PARS City of San Leandro 115
Client Management Team
PFM Asset Management
A division of U.S. Bancorp Asset Management, Inc.
1 California Street
Suite 1000
San Francisco, CA 94111
1735 Market Street
43rd Floor
Philadelphia, PA 19103
Investment Performance Review
For the Quarter Ended September 30, 2025
Andrew Brown, CFA, Sr. Investment Strategist/Portfolio Manager Attachment B
*A division of U.S. Bancorp Asset Management, Inc.
**As of June 30, 2025. Public sector includes government, pool, and TERM. Total assets under management for U.S. Bancorp Asset Management, Inc. were $404.9 billion.
About PFM Asset Management*
40+ years of experience in the
public sector**
$177.5b in public sector assets
under management**
Our Investment Solutions
• Outsourced Chief Investment Officer
(OCIO): Multi-asset class portfolios for
institutional investors
• Fixed Income: High-quality, short- and
intermediate-term portfolios for operating
funds, reserves, working capital, selfinsurance funds and bond proceeds • Local Government Investment Pools
(LGIPs): services for programs with
options ranging from fully liquid cash
management to a fixed-rate, fixed-term
investment
• Specialized Solutions: Arbitrage rebate,
escrow restructuring, bond proceeds
investments, structured investments 1Illustrates public sector assets under management by investment solution as of 12/31/2024. Total may not add up to 100% due to rounding. 42%
48%
10%
Assets by Investment Solution1
Fixed Income
LGIPs
OCIO
1Illustrates public sector assets under management by investment solution as of June 30, 2025. Total may not add up to 100% due to rounding. 1 Financial Markets & Investment Strategy Review
2 QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2025
Multi-Asset Class Management
Index or Average Name QTD YTD One Year Three
Year Five Year Seven Year Ten Year
DOMESTIC EQUITY
S&P 500 (TR) 8.12% 14.83% 17.60% 24.91% 16.46% 14.44% 15.29% Russell 3000 8.18% 14.40% 17.41% 24.09% 15.73% 13.70% 14.70% Russell 1000 Growth 10.51% 17.24% 25.53% 31.58% 17.56% 18.09% 18.81% Russell 1000 7.99% 14.60% 17.75% 24.61% 15.98% 14.17% 15.02% Russell 1000 Value 5.33% 11.65% 9.44% 16.95% 13.87% 9.52% 10.71% Russell Midcap 5.33% 10.42% 11.11% 17.67% 12.65% 10.06% 11.38% Russell Midcap Growth 2.78% 12.84% 22.02% 22.82% 11.25% 11.99% 13.36% Russell Midcap Value 6.18% 9.50% 7.58% 15.50% 13.66% 8.64% 9.95% Russell 2000 Growth 12.19% 11.65% 13.56% 16.67% 8.41% 6.61% 9.90% Russell 2000 12.39% 10.39% 10.76% 15.20% 11.55% 6.75% 9.76% Russell 2000 Value 12.60% 9.04% 7.88% 13.55% 14.59% 6.39% 9.22%
INTERNATIONAL EQUITY
MSCI EAFE 4.77% 25.14% 14.99% 21.68% 11.15% 7.71% 8.16% MSCI AC World 7.62% 18.44% 17.27% 23.10% 13.54% 11.27% 11.90% MSCI AC World ex USA 6.89% 26.02% 16.45% 20.65% 10.25% 7.48% 8.22% MSCI AC World ex USA Small Cap 6.68% 25.54% 15.93% 19.34% 9.96% 7.16% 8.36% MSCI EM (Emerging Markets) 10.64% 27.53% 17.32% 18.19% 7.01% 6.16% 7.98%
LISTED REAL ASSETS
FTSE Nareit / Equity REITs - INV 4.77% 4.51% -1.98% 10.79% 9.32% 6.10% 6.60% MSCI US REIT INDEX 4.49% 3.75% -2.88% 9.50% 8.03% 4.89% 5.31% MSCI World Core Infrastructure 1.80% 15.48% 8.21% 11.33% 7.86% 7.46% 8.26%
FIXED INCOME
Bloomberg U.S. Aggregate 2.03% 6.13% 2.88% 4.92% -0.45% 2.06% 1.84% Bloomberg U.S. Government/Credit 1.91% 5.93% 2.67% 4.87% -0.61% 2.22% 1.99% Bloomberg U.S. Intermediate Government/Credit 1.51% 5.70% 4.01% 5.17% 0.81% 2.61% 2.09% Bloomberg U.S. Treasury (1-3 Y) 1.12% 3.99% 3.89% 4.35% 1.53% 2.24% 1.67% ICE BofA U.S. High Yield 2.40% 7.06% 7.23% 10.96% 5.53% 5.17% 6.07% Bloomberg Global Aggregate 0.60% 7.91% 2.40% 5.44% -1.56% 0.79% 1.14%
CASH EQUIVALENT
Bloomberg 3 Month T-Bill 1.08% 3.21% 4.43% 4.85% 3.03% 2.66% 2.11% Source: Investment Metrics. Returns are expressed as percentages. Please refer to the last page of this document for important disclosures relating to this material.
2.1 QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2025
Multi-Asset Class Management
THE ECONOMY
• In the second quarter, U.S. real gross domestic product (GDP) grew at a seasonally adjusted annualized rate of 3.8%, marking the strongest growth since Q3 2023. This rebound in growth was supported by an uptick in consumer spending and business investment. While the data still points to some moderation in activity compared to last year, the slowdown may not be as severe as originally feared. • The U.S. unemployment rate ticked up over the quarter, rising to 4.3% in August.
The latest initial jobless claims ended the quarter slightly lower at 218.0k (for the week ending September 20) after an early September spike, while the outstanding claims also fell to approximately 1,926.0k signaling layoffs remain subdued despite broader signs of labor market cooling. The other side of the “low-hire, low-fire” environment can be seen in the duration of unemployment, with 25.7% of the job seekers experiencing unemployment for more than six months, the highest share since February 2022.
• Inflation accelerated in the third quarter. Headline inflation (CPI) grew at a yearover-year (YoY) rate of 2.9% in August, the highest rate since January, as prices of food and energy rose while core CPI, which excludes volatile food and energy, grew at 3.10% on an annual basis.
U.S. Unemployment and Monthly Average Continued Claims
Source: Bloomberg.
U.S. GDP Growth
Source: Bloomberg. Light blue bars indicate actual numbers; dark blue bars indicate forecasted estimates. 0 500
1,000
1,500
2,000
2,500
3,000
3,500
0%
2%
4%
6%
8%
10%
Aug-20 Aug-21 Aug-22 Aug-23 Aug-24 Aug-25
Thousands
3.8%
1.7%
1.2%
1.5%
1.9%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2
2021 2022 2023 2024 2025 2026
QoQ% Change, SA, Annualized
Source: Bureau of Labor Statistics.
