Agenda — City Council Subcommittee, August 24, 2026

Finance Subcommittee Agenda
City of Campbell, 70 N. First Street, Campbell, California

This Special Meeting of the Finance Subcommittee will be conducted in person and is compliant with provisions of the Brown Act.

Members of the public may attend this meeting in person at Campbell City Hall.

Public comment will also be accepted via email at [email protected] prior to the meeting. Please indicate in the subject line “FOR PUBLIC COMMENT.” Written comments received by 9:00 a.m. on the day of the meeting will be posted on the website and distributed to the Sub-Committee before the meeting.

SPECIAL MEETING OF THE CAMPBELL FINANCE SUBCOMMITTEE
Monday, August 24, 2025 9:00 a.m.

Campbell City Hall
Ralph Doetsch Conference Room
70 North First Street, Campbell CA 95008

CALL TO ORDER

PUBLIC COMMENTS

1. Review of Annual Investment Policy and Strategy Updates

Recommended Action: Receive and accept FY 2026-27 Annual Investment Policy and Strategy Updates and provide feedback and recommendation for acceptance by the City Council.

ADJOURN

In compliance with the Americans with Disabilities Act, assistive listening devices are available for meetings held in the Council Chambers. If you require accommodation to participate in the meeting, please contact Will Fuentes in the Finance Department, at [email protected] or (408) 866-2113.

A Finance Sub-Committee Meeting has been scheduled for Monday, August 24 at 9:00 am in the Doetsch Conference Room to discuss the annual review of the Investment Policy update.

California Government Code recommends that the City Council review the City’s Investment Policy annually. The City’s I nvestment Policy requires the Finance Sub- Committee to review any proposed changes and make recommendations to the Council accordingly. It also requires the Sub- Committee to review the Investment Strategy annually as well and share a summary of that strategy with Council.

The Investment Policy is updated annually to conform to California Government Code (CGC) Section 53600 et. seq. There are no statutory revisions needed this year, but staff and the City’s investment advisors (Chandler) are recommending three minor revisions below. All page numbers reference the Redline version:
• Header – Modified to September 15, 202 6 throughout to reflect tentative Council review and approval date.

• Page 6 (Section V.5) – Per changes adopted into CGC, increased Commercial Paper maximum maturity from 270 days to 397 days (9 months to 13 months max maturity) . This is not a statutory requirement, but such an increase in maturity is now allowable by the CGC and staff recommends going to the maximum allowable limit to expand investment flexibility as allowed by the CGC.

However, please note that the City rarely invests in commercial paper and currently has no commercial papers holdings.

• Page 9 (Section V.5) – Per changes adopted into CGC, extending by 5 years a sunsetting clause from 2026 to 2031 that allows for investment in securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity. This is also not a statutory requirement, but such an extension is now allowable by the CGC and staff recommends making the adjustment to maintain current investment flexibility. However, please note that the City rarely invests in these types of securities and currently has none.

The attached Investment Strategy also provides a review of the City’s investment strategy and performance over the past fiscal year , recommendations for the current fiscal year, and an economic update for the quarter ending June 30, 2026.

City of Campbell

MEMORANDUM
Finance Department

To: Finance Sub-Committee Date: August 24, 2026

From: Will Fuentes, Finance Director

Subject: FY 2026-27 Annual Investment Policy and Investment Strategy Update

Attachments: Investment Policy
Investment Strategy Memorandum

Distribution:

Daniel E. Furtado, Mayor
Sergio Lopez, Council Member
Brian Loventhal, City Manager
City of Campbell, California
Investment Policy Date: September 1615, 20252026

1 I. PURPOSE
It is the policy of the City of Campbell to invest public funds in a prudent manner which conforms to all statutes governing the investment of public funds while providing security and meeting the daily cash flow needs of the City.

The purpose of this document is to identify the policies guiding prudent investment of the City’s temporarily idle funds and to establish guidelines and objectives for suitable investments including delegation of authority, prudence, monitoring and reporting, policy review, diversification, eligible securities, safekeeping, collateralization, selection of financial institutions and broker/dealers, glossary of terms, and forms utilized.

II. SCOPE
A. This investment policy shall apply to all financial assets, investment activities, and debt issues (excluding those debt issues subject to governing documents) of the City of Campbell including the following fund types:

1. General Fund

2. Special Revenue F unds

3. Debt Service Funds

4. Capital Projects F unds

5. Internal Service F unds

6. Trust and Agency Funds
B. The policy does not cover funds held by the Public Employees Retirement System nor funds of the Deferred Compensation program.

III. OBJECTIVES
A. It is the objective of this policy to pr ovide a system which will monitor and forecast revenues and expenditures so that the City can invest temporarily idle funds to the fullest extent possible. The temporarily idle funds shall be invested in accordance with provisions of California Government Code Section 53600 et. seq.

B. The City adheres to conservative investment philosophies including investment of all idle cash, preservation of principal at the risk of yield, maintenance of adequate liquidity to meet anticipated cash flow needs and diversification to avoid the risks inherent in over investing in any one asset class.

C. This policy specifically prohibits trading securities for the sole purpose of speculating on the future direction of interest rates. It further prohibits reverse repurchase agreements, use of derivative products, and/or leveraging of the portfolio.

D. The City shall ensure the safety of invested funds by limiting credit and interest rate risks. The three primary objectives of the City's Investment Policy in order of priority are:

City of Campbell, California
Investment Policy Date: September 1615, 20252026

2 1. Safety: Safety of principal is the foremost objective of the City of Campbell.

Safety and the minimizing of risk associated with investing refer to attempts to reduce the potential for loss of principal, interest or a combination of the two. The City ensu res safety of its invested idle funds and limits credit and interest rate risks by following these guidelines (all of which are detailed within the body of the Investment Policy):
a. Investing only in those instruments that are generally accepted as safe investment vehicles for local government as authorized by this Policy,
b. Carefully reviewing the qualifications and financial strength of financial institutions and broker/dealers prior to conducting business with them,
c. Diversifying the investment portfolio as prescribed within this Policy,
d. Structuring the portfolio such that securities mature to meet the City's cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to their maturation,
e. Limiting the final maturity of purchased securities to five years.

The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints, and risk tolerances, and f. Ensuring the physical security or safekeeping of the City's investments.

2. Liquidity: Liquidity is the second most important objective of the City's Policy.

Liquidity refers to the ability to convert an investment to cash promptly without loss of principal and minimal loss of interest. For example, this is accomplished by maintaining sufficient balances in liquid investment products, such as the Local Agency Investment Fund (LAIF) or other local government investment pools which offer same day availability, or by investing in securities with active secondary or resale markets.

3. Return: Return on the City's portfolio is last in rank among investment objectives. Investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed.

IV. STRUCTURE AND RESPONSIBILITY
A. DELEGATION OF AUTHORITY:

1. The City Council assumes direction over the City’s investments, and assigns management responsibility for the investment program to the Finance Director, who shall serve as Chief Fiscal Officer, and have legal custody of funds. The Finance Director may provide for delegation of his/her responsibilities to other City of Campbell, California
Investment Policy Date: September 1615, 20252026

3 persons under his/her control responsible for investment transactions, including the delegation of certain portions of the investment portfolio to one or more external and qualified investment advisers or such other designee approved by the Finance Sub-Committee. External investment advisors who are engaged b by the City shall be registered under the Investment Advisers Act of 1940 and shall assist in the management of the City's investment portfolio in a manner consistent with the City's objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

B. POLICY REVIEW:

1. This Investment Policy shall be reviewed and approved annually as recommended by California Government Code Section 53600 et. seq.

C. RESPONSIBILITIES:

1. Responsibilities of the City Council: The City Council consists of a Mayor and four Council members and is the policy setting board for the City of Campbell. The City Council has considered and adopted a written Investment Policy for the City of Campbell. Pursuant to the City's Financial Policies, the City Council shall on an annual basis, approve necessary changes to the Investment Policy as recommended by the Finance Sub-Committee. On a quarterly basis, the City Council shall receive, review and accept the Quarterly Investment Report submitted by the Finance Department.

2. Responsibilities of the Finance Sub-Committee: The Finance Sub- Committee consists of two Council members, the City Manager, the Finance Director, and the Assistant Finance Director. On an annual basis, this Sub- Committee shall review necessary revisions to the established Investment Policy of the City of Campbell and make a recommendation to the City Council accordingly. No less than once per fiscal year, the City's investment strategy will be reviewed by the Finance Sub-Committee. A summary of the investment strategy will be shared with the City Council at that time. Should market activity encourage revisions in the City's strategy, the Finance Sub-Committee shall be advised accordingly.

3. Responsibilities of the City Manager: The City Manager is responsible for directing and supervising the Finance Director. He/she has the responsibility of keeping the City Council fully advised as to the financial condition of the City. a. Wire Transfer Authority: The City Manager has unlimited wire transfer authority for a single transaction. Such a transaction requires joint review, approval and verification in advance by the City Manager and Finance Director. The transaction shall be highlighted in the Quarterly Investment Report to Council.

4. Responsibilities of the Finance Director: The Finance Director is appointed by the City Manager and serves as Chief Fiscal Officer. He/she is subject to the direction and supervision of the City Manager. The Finance Director is charged with the responsibility for the conduct of all Finance Department functions including the custody and investment of City funds, and investment of those funds in accordance with principles of sound treasury management and in accordance with applicable laws and policies. Refer to "Delegation of Authority" for additional information pertaining to delegation of investment responsibilities.

City of Campbell, California
Investment Policy Date: September 1615, 20252026

4 a. Wire Transfer Authority: The Finance Director has wire transfer authority not to exceed $5,000,000 for a single transaction. Such a transaction shall be reviewed, approved and verified in advance by the City Manager. The transaction shall be highlighted in the Quarterly Investment Report to Council.

5. Responsibilities of the Assistant Finance Director: The Assistant Finance Director is appointed by the Finance Director and serves as the Investment Manager for the City pursuant to specific delegation authority provided by this Investment Policy. He/she is subject to the direction and supervision of the Finance Director and is charged with the responsibility and conduct of the day- to-day accounting and cash management functions of the City. This includes the custody and investment of City funds, and investment of those funds in accordance with principles of sound treasury management and in accordance with applicable laws and policies. Refer to "Delegation of Authority" for additional information pertaining to delegation of investment responsibilities.

Implementation and maintenance of the Investment Policy are the responsibility of this individual. On an annual basis, the Assistant Finance Director shall present to the Finance Sub-Committee, recommended changes to the City's Investment Policy. On a quarterly basis, the Assistant Finance Director shall present to the City Council, via the City Manager, a Quarterly Investment Report.

Refer to "Monitoring and Reporting" for additional information. a. Wire Transfer Authority: The Assistant Finance Director has wire transfer authority not to exceed $3,000,000 for a single investment transaction.

Such a transaction shall be reviewed, approved and verified in advance by the Finance Director, and shall be reported in the Quarterly Investment Report to Council.

6. Responsibilities of the Accountant: The Accountant is appointed by the Finance Director and is subject to the direction and supervision of the Assistant Finance Director. The Accountant carries out the specific instructions provided by the Assistant Finance Director regarding the purchase and sale of securities in accordance with principles of sound treasury management and in accordance with applicable laws and policies. Accounting for the various investment transactions is the responsibility of the Accountant.
a. Wire Transfer Authority: The Accountant has wire transfer authority not to exceed $2,100,000 for a single investment transaction. The standard operating procedure is that all cash and investment wire transfers made by the Accountant and Senior Accountant are reviewed, approved and verified in advance by the Assistant Finance Director, and are reported in the Quarterly Investment Report to Council.

