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AC 01-26-2026 Searchable Packet
CITY OF CUPERTINO AUDIT COMMITTEE AGENDA 10185 North Stelling Road, Quinlan Conference Room and via Teleconference Monday, January 26, 2026 4:00 PM Regular Meeting IN-PERSON AND TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION OPTIONS TO OBSERVE: Members of the public wishing to observe the meeting may do so in one of the following ways: 1) Attend in person at Quinlan Community Center, Conference Room, 10185 N. Stelling Road. 2) Watch a live stream online at https://youtube.com/@cupertinocitycommission. 3) Attend in person at a remote Teleconference Location noticed pursuant to Gov . Code 54953(b)(2), which location, if noticed, would be stated on the cover page of this agenda . OPTIONS TO PARTICIPATE AND COMMENT: Members of the public wishing to address the Audit Committee may do so in the following ways: 1) Appear in person at Quinlan Community Center, Conference Room, 10185 N. Stelling Road: A. During “Oral Communications”, the public may comment on matters not on the agenda, and for agendized matters, the public may comment during the public comment period for each agendized item. B. Speakers are requested to complete a Speaker Card. While completion of Speaker Cards is voluntary and not required to attend the meeting or provide comments, it is helpful for the purposes of ensuring that all speakers are called upon . C. Speakers must wait to be called and may begin speaking when recognized by the Chair . D. Speakers are limited to three (3) minutes each. However, the Chair may reduce the speaking time depending on the number of people who wish to speak on an item . A speaker representing a group of 2 to 5 or more people who are present may have up to 2 minutes per group member, up to 10 minutes maximum. E. Please note that due to cyber security concerns, speakers are not allowed to connect any personal devices to any City equipment. However, speakers that wish to share a document (e.g. presentations, photographs or other documents) during oral comments may do so by : a. E-mailing the document to auditcommittee@cupertino.gov by 1:00 p.m. and staff will Page 1 1 Audit Committee Agenda January 26, 2026 advance the slides/share the documents during your oral comment. 2) Written communications as follows: A. E-mail comments to AuditCommittee@cupertino.gov. B. Regular mail or hand delivered addressed to the: Cupertino Audit Committee, City Hall, 10300 Torre Avenue, Cupertino, CA 95014 C. Comments addressed to the Audit Committee received by 2:00 p.m. on the day of the meeting will be included in written communications published and distributed before the beginning of the meeting. D. Comments addressed to the Audit Committee received after the 2:00 p.m. deadline, but through the end of the Commission meeting, will be posted to the City’s website by the end of the following business day. 3) Teleconference in one of the following ways: A. Online via Zoom on an electronic device (Audio and Video): Speakers must register in advance by clicking on the link below to access the meeting : https://cityofcupertino.zoom.us/webinar/register/WN_nLVPjacMTVGXJZqpC298vA a. Registrants will receive a confirmation email containing information about joining the webinar. b. Speakers will be recognized by the name they use for registration. Once recognized, speakers must click ‘unmute’ when prompted to speak. c. Please read the following instructions about technical compatibility carefully : One can directly download the teleconference (Zoom) software or connect to the meeting in their internet browser. If a browser is used, make sure the most current and up-to-date browser, such as the following, is used: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers, including Internet Explorer . B.By Phone (Audio only): No registration is required in advance and speakers may join the meeting as follows: a. Dial 669-900-6833 and enter WEBINAR ID: 824 7963 8591 b. To “raise hand” to speak: Dial *9; When asked to unmute: Dial *6 c. Speakers will be recognized to speak by the last four digits of their phone number . C.Via an H.323/SIP room system: H.323 Information: 144.195.19.161 (US West) 206.247.11.121 (US East) Meeting ID: 824 7963 8591 SIP: 82479638591@zoomcrc.com Page 2 2 Audit Committee Agenda January 26, 2026 D. Online via the teleconferencing device (Audio and Video) being used to provide access to the meeting from a remote Teleconference Location noticed pursuant to Gov . Code 54953(b)(2), which location, if noticed, would be stated on the cover page of this agenda . a) Speakers are required to notify the City Clerk via email to cityclerk@cupertino.gov prior to noon on the date of the meeting during which they plan to participate and comment from the remote location noticed to ensure the City Clerk is prepared to accept their comment . b) If the teleconferencing device malfunctions impeding access to the meeting from the remote location, the speaker may alternatively participate via the other options for remote participation provided above. ROLL CALL POSTPONEMENTS AND ORDERS OF THE DAY ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the Committee on any matter within the jurisdiction of the Committee and not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will prohibit the Commission from making any decisions with respect to a matter not on the agenda. CONSENT CALENDAR Items appearing on the Consent Calendar are considered routine Audit Committee business and may be approved by one motion. Typical items may include meeting minutes and investment reports. Any member of the Committee may request to have an item removed from the Consent Calendar. Members of the public may provide input on one or more consent calendar items when the Chair asks for public comments on the Consent Calendar. 1.Subject: Approval of December 1, 2025 Audit Committee meeting minutes Approval of December 1, 2025 Audit Committee meeting minutes A - Draft Minutes 2.Subject: Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending December 30, 2025 and forward to City Council Recommended Action: Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending December 30, 2025 and forward to City Council Presenter: PARS and US Bank A - OPEB Pension Section 115 Trust Performance Report for Quarter Ending December 31, 2025 B - City of Cupertino Investment Review Page 3 3 Audit Committee Agenda January 26, 2026 3.Subject: Receive the Treasurer's Investment Report for the Quarter Ending December 31, 2025 Recommended Action: Receive the Treasurer's Investment Report for the Quarter Ending December 31, 2025 and forward to City Council Presenter: Jonathan Orozco, Acting Director of Administrative Services and City Treasurer, and Chandler Asset Management Staff Report A – Chandler Investment Report December 2025 B – Chandler Custodial Statement December 2025 C – PARS Pension and OPEB Account Statement December 2025 D – LAIF Account Statement December 2025 OLD BUSINESS - NONE NEW BUSINESS 4.Subject: ACTION ITEM Appointment of Chair and Vice Chair Appoint Chair and Vice Chair Presenter: Jonathan Orozco, Acting Director of Administrative Services and City Treasurer 4:10(10) 5.Subject: ACTION ITEM Receive OPEB & Pension Section 115 Trust Investment Policy Receive OPEB & Pension Section 115 Trust Investment Policy and forward to City Council Presenter: PARS and US Bank 4:20(40) Staff Report A - OPEB Trust Investment Policy B - Pension Trust Investment Policy 6.Subject: INFORMATIONAL ITEM Receive the Internal Audit and Fraud, Waste, and Abuse programs update Recommended Action: Receive the Internal Audit and Fraud, Waste, and Abuse programs update Presenter: Baker Tilly 5:00(15) A - Internal Audit Status Report 01-16-26 B - Cupertino Audit Validation Report - January 2026 8.Subject: INFORMATIONAL ITEM Receive the proposed Audit Committee 2026 Schedule and Workplan Page 4 4 Audit Committee Agenda January 26, 2026 Recommended Action: Receive the proposed Audit Committee 2026 Schedule and Workplan Presenter: Jonathan Orozco, Acting Director of Administrative Services and City Treasurer 5:15(5) A - Proposed Audit Committee 2026 Schedule and Work Plan STAFF AND COMMITTEE REPORTS COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS FUTURE AGENDA SETTING ADJOURNMENT In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the meeting to arrange for assistance. In addition, upon request in advance by a person with a disability, meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. Any writings or documents provided to a majority of the members after publication of the agenda will be made available for public inspection. Please contact the City Clerk’s Office in City Hall located at 10300 Torre Avenue, Cupertino, California 95014, during normal business hours. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section 2.08.100 written communications sent to the City Council, Commissioners or staff concerning a matter on the agenda are included as supplemental material to the agendized item. These written communications are accessible to the public through the City website and kept in packet archives. Do not include any personal or private information in written communications to the City that you do not wish to make public, as written communications are considered public records and will be made publicly available on the City website. Page 5 5 CITY OF CUPERTINO Agenda Item 26-14795 Agenda Date: 1/26/2026 Agenda #: 1. Subject: Approval of December 1, 2025 Audit Committee meeting minutes Approval of December 1, 2025 Audit Committee meeting minutes CITY OF CUPERTINO Printed on 1/23/2026Page 1 of 1 powered by Legistar™6 DRAFT MINUTES AUDIT COMMITTEE Monday, December 1, 2025 At 1:00 p.m. Chair Eno Schmidt called the special Audit Committee meeting to order at the Quinlan Conference Room, 10185 North Stelling Road and via teleconference. ROLL CALL Present: Chair Eno Schmidt, Vice Mayor Kitty Moore, Council Member Sheila Mohan (arrived at the meeting at 1:01 p.m.), and Committee Member William Wong. Absent: Vice Chair Hanyan Wu. ORDERS OF THE DAY – None. APPROVAL OF MINUTES 1. Subject: Approve Minutes of Regular Meeting on October 27, 2025 Recommended Action: Approve Minutes of Regular Meeting on October 27, 2025 Chair Schmidt opened the public comment period and, seeing no one, closed the public comment period. MOTION: Moore moved and Schmidt seconded to approve the minutes of the regular meeting on October 27, 2025. The motion carried with the following vote: Ayes: Moore, Schmidt, Wong. Noes: None. Abstain: None. Absent: Mohan, Wu. POSTPONEMENTS – None. ORAL COMMUNICATIONS – None. OLD BUSINESS – None. NEW BUSINESS 2. Subject: ACTION ITEM Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending September 30, 2025 and forward to City Council Recommended Action: Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending September 30, 2025 and forward to City Council Presenter: PARS and US Bank PARS and US Bank gave a presentation. 7 Audit Committee Minutes December 1, 2025 US Bank representative Dennis Mullins gave a presentation. Committee members asked questions which staff and the presenters responded to. Item was deferred due to incorrect noticing for the item. Chair Schmidt opened the public comment period and, seeing no one, closed the public comment period. 3. Subject: ACTION ITEM Receive the FY 2024-25 Annual Comprehensive Financial Report (ACFR) and Supplemental Reports and forward to City Council Recommended Action: Receive the FY 2024-25 Annual Comprehensive Financial Report (ACFR) and Supplemental Reports and forward to City Council Presenter: Jonathan Orozco, Finance Manager and The Pun Group 1:45(30) Finance Manager Jonathan Orozco introduced Pun Group representative Frances Kuo, who gave a presentation. Committee members asked questions which staff and the presenter responded to. Chair Schmidt opened the public comment period and, seeing no one, closed the public comment period. Committee Members made comments. 4. Subject: INFORMATIONAL ITEM Receive the proposed Audit Committee 2026 Schedule and Workplan Recommended Action: Receive the proposed Audit Committee 2026 Schedule and Workplan Presenter: Jonathan Orozco, Finance Manager 2:15(10) Finance Manager Jonathan Orozco gave a presentation. Committee Members asked questions which staff responded to. Committee Members made the following recommendations: Determine if the Quinlan Conference room is available to extend the length of the Audit Committee Meeting for the Municipal Code Updates. 8 Audit Committee Minutes December 1, 2025 Add the OPEB and Pension Trust Performance Report to the Consent Calendar. Include the Quarterly Treasurer’s Investment Report on the Consent Calendar, with meeting discussion focused on key items rather than a full review of the report. Prioritize additional meeting time for the Audit Work Program and Internal Audit Program. Streamline Audit Committee meetings to focus on core Audit Committee responsibilities. Direct staff to consult with the City Attorney regarding the Audit Committee’s role in reviewing reserve-related policies, including whether amendments to the Municipal Code would be required, and report back to the Committee. Obtain an independent, third-party review as part of the Annual Review of the City Investment Policy. Chair Schmidt opened the public comment period and, seeing no one, closed the public comment period. STAFF AND COMMITTEE REPORTS – None. COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS – None. FUTURE AGENDA SETTING – None. ADJOURNMENT At 2:52 p.m. Chair Schmidt adjourned the regular Audit Committee Meeting. Minutes prepared by: Lindsay Nelson, Administrative Assistant 9 CITY OF CUPERTINO Agenda Item 26-14796 Agenda Date: 1/26/2026 Agenda #: 2. Subject:Receive OPEB &Pension Section 115 Trust Performance Report for Quarter Ending December 30, 2025 and forward to City Council Receive OPEB &Pension Section 115 Trust Performance Report for Quarter Ending December 30, 2025 and forward to City Council Presenter: PARS and US Bank CITY OF CUPERTINO Printed on 1/23/2026Page 1 of 1 powered by Legistar™10 City of Cupertino PARS 115 Trust – OPEB Prefunding Program & Pension Rate Stabilization Program Plan Client Review January 26 , 2026 Replace with local or generic image. Image should reflect the agency in the best possible way. Try to find bright, energetic imagery. Send image to back (make sure white gradient on top is visible) The title box is adjustable; simply type the full name (Title Case – not CAPS) of the agency and allow the box to grow upwards as necessary. Afterwards, the white line can be manually adjusted to fit. 11 City of Cupertino ▎ 2 Pars 115 Trust Team Trust Administrator & Consultant* 40+ Years of Experience (1984-2025) 2,300+ Plans under Administration 1,100+ Public Agency Clients $10.7 B+ Assets under Administration Investment Manager •A division of U.S. Bancorp Asset Management, Inc. •Fixed income and multi asset portfolios •Strategic Blend and Index platform options •Customized portfolios (with minimum asset level) 41 Years of Investment Experience (As of 9/30/2025) $247.5 B * Assets under Management & Advisement Trustee •5th largest commercial bank and one of the nation’s largest trustees for Section 115 trusts •Safeguard plan assets •Oversight protection as plan fiduciary •Custodian of assets 162 Years of Experience (1863-2025) $11.0 T Assets under Administration 550+ 115 Trust Clients •Serves as record-keeper, consultant, and central point of contact •Sub-trust accounting •Coordinates all agency services •Monitors plan compliance (IRS/GASB/State Government Code) •Processes contributions/disbursements •Hands-on, dedicated support teams 750 K+ Plan Participants *Please see disclosures at the end of this presentation As of September 30, 2025 * See important information regarding PARS in the Disclaimer page at the end of the presentation. 12 City of Cupertino ▎ 3 Subaccounts OPEB and pension assets are individually sub-accounted, and can be divided by dept., bargaining group, or cost center. Assets in the PARS Section 115 Combination Trust can be used to address unfunded liabilities. Financial Stability Allows separate investment strategies for OPEB and pension subaccounts. Flexible Investing OPEB and pension assets aggregate and reach lower fees on tiered schedule sooner – saving money! Economies-of-ScaleAnytime Access Trust funds are available anytime; OPEB for OPEB and pension for pension. No set-up costs, no minimum annual contribution amounts, and no fees until assets are added. No Set Up Cost or Minimums Retiree Medical Benefits Prefund OPEB GASB 75 OPEB Reimburse agency; or Pay benefits provider Pension Rate Stabilization Program Prefund Pension (PRSP)GASB 68 Pension Reimburse agency; or Pay retirement system Assets can be used to:Assets can be used to: prefund either or both General Fund PARS IRS -Approved Section 115 Trust 13 Client CONFIDENTIAL Client CONFIDENTIAL Investment and insurance products and services including annuities are: NOT A DEPOSIT ●NOT FDIC INSURED ●MAY LOSE VALUE ●NOT BANK GUARANTEED ●NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY PARS/CITY OF CUPERTINO 115P OPEB & PENSION ACCOUNTS December 31, 2025 Investment Review 14 Client CONFIDENTIAL Your Team Sub-advised investment services are provided by PFM Asset Management (“PFMAM”). PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset Management, Inc., which is the legal entity providing investment advisory services. U.S. Bancorp Asset Management, Inc. is a registered investment adviser, a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S. Bank N.A. is not responsible for and does not guarantee the products, services, or performance of U.S. Bancorp Asset Management, Inc. For more information regarding PFMAM’s services please visit www.pfmam.com. Dennis Mullins Vice President & Senior Institutional Client Portfolio Manager PFM Asset Management 513.304.0398 Dennis.Mullins@usbank.com Ryan Maxey Vice President & Relationship Manager U.S. Bank Institutional Trust & Custody 503.464.3789 Ryan.Maxey@usbank.com Jennifer Meza, CEBS Manager, Consulting PARS (Public Agency Retirement Services) 800.540.6369 Ext. 141 (office) 949.375.8239 (cell) www.pars.org Mitch Barker Executive Vice President PARS (Public Agency Retirement Services) 949.310.4876 (cell) www.pars.org City of Cupertino ▎ 515 Client CONFIDENTIAL Table of Contents Page 4 – PORTFOLIO REVIEW PARS/CITY OF CUPERTINO 115P - OPEB (X9600) •Portfolio Overview •Equity Analysis •Fixed Income Analysis •Performance (AGG460596) •Holdings PARS/CITY OF CUPERTINO 115P – PENSION (X9601) •Portfolio Overview •Equity Analysis •Fixed Income Analysis •Performance •Holdings Page 20 – INVESTMENT POLICIES Page 33 – MARKET REVIEW Page 36 – DISCLOSURES, DEFINITIONS, DESCRIPTIONS