Investment Report for the Quarter Ending June 30, 2022

City of Chandler — Regular Meeting (2022-08-18)

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Investment Performance Review
For the Quarter Ended June 30, 2022
Client Management Team
PFM Asset Management LLC
213 Market Street
Harrisburg, PA 17101-2141
717-232-2723
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
For Institutional Investor or Investment Professional Use Only - This material is not for inspection by, distribution to, or quotation to the general public
CITY OF CHANDLER
HEALTH CARE BENEFITS TRUST
1201 South Alma School Rd.
Suite 3000
Mesa, AZ 85210
415-470-7815
Paulina Woo, Managing Director
Luke Schneider, CFA, Managing Director
Annette Gaston, Senior Managing Consultant

For the Quarter Ended June 30, 2022
Fixed Income Management
QUARTERLY MARKET SUMMARY
Summary
►In Q2, U.S. economic conditions were characterized by: (1) persistently high
inflation; (2) declining consumer sentiment; (3) slowing economic growth and
increasing recession probabilities; (4) more aggressive Federal Reserve (Fed)
monetary policy tightening; (5) rising yields and decade-high mortgage rates; and
(6) elevated volatility and risk-off sentiment in credit and equity markets.
►The first half of 2022 was one of the most difficult investment environments in the
past 40 years due to the pace of interest rate increases and the resulting simultaneous
weakness in both bond and stock market returns. As we enter the second half of the
year, many of the first half’s significant headwinds are still in place: high inflation,
tighter Fed monetary policy, rising rates, wider credit spreads, slowing growth and
lingering geopolitical turmoil.
►The focus of headlines on inflation remains very high, with the Consumer Price
Index increasing 9.1% year-over-year (YoY) through June, the largest 12-month
increase since December 1981. Numerous factors have driven this inflation: gasoline
prices surged nearly 60%, shelter costs rose 5.6%, food was up 10.4%, while new
and used cars rose 9% over that span. Some of these price pressures resulted from
surging input costs for oil, industrial metals and agricultural products, exacerbated by
Russia’s ongoing invasion of Ukraine. But, more recently, many commodity prices have
fallen substantially. For example, lumber, copper, aluminum, steel, cattle and coffee
prices are now down on a year-to-date basis.
►As a result of surging inflation, the Fed lifted the overnight federal funds target rate
three times in the first half of 2022, in March, May and June. The last hike was by
three quarters of a percentage point (0.75%) to a new range of 1.5% to 1.75%, the
largest hike since 1994. The market now expects short-term rates to reach 3.25% to
3.75% by year-end. In addition, the Fed kicked off its plan to reduce its balance sheet
holdings of Treasuries and agency-backed mortgage securities through monthly runoff
of maturities and principal payments.
Economic Snapshot
►U.S. economic real growth (inflation-adjusted) declined at an annual pace of 1.6% in
Q1 2022, a big disappointment. The drop was a sharp reversal from the 6.9% increase
in Q4. It resulted from decreases in exports, federal government spending, private
inventory investment, and state and local government spending, while imports, which
are a subtraction in the calculation of GDP, increased. The economy has downshifted
from its torrid pace of 2021 as federal stimulus programs ended and rampant inflation
cut into consumer spending habits and corporate profits. Economists’ estimates for
future GDP reflect expectations for growth to normalize in the future, with projections
for the full calendar year 2022 at 2.1% and 2023 at 1.5%.
►The U.S. labor market remains a tailwind as the economy added 2.7 million new
jobs this year. The unemployment rate remained at 3.6%, while wage growth remained
elevated and job openings remained plentiful. Despite this apparent strength, job gains
have begun to moderate, and the level of new weekly jobless claims has increased
noticeably, indicating a possible sea change.
►Household spending has also adapted to rising food and energy costs. The share of
disposable income going towards non-discretionary items such as food, energy, debt
service and rent broke a decade-long downtrend and is now rising quickly. Largely due
to pain at the pump and grocery check-out counter, measures of consumer sentiment
nosedived. The Conference Board Consumer Confidence Index dipped below 100 for
the first in over a year, while the University of Michigan Consumer Sentiment Index
reached an all-time low in June.
►Increasing inventories and a falling mortgage affordability index led to a sharp
decline in home sales. Sales of both new and existing homes sales declined. On the
manufacturing front, indices of activity posted a decline and moved toward their lowest
levels in nearly two years, although still in expansionary territory. Automobile sales in
June were down nearly 15% YoY.
Interest Rates
►
U.S. Treasury yields rose sharply in Q2. By the end of the quarter, the yield on a
3-month U.S. Treasury Bill stood at 1.67% (up 1.17% over the quarter), the 2-year note
was 2.96% (up 0.62%), the 5-year note was 3.04% (up 0.58%), the 10-year note was
3.02% (up 0.68%) and the 30-year ended the quarter at 3.19% (up 0.74%).
►As a result of rapidly increasing Treasury yields, fixed income indices posted
large negative total returns. The ICE BofA 2-, 5-, and 10-year U.S. Treasury indices
returned -0.50%, -2.05%, and -4.92%, respectively. Underscoring the recent historic
underperformance of U.S. Treasuries, from peak to trough (August 3, 2020, to June 14,
2022), the 10-year Treasury Index lost -17%.
Sector Performance
►Diversification in securities other than U.S. Treasury securities generally detracted
from performance as few sectors were immune to risk-off sentiment and wider yield
spreads. The exceptions were shorter-duration municipals and federal agency
securities with maturities inside five years.
►Despite relatively stable fundamentals and a favorable upgrade/downgrade ratio,
wider spreads on investment-grade (IG) corporates generated notably negative excess
returns. Quickly tightening financial conditions and an increasing repricing of recession
risks were the primary culprits. After rapidly retracing to close Q1, IG corporatespreads
slowly and steadily increased throughout Q2, finishing at their widest level in two years.
For the second consecutive quarter, lower quality and longer duration corporates
underperformed their higher quality and shorter duration counterparts.
►Like corporates, AAA-rated asset-backed securities fundamentals remain strong,
however growing economic growth concerns pushed spreads wider over the quarter.
Historically, spreads in the sector remain elevated and appear attractive. The result
of wider spreads was negative excess returns from the sector regardless of type,
although credit card collateral outperformed auto loan-backed issues.
►Mortgage-backed securities (MBS) continued the trend of underperformance,
finishing the worst start to a year in several decades. The looming acceleration of Fed
balance sheet reduction of its MBS holdings has weighed on the sector for the better
part of the year. Refinancing activity has plummeted and MBS durations have extended
noticeably due to decade-high mortgage rates, further pressuring performance in the
sector. Only the highest coupon MBS avoided sharply negative excess returns.
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only
This material is not for inspection by distribution to or quotation to the general public
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Market Summary
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3

