Good afternoon. Call the order, the subcommittee meeting for what is today? April 4th, I believe. Third, my apologies. It's been one of those days. You should know Carl's markets were crazy today. So call the order at 501-05 today. Roll call for subcommittee attendees. Adrian Henson, President John Winnie, President. Next. 501.05 today roll call for subcommittee attendees, Adrian Henson. President. John Winnie, President. Next on the agenda is to pledge of allegiance. So led by Adrian, please. All right, please rise. If you're able to join me in the pledge of allegiance. Pledge of allegiance to flag of the United States of America and to the Republic for which it stands. One nation, under God, indivisible, liberty and justice for all. Thank you, Adrian. Any presentations, which I said is none. Is there any public input? We have not received any public input for this meeting. Okay, thank you. Regular business agenda number one is the approval of minutes for the February 27th, 2025 meeting. Can I hear a motion to approve? Motion to approve. And I will second any discussions. All right. Roll call vote. Adrian, Yehrenay, Yeh. John Wendy, Yeh. Motion passes two to one. Two to zero. My man, you said it's been a long day. Agenda number two, review of the February 2025 investment report Motion to approve on our actually we're gonna listen to that right now Put you on a stage here and thank you for very much for joining us and let's go get at it so to speak All right, absolutely no problem. Let me get my screen shared I guess I can start here. Oh yeah. As John had just mentioned today was a caller's day for equities. Yeah, Carl, we're seeing your Bloomberg display real quick to see So the NASDAQ finished down almost 6%. Yep. The Dow was down almost 4% SMP almost 5%. It was a pretty devastating day for equities out there today. Let's talk about the bond market though because that's why we're all here. Let me get this thing full screen. All right. Since the last time we spoke, the Federal Reserve had the March FOMC meeting, I believe that was since the last time we spoke, they left the Fed Fundrate unchanged at four and a quarter, feel very comfortable leaving it and waiting to see for clarity on fiscal policy. And I don't know if we can say that Liberation Day gave us, I guess you could say that it gave us some clarity. That's pretty much been the talk of the town of not the whole world has been tariffs. When I say Liberation Day, April 2nd, the Trump administration delineated the tariff – or outline, I should say, the tariff program with a 10 percent minimum tariff on all imports and reciprocal tariffs, proportionally, depending on the product commodity and the import from different regions. I'm not going to get too far into that, but needless to say, the market, the equity market didn't like it. We see growth likely in the short term slowing with the tariffs with the shift in fiscal policy. It is likely going to affect at least growth in the short term. In a little bit of a positive note, the second quarter, I should say, the second revision of fourth quarter GDP was revised up to 2.4% from 2.3% in the fourth quarter. Inflation came in a little hotter. Of course, we talked about that in January, but it is reverted to adequate, or I say levels consistent with the monetary policy and the Fed's target of getting down to that 2% inflation target in probably around late 2026 to maybe 2027 now with it being offset a little bit with inflation perhaps having a short-term effect or a short-term increasing effect from the installation of these tariffs. Let's see, the net effects of all the news since the last time we spoke is especially today, yields across the yield curve are lower. The two-year treasury, as I wrote this, my notes here was at 392, but we're probably more at about 365 on the two-year today as of Market Clothes. We're below 4% all the way out to the seven-year. I think the 10-year briefly went under 4% today. So, shorter or yields have been lower. That means people are bidding up bonds. It's a safe haven trade. That's where money was flowing from the equity market today. And it is consistent with our view that interest rates are going to be lower in toward the end of 2025 and into 2026 and monetary policy will be easing completely consistent with our view. So I'll run through this, I'll run through a few of these slides here just to kind of reinforce this. If we're looking at the labor market, we see normalization here. We get the non-parameterials report for February or March now. Can't believe it. Time's flying, but March we get tomorrow. It's supposed to be right around 150,000 jobs again. We printed 150,000 in February. So that's not really indicative of any kind of material slowing of job growth or creation. The unemployment rate ticked up just to 4.1% in February, but that's still low. It's lower than the rate of full employment at about 4.5% by the Congressional Budget Office. Job openings still above the 20-year average quite substantially, but again, you see that normalizing channel there. And inflation. Now, this