Information Item. Date: May 11, 2021

(1)

Information Item

1 Date: May 11, 2021

To:

Mayor and City Council

From:

Gigi Decavalles-Hughes, Director of Finance/City Treasurer

Subject:

City Monthly Cash and Investment Report for January 2021

Introduction

In compliance with the City Charter, State law, and the City’s Investment Policy, the

attached monthly report provides information concerning City investments and cash held

and/or managed by the Director of Finance/City Treasurer as of January 31, 2021.

Discussion

The January 2021 Cash and Investment Report provides an updated review of the City’s

investment portfolio and cash position. The source of the funds in the pooled investment

portfolio is primarily reserves already restricted, assigned, or committed for specific

purposes as well as “rainy day” or contingency funds set aside to cover extraordinary

events. The book value of cash and investments held in the pooled portfolio decreased

by $1.2 million in January to $658.9 million. The pooled portfolio yield-to-maturity fell

four basis points in January ending the month at 0.57% and is down one hundred

forty-one basis points from forty-one year earlier. These decreases reflect the continuing low interest

rate environment that began with the pandemic-induced recession

.

Year-to-date

investment earnings on a cash basis are up 2.7% over the same period last fiscal year

as the unprecedented swiftness and size of the interest rate declines at the start of the

pandemic provided unique opportunities to sell certain investments at large gains and still

realize a net positive cash flow over the full investment horizon of the sold investment

(inclusive of the gain). Exclusive of these gains on sales, year-to-date investment income

is down approximately $4.1 million (48%) from the prior year. While the global, state, and

local economies began to reopen in many areas, the resurgence of the virus in the winter

led to new shutdowns further increasing economic pain for many areas including

increased business closures, particularly in the retail and hospitality sectors.

(2)

2 included $20.8 million in debt proceeds held in trust with various fiscal agents, primarily

from remaining bond proceeds from the City Services Building Project (including City Hall

South remodel) and the Fire Station Project (including the Fire Training Facility), $18.1

million in other funds held in trust, primarily from Cemetery and Mausoleum Perpetual

Care Funds, and $27,000 in petty cash/change funds for a total balance of $697.9 million.

Socially Responsible Investing

The City’s investment policy dictates certain socially responsible guidelines that should

be adhered to in the investment of the City’s excess funds. A prime example of this is the

prohibition of investments in fossil fuel-related companies and banks that lend to those

companies. To enhance the socially responsible nature of the City’s investment portfolio,

staff continues to research and analyze green bonds and social impact bonds as potential

investment alternatives. Green bonds are issued by government agencies, private

corporations, and institutions such as the World Bank to finance projects that benefit the

climate and produce other environmentally beneficial projects. The proceeds from social

impact bonds are used for programs such as affordable housing, reducing poverty, or

other positive sustainable and social outcomes. Investments in green bonds and social

impact bonds still need to meet the City’s legal and strategic investment parameters. As

of January 31, 2021 the City’s portfolio had a total of $19.0 million in green bonds and

$16.9 million in social impact bonds. Approximately 6.8% of total invested funds

(excluding funds held in the State Local Agency Investment Fund) are invested in socially

responsible bonds.

In compliance with Governmental Accounting Standards, the Monthly Cash and

Investment Report provides the fair market value of all investments held by the City, with

certain exceptions, as of the last day of the month. The fair market value may be greater

or less than the original purchase price (book/reported value) of the investments due to

fluctuations in the market resulting in either an unrealized gain or loss for financial

disclosure purposes only. Since it is the City’s policy to hold most securities to maturity,

these fluctuations in market value do not affect the redemption value of the securities or

the overall yield-to-maturity of the portfolio. The book values of investments shown in this

report are exclusive of amortization/accretion of premiums/discounts. As of January 31,

2021, the City’s portfolio shows an unrealized loss of $0.4 million

.

Attached is a summary of investment activity as well as a detailed report of public monies

held by the City Treasurer as of January 31, 2021.

(3)

3 Prepared by:

David Carr, Assistant City Treasurer

Attachments:

1 – Investment Highlights

(4)

4 ATTACHMENT 1

Investment Highlights

January 31, 2021

 As of January 31, 2021, the book value of the pooled cash and investment portfolio

was $658.9 million, $1.2 million less than in the prior month.

 Portfolio value is $118.1 million less than one year ago.

 As of January 31, 2021, yield to maturity is 0.57%.

 The yield is down four basis points from the prior month and down one hundred

forty-one basis points from one year earlier reflecting the continuing low interest

rate environment.

$450

$500

$550

$600

$650

$700

$750

$800

Feb Mar

Apr May Jun

Jul

Aug Sep

Oct Nov Dec Jan

Millions

Portfolio Size

Current Year

Prior Year

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Feb

Mar

Apr

May

Jun

Jul

Aug Sep

Oct

Nov

Dec

Jan

Yield to Maturity

(5)

5  Year-to-date investment earnings (cash basis) are up 2.7% from one year earlier.

The increase is entirely due to gain on sales of investments. Exclusive of these

gains, year-to-date investment income is actually down approximately $4.1

million (48%) from the prior year.

Unrealized Gain/(Loss)

($2.0)

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Millions

 As of January 31, 2021, the book value of the portfolio exceeds the market value

by approximately $0.4 million. The unrealized gain was essentially eliminated

between July and October primarily due to recognized gains from bond sales.

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

July

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Millions

Fiscal Year-to-Date Investment Earnings

(Cumulative by Month)

(6)

6 ATTACHMENT 2

Cash and Investment Report

January 31, 2021

Prepared by:

Gigi Decavalles-Hughes, Director of Finance/City Treasurer

David R. Carr, Assistant City Treasurer

(7)

City of Santa Monica

Cash Receipts, Disbursements and Cash Balances

January 31, 2021

7 Petty Cash/Change Funds

$27,197.50

Cash Held in General Bank Account

Union Bank (1)

$59,516,842.87

Total Cash Held in General Bank Account

$59,516,842.87

Invested Funds

BNY Mellon Custodial Account

Corporate Bonds

$98,104,381.25

US Treasuries

$0.00

Municipal Bonds

$61,563,376.66

Supranationals

$23,593,000.00

Commercial Paper

$7,490,902.77

Federal Agencies Securities

$334,054,749.72

Total BNY Mellon Custodial Account

$524,806,410.40

State of California Local Agency Investment Fund - City

$74,584,073.99

Total Invested Funds

$599,390,484.39

Total Pooled Cash and Invested Funds

$658,907,327.26

Restricted Cash/Investments Held in Trust/Debt Proceeds

Union Bank-Earthquake Recovery Redevelopment 2006

Tax Allocation Refunding Bonds Series A & B

$4.70

Union Bank-Civic Center Parking Project 2015 Lease Revenue Bonds

$1.53

Union Bank-RDA 2011 Tax Allocation Bonds

$2,262,467.79

BNY-2011 Parking Structure Series A & B

$9.58

BNY-2017 City Services Building PFA

$9,747,917.07

BNY-2018 Fire Station 1 PFA

$6,433,346.85

BNY-Public Safety Facility Bonds 2009 Refunding

$23,682.62

U.S. Bank-Wastewater Enterprise Revenue Bonds-2012 Refunding

$2,332,525.00

Total Restricted Cash/Investments Held in Trust

$20,799,955.14

Other Restricted Funds/Funds Held in Trust

Cemetery Perpetual Care Fund (3)

$14,374,230.77

Mausoleum Perpetual Care Fund (3)

$1,739,268.34

Union Bank - Santa Monica Redevelopment Successor Agency RPTTF

$1,768,411.88

Union Bank - HUD Depository Account (4)

$51,597.94

Union Bank - Payroll Account

$101,525.44

Unon Bank - Public Agency Family Self Sufficiency Program (2)

$87,172.60

State of California Local Agency Investment Fund - RDA

$872.12

Total Other Funds Held in Trust

$18,123,079.09

(8)

City of Santa Monica

Cash Receipts, Disbursements and Cash Balances

January 31, 2021

8 (1) This is the actual general bank account balance as of 1/31/21. This only reflects checks and warrants that have been

presented for payment and deposits received by the bank. The balance on deposit per the City’s books would reflect

reductions for all checks and warrants issued and an increase for all deposits transmitted. Housing Authority, Rent

Control Board, and Parking Authority Funds are included in the totals. However, Successor Agency funds are not

included in the pooled portfolio.

