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HomeMy WebLinkAbout042120-06.1CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com INVESTMENT REPORT Period Ending March 31, 2020 Town of Danville SECTION 1 Economic Update SECTION 2 Account Profile SECTION 3 Portfolio Holdings SECTION 4 Transactions Table of Contents As of March 31, 2020 1 SECTION |Section 1 |Economic Update 2 Economic Update ▪ ▪ ▪ Financial markets have experienced significant turbulence, driven by a high level of uncertainty about the impact of the COVID-19 pandemic on the global economy.US Treasury yields have declined, amid a global flight to quality.At the end of the first quarter, the yield on 2-yearTreasuries was down 132 basis points year-to-date, and the yield on 10-yearTreasuries was down nearly 125 basis points. The S&P 500 index declined 20.0%in the first quarter. There are still many unknowns about the coronavirus including how widespread it will become, how long it will take to contain the virus, and the actual impact on economic activity.We believe containment efforts and supply chain disruptions will cause a sharp increase in unemployment and aswift and deep contraction in economicactivity. Financial markets will likely remain volatile overthe near term but we believe that large-scale global monetary and fiscal stimulus programs will help mitigate the longer-term impact of the pandemic. Notably, President Trump approved a $2 trillion economicrelief package on March 27,the largest fiscal stimulus package in US history. The Fed has taken a wide range of aggressive actions to help stabilize and provide liquidity to the financial markets. The Fed has lowered the fed funds target rate to a range of 0.0%-0.25% and said it will purchase Treasury and agency mortgage- backed securities in any amount needed to support smooth market functioning. Policymakers have established several facilities to help support the flow of credit to businesses and state and local governments including the Commercial Paper Funding Facility, Main Street Lending Facility, Money Market Mutual Fund Liquidity Facility, Municipal Liquidity Facility, Paycheck Protection Program Liquidity Facility, Primary Market Corporate Credit Facility, Secondary Market Corporate Credit Facility, and Term Asset-Backed Securities Loan Facility. The Fed has also provided short-term funding through large-scale repo operations and lowered the reserve requirement for depository institutions. Fed Chair Powell has indicated that the Fed will continue to act “forcefully, proactively, and aggressively” until the economy is solidly on a road to recovery. The slope of the Treasury yield curve steepened in March, though rates across the curve declined meaningfully.At March month-end, the yield on 10-year Treasuries was down 48 basis points to 0.67% while the yield on 2-year Treasuries was down 67 basis points to 0.25%. The yield on 3-month T-bills declined 121 basis points in March. The movement in yields has been driven by fears about the coronavirus and its potential impact on global economic growth and inflation expectations, as well as the cumulative 150 basis point cut to the fed funds target rate in March. 3 Employment U.S. nonfarm payrolls declined by 701,000 in March. Employment in leisure and hospitality was particularly weak with payrolls down 459,000. The U-3 unemployment rate increased to 4.4%in March from 3.5%in February, and the participation rate declined to 62.7% from 63.4%. A broader measure of unemployment called the U-6, which includes those who are marginally attached to the labor force and employed part time for economic reasons, increased to 8.7% from 7.0%. Wages rose 0.4%in March and were up 3.1%on year-over-year basis. The average workweek declined to 34.2 hours from 34.4hours. Notably, the establishment survey of payrolls and the household survey of unemployment were collected in the first half of March, which predates many of the business and school closures related to the pandemic. Source: US Department of Labor 0% 1% 2% 3% 4% 5% 6% -800 -600 -400 -200 0 200 400 600 Nonfarm Payrolls Unemployment Rate Th o u s a n d s Change in Nonfarm Payrolls and Unemployment Rate March 2015 -March 2020 Un e m p l o y m e n t R a t e 4 More than 6.6million people filed an initial claim forunemployment in the April 4 week, following nearly 6.9 million claims in the priorweek, and 3.3 million claims two weeks prior. Initial Claims for Unemployment Source: US Department of Labor 6,606 6,867 3,307 282 211 217 220 215 204 201 212 220 7,455 3,059 1,784 1,702 1,699 1,719 1,692 1,729 1,678 1,753 1,704 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 In t h o u s a n d s Initial Jobless Claims Continuing Claims Intitial Claims For Unemployment January 17, 2020 -April 03, 2020 5 Source: US Department of Labor Source: US Department of Commerce Inflation The ConsumerPrice Index (CPI) was up 1.5% year-over-year in March, down from 2.3%in February. Core CPI (CPI less food and energy) was up 2.1% year-over-year in March, down from 2.4%in February. The CPI data for March indicates that the initial net effect of the pandemic has been deflationary. The Personal Consumption Expenditures (PCE) index was up 1.8% year-over-year in February, unchanged from 1.8% year- over-year in January. Core PCE, which is the Fed's primary inflation gauge, was up 1.8% year-over-year in February versus 1.7% year-over-year in January. Core PCE was trending below the Fed’s 2.0% inflation target before the COVID-19 pandemic. 