is going to be something that we're going to be watching very closely here in the next few months, and of course the Federal Reserve will be too. Like I had mentioned, we got a little bit of a hot inflation read in January, but then it reverted back to lower. This is all of this presentation is for February month and so we're going to have a lot of these figures consistent with January and February numbers. But again, we're back below that 3% threshold and most of these inflation metrics as of February. So we'll see how that filters into the rest of the near term. And we got a little bit of a rep you know, a reprieve here in January for retail sales, but that came back a little bit stronger in February. And again, we have still year over year positive change in retail sales, consistent and nothing negative since COVID. So the consumer buoyed by that strong labor market continues to remain relatively resilient. It might be worth noting that the soft data, as we like to say, and you may have been hearing in the financial news media, has been dwindling and it's been diverging from the hard data. And what that means is consumer confidence measures and a lot of these household surveys have been showing less confidence in the near and six-month-tense terms for the job market, inflation, inflationary pressure, and just the general state of the economy. Leading indicators, not get too far into this, you know, but we have seen relatively relative improvement in both the LEI and the CFNII as of lately. Like I mentioned, if this continues, which is all subject to fiscal policy now, you know, that would be indicative certainly of soft landing, but with the pressure in the equity markets that we saw today and in the last month or so, we're really, in some cases already in correction territory. Those are those feed into both of these metrics here. The yield curve is actually flattened a little bit, but it's still not inverted. Housing starts have been kind of trucking right along. You know, the case stillers, we're still above four, we're right around 4% there there on your over your home price appreciation. So the not too much has changed there in the housing market. And we actually got the ISM services today. This ticked down a little bit but it's still in positive or it's still in the expanding territory I I should say above 50 as is the Manufacturing so we have two more data points here like I have always said we're looking for the trend of both of these being on the same side of the diffusion index and Currently, they're both in the expanding territory And again, I mentioned off the top we the second revision here to fourth quarter GDP was up to 2.4% from that 2.3%. Fed policy in at the March FOMC meeting, they wanted to be clear and said that they are changing the pace of balance reduction for U..S. treasuries. They're reducing the roll, the balance sheet roll off from $25 billion a month to $5 billion a month as a cap, but they're leaving the MBS roll off the same at $35 billion a month. And it's not necessarily – we're not taking that as a shift in monetary policy. They're doing that kind of for the plumbing of the financial system to make sure as we approach the debt ceiling and ultimatum here are coming that we're going to have sufficient funding after that has resolved in the overnight and repo markets. But it's going to be less rolloff for longer, so we'll see this kind of moderate, but it'll still continue to go lower. And you know, this will start being sideways here for the next few months. We do believe that, especially now, after today, if we start seeing a material shift in slowing of the economy, that might motivate the Fed to start easing monetary policy sooner. But as we stand, we're consistent with our view in the next six months, five to six months, we'll likely have a 25 basis point reduction. So we'll get into that four to four and a quarter range of Fed Fundrate and it's our Chandler view that will have likely two so toward the end of the year in December we'll have another one 25 basis points lower so we'll get to that 375 to 4% level. Here what we're starting to see is develop is a very gradual downward trend across the yield curve. I had mentioned before that we're seeing firm resistance at 5% and support at 4%, but we breached that 4% level here. And we had breached it again. It tested it in February and now here in early April, you know, fiscal year or fourth quarter for you guys. We're going to be having a lower low and again, we're starting to see this trend develop which is again is consistent with our view of Chandler for lower rates, a bull steepening of the yield curve led by lower rates in the front end of the yield curve. So the two to 10 year treasury spread is positive by about 28 basis points as of this morning. And then check it at the end of the day, but we anticipate this, the front end to come down more, get down to this three and a half, three and a three and three quarters area and start being a more normalized yield curve moving forward and now further out. Any questions