D. Prudence:

1. Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard. This means that all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to City of Campbell, California
Investment Policy Date: September 1615, 20252026

5 this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

2. The City’s overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that no investment is totally riskless and that the investment activities of the City are a matter of public record. Accordingly, while the intent of the City is to hold purchased securities to maturity, the City recognizes that occasional measured losses may be advisable in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that (a) adequate diversification has been implemented and (b) the sale of a security is in the best long-term interest of the City.

E. Ethics and Conflicts of Interest:

Elected officials and employees involved in th e investment process shall refrain from personal business activity that could conflict with proper execution of the City’s investment program or could impair or create the appearance of an impairment of their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Manager any business interests they have in financial institutions that conduct business with the City, and they shall subordinate their personal investment transactions to those of the City. In addition, the City Manager, the Finance Director and others with delegated investment authority shall file a Statement of Economic Interests each year pursuant to California Government Code Section 87203 and regulations of the Fair Political Practices Commission.

All participants in the investment process are required to comply with terms of the Political Reform Act, Fair Political Practices Commission Regulations promulgated thereunder (2 C.C.R. §§ 18110 through 18998), the City’s Conflict of Interest Policy, including, without limitation, filing of Form 700, notification and recusal obligations, and Government Code section 1090 prohibitions.

Conflict with State Statutes or Regulations

1. In the instance of any conflict between the City of Campbell Investment Policy and Government Code Section 53600 et seq, the more stringent requirement shall apply.

V. AUTHORIZED SECURITIES AND TRANSACTIONS
All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609 and 53630-53686, except that pursuant to California Government Code Section 5903(e), proceeds of bonds and any moneys set aside or pledged to secure payment of the bonds may be invested in securities or obligations described in the ordinance, resolution, indenture, agreement, or other instrument providing for the issuance of the bonds. Any revisions or extensions of these code sections will be assumed City of Campbell, California
Investment Policy Date: September 1615, 20252026

6 to be part of this Policy immediately upon being enacted. However, in the event that amendments to these sections conflict with this Policy and past City investment practices, the City may delay adherence to the new requirements when it is deemed in the best interest of the City to do so. Percentage holdings limits listed in this section apply at the time the security is purchased.

The City has further restricted the eligible types of securities and transactions to the following:

1. United States Treasury bills, notes, bonds, or strips with a final maturity not exceeding five years from the date of purchase.

2. Federal Agency debentures and mortgage-backed securities with a final maturity not exceeding five years from the date of purchase issued by the Government National Mortgage Association (GNMA). The aggregate investment in Federal Agency obligations shall not exceed 75% of the City’s total portfolio. No more than 30% of the total portfolio may be invested in any single Agency issuer. No more than 20% of the total portfolio may be invested in callable agency securities.

3. Federal Instrumentality (government sponsored enterprise (GSE)) debentures, discount notes, callable and step-up securities, with a final maturity not exceeding five years from the date of purchase, issued by the following only: Federal Home Loan Banks (FHLB), Federal National Mortgage Association (FNMA), Federal Farm Credit Banks (FFCB) and Federal Home Loan Mortgage Corporation (FHLMC). The aggregate investment in Federal Instrumentality obligations shall not exceed 75% of the City’s total portfolio. No more than 30% of the total portfolio may be invested in any single Agency/GSE issuer. No more than 20% of the total portfolio may be invested in callable agency securities.

4. Repurchase Agreements with a final termination date not exceeding one year collateralized by U.S. Treasury obligations, Federal Agency securities, or Federal Instrumentality securities listed in items 1, 2 and 3 above with the maturity of the collateral not exceeding five years. For the purpose of this se ction, the term collateral shall mean purchased securities under the terms of the City’s approved Master Repurchase Agreement. The purchased securities shall have a minimum market value including accrued interest of 102% of the dollar value of the transaction. Collateral shall be held in the City's custodian bank, as safekeeping agent, and the market value of the collateral securities shall be marked-to-the-market daily. The aggregate investment in repurchase agreements shall not exceed 10% of the City’s total portfolio.

Repurchase Agreements shall be entered into only with broker/dealers that have executed a City approved Master Repurchase Agreement with the City. Repurchase counterparties shall be recognized as Primary Dealers with the Federal Reserve Bank of New York, or shall have a primary dealer within their holding company structure. Broker/dealers approved as Repurchase Agreement counterparties shall have a short-term credit rating of at least A-1 or the equivalent and a long-term credit rating of at least A or the equivalent.

The Finance Director shall maintain a copy of the City's approved Master Repurchase Agreement along with a list of the broker/dealers that have executed a Master Repurchase Agreement with the City.

5. Prime Commercial Paper with a maturity not exceeding 270 397 days from the date of purchase with the highest ranking or of the highest letter and number rating as provided for by a Nationally Recognized Statistical Ratings Organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either sub- City of Campbell, California
Investment Policy Date: September 1615, 20252026

7 paragraph a. or sub-paragraph b. below:
a. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of five hundred million dollars ($500,000,000) and (3) have debt other than commercial paper, if any, that is rated “A” or higher by a NRSRO.
b. The entity shall (1) be organized within the United States as a special purpose corporation,
trust, or limited liability company, (2) have program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated “A-1” or higher, or the equivalent, by a NRSRO.

No more than 5% of the City’s total portfolio may be invested in the commercial paper and medium-term notes of any single issuer, and the aggregate investment in commercial paper shall not exceed 25% of the City’s total portfolio.

6. Eligible Bankers Acceptances provided that no more than 5% of the City’s total portfolio may be invested in banker’s acceptances of any one issuer, and the aggregate investment in banker’s acceptances shall not exceed 30% of the City’s total portfolio. The maximum maturity does not exceed 180 days.

7. Medium Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, with a final maturity not exceeding five years from the date of purchase, and are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 5% of the City’s total portfolio may be invested in medium term notes of any one issuer and the aggregate investment in medium term notes shall not exceed 30% of the City’s total portfolio.

8. Non-negotiable Time Certificates of Deposit and savings deposits with a maturity not exceeding five years, in state or nationally chartered banks or savings and loans with a California branch office that are insured by the FDIC. Time Certificates of Deposit exceeding the FDIC insured amount must be secured pursuant to California Government Code Section 53652. No more than $1 million may be invested in non-negotiable time certificates of deposit of any one issuer and the aggregate amount invested in non- negotiable time certificates of deposit shall not exceed 20% of the City’s total portfolio.

9. Certificates of Deposit at commercial bank, savings bank, or savings and loan association that uses a private sector entity (Certificate of Deposit Account Registry Service) that assists in the placement of certificates of deposit, provided that the purchase of certificates of deposit do not, in total, exceed 30% of the City’s funds that may be invested for this purpose. The City shall choose a nationally or state chartered commercial bank in California as the “selected” depository institution to invest the funds. The selected depository institution may submit the funds to a CDARS for the benefit of the City’s account.

The full amount of the principal and interest that may be accrued during the maximum term of each certificate shall be insured by the FDIC. The maximum maturity does not exceed 5 years

10. Negotiable Certificates of Deposit (NCDs) issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that the purchase of City of Campbell, California
Investment Policy Date: September 1615, 20252026

8 certificates of deposit do not, in total, exceed 30% of the City’s funds that may be invested for this purpose. The amount of the NCD insured up to the FDIC limit does not require any credit ratings. Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO. The maximum maturity does not exceed 5 years and no more than 5% of the total portfolio may be invested in any single issuer.

11. State of California’s Local Agency Invest ment Fund (LAIF), pursuant to California Government Code Section 16429.1.

12. Mutual Funds registered under the Investment Company Act of 1940 that (1) are “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) invest only in the securities and obligations authorized in this policy and (3) have a rating of AAA by Standard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. No more than 10% of the City’s total portfolio may be invested in mutual funds of any one issuer, and the aggregate investment in mutual funds shall not exceed 10% of the City’s total portfolio. The combined aggregate investment in mutual funds and money market funds shall not exceed 20% of the total portfolio.

13. Money Market Mutual Funds registered under the Investment Company Act of 1940 that (1) are “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant daily net asset value per share of $1.00; (3) invest only in the securities and obligations authorized in this policy and (4) have a rating of at least two of the following: AAA by Standard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. No more than 20% of the City’s total portfolio may be invested in the shares of any on money market fund, and the combined aggregate investment in mutual funds and money market funds shall not exceed 20% of the total portfolio.

14. Municipal and State Obligations with a minimum long-term rating of A/A-1 or higher by Standard and Poor’s and not exceeding 30% of the portfolio and the maximum maturity does not exceed 5 years:
(a) Bonds Issued by the Local Agency (City of Campbell) including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.) (b) State Obligations including registered treasury notes or bonds of this State and any of the other 49 states in addition to California, including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of the any of the other 49 United States, in addition to California.
(c) California Local Agency obligations including bonds, notes, warrants, or other evidence of indebtedness of any local agency within this state, including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the any of the local agency.
(d) No more than 5% of the portfolio may be invested in any single issuer.

15. Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations from Issuers Not Defined in sections 1, 2 and 3 of the Authorized Securities and Transactions Section of This Policy, provided that:

City of Campbell, California
Investment Policy Date: September 1615, 20252026

9 (a) The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
(b) No more than 20% of the total portfolio may be invested in these securities. (c) No more than 5% of the portfolio may be invested in any single Asset-Backed security issuer.
(d) The maximum legal final maturity does not exceed five (5) years.

16. Supranationals, provided that:
(a) Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
(b) The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
(c) No more than 30% of the total portfolio may be invested in these securities. (d) No more than 10% of the portfolio may be invested in any single issuer. (e) The maximum maturity does not exceed five (5) years.

It is the intent of the City that the foregoing list of authorized securities and transactions is strictly interpreted. Any deviation from this list must be preapproved by the City Council writing.

17. Shares of Beneficial Interest Issued by a Joint Powers Authority (JPA) organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority and be rated AAA or equivalent. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(a) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(b) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (c) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

18. Prohibited Investment Vehicles and Practices
a. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. b. In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. c. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 20262031, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.
d. Purchasing or selling securities on margin is prohibited. e. The purchase of foreign currency denominated securities is prohibited. f. Agencies that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested.
g. The purchase of a security with a forward settlement date exceeding 45 days from the time of investment is prohibited.

City of Campbell, California
Investment Policy Date: September 1615, 20252026

10 VI. PORTFOLIO MATURITIES AND LIQUIDITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The City will not invest in securities maturing more than five years from the date of settlement, unless the City Council has granted authority to make such an investment at least three months prior to the date of investment. The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

VII. MONITORING AND REPORTING
A. The Finance Director shall routinely monitor the contents of the portfolio and shall file with the City Council the Assistant Finance Director's Investment Report at the first regularly scheduled City Council meeting after 45 days from the end of the quarter. The reports shall be prepared and submitted in accordance with California Government Code Section 53646 and shall include the following on all invested monies:
 Type of Investment and Issuer
 Beginning Balances
 Purchases During Quarter
 Monthly transactions including all Maturities and Sales During the Quarter  Ending Balances
 Maturity Date
 Weighted Average Final Maturity
 Call Provisions (if any)
 Interest Rate
 Weighted Average Yield
 Face Value or Purchase Cost
 Market Value including source
 Interest Earned During Quarter
 Interest Earned to Maturity
 Cash Flow Projection for the Following Quarter
 Summary of Cash Invested to Total Cash Balances
 Comparative Statistics by Fiscal Year
 Reconciliation of Cash & Investments to General Ledger Balances  Investments under the Management of Contracted Parties  Statement of Compliance with the Investment Policy
 Statement of Ability to Meet Obligations of Next Six Months VIII. SELECTION OF BROKER/DEALERS
The City shall transact business with securities broker/dealers after careful review of their qualifications and creditworthiness. In selecting broker /dealers, the Finance Director or designated staff member shall select broker/dealers representing primary dealers in government securities that have established offices and order desks within the State of California, or with such firms that have a primary dealer within their holding company structure.

