INVESTMENT REPORT
City of Stockton | As of December 31, 2025
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:
For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.
ATTACHMENT B
TABLE OF CONTENTS
City of Stockton | As of December 31, 2025
ECONOMIC UPDATE
ACCOUNT PROFILE
CONSOLIDATED INFORMATION
PORTFOLIO HOLDINGS
TRANSACTIONS
ATTACHMENT B
ECONOMIC UPDATE
ATTACHMENT B
The near-term economic outlook continues to be distorted by the data delays from the government shutdown. Recently released government data—reflecting conditions from two to three months ago—indicate inflation remains moderately above the Federal Reserve’s target, while labor market conditions have continued to soften. As the flow of economic data normalizes, the Chandler team expects further yield curve steepening as the Federal Reserve moves the policy rate toward a more neutral range. U.S. trade and fiscal policy also remain sources of elevated market uncertainty.
The Federal Reserve's December Federal Open Market Committee meeting concluded with the third consecutive 25-basis-point rate cut in 2025, lowering the target range to 3.50%–3.75%. However, policymakers remain divided on the path forward. Four Fed governors project one additional 25-basis-point cut in 2026, another four anticipate no furthereasing, eight expect multiple cuts, and three call for a potential rate hike. Chair Jerome Powell noted that the Fed is now “well placed to wait and see” how labor market conditions and inflation evolve in the near term.
The US Treasury yield curve steepened in December, as the 2-year Treasury yield dropped2 basis points to 3.48%, the 5-year Treasury was up 13 basis points to 3.73%, and the 10-year Treasury yield was 15 basis points higher at 4.17%. The spread between the 2-year and 10- year Treasury yield points on the curve was 17 basis points wider from Novemberat +69 basis points at December month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was +33 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was +54 basis points in December versus +21 basis points in November.
ECONOMIC UPDATE
ATTACHMENT B
-400
-200
0 200
400
600
800
1,000MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
The delayed Nonfarm Payrolls reports for October and November were released together on December 16. October’s data revealed unexpected weakness, with payrolls declining by 105,000 jobs, largely due to the removal of thousands of federal employees who had accepted deferred resignation offers under the Trump administration. In November, payrolls partially recovered with a gain of 64,000 jobs.
Notably, the unemployment rate rose to 4.6% in November, up from 4.4% in the most recent data available from September.
Source: US Department of Labor Source: US Department of Labor
EMPLOYMENT
ATTACHMENT B
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In Thousands (000's)
The Labor Department’s Job O penings and Labor Turnover Survey (JOLTS) showed an increase to 7.670 million new job openings in October, a slight pick-up from the 7.658 million in September.The rise marked the highest level of available jobs in five months. However, in October hiring declined by 218,000 while layoffs rose to 1.85 million signaling further softening in the labor market. Job openings indicate a ratio of approximately 1 job for each unemployed individual, representing a relatively balanced labor market.
Source: US Department of Labor
JOB OPENINGS & LABOR TURNOVER SURVEY
ATTACHMENT B
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Cor e Deflator Y OY % Change
Fed Target
YOY (%) Change
Inflation came in lower tha n expected in November,with the Consumer Price Index (CPI) rising 2.7% year over year and core CPI easing to
2.6%. Notably, both Owners’ Equivalent Rent and Rent of Primary Residence contributed to the slowdown in services inflation. Shelter costs typically lag broader market trends by 12 to 18 months. Services, meanwhile, have remained the dominant driver of inflation throughout the post-pandemic period. The Personal Consumption Expenditures (PCE) Index for September, released on December 5, showed headline inflation up 0.3% from August and 2.8% year over year. Core PCE rose 0.2% on the month and 2.8% on an annual basis.
Source: US Department of Labor Source: US Department of Commerce
INFLATION
ATTACHMENT B
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Retail Sales YOY % Change
YOY (%) Change
October Retail Sales, rel eased with a one-monthdelay, were flat from the prior month but up 3.5% year over year. Eight of thirteen major categories posted gains, while motor vehicle sales declined following the expiration of federal tax incentives for electric vehicles, and gas station sales weakened amid lower fuel prices. The government shutdown may have weighed on consumer confidence regarding jobs, incomes, and overall financial conditions, both current and in the future. The Conference Board’s Consumer Confidence Index declined to
89.1 in December from an upwardly revised 92.9 in November, marking its fifth consecutive monthly drop. Consumers remained pessimistic about both business conditions and the labor market. 0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)
CONSUMER
ATTACHMENT B
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25
0.00 0.25
0.50 0.75
1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) declined 0.3% in September, marking its second consecutive monthly decrease after a revised 0.3% d rop in August. On a year-over-year basis, the index fell 3.3%. According to the Conference Board, weakening expectations among consumers and businesses contributed most to the LEI’s overall decline. The index continues to signal slower economic growth through the end of 2025 and into 2026. The Chicago Fed National Activity Index (CFNAI) came in at -0.21 in September, following a downwardly revised -0.31 in August, signaling that U.S. economic activity remained below its historical trend for the sixth consecutive month. The three-month moving average ticked down to -0.21 in September from -0.18 in August, reinforcing signs of ongoing below-trend national growth. Employment-related indicators turned slightly positive, contributing +0.01 in September after a -0.11 result in August.
Source: The Conference Board Source: Federal Reserve Bank of Chicago
LEADING INDICATORS OF ECONOMIC ACTIVITY
ATTACHMENT B
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
The S&P Cotality Case-Shiller 20-City Composite Home Price Index rose 1.3% year over year in October, slightly down from a 1.4% gain in September and marking the slowest annual increase since mid 2023. Short-termmomentum also weakened, with 80 percent of the 20 tracked markets recording month-over-monthprice declines on a non-seasonally adjusted basis. Existing home sales edged higher in November to a pace of 4.13 million units, reflecting only modest momentum despite recent rate relief. The Freddie Mac 30-year fixed mortgage rate averaged 6.23% at November month end.
Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change
HOUSING
ATTACHMENT B
40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services
EXPANDING
CONTRACTING
The Institute for Supply Management’s (ISM) manufacturing index registered 48.2 percent in November, down 0.5 from 48.7 in October.
Manufacturing activity has remained in contraction for 35 of the past 37 months, as readings below 50 signal contraction and those above 50 indicate expansion. The sector continues to be weighed down by trade policy uncertainty and elevated productioncosts, with factory orders declining at the fastest pace since July. In contrast, the ISM services index sustained its expansionary momentum,rising to 52.6 in Novemberfrom 52.4 in October. Growthin Business Activity and New Orders supported thegain, though respondents cited tariffs and the recent government shutdown as persistent headwinds.
Source: Institute for Supply Management
SURVEY BASED MEASURES
ATTACHMENT B
Components of GDP 12/24 3/25 6/ 25 9/25
2.6% 0.4% 1.7% 2.4%
-1.3% 3.8% -2.7% 0.0%
-0.1% -4.7% 4.8% 1.6%
0.3% -0.4% -0.4% 0.2%
0.3% 0.2% 0.3% 0.2%
1.9% -0.6% 3.8% 4.3%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
State and Local (Consumption and Gross
Investment)
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce The U.S. inflation adj usted gross domestic product (GDP) report demonstrated continued strength in the third quarter, with the first estimate showing a 4.3% annualized quarter-over-quarterincrease, up from 3.8% in the second quarter. Consumer spending accelerated to 3.5% from 2.5%, while exports contributed 1.59 percentage points to growth—both key drivers of the quarter’s performance. The stronger-than-expected result represented the fastest pace of U.S. economic expansion in two years.
