) AAA 2.02 91282SP87 US Treasury Note 350,000.00 06/27/2017 343,397.66 97.11 339,896.55 1.55% Aaa /AA+ 2.16 1.125%Due 2/28/2021 1.66% 346,115.40 2.50% 1,337.88 (6,218.85) AAA 2.11 912828WN6 US Treasury Note 750,000.00 Various 766,555.25 98.89 741,679.50 3.37% Aaa /AA+ 2.42 2% Due 5/31/2021 1.51% 758,538.68 2.48% 1,318.68 (16,859.18) AAA 2.34 Chandler Asset Management- CONFIDENTIAL Paee 7 Execution Time: 1/2/201910:13:32 PM City of West Covina Consolidated Holdings Report Account #10482 As of December 31, 2018 CUSIP Security Description US TREASURY Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 91282SS76 US Treasury Note 250,000.00 05/30/2017 244,366.07 96.62 241,552.75 1.10% Aaa /AA+ 2.58 1.125% Due 7/31/2021 1.69% 246,513.03 2.48% 1,176.97 (4,960.28) AAA 2.51 912828G87 US Treasury Note 165,000.00 06/29/2017 167,307.98 99.02 163,375.74 0.74% Aaa / AA+ 3.00 2.125% Due 12/31/2021 1.80% 166,536.31 2.47% 9.69 (3,160.57) AAA 2.89 91282SV72 US Treasury Note 200,000.00 07/25/2017 200,492.86 98.22 196,437.60 0.90% Aaa / AA+ 3.09 1.875% Due 1/31/2022 1.82% 200,336.34 2.48% 1,569.29 (3,898.74) AAA 2.95 91282BJ43 US Treasury Note 355,000.00 03/13/2017 348,580.68 97.82 347,262.07 1.58% Aaa /AA+ 3.16 1.75% Due 2/28/2022 2.14% 350,909.50 2.47% 2,110.88 (3,647.43) AAA 3.03 912828XGO US Treasury Note 365,000.00 08/15/2017 370,176.81 98.81 360,665.63 1.64% Aaa /AA+ 3.50 2.125% Due 6/30/2022 1.82% 368,715.19 2.48% 21.43 (8,049.56) AAA 3.35 5,827,690.45 5,693,520.02 25.88% Aaa / AA+ 1.92 Total US Treasury 5,785,000.00 1.39% 5,796,819.53 2.53% 14,572.74 (103,299.51) AAA 1.86 22,471,902.06 21,961,369.36 100.00% Aal / AA 1.67 TOTAL PORTFOLIO 22,281,301.12 1.47% 22,335,856.84 2.71% 92,769.40 (374,487.48) AAA 1.57 TOTAL MARKET VALUE PLUS ACCRUED 22,054,138.76 Chandler Asset Management- CONFIDENTIAL Page 8 Execution Time: 1/2/201910:13:32 PM City of West Covina Consolidated Transaction Ledger OR Account #10482 As of December 31, 2018 Transaction Type ACQUISITIONS Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/sold Total Amount Gain/Loss Purchase 12/03/2018 31846V203 1,125,205.98 First American Govt Obligation Fund 1.000 1.81% 1,125,205.98 0.00 1,125,205.98 0.00 Class Y Purchase 12/03/2018 31846V203 221.01 First American Govt Obligation Fund 1.000 1.81% 221.01 0.00 221.01 0.00 Class Y Purchase 12/05/2018 31846V203 810.00 First American Govt Obligation Fund 1.000 1.81% 810.00 0.00 810.00 0.00 Class Y Purchase 12/11/2018 31846V203 3,281.25 First American Govt Obligation Fund 1.000 1.81% 3,281.25 0.00 3,281.25 0.00 Class Y Purchase 12/12/2018 31846V203 3,062.50 First American Govt Obligation Fund 1.000 1.81% 3,062.50 0.00 3,062.50 0.00 Class Y Purchase 12/14/2018 31846V203 3,062.50 First American Govt Obligation Fund 1.000 1.81% 3,062.50 0.00 3,062.50 0.00 Class Y Purchase 12/14/2018 31846V203 350,000.00 First American Govt Obligation