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% Personal Consumption Expenditures (PCE) PCE Price Deflator YOY % Change PCE Core Deflator YOY % Change YO Y ( % ) C h a n g e 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% Consumer Price Index (CPI) CPI YOY % Change Core CPI YOY % Change YO Y ( % ) C h a n g e 6 On a year-over-year basis, retail sales were up 4.3%in February versus 5.0%in January.On a month-over-month basis, retail sales excluding autos and gas fell 0.2%in February, well below expectations fora0.4% increase. Control group sales were flat in February, below expectations of a 0.4% gain. Several retail categories showed weakness in February including auto sales and gasoline, building materials, clothing stores, electronics &appliances. The impact of the coronavirus was only beginning to emerge in February but the outlook forretail sales in the coming months is under significant pressure. The Consumer Confidence Index remained fairly strong in March but declined to 120.0 from 132.6 in February. The cut-off date for the survey was March 19.Confidence was high going into the pandemic,but we expect to see a meaningful decline in the coming months. Source: US Department of Commerce Source: The Conference Board 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Retail Sales YOY % Change YO Y ( % ) C h a n g e 110 115 120 125 130 135 140 145 In d e x L e v e l Consumer Confidence Consumer 7 Source: The Conference Board Source: Federal Reserve Bank of Chicago Economic Activity The Leading EconomicIndicators index (LEI) rose amodest 0.1%in February, following a0.7% increase in January. The LEI was up 0.7%on ayear- over-year basis in February versus up 0.8% year-over-over in January. However, the Conference Board cautioned that the February index didn't reflect the impact of the COVID-19 pandemic and that the economy may have now entered a contraction. The Chicago Fed National Activity Index (CFNAI) improved to 0.16 in February from -0.33 in January.On a 3-month moving average basis, the CFNAI declined to -0.21 in February from -0.11 in January. The 3-month moving average is consistent with sub-par economic growth. -0.70 -0.50 -0.30 -0.10 0.10 0.30 0.50 0.70 Chicago Fed National Activity Index (CFNAI) 3 M o n t h A v e r a g e -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% Leading Economic Indicators (LEI) MO M ( % ) C h a n g e 8 Source: US Department of Commerce Source: S&P Housing 0 200 400 600 800 1000 1200 1400 1600 1800 MO M C h a n g e ( I n T h o u s a n d s o f U n i t s ) Housing Starts Multi Family Housing Starts Single Family Housing Starts 1.5% 2.5% 3.5% 4.5% 5.5% 6.5% 7.5% S&P/Case -Shiller 20 City Composite Home Price Index Y O Y ( % ) C h a n g e Housing starts remained strong in February at an annual rate of 1,599,000, exceeding the consensus forecast.On a month-over-month basis, single family starts rose 6.7%to an annualized rate of 1,072,000, while multi-family starts declined 14.9%to an annualized rate of 527,000. Low mortgage rates and a strong labor market were fueling housing activity heading into the COVID-19 crisis. According to the Case-Shiller20-City home price index, home prices were up 3.1% year-over-year in January, versus up 2.9% year-over-year in December, which suggests that pricing in the sector was gaining momentum prior to the pandemic. 9 Source: Institute for Supply Management Source: Federal Reserve Manufacturing The Institute for Supply Management (ISM) manufacturing index decreased to 49.1 in March from 50.1 in February. The sub-50.0 reading suggests that the manufacturing sector is in contraction but it was stronger than the consensus estimate of 44.0. The Industrial Production index was up 0.04% year-over-year in February.In January, the index was down 1.02% year-over-year.On amonth-over-month basis, the index was up 0.6%in February following a 0.5% decline in January. The Boeing 737 Max shutdown weighed on production in both months but there was alarge gain in auto production in February. Capacity Utilization increased to 77.0%in February from 76.6%in January,but remained below the long-run average of 79.8% indicating there was still excess capacity for growth. 46 48 50 52 54 56 58 60 62 64 Institute of Supply Management Purchasing Manager Index EXPANDING CONTRACTING -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Industrial Production YO Y ( % ) C h a n g e 10 Source: US Department of Commerce Source: US Department of Commerce 3/19 6/19 9/19 12/19 0.8% 3.0% 2.1% 1.2% 1.1% -1.2% -0.2% -1.1% 0.7% -0.7% -0.1% 1.5% 0.1% 0.5% 0.2% 0.2% 0.4% 0.3% 0.1% 0.2% 3.1% 2.0% 2.1% 2.1% Gross Private Domestic Investment Personal Consumption Expenditures Components of GDP Federal Government Expenditures State and Local (Consumption and Gross Investment) Net Exports and Imports Total 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Gross Domestic Product (GDP) Fourth quarter 2019 GDP grew at a2.1% annualized rate,in line with expectations. This follows growth of 2.1%in the third quarter, 2.0%in the second quarter, and 3.1%in the first quarter. Overall, GDP grew 2.3%in 2019,down from 2.9%in 2018.Fourth quartergrowth was fueled by net exports and consumerspending which contributed 1.5% and 1.2%to GDP in the quarter, respectively, while gross private domesticinvestment was adrag on the economy.We believe the economy was expanding at amoderate pace at the beginning of this year but containment efforts related to the COVID-19 pandemic have almost certainly resulted in a steep contraction in US economic activity beginning in early March. 