GROSS DOMESTIC PRODUCT (GDP)
ATTACHMENT B
Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Reserve lowered its benchmark interest rate by a quarter point to a target range of 3.50% to 3.75% at its December meeting, citing concerns about emerging weakness in the labor market. A few policymakers dissented, arguing that tighter monetary policy may still be warranted to ensure progress on price stability. Beginning December 1, the Fed also halted its balance sheet runoff, announcing that principal and interest payments from its holdings will be reinvested in Treasury securities to maintain ample reserves and support market stability.
FEDERAL RESERVE
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Effective Federal Funds Rate
Recession
Yield (%)
ATTACHMENT B
Source: Bloomberg Source: Bloomberg
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Yield Curve
Dec-25
Sep-25
Dec-24
Yield (%)
At the end of December, the 2-year yield was 77 basis points lower, and the 10-year yield was 40 basis points lower, year-over-year. The spread between the 2-year and 10-year Treasury yield points on the curve increased to +69 basis points at December month-endversus +52 basis points at November month-end. The prior 2-year/10-year yield curve inversion, which spanned from July 2022 to August 2024, was historically long. The average historical spread (since 2005) is about +95 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was +54 basis points in December versus +21 basis points in November.
BOND YIELDS
ATTACHMENT B
ACCOUNT PROFILE
ATTACHMENT B
OBJECTIVES
City of Stockton | As of December 31, 2025
Investment Objectives
Safety of principal is the foremost objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and econmic cycles, taking into account the investment risk constraints and liquidity needs.
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.
Strategy
In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds.
ATTACHMENT B
STATEMENT OF COMPLIANCE
City of Stockton ConsAgg | Account #10021 | As of December 31, 2025 Rules Name Limit Actual Compliance
Status Notes
AGENCY MORTGAGE SECURITIES
Max % (MV) 20.0 7.4 Compliant
Max % Issuer (MV; Agencies & Agency CMOs) 20.0 5.0 Compliant Max Maturity (Years) 10.0 4.1 Compliant
ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS) 20.0 9.0 Compliant
Max % Issuer (MV) 5.0 1.4 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA by 1) 0.0 0.0 Compliant
BANKERS' ACCEPTANCES
Max % (MV) 40.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant
CERTIFICATE OF DEPOSIT PLACEMENT SERVICE
(CDARS)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 0.0 0.0 Compliant
COLLATERALIZED TIME DEPOSITS (NON-
NEGOTIABLE CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
COMMERCIAL PAPER
Max % (MV) 40.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Co mpliant
CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 26.7 Compliant
Max % Issuer (MV) 5.0 1.8 Compliant
ATTACHMENT B
STATEMENT OF COMPLIANCE
City of Stockton ConsAgg | Account #10021 | As of December 31, 2025 Rules Name Limit Actual Compliance
Status Notes
Max Maturity (Years) 5 4 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
FEDERAL AGENCIES
Max % (MV) 100.0 8.2 Compliant
Max % Issuer (MV; Agencies & Agency CMOs) 100.0 5.0 Compliant Max Callables (MV) 20.0 0.0 Compliant
Max Maturity (Years) 10 8 Compliant
LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV) 75.0 0.0 Compliant
MONEY MARKET MUTUAL FUNDS
Max % (MV) 20.0 0.9 Compliant
Max % Issuer (MV) 20.0 0.9 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant
MORTGAGE -BACKED SECURITIES (NON-AGENCY)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA by 1) 0.0 0.0 Compliant
MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max % (MV) 30.0 1.1 Compliant
Max % Issuer (MV) 5.0 1.1 Compliant
Max Maturity (Years) 10 6 Com pliant
Min Rating (A- by 1) 0.0 0.0 Compliant
MUNICIPAL SECURITIES (CA, OTHER STATES)
Max % (MV) 30.0 0.2 Compliant
Max % Issuer (MV) 5.0 0.2 Compliant
ATTACHMENT B
STATEMENT OF COMPLIANCE
City of Stockton ConsAgg | Account #10021 | As of December 31, 2025 Rules Name Limit Actual Compliance
Status Notes
Max Maturity (Years) 10 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit) 0.0 0.0 Compliant
REPURCHASE AGREEMENTS
Max Maturity (Years) 1.0 0.0 Compliant
SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 10.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 46.4 Compliant
Max Maturity (Years) 10 6 Compliant
ATTACHMENT B
PORTFOLIO CHARACTERISTICS
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Benchmark* 12/31/2025
Portfolio
9/30/2025
Portfolio
Average Maturity (yrs) 2.66 3.01 3.07
Average Modified Duration 2.48 2.54 2.56
Average Purchase Yield 3.85% 3.79%
Average Market Yield 3.61% 3.79% 3.94%
Average Quality** AA AA AA
Total Market Value 352,592,890 348,603,978
*Benchmark: ICE BofA 1-5 Year Gov/Corp A or better
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch.
ATTACHMENT B
SECTOR DISTRIBUTION
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Sector as a Percentage of Market Value
Sector 12/31/2025 09/30/2025
US Treasury 46.60% 45.84%
Corporate 26.87% 26.42%
ABS 9.08% 9.46%
Agency 8.29% 12.46%
Agency CMBS 7.48% 5.11%
Muni Bonds 1.25% 0.16%
Money Mkt Fd 0.42% 0.54%
ATTACHMENT B
ISSUERS
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Issuer Investment Type % Portfolio
United States US Treasury 46.60%
FHLMC Agency CMBS 7.48%
Farm Credit System Agency 5.02%
Federal Home Loan Banks Agency 2.49%
State Street Corporation Corporate 1.78%
JPMorgan Chase & Co. Corporate 1.71%
Bank of America Corporation Corporate 1.59%
Morgan Stanley Corporate 1.51%
American Express Credit Master Trust ABS 1.43%
Chase Issuance Trust ABS 1.42%
Caterpillar Inc. Corporate 1.17%
The Home Depot, Inc. Corporate 1.17%
UnitedHealth Group Incorporated Corporate 1.13%
Visa Inc. Corporate 1.13%
BMW Vehicle Owner Trust ABS 1.12%
State of California Muni Bonds 1.10%
PACCAR Inc Corporate 1.05%
National Rural Utilities Cooperative Corporate 1.03%
New York Life Insurance Company Corporate 1.02%
American Honda Finance Corporation Corporate 1.01%
The Charles Schwab Corporation Corporate 0.98%
Cisco Systems, Inc. Corporate 0.88%
Mastercard Incorporated Corporate 0.88%
Massachusetts Mutual Life Insurance Corporate 0.87%
Hyundai Auto Receivables Trust ABS 0.85%
Prologis, Inc. Corporate 0.85%
Honda Auto Receivables Owner Trust ABS 0.80%
State of Tennessee Agency 0.78%
Metropolitan Life Global Funding I Corporate 0.77%
John Deere Own er Trust ABS 0.76%
ATTACHMENT B
ISSUERS
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Issuer Investment Type % Portfolio
Toyota Motor Corporation Corporate 0.74%
Verizon Master Trust ABS 0.73%
American Express Company Corporate 0.72%
The Progressive Corporation Corporate 0.67%
Eli Lilly and Company Corporate 0.66%
Northern Trust Corporation Corporate 0.63%
Public Storage OP, LP Corporate 0.60%
Target Corporation Corporate 0.60%
Deere & Company Corporate 0.58%
Merck & Co., Inc. Corporate 0.58%
Toyota Auto Receivables Owner Trust ABS 0.57%
PepsiCo, Inc. Corporate 0.57%
WF Card Issuance Trust ABS 0.52%
Bank of America Credit Card Trust ABS 0.47%
Federated Hermes, Inc. Money Mkt Fd 0.42%
GM Financial Automobile Leasing Trus ABS 0.40%
State of New Jersey Muni Bonds 0.16%
Cash Cash 0.00%
TOTAL 100.00%
ATTACHMENT B
QUALITY DISTRIBUTION
Rating 12/31/2025 09/30/2025
AAA 7.75% 7.99%
AA 65.40% 62.88%
A 21.27% 20.74%
A-1+ 1.69% 4.23%
NA 3.89% 4.17%
Rating 12/31/2025 09/30/2025
Aaa 6.72% 5.73%
Aa 67.99% 66.91%
A 19.43% 18.89%
P-1 1.69% 4.23%
NA 4.16% 4.23%
Rating 12/31/2025 09/30/2025
AAA 13.31% 12.88%
AA 63.58% 62.03%
A 12.16% 11.56%
F1+ 1.69% 4.23%
NA 9.26% 9.31%
City of Stockton Reserve | Account #10020 | As of December 31, 2025 S&P Rating Moody’s Rating Fitch Rating
ATTACHMENT B
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 11.6% 5.9% 4.6% 14.3% 22.0% 24.6% 10.9% 6.0% 0.0% ICE BofA 1-5 Year Gov/Corp A or better 0.0% 0.0% 2.6% 34.8% 28.5% 22.0% 12.1% 0.0% 0.0%
DURATION DISTRIBUTION
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Portfolio Compared to the Benchmark
ATTACHMENT B
3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception
TOTAL RATE OF RETURN
City of Stockton Reserve 1.15% 6.12% 4.94% 4.83% 3.76%
ICE BofA 1-5 Year Gov/Corp A or better 1.12% 5.84% 4.70% 4.62% 3.44% Basis Point Fee* 0.01% 0.04% 0.03% 0.03% 0.03%
Net of Fees 1.15% 6.08% 4.91% 4.80% 3.73%
3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception*
MARKET VALUE BASIS EARNINGS
Income Earned 3,744,803 12,125,451 20,269,470 25,982,050 27,203,420 Change in Market Value 277,986 8,197,254 12,415,589 20,700,659 2,698,302 TOTAL DOLLAR RETURN 4,022,789 20,322,704 32,685,059 46,592,709 29,901,722
INVESTMENT PERFORMANCE
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Total and Realized Rate of Return : Inception | 08/01/2022 *Periods over 1 year are annualized.
Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. Realized rate of return: A measure of a portfolio’s return over time. It is the internal rate which equates the beginning book value of the portfolio with the ending book value; it includes interest earnings, realized gains and losses in the portfolio.
ATTACHMENT B
HISTORICAL AVERAGE PURCHASE YIELD
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Purchase Yield as of 12/31/25 = 3.85%
ATTACHMENT B
PORTFOLIO CHARACTERISTICS
City of Stockton Enhanced Cash | Account #11194 | As of December 31, 2025 Benchmark* 12/31/2025
Portfolio
9/30/2025
Portfolio
Average Maturity (yrs) 0.16 0.00 0.00
Average Modified Duration 0.15 0.00 0.00
Average Purchase Yield 3.62% 4.01%
Average Market Yield 3.63% 5.17% 4.01%
Average Quality** AA+ AAA AAA
Total Market Value 1,807,248 1,800,975
*Benchmark: ICE BofA 3-Month US Treasury Bill Index
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch.
ATTACHMENT B
SECTOR DISTRIBUTION
City of Stockton Enhanced Cash | Account #11194 | As of December 31, 2025 Sector as a Percentage of Market Value
Sector 12/31/2025 09/30/2025
Money Mkt Fd 100.00% 100.00%
ATTACHMENT B
ISSUERS
City of Stockton Enhanced Cash | Account #11194 | As of December 31, 2025 Issuer Investment Type % Portfolio
Federated Hermes, Inc. Money Mkt Fd 99.69%
Cash Cash 0.31%
TOTAL 100.00%
ATTACHMENT B
QUALITY DISTRIBUTION
Rating 12/31/2025 09/30/2025
AAA 100.00% 100.00%
Rating 12/31/2025 09/30/2025
Aaa 100.00% 100.00%
Rating 12/31/2025 09/30/2025
AAA 100.00% 100.00%
City of Stockton Enhanced Cash | Account #11194 | As of December 31, 2025 S&P Rating Moody’s Rating Fitch Rating
ATTACHMENT B
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% ICE BofA 3-Month US Treasury Bill Index 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
DURATION DISTRIBUTION
City of Stockton Enhanced Cash | Account #11194 | As of December 31, 2025 Portfolio Compared to the Benchmark
ATTACHMENT B
3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception
TOTAL RATE OF RETURN
City of Stockton Enhanced Cash 0.97% 4.19% 4.60%
ICE BofA 3-Month US Treasury Bill Index 0.97% 4.18% 4.56% Basis Point Fee* 0.01% 0.06% 0.05%
Net of Fees 0.96% 4.13% 4.54%
3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception*
MARKET VALUE BASIS EARNINGS
Income Earned 17,813 951,865 1,813,667
Change in Market Value 0 (3,460) 0
TOTAL DOLLAR RETURN 17,813 (948,405) 1,813,667
INVESTMENT PERFORMANCE
City of Stockton Enhanced Cash | Account #11194 | As of December 31, 2025 Total and Realized Rate of Return : Inception | 05/17/2024 *Periods over 1 year are annualized.
Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. Realized rate of return: A measure of a portfolio’s return over time. It is the internal rate which equates the beginning book value of the portfolio with the ending book value; it includes interest earnings, realized gains and losses in the portfolio.
ATTACHMENT B
HISTORICAL AVERAGE PURCHASE YIELD
City of Stockton Enhanced Cash | Account #11194 | As of December 31, 2025 Purchase Yield as of 12/31/25 = 3.62%
ATTACHMENT B
CONSOLIDATED INFORMATION
ATTACHMENT B
PORTFOLIO CHARACTERISTICS
City of Stockton ConsAgg | Account #10021 | As of December 31, 2025 12/31/2025
Portfolio
9/30/2025
Portfolio
Average Maturity (yrs) 3.00 3.05
Average Modified Duration 2.52 2.54
Average Purchase Yield 3.85% 3.79%
Average Market Yield 3.80% 3.94%
Average Quality** AA AA+
Total Market Value 354,400,138 350,404,953
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch.