(2) The City of Santa Monica Housing Authority administers the Family Self Sufficiency Program. An escrow account is

set up for each family in the program. The Housing Authority maintains and releases the escrow funds as required

by HUD regulations.

(3) The Cemetery Perpetual Care Funds and the Mausoleum Perpetual Care Funds are held in trust by Charles Schwab

& Company, Inc. and managed by the investment firm RNC Genter Capital Management. Market value is shown

since a large portion of the portfolio is in equities.

(4) HUD Depository account is used to receive monthly housing assistance payments from HUD.

Pursuant to Section 711d of the City Charter, I submit the following:

Cash and Investments - December 31, 2020

$

660,110,568.03

Receipts - Union Bank

$

60,567,154.02

Disbursements - Union Bank

$

(61,770,394.79)

Cash and Investments - January 31, 2021

$

658,907,327.26

Pooled portfolio only (cash and investments). Excludes certain investments held in trust by third

parties such as bond proceeds, perpetual care funds, and other escrow accounts. Also excludes

payroll account and Successor Agency account at Union Bank.

(9)

City

of

Santa

Monica Monthly Cash and Investment Report

9 January 31, 2021

Overview

As of January 31, 2021, total City cash and investments (including cash held for the Successor Agency to the

Redevelopment Agency) were $697.9 million, a $2.8 million decrease from the prior month. The pooled portfolio decreased

by $1.2 million in January. As stated previously, City revenue streams, particularly Transient Occupancy Taxes and

parking-related revenues continue to be significantly disrupted by the COVID Pandemic. Restricted Cash/Investments Held in Trust

decreased by $2.2 million. Other Restricted Funds/Funds Held in Trust increased $0.6 million. Total cash and investments

are categorized as follows:

Petty Cash/Change Funds

$

27,197.50

Pooled Cash and Investments

$

658,907,327.26

Restricted Cash/Investment Held in Trust

$

20,799,955.14

Other Funds Held in Trust

$

18,123,079.09

Total

$

697,857,558.99

Definitions

 Basis Point – One hundredth of one percent (.01%).

 Book (Reported) Value – The price paid for the security at purchase.

 Bullets – A security with a fixed coupon or interest rate that cannot be redeemed by the issuer before the maturity

date.

 Callable

Securities – A security that can be redeemed by the issuer before the maturity date.

 Duration – A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to

be received from a security. The duration of a security is a useful indicator of its price volatility for given changes in

interest rates.

 Green

Bonds – Green bonds are used to finance projects that promote environmental and/or climate benefits. Green

bonds eligible for inclusion in the City’s investment portfolio are issued by government agencies, private corporations,

and institutions such as the World Bank.

 Market

Value – The price at which a security is currently trading and could be presumably bought or sold.

 Par

Value – The full face value of the security.

 Rebalancing – Strategy whereby low yielding securities are sold at a loss with the proceeds used to purchase higher

yielding securities.

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City

of

Santa

Monica Monthly Cash and Investment Report

10 January 31, 2021

 Social Impact Bonds – Social impact bonds are used to finance programs such as affordable housing, poverty

reduction, or other positive sustainable and social outcomes. Social impact bonds eligible for inclusion in the City’s

investment portfolio are typically issued by government agencies, and institutions such as the World Bank.

 Supranational – Supranational organizations are international financial institutions that are generally established by

agreements among nations, with member nations contributing capital and participating in management.

Supranational bonds finance economic and infrastructure development and support environmental protection,

poverty reduction, and renewable energy around the globe, which are issued by International Bank for Reconstruction

and Development, International Finance Corporation, or Inter-American Development Bank.

 Unrealized

Gain/Loss – Difference between the current market value and purchase price (book value) of a security.

 Yield to Maturity – The rate of return of a security held to maturity when both interest payments and the investor’s

gain or loss (premium paid or discount taken) on the security is taken into account.

Pooled Investment Portfolio

As of January 31, 2021, the portfolio size (unamortized book value/purchase price) of City pooled cash and investments

was $658.9 million, $1.2 million less than in the prior month. Since the City holds most investments to maturity, variations

in portfolio book value are typically due to receipt and expenditure patterns during the month rather than any realized gains

or losses on securities. Additionally, the City does not amortize premiums or accrete discounts except for financial reporting

purposes on the last day of each fiscal year. Seventeen investments were made during the month ($38.8 million), four

investments matured ($21.5 million), four investments were called ($10.5 million), and no investments were sold. The

month-end balance of cash held in the City’s general bank account is about $7.6 million less than in the prior month.

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City

of

Santa

Monica Monthly Cash and Investment Report

11 January 31, 2021

Portfolio Composition

The portfolio is appropriately diversified and is in compliance with

the City’s Investment Policy and applicable provisions of the State

Government Code. The largest sector of the portfolio is Federal

Agency Securities (50.7%). The remaining 49.3% includes

Corporate Medium Term Notes (14.9%), State Local Agency

Investment Fund (LAIF) balances (11.3%), Municipal Bonds

(9.4%), Supranationals (3.6%), Commercial Paper (1.1%), and

Cash (9.0%). This portfolio mix allows the City to maintain its

primary investment objectives of safety and liquidity while attaining

a rate of return consistent with the City’s Investment Policy,

investment strategy, and market conditions.

Socially Responsible Investing

The City’s investment policy dictates certain socially responsible guidelines that should be adhered to in the investment of

the City’s excess funds. A prime example of this is the prohibition of investments in fossil fuel-related companies and banks

that lend to those companies. To enhance the socially responsible nature of the City’s investment portfolio, staff continues

to research and analyze green bonds and social impact bonds as potential investment alternatives. Green bonds are issued

by government agencies, private corporations, and institutions such as the World Bank to finance projects that benefit the

climate and produce other environmentally beneficial projects. The proceeds from social impact bonds are used for projects

such as affordable housing, reducing poverty, or other positive sustainable and social outcomes. Investments in green

bonds and social impact bonds still need to meet the City’s legal and strategic investment parameters. As of January 31,

2021 the City’s portfolio had a total of $19.0 million in green bonds and $16.9 million in social impact bonds representing

approximately 6.8% of total invested funds (excluding funds invested in the State Local Agency Investment Fund).

Additionally, the economic, social, and governance (ESG) profile of corporations has been added as a component of credit

analysis when considering investments in corporate medium-term notes.

Fed. Agency Bullets 12.3% Callable Agencies 38.4% Cash 9.0% Corporates 14.9% LAIF 11.3% Comm'l Paper 1.1% Municipal Bonds 9.4% Supranationals 3.6%

Portfolio Composition

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City

of

Santa

Monica Monthly Cash and Investment Report

12 January 31, 2021

Portfolio Comparison

The chart to the right shows the overall structure of the

portfolio by type of investment compared to last month.

There were no significant changes in the structure of the

portfolio from the prior month. The bond market, financial

and economic conditions, and portfolio structure are

continuously evaluated when making investment decisions.

Rebalancing of Portfolio

As noted in the previous reports, staff has expanded the parameters of rebalancing to look for opportunities to improve

portfolio performance even in times of low interest rates. When conducting rebalancing, the primary portfolio objectives of

safety and liquidity must be maintained. Specifically, the City may realize a book gain or loss due to the sale of a security.

These rebalancing sales only occur if:

1. A net gain on the sale is realized and there is net positive cash flow over the full investment horizon of the sold

investment (inclusive of the book gain), or

2. If a security is sold at a book loss, cash flow from any loss is made up by additional income resulting from the higher

yield on the purchased bonds on or before the maturity date of the sold bonds or the first call date of the newly

purchased bonds (whichever is earlier).

$0

$50

$100 $150 $200 $250 $300

Federal Agency Bullets

Callable Agencies

Corporates

LAIF-City

Supranationals

Municipal Bonds

Commercial Paper

Cash

Portfolio Comparison

Jan-21

Dec-20

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City

of

Santa

Monica Monthly Cash and Investment Report

13 January 31, 2021

No rebalancing actions occurred during the month.