For the Quarter Ended June 30, 2022
Fixed Income Management
QUARTERLY MARKET SUMMARY
Economic Snapshot
1. Data as of Fourth Quarter 2021.
2. Data as of First Quarter 2021.
Note: YoY = year-over-year, QoQ = quarter-over-quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil.
Source: Bloomberg.
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only
This material is not for inspection by distribution to or quotation to the general public
Labor Market
Mar '22
Jun '21
Unemployment Rate
Jun'22
3.6%
3.6%
5.9%
Change In Non-Farm Payrolls
Jun'22
372,000
398,000
557,000
Average Hourly Earnings (YoY)
Jun'22
5.1%
5.6%
4.0%
Personal Income (YoY)
May'22
5.3%
-11.4%
3.1%
Initial Jobless Claims (week)
7/2/22
235,000
171,000
405,000
Growth
Real GDP (QoQ SAAR)
2022Q1
-1.6%
6.9%
6.3%
GDP Personal Consumption (QoQ SAAR)
2022Q1
1.8%
2.5%
11.4%
Retail Sales (YoY)
May'22
8.1%
7.1%
19.4%
ISM Manufacturing Survey (month)
Jun'22
53.0
57.1
60.9
Existing Home Sales SAAR (month)
May'22
5.41 mil.
5.75 mil.
5.97 mil.
Inflation / Prices
Personal Consumption Expenditures (YoY)
May'22
6.3%
6.6%
4.0%
Consumer Price Index (YoY)
May'22
8.6%
8.5%
5.4%
Consumer Price Index Core (YoY)
May'22
6.0%
6.5%
4.5%
Crude Oil Futures (WTI, per barrel)
Jun 30
$105.76
$100.28
$73.47
Gold Futures (oz.)
Jun 30
$1,807
$1,949
$1,772
Latest
25-000K
20-000K
15-000K
10-000K
5-000K
0
5,000K
10,000K
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Jun '19 Dec '19 Jun '20 Dec '20 Jun '21 Dec '21 Jun '22
Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right)
Change In Non-Farm Payrolls
Unemployment Rate
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
Mar '19
Sep '19
Mar '20
Sep '20
Mar '21
Sep '21
Mar '22
Real GDP (QoQ)
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
May '19
Nov '19
May '20
Nov '20
May '21
Nov '21
May '22
Consumer Price Index
CPI (YoY)
Core CPI (YoY)
2
2
1
1
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Market Summary
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4

For the Quarter Ended June 30, 2022
Fixed Income Management
QUARTERLY MARKET SUMMARY
Source: Bloomberg.
Interest Rate Overview
U.S. Treasury Note Yields
U.S. Treasury Yield Curve
U.S. Treasury Yields
Yield Curves as of 06/30/2022
Maturity
Jun '22
Mar '22
Change over
Quarter
Jun '21
Change over
Year
3-Month
1.67%
0.50%
1.17%
0.04%
1.63%
1-Year
2.78%
1.61%
1.17%
0.07%
2.71%
2-Year
2.96%
2.34%
0.62%
0.25%
2.71%
5-Year
3.04%
2.46%
0.58%
0.89%
2.15%
10-Year
3.02%
2.34%
0.68%
1.47%
1.55%
30-Year
3.19%
2.45%
0.74%
2.09%
1.10%
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only
This material is not for inspection by distribution to or quotation to the general public
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
6/30/21
9/30/21
12/31/21
3/31/22
6/30/22
Yield
2-Year
5-Year
10-Year
0%
1%
2%
3%
4%
3-mo
1-yr
2-yr
3-yr
5-yr
7-yr
10-yr
20-yr
30-yr
Yield
Maturity
June 30, 2022
March 31, 2022
June 30, 2021
0%
1%
2%
3%
4%
5%
3-mo
1-yr
2-yr
3-yr
5-yr
0
7-yr
10-yr
25-yr
30-yr
Yield
Maturity
U.S. Treasury
Federal Agency
Corporates, A Rated
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Market Summary
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5

For the Quarter Ended June 30, 2022
Fixed Income Management
QUARTERLY MARKET SUMMARY
June 30, 2022
Duration
Yield
3 Month
1 Year
3 Years
1-3 Year Indices
U.S. Treasury
1.85
2.95%
(0.50%)
(3.30%)
0.24%
Federal Agency
1.79
2.95%
(0.58%)
(3.25%)
0.16%
U.S. Corporates, A-AAA rated
1.95
3.70%
(0.91%)
(3.74%)
0.66%
Agency MBS (0 to 3 years)
2.14
3.14%
(0.35%)
(4.43%)
(0.09%)
Taxable Municipals
1.82
3.30%
(0.29%)
(2.64%)
1.78%
1-5 Year Indices
U.S. Treasury
2.58
2.98%
(0.81%)
(4.61%)
0.04%
Federal Agency
2.34
3.00%
(0.90%)
(4.53%)
(0.14%)
U.S. Corporates, A-AAA rated
2.76
3.86%
(1.66%)
(5.82%)
0.39%
Agency MBS (0 to 5 years)
2.98
3.32%
(1.67%)
(5.87%)
(0.55%)
Taxable Municipals
2.66
3.47%
(0.64%)
(4.15%)
0.95%
Master Indices (Maturities 1 Year orGreater)
U.S. Treasury
6.67
3.06%
(3.85%)
(8.91%)
(0.85%)
Federal Agency
3.77
3.12%
(1.98%)
(6.49%)
(0.11%)
U.S. Corporates, A-AAA rated
7.38
4.28%
(6.10%)
(12.90%)
(0.88%)
Agency MBS (0 to 30 years)
6.19
3.66%
(3.91%)
(9.10%)
(1.42%)
Taxable Municipals
9.99
4.40%
(7.05%)
(14.94%)
(0.52%)
As of 06/30/2022
Returns for Periods ended06/30/2022
Returns for periods greater than one year are annualized.
Source: ICE BofAML Indices.
ICE BofAML Index Returns
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only
This material is not for inspection by distribution to or quotation to the general public
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Market Summary
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6