Exceptions to this rule will be made only upon the joint written authorization of the Finance Director and City Manager. Staff shall investigate broker/dealers wishing to do business with the City to determine if they are adequately capitalized, are reputable, have pending legal action against the firm or the individual broker, have established offices and order desks within the State of California, and make markets in the securities appropriate to the City’s needs.

City of Campbell, California
Investment Policy Date: September 1615, 20252026

11 Before accepting funds or engaging in investment transactions with the City, the supervising officer at each authorized broker/dealer shall submit and annually update a City approved Broker/Dealer Information Request form that includes the firm’s most recent audited financial statement. The Finance Director, or his or her designee, shall maintain a list of approved broker/dealers. Broker/dealers shall attest in writing that they have received and reviewed a copy of this Investment Policy, and that they will comply with it and disclose potential conflicts or risks to public funds that might arise out of business transactions between the firm and the City of Campbell. If the City has engaged the services of an outside professional investment advisor, the investment advisor may use its own list of authorized broker-dealers to conduct transactions on behalf of the City.

IX. DELIVERY, SAFEKEEPIN G AND COLLATERALIZATION
A. Delivery:

1. All investment transactions shall be conducted on a delivery-versus-payment (DVP) basis.

B. Safekeeping:

1. The City shall contract with a bank or banks for the safekeeping of securities which are owned by the City as a part of the investment portfolio. Staff shall periodically review the performance and pricing of the third-party, safekeeping agent services.

2. All investment securities (except the collateral for certificates of deposit in banks, and/or savings and loans) purchased by the City shall be held in third-party safekeeping by an institution designated as primary agent. The primary agent shall issue a safekeeping receipt to the City listing the specific instrument, rate, maturity and other pertinent information, and shall provide monthly reports of activity and ending balances for all securities held on behalf of the City.

C. Collateralization:

1. Certificates of Deposit (CDs). The Agency shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

2. Collateralization of Bank Deposits. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The Agency shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

3. Repurchase Agreements. The Agency requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:
a. The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market City of Campbell, California
Investment Policy Date: September 1615, 20252026

12 Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities. b. Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above
c. The Agency shall receive monthly statements of collateral.

X. DIVERSIFICATION AND ELIGIBLE SECURITIES
The City will diversify investment instruments to avoid incurring unreasonable risks in overinvesting in specific instruments, individual financial institutions or maturities. The following portfolio maximums shall apply:

If the credit ratings of any security owned by the City are downgraded to a level below the quality required by this investment policy, it will be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.

If a security is downgraded, the Finance Director will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors.

If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported quarterly to the City Council.

City of Campbell, California
Investment Policy Date: September 1615, 20252026

13 EXHIBIT A

GLOSSARY
Asset Backed Securities. - Securities that are supported by pools of assets, such as installment loans or leases, or by pools of revolving lines of credits. Asset-backed securities are structured as trusts in order to perfect a security interest in the underlying assets.

Banker's Acceptance. This is a negotiable time draft (bill of exchange) with a maturity of six months or less drawn on and accepted by a commercial bank. Banker's Acceptances are usually created to finance the import and export of goods, the shipment of goods within the United States and storage of readily marketable commodities. Per State Law, cities may not invest more than 30% of idle cash in Banker's Acceptances.

Certificate of Deposit (CD's). - is a receipt for funds deposited in a bank or savings and loan association for a specified period of time at a specified rate of interest. The first $250,000 of a certificate of deposit is guaranteed by the Federal Deposit Insurance Corporation (FDIC). CD's with a face value in excess of $250,000 can be collater alized by Treasury Department Securities, which must be at least 110% of the face value of the CD's, in excess of the first $250,000, or by first mortgage loans which must be at least 150% of the face value of the CD balance in excess of the first $250,000.

Commercial Paper. - Notes are unsecured promissory notes of industrial corporations, utilities and bank holding companies. State law limits a city to investments in United States corporations having assets in excess of five hundred million dollars with an "A" or higher rating. Per State law, cities with less than $100 million in assets under management may not invest more than 25% of idle cash in commercial paper.

Delivery Versus Payment (DVP). - Delivery versus payment (DVP) is a securities industry settlement method that guarantees the transfer of securities only happens after payment has been made. DVP stipulates that the buyer's cash payment for securities must be made prior to or at the same time as the delivery of the security.

Local Agency Investment Fund (L.A.I.F.). - The L.A.I.F. was established by the state of California to enable treasurers to place funds in a pool for investments. There currently is a limitation of $75 million per agency subject to a maximum of 15 total transactions per month. The City of Campbell uses this fund when interest rates are declining as well as for short-term investments and liquidity.

Medium Term Notes. - are corporate or depository institution debt securities meeting certain minimum quality standards (as specified in the California Government Code) with a remaining maturity of five years or less.

Money Market Mutual Fund. - Mutual funds that invest solely in money market instruments (short- term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repos and federal funds).

Mortgage Backed Securities. - Mortgage-backed securities (MBS) are created when a mortgagee or a purchaser of residential real estate mortgages creates a pool of mortgages and markets undivided interests or participations in the pool. MBS owners receive a prorata share of the interest and principal cash flows (net of fees) that are “passed th rough” from the pool of mortgages. MBS are complex securities whose cash flow is determined by the characteristics of the mortgages that are pooled together. Investors in MBS face prepayment risk associated with the option of the underlying mortgagors to pre-pay or payoff their mortgage. Most MBS are issued and/or guaranteed by federal City of Campbell, California
Investment Policy Date: September 1615, 20252026

14 agencies and instrumentalities (e.g., Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC)).

Mortgage Pass-Through Obligations. - Securities that are created when residential mortgages (or other mortgages) are pooled together and undivided interests or participations in the stream of revenues associated with the mortgages are sold.

Mutual Fund. - An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments. Mutual funds are regulated by the Investment Company Act of 1940 and must abide by strict Securities and Exchange Commission (SEC) disclosure guidelines.

Nationally Recognized Statistical Ratings Organization. - A nationally recognized statistical ratings organization (NRSRO) is a credit rating agency that provides an assessment of the creditworthiness of a firm or financial instrument(s) that is r egistered and approved by the Securities and Exchange Commission (SEC). Not all credit rating organizations are NRSROs Repurchase Agreements (REPOS). - is a contractual arrangement between a financial institution, or dealer, and an investor. This agreement normally can run for one or more days. The investor puts up his funds for a certain number of days at a stated yield. In return, he takes a given block of securities as collateral. At maturity, the securities are repurchased and the funds repaid plus interest.

Supranationals. - International institutions formed by two or more governments that transcend boundaries to pursue mutually beneficial economic or social goals. There are three supranational institutions that issue obligations that are eligible investments for California local agencies: the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and InterAmerican Development Bank (IADB).

U.S. Treasury Bills. Commonly referred to as T-Bills, these are short-term marketable securities sold as obligations of the U.S. Government. T-Bills do not accrue interest but are sold at a discount to pay face value at maturity.

U.S. Treasury Notes. These are marketable, interest-bearing securities sold as obligations of the U.S. Government with original maturities of one to ten years. Interest is paid semi- annually.

U.S. Treasury Bonds. These are the same as U.S. Treasury Notes except they have original maturities of ten years or longer.

U.S. Government Agency Issues. Are securities that are unconditionally backed by the full faith and credit of the United States, including: Government National Mortgage Association (GNMA), Farmers Home Administration (FmHA), Small Business Administration (SBA), General Services Administration (GSA), Federal Housing Administration (FHA) and Housing and Urban Development (HUD).

U.S. Government Instrumentality Issues. Are government sponsored enterprises that are backed by the creditworthiness of the issuing agency, not the full faith and credit of the U.S. government. They do carry an implied guarantee of government assistance to the organization should it encounter financial difficulties. Issuers include: Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB), Federal Farm Credit Banks (FFCB) and Federal Home Loan Mortgage Corporation (FHLMC).

City of Campbell, California
Investment Policy Date: September 15, 2026

1. General Fund

2. Special Revenue F unds

3. Debt Service Funds

4. Capital Projects F unds

5. Internal Service F unds

6. Trust and Agency Funds
B. The policy does not cover funds held by the Public Employees Retirement System nor funds of the Deferred Compensation program.

D. The City shall ensure the safety of invested funds by limiting credit and interest rate risks. The three primary objectives of the City's Investment Policy in order of priority are:

City of Campbell, California
Investment Policy Date: September 15, 2026

2 1. Safety: Safety of principal is the foremost objective of the City of Campbell.

2. Liquidity: Liquidity is the second most important objective of the City's Policy.

IV. STRUCTURE AND RESPONSIBILITY
A. DELEGATION OF AUTHORITY:

B. POLICY REVIEW:

1. This Investment Policy shall be reviewed and approved annually as recommended by California Government Code Section 53600 et. seq.

C. RESPONSIBILITIES:

City of Campbell, California
Investment Policy Date: September 15, 2026

Such a transaction shall be reviewed, approved and verified in advance by the Finance Director, and shall be reported in the Quarterly Investment Report to Council.

D. Prudence:

E. Ethics and Conflicts of Interest:

Conflict with State Statutes or Regulations

1. In the instance of any conflict between the City of Campbell Investment Policy and Government Code Section 53600 et seq, the more stringent requirement shall apply.

The City has further restricted the eligible types of securities and transactions to the following:

1. United States Treasury bills, notes, bonds, or strips with a final maturity not exceeding five years from the date of purchase.

The Finance Director shall maintain a copy of the City's approved Master Repurchase Agreement along with a list of the broker/dealers that have executed a Master Repurchase Agreement with the City.

5. Prime Commercial Paper with a maturity not exceeding 397 days from the date of purchase with the highest ranking or of the highest letter and number rating as provided for by a Nationally Recognized Statistical Ratings Organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either sub-paragraph a.

City of Campbell, California
Investment Policy Date: September 15, 2026

7 or sub-paragraph b. below:
a. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of five hundred million dollars ($500,000,000) and (3) have debt other than commercial paper, if any, that is rated “A” or higher by a NRSRO.
b. The entity shall (1) be organized within the United States as a special purpose corporation,
trust, or limited liability company, (2) have program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated “A-1” or higher, or the equivalent, by a NRSRO.

The full amount of the principal and interest that may be accrued during the maximum term of each certificate shall be insured by the FDIC. The maximum maturity does not exceed 5 years

11. State of California’s Local Agency Invest ment Fund (LAIF), pursuant to California Government Code Section 16429.1.

City of Campbell, California
Investment Policy Date: September 15, 2026

It is the intent of the City that the foregoing list of authorized securities and transactions is strictly interpreted. Any deviation from this list must be preapproved by the City Council writing.

