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HomeMy WebLinkAbout101524-08.1INVESTMENT REPORT Danville | As of September 30, 2024 CHANDLER ASSET MANAGEMENT | chandlerasset.com Chandler Team: For questions about your account, please call (800) 317-4747, or contact clientservice@chandlerasset.com Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement. TABLE OF CONTENTS ECONOMIC UPDATE ACCOUNT PROFILE PORTFOLIO HOLDINGS TRANSACTIONS 1 ECONOMIC UPDATE 2 ▪ ▪ ▪ Recent economic data suggests positive but slower growth this year fueled by consumer spending. While the consumer has been resilient, declining savings rates, growing credit card debt, higher delinquencies, and a moderating labor market pose potential headwinds to future economic growth. Inflationary trends are subsiding,but core levels remain above the Fed’s target. The labor market is showing signs of cooling, reflecting an improved balance between supply and demand for workers. Given the cumulative effects of restrictive monetary policy and tighter financial conditions,we believe the economy will gradually soften and the Fed will continue to lower rates at a measured pace through this year with the ability to move more aggressively should the employment data warrant. The Federal Open Market Committee (FOMC) delivered the first rate cut of the easing cycle at the September meeting. Although a reduction in the Fed Funds Rate was widely anticipated, the magnitude was somewhat of a surprise,as market participants were split between whether the FOMC would cut by 25 basis points or 50 basis points. Chair Jerome Powell reiterated previous statements acknowledging that monetary policy has shifted into a more balanced approach addressing price stability and full employment in tandem. The Fed released the quarterly Summary of Economic Projections (SEP) which now forecasts a substantially lower median Fed Funds Rate expectation among Fed Governors in 2025 due to lower inflation expectations and a higher projected unemployment rate.We believe the Fed will continue to lower rates at a measured pace through this year with the ability to move more aggressively should the employment data warrant. The US Treasury yield curve shifted lower in September following the 50 basis points rate cut by the FOMC mid-month. The 2-year Treasury yield fell 28 basis points to 3.64%, the 5-year Treasury dropped 15 basis points to 3.56%, and the 10-year Treasury yield declined 12 basis points to 3.78%. The 2-year and 10-year Treasury yield points on the curve began to normalize to +14 basis points at September month-end versus -2 basis points at August month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -47 basis points. The inversion between 3-month and 10-year Treasuries ended the month of September at -85 basis points. ECONOMIC UPDATE 3 -400 -200 0 200 400 600 800 1,000 MO M C h a n g e I n T h o u s a n d s ( 0 0 0 ' s ) Nonfarm Payroll (000's) Non-farm Payroll (000's) 3-month average (000's) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Unemployment Rate Underemployment Rate (U6) Unemployment Rate (U3) Ra t e ( % ) The U.S. economy added 254,000 jobs in September, well above expectations of 150,000. The three-month moving average and six-month moving average payrolls continued to trend weaker to 186,000 and 167,000 respectively. The unemployment rate declined to 4.1%in September, and the labor participation rate remained at 62.7%, remaining below the pre-pandemic level of 63.3%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons declined to 7.7% from 7.9%. Average hourly earnings rose 4.0% year-over-year in September. U.S. labor market data from September surprised to the upside, with strong job growth and a sharper-than-expected drop in unemployment, suggesting the economy may be more resilient than anticipated. The Federal Reserve’s view is that there has been “substantial”progress towards better balance in the labor market between demand and supply for workers. Source: US Department of Labor Source: US Department of Labor EMPLOYMENT 4 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Job Openings Recession Historical Average In T h o u s a n d s ( 0 0 0 ' s ) The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) increased to 8.04 million job openings in August from an upwardly revised 7.71 million in July. Job openings have increased to a ratio of 1.13 jobs for each unemployed individual. The quits rate, an indicator of job availability, declined to 1.9% from downwardly revised 2.0%in July. That is the lowest level since 2020.While the current level of job openings remains elevated from a historical perspective, the trend is decelerating. Source: US Department of Labor JOB OPENINGS & LABOR TURNOVER SURVEY 5 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Consumer Price Index (CPI) CPI YOY % Change Core CPI YOY % Change YO Y ( % ) C h a n g e 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Personal Consumption Expenditures (PCE) PCE Price Deflator YOY % Change PCE Core Deflator YOY % Change Fed Target YO Y ( % ) C h a n g e In August, the Consumer Price Index (CPI) rose 0.2% month-over-month and 2.5% year-over-year, down from2.9%in July, largely due to a drop in gasoline prices. The Core CPI, which excludes volatile food and energy components, rose more than expected in August by 0.3% month-over-month and 3.2% year-over-year. The Personal Consumption Expenditures (PCE) Index rose 0.1% from the previous month and 2.2% year-over-year in August. The Core PCE deflator (the Fed’s preferred