For the Quarter Ended June 30, 2022
Fixed Income Management
QUARTERLY MARKET SUMMARY
Disclosures
PFM Asset Management LLC (“PFMAM”) is an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset
Management, Inc. (“USBAM”). USBAM is a subsidiary of U.S. Bank National Association (“U.S. Bank”). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S.
Bank is not responsible for and does not guarantee the products, services or performance of PFMAM.
The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution and are subject to change.
Information is obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its accuracy,
completeness, or suitability. The information contained in this report is not an offer to purchase or sell any securities.
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
Further distribution is not permitted without prior written consent.
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only
This material is not for inspection by distribution to or quotation to the general public
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Market Summary
© PFM Asset Management LLC pfmam.com
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7

PFM Asset Management LLC
For the Quarter Ended June 30, 2022
MarketUpdate
For the Quarter Ended June 30, 2022
Market Update
© PFM Asset Management LLC | pfmam.com
Fixed-Income Sector Commentary — 2Q 2022
▸U.S. Treasury securities posted negative returns for
more than two quarters. Yields continued to move
higher on surging inflation data and expectations for
aggressive Fed rate hikes over the course of 2022.
▸The Federal Agency sector generated modest
incremental returns over Treasuries in Q2 but
continue to offer narrow yield spreads and limited
value.
▸Supranational spreads are elevated for shorter
maturities but remained historically tight further out
the curve. Issuance has been relatively light year-to-
date which has helped keep downward pressure on
yield spreads.
▸Investment grade Corporates appear to have priced
in a recession on the horizon, however, fundamentals
and ratings are expected to stabilize while also
carrying a low default rate. Yield spreads have been
driven wider to historically attractive levels as
uncertainties persist.
▸Asset-Backed yield spreads widened after a volatile
start to the year. Some measures of collateral
performance are trending worse, but overall are in a
good position from a historical perspective and remain
within rating agency expectations.
▸Mortgage-Backed Securities were hampered by
soaring mortgage rates and the looming reduction to
the Fed’s balance sheet. The sector will likely remain
under pressure for the foreseeable future as it faces a
myriad of headwinds.
▸Taxable Municipals were one of the few investment
grade sectors that performed well during the quarter.
But while issuance has slowed despite appearing at
attractive levels, deals remain heavily oversubscribed,
pressuring spreads lower.
▸Commercial Paper and CD spreads remain elevated
and attractive, particularly on maturities near nine
months which have heightened value and a steeper
curve.
For the Quarter Ended June 30, 2022
Market Update
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9

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Account Summary
|
Account Summary
1. Yield at market, yield on cost, and portfolio duration only include investments held within the separately managed account(s), excludes balances invested in overnight funds.
2. Cash represents funds held in the Allspring Treasury Plus Money Market A Fund.
CHANDLER HEALTH CARE BENEFITS TRUST
Portfolio Values
June 30, 2022
$12,918,056
$13,243,309
$12,918,056
$33,385
PFMAM Managed Account
Amortized Cost
Market Value
Accrued Interest
Cash2
$1,946,674
Analytics¹
June 30, 2022
Yield at Market
2.67%
Yield on Cost
0.82%
Portfolio Duration
1.00
10

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Account Summary
|
<0.1%
13.2%
7.8%
0.6%
30.2%
48.2%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
First American Funds 1 - $10.23
Corporate - $1,709,255
Negotiable CD - $1,009,626
Municipal - $83,687
Federal Agency - $3,909,829
U.S. Treasury - $6,239,044
Portfolio Allocation
Sector Limit for Analysis2
Sector Allocation Analytics
For informational/analytical purposes only and is not provided for compliance assurance. Balances includes accrued interest.
1. Excludes cash held in the Allspring Treasury Plus Money Market A Fund.
2. Sector Limit for Analysis is as derived from our interpretation of your most recent Investment Policy as provided.
11

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Portfolio Summary
|
Ratings shown are calculated by assigning a numeral value to each security rating, then calculating a weighted average rating for each security type / issuer category using all available security ratings,
excluding Not-Rated (NR) ratings. For security type / issuer categories where a rating from the applicable NRSRO is not available, a rating of NR is assigned. Includes accrued interest and excludes balances
invested in overnight funds.
Issuer Diversification
Market Value (%) S&P / Moody's / Fitch
Security Type / Issuer
U.S. Treasury
48.2%
UNITED STATES TREASURY
48.2%
AA / Aaa / AAA
Federal Agency
30.2%
FANNIE MAE
14.6%
AA / Aaa / AAA
FREDDIE MAC
15.6%
AA / Aaa / AAA
Municipal
0.6%
CITY OF SCOTTSDALE
0.6%
AAA / Aaa / AAA
Negotiable CD
7.8%
CREDIT SUISSE GROUP RK
1.1%
A / Aa / A
DNB ASA
1.0%
AA / Aa / NR
NORDEA BANK ABP
1.4%
AA / Aa / AA
SKANDINAVISKA ENSKILDA BANKEN AB
1.5%
A / Aa / AA
SUMITOMO MITSUI FINANCIAL GROUP INC
1.0%
A / Aa / A
UBS AG
1.8%
A / Aa / AA
Corporate
13.2%
ADOBE INC
0.8%
A / A / NR
AMAZON.COM INC
2.0%
AA / A / AA
APPLE INC
0.8%
AA / Aaa / NR
BANK OF AMERICA CO
1.0%
A / A / AA
CATERPILLAR INC
1.0%
A / A / A
HERSHEY COMPANY
1.3%
A / A / NR
JP MORGAN CHASE & CO
1.6%
A / A / AA
THE WALT DISNEY CORPORATION
1.3%
BBB / A / A
TOYOTA MOTOR CORP
1.0%
A / A / A
WAL-MART STORES INC
2.4%
AA / Aa / AA
100.0%
Total
12