City of Cupertino ▎ 616 Client CONFIDENTIAL Portfolio Review - OPEB Provided by U.S Bank 17 PARS/CITY OF CUPERTINO 115P - OPEB Portfolio Overview Account: XXXXXX9600 Holdings Method: Direct Report Date: 12/31/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 12/31/2025 Portfolio Summary Inv. Objective Balanced/Nontaxable-1 Total Portfolio Value $46,047,723 Net Realized Cap Gains YTD $144,666 Annual Income Projected $1,378,474 Current Yield 2.99% Number of Securities 8 Portfolio Mgr.Dennis S. Mullins, CFA Portfolio Asset Allocation Equity $29,630,185 64.35% Fixed Income $13,032,926 28.30% Real Assets $2,182,878 4.74% Cash $1,201,734 2.61% Invested Total $46,047,723 100.00% 64% 28% 5% 3% Equity Fixed Income Real Assets Cash Portfolio Model Allocation Cash Equivalents Investment Grade High Yield Inflation Protected Securities Reinsurance Large Cap U.S. Equity Mid Cap U.S. Equity Small Cap U.S. Equity Developed Markets Equity Emerging Markets Equity U.S. Listed Real Estate Commodities 0% 5% 10% 15% 20% 25% 30% 35% 40% Portfolio Affluent Non-Taxable Strategic Balanced Affluent Non-Taxable Tactical Balanced City of Cupertino ▎ 818 PARS/CITY OF CUPERTINO 115P - OPEB Fixed Income Overview Account: XXXXXX9600 Holdings Method: Direct Report Date: 12/31/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 12/31/2025 Fixed Income Summary Inv. Objective Balanced/Nontaxable-1 Total Fixed Income Value $13,032,926 Current Yield 4.09% Annual Income Projected $532,798 Number of Securities 2 Portfolio Mgr.Dennis S. Mullins, CFA Fixed Income Asset Allocation Investment Grade $11,002,024 84.42% High Yield $2,030,901 15.58% 84% 16% Investment Grade High Yield Fixed Income Sector Exposures Mutual Funds & ETFs $13,032,926 100.00%100% Mutual Funds & ETFs Fixed Income Market Value 12/3 0 / 2 0 2 2 12/2 9 / 2 0 2 3 12/3 1 / 2 0 2 4 12/3 1 / 2 0 2 5 Prev i o u s C l o s e 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 City of Cupertino ▎ 919 PARS/CITY OF CUPERTINO 115P - OPEB Equity Overview Account: XXXXXX9600 Holdings Method: Direct and Indirect (securities held in mutual funds & ETFs)Report Date: 12/31/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 12/31/2025 Equity Summary Inv. Objective Balanced/Nontaxable-1 Total Equity Value $29,630,185 Current Yield 2.48% Annual Income Projected $735,227 Number of Securities 4 Portfolio Mgr.Dennis S. Mullins, CFA Equity Asset Allocation Large Cap U.S. $18,659,676 62.98% Developed Mkts $7,415,397 25.03% Emerging Mkts $2,494,763 8.42% Small Cap U.S. $1,060,348 3.58% 63% 25% 8% 4% Large Cap U.S.Developed Mkts Emerging Mkts Small Cap U.S. Bottom 5/ Top 5 Contributors (Trailing 12 Months) IWBFSPSXFPADXFSSNXJVLIXFSMDXHNACX -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Equity Global Distribution North America Europe Asia Middle East South America Africa 69.80% 15.38% 13.60% 0.62% 0.34% 0.26% Equity Country Distribution United States Japan United Kingdom France Hong Kong 69.58% 5.10% 3.44% 2.37% 2.29% City of Cupertino ▎ 1020 PARS/CITY OF CUPERTINO 115P - OPEB Common Stock Detail Comparison Account: XXXXXX9600 Holdings Method: Direct and Indirect (securities held in mutual funds & ETFs)Report Date: 12/31/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 12/31/2025 Top 10 Common Stock Holdings Stock Wt. (%) Full Port Wt. (%)Yield (%) YTD Return* (%) 52 Wk Return* (%) NVIDIA Corporation 4.22 2.82 0.02 38.9 38.9 Apple Inc.3.83 2.56 0.40 9.0 9.0 Microsoft Corporation 3.47 2.32 0.76 15.6 15.6 Amazon.com, Inc.2.14 1.43 0.00 5.2 5.2 Alphabet Inc. Class A 1.76 1.18 0.26 66.0 66.0 Broadcom Inc.1.55 1.03 0.78 50.6 50.6 Alphabet Inc. Class C 1.44 0.96 0.26 65.4 65.4 Meta Platforms Inc Class A 1.39 0.93 0.33 13.1 13.1 Tesla, Inc.1.23 0.82 0.00 11.4 11.4 Taiwan Semiconductor Manufa…0.94 0.63 1.22 46.5 46.5 Common Stock Characteristics Portfolio ACWI Market Cap - Wtd Avg $826.5B $945.4B Market Cap - Median $6.9B $19.8B Dividend Yield 1.75 1.58 P/E NTM 18.9 18.5 P/E LTM 22.5 22.4 ROE (%)20.1 21.9 1 Yr Beta vs. S&P Composite .84 .84 Est 3-5 Yr EPS Growth (%)11.6 12.2 Hist 3 Yr EPS Growth (%)16.4 17.6 Number of Securities 4872 2260 Common Stock Sector Exposures 5% 10% 15% 20% 25% 30% Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities Portfolio ACWI Portfolio ACWI 7.99 8.94 9.74 10.30 4.72 5.10 2.84 3.36 15.63 16.82 9.39 9.24 10.83 10.60 24.31 27.81 3.08 3.54 9.04 1.76 2.41 2.54 Common Stock Market Cap Distribution > 50B 10B to 50B 2B to 10B 250MM to 2B < 250MM 0% 10% 20% 30% 40% 50% 60% 70% 80%Portfolio ACWI *Specific to the security - does not represent performance in the portfolio. City of Cupertino ▎ 1121 Client CONFIDENTIAL Custom Benchmark ActualTargetRangeBenchmarkAsset Class 64.4%63%50%-70%MSCI ACWI Index (net)Equities 28.3%29%20%-40%BBARC US Aggregate Bond IndexFixed Income 4.7%5%0%-15%S&P Global REIT TR USDReal Estate 0%2%0%-10%S&P GSCI Commodity IndexCommodities 2.6%1%0%-10%FTSE 3-Mo US T-Bill IndexCash CITY OF CUPERTINO OPEB City of Cupertino ▎ 1222 Selected Period Performance Period Ending: 12/31/2025PARS/CITY OF CUPERTINO OPEB AGG (****60596) Year Inception to Date to Date Market Value (1 Year) 3 Months 1 Year 3 Years 5 Years 139 Months 07/01/2010 Total Portfolio Gross of Fees 46,097,294 16.39 2.28 16.39 15.11 6.76 6.94 7.40 Total Portfolio Net of Fees 46,097,294 16.20 2.24 16.20 14.91 6.58 6.73 City of Cupertino 16.73 2.40 16.73 14.79 7.58 7.14 8.21 Total Equity 29,630,185 21.90 3.16 21.90 20.26 9.52 10.46 12.15 MSCI ACWI (Net)22.34 3.29 22.34 20.65 11.19 9.81 11.03 Russell 3000 Index 17.15 2.40 17.15 22.25 13.15 13.00 14.72 S&P 500 Index (Total Return)17.88 2.66 17.88 23.01 14.42 13.59 15.12 S&P MidCap 400 Index 7.50 1.64 7.50 12.56 9.12 9.56 12.14 S&P SmallCap 600 Index 6.02 1.70 6.02 10.17 7.31 8.89 11.75 MSCI EAFE Index (Net)31.22 4.86 31.22 17.22 8.92 6.15 7.91 MSCI Emerging Markets Index (Net)33.57 4.73 33.57 16.40 4.20 5.24 5.29 Total Fixed Income 13,079,279 7.34 1.03 7.34 5.54 .81 1.29 2.06 BBARC US Aggregate Bond Index 7.30 1.10 7.30 4.66 -.36 1.95 2.42 BBARC Global Aggregate Index 8.17 .24 8.17 3.98 -2.15 .51 1.48 Total Real Assets 2,182,878 2.67 -1.81 2.67 8.25 5.98 S&P Global REIT Index (Gross)8.88 -.55 8.88 8.06 5.02 4.94 7.87 S&P GSCI Index 7.12 .97 7.12 3.86 14.65 -2.09 -.18 Total Cash Equivalents 1,204,952 4.21 .98 4.21 4.79 3.16 1.79 1.34 FTSE 3 Month Treasury Bill Index 4.40 1.02 4.40 5.03 3.31 1.92 1.45 Pending Cash 0 .00 .00 .00 .00 .00 .00 .00 ▎ 1323 PARS/CITY OF CUPERTINO 115P - OPEB Portfolio Holdings Account: XXXXXX9600 Holdings Method: Direct Report Date: 12/31/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 12/31/2025 Symbol % of Port.Price Shares/ Units Portfolio Value Cost Basis Unrealized Gain/Loss Current Yield Projected Annual Income Total 100.0 46,047,723 39,760,252 6,287,471 2.99 1,378,474 Cash 2.61 1,201,734 1,201,734 0 3.68 44,265 Cash Equivalents 2.61 1,201,734 1,201,734 0 3.68 44,265 FIRST AM GOVT OB FD CL X 31846V336 2.61 1.00 1,201,734 1,201,734 1,201,734 0 3.68 44,265 Fixed Income 28.30 13,032,926 12,793,667 239,258 4.09 532,798 Investment Grade 23.89 11,002,024 10,684,603 317,421 3.56 391,739 Mutual Funds & ETFs 23.89 11,002,024 10,684,603 317,421 3.56 391,739 Fidelity U.S. Bond Index Fund FXNAX 23.89 10.56 1,041,858 11,002,024 10,684,603 317,421 3.56 391,739 High Yield 4.41 2,030,901 2,109,065 -78,163 6.95 141,059 Mutual Funds & ETFs 4.41 2,030,901 2,109,065 -78,163 6.95 141,059 Artisan High Income Fund - Institutional Sh…APHFX 4.41 9.20 220,750 2,030,901 2,109,065 -78,163 6.95 141,059 Equity 64.35 29,630,185 23,575,927 6,054,259 2.48 735,227 Large Cap U.S. Equity 40.52 18,659,676 15,058,800 3,600,877 1.00 185,927 Mutual Funds & ETFs 40.52 18,659,676 15,058,800 3,600,877 1.00 185,927 iShares Russell 1000 ETF IWB 40.52 373.44 49,967 18,659,676 15,058,800 3,600,877 1.00 185,927 Small Cap U.S. Equity 2.30 1,060,348 836,017 224,331 2.17 22,969 Mutual Funds & ETFs 2.30 1,060,348 836,017 224,331 2.17 22,969 Fidelity Small Cap Index Fund FSSNX 2.30 30.93 34,282 1,060,348 836,017 224,331 2.17 22,969 Developed Markets Equity 16.10 7,415,397 5,879,818 1,535,579 6.31 467,609 Mutual Funds & ETFs 16.10 7,415,397 5,879,818 1,535,579 6.31 467,609 Fidelity International Index Fund FSPSX 16.10 60.80 121,964 7,415,397 5,879,818 1,535,579 6.31 467,609 Emerging Markets Equity 5.42 2,494,763 1,801,292 693,471 2.35 58,722 Mutual Funds & ETFs 5.42 2,494,763 1,801,292 693,471 2.35 58,722 Fidelity Emerging Markets Index Fund FPADX 5.42 13.68 182,366 2,494,763 1,801,292 693,471 2.35 58,722 Real Assets 4.74 2,182,878 2,188,924 -6,046 3.03 66,184 U.S. Listed Real Estate 4.74 2,182,878 2,188,924 -6,046 3.03 66,184 iShares Core U.S. REIT ETF USRT 4.74 56.96 38,323 2,182,878 2,188,924 -6,046 3.03 66,184 City of Cupertino ▎ 1424 Client CONFIDENTIAL Portfolio Review - Pension Provided by U.S Bank 25 PARS/CITY OF CUPERTINO 115P- PENSION Portfolio Overview Account: XXXXXX9601 Holdings Method: Direct Report Date: 12/31/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 12/31/2025 Portfolio Summary Inv. Objective Balanced/Nontaxable-1 Total Portfolio Value $26,200,150 Net Realized Cap Gains YTD $67,598 Annual Income Projected $777,645 Current Yield 2.97% Number of Securities 8 Portfolio Mgr.Dennis S. Mullins, CFA Portfolio Asset Allocation Equity $17,009,654 64.92% Fixed Income $7,106,344 27.12% Real Assets $1,224,697 4.67% Cash $859,455 3.28% Invested Total $26,200,150 100.00% 65% 27% 5% 3% Equity Fixed Income Real Assets Cash Portfolio Model Allocation Cash Equivalents Investment Grade High Yield Inflation Protected Securities Reinsurance Large Cap U.S. Equity Mid Cap U.S. Equity Small Cap U.S. Equity Developed Markets Equity Emerging Markets Equity U.S. Listed Real Estate Commodities 0% 5% 10% 15% 20% 25% 30% 35% 40% Portfolio Affluent Non-Taxable Strategic Balanced Affluent Non-Taxable Tactical Balanced City of Cupertino ▎ 1626 PARS/CITY OF CUPERTINO 115P- PENSION Fixed Income Overview Account: XXXXXX9601 Holdings Method: Direct Report Date: 12/31/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 12/31/2025 Fixed Income Summary Inv. Objective Balanced/Nontaxable-1 Total Fixed Income Value $7,106,344 Current Yield 4.14% Annual Income Projected $294,002 Number of Securities 2 Portfolio Mgr.Dennis S. Mullins, CFA Fixed Income Asset Allocation Investment Grade $5,895,929 82.97% High Yield $1,210,415 17.03% 83% 17% Investment Grade High Yield Fixed Income Sector Exposures Mutual Funds & ETFs $7,106,344 100.00%100% Mutual Funds & ETFs Fixed Income Market Value 12/3 0 / 2 0 2 2 12/2 9 / 2 0 2 3 12/3 1 / 2 0 2 4 12/3 1 / 2 0 2 5 Prev i o u s C l o s e 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 City of Cupertino ▎ 1727 PARS/CITY OF CUPERTINO 115P- PENSION Equity Overview Account: XXXXXX9601 Holdings Method: Direct and Indirect (securities held in mutual funds & ETFs)Report Date: 12/31/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 12/31/2025 Equity Summary Inv. Objective Balanced/Nontaxable-1 Total Equity Value $17,009,654 Current Yield 2.44% Annual Income Projected $414,853 Number of Securities 4 Portfolio Mgr.Dennis S. Mullins, CFA Equity Asset Allocation Large Cap U.S. $10,806,980 63.53% Developed Mkts $4,106,775 24.14% Emerging Mkts $1,492,572 8.77% Small Cap U.S. $603,327 3.55% 64% 24% 9% 4% Large Cap U.S.Developed Mkts Emerging Mkts Small Cap U.S. Bottom 5/ Top 5 Contributors (Trailing 12 Months) IWBFSPSXFPADXFSSNXJVLIXFSMDXHNACX -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Equity Global Distribution North America Europe Asia Middle East South America Africa 70.25% 14.88% 13.62% 0.63% 0.35% 0.27% Equity Country Distribution United States Japan United Kingdom Hong Kong France 70.01% 4.93% 3.32% 2.35% 2.29% City of Cupertino ▎ 1828 PARS/CITY OF CUPERTINO 115P- PENSION Common Stock Detail Comparison Account: XXXXXX9601 Holdings Method: Direct and Indirect (securities held in mutual funds & ETFs)Report Date: 12/31/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 12/31/2025 Top 10 Common Stock Holdings Stock Wt. (%) Full Port Wt. (%)Yield (%) YTD Return* (%) 52 Wk Return* (%) NVIDIA Corporation 4.27 2.87 0.02 38.9 38.9 Apple Inc.3.87 2.61 0.40 9.0 9.0 Microsoft Corporation 3.51 2.36 0.76 15.6 15.6 Amazon.com, Inc.2.16 1.46 0.00 5.2 5.2 Alphabet Inc. Class A 1.78 1.20 0.26 66.0 66.0 Broadcom Inc.1.56 1.05 0.78 50.6 50.6 Alphabet Inc. Class C 1.45 0.98 0.26 65.4 65.4 Meta Platforms Inc Class A 1.41 0.95 0.33 13.1 13.1 Tesla, Inc.1.24 0.83 0.00 11.4 11.4 Taiwan Semiconductor Manufa…0.99 0.66 1.22 46.5 46.5 Common Stock Characteristics Portfolio ACWI Market Cap - Wtd Avg $834.6B $945.4B Market Cap - Median $6.9B $19.8B Dividend Yield 1.74 1.58 P/E NTM 18.9 18.5 P/E LTM 22.5 22.4 ROE (%)20.2 21.9 1 Yr Beta vs. S&P Composite .84 .84 Est 3-5 Yr EPS Growth (%)11.7 12.2 Hist 3 Yr EPS Growth (%)16.4 17.6 Number of Securities 4872 2260 Common Stock Sector Exposures 5% 10% 15% 20% 25% 30% Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities Portfolio ACWI Portfolio ACWI 8.06 8.94 9.77 10.30 4.70 5.10 2.84 3.36 15.57 16.82 9.37 9.24 10.76 10.60 24.55 27.81 3.07 3.54 8.90 1.76 2.40 2.54 Common Stock Market Cap Distribution > 50B 10B to 50B 2B to 10B 250MM to 2B < 250MM 0% 10% 20% 30% 40% 50% 60% 70% 80%Portfolio ACWI *Specific to the security - does not represent performance in the portfolio. City of Cupertino ▎ 1929 Client CONFIDENTIAL Custom Benchmark ActualTargetRangeBenchmarkAsset Class 64.9%63%50%-70%MSCI ACWI Index (net)Equities 27.1%29%20%-40%BBARC US Aggregate Bond IndexFixed Income 4.7%5%0%-15%S&P Global REIT TR USDReal Estate 0%2%0%-10%S&P GSCI Commodity IndexCommodities 3.3%1%0%-10%FTSE 3-Mo US T-Bill IndexCash CITY OF CUPERTINO PENSION City of Cupertino ▎ 2030 Selected Period Performance Period Ending: 12/31/2025PARS/CITY OF CUPERTINO 115P- PENSION (****059601) Year Inception to Date to Date Market Value (1 Year) 3 Months 1 Year 3 Years 5 Years 05/01/2019 Total Portfolio Gross of Fees 26,228,208 16.36 2.27 16.36 15.04 6.68 8.66 Total Portfolio Net of Fees 26,228,208 16.17 2.23 16.17 14.84 6.50 8.47 City of Cupertino 16.73 2.40 16.73 14.79 7.58 8.73 Total Equity 17,009,654 21.85 3.15 21.85 20.21 9.49 12.19 MSCI ACWI (Net)22.34 3.29 22.34 20.65 11.19 12.22 Russell 3000 Index 17.15 2.40 17.15 22.25 13.15 14.57 S&P 500 Index (Total Return)17.88 2.66 17.88 23.01 14.42 15.29 S&P MidCap 400 Index 7.50 1.64 7.50 12.56 9.12 9.78 S&P SmallCap 600 Index 6.02 1.70 6.02 10.17 7.31 8.07 MSCI EAFE Index (Net)31.22 4.86 31.22 17.22 8.92 9.07 MSCI Emerging Markets Index (Net)33.57 4.73 33.57 16.40 4.20 6.62 Total Fixed Income 7,132,119 7.36 1.04 7.36 5.54 .80 1.09 BBARC US Aggregate Bond Index 7.30 1.10 7.30 4.66 -.36 1.64 BBARC Global Aggregate Index 8.17 .24 8.17 3.98 -2.15 .40 Total Real Assets 1,224,697 2.64 -1.81 2.64 8.24 6.02 4.70 S&P Global REIT Index (Gross)8.88 -.55 8.88 8.06 5.02 3.80 S&P GSCI Index 7.12 .97 7.12 3.86 14.65 6.30 Total Cash Equivalents 861,738 4.21 .98 4.21 4.79 3.13 2.58 FTSE 3 Month Treasury Bill Index 4.40 1.02 4.40 5.03 3.31 2.78 Pending Cash 0 .00 .00 .00 .00 .00 .00 ▎ 2131 PARS/CITY OF CUPERTINO 115P- PENSION Portfolio Holdings Account: XXXXXX9601 Holdings Method: Direct Report Date: 12/31/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 12/31/2025 Symbol % of Port.Price Shares/ Units Portfolio Value Cost Basis Unrealized Gain/Loss Current Yield Projected Annual Income Total 100.0 26,200,150 22,632,403 3,567,747 2.97 777,645 Cash 3.28 859,455 859,455 0 3.68 31,657 Cash Equivalents 3.28 859,455 859,455 0 3.68 31,657 FIRST AM GOVT OB FD CL X 31846V336 3.28 1.00 859,455 859,455 859,455 0 3.68 31,657 Fixed Income 27.12 7,106,344 7,131,376 -25,032 4.14 294,002 Investment Grade 22.50 5,895,929 5,880,755 15,175 3.56 209,931 Mutual Funds & ETFs 22.50 5,895,929 5,880,755 15,175 3.56 209,931 Fidelity U.S. Bond Index Fund FXNAX 22.50 10.56 558,327 5,895,929 5,880,755 15,175 3.56 209,931 High Yield 4.62 1,210,415 1,250,622 -40,207 6.95 84,071 Mutual Funds & ETFs 4.62 1,210,415 1,250,622 -40,207 6.95 84,071 Artisan High Income Fund - Institutional Sh…APHFX 4.62 9.20 131,567 1,210,415 1,250,622 -40,207 6.95 84,071 Equity 64.92 17,009,654 13,413,077 3,596,577 2.44 414,853 Large Cap U.S. Equity 41.25 10,806,980 8,721,488 2,085,492 1.00 107,682 Mutual Funds & ETFs 41.25 10,806,980 8,721,488 2,085,492 1.00 107,682 iShares Russell 1000 ETF IWB 41.25 373.44 28,939 10,806,980 8,721,488 2,085,492 1.00 107,682 Small Cap U.S. Equity 2.30 603,327 453,131 150,195 2.17 13,069 Mutual Funds & ETFs 2.30 603,327 453,131 150,195 2.17 13,069 Fidelity Small Cap Index Fund FSSNX 2.30 30.93 19,506 603,327 453,131 150,195 2.17 13,069 Developed Markets Equity 15.67 4,106,775 3,178,510 928,265 6.31 258,970 Mutual Funds & ETFs 15.67 4,106,775 3,178,510 928,265 6.31 258,970 Fidelity International Index Fund FSPSX 15.67 60.80 67,546 4,106,775 3,178,510 928,265 6.31 258,970 Emerging Markets Equity 5.70 1,492,572 1,059,948 432,625 2.35 35,132 Mutual Funds & ETFs 5.70 1,492,572 1,059,948 432,625 2.35 35,132 Fidelity Emerging Markets Index Fund FPADX 5.70 13.68 109,106 1,492,572 1,059,948 432,625 2.35 35,132 Real Assets 4.67 1,224,697 1,228,495 -3,798 3.03 37,132 U.S. Listed Real Estate 4.67 1,224,697 1,228,495 -3,798 3.03 37,132 iShares Core U.S. REIT ETF USRT 4.67 56.96 21,501 1,224,697 1,228,495 -3,798 3.03 37,132 City of Cupertino ▎ 2232 Client CONFIDENTIAL Investment Policies Provided by U.S Bank 33 1 | P a g e Other Post- Employment Benefits (OPEB) Investment Policy Citywide Policy Manual Attachments: N/A Effective Date: December 3, 2024 Responsible Department: Administrative Services Related Policies & Notes: City Investment Policy, Pension Investment Policy Overview In response to the Government Accounting Standards Board (GASB) Statement No. 45, replaced by GASB Statement No. 74 and GASB Statement No. 75, new disclosure requirements for Other Post-employment Benefit (OPEB) Plans, the City of Cupertino has adopted a Section 115 Trust and Plan that seeks to satisfy these liabilities for certain eligible employees Executive Summary Account Name: City of Cupertino OPEB Trust Account Number: 6746035000 Investment Authority: Full Investment Authority Current Assets: $40.7 million (September 2024) Time Horizon: Long-Term Target Rate of Return: 6.5% Communication Schedule: Meetings will be conducted at least quarterly U.S. Bank Portfolio Manager: Dennis Mullins Dennis.mullins@usbank.com 513-304-0398 U.S. Bank Relationship Manager : Ryan Maxey ryan.maxey@usbank.com 503-464-3789 City of Cupertino ▎ 2434 2 | P a g e Investment Objective: ‘Balanced’ This investment objective is designed to provide a moderate amount of current income with moderate growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended for investors with a long-term time horizon. The strategic asset allocation ranges and tactical targets for this objective are listed below: Investment Guidelines Overview This document defines the investment policy, guidelines and performance objectives applicable to the assets of The City of Cupertino’s OPEB Trust. The goal of this Policy is to create an investment framework within which the assets can be actively yet prudently managed. The purpose of this document is threefold. First, it will set forth an investment structure for managing the Portfolio assets. This structure is expected to produce an appropriate level of overall diversification and total investment return over the investment time horizon. Second, it will serve as to encourage effective communications between the organization and parties involved with investment management decisions. Third, these guidelines will provide a framework to measure ongoing investment performance. Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules, which state: “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” All applicable laws, rules and regulations from various local, state, federal and international political entities that may impact the Portfolio are to be adhered to. Asset Class Range Target Fixed Income 20-40% 29% Equities Real Estate 0-15% 5% Commodities 0-10% 2% Cash 0-10% 1% City of Cupertino ▎ 2535 3 | P a g e Diversification Your Portfolio Manager is responsible for maintaining the balance between the various asset classes based on the investment objective’s strategic asset allocation. As a general policy, the Investment Manager will maintain reasonable diversification at all times by asset class, credit quality, issuer, sector, industry, and country. The following parameters shall be adhered to in managing the portfolio: Fixed Income Assets The fixed income investments are to maintain intermediate-term average weighted duration, between three-seven years. At the time of purchase, no single fixed income issuer shall exceed 2% of the total market value of the Portfolio, with the exception of U.S. Treasury or Agency obligations. The direct high-yield portion shall constitute no more than 10% of the total market value of the Portfolio. Hedged fixed income positions shall constitute no more than 10% of the total market value of the Portfolio. Equity & Growth Assets The domestic equity investments are expected to be diversified at all times by size, industry, sector, and style (Large Cap, Mid Cap, and Small Cap). At the time of purchase, no individual equity security shall exceed 2% of the total market value of the Portfolio. The real estate investments shall be captured through the use of diversified mutual funds or ETFs investing in REITs; and shall constitute no more than 15% of the total market value of the Portfolio . The commodities investments shall be captured through the use of diversified mutual funds or ETFs; and shall constitute no more than 10% of the total market value of the Portfolio. Hedged equity positions shall constitute no more than 10% of the total market value of the Portfolio Permitted Asset Classes and Security Types Fixed Income & Cash Equivalent Investments: Domestic Certificates of Deposit (rated A-1/P-1 or better) Domestic Commercial Paper (rated A-1/P-1 or better) Floating Rate Notes Money Market Mutual Funds U.S. Treasury Bonds, Bills and Notes U.S. Agency (and Instrumentality) Discount Notes, Notes, and Bonds Treasury Inflation-Protected Securities (TIPS) Municipal Bonds and Notes Corporate Bonds Mortgage-Backed Bonds (MBS) City of Cupertino ▎ 2636 4 | P a g e Asset-Backed Bonds (ABS) High-Yield Bonds (rated B-/B3 or better) Dollar denominated Foreign Bonds and Notes Bond Mutual Funds Equity Investments: Common & Preferred Stocks American Depository Receipts (ADRs) Domestic and International Equity Mutual Funds (Open and Closed) Emerging Market Equity Funds or Exchange Traded Funds (ETFs) Alternative Investments: Commodities Mutual Funds or Exchange Traded Notes (ETNs) REIT Investment or Pooled Strategy or Fund of REITs Registered Hedge Funds or Hedge Fund of Funds Prohibited Asset Classes and Transactions The Investment Manager is prohibited from purchasing or holding any of the following types of investments: Partnerships unless investing in Master Limited Partnerships invested in a mutual fund and limited in scope and allocation of Portfolio based on asset class limitations of table above Letter stock and other unregistered securities; physical commodities or other commodity contracts; and short sales or margin transactions Investments in the equity securities of any company with a record of less than three years continuous operation, including the operation of any predecessor Investments for the purpose of exercising control of management Direct or indirect exposure to cryptocurrencies Leveraged securities, other than registered Hedged Equity and Hedged Fixed Income positions Duties and Responsibilities 1) CITY OF CUPERTINO AUDIT COMMITTEE a) Establish, approve, and maintain investment objectives, guidelines, and policies (including this Policy). b) Appoint Investment Managers who can be reasonably expected to adhere to the investment guidelines and meet the investment objectives as established. c) Monitor the investment performance of the Portfolio and compare actual investment performance relative to an appropriate benchmark index given the stated investment guidelines and objectives set forth in this Policy. d) Conduct a formal review of the Portfolio’s asset allocation, investment structure and performance annually or more frequently as the need arises. e) Periodically review the Portfolio performance against objectives. City of Cupertino ▎ 2737 5 | P a g e 2) CITY OF CUPERTINO CITY COUNCIL a) Adopt the Policy by resolution of the City Council on an annual basis. 3) PORTFOLIO MANAGER The Portfolio Manager will be responsible for carrying out the activities related to the Portfolio in accordance with the Policy including: a) Manage the day-to-day investment of Portfolio assets in accordance with the Policy guidelines and objectives included herein. b) Exercise full investment discretion and prudence in the selection and diversification of investments. c) Promptly bring to the attention of the City Treasurer or designee any investment that is subsequently downgraded and fails to meet the quality guidelines, along with a recommendation of retention or disposal. d) Provide on a quarterly basis the following investment reporting: (i) Year-to-date rate of return (ii) Annualized one, three, five, etc. rates of return e) Provide annually to the City’s Audit Committee a commentary and analysis of investment performance to include an evaluation of the current and future investment environment and potential impact of the investment environment on achievement of investment objectives. Investment Policy Statement Review The City’s Audit Committee will review and the Cupertino City Council will adopt this Investment Policy Statement at least annually to determine whether stated investment objectives are still relevant and the continued feasibility of achieving the same. It is not expected that the Policy will change frequently. In particular, short-term changes in the financial markets should not require adjustments to the Policy. If at any time the Portfolio Manager finds the above guidelines too restrictive or possibly injurious to investment returns, they should communicate that information immediately to the City’s Audit Committee. City Manager’s signature: _______________________________ Date: _______________________________ City of Cupertino ▎ 2838 6 | P a g e Revisions: 6.5.2018, 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023, 12.03.2024 Director of Administrative Services’ signature: _______________________________ Date: _______________________________ City of Cupertino ▎ 2939 1 | P a g e Pension Trust Investment Policy Citywide Policy Manual Attachments: N/A Effective Date: December 3, 2024 Responsible Department: Administrative Services Related Policies & Notes: N/A Investment Policy Statement Overview The City has established a Section 115 Trust with PARS to assist in stabilizing the potential impact of pension cost volatility on the City’s operating budget. The City intends to use the Section 115 Trust to pre-fund pension costs and proactively address the unfunded liability. The City’s goal is to have sufficient assets in the trust to increase the funded status to over 80% within 20 years, as well as fund the difference between a 7.0% and 6.25% discount rate. Executive Summary Account Name: City of Cupertino Pension Trust Account Number: 6746050100 Investment Authority: Full Investment Authority Current Assets: $23.0 Million (September 2024) Time Horizon: Long-Term Target Rate of Return: 6.25% Communication Schedule: Meetings will be conducted at least quarterly U.S. Bank Portfolio Manager: Dennis Mullins Dennis.mullins@usbank.com 513-304-0398 U.S. Bank Relationship Manager : Ryan Maxey ryan.maxey@usbank.com 503-464-3789 City of Cupertino ▎ 3040 2 | P a g e Investment Objective: ‘Balanced’ This investment objective is designed to provide a moderate amount of current income with moderate growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended for investors with a long-term time horizon. The strategic asset allocation ranges and tactical targets for this objective are listed below: Investment Guidelines Overview This document defines the investment policy, guidelines and performance objectives applicable to the assets of The City of Cupertino’s Pension Trust. The goal of this Policy is to create an investment framework within which the assets can be actively yet prudently managed. The purpose of this document is threefold. First, it will set forth an investment structure for managing the Portfolio assets. This structure is expected to produce an appropriate level of overall diversification and total investment return over the investment time horizon. Second, it will serve as to encourage effective communications between the organization and parties involved with investment management decisions. Third, these guidelines will provide a framework to measure ongoing investment performance. Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules, which state: “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” All applicable laws, rules and regulations from various local, state, federal and international political entities that may impact the Portfolio are to be adhered to. Asset Class Range Benchmark Target Fixed Income 20-40% 29% Equities 50-70% 63% Real Estate Commodities 0-10% 2% Cash 0-10% 1% City of Cupertino ▎ 3141 3 | P a g e Diversification Your Portfolio Manager is responsible for maintaining the balance between the various asset classes based on the investment objective’s strategic asset allocation. As a general policy, the Investment Manager will maintain reasonable diversification at all times by asset class, credit quality, issuer, sector, industry, and country. The following parameters shall be adhered to in managing the portfolio: Fixed Income Assets The fixed income investments are to maintain intermediate-term average weighted duration, between three-seven years. At the time of purchase, no single fixed income issuer shall exceed 2% of the total market value of the Portfolio, with the exception of U.S. Treasury or Agency obligations. The direct high-yield portion shall constitute no more than 10% of the total market value of the Portfolio. Hedged fixed income positions shall constitute no more than 10% of the total market value of the Portfolio Equity & Growth Assets The domestic equity investments are expected to be diversified at all times by size, industry, sector, and style (Large Cap, Mid Cap, and Small Cap). At the time of purchase, no individual equity security shall exceed 2% of the total market value of the Portfolio. The real estate investments shall be captured through the use of diversified mutual funds or ETFs investing in REITs; and shall constitute no more than 15% of the total market value of the Portfolio . The commodities investments shall be captured through the use of diversified mutual funds or ETFs; and shall constitute no more than 10% of the total market value of the Portfolio. Hedged equity positions shall constitute no more than 10% of the total market value of the Portfolio Permitted Asset Classes and Security Types Fixed Income & Cash Equivalent Investments: Domestic Certificates of Deposit (rated A-1/P-1 or better) Domestic Commercial Paper (rated A-1/P-1 or better) Floating Rate Notes Money Market Mutual Funds U.S. Treasury Bonds, Bills and Notes U.S. Agency (and Instrumentality) Discount Notes, Notes, and Bonds Treasury Inflation-Protected Securities (TIPS) Municipal Bonds and Notes Corporate Bonds Mortgage-Backed Bonds (MBS) City of Cupertino ▎ 3242 4 | P a g e Asset-Backed Bonds (ABS) High-Yield Bonds (rated B-/B3 or better) Dollar denominated Foreign Bonds and Notes Bond Mutual Funds Equity Investments: Common & Preferred Stocks American Depository Receipts (ADRs) Domestic and International Equity Mutual Funds (Open and Closed) Emerging Market Equity Funds or Exchange Traded Funds (ETFs) Alternative Investments: Commodities Mutual Funds or Exchange Traded Notes (ETNs) REIT Investment or Pooled Strategy or Fund of REITs Registered Hedge Funds or Hedge Fund of Funds Prohibited Asset Classes and Transactions The Investment Manager is prohibited from purchasing or holding any of the following types of investments: Partnerships unless investing in Master Limited Partnerships invested in a mutual fund and limited in scope and allocation of Portfolio based on asset class limitations of table above Letter stock and other unregistered securities; physical commodities or other commodity contracts; and short sales or margin transactions Investments in the equity securities of any company with a record of less than three years continuous operation, including the operation of any predecessor Investments for the purpose of exercising control of management Direct or indirect exposure to cryptocurrencies Leveraged securities, other than registered Hedged Equity and Hedged Fixed Income positions Duties and Responsibilities 1) CITY OF CUPERTINO AUDIT COMMITTEE a) Establish, approve, and maintain investment objectives, guidelines, and policies (including this Policy). b) Appoint Investment Managers who can be reasonably expected to adhere to the investment guidelines and meet the investment objectives as established. c) Monitor the investment performance of the Portfolio and compare actual investment performance relative to an appropriate benchmark index given the stated investment guidelines and objectives set forth in this Policy. d) Conduct a formal review of the Portfolio’s asset allocation, investment structure and performance annually or more frequently as the need arises. e) Periodically review the Portfolio performance against objectives. City of Cupertino ▎ 3343 5 | P a g e 2) CITY OF CUPERTINO CITY COUNCIL a) Adopt the Policy by resolution of the City Council on an annual basis. 3) PORTFOLIO MANAGER The Portfolio Manager will be responsible for carrying out the activities related to the Portfolio in accordance with the Policy including: a) Manage the day-to-day investment of Portfolio assets in accordance with the Policy guidelines and objectives included herein. b) Exercise full investment discretion and prudence in the selection and diversification of investments. c) Promptly bring to the attention of the City Treasurer or designee any investment that is subsequently downgraded and fails to meet the quality guidelines, along with a recommendation of retention or disposal. d) Provide on a quarterly basis the following investment reporting: (i) Year-to-date rate of return (ii) Annualized one, three, five, etc. rates of return e) Provide annually to the City’s Audit Committee a commentary and analysis of investment performance to include an evaluation of the current and future investment environment and potential impact of the investment environment on achievement of investment objectives. Investment Policy Statement Review The City’s Audit Committee will review and the Cupertino City Council will adopt this Investment Policy Statement at least annually to determine whether stated investment objectives are still relevant and the continued feasibility of achieving the same. It is not expected that the Policy will change frequently. In particular, short-term changes in the financial markets should not require adjustments to the Policy. If at any time the Portfolio Manager finds the above guidelines too restrictive or possibly injurious to investment returns, they should communicate that information immediately to the City’s Audit Committee. City Manager’s signature: _______________________________ Date: _______________________________ City of Cupertino ▎ 3444 6 | P a g e Revisions: 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023, 12.03.2024 Director of Administrative Services’ signature: _______________________________ Date: _______________________________ City of Cupertino ▎ 3545 Client CONFIDENTIAL Market Review Provided by Sub-Advisor - PFM Asset Management 46 PFM Asset Management is a division of U.S. Bancorp Asset Management, Inc. | For Institutional Investor or Investment Professional Use Only This material is not for inspection by, distribution to, or quotation to the general public. U.S. Equity •Domestic equity markets, as represented by the S&P 500 Index (S&P) and the Russell 3000 Index, returned 0.06% and -0.02% respectively in December.1 •Five of the 11 sectors saw positive returns for the month. The Financials sector was the best performing sector, returning 3.07% for the month, followed by Materials at 2.22%. The Utilities sector was the worst performing sector, returning -5.12% in December. •Mid-caps (Russell Mid Cap Index) and small-caps (Russell 2000 Index) saw marginally negative returns in December returning -0.28% and -0.58% respectively, while large caps (Russell 1000 Index) were flat, returning 0.00%. Value outperformed growth across all capitalizations during the month. •According to FactSet Earnings Insight as of December 22, 2025, the estimated earnings growth rate for the S&P 500 for Q4 2025 is 8.3%, which would mark the tenth consecutive quarter of earnings growth and contribute to an estimated growth rate of 12.3% for calendar year 2025. For calendar year 2026, analysts currently expect a third consecutive year of double-digit earnings growth, at 15.0%. Non-U.S. Equity •Non-U.S. equity markets, represented by the MSCI ACWI ex-U.S. Index returned 3.0% in December. Developed markets, represented by the MSCI EAFE Index returned 3.0% as Europe (MSCI Europe) returned 3.90% and Japan (MSCI Japan) returned 0.54%. Emerging markets (EM), as represented by the MSCI Emerging Markets Index, returned 2.99% as negative returns