Portfolio Yield

Benchmark interest rates fell slightly in January again approaching record lows. The month-end two-year Constant Maturing

Treasury security yield (CMT) fell two basis points to 0.11%. The rate is 147 basis points below the 2019 year-end level,

and the five-year rate has shown a similar pattern. The two-year rate is now 276 basis points less than its eleven year high

reached in October 2018. The twelve-month moving

average fell eleven basis points to 0.30%. The portfolio

yield-to-maturity fell by four basis points to 0.57%. Rates,

particularly in the shorter maturities, are forecast to remain

at low levels for an extended period as world economies

begin the recovery from the pandemic-induced downturn.

The Portfolio Yield chart compares the month-end portfolio

yield to the twelve-month moving averages of the two-year

Constant Maturing Treasury (CMT) security yield and State

Local Agency Investment Fund (LAIF) yield. The

twelve-month moving average LAIF yield fell thirteen basis points

to 1.04% in January, and the LAIF month-end rate fell eight

basis points to 0.46%. LAIF rate changes tend to lag the

market in general and will continue to decline over the next

few months. However, the City is keeping the maximum

allowable balance in LAIF to take advantage of the current

rate advantage. The yield-to-maturity does not include the

impact of the earnings allowance earned on deposits in the City’s general bank account. This allowance is not payable to

the City in cash and can only be used to offset bank fees. This rate has also declined significantly due the interest rate

declines.

0.0%

0.4%

0.8%

1.2%

1.6%

2.0%

2.4%

2.8%

Aug

Sep

Oct

Nov

Dec

Jan

Portfolio Yield

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City

of

Santa

Monica Monthly Cash and Investment Report

14 January 31, 2021

At its January meeting the Federal Reserve Open Market Committee left the benchmark target Fed Funds rate at a range

of 0 to 0.25%. The economy remains highly dependent on the course of the coronavirus pandemic including vaccination

rollouts, and the Fed indicated rates will stay in the same range to achieve maximum employment and a 2% long-term

inflation rate. Economic activity has continued to improve but the growth moderated some due to the winter resurgence of

the virus and will remain below pre-pandemic levels for some time. The unemployment rate fell to 6.3% in January. Gross

domestic product (GDP) expanded at an annualized rate of 4.3% in the fourth quarter following a 33.4% record gain in the

third quarter after contracting 31.4% and 5% in the first two quarters of the year. A recent Bloomberg survey of

top economists anticipate GDP to grow by more than 6% in 2021 and return to pre-pandemic levels by late 2021 or early

2022. The stock market, as measured by the Dow Jones Industrial Average, fell by about 2% in January, but remains in

sight of record levels and is still more than 60% above the recent low in March.

The City’s portfolio yield-to-maturity continues to decline as interest rates continue near record low levels and are expected

to continue to remain low the foreseeable future. As a result, many callable investments are being called and therefore

reinvested at lower yields. Net investment income on a cash basis in January was $0.5 million, and year-to-date earnings

were up 2.7% from the same period last fiscal year. However, as noted above, exclusive of gains on investment sales,

year-to-date investment income is actually down approximately $4.1 million (48%) from the prior year.

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YTM 365

Page 1

Par Value Book Value

Maturity Date Stated Rate Market Value

January 31, 2021

Portfolio Details - Investments

Average Balance Issuer

Portfolio Management

City of Santa Monica

Days to Maturity Term CUSIP Investment # Purchase Date

Federal Agency Coupon

0.180 Federal Farm Credit Bank

12251 06/09/2020 3,000,000.00 3,000,360.00 2,998,464.00 0.125 339 05/14/2021

3133ELZH0 102

1.423 Federal Home Loan Bank

12145 10/04/2019 4,000,000.00 4,030,680.00 4,031,280.00 1.875 642 07/07/2021

3130AGLD5 156

11772 07/14/2016 1,000,000.00 1,004,690.00 996,270.00 1.125 1,826 07/14/2021 3130A8QS5 163 0.160 Farmer Mac 12348 09/28/2020 5,000,000.00 5,000,550.00 5,000,000.00 0.160 365 09/28/2021 31422BV98 239 0.140 Federal Farm Credit Bank

12337 09/09/2020 3,000,000.00 2,999,400.00 3,000,000.00 0.140 456 12/09/2021

3133EL6P4 311

12372 11/04/2020 5,000,000.00 4,999,550.00 5,000,000.00 0.140 457 02/04/2022

3133EMFE7 368

12379 11/17/2020 3,000,000.00 3,000,450.00 3,000,000.00 0.170 457 02/17/2022

3133EMGQ9 381

12313 08/24/2020 4,000,000.00 3,999,960.00 4,000,000.00 0.170 549 02/24/2022 3133EL4M3 388 0.125 Farmer Mac 12395 12/29/2020 2,500,000.00 2,499,650.00 2,500,000.00 0.125 455 03/29/2022 31422B5L0 421 0.300 Fed Home Loan Mortgage Corp

12240 05/05/2020 4,000,000.00 4,000,800.00 4,000,000.00 0.300 730 05/05/2022

3134GVRJ9 458

12259 06/22/2020 2,000,000.00 2,003,680.00 1,999,800.00 0.260 730 06/22/2022

3133ELN26 506

0.300 Fed Home Loan Mortgage Corp

12271 06/30/2020 4,000,000.00 4,003,080.00 4,000,000.00 0.300 730 06/30/2022

3134GV2M9 514

12279 07/13/2020 3,000,000.00 3,005,340.00 2,997,990.00 0.200 730 07/13/2022 3133ELT95 527 0.270 Farmer Mac 12283 07/22/2020 10,000,000.00 10,001,300.00 10,000,000.00 0.270 730 07/22/2022 31422BK33 536 0.200 Fed Home Loan Mortgage Corp

12315 08/19/2020 4,000,000.00 4,000,040.00 4,000,000.00 0.200 730 08/19/2022 3134GWPQ3 564 0.240 Farmer Mac 12327 09/08/2020 5,000,000.00 4,999,900.00 5,000,000.00 0.240 730 09/08/2022 31422BT26 584 0.170 Federal Farm Credit Bank

12360 10/21/2020 2,000,000.00 2,000,080.00 2,000,000.00 0.170 730 10/21/2022

3133EMDR0 627

12324 08/26/2020 3,000,000.00 3,000,120.00 3,000,000.00 0.250 814 11/18/2022

3134GWQC3 655

12272 06/29/2020 2,000,000.00 2,001,320.00 2,000,000.00 0.350 913 12/29/2022

3134GV2R8 696

12314 08/24/2020 3,000,000.00 3,000,150.00 3,000,000.00 0.300 914 02/24/2023

3134GWRS7 753

12388 12/30/2020 3,000,000.00 3,000,330.00 3,000,000.00 0.190 820 03/30/2023

3134GXJA3 787

12334 09/09/2020 4,000,000.00 4,000,400.00 4,000,000.00 0.270 1,003 06/09/2023

3134GWJ56 858

12387 12/15/2020 2,000,000.00 1,999,240.00 2,000,000.00 0.200 912 06/15/2023

3133EMKG6 864

12258 06/23/2020 3,000,000.00 3,001,500.00 3,000,000.00 0.430 1,095 06/23/2023

3134GVR75 872

0.600 CALIFORNIA EARTHQUAKE AUTH

12405 01/08/2021 2,870,000.00 2,940,802.90 2,932,701.45 1.477 904 07/01/2023

13017HAK2 880

12354 10/07/2020 2,000,000.00 2,000,120.00 2,000,000.00 0.250 1,003 07/07/2023

3134GWVF0 886

12285 07/20/2020 3,000,000.00 3,003,840.00 3,000,000.00 0.410 1,095 07/20/2023 3134GWAK2 899 0.400 Farmer Mac 12290 07/27/2020 5,000,000.00 5,000,150.00 5,000,000.00 0.400 1,095 07/27/2023 31422BK82 906 0.247 HUD HOUSING-URB DEV

12359 10/16/2020 3,900,000.00 4,142,541.00 4,202,731.00 2.800 1,019 08/01/2023

911759ME5 911

0.300 Federal National Mort Assoc

12296 08/03/2020 2,000,000.00 2,002,500.00 2,000,000.00 0.300 1,095 08/03/2023

3135G05P4 913

12374 11/04/2020 4,000,000.00 4,001,560.00 4,000,000.00 0.250 1,003 08/04/2023 3134GW7L4 914 0.375 Farmer Mac 12317 08/24/2020 6,000,000.00 5,993,760.00 5,995,500.00 0.350 1,095 08/24/2023 31422BQ86 934 0.345 Federal National Mort Assoc

