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HomeMy WebLinkAbout011425-09.1INVESTMENT REPORT Danville | As of December 31, 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 continued growth fueled by a resilient consumer. Inflationary trends have subsided,but some components remain sticky, and 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 economic outlook,we expect a slower cadence of rate cuts by the Fed and a gradually steepening yield curve. As broadly anticipated, the Federal Open Market Committee (FOMC) reduced the Fed Funds Rate by 25 basis points to the range of 4.25- 4.50%at the December meeting. Although the cut was widely anticipated, market participants viewed the trajectory of rates in the SEP as ‘hawkish.’Chair Jerome Powell reiterated previous statements indicating the economy is in a good place and that monetary policy is well positioned. The Fed released the quarterly Summary of Economic Projections (SEP), which now forecasts a higher central tendency of core inflation and a higher longer run Fed Funds forecast.In the Chandler team’s view, the updated SEP reflects the continued resiliency of the US economy and the corresponding risk of inflation taking longer to reach the FOMC’s two percent objective in 2025. The US Treasury yield curve shifted lower in November. The 2-year Treasury yield edged down 2 basis points to 4.15%, the 5-year Treasury dropped 11 basis points to 4.05%, and the 10-year Treasury yield fell 12 basis points to 4.17%. The spread between the 2-year and 10-year Treasury yield points on the curve narrowed to +2 basis points at November month-end versus +11 basis points at October month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -36 basis points. The inversion between 3-month and 10- year Treasuries widened to -32 basis points in November from -26 basis points in October. 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 227,000 jobs in November, rising from the upwardly revised 36,000 created in October. The Gulf and East Coast dockworkers strike along with Boeing’s union machinists strike were both resolved which contributed to the recovery in November. However, the temporary distortions in the wake of Hurricane Helene and Hurricane Milton may continue to affect labor market data in the near-term. The three-month moving average and six-month moving average payrolls improved to 173,000 and 143,000 respectively. The unemployment rate ticked up to 4.2%in November, and the labor participation rate fell to 62.5%, 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 edged up to 7.8%. Average hourly earnings was unchanged at 4.0% year-over-year in November. 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) rose to 7.74 new job openings in October, which represented an increase from the downwardly revised 7.37 million job openings in September. Job openings indicate a ratio of 1.1 jobs for each unemployed individual, representing a relatively balanced labor market. 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 November, the Consumer Price Index (CPI) rose 0.3% month-over-month and 2.7% year-over-year, rising from 2.6%in October as expected. The Core CPI, which excludes volatile food and energy components, rose 0.3% month-over-month and 3.3% year-over-year, also meeting consensus forecasts. The Personal Consumption Expenditures (PCE) Index rose 0.1% fromthe previous month and 2.4% year-over- year in November versus a 2.3% increase in October. The Core PCE deflator (the Fed’s preferred gauge) increased 0.1% month-over- month, below recent small month-over-month rises and 2.8% over the past year. Core prices are exhibiting what Fed Chair Powell describes as “sideways” movement. Although inflation has moderated, price increases remain above the Fed’s 2% target. 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 marginally above expectations at 0.7%in November versus 0.5%in October driven by strong motor vehicle sales.On a year-over-year basis, Retail Sales grew 3.8%in November versus 2.9%in October. Retail Sales Control Group, which are used to calculate gross domestic product, was also solid at 0.4% for the month. The Conference Board’s Consumer Confidence Index declined to 104.7 in December from an upwardly revised 112.8 in November. Consumers' assessment about future business conditions and outcomes were substantially less optimistic and there was increased pessimism about future employment prospects. While the consumer has been resilient, low savings rates, growing credit card debt, higher delinquencies, and a moderating labor market pose potential risks to future spending. 