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HomeMy WebLinkAbout041922-09.1CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com INVESTMENT REPORT Period Ending March 31, 2022 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, 2022 1 SECTION |Section 1 |Economic Update 2 Economic Update    The Russian invasion into Ukraine and resulting Western sanctions on Russia have fueled volatility in financial markets.The latest escalation has exacerbated inflationary pressures,particularly in energy and commodities,and has caused tightening conditions in financial markets.While consumer spending and economic growth remain strong,we believe an extended conflict in Eastern Europe along with elevated energy prices increases the risk of an economic slowdown later this year. While we expect the Fed to tighten monetary policy,the FOMC has very little margin for error as it attempts to combat inflation without pushing the economy into a recession. Over the near-term, we expect financial market volatility to remain elevated and conditions to remain tighter with heightened geopolitical risk,supply chain bottlenecks and persistent inflation, and the Fed's pivot to less accommodative monetary policy. The Federal Open Market Committee (FOMC)raised the federal funds rate by 0.25%at their March 16th meeting to a target range of 0.25%to 0.50%.The Federal Reserve also ended their bond-buying program as expected in March,which included the purchase of treasury and agency mortgage-backed securities.Fed Chair Powell suggested that balance sheet runoff could begin as early as their next meeting in May,sooner than previously anticipated,and that the pace of the unwind will likely be fasterthan in the previous quantitative tightening cycle.The dotplot favors six additional rate hikes in 2022,which implies a 25 basis point rate hike at each remaining meeting this year,but the Fed hasn’t ruled out incorporating one or more 50 basis point hikes to address inflation.The FOMC’s Summary of Economic Projections forecasts higher Personal Consumption Expenditure (PCE)inflation this year at 4.3%and a lower growth rate of 2.8%real GDP.We are anticipating additional rates hikes by the Fed this year,but we do not believe that monetary policyis on a pre-set course and expect the Fed's policy adjustments will depend on developments in the economy. In March,yields increased dramatically and the curve continued to flatten.The 2-year Treasury yield increased 90 basis points to 2.34%,the 5-year Treasury yield increased 74 basis points to 2.46%,and the 10-year Treasury yield increased 51 basis points to 2.34%.The spread between the 2-year and 10-year Treasury yield declined to zero at March month-end versus 40 basis points at February month-end and 158 basis points one year ago.While the flat yield curve bears watching over the longer run,the spread between 3-month and 10-year treasuries is still steep at about 185 basis points,which indicates likely economic growth in the coming year. 3 Source: US Department of Labor Source: US Department of Labor Employment The U.S.economy added 431,000 jobs in March,with upward revisions from the prior months totaling 95,000.Trends in employment remain strong,with the three-month moving average payrolls at 561,000 and the six-month moving average at 600,000.Job gains were broad based in March,led by leisure and hospitality and professional and business services.The unemployment rate fell to 3.6%from 3.8%,the lowest level since February 2020.The labor participation rate increased marginally to 62.4%in March from 62.3%in February but remains lower than the pre- pandemic level of 63.4%.The U-6 underemployment rate,which includes those who are marginally attached to the labor force and employed part time for economic reasons,fell to 6.9%in March from 7.2%in February,declining below its pre-pandemic level of 7.0%in February 2020. Wage growth accelerated in March,with average hourly earnings rising 5.6%from 5.2%year-over-year.As more participants enter the labor force, wage inflation dynamics should start to moderate, helping to lower the current elevated inflation readings. -22,000 -18,000 -14,000 -10,000 -6,000 -2,000 2,000 6,000 M O M C h a n g e I n ( 0 0 0 ' s ) Nonfarm Payroll (000's) Non-farm Payroll (000's) 3 month average (000's) 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% Unemployment Rate Underemployment Rate (U6) Unemployment Rate (U3) Ra t e ( % ) 4 Source: US Department of Labor Source: US Department of Commerce Inflation Although U.S.consumer prices were inline with expectations in February,inflation hit a 40-year high.The Consumer Price Index (CPI)was up 7.9%year-over-year in February, versus a 7.5%year-over-year gain in January.Core CPI (CPI less food and energy)was up 6.4%year-over-year in February, versus up 6.0%in January.Rising food and rent prices were primary contributors to the big increase,as well as the month-end surge in gas prices, which islikely to be even more pronounced in the March report.The Personal Consumption Expenditures (PCE)index was up 6.4%year-over-year in February,up from 6.0%in January.Core PCE was up 5.4%year-over-year in February, versus up 5.2%in January. Current inflation readings continue to run well above the Fed’s longer-run target of around 2.0%.We believe pricing pressures are likely to increase in the coming months considering the recent surge in commodity prices,and will likely remain elevated longer than anticipated as a result of the conflict in Europe. 