11 Federal Reserve Source: Federal Reserve Source: Bloomberg The Fed has taken a wide range of aggressive actions this month to help stabilize and provide liquidity to the financial markets. The Fed has lowered the fed funds target rate to a range of 0.0%-0.25% and said it will purchase Treasury and agency mortgage-backed securities in any amount needed to support smooth market functioning. Policymakers reinstated the Commercial Paper Funding Facility and Money Market Mutual Fund Liquidity Facility in order to provide liquidity to the commercial paper, money markets, and the municipal bond markets. The Fed has established the Primary Market Corporate Credit Facility and Secondary Market Corporate Credit Facility to support the corporate bond market. The Term Asset-Backed Securities Loan Facility has been established to enable the issuance of asset-backed securities backed by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration. The Fed has established the Paycheck Protection Program Liquidity Facility and Fed’s Main Street Lending Facility which will support the flow of credit to businesses. The Fed established the Municipal Liquidity Facility to purchase short-term debt directly from US states, counties, and cities. The Fed has also provided short-term funding through large-scale repo operations and lowered the reserve requirement for depository institutions. 3,700,000 4,200,000 4,700,000 5,200,000 5,700,000 6,200,000 6,700,000 Federal Reserve Balance Sheet Assets In $ m i l l i o n s 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% Effective Federal Funds Rate Yi e l d ( % ) 12 Source: Bloomberg Source: Bloomberg 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% US Treasury Note Yields 2-Year 5-Year 10-Year Y i e l d ( % ) 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% US Treasury Yield Curve Mar-20 Dec-19 Mar-19 Y i e l d ( % ) Bond Yields At March month-end, Treasury yields were much lower on a year-over-year basis. The 3-month T-bill yield was down 232 basis points, the 2- year Treasury yield was down 202 basis points, and the 10-Year Treasury yield was down 174 basis points, year-over-year. Much of the spread movement was in the month of March, with the Fed cutting rates by a total of 150 basis points and concerns about a global recession and a flight to safe-haven assets driving down yields across the curve. 13 Section 2|SECTION |Section 2 |Account Profile 14 Objectives Chandler Asset Management Performance Objective The performance objective is to achieve a return that equals the return on an unmanaged index of one-to- three year Treasury securities (a “market rate of return”). Investment Objectives The primary investment objectives of the Town of Danville are to preserve principal and to maintain adequate liquidity to meet the Town’s cash flow requirements.The Town expects to achieve a rate of return which is consistent with its primary objectives. Strategy In order to meet its objectives,the Town invests in securities permitted under California Government Code Section 53600 et seq.and under its Investment Policy.The maximum maturity of the Town’s investments is five years,unless specifically authorized by the Town Council. As of March 31, 2020 15 Compliance As of March 31, 2020 Category Standard Comment Treasury Issues No Limit; Obligations of the U.S. Treasury or securities guaranteed by the full faith and credit of the U.S. ("Treasury obligations") excluding securities which have been stripped of their coupon Complies Agency Issues No Limit; Obligations guaranteed by the full faith and credit of agencies or instrumentalities of the U.S. government ("Agency obligations"), including, but not limited to FNMA, FFCB, FHLB, FHLMC.Complies Municipal Securities "A" rating category or better by a NRSRO; 30% maximum; 5% per issuer; Obligations of the Town, State of California, and any local agency within the State of California; any of the other 49 states, in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. Complies Supranational Securities "AA" rated category or higher by a NRSRO; 30% maximum; 5% max per issuer; U.S. dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development ("IBRD"), the International Finance Corporation ("IFC") or the Inter-American Development Bank ("IADB") Complies Banker’s Acceptances "A-1" short-term rated or higher by a NRSRO; and "A" long-term rated category or higher by a NRSRO; 40% maximum; 5% max per issuer; 180 days max maturity Complies Commercial Paper "A-1" short-term rated or higher by a NRSRO; and "A" long-term rated category or higher by a NRSRO, if any; 25% maximum; 5% max per issuer; 270 days max maturity; Issued by corporations organized and operating within the U.S. and having total assets