18. Prohibited Investment Vehicles and Practices
a. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. b. In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. c. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2031, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.
d. Purchasing or selling securities on margin is prohibited. e. The purchase of foreign currency denominated securities is prohibited. f. Agencies that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested.
g. The purchase of a security with a forward settlement date exceeding 45 days from the time of investment is prohibited.

City of Campbell, California
Investment Policy Date: September 15, 2026

IX. DELIVERY, SAFEKEEPIN G AND COLLATERALIZATION
A. Delivery:

1. All investment transactions shall be conducted on a delivery-versus-payment (DVP) basis.

B. Safekeeping:

C. Collateralization:

If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported quarterly to the City Council.

City of Campbell, California
Investment Policy Date: September 15, 2026

13 EXHIBIT A

14 agencies and instrumentalities (e.g., Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC)).

U.S. Treasury Notes. These are marketable, interest-bearing securities sold as obligations of the U.S. Government with original maturities of one to ten years. Interest is paid semi- annually.

U.S. Treasury Bonds. These are the same as U.S. Treasury Notes except they have original maturities of ten years or longer.

To: Finance Sub-Committee

Date: August 24, 2026
From: Will Fuentes, Finance Director

Subject: Investment Strategy for FY 2026-27

BACKGROUND

The Investment Policy establishes procedures and guidelines by which the City’s surplus funds can be managed in a prudent and fiscally sound manner. The policy encompasses those funds over which the City exercises fiscal control and prioritizes the objectives of public funds management as safety, liquidity and yield, in that order and consistent with guidance provided by the Government Finance Officers Association (GFOA). It also stipulates allowable and unallowable investment alternatives as well as establishes parameters for selecting broker/dealers and institutions with which the City may do business.

California Government Code Section 53646 (a) (2) recommends that on an annual basis, the City Investment Policy be submitted to its legislative body and any oversight committee for consideration at a public meeting. The Finance S ub-Committee is the oversight committee responsible for review of the Investment Policy. In addition to review of any proposed revisions to the Investment Policy, staff and the City’s investment advisors (Chandler) have prepared a report summarizing the economic conditions for the quarter ending June 30, 202 6, the City’s portfolio performance over the same period, and the recommended Investment Strategy for managing the City’s available invested funds in FY 2026-27.

INVESTMENT OBJECTIVES AND OVERVIEW
The City’s policy is to invest public funds in a prudent manner, provide for maximum security while meeting daily cash flow needs and comply with applicable statutes. Chief among the objectives outlined in the Investment Policy are safety, liquidity and return , in that specific order and again consistent with GFOA guidance. Within this framework , a number of investment choices are provided to allow flexibility in meeting these objectives. The City and its investment advisors continue to take a conservative approach with its investments and that is reflected in the currently recommended investment policy.

As a means to implement the policy, it is important to develop a strategy for achieving the stated objectives. Likewise, the strategy should be reviewed periodically to determine whether it needs to be modified in light of changing economic and financial conditions. This document will serve as the City’s investment strategy for the current fiscal year (FY 2026- 27) and will be reviewed annually in conjunction with the review of the City’s I nvestment Policy or sooner if conditions warrant.

CITY OF CAMPBELL MEMORANDUM
Finance Department

Investment Strategy FY 2026-27

Page 2 ends

SUMMARY OF CURRENT STRATEGY AND RECOMMENDATIONS
Since July 1, 2024, City staff has partnered with Chandler Asset Management to assist with the investment of City funds. As part of th is partnership, City staff continues to manage liquid funds to meet near -term expenditures and Chandler manages longer-term funds not needed for immediate use. Chandler though also provides expertise and support to City staff as needed regarding the optimal investment of near-term liquid funds.

In regard to Investment Strategy for FY 2026 -27, Chandler and City staff continue to recommend the use of ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index as the target benchmark to invest funds and to evaluate Chandler’s performance against.

Chandler will invest funds in accordance with the City's Investment Policy, and based on market conditions, seek to maximize return in comparison to the selected benchmark while also prioritizing safety and liquidity.

Table 1 below provides of summary of City Investments by institution as of June 30, 2026 as shown in the Quarterly Investment Report provided to City Council on August 3, 2026:

Table 1 – City Investments by Institution as of June 30, 2026:

Institution Market Value
Rate of Return
(QTR)
Rate of Return
(ANNUAL)
Benchmark
(QTR)
LAIF Main Acct $17,417,023 3.812% 4.005% N/A
LAIF Meas O 3,168,947 3.812% 4.005% N/A
CAMP Main Acct 18,516,267 3.777% 4.024% N/A
CAMP Meas K 7,450,465 3.777% 4.024%
BNY / Chandler 21,301,734 4.197% 3.962% 4.16%
BNY / LRB TARB 2,701 N/A N/A N/A
TOTAL $67,857,137
As shown above, the City maintains good liquidity in its Local Agency Investment Fund (LAIF) accounts and its California Asset Management Program (CAMP) accounts. Both are short-term investment tools and provide the City with $46.6 million of liquidity. When soon to be spent down Measure O funds of $3.2 million are excluded, the City has remaining regular liquidity of $43.4 million for ongoing operational needs. However, since the Measure K balance of $7.5 million is currently tied up in litigation and cannot be utilized, this drops liquidity further to $35.9 million. This is still a strong position, but would be much stronger if continually accruing Measure K funds could be utilized.

As in the past, staff continues to recommend that the City maintain sufficient liquidity to cover daily operating cash flows for a minimum of 3 months to provide a reasonable cushion for fluctuations in the portfolio balance and for unforeseen emergencies. Average monthly disbursements over the last fiscal year (FY 2025-26), exclusive of Measure O expenditures Investment Strategy FY 2026-27

Page 3 ends

were approximately $7.3 million. Therefore, staff recommends retaining a liquidity target of $21.9 million (3 months) in the Local Agency Investment Fund (LAIF), the California Asset Management Program (CAMP), and/or similar secure, stable, and liquid pooled investment funds as allowed by the City’s Investment Policy such CalFIT (a new liquidity pool recently opened by Chandler Asset Management ). At the current amount of $35.9 million, as previously stated and exclusive or Measure O and Measure K monies , the City is currently $14.0 million over its liquidity target. And if Measure K monies become available to use in the future, the City will have more excess liquidity to invest in both the short-term and long- term. As such, staff will look to contribute additional funds into the City’s Chandler managed portfolio as appropriate investment options become available. As of last quarter , Chandler is currently earning slightly more than both LAIF and CAMP as shown in Table 1, the investment returns it provides are locked in for a longer term of up to 5 years, and it is beating the performance benchmark agreed to. The Chandler account also provides the City with diversification, safety, consistent returns, and a hedge against LAI F, CAMP, and other liquidity pools once short-term interest rates return to normal levels once again. While LAIF and CAMP interest rates have been elevated for several years, given historical trends, they will likely drop and fall further below the rates earned by Chandler. LAIF and CAMP typically hover in the 1% to 2% range long-term.

ECONOMIC UPDATE AND OUTLOOOK
Shown as Attachment A, Chandler has prepared a comprehensive Economic Update for the quarter ending June 30, 2026 which covers the following topics on a national level:
• Significant Economic Highlights
• Employment
• Job Openings & Labor Turnover
• Energy Markets
• Inflation
• Consumer Spending and Confidence
• Leading Economic Indicators
• Housing
• Purchasing Managers Index
• Manufacturing
• Gross Domestic Product (GDP)
• Federal Reserve
• Bond Yields
Additionally, as it relates to employment in California, the state lost 2,900 nonfarm payroll jobs in June 2026. Statewide unemployment was 5.2% in June 2026; down from 5.3% in May 2026 and 5.5% in June 2025. In Santa Clara County, the unemployment rate was 4.0% in June 2026; up from 3.4% in May 2026 and down from 4.4% in June 2025. And in Campbell, the unemployment rate was 4.0% in June 2026; up from 3.4% in May 2026 and down from 4.4% in June 2025. At its pandemic high point in April 2020, the Campbell unemployment rate reached 11.2%.

RECOMMENDATION
Investment Strategy FY 2026-27

Page 4 ends

It is recommended that the Finance sub- Committee approve the proposed strategy for FY 2026-27.

Distribution:

Daniel E. Furtado, Mayor
Sergio Lopez, Council Member
Brian Loventhal, City Manager

INVESTMENT REPORT
City of Campbell | As of June 30, 2026
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
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.

TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

PORTFOLIO HOLDINGS

TRANSACTIONS
1 ECONOMIC UPDATE
2 ▪
▪
▪
Energy prices and inflation remained the primary drivers of the macro backdrop as the U.S.-Israel-Iran conflict entered its third month, disrupting global oil supply. Headline CPI accelerated at the fastest pace in more than three years, reflecting volatility in the energy component. Crude oil, however, retraced roughly 20% from its May–early June peak as diplomatic progress between the United States and Iran pointed to a potential framework for de-escalation. The labor market remained resilient, with continued payroll growth and subdued jobless claims. Risk assets held firm, as equities hovered near record highs and credit spreads remained historically tight amid broadly better-than-expected corporate earnings. Taken together, the current market environment has further constrained the case for near-term monetary policy easing, leading the Chandler team to push out its expected timing for rate cuts beyond the six-month investment horizon.

The Federal Reserve’s June FOMC meeting ended with policymakers unanimously holding the target range at 3.50%–3.75%, a notable shift from the8–4 split at April’s meeting, which marked JeromePowell’s final session as Chair. Under new Chair Kevin Warsh, sworn in on May 22, the Committee released an unusually concise statement that referenced Middle East tensions and energy supply disruptions while removing prior forward guidance that had suggested a bias toward rate cuts. Updated projections leaned more hawkish, with 9 of 18 officials expecting at least one rate hike this year and 6 anticipating multiple increases. The shift signals that restoring price stability has reemerged as the central focus of monetary policy deliberations.

The Treasury yield curve flattened modestly in June as short-term yields responded to a more hawkish shift in Federal Reserve guidance.

The 2-year yield rose to 4.15% from 3.98% the prior month, while the 10-year yield edged down slightly to 4.44% from 4.45%. As a result, the 2s/10s spread narrowed to 29 basis points, down from roughly 47 basis points a month earlier and significantly below the 69 basis point spread at the start of the year. Meanwhile, the 3-month/10-year spread remained positive at 64 basis points. Front-end rates absorbed the bulk of the Fed’s updated rate outlook, while longer maturities were partly anchored by a late-month decline in oil prices.

ECONOMIC UPDATE
3 -400
-200
0 200
400
600
800
1,000MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
Nonfarm payrolls increased by just 57,000 in June, well below the 113,000 consensus and marking a sharp slowdown from May’s pace. The unemployment rate edged down to 4.2%, though the decline was driven by a drop in labor force participation to 61.5%, its lowest level since March 2021. Revisions further weakened the report’s signal. April payrolls were revised down by 31,000 to 148,000, while May was lowered by 43,000 to 129,000, resulting in a combined two-month downward revision of 74,000.

