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HomeMy WebLinkAbout04 QUARTERLY INVESTMENT REPORT FOR QUARTER ENDED SEPTEMBER 30, 2025Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D 4 Agenda Item Reviewed Mit ia' 1W AGENDA REPORT City Manager rats Finance Director 4�— MEETINGDATE: NOVEMBER 4, 2025 TO: ALDO E. SCHINDLER, CITY MANAGER FROM: JENNIFER KING, FINANCE DIRECTOR/CITY TREASURER SUBJECT: QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY FOR THE QUARTER ENDED SEPTEMBER 30, 2025 SUMMARY: Government Code Section 53646 requires that the Treasurer make an Investment Report to the City Council at least quarterly showing balances by authorized investment and certifying its compliance with the adopted Investment Policy. RECOMMENDATION: Receive and file. FISCAL IMPACT: There is no fiscal impact associated with this item. CORRELATION TO THE STRATEGIC PLAN: Correlates with the City's Strategic Plan Goal C: Financial Strength, Item 3. This investment report provides evidence of the City's commitment to ensure that investments are in compliance with the adopted investment policy. BACKGROUND AND DISCUSSION: In compliance with Government Code Section 53646, the attached Investment Report for the City of Tustin and the Successor Agency for the Tustin Community Redevelopment Agency for the quarter ended September 30, 2025 is rendered. The City's total cash and investments amounted to approximately $195 million as of September 30, 2025. The weighted average yield for the investment portfolio was 3.94%, which is slightly lower than the weighted average portfolio yield for the prior quarter. In September, the Federal Reserve lowered the Federal Funds Rate by .25% in response to Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D City Council Agenda Report Quarterly Investment Report for the Period Ended September 30, 2025 November 4, 2025 Page 2 concerns over a cooling job market, evidenced by downward revisions of employment data during the quarter. The most recent national unemployment rate from August 2025 inched up to 4.3% from 4.2% in July. However, other economic indicators continue to show stronger than expected consumer spending and moderate economic growth. The Consumer Price Index (CPI) for August rose 2.9% year -over -year, still above the Federal Reserve's 2% target. The 2-year Treasury yield declined to 3.57% by September 2025, compared to a yield of 3.72% in June 2025. Similarly, the 5-year Treasury yield dropped to 3.66% by September 2025, compared to a yield of 3.8% in June 2025. PARS Pension Trust As part of the City's pension pay -down plan, the City has made contributions totaling $13.6 million to a Pension Trust held by Public Agency Retirement Services (PARS). A Pension Trust provides rate stabilization since its assets can be used to offset unanticipated increases in CalPERS pension costs. Pension Trust assets are managed in a customized investment strategy that balances risks and return and provides for diversification. The City's Pension Trust assets amounted to $18.4 million on September 30, 2025. The five-year annualized return for the PARS Pension Trust Fund was 7.09%. PARS OPEB Trust The City has made $4 million in contributions into an Other Post -Employment Benefits (OPEB) Trust, also held by PARS. The OPEB Trust contains funds that are set aside for future retiree healthcare costs. Trust assets are managed in a customized investment strategy that balances risk and return and provides for diversification. Assets in the OPEB Trust amounted to $5.5 million on September 30, 2025. The five-year annualized return for the PARS OPEB Trust Fund was 7.08%. Investment Compliance Certification On October 23, 2025, the Audit Commission reviewed the investment report and certified that the portfolio is in compliance with the City's Investment Policy and the California Government Code. In addition, the Treasurer's cash management program and cash flow analysis indicates that sufficient liquidity is on hand to meet estimated operating expenditures for the next six months and the projected cash flow needs for the completion of various capital projects, which include, but not limited to traffic and street improvements, water system improvements, park projects, improvements to public facilities and capital projects at the Tustin Legacy. Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D City Council Agenda Report Quarterly Investment Report for the Period Ended September 30, 2025 November 4, 2025 Page 3 Signed by- 9 6" 4D86AFAFFF77473... Jennifer King Finance Director/City Treasurer Attachments: 1. Investment Report Certification 2. Quarterly Investment Report for the Period Ended September 30, 2025 3. Restricted Deposits with Fiscal Agents as of September 30, 2025 4. PARS Trust Statement as of September 30, 2025 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D FINANCE DEPARTMENT Remembering what connects us. October 23, 2025 Honorable Mayor and Members of the City Council: Re: Investment Report Certification In compliance with California Government Code Section 53646, the attached Investment Report for the Quarter Ending September 30, 2025 is hereby rendered for the City of Tustin and Successor Agency for the Tustin Community Redevelopment Agency (Successor Agency). We certify that this report reflects aLL City of Tustin and Successor Agency pooled cash and investments subject to the provisions of California Government Code and the City's Investment Policy. It has been verified that the investment portfotio is in compliance with the City's Investment Policy. In addition, the Treasurer's cash management program and cash flow analysis indicates that sufficient Liquidity is on hand to meet anticipated expenditures for the next six (6) months. RespectfuLLy submitted, JohnAdfnde, Chair of Tustin Audit Commission v 4 f;D Jennifer King, Finance Director/City Treasurer City of Tustin 300 Centennial Way, Tustin, CA 92780 . 714-573-3060 ■ tustinca.org Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D CHANDLER it% ASSET MANAGEMENT CHANDLER ASSET MANAGEMENT I chandlerasset.com Chandler Team: For questions about your account, please call (800) 317-4747, or contact clientservice(@chandlerasset.com Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement. Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D TABLE OF CONTENTS ECONOMIC UPDATE ACCOUNT PROFILE PORTFOLIO HOLDINGS TRANSACTIONS CHANDLER ASSET MANAGEMENT Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D CHANDLER it% ASSET MANAGEMENT Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D ECONOMIC UPDATE Q11CHANDLER ASSET MANAGEMENT Recent economic data suggest slower growth in 2025 and greater market uncertainty as the effects of fiscal policy unfold. Inflation pressures have eased, though core levels remain above the Federal Reserve's target, while tariffs continue to cloud forecasts. Signs of a softer labor market are emerging, prompting expectations that the Fed will move cautiously toward policy normalization. Given the economic outlook, we expect gradual normalization of monetary policy and a steeper yield curve. The Federal Reserve lowered the Federal Funds Rate a quarter percentage point to the range of 4.00 — 4.25% upon conclusion of the September Federal Open Market Committee meeting. The move was telegraphed by the Fed and in line with market expectations. Stephen Miran was the only opposing vote in the 11-1 decision as Governor Miran called for a larger 50 basis point rate cut. Chair Powell said concerns over signs of a softening labor market prompted the policy shift. Policymakers also updated their economic forecasts penciling in two additional quarter -point cuts through year-end. ■ The US Treasury yield curve flattened in September, as the 2-year Treasury yield declined 13 basis points to 3.57%, the 5-year Treasury also down 13 basis points to 3.66%, and the 10-year Treasury yield declined 14 basis points to 4.12%. The spread between the 2-year and 10- year Treasury yield points on the curve decreased to +54 basis points at September month -end versus +61 basis points at August month - end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was 14 basis points. The spread between the 3- month and 10-year Treasury yield points on the curve was +21 basis points in September versus +8 basis points in August. tl Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D EMPLOYMENT Q11CHANDLER ASSET MANAGEMENT 1,000 FITIrt 0 0 c 600 c 3 400 0 s H v 00 s 0 U 5 0 -200 -400 Nonfarm Payroll (000's) 3-month average (000's) Unemployment Rate 25.0% Underemployment Rate (U6) 20.0% Unemployment Rate (U3) e 15.0% a cv 10.0% 5.0 0.0 Fob, ��g, FPb, ��g F�'b, 9�� Fib, ��g, FP6, ��g, q�'� F0 9el F06 del F0,6 9�� F06. del F0,6 ")p � �1 �� �� �� �� �g �Q �s �s �p �I �I �� �� �,�' �,�' Est Est Source: US Department of Labor Source: US Department of Labor The U.S. economy added just 22,000 jobs in August, falling short of consensus expectations and punctuating the softening trend in the labor market. The three-month moving average and six-month moving average payrolls totaled 29,000 and 64,000 respectively. The unemployment rate rose to 4.3% in August from 4.2% in July. The labor participation rate inched up to 62.3%, remaining below the pre - pandemic level of 63.3%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons jumped to 8.1% in August from 7.9% in July. Average hourly earnings fell to 3.7% year -over -year from 3.9% last month. 4 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D JOB OPENINGS & LABOR TURNOVER SURVEY Job Openings 14,000 Recession 12,000 Historical Average 10,000 0 0 8,000 c �o c 6,000 s H c 4,000 2,000 CHANDLER ASSET MANAGEMENT 0 y4 "9<, q� 94 q4 q� q� q� q4 y4 ,9t,9�• q4 q4 y4 "9<, ,9�. �O "O �O �O "'O ""? �1 �1 "'1 ""? ""? �1 �,Ij "'1 ""? "'� �� �� ""; "'� �� S 6 � cQ 9 O 1 � .�' St S 6 d' 9 O .l � a' Sl S Source: US Department of Labor The Labor Department's Job Openings and Labor Turnover Survey (JOLTS) showed a modest increase to 7.227 million new job openings in August from 7.2 million in July. The quits rate and layoffs remained relatively stable. Job openings indicate a ratio of approximately 1 job for each unemployed individual, representing a relatively balanced labor market. 6� Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D INFLATION 10.0% 9.0 % 8.0 % 7.0 % a I 6.0% M s u 5.0 % 0 4.0 % 0 r 3.0 % 2.0 % 1.0 % 0.0 % Consumer Price Index (CPI) CPI YOY % Change CHANDLER ASSET MANAGEMENT Personal Consumption Expenditures (PCE) 10.0% PCE Price Deflator YOY% Change 9'0% PCE Core Deflator YOY % Change 8.0% Fed Target 7.0 % 6.0% 5.0% 0 r 4.0 % 0 } 3.0% 2.0 % 1.0 70 0.0 % �O �1 �1 �� �� �•�' �a' �Q �Q �S �S �O Source: US Department of Labor Source: US Department of Commerce In August, the Consumer Price Index (CPI) increased more than expected at 0.4% month -over -month and 2.9% year -over -year, while the Core CPI rose 0.3% month -over -month and 3.1% year -over -year, in line with expectations. The Personal Consumption Expenditures (PCE) price index rose 0.3% month -over -month and 2.7% year -over -year in August. The Core PCE deflator, which excludes food and energy and is the Fed's preferred gauge, was up 0.2% from July leaving it unchanged at 2.9% on an annual basis in August. M Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D CONSUMER 60.0% 50.0% 40.0% M s 0 30.0% r 0 20.0% 10.0% 0.0% Retail Sales YOY % Change Foq� Fib q�� Fib b 0 �p �1 ,1 Source: US Department of Commerce 160 140 Recession 120 100 v 80 x 60 c 40 20 .1��■�..�1111�11111 0 FPb q�� F06 Est �Q "-)S �S CHANDLER ASSET MANAGEMENT Consumer Confidence S, S� SP S� SP S, S, S, S, S, S, p0 % p0 a1 b� a1 a1 a1 S 5 0 Source: The Conference Board All time high is 144.70 (1131100); All time low is 25.30 (2128109) Advance Retail Sales showed continued strength jumping 0.6% in August as July data was also revised up to 0.6% month -over -month. The increase elevated retail sales to 5.0% on an annual basis after jumping 4.1% year -over -year in July. Back -to -school shopping was a likely catalyst as online shopping, clothing, and sporting goods saw some of the largest increases. Control group sales, which feed into GDP, also jumped 0.74% in August from the prior month. The Conference Board's Consumer Confidence Index fell to 94.2 in September from a revised 97.8 in August, marking the lowest level since April 2025. Measures of current conditions and future expectations fell, signaling weaker sentiment toward employment and income. Consumers have remained resilient, but rising debt burdens, higher delinquency rates, lingering inflation worries, and emerging signs of labor market cooling could weigh on future spending. II Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D LEADING INDICATORS OF ECONOMIC ACTIVITY 15.0% 10.0% 5.0 % -15.0% -20.0% -25.0% Leading Economic Indicators (LEI) 94 a°�, S 94 a°d, 9 10 10 a°9 a°9 ,s' � 10 a°0 1 10 a°0 S 10 a°0 9 10 g1 .>' 10 6,175 1 � 10 a°1 1 10 a°� S Source: The Conference Board 1.00 0.75 0.50 v 0.25 v a 0.00 s c :0 -0.25 rn -0.50 -0.75 -1.00 CHANDLER ASSET ASSET MANAGEMENT Chicago Fed National Activity Index (CFNAI) 1�1 1�1 le, 10 10 1�1 10 1 �1 1 �1 10 110 a°:S a?