notice of regular meeting and agenda -...

NOTICE OF REGULAR MEETING AND AGENDA Notice is hereby given that a regular meeting of the Board of Trustees of CalTRUST will be held on September 18-19, 2018 at 2:00 p.m., at the Park Hyatt Aviara, 7100 Aviara Resort Drive, Carlsbad, CA.

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AGENDA

September 18, 2018 Location: Park Hyatt Aviara - Avocet 2:00 p.m. Presiding: Dan McAllister, President

1. Roll Call _____ Dan McAllister - President _____ John Colville - Secretary _____ Don Kent - Treasurer _____ Chuck Lomeli _____ Matt McCue _____ Bobbie Ormonde _____ Russell “Rusty” Watts _____ Mary Zeeb

2. Welcome and Introductions Dan McAllister

3. Overview of Current Management Structure Alan Fernandes & Laura Labanieh

4. Management Partners Organizational Analysis Review Management Partners - ACTION ITEM

5. Public Comment Any member of the public may address the Board concerning any matter not on the Agenda within the Board’s jurisdiction.

Public Comment – In accordance with Government Code Section 54954.3, any member of the public may address the Board concerning any matter on the agenda before the Board acts on it and on any other matter during the public comment period at the conclusion of the agenda.

AGENDA

September 19, 2018 Location: Park Hyatt Aviara – Avocet 8:45 a.m. Breakfast 9:00 a.m. Presiding: Dan McAllister, President

6. Roll Call _____ Dan McAllister - President _____ John Colville - Secretary _____ Don Kent - Treasurer _____ Chuck Lomeli _____ Matt McCue _____ Bobbie Ormonde _____ Russell “Rusty” Watts _____ Mary Zeeb

7. Board of Trustees Laura Labanieh & Chuck Lomeli - ACTION ITEM a. Board Resignations b. Board Size c. Product Review Committee d. California Special Districts Association Recommendation

8. Consider Minutes of the Previous Board Meetings Dan McAllister – ACTION ITEM a. April 17-18, 2018 b. June 25, 2018

9. Conflict of Interest Code

Laura Labanieh – ACTION ITEM

10. Budget Update FY 2018-19 Laura Labanieh – ACTION ITEM

11. Audited Financial Statements Update Laura Labanieh

12. Custody Update Tim Banach

13. Fund Accounting/Recordkeeping Update Katie Yockey, Jon Reiners, & Chris Baird

14. Investment, Market & Portfolio Strategy Update & Review Ron Hill, Tom Musmanno, & Charlie Praska - ACTION ITEM a. Interest Rate & Economic Overview b. Liquidity Fund c. Short-Term Fund d. Medium-Term Fund e. Money Market & Government Funds

15. Sponsorship AgreementsLaura Labanieh

16. Client Update & MarketingLaura Labanieh & Kyla Tanaka

17. Future MeetingsLaura Labanieh

• CalTRUST Annual Meeting – April 17, 2019 @ Quail Lodge Carmel

18. Other Business

19. Public CommentAny member of the public may address the Board concerning any matter not onthe Agenda within the Board’s jurisdiction.

20. Adjourn

A person with a qualifying disability under the Americans with Disabilities Act of 1990 may request the Agency provide a disability-related modification or accommodation in order to participate in any public meeting of the Agency. Such assistance includes appropriate alternative formats for the agendas and agenda packets used for any public meetings of the Agency. Requests for such assistance and for agendas and agenda packets shall be made in person, by telephone, facsimile, or written correspondence to the Agency office, at least 48 hours before a public Agency meeting.

ChrisBairdGemini(402)[email protected](619)[email protected](530)749-7575rbendorf@co.yuba.ca.usAmandaCadelagoLeagueofCaliforniaCities(916)658-8226acadelago@cacities.orgCarolynColemanLeagueofCaliforniaCities(916)[email protected](916)808-8297jcolville@cityofsacramento.orgNormanCoppingerLeagueofCaliforniaCities(916)[email protected](805)[email protected](916)[email protected]

RonHillBlackRock(215)349-9861ronald.hill@blackrock.comMikeJohnsonCSACFinanceCorporation(707)[email protected](951)[email protected](916)[email protected](707)[email protected](619)531-5231dan.mcallister@sdcounty.ca.govNeilMcCormickCaliforniaSpecialDistrictsAssociation(916)[email protected](760)[email protected](530)[email protected]

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SusanMuranishiAlamedaCounty(510)[email protected](212)810-8052thomas.musmanno@blackrock.comMaryNeilanManagementPartners(408)437-5400mneilan@managementpartners.comBobbieOrmondeWestlandsWaterDistrict(559)[email protected](415)[email protected]@nstar-financial.comJimSteeleManagementPartners(408)437-5400jsteele@managementpartners.comKyleTanakaCSACFinanceCorporation(916)[email protected](408)[email protected]

RustyWattsContraCostaCounty(925)957-2888rwatts@tax.cccounty.usRickWoodCaliforniaSpecialDistrictsAssociation(916)[email protected](402)670-0581katie.yockey@nstar-financial.comSendyYoungCSACFinanceCorporation(916)[email protected](831)[email protected]

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Agenda Item: 3. Overview of Current Management Structure

Information Item Presented By: Alan Fernandes & Laura Labanieh BACKGROUND: Trustee Lomeli has requested a better understanding of the services that are currently being provided by the CSAC Finance Corporation outside of the scope of the services specified in the Administrative Agreement. Per the Administrative Agreement, the contracted duties are as follows: 1. Description of Services. Subject to the control of CalTRUST and supervision by

Trustees and subject to Section 3, the Administrator agrees to perform the following services (hereinafter “ the Administrative Services”):

a. Supervision, under the general direction of Trustees, of all administrative and ministerial aspects of operations, including, but not limited to, facilitation and providing notice of meetings of Participants and Trustees, making statutory and regulatory filings and preparing staff analyses for Trustees;

b. At the request of CalTRUST, developing procedures to assist CalTRUST and its Participants with, among other matters, filing of Fair Political Practices Commission forms, adherence of CalTRUST to its investment objectives, policies, restrictions, tax matters and applicable laws and regulations;

c. Management of legal procedures and policies, legal services and independent accountant services;

d. Periodic updating and preparation of the Information Statement;

e. Preparation of tax returns, financial statements and reports for the Shares Program;

f. Coordination of the activities of the Custodian for the Shares Program;

g. Coordination of an Investment Advisor, as appointed by the CalTRUST Board of Trustees;

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h. Coordination of the Fund Accountant, as appointed by the CalTRUST Board of Trustees;

i. Coordination of an annual audit of CalTRUST;

j. Coordination of all bookkeeping services, including ensuring that all CalTRUST fees and bills are paid in a timely manner.

k. Determination of dividends and net asset value of the Shares in accordance with the policies of CalTRUST and the JPA Agreement;

l. Provision of office space, equipment and personnel to administer CalTRUST;

m. Provision and maintenance of a CalTRUST website at www.caltrust.org;

n. Printing and distribution to Participants of the Information Statement and other documents;

o. Coordination of marketing activities and preparation and distribution of explanatory and promotional materials;

p. Performing agreed upon services necessary in connection with the administration of CalTRUST, including registrar, transfer agent and record keeper functions and accounting and clerical services;

q. Supervising third parties retained by the Administrator, if any, to perform any or all of the administrative and ministerial services listed above; and

r. Performance of any other service specified in the CalTRUST Information Statement at section VII.B. regarding administrative services, as amended from time to time.

As the CSAC Finance Corporation provides all services necessary to ensure the efficient operations of CalTRUST regardless of the limitations of the contract it is difficult to properly list all duties necessary, and provided, in the complete management of an organization. The list below outlines the services staff could identify that the CSAC Finance Corporation provides outside of the scope of the agreement, but is not necessarily all-encompassing:

• Complete management of request for proposals (RFP) processes for service providers including development and drafting of the RFPs and management of the process;

• Development of new products, including the new Liquidity Fund; • Coordination of, and participation in processes, with consultants outside of the

scope of those listed in the agreement (ie: staffing analysis firm and branding/marketing firm);

• OnSite due diligence visits with both current and prospective service providers; • Providing all necessary staff report for both regular and special board meetings

(eg: travel arrangements, accommodations, structure, logistics, minutes); • Annual review and updating of the Information Statement, Investment Policy, and

Joint Exercise of Powers Agreement;

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• Coordination and management of webinar education programs; • Attendance at industry events and conferences; • Creation of annual budget and financial recommendations; • Coordination of, and participation in, meetings with both current and perspective

participants; • Staffing of CalTRUST committees; • Legislative reviews of government investment code; • Driver of service level improvements with contractors (ie: improvements to

statements, online trading platform); • Creation and distribution of monthly newsletter; • Onboarding of new participants and updating of participant documentation.

RECOMMENDATION: Information Only.

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Agenda Item: 4. Management Partners Organizational Analysis Review

Action Item Presented By: Mary Neilan, Jim Steele, & Steve Toler BACKGROUND: Attached please find the slide deck outlining Management Partners’ observations and preliminary recommendations on the organizational analysis they are performing. RECOMMENDATION: It is recommended that the Board consider the recommendations and select a model with which to move forward.

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Investment Trust of California (CalTRUST)Organizational Analysis

Observations and Preliminary Recommendations

September 18, 2018

Steve Toler, Project DirectorMary Neilan, Project Manager

Jim Steele, Special Advisor

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Agenda

2

Introduce Management

Partners

Review project goal and process

Present major

themes and observations

Present preliminary recommen-

dations

Hear board discussion/ feedback

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of California cities with more than 100,000 peopleServed

70%

of service exclusively to local governments24years

About Management Partners

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including generalists and subject-matter experts80+associates

successfully completed in 42 states

Over

1,500projects

in San Jose and Costa Mesa, CA and Cincinnati, OH

3national offices

Services• Operations Improvement• Strategic Planning• Service Sharing• Financial Planning/Budgeting• Organization Analysis• Organization Development• Performance Management• Process Improvement• Facilitation and Training• Executive Recruitment• Executive Coaching

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CalTRUST – A Public Agency

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An Innovative Partnership – Helping public agencies pool their assets for investment

Skilled and Knowledgeable Advisors – Over 185 years of investment and policy making experience

Great Account Offerings – Varying liquidity to help meet all agencies’ investment needs

Easy, Hassle-Free Participation – Available to any California county, city, special district or other public agency

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Three Pillars of Success

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SafetySafeguard preservation of principal, consistent with California law

LiquiditySame-day, next-day and three-day liquidity to meet participants’ needs

YieldMaximize yield consistent with safety and liquidity

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CalTRUST Products

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Liquidity Fund

Short Term Fund

Medium Term Fund

Money Market Fund

Government Fund

60-day

Same day liquidity

AAAm S&P rating

0 to 2 year

Same day liquidity

AAf S&P rating

1.5 to 3.5 year

Two-day liquidity

A+f S&P rating

25-day average maturity

Same day liquidity

AAAm S&P rating

37-day average maturity

Same day liquidity

AAAm S&P rating

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Size and Growth Trends

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$-

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

2003 2005 2007 2009 2011 2013 2015 2017

Ass

ets

in B

illio

ns

Program Assets

0

25

50

75

100

125

150

2003 2005 2007 2009 2011 2013 2015 2017

Part

icip

ants

Program Participants

Since 2003 CalTRUST has grown to over $2.75 billion in assets and more than 135 participants

Participant growth has placed demands on administrative requirements

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CalTRUST Structure

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Program administrator

(CSAC-FC)

Program administrator

(CSAC-FC)

Chair/PresidentBoard of trusteesChair/President

Board of trustees

Potential members/ Participants

Potential members/ Participants

Service providers(Blackrock, Gemini,

US Bank)


US Bank)

Members/ParticipantsMembers/

Participants

CalTRUSTOrganizational Structure

Kyle Tanaka100%

CalTRUST

Laura Labanieh

50% CalTRUST

Alan Fernandes and Sendy Young5% CalTRUST each

CSAC-FC CalTRUST Workload

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CSAC-Finance Corporation Structure

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Alan FernandesCEO

Alan FernandesCEO

CSAC-FCBoard of Trustees

CSAC-FCBoard of Trustees

Kyle TanakaMember Services

Associate

Kyle TanakaMember Services

Associate

Sendy YoungExecutive Assistant

Sendy YoungExecutive Assistant

Laura LabaniehDirector of Operations

Laura LabaniehDirector of Operations

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Organizational analysis to determine the optimal structure for the administration of the program

Project Purpose

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Project Approach

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2. Document review

1. Interviewsa. Trusteesb. Participantsc. Service

providers

3. High level workload study

4. Gap analysis

5. Observations and preliminary recommendations

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Major Themes fromInterviews and Research

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CalTRUST Services

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Good investment options

Access to investment advisor

Education and market analysis

Useful online tools to complete transactions and obtain information and reports

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CalTRUST Operations

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High demand on staff time (e.g., recent transition to new service providers)

Administrator is not an investment professional/ advisor; creates unique challenges in role

Compliance monitoring needs improvement

Responsiveness is suffering

Limited information available on website

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CalTRUST Marketing

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Effectiveness of marketing efforts is a concern

Service providers welcome a greater role to assist CalTrust with its marketing and growth initiatives

Growth lacks strategic focus

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Since its inception, CalTRUST has grown considerably in number of participants and assets.

This has resulted in challenges and unmet needs.

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Limited staff at CSAC-FC with multiple programs to manage

Wide range of responsibilities for program administrator; more focus needed

Little redundancy in organization (no backup for staff)

Lack of written policies and procedures

Observations

23

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Addressing short-term operational issues leaves little time to improve organizational efficiency, transparency and productivity

Recent problems with contractor’s reporting indicate need for increased monitoring and quality assurance

Improved communication is needed between administrator, service providers and participants

Observations

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19

Gap AnalysisOpportunities for Improvement in Administrator’s Role

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Gap Analysis

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Contract Administration Building new relationships requires capacity Benefitting from new relationships requires coordination

Participant Services Some participants look to CalTRUST for investment guidance Participants would benefit from additional education

Marketing Trustees desire a marketing plan Service providers are willing to support marketing

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Gap Analysis

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Risk Management CalTRUST must ensure compliance with investment policies and

investment advisor practices Participant materials should clearly outline fund risks Withdrawals to and from certain funds may need gatekeeping

Board Development Board roles need to be clarified and formalized Board procedures and protocols need to be formalized

Strategic Planning Strategic plan is needed for clear direction and clarity on growth Long-term planning requires considerable staff resources

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Organizational Structure Alternatives

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Alternative 1: Retain Current Structure

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Amend agreement with CSAC-FC to clarify duties and include performance standards

Program Administrator

(CSAC-FC)


(CSAC-FC)

Chair/PresidentBoard of TrusteesChair/President

Board of Trustees

Potential Members/ Participants


Service Providers(Blackrock, Gemini,

US Bank)


US Bank)


Participants

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Alternative 1: Retain Current Structure

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Provides continuity Builds on in-house expertise and historical knowledge

Current structure overtaxes CSAC-FC staff Service gaps may not be fully addressed Executive leadership in CalTRUST still lacking

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Alternative 2: CalTRUST Direct Hire

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Executive DirectorExecutive Director


Board of Trustees

Administrative Support


Member ServicesMember Services MarketingMarketing




US Bank)


US Bank)


Participants

CalTRUST employs all staff required to administer program

Executive Director


Member Services

Marketing

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Alternative 2: CalTRUST Direct Hire

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Provides executive leadership for organization Delegated authority and responsibility to executive director for hiring, contracting

services, and engaging with participants and service providers Direct accountability to Board Direct accountability between executive director and administrative staff

Creation of employment relationship, job specifications, competitive compensation and benefits package, and personnel policies/rules

Executive director position may be challenging to fill Loss of historical knowledge with existing administrative staff and relationships with

clients and service providers Ramp-up time required for administration, establishing policies and working

relationships

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Alternative 3: Contract with Participating Agency for Services

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Participating agency/ agencies provide required services

Management

Marketing

Member Services

Administration

Contracted MemberContracted Member

Chair/President Board of TrusteesChair/President

Board of Trustees




US Bank)


US Bank)

Other ParticipantsOther Participants

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Alternative 3: Contract with Participating Agency for Services

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Builds on inhouse expertise of members Members have a greater stake in success Takes advantage of possible excess capacity of members Could be cost effective

Could be disruptive Likely to have a long transition time May be difficult for Board to oversee/monitor Diffuses reporting and accountability

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Preliminary RecommendationsAlternative 2 Hybrid – Hire an executive director, but continue to contract with CSAC-FC for marketing and administrative support

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Hire Executive Director

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CalTRUST Board hires executive director with mandate to address gaps and lead organization

Amend contract with CSAC-FC to provide administrative and marketing support


(CSAC-FC)


(CSAC-FC)

Executive DirectorExecutive Director




US Bank)


US Bank)


Participants


Board of Trustees

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Executive Director Qualifications

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Background in public sector investment – provides benefits to participants, strengthens relationships with service providers

Organizational development and professional management –provides strategic alignment with Board objectives, provides facilitation for Board strategic planning

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Benefits of Recommended Structure

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Singular focus on CalTRUST Defined role with established standards and

evaluation of performance Direct report to Board Improved accountability Ability to respond quickly to changing conditions Maintains historic relationship with CSAC-FC for

identity and continuity of service

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Drawbacks of Recommended Structure

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Heavier Board involvement Initially

-Creating position

-Recruiting

-Establishing performance standards/expectations

Ongoing-Conducting regular performance evaluations

-Maintaining competitive compensation packages

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Drawbacks of Recommended Structure

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Potentially higher cost than existing contract (pending analysis of possible compensation package compared with existing contract)

Long initial transition period

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Implementation Steps

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Establish job responsibilities, duties and performance standards for executive director

Initiate recruitment process Appoint a Board subcommittee for executive director

recruitment and performance review

Amend agreement with CSAC-FC Modify responsibilities and set performance standards

Revise financing model to support augmented staffing structure

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Implementation Steps

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Amend JPA agreement to reflect new organizational structure

Work collaboratively with executive director on strategic planning process

Clarify growth expectations and role of service providers for marketing

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Next Steps

Obtain feedback from Board members on today’s presentation

Conduct additional analyses to support Board’s evaluation of alternatives

Develop project memorandum

Present final project memorandum to Board

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43

38

Questions?

