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HomeMy WebLinkAbout04 QUARTERLY INVESTMENT REPORT-DECEMBER 2025Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF 4 � Agenda Item Reviewed: Initial FAGENDA REPORTds City Manager Finance Director 4L: MEETING DATE: FEBRUARY 3, 2026 TO: ALDO E. SCHINLDER, 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 DECEMBER 31, 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: The investment report supports the City's Strategic Plan Goal C: Item 3, Financial Strength. Specifically, it 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 December 31, 2025 is rendered. The City's total cash and investments amounted to approximately $251 million as of December 31, 2025. The weighted average yield for the investment portfolio was 3.84%, which is slightly lower than the weighted average portfolio yield for the prior quarter. After the September 2025 rate cut, the Federal Reserve lowered the Federal Funds Rate twice Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF City Council Agenda Report Quarterly Investment Report for the Period Ended December 31, 2025 February 3, 2026 Page 2 more in October and December to a target range of 3.50%-3. 75%, in response to a softened job market. The most recent national unemployment rate from December 2025 dropped slightly to 4.4% after increasing to 4.6% in November. Other economic indicators continue to show accelerated consumer spending, and a moderate Gross Domestic Product (GDP) growth is projected for the full year 2025. The Consumer Price Index (CPI) for December remains elevated at 2.7% year -over -year, still above the Federal Reserve's 2% target. The 2-year Treasury yield declined to 3.48% by December 2025, compared to a yield of 3.57% in September 2025. Conversely, the 5-year Treasury yield increased to 3.73% by December 2025, compared to a yield of 3.66% in September 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 $18.7 million on December 31, 2025. The five-year annualized return for the PARS Pension Trust Fund was 5.84%. 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 $5.6 million on December 31, 2025. The five-year annualized return for the PARS OPEB Trust Fund was 5.83%. Investment Compliance Certification On January 22, 2026, 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: CBCD726A-4DB1-4938-A388-BCB79412E3BF City Council Agenda Report Quarterly Investment Report for the Period Ended December 31, 2025 February 3, 2026 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 December 31, 2025 3. Restricted Deposits with Fiscal Agents as of December 31, 2025 4. PARS Trust Statement as of December 31, 2025 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF / Oee �O= i4L�J;; "I January 22, 2026 FINANCE DEPARTMENT Remembering what connects us. 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 December 31, 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 portfolio 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, Signed by: 6590FA446D3B4C6... Lillyan Chandler, Chair City of Tustin Audit Commission DSigned by: 64 7473 Jennifer King, Finance Director/City Treasurer City of Tustin 300 Centennial Way, Tustin, CA 92780 • 714-573-3060 • tustinca.org Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF 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: CBCD726A-4DB1-4938-A388-BCB79412E3BF TABLE OF CONTENTS Q11CHANDLER ASSET MANAGEMENT City of Tustin I As of December 31, 2025 ECONOMIC UPDATE ACCOUNT PROFILE PORTFOLIO HOLDINGS TRANSACTIONS Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF CHANDLER it% ASSET MANAGEMENT Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF ECONOMIC UPDATE Q11CHANDLER ASSET MANAGEMENT The near -term economic outlook continues to be distorted by the data delays from the government shutdown. Recently released government data —reflecting conditions from two to three months ago —indicate inflation remains moderately above the Federal Reserve's target, while labor market conditions have continued to soften. As the flow of economic data normalizes, the Chandler team expects further yield curve steepening as the Federal Reserve moves the policy rate toward a more neutral range. U.S. trade and fiscal policy also remain sources of elevated market uncertainty. The Federal Reserve's December Federal Open Market Committee meeting concluded with the third consecutive 25-basis-point rate cut in 2025, lowering the target range to 3.50%-3.75%. However, policymakers remain divided on the path forward. Four Fed governors project one additional 25-basis-point cut in 2026, another four anticipate no further easing, eight expect multiple cuts, and three call for a potential rate hike. Chair Jerome Powell noted that the Fed is now "well placed to wait and see" how labor market conditions and inflation evolve in the near term. ■ The US Treasury yield curve steepened in December, as the 2-year Treasury yield dropped 2 basis points to 3.48%, the 5-year Treasury was up 13 basis points to 3.73%, and the 10-year Treasury yield was 15 basis points higher at 4.17%. The spread between the 2-year and 10- year Treasury yield points on the curve was 17 basis points wider from November at +69 basis points at December month -end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was +33 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was +54 basis points in December versus +21 basis points in November. V Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF EMPLOYMENT 1,000 t:11, 0 600 CA c 400 0 F_ F� 0 -200 -400 Nonfarm Payroll (000's) 15.0% Non -farm Payroll (000's) IIA 3-month average (000's) 11.0% e 7.0% -1.0% O 1 Source: US Department of Labor CHANDLER ASSET ASSET MANAGEMENT Unemployment Rate —Underemployment Rate (U6) Unemployment Rate (U3) O Source: US Department of Labor The December Nonfarm Payrolls report showed weaker -than -expected job growth, with payrolls rising by 50,000 compared with the consensus estimate of 70,000. This follows a downwardly revised gain of 56,000 in November. Employment declines were most pronounced in retail trade and construction, while leisure and hospitality posted the strongest gains. Notably, the unemployment rate edged down to 4.4% after increasing to 4.6% in November. W Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF JOB OPENINGS & LABOR TURNOVER SURVEY 14,000 12,000 10,000 0 0 8,000 C c �o c 6,000 s H c 4,000 2,000 CHANDLER ASSET MANAGEMENT Job Openings Recession Historical Average �o1 �o1 tio1 tio1 �o1 �o� 4'0� tio1 tio1 �o1 �o1 tio1 tio1 tio4 �o4 �o1 tio1 tio4 fob �o1 �o1, Off. 06' O) O& 09 10 11 I� 1� 17 1s ,76, Ij 1�p 19 -.1O Source: US Department of Labor The Labor Department's Job Openings and Labor Turnover Survey (JOLTS) reported that job openings fell to 7.1 million in November from a downwardly revised 7.4 million in October. The drop in vacancies, alongside slower hiring, suggests the labor market continues to soften, though employers remain cautious about laying off workers. The number of openings now roughly matches the number of unemployed individuals, pointing to a labor market that is approaching equilibrium. 