Information Item. Date: December 31, 2020

(1)

Information Item

1 Date: December 31, 2020

To:

Mayor and City Council

From:

Gigi Decavalles-Hughes, Director of Finance/City Treasurer

Subject:

City Monthly Cash and Investment Report for September 2020

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 September 30, 2020.

Discussion

The September 2020 Cash and Investment Report provides an updated review of the

City’s investment portfolio and cash position. The book value of cash and investments

held in the pooled portfolio increased by $16.8 million in September to $686.4 million. The

increase is primarily due to reimbursements of City Services Building and Fire Station 1

construction costs from bond proceeds, State loan proceeds for the Sustainable Water

Infrastructure Program (SWIP), and a large payment from Metro to BBB. Exclusive of

these large receipts, portfolio balances actually decreased by about $10 million reflecting

the continued pandemic-induced disruption of certain City revenue streams, particularly

Transient Occupancy Taxes and parking-related revenues. The pooled portfolio

yield-to-maturity was down ten basis points to 0.86% in September and is down one hundred

seventeen basis points from one year earlier, continuing to reflect the collapse in interest

rates coinciding with the pandemic-induced economic downturn. Year-to-date investment

earnings on a cash basis is up 66.9% over the same period last fiscal year due to gains

on the sale of bonds. The unprecedented swiftness and size of the rate decline continues

to provide 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 book gain). Exclusive of these gain on sales, year-to-date investment income is

down approximately $1.1 million (30%) from the prior year. The global, state, and local

(2)

2 economies continue to suffer from the on-going level of disruption and uncertainty. While

many areas, including Santa Monica, partially reopened their economies, many areas of

the economy have not reopened completely, many businesses have failed, and the

potential for future disruptions due to virus surges are nearly certain.

In addition to the pooled portfolio, the City’s total cash holdings as of September 30, 2020

included $20.7 million in debt proceeds held in trust with various fiscal agents, primarily

reflecting City Services Building and Downtown Fire Station bond proceeds, $20.2 million

in other funds held in trust, and $27,000 in petty cash/change funds for a total balance of

$727.3 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 September 30, 2020 the City’s portfolio had a total of $30.5 million in green bonds and

$8.3 million in social impact bonds. Approximately 6.4% of total invested funds 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 September

(3)

3 30, 2020 the market value of the City’s portfolio was approximately $1.1 million more than

the book value. While market value of the portfolio continues to exceed the book value,

the size of the unrealized gain has been reduced significantly over the last four months

as the City has realized gains through the strategic sale of certain bonds. The sharp

decline in interest rates during the pandemic provided a unique opportunity for these sales

as market prices of bonds move in an inverse relationship to interest rates.

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

held by the City Treasurer as of September 30, 2020.

Prepared by:

David Carr, Assistant City Treasurer

Attachments:

1 – Investment Highlights

(4)

4 ATTACHMENT 1

Investment Highlights

September 30, 2020



As of September 30, 2020, the book value of the pooled cash and investment

portfolio was $686.4 million, $16.8 million more than in the prior month.



Portfolio value is $77.8 million less than one year ago, primarily reflecting the

revenue losses caused by the COVID pandemic, expenditures for large capital

projects, and the payout of several large legal settlements.



As of September 30, 2020, yield to maturity is 0.86%.



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

seventeen basis points from one year earlier reflecting the record low interest rate

environment.

$450

$500

$550

$600

$650

$700

$750

$800

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Millions

Portfolio Size

Current Year

Prior Year

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Yield to Maturity

(5)

5 

Year-to-date investment earnings (cash basis) are up 66.9% 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 $1.1

million (30%) from the prior year.

Unrealized Gain/(Loss)

($2.0)

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

Jun

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Millions



As of September 30, 2020, the market value of the portfolio continues to exceed

the unamortized value. However, the amount of the unrealized gain has been

reduced significantly the last four months reflecting 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

Investment Report

September 30, 2020

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

September 30, 2020

7 Petty Cash/Change Funds

$27,000.31

Cash Held in General Bank Account

Union Bank (1)

$80,288,882.48

Total Cash Held in General Bank Account

$80,288,882.48

Invested Funds

BNY Mellon Custodial Account

Corporate Bonds

$108,581,803.88

Municipal Bonds

$53,659,229.21

Supranationals

$32,500,000.00

Commercial Paper

$4,994,194.44

Federal Agencies Securities

$331,442,990.81

Total BNY Mellon Custodial Account

$531,178,218.34

State of California Local Agency Investment Fund - City

$74,906,450.81

Total Invested Funds

$606,084,669.15

Total Pooled Cash and Invested Funds

$686,373,551.63

Restricted Cash/Investments Held in Trust/Debt Proceeds

Union Bank-Earthquake Recovery Redevelopment 2006

Tax Allocation Refunding Bonds Series A & B

$88.28

Union Bank-Civic Center Parking Project 2015 Lease Revenue Bonds

$3.52

Union Bank-RDA 2011 Tax Allocation Bonds

$2,262,461.39

BNY-2011 Parking Structure Series A & B

$118.25

BNY-2017 City Services Building PFA

$10,025,302.81

BNY-2018 Fire Station 1 PFA

$8,394,131.31

BNY-Public Safety Facility Bonds 2009 Refunding

$23,681.31

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

$0.21

Total Restricted Cash/Investments Held in Trust

$20,705,787.08

Other Restricted Funds/Funds Held in Trust

Cemetery Perpetual Care Fund (3)

$13,665,795.68

Mausoleum Perpetual Care Fund (3)

$1,658,055.70

Union Bank - Santa Monica Redevelopment Successor Agency RPTTF

$3,046,184.63

Union Bank - HUD Depository Account (4)

$1,599,375.96

Union Bank - Payroll Account

$138,049.38

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

$81,774.85

State of California Local Agency Investment Fund - RDA

$868.89

Total Other Funds Held in Trust

$20,190,105.09

(8)

City of Santa Monica

Cash Receipts, Disbursements and Cash Balances

September 30, 2020

8 (1)

This is the actual general bank account balance as of 9/30/20. 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 - August 31, 2020

$

669,571,930.20

Receipts - Union Bank

$

61,772,853.20

Disbursements - Union Bank

$

(44,971,231.77)

Cash and Investments - September 30, 2020

$

686,373,551.63

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 September 30, 2020

Overview

As of September 30, 2020, total City cash and investments (including cash held for the Successor Agency to the

