Health Care Trust Investment Report as of 6-30-23

City of Chandler — Regular Meeting (2023-08-17)

Extracted text (via pymupdf) 52788 characters

Investment Performance Review
For the Quarter Ended June 30, 2023
Client Management Team
PFM Asset Management LLC
Luke Schneider, CFA, Managing Director
Annette Gaston, Senior Managing Consultant
213 Market Street
Harrisburg, PA 17101-2141
717-232-2723
1201 S. Alma School Rd
Suite 3000
Mesa, AZ 85210
520-260-1574
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

For the Quarter Ended June 30, 2023
Fixed Income Management
QUARTERLY MARKET SUMMARY
Summary
►In Q2, U.S. economic conditions were characterized by a myriad of financial
headlines: (1) investors contended with ongoing recession risks; (2) regional bank
concerns; (3) the Federal Reserve’s (Fed) historic pace of interest rate hikes; (4)
stubbornly high inflation; and (5) a debt ceiling impasse in Washington.
►President Biden signed the bi-partisan debt ceiling bill, avoiding a much-publicized
potential default and allowing the U.S. Treasury to fund its obligations. The bill
suspends the debt ceiling until January 1, 2025 and included some spending cuts.
►U.S. inflation, as measured by the consumer price index (CPI), has fallen from 6.5%
year-over-year (YoY) at the beginning of the year to just 3.0% as of June as monthly
gains have moderated. Prices for energy, used cars and airlines fares have shown
sharp declines over the past year. But, Core CPI, excluding food and energy prices,
remained elevated at 4.8% YoY due to elevated prices for shelter, food, and medical
services.
►The Fed followed up the two 25 basis point (bps) hikes in Q1 with one more 25 bp
hike at the May meeting, bringing the overnight rate to a target range of 5% to 5.25%.
At the June FOMC meeting, the Fed paused hiking, breaking the string of consecutive
meetings with an increase at 10. The “hawkish pause” was accompanied by new Fed
projections (the so called “dot plot”) which indicated the expectation for two more 25 bp
rate hikes in the remaining part of calendar year 2023, underscoring the Fed’s vigilance
in fighting inflationary pressures.
Economic Snapshot
►Real gross domestic product (GDP) increased at an annual rate of 2.0% in the first
quarter of 2023. The growth rate reflected increases in consumer spending, exports,
government spending, and business fixed investment that were partly offset by
decreases in private inventories and residential housing. Future growth expectations
have been continually increased, with the median forecast reported by a Bloomberg
survey of economists standing at 2.0% for Q2 as well.
►The U.S. labor market remained strong and tight in Q2. Over the second quarter,
the U.S. economy added 732,000 new jobs. Although the pace of job gains has
trended lower over the past two years, job creation remains elevated compared to pre-
pandemic levels. The unemployment rate closed the quarter at 3.6%, very near its 50-
year low of 3.4% reached in April. But, the strength of the labor market has moderated
slightly, as weekly unemployment claims have risen, the number of job openings has
fallen from record highs, and the labor force participation rate reached a post-pandemic
high of 62.6%. Wage growth, measured by average hourly earnings, remains elevated
at 4.4% YoY.
►On the consumer front, personal consumption continued to grow, durable goods
were strong, consumer credit reached record levels and consumer confidence hit an
18-month high. Spending on merchandise dropped while outlays for services
increased, underscoring the importance that the services sector has carried for
economic growth over the past several quarters.
►In the housing sector, mortgage rates have been above 6% for the entire year,
maintaining pressure on homebuyers. Homeowners appear reluctant to give up
below-market mortgage rates, resulting in low sales inventory. As a result, existing
home sales remain historically low, while new home sales to their highest level in more
than a year.
Interest Rates
►
U.S. Treasury yields jumped across the yield curve in the second quarter, as
economic data came in stronger than expected, and markets capitulated to the Fed’s
“higher-for-longer” trajectory for short term rates. Increases in the yield curve were led
by the 2-year U.S. Treasury note, which finished the quarter at 4.90%, up 87 bps from
4.03% on March 31.
►
While yields of all tenors increased, the U.S. Treasury yield curve remains steeply
inverted. The difference between the yield on the U.S. Treasury 2-year (4.90%) and
10-year note (3.84%) ended the quarter at over 100 bps (1.00%), marking one of the
deepest levels of curve inversion in over 40 years.
►
As a result of higher yields across the board, fixed income indices posted negative
total returns in Q2. The ICE BofA 2-, 5-, and 10-year U.S. Treasury indices returned
-0.92%, -1.68%, and -1.93%, respectively.
Sector Performance
►Diversification away from U.S. Treasury securities was strongly additive to fixed-
income performance during the second quarter as yield spreads across most sectors
tightened. Although investors began the quarter with heightened concern about market
volatility, recent bank failures, credit conditions and the looming debt ceiling impasse,
sentiment eased during the quarter. That move to a more “risk on” mentality resulted
in strong relative performance from spread sectors, like corporate, asset-backed and
mortgage-backed securities.
►Federal agency spreads tightened as net issuance slowed. Agency discount notes
found increased utility during Q2 as a replacement for U.S. Treasury bills during the
height of the debt ceiling uncertainty. In longer maturities, both callable and non-
callable agencies generated similar positive excess returns.
►Investment-grade (IG) corporate spreads continued to retrace from their banking
crisis wides but remain above longer-term averages. As spreads narrowed, the IG
curve flattened resulting in longer durations performing better on a relative basis, as did
lower quality issues. Although the spread between financials and industrials remains
well above longer-term averages, financials outperformed in Q2 as their retracement
from banking crisis wides was more significant.
►Asset-backed security (ABS) yield spreads also continued to retrace from mid-
March wides, but not to the extent in corporates. Like IG credit, ABS was a positive
contributor to performance during the quarter and excess returns were similar across
both auto and credit card collateral.
►Mortgage-back security (MBS) whipsawed in Q2 as a steep tightening of spreads
through the second half of the quarter more than offset the widening through April. As a
result, the sector broadly generated quite attractive excess returns for the quarter, with
30-year collateral outperforming 15-year terms. Strong returns were driven in part by
lighter supply due to a decline in existing home sales and refinancings.
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.
3