gauge) increased 0.1% month-over-month and 2.7% over the past year, still above the Fed’s 2%inflation target. Much of the lingering inflation has been driven by shelter costs and demand for services, but recent data provide confirmation that inflation is moderating. Source: US Department of Labor Source: US Department of Commerce INFLATION 6 -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Retail Sales YOY % Change YO Y ( % ) C h a n g e Retail Sales grew more than expected month-over-month in August at 0.1% after growth of 1.1%in July.On a year-over-year basis, Retail Sales grew 2.1%in August versus 2.9%in July. Control-group sales, which are used to calculate gross domestic product, rose 0.3% month- over-month in August after last month’s data was revised higher to an increase of 0.4%. E-commerce contributed the most to the increase. The Conference Board’s Consumer Confidence Index for September came in below expectations, contracting to 98.7 after an upward revision to 105.6 in August. The decline reflects recent softening in labor market conditions, and less optimism about the job market and income growth. While the consumer has been resilient, consumption has begun to moderate in the face of declining savings rates, growing credit card debt, higher delinquencies, and a moderating labor market. 0 20 40 60 80 100 120 140 160 In d e x L e v e l Consumer Confidence Recession Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09) CONSUMER 7 -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Leading Economic Indicators (LEI) Recession YO Y (% ) C h a n g e -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 Chicago Fed National Activity Index (CFNAI) Recession 3 M o n t h A v e r a g e The Conference Board’s Leading Economic Index (LEI) remained in negative territory at -0.2%in August, improving from -0.6%in July. The index dropped 5.0% year-over-year. The improvement can be attributed to a decrease in the yield curve inversion,an increase in building permits, and stock market performance. The Chicago Fed National Activity Index (CFNAI) increased to 0.12 in August from a downwardly revised -0.42 in July, which was above consensus expectations. The three-month moving average fell to -0.17 in August from-0.13 in July, indicating below-trend growth expectations for the economy. Source: The Conference Board Source: Federal Reserve Bank of Chicago LEADING INDICATORS OF ECONOMIC ACTIVITY 8 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 In T h o u s a n d s o f U n i t s Annualized Housing Starts Multi Family Housing Starts Single Family Housing Starts Housing starts surprised to the upside on a month-over-month basis in August, increasing 9.6%to 1.356 million units versus the previous decline of 6.9% the prior month. Starts were led by the single-family home sector. Total starts were up 3.9% year-over-year. The Freddie Mac average rate for a 30-year fixed mortgage edged down to 6.35%in August from 6.85%in July. According to the Case-Shiller 20-City Home Price Index, housing prices rose 5.9% year-over-year in July, decelerating from 6.5% reported in the previous month. Although the trend is gradually improving, tight inventories and higher mortgage rates continue to impact affordability. Source: US Department of Commerce Source: S&P -20.0% -16.0% -12.0% -8.0% -4.0% 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% S&P/Case-Shiller 20 City Composite Home Price Index Recession YO Y ( % ) C h a n g e HOUSING 9 40 45 50 55 60 65 70 Institute of Supply Management (ISM) Surveys ISM Manufacturing ISM Services EXPANDING CONTRACTING The Institute for Supply Management (ISM) Manufacturing index contracted at a slower rate of 47.2 in September compared to 47.5 in August. Demand remains subdued and companies are continuing to reduce head counts through layoffs, attrition and hiring freezes. The ISM Services Index increased to 54.9 in September, increasing from 51.7 in August,due stronger production and new orders. A reading over 50 indicates expansion, while a reading under 50 indicates contraction. Source: Institute for Supply Management SURVEY BASED MEASURES 10 Components of GDP 9/23 12/23 3/24 6/24 1.7% 2.3% 1.3% 1.9% 1.8% 0.2% 0.6% 1.5% -0.1% 0.1% -0.6% -0.9% 0.3% 0.0% 0.0% 0.3% 0.6% 0.6% 0.3% 0.3% 4.4% 3.2% 1.6% 3.0% Personal Consumption Expenditures Gross Private Domestic Investment Net Exports and Imports Federal Government Expenditures Total State and Local (Consumption and Gross Investment) -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Source: US Department of Commerce Source: US Department of Commerce According to the third estimate, second quarter GDP increased at an annualized rate of 3.0%, unchanged from the prior estimate. Growth continues to be powered by personal consumption expenditures. Gross fixed investment, government consumption expenditures, and inventories also had positive contributions, with a negative offset by net exports. The consensus projection calls for 2.0% growth in the third quarter and 2.6% growth for the full year 2024. GROSS DOMESTIC PRODUCT (GDP) 11 Source: Federal Reserve Source: Bloomberg 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 Federal Reserve Balance Sheet Assets Recession In $ m i l l i o n s The Federal Open Market Committee (FOMC) delivered the first rate cut of the easing cycle at the September meeting. Although a reduction in the Fed Funds Rate was widely anticipated, the magnitude was somewhat of a surprise, as market participants were split between whether the FOMC would cut by 25 basis points or 50 basis points. Chair Jerome Powell reiterated previous statements acknowledging that monetary policy has shifted into a more balanced approach addressing price stability and full employment in tandem. The Fed released the quarterly Summary of Economic Projections (SEP) which now forecasts a substantially lower median Fed Funds Rate expectation among Fed Governors in 2025 to 3.1 – 3.6%. The Fed continues to reduce its holdings of U.S. Treasury securities and agency mortgage-backed securities as per its predefined schedule of $25 billion and $35 billion per month. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by approximately $1.8T to approximately $7.1T. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Effective Federal Funds Rate Recession Yi e l d ( % ) FEDERAL RESERVE 12 Source: Bloomberg Source: Bloomberg 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Note Yields 2-Year 5-Year 10-Year Y i e l d ( % ) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Yield Curve Sep-24 Jun-24 Sep-23 Yi e l d ( % ) At the end of September, the 2-year Treasury yield was 140 basis points lower, and the 10-Year Treasury yield was 79 basis points lower, year-over-year. The 2-year and 10-year Treasury yield points on the curve began to normalize to +14 basis points at September month-end versus -2 basis points at August month-end. The yield curve inversion which began in July 2022 was historically long. The average historical spread (since 2003)is about +110 basis points. The inversion between 3-month and 10-year Treasuries tightened to -85 basis points in September from -121 basis points in August. BOND YIELDS 13 ACCOUNT PROFILE 14 OBJECTIVES 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. 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"). 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. 15 STATEMENT OF COMPLIANCE Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Rules Name Limit Actual Compliance Status Notes AGENCY MORTGAGE SECURITIES (CMOS) Max % (MV; ABS, CMO, & MBS)15.0 10.9 Compliant Max % Issuer (MV)30.0 7.0 Compliant Max Maturity (Years)5.0 4.0 Compliant Min Rating (AAA by 1)0.0 0.0 Compliant ASSET-BACKED SECURITIES (ABS) Max % (MV; ABS, CMO & MBS)15.0 10.9 Compliant Max % Issuer (MV)5.0 1.1 Compliant Max Maturity (Years)5 4 Compliant Min Rating (AAA by 1)0.0 0.0 Compliant BANKERS' ACCEPTANCES Max % (MV)40.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Days)180 0.0 Compliant Min Rating (A-1 by 1 or A- by 1)0.0 0.0 Compliant COLLATERALIZED BANK DEPOSITS Max % (MV)100.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant COLLATERALIZED TIME DEPOSITS (NON- NEGOTIABLE CD/TD) Max % (MV)100.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant COMMERCIAL PAPER Max % (MV)25.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Days)270 0.0 Compliant Min Rating (A-1 by 1 or A- by 1)0.0 0.0 Compliant CORPORATE MEDIUM TERM NOTES 16 STATEMENT OF COMPLIANCE Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Rules Name Limit Actual Compliance Status Notes Max % (MV)20.0 16.8 Compliant Max % Issuer (MV)5.0 1.4 Compliant Max Maturity (Years)5 2 Compliant Min Rating (A- by 1)0.0 0.0 Compliant FDIC INSURED TIME DEPOSITS (NON- NEGOTIABLE CD/TD) Max % (MV)100.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant FEDERAL AGENCIES Max % (MV)100.0 24.2 Compliant Max % Issuer (MV)30.0 14.3 Compliant Max Callables (MV)20.0 0.9 Compliant Max Maturity (Years)5 4 Compliant LOCAL AGENCY INVESTMENT FUND (LAIF) Max % (MV)30.0 0.0 Compliant MONEY MARKET MUTUAL FUNDS Max % (MV)20.0 0.2 Compliant Max % Issuer (MV)20.0 0.2 Compliant Min Rating (AAA by 2)0.0 0.0 Compliant MORTGAGE-BACKED SECURITIES (NON- AGENCY) Max % (MV)15.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5.0 0.0 Compliant Min Rating (AAA by 1)0.0 0.0 Compliant MUNICIPAL SECURITIES (CA, LOCAL AGENCY) Max % (MV)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant 17 STATEMENT OF COMPLIANCE Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Rules Name Limit Actual Compliance Status Notes Max Maturity (Years)5 0.0 Compliant Min Rating (A- by 1)0.0 0.0 Compliant MUNICIPAL SECURITIES (CA, OTHER STATES) Max % (MV)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5 0.0 Compliant Min Rating (A- by 1)0.0 0.0 Compliant MUTUAL FUNDS Max % (MV)20.0 0.0 Compliant Max % Issuer (MV)10.0 0.0 Compliant Min Rating (AAA by 2)0.0 0.0 Compliant NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD) Max % (MV)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5 0.0 Compliant Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit)0.0 0.0 Compliant REPURCHASE AGREEMENTS Max % (MV)15.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Days)30.0 0.0 Compliant SUPRANATIONAL OBLIGATIONS Max % (MV)30.0 4.6 Compliant Max % Issuer (MV)5.0 1.6 Compliant Max Maturity (Years)5 3 Compliant Min Rating (AA- by 1)0.0 0.0 Compliant U.S. TREASURIES Max % (MV)100.0 43.4 Compliant 18 STATEMENT OF COMPLIANCE Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Rules Name Limit Actual Compliance Status Notes Max % Issuer (MV)100.0 43.3 Compliant Max Maturity (Years)5 4 Compliant 19 PORTFOLIO CHARACTERISTICS Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Benchmark*9/30/2024 Portfolio 6/30/2024 Portfolio Average Maturity (yrs)1.85 2.05 2.05 Average Modified Duration 1.77 1.83 1.82 Average Purchase Yield 3.46%3.23% Average Market Yield 3.71%3.97%4.93% Average Quality**AA+AA+AA+ Total Market Value 96,993,874 94,325,543 *Benchmark: ICE BofA 1-3 Year US Treasury Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 