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% Personal Consumption Expenditures (PCE) PCE Price Deflator YOY % Change PCE Core Deflator 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% Consumer Price Index (CPI) CPI YOY % Change Core CPI YOY % Change Y O Y ( % ) C h a n g e 5 Retail sales edged higher in February,but there are signs that higher gas prices are impacting discretionary spending.On a year-over-year basis,retail sales were up 17.6%in February versus up 14%in January.On a month-over-month basis,retail sales moderated,rising 0.3%in February versus an upwardly revised increase of 4.9%in January.Excluding vehicles and gas,retail sales were down 0.4%month-over-month. Although inflation threatens to put a dent in expected growth,we believe high levels of consumer savings along with improvement in the health situation and continued improvement in the labor market should provide a healthy tailwind for consumer spending.The Consumer Confidence index rebounded to 107.2 in March following declines in January and February,primarily driven by positive assessments of employment. However, while consumers’ evaluations of the present situation was strong, future expectations have been deteriorating. Source: US Department of Commerce Source: The Conference Board -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Retail Sales YOY % Change Y O Y ( % ) C h a n g e 80 90 100 110 120 130 140 In d e x L e v e l Consumer Confidence Consumer 6 Source: The Conference Board Source: Federal Reserve Bank of Chicago Economic Activity The Conference Board’s Leading Economic Index (LEI)increased 0.3%month-over-month in February,following a 0.5%downwardly revised decline in January.On a year-over-year basis,the LEI was up 7.6%in February versus up 7.3%in January.The Conference Board acknowledged that the data do not fully reflect the impact of the Russian invasion of Ukraine on global supply chain issues, shortages,and the resulting soaring prices, which could result in slower than expected growth in the first half of the year.Meanwhile,the Chicago Fed National Activity Index (CFNAI)fell to 0.51 in February from a downwardly revised 0.59 in January.On a 3-month moving average basis,the CFNAI declined to 0.35 in February, while January was revised downward to 0.37. -8.00 -6.00 -4.00 -2.00 0.00 2.00 4.00 6.00 Chicago Fed National Activity Index (CFNAI) 3 M o n t h A v e r a g e -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% Leading Economic Indicators (LEI) M O M ( % ) C h a n g e 7 Source: US Department of Commerce Source: S&P Housing 0 200 400 600 800 1000 1200 1400 1600 1800 2000 M O 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 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% 18.0% 21.0% 24.0% S&P/Case -Shiller 20 City Composite Home Price Index YO Y ( % ) C h a n g e Total housing starts rebounded 6.8%to an annual rate of 1,769,000 in February.Single-family starts increased 5.7%,and multi-family starts increased 9.3%,month-over-month.On a year-over-year basis,total housing starts were up 22.3%in February driven by multi-family starts. According to the Case-Shiller 20-City home price index,home prices were up 19.1%year-over-year in January versus up 18.6%year-over-year in December,suggesting tight supply may be continuing to support prices.Rising mortgage rates and affordability could be headwinds to further price growth. 8 Source: Institute for Supply Management Source: Federal Reserve Manufacturing The Institute for Supply Management (ISM)manufacturingindex fell to an 18-month low of 57.1 in March from 58.6 in February due to surging energy and commodities prices triggered by Russia's invasion of Ukraine. Readings above 50.0 are indicative of expansion in the manufacturing sector.On a month-over-month basis,the Industrial Production index rose 0.5%in February,following a 1.4%increase in January. Capacity utilization rose to 77.6%in February,up from 77.3%in January.Although capacity utilization remains below its longer-run average of 79.6%,it is running above the pre-pandemic level of 76.3%. 40 42 44 46 48 50 52 54 56 58 60 62 64 66 Institute of Supply Management Purchasing Manager Index EXPANDING CONTRACTING -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Industrial Production YO Y ( % ) C h a n g e 9 Source: US Department of Commerce Source: US Department of Commerce 3/21 6/21 9/21 12/21 7.4% 7.9% 1.4% 1.8% -0.4% -0.7% 2.1% 5.8% -1.6% -0.2% -1.3% -0.2% 0.8% -0.4% -0.4% -0.3% 0.0% 0.0% 0.5% -0.2% 6.3% 6.7% 2.3% 6.9% 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 -35.0% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Gross Domestic Product (GDP) According to the third estimate,fourth quarter GDP grew at an annualized rate of 6.9%,revised slightly downward from the second estimate of 7.0%.Economic growth reaccelerated in the fourth quarter after slowing to a pace of 2.3%growth in the third quarter,bringing overall GDP growth for 2021 to 5.7%.The most significant contributor to fourth quarter growth was inventory build,potentially reflecting some easing in supply chain disruptions.The fourth-quarter's build will make for a tough comparison in the first quarter.The consensus estimate calls for 1.1% GDP growth in the first quarter, 3.0% growth in the current quarter, and 3.3% growth for 2022. 