12320 08/25/2020 3,000,000.00 2,998,380.00 3,000,000.00 0.345 1,095 08/25/2023

3136G4Y80 935

12322 08/28/2020 3,000,000.00 2,997,900.00 3,000,000.00 0.330 1,095 08/28/2023

3136G42B8 938

12333 09/08/2020 3,000,000.00 2,998,560.00 3,000,000.00 0.300 1,095 09/08/2023

3134GWJ49 949

12336 09/10/2020 3,000,000.00 2,999,130.00 3,000,000.00 0.290 1,093 09/08/2023 3134GWL53 949 0.300 Farmer Mac 12357 10/19/2020 3,000,000.00 3,000,000.00 3,000,000.00 0.300 1,067 09/21/2023 31422BZ78 962 0.260 Farmer Mac 12350 09/29/2020 3,000,000.00 2,996,400.00 3,000,000.00 0.260 1,095 09/29/2023 31422BW97 970 Portfolio INVT CC Run Date: 02/10/2021 - 17:09 _{PM (PRF_PM2) 7.3.0} Report Ver. 7.3.6.1

15

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YTM 365

Page 2

January 31, 2021

Portfolio Details - Investments

Portfolio Management

City of Santa Monica

12369 10/27/2020 2,000,000.00 2,000,080.00 2,000,000.00 0.300 1,095 10/27/2023 3136G46A6 998 0.320 Farmer Mac 12384 12/14/2020 5,000,000.00 5,001,400.00 5,000,000.00 0.320 1,095 12/14/2023 31422B4B3 1,046 0.270 Farmer Mac 12393 12/18/2020 3,000,000.00 2,995,440.00 3,000,000.00 0.270 1,095 12/18/2023 31422B4S6 1,050 1.750 Farmer Mac 12179 12/20/2019 2,000,000.00 2,029,880.00 2,000,000.00 1.750 1,461 12/20/2023 31422BQR4 1,052 0.300 Fed Home Loan Mortgage Corp

12352 09/30/2020 2,000,000.00 2,001,180.00 2,000,000.00 0.300 1,185 12/29/2023

3134GWXB7 1,061

12408 01/19/2021 2,000,000.00 2,000,240.00 1,999,760.00 0.230 1,095 01/19/2024

3133EMNG3 1,082

12288 07/23/2020 2,000,000.00 1,998,900.00 1,998,860.00 0.470 1,278 01/22/2024

3133ELX25 1,085

12291 07/30/2020 2,000,000.00 1,992,920.00 2,000,000.00 0.450 1,279 01/30/2024

3136G4E90 1,093

12214 02/26/2020 2,500,000.00 2,502,175.00 2,500,000.00 1.600 1,461 02/26/2024

3134GVCP1 1,120

12224 03/12/2020 2,500,000.00 2,501,300.00 2,500,000.00 1.050 1,461 03/12/2024

3133ELSL9 1,135

12347 09/28/2020 4,000,000.00 3,987,720.00 4,000,000.00 0.320 1,277 03/28/2024 3136G43W1 1,151 0.300 Farmer Mac 12396 01/05/2021 2,500,000.00 2,499,800.00 2,500,000.00 0.300 1,186 04/05/2024 31422B5K2 1,159 0.350 Federal National Mort Assoc

12385 12/03/2020 2,000,000.00 2,004,220.00 2,000,311.11 0.350 1,261 05/17/2024

3135GA3C3 1,201

12243 06/03/2020 2,000,000.00 1,998,860.00 2,000,000.00 0.500 1,461 06/03/2024

3134GVYX0 1,218

12390 12/28/2020 3,000,000.00 3,000,840.00 3,000,000.00 0.350 1,278 06/28/2024

3135GABR1 1,243

12402 01/15/2021 2,000,000.00 1,997,280.00 2,000,000.00 0.250 1,277 07/15/2024

3135GAC90 1,260

12321 08/27/2020 4,000,000.00 3,999,520.00 4,000,000.00 0.450 1,461 08/27/2024

3130AJZH5 1,303

12340 09/10/2020 3,000,000.00 3,000,000.00 3,000,000.00 0.430 1,461 09/10/2024

3133EL6V1 1,317

12339 09/10/2020 2,000,000.00 1,995,380.00 2,000,000.00 0.400 1,461 09/10/2024

3134GWL79 1,317

12341 09/10/2020 3,000,000.00 2,993,070.00 3,000,000.00 0.400 1,461 09/10/2024

3134GWL79 1,317

12342 09/16/2020 4,000,000.00 3,984,160.00 4,000,000.00 0.400 1,461 09/16/2024

3136G43H4 1,323

12345 09/23/2020 3,000,000.00 2,995,050.00 3,000,000.00 0.375 1,461 09/23/2024

3134GWR81 1,330

12389 12/24/2020 2,000,000.00 1,999,560.00 2,000,000.00 0.340 1,370 09/24/2024

3134GXHW7 1,331

12140 09/27/2019 2,000,000.00 2,016,200.00 2,000,000.00 1.890 1,827 09/27/2024

3133EKU20 1,334

12362 10/15/2020 2,000,000.00 2,000,000.00 1,996,500.00 0.400 1,461 10/15/2024

3133EMCN0 1,352

12370 10/28/2020 3,000,000.00 2,995,650.00 3,000,000.00 0.420 1,461 10/28/2024

3136G46R9 1,365

12180 12/16/2019 2,400,000.00 2,412,840.00 2,400,000.00 1.830 1,827 12/16/2024

3134GUC99 1,414

12256 06/09/2020 2,000,000.00 2,010,100.00 2,000,000.00 0.650 1,826 06/09/2025

3134GVE95 1,589

12382 12/16/2020 2,500,000.00 2,498,500.00 2,500,000.00 0.450 1,643 06/16/2025

3135GA5S6 1,596

12254 06/17/2020 2,000,000.00 2,000,660.00 2,000,000.00 0.810 1,826 06/17/2025

3134GVM96 1,597

12253 06/17/2020 3,000,000.00 3,001,050.00 3,000,000.00 0.800 1,826 06/17/2025

3136G4WQ2 1,597

12351 09/30/2020 2,000,000.00 1,991,340.00 2,000,000.00 0.500 1,734 06/30/2025

3134GWXE1 1,610

12267 06/30/2020 2,000,000.00 2,000,820.00 2,000,000.00 0.700 1,826 06/30/2025

3136G4XU2 1,610

12278 07/23/2020 4,000,000.00 4,001,880.00 4,000,000.00 0.700 1,826 07/23/2025

3136G4YV9 1,633

12294 07/30/2020 5,000,000.00 4,999,750.00 5,000,000.00 0.600 1,825 07/29/2025

3136G4G23 1,639

12303 08/18/2020 3,000,000.00 2,978,580.00 3,000,000.00 0.500 1,826 08/18/2025

3136G4K85 1,659

12304 08/18/2020 3,000,000.00 2,985,330.00 2,999,400.00 0.500 1,826 08/18/2025

3136G4H71 1,659

12308 08/19/2020 2,000,000.00 1,996,840.00 1,998,000.00 0.450 1,826 08/19/2025

3136G4M34 1,660

Portfolio INVT CC

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YTM 365

Page 3

January 31, 2021

Portfolio Details - Investments

Portfolio Management

City of Santa Monica

12299 08/25/2020 2,000,000.00 1,992,120.00 2,000,000.00 0.700 1,826 08/25/2025

3134GWLM6 1,666

12338 09/08/2020 5,000,000.00 4,980,250.00 5,000,000.00 0.500 1,826 09/08/2025

3136G42Z5 1,680

12332 09/16/2020 3,000,000.00 2,973,780.00 3,000,000.00 0.520 1,826 09/16/2025 3134GWJ98 1,688 0.570 Farmer Mac 12346 09/17/2020 3,000,000.00 2,998,710.00 3,000,000.00 0.570 1,826 09/17/2025 31422BV23 1,689 0.540 Farmer Mac 12356 10/14/2020 3,000,000.00 2,986,890.00 3,000,000.00 0.540 1,826 10/14/2025 31422BY46 1,716 0.560 Federal National Mort Assoc