For the Quarter Ended June 30, 2023
Fixed Income Management
QUARTERLY MARKET SUMMARY
Labor Market
Economic Snapshot
Mar '23
Jun '22
2.6%
GDP Personal Consumption (QoQ SAAR)
2023Q1
4.2%
1.0%
1.3%
Retail Sales (YoY)
May '23
1.6%
2.2%
9.3%
ISM Manufacturing Survey (month)
Jun '23
46.0
46.3
53.1
Existing Home Sales SAAR (month)
May '23
4.30 mil.
4.43 mil.
5.13 mil.
Inflation / Prices
Personal Consumption Expenditures (YoY)
May '23
3.8%
4.2%
7.0%
Consumer Price Index (YoY)
May '23
4.0%
5.0%
9.1%
Consumer Price Index Core (YoY)
May '23
5.3%
5.6%
5.9%
Crude Oil Futures (WTI, per barrel)
Jun 30
$70.64
$75.67
$105.76
Gold Futures (oz.)
Jun 30
$1,929
$1,969
$1,807
Latest
0
-1,000K
2,000K
1,000K
4,000K
3,000K
5,000K
0.0%
2.0%
6.0%
4.0%
8.0%
10.0%
12.0%
Jun '20
Dec '20
Jun '21
Dec '21
Jun '22
Dec '22
Jun '23
Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right)
Change In Non-Farm Payrolls
Unemployment Rate
30%
20%
10%
40%
0%
-10%
-20%
-30%
-40%
Mar '20
Sep '20
Mar '21
Sep '21
Mar '22
Sep '22
Mar '23
Real GDP (QoQ)
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Jun '20
Dec '20
Jun '21
Dec '21
Jun '22
Dec '22
Consumer Price Index
CPI (YoY)
Core CPI (YoY)
2
2
Unemployment Rate
Jun '23
3.6%
3.5%
3.6%
Change In Non-Farm Payrolls
Jun '23
209,000
217,000
370,000
Average Hourly Earnings (YoY)
Jun '23
4.4%
4.3%
5.4%
Personal Income (YoY)
May '23
5.5%
5.5%
4.3%
Initial Jobless Claims (week)
7/1/23
248,000
228,000
213,000
Growth
Real GDP (QoQ SAAR)
2023Q1
2.0%
1
-1.6%
1
1. Data as of Fourth Quarter 2022.
2. Data as of First Quarter 2022.
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.
4

For the Quarter Ended June 30, 2023
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 06/30/2023
0%
1%
2%
3%
4%
5%
6%
3-yr
2-yr
1-yr
3-mo
5-yr
7-yr
10-yr
20-yr
30-yr
Yield
Maturity
March 31, 2023
June 30, 2023
June 30, 2022
6%
5%
4%
3%
2%
1%
0%
3-yr
2-yr
1-yr
3-mo
7-yr
0
5-yr
10-yr
25-yr
30-yr
Yield
Maturity
Federal Agency
U.S. Treasury
Corporates, A Rated
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
6/30/22
9/30/22
12/31/22
3/31/23
6/30/23
Yield
2-Year
5-Year
10-Year
Maturity
Jun '23
Mar '23
Change over
Quarter
Jun '22
Change over
Year
3-Month
5.30%
4.75%
0.55%
1.67%
3.63%
1-Year
5.42%
4.62%
0.80%
2.78%
2.64%
2-Year
4.90%
4.03%
0.87%
2.96%
1.94%
5-Year
4.16%
3.58%
0.58%
3.04%
1.12%
10-Year
3.84%
3.47%
0.37%
3.02%
0.82%
30-Year
3.86%
3.65%
0.21%
3.19%
0.67%
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.
5

