Presentations — Vallejo City Council, April 29, 2024

Deferred
Compensation
Committee Meeting
Apr. 29, 2024
EXAMPLE for customizing to your client on Slide 3.
2 MissionSquare Retirement
Serving Those Who Serve
One mission — helping you and the
communities you serve.

It’s in our name. MissionSquare Retirement is a
nonprofit with no shareholders. We focus solely
on our mission — helping build retirement
security for public sector employees.

And it doesn’t end there. We invest in you and
the programs that benefit the communities you
serve and live in.
3 MissionSquare Retirement
Agenda
Plan
Review
Education & Outreach,
Overall Plan Health
Tech Corner
Employer Resource
Center, Enhancements,
and New Releases
2024 Strategy
Client Engagement and
Participant Engagement
Financial Planning
Program
Education & Resources
Legislative Updates
Secure 2.0 Updates &
Contribution Limits
4 MissionSquare Retirement
Plan Oversight & Strategy
Luther Hermano | Vice President, Relationship Management [email protected] | 202-759-7103
Your contact for strategic planning and results.

Employee Outreach & Education
Ryan Bertrand | Retirement Plan Specialist
[email protected] | 202.759.7187
Your contact for the participant experience.

Employee Outreach & Education Oversight
Tom Axline | Regional Director
[email protected] | 202.759.7012
Your contact for the participant experience oversight.

MSQ Strategies & RM Development
Erika Armstrong | West Regional Director, Relationship Mgmt. [email protected] | 202-759-7009
Additional key client involvement and support.

Your Team
5 Plan Review
6 MissionSquare Retirement
Plan Education and Outreach
Results for Your Plan (Jan-Mar 2024)
Trends for Your Plan (2023-2024 Comparison)
Education 58
Increase in RPS
Consultations
2 CFP®
Consultations
6 Seminars
Participation
& Savings
31 Enrollments

2.7%
Increase in Plan
Contributions
$17,538
Roll-Ins
Financial
Wellness

12.4%
Increase in Account
Logins
19 Financial Wellness
Logins
Retention 16.2%
Decrease
in Rollouts
7 MissionSquare Retirement
Contributions and Disbursements
8 MissionSquare Retirement
Plan Balance as of 3-31-24
9 MissionSquare Retirement
Participant Asset Allocation
10 MissionSquare Retirement
Asset Allocation Trend
11 MissionSquare Retirement
Participant Service Usage
12 MissionSquare Retirement
Service Usage Details
13 2024
Strategy
14 MissionSquare Retirement
We Value You and Your Employees
Our Mission
Delivering on our promise to
serve the public sector.

Client Success
Ongoing engagement and
measurement to continuously
improve your experience and
participant outcomes.

Technology
Continued technology
enhancements that best suit
your plan’s and participant
needs.

Expertise
Providing the expertise you
need that is solely focused on
the public sector.
15 MissionSquare Retirement
Our Strategic Outlook for 2024
Enhancing the technology to help
serve you and your participants
Engaging with you and your
participants through education
Advocating for the
public sector
Offering financial planning
for ALL participants
16 Client
Engagement
17 MissionSquare Retirement
Your Goals Align
With Our Goals
Client
Success
Provide
Positive
Experiences
Serve More
Employees
Deliver the
Right
Products &
Solutions
Promote Financial
Wellness
18 MissionSquare Retirement
Plan Goals and Objectives
We’ve focused on assessing your plan health and have identified these key areas to focus on this year. We will deliver this through our multichannel approach to drive education, savings, and financial stability for your plan.

Retention
Preserve assets and
support needs postemployment
Improve financial
outlook and
retirement readiness
Participation
& Savings
Drive engagement,
participation, and
savings
Education
Promote plan
awareness, learning,
and new features
Financial
Wellness
19 Participant
Engagement
20 MissionSquare Retirement
How We Help Your Employees
The Digital Connection
Plan resource site
Financial Wellness Center
Personalized retirement readiness score and
income gap analysis calculator
Mobile access with our mobile app, eDelivery,
text access, or Ask Alexa capabilities
Email communications
The Personal Touch
MissionSquare Retirement Plans Specialists
Live webinars
CERTIFIED FINANCIAL PLANNER™ Professionals
Call center
21 MissionSquare Retirement
Secure Your
Retirement:

Celebrate Your
Savings
Investing: Focus on
Your Future
2024 Goal-Based Programs
Financial Wellness:

Ready. Set. Save.

Q1
Your Retirement
Plan: Maximize Your
Opportunities
Q2 Q3 Q4
Market Overview and Responsive Communications
Mobile App Financial Wellness
Center
E-Newsletter &
Emails
RPS Workshops
& Appointments
Financial Planning
Webinars & CFP
Consultations
Enroll Learn Save Invest Monitor &
Update
Retire
22 MissionSquare Retirement
Financial Wellness:

Ready. Set. Save.
New year, new start to building
financial security
Explore the Financial Wellness
Center, featuring articles, videos,
calculators, and more
Simplify your retirement savings
Maximize your benefits
23 MissionSquare Retirement
Check out the latest edition of our magazine, designed to help public sector employees to and through retirement.

MissionSquare Realize Magazine
24 MissionSquare Retirement
Financial Literacy Month
and America Saves Week
April 2024
In this national campaign, participants and eligible
employees are encouraged to take the Retire Well
Challenge and choose from five challenges based on
their financial goals. Each challenge includes an
actionable step and an educational resource.

Campaign materials include:
Microsite
Email campaign
Printable flyer
Printable poster
Campaign Microsite
25 MissionSquare Retirement
Explore, learn, and plan. This easy-to-use, interactive hub offers tips and tools to help your employees save, invest, and retire.

Learn More
Popular Financial Topics
Get answers to your
questions about retirement
planning, debt management,
emergency savings, college
tuition planning, health care,
investing, and more.
100+ Tools and Resources
Learn from videos, charts,
calculators, articles, and
tutorials.

One Convenient Location
Easily access these tools in
one place, at any time, right
from your account.

What does the
Financial Wellness Center offer?
26 Financial
Planning
Program
27 MissionSquare Retirement
Financial Planning Education Program
New in 2024!
Financial planning services are available
to ALL participants
Services by CFP® professionals include:
Financial planning workshops and seminars
Individual consultations
Retiree/alumni group meetings
Offsite engagements for invited participants
Additional Employee Benefits
Increases understanding and
Utilization of Plan
Help Encourage Employees to Retain
Assets in Plan
Better Preparation for Retirement
28 MissionSquare Retirement
Services Provided by MissionSquare CFP® Professionals
Financial Planning
Education
(For All)
Financial Planning
(>$100K in MSQ Assets)
Personal Planning
(>$1M in MSQ Assets)
Educational Webinars and
Seminars 3 3 3
Virtual Consultations With a
CFP® professional 3 3 3
Communications on Relevant
Financial Topics 3 3 3
Social Security Analysis and
Strategies 3 3 3
Personalized Financial Goal Plan 3 3
Exclusive Educational Webinars 3
A dedicated CFP® professional 3
29 MissionSquare Retirement
2024 Webinar Program
Our webinars reinforce our commitment to offering financial wellness tools and resources to help meet participants’ education needs as they journey to and, just as importantly, through retirement. View the full schedule: www.missionsq.org/cfpwebinars. 30 MissionSquare Retirement
The MoneyGuide Pro Client Portal Experience
31 Client
Resources
32 MissionSquare Retirement
New! Plan Sponsor Campaign Toolkits
National Campaigns
Plan sponsors receive a campaign toolkit, including details for national campaigns and resources to help promote each event.

Includes:
Campaign description
Links to campaign materials
Main Page Sample Campaign Page
33 MissionSquare Retirement
The Employer Resource Center is your guide to the technology, processes, and services at MissionSquare.

Employer Resource Center
Access the Employer Resource Center
34 MissionSquare Retirement
Employer Bulletin
Contact us to subscribe!
The MissionSquare Employer Bulletin is a monthly newsletter that provides timely information to our clients and serves as a resource to support you in your role. 35 MissionSquare Retirement
Plan Health Dashboard
The online dashboard provides you with access to aggregated plan-level data to evaluate the performance of your MissionSquare 457(b) and/or 401(k) retirement plan(s) based on key plan metrics and compare their performance against a peer group of plans with similar characteristics. The tool is for educational purposes only. 36 MissionSquare Retirement
The Markets: Responsive Education
MissionSquare Retirement monitors market events and is here to help you stay informed with timely insights and proactive education.

Our latest Asset Allocation
Views and positioning are
informed by a subjective
assessment of the relative
attractiveness of asset
classes and subclasses over
a 12-month horizon.

Read our Market Update to
learn more about
developments in the U.S.
economy and markets —
and what our investment
team sees coming for longterm investors.

Market Monitor Webinars
are designed to provide
timely, actionable
retirement insights in an
engaging and informative
format.
37 MissionSquare Retirement
Coming Soon – Plan Sponsor Magazine
Available in both print and digital formats, this magazine is published twice a year to provide thought leadership and insights for public sector plan sponsors and your employees. 38 Legislative
Updates
SECURE 2.0 Act
2024 IRS Contribution Limits
39 MissionSquare Retirement
SECURE 2.0 Requirements
Mandatory Optional
RMDs begin at age 73 Self-certification of unforeseen emergency withdrawals RMDs exclude Roth balance Employer-matched Roth contributions Reduction in RMD penalty Elimination of 457(b) “first day of the month” rule Public Safety Officer Emergency savings opportunities
Roth Catch-Up (if offering age 50 Catch-Up) Student Loan Debt Repayment Match PSO Insurance Premiums (if withdrawal is offered)
MissionSquare is your partner in navigating the provisions of the Setting Every Community Up for Retirement Enhancement (SECURE) Act and optimizing its impact on public service employees. 40 MissionSquare Retirement
Actions for Public Service
Employers to Take
Prepare Your Plan for Roth Catch-Up
Contributions
If your plan offers catch-up contributions,
you’ll need to amend your plan to include
Roth age-based catch-up contributions
before Jan. 1, 2026.

SECURE 2.0 requires this feature for
employees making over $145,000 per year.

Read the Guide
Amend Your Plan to Eliminate the “first
day of the month” Rule
SECURE 2.0 eliminates the 457(b) “first day
of the month” rule and allows deferral rate
elections to be made anytime prior to the
date compensation being deferred is
available.

How to Make
Plan Changes
41 MissionSquare Retirement
2024 Contribution Limits
* Special limitations apply to defined benefit plans. Please contact your defined benefit plan administrator should you require additional information. ** OBRA 1993 provided a governmental exception for the maximum compensation limit that grandfathers certain employees under the 1993 compensation limit of $235,840. Employees eligible to participate in a governmental plan, utilizing the ICMA-RC plan document, prior to Jan. 1, 1994, are subject to the maximum compensation limit of $235,840 as indexed and shown above as the “grandfather” limit. Employees eligible to participate in a governmental plan, utilizing the ICMA-RC plan document, after Jan. 1, 1994, are subject to the maximum compensation limit of $150,000 as indexed and shown above as “nongrandfather” limit.

Elective deferral limits for 457 and 401(k) plans increase Limitations (457) 2024 2023 2022
Annual Deferral Limit $23,000 $22,500 $20,500
“Pre-Retirement” Catch-Up Limit $23,000 ($46,000 total) $22,500 ($45,000 total) $20,500 ($41,000 total) “Age 50” Catch-Up Limit $7,500 ($30,500 total) $7,500 ($30,000 total) $6,500 ($27,000 total) More details on the retirement plan limits are available from the IRS.

Limitations (401(a) and 401(k)) 2024 2023 2022
401 Defined Contribution Plans—Annual
(§415(c)(1)(a)) $69,000 $66,000 $61,000
401 Defined Benefit Plans—Maximum Annual
Benefit* (§415(b)(1)(a)) $275,000 $265,000 $245,000
401 Annual Compensation Limit**
(nongrandfather/grandfather) (§401(a)(17)) $345,000/$505,000 $330,000/$490,000 $305,000/$450,000 Annual Deferral Limit for 401(k) Plans (§402(g)) $23,000 $22,500 $20,500 401(k) “Age 50” Catch-Up Limit (§414(v)) $7,500 ($30,500 total) $7,500 ($30,000 total) $6,500 ($27,000 total) 42 Technology
Developments
43 MissionSquare Retirement
Technology Enhancements
We continuously aim to provide improvements to better serve you and your participants.

Enrollment process enhanced. Systematic Distributions are now available online.

Fraud prevention updated to OneTime Passcode (OTP) requirement. Streamlined the enrollment
process
New enrollees will show in
reporting going forward
Employees are now able to set up
systematic distributions online
Installment payments can be
chosen by the employee
Increase security and reduce fraud
Unregistered accounts will require
a one-time passcode
If participants do not have access
to the email or phone number on
file, they will need to verify their
identity
44 MissionSquare Retirement
Questions?
City of Vallejo, California
457(b), 401(a), and RHS Plans
March 31, 2024 Performance Report
Private & Confidential |
For institutional use only, not for public distribution. Hyas Group is a separate business unit within Morgan Stanley Institutional Investment Advisors LLC.

Section 1 Market Overview
Section 2 Plan Overview
Section 3 Plan Review - 457(b) Deferred Compensation Plan Section 4 Plan Review - 401(a) Defined Contribution Plan Section 5 Plan Review - Retirement Health Savings
Section 6 Fund Review
Section 7 Fee Review - 457(b) Deferred Compensation Plan Section 8 Fee Review - 401(a) Defined Contribution Plan Section 9 Fee Review - Retirement Health Savings
Section 10 Fund Attributions
Table Of Contents
Section 1 | Market Overview
FIRST QUARTER 2024 MARKETS AND ECONOMIC UPDATE

GLOBAL ECONOMIC LANDSCAPE
Ì The Federal Reserve’s Summary of Economic Projections released in March 2024 kept the median expected federal funds rate forecast at

4.6% for the remaining of the year, implying three cuts by year-end, higher rates for longer, and a general view that rates may not return to pre-COVID levels, even if inflation reaches its target. Other economic phenomena such as higher domestic investment from reshoring and growth stemming from above-average immigration also have the potential to stoke demand and thereby increase interest rates.1 Ì An interesting aspect of the Federal Reserve’s governance tradition is its tendency to seek consensus and generally unanimity among its voting members. In fact, no Board Governor has cast a dissenting vote since 2005. In 2015 for example, some voting members of the Federal Open Markets Committee (FOMC) opposed the majority view that rate increases were necessary but were persuaded to vote in favor of them by adding the word “gradual” with respect to rate increases to the FOMC’s statement. A similar situation exists today wherein most but not all voting members agree on the next rate move. As such, it is possible the FOMC will use policy language to retain consensus.2 Ì The Bureau of Labor Statistics' March nonfarm payrolls report revealed a 303,000 increase in total positions, far surpassing consensus expectations of 214,000. This positive surprise follows an upward revision of 22,000 to job gains in the prior two months, marking a shift from a recent trend of negative revisions. Hiring in health care, government, construction, and leisure and hospitality paced this month's growth, with leisure and hospitality having now bounced back above its pre-pandemic levels. While most other industries showed limited changes in total positions, the breadth in job gains, measured by the diffusion index, increased in March. The data suggest a favorable backdrop for the labor market. The Fed faces the challenge of assessing the potential inflationary impact as it considers the future path of monetary policy.3 Ì With Asia moving back towards the pre-pandemic era of low inflation, the question has been posed as to why Central Banks in the region have not been cutting interest rates. In response, it is worth noting that in many cases inflation only recently moved back towards target ranges in the region. Additionally, the strong US dollar has increased the cost of imports within this region. As such, it is possible that foreign central banks might not begin cutting rates before the Federal Reserve does.4 Ì The European Central Bank has commented recently that wage dynamics are a key input for policy decisions. Germany in turn accounts for 30% of euro-area compensation. Negotiated wages within Germany, which serve as a forward-looking indicator of salary pressures, suggest increases in the range of 5.5% to 6.5% for the rest of 2024, with strong pickup in the public sector. While neighboring countries are not showing the same signs of acceleration, this dynamic may support a slower approach to monetary easing in the euro-zone.5 1 Source: Morgan Stanley, Higher for Longer, March 22, 2024 2 Source: Morgan Stanley, Building Bridges, April 5, 2024 3 Source: Morgan Stanley, Checking Labor Market Data and Previewing Inflation Data, April 9, 2024 4 Source: Morgan Stanley, The Viewpoint: What if Rate Cuts are Delayed, April 8, 2024 5 Source: Morgan Stanley, The Morgan Stanley Wage Tracker, April 9, 2024 1 FIXED INCOME MARKETS6
Ì In the first quarter, investors repriced their expectations for the Fed’s potential interest rate cuts, based on revived inflationary pressures and more robust growth data. As of late December, investors had anticipated six 0.25% cuts in 2024, which would have brought the lower end of the federal funds rate band to between 3.50% and 3.75% from 5.25% currently. Subsequently, investors have reduced their expectations on the incoming data flow, trimming expectations to just three cuts for the year. Despite the shift in Fed policy expectations, risky assets rallied sharply in the first quarter, as investors interpreted the backdrop as matching a “no-landing” scenario, potentially similar to the late 1990s (after the Fed’s 1994-1995 tightening campaign).

Ì At the start of the year, investment grade corporate bond’s credit spreads, though already tight, contracted further as economic and credit conditions remained robust, with monetary easing on the horizon. These developments may also be foreshadowing an increase in the supply of credit. After a break in 2023, companies have returned to the market to bolster their balance sheets in case of a downturn in the economy and in response to significantly lower borrowing costs compared to 2023. A key contributor to this rise in volume was to fund higher merger and acquisition activities. At the same time, despite the tight spreads, investors continued to absorb the high issuance volume given stillattractive all-in yields in light of looming rate cuts.

Ì Leveraged loans (also known as bank loans) continued to outperform in the first quarter. Thanks to friendly primary-market conditions, the market benefited from a wave of loan refinancings, which in turn has significantly diminished near-term refinancing needs. Fund flows have trended more positively in 2024, as investors have softened their concerns of a coming maturity wall.

Ì Like US corporate bonds, Emerging Market credit spreads tightened relative to Treasuries over the first quarter. Though results were positive in aggregate and generally reflective of more benign expectations, country-by-country returns were interestingly different with a handful of countries in Latin America and Emerging Europe and North Africa posting gains of over 20% for the quarter.

EQUITY MARKETS
Ì The S&P 500 Index delivered an outstanding 10% return in the first quarter of 2024, an extraordinary event considering the stellar fourth quarter 2023 rally and that the Index has not sustained as much as a 3% pullback over more than five months. Within the US Large Cap space, momentum (that is, the tendency of yesterday’s winners to continue outperforming) and improving liquidity appear to have been the primary tailwinds.7
Ì US Small and US Mid Cap returns, while positive, once again did not match those of US Large Caps in the first quarter of 2024. Factors such as greater sensitivity to interest rates, smaller allocations to the advancing technology sector, higher debt, and lower profitability levels have constituted a performance headwind to US Small and US Mid Cap stocks relative to their larger counterparts.8 6 Source: Morgan Stanley, Fixed Income Insights, April 2, 2024 7 Source: Morgan Stanley, Hot, Hot, Hot? April 8, 2024
8 Source: Morgan Stanley, Topics in Portfolio Construction, March 12, 2024 2 Ì Management comments among European corporations indicate a shift in focus that is indicative of an economic landscape that may be changing positively. Mentions within corporate earnings call transcripts of headwinds such as “economic uncertainty,” “energy costs,” and “higher wages” have declined while use of the term “green shoots” has moved higher.9

Ì The MSCI China Index returned -2.19% in the first quarter of 2024 versus 4.69% for the MSCI All-Country ex-USA Index, indicating continued headwinds to the Country’s equity markets. Corporate earnings reports within the first quarter generally fell short, with 8% of companies missing consensus earnings estimates. Analysts’ earnings expectations for most sectors also continue to be revised downwards. These bottomup forecasts combined with softening macroeconomic data suggest that growth may remain subdued versus the past several years.10

ALTERNATIVE INVESTMENTS
Ì Expectations for merger and acquisition (M&A) activity appear to be increasing in tandem with those of an end of the rate-hiking cycles in the United States and Europe. Necessity and opportunity may drive more M&A in unlisted private companies, where 1,200-plus companies are currently valued at $1 billion and up and private equity managers face pressure to monetize their investments. Global listed nonfinancial companies hold $5.6 trillion in cash, while private market investors sit on $2.5 trillion of dry powder (committed but so far unallocated capital), providing fuel for activity.11
Ì Private credit assets under management grew from $95 billion to $550 billion for the ten years ending in 2023. Although the asset class entails higher borrowing costs, other aspects such as a dearth of bank lending, greater speed and execution ability, and its ability to help stave off default served as demand tailwinds. However, with confidence growing that policy tightening is behind us and that the next Federal Reserve move will be a rate cut, the conditions that contributed to deal-execution uncertainty are fading. Public credit markets, for both broadly syndicated loans and high yield bonds, are showing strong signs of revival and issuance increases. Thus, the competitive advantage of execution certainty that private credit lenders offer may become less material.12 Ì Gold hit an all-time on April 2, 2024 on the back of multiple sources of demand. Central banks have been buying gold at a record pace with net purchases in 2022 and 2023 totaling 27% of the cumulative amount bought since 2010. Gold’s scarcity makes it a store of value during periods of economic, financial, and geopolitical uncertainty. Second, gold is a liquid asset. For example, gold’s trading volume averaged approximately $163 billion per day in 2023—about $2 billion more than US Treasury bills. Third, gold does not carry credit or counterparty risk.