10 Federal Reserve Source: Federal Reserve Source: Bloomberg As expected the Federal Open Market Committee (FOMC)raised the federal funds rate by 0.25%at their March meeting to a target range of 0.25%to 0.50%.,This was the first increase since 2018,after two years of holding the federal funds rates near zero to insulate the economy from the impacts of the pandemic.The Federal Reserve (Fed)also ended their bond-buying program as expected in March,which grew the balance sheet to about $8.9 trillion.Fed Chair Powell suggested that balance sheet runoff could begin as early as their next meeting in May, sooner than previously anticipated,and that the pace of the unwind will likely be faster than in the previous quantitative tightening cycle.The dotplot favors six additional rate hikes in 2022,which implies a 25 basis point rate hike at each remaining meeting this year,but the Fed hasn’t ruled out incorporating one or more 50 basis point hikes to address inflation.The FOMC’s Summary of Economic Projections forecasts higher Personal Consumption Expenditure (PCE) inflation this year at 4.3% and a lower growth rate of 2.8% real GDP. 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% Effective Federal Funds Rate Yi e l d ( % ) 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 In $ m i l l i o n s 11 Source: Bloomberg Source: Bloomberg 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 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% US Treasury Yield Curve Mar-22 Dec-21 Mar-21 Y i e l d ( % ) Bond Yields At the end of March, the 2-year Treasury yield was 217 basis points higher, and the 10-Year Treasury yield was about 60 basis points higher, year- over-year.The spread between the 2-year Treasury yield and 10-year Treasury yield declined to zero at March month-end compared to the average historical spread (since 2003)of about 130 basis points.While the flat yield curve bears watching over the longer run,the spread between 3-month and 10-year treasuries is still steep at about 185 basis points, which indicates likely economic growth in the coming year. 12 Section 2|SECTION |Section 2 |Account Profile 13 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, 2022 14 Compliance As of March 31, 2022 Category Standard Comment U.S. Treasuries No Limitation; 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 Federal Agencies No Limitation; 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 Supranational Obligations "AA" rating category or higher by a NRSRO; 30% max; 5% max per issuer; USD denominated senior unsecured unsubordinated obligations; Issued or unconditionally guaranteed by International Bank for Reconstruction & Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IADB); Complies Municipal Securities (CA, Local Agency)"A" rating category or better by a NRSRO; 30% max; 5% max per issuer; Include obligations of the Town, State of California, and any local agency within the State of California Complies Municipal Securities (CA, Other States) "A" rating category or better by a NRSRO; 30% max; 5% max per issuer; Any of the other 49 states, in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. Complies Corporate Medium Term Notes "A" rating category or higher by a NRSRO; 30% max (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 Agency Mortgage Pass-Through Securities 15% max; 5% max 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% max(combination of ABS and CMOs); 5% max per issuer Complies Negotiable Certificates of Deposit (NCD)"A-1" short-term rated or higher by a NRSRO; and "A" long-term rating category or higher by a NRSRO; 30% max; 5% max per issuer; 2 years max maturity Complies Bank/Time Deposits Funds on deposit in banks must be FDIC insured or collateralized in accordance with California Government Code Complies Banker’s Acceptances "A-1" short-term rated or higher by a NRSRO; and "A" long-term rating category or higher by a NRSRO; 40% max; 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 rating category or higher by a NRSRO, if any; 25% max; 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 Money Market Mutual Funds Highest rating by two NRSROs; or SEC registered adviser with AUM >$500 million and experience greater than 5 years; 20% max in Money Market Mutual Funds; 20% max combined Money Market Mutual Funds and Mutual Funds Complies Mutual Funds Highest rating by two NRSROs; or SEC registered adviser with AUM >$500 million and experience greater than 5 years; 10% max per one Mutual Fund; 20% max combined Money Market Mutual Funds and Mutual Funds Complies Local Agency Investment Fund (LAIF)30% max 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 Repurchase Agreements 15% max; 30 days max maturity; Market value of securities shall not be < 102% of the repurchase amount; Collateralized by Treasury or Agency obligations; Delivered to the Town's custody bank; Not used by Investment Adviser Complies Prohibited Inverse floaters, range notes, mortgage derived interest-only strips; zero interest accrual if not backed by US Government; Trading securities for the sole purpose of speculating on the future direction of interest rates; Purchasing or selling securities on margin; Reverse Repurchase Agreements; Securities lending; Foreign currency denominated securities Complies Max Per Issuer 5% max per issuer, with the exception of LAIF, Treasuries, Agencies, Money Market Mutual Funds; 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 15 Portfolio Characteristics Danville Short Term Treasury Pool 03/31/22 12/31/21 Benchmark*Portfolio Portfolio Average Maturity (yrs)1.81 1.93 1.89 Average Modified Duration 1.77 1.76 1.78 Average Purchase Yield n/a 1.14%1.16% Average Market