For the Quarter Ended June 30, 2023
Fixed Income Management
QUARTERLY MARKET SUMMARY
June 30, 2023
Duration
Yield
3 Month
1 Year
3 Years
1-3 Year Indices
U.S. Treasury
1.82
4.98%
(0.57%)
0.13%
(1.05%)
Federal Agency
1.70
5.11%
(0.28%)
0.35%
(0.87%)
U.S. Corporates, A-AAA rated
1.87
5.62%
0.12%
1.27%
(0.48%)
Agency MBS (0 to 3 years)
1.99
5.32%
(0.18%)
(0.07%)
(1.95%)
Taxable Municipals
1.77
5.30%
(0.39%)
0.11%
0.53%
1-5 Year Indices
U.S. Treasury
2.57
4.71%
(0.86%)
(0.43%)
(1.79%)
Federal Agency
2.04
4.99%
(0.39%)
(0.05%)
(1.49%)
U.S. Corporates, A-AAA rated
2.62
5.47%
(0.05%)
1.20%
(1.14%)
Agency MBS (0 to 5 years)
3.10
5.09%
(0.44%)
(0.62%)
(2.39%)
Taxable Municipals
2.60
5.12%
(0.54%)
0.08%
(0.45%)
Master Indices (Maturities 1 Year or Greater)
U.S. Treasury
6.46
4.36%
(1.41%)
(2.47%)
(4.97%)
Federal Agency
3.36
4.81%
(0.43%)
(0.61%)
(2.53%)
U.S. Corporates, A-AAA rated
7.02
5.30%
(0.42%)
0.44%
(3.89%)
Agency MBS (0 to 30 years)
5.62
4.78%
(0.53%)
(1.56%)
(3.77%)
Taxable Municipals
9.28
5.02%
(0.40%)
(0.61%)
(4.24%)
Returns for periods greater than one year are annualized.
Source: ICE BofAML Indices.
As of 06/30/2023
Returns for Periods ended 06/30/2023
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.
6

For the Quarter Ended June 30, 2023
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.
7

Fixed-Income Sector Commentary – 2Q 2023
▸
U.S. Treasuries: After plummeting at the end of Q1 due
to volatility in the banking sector, short and medium-
term yields steadily climbed throughout the quarter, with
the 2-year rising over 100 basis points.
▸
Federal agency yield spreads tightened during the
quarter. Agency discount notes were favored over U.S.
Treasury bills during the debt ceiling impasse; however,
during Q1 value waned and callable spreads moved to
the tighter end of their historical range.
▸
Supranational issuance was heavier than usual in the
first couple months of the year which allowed spreads to
widen and sporadic buying opportunities to arise. As
supply dried up, spreads narrowed and traded in a tight
range for the balance of the quarter.
▸
Investment-Grade Corporate spreads continued to
retrace from their Q1 wides but remained above longer-
term averages. Following the “risk-on” theme in the
latter part of Q2, the IG curve flattened, resulting in
longer durations and lower quality (BBB) performing
best. Although the spread between financials and
industrials remained well above typical levels, financials
outperformed in Q2 as retracement from the
exceptionally wide spreads in Q1 was significant.
▸
Asset-Backed Security spreads also retraced from
mid-March wides, but not nearly to the extent as in
corporates. Auto ABS issuance increased during Q2,
which was a function of pent-up consumer demand.
▸
Mortgage-Backed Securities whipsawed in Q2 as a
steep tightening of spreads through the second half of
the quarter more than offset the steady and consistent
widening through April. As a result, the sector generated
attractive excess returns for the quarter. Strong returns
were driven largely by the risk-on sentiment through
much of the quarter and a modest decline in supply due
to a drop in existing home sales and refinancings.
▸
Taxable Municipals issuance remained heavily
oversubscribed due to a lack of new issuance. The
secondary market had sporadic but limited opportunities
that offered an attractive pickup versus industrial
corporates.
▸
Short-term credit (commercial paper and CDs) yields
increased during Q2 as the market repriced to actual
Fed rate increases and reduced expectations for Fed
rate cuts in late 2023. Spreads in short credit remained
elevated and attractive for most of Q2 and added
notable incremental income to shorter-term portfolios
and liability-matching strategies inside of 12-month
maturities.
PFM Asset Management LLC
© PFM Asset Management LLC | pfmam.com
For the Quarter Ended March 31, 2022
California Affiliated Risk Management Authorities
Market Update
CLIENT NAME
For the Quarter Ended June 30, 2023
Market Update
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
Market Update
© PFM Asset Management LLC pfmam.com
|
9

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
Account Summary
|
Account Summary
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.
1.
CHANDLER HEALTH CARE BENEFITS TRUST
Portfolio Values
June 30, 2023
PFMAM Managed Account
$17,325,817
Amortized Cost
$17,730,899
Market Value
$17,325,817
Accrued Interest
$136,008
Cash
$5,553,712
Analytics¹
June 30, 2023
Yield at Market
4.96%
Yield on Cost
2.73%
Portfolio Duration
1.50
10

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
Account Summary
|
0.0%
13.0%
1.5%
0.5%
23.1%
61.9%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Money Market Fund - $10
Corporate - $2,275,002
Negotiable CD - $259,069
Municipal - $82,765
Federal Agency - $4,041,669
U.S. Treasury - $10,803,320
Portfolio Allocation
Sector Limit for Analysis*
Sector Allocation Analytics
For informational/analytical purposes only and is not provided for compliance assurance. Includes accrued interest.
*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, 2023
Account 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
61.9%
U.S. Treasury
UNITED STATES TREASURY
61.9%
AA / Aaa / AAA
23.1%
Federal Agency
FANNIE MAE
8.8%
AA / Aaa / AAA
FEDERAL HOME LOAN BANKS
5.0%
AA / Aaa / NR
FREDDIE MAC
9.3%
AA / Aaa / AAA
0.5%
Municipal
CITY OF SCOTTSDALE
0.5%
AAA / Aaa / AAA
1.5%
Negotiable CD
TORONTO-DOMINION BANK
1.5%
A / A / NR
13.0%
Corporate
AMAZON.COM INC
1.1%
AA / A / AA
APPLE INC
1.5%
AA / Aaa / NR
BANK OF AMERICA CO
0.8%
A / A / AA
CISCO SYSTEMS INC
1.3%
AA / A / NR
INTEL CORPORATION
0.8%
A / A / A
JP MORGAN CHASE & CO
1.2%
A / A / AA
MICROSOFT CORP
1.5%
AAA / Aaa / NR
NOVARTIS AG
1.3%
AA / A / AA
PEPSICO INC
0.9%
A / A / NR
TEXAS INSTRUMENTS INC
0.2%
A / Aa / NR
TOYOTA MOTOR CORP
0.8%
A / A / A
WAL-MART STORES INC
1.7%
AA / Aa / AA
100.0%
Total
12

