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 December 31, 2025
Andrew Brown, CFA, Sr. Investment Strategist/Portfolio Manager *A division of U.S. Bancorp Asset Management, Inc.
**As of September 30, 2025. Public sector includes government, pool, and TERM. Total assets under management for U.S. Bancorp Asset Management, Inc. were $402.1 billion.
About PFM Asset Management*
40+ years of experience in the
public sector**
$171.5b 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
42%
41%
17%
Assets by Investment Solution1
Fixed Income
LGIPs
OCIO
1Illustrates public sector assets under management by investment solution as of September 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 December 31, 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) 2.66% 17.88% 17.88% 22.98% 14.42% 17.28% 14.81% Russell 3000 2.40% 17.15% 17.15% 22.22% 13.14% 16.63% 14.27% Russell 1000 Growth 1.12% 18.56% 18.56% 31.12% 15.31% 21.23% 18.11% Russell 1000 2.41% 17.37% 17.37% 22.72% 13.58% 17.01% 14.58% Russell 1000 Value 3.81% 15.91% 15.91% 13.88% 11.32% 12.09% 10.52% Russell Midcap 0.16% 10.60% 10.60% 14.34% 8.67% 12.74% 11.00% Russell Midcap Growth -3.70% 8.66% 8.66% 18.62% 6.64% 14.19% 12.48% Russell Midcap Value 1.42% 11.05% 11.05% 12.26% 9.82% 11.40% 9.77% Russell 2000 Growth 1.22% 13.01% 13.01% 15.57% 3.18% 10.58% 9.57% Russell 2000 2.19% 12.81% 12.81% 13.72% 6.09% 10.59% 9.61% Russell 2000 Value 3.26% 12.59% 12.59% 11.72% 8.87% 10.08% 9.26%
INTERNATIONAL EQUITY
MSCI EAFE 4.86% 31.22% 31.22% 17.21% 8.92% 10.53% 8.18% MSCI AC World 3.29% 22.34% 22.34% 20.63% 11.19% 13.98% 11.71% MSCI AC World ex USA 5.05% 32.39% 32.39% 17.32% 7.90% 10.14% 8.41% MSCI AC World ex USA Small Cap 2.96% 29.26% 29.26% 15.59% 6.90% 10.03% 8.12% MSCI EM (Emerging Markets) 4.73% 33.57% 33.57% 16.38% 4.19% 8.05% 8.41%
ALTERNATIVES
FTSE Nareit/Equity REITs - INV -1.56% 2.88% 2.88% 8.35% 6.62% 6.92% 5.69% MSCI U.S. REIT INDEX -1.69% 2.95% 2.95% 8.38% 6.58% 6.93% 5.70% MSCI World Core Infrastructure 0.32% 15.85% 15.85% 8.40% 6.56% 8.10% 8.31%
FIXED INCOME
Bloomberg U.S. Aggregate 1.10% 7.30% 7.30% 4.66% -0.36% 1.99% 2.01% Bloomberg U.S. Government/Credit 0.90% 6.88% 6.88% 4.56% -0.59% 2.14% 2.16% Bloomberg U.S. Intermediate Government/Credit 1.20% 6.97% 6.97% 5.05% 0.96% 2.54% 2.29% Bloomberg U.S. Treasury (1-3 Y) 1.14% 5.17% 5.17% 4.49% 1.75% 2.21% 1.83% ICE BofA U.S. High Yield 1.35% 8.50% 8.50% 10.02% 4.49% 6.09% 6.44% Bloomberg Global Aggregate 0.24% 8.17% 8.17% 3.98% -2.14% 0.65% 1.26%
CASH EQUIVALENT
Bloomberg 3 Month T-Bill 0.99% 4.23% 4.23% 4.89% 3.22% 2.72% 2.21% 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 December 31, 2025
Multi-Asset Class Management
THE ECONOMY
• In the third quarter, U.S. real gross domestic product (GDP) accelerated sharply at a seasonally adjusted annualized rate of 4.3%, marking the strongest growth in more than two years. This rebound in growth was driven by strong consumer spending and an increase in net exports. The continued growth points to the persistent resilience of the economy.
• The U.S. unemployment rate ticked up over the quarter, rising to 4.6% in November.
The latest initial jobless claims ended the quarter at 199,000 (for the week ending December 27), the lowest level since January, with the continuing jobless claims also falling to approximately 1.9 million as we continue to see no meaningful increase in layoffs through 2025. The other side of the “low-hire, low-fire” environment can be seen as the pace of hiring, which slowed to 64,000 new jobs created in November after a decline of 105,000 in October, led by a drop in payrolls due to resignation offers across the federal government. • Inflation appears to be cooling in the fourth quarter. Headline inflation (CPI) grew at a year-over-year rate of 2.7% in November, the lowest rate since July. This reading comes with a caveat however, as the government shutdown at the start of the quarter has led to a missed October reading as well as no monthly data released for November.