Yield 2.16%2.09%0.69% Average Quality**AAA AA+/Aa1 AA+/Aa1 Total Market Value 79,689,525 79,425,827 *ICE BofA 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, 2022 16 Danville Short Term Treasury Pool Sector Distribution ABS 6.2% Agency 38.2% Corporate 17.0% LAIF 0.1% Money Market Fund 0.4% Supranational 4.5% US Treasury 33.5% March 31, 2022 December 31, 2021 ABS 4.5% Agency 39.5% Corporate 15.3% LAIF 0.1% Money Market Fund 0.4% Supranational 4.7% US Treasury 35.6% As of March 31, 2022 17 Issue Name Investment Type % Portfolio Government of United States US Treasury 33.47% Federal National Mortgage Association Agency 10.60% Federal Home Loan Mortgage Corp Agency 10.51% Federal Farm Credit Bank Agency 9.08% Federal Home Loan Bank Agency 8.05% Inter-American Dev Bank Supranational 2.89% Apple Inc Corporate 1.56% Toyota ABS ABS 1.54% John Deere ABS ABS 1.49% Deere & Company Corporate 1.39% Toyota Motor Corp Corporate 1.27% Berkshire Hathaway Corporate 1.27% MasterCard Inc Corporate 1.24% International Finance Corp Supranational 1.23% Honda Motor Corporation Corporate 1.22% Charles Schwab Corp/The Corporate 1.21% Amazon.com Inc Corporate 1.21% Paccar Financial Corporate 1.09% Caterpillar Inc Corporate 1.09% Honda ABS ABS 1.08% Wal-Mart Stores Corporate 1.03% Bank of New York Corporate 0.95% US Bancorp Corporate 0.95% JP Morgan Chase & Co Corporate 0.90% Hyundai Auto Receivables ABS 0.74% Mercedes-Benz Auto Lease Trust ABS 0.44% Intl Bank Recon and Development Supranational 0.43% Wells Fargo Adv Tsy Plus Money Market Fund Money Market Fund 0.43% Nissan ABS ABS 0.35% ChevronTexaco Corp Corporate 0.32% State Street Bank Corporate 0.32% BMW Vehicle Lease Trust ABS 0.31% GM Financial Securitized Term Auto Trust ABS 0.21% Local Agency Investment Fund LAIF 0.09% TOTAL 100.00% Issuers Danville Short Term Treasury Pool –Account #21 As of March 31, 2022 18 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Danville Short Term Treasury Pool ICE BofA 1-3 Yr US Treasury Index Portfolio Compared to the Benchmark 0 -0.25 0.25 -0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Portfolio 5.1% 4.0% 9.6% 39.3% 32.7% 9.3% 0.0% 0.0% Benchmark*0.0% 0.0% 3.1% 55.9% 41.0% 0.0% 0.0% 0.0% *ICE BofA 1-3 Yr US Treasury Index Duration Distribution Danville Short Term Treasury Pool As of March 31, 2022 19 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ March 31, 2022 December 31, 2021 March 31, 2022 vs. December 31, 2021 0 -0.25 0.25 -0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 03/31/22 5.1%4.0%9.6%39.3%32.7%9.3%0.0%0.0% 12/31/21 5.5%5.1%11.9%38.8%28.4%10.4%0.0%0.0% Danville Short Term Treasury Pool Duration Distribution As of March 31, 2022 20 Purchase Yield as of 03/31/22 = 1.14% 0.00 0.50 1.00 1.50 2.00 2.50 Pe r c e n t ( % ) Historical Average Purchase Yield Danville Short Term Treasury Pool As of March 31, 2022 21 Growth of $1 Million Growth Over Time As of March 31, 2022 As of 03/31/2022 Dollar Value Return Danville Total Return $2,483,667 3.43% Danville Realized Return $2,501,541 3.45% LAIF $1,991,939 2.59% Historical Return of $1 Million Invested on March 31, 1995 22 Total and Realized Rate of Return Annualized Since Inception March 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. -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 12 months 2 years 3 years 5 years 10 years Since Inception Danville Short Term Treasury Pool ICE BofA 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 -2.16%-2.57%-0.76%1.03%1.27%1.02%3.43% ICE BofA 1-3 Yr US Treasury Index -2.34%-2.84%-1.31%0.88%1.08%0.86%3.17% REALIZED RATE OF RETURN Danville Short Term Treasury Pool 0.33%1.43%1.65%1.80%1.71%1.44%3.45% Investment Performance Danville Short Term Treasury Pool As of March 31, 2022 23 Portfolio Characteristics Danville NERIAD Improvement Fund (89-1 90A) 03/31/22 12/31/21 Benchmark*Portfolio Portfolio Average Maturity (yrs)0.15 0.61 0.58 Average Modified Duration 0.15 0.60 0.58 Average Purchase Yield n/a 0.57%0.11% Average Market Yield 0.28%0.70%0.14% Average Quality**AAA AAA/Aaa AAA/Aaa Total Market Value 865,644 865,905 *ICE BofA 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, 2022 24 Issue Name Investment Type % Portfolio Government of United States US Treasury 98.93% Wells Fargo Adv Tsy Plus Money Market Fund Money Market Fund 1.07% TOTAL 100.00% Issuers Danville NERIAD Improvement Fund (89-1 90A) –Account #24 As of March 31, 2022 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 43815NAC8 Honda Auto Receivables Trust 2019-3 A3 1.780% Due 08/15/2023 190,614.70 08/20/2019 1.79% 190,613.11 190,614.46 100.08 1.48% 190,772.72 150.80 0.24% 158.26 Aaa / AAA NR 1.38 0.29 477870AC3 John Deere Owner Trust 2019-B A3 2.210% Due 12/15/2023 70,960.02 07/16/2019 2.23% 70,944.96 70,954.17 100.27 1.25% 71,149.20 69.70 0.09% 195.03 Aaa / NR AAA 1.71 0.28 65479JAD5 Nissan Auto Receivables Owner 2019-C A3 1.930% Due 07/15/2024 279,343.86 10/16/2019 1.94% 279,329.11 279,336.72 100.19 1.42% 279,884.95 239.61 0.35% 548.23 Aaa / AAA NR 2.29 0.38 47789KAC7 John Deere Owner Trust 2020-A A3 1.100% Due 08/15/2024 250,264.85 03/04/2020 1.11% 250,249.56 250,256.66 99.68 1.69% 249,471.76 122.35 0.31% (784.90) Aaa / NR AAA 2.38 0.53 58769KAD6 Mercedes-Benz Auto Lease Trust 2021-B A3 0.400% Due 11/15/2024 360,000.00 06/22/2021 0.40% 359,972.82 359,980.89 97.45 2.42% 350,834.04 64.00 0.44% (9,146.85) NR / AAA AAA 2.63 1.27 05601XAC3 BMW Vehicle Lease Trust 2022-1 A3 1.100% Due 03/25/2025 255,000.00 01/11/2022 1.11% 254,961.88 254,965.33 97.51 