5 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF INFLATION 10.0% 9.0% 8.0% 7.0% d 6.0% M s 5.0% 0 4.0% 0 3.0% 2.0% 1.0% 0.0% Consumer Price Index (CPI) CPI YOY % Change CHANDLER ASSET ASSET MANAGEMENT Personal Consumption Expenditures (PCE) 8.0/ PCE Price Deflator 7 0% — A YOY % Change PCE Core Deflator 6.0% YOY % Change Fed Target 5.0% M 4.0% 0 0 3.0% 2.0% 1.0% 0.0% O0c ✓Grl. O0c ✓4'> O0c ✓4'7 O00 ✓4�J O0c ✓4'7 OOC. s96 �d,. `r96 �d,. SPb �d,. SPb �d,. sPb �d,. SPb 1-10 Source: US Department of Labor Source: US Department of Commerce Inflation came in lower than expected in November, with the Consumer Price Index (CPI) rising 2.7% year over year and core CPI easing to 2.6%. Notably, both Owners' Equivalent Rent and Rent of Primary Residence contributed to the slowdown in services inflation. Shelter costs typically lag broader market trends by 12 to 18 months. Services, meanwhile, have remained the dominant driver of inflation throughout the post -pandemic period. The Personal Consumption Expenditures (PCE) Index for September, released on December 5, showed headline inflation up 0.3% from August and 2.8% year over year. Core PCE rose 0.2% on the month and 2.8% on an annual basis. M Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF CONSUMER 60.0% 50.0% 40.0% M s 30.0% 0 0 20.0% 10.0% 0.0% Retail Sales YOY % Change ■111■1.■1111111111111 oc, 9pr, ��1 9pr, �c 9'dr, 0c 9'dr, Oct �'dr, 0 �� �Q �Q �s I)s Source: US Department of Commerce 160 140 120 100 80 60 40 20 0 Consumer Confidence Recession CHANDLER ASSET MANAGEMENT 6, o, 6, 6. oP 6 6, 6, o, 6, 6. cO c0c0 c� c1 0V c1 0V c0', c� S > 9 1 �' S > 9 .l ,�' S Source: The Conference Board All time high is 144.70 (1131100); All time low is 25.30 (2128109) October Retail Sales, released with a one -month delay, were flat from the prior month but up 3.5%year over year. Eight of thirteen major categories posted gains, while motor vehicle sales declined following the expiration of federal tax incentives for electric vehicles, and gas station sales weakened amid lower fuel prices. The government shutdown may have weighed on consumer confidence regarding jobs, incomes, and overall financial conditions, both current and in the future. The Conference Board's Consumer Confidence Index declined to 89.1 in December from an upwardly revised 92.9 in November, marking its fifth consecutive monthly drop. Consumers were pessimistic about both business conditions and the labor market. IA Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF LEADING INDICATORS OF ECONOMIC ACTIVITY 15.0% 10.0% 5.0 % -15.0% -20.0% -25.0% Leading Economic Indicators (LEI) SP .SP S� S� S� S� S� S� SP SP SP b0 615, a9 69 60 bO b0 ,61 b1 ,6� b� S 9 .� 5 1 S 9 .�' � 1 S Source: The Conference Board CHANDLER ASSET MANAGEMENT Chicago Fed National Activity Index (CFNAI) 1.00 0.75 0.50 v 0.25 v a 0.00 t c :0 -0.25 M -0.50 -0.75 -1.00 SPp WS SPA WS SPA SPa Source: Federal Reserve Bank of Chicago S, S, SPp SPA Spa S, �S, 01 OS 00 j? .lj 7 "`)S. The Conference Board's Leading Economic Index (LEI) declined 0.3% in September, marking its second consecutive monthly decrease after a revised 0.3% drop in August. On a year -over -year basis, the index fell 3.3%. According to the Conference Board, weakening expectations among consumers and businesses contributed most to the LEI's overall decline. The index continues to signal slower economic growth through the end of 2025 and into 2026. The Chicago Fed National Activity Index (CFNAI) came in at -0.21 in September, following a downwardly revised -0.31 in August, signaling that U.S. economic activity remained below its historical trend for the sixth consecutive month. The three-month moving average ticked down to -0.21 in September from -0.18 in August, reinforcing signs of ongoing below -trend national growth. Employment -related indicators turned slightly positive, contributing +0.01 in September after a -0.11 result in August. F: Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF HOUSING Q11CHANDLER ASSET MANAGEMENT Annualized Housing Starts 2,400 2,200 ■ Multi Family Housing Starts 2,000 L ■ Single Family Housing Starts 1,800 1,600 w to 1,400 1,200 1A '0 1,000 800 600 �FoIe 0 Ootx, Oo� Oo� O�� OS 05 00 11 Source: US Department of Commerce OOre O�� Ore O�� O�� 1S 1S Vs �1 �S 24.0% 20.0% 16.0% 12.0% 8.0 % u 4.0% 0.0% o -4.0% } -8.0% -12.0% -16.0% -20.0% S&P/Case-Shiller 20 City Composite Home Price Index �Q1�Q11 cCc �Q1O� Ccl C ClK 0cl O�1O � OS0)00 1S 1S 1) 19 �1 �,�' l 'S Source: S&P The S&P Cotality Case-Shiller 20-City Composite Home Price Index rose 1.3% year over year in October, slightly down from a 1.4% gain in September and marking the slowest annual increase since mid 2023. Short-term momentum also weakened, with 80 percent of the 20 tracked markets recording month -over -month price declines on a non -seasonally adjusted basis. Housing starts declined in October to an annualized rate of 1.25 million units, down from 1.29 million in September. Existing home sales inched higher in November to a 4.13 million -unit pace, indicating only modest improvement despite some relief in mortgage rates. The Freddie Mac 30 year fixed mortgage rate fell throughout 2025 and averaged 6.18% at the end of December. 