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
Portfolio Snapshot
|
1. Yield and duration calculations exclude cash and cash equivalents. Sector allocation includes market values and accrued interest.
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 BofA 1-3 Year U.S Treasury Index. Prior to 3/31/17 it was the ICE BofA 0-3 Year U.S Treasury Index. Prior to 9/30/12 it was the ICE BofA 0-6
Month U.S Treasury Index. Source: Bloomberg.
Portfolio Snapshot - CHANDLER HEALTH CARE BENEFITS TRUST¹
Credit Quality - S&P2
35%
24%
39%
3%
7%
58%
35%
0%
20%
40%
60%
0-1 Yr
1-2 Yrs
2-3 Yrs
3-4 Yrs
Portfolio
Benchmark3
Duration Distribution
U.S. Treasury | 62%
Federal Agency | 23%
Corporate | 13%
Negotiable CD | 1%
Municipal | 1%
Sector Allocation
AAA | 2%
AA+ | 86%
AA | 3%
AA- | 3%
A+ | 2%
A | 2%
A- | 2%
Portfolio Statistics
Portfolio Effective Duration
1.50 years
Benchmark Effective Duration
1.75 years
Portfolio Credit Quality
AA
Yield At Market
4.96%
Yield At Cost
2.73%
Total Market Value
$23,015,537.43
$17,325,816.96
Securities Sub-Total
$5,553,712.15
Cash
$136,008.32
Accrued Interest
14

Liquidity Vehicle
Quarter-End Yield
Allspring Treasury Plus Money
Market A Fund1
4.97%
First American Funds2
4.95%
1.
Allspring Treasury Plus Money Market A Fund ticker symbol PISXX. Account yield from the Fund Fact Sheet as of 6/30/23.
2.
First American Funds ticker symbol FGZXX; Account yield from statement as of 6/30/23. 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
© PFM Asset Management LLC | pfmam.com
For the Quarter Ended June 30, 2023
Portfolio Snapshot
15

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
Portfolio Characteristics
|
$0.0
$3.6
$7.2
$10.8
$14.4
$18.0
Millions
June 2023
$0.0
$3.6
$7.2
$10.8
$14.4
$18.0
Millions
March 2023
$0.0
$3.6
$7.2
$10.8
$14.4
$18.0
Millions
December 2022
$0.0
$3.6
$7.2
$10.8
$14.4
$18.0
Millions
September 2022
Sector Allocation Review - CHANDLER HEALTH CARE BENEFITS TRUST
U.S. Treasury
Federal Agency
Municipal
Negotiable CD
Corporate
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-22
% of Total
Security Type
Dec-22
% of Total
Mar-23
% of Total
% of Total
Jun-23
U.S. Treasury
$6.5
51.2%
$5.5
42.9%
$10.3
59.0%
$10.7
61.8%
Federal Agency
$4.5
34.9%
$4.5
35.0%
$4.4
25.0%
$4.0
23.2%
Municipal
$0.1
0.6%
$0.1
0.6%
$0.1
0.5%
$0.1
0.5%
Negotiable CD
$0.3
2.1%
$0.4
3.0%
$0.2
1.4%
$0.2
1.4%
Corporate
$1.4
11.2%
$2.4
18.5%
$2.5
14.1%
$2.3
13.1%
Total
$12.8
100.0%
$12.8
100.0%
$17.4
100.0%
$17.3
100.0%
16

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
Portfolio Activity
|
Portfolio Activity - CHANDLER HEALTH CARE BENEFITS TRUST
Net Activity by Sector
($ millions)
Federal Agency
Corporate
U.S. Treasury
Federal Agency
Corporate
U.S. Treasury
($0.4)
($0.2)
$0.0
$0.2
$0.4
$0.6
$0.8
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
U.S. Treasury
$543,971
Corporate
($177,321)
Federal Agency
($360,519)
$6,131
Total Net Activity
Sales/Maturities Purchases
17

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
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 BofA 1-3 Year U.S Treasury Index. Prior to 3/31/17 it was the ICE BofA 0-3 Year U.S Treasury Index. Prior to 9/30/12 it was the ICE BofA 0-6 Month U.S
Treasury Index. Source: Bloomberg.
4.
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
Return
Portfolio
Benchmark
Portfolio Performance
Market Value Basis Earnings
3 Months
1 Year
3 Years
5 Years
10 Years¹
Interest Earned²
$136,390
$349,956
$742,381
$1,345,121
$1,818,320
Change in Market Value
($125,629)
($67,818)
($1,312,843)
($720,274)
($996,073)
$10,761
Total Dollar Return
$282,138
($570,462)
$624,847
$822,247
Total Return³
Portfolio
0.06%
1.65%
0.02%
1.60%
1.15%
Benchmark⁴
-0.57%
0.13%
-1.05%
0.95%
0.71%
3 Months
1 Year
3 Years
5 Years
10 Years
18