� a°:9 a° 9 a° O g 0 `10 � 1 a°:1 11>1 a°:� S 9 ,�' � 1 S 9 .3' � 1 S Source: Federal Reserve Bank of Chicago The Conference Board's Leading Economic Index (LEI) fell by 0.5% in August, following a 0.1% increase in July. The LEI decreased by 3.6% year -over -year. The Conference Board is expecting economic growth to slow in the second half of 2025 due to consumer pessimism, soft manufacturing new orders, and negative impacts from tariffs. The Chicago Fed National Activity Index (CFNAI) came in at -0.12% in August after a downwardly revised -0.28 in July, indicating that economic momentum remained below its historical trend for the fifth consecutive month. The three-month moving average shows a similar trend at -0.18 in August from -0.20 in the prior month signaling ongoing below -trend growth in national economic activity. F: Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D HOUSING Q11CHANDLER ASSET MANAGEMENT 2,400 2,200 2,000 1,800 1,600 to 1,400 Annualized Housing Starts ■ Multi Family Housing Starts ■ Single Family Housing Starts 800 600 400 III 200 Illllll�i��ll�lllllll a '4 SOS 1�1 '�''O) 1G N 94 10 g11 g1S .10 �1S 10 g1� 94 g I9 14 g�1 10 g�3 q� ��S Source: US Department of Commerce 24.0% 20.0% 16.0% 12.0% 8.0% 4.0 % 0.0 % 61 o -4.0% } -8.0% -12.0% -16.0% -20.0% S&P/Case-Shiller 20 City Composite Home Price Index ✓4/, ✓0/ OS 0) ✓0/, 00 ✓0/ . 7 ✓0/ 4:., ✓0/, 1s 1/0/, > ✓0/, s ✓4/, ✓0/, 1/0/, Source: S&P Housing starts dropped 8.5% in August to 1.307 million units, marking a pullback amid elevated inventory levels and a softening labor market. Single-family starts fell 7.0% in August to 890,000 units, hitting their lowest level since July 2024. The S&P Cotality Case Shiller 20- City Home Price Index recorded a 0.07% month -over -month decline in July, marking the fifth consecutive month of losses, while still posting a modest year -over -year gain of 1.8%. Persistently high asking prices and elevated mortgage rates have continued to challenge affordability, contributing to the recent cooling across the housing market. However, the Freddie Mac 30-year fixed mortgage rate continued recent declines to 6.3% as of September. 9 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D SURVEY BASED MEASURES 70 65 60 55 50 45 40 CHANDLER ASSET MANAGEMENT Institute of Supply Management (ISM) Surveys ISM Manufacturing ISM Services EXPANDING • ' CONTRACTING bc� d�� �� �� c� d�� �� �� c� a~� �� O j 7 I 1 .�' �' �O Source: Institute for Supply Management Manufacturing activity contracted at a slightly slower rate as the Institute for Supply Management (ISM) Manufacturing Index edged up to 49.1 in September, from 48.7 in August yet remaining below the expansion threshold, signaling the seventh consecutive month of contraction in the manufacturing sector. Production growth factored into the gain, although drops in new orders and inventories offset the increase. The ISM Services Index fell to 50.0 in September from 52.0 in August, which is the breakeven point between expansion and contraction. The 2.0-point decline generally indicated moderate to weak growth, with only isolated reports of supplier delivery delays. Employment remained in contraction territory, reflecting delayed hiring plans and ongoing challenges in finding qualified workers. 10 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D GROSS DOMESTIC PRODUCT (GDP) Personal Consumption Expenditures Gross Private Domestic Investment Net Exports and Imports Federal Government Expenditures State and Local (Consumption and Gross Investment) Total Source: US Department of Commerce CHANDLER ASSET ASSET MANAGEMENT Gross Domestic Product (GDP) ' 40.0% 30.0% 2.7% 2.6% 0.4% 1.7% 20.0% 0.2% -1.3% 3.8% -2.7% 10.0% 0.0% - - -0.4% -0.1% -4.7% 4.8% -10.0 0.5% 0.3% -0.4% -0.4% -20 0% I -GDP QOQ %Change 0.4% 0.3% 0.2% 0.3% -30.0a o GDP YOY% Change -40.0% 3.4% 1.9% -0.6% 3.8% ✓�, OP ✓�, Oo ✓�, On ✓�, 0, ✓� O� ✓�, �� c� c� 7�� 7�,1 c,1 7� O O j j .�' 4 st S Source: US Department of Commerce In a sharp rebound from the first quarter, real GDP increased at an annualized rate of 3.8% in the second quarter of 2025 according to the final data revision from the Bureau of Economic Analysis. The increase in real GDP in the second quarter was driven by the drop in imports following the significant rise in the first quarter in anticipation of higher tariffs and an increase in consumer spending. The consensus projection calls for 1.7% growth for the third quarter and 1.8% for the full year 2025. 11 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D FEDERAL RESERVE C31CHANDLER ASSET MANAGEMENT 10,000,000 9,000,000 8,000,000 7,000,000 0 6,000,000 = 5,000,000 = 4,000,000 3,000,000 2,000,000 1,000,000 0 Federal Reserve Balance Sheet Assets SP S� S� S� SP SP S�, SP S� SP SP aO �O aO ,aZ a1 01 �� a1 ,�� a" a� S 5 9 1 .�' S > 9 1 .�' S Source: Federal Reserve 6.00% 5.00% 4.00% e :2 3.00% v r 2.00% 1.00% 0.00% Effective Federal Funds Rate S% S� S� S� S� S, S, S, S, S, S, 'O pO pO p1 p1 b1 �1 p 7 b� �"�� S � 9 .l ,�' S � 9 1 �' S Source: Bloomberg The Federal Reserve lowered its benchmark interest rate by a quarter point to a range of 4.00% to 4.25% at its September meeting, as officials responded to mounting signs of labor market weakness. Chair Jerome Powell said the move was aimed at cushioning the slowdown while keeping policy restrictive enough to fight lingering inflation. The Fed kept its balance -sheet runoff unchanged, maintaining a $5 billion monthly cap on Treasuries and $35 billion on agency and mortgage -backed securities. Since launching its Quantitative Tightening campaign in June 2022, the Fed has reduced its securities holdings by about $2.35 trillion, bringing the total down to roughly $6.6 trillion. 12 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D BOND YIELDS US Treasury Note Yields 6.0 % 5.0 % 4.0 % 2.0 % 1.0 % 0.0% • SPp �dr SPp �d/. SPp Source: Bloomberg S 4�1S S �°,b, 6.0% 5.0 % 4.0% 2.0 % 1.0 % 0.0 % CHANDLER ASSET ASSET MANAGEMENT US Treasury Yield Curve Sep-25 Jun-25 • Sep-24 1_3 Syr ,y~ 10 1-90 o �o Source: Bloomberg At the end of September, the 2-year Treasury yield was 5 basis points lower, and the 10-Year Treasury yield was 40 basis points higher, year -over -year. The spread between the 2-year and 10-year Treasury yield points on the curve decreased to +54 basis points at September month -end versus +61 basis points at August month -end. The prior 2-year/10-year yield curve inversion, which spanned from July 2022 to August 2024, was historically long. The average historical spread (since 2005) is about +99 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was +21 basis points in September versus +8 basis points in August. 