9 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF SURVEY BASED MEASURES C/"CHANDLER ASSET MANAGEMENT Institute of Supply Management (ISM) Surveys 70 ISM Manufacturing ISM Services 65 ' 60 55 50 45 40 O 2f ✓�, SP OP 2� ✓�, S" 6 27 ✓�, SP O� 2� ✓4, SP 6 4-7✓�, SP '0 Pc1>0 d,�z �1 ��1 c�1 dr��� c�� ar�S dr�Q �4 pest cyst d��S �S ��S c�S Source: Institute for Supply Management The Institute for Supply Management's (ISM) manufacturing index slipped to 47.9 in December, down from 48.2 in November, marking continued weakness across the sector. Manufacturing activity has now been in contraction for 36 of the past 38 months, as readings below 50 indicate contraction and those above 50 signal expansion. The latest decline was driven primarily by pullbacks in the Production and Inventories components. In contrast, the ISM services index remained in expansion territory, rising to 54.4 in December from 52.6 in November. Respondents attributed the improvement to seasonal strength, though many remained cautious about the potential impact of tariffs. Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF GROSS DOMESTIC PRODUCT (GDP) • • • ' � 1 40.0% Personal Consumption Expenditures 2.6% 0.4% 1.7% 2.4% 30.0% Gross Private Domestic Investment -1.3% 3.8% -2.7% 0.0% 20.0% Net Exports and Imports -0.1% -4.7% 4.8% 1.6% 10.0% Federal Government Expenditures 0.3% -0.4% -0.4% 0.2% 0.0 % State and Local (Consumption and Gross 0.3% 0.2% 0.3% 0.2% Investment) Total 1.9% -0.6% 3.8% 4.3% Source: US Department of Commerce CHANDLER ASSET MANAGEMENT Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change = M M M - -10.0% SP.a, /1-/�. sO,a, far SP��. sfar SP,a, �0, spa, -o �Q �Q �s �s Source: US Department of Commerce The U.S. inflation adjusted gross domestic product (GDP) report demonstrated continued strength in the third quarter, with the first estimate showing a 4.3% annualized quarter -over -quarter increase, up from 3.8% in the second quarter. Consumer spending accelerated, while exports contributed 1.6 percentage points to growth -both key drivers of the quarter's performance. The stronger -than -expected result represented the fastest pace of U.S. economic expansion in two years. The consensus projection calls for 1.1% growth in the fourth quarter and 2.0% growth for the full year 2025. 11 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF FEDERAL RESERVE Q11CHANDLER 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 6�°c, 6�°c, 6�°c, OS 0) 09 Source: Federal Reserve Effective Federal Funds Rate 6.00% 5.00% 4.00% e d 3.00% 2.00% 1.00% 0.00% c1 c1 01 c1 c1 c,� c,� c,� c0 c0 c0 c1 c1 c1 c1 c1 1 .r' S > 9 1 .r' S S > 9 .l ,�' S � 9 Source: Bloomberg The Federal Reserve lowered its benchmark interest rate by a quarter point to a target range of 3.50% to 3.75% at its December meeting, citing concerns about emerging weakness in the labor market. A few policymakers dissented, arguing that tighter monetary policy may still be warranted to ensure progress on price stability. Beginning December 1, the Fed also halted its balance sheet runoff, announcing that principal and interest payments from its holdings will be reinvested in Treasury securities to maintain ample reserves and support market stability. 12 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF BOND YIELDS US Treasury Note Yields 6.0 % 5.0 % 4.0 % 2.0 % 1.0 % 0.0 0(1 ')p �1 Source: Bloomberg 6.0% 5.0 % 4.0% 2.0 % 1.0 % 0.0 % CHANDLER ASSET ASSET MANAGEMENT US Treasury Yield Curve Dec-25 Sep-25 • Dec-24 S Syr ,yr 140 1-90 o 70 Source: Bloomberg At the end of December, the 2-year yield was 77 basis points lower, and the 10-year yield was 40 basis points lower, year -over -year. The spread between the 2-year and 10-year Treasury yield points on the curve increased to +69 basis points at December month -end versus +52 basis points at November 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 +95 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was +54 basis points in December versus +21 basis points in November. 13 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF CHANDLER it% ASSET MANAGEMENT 14 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF OBJECTIVES City of Tustin I As of December 31, 2025 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 MANAGEMENT 15 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF STATEMENT OF COMPLIANCE C/„CHANDLER ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 1 As of December 31, 2025 Rules Name Limit Actual Compliance Notes Status AGENCY MORTGAGE SECURITIES Max % (MV) 20.0 4.4 Compliant Max % Issuer (MV) 10.0 4.4 Compliant Max Maturity (Years) 5.0 4.7 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 0.4 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 14.7 Compliant 16 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF STATEMENT OF COMPLIANCE City of Tustin Cons Account I Account #10795 1 As of December 31, 2025 Rules Name Limit Actual .. Status Max % Issuer (Corporate & Commercial Paper; MV) 10.0 0.4 Compliant CHANDLER ASSET ASSET MANAGEMENT Max % Issuer (MV) 5.0 0.4 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 5.5 Compliant Max % Issuer (MV) 50.0 3.0 Compliant Max Maturity (Years) 5 3 Compliant JPA INVESTMENT POOLS Max % (MV) 100.0 37.5 Compliant Max % Issuer (MV) 50.0 37.5 Compliant Max Maturity (Years) 5.0 0.0 Compliant LOCAL AGENCY INVESTMENT FUND (LAIF) Max Concentration (MV) 75.0 30.0 Compliant MONEY MARKET MUTUAL FUNDS Max % (MV) 20.0 0.1 Compliant Max % Issuer (MV) 10.0 0.1 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: CBCD726A-4DB1-4938-A388-BCB79412E3BF STATEMENT OF COMPLIANCE Ci11CHANDLER ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 1 As of December 31, 2025 Compliance Rules 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 24.1 Compliant Max % Issuer (MV) 100.0 24.1 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: CBCD726A-4DB1-4938-A388-BCB79412E3BF PORTFOLIO SUMMARY C31CHANDLER ASSET MANAGEMENT City of Tustin Cons Account Account #10795 As of December 31, 2025 Portfolio Characteristics Account Summary Top Issuers Average Modified Duration 1.24 End Values as End Values asCalifornia Asset Mgmt Program 37.47% of 09/30/2025 of 12/31/2025 United States 24.13% Average Coupon 3.70% Market Value 194,070,618.15 250,307,068.08 LAIF 11.97% Average Purchase YTM 3.84% Accrued Interest 