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
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
$136,390
-
$18,080
$154,470
1 Year
$349,956
($8,731)
$20,743
$361,967
3 Years
$742,381
$119,884
($34,707)
$827,558
5 Year
$1,345,121
$131,456
$19,720
$1,496,296
10 Year¹
$1,818,320
$115,363
($99,412)
$1,834,271
19

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
Portfolio Composition
|
Issuer Distribution
As of June 30, 2023
Issuer
Market Value ($)
% of Portfolio
UNITED STATES TREASURY
10,708,640
61.80%
FREDDIE MAC
1,629,502
9.41%
FANNIE MAE
1,538,199
8.88%
FEDERAL HOME LOAN BANKS
853,119
4.92%
WAL-MART STORES INC
303,660
1.75%
APPLE INC
256,350
1.48%
MICROSOFT CORP
254,745
1.47%
TORONTO-DOMINION BANK
249,839
1.44%
CISCO SYSTEMS INC
223,099
1.29%
NOVARTIS AG
219,819
1.27%
JP MORGAN CHASE & CO
213,055
1.23%
AMAZON.COM INC
195,246
1.13%
PEPSICO INC
150,526
0.87%
INTEL CORPORATION
145,962
0.84%
TOYOTA MOTOR CORP
134,154
0.77%
BANK OF AMERICA CO
132,707
0.77%
CITY OF SCOTTSDALE
82,491
0.48%
TEXAS INSTRUMENTS INC
34,702
0.20%
17,325,817
Grand Total
100.00%
20

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
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 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
748,825.00
769,772.86
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
96,453.12
99,950.91
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
301,564.69
311,856.83
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
136,631.25
141,872.70
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
96,109.38
100,044.74
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
887,665.63
949,081.78
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
579,925.81
623,441.82
US TREASURY N/B NOTES
DTD 02/15/2022 1.500% 02/15/2025
91282CDZ1
235,000.00
AA+
Aaa
3/22/2023
3/24/2023
223,075.59
4.31
1,324.31
221,817.96
224,776.62
US TREASURY N/B NOTES
DTD 05/15/2022 2.750% 05/15/2025
91282CEQ0
495,000.00
AA+
Aaa
8/12/2022
8/15/2022
488,773.83
3.23
1,738.55
475,432.06
490,758.27
US TREASURY N/B NOTES
DTD 07/15/2022 3.000% 07/15/2025
91282CEY3
650,000.00
AA+
Aaa
8/8/2022
8/9/2022
647,384.77
3.14
8,995.85
626,437.50
648,180.82
US TREASURY N/B NOTES
DTD 07/15/2022 3.000% 07/15/2025
91282CEY3
235,000.00
AA+
Aaa
8/15/2022
8/16/2022
234,045.31
3.15
3,252.35
226,481.25
234,331.54
US TREASURY N/B NOTES
DTD 08/15/2022 3.125% 08/15/2025
91282CFE6
135,000.00
AA+
Aaa
9/29/2022
9/29/2022
130,923.63
4.25
1,584.95
130,380.46
131,990.23
US TREASURY NOTES
DTD 08/17/2015 2.000% 08/15/2025
912828K74
2,375,000.00
AA+
Aaa
2/7/2023
2/8/2023
2,249,663.09
4.23
17,845.30
2,239,921.88
2,269,166.00
US TREASURY N/B NOTES
DTD 08/15/2022 3.125% 08/15/2025
91282CFE6
100,000.00
AA+
Aaa
9/12/2022
9/12/2022
98,765.63
3.57
1,174.03
96,578.12
99,103.12
US TREASURY N/B NOTES
DTD 11/15/2022 4.500% 11/15/2025
91282CFW6
105,000.00
AA+
Aaa
11/29/2022 11/30/2022
105,750.59
4.24
603.46
104,458.60
105,602.69
21