13 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D it%CHANDLER ASSET MANAGEMENT 14 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D OBJECTIVES Investment Objectives The investment objectives of the City of Tustin are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide adequate liquidity to meet all requirements which might be reasonably anticipated; and third, to earn a commensurate rate of return. Chandler Asset Management Performance Objective The performance objective for the accounts is to achieve a rate of return over a market cycle that equals or exceeds the return on a market index of similar duration and sector allocation. Strategy In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent with the investment policy and California Government Code. CHANDLER ASSET ASSET MANAGEMENT 15 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D STATEMENT OF COMPLIANCE C/„CHANDLER ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 Rules Name Limit Actual Compliance Notes Status AGENCY MORTGAGE SECURITIES (CMOS) Max % (MV) 20.0 5.1 Compliant Max % Issuer (MV) 10.0 5.1 Compliant Max Maturity (Years) 5.0 4.9 Compliant Min Rating (AA- by 1) 0.0 0.0 Compliant BANKERS' ACCEPTANCES Max % (MV) 30.0 0.0 Compliant Max % Issuer (MV) 5.0 0.0 Compliant Max Maturity (Days) 180 0.0 Compliant Min Rating (A- by 1) 0.0 0.0 Compliant CERTIFICATE OF DEPOSIT PLACEMENT SERVICE (CDARS) Max % (MV) 30.0 0.0 Compliant COLLATERALIZED BANK DEPOSITS Max % (MV) 100.0 0.0 Compliant Max % Issuer (MV) 30.0 0.0 Compliant Max Maturity (Years) 5.0 0.0 Compliant Min Rating (A- by 1) 0.0 0.0 Compliant COLLATERALIZED TIME DEPOSITS (NON- NEGOTIABLE CD/TD) Max Maturity (Years) 5.0 0.0 Compliant Min Rating (A- by 1) 0.0 0.0 Compliant COMMERCIAL PAPER Max % (MV) 30.0 0.0 Compliant Max % Issuer (Corporate & Commercial Paper; MV) 10.0 0.5 Compliant Max % Issuer (MV) 5.0 0.0 Compliant Max Maturity (Days) 270 0.0 Compliant Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant CORPORATE MEDIUM TERM NOTES Max % (MV) 30.0 19.4 Compliant 16 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D STATEMENT OF COMPLIANCE City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 Rules Name Limit Actual .. Status Max % Issuer (Corporate & Commercial Paper; MV) 10.0 0.5 Compliant CHANDLER ASSET ASSET MANAGEMENT Max % Issuer (MV) 5.0 0.5 Compliant Max Maturity (Years) 5 4 Compliant Min Rating (A- by 1) 0.0 0.0 Compliant FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE CD/TD) Max Maturity (Years) 5 0.0 Compliant FEDERAL AGENCIES Max % (MV) 100.0 7.1 Compliant Max % Issuer (MV) 50.0 3.9 Compliant Max Maturity (Years) 5 3 Compliant JPA INVESTMENT POOLS Max % (MV) 100.0 35.2 Compliant Max % Issuer (MV) 50.0 35.2 Compliant Max Maturity (Years) 5.0 0.0 Compliant LOCAL AGENCY INVESTMENT FUND (LAIF) Max Concentration (MV) 75.0 12.8 Compliant MONEY MARKET MUTUAL FUNDS Max % (MV) 20.0 0.3 Compliant Max % Issuer (MV) 10.0 0.3 Compliant Min Rating (AAA by 2) 0.0 0.0 Compliant MUNICIPAL SECURITIES (CA, LOCAL AGENCY) Max % (MV) 30.0 0.0 Compliant Max % Issuer (MV) 5.0 0.0 Compliant Max Maturity (Years) 5 0.0 Compliant Min Rating (A- by 1) 0.0 0.0 Compliant MUNICIPAL SECURITIES (CA, OTHER STATES) Max % (MV) 30.0 0.0 Compliant Max % Issuer (MV) 5.0 0.0 Compliant Max Maturity (Years) 5 0.0 Compliant 17 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D STATEMENT OF COMPLIANCE C/„CHANDLER ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 ComplianceRules Name Min Rating (A- by 1) Limit 0.0 Actual 0.0 Notes Status Compliant NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD) Max % (MV) 30.0 0.1 Compliant Max % Issuer (MV) 5.0 0.1 Compliant Max Maturity (Years) 5 0.0 Compliant Min Rating (A-1 by 1 or A- by 1 if> FDIC Limit) 0.0 0.0 Compliant REPURCHASE AGREEMENTS Max % (MV) 30.0 0.0 Compliant Max % Issuer (MV) 5.0 0.0 Compliant Max Maturity (Years) 1.0 0.0 Compliant U.S. TREASURIES Max %(MV) 100.0 22.9 Compliant Max % Issuer (MV) 100.0 22.9 Compliant Max Maturity (Years) 5 4 Compliant The City of Tustin maintains odequate liquidity to cover at least six months of expected disbursements. 18 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D PORTFOLIO SUMMARY City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 CHANDLER ASSET ASSET MANAGEMENT Portfolio Characteristics Account Summary Top Issuers Average Modified Duration 1.39 End Values as End Values asCalifornia Asset Mgmt Program 35.16% of 07/31/2025 of 09/30/2025 United States 22.93% Average Coupon 3.69% Market Value 197,685,444.81 194,070,618.15 LAIF 6.61% Average Purchase YTM 3.94% Accrued Interest 862,997.57 790,293.04 FHLMC 5.07% Total Market Value 198,548,442.38 194,860,911.20 Farm Credit System 3.86% Average Market YTM ° 3.90% Income Earned 1,524,731.29 1,217,277.02 Federal Home Loan Banks 3.29% Average Credit Quality* AA+ Cont/WD (22,607,930.73) (5,716,019.48) Citizens Business Bank 3.25% Average Final Maturity 1.55 Par 198,448,186.27 194,120,044.15 Toyota Motor Corporation 0.53% Book Value 197,533,919.22 193,184,818.62 Average Life 1.42 Cost Value 197,283,184.04 192,868,130.88 Sector Allocation LGIP 35.16% US Treasury 22.93% Corporate 19.37% Agency 7.14% LAIF 6.61% Agency CMBS 5.07% Cash 3.32% Money Mkt Fd 0.27% Performance Review Total Rate of Return" City of Tustin Cons Agg Benchmark Return Maturity Distribution 75% 50.7% 50% 25% 0% O 1.20% 4.45% 5.22% 4.72% 1.14% 3.77% 5.58% 4.42% Credit Quality* AAA 42.63% NAA35.59% A-1 2.31% A 9.61% 0 NA 9.86% IS Since Inception (12/01120) 1.17% Secondary Benchmark Return 1.12% 3.88% 5.29% 4.35% -- 1.63% Realized Rate of Return" 3M 1YR 2YRS 3YRS 5YRS 10YRS Since Inception i i City of Tustin Cons Agg 1.00% 3.98% 4.04% 3.75% 2.67% **Periods over 1 year are annualized. Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index Secondary Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index Total rate of return: A measure of a portfolio's performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized 4!)unrealized gains and losses in the portfolio. Realized Rate of Return: A measure of a portfolio's return overtime. It is the internal rate which equates the beginning book value of the portfolio with the ending book value; it includes interest earnings, realized gains and losses in the portfolio Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D MATURITY DISTRIBUTION City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 (D zi 60,000,000 co (D L 40,000,000 20,000,000 C 93,513,314.49 0 - .25 .25 - .5 .5 - 1 1-2 2-3 3-4 CHANDLER ASSET MANAGEMENT 17-,373;260.59 Pill Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D PORTFOLIO SUMMARY City of Tustin I Account #10783 1 As of September 30, 2025 CHANDLER ASSET ASSET MANAGEMENT Portfolio Characteristics Account Summary Top Issuers Average Modified Duration 2.53 End Values as End ValuesUnited States 41.76% of 07/31/2025 of 09/30/2025 FHLMC 9.23% Average Coupon 3.48% Market Value 105,075,788.29 106,554,359.58 Farm Credit System 7.02% Average Purchase YTM 3.94% Accrued Interest 862,997.57 790,293.04 Federal Home Loan Banks 5.98% Total Market Value 105,938,785.86 107,344,652.63 Toyota Motor Corporation 0.97% Average Market YTM o 3.86/o Income Earned 686 122.57 ' 684 619.10 Johnson &Johnson 0.97% Average Credit Quality* AA Cont/WD 8,851,152.09 0.00 Cisco Systems, Inc. 0.96% Average Final Maturity 2.81 Par 105,838,529.75 106,603,785.58 The Home Depot, Inc. 0.96% Book Value 104,924,262.71 105,668,560.06 Average Life 2.59 Cost Value 104,673,527.53 105,351,872.32 Sector Allocation Maturity Distribution Credit Quality* 75% US Treasury 41.76% Corporate 35.28% 50.7% 50% Agency 13.01% Agency CMBS hL 9.23% 24.5 Money Mkt I'd 0.49% 25% 10.3% 8.9.7% Neg CD 0.22% 5- 0% O 1 J, AAA 13.48% AA 64.83% A-14.20% Cash 0.00% S S 1 S A 17.50% Performance Total Rate of Return** 3M 1YR 2YRS 3YRS SYRS 10YRS Since Inception (12/01/20) 00' Benchmark Return 1.14% 3.77% 5.58% 4.42% 1.17% Secondary Benchmark Return 1.12% 3.88% 5.29% 4.35% 1.63% Realized Rate of Return" 3M 1YR 2YRS 3YRS 5YRS 10YRS Since Inception City of Tustin 0.97% 3.56% 3.17% 2.87% 2.50% **Periods over 1 year are annualized. Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index Secondary Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index Total rate of return: A measure of a portfolio's performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realiand unrealized gains and losses in the portfolio. Realized Rate of Return: A measure of a portfolio's return over time. It is the internal rate which equates the beginning book value of the portfolio with the ending book value; it rn&des interest earnings, realized gains and losses in the portfolio Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D it%CHANDLER Q11 CHANDLER ASSET MANAGEMENT ASSET MANAGEMENT PaOj Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D ISSUERS City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 California Asset Mgmt Program United States C/„CHANDLER ASSET MANAGEMENT Portfolio LGIP 35.16% US Treasury 22.93% LAI F LAI F 6.61 FHLMC Agency CMBS 5.07% Farm Credit System Agency 3.86% Federal Home Loan Banks Agency 3.29% Citizens Business Bank Cash 3.25% Toyota Motor Corporation Corporate 0.53% Johnson & Johnson Corporate 0.53% Cisco Systems, Inc. Corporate 0.53% The Home Depot, Inc. Corporate 0.53% Blackrock, Inc. Corporate 0.53% State Street Corporation Corporate 0.53% Bank of America Corporation Corporate 0.52% PepsiCo, Inc. Corporate 0.52% Abbvie Inc. Corporate 0.52% BNY Mellon Corp Corporate 0.52% Deere & Company Corporate 0.52% Northwestern Mutual Global Funding Corporate 0.52% Met Tower Global Funding Corporate 0.52% National Rural Utilities Cooperative Corporate 0.52% PACCAR Inc Corporate 0.52% Florida Power & Light Corporate 0.52% CME Group Inc. Corporate 0.52% New York Life Insurance Company Corporate 0.52% Wells Fargo & Company Corporate 0.52% U.S. Bancorp Corporate 0.52% Eli Lilly and Company Corporate 0.52% American Express Company Corporate 0.52% Northern Trust Corporation Corporate 0.52% 23 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D ISSUERS City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 Merck & Co., Inc. Guardian Life Global Funding Morgan Stanley C/„CHANDLER ASSET MANAGEMENT PortfolioInvestment Type % Corporate 0.52% Corporate 0.52% Corporate 0.51% Chubb Limited Corporate 0.51% Caterpillar Inc. Corporate 0.51% The Charles Schwab Corporation Corporate 0.51% Amazon.com, Inc. Corporate 0.51% UnitedHealth Group Incorporated Corporate 0.51% The PNC Financial Services Group, In Corporate 0.50% Royal Bank of Canada Corporate 0.50% Mastercard Incorporated Corporate 0.50% Honeywell International Inc. Corporate 0.49% Apple Inc. Corporate 0.48% Walmart Inc. Corporate 0.45% Public Service Enterprise Group Inco Corporate 0.31% First American Govt Oblig fund Money Mkt I'd 0.27% The Goldman Sachs Group, Inc. Neg CD 0.12% Cash Cash 0.07% TOTAL 100.00% 24 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 CHANDLER ASSET ASSET MANAGEMENT AGENCY FEDERAL HOME LOAN BANKS 11/30/2023 1,503,345.00 101.01 1,515,162.14 0.78% Aa1/AA+ 1.13 3130AXU63 4.62511/17/2026 1,500,000.00 4.54% 1,501,273.70 3.70% 25,822.92 13,888.43 AA+ 1.07 FEDERAL FARM CREDIT BANKS 12/08/2023 1,001,820.00 101.69 1,016,921.79 0.52% Aa1/AA+ 2.01 3133EPH81 FUNDING CORP 4.5 10/04/2027 1,000,000.00 4.45% 1,000,957.69 3.62% 22,125.00 15,964.10 AA+ 1.87 FEDERAL HOME LOAN BANKS 07/26/2023 1,255,762.50 101.93 1,274,103.34 0.66% Aa1/AA+ 2.69 3130AWMN7 4.375 06/09/2028 1,250,000.00 4.27% 1,253,188.04 3.61% 17,013.89 20,915.30 AA+ 2.49 FEDERAL FARM CREDIT BANKS 08/29/2023 1,507,785.00 102.18 1,532,678.09 0.79% Aa1/AA+ 2.91 3133EPUN3 FUNDING CORP 4.5 08/28/2028 1,500,000.00 4.37% 1,504,532.71 3.70% 6,187.50 28,145.37 AA+ 2.70 FEDERAL HOME LOAN BANKS 4.75 12/08/2023 1,222,020.00 103.24 11238,874.84 0.64% Aa1/AA+ 3.19 3130AXQK7 12/08/2028 1,200,000.00 4.33% 11214,052.24 3.66% 17,891.67 24,822.60 AA+ 2.90 FEDERAL FARM CREDIT BANKS 01/29/2024 1,488,945.00 100.79 1,511,780.82 0.78% Aa1/AA+ 3.30 3133EPW84 FUNDING CORP 3.875 01/18/2029 1,500,000.00 4.04% 1,492,656.41 3.62% 11,786.46 19,124.41 AA+ 3.05 FEDERAL HOME LOAN BANKS 4.5 04/25/2024 1,384,040.00 102.40 1,433,558.91 0.74% Aa1/AA+ 3.44 3130AVBD3 03/09/2029 1,400,000.00 4.76% 11388,734.65 3.75% 3,850.00 44,824.26 AA+ 3.16 FEDERAL FARM CREDIT BANKS 04/25/2024 1,376,046.00 102.65 11437,165.31 0.74% Aa1/AA+ 3.53 3133ERAK7 FUNDING CORP 4.375 04/10/2029 1,400,000.00 4.77% 1,382,929.79 3.57% 29,093.75 54,235.52 AA+ 3.19 FEDERAL FARM CREDIT BANKS 09/17/2024 2,002,440.00 99.26 1,985,192.54 1.02% Aa1/AA+ 3.94 3133ERSP7 FUNDING CORP 3.5 09/10/2029 2,000,000.00 3.47% 2,001,932.67 3.70% 4,083.33 (16,740.13) AA+ 3.64 FEDERAL HOME LOAN BANKS 09/30/2024 921,906.00 101.51 913,553.85 0.47% Aa1/AA+ 3.96 3130ATHX8 4.125 09/14/2029 900,000.00 3.58% 917,486.05 3.71% 1,753.13 (3,932.20) AA+ 3.62 13,664,109.51 101.54 13,858,991.61 7.14% 3.03 Total Agency 13,650,000.00 4.25% 13,657,743.95 3.67% 139,607.64 201,247.66 2.79 AGENCY CMBS 3137F1G44 FHMS K-065 A2 3.243 04/25/2027 750,000.00 06/08/2023 719,560.55 98.94 742,051.35 0.38% Aa1/AA+ 1.57 4.39% 738,004.05 3.86% 2,026.88 4,047.30 AAA 1.42 3137FEZU7 FHMS K-076 A2 3.9 04/25/2028 750,000.00 10/30/2023 708,310.55 99.99 749,896.43 0.39% Aa1/AA+ 2.57 5.32% 726,388.05 3.83% 2,437.50 23,508.38 AAA 2.32 3137FJEH8 FHMS K-081 A2 3.9 08/25/2028 700,000.00 05/29/2025 692,125.00 99.91 699,366.71 0.36% Aa1/AA+ 2.90 4.23% 692,967.54 3.87% 2,275.00 6,399.17 AAA 2.67 3137FJKE8 FHMS K-082 A2 3.92 09/25/2028 750,000.00 10/30/2023 705,556.64 99.96 749,735.18 0.39% Aa1/AA+ 2.99 5.31% 723,157.72 3.87% 2,450.00 26,577.45 AAA 2.70 25 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 CHANDLER ASSET ASSET MANAGEMENT 3137H4BY5 FHMS K-746A2 2.03109/25/2028 1,500,000.00 05/15/2025 1,395,527.34 94.72 1,420,828.80 0.73% Aa1/AA+ 2.99 4.30% 1,407,193.45 3.92% 2,538.75 13,635.35 AAA 2.80 3137FJXV6 FHMS K-083 A2 4.05 09/25/2028 300,000.00 05/29/2025 297,609.38 100.32 300,967.53 0.16% Aa1/AA+ 2.99 4.26% 297,858.49 3.87% 1,012.50 3,109.04 AAA 2.75 3137FKZZ2 FHMS K-088 A2 3.69 01/25/2029 1,000,000.00 07/22/2024 963,789.06 99.29 992,920.10 0.51% Aaa/AA+ 3.32 4.58% 973,461.69 3.87% 3,075.00 19,458.41 AA+ 3.00 3137H5YC5 FHMS K-748 A2 2.26 01/25/2029 643,000.00 06/17/2025 601,858.05 94.85 609,883.25 0.31% Aa1/AA+ 3.32 4.22% 605,052.30 3.94% 1,210.98 4,830.95 AAA 3.06 3137FLN91 FHMS K-091 A2 3.505 03/25/2029 1,000,000.00 03/05/2025 970,234.38 98.62 986,174.50 0.51% Aa1/AAA 3.48 4.31% 974,436.83 3.90% 2,920.83 11,737.67 AA+ 3.12 3137FLYV0 3137H9D71 3137FX3Q9 Total Agency CMBS FHMS K-092 A2 3.298 04/25/2029 1,000,000.00 09/17/2024 981,484.38 97.89 