12363 10/22/2020 3,000,000.00 2,997,960.00 3,000,000.00 0.560 1,826 10/22/2025

3135G06B4 1,724

12367 10/28/2020 2,000,000.00 1,993,300.00 2,000,000.00 0.560 1,826 10/28/2025

3136G46S7 1,730

12373 11/03/2020 2,000,000.00 1,995,340.00 2,000,000.00 0.540 1,826 11/03/2025 3133EMFR8 1,736 0.625 Farmer Mac 12377 11/10/2020 5,000,000.00 4,976,600.00 5,000,000.00 0.625 1,826 11/10/2025 31422B2R0 1,743 0.570 Federal Home Loan Bank

12392 12/16/2020 2,000,000.00 1,992,880.00 2,000,000.00 0.570 1,826 12/16/2025

3130AKJR8 1,779

12383 12/17/2020 2,000,000.00 2,004,660.00 2,000,000.00 0.625 1,826 12/17/2025

3134GXFV1 1,780

12399 12/30/2020 2,000,000.00 1,999,360.00 2,000,000.00 0.200 1,826 12/30/2025

3130AKLV6 1,793

12397 12/30/2020 2,000,000.00 2,001,360.00 2,004,000.00 0.640 1,826 12/30/2025

3135G06Q1 1,793

12401 01/06/2021 2,000,000.00 2,001,360.00 2,006,413.33 0.640 1,819 12/30/2025

3135G06Q1 1,793

12406 01/28/2021 2,000,000.00 2,000,160.00 2,000,000.00 0.700 1,826 01/28/2026

3130AKQX7 1,822

12417 01/29/2021 2,000,000.00 2,000,000.00 2,000,000.00 0.300 1,826 01/29/2026 3130AKTT3 1,823 275,057,980.89 1,227 274,891,458.90 274,670,000.00 273,651,417.55

Subtotal and Average 0.447 1,072

Federal Agency Discount

12398 12/28/2020 5,000,000.00 5,000,000.00 4,999,611.11 35 02/01/2021

313313BH0 0

12400 01/04/2021 5,000,000.00 5,000,000.00 4,999,677.78 0.080 29 02/02/2021

313385BJ4 1

12246 06/01/2020 4,000,000.00 3,999,840.00 3,994,500.00 0.180 275 03/03/2021

313313CP1 30

12255 06/06/2020 3,000,000.00 2,999,790.00 2,995,680.00 0.178 291 03/24/2021

313313DL9 51

12301 08/05/2020 5,000,000.00 4,998,550.00 4,994,850.00 0.120 309 06/10/2021

313313GS1 129

12326 08/26/2020 5,000,000.00 4,998,500.00 4,995,116.67 0.120 293 06/15/2021

313313GX0 134

12268 06/24/2020 5,000,000.00 4,998,450.00 4,990,447.22 0.190 362 06/21/2021

313313HD3 140

12269 06/25/2020 5,000,000.00 4,998,450.00 4,990,473.61 0.190 361 06/21/2021

313313HD3 140

12309 08/13/2020 2,500,000.00 2,426,850.00 2,496,461.11 0.140 364 08/12/2021

313313KH0 192

12316 08/19/2020 10,000,000.00 9,995,600.00 9,986,891.67 0.130 363 08/17/2021

313385KN52 197

12318 08/20/2020 2,500,000.00 2,498,900.00 2,496,722.92 0.130 363 08/18/2021

313313KP2 198

12376 11/03/2020 5,000,000.00 4,997,550.00 4,994,420.83 0.130 309 09/08/2021

313313LL0 219

12364 10/19/2020 5,000,000.00 4,997,400.00 4,994,617.36 0.115 337 09/21/2021 313385LZ7 232 61,929,470.28 284 61,909,880.00 62,000,000.00 74,180,430.76

Subtotal and Average 0.127 132

Local Agency Investment Funds

0.576 Local Agency Investment Fund

10090 07/01/2004 74,584,073.99 74,584,073.99 74,584,073.99 0.576 1 SYS10090 1 74,584,073.99 1 74,584,073.99 74,584,073.99 74,820,852.95

Subtotal and Average 0.576 1

Portfolio INVT CC

(18)

YTM 365

Page 4

January 31, 2021

Portfolio Details - Investments

Portfolio Management

City of Santa Monica

Columbia Money Market Fund

0.010 Columbia Money Market Reserves

10091 09/15/2006 0.00 0.00 0.00 0.010 1 SYS10091 1 0.00 0 0.00 0.00 0.00

Local Agency Investment Funds - RDA

1.143 LAIF - Successor Agency

10092 03/17/2009 0.00 0.00 0.00 1.143 1 SYS10092 1 0.00 0 0.00 0.00 0.00

Corporate Bonds 1.863 Starbucks Corp 11899 06/30/2017 3,084,000.00 3,084,339.24 3,109,257.96 2.100 1,315 02/04/2021 855244AJ8 3 1.812 Walt Disney Company

12123 08/19/2019 3,000,000.00 3,001,710.00 3,021,300.00 2.300 543 02/12/2021

25468PDJ2 11

0.363 Johnson & Johnson

12245 06/01/2020 1,830,000.00 1,831,939.80 1,847,622.90 1.650 273 03/01/2021

478160BS2 28

0.214 Toyota Motor Credit Corp

12319 08/24/2020 4,000,000.00 4,012,760.00 4,041,920.00 1.900 227 04/08/2021 89236TCZ6 66 0.151 Apple Inc. 12307 08/14/2020 2,000,000.00 2,014,260.00 2,039,240.00 2.850 265 05/06/2021 037833AR1 94 1.419 HERSHEY COMPANY 12234 04/07/2020 2,000,000.00 2,016,720.00 2,036,740.00 3.100 403 05/15/2021 427866BA5 103 1.884 Google 11884 05/08/2017 4,800,000.00 4,847,952.00 5,122,896.00 3.625 1,472 05/19/2021 02079KAA5 107 1.628 Apple Inc. 11806 09/14/2016 2,000,000.00 2,011,960.00 1,992,720.00 1.550 1,785 08/04/2021 037833CC2 184 0.203 IBM CREDIT, LLC 12381 11/30/2020 3,513,000.00 3,611,926.08 3,632,160.96 3.600 365 11/30/2021 44932HAM5 302 2.019 Johnson & Johnson

11826 12/05/2016 4,000,000.00 4,081,480.00 4,081,640.00 2.450 1,826 12/05/2021 478160BN3 307 0.201 Target Corp. 12343 09/11/2020 3,000,000.00 3,076,170.00 3,108,660.00 2.900 491 01/15/2022 87612EAZ9 348 0.643 Local Initiatives Support

12380 11/19/2020 1,000,000.00 1,022,100.00 1,036,640.83 3.005 467 03/01/2022 539565AE1 393 0.305 IBM Corp 12325 08/27/2020 3,000,000.00 3,099,870.00 3,130,170.00 2.850 624 05/13/2022 459200JX0 466 0.249 BRISTOL-MYERS SQUIBB CO 12344 09/11/2020 3,000,000.00 3,089,460.00 3,118,200.00 2.600 612 05/16/2022 110122CL0 469 2.284 Home Depot Inc.