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) increased 0.3%in November reversing its -0.4% decline in October due to a rebound in building permits, continued support from equities, improvement in average hours worked in manufacturing, and fewer initial unemployment claims. The LEI decreased year-over-year by -3.5%. According to the Conference Board, the rise in LEI is a positive sign for future activity in the US and is consistent with an expectation for moderate growth at the end of 2024 and into early 2025.The Chicago Fed National Activity Index (CFNAI) improved to -0.12 in November from-0.50 in October. The three-month moving average fell to -0.31 in November from -0.27 in October, 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 in November declined 1.8%to 1.29 million units from 1.31 million units in October. Total starts are down 14.6% compared to November 2023.Starts remain soft as mortgage rates remain relatively high. The supply of existing homes is becoming more abundant after the period of scarcity as homeowners held onto their low mortgage rates. The Freddie Mac average rate for a 30-year fixed rate mortgage increased to 6.9% from 6.8%in December. According to the Case-Shiller 20-City Home Price Index, housing prices rose 4.2% year-over-year in October, decelerating from 4.6% reported in the previous month. With more inventory entering the market the trend is gradually improving, however 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 rose more than forecast to 49.3 in December from 48.4 in November. While the index has posted contractionary readings for the past nine months, New Orders and Prices indices continued in expansion territory and the Production Index returned to expansion this month. The Backlog of Orders Index and Employment Index remained in contraction. The ISM Services Index dropped to 52.1 in November from 56.0 in October while marking the fifth straight month of expansion. Election ramifications and tariffs were key contributors to the cautionary outlooks reflected in the survey. 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 12/23 3/24 6/24 9/24 2.3% 1.3% 1.9% 2.5% 0.2% 0.6% 1.5% 0.2% 0.1% -0.6% -0.9% -0.4% 0.0% 0.0% 0.3% 0.6% 0.6% 0.3% 0.3% 0.3% 3.2% 1.6% 3.0% 3.1% State and Local (Consumption and Gross Investment) Personal Consumption Expenditures Gross Private Domestic Investment Net Exports and Imports Federal Government Expenditures Total -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, third quarter GDP increased at an annualized rate of 3.1% compared to 2.8% from the second estimate. Growth continues to be powered by personal consumption expenditures. Government consumption expenditures and nonresidential fixed investment also had positive contributions, with negative offsets by net exports, residential investment, and change in private inventories. The consensus projection calls for 2.4% growth in the fourth quarter and 2.7% 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 As broadly anticipated, the Federal Open Market Committee (FOMC) reduced the Fed Funds Rate by 25 basis points to the range of 4.25- 4.50% at the December meeting. There was one dissenting vote by Cleveland Fed President Beth Hammack who would have preferred no change in rates. Although a reduction in rates was widely anticipated, market participants viewed the trajectory of rates in the SEP as ‘hawkish.’ Chair Jerome Powell reiterated previous statements that monetary policy is “well positioned” and the outlook remains roughly balanced between the dual mandate of maximum employment and price stability. Economic activity is expanding at a solid pace, labor market conditions have “generally eased”, and the unemployment rate “remains low.” The Fed released the quarterly Summary of Economic Projections (SEP) which now forecasts a higher, longer run median Fed Funds rate expectation among Fed Governors at 2.8 – 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 $1.9T to approximately $7.0T. 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 Dec-24 Sep-24 Dec-23 Yi e l d ( % ) At the end of November, the 2-year Treasury yield was 53 basis points lower, and the 10-Year Treasury yield was 16 basis points lower, year-over-year. The spread between the 2-year and 10-year Treasury yield points on the curve narrowed to +2 basis points at November month-end versus +11 basis points at October 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 widened to -32 basis points in November from -26 basis points in October. 