Redevelopment Agency) were $727.3 million, a $6.1 million increase from the prior month. The pooled portfolio increased

by $6.8 million is September primarily due to reimbursements from bond proceeds of City Services Building (CSB) and Fire

Station 1 (FS1) construction costs, State loan proceeds for the Sustainable Water Infrastructure Program (SWIP), and a

large payment from Metro to BBB. Exclusive of these large receipts, portfolio balances actually decreased by about $10

million reflecting the continued pandemic-induced disruption of certain City revenue streams, particularly Transient

Occupancy Taxes and parking-related revenues. Restricted Cash/Investments held in Trust decreased by $10.5 million

reflecting the drawdown of CSB and FS1 bond proceeds noted above. Total cash and investments are categorized as

follows:

Petty Cash/Change Funds

$

27,000.31

Pooled Cash and Investments

$

686,373,551.63

Restricted Cash/Investment Held in Trust

$

20,705,787.08

Other Funds Held in Trust

$

20,190,105.09

Total

$

727,296,444.11

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.

(10)

City

of

Santa

Monica Monthly Cash and Investment Report

10 September 30, 2020



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.



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 September 30, 2020, the portfolio size (unamortized book value/purchase price) of City pooled cash and investments

was $686.4 million, $16.8 million more than in the prior month. As noted above, excluding bond/loan draw downs, the

portfolio actually decreased by approximately $10 million reflecting the continuing disruption of City revenue streams due

to the pandemic. 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. Twenty-seven investments were made during the month ($84.8 million), three investments matured ($13.5 million),

seven investments were called ($22.5 million), and no investments were sold. The month-end balance of cash held in the

City’s general bank account is about $32.0 million less than in the prior month.

(11)

City

of

Santa

Monica Monthly Cash and Investment Report

11 September 30, 2020

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 (48.3%). The remaining 51.7% includes

Corporate Medium Term Notes (15.8%), State Local Agency

Investment Fund [City LAIF account] (10.9%), Supranationals

(4.8%), Cash (11.7%), Commercial Paper (0.7%), and Municipal

Bonds (7.8%). 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 and

investment strategy.

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 September

30, 2020 the City’s portfolio had a total of $30.5 million in green bonds and $8.3 million in social impact bonds representing

approximately 6.4% of total invested funds. 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 16.1% _Callable Agencies 32.2% Cash 11.7% Corporates 15.8% LAIF City 10.9% Comm'l Paper 0.7% Municipal Bonds 7.8% Supranationals 4.8%

Portfolio Composition

(12)

City

of

Santa

Monica Monthly Cash and Investment Report

12 September 30, 2020

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

Sep-20

Aug-20

(13)

City

of

Santa

Monica Monthly Cash and Investment Report

13 September 30, 2020

No rebalancing actions occurred during the month.

Portfolio Yield

September benchmark interest rates remained near record low levels. The month-end two-year Constant Maturing Treasury

security yield (CMT) did rise two basis points to 0.16% from the record low July level. The rate is still 142 basis points below

the 2019 year-end level, and the five-year rate has shown a similar pattern. The two-year rate is now 271 basis points less

than its eleven year high reached in October 2018. The

twelve-month moving average fell 42 basis points to

0.43%. The portfolio yield-to-maturity fell by ten basis

points to 0.86%. Rates are forecast to remain at or near

record low levels for an extended period as world

economies attempt to recover 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 1.55% in September. The LAIF

month-end rate fell nine basis points to 0.69%. 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. This allowance is not included in the yield-to-maturity calculation.

0.0%

0.4%

0.8%

1.2%

1.6%

2.0%

2.4%

2.8%

Apr

May

Jun

Jul

Aug

Sep

Portfolio Yield

(14)

City

of

Santa

Monica Monthly Cash and Investment Report

14 September 30, 2020

The Federal Reserve Open Market Committee left the benchmark target Fed Funds rate at a range of 0 to 0.25% at its

September meeting. The economy is highly dependent on the course of the coronavirus pandemic and the continuing

public health crisis, and the Fed indicated rates will stay in the same range to achieve maximum employment and a 2%

long-term inflation rate. The unemployment rate did fall for the fifth consecutive month in September to 7.9% as certain

areas of the economy continued to recover. However, an expected surge of the virus in the Fall and Winter could reverse

this trend. Gross domestic product (GDP) did expand at a record annualized rate of 33.1% in the third quarter after

contracting 31.7% the previous two quarters. However, total economic output is still below the peak level of 4

th

_quarter

2019 and is not expected to return to that level until late 2021 or early 2022. The stock market, as measured by the Dow

Jones Industrial Average decreased 2.1% in September after five consecutive months of increase, but still remains 49%

above the recent low in March.

The City’s portfolio yield-to-maturity continues to decline as interest rates have plunged to record low levels and is expected

to continue to remain near current levels for the foreseeable future. As a result, most callable investments are being called

and therefore reinvested at the lower rate. Net investment income on a cash basis in September was $0.5 million, and

year-to-date earnings were up 66.9% 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 $1.1 million (30%) from the prior year.

(15)

YTM 365

Page 1

Par Value Book Value

Maturity Date Stated Rate Market Value

September 30, 2020

Portfolio Details - Investments

Average Balance Issuer

Portfolio Management

City of Santa Monica

Days to Maturity Term CUSIP Investment # Purchase Date

Federal Agency Coupon

0.157 Federal Home Loan Bank

12264 06/19/2020 10,000,000.00 10,000,000.00 10,000,508.33 0.150 105 10/02/2020

3130AJNZ8 1

2.003 Federal National Mort Assoc

12100 07/26/2019 1,000,000.00 1,001,540.00 999,950.00 2.000 462 10/30/2020

3136G0FJ5 29

1.625 Federal Farm Credit Bank

12162 11/13/2019 3,000,000.00 3,005,370.00 3,000,000.00 1.625 366 11/13/2020

3133EK6Z4 43

11879 05/24/2017 2,500,000.00 2,506,100.00 2,500,000.00 1.750 1,280 11/24/2020

3130ABBY1 54

12182 12/23/2019 3,000,000.00 3,010,080.00 3,000,000.00 1.600 366 12/23/2020

3133ELEP5 83

12196 01/27/2020 3,500,000.00 3,515,925.00 3,498,145.00 1.500 366 01/27/2021

3130AHY98 118

12251 06/09/2020 3,000,000.00 2,999,490.00 2,998,724.42 0.125 339 05/14/2021

3133ELZH0 225

12260 06/23/2020 4,000,000.00 4,000,040.00 4,000,000.00 0.210 365 06/23/2021

3133ELN67 265

12145 10/04/2019 4,000,000.00 4,052,720.00 4,031,280.00 1.875 642 07/07/2021

3130AGLD5 279

11772 07/14/2016 1,000,000.00 1,007,900.00 996,270.00 1.125 1,826 07/14/2021

3130A8QS5 286

11796 08/24/2016 3,000,000.00 3,050,670.00 3,000,000.00 2.000 1,826 08/24/2021 3130A93A7 327 0.160 Farmer Mac 12348 09/28/2020 5,000,000.00 4,998,400.00 5,000,000.00 0.160 365 09/28/2021 31422BV98 362 3.000 Federal Home Loan Bank