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Sep-21 Sep-22 Sep-23 Sep-24
YoY% Change
Core CPI CPI
U.S. Inflation Rate
Seasonally Adjusted (SA)
2.2 QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2025
Multi-Asset Class Management
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Sep-21 Sep-22 Sep-23 Sep-24 Sep-25
Fed Target Rate ECB Target Rate
Bank of England Target Rate Bank of Canada Target Rate
0 20
40 60
80 100
Sep-21 Sep-22 Sep-23 Sep-24 Sep-25
WHAT WE’RE WATCHING
• The Federal Reserve (Fed) cut rates in the third quarter by a quarter percentage point, prompted by increasing weakness in the labor market. The Fed also signaled that two more quarter-percentage-point rate reductions are likely before the end of the year.
However, with inflation above the 2% policy target, the Fed will be focused on balancing maximum employment and price stability. Outside of the U.S., the European Central Bank (ECB) which preceded the U.S. with cuts earlier in the year, held rates flat in the third quarter.
• U.S. consumer sentiment, as measured by the University of Michigan survey of consumers, fell during the third quarter as consumers continued to express concerns about the impact of high prices on personal finances. Consumer spending, which drives more than two-thirds of the economy, rose 0.6% month-over-month in August, supported by higher-income consumers benefiting from a strong wealth effect as equity markets continue to rise.
• Manufacturing in the U.S. remains challenged, with the ISM U.S. Manufacturing PMI reading coming in at 49.1 in September. This marked the seventh consecutive month of contraction as input prices remain elevated while demand is relatively weak. The threat of volatility stemming from trade and tariffs has mostly passed, though some trade agreement deadlines are set in Q4, which pose continued uncertainty for many countries and companies.
Global Central Bank Rates
Source: Bloomberg.
U.S. ISM Manufacturing & Services PMI
Source: Bloomberg.
40 45
50 55
60 65
70 Sep-21 Sep-22 Sep-23 Sep-24 Sep-25
Manufacturing Services
University of Michigan Consumer Sentiment
Source: Bloomberg.
2.3 QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2025
Multi-Asset Class Management
DOMESTIC EQUITY
• The S&P 500 Index (S&P) posted an 8.1% return in the third quarter (of 2025).
The Index has hit 23 new all-time closing highs and the year-to-date (YTD) return stands at 14.8%.
• Within the S&P, the performance varied greatly across sectors, with 10 of the 11 seeing positive returns. The best performing sectors were Information Technology (13.2%), Communication Services (12.0%), and Consumer Discretionary (9.5%). Real Estate saw a relatively weak return (2.6%) while only Consumer Staples saw a negative return (-2.4%).
• Positive returns were seen across all capitalizations with large caps, as represented by the Russell 1000 Index, returning 8.0% during the quarter while mid and small caps, as represented by the Russell Midcap and Russell 2000 indices returned 5.3% and 12.4% respectively. Small caps outperformed large caps over the quarter, and the Russell 2000 ended the quarter at an alltime high. • According to FactSet Earnings Insight as of September 26, 2025, analysts are projecting earnings growth of 7.9% in Q3 2025, up from a prior estimate of 7.3% at the start of the quarter. This unusual upward revision (over the past 10 years estimates fell an average of 3.2% during the quarter) was led by the Information Technology sector as companies benefiting from artificial intelligence (AI) continued to have an outsized impact on the market. For calendar year 2025, analysts are projecting YoY earnings growth of 10.9%. If the projected earnings growth in Q3 is correct and comes to fruition, this will mark the ninth consecutive quarter of earnings growth for the index. • At quarter end, the forward 12-month adjusted positive price-to-earnings (P/E) ratio (including only positive earnings results for consistency) for the S&P 500 is 27.4, which is above the 5-year average of 23.3. The Russell 2000 Index, which represents small cap stocks, had an adjusted positive forward P/E ratio of 21.2, also above its 5-year average of 17.7.
Source: Bloomberg.
S&P 500 Index Performance by Sector
Periods Ended September 30, 2025
Source: Bloomberg.
*P/E ratios are calculated based on one-year forward estimates and adjusted to include only positive earnings results for consistency.
P/E Ratios of Major Stock Indices*
Consumer
Disc.
Consumer
Staples Energy Financials H'lthcare Industrials Info. Tech Materials Real Estate Telecom Utilities QTD 9.54% -2.36% 6.21% 3.22% 3.76% 4.91% 13.19% 3.10% 2.59% 12.04% 7.57% YTD 5.30% 3.89% 7.04% 12.70% 2.61% 18.25% 22.31% 9.32% 6.19% 24.51% 17.69% 1 Year 20.31% 0.51% 4.43% 20.66% -7.95% 15.40% 28.22% -4.27% -2.24% 35.55% 11.20% -15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
10 15
20 25
30 35
Oct-20 Oct-21 Oct-22 Oct-23 Oct-24
S&P 500 S&P 500 5-Year Average
Russell 2000 Russell 2000 5-Year Average
2.4 QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2025
Multi-Asset Class Management
INTERNATIONAL EQUITY
• Markets outside of the United States, as measured by the MSCI ACWI ex-U.S.
Index, cooled somewhat in the third quarter returning 6.9%, just over half of the previous quarter’s strong returns.
• 10 of the 11 sectors posted positive returns for the quarter. The top performing sectors were Materials (15.1%), Information Technology (11.0%) and Consumer Discretionary (10.8%). The worst performers for the quarter were Healthcare (1.9%), Utilities (1.8%), and Consumer Staples (-0.6%). • Developed ex-U.S. Markets, as represented by the MSCI EAFE Index, underperformed emerging markets (EM), as represented by the MSCI Emerging Market Index, returning 4.8% versus 10.6% for the quarter. Returns from all international indices are in U.S. Dollars (USD) and were positively impacted by the continued softness of the U.S. dollar.
• Of the five largest-weighted countries in the MSCI EAFE Index, the MSCI Japan (8.0%) and MSCI United Kingdom (5.9%) indices outperformed the overall EAFE index. The MSCI France (3.2%) and MSCI Switzerland (1.4%) indices underperformed while the MSCI Germany Index (-1.1%) was the only of the top five that saw negative returns.
• Of the five largest-weighted countries in EM, MSCI China (20.7%), MSCI Taiwan (14.3%), and MSCI Korea (12.8%) outperformed the MSCI Emerging Markets index, while MSCI Brazil (8.3%) and MSCI India (-7.6%) underperformed.
Taiwan and Korea continued their streak of double-digit returns supported by semiconductor names positively impacted by the AI theme. • Value stocks outperformed growth stocks for the quarter as represented by the broad benchmarks. The MSCI AC World ex-USA Growth Index returned 5.7%, while the MSCI AC World ex-USA Value Index returned 8.1%. Within EM, growth outperformed value, returning 12.0% versus 7.9%. Small caps, as represented by the MSCI ACWI ex-U.S. Small Cap Index posted a return of 6.7%. • Non-U.S. equity valuations rose over the third quarter. Both sit slightly above longterm averages. As of quarter-end, the MSCI EAFE’s Adjusted Positive Forward P/E stood at 17.3 versus a 5-year average of 15.7. MSCI EM ended the quarter with an Adjusted Positive Forward P/E ratio of 15.2, above its 5-year average of 13.2.
Source: Bloomberg.
MSCI ACWI ex-U.S. Sectors
Periods Ended September 30, 2025
Source: Bloomberg.