790,293.04 971,890.42 FHLMC 4.42% Total Market Value 194,860,912.20 251,278,958.50 Farm Credit System 2.99% Average Market YTM ° 3.76/° Income Earned 2,008,737.73 1 945 857.68 Federal Home Loan Banks 2.55% Average Credit Quality* AA+ Cont/WD (25,080,149.55) 54,350,345.43 Citizens Business Bank 1.54% Average Final Maturity 1.38 Par 194,120,044.15 250,138,721.10 Toyota Motor Corporation 0.41% Book Value 193,184,818.62 249,277,277.92 Average Life 1.35 Cost Value 192,868,130.88 248,961,940.88 Sector Allocation LGIP 37.47% US Treasury -1M 24.13% Corporate 14.65% LA F 11.97% Agency 5.54% Agency CMBS 4.42% Cash 1.60% Money Mkt Fd 0.13% Performance Review Total Rate of Return" City of Tustin Cons Agg Benchmark Return Maturity Distribution 100% 50% Credit Quality* 1.06% 5.06% 4.86% 4.76% 2.10% 1.11% 5.73% 4.57% 4.48% 1.34% Since Inception (12/01/20) 2.08% Secondary Benchmark Return 1.12% 5.09% 4.58% 4.48% 1.79% 1.77% Realized Rate of Return" 3M 1YR 2YRS 3YRS 5YRS 10YRS Since Inception City of Tustin Cons Agg 0.96% 3.94% 3.98% 3.89% 2.76% 2.73% *The average credit quality is a weighted average calculation of the highest of S&P, Moody's and Fitch. **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 I o Total rate of return: A measure of a portfolio's performance overtime. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and 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 includes interest earnings, realized gains and losses in the portfolio Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF MATURITY DISTRIBUTION City of Tustin Cons Account I Account #10795 1 As of December 31, 2025 150,000,000 133.012.6-1 B. 10 125.000,000 100,000,000 0 75.000,000 co 50,000,000 ! 25.000,000 CHANDLER ASSET ASSET MANAGEMENT 41944450- 0 - .25 .25 - .6 .6 - 1 1-2 2-3 3-4 4-5 20 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF PORTFOLIO SUMMARY City of Tustin I Account #10783 1 As of December 31, 2025 Portfolio Characteristics Average Modified Duration Average Coupon Average Purchase YTM Average Market YTM Average Credit Quality* Average Final Maturity Average Life Sector Allocation US Treasury 49.27% Corporate 29.92% Agency 11.31% Agency CMBS 7 9.03% Money Mkt Fd 0.26% Neg CD 0.20% Cash 0.00% CHANDLER ASSET ASSET MANAGEMENT Account Summary Top Issuers 2.54 End Values as End Values asUnited States 49.27% FHLMC 9.03% 3.60% Market Value 106,554,359.58 122,562,910.66 Farm Credit System 6.11% 3.89% Accrued Interest 790,293.04 971,890.42 Federal Home Loan Banks 5.20% Total Market Value 107,344,652.63 123,534,801.08 Toyota Motor Corporation 0.84% o 3.72/o Income Earned 1,022,633.49 1,065,890.92 Johnson &Johnson 0.84% AA Cont/WD 3,351,152.09 15,000,830.43 Cisco Systems, Inc. 0.84% 2.81 Par 106,603,785.58 122,394,563.68 The Home Depot, Inc. 0.84% Book Value 105,668,560.06 121,533,120.50 2.76 Cost Value 105,351,872.32 121,217,783.47 Maturity Distribution 75°% 50% 25% 0% O Credit Quality* AAA 12.55% N AA 71.40% 0 A-1 1.61% A 14.43% Performance Review Total Rate of Return" 3M 1YR 2YRS 3YRS 5YRS 10YRS Since Inception City of Tustin 1.11% 6.04% 5.01% 5.01% 2.10% 2.07% Benchmark Return 1.11% 5.73% 4.57% 4.48% 1.34% 1.34% Secondary Benchmark Return 1.12% 5.09% 4.58% 4.48% 1.79% 1.77% Realized Rate of Return" 3M 1YR 2YRS 3YRS 5YRS 10YRS Since Inception City of Tustin 0.97% 3.76% 3.34% 3.02% 2.58% 2.57% *The average credit quality is a weighted average calculation of the highest of S&P, Moody's and Fitch. **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, real - WA and 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: CBCD726A-4DB1-4938-A388-BCB79412E3BF CHANDLER it% ASSET MANAGEMENT Papi Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF ISSUERS City of Tustin Cons Account I Account #10795 1 As of December 31, 2025 California Asset Mgmt Program United States C/„CHANDLER ASSET MANAGEMENT Portfolio LGIP 37.47% US Treasury 24.13% LAI F LAI F 11.97 FHLMC Agency CMBS 4.42% Farm Credit System Agency 2.99% Federal Home Loan Banks Agency 2.55% Citizens Business Bank Cash 1.54% Toyota Motor Corporation Corporate 0.41% Johnson & Johnson Corporate 0.41% Cisco Systems, Inc. Corporate 0.41% The Home Depot, Inc. Corporate 0.41% State Street Corporation Corporate 0.41% Blackrock, Inc. Corporate 0.41% PepsiCo, Inc. Corporate 0.41% Bank of America Corporation Corporate 0.41% Deere & Company Corporate 0.41% Abbvie Inc. Corporate 0.41% BNY Mellon Corp Corporate 0.41% PACCAR Inc Corporate 0.41% Met Tower Global Funding Corporate 0.41% National Rural Utilities Cooperative Corporate 0.41% Northwestern Mutual Global Funding Corporate 0.41% CME Group Inc. Corporate 0.41% Florida Power & Light Corporate 0.40% U.S. Bancorp Corporate 0.40% New York Life Insurance Company Corporate 0.40% Eli Lilly and Company Corporate 0.40% Wells Fargo & Company Corporate 0.40% American Express Company Corporate 0.40% Merck & Co., Inc. Corporate 0.40% 23 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF ISSUERS City of Tustin Cons Account I Account #10795 1 As of December 31, 2025 Northern Trust Corporation Guardian Life Global Funding Chubb Limited C/„CHANDLER ASSET MANAGEMENT .Frail Corporate 0.40% Corporate 0.40% Corporate 0.40% Morgan Stanley Corporate 0.40% Amazon.com, Inc. Corporate 0.40% UnitedHealth Group Incorporated Corporate 0.40% The Charles Schwab Corporation Corporate 0.40% Royal Bank of Canada Corporate 0.39% The PNC Financial Services Group, In Corporate 0.39% Mastercard Incorporated Corporate 0.39% Honeywell International Inc. Corporate 0.38% Apple Inc. Corporate 0.38% Walmart Inc. Corporate 0.35% Public Service Enterprise Group Inco Corporate 0.24% First American Govt Oblig Fund Money Mkt Fd 0.13% The Goldman Sachs Group, Inc. Neg CD 0.10% Cash Cash 0.06% TOTAL 100.00% 24 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2025 CHANDLER ASSET ASSET MANAGEMENT AGENCY FEDERAL HOME LOAN BANKS 11/30/2023 1,503,345.00 100.85 1,512,811.50 0.60% Aa1/AA+ 0.88 3130AXU63 4.62511/17/2026 1,500,000.00 4.54% 1,500,989.28 3.62% 8,479.17 11,822.22 AA+ 0.85 FEDERAL FARM CREDIT BANKS 12/08/2023 1,001,820.00 101.67 1,016,735.00 0.41% Aa1/AA+ 1.76 3133EPH81 FUNDING CORP 4.5 10/04/2027 1,000,000.00 4.45% 1,000,837.49 3.51% 10,875.00 15,897.51 AA+ 1.66 FEDERAL HOME LOAN BANKS 07/26/2023 1,255,762.50 