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 December 31, 2024 Rules Name Limit Actual Compliance Status Notes AGENCY MORTGAGE SECURITIES (CMOS) Max % (MV; ABS, CMO, & MBS)15.0 11.4 Compliant Max % Issuer (MV)30.0 7.9 Compliant Max Maturity (Years)5.0 3.7 Compliant Min Rating (AAA by 1)0.0 0.0 Compliant ASSET-BACKED SECURITIES (ABS) Max % (MV; ABS, CMO & MBS)15.0 11.4 Compliant Max % Issuer (MV)5.0 1.0 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 Max % (MV)20.0 16.7 Compliant Max % Issuer (MV)5.0 1.4 Compliant 16 STATEMENT OF COMPLIANCE Danville Short Term Treasury Pool | Account #21 | As of December 31, 2024 Rules Name Limit Actual Compliance Status Notes 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 21.8 Compliant Max % Issuer (MV)30.0 14.1 Compliant Max Callables (MV)20.0 0.0 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 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 17 STATEMENT OF COMPLIANCE Danville Short Term Treasury Pool | Account #21 | As of December 31, 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 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 3.5 Compliant Max % Issuer (MV)5.0 1.5 Compliant Max Maturity (Years)5 3 Compliant Min Rating (AA- by 1)0.0 0.0 Compliant U.S. TREASURIES Max % (MV)100.0 46.4 Compliant Max % Issuer (MV)100.0 46.4 Compliant Max Maturity (Years)5 4 Compliant 18 PORTFOLIO CHARACTERISTICS Danville Short Term Treasury Pool | Account #21 | As of December 31, 2024 Benchmark*12/31/2024 Portfolio 9/30/2024 Portfolio Average Maturity (yrs)1.84 2.08 2.05 Average Modified Duration 1.75 1.86 1.83 Average Purchase Yield 3.74%3.50% Average Market Yield 4.25%4.38%3.97% Average Quality**AA+AA+AA+ Total Market Value 96,889,811 96,993,874 *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. 19 SECTOR DISTRIBUTION Danville Short Term Treasury Pool | Account #21 | As of December 31, 2024 Sector as a Percentage of Market Value Sector 12/31/2024 09/30/2024 US Treasury 46.43%43.40% Agency 21.83%24.07% Corporate 16.66%16.77% Agency CMBS 7.92%7.02% Supras 3.51%4.61% ABS 3.49%3.96% Money Mkt Fd 0.15%0.16% 20 ISSUERS Danville Short Term Treasury Pool | Account #21 | As of December 31, 2024 Issuer Investment Type % Portfolio Government of The United States US Treasury 46.43% Farm Credit System Agency 14.07% FHLMC Agency CMBS 7.92% Federal Home Loan Banks Agency 6.75% International Bank for Recon and Dev Supras 1.51% State Street Corporation Corporate 1.39% Apple Inc.Corporate 1.28% Bank of America Corporation Corporate 1.05% Caterpillar Inc.Corporate 1.05% Cisco Systems, Inc.Corporate 1.05% Chase Issuance Trust ABS 1.05% Deere & Company Corporate 1.04% Inter-American Development Bank Supras 1.04% Mastercard Incorporated Corporate 1.04% Microsoft Corporation Corporate 1.03% FNMA Agency 1.01% Amazon.com, Inc.Corporate 1.00% Honeywell International Inc.Corporate 1.00% Visa Inc.Corporate 0.99% Toyota Motor Corporation Corporate 0.99% International Finance Corporation Supras 0.96% BMW Vehicle Owner Trust ABS 0.73% Walmart Inc.Corporate 0.73% BlackRock, Inc.Corporate 0.72% PACCAR Inc Corporate 0.54% 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% PepsiCo, Inc.Corporate 0.38% 21 ISSUERS Danville Short Term Treasury Pool | Account #21 | As of December 31, 2024 Issuer Investment Type % Portfolio Toyota Auto Receivables Owner Trust ABS 0.31% GM Financial Automobile Leasing Trus ABS 0.22% Hyundai Auto Receivables Trust ABS 0.20% Honda Auto Receivables Owner Trust ABS 0.18% GM Financial Securitized Term ABS 0.17% Allspring Group Holdings LLC Money Mkt Fd 0.15% John Deere Owner Trust ABS 0.14% Cash Cash 0.00% TOTAL 100.00% 22 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+ Portfolio 8.5%7.3%12.6%25.6%29.0%12.8%4.2%0.0%0.0% ICE BofA 1-3 Year US Treasury Index 0.0%0.0%3.8%59.7%36.5%0.0%0.0%0.0%0.0% DURATION DISTRIBUTION Danville Short Term Treasury Pool | Account #21 | As of December 31, 2024 Portfolio Compared to the Benchmark 23 QUALITY DISTRIBUTION Rating 12/31/2024 09/30/2024 AAA 9.2%10.6% AA 81.2%79.1% A 9.5%10.0% NR 0.2%0.3% Rating 12/31/2024 09/30/2024 AAA 83.6%83.3% AA 7.3%5.9% A 7.1%8.5% NR 2.0%2.2% Rating 12/31/2024 09/30/2024 AAA 7.9%7.3% AA 75.4%74.8% A 4.1%4.1% NR 12.5%13.8% Danville Short Term Treasury Pool | Account #21 | As of December 31, 2024 S&P Rating Moody’s Rating Fitch Rating 24 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception TOTAL RATE OF RETURN Danville ST Treasury Pool (0.11%)4.28%4.47%1.87%1.65%1.62%3.37% Benchmark (0.06%)4.08%4.16%1.49%1.40%1.39%3.11% REALIZED RATE OF RETURN Danville ST Treasury Pool 0.89%3.20%2.57%2.16%2.00%1.71%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 December 31, 2024 Total and Realized Rate of Return : Inception | 04/01/1995 -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 3 months 12 months 2 years 3 years 5 years 10 years Since Inception Danville Short Term Treasury Pool Benchmark Realized Rate of Return 25 HISTORICAL AVERAGE PURCHASE YIELD Danville Short Term Treasury Pool | Account #21 | As of December 31, 2024 Purchase Yield as of 12/31/24 = 3.74% 26 Growth of $1 Million GROWTH OVER TIME Danville Short Term Treasury Pool |Account #21 |As of December 31,2024 As of 12/31/2024 Dollar Value Return Danville Total Return $2,682,692 3.37% Danville Realized Return $2,657,222 3.34% LAIF $2,167,349 2.63% Historical Return of $1 Million Invested on March 31, 1995 27 PORTFOLIO CHARACTERISTICS Danville NERIAD Improvement Fund (89-1 90A) | Account #24 | As of December 31, 2024 Benchmark*12/31/2024 Portfolio 9/30/2024 Portfolio Average Maturity (yrs)0.16 0.58 0.56 Average Modified Duration 0.15 0.56 0.55 Average Purchase Yield 4.65%4.91% Average Market Yield 4.26%4.24%4.28% Average Quality**AA+AAA AAA Total Market Value 965,440 955,553 *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. 