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Thank You!

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Contact Information

Steve Toler, Senior Manager(650) 918-7017 | [email protected]

Mary Neilan, Senior Manager(707) 799-6655 | [email protected]

Jim Steele, Special Advisor(408) 771-1131 | [email protected]

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Agenda Item: 7. Board of Trustees

Action Item

a. Board Resignations b. Board Size c. Product Review Committee d. California Special Districts Association Recommendation

Presented By: Laura Labanieh & Chuck Lomeli a. Board Resignations BACKGROUND: Trustees Geoffrey Kiehl and Brian Mayhew have both submitted resignations via electronic notification since the April 2018 meeting of the CalTRUST Board of Trustees. RECOMMENDATION: It is recommended that the Board officially acknowledges receipt of the resignations of Trustees Kiehl and Mayhew pursuant to Article II, Section 2.3 of the CalTRUST Joint Exercise of Powers Agreement. b. Board Size BACKGROUND: Trustee Lomeli requested that the Board discuss the appropriate size of the Board of Trustees. Currently, the CalTRUST Joint Exercise of Powers Agreement reads as such: Article II. Section 2.2 Number, Qualification, Election and Term of Trustees. The number of Trustees shall be fixed from time to time by resolution of the Board; provided, however, that the number of Trustees shall not be fewer than three (3) and not greater than fifteen (15). At least seventy-five percent (75%) of the Trustees shall be members of the governing body, officers or personnel of the Members (each, a “Member Trustee”). The Trustees shall be nominated by the Board and approved by a majority of the Members. RECOMMENDATION: It is recommended that the Board discuss the appropriate size and composition of the Board of Trustees and direct staff to prepare a Resolution or an update to the Joint Exercise of Powers Agreement if necessary.

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c. Product Review Committee BACKGROUND: The Product Review Committee is down to two Trustees; John Colville and Chuck Lomeli. The Committee previously had four members; the additional two being Dave Ciapponi and Brian Mayhew. Staff would recommend that at least one additional Trustee be appointed to the Committee. RECOMMENDATION: It is recommended that the Board discuss who would like to serve on the Committee. d. California Special Districts Association Recommendation BACKGROUND: The California Special Districts Association has submitted a letter recommending that the CalTRUST Board of Trustees consider nominating Geoffrey Kiehl, now with Coachella Valley Water District, should the district become a participant in CalTRUST. The recommendation has not been provided to the Nominating Committee nor Board since Coachella Valley Water District is not, and has never been, a participant of CalTRUST. Kiehl has indicated that he is unsure if and when the district will use the program. Should the Coachella Valley Water District become a CalTRUST participant the recommendation and participant information shall then be forwarded to the Nominating Committee and Board for consideration. RECOMMENDATION: Information only.

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Agenda Item: 8. Consider Minutes of the Previous Board Meetings

Action Item Presented By: Dan McAllister BACKGROUND: Following are the Minutes of the CalTRUST Board of Trustees Meetings of April 17-18, 2018 and June 25, 2018. RECOMMENDATION: It is recommended that the Board approve the CalTRUST Board of Trustees Meeting Minutes of April 17-18, 2018 and June 25, 2018.

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CalTRUST Board of Trustees Meeting

April 17-18, 2018 Hyatt Indian Wells, Indian Wells, CA

MINUTES

April 17, 2018 The meeting was called to order by President McAllister at 2:41pm. 1. Roll Call

__X__ Dan McAllister (President), San Diego County _____ John Colville (Secretary), City of Sacramento __X__ Don Kent (Treasurer), Riverside County _____ Dave Ciapponi, Westlands Water District __X__ Geoffrey Kiehl, City of Palm Springs __X__ Charles Lomeli, Solano County __X__ Brian Mayhew, Bay Area Toll Authority __X__ Matt McCue, Mission Springs Water District __X__ Russell “Rusty” Watts, Contra Costa County (via teleconference) __X__ Mary Zeeb, Monterey County

Other Attendees:

Tim Banach U.S. Bank Amanda Cadelago League of California Cities Norman Coppinger League of California Cities Alan Fernandes CSAC Finance Corporation Ron Hill BlackRock Laura Labanieh CSAC Finance Corporation Neil McCormick California Special Districts Association Tom Musmanno BlackRock Charlie Praska BlackRock Jon Reiners Gemini Fund Services Kyle Tanaka CSAC Finance Corporation Rick Wood California Special Districts Association Katie Yockey Gemini Fund Services Sendy Young CSAC Finance Corporation

2. Welcome and Introductions

President McAllister welcomed everyone and self-introductions ensued. President McAllister held a moment of silence to honor CalTRUST Founder and Trustee Dave Ciapponi who passed away on April 13, 2018.

3. Review of CalTRUST Retreat Laura Labanieh provided an overview of the facilitator’s interpretations and notes from the January CalTRUST Board Retreat.

4. Administrative Structure

a. Review of Current Structure & Agreement

Laura Labanieh provided an overview on the two contracts that CalTRUST holds with the CSAC Finance Corporation; one for administration and one for sponsorship. Alan

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Fernandes noted that the CSAC Finance Corporation is currently providing services that are outside the Description of Services outlined in the Administrative Agreement.

b. Staffing Analysis Laura Labanieh presented that the ad hoc committee appointed to research firms to provide staffing analysis had directed staff to begin the process of conducting an RFP for the staffing analysis firm. Trustee Lomeli noted that the Board still needs to identify and be able to articulate what services they are missing. It was suggested that more time be allowed for firms to respond to the RFP than outlined in the original timeline. Per Board direction, the committee should narrow down the proposals and present 2-3 finalists to the Board to interview in June.

c. Alternative Options Alan Fernandes recommended that the Board consider modifying the current administrative agreement to become a fixed fee which would allow the board to hire an Executive Director directly. Laura Labanieh recommended in addition to this alternative option that the Board consider hiring a 3rd party compliance officer. Trustee Lomeli opined that he is happy with the current model. The Board directed staff to bring forth a proposal at a June special meeting with an alternative administration model.

5. Board Growth & Development

a. Trustee Criteria The existing Trustee criteria and Board composition policy was presented to the Board. Alan Fernandes suggested that the word “appointed” be changed to “recommends” in Section 2.2 of the Joint Exercise of Powers Agreement to clarify that the Trustees are in fact appointed by the JPA members and it is not a self-appointing Board.

b. Appointment Policy The Board did not take action to formalize an appointment policy.

c. Officer Seats The Board discussed the role of Vice President and decided that the position was not relevant at this time. The Board adopted an amendment to Board Policy to specify that the officers of the Board would rotate every two years.

Motion: C. Lomeli Second: D. Kent Approved via roll-call vote.

d. Nominating Committee President McAllister and Trustee Zeeb encouraged the Board to seek gender and ethnic diversity when considering candidates to fill open seats on the Board. Trustees Kiehl, Watts, and Zeeb were appointed to serve on a Nominating Committee. The Nominating Committee will vet and bring forward nominations for new Trustees and officers.

6. Emergency Action Procedure

Laura Labanieh presented the draft Emergency Action Approval Procedure that the Board had previously directed staff to bring forth for consideration. No action was taken.

7. Adjourn to Closed Session Pursuant to Government Code 54956.9(d)(2), the Board held a closed session to discuss anticipated litigation. No action was taken in closed session.

A public report out that no action was taken during closed session was provided and the Board of Trustees recessed at 5:05pm. April 18, 2018

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The meeting was called to order by President McAllister at 8:33am. 8. Roll Call

__X__ Dan McAllister (President), San Diego County _____ John Colville (Secretary), City of Sacramento __X__ Don Kent (Treasurer), Riverside County (via teleconference) _____ Dave Ciapponi, Westlands Water District __X__ Geoffrey Kiehl, City of Palm Springs __X__ Charles Lomeli, Solano County __X__ Brian Mayhew, Bay Area Toll Authority __X__ Matt McCue, Mission Springs Water District __X__ Russell “Rusty” Watts, Contra Costa County (via teleconference) __X__ Mary Zeeb, Monterey County

Other Attendees:

Tim Banach U.S. Bank Amanda Cadelago League of California Cities Alan Fernandes CSAC Finance Corporation Richard Forster Amador County / CSAC Finance Corporation Ron Hill BlackRock Mike Johnson CSAC Finance Corporation Laura Labanieh CSAC Finance Corporation Neil McCormick California Special Districts Association Leonard Moty Shasta County / CSAC Finance Corporation Susan Muranishi Alameda County / CSAC Finance Corporation Tom Musmanno BlackRock Charlie Praska BlackRock Jon Reiners Gemini Fund Services Billy Rutland Rutland Group / CSAC Finance Corporation Kyle Tanaka CSAC Finance Corporation David Twa Contra Costa County Rick Wood California Special Districts Association Katie Yockey Gemini Fund Services Sendy Young CSAC Finance Corporation

9. Consider Minutes of the Previous Board Meetings

The Board approved the CalTRUST Board of Trustees Meeting Minutes of September 13, 2017, December 22, 2017, 24-25, 2018 with a minor punctuation correction on #7 of the September minutes.

Motion: M. Zeeb Second: C. Lomeli Approved via roll-call vote.

10. CalTRUST Board of Trustees

a. Consider Election of Officers No action was taken.

b. Consider Resolution to Conduct Business/Delegation of Duties The Board approved the Board of Trustee’s Resolution to Conduct Business/Delegation of Duties.

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Motion: B. Mayhew Second: G. Kiehl Approved via roll-call vote.

11. Review and Consider CalTRUST Documents

a. Investment Policy

The Board reaffirmed the CalTRUST Investment Policy. Motion: C. Lomeli Second: R. Watts Approved via roll-call vote.

b. Information Statement The Board approved the amended Information Statement as presented with the additional change of removing Dave Ciapponi from the Board listing and confirming the accuracy of all links.

Motion: R. Watts Second: D. Kent Approved via roll-call vote.

c. Joint Exercise of Powers Agreement The Board approved the following changes to Article II, Section 2.2 of the Joint Exercise of Powers Agreement: • Change “Trustees shall be appointed” to “Trustees shall be nominated” • Strike the last sentence, “Except in the event of resignations, Disqualifications or

removals pursuant to Section 2.3, each Trustee shall hold office until his or her successor is appointed by the Board and approved by a majority of the Members.”

Motion: G. Kiehl Second: D. McAllister Approved via roll-call vote.

12. Legislative Changes Alan Fernandes and Ron Hill presented legislative changes that BlackRock has recommended. Absent negative feedback from the Board, staff will begin to work with other stakeholders including the California Association of County Treasurers and Tax Collectors and the other CalTRUST sponsors to pursue some or all of the suggested changes

13. Consider CalTRUST Budget for FY 2018-2019 Laura Labanieh presented the Draft FY 18-19 budget and provided the Board a 12-month breakdown of sponsorship fees as had been previously requested. The Board approved the FY 18-19 budget as presented.

Motion: M. Zeeb Second: B. Mayhew Approved via roll-call vote.

14. U.S. Bank Update Tim Banach reported that U.S. Bank was recognized as one of the world’s most ethical companies for the fourth consecutive year..

15. Gemini Update Katie Yockey provided the Board with an update on fund balances and transactions completed since September 1, 2017. The Board discussed the increase in online trading as well as barriers to online trading.

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Staff circulated copies of the updated participant statements, which now reflect monthly unrealized gain/loss for the Board to review and discuss if there were additional changes they would like to see. Laura Labanieh reported that on March 1st Gemini had committed to include interest earned since inception but Gemini had not followed-up on that request in a timely manner. Katie was unsure of the details but estimated a six-week timeline for that addition and indicated that there would be an additional cost to CalTRUST. Trustee Lomeli asked if Gemini could provide a total return component on the statements as well. Katie was unsure of their ability to do so but promised to follow-up with staff. Laura Labanieh reported that the Product Review Committee held a meeting with Gemini legal counsel regarding their SEC settlement. The Board requested that Gemini provide a copy of the report of their independent internal procedures audit they must perform per the settlement to the CalTRUST Trustees. Gemini staff was unsure if that was possible but will follow-up. Trustee Lomeli reported the committee’s recommendation was to re-issue an RFP for fund accounting services. The Board took action to initiate an RFP for fund accounting/record keeping services. Motion: C. Lomeli Second: B. Mayhew Approved via roll-call vote.

16. Investment, Market & Portfolio Strategy Update & Review

a. Interest Rate & Economic Overview

Tom Musmanno provided a market update to the Board. Tom spoke about expectations for the Fed in 2018 and how the market is positioning future interest rate hikes.

b. Short-Term Fund Tom discussed positioning of the CalTRUST Short-Term Fund and noted that even with the market place volatility that the fund has achieved a positive total return to begin the year.

c. Medium-Term Fund Laura Labanieh reported that staff and BlackRock have focused on educating existing participants about the CalTRUST Medium-Term Fund. Trustee Lomeli suggested that there should be an educational component tied to the fund so that new investors fully understand the purpose of the fund prior to investing. Trustee Lomeli also recommended that staff contact all participants in the fund and make them aware of how rising interest rates affect the fund. Per the Board’s direction, new participants in the Medium-Term fund will be required to certify that they understand the floating NAV and potential volatility of the fund. Staff will work with BlackRock and Gemini to put procedures and a medium-term fund educational component in place.

d. Prime Money Market Fund Ron Hill provided an update on the BlackRock TempFund. BlackRock recommends that once the new ultra-short fund is launched that CalTRUST consider removing the TempFund as an offering.

e. Government Money Market Fund Ron Hill provided an update on the BlackRock FedFund.

f. New Ultra-Short Fund

Laura Labanieh reported that staff continues to work with BlackRock, Gemini, and U.S. Bank on establishing the new GASB 79 compliant, 2A7 look-alike fund and have been actively discussing the fund with existing and potential participants. Ron Hill provided a sample model portfolio of what the fund would look like and how it would operate. Laura indicated that the target launch date for the fund is July 1, 2018. The new fund will be named the CalTRUST Liquidity Fund by BlackRock.

54

17. Client Update & Marketing

Laura Labanieh discussed the current outreach staff has taken to visit existing participants and potential new participants.

18. Future Meetings A special meeting will be held in June to discuss the staffing analysis proposals, alternative staffing model proposal, documentation for the new fund, and the operational adjustments regarding the medium-term fund. The meeting will be held via teleconference. Staff will circulate possible dates to the Board to find a time that works best.

19. Other Business No other business was discussed.

20. Public Comment

There was no public comment. 21. Adjourn

The meeting was adjourned at 11:16 am.

55

CalTRUST Special Meeting

June 25, 2018 Teleconference

MINUTES

The meeting was called to order by President McAllister at 12:04 pm. 1. Roll Call

__X__ Dan McAllister (President), San Diego County _____ John Colville (Secretary), City of Sacramento __X__ Don Kent (Treasurer), Riverside County _____ Geoffrey Kiehl, City of Palm Springs __X__ Charles Lomeli, Solano County __X__ Brian Mayhew, Bay Area Toll Authority __X__ Matt McCue, Mission Springs Water District __X__ Russell “Rusty” Watts, Contra Costa County __X__ Mary Zeeb, Monterey County

Other Attendees:

Alan Fernandes CSAC Finance Corporation Matthew Giunta BlackRock Ron Hill BlackRock Edward Ingold BlackRock Brian Caynan BlackRock Laura Labanieh CSAC Finance Corporation Neil McCormick California Special Districts Association Bobbie Ormonde Westlands Water District Charlie Praska BlackRock Kyle Tanaka CSAC Finance Corporation Rick Wood California Special Districts Association Katie Yockey Gemini Fund Services Kim Lapsley BlackRock

2. Consider New Trustee Nomination

Laura Labanieh reported that the Nominating Committee had reviewed Bobbie Ormonde, Westlands Water District, candidacy and recommended that the Board nominate Bobbie to serve as Trustee. The Board took action to nominate Bobbie Ormonde to the CalTRUST Board of Trustees and directed staff to ratify the nomination by seeking the approval from the CalTRUST JPA members as outlined in the JPA Agreement. Motion: M. Zeeb Second: B. Mayhew Approved via roll-call vote.