102.04 1,275,441.25 0.51% Aa1/AA+ 2.44 3130AWMN7 4.375 06/09/2028 1,250,000.00 4.27% 1,252,889.37 3.50% 3,342.01 22,551.88 AA+ 2.29 FEDERAL FARM CREDIT BANKS 08/29/2023 1,507,785.00 102.20 1,533,010.50 0.61% Aa1/AA+ 2.66 3133EPUN3 FUNDING CORP 4.5 08/28/2028 1,500,000.00 4.37% 1,504,140.05 3.62% 23,062.50 28,870.45 AA+ 2.45 FEDERAL HOME LOAN BANKS 4.75 12/08/2023 1,222,020.00 103.05 11236,608.40 0.49% Aa1/AA+ 2.94 3130AXQK7 12/08/2028 1,200,000.00 4.33% 11212,941.58 3.64% 3,641.67 23,666.82 AA+ 2.72 FEDERAL FARM CREDIT BANKS 01/29/2024 1,488,945.00 101.00 1,515,073.50 0.61% Aa1/AA+ 3.05 3133EPW84 FUNDING CORP 3.875 01/18/2029 1,500,000.00 4.04% 1,493,217.08 3.52% 26,317.71 21,856.42 AA+ 2.80 FEDERAL HOME LOAN BANKS 4.5 04/25/2024 1,384,040.00 102.77 1,438,813.60 0.57% Aa1/AA+ 3.19 3130AVBD3 03/09/2029 1,400,000.00 4.76% 11389,560.47 3.57% 19,600.00 49,253.13 AA+ 2.92 FEDERAL FARM CREDIT BANKS 04/25/2024 1,376,046.00 102.41 1,433,758.20 0.57% Aa1/AA+ 3.27 3133ERAK7 FUNDING CORP 4.375 04/10/2029 1,400,000.00 4.77% 1,384,150.04 3.59% 13,781.25 49,608.16 AA+ 3.00 FEDERAL FARM CREDIT BANKS 09/17/2024 2,002,440.00 99.51 1,990,104.00 0.80% Aa1/AA+ 3.69 3133ERSP7 FUNDING CORP 3.5 09/10/2029 2,000,000.00 3.47% 2,001,809.20 3.64% 21,583.33 (11,705.20) AA+ 3.39 FEDERAL HOME LOAN BANKS 09/30/2024 921,906.00 101.68 915,114.60 0.37% Aa1/AA+ 3.70 3130ATHX8 4.125 09/14/2029 900,000.00 3.58% 916,371.98 3.63% 11,034.38 (1,257.38) AA+ 3.37 13,664,109.51 101.60 13,867,470.55 5.54% 2.78 Total Agency 13,650,000.00 4.25% 13,656,906.54 3.59% 141,717.01 210,564.01 2.57 AGENCY CMBS 3137F1G44 FHMS K-065 A2 3.243 04/25/2027 750,000.00 06/08/2023 719,560.55 99.26 744,462.75 0.30% Aa1/AA+ 1.31 4.39% 740,021.65 3.71% 2,026.88 4,441.10 AAA 1.18 3137FEZU7 FHMS K-076 A2 3.9 04/25/2028 750,000.00 10/30/2023 708,310.55 100.11 750,803.25 0.30% Aa1/AA+ 2.32 5.32% 728,767.35 3.76% 2,437.50 22,035.90 AAA 2.09 3137FJEH8 FHMS K-081 A2 3.9 08/25/2028 700,000.00 05/29/2025 692,125.00 100.08 700,588.00 0.28% Aa1/AA+ 2.65 4.23% 693,592.64 3.79% 2,275.00 6,995.36 AAA 2.45 3137FJKE8 FHMS K-082 A2 3.92 09/25/2028 750,000.00 10/30/2023 705,556.64 100.21 751,548.75 0.30% Aa1/AA+ 2.74 5.31% 725,474.32 3.76% 2,450.00 26,074.43 AAA 2.48 25 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2025 CHANDLER ASSET ASSET MANAGEMENT 3137H4BYS FHMS K-746A2 2.03109/25/2028 1,500,000.00 05/15/2025 1,395,527.34 95.42 1,431,279.00 0.57% Aa1/AA+ 2.74 4.30% 1,415,203.02 3.81% 2,538.75 16,075.98 AAA 2.56 3137FJXV6 FHMS K-083 A2 4.05 09/25/2028 300,000.00 05/29/2025 297,609.38 100.46 301,368.90 0.12% Aa1/AA+ 2.74 4.26% 298,043.31 3.80% 1,012.50 3,325.59 AAA 2.53 3137FKZZ2 FHMS K-088 A2 3.69 01/25/2029 1,000,000.00 07/22/2024 963,789.06 99.49 994,878.00 0.40% Aaa/AA+ 3.07 4.58% 975,516.85 3.81% 3,075.00 19,361.15 AA+ 2.78 3137H5YC5 FHMS K-748 A2 2.26 01/25/2029 643,000.00 06/17/2025 601,858.05 95.51 614,138.95 0.25% Aa1/AA+ 3.07 4.22% 607,991.01 3.84% 1,210.98 6,147.93 AAA 2.83 3137FLN91 FHMS K-091 A2 3.505 03/25/2029 1,000,000.00 03/05/2025 970,234.38 98.88 988,835.00 0.40% Aa1/AAA 3.23 4.31% 976,322.80 3.84% 2,920.83 12,512.20 AA+ 2.90 3137FLYVO FHMS K-092 A2 3.298 04/25/2029 1,000,000.00 09/17/2024 981,484.38 98.20 981,978.00 0.39% Aa1/AA+ 3.31 3.72% 986,723.38 3.85% 2,748.33 (4,745.38) AAA 3.02 3137FNX54 FHMS K-097 A2 2.508 07/25/2029 1,250,000.00 12/18/2025 1,196,679.69 95.40 1,192,472.50 0.48% Aaa/AA+ 3.56 3.77% 1,197,052.85 3.89% 2,612.50 (4,580.35) AA+ 3.32 3137H9D71 FHMS K-750 A2 3.0 09/25/2029 750,000.00 06/17/2025 716,601.56 97.17 728,742.75 0.29% Aa1/AA+ 3.73 4.23% 720,790.00 3.88% 1,875.00 7,952.75 AAA 3.11 3137FX3Q9 FHMS K-117 A2 1.406 08/25/2030 1,000,000.00 09/11/2025 891,757.81 89.14 891,432.00 0.36% Aa1/AA+ 4.65 3.87% 898,264.50 4.02% 1,171.67 (6,832.50) AAA 4.34 10,841,094.39 97.29 11,072,527.85 4.42% 3.06 Total Agency CMBS 11,393,000.00 4.31% 10,963,763.68 3.83% 28,354.94 108,764.16 2.79 CASH CBGMMF$04 Citizens Business Bank 463,925.77 05/31/2025 463,925.77 1.00 463,925.77 0.19% NA/NA 0.00 0.00% 463,925.77 0.00% 0.00 0.00 NA 0.00 CBGMMF$03 Citizens Business Bank 3,392,672.21 12/31/2025 3,392,672.21 1.00 3,392,672.21 1.36% NA/NA 0.00 0.00% 3,392,672.21 0.00% 0.00 0.00 NA 0.00 CCYUSD Receivable 135,412.50 -- 135,412.50 1.00 135,412.50 0.05% Aaa/AAA 0.00 135,412.50 0.00 0.00 AAA 0.00 CCYUSD Receivable 3,663.60 -- 3,663.60 1.00 3,663.60 0.00% Aaa/AAA 0.00 3,663.60 0.00 0.00 AAA 0.00 3,995,674.08 1.00 3,995,674.08 1.60% 0.00 Total Cash 3,995,674.08 0.00% 3,995,674.08 0.00% 0.00 0.00 0.00 26 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2025 CORPORATE 00440EAV9 023135BX3 808513BR5 CHUBB INA HOLDINGS LLC 3.35 1,000,000.00 07/23/2021 1,102,780.00 99.81 05/03/2026 1.13% 1,002,101.73 3.90% AMAZON.COM INC 1.0 05/12/2026 CHARLES SCHWAB CORP 1.15 05/13/2026 CHANDLER ASSET ASSET MANAGEMENT 998,121.00 0.40% A2/A 0.34 5,397.22 (3,980.73) A 0.33 1,000,000.00 05/12/2021 995,200.00 99.02 990,221.00 0.40% Al/AA 0.36 1.10% 999,655.26 3.74% 1,361.11 (9,434.26) AA- 0.36 1,000,000.00 07/23/2021 1,007,990.00 99.01 990,128.00 0.40% A2/A- 0.36 0.98% 1,000,477.09 3.90% 1,533.33 (10,349.09) A 0.36 UNITEDHEALTH GROUP INC 1.15 07/28/2021 1,007,110.00 99.02 990,171.00 0.40% A2/A+ 0.37 91324PEC2 05/15/2026 1,000,000.00 1.00% 11000,433.10 3.84% 1,469.44 (10,262.10) A 0.36 ROYAL BANK OF CANADA 1.15 07/28/2021 999,090.00 98.59 985,861.00 0.39% Al/A 0.53 78016EZT7 07/14/2026 1,000,000.00 1.17% 999,902.46 3.85% 5,334.72 (14,041.46) AA- 0.52 931142ERO WALMART INC 1.05 09/17/2026 900,000.00 09/22/2021 902,277.00 98.21 883,899.00 0.35% Aa2/AA 0.71 1.00% 900,292.09 3.63% 2,730.00 (16,393.09) AA 0.69 MORGAN STANLEY 3.625 01/14/2025 979,620.00 99.74 997,396.00 0.40% Al/A- 1.05 61746BEF9 01/20/2027 1,000,000.00 4 70% 989,352.49 3.88/ 16,211.81 8,043.51 A+ 1.00 NORTHERN TRUST CORP 4.0 01/30/2023 986,540.00 100.33 1,003,262.00 0.40% A2/A+ 1.36 665859AW4 05/10/2027 1,000,000.00 4.35% 995,734.93 3.75% 5,666.67 7,527.07 A+ 1.22 JOHN DEERE CAPITAL CORP 4.65 01/10/2025 997,270.00 101.72 1,017,202.00 0.41% Al/A 2.02 24422EXZ7 01/07/2028 1,000,000.00 4.75% 998,154.93 3.75% 22,475.00 19,047.07 A+ 1.87 MET TOWER GLOBAL FUNDING 01/10/2025 996,910.00 101.64 1,016,354.00 0.41% Aa3/AA- 2.04 58989V2K9 4.8 01/14/2028 1,000,000.00 4.91% 