28 ISSUERS Danville NERIAD Improvement Fund (89-1 90A) | Account #24 | As of December 31, 2024 Issuer Investment Type % Portfolio Government of The United States US Treasury 97.02% Allspring Group Holdings LLC Money Mkt Fd 2.96% Cash Cash 0.02% TOTAL 100.00% 29 PORTFOLIO HOLDINGS 30 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of December 31, 2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration ABS 43815GAC3 HAROT 2021-4 A3 0.88 01/21/2026 40,786.86 11/16/2021 0.89% 40,778.26 40,784.98 99.22 4.64% 40,469.61 9.97 0.04% (315.36) Aaa/NA AAA 1.06 0.21 47789QAC4 JDOT 2021-B A3 0.52 03/16/2026 39,286.86 07/13/2021 0.53% 39,283.35 39,286.10 99.50 4.47% 39,091.17 9.08 0.04% (194.92) Aaa/NA AAA 1.21 0.13 89238JAC9 TAOT 2021-D A3 0.71 04/15/2026 41,338.76 11/09/2021 0.71% 41,337.88 41,338.55 99.27 4.64% 41,037.55 13.04 0.04% (301.00) NA/AAA AAA 1.29 0.18 43815BAC4 HAROT 2022-1 A3 1.88 05/15/2026 134,051.83 02/15/2022 1.89% 134,031.67 134,046.02 99.14 4.60% 132,900.84 112.01 0.14% (1,145.19) Aaa/AAA NA 1.37 0.31 05602RAD3 BMWOT 2022-A A3 3.21 08/25/2026 98,326.14 05/10/2022 3.23% 98,321.02 98,324.36 99.55 4.54% 97,878.90 52.60 0.10% (445.46) Aaa/AAA NA 1.65 0.35 47787JAC2 JDOT 2022 A3 0.36 09/15/2026 96,611.54 03/10/2022 2.34% 96,590.17 96,604.15 99.17 4.82% 95,806.92 99.62 0.10% (797.23) Aaa/NA AAA 1.71 0.33 448977AD0 HART 2022-A A3 2.22 10/15/2026 194,595.51 03/09/2022 2.23% 194,588.02 194,592.95 99.25 4.77% 193,138.79 192.00 0.20% (1,454.16) NA/AAA AAA 1.79 0.29 380146AC4 GMCAR 2022-1 A3 1.26 11/16/2026 45,757.28 01/11/2022 1.27% 45,753.30 45,755.97 99.09 4.61% 45,343.05 24.02 0.05% (412.91) NA/AAA AAA 1.88 0.27 379929AD4 GMALT 2023-3 A3 5.38 11/20/2026 210,000.00 08/08/2023 5.38% 209,974.82 209,985.47 100.52 4.61% 211,099.85 345.22 0.22% 1,114.39 NA/AAA AAA 1.89 0.63 362585AC5 GMCAR 2022-2 A3 3.1 02/16/2027 119,741.02 04/05/2022 3.13% 119,716.00 119,731.18 99.35 4.63% 118,962.95 154.67 0.12% (768.24) Aaa/AAA NA 2.13 0.43 05592XAD2 BMWOT 2023-A A3 5.47 02/25/2028 175,000.00 07/11/2023 5.47% 174,968.99 174,978.81 100.87 4.55% 176,515.85 159.54 0.18% 1,537.04 NA/AAA AAA 3.15 0.88 89239FAD4 TAOT 2023-D A3 5.54 08/15/2028 255,000.00 11/07/2023 6.30% 254,972.51 254,979.07 101.47 4.57% 258,746.72 627.87 0.27% 3,767.65 NA/AAA AAA 3.62 1.41 161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 995,000.00 09/07/2023 5.17% 994,724.19 994,795.75 101.06 4.56% 1,005,546.01 2,281.87 1.05% 10,750.26 NR/AAA AAA 3.71 1.59 096919AD7 BMWOT 2024-A A3 5.18 02/26/2029 420,000.00 06/04/2024 5.24% 419,936.20 419,943.76 101.18 4.48% 424,955.33 362.60 0.44% 5,011.57 Aaa/AAA NA 4.16 1.55 05522RDJ4 BACCT 2024-1 A 4.93 05/15/2029 475,000.00 06/06/2024 4.93% 474,973.35 474,976.43 100.97 4.54% 479,590.69 1,040.78 0.50% 4,614.25 Aaa/AAA NA 4.37 2.19 Total ABS 3,340,495.81 4.54% 3,339,949.74 3,340,123.53 100.62 4.57% 3,361,084.22 5,484.88 3.49% 20,960.69 Aaa/AAA AAA 3.22 1.25 31 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of December 31, 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 AGENCY 3133ENKS8 FEDERAL FARM CREDIT BANKS FUNDING CORP 1.125 01/06/2025 595,000.00 01/06/2022 1.20% 593,661.25 594,993.86 99.96 4.34% 594,786.29 3,253.91 0.62% (207.58) Aaa/AA+ AA+ 0.02 0.01 3133ENPG9 FEDERAL FARM CREDIT BANKS FUNDING CORP 1.75 02/14/2025 1,500,000.00 -- 1.83% 1,496,422.50 1,499,855.19 99.67 4.54% 1,495,098.29 9,989.58 1.55% (4,756.90) Aaa/AA+ AA+ 0.12 0.12 3133ENPY0 FEDERAL FARM CREDIT BANKS FUNDING CORP 1.75 02/25/2025 750,000.00 03/14/2022 2.05% 743,440.50 749,665.33 99.60 4.46% 746,997.30 4,593.75 0.78% (2,668.03) Aaa/AA+ AA+ 0.15 0.15 3133ENWH9 FEDERAL FARM CREDIT BANKS FUNDING CORP 2.9 05/09/2025 1,000,000.00 05/03/2022 2.97% 998,050.00 999,772.26 99.48 4.37% 994,841.09 4,188.89 1.03% (4,931.17) Aaa/AA+ AA+ 0.35 0.35 3135G05X7 FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.375 08/25/2025 1,000,000.00 12/09/2021 1.17% 971,060.00 994,955.81 97.50 4.34% 974,959.62 1,312.50 1.01% (19,996.19) Aaa/AA+ AA+ 0.65 0.63 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 1,998,828.51 100.14 4.28% 2,002,774.38 1,944.44 2.08% 3,945.87 Aaa/AA+ AA+ 1.48 1.41 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 1,498,142.79 100.39 4.24% 1,505,882.54 25,687.50 1.57% 7,739.74 Aaa/AA+ AA+ 1.62 1.52 3130AXU63 FEDERAL HOME LOAN BANKS 4.625 11/17/2026 1,000,000.00 11/30/2023 4.53% 1,002,530.00 1,001,601.71 100.64 4.26% 1,006,414.48 5,652.78 1.05% 4,812.77 Aaa/AA+ AA+ 