Lastly, gold offers central banks a way to diversify their foreign exchange reserves, which are dominated by the US dollar. According to the International Monetary Fund, the US dollar comprised 58% of disclosed official foreign reserves last year.13 9 Source: Morgan Stanley, Thematic Drivers on the Rise, March 19, 2024. 10 Source: Morgan Stanley, 4Q23 Interim Earnings Cuts for MSCI China – Still Net Miss but Better than 3Q So Far, March 27, 2024 11 Source: Morgan Stanley, The Return of M&A, March 4, 2024. 12 Source: Morgan Stanley, Private Credit: Public Market Competitor or Complement, March 10, 2024. 13 Source: Morgan Stanley, Gold Rush, April 3, 2024
3 Disclosure:

The views and opinions expressed in this commentary are those of the portfolio manager at the time of this writing and do not necessarily represent those of Hyas Group, Morgan Stanley, its affiliates or its other employees. Of course, these views may change without notice in response to changing circumstances and market conditions. Furthermore, this commentary contains forward-looking statements and there can be no guarantee that they will come to pass. Historical data shown represents past performance and does not guarantee comparable future results. The information and statistical data contained herein have been obtained from sources that are believed to be reliable but in no way are guaranteed by Hyas Group as to accuracy or completeness.

It is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it.

Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. Index returns include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment. The indices selected by Hyas Group to measure performance are representative of broad asset classes. Hyas Group retains the right to change representative indices at any time. Performance of indices may be more or less volatile than any investment product. The risk of loss in value of a specific investment is not the same as the risk of loss in a broad market index. Therefore, the historical returns of an index will not be the same as the historical returns of a particular investment selected by a client. Past performance does not guarantee future results.

In addition to the general risks associated with real estate investments, REIT investing entails other risks such as credit and interest rate risk. Real estate investment risks can include fluctuations in the value of underlying properties; defaults by borrowers or tenants; market saturation; changes in general and local economic conditions; decreases in market rates for rents; increases in competition, property taxes, capital expenditures, or operating expenses; and other economic, political or regulatory occurrences affecting the real estate industry. Investing in commodities entails significant risks. The commodities markets may fluctuate widely based on a variety of factors including changes in supply and demand relationships; governmental programs and policies; national and international political and economic events; war and terrorist events; changes in interest and exchange rates; trading activities in commodities and related contracts; pestilence; weather; technological change; and, the price volatility of a commodity. In addition, the commodities markets are subject to temporary distortions or other disruptions due to various factors, including lack of liquidity, participation of speculators and government intervention.

For further information please contact Tom Breaden ([email protected]).

Hyas Group, 9755 SW Barnes Road, Suite 660, Portland, Oregon 97225; 503-634-1500 Hyas Group is a separate business unit within Morgan Stanley Institutional Investment Advisors LLC This report is being provided for informational purposed only. The information and opinions presented in this report do not constitute investment advice and have been obtained from sources believed by Hyas Group to be reliable. Hyas Group makes no representation as to their accuracy or completeness. All opinions expressed herein are subject to change. ©Morgan Stanley, 2024 CRC6546651 04/24
4 Recent 5-Yr High 5-Yr Low 5-Yr Avg. Date Recent 5-Yr High 5-Yr Low % Off Peak Date 303,000 4,505,000 -20,493,000 121,933 Mar-24 $3.40 $4.84 $1.80 -29.7% Mar-24

0.0% 0.1% 0.0% 0.0% Mar-24 $81.28 $114.84 $16.55 -29.2% Mar-24

10.7 22.2 4.0 11.1 Mar-24 322.2 322.2 214.4 50.3%* Jan-24 $34.69 $34.69 $27.78 $31.11 Mar-24 559.4 559.4 492.9 13.5%* Mar-24 Source: Federal Reserve Bank of St. Louis and Bureau of Labor Statistics *% Off Low Morningstar data as of 3/31/2024 Key: Economic Series Year-Over-Year Change
Average Hourly Earnings Medical Care CPI
1Q2024 Economic Data
Category
Jobs Added/Lost Monthly
Unemployment Rate
Median Unemployment Length (Weeks)
Category
Labor Market Statistics (Monthly) Other Prices and Indexes (Monthly) Gas: Price per Gallon
Spot Oil
Case-Shiller Home Price Index
-15%
-10%
-5%
0%
5%
10%
15%
$18,500
$19,500
$20,500
$21,500
$22,500
2Q19 1Q20 4Q20 3Q21 2Q22 1Q23 4Q23
$ Billion Gross Domestic Product YoY % Change
-10%
-5%
0%
5%
10%
15%
-10%
-5%
0%
5%
10%
15%
Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Sep-23 Mar-24 YoY % Change Unemployment
Rate Unemployment Rate
-90%
-60%
-30%
0%
30%
60%
90%
$1,400
$1,700
$2,000
$2,300
$2,600
$2,900
$3,200
2Q19 1Q20 4Q20 3Q21 2Q22 1Q23 4Q23
$ Billion Corporate Profits YoY % Change
-2%
0%
2%
4%
6%
8%
10%
245
260
275
290
305
Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Sep-23 Mar-24 Index Consumer Price Index YoY % Change
5 Index QTR YTD 1 yr. 3 yrs. 5 yrs. 10 yrs.
90-Day T-Bill 1.33% 1.33% 5.45% 2.89% 2.10% 1.44%
Bloomberg US Aggregate -0.78% -0.78% 1.70% -2.46% 0.36% 1.54% Bloomberg Short US Treasury 1.23% 1.23% 5.17% 2.42% 2.00% 1.40% Bloomberg Int. US Treasury -0.36% -0.36% 1.60% -1.40% 0.63% 1.14% Bloomberg Long US Treasury -3.26% -3.26% -6.08% -8.04% -2.78% 1.25% Bloomberg US TIPS -0.08% -0.08% 0.45% -0.53% 2.49% 2.21% Bloomberg US Credit -0.41% -0.41% 4.15% -1.86% 1.39% 2.49% Bloomberg US Mortgage-Backed -1.04% -1.04% 1.39% -2.84% -0.39% 1.12% Bloomberg US Asset-Backed 0.68% 0.68% 4.32% 0.50% 1.76% 1.82% Bloomberg US 20-Yr Municipal -0.31% -0.31% 4.09% -0.56% 1.91% 3.37% Bloomberg US High Yield 1.47% 1.47% 11.15% 2.19% 4.21% 4.44% Bloomberg Global -2.08% -2.08% 0.49% -4.73% -1.17% -0.07% Bloomberg International -3.21% -3.21% -0.71% -6.53% -2.49% -1.38% Bloomberg Emerging Market 1.53% 1.53% 8.43% -1.48% 1.07% 2.90% 1Q2024 Bond Market Data

5.49% 5.46% 5.38%

5.03%

4.59% 4.40% 4.21% 4.20% 4.20% 4.45% 4.34%

4.74% 4.85% 4.94%

4.64%

4.06% 3.81% 3.60% 3.55% 3.48%

3.81% 3.67%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%
1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr US Treasury Yield Curve
3/31/2024 3/31/2023
0%
0%
0%
13%
13%
3%
71%
0% 30% 60% 90%
NR
B>
BB
BBB
A
AA
AAA
Bloomberg US Aggregate Index
Credit Quality
23%
17%
11%
9%
4%
7%
28%
1%
0% 20% 40%
1-3 yrs.
3-5 yrs.
5-7 yrs.
7-10 yrs.
10-15 yrs.
15-20 yrs.
20-30 yrs.
30+ yrs
Bloomberg US Aggregate Index
Maturity Breakdown
Average Credit Quality AA Duration 6.08 yrs.

Source: Morningstar Source: Morningstar Source: Morningstar Source: Federal Reserve / Bank of America Source: Department of US Treasury

8.57 1.17

0.38 11.30

1.77 0.57

0.00 5.00 10.00 15.00
CCC
BBB
AAA
US Corporate Credit Spreads
1 Yr. Ago Qtr End
2%
1%
0%
21%
26%
1%
49%
0% 20% 40% 60%
Other
CMBS
Non-Agency MBS
Agency MBS
Corporate
Municipal
US Government
Bloomberg US Aggregate Index
Sector Breakdown
Source: Morningstar
6 Wgt. Sector QTR YTD 1 yr.
9% Communication Services 15.82% 15.82% 49.76% Index QTR YTD 1 yr. 3 yrs. 5 yrs. 10 yrs. 4% Energy 13.69% 13.69% 17.67% S&P 500 10.56% 10.56% 29.88% 11.49% 15.05% 12.96% 30% Information Technology 12.69% 12.69% 46.01% Russell 1000 Value 8.99% 8.99% 20.27% 8.11% 10.32% 9.01% 13% Financials 12.46% 12.46% 33.55% Russell 1000 Growth 11.41% 11.41% 39.00% 12.50% 18.52% 15.98% 9% Industrials 10.97% 10.97% 26.70% Russell Mid Cap 8.60% 8.60% 22.35% 6.07% 11.10% 9.95% 2% Materials 8.95% 8.95% 17.57% Russell Mid Cap Value 8.23% 8.23% 20.40% 6.80% 9.94% 8.57% 12% Health Care 8.85% 8.85% 16.09% Russell Mid Cap Growth 9.50% 9.50% 26.28% 4.62% 11.82% 11.35% 6% Consumer Staples 7.52% 7.52% 7.19% Russell 2000 5.18% 5.18% 19.71% -0.10% 8.10% 7.58% 10% Consumer Discretionary 4.98% 4.98% 28.73% Russell 2000 Value 2.90% 2.90% 18.75% 2.22% 8.17% 6.87% 2% Utilities 4.57% 4.57% 0.42% Russell 2000 Growth 7.58% 7.58% 20.35% -2.68% 7.38% 7.89% 2% Real Estate -0.55% -0.55% 9.60% Russell 3000 10.02% 10.02% 29.29% 9.78% 14.34% 12.33% Wgt. Sector QTR YTD 1 yr. DJ US Select REIT -0.39% -0.39% 10.45% 3.69% 2.99% 5.91% 9% Information Technology 18.25% 18.25% 32.77%
5% Energy 15.90% 15.90% 36.03%
5% Consumer Staples 14.25% 14.25% 27.37%
3% Utilities 13.16% 13.16% 0.66%
16% Consumer Discretionary 12.11% 12.11% 29.02%
22% Industrials 11.79% 11.79% 35.36%
16% Financials 8.26% 8.26% 26.68%
8% Health Care 7.16% 7.16% 7.26%
7% Materials 4.91% 4.91% 14.08%
7% Real Estate -2.91% -2.91% 4.42%
1% Communication Services -8.59% -8.59% -19.01%
Wgt. Sector QTR YTD 1 yr.
18% Industrials 9.66% 9.66% 34.19%
5% Energy 7.86% 7.86% 23.74%
15% Consumer Discretionary 5.76% 5.76% 24.46%
6% Materials 4.19% 4.19% 14.72%
10% Health Care 2.46% 2.46% 0.47%
7% Real Estate -0.59% -0.59% 10.76%
18% Financials -0.86% -0.86% 17.85%
3% Consumer Staples -2.45% -2.45% 3.39%
12% Information Technology -3.49% -3.49% 6.02%
3% Communication Services -3.55% -3.55% -1.13%
2% Utilities -6.08% -6.08% -12.44%
1Q2024 US Equity Market Data S&P Midcap 400 Index S&P Smallcap 600 Index Sectors Weights/Returns (ranked by quarter performance) Index Performance Data S&P 500 Index Annualized
-5.38%
-10.17%
-11.60%
-6.94%
-5.38%
-9.36%
-2.33%
-13.89%

1.56%
-5.96%
-40%
-30%
-20%
-10%
0%
10%
QTR 1 yr. 3 yrs. 5 yrs. 10 yrs. 2023 2022 2021 2020 2019 Small Cap (Russell 2000) - Large Cap (S&P 500)
Performance Spread

2.61%

17.77%

3.80%

7.64%

6.57%

29.55%
-20.99%

0.48%

35.39%

9.59%
-50%
-25%
0%
25%
50%
QTR 1 yr. 3 yrs. 5 yrs. 10 yrs. 2023 2022 2021 2020 2019 Growth (Russell 3000 Growth) - Value (Russell 3000 Value) Performance Spread
Small
Beating
Large
Large
Beating
Small
Growth
Beating
Value
Value
Beating
Source: Morningstar Growth
7 Index Performance Data (net) Top 10 Countries (MSCI AC World ex-USA) Index (US$) QTR YTD 1 yr. 3 yrs. 5 yrs. 10 yrs. Japan 15% MSCI ACWI ex-US 4.69% 4.69% 13.26% 1.94% 5.97% 4.25% UK 9% MSCI EAFE 5.78% 5.78% 15.32% 4.78% 7.33% 4.80% France 8% Europe 5.23% 5.23% 14.11% 6.19% 7.96% 4.44% Canada 8%
United Kingdom 3.10% 3.10% 10.86% 7.70% 5.14% 2.89% China 7% Germany 7.06% 7.06% 14.80% 1.10% 6.30% 2.72% Switzerland 6% France 5.88% 5.88% 12.15% 8.44% 9.49% 6.02% Germany 6%
Pacific 6.72% 6.72% 17.48% 2.31% 6.19% 5.58% India 5%
Japan 11.01% 11.01% 25.78% 3.69% 7.77% 6.69% Taiwan 5%
Hong Kong -11.67% -11.67% -22.86% -13.70% -6.98% 1.12% Australia 5% Australia 0.80% 0.80% 12.56% 5.07% 7.55% 4.47%
Canada 3.97% 3.97% 15.07% 6.33% 8.93% 4.85%
MSCI EM 2.37% 2.37% 8.15% -5.05% 2.22% 2.95%
MSCI EM Latin America -3.96% -3.96% 22.64% 10.46% 3.68% 1.67% MSCI EM Asia 3.35% 3.35% 6.27% -6.54% 2.82% 4.50%
MSCI EM Eur/Mid East 3.92% 3.92% 16.40% -4.73% -0.91% -1.56% MSCI ACWI Value ex-US 3.40% 3.40% 15.34% 4.58% 5.36% 3.20% MSCI ACWI Growth ex-US 5.91% 5.91% 11.22% -0.76% 6.24% 5.12% MSCI ACWI Sm Cap ex-US 2.11% 2.11% 12.80% 0.38% 6.24% 4.74% Exchange Rates QTR 4Q23 3Q23 2Q23 1Q23 4Q22
Japanese Yen 151.22 140.92 149.43 144.47 132.75 131.81
Euro 0.93 0.90 0.94 0.92 0.92 0.93
British Pound 0.79 0.78 0.82 0.79 0.81 0.83
Swiss Franc 0.90 0.84 0.91 0.89 0.91 0.92
Chinese Yuan 7.22 7.10 7.30 7.25 6.87 6.90
1Q2024 International Market Data

5.78%

15.32%

4.78%

7.33%

9.96%

18.82%

9.43%

9.36%
-10% 0% 10% 20% 30%
QTR
1 yr
3 yrs
5 yrs
MSCI EAFE Index Return
Local US$

2.37%

8.15%
-5.05%

2.22%

4.49%

10.61%
-2.36%

4.38%
-8% 0% 8% 16%
QTR
1 yr
3 yrs
5 yrs
MSCI Emerging Index Return
Local US$
-2.6%
-0.5% -1.6%

0.3% 0.5%
-10%
-5%
0%
5%
10%
QTR 1 yr 3 yrs 5 yrs 10 yrs
MSCI ACWI Ex US
Large v. Small Cap
Performance Spread

2.5%
-4.1% -5.3%

0.9% 1.9%
-20%
-10%
0%
10%
20%
QTR 1 yr 3 yrs 5 yrs 10 yrs
MSCI ACWI Ex US
Value v. Growth
Performance Spread
-2%
-1%
-3%
-1%
-2%
-7%
-12%
-10%
-6%
-4%
-1%
2%
-3%
-1%
-3%
-7%
1%
1%
2%
0%
-2%
-5%
-3%
-1%
-1%
-20%
-10%
0%
10%
20%
QTR 1 Yr 3 Yr 5 Yr 10 Yr
Foreign Currency v. US$ Returns
Euro Japanese Yen Pound Sterling Swiss Franc Chinese Yuan Europe
43%
Asia
31%
Canada
8%
Emerging
19%
Regional Exposure
MSCI ACWI ex-USA
Small
Beating
Large
Large
Beating
Small
Growth
Beating
Value
Value
Beating
Growth
Source: Federal Reserve Bank of St. Louis Performance Source: Morningstar Source: Morningstar
8 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1Q24 Emerging
Markets

78.51%
Small Cap

26.85%
Core Real
Estate

14.96%
Emerging
Markets

18.22%
Small Cap

38.82%
Large Cap

13.68%
Core Real
Estate

13.95%
Small Cap

21.30%
Emerging
Markets

37.28%
Core Real
Estate

7.36%
Large Cap

31.49%
Small Cap

19.96%
Large Cap

28.71%
Commod.

16.09%
Large Cap

26.29%
Large Cap

10.56%
High Yield

58.21%
Mid Cap

25.48%
TIPS

13.56%
Mid Cap

17.28%
Mid Cap

34.76%
Mid Cap

13.21%
Large Cap

1.38%
High Yield

17.12%
Intl

27.19%
Cash

1.69%
Mid Cap

30.54%
Large Cap

18.40%
Commod.

27.11%
Core Real
Estate

6.54%
Mid Cap

17.23%
Mid Cap

8.60%
Intl

41.45%
Emerging
Markets

18.88%
US Bonds

7.84%
Intl

16.83%
Large Cap

32.39%
Core Real
Estate

11.44%
US Bonds

0.55%
Mid Cap

13.79%
Large Cap

21.83%
US Bonds

0.01%
Small Cap

25.52%
Emerging
Markets

18.31%
Mid Cap

22.58%
Cash

2.05%
Small Cap

16.93%
Small Cap

5.18%
Mid Cap

40.48%
Commod.

16.83%
Global
Bonds

5.64%
Small Cap

16.35%
Intl

15.29%
US Bonds

5.97%
Cash

0.03%
Large Cap

11.95%
Mid Cap

18.52%
Global
Bonds
-1.20%
Intl

21.51%
Mid Cap

17.10%
Core Real
Estate

21.06%
High Yield
-11.19%
Global
Balanced

16.35%
Intl

4.69%
Small Cap

27.17%
Core Real
Estate

15.26%
High Yield

4.98%
Large Cap

16.00%
Global
Balanced

14.46%
Small Cap

4.89%
TIPS
-1.43%
Commod.