978,913.00 0.50% Aa1/AA+ 3.57 3.72% 985,693.49 3.91% 2,748.33 (6,780.49) AAA 3.24 FHMS K-750 A2 3.0 09/25/2029 750,000.00 06/17/2025 716,601.56 96.63 724,747.20 0.37% Aa1/AA+ 3.99 4.23% 718,783.04 3.98% 1,875.00 5,964.16 AAA 3.33 FHMS K-117 A2 1.406 08/25/2030 1,000,000.00 09/11/2025 891,757.81 88.47 884,673.20 0.46% Aa1/AA+ 4.90 3.87% 892,669.96 4.05% 1,171.67 (7,996.76) AAA 4.57 9,644,414.70 97.13 9,840,157.24 5.07% 3.25 10,143,000.00 4.38% 9,735,666.61 3.91% 25,742.44 104,490.63 2.95 CASH CBGMMF$04 Citizens Business Bank CBGMMF$03 Citizens Business Bank CCYUSD Receivable 05/31/2025 463,925.77 1.00 463,925.77 463,925.77 0.00% 463,925.77 0.00% 0.00 09/30/2025 5,842,324.53 1.00 5,842,324.53 5,842,324.53 0.00% 5,842,324.53 0.00% 0.00 0.24% NA/NA 0.00 0.00 NA 0.00 3.01% NA/NA 0.00 0.00 NA 0.00 2,842.44 2,842.44 1.00 2,842.44 0.00% Aaa/AAA 0.00 2,842.44 0.00% 0.00 0.00 AAA 0.00 136,992.81 1.00 136,992.81 0.07% Aaa/AAA 0.00 CCYUSD Receivable 136,992.81 136,992.81 0.00% 0.00 0.00 AAA 0.00 2.60 1.00 2.60 0.00% Aaa/AAA 0.00 CCYUSD Receivable 2.60 2.60 0.00% 0.00 0.00 AAA 0.00 6,446,088.15 1.00 6,446,088.15 3.32% 0.00 Total Cash 6,446,088.15 0.00% 6,446,088.15 0.00% 0.00 0.00 0.00 26 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 CORPORATE 14913R2H9 00440EAV9 023135BX3 808513BR5 91324PEC2 CATERPILLAR FINANCIAL SERVICES 1,000,000.00 04/21/2021 991,780.00 99.57 CORP 0.8 11/13/2025 0.98% 999,787.71 4.50% CHUBB INA HOLDINGS LLC 3.35 05/03/2026 AMAZON.COM INC 1.0 05/12/2026 CHARLES SCHWAB CORP 1.15 05/13/2026 UNITEDHEALTH GROUP INC 1.15 05/15/2026 1,000,000.00 07/23/2021 1,102,780.00 99.58 1.13% 1,007,961.10 4.07% 1,000,000.00 05/12/2021 995,200.00 98.24 1.10% 999,413.16 3.93% 07/23/2021 1,007,990.00 98.26 1,000,000.00 0.98% 1,000,907.41 4.04% 07/28/2021 1,007,110.00 98.20 1,000,000.00 1.00% 11000,816.23 4.11% CHANDLER ASSET ASSET MANAGEMENT 995,692.97 0.51% A2/A 0.12 3,066.67 (4,094.74) A+ 0.12 995,810.58 0.51% A2/A 0.59 13,772.22 (12,150.52) A 0.57 982,384.55 0.51% Al/AA 0.61 3,861.11 (17,028.61) AA- 0.60 982,581.39 0.51% A2/A- 0.62 4,408.33 (18,326.02) A 0.60 982,005.22 0.51% A2/A+ 0.62 4,344.44 (18,811.01) A 0.61 ROYAL BANK OF CANADA 1.15 07/28/2021 999,090.00 97.82 978,150.40 0.50% Al/A 0.79 78016EZT7 07/14/2026 1,000,000.00 1.17% 999,856.21 4.00% 2,459.72 (21,705.81) AA- 0.77 931142ERO WALMART INC 1.05 09/17/2026 900,000.00 09/22/2021 902,277.00 97.46 877,155.82 0.45% Aa2/AA 0.96 1.00% 900,409.95 3.76% 367.50 (23,254.13) AA 0.94 MORGAN STANLEY 3.625 01/14/2025 979,620.00 99.65 996,470.32 0.51% Al/A- 1.31 61746BEF9 01/20/2027 1,000,000.00 4.70% 986,801.52 3.90% 7,149.31 9,668.80 A+ 1.25 NORTHERN TRUST CORP 4.0 01/30/2023 986,540.00 100.16 1,001,557.92 0.52% A2/A+ 1.61 665859AW4 05/10/2027 1,000,000.00 4.35% 994,940.63 3.90% 15,666.67 6,617.29 A+ 1.44 JOHN DEERE CAPITAL CORP 4.65 01/10/2025 997,270.00 101.63 1,016,341.60 0.52% Al/A 2.27 24422EXZ7 01/07/2028 1,000,000.00 4.75% 997,924.30 3.89% 10,850.00 18,417.30 A+ 2.12 MET TOWER GLOBAL FUNDING 01/10/2025 996,910.00 101.50 1,015,039.44 0.52% Aa3/AA- 2.29 58989V2K9 4.8 01/14/2028 1,000,000.00 4.91% 997,643.70 4.10% 10,266.67 17,395.74 AA- 2.13 WELLS FARGO & CO 4.9 01/30/2025 1,000,770.00 100.92 1,009,195.31 0.52% Al/BBB+ 2.32 95000U3R2 01/24/2028 1,000,000.00 4.86% 1,000,511.20 4.49% 9,119.44 8,684.11 A+ 1.25 NATIONAL RURAL UTILITIES 02/07/2025 999,330.00 101.47 1,014,743.74 0.52% A2/NA 2.36 63743HFW7 COOPERATIVE FINANCE CORP 4.75 1,000,000.00 4.77% 999,472.96 4.08% 7,125.00 15,270.78 A 2.12 02/07/2028 PACCAR FINANCIAL CORP 4.55 05/02/2025 1,009,000.00 101.39 1,013,897.05 0.52% Al/A+ 2.42 69371RT63 03/03/2028 1,000,000.00 4.21% 1,007,701.84 3.94% 3,538.89 6,195.21 NA 2.27 00287YDY2 ABBVI E INC 4.65 03/15/2028 1,000,000.00 03/05/2025 1,006,680.00 101.65 1,016,472.84 0.52% A3/A- 2.46 4.40% 1,005,382.49 3.94% 2,066.67 11,090.35 NA 2.23 NEW YORK LIFE GLOBAL FUNDING 04/24/2025 1,002,060.00 101.02 1,010,168.90 0.52% Aa1/AA+ 2.57 6495366W7 4.4 04/25/2028 1,000,000.00 4.33% 1,001,761.15 3.98% 19,066.67 8,407.75 AAA 2.36 27 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 74456QBU9 PUBLICSERVICE ELECTRICAND GAS CO 3.7 05/01/2028 341081GN1 FLORIDA POWER & LIGHT CO 4.4 05/15/2028 90331HPS6 US BANK NA 4.73 05/15/2028 CHANDLER ASSET ASSET MANAGEMENT 600,000.00 06/29/2023 570,144.00 99.43 596,588.32 0.31% Al/A 2.59 4.87% 584,066.66 3.93% 9,250.00 12,521.66 NA 2.40 06/07/2023 987,550.00 101.13 1,011,270.71 0.52% Aa2/A+ 2.62 1,000,000.00 4.69% 993,388.10 3.94% 16,622.22 17,882.61 AA- 2.27 05/13/2025 1,000,600.00 100.89 1,008,856.10 0.52% A2/A+ 2.62 1,000,000.00 4.86% 1,000,521.76 4.49% 17,868.89 8,334.34 A+ 1.52 TOYOTA MOTOR CREDIT CORP 09/26/2023 996,180.00 103.47 1,034,712.69 0.53% Al/A+ 2.95 89236TL69 5.25 09/11/2028 1,000,000.00 5.34% 997,729.11 3.99% 2,916.67 36,983.59 A+ 2.71 BANK OF AMERICA CORP 4.979 02/14/2025 1,003,780.00 101.85 1,018,484.12 0.52% Al/A- 3.32 06051GMK2 01/24/2029 1,000,000.00 4.84% 1,002,985.14 4.37% 9,266.47 15,498.98 AA- 2.15 CISCO SYSTEMS INC 4.85 09/27/2024 1,037,530.00 102.61 1,026,132.61 0.53% Al/AA- 3.41 17275RBR2 02/26/2029 1,000,000.00 3.90% 1,028,830.84 4.02% 4,715.28 (2,698.23) NA 3.03 09290DAA9 BLACKROCK INC 4.7 03/14/2029 1,000,000.00 07/22/2024 1,002,010.00 102.29 1,022,886.79 0.53% Aa3/AA- 3.45 4.65% 1,001,485.49 3.98% 2,219.44 21,401.30 NA 3.09 BANK OF NEW YORK MELLON 04/24/2025 1,008,810.00 101.64 1,016,425.94 0.52% Aa2/AA- 3.55 06405LAH4 4.729 04/20/2029 1,000,000.00 4.41% 1,007,526.05 4.37% 20,886.42 8,899.89 AA 2.34 PNC FINANCIAL SERVICES GROUP 07/16/2025 969,260.00 97.91 979,090.31 0.50% A3/A- 3.56 693475AW5 INC 3.45 04/23/2029 1,000,000.00 4.34% 970,957.85 4.09% 15,141.67 8,132.46 A 3.26 MASTERCARD INC 2.95 04/17/2025 950,210.00 96.63 966,298.43 0.50% Aa3/A+ 3.67 57636QAM6 06/01/2029 1,000,000.00 4.28% 955,613.31 3.95% 9,833.33 10,685.12 NA 3.40 HOME DEPOT INC4.75 04/17/2025 1,013,630.00 102.41 1,024,063.81 0.53% A2/A 3.73 437076DC3 06/25/2029 1,000,000.00 4.38% 1,012,143.92 4.05% 12,666.67 11,919.89 A 3.29 713448FX1 PEPSICO INC 4.5 07/17/2029 1,000,000.00 07/22/2024 997,560.00 101.78 1,017,772.86 0.52% Al/A+ 3.79 4.56% 998,143.19 3.99% 9,250.00 19,629.67 NA 3.36 AMERICAN EXPRESS CO 4.351 08/11/2025 1,001,850.00 100.59 1,005,899.91 0.52% A2/A- 3.80 025816EJ4 07/20/2029 1,000,000.00 4.28% 1,001,763.79 4.33% 7,976.83 4,136.12 A 2.60 532457CQ9 ELI LILLY AND CO 4.2 08/14/2029 1,000,000.00 08/15/2024 1,000,130.00 100.71 1,007,078.81 0.52% Aa3/A+ 3.87 4.20% 1,000,100.20 4.00% 5,483.33 6,978.61 NA 3.45 HONEYWELL INTERNATIONAL INC 08/15/2024 930,020.00 95.26 952,553.22 0.49% A2/A 3.87 438516BU9 2.7 08/15/2029 1,000,000.00 4.27% 945,779.88 4.04% 3,450.00 6,773.34 A 3.61 037833DP2 APPLE INC 2.2 09/11/2029 1,000,000.00 10/30/2024 908,490.00 93.82 938,183.47 0.48% Aaa/AA+ 3.95 4.31% 925,751.18 3.91% 1,222.22 12,432.29 NA 3.72 GUARDIAN LIFE GLOBAL FUNDING 03/05/2025 985,840.00 99.95 999,511.96 0.52% Aal/AA+ 3.99 40139LBJ1 