ATTACHMENT B
SECTOR DISTRIBUTION
City of Stockton ConsAgg | Account #10021 | As of December 31, 2025 Sector as a Percentage of Market Value
Sector 12/31/2025 09/30/2025
US Treasury 46.36% 45.60%
Corporate 26.74% 26.29%
ABS 9.04% 9.41%
Agency 8.25% 12.40%
Agency CMBS 7.44% 5.09%
Muni Bonds 1.25% 0.16%
Money Mkt Fd 0.93% 1.05%
ATTACHMENT B
PORTFOLIO HOLDINGS
ATTACHMENT B
HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
36271VAD9 GMALT 2025-1 A3 4.66
02/21/2028 1,390,000.00 02/05/2025
4.66%
1,389,835.98
1,389,883.97
100.82
3.88%
1,401,382.71
1,979.21
0.40%
11,498.74
NA/AAA
AAA
2.14 0.98
05592XAD2 BMWOT 2023-A A3 5.47
02/25/2028 258,902.33 07/11/2023
5.47%
258,856.46
258,880.93
100.60
4.08%
260,464.03
236.03
0.07%
1,583.10
NA/AAA
AAA
2.15 0.42
477920AC6 JDOT 2023-B A3 5.18 03/15/2028 602,804.93 06/21/2023
5.51%
602,704.38
602,757.98
100.62
4.01%
606,512.18
1,387.79
0.17%
3,754.20
Aaa/NA
AAA
2.21 0.50
47787CAC7 JDOT 2023-C A3 5.48 05/15/2028 2,044,536.90 09/12/2023
5.55%
2,044,396.44
2,044,465.43
100.89
4.03%
2,062,780.30
4,979.58
0.59%
18,314.87
Aaa/NA
AAA
2.37 0.59
02582JJZ4 AMXCA 2023-1 A 4.87 05/15/2026 1,270,000.00 06/07/2023
4.92%
1,269,887.35
1,269,981.71
100.37
3.90%
1,274,645.66
2,748.84
0.36%
4,663.95
NA/AAA
AAA
0.37 0.36
438123AC5 HAROT 2023-4 A3 5.67
06/21/2028 744,126.59 11/01/2023
5.7 4%
743,995.55
744,056.52
101.09
4.09%
752,247.24
1,172.00
0.21%
8,190.71
Aaa/NA
AAA
2.47 0.64
161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 4,915,000.00 --
5.23%
4,920,147.11
4,916,029.51
100.94
3.83%
4,961,255.07
11,271.73
1.42%
45,225.56
NA/AAA
AAA
2.71 0.68
096919AD7
BMWO
T 2024-A A3 5.18
02/26/2029 1,424,211.11 06/04/2024
5.18%
1,423,994.78
1,424,066.30
100.91
3.98%
1,437,209.88
1,229.57
0.41%
13,143.58
Aaa/AAA
NA
3.16 0.73
44934QAD3 HART 2024-B A3 4.84 03/15/2029 910,000.00 07/16/2024
5.45%
909,862.68
909,905.29
101.12
3.83%
920,177.44
1,957.51
0.26%
10,272.15
NA/AAA
AAA
3.20 1.05
43813YAC6 HAROT 2024-3 A3 4.57
03/21/2029 2,040,000.00 08/09/2024
4.66%
2,039,679.52
2,039,774.92
100.76
3.84%
2,055,504.00
2,589.67
0.59%
15,729.08
Aaa/NA
AAA
3.22 0.97
05522RDJ4 BACCT 2024-1 A 4.93 05/15/2029 1,635,000.00 06/06/2024
4.93%
1,634,908.28
1,634,937.45
101.57
3.78%
1,660,613.91
3,582.47
0.47%
25,676.46
Aaa/AAA
NA
3.37 1.30
89240JAD3 TAOT 2025-A A3 4.64 08/15/2029 1,990,000.00 01/22/2025
4.69%
1,989,920.20
1,989,936.41
101.07
3.95%
2,011,300.96
4,103.82
0.57%
21,364.55
Aaa/NA
AAA
3.62 1.46
096924AD7 BMWO
T 2025-A A3 4.56
09/25/2029 2,185,000.00 02/04/2025
4.56%
2,184,784.78
2,184,826.01
101.01
3.82%
2,206,974.55
1,660.60
0.63%
22,148.53
Aaa/AAA
NA
3.73 1.27
92970QAE5 WFCIT 2024-2 A 4.29 10/15/2029 1,815,000.00 10/17/2024
4.29%
1,814,730.29
1,814,794.71
100.97
3.76%
1,832,581.91
3,460.60
0.52%
17,787.19
Aaa/AAA
NA
3.79 1.69
44935CAD3 HART 2025-A A3 4.32 10/15/2029 2,045,000.00 03/04/2025
4.84%
2,044,698.36
2,044,751.39
100.74
3.90%
2,060,143.23
3,926.40
0.59%
15,391.84
NA/AAA
AAA
3.79 1.61
02582JKM1 AMXCA 2025-1 A 4.56 12/17/2029 3,685,000.00
02/0
4/2025
4.57%
3,684,181.56
3,684,331.38
101.62
3.73%
3,744,608.56
7,468.27
1.07%
60,277.18
NA/AAA
AAA
3.96 1.83
ATTACHMENT B
HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
92348KDY6 VZMT 2025-3 A1A 4.51
03/20/2030 2,525,000.00 03/25/2025
4.51%
2,524,891.43
2,524,907.94
100.79
4.13%
2,545,068.70
3,479.59
0.73%
20,160.76
Aaa/NA
AAA
4.22 1.16
31,481,475.14 101.00 31,793,470.31 9.08% 3.18
Total ABS 31,479,581.85 4.89% 31,478,287.86 3.88% 57,233.68 315,182.45 1.11 AGENCY
3130ATS57 FEDERAL HOME LOAN BANKS 4.5
03/10/2028 4,100,000.00 03/28/2023
3.89%
4,211,028.00
4,149,066.02
102.09
3.50%
4,185,714.60
56,887.50
1.20%
36,648.58
Aa1/AA+
AA+
2.19 2.05
3133ERDH1 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 04/30/2029 2,500,000.00 04/29/2024
4.70%
2,505,075.00
2,503,376.85
103.60
3.59%
2,590,000.00
20,121.53
0.74%
86,623.15
Aa1/AA+
AA+
3.33 3.04
3130B1BC0 FEDERAL HOME LOAN BANKS
4.625 06/08/2029 1,900,000.00 07/30/2024
4.10%
1,943,358.00
1,930,666.06
103.29
3.60%
1,962,422.60
5,614.24
0.56%
31,756.54
Aa1/AA+
AA+
3.44 3.15
3133EN7B0 FEDERAL FARM CREDIT BANKS
FUNDING CORP 3.75 01/25/2030 3,000,000.00 01/20/2023
3.83%
2,985,090.00
2,991,340.89
99.78 3.81%
2,993,466.00
48,750.00
0.8 6%
2,125.11
Aa1/AA+
AA+
4.07 3.68
3133EN4V9 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.125 09/23/2030 2,100,000.00 12/22/2022
4.22%
2,087,505.00
2,092,371.29
101.20
3.84%
2,125,227.30
23,581.25
0.61%
32,856.01
Aa1/AA+
AA+
4.73 4.22
3133ENQ45 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.25 09/30/2030 875,000.00 11/30/2022
4.40%
866,250.00
869,699.84
102.13
3.75%
893
,628.75
9,400.17
0.26%
23,928.91
Aa1/AA+
AA+
4.75 4.23
880591EX6 TENNESSEE VALLEY AUTHORITY
1.5 09/15/2031 1,003,000.00 01/23/2023
4.03%
818,959.53
881,530.96
87.81 3.90%
880,768.40
4,429.92
0.25%
(762.56)
Aa1/AA+
AA+
5.71 5.34
3133ENFQ8 FEDERAL FARM CREDIT BANKS
FUNDING CORP 1.81 12/01/2031 2,303,000.00 01/25/2023
3.94%
1,939,056.91
2,059,695.43
88.43 4.03%
2,036,538.29
3,473.69
0.58%
(23,157.14)
Aa1/AA+
AA+
5.92 5.49
3133ENGS3 FEDERAL FARM CREDIT BANKS
FUNDING CORP 1.625 12/09/2031 4,500,000.00 02/24/2023
4.35%
3,613,410.00
3,900,646.36
88.25 3.86%
3,971,169.00
4,468.75
1.13%
70,522.64
Aa1/AA+
AA+