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
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 N/B NOTES
DTD 11/15/2022 4.500% 11/15/2025
91282CFW6
125,000.00
AA+
Aaa
12/1/2022
12/2/2022
126,665.04
4.02
718.41
124,355.47
126,339.44
US TREASURY N/B NOTES
DTD 11/15/2022 4.500% 11/15/2025
91282CFW6
270,000.00
AA+
Aaa
12/12/2022 12/13/2022
272,562.89
4.15
1,551.77
268,607.83
272,082.95
US TREASURY N/B NOTES
DTD 12/15/2022 4.000% 12/15/2025
91282CGA3
270,000.00
AA+
Aaa
1/3/2023
1/4/2023
268,565.63
4.19
472.13
265,781.25
268,802.91
US TREASURY N/B NOTES
DTD 01/15/2023 3.875% 01/15/2026
91282CGE5
2,280,000.00
AA+
Aaa
2/7/2023
2/8/2023
2,266,017.19
4.10
40,758.15
2,237,606.14
2,267,882.43
US TREASURY N/B NOTES
DTD 02/15/2023 4.000% 02/15/2026
91282CGL9
110,000.00
AA+
Aaa
4/19/2023
4/20/2023
109,918.36
4.03
1,653.04
108,315.63
109,924.06
US TREASURY N/B NOTES
DTD 04/15/2023 3.750% 04/15/2026
91282CGV7
147,000.00
AA+
Aaa
5/1/2023
5/1/2023
146,643.98
3.84
1,159.73
143,899.21
146,664.09
US TREASURY N/B NOTES
DTD 04/15/2023 3.750% 04/15/2026
91282CGV7
185,000.00
AA+
Aaa
5/12/2023
5/15/2023
185,317.97
3.69
1,459.53
181,097.65
185,303.95
US TREASURY N/B NOTES
DTD 05/15/2023 3.625% 05/15/2026
91282CHB0
250,000.00
AA+
Aaa
5/19/2023
5/22/2023
247,324.22
4.01
1,157.44
243,906.25
247,422.50
US TREASURY NOTES
DTD 08/15/2017 2.250% 08/15/2027
9128282R0
180,000.00
AA+
Aaa
9/1/2022
9/1/2022
170,894.53
3.37
1,521.55
166,387.50
172,419.66
11,116,000.00
11,010,406.55
94,680.43
10,708,639.64
Security Type Sub-Total
3.01
10,996,772.92
Negotiable CD
TORONTO DOMINION BANK NY CERT
DEPOS
DTD 10/31/2022 5.470% 10/25/2024
89115B6F2
250,000.00
A
A1
10/27/2022 10/31/2022
250,000.00
5.44
9,230.63
249,838.75
250,000.00
250,000.00
250,000.00
9,230.63
249,838.75
Security Type Sub-Total
5.44
250,000.00
Municipal
SCOTTSDALE, AZ TXBL GO BONDS
DTD 12/30/2020 0.608% 07/01/2025
810454BL1
90,000.00
AAA
Aaa
12/10/2020 12/30/2020
90,000.00
0.61
273.60
82,491.30
90,000.00
90,000.00
90,000.00
273.60
82,491.30
Security Type Sub-Total
0.61
90,000.00
22

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
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 (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
368,095.98
369,975.63
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
129,196.99
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
163,820.91
164,991.72
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
104,033.16
104,997.82
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
79,263.36
80,000.92
FREDDIE MAC NOTES
DTD 10/16/2020 0.125% 10/16/2023
3137EAEY1
250,000.00
AA+
Aaa
10/14/2020 10/16/2020
249,067.50
0.25
65.10
246,279.50
249,908.88
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
117,923.76
120,017.47
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
181,799.13
184,983.73
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
589,618.80
599,936.93
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
445,795.80
455,017.38
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
230,246.19
234,963.61
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
146,763.30
149,978.84
FEDERAL HOME LOAN BANK NOTES
(CALLABLE)
DTD 08/08/2022 4.100% 08/08/2025
3130ASRJ0
875,000.00
AA+
Aaa
8/5/2022
8/8/2022
874,562.50
4.12
14,250.35
853,118.88
874,693.03
FANNIE MAE NOTES (CALLABLE)
DTD 08/30/2022 4.000% 08/28/2025
3135GACV1
375,000.00
AA+
Aaa
8/25/2022
8/30/2022
374,981.25
4.00
5,098.31
364,864.50
374,986.48
4,095,000.00
4,091,925.66
20,848.81
4,020,820.26
Security Type Sub-Total
1.43
4,094,452.44
23

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
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
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
134,154.36
134,997.68
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
105,317.30
109,953.70
JPMORGAN CHASE & CO
CORPORATE NOTES (CAL
DTD 09/16/2020 0.653% 09/16/2024
46647PBS4
105,000.00
A-
A1
9/9/2020
9/16/2020
105,000.00
0.65
199.98
103,776.44
105,000.00
BANK OF AMERICA CORP
(CALLABLE) CORPORAT
DTD 10/21/2020 0.810% 10/24/2024
06051GJH3
135,000.00
A-
A1
10/16/2020 10/21/2020
135,000.00
0.81
203.51
132,707.03
135,000.00
TEXAS INSTRUMENTS INC
CORPORATE NOTES
DTD 11/18/2022 4.700% 11/18/2024
882508BR4
35,000.00
A+
Aa3
11/15/2022 11/18/2022
34,984.25
4.72
196.49
34,702.29
34,989.10
APPLE INC CORPORATE NOTES
DTD 05/13/2015 3.200% 05/13/2025
037833BG4
265,000.00
AA+
Aaa
12/15/2022 12/19/2022
257,103.00
4.52
1,130.67
256,350.14
258,851.88
JPMORGAN CHASE & CO (CALLABLE)
CORP NOTE
DTD 06/01/2021 0.824% 06/01/2025
46647PCH7
115,000.00
A-
A1
5/24/2021
6/1/2021
115,000.00
0.82
78.97
109,278.98
115,000.00
CISCO SYSTEMS INC CORPORATE
NOTES
DTD 06/17/2015 3.500% 06/15/2025
17275RAW2
230,000.00
AA-
A1
12/15/2022 12/19/2022
224,910.10
4.45
357.78
223,099.08
225,996.39
PEPSICO INC CORP NOTES
(CALLABLE)
DTD 07/17/2015 3.500% 07/17/2025
713448CY2
155,000.00
A+
A1
1/17/2023
1/19/2023
151,523.35
4.46
2,471.39
150,525.77
152,146.09
INTEL CORP NOTES (CALLABLE)
DTD 07/29/2015 3.700% 07/29/2025
458140AS9
150,000.00
A
A2
1/17/2023
1/19/2023
147,154.50
4.50
2,343.33
145,962.15
147,657.55
MICROSOFT CORP NOTES
(CALLABLE)
DTD 11/03/2015 3.125% 11/03/2025
594918BJ2
265,000.00
AAA
Aaa
1/23/2023
1/25/2023
256,737.30
4.33
1,334.20
254,745.03
258,017.90
NOVARTIS CAPITAL CORP NOTES
(CALLABLE)
DTD 11/20/2015 3.000% 11/20/2025
66989HAJ7
230,000.00
AA-
A1
1/27/2023
1/31/2023
221,862.60
4.35
785.83
219,819.28
223,062.55
24