in excess of $500 million Complies Negotiable CDs "A-1" short-term rated or higher by a NRSRO; and "A" long-term rated category or higher by a NRSRO; 30% maximum; 5% max per issuer; 2 years max maturity Complies Corporate Medium Term Notes "A" rated category or higher by a NRSRO; 30% maximum (Town Council Directive as of 7/21/16: 20% maximum. Of the 20% total permitted, up to 10% rated "A", and the balance rated "AA" or better); 5% max per issuer Complies Mortgage Pass-Through Securities 15% maximum; 5% per issuer; Issued by Agencies of the U.S. government only Complies Collateralized Mortgage Obligation (CMOs) and Asset Backed Securities (ABS)AAA rated by a NRSRO; 15% maximum (combination of ABS and CMOs); 5% max per issuer Complies Bank/Time Deposits FDIC insured/ Collateralized Complies Money Market Mutual Funds and Mutual Funds Highest rating or "AAA" rated by two NRSROs; SEC registered adviser with AUM >$500 million and experience greater than 5 years; 10% max per one Mutual Fund; 20% maximum in Money Market Mutual Funds; 20% maximum combined of total portfolio in these securities.Complies Repurchase Agreements 15% maximum; 102% collateralized; 30 days max maturity; Not used by Investment Adviser Complies Local Agency Investment Fund (LAIF)30% maximum or $10 million, whichever is higher; The amount invested in LAIF should be based upon the Town's cash flow needs and the difference in yield paid upon funds invested in LAIF compared to other investment options authorized by the policy.Complies Prohibited Inverse floaters, Range notes, Mortgage-derived, Interest-only strips; Zero interest accrual securities; Purchasing/Selling securities on Margin; Reverse Repurchase Agreements; Securities lending; Foreign currency denominated securities Complies Max Per Issuer 5% max per issuer (except LAIF, Treasuries, Agencies, Money Market Mutual Funds, LAIF); or unless otherwise stated in the investment policy Complies Maximum maturity 5 years Complies Assets managed by Chandler Asset Management are in full compliance with state law and the Client’s investment policy. Town of Danville - All Accounts 16 Portfolio Characteristics Danville Short Term Treasury Pool 3/31/2020 12/31/2019 Benchmark*Portfolio Portfolio Average Maturity (yrs)1.85 1.89 1.86 Average Modified Duration 1.81 1.76 1.73 Average Purchase Yield n/a 2.08%2.10% Average Market Yield 0.20%0.66%1.69% Average Quality**AAA AA+/Aa1 AA+/Aa1 Total Market Value 71,001,742 72,712,000 *ICE BAML 1-3 Yr US Treasury Index **Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively. As of March 31, 2020 17 Danville Short Term Treasury Pool Sector Distribution ABS 3.7% Agency 39.5% Corporate 16.2% LAIF 0.1% Money Market Fund FI 0.2% Supranational 6.9% US Treasury 31.3% Commercial Paper 2.0% March 31, 2020 December 31, 2019 ABS 3.1% Agency 40.5% Corporate 16.9% LAIF 0.1% Money Market Fund FI 0.4% Supranational 6.7% US Treasury 32.3% As of March 31, 2020 18 Issue Name Investment Type % Portfolio Government of United States US Treasury 31.35% Federal Home Loan Bank Agency 21.85% Federal National Mortgage Association Agency 12.66% Federal Farm Credit Bank Agency 5.03% Inter-American Dev Bank Supranational 3.36% Apple Inc Corporate 2.18% Intl Bank Recon and Development Supranational 2.12% Honda ABS ABS 1.99% MUFG Bank Ltd/NY Commercial Paper 1.97% Berkshire Hathaway Corporate 1.48% BlackRock Inc/New York Corporate 1.46% Oracle Corp Corporate 1.45% International Finance Corp Supranational 1.43% Toyota Motor Corp Corporate 1.43% Honda Motor Corporation Corporate 1.39% PNC Financial Services Group Corporate 1.29% Wal-Mart Stores Corporate 1.21% State Street Bank Corporate 1.13% US Bancorp Corporate 1.09% Bank of New York Corporate 1.09% John Deere ABS ABS 0.90% Nissan ABS ABS 0.81% Paccar Financial Corporate 0.69% ChevronTexaco Corp Corporate 0.37% Wells Fargo Adv Tsy Plus Money Market Fund Money Market Fund FI 0.17% Local Agency Investment Fund LAIF 0.11% TOTAL 100.00% Issuers Danville Short Term Treasury Pool –Account #21 As of March 31, 2020 19 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ March 31, 2020 December 31, 2019 March 31, 2020 vs. December 31, 2019 0 -0.25 0.25 -0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 03/31/20 10.1%9.9%12.3%23.9%30.8%12.9%0.0%0.0% 12/31/19 9.6%8.1%16.9%21.1%31.0%13.2%0.0%0.0% Danville Short Term Treasury Pool Duration Distribution As of March 31, 2020 20 Purchase Yield as of 3/31/2020 = 2.08% 1.0 1.2 1.4 1.6 1.8 2.0 2.2 Pe r c e n t ( % ) Historical Average Purchase Yield Danville Short Term Treasury Pool As of March 31, 2020 21 Growth of $1 Million Growth Over Time As of March 31, 2020 As of 03/31/2020 Dollar Value Return Danville Total Return $2,521,845 3.77% Danville Realized Return $2,421,102 3.60% LAIF $1,971,129 2.75% Historical Return of $1 Million Invested on March 31, 1995 22 Total and Realized Rate of Return Annualized Since Inception 03/31/1995 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.Realized rate of return: A measure of a portfolio’s return over time.It is the internal rate which equates the beginning book value of the portfolio with the ending book value;it includes interest earnings,realized gains and losses in the portfolio. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 12 months 2 years 3 years 5 years 10 years Since Inception Danville Short Term Treasury Pool ICE BAML 1-3 Yr US Treasury Index Annualized TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception Danville Short Term Treasury Pool 1.99%4.70%3.79%2.65%1.90%1.60%3.77% ICE BAML 1-3 Yr US Treasury Index 2.81%5.42%4.06%2.70%1.85%1.43%3.54% REALIZED RATE OF RETURN Danville Short Term Treasury Pool 0.55%2.10%1.93%1.75%1.49%1.54%3.60% Investment Performance Danville Short Term Treasury Pool As of March 31, 2020 23 Portfolio Characteristics Danville NERIAD Improvement Fund (89-1 90A) 3/31/2020 12/31/2019 Benchmark*Portfolio Portfolio Average Maturity (yrs)0.16 0.33 0.54 Average Modified Duration 0.16 0.32 0.53 Average Purchase Yield n/a 1.50%2.06% Average Market Yield 0.08%0.12%1.85% Average Quality**AAA AAA/Aaa AAA/Aaa Total Market Value 864,032 856,385 *ICE BAML 3-Month US Treasury Bill Index **Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively. As of March 31, 2020 24 Issue Name Investment Type % Portfolio Government of United States US Treasury 74.31% Wells Fargo Adv Tsy Plus Money Market Fund Money Market Fund FI 20.26% Federal Farm Credit Bank Agency 5.43% TOTAL 100.00% Issuers Danville NERIAD Improvement Fund (89-1 90A) –Account #24 As of March 31, 2020 25 SECTION |Section 3 |Portfolio Holdings 26 Holdings Report Danville Short Term Treasury Pool -Account #21 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration ABS 43814UAG4 Honda Auto Receivables Trust 2018-2 A3 3.010% Due 05/18/2022 260,680.78 05/22/2018 3.03% 260,675.10 260,677.73 100.59 2.11% 262,207.31 283.35 0.37% 1,529.58 NR / AAA AAA 2.13 0.64 43815HAC1 Honda Auto Receivables Trust 2018-3 A3 2.950% Due 08/22/2022 606,982.23 08/21/2018 2.98% 606,898.95 606,932.26 100.92 1.70% 612,566.43 497.39 0.86% 5,634.17 Aaa / NR AAA 2.39 0.72 43815NAC8 Honda Auto Receivables Trust 2019-3 A3 1.780% Due 08/15/2023 535,000.00 08/20/2019 1.79% 534,995.56 534,996.43 100.53 1.50% 537,825.34 423.24 0.76% 2,828.91 Aaa / AAA NR 3.38 1.86 477870AC3 John Deere Owner Trust 2019-B A3 2.210% Due 12/15/2023 275,000.00 07/16/2019 2.23% 274,941.62 274,950.79 100.82 1.74% 277,247.30 270.11 0.39% 2,296.51 Aaa / NR AAA 3.71 1.69 65479JAD5 Nissan Auto Receivables Owner 2019-C A3 1.930% Due 07/15/2024 570,000.00 10/16/2019 1.94% 569,969.90 569,972.71 100.99 1.49% 575,620.20 488.93 0.81% 5,647.49 Aaa / AAA NR 4.29 2.18 47789KAC7 John Deere Owner Trust 2020-A A3 1.100% Due 08/15/2024 370,000.00 03/04/2020 1.11% 369,977.39 369,977.68 98.17 1.87% 363,221.60 226.11 0.51% (6,756.08) Aaa / NR AAA 4.38 2.39 TOTAL ABS 2,617,663.01 2.18% 2,617,458.52 2,617,507.60 1.68% 2,628,688.18 2,189.13 3.71% 11,180.58 Aaa / AAA Aaa 3.40 1.60 Agency 3130AECJ7 FHLB Note 2.625% Due 05/28/2020 1,500,000.00 05/30/2018 2.45% 1,505,160.00 1,500,404.01 100.36 0.41% 1,505,343.00 13,453.13 2.14% 4,938.99 Aaa / AA+ AAA 0.16 0.16 3135G0D75 FNMA Note 1.500% Due 06/22/2020 1,500,000.00 10/19/2015 1.44% 1,503,954.00 1,500,189.94 100.28 0.25% 1,504,210.50 6,187.50 2.13% 4,020.56 Aaa / AA+ AAA 0.23 0.22 3130A5Z77 FHLB Note 1.830% Due 07/29/2020 1,500,000.00 10/23/2015 1.52% 1,521,315.00 1,501,459.43 100.51 0.28% 1,507,614.00 4,727.50 2.13% 6,154.57 Aaa / AA+ AAA 0.33 0.33 3133EHW58 FFCB Note 1.900% Due 11/27/2020 350,000.00 11/21/2017 1.97% 349,279.00 349,842.12 101.08 0.25% 353,789.45 2,290.56 0.50% 3,947.33 Aaa / AA+ AAA 0.66 0.65 3130A3UQ5 FHLB Note 1.875% Due 12/11/2020 1,500,000.00 01/27/2016 1.58% 1,520,355.00 1,502,912.77 101.10 0.29% 1,516,513.50 8,593.75 2.15% 13,600.73 Aaa / AA+ NR 0.70 0.69 3133EJT74 FFCB Note 3.050% Due 11/15/2021 1,600,000.00 12/11/2018 2.87% 1,607,984.00 1,604,428.92 104.20 0.45% 1,667,142.40 18,435.56 2.37% 62,713.48 Aaa / AA+ AAA 1.63 1.58 3130AAB49 FHLB Note 1.875% Due 12/10/2021 1,000,000.00 12/15/2017 2.16% 989,100.00 995,363.94 102.40 0.45% 1,024,019.00 5,781.25 1.45% 28,655.06 Aaa / AA+ AAA 1.70 1.66 3135G0S38 FNMA Note 2.000% Due 01/05/2022 1,400,000.00 09/27/2017 1.90% 1,405,418.00 1,402,238.10 102.87 0.37% 1,440,114.20 6,688.89 2.04% 37,876.10 Aaa / AA+ AAA 1.77 1.73 3135G0U92 FNMA Note 2.625% Due 01/11/2022 1,000,000.00 02/13/2019 2.58% 1,001,160.00 1,000,709.98 103.87 0.44% 1,038,685.00 5,833.33 1.47% 37,975.02 Aaa / AA+ AAA 1.78 1.74 As of March 31, 2020 27 Holdings Report Danville Short Term Treasury Pool -Account #21 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 3130AEBM1 FHLB Note 2.750% Due 06/10/2022 1,475,000.00 Various 2.84% 1,470,268.25 1,472,362.44 105.14 0.39% 1,550,820.90 12,506.77 2.20% 78,458.46 Aaa / AA+ NR 2.19 2.12 3135G0W33 FNMA Note 1.375% Due 09/06/2022 1,525,000.00 Various 1.55% 1,517,278.00 1,518,670.43 102.41 0.38% 1,561,754.03 1,456.16 2.20% 43,083.60 Aaa / AA+ AAA 2.44 2.39 313383WD9 FHLB Note 3.125% Due 09/09/2022 1,000,000.00 11/05/2018 3.10% 1,000,830.00 1,000,527.11 106.63 0.39% 1,066,341.00 1,909.72 1.50% 65,813.89 Aaa / AA+ AAA 2.44 2.36 3133EKY91 FFCB Note 1.375% Due 10/11/2022 1,500,000.00 10/15/2019 1.64% 1,488,585.00 1,490,342.76 101.18 0.90% 1,517,748.00 9,739.58 2.15% 27,405.24 Aaa / AA+ AAA 2.53 2.47 3130A3KM5 FHLB Note 2.500% Due 12/09/2022 1,250,000.00 08/27/2018 2.80% 1,235,000.00 1,240,581.84 105.41 0.47% 1,317,601.25 9,722.22 1.87% 77,019.41 Aaa / AA+ NR 2.69 2.59 3130AFE78 FHLB Note 3.000% Due 12/09/2022 