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
4 0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In Thousands (000's)
Job openings were essentially unchanged at 7.6 million in May, remaining elevated by historical standards even as hiring momentum moderates. Gains in wholesale trade and accommodation and food services were offsetby declines in health care and social assistance, as well as finance and insurance. April openings were revised down by 33,000 to 7.6 million, while hires were revised up by 99,000, highlighting ongoing churn but a broadly stable labor market backdrop.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
5 Source: Bloomberg Indices Source: Bloomberg Indices

ENERGY MARKETS
Crude oil prices declined sharply in June as supply disruptions tied to the Middle East conflict began to ease. Tanker traffic through the Strait of Hormuz normalized, and signs of progress in U.S.–Iran negotiations helped unwind the geopolitical risk premium that had driven prices higher earlier in the year. West Texas Intermediate settled near $69.37 per barrel on June 30, while Brent crude closed around $72.96, both well below their recent peaks. Brent’s 21% monthly decline marked its steepest drop since March 2020, while WTI fell more than 20%, its largest monthly loss since late 2021. Beyond crude, broader energy markets also softened. Refined product cracks narrowed as gasoline and diesel demand showed signs of seasonal moderation, while U.S. natural gas prices remained range-bound amid ample storage and steady production. Taken together, the retracement in oil and broader energy prices reflects a rapid compression in geopolitical risk premia and improved near-term supply visibility, even as underlying structural risks in the region remain unresolved.

2.00 2.50

3.00 3.50

4.00 4.50

5.00 5.50

6.00 6.50
US Fuel Prices
Average Retail Price US Diesel
Average Retail Price US Gas
($) Per Gallon
40 60
80 100
120
140
160
Oil Prices
West Texas Intermediate (WTI Spot Cushing)
Dated Brent (Global Spot)
Price Per Barrel (WTI Spot)
6 0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY %
Change
PCE Core Deflator YOY %
Change
Fed Target
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change
Inflation firmed in May, with the Personal Consumption Expenditures (PCE) price index rising 0.4% on the month and 4.1% year over year, up from 3.8% in April and marking the highest annual rate of the current cycle. Core PCE, which excludes food and energy, increased 0.3% in May and 3.4% over the year. Energy prices remained the primary driverof the headline acceleration, reflecting supply disruptions tied to the Iranian conflict. A similar pattern was evident in the headline Consumer Price Index (CPI), which rose 0.5% on the month and 4.2% year over year, the fastest annual pace since 2023. Energy prices climbed 3.9% in May and 23.5% from a year earlier, largely due to crude oil reaching a four-year high. In contrast, core CPI rose a more modest 0.2% on the month and 2.9% year over year, indicating that inflation pressures remain concentrated in energy rather than broad-based.

Source: US Department of Labor Source: US Department of Commerce

INFLATION
7 0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%
Retail Sales YOY % Change
YOY (%) Change
Retail sales rose a robust 0.9% in May to $763.7 billion, nearly double the pace economists had penciled in and an acceleration from April's downwardly revised 0.4% gain. The closely watched control group, which feeds directly into gross domestic product calculations, advanced

0.7%, pointing to durable underlying demand. Gasoline station receipts roseas energy prices stayed high, while auto sales rebounded after an April pullback. The Conference Board's Consumer Confidence Index tickedup 0.6 points to 91.2 in June, though the improvement masked a further deterioration in how households view the job market, with the share calling jobs ‘hard-to-get’ climbing to a five year high.

Spending has proven more resilient than sentiment across recent months. 0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
8 -25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) edged up 0.1% in May to 99.3, following a revised 0.2% increase in April. Despite the monthly gains, the LEI’s six- and twelve-month growth rates remained negative at -0.6% and -1.5%, respectively. The advance was driven primarily by financial components, including equity prices and the interest rate spread, while consumer expectations continuedto weigh on the index. The Chicago Fed National Activity Index fell to -0.10 in May from an upwardly revised 0.19 in April. Production-related and employment-related indicators each subtracted from the index, while the sales, orders, and inventories category made a small positive contribution.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
9 0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts declined sharply in May to a seasonally adjusted annual rate of 1,177,000, a 15.4% drop from a downwardly revised 1,392,000 in April. The pullback was driven primarily by multifamily construction, while single-family starts edged down a more modest

1.9% to 882,000; total multifamily starts came in at 295,000 units. The S&P CoreLogic Case-Shiller 20-City Composite rose 1.1% year over year in April, marking its first pickup since November 2025, following an upwardly revised 0.9% gain in March. Freddie Mac’s average 30- year fixed mortgage rate increased to 6.44% in May from 6.33% in April, reinforcing ongoing affordability constraints for prospective buyers.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

HOUSING
10 40
45 50
55 60
65 70
Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
Manufacturing activity cooled slightly in June, with the Institute for Supply Management's Manufacturing Index easing to 53.3%, down 0.7 percentage point from May but still marking a sixth consecutive month of expansion. Services activity also moderated, as the ISM Services Index eased to 54.0% from 54.5%, a twenty-fourth consecutive monthin expansion territory. Business activity and new orders both slowed, though the employment component jumpedto 51.2% from 47.9%, its strongest reading since late 2021 and the first expansion in services hiring in four months.

Source: Institute for Supply Management

PURCHASING MANAGERS INDEX (PMI)
11 Components of GDP 6/25 9/25 12/25 3/26

1.7% 2.3% 1.3% 0.4%
-2.7% 0.0% 0.4% 1.4%

4.8% 1.6% -0.2% -0.4%
-0.4% 0.2% -1.2% 0.6%

0.3% 0.2% 0.2% 0.2%

3.8% 4.4% 0.5% 2.1%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
State and Local (Consumption and Gross
Investment)
-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce Real gross domestic product increased at an annualized rate of 2.1% in the first quarter of 2026, according to the Bureau of Economic Analysis’ third estimate, up from 1.6%in the prior estimate andan acceleration from 0.5% in the fourth quarterof 2025. The 0.5 percentage point upward revision was driven primarily by a downward revision to imports—which subtract from GDP—partly offset by a downward revision to consumer spending.

GROSS DOMESTIC PRODUCT (GDP)
12 Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Open Market Committee (FOMC) held the target range for the federal funds rate at 3.50% to 3.75% at its June 16–17 meeting, with a unanimous 12–0 vote. This marked a notable shift from the Aprilmeeting—Jerome Powell’slast as chair—which saw four dissents in an 8–4 decision. The return to consensus under Chair Kevin Warsh signals a clear change in tone. Minutes from the June meeting are scheduled for release in early July. The June Summaryof Economic Projections reflected a more hawkish outlook. The median projection for the federal funds rate at year-end 2026 rose to 3.8%, up from 3.4%in March, before easing to 3.6% in 2027 and 3.4% in 2028. Officials also revised their inflation forecasts, with headline PCE projected at 3.6% in 2026 (from 2.7%) and core PCE at 3.3%. By contrast, median projections for real GDP growth and the unemployment rate—2.2% and 4.3%, respectively—were little changed.

FEDERAL RESERVE

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Yield (%)
13 Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%
US Treasury Yield Curve
Jun-26
Mar-26
Jun-25
Yield (%)
Treasury yields ended June mixed, with a modest flattening across the curve as markets digested a more hawkish Federal Reserve signal.

The 2-year yield rose to 4.15% from 3.98% at the end of May, while the 10-year yield edged down to 4.44% from 4.45%. The 2s/10s spread narrowedto 29 basis points, down from 47 basis points a month earlier. The 3-month/10-year spread remained positive at roughly 64 basis points at month-end. Relativeto the 69 basis point spread at the start of 2026, the curve has flattened materially year to date, reflecting a repricing higher in front-end rates as expectations shift toward the possibility of further Fed tightening rather than easing.

BOND YIELDS
14 ACCOUNT PROFILE
15 OBJECTIVES
Investment Objectives
Safety of principal is the foremost objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs.

Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.

Strategy
In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds. 16 PORTFOLIO CHARACTERISTICS
City of Campbell | Account #11214 | As of June 30, 2026 Benchmark* 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 2.64 3.05 3.08
Average Modified Duration 2.46 2.57 2.61
Average Purchase Yield 4.19% 4.18%
Average Market Yield 4.16% 4.33% 4.05%
Average Quality** AA+ AA+ AA
Total Market Value 21,502,725 21,422,002
*Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 17 SECTOR DISTRIBUTION
City of Campbell | Account #11214 | As of June 30, 2026 Sector as a Percentage of Market Value
Sector 06/30/2026 03/31/2026
US Treasury 43.88% 45.01%
Corporate 27.19% 27.31%
Agency CMBS 12.83% 10.85%
ABS 10.06% 9.07%
Agency 2.33% 2.34%
Supras 2.21% 2.24%
Muni Bonds 0.97% 0.98%
Money Mkt Fd 0.54% 0.56%
Comm Paper -- 1.64%
18 ISSUERS
City of Campbell | Account #11214 | As of June 30, 2026 Issuer Investment Type % Portfolio
United States US Treasury 43.88%
Federal Home Loan Mortgage Corp Agency CMBS 12.83%
Federal Home Loan Banks Agency 2.33%
International Bank for Recon and Dev Supras 2.21%
Toyota Motor Corporation Corporate 1.86%
American Express Credit Master Trust ABS 1.74%
Bank of America Corporation Corporate 1.30%
JPMorgan Chase & Co. Corporate 1.25%
GM Financial Auto Leasing Trust ABS 1.20%
Nat Rural Util Coop Fin Corp Corporate 1.18%
Caterpillar Inc. Corporate 1.18%
Prologis, Inc. Corporate 1.18%
Cisco Systems, Inc. Corporate 1.18%
Marsh & McLennan Companies, Inc. Corporate 1.17%
BMW Vehicle Owner Trust ABS 1.17%
Realty Income Corporation Corporate 1.15%
Meta Platforms, Inc. Corporate 1.15%
Duke Energy Corporation Corporate 1.10%
Eli Lilly and Company Corporate 1.10%
John Deere Owner Trust ABS 1.09%
PACCAR Inc Corporate 1.08%
Deere & Company Corporate 1.07%
BNY Mellon Corp Corporate 1.05%
State of California Muni Bonds 0.97%
U.S. Bancorp Corporate 0.94%
Alphabet Inc. Corporate 0.92%
Walmart Inc. Corporate 0.87%
Mastercard Incorporated Corporate 0.84%
State Street Corporation Corporate 0.82%
American Express Company Corporate 0.79%
19 ISSUERS
City of Campbell | Account #11214 | As of June 30, 2026 Issuer Investment Type % Portfolio
Honda Auto Receivables Owner Trust ABS 0.75%
Morgan Stanley Corporate 0.72%
Salesforce, Inc. Corporate 0.66%
Visa Inc. Corporate 0.65%
Toyota Auto Receivables Owner Trust ABS 0.64%
GM Financial Securitized Term ABS 0.64%
Abbvie Inc. Corporate 0.59%
Ford Credit Auto Owner Trust ABS 0.56%
Hyundai Motor Company ABS 0.56%
Mercedes-Benz Auto Receivables Trust ABS 0.54%
Money Market Fund Money Mkt Fd 0.54%
WF Card Issuance Trust ABS 0.52%
NVIDIA Corporation Corporate 0.51%
The Goldman Sachs Group, Inc. Corporate 0.49%
Merck & Co., Inc. Corporate 0.40%
Hyundai Auto Receivables Trust ABS 0.38%
Mercedes-Benz Auto Lease Trust ABS 0.28%
Cash Cash 0.00%
TOTAL 100.00%
20 QUALITY DISTRIBUTION
City of Campbell | Account #11214 | As of June 30, 2026 S&P Rating Moody’s Rating Fitch Rating
Rating 06/30/2026 03/31/2026
AAA 11.28% 10.20%
AA 64.98% 62.63%
A 19.22% 20.85%
BBB 0.49% 0.49%
A-1 -- 1.62%
NA 4.03% 4.19%
Rating 06/30/2026 03/31/2026
Aaa 9.21% 9.08%
Aa 68.68% 66.23%
A 17.89% 19.63%
P-1 -- 1.62%
NA 4.22% 3.44%
Rating 06/30/2026 03/31/2026
AAA 17.76% 15.16%
AA 54.53% 57.47%
A 9.45% 9.51%
NA 18.25% 17.86%
21 DURATION DISTRIBUTION
City of Campbell | Account #11214 | As of June 30, 2026 Date 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
06/30/2026 0.6% 0.0% 9.8% 20.4% 28.5% 34.1% 6.6% 0.0% 0.0% 03/31/2026 2.4% 0.0% 6.7% 22.6% 21.5% 36.1% 10.7% 0.0% 0.0% 22 INVESTMENT PERFORMANCE
City of Campbell | Account #11214 | As of June 30, 2026 Total Rate of Return: Inception | 03/01/2025
TOTAL RATE OF RETURN* 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception City of Campbell 0.38% 3.11% 3.89%
Benchmark 0.24% 2.71% 3.47%
*Periods over 1 year are annualized.