*P/E ratios are calculated based on one-year forward estimates and adjusted to include only positive earnings results for consistency.
P/E Ratios of MSCI Equity Indices*
Consumer
Disc.
Consumer
Staples Energy Financials Healthcare Industrials Info Tech Materials RealEstate Telecom Utilities QTD 10.80% -0.60% 5.43% 6.14% 1.87% 4.94% 10.97% 15.14% 3.47% 10.15% 1.77% YTD 18.49% 13.78% 16.98% 33.49% 8.11% 30.51% 26.60% 33.09% 18.67% 41.25% 26.53% 1 Year 8.88% -0.31% 7.70% 29.71% -6.88% 21.26% 24.39% 10.21% 4.97% 31.66% 10.28% -10%
0%
10%
20%
30%
40%
50%
8 13
18 23
28 Oct-20 Oct-21 Oct-22 Oct-23 Oct-24
MSCI EAFE MSCI EAFE 5-Year Average
MSCI Emerging Markets MSCI Emerging Markets 5-Year Average
2.5 QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2025
Multi-Asset Class Management
FIXED INCOME
• The U.S. bond market, represented by the Bloomberg U.S. Aggregate Index, returned 2.0% during the third quarter.
• The Bloomberg U.S. Treasury Index closed the quarter returning 1.5%. As the Fed cut rates for the first time in September 2025 and guided two more rate cuts for the year, the yield curve flattened slightly as rates fell across the duration spectrum. 30-year Treasury yields fell to 4.7%, while the 2-year ended at 3.6%. Cash markets continued to provide higher yields than the 2-year Treasuries.
• Corporate credit saw positive returns across the quality spectrum for the quarter. The Investment Grade Bloomberg U.S. Corporate (IG Corp) Index returned 2.6% while High Yield bonds, as represented by the ICE BofA High Yield (HY) Index, returned 2.4%. Spreads tightened slightly over the quarter and are now below the 10-year average for both investment-grade and high yield. High profit margins, continued issuance, continued buybacks and ongoing mergers and acquisitions (M&A) activity points to positive corporate sentiment.
• The fixed-rate mortgage market, as measured by the Bloomberg U.S.
Mortgage-Backed Securities (MBS) Index returned 2.4%. On the commercial side, the Bloomberg U.S. Agency CMBS Index returned 1.6% while the nonagency CMBS Index posted a return of 1.9%.
Source: Bloomberg.
Returns for Fixed-Income Segments
Periods Ended September 30, 2025
Source: Bloomberg.
U.S. Treasury Yield Curve
3.61%
3.74% 4.15%
4.73%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
9/30/2024
6/30/2025
9/30/2025
3-mo 2-yr 5-yr 10-yr 30-yr
Blmbg U.S.
Aggregate
Blmbg U.S.
Treasury
Blmbg U.S.
MBS
Blmbg U.S.
Corporate
ICE BofA U.S.
HY
QTD 2.03% 1.51% 2.43% 2.60% 2.40%
YTD 6.13% 5.36% 6.76% 6.88% 7.06%
1 Year 2.88% 2.06% 3.39% 3.63% 7.23%
0%
1%
2%
3%
4%
5%
6%
7%
8%
2.6 QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2025
Multi-Asset Class Management
ALTERNATIVES
• Real estate investment trusts (REITs), as measured by the MSCI U.S. REITs Index, returned 4.8% in the third quarter (a reversal from negative returns in the second quarter) leading to a YTD return of 4.7%. Private real estate, as measured by the NCREIF Property Index, gained 1.27% in the first quarter of 2025. Q1 2025 marked the second quarter of positive total returns in two years as property value declines leveled off across most sectors. The Seniors Housing category was the top performer, returning 1.9%, while Hotels returned a marginally positive 0.5%. • Listed infrastructure, as measured by the MSCI World Core Infrastructure Index, returned 1.8% in the third quarter, down from a 5.4% return in the prior quarter.
By the end of Q2 2025, 39 private infrastructure funds raised $104.0 billion, maintaining the brisk pace of Q1. Most of the capital went to funds larger than $5 billion which seek to capitalize on rising AI demand. Infrastructure dry powder has fallen from the previous year and stands at $377.8 billion as of the end of 2024.
According to PitchBook, infrastructure funds posted a return of 0.2% in Q1 2025.
The asset class has generated an annualized return of 11.1% for the five years ended Q1 2025.
• By the end of Q2 2025, 82 private debt funds raised $114.2 billion, with fundraising now on pace for another strong year by historical standards. Private debt dry powder remains above the long-term average at $542.7 billion as of the end of 2024; although over 50% has been outstanding for more than two years.
According to PitchBook, private debt funds posted a return of 2.14% in Q1 2025.
The asset class has generated an annualized return of 10.37% for the five years ended Q1 2025.
• As of Q2 2025, 252 private equity funds raised $212.5 billion – continuing the slower pace compared to the historical norms as constrained distributions hindered fundraising efforts. The bulk of the capital raised continues to flow to experienced managers raising capital for funds larger than $1 billion. Global private equity dry powder, which accounts for the bulk of private capital dry powder, remains high at $1.6 trillion as of the end of 2024. Recent private equity performance continues to feel the effects of higher borrowing costs and a slowdown in deal activity. According to PitchBook, private equity funds posted a return of 0.3% in Q1 2025. The asset class has generated an annualized return of
18.29% for the five years ended Q1 2025.
Source: NCREIF, PitchBook.
As of March 31, 2025, the most recent period for which all index data is available.
Returns for Private Capital Assets
Sources: Pitchbook.
* Total capital raised in 2025 as of June 30, 2025 - most recent period for which ALL fundraising data is available. ** Cumulative dry powder and total AUM as of December 31, 2024. *** Excluding open-end, evergreen fund vehicles.
Private Capital Fundraising & Dry Powder
Private Real Estate Infrastructure Private Debt Private Equity QTD 1.27% 0.17% 2.14% 0.28%
YTD 1.27% 0.17% 2.14% 0.28%
1 Year 2.80% 6.42% 10.37% 8.36%
0%
2%
4%
6%
8%
10%
12%
ClosedEnd Real
Estate
Infrastruc
ture
Private
Debt
Private
Equity
Venture
Capital
YTD Fundraising ($B)* $55.57 $103.98 $114.18 $212.51 $50.38 Dry Powder ($B)** $362.80 $377.75 $542.71 $1,558.75 $632.79 Total AUM ($B)** $1,298.73 $1,541.08 $1,853.32 $5,906.84 $3,290.58 $0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$ Billions
2.7 QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2025
Multi-Asset Class Management
Inflation (U.S.):
• Inflation accelerated in Q3 led by rising goods
prices and sticky services costs, keeping core
inflation closer to 3%, well above the Fed’s 2% target
– a consideration for further rate cuts.
• Fed Chair Powell noted tariffs have begun to push
up goods prices in some categories, but the base
case is for these effects to be short-lived.
Economic Growth (Global):
• Resilient U.S. growth driven by robust consumer
spending and elevated business investment despite
growing softness in the labor market.