Fund 1.000 1.81% 350,000.00 0.00 350,000.00 0.00 Class Y Purchase 12/17/2018 31846V203 154.00 First American Govt Obligation Fund 1.000 1.81% 154.00 0.00 154.00 0.00 Class Y Purchase 12/17/2018 31846V203 6,990.22 First American Govt Obligation Fund 1.000 1.81% 6,990.22 0.00 6,990.22 0.00 Class Y Purchase 12/17/2018 31846V203 53.08 First American Govt Obligation Fund 1.000 1.81% 53.08 0.00 53.08 0.00 Class Y Purchase 12/17/2018 31846V203 15,255.20 First American Govt Obligation Fund 1.000 1.81% 15,255.20 0.00 15,255.20 0.00 Class Y Purchase 12/17/2018 31846V203 110.83 First American Govt Obligation Fund 1.000 1.81% 110.83 0.00 110.83 0.00 Class Y Purchase 12/17/2018 31846V203 9,347.32 First American Govt Obligation Fund 1.000 1.81% 9,347.32 0.00 9,347.32 0.00 Class Y Purchase 12/17/2018 31846V203 22,058.54 First American Govt Obligation Fund 1.000 1.81% 22,058.54 0.00 22,058.54 0.00 Class Y Purchase 12/17/2018 31846V203 15,209.75 First American Govt Obligation Fund 1.000 1.81% 15,209.75 0.00 15,209.75 0.00 Class Y Purchase 12/22/2018 31846V203 5,250.00 First American Govt Obligation Fund 1.000 1.81% 5,250.00 0.00 5,250.00 0.00 Class Y Chandler Asset Management- CONFIDENTIAL Page 9 Execution Time: 1/2/201910:13:32 PM City of West Covina Consolidated Transaction Ledger OR Account #10482 As of December 31, 2018 Transaction Type ACQUISITIONS Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/sold Total Amount Gain/Loss Purchase 12/26/2018 31846V203 373.88 First American Govt Obligation Fund 1.000 1.81% 373.88 0.00 373.88 0.00 Class Y Purchase 12/31/2018 31846V203 16,959.39 First American Govt Obligation Fund 1.000 2.05% 16,959.39 0.00 16,959.39 0.00 Class Y Subtotal 1,577,405.45 1,577,405.45 0.00 1,577,405.45 0.00 TOTAL ACQUISITIONS 1,577,405.45 1,577,405.45 0.00 1,577,405.45 0.00 DISPOSITIONS i Sale 12/03/2018 037833AQ3 250,000.00 Apple Inc Note 99.700 2.81% 249,250.00 393.75 249,643.75 -1,845.71 2.1% Due 5/6/2019 Sale 12/03/2018 17275RAR3 250,000.00 Cisco Systems Note 99.837 2.78% 249,592.50 1,357.64 250,950.14 -1,008.93 2.125% Due 3/1/2019 Sale 12/03/2018 30231GAD4 250,000.00 Exxon Mobil Corp Callable Note Cont 99.750 2.70% 249,375.00 985.29 250,360.29 -1,085.42 2/15/2019 1.819% Due 3/15/2019 Sale 12/03/2018 91282SD23 375,000.00 US Treasury Note 99.652 2.48% 373,696.29 555.51 374,251.80 -1,747.03 1.625% Due 4/30/2019 Subtotal 1,125,000.00 1,121,913.79 3,292.19 1,125,205.98 -5,687.09 Paydown 12/17/2018 43811BACS 0.00 Honda Auto Receivables 2017-2 A3 100.000 0.00 154.00 154.00 0.00 1.68% Due 8/16/2021 Paydown 12/17/2018 47788BABO 6,926.64 John Deere Owner Trust 2017-B A2A 100.000 6,926.64 63.58 6,990.22 0.00 1.59% Due 4/15/2020 Paydown 12/17/2018 47788BAD6 0.00 John Deere Owner Trust 2017-B A3 100.000 0.00 53.08 53.08 0.00 1.82% Due 10/15/2021 Paydown 12/17/2018 4778SCABS 14,923.28 John Deere Owner Trust 2018-A