3. Medium-Term Fund Restriction Update & Discussion Laura Labanieh updated the Board on the medium-term fund transaction restrictions and steps that have been taken to ensure that participants understand the floating net asset value (NAV) characteristic of the fund. The Board did not express concerns with the planned action to remove the block on online trading. The online trading block will be lifted and disclosure language will be added to the platform reminding participants of the floating NAV.

56

4. Liquidity Fund Update Laura Labanieh and Ron Hill provided an update on the CalTRUST Liquidity Fund. Laura announced that a marketing campaign was underway and that the Fund would open to all CalTRUST participants on July 2, 2018. Ron reviewed the fund characteristics.

5. Consider Updated Documents

a. Investment Policy The Board approved the revised CalTRUST Investment Policy as presented to include the CalTRUST Liquidity Fund. Motion: J. Colville Second: D. Kent Approved via roll-call vote.

b. Information Statement The Board approved the revised CalTRUST Information Statement as presented to include the CalTRUST Liquidity Fund.

Motion: J. Colville Second: D. Kent Approved via roll-call vote.

6. Consider CSAC FC Alternate Structure Proposal

As requested in a previous Board meeting, Alan Fernandes presented an alterative staffing structure proposal. Trustee Mayhew expressed that the Board should not consider the proposal until the Staffing Analysis RFP had been completed and made a motion to defer action indefinitely. There was no second on the motion and the motion was withdrawn. No action was taken.

7. Consider Staffing Analysis Proposals Laura Labanieh presented the Board with the proposal received from Management Partners for the Staffing Analysis RFP, the only proposal that was received. The Board took action to accept the proposal and have the ad hoc analysis committee begin working with Staff in coordinating the analysis. Motion: R. Watts Second: B. Mayhew Abstain: M. Zeeb Approved via roll-call vote. Bobbie Ormonde was added to the Committee to work with Management Partners on the process.

8. Staff Updates

Gemini has completed their compliance audit per their settlement with the Securities and Exchange Commission. The audit itself has not been shared with CalTRUST but Gemini compliance did provide a letter to CalTRUST discussing the audit and that letter has been forwarded to the Board of Trustees. The next CalTRUST webinar will be held on July 25th and will include a discussion of bank credit analysis.

9. Other Business No other business was discussed.

10. Public Comment

There was no public comment. 11. Adjourn

The meeting was adjourned at 12:58 pm. 57

Agenda Item: 9. Conflict of Interest Code

Action Item Presented By: Laura Labanieh BACKGROUND: Per California law, conflict of interest codes must be submitted to, and approved by, the Fair Political Practices Commission (FPPC) on a biennial basis. The FPPC advised that the previously adopted 2004 CalTRUST Conflict of Interest Code was still compliant and should be retained in lieu of going through an unnecessary review and administration process. RECOMMENDATION: It is recommended that the Board review and ratify the 2004 Conflict of Interest Code as already approved and made effective by the Fair Political Practices Commission.

58

CONFLICT OF INTEREST CODE

OF THE

INVESTMENT TRUST OF CALIFORNIA, A PUBLIC JOINT POWERS AUTHORITY

The Political Reform Act (California Government Code Section 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation, 2 California Code Regulations Section 18730 (the "Regulation"), which contains the terms of a standard conflict of interest code that can be incorporated by reference in any agency's code. After public notice and hearing, the Regulation may be amended by the Fair Political Practices Commission to conform to the amendments in the Political Reform Act. Therefore, the terms of the Regulation and any amendments thereto duly adopted by the Fair Political Practices Commission are hereby incorporated in this Conflict of Interest Code by reference. The Regulation and the attached Appendix designating officials and employees and establishing disclosure categories shall constitute the Conflict of Interest Code of the Investment Trust of California, a Public Joinl Powers Authority ("Ca/TRUST").

Designated officials and consultants shall file their statements of economic interest with Ca/TRUST, who will make the statements available for public inspection and reproduction. (California Government Code Section 81008). Statements for all designated employees will be retained by Ca/TRUST.

Approved by the Board of Trustees of Ca/TRUST on _,f;'""LJ�G�/�·j��,l._�73"-+-•' ��/::1�'/;�·-3�--

DOCSSCL321636.l

59

APPENDIX

TO

CONFLICT OF INTEREST CODE OF THE

INVESTMENT TRUST OF CALIFORNIA, A PUBLIC JOINT POWERS AUTHORITY

Designated Positions

Consultants 1 •

LIST OF DESIGNATED POSITIONS

Discl osure Categorv

Category 1

Public Officials Who Manage Public Investments

The following positions are NOT covered by this Conflict of Interest Code because they must file under California Government Code Section 87200 and, therefore, are listed for informational purposes only:

• Trustees

• Chairman, President, Treasurer and Secretary

• Consultants1

An individual holding one of the above listed positions may contact the Fair Political Practice Commission for assistance or written advice regarding their filing obligations if they believe that their position has been categorized incorrectly. The Fair Political Practices Commission makes the final determination whether a position is covered by Section 87200.

Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the code subject to the following limitation: The Chaim1a11 of the Board of Trustees may determine in writing that a particular consultant, although a "designated position" is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in Cal. Govt. Code Secrion 87200 and following. Such written detennination shall include a descriprion of the consultant's duties and, based on such description, a staten1ent of the extent of disclosure requirements, if any. The Chainnan's written determination is a public record and shall be retained for public inspection in the same manner and location as the Conflict of Interest Code.

DOCSSCI 321636.1 60

DISCLOSURE CATEGORIES

Category 1: Persons in this category shall disclose all investments, business positions in business entities, and sources of income which are of the type in which the Investment Trust of California is empowered to invest its funds.

DOCSSCJ :321636.J

61

This is the last page of the conflict of interest code for the Investment Trust of

California.

CERTIFICATION OF l''PPC APPROVAL

Pursuant to Government Code Section 87303, the conflict of interest code for the Investment Trust of California was approved on March 2004. The code will be e ective on April , 2004.

Mark Krausse Executive Director Fair Political Practices Commission

62

Agenda Item: 10. Budget Update FY 2018-19

Action Item Presented By: Laura Labanieh BACKGROUND: The FYE 18 budget is attached. CalTRUST maintains a healthy reserve balance of $425,061. Per the Board’s adopted reserve policy, CalTRUST has $199,061 in excess reserves. The CalTRUST Board discussed the use of the excess reserves to cover the unbudgeted costs of the staffing analysis but did not take formal action. The Management Partners contracted fees are anticipated to be $44,500. RECOMMENDATION: It is recommended that the Board authorize the use of the excess reserves for the Management Partners contract and fees related to the staffing analysis.

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Budget1 FYE18Actual Budget2

17/18 17/18 18/19CalTRUSTFundExpenses(ManagementIncome)3

InvestmentManagementFee3,9 1,300,000$ 1,661,868$ 1,850,000$AdministrationFee3,12 520,000 670,119 780,000FundAccountingFee3,9 275,000 434,187 375,000CustodianFee3 74,500 94,349 107,500OperatingFee3,10,11 600,000 788,458 900,000

TotalFundFees 2,769,500$ 3,648,981$ 4,012,500$- -

-CalTRUSTOperatingFeeBudget 600,000$ 788,458$ 900,000$

ExpensesAuditServices 23,000$ 4,293$ 23,000$BoardTravel 35,000 38,468 35,000LegalServices 50,000 121 50,000InsurancePremiums 10,000 - 10,000FilingCosts - - -RatingAgencyFees 35,000 37,470 45,000ProgramMarketing 25,000 20,192 25,000EndorsementFees 400,000 525,639 600,000OtherMeetings 16,000 15,992 16,000SpecialProjects 29,163 12,500 16,500ContingencyFund 5,000BankFees 500 115 500

TotalExpenses 623,663$ 654,790$ 826,000$EndingBalance (23,663)$ 133,668$ 74,000$

ReserveBalance 315,056$ 291,393$ 425,061$AnnualGain/(loss) (23,663) 133,668 74,000EndingReserveBalance 291,393$ 425,061$ 499,061$

64

1 BudgetBasedon$2Billionsplit$1.5BinSTand$500milinMT2 ProposedBudgetbasedon$3BillionevenlysplitbetweenShort-andMedium-TermFunds.3 FeeSchedules

Short-TermFund Medium-TermFund

Upto$100m-.10%$100m-$250m-.08%$250m-$500m-.06%$500m-$1b-.05%Over$1b-.04%

Upto$100m-.13%$100m-$250m-.10%$250m-$500m-.08%$500m-$1b-.06%Over$1b-.05%

FundAccountingCustodyAdministrativeOperatingExpenses

3 Short-andMedium-TermFundFees9 OnlyhavethesetotalsstartingwithFY12-1310 BegantakingoperatingfeeinFY13-1411 OperatingFeechangeto3bpsforFY15-1612 AdministrationFeechangeto2.6bpsforFY17-18

InvestmentMgmt

Upto$500m-.02%Upto$500m-.005%

0.026%0.03%

65

Agenda Item: 13. Fund Accounting/Recordkeeping Update

Information Item Presented By: Katie Yockey, Jon Reiners, & Chris Baird BACKGROUND: In April 2018, the CalTRUST Board of Trustees directed staff to pursue a bid process with the Products Review Committee for fund accounting/recordkeeping services in light of Gemini entering into a preemptive settlement with the Securities and Exchange Commission (SEC). No timeline was set for the process and it was clear that Gemini was still eligible to rebid. The bid process will begin after CalTRUST concludes it’s organization analysis review process and finalizes future structural considerations. Gemini was requested to provide to the CalTRUST Board of Trustees their compliance report from the compliance audit they agreed to perform as part of their settlement. While the actual report was not provided, correspondence from the Gemini compliance team regarding the audit was submitted and shared with the Board of Trustees on June 25, 2018. Included for reference and discussion in this report is information on additional statement improvements, an examination of the error that occurred with Yuba County, and the Gemini trading report. RECOMMENDATION: Information and discussion.

66

Month Ending CalTRUST Short Term Fund CalTRUST Medium Term Fund CalTRUST Liquidity Fund BlackRock FedFund BlackRock TempFund Total Change4/30/2018 1,663,653,143.81$ 1,057,789,199.80$ ‐$ 37,314,805.18$ 26,330,418.88$ 2,785,087,567.67$ 14,480,658.50$ 5/31/2018 1,643,465,390.35$ 1,053,341,234.04$ ‐$ 62,588,956.48$ 26,337,823.93$ 2,785,733,404.80$ 645,837.13$ 6/30/2018 1,533,273,322.37$ 989,468,743.97$ 25,002,378.73$ 65,815,815.65$ 27,340,504.02$ 2,640,900,764.74$ (144,832,640.06)$ 7/31/2018 1,426,820,915.12$ 979,766,353.50$ 116,693,166.50$ 59,457,871.37$ 26,339,999.61$ 2,609,078,306.10$ (31,822,458.64)$ 8/31/2018 1,419,984,253.60$ 992,061,330.65$ 155,408,639.07$ 60,695,907.18$ 1,342,329.11$ 2,629,492,459.61$ 20,414,153.51$

Month End Assets67

Amounts and Quantities for the period between April 1, 2018 and August 31, 2018Amounts CalTRUST Short Term Fund CalTRUST Medium Term Fund CalTRUST Liquidity Fund BlackRock FedFund BlackRock TempFund Combined Totals

Purchases 391,399,247.00$ 21,340,465.52$ 213,733,108.50$ 394,215,616.50$ 1,000,000.00$ 1,021,688,437.52$ Redemptions (575,903,852.82)$ (118,105,278.32)$ (58,517,083.71)$ (403,550,000.00)$ (26,002,901.34)$ (1,182,079,116.19)$ Dividends 12,816,628.11$ 8,569,492.20$ 291,821.63$ 404,310.57$ 202,543.82$ 22,284,796.33$ Total (171,687,977.71)$ (88,195,320.60)$ 155,507,846.42$ (8,930,072.93)$ (24,800,357.52)$ (138,105,882.34)$

Quantities CalTRUST Short Term Fund CalTRUST Medium Term Fund CalTRUST Liquidity Fund BlackRock FedFund BlackRock TempFund Combined TotalsPurchases 37 12 18 46 1 114Redemptions 121 22 5 63 2 219Dividends 621 617 20 65 22 1089Total 779 651 43 174 25 1422

Transaction Data68

Trade Entry Statistics for the period between April 1, 2018 and August 31, 2018

Customer Name Account RegistrationTrades Entered NorthStar Participant

SOLANO COUNTY SOLANO COUNTY TREASURER TAX COLLECTOR ‐ COUNTY CLERK 48 3 45SACRAMENTO, CITY OF CITY OF SACRAMENTO 48 2 46RTA GENERAL OPERATING RTA GENERAL OPERATING 30 30 0SONOMA COUNTY SONOMA COUNTY TREASURER 15 0 15RTA TUMF RTA TUMF 11 11 0WESTLANDS WATER DISTRICT WESTLANDS WATER DISTRICT 10 0 10CONTRA COSTA COUNTY CONTRA COSTA COUNTY 8 0 8RTA PROP 1B SECURITY FY13 RTA PROP 1B SECURITY FY13 8 8 0HA OF THE CITY OF SANTA BARBARA HOUSING AUTHORITY OF THE CITY OF SANTA BARBARA 8 0 8ASSOC OF CALIFORNIA WATER AGENCIES ASSOCIATION OF CALIFORNIA WATER AGENCIES 7 0 7RIVERSIDE, CITY OF CITY OF RIVERSIDE 6 0 6CALIFORNIA SPECIAL DISTRI CALIFORNIA SPECIAL DISTRICTS ASSOC 6 1 5REGIONIAL GOVERNMENT SVS AUTH REGIONAL GOVERNMENT SERVICES AUTHORITY 6 0 6YUBA COUNTY YUBA COUNTY TREASURER 5 5 0MAMMOTH COMMUNITY WATER DISTRICT MAMMOTH COMMUNITY WATER DISTRICT 5 0 5HERLONG PUBLIC UTILITY DISTRICT HERLONG PUBLIC UTILITY DISTRICT 5 5 0DUDLEY RIDGE WATER DISTRICT DUDLEY RIDGE WATER DISTRICT 4 0 4EASTERN MUNICIPAL WATER EASTERN MUNICIPAL WATER DISTRICT 4 4 0LODI, CITY OF CITY OF LODI 4 0 4RIALTO/LEWIS, CITY OF CITY OF RIALTO/LEWIS 4 4 0MCKINLEYVILLE CSD MCKINLEYVILLE COMMUNITY SERVICES DISTRICT 4 4 0SALINAS VALLEY BASIN GROUNDWATER SALINAS VALLEY BASIN GROUNDWATER SUSTAINABILITY AGENCY 4 0 4GPSCVB GREATER PALM SPRINGS CONVENTION & VISITORS BUREAU 4 4 0COUNTY SUPERVISORS ASSOC COUNTY SUPERVISORS ASSOCIATION OF CA DBA CA STATE ASSOCIATION OF COUNTIES (CSAC) 3 2 1CPS HUMAN RESOURCE SERVIC COOPERATIVE PERSONNEL SERVICES DBA CPS HUMAN RESOURCE SERVICES 3 0 3SAN BERNARDINO, CITY OF CITY OF SAN BERNARDINO 3 3 0BEVERLY HILLS, CITY OF CITY OF BEVERLY HILLS, CALIFORNIA 3 0 3RIALTO/LEWIS‐MIRO WAY, CITY OF CITY OF RIALTO/LEWIS ‐ MIRO WAY 3 3 0FRESNO KINGS MADERA RHA DBA CALVIVA FRESNO KINGS MADERA REGIONAL HEALTH AUTHORITY DBA CALVIVA HEALTH 3 3 0RTA LCTOP OPERATING FY16 RTA LCTOP OPERATING FY16 3 3 0RIVERSIDE COUNTY RIVERSIDE COUNTY 2 2 0LEAGUE OF CALIFORNIA CITIES LEAGUE OF CALIFORNIA CITIES 2 2 0SUCCESSOR AGENCY TO CHINO RDA SUCCESSOR AGENCY TO CHINO REDEVELOPMENT AGENCY 2 1 1WATER FACILITIES AUTHORITY WATER FACILITIES AUTHORITY 2 2 0INLAND EMPIRE UTILITIES INLAND EMPIRE UTILITIES AGENCY 2 2 0MONTEREY COUNTY COUNTY OF MONTEREY 2 0 2YORBA LINDA WATER DISTRICT YORBA LINDA WATER DISTRICT‐WATER CAPITAL PROJECTS 2 2 0YORBA LINDA WATER DISTRICT YORBA LINDA WATER DISTRICT‐WATER OPERATING 2 2 0CSDA ADVOCACY FUND CSDA ADVOCACY FUND 2 1 1