1,700,000.00 12/20/2018 2.77% 1,714,756.00 1,710,000.27 106.63 0.51% 1,812,684.50 15,866.67 2.58% 102,684.23 Aaa / AA+ AAA 2.69 2.58 3135G0T94 FNMA Note 2.375% Due 01/19/2023 1,500,000.00 03/18/2019 2.46% 1,495,455.00 1,496,683.64 105.39 0.44% 1,580,847.00 7,125.00 2.24% 84,163.36 Aaa / AA+ AAA 2.81 2.71 3130ADRG9 FHLB Note 2.750% Due 03/10/2023 900,000.00 03/28/2019 2.24% 917,136.00 912,750.99 106.67 0.47% 959,990.40 1,443.75 1.35% 47,239.41 Aaa / AA+ NR 2.94 2.84 3133834G3 FHLB Note 2.125% Due 06/09/2023 1,500,000.00 06/10/2019 2.00% 1,507,305.00 1,505,827.98 105.54 0.38% 1,583,083.50 9,916.67 2.24% 77,255.52 Aaa / AA+ NR 3.19 3.08 3135G0V34 FNMA Note 2.500% Due 02/05/2024 1,700,000.00 03/24/2020 0.82% 1,808,052.00 1,807,516.33 107.57 0.51% 1,828,640.70 6,611.11 2.58% 21,124.37 Aaa / AA+ AAA 3.85 3.67 3130A7PH2 FHLB Note 1.875% Due 03/08/2024 1,500,000.00 03/03/2020 0.85% 1,560,525.00 1,559,368.21 105.81 0.39% 1,587,079.50 1,796.88 2.24% 27,711.29 Aaa / AA+ NR 3.94 3.81 TOTAL Agency 26,900,000.00 2.04% 27,118,915.25 27,072,181.21 0.43% 27,924,021.83 150,086.00 39.54% 851,840.62 Aaa / AA+ Aaa 2.11 2.04 Commercial Paper 62479LDV4 MUFG Bank Ltd Discount CP 1.680% Due 04/29/2020 1,400,000.00 01/30/2020 1.71% 1,394,185.33 1,394,185.33 99.58 1.71% 1,394,185.33 3,985.34 1.97% 0.00 P-1 / A-1 NR 0.08 0.08 TOTAL Commercial Paper 1,400,000.00 1.71% 1,394,185.33 1,394,185.33 1.71% 1,394,185.33 3,985.34 1.97% 0.00 P-1 / A-1 NR 0.08 0.08 Corporate 857477AS2 State Street Bank Note 2.550% Due 08/18/2020 800,000.00 05/22/2017 1.90% 816,280.00 801,916.10 100.16 2.11% 801,296.00 2,436.67 1.13% (620.10) A1 / A AA- 0.38 0.38 69353REW4 PNC Bank Callable Note Cont 3/30/2021 2.150% Due 04/29/2021 910,000.00 04/03/2018 3.01% 887,257.00 902,019.65 100.03 2.11% 910,302.12 8,260.78 1.29% 8,282.47 A2 / A A+ 1.08 0.98 As of March 31, 2020 28 Holdings Report Danville Short Term Treasury Pool -Account #21 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 09247XAH4 Blackrock Inc Note 4.250% Due 05/24/2021 1,000,000.00 04/27/2018 3.03% 1,035,570.00 1,013,275.23 102.33 2.18% 1,023,295.00 14,993.06 1.46% 10,019.77 Aa3 / AA- NR 1.15 1.10 037833CC2 Apple Inc Callable Note Cont 7/4/2021 1.550% Due 08/04/2021 750,000.00 11/21/2017 2.33% 729,450.00 742,535.58 100.62 1.05% 754,627.50 1,840.63 1.07% 12,091.92 Aa1 / AA+ NR 1.35 1.24 084664BT7 Berkshire Hathaway Note 3.000% Due 05/15/2022 1,000,000.00 03/16/2018 2.98% 1,000,670.00 1,000,341.85 103.87 1.15% 1,038,727.00 11,333.33 1.48% 38,385.15 Aa2 / AA A+ 2.12 2.04 68389XBB0 Oracle Corp Callable Note Cont 3/15/2022 2.500% Due 05/15/2022 1,000,000.00 10/09/2019 1.86% 1,016,200.00 1,013,240.55 101.71 1.60% 1,017,124.00 9,444.44 1.45% 3,883.45 A3 / A+ A- 2.12 1.89 69371RQ33 Paccar Financial Corp Note 2.000% Due 09/26/2022 500,000.00 09/23/2019 2.04% 499,390.00 499,494.64 98.51 2.62% 492,538.00 138.89 0.69% (6,956.64) A1 / A+ NR 2.49 2.41 166764AB6 Chevron Corp Callable Note Cont 9/5/2022 2.355% Due 12/05/2022 255,000.00 06/19/2019 2.28% 255,606.90 255,469.95 101.37 1.77% 258,492.74 1,935.03 0.37% 3,022.79 Aa2 / AA NR 2.68 2.34 89236TEL5 Toyota Motor Credit Corp Note 2.700% Due 01/11/2023 1,000,000.00 01/25/2019 3.22% 980,920.00 986,579.21 100.61 2.47% 1,006,100.00 6,000.00 1.43% 19,520.79 A1 / AA- A+ 2.78 2.65 90331HNL3 US Bank NA Callable Note Cont 12/23/22 2.850% Due 01/23/2023 750,000.00 04/29/2019 2.77% 752,190.00 751,648.92 102.37 1.95% 767,793.00 4,037.50 1.09% 16,144.08 A1 / AA- AA- 2.82 2.61 06406RAE7 Bank of NY Mellon Corp Callable Note Cont 12/29/2022 2.950% Due 01/29/2023 750,000.00 07/25/2019 2.37% 764,625.00 761,802.83 102.24 2.11% 766,763.25 3,810.42 1.09% 4,960.42 A1 / A AA- 2.83 2.62 037833AK6 Apple Inc Note 2.400% Due 05/03/2023 750,000.00 05/29/2019 2.54% 746,205.00 747,015.38 104.26 1.00% 781,912.50 7,400.00 1.11% 34,897.12 Aa1 / AA+ NR 3.09 2.96 931142EK5 Wal-Mart Stores Callable Note Cont 5/26/2023 3.400% Due 06/26/2023 800,000.00 03/27/2019 2.54% 827,616.00 821,041.61 106.06 1.43% 848,441.60 7,177.78 1.21% 27,399.99 Aa2 / AA AA 3.24 2.98 02665WCT6 American Honda Finance Note 3.550% Due 01/12/2024 950,000.00 08/19/2019 2.07% 1,008,634.00 1,000,450.81 103.20 2.65% 980,434.20 7,400.76 1.39% (20,016.61) A3 / A NR 3.79 3.50 TOTAL Corporate 11,215,000.00 2.54% 11,320,613.90 11,296,832.31 1.87% 11,447,846.91 86,209.29 16.24% 151,014.60 A1 / AA- A+ 2.25 2.10 LAIF 90LAIF$00 Local Agency Investment Fund State Pool 75,270.35 Various 1.74% 75,270.35 75,270.35 1.00 1.74% 75,270.35 391.18 0.11% 0.00 NR / NR NR 0.00 0.00 TOTAL LAIF 75,270.35 1.74% 75,270.35 75,270.35 1.74% 75,270.35 391.18 0.11% 0.00 NR / NR NR 0.00 0.00 As of March 31, 2020 29 Holdings Report Danville Short Term Treasury Pool -Account #21 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration Money Market Fund FI 94975H296 Wells Fargo Treasury Plus MMFD 453 119,010.69 Various 0.22% 119,010.69 119,010.69 1.00 0.22% 119,010.69 0.00 0.17% 0.00 Aaa / AAA NR 0.00 0.00 TOTAL Money Market Fund FI 119,010.69 0.22% 119,010.69 119,010.69 0.22% 119,010.69 0.00 0.17% 0.00 Aaa / AAA NR 0.00 0.00 Supranational 4581X0CX4 Inter-American Dev Bank Note 1.625% Due 05/12/2020 1,240,000.00 04/05/2017 1.70% 1,237,061.20 1,239,892.99 100.16 0.26% 1,241,931.92 7,780.14 1.76% 2,038.93 Aaa / AAA AAA 0.12 0.11 459058GA5 Intl. Bank