A2 100.000 14,923.28 331.92 15,255.20 0.00 2.42% Due 10/15/2020 Paydown 12/17/2018 47788CAC6 0.00 John Deere Owner Trust 2016-B A4 100.000 0.00 110.83 110.83 0.00 2.66% Due 4/18/2022 Paydown 12/17/2018 654747ABO 9,325.38 Nissan Auto Receivables 2017-A A2A 100.000 9,325.38 21.94 9,347.32 0.00 1.47% Due 1/15/2020 Chandler Asset Management- CONFIDENTIAL Page 10 Execution Time: 1/2/201910:13:32 PM City of West Covina Consolidated Transaction Ledger OR Account #10482 As of December 31, 2018 DISPOSITIONS r Paydown 12/17/2018 89237RAB4 21,816.38 Toyota Auto Receivable 2017-C A2A 100.000 21,816.38 242.16 22,058.54 0.00 1.58% Due 7/15/2020 Paydown 12/17/2018 89238BAB8 14,921.36 Toyota Auto Receivables Owner 2018-A 100.000 14,921.36 288.39 15,209.75 0.00 A2A 2.1% Due 10/15/2020 Paydown 12/26/2018 3137BFDQ1 0.00 FHLMC K717 A2 100.000 0.00 373.88 373.88 0.00 2.991% Due 9/25/2021 Subtotal 67,913.04 67,913.04 1,639.78 69,552.82 0.00 Maturity 12/14/2018 313376BR5 350,000.00 FHLB Note 100.000 350,000.00 0.00 350,000.00 0.00 1.75% Due 12/14/2018 Subtotal 350,000.00 350,000.00 0.00 350,000.00 0.00 Security 12/03/2018 31846V203 1,100,000.00 First American Govt Obligation Fund 1.000 1,100,000.00 0.00 1,100,000.00 0.00 Withdrawal Class Y Security 12/06/2018 31846V203 1,775.25 First American Govt Obligation Fund 1.000 1,775.25 0.00 1,775.25 0.00 Withdrawal Class Y Security 12/14/2018 31846V203 375,000.00 First American Govt Obligation Fund 1.000 375,000.00 0.00 375,000.00 0.00 Withdrawal Class Security 12/24/2018 31846V203 194.02 First American Govt Obligation Fund 1.000 194.02 0.00 194.02 0.00 Withdrawal Class Y Subtotal 1,476,969.27 1,476,969.27 0.00 1,476,969.27 0.00 TOTAL DISPOSITIONS 3,019,882.31 3,016,796.10 4,931.97 3,021,728.07 -5,687.09 OTHER TRANSACTIONS Interest 12/05/2018 437076BQ4 90,000.00 Home Depot Note 0.000 810.00 0.00 810.00 0.00 1.8% Due 6/5/2020 Interest 12/11/2018 313379RB7 350,000.00 FHLB Note 0.000 3,281.25 0.00 3,281.25 0.00 1.875% Due 6/11/2021 Interest 12/12/2018 313383HU8 350,000.00 FHLB Note 0.000 3,062.50 0.00 3,062.50 0.00 1.75% Due 6/12/2020 Interest 12/14/2018 31337613115 350,000.00 FHLB Note 0.000 3,062.50 0.00 3,062.50 0.00 1.75% Due 12/14/2018 Chandler Asset Manaaement- CONFIDENTIAL Paee 11 Execution Time: 1/2/201910:13:32 PM City of West Covina Consolidated Transaction Ledger OR Account #10482 As of December 31, 2018 Transaction Settlement Type Date OTHER TRANSACTIONS CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/sold Total Amount Gain/Loss Interest 12/22/2018 3135GOD75 700,000.00 FNMA Note 0.000 5,250.00 0.00 5,250.00 0.00 1.5% Due 6/22/2020 Interest 12/31/2018 912828G87 165,000.00 US Treasury Note 0.000 1,753.13 0.00 1,753.13 0.00 2.125% Due 12/31/2021 Interest 12/31/2018 91282BG95 750,000.00 US Treasury Note 0.000 6,093.75 0.00 6,093.75 0.00 1.625% Due 12/31/2019 Interest 12/31/2018 912828N48 