Trade Entry Data69

Customer Name Account RegistrationTrades Entered NorthStar Participant

JAMES IRRIGATION DISTRICT JAMES IRRIGATION DISTRICT 2 2 0NORWALK, CITY OF CITY OF NORWALK 2 2 0BAY AREA TOLL AUTHORITY BAY AREA TOLL AUTHORITY 2 2 0SACRAMENTO REG TRANSIT DIST‐DEV FEE SACRAMENTO REGIONAL TRANSIT DISTRICT DEV FEES 2 2 0ROSAMOND COMMUNITY SVS DISTRICT ROSAMOND COMMUNITY SERVICES DISTRICT 2 0 2SANTA BARBARA SAN LUIS OBISPO REGIO SANTA BARBARA SAN LUIS OBISPO REGIONAL HEALTH AUTHORITY 2 0 2RIALTO/LEWIS‐ALDER, CITY OF CITY OF RIALTO/LEWIS ‐ ALDER 2 2 0RIALTO/LEWIS‐LAUREL,WALNUT,LOCUST CITY OR RIALTO/LEWIS ‐ LAUREL, WALNUT, LOCUST 2 2 0RTA LCTOP OPERATING FY18 RTA LCTOP OPERATING FY18 2 2 0CUTLER PUBLIC UTILITY DISTRICT CUTLER PUBLIC UTILITY DISTRICT 2 2 0CENTRAL CA ALLIANCE FOR HEALTH SANTA CRUZ‐MONTEREY‐MERCED MANAGED MEDICAL CARE COMMISSION DBA CENTRAL CALIFORNIA AL 2 2 0BEAUMONT‐CHERRY VALLEY WATER DISTR BEAUMONT‐CHERRY VALLEY WATER DISTRICT 2 0 2LEAGUE OF CA CITIES‐CITI PAC LEAGUE OF CALIFORNIA CITIES ‐ CALPERS PENSION OBLIGATION 2 2 0CSAC FINANCE CORPORATION CSAC FINANCE CORPORATION 1 0 1CHINO, CITY OF CITY OF CHINO 1 0 1SAN DIEGO, COUNTY OF COUNTY OF SAN DIEGO 1 0 1SAN DIEGO UNIFIED PORT DISTRICT SAN DIEGO UNIFIED PORT DISTRICT 1 1 0MONTEREY PENINSULA REG PA MONTEREY PENINSULA REGIONAL PARK DISTRICT 1 1 0SANTA ANA WATERSHED PROJ SANTA ANA WATERSHED PROJECT AUTH 1 0 1MIDWAY CITY SANITARY DISTRICT MIDWAY CITY SANITARY DISTRICT 1 0 1FALLBROOK REGIONAL HEALTH DISTRICT FALLBROOK REGIONAL HEALTH DISTRICT 1 1 0LEAGUE OF CA CITIES‐BALLOT MEASUR LEAGUE OF CALIFORNIA CITIES BALLOT MEASURE ADVOCACY 1 1 0VICTOR VALLEY WASTEWATER RECLAM AUT VICTOR VALLEY WASTEWATER RECLAMATION AUTHORITY 1 1 0DELANO, CITY OF CITY OF DELANO 1 1 0BELLFLOWER, CITY OF CITY OF BELLFLOWER 1 0 1SAN LUIS OBISPO COUNTY COUNTY OF SAN LUIS OBISPO 1 1 0RTA PROP 1B SECURITY FY14 RTA PROP 1B SECURITY FY14 1 1 0CA COVERAGE AND HEALTH INITIATIVES CALIFORNIA COVERAGE AND HEALTH INITIATIVES 1 1 0MISSION SPRINGS WATER DISTRICT MISSION SPRINGS WATER DISTRICT 1 1 0Grand Total 335 139 196

Trade Entry Data70

To: CalTRUST Board of Trustees From: Gemini Fund Services, LLC Date: September 4, 2018 Re: CalTRUST Statement Update

The statement requests made by CalTRUST and BlackRock (“BR”) to Gemini Fund Services, LLC (“Gemini”) are compiled and detailed below.

1. Add Income Since Inception to the statement. This request was made by CalTRUST and BlackRock. Income Since Inception is a calculation of all income paid since inception, for each individual fund/account, to be summed and shown in the Summary of Investments section of the statement. The development for this data pull has been completed and is in production. This field is not on the statements yet, as CalTRUST and BlackRock have asked for wholesale changes to the format/layout of the statements. FSSI (the print vendor for the statements) and Gemini want to make those changes in 1 programming project, rather than doing it piecemeal, which will allow for better QC of the process, as well as significantly lower programming costs from FSSI. The internal cost for the development of this was roughly $5,000.00 (not charged to CalTRUST or BlackRock).

2. Add performance calculations to the statement. Gemini is adding 2 separate performance calculation sections to the statement, per the requests of CalTRUST and BlackRock. Each item is listed separately below.

a. Add Overall Account Performance to the statement. The first request was to add the overall account level performance at 3 time intervals; Month to Date (“MTD”), Year to Date (“YTD”) and Inception to Date (“ITD”) to the statements. These calculations have been previously built for other clients, so there is no development charge to create the data file. We are able to use the existing data feeds from PowerAgent (Gemini TA recordkeeping system) to have these calculations available for the statement.

b. Add Fund Level Performance to the statement. In addition to the overall account performance mentioned in item 2a, CalTRUST and BlackRock then requested that Gemini also add performance calculations at the fund level to the statement (for each subaccount, and each fund within those subaccounts). MTD and YTD total return calculations already exist at the fund level with no need for additional programming. The CalTRUST and BlackRock request also includes ITD total return as well. The cost to add this is roughly $5,000.

c. Add Fund Level Performance to the statement, including Total Return, Income (Dividend)

Return and Price Change Return. In addition to the overall performance, and fund level performance, CalTRUST and BlackRock asked for Income Return and Price Change Return to be added to the statement as well, also in MTD, YTD, ITD. Gemini has not provided that type of performance reporting prior to this request from CalTRUST and BlackRock. Envision (the parent company behind PowerAgent) also does not have any other clients that offer this type of performance reporting. This means these calculations are being built from the ground up. The calculations for Income Return and Price Change Return had to be provided by BlackRock so Envision could estimate what the build-out would cost. The estimated cost for this project from Envision is $8,640. This includes the ITD Total Return from 2b, as well as the Income Return and Price Change Return at MTD, YTD and ITD.

d. Reformatting of the statement. Once all of the calculations are available in data files, the

statements will be reformatted by making the changes requested by CalTRUST and BlackRock,

71

including, Moving the participant name to the top of the statement, re-ordering the summary of investments section, adding the 2 performance sections, moving unrealized Gain/Loss from Detail of Transaction Activity up to the Summary of Investments section. The cost for this portion of the project is still TBD

e. Enhancing Statement Procedures at Gemini. Gemini’s statement process for CalTRUST will

go from 1 data file with all of the appropriate data points/calculations included, to 3 data files, which will contain the various data points being added, as well as the original data points that have been available since the conversion to Gemini. The new files will require the statement process to be enhanced to include all of the data files, and add multiple additional layers of Quality Control (“QC”) to ensure the statements continue to be provided accurately on the first business day of the month. This results in a cost of $1,600 (8 hours * $200/hour) from Gemini (not being charged to CalTRUST or BlackRock).

3. Cost Summary.

a. Income Since Inception - $5,000.00 (Not passed through to CalTRUST). b. Overall Account Performance – No programming cost to build the file. c. Fund Level Performance - $5,000.00 (This would not include anything in item d). d. Income Return, Price Change Return - $8,640.00 (Also includes item c). e. Reformatting of the statement – TBD (Vendor cannot determine until full specs/files are

available). f. Statement Procedure Enhancement - $1,600.00 (Not passed through to CalTRUST). g. TOTAL Pending Cost: $8,640.00 plus Statement Reformatting Fees (estimated $1,000-

$3,000).

Distribution: Kristin McCann CalTRUST Board Materials Kara Baird Alma Piscitello Katie Yockey

72

To: CalTRUST Board of Trustees From: Gemini Fund Services, LLC Date: August 2, 2018 Re: Yuba County 07/31/2018 Redemption

I. Fund/Shareholder Impacted and Period of Time: CalTRUST Liquidity Fund, Yuba County, less than ½ day.

II. What caused the Incident: Yuba County faxed in a redemption request to Gemini at 10:35 AM Pacific time on 07/31/2018. The redemption request was for the Liquidity Fund, but was sent on a Medium-Term form, with no account number. The processor working off of the faxed image found the account, and worked the request. The processor read the redemption request amount as $3,500,000, however the request was actually for $5,500,000. The transaction went through the standard 2 levels of QC on Gemini’s side, with no issue being found for the amount. The faxed request (pictured below) appears to be $3,500,000. Enlarging the image to 150% the amount appears to be $5,500,000.

III. Kyle Tanaka reached out to Chris Baird at 4:41 PM Pacific time on 07/31/2018, bringing the issue to Chris’s attention.

Chris Baird worked with Kara Baird and Scott Lemmon to ensure the additional $2,000,000 was sent first thing on 08/01/2018. That wire was sent to Yuba County’s bank account at 6:00 AM Pacific time on 08/01/2018.

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IV. Impact on Shareholder’s Activity Yuba County was short $2,000,000 of their requested redemption proceeds between 1:30 PM Pacific on 07/31/2018 to 6:00 AM Pacific on 08/01/2018. The additional $2,000,000 was processed as a second redemption, which allowed Yuba County to earn income on that $2,000,000 for an additional day.

V. Course of Action to be taken to Avoid Recurrence Processors will enlarge all documents to at least 150% magnification when working out of the imaging system in workflow. That change will prevent issues like this for the future, particularly on faxed documents. Distribution: Kristin McCann CalTRUST Board Materials Kara Baird Katie Yockey

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Agenda Item: 14. Investment, Market & Portfolio Strategy Update & Review

Action Item Presented By: Ron Hill, Tom Musmanno, & Charlie Praska BACKGROUND: The BlackRock team will provide a market and portfolio positioning update. Information is attached. Specific items on which the Board should discuss and/or take action include:

a. Consider approval of BlackRock side letter permitting 144A investments into the CalTRUST funds. This item had previously been reviewed with the Product Review Committee and deemed acceptable.

b. Consider usage of the US Bank Cash Deposit Facility: US Bank has a deposit facility that would earn a rate of interest, and provide daily liquidity. The deposit facility may provide a yield that is more than a government money market fund, but they require some commitment of capital. This facility could make sense for the CalTRUST Liquidity Fund. BlackRock would like the Board to discuss if the facility would be a “deposit” or cash. If a deposit, then it may not be an attractive option as it reduces the exposure to the existing certificate of deposit exposure held in the fund. If cash, then it would not impact the current positioning of the fund.

c. Consider approval of $3,600 Gemini data file feed expenditure: In order for BlackRock to run the daily stress tests on the Liquidity Fund, Gemini has to build a custom file to feed the data into Aladdin. Gemini will charge a fee of $3,600 in order to supply this data file feed.

RECOMMENDATION: It is recommended that the Board approve the BlackRock side letter permitting 144A investments, provide direction on the US Bank Cash Deposit Facility, and consider the Gemini expense to provide BlackRock the appropriate data file feed.

75

DATE Laura Labanieh CalTRUST 1100 K Street, Suite 101 Sacramento, CA 95814 Dear Ms. Labanieh: We refer to the Investment Management Agreement dated as of June 19, 2017 (the “Agreement”) between Investment Trust of California, doing business as CalTrust (the “Client”) and BlackRock Financial Management, Inc., (the “Manager”). The Manager currently manages one or more separate accounts for the Client in accordance with the terms of the Agreement and each account’s applicable investment guidelines. In consideration of our recent discussions regarding certain changes to the investment guidelines for each of the separately managed accounts, we enclose for your review and approval revised investment guidelines for the two short duration portfolios along with the liquidity portfolio. Please acknowledge your agreement with the foregoing by signing in the space provided below and returning the fully-executed letter to us. Sincerely, BlackRock Financial Management, Inc. By: _______________________________ Name: Title: Managing Director Investment Trust of California d/b/a CalTRUST By: _______________________________ Name: Title:

76

CalTRUST

August 2018

The opinions expressed are as of August 2018 and are subject to change at any time due to changes in market or economic conditions.

This presentation is for use with Institutional investors. It is strictly confidential and may not be reproduced for, disclosed to or otherwise provided in any format to any other person or entity without the prior written consent of BlackRock. This presentation does not constitute an offer to sell, or a solicitation of any offer to buy, securities in any jurisdiction to any person. The material is not intended to provide, and should not be relied on for accounting, legal or tax advice. You should contact your tax or legal adviser about the issues discussed herein.77

Market Review

78

Overview• August Non-Farm Payroll: US non-farm payrolls data for the month of August came in at 201k (above the 190k estimate). The report was robust

across the board, with the unemployment rate edging a tad lower to 3.85% from 3.87% in July, while the U6 underemployment rate skipped lower another 0.1% to 7.4%. The big surprise was wage growth, which jumped 0.4%, the biggest monthly gain since December of last year, bringing the annualized rate to 2.9%, the highest since June 2009. Overall a strong report that should heighten market expectations for a December rate hike.

• Federal Reserve: The Federal Open Market Committee (FOMC) released its August meeting minutes which showed an upbeat Committee over the domestic economy. However, there is heightened concerns over the risks from trade tensions and a slowing in the US housing market. While the balance sheet discussion was limited in content, the minutes noted specifically that Chairman Powell suggested that a discussion on the operating framework would likely take place this fall. The market prices a rate hike in September at above 90%.

• Emerging Market Woes: What started as a concentrated issue with Turkey and its burgeoning account deficit, began to spread wider across other beleaguered emerging market countries, including Argentina. While Argentina is dealing with similar fiscal issues, the severity of how much spreads have widened and local currencies declined reminded investors of potential contagion into other emerging markets and asset classes.

• US Rates Market: The US Treasury curve rallied the most since March. Particularly the belly of the curve saw a rally of as much as 11 bps with the 10-year yield touching 2.81% as investors sought less volatile asset classes to navigate the spike in volatility amid emerging market debt, foreign exchange and other risk sectors.

FRB of Dallas President Kaplan said he hopes to raise interest rates as much as four times without inverting the US yield curve

August 2018

Source: Barclays Research using Bloomberg data. Data as of 23 August, 2018.

Contagion hasn’t spread yet while spreads mostly widened

among local EMD, as external debt remained stable

3

See appendix for information on economic data sources. past performance is not a reliable indicator of future results.

For use with US Institutional and Qualified Investors only – Proprietary and Confidential

Source: JPMorgan. Graph by BlackRock. Data as of 31 August, 2018. *Largest 10 countries in the JP Morgan EMBI Global index of external debt; listed in order of their weighting in the index. Data as of August 31, 2018. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

FI0818U-567545-1784604

Market expects the front end to invert by 2020 0.6%

-2.4%

-9.5%

0.4%

-4.2%

0.8%

-10.5%

0.5% 0.7% 0.2%

-3.0% -3.4%

-18.4%

-2.3%

-6.6%

-0.6%

-13.0%

-2.1%-1.2% -1.4%

-20%-18%-16%-14%-12%-10%-8%-6%-4%-2%0%2%

Aug-18 YTD

79

US Labor MarketAnother very robust jobs report as headline beats estimates and salaries rise

The 0.4% wage rise, the highest monthly gain since December, led the annualized growth rate to the highest since June 2009

The August non-farm payroll report showed another solid gain of 201k, beating the 190k estimate and bringing the YTD average to 212k. Also surprising was wage growth, which jumped 0.4% in August bringing annualized growth to 2.9%, the highest since June 2009. Wage Growth: Wages jumped 0.4%, which was unusual for the month

of August which over the past 10 years only witnessed such a monthly growth rate twice. It was the highest monthly gain since December 2017 and could strengthen the Fed’s resolve to raise rates in December.

Unemployment Rate: While the unemployment rate stayed at 3.9%, still near the lowest since the 1960s, the rate edged lower still from July 3.87% to 3.85%.

Participation Rate: The participation rate fell by 0.2% to 62.7% mainly driven by a drop in teenage participation which was seasonal in nature.Against of the challenging demographic backdrop, the Participation Rate has remained remarkably stable moving within a range of 62.3 and 63.1 over the past five years.

August 2018

The participation rate remained surprisingly stable over the past three years despite demographic headwinds

With the additional upward revision of 59k for the prior two months, the three-month average rose to 224k

Source: BLS, JPMorgan. Report as of 7 September, 2018.

4For use with US Institutional and Qualified Investors only – Proprietary and Confidential

See appendix for information on economic data sources.Source: BLS, JPMorgan. Report as of 3 August, 2018.