20 SECTOR DISTRIBUTION Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Sector as a Percentage of Market Value Sector 09/30/2024 06/30/2024 US Treasury 43.40%45.11% Agency 24.07%22.65% Corporate 16.77%14.52% Agency CMBS 7.02%7.00% Supras 4.61%5.95% ABS 3.96%4.57% Money Mkt Fd 0.16%0.14% Cash 0.00%0.06% 21 ISSUERS Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Issuer Investment Type % Portfolio United States US Treasury 43.40% Farm Credit System Agency 14.21% Federal Home Loan Banks Agency 8.86% FHLMC Agency CMBS 7.02% International Finance Corporation Supras 2.01% International Bank for Recon and Dev Supras 1.55% State Street Corporation Corporate 1.40% Apple Inc.Corporate 1.28% Caterpillar Inc.Corporate 1.07% Bank of America Corporation Corporate 1.07% Cisco Systems, Inc.Corporate 1.06% Chase Issuance Trust ABS 1.05% Inter-American Development Bank Supras 1.05% Deere & Company Corporate 1.05% Microsoft Corporation Corporate 1.03% Mastercard Incorporated Corporate 1.03% Amazon.com, Inc.Corporate 1.02% Honeywell International Inc.Corporate 1.01% Visa Inc.Corporate 1.01% FNMA Agency 1.00% Toyota Motor Corporation Corporate 0.99% BMW Vehicle Owner Trust ABS 0.77% BlackRock, Inc.Corporate 0.73% Walmart Inc.Corporate 0.72% PACCAR Inc Corporate 0.55% Bank of America Credit Card Trust ABS 0.50% Colgate-Palmolive Company Corporate 0.48% Morgan Stanley Corporate 0.47% JPMorgan Chase & Co.Corporate 0.43% Toyota Auto Receivables Owner Trust ABS 0.41% 22 ISSUERS Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Issuer Investment Type % Portfolio PepsiCo, Inc.Corporate 0.38% Hyundai Auto Receivables Trust ABS 0.29% Honda Auto Receivables Owner Trust ABS 0.27% GM Financial Securitized Term ABS 0.23% GM Financial Automobile Leasing Trus ABS 0.22% John Deere Owner Trust ABS 0.21% Allspring Group Holdings LLC Money Mkt Fd 0.16% Cash Cash 0.00% TOTAL 100.00% 23 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+ Portfolio 8.6%9.2%13.6%23.4%30.8%11.8%2.7%0.0%0.0% ICE BofA 1-3 Year US Treasury Index 0.0%0.0%3.6%58.4%38.0%0.0%0.0%0.0%0.0% DURATION DISTRIBUTION Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Portfolio Compared to the Benchmark 24 QUALITY DISTRIBUTION Rating 09/30/2024 06/30/2024 AAA 10.6%12.5% AA 79.1%76.6% A 10.0%10.4% NR 0.3%0.4% Rating 09/30/2024 06/30/2024 AAA 83.3%85.2% AA 5.9%4.3% A 8.5%8.0% NR 2.2%2.5% Rating 09/30/2024 06/30/2024 AAA 7.3%7.8% AA 74.8%74.0% A 4.1%4.1% NR 13.8%14.0% Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 S&P Rating Moody’s Rating Fitch Rating 25 HISTORICAL AVERAGE PURCHASE YIELD Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Purchase Yield as of 09/30/24 = 3.46% 26 Growth of $1 Million GROWTH OVER TIME Danville Short Term Treasury Pool |Account #21 |As of September 30,2024 As of 09/30/2024 Dollar Value Return Danville Total Return $2,666,235 3.38% Danville Realized Return $2,633,791 3.34% LAIF $2,143,682 2.62% Historical Return of $1 Million Invested on March 31, 1995 27 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception TOTAL RATE OF RETURN Danville ST Treasury Pool 2.83%7.02%4.94%1.75%1.78%1.65%3.40% Benchmark 2.87%6.74%4.58%1.33%1.51%1.42%3.14% REALIZED RATE OF RETURN Danville ST Treasury Pool 0.83%2.88%2.29%1.97%1.92%1.64%3.34% *Periods over 1 year are annualized. Benchmark: ICE BofA 1-3 Year US Treasury Index Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. 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. INVESTMENT PERFORMANCE Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Total and Realized Rate of Return : Inception | 04/01/1995 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 3 months 12 months 2 years 3 years 5 years 10 years Since Inception Danville Short Term Treasury Pool Benchmark Realized Rate of Return 28 PORTFOLIO CHARACTERISTICS Danville NERIAD Improvement Fund (89-1 90A) | Account #24 | As of September 30, 2024 Benchmark*9/30/2024 Portfolio 6/30/2024 Portfolio Average Maturity (yrs)0.16 0.56 0.56 Average Modified Duration 0.16 0.55 0.54 Average Purchase Yield 4.91%5.13% Average Market Yield 4.74%4.28%5.21% Average Quality**AA+AAA AAA Total Market Value 955,553 940,205 *Benchmark: ICE BofA 3-Month US Treasury Bill Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 29 ISSUERS Danville NERIAD Improvement Fund (89-1 90A) | Account #24 | As of September 30, 2024 Issuer Investment Type % Portfolio United States US Treasury 97.22% Allspring Group Holdings LLC Money Mkt Fd 2.77% Cash Cash 0.01% TOTAL 100.00% 30 PORTFOLIO HOLDINGS 31 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration ABS 47788UAC6 JDOT 2021 A3 0.36 09/15/2025 1,338.58 03/02/2021 0.37% 1,338.33 1,338.54 99.81 5.41% 1,335.99 0.21 0.00% (2.55) Aaa/NA AAA 0.96 0.04 89190GAC1 TAOT 2021-B A3 0.26 61,451.67 06/08/2021 61,445.05 99.63 61,225.04 0.06%NA/AAA 1.13 11/17/2025 0.27%61,450.44 5.34%7.10 (225.39)AAA 0.07 43815GAC3 HAROT 2021-4 A3 0.88 70,607.72 11/16/2021 70,592.84 98.70 69,688.41 0.07%Aaa/NA 1.31 01/21/2026 0.89%70,603.68 5.24%17.26 (915.27)AAA 0.30 47789QAC4 JDOT 2021-B A3 0.52 65,753.41 07/13/2021 65,747.55 98.83 64,983.12 0.07%Aaa/NA 1.46 03/16/2026 0.53%65,751.87 4.69%15.20 (768.75)AAA 0.28 89238JAC9 TAOT 2021-D A3 0.71 70,507.05 11/09/2021 70,505.54 98.81 69,669.29 0.07%NA/AAA 1.54 04/15/2026 0.71%70,506.61 4.64%22.25 (837.32)AAA 0.30 43815BAC4 HAROT 2022-1 A3 1.88 195,271.63 02/15/2022 195,242.26 98.81 192,943.73 0.20%Aaa/AAA 1.62 05/15/2026 1.89%195,261.60 4.89%163.16 (2,317.87)NA 0.39 05602RAD3 BMWOT 2022-A A3 3.21 140,236.72 05/10/2022 140,229.43 99.33 139,294.65 0.14%Aaa/AAA 1.90 