5.94 5.55
3133EN6M7 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.0 01/19/2033 3,000,000.00 01/18/2023
3.93%
3,017,490.00
3,012,328.70
98.85 4.19%
2,965,392.00
54,000.00
0.85%
(46,936.70)
Aa1/AA+
AA+
7.05 5.97
3130AV4X7 FEDERAL HOME LOAN BANKS
4.375 03/11/2033 2,500,000.00 05/1
2/2023
4.04%
2,568,175.00
2,549,896.20
102.07
4.04%
2,551,627.50
33,420.14
0.73%
1,731.30
Aa1/AA+
AA+
7.19 6.06
880591FB3 TENNESSEE VALLEY AUTHORITY
4.375 08/01/2034 1,845,000.00 08/08/2024
4.49%
1,828,561.05
1,830,846.24
100.92
4.25%
1,861,931.57
33,632.81
0.53%
31,085.32
Aa1/AA+
AA+
8.58 6.98
28,383,958.49 98.31 29,017,886.01 8.29% 5.06
Total Agency 29,626,000.00 4.14% 28,771,464.86 3.84% 297,780.00 246,421.15 4.50
ATTACHMENT B
HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
AGENCY CMBS
3137F2LJ3 FHMS K-066 A2 3.117 06/25/2027 2,400,000.00 10/20/2022
4.88%
2,234,343.75
2,349,119.87
99.07 3.71%
2,377,711.20
6,234.00
0.68%
28,591.33
Aa1/AA+
AAA
1.48 1.27
3137FG6X8 FHMS K-077 A2 3.85 05/25/2028 5,245,000.00 05/24/2023
4.65%
5,148,705.08
5,199,423.26
100.00
3.76%
5,245,110.15
16,827.71
1.50%
45,686.88
Aa1/AA+
AAA
2.40 2.17
3137FHPJ6 FHMS K-080 A2 3.926 07/25/2028 3,500,000.00 10/28/2025
3.73%
3,510,937.50
3,510,241.27
100.15
3.79%
3,505,141.50
11,450.83
1.00%
(5,099.77)
Aaa/AA+
AA+
2.57 2.38
3137FK4M5 FHMS K-085 A2 4.06 10/25/2028 1,500,000.00 12/09/2025
3.90%
1,503,574.22
1,503,504.41
100.49
3.80%
1,507,315.50
5,075.00
0.43%
3,811.09
Aaa/AA+
AA+
2.82 2.58
3137FLN91 FHMS K-091 A2 3.505 03/25/2029 4,065,000.00 09/12/2025
3.81%
4,020,539.06
4,024,276.46
98.88 3.84%
4,019,614.28
11,873.19
1.15%
(4,662.18)
Aa1/AAA
AA+
3.23 2.90
3137FMTY8 FHMS K-094 A2 2.903 06/25/2029 3,500,000.00 11/17/2025
3.89%
3,383,925.78
3,387,707.87
96.82 3.87%
3,388,567.00
8,4
67.08 0.97%
859.13
Aa1/AA+
AAA
3.48 3.18
3137FPJG1 FHMS K-099 A2 2.595 09/25/2029 3,500,000.00 06/06/2025
4.38%
3,261,425.78
3,292,967.67
95.51 3.91%
3,342,832.50
7,568.75
0.96%
49,864.83
Aa1/AA+
AAA
3.73 3.40
3137FRUT6 FHMS K-106 A2 2.069 01/25/2030 3,000,000.00
07/1
4/2025
4.28%
2,730,937.50
2,758,686.12
92.97 3.95%
2,789,166.00
5,172.50
0.80%
30,479.88
Aa1/AA+
AAA
4.07 3.79
25,794,388.67 98.06 26,175,458.12 7.48% 2.98
Total Agency CMBS 26,710,000.00 4.20% 26,025,926.94 3.83% 72,669.06 149,531.18 2.71 CASH
CCYUSD Receivable 13,447.05 -- 13,447.05
13,447.05
1.00 13,447.05
0.00 0.00%
0.00 Aaa/AAA
AAA
0.00 0.00
13,447.05 1.00 13,447.05 0.00% 0.00
Total Cash 13,447.05 13,447.05 0.00 0.00 0.00
CORPORATE
46625HQW3 JPMORGAN CHASE & CO 3.3
04/01/2026 3,000,000.00 04/21/2025
4.38%
2,970,390.00
2,992,253.20
99.88 3.74%
2,996,508.00
24,750.00
0.86%
4,254.80
A1/A
AA-
0.25 0.24
06051GFX2 BANK OF AMERICA CORP 3.5
04/19/2026 3,000,000.00 04/22/2025
4.43%
2,973,360.00
2,992,030.14
99.87 3.91%
2,996,130.00
21,000.00
0.86%
4,099.86
A1/A-
AA-
0.30 0.29
91324PEC2 UNITEDHEALTH GROUP INC 1.15
05/15/2026 4,000,000.00 09/1
9/2022
4.16%
3,592,560.00
3,959,011.29
99.02 3.84%
3,960,684.00
5,877.78
1.13%
1,672.71
A2/A+
A
0.37 0.36
ATTACHMENT B
HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
02665WEK3 AMERICAN HONDA FINANCE
CORP 5.25 07/07/2026 3,500,000.00 04/29/2025
4.37%
3,535,000.00
3,515,115.47
100.69
3.88%
3,524,216.50
88,812.50
1.01%
9,101.03
A3/A-
A
0.51 0.49
61761J3R8 MORGAN STANLEY 3.125
07/27/2026 3,500,000.00 04/29/2025
4.30%
3,450,685.00
3,477,465.33
99.55 3.93%
3,484,299.00
46,788.19
1.00%
6,833.67
A1/A-
A+
0.57 0.55
87612EBM7 TARGET CORP 1.95 01/15/2027 2,140,000.00 --
1.97%
2,137,844.40
2,139,550.85
98.20 3.73%
2,101,518.52
19,242.17
0.60%
(38,032.33)
A2/A
A
1.04 1.00
808513BY0 CHARLES SCHWAB CORP 2.45
03/03/2027 3,500,000.00 01/23/2023
4.35%
3,251,955.00
3,429,461.17
98.42 3.84%
3,444,780.50
28,106.94
0.98%
15,319.33
A2/A-
A
1.17 1.13
665859AW4 NORTHERN TRUST CORP 4.0
05/10/2027 2,200,000.00 08/24/2022
3.93%
2,206,402.00
2,201,759.79
100.33
3.75%
2,207,176.40
12,466.67
0.63%
5,416.61
A2/A+
A+
1.36 1.22
92826CAH5 VISA INC 2.75 09/15/2027 4,000,000.00 03/27/2024
4.57%
3,769,760.00
3,886,880.51
98.79 3.49%
3,951,564.00
32,388.89
1.1 3%
64,683.49
Aa3/AA-
NA
1.71 1.63
74340XBV2 PROLOGIS LP 3.375 12/15/2027 3,000,000.00 01/25/2023
4.28%
2,881,530.00
2,952,625.29
99.15 3.83%
2,974,581.00
4,500.00
0.85%
21,955.71
A2/A
NA
1.96 1.87
24422EWR6 JOHN DEERE CAPITAL CORP 4.75
01/20/2028 2,000,000.00 01/20/2023
4.35%
2,035,920.00
2,0
14,766.23
101.92
3.77%
2,038,304.00
42,486.11
0.58%
23,537.77
A1/A
A+
2.05 1.90
713448FL7 PEPSICO INC 3.6 02/18/2028 2,000,000.00 04/27/2023
4.00%
1,964,920.00
1,984,466.57
99.78 3.71%
1,995,542.00
26,600.00
0.57%
11,075.43
A1/A+
NA
2.13 2.00
857477CU5 STATE STREET CORP 4.536
02/28/2028 4,155,000.00 02/25/2025
4.51%
4,155,000.00
4,155,000.00
101.53
3.79%
4,218,725.24
64,394.19
1.21%
63,725.24
Aa3/A
AA-
2.16 1.94
57636QAW4 MASTERCARD INC 4.875
03/09/2028 3,000,000.00 06/13/2024
4.50%
3,037,110.00
3,021,424.62
102.27
3.78%
3,068,232.00
45,500.00
0.88%
46,807.38
Aa3/A+
NA
2.19 1.96
61747YER2 MORGAN STANLEY 4.21
04/20/2028 1,800,000.00 07/31/2023
5.39%
1,729,026.00
1,775,245.27
100.23
4.57%
1,804,129.20
14,945.50
0.52%
28,883.93
A1/A-
A+
2.30 1.24
58933YBH7 MERCK & CO INC 4.05 05/17/2028 2,000,000.00 --
4.03%
2,001,621.20
2,000,748.69
100.72
3.73%
2,014,410.00
9,900.00