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
0%
2%
4%
6%
8%
Nov-20 Nov-21 Nov-22 Nov-23 Nov-24 Nov-25
Thousands
4.3%
1.0%
2.1%2.0%2.0%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
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%
Dec-21 Dec-22 Dec-23 Dec-24
YoY% Change
Core CPI CPI
U.S. Inflation Rate
Seasonally Adjusted (SA)
2.2 QUARTERLY MARKET SUMMARY
For the Quarter Ended December 31, 2025
Multi-Asset Class Management
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Dec-21 Dec-22 Dec-23 Dec-24 Dec-25
Fed Target Rate ECB Target Rate
Bank of England Target Rate Bank of Canada Target Rate
0 20
40 60
80 100
Dec-21 Dec-22 Dec-23 Dec-24 Dec-25
WHAT WE’RE WATCHING
• The Federal Reserve (Fed) cut rates twice in the fourth quarter, bringing the new range to 3.50%-3.75% as labor data continued to soften. Looking forward, the summary of economic growth projections point to growing optimism, with an increase in projected economic growth along with a decrease in projected inflation for 2026.
The dot plot for 2026 reflects an expectation of one cut in 2026, though the timing of such a move is uncertain. 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 fourth quarter. • U.S. consumer sentiment, as measured by the University of Michigan survey of consumers, continued to fall during the fourth quarter, and the reading was down nearly 30% year over year as affordability concerns remain. This consumer fatigue translated into a slower than expected gain in retail sales as consumers were more selective about purchases.
• U.S. military action in Venezuela adds to the ongoing geopolitical risks, prompting increased uncertainty as the possible implications for the market are weighed.
Venezuela’s oil reserves, and their relationship to China, its primary oil buyer, are of particular interest. In the short term the impact on energy prices is expected to relatively minimal, while the longer-term impacts depend on the future of Venezuela’s energy infrastructure and who controls it.
Global Central Bank Rates
Source: Bloomberg.
U.S. ISM Manufacturing & Services PMI
Source: Bloomberg.
40 45
50 55
60 65
Dec-21 Dec-22 Dec-23 Dec-24 Dec-25
Manufacturing Services
University of Michigan Consumer Sentiment
Source: Bloomberg.
2.3 QUARTERLY MARKET SUMMARY
For the Quarter Ended December 31, 2025
Multi-Asset Class Management
DOMESTIC EQUITY
• The S&P 500 Index (S&P) posted a 2.7% return in the fourth quarter (of 2025).
That equates to a return of 17.9% for the year.
• Within the S&P 500, the performance varied greatly across sectors, with nine of the 11 seeing positive returns. The best performing sectors were Healthcare (11.7%), Communication Services (7.3%), and Financials (2.0%).
Utilities saw a loss of (-1.4%) while Real Estate performed the worst, with a negative return (-2.9%).
• Positive returns were seen across all capitalizations with large caps, as represented by the Russell 1000 Index, returning 2.4% during the quarter while mid and small caps, as represented by the Russell Midcap and Russell 2000 indices returned 0.2% and 2.2% respectively. Value stocks outperformed growth stocks across all capitalizations.
• According to FactSet Earnings Insight as of December 22, 2025, analysts are projecting earnings growth of 8.3% in Q4 2025, up from an initial estimate of 7.2% in September. This is below the five- and 10-year average earnings growth rates, but remains relatively strong, and would mark the tenth consecutive quarter of year-over-year earnings growth for the index. The index has once again been supported by the technology space. For calendar year 2025, analysts are projecting year-over-year earnings growth of 12.3%. • At quarter end, the 12-month adjusted positive forward price-to-earnings (P/E) ratio (includes only positive earnings results for consistency) for the S&P 500 is 27.5, which is above the five year average of 23.3. The Russell 2000 Index, which represents small cap stocks, had an adjusted positive forward P/E ratio of 21.4, also above its five year average of 17.7.
Source: Bloomberg.
S&P 500 Index Performance by Sector
Periods Ended December 31, 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 0.71% 0.01% 1.53% 2.01% 11.68% 0.86% 1.42% 1.12% -2.87% 7.26% -1.40% YTD 6.04% 3.90% 8.68% 14.97% 14.60% 19.27% 24.04% 10.54% 3.15% 33.56% 16.04% 1 Year 6.04% 3.90% 8.68% 14.97% 14.60% 19.27% 24.04% 10.54% 3.15% 33.56% 16.04% -5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0 5
10 15
20 25
30 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25
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 December 31, 2025
Multi-Asset Class Management
INTERNATIONAL EQUITY
• Markets outside of the United States, as measured by the MSCI ACWI ex-U.S.