08/25/2026 3.23%140,233.79 4.75%75.03 (939.14)NA 0.44 47787JAC2 JDOT 2022 A3 0.36 140,680.01 03/10/2022 140,648.89 98.85 139,062.00 0.14%Aaa/NA 1.96 09/15/2026 2.34%140,667.66 4.69%145.06 (1,605.65)AAA 0.49 448977AD0 HART 2022-A A3 2.22 280,655.23 03/09/2022 280,644.42 98.90 277,567.04 0.29%NA/AAA 2.04 10/15/2026 2.23%280,651.01 4.95%276.91 (3,083.97)AAA 0.40 380146AC4 GMCAR 2022-1 A3 1.26 67,908.27 01/11/2022 67,902.37 98.64 66,986.16 0.07%NA/AAA 2.13 11/16/2026 1.27%67,906.06 4.79%35.65 (919.90)AAA 0.38 379929AD4 GMALT 2023-3 A3 5.38 210,000.00 08/08/2023 209,974.82 100.76 211,594.24 0.22%NA/AAA 2.14 11/20/2026 5.38%209,983.52 4.56%345.22 1,610.71 AAA 0.86 362585AC5 GMCAR 2022-2 A3 3.1 156,430.50 04/05/2022 156,397.80 99.15 155,107.41 0.16%Aaa/AAA 2.38 02/16/2027 3.13%156,416.12 4.69%202.06 (1,308.71)NA 0.54 05592XAD2 BMWOT 2023-A A3 5.47 175,000.00 07/11/2023 174,968.99 101.24 177,169.14 0.18%NA/AAA 3.41 02/25/2028 5.47%174,977.12 4.43%159.54 2,192.03 AAA 1.12 89239FAD4 TAOT 2023-D A3 5.54 255,000.00 11/07/2023 254,972.51 102.33 260,953.03 0.27%NA/AAA 3.88 08/15/2028 6.30%254,977.61 4.19%627.87 5,975.42 AAA 1.64 161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 995,000.00 09/07/2023 5.17% 994,724.19 994,781.86 102.17 4.04% 1,016,595.88 2,281.87 1.05% 21,814.02 NR/AAA AAA 3.96 1.82 32 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 096919AD7 BMWOT 2024-A A3 5.18 02/26/2029 420,000.00 06/04/2024 5.24% 419,936.20 419,940.35 102.19 4.05% 429,207.53 362.60 0.45% 9,267.18 Aaa/AAA NA 4.41 1.84 05522RDJ4 BACCT 2024-1 A 4.93 03/15/2029 475,000.00 06/06/2024 4.93% 474,973.35 474,975.04 102.32 4.03% 486,024.89 1,040.78 0.50% 11,049.85 Aaa/AAA NA 4.45 2.41 Total ABS 3,780,840.78 4.23% 3,780,244.53 3,780,422.86 101.04 4.36% 3,819,407.56 5,777.75 3.96% 38,984.70 Aaa/AAA AAA 3.26 1.34 AGENCY 3130APQ81 FEDERAL HOME LOAN BANKS 1.0 11/08/2024 900,000.00 08/01/2022 3.09% 858,798.00 898,111.37 99.60 4.86% 896,426.77 3,575.00 0.93% (1,684.60) Aaa/AA+ AA+ 0.11 0.10 3130AQF40 FEDERAL HOME LOAN BANKS 1.0 12/20/2024 1,000,000.00 07/27/2022 3.13% 950,740.00 995,501.37 99.20 4.67% 991,990.98 2,805.56 1.03% (3,510.39) Aaa/AA+ AA+ 0.22 0.22 3133ENKS8 FEDERAL FARM CREDIT BANKS FUNDING CORP 1.125 01/06/2025 595,000.00 01/06/2022 1.20% 593,661.25 594,880.97 99.09 4.60% 589,592.42 1,580.47 0.61% (5,288.55) Aaa/AA+ AA+ 0.27 0.26 3133ENPG9 FEDERAL FARM CREDIT BANKS FUNDING CORP 1.75 02/14/2025 1,500,000.00 -- 1.83% 1,496,422.50 1,499,552.40 98.95 4.62% 1,484,290.01 3,427.08 1.54% (15,262.40) Aaa/AA+ AA+ 0.38 0.36 3133ENPY0 FEDERAL FARM CREDIT BANKS FUNDING CORP 1.75 02/25/2025 750,000.00 03/14/2022 2.05% 743,440.50 749,105.52 98.85 4.66% 741,412.10 1,312.50 0.77% (7,693.43) Aaa/AA+ AA+ 0.41 0.39 3133ENWH9 FEDERAL FARM CREDIT BANKS FUNDING CORP 2.9 05/09/2025 1,000,000.00 05/03/2022 2.97% 998,050.00 999,608.58 99.23 4.20% 992,254.15 11,438.89 1.03% (7,354.43) Aaa/AA+ AA+ 0.61 0.59 3135G05X7 FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.375 08/25/2025 1,000,000.00 12/09/2021 1.17% 971,060.00 992,989.42 96.87 3.95% 968,654.49 375.00 1.00% (24,334.93) Aaa/AA+ AA+ 0.90 0.88 3133EPNG6 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.375 06/23/2026 2,000,000.00 06/22/2023 4.42% 1,997,620.00 1,998,628.18 101.21 3.64% 2,024,164.34 23,819.44 2.10% 25,536.16 Aaa/AA+ AA+ 1.73 1.64 33 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 3133EPSW6 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.5 08/14/2026 1,500,000.00 08/09/2023 4.58% 1,496,550.00 1,497,853.19 101.54 3.64% 1,523,028.45 8,812.50 1.58% 25,175.26 Aaa/AA+ AA+ 1.87 1.77 3130AXU63 FEDERAL HOME LOAN BANKS 4.625 11/17/2026 1,000,000.00 11/30/2023 4.53% 1,002,530.00 1,001,816.83 102.01 3.63% 1,020,139.03 17,215.28 1.06% 18,322.20 Aaa/AA+ AA+ 2.13 1.98 3130B1EF0 FEDERAL HOME LOAN BANKS 4.625 06/11/2027 1,000,000.00 06/26/2024 4.57% 1,001,530.00 1,001,393.87 102.60 3.60% 1,025,965.66 17,600.69 1.06% 24,571.79 Aaa/AA+ AA+ 2.70 2.48 3133EPH81 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.5 10/04/2027 1,500,000.00 12/08/2023 4.41% 1,504,500.00 1,503,547.02 102.41 3.65% 1,536,146.82 33,187.50 1.59% 32,599.80 Aaa/AA+ AA+ 3.01 2.74 3133EPC60 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.625 11/15/2027 1,750,000.00 11/09/2023 4.73% 1,743,507.50 1,744,933.98 102.87 3.64% 1,800,194.94 30,576.39 1.87% 55,260.95 Aaa/AA+ AA+ 3.13 2.85 3130ATUS4 FEDERAL HOME LOAN BANKS 4.25 12/10/2027 1,500,000.00 05/15/2023 3.66% 1,536,930.00 1,525,777.98 101.97 3.59% 1,529,583.75 19,656.25 1.59% 3,805.77 Aaa/AA+ AA+ 3.19 2.93 3133EPGW9 FEDERAL FARM CREDIT BANKS FUNDING CORP 3.875 04/25/2028 1,500,000.00 04/27/2023 3.76% 1,507,905.00 1,505,652.01 100.81 3.63% 1,512,213.80 25,187.50 1.57% 6,561.79 Aaa/AA+ AA+ 3.57 3.25 3130AWC24 FEDERAL HOME LOAN BANKS 4.0 06/09/2028 1,500,000.00 07/06/2023 4.49% 1,467,705.00 1,475,778.75 101.53 3.55% 1,522,979.06 18,666.67 1.58% 47,200.31 Aaa/AA+ AA+ 3.69 3.37 3130AVBD3 FEDERAL HOME LOAN BANKS 4.5 03/09/2029 1,500,000.00 04/26/2024 4.74% 1,484,775.00 1,486,096.67 103.58 3.62% 1,553,661.56 4,125.00 1.61% 67,564.88 Aaa/AA+ AA+ 4.44 4.00 3133ERSP7 FEDERAL FARM CREDIT BANKS FUNDING CORP 3.5 09/10/2029 1,500,000.00 09/17/2024 3.49% 1,500,945.00 1,500,938.24 99.43 3.63% 1,491,522.53 3,062.50 1.55% (9,415.72) Aaa/AA+ AA+ 4.94 4.49 Total Agency 22,995,000.00 3.71% 22,856,669.75 22,972,166.37 100.94 3.88% 23,204,220.82 226,424.22 24.07% 232,054.45 Aaa/AA+ AA+ 2.35 2.16 AGENCY CMBS 3137BVZ82 FHMS K-063 A2 3.43 01/25/2027 1,000,000.00 06/06/2023 4.47% 965,625.00 978,297.81 98.82 3.92% 988,172.50 2,858.33 