2.72% 248,657.90 46.75 0.31% (6,307.43) NR / AAA AAA 2.99 1.55 47788UAC6 John Deere Owner Trust 2021-A A3 0.360% Due 09/15/2025 255,000.00 03/02/2021 0.37% 254,950.99 254,965.41 96.85 2.79% 246,965.21 40.80 0.31% (8,000.20) Aaa / NR AAA 3.46 1.30 89190GAC1 Toyota Auto Receivables Trust 2021-B A3 0.260% Due 11/17/2025 1,025,000.00 06/08/2021 0.26% 1,024,889.61 1,024,917.35 96.71 2.64% 991,277.50 118.44 1.24% (33,639.85) NR / AAA AAA 3.64 1.39 43815GAC3 Honda Auto Receivables Trust 2021-4 A3 0.880% Due 01/21/2026 260,000.00 11/16/2021 0.89% 259,945.19 259,951.11 96.82 2.58% 251,739.80 63.56 0.32% (8,211.31) Aaa / NR AAA 3.81 1.89 47789QAC4 John Deere Owner Trust 2021-B A3 0.520% Due 03/16/2026 310,000.00 07/13/2021 0.52% 309,972.35 309,977.62 95.82 2.82% 297,041.38 71.64 0.37% (12,936.24) Aaa / NR AAA 3.96 1.85 89238JAC9 Toyota Auto Receivables Trust 2021-D A3 0.710% Due 04/15/2026 245,000.00 11/09/2021 0.71% 244,994.78 244,995.38 96.22 2.82% 235,748.80 77.31 0.30% (9,246.58) NR / AAA AAA 4.04 1.81 43815BAC4 Honda Auto Receivables Trust 2022-1 A3 1.880% Due 05/15/2026 425,000.00 02/15/2022 1.89% 424,936.08 424,938.09 98.21 2.68% 417,390.38 355.11 0.52% (7,547.71) Aaa / AAA NR 4.13 2.26 47787JAC2 John Deere Owner Trust 2022-A A3 2.320% Due 09/16/2026 330,000.00 03/10/2022 2.34% 329,927.00 329,927.91 98.70 2.91% 325,720.56 319.00 0.41% (4,207.35) Aaa / NR AAA 4.47 2.22 448977AD0 Hyundai Auto Receivables Trust 2022-A A3 2.220% Due 10/15/2026 595,000.00 03/09/2022 2.23% 594,977.09 594,977.40 98.75 2.79% 587,580.35 550.38 0.74% (7,397.05) NR / AAA AAA 4.55 2.21 380146AC4 GM Financial Auto Receivables 2022-1 A3 1.260% Due 11/16/2026 170,000.00 01/11/2022 1.27% 169,985.23 169,986.11 96.81 3.09% 164,578.87 89.25 0.21% (5,407.24) NR / AAA AAA 4.63 1.76 TOTAL ABS 5,021,183.43 1.16% 5,020,649.76 5,020,744.61 2.52% 4,908,813.42 2,378.70 6.16% (111,931.19) Aaa / AAA Aaa 3.55 1.54 As of March 31, 2022 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 Agency 3130AEBM1 FHLB Note 2.750% Due 06/10/2022 1,475,000.00 Various 2.84% 1,470,268.25 1,474,769.21 100.45 0.37% 1,481,706.83 12,506.77 1.88% 6,937.62 Aaa / AA+ NR 0.19 0.19 313383WD9 FHLB Note 3.125% Due 09/09/2022 1,000,000.00 11/05/2018 3.10% 1,000,830.00 1,000,095.25 100.91 1.04% 1,009,085.00 1,909.72 1.27% 8,989.75 Aaa / AA+ AAA 0.44 0.44 3133EKY91 FFCB Note 1.375% Due 10/11/2022 1,500,000.00 10/15/2019 1.64% 1,488,585.00 1,497,980.66 100.10 1.19% 1,501,438.50 9,739.58 1.90% 3,457.84 Aaa / AA+ AAA 0.53 0.52 3135G0T94 FNMA Note 2.375% Due 01/19/2023 1,500,000.00 03/18/2019 2.46% 1,495,455.00 1,499,050.15 100.66 1.53% 1,509,970.50 7,125.00 1.90% 10,920.35 Aaa / AA+ AAA 0.81 0.79 3130ADRG9 FHLB Note 2.750% Due 03/10/2023 900,000.00 03/28/2019 2.24% 917,136.00 904,076.04 100.94 1.74% 908,471.70 1,443.75 1.14% 4,395.66 Aaa / AA+ NR 0.94 0.93 3137EAER6 FHLMC Note 0.375% Due 05/05/2023 1,330,000.00 05/05/2020 0.39% 1,329,441.40 1,329,796.08 98.41 1.85% 1,308,859.65 2,022.71 1.64% (20,936.43) Aaa / AA+ AAA 1.10 1.08 3135G04Q3 FNMA Note 0.250% Due 05/22/2023 1,425,000.00 05/20/2020 0.35% 1,420,710.75 1,423,370.48 98.15 1.89% 1,398,678.83 1,276.56 1.76% (24,691.65) Aaa / AA+ AAA 1.14 1.13 3133ELG81 FFCB Note 0.300% Due 06/08/2023 1,500,000.00 06/02/2020 0.33% 1,498,875.00 1,499,555.14 98.09 1.94% 1,471,288.50 1,412.50 1.85% (28,266.64) Aaa / AA+ AAA 1.19 1.17 3133834G3 FHLB Note 2.125% Due 06/09/2023 1,500,000.00 06/10/2019 2.00% 1,507,305.00 1,502,172.97 100.23 1.93% 1,503,478.50 9,916.67 1.90% 1,305.53 Aaa / AA+ NR 1.19 1.16 3137EAES4 FHLMC Note 0.250% Due 06/26/2023 1,305,000.00 06/24/2020 0.35% 1,301,189.40 1,303,430.52 97.93 1.95% 1,277,999.55 860.94 1.60% (25,430.97) Aaa / AA+ AAA 1.24 1.22 3135G05G4 FNMA Note 0.250% Due 07/10/2023 1,460,000.00 Various 0.28% 1,458,850.00 1,459,512.35 97.85 1.97% 1,428,557.44 821.25 1.79% (30,954.91) Aaa / AA+ AAA 1.28 1.26 3133EL3V4 FFCB Note 0.200% Due 08/14/2023 1,500,000.00 08/12/2020 0.27% 1,496,880.00 1,498,570.12 97.63 1.96% 1,464,420.00 391.67 1.84% (34,150.12) Aaa / AA+ AAA 1.37 1.35 3137EAEV7 FHLMC Note 0.250% Due 08/24/2023 1,500,000.00 09/28/2020 0.22% 1,501,095.00 1,500,527.34 97.49 2.08% 1,462,360.50 385.42 1.84% (38,166.84) Aaa / AA+ AAA 1.40 1.38 3137EAEW5 FHLMC Note 0.250% Due 09/08/2023 1,490,000.00 Various 0.26% 1,489,430.30 1,489,727.13 97.48 2.04% 1,452,523.52 237.98 1.82% (37,203.61) Aaa / AA+ AAA 1.44 1.42 3137EAEZ8 FHLMC Note 0.250% Due 11/06/2023 1,455,000.00 11/03/2020 0.28% 1,453,690.50 1,454,302.24 97.04 2.14% 1,411,945.10 1,465.10 1.77% (42,357.14) Aaa / AA+ AAA 1.60 1.58 3135G06H1 FNMA Note 0.250% Due 11/27/2023 1,500,000.00 11/24/2020 0.27% 1,499,160.00 1,499,534.62 96.93 2.15% 1,453,974.00 1,291.67 1.83% (45,560.62) Aaa / AA+ AAA 1.66 1.63 3137EAFA2 FHLMC Note 0.250% Due 12/04/2023 1,500,000.00 12/09/2020 0.26% 1,499,610.00 1,499,780.63 96.85 2.17% 1,452,774.00 1,218.75 1.82% (47,006.63) Aaa / AA+ AAA 1.68 1.65 As of March 31, 2022 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 3135G0V34 FNMA Note 2.500% Due 02/05/2024 1,700,000.00 03/24/2020 0.82% 1,808,052.00 1,751,653.75 100.50 2.22% 1,708,537.40 6,611.11 2.15% (43,116.35) Aaa / AA+ AAA 1.85 1.79 3130A7PH2 FHLB Note 1.875% Due 03/08/2024 1,500,000.00 03/03/2020 0.85% 1,560,525.00 1,529,208.99 99.22 2.29% 1,488,342.00 1,796.88 1.87% (40,866.99) Aaa / AA+ NR 1.94 1.89 3133ENKS8 FFCB Note 1.125% Due 01/06/2025 595,000.00 01/06/2022 1.20% 593,661.25 593,759.42 96.49 2.44% 574,138.70 1,487.50 0.72% (19,620.72) Aaa / AA+ AAA 2.77 2.69 3133ENPG9 FFCB Note 1.750% Due 