Index, outperformed domestic equities in the fourth quarter returning 5.1% for the quarter, with a year-to-date return of 32.4%, its highest return since 2009. • Seven of the 11 sectors posted positive returns for the quarter. The top performing sectors were Information Technology (11.0%), Materials (9.3%), and Utilities (7.9%). The worst performers for the quarter were Real Estate (-0.5%), Consumer Discretionary (-2.5%), and Communication Services (-6.9%). • Developed ex-U.S. markets, as represented by the MSCI EAFE Index, outperformed emerging markets (EM), as represented by the MSCI Emerging Market Index, returning 4.9% versus 4.7% for the quarter. While the U.S. Dollar (USD) strengthened somewhat during the quarter, the continued softness positively impacted returns from all international indices, as they are stated in USD. • Of the five largest-weighted countries in the MSCI EAFE Index, the MSCI Switzerland (9.8%) and MSCI United Kingdom (7.0%) indices outperformed the overall EAFE index. The MSCI France (3.4%), MSCI Japan (3.2%), and MSCI Germany (2.6%) indices underperformed.
• Of the five largest-weighted countries in EM, MSCI Korea (27.3%), MSCI Taiwan (10.4%), and MSCI Brazil (8.3%) outperformed the MSCI Emerging Markets index, while MSCI India (4.8%) performed in line and MSCI China (-7.4%) underperformed with notable negative returns. Both Korea and Taiwan continued their streak of double-digit returns supported by semiconductor names positively impacted by the artificial intelligence (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 2.6%, while the MSCI AC World ex-USA Value Index returned 7.6%. Within EM, value stocks (MSCI EM Value) returned 5.8% versus 3.1% for growth. Small caps, as represented by the MSCI ACWI ex-U.S. Small Cap Index posted a return of 3.0%. • Non-U.S. equity valuations increased in both emerging and developed markets. Both sit slightly above long-term averages. As of quarter-end, the MSCI EAFE’s Adjusted Positive Forward P/E stood at 17.8 versus a five year average of 15.6. MSCI EM ended the quarter with an Adjusted Positive Forward P/E ratio of 15.5, above its five year average of 13.2.
Source: Bloomberg.
MSCI ACWI ex-U.S. Sectors
Periods Ended December 31, 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 Real Estate Telecom Utilities QTD -2.50% 2.80% 4.87% 7.73% 7.45% 3.27% 11.04% 9.34% -0.53% -6.88% 7.89% YTD 15.52% 16.96% 22.68% 43.81% 16.16% 34.79% 40.58% 45.52% 18.04% 31.54% 36.51% 1 Year 15.52% 16.96% 22.68% 43.81% 16.16% 34.79% 40.58% 45.52% 18.04% 31.54% 36.51% -10%
0%
10%
20%
30%
40%
50%
8 10
12 14
16 18
20 22
24 26
Jan-21 Jan-22 Jan-23 Jan-24 Jan-25
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 December 31, 2025
Multi-Asset Class Management
FIXED INCOME
• The U.S. bond market, represented by the Bloomberg U.S. Aggregate Index, returned 1.1% during the fourth quarter.
• The Bloomberg U.S. Treasury Index closed the quarter returning 0.9%. As the Fed cut rates first in October and then again in December, the yield curve steepened slightly with rates falling in the short to intermediate spectrum while long term yields rose. 30-year Treasury yields rose to
4.8%, while the 2-year ended at 3.5%. 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 0.9% while High Yield bonds, as represented by the ICE BofA High Yield (HY) Index, returned 1.4%. Spreads remained relatively flat for High Yield corporates while they widened slightly for investment-grade corporates over the quarter. Both remain below their respective 10-year averages. Tailwinds of high profit margins, continued debt issuance, and ongoing mergers and acquisitions (M&A) activity points to positive corporate sentiment.
Source: Bloomberg.
Returns for Fixed-Income Segments
Periods Ended December 31, 2025
Source: Bloomberg.
U.S. Treasury Yield Curve
3.48%
3.73%
4.17%
4.85%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
12/31/2024
9/30/2025
12/31/2025
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 1.10% 0.90% 1.71% 0.84% 1.35%
YTD 7.30% 6.32% 8.58% 7.77% 8.50%
1 Year 7.30% 6.32% 8.58% 7.77% 8.50%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2.6 QUARTERLY MARKET SUMMARY
For the Quarter Ended December 31, 2025
Multi-Asset Class Management
ALTERNATIVES
• Real estate investment trusts (REITs), as measured by the MSCI U.S. REITs Index, returned -1.7% in the fourth quarter leading to a year-to-date return of 3.0%. Private real estate, as measured by the NCREIF Property Index, gained 1.2% in the second quarter of 2025, marking the third consecutive quarter of positive total returns as property value declines leveled off across most sectors. The “Other” category, which includes a wide variety of non-categorized property types including data centers was the top performer, returning 2.3%, while Hotels returned a marginally positive 0.1%. • Listed infrastructure, as measured by the MSCI World Core Infrastructure Index, returned 0.3% in the fourth quarter, down from a 4.9% return in the prior quarter.