• Trade tensions, elevated tariffs and a prolonged U.S. government shutdown remain key downside risks,
while AI driven investment and fiscal support in
some regions provide partial offsets.
Monetary Policy (Global):
• The Fed cut rates by 25 bps in September citing
rising downside risks to employment despite
inflation remaining above its 2% target. Further rate
cuts expected in 2025 and 2026.
• Major central banks have already eased (ECB and
BOE) or are in the process of further easing (U.S.
and Canada) except for the BOJ.
Labor Markets (U.S.):
• Labor market conditions continued to cool with net
new job creation nearing zero while being
concentrated in just a few service sectors.
Continued weakening can have impact on
consumption.
• Despite some signs of cooling, the layoff rate
remains low and points towards employers adopting
a “no hire, no fire” approach.
Consumer Spending (U.S.):
• Slower nominal wage growth combined with higher
inflation has eroded real purchasing power.
However, consumer activity remained resilient,
driven by spending from higher income households.
• Further labor market softness, a significant
correction in the equity market or higher passthrough of tariffs to goods prices remain the largest threats to consumer spending.
Financial Conditions (U.S.):
• Financial conditions eased as tariff announcements
were digested, renewing market confidence which
resulted in equities reaching new all-time highs and
credit spreads tightening to historical lows.
• Financial conditions expected to remain tailwind as
monetary policy eases.
Political/Policy Risks:
• Reconciliation bill passage, ongoing trade deals,
peace progress on Israel–Hamas conflict are
positives on policy front.
• Prolonged U.S. government shutdown, legal
challenges to tariffs and possibility of further tariffs, Russia-Ukraine conflict are negatives.
Valuations:
• U.S. equities and credit markets trade at valuations
that are expensive relative to their history.
• Resilient growth, AI related spending tailwinds and
higher profit margins are supportive of the current
valuations while inflation and tariff risks are not fully reflected in the current valuations.
Corporate Fundamentals:
• Earnings growth expectations are positive across
global equities, but expectations within U.S.
positively impacted by AI spending tailwinds.
• In the U.S., capex deduction changes and rate cuts
are positives while tariff/cost pressure impact on
both earnings growth expectations and profit
margins needs attention.
Factors to Consider Over the Next 6-12 Months
Statements and opinions expressed about the next 6-12 months were developed based on our independent research with information obtained from Bloomberg. The views expressed within this material constitute the perspective and judgment of PFM Asset Management, a division of U.S. Bancorp Asset Management, Inc., at the time of distribution (September 30, 2025) and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, we cannot guarantee its accuracy, completeness, or suitability.
Stance Unfavorable
to Risk Assets
Stance Favorable to
Risk Assets
Current outlook Outlook one quarter ago Positive Slightly Positive Neutral Slightly Negative Negative
2.8 QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2025
Multi-Asset Class Management
Asset Class Our Q4 2025 Investment Outlook Comments
• Equity market rally on the back of trade deals led us to maintain neutral positioning through Q3 unwinding defensive stance taken in Q2. • Looking ahead, we remain neutral at a time when easing monetary and fiscal policies and strong corporate earnings are positives while higher inflation, softening labor market, tariff/trade tensions (effective tariff rate currently at ~20%) and elevated valuations lead to some caution. • Small-caps have been rallying recently in anticipation of Fed rate cuts, higher liquidity and improving sentiment, reaching their all time high at the end of Q3. We expect to remain neutral until we see some recovery across employment and manufacturing indicators.
U.S. Equities
Large-Caps
Small-Caps
• International equities have posted strong returns this year. Valuations are attractive relative to U.S. equities, but multiples have continued to creep higher this year as earnings growth has not kept the pace. • Across Europe and China, we believe that there are structural/geopolitical issues that need to be addressed for long-term sustained outperformance. • Fed rate cuts, weaker USD, improved sentiment and continued stimulus in China led to strong performance for EM equities but tariff driven uncertainty remains in place.
Non-U.S. Equities
Developed Markets
Emerging Markets
• Fed cut rates by 25 bps in September for the first time in 2025 and provided guidance for two more rate cuts this year.
• Yield curve has steepened in anticipation of the rate cuts. We expect long term rates to be range-bound due to inflation expectations and fiscal debt concerns.
• We remain duration neutral at this time. Absolute yield levels look attractive even as credit spreads are closer to historical lows. We are neutral to credit sectors at this time given the tighter spreads even as corporate fundamentals remain strong.
Fixed Income
Core Bonds
Investment Grade Credit
High Yield Credit
• REIT performance has been sensitive to the long-term yields and have recently shown recovery in performance. Rate cuts and period of slow but continued growth are expected to be tailwinds.
• Improving AI sentiment bodes well for data center buildout and utilities are long-term tailwinds for listed infrastructure.
Diversifying Assets
Listed Real Estate
Listed Global Infrastructure
Investment Strategy Overview
The view expressed within this material constitute the perspective and judgment of PFM Asset Management, a division of U.S. Bancorp Asset Management, Inc., at the time of distribution (September 30, 2025) and are subject to change.
Current outlook Outlook one quarter ago Positive Slightly Positive Neutral Slightly Negative Negative
2.9 QUARTERLY MARKET SUMMARY
For the Quarter Ended September 30, 2025
Multi-Asset Class Management
Sources
Factset
https://www.bea.gov/sites/default/files/2024-12/gdp3q24-3rd-fax.pdf https://www.bls.gov/news.release/pdf/empsit.pdf
https://www.bls.gov/news.release/pdf/cpi.pdf
http://www.sca.isr.umich.edu/
NCREIF
PitchBook
Cliffwater
Disclosures
Indices shown are not available for investment. The index data reference herein is the property of the index provider and/or its licensors. The index provider assumes no liability in connections with its use and does not sponsor, endorse or recommend the products or services contained herein. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be lower than the performance shown.