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
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
BUY
4/19/2023
4/20/2023
110,000.00
91282CGL9
US TREASURY N/B NOTES
4.00%
2/15/2026
110,696.26
4.03%
5/1/2023
5/1/2023
147,000.00
91282CGV7
US TREASURY N/B NOTES
3.75%
4/15/2026
146,884.96
3.84%
5/12/2023
5/15/2023
185,000.00
91282CGV7
US TREASURY N/B NOTES
3.75%
4/15/2026
185,886.62
3.69%
5/19/2023
5/22/2023
250,000.00
91282CHB0
US TREASURY N/B NOTES
3.62%
5/15/2026
247,496.60
4.01%
6/2/2023
6/6/2023
100,000.00
023135BX3
AMAZON INC CORP NOTES (CALLABLE)
1.00%
5/12/2026
90,663.67
4.45%
Total BUY
792,000.00
781,628.11
0.00
INTEREST
4/3/2023
4/3/2023
MONEY0002
MONEY MARKET FUND
5,261.74
4/15/2023
4/15/2023
100,000.00
91282CBV2
US TREASURY N/B NOTES
0.37%
4/15/2024
187.50
4/16/2023
4/16/2023
250,000.00
3137EAEY1
FREDDIE MAC NOTES
0.12%
10/16/2023
156.25
4/24/2023
4/24/2023
135,000.00
06051GJH3
BANK OF AMERICA CORP (CALLABLE) CORPORAT
0.81%
10/24/2024
546.75
5/1/2023
5/1/2023
MONEY0002
MONEY MARKET FUND
13,666.93
5/3/2023
5/3/2023
265,000.00
594918BJ2
MICROSOFT CORP NOTES (CALLABLE)
3.12%
11/3/2025
4,140.63
5/6/2023
5/6/2023
905,000.00
3137EAEZ8
FREDDIE MAC NOTES
0.25%
11/6/2023
1,131.25
5/12/2023
5/12/2023
110,000.00
023135BW5
AMAZON.COM INC CORPORATE NOTES
0.45%
5/12/2024
247.50
5/13/2023
5/13/2023
265,000.00
037833BG4
APPLE INC CORPORATE NOTES
3.20%
5/13/2025
4,240.00
5/15/2023
5/15/2023
495,000.00
91282CEQ0
US TREASURY N/B NOTES
2.75%
5/15/2025
6,806.25
26

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
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
5/15/2023
5/15/2023
500,000.00
91282CFW6
US TREASURY N/B NOTES
4.50%
11/15/2025
11,250.00
5/18/2023
5/18/2023
35,000.00
882508BR4
TEXAS INSTRUMENTS INC CORPORATE NOTES
4.70%
11/18/2024
822.50
5/20/2023
5/20/2023
230,000.00
66989HAJ7
NOVARTIS CAPITAL CORP NOTES (CALLABLE)
3.00%
11/20/2025
3,450.00
5/27/2023
5/27/2023
690,000.00
3135G06H1
FANNIE MAE NOTES
0.25%
11/27/2023
862.50
5/31/2023
5/31/2023
935,000.00
912828YV6
US TREASURY NOTES
1.50%
11/30/2024
7,012.50
6/1/2023
6/1/2023
115,000.00
46647PCH7
JPMORGAN CHASE & CO (CALLABLE) CORP NOTE
0.82%
6/1/2025
473.80
6/1/2023
6/1/2023
MONEY0002
MONEY MARKET FUND
16,501.36
6/4/2023
6/4/2023
150,000.00
3137EAFA2
FREDDIE MAC NOTES
0.25%
12/4/2023
187.50
6/15/2023
6/15/2023
230,000.00
17275RAW2
CISCO SYSTEMS INC CORPORATE NOTES
3.50%
6/15/2025
4,025.00
6/15/2023
6/15/2023
270,000.00
91282CGA3
US TREASURY N/B NOTES
4.00%
12/15/2025
5,400.00
Total INTEREST
5,680,000.00
86,369.96
0.00
MATURITY
4/20/2023
4/20/2023
110,000.00
3137EAEQ8
FREDDIE MAC NOTES
0.37%
4/20/2023
110,206.25
4/30/2023
4/30/2023
145,000.00
9128284L1
US TREASURY NOTES
2.75%
4/30/2023
146,993.75
5/15/2023
5/15/2023
165,000.00
427866AZ1
HERSHEY COMPANY (CALLABLE)
3.37%
5/15/2023
167,784.38
5/22/2023
5/22/2023
250,000.00
3135G04Q3
FANNIE MAE NOTES
0.25%
5/22/2023
250,312.50
27