According to PitchBook, Private infrastructure funds posted a return of -1.4% in Q2 2025. Over the longer term, they generated an annualized return of 9.9% for the five years ended Q2 2025. By the end of Q3 2025, 57 private infrastructure funds raised $123.9 billion, beating the funds raised during all of 2024 with one quarter remaining.
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 $383.5 billion as of March 31, 2025.
• By the end of Q3 2025,125 private debt funds raised $155.0 billion, with fundraising now on pace for another strong year by historical standards. Private debt dry powder remains above the long-term average at $598.8 billion as of March 31, 2025. According to Cliffwater, the performance of private debt funds continues to be strong but is softening, posting a return of 2.3% in Q2 2025. The asset class has generated an annualized return of 11.1% for the five years ended Q2 2025. • As of Q3 2025, 411 private equity funds raised $319.8 billion –as the slower pace of fundraising continues due to constrained distributions hindering 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 $1.8 trillion as of March 31, 2025. Exit tailwinds of lower borrowing costs and greater market clarity should aid fundraising efforts into 2026. PitchBook, private equity funds posted a return of -1.7% in Q2 2025. The asset class has generated an annualized return of
17.6% for the five years ended Q2 2025.
Source: NCREIF, PitchBook, Cliffwater, Cambridge Associate.
As of June 30, 2025, the most recent period for which all index data is available.
Returns for Private Capital Assets
Sources: Pitchbook.
* Total capital raised in 2025 as of September 30, 2025 - most recent period for which ALL fundraising data is available.
** Cumulative dry powder and total AUM as of March 31, 2025. *** Excluding open-end, evergreen fund vehicles.
Private Capital Fundraising & Dry Powder
Private Real Estate Infrastructure Private Debt Private Equity QTD 1.22% -1.42% 2.34% -1.70%
YTD 2.51% 1.47% 4.53% 0.26%
1 Year 4.30% 4.10% -1.07% 4.25%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
ClosedEnd Real
Estate
Infrastruct
ure
Private
Debt
Private
Equity
Venture
Capital
YTD Fundraising ($B)* $74.48 $123.87 $154.99 $319.84 $82.57 Dry Powder ($B)** $412.33 $383.51 $598.77 $1,754.25 $699.67 $0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$ Billions
2.7 QUARTERLY MARKET SUMMARY
For the Quarter Ended December 31, 2025
Multi-Asset Class Management
Inflation (U.S.):
• While headline inflation moved lower in Q4,
significant gaps in data collection due to the U.S.
government shutdown likely biased the data lower
and warrants attention.
• Lower shelter inflation continues to support
disinflation going forward although goods prices
continue to experience tariff passthroughs.
Economic Growth (Global):
• Benefits from the tax and reconciliation bill and
increases in anticipated AI capex are expected to
support U.S. growth in 2026.
• The effects of U.S. government shutdown expected
to be temporary and fully recouped in Q1 2026.
• Strong consumer spending and steadier trade
dynamics continue to support global growth.
Monetary Policy (Global):
• The Fed cut rates by 50 bps in Q4 but noted
continuing challenges in achieving its dual mandate.
• Markets view policy risks as skewed towards
additional easing, assuming a more dovish Chair
takes office in mid-2026 as expected.
• Major central banks have an accommodative policy
in place with the BOJ being the notable exception.
Labor Markets (U.S.):
• Labor market conditions continued to cool with net
new job creation close to zero. Initial jobless claims
and layoff rates remain low, easing some concerns
over labor weakness.
• The unemployment rate continued to tick higher,
while job openings declined and the quits rate
remains subdued, signaling reduced worker
leverage even as real wage growth remains positive.
Consumer Spending (U.S.):
• Consumer activity remained resilient through the
holiday shopping season, highlighting the
disconnect between slowing sentiment and activity.
• Consumer spending is dominated by higher-income
cohorts pointing to K-shaped economy.
• A significant correction in the equity market or a
material slowdown in the labor market are the
largest threats to consumer spending.
Financial Conditions (U.S.):
• Financial conditions eased as corporate earnings
exceeded expectations and tariff concerns abated
resulting in equities reaching new all-time highs and
credit spreads tightening to historical lows.
• Financial conditions expected to remain tailwind as
monetary policy eases, but any fiscal uncertainty
and geopolitical risks could reintroduce tighter
financial conditions over the next 6-12 months.
Political/Policy Risks:
• Some of the policy and trade related uncertainty
was resolved in 2025.
• The possibility of another U.S. government
shutdown, legal challenges to tariffs and ongoing
geopolitical uncertainty are negatives.
Valuations:
• U.S. equities and credit markets trade at valuations
that are expensive relative to their history.
• Resilient growth, strong earnings growth and higher
profit margins are supportive of the current
valuations while inflation and AI related exuberance
are not fully reflected in the current valuations.
Corporate Fundamentals:
• Earnings growth expectations are positive across
global equities with double digit growth expected
across U.S. and international equity benchmarks.