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2.10 Plan Performance Summary - Pension
3 Allocation
Market
Value
($)
%
Performance(%)
1 Quarter
Year
To
Date
1 Year
3 Years
5 Years
7 Years
10 Years
Since
Inception
Inception
Date
Total Portfolio 36,720,378 100.00 4.65 10.77 9.15 13.57 N/A N/A N/A 4.45 09/01/2021 Blended Benchmark - Pension 4.65 10.19 9.03 13.17 N/A N/A N/A 4.63 Domestic Equity 11,283,794 30.73 8.10 14.35 17.22 22.93 N/A N/A N/A 9.18 09/01/2021 Russell 3000 Index 8.18 14.40 17.41 24.12 15.74 13.71 14.71 10.52 Columbia Contrarian Core Inst3 2,297,901 6.26 7.71 14.52 17.26 25.78 16.73 14.85 14.97 21.80 02/01/2024 S&P 500 8.12 14.83 17.60 24.94 16.47 14.45 15.30 22.99
Putnam Core Equity Fund Y 1,003,620 2.73 8.26 13.22 15.98 25.92 18.24 15.00 15.64 15.98 10/01/2024 Schwab US Large-Cap ETF 7,353,048 20.02 8.04 14.73 17.95 24.89 16.04 14.28 15.13 17.95 10/01/2024 S&P 500 8.12 14.83 17.60 24.94 16.47 14.45 15.30 17.60
Undisc Managers Behavioral Val R6 349,335 0.95 5.31 2.60 2.27 13.85 19.84 8.37 10.47 9.12 02/01/2024 Russell 2000 Value Index 12.60 9.04 7.88 13.56 14.59 6.40 9.23 13.46 Russell 2000 Index 12.39 10.39 10.76 15.21 11.56 6.76 9.77 16.02 Columbia Small Cap Growth Inst3 147,578 0.40 14.20 16.75 21.42 23.81 7.80 11.96 14.87 21.42 10/01/2024 Russell 2000 Growth Index 12.19 11.65 13.56 16.68 8.41 6.62 9.90 13.56 Russell 2000 Index 12.39 10.39 10.76 15.21 11.56 6.76 9.77 10.76 Emerald Growth Institutional 132,312 0.36 17.99 24.36 27.59 23.39 11.99 9.81 11.80 29.42 02/01/2024 Russell 2000 Growth Index 12.19 11.65 13.56 16.68 8.41 6.62 9.90 18.57 Russell 2000 Index 12.39 10.39 10.76 15.21 11.56 6.76 9.77 16.02 International Equity 5,660,480 15.42 5.60 24.43 14.52 19.21 N/A N/A N/A 4.61 09/01/2021 MSCI AC World ex USA (Net) 6.89 26.02 16.45 20.67 10.26 7.49 8.23 6.09 MFS International Growth R6 835,012 2.27 3.49 19.50 10.47 19.69 9.30 8.93 10.28 17.89 02/01/2024 MSCI AC World ex USA (Net) 6.89 26.02 16.45 20.67 10.26 7.49 8.23 19.37 Fidelity International Index 2,267,867 6.18 4.62 26.17 15.60 22.34 11.38 7.97 8.34 18.80 07/01/2024 MSCI EAFE (net) 4.77 25.14 14.99 21.70 11.15 7.71 8.17 18.27 Goldman Sachs GQG Ptnrs Intl Opportunities 817,256 2.23 0.35 16.26 5.19 19.33 9.40 10.47 N/A 4.28 07/01/2024 MSCI AC World ex USA (Net) 6.89 26.02 16.45 20.67 10.26 7.49 8.23 20.18 Fidelity Emerging Markets Index Fund 1,740,346 4.74 10.65 28.11 18.64 18.05 6.64 5.94 7.72 9.21 08/01/2025 MSCI EM (net) 10.64 27.53 17.32 18.21 7.02 6.17 7.99 8.53 Asset Allocation & Performance
PARS/City of San Leandro 115 Pens As of September 30, 2025 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
3.1 Asset Allocation & Performance
PARS/City of San Leandro 115 Pens As of September 30, 2025 Allocation
Market
Value
($)
%
Performance(%)
1 Quarter
Year
To
Date
1 Year
3 Years
5 Years
7 Years
10 Years
Since
Inception
Inception
Date
Other Growth 1,823,961 4.97 2.18 11.28 3.75 N/A N/A N/A N/A 12.39 02/01/2024 Cohen & Steers Inst Realty Shares 903,116 2.46 1.24 5.81 -3.28 9.54 8.10 7.36 7.57 10.95 06/01/2024 MSCI US REIT Index 4.81 4.72 -1.69 10.87 9.30 6.14 6.61 12.82 Lazard Global Listed Infrastructure Inst 468,158 1.27 1.80 17.99 15.63 15.26 11.65 9.19 9.72 15.63 10/01/2024 MSCI World Core Infrastructure Index (Net) 1.80 15.48 8.21 11.34 7.86 7.47 8.27 8.21 NYLI CBRE Global Infrastructure 452,687 1.23 4.33 15.37 9.13 12.54 8.95 8.06 8.69 14.46 06/01/2024 MSCI World Core Infrastructure Index (Net) 1.80 15.48 8.21 11.34 7.86 7.47 8.27 15.52 Fixed Income 17,229,353 46.92 2.19 6.39 3.35 5.75 N/A N/A N/A 0.20 09/01/2021 Blmbg. U.S. Aggregate 2.03 6.13 2.88 4.93 -0.45 2.06 1.84 -0.54 Baird Aggregate Bond Inst 4,674,308 12.73 2.14 6.29 3.08 5.58 -0.12 2.47 2.26 6.07 03/01/2024 iShares Core US Aggregate Bond ETF 3,849,299 10.48 2.04 6.13 2.89 4.92 -0.45 2.04 1.81 5.78 03/01/2024 Blmbg. U.S. Aggregate 2.03 6.13 2.88 4.93 -0.45 2.06 1.84 5.78 Dodge & Cox Income 2,919,713 7.95 2.51 6.94 3.39 6.57 1.29 3.27 3.23 5.57 02/01/2024 PGIM Total Return Bond R6 2,926,920 7.97 2.37 6.57 3.73 6.58 0.39 2.79 2.82 5.61 02/01/2024 Blmbg. U.S. Aggregate 2.03 6.13 2.88 4.93 -0.45 2.06 1.84 4.58 Voya Intermediate Bond 1,549,147 4.22 2.11 6.48 3.52 6.05 0.31 2.66 2.59 3.27 05/01/2025 Blmbg. U.S. Aggregate 2.03 6.13 2.88 4.93 -0.45 2.06 1.84 2.86 NYLI MacKay High Yield Corp Bond Fund 1,206,963 3.29 1.85 5.76 5.97 9.67 5.29 5.08 5.82 7.96 03/01/2024 ICE BofA US High Yield Index 2.40 7.06 7.23 10.97 5.53 5.18 6.07 9.51 Cash Equivalent 722,790 1.97 1.06 3.22 4.42 4.61 N/A N/A N/A 3.52 09/01/2021 ICE BofA 3 Month U.S. T-Bill 1.08 3.17 4.38 4.77 2.98 2.62 2.08 3.64 First American Government Obligation - X 722,790 1.97 1.06 3.22 4.42 4.78 2.98 2.56 N/A 4.78 02/01/2024 ICE BofA 3 Month U.S. T-Bill 1.08 3.17 4.38 4.77 2.98 2.62 2.08 4.80 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
3.2 Performance(%)