997,903.32 3.95% 22,266.67 18,450.68 AA- 1.88 WELLS FARGO & CO 4.9 01/30/2025 1,000,770.00 100.84 1,008,418.00 0.40% Al/BBB+ 2.07 95000U3R2 01/24/2028 1,000,000.00 4.86% 1,000,413.22 4.29% 21,369.44 8,004.78 A+ 1.01 NATIONAL RURAL UTILITIES 02/07/2025 999,330.00 101.52 1,015,163.00 0.41% A2/NA 2.10 63743HFW7 COOPERATIVE FINANCE CORP 4.75 1,000,000.00 4.77% 999,529.40 3.99% 19,000.00 15,633.60 A 1.87 02/07/2028 PACCAR FINANCIAL CORP 4.55 05/02/2025 1,009,000.00 101.64 1,016,405.00 0.41% Al/A+ 2.17 69371RT63 03/03/2028 1,000,000.00 4.21% 1,006,900.29 3.75% 14,913.89 9,504.71 NA 2.02 00287YDY2 ABBVI E INC 4.65 03/15/2028 1,000,000.00 03/05/2025 1,006,680.00 101.68 1,016,768.00 0.41% A3/A- 2.21 4.40% 1,004,811.34 3.85% 13,691.67 11,956.66 NA 1.98 NEW YORK LIFE GLOBAL FUNDING 04/24/2025 1,002,060.00 101.00 1,010,029.00 0.40% Aa1/AA+ 2.32 64953BBW7 4.4 04/25/2028 1,000,000.00 4.33% 1,001,588.23 3.94% 8,066.67 8,440.77 AAA 2.17 PUBLIC SERVICE ELECTRICAND 06/29/2023 570,144.00 99.60 597,591.60 0.24% Al/A 2.33 74456QBU9 GAS CO 3.7 05/01/2028 600,000.00 4.87% 585,621.13 3.88% 3,700.00 11,970.47 NA 2.20 27 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2025 CHANDLER ASSET ASSET MANAGEMENT FLORIDA POWER & LIGHT CO 4.4 06/07/2023 987,550.00 101.25 1,012,454.00 0.40% Aa2/A+ 2.37 341081GN1 05/15/2028 1,000,000.00 4.69% 994,023.72 3.84% 5,622.22 18,430.28 AA- 2.07 90331HPS6 US BANK NA 4.73 05/15/2028 1,000,000.00 05/13/2025 1,000,600.00 101.01 1,010,097.00 0.40% A2/A+ 2.37 4.86% 1,000,469.98 4.24% 6,043.89 9,627.02 A+ 1.31 TOYOTA MOTOR CREDIT CORP 09/26/2023 996,180.00 103.51 1,035,100.00 0.41% Al/A+ 2.70 89236TL69 5.25 09/11/2028 1,000,000.00 5.34% 997,923.27 3.86% 16,041.67 37,176.73 A+ 2.46 BANK OF AMERICA CORP 4.979 02/14/2025 1,003,780.00 101.87 1,018,714.00 0.41% Al/A- 3.07 06051GMK2 01/24/2029 1,000,000.00 4.84% 1,002,660.13 4.19% 21,713.97 16,053.87 AA- 1.91 CISCO SYSTEMS INC 4.85 09/27/2024 1,037,530.00 102.64 1,026,412.00 0.41% Al/AA- 3.16 17275RBR2 02/26/2029 1,000,000.00 3.90% 1,026,644.16 3.95% 16,840.28 (232.16) NA 2.79 09290DAA9 BLACKROCK INC 4.7 03/14/2029 1,000,000.00 07/22/2024 1,002,010.00 102.22 1,022,222.00 0.41% Aa3/AA- 3.20 4.65% 1,001,374.57 3.95% 13,969.44 20,847.43 NA 2.84 BANK OF NEW YORK MELLON 04/24/2025 1,008,810.00 101.65 1,016,470.00 0.41% Aa2/AA- 3.30 06405LAH4 4.729 04/20/2029 1,000,000.00 4.41% 1,006,783.13 4.23% 9,326.64 9,686.87 AA 2.15 PNC FINANCIAL SERVICES GROUP 07/16/2025 969,260.00 98.35 983,539.00 0.39% A3/A- 3.31 693475AW5 INC 3.45 04/23/2029 1,000,000.00 4.34% 973,013.14 3.98% 6,516.67 10,525.86 A 3.07 MASTERCARD INC 2.95 04/17/2025 950,210.00 96.86 968,644.00 0.39% Aa3/A+ 3.42 57636ClAM6 06/01/2029 000.00 1,000,4.28% 958,663.03 3.94% 2,458.33 9,980.97 NA 3.20 HOME DEPOT INC4.75 04/17/2025 1,013,630.00 102.52 1,025,244.00 0.41% A2/A 3.48 437076DC3 06/25/2029 1,000,000.00 4.38% 1,011,305.15 3.97% 791.67 13,938.85 A 3.12 713448FX1 PEPSICO INC 4.5 07/17/2029 1,000,000.00 07/22/2024 997,560.00 101.96 1,019,576.00 0.41% Al/A+ 3.54 4.56% 998,266.53 3.90% 20,500.00 21,309.47 NA 3.12 AMERICANEXPRESS CO4.351 08/11/2025 1,001,850.00 100.73 1,007,296.00 0.40% A2/A- 3.55 025816EJ4 07/20/2029 1,000,000.00 4.28% 1,001,605.17 4.18% 18,854.33 5,690.83 A 2.35 532457CQ9 ELI LILLY AND CO 4.2 08/14/2029 1,000,000.00 08/15/2024 1,000,130.00 100.97 1,009,692.00 0.40% Aa3/A+ 3.62 4.20% 1,000,093.53 3.91% 15,983.33 9,598.47 NA 3.21 HONEYWELL INTERNATIONAL INC 08/15/2024 930,020.00 95.43 954,270.00 0.38% A2/A 3.62 438516BU9 2.7 08/15/2029 1,000,000.00 4.27% 949,307.64 4.07% 10,200.00 4,962.36 A 3.36 037833DP2 APPLE INC 2.2 09/11/2029 1,000,000.00 10/30/2024 908,490.00 94.32 943,236.00 0.38% Aaa/AA+ 3.70 4.31% 930,491.56 3.86% 6,722.22 12,744.44 NA 3.47 GUARDIAN LIFE GLOBAL FUNDING 03/05/2025 985,840.00 99.93 999,338.00 401391-13J1 4.179 09/26/2029 1,000,000.00 4.53% 988,399.86 4.20% 11,027.92 STATE STIR EET CORP 4.729 03/05/2025 1,003,660.00 102.33 1,023,333.00 857477CW1 02/28/2030 00 1,000,000.4.62% 1,003,044.20 4.11% 16,157.42 0.40% Aa1/AA+ 3.74 10,938.14 NA 3.39 0.41% Aa3/A 4.16 20,288.80 AA- 3.62 28 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2025 CHANDLER ASSET ASSET MANAGEMENT JOHNSON & JOHNSON 4.7 000.00 04/17/2025 1,021,100.00 103.04 1,030,448.00 0.41% Aaa/AAA 4.16 478160DJ0 03/01/2030 1,000,4.21% 1,018,020.15 3.90% 15,666.67 12,427.85 NA 3.64 12572QAL9 CME GROUP INC 4.4 03/15/2030 1,000,000.00 07/16/2025 1,000,190.00 101.44 1,014,384.00 0.41% Aa3/AA- 4.20 4.39% 1,000,170.93 4.02% 12,955.56 14,213.07 AA- 3.69 66815L2W8 NORTHWESTERN MUTUAL GLOBAL FUNDING 4.6 06/03/2030 1,000,000.00 07/02/2025 4.41% 1,008,110.00 1,007,288.16 101.47 4.23% 1,014,740.00 3,577.78 0.41% 7,451.84 Aa1/AA+ AAA 4.42 3.96 58933YBQ7 MERCK & CO INC 4.15 09/15/2030 1,000,000.00 09/11/2025 1,007,940.00 100.36 1,003,558.00 0.40% Aa3/A+ 4.71 3.97% 1,007,462.27 4.06% 12,911.11 (3,904.27) NA 4.11 36,397,221.00 100.52 36,675,756.60 14.65% 2.61 Total Corporate 36,500,000.00 3.95% 36,359,881.32 3.96% 409,068.75 315,875.28 2.24 LAIF 90LAIF$00 Local Agency Investment Fund 29,970,337.02 -- 29,970,337.02 1.00 29,970,337.02 11.97% NA/NA 0.00 State Pool 3.98% 29,970,337.02 3.98% 0.00 0.00 NA 0.00 29,970,337.02 1.00 29,970,337.02 11.97% 0.00 Total LAIF 29,970,337.02 3.98% 29,970,337.02 3.98% 0.00 0.00 0.00 LOCAL GOV INVESTMENT POOL 90CAMP$00 CAMP Total Local Gov Investment Pool MONEY MARKET FUND 31846V203 FIRSTAMER:GVT OBLG Y Total Money Market Fund NEGOTIABLE CD 93,781,809.92 -- 93,781,809.91 1.00 93,781,809.92 3.90% 93,781,809.91 3.90% 0.00 93,781,809.91 1.00 93,781,809.92 93,781,809.92 3.90% 93,781,809.91 3.90% 0.00 312,900.08 -- 312,900.08 1.00 312,900.08 3.38% 312,900.08 3.38% 0.00 312,900.08 1.00 312,900.08 312,900.08 3.38% 312,900.08 3.38% 0.00 37.47% NA/AAAm 0.00 0.01 NA 0.00 37.47% 0.00 0.01 0.00 0.13% Aaa/AAAm 0.00 0.00 AAA 0.00 0.13% 0.00 0.00 0.00 29 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2025 CHANDLER ASSET ASSET MANAGEMENT Goldman Sachs Bank USA 1.05 08/17/2021 243,775.00 98.35 240,969.26 0.10% Al/A+ 0.65 38149MYS6 08/25/2026 245,000.00 1.15% 244,841.68 3.65% 909.18 (3,872.42) AA- 0.63 243,775.00 98.35 240,969.26 0.10% 0.65 Total Negotiable CD 245,000.00 1.15% 244,841.68 3.65% 909.18 (3,872.42) 0.63 US TREASURY UNITED STATES TREASURY0.375 