11.76%
Global
Balanced

15.87%
TIPS
-1.26%
Global
Balanced

18.86%
Global
Balanced

13.93%
Small Cap

14.82%
TIPS
-11.85%
Intl

15.62%
Global
Balanced

4.67%
Large Cap

26.46%
High Yield

15.12%
Large Cap

2.11%
High Yield

15.81%
Core Real
Estate

12.95%
TIPS

3.64%
Global
Balanced
-1.45%
Emerging
Markets

11.18%
Small Cap

14.65%
High Yield
-2.08%
Emerging
Markets

18.42%
TIPS

10.99%
Global
Balanced

10.94%
US Bonds
-13.01%
High Yield

13.45%
Emerging
Markets

2.37%
Global
Balanced

20.49%
Large Cap

15.06%
Cash

0.06%
Global
Balanced

11.06%
High Yield

7.44%
Global
Balanced

3.17%
Mid Cap
-2.43%
Core Real
Estate

7.76%
High Yield

7.50%
Large Cap
-4.38%
High Yield

14.32%
Intl

10.65%
Intl

7.82%
Intl
-16.00%
Emerging
Markets

9.83%
Commod.

2.19%
Commod.

18.91%
Intl

11.15%
Global
Balanced
-0.97%
Core Real
Estate

9.76%
Cash

0.07%
High Yield

2.45%
Global
Bonds
-3.15%
Global
Balanced

5.38%
Global
Bonds

7.39%
Global
Balanced
-5.30%
US Bonds

8.72%
Global
Bonds

9.20%
TIPS

5.96%
Global
Bonds
-16.25%
Global
Bonds

5.72%
High Yield

1.47%
TIPS

11.41%
Global
Balanced

9.40%
Mid Cap
-1.55%
TIPS

6.98%
US Bonds
-2.02%
Global
Bonds

0.59%
Small Cap
-4.41%
TIPS

4.68%
Core Real
Estate

6.66%
Mid Cap
-9.06%
TIPS

8.43%
US Bonds

7.51%
High Yield

5.28%
Global
Balanced
-16.40%
US Bonds

5.53%
Cash

1.33%
Global
Bonds

6.93%
US Bonds

6.54%
Small Cap
-4.18%
Global
Bonds

4.32%
Global
Bonds
-2.60%
Cash

0.04%
High Yield
-4.46%
Intl

4.50%
US Bonds

3.54%
Small Cap
-11.01%
Commod.

7.69%
High Yield

7.11%
Cash

0.05%
Mid Cap
-17.32%
Cash

5.27%
TIPS
-0.08%
US Bonds

5.93%
TIPS

6.31%
Commod.
-13.32%
US Bonds

4.21%
Emerging
Markets
-2.60%
Emerging
Markets
-2.18%
Intl
-5.66%
US Bonds

2.65%
TIPS

3.01%
Commod.
-11.25%
Global
Bonds

6.84%
Cash

0.37%
US Bonds
-1.54%
Large Cap
-18.11%
TIPS

3.90%
US Bonds
-0.78%
Cash

0.16%
Global
Bonds

5.54%
Intl
-13.71%
Cash

0.08%
TIPS
-8.61%
Intl
-3.86%
Emerging
Markets
-14.90%
Global
Bonds

2.09%
Commod.

1.70%
Intl
-14.20%
Core Real
Estate

4.41%
Core Real
Estate

0.35%
Emerging
Markets
-2.54%
Emerging
Markets
-20.09%
Commod.
-7.91%
Global
Bonds
-2.08%
Core Real
Estate
-30.40%
Cash

0.15%
Emerging
Markets
-18.42%
Commod.
-1.06%
Commod.
-9.52%
Commod.
-17.00%
Commod.
-24.60%
Cash

0.25%
Cash

0.71%
Emerging
Markets
-14.58%
Cash

2.30%
Commod.
-3.12%
Global
Bonds
-4.71%
Small Cap
-20.44%
Core Real
Estate
-12.73%
Core Real
Estate
-2.58%
Global Balanced is composed of 60% MSCI World Stock Index, 35% BBgBarc Global Aggregate Bond Index, and 5% US 90-Day T-Bills. Source: Morningstar; Core Real Estate Source: NCREIF Historical Market Returns
Ranked by Performance
9 Section 2 | Plan Overview
Hyas Group Contact Market Value: $57,330,497
Vincent Galindo
Senior Principal
[email protected]
Fixed Income

29.28%
Loans

1.56%
Asset Allocation

22.23%
International

8.18%
Small Cap

2.96%
Mid Cap

6.54% Large Cap

29.26%
Plan Notes
Fund: None at this time.

Governance: Investment Policy Statement last adopted April 2023.

Vendor Mgmt: None at this time.

Fund Notes
Fund Name Watch Status Cause Comments Recommendations Fund Assets ($) Allocation (%) MissionSquare PLUS Fund S11 Qualitative Significant manager change. Place on watch. 25,781 0.04 MissionSquare PLUS Fund R10 Qualitative Significant manager change. Place on watch. 12,342,311 21.53 Sterling Capital Total Return Bond R6 Qualitative Ownership change. Place on watch. 2,224,800 3.88 Vanguard US Growth Adm 2Q22 Quantitative Trailing Benchmark and Peer Group for 5 year period. Retain on watch. 7,042,687 12.28 City of Vallejo, California | 457(b), 401(a), and RHS Plans Plan Overview As of March 31, 2024
10 Section 3 | Plan Review - 457(b) Deferred Compensation Plan Cash Flow Summary
Beg Value (%)
of the Plan
Beg Value
$
Cash Flow
(+/-) Gain/Loss End Value (%)of the Plan
End Value
$
Total 100.00 51,438,635 (822,741) 2,839,363 100.00 53,455,256 Fixed Income 33.15 17,053,401 (434,430) 66,266 31.21 16,685,238 Large Cap 29.20 15,018,487 (267,492) 1,641,564 30.67 16,392,559 Mid Cap 6.43 3,307,579 55,049 318,429 6.89 3,681,056
Small Cap 3.39 1,744,148 (134,131) 83,289 3.17 1,693,306 International 8.51 4,378,175 65,767 197,482 8.68 4,641,425 Asset Allocation 19.16 9,855,543 (107,504) 531,443 19.23 10,279,483 SDBA 0.16 81,301 - 889 0.15 82,190
Plan Returns
Total Plan 40 Equity/60 Fixed 60 Equity/40 Fixed 80 Equity/20 Fixed 1 Quarter 1 Year

6.65 20.18

4.64 15.36

2.66 10.68

5.52 15.88
City of Vallejo, California | 457(b) Deferred Compensation Plan Plan Review As of March 31, 2024
Equity Indices: Russell 3000, MSCI ACWI ex USA; Fixed Indices: US Treasury 3 Mo T-Bill, Bloomberg Global Aggregate Bond (rebalanced quarterly). 11 Asset-ID Beg Balance $ Cash Flow
(+/-) Gain/Loss End Balance $ End Alloc % Participants
Fixed Income 17,053,401 (434,430) 66,266 16,685,238 31.21 - MissionSquare PLUS Fund R10 92208j709 12,533,362 (324,137) 91,083 12,300,308 23.01 215 Fidelity US Bond Index FXNAX 2,247,055 (67,296) (16,029) 2,163,730 4.05 71 Sterling Capital Total Return Bond R6 STRDX 2,272,984 (42,997) (8,788) 2,221,200 4.16 119 Large Cap 15,018,487 (267,492) 1,641,564 16,392,559 30.67 - MFS Value R6 MEIKX 1,943,440 (80,388) 169,079 2,032,131 3.80 147 Fidelity 500 Index FXAIX 6,555,837 268,351 707,673 7,531,861 14.09 218 Vanguard US Growth Adm VWUAX 6,519,210 (455,456) 764,812 6,828,566 12.77 180 Mid Cap 3,307,579 55,049 318,429 3,681,056 6.89 -
Allspring Special Mid Cap Value Fund WFPRX 683,289 (16,813) 61,309 727,784 1.36 127 Fidelity Mid Cap Index FSMDX 1,480,863 55,912 132,303 1,669,078 3.12 154 MFS Mid Cap Growth R6 OTCKX 1,143,427 15,950 124,817 1,284,194 2.40 99 Small Cap 1,744,148 (134,131) 83,289 1,693,306 3.17 -
Fidelity Small Cap Index FSSNX 1,744,148 (134,131) 83,289 1,693,306 3.17 162 International 4,378,175 65,767 197,482 4,641,425 8.68 - Vanguard International Value Inv VTRIX 769,181 19,173 32,079 820,433 1.53 124 Fidelity Total International Index FTIHX 2,773,283 108,839 124,659 3,006,781 5.62 148 Vanguard International Growth Adm VWILX 835,712 (62,245) 40,743 814,211 1.52 104 Asset Allocation 9,855,543 (107,504) 531,443 10,279,483 19.23 - Vanguard Target Retirement Income VTINX 254,844 1,203 5,545 261,593 0.49 8 Vanguard Target Retirement 2020 VTWNX 280,968 (19,111) 7,199 269,056 0.50 10 Vanguard Target Retirement 2025 VTTVX 1,265,914 10,925 48,665 1,325,503 2.48 29 Vanguard Target Retirement 2030 VTHRX 1,080,583 (43,768) 47,495 1,084,309 2.03 34 Vanguard Target Retirement 2035 VTTHX 2,322,423 25,838 122,852 2,471,113 4.62 35 Vanguard Target Retirement 2040 VFORX 974,256 28,276 58,276 1,060,807 1.98 21 Vanguard Target Retirement 2045 VTIVX 1,084,291 51,963 72,688 1,208,942 2.26 35 Vanguard Target Retirement 2050 VFIFX 1,478,778 (239,629) 88,898 1,328,046 2.48 49 Vanguard Target Retirement 2055 VFFVX 794,461 82,149 58,631 935,241 1.75 40 City of Vallejo, California | 457(b) Deferred Compensation Plan Plan Review As of March 31, 2024
12 City of Vallejo, California | 457(b) Deferred Compensation Plan Plan Review As of March 31, 2024
Asset-ID Beg Balance $ Cash Flow
(+/-) Gain/Loss End Balance $ End Alloc % Participants
Vanguard Target Retirement 2060 VTTSX 281,303 20,559 20,136 321,998 0.60 16 Vanguard Target Retirement 2065 VLXVX 37,723 (25,909) 1,059 12,874 0.02 2 SDBA 81,301 - 889 82,190 0.15 -
MissionSquare Brokerage 81,301 - 889 82,190 0.15 3
Total 51,438,635 (822,741) 2,839,363 53,455,256 100.00 - 13 Asset Allocation
Jun-2023
Ending
Market Value $
Ending
Market Value %
Sep-2023
Ending
Market Value $
Ending
Market Value %
Dec-2023
Ending
Market Value $
Ending
Market Value %
Mar-2024
Ending
Market Value $
Ending
Market Value %
Fixed Income 17,626,511 36.10 17,671,759 36.88 17,053,401 33.15 16,685,238 31.21 Large Cap 13,717,572 28.09 13,161,836 27.47 15,018,487 29.20 16,392,559 30.67 Mid Cap 3,090,687 6.33 2,940,164 6.14 3,307,579 6.43 3,681,056 6.89 Small Cap 1,621,129 3.32 1,535,654 3.20 1,744,148 3.39 1,693,306 3.17 International 4,255,675 8.72 3,961,926 8.27 4,378,175 8.51 4,641,425 8.68 Asset Allocation 8,514,146 17.44 8,646,659 18.04 9,855,543 19.16 10,279,483 19.23 SDBA - 0.00 - 0.00 81,301 0.16 82,190 0.15
Total 48,825,719 100.00 47,917,998 100.00 51,438,635 100.00 53,455,256 100.00 Cash Flow Summary
Jun-2023 Sep-2023 Dec-2023 Mar-2024
Participants 514 515 514 513
Calculated Return (%) 4.16 (2.61) 8.25 5.52
Cash Flow (+/-) $ 1,377 366,588 (433,447) (822,741)
Market Adjustment $ 1,948,363 (1,274,309) 3,954,083 2,839,363 Fee Summary
Jun-2023
Current % Est Asset $
Sep-2023
Current % Est Asset $
Dec-2023
Current % Est Asset $
Mar-2024
Current % Est Asset $
Record Keeper Fees 0.025 12,206 0.025 11,979 0.025 12,860 0.025 13,364 Administrative Fees 0.100 48,826 0.100 47,918 0.100 51,439 0.100 53,455 Weighted Investment Fees 0.202 98,872 0.196 94,054 0.191 98,446 0.188 100,559 City of Vallejo, California | 457(b) Deferred Compensation Plan Plan Review As of March 31, 2024
14 Historical Asset Allocation
Fixed Income
Large Cap
Mid Cap
Small Cap
International
Asset Allocation
SDBA
Loans

0.0%

20.0%

40.0%

60.0%

80.0%
100.0%
Jun-2023 Sep-2023 Dec-2023 Mar-2024
Jun-2023
Ending
Market Value $
Ending
Value %
Sep-2023
Ending
Market Value $
Ending
Value %
Dec-2023
Ending
Market Value $
Ending
Value %
Mar-2024
Ending
Market Value $
Ending
Value %
Fixed Income 17,626,511 35.4 17,671,759 36.2 17,053,401 32.6 16,685,238 30.7 Large Cap 13,717,572 27.6 13,161,836 26.9 15,018,487 28.7 16,392,559 30.2 Mid Cap 3,090,687 6.2 2,940,164 6.0 3,307,579 6.3 3,681,056 6.8 Small Cap 1,621,129 3.3 1,535,654 3.1 1,744,148 3.3 1,693,306 3.1 International 4,255,675 8.5 3,961,926 8.1 4,378,175 8.4 4,641,425 8.5 Asset Allocation 8,514,146 17.1 8,646,659 17.7 9,855,543 18.8 10,279,483 18.9 SDBA - 0.0 - 0.0 81,301 0.2 82,190 0.2
Loans 960,667 1.9 943,600 1.9 900,195 1.7 893,136 1.6
Total 49,786,387 100.0 48,861,598 100.0 52,338,830 100.0 54,348,392 100.0 Admin Account Balance
Jun-2023 Sep-2023 Dec-2023 Mar-2024
Admin Account $ 49,866 53,573 57,865 59,449
City of Vallejo, California | 457(b) Deferred Compensation Plan Plan Review As of March 31, 2024
15 Plan Value Over Time
0 9,300,000
18,600,000
27,900,000
37,200,000
46,500,000
55,800,000
65,100,000
2022 2023 YTD
45,140,909
51,438,635
53,455,256
2022 2023 YTD
Beginning Market Value $ 53,098,741 45,140,909 51,438,635 Cash Flow (+/-) $ 242,294 (582,147) (822,741)
Market Adjustment $ (8,200,126) 6,879,872 2,839,363
Ending Market Value $ 45,140,909 51,438,635 53,455,256
Participants 504 514 513
Average Participant Balance $ 89,565 100,075 104,201
City of Vallejo, California | 457(b) Deferred Compensation Plan Plan Review As of March 31, 2024
16 Historical Asset Allocation
Fixed Income
Large Cap
Mid Cap
Small Cap
International
Asset Allocation
Loans

0.0%

20.0%

40.0%

60.0%

80.0%
100.0%
2021 2022
Dec-2021
Ending
Value $
Ending
Value %
Dec-2022
Ending
Value $
Ending
Value %
Fixed Income 17,139,637 37.2
Large Cap 11,788,584 25.6
Mid Cap 2,971,128 6.4
Small Cap 1,663,708 3.6
International 4,050,786 8.8
Asset Allocation 7,527,066 16.3
Loans 929,306 2.0
Total 46,070,216 100.0
Admin Account Balance
Dec-2021 Dec-2022
Admin Account $ 28,338 43,455
City of Vallejo, CDOLIRUQLD | 457 Deferred Compensation Plan Plan Review 1

3
1

4,

1

100.0
17 Section 4 | Plan Review - 401(a) Defined Contribution Plan Cash Flow Summary
Beg Value (%)
of the Plan
Beg Value
$
Cash Flow
(+/-) Gain/Loss End Value (%)of the Plan
End Value
$
Total 100.00 482,511 24,708 33,249 100.00 540,468
Fixed Income 13.75 66,340 7,465 112 13.68 73,916
Large Cap 32.13 155,028 6,655 18,590 33.35 180,273
Mid Cap 6.36 30,712 1,293 2,866 6.45 34,871
Small Cap 0.06 279 220 42 0.10 541
International 3.58 17,263 2,558 954 3.84 20,775
Asset Allocation 44.12 212,889 6,518 10,685 42.57 230,092 Plan Returns
Total Plan 40 Equity/60 Fixed 60 Equity/40 Fixed 80 Equity/20 Fixed 1 Quarter 1 Year

6.65 20.18

4.64 15.36

2.66 10.68

6.88 20.25
City of Vallejo, California | 401(a) Defined Contribution Plan Plan Review As of March 31, 2024
Equity Indices: Russell 3000, MSCI ACWI ex USA; Fixed Indices: US Treasury 3 Mo T-Bill, Bloomberg Global Aggregate Bond (rebalanced quarterly). 18 Asset-ID Beg Balance $ Cash Flow
(+/-) Gain/Loss End Balance $ End Alloc % Participants
Fixed Income 66,340 7,465 112 73,916 13.68 -
MissionSquare PLUS Fund R10 92208j709 37,430 4,271 301 42,003 7.77 4 Fidelity US Bond Index FXNAX 26,958 1,549 (194) 28,313 5.24 4 Sterling Capital Total Return Bond R6 STRDX 1,951 1,645 4 3,600 0.67 4 Large Cap 155,028 6,655 18,590 180,273 33.35 -
MFS Value R6 MEIKX 141 134 26 301 0.06 3
Fidelity 500 Index FXAIX 69,783 2,262 7,615 79,659 14.74 5 Vanguard US Growth Adm VWUAX 85,104 4,259 10,949 100,312 18.56 7 Mid Cap 30,712 1,293 2,866 34,871 6.45 -
Allspring Special Mid Cap Value Fund WFPRX 85 134 24 243 0.05 3 Fidelity Mid Cap Index FSMDX 27,977 813 2,514 31,304 5.79 4 MFS Mid Cap Growth R6 OTCKX 2,650 346 328 3,324 0.61 3
Small Cap 279 220 42 541 0.10 -
Fidelity Small Cap Index FSSNX 279 220 42 541 0.10 3
International 17,263 2,558 954 20,775 3.84 -
Vanguard International Value Inv VTRIX 143 134 17 294 0.05 3 Fidelity Total International Index FTIHX 15,655 1,850 830 18,334 3.39 4 Vanguard International Growth Adm VWILX 1,465 574 108 2,147 0.40 1 Asset Allocation 212,889 6,518 10,685 230,092 42.57 -
Vanguard Target Retirement Income VTINX - - - - 0.00 -
Vanguard Target Retirement 2020 VTWNX 12,320 2,696 412 15,428 2.85 1 Vanguard Target Retirement 2025 VTTVX 6,231 (2,124) 217 4,323 0.80 1 Vanguard Target Retirement 2030 VTHRX 130,382 (7,235) 5,449 128,595 23.79 6 Vanguard Target Retirement 2035 VTTHX 19,309 3,978 1,217 24,504 4.53 3 Vanguard Target Retirement 2040 VFORX 21,217 5,262 1,593 28,072 5.19 5 Vanguard Target Retirement 2045 VTIVX 12,555 1,911 900 15,367 2.84 5 Vanguard Target Retirement 2050 VFIFX 6,292 448 454 7,194 1.33 2 Vanguard Target Retirement 2055 VFFVX 4,585 1,581 443 6,608 1.22 2 City of Vallejo, California | 401(a) Defined Contribution Plan Plan Review As of March 31, 2024
19 City of Vallejo, California | 401(a) Defined Contribution Plan Plan Review As of March 31, 2024
Asset-ID Beg Balance $ Cash Flow
(+/-) Gain/Loss End Balance $ End Alloc % Participants
Vanguard Target Retirement 2060 VTTSX - - - - 0.00 -
Vanguard Target Retirement 2065 VLXVX - - - - 0.00 -
Total 482,511 24,708 33,249 540,468 100.00 -
20 Asset Allocation
Jun-2023
Ending
Market Value $
Ending
Market Value %
Sep-2023
Ending
Market Value $
Ending
Market Value %
Dec-2023
Ending
Market Value $
Ending
Market Value %
Mar-2024
Ending
Market Value $
Ending
Market Value %
Fixed Income 66,157 14.74 65,545 15.04 66,340 13.75 73,916 13.68 Large Cap 141,583 31.54 136,289 31.27 155,028 32.13 180,273 33.35 Mid Cap 28,639 6.38 27,258 6.25 30,712 6.36 34,871 6.45 Small Cap 261 0.06 253 0.06 279 0.06 541 0.10
International 16,365 3.65 15,663 3.59 17,263 3.58 20,775 3.84 Asset Allocation 195,916 43.64 190,883 43.79 212,889 44.12 230,092 42.57 Total 448,920 100.00 435,891 100.00 482,511 100.00 540,468 100.00 Cash Flow Summary
Jun-2023 Sep-2023 Dec-2023 Mar-2024
Participants 32 32 33 33
Calculated Return (%) 5.42 (3.17) 10.22 6.88
Cash Flow (+/-) $ 1,301 1,214 2,061 24,708
Market Adjustment $ 23,009 (14,243) 44,559 33,249
Fee Summary
Jun-2023
Current % Est Asset $
Sep-2023
Current % Est Asset $
Dec-2023
Current % Est Asset $
Mar-2024
Current % Est Asset $
Record Keeper Fees 0.025 112 0.025 109 0.025 121 0.025 135 Administrative Fees 0.100 449 0.100 436 0.100 483 0.100 540 Weighted Investment Fees 0.118 528 0.109 477 0.108 521 0.111 599 City of Vallejo, California | 401(a) Defined Contribution Plan Plan Review As of March 31, 2024
21 Historical Asset Allocation
Fixed Income
Large Cap
Mid Cap
Small Cap
International
Asset Allocation