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Portfolio Snapshot
|
1. Total market value includes accrued interest as of June 30, 2022.
2. An average of each security’s credit rating was assigned a numeric value and adjusted for its relative weighting in the portfolio.
3. The portfolio’s benchmark is currently the ICE BofAML 1-3 Year U.S Treasury Index. Prior to 3/31/17 it was the ICE BofAML 0-3 Year U.S Treasury Index. Prior to 9/30/12 it was the ICE BofAML 0-6
Month U.S Treasury Index. Source: Bloomberg.
Portfolio Snapshot - CHANDLER HEALTH CARE BENEFITS TRUST¹
Credit Quality - S&P2
55%
32%
13%
7%
55%
38%
0%
20%
40%
60%
0-1 Yr
1-2 Yrs
2-3 Yrs
Portfolio
Benchmark3
Duration Distribution
U.S. Treasury | 48%
Federal Agency | 30%
Corporate | 13%
Negotiable CD | 8%
Municipal | 1%
Sector Allocation
AAA | 1%
AA+ | 79%
AA | 4%
A-1+ | 2%
A+ | 2%
A | 2%
A- | 3%
A-1 | 5%
BBB+ | 1%
Portfolio Statistics
Portfolio Effective Duration
1.00 years
Benchmark Effective Duration
1.78 years
Portfolio Credit Quality
AA
Yield At Market
2.67%
Yield At Cost
0.82%
Total Market Value
$14,898,114.65
$12,918,056.03
Securities Sub-Total
$1,946,673.78
Cash
$33,384.84
Accrued Interest
14

Liquidity Vehicle
Quarter-End Yield
Allspring Treasury Plus Money
Market A Fund1
0.84%
First American Funds2
1.25%
1.
Allspring Treasury Plus Money Market A Fund. Account yield from the Trust custody statement as of 6/30/22.
2.
First American Funds Account yield from statement as of 6/30/22. For U.S. Treasury, Treasury Obligations and Government Obligations – You could lose money by investing in the Fund. Although
the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to
the Fund at any time.
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Portfolio Snapshot
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15

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Portfolio Characteristics
|
$0.0
$3.0
$6.0
$9.0
$12.0
$15.0
Millions
June 2022
$0.0
$3.0
$6.0
$9.0
$12.0
$15.0
Millions
March 2022
$0.0
$3.0
$6.0
$9.0
$12.0
$15.0
Millions
December 2021
$0.0
$3.0
$6.0
$9.0
$12.0
$15.0
Millions
September 2021
Sector Allocation Review - CHANDLER HEALTH CARE BENEFITS TRUST
U.S. Treasury
Federal Agency
Municipal
Negotiable CD
Corporate
Money Market Fund
Market values, excluding accrued interest. Only includes fixed-income securities held within the separately managed account(s) and LGIPs managed by PFMAM. Detail may not add to total due to rounding.
Sep-21
% of Total
Security Type
Dec-21
% of Total
Mar-22
% of Total
% of Total
Jun-22
U.S. Treasury
$7.2
48.4%
$7.2
49.6%
$7.0
50.6%
$6.2
48.1%
Federal Agency
$4.0
27.0%
$4.0
27.7%
$3.9
28.2%
$3.9
30.2%
Municipal
$0.1
0.6%
$0.1
0.6%
$0.1
0.6%
$0.1
0.7%
Negotiable CD
$1.6
10.6%
$1.2
8.4%
$1.0
7.3%
$1.0
7.8%
Corporate
$2.0
13.4%
$2.0
13.7%
$1.8
13.3%
$1.7
13.2%
Money Market Fund
$0.0
0.0%
$0.0
0.0%
$0.0
0.0%
$0.0
0.0%
Total
$14.9
100.0%
$14.4
100.0%
$13.9
100.0%
$12.9
100.0%
16

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CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Portfolio Activity
|
Portfolio Activity - CHANDLER HEALTH CARE BENEFITS TRUST
Net Activity by Sector
($ millions)
U.S. Treasury
Corporate
U.S. Treasury
Corporate
($0.8)
($0.6)
($0.4)
($0.2)
$0.0
Based on total proceeds (principal and accrued interest) of buys, sells, maturities, and principal paydowns. Detail may not add to total due to rounding.
Sector
Net Activity
Corporate
($126,375)
U.S. Treasury
($777,047)
($903,422)
Total Net Activity
Sales/Maturities Purchases
17

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Portfolio Performance
|
The lesser of 10 years or since inception is shown. Since inception returns for periods one year or less are not shown. Performance inception date is December 31, 2010.
1.
Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.
2.
Returns for periods one year or less are presented on a periodic basis. Returns for periods greater than one year are presented on an annualized basis.
3.
The portfolio’s benchmark is currently the ICE BofAML 1-3 Year U.S Treasury Index. Prior to 3/31/17 it was the ICE BofAML 0-3 Year U.S Treasury Index. Prior to 9/30/12 it was the ICE BofAML 0-6 Month
U.S Treasury Index. Source: Bloomberg.
4.
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
Return
Portfolio
Benchmark
Portfolio Performance
Market Value Basis Earnings
3 Months
1 Year
3 Years
5 Years
10 Years¹
Interest Earned²
$39,317
$158,956
$751,642
$1,169,641
$1,526,920
Change in Market Value
($77,206)
($458,839)
($552,310)
($425,171)
($597,491)
($37,889)
Total Dollar Return
($299,883)
$199,332
$744,470
$929,429
Total Return³
Portfolio
-0.25%
-1.85%
0.78%
1.32%
1.04%
Benchmark⁴
-0.50%
-3.30%
0.24%
0.94%
0.72%
3 Months
1 Year
3 Years
5 Years
10 Years
Difference
0.25%
1.45%
0.55%
0.39%
0.31%
18

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Portfolio Performance
|
The lesser of 10 years or since inception is shown. Performance inception date is December 31, 2010.
1.
Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.
2.
Realized gains / (losses) are shown on an amortized cost basis.
3.
Accrual Basis Earnings - CHANDLER HEALTH CARE BENEFITS TRUST
Accrual Basis Earnings
Interest Earned²
Realized Gains / (Losses)³
Change in Amortized Cost
Total Earnings
3 Months
$39,317
-
($9,297)
$30,020
1 Year
$158,956
($1,700)
($33,843)
$123,412
3 Years
$751,642
$207,872
($46,483)
$913,031
5 Year
$1,169,641
$112,252
$24,570
$1,306,463
10 Year¹
$1,526,920
$125,841
($158,206)
$1,494,556
19