12025 10/26/2018 2,000,000.00 1,988,060.00 2,000,000.00 3.000 1,096 10/26/2021

3130AF2A4 390

12337 09/09/2020 3,000,000.00 2,999,580.00 3,000,000.00 0.140 456 12/09/2021

3133EL6P4 434

12188 12/30/2019 1,800,000.00 1,805,724.00 1,800,000.00 1.650 731 12/30/2021

3133ELFX7 455

12189 12/30/2019 1,800,000.00 1,805,724.00 1,800,000.00 1.650 731 12/30/2021

3133ELFX7 455

12313 08/24/2020 4,000,000.00 3,999,240.00 4,000,000.00 0.170 549 02/24/2022

3133EL4M3 511

11876 04/27/2017 1,000,000.00 1,033,320.00 1,000,000.00 2.300 1,826 04/27/2022

3130ABAD8 573

0.300 Fed Home Loan Mortgage Corp

12240 05/05/2020 4,000,000.00 4,001,400.00 4,000,000.00 0.300 730 05/05/2022

3134GVRJ9 581

12259 06/22/2020 2,000,000.00 2,003,480.00 1,999,800.00 0.260 730 06/22/2022

3133ELN26 629

12271 06/30/2020 4,000,000.00 4,003,360.00 4,000,000.00 0.300 730 06/30/2022

3134GV2M9 637

12279 07/13/2020 3,000,000.00 3,001,890.00 2,997,990.00 0.200 730 07/13/2022 3133ELT95 650 0.270 Farmer Mac 12283 07/22/2020 10,000,000.00 10,000,200.00 10,000,000.00 0.270 730 07/22/2022 31422BK33 659 0.200 Fed Home Loan Mortgage Corp

12315 08/19/2020 4,000,000.00 3,998,640.00 4,000,000.00 0.200 730 08/19/2022 3134GWPQ3 687 0.240 Farmer Mac 12327 09/08/2020 5,000,000.00 4,998,600.00 5,000,000.00 0.240 730 09/08/2022 31422BT26 707 0.600 Fed Home Loan Mortgage Corp

12236 04/17/2020 2,000,000.00 2,000,000.00 2,000,000.00 0.600 910 10/14/2022

3134GVLA4 743

12237 04/24/2020 2,500,000.00 2,500,275.00 2,500,000.00 0.550 910 10/21/2022

3134GVLP1 750

12153 10/28/2019 2,500,000.00 2,502,250.00 2,500,000.00 1.800 1,096 10/28/2022

3135G0W74 757

12324 08/26/2020 3,000,000.00 2,999,490.00 3,000,145.83 0.250 814 11/18/2022

3134GWQC3 778

12272 06/29/2020 2,000,000.00 2,000,020.00 2,000,000.00 0.350 913 12/29/2022

3134GV2R8 819

12314 08/24/2020 3,000,000.00 2,999,430.00 3,000,000.00 0.300 914 02/24/2023

3134GWRS7 876

12235 04/20/2020 2,000,000.00 2,000,320.00 2,000,000.00 0.750 1,095 04/20/2023

3134GVJZ2 931

12238 04/24/2020 2,500,000.00 2,500,625.00 2,503,258.33 0.750 1,091 04/20/2023

3135G03D3 931

12334 09/09/2020 4,000,000.00 4,000,240.00 4,000,000.00 0.270 1,003 06/09/2023

3134GWJ56 981

12258 06/23/2020 3,000,000.00 3,002,550.00 3,000,000.00 0.430 1,095 06/23/2023

3134GVR75 995

12285 07/20/2020 3,000,000.00 3,002,460.00 3,000,000.00 0.410 1,095 07/20/2023 3134GWAK2 1,022 0.400 Farmer Mac 12290 07/27/2020 5,000,000.00 5,000,050.00 5,000,000.00 0.400 1,095 07/27/2023 31422BK82 1,029 0.300 Federal National Mort Assoc

12296 08/03/2020 2,000,000.00 1,995,520.00 2,000,000.00 0.300 1,095 08/03/2023 3135G05P4 1,036 Portfolio INVT CC Run Date: 12/29/2020 - 13:35 _{PM (PRF_PM2) 7.3.0} Report Ver. 7.3.6.1

15

(16)

YTM 365

Page 2

September 30, 2020

Portfolio Details - Investments

Portfolio Management

City of Santa Monica

0.375 Farmer Mac

12317 08/24/2020 6,000,000.00 5,992,860.00 5,995,500.00 0.350 1,095 08/24/2023

31422BQ86 1,057

12320 08/25/2020 3,000,000.00 2,997,900.00 3,000,000.00 0.345 1,095 08/25/2023

3136G4Y80 1,058

12322 08/28/2020 3,000,000.00 2,996,850.00 3,000,000.00 0.330 1,095 08/28/2023

3136G42B8 1,061

12333 09/08/2020 3,000,000.00 2,998,260.00 3,000,000.00 0.300 1,095 09/08/2023

3134GWJ49 1,072

12336 09/10/2020 3,000,000.00 2,998,290.00 3,000,000.00 0.290 1,093 09/08/2023 3134GWL53 1,072 0.260 Farmer Mac 12350 09/29/2020 3,000,000.00 3,000,000.00 3,000,000.00 0.260 1,095 09/29/2023 31422BW97 1,093 1.750 Farmer Mac 12179 12/20/2019 2,000,000.00 2,036,140.00 2,000,000.00 1.750 1,461 12/20/2023 31422BQR4 1,175 0.300 Fed Home Loan Mortgage Corp