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 market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index 23 PORTFOLIO HOLDINGS
24 HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
891940AC2 TAOT 2023-A A3 4.63 09/15/2027 15,125.80 11/14/2024

4.63%
15,131.70
15,126.69
100.08

3.97%
15,138.26

31.13 0.07%

11.57 NA/AAA
AAA

1.21 0.12
362962AD4 GMALT 2025-2 A3 4.58
05/22/2028 95,000.00 05/20/2025

4.84%
94,998.42
94,999.00
100.23

4.29%
95,215.75
132.95

0.45%
216.75
NA/AAA
AAA

1.90 0.68
379965AD8 GMALT 2025-3 A3 4.17
08/21/2028 90,000.00 08/05/2025

4.18%
89,986.32
89,990.31

99.89 4.33%
89,896.68
114.68

0.42%
(93.63)
NA/AAA
AAA

2.14 0.94
47800RAD5 JDOT 2024 A3 4.96 11/15/2028 132,532.42 02/20/2025

4.63%
133,329.69
132,939.13
100.37

4.44%
133,026.37
292.16

0.62%

87.24 Aaa/NA
AAA

2.38 0.65
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 248,342.43 --

4.69%
250,922.87
249,733.23
100.51

4.33%
249,599.54
214.40

1.17%
(133.69)
Aaa/AAA
NA

2.66 0.56
36275AAD1 GMALT 2026-2 A3 4.3 03/20/2029 70,000.00 05/05/2026

4.40%
69,992.43
69,992.78

99.86 4.43%
69,898.92

75.25 0.33%
(93.86)
NA/AAA
AAA

2.72 1.57
89239TAD4 TAOT 2024-D A3 4.4 06/15/2029 57,127.36 10/10/2024

4.51%
57,124.17
57,125.34
100.05

4.37%
57,158.15
111.72

0.27%

32.82 Aaa/AAA
NA

2.96 0.72
02589BAE0 AMXCA 2024-3 A 4.65 07/15/2027 200,000.00 02/20/2025

4.57%
200,546.88
200,237.15
100.45

4.24%
200,908.20
413.33

0.94%
671.05
NA/AAA
AAA

1.04 0.99
34535VAD6 FORDO 2024-D A3 4.61
08/15/2029 120,000.00 11/19/2024

4.66%
119,996.15
119,997.46
100.30

4.32%
120,361.44
245.87

0.56%
363.98
Aaa/NA
AAA

3.13 0.90
38014AAD3 GMCAR 2024-4 A3 4.4
08/16/2029 55,565.55 10/08/2024

4.32%
55,554.84
55,558.62
100.08

4.31%
55,612.61
101.87

0.26%

53.99 Aaa/AAA
NA

3.13 0.62
47800DAD6 JDOT 2025 A3 4.23 09/17/2029 100,000.00 03/04/2025

5.09%
99,993.71
99,995.53

99.88 4.35%
99,876.10
188.00

0.47%
(119.43)
Aaa/NA
AAA

3.22 1.47
92970QAE5 WFCIT 2024-2 A 4.29 10/15/2029 110,000.00 10/17/2024

4.29%
109,983.65
109,989.18
100.06

4.28%
110,066.22
209.73

0.52%

77.04 Aaa/AAA
NA

3.29 1.23
89231HAD8 TAOT 2025-B A3 4.34 11/15/2029 65,000.00 04/24/2025

4.82%
64,996.28
64,997.24
100.04

4.35%
65,023.40
125.38

0.30%

26.16 NA/AAA
AAA

3.38 1.20
362955AD8 GMCAR 2025-1 A3 4.62
12/17/2029 80,000.00 01/09/2025

5.03%
79,994.06
79,995.82
100.26

4.32%
80,206.08
154.00

0.38%
210.26
Aaa/NA
AAA

3.47 0.73
58773DAD6 MBART 2025-1 A3 4.78
12/17/2029 115,000.00 01/14/2025

4.84%
114,975.54
114,982.70
100.44

4.32%
115,503.93
244.31

0.54%
521.23
Aaa/NA
AAA

3.47 0.86
44935XAD7 HART 2025-B A3 4.36 12/17/2029 80,000.00 06/03/2025

4.36%
79,992.78
79,994.46
100.03

4.37%
80,024.56
155.02

0.38%

30.10 NA/AAA
AAA

3.47 1.20
25 HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
58770YAD3 MBALT 2026-A A3 3.93
01/15/2030 60,000.00 01/13/2026

3.97%
59,988.10
59,989.42

99.21 4.40%
59,527.98
104.80

0.28%
(461.44)
Aaa/NA
AAA

3.54 1.78
02582JKP4 AMXCA 2025-2 A 4.28 04/15/2030 170,000.00 05/06/2025

4.28%
169,996.92
169,997.63

99.90 4.38%
169,828.64
323.38

0.80%
(168.99)
NA/AAA
AAA

3.79 1.69
43814YAD3 HAROT 2026-2 A3 4.3 11/15/2030 160,000.00 05/05/2026

3.02%
159,995.38
159,995.52

99.74 4.46%
159,590.88
305.78

0.75%
(404.64)
Aaa/AAA
NA

4.38 2.14
44935KAD5 HART 26B A3 4.81 02/18/2031 120,000.00 06/09/2026

4.86%
119,985.52
119,985.64
100.24

4.44%
120,288.48
224.47

0.56%
302.84
NA/AAA
AAA

4.64 2.20
2,147,485.41 100.14 2,146,752.19 10.06% 3.01
Total ABS 2,143,693.55 4.48% 2,145,622.83 4.35% 3,768.21 1,129.35 1.16 AGENCY
3130B7QM9 FEDERAL HOME LOAN BANKS 3.5
09/09/2027 500,000.00 09/23/2025

3.63%
498,795.00
499,266.89

99.27 4.13%
496,338.50
5,444.44

2.33%
(2,928.39)
Aa1/AA+
AA+

1.19 1.14
498,795.00 99.27 496,338.50 2.33% 1.19
Total Agency 500,000.00 3.63% 499,266.89 4.13% 5,444.44 (2,928.39) 1.14

AGENCY CMBS
3137FJEH8 FHMS K-081 A2 3.9 08/25/2028 250,000.00 11/21/2024

4.53%
244,335.94
246,788.68

98.79 4.41%
246,968.00
812.50

1.16%
179.32
Aa1/AA+
AAA

2.15 1.99
3137FJKE8 FHMS K-082 A2 3.92 09/25/2028 250,000.00 06/10/2025

4.27%
246,992.19
247,971.77

98.81 4.41%
247,029.00
816.67

1.16%
(942.77)
Aa1/AA+
AAA

2.24 2.02
3137FKSH0 FHMS K-086 A2 3.859 11/25/2028 150,000.00 09/18/2024

3.82%
150,005.86
150,003.34

98.57 4.43%
147,858.60
482.38

0.69%
(2,144.74)
Aaa/AA+
AA+

2.41 2.20
3137FLN91 FHMS K-091 A2 3.505 03/25/2029 300,000.00 11/14/2024

4.62%
287,074.22
291,945.16

97.59 4.43%
292,779.00
876.25

1.37%
833.84
Aa1/AAA
AA+

2.73 2.45
3137FMCR1 FHMS K-093 A2 2.982 05/25/2029 146,836.27 10/16/2024

4.15%
139,907.44
142,497.89

96.24 4.43%
141,313.61
364.89

0.66%
(1,184.28)
Aa1/AA+
AAA

2.90 2.54
3137FNAE0 FHMS K-095 A2 2.785 06/25/2029 250,000.00 03/13/2025

4.39%
234,707.03
239,386.52

95.51 4.43%
238,767.75
580.21

1.12%
(618.77)
Aa1/AA+
AAA

2.99 2.70
3137FPHK4 FHMS K-098 A2 2.425 08/25/2029 300,000.00 10/17/2024

4.26%
276,445.31
284,778.59

94.24 4.43%
282,714.90
606.25

1.33%
(2,063.69)
Aa1/AA+
AAA

3.15 2.88
26 HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137FRUJ8 FHMS K-105 A2 1.872 01/25/2030 275,000.00 03/17/2025

4.43%
244,868.16
252,935.49

91.68 4.44%
252,131.00
429.00

1.18%
(804.49)
Aa1/AA+
AAA

3.57 3.32
3137FWG79 FHMS K-115 A2 1.383 06/25/2030 250,000.00 06/17/2026

4.39%
222,822.27
222,973.36

88.98 4.45%
222,452.50
288.13

1.04%
(520.86)
Aa1/AA+
AAA

3.99 3.75
3137FX3Q9 FHMS K-117 A2 1.406 08/25/2030 250,000.00 06/03/2026

4.46%
221,455.08
221,888.44

88.69 4.46%
221,732.25
292.92

1.04%
(156.19)
Aa1/AA+
AAA

4.15 3.88
3137F62M8 FHMS K-118 A2 1.493 09/25/2030 250,000.00 01/29/2026

4.03%
223,632.81
226,025.53

88.83 4.46%
222,068.25
311.04

1.04%
(3,957.28)
Aa1/AA+
AAA

4.24 3.94
3137F83Q4 FHMS K-121 A2 1.547 10/25/2030 250,000.00 01/08/2026

4.00%
223,603.52
226,194.12

88.68 4.46%
221,701.50
322.29

1.04%
(4,492.62)
Aa1/AA+
AAA

4.32 4.06
2,715,849.83 93.87 2,737,516.36 12.83% 3.24
Total Agency CMBS 2,921,836.27 4.31% 2,753,388.90 4.44% 6,182.51 (15,872.54) 2.98 CASH
CCYUSD Receivable 509.68 -- 509.68
509.68