before we get into the portfolio characteristics? Oh, thanks, Carl. I'm sure that we really have time for everything that's going on. I don't know. Anyway, so let's talk about the portfolio a little bit here. Of course, our objectives are always safety of preservation of capital, adequate liquidity, and then a reasonable rate of return, gauged by our benchmark. And we invest in high quality fixed income securities, and we're certainly in full compliance with California Government Code and the City of Tusson's investment policy. Three pages of compliance there, and here we go with the portfolio summaries. Let's start with the consolidated portfolio. That's what you're looking at here with all of this information, but this concludes the one to five-year Chandler mid-deration strategy, the Chandler liquidity fund, your lay holdings, your camp holdings, your money market holdings, and bank holdings that are reported to Chandler. As of the end of February 20, or February 28, 2025, total market value of all reported assets, financial assets, or 200 and 3 million 155610. The modified duration on that is 1.02. The purchase yield is at 396. 3.96% that is average final maturity and aggregate is 1.14 years. And the percentage of consolidated holdings maturing in less than six months is 64.7%. Just a tick down from 66.2% as of 1.30 of January 31st. I think we have here just kind of visually for you, but then we also have the Chandler 1-5-year strategy here. The modified duration actually increased, which is a very good thing, especially after a day like today, we went from 233 at the end of January to 237 at the end of February. And we're probably a little bit longer than that as of today. The purchase yield, we increased to 3.44% from 3.32%, also a good thing, and the market yield decreased to 4.27 from 4.47 at the end of January, but again, that 4.26 is antiquated as of right now because the purchase yield or the market yield is going to be, I'll tell you, it's probably under 4% now. Total market value of the 1-5-year strategy is $86,747,000. It's right here 594 and Just I don't have the liquidity portfolio on here, but I might as well mention it's the The latest reading for late was 431 431 percent camp yield is down to 447 and your Chandler liquidity portfolio total market value is 17,230,458 and the purchase yield on the liquidity portfolio is 4.76%, which is very nice right now with rates going substantially lower. When we're looking at these total rates of return our our three-month is going to probably be, you know, it's certainly a very volatile market, but I would not be surprised to see these increase during our next report given the move that we have seen in the bond market as of recently. And I guess that's pretty much all I was planning on reporting to the committee here, more than happy to answer any further questions. Carl, thank you very much. There was definitely a lot to digest from today's market movements. I mean, today was pretty historic day in a lot of ways. So thank you for this summation on that and kind of anticipating where we're going from here on that. Yeah, there's a lot of questions we have, but I don't think there at this time, it would be more speculation than anything to ask these questions because we've just got to see how this all shakes out. So I do say from our point that considering what happened today, we're in pretty good position, especially where we invest in as far as the city is concerned, where you invest in. So thank you for that, Adrian, any questions? Okay. So with that, I say thank you, and then we come back and see this next month and see where we're at. I think that's when the questions will come up and all that. Yeah, exactly. Every month here is going to be a very interesting moving forward. That's for sure, John. And again, it's on the portfolio is very well positioned for a day like today. And it is certainly right in line with our viewer Chandler. So we'll be looking forward to the short-term results on our next call. Yeah, for sure. Now I appreciate the yields are going to move and it'll be more favorable on this end on those things. So thank you very much. I know there's a lot to digest and to dive all, so to speak. So thanks for breaking it down and after a shell shot kind of day today. So appreciate it Carl. Absolutely. Very welcome. Right on. Now that's done a motion to approve the February 2025 investment report. Move to approve. I'll second that. Rocaul, Adrian. Present. Or Ye and A. Oh I'm sorry. Rocaul. Sorry my bad. All right. John, one day I'll say yay. Motion passes to zero. Moving forward to the next agenda item. Is there any committee or staff comments? No, I don't comments from staff. All right. I'm assuming Adrian, no comments. I'm sorry. Any comments? No. OK. All right. With that being said, the next meeting of the Investment Subcommittee will be scheduled for 5 p.m. on in May on a date to be determined. And at 521-22, I will call the meeting to adjournment. Thanks, Carl. Have a good day, man. Thanks a lot. You guys next time. All right. Take care.