0.0%

20.0%

40.0%

60.0%

80.0%
100.0%
Jun-2023 Sep-2023 Dec-2023 Mar-2024
Jun-2023
Ending
Market Value $
Ending
Value %
Sep-2023
Ending
Market Value $
Ending
Value %
Dec-2023
Ending
Market Value $
Ending
Value %
Mar-2024
Ending
Market Value $
Ending
Value %
Fixed Income 66,157 14.7 65,545 15.0 66,340 13.7 73,916 13.7 Large Cap 141,583 31.5 136,289 31.3 155,028 32.1 180,273 33.4 Mid Cap 28,639 6.4 27,258 6.3 30,712 6.4 34,871 6.5
Small Cap 261 0.1 253 0.1 279 0.1 541 0.1
International 16,365 3.6 15,663 3.6 17,263 3.6 20,775 3.8 Asset Allocation 195,916 43.6 190,883 43.8 212,889 44.1 230,092 42.6 Total 448,920 100.0 435,891 100.0 482,511 100.0 540,468 100.0 Admin Account Balance
Jun-2023 Sep-2023 Dec-2023 Mar-2024
Admin Account $ 967 1,083 1,204 1,328
City of Vallejo, California | 401(a) Defined Contribution Plan Plan Review As of March 31, 2024
22 Plan Value Over Time
0 100,000
200,000
300,000
400,000
500,000
600,000
700,000
2022 2023 YTD
425,460
482,511
540,468
2022 2023 YTD
Beginning Market Value $ 481,818 425,460 482,511
Cash Flow (+/-) $ 35,957 (23,650) 24,708
Market Adjustment $ (92,315) 80,701 33,249
Ending Market Value $ 425,460 482,511 540,468
Participants 35 33 33
Average Participant Balance $ 12,156 14,622 16,378
City of Vallejo, California | 401(a) Defined Contribution Plan Plan Review As of March 31, 2024
23 Historical Asset Allocation
Fixed Income
Large Cap
Mid Cap
Small Cap
International
Asset Allocation
Loans

0.0%

20.0%

40.0%

60.0%

80.0%
100.0%
2021 2022
Dec-2021
Ending
Value $
Ending
Value %
Dec-2022
Ending
Value $
Ending
Value %
Fixed Income 107,940 24.7
Large Cap 110,015 25.2
Mid Cap 27,140 6.2
Small Cap 242 0.1
International 18,446 4.2
Asset Allocation 161,678 37.1
Loans 10,859 2.5
Total 436,320 100.0
Admin Account Balance
Dec-2021 Dec-2022
Admin Account $ - 737
City of Vallejo, CDOLIRUQLD | 401(a) Defined Contribution Plan Plan Review 1
1

2
0.

1 3

4 100.0
24 Section 5 | Plan Review - Retirement Health Savings
Cash Flow Summary
Beg Value (%)
of the Plan
Beg Value
$
Cash Flow
(+/-) Gain/Loss End Value (%)of the Plan
End Value
$
Total 100.00 2,310,418 66,728 146,702 100.00 2,523,847
Fixed Income 1.18 27,293 (1,637) 165 1.02 25,821
Large Cap 7.36 169,941 11,322 20,404 7.99 201,668
Mid Cap 1.23 28,396 (161) 2,443 1.22 30,678
Small Cap 0.17 3,890 (471) 166 0.14 3,585
International 0.80 18,456 5,732 1,171 1.00 25,359
Asset Allocation 89.27 2,062,442 51,943 122,352 88.62 2,236,736 Plan Returns
Total Plan 40 Equity/60 Fixed 60 Equity/40 Fixed 80 Equity/20 Fixed 1 Quarter 1 Year

6.65 20.18

4.64 15.36

2.66 10.68

6.34 19.25
City of Vallejo, California | Retirement Health Savings Plan Plan Review As of March 31, 2024
Equity Indices: Russell 3000, MSCI ACWI ex USA; Fixed Indices: US Treasury 3 Mo T-Bill, Bloomberg Global Aggregate Bond (rebalanced quarterly). 25 Asset-ID Beg Balance $ Cash Flow
(+/-) Gain/Loss End Balance $ End Alloc % Participants
Fixed Income 27,293 (1,637) 165 25,821 1.02 -
MissionSquare PLUS Fund S11 92211r318 25,117 479 186 25,781 1.02 11 Fidelity US Bond Index FXNAX 2,156 (2,116) (21) 20 0.00 1 Sterling Capital Total Return Bond R6 STRDX 20 - - 20 0.00 1 Large Cap 169,941 11,322 20,404 201,668 7.99 -
MFS Value R6 MEIKX 203 23 19 245 0.01 3
Fidelity 500 Index FXAIX 74,038 5,357 8,219 87,614 3.47 25 Vanguard US Growth Adm VWUAX 95,700 5,942 12,166 113,808 4.51 24 Mid Cap 28,396 (161) 2,443 30,678 1.22 -
Allspring Special Mid Cap Value Fund WFPRX 1,040 162 108 1,310 0.05 3 Fidelity Mid Cap Index FSMDX 25,809 (1,686) 2,010 26,133 1.04 11 MFS Mid Cap Growth R6 OTCKX 1,547 1,363 325 3,235 0.13 4 Small Cap 3,890 (471) 166 3,585 0.14 -
Fidelity Small Cap Index FSSNX 3,890 (471) 166 3,585 0.14 5 International 18,456 5,732 1,171 25,359 1.00 -
Vanguard International Value Inv VTRIX - - - - 0.00 -
Fidelity Total International Index FTIHX 18,456 5,732 1,171 25,359 1.00 10 Vanguard International Growth Adm VWILX - - - - 0.00 -
Asset Allocation 2,062,442 51,943 122,352 2,236,736 88.62 - Vanguard Target Retirement Income VTINX 5,948 241 134 6,322 0.25 5 Vanguard Target Retirement 2020 VTWNX 65,963 1,036 1,891 68,890 2.73 24 Vanguard Target Retirement 2025 VTTVX 185,647 5,012 7,229 197,888 7.84 42 Vanguard Target Retirement 2030 VTHRX 189,007 (837) 8,536 196,706 7.79 41 Vanguard Target Retirement 2035 VTTHX 211,134 5,457 11,283 227,875 9.03 56 Vanguard Target Retirement 2040 VFORX 346,929 6,093 20,563 373,585 14.80 81 Vanguard Target Retirement 2045 VTIVX 367,978 12,102 24,278 404,357 16.02 98 Vanguard Target Retirement 2050 VFIFX 433,365 12,509 30,372 476,247 18.87 118 Vanguard Target Retirement 2055 VFFVX 216,090 8,574 15,268 239,931 9.51 91 City of Vallejo, California | Retirement Health Savings Plan Plan Review As of March 31, 2024
26 City of Vallejo, California | Retirement Health Savings Plan Plan Review As of March 31, 2024
Asset-ID Beg Balance $ Cash Flow
(+/-) Gain/Loss End Balance $ End Alloc % Participants
Vanguard Target Retirement 2060 VTTSX 36,643 1,013 2,504 40,160 1.59 36 Vanguard Target Retirement 2065 VLXVX 3,739 743 293 4,775 0.19 6 Total 2,310,418 66,728 146,702 2,523,847 100.00 -
27 Asset Allocation
Jun-2023
Ending
Market Value $
Ending
Market Value %
Sep-2023
Ending
Market Value $
Ending
Market Value %
Dec-2023
Ending
Market Value $
Ending
Market Value %
Mar-2024
Ending
Market Value $
Ending
Market Value %
Fixed Income 23,757 1.16 24,722 1.21 27,293 1.18 25,821 1.02 Large Cap 134,514 6.59 143,063 7.01 169,941 7.36 201,668 7.99 Mid Cap 23,880 1.17 23,367 1.14 28,396 1.23 30,678 1.22 Small Cap 4,327 0.21 4,468 0.22 3,890 0.17 3,585 0.14
International 17,346 0.85 17,571 0.86 18,456 0.80 25,359 1.00 Asset Allocation 1,836,337 90.01 1,828,064 89.56 2,062,442 89.27 2,236,736 88.62 Total 2,040,162 100.00 2,041,255 100.00 2,310,418 100.00 2,523,847 100.00 Cash Flow Summary
Jun-2023 Sep-2023 Dec-2023 Mar-2024
Participants 564 580 595 615
Calculated Return (%) 5.05 (3.43) 10.53 6.34
Cash Flow (+/-) $ 86,266 71,079 54,069 66,728
Market Adjustment $ 94,119 (69,985) 215,093 146,702
Fee Summary
Jun-2023
Current % Est Asset $
Sep-2023
Current % Est Asset $
Dec-2023
Current % Est Asset $
Mar-2024
Current % Est Asset $
Record Keeper Fees 1.241 25,321 1.260 25,726 1.194 27,582 1.159 29,256 Weighted Investment Fees 0.087 1,771 0.085 1,739 0.085 1,968 0.086 2,164 City of Vallejo, California | Retirement Health Savings Plan Plan Review As of March 31, 2024
28 Historical Asset Allocation
Fixed Income
Large Cap
Mid Cap
Small Cap
International
Asset Allocation

0.0%

20.0%

40.0%

60.0%

80.0%
100.0%
Jun-2023 Sep-2023 Dec-2023 Mar-2024
Jun-2023
Ending
Market Value $
Ending
Value %
Sep-2023
Ending
Market Value $
Ending
Value %
Dec-2023
Ending
Market Value $
Ending
Value %
Mar-2024
Ending
Market Value $
Ending
Value %
Fixed Income 23,757 1.2 24,722 1.2 27,293 1.2 25,821 1.0 Large Cap 134,514 6.6 143,063 7.0 169,941 7.4 201,668 8.0 Mid Cap 23,880 1.2 23,367 1.1 28,396 1.2 30,678 1.2
Small Cap 4,327 0.2 4,468 0.2 3,890 0.2 3,585 0.1
International 17,346 0.9 17,571 0.9 18,456 0.8 25,359 1.0 Asset Allocation 1,836,337 90.0 1,828,064 89.6 2,062,442 89.3 2,236,736 88.6 Total 2,040,162 100.0 2,041,255 100.0 2,310,418 100.0 2,523,847 100.0 City of Vallejo, California | Retirement Health Savings Plan Plan Review As of March 31, 2024
29 Plan Value Over Time
0 450,000
900,000
1,350,000
1,800,000
2,250,000
2,700,000
3,150,000
2022 2023 YTD
1,701,645
2,310,418
2,523,847
2022 2023 YTD
Beginning Market Value $ 1,778,538 1,701,645 2,310,418
Cash Flow (+/-) $ 246,659 259,426 66,728
Market Adjustment $ (323,552) 349,348 146,702
Ending Market Value $ 1,701,645 2,310,418 2,523,847
Participants 535 595 615
Average Participant Balance $ 3,181 3,883 4,104
City of Vallejo, California | Retirement Health Savings Plan Plan Review As of March 31, 2024
30 Historical Asset Allocation
Fixed Income
Large Cap
Mid Cap
Small Cap
International
Asset Allocation

0.0%

20.0%

40.0%

60.0%

80.0%
100.0%
2021 2022
Dec-2021
Ending
Value $
Ending
Value %
Dec-2022
Ending
Value $
Ending
Value %
Fixed Income 21,364 1.3
Large Cap 93,477 5.5
Mid Cap 20,430 1.2
Small Cap 2,904 0.2
International 14,653 0.9
Asset Allocation 1,548,817 91.0
Total 1,701,645 100.0
City of Vallejo, CDOLIRUQLD | Retirement Health Savings Plan Plan Review