11952 11/20/2017 2,000,000.00 2,059,200.00 2,029,218.00 2.625 1,654 06/01/2022 437076BG6 485 2.293 Starbucks Corp 11901 07/14/2017 3,000,000.00 3,081,120.00 3,056,508.00 2.700 1,797 06/15/2022 855244AG4 499 2.194 Starbucks Corp 11902 07/17/2017 2,000,000.00 2,054,080.00 2,046,826.92 2.700 1,794 06/15/2022 855244AG4 499 2.131 Pepsi Bottling 12102 07/29/2019 4,189,000.00 4,343,029.53 4,305,035.30 3.100 1,084 07/17/2022 713448CX4 531 0.205 Apple Inc. 12391 12/11/2020 1,825,000.00 1,867,175.75 1,880,407.00 1.700 639 09/11/2022 037833DL1 587 1.700 Toyota Motor Credit Corp

12200 01/28/2020 2,000,000.00 2,091,600.00 2,057,350.68 2.700 1,079 01/11/2023 89236TEL5 709 0.267 Merck 12365 10/22/2020 2,995,000.00 3,166,104.35 3,189,315.60 2.800 938 05/18/2023 58933YAF2 836 1.902 KIMBERLY-CLARK CORP 12115 08/08/2019 2,000,000.00 2,094,780.00 2,036,440.00 2.400 1,393 06/01/2023 494368BJ1 850 0.342 Pfizer Inc 12361 10/16/2020 2,000,000.00 2,121,740.00 2,140,840.00 3.000 972 06/15/2023 717081DH3 864 0.199 Pfizer Inc 12403 01/07/2021 4,000,000.00 4,243,480.00 4,279,773.33 3.000 889 06/15/2023 717081DH3 864 0.349 American Honda Finance

12413 01/26/2021 2,000,000.00 2,021,440.00 2,026,543.61 0.875 892 07/07/2023

02665WDK4 886

0.506 Bank of New York Mellon

12292 07/30/2020 3,000,000.00 3,132,630.00 3,153,300.00 2.200 1,112 08/16/2023

06406FAD5 926

0.368 Bank of New York Mellon

12386 12/07/2020 3,000,000.00 3,006,180.00 2,998,380.00 0.350 1,095 12/07/2023

06406RAP2 1,039

0.345 J PAUL GETTY TRUST

12416 01/28/2021 2,000,000.00 1,999,520.00 2,002,660.00 0.391 1,068 01/01/2024 374288AB4 1,064 0.855 BLACKROCK INC 12241 05/18/2020 1,438,000.00 1,575,142.06 1,581,124.14 3.500 1,400 03/18/2024 09247XAL5 1,141 0.675 Yale University 12275 07/02/2020 1,945,000.00 1,970,732.35 1,963,069.05 0.873 1,748 04/15/2025 98459LAA1 1,534 Portfolio INVT CC Run Date: 02/10/2021 - 17:09

18

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YTM 365

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January 31, 2021

Portfolio Details - Investments

Portfolio Management

City of Santa Monica

Days to Maturity Term CUSIP Investment # Purchase Date Corporate Bonds 0.544 Apple Inc. 12415 01/26/2021 1,000,000.00 1,022,460.00 1,026,943.75 1.125 1,566 05/11/2025 037833DT4 1,560 0.428 Google 12302 08/07/2020 4,000,000.00 3,980,360.00 4,004,380.00 0.450 1,834 08/15/2025 02079KAH0 1,656 0.524 Johnson & Johnson

12414 01/26/2021 2,000,000.00 1,998,000.00 2,007,013.89 0.550 1,679 09/01/2025

478160CN2 1,673

12394 12/22/2020 5,000,000.00 4,964,050.00 5,000,083.33 0.600 1,826 12/22/2025

89236THT5 1,785

0.963 Local Initiatives Support

12411 01/28/2021 1,000,000.00 1,000,680.00 1,000,000.00 0.950 1,813 01/15/2026

53961LAF6 1,809

12409 01/20/2021 3,000,000.00 2,990,640.00 3,000,000.00 0.700 1,826 01/20/2026 89236THY4 1,814 98,104,381.25 1,139 97,586,791.16 95,619,000.00 90,119,080.46

Commercial Paper Disc. -At Cost

0.206 Salvation Army 12311 08/14/2020 5,000,000.00 4,999,352.73 4,994,194.44 0.200 209 03/11/2021 79583RQB8 38 0.206 Salvation Army 12412 01/22/2021 2,500,000.00 2,497,178.24 2,496,708.33 0.200 237 09/16/2021 79583RWG0 227 7,490,902.77 218 7,496,530.97 7,500,000.00 5,799,584.22

Supranationals

0.340 Inter-American Develop Bank

12378 11/12/2020 3,000,000.00 3,001,080.00 3,000,000.00 0.340 1,433 10/15/2024

45818WCW4 1,352

1.750 International Finance Corp.

12156 11/08/2019 4,000,000.00 4,000,000.00 4,000,000.00 1.750 1,834 11/15/2024

45950VNG7 1,383

12195 01/27/2020 2,000,000.00 2,018,040.00 2,000,000.00 1.625 1,815 01/15/2025

45950VNR3 1,444

12305 08/28/2020 5,000,000.00 4,988,200.00 5,000,000.00 0.250 1,813 08/15/2025

45950VNZ5 1,656

12323 09/04/2020 4,000,000.00 3,978,000.00 4,000,000.00 0.200 1,837 09/15/2025

45950VPA8 1,687

12355 10/19/2020 2,000,000.00 1,992,800.00 2,000,000.00 0.250 1,822 10/15/2025

45950VPD2 1,717

12358 10/19/2020 1,594,000.00 1,588,261.60 1,594,000.00 0.250 1,822 10/15/2025

45950VPD2 1,717

12368 10/30/2020 2,000,000.00 1,987,560.00 1,999,000.00 0.250 1,811 10/15/2025 45950VPE0 1,717 23,593,000.00 1,774 23,553,941.60 23,594,000.00 28,496,225.81

Subtotal and Average 0.643 1,573

Municipal Bonds 1.300 State of California 12229 03/27/2020 2,000,000.00 2,004,320.00 2,004,000.00 1.500 370 04/01/2021 13063CP8 59 1.301 State of California 12230 04/02/2020 3,000,000.00 3,006,480.00 3,005,910.00 1.500 364 04/01/2021 13063CP8 59 1.896 CA ST HLTH FACS FING AUTH REV

12177 11/25/2019 1,000,000.00 1,005,480.00 1,000,000.00 1.896 554 06/01/2021

13032UUY2 120

0.281 COUNTY OF LOS ANGELES

12277 07/10/2020 2,500,000.00 2,540,450.00 2,590,150.00 4.000 355 06/30/2021

544657HX0 149

2.913 San Francisco BART

12037 12/10/2018 2,000,000.00 2,018,420.00 1,974,220.00 2.387 934 07/01/2021 797669XU7 150 1.650 HAWAII STATE 12126 08/22/2019 3,500,000.00 3,532,900.00 3,497,795.00 1.620 771 10/01/2021 419792NG7 242 0.698 Ventura County 12247 06/11/2020 1,000,000.00 1,001,960.00 1,000,000.00 0.698 508 11/01/2021 923078CR8 273 0.299 CALIFORNIA ST DEPT OF WATER

12297 08/06/2020 250,000.00 250,192.50 250,000.00 0.299 482 12/01/2021 13067WQY1 303 1.679 State of California 12155 10/28/2019 2,000,000.00 2,044,220.00 2,015,700.00 2.000 916 05/01/2022 13066YTZ2 454 1.893 CA ST HLTH FACS FING AUTH REV

12169 11/25/2019 1,000,000.00 1,021,190.00 1,000,000.00 1.893 919 06/01/2022 13032UUZ9 485 1.450 City of Riverside CA 12249 06/11/2020 300,000.00 304,284.00 301,719.00 1.746 720 06/01/2022 769036BJ2 485 0.445 CALIFORNIA EARTHQUAKE AUTH

12404 01/08/2021 500,000.00 507,180.00 506,629.01 1.327 539 07/01/2022 13017HAJ5 515 0.250 State of California 12371 11/03/2020 3,000,000.00 3,140,040.00 3,164,010.00 3.000 728 11/01/2022 13063DYU6 638 Portfolio INVT CC Run Date: 02/10/2021 - 17:09

19

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YTM 365

Page 6

January 31, 2021

Portfolio Details - Investments

Portfolio Management

City of Santa Monica

Days to Maturity Term CUSIP Investment # Purchase Date Municipal Bonds 0.349 CALIFORNIA ST DEPT OF WATER

12298 08/06/2020 300,000.00 300,861.00 300,000.00 0.349 847 12/01/2022 13067WQZ8 668 1.971 University of California 12139 09/23/2019 2,000,000.00 2,094,860.00 2,038,300.00 2.519 1,330 05/15/2023 91412G2U8 833 0.628 University of California 12281 07/16/2020 500,000.00 503,255.00 500,000.00 0.628 1,033 05/15/2023 91412HFK4 833 2.044 BEVERLY HILLS CA PUBLIC FIN AU

12104 08/08/2019 1,390,000.00 1,443,515.00 1,390,000.00 2.045 1,393 06/01/2023

088006JL6 850

1.970 CA ST HLTH FACS FING AUTH REV

12167 11/25/2019 1,000,000.00 1,036,760.00 1,000,000.00 1.970 1,284 06/01/2023 13032UVA3 850 1.600 City of Riverside CA 12250 06/11/2020 500,000.00 511,725.00 504,375.00 1.903 1,085 06/01/2023 769036BK9 850 0.500 ANAHEIM SCHOOL DIST