Recon & Development Note 1.625% Due 09/04/2020 1,500,000.00 08/22/2017 1.63% 1,499,685.00 1,499,955.41 100.46 0.55% 1,506,864.00 1,828.13 2.12% 6,908.59 Aaa / AAA AAA 0.43 0.42 45950KCM0 International Finance Corp Note 2.250% Due 01/25/2021 1,000,000.00 Various 2.35% 997,047.20 999,193.98 101.40 0.53% 1,014,010.00 4,125.00 1.43% 14,816.02 Aaa / AAA NR 0.82 0.81 4581X0CN6 Inter-American Dev Bank Note 1.750% Due 04/14/2022 1,100,000.00 09/13/2018 2.99% 1,054,218.00 1,073,934.08 102.42 0.55% 1,126,581.50 8,929.86 1.60% 52,647.42 Aaa / AAA AAA 2.04 1.99 TOTAL Supranational 4,840,000.00 2.11% 4,788,011.40 4,812,976.46 0.47% 4,889,387.42 22,663.13 6.92% 76,410.96 Aaa / AAA Aaa 0.80 0.79 US Treasury 912828VA5 US Treasury Note 1.125% Due 04/30/2020 1,325,000.00 11/02/2016 1.08% 1,326,919.48 1,325,043.69 100.08 0.13% 1,326,102.40 6,252.34 1.88% 1,058.71 Aaa / AA+ AAA 0.08 0.08 912828XM7 US Treasury Note 1.625% Due 07/31/2020 1,500,000.00 10/19/2015 1.32% 1,520,922.99 1,501,449.99 100.50 0.13% 1,507,500.00 4,084.82 2.13% 6,050.01 Aaa / AA+ AAA 0.33 0.34 912828L32 US Treasury Note 1.375% Due 08/31/2020 1,200,000.00 01/30/2017 1.66% 1,188,238.40 1,198,633.21 100.53 0.10% 1,206,374.40 1,434.78 1.70% 7,741.19 Aaa / AA+ AAA 0.42 0.42 912828L65 US Treasury Note 1.375% Due 09/30/2020 500,000.00 04/25/2017 1.61% 496,095.43 499,432.86 100.66 0.06% 503,281.00 18.78 0.71% 3,848.14 Aaa / AA+ AAA 0.50 0.50 912828WC0 US Treasury Note 1.750% Due 10/31/2020 1,300,000.00 12/22/2015 1.73% 1,301,121.54 1,300,134.66 100.97 0.09% 1,312,594.40 9,562.50 1.86% 12,459.74 Aaa / AA+ AAA 0.59 0.58 912828M98 US Treasury Note 1.625% Due 11/30/2020 1,200,000.00 02/27/2017 1.66% 1,198,457.15 1,199,726.54 101.03 0.08% 1,212,374.40 6,553.28 1.72% 12,647.86 Aaa / AA+ AAA 0.67 0.66 912828Q37 US Treasury Note 1.250% Due 03/31/2021 1,500,000.00 06/15/2017 1.64% 1,478,501.12 1,494,345.67 101.12 0.13% 1,516,816.50 51.23 2.14% 22,470.83 Aaa / AA+ AAA 1.00 1.00 912828Q78 US Treasury Note 1.375% Due 04/30/2021 1,500,000.00 06/08/2017 1.65% 1,484,536.28 1,495,712.38 101.33 0.14% 1,519,980.00 8,669.30 2.15% 24,267.62 Aaa / AA+ AAA 1.08 1.07 As of March 31, 2020 30 Holdings Report Danville Short Term Treasury Pool -Account #21 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 912828T34 US Treasury Note 1.125% Due 09/30/2021 1,250,000.00 01/10/2018 2.20% 1,202,392.58 1,230,809.68 101.38 0.21% 1,267,187.50 38.42 1.78% 36,377.82 Aaa / AA+ AAA 1.50 1.49 912828F96 US Treasury Note 2.000% Due 10/31/2021 1,500,000.00 08/29/2018 2.76% 1,465,781.25 1,482,905.41 102.82 0.21% 1,542,304.50 12,609.89 2.19% 59,399.09 Aaa / AA+ AAA 1.59 1.55 912828W55 US Treasury Note 1.875% Due 02/28/2022 1,300,000.00 02/08/2018 2.49% 1,269,226.56 1,285,486.58 103.17 0.21% 1,341,234.70 2,119.57 1.89% 55,748.12 Aaa / AA+ AAA 1.92 1.89 912828W89 US Treasury Note 1.875% Due 03/31/2022 1,250,000.00 10/24/2017 1.98% 1,244,580.08 1,247,558.02 103.31 0.22% 1,291,357.50 64.04 1.82% 43,799.48 Aaa / AA+ AAA 2.00 1.97 912828L24 US Treasury Note 1.875% Due 08/31/2022 900,000.00 10/04/2018 3.01% 862,488.28 876,798.50 103.92 0.25% 935,262.00 1,467.39 1.32% 58,463.50 Aaa / AA+ AAA 2.42 2.37 912828M80 US Treasury Note 2.000% Due 11/30/2022 950,000.00 04/29/2019 2.28% 940,759.77 943,136.84 104.57 0.28% 993,380.80 6,385.25 1.41% 50,243.96 Aaa / AA+ AAA 2.67 2.59 912828R28 US Treasury Note 1.625% Due 04/30/2023 1,500,000.00 06/19/2019 1.87% 1,486,582.03 1,489,303.69 104.08 0.29% 1,561,230.00 10,245.54 2.21% 71,926.31 Aaa / AA+ AAA 3.08 3.00 912828R69 US Treasury Note 1.625% Due 05/31/2023 1,500,000.00 04/11/2019 2.30% 1,460,156.25 1,469,462.82 104.16 0.30% 1,562,461.50 8,191.60 2.21% 92,998.68 Aaa / AA+ AAA 3.17 3.08 912828T91 US Treasury Note 1.625% Due 10/31/2023 1,500,000.00 09/13/2019 1.78% 1,490,917.97 1,492,112.02 104.69 0.31% 1,570,371.00 10,245.54 2.23% 78,258.98 Aaa / AA+ AAA 3.59 3.47 TOTAL US Treasury 21,675,000.00 1.93% 21,417,677.16 21,532,052.56 0.19% 22,169,812.60 87,994.27 31.35% 637,760.04 Aaa / AA+ Aaa 1.62 1.59 TOTAL PORTFOLIO 68,841,944.05 2.09% 68,851,142.60 68,920,016.51 0.66% 70,648,223.31 353,518.34 100.00% 1,728,206.80 Aa1 / AA+ Aaa 1.89 1.76 TOTAL MARKET VALUE PLUS ACCRUALS 71,001,741.65 As of March 31, 2020 31 Holdings Report Danville NERIAD Improvement Fund (89-1 90A) -Account #24 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration Agency 313312YA2 FFCB Discount Note 0.530% Due 06/12/2020 47,000.00 03/24/2020 0.54% 46,945.34 46,945.34 99.88 0.54% 46,945.34 4.84 5.43% 0.00 P-1 / A-1+ F-1+ 0.20 0.20 TOTAL Agency 47,000.00 0.54% 46,945.34 46,945.34 0.54% 46,945.34 4.84 5.43% 0.00 Aaa / AAA Aaa 0.20 0.20 Money Market Fund FI 94975H296 Wells Fargo Treasury Plus MMFD 453 175,025.26 02/27/2020 0.22% 175,025.26 175,025.26 1.00 0.22% 175,025.26 0.00 20.26% 0.00 Aaa / AAA NR 0.00 0.00 TOTAL Money Market Fund FI 175,025.26 0.22% 175,025.26 175,025.26 0.22% 175,025.26 0.00 20.26% 0.00 Aaa / AAA NR 0.00 0.00 US Treasury 912828X96 US Treasury Note 1.500% Due 05/15/2020 200,000.00 05/30/2019 2.32% 198,453.13 199,805.54 100.17 0.12% 200,340.80 1,137.36 23.32% 535.26 Aaa / AA+ AAA 0.12 0.12 9128282Q2 US Treasury Note 1.500% Due 08/15/2020 160,000.00 09/30/2019 1.83% 159,537.50 159,803.44 100.59 (0.06%) 160,937.44 303.30 18.66% 1,134.00 Aaa / AA+ AAA 0.38 0.38 912828M98 US Treasury