2,04 0.
0.
1, 9
1,7 100.0
31 Section 6 | Fund Review
Fund Name Asset-ID Expense Ratio 5 Year Return
Difference 5 Year Rank Watch Status QualitativeFactors Quantitative Factors MissionSquare PLUS Fund R10 92208j709 0.31 0.14 13 z z
MissionSquare PLUS Fund S11 92211r318 0.31 0.18 12 z z
Sterling Capital Total Return Bond R6 STRDX 0.36 0.62 12 z z MFS Value R6 MEIKX 0.44 0.53 49 zz
Vanguard US Growth Adm VWUAX 0.20 -3.42 54 2Q22 z z
Allspring Special Mid Cap Value Fund WFPRX 0.70 2.27 21 zz MFS Mid Cap Growth R6 OTCKX 0.66 -0.15 32 z z
Vanguard International Value Inv VTRIX 0.39 1.32 44 zz
Vanguard International Growth Adm VWILX 0.31 2.47 20 z z Fund Name Asset-ID Expense Ratio 5 Year Return
Difference 5 Year Rank Watch Status QualitativeFactors Quantitative Factors Fidelity US Bond Index FXNAX 0.03 -0.03 51 z z
Fidelity 500 Index FXAIX 0.02 -0.01 18 zz
Fidelity Mid Cap Index FSMDX 0.03 0.00 45 z z
Fidelity Small Cap Index FSSNX 0.03 0.10 70 zz
Fidelity Total International Index FTIHX 0.06 0.02 70 z z City of Vallejo, California | 457(b), 401(a), and RHS Plans Manager Scorecard As of March 31, 2024
Options employing active management are expected to outperform their stated asset class or style benchmark net of all management fees over a trailing five-year time period; and to rank above the 50th percentile of the appropriate peer group for the same trailing five-year time period. Passive options are expected to track the performance of the index strategy that the option is designed to replicate, less management fees, with marginal tracking error. Certain passive investment options may engage in a method of 'Fair Value Pricing.' Discrepancies in performance between the applicable investment option and its performance benchmark that are due to 'Fair Value Pricing' and other common index fund tracking factors will be taken into consideration in evaluating performance.
32 Fund Name Asset-ID Expense Ratio 5 Year Return
Difference 5 Year Rank Watch Status QualitativeFactors Quantitative Factors Vanguard Target Retirement Income VTINX 0.08 -0.29 41 z z Vanguard Target Retirement 2020 VTWNX 0.08 -0.36 44 zz
Vanguard Target Retirement 2025 VTTVX 0.08 -0.44 25 z z Vanguard Target Retirement 2030 VTHRX 0.08 -0.44 32 zz
Vanguard Target Retirement 2035 VTTHX 0.08 -0.42 47 z z Vanguard Target Retirement 2040 VFORX 0.08 -0.41 51 zz
Vanguard Target Retirement 2045 VTIVX 0.08 -0.40 42 z z Vanguard Target Retirement 2050 VFIFX 0.08 -0.42 39 zz
Vanguard Target Retirement 2055 VFFVX 0.08 -0.43 44 z z Vanguard Target Retirement 2060 VTTSX 0.08 -0.43 47 zz
Vanguard Target Retirement 2065 VLXVX 0.08 -0.44 63 z z City of Vallejo, California | 457(b), 401(a), and RHS Plans Manager Scorecard As of March 31, 2024
Target Date funds will be evaluated based on performance of the entire suite as held within the plan(s). A target date suite will generally be viewed as being in violation of investment policy performance criteria if over one-half of the funds in the target date suite held within the plan(s) lag the prescribed performance measures within your investment policy. 33 Performance Review
Performance (%)
QTR 1 Yr 3 Yr 5 Yr 10 Yr 2023 2022 2021 2020 2019 2018
MissionSquare PLUS Fund R10 0.74 2.91 2.30 2.29 2.20 2.78 1.97 1.89 2.22 2.45 2.27 US T-Bill CMT 5 Year 1.01 4.14 2.92 2.16 2.03 4.07 3.00 0.85 0.54 1.96 2.75 +/- Index (0.27) (1.23) (0.62) 0.13 0.17 (1.29) (1.03) 1.04 1.68 0.49 (0.48) IM U.S. GIC/Stable Value (SA+CF) Rank 18 27 20 13 11 30 8 9 17 29 11 MissionSquare PLUS Fund S11 0.98 3.16 2.38 2.34 2.22 2.77 1.96 1.89 2.22 2.45 2.27 US T-Bill CMT 5 Year 1.01 4.14 2.92 2.16 2.03 4.07 3.00 0.85 0.54 1.96 2.75 +/- Index (0.03) (0.98) (0.54) 0.18 0.19 (1.30) (1.04) 1.04 1.68 0.49 (0.48) IM U.S. GIC/Stable Value (SA+CF) Rank 5 19 12 12 11 31 9 9 18 29 11 Fidelity US Bond Index (0.72) 1.69 (2.48) 0.33 1.52 5.56 (13.03) (1.79) 7.80 8.48 0.01 Blmbg. U.S. Aggregate Index (0.78) 1.70 (2.46) 0.36 1.54 5.53 (13.01) (1.55) 7.51 8.72 0.01 +/- Index 0.06 (0.01) (0.02) (0.03) (0.02) 0.03 (0.02) (0.24) 0.29 (0.24) 0.00 Intermediate Core Bond Rank 60 55 41 51 42 53 30 63 49 50 27 Sterling Capital Total Return Bond R6 (0.39) 2.47 (2.24) 0.98 1.99 5.97 (13.15) (1.12) 9.35 9.37 (0.27) Blmbg. U.S. Aggregate Index (0.78) 1.70 (2.46) 0.36 1.54 5.53 (13.01) (1.55) 7.51 8.72 0.01 +/- Index 0.39 0.77 0.22 0.62 0.45 0.44 (0.14) 0.43 1.84 0.65 (0.28) Intermediate Core Bond Rank 27 23 22 12 7 29 36 27 16 17 42 MFS Value R6 8.84 19.56 8.65 10.84 9.57 8.29 (5.80) 25.55 4.03 30.18 (9.78) Russell 1000 Value Index 8.99 20.27 8.11 10.31 9.01 11.46 (7.54) 25.16 2.80 26.54 (8.27) +/- Index (0.15) (0.71) 0.54 0.53 0.56 (3.17) 1.74 0.39 1.23 3.64 (1.51) Large Value Rank 50 61 57 49 30 75 54 57 37 8 65
Fidelity 500 Index 10.55 29.87 11.48 15.04 12.95 26.29 (18.13) 28.69 18.40 31.47 (4.40) S&P 500 Index 10.56 29.88 11.49 15.05 12.96 26.29 (18.11) 28.71 18.40 31.49 (4.38) +/- Index (0.01) (0.01) (0.01) (0.01) (0.01) 0.00 (0.02) (0.02) 0.00 (0.02) (0.02) Large Blend Rank 42 34 22 18 8 24 50 20 35 22 24
City of Vallejo, California | 457(b), 401(a), and RHS Plans Plan Review As of March 31, 2024
34 City of Vallejo, California | 457(b), 401(a), and RHS Plans Plan Review As of March 31, 2024
Performance (%)
QTR 1 Yr 3 Yr 5 Yr 10 Yr 2023 2022 2021 2020 2019 2018
Vanguard US Growth Adm 12.22 40.80 3.92 15.10 14.23 45.31 (39.58) 12.45 58.74 33.51 0.75 Russell 1000 Growth Index 11.41 39.00 12.50 18.52 15.98 42.68 (29.14) 27.60 38.49 36.39 (1.51) +/- Index 0.81 1.80 (8.58) (3.42) (1.75) 2.63 (10.44) (15.15) 20.25 (2.88) 2.26 Large Growth Rank 54 35 88 54 38 21 91 87 9 43 27
Allspring Special Mid Cap Value Fund 9.15 18.66 9.79 12.21 9.87 9.62 (4.50) 28.80 3.36 35.68 (13.02) Russell Midcap Value Index 8.23 20.40 6.80 9.94 8.57 12.71 (12.03) 28.34 4.96 27.06 (12.29) +/- Index 0.92 (1.74) 2.99 2.27 1.30 (3.09) 7.53 0.46 (1.60) 8.62 (0.73) Mid-Cap Value Rank 33 66 19 21 12 80 22 50 46 2 44
Fidelity Mid Cap Index 8.61 22.35 6.07 11.10 9.95 17.21 (17.28) 22.56 17.11 30.51 (9.05) Russell Midcap Index 8.60 22.35 6.07 11.10 9.95 17.23 (17.32) 22.58 17.10 30.54 (9.06) +/- Index 0.01 0.00 0.00 0.00 0.00 (0.02) 0.04 (0.02) 0.01 (0.03) 0.01 Mid-Cap Blend Rank 63 54 57 45 14 29 70 65 25 25 27
MFS Mid Cap Growth R6 10.78 25.17 4.13 11.67 12.09 21.50 (28.29) 14.17 35.80 37.93 1.21 Russell Midcap Growth Index 9.50 26.28 4.62 11.82 11.35 25.87 (26.72) 12.73 35.59 35.47 (4.75) +/- Index 1.28 (1.11) (0.49) (0.15) 0.74 (4.37) (1.57) 1.44 0.21 2.46 5.96 Mid-Cap Growth Rank 33 34 22 32 10 42 50 38 52 21 9
Fidelity Small Cap Index 5.19 19.83 (0.02) 8.21 7.74 17.12 (20.27) 14.71 19.99 25.71 (10.88) Russell 2000 Index 5.18 19.71 (0.10) 8.10 7.58 16.93 (20.44) 14.82 19.96 25.53 (11.01) +/- Index 0.01 0.12 0.08 0.11 0.16 0.19 0.17 (0.11) 0.03 0.18 0.13 Small Blend Rank 58 42 85 70 53 38 79 88 14 33 33
Vanguard International Value Inv 4.01 11.17 2.91 6.68 4.20 16.15 (11.66) 7.97 8.99 20.39 (14.52) MSCI AC World ex USA Value (Net) 3.40 15.34 4.58 5.36 3.20 17.30 (8.59) 10.46 (0.77) 15.72 (13.97) +/- Index 0.61 (4.17) (1.67) 1.32 1.00 (1.15) (3.07) (2.49) 9.76 4.67 (0.55) Foreign Large Value Rank 58 74 82 44 31 67 72 87 5 30 27 35 City of Vallejo, California | 457(b), 401(a), and RHS Plans Plan Review As of March 31, 2024
Performance (%)
QTR 1 Yr 3 Yr 5 Yr 10 Yr 2023 2022 2021 2020 2019 2018
Fidelity Total International Index 4.26 12.81 1.72 6.02 - 15.51 (16.28) 8.47 11.07 21.48 (14.38) MSCI AC World ex USA IMI (Net) 4.33 13.20 1.72 6.00 4.32 15.62 (16.58) 8.53 11.12 21.63 (14.76) +/- Index (0.07) (0.39) 0.00 0.02 - (0.11) 0.30 (0.06) (0.05) (0.15) 0.38 Foreign Large Blend Rank 78 57 74 70 - 64 58 70 39 60 42 Vanguard International Growth Adm 5.29 7.46 (5.68) 8.70 7.73 14.81 (30.79) (0.74) 59.74 31.48 (12.58) MSCI AC World ex USA Growth (Net) 5.91 11.22 (0.76) 6.24 5.12 14.03 (23.05) 5.09 22.20 27.34 (14.43) +/- Index (0.62) (3.76) (4.92) 2.46 2.61 0.78 (7.74) (5.83) 37.54 4.14 1.85 Foreign Large Growth Rank 60 85 92 20 10 69 84 87 2 23 36 Vanguard Target Retirement Income 2.17 8.47 1.23 4.14 4.14 10.65 (12.74) 5.25 10.02 13.16 (1.99) Vanguard Target Income Composite Index (Net) 2.15 8.70 1.44 4.44 4.37 10.80 (12.44) 5.44 10.70 13.41 (1.97) +/- Index 0.02 (0.23) (0.21) (0.30) (0.23) (0.15) (0.30) (0.19) (0.68) (0.25) (0.02) Target-Date Retirement Rank 69 63 46 41 28 45 52 63 29 46 15 Vanguard Target Retirement 2020 2.83 10.42 1.98 5.60 5.63 12.51 (14.15) 8.17 12.04 17.63 (4.24) Vanguard Target 2020 Composite Index (Net) 2.86 10.70 2.26 5.96 5.91 12.65 (13.77) 8.43 12.85 17.87 (4.13) +/- Index (0.03) (0.28) (0.28) (0.36) (0.28) (0.14) (0.38) (0.26) (0.81) (0.24) (0.11) Target-Date 2020 Rank 81 57 49 44 27 27 42 64 41 27 40
Vanguard Target Retirement 2025 3.81 12.95 2.68 6.55 6.31 14.55 (15.55) 9.80 13.30 19.63 (5.15) Vanguard Target 2025 Composite Index (Net) 3.84 13.24 3.04 6.99 6.64 14.74 (15.02) 10.09 14.19 19.93 (5.00) +/- Index (0.03) (0.29) (0.36) (0.44) (0.33) (0.19) (0.53) (0.29) (0.89) (0.30) (0.15) Target-Date 2025 Rank 43 11 25 25 13 5 53 51 35 21 42
Vanguard Target Retirement 2030 4.54 14.78 3.34 7.36 6.87 16.03 (16.27) 11.38 14.10 21.07 (5.86) Vanguard Target 2030 Composite Index (Net) 4.52 15.09 3.71 7.80 7.20 16.26 (15.71) 11.66 14.98 21.34 (5.72) +/- Index 0.02 (0.31) (0.37) (0.44) (0.33) (0.23) (0.56) (0.28) (0.88) (0.27) (0.14) Target-Date 2030 Rank 57 18 31 32 22 6 47 56 36 34 33
36 City of Vallejo, California | 457(b), 401(a), and RHS Plans Plan Review As of March 31, 2024
Performance (%)
QTR 1 Yr 3 Yr 5 Yr 10 Yr 2023 2022 2021 2020 2019 2018
Vanguard Target Retirement 2035 5.24 16.37 4.02 8.17 7.43 17.14 (16.62) 12.96 14.79 22.44 (6.58) Vanguard Target 2035 Composite Index (Net) 5.14 16.61 4.36 8.59 7.75 17.43 (16.10) 13.24 15.67 22.76 (6.46) +/- Index 0.10 (0.24) (0.34) (0.42) (0.32) (0.29) (0.52) (0.28) (0.88) (0.32) (0.12) Target-Date 2035 Rank 75 53 44 47 32 25 38 79 40 47 28
Vanguard Target Retirement 2040 5.85 17.94 4.69 8.96 7.95 18.34 (16.98) 14.56 15.47 23.86 (7.32) Vanguard Target 2040 Composite Index (Net) 5.76 18.15 5.02 9.37 8.28 18.60 (16.51) 14.84 16.31 24.19 (7.22) +/- Index 0.09 (0.21) (0.33) (0.41) (0.33) (0.26) (0.47) (0.28) (0.84) (0.33) (0.10) Target-Date 2040 Rank 79 73 56 51 36 45 34 80 40 45 31
Vanguard Target Retirement 2045 6.45 19.45 5.34 9.74 8.40 19.48 (17.36) 16.16 16.30 24.94 (7.90) Vanguard Target 2045 Composite Index (Net) 6.38 19.70 5.66 10.14 8.73 19.77 (16.93) 16.45 17.02 25.37 (7.77) +/- Index 0.07 (0.25) (0.32) (0.40) (0.33) (0.29) (0.43) (0.29) (0.72) (0.43) (0.13) Target-Date 2045 Rank 83 72 49 42 31 40 31 67 35 38 38
Vanguard Target Retirement 2050 6.86 20.42 5.68 9.99 8.53 20.17 (17.46) 16.41 16.39 24.98 (7.90) Vanguard Target 2050 Composite Index (Net) 6.84 20.76 6.02 10.41 8.87 20.48 (17.07) 16.75 17.17 25.37 (7.77) +/- Index 0.02 (0.34) (0.34) (0.42) (0.34) (0.31) (0.39) (0.34) (0.78) (0.39) (0.13) Target-Date 2050 Rank 83 68 38 39 29 39 29 71 36 42 32
Vanguard Target Retirement 2055 6.88 20.43 5.69 9.98 8.51 20.16 (17.46) 16.44 16.32 24.98 (7.89) Vanguard Target 2055 Composite Index (Net) 6.84 20.76 6.02 10.41 8.87 20.48 (17.07) 16.75 17.17 25.37 (7.77) +/- Index 0.04 (0.33) (0.33) (0.43) (0.36) (0.32) (0.39) (0.31) (0.85) (0.39) (0.12) Target-Date 2055 Rank 84 68 41 44 36 44 26 76 40 45 33
Vanguard Target Retirement 2060 6.87 20.44 5.70 9.99 8.51 20.18 (17.46) 16.44 16.32 24.96 (7.87) Vanguard Target 2060 Composite Index (Net) 6.84 20.76 6.02 10.41 8.87 20.48 (17.07) 16.75 17.17 25.37 (7.77) +/- Index 0.03 (0.32) (0.32) (0.42) (0.36) (0.30) (0.39) (0.31) (0.85) (0.41) (0.10) Target-Date 2060 Rank 86 70 42 47 1 47 24 78 41 55 30
37 City of Vallejo, California | 457(b), 401(a), and RHS Plans Plan Review As of March 31, 2024
Performance (%)
QTR 1 Yr 3 Yr 5 Yr 10 Yr 2023 2022 2021 2020 2019 2018
Vanguard Target Retirement 2065 6.88 20.41 5.72 9.98 - 20.15 (17.39) 16.46 16.17 24.96 (7.95) Vanguard Target 2065 Composite Index (Net) 6.84 20.76 6.02 10.41 - 20.48 (17.07) 16.75 17.17 25.37 (7.77) +/- Index 0.04 (0.35) (0.30) (0.43) - (0.33) (0.32) (0.29) (1.00) (0.41) (0.18) Target-Date 2065+ Rank 89 72 42 63 - 53 17 68 59 61 7
38 Section 7 | Fee Review - 457(b) Deferred Compensation Plan Annualized Plan Cost
Record Keeper Fees
Administrative Fees
Weighted Investment Fees

0.000%

0.066%

0.132%

0.198%

0.264%

0.330%

0.396%
Jun-2023 Sep-2023 Dec-2023 Mar-2024

0.025% 0.025% 0.025% 0.025%

0.100% 0.100% 0.100% 0.100%

0.202% 0.196% 0.192% 0.188%
Jun-2023
(%)
Sep-2023
(%)
Dec-2023
(%)
Mar-2024
(%)
Total Plan Fees 0.327 0.321 0.317 0.313
Record Keeper Fees 0.025 0.025 0.025 0.025
Administrative Fees 0.100 0.100 0.100 0.100
Weighted Investment Fees 0.202 0.196 0.192 0.188
City of Vallejo, California | 457(b) Deferred Compensation Plan Plan Fee Analysis As of March 31, 2024
39 Annualized Plan Cost
Record Keeper Fees
Administrative Fees
Weighted Investment Fees

0.000%

0.0%

0.1%

0.2%

0.35%

0.4%
2021 2022
2021
(%)
2022
(%)
Total Plan Fees 0.5 0.331
Record Keeper Fees 0.025 0.025
Administrative Fees 0.100 0.100
Weighted Investment Fees 0.206
City of Vallejo, CDOLIRUQLD | 457 Deferred Compensation Plan Plan Fee Analysis

0.025% 0.025%

0.100% 0.100%

0.230%

0.20%
40 Asset-ID
Market Value
As of 03/31/2024
$
Net
Expense Ratio
(%)
Net
Estimated Expense
$
MissionSquare PLUS Fund R10 92208j709 12,300,308 0.310 38,131 Fidelity US Bond Index FXNAX 2,163,730 0.025 541
Sterling Capital Total Return Bond R6 STRDX 2,221,200 0.360 7,996 MFS Value R6 MEIKX 2,032,131 0.440 8,941
Fidelity 500 Index FXAIX 7,531,861 0.015 1,130
Vanguard US Growth Adm VWUAX 6,828,566 0.200 13,657
Allspring Special Mid Cap Value Fund WFPRX 727,784 0.700 5,094 Fidelity Mid Cap Index FSMDX 1,669,078 0.025 417
MFS Mid Cap Growth R6 OTCKX 1,284,194 0.660 8,476
Fidelity Small Cap Index FSSNX 1,693,306 0.025 423
Vanguard International Value Inv VTRIX 820,433 0.390 3,200 Fidelity Total International Index FTIHX 3,006,781 0.060 1,804 Vanguard International Growth Adm VWILX 814,211 0.310 2,524 Vanguard Target Retirement Income VTINX 261,593 0.080 209 Vanguard Target Retirement 2020 VTWNX 269,056 0.080 215 Vanguard Target Retirement 2025 VTTVX 1,325,503 0.080 1,060 Vanguard Target Retirement 2030 VTHRX 1,084,309 0.080 867 Vanguard Target Retirement 2035 VTTHX 2,471,113 0.080 1,977 Vanguard Target Retirement 2040 VFORX 1,060,807 0.080 849 Vanguard Target Retirement 2045 VTIVX 1,208,942 0.080 967 Vanguard Target Retirement 2050 VFIFX 1,328,046 0.080 1,062 Vanguard Target Retirement 2055 VFFVX 935,241 0.080 748 Vanguard Target Retirement 2060 VTTSX 321,998 0.080 258 Vanguard Target Retirement 2065 VLXVX 12,874 0.080 10
Total 53,373,066 0.188 100,559
City of Vallejo, California | 457(b) Deferred Compensation Plan Plan Fee Analysis As of March 31, 2024
41 City of Vallejo, California | 457(b) Deferred Compensation Plan Plan Fee Analysis As of March 31, 2024
For reporting purposes, MissionSquare PLUS fund level fees have been excluded from the fund expense ratio calculations.

Plan Administration Cost (0.125%)
Rate
(%)
Annualized Charge
$
Period Charge
$
Per Part Est Charge
$
Record Keeper Fees 0.025 13,364 3,341 26
Administrative Fees 0.100 53,455 13,364 104
42 Section 8 | Fee Review - 401(a) Defined Contribution Plan Annualized Plan Cost
Record Keeper Fees
Administrative Fees
Weighted Investment Fees

0.000%

0.050%

0.100%

0.150%

0.200%

0.250%

0.300%
Jun-2023 Sep-2023 Dec-2023 Mar-2024

0.025% 0.025% 0.025% 0.025%

0.100% 0.100% 0.100% 0.100%

0.118% 0.109% 0.108% 0.111%
Jun-2023
(%)
Sep-2023
(%)
Dec-2023
(%)
Mar-2024
(%)
Total Plan Fees 0.243 0.234 0.233 0.236
Record Keeper Fees 0.025 0.025 0.025 0.025
Administrative Fees 0.100 0.100 0.100 0.100
Weighted Investment Fees 0.118 0.109 0.108 0.111
City of Vallejo, California | 401(a) Defined Contribution Plan Plan Fee Analysis As of March 31, 2024
43 Annualized Plan Cost
Record Keeper Fees
Administrative Fees
Weighted Investment Fees

0.000%

0.050%

0.100%

0.150%

0.200%

0.250%

0.300%
2021 2022
2021
(%)
2022
(%)
Total Plan Fees 0.248
Record Keeper Fees 0.025 0.025
Administrative Fees 0.100 0.100
Weighted Investment Fees 0.123
City of Vallejo, CDOLIRUQLD | 401(a) Defined Contribution Plan Plan Fee Analysis

0.025% 0.025%

0.100% 0.100%

0.153%

0.12%
44 Asset-ID
Market Value
As of 03/31/2024
$
Net
Expense Ratio
(%)
Net
Estimated Expense
$
MissionSquare PLUS Fund R10 92208j709 42,003 0.310 130
Fidelity US Bond Index FXNAX 28,313 0.025 7
Sterling Capital Total Return Bond R6 STRDX 3,600 0.360 13 MFS Value R6 MEIKX 301 0.440 1
Fidelity 500 Index FXAIX 79,659 0.015 12
Vanguard US Growth Adm VWUAX 100,312 0.200 201
Allspring Special Mid Cap Value Fund WFPRX 243 0.700 2
Fidelity Mid Cap Index FSMDX 31,304 0.025 8
MFS Mid Cap Growth R6 OTCKX 3,324 0.660 22
Fidelity Small Cap Index FSSNX 541 0.025 -
Vanguard International Value Inv VTRIX 294 0.390 1
Fidelity Total International Index FTIHX 18,334 0.060 11 Vanguard International Growth Adm VWILX 2,147 0.310 7
Vanguard Target Retirement Income VTINX - 0.080 -
Vanguard Target Retirement 2020 VTWNX 15,428 0.080 12
Vanguard Target Retirement 2025 VTTVX 4,323 0.080 3
Vanguard Target Retirement 2030 VTHRX 128,595 0.080 103 Vanguard Target Retirement 2035 VTTHX 24,504 0.080 20
Vanguard Target Retirement 2040 VFORX 28,072 0.080 22
Vanguard Target Retirement 2045 VTIVX 15,367 0.080 12
Vanguard Target Retirement 2050 VFIFX 7,194 0.080 6
Vanguard Target Retirement 2055 VFFVX 6,608 0.080 5
Vanguard Target Retirement 2060 VTTSX - 0.080 -
Vanguard Target Retirement 2065 VLXVX - 0.080 -
Total 540,468 0.111 599
City of Vallejo, California | 401(a) Defined Contribution Plan Plan Fee Analysis As of March 31, 2024
45 City of Vallejo, California | 401(a) Defined Contribution Plan Plan Fee Analysis As of March 31, 2024
For reporting purposes, MissionSquare PLUS fund level fees have been excluded from the fund expense ratio calculations.