04/27/2021 1,957,500.00 99.74 1,994,804.00 0.80% Aa1/AA+ 0.08 91282CBH3 01/31/2026 2,000,000.00 0.83% 1,999,266.82 3.68% 3,138.59 (4,462.82) AA+ 0.08 UNITED STATES TREASURY4.0 07/24/2025 998,710.94 100.03 1,000,291.00 0.40% Aa1/AA+ 0.13 91282CGL9 02/15/2026 1,000,000.00 4.23% 999,717.04 3.70% 15,108.70 573.96 AA+ 0.12 UNITED STATES TREASURY0.75 04/27/2021 1,989,531.25 99.34 1,986,832.00 0.79% Aa1/AA+ 0.25 91282CBT7 03/31/2026 2,000,000.00 0.86% 1,999,481.80 3.49% 3,832.42 (12,649.80) AA+ 0.24 UNITED STATES TREASURY 12/19/2025 1,976,613.19 98.93 1,978,618.00 0.79% P-1/A-1+ 0.30 912797TJ6 04/21/2026 2,000,000.00 3.63% 1,978,381.94 3.62% 0.00 236.06 F1+ 0.30 UNITED STATES TREASURY3.875 11/20/2025 2,008,046.88 100.51 2,010,234.00 0.80% Aa1/AA+ 1.41 91282CNE7 O5/31/2027 2,000,000.00 3.60% 2,007,453.50 3.50% 6,813.19 2,780.51 AA+ 1.36 UNITED STATES TREASURY3.75 07/16/2025 1,396,554.69 100.39 1,405,413.80 0.56% Aa1/AA+ 1.50 91282CNL1 06/30/2027 1,400,000.00 3.88% 1,397,366.49 3.48% 145.03 8,047.31 AA+ 1.44 UNITED STATES TREASURY4.125 -- 3,719,978.91 101.07 3,780,029.22 1.51% Aa1/AA+ 1.75 91282CFM8 09/30/2027 3,740,000.00 4.27% 3,731,362.78 3.48% 39,416.41 48,666.44 AA+ 1.65 UNITED STATES TREASURY4.125 02/18/2025 2,487,792.97 101.14 2,528,515.00 1.01% Aa1/AA+ 1.87 91282CLX7 11/15/2027 2,500,000.00 4.31% 2,491,645.89 3.49% 13,389.16 36,869.11 AA+ 1.78 UNITED STATES TREASURY4.0 12/18/2025 1,768,525.39 100.97 1,766,954.00 0.71% Aa1/AA+ 1.96 91282CMB4 12/15/2027 1,750,000.00 3.44% 1,768,193.67 3.48% 3,269.23 (1,239.67) AA+ 1.86 UNITED STATES TREASURY3.5 02/23/2023 1,458,281.25 100.02 1,500,292.50 0.60% Aa1/AA+ 2.08 91282CGH8 01/31/2028 1,500,000.00 4.13% 1,482,365.82 3.49% 21,970.11 17,926.68 AA+ 1.96 UNITED STATES TREASURY2.75 11/08/2024 1,338,039.06 98.49 1,378,890.80 0.55% Aa1/AA+ 2.13 9128283W8 02/15/2028 1,400,000.00 4.22% 1,359,647.29 3.49% 14,542.12 19,243.51 AA+ 2.02 UNITED STATES TREASURY 3.75 04/15/2025 1,196,953.13 100.52 1,206,234.00 0.48% Aa1/AA+ 2.29 91282CMW8 04/15/2028 1,200,000.00 3.84% 1,197,676.59 3.51% 9,642.86 8,557.41 AA+ 2.16 UNITED STATES TREASURY 3.5 02/07/2025 975,898.44 99.98 999,844.00 0.40% Aa1/AA+ 2.33 91282CHA2 04/30/2028 1,000,000.00 4.31% 982,564.83 3.51% 5,994.48 17,279.17 AA+ 2.20 30 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2025 CHANDLER ASSET ASSET MANAGEMENT UNITED STATES TREASURY3.875 12/18/2025 2,019,609.38 100.84 2,016,876.00 0.81% Aa1/AA+ 2.54 91282CNM9 07/15/2028 2,000,000.00 3.47% 2,019,337.90 3.52% 35,801.63 (2,461.90) AA+ 2.36 UNITED STATES TREASURY3.5 12/18/2025 2,000,703.13 99.90 1,997,968.00 0.80% Aa1/AA+ 2.79 91282CPC9 10/15/2028 2,000,000.00 3.49% 2,000,694.26 3.54% 15,000.00 (2,726.26) AA+ 2.61 UNITED STATES TREASURY3.125 02/29/2024 1,425,351.56 98.88 1,483,242.00 0.59% Aa1/AA+ 2.88 9128285M8 11/15/2028 1,500,000.00 4.30% 1,454,473.13 3.54% 6,085.98 28,768.87 AA+ 2.71 UNITED STATES TREASURY 2.375 05/16/2024 1,228,130.86 96.15 1,298,003.40 0.52% Aa1/AA+ 3.37 9128286T2 05/15/2029 1,350,000.00 4.41% 1,267,818.51 3.60% 4,162.81 30,184.89 AA+ 3.19 UNITED STATES TREASURY4.5 06/02/2025 1,528,710.94 102.88 1,543,125.00 0.62% Aa1/AA+ 3.41 91282CKT7 05/31/2029 1,500,000.00 3.98% 1,524,536.24 3.60% 5,934.07 18,588.76 AA+ 3.13 UNITED STATES TREASURY 3.25 08/15/2024 1,462,089.84 98.86 1,482,891.00 0.59% Aa1/AA+ 3.50 91282CEV9 06/30/2029 1,500,000.00 3.82% 1,472,808.68 3.60% 134.67 10,082.32 AA+ 3.27 UNITED STATES TREASURY2.625 08/15/2024 1,420,078.13 96.71 1,450,663.50 0.58% Aa1/AA+ 3.58 91282CFCO 07/31/2029 1,500,000.00 3.81% 1,442,288.46 3.61% 16,477.58 8,375.04 AA+ 3.34 UNITED STATES TREASURY4.0 04/15/2025 1,202,812.50 101.29 1,215,516.00 0.49% Aa1/AA+ 3.58 91282CLC3 07/31/2029 1,200,000.00 3.94% 1,202,345.84 3.61% 20,086.96 13,170.16 AA+ 3.26 UNITED STATES TREASURY3.125 09/11/2024 2,455,664.06 98.31 2,457,812.50 0.98% Aa1/AA+ 3.67 91282CFJ5 08/31/2029 2,500,000.00 3.52% 2,467,297.97 3.62% 26,545.23 (9,485.47) AA+ 3.38 UNITED STATES TREASURY4.0 12/16/2024 2,717,666.02 101.31 2,785,986.50 1.11% Aa1/AA+ 3.83 91282CFT3 10/31/2029 2,750,000.00 4.27% 2,724,572.66 3.63% 18,839.78 61,413.84 AA+ 3.50 UNITED STATES TREASURY4.125 12/04/2024 1,503,339.84 101.73 1,525,899.00 0.61% Aa1/AA+ 3.91 91282CMA6 11/30/2029 1,500,000.00 4.08% 1,502,620.88 3.65% 5,439.56 23,278.12 AA+ 3.58 UNITED STATES TREASURY4.375 12/30/2024 1,998,984.38 102.67 2,053,438.00 0.82% Aa1/AA+ 4.00 91282CMD0 12/31/2029 2,000,000.00 4.39% 1,999,187.95 3.65% 241.71 54,250.05 AA+ 3.65 UNITED STATES TREASURY4.0 04/07/2025 1,010,390.63 101.27 1,012,734.00 0.40% Aa1/AA+ 4.25 91282CMU2 03/31/2030 1,000,000.00 3.77% 1,008,858.90 3.67% 10,219.78 3,875.10 AA+ 3.84 UNITED STATES TREASURY 3.875 12/18/2025 2,021,406.25 100.78 2,015,626.00 0.81% Aa1/AA+ 4.33 91282CMZ1 04/30/2030 2,000,000.00 3.61% 2,021,231.56 3.68% 13,273.48 (5,605.56) AA+ 3.93 UNITED STATES TREASURY4.0 -- 2,999,121.10 101.27 3,038,202.00 1.21% Aa1/AA+ 4.41 91282CNG2 05/31/2030 3,000,000.00 4.01% 2,999,226.32 3.68% 10,549.45 38,975.68 AA+ 4.00 UNITED STATES TREASURY 3.75 12/18/2025 2,010,937.50 100.24 2,004,766.00 0.80% Aa1/AA+ 4.50 91282CHJ3 06/30/2030 2,000,000.00 3.62% 2,010,851.53 3.69% 207.18 (6,085.53) AA+ 4.10 UNITED STATES TREASURY3.875 08/15/2025 1,002,343.75 100.74 1,007,383.00 0.40% Aa1/AA+ 4.58 91282CNN7 07/31/2030 1,000,000.00 3.82% 1,002,167.45 3.70% 16,216.03 5,215.55 AA+ 4.10 31 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF HOLDINGS REPORT City of Tustin Cons Account I Account #10795 1 As of December 31, 2025 CHANDLER ASSET ASSET MANAGEMENT UNITED STATES TREASURY 3.625 12/18/2025 1,998,828.13 99.64 1,992,890.00 0.80% Aa1/AA+ 4.67 91282CNX5 08/31/2030 2,000,000.00 3.64% 1,998,837.01 3.71% 24,633.98 (5,947.01) AA+ 4.20 UNITED STATES TREASURY 3.625 10/06/2025 995,312.50 99.61 996,133.00 0.40% Aa1/AA+ 4.75 91282CPA3 09/30/2030 1,000,000.00 3.73% 995,534.12 ° 3.71/° 9,261.68 598.88 AA+ 4.28 UNITED STATES TREASURY 3.625 11/13/2025 1,494,785.16 99.58 1,493,671.50 0.60% Aa1/AA+ 4.83 91282CPD7 10/31/2030 1,500,000.00 3.70% 1,494,923.30 3.72% 9,312.85 (1,251.80) AA+ 4.36 UNITED STATES TREASURY3.5 12/18/2025 1,986,328.13 98.99 1,979,844.00 0.79% Aa1/AA+ 4.91 91282CPN5 11/30/2030 2,000,000.00 3.65% 1,986,426.49 3.73% 6,153.85 (6,582.49) AA+ 4.45 59,755,019.89 100.18 