• In the U.S., M&A and capital spending pickup, tax
changes and rate cuts are positives while any tariff
related cost pressures need to be monitored.
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 (December 31, 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 December 31, 2025
Multi-Asset Class Management
Asset Class Our Q1 2026 Investment Outlook Comments
• US large caps returned double-digit returns in 2025 supported by supportive fiscal and monetary policy, strong earnings growth and continued support for AI related stocks.
• Looking ahead, resilient economic growth is expected to broaden market performance away from the top technology names (Mag-7) and towards smaller and mid cap names. Value stocks have been outperforming growth stocks recently led by economic growth tailwinds and capex expensing rules that provides favorable outlook for cyclical industries. • Small caps have recovered in the latter half of 2025 as Fed rate cuts, higher liquidity and improving earnings became tailwinds. While we hold a positive view on small caps, we expect to remain neutral until we see some recovery across employment and manufacturing indicators.
U.S. Equities
Large-Caps
Small-Caps
• International equities posted strong returns in 2025. Valuations are attractive relative to US equities but multiples look expensive relative to recent history. Earnings growth of ~13% expected in 2026. • Across Europe and China, we believe that there are structural/geopolitical issues that need to be addressed for long-term sustained outperformance. • Accommodative monetary policy, fiscal stimulus in certain regions and weaker USD are tailwinds but tariff driven uncertainty remains.
Non-U.S. Equities
Developed Markets
Emerging Markets
• Fed cut rates by 75bps in 2025 and has provided guidance for one more rate cut in 2026.
• Yield curve has steepened over 2025 while 10 year yields have stayed above 4.0%. We expect long term rates to be range-bound due to inflation expectations but are watching for any meaningful increase in yields that could lead to a risk-off sentiment.
• 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 underperformed broader equities in 2025. Looking ahead, continued economic growth and the recent rate cuts are expected to be tailwinds. • Along with diversified source of return, improving AI sentiment bodes well for data center buildout and utilities are long-term drivers 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 (December 31, 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 December 31, 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.
The views expressed within this material constitute the perspective and judgment of U.S. Bancorp Asset Management, Inc. 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 current opinion as of the date of issue and are also subject to change. Opinions and data presented are not necessarily indicative of future events or expected performance. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. No representation is made as to its accuracy or completeness.
PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset Management, Inc., which is the legal entity providing investment advisory services. U.S. Bancorp Asset Management, Inc. is a registered investment adviser, a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S. Bank N.A. is not responsible for and does not guarantee the products, services, or performance of U.S. Bancorp Asset Management, Inc.
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
Further distribution is not permitted without prior written consent.
2.10 Plan Performance Summary - Pension
3 Allocation
Market
Value
($)
%
Performance(%)
1 Quarter 2025 1Year
3 Years
5 Years
7 Years
10 Years
Since
Inception
Inception
Date