1.00 509.68

0.00 0.00%

0.00 Aaa/AAA
AAA

0.00 0.00
509.68 1.00 509.68 0.00% 0.00
Total Cash 509.68 509.68 0.00 0.00 0.00

CORPORATE
857477CP6 STATE STREET CORP 4.33
10/22/2027 175,000.00 11/07/2024

4.54%
173,976.25
174,546.06
100.02

4.31%
175,043.40
1,452.35

0.82%
497.34
Aa3/A
AA-

1.31 1.25
17275RBW1 CISCO SYSTEMS INC 4.55
02/24/2028 250,000.00 03/11/2025

4.32%
251,557.50
250,850.09
100.37

4.31%
250,916.25
4,012.85

1.18%

66.16 A1/AA-
NA

1.65 1.47
00287YDY2 ABBVIE INC 4.65 03/15/2028 125,000.00 02/18/2025

4.70%
124,833.75
124,906.94
100.43

4.38%
125,537.63
1,711.46

0.59%
630.68
A2/A-
NA

1.71 1.53
79466LAQ7 SALESFORCE INC 4.5 03/15/2028 140,000.00 03/12/2026

4.37%
140,339.50
140,286.45

99.87 4.57%
139,823.32
1,890.00

0.66%
(463.13)
A2/A+
NA

1.71 1.60
06406RBG1 BANK OF NEW YORK MELLON
CORP 3.992 06/13/2028 225,000.00 09/05/2024

4.31%
223,128.00
224,356.85

99.61 4.61%
224,118.00
449.10

1.05%
(238.85)
Aa3/A
AA-

1.96 0.92
46647PDG8 JPMORGAN CHASE & CO 4.851
07/25/2028 150,000.00 08/12/2024

4.62%
150,933.00
150,337.30
100.29

5.07%
150,435.60
3,153.15

0.71%

98.30 A1/A
AA-

2.07 1.01
27 HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
46647PEU6 JPMORGAN CHASE & CO 4.915
01/24/2029 115,000.00 01/16/2025

4.92%
115,000.00
115,000.00
100.49

4.53%
115,557.98
2,465.01

0.54%
557.98
A1/A
AA-

2.57 1.46
91159HJK7 US BANCORP 4.653 02/01/2029 200,000.00 09/05/2024

4.47%
201,116.00
200,520.74
100.07

4.71%
200,140.00
3,877.50

0.94%
(380.74)
A3/A
A+

2.59 1.48
756109CW2 REALTY INCOME CORP 3.95
02/01/2029 250,000.00 01/07/2026

4.01%
249,577.50
249,643.14

98.51 4.57%
246,277.50
4,114.58

1.15%
(3,365.64)
A3/A-
NA

2.59 2.39
24422EXT1 JOHN DEERE CAPITAL CORP 4.85
06/11/2029 225,000.00 08/12/2024

4.40%
229,338.00
227,647.58
101.25

4.39%
227,817.68
606.25

1.07%
170.09
A1/A
A+

2.95 2.71
025816EJ4 AMERICAN EXPRESS CO 4.351
07/20/2029 170,000.00 07/21/2025

4.35%
170,000.00
170,000.00

99.49 4.56%
169,130.62
3,307.97

0.79%
(869.38)
A2/A-
A

3.05 1.90
89236TMK8 TOYOTA MOTOR CREDIT CORP

4.55 08/09/2029 225,000.00 08/12/2024

4.49%
225,567.00
225,353.21

99.96 4.56%
224,912.93
4,038.13

1.05%
(440.28)
A1/A+
A+

3.11 2.82
532457CQ9 ELI LILLY AND CO 4.2 08/14/2029 235,000.00 08/12/2024

4.22%
234,769.70
234,856.22

99.48 4.38%
233,770.72
3,756.08

1.10%
(1,085.51)
Aa3/AA-
NA

3.12 2.85
26442CAY0 DUKE ENERGY CAROLINAS LLC

2.45 08/15/2029 250,000.00 12/18/2024

4.72%
226,517.50
234,239.10

93.99 4.54%
234,969.75
2,313.89

1.10%
730.65
Aa3/A
NA

3.13 2.93
61748UAK8 MORGAN STANLEY 4.133
10/18/2029 155,000.00 10/17/2025

4.25%
155,019.50
155,015.00

98.64 4.70%
152,884.25
1,299.02

0.72%
(2,130.75)
A1/A-
A+

3.30 2.15
38141GD27 GOLDMAN SACHS GROUP INC

4.153 10/21/2029 105,000.00 10/14/2025

4.37%
105,000.00
105,000.00

98.59 4.72%
103,519.50
847.90

0.49%
(1,480.50)
A2/BBB+
A

3.31 2.15
14913UAU4 CATERPILLAR FINANCIAL SERVICES
CORP 4.7 11/15/2029 250,000.00 11/12/2024

4.74%
249,592.50
249,724.84
100.77

4.45%
251,930.50
1,501.39

1.18%
2,205.66
A1/A
A+

3.38 3.07
89236TNA9 TOYOTA MOTOR CREDIT CORP

4.95 01/09/2030 170,000.00 01/06/2025

5.00%
169,636.20
169,743.39
101.15

4.59%
171,951.26
4,020.50

0.81%
2,207.87
A1/A+
A+

3.53 3.13
63743HFX5

NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 4.95
02/07/2030
250,000.00 02/20/2025

4.90%
250,550.00
250,397.14
101.05

4.63%
252,634.50
4,950.00

1.18%
2,237.36
A2/NA
A

3.61 3.14
571748CA8 MARSH & MCLENNAN
COMPANIES INC 4.65 03/15/2030 250,000.00 03/24/2025

4.67%
249,755.00
249,817.46

99.90 4.68%
249,747.25
3,422.92

1.17%
(70.21)
A3/A-
A-

3.71 3.32
931142FN8 WALMART INC 4.35 04/28/2030 185,000.00 04/23/2025

4.39%
184,679.95
184,755.14
100.19

4.29%
185,355.94
1,408.31

0.87%
600.80
Aa2/AA
AA

3.83 3.40
69371RT71 PACCAR FINANCIAL CORP 4.55
05/08/2030 230,000.00 05/05/2025

4.59%
229,643.50
229,725.30
100.63

4.37%
231,458.66
1,540.68

1.08%
1,733.36
A1/A+
NA

3.85 3.48
28 HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
30303MAB8 META PLATFORMS INC 4.2
11/15/2030 250,000.00 11/13/2025

4.16%
250,482.50
250,421.68

98.43 4.60%
246,078.25
1,341.67

1.15%
(4,343.43)
Aa3/AA-
NA

4.38 3.93
74340XCQ2 PROLOGIS LP 4.75 01/15/2031 250,000.00 01/14/2026

4.22%
255,812.50
255,271.73
100.51

4.62%
251,286.50
5,475.69

1.18%
(3,985.23)
A2/A
NA

4.54 3.89
92826CAZ5 VISA INC 4.1 02/12/2031 140,000.00 02/03/2026

4.13%
139,812.40
139,826.68

98.91 4.36%
138,474.98
2,216.28

0.65%
(1,351.70)
Aa3/AA-
NA

4.62 4.09
02079KBK2 ALPHABET INC 4.1 02/15/2031 200,000.00 02/12/2026

4.10%
200,011.33
200,010.43

98.26 4.52%
196,516.00
3,143.33

0.92%
(3,494.43)
Aa2/AA+
NA

4.63 4.10
06051GJB6 BANK OF AMERICA CORP 2.592
04/29/2031 300,000.00 05/20/2026

5.02%
275,859.00
276,407.66

92.28 5.02%
276,825.30
1,339.20

1.30%
417.64
A1/A-
AA-

4.83 3.56
58933YCK9 MERCK & CO INC 4.65 05/22/2031 85,000.00 05/18/2026

4.66%
84,947.30
84,948.45
100.16

4.61%
85,138.98
428.19

0.40%
190.52
Aa3/A+
NA

4.89 4.31
57636QBL7 MASTERCARD INC 4.6 06/08/2031 180,000.00 06/04/2026

4.62%
179,856.00
179,857.81

99.85 4.63%
179,723.34
529.00

0.84%
(134.47)
Aa3/A+
NA

4.94 4.36
67066GAR5 NVIDIA CORP 4.5 06/15/2031 110,000.00 06/15/2026

4.54%
109,791.00
109,792.49

99.65 4.58%
109,610.60
178.75

0.51%
(181.89)
Aa1/AA
NA

4.96 4.39
Total Corporate 5,845,000.00 4.49%
5,807,102.38
5,813,258.88

99.30 4.56%
5,801,587.17
70,791.16

27.19%
(11,671.72)

3.34 2.79

MONEY MARKET
FUND
X9USDDGCM BNY DREYFUS GVT CM INST 114,342.50 --

3.55%
114,342.50
114,342.50

1.00 3.55%
114,342.50

0.00 0.54%

0.00 Aaa/AAAm
NA

0.00 0.00
Total Money Market
Fund 114,342.50 3.55%
114,342.50
114,342.50

1.00 3.55%
114,342.50

0.00 0.54%

0.00 0.00

0.00 MUNICIPAL BONDS
13063EGT7 CALIFORNIA STATE 4.5 08/01/2029 205,000.00 10/30/2024

4.38%
206,080.35
205,703.79
100.46

4.34%
205,941.36
3,843.75

0.97%
237.57
Aa2/AA-
AA

3.09 2.80
Total Municipal
Bonds 205,000.00 4.38%
206,080.35
205,703.79
100.46

4.34%
205,941.36
3,843.75

0.97%
237.57

3.09 2.80

SUPRANATIONAL
29 HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
459058LN1

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 3.875 10/16/2029
350,000.00 12/13/2024

4.29%
343,689.50
345,698.85

99.00 4.20%
346,511.55
2,824.50

1.62%
812.70
Aaa/AAA
NA

3.30 3.03
459058LR2

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 4.125 03/20/2030
125,000.00 03/14/2025

4.20%
124,553.75
124,668.12

99.70 4.21%
124,623.50
1,446.61

0.58%
(44.62)
Aaa/AAA
NA

3.72 3.38
Total Supranational 475,000.00 4.27%
468,243.25
470,366.97

99.19 4.20%
471,135.05
4,271.11

2.21%
768.08

3.41 3.12

US TREASURY
91282CKV2 UNITED STATES TREASURY 4.625
06/15/2027 300,000.00 05/28/2026

3.90%
302,214.84
302,023.51
100.48

4.10%
301,443.90
606.56

1.41%
(579.61)
Aa1/AA+
AA+

0.96 0.93
91282CKZ3 UNITED STATES TREASURY 4.375
07/15/2027 375,000.00 08/08/2024

3.91%
379,804.69
376,701.85
100.25

4.13%
375,937.13
7,568.63

1.76%
(764.72)
Aa1/AA+
AA+

1.04 0.99
91282CFM8 UNITED STATES TREASURY 4.125
09/30/2027 350,000.00 10/31/2024

4.17%
349,521.48
349,794.73

99.97 4.14%
349,904.45
3,629.10

1.64%
109.72
Aa1/AA+
AA+

1.25 1.19
91282CPS4 UNITED STATES TREASURY 3.375
12/31/2027 300,000.00 05/28/2026

4.01%
297,105.47
297,269.88

98.86 4.17%
296,566.50

27.51 1.39%
(703.38)
Aa1/AA+
AA+

1.50 1.44
91282CGP0 UNITED STATES TREASURY 4.0
02/29/2028 375,000.00 08/08/2024

3.87%
376,552.73
375,726.76

99.73 4.16%
374,004.00
5,013.59

1.75%
(1,722.76)
Aa1/AA+
AA+

1.67 1.57
91282CHK0 UNITED STATES TREASURY 4.0
06/30/2028 350,000.00 08/20/2024

3.76%
353,007.81
351,558.34

99.69 4.16%
348,919.90

38.04 1.64%
(2,638.44)
Aa1/AA+
AA+

2.00 1.90
91282CNU1 UNITED STATES TREASURY 3.625
08/15/2028 250,000.00 01/29/2026

3.60%
250,156.25
250,130.66

98.91 4.17%
247,265.75
3,404.70

1.16%
(2,864.91)
Aa1/AA+
AA+

2.13 1.99
91282CJF9 UNITED STATES TREASURY 4.875
10/31/2028 375,000.00 08/08/2024

3.85%
389,765.63
383,157.44
101.54

4.17%
380,771.63
3,079.99

1.78%
(2,385.81)
Aa1/AA+
AA+

2.34 2.17
91282CPP0 UNITED STATES TREASURY 3.5
12/15/2028 250,000.00 01/29/2026

3.62%
249,169.92
249,290.08

98.45 4.17%
246,132.75
382.51

1.15%
(3,157.33)
Aa1/AA+
AA+

2.46 2.32
91282CKD2 UNITED STATES TREASURY 4.25
02/28/2029 375,000.00 11/26/2024

4.21%
375,585.94
375,366.87
100.21

4.17%
375,776.25
5,326.94

1.76%
409.38
Aa1/AA+
AA+

2.67 2.46
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 350,000.00 11/18/2024