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

3134GWXB7 1,184

12288 07/23/2020 2,000,000.00 2,000,120.00 1,998,886.11 0.470 1,278 01/22/2024

3133ELX25 1,208

12293 07/30/2020 2,500,000.00 2,498,750.00 2,500,031.25 0.450 1,278 01/29/2024

3134GWFZ4 1,215

12291 07/30/2020 2,000,000.00 1,997,260.00 2,000,000.00 0.450 1,279 01/30/2024

3136G4E90 1,216

12214 02/26/2020 2,500,000.00 2,510,675.00 2,500,000.00 1.600 1,461 02/26/2024

3134GVCP1 1,243

12224 03/12/2020 2,500,000.00 2,505,550.00 2,500,000.00 1.050 1,461 03/12/2024

3133ELSL9 1,258

12347 09/28/2020 4,000,000.00 3,997,640.00 4,000,000.00 0.320 1,277 03/28/2024

3136G43W1 1,274

12243 06/03/2020 2,000,000.00 2,001,440.00 2,000,000.00 0.500 1,461 06/03/2024 3134GVYX0 1,341 1.900 Farmer Mac 12148 10/15/2019 5,000,000.00 5,003,450.00 5,000,000.00 1.900 1,735 07/15/2024 31422BMV9 1,383 0.450 Federal Home Loan Bank

12321 08/27/2020 4,000,000.00 3,995,440.00 4,000,000.00 0.450 1,461 08/27/2024

3130AJZH5 1,426

12340 09/10/2020 3,000,000.00 2,998,080.00 3,000,000.00 0.430 1,461 09/10/2024

3133EL6V1 1,440

12339 09/10/2020 2,000,000.00 1,999,700.00 2,000,000.00 0.400 1,461 09/10/2024

3134GWL79 1,440

12341 09/10/2020 3,000,000.00 2,999,550.00 3,000,000.00 0.400 1,461 09/10/2024

3134GWL79 1,440

12342 09/16/2020 4,000,000.00 3,995,360.00 4,000,000.00 0.400 1,461 09/16/2024

3136G43H4 1,446

12345 09/23/2020 3,000,000.00 2,998,380.00 3,000,000.00 0.375 1,461 09/23/2024

3134GWR81 1,453

12140 09/27/2019 2,000,000.00 2,025,360.00 2,000,000.00 1.890 1,827 09/27/2024 3133EKU20 1,457 1.900 Farmer Mac 12146 10/15/2019 5,000,000.00 5,003,450.00 5,000,000.00 1.900 1,827 10/15/2024 31422BMR8 1,475 1.800 Federal National Mort Assoc

12202 01/30/2020 2,500,000.00 2,501,625.00 2,500,000.00 1.800 1,735 10/30/2024

3136G4UD3 1,490

12180 12/16/2019 2,400,000.00 2,424,384.00 2,400,000.00 1.830 1,827 12/16/2024

3134GUC99 1,537

12185 01/06/2020 2,000,000.00 2,007,760.00 2,000,000.00 1.920 1,827 01/06/2025

3134GUF21 1,558

12231 04/09/2020 2,500,000.00 2,500,575.00 2,500,000.00 1.150 1,826 04/09/2025 3133ELWC4 1,651 1.000 Farmer Mac 12239 04/29/2020 4,000,000.00 4,000,640.00 4,000,000.00 1.000 1,826 04/29/2025 31422BZA1 1,671 0.650 Fed Home Loan Mortgage Corp

12256 06/09/2020 2,000,000.00 2,002,120.00 2,000,000.00 0.650 1,826 06/09/2025

3134GVE95 1,712

12254 06/17/2020 2,000,000.00 2,003,060.00 2,000,000.00 0.810 1,826 06/17/2025

3134GVM96 1,720

12253 06/17/2020 3,000,000.00 3,004,620.00 3,000,000.00 0.800 1,826 06/17/2025

3136G4WQ2 1,720

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

3134GWXE1 1,733

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

3136G4XU2 1,733

12278 07/23/2020 4,000,000.00 4,002,680.00 4,000,000.00 0.700 1,826 07/23/2025

3136G4YV9 1,756

12294 07/30/2020 5,000,000.00 4,992,050.00 5,000,000.00 0.600 1,825 07/29/2025

3136G4G23 1,762

12303 08/18/2020 3,000,000.00 2,995,170.00 3,000,000.00 0.500 1,826 08/18/2025

3136G4K85 1,782

12304 08/18/2020 3,000,000.00 2,998,530.00 2,999,400.00 0.500 1,826 08/18/2025

3136G4H71 1,782

Portfolio INVT CC

(17)

YTM 365

Page 3

September 30, 2020

Portfolio Details - Investments

Portfolio Management

City of Santa Monica

12308 08/19/2020 2,000,000.00 1,997,880.00 1,998,000.00 0.450 1,826 08/19/2025

3136G4M34 1,783

12299 08/25/2020 2,000,000.00 1,991,820.00 2,000,000.00 0.700 1,826 08/25/2025

3134GWLM6 1,789

12331 09/02/2020 4,000,000.00 4,001,320.00 4,000,000.00 0.700 1,826 09/02/2025

3134GW3B0 1,797

12338 09/08/2020 5,000,000.00 5,004,050.00 5,000,000.00 0.500 1,826 09/08/2025

3136G42Z5 1,803

12332 09/16/2020 3,000,000.00 2,991,390.00 3,000,000.00 0.520 1,826 09/16/2025 3134GWJ98 1,811 0.570 Farmer Mac 12346 09/17/2020 3,000,000.00 3,003,600.00 3,000,000.00 0.570 1,826 09/17/2025 31422BV23 1,812 257,017,889.27 1,168 257,265,282.00 257,000,000.00 236,201,209.27