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Portfolio Composition
|
Issuer Distribution
As of June 30, 2022
Issuer
Market Value ($)
% of Portfolio
UNITED STATES TREASURY
6,219,522
48.16%
FREDDIE MAC
2,022,073
15.66%
FANNIE MAE
1,883,751
14.58%
WAL-MART STORES INC
304,123
2.35%
AMAZON.COM INC
262,019
2.03%
UBS AG
234,272
1.81%
JP MORGAN CHASE & CO
208,478
1.61%
SKANDINAVISKA ENSKILDA BANKEN AB
189,971
1.47%
NORDEA BANK ABP
184,969
1.43%
THE WALT DISNEY CORPORATION
169,813
1.31%
HERSHEY COMPANY
166,178
1.29%
CREDIT SUISSE GROUP RK
137,274
1.06%
SUMITOMO MITSUI FINANCIAL GROUP INC
134,971
1.04%
CATERPILLAR INC
132,796
1.03%
TOYOTA MOTOR CORP
132,091
1.02%
BANK OF AMERICA CO
128,753
1.00%
DNB ASA
124,653
0.96%
APPLE INC
99,820
0.77%
ADOBE INC
99,118
0.77%
CITY OF SCOTTSDALE
83,413
0.65%
12,918,056
Grand Total
100.00%
20

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Portfolio Holdings
|
Managed Account Detail of Securities Held
Security Type/Description
Dated Date/Coupon/Maturity
CUSIP
Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
U.S. Treasury
US TREASURY NOTES
DTD 08/31/2017 1.625% 08/31/2022
9128282S8
119,000.00
AA+
Aaa
10/1/2019
10/3/2019
119,385.82
1.51
646.33
118,962.81
119,022.14
US TREASURY NOTES
DTD 08/31/2017 1.625% 08/31/2022
9128282S8
750,000.00
AA+
Aaa
9/3/2019
9/5/2019
755,917.97
1.35
4,073.54
749,765.63
750,330.89
US TREASURY NOTES
DTD 11/15/2012 1.625% 11/15/2022
912828TY6
650,000.00
AA+
Aaa
12/2/2019
12/4/2019
649,619.14
1.65
1,349.01
648,375.00
649,951.55
US TREASURY NOTES
DTD 11/30/2015 2.000% 11/30/2022
912828M80
100,000.00
AA+
Aaa
8/1/2019
8/6/2019
100,722.66
1.77
169.40
99,843.75
100,090.63
US TREASURY NOTES
DTD 12/15/2019 1.625% 12/15/2022
912828YW4
520,000.00
AA+
Aaa
1/3/2020
1/7/2020
520,934.38
1.56
369.40
518,050.00
520,145.43
US TREASURY NOTES
DTD 12/31/2015 2.125% 12/31/2022
912828N30
335,000.00
AA+
Aaa
11/1/2019
11/5/2019
340,927.93
1.55
19.34
334,267.19
335,941.68
US TREASURY NOTES
DTD 01/15/2020 1.500% 01/15/2023
912828Z29
320,000.00
AA+
Aaa
2/3/2020
2/5/2020
321,562.50
1.33
2,214.36
318,000.00
320,287.79
US TREASURY NOTES
DTD 02/15/2020 1.375% 02/15/2023
912828Z86
575,000.00
AA+
Aaa
3/2/2020
3/4/2020
584,703.13
0.80
2,970.30
570,417.94
577,061.24
US TREASURY NOTES
DTD 01/15/2021 0.125% 01/15/2024
91282CBE0
770,000.00
AA+
Aaa
2/2/2021
2/4/2021
768,766.80
0.18
444.03
737,034.38
769,354.15
US TREASURY NOTES
DTD 03/15/2021 0.250% 03/15/2024
91282CBR1
100,000.00
AA+
Aaa
3/22/2021
3/23/2021
99,792.97
0.32
73.37
95,453.12
99,881.45
US TREASURY NOTES
DTD 03/31/2017 2.125% 03/31/2024
912828W71
140,000.00
AA+
Aaa
4/16/2021
4/19/2021
147,360.94
0.33
747.82
137,921.87
144,367.35
US TREASURY NOTES
DTD 03/31/2017 2.125% 03/31/2024
912828W71
309,000.00
AA+
Aaa
1/5/2022
1/6/2022
317,497.50
0.88
1,650.53
304,413.26
315,662.46
US TREASURY N/B NOTES
DTD 04/15/2021 0.375% 04/15/2024
91282CBV2
100,000.00
AA+
Aaa
4/22/2021
4/26/2021
100,167.97
0.32
78.89
95,453.12
100,101.25
US TREASURY NOTES
DTD 11/30/2019 1.500% 11/30/2024
912828YV6
935,000.00
AA+
Aaa
6/2/2021
6/4/2021
969,660.74
0.43
1,187.91
901,836.67
959,004.26
21

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity
CUSIP
Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
U.S. Treasury
US TREASURY NOTES
DTD 01/31/2020 1.375% 01/31/2025
912828Z52
615,000.00
AA+
Aaa
5/5/2021
5/7/2021
634,867.38
0.50
3,527.33
589,727.31
628,754.34
6,338,000.00
6,431,887.83
19,521.56
6,219,522.05
Security Type Sub-Total
0.94
6,389,956.61
Negotiable CD
SUMITOMO MITSUI BANK NY CERT
DEPOS
DTD 07/14/2020 0.700% 07/08/2022
86565CKU2
135,000.00
A-1
P-1
7/10/2020
7/14/2020
135,000.00
0.70
451.50
134,970.71
135,000.00
UBS AG STAMFORD CT CERT DEPOS
DTD 02/18/2021 0.250% 08/16/2022
90275DNC0
235,000.00
A-1
P-1
2/16/2021
2/18/2021
235,000.00
0.25
220.31
234,271.50
235,000.00
NORDEA BANK ABP NEW YORK CERT
DEPOS
DTD 08/29/2019 1.850% 08/26/2022
65558TLL7
185,000.00
A-1+
P-1
8/27/2019
8/29/2019
185,000.00
1.84
1,169.35
184,968.92
185,000.00
SKANDINAV ENSKILDA BANK LT CD
DTD 09/03/2019 1.860% 08/26/2022
83050PDR7
190,000.00
A-1
P-1
8/29/2019
9/3/2019
190,000.00
1.85
1,227.08
189,970.93
190,000.00
DNB BANK ASA/NY LT CD
DTD 12/06/2019 2.040% 12/02/2022
23341VZT1
125,000.00
A-1+
P-1
12/5/2019
12/6/2019
125,000.00
2.03
205.42
124,652.88
125,000.00
CREDIT SUISSE NEW YORK CERT
DEPOS
DTD 03/23/2021 0.590% 03/17/2023
22552G3C2
140,000.00
A-1
P-1
3/19/2021
3/23/2021
140,000.00
0.59
243.21
137,274.34
140,000.00
1,010,000.00
1,010,000.00
3,516.87
1,006,109.28
Security Type Sub-Total
1.17
1,010,000.00
Municipal
SCOTTSDALE, AZ TXBL GO BONDS
DTD 12/30/2020 0.608% 07/01/2025
810454BL1
90,000.00
AAA
Aaa
12/10/202
12/30/202
90,000.00
0.61
273.60
83,412.90
90,000.00
90,000.00
90,000.00
273.60
83,412.90
Security Type Sub-Total
0.61
90,000.00
Federal Agency
FREDDIE MAC NOTES
DTD 07/23/2020 0.125% 07/25/2022
3137EAET2
165,000.00
AA+
Aaa
7/21/2020
7/23/2020
164,627.10
0.24
89.38
164,823.95
164,987.77
22