Total Portfolio 37,382,752 100.00 1.89 12.86 12.86 12.11 N/A N/A N/A 4.64 09/01/2021 Blended Benchmark - Pension 1.99 12.39 12.39 11.98 N/A N/A N/A 4.84 Domestic Equity 11,314,906 30.27 2.47 17.17 17.17 21.08 N/A N/A N/A 9.24 09/01/2021 Russell 3000 Index 2.40 17.15 17.15 22.25 13.15 16.64 14.29 10.49 Columbia Contrarian Core Inst3 2,197,275 5.88 2.61 17.51 17.51 24.27 14.26 17.94 14.39 20.31 02/01/2024 S&P 500 2.66 17.88 17.88 23.01 14.42 17.29 14.82 21.37
Putnam Core Equity Fund Y 1,039,863 2.78 3.61 17.31 17.31 23.83 15.87 18.37 15.50 15.83 10/01/2024 Schwab US Large-Cap ETF 7,512,169 20.10 2.35 17.42 17.42 22.99 13.69 17.09 14.66 16.25 10/01/2024 S&P 500 2.66 17.88 17.88 23.01 14.42 17.29 14.82 16.26
PIMCO RAE US Small Cap Fund 276,648 0.74 3.65 6.29 6.29 15.93 15.83 15.12 12.64 N/A 01/01/2026 Russell 2000 Value Index 3.26 12.59 12.59 11.73 8.88 10.09 9.27 N/A Russell 2000 Index 2.19 12.81 12.81 13.73 6.09 10.60 9.62 N/A Columbia Small Cap Growth Inst3 154,039 0.41 4.38 21.86 21.86 24.22 3.47 16.16 15.09 20.87 10/01/2024 Russell 2000 Growth Index 1.22 13.01 13.01 15.59 3.18 10.59 9.57 11.78 Russell 2000 Index 2.19 12.81 12.81 13.73 6.09 10.60 9.62 10.42 Emerald Growth Institutional 134,912 0.36 6.11 31.95 31.95 23.33 8.06 14.83 12.71 29.07 02/01/2024 Russell 2000 Growth Index 1.22 13.01 13.01 15.59 3.18 10.59 9.57 16.70 Russell 2000 Index 2.19 12.81 12.81 13.73 6.09 10.60 9.62 15.09 International Equity 5,845,269 15.64 4.03 29.43 29.43 15.48 N/A N/A N/A 5.30 09/01/2021 MSCI AC World ex USA (Net) 5.05 32.39 32.39 17.33 7.91 10.15 8.41 6.94 MFS International Growth R6 801,584 2.14 1.45 21.23 21.23 15.04 7.24 11.12 10.03 16.25 02/01/2024 MSCI AC World ex USA (Net) 5.05 32.39 32.39 17.33 7.91 10.15 8.41 19.68 Fidelity International Index 2,371,931 6.34 4.59 31.96 31.96 17.42 9.13 10.74 8.42 18.94 07/01/2024 MSCI EAFE (net) 4.86 31.22 31.22 17.22 8.92 10.54 8.18 18.71 Goldman Sachs GQG Ptnrs Intl Opportunities 852,221 2.28 3.94 20.84 20.84 15.80 9.20 12.60 N/A 6.26 07/01/2024 MSCI AC World ex USA (Net) 5.05 32.39 32.39 17.33 7.91 10.15 8.41 20.45 Fidelity Emerging Markets Index Fund 1,819,533 4.87 4.55 33.94 33.94 16.13 3.95 7.80 8.26 14.18 08/01/2025 MSCI EM (net) 4.73 33.57 33.57 16.40 4.20 8.06 8.42 13.66 Asset Allocation & Performance
PARS/City of San Leandro 115 Pens As of December 31, 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 December 31, 2025 Allocation
Market
Value
($)
%
Performance(%)
1 Quarter 2025 1Year
3 Years
5 Years
7 Years
10 Years
Since
Inception
Inception
Date
Other Growth 1,824,841 4.88 0.04 11.33 11.33 N/A N/A N/A N/A 10.72 02/01/2024 Cohen & Steers Inst Realty Shares 879,895 2.35 -2.57 3.09 3.09 7.27 5.77 8.02 6.48 7.37 06/01/2024 MSCI US REIT Index -1.69 2.95 2.95 8.39 6.58 6.94 5.71 9.50 Lazard Global Listed Infrastructure Inst 491,445 1.31 4.97 23.86 23.86 13.59 11.64 10.61 9.92 16.77 10/01/2024 MSCI World Core Infrastructure Index (Net) 0.32 15.85 15.85 8.41 6.56 8.11 8.32 6.79 NYLI CBRE Global Infrastructure 453,502 1.21 0.16 15.55 15.55 8.96 6.96 8.93 8.47 12.16 06/01/2024 MSCI World Core Infrastructure Index (Net) 0.32 15.85 15.85 8.41 6.56 8.11 8.32 13.15 Fixed Income 17,285,407 46.24 1.10 7.56 7.56 5.56 N/A N/A N/A 0.44 09/01/2021 Blmbg. U.S. Aggregate 1.10 7.30 7.30 4.66 -0.36 1.99 2.01 -0.26 Baird Aggregate Bond Inst 4,721,727 12.63 1.01 7.36 7.36 5.19 -0.13 2.41 2.43 5.80 03/01/2024 iShares Core US Aggregate Bond ETF 3,835,092 10.26 1.00 7.19 7.19 4.69 -0.38 1.96 1.97 5.55 03/01/2024 Blmbg. U.S. Aggregate 1.10 7.30 7.30 4.66 -0.36 1.99 2.01 5.60 Dodge & Cox Income 2,926,545 7.83 1.28 8.32 8.32 6.06 1.05 3.42 3.35 5.52 02/01/2024 PGIM Total Return Bond R6 2,926,920 7.83 1.14 7.79 7.79 6.17 0.15 2.76 3.01 5.49 02/01/2024 Blmbg. U.S. Aggregate 1.10 7.30 7.30 4.66 -0.36 1.99 2.01 4.57 Voya Intermediate Bond 1,652,919 4.42 1.07 7.62 7.62 5.85 0.16 2.65 2.71 4.38 05/01/2025 Blmbg. U.S. Aggregate 1.10 7.30 7.30 4.66 -0.36 1.99 2.01 3.99 NYLI MacKay High Yield Corp Bond Fund 1,222,203 3.27 1.26 7.10 7.10 8.71 4.53 5.81 6.14 