0.5 8%
13,661.31
Aa3/A+
NA
2.38 2.16
46647PAM8 JPMORGAN CHASE & CO 3.509
01/23/2029 3,000,000.00 02/27/2024
5.19%
2,823,480.00
2,906,781.57
99.05 4.28%
2,971,533.00
46,201.83
0.85%
64,751.43
A1/A
AA-
3.06 1.93
69371RS80 PACCAR FINANCIAL CORP 4.6
01/31/2029 3,600,000.00 01/29/2024
4.52%
3,612,132.00
3,607,477.08
101.84
3.96%
3,666,081.60
69,460.00
1.05%
58,604.52
A1/A+
NA
3.08 2.80
857477CN1 STATE STREET CORP 4.53
02/20/2029 2,000,000.00 08/14/2024
4.53%
2,000,000.00
2,000,000.00
101.29
4.16%
2,025,742.00
32,968.33
0.58%
25,742.00
Aa3/A
AA
-
3.14 1.99
17275RBR2 CISCO SYSTEMS INC 4.85
02/26/2029 3,000,000.00 02/27/2024
4.84%
3,001,560.00
3,000,975.33
102.64
3.95%
3,079,236.00
50,520.83
0.88%
78,260.67
A1/AA-
NA
3.16 2.79
ATTACHMENT B
HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
14913UAJ9 CATERPILLAR FINANCIAL SERVICES
CORP 4.85 02/27/2029 4,000,000.00 04/29/2024
5.08%
3,960,640.00
3,974,273.20
102.75
3.91%
4,110,040.00
66,822.22
1.17%
135,766.80
A2/A
A+
3.16 2.86
06051GLG2 BANK OF AMERICA CORP 5.202
04/25/2029 2,500,000.00 05/28/2024
5.38%
2,484,025.00
2,490,540.38
102.56
4.41%
2,564,020.00
23,842.50
0.73%
73,479.62
A1/A-
AA-
3.31 2.15
89236TMF9 TOYOTA MOTOR CREDIT CORP
5.05 05/16/2029 2,500,000.00 05/28/2024
5.09%
2,495,600.00
2,497,012.47
103.15
4.04%
2,578,762.50
15,781.25
0.74%
81,750.03
A1/A+
A+
3.37 3.07
57629W4T4 MASSMUTUAL GLOBAL FUNDING
II 5.15 05/30/2029 2,950,000.00 05/22/2024
5.17%
2,947,551.50
2,948,330.57
102.95
4.21%
3,036,889.30
13,082.43
0.87%
88,558.73
Aa3/AA+
AA+
3.41 3.10
437076DC3 HOME DEPOT INC 4.75
06/25/2029 4,000,000.00 07/30/2024
4.58%
4,028,360.00
4,019,992.27
102.52
3.97%
4,100,976.00
3,166.67
1.17%
80,983.73
A2/A
A
3.48 3.12
025816EJ4 AMERICAN EXPRESS CO 4.351
07/20/2029 2,500,000.00 07/25/2025
4.38%
2,497,650.00
2,497,903.92
100
.73
4.18%
2,518,240.00
47,135.83
0.72%
20,336.08
A2/A-
A
3.55 2.35
532457CQ9 ELI LILLY AND CO 4.2 08/14/2029 2,290,000.00 08/12/2024
4.25%
2,284,984.90
2,286,371.88
100.97
3.91%
2,312,194.68
36,601.83
0.66%
25,822.80
Aa3/A+
NA
3.62 3.21
64952WFK4 NEW YORK LIFE GLOBAL FUNDING
4.6 12/05/2029 3,500,000.00 02/27/2025
4.5 8%
3,502,135.00
3,501,758.52
101.57
4.16%
3,554,964.00
11,627.78
1.02%
53,205.48
Aa1/AA+
AAA
3.93 3.55
59217GFT1 METROPOLITAN LIFE GLOBAL
FUNDING I 4.9 01/09/2030 2,645,000.00 01/02/2025
4.95%
2,639,551.30
2,640,616.57
102.32
4.27%
2,706,311.10
61,922.39
0.77%
65,694.53
Aa3/AA-
AA-
4.02 3.54
63743HFX5
NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 4.95
02/07/2030
3,500,000.00 05/28/2025
4.70%
3,535,315.00
3,530,764.31
102.92
4.17%
3,602,112.50
69,300.00
1.03%
71,348.19
A2/NA
A
4.10 3.55
743315AW3 PROGRESSIVE CORP 3.2
03/26/2030 2,425,000.00 11/14/2025
4.16%
2,332,971.25
2,335,575.84
96.72 4.05%
2,345,576.40
20,477.78
0.67%
10,000.56
A2/A
A
4.23 3.88
74464AAC5 PUBLIC STORAGE OPERATING CO
4.375 07/01/2030 2,085,000.00 07/17/2025
4.58%
2,066,109.90
2,067,853.76
100.82
4.17%
2,102,015.69
45,862.76
0.60%
34,161.92
A2/A
NA
4.50 3.98
Total Corporate 93
,290,000.00 4.51%
91,905,149.45
92,804,032.08
100.85
3.96%
94,055,495.12
1,102,533.38
26.87%
1,251,463.04
2.44 2.10
MONEY MARKET
FUND
60934N104 FEDERATED HRMS GV O INST 1,469,469.98 --
3.62%
1,469,469.98
1,469,469.98
1.00 5.17%
1,469,469.98
0.00 0.42%
0.00 Aaa/AAAm
AAA
0.00 0.00
Total Money Market
Fund 1,469,469.98 3.62%
1,469,469.98
1,469,469.98
1.00 5.17%
1,469,469.98
0.00 0.42%
0.00 0.00
0.00 ATTACHMENT B
HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
MUNICIPAL BONDS
646140DP5 NEW JERSEY ST TPK AUTH TPK
REV 1.047 01/01/2026 557,500.00 01/22/2021
1.05%
557,500.00
557,500.00
100.00
1.05%
557,500.00
2,918.51
0.16%
0.00 A1/AA-
A+
0.00 0.00
13063ESC1 CALIFORNIA ST 4.35 11/01/2032 3,800,000.00 10/31/2025
4.26%
3,820,216.00
3,819,772.39
100.90
4.20%
3,834,029.00
25,254.17
1.10%
14,256.61
Aa2/AA-
AA
6.84 5.82
Total Municipal
Bonds 4,357,500.00 3.85%
4,377,716.00
4,377,272.39
100.78
3.80%
4,391,529.00
28,172.68
1.25%
14,256.61
5.97 5.08
US TREASURY
91282CBH3 UNITED STATES TREASURY 0.375
01/31/2026 17,305,000.00 --
0.79%
16,971,456.65
17,299,201.65
99.74 3.68%
17,260,041.61
27,156.62
4.93%
(39,160.04)
Aa1/AA+
AA+
0.08 0.08
91282CBQ3 UNITED STATES TREASURY 0.5
02/28/2026 12,670,000.00 --
0.94%
12,437,181.06
12,661,406.44
99.48 3.82%
12,604,039.98
21,525.00
3.60%
(57,366.46)
Aa1/AA+
AA+
0.16 0.16
912797ST5 UNITED STATES TREASURY
03/03/2026 6,000,000.00 12/17/2025
3.61%
5,955,812.50
5,964,060.83
99.41 3.62%
5,964,462.00
0.00 1.7
0%
401.17
P-1/A-1+
F1+
0.17 0.16
91282CCF6 UNITED STATES TREASURY 0.75
05/31/2026 8,320,000.00 --
0.80%
8,301,545.71
8,318,480.71
98.85 3.60%
8,224,245.12
5,485.71
2.35%
(94,235.59)
Aa1/AA+
AA+
0.41 0.40
91282CCY5 UNITED STATES TREASURY 1.25
09/30/2028 3,325,000.00 --
3.32%
3,058,576.17
3,149,948.52
94.07 3.54%
3,127,707.80
10,618.99
0.89%
(22
,240.72)
Aa1/AA+
AA+
2.75 2.65
91282CPC9 UNITED STATES TREASURY 3.5
10/15/2028 6,300,000.00 10/28/2025
3.49%
6,301,230.47
6,301,157.69
99.90 3.54%
6,293,599.20
47,250.00
1.80%
(7,558.49)
Aa1/AA+
AA+
2.79 2.61
91282CJF9 UNITED STATES TREASURY 4.875
10/31/2028 2,500,000.00 07/25/2025
3.87%
2,575,781.25
2,565,791.61
103.54
3.54%
2,588,575.00
20,873.62
0.74%
22,783.39
Aa1/AA+
AA+
2.84 2.61
9128285M8 UNITED STATES TREASURY 3.125