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity
CUSIP
Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Federal Agency
FANNIE MAE NOTES
DTD 09/06/2019 1.375% 09/06/2022
3135G0W33
490,000.00
AA+
Aaa
9/5/2019
9/6/2019
488,294.80
1.49
2,152.26
489,560.47
489,895.76
FREDDIE MAC NOTES
DTD 04/20/2020 0.375% 04/20/2023
3137EAEQ8
265,000.00
AA+
Aaa
4/17/2020
4/20/2020
264,337.50
0.46
195.99
260,099.62
264,822.73
FANNIE MAE NOTES
DTD 05/22/2020 0.250% 05/22/2023
3135G04Q3
250,000.00
AA+
Aaa
5/20/2020
5/22/2020
249,247.50
0.35
67.71
244,404.75
249,776.66
FANNIE MAE NOTES (CALLABLE)
DTD 08/10/2020 0.300% 08/10/2023
3135G05R0
370,000.00
AA+
Aaa
8/11/2020
8/12/2020
369,334.00
0.36
434.75
359,471.28
369,753.22
FANNIE MAE NOTES (CALLABLE)
DTD 08/18/2020 0.360% 08/18/2023
3135G05V1
130,000.00
AA+
Aaa
8/20/2020
8/21/2020
130,000.00
0.36
172.90
126,310.47
130,000.00
FREDDIE MAC NOTES
DTD 08/21/2020 0.250% 08/24/2023
3137EAEV7
165,000.00
AA+
Aaa
8/19/2020
8/21/2020
164,831.70
0.28
145.52
159,996.87
164,935.78
FREDDIE MAC NOTES
DTD 09/04/2020 0.250% 09/08/2023
3137EAEW5
80,000.00
AA+
Aaa
9/2/2020
9/4/2020
80,014.61
0.24
62.78
77,493.44
80,005.77
FREDDIE MAC NOTES
DTD 09/04/2020 0.250% 09/08/2023
3137EAEW5
105,000.00
AA+
Aaa
9/2/2020
9/4/2020
104,965.35
0.26
82.39
101,710.14
104,986.32
FREDDIE MAC NOTES
DTD 10/16/2020 0.125% 10/16/2023
3137EAEY1
250,000.00
AA+
Aaa
10/14/202
10/16/202
249,067.50
0.25
65.10
241,059.50
249,598.05
FREDDIE MAC NOTES
DTD 11/05/2020 0.250% 11/06/2023
3137EAEZ8
600,000.00
AA+
Aaa
11/3/2020
11/5/2020
599,460.00
0.28
229.17
578,544.00
599,757.10
FREDDIE MAC NOTES
DTD 11/05/2020 0.250% 11/06/2023
3137EAEZ8
185,000.00
AA+
Aaa
11/19/2020 11/24/2020
184,863.10
0.28
70.66
178,384.40
184,937.33
FREDDIE MAC NOTES
DTD 11/05/2020 0.250% 11/06/2023
3137EAEZ8
120,000.00
AA+
Aaa
1/19/2021
1/20/2021
120,139.20
0.21
45.83
115,708.80
120,067.28
FANNIE MAE NOTES
DTD 11/25/2020 0.250% 11/27/2023
3135G06H1
455,000.00
AA+
Aaa
1/7/2021
1/8/2021
455,122.85
0.24
107.43
437,857.87
455,059.97
FANNIE MAE NOTES
DTD 11/25/2020 0.250% 11/27/2023
3135G06H1
235,000.00
AA+
Aaa
11/23/2020 11/25/2020
234,732.10
0.29
55.49
226,146.38
234,874.48
FREDDIE MAC NOTES
DTD 12/04/2020 0.250% 12/04/2023
3137EAFA2
150,000.00
AA+
Aaa
12/2/2020
12/4/2020
149,851.50
0.28
28.13
144,252.00
149,929.34
4,015,000.00
4,008,888.81
4,005.49
3,905,823.94
Security Type Sub-Total
0.45
4,013,387.56
23