in Chinese equities (MSCI China Index) of -1.24% were counterbalanced by strongly positive returns from Korea and Taiwan, at 12.70% and 5.81% respectively. •Within the ACWI ex-U.S. Index, eight of the 11 sectors posted positive returns. Materials was the best performing sector for the month, returning 5.71%, while the Information Technology sector was the second-best performer, returning 5.62%. Communications Services was the worst performing sector, posting a return of -1.72%. Fixed Income •In December, the Treasury yield curve steepened as the Federal Reserve (Fed) cut rates, prompting short term rates to fall while longer term yields rose. The 2-year yield fell 1 basis point (bp) while the 5-year rose 13 bps. The yield on the 10- year and 30-year rose 15 bps and 19 bps respectively. •The Bloomberg U.S. Aggregate Index returned -0.15% in December. Investment-grade (IG) credit returned -0.19%, AAA-rated bonds returned -0.14%, AA-rated bonds returned -0.50%, A-rated bonds returned -0.23% and BBB-rated bonds returned -0.09%. High-yield corporates, as represented by ICE BofA U.S. High Yield Index returned 0.65% during the month, while the Broad Treasury Index returned -0.51%. Spreads narrowed slightly across the corporate credit spectrum. Listed Real Assets •During December, real estate investment trusts (REITs), as represented by the MSCI U.S. REIT Index and the FTSE NAREIT Index returned -2.54% and -2.31% respectively. The Lodging/Resorts sector saw the strongest performance for the month while the Healthcare sector stood as the most challenged. Listed Infrastructure, represented by the MSCI World Core Infrastructure Index, returned -1.18% for the month. Items to Watch •The Fed cut rates as expected in December, bringing the new federal funds target range to 3.50%-3.75%, as labor data continued to soften. The December meeting also produced an updated summary of economic growth projections. Compared to the September projections, this estimate included an increase in projected economic growth, no change to unemployment rate expectations, and a decrease in projected inflation for 2026, pointing to increased optimism for the economy. The dot plot for 2026 reflects an expectation of one cut in 2026, though the timing of such a move is uncertain. The composition of the Fed is also about to change, with four new regional presidents rotating into voting roles in 2026. •U.S. military action in Venezuela adds to the ongoing geopolitical risks, prompting increased uncertainty as the possible implications for the market are weighed. Venezuela’s oil reserves, and their relationship to China, its primary oil buyer, are of particular interest. In the short term the impact on energy prices is expected to be relatively minimal, while the longer-term impacts depend on the future of Venezuela’s energy infrastructure and who controls it. Sources •Bloomberg •FactSet 1 - All returns are expressed as total returns (price returns net of dividends). Multi-Asset Class | January 2026 Monthly Market Review City of Cupertino ▎ 3747 PFM Asset Management is a division of U.S. Bancorp Asset Management, Inc. | For Institutional Investor or Investment Professional Use Only This material is not for inspection by, distribution to, or quotation to the general public. Total Return of Major Indices Domestic Equity MTD QTD YTD 1 YR S&P 500 0.06%2.65%17.86%17.86% Russell 3000 -0.02%2.40%17.13%17.13% Russell 2000 -0.58%2.19%12.79%12.79% Russell 1000 0.00%2.41%17.35%17.35% International Equity MTD QTD YTD 1 YR MSCI ACWI ex-U.S.3.00%5.05%32.39%32.39% MSCI EAFE 3.00%4.86%31.22%31.22% MSCI Emerging Markets 2.99%4.73%33.57%33.57% Fixed Income MTD QTD YTD 1 YR Bloomberg U.S. Agg -0.15%1.10%7.30%7.30% Bloomberg Global Agg 0.26%0.24%8.17%8.17% ICE BofA U.S. HY 0.65%1.35%8.50%8.50% Listed Real Assets MTD QTD YTD 1 YR MSCI U.S. REIT -2.54%-1.99%1.68%1.68% FTSE NAREIT Index -2.31%-1.56%2.88%2.88% MSCI World Core Infrastructure -1.18%0.32%15.85%15.85% Economic Indicators Domestic Current Previous Month Unemployment Rate (%)4.6%4.4% Initial Jobless Claims (4 week avg)218.8 K 217 K CB Leading Economic Indicators -0.3 -0.3 Capacity Utilization 75.9%76.0% GDP (annual growth rate)4.3%3.8% University of Michigan Consumer Confidence 52.9 51.0 New Home Starts 800 K 664 K Existing Home Sales 4.1 MM 4.1 MM Retail Sales (YoY)3.5%4.2% U.S. Durable Goods (MoM)-2.2%0.7% Consumer Price Index (YoY)2.7%3.0% Producer Price Index (MoM)1.2%0.1% Developed International*9/30/2025 6/30/2025 Market GDP (ann'l rate)1.3%1.6% Market Unemployment 5.0%4.8% 3.48%3.73% 4.17% 4.85% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% U.S. Treasury Yield Curve 12/31/2024 11/30/2025 12/31/2025 3-mo 2-yr 5-yr 10-yr 30- 8 13 18 23 28 33 Dec '20 Dec '21 Dec '22 Dec '23 Dec '24 Dec '25 P/E Ratios of Major Stock Indices** S&P 500 S&P 500 5-Year Average Russell 2000 Russell 2000 5-Year Average MSCI ACWI ex-U.S.MSCI ACWI ex-U.S. 5-Year Average Cons. Disc. Cons. Staples Energy Financial H'lthcar e Industria l Info. Tech Material s Real Estate Telecom Utilities MTD 0.79%-1.59%0.20% 3.07%-1.36%1.25%-0.25%2.22%-2.19% -0.98% -5.12% QTD 0.71% 0.01% 1.53% 2.01%11.68%0.86% 1.42% 1.12%-2.87%7.26%-1.40% YTD 6.04% 3.90% 8.68%14.97% 14.60% 19.27% 24.04% 10.54%3.15%33.56% 16.04% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% Stock Market Sector Performance (S&P 500) Source: Bloomberg. Data as of December 31, 2025, unless otherwise noted. *Developed market data is calculated with respect to the weightings in the MSCI World ex-U.S. Index. Most current data is as of September 30, 2025 due to release dates of numerous countries. **P/E ratios are calculated based on one-year-forward estimates and adjusted to include only positive earning results for consistency. Indices shown are not available for investment. The index data reference herein is the property of the index provider and/or its licensors. The index provider assumes no liability in connections with its use and does not sponsor, endorse or recommend the products or services contained herein. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be lower than the performance shown. The views expressed within this material constitute the perspective and judgment of U.S. Bancorp Asset Management, Inc. at the time of distribution and are subject to change. Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon current opinion as of the date of issue and are also subject to change. Opinions and data presented are not necessarily indicative of future events or expected performance. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. No representation is made as to its accuracy or completeness. PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset Management, Inc., which is the legal entity providing investment advisory services. U.S. Bancorp Asset Management, Inc. is a registered investment adviser, a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S. Bank N.A. is not responsi-ble for and does not guarantee the products, services, or performance of U.S. Bancorp Asset Management, Inc. NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE City of Cupertino ▎ 38 48 Client CONFIDENTIAL Important disclosures, definitions of terms and index descriptions Provided by U.S. Bank If you have questions regarding this information or wish to receive definitions of any additional terms or indexes used in this report, please contact your team. 49 Client CONFIDENTIAL Important disclosures (page 1 of 4) The information provided here is not intended to replace your account statement. Your account statement is the official record of your account. Equal Housing Lender. Credit products are offered by U.S. Bank National Association and subject to normal credit approval. Deposit products offered by U.S. Bank National Association. Member FDIC. For use in one-on-one meetings/presentations. This information represents the opinion of U.S. Bank. The views are subject to change at any time based on market or other conditions and are current as of the date indicated on the materials. This is not intended to be a forecast of future events or guarantee of future results. The factual information provided has been obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. U.S. Bank and its representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation. Past performance is no guarantee of future results. All performance data, while obtained from sources deemed to be reliable, are not guaranteed for accuracy. Indexes shown are unmanaged and are not available for direct investment, nor are they subject to fees and expenses. Performance reports included may show performance results gross of fees and expenses. If fees and expenses were included, the performance would be lower. If you have any questions, please speak with your relationship manager for additional information. Based on our strategic approach to creating diversified portfolios, guidelines are in place concerning the construction of portfolios and how investments should be allocated to specific asset classes based on client goals, objectives and tolerance for risk. Not all recommended asset classes will be suitable for every portfolio. Diversification and asset allocation do not guarantee returns or protect against losses. City of Cupertino ▎ 4050 Client CONFIDENTIAL Important disclosures (page 2 of 4) Equity securities are subject to stock market fluctuations that occur in response to economic and business developments. Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies and may be expected to do so in the future. Stocks of mid-capitalization companies can be expected to be slightly less volatile than those of small-capitalization companies, but still involve substantial risk and may be subject to more abrupt or erratic movements than large-capitalization companies. The value of large-capitalization stocks will rise and fall in response to the activities of the company that issued them, general market conditions and/or economic conditions. Growth investments focus on stocks of companies whose earnings/profitability are accelerating in the short term or have grown consistently over the long term. Such investments may provide minimal dividends, which could otherwise cushion stock prices in a market decline. Stock value may rise and fall significantly based, in part, on investors' perceptions of the company, rather than on fundamental analysis of the stocks. Investors should carefully consider the additional risks involved in growth investments. Value investments focus on stocks of income-producing companies whose price is low relative to one or more valuation factors, such as earnings or book value. Such investments are subject to risks that their intrinsic values may never be realized by the market, or such stocks may turn out not to have been undervalued. Investors should carefully consider the additional risks involved in value investments. International investing involves special risks, including foreign taxation, currency risks, risks associated with possible differences in financial standards and other risks associated with future political and economic developments. Investing in emerging markets may involve greater risks than investing in more developed countries. In addition, concentration of investments in a single region may result in greater volatility. Investments in real estate securities can be subject to fluctuations in the value of the underlying properties, the effect of economic conditions on real estate values, changes in interest rates and risks related to renting properties (such as rental defaults). There are special risks associated with an investment in commodities, including market price fluctuations, regulatory changes, interest rate changes, credit risk, economic changes and the impact of adverse political or financial factors. Investments in fixed income securities are subject to various risks, including changes in interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Investment in fixed income securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term securities. Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Investments in high yield bonds offer the potential for high current income and attractive total return, but involve certain risks. Changes in economic conditions or other circumstances may adversely affect a bond issuer's ability to make principal and interest payments. City of Cupertino ▎ 4151 Client CONFIDENTIAL Important disclosures (page 3 of 4) The municipal bond market is volatile and can be significantly affected by adverse tax, legislative or political changes and the financial condition of the issues of municipal securities. Interest rate increases can cause the price of a bond to decrease. Income on municipal bonds is free from federal taxes, but may be subject to the federal alternative minimum tax (AMT), state and local taxes. Treasury Inflation-Protected Securities (TIPS)offer a lower return compared to other similar investments and the principal value may increase or decrease with the rate of inflation. Gains in principal are taxable in that year, even though not paid out until maturity. Non-financial specialty assets, such as real estate, farm, ranch and timber properties, oil, gas and mineral interests or closely-held business interests are complex and involve unique risks specific to each asset type, including the total loss of value. Special risk considerations may include natural events or disasters, complex tax considerations and lack of liquidity. Specialty assets may not be suitable for all investors. Alternative investments very often use speculative investment and trading strategies. There is no guarantee that the investment program will be successful. Alternative investments are designed only for investors who are able to tolerate the full loss of an investment. These products are not suitable for every investor even if the investor does meet the financial requirements. It is important to consult with your investment professional to determine how these investments might fit your asset allocation, risk profile and tax situation. Hedge funds are speculative and involve a high degree of risk. An investment in a hedge fund involves a substantially more complicated set of risk factors than traditional investments in stocks or bonds, including the risks of using derivatives, leverage and short sales, which can magnify potential losses or gains. Restrictions exist on the ability to redeem or transfer interests in a fund. Exchange-traded funds (ETFs)are baskets of securities that are traded on an exchange like individual stocks at negotiated prices and are not individually redeemable. ETFs are designed to generally track a market index and shares may trade at a premium or a discount to the net asset value of the underlying securities. Private equity investments provide investors and funds the potential to invest directly into private companies or participate in buyouts of public companies that result in a delisting of the public equity. Investors considering an investment in private equity must be fully aware that these investments are illiquid by nature, typically represent a long-term binding commitment and are not readily marketable. The valuation procedures for these holdings are often subjective in nature. Private debt investments may be either direct or indirect and are subject to significant risks, including the possibility of default, limited liquidity and the infrequent availability of independent credit ratings for private companies. Structured products are subject to market risk and/or principal loss if sold prior to maturity or if the issuer defaults on the security. Investors should request and review copies of Structured Products Pricing Supplements and Prospectuses prior to approving or directing an investment in these securities. City of Cupertino ▎ 4252 Client CONFIDENTIAL Important disclosures (page 4 of 4) Mutual fund investing involves risk and principal loss is possible. Investing in certain funds involves special risks, such as those related to investments in small- and mid-capitalization stocks, foreign, debt and high-yield securities and funds that focus their investments in a particular industry. Please refer to the fund prospectus for additional details pertaining to these risks. An investment in money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although these funds seek to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in these funds. Holdings of First American Funds: U.S. Bancorp Asset Management, Inc. is a registered investment advisor and subsidiary of U.S. Bank National Association. U.S. Bank National Association is a separate entity and wholly owned subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, performance or services of U.S. Bancorp Asset Management. U.S. Bancorp Asset Management, Inc. serves as an investment advisor to First American Funds. Holdings of Nuveen mutual funds: Firstar Capital Corporation (Firstar Capital), an affiliate of U.S. Bancorp, holds a less-than-10 percent ownership interest in Windy City Investments Holdings, LLC which was formerly the parent of Windy City Investment Inc. and the indirect parent of Nuveen Fund Advisors, LLC which is the investment advisor to the Nuveen Mutual Funds. On October 1, 2014, Windy City Investments, Inc. was sold to Teachers Insurance and Annuity Association of America. As a result of the sale, U.S. Bancorp no longer has an indirect ownership interest in Nuveen Fund Advisors, LLC. Depending on the outcome of certain factors, Firstar Capital might in the future receive an earn-out payment in respect of its interest in Windy City Investment Holdings, LLC, under the terms of the sale. Non- proprietary mutual funds: U.S. Bank may enter into agreements with other non-proprietary mutual funds or their service providers whereby U.S. Bank provides shareholder services and/or sub-transfer agency, custodial and other administrative support services and receives compensation for these services. Compensation received by U.S. Bank directly or indirectly from mutual funds does not increase fund fees and expenses beyond what is disclosed in the fund prospectuses. For more information, review the fund prospectus. City of Cupertino ▎ 4353 Client CONFIDENTIAL Definitions of report and statement terms (page 1 of 5) Accredited Investor: Private placement securities generally require that investors be accredited due to the additional risks and speculative nature of the securities. For natural persons, the criteria is met by a net worth of more than $1 million (excluding primary residence) or an income of more than $200,000 individually ($300,000 jointly) for the two most recent years and a reasonable expectation for the same in the current year. For other entities, such as corporations, partnerships, trusts