1.03% 9,874.69 Aaa/AA+ AAA 2.32 2.06 34 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 3137F2LJ3 FHMS K-066 A2 3.117 1,000,000.00 05/18/2023 958,984.38 97.84 978,365.80 1.02%Aaa/AA+2.73 06/25/2027 4.23%972,851.57 3.94%2,597.50 5,514.23 AAA 2.45 3137FBBX3 FHMS K-068 A2 3.244 1,000,000.00 05/12/2023 970,820.31 98.16 981,581.00 1.02%Aaa/AA+2.90 08/25/2027 3.98%980,369.68 3.88%2,703.33 1,211.32 AA+2.66 3137FBU79 FHMS K-069 A2 3.187 1,135,998.00 12/27/2023 1,093,708.70 97.89 1,112,014.92 1.15%Aaa/AAA 2.99 09/25/2027 4.27%1,102,437.56 3.92%3,017.02 9,577.36 AA+2.70 3137FETN0 FHMS K-073 A2 3.35 720,000.00 05/24/2023 691,987.50 98.31 707,833.30 0.73%Aaa/AA+3.32 01/25/2028 4.27%700,172.43 3.87%2,010.00 7,660.87 AAA 2.99 3137FJEH8 FHMS K-081 A2 3.9 1,000,000.00 09/05/2023 957,968.75 99.74 997,440.10 1.03%Aaa/AA+3.90 08/25/2028 4.85%967,108.02 3.93%3,250.00 30,332.08 AAA 3.53 3137FJKE8 FHMS K-082 A2 3.92 1,000,000.00 10/30/2023 940,742.19 99.81 998,144.70 1.04%Aaa/AA+3.99 09/25/2028 5.31%951,955.85 3.93%3,266.67 46,188.85 AAA 3.57 Total Agency 6,579,836.83 98.66 6,763,552.32 7.02%Aaa/AA+3.16 CMBS 6,855,998.00 4.49%6,653,192.92 3.92%19,702.85 110,359.40 AAA 2.85 CASH CCYUSD Receivable 2,883.37 -- 0.00% 2,883.37 2,883.37 1.00 0.00% 2,883.37 0.00 0.00% 0.00 Aaa/AAA AAA 0.00 0.00 2,883.37 1.00 2,883.37 0.00%Aaa/AAA 0.00 Total Cash 2,883.37 0.00%2,883.37 0.00%0.00 0.00 AAA 0.00 CORPORATE 57636QAN4 MASTERCARD INC 2.0 03/03/2025 1,000,000.00 02/25/2022 2.03% 999,010.00 999,862.05 98.94 4.54% 989,435.97 1,555.56 1.03% (10,426.08) Aa3/A+ NA 0.42 0.41 037833DT4 APPLE INC 1.125 05/11/2025 500,000.00 02/25/2022 485,870.00 97.98 489,886.42 0.51%Aaa/AA+0.61 2.03%497,312.03 4.52%2,187.50 (7,425.62)NA 0.59 194162AM5 COLGATE-PALMOLIVE CO 3.1 470,000.00 08/01/2022 469,567.60 99.13 465,931.90 0.48%Aa3/A+0.87 08/15/2025 3.13%469,875.22 4.12%1,861.72 (3,943.32)NA 0.85 931142EW9 WALMART INC 3.9 09/09/2025 700,000.00 09/26/2022 685,776.00 99.80 698,631.57 0.72%Aa2/AA 0.94 4.64%695,469.98 4.11%1,668.33 3,161.59 AA 0.91 35 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 594918BJ2 MICROSOFT CORP 3.125 11/03/2025 1,000,000.00 01/20/2023 4.28% 970,060.00 988,248.40 99.06 4.02% 990,563.01 12,847.22 1.03% 2,314.61 Aaa/AAA WR 1.09 1.04 857477BR3 STATE STREET CORP 1.746 02/06/2026 265,000.00 02/02/2022 1.75% 265,000.00 265,000.00 98.82 5.27% 261,876.49 706.89 0.27% (3,123.51) A1/A AA- 1.35 0.34 037833BY5 APPLE INC 3.25 02/23/2026 750,000.00 02/01/2023 4.27% 728,265.00 740,067.34 99.11 3.91% 743,352.18 2,572.92 0.77% 3,284.84 Aaa/AA+ NA 1.40 1.34 89236TJK2 TOYOTA MOTOR CREDIT CORP 1.125 06/18/2026 1,000,000.00 02/08/2024 4.68% 921,800.00 942,969.66 95.34 3.96% 953,395.31 3,218.75 0.99% 10,425.65 A1/A+ A+ 1.71 1.66 69371RS56 PACCAR FINANCIAL CORP 5.05 08/10/2026 515,000.00 08/03/2023 5.07% 514,742.50 514,840.71 102.07 3.88% 525,645.23 3,684.40 0.55% 10,804.52 A1/A+ NA 1.86 1.75 06428CAA2 BANK OF AMERICA NA 5.526 08/18/2026 1,000,000.00 08/24/2023 5.48% 1,001,360.00 1,000,844.36 102.67 4.03% 1,026,744.55 6,600.50 1.07% 25,900.19 Aa1/A+ AA 1.88 1.69 61690U7W4 MORGAN STANLEY BANK NA 5.882 10/30/2026 440,000.00 10/30/2023 5.88% 440,000.00 440,000.00 103.60 4.06% 455,854.12 10,855.56 0.47% 15,854.12 Aa3/A+ AA- 2.08 1.83 438516BL9 HONEYWELL INTERNATIONAL INC 2.5 11/01/2026 1,000,000.00 01/11/2023 4.42% 933,280.00 963,419.36 97.41 3.81% 974,070.71 10,416.67 1.01% 10,651.35 A2/A A 2.09 1.98 713448FW3 PEPSICO INC 5.125 11/10/2026 360,000.00 11/08/2023 5.13% 359,902.80 359,931.71 102.56 3.85% 369,224.27 7,226.25 0.38% 9,292.55 A1/A+ NA 2.11 1.88 48125LRU8 JPMORGAN CHASE BANK NA 5.11 12/08/2026 405,000.00 12/05/2023 5.11% 405,000.00 405,000.00 102.25 4.02% 414,106.47 6,496.09 0.43% 9,106.47 Aa2/A+ AA 2.19 1.95 24422EXF1 JOHN DEERE CAPITAL CORP 4.5 01/08/2027 1,000,000.00 01/10/2024 4.53% 999,220.00 999,407.86 101.29 3.90% 1,012,873.94 10,375.00 1.05% 13,466.08 A1/A A+ 2.27 2.12 17275RBQ4 CISCO SYSTEMS INC 4.8 02/26/2027 1,000,000.00 -- 4.81% 999,620.00 999,695.44 102.19 3.84% 1,021,884.59 4,666.67 1.06% 22,189.15 A1/AA- NA 2.41 2.17 857477CL5 STATE STREET CORP 4.993 03/18/2027 1,065,000.00 03/13/2024 4.99% 1,065,000.00 1,065,000.00 102.36 3.98% 1,090,179.21 1,920.22 1.13% 25,179.21 A1/A AA- 2.46 2.23 14913UAL4 CATERPILLAR FINANCIAL SERVICES CORP 5.0 05/14/2027 1,000,000.00 05/15/2024 4.89% 1,002,930.00 1,002,562.41 102.77 3.88% 1,027,717.99 19,027.78 1.07% 25,155.58 A2/A A+ 2.62 2.40 09290DAH4 BLACKROCK FUNDING INC 4.6 07/26/2027 690,000.00 07/17/2024 4.60% 689,979.30 689,980.57 101.94 3.86% 703,419.38 5,730.83 0.73% 13,438.81 Aa3/AA- NA 2.82 2.53 36 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 023135BC9 AMAZON.COM INC 3.15 08/22/2027 1,000,000.00 07/10/2024 4.73% 954,920.00 958,023.48 98.17 3.82% 981,680.93 3,412.50 1.02% 23,657.45 A1/AA AA- 2.89 2.72 92826CAH5 VISA INC 2.75 09/15/2027 1,000,000.00 08/19/2024 4.14% 960,360.00 961,845.17 97.23 3.75% 972,262.91 1,222.22 1.01% 10,417.74 Aa3/AA- NA 2.96 2.80 Total Corporate 16,160,000.00 4.40% 15,851,663.20 15,959,355.75 100.11 4.00% 16,168,737.13 118,253.57 16.77% 209,381.38 Aa3/A+ AA- 1.94 1.78 MONEY MARKET FUND VP4530003 ALLSPRING:TRS+ MM I 153,496.62 -- 4.79% 153,496.62 153,496.62 1.00 4.79% 153,496.62 0.00 0.16% 0.00 Aaa/AAAm NA 0.00 0.00 Total Money Market Fund 153,496.62 4.79% 153,496.62 153,496.62 1.00 4.79% 153,496.62 0.00 0.16% 0.00 Aaa/ AAAm NA 0.00 0.00 SUPRANATIONAL 45950KCR9 INTERNATIONAL FINANCE CORP 1.375 10/16/2024 1,000,000.00 07/29/2021 0.47% 1,028,980.00 1,000,371.22 99.85 4.96% 998,503.24 6,302.08 1.04% (1,867.98) Aaa/AAA NA 