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity
CUSIP
Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Corporate
WALT DISNEY COMPANY/THE
DTD 09/06/2019 1.650% 09/01/2022
254687FJ0
170,000.00
BBB+
A2
9/4/2019
9/6/2019
169,921.80
1.67
935.00
169,813.00
169,995.56
APPLE INC CORPORATE NOTES
DTD 09/11/2019 1.700% 09/11/2022
037833DL1
100,000.00
AA+
Aaa
9/4/2019
9/11/2019
99,983.00
1.71
519.44
99,820.30
99,998.88
AMAZON.COM INC (CALLABLE) CORP
NOTES
DTD 11/29/2012 2.500% 11/29/2022
023135AJ5
60,000.00
AA
A1
6/9/2020
6/11/2020
62,727.60
0.64
133.33
59,943.66
60,198.92
ADOBE INC CORP NOTE
DTD 02/03/2020 1.700% 02/01/2023
00724PAA7
100,000.00
A+
A2
1/22/2020
2/3/2020
99,863.00
1.75
708.33
99,117.60
99,973.08
CATERPILLAR FINL SERVICE
CORPORATE NOTES
DTD 03/01/2021 0.250% 03/01/2023
14913R2J5
135,000.00
A
A2
2/22/2021
3/1/2021
134,883.90
0.29
112.50
132,796.40
134,961.35
WAL MART STORES INC GLOBAL NT
(CALLABLE)
DTD 04/11/2013 2.550% 04/11/2023
931142DH3
305,000.00
AA
Aa2
5/21/2020
5/26/2020
321,024.70
0.70
1,728.33
304,122.52
308,238.32
HERSHEY COMPANY
DTD 05/10/2018 3.375% 05/15/2023
427866AZ1
165,000.00
A
A1
3/11/2020
3/13/2020
171,405.30
2.10
711.56
166,177.77
166,758.97
AMAZON.COM INC CORPORATE
NOTES
DTD 06/03/2020 0.400% 06/03/2023
023135BP0
100,000.00
AA
A1
6/1/2020
6/3/2020
99,860.00
0.45
31.11
97,502.40
99,956.91
TOYOTA MOTOR CREDIT CORP
CORPORATE NOTES
DTD 05/26/2020 1.350% 08/25/2023
89236THA6
135,000.00
A+
A1
5/20/2020
5/26/2020
134,950.05
1.36
637.88
132,090.75
134,982.31
AMAZON.COM INC CORPORATE
NOTES
DTD 05/12/2021 0.450% 05/12/2024
023135BW5
110,000.00
AA
A1
5/10/2021
5/12/2021
109,839.40
0.50
67.38
104,573.04
109,900.21
JPMORGAN CHASE & CO
CORPORATE NOTES (CAL
DTD 09/16/2020 0.653% 09/16/2024
46647PBS4
105,000.00
A-
A2
9/9/2020
9/16/2020
105,000.00
0.65
199.98
100,906.58
105,000.00
BANK OF AMERICA CORP
(CALLABLE) CORPORAT
DTD 10/21/2020 0.810% 10/24/2024
06051GJH3
135,000.00
A-
A2
10/16/202
10/21/202
135,000.00
0.81
203.51
128,752.61
135,000.00
24

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date
Par ($)
CUSIP
Maturity
Date
Transact
Amount ($)
Coupon
Yield
at Market
Realized
G/L (BV)
Security Description
INTEREST
4/1/2022
4/1/2022
MONEY0002
MONEY MARKET FUND
15.41
4/11/2022
4/11/2022
305,000.00
931142DH3
WAL MART STORES INC GLOBAL NT (CALLABLE)
2.55%
4/11/2023
3,888.75
4/15/2022
4/15/2022
100,000.00
91282CBV2
US TREASURY N/B NOTES
0.37%
4/15/2024
187.50
4/16/2022
4/16/2022
250,000.00
3137EAEY1
FREDDIE MAC NOTES
0.12%
10/16/2023
156.25
4/20/2022
4/20/2022
265,000.00
3137EAEQ8
FREDDIE MAC NOTES
0.37%
4/20/2023
496.88
4/24/2022
4/24/2022
135,000.00
06051GJH3
BANK OF AMERICA CORP (CALLABLE) CORPORAT
0.81%
10/24/2024
546.75
5/2/2022
5/2/2022
MONEY0002
MONEY MARKET FUND
8.35
5/6/2022
5/6/2022
905,000.00
3137EAEZ8
FREDDIE MAC NOTES
0.25%
11/6/2023
1,131.25
5/12/2022
5/12/2022
110,000.00
023135BW5
AMAZON.COM INC CORPORATE NOTES
0.45%
5/12/2024
247.50
5/15/2022
5/15/2022
165,000.00
427866AZ1
HERSHEY COMPANY
3.37%
5/15/2023
2,784.38
5/15/2022
5/15/2022
650,000.00
912828TY6
US TREASURY NOTES
1.62%
11/15/2022
5,281.25
5/22/2022
5/22/2022
250,000.00
3135G04Q3
FANNIE MAE NOTES
0.25%
5/22/2023
312.50
5/27/2022
5/27/2022
690,000.00
3135G06H1
FANNIE MAE NOTES
0.25%
11/27/2023
862.50
5/29/2022
5/29/2022
60,000.00
023135AJ5
AMAZON.COM INC (CALLABLE) CORP NOTES
2.50%
11/29/2022
750.00
5/31/2022
5/31/2022
100,000.00
912828M80
US TREASURY NOTES
2.00%
11/30/2022
1,000.00
5/31/2022
5/31/2022
935,000.00
912828YV6
US TREASURY NOTES
1.50%
11/30/2024
7,012.50
6/1/2022
6/1/2022
115,000.00
46647PCH7
JPMORGAN CHASE & CO (CALLABLE) CORP NOTE
0.82%
6/1/2025
473.80
26

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date
Par ($)
CUSIP
Maturity
Date
Transact
Amount ($)
Coupon
Yield
at Market
Realized
G/L (BV)
Security Description
Tran.
Type
4/1/2022
4/1/2022
MONEY0002
MONEY MARKET FUND
15.41
INTEREST
4/11/2022
4/11/2022
305,000.00
931142DH3
WAL MART STORES INC GLOBAL NT
2.55%
4/11/2023
3,888.75
INTEREST
4/15/2022
4/15/2022
100,000.00
91282CBV2
US TREASURY N/B NOTES
0.37%
4/15/2024
187.50
INTEREST
4/16/2022
4/16/2022
250,000.00
3137EAEY1
FREDDIE MAC NOTES
0.12%
10/16/2023
156.25
INTEREST
4/20/2022
4/20/2022
265,000.00
3137EAEQ8
FREDDIE MAC NOTES
0.37%
4/20/2023
496.88
INTEREST
4/24/2022
4/24/2022
135,000.00
06051GJH3
BANK OF AMERICA CORP (CALLABLE)
0.81%
10/24/2024
546.75
INTEREST
5/2/2022
5/2/2022
MONEY0002
MONEY MARKET FUND
8.35
INTEREST
5/6/2022
5/6/2022
905,000.00
3137EAEZ8
FREDDIE MAC NOTES
0.25%
11/6/2023
1,131.25
INTEREST
5/12/2022
5/12/2022
110,000.00
023135BW5
AMAZON.COM INC CORPORATE NOTES
0.45%
5/12/2024
247.50
INTEREST
5/15/2022
5/15/2022
165,000.00
427866AZ1
HERSHEY COMPANY
3.37%
5/15/2023
2,784.38
INTEREST
5/15/2022
5/15/2022
650,000.00
912828TY6
US TREASURY NOTES
1.62%
11/15/2022
5,281.25
INTEREST
5/22/2022
5/22/2022
250,000.00
3135G04Q3
FANNIE MAE NOTES
0.25%
5/22/2023
312.50
INTEREST
5/27/2022
5/27/2022
690,000.00
3135G06H1
FANNIE MAE NOTES
0.25%
11/27/2023
862.50
INTEREST
5/29/2022
5/29/2022
60,000.00
023135AJ5
AMAZON.COM INC (CALLABLE) CORP
2.50%
11/29/2022
750.00
INTEREST
5/31/2022
5/31/2022
100,000.00
912828M80
US TREASURY NOTES
2.00%
11/30/2022
1,000.00
INTEREST
5/31/2022
5/31/2022
935,000.00
912828YV6
US TREASURY NOTES
1.50%
11/30/2024
7,012.50
INTEREST
6/1/2022
6/1/2022
115,000.00
46647PCH7
JPMORGAN CHASE & CO (CALLABLE)
0.82%
6/1/2025
473.80
INTEREST
6/1/2022
6/1/2022
MONEY0002
MONEY MARKET FUND
140.49
INTEREST
28