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Total Portfolio 9.45 14.07 -13.38 N/A N/A N/A N/A N/A N/A N/A Blended Benchmark - Pension 10.03 13.56 -13.74 N/A N/A N/A N/A N/A N/A N/A Domestic Equity 21.59 24.59 -18.86 N/A N/A N/A N/A N/A N/A N/A Russell 3000 Index 23.81 25.96 -19.21 25.66 20.89 31.02 -5.24 21.13 12.74 0.48 Columbia Contrarian Core Inst3 23.51 32.21 -18.45 24.45 22.44 33.08 -8.81 21.89 8.77 3.25 Putnam Core Equity Fund Y 26.47 27.99 -15.87 30.75 17.66 32.50 -7.91 24.01 13.58 -2.89 Schwab US Large-Cap ETF 24.91 26.87 -19.45 26.75 20.90 31.40 -4.53 21.92 11.77 1.02 S&P 500 25.02 26.29 -18.11 28.71 18.40 31.49 -4.38 21.83 11.96 1.38 Undisc Managers Behavioral Val R6 10.35 14.57 -1.10 34.50 3.62 23.34 -15.20 13.53 20.97 3.52 Russell 2000 Value Index 8.05 14.65 -14.48 28.27 4.63 22.39 -12.86 7.84 31.74 -7.47 Russell 2000 Index 11.54 16.93 -20.44 14.82 19.96 25.53 -11.01 14.65 21.31 -4.41 Columbia Small Cap Growth Inst3 24.45 26.39 -36.51 -2.54 70.41 41.18 -1.92 28.94 13.00 4.19 Emerald Growth Institutional 19.41 19.06 -24.50 4.04 38.85 28.70 -11.57 28.11 10.89 1.24 Russell 2000 Growth Index 15.15 18.66 -26.36 2.83 34.63 28.48 -9.31 22.17 11.32 -1.38 Russell 2000 Index 11.54 16.93 -20.44 14.82 19.96 25.53 -11.01 14.65 21.31 -4.41 International Equity 4.26 14.12 -15.85 N/A N/A N/A N/A N/A N/A N/A MSCI AC World ex USA (Net) 5.53 15.62 -16.00 7.82 10.65 21.51 -14.20 27.19 4.50 -5.66 MFS International Growth R6 9.24 14.96 -15.02 9.65 15.82 27.31 -8.79 32.58 2.79 0.40 MSCI AC World ex USA (Net) 5.53 15.62 -16.00 7.82 10.65 21.51 -14.20 27.19 4.50 -5.66 Fidelity International Index 3.71 18.31 -14.24 11.45 8.17 22.00 -13.52 25.38 1.34 -0.73 MSCI EAFE (net) 3.82 18.24 -14.45 11.26 7.82 22.01 -13.79 25.03 1.00 -0.81 Goldman Sachs GQG Ptnrs Intl Opportunities 5.99 21.25 -11.10 12.49 15.77 27.64 -6.04 31.76 N/A N/A MSCI AC World ex USA (Net) 5.53 15.62 -16.00 7.82 10.65 21.51 -14.20 27.19 4.50 -5.66 Fidelity Emerging Markets Index Fund 6.80 9.50 -20.07 -3.04 17.82 18.26 -14.63 37.65 11.26 -15.84 MSCI EM (net) 7.50 9.83 -20.09 -2.54 18.31 18.42 -14.57 37.28 11.19 -14.92 Calendar Year Comparative Performance
PARS/City of San Leandro 115 Pens As of September 30, 2025 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
3.3 Calendar Year Comparative Performance
PARS/City of San Leandro 115 Pens As of September 30, 2025 Performance(%)
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Other Growth N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Cohen & Steers Inst Realty Shares 6.24 12.72 -24.73 42.47 -2.57 33.01 -3.99 7.45 5.91 5.23 MSCI US REIT Index 8.75 13.74 -24.51 43.06 -7.57 25.84 -4.57 5.07 8.60 2.52 Lazard Global Listed Infrastructure Inst 6.71 10.89 -1.30 19.87 -4.48 22.26 -3.73 20.80 9.30 9.30 NYLI CBRE Global Infrastructure 7.68 3.96 -6.08 15.22 1.17 28.46 -6.56 20.48 10.13 -4.89 MSCI World Core Infrastructure Index (Net) 5.73 4.01 -7.93 17.13 -0.80 26.64 -2.66 19.25 10.96 -9.89 Fixed Income 2.22 6.99 -12.31 N/A N/A N/A N/A N/A N/A N/A Blmbg. U.S. Aggregate 1.25 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 2.65 0.55 Baird Aggregate Bond Inst 1.85 6.43 -13.35 -1.46 8.63 9.48 -0.30 4.20 3.52 0.55 iShares Core US Aggregate Bond ETF 1.37 5.59 -13.06 -1.67 7.42 8.68 -0.05 3.53 2.56 0.48 Dodge & Cox Income 2.26 7.70 -10.87 -0.91 9.45 9.73 -0.31 4.36 5.61 -0.59 PGIM Total Return Bond R6 3.03 7.78 -14.86 -1.15 8.10 11.14 -0.63 6.71 4.83 0.09 Voya Intermediate Bond 2.93 7.07 -14.16 -0.99 8.22 10.06 -0.25 4.84 4.04 0.73 Blmbg. U.S. Aggregate 1.25 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 2.65 0.55 NYLI MacKay High Yield Corp Bond Fund 7.14 11.97 -7.81 5.35 5.28 13.03 -1.34 6.79 15.99 -1.44 ICE BofA US High Yield Index 8.20 13.46 -11.22 5.36 6.17 14.41 -2.27 7.48 17.49 -4.64 Cash Equivalent 4.73 4.98 1.50 N/A N/A N/A N/A N/A N/A N/A ICE BofA 3 Month U.S. T-Bill 5.25 5.02 1.46 0.05 0.67 2.28 1.87 0.86 0.33 0.05 First American Government Obligation - X 5.19 5.00 1.54 0.03 0.40 2.12 1.74 0.79 N/A N/A ICE BofA 3 Month U.S. T-Bill 5.25 5.02 1.46 0.05 0.67 2.28 1.87 0.86 0.33 0.05 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
3.4 QTR
Market Value
As of
07/01/2025
Net Flows Return On
Investment
Market Value
As of
09/30/2025
Total Portfolio 34,662,876 428,560 1,628,942 36,720,378 YTD
Market Value
As of
01/01/2025
Net Flows Return On
Investment
Market Value
As of
09/30/2025
Total Portfolio 32,801,584 372,161 3,546,633 36,720,378 Account Reconciliation
PARS/City of San Leandro 115 Pens As of September 30, 2025
3.5 Plan Performance Summary - OPEB
4 Allocation
Market
Value
($)
%
Performance(%)
1 Quarter
Year
To
Date
1 Year
3 Years
5 Years
7 Years
10 Years
Since
Inception
Inception
Date
Total Portfolio 24,282,843 100.00 3.63 9.05 6.85 10.12 4.54 5.16 5.28 5.06 08/01/2015 Blended Benchmark - OPEB 3.61 8.53 6.86 9.92 N/A N/A N/A N/A Domestic Equity 4,511,575 18.58 8.10 14.36 17.24 22.84 15.17 12.34 13.51 12.81 08/01/2015 Russell 3000 Index 8.18 14.40 17.41 24.12 15.74 13.71 14.71 13.42 Columbia Contrarian Core Inst3 917,835 3.78 7.71 14.52 17.26 25.78 16.73 14.85 14.97 21.80 02/01/2024 S&P 500 8.12 14.83 17.60 24.94 16.47 14.45 15.30 22.99
Putnam Core Equity Fund Y 403,878 1.66 8.26 13.22 15.98 25.92 18.24 15.00 15.64 15.98 10/01/2024 Schwab US Large-Cap ETF 2,939,123 12.10 8.04 14.73 17.95 24.89 16.04 14.28 15.13 17.95 10/01/2024 S&P 500 8.12 14.83 17.60 24.94 16.47 14.45 15.30 17.60