1.88 1.77 3130B1EF0 FEDERAL HOME LOAN BANKS 4.625 06/11/2027 1,000,000.00 06/26/2024 4.57% 1,001,530.00 1,001,263.42 100.80 4.28% 1,007,964.26 2,569.44 1.05% 6,700.84 Aaa/AA+ AA+ 2.44 2.28 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 1,503,249.82 100.42 4.33% 1,506,296.78 16,312.50 1.57% 3,046.95 Aaa/AA+ AA+ 2.76 2.54 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 1,745,342.82 100.81 4.32% 1,764,131.13 10,342.01 1.83% 18,788.31 Aaa/AA+ AA+ 2.87 2.65 3130ATUS4 FEDERAL HOME LOAN BANKS 4.25 12/10/2027 1,500,000.00 05/15/2023 3.66% 1,536,930.00 1,523,742.29 99.86 4.30% 1,497,906.21 3,718.75 1.56% (25,836.08) Aaa/AA+ AA+ 2.94 2.73 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 1,505,252.64 98.47 4.38% 1,476,979.91 10,656.25 1.54% (28,272.73) Aaa/AA+ AA+ 3.32 3.05 3130AWC24 FEDERAL HOME LOAN BANKS 4.0 06/09/2028 1,500,000.00 07/06/2023 4.49% 1,467,705.00 1,477,433.06 98.70 4.41% 1,480,468.49 3,666.67 1.54% 3,035.43 Aaa/AA+ AA+ 3.44 3.17 3130AVBD3 FEDERAL HOME LOAN BANKS 4.5 03/09/2029 1,500,000.00 04/26/2024 4.74% 1,484,775.00 1,486,886.25 100.01 4.50% 1,500,100.50 21,000.00 1.56% 13,214.25 Aaa/AA+ AA+ 4.19 3.73 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 1,500,890.42 96.19 4.41% 1,442,905.95 16,187.50 1.50% (57,984.47) Aaa/AA+ AA+ 4.69 4.22 32 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of December 31, 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 21,047,131.75 99.56 20,998,507.19 21.83%Aaa/AA+2.27 Total Agency 21,095,000.00 3.75%21,081,876.18 4.36%141,076.48 (83,368.99)AA+2.09 AGENCY CMBS 3137BVZ82 FHMS K-063 A2 3.43 01/25/2027 1,000,000.00 06/06/2023 4.47% 965,625.00 980,726.77 97.83 4.53% 978,347.60 2,858.33 1.02% (2,379.17) Aaa/AA+ AAA 2.07 1.82 3137F2LJ3 FHMS K-066 A2 3.117 06/25/2027 1,000,000.00 05/18/2023 4.23% 958,984.38 975,418.53 96.71 4.56% 967,102.10 2,597.50 1.01% (8,316.43) Aaa/AA+ AAA 2.48 2.19 3137FBBX3 FHMS K-068 A2 3.244 08/25/2027 1,000,000.00 05/12/2023 3.98% 970,820.31 982,116.29 96.67 4.57% 966,652.00 2,703.33 1.00% (15,464.29) Aaa/AA+ AA+ 2.65 2.42 3137FBU79 FHMS K-069 A2 3.187 09/25/2027 1,130,308.44 12/27/2023 4.27% 1,088,230.94 1,099,800.69 96.46 4.57% 1,090,281.05 3,001.91 1.13% (9,519.63) Aaa/AAA AA+ 2.73 2.48 3137FETN0 FHMS K-073 A2 3.35 01/25/2028 720,000.00 05/24/2023 4.27% 691,987.50 701,709.19 96.44 4.60% 694,396.58 2,010.00 0.72% (7,312.61) Aaa/AA+ AAA 3.07 2.75 3137F4D41 FHMS K-074 A2 3.6 01/25/2028 1,000,000.00 12/18/2024 4.45% 974,921.88 975,126.32 97.08 4.61% 970,816.60 3,000.00 1.01% (4,309.72) Aaa/AA+ AAA 3.07 2.78 3137FJEH8 FHMS K-081 A2 3.9 08/25/2028 1,000,000.00 09/05/2023 4.85% 957,968.75 969,269.49 97.41 4.65% 974,082.70 3,250.00 1.01% 4,813.21 Aaa/AA+ AAA 3.65 3.30 3137FJKE8 FHMS K-082 A2 3.92 09/25/2028 1,000,000.00 10/30/2023 5.31% 940,742.19 955,044.64 97.44 4.65% 974,424.10 3,266.67 1.01% 19,379.46 Aaa/AA+ AAA 3.74 3.33 7,549,280.95 97.02 7,616,102.74 7.92%Aaa/AA+2.92 Total Agency CMBS 7,850,308.44 4.48%7,639,211.92 4.59%22,687.74 (23,109.18)AAA 2.63 CASH CCYUSD Receivable 1,355.65 -- 0.00% 1,355.65 1,355.65 1.00 0.00% 1,355.65 0.00 0.00% 0.00 Aaa/AAA AAA 0.00 0.00 1,355.65 1.00 1,355.65 0.00%Aaa/AAA 0.00 Total Cash 1,355.65 0.00%1,355.65 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% 999,010.00 999,945.00 99.56 4.58% 995,603.84 6,555.56 1.04% (4,341.16) Aa3/A+ NA 0.17 0.17 33 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of December 31, 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 037833DT4 APPLE INC 1.125 05/11/2025 500,000.00 02/25/2022 2.03% 485,870.00 498,425.96 98.69 4.83% 493,465.50 781.25 0.51% (4,960.46) Aaa/AA+ NA 0.36 0.35 194162AM5 COLGATE-PALMOLIVE CO 3.1 08/15/2025 470,000.00 08/01/2022 3.13% 469,567.60 469,911.32 99.17 4.47% 466,103.42 5,504.22 0.48% (3,807.90) Aa3/A+ NA 0.62 0.60 931142EW9 WALMART INC 3.9 09/09/2025 700,000.00 09/26/2022 4.64% 685,776.00 696,685.03 99.65 4.42% 697,542.17 8,493.33 0.73% 857.14 Aa2/AA AA 0.69 0.66 594918BJ2 MICROSOFT CORP 3.125 11/03/2025 1,000,000.00 01/20/2023 4.28% 970,060.00 990,964.85 98.96 4.41% 989,556.33 5,034.72 1.03% (1,408.52) Aaa/AAA WR 0.84 0.81 857477BR3 STATE STREET CORP 1.746 02/06/2026 265,000.00 02/02/2022 1.75% 265,000.00 265,000.00 99.61 5.82% 263,976.84 1,863.61 0.27% (1,023.17) Aa3/A AA- 1.10 0.09 037833BY5 APPLE INC 3.25 02/23/2026 750,000.00 02/01/2023 4.27% 728,265.00 741,859.11 98.79 4.34% 740,953.54 8,666.67 0.77% (905.58) Aaa/AA+ NA 1.15 1.09 89236TJK2 TOYOTA MOTOR CREDIT CORP 1.125 06/18/2026 1,000,000.00 02/08/2024 4.68% 921,800.00 951,364.53 95.08 4.65% 950,813.00 406.25 0.99% (551.53) A1/A+ A+ 1.46 1.42 69371RS56 PACCAR FINANCIAL CORP 5.05 08/10/2026 515,000.00 08/03/2023 5.07% 514,742.50 514,862.32 100.92 4.45% 519,715.40 10,186.27 0.54% 4,853.07 A1/A+ NA 1.61 1.50 06428CAA2 BANK OF AMERICA NA 5.526 08/18/2026 1,000,000.00 08/24/2023 5.48% 1,001,360.00 1,000,725.76 101.32 