02/14/2025 1,500,000.00 Various 1.83% 1,496,422.50 1,496,544.27 98.09 2.44% 1,471,368.00 3,354.16 1.85% (25,176.27) Aaa / AA+ AAA 2.88 2.77 3133ENPY0 FFCB Note 1.750% Due 02/25/2025 750,000.00 03/14/2022 2.06% 743,440.50 743,543.94 98.02 2.46% 735,135.00 1,312.50 0.92% (8,408.94) Aaa / AA+ AAA 2.91 2.80 3135G05X7 FNMA Note 0.375% Due 08/25/2025 1,000,000.00 12/09/2021 1.17% 971,060.00 973,453.86 93.18 2.48% 931,844.00 375.00 1.17% (41,609.86) Aaa / AA+ AAA 3.41 3.34 TOTAL Agency 30,885,000.00 1.04% 31,001,672.85 30,924,415.16 1.90% 30,406,897.22 68,963.19 38.24% (517,517.94) Aaa / AA+ Aaa 1.45 1.42 Corporate 084664BT7 Berkshire Hathaway Note 3.000% Due 05/15/2022 1,000,000.00 03/16/2018 2.98% 1,000,670.00 1,000,019.43 100.24 1.06% 1,002,354.00 11,333.33 1.27% 2,334.57 Aa2 / AA A+ 0.12 0.12 69371RQ33 Paccar Financial Corp Note 2.000% Due 09/26/2022 500,000.00 09/23/2019 2.04% 499,390.00 499,900.93 100.35 1.27% 501,761.50 138.89 0.63% 1,860.57 A1 / A+ NR 0.49 0.49 166764AB6 Chevron Corp Callable Note Cont 9/5/2022 2.355% Due 12/05/2022 255,000.00 06/19/2019 2.28% 255,606.90 255,119.17 100.41 1.38% 256,052.39 1,935.03 0.32% 933.22 Aa2 / AA- NR 0.68 0.42 89236TEL5 Toyota Motor Credit Corp Note 2.700% Due 01/11/2023 1,000,000.00 01/25/2019 3.22% 980,920.00 996,231.60 100.85 1.59% 1,008,518.00 6,000.00 1.27% 12,286.40 A1 / A+ A+ 0.78 0.77 90331HNL3 US Bank NA Callable Note Cont 12/23/2022 2.850% Due 01/23/2023 750,000.00 04/29/2019 2.77% 752,190.00 750,476.85 100.70 1.87% 755,271.00 4,037.50 0.95% 4,794.15 A1 / AA- AA- 0.82 0.72 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% 764,625.00 753,462.01 100.89 1.73% 756,705.00 3,810.42 0.95% 3,242.99 A1 / A AA- 0.83 0.73 037833AK6 Apple Inc Note 2.400% Due 05/03/2023 750,000.00 05/29/2019 2.54% 746,205.00 748,948.63 100.57 1.87% 754,288.50 7,400.00 0.96% 5,339.87 Aaa / AA+ NR 1.09 1.06 931142EK5 Wal-Mart Stores Callable Note Cont 5/26/2023 3.400% Due 06/26/2023 800,000.00 03/27/2019 2.54% 827,616.00 808,035.37 101.75 1.86% 813,980.80 7,177.78 1.03% 5,945.43 Aa2 / AA AA 1.24 1.12 02665WCT6 American Honda Finance Note 3.550% Due 01/12/2024 950,000.00 08/19/2019 2.07% 1,008,634.00 973,782.39 101.62 2.61% 965,360.55 7,400.76 1.22% (8,421.84) A3 / A- A 1.79 1.71 As of March 31, 2022 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 24422EVN6 John Deere Capital Corp Note 0.450% Due 01/17/2024 615,000.00 03/01/2021 0.47% 614,563.35 614,726.94 96.74 2.32% 594,943.01 568.88 0.75% (19,783.93) A2 / A A 1.80 1.77 808513BN4 Charles Schwab Corp Callable Note Cont 2/18/2024 0.750% Due 03/18/2024 1,000,000.00 11/17/2021 0.92% 996,020.00 996,642.75 96.75 2.46% 967,457.00 270.83 1.21% (29,185.75) A2 / A A 1.97 1.93 023135BW5 Amazon.com Inc Note 0.450% Due 05/12/2024 1,000,000.00 Various 0.69% 994,141.10 995,043.76 96.43 2.19% 964,281.00 1,737.51 1.21% (30,762.76) A1 / AA AA- 2.12 2.08 14913R2L0 Caterpillar Financial Service Note 0.450% Due 05/17/2024 905,000.00 05/10/2021 0.50% 903,787.30 904,140.27 95.73 2.52% 866,349.26 1,515.88 1.09% (37,791.01) A2 / A A 2.13 2.09 24422EVQ9 John Deere Capital Corp Note 0.450% Due 06/07/2024 540,000.00 06/07/2021 0.49% 539,325.00 539,507.18 95.37 2.65% 514,982.88 769.50 0.65% (24,524.30) A2 / A A 2.19 2.14 69371RR40 Paccar Financial Corp Note 0.500% Due 08/09/2024 385,000.00 08/03/2021 0.52% 384,792.10 384,836.68 95.54 2.46% 367,843.25 278.06 0.46% (16,993.43) A1 / A+ NR 2.36 2.31 57636QAN4 MasterCard Inc Callable Note 1x 02/03/2025 2.000% Due 03/03/2025 1,000,000.00 02/25/2022 2.03% 999,010.00 999,037.95 98.53 2.53% 985,283.00 1,555.56 1.24% (13,754.95) A1 / A+ NR 2.93 2.81 037833DT4 Apple Inc Callable Note Cont 4/11/2025 1.125% Due 05/11/2025 500,000.00 02/25/2022 2.04% 485,870.00 486,245.35 95.59 2.61% 477,970.00 2,187.50 0.60% (8,275.35) Aaa / AA+ NR 3.12 3.01 46647PCH7 JP Morgan Chase & Co Callable Note Cont 6/1/2024 0.824% Due 06/01/2025 750,000.00 05/24/2021 0.79% 750,972.00 750,769.75 95.43 2.33% 715,754.25 2,060.00 0.90% (35,015.50) A2 / A- AA- 3.17 3.09 857477BR3 State Street Bank Callable Note Cont 2/6/2025 1.746% Due 02/06/2026 265,000.00 02/02/2022 1.82% 265,000.00 265,000.00 96.44 2.80% 255,554.87 694.04 0.32% (9,445.13) A1 / A AA- 3.86 3.67 TOTAL Corporate 13,715,000.00 1.79% 13,769,337.75 13,721,927.01 2.09% 13,524,710.26 60,871.47 17.05% (197,216.75) A1 / A+ A+ 1.67 1.61 LAIF 90LAIF$00 Local Agency Investment Fund State Pool 75,270.35 Various 0.42% 75,270.35 75,270.35 1.00 0.42% 75,270.35 91.31 0.09% 0.00 NR / NR NR 0.00 0.00 TOTAL LAIF 75,270.35 0.42% 75,270.35 75,270.35 0.42% 75,270.35 91.31 0.09% 0.00 NR / NR NR 0.00 0.00 As of March 31, 2022 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 Money Market Fund 94975H296 Wells Fargo Treasury Plus MMFD 453 342,052.81 Various 0.12% 342,052.81 342,052.81 1.00 0.12% 342,052.81 0.00 0.43% 0.00 Aaa / AAA NR 0.00 0.00 TOTAL Money Market Fund 342,052.81 0.12% 342,052.81 342,052.81 0.12% 342,052.81 0.00 0.43% 0.00 Aaa / AAA NR 0.00 0.00 Supranational 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 1,099,543.93 100.04 0.56% 1,100,469.70 8,929.86 1.39% 925.77 Aaa / AAA AAA 0.04 0.04 459058JM6 Intl. Bank Recon & Development Note 0.250% Due 11/24/2023 355,000.00 11/17/2020 0.32% 354,236.75 354,580.39 96.82 2.22% 343,728.40 313.09 0.43% (10,851.99) Aaa / AAA AAA 1.65 1.63 4581X0DZ8 Inter-American Dev Bank Note 0.500% Due 09/23/2024 1,250,000.00 09/15/2021 0.52% 1,249,075.00 1,249,235.36 95.31 2.46% 1,191,337.50 138.89 1.50% (57,897.86) Aaa / AAA NR 2.48 2.43 45950KCR9 International