250,000.00 US Treasury Note 0.000 2,187.50 0.00 2,187.50 0.00 1.75% Due 12/31/2020 Interest 12/31/2018 912828WS5 375,000.00 US Treasury Note 0.000 3,046.88 0.00 3,046.88 0.00 1.625% Due 6/30/2019 Interest 12/31/2018 912828XGO 365,000.00 US Treasury Note 0.000 3,878.13 0.00 3,878.13 0.00 2.125% Due 6/30/2022 Subtotal 3,745,000.00 32,425.64 0.00 32,425.64 0.00 Dividend 12/03/2018 31846V203 1,129,791.92 First American Govt Obligation Fund 0.000 221.01 0.00 221.01 0.00 Class Y Subtotal 1,129,791.92 221.01 0.00 221.01 0.00 TOTAL OTHER TRANSACTIONS 4,874,791.92 32,646.65 0.00 32,646.65 0.00 Chandler Asset Management- CONFIDENTIAL Page 12 Execution Time: 1/2/201910:13:32 PM Chandler Report December 2018 ATTACHMENT NO. 1 City of West Covina Investment Report For the Month Ended December 31, 2018 Description Cash and Cash Equivalents Wells Fargo Checking Account Pacific Western Bank Checking - HPP (CDBG) Pacific Western Bank Checking - HPP (LMIHF) Los Angeles County Investment Pool (LACIP) Money Market Fund - Bank of the West Investments - Chandler Asset Management Asset -Backed Securities Federal Agencies Collateralized Mortgage Obligation Money Market Funds Supranationals US Corporate US Treasury Total Cash and Investments Interest/ Yield to Maturity % of Book Value Market Value Maturity Date Portfolio $ 13,132,057 $ 13,132,057 0.00% n/a 27.40% 8,618 8,618 0.00 % n/a 0.02% 12,256 12,256 0.00 % n/a 0.03% 10,643,809 10,643,809 2.06% n/a 22.21% 504,243 504,243 0.59% n/a 1.05% 704,793 702,983 2.98% See attached 1.47% 7,260,683 7,124,970 2.58% See attached 14.87% 152,089 150,355 2.83% See attached 0.31% 105,022 105,022 2.05% See attached 0.22% 2,179,836 2,147,125 2.64% See attached 4.48% 6,136,614 6,037,394 3.03% See attached 12.60% 5,796,820 5,693,520 2.53% See attached 11.88% $ 46,636,840 $ 46,262,352 Bond Reserves Lease Revenue Bonds, 2006 Series A & 2006 Series B (Taxable) First American Treasury Obligations Fund Class D $ 1,071,000 $ 1,071,000 1.88 % n/a 2.24 % First American Treasury Obligations Fund Class D 585,372 585,372 1.88 % n/a 1.22 % Total Bond Reserves $ 1,656,372 $ 1,656,372 Total Investment Portfolio $ 48,293,212 $ 47,918,724 100.00% Blended Yield of Cash and Investments" 2.461/6 Benchmarks: LAIF 2.29% LACIP ` 2.06% 6mo U.S. Treasury 2.56% 2yr U.S. Treasury 2.48% 5 r U.S. Treasury 2.51% ' To ensure timely submission of the Investment Report, the prior month's tACIP percentage yield is used. I hereby certify that the investments are in compliance with the investment policy adopted by the City Council. The investment portfolio provides sufficient funds to meet the budgeted expenditures over the next six months. This report meets the requirements of Government Code Section 53646. PREPARED BY: j/(J�� Todd H. Owens - Accounting Manager APPROVED BY: Marcie Medina - Finance Director REVIEWED BY: Colleen B. Rozattl - City Treasurer ity of West Covina Consolidated - Account #10482 C DECEMBER 1, 2018 THROUGH DECEMBER 31, 2018 Chandler Team: For questions about your account, please call (800) 317-4747, or contact operations@chandlerasset.com Custodian US Bank Christopher Isles (503)464-3685 CHANDLER ASSET MANAGEMENT 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. City of West Covina Consolidated Portfolio Summary C11% Account #10482 As of December 31, 2018 PORTFOLIO CHARACTERISTICS ACCOUNT SUMMARY TOP ISSUERS Average Modified Duration 1.57 Beg. Values End Values Government of United States 25.9% as of 11/30/18 as of 12/31/18 Federal National Mortgage Assoc 15.8% Average Coupon 1.72% Market Value 23,282,434 21,961,369 Federal Home Loan Mortgage Corp 11.1% Average Purchase YTM 1.47% Accrued Interest 97866 , 92 769 Federal Home Loan Bank 6.2% Total Market Value 23,380,300 22,054,139 Average Market YTM 2.71% Income Earned 29,568 27,729 International Finance Corp 5.4% Average S&P/Moody Rating AA/Aa1 Cont/WD Inter -American Dev Bank 4.4% Par 23,723,778 22,281,301 Microsoft 2.7% Average Final Maturity 1.67 yrs Book Value 23,785,688 22,335,857 Eli Lilly & Co 2.3% Average Life 1.63 yrs Cost Value 23,941,617 22,471,902 Total 73.8% SECTOR ALLOCATION Abe 32.4% us corn 27.5% us Treasury 25.9% s.nraz_ 9.8% ABs, 3.2% cmol 0.1% Money Mkt FE 10.5% MATURITY DISTRIBUTION 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+ Maturity (Yrs) CREDIT QUALITY (S&P) AA (66.0%) A (17.1%) NR (3.5%) AAA (13.3%) Chandler Asset Management - CONFIDENTIAL Page 1 Execution Time: 1/2/201910:13:32 PM Statement of Compliance ORAs of December 31, 2018 City of West Covina Assets managed by Chandler Asset Management are in full compliance with state law and the District's investment policy. Category Standard Comment Treasury Issues No limitations Complies Federal Agencies No limitations Complies Municipal Securities "A" or higher by a NRSRO; 30% maximum; 5% max per issuer Complies Supranationals "AA" rated or higher by a NRSRO; 30% max; 10% max per issuer; Unsubordinated obligations issued by: IBRD, IFC, IADB Complies "A" rated or higher by a NRSRO; 30% maximum; 5% max per issuer; Issued by corporations organized and operating within Medium Term Notes Complies the U.S. Collateralized Certificates of Deposit 25%maximum Complies Negotiable Certificates of Deposit "A" rated or better by a NRSRO; 30% maximum Complies Banker's Acceptances 40% maximum; 30% max per one commercial bank; 180 days max maturity Complies A-1/P-1 rating or higher by both S&P and Moody's; 25% maximum; 5% per issuer; 270 days max maturity; Eligible paper is Commercial Paper limited to corporations organized and operating within the U.S. with total assets of at least $500 million Complies Asset -Backed Securities/ Mortgage- "AA" or better by a NRSRO; "A" rated issuer rating or higher by a