11/15/2028 6,300,000.00 10/28/2025
3.50%
6,232,078.13
6,235,983.79
98.88 3.54%
6,229,616.40
25,561.12
1.78%
(6,367.39)
Aa1/AA+
AA+
2.88 2.71
91282CJR3 UNITED STATES TREASURY 3.75
12/31/2028 6,300,000.00 10/28/2025
3.51%
6,345,035.16
6,342,548.32
100.57
3.55%
6,335,683.20
652.62
1.81%
(6,865.12)
Aa1/AA+
AA+
3.00 2.81
91282CJW2 UNITED STATES TREASURY 4.0
01/31/2029 7,000,000.00 03/27/2024
4.20%
6,940,117.19
6,961,905.06
101.27
3.56%
7,0
89,138.00
117,173.91
2.03%
127,232.94
Aa1/AA+
AA+
3.08 2.83
9128286B1 UNITED STATES TREASURY 2.625
02/15/2029 7,000,000.00 --
4.06%
6,525,214.84
6,722,526.34
97.23 3.57%
6,806,408.00
69,405.57
1.94%
83,881.66
Aa1/AA+
AA+
3.13 2.93
ATTACHMENT B
HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CKT7 UNITED STATES TREASURY 4.5
05/31/2029 6,500,000.00 06/13/2024
4.25%
6,572,617.19
6,550,017.15
102.88
3.60%
6,686,875.00
25,714.29
1.91%
136,857.85
Aa1/AA+
AA+
3.41 3.13
91282CLC3 UNITED STATES TREASURY 4.0
07/31/2029 3,450,000.00 12/23/2024
4.42%
3,390,164.06
3,403,449.06
101.29
3.61%
3,494,608.50
57,750.00
1.00%
91,159.44
Aa1/AA+
AA+
3.58 3.26
912828YB0 UNITED STATES TREASURY 1.625
08/15/2029 7,600,000.00 --
3.42%
6,985,504.69
7,149,571.50
93.35 3.60%
7,094,425.20
46,648.10
2.03%
(55,146.30)
Aa1/AA+
AA+
3.62 3.44
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 6,500,000.00 11/26/2024
4.21%
6,475,371.10
6,480,847.23
101.71
3.64%
6,611,208.50
45,921.96
1.89%
130,361.27
Aa1/AA+
AA+
3.83 3.49
91282CFY2 UNITED STATES TREASURY 3.875
11/30/2029 8,000,000.00 01/30/2025
4.32%
7,847,187.50
7,876,208.01
100.84
3.64%
8,066,872.00
27,252.75
2.30%
190,663.99
Aa1/AA+
AA+
3.91 3.59
91282CGJ4 UNITED STATES TREASURY 3.5
01/31/2030 6,700,000.00 --
4.02%
6,511,839.85
6,578,244.98
99.43 3.65%
6,661,528.60
98,133.15
1.9 0%
83,283.62
Aa1/AA+
AA+
4.08 3.71
912828Z94 UNITED STATES TREASURY 1.5
02/15/2030 542,500.00 04/06/2022
2.65%
498,040.43
519,145.93
91.85 3.65%
498,294.93
3,073.68
0.14%
(20,851.00)
Aa1/AA+
AA+
4.13 3.91
91282CMZ1 UNITED STATES TREASURY 3.875
04/30/2030 3,500,000.00 05/28/2025
4.08%
3,467,871.09
3,471,750.87
100.78
3.68%
3,527,345.50
23,
228.59
1.01%
55,594.63
Aa1/AA+
AA+
4.33 3.93
91282CNG2 UNITED STATES TREASURY 4.0
05/31/2030 3,000,000.00 06/06/2025
4.11%
2,985,117.19
2,986,804.51
101.27
3.68%
3,038,202.00
10,549.45
0.87%
51,397.49
Aa1/AA+
AA+
4.41 4.00
91282CNN7 UNITED STATES TREASURY 3.875
07/31/2030 4,000,000.00 08/15/2025
3.85%
4,005,000.00
4,004,623.89
100.74
3.70%
4,029,532.00
64,864.13
1.15%
24,908.11
Aa1/AA+
AA+
4.58 4.10
91282CAE1 UNITED STATES TREASURY 0.625
08/15/2030 587,500.00 04/06/2022
2.63%
498,755.37
538,381.82
87.02 3.71%
511,216.65
1,386.93
0.15%
(27,165.17)
Aa1/AA+
AA+
4.62 4.46
91282CNX5 UNITED STATES TREASURY 3.625
08/31/2030 5,000,000.00 09/18/2025
3.66%
4,992,382.81
4,992,821.21
99.64 3.71%
4,982,225.00
61,584.94
1.42%
(10,596.21)
Aa1/AA+
AA+
4.67 4.20
91282CPA3 UNITED STATES TREASURY 3.625
09/30/2030 1,500,000.00 11/17/2025
3.72%
1,493,496.09
1,493,657.13
99.61 3.71%
1,4
94,199.50
13,892.51
0.43%
542.37
Aa1/AA+
AA+
4.75 4.28
91282CPD7 UNITED STATES TREASURY 3.625
10/31/2030 7,000,000.00 11/13/2025
3.70%
6,975,664.06
6,976,308.72
99.58 3.72%
6,970,467.00
43,459.94
1.99%
(5,841.72)
Aa1/AA+
AA+
4.83 4.36
91282CPN5 UNITED STATES TREASURY 3.5
11/30/2030 7,000,000.00 12/08/2025
3.75%
6,920,703.13
6,921,706.89
98.99 3.73%
6,929,454.00
21,538.46
1.98%
7,747.11
Aa1/AA+
AA+
4.91 4.45
91282CBL4 UNITED STATES TREASURY 1.125
02/15/2031 565,000.00 04/06/2022
2.62%
498,104.88
526,274.51
88.04 3.71%
497,442.95
2,400.87
0.14%
(28,831.56)
Aa1/AA+
AA+
5.13 4.86
912
810FP8 UNITED STATES TREASURY 5.375
02/15/2031 6,000,000.00 --
4.27%
6,403,066.41
6,290,767.95
107.51
3.75%
6,450,702.00
121,813.86
1.84%
159,934.05
Aa1/AA+
AA+
5.13 4.40
ATTACHMENT B
HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of December 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CCS8 UNITED STATES TREASURY 1.25
08/15/2031 562,500.00 04/06/2022
2.62%
498,515.62
524,030.64
87.12 3.82%
490,056.19
2,655.83
0.14%
(33,974.45)
Aa1/AA+
AA+
5.62 5.30
91282CFV8 UNITED STATES TREASURY 4.125
11/15/2032 2,500,000.00 --
3.72%
2,582,389.33
2,557,713.73
101.14
3.93%
2,528,612.50
13,389.16
0.72%
(29,101.23)
Aa1/AA+
AA+
6.88 5.91
Total US Treasury 163,527,500.00 3.16%
161,245,819.93
162,365,336.71
99.81 3.65%
163,086,784.33
1,030,961.77
46.60%
721,447.62
2.89 2.64
Total Portfolio 350,473,498.88 3.85%
344,671,424.70
347,305,237.86
99.54 3.79%
350,003,539.92
2,589,350.57
100.00%
2,698,302.05
3.01 2.54
Total Market Value +
Accrued 352,592,890.49
ATTACHMENT B
HOLDINGS REPORT
City of Stockton Enhanced Cash | Account #11194 | As of December 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CASH
CCYUSD Receivable 5,615.76 -- 5,615.76
5,615.76
1.00 5,615.76
0.00 0.31%
0.00 Aaa/AAA
AAA
0.00 0.00
Total Cash 5,615.76
5,615.76
5,615.76
1.00 5,615.76
0.00 0.31%
0.00 0.00
0.00 MONEY MARKET
FUND
60934N104 FEDERATED HRMS GV O INST 1,801,632.22 --
3.62%
1,801,632.22
1,801,632.22
1.00 5.17%
1,801,632.22
0.00 99.69%
0.00 Aaa/AAAm
AAA
0.00 0.00
Total Money Market
Fund 1,801,632.22 3.62%
1,801,632.22
1,801,632.22
1.00 5.17%
1,801,632.22
0.00 99.69%
0.00 0.00
0.00 Total Portfolio 1,807,247.98 3.62%
1,807,247.98