Finance Corp Note 1.375% Due 10/16/2024 1,000,000.00 07/29/2021 0.46% 1,028,980.00 1,022,990.96 97.46 2.41% 974,640.00 6,302.08 1.23% (48,350.96) Aaa / AAA NR 2.55 2.46 TOTAL Supranational 3,705,000.00 1.21% 3,686,509.75 3,726,350.64 1.84% 3,610,175.60 15,683.92 4.55% (116,175.04) Aaa / AAA Aaa 1.67 1.63 US Treasury 912828L24 US Treasury Note 1.875% Due 08/31/2022 900,000.00 10/04/2018 3.01% 862,488.28 896,001.56 100.41 0.89% 903,655.80 1,467.39 1.14% 7,654.24 Aaa / AA+ AAA 0.42 0.41 912828M80 US Treasury Note 2.000% Due 11/30/2022 950,000.00 04/29/2019 2.28% 940,759.77 948,285.97 100.45 1.31% 954,304.45 6,368.13 1.21% 6,018.48 Aaa / AA+ AAA 0.67 0.66 912828R28 US Treasury Note 1.625% Due 04/30/2023 1,500,000.00 06/19/2019 1.87% 1,486,582.03 1,496,250.58 99.84 1.77% 1,497,597.00 10,234.81 1.89% 1,346.42 Aaa / AA+ AAA 1.08 1.06 912828T91 US Treasury Note 1.625% Due 10/31/2023 1,500,000.00 09/13/2019 1.78% 1,490,917.97 1,496,514.33 99.21 2.13% 1,488,163.50 10,234.81 1.88% (8,350.83) Aaa / AA+ AAA 1.59 1.54 91282CBA8 US Treasury Note 0.125% Due 12/15/2023 750,000.00 01/08/2021 0.22% 747,861.33 748,752.44 96.53 2.21% 723,954.75 275.58 0.91% (24,797.69) Aaa / AA+ AAA 1.71 1.69 91282CBV2 US Treasury Note 0.375% Due 04/15/2024 1,000,000.00 04/14/2021 0.36% 1,000,351.56 1,000,238.97 96.12 2.33% 961,211.00 1,730.77 1.21% (39,027.97) Aaa / AA+ AAA 2.04 2.01 91282CCC3 US Treasury Note 0.250% Due 05/15/2024 1,250,000.00 05/12/2021 0.36% 1,246,093.75 1,247,232.78 95.65 2.36% 1,195,653.75 1,182.67 1.50% (51,579.03) Aaa / AA+ AAA 2.13 2.09 91282CCG4 US Treasury Note 0.250% Due 06/15/2024 1,500,000.00 06/10/2021 0.33% 1,496,542.97 1,497,457.70 95.44 2.38% 1,431,621.00 1,102.34 1.80% (65,836.70) Aaa / AA+ AAA 2.21 2.18 As of March 31, 2022 31 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 91282CCL3 US Treasury Note 0.375% Due 07/15/2024 1,500,000.00 07/28/2021 0.38% 1,499,648.44 1,499,728.37 95.52 2.39% 1,432,792.50 1,180.94 1.80% (66,935.87) Aaa / AA+ AAA 2.29 2.26 912828YE4 US Treasury Note 1.250% Due 08/31/2024 1,000,000.00 02/09/2021 0.26% 1,034,804.69 1,023,676.84 97.24 2.43% 972,422.00 1,086.96 1.22% (51,254.84) Aaa / AA+ AAA 2.42 2.36 91282CCX7 US Treasury Note 0.375% Due 09/15/2024 1,400,000.00 09/13/2021 0.44% 1,397,265.63 1,397,759.61 95.09 2.45% 1,331,257.20 242.53 1.67% (66,502.41) Aaa / AA+ AAA 2.46 2.42 912828YM6 US Treasury Note 1.500% Due 10/31/2024 1,350,000.00 08/06/2021 0.45% 1,395,246.09 1,386,227.57 97.64 2.45% 1,318,148.10 8,502.76 1.66% (68,079.47) Aaa / AA+ AAA 2.59 2.50 91282CDH1 US Treasury Note 0.750% Due 11/15/2024 1,500,000.00 11/10/2021 0.80% 1,497,832.03 1,498,103.03 95.66 2.47% 1,434,961.50 4,257.60 1.81% (63,141.53) Aaa / AA+ AAA 2.63 2.56 91282CDN8 US Treasury Note 1.000% Due 12/15/2024 850,000.00 01/26/2022 1.39% 840,636.72 841,205.81 96.20 2.46% 817,660.05 2,498.63 1.03% (23,545.76) Aaa / AA+ AAA 2.71 2.64 912828YY0 US Treasury Note 1.750% Due 12/31/2024 1,500,000.00 03/15/2022 2.03% 1,488,632.81 1,488,810.94 98.09 2.47% 1,471,288.50 6,598.76 1.85% (17,522.44) Aaa / AA+ AAA 2.76 2.65 912828Z52 US Treasury Note 1.375% Due 01/31/2025 1,500,000.00 02/24/2021 0.40% 1,557,011.72 1,541,131.02 97.02 2.47% 1,455,234.00 3,418.51 1.83% (85,897.02) Aaa / AA+ AAA 2.84 2.75 912828ZC7 US Treasury Note 1.125% Due 02/28/2025 1,000,000.00 02/03/2022 1.43% 990,820.31 991,279.29 96.22 2.48% 962,188.00 978.26 1.21% (29,091.29) Aaa / AA+ AAA 2.92 2.84 912828ZF0 US Treasury Note 0.500% Due 03/31/2025 1,350,000.00 Various 0.66% 1,342,150.39 1,343,682.51 94.30 2.48% 1,273,113.45 18.44 1.60% (70,569.06) Aaa / AA+ AAA 3.00 2.94 912828ZL7 US Treasury Note 0.375% Due 04/30/2025 1,000,000.00 01/26/2021 0.33% 1,001,953.13 1,001,413.95 93.73 2.50% 937,305.00 1,574.59 1.18% (64,108.95) Aaa / AA+ AAA 3.08 3.02 912828ZT0 US Treasury Note 0.250% Due 05/31/2025 1,500,000.00 06/11/2021 0.53% 1,483,359.38 1,486,705.90 93.16 2.51% 1,397,461.50 1,256.87 1.76% (89,244.40) Aaa / AA+ AAA 3.17 3.11 912828ZW3 US Treasury Note 0.250% Due 06/30/2025 1,500,000.00 07/29/2021 0.56% 1,482,246.09 1,485,285.72 93.00 2.51% 1,394,941.50 942.68 1.75% (90,344.22) Aaa / AA+ AAA 3.25 3.20 91282CAB7 US Treasury Note 0.250% Due 07/31/2025 1,350,000.00 12/02/2021 1.06% 1,310,871.09 1,314,356.37 92.81 2.51% 1,252,968.75 559.39 1.57% (61,387.62) Aaa / AA+ AAA 3.34 3.28 TOTAL US Treasury 27,650,000.00 0.92% 27,594,076.18 27,630,101.26 2.29% 26,607,903.30 65,713.42 33.47% (1,022,197.96) Aaa / AA+ Aaa 2.37 2.32 TOTAL PORTFOLIO 81,393,506.59 1.14% 81,489,569.45 81,440,861.84 2.09% 79,475,822.96 213,702.01 100.00% (1,965,038.88) Aa1 / AA+ Aaa 1.93 1.76 TOTAL MARKET VALUE PLUS ACCRUALS 79,689,524.97 As of March 31, 2022 32 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 Money Market Fund 94975H296 Wells Fargo Treasury Plus MMFD 453 9,229.17 03/31/2022 0.12% 9,229.17 9,229.17 1.00 0.12% 9,229.17 0.00 1.07% 0.00 Aaa / AAA NR 0.00 0.00 TOTAL Money Market Fund 9,229.17 0.12% 9,229.17 9,229.17 0.12% 9,229.17 0.00 1.07% 0.00 Aaa / AAA NR 0.00 0.00 US Treasury 912796K57 US Treasury Bill 0.070% Due 07/14/2022 235,000.00 07/19/2021 0.07% 234,835.96 234,835.96 99.93 0.07% 234,835.96 116.52 27.14% 0.00 P-1 / A-1+ F-1+ 0.29 0.29 91282CAR2 US Treasury Note 0.125% Due 10/31/2022 125,000.00 11/29/2021 0.20% 124,916.99 124,947.22 99.40 1.16% 124,248.00 65.61 14.36% (699.22) Aaa / AA+ AAA 0.59 0.58 912796N96 US Treasury Bill 0.143% Due 11/03/2022 250,000.00 11/04/2021 0.14% 249,640.78 249,640.78 99.86 0.14% 249,640.78 145.47 28.86% 0.00 P-1 / A-1+ F-1+ 0.59 0.59 912828ZD5 