Source: BLS, Bloomberg. Data as of 7 September, 2018.

Monthly NFP Payrolls

Year

YearYear

FI0818U-567545-1784604

00.5

11.5

22.5

33.5

4

Annualized Wage GrowthYoY %Civilian Participation Rate

80

Federal Open Market Committee (FOMC)Supported by strong economic data, August minutes suggest further tightening

One of the FOMC’s concern is the slowing housing markets,

whose rising prices starting to crimping affordability

The Minutes for the FOMC’s August meeting showed that there

remains broad consensus not only around the September rate hike, but further gradual rate increases thereafter as the Committee remains upbeat about the US economy. Still Data Dependent: The minutes noted that the Committee’s

members “suggested that if incoming data continued to support their

current economic outlook, it would likely soon be appropriate to take another step in removing policy accommodation.”

Economic Strength Underpins Approach: The Fed’s desire to step

up the pace of the hiking cycle relative to last year seems to mainly reflect the stronger economic outlook rather than a shift in the Committee’s monetary policy approach.

Though Deviation Possible: The FOMC also signaled a willingness to deviate from the current policy path if needed, as the Committee expressed the view that growth may slow in H2 citing risks to the economic outlook, including trade tensions and a slowdown in the housing market. Source: US Bureau of Economic Analysis. As of 29 August 2018.

August 2018

Source: BlackRock with data from Bloomberg. Data as of 29 August, 2018

In its 2nd revision to 2Q GDP, the US economy recorded its best performance since 3Q’14, driven by business spending

Future GDP growth implied by BlackRock GSP vs. consensus estimates shows a flattening of growth momentum so far in 2H

Source: Sources: BlackRock Investment Institute and Consensus Economics, August 2018. The GPS shows where the GDP weighted G7 12-month consensus GDP forecast may stand in three months' time.


See appendix for information on economic data sources

Index Pts

FI0818U-567545-1784604

-1.5

-1

-0.5

0

0.5

1

1.5

2

Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18

Bloomberg ECO US Housing & Real Estate Market Surprise Index

Rea

l GD

P –

annu

al g

row

th ra

te

81

Source: Bloomberg. Data as of 31 August, 2018.

US interest rates across the curve rallied on softer US data, political uncertainty in the US and volatility in emerging markets

US Rates / Agencies / SSAAs emerging market angst spills over, risk-off market tone led to US rates rally

Source: Barclays Research using Bloomberg Data. Data as of 23 August, 2018.

While the market all but priced in a rate hike in September, December and March rate hikes appear far from certain

August 2018

The US rates markets rallied across the curve in August amid softer US economic data, a spike in emerging market volatility and continued political uncertainty in the US. US Interest Rates: Given the turmoil around emerging markets, the

belly of the curve posted the biggest rally with the 10-year rallying by 11 bps, which is the most since March. The front end curve also participated in the rally, but to a lesser extent, falling by 5 bps.

Global Rates Rallied Along with the US: The angst surrounding emerging markets has also impacted other rates with safe haven appeal, including Germany Bunds and Japanese rates. However, the US rates market outpace both markets in August.

Rate Hikes Priced In: While the September rate hike by the FOMC is all but priced in, the most recent rally pulled market expectations lower for a December rate hike. Additionally, another rate hike in September would move the effective federal funds rate up to roughly 2.20%, which to some FOMC participants’ assessment would be the neutral rate.

6

Over the past two weeks US rates rallied amid rising political uncertainty in the US and elevated stress in emerging markets

For use with US Institutional and Qualified Investors only – Proprietary and Confidential

Source: Barclays Research. Data as of August 23, 2018

Yield in %

FI0818U-567545-1784604

-0.2-0.1

00.10.20.30.40.50.60.70.8

2-Year 5-Year 10-Year 30-Year

Aug 3-Month YTD

82

After credit spreads widen during 1H on corporate and foreign outflows, limited supply so far in 2H tightened spreads

August 2018

Source: Barclays Research. Data as of 31 August 2018. **Past performance is not a guarantee of future results. Index performance is for illustrative purposes only. It is not possible to invest directly in an index. *Duration adjusted excess returns provided by Barclays.See appendix for additional disclosures. Issuance data is calculated internally from the

BlackRock capital markets group.

Compared to previous years, issuance has slowed in Q3 and is now trailing YTD issuance level in 2017

BBG Barclays US Corporate Indices – Excess Return by Sector

Source: JPMorgan. Report as of 15 August, 2018.


Excess Returns (bps)*

US Corp 1-3 YR

US Corp 3-5 YR

US Corp 10+ Yr

US Corp IG Agg

Aug 2018 MTD YTD MTD YTD MTD YTD MTD YTD

Corporate 9 27 7 3 -124 -254 -43 -89

Financial 12 24 11 -7 -103 -365 -16 -82

Industrial 6 29 4 11 -141 -228 -59 -86

Utility 6 20 3 -4 -49 -246 -27 -146

Corporate CreditHeavy August supply and risk-off market sentiment curtailed returns

• Return Summary:– The Bloomberg Barclays US 1-3 year Corporate Index had an

excess return of 9 bps in August versus duration adjusted Treasuries, bringing YTD returns to 27 bps.**

• Issuance: New issuance totaled $87bn in August, well ahead of the $65bn

estimate. M&A related supply continues to slow with $11 bn of issuance from United Technologies to fund the purchase of Rockwell Collins being the only notable issue over the month.

Issuance YTD rose to $802bn, which compares to $869bn of last year.

• Market Color: The geopolitical risks surrounding trade wars and the developments

in emerging markets led US rates to rally. The best-performing sectors were REITs, construction machinery,

packaging, and brokerage & asset management, and airlines. The worst performing were railroads, tobacco, wirelines, metals & mining, and cable/satellite. Source: BlackRock. Report as of 31 August 2018.

OAS

in b

ps

FI0818U-567545-1784604

Issu

ance

in $

bn

83

• Return summary:– The Bloomberg Barclays ABS Floating Rate 1-3 Year Index posted an

excess return of 8 bps vs. duration adjusted Treasuries in August, bringing the YTD return to 36 bps.

• Issuance: – In the month, we saw $16.2bn of ABS issuance across 28 transactions,

which was down 28% MoM and down 15% YoY. Auto related ABS issuance represented 51% of total supply in August, while esotericsrepresented 14%.

– YTD issuance now stands at $165.0bn, which is still 10% ahead of last year’s pace.

• Market color: Secondary market activity declined along with the decrease in new

issue volumes, enabling dealers to net sell $1.4bn on the month. High quality paper retraced some of its widening from the first half of

the year, as the positive technical helped push spreads 2-3 bps tighter on the month.

Spreads in higher yielding paper were broadly unchanged on the month, with relatively light trading activity and price volatility.

Collateral performance in private student loans remains strong, and the deterioration previously seen in auto loan and unsecured consumer loan performance appears to have stabilized.

Charge-offs in credit card ABS trusts decreased in August to 2.35% from 2.39% in July.

With supply ahead by 10% from LYTD, the street expects supply to beat last year’s issuance level of $222bn

Spreads for high quality AAA-rated 3-year paper tightened on positive technicals and strong fundamentals

Asset-Backed Securities (ABS)Scarcity of paper along with strong fundamentals supported tighter spreads

August 2018

Source: JPMorgan. Data as of 31 August, 2018.

Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index. Past performance is not indicative of future returns. Duration adjusted excess returns provided by Barclays. See appendix for on economic data sources. Issuance data is calculated internally from the BlackRock trading desk. See appendix for information on economic data sources.


Source: Barclays Research. Data as of 31August, 2018.

FI0818U-567545-1784604

0

10

20

30

40

50

60

Spre

ad v

s. S

wap

s (b

ps)

Credit Card AAA Fixed Prime Auto AAA Fixed

84

Short Duration Positioning – Relative Value Map*August 2018

Corporate Credit We reduced our exposure to Corporates given the strong performance in July and August. Issuance is

expected to pick up in September which may pressure spreads wider representing a better entry point toincrease exposure. We also reduced our overweight to banking and communications and rotated intotransportation. We remain underweight the consumer oriented sectors.

CMBS We maintain an allocation to higher quality paper on the belief that lack of supply, diminishing macro

volatility, and steady fundamentals should keep spreads anchored in the near term.

ABS We favor high quality bank cards and prime autos which offer front-end exposure to swap spreads and

minimal spread volatility. We also like higher-beta sectors with strong collateral performance, such asprivate student loans and fleet leases. We plan on adding AAA-rated CLOs as new issuance calendarpicks up in September.

Global Rates / Macro We are positioned neutral duration with a bias to be long as we believe the rates will remain range bound

with the Fed approaching neutral rate while the economic conditions outside of the US continue to worsen.

Agency MBS We remain neutral on the sector amid concerns that higher volatility and lack of demand will weigh on

mortgages. We like CMOs and 15-year pass throughs for carry.

Agency / Gov’t Guaranteed / Supranationals We remain cautious on Canadian provincials due to deteriorating fundamentals. We prefer covered bonds

to US agency debentures for risk-adjusted carry.

Relative Value Score

*The opinions expressed are as of 31 August 2018 and are subject to change at any time due to changes in market or economic conditions. Note that strategies employed may vary depending on individual client guidelines. Relative value score is assigned by the Short Duration Portfolio Team based on their opinion of relative value in each sector and is not derived from a mathematical model.

= Current Month=Prior Month

Short LongNeutral-4 -3 -2 -1 0 +1 +2 +3 +4 +5-5

Reduce AddNeutral-4 -3 -2 -1 0 +1 +2 +3 +4 +5-5




=2Q 2018

9


FX Macro – USD View Despite the rise in volatility in EM currency, G10 currency has remained relatively insulated. We believe

most of the G10 economies will continue to slowly move away from easing monetary policy and remainslightly short USD. Reduce AddNeutral

-4 -3 -2 -1 0 +1 +2 +3 +4 +5-5

85

Excess returns versus TreasuriesShort Duration Sectors

* Unannualized** Represented by US Floating Rate Corporates Index *** Barclays US High Yield 1-5 Yr Cash Pay 2% Index

Source: Barclays Capital. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index. Past performance is not indicative of future returns. Boxes highlighted in yellow represent the current period.

August 2018

Duration-adjusted excess returns by sector (in basis points)*

BBG Barclays Index 2014 2015 2016 Q32017

Q42017 2017 Jan

2018Feb 2018

Mar2018

Q12018

Apr2018

May 2018

Jun2018

Q22018

Jul2018

Aug2018 YTD

Barclays Agg 12 -53 138 41 36 121 18 -20 -29 -31 6 -15 -14 -23 42 -15 -27

Agency 1-3 Yrs 8 -6 12 5 0 31 1 -3 3 1 -2 2 0 -1 4 4 8

MBS 15 Yrs 85 16 10 26 7 37 -14 -20 12 -22 8 -8 1 2 -1 1 -21

ABS Float. Rate 1-3 Yrs 62 21 118 21 12 96 6 0 0 6 7 11 0 18 4 8 36

CMBS 1-3.5 Yrs 93 -4 115 2 29 81 7 -8 -1 -2 13 3 1 18 23 8 47

Credit 1-3 Yrs 43 24 112 27 13 113 4 -15 -9 -21 17 2 -2 17 19 7 23

Credit 1-5 Yrs 56 13 148 40 23 162 9 -22 -21 -34 20 -3 -5 12 30 6 14

US Float. Rate Credit** 66 41 172 34 32 164 22 -1 -12 9 28 -3 8 33 25 8 76

US High Yield 1-5 Yrs*** -45 -598 1498 126 64 557 126 -20 -45 60 95 -7 44 133 105 20 323

10

86

Portfolio Review

87

Credit Quality (% NAV) Sector Allocation Changes (%NAV)

Portfolio characteristics

CalTRUST Short Term Bond Fund

Portfolio Composition

Portfolio Benchmark Difference

Effective Duration (yrs.) 0.49 0.56 -0.07

Spread Duration 0.65 0.16 0.49

Convexity 0.01 0.01 0.00

Yield (%) 2.45 2.37 0.08

Avg Credit Qual (Mdy/S&P) Aa2/AA- Aa1/AA -

Floating Rate Bonds (%) 35% - -

Source: BlackRock

19%

5%

15%

23%

7%

0%

5%

24%

2%

26%

5%

15%

22%

7%

0%

5%

17%

3%

0%

5%

10%

15%

20%

25%

30%

7/31/2018 8/31/2018

Govt15%

AAA34%

AA19%

A30%

BBB2%

Govt

AAA

AA

A

BBB

August 2018

12For use with CalTRUST only- not for further distribution

88

13

Portfolio duration vs. benchmark (Years)

CalTRUST Short Term Bond Fund


Portfolio Spread Duration (Years)

For use with CalTRUST only- not for further distribution

0.20

0.30

0.400.50

0.60

08/3

1/20

17

09/3

0/20

17

10/3

1/20

17

11/3

0/20

17

12/3

1/20

17

01/3

1/20

18

02/2

8/20

18

03/3

1/20

18

04/3

0/20

18

05/3

1/20

18

06/3

0/20

18

07/3

1/20

18

08/3

1/20

18

Short Term Bond Fund BBG Barc Short-term Gov/Corp Index

0.500.550.600.650.700.750.800.850.90

07/3

1/20

17

08/3

1/20

17

09/3

0/20

17

10/3

1/20

17

11/3

0/20

17

12/3

1/20

17

01/3

1/20

18

02/2

8/20

18

03/3

1/20

18

04/3

0/20

18

05/3

1/20

18

06/3

0/20

18

07/3

1/20

18

08/3

1/20

18

89

CalTrust Short Term Bond FundPositioning

Effective Duration and WAL Breakdown (% NAV)

Active Portfolio Yield Curve Positioning (years)

76%

12% 11%

1%

93%

6%1% 0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

<1 1-2 2-3 3-5WAL %NAV Duration %NAV

Spread Duration Change (% NAV)

2%

22%

46%

16%

0%

4%

10%

3%

21%

43%

20%

0%

4%

9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

SSA ABS Financials Industrials Utilities TaxableMuni

CD/CP7/31/2018 8/31/2018

5

Source: BlackRock

-0.09 -0.08

0.090.01

-0.35

-0.25

-0.15

-0.05

0.05

0.15

0.25

3M 1Yr 2Yr 3Yr

August 2018


90

Net total return in USD (annualized %)

As of August 31, 2018

0.28

0.62

1.07

0.20

0.55

1.04

0.0

0.5

1.0

1.5

2.0

2.5

1-month* 3-month* 6-month*

CalTrust Short Term Bond Fund BBG Barc Short-term Gov/Corp Index

CalTrust Short Term Bond FundPerformance Summary

-0.07 1-Month* 3-Month* 6-Month*Active Return 0.08 0.07 0.03

*unannualized

Total Return data provided by Gemini


91

CalTRUST Short Term Bond FundPortfolio Attribution

*Miscellaneous – Includes Trade PnL and un-allocated attribution. Trade PnL reflects the natural bid/offer spreads that exist in the secondary market and doesn't reflect active trading returns.

August 2018

Source: BlackRock Attribution calculated on gross returns and may not match the returns provided by Gemini due to methodology differences


YTD 2018 Gross Performance Attribution (bps)

Duration/Curve 0Miscellaneous * -1

Sector Allocation Security Selection Total Treasury -4 -1 -5SSA 0 0 0

Corporates 20 -14 6

Municipal -1 2 1

ABS 3 0 3

CMBS 0 0 0

Cash (CD/CP) 12 0 12

Subtotal 30 -13 17

Total Active Gross Return 16

92

CalTRUST Short Term Bond FundStress Test Simulations

BlackRock has a suite of pre-defined stress tests that reflect historical market crises and ad-hoc market scenarios. Historicalstress test examines how the fixed income markets reacted during a previous market event and then applies a one time shock to the portfolio today replicating that market event in order to provide the portfolio manager with a idea of how the portfolio would react should a similar situation were to arise. It is important to remember that in reality it is unlikely that the market would adjust in one day so the performance displayed below may not represent a realistic depiction of actual performance but can beused as a tool for examining risk.

In the summer 2013 Ben Bernanke suggested that the Fed could begin to taper its monthly purchases of bonds. The news took the markets by surprise causing a dramatic reaction. The 2013 taper tantrum analysis shocks 33 different market factorsincluding rates which rallied across the curve and credit spreads which widened during the event.

In August of 2011 S&P downgraded US debt for the first time in history. The 2011 downgrade analysis shocks 33 different factors including rates which sold off across the curve and credit spreads which widened during the event.

Please refer to Appendix for discussion of methodology, assumptions and limitations. Results shown are purely hypothetical and do not represent actual performance results. PAST PERFORAMNCE IS NO GUARANTEE OF FUTURE RESULTS. Data as of 31 August 2018

Performance in Bps Shock Scenario Short Term Portfolio Benchmark 2013 "Taper Tantrum" -9 -22011 US Government Debt Downgrade -8 2Interest Rates Rise 25 bps (parallel shift ) -10 -14Interest Rates Rise 50 bps (parallel shift ) -21 -28


93

From BlackRock’s perspective, business-relevant ESG factors can contribute to a company’s long-term financial performance, and thus can provide useful insights to investors as signals of management effectiveness, operational excellence and business model tail risks. As a fiduciary, our purpose is to protect and enhance the economic interests of our clients. It is through this long-term performance lens that BlackRock considers ESG factors.