12366 10/20/2020 900,000.00 975,969.00 990,075.38 3.825 1,015 08/01/2023

03254CGG9 911

0.475 CALIFORNIA STATE UNIVERSITY

12328 09/17/2020 1,850,000.00 1,856,826.50 1,850,000.00 0.475 1,140 11/01/2023 13077DNB4 1,003 1.375 State of Connecticut GO 12226 03/12/2020 2,000,000.00 2,157,940.00 2,142,340.00 3.130 1,404 01/15/2024 20772KAF6 1,078 1.344 State of Connecticut GO 12227 03/11/2020 2,000,000.00 2,157,940.00 2,144,580.00 3.130 1,405 01/15/2024 20772KAF6 1,078 0.502 TX A&M UNIV 12286 07/30/2020 2,050,000.00 2,069,803.00 2,056,826.50 0.591 1,385 05/15/2024 88213APX7 1,199 0.833 University of California 12282 07/16/2020 500,000.00 507,300.00 500,000.00 0.833 1,399 05/15/2024 91412HFL2 1,199 2.124 BEVERLY HILLS CA PUBLIC FIN AU

12103 08/08/2019 1,000,000.00 1,049,880.00 1,000,000.00 2.125 1,759 06/01/2024

088006JM4 1,216

2.020 CA ST HLTH FACS FING AUTH REV

12168 11/25/2019 1,000,000.00 1,049,810.00 1,000,000.00 2.020 1,650 06/01/2024 13032UVB1 1,216 0.400 METRO-B 12330 09/02/2020 3,000,000.00 3,080,400.00 3,085,800.00 1.170 1,368 06/01/2024 59163PLB7 1,216 0.750 Reedy Creek FL Impt Dist

12284 07/15/2020 2,600,000.00 2,687,152.00 2,691,130.00 1.669 1,417 06/01/2024

758449RV6 1,216

0.660 SAN JOSE REDEVELOPMENT AGENCY

12349 09/21/2020 2,000,000.00 2,167,520.00 2,183,136.67 2.958 1,410 08/01/2024

798170AG1 1,277

0.452 CITY OF LOS ANGELES

12353 10/01/2020 3,145,000.00 3,466,827.85 3,503,456.62 3.320 1,431 09/01/2024

544351MQ9 1,308

0.685 CALIFORNIA STATE UNIVERSITY

12329 09/17/2020 1,500,000.00 1,511,085.00 1,500,000.00 0.685 1,506 11/01/2024

13077DNC2 1,369

0.650 NEW YORK CITY

12312 08/17/2020 500,000.00 543,075.00 546,646.11 2.750 1,629 02/01/2025 64971WTA8 1,461 0.503 City of Suffolk VA 12335 09/15/2020 2,000,000.00 2,008,140.00 2,006,640.00 0.580 1,600 02/01/2025 86481ABB9 1,461 0.933 University of California 12280 07/16/2020 500,000.00 510,550.00 500,000.00 0.933 1,764 05/15/2025 91412HFM0 1,564 0.510 HAWAII STATE 12306 08/14/2020 1,000,000.00 1,004,170.00 1,007,867.22 0.670 1,813 08/01/2025 419792YQ3 1,642 0.748 HAWAII STATE 12375 10/29/2020 1,870,000.00 1,894,141.70 1,879,368.70 0.852 1,798 10/01/2025 419792ZM1 1,703 58,630,675.21 1,125 58,966,622.55 57,155,000.00 58,516,275.11

961

605,583,866.86 595,122,073.99 598,989,299.17 599,390,484.39 0.576 767 Total and Average

Portfolio INVT CC

(21)

YTM 365

Page 7

Stated Rate Market Value

January 31, 2021

Portfolio Details - Cash

Portfolio Management

City of Santa Monica

Days to Maturity Term CUSIP Investment # Purchase Date 0.00 961 605,583,866.86 595,122,073.99 0.576 767 0 0 Average Balance 598,989,299.17 599,390,484.39 Total Cash and Investments

Portfolio INVT CC

(22)

Page 1

Stated

Rate TransactionDate

January 1, 2021 through January 31, 2021

Activity By Type

Balance

Portfolio Management

City of Santa Monica

CUSIP Investment # Issuer

Purchases

or Deposits or WithdrawalsRedemptions

Federal Farm Credit Bank

12408 0.230 01/19/2021 1,999,760.00 0.00 3133EMNG3

Federal Home Loan Bank

12196 1.500 01/27/2021 0.00 3,498,145.00 3130AHY98

12406 0.700 01/28/2021 2,000,000.00 0.00 3130AKQX7

12417 0.300 01/29/2021 2,000,000.00 0.00 3130AKTT3

Fed Home Loan Mortgage Corp

12185 1.920 01/06/2021 0.00 2,000,000.00 3134GUF21

Fed Home Loan Mortgage Corp

12293 0.450 01/29/2021 0.00 2,500,031.25 3134GWFZ4

Farmer Mac

12396 0.300 01/05/2021 2,500,000.00 0.00 31422B5K2

Federal National Mort Assoc

12401 0.640 01/06/2021 2,006,200.00 0.00 3135G06Q1

Federal National Mort Assoc

12402 0.250 01/15/2021 2,000,000.00 0.00 3135GAC90

7,998,176.25 272,125,279.44

Subtotal 12,505,960.00

Federal Agency Discount

12289 0.110 01/26/2021 0.00 4,997,158.33 313385BB1

12295 0.110 01/28/2021 0.00 9,994,438.89 313385BD7

12400 0.080 01/04/2021 4,999,677.78 0.00 313385BJ4

14,991,597.22 61,929,470.28

Subtotal 4,999,677.78

Local Agency Investment Funds (Monthly Summary)

Local Agency Investment Fund

10090 0.576 118,560.88 500,000.00 SYS10090

500,000.00 74,584,073.99

Subtotal 118,560.88

Columbia Money Market Fund (Monthly Summary)

0.00 Subtotal

Local Agency Investment Funds - RDA (Monthly Summary)

0.00 Subtotal

Corporate Bonds

American Honda Finance

12413 0.875 01/26/2021 2,025,620.00 0.00 02665WDK4

Apple Inc.

12415 1.125 01/26/2021 1,024,600.00 0.00 037833DT4

Johnson & Johnson

12414 0.550 01/26/2021 2,002,400.00 0.00 478160CN2

J PAUL GETTY TRUST

12416 0.391 01/28/2021 2,002,660.00 0.00 374288AB4

Local Initiatives Support

12411 0.950 01/28/2021 1,000,000.00 0.00 53961LAF6 Merck 12252 3.875 01/15/2021 0.00 3,037,800.00 58933YAA3 Pfizer Inc 12403 3.000 01/07/2021 4,272,440.00 0.00 717081DH3

Toyota Motor Credit Corp

12409 0.700 01/20/2021 3,000,000.00 0.00 89236THY4 3,037,800.00 98,104,381.25 Subtotal 15,327,720.00 Portfolio INVT CC Run Date: 05/05/2021 - 16:01 PM (PRF_PM3) 7.3.0 Report Ver. 7.3.6.1

22

(23)

Page 2

Stated

Rate TransactionDate

January 1, 2021 through January 31, 2021

Activity By Type

Balance

Portfolio Management

City of Santa Monica

CUSIP Investment # Issuer

Purchases

or Deposits or WithdrawalsRedemptions

Commercial Paper Disc. -At Cost

Salvation Army 12412 0.200 01/22/2021 2,496,708.33 0.00 79583RWG0 0.00 7,490,902.77 Subtotal 2,496,708.33 Supranationals

IBRD (World Bank)

12150 1.700 01/25/2021 0.00 2,000,000.00 45905U4P6

IBRD (World Bank)

12199 1.750 01/27/2021 0.00 4,000,000.00 45905U5U4

6,000,000.00 23,593,000.00

Subtotal 0.00

Municipal Bonds

CALIFORNIA EARTHQUAKE AUTH

12404 1.327 01/08/2021 506,500.00 0.00 13017HAJ5

CALIFORNIA EARTHQUAKE AUTH

12405 1.477 01/08/2021 2,931,877.20 0.00 13017HAK2 0.00 61,563,376.66 Subtotal 3,438,377.20 599,390,484.39 Total 38,887,004.19 32,527,573.47 Portfolio INVT CC Run Date: 05/05/2021 - 16:01

23

PM (PRF_PM3) 7.3.0

(24)

City

of

Santa

Monica Monthly Cash and Investment Report

24 January 31, 2021

Maturity Distribution

The weighted average days-to-maturity (WAM) of the portfolio as of

January 31, 2021 is 767 days (2.1 years). This calculation is for invested

funds only and does not reflect the City’s primary liquidity funds being held

in cash in the City’s general bank account. Approximately 53.5% of the

portfolio is currently held in maturities of 2 years or less (including cash

and LAIF balances).