4.67% 1,013,198.02 20,415.50 1.05% 12,472.26 Aa1/A+ AA 1.63 1.44 61690U7W4 MORGAN STANLEY BANK NA 5.882 10/30/2026 440,000.00 10/30/2023 5.88% 440,000.00 440,000.00 102.10 4.67% 449,239.85 4,385.36 0.47% 9,239.85 Aa3/A+ AA- 1.83 1.63 438516BL9 HONEYWELL INTERNATIONAL INC 2.5 11/01/2026 1,000,000.00 01/11/2023 4.42% 933,280.00 967,841.73 96.52 4.50% 965,218.79 4,166.67 1.00% (2,622.94) A2/A A 1.84 1.75 713448FW3 PEPSICO INC 5.125 11/10/2026 360,000.00 11/08/2023 5.13% 359,902.80 359,939.87 101.25 4.41% 364,487.69 2,613.75 0.38% 4,547.82 A1/A+ NA 1.86 1.67 48125LRU8 JPMORGAN CHASE BANK NA 5.11 12/08/2026 405,000.00 12/05/2023 5.11% 405,000.00 405,000.00 101.05 4.53% 409,265.95 1,322.21 0.43% 4,265.95 Aa2/AA- AA 1.94 1.74 24422EXF1 JOHN DEERE CAPITAL CORP 4.5 01/08/2027 1,000,000.00 01/10/2024 4.53% 999,220.00 999,473.57 100.14 4.43% 1,001,403.92 21,625.00 1.04% 1,930.35 A1/A A+ 2.02 1.87 17275RBQ4 CISCO SYSTEMS INC 4.8 02/26/2027 1,000,000.00 -- 4.81% 999,620.00 999,726.53 100.73 4.44% 1,007,300.03 16,666.67 1.05% 7,573.50 A1/AA- NA 2.16 1.92 857477CL5 STATE STREET CORP 4.993 03/18/2027 1,065,000.00 03/13/2024 4.99% 1,065,000.00 1,065,000.00 100.83 4.59% 1,073,863.88 15,214.09 1.12% 8,863.88 Aa3/A AA- 2.21 1.97 14913UAL4 CATERPILLAR FINANCIAL SERVICES CORP 5.0 05/14/2027 1,000,000.00 05/15/2024 4.89% 1,002,930.00 1,002,315.56 101.02 4.54% 1,010,182.21 6,527.78 1.05% 7,866.65 A2/A A+ 2.37 2.20 34 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of December 31, 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 09290DAH4 BLACKROCK INC 4.6 07/26/2027 690,000.00 07/17/2024 4.60% 689,979.30 689,982.31 100.23 4.50% 691,570.03 13,665.83 0.72% 1,587.73 Aa3/AA- NA 2.57 2.28 023135BC9 AMAZON.COM INC 3.15 08/22/2027 1,000,000.00 07/10/2024 4.73% 954,920.00 961,683.99 96.55 4.55% 965,519.16 11,287.50 1.00% 3,835.17 A1/AA AA- 2.64 2.47 92826CAH5 VISA INC 2.75 09/15/2027 1,000,000.00 08/19/2024 4.14% 960,360.00 965,098.41 95.70 4.45% 957,017.16 8,097.22 0.99% (8,081.25) Aa3/AA- NA 2.71 2.54 Total Corporate 16,160,000.00 4.40% 15,851,663.20 15,985,805.85 99.21 4.54% 16,025,996.71 173,479.46 16.66% 40,190.86 Aa3/A+ AA- 1.68 1.53 MONEY MARKET FUND VP4530003 ALLSPRING:TRS+ MM I 144,650.59 -- 4.33% 144,650.59 144,650.59 1.00 4.33% 144,650.59 0.00 0.15% 0.00 Aaa/AAAm NA 0.00 0.00 Total Money Market Fund 144,650.59 4.33% 144,650.59 144,650.59 1.00 4.33% 144,650.59 0.00 0.15% 0.00 Aaa/AAAm NA 0.00 0.00 SUPRANATIONAL 45950KDF4 INTERNATIONAL FINANCE CORP 4.375 01/15/2027 925,000.00 11/29/2023 4.49% 921,984.50 923,025.06 99.94 4.41% 924,436.94 18,664.86 0.96% 1,411.88 Aaa/AAA NA 2.04 1.89 4581X0EM6 INTER-AMERICAN DEVELOPMENT BANK 4.375 02/01/2027 1,000,000.00 01/30/2024 4.23% 1,004,020.00 1,002,791.26 99.96 4.40% 999,569.33 18,229.17 1.04% (3,221.93) Aaa/AAA NA 2.09 1.93 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 1,464,962.65 97.14 4.38% 1,457,133.60 24,645.83 1.51% (7,829.05) Aaa/AAA NA 3.53 3.22 Total Supranational 3,425,000.00 4.30% 3,382,969.50 3,390,778.97 98.74 4.39% 3,381,139.87 61,539.86 3.51% (9,639.10) Aaa/AAA NA 2.70 2.48 US TREASURY 912828Z52 UNITED STATES TREASURY 1.375 01/31/2025 1,500,000.00 02/24/2021 0.40% 1,557,011.72 1,501,191.05 99.76 4.35% 1,496,466.90 8,631.11 1.56% (4,724.15) Aaa/AA+ AA+ 0.08 0.08 912828ZC7 UNITED STATES TREASURY 1.125 02/28/2025 1,000,000.00 02/03/2022 1.43% 990,820.31 999,524.62 99.49 4.36% 994,912.90 3,822.51 1.03% (4,611.72) Aaa/AA+ AA+ 0.16 0.16 35 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of December 31, 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 912828ZF0 UNITED STATES TREASURY 0.5 03/31/2025 1,350,000.00 -- 0.66% 1,342,150.39 1,349,486.52 99.11 4.23% 1,337,924.59 1,724.59 1.39% (11,561.94) Aaa/AA+ AA+ 0.25 0.24 912828ZL7 UNITED STATES TREASURY 0.375 04/30/2025 2,000,000.00 -- 1.52% 1,934,296.88 1,992,817.06 98.73 4.32% 1,974,611.42 1,284.53 2.05% (18,205.64) Aaa/AA+ AA+ 0.33 0.32 912828ZT0 UNITED STATES TREASURY 0.25 05/31/2025 1,500,000.00 06/11/2021 0.53% 1,483,359.38 1,498,274.99 98.38 4.28% 1,475,661.24 329.67 1.53% (22,613.75) Aaa/AA+ AA+ 0.41 0.40 912828ZW3 UNITED STATES TREASURY 0.25 06/30/2025 1,500,000.00 07/29/2021 0.55% 1,482,246.09 1,497,766.80 98.09 4.20% 1,471,303.91 10.36 1.53% (26,462.90) Aaa/AA+ AA+ 0.50 0.48 91282CAB7 UNITED STATES TREASURY 0.25 07/31/2025 1,350,000.00 12/02/2021 4.30% 1,310,871.09 1,343,820.21 97.73 4.27% 1,319,294.80 1,412.36 1.37% (24,525.41) Aaa/AA+ AA+ 0.58 0.57 912828K74 UNITED STATES TREASURY 2.0 08/15/2025 1,500,000.00 04/21/2022 2.94% 1,454,882.81 1,491,580.11 98.61 4.29% 1,479,175.10 11,331.52 1.54% (12,405.02) Aaa/AA+ AA+ 0.62 0.60 9128285C0 UNITED STATES TREASURY 3.0 09/30/2025 1,500,000.00 04/21/2022 2.96% 1,502,109.38 1,500,456.44 99.09 4.25% 1,486,339.04 11,497.25 1.55% (14,117.41) Aaa/AA+ AA+ 0.75 0.72 9128285J5 UNITED STATES TREASURY 3.0 10/31/2025 1,600,000.00 