BlackRock uses MSCI ESG Research together with internal research for ongoing efforts to integrate ESG information into BlackRock’s investment process and

engagements. Our internal risk system, Aladdin, utilizes MSCI ESG ratings to provide aggregate portfolio ESG scores weighted by covered NAV. Additional information sources to enhance its in-house research include company reports, ESG-related specialist media and databases (e.g. CDP), proxy research, and analysis published by investment banks, specialist consultancies and NGOs.

18

Source: MSCI

Portfolio ESG Rating Distribution

2%10%

40%

12%

9%

0%3%

24%

ESG AAA

ESG AA

ESG A

ESG BBB

ESG BB

ESG B

ESG CCC

Not Rated/(securitized, municipal)

CalTRUST Short Term Bond FundEnvironmental, Social and Governance Overview


94

Credit Quality (% NAV) Sector Allocation Changes (%NAV)


CalTRUST Medium Term Bond Fund


Portfolio Benchmark Difference


Spread Duration 1.31 0.59 0.72

Convexity 0.04 0.05 -0.01

Yield (%) 2.87 2.72 0.15

Avg Credit Qual (Mdy/S&P) Aa2/AA Aa1/AA -


Source: BlackRock

20%

12%

20% 19%

23%

6%

23%

11%

19% 18%21%

8%

0%

5%

10%

15%

20%

25%

TSY SSA ABS TaxableMunis

Financials Industrials

7/31/2018 8/31/2018

Govt25%

AAA29%

AA22%

A21%

BBB3%

Govt

AAA

AA

A

BBB

August 2018


95

20

Portfolio duration vs. benchmark (Years)

1.51.61.71.81.92.0

08/3

1/20

17

09/3

0/20

17

10/3

1/20

17

11/3

0/20

17

12/3

1/20

17

01/3

1/20

18

02/2

8/20

18

03/3

1/20

18

04/3

0/20

18

05/3

1/20

18

06/3

0/20

18

07/3

1/20

18

08/3

1/20

18

CALMT-SD Merrill Lynch Gov/Corp 1-3 Yr Ex. BBB

CalTRUST Medium Term Bond Fund


Portfolio Spread Duration (Years)

1.01.11.21.31.41.51.61.7

07/3

1/20

17

08/3

1/20

17

09/3

0/20

17

10/3

1/20

17

11/3

0/20

17

12/3

1/20

17

01/3

1/20

18

02/2

8/20

18

03/3

1/20

18

04/3

0/20

18

05/3

1/20

18

06/3

0/20

18

07/3

1/20

18

08/3

1/20

18


96

CalTrust Medium Term Bond FundPositioning

Effective Duration and WAL Breakdown (% NAV)

Active Portfolio Yield Curve Positioning (years)

8%

48%

40%

4%8%

54%

36%

2%

0%

10%

20%

30%

40%

50%

60%

<1 1-2 2-3 3-5WAL %NAV Duration %NAV

Spread Duration Change (% NAV)

14%

22%24%

30%

9%

1%

15%

21%24%

29%

11%

0%0%

5%

10%

15%

20%

25%

30%

35%

SSA ABS TaxableMunis

Financials Industrials Utilities

7/31/2018 8/31/2018

11

Source: BlackRock

0.02

-0.02 -0.04

-0.09

0.09

-0.15

-0.10

-0.05

0.00

0.05

0.10

0.15

3M 1Yr 2Yr 3Yr 5Yr

August 2018


97

Net total return in USD (annualized %)

As of August 31, 2018

0.380.51

0.89

0.34 0.40

0.82

-0.8

-0.3

0.3

0.8

1.3

1.8

2.3

1-month* 3-month* 6-month*

CalTrust Medium Term Bond Fund Merrill Lynch Gov/Corp 1-3 Yr Ex. BBB

CalTrust Medium Term Bond FundPerformance Summary

-0.07 1-Month* 3-Month* 6-Month*

Active Return 0.04 0.09 0.07

*unannualized

Total Return data provided by Gemini Companies

12

Source: BlackRock Attribution calculated on gross returns and may not match the returns provided by Gemini due to methodology differences


98

CalTRUST Medium Term Bond FundPortfolio Attribution

*Miscellaneous – Includes Trade PnL and un-allocated attribution. Trade PnL reflects the natural bid/offer spreads that exist in the secondary market and doesn't reflect active trading returns.

August 2018

Source: BlackRock


YTD 2018 Gross Performance Attribution (bps)

Duration/Curve 4Miscellaneous * 0

Sector Allocation Security Selection Total Treasury 7 0 7SSA 0 -1 -1

Corporates 2 3 5

Municipal 3 0 3

ABS 2 0 2

CMBS 0 0 0

Cash (CD/CP) 0 0 0

Subtotal 14 2 16

Total Active Gross Return 20

99

CalTRUST Medium Term Bond FundStress Test Simulations




Please refer to Appendix for discussion of methodology, assumptions and limitations. Results shown are purely hypothetical and do not represent actual performance results. PAST PERFORAMNCE IS NO GUARANTEE OF FUTURE RESULTS. Data as of 31 August 2018

Performance in Bps Shock Scenario Medium Term Portfolio Benchmark 2013 "Taper Tantrum" -61 -442011 US Government Debt Downgrade 19 42Interest Rates Rise 25 bps (parallel shift ) -43 -46Interest Rates Rise 50 bps (parallel shift ) -86 -93


100




25

Source: MSCI


9%

4%

31%

9%7%

2%1%

37%

ESG AAA

ESG AA

ESG A

ESG BBB

ESG BB

ESG B

ESG CCC


CalTRUST Medium Term Bond FundEnvironmental, Social and Governance Overview


101

Credit Quality (% NAV) Sector Allocation (%NAV)


CalTRUST Liquidity FundPortfolio Composition

Portfolio Benchmark* Difference


Spread Duration (yrs.) 0.16 0.00 0.16

Convexity -0.01 0.00 -0.01

Gross Yield (%) 2.03 2.11 -0.08

Avg Credit Qual (Mdy/S&P) Aa2/A+ Aaa/AA -



Source: BlackRock

A-1+76%

A-1+24%

NR0%

A-1+

A-1+

NR

August 31, 2018

16

7%

0% 0% 0%

19% 18%

56%

0%0%

8%

1% 1%

22%

14%

40%

14%

0%

10%

20%

30%

40%

50%

60%

Agencies T-Bills IG:Financial

IG:Industrial

CDs CP Repo MMF

7/31/2018 8/31/2018

1.21.31.41.51.61.71.81.92.02.12.2

06/2

8/20

1807

/01/

2018

07/0

4/20

1807

/07/

2018

07/1

0/20

1807

/13/

2018

07/1

6/20

1807

/19/

2018

07/2

2/20

1807

/25/

2018

07/2

8/20

1807

/31/

2018

08/0

3/20

1808

/06/

2018

08/0

9/20

1808

/12/

2018

08/1

5/20

1808

/18/

2018

08/2

1/20

18

Ret

urns

(%)

Daily Net Yields (Inception to Date)

*Benchmark: ICE BofA ML 3 Month Treasury Bill Index

102

CalTRUST Liquidity FundStress Test Simulations




Please refer to Appendix for discussion of methodology, assumptions and limitations. Results shown are purely hypothetical and do not represent actual performance results. PAST PERFORAMNCE IS NO GUARANTEE OF FUTURE RESULTS. Data as of 31 July 2018

Performance in Bps Performance in Bps Shock Scenario Liquidity Portfolio Benchmark Portfolio 2013 "Taper Tantrum" 0 12011 US Government Debt Downgrade -2 0Interest Rates Rise 25 bps (parallel shift ) 0 -6Interest Rates Rise 50 bps (parallel shift ) 1 -12


103




28

Source: MSCI


9%

4%

31%

9%

2%

37%

ESG AAA

ESG AA

ESG A

ESG BBB

ESG BB

ESG B

ESG CCC


CalTRUST Liquidity FundEnvironmental, Social and Governance Overview


104

CalTRUST Portfolio Performance | August 31, 2018

Source: Gemini Fund Services, and performance information for the Money Market funds was provided by iMoneyNet, Inc. (formerly IBC Financial Data, Inc.). No representation is made that the information gathered from iMoneyNet, Inc. (formerly IBC Financial Data) is accurate or complete. Performance information is net management fees.


1 Month 6 Month 1 Year 3 Year(Annualized)

5 Year(Annualized)

10 Year(Annualized)

BlackRock Liquidity:FedFund Inst 0.10% 0.52% 0.90% 0.43% 0.26% 0.34%BlackRock Liquidity:TempFund Inst 0.11% 0.34% 1.17% 0.64% 0.41% 0.53%CalTrust Short Term Fund 0.28% 0.62% 1.07% 1.10% 0.83% 0.84%CalTrust Medium Term Fund 0.38% 0.51% 0.89% 0.83% 0.83% 1.27%CalTrust Liquidity Fund 0.16% 0.00% 0.00% 0.00% 0.00% 0.00%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

Net

Ret

urn

105

BlackRock Liquidity Funds

106

Performance (30 Day Yields%)

Fund DetailsSize of Fund* $12,099.1 million

Share Class Inception Date October 10, 1973

Minimum Investment $3 million

Trading Deadline 8:00 AM/ 12:00 PM/ 3:00 PM (ET)

Weighted Average Maturity1 32 Days

Weighted Average Life2 77 Days

7 Day SEC Yield3 2.08%

30 Day Yield4 2.06%

Gross Expense Ratio5 0.22%

Net Expense Ratio5 0.18%

CUSIP 09248U619

Rating6 AAAm; Aaa-mf (S&P; Moody’s)

Information as of July 31, 2018, unless otherwise noted. Performance data represents past performance and does not guarantee future results. Current performance may be lower or higher than theperformance data quoted. Please see Important Notes at the end of this presentation for footnote disclosures. Ratings by S&P and Moody’s apply to the credit quality of a portfolio and are not arecommendation to buy, sell or hold securities of a fund, are subject to change and do not remove market risks associated with investments in the fund. For complete information on the methodologyused by each rating agency, please visit the following websites. S&P: http://www.standardandpoors.com/en_US/web/guest/article/-/view/sourceId/504352;Moody’s :https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004

BlackRock Liquidity Funds TempFund Institutional: TMPXX

The Fund seeks as high a level of current income as is consistent with liquidity and stability of principal. The portfolio primarily invests in first-tier securities, which may include domestic and foreign

corporate obligations, domestic bank obligations, securities issued or guaranteed by the US government or its agencies, and fully collateralized repurchase agreements.

1.20 1.21 1.21 1.211.34

1.46 1.501.64

1.83 1.891.99 2.06

0.000.200.400.600.801.001.201.401.601.802.00

8/17

9/17

10/1

7

11/1

7

12/1

7

1/18

2/18

3/18

4/18

5/18

6/18

7/18

Source: BlackRock, Inc.

Asset Allocation


* Assets under management are reflective of all shares available for investment.

31.5%

29.3%

13.6%

12.5%

10.9%

1.3%

0.6%

0.3%

CD

Financial Co. CP

Asset Backed CP

Other Repo Agreement

Non-Negotiable TimeDeposit

U.S. Gov't Agency RepoAgreement

Supra-National Debt

Non-Financial Co. CP


% Net Total Return7 (Period Ending 6/30/18)

1 Year 3 Year 5 Year 10 Year

1.47 0.84 0.53 0.49

Institutional | Prime | Floating Net Asset Value

31

The investment advisor and/or other service providers for the BlackRock TempFund (Institutional Shares)sometimes waive a portion of their fees or reimburse expenses to the Fund. When they do, operating expensesare reduced and total returns to shareholders in the Fund increase. These waivers and reimbursements can bediscontinued at any time. Without such waivers and reimbursements, which were in effect for all or a portion ofthe period shown, the 7-day SEC yield would be 2.05%.

TLS0818U-575605-1801744For use with CalTRUST only- not for further distribution

107

http://www.standardandpoors.com/en_US/web/guest/article/-/view/sourceId/504352

https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004

Performance (30 Day Yields%)

Fund DetailsSize of Fund* $96,768.2 million

Share Class Inception Date October 1, 1975

Minimum Investment $3 million

Trading Deadline 5:00 PM (ET)

Weighted Average Maturity1 23 Days

Weighted Average Life2 85 Days

7 Day SEC Yield3 1.80%

30 Day Yield4 1.80%

Gross Expense Ratio5 0.19%

Net Expense Ratio5 0.17%

CUSIP 09248U700

Rating6 AAAm; Aaa-mf (S&P; Moody’s)

Information as of July 31, 2018, unless otherwise noted. Performance data represents past performance and does not guarantee future results. Current performance may be lower or higher than the

performance data quoted. Please see Important Notes at the end of this presentation for footnote disclosures. Ratings by S&P and Moody’s apply to the credit quality of a portfolio and are not a

recommendation to buy, sell or hold securities of a fund, are subject to change and do not remove market risks associated with investments in the fund. For complete information on the methodology used by

each rating agency, please visit the following websites. S&P: http://www.standardandpoors.com/en_US/web/guest/article/-/view/sourceId/504352;

Moody’s: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004

BlackRock Liquidity Funds FedFund Institutional: TFDXX

The Fund seeks current income as is consistent with liquidity and stability of principal. FedFund invests at least 99.5% of its total assets in cash, U.S. Treasury bills, notes and other obligations issued or

guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, and repurchase agreements secured by such obligations or cash.

* Assets under management are reflective of all shares available for investment.



Asset Allocation


36.2%

25.6%

23.2%

15.0%

U.S. Gov't Agency Debt

U.S. Gov't Agency RepoAgreement

U.S. Treasury RepoAgreement

U.S. Treasury Debt

% Net Total Return7 (Period Ending 6/30/18)

1 Year 3 Year 5 Year 10 Year

1.21 0.60 0.36 0.30

Effective July 1, 2018, Money Market Funds investing in Government Sponsored entities (GSE’s) not backed bythe full faith and credit of the U.S. Government will no longer be eligible for the U.S. Direct Obligations/FullFaith and Credit Exempt List.

0.90 0.92 0.94 0.961.08

1.21 1.261.43

1.57 1.621.73 1.80

0.000.200.400.600.801.001.201.401.601.80

8/17

9/17

10/1

7

11/1

7

12/1

7

1/18

2/18

3/18

4/18

5/18

6/18

7/18

Institutional | Government | Constant Net Asset Value

32

The investment advisor and/or other service providers for the BlackRock FedFund (Institutional Shares)sometimes waive a portion of their fees or reimburse expenses to the Fund. When they do, operating expensesare reduced and total returns to shareholders in the Fund increase. These waivers and reimbursements can bediscontinued at any time. Without such waivers and reimbursements, which were in effect for all or a portion ofthe period shown, the 7-day SEC yield would be 1.78%.

TLS0818U-575605-1801744For use with CalTRUST only- not for further distribution

108

http://www.standardandpoors.com/en_US/web/guest/article/-/view/sourceId/504352

https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004

Appendix


109

Important NotesData Sources:Unless otherwise noted, all information pertaining to Treasury yields, inflation, breakeven levels and economic data releases are sourced from Bloombergas of the date/ month referenced on each respective slide. Unless otherwise noted, option adjusted spreads and excess returns are sourced fromBarclays. Information provided in the “Market color” and “Issuance” sections of the corporate, ABS and CMBS slides is calculated internally from theBlackRock trading desk. Information pertaining to the FOMC can be found on the Federal Market Committee website.

FI0817U-239305-71840634For use with CalTRUST only- not for further distribution

110

THE INFORMATION CONTAINED HEREIN MAY BE PROPRIETARY IN NATURE AND HAS BEEN PROVIDED TO YOU ON A CONFIDENTIAL BASIS, ANDMAY NOT BE REPRODUCED, COPIED OR DISTRIBUTED WITHOUT THE PRIOR CONSENT OF BLACKROCK, INC. (“BLACKROCK”). These materials arenot an advertisement and are not intended for public use or dissemination.

This communication is not an offer and should not be deemed to be a contractual commitment or undertaking between the intended recipient of this communicationand BlackRock but an indication of what services may be offered subject to a legally binding contract between the parties and therefore no reliance should beplaced on this document or its content. Opinions, estimates and recommendations offered constitute our judgment and are subject to change without notice, as arestatements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant itsaccuracy or completeness. This communication and its content represent confidential information. This material has been prepared for informational purposes only,and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. You should consult your tax or legal adviser regarding such matters.