Subtotal and Average 0.701 1,020

Federal Agency Discount

12270 06/25/2020 5,000,000.00 4,999,950.00 4,998,140.28 0.130 103 10/06/2020

313384J67 5

12273 06/25/2020 5,000,000.00 4,999,950.00 4,998,140.28 0.130 103 10/06/2020

313384J67 5

12244 05/29/2020 5,000,000.00 4,999,250.00 4,996,900.00 0.120 186 12/01/2020

313384R68 61

12310 08/13/2020 2,500,000.00 2,499,575.00 2,499,180.56 0.100 118 12/09/2020

313312S68 69

12289 07/24/2020 5,000,000.00 4,998,550.00 4,997,158.33 0.110 186 01/26/2021

313385BB1 117

12295 07/30/2020 10,000,000.00 9,997,000.00 9,994,438.89 0.110 182 01/28/2021

313385BD7 119

12246 06/01/2020 4,000,000.00 3,998,320.00 3,994,500.00 0.180 275 03/03/2021

313313CP1 153

12255 06/06/2020 3,000,000.00 2,998,560.00 2,995,680.00 0.178 291 03/24/2021

313313DL9 174

12301 08/05/2020 5,000,000.00 4,995,800.00 4,994,850.00 0.120 309 06/10/2021

313313GS1 252

12326 08/26/2020 5,000,000.00 4,996,100.00 4,995,116.67 0.120 293 06/15/2021

313313GX0 257

12268 06/24/2020 5,000,000.00 4,996,000.00 4,990,447.22 0.190 362 06/21/2021

313313HD3 263

12269 06/25/2020 5,000,000.00 4,996,000.00 4,990,473.61 0.190 361 06/21/2021

313313HD3 263

12309 08/13/2020 2,500,000.00 2,476,600.00 2,496,461.11 0.140 364 08/12/2021

313313KH0 315

12316 08/19/2020 10,000,000.00 9,989,300.00 9,986,891.67 0.130 363 08/17/2021

313385KN52 320

12318 08/20/2020 2,500,000.00 2,497,325.00 2,496,722.92 0.130 363 08/18/2021 313313KP2 321 74,425,101.54 256 74,438,280.00 74,500,000.00 75,174,838.52

Subtotal and Average 0.130 180

Local Agency Investment Funds

0.685 Local Agency Investment Fund

10090 07/01/2004 74,906,450.81 74,906,450.81 74,906,450.81 0.685 1 SYS10090 1 74,906,450.81 1 74,906,450.81 74,906,450.81 74,906,450.81

Subtotal and Average 0.685 1

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

Portfolio INVT CC

(18)

YTM 365

Page 4

September 30, 2020

Portfolio Details - Investments

Portfolio Management

City of Santa Monica

Days to Maturity Term CUSIP Investment # Purchase Date Corporate Bonds 2.024 Microsoft 11661 11/10/2015 2,500,000.00 2,500,125.00 2,497,150.00 2.000 1,820 11/03/2020 594918BG8 33 0.185 Johnson & Johnson

12276 07/02/2020 4,000,000.00 4,007,720.00 4,036,346.67 1.950 131 11/10/2020 478160CH5 40 1.750 Coca Cola 11694 02/22/2016 4,000,000.00 4,013,800.00 4,253,040.00 3.150 1,728 11/15/2020 191216AR1 45 1.748 VISA INC 12191 01/14/2020 3,000,000.00 3,006,600.00 3,012,270.00 2.200 335 12/14/2020 92826CAB8 74 5.366 Merck 12252 06/10/2020 3,000,000.00 3,007,680.00 3,037,800.00 3.875 219 01/15/2021 58933YAA3 106 1.863 Starbucks Corp 11899 06/30/2017 3,084,000.00 3,098,371.44 3,109,257.96 2.100 1,315 02/04/2021 855244AJ8 126 1.812 Walt Disney Company

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

25468PDJ2 134

0.363 Johnson & Johnson

12245 06/01/2020 1,830,000.00 1,839,058.50 1,847,622.90 1.650 273 03/01/2021

478160BS2 151

0.214 Toyota Motor Credit Corp

12319 08/24/2020 4,000,000.00 4,033,480.00 4,070,631.11 1.900 227 04/08/2021 89236TCZ6 189 3.108 Apple Inc. 12032 11/05/2018 3,000,000.00 3,044,700.00 2,981,490.00 2.850 913 05/06/2021 037833AR1 217 0.151 Apple Inc. 12307 08/14/2020 2,000,000.00 2,029,800.00 2,054,756.67 2.850 265 05/06/2021 037833AR1 217 1.419 HERSHEY COMPANY 12234 04/07/2020 2,000,000.00 2,037,440.00 2,036,740.00 3.100 403 05/15/2021 427866BA5 226 1.884 Google 11884 05/08/2017 4,800,000.00 4,903,392.00 5,122,896.00 3.625 1,472 05/19/2021 02079KAA5 230 1.629 Pfizer Inc 12147 10/10/2019 2,000,000.00 2,024,480.00 2,010,380.00 1.950 602 06/03/2021 717081DX8 245 0.217 Pfizer Inc 12257 06/12/2020 2,000,000.00 2,024,480.00 2,034,715.00 1.950 356 06/03/2021 717081DX8 245 0.172 Pfizer Inc 12287 07/24/2020 4,000,000.00 4,048,960.00 4,072,010.00 1.950 314 06/03/2021 717081DX8 245 2.386 Toyota Motor Credit Corp

11961 01/25/2018 1,434,000.00 1,408,202.34 1,427,704.74 2.250 1,229 06/07/2021 89236TEH4 249 3.002 Oracle 12002 07/05/2018 3,000,000.00 3,057,900.00 2,982,720.00 2.800 1,099 07/08/2021 68389XBA2 280 1.628 Apple Inc. 11806 09/14/2016 2,000,000.00 2,019,220.00 1,992,720.00 1.550 1,785 08/04/2021 037833CC2 307 2.206 Oracle 11842 01/09/2017 2,500,000.00 2,535,625.00 2,449,037.50 1.900 1,710 09/15/2021 68389XBK0 349 2.000 Cisco Systems 11873 04/21/2017 4,000,000.00 4,057,400.00 3,974,746.20 1.850 1,613 09/20/2021 17275RBJ0 354 2.019 Johnson & Johnson

11826 12/05/2016 4,000,000.00 4,106,880.00 4,081,640.00 2.450 1,826 12/05/2021 478160BN3 430 0.201 Target Corp. 12343 09/11/2020 3,000,000.00 3,103,950.00 3,122,193.33 2.900 491 01/15/2022 87612EAZ9 471 1.736 Colgate Palmolive 12113 08/08/2019 1,800,000.00 1,856,106.00 1,827,000.00 2.300 999 05/03/2022 19416QDZ0 579 0.305 IBM Corp 12325 08/27/2020 3,000,000.00 3,123,450.00 3,154,870.00 2.850 624 05/13/2022 459200JX0 589 0.249 BRISTOL-MYERS SQUIBB CO 12344 09/11/2020 3,000,000.00 3,112,350.00 3,143,116.67 2.600 612 05/16/2022 110122CL0 592 2.284 Home Depot Inc.