7.57 03/01/2024 ICE BofA US High Yield Index 1.35 8.50 8.50 10.03 4.50 6.10 6.45 8.96 Cash Equivalent 1,112,327 2.98 0.98 4.23 4.23 4.64 N/A N/A N/A 3.55 09/01/2021 ICE BofA 3 Month U.S. T-Bill 0.97 4.18 4.18 4.81 3.17 2.68 2.18 3.66 First American Government Obligation - X 1,112,327 2.98 0.98 4.23 4.23 4.81 3.18 2.62 N/A 4.68 02/01/2024 ICE BofA 3 Month U.S. T-Bill 0.97 4.18 4.18 4.81 3.17 2.68 2.18 4.69 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 24.90 26.86 -19.44 26.74 20.90 31.40 -4.52 21.91 11.78 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 PIMCO RAE US Small Cap Fund 22.08 20.06 -4.64 40.37 6.88 20.22 -11.66 9.27 27.14 N/A 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 December 31, 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 December 31, 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 -10.86 -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 11.13 -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 4.05 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 5.02 1.52 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
10/01/2025
Net Flows Return On
Investment
Market Value
As of
12/31/2025
Total Portfolio 36,720,378 (25,429) 687,802 37,382,752
YTD
Market Value
As of
01/01/2025
Net Flows Return On
Investment
Market Value
As of
12/31/2025
Total Portfolio 32,801,584 346,732 4,234,436 37,382,752 Account Reconciliation
PARS/City of San Leandro 115 Pens As of December 31, 2025
3.5 Plan Performance Summary - OPEB
4 Allocation
Market
Value
($)
%
Performance(%)
1 Quarter 2025 1Year
3 Years
5 Years
7 Years
10 Years
Since
Inception
Inception
Date
Total Portfolio 24,636,419 100.00 1.54 10.73 10.73 9.42 3.57 5.98 5.30 5.09 08/01/2015 Blended Benchmark - OPEB 1.64 10.30 10.30 9.12 N/A N/A N/A N/A Domestic Equity 4,588,218 18.62 2.47 17.19 17.19 21.04 12.14 15.41 13.18 12.75 08/01/2015 Russell 3000 Index 2.40 17.15 17.15 22.25 13.15 16.64 14.29 13.34 Columbia Contrarian Core Inst3 941,786 3.82 2.61 17.51 17.51 24.27 14.26 17.94 14.39 20.31 02/01/2024 S&P 500 2.66 17.88 17.88 23.01 14.42 17.29 14.82 21.37
Putnam Core Equity Fund Y 418,463 1.70 3.61 17.31 17.31 23.83 15.87 18.37 15.50 15.83 10/01/2024 Schwab US Large-Cap ETF 3,002,725 12.19 2.35 17.42 17.42 22.99 13.69 17.09 14.66 16.25 10/01/2024 S&P 500 2.66 17.88 17.88 23.01 14.42 17.29 14.82 16.26
PIMCO RAE US Small Cap Fund 110,064 0.45 3.65 6.29 6.29 15.93 15.83 15.12 12.64 N/A 01/01/2026 Russell 2000 Value Index 3.26 12.59 12.59 11.73 8.88 10.09 9.27 N/A Russell 2000 Index 2.19 12.81 12.81 13.73 6.09 10.60 9.62 N/A Columbia Small Cap Growth Inst3 61,404 0.25 4.38 21.86 21.86 24.22 3.47 16.16 15.09 20.87 10/01/2024 Russell 2000 Growth Index 1.22 13.01 13.01 15.59 3.18 10.59 9.57 11.78 Russell 2000 Index 2.19 12.81 12.81 13.73 6.09 10.60 9.62 10.42 Emerald Growth Institutional 53,775 0.22 6.11 31.95 31.95 23.33 8.06 14.83 12.71 29.07 02/01/2024 Russell 2000 Growth Index 1.22 13.01 13.01 15.59 3.18 10.59 9.57 16.70 Russell 2000 Index 2.19 12.81 12.81 13.73 6.09 10.60 9.62 15.09 International Equity 2,342,991 9.51 4.03 29.32 29.32 15.45 6.62 10.00 8.24 7.72 08/01/2015 MSCI AC World ex USA (Net) 5.05 32.39 32.39 17.33 7.91 10.15 8.41 7.08 MFS International Growth R6 333,703 1.35 1.45 21.23 21.23 15.04 7.24 11.12 10.03 16.25 02/01/2024 MSCI AC World ex USA (Net) 5.05 32.39 32.39 17.33 7.91 10.15 8.41 19.68 Fidelity International Index 945,063 3.84 4.59 31.96 31.96 17.42 9.13 10.74 8.42 18.94 07/01/2024 MSCI EAFE (net) 4.86 31.22 31.22 17.22 8.92 10.54 8.18 18.71 Goldman Sachs GQG Ptnrs Intl Opportunities 337,796 1.37 3.94 20.84 20.84 15.80 9.20 12.60 N/A 6.26 07/01/2024 MSCI AC World ex USA (Net) 5.05 32.39 32.39 17.33 7.91 10.15 8.41 20.45 Fidelity Emerging Markets Index Fund 726,430 2.95 4.55 33.94 33.94 16.13 3.95 7.80 8.26 14.18 08/01/2025 MSCI EM (net) 4.73 33.57 33.57 16.40 4.20 8.06 8.42 13.66 Asset Allocation & Performance