Credit Quality

The credit quality of a particular security or group of securities may be determined either by BlackRock or a nationally recognized statistical rating organization and does not ensure the stability or safety of an overall portfolio. In the event a security is unrated by a ratings organization, BlackRock may assign an internal rating for purposes of determining credit quality.

Forward Looking InformationThis material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections,forecasts, estimates of yields or returns, and proposed or expected portfolio composition. Moreover, where certain historical performance information of otherinvestment vehicles or composite accounts managed by BlackRock, Inc. and/or its subsidiaries (together, “BlackRock”) has been included in this material and suchperformance information is presented by way of example only. No representation is made that the performance presented will be achieved, or that everyassumption made in achieving, calculating or presenting either the forward-looking information or the historical performance information herein has been consideredor stated in preparing this material. Any changes to assumptions that may have been made in preparing this material could have a material impact on theinvestment returns that are presented herein by way of example.

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell anysecurities or to adopt any investment strategy. The opinions expressed may change as subsequent conditions vary. The information and opinions contained in thismaterial are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all inclusive and are not guaranteed as toaccuracy. There is no guarantee that any of these views will come to pass.

Important Notes


111

Important NotesIndexIt is not possible to directly invest in an unmanaged index.

RiskInvesting in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk. Equities may decline in value due to both real andperceived general market, economic, and industry conditions. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to earlyrepayment risk, and while generally backed by a government, government-agency or private guarantor there is no assurance that the guarantor will meet its obligations.High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity riskthan portfolios that do not. Investors will, at times, incur a tax liability. Income from municipal bonds may be subject to state and local taxes and at times the alternativeminimum tax. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closedwhen most advantageous. Investing in derivatives could lose more than the amount invested.

BlackRock makes no representations or warranties as to the accuracy or completeness of the information contained herein, and further nothing contained herein shall berelied upon as a promise by, or representation by, BlackRock whether as to past or future performance results. Past performance is not indicative or predictive of futureperformance.

These materials are being provided for informational purposes only and are not intended to constitute tax, legal or accounting advice. You should consult your ownadvisers on such matters. Additional information is available on request. Information contained herein is believed to be reliable but BlackRock does not warrant itsaccuracy or completeness. Information contained herein represents BlackRock’s own opinions. There can be no assurance that the investment objectives of any strategyreferred to herein will be achieved. An investment in any strategy referred to herein involves a high degree of risk, including the risk that the entire amount invested may belost.

This material is not intended to be a recommendation or advice by BlackRock. If this material were construed to be a recommendation by BlackRock, BlackRock wouldseek to rely on Department of Labor Regulation Section 2510.3-21(c)(1). As such, by providing this material to you, a plan fiduciary that is independent of BlackRock,BlackRock does not undertake to provide impartial investment advice or give advice in a fiduciary capacity. Further, BlackRock receives revenue in the form of advisoryfees for our mutual funds and exchange traded funds and management fees for our collective investment trusts.

THIS MATERIAL IS HIGHLY CONFIDENTIAL AND IS NOT TO BE REPRODUCED OR DISTRIBUTED TO PERSONS OTHER THAN THE RECIPIENT.

© 2017 BlackRock, Inc. All rights reserved. ALADDIN, BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES are registered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are the property of their respective owners.


112

THE INFORMATION CONTAINED HEREIN MAY BE PROPRIETARY IN NATURE AND HAS BEEN PROVIDED TO YOU ON A CONFIDENTIAL BASIS, ANDMAY NOT BE REPRODUCED, COPIED OR DISTRIBUTED WITHOUT THE PRIOR CONSENT OF BLACKROCK, INC. (“BLACKROCK”). These materials arenot an advertisement and are not intended for public use or dissemination.

This communication is not an offer and should not be deemed to be a contractual commitment or undertaking between the intended recipient of this communicationand BlackRock but an indication of what services may be offered subject to a legally binding contract between the parties and therefore no reliance should beplaced on this document or its content. Opinions, estimates and recommendations offered constitute our judgment and are subject to change without notice, as arestatements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant itsaccuracy or completeness. This communication and its content represent confidential information. This material has been prepared for informational purposes only,and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. You should consult your tax or legal adviser regarding such matters.

Any reference herein to any security and/or a particular issuer shall not constitute a recommendation to buy or sell, offer to buy, offer to sell, or a solicitation of anoffer to buy or sell any such securities issued by such issuer.

The information presented is supplemental to a GIPS-compliant presentation; however, because BlackRock does not currently manage accounts in the strategypresented, a GIPS-compliant presentation is not available. A complete list and description of all firm composites is available upon request.

Performance and FeesPast performance is not a guarantee or a reliable indicator of future results. Certain performance figures do not reflect the deduction of investment advisoryfees (described in Part II of BlackRock's Form ADV) but they do reflect commissions, other expenses (except custody), and reinvestment of earnings. Such feesthat a client may incur in the management of their investment advisory account may reduce the client's return. For example, assuming an annual gross return of 8%and an annual management/advisory fee of .40%, the net annualized total return of the portfolio would be 7.58% over a 5-year period. The “net of fees’ performancefigures reflect the deduction of actual investment advisory fees but do not reflect the deduction of custodial fees. All periods longer than one year are annualized.(Separate account clients may elect to include BlackRock funds in their portfolio; sector funds may be subject to additional terms and fees.)

Credit QualityThe credit quality of a particular security or group of securities does not ensure the stability or safety of an overall portfolio. The Quality ratings of individualissues/issuers are provided to indicate the credit worthiness of such issues/issuer and generally range from AAA, Aaa, or AAA (highest) to D, C, or D (lowest) forS&P, Moody’s, and Fitch respectively.

Model LimitationsThe model is subject to significant limitations. It cannot account for the impact that economic, market, and other factors may have on the implementation of anactual investment. In addition to the variables identified above, the return of any such portfolio will vary materially from the return shown based on numerous factors,including, but not limited to current market conditions and the specific securities in the portfolio. This model is not intended to provide, and should not be relied uponfor investment, accounting, legal or tax advice, nor used with any third-parties.

Securities ReferencedAny reference herein to any security and/or a particular issuer shall not constitute a recommendation to buy or sell, offer to buy, offer to sell, or a solicitation of anoffer to buy or sell any such securities issued by such issuer. BlackRock may or may not own securities referenced and, if such securities are owned, no representation is being made that such securities will continue to be held.

Important Notes

24TLS0318U-447874-1415925


113

Important NotesForward Looking InformationThis material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts,estimates of yields or returns, and proposed or expected portfolio composition. Moreover, where certain historical performance information of other investment vehicles orcomposite accounts managed by BlackRock, Inc. and/or its subsidiaries (together, “BlackRock”) has been included in this material and such performance information ispresented by way of example only. No representation is made that the performance presented will be achieved, or that every assumption made in achieving, calculatingor presenting either the forward-looking information or the historical performance information herein has been considered or stated in preparing this material. Anychanges to assumptions that may have been made in preparing this material could have a material impact on the investment returns that are presented herein by way ofexample.

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securitiesor to adopt any investment strategy. The opinions expressed may change as subsequent conditions vary. The information and opinions contained in this material arederived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. Thereis no guarantee that any forecasts made will come to pass.

RiskInvesting in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk. Equities may decline in value due to both real andperceived general market, economic, and industry conditions. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to earlyrepayment risk, and while generally backed by a government, government-agency or private guarantor there is no assurance that the guarantor will meet its obligations.High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity riskthan portfolios that do not. Investors will, at times, incur a tax liability. Income from municipal bonds may be subject to state and local taxes and at times the alternativeminimum tax. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closedwhen most advantageous. Investing in derivatives could lose more than the amount invested.

BlackRock makes no representations or warranties as to the accuracy or completeness of the information contained herein, and further nothing contained herein shall berelied upon as a promise by, or representation by, BlackRock whether as to past or future performance results. Past performance is not indicative or predictive of futureperformance.

These materials are being provided for informational purposes only and are not intended to constitute tax, legal or accounting advice. You should consult your ownadvisers on such matters. Additional information is available on request. Information contained herein is believed to be reliable but BlackRock does not warrant itsaccuracy or completeness. Information contained herein represents BlackRock’s own opinions. There can be no assurance that the investment objectives of any strategyreferred to herein will be achieved. An investment in any strategy referred to herein involves a high degree of risk, including the risk that the entire amount invested maybe lost.

This material is not intended to be a recommendation or advice by BlackRock. If this material were construed to be a recommendation by BlackRock, BlackRock wouldseek to rely on Department of Labor Regulation Section 2510.3-21(c)(1). As such, by providing this material to you, a plan fiduciary that is independent of BlackRock,BlackRock does not undertake to provide impartial investment advice or give advice in a fiduciary capacity. Further, BlackRock receives revenue in the form of advisoryfees for our mutual funds and exchange traded funds and management fees for our collective investment trusts.

THIS MATERIAL IS HIGHLY CONFIDENTIAL AND IS NOT TO BE REPRODUCED OR DISTRIBUTED TO PERSONS OTHER THAN THE RECIPIENT.

©2018 BlackRock, Inc. All rights reserved. BLACKROCK, is a registered trademark of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners.

25For use with CalTrust Only - Proprietary and ConfidentialTLS0318U-447874-1415925

114

Agenda Item: 15. Sponsorship Agreements

Information Item Presented By: Laura Labanieh BACKGROUND: Sponsorship agreements with the California Special Districts Association, CSAC Finance Corporation, and League of California Cities were last executed in May 2015. Per CalTRUST policy, contracts are to be reviewed after three years with the possibility of up to two one-year extensions. As such, these contracts are due for review. Staff suggests that the review be delegated to the Products Review or an ad-hoc committee to bring back to the full Board at the next meeting. RECOMMENDATION: Information and discussion. No formal action required.

115

Agenda Item: 16.Client Update & Marketing Information Item Presented By: Laura Labanieh & Kyle Tanaka BACKGROUND: As of September 4, 2018, CalTRUST held $2,626,467,549.94 in assets. The breakdown of the assets is as follows:

• By Agency Type o Counties- $698,234,719.60 o Cities- $678,484,268.67 o Special Districts- $750,721,311.15 o Other (JPA’s, Local Health Plans, Non-Profits)- $499,027,250.52

• By Fund o Liquidity Fund- $155,401,950.33 o Short-Term Fund- $1,417,967,103.64 o Medium-Term Fund- $991,060,259.68 o Money Market Fund- $1,342,329.11 o Government Fund- $60,695,907.18

Outreach Since April, CalTRUST Staff has met with 14 existing CalTRUST participants to garner program feedback and provide educational support. Additionally, staff in coordination with BlackRock, has held meetings with 8 public agencies interested in participating in the program. Events Staff will represent CalTRUST and attend the following conferences this fall.

• California Special Districts Association (CSDA) Annual Conference, September 24-27, Indian Wells

• California Transit Association Annual Conference, October 24-26, Long Beach • California Association of Resource Conservation Districts (CARCD) Annual

Conference, November 14-17, San Diego • Association of California Water Agencies (ACWA) Fall Conference, November

27-29, San Diego • League of California Cities Municipal Finance Institute, December 13-14, San

Francisco RECOMMENDATION: Information only.

116

$1,417,967,103.64 $991,060,259.68

$155,401,950.33

$60,695,907.18

$1,342,329.11

Assets by Fund $2,626,467,549.94

(9/4/18)

Short-Term Fund

Medium-Term Fund

Liquidity Fund

FedFund

TempFund

117

$698,234,719.60

$678,484,268.67 $750,721,311.15

$499,027,250.52

Assets by Participant $2,626,467,549.94

(9/4/18)

County

City

Special District

Other (Local Health Plans, Non-Profits, JPA)

118

22

37 65

16

Number of Participants by Entity (9/4/18)

County

City

Special District

Other (Local Health Plans, Non-Profits, JPA)

119

Date 6/30/03 12/31/03 6/30/04 12/31/04 6/30/05 12/31/05 6/30/06 12/31/06 6/30/07 12/31/07 6/30/08 12/31/08 6/30/09 12/31/09Assets $80,862,393.67 $33,183,349.45 $33,003,807.70 $32,970,733.61 $107,053,991.74 $163,116,997.39 $208,332,277.03 $370,576,342.75 $465,774,666.67 $586,037,334.40 $622,797,079.44 $530,541,331.12 $642,647,650.15 $732,854,713.14Participants 4 1 1 1 7 15 23 30 34 38 47 43 46 55

$50,000,000.00

$550,000,000.00

$1,050,000,000.00

$1,550,000,000.00

$2,050,000,000.00

$2,550,000,000.00

$3,050,000,000.00

Assets

Assets

0

20

40

60

80

100

120

140

Par6cipants

120

Name Fund MarketValueABAGFINANCEAUTHORITY Medium-TermFund $1,034,483.22ALAMEDACOUNTY Short-TermFund $39,950,149.56ALBANY,CITYOF Short-TermFund $2,387,532.62ALPHAFUND Short-TermFund $0.33ASSOCOFCALIFORNIAWATERAGENCIES Short-TermFund $373,528.24ASSOCOFCALIFORNIAWATERAGENCIES Medium-TermFund $4,075,696.95BAYAREASCHOOLSINSURANCECO-OP Short-TermFund $509,859.22BAYAREASCHOOLSINSURANCECO-OP Medium-TermFund $2,516,599.79BAYAREATOLLAUTHORITY Medium-TermFund $206,685,955.94BEAUMONT-CHERRYVALLEYWATERDISTR Short-TermFund $31,219,864.21BELLFLOWER,CITYOF Short-TermFund $48,076.38BEVERLYHILLS,CITYOF Short-TermFund $33,095,195.12BUTTECOUNTY Short-TermFund $4,669.93CAASSOCOFCOUNTYTREASURERS&TAX FedFund $309,859.01CACOUNTIESFOUNDATION Short-TermFund $134,951.51CALIFORNIASPECIALDISTRI Short-TermFund $2,154,921.83CALIFORNIASPECIALDISTRI Medium-TermFund $929,688.48CASTROVALLEYSANITARYDISTRICT Medium-TermFund $100,640.69CASTROVILLECOMMUNITYSERVICESDIST Medium-TermFund $2,345,173.20CAYUCOSSANITARYDISTRICT Medium-TermFund $455,542.92CENTRALCAALLIANCEFORHEALTH Short-TermFund $107,331,371.89CENTRALCAIRRIGATIONDIS Short-TermFund $8,406.65CENTRALCAIRRIGATIONDIS Medium-TermFund $5,917,621.52CHINOBASINWATERCONSERV Short-TermFund $5,753,399.07CHINOVALLEYINDEPENDENTFIREDISTR Medium-TermFund $1,079,166.43CHINO,CITYOF Short-TermFund $529,516.93CHINO,CITYOF Medium-TermFund $48,688,573.71CITYOFCONCORDSEWERFUND Medium-TermFund $12,046,118.41COACHELLAVALLEYMOSQUITO&VECTOR Medium-TermFund $493,381.00CONCORD,CITYOF Short-TermFund $4,120,714.12CONCORD,CITYOF Medium-TermFund $5,317,339.44CONSOLIDATEDCENTRALVALL Medium-TermFund $278,202.51CONTRACOSTACOUNTY Short-TermFund $135,500,295.20CONTRACOSTACOUNTY LiquidityFund $85,007,249.29COUNTYSUPERVISORSASSOC Short-TermFund $5,518,517.51CPSHUMANRESOURCESERVIC Short-TermFund $2,365,580.00CPSHUMANRESOURCESERVIC Medium-TermFund $751,947.78CRESTLINESANITATIONDISTRICT Short-TermFund $209,879.81CRESTLINESANITATIONDISTRICT Medium-TermFund $117,922.57CSACFINANCECORPORATION Short-TermFund $416,699.60CSACFINANCECORPORATION Medium-TermFund $1,560,321.15