11952 11/20/2017 2,000,000.00 2,076,480.00 2,029,218.00 2.625 1,654 06/01/2022 437076BG6 608 2.293 Starbucks Corp 11901 07/14/2017 3,000,000.00 3,097,650.00 3,056,508.00 2.700 1,797 06/15/2022 855244AG4 622 2.194 Starbucks Corp 11902 07/17/2017 2,000,000.00 2,065,100.00 2,046,826.92 2.700 1,794 06/15/2022 855244AG4 622 2.131 Pepsi Bottling 12102 07/29/2019 4,189,000.00 4,382,657.47 4,305,035.30 3.100 1,084 07/17/2022 713448CX4 654 1.700 Toyota Motor Credit Corp

12200 01/28/2020 2,000,000.00 2,098,020.00 2,057,350.68 2.700 1,079 01/11/2023 89236TEL5 832 1.902 KIMBERLY-CLARK CORP 12115 08/08/2019 2,000,000.00 2,106,160.00 2,036,440.00 2.400 1,393 06/01/2023 494368BJ1 973 0.506 Bank of New York Mellon

12292 07/30/2020 3,000,000.00 3,146,490.00 3,153,300.00 2.200 1,112 08/16/2023 06406FAD5 1,049 0.855 BLACKROCK INC 12241 05/18/2020 1,438,000.00 1,584,690.38 1,581,124.14 3.500 1,400 03/18/2024 09247XAL5 1,264 1.864 Walt Disney Company

12135 09/09/2019 3,000,000.00 3,123,180.00 2,983,830.00 1.750 1,817 08/30/2024

254687FK7 1,429

1.700 Toyota Motor Credit Corp

12216 02/25/2020 2,000,000.00 2,089,540.00 2,009,482.22 1.800 1,815 02/13/2025 89236TGT6 1,596 0.675 Yale University 12275 07/02/2020 1,945,000.00 1,959,684.75 1,964,153.87 0.873 1,748 04/15/2025 98459LAA1 1,657 0.428 Google 12302 08/07/2020 4,000,000.00 3,987,640.00 4,004,380.00 0.450 1,834 08/15/2025 02079KAH0 1,779 Portfolio INVT CC Run Date: 12/29/2020 - 13:35

18

_{PM (PRF_PM2) 7.3.0}

(19)

YTM 365

Page 5

September 30, 2020

Portfolio Details - Investments

Portfolio Management

City of Santa Monica

Days to Maturity Term CUSIP Investment # Purchase Date 108,581,803.88 1,085 108,739,762.88 106,520,000.00 109,593,987.40

Commercial Paper Disc. -At Cost

0.206 Salvation Army 12311 08/14/2020 5,000,000.00 4,995,635.00 4,994,194.44 0.200 209 03/11/2021 79583RQB8 161 4,994,194.44 209 4,995,635.00 5,000,000.00 4,994,194.44

Supranationals

1.750 IBRD (World Bank)

12199 01/27/2020 4,000,000.00 4,016,600.00 4,000,000.00 1.750 1,096 01/27/2023

45905U5U4 848

12150 10/25/2019 2,000,000.00 2,089,180.00 2,000,000.00 1.700 1,461 10/25/2023

45905U4P6 1,119

2.669 International Finance Corp.

12034 11/15/2018 4,000,000.00 4,012,440.00 4,000,000.00 3.000 1,826 11/15/2023

45950VMP8 1,140

12036 12/17/2018 2,500,000.00 2,513,000.00 2,500,000.00 3.000 1,824 12/15/2023

45950VMW3 1,170

12165 11/21/2019 2,000,000.00 2,003,400.00 2,000,000.00 2.050 1,819 11/13/2024

459058HP1 1,504

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

45950VNG7 1,506

12186 12/30/2019 3,000,000.00 3,009,570.00 3,000,000.00 1.700 1,812 12/15/2024

45905U4Z4 1,536

12195 01/27/2020 2,000,000.00 2,027,840.00 2,000,000.00 1.625 1,815 01/15/2025

45950VNR3 1,567

12305 08/28/2020 5,000,000.00 4,999,800.00 5,000,000.00 0.250 1,813 08/15/2025

45950VNZ5 1,779

12323 09/04/2020 4,000,000.00 3,991,200.00 4,000,000.00 0.200 1,837 09/15/2025 45950VPA8 1,810 32,500,000.00 1,711 32,663,030.00 32,500,000.00 34,300,000.00

Subtotal and Average 1.541 1,416

Municipal Bonds 0.598 Ventura County 12248 06/11/2020 750,000.00 750,105.00 750,000.00 0.598 143 11/01/2020 923078CQ0 31 1.300 State of California 12229 03/27/2020 2,000,000.00 2,011,220.00 2,004,000.00 1.500 370 04/01/2021 13063CP8 182 1.301 State of California 12230 04/02/2020 3,000,000.00 3,016,830.00 3,006,035.00 1.500 364 04/01/2021 13063CP8 182 1.896 CA ST HLTH FACS FING AUTH REV

12177 11/25/2019 1,000,000.00 1,008,680.00 1,000,000.00 1.896 554 06/01/2021

13032UUY2 243

0.281 COUNTY OF LOS ANGELES

12277 07/10/2020 2,500,000.00 2,571,075.00 2,590,150.00 4.000 355 06/30/2021

544657HX0 272

2.913 San Francisco BART

12037 12/10/2018 2,000,000.00 2,028,640.00 1,974,220.00 2.387 934 07/01/2021 797669XU7 273 1.650 HAWAII STATE 12126 08/22/2019 3,500,000.00 3,477,215.00 3,497,795.00 1.620 771 10/01/2021 419792NG7 365 0.698 Ventura County 12247 06/11/2020 1,000,000.00 1,002,520.00 1,000,000.00 0.698 508 11/01/2021 923078CR8 396 0.299 CALIFORNIA ST DEPT OF WATER

12297 08/06/2020 250,000.00 250,157.50 250,000.00 0.299 482 12/01/2021

13067WQY1 426

2.333 California Statewide Communiti

11885 05/09/2017 3,000,000.00 3,086,820.00 3,004,770.00 2.367 1,788 04/01/2022 13063DAD0 547 1.679 State of California 12155 10/28/2019 2,000,000.00 2,053,700.00 2,015,700.00 2.000 916 05/01/2022 13066YTZ2 577 1.893 CA ST HLTH FACS FING AUTH REV