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
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
4/19/2023
4/20/2023
110,000.00
91282CGL9
US TREASURY N/B NOTES
4.00%
2/15/2026
110,696.26
4.03%
BUY
5/1/2023
5/1/2023
147,000.00
91282CGV7
US TREASURY N/B NOTES
3.75%
4/15/2026
146,884.96
3.84%
BUY
5/12/2023
5/15/2023
185,000.00
91282CGV7
US TREASURY N/B NOTES
3.75%
4/15/2026
185,886.62
3.69%
BUY
5/19/2023
5/22/2023
250,000.00
91282CHB0
US TREASURY N/B NOTES
3.62%
5/15/2026
247,496.60
4.01%
BUY
6/2/2023
6/6/2023
100,000.00
023135BX3
AMAZON INC CORP NOTES
1.00%
5/12/2026
90,663.67
4.45%
BUY
4/3/2023
4/3/2023
MONEY0002
MONEY MARKET FUND
5,261.74
INTEREST
4/15/2023
4/15/2023
100,000.00
91282CBV2
US TREASURY N/B NOTES
0.37%
4/15/2024
187.50
INTEREST
4/16/2023
4/16/2023
250,000.00
3137EAEY1
FREDDIE MAC NOTES
0.12%
10/16/2023
156.25
INTEREST
4/24/2023
4/24/2023
135,000.00
06051GJH3
BANK OF AMERICA CORP (CALLABLE)
0.81%
10/24/2024
546.75
INTEREST
5/1/2023
5/1/2023
MONEY0002
MONEY MARKET FUND
13,666.93
INTEREST
5/3/2023
5/3/2023
265,000.00
594918BJ2
MICROSOFT CORP NOTES (CALLABLE)
3.12%
11/3/2025
4,140.63
INTEREST
5/6/2023
5/6/2023
905,000.00
3137EAEZ8
FREDDIE MAC NOTES
0.25%
11/6/2023
1,131.25
INTEREST
5/12/2023
5/12/2023
110,000.00
023135BW5
AMAZON.COM INC CORPORATE NOTES
0.45%
5/12/2024
247.50
INTEREST
5/13/2023
5/13/2023
265,000.00
037833BG4
APPLE INC CORPORATE NOTES
3.20%
5/13/2025
4,240.00
INTEREST
5/15/2023
5/15/2023
495,000.00
91282CEQ0
US TREASURY N/B NOTES
2.75%
5/15/2025
6,806.25
INTEREST
5/15/2023
5/15/2023
500,000.00
91282CFW6
US TREASURY N/B NOTES
4.50%
11/15/2025
11,250.00
INTEREST
5/18/2023
5/18/2023
35,000.00
882508BR4
TEXAS INSTRUMENTS INC CORPORATE
4.70%
11/18/2024
822.50
INTEREST
5/20/2023
5/20/2023
230,000.00
66989HAJ7
NOVARTIS CAPITAL CORP NOTES
3.00%
11/20/2025
3,450.00
INTEREST
29

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
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
5/27/2023
5/27/2023
690,000.00
3135G06H1
FANNIE MAE NOTES
0.25%
11/27/2023
862.50
INTEREST
5/31/2023
5/31/2023
935,000.00
912828YV6
US TREASURY NOTES
1.50%
11/30/2024
7,012.50
INTEREST
6/1/2023
6/1/2023
115,000.00
46647PCH7
JPMORGAN CHASE & CO (CALLABLE)
0.82%
6/1/2025
473.80
INTEREST
6/1/2023
6/1/2023
MONEY0002
MONEY MARKET FUND
16,501.36
INTEREST
6/4/2023
6/4/2023
150,000.00
3137EAFA2
FREDDIE MAC NOTES
0.25%
12/4/2023
187.50
INTEREST
6/15/2023
6/15/2023
230,000.00
17275RAW2
CISCO SYSTEMS INC CORPORATE
3.50%
6/15/2025
4,025.00
INTEREST
6/15/2023
6/15/2023
270,000.00
91282CGA3
US TREASURY N/B NOTES
4.00%
12/15/2025
5,400.00
INTEREST
4/20/2023
4/20/2023
110,000.00
3137EAEQ8
FREDDIE MAC NOTES
0.37%
4/20/2023
110,206.25
MATURITY
4/30/2023
4/30/2023
145,000.00
9128284L1
US TREASURY NOTES
2.75%
4/30/2023
146,993.75
MATURITY
5/15/2023
5/15/2023
165,000.00
427866AZ1
HERSHEY COMPANY (CALLABLE)
3.37%
5/15/2023
167,784.38
MATURITY
5/22/2023
5/22/2023
250,000.00
3135G04Q3
FANNIE MAE NOTES
0.25%
5/22/2023
250,312.50
MATURITY
6/3/2023
6/3/2023
100,000.00
023135BP0
AMAZON.COM INC CORPORATE NOTES
0.40%
6/3/2023
100,200.00
MATURITY
TOTALS
1,643,494.95
0.00
7,242,000.00
30

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
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.
© 2023 PFM Asset Management LLC. Further distribution is not permitted without prior written consent.
31

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
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.
32

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
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.
33

© PFM Asset Management LLC pfmam.com
CITY OF CHANDLER
For the Quarter Ended June 30, 2023
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.
34