4.179 09/26/2029 1,000,000.00 4.53% 987,617.44 4.19% 580.42 11,894.52 NA 3.63 28 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 857477CW 1 CHANDLER ASSET ASSET MANAGEMENT STATE STREET CORP 4.729 000.00 03/05/2025 1,003,660.00 102.18 1,021,774.25 0.53% Aa3/A 4.41 02/28/2030 1,000,4.62% 1,003,232.42 4.18% 4,334.92 18,541.83 AA- 3.87 JOHNSON & JOHNSON 4.7 04/17/2025 1,021,100.00 102.99 1,029,897.55 0.53% Aaa/AAA 4.42 000.00 478160DJ0 03/01/2030 1,000,4.21% 1,019,131.31 3.95% 3,916.67 10,766.24 NA 3.89 12572QAL9 CME GROUP INC4.4 03/15/2030 1,000,000.00 07/16/2025 1,000,190.00 101.12 1,011,195.48 0.52% Aa3/AA- 4.45 4.39% 1,000,181.37 4.12% 1,955.56 11,014.11 AA- 3.94 NORTHWESTERN MUTUAL 07/02/2025 1,008,110.00 101.53 1,015,312.75 0.52% Aa1/AA+ 4.67 66815L2W8 00 GLOBAL FUNDING 4.606/03/2030 1,000,000.4.41% 1,007,703.60 4.23% 15,077.78 7,609.15 AAA 4.11 58933YBQ7 MERCK & CO INC 4.15 09/15/2030 1,000,000.00 09/11/2025 1,007,940.00 100.10 1,000,993.29 0.52% Aa3/A+ 4.96 3.97% 1,007,869.23 4.13% 2,536.11 (6,875.94) NA 4.43 37,389,001.00 100.29 37,592,651.43 19.37% 2.79 Total Corporate 37,500,000.00 3.88% 37,353,813.39 4.08% 294,300.19 238,838.04 2.41 LAIF 90LAIF$00 Local Agency Investment Fund State Pool Total LAIF LOCAL GOV INVESTMENT POOL 90CAMP$00 CAMP Total Local Gov Investment Pool MONEY MARKET FUND 31846V203 FIRST AMER:GVT OBLG Y 31846V203 FIRST AMER:GVT OBLG Y 12,830,164.16 -- 12,830,164.16 1.00 12,830,164.16 4.20% 12,830,164.16 4.20% 0.00 12,830,164.16 1.00 12,830,164.16 12,830,164.16 4.20% 12,830,164.16 4.20% 0.00 6.61% NA/NA 0.00 0.00 NA 0.00 6.61% 0.00 0.00 0.00 68,242,025.93 -- 4.27% 68,242,025.92 68,242,025.92 1.00 4.27% 68,242,025.93 0.00 35.16% 0.01 NA/AAAm NA 0.00 0.00 68,242,025.92 1.00 68,242,025.93 35.16% 0.00 68,242,025.93 4.27% 68,242,025.92 4.27% 0.00 0.01 0.00 -- 522,943.14 1.00 522,943.14 0.27% Aaa/AAAm 0.00 522,943.14 3.73% 522,943.14 3.73% 0.00 0.00 AAA 0.00 -- 822.77 1.00 822.77 0.00% Aaa/AAAm 0.00 822.77 3.73% 822.77 3.73% 0.00 0.00 AAA 0.00 29 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 CHANDLER ASSET ASSET MANAGEMENT Total Money Market 523,765.91 1.00 523,765.91 0.27% 0.00 Fund 523,765.91 3.73% 523,765.91 3.73% 0.00 0.00 0.00 NEGOTIABLE CD Goldman Sachs Bank USA 1.05 08/17/2021 243,775.00 97.55 238,993.97 0.12% Al/A+ 0.90 38149MYS6 08/25/2026 245,000.00 1.15% 244,779.96 3.85% 260.77 (5,785.98) AA- 0.88 243,775.00 97.55 238,993.97 0.12% 0.90 Total Negotiable CD 245,000.00 1.15% 244,779.96 3.85% 260.77 (5,785.98) 0.88 US TREASURY UNITED STATES TREASURY 05/15/2025 983,937.78 99.99 999,888.30 0.52% P-1/A-1+ 0.01 912797MS3 10/02/2025 1,000,000.00 4.29% 999,884.44 4.09% 0.00 3.86 F1+ 0.00 UNITED STATES TREASURY 05/20/2025 1,713,416.74 99.45 1,740,350.69 0.90% P-1/A-1+ 0.14 912797QR1 11/20/2025 1,750,000.00 4.28% 1,739,949.65 4.05% 0.00 401.04 F1+ 0.14 UNITED STATES TREASURY 06/17/2025 1,713,507.76 99.16 1,735,338.38 0.89% P-1/A-1+ 0.22 912797QZ3 12/18/2025 1,750,000.00 4.29% 11734,274.06 3.95% 0.00 1,064.32 F1+ 0.21 UNITED STATES TREASURY0.375 04/27/2021 1,957,500.00 98.81 1,976,195.32 1.02% Aa1/AA+ 0.34 91282CBH3 01/31/2026 2,000,000.00 0.83% 1,997,018.40 4.01% 1,263.59 (20,823.08) AA+ 0.33 UNITED STATES TREASURY4.0 07/24/2025 998,710.94 100.02 1,000,156.25 0.52% Aa1/AA+ 0.38 91282CGL9 02/15/2026 1,000,000.00 4.23% 999,138.53 3.94% 5,108.70 1,017.72 AA+ 0.37 UNITED STATES TREASURY0.75 04/27/2021 1,989,531.25 98.48 1,969,640.62 1.01% Aa1/AA+ 0.50 91282CBT7 03/31/2026 2,000,000.00 0.86% 1,998,946.14 3.86% 41.21 (29,305.52) AA+ 0.49 UNITED STATES TREASURY 3.75 07/16/2025 1,396,554.69 100.18 1,402,515.63 0.72% Aa1/AA+ 1.75 91282CNL1 06/30/2027 1,400,000.00 3.88% 1,396,921.93 3.64% 13,267.66 5,593.70 AA+ 1.66 UNITED STATES TREASURY4.125 -- 3,719,978.91 100.96 3,776,085.17 1.95% Aa1/AA+ 2.00 91282CFM8 09/30/2027 3,740,000.00 4.27% 3,730,115.34 3.62% 423.83 45,969.83 AA+ 1.90 UNITED STATES TREASURY4.125 02/18/2025 2,487,792.97 101.02 2,525,488.28 1.30% Aa1/AA+ 2.13 91282CLX7 11/15/2027 2,500,000.00 4.31% 2,490,520.59 3.62% 38,952.11 34,967.68 AA+ 1.99 UNITED STATES TREASURY3.5 02/23/2023 1,458,281.25 99.73 1,496,015.63 0.77% Aa1/AA+ 2.34 91282CGH8 01/31/2028 1,500,000.00 4.13% 1,480,231.16 3.62% 8,845.11 15,784.47 AA+ 2.21 UNITED STATES TREASURY2.75 11/08/2024 1,338,039.06 98.02 1,372,273.43 0.71% Aa1/AA+ 2.38 9128283W8 02/15/2028 1,400,000.00 4.22% 1,354,857.03 3.63% 4,917.12 17,416.40 AA+ 2.26 30 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 CHANDLER ASSET ASSET MANAGEMENT 91282CMW8 UNITED STATES TREASURY 3.75 1,200,000.00 04/15/2025 1,196,953.13 100.30 1,203,656.26 0.62% Aa1/AA+ 2.54 04/15/2028 3.84% 1,197,420.60 3.62% 20,778.69 6,235.66 AA+ 2.36 UNITED STATES TREASURY3.5 02/07/2025 975,898.44 99.71 997,109.38 0.51% Aa1/AA+ 2.58 91282CHA2 04/30/2028 1,000,000.00 4.31% 980,677.73 3.62% 14,646.74 16,431.65 AA+ 2.41 UNITED STATES TREASURY3.125 02/29/2024 1,425,351.56 98.48 1,477,148.43 0.76% Aa1/AA+ 3.13 9128285M8 11/15/2028 1,500,000.00 4.30% 1,450,480.31 3.64% 17,705.50 26,668.12 AA+ 2.91 UNITED STATES TREASURY 2.375 05/16/2024 1,228,130.86 95.64 1,291,148.44 0.67% Aa1/AA+ 3.62 9128286T2 05/15/2029 1,350,000.00 4.41% 1,261,671.60 3.67% 12,110.56 29,476.84 AA+ 3.39 UNITED STATES TREASURY4.5 06/02/2025 1,528,710.94 102.80 1,542,070.32 0.79% Aa1/AA+ 3.67 91282CKT7 05/31/2029 1,500,000.00 3.98% 1,526,347.90 3.67% 22,684.43 15,722.42 AA+ 3.31 UNITED STATES TREASURY3.25 08/15/2024 1,462,089.84 98.50 1,477,558.59 0.76% Aa1/AA+ 3.75 91282CEV9 06/30/2029 1,500,000.00 3.82% 1,470,848.17 3.68% 12,319.97 6,710.42 AA+ 3.46 UNITED STATES TREASURY2.625 08/15/2024 1,420,078.13 96.24 1,443,632.82 0.74% Aa1/AA+ 3.83 91282CFCO 07/31/2029 1,500,000.00 3.81% 1,438,226.13 3.68% 6,633.83 5,406.69 AA+ 3.58 UNITED STATES TREASURY4.0 04/15/2025 1,202,812.50 101.11 1,213,265.63 0.63% Aa1/AA+ 3.83 91282CLC3 07/31/2029 1,200,000.00 3.94% 1,202,510.97 3.69% 8,086.96 10,754.66 AA+ 3.50 UNITED STATES TREASURY3.125 09/11/2024 2,455,664.06 97.95 2,448,828.13 1.26% Aa1/AA+ 3.92 91282CFJ5 08/31/2029 2,500,000.00 3.52% 2,465,049.40 3.69% 6,690.26 (16,221.27) AA+ 3.64 UNITED STATES TREASURY4.0 12/16/2024 2,717,666.02 101.13 2,780,937.50 1.43% Aa1/AA+ 4.08 91282CFT3 10/31/2029 2,750,000.00 4.27% 2,722,900.53 3.70% 46,032.61 58,036.97 AA+ 3.68 UNITED STATES TREASURY4.125 12/04/2024 1,503,339.84 101.61 1,524,140.63 0.79% Aa1/AA+ 4.17 91282CMA6 11/30/2029 1,500,000.00 4.08% 1,502,789.62 3.70% 20,794.06 21,351.01 AA+ 3.75 UNITED STATES TREASURY4.375 12/30/2024 1,998,984.38 102.59 2,051,718.76 1.06% Aa1/AA+ 4.25 91282CMD0 12/31/2029 2,000,000.00 4.39% 1,999,136.78 3.71% 22,112.77 52,581.98 AA+ 3.82 UNITED STATES TREASURY4.0 04/07/2025 1,010,390.63 101.14 1,011,445.31 0.52% Aa1/AA+ 4.50 91282CMU2 03/31/2030 1,000,000.00 3.77% 1,009,384.72 3.72% 109.89 2,060.59 AA+ 4.09 UNITED STATES TREASURY4.0 -- 2,999,121.10 101.17 3,035,156.25 1.56% Aa1/AA+ 4.67 91282CNG2 05/31/2030 3,000,000.00 4.01% 2,999,182.13 ° 3.72/° 40,327.87 35,974.12 AA+ 4.17 UNITED STATES TREASURY3.875 08/15/2025 1,002,343.75 100.60 1,006,015.62 0.52% Aa1/AA+ 4.83 91282CNN7 07/31/2030 1,000,000.00 3.82% 1,002,286.71 3.74% 6,528.53 3,728.91 AA+ 4.35 43,884,786.53 99.93 44,497,779.74 22.93% 2.71 Total US Treasury 44,540,000.00 3.81% 44,150,770.57 3.73% 330,381.99 347,009.17 2.49 31 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of September 30, 2025 CHANDLER ASSET ASSET MANAGEMENT 192,868,130.88 55.09 194,070,618.15 100.00% 1.55 Total Portfolio 194,120,044.15 3.94% 193,184,818.62 3.90% 790,293.04 885,799.53 1.39 Total Market Value + Accrued 194,860,911.20 32 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D it%CHANDLER ASSET MANAGEMENT 33 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D TRANSACTION LEDGER City of Tustin Cons• • 1 1: 1 1 • 191 1 Transaction Settlement Acq/Disp Type Date CUSIP Quantity Security Description Price Yield ACQUISITIONS CHANDLER ASSET ASSET MANAGEMENT Purchase 08/12/2025 025816EJ4 1,000,000.00 AMERICAN EXPRESS 100.185 4.28% (1,001,850.00) (2,054.64) (1,003,904.64) CO 4.35107/20/2029 0.00 UNITED STATES Purchase 08/18/2025 91282CNN7 1,000,000.00 TREASURY3.875 100.234 3.82% (1,002,343.75) (1,895.38) (1,004,239.13) 0.00 07/31/2030 Purchase 09/15/2025 58933YBQ7 1,000,000.00 MERCK & CO INC 4.15 100.794 3.97% (1,007,940.00) (691.67) (1,008,631.67) 0.00 09/15/2030 Purchase 09/16/2025 3137FX3Q9 1,000,000.00 FHMS K-117 A2 1.406 89.176 3.87% (891,757.81) (585.83) (892,343.64) 0.00 08/25/2030 Total Purchase 4,000,000.00 (3,903,891.56) (5,227.52) (4,189,330.34) 0.00 TOTAL ACQUISITIONS 4,000,000.00 (3,903,891.56) (5,227.52) (4,189,330.34) 0.00 DISPOSITIONS DUKEENERGY Maturity 08/15/2025 26442UAA2 (1,000,000.00) PROGRESS LLC 3.25 100.000 3.24% 1,000,000.00 0.00 1,000,000.00 0.00 08/15/2025 Maturity 09/11/2025 89114QCK2 (1,000,000.00) TORONTO-DOMINION 100.000 0.92% 1,000,000.00 0.00 1,000,000.00 0.00 BANK 0.75 09/11/2025 Total Maturity (2,000,000.00) 2,000,000.00 0.00 2,000,000.00 0.00 34 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D TRANSACTION LEDGER City of Tustin Cons Account I Account #10795 1 08/01/2025 Through 09/30/2025 1 Transaction Settlement CUSIP Quantity Security Description Price Type Date Sale 08/14/2025 90CAMP$00 (1,000,000.00) CAMP 1.000 C/CHANDLER ASSET MANAGEMENT Amount Interest Pur/ Total Amount Gain/Loss .. 1,000,000.00 0.00 1,000,000.00 0.00 Sale 08/21/2025 90CAMP$00 (2,000,000.00) CAMP 1.000 2,000,000.00 0.00 2,000,000.00 0.00 Sale 09/11/2025 90CAMP$00 (4,000,000.00) CAMP 1.000 4,000,000.00 0.00 4,000,000.00 0.00 Sale 09/18/2025 90CAMP$00 (1,500,000.00) CAMP 1.000 1,500,000.00 0.00 1,500,000.00 0.00 Total Sale (8,500,000.00) 8,500,000.00 0.00 8,500,000.00 0.00 TOTAL DISPOSITIONS (11,805,000.00) 11,805,000.00 0.00 11,805,000.00 0.00 35 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D IMPORTANT DISCLOSURES 2025 Chandler Asset Management, Inc, An Independent Registered Investment Adviser. CHANDLER ASSET MANAGEMENT Information contained herein is confidential. Prices are provided by ICE Data Services Inc ("IDS"), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. Performance results are presented gross -of -advisory fees and represent the client's Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index. Source ICE Data Indices, LLC ("ICE"), used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and licensee's use it at licensee's own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services. This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward -looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates. Ratings information have been provided by Moody's, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy. Security level ratings for U.S. Agency issued mortgage -backed securities ("MBS") reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest. 36 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D BENCHMARK DISCLOSURES CHANDLER ASSET MANAGEMENT The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating ICE BofA 1-5 Yr US Treasury & Agency Index (based on an average of Moody's, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. The ICE BofA 1-3 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating ICE BofA 1-3 Yr US Treasury & Agency Index (based on an average of Moody's, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 37 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D CITY OF TUSTIN Monthly Investment Report September 30, 2025 Restricted Deposits with Fiscal Agents [1) Description / Limits [21 [31 [4] Face Amount Shares YTM@Cost Credit Rating Cost Value +Accrued Interest i 4U- �Ik F,,,,b,ri,g what connect= us. [51 Market Value 2016 Successor Agency Tax Allocation Bonds, Refunding 13,797.83 N/A 13,797.83 13,797.83 2016 Water Revenue Bonds, Refunding 320,835.41 N/A 320,835.41 320,835.41 2020 Water Revenue Bonds 193,159.36 N/A 193,159.36 193,159.36 2024 Water Revenue Bonds 1,450,000.71 N/A 1,450,000.71 1,450,000.71 CFD 04-1 699,941.85 N/A 699,941.85 699,941.85 CFD 07-1 1,342,772.80 N/A 1,342,772.80 1,342,772.80 CFD 06-1 and 2014-1, Series 2025 2,757,101.62 N/A 2,757,101.62 2,757,101.62 6,777,609.58 6,777,609.58 6,777,609.58 Restricted Deposits with Fiscal Agents TOTAL 6,777,609.58 6,777,609.58 Docusign Envelope ID: 57D6COCO-360E-445D-BE3A-A5077108520D FMPUBLIC AGENCY AkFMQ M= ■ RETIREMENT SERVICES CITY OFTUSTIN Account Report for the Period PARS Post- Employment Benefits Trust 9/1/2025 to 9/30/2025 Aldo Schindler City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 Account Summary Balance as of Balance as of Source 9/1/2025 Contributions Earnings Expenses Distributions Transfers 9/30/2025 OPEB $5,376,130.39 $0.00 $114,899.50 $1,904.78 $0.00 $0.00 $5,489,125.11 PENSION $18,035,991.73 $0.00 $385,350.02 $6,388.33 $0.00 $0.00 $18,414,953.42 Totals $23,412,122.12 $0.00 $500,249.52 $8,293.11 $0.00 $0.00 $23,904,078.53 Investment Selection Source OPEB City of Tustin - OPEB PENSION City of Tustin - Pension Investment Objective Source Individual account based on Moderate - Index. The dual goals of the Moderate Strategy are growth of principal and income. It is expected that dividend and OPEB interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments. Individual account based on Moderate - Index. The dual goals of the Moderate Strategy are growth of principal and income. It is expected that dividend and PENSION interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments. Investment Return Annualized Return Source 1-Month 3-Months 1-Year 3-Years 5-Years 10-Years Plan's Inception Date OPEB 2.14% 4.64°% 9.65% 13.04% 7.08% 6/26/2018 PENSION 2.14% 4.64% 9.65% 13.06% 7.09% 6/26/2018 Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change. Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return. Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Headquarters- 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org