Plan Administration Cost (0.125%)
Rate
(%)
Annualized Charge
$
Period Charge
$
Per Part Est Charge
$
Record Keeper Fees 0.025 135 34 4
Administrative Fees 0.100 540 135 16
46 Section 9 | Fee Review - Retirement Health Savings
Annualized Plan Cost
Record Keeper Fees
Weighted Investment Fees

0.000%

0.281%

0.562%

0.843%

1.124%

1.405%

1.686%
Jun-2023 Sep-2023 Dec-2023 Mar-2024

1.241% 1.260% 1.194% 1.159%

0.087% 0.085%

0.085% 0.086%
Jun-2023
(%)
Sep-2023
(%)
Dec-2023
(%)
Mar-2024
(%)
Total Plan Fees 1.328 1.345 1.279 1.245
Record Keeper Fees 1.241 1.260 1.194 1.159
Weighted Investment Fees 0.087 0.085 0.085 0.086
City of Vallejo, California | Retirement Health Savings Plan Plan Fee Analysis As of March 31, 2024
47 Annualized Plan Cost
Record Keeper Fees
Weighted Investment Fees

0.000%

0.0%

0.00%

0.0%

1.00%

1.0%

1.00%
0%
2021 2022
2021
(%)
2022
(%)
Total Plan Fees 1.465
Record Keeper Fees 1.231 1.380
Weighted Investment Fees
0.085
City of Vallejo, CDOLIRUQLD | Retirement Health Savings Plan Plan Fee Analysis

1.231%

1.380%

0.096%

0.085%
48 Asset-ID
Market Value
As of 03/31/2024
$
Net
Expense Ratio
(%)
Net
Estimated Expense
$
MissionSquare PLUS Fund S11 92211r318 25,781 0.310 80
Fidelity US Bond Index FXNAX 20 0.025 -
Sterling Capital Total Return Bond R6 STRDX 20 0.360 -
MFS Value R6 MEIKX 245 0.440 1
Fidelity 500 Index FXAIX 87,614 0.015 13
Vanguard US Growth Adm VWUAX 113,808 0.200 228
Allspring Special Mid Cap Value Fund WFPRX 1,310 0.700 9 Fidelity Mid Cap Index FSMDX 26,133 0.025 7
MFS Mid Cap Growth R6 OTCKX 3,235 0.660 21
Fidelity Small Cap Index FSSNX 3,585 0.025 1
Vanguard International Value Inv VTRIX - 0.390 -
Fidelity Total International Index FTIHX 25,359 0.060 15 Vanguard International Growth Adm VWILX - 0.310 -
Vanguard Target Retirement Income VTINX 6,322 0.080 5
Vanguard Target Retirement 2020 VTWNX 68,890 0.080 55
Vanguard Target Retirement 2025 VTTVX 197,888 0.080 158 Vanguard Target Retirement 2030 VTHRX 196,706 0.080 157 Vanguard Target Retirement 2035 VTTHX 227,875 0.080 182 Vanguard Target Retirement 2040 VFORX 373,585 0.080 299 Vanguard Target Retirement 2045 VTIVX 404,357 0.080 323 Vanguard Target Retirement 2050 VFIFX 476,247 0.080 381 Vanguard Target Retirement 2055 VFFVX 239,931 0.080 192 Vanguard Target Retirement 2060 VTTSX 40,160 0.080 32
Vanguard Target Retirement 2065 VLXVX 4,775 0.080 4
Total 2,523,847 0.086 2,164
City of Vallejo, California | Retirement Health Savings Plan Plan Fee Analysis As of March 31, 2024
49 City of Vallejo, California | Retirement Health Savings Plan Plan Fee Analysis As of March 31, 2024
For reporting purposes, MissionSquare PLUS fund level fees have been excluded from the fund expense ratio calculations.

Plan Administration Cost (0.55% plus $25 per participant per year) Rate
(%)
Annualized Charge
$
Period Charge
$
Per Part Est Charge
$
Record Keeper Fees 1.159 29,256 7,314 48
50 &LW\RI9DOOHMR&DOLIRUQLD_
E

D
DQG5+63ODQV Plan Fee Analysis
As of March 31, 2024
Administrative Account Summary
Period Beginning Balance Contributions* Growth Distributions Ending Balance 1Q24 $59,069 $12,426 $486 ($11,204) $60,777
*Excess revenue is deposited into the administrative allowance account in the period following the calculation. This administrative allowance account is held at MissionSquare. 51 Section 10 | Fund Attributions
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59 Credit Quality
Inception Date January 2, 1991Fund Net Assets $11.1 BillionFund profile & characteristics 1 Aa3/AA-/AA
Effective Duration2 3.07
Karen Chong-Wulff, CFA, CAIA, Portfolio Managers:MissionSquare InvestmentsInvestment Adviser:Portfolio management5+ Yrs 33.9%4-5 Yrs 14.4%3-4 Yrs 10.4%2-3 Yrs 11.9%1-2 Yrs 13.4%0-1 Yrs 16.0%Maturity allocationTier 4 - Total Return Focus 65.0%Tier 3 - Laddered Maturity Focus 21.6%Tier 2 - Shorter Duration Focus 9.3%Tier 1 - Cash Buffer 4.1%StructureWrap Providers 5.15%Treasuries 12.12%Other 0.02%Municipals 0.56%Mortgage-Backed 23.51%Maturing GICs 21.60%Credits 24.91%Cash & Cash Equivalents 3.92%Asset-Backed 7.99%Agencies 0.22%Sector allocation Holdings over 4,000Fixed Income Managers 9Issuer Contracts 74Wrap Providers 7Maturing GIC Issuers 10Market/Book Value Ratio 94.85% Managing Vice President,
Oliver Meng, CFA, CAIA, FRM,
Managed Fund Since 2007
Director, Senior Fund Manager,
Wayne Wicker, CFA,
Managed Fund Since 2021
Senior Vice President and Chief Investment
Officer, Managed Fund Since 2004
trends over time, they typically will do so on a lagged basis.while the Fund‘s returns are generally expected to follow interest rateand provisions in stable value contracts held by the Fund. In addition,funds, because of its longer maturity, potential adverse market changes,not track shorter-term interest rates as closely as money market mutualshort-to-intermediate term fixed income funds. The Fund generally willfunds and short-term bank rates and relatively stable returns compared toachieve, over the long run, returns higher than those of money marketfactors. The Fund invests in stable value investment contracts to seek tomarket conditions, relative value analysis, liquidity needs, and othermultiple tiers, is determined based on prevailing economic and capitalvalue investments and fixed income investment sectors, across the fund’scomposition of the Fund‘s portfolio and its allocations to various stableterms and maturities and is diversified across sectors and issuers. Themay include different types of investments with a variety of negotiatedmutual funds, as well as cash and cash equivalents. The Fund’s portfoliovalue investment contracts. In addition, the Fund invests in money marketcommingled trust funds (“fixed income assets”) that back certain stablefixed income securities, fixed income mutual funds, and fixed incomediversified and tiered portfolio of stable value investment contracts and inmanager approach in managing the Fund. The Fund invests primarily in aMissionSquare Investments employs a structured, multi-product, multiInvestment strategythose who invest in the PLUS Fund.principal and delivering stable returns, and to meet liquidity needs ofKey goals are to seek to preserve capital, by limiting risk of loss ofFund goalsmeeting liquidity needs.level of income consistent with providing capital preservation andThe PLUS Fund‘s investment objective is to seek to offer a competitiveInvestment objective Traditional GIC (19.8%)Issuers
Prudential 0.2%Jackson National Life 0.3%Protective Life 0.5%New York Life 1.0%United of Omaha 1.2%Metropolitan Life 3.3%Minnesota Life 4.3%Principal Life 4.5%Metropolitan Tower Life 4.6% Synthetic GIC (55.1%)
Principal Life 6.2%Metropolitan Tower Life 8.0%Prudential 13.2%Pacific Life 13.9%Transamerica Life 13.9% Separate Account GIC (21.0%)
Lincoln National Life 1.8%New York Life 9.5%Massachusetts Mutual Life 9.7% Performance as of 12/31/2023
Performance Crediting
Rate 3
Total
expenses
estimated
Share Class/CUSIP YTD 1 Year 3 Year 5 Year 10 Year
PercentileMorningstar US CIT Stable Value PeerPLUS Fund (Gross) / – 3.22% 3.10% 3.10% 2.53% 2.58% 2.49% 0.21% 4 — — 14% 7% 7% 1% —
of FundsMorningstar US CIT Stable Value Number
4 — — 15 15 15 14 —
R105/ 92208J709 2.90% 2.78% 2.78% 2.22% 2.26% 2.18% 0.52% R95/ 92208J600 2.85% 2.73% 2.73% 2.16% 2.21% 2.13% 0.57% R85/ 92208J501 2.79% 2.68% 2.68% 2.11% 2.16% 2.08% 0.62%R75/ 92208J402 2.74% 2.63% 2.63% 2.06% 2.11% 2.03% 0.67%Morningstar US CIT Stable Value IndexICE BofA US 3 Month Treasury Bill Index — 5.01% 5.01% 2.15% 1.88% 1.25% —R1/ 92208J105 2.07% 1.96% 1.96% 1.40% 1.45% 1.37% 1.32%R3/ 92208J204 2.34% 2.23% 2.23% 1.67% 1.71% 1.63% 1.06%R5/ 92208J303 2.64% 2.52% 2.52% 1.96% 2.01% 1.92% 0.77% 6,7 — 2.10% 2.68% 2.08% 2.22% 2.03% —
Standard Deviation (Gross) — — 0.07 0.13 0.10 0.08 —
PLUS Fund Gross total fee is 0.21% of assets. The fees included in the gross return consist of: (i) third-party manager fees of 0.08% of assets; (ii) third-party wrap provider fees of 0.11% of assets;(iii) third-party custody fees of 0.01% of assets; and (iv) third-party acquired fund fees of 0.01% of assets. The gross return is reported in a manner consistent with stable value industry reportingpractices. Fees are subject to change due to fixed income manager, wrap, allocation, or other changes. Periods greater than one year represent annualized performance and past performance, asshown, is no guarantee of future results. Current performance may be lower or higher than the performance shown. For current performance, contact MissionSquare Retirement by calling 800-669-7400 or by visiting www.missionsq.org if you are a plan administration client, or www.investments.missionsq.org for institutions.* The PLUS Fund includes additional share classes that are made available to clients based on asset size. For additional information, please contact the MissionSquare Investment Only team by When Funds are marketed to institutional clients, the Funds are offered by MissionSquare Investment Services, an SEC registered calling us at 833-747-5601 or emailing us at [email protected]. broker-dealer and FINRA member firm. MissionSquare
Investment Services is a wholly-owned subsidiary of MissionSquare Retirement and is an affiliate of VantageTrust Company, LLC and MissionSquare Investments.

Fact sheet
MissionSquare PLUS Fund
Institutional only December 2023
60 The Fund is an investment option of VantageTrust, a group trust established and maintained by VantageTrust Company, LLC, a whol Fund information
ly owned subsidiary of MissionSquare Retirement. VantageTrust provides for the commingling of assets of certain trusts and plans as described in its Declaration of Trust, and is only available for investment by such eligible trusts and plans. The Fund is not amutual fund. Its units are not deposits of VantageTrust Company and are not insured by the Federal Deposit Insurance Corporation or any other agency. The Fund is a security that has not beenregistered under the Securities Act of 1933 and is exempt from investment company registration under the Investment Company Act of 1940. For additional information regarding the Fund,including a description of the principal risks, please consult the Funds Disclosure Memorandum, which is available when plan administration clients log in at www.missionsq.org, atBefore investing in the Fund, you should carefully consider your investment goals, tolerance for risk, investment time horizon,www.investments.missionsq.org for institutions, or upon request by calling 800-669-7400. and personal circumstances. There is no guarantee that the Fund Stable Value Risk, Interest Rate Risk, Credit Risk, Stable Value Issuer Risk, Liquidity Risk, Reinvestment Risk, Call Risk, MorInvestment riskswill meet its investment objective and you can lose money. tgage-Backed Securities Risk, Asset-Backed Securities Risk, Securities In the event an Employer initiates withdrawal of all or part of its Plan’s assets from the PLUS Fund, the payout of such assetsRestrictions related to employer withdrawalsLending Risk, Derivative Instruments Risk, Large Investor Risk. See the Fund’s Disclosure Memorandum for risk descriptions. may be deferred for a period of up to twelve months. In the case of a total withdrawal, participant transfers of PLUS Fund assets to other investment options will be restricted and participants will not be able to make additional investments in the PLUS Fund duringDirect transfers from the PLUS Fund to competing funds are restricted. Competing funds include, but are not limited to, the folTransfer restrictionsthis twelve-month period. lowing types of investment options: (1) cash management funds, money market mutual funds, bank collective short-term investment funds, bank accounts or certificates of deposit, stable value funds or substantially similar investment options that offerguarantees of principal or income, such as guaranteed annuity contracts or similar arrangements with financial institutions; (2) short-term bond funds that invest in fixed income securities andseek to maintain or have an average portfolio duration of less than two years; and (3) any investment option that invests 80% or more of its assets in (i) fixed income securities or funds with aduration of less than two years, or (ii) instruments that seek to provide capital preservation such as stable value funds, bank certificates of deposit or bank accounts, and cash or cash equivalents.To transfer money from the PLUS Fund to a competing fund, you must first transfer the amount to a non-competing fund for a period of at least 90 days. For example, if you want to transfer moneyfrom the PLUS Fund to a money market fund, you will first need to transfer the money to a non-competing fund and then, 90 days later or any time thereafter, transfer that amount of money [email protected] WhitingInvestment Only Investment Consultant RelationsContact informationthe money market fund.

[email protected] McAtamney

1. Credit Quality is calculated by MissionSquare Investments (MSQI) and is only one factor that may be considered in assessing the risks of a fixed income portfolio, and it does not provide a complete picture of the credit risks or the dispersion of those risks within a portfolio. MSQI calculates the average based on the Moody‘s, S&P, Fitch (M/S&P/F) or a combination of the threecredit ratings of the underlying securities or wrap providers. Moody’s, S&P, and Fitch are Nationally Recognized Statistical Rating Organizations and are not affiliated with MSQI.

2. Effective duration measures the interest rate sensitivity of the underlying portfolio. For the portion of the Fund invested in Maturing GICs, effective duration is not applicable and a duration of zero is assigned since their current values are not impacted by interest rate changes. If a duration based on weighted average maturity or cash flows is assigned to the Maturing GICs, theFund‘s overall December 31, 2023 duration would be 3.61.

4. Data derived by MissionSquare Investment Advisers, LLC based on information from Morningstar. Percentage ranks and comparison3. Annualized crediting rate for the last day of the month. s are based on the Morningstar US CIT Stable Value universe representing the majority of the U.S. collective investment trust stable-value fund pooled universe. and gross returns that do not include plan administration fees, advisor expenses, or otherstable value fund costs. Actual performance experienced by participants would be commensurately lower. Past performance is no guarantee of future results. MissionSquare Investments doesnot independently verify Morningstar data. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a universewill always receive a rank of 1.

5. Performance information for this class prior to its inception date is the performance of the Fund adjusted to reflect the estimated fees and expenses of this class.6. The Morningstar US CIT Stable Value Index measures the performance of approximately 75% of the U.S. collective investment trust stable-value fund pooled universe and is the stable value industry benchmark used by many institutional investors, consultants, advisers, and plan sponsors for monitoring stable value pooled funds.

7. Certain information including, but not limited to, benchmark performance or other performance and/or fee information, is provided by Morningstar, Inc., © 2023 All rights reserved. This information: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstarnor its content providers are responsible for any damages or losses arising from any use of information. Morningstar is a registered trademark of Morningstar, Inc.

When Funds are marketed to institutional clients, the Funds are offered by MissionSquare Investment Services, an SEC registered broker-dealer and FINRA member firm. MissionSquareInvestment Services is a wholly-owned subsidiary of MissionSquare Retirement and is an affiliate of VantageTrust Company, LLC and MissionSquare Investments.Fact sheet | MissionSquare PLUS Fund FACT SHEET December 2023 Institutional onlyMissionSquare Investments 777 N. Capitol Street, NE, Washington, DC 20002-4240investments.missionsq.org FS7071-0000-1223 61 5HWXUQ%RQG5
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89 Important Disclosures:

The material in this Report is intended solely for the use of the persons to whom it has been delivered. This information is being provided as a part of the services you receive from your Hyas Group Consultant and does not supersede or replace your customer account statement provided by your custodian (“Custodial Statement”). Information in this Report may vary from the information in your Custodial Statement as a result of differences in accounting procedures, reporting dates, or valuation methodologies of certain securities. The market values reflected in this Report may vary slightly from the market values in your Custodial Statement. The information in this Report is as of the date(s) noted and subject to daily market fluctuation.

Sources of Information. Material in this Report has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy, completeness, or timeliness. The performance produced herein is calculated utilizing custodian data downloads and manually entered material. Although we take every precaution to ensure accuracy, we are not able to guarantee complete accuracy.

No Tax or Legal Advice. When Hyas Group, its affiliates and Hyas Group Consultants provide “investment advice” regarding a retirement or welfare benefit plan account, an individual retirement account or a Coverdell education savings account (“Retirement Account”), Hyas Group is a “fiduciary” as those terms are defined under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and/or the Internal Revenue Code of 1986 (the “Code”), as applicable. When Hyas Group provides investment education or otherwise does not provide “investment advice”, Hyas Group will not be considered a “fiduciary” under ERISA and/or the Code. Tax laws are complex and subject to change. Hyas Group does not provide tax or legal advice.

Key Asset Class Risk Disclosures. Investing involves market risk, including possible loss of principal. Please refer to Hyas Group’s Form ADV Brochure for more information about the risks associated with certain investment products. The Hyas Group’s Form ADV Brochure is available upon request.

ALL MUTUAL FUND PRODUCTS AND EXCHANGE-TRADED FUNDS ARE SOLD BY PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION ABOUT A FUND, ITS EXPENSES AND MATERIAL RISKS RELATED TO THAT FUND’S INVESTMENT STRATEGY.

PLEASE CONTACT YOUR HYAS GROUP CONSULTANT FOR A COPY OF A FUND’S PROSPECTUS.

PLEASE READ THE PROSPECTUS AND CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER IMPORTANT INFORMATION ABOUT THE FUND.

Performance. Performance results illustrated herein do not reflect a deduction of any investment advisory fees charged by Hyas Group or any investment manager but do include the fund’s internal expenses. Performance results are annualized for time periods greater than one year and include all cash and cash equivalents, realized and unrealized capital gains and losses, and dividends, interest, and income. The investment results depicted herein represent historical performance. As a result of recent market activity, current performance may vary from the figures shown. Past performance is not a guarantee of future results.

The underlying fund’s internal expenses (also known as the expense ratio) generally covers investment management fees, marketing, and distribution fees (also known as 12b-1 fees) and other operating expenses of the fund. The expense ratios being displayed for mutual funds reflect each fund's prospectus "net" expenses as provided by Morningstar. Such "net" expenses are subject to change and may increase at any time.

To learn more about the Hyas Group advisory services, please see the Hyas Group ADV Brochure for more information. It is available from your Hyas Group Consultant.

Performance data quoted is historical. Past performance does not guarantee future results. Current performance may be higher or lower than the performance quoted. You can obtain performance data current to the most recent month-end for each fund by visiting the fund company website. The investment return and principal value of an investment will fluctuate such that an investor's shares, when redeemed, may be worth more or less than their original cost. Total 90 returns include reinvestment of dividends and capital gains and are net of all fund fees and expenses.

Performance figures are based on Net Asset Value (NAV) within a qualified retirement plan. If an individual were to purchase shares outside of a qualified plan, they would likely be subject to all, or a portion of, any applicable sales charges. These charges would lower the performance indicated above.

Each fund's performance may, from time to time, have been affected significantly by material market and economic conditions, including interest rates, market trends, and general business and economic cycles, which may or may not be repeated in the future. Also, keep in mind that any double-digit returns are highly unusual and cannot be sustained. Such returns are primarily achieved during favorable market conditions.

Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. Index returns include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment. The indices selected by Hyas Group to measure performance are representative of broad asset classes. Hyas Group retains the right to change representative indices at any time. Performance of indices may be more or less volatile than any investment product. The risk of loss in value of a specific investment is not the same as the risk of loss in a broad market index. Therefore, the historical returns of an index will not be the same as the historical returns of a particular investment a client selects. Past performance does not guarantee future results.

The "Investment Policy Statement Compliance Report" indicates funds that are on the Plan's Watch List, as based on investment monitoring criteria which is provided to Hyas Group by the plan sponsor. The plan sponsor should inform its Hyas Group Consultant of any changes to the plan's investment policy.

Fund data provided by Morningstar.

Peer Groups. Peer Groups are a collection of similar investment strategies that essentially group investment products that share the same investment approach.

Peer Groups are used for comparison purposes to compare and illustrate a clients investment portfolio versus its peer across various quantitative metrics like performance and risk. Peer Group comparison is conceptually another form of benchmark comparison whereby the actual investment can be ranked versus its peer across various quantitative metrics. All Peer Group data are provided by Investment Metrics, LLC. The URL below provides all the definitions and methodology about the various Peer Groups https://www.invmetrics.com/style-peer-groups Peer Group Ranking Methodology. A percentile rank denotes the value of a product in which a certain percent of observations falls within a peer group. The range of percentile rankings is between 1 and 100, where 1 represents a high statistical value and 100 represents a low statistical value. The 30th percentile, for example, is the value in which 30% of the highest observations may be found, the 65th percentile is the value in which 65% of the highest observations may be found, and so on.

Percentile rankings are calculated based on a normalized distribution ranging from 1 to 100 for all products in each peer group, where a ranking of 1 denotes a high statistical value and a ranking of 100 denotes a low statistical value. It is important to note that the same ranking methodology applies to all statistics, implying that a ranking of 1 will always mean highest value across all statistics.