Undisc Managers Behavioral Val R6 139,174 0.57 5.31 2.60 2.27 13.85 19.84 8.37 10.47 9.12 02/01/2024 Russell 2000 Value Index 12.60 9.04 7.88 13.56 14.59 6.40 9.23 13.46 Russell 2000 Index 12.39 10.39 10.76 15.21 11.56 6.76 9.77 16.02 Columbia Small Cap Growth Inst3 58,828 0.24 14.20 16.75 21.42 23.81 7.80 11.96 14.87 21.42 10/01/2024 Russell 2000 Growth Index 12.19 11.65 13.56 16.68 8.41 6.62 9.90 13.56 Russell 2000 Index 12.39 10.39 10.76 15.21 11.56 6.76 9.77 10.76 Emerald Growth Institutional 52,738 0.22 17.99 24.36 27.59 23.39 11.99 9.81 11.80 29.42 02/01/2024 Russell 2000 Growth Index 12.19 11.65 13.56 16.68 8.41 6.62 9.90 18.57 Russell 2000 Index 12.39 10.39 10.76 15.21 11.56 6.76 9.77 16.02 International Equity 2,251,080 9.27 5.57 24.32 14.40 19.21 9.53 7.49 8.08 7.50 08/01/2015 MSCI AC World ex USA (Net) 6.89 26.02 16.45 20.67 10.26 7.49 8.23 6.74 MFS International Growth R6 328,938 1.35 3.49 19.50 10.47 19.69 9.30 8.93 10.28 17.89 02/01/2024 MSCI AC World ex USA (Net) 6.89 26.02 16.45 20.67 10.26 7.49 8.23 19.37 Fidelity International Index 903,600 3.72 4.62 26.17 15.60 22.34 11.38 7.97 8.34 18.80 07/01/2024 MSCI EAFE (net) 4.77 25.14 14.99 21.70 11.15 7.71 8.17 18.27 Goldman Sachs GQG Ptnrs Intl Opportunities 323,727 1.33 0.35 16.26 5.19 19.33 9.40 10.47 N/A 4.28 07/01/2024 MSCI AC World ex USA (Net) 6.89 26.02 16.45 20.67 10.26 7.49 8.23 20.18 Fidelity Emerging Markets Index Fund 694,815 2.86 10.65 28.11 18.64 18.05 6.64 5.94 7.72 9.21 08/01/2025 MSCI EM (net) 10.64 27.53 17.32 18.21 7.02 6.17 7.99 8.53 Asset Allocation & Performance
PARS/City of San Leandro 115 - OPEB As of September 30, 2025 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
4.1 Asset Allocation & Performance
PARS/City of San Leandro 115 - OPEB As of September 30, 2025 Allocation
Market
Value
($)
%
Performance(%)
1 Quarter
Year
To
Date
1 Year
3 Years
5 Years
7 Years
10 Years
Since
Inception
Inception
Date
Other Growth 724,098 2.98 2.18 11.28 3.74 N/A N/A N/A N/A 12.40 02/01/2024 Cohen & Steers Inst Realty Shares 341,699 1.41 1.24 5.81 -3.28 9.54 8.10 7.36 7.57 10.95 06/01/2024 MSCI US REIT Index 4.81 4.72 -1.69 10.87 9.30 6.14 6.61 12.82 Lazard Global Listed Infrastructure Inst 194,114 0.80 1.80 17.99 15.63 15.26 11.65 9.19 9.72 15.63 10/01/2024 MSCI World Core Infrastructure Index (Net) 1.80 15.48 8.21 11.34 7.86 7.47 8.27 8.21 NYLI CBRE Global Infrastructure 188,285 0.78 4.33 15.37 9.13 12.54 8.95 8.06 8.69 14.46 06/01/2024 MSCI World Core Infrastructure Index (Net) 1.80 15.48 8.21 11.34 7.86 7.47 8.27 15.52 Fixed Income 16,199,554 66.71 2.19 6.39 3.35 5.79 0.56 2.47 2.29 2.24 08/01/2015 Blmbg. U.S. Aggregate 2.03 6.13 2.88 4.93 -0.45 2.06 1.84 1.86 Baird Aggregate Bond Inst 4,508,183 18.57 2.14 6.29 3.08 5.58 -0.12 2.47 2.26 6.07 03/01/2024 iShares Core US Aggregate Bond ETF 3,346,445 13.78 2.04 6.13 2.89 4.92 -0.45 2.04 1.81 5.78 03/01/2024 Blmbg. U.S. Aggregate 2.03 6.13 2.88 4.93 -0.45 2.06 1.84 5.78 Dodge & Cox Income 2,574,963 10.60 2.51 6.94 3.39 6.57 1.29 3.27 3.23 5.57 02/01/2024 PGIM Total Return Bond R6 3,081,037 12.69 2.37 6.57 3.73 6.58 0.39 2.79 2.82 5.61 02/01/2024 Blmbg. U.S. Aggregate 2.03 6.13 2.88 4.93 -0.45 2.06 1.84 4.58 Voya Intermediate Bond 1,549,147 6.38 2.11 6.48 3.52 6.05 0.31 2.66 2.59 3.27 05/01/2025 Blmbg. U.S. Aggregate 2.03 6.13 2.88 4.93 -0.45 2.06 1.84 2.86 NYLI MacKay High Yield Corp Bond Fund 1,139,778 4.69 1.85 5.76 5.97 9.67 5.29 5.08 5.82 7.96 03/01/2024 ICE BofA US High Yield Index 2.40 7.06 7.23 10.97 5.53 5.18 6.07 9.51 Cash Equivalent 596,535 2.46 1.06 3.22 4.42 4.60 2.87 2.47 1.94 1.91 08/01/2015 ICE BofA 3 Month U.S. T-Bill 1.08 3.17 4.38 4.77 2.98 2.62 2.08 2.05 First American Government Obligation - X 596,535 2.46 1.06 3.22 4.42 4.78 2.98 2.56 N/A 4.78 02/01/2024 ICE BofA 3 Month U.S. T-Bill 1.08 3.17 4.38 4.77 2.98 2.62 2.08 4.80 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
4.2 Performance(%)
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Total Portfolio 6.53 11.06 -13.53 5.22 10.79 13.68 -2.60 9.43 4.75 N/A Blended Benchmark - OPEB 6.79 10.29 -12.35 N/A N/A N/A N/A N/A N/A N/A Domestic Equity 21.53 24.52 -19.00 23.48 18.94 29.26 -6.25 21.38 11.11 N/A Russell 3000 Index 23.81 25.96 -19.21 25.66 20.89 31.02 -5.24 21.13 12.74 0.48 Columbia Contrarian Core Inst3 23.51 32.21 -18.45 24.45 22.44 33.08 -8.81 21.89 8.77 3.25 Putnam Core Equity Fund Y 26.47 27.99 -15.87 30.75 17.66 32.50 -7.91 24.01 13.58 -2.89 Schwab US Large-Cap ETF 24.91 26.87 -19.45 26.75 20.90 31.40 -4.53 21.92 11.77 1.02 S&P 500 25.02 26.29 -18.11 28.71 18.40 31.49 -4.38 21.83 11.96 1.38 Undisc Managers Behavioral Val R6 10.35 14.57 -1.10 34.50 3.62 23.34 -15.20 13.53 20.97 3.52 Russell 2000 Value Index 8.05 14.65 -14.48 28.27 4.63 22.39 -12.86 7.84 31.74 -7.47 Russell 2000 Index 11.54 16.93 -20.44 14.82 19.96 25.53 -11.01 14.65 21.31 -4.41 Columbia Small Cap Growth Inst3 24.45 26.39 -36.51 -2.54 70.41 41.18 -1.92 28.94 13.00 4.19 Emerald Growth Institutional 19.41 19.06 -24.50 4.04 38.85 28.70 -11.57 28.11 10.89 1.24 Russell 2000 Growth Index 15.15 18.66 -26.36 2.83 34.63 28.48 -9.31 22.17 11.32 -1.38 Russell 2000 Index 11.54 16.93 -20.44 14.82 19.96 25.53 -11.01 14.65 21.31 -4.41 International Equity 4.18 14.21 -15.69 6.22 14.28 23.77 -15.50 30.09 3.02 N/A MSCI AC World ex USA (Net) 5.53 15.62 -16.00 7.82 10.65 21.51 -14.20 27.19 4.50 -5.66 MFS International Growth R6 9.24 14.96 -15.02 9.65 15.82 27.31 -8.79 32.58 2.79 0.40 MSCI AC World ex USA (Net) 5.53 15.62 -16.00 7.82 10.65 21.51 -14.20 27.19 4.50 -5.66 Fidelity International Index 3.71 18.31 -14.24 11.45 8.17 22.00 -13.52 25.38 1.34 -0.73 MSCI EAFE (net) 3.82 18.24 -14.45 11.26 7.82 22.01 -13.79 25.03 1.00 -0.81 Goldman Sachs GQG Ptnrs Intl Opportunities 5.99 21.25 -11.10 12.49 15.77 27.64 -6.04 31.76 N/A N/A MSCI AC World ex USA (Net) 5.53 15.62 -16.00 7.82 10.65 21.51 -14.20 27.19 4.50 -5.66 Fidelity Emerging Markets Index Fund 6.80 9.50 -20.07 -3.04 17.82 18.26 -14.63 37.65 11.26 -15.84 MSCI EM (net) 7.50 9.83 -20.09 -2.54 18.31 18.42 -14.57 37.28 11.19 -14.92 Calendar Year Comparative Performance