US Treasury Note 0.500% Due 03/15/2023 250,000.00 03/30/2022 1.66% 247,255.86 247,263.72 98.92 1.64% 247,304.75 57.74 28.58% 41.03 Aaa / AA+ AAA 0.96 0.95 TOTAL US Treasury 860,000.00 0.57% 856,649.59 856,687.68 0.70% 856,029.49 385.34 98.93% (658.19) Aaa / AAA Aaa 0.61 0.61 TOTAL PORTFOLIO 869,229.17 0.57% 865,878.76 865,916.85 0.70% 865,258.66 385.34 100.00% (658.19) Aaa / AAA Aaa 0.61 0.60 TOTAL MARKET VALUE PLUS ACCRUALS 865,644.00 As of March 31, 2022 33 SECTION |Section 4 |Transactions 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 ACQUISITIONS Purchase 01/11/2022 3133ENKS8 595,000.00 FFCB Note 1.125% Due: 01/06/2025 99.775 1.20%593,661.25 0.00 593,661.25 0.00 Purchase 01/19/2022 05601XAC3 255,000.00 BMW Vehicle Lease Trust 2022-1 A3 1.1% Due: 03/25/2025 99.985 1.11%254,961.88 0.00 254,961.88 0.00 Purchase 01/19/2022 380146AC4 170,000.00 GM Financial Auto Receivables 2022-1 A3 1.26% Due: 11/16/2026 99.991 1.27%169,985.23 0.00 169,985.23 0.00 Purchase 01/27/2022 91282CDN8 850,000.00 US Treasury Note 1% Due: 12/15/2024 98.898 1.39%840,636.72 1,004.12 841,640.84 0.00 Purchase 02/04/2022 912828ZC7 1,000,000.00 US Treasury Note 1.125% Due: 02/28/2025 99.082 1.43%990,820.31 4,879.14 995,699.45 0.00 Purchase 02/07/2022 857477BR3 265,000.00 State Street Bank Callable Note Cont 2/6/2025 1.746% Due: 02/06/2026 100.000 1.75%265,000.00 0.00 265,000.00 0.00 Purchase 02/17/2022 3133ENPG9 750,000.00 FFCB Note 1.75% Due: 02/14/2025 99.782 1.83%748,365.00 72.92 748,437.92 0.00 Purchase 02/23/2022 43815BAC4 425,000.00 Honda Auto Receivables Trust 2022-1 A3 1.88% Due: 05/15/2026 99.985 1.89%424,936.08 0.00 424,936.08 0.00 Purchase 02/28/2022 3133ENPG9 750,000.00 FFCB Note 1.75% Due: 02/14/2025 99.741 1.84%748,057.50 473.96 748,531.46 0.00 Purchase 03/01/2022 037833DT4 500,000.00 Apple Inc Callable Note Cont 4/11/2025 1.125% Due: 05/11/2025 97.174 2.04%485,870.00 1,718.75 487,588.75 0.00 Purchase 03/01/2022 57636QAN4 1,000,000.00 MasterCard Inc Callable Note 1x 02/03/2025 2% Due: 03/03/2025 99.901 2.03%999,010.00 9,888.89 1,008,898.89 0.00 Purchase 03/15/2022 3133ENPY0 750,000.00 FFCB Note 1.75% Due: 02/25/2025 99.125 2.06%743,440.50 729.17 744,169.67 0.00 Purchase 03/16/2022 448977AD0 595,000.00 Hyundai Auto Receivables Trust 2022-A A3 2.22% Due: 10/15/2026 99.996 2.23%594,977.09 0.00 594,977.09 0.00 Purchase 03/16/2022 47787JAC2 330,000.00 John Deere Owner Trust 2022-A A3 2.32% Due: 09/16/2026 99.978 2.34%329,927.00 0.00 329,927.00 0.00 December 31, 2021 through March 31, 2022 As of March 31, 2022 35 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 Purchase 03/16/2022 912828YY0 1,500,000.00 US Treasury Note 1.75% Due: 12/31/2024 99.242 2.03%1,488,632.81 5,438.54 1,494,071.35 0.00 Subtotal 9,735,000.00 9,678,281.37 24,205.49 9,702,486.86 0.00 TOTAL ACQUISITIONS 9,735,000.00 9,678,281.37 24,205.49 9,702,486.86 0.00 DISPOSITIONS Sale 02/04/2022 912828W55 1,300,000.00 US Treasury Note 1.875% Due: 02/28/2022 100.117 0.11%1,301,523.44 10,571.48 1,312,094.92 2,022.47 Sale 02/17/2022 912828W89 1,250,000.00 US Treasury Note 1.875% Due: 03/31/2022 100.199 0.15%1,252,490.23 9,014.42 1,261,504.65 2,630.92 Sale 03/11/2022 912828R69 1,500,000.00 US Treasury Note 1.625% Due: 05/31/2023 100.273 1.40%1,504,101.56 6,763.39 1,510,864.95 15,893.41 Sale 03/16/2022 3130AFE78 1,700,000.00 FHLB Note 3% Due: 12/09/2022 101.345 1.14%1,722,865.00 13,741.67 1,736,606.67 20,135.80 Subtotal 5,750,000.00 5,780,980.23 40,090.96 5,821,071.19 40,682.60 Maturity 01/05/2022 3135G0S38 1,400,000.00 FNMA Note 2% Due: 01/05/2022 100.000 1,400,000.00 0.00 1,400,000.00 0.00 Subtotal 1,400,000.00 1,400,000.00 0.00 1,400,000.00 0.00 TOTAL DISPOSITIONS 7,150,000.00 7,180,980.23 40,090.96 7,221,071.19 40,682.60 December 31, 2021 through March 31, 2022 As of March 31, 2022 36 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 03/31/2022 912828ZD5 250,000.00 US Treasury Note 0.5% Due: 03/15/2023 98.902 1.66%247,255.86 54.35 247,310.21 0.00 Subtotal 250,000.00 247,255.86 54.35 247,310.21 0.00 TOTAL ACQUISITIONS 250,000.00 247,255.86 54.35 247,310.21 0.00 DISPOSITIONS Maturity 03/31/2022 912828ZG8 250,000.00 US Treasury Note 0.375% Due: 03/31/2022 100.000 250,000.00 0.00 250,000.00 0.00 Subtotal 250,000.00 250,000.00 0.00 250,000.00 0.00 TOTAL DISPOSITIONS 250,000.00 250,000.00 0.00 250,000.00 0.00 December 31, 2021 through March 31, 2022 As of March 31, 2022 37 Important Disclosures 2022 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. 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. As of March 31, 2022 38 Benchmark Disclosures ICE BofA 1-3 Yr US Treasury Index The ICE BofA 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. ICE BofA 3-Month US Treasury Bill Index The ICE BofA 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 rebalancingdate. ICE BofA 1-3 Yr AAA-A US Corp & Govt Index The ICE BofA 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 schedule,and a minimum amount outstanding of $1 billion for US Treasuries and $250 million for all other securities. As of March 31, 2022 39 Supplement to Quarterly Investment Report Town Managed Cash Account Average Average Maturity Yield Cost Town Funds 0 0.278%14,491,512 Trust Fund 0 0.278%2,272,354 . Community Development Agency DS/Successor Agency 0 0.278%138,716 NERIAD 0 0.278%380,872 Total LAIF Funds Managed by the Town 17,283,453$ LAIF Funds Managed/Reported by Chandler Investments 75,270 Total LAIF Funds 17,358,723$ LAIF Funds Managed by the Town (Local Agency Investment Fund) February 2022