Note 1.625% Due 11/30/2020 275,000.00 12/02/2019 1.70% 274,806.64 274,870.56 101.03 0.08% 277,835.80 1,501.79 32.33% 2,965.24 Aaa / AA+ AAA 0.67 0.66 TOTAL US Treasury 635,000.00 1.93% 632,797.27 634,479.54 0.06% 639,114.04 2,942.45 74.31% 4,634.50 Aaa / AA+ Aaa 0.42 0.42 TOTAL PORTFOLIO 857,025.26 1.51% 854,767.87 856,450.14 0.12% 861,084.64 2,947.29 100.00% 4,634.50 Aaa / AAA Aaa 0.33 0.32 TOTAL MARKET VALUE PLUS ACCRUALS 864,031.93 As of March 31, 2020 32 SECTION |Section 4 |Transactions 33 Transaction Ledger Danville Short Term Treasury Pool -Account #21 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 01/31/2020 62479LDV4 1,400,000.00 MUFG Bank Ltd Discount CP 1.68% Due: 04/29/2020 99.585 1.71%1,394,185.33 0.00 1,394,185.33 0.00 Purchase 03/04/2020 3130A7PH2 1,500,000.00 FHLB Note 1.875% Due: 03/08/2024 104.035 0.85%1,560,525.00 13,750.00 1,574,275.00 0.00 Purchase 03/11/2020 47789KAC7 370,000.00 John Deere Owner Trust 2020-A A3 1.1% Due: 08/15/2024 99.994 1.11%369,977.39 0.00 369,977.39 0.00 Purchase 03/25/2020 3135G0V34 1,700,000.00 FNMA Note 2.5% Due: 02/05/2024 106.356 0.82%1,808,052.00 5,902.78 1,813,954.78 0.00 Subtotal 4,970,000.00 5,132,739.72 19,652.78 5,152,392.50 0.00 TOTAL ACQUISITIONS 4,970,000.00 5,132,739.72 19,652.78 5,152,392.50 0.00 DISPOSITIONS Sale 03/09/2020 912828VA5 325,000.00 US Treasury Note 1.125% Due: 04/30/2020 100.059 0.71%325,190.43 1,305.80 326,496.23 171.21 Subtotal 325,000.00 325,190.43 1,305.80 326,496.23 171.21 Call 03/06/2020 459200HA2 750,000.00 IBM Corp Note 2.9% Due: 11/01/2021 102.650 1.27%769,877.18 7,552.08 777,429.26 22,654.66 Subtotal 750,000.00 769,877.18 7,552.08 777,429.26 22,654.66 Maturity 01/10/2020 3133EG3J2 1,500,000.00 FFCB Note 1.55% Due: 01/10/2020 100.000 1,500,000.00 0.00 1,500,000.00 0.00 Maturity 01/17/2020 3137EAEE5 1,485,000.00 FHLMC Note 1.5% Due: 01/17/2020 100.000 1,485,000.00 0.00 1,485,000.00 0.00 Maturity 01/31/2020 912828H52 1,350,000.00 US Treasury Note 1.25% Due: 01/31/2020 100.000 1,350,000.00 0.00 1,350,000.00 0.00 Maturity 02/28/2020 3135G0T29 1,310,000.00 FNMA Note 1.5% Due: 02/28/2020 100.000 1,310,000.00 0.00 1,310,000.00 0.00 December 31, 2019 through March 31, 2020 As of March 31, 2020 34 Transaction Ledger Danville Short Term Treasury Pool -Account #21 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Maturity 03/13/2020 313378J77 1,000,000.00 FHLB Note 1.875% Due: 03/13/2020 100.000 1,000,000.00 0.00 1,000,000.00 0.00 Subtotal 6,645,000.00 6,645,000.00 0.00 6,645,000.00 0.00 TOTAL DISPOSITIONS 7,720,000.00 7,740,067.61 8,857.88 7,748,925.49 22,825.87 December 31, 2019 through March 31, 2020 As of March 31, 2020 35 Transaction Ledger Danville NERIAD Improvement Fund (89-1 90A) -Account #24 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 03/25/2020 313312YA2 47,000.00 FFCB Discount Note 0.53% Due: 06/12/2020 99.884 0.54%46,945.34 0.00 46,945.34 0.00 Subtotal 47,000.00 46,945.34 0.00 46,945.34 0.00 TOTAL ACQUISITIONS 47,000.00 46,945.34 0.00 46,945.34 0.00 DISPOSITIONS Maturity 02/27/2020 912796SD2 200,000.00 US Treasury Bill 2.462% Due: 02/27/2020 100.000 195,022.30 4,977.70 200,000.00 0.00 Subtotal 200,000.00 195,022.30 4,977.70 200,000.00 0.00 TOTAL DISPOSITIONS 200,000.00 195,022.30 4,977.70 200,000.00 0.00 December 31, 2019 through March 31, 2020 As of March 31, 2020 36 Important Disclosures 2019 Chandler Asset Management,Inc, An Independent Registered Investment Adviser. Information contained herein is confidential.Prices are provided by IDC,an independent pricing source.In the event IDC 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. 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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. As of March 31, 2020 37 Benchmark Disclosures ICE BAML 1-3 Yr US Treasury Index The ICE BAML 1-3 Year US Treasury Index tracks the performance of US dollar denominated sovereign debt publicly issued by the US government in its domestic market.Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity,a fixed coupon schedule and a minimum amount outstanding of $1 billion.Qualifying securities must haveat least 18 months to final maturity at the time of issuance.(Index:G1O2.Please visit www.mlindex.ml.com for more information) ICE BAML 3-Month US Treasury Bill Index The ICE BAML US 3-Month Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month.At the end of the month that issue is sold and rolled into a newly selected issue.The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to,but not beyond,three months from the rebalancing date.(Index: G0O1. Please visit www.mlindex.ml.com for more information) ICE BAML 1-3 Yr US Corp/Govt Rated AAA-A Index The ICE BAML 1-3 AAA-A Year US Corporate &Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market,including US Treasury, US agency,foreign government, supranational and corporate securities.Qualifying securities must be rated AAA through A3 (based on an average of Moody’s,S&P and Fitch).In addition, 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 final maturity at point of issuance,a fixed coupon scheduleand a minimum amount outstanding of $1 billion for US Treasuriesand $250 million for all other securities.(Index:GVPB.Please visit www.mlindex.ml.com for more information) As of March 31, 2020 38