60,389,622.72 24.13% 2.92 Total US Treasury 60,290,000.00 3.70% 59,991,163.61 3.60% 391,840.53 398,459.11 2.69 248,961,940.88 49.44 250,307,068.08 100.00% 1.38 Total Portfolio 250,138,721.10 3.84% 249,277,277.92 3.76% 971,890.42 1,029,790.16 1.24 Total Market Value + Accrued 251,278,958.50 32 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF CHANDLER it% ASSET MANAGEMENT 33 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF TRANSACTION LEDGER City of Tustin Cons Account I Account #10795 1 10/01/2025 Through 12/31/2025 1 ACQUISITIONS CHANDLER ASSET MANAGEMENT UNITED STATES Purchase 10/07/2025 91282CPA3 1,000,000.00 TREASURY3.625 99.531 3.73% (995,312.50) (697.12) (996,009.62) 0.00 09/30/2030 UNITED STATES Purchase 11/14/2025 91282CPD7 1,500,000.00 TREASURY3.625 99.652 3.70% (1,494,785.16) (2,102.90) (1,496,888.06) 0.00 10/31/2030 UNITED STATES Purchase 11/21/2025 91282CNE7 2,000,000.00 TREASURY3.875 100.402 3.60% (2,008,046.88) (36,844.26) (2,044,891.14) 0.00 05/31/2027 UNITED STATES Purchase 12/19/2025 91282CH13 2,000,000.00 TREASURY 3.75 100.547 3.62% (2,010,937.50) (35,054.35) (2,045,991.85) 0.00 06/30/2030 UNITED STATES Purchase 12/19/2025 91282CMB4 1,750,000.00 TREASURY4.0 101.059 3.44% (1,768,525.39) (769.23) (1,769,294.62) 0.00 12/15/2027 UNITED STATES Purchase 12/19/2025 91282CMZ1 2,000,000.00 TREASURY3.875 101.070 3.61% (2,021,406.25) (10,490.33) (2,031,896.58) 0.00 04/30/2030 UNITED STATES Purchase 12/19/2025 91282CNM9 2,000,000.00 TREASURY3.875 100.980 3.47% (2,019,609.38) (33,063.86) (2,052,673.24) 0.00 07/15/2028 UNITED STATES Purchase 12/19/2025 91282CNX5 2,000,000.00 TREASURY3.625 99.941 3.64% (1,998,828.13) (22,030.39) (2,020,858.52) 0.00 08/31/2030 UNITED STATES Purchase 12/19/2025 91282CPC9 2,000,000.00 TREASURY3.5 100.035 3.49% (2,000,703.13) (12,500.00) (2,013,203.13) 0.00 10/15/2028 UNITED STATES Purchase 12/19/2025 91282CPN5 2,000,000.00 TREASURY3.5 99.316 3.65% (1,986,328.13) (3,653.85) (1,989,981.98) 0.00 11/30/2030 34 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF TRANSACTION LEDGER Ci11CHANDLER ASSET MANAGEMENT City of Tustin Cons Account I Account #10795 1 10/01/2025 Through 12/31/2025 1 Transaction Settlement CUSIP Quantity Security Description Price . . Amount Interest Pur/ Total Amount Gain/Loss Type Date Yield Sold Purchase 12/23/2025 3137FNX54 1,250,000.00 FHMS K-097 A2 2.508 95.734 3.77% (1,196,679.69) (1,915.83) (1,198,595.52) 0.00 07/25/2029 Purchase 12/23/2025 912797TJ6 2,000,000.00 UNITED STATES 98.831 3.63% (1,976,613.19) 0.00 (1,976,613.19) 0.00 TREASURY04/21/2026 Local Agency Purchase 12/31/2025 90LAIF$00 32,000,000.00 Investment Fund State 1.000 3.98% (32,000,000.00) 0.00 (32,000,000.00) 0.00 Pool Purchase 12/31/2025 90CAMP$00 27,000,000.00 CAMP 1.000 (27,000,000.00) 0.00 (27,000,000.00) 0.00 Total Purchase 80,500,000.00 (80,477,775.33) (159,122.12) (80,636,897.45) 0.00 TOTAL ACQUISITIONS DISPOSITIONS Maturity 10/02/2025 912797MS3 Maturity 11/13/2025 14913R2H9 Maturity 11/20/2025 912797QR1 Maturity 12/18/2025 912797QZ3 Total Maturity 80,500,000.00 (80,477,775.33) (159,122.12) (80,636,897.45) (1,000,000.00) UNITED STATES 100.000 4.29% 1,000,000.00 0.00 1,000,000.00 TREASURY 10/02/2025 CATERPILLAR (1,000,000.00) FINANCIAL SERVICES 100.000 0.98% 1,000,000.00 0.00 1,000,000.00 CORP 0.8 11/13/2025 (1,750,000.00) UNITED STATES 100.000 4.28% 1,750,000.00 0.00 1,750,000.00 TREASURY 11/20/2025 (1,750,000.00) UNITED STATES 100.000 4.29% 1,750,000.00 0.00 1,750,000.00 TREASURY 12/18/2025 (5,500,000.00) 5,500,000.00 0.00 5,500,000.00 Sale 10/16/2025 90CAMP$00 (1,000,000.00) CAMP 1.000 1,000,000.00 0.00 1,000,000.00 Sale 10/30/2025 90CAMP$00 (1,200,000.00) CAMP 1.000 1,200,000.00 0.00 1,200,000.00 Sale 12/31/2025 90LAIF$00 Total Sale TOTAL DISPOSITIONS Local Agency (15,000,000.00) Investment Fund State 1.000 3.98% 15,000,000.00 0.00 15,000,000.00 Pool (17,200,000.00) 17,200,000.00 0.00 17,200,000.00 (22,700,000.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22,700,000.00 0.00 22,700,000.00 0.00 35 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF IMPORTANT DISCLOSURES City of Tustin I As of December 31, 2025 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: CBCD726A-4DB1-4938-A388-BCB79412E3BF BENCHMARK DISCLOSURES City of Tustin I As of December 31, 2025 CHANDLER ASSET MANAGEMENT The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated ICE BofA 1-5 Yr US Treasury & Agency US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average Index 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 ICE BofA 1-3 Yr US Treasury &Agency US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Index 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: CBCD726A-4DB1-4938-A388-BCB79412E3BF CITY OF TUSTIN Monthly Investment Report December 31, 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--bering what connect= us. [51 Market Value 2016 Successor Agency Tax Allocation Bonds, Refunding 14,296.12 N/A 14,296.12 14,296.12 2016 Water Revenue Bonds, Refunding 1,946.86 N/A 1,946.86 1,946.86 2020 Water Revenue Bonds 132.41 N/A 132.41 132.41 2024 Water Revenue Bonds 1,299,311.81 N/A 1,299,311.81 1,299,311.81 CFD 04-1 704,823.48 N/A 704,823.48 704,823.48 CFD 07-1 1,354,713.64 N/A 1,354,713.64 1,354,713.64 CFD 06-1/2014-1 Refunding 2025 3,112,058.47 N/A 3,112,058.47 3,112,058.47 6,487,282.79 6,487,282.79 6,487,282.79 Restricted Deposits with Fiscal Agents TOTAL 6,487,282.79 6,487,282.79 Docusign Envelope ID: CBCD726A-4DB1-4938-A388-BCB79412E3BF C AGENCY �Ak I ■ RETgIRIEM NT SERVICES CITY OFTUSTIN Account Report for the Period PARS Post- Employment Benefits Trust 12/1/2025 to 12/31/2025 Aldo Schindler City Manager City of Tustin 300 Centennial Way Tustin, CA 92780 Account Summary Balance as of Balance as of Source 12/1/2025 Contributions Earnings Expenses Distributions Transfers 12/31/2025 OPEB $5,577,468.62 $0.00 $10,131.63 $1,952.19 $0.00 $0.00 $5,585,648.06 PENSION $18,711,089.99 $0.00 $34,121.59 $6,547.20 $0.00 $0.00 $18,738,664.38 Totals $24,288,558.61 $0.00 $44,253.22 $8,499.39 $0.00 $0.00 $24,324,312.44 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 0.18% 1.86% 12.91% 11.95% 5.83% 6/26/2018 PENSION 0.18% 1.86% 12.91% 11.97% 5.84% 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