PARS/City of San Leandro 115 - OPEB As of September 30, 2025 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
4.3 Calendar Year Comparative Performance
PARS/City of San Leandro 115 - OPEB As of September 30, 2025 Performance(%)
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Other Growth N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Cohen & Steers Inst Realty Shares 6.24 12.72 -24.73 42.47 -2.57 33.01 -3.99 7.45 5.91 5.23 MSCI US REIT Index 8.75 13.74 -24.51 43.06 -7.57 25.84 -4.57 5.07 8.60 2.52 Lazard Global Listed Infrastructure Inst 6.71 10.89 -1.30 19.87 -4.48 22.26 -3.73 20.80 9.30 9.30 NYLI CBRE Global Infrastructure 7.68 3.96 -6.08 15.22 1.17 28.46 -6.56 20.48 10.13 -4.89 MSCI World Core Infrastructure Index (Net) 5.73 4.01 -7.93 17.13 -0.80 26.64 -2.66 19.25 10.96 -9.89 Fixed Income 2.22 6.97 -12.27 -0.82 7.19 8.18 -0.37 4.24 3.13 N/A Blmbg. U.S. Aggregate 1.25 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 2.65 0.55 Baird Aggregate Bond Inst 1.85 6.43 -13.35 -1.46 8.63 9.48 -0.30 4.20 3.52 0.55 iShares Core US Aggregate Bond ETF 1.37 5.59 -13.06 -1.67 7.42 8.68 -0.05 3.53 2.56 0.48 Dodge & Cox Income 2.26 7.70 -10.87 -0.91 9.45 9.73 -0.31 4.36 5.61 -0.59 PGIM Total Return Bond R6 3.03 7.78 -14.86 -1.15 8.10 11.14 -0.63 6.71 4.83 0.09 Voya Intermediate Bond 2.93 7.07 -14.16 -0.99 8.22 10.06 -0.25 4.84 4.04 0.73 Blmbg. U.S. Aggregate 1.25 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 2.65 0.55 NYLI MacKay High Yield Corp Bond Fund 7.14 11.97 -7.81 5.35 5.28 13.03 -1.34 6.79 15.99 -1.44 ICE BofA US High Yield Index 8.20 13.46 -11.22 5.36 6.17 14.41 -2.27 7.48 17.49 -4.64 Cash Equivalent 4.73 4.98 1.48 0.02 0.36 2.08 1.70 0.75 0.23 N/A ICE BofA 3 Month U.S. T-Bill 5.25 5.02 1.46 0.05 0.67 2.28 1.87 0.86 0.33 0.05 First American Government Obligation - X 5.19 5.00 1.54 0.03 0.40 2.12 1.74 0.79 N/A N/A ICE BofA 3 Month U.S. T-Bill 5.25 5.02 1.46 0.05 0.67 2.28 1.87 0.86 0.33 0.05 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
4.4 QTR
Market Value
As of
07/01/2025
Net Flows Return On
Investment
Market Value
As of
09/30/2025
Total Portfolio 23,450,718 (19,658) 851,783 24,282,843
YTD
Market Value
As of
01/01/2025
Net Flows Return On
Investment
Market Value
As of
09/30/2025
Total Portfolio 22,322,588 (58,124) 2,018,379 24,282,843 Account Reconciliation
PARS/City of San Leandro 115 - OPEB As of September 30, 2025
4.5 This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation, as it was prepared without regard to any specific objectives or financial circumstances.
PFMAM professionals have exercised reasonable professional care in the preparation of this performance report. Information in this report is obtained from sources external to PFMAM and is generally believed to be reliable and available to the public; however, we cannot guarantee its accuracy, completeness or suitability. We rely on the client's custodian for security holdings and market values. Transaction dates reported by the custodian may differ from money manager statements. While efforts are made to ensure the data contained herein is accurate and complete, we disclaim all responsibility for any errors that may occur. References to particular issuers are for illustrative purposes only and are not intended to be recommendations or advice regarding such issuers. Fixed income manager and index characteristics are gathered from external sources. When average credit quality is not available, it is estimated by taking the market value weights of individual credit tiers on the portion of the strategy rated by a NRSRO.
It is not possible to invest directly in an index. The index returns shown throughout this material do not represent the results of actual trading of investor assets. Third-party providers maintain the indices shown and calculate the index levels and performance shown or discussed. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be lower than the performance shown.
The views expressed within this material constitute the perspective and judgment of PFMAM at the time of distribution and are subject to change.
Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon certain assumptions and current opinion as of the date of issue and are also subject to change. Some, but not all assumptions are noted in the report.
Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Opinions and data presented are not necessarily indicative of future events or expected performance.
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