0.04 0.04 45950KDF4 INTERNATIONAL FINANCE CORP 4.375 01/15/2027 925,000.00 11/29/2023 4.49% 921,984.50 922,780.85 101.44 3.71% 938,323.79 8,545.36 0.97% 15,542.95 Aaa/AAA NA 2.29 2.15 4581X0EM6 INTER-AMERICAN DEVELOPMENT BANK 4.375 02/01/2027 1,000,000.00 01/30/2024 4.23% 1,004,020.00 1,003,128.70 101.49 3.70% 1,014,941.71 7,291.67 1.05% 11,813.01 Aaa/AAA NA 2.34 2.19 459058KT9 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM 3.5 07/12/2028 1,500,000.00 03/11/2024 4.23% 1,456,965.00 1,462,459.99 99.62 3.61% 1,494,278.69 11,520.83 1.55% 31,818.70 Aaa/AAA NA 3.78 3.48 Total Supranational 4,425,000.00 3.44% 4,411,949.50 4,388,740.76 100.48 3.95% 4,446,047.43 33,659.94 4.61% 57,306.67 Aaa/AAA NA 2.30 2.13 US TREASURY 37 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 912828YM6 UNITED STATES TREASURY 1.5 10/31/2024 1,350,000.00 08/06/2021 0.45% 1,395,246.09 1,351,151.30 99.72 4.89% 1,346,252.41 8,474.18 1.40% (4,898.89) Aaa/AA+ AA+ 0.08 0.08 91282CDH1 UNITED STATES TREASURY 0.75 11/15/2024 1,500,000.00 11/10/2021 0.80% 1,497,832.03 1,499,910.99 99.50 4.84% 1,492,509.80 4,249.32 1.55% (7,401.19) Aaa/AA+ AA+ 0.13 0.12 91282CDN8 UNITED STATES TREASURY 1.0 12/15/2024 850,000.00 01/26/2022 1.39% 840,636.72 849,333.10 99.27 4.60% 843,757.81 2,508.20 0.88% (5,575.29) Aaa/AA+ AA+ 0.21 0.20 912828YY0 UNITED STATES TREASURY 1.75 12/31/2024 1,500,000.00 03/15/2022 2.03% 1,488,632.81 1,498,986.86 99.28 4.67% 1,489,218.75 6,633.83 1.54% (9,768.11) Aaa/AA+ AA+ 0.25 0.24 912828Z52 UNITED STATES TREASURY 1.375 01/31/2025 1,500,000.00 02/24/2021 0.40% 1,557,011.72 1,504,843.61 98.96 4.55% 1,484,399.42 3,474.86 1.54% (20,444.20) Aaa/AA+ AA+ 0.34 0.33 912828ZC7 UNITED STATES TREASURY 1.125 02/28/2025 1,000,000.00 02/03/2022 1.43% 990,820.31 998,770.58 98.65 4.45% 986,464.84 963.40 1.02% (12,305.74) Aaa/AA+ AA+ 0.41 0.41 912828ZF0 UNITED STATES TREASURY 0.5 03/31/2025 1,350,000.00 -- 0.66% 1,342,150.39 1,348,955.74 98.11 4.38% 1,324,476.56 18.54 1.37% (24,479.18) Aaa/AA+ AA+ 0.50 0.49 912828ZL7 UNITED STATES TREASURY 0.375 04/30/2025 2,000,000.00 -- 1.52% 1,934,296.88 1,987,263.86 97.76 4.32% 1,955,140.62 3,138.59 2.03% (32,123.24) Aaa/AA+ AA+ 0.58 0.57 912828ZT0 UNITED STATES TREASURY 0.25 05/31/2025 1,500,000.00 06/11/2021 0.53% 1,483,359.38 1,497,216.98 97.42 4.23% 1,461,284.18 1,260.25 1.52% (35,932.80) Aaa/AA+ AA+ 0.67 0.65 912828ZW3 UNITED STATES TREASURY 0.25 06/30/2025 1,500,000.00 07/29/2021 0.55% 1,482,246.09 1,496,625.39 97.16 4.14% 1,457,437.50 947.69 1.51% (39,187.89) Aaa/AA+ AA+ 0.75 0.73 91282CAB7 UNITED STATES TREASURY 0.25 07/31/2025 1,350,000.00 12/02/2021 1.05% 1,310,871.09 1,341,125.70 96.90 4.08% 1,308,160.54 568.61 1.36% (32,965.16) Aaa/AA+ AA+ 0.83 0.81 912828K74 UNITED STATES TREASURY 2.0 08/15/2025 1,500,000.00 04/21/2022 2.94% 1,454,882.81 1,488,152.55 98.25 4.06% 1,473,808.59 3,831.52 1.53% (14,343.96) Aaa/AA+ AA+ 0.87 0.85 9128285C0 UNITED STATES TREASURY 3.0 09/30/2025 1,500,000.00 04/21/2022 2.96% 1,502,109.38 1,500,610.83 99.04 3.99% 1,485,632.81 123.63 1.54% (14,978.03) Aaa/AA+ AA+ 1.00 0.97 9128285J5 UNITED STATES TREASURY 3.0 10/31/2025 1,600,000.00 06/02/2022 2.87% 1,606,562.50 1,602,080.41 99.02 3.94% 1,584,250.00 20,086.96 1.64% (17,830.41) Aaa/AA+ AA+ 1.08 1.04 912828M56 UNITED STATES TREASURY 2.25 11/15/2025 1,700,000.00 06/09/2022 3.04% 1,655,839.84 1,685,561.67 98.21 3.89% 1,669,652.35 14,447.69 1.73% (15,909.32) Aaa/AA+ AA+ 1.13 1.08 38 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 9128285T3 UNITED STATES TREASURY 1,100,000.00 07/13/2022 1,079,031.25 98.52 1,083,714.84 1.12%Aaa/AA+1.25 2.625 12/31/2025 3.20%1,092,447.27 3.85%7,297.21 (8,732.43)AA+1.20 9128286L9 UNITED STATES TREASURY 2.25 1,800,000.00 08/03/2022 1,753,523.44 97.81 1,760,554.69 1.83%Aaa/AA+1.50 03/31/2026 2.99%1,780,991.61 3.77%111.26 (20,436.92)AA+1.45 9128286S4 UNITED STATES TREASURY 1,600,000.00 09/08/2022 1,542,500.00 97.92 1,566,687.50 1.63%Aaa/AA+1.58 2.375 04/30/2026 3.42%1,575,079.01 3.74%15,902.17 (8,391.51)AA+1.52 912828YG9 UNITED STATES TREASURY 2,000,000.00 06/07/2023 1,848,984.38 96.16 1,923,203.12 2.00%Aaa/AA+2.00 1.625 09/30/2026 4.09%1,908,940.95 3.64%89.29 14,262.17 AA+1.94 91282CEF4 UNITED STATES TREASURY 2.5 1,450,000.00 11/28/2022 1,363,566.41 97.43 1,412,730.48 1.47%Aaa/AA+2.50 03/31/2027 4.00%1,400,226.93 3.59%99.59 12,503.55 AA+2.39 91282CKJ9 UNITED STATES TREASURY 4.5 2,000,000.00 05/17/2024 1,995,468.75 102.18 2,043,515.62 2.12%Aaa/AA+2.54 04/15/2027 4.58%1,996,041.57 3.59%41,557.38 47,474.05 AA+2.34 91282CEW7 UNITED STATES TREASURY 3.25 1,500,000.00 10/05/2022 1,451,308.59 99.16 1,487,343.75 1.54%Aaa/AA+2.75 06/30/2027 4.00%1,471,683.81 3.57%12,319.97 15,659.94 AA+2.58 91282CFB2 UNITED STATES TREASURY 2.75 2,000,000.00 06/21/2024 1,901,875.00 97.77 1,955,390.62 2.03%Aaa/AA+2.83 07/31/2027 4.46%1,910,456.60 3.58%9,266.30 44,934.02 AA+2.68 91282CFH9 UNITED STATES TREASURY 1,600,000.00 01/20/2023 1,568,437.50 98.76 1,580,187.50 1.64%Aaa/AA+2.92 3.125 08/31/2027 3.59%1,580,022.31 3.58%4,281.77 165.20 AA+2.75 91282CFM8 UNITED STATES TREASURY 1,250,000.00 03/08/2023 1,234,130.86 101.61 1,270,068.36 1.32%Aaa/AA+3.00 4.125 09/30/2027 4.44%1,239,573.07 3.56%141.66 30,495.29 AA+2.80 9128283W8 UNITED STATES TREASURY 2.75 1,500,000.00 09/27/2024 1,464,140.63 97.38 1,460,625.00 1.52%Aaa/AA+3.38 02/15/2028 3.51%1,464,169.71 3.58%5,268.34 (3,544.71)AA+3.17 9128285M8 UNITED STATES TREASURY 1,800,000.00 04/10/2024 1,687,078.13 98.26 1,768,640.62 1.83%Aaa/AA+4.13 3.125 11/15/2028 4.66%1,698,471.44 3.58%21,246.60 70,169.17 AA+3.78 91282CES6 UNITED STATES