06/02/2022 2.87% 1,606,562.50 1,601,595.86 98.98 4.26% 1,583,758.72 8,220.99 1.65% (17,837.14) Aaa/AA+ AA+ 0.83 0.80 912828M56 UNITED STATES TREASURY 2.25 11/15/2025 1,700,000.00 06/09/2022 3.04% 1,655,839.84 1,688,801.49 98.29 4.28% 1,670,910.72 4,966.16 1.74% (17,890.77) Aaa/AA+ AA+ 0.87 0.84 9128285T3 UNITED STATES TREASURY 2.625 12/31/2025 1,100,000.00 07/13/2022 3.20% 1,079,031.25 1,093,971.07 98.47 4.21% 1,083,220.33 79.77 1.13% (10,750.74) Aaa/AA+ AA+ 1.00 0.97 9128286L9 UNITED STATES TREASURY 2.25 03/31/2026 1,800,000.00 08/03/2022 2.99% 1,753,523.44 1,784,194.49 97.58 4.27% 1,756,525.00 10,347.53 1.83% (27,669.49) Aaa/AA+ AA+ 1.25 1.20 9128286S4 UNITED STATES TREASURY 2.375 04/30/2026 1,600,000.00 09/08/2022 3.42% 1,542,500.00 1,579,059.45 97.58 4.27% 1,561,237.89 6,508.29 1.62% (17,821.56) Aaa/AA+ AA+ 1.33 1.28 91282CLB5 UNITED STATES TREASURY 4.375 07/31/2026 1,750,000.00 11/22/2024 4.40% 1,749,179.69 1,749,229.20 100.16 4.26% 1,752,887.41 32,039.74 1.82% 3,658.21 Aaa/AA+ AA+ 1.58 1.48 912828YG9 UNITED STATES TREASURY 1.625 09/30/2026 2,000,000.00 06/07/2023 4.09% 1,848,984.38 1,920,432.63 95.63 4.25% 1,912,617.96 8,303.57 1.99% (7,814.67) Aaa/AA+ AA+ 1.75 1.68 91282CEF4 UNITED STATES TREASURY 2.5 03/31/2027 1,450,000.00 11/28/2022 4.00% 1,363,566.41 1,405,253.41 96.29 4.25% 1,396,209.23 9,261.68 1.45% (9,044.17) Aaa/AA+ AA+ 2.25 2.13 91282CKJ9 UNITED STATES TREASURY 4.5 04/15/2027 2,000,000.00 05/17/2024 4.58% 1,995,468.75 1,996,434.85 100.50 4.26% 2,010,032.96 19,285.71 2.09% 13,598.11 Aaa/AA+ AA+ 2.29 2.13 91282CEW7 UNITED STATES TREASURY 3.25 06/30/2027 1,500,000.00 10/05/2022 4.00% 1,451,308.59 1,474,283.70 97.65 4.25% 1,464,820.52 134.67 1.52% (9,463.18) Aaa/AA+ AA+ 2.50 2.36 36 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of December 31, 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 91282CFB2 UNITED STATES TREASURY 2.75 07/31/2027 2,000,000.00 06/21/2024 4.46% 1,901,875.00 1,918,431.43 96.31 4.28% 1,926,146.12 23,016.30 2.00% 7,714.69 Aaa/AA+ AA+ 2.58 2.42 91282CFH9 UNITED STATES TREASURY 3.125 08/31/2027 1,600,000.00 01/20/2023 3.59% 1,568,437.50 1,581,749.70 97.12 4.28% 1,553,923.06 16,988.95 1.62% (27,826.65) Aaa/AA+ AA+ 2.67 2.49 91282CFM8 UNITED STATES TREASURY 4.125 09/30/2027 1,250,000.00 03/08/2023 4.44% 1,234,130.86 1,240,449.92 99.61 4.28% 1,245,063.65 13,173.94 1.29% 4,613.73 Aaa/AA+ AA+ 2.75 2.54 91282CGH8 UNITED STATES TREASURY 3.5 01/31/2028 1,300,000.00 10/17/2024 3.90% 1,284,105.47 1,285,098.88 97.71 4.30% 1,270,200.04 19,040.76 1.32% (14,898.84) Aaa/AA+ AA+ 3.08 2.84 9128283W8 UNITED STATES TREASURY 2.75 02/15/2028 1,500,000.00 09/27/2024 3.51% 1,464,140.63 1,466,845.35 95.27 4.39% 1,428,984.00 15,580.84 1.49% (37,861.35) Aaa/AA+ AA+ 3.13 2.91 91282CGT2 UNITED STATES TREASURY 3.625 03/31/2028 1,000,000.00 11/08/2024 4.19% 982,343.75 983,058.58 97.94 4.31% 979,422.87 9,261.68 1.02% (3,635.71) Aaa/AA+ AA+ 3.25 2.99 91282CHE4 UNITED STATES TREASURY 3.625 05/31/2028 1,750,000.00 12/30/2024 4.33% 1,711,445.31 1,711,476.23 97.81 4.32% 1,711,668.42 5,576.92 1.78% 192.19 Aaa/AA+ AA+ 3.42 3.16 91282CHX2 UNITED STATES TREASURY 4.375 08/31/2028 1,000,000.00 12/13/2024 4.25% 1,004,101.56 1,004,053.09 100.08 4.35% 1,000,794.76 14,865.33 1.04% (3,258.33) Aaa/AA+ AA+ 3.67 3.30 9128285M8 UNITED STATES TREASURY 3.125 11/15/2028 1,800,000.00 04/10/2024 4.66% 1,687,078.13 1,704,673.72 95.69 4.35% 1,722,394.33 7,303.18 1.79% 17,720.62 Aaa/AA+ AA+ 3.88 3.57 91282CES6 UNITED STATES TREASURY 2.75 05/31/2029 1,200,000.00 09/05/2024 3.60% 1,155,984.38 1,158,964.60 93.50 4.39% 1,121,962.00 2,901.10 1.17% (37,002.61) Aaa/AA+ AA+ 4.41 4.07 91282CLC3 UNITED STATES TREASURY 4.0 07/31/2029 1,500,000.00 10/29/2024 4.30% 1,493,320.31 1,493,559.15 98.42 4.39% 1,476,225.63 25,108.70 1.53% (17,333.52) Aaa/AA+ AA+ 4.58 4.07 Total US Treasury 45,600,000.00 3.26% 44,590,675.80 45,016,534.59 97.97 4.29% 44,664,695.49 292,009.72 46.43% (351,839.11) Aaa/AA+ AA+ 1.86 1.73 Total Portfolio 97,616,810.49 3.74% 95,907,677.19 96,600,337.29 98.42 4.38% 96,193,532.45 696,278.13 100.00% (406,804.83) Aa1/AA AA+ 2.08 1.86 Total Market Value + Accrued 96,889,810.59 37 HOLDINGS REPORT Danville NERIAD Improvement Fund (89-1 90A) | Account #24 | As of December 31, 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 158.05 -- 0.00% 158.05 158.05 1.00 0.00% 158.05 0.00 0.02% 0.00 Aaa/AAA AAA 0.00 0.00 Total Cash 158.05 0.00% 158.05 158.05 1.00 0.00% 158.05 0.00 0.02% 0.00 Aaa/AAA AAA 0.00 0.00 MONEY MARKET FUND VP4530003 ALLSPRING:TRS+ MM I 28,563.55 -- 4.33% 28,563.55 28,563.55 1.00 4.33% 28,563.55 0.00 2.96% 0.00 Aaa/AAAm NA 0.00 0.00 Total Money Market Fund 28,563.55 4.33% 28,563.55 28,563.55 1.00 4.33% 28,563.55 0.00 2.96% 0.00 Aaa/AAAm NA 0.00 0.00 US TREASURY 912797KJ5 UNITED STATES TREASURY 03/20/2025 200,000.00 04/26/2024 5.21% 191,044.44 197,850.67 99.11 4.27% 