For example, consider a risk/return assessment using standard deviation as a measure of risk. A percentile ranking equal to 1 for return denotes highest return, whereas a percentile ranking of 1 for standard deviation denotes highest risk among peers.

In addition, values may be used to demonstrate quartile rankings. For example, the third quartile is also known as the 75th percentile, and the median is the 50th percentile.

Hyas Group is a separate business unit within Morgan Stanley Institutional Advisors LLC. 91 457 DEFERRED COMPENSATION
PLAN, 401(a) DEFINED

CONTRIBUTION PLAN, AND

RETIREMENT HEALTH SAVINGS

PROGRAM

STATEMENT OF INVESTMENT POLICIES

AND GUIDELINES

CITY OF VALLEJO, CA
Revised April 20232024
City of Vallejo 457, 401(a), and RHS Statement of Investment Policies and Guidelines 1

INTRODUCTION AND PURPOSE
This statement is set forth to provide a clear understanding of the investment policies, guidelines and objectives related to the administration of the City of Vallejo 457 Deferred Compensation, 401(a) Defined Contribution, and Retirement Health Savings Program (hereinafter “Plans”). The Plans are salary deferral retirement plans available to eligible employees who are interested in saving for retirement and health care expenses on a tax-favored basis. The Plans’ purpose is to provide a vehicle for and to encourage additional savings to supplement the retirement benefits provided to City employees.

This Investment Policy Statement is further intended to assist the fiduciaries of the Plans in making investment-related decisions in a prudent manner. It outlines the underlying philosophies and processes for the selection, monitoring and evaluation of the investment options and investment providers utilized by the Plans. This Investment Policy Statement will be reviewed at least annually and it can be revised at any time to reflect changes in the capital markets, plan participant objectives, or other factors relevant to the Plans.

SUMMARY OF RESPONSIBILITIES
Plans’ Sponsor – The City of Vallejo is the Plans’ Sponsor, whose responsibilities include but are not limited to:
 Adopting and amending the Plan Documents;
 Approving Plan services contracts;
 Appointing the Committee members; and
 Designating other fiduciaries of the Plans.

Committee – The City of Vallejo 457 Deferred Compensation Plan, 401(a) Defined Contribution Plan, and Retirement Health Savings Program Committee (hereinafter “Committee”) serves as Administrator and has responsibility for the operation and administration of the Plans in accordance with the terms of the Plan Documents. It is the intent of the Committee to fulfill its fiduciary responsibilities with respect to the Plans solely in the interest of the participants and beneficiaries. The Committee members, as fiduciaries, are to perform their duties with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims.

The Committee’s responsibilities also include but are not limited to the following:
 Selecting the investment design features of the Plans, including establishing the investment policy and objectives and the number and types of investment alternatives available to Plan participants;  Appointing, monitoring and evaluating all investment providers and managers in accordance with guidelines and benchmarks established within this document and consistent with applicable laws;  Selecting and monitoring other Plan service providers, including, but not limited to, the Plans’ record-keeper, trustee, investment consultants, accountants, and/or any other providers; and  Monitoring Plan costs which are charged to Plan assets and/or paid by Plan participants, including but not limited to investment management fees, custodial fees and fees paid to other service providers from Plan and/or participant assets (net of fees basis in evaluating the performance of investment managers);
 Establishing performance objectives and monitoring guidelines.

Investment Consultant - The Committee may engage an independent investment consultant (hereinafter “Consultant”) to assist in carrying out the duties and responsibilities of this Investment Policy Statement.

Such Consultant must be registered with either State or Federal securities regulators pursuant to the Investment Advisors Act of 1940. The Consultant’s role is to provide information and advice to the Committee on various investment related issues. The Consultant has no discretionary control or authority City of Vallejo 457, 401(a), and RHS Statement of Investment Policies and Guidelines 2 over Plan assets. In its role as an advisor to the Committee the Consultant acknowledges a fiduciary role with respect to the investment advice provided to the Committee. The services of the Consultant will be set forth in a separate agreement.

Investment Provider – An entity that offers investment option products and manages assets for the Plans.

Examples of investment option products offered by an investment provider may include mutual funds, commingled trust funds, separate accounts and/or variable annuity contracts.

Investment Manager – The person(s) at the Investment Provider responsible for implementing an investment option’s investing strategy and managing its portfolio trading activities.

Services Provider – An entity engaged to assist the Plans’ Sponsor and the Committee in regard to the administration of the Plans. Service providers may include but are not limited to: the Plans’ record-keepers, trustees, investment consultants, accountants, and/or any other providers. This assistance may include Plan enrollment, communication, education, including providing general investment information to Plan participants regarding the procedures for making investment choices under the Plans and general investment information regarding each of the investment options offered under the Plans, distribution processing, record keeping and other administrative functions as prescribed in an agreement entered into between the Plans’ Sponsor and the Services Providers.

GENERAL COMPLIANCE
The Plans are designed to meet the applicable requirements of the Internal Revenue Code of 1986 (the Code), as amended. The Plans’ investment policies and guidelines shall be reviewed on a regular basis for modifications, as needed, but may be modified at any time as deemed necessary by the Committee.

At minimum, it is intended that plan participants shall be provided with the following opportunities:

A. Choose from a minimum of three diverse investment categories, each with materially different risk and return characteristics. At least one of the categories will provide for a high degree of safety and capital preservation.

B. Make and/or modify investment decisions at least quarterly.

C. Receive or have access to the following information, as updated:
 A description of the investment alternatives available under the Plans including a general description of the investment objectives, risk and return characteristics, and type and diversification of assets comprising each alternative;
 Identification of the designated Investment Providers, Managers and investment products;  A description of any transaction fees or expenses charged to the Plan participant's account, and information on costs and fees for an investment product that reduces the rate of return to Plan participants (expense ratios; and
 Prospectuses, annual reports, and semi-annual reports on investment products, if available.

GENERAL INVESTMENT POLICY, OBJECTIVES AND STANDARDS
It is the policy of the Plans to foster an investment environment that encourages and facilitates participant efforts to supplement other sources of retirement income. The Plans will be structured in an attempt to provide Plan participants with an array of diversified investment options that offer competitive rates of return and reasonable overall cost. Participants in the Plans are solely responsible for their own investment decisions and bear the risks and assume responsibility for the results of the investment options that they select. The Plans’ Sponsor and Committee make no representations, promises, or warranties regarding the suitability of Plan participation for any participant’s individual investment or retirement needs. Additionally, the Plans’ Sponsor and Committee make no representations, promises or warranties about the performance City of Vallejo 457, 401(a), and RHS Statement of Investment Policies and Guidelines 3 of the Plans or the Plans’ investments.

The Plans exist in a dynamic marketplace in which new investment alternatives may become available over time. At present, the market offers a broad array of investment products. Investment products available to the Plans are limited to those permissible under state law. These products may include:
 Fixed annuity options
 Variable annuity options
 Co-mingled trust funds
 Mutual funds
 Shares of any company, association or corporation
The primary investment objective of the Plans is to present participants with a range of investment options, which give participants an opportunity to increase the value of their investment assets in a manner consistent with varying levels of participant risk/reward tolerances and investment decision making skills. While the Plans cannot meet all plan participant investment preferences and attitudes, the Plans attempt to provide investment vehicles for participants at various levels of investment sophistication and with varying requirements for risk and return.

Information that may be used to select which investment products to offer includes, but is not limited to, the following:
 Age, income and other demographic data on Plan participants  Liquidity and administrative constraints imposed on the Plans by service providers  Development of new investment products in the marketplace  Level of participant usage of investment products
To enable participants to establish different investment strategies, the Plans will offer investment categories that have varying return and volatility characteristics. It is the responsibility of each participant to evaluate the investment options and to select an appropriate mix.

A risk/reward structure is basic to investments. Generally, those vehicles offering the greatest return over time also carry the highest risk or volatility of return. The inherent conflict between volatility and long-range asset accumulation can be lessened through diversification among asset classes. To provide participants the opportunity to select risk/reward strategies and to diversify the Plans’ assets, the Plans will offer a number of investment alternatives.

In addition to providing a range of investment options, the Plans seek to provide investment options that are competitive in terms of performance relative to appropriate investment performance and risk benchmarks.

The performance and risk relationships of the Plans’ investment options will be reviewed periodically.

Investment options should generally be given a full market cycle to achieve stated objectives (market cycles normally occur over 3-5 year time periods). Investment options are expected to meet or exceed their predetermined benchmark index(es) net of fees. Where peer groups are definable, investment options are also expected to perform within the upper half of a sample of same style peers net of fees. In addition to net investment performance, the options’ risk characteristics will also be reviewed. The risk associated with an investment option generally should be similar to that of the same-style peer group.

City of Vallejo 457, 401(a), and RHS Statement of Investment Policies and Guidelines 4

INVESTMENT OPTIONS
Investment options offered by the Plans will be categorized or grouped by similarities in investment objectives, style and risk. The Plan Service Provider(s) and/or Consultant may be asked to assist in determining the categories of investment options. The Plan will be structured to assist participants in meeting their long-term investment objectives by providing investment options within the following permitted investment categories (these categories are further explained in the following pages of this document):

Tier 1: Target Retirement Date Pre-Mixed Portfolios
Tier 2: Asset Class Investment Options
 Fixed/Stable Value
 Total Return Bond
 U.S. Large-Size Company Equity
 U.S. Mid-Size Company Equity
 U.S. Small-Size Company Equity
 International Equity
Investment options and categories may be added or deleted as deemed necessary. At least one investment option shall be available within each investment category.

The following table outlines the objectives and performance benchmarks for each of the Plans’ investment options. The risk associated with an investment option will be compared to appropriate risk benchmarks or measures for a same-style group of peer investment options, where definable.

City of Vallejo 457, 401(a), and RHS Statement of Investment Policies and Guidelines 5 TIER 1: TARGET RETIREMENT DATE PRE-MIXED PORTFOLIOS
Lifecycle Premixed Portfolio - Retirement Income
Provide different levels of income and capital growth dependent upon an individual participant’s specific risk tolerance and income needs. The portfolio will be well diversified including U.S. and international fixed income securities as well as U.S. and international equities. Stocks generally will comprise no more than 30% of the total portfolio. The percentage of international equities generally will not exceed 40% of the equity portion of the portfolio.

Benchmark Index: Custom Blended Index
Peer Group: US Retirement Income
Lifecycle Premixed Portfolio –2020, 2025
Provide different levels of income and capital growth dependent upon an individual participant’s specific target retirement or withdrawal date. Portfolios provide different allocations to stocks and bonds dependent upon the target retirement or withdrawal date that is selected. The portfolio will be well diversified including U.S. and international fixed income securities and U.S. and international equities. Stocks generally will comprise 30%-60% of the total portfolio. The percentage of international equities generally will not exceed 40% of the equity portion of the portfolio.

Benchmark Index: Custom Blended Index
Peer Groups: US Target Date 2020, US Target Date 2025
Lifecycle Premixed Portfolio – 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065 Provide different levels of income and capital growth dependent upon an individual participant’s specific target retirement or withdrawal date. Portfolios provide different allocations to stocks and bonds dependent upon the target retirement or withdrawal date that is selected. The portfolio will be well diversified including U.S. and international fixed income securities, and U.S. and international equities. Stocks generally will comprise 60%-90% of the total portfolio. The percentage of international equities generally will not exceed 40% of the equity portion of the portfolio.

Benchmark Index: Custom Blended Index
Peer Groups:

US Target Date 2030, US Target Date 2035, US Target Date 2040, US Target Date 2045, US Target Date 2050, US Target Date 2055, US Target Date 2060, US Target Date 2065+
City of Vallejo 457, 401(a), and RHS Statement of Investment Policies and Guidelines 6 TIER 2: ASSET CATEGORY INVESTMENT OPTIONS
Fixed / Stable Value
Provide high current income relative to cash investments and a high degree of investment safety without fluctuation of principal. Investment returns are derived primarily from interest income. A Fixed or General Account option, which is a fixed rate contract that is backed by an insurance company’s balance sheet, is to be of mid-investment-grade rating or higher, and backed by a diversified pool of underlying investments. A stable value option will be invested in guaranteed investment contracts (GICs), “synthetic” portfolios, money market instruments, and others, each mainly comprised of investments of short- to intermediate maturity, and which provide for an adequate degree of liquidity. The weighted-average maturity is expected to remain between two and five years at most times. The overall weighted credit-quality rating of the option shall be the equivalent of mid-investment-grade rating or higher. The rating must be obtained from at least one credit rating agency such as Moody, S&P or Duff & Phelps. If the option’s weighted rating declines below this level, the option will be evaluated for corrective action.

Benchmark Index: 1. 5 Year CMT Index

2. 90-Day Treasury Bills Index
Peer Group: Stable Value
Total Return Bond
Provide capital appreciation and income through a diversified fixed income portfolio. The portfolio’s duration is expected to be comparable to that of its Benchmark Index, with some bandwidth allowed for the manager to exercise strategic deviation from the Benchmark. Average credit quality is expected to be investment grade. The fixed income portfolio will normally be primarily comprised of investments including money market instruments, U.S. Government and Agency bonds, mortgage-backed securities, corporate bonds, and others. The manager will be given discretion to hold securities that are not contained within the Benchmark Index, which may include Foreign Bonds, High Yield Bonds, Convertibles, Treasury Inflation Protected Securities, derivatives, and others. The portfolio’s aggregated composition and risk and return characteristics however are expected to be reflective of its asset class.

Benchmark Index: Barclays Capital US Aggregate Bond Index Peer Group: US Intermediate-Term Core Bond
U.S. Large Company Equity
Provide long-term capital appreciation through a diversified common stock portfolio whose average market capitalization may be categorized as Large Cap by an industry standard data provider. Stocks of foreign companies that are traded in the U.S. may also be included in the portfolio, but generally should not exceed more than 20% of the total portfolio.

Benchmark Indexes:

Blend: S&P 500 Index
Growth: Russell 1000 Growth
Value: Russell 1000 Value Index
Peer Groups:

Blend: US Large Cap Blend
Growth: US Large Cap Growth
Value: US Large Cap Value
City of Vallejo 457, 401(a), and RHS Statement of Investment Policies and Guidelines 7 TIER 2: ASSET CATEGORY INVESTMENT OPTIONS (continued)
U.S. Mid-Size Company Equity
Provide long-term capital appreciation through a diversified common stock portfolio whose average market capitalization may be categorized as Mid Cap by an industry standard data provider. Stocks of foreign companies that are traded in the U.S. may also be included in the portfolio, but generally should not exceed more than 20% of the total portfolio.

Benchmark Indexes:

Blend: Russell Mid-Cap Index
Growth: Russell Mid-Cap Growth Index
Value: Russell Mid-Cap Value Index
Peer Groups:

Blend: US Mid-Cap Blend
Growth: US Mid-Cap Growth
Value: US Mid-Cap Value
U.S. Small Company Equity
Provide long-term capital appreciation through a diversified common stock portfolio whose average market capitalization may be categorized as Small Cap by an industry standard data provider. Stocks of foreign companies that are traded in the U.S. may also be included, but generally should not exceed more than 20% of the total portfolio.

Benchmark Indexes: Blend: Russell 2000 Index
Peer Groups: Blend: US Small Cap Blend
International Equity
Provide long-term capital appreciation through a diversified portfolio of international equities. Stocks of emerging countries may be used at the discretion of the manager, but generally should not exceed more than 30% of the total portfolio.

Benchmark Indexes:

Blend: MSCI All Country World Index ex-U.S. IMI (net)
Growth: MSCI All Country World Index ex-U.S. Growth (net) Value: MSCI All Country World Index ex-U.S. Value (net) Peer Groups:

Blend: US Foreign Blend
Growth: US Foreign Growth
Value: US Foreign Value

INVESTMENT OPTION SELECTION GUIDELINES
Investment options offered to participants will be provided through investment provider(s) accessible on the Services Provider’s platform. Before introducing a new investment option, the Committee, in consultation with the Consultant and Services Provider will define the niche to be filled and assess any prospective investment option’s performance, quality, and risk characteristics. At a minimum, investment options under consideration should satisfy performance and risk considerations under actual, not modeled, conditions and over an appropriate time period. Investment option selection considerations may include, but are not limited to the following:
 The investment option should generally, but not necessarily, have a history that spans a full market cycle, normally three to five (3-5) years.
 The investment option should generally meet or exceed its predetermined benchmark index, net of fees.  The investment option should generally perform at median or within the upper half of a recognized and defined sample of same-style peer options.

City of Vallejo 457, 401(a), and RHS Statement of Investment Policies and Guidelines 8  The investment option should be able to demonstrate a consistent performance track record attributable to a specific investment manager or team of managers.
 In selecting Target Retirement Date funds, the Committee shall consider the current and prospective composition of the Target Date funds (based on their glide path), and the corresponding risk and return implications relative to the benchmark and peer group constituents.

INVESTMENT OPTION REVIEW GUIDELINES AND MONITORING
Investment providers and investment managers are required to comply with all applicable laws, rules, and regulations. However, the Committee takes no responsibility for the failure of such option and/or investment manager to comply with any and all applicable laws, rules or regulations.

With the possible exception of the Fixed Option, all options must have readily ascertainable market values and be easily marketable. It is recognized that certain stable value and Fixed options often have liquidity restrictions. Investment options with sales loads, redemption fees, or other non-investment management related expenses will be avoided to the extent possible. Options with deferred sales charges and/or market value adjustments will not be permitted.

Each investment option portfolio shall be diversified adequately to reduce risk and comply with current regulations and applicable state laws.

Investment option performance, risk and style consistency is intended to be evaluated on a quarterly basis.

Performance and risk results will be evaluated using comparisons with this policy, pertinent market indices and against other same-style peers, where definable. When necessary, investment option performance and risk may be reviewed more frequently.

The Committee will periodically review the investment options’ progress in meeting the Plans’ investment objectives. Investment options will be expected to comply with all stated investment objectives, guidelines and applicable rules contained in the prospectus or fund fact sheet. The Committee will review the performance of investment options quarterly to determine if they are achieving the established objectives.

Investment performance reviews may include, but are not limited to, a review of:
 Investment portfolios;
 Fees and expenses;
 Investment style, process and philosophy;
 Investment management personnel; and
 Index tracking error.

The performance review will also include measuring the options’ investment performance relative to stated benchmarks or respective indexes and peer groups; as well as the monitoring risk measures. The following will be evaluated:

Quantitative Measures
Active Investment Strategies. Options employing active management are expected to outperform their stated asset class or style benchmark net of all management fees over a trailing five year time period; and to rank above the 50th percentile of the appropriate peer group for the same trailing five year time period. It is also expected that the risk of each option, as defined by standard deviation of returns, be commensurate with the prescribed strategy relative to the appropriate market index and/or peer group.

Passive Investment Strategies. Passive Options are expected to track the performance of the index strategy that the option is designed to replicate, less management fees, with marginal tracking error. It is also expected that the risk of each passive option, as defined by standard deviation of returns, be commensurate City of Vallejo 457, 401(a), and RHS Statement of Investment Policies and Guidelines 9 with the appropriate market index.

Qualitative Measures
The options will also be monitored on an ongoing basis for other material changes which the Committee may determine are of importance to the decision of whether or not to retain an investment option, such as personnel departures; organizational changes; or alterations in investment style, philosophy, or strategy; and adherence to stated guidelines.

Time Periods. The Committee acknowledges that fluctuating rates of return characterize the securities markets, particularly during short-term time-periods. Recognizing that short-term fluctuations may cause variations in an option’s performance, the Committee intends to employ investment options with long-term investment strategies and will evaluate option performance from a long-term perspective. Performance over market cycles of three to five years will be weighted more heavily than performance over shorter time periods, such as one year or less.

In addition to the qualitative and quantitative measures referenced above, the Committee will also review the investment options’ risk characteristics in relation to that performance. Risk will be measured in various ways including, but not limited to:
 Standard deviation
 Downside risk or semi-variance
 Risk/return ratios such as Sharp or Treynor Ratios
 Other statistical measures such as Beta, Alpha and Variance

INVESTMENT OPTION TERMINATION AND WATCH GUIDELINES
Generally, all investment options are expected to remain true to their stated investment objectives and to perform as well as or better than their prescribed performance benchmarks, net of fees. The Committee recognizes the long-term nature of retirement plan investing and the variability of market returns. Periodic underperformance in any of the criteria outlined in this Investment Policy will not necessitate the termination of an option; however, any underperformance will result in consideration by the Committee of the factors causing underperformance and possible courses of action that the Committee may take.