and employee benefit plans, the criteria is met with at least $5 million in assets. See full definition in Rule 501 of Regulation D under the Securities Act of 1933. Alpha: A measure of risk-adjusted performance. A statistic measuring that portion of a stock, fund or composite's total return attributable to specific or non-market risk. Alpha measures non-market return and indicates how much value has been added or lost. A positive Alpha indicates the fund or composite has performed better than its Beta would predict (i.e., the manager has added value above the benchmark). A negative Alpha indicates a fund or composite has underperformed given the composite's Beta. Alternative Investments: As used by U.S. Bank, an investment considered to be outside of the traditional asset classes of long-only stocks, bonds and cash. Examples of alternative investments include hedge funds, private equity, options and financial derivatives. Annualized Excess Return: Shows the difference between the annualized linked returns of a portfolio and the model benchmark. Performance reports provided annualize only periods greater than one year. Annualized or Annual Rate of Return: Represents the average annual change in the value of an investment over the periods indicated. Batting Average: Shows how consistently the portfolio return met or beat the market. Beta: A measure of your portfolio's risk relative to a benchmark. A portfolio with a beta of 1.5, for example, would be expected to return roughly 1.5 times the benchmark's return. A high Beta indicates a riskier portfolio. Bond Credit Rating: A grade given to bonds by a private independent rating service that indicates their credit quality. Ratings are the opinion of Standard & Poor's or other agencies as noted and not the opinion of U.S. Bank. Consumer Price Index (CPI): A measure of the average change in prices over time in a market basket of goods and services and is one of the most frequently used statistics for identifying periods of inflation and deflation. Convexity to Stated Maturity: A measure of the curvature in the relationship between bond prices and bond yields that demonstrates how the duration of a bond changes as the interest rate changes. Convexity is used as a risk-management tool and helps to measure and manage the amount of market risk to which a portfolio of bonds is exposed. This version of convexity measures the rate change in duration of a bond as the yield to (stated) maturity changes. City of Cupertino ▎ 4454 Client CONFIDENTIAL Definitions of report and statement terms (page 2 of 5) Cost basis/book value: The original value of an asset at the time it was acquired. This is normally the purchase price or appraised value at the time of acquisition. This data is for information purposes only. Cumulative Excess Return: Shows the difference between the annualized linked returns of a portfolio and the model benchmark. Performance reports provided use unannualized returns in periods up to one year, but annualized returns for periods exceeding one year. Downside Capture: The downside capture ratio reflects how a portfolio compares to a benchmark during periods when the benchmark is down. A downside capture ratio of 0.80 (or 80 percent) means the portfolio has historically declined only 80 percent as much as the benchmark during down markets. Downside Deviation: The deviation of returns that fall below a minimum acceptable return (MAR). Although the numerator includes only returns below the MAR, the denominator includes all returns in the performance period. This risk statistic is similar to the downside standard deviation except the sum is restricted to returns less than the MAR instead of the mean. Downside Standard Deviation: The deviation of returns that fall below the mean return. Although the numerator includes only returns below the mean, the denominator includes all returns in the performance period. This risk statistic is similar to the downside deviation except the sum is restricted to returns less than the mean instead of the minimum acceptable return (MAR). Effective Maturity: The date of a bond’s most likely redemption, given current market conditions, taking into consideration the optional and mandatory calls, the optional, mandatory and recurring puts, and the stated maturity. Estimated annual income: The amount of income a particular asset is anticipated to earn over the period indicted. The shares multiplied by the annual income rate. Gain/loss calculation: If an asset was sold, the difference between the proceeds received from the sale compared to the cost of acquiring the asset. If the value of the proceeds is the higher of the two numbers, then a gain was realized. If the value of the proceeds is the lower of the two numbers, a loss was incurred. This data is for information purposes only. Information Ratio: The information ratio compares the average excess return of the portfolio over its associated benchmark divided by the tracking error. M-Squared: The hypothetical return of the portfolio after its risk has been adjusted to match a benchmark. City of Cupertino ▎ 4555 Client CONFIDENTIAL Definitions of report and statement terms (page 3 of 5) Market Value: Publicly traded assets are valued using market quotations or valuation methods from financial industry services believed by us to be reliable. Assets, that are not publicly traded, may be reflected at values from other external sources or special valuations prepared by us. Assets for which a current value is not available may be reflected as not valued, at par value, or at a nominal value. Values shown do not necessarily reflect prices at which assets could have been bought or sold. Values are updated based on internal policy and may be updated less frequently than statement generation. Market Value Over Time: Many factors can impact the portfolio value over time, such as contributions to the account, distributions from the account, the investment of dividends and interest, the deduction of fees and expenses, and market performance. Modified Duration to Effective Maturity: A formula that expresses the measurable change in the value of a security in response to a change in interest rates. This version of Modified Duration takes into consideration a “horizon date/price” that is, given current conditions, the most likely redemption date/price using the set of calls/puts, as well as stated maturity. Modified Duration to Stated Maturity: A formula that expresses the measurable change in the value of a security in response to a change in interest rates. This version of Modified Duration uses stated maturity as the “horizon date/price” and ignores any potential call/put/pre- refunding, even if they are mandatory. Price/Earnings Ratio (P/E): The P/E ratio of a company is calculated by dividing the price of the company’s stock by its trailing 12-month earnings per share. A high P/E usually indicates that the market is paying a premium for current earnings because it believes in the firm’s ability to grow its earnings. A low P/E indicates the market has less confidence that the company’s earnings will increase. Within a portfolio, P/E is the weighted average of the price/earnings ratios of the stocks in the portfolio. Qualified Purchaser: Some private placement securities require that investors be Qualified Purchasers in addition to being Accredited Investors. For natural persons, the criteria is generally met when the client (individually or jointly) owns at least $5 million in investments. For other entities, such as corporations, partnerships, trusts and employee benefit plans, the criteria is met with at least $25 million in investments though there are other eligibility tests that may apply. See full definition in Section 2(a)(51) of the Investment Company Act of 1940. R-Squared: Measures the portion of the risk in your portfolio that can be attributed to the risk in the benchmark. Realized and Unrealized Gains/Losses: Are calculated for individual tax lots based on the records we have available. Some data may be incomplete or differ from what you are required to report on your tax return. Some data used in these calculations may have been obtained from outside sources and cannot be verified by U.S. Bank. The data is intended for informational purposes only and should not be used for tax reporting purposes. Please consult with your tax or legal advisor for questions concerning your personal tax or financial situation. City of Cupertino ▎ 4656 Client CONFIDENTIAL Definitions of report and statement terms (page 4 of 5) Residual Risk: The amount of risk specific to the assets in a portfolio distinct from the market, represented by a benchmark. Return: An indication of the past performance of your portfolio. Sharpe Ratio: Measures of risk-adjusted return that calculates the return per unit of risk, where risk is the Standard Deviation of your portfolio. A high Sharpe ratio indicates that the portfolio is benefiting from taking risk. Sortino Ratio: Intended to differentiate between good and bad volatility. Similar to the Sharpe ratio, except it uses downside deviation for the denominator instead of standard deviation, the use of which doesn't discriminate between up and down volatility. Spread: The difference between the yields of two bonds with differing credit ratings (most often, a corporate bond with a certain amount of risk is compared to a standard traditionally lower risk Treasury bond). The bond spread will show the additional yield that could be earned from a bond which has a higher risk. Standard Deviation: A measure of the volatility and risk of your portfolio. A low standard deviation indicates a portfolio with less volatile returns and therefore less inherent risk. Time-weighted Return: The method used to calculate performance. Time-weighted return calculates period by period returns that negates the effect of external cash flows. Returns for periods of greater than one year are reported as an annualized (annual) rate of return. Returns of less than one year are reported on a cumulative return basis. Cumulative return is the aggregate amount an investment has gained or lost over time, independent of the period involved. Tracking Error: A divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. This is often in the context of a hedge or mutual fund that did not work as effectively as intended, creating an unexpected profit or loss instead. Traditional Investments: As used by U.S. Bank, an investment made in equity, fixed income or cash securities, mutual funds or exchange- traded funds (ETFs) where the investor buys at a price with the goal that the investment will go up in value. Top 10 Holdings: The 10 assets with the highest market values in the account. Total Portfolio Gross of Fees: Represents all assets included in the calculation of the portfolio, before the deduction of trust and asset management fees, and is inclusive of all applicable third-party security fees and expenses. Details of those fees and expenses are provided in the security’s prospectus or offering documents. City of Cupertino ▎ 4757 Client CONFIDENTIAL Definitions of report and statement terms (page 5 of 5) Total Return: The rate of return that includes the realized and unrealized gains and losses plus income for the measurement period. Treynor Ratio: Measures the performance of a sector relative to risk by dividing the return of the sector in excess of the risk-free return by the sector's Beta. The higher the Treynor ratio, the better the return relative to risk. Turnover Percent: Indicates how frequently asset are bought and sold within a portfolio. Turnover Ratio: The percentage of a mutual fund’s or other investment vehicle's holdings that have been "turned over" or replaced with other holdings in a given year. Unrealized gain (loss)— The difference between the current market value (at the end of the statement period) and the cost to acquire the asset. If the current market value is higher than the cost, a gain is reflected. If the current market value is lower than the cost paid, a loss is reflected. This data is for information purposes only. Upside Capture: The upside capture ratio reflects how a portfolio compares to the selected model benchmark during periods when the benchmark is up. An upside capture ratio of 1.15 (or 115 percent) means the portfolio has historically beat the benchmark by 15 percent during up markets. Yield: The annual rate of return on an investment, expressed as a percentage. For bonds, it is the coupon rate divided by the market price. For stocks, it is the annual dividend divided by the market price. City of Cupertino ▎ 4858 Client CONFIDENTIAL Frequently used indexes (page 1 of 5) Bloomberg Barclays 1-3 year U.S. Treasury Index: Measures the performance of the U.S. government bond market and includes public obligations of the U.S. Treasury with a maturity between one year and up to (but not including) three years. Bloomberg Barclays 1-5 year U.S. Treasury Index: Includes all publicly issued, U.S. Treasury securities that have a remaining maturity of greater than or equal to one year and less than five years, are rated investment grade and have $250 million or more of outstanding face value. The Bloomberg Barclays 1-5 year Municipal Index: Measures the performance of municipal bonds with time to maturity of more than one year and less than five years. Bloomberg Barclays 7-year Municipal Index: Includes municipal bonds with a minimum credit rating of Baa that have been issued as part of a transaction of at least $50 million, have a maturity value of at least $5 million and a maturity range of four to six years. Bloomberg Barclays Global Aggregate Index ex-U.S. Index: Measure of global investment grade debt from 24 local currency markets. This multi-currency benchmark includes Treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers. Bloomberg Barclays Global Treasury ex-U.S. Index: Includes government bonds issued by investment-grade counties outside the United States, in local currencies, that have a remaining maturity of one year or more and are rated investment grade. Bloomberg Barclays High Yield Municipal Bond Index: An unmanaged index made up of bonds that are non-investment grade, unrated or below Ba1 bonds. Bloomberg Barclays Intermediate Aggregate Index: Consists of one- to 10-year governments, one- to 10-year corporate bonds, all mortgages and all asset-backed securities within the Aggregate Index. Bloomberg Barclays Mortgage-Backed Securities Index: Covers agency mortgage-backed pass-through securities (both fixed-rate and hybrid adjustable-rate mortgages) issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). Bloomberg Barclays U.S. Aggregate Bond Index: Measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. Bloomberg Barclays U.S. Corporate Bond Index: Measures the investment grade, fixed-rate, taxable corporate bond market and includes U.S. dollar-denominated securities publicly issued by U.S. and non-U.S. industrial, utility and financial issuers. City of Cupertino ▎ 4959 Client CONFIDENTIAL Frequently used indexes (page 2 of 5) Bloomberg Barclays U.S. Corporate High Yield Bond Index: Measures the U.S. dollar denominated, high yield, fixed-rate corporate bond market. Bloomberg Barclays U.S. Municipal Bond Index: Measures the investment grade, U.S. dollar-denominated, fixed tax-exempt bond market. The index includes state and local general obligation, revenue, insured and pre-refunded bonds. Bloomberg Barclays U.S. Treasury Index: Measures U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury. Bloomberg Barclays U.S. Treasury Inflation-Protected Securities (TIPS) Index: An unmanaged index includes all publicly issued, U.S. TIPS that have at least one year remaining to maturity, are rated investment grade, and have $250 million or more of outstanding face value. Cambridge U.S. Private Equity Index: This index is based on returns data compiled for U.S. private equity funds (including buyout, growth equity and mezzanine funds) that represent the majority of institutional capital raised by private equity partnerships formed since 1986. Returns may be delayed by up to six months. Quarterly performance is prorated based on the cube root for the months of the quarter. Citigroup 3-Month Treasury Bills: An unmanaged index and represents monthly return equivalents of yield averages of the last three- month Treasury Bill issues. Citigroup 6-Month Treasury Bills: An unmanaged index and represents monthly return equivalents of yield averages of the last six- month Treasury Bill issues. Credit Suisse Leverage Loan Index: Represents tradable, senior-secured, U.S. dollar-denominated non-investment grade loans. Dow Jones Industrial Average (DJIA): The price-weighted average of 30 significant U.S. stocks traded on the New York Stock Exchange and NASDAQ. The DJIA is the oldest and single most watched index in the world. Dow Jones Select REIT Index: Measures the performance of publicly traded REITs and REIT-like securities in the U.S. and is a proxy for direct real estate investment, in part by excluding companies whose performance may be driven by factors other than the value of real estate. HFRI Indices: The Hedge Fund Research, Inc. (HFRI) indexes are a series of benchmarks designed to reflect hedge fund industry performance by constructing composites of constituent funds, as reported by the hedge fund managers listed within the HFR Database. City of Cupertino ▎ 5060 Client CONFIDENTIAL Frequently used indexes (page 3 of 5) HFRI Equity Hedge Total Index: Uses the HFR (Hedge Fund Research) database and consists only of equity hedge funds with a minimum of $50 million assets under management or a 12-month track record and that reported assets in U.S. dollars. HFRI Relative Value Fixed Income Corporate Index: Uses the HFR (Hedge Fund Research) database and consists of only relative value fixed income corporate funds with a minimum of $50 million assets under management or a 12-month track record and that reported assets in U.S. dollars. ICE BofAML 1-3 Year Corporate Index: Tracks U.S. dollar-denominated investment grade public debt issued in the U.S. bond market with maturities of one to three years. ICE BofAML 1-5 Year Corporate and Government Index: Tracks the performance of short-term U.S. investment grade government and corporate securities with maturities between one and five years. ICE BofAML U.S. 7-10 Year Index: Tracks the performance of U.S. dollar denominated investment grade rated corporate debt publicly issued in the U.S. domestic market and includes all securities with a remaining term to maturity of greater than or equal to seven years and less than 10 years. ICE BofAML Global Broad Market Index: Tracks the performance of investment grade public debt issued in the major domestic and Eurobond