121

CSACFINANCECORPORATION LiquidityFund $10,008,683.64CSACFINANCECORPORATION FedFund $20.55CSACFINANCECORPORATION TempFund $27.92CSDAADVOCACYFUND Short-TermFund $56,427.90CSDAADVOCACYFUND Medium-TermFund $208,386.65CSDAFINANCECORPORATION Short-TermFund $9,094.81CSDAFINANCECORPORATION Medium-TermFund $21,527.02CUTLERPUBLICUTILITYDISTRICT LiquidityFund $505,393.10DELNORTECOUNTY Medium-TermFund $441,805.49DELNORTECOUNTY-GENERALACCOUNT Medium-TermFund $430,013.94DELANO,CITYOF Medium-TermFund $3,792,623.71DUDLEYRIDGEWATERDISTRICT Short-TermFund $1,840,448.60DUDLEYRIDGEWATERDISTRICT Medium-TermFund $300,324.12EASTERNMUNICIPALWATER Short-TermFund $20,618,421.79EASTERNMUNICIPALWATER Medium-TermFund $20,462,485.11ELCENTRO,CITYOF Short-TermFund $15,726,177.85ELCENTRO,CITYOF Medium-TermFund $36,688,668.00ELDORADOLOCALAGENCYFORMATIONCO Short-TermFund $71,119.50ELDORADOLOCALAGENCYFORMATIONCO Medium-TermFund $14,000.32ELKGROVE,CITYOF Medium-TermFund $19,782,507.09FALLBROOKREGIONALHEALTHDISTRICT Medium-TermFund $6,744,762.76FLORINRCD/ELKGROVEWATERDISTRICT Medium-TermFund $1,280,868.66FRESNOKINGSMADERARHADBACALVIVA Short-TermFund $27,994,568.18GARDENA,CITYOF Short-TermFund $2,066,264.88GARDENA,CITYOF Medium-TermFund $6,170,552.61GOLDCOASTHEALTHPLAN Short-TermFund $51,862,491.28GPSCVB Short-TermFund $2,008,086.20GPSCVB LiquidityFund $1,003,792.97GREATERLACOUNTYVECTORCONTROL Medium-TermFund $2,172,334.18GREATERLACOUNTYVECTORCONTROL FedFund $1,518,710.83GSFAHOMEBUYERSFUND Short-TermFund $7,631,496.18GSFAHOMEBUYERSFUND Medium-TermFund $4,001,326.62GSFAHOMEBUYERSFUND-BUILDING Short-TermFund $708.53GSFAHOMEBUYERSFUND-BUILDING Medium-TermFund $8,112,668.87HAOFTHECITYOFSANTABARBARA LiquidityFund $5,137,113.93HAOFTHECITYOFSANTABARBARA FedFund $2,132,000.00HELENDALECOMMUNITYSERVI Short-TermFund $2,057,926.76HELENDALECOMMUNITYSERVI Medium-TermFund $2,064,372.57HERCULES,CITYOF Short-TermFund $19,094.96HERLONGPUBLICUTILITYDISTRICT Medium-TermFund $35.24HERLONGPUBLICUTILITYDISTRICT FedFund $521,371.38INLANDEMPIRERCD-CENTEXSYCAMORE Medium-TermFund $122,451.41

122

INLANDEMPIRERCD-GENERALSAVINGS Short-TermFund $5,850,234.99INLANDEMPIRERCD-GOOSECREEKGC Medium-TermFund $10,913.98INLANDEMPIRERCD-LEGALDEFENSE Medium-TermFund $78,304.04INLANDEMPIRERCD-PROLOGISBEAUMONT Medium-TermFund $472,456.68INLANDEMPIRERCD-PROLOGISONTARIO Medium-TermFund $284,178.27INLANDEMPIRERCD-VILABORBA Medium-TermFund $200,001.15INLANDEMPIRERESOURCECONSERVATION Medium-TermFund $120,335.27INSTITUTEFORLOCALGOVERNMENT Medium-TermFund $1,002.42IRONHOUSESANITARYDISTRICT Short-TermFund $3,600,096.60IRONHOUSESANITARYDISTRICT Medium-TermFund $4,055,211.29JACKSON,CITYOF Medium-TermFund $795,685.80JAMESIRRDIS-WTRBANKINC Medium-TermFund $1,997,786.62JAMESIRRIGATIONDISTRICT Short-TermFund $1,559,100.72KAWEAHDELTAHEALTHCAREDISTRICT Medium-TermFund $20,766,922.34KINGSRIVERCONSERVATION Medium-TermFund $236,666.49KINNELOAIRRIGATIONDISTRICT Medium-TermFund $1,151,831.68LAFAYETTE,CITYOF Short-TermFund $4,086,426.35LAFAYETTE,CITYOF Medium-TermFund $1,679,375.54LAGUNAHILLS,CITYOF Short-TermFund $512,658.06LAGUNAHILLS,CITYOF FedFund $760,999.70LAKEHEMETMUNICIPALWATERDIST Short-TermFund $520,903.00LAKEHEMETMUNICIPALWATERDIST Medium-TermFund $4,875,030.91LARKSPUR,CITYOF Short-TermFund $6,929,423.02LARKSPUR,CITYOF Medium-TermFund $5,388.39LEAGUEOFCACITIES-BALLOTMEASUR Short-TermFund $3,533,469.77LEAGUEOFCACITIES-BUILDIMPROV Medium-TermFund $4,680,216.50LEAGUEOFCACITIES-CAPITOLASSET Medium-TermFund $251,148.23LEAGUEOFCACITIES-CITIPAC Medium-TermFund $672,419.82LEAGUEOFCACITIES-LATINOCAUCUS Short-TermFund $318,957.48LEAGUEOFCACITIES-WORKERSCOMP Short-TermFund $18,646.86LEAGUEOFCALIFORNIACITIES Short-TermFund $1,713,449.56LEAGUEOFCALIFORNIACITIES Medium-TermFund $18,933,938.12LODI,CITYOF Medium-TermFund $12,439,601.30MAMMOTHCOMMUNITYWATERDISTRICT Short-TermFund $3,831,457.82MAMMOTHCOMMUNITYWATERDISTRICT Medium-TermFund $4,088,760.98MARTINEZ,CITYOF Short-TermFund $1,041,960.92MAXWELLIRRIGATIONDISTRICT Short-TermFund $457,627.14MCKINLEYVILLECSD Short-TermFund $206,586.67MCKINLEYVILLECSD Medium-TermFund $6,250,187.07MIDPENINSULAREGIONAL Medium-TermFund $1,546,581.95MISSIONSPRINGSWATERDISTRICT Short-TermFund $4,859,343.10MISSIONSPRINGSWATERDISTRICT Medium-TermFund $20,323,280.87

123

MISSIONSPRINGSWATERDISTRICT LiquidityFund $2,104,173.68MODOCCOUNTY Medium-TermFund $2,179,305.24MONTEREYCOUNTY Short-TermFund $133,810,558.94MONTEREYCOUNTY LiquidityFund $10,000,000.00MONTEREYCOUNTY FedFund $1,000,000.00MONTEREYPENINSULAREGPA Short-TermFund $2,773,853.57MONTEREYPENINSULAREGPA Medium-TermFund $8,348,284.21MONTEREYPENINSULARPD-SEAWALLMIT Short-TermFund $2,391,600.55NATIONALASSOCIATIONOFC Short-TermFund $1,097,771.42NATIONALASSOCIATIONOFC Medium-TermFund $570,386.04NATIONALCITY Short-TermFund $43.51NATIONALHOMEBUYERSFUND Short-TermFund $9,596,374.31NATIONALHOMEBUYERSFUND Medium-TermFund $30,581,428.70NORTHOFTHERIVERMUNICIPALWATER Short-TermFund $1,708,211.67NORWALK-BONDPROCEEDS,CITYOF Medium-TermFund $10,201,063.85NORWALK-LOWMODHOUS,CITYOF Medium-TermFund $9,974,764.37NORWALK,CITYOF Short-TermFund $101,217.89NORWALK,CITYOF Medium-TermFund $4,779,692.28OAKLEY,CITYOF Short-TermFund $9,333,710.06OILDALEMUTUALWATERCOMPANY Short-TermFund $1,274,977.02OILDALEMUTUALWATERCOMPANY Medium-TermFund $7,353,105.75OJAI,CITYOF Medium-TermFund $776,740.94ORANGECOUNTYCEMETERYDISTRICT Medium-TermFund $8,531,131.81ORCHARDDALEWATERDISTRICT Short-TermFund $1,834,980.67ORCHARDDALEWATERDISTRICT Medium-TermFund $101,156.56PALMRANCHIRRIGATIONDISTRICT Medium-TermFund $894,193.82PALMSPRINGS,CITYOF Short-TermFund $29,344,875.01PASOROBLESHA,CITYOF Medium-TermFund $910,661.71PHELANPINONHILLSCOMMUNITYSRVDT Medium-TermFund $2,022,639.30PINOLE,CITYOF Short-TermFund $23,293.10PINOLE,CITYOF Medium-TermFund $3,081,572.96POTTERVALLEYIRRIGATIONDISTRICT Medium-TermFund $412,504.37POWAY,CITYOF Short-TermFund $10,876,507.06POWAY,CITYOF Medium-TermFund $10,887,280.98RANCHOSANTAFEFIREPROTECTION Medium-TermFund $4,572,224.10RCDSMM-CAPITALPLANNINGFUND Medium-TermFund $50,368.36RCDSMM-CONSERVATIONEASEMENT Medium-TermFund $25,270.54RCDSMM-LVUSDCEENDOWMENT Medium-TermFund $235,616.30RCDSMM-RESERVEFUND Medium-TermFund $151,623.23REGIONALCOUNCILOFRURAL Short-TermFund $313,126.24REGIONALCOUNCILOFRURAL Medium-TermFund $7,679,402.22REGIONIALGOVERNMENTSVSAUTH Short-TermFund $217,142.57

124

REGIONIALGOVERNMENTSVSAUTH Medium-TermFund $1,779,552.96RIALTO-SUBACCOUNTA,CITYOF Short-TermFund $4,051,529.33RIALTO/LEWIS-ALDER,CITYOF Short-TermFund $3,128,742.43RIALTO/LEWIS-LAUREL,WALNUT,LOCUST Short-TermFund $2,860,903.72RIALTO/LEWIS-MIROWAY,CITYOF Short-TermFund $3,450,614.78RIALTO/LEWIS,CITYOF Short-TermFund $460,434.27RICHMONDMARINABAYHARBOR,CITYOF Medium-TermFund $82,750.79RICHMOND,CITYOF Short-TermFund $24,725,207.51RIVERSIDECOUNTY Short-TermFund $24,000,000.00RIVERSIDE,CITYOF Short-TermFund $144,034,719.24ROSAMONDCOMMUNITYSVSDISTRICT Short-TermFund $3,525,807.87ROSAMONDCOMMUNITYSVSDISTRICT Medium-TermFund $9,466,867.44ROSAMONDCOMMUNITYSVSDISTRICT FedFund $502,588.02ROSS,TOWNOF Short-TermFund $7,572,511.51ROSS,TOWNOF TempFund $1,334,361.44RTAGENERALOPERATING Short-TermFund $14,094,854.41RTALCTOPOPERATINGFY16 Short-TermFund $1,041,821.91RTALCTOPOPERATINGFY17 Short-TermFund $511,970.03RTALCTOPOPERATINGFY18 Short-TermFund $1,313,994.86RTAPROP1BPTMISEAFY15 Short-TermFund $12,608,297.30RTAPROP1BSECURITYFY12 Short-TermFund $99,807.28RTAPROP1BSECURITYFY13 Short-TermFund $147,866.94RTAPROP1BSECURITYFY14 Short-TermFund $933,852.21RTAPROP1BSECURITYFY15 Short-TermFund $939,216.51RTAPROP1BSECURITYFY16 Short-TermFund $926,079.92RTAPROP1BSECURITYFY17 Short-TermFund $740,402.98RTATUMF Short-TermFund $16,385,898.33SACRAMENTOHOUSING&REDE Short-TermFund $27,293,871.04SACRAMENTOHOUSING&REDE FedFund $3,036,900.19SACRAMENTOREGTRANSITDIST-DEVFEE Short-TermFund $10,786,866.75SACRAMENTOREGIONALTRANSITDIST Short-TermFund $5,411,385.48SACRAMENTO,CITYOF Short-TermFund $33,037,857.65SACRAMENTO,CITYOF Medium-TermFund $20,873,842.06SACRAMENTO,CITYOF LiquidityFund $10,023,461.75SACRAMENTO,CITYOF FedFund $10,306,596.06SALINASVALLEYBASINGROUNDWATER Medium-TermFund $1,205,735.55SANBERNARDINOVALLEYWATERCONSERV Short-TermFund $3,059,256.81SANBERNARDINO,CITYOF Short-TermFund $20,259,386.67SANDIEGOCOUNTY $0.00SANDIEGOCOREGIONALAIRPORTAUTH Short-TermFund $15,579,581.69SANDIEGOUNIFIEDPORTDISTRICT Short-TermFund $6,651,046.22SANDIMAS,CITYOF Medium-TermFund $11,189,095.44

125

SANGORGONIOPASSWATERAGENCY Short-TermFund $5,154,068.49SANGORGONIOPASSWATERAGENCY Medium-TermFund $14,793,054.33SANLUIS&DELTA-MENDOTA Short-TermFund $5,302,107.03SANLUIS&DELTA-MENDOTA Medium-TermFund $13,095,729.48SANLUISOBISPOCOUNTY Short-TermFund $69,880,309.18SANTABARBARACOUNTYESCROW Short-TermFund $547.02SANTABARBARASANLUISOBISPOREGIO Short-TermFund $108,401,373.84SANTABARBARASANLUISOBISPOREGIO Medium-TermFund $113,212,439.87SOLANOCOUNTY Short-TermFund $20,017,392.72SOLANOCOUNTY Medium-TermFund $9,898,509.14SOLANOCOUNTY LiquidityFund $22,070,894.22SOLANOCOUNTY FedFund $36,700,000.00SONOMACOUNTY FedFund $3,142,440.83SOUTHFEATHERWATER&POWER Short-TermFund $376.46SOUTHFEATHERWATER&POWER Medium-TermFund $1,313,764.74SOUTHPLACERMUNICIPALUTILITYDIST Short-TermFund $4,113,346.49SOUTHPLACERMUNICIPALUTILITYDIST Medium-TermFund $15,231,777.22SPECIALDISTRICTSLEADERSHIPFDTN Short-TermFund $31,580.59STATEASSOCOFCTYRETSYS(SACRS) Medium-TermFund $1,134,371.20STATEASSOCOFCTYRETSYS(SACRS) FedFund $764,420.61STATEASSOCOFCTYRETSYS(SACRS) TempFund $7,939.75STOCKTONTRAN,CITYOF Short-TermFund $1,051.99SUCCESSORAGENCYTOCHINORDA Short-TermFund $497,467.93SUCCESSORAGENCYTOCHINORDA Medium-TermFund $5,645,647.17THESANTALUCIACOMMUNITYSERVICES Short-TermFund $363,718.19THESANTALUCIACOMMUNITYSERVICES Medium-TermFund $751,196.31TRANSAUTHOFMARINVRFFUND Short-TermFund $520,205.16TRANSAUTHOFMARINVRFFUND Medium-TermFund $3,142,731.91TRANSAUTHOFMARIN/SALESTAXFUND Medium-TermFund $39,509,736.38TRANSAUTHOFMARIN/TFCAFUND Short-TermFund $520,205.16TRANSAUTHOFMARIN/TFCAFUND Medium-TermFund $844,933.60TRANSPORTATIONAUTHORITYOFMARIN Short-TermFund $830,938.66TRANSPORTATIONAUTHORITYOFMARIN Medium-TermFund $2,031,212.21TULAREIRRIGATIONDISTRICT Medium-TermFund $1,023,970.66TULARELOCALHEALTHCAREDISTRICT Short-TermFund $1,866.27TULARELOCALHEALTHCAREDISTRICT Medium-TermFund $5,584.61VALLEYSANITARYDISTRICT Medium-TermFund $1,009,929.09VENTURACOUNTY Short-TermFund $24,965,089.76VICTORVALLEYWASTEWATERRECLAMAUT Short-TermFund $3,120,536.09VICTORVALLEYWASTEWATERRECLAMAUT Medium-TermFund $3,008,633.06VILLAPARK,CITYOF Medium-TermFund $923,716.92WASCO,CITYOF Short-TermFund $1,520,576.33

126

WASCO,CITYOF Medium-TermFund $3,028,877.51WATERFACILITIESAUTHORITY Short-TermFund $534,888.86WATERFACILITIESAUTHORITY Medium-TermFund $2,315,804.11WESTVALLEYMOSQUITOAND Short-TermFund $363,544.90WESTVALLEYMOSQUITOAND Medium-TermFund $101,170.42WESTVALLEYWATERDISTRICT Short-TermFund $14,979,077.22WESTVALLEYWATERDISTRICT Medium-TermFund $10,103,978.48WESTLANDSWATERDISTRICT Short-TermFund $18,539,617.21WESTLANDSWATERDISTRICT Medium-TermFund $59,117,091.42WESTLANDSWATERDISTRICT-LAND&WATER Short-TermFund $1,836.70YORBALINDAWATERDISTRICT Short-TermFund $65.84YORBALINDAWATERDISTRICT Short-TermFund $7.36YORBALINDAWATERDISTRICT Short-TermFund $4,384.92YORBALINDAWATERDISTRICT Short-TermFund $1,333,094.51YORBALINDAWATERDISTRICT Short-TermFund $0.35YORBALINDAWATERDISTRICT Medium-TermFund $117,382.81YORBALINDAWATERDISTRICT Medium-TermFund $804,941.23YORBALINDAWATERDISTRICT Medium-TermFund $1,253,229.18YORBALINDAWATERDISTRICT Medium-TermFund $3,676,355.02YORBALINDAWATERDISTRICT Medium-TermFund $1,134,555.44YORBALINDAWATERDISTRICT Medium-TermFund $6,820,647.65YORBALINDAWATERDISTRICT Medium-TermFund $3,967,710.80YUBACOUNTY LiquidityFund $9,541,187.75

127