The Committee may, at any time, place any investment option that it views as having a pattern of underperformance on a watch-status. Reasons the Committee might place an option on a watch status, include but are not limited to, the following:

Quantitative Measures
Actively Managed Options
 Performance below the prescribed benchmark index over a trailing five year period, combined with
 Performance below the median of its peer group over a trailing five year period Passively Managed Options
 Net of fee performance tracking error relative to the respective index that is greater than 15 basis points over a trailing five-year period
Target Date Options Composed of Passively Managed Options  Net of fee performance tracking error relative to the respective index that is greater than 15 basis points (0.15%) for the trailing five-year period, combined with  Performance below the median of its peer group over a trailing five-year period.

City of Vallejo 457, 401(a), and RHS Statement of Investment Policies and Guidelines 10 Target Date funds will be evaluated based on the performance of the entire suite as held within the Plan. A Target Date suite will normally be viewed as being in violation of investment policy performance criteria if over one-half of the funds in a Target Date suite held within the Plan lag this Investment Policy Statement’s prescribed performance measures. The Committee may elect to deviate from this approach if it appears reasonable to do so.

Certain passive investment options operate in a marketplace that includes foreign markets whose exchanges close prior to that of the United States. In these instances, some fund managers may engage in a method of “Fair Value Pricing,” whereby the managers adjust the pricing of securities in the Fund to reflect any information that has become available after the close of the applicable foreign market. Discrepancies in performance between the applicable investment option and its performance benchmark that are due to “Fair Value Pricing” and other common index fund tracking factors (such as the timing of market closures, management fees, benchmark nuances, and others) will be taken into consideration in evaluating performance of the affected investment options.

Qualitative Measures
 Management team or other significant personnel turnover;  Changes in the product’s investment philosophy, process, style or risk profile;  Excessive or rapid asset growth or decline;
 Pending regulatory investigations or material legal proceedings;  Changes to firm ownership;
 Significant increase in management fees or expense ratio.  In the case of monitoring Target Retirement Date funds, the Committee shall consider the current and prospective composition of the Target Date funds (based on their glide path) and the corresponding risk and return implications relative to the benchmark and peer group constituents.

An investment option may remain on watch status until the Committee decides to take further action.

Committee actions include, but are not limited to, the following:
 Removing the investment option from watch status; and  Terminating the investment option and reallocating the assets to an alternate or replacement investment option by Committee direction.

To be removed from quantitative, performance related watch status, generally, performance for the preceding five year trailing periods should be above the benchmark index or median for at least two consecutive quarters. However, barring any breakdown in process, the Committee may decide to leave an option on watch for as long as they believe it is prudent to do so.

The Committee reserves the right to terminate investment option relationships at any time, for any reason when it determines such termination is in the best interests of the Plans and its participants and beneficiaries.

Upon termination, further contributions or transfers to an investment option may be frozen, or the option may be replaced with or without transferring existing assets from the replaced option. Once the decision to terminate an option and remove it from the Plans is made, asset transfer and liquidation should be handled to the best advantage of the Plans, with due consideration given to the anticipated effect on affected participants and beneficiaries.

INVESTMENT OVERSIGHT RESPONSIBILITY AND PROXY VOTING
The Committee shall have overall responsibility for the selection, monitoring and termination of all investment managers. Additionally, the Committee shall be responsible for reviewing and maintaining these investment policies and guidelines.

City of Vallejo 457, 401(a), and RHS Statement of Investment Policies and Guidelines 11 Proxy votes required by investment managers shall be cast by those parties designated by the Committee.

Voting rights shall be exercised in the best interest of the participants and beneficiaries of the Plans. The Committee may insist that they exercise their voting rights themselves by communicating their intention to do so in a timely manner.

GLOSSARY
Annualized Return
Rate of return of the account smoothed as though the return occurred equally over twelve-month periods.

When the specified time frame is for less than a year, the rate of return in projected as though the same performance continues to occur for a twelve-month period.

Benchmarks
A standard against which the performance of the portfolio can be measured, typically against a standard index, although a client manager may also set the benchmark.

Duration
The weighted maturity of a fixed-income investment’s cash flows, used in the estimation of the price sensitivity of fixed-income securities for a given change in interest rates. Time periods are weighted by multiplying by the present value of its cash flow divided by the bond’s price (a bond’s cash flows consist of coupon payments and repayment of capital). A bond’s duration will almost always be shorter than its maturity, with the exception of zero-coupon bonds, where maturity and duration are equal.

Growth Style Investing
Growth investors purchase companies that have above-average earnings growth and/or above-average sales growth rates.

Investment Objectives
The overall financial objectives of an investor. For example, whether the investor requires income or capital appreciation. The investor’s objectives govern the investment strategy.

Large Cap
Large Capitalization – refers to those companies with a market capitalization categorized as Large Cap by an industry standard data provider.

Liquidity
The ability to buy or sell an asset quickly and in large volume without substantially affecting the asset’s price.

Market Capitalization
The dollar value of a public company based on the total number of shares of stock available multiplied by the price per share.

Mid Cap
Mid Capitalization – refers to those companies with a market capitalization categorized as Mid Cap by an industry standard data provider.

City of Vallejo 457, 401(a), and RHS Statement of Investment Policies and Guidelines 12

GLOSSARY - CONTINUED
Net of Fees
After subtraction of management fees.

Peer Group
Contemporaries of the same asset class that can be compared against one another to achieve a larger sense of how the particular portfolio is performing.

Portfolio
Refers to the complete list of securities held in an investment vehicle.

Small Cap
Small Capitalization – refers to those companies with a market capitalization categorized as Small Cap by an industry standard data provider.

Standard Deviation
Measures the range of returns and is based on a Normal Curve. Managers with lower standard deviations than the index have historically had returns that tended to fall closer to their mean return compared to the index. Managers with higher standard deviations than the index have historically had returns that tended to be further dispersed around the mean than the index. This is another measure of volatility, but it doesn’t distinguish downside performance from upside performance.

Value Style Investing
Value investors rely on an examination of the underlying or unrealized value of a company as the primary criterion for deciding whether or not to buy a company’s stock. Value stocks are often priced lower than growth stocks due to slower growth expectations, recent financial difficulty, or a host of other reasons.

City of Vallejo 457, 401(a), and RHS Statement of Investment Policies and Guidelines 13

ADOPTED BY THE ADMINISTRATOR ON BEHALF OF THE CITY OF VALLEJO EMPLOYEES PLANS:

Signature:

Name:

Title:

Date:

EDUCATION POLICY STATEMENT

FOR THE
CITY OF VALLEJO 457 DEFERRED
COMPENSATION PLAN, 401(A) DEFINED

CONTRIBUTION PLAN, AND RETIREMENT

HEALTH SAVINGS PROGRAM COMMITTEE

CITY OF VALLEJO, CALIFORNIA
Table of Contents
INTRODUCTION ................................................................................................................................ 1 Background ..................................................................................................................................................................... 1 Purpose ............................................................................................................................................................................ 1 PART 1: EDUCATION POLICY – DECISION-MAKERS ................................................................. 2

1.1 Intent .................................................................................................................................................................. 2

1.2 Objectives of Fiduciary Education ................................................................................................................ 2

1.3 Types of Educational Programs. .................................................................................................................... 3

1.4 Process for Reviewing Education Objectives .............................................................................................. 3 PART 2: EDUCATION POLICY – PLAN PARTICIPANTS .............................................................. 4

2.1 Intent .................................................................................................................................................................. 4

2.2 Plan Objectives ................................................................................................................................................. 4

2.3 Duties and Responsibilities ............................................................................................................................. 5

2.4 Objective of Educational Programs ............................................................................................................ 56

2.5 Types of Educational Information ................................................................................................................ 6

2.6 Disclosure of Fees and Charges for Educational Services ......................................................................... 7

2.7 Communication to Participants ...................................................................................................................... 7 1 INTRODUCTION
Background
The City of Vallejo (“City”) offers to all eligible employees salary deferral retirement plans consisting of a 457(b) Deferred Compensation Plan, a 401(a) Defined Contribution Plan, and a Retirement Health Savings Program (“Plan” or “Plans”). The City, through the City of Vallejo 457 Deferred Compensation Plan, 401(a) Defined Contribution Plan, and Retirement Health Savings Program Committee (“Committee”), seeks to comply with the Internal Revenue Code sections 401 and 457 and other applicable laws and regulations.

The City recognizes the vital role of education for both plan fiduciaries (the Committee, Plan Administrator, and support staff) and Plan participants. The details of educational programs are divided into two parts: Part 1 covers the duties and responsibilities for fiduciary education. Part 2 covers the duties and responsibilities for participant education.

This Education Policy Statement (“Policy”) is based on established ERISA and state regulatory requirements and industry best practices regarding both City and Plan provider(s) (record keeper and/or consultant) responsibilities for education. The Policy is intended to aid the City and its Committee in meeting its fiduciary and other responsibilities pertaining to the Plans.

Purpose
The purpose of this Education Policy Statement is to document the procedures demonstrating “care, skill, prudence, and diligence” that will be used by the City in the development and monitoring of educational programs for the Plan fiduciaries in Part 1 and Plan participants in Part

2. The Policy intends to establish procedures for the identification, communication, and evaluation of educational programs to allow Plan participants to make informed decisions regarding their retirement planning, investments, and distributions. Further, the Policy intends to establish educational programs to allow Plan fiduciaries to fulfill their fiduciary due diligence responsibilities in managing the Plans.
2 PART 1: EDUCATION POLICY – PLAN FIDUCIARIES

1.1 Intent
For Plan fiduciaries and staff, it is the assertion of this Policy that the City and Plan provider(s) must:
 Acknowledge that it is critically important that Plan fiduciaries make informed decisions on all matters which come before them.
 Understand the primacy of all actions for the benefit of Plan participants and their beneficiaries.
 Adopt the types of objectives and procedures for Plan participants as stated in Part 2 of this Policy.
 Offer regular, recurring educational programs to Plan fiduciaries and staff that cover Plan compliance, legislative, and regulatory activities, fund selection and monitoring, and fiduciary best practices in operational standards.
 Encourage Plan fiduciaries to participate to the fullest extent possible in educational activities provided by recognized associations and institutes for defined contribution plans.  Establish and make a commitment to ongoing funding for internal and external educational programs as appropriate for the Plans.
 Develop an annual plan of scheduled educational programs for Plan fiduciaries and staff.  Expressly focus attention on new Plan fiduciaries and staff to assure they know and understand their fiduciary roles.
 Establish mutually agreeable performance standards for the delivery of education to Plan fiduciaries and staff.

1.2 Objectives of Fiduciary Education
The goal of fiduciary education is to assure that all Committee members and support staff understand their fiduciary and due diligence responsibilities in the actions they take on behalf of Plan participants and their beneficiaries. The objectives of fiduciary education are to:
 Assure that new Plan fiduciaries and staff receive comprehensive education covering their responsibilities.
 Especially for investment performance review, assure that Plan fiduciaries and staff understand basic fund evaluation methodology, fund objectives, and characteristics and appropriate benchmarks.
 Increase Plan fiduciary awareness of national best practices in Plan monitoring, especially in educational programs available to Plan participants.
3  Understand and help shape Plan review content and frequency.  Incorporate essential performance standards and financial guarantees into all requests for proposals and renegotiation of services by Plan provider(s).  Supply sufficient communication of information and education.  Wherever possible, screen and participate in the types of education programs offered to participants (e.g. group and individual education, guidance and advice services, basic Plan provider education programs, etc.).

1.3 Types of Educational Programs
Below are a series of categories and types of information provided in education to Plan fiduciaries.

These categories and informational types are meant to be illustrative, not exhaustive.  For new fiduciaries, a comprehensive review of basic plan features, documents (e.g. Plan Document, Investment Policy Statement, Fee Policy, Education Policy Statement, By-Laws, etc.), forms, past fiduciary actions (prior year of minutes), reports, etc.  Detailed review and understanding of charts/graphs used in Plan provider or third-party fund performance reviews.
 Detailed review and understanding of performance standards and guarantees used in Plan provider performance reviews.
 Familiarity with Plan participant education, guidance, and advice services.  Understanding special plan responsibilities, even if the task is outsourced, covering unforeseen emergencies, catch up provisions (both 50+ and special), loan options, domestic relation orders, and Roth feature.
 Awareness of rollover options and strategies for encouraging Plan participants to remain in the Plans after retirement.
 Coordination of defined benefit and defined contribution assets to influence both asset allocation strategies as well as retirement objectives.  Use of outside educational programs such as the National Association of Government Defined Contribution Administrators (NAGDCA), International Foundation of Employee Benefit Plans (IFEBP), and/or International Foundation of Retirement Education (InFRE).

1.4 Process for Reviewing Education Objectives
At least annually, the Committee will review this Policy and identify upcoming education based on Committee priorities. The Committee will determine the frequency of fiduciary education with the intent of having education modules frequently and broader, more comprehensive, education at least periodically.
4 PART 2: EDUCATION POLICY – PLAN PARTICIPANTS

2.1 Intent
For Plan participants, it is the assertion of this Policy that the City and Plan provider(s) must:
 Acknowledge that the purpose of education is to enable Plan participants to make selfinterested, informed decisions regarding their retirement planning and security.  Offer regular, recurring educational programs and services to Plan participants that incorporate basic plan information as well as investment guidance and advice.  Make financial planning services (including Certified Financial Planning services) available to all participants irrespective of age but especially those near or in retirement.  Tailor educational content to participants at various stages in their life/career (from early employment through retirement).
 Utilize diverse mediums and formats (face-to-face, print, electronic or telephonic, and/or internet) to maximize participant education.
 Develop an annual plan of scheduled educational programs to meet the diverse needs of Plan participants.
 Communicate to Plan participants, at least annually, the content and schedule of upcoming educational programs.
 Evaluate educational programs primarily based on participant satisfaction but also considering other behavioral impacts including plan participation, contribution, diversification, rebalancing, and distribution management.
 Establish mutually agreeable performance standards for the delivery of participant education.

2.2 Plan Objectives
The goal of the Plans is to provide all employees with a comprehensive, prudently managed voluntary retirement savings program. The Plan objectives are the following:
 The Plans are established for the exclusive benefit of the Plan participants and their beneficiaries.
 The Plans are a vehicle through which eligible employees and Plan participants may accumulate assets to provide for a portion of their retirement needs.  The Plans seek to provide a broad range of educational programs recognizing Plan participants’ diverse demographics and their differing retirement objectives.  The Plans will assure that investment guidance and advice programs are readily available with no cost or reasonable cost to Plan participants. Ideally, the range of programs will allow Plan participants to manage their own investments without assistance, to manage their own investments with assistance or to have their investments managed entirely by a designated provider of services to the Plans.
 The Plans will regularly, at least annually, review its educational policies, educational curriculum, performance standards, and procedures to assure that strong and effective strategies for plan participants are represented.
5 2.3 Duties and Responsibilities
The City must identify individuals responsible for carrying out Plan duties. The City has appointed a Committee whose general duties and responsibilities for Plan participant education are as follows:
 Establish educational services offered by Plan provider(s) to Plan participants.  Require Plan provider-adherence to this Policy.
 Develop education-specific Plan provider performance standards based on goals and financial guarantees that will be part of ongoing Plan provider evaluation.  Review this Policy at least annually and recommend amendments to the Policy at any time to reflect changes in the procedures or to incorporate requirements based on new regulations and/or best practices.
 Approve annual educational topics and the schedule of on-site educational programs targeted to both current employees and retiree participants and assure that the programs are easily accessible by all Plan participants.
 Identify multi-channel (i.e., electronic, face-to-face, printed, etc.) educational programs which are made available to Plan participants.
 Provide input and approve ongoing communication/marketing of educational programs.  Promote Plan participant use of guidance and investment advice services.  Encourage coordination of defined benefit and defined contribution information as well as other participant assets in order to achieve the most comprehensive development of asset allocation strategies.
 Establish and monitor, at least annually, the impact of educational programs on participant behavior including, but not limited to, the number of participants in the Plans, total and average Plan contributions, number of fund selections per participant, frequency of rebalancing by Plan participants, and Plan participant usage of different components of the educational program. Wherever possible, the identified information will be distinguished by gender, age, and department/occupation.
 Assure that the Policy is easily accessible by Plan participants as appropriate.  Although the Employee Retirement Income Security Act of 1974 (“ERISA”) does not apply to the Plan, the Committee intends to operate the Plan generally in conformance with ERISA 404(c).

2.4 Objective of Educational Programs
Each year, sufficient educational programs will be offered to cover the breadth of Plan participant needs from entry level personnel, mid- and near-term employees as well as retired Plan participants. The City deliberately chooses to organize its target groups for education into four categories: entry level, mid-career, pre-retirement, and retirement.

The objective of all educational programs is to elevate Plan participant understanding of their retirement financial objectives and to impact their behavior when they are planning for these objectives.
6 2.5 Types of Educational Information
Below are a series of categories and types of information provided in an educational program.

These categories and informational types are meant to be illustrative, not exhaustive.

Entry-Level
 Asset allocation strategies including investment strategies, diversification and risk of fund options, tax consequences, minimum required distributions, and liquidity strategies.  Basic investment strategies including traditional pre-tax contributions, untaxed asset growth, basic retirement objectives, self-risk-assessment, identification of retirement objectives and time horizon, basic understanding of diversification, asset allocation, and fund selection.
 Awareness of specific deferred compensation plan requirements including contribution limits, taxation, distribution requirements/restrictions (unforeseen emergencies, inservice, de minimus and post-service distributions) and portability.  Summary of City- and Plan provider-specific policies and documents including the Plan Document, application, and other transaction forms, investment and education policies, issue-specific documents (unforeseen emergencies, catch-up provisions, domestic relations orders).
 Summary of City procedures including timing and method of accessing account information and obtaining and completing transactions.

Mid-Career
 Asset allocation strategies including investment strategies, diversification and risk of fund options, tax consequences, minimum required distributions, and liquidity strategies.  Coordinating other assets with defined contribution assets, including defined benefit programs, other household income and assets, and Social Security benefits.  Understanding basic risk/reward theories within the core fund line-up and exposure to tools addressing risk tolerance, retirement objectives, and time horizon.  Increasing knowledge of investment terminology and concepts.  Considering available investment guidance and advice services and managed account options.
 Familiarity with asset allocation options including life cycle funds.

Pre-Retirees
 Asset allocation strategies including investment strategies, diversification and risk of fund options, tax consequences, minimum required distributions, and liquidity strategies.  Maximizing contributions to include 50+ and special catch-up provisions.  Preliminary understanding of distribution options and impact on meeting long-term retirement needs.
7  Termination options including use of sick leave, vacation, and other accrued benefits as contributions to their retirement plan assets.
 Rollover options and the pros and cons of maintaining funds in the Plan compared to non-Plan options.

Retirees
 Asset allocation strategies including investment strategies, diversification and risk of fund options, tax consequences, minimum required distributions, and liquidity strategies.  Evaluating alternate retirement options including Individual Retirement Accounts and annuitized distributions.
 Rollover options and the pros and cons of maintaining funds in the Plans compared to non-Plan options.

2.6 Disclosure of Fees and Charges for Educational Services Educational services requiring payment of participant fees and charges must be fully disclosed to the City and fiduciaries before services are made available to Plan participants.

In addition, Plan participant fees and charges for educational services must be disclosed to all Plan participants at enrollment and at any other time as appropriate. It is important to note that the current Plan providers (MissionSquare and Hyas Group) do not charge any fee for educational and/or financial planning services.

2.7 Communication to Participants
Information about education programs and services will be made available to Plan participants.

The City will communicate, at least annually, announcing the schedule of educational on-site programs, the schedule of Plan provider representative availability for group sessions and individual participant appointments, website educational material, and special support programs (covering guidance and advice services, managed account options and any other financial planning services). Communication will be delivered in such format(s) to reach the widest participant audience, as determined by the City.
_________________________________________________ _____________________ Chair, Committee Date

Vallejo City CouncilApril 29, 2024

Vallejo City Council
April 29, 2024