NRSRO; 20% maximum Complies Backed Securities Money Market Mutual Funds "AAA" rated or highest rating by a NRSRO; 20% maximum; 10% per fund Complies Inverse floaters; Ranges notes, Interest -only strips from mortgaged backed securities; Zero interest accrual securities; Prohibited Securities Complies Reverse Repurchase Agreements Repurchase Agreements 20% maximum; 100 days max maturity; collateralized 102%of market value; Not used by investment adviser Complies Local Agency Investment Fund (LAIF) Maximum program; Not used by investment adviser Complies Los Angeles County Investment Pool Maximum program; Not used by investment adviser Complies Max per Security Type No more than 40%of the City's total portfolio shall be invested in a single security type or with a single financial institution Complies Max per Issuer No more than 5% in any single issuer except US Gov, Agencies, Supranationals, Money Market Funds, LAIF, or LGIP Complies Maximum Maturity 5 years Complies City of West Covina Consolidated Holdings Report OR Account #10482 As of December 31, 2018 Purchase Date Cost Va Mkt Price Market Value % of Port. Moody/S&P Maturity CUSIP enc 654747ABO Security Description Nissan Auto Receivables 2017-A A2A Par Value/Units 8,579.58 Book Yield 03/21/2017 BookVa !u: i 8,579.54 Mkt YTM 99.95 Accrued Int. 8,575.64 Gain/Loss 0.04% Fitch Aaa / NR Duration 1.04 1.47% Due 1/15/2020 1.47% 8,579.56 2.98% 5.60 (3.92) AAA 0.03 47788BABO John Deere Owner Trust 2017-B A2A 41,058.35 07/11/2017 41,054.79 99.81 40,979.90 0.19% Aaa / NR 1.29 1.59% Due 4/15/2020 1.60% 41,056.68 2.95% 29.01 (76.78) AAA 0.14 89237RAB4 Toyota Auto Receivable 2017-C A2A 162,106.06 07/25/2017 162,104.50 99.60 161,454.70 0.73% Aaa / AAA 1.54 1.58% Due 7/15/2020 1.59% 162,105.24 2.98% 113.84 (650.54) NR 0.29 89238BAB8 Toyota Auto Receivables Owner 2018-A 149,870.55 01/23/2018 149,855.23 99.61 149,286.49 0.68% Aaa / AAA 1.79 A2A 2.12% 149,860.42 3.07% 139.88 (573.93) NR 0.40 2.1% Due 10/15/2020 47788CAB8 John Deere Owner Trust 2018-A A2 149,664.46 Various 149,509.20 99.81 149,380.96 0.68% Aaa / NR 1.79 2.42% Due 10/15/2020 2.51% 149,556.65 2.94% 160.98 (175.69) AAA 0.38 43811BAC8 Honda Auto Receivables 2017-2 A3 110,000.00 04/27/2018 108,289.84 98.97 108,862.60 0.49% Aaa / AAA 2.63 1.68%Due 8/16/2021 2.62% 108,639.26 2.95% 82.13 223.34 NR 0.82 47788BAD6 John Deere Owner Trust 2017-B A3 35,000.00 07/11/2017 34,997.44 98.87 34,604.57 0.16% Aaa / NR 2.79 1.82%Due 10/15/2021 1.83% 34,998.32 2.99% 28.31 (393.75) AAA 0.97 47788CAC6 John Deere Owner Trust 2016-B A4 50,000.00 02/21/2018 49,996.41 99.68 49,838.05 0.23% Aaa / NR 3.30 2.66%Due 4/18/2022 2.68% 49,997.14 2.90% 59.11 (159.09) AAA 1.42 704,386.95 702,982.91 3.19% Aaa/AAA 1.98 Total ABS 706,279.00 2.14% 704,793.27 2.98% 618.86 (1,810.36) AAA 0.52 AGENCY l 3137EADK2 FHLMC Note 565,000.00 07/29/2016 570,938.15 