markets, including global bonds. ICE BofAML U.S. High Yield Master II Index: Commonly used benchmark index for high yield corporate bonds and measures the broad high yield market. J.P. Morgan Emerging Markets Bond Index Global (EMBI Global): Tracks total returns for traded external debt instruments in the emerging markets. London Interbank Offered Rate (LIBOR)3-months: The interest rate offered by a specific group of London banks for U.S. dollar deposits with a three-month maturity. London Interbank Offered Rate (LIBOR) 9-months:The interest rate offered by a specific group of London banks for U.S. dollar deposits with a nine-month maturity. MSCI All Country World Index (ACWI): Designed to measure the equity market performance of developed and emerging markets. City of Cupertino ▎ 5161 Client CONFIDENTIAL Frequently used indexes (page 4 of 5) Russell 2000 Value Index: Measures companies in the Russell 2000 Index having lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index includes the 2,000 firms from the Russell 3000 Index with the smallest market capitalizations. Russell 3000 Index: Measures the performance of the 3,000 largest U.S. securities based on total market capitalization. Russell Midcap Index: Measures the 800 smallest companies in the Russell 3000 Index. Russell Midcap Growth Index: Measures companies in the Russell Midcap Index having higher price-to-book ratios and higher forecasted growth values. Russell Midcap Value Index: Measures companies in the Russell Midcap Index having lower price-to-book ratios and lower forecasted growth values. MSCI All County World ex-U.S. Index (ACWI, excluding United States): Tracks the performance of stocks representing developed and emerging markets around the world that collectively comprise most foreign stock markets. U.S. stocks are excluded from the index. MSCI EAFE Index: Includes approximately 1,000 companies representing the stock markets of 21 countries in Europe, Australasia and the Far East. MSCI Emerging Markets (EM) Index: Designed to measure equity market performance in global emerging markets. MSCI World Index: Tracks equity market performance of developed markets through individual country indices. NAREIT Index: Includes REITs (Real Estate Investment Trusts) listed on the New York Stock Exchange, NASDAQ and American Stock Exchange. NASDAQ Composite Index: A market capitalization-weighted average of roughly 5,000 stocks that are electronically traded in the NASDAQ market. NCREIF Property Index (NPI): Measures the investment performance of a very large pool of individual commercial real estate properties acquired in the private market for investment purposes only. Russell 1000 Index: Measures the performance of the 1,000 largest companies in the Russell 3000 Index and is representative of the U.S. large capitalization securities market. City of Cupertino ▎ 5262 Client CONFIDENTIAL Frequently used indexes (page 5 of 5) Russell 1000 Growth Index: Measures companies in the Russell 1000 Index with higher price-to-book ratios and higher forecasted growth values. It includes the largest 1,000 firms in the Russell 3000 Index. Russell 1000 Value Index: Measures companies in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values. It includes the largest 1,000 firms in the Russell 3000 Index. Russell 2000 Index: Measures the performance of the 2,000 smallest companies in the Russell 3000 Index and is representative of the U.S. small capitalization securities market. Russell 2000 Growth Index: Measures companies in the Russell 2000 Index having higher price-to-book ratios and higher forecasted growth values. and is representative of U.S. securities exhibiting growth characteristics. The Russell 2000 Index includes the 2,000 firms from the Russell 3000 Index with the smallest market capitalizations. S&P 500 Index: Consists of 500 widely traded stocks that are considered to represent the performance of the U.S. stock market. S&P Global ex-U.S. Property Index: Measures the investable universe of publicly traded property companies domiciled in developed and emerging markets excluding the United States. The companies included are engaged in real estate related activities such as property ownership, management, development, rental and investment. S&P GSCI: A composite index of commodity sector returns, representing an unleveraged, long-only investment in commodity futures that is broadly diversified across the spectrum of commodities. S&P/Case-Shiller Home Price Indexes: A group of indexes that track changes in home prices throughout the United States. Case- Shiller produces indexes representing certain metropolitan statistical areas (MSA) as well as a national index. Swiss Re Global Cat Bond Total Return Index: Tracks the aggregate performance of all U.S. dollar-denominated euros and Japanese yen-denominated catastrophe bonds, capturing all ratings, perils and triggers. U.S. Dollar Index: Indicates the general international value of the U.S. dollar by averaging the exchange rates between the U.S. dollar and six major world currencies. Wilshire 5000 Index: Composed of more than 6,700 publicly-traded U.S. companies and is designed to track the overall performance of the American stock markets. City of Cupertino ▎ 5363 pfmam.com A Division of U.S. Bancorp Asset Management, Inc. For Institutional Investor or Investment Professional Use Only –This material is not for inspection by, distribution to, or quotation to the general public City of Cupertino Investment Review December 17, 2025 Dennis Mullins Emiline Jacobs 64 Agenda Ex Fossil Fuel Historical Index Return Current Lineup Sample Passive ESG ETF Lineup Sample Customized SMA Lineup Carbon Risk Ratings in Current Equities Portfolio Carbon Risk Ratings in Sample Equities Portfolio Customized SMA Introduction 65 MSCI USA ex Fossil Fuel Index 3 66 Historical ex Fossil Fuel Index Returns 4Source: MSCI USA ex Fossil Fuels November 2025 Factsheet 1.6 17.7 33.5 15.2 3.1 10.8 23.2 -4.0 32.5 23.5 26.5 -21.5 28.8 25.7 2.0 16.1 32.6 13.4 1.3 11.6 21.9 -4.5 31.6 21.4 27.0 -19.5 27.1 25.1 -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Annual Performance MSCI USA ex Fossil Fuels MSCI USA Gross Returns as of November 28, 2025 1 Mo 3 Mo 1 Yr YTD 3 Yr 5 Yr 10 Yr Since Nov 30, 2010 MSCI USA ex Fossil Fuels -0.09 6.43 15.42 18.11 21.56 14.60 14.93 15.06 MSCI USA 0.03 6.16 14.74 17.74 20.77 14.79 14.6 14.52 67 Fossil Fuel Exclusion Risk: Concentration 5Source: MSCI USA ex Fossil Fuels November 2025 Factsheet, Source: MSCI USA November 2025 Factsheet MSCI USA EX FOSSIL FUELS MSCI USA 68 Sample Lineups 6 69 Current Lineup City of Cupertino 115P Pension 7Manager lineup and expense ratios are as of December 12, 2025 and are subject to change. Policy Targets Tactical Weights Expense Ratio Domestic Equity 42.00%43.58% iShares Russell 1000 ETF 41.25%0.15% Fidelity Small Cap Index Fund 2.33%0.03% International Equity 21.00%21.50% Fidelity International Index Fund 15.80%0.04% Fidelity Emerging Markets Index Fund 5.70%0.08% Listed Real Assets 5.00%4.92% iShares Core U.S. REIT ETF 4.92%0.08% Commodities 2.00%0.00% Fixed Income 29.00%27.72% Fidelity U.S. Bond Index Fund 22.97%0.03% Aristan High Income Fund 4.75%0.71% Cash Equivalents 1.00%2.27% First American Government Obligations Fund Class X 2.27%0.14% 0.12% 70 Sample Passive ESG Lineup ETFs 8Manager lineup and expense ratios are as of December 12, 2025 and are subject to change. Policy Targets Current Weight Expense Ratio Domestic Equity 42.00%43.58% iShares ESG Optimized MSCI USA ETF 21.79%0.25%+10 bps Xtrackers MSCI USA ESG Leaders Eq ETF 21.79%0.10%+8 bps International Equity 21.00%21.50% iShares ESG Aware MSCI EAFE ETF 15.05%0.20%+17 bps iShares ESG Aware MSCI EM ETF 6.45%0.25%+ 18 bps Listed Real Assets 5.00%4.92% iShares Core U.S. REIT ETF 4.92%0.08% Commodities 2.00%0.00% Fixed Income 29.00%27.72% Fidelity U.S. Bond Index Fund 22.97%0.03% Aristan High Income Fund 4.75%0.71% Cash Equivalents 1.00%2.27% First American Government Obligations Fund Class X 2.27%0.14% 0.17% 71 Customized Equity SMAs 9Manager lineup and expense ratios are as of December 12, 2025 and are subject to change. Policy Targets Current Weight Expense Ratio Domestic Equity 42.00%43.58% Parametric Custom US Equity SMA 41.25%0.18%+3 bps Parametric Custom US Equity SMA 2.33%0.18%+16 bps International Equity 21.00%21.50% Parametric Custom IE Equity SMA 15.80%0.18%+15 bps Parametric Custom IE Equity SMA 5.70%0.18%+ 11 bps Listed Real Assets 5.00%4.92% iShares Core U.S. REIT ETF 4.92%0.08% Commodities 2.00%0.00% Fixed Income 29.00%27.72% Fidelity U.S. Bond Index Fund 22.97%0.03% Aristan High Income Fund 4.75%0.71% Cash Equivalents 1.00%2.27% First American Government Obligations Fund Class X 2.27%0.14% 0.14% 72 Current Equities Ratings 10 73 Current Equities Carbon Risk Overview City of Cupertino 115P Pension 11Benchmark : iShares MSCI ACWI ETF Source: Morningstar Direct 1.3 2.6 16.1 64.2 15.8 1.4 2.7 17.7 62.6 15.6 0.0 20.0 40.0 60.0 80.0 Severe Carbon Risk High Carbon Risk Medium Carbon Risk Low Carbon Risk Negligible Carbon Risk Distribution of Carbon Risk City of Cupertino 115P pension iShares MSCI ACWI ETF Carbon Coverage (% of AUM) 97.94 7.4 7.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 City of Cupertino 115P pension iShares MSCI ACWI ETF Portfolio Carbon Risk Score Portfolio Carbon Risk C ore: the asset -weighted average of the carbon risk scores for the portfolio's covered, corporate holdings. The carbon risk score indicates the overall material risk a company faces from the transition to a low -carbon economy. The c arbon risk core is measured on an open -ended scale starting at zero (no risk) and a maximum score that is typically below 100. A lower score is better. At least 67% of the portfolio's eligible assets must have carbon risk scores available in order for a score to be calculated. 74 Carbon Involvement City of Cupertino 115P Pension 12 Benchmark : iShares MSCI ACWI ETF Source: Morningstar Direct Morningstar’s Portfolio Fossil Fuel Involvement measures the percentage of the portfolio’s corporate assets that are involved in fossil fuels based on revenues. Companies are considered involved in fossil fuels if they derive at least an aggregate 5% share of total revenue from the activities listed in the Fossil Fuel Related Activities table. Companies involved in Arctic Oil & Gas Exploration and Oil Sands Extraction will be included only if there is no involvement in Oil & Gas Production. 7.6 8.4 0.0 2.0 4.0 6.0 8.0 10.0 City of Cupertino 115P pension iShares MSCI ACWI ETF Morningstar® Portfolio Fossil Fuel Involvement % of Covered Portfolio Involved 0.7 2.9 6.5 4.5 17.5 1.6 1.6 0.7 3.1 6.2 4.6 17.2 1.6 1.4 0.0 5.0 10.0 15.0 20.0 Thermal Coal Extraction Involvement Thermal Coal Power Generation Involvement Oil and Gas Production Involvement Oil and Gas Power Generation Involvement Oil and Gas Products and Services Involvement Arctic Oil and Gas Exploration Involvement Oil Sands Extraction Involvement Fossil Fuel Related Activities City of Cupertino 115P pension iShares MSCI ACWI ETF 75 Sample ESG ETF Lineup Equities Ratings 13 76 Carbon Risk Overview Sample Passive ESG ETF Lineup 14Benchmark : iShares MSCI ACWI ETF Source: Morningstar Direct Carbon Coverage (% of AUM) 98.66 1.3 2.6 16.1 64.2 15.8 0.2 1.3 13.8 67.2 17.5 0.0 20.0 40.0 60.0 80.0 Severe Carbon Risk High Carbon Risk Medium Carbon Risk Low Carbon Risk Negligible Carbon Risk Distribution of Carbon Risk Sample ESG Lineup iShares MSCI ACWI ETF 5.5 7.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Sample ESG Lineup iShares MSCI ACWI ETF Portfolio Carbon Risk Score Portfolio Carbon Risk C ore: the asset -weighted average of the carbon risk scores for the portfolio's covered, corporate holdings. The carbon risk score indicates the overall material risk a company faces from the transition to a low -carbon economy. The c arbon risk core is measured on an open -ended scale starting at zero (no risk) and a maximum score that is typically below 100. A lower score is better. At least 67% of the portfolio's eligible assets must have carbon risk scores available in order for a score to be calculated. 77 Carbon Involvement Sample Passive ESG ETF Lineup 15 Benchmark : iShares MSCI ACWI ETF Source: Morningstar Direct Morningstar’s Portfolio Fossil Fuel Involvement measures the percentage of the portfolio's corporate assets that are involved in fossil fuels based on revenues. 4.4 8.4 0.0 2.0 4.0 6.0 8.0 10.0 Sample ESG Lineup iShares MSCI ACWI ETF Morningstar® Portfolio Fossil Fuel Involvement % of Covered Portfolio Involved 0.7 2.9 6.5 4.5 17.5 1.6 1.6 0.5 1.0 4.2 2.4 16.3 0.5 0.2 0.0 10.0 20.0 Thermal Coal Extraction Involvement Thermal Coal Power Generation Involvement Oil and Gas Production Involvement Oil and Gas Power Generation Involvement Oil and Gas Products and Services Involvement Arctic Oil and Gas Exploration Involvement Oil Sands Extraction Involvement Fossil Fuel Related Activities Sample ESG Lineup iShares MSCI ACWI ETF Companies are considered involved in fossil fuels if they derive at least an aggregate 5% share of total revenue from the activities listed in the Fossil Fuel Related Activities table. Companies involved in Arctic Oil & Gas Exploration and Oil Sands Extraction will be included only if there is no involvement in Oil & Gas Production. 78 Customized Separately Managed Account 79 Intro to Parametric Process for Customized SMA 17Source: Parametric Custom Core Tax Advantaged Equity SMA Solutions Third Quarter 2025 Design the Exposure: Provide exposure to selected benchmark (e.g. Russell 1000) Determine the screen: Complete the responsible investing menu and decide screening approach (e.g. Fossil Fuel Free) Customized SMA (e.g. Russell 1000 ex Fossil Fuel) For illustrative purposes only 80 Parametric Screens Available Customized core equity sub -advised SMA with Parametric Portfolio Associates® LLC (“Parametric”) 18Source: Parametric Responsible Investing Overview 81 Parametric ESG Screen Definitions The definitions below stipulate the criteria for failure. Only securities that pass will be eligible for investment 19*Research coverage is at least the MSCI ACWI Investable Market Index universe. Source: Parametric Responsible Investing Screen Menu 82 Appendix 20 83 ESG Risk Overview City of Cupertino 115P Pension 21Benchmark : iShares MSCI ACWI ETF Source: Morningstar Direct Lower score => Less ESG risk Portfolio Corporate Sustainability Score : Asset -weighted average of Sustainalytics’ company - level ESG Risk Score. The Sustainalytics' company - level ESG Risk Score measures the degree to which a company’s economic value may be at risk driven by ESG factors. Like the ESG Risk Scores, the Portfolio Sustainability Score is rendered on a 0 -100 scale, where lower scores are better, using an asset - weighted average of all covered securities. 19.0 18.6 0.0 5.0 10.0 15.0 20.0 25.0 City of Cupertino 115P pension iShares MSCI ACWI ETF Portfolio Corporate Sustainability Score Portfolio Corporate ESG Risk Score ESG Risk Date Portfolio Weighting % Prospectus Net Expense Ratio Ticker iShares Russell 1000 ETF 18.44 10/31/2025 63.38 0.15 IWB Fidelity International Index 18.08 10/31/2025 24.28 0.04 FSPSX Fidelity Emerging Markets Index 21.04 10/31/2025 8.76 0.08 FPADX Fidelity Small Cap Index 26.37 10/31/2025 3.58 0.03 FSSNX 84 ESG Risk Score Breakdown City of Cupertino 115P Pension 22Benchmark : iShares MSCI ACWI ETF Source: Morningstar Direct ESG Risk Score Coverage Coverage (% of AUM)99.3 Coverage (# of Securities Scored)4,534 1.0 4.8 29.3 61.9 2.9 1.0 5.9 27.5 62.7 2.9 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 Corporate - Percent of Portfolio Covered with Severe ESG Risk Scores Corporate - Percent of Portfolio Covered with High ESG Risk Scores Corporate - Percent of Portfolio Covered with Medium ESG Risk Scores Corporate - Percent of Portfolio Covered with Low ESG Risk Scores Corporate - Percent of Portfolio Covered with Negligible ESG Risk Scores ESG Risk Scores City of Cupertino 115P pension iShares MSCI ACWI ETF 85 ESG Risk Overview Sample Passive ESG ETF Lineup 23Benchmark : iShares MSCI ACWI ETF Source: Morningstar Direct Lower score => Less ESG risk Portfolio Corporate Sustainability Score : Asset -weighted average of Sustainalytics’ company - level ESG Risk Score. The Sustainalytics' company - level ESG Risk Score measures the degree to which a company’s economic value may be at risk driven by ESG factors. Like the ESG Risk Scores, the Portfolio Sustainability Score is rendered on a 0 -100 scale, where lower scores are better, using an asset - weighted average of all covered securities Portfolio Corporate ESG Risk Score ESG Risk Date Portfolio Weighting % Prospectus Net Expense Ratio Ticker iShares ESG Optimized MSCI USA ETF 16.92 10/31/2025 33.33 0.25 SUSA Xtrackers MSCI USA Selection Eq ETF 16.71 10/31/2025 33.33 0.09 USSG iShares ESG Aware MSCI EAFE ETF 17.57 10/31/2025 23.33 0.21 ESGD iShares ESG Aware MSCI EM ETF 19.27 10/31/2025 10.00 0.26 ESGE 17.4 18.6 0.0 5.0 10.0 15.0 20.0 25.0 Sample ESG Lineup iShares MSCI ACWI ETF Portfolio Corporate Sustainability Score 86 ESG Risk Score Breakdown Sample Passive ESG ETF Lineup 24Benchmark : iShares MSCI ACWI ETF Source: Morningstar Direct ESG Risk Score Coverage Coverage (% of AUM)99.8 Coverage (# of Securities Scored)1,406 1.0 4.8 29.3 61.9 2.9 0.1 2.9 21.9 71.5 3.7 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 Corporate - Percent of Portfolio Covered with Severe ESG Risk Scores Corporate - Percent of Portfolio Covered with High ESG Risk Scores Corporate - Percent of Portfolio Covered with Medium ESG Risk Scores Corporate - Percent of Portfolio Covered with Low ESG Risk Scores Corporate - Percent of Portfolio Covered with Negligible ESG Risk Scores ESG Risk Scores Sample ESG Lineup iShares MSCI ACWI ETF 87 DisclaimerDisclosures This report contains information developed by Morningstar and Sustainalytics. 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Index returns do not reflect payment of any sales charges or fees an investor would pa y to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be lower than the performance shown. 25 88 DisclaimerDisclosures The views expressed within this material constitute the perspective and judgment of U.S. Bancorp Asset Management, Inc. at the time of distribution and are subject to change. Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon current opinion as of the date of issue and are also subject to change. Opinions and data presented are not necessarily indicative of future events or expected performance. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. No representation is made as to its accuracy or completeness. PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset Management, Inc., which is the legal entity providing investment advisory services. U.S. Bancorp Asset Management, Inc. is a registered investment adviser, a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S. Bank N.A. is not responsible for and does not guarantee the products, services, or performance of U.S. Bancorp Asset Management, Inc. NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public. 26 89 CITY OF CUPERTINO Agenda Item 26-14799 Agenda Date: 1/26/2026 Agenda #: 3. Subject:Receive the Treasurer's Investment Report for the Quarter Ending December 31, 2025 Receive the Treasurer's Investment Report for the Quarter Ending December 31,2025 and forward to City Council Presenter:Jonathan Orozco,Acting Director of Administrative Services and City Treasurer,and Chandler Asset Management CITY OF CUPERTINO Printed on 1/23/2026Page 1 of 1 powered by Legistar™90 AUDIT COMMITTEE STAFF REPORT Meeting: Janaury 26, 2026 Subject Receive the Treasurer's Investment Report for the Quarter Ending December 31, 2025 Recommended Action Receive the Treasurer's Investment Report for the Quarter Ending December 31, 2025 Reasons for Recommendation Background On May 20, 2025, the City Council approved the City Investment Policy. Per the City's Investment Policy, the Treasurer shall submit a quarterly investment report to the City Council approximately 45 days following the end of the quarter. In addition to the quarterly investment reports, monthly transaction reports are submitted to the City Council within 30 days of the end of the reporting period per California Government Code Section 53607. The quarterly investment report offers a more extensive discussion of the City's economy, cash flow, and investments. The City's Municipal Code Section 2.24.050 Investment Authority states that the Treasurer shall make a monthly report of all investment transactions to the City Council. The City's Municipal Code Section 2.48.020(A)(3) states that the Director of Administrative Services shall be appointed Treasurer and also shall act as ex officio Assessor and shall assess and collect all City taxes save and except for those collected by State and County officers for the City. Lastly, the City's Municipal Code Section 2.88.100 Duties–Powers– Responsibilities lists one of the powers and functions of the Audit Committee is "to review the quarterly Treasurer's Investment report." Per the referenced code provisions, a Treasurer's Investment Report is made available to the City Council quarterly. Treasurer's Investment Report The report provides an update on the City's investment portfolio for the month ending December 31, 2025. The report is as of Janaury 22, 2026. 91 2 The attached statements include balances and transactions of the City's investments with the Local Agency Investment Fund (LAIF) and Chandler Asset Management. The Chandler investment report provides information on the investment type, issuer, purchase date, maturity date, cost value, par value, and market value for each security, as well as the weighted average maturity and weighted average yield of all investments. While not governed by the City's Investment Policy, statements for the Public Agency Retirement Services (PARS) Section 115 Trusts are also attached per a request from the Treasurer's Report subcommittee. The City's General Ledger cash and investments balance is $309.0 million, a $7.6 million increase from the prior quarter. Cash and Investments – General Ledger Balance Fund Type Quarter Ending September 30, 2025 Quarter Ending December 31, 2025 General Fund 189,088,236 199,397,467 Special Revenue 45,510,313 45,016,324 Debt Service 2,676,600 2,436,800 Capital Projects 42,460,112 41,770,662 Enterprise 11,059,635 10,455,113 Internal Service 10,592,591 9,930,897 Total $301,387,488 $309,007,263 Note: Beginning balances have been updated to account for any final adjustments made as part of the month‐end close that could not be completed before the prior report’s preparation, including Cost Allocation charges between departments and bank fees. Although these fees were recorded timely, due to a system glitch, they were not reflected in the prior report. The City pools cash for all funds except restricted funds. However, the City accounts for interest earnings, revenues, and expenditures separately for each fund to adequately meet the purpose and restrictions of each funding source. Pooling funds is a common and appropriate practice used in public agencies. By pooling funds, the City can benefit from economies of scale, diversification, liquidity, and ease of administration. The table below shows the bank balances for the City's cash and investments. Bank and General Ledger balances differ due to timing. Bank balances do not include outstanding checks and deposits in transit. The General Ledger is updated quarterly with interest earnings and annually with the year-end investment market values. 92 3 Cash and Investments – Bank Balance Quarter Ending September 30, 2025 Quarter Ending December 31, 2025 % of Portfolio Cash in banks and on hand Operating Checking (Wells Fargo) 5,268,303 7,023,661 2% Workers' Compensation Checking (Wells Fargo) 22,912 19,225 0% Payroll Checking (Wells Fargo) - - 0% Restricted for Bond Repayments1 (BNY Mellon) - - 0% Cash Equivalents Local Agency Investment Fund 68,800,823 73,252,391 24% Investments Investments (Chandler) 202,164,870 203,529,920 66% Restricted for Pension2 (PARS) 25,665,064 26,228,208 8% Total Cash and Investments3 $301,921,972 $310,053,405 100% 1 Cash held by fiscal agent for bond repayments 2 In accordance with GASB 67/68, the assets in the Section 115 Pension Trust are reported as restricted cash and investments in the General Fund. The assets can only be used to fund CalPERS costs. 3 Assets in the Section 115 OPEB Trust are excluded as the City cannot use these assets to fund its own operations. The assets are held in trust for retirees' post-employment health benefits. 4 Beginning December 31, 2024, Investment amount reflect cost value. Wells Fargo Accounts The City, in collaboration with Chandler and Wells Fargo's relationship manager, continues to evaluate options to maximize investment opportunities for excess funds held in the City's operating account. As previously reported, the operating account was converted to a "Government Advantage Checking" account, which offers full FDIC insurance and an interest rate of 3% through March 31, 2025. As of the end of the December 2025 quarter, there has been no change to the interest rate. To support the effective deployment of funds and minimize idle cash balances, the City has developed an internal cash flow model that projects monthly cash inflows and outflows. This model enables the City to maintain a lower balance in its operating account while still meeting operational needs. The model also incorporates expected seasonal fluctuations in major revenue sources (e.g., property and sales tax) and expenditure patterns (e.g., CalPERS UAL and insurance obligations). To maintain daily liquidity, the City utilizes the Local Agency Investment Fund (LAIF) as a buffer for short-term needs. The combination of the Government Advantage Checking account and LAIF, along with the City's investment portfolio, provides a diversified and flexible approach to managing public funds in alignment with the City’s Investment Policy objectives of safety, liquidity, and return. 93 4 Staff will continue refining the cash flow model and evaluating investment options to enhance returns while prioritizing that adequate liquidity is preserved for City operations. Local Agency Investment Fund (LAIF) LAIF is an investment pool administered by the State of California Treasurer and governed by California Government Code. The City can withdraw funds from LAIF at any time. As a result, the City uses LAIF for short-term investment, liquidity, and yield. The City's LAIF account had a balance of $73.3 million. The quarterly interest rate was 4.20%. Investment Portfolio In FY 2018-19, the City conducted a Request for Proposal (RFP) for investment management services and selected Chandler Asset Management. Under the City's Treasurer's direction, Chandler Asset Management manages the City's investment portfolio in accordance with the City's investment objectives. The City's investment objectives, in order of priority, are to provide: Safety to ensure the preservation of capital in the overall portfolio Sufficient liquidity for cash needs A market rate of return consistent with the investment program The performance objective is to earn a total rate of return through a market cycle equal to or above the return on the benchmark index. Chandler Asset Management invests in high- quality fixed-income securities consistent with the City's Investment Policy and California Government Code to achieve the objective. The portfolio's total market value was $207.3 million, compared to $205.1 million at the end of the previous quarter. The portfolio's market value fluctuates depending on interest rates. When interest rates decrease after an investment is purchased, the market value of the investment increases. In contrast, when interest rates increase after an investment is purchased, the market value of the investment decreases. At the time of purchase, the City intends to hold all investments until maturity, meaning that changes in market value will not impact the City's investment principal. If the market value decreases, the City will incur an unrealized loss. However, the loss will only be realized if the City sells its investments before their maturity. The market values for the portfolio were provided by Chandler Asset Management. Section 115 Trust Investment Portfolio The City established Section 115 Trusts to reduce pension rate v olatility and pre-fund Other Post-Employment Benefits (OPEB) costs. These trusts are a tax-exempt investment tool that local governments can use to set aside funds for pension and retiree health costs. Contributions made to the trust can only be used to fund retirement plans. 94 5 Investments in the Section 115 Trusts are governed by separate investment policies, which are distinct from the City's Investment Policy. On December 3, 2024, City Council approved the Pension Trust Investment Policy and OPEB Trust Investment Policy. Public Agency Retirement Services (PARS) administers the trust, while US Bank manages the investments in accordance with the approved investment policies. Both Section 115 Trusts are invested in "balanced" portfolios. The investment objective is designed to provide a moderate amount of current income with moderate growth of capital. This type of investment strategy is generally recommended for investors with a long-term horizon. The strategic asset allocation ranges for this investment objective are: The Section 115 Pension Trust had a balance of $26.2 million, an increase of $0.6 million from the prior quarter due to investment gains. The Section 115 OPEB Trust had a balance of $46.1 million, an increase of $0.1 million from the prior quarter mainly due to investment gains. The quarterly investment return for OPEB Trust and Pension Trust was 2.27%. Compliance All of the City's investments comply with state law and the City's Investment Policy. In compliance with California Government Code 53646 (b)(3), the City maintains the ability to meet its expenditure requirements for the next six months. Sustainability Impact No sustainability impact. Fiscal Impact No fiscal impact. City Work Program Item/Description None City Council Goal Fiscal Strategy California Environmental Quality Act Not applicable. _____________________________________ Prepared by: __________________ Jonathan Orozco Acting Director of Administrative Services and City Treasurer 95 6 Approved for Submission by: __________________ Tina Kapoor City Manager Attachments: A – Chandler Investment Report December 2025 B – Chandler Custodial Statement December 2025 C – PARS Pension and OPEB Account Statement December 2025 D – LAIF Account Statement December 2025 96 INVESTMENT REPORT City of Cupertino | As of December 31, 2025 CHANDLER ASSET MANAGEMENT | chandlerasset.com Chandler Team: For questions about your account, please call (800) 317-4747, or contact clientservice@chandlerasset.com Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.97 TABLE OF CONTENTS City of Cupertino | As of December 31, 2025 ECONOMIC UPDATE ACCOUNT PROFILE CONSOLIDATED INFORMATION PORTFOLIO HOLDINGS TRANSACTIONS 1 98 ECONOMIC UPDATE 2 99 The near-term economic outlook continues to be distorted by the data delays from the government shutdown.Recently released government data—reflecting conditions from two to three months ago—indicate inflation remains moderately above the Federal Reserve’s target,while labor market conditions have continued to soften.As the flow of economic data normalizes,the Chandler team expects further yield curve steepening as the Federal Reserve moves the policy rate toward a more neutral range.U.S.trade and fiscal policy also remain sources of elevated market uncertainty. The Federal Reserve's December Federal Open Market Committee meeting concluded with the third consecutive 25-basis-point rate cut in 2025,lowering the target range to 3.50%–3.75%.However,policymakers remain divided on the path forward.Four Fed governors project one additional 25-basis-point cut in 2026,another four anticipate no further easing,eight expect multiple cuts, and three call for a potential rate hike.Chair Jerome Powell noted that the Fed is now “well placed to wait and see”how labor market conditions and inflation evolve in the near term. The US Treasury yield curve steepened in December,as the 2-year Treasury yield dropped 2 basis points to 3.48%,the 5-year Treasury was up 13 basis points to 3.73%,and the 10-year Treasury yield was 15 basis points higher at 4.17%.The spread between the 2-year and 10- year Treasury yield points on the curve was 17 basis points wider from November at +69 basis points at December month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was +33 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was +54 basis points in December versus +21 basis points in November. ECONOMIC UPDATE 3 100 -400 -200 0 200 400 600 800 1,000 MO M C h a n g e I n T h o u s a n d s ( 0 0 0 ' s ) Nonfarm Payroll (000's) Non-farm Payroll (000's) 3-month average (000's) -1.0% 3.0% 7.0% 11.0% 15.0% Unemployment Rate Underemployment Rate (U6) Unemployment Rate (U3) Ra t e ( % ) The December Nonfarm Payrolls report showed weaker-than-expected job growth, with payrolls rising by 50,000 compared with the consensus estimate of 70,000.This follows a downwardly revised gain of 56,000 in November.Employment declines were most pronounced in retail trade and construction,while leisure and hospitality posted the strongest gains. Notably,the unemployment rate edged down to 4.4% after increasing to 4.6% in November. Source: US Department of Labor Source: US Department of Labor EMPLOYMENT 4 101 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Job Openings Recession Historical Average In T h o u s a n d s ( 0 0 0 ' s ) The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) reported that job openings fell to 7.1 million in November from a downwardly revised 7.4 million in October.The drop in vacancies, alongside slower hiring,suggests the labor market continues to soften, though employers remain cautious about laying off workers.The number of openings now roughly matches the number of unemployed individuals, pointing to a labor market that is approaching equilibrium. Source: US Department of Labor JOB OPENINGS & LABOR TURNOVER SURVEY 5 102 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Consumer Price Index (CPI) CPI YOY % Change Core CPI YOY % Change YO Y ( % ) C h a n g e 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Personal Consumption Expenditures (PCE) PCE Price Deflator YOY % ChangePCE Core Deflator YOY % ChangeFed Target YO Y ( % ) C h a n g e Inflation came in lower than expected in November,with the Consumer Price Index (CPI)rising 2.7%year over year and core CPI easing to 2.6%.Notably,both Owners’Equivalent Rent and Rent of Primary Residence contributed to the slowdown in services inflation.Shelter costs typically lag broader market trends by 12 to 18 months.Services,meanwhile,have remained the dominant driver of inflation throughout the post-pandemic period. The Personal Consumption Expenditures (PCE)Index for September, released on December 5, showed headline inflation up 0.3% from August and 2.8% year over year. Core PCE rose 0.2% on the month and 2.8% on an annual basis. Source: US Department of Labor Source: US Department of Commerce INFLATION 6 103 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Retail Sales YOY % Change YO Y ( % ) C h a n g e October Retail Sales,released with a one-month delay,were flat from the prior month but up 3.5%year over year.Eight of thirteen major categories posted gains, while motor vehicle sales declined following the expiration of federal tax incentives for electric vehicles, and gas station sales weakened amid lower fuel prices.The government shutdown may have weighed on consumer confidence regarding jobs, incomes,and overall financial conditions,both current and in the future. The Conference Board’s Consumer Confidence Index declined to 89.1 in December from an upwardly revised 92.9 in November,marking its fifth consecutive monthly drop. Consumers were pessimistic about both business conditions and the labor market. 