4.31%
347,498.05
348,423.13

99.88 4.17%
349,589.80
3,629.10

1.64%
1,166.67
Aa1/AA+
AA+

2.75 2.55
91282CKP5 UNITED STATES TREASURY 4.625
04/30/2029 375,000.00 08/08/2024

3.84%
387,583.01
382,542.51
101.20

4.17%
379,482.38
2,922.04

1.78%
(3,060.14)
Aa1/AA+
AA+

2.83 2.61
30 HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CEV9 UNITED STATES TREASURY 3.25
06/30/2029 350,000.00 11/18/2024

4.31%
334,591.80
339,981.01

97.43 4.17%
341,017.60

30.91 1.60%
1,036.59
Aa1/AA+
AA+

3.00 2.82
91282CLC3 UNITED STATES TREASURY 4.0
07/31/2029 350,000.00 08/20/2024

3.70%
354,634.77
352,891.27

99.52 4.17%
348,331.90
5,839.78

1.63%
(4,559.37)
Aa1/AA+
AA+

3.08 2.82
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 400,000.00 --

3.60%
400,687.50
400,350.33

98.40 4.17%
393,593.60
4,846.47

1.84%
(6,756.73)
Aa1/AA+
AA+

3.17 2.92
91282CLN9 UNITED STATES TREASURY 3.5
09/30/2029 400,000.00 --

4.09%
389,617.18
393,076.14

97.97 4.17%
391,875.20
3,519.13

1.84%
(1,200.94)
Aa1/AA+
AA+

3.25 3.01
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 400,000.00 --

4.33%
396,388.68
397,543.66

99.84 4.18%
399,359.20
2,779.89

1.87%
1,815.54
Aa1/AA+
AA+

3.34 3.06
91282CMA6 UNITED STATES TREASURY 4.125
11/30/2029 400,000.00 12/11/2024

4.09%
400,546.88
400,376.24

99.84 4.17%
399,375.20
1,397.54

1.87%
(1,001.04)
Aa1/AA+
AA+

3.42 3.14
91282CMD0 UNITED STATES TREASURY 4.375
12/31/2029 400,000.00 --

4.45%
398,679.69
399,067.06
100.64

4.17%
402,578.00

47.55 1.89%
3,510.94
Aa1/AA+
AA+

3.50 3.21
91282CMU2 UNITED STATES TREASURY 4.0
03/31/2030 300,000.00 04/07/2025

3.75%
303,375.00
302,541.46

99.36 4.18%
298,089.90
3,016.39

1.40%
(4,451.56)
Aa1/AA+
AA+

3.75 3.41
91282CMZ1 UNITED STATES TREASURY 3.875
04/30/2030 500,000.00 09/16/2025

3.57%
506,425.78
505,331.95

98.92 4.18%
494,590.00
3,264.27

2.32%
(10,741.95)
Aa1/AA+
AA+

3.83 3.50
91282CNG2 UNITED STATES TREASURY 4.0
05/31/2030 350,000.00 06/09/2025

4.08%
348,742.19
349,009.54

99.32 4.19%
347,634.70
1,185.79

1.63%
(1,374.84)
Aa1/AA+
AA+

3.92 3.58
91282CNK3 UNITED STATES TREASURY 3.875
06/30/2030 325,000.00 07/29/2025

3.95%
323,933.59
324,133.10

98.84 4.19%
321,242.35

34.22 1.51%
(2,890.75)
Aa1/AA+
AA+

4.00 3.66
91282CNN7 UNITED STATES TREASURY 3.875
07/31/2030 225,000.00 08/26/2025

3.77%
226,081.05
225,895.97

98.82 4.19%
222,345.68
3,636.83

1.04%
(3,550.29)
Aa1/AA+
AA+

4.08 3.68
91282CNX5 UNITED STATES TREASURY 3.625
08/31/2030 500,000.00 09/16/2025

3.58%
500,937.50
500,788.76

97.83 4.20%
489,160.00
6,058.08

2.29%
(11,628.76)
Aa1/AA+
AA+

4.17 3.77
91282CPN5 UNITED STATES TREASURY 3.5
11/30/2030 150,000.00 12/09/2025

3.77%
148,154.30
148,360.62

97.20 4.20%
145,792.95
444.67

0.68%
(2,567.67)
Aa1/AA+
AA+

4.42 4.03
91282CPR6 UNITED STATES TREASURY 3.625
12/31/2030 350,000.00 01/29/2026

3.82%
347,033.20
347,284.29

97.64 4.21%
341,755.75

34.48 1.60%
(5,528.54)
Aa1/AA+
AA+

4.50 4.10
Total US Treasury 9,425,000.00 3.93%
9,437,794.93
9,428,617.15

99.35 4.17%
9,362,536.45
71,764.71

43.88%
(66,080.70)

2.93 2.70
31 HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total Portfolio 21,630,382.00 4.19%
21,396,203.33
21,431,077.59

98.19 4.33%
21,336,659.25
166,065.91
100.00%
(94,418.34)

3.05 2.57
Total Market Value +
Accrued 21,502,725.16
32 TRANSACTIONS
33 TRANSACTION LEDGER
City of Campbell | Account #11214|04/01/2026 Through 06/30/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 05/13/2026 43814YAD3 160,000.00 HAROT 2026-2 A3 4.3 11/15/2030 99.997 3.02% (159,995.38) 0.00 (159,995.38) 0.00 Purchase 05/14/2026 36275AAD1 70,000.00 GMALT 2026-2 A3 4.3 03/20/2029 99.989 4.40% (69,992.43) 0.00 (69,992.43) 0.00 Purchase 05/21/2026 06051GJB6 300,000.00

BANK OF AMERICA
CORP 2.592
04/29/2031

91.953 5.02% (275,859.00) (475.20) (276,334.20) 0.00
Purchase 05/22/2026 58933YCK9 85,000.00 MERCK & CO INC 4.65 05/22/2031 99.938 4.66% (84,947.30) 0.00 (84,947.30) 0.00 Purchase 05/29/2026 91282CKV2 300,000.00

UNITED STATES
TREASURY 4.625
06/15/2027
100.738 3.90% (302,214.84) (6,289.49) (308,504.33) 0.00 Purchase 05/29/2026 91282CPS4 300,000.00

UNITED STATES
TREASURY 3.375
12/31/2027

99.035 4.01% (297,105.47) (4,167.47) (301,272.94) 0.00
Purchase 06/08/2026 3137FX3Q9 250,000.00 FHMS K-117 A2 1.406 08/25/2030 88.582 4.46% (221,455.08) (68.35) (221,523.43) 0.00 Purchase 06/08/2026 57636QBL7 180,000.00 MASTERCARD INC 4.6 06/08/2031 99.920 4.62% (179,856.00) 0.00 (179,856.00) 0.00 Purchase 06/17/2026 44935KAD5 120,000.00 HART 26B A3 4.81 02/18/2031 99.988 4.86% (119,985.52) 0.00 (119,985.52) 0.00 Purchase 06/18/2026 67066GAR5 110,000.00 NVIDIA CORP 4.5 06/15/2031 99.810 4.54% (109,791.00) 0.00 (109,791.00) 0.00 Purchase 06/23/2026 3137FWG79 250,000.00 FHMS K-115 A2 1.383 06/25/2030 89.129 4.39% (222,822.27) (211.29) (223,033.56) 0.00 Total Purchase 2,125,000.00 (2,044,024.29) (11,211.80) (2,055,236.09) 0.00 TOTAL
ACQUISITIONS 2,125,000.00 (2,044,024.29) (11,211.80) (2,055,236.09) 0.00

DISPOSITIONS
Maturity 05/26/2026 62479MES8 (350,000.00)
MUFG Bank, Ltd.,
New York Branch
05/26/2026
100.000 3.99% 350,000.00 0.00 350,000.00 0.00
Total Maturity (350,000.00) 350,000.00 0.00 350,000.00 0.00 34 TRANSACTION LEDGER
City of Campbell | Account #11214|04/01/2026 Through 06/30/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Sale 05/08/2026 89115A3E0 (225,000.00)

TORONTO-DOMINION
BANK 4.861
01/31/2028
100.853 4.86% 226,919.25 2,977.36 229,896.61 1,919.25
Sale 05/12/2026 06368MJG0 (100,000.00) BANK OF MONTREAL

5.004 01/27/2029 100.851 5.01% 100,851.00 1,459.50 102,310.50 851.00 Sale 05/21/2026 06051GMK2 (150,000.00)

BANK OF AMERICA
CORP 4.979
01/24/2029
100.649 4.98% 150,973.50 2,427.26 153,400.76 973.50
Sale 05/21/2026 06051GLG2 (150,000.00)

BANK OF AMERICA
CORP 5.202
04/25/2029
101.137 4.69% 151,705.50 563.55 152,269.05 374.82
Sale 06/04/2026 91282CJC6 (375,000.00)

UNITED STATES
TREASURY 4.625
10/15/2026
100.316 3.90% 376,186.52 2,369.36 378,555.88 242.53
Sale 06/18/2026 91282CKE0 (350,000.00)

UNITED STATES
TREASURY 4.25
03/15/2027
100.277 3.86% 350,970.70 3,840.01 354,810.71 12.35
Total Sale (1,350,000.00) 1,357,606.47 13,637.04 1,371,243.51 4,373.45 TOTAL
DISPOSITIONS (1,700,000.00) 1,707,606.47 13,637.04 1,721,243.51 4,373.45 35 IMPORTANT DISCLOSURES
2026 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.

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.

LGIP Yields: Reported yields for local government investment pools may be presented as either the 30-day yield or the monthly distribution yield, as applicable. For certain funds, the 30-day yield is calculated using reported daily yield data. Yield calculations are subject to change and may not be directly comparable across funds.

LAIF Yields: Additional Disclosure for CA Clients - As a result of a reporting lag from the Local Agency Investment Fund (LAIF), reported LAIF yields represent the most recently available Daily Effective Yield and may reflect data from approximately 7–10 days prior to month-end. 36 BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-5 Yr US Unsubordinated
Treasury & Agency Index
The ICE BofA 1-5 Year US Unsubordinated 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 (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. 37

City Council SubcommitteeAugust 24, 2026

City Council Subcommittee
August 24, 2026