12169 11/25/2019 1,000,000.00 1,020,760.00 1,000,000.00 1.893 919 06/01/2022 13032UUZ9 608 1.450 City of Riverside CA 12249 06/11/2020 300,000.00 304,797.00 301,719.00 1.746 720 06/01/2022 769036BJ2 608 2.630 SAN JOSE REDEVELOPMENT AGENCY

11954 12/21/2017 1,300,000.00 1,353,820.00 1,300,000.00 2.630 1,684 08/01/2022

798170AE6 669

0.349 CALIFORNIA ST DEPT OF WATER

12298 08/06/2020 300,000.00 300,357.00 300,000.00 0.349 847 12/01/2022 13067WQZ8 791 1.971 University of California 12139 09/23/2019 2,000,000.00 2,096,100.00 2,038,300.00 2.519 1,330 05/15/2023 91412G2U8 956 0.628 University of California 12281 07/16/2020 500,000.00 502,110.00 500,000.00 0.628 1,033 05/15/2023 91412HFK4 956 2.044 BEVERLY HILLS CA PUBLIC FIN AU

12104 08/08/2019 1,390,000.00 1,446,864.90 1,390,000.00 2.045 1,393 06/01/2023

088006JL6 973

1.970 CA ST HLTH FACS FING AUTH REV

12167 11/25/2019 1,000,000.00 1,033,000.00 1,000,000.00 1.970 1,284 06/01/2023 13032UVA3 973 1.600 City of Riverside CA 12250 06/11/2020 500,000.00 512,010.00 504,375.00 1.903 1,085 06/01/2023 769036BK9 973 Portfolio INVT CC Run Date: 12/29/2020 - 13:35

19

_{PM (PRF_PM2) 7.3.0}

(20)

YTM 365

Page 6

September 30, 2020

Portfolio Details - Investments

Portfolio Management

City of Santa Monica

Days to Maturity Term CUSIP Investment # Purchase Date Municipal Bonds 0.475 CALIFORNIA STATE UNIVERSITY

12328 09/17/2020 1,850,000.00 1,850,758.50 1,850,000.00 0.475 1,140 11/01/2023 13077DNB4 1,126 1.375 State of Connecticut GO 12226 03/12/2020 2,000,000.00 2,150,800.00 2,142,340.00 3.130 1,404 01/15/2024 20772KAF6 1,201 1.344 State of Connecticut GO 12227 03/11/2020 2,000,000.00 2,150,800.00 2,144,580.00 3.130 1,405 01/15/2024 20772KAF6 1,201 0.502 TX A&M UNIV 12286 07/30/2020 2,050,000.00 2,062,894.50 2,056,826.50 0.591 1,385 05/15/2024 88213APX7 1,322 0.833 University of California 12282 07/16/2020 500,000.00 504,600.00 500,000.00 0.833 1,399 05/15/2024 91412HFL2 1,322 2.124 BEVERLY HILLS CA PUBLIC FIN AU

12103 08/08/2019 1,000,000.00 1,050,050.00 1,000,000.00 2.125 1,759 06/01/2024

088006JM4 1,339

2.020 CA ST HLTH FACS FING AUTH REV

12168 11/25/2019 1,000,000.00 1,041,460.00 1,000,000.00 2.020 1,650 06/01/2024 13032UVB1 1,339 0.400 METRO-B 12330 09/02/2020 3,000,000.00 3,081,960.00 3,097,695.00 1.170 1,368 06/01/2024 59163PLB7 1,339 0.750 Reedy Creek FL Impt Dist

12284 07/15/2020 2,600,000.00 2,691,182.00 2,696,433.71 1.669 1,417 06/01/2024

758449RV6 1,339

0.660 SAN JOSE REDEVELOPMENT AGENCY

12349 09/21/2020 2,000,000.00 2,177,000.00 2,183,136.67 2.958 1,410 08/01/2024

798170AG1 1,400

0.685 CALIFORNIA STATE UNIVERSITY

12329 09/17/2020 1,500,000.00 1,500,840.00 1,500,000.00 0.685 1,506 11/01/2024

13077DNC2 1,492

0.650 NEW YORK CITY

12312 08/17/2020 500,000.00 541,700.00 546,646.11 2.750 1,629 02/01/2025 64971WTA8 1,584 0.503 City of Suffolk VA 12335 09/15/2020 2,000,000.00 1,998,540.00 2,006,640.00 0.580 1,600 02/01/2025 86481ABB9 1,584 0.933 University of California 12280 07/16/2020 500,000.00 505,580.00 500,000.00 0.933 1,764 05/15/2025 91412HFM0 1,687 0.510 HAWAII STATE 12306 08/14/2020 1,000,000.00 997,470.00 1,007,867.22 0.670 1,813 08/01/2025 419792YQ3 1,765 53,659,229.21 1,149 54,132,416.40 52,790,000.00 49,377,449.60

Subtotal and Average 1.276 879 917

584,548,130.04 603,216,450.81 607,140,857.09 606,084,669.15 0.867 698 Total and Average

Portfolio INVT CC

(21)

YTM 365

Page 7

Par Value Book Value Stated

Rate Market Value

September 30, 2020

Portfolio Details - Cash

Portfolio Management

City of Santa Monica

Days to Maturity Term CUSIP Investment # Purchase Date 0.00 917 584,548,130.04 603,216,450.81 0.867 698 0 0 Average Balance 607,140,857.09 606,084,669.15 Total Cash and Investments

Portfolio INVT CC

(22)