198,213.38 0.00 20.54% 362.71 P-1/A-1+ F1+ 0.22 0.21 912797LN5 UNITED STATES TREASURY 06/12/2025 250,000.00 06/13/2024 5.08% 237,836.98 244,571.88 98.15 4.27% 245,373.13 0.00 25.43% 801.25 P-1/A-1+ F1+ 0.45 0.43 912797MH7 UNITED STATES TREASURY 09/04/2025 250,000.00 09/05/2024 4.20% 239,875.83 243,138.99 97.24 4.21% 243,088.13 0.00 25.19% (50.86) P-1/A-1+ F1+ 0.68 0.66 91282CGA3 UNITED STATES TREASURY 4.0 12/15/2025 250,000.00 12/16/2024 4.26% 249,384.77 249,410.19 99.83 4.18% 249,576.92 467.03 25.86% 166.73 Aaa/AA+ AA+ 0.96 0.92 Total US Treasury 950,000.00 4.66% 918,142.02 934,971.73 98.56 4.23% 936,251.56 467.03 97.02% 1,279.83 Aaa/AAA AAA 0.59 0.57 Total Portfolio 978,721.60 4.65% 946,863.62 963,693.33 95.66 4.24% 964,973.16 467.03 100.00% 1,279.83 Aaa/AAA AAA 0.58 0.56 Total Market Value + Accrued 965,440.19 38 TRANSACTIONS 39 TRANSACTION LEDGER Danville Short Term Treasury Pool | Account #21|10/01/2024 Through 12/31/2024| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 10/18/2024 91282CGH8 1,300,000.00 UNITED STATES TREASURY 3.5 01/31/2028 98.777 3.90%(1,284,105.47)(9,767.66)(1,293,873.13)0.00 Purchase 10/31/2024 91282CLC3 1,500,000.00 UNITED STATES TREASURY 4.0 07/31/2029 99.555 4.10%(1,493,320.31)(15,000.00)(1,508,320.31)0.00 Purchase 11/12/2024 91282CGT2 1,000,000.00 UNITED STATES TREASURY 3.625 03/31/2028 98.234 4.19%(982,343.75)(4,282.28)(986,626.03)0.00 Purchase 11/25/2024 91282CLB5 1,750,000.00 UNITED STATES TREASURY 4.375 07/31/2026 99.953 4.40%(1,749,179.69)(24,341.88)(1,773,521.57)0.00 Purchase 12/16/2024 91282CHX2 1,000,000.00 UNITED STATES TREASURY 4.375 08/31/2028 100.410 4.25%(1,004,101.56)(12,931.63)(1,017,033.19)0.00 Purchase 12/23/2024 3137F4D41 1,000,000.00 FHMS K-074 A2 3.6 01/25/2028 97.492 4.45%(974,921.88)(2,200.00)(977,121.88)0.00 Purchase 12/31/2024 91282CHE4 1,750,000.00 UNITED STATES TREASURY 3.625 05/31/2028 97.797 4.33%(1,711,445.31)(5,402.64)(1,716,847.95)0.00 Total Purchase 9,300,000.00 (9,199,417.97)(73,926.09)(9,273,344.06)0.00 TOTAL ACQUISITIONS 9,300,000.00 (9,199,417.97)(73,926.09)(9,273,344.06)0.00 DISPOSITIONS Maturity 10/16/2024 45950KCR9 (1,000,000.00)INTERNATIONAL FINANCE CORP 1.375 10/16/2024 100.000 1.38%1,000,000.00 0.00 1,000,000.00 0.00 Maturity 10/31/2024 912828YM6 (1,350,000.00)UNITED STATES TREASURY 1.5 10/31/2024 100.000 1.50%1,350,000.00 0.00 1,350,000.00 0.00 Maturity 11/08/2024 3130APQ81 (900,000.00)FEDERAL HOME LOAN BANKS 1.0 11/08/2024 100.000 1.00%900,000.00 0.00 900,000.00 0.00 Maturity 11/15/2024 91282CDH1 (1,500,000.00)UNITED STATES TREASURY 0.75 11/15/2024 100.000 0.75%1,500,000.00 0.00 1,500,000.00 0.00 Maturity 12/15/2024 91282CDN8 (850,000.00)UNITED STATES TREASURY 1.0 12/15/2024 100.000 1.00%850,000.00 0.00 850,000.00 0.00 Maturity 12/20/2024 3130AQF40 (1,000,000.00)FEDERAL HOME LOAN BANKS 1.0 12/20/2024 100.000 1.00%1,000,000.00 0.00 1,000,000.00 0.00 Maturity 12/31/2024 912828YY0 (1,500,000.00)UNITED STATES TREASURY 1.75 12/31/2024 100.000 1.75%1,500,000.00 0.00 1,500,000.00 0.00 40 TRANSACTION LEDGER Danville Short Term Treasury Pool | Account #21|10/01/2024 Through 12/31/2024| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Total Maturity (8,100,000.00)8,100,000.00 0.00 8,100,000.00 0.00 TOTAL DISPOSITIONS (8,100,000.00)8,100,000.00 0.00 8,100,000.00 0.00 41 TRANSACTION LEDGER Danville NERIAD Improvement Fund (89-1 90A) | Account #24|10/01/2024 Through 12/31/2024| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 12/17/2024 91282CGA3 250,000.00 UNITED STATES TREASURY 4.0 12/15/2025 99.754 4.26%(249,384.77)(54.95)(249,439.72)0.00 Total Purchase 250,000.00 (249,384.77)(54.95)(249,439.72)0.00 TOTAL ACQUISITIONS 250,000.00 (249,384.77)(54.95)(249,439.72)0.00 DISPOSITIONS Maturity 12/15/2024 91282CDN8 (250,000.00)UNITED STATES TREASURY 1.0 12/15/2024 100.000 1.00%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 42 IMPORTANT DISCLOSURES 2024 Chandler Asset Management, Inc, An Independent Registered Investment Adviser. Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index. Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services. This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates. Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy. Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively. 43 BENCHMARK DISCLOSURES Benchmark Disclosure 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 rebalancing date. 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 $250 million for all other securities. 44 Supplement to Quarterly Investment Report Town Managed Cash Account Average Average Maturity Yield Cost Town Funds 0 4.477%10,494,141 Trust Fund 0 4.477%3,260,950 . Community Development Agency DS/Successor Agency 0 4.477%69,203 NERIAD 0 4.477%167,636 Total LAIF Funds Managed by the Town 13,991,930$ LAIF Funds Managed by the Town (Local Agency Investment Fund) November 2024 9.1