As noted earlier, interest rates continue to hover near record lows and are

likely to remain at relatively low levels for an extended time as world

economies struggle to recover from the impact of the coronavirus

pandemic. City revenue losses may have an impact on the portfolio’s

maturity distribution as the City liquidity needs change.

Unrealized Gains/Losses

The Governmental Accounting Standards Board Statement No. 31 (GASB

31) requires public agencies to report all investments, with certain

exceptions, at current fair market value rather than at the original purchase

price. Current fair market value is defined in GASB 31 as “the amount at

which a financial instrument could be exchanged in a current transaction

between willing parties, other than in a forced or liquidation state.”

The current fair market value and unrealized gain/loss of a security do not

affect its redemption value or yield if held to maturity. There is an inverse

relationship between the price of the bond and the market interest rate.

The City’s practice is to purchase most securities with the intent to hold

them to maturity. However, due to market conditions in the July-October

time period, the City was able to sell a number of bonds and recognize

gains thus eliminating the unrealized gain. Book values are exclusive of

interest realized to date on investments. Also, the book value shown is the

purchase price and is exclusive of any amortization of premiums or accretion of discounts. As of January 31, 2021, the

$0

$50

$100

$150

$200

$250

Cash

LAIF

0 - 1

Year

Years

1 - 2

Years

2 - 3

Years

3 - 4

Years

4+

Millions

_{Maturity Distribution}

0 - 1 Year 20.5% 1 - 2 Years 12.7% 2 - 3 Years 17.7% 3 - 4 Years 12.0% 4+ Years 16.8% Cash 9.0% LAIF 11.3%

Portfolio Maturities

(25)

City

of

Santa

Monica Monthly Cash and Investment Report

25 January 31, 2021

market value and the book value of the City’s pooled investments (excluding cash) are:

598,989,299.17

$

Market Value

599,390,484.39

$

Book Value

(401,185.22)

$

Unrealized Gain/(Loss)

Compliance

California State law and the City’s Investment Policy set certain legal standards for allowable investments that can be

included in the City’s portfolio. Additionally, there are certain maximum limits for classes of investments, as well as minimum

credit quality requirements. In testing for compliance, the City considers all funds under its direct control and invested

directly by the City. Bond and loan proceeds, as well as the Cemetery and Mausoleum Perpetual Care Funds are excluded.

The following tables summarize portfolio compliance as of January 31, 2021. All investments were in compliance with State

law and the City’s Investment Policy at the time of purchase. State law requires that any investment subject to a credit

downgrade subsequent to the time of purchase shall be reviewed for possible sale within a reasonable amount of time after

the downgrade. The City’s investment portfolio includes some bonds that have been downgraded since purchase. In all

cases, staff believes that the underlying financial strength of the companies is adequate to recommend holding the bonds

at this time. However, given that the economic impact of the pandemic has moved the economy into a severe downtown,

staff will continue to monitor and analyze the status of all these companies and may recommend (on a case-by-case basis)

selling some bonds should the situation indicate disposal of the bond is in the best long-term financial interest of the City.

The swift and enormous drop in interest rates has provided a unique opportunity to sell some of the bonds at net gains even

after taking into account reinvestment at lower rates. These downgrades are discussed in further detail below:

 The portfolio holds two Starbucks bonds (book value of $8,212,592.88 or about 1.4% of total invested funds) that

were downgraded by S&P from A to A- in November 2017 and further downgraded to BBB+ in June 2018. Staff

reviewed the reason for the most recent downgrade as well as analyzed the financial status of the company over the

remaining life of the bonds. The remaining maturity life of all bonds are within 18 months and the estimated probability

of default of the bonds is very low (less than 0.1%). Staff concluded that holding the bonds is the appropriate course

of action at this time. Staff will continue to monitor the status of Starbucks.

 The portfolio holds one bond issued by The Walt Disney Company with a book value of $3,021,300.00 or about 0.5%

of total invested funds. The bond was rated A by Standard and Poor’s (S&P) at the time of purchase but was

(26)

City

of

Santa

Monica Monthly Cash and Investment Report

26 January 31, 2021

downgraded to A- in April 2020, and again to BBB+ in November 2020. At the time of the most recent downgrade,

the bond only had two months remaining term, so there was essentially no risk of default, and the decision was made

to hold the bond to maturity. As of the date of this report, the bond has matured.

 The portfolio holds one Pfizer Inc bond (book value of $6,420,613.33 or about 1.1% of total invested funds) that was

downgraded by S&P from AA- to A+ in November 2020. The bond has a very low default risk (less than 0.1%), and

the City would likely realize a loss if the bond were sold. The bond will continue to be held at this time.

 The portfolio holds four bonds issued by Toyota Motor Credit Corp with a book value of $14,099,354.01 (about 2.4%

of total invested funds). One of the bonds was rated AA- by S&P at the time of purchase but was downgraded to A+

in May 2020. The net market value of the bonds is about $40,300 less than the book value. The default risk ranges

from about 0.2% for bonds with shorter maturities to about 6% for a five-year maturity bond. While the default risk

for the longer-term bond is little higher than optimal, it still is relatively low, and the bonds will continue to be held at

this time.

(27)

City

of

Santa

Monica Monthly Cash and Investment Report

27 January 31, 2021

Further detail regarding City compliance with State law and City investment guidelines is presented as follows:

Standard & Poors/

In Compliance

Fitch

Moodys

(Yes/No)

Best Quality

AAA

Aaa

Yes

AA+

Aa1

Yes

High Quality

AA

Aa2

Yes

AA-

Aa3

Yes

A+

A1

Yes

Upper Medium Grade

A

A2

Yes

A-

A3

Yes

BBB+

Baa1

No

Medium Grade

BBB

Baa2

No

BBB-

Baa3

No

(28)

City

of

Santa

Monica Monthly Cash and Investment Report

28 January 31, 2021

Legal/

In

Pooled %

of

Policy

Compliance

Portfolio (1) (3)

Portfolio

Limit

(Yes/No)

Federal Agency Securities

Federal Home Loan Bank

$37,008,736.81

5.6%

50.0%

Yes

Federal National Mortgage Association

68,508,124.44

10.4%

50.0%

Yes

Federal Home Loan Mortgage Corporation

76,900,000.00

11.7%

50.0%

Yes

Farmer Mac

62,995,500.00

9.6%

50.0%

Yes

HUD Housing - Urban Dev

4,202,731.00

0.6%

50.0%

Yes

Federal Farm Credit Bank

84,439,657.47

12.8%

50.0%

Yes

Total Federal Agency Securities

$334,054,749.72

50.7%

Municipal Bonds

$61,563,376.66

9.4%

n/a

Yes

Corporate Bonds

$98,104,381.25

14.9%

30.0%

Yes

Supranationals

$23,593,000.00

3.6%

30.0%

Yes

Commerical Paper

$7,490,902.77

1.1%

15.0%

Yes

State Local Agency Investment Fund-City

$74,584,073.99

11.3%

$75 million

Yes

Cash (2)

$59,516,842.87

9.0%

None

Yes

Total (Book Value)

$658,907,327.26

100.0%

Notes:

Portfolio Allocation as of 1/31/2021

(2) Does not include balance of HUD depository account ($51,597.94), Successor Agency RPTTF account ($1,768,411.88), Payroll account

($101,525.44) or other cash accounts that are restricted as to use.

(1) Excludes bond proceeds, funds held in trust for others, petty cash accounts, and other funds which are not entirely under City ownership and control.