Page 1

Stated Rate

Transaction Date

September 1, 2020 through September 30, 2020

Activity By Type

Balance

Portfolio Management

City of Santa Monica

CUSIP Investment # Issuer

Purchases or Deposits

Redemptions or Withdrawals

Federal Farm Credit Bank

12130 2.000 09/03/2020 0.00 2,000,000.00

3133EKH41

12136 1.850 09/03/2020 0.00 1,999,800.00

3133EKH66

12337 0.140 09/09/2020 3,000,000.00 0.00

3133EL6P4

12340 0.430 09/10/2020 3,000,000.00 0.00

3133EL6V1

Federal Home Loan Bank

12144 1.970 09/11/2020 0.00 4,000,000.00

3130AH2B8

Fed Home Loan Mortgage Corp

11930 1.600 09/28/2020 0.00 2,000,000.00

3134GBF64

12331 0.700 09/02/2020 4,000,000.00 0.00

3134GW3B0

12332 0.520 09/16/2020 3,000,000.00 0.00

3134GWJ98

12333 0.300 09/08/2020 3,000,000.00 0.00

3134GWJ49

12334 0.270 09/09/2020 4,000,000.00 0.00

3134GWJ56

12336 0.290 09/10/2020 3,000,000.00 0.00

3134GWL53

12339 0.400 09/10/2020 2,000,000.00 0.00

3134GWL79

12341 0.400 09/10/2020 3,000,000.00 0.00

3134GWL79

12345 0.375 09/23/2020 3,000,000.00 0.00

3134GWR81

12351 0.500 09/30/2020 2,000,000.00 0.00

3134GWXE1

12352 0.300 09/30/2020 2,000,000.00 0.00 3134GWXB7 Farmer Mac 12131 1.850 09/09/2020 0.00 5,000,000.00 31422BLA6 Farmer Mac 12262 0.350 09/23/2020 0.00 4,000,000.00 31422BF21 Farmer Mac 12263 0.250 09/24/2020 0.00 2,500,000.00 31422BF70 Farmer Mac 12327 0.240 09/08/2020 5,000,000.00 0.00 31422BT26 Farmer Mac 12346 0.570 09/17/2020 3,000,000.00 0.00 31422BV23 Farmer Mac 12348 0.160 09/28/2020 5,000,000.00 0.00 31422BV98 Farmer Mac 12350 0.260 09/29/2020 3,000,000.00 0.00 31422BW97

Federal National Mort Assoc

12338 0.500 09/08/2020 5,000,000.00 0.00

3136G42Z5

12342 0.400 09/16/2020 4,000,000.00 0.00

3136G43H4

12347 0.320 09/28/2020 4,000,000.00 0.00

3136G43W1

21,499,800.00 257,017,889.27 Subtotal 64,000,000.00

Federal Agency Discount

Federal Home Loan Bank

12242 0.125 09/04/2020 0.00 7,497,369.79

313384E62

7,497,369.79 74,425,101.54

Subtotal 0.00

Local Agency Investment Funds (Monthly Summary)

74,906,450.81 Subtotal

Columbia Money Market Fund (Monthly Summary)

0.00 Subtotal Portfolio INVT CC Run Date: 12/29/2020 - 13:35 PM (PRF_PM3) 7.3.0 Report Ver. 7.3.6.1

22

(23)

Page 2

Stated Rate

Transaction Date

September 1, 2020 through September 30, 2020

Activity By Type

Balance

Portfolio Management

City of Santa Monica

CUSIP Investment # Issuer

Purchases or Deposits

Redemptions or Withdrawals

Local Agency Investment Funds - RDA (Monthly Summary)

0.00 Subtotal

Corporate Bonds

American Honda Finance

12300 2.450 09/24/2020 0.00 4,047,933.33 02665WAZ4 BRISTOL-MYERS SQUIBB CO 12344 2.600 09/11/2020 3,118,200.00 0.00 110122CL0 Target Corp. 12343 2.900 09/11/2020 3,108,660.00 0.00 87612EAZ9 4,047,933.33 108,581,803.88 Subtotal 6,226,860.00

Commercial Paper Disc. -At Cost

4,994,194.44 Subtotal

Supranationals

IBRD (World Bank)

12141 2.200 09/23/2020 0.00 3,000,000.00

459058HG1

International Finance Corp.

12323 0.200 09/04/2020 4,000,000.00 0.00

45950VPA8

3,000,000.00 32,500,000.00 Subtotal 4,000,000.00

Municipal Bonds

CALIFORNIA STATE UNIVERSITY

12328 0.475 09/17/2020 1,850,000.00 0.00

13077DNB4

CALIFORNIA STATE UNIVERSITY

12329 0.685 09/17/2020 1,500,000.00 0.00

13077DNC2

METRO-B

12330 1.170 09/02/2020 3,085,800.00 0.00

59163PLB7

SAN JOSE REDEVELOPMENT AGENCY

12349 2.958 09/21/2020 2,174,920.00 0.00 798170AG1 City of Suffolk VA 12335 0.580 09/15/2020 2,006,640.00 0.00 86481ABB9 0.00 53,659,229.21 Subtotal 10,617,360.00 606,084,669.15 Total 84,844,220.00 36,045,103.12 Portfolio INVT CC Run Date: 12/29/2020 - 13:35

23

PM (PRF_PM3) 7.3.0

(24)

City

of

Santa

Monica Monthly Cash and Investment Report

24 September 30, 2020

Maturity Distribution

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

September 31, 2020 is 698 days (1.9 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 63.5% of the

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

and LAIF balances) as the large number of called bonds is resulting in

lower WAM.

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

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

struggle to recover from the impact of the coronavirus pandemic. City

revenue losses will 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, market conditions have resulted in the City

selling a number of bonds and recognizing the gains thus reducing the

unrealized gain amount over the last three months. Book values are

exclusive of interest realized to date on investments

.

Also, the book value

$0

$50

$100

$150

$200

$250

Cash

LAIF

0 - 1

Year

1 - 2

Years

2 - 3

Years

3 - 4

Years

4+

Years

Millions

_{Maturity Distribution}

0 - 1 Year 28.5% 1 - 2 Years 12.4% 2 - 3 Years 10.9% 3 - 4 Years 11.5% 4+ Years 14.1% Cash 11.7% LAIF 10.9%

Portfolio Maturities

(25)

City

of

Santa

Monica Monthly Cash and Investment Report

25 September 30, 2020

shown is the purchase price and is exclusive of any amortization of premiums or accretion of discounts.

As of September

30, 2020, the market value and the book value of the City’s pooled investments (excluding cash) are:

607,140,857.09

$

Market Value

606,084,669.15

$

Book Value

1,056,187.94

$

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 September 30, 2020. 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 one Coca-Cola bond (book value of $4,253,040.00 or about 0.7% of total invested funds) that

was downgraded by S&P from AA to AA- in February 2016 and again to A+ in April 2018. The rating is still considered

a strong rating and the bond matures in mid-November and the City would realize a loss of approximately $240,000

from selling the bond at this time. The bond will continue to be held.



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

(26)