1,807,247.98
1.00 5.17%
1,807,247.98
0.00 100.00%
0.00 0.00
0.00 Total Market Value +
Accrued 1,807,247.98
ATTACHMENT B
TRANSACTIONS
ATTACHMENT B
TRANSACTION LEDGER
City of Stockton Reserve | Account #10020|10/01/2025 Through 12/31/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 10/29/2025 9128285M8 6,300,000.00
UNITED STATES
TREASURY 3.125
11/15/2028
98.922 3.50% (6,232,078.13) (89,342.73) (6,321,420.86) 0.00 Purchase 10/29/2025 91282CJR3 6,300,000.00
UNITED STATES
TREASURY 3.75
12/31/2028
100.715 3.51% (6,345,035.16) (77,680.03) (6,422,715.19) 0.00 Purchase 10/29/2025 91282CPC9 6,300,000.00
UNITED STATES
TREASURY 3.5
10/15/2028
100.020 3.49% (6,301,230.47) (8,480.77) (6,309,711.24) 0.00 Purchase 10/31/2025 3137FHPJ6 3,500,000.00 FHMS K-080 A2 3.926 07/25/2028 100.313 3.73% (3,510,937.50) (11,450.83) (3,522,388.33) 0.00 Purchase 11/06/2025 13063ESC1 3,800,000.00 CALIFORNIA ST 4.35 11/01/2032 100.532 4.26% (3,820,216.00) 0.00 (3,820,216.00) 0.00 Purchase 11/14/2025 91282CPD7 7,000,000.00
UNITED STATES
TREASURY 3.625
10/31/2030
99.652 3.70% (6,975,664.06) (9,813.54) (6,985,477.60) 0.00 Purchase 11/17/2025 743315AW3 2,425,000.00 PROGRESSIVE CORP
3.2 03/26/2030 96.205 4.16% (2,332,971.25) (10,993.33) (2,343,964.58) 0.00 Purchase 11/18/2025 91282CPA3 1,500,000.00
UNITED STATES
TREASURY 3.625
09/30/2030
99.566 3.72% (1,493,496.09) (7,319.71) (1,500,815.80) 0.00 Purchase 11/20/2025 3137FMTY8 3,500,000.00 FHMS K-094 A2 2.903 06/25/2029 96.684 3.8 9% (3,383,925.78) (5,362.49) (3,389,288.27) 0.00 Purchase 12/09/2025 91282CPN5 7,000,000.00
UNITED STATES
TREASURY 3.5
11/30/2030
98.867 3.75% (6,920,703.13) (6,057.69) (6,926,760.82) 0.00 Purchase 12/12/2025 3137FK4M5 1,500,000.00 FHMS K-085 A2 4.06 10/25/2028 100.238 3.90% (1,
503,574.22) (1,860.83) (1,505,435.05) 0.00
Purchase 12/18/2025 912797ST5 6,000,000.00 UNITED STATES TREASURY 03/03/2026 99.264 3.61% (5,955,812.50) 0.00 (5,955,812.50) 0.00 Total Purchase 55,125,000.00 (54,775,644.29) (228,361.95) (55,004,006.24) 0.00 TOTAL
ACQUISITIONS 55,125,000.00 (54,775,644.29) (228,361.95) (55,004,006.24) 0.00
ATTACHMENT B
TRANSACTION LEDGER
City of Stockton Reserve | Account #10020|10/01/2025 Through 12/31/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
DISPOSITIONS
Maturity 10/02/2025 912797MS3 (3,500,000.00) UNITED STATES TREASURY 10/02/2025 100.000 4.22% 3,500,000.00 0.00 3,500,000.00 0.00 Maturity 10/09/2025 912797QE0 (5,250,000.00) UNITED STATES TREASURY 10/09/2025 100.000 4.29% 5,250,000.00 0.00 5,250,000.00 0.00 Maturity 10/14/2025 912797RC3 (6,000,000.00) UNITED STATES TREASURY 10/14/2025 100.000 4.10% 6,000,000.00 0.00 6,000,000.00 0.00 Maturity 11/07/2025 3135G06G3 (8,145,000.00)
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION 0.5
11/07/2025
100.000 0.54% 8,145,000.00 0.00 8,145,000.00 0.00
Maturity 11/30/2025 91282CAZ4 (6,772,500.00)
UNITED STATES
TREASURY 0.375
11/30/2025
100.000 0.93% 6,772,500.00 0.00 6,772,500.00 0.00
Maturity 12/15/2025 91282CGA3 (5,000,000.00)
UNITED STATES
TREASURY 4.0
12/15/2025
100.000 4.01% 5,000,000.00 0.00 5,000,000.00 0.00
Total Maturity (34,667,500.00) 34,667,500.00 0.00 34,667,500.00 0.00 Sale 10/29/2025 91282CHT1 (6,500,000.00)
UNITED STATES
TREASURY 3.875
08/15/2033
100.313 4.73% 6,520,312.50 51,333.22 6,571,645.72 362,937.26 Sale 10/31/2025 91282CFV8 (3,500,000.00)
UNITED STATES
TREASURY 4.125
11/15/2032
101.484 3.72% 3,551,953.13 66,302.65 3,618,255.78 (30,841.93) Sale 11/12/2025 3130AVWG3 (6, 195,000.00) FEDERAL HOME LOAN BANKS 4.0 06/10/2033 99.577 4.40% 6,168,795.15 104,626.67 6,273,421.82 124,342.13 Total Sale (16,195,000.00) 16,241,060.78 222,262.54 16,463,323.32 456,437.46 TOTAL
DISPOSITIONS (50,862,500.00) 50,908,560.78 222,262.54 51,130,823.32 456,437.46
ATTACHMENT B
IMPORTANT DISCLOSURES
City of Stockton | As of December 31, 2025
2025 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.
Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.
Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.
Source ICE Dat a Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.
This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.
Fixed income in vestments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.
Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.
Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest.
ATTACHMENT B
BENCHMARK DISCLOSURES
City of Stockton | As of December 31, 2025
Benchmark Disclosure
ICE BofA 1-5 Year Gov/Corp A or
better
The ICE BofA US Issuers 1-5 Year AAA-A US Corporate & Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency, foreign government, supranational, and corporate securities. Qualifying securities must be issued from US issuers and be rated AAA through A3 (based on an average of Moody’s, S&P and Fitch). In addition, qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to final maturity at point of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for US Treasuries and $250 million for all other securities.
ICE BofA 3-Month US Treasury
Bill Index
The ICE BofA US 3-Month Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a newly selected issue. The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond, three months from the rebalancing date.
ATTACHMENT B