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Appendix
|
Important Disclosures
This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation, as it was prepared without regard to
any specific objectives or financial circumstances.
Investment advisory services are provided by PFM Asset Management LLC ("PFMAM"), an investment adviser registered with the U.S. Securities and Exchange
Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. ("USBAM"). USBAM is a subsidiary of U.S. Bank National Association ("U.S. Bank"). U.S. Bank
is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM. The
information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request.
PFMAM professionals have exercised reasonable professional care in the preparation of this performance report. Information in this report is obtained from sources
external to PFMAM and is generally believed to be reliable and available to the public; however, we cannot guarantee its accuracy, completeness or suitability. We rely
on the client's custodian for security holdings and market values. Transaction dates reported by the custodian may differ from money manager statements. While efforts
are made to ensure the data contained herein is accurate and complete, we disclaim all responsibility for any errors that may occur. References to particular issuers are
for illustrative purposes only and are not intended to be recommendations or advice regarding such issuers. Fixed income manager and index characteristics are
gathered from external sources. When average credit quality is not available, it is estimated by taking the market value weights of individual credit tiers on the portion of
the strategy rated by a NRSRO.
It is not possible to invest directly in an index. The index returns shown throughout this material do not represent the results of actual trading of investor assets.
Third-party providers maintain the indices shown and calculate the index levels and performance shown or discussed. Index returns do not reflect payment of any sales
charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be
lower than the performance shown.
The views expressed within this material constitute the perspective and judgment of PFMAM at the time of distribution and are subject to change. Any forecast,
projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon certain assumptions and current opinion as
of the date of issue and are also subject to change. Some, but not all assumptions are noted in the report. Assumptions may or may not be proven correct as actual
events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Opinions and data
presented are not necessarily indicative of future events or expected performance.
For more information regarding PFMAM's services or entities, please visit www.pfmam.com.
© 2022 PFM Asset Management LLC. Further distribution is not permitted without prior written consent.
30

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Appendix
|
Important Disclosures
Market values that include accrued interest are derived from closing bid prices as of the last business day of the month as supplied by Refinitiv, Bloomberg, or
Telerate. Where prices are not available from generally recognized sources, the securities are priced using a yield-based matrix system to arrive at an estimated
market value.
In accordance with generally accepted accounting principles, information is presented on a trade date basis; forward settling purchases are included in the monthly
balances, and forward settling sales are excluded.
Performance is presented in accordance with the CFA Institute's Global Investment Performance Standards (GIPS). Unless otherwise noted, performance is shown
gross of fees. Quarterly returns are presented on an unannualized basis. Returns for periods greater than one year are presented on an annualized basis. Past
performance is not indicative of future returns.
Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets.
Money market fund/cash balances are included in performance and duration computations.
Standard & Poor's is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings.
Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date, although, they may be called prior to maturity.
MBS maturities are represented by expected average life.
31

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Appendix
|
Glossary
Accrued Interest: Interest that is due on a bond or other fixed income security since the last interest payment was made.
Agencies: Federal agency securities and/or Government-sponsored enterprises.
Amortized Cost: The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase
date until the date of the report. Discount or premium with respect to short-term securities (those with less than one year to maturity at time of issuance) is amortized
on a straight line basis. Such discount or premium with respect to longer-term securities is amortized using the constant yield basis.
Asset-Backed Security: A financial instrument collateralized by an underlying pool of assets – usually ones that generate a cash flow from debt, such as loans,
leases, credit card balances, and receivables.
Bankers’ Acceptance: A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill as well as the insurer.
Commercial Paper: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory.
Contribution to Total Return: The weight of each individual security multiplied by its return, then summed for each sector to determine how much each sector added
or subtracted from the overall portfolio performance.
Effective Duration: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years.
Effective Yield: The total yield an investor receives in relation to the nominal yield or coupon of a bond. Effective yield takes into account the power of compounding
on investment returns, while nominal yield does not.
FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount.
Interest Rate: Interest per year divided by principal amount and expressed as a percentage.
Market Value: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date.
Maturity: The date upon which the principal or stated value of an investment becomes due and payable.
Negotiable Certificates of Deposit: A CD with a very large denomination, usually $1 million or more, that can be traded in secondary markets.
Par Value: The nominal dollar face amount of a security.
Pass-through Security: A security representing pooled debt obligations that passes income from debtors to its shareholders. The most common type is the
mortgage-backed security.
32

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2022
Appendix
|
Glossary
Repurchase Agreements: A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.
Settle Date: The date on which the transaction is settled and monies/securities are exchanged. If the settle date of the transaction (i.e., coupon payments and
maturity proceeds) occurs on a non-business day, the funds are exchanged on the next business day.
Supranational: A multinational union or association in which member countries cede authority and sovereignty on at least some internal matters to the group, whose
decisions are binding on its members.
Trade Date: The date on which the transaction occurred; however, the final consummation of the security transaction and payment has not yet taken place.
Unsettled Trade: A trade which has been executed; however, the final consummation of the security transaction and payment has not yet taken place.
U.S. Treasury: The department of the U.S. government that issues Treasury securities.
Yield: The rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a
percentage on an annualized basis.
YTM at Cost: The yield to maturity at cost is the expected rate of return based on the original cost, the annual interest receipts, maturity value, and the time period
from purchase date to maturity, stated as a percentage on an annualized basis.
YTM at Market: The yield to maturity at market is the rate of return based on the current market value, the annual interest receipts, maturity value, and the time
period remaining until maturity, stated as a percentage on an annualized basis.
33