99.17 560,298.07 2.55% Aaa / AA- 0.58 1.25%Due 8/1/2019 0.89% 566,146.53 2.70% 2,942.71 (5,848.46) AAA 0.57 3135GOP49 FNMA Note 700,000.00 09/02/2016 698,782.00 98.93 692,540.80 3.15% Aaa /AA+ 0.66 1% Due 8/28/2019 1.06% 699,731.96 2.66% 2,391.66 (7,191.16) AAA 0.65 3137EADM8 FHLMC Note 700,000.00 08/05/2016 706,153.00 98.97 692,766.90 3.15% Aaa / AA+ 0.75 1.25% Due 10/2/2019 0.97% 701,466.02 2.64% 2,163.20 (8,699.12) AAA 0.74 3137EAEE5 FHLMC Note 350,000.00 01/12/2017 349,622.00 98.88 346,074.05 1.58% Aaa / AA+ 1.05 1.5% Due 1/17/2020 1.54% 349,868.48 2.60% 2,391.67 (3,794.43) AAA 1.02 3135GOA78 FNMA Note 350,000.00 10/14/2016 355,204.50 99.00 346,516.45 1.58% Aaa /AA+ 1.06 1.625% Due 1/21/2020 1.16% 351,682.40 2.59% 2,527.78 (5,165.95) AAA 1.03 3137EADR7 FHLMC Note 350,000.00 06/29/2017 348,015.50 98.46 344,594.95 1.57% Aaa / AA+ 1.33 1.375% Due 5/1/2020 1.58% 349,069.05 2.56% 802.08 (4,474.10) AAA 1.31 Chandler Asset Manaeement- CONFIDENTIAL Paee 3 Execution Time: 1/2/201910:13:32 PM City of West Covina Consolidated Holdings Report Account #10482 As of December 31, 2018 AGENCY Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTIVI Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity DurationCUSIP 313383HUS FHLB Note 350,000.00 Various 358,197.50 98.85 345,962.40 1.57% Aaa /AA+ 1.45 1.75% Due 6/12/2020 1.12% 353,120.85 2.57% 323.27 (7,158.45) NR 1.42 3135GOD75 FNMA Note 700,000.00 07/29/2016 712,474.00 98.54 689,759.70 3.13% Aaa /AA+ 1.48 1.5% Due 6/22/2020 1.03% 704,712.78 2.52% 262.50 (14,953.08) AAA 1.45 3135GOF73 FNMA Note 350,000.00 07/29/2016 355,939.50 98.02 343,064.40 1.56% Aaa /AA+ 1.92 1.5% Due 11/30/2020 1.10% 352,619.38 2.57% 452.08 (9,554.98) AAA 1.87 313OA7CV5 FHLB Note 350,000.00 07/29/2016 353,846.50 97.68 341,864.95 1.56% Aaa / AA+ 2.14 1.375% Due 2/18/2021 1.13% 351,799.65 2.50% 1,777.95 (9,934.70) AAA 2.07 3135GOK69 FNMA Note 350,000.00 07/22/2016 349,744.50 97.10 339,860.15 1.54% Aaa /AA+ 2.35 1.25%Due 5/6/2021 1.27% 349,874.67 2.53% 668.40 (10,014.52) AAA 2.29 313379RB7 FHLB Note 350,000.00 08/15/2017 351,802.50 98.14 343,489.65 1.56% Aaa / AA+ 2.45 1.875% Due 6/11/2021 1.73% 351,152.57 2.67% 364.58 (7,662.92) AAA 2.37 313OA8QS5 FHLB Note 350,000.00 08/19/2016 347,452.00 96.58 338,017.40 1.54% Aaa / AA+ 2.54 1.125%Due 7/14/2021 1.28% 348,681.09 2.53% 1,826.56 (10,663.69) AAA 2.46 3137EAEC9 FHLMC Note 350,000.00 08/19/2016 346,720.50 96.58 338,032.45 1.54% Aaa / AA+ 2.62 1.125%Due 8/12/2021 1.32% 348,277.18 2.48% 1,520.31 (10,244.73) AAA 2.54 3135GOS38 FNMA Note 725,000.00 Various 728,871.25 98.52 714,272.18 3.27% Aaa /AA+ 3.02 2% Due 1/5/2022 1.88% 727,516.97 2.51% 7,088.89 (13,244.79) AAA 2.87 3135GOT45 FNMA Note 355,000.00 06/19/2017 354,946.40 97.99 347,855.63 1.58% Aaa /AA- 3.26 1.875% Due 4/5/2022 1.88% 354,963.55 2.52% 1,590.10 (7,107.92) AAA 3.12 7,288,709.80 7,124,970.13 32.44% Aaa / AA+ 1.69 Total Agency 7,245,000.00 1.28% 7,260,683.13 2.58% 29,093.74 (135,713.00) AAA 1.64 CIVIC, - 3137BFDQ1 FHLMC K717 A2 150,000.00 01/04/2018 152,835.94 100.24 150,354.90 0.68% NR/NR 2.74 2.991%Due 9/25/2021 1.91% 152,088.76 2.83% 373.88 (1,733.86) AAA 2.41 152,835.94 150,354.90 0.68% NR/NR 2.74 Total CMO 150,000.00 1.91% 152,088.76 2.83% 373.88 (1,733.86) AAA 2.41 Chandler Asset Management- CONFIDENTIAL Paee 4 Execution Time: 1/2/201910:13:32 PM City of West Covina Consolidated Holdings Report Account #10482 As of December 31, 2018 Security Description MONEY MARKET FUND FI Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTIVI Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity DurationCUSIP 31846V203 First American Govt Obligation Fund 105,022.12 Various 105,022.12 1.00 105,022.12 0.48% Aaa / AAA 0.00 Class Y 2.05% 105,022.12 2.05% 0.00 0.00 AAA 0.00 105,022.12 105,022.12 0.48% Aaa / AAA 0.00 Total Money Market Fund FI 105,022.12 2.05% 105,022.12 2.05% 0.00 0.00 AAA 0.00 SUPRANATIONAL 1 45950KCDO International Finance Corp Note 700,000.00 08/05/2016 715,554.00 99.33 695,303.70 3.17% Aaa / AAA 0.71 1.75% Due 9/16/2019 1.02% 703,538.74 2.71% 3,572.92 (8,235.04) NR 0.69 4581XOCX4 Inter -American Dev Bank Note 290,000.00 04/05/2017 289,312.70 98.72 286,281.33 1.30% Aaa/AAA 1.36 1.625% Due 5/12/2020 1.70% 289,696.64 2.59% 641.42 (3,415.31) AAA 1.33 4581XOCD8 Inter -American Dev Bank Note 350,000.00 08/05/2016 363,261.50 99.07 346,733.45 1.58% Aaa/AAA 1.86 2.125% Due 11/9/2020 1.21% 355,785.91 2.64% 1,074.31 (9,052.46) AAA 1.80 45950KCMO International Finance Corp Note 215,000.00 01/18/2018 214,367.90 99.34 213,588.96 0.98% Aaa / AAA 2.07 2.25% Due 1/25/2021 2.35% 214,564.57 2.58% 2,096.25 (975.61) NR 1.99 45950KCI7 International Finance Corp Note 275,000.00 11/09/2016 268,576.00 96.43 265,179.75 1.21% Aaa / AAA 2.55 1.125%Due 7/20/2021 1.64% 271,508.61 2.58% 1,383.59 (6,328.86) NR 2.48 4581XOCW6 Inter -American Dev Bank Note 345,000.00 01/10/2017 344,575.65 98.56 340,038.21 1.56% Aaa / NR 3.05 2.125% Due 1/18/2022 2.15% 344,741.35 2.62% 3,319.43 (4,703.14) AAA 2.90 2,195,647.75 2,147,125.40 9.79% Aaa/AAA 1.72 Total Supranational 2,175,000.00 1.53% 2,179,835.82 2.64% 12,087.92 (32,710.42) AAA 1.66 US CORPORATE 53245781`4 Eli Lilly & Co Note 500,000.00 09/08/2016 509,180.00 99.77 498,864.00 2.28% A2 / AA- 0.20 1.95% Due 3/15/2019 1.20% 500,734.00 3.04% 2,870.84 (1,870.00) A 0.20 91159HHH6 US Bancorp Callable Note Cont 500,000.00 07/12/2016 512,145.00 99.78 498,906.00 2.27% Al/A+ 0.32 3/25/2019 1.31% 501,365.42 2.89% 2,016.66 (2,459.42) AA- 0.31 2.2% Due 4/25/2019 594918BN3 Microsoft Note 410,000.00 08/01/2016 409,577.70 99.00 405,918.45 1.85% Aaa/AAA 0.60 1.1% Due 8/8/2019 1.14% 409,915.54 2.78% 1,791.47 (3,997.09) AA+ 0.59 Chandler Asset Management- CONFIDENTIAL Paee 5 Execution Time: 1/2/201910:13:32 PM