TREASURY 2.75 1,200,000.00 09/05/2024 1,155,984.38 96.43 1,157,203.13 1.20%Aaa/AA+4.67 05/31/2029 3.60%1,156,621.18 3.59%11,090.16 581.95 AA+4.29 41,588,527.36 98.45 41,832,311.40 43.40%Aaa/AA+1.62 Total US Treasury 42,500,000.00 2.72%41,925,315.03 3.98%199,398.98 (93,003.62)AA+1.53 95,225,271.16 99.38 96,390,656.65 100.00%Aa1/AA 2.05 Total Portfolio 96,873,218.76 3.46%95,835,573.68 3.97%603,217.32 555,082.97 AA+1.83 39 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration Total Market Value + Accrued 96,993,873.97 40 HOLDINGS REPORT Danville NERIAD Improvement Fund (89-1 90A) | Account #24 | As of September 30, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration CASH CCYUSD Receivable 141.61 -- 0.00% 141.61 141.61 1.00 0.00% 141.61 0.00 0.01% 0.00 Aaa/AAA AAA 0.00 0.00 Total Cash 141.61 0.00% 141.61 141.61 1.00 0.00% 141.61 0.00 0.01% 0.00 Aaa/AAA AAA 0.00 0.00 MONEY MARKET FUND VP4530003 ALLSPRING:TRS+ MM I 26,441.39 -- 4.79% 26,441.39 26,441.39 1.00 4.79% 26,441.39 0.00 2.77% 0.00 Aaa/AAAm NA 0.00 0.00 Total Money Market Fund 26,441.39 4.79% 26,441.39 26,441.39 1.00 4.79% 26,441.39 0.00 2.77% 0.00 Aaa/ AAAm NA 0.00 0.00 US TREASURY 91282CDN8 UNITED STATES TREASURY 1.0 12/15/2024 250,000.00 03/14/2024 5.21% 242,343.75 247,911.93 99.27 4.60% 248,164.06 737.70 25.99% 252.13 Aaa/AA+ AA+ 0.21 0.20 912797KJ5 UNITED STATES TREASURY 03/20/2025 200,000.00 04/26/2024 5.21% 191,044.44 195,315.55 97.97 4.44% 195,943.61 0.00 20.52% 628.06 P-1/A-1+ F1+ 0.47 0.46 912797LN5 UNITED STATES TREASURY 06/12/2025 250,000.00 06/13/2024 5.08% 237,836.98 241,489.24 97.27 4.01% 243,168.46 0.00 25.47% 1,679.22 P-1/A-1+ F1+ 0.70 0.68 912797MH7 UNITED STATES TREASURY 09/04/2025 250,000.00 09/05/2024 4.20% 239,875.83 240,573.09 96.38 4.02% 240,955.86 0.00 25.24% 382.77 P-1/A-1+ F1+ 0.93 0.91 Total US Treasury 950,000.00 4.91% 911,101.00 925,289.81 97.72 4.26% 928,231.99 737.70 97.22% 2,942.18 Aaa/AAA AAA 0.58 0.57 Total Portfolio 976,583.00 4.91% 937,684.00 951,872.81 95.03 4.28% 954,814.99 737.70 100.00% 2,942.18 Aaa/AAA AAA 0.56 0.55 Total Market Value + Accrued 955,552.70 41 TRANSACTIONS 42 TRANSACTION LEDGER Danville Short Term Treasury Pool | Account #21|07/01/2024 Through 09/30/2024| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss ACQUISITIONS Purchase 07/15/2024 023135BC9 1,000,000.00 AMAZON.COM INC 3.15 08/22/2027 95.492 4.73%(12,512.50)(967,432.50)0.00 Purchase 07/26/2024 09290DAH4 690,000.00 BLACKROCK FUNDING INC 4.6 07/26/2027 99.997 4.60%0.00 (689,979.30)0.00 Purchase 08/20/2024 92826CAH5 1,000,000.00 VISA INC 2.75 09/15/2027 96.036 4.14%(11,840.28)(972,200.28)0.00 Purchase 09/06/2024 91282CES6 1,200,000.00 UNITED STATES TREASURY 2.75 05/31/2029 96.332 3.60%(8,836.07)(1,164,820.45)0.00 Purchase 09/18/2024 3133ERSP7 1,500,000.00 FEDERAL FARM CREDIT BANKS FUNDING CORP 3.5 09/10/2029 3.49%(1,166.67)(1,502,111.67)0.00 Purchase 09/30/2024 9128283W8 1,500,000.00 UNITED STATES TREASURY 2.75 02/15/2028 97.609 3.51%(5,156.25)(1,469,296.88)0.00 Total Purchase 6,890,000.00 (39,511.77)(6,765,841.08)0.00 TOTAL ACQUISITIONS 6,890,000.00 (39,511.77)(6,765,841.08)0.00 DISPOSITIONS Maturity 07/15/2024 91282CCL3 UNITED STATES TREASURY 0.375 07/15/2024 0.38%0.00 1,500,000.00 0.00 Maturity 08/09/2024 69371RR40 (385,000.00) PACCAR FINANCIAL CORP 0.5 08/09/2024 0.50%385,000.00 0.00 385,000.00 0.00 Maturity 08/31/2024 912828YE4 UNITED STATES TREASURY 1.25 08/31/2024 1.25%0.00 1,000,000.00 0.00 43 TRANSACTION LEDGER Danville Short Term Treasury Pool | Account #21|07/01/2024 Through 09/30/2024| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss Maturity 09/15/2024 91282CCX7 UNITED STATES TREASURY 0.375 09/15/2024 0.38%0.00 1,400,000.00 0.00 Maturity 09/23/2024 4581X0DZ8 INTER-AMERICAN DEVELOPMENT BANK 0.5 09/23/2024 0.50%0.00 1,250,000.00 0.00 Total Maturity 0.00 5,535,000.00 0.00 TOTAL DISPOSITIONS 0.00 5,535,000.00 0.00 44 TRANSACTION LEDGER Danville NERIAD Improvement Fund (89-1 90A) | Account #24|07/01/2024 Through 09/30/2024| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss ACQUISITIONS Purchase 09/06/2024 912797MH7 250,000.00 UNITED STATES TREASURY 09/04/2025 95.950 4.20%0.00 (239,875.83)0.00 Total Purchase 250,000.00 0.00 (239,875.83)0.00 TOTAL ACQUISITIONS 250,000.00 0.00 (239,875.83)0.00 DISPOSITIONS Maturity 09/05/2024 912797GL5 (250,000.00) UNITED STATES TREASURY 09/05/2024 0.00%250,000.00 0.00 250,000.00 0.00 Total Maturity (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 45 IMPORTANT DISCLOSURES Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 2024 Chandler Asset Management, Inc, An Independent Registered Investment Adviser. Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index. Source ICE Data Indices, LLC (“ICE”), used with permission. 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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. 46 BENCHMARK DISCLOSURES Danville Short Term Treasury Pool | Account #21 | As of September 30, 2024 Benchmark Disclosure 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 have at least 18 months to final maturity at the time of issuance. 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 $250 million for all other securities. 47 Supplement to Quarterly Investment Report Town Managed Cash Account Average Average Maturity Yield Cost Town Funds 0 4.579%18,402,235 Trust Fund 0 4.579%1,886,575 . Community Development Agency DS/Successor Agency 0 4.579%47,189 NERIAD 0 4.579%168,477 Total LAIF Funds Managed by the Town 20,504,477$ LAIF Funds Managed by the Town (Local Agency Investment Fund) August 2024 8.1