PARS/City of San Leandro 115 - OPEB As of December 31, 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 December 31, 2025 Allocation
Market
Value
($)
%
Performance(%)
1 Quarter 2025 1Year
3 Years
5 Years
7 Years
10 Years
Since
Inception
Inception
Date
Other Growth 725,307 2.94 0.16 11.46 11.46 N/A N/A N/A N/A 10.80 02/01/2024 Cohen & Steers Inst Realty Shares 332,914 1.35 -2.57 3.09 3.09 7.27 5.77 8.02 6.48 7.37 06/01/2024 MSCI US REIT Index -1.69 2.95 2.95 8.39 6.58 6.94 5.71 9.50 Lazard Global Listed Infrastructure Inst 203,770 0.83 4.97 23.86 23.86 13.59 11.64 10.61 9.92 16.77 10/01/2024 MSCI World Core Infrastructure Index (Net) 0.32 15.85 15.85 8.41 6.56 8.11 8.32 6.79 NYLI CBRE Global Infrastructure 188,624 0.77 0.16 15.55 15.55 8.96 6.96 8.93 8.47 12.16 06/01/2024 MSCI World Core Infrastructure Index (Net) 0.32 15.85 15.85 8.41 6.56 8.11 8.32 13.15 Fixed Income 16,254,076 65.98 1.10 7.57 7.57 5.56 0.46 2.48 2.43 2.29 08/01/2015 Blmbg. U.S. Aggregate 1.10 7.30 7.30 4.66 -0.36 1.99 2.01 1.92 Baird Aggregate Bond Inst 4,553,917 18.48 1.01 7.36 7.36 5.19 -0.13 2.41 2.43 5.80 03/01/2024 iShares Core US Aggregate Bond ETF 3,334,094 13.53 1.00 7.19 7.19 4.69 -0.38 1.96 1.97 5.55 03/01/2024 Blmbg. U.S. Aggregate 1.10 7.30 7.30 4.66 -0.36 1.99 2.01 5.60 Dodge & Cox Income 2,580,989 10.48 1.28 8.32 8.32 6.06 1.05 3.42 3.35 5.52 02/01/2024 PGIM Total Return Bond R6 3,081,037 12.51 1.14 7.79 7.79 6.17 0.15 2.76 3.01 5.49 02/01/2024 Blmbg. U.S. Aggregate 1.10 7.30 7.30 4.66 -0.36 1.99 2.01 4.57 Voya Intermediate Bond 1,549,868 6.29 1.07 7.62 7.62 5.85 0.16 2.65 2.71 4.38 05/01/2025 Blmbg. U.S. Aggregate 1.10 7.30 7.30 4.66 -0.36 1.99 2.01 3.99 NYLI MacKay High Yield Corp Bond Fund 1,154,170 4.68 1.26 7.10 7.10 8.71 4.53 5.81 6.14 7.57 03/01/2024 ICE BofA US High Yield Index 1.35 8.50 8.50 10.03 4.50 6.10 6.45 8.96 Cash Equivalent 725,827 2.95 0.98 4.23 4.23 4.65 3.07 2.54 2.04 1.96 08/01/2015 ICE BofA 3 Month U.S. T-Bill 0.97 4.18 4.18 4.81 3.17 2.68 2.18 2.10 First American Government Obligation - X 725,827 2.95 0.98 4.23 4.23 4.81 3.18 2.62 N/A 4.68 02/01/2024 ICE BofA 3 Month U.S. T-Bill 0.97 4.18 4.18 4.81 3.17 2.68 2.18 4.69 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 24.90 26.86 -19.44 26.74 20.90 31.40 -4.52 21.91 11.78 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 PIMCO RAE US Small Cap Fund 22.08 20.06 -4.64 40.37 6.88 20.22 -11.66 9.27 27.14 N/A 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 December 31, 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 December 31, 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 -10.86 -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 11.13 -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 4.05 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 5.02 1.52 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
10/01/2025
Net Flows Return On
Investment
Market Value
As of
12/31/2025
Total Portfolio 24,282,843 (17,624) 371,199 24,636,419
YTD
Market Value
As of
01/01/2025
Net Flows Return On
Investment
Market Value
As of
12/31/2025
Total Portfolio 22,322,588 (75,747) 2,389,578 24,636,419 Account Reconciliation
PARS/City of San Leandro 115 - OPEB As of December 31, 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.
PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset Management, Inc., which is the legal entity providing investment advisory services. U.S. Bancorp Asset Management, Inc. is a registered investment adviser, a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S. Bank N.A. is not responsible for and does not guarantee the products, services, or performance of U.S. Bancorp Asset Management, Inc.
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
For more information regarding PFMAM’s services or entities, please visit www.pfmam.com. © 2025 USBAM.. Further distribution is not permitted without prior written consent.
IMPORTANT DISCLOSURES