0 20 40 60 80 100 120 140 160 In d e x L e v e l Consumer Confidence Recession Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09) CONSUMER 7 104 -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Leading Economic Indicators (LEI) Recession YO Y (% ) C h a n g e -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 Chicago Fed National Activity Index (CFNAI) Recession 3 M o n t h A v e r a g e The Conference Board’s Leading Economic Index (LEI) declined 0.3% in September, marking its second consecutive monthly decrease after a revised 0.3%drop in August.On a year-over-year basis,the index fell 3.3%.According to the Conference Board,weakening expectations among consumers and businesses contributed most to the LEI’s overall decline. The index continues to signal slower economic growth through the end of 2025 and into 2026.The Chicago Fed National Activity Index (CFNAI)came in at -0.21 in September,following a downwardly revised -0.31 in August,signaling that U.S.economic activity remained below its historical trend for the sixth consecutive month. The three-month moving average ticked down to -0.21 in September from -0.18 in August, reinforcing signs of ongoing below-trend national growth. Employment-related indicators turned slightly positive, contributing +0.01 in September after a -0.11 result in August. Source: The Conference Board Source: Federal Reserve Bank of Chicago LEADING INDICATORS OF ECONOMIC ACTIVITY 8 105 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 In T h o u s a n d s o f U n i t s Annualized Housing Starts Multi Family Housing Starts Single Family Housing Starts The S&P Cotality Case-Shiller 20-City Composite Home Price Index rose 1.3%year over year in October,slightly down from a 1.4%gain in September and marking the slowest annual increase since mid 2023.Short-term momentum also weakened,with 80 percent of the 20 tracked markets recording month-over-month price declines on a non-seasonally adjusted basis.Housing starts declined in October to an annualized rate of 1.25 million units,down from 1.29 million in September.Existing home sales inched higher in November to a 4.13 million-unit pace,indicating only modest improvement despite some relief in mortgage rates.The Freddie Mac 30 ‑ year fixed mortgage rate fell throughout 2025 and averaged 6.18% at the end of December. Source: US Department of Commerce Source: S&P -20.0% -16.0% -12.0% -8.0% -4.0% 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% S&P/Case-Shiller 20 City Composite Home Price Index Recession YO Y ( % ) C h a n g e HOUSING 9 106 40 45 50 55 60 65 70 Institute of Supply Management (ISM) Surveys ISM Manufacturing ISM Services EXPANDING CONTRACTING The Institute for Supply Management’s (ISM)manufacturing index slipped to 47.9 in December,down from 48.2 in November,marking continued weakness across the sector.Manufacturing activity has now been in contraction for 36 of the past 38 months,as readings below 50 indicate contraction and those above 50 signal expansion. The latest decline was driven primarily by pullbacks in the Production and Inventories components.In contrast,the ISM services index remained in expansion territory,rising to 54.4 in December from 52.6 in November.Respondents attributed the improvement to seasonal strength, though many remained cautious about the potential impact of tariffs. Source: Institute for Supply Management SURVEY BASED MEASURES 10 107 Components of GDP 12/24 3/25 6/25 9/25 2.6% 0.4% 1.7% 2.4% -1.3% 3.8% -2.7% 0.0% -0.1% -4.7% 4.8% 1.6% 0.3% -0.4% -0.4% 0.2% 0.3% 0.2% 0.3% 0.2% 1.9% -0.6% 3.8% 4.3% State and Local (Consumption and Gross Investment) Personal Consumption Expenditures Gross Private Domestic Investment Net Exports and Imports Federal Government Expenditures Total -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Source: US Department of Commerce Source: US Department of Commerce The U.S.inflation adjusted gross domestic product (GDP)report demonstrated continued strength in the third quarter,with the first estimate showing a 4.3%annualized quarter-over-quarter increase,up from 3.8%in the second quarter.Consumer spending accelerated, while exports contributed 1.6 percentage points to growth—both key drivers of the quarter’s performance.The stronger-than-expected result represented the fastest pace of U.S.economic expansion in two years.The consensus projection calls for 1.1%growth in the fourth quarter and 2.0% growth for the full year 2025. GROSS DOMESTIC PRODUCT (GDP) 11 108 Source: Federal Reserve Source: Bloomberg 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 Federal Reserve Balance Sheet Assets Recession In $ m i l l i o n s The Federal Reserve lowered its benchmark interest rate by a quarter point to a target range of 3.50%to 3.75%at its December meeting, citing concerns about emerging weakness in the labor market.A few policymakers dissented, arguing that tighter monetary policy may still be warranted to ensure progress on price stability.Beginning December 1,the Fed also halted its balance sheet runoff, announcing that principal and interest payments from its holdings will be reinvested in Treasury securities to maintain ample reserves and support market stability. FEDERAL RESERVE 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Recession 12 109 Source: Bloomberg Source: Bloomberg 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Note Yields 2-Year 5-Year 10-Year Yi e l d ( % ) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Yield Curve Dec-25 Sep-25 Dec-24 Yi e l d ( % ) At the end of December,the 2-year yield was 77 basis points lower,and the 10-year yield was 40 basis points lower,year-over-year.The spread between the 2-year and 10-year Treasury yield points on the curve increased to +69 basis points at December month-end versus +52 basis points at November month-end. The prior 2-year/10-year yield curve inversion,which spanned from July 2022 to August 2024, was historically long.The average historical spread (since 2005)is about +95 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was +54 basis points in December versus +21 basis points in November. BOND YIELDS 13 110 ACCOUNT PROFILE 14 111 OBJECTIVES City of Cupertino | As of December 31, 2025 Investment Objectives The City of Cupertino's investment objectives, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program. Chandler Asset Management Performance Objective The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index. Strategy In order to achieve these objectives, the portfolio invests in high quality fixed incomes securities consistent with the investment policy and California Government Code. 15 112 STATEMENT OF COMPLIANCE City of Cupertino | Account #10659 | As of December 31, 2025 Rules Name Limit Actual Compliance Status Notes AGENCY MORTGAGE SECURITIES Max % (MV)100.0 11.6 Compliant Max % Issuer (MV; Agencies & Agency CMOs)25.0 2.6 Compliant Max Maturity (Years)5.0 4.5 Compliant ASSET-BACKED SECURITIES (ABS) Max % (MV; Non Agency ABS & MBS)20.0 7.6 Compliant Max % Issuer (MV)5.0 0.8 Compliant Max Maturity (Years)5 4 Compliant Min Rating (AA- by 1)0.0 0.0 Compliant BANKERS' ACCEPTANCES Max % (MV)40.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Days)180 0.0 Compliant Min Rating (A-1 by 1 or A- by 1)0.0 0.0 Compliant CERTIFICATE OF DEPOSIT PLACEMENT SERVICE (CDARS) Max % (MV)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5.0 0.0 Compliant COLLATERALIZED TIME DEPOSITS (NON- NEGOTIABLE CD/TD) Max % (MV; FDIC & Collateralized CD/TD)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5.0 0.0 Compliant COMMERCIAL PAPER Max % (MV)25.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Days)270 0.0 Compliant Min Rating (A-1 by 1 or A- by 1)0.0 0.0 Compliant CORPORATE MEDIUM TERM NOTES 16 113 STATEMENT OF COMPLIANCE City of Cupertino | Account #10659 | As of December 31, 2025 Rules Name Limit Actual Compliance Status Notes Max % (MV)30.0 27.5 Compliant Max % Issuer (MV)5.0 1.4 Compliant Max Maturity (Years)5 4 Compliant Min Rating (A- by 1)0.0 0.0 Compliant FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE CD/TD) Max % (MV; FDIC & Collateralized CD/TD)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5 0.0 Compliant FEDERAL AGENCIES Max % (MV)100.0 3.5 Compliant Max % Issuer (MV; Agencies & Agency CMOs)25.0 2.6 Compliant Max Callables (MV)20.0 0.0 Compliant Max Maturity (Years)5 1 Compliant LOCAL AGENCY INVESTMENT FUND (LAIF) Max Concentration (MV)75.0 0.0 Compliant MONEY MARKET MUTUAL FUNDS Max % (MV)20.0 0.6 Compliant Min Rating (AAA by 2)0.0 0.0 Compliant MORTGAGE-BACKED SECURITIES (NON-AGENCY) Max % (MV)20.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5.0 0.0 Compliant Min Rating (AA- by 1)0.0 0.0 Compliant MUNICIPAL SECURITIES (CA, LOCAL AGENCY) Max % (MV)30.0 0.9 Compliant Max % Issuer (MV)5.0 0.9 Compliant Max Maturity (Years)5 3 Compliant Min Rating (A- by 1)0.0 0.0 Compliant MUNICIPAL SECURITIES (CA, OTHER STATES) 17 114 STATEMENT OF COMPLIANCE City of Cupertino | Account #10659 | As of December 31, 2025 Rules Name Limit Actual Compliance Status Notes Max % (MV)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5 0.0 Compliant Min Rating (A- by 1)0.0 0.0 Compliant NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD) Max % (MV)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5 0.0 Compliant Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit)0.0 0.0 Compliant REPURCHASE AGREEMENTS Max % (MV)10.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)1.0 0.0 Compliant SUPRANATIONAL OBLIGATIONS Max % (MV)30.0 2.9 Compliant Max % Issuer (MV)10.0 1.7 Compliant Max Maturity (Years)5 4 Compliant Min Rating (AA- by 1)0.0 0.0 Compliant U.S. TREASURIES Max % (MV)100.0 45.5 Compliant Max Maturity (Years)5 4 Compliant 18 115 PORTFOLIO SUMMARY Sector Allocation Performance Review Total Rate of Return**1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS Since Inception (02/01/19) City of Cupertino 0.19%1.08%6.06%6.06%5.09%4.94%1.70%--2.40% Benchmark Return 0.19%1.11%5.73%5.73%4.53%4.52%1.37%--2.15% City of Cupertino | Account #10659 | As of December 31, 2025 Portfolio Characteristics Account Summary Maturity Distribution Top Issuers Credit Quality* Average Modified Duration 2.63 Average Coupon 3.71% Average Purchase YTM 3.95% Average Market YTM 3.78% Average Credit Quality*AA Average Final Maturity 3.05 Average Life 2.87 End Values as of 09/30/2025 End Values as of 12/31/2025 Market Value 204,001,801.31 205,668,734.88 Accrued Interest 1,106,379.00 1,621,951.12 Total Market Value 205,108,180.31 207,290,686.00 Income Earned 1,646,763.62 1,975,161.43 Cont/WD 27,800,000.00 0.00 Par 204,299,921.15 205,673,731.74 Book Value 202,688,318.55 204,078,590.52 Cost Value 202,164,869.60 203,529,920.42 United States 45.52% FHLMC 11.56% Farm Credit System 2.57% International Bank for Recon and Dev 1.70% Morgan Stanley 1.68% Toyota Motor Corporation 1.39% Guardian Life Global Funding 1.32% The Home Depot, Inc.1.28% *The average credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. **Periods over 1 year are annualized. Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index 19 116 PORTFOLIO CHARACTERISTICS City of Cupertino | Account #10659 | As of December 31, 2025 Benchmark*12/31/2025 Portfolio 9/30/2025 Portfolio Average Maturity (yrs)2.64 3.05 2.56 Average Modified Duration 2.47 2.63 2.21 Average Purchase Yield 3.95%3.32% Average Market Yield 3.55%3.78%3.35% Average Quality**AA+AA AA+ Total Market Value 207,290,686 205,108,180 *Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 20 117 SECTOR DISTRIBUTION City of Cupertino | Account #10659 | As of December 31, 2025 Sector as a Percentage of Market Value Sector 12/31/2025 09/30/2025 US Treasury 45.52%37.16% Corporate 27.48%24.11% Agency CMBS 11.56%10.69% ABS 7.60%6.36% Agency 3.50%3.50% Supras 2.88%3.55% Muni Bonds 0.87%0.87% Money Mkt Fd 0.59%0.24% Cash --13.53% 21 118 DURATION ALLOCATION City of Cupertino | Account #10659 | As of December 31, 2025 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+ 12/31/2025 1.9%3.3%8.0%20.8%19.4%30.7%15.7%0.0%0.0% 22 119 ISSUERS City of Cupertino | Account #10659 | As of December 31, 2025 Issuer Investment Type % Portfolio United States US Treasury 45.52% FHLMC Agency CMBS 11.56% Farm Credit System Agency 2.57% International Bank for Recon and Dev Supras 1.70% Morgan Stanley Corporate 1.68% Toyota Motor Corporation Corporate 1.39% Guardian Life Global Funding Corporate 1.32% The Home Depot, Inc.Corporate 1.28% Deere & Company Corporate 1.20% Inter-American Development Bank Supras 1.19% Meta Platforms, Inc.Corporate 1.18% New York Life Insurance Company Corporate 1.17% Caterpillar Inc.Corporate 1.09% Royal Bank of Canada Corporate 1.00% Massachusetts Mutual Life Insurance Corporate 0.97% UnitedHealth Group Incorporated Corporate 0.93% Federal Home Loan Banks Agency 0.93% PACCAR Inc Corporate 0.91% Simon Property Group, Inc.Corporate 0.91% Chubb Limited Corporate 0.87% State of California Muni Bonds 0.87% American Honda Finance Corporation Corporate 0.86% Pricoa Global Funding I Corporate 0.85% Chase Issuance Trust ABS 0.83% Bank of America Credit Card Trust ABS 0.81% Berkshire Hathaway Inc.Corporate 0.77% PepsiCo, Inc.Corporate 0.74% Citigroup Inc ABS 0.74% Prologis, Inc.Corporate 0.74% Bank of America Corporation Corporate 0.73% 23 120 ISSUERS City of Cupertino | Account #10659 | As of December 31, 2025 Issuer Investment Type % Portfolio JPMorgan Chase & Co.Corporate 0.73% The Progressive Corporation Corporate 0.73% Realty Income Corporation Corporate 0.71% American Express Credit Master Trust ABS 0.70% Marsh & McLennan Companies, Inc.Corporate 0.69% WF Card Issuance Trust ABS 0.67% Wells Fargo & Company Money Mkt Fd 0.57% Honda Auto Receivables Owner Trust ABS 0.54% Cargill, Incorporated Corporate 0.53% Metropolitan Life Global Funding I Corporate 0.53% GM Financial Securitized Term ABS 0.53% BMW Vehicle Lease Trust ABS 0.51% Mercedes-Benz Auto Lease Trust ABS 0.51% National Rural Utilities Cooperative Corporate 0.50% The Goldman Sachs Group, Inc.Corporate 0.50% Northwestern Mutual Global Funding Corporate 0.49% Mastercard Incorporated Corporate 0.47% The Charles Schwab Corporation Corporate 0.46% Toyota Auto Receivables Owner Trust ABS 0.40% John Deere Owner Trust ABS 0.39% Met Tower Global Funding Corporate 0.37% Mercedes-Benz Auto Receivables Trust ABS 0.37% BMW Vehicle Owner Trust ABS 0.34% Hyundai Auto Lease Securitization Tr ABS 0.27% Walmart Inc.Corporate 0.17% WC MMF Sweep Money Mkt Fd 0.03% Cash Cash 0.00% TOTAL 100.00% 24 121 QUALITY DISTRIBUTION Rating 12/31/2025 09/30/2025 AAA 11.52%23.28% AA 66.23%56.92% A 18.76%16.64% BBB 0.50%-- NA 3.00%3.16% Rating 12/31/2025 09/30/2025 Aaa 8.21%20.99% Aa 68.96%57.92% A 18.32%16.60% NA 4.51%4.49% Rating 12/31/2025 09/30/2025 AAA 14.80%26.36% AA 60.71%52.84% A 11.16%10.00% NA 13.33%10.80% City of Cupertino | Account #10659 | As of December 31, 2025 S&P Rating Moody’s Rating Fitch Rating 25 122 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+ Portfolio 1.9%3.3%8.0%20.8%19.4%30.7%15.7%0.0%0.0% ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index 0.0%0.0%2.5%35.4%28.7%21.2%12.3%0.0%0.0% DURATION DISTRIBUTION City of Cupertino | Account #10659 | As of December 31, 2025 Portfolio Compared to the Benchmark 26 123 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception TOTAL RATE OF RETURN* City of Cupertino Gross of Fees 1.08%6.06%5.09%4.94%1.70%2.40% City of Cupertino Net of Fees 1.07%5.99%5.02%4.87%1.63%2.33% Benchmark 1.11%5.73%4.53%4.52%1.37%2.15% REALIZED RATE OF RETURN City of Cupertino 0.96%3.54%3.01% *Periods over 1 year are annualized. Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. Realized rate of return: A measure of a portfolio’s return over time. It is the internal rate which equates the beginning book value of the portfolio with the ending book value; it includes interest earnings, realized gains and losses in the portfolio. Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index INVESTMENT PERFORMANCE City of Cupertino | Account #10659 | As of December 31, 2025 Total and Realized Rate of Return : Inception | 02/01/2019 27 124 HISTORICAL AVERAGE PURCHASE YIELD City of Cupertino | Account #10659 | As of December 31, 2025 Purchase Yield as of 12/31/25 = 3.95% 28 125 PORTFOLIO CHARACTERISTICS City of Cupertino Reporting | Account #10663 | As of December 31, 2025 12/31/2025 Portfolio 9/30/2025 Portfolio Average Maturity (yrs)0.00 0.00 Average Modified Duration 0.00 0.00 Average Purchase Yield 3.63%3.90% Average Market Yield 3.63%3.90% Average Quality**AAA AAA Total Market Value 81,009,098 74,825,162 *Benchmark: NO BENCHMARK REQUIRED **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 29 126 SECTOR DISTRIBUTION City of Cupertino Reporting | Account #10663 | As of December 31, 2025 Sector as a Percentage of Market Value Sector 12/31/2025 09/30/2025 LAIF 91.23%92.86% Cash 8.77%7.14% 30 127 CONSOLIDATED INFORMATION 31 128 PORTFOLIO CHARACTERISTICS City of Cupertino Cons | Account #10664 | As of December 31, 2025 12/31/2025 Portfolio 9/30/2025 Portfolio Average Maturity (yrs)2.19 1.87 Average Modified Duration 1.89 1.62 Average Purchase Yield 3.86%3.47% Average Market Yield 3.74%3.50% Average Quality**AA+AA+ Total Market Value 288,299,784 279,933,343 *Benchmark: NO BENCHMARK REQUIRED **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 32 129 SECTOR DISTRIBUTION City of Cupertino Cons | Account #10664 | As of December 31, 2025 Sector as a Percentage of Market Value Sector 12/31/2025 09/30/2025 US Treasury 32.74%27.31% LAIF 25.62%24.61% Corporate 19.77%17.72% Agency CMBS 8.31%7.85% ABS 5.47%4.67% Agency 2.52%2.57% Cash 2.46%11.84% Supras 2.07%2.61% Muni Bonds 0.62%0.64% Money Mkt Fd 0.43%0.18% 33 130 PORTFOLIO HOLDINGS 34 131 HOLDINGS REPORT City of Cupertino | Account #10659 | As of December 31, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration ABS 47800AAC4 JDOT 2022-B A3 3.74 02/16/2027 73,664.30 07/12/2022 3.77% 73,657.26 73,662.62 99.96 4.07% 73,637.04 122.45 0.04% (25.58) Aaa/NA AAA 1.13 0.12 44934FAD7 HALST 2024-B A3 5.41 05/17/2027 560,116.93 05/14/2024 5.41% 560,101.36 560,109.77 100.51 4.11% 562,972.97 1,346.77 0.27% 2,863.20 NA/AAA AAA 1.38 0.37 47800BAC2 JDOT 2022-C A3 5.09 06/15/2027 231,161.92 10/12/2022 5.15% 231,143.98 231,156.39 100.24 4.16% 231,724.80 522.94 0.11% 568.40 Aaa/NA AAA 1.45 0.24 89231FAD2 TAOT 2023-C A3 5.16 04/17/2028 817,404.32 11/21/2023 5.65% 814,083.62 815,673.67 100.59 4.05% 822,250.71 1,874.58 0.40% 6,577.04 NA/AAA AAA 2.30 0.51 438123AC5 HAROT 2023-4 A3 5.67 06/21/2028 570,497.05 -- 5.64% 571,909.24 571,122.23 101.09 4.09% 576,722.88 898.53 0.28% 5,600.66 Aaa/NA AAA 2.47 0.64 05594HAD5 BMWLT 2025-2 A3 3.97 09/25/2028 1,050,000.00 10/08/2025 4.32% 1,049,997.06 1,049,997.27 100.27 3.82% 1,052,808.75 694.75 0.51% 2,811.48 NA/AAA AAA 2.74 1.47 58769FAC9 MBART 2023-2 A3 5.95 11/15/2028 741,090.54 11/29/2023 3.88% 756,780.81 748,557.41 101.34 4.13% 751,006.33 1,959.77 0.37% 2,448.92 NA/AAA AAA 2.88 0.70 47800RAD5 JDOT 2024 A3 4.96 11/15/2028 500,000.00 03/25/2024 5.13% 499,765.63 499,854.87 100.88 3.98% 504,381.50 1,102.22 0.25% 4,526.63 Aaa/NA AAA 2.88 0.85 05522RDH8 BACCT 2023-2 A 4.98 11/16/2026 850,000.00 01/24/2024 4.58% 858,798.83 852,738.19 101.04 3.79% 858,823.00 1,881.33 0.42% 6,084.81 Aaa/NA AAA 0.88 0.84 437930AC4 HAROT 2024-2 A3 5.27 11/20/2028 519,127.49 05/14/2024 5.27% 519,064.41 519,087.05 101.21 3.84% 525,406.33 987.93 0.26% 6,319.28 NA/AAA AAA 2.89 0.81 36268GAD7 GMCAR 2024-1 A3 4.85 12/18/2028 1,085,959.77 -- 4.97% 1,084,237.70 1,084,862.93 100.61 4.00% 1,092,586.29 2,194.54 0.53% 7,723.37 Aaa/NA AAA 2.97 0.68 161571HV9 CHAIT 241 A 4.6 01/16/2029 1,690,000.00 01/24/2024 4.61% 1,689,742.61 1,689,842.18 100.90 3.75% 1,705,140.71 3,455.11 0.83% 15,298.53 NA/AAA AAA 3.04 0.99 096919AD7 BMWOT 2024-A A3 5.18 02/26/2029 685,001.19 06/04/2024 5.18% 684,897.14 684,931.54 100.91 3.98% 691,253.20 591.38 0.34% 6,321.66 Aaa/AAA NA 3.16 0.73 58770XAD5 MBALT 2025-B A3 3.88 04/16/2029 1,045,000.00 10/16/2025 4.57% 1,044,828.52 1,044,838.09 100.09 3.86% 1,045,976.03 1,802.04 0.51% 1,137.94 NA/AAA AAA 3.29 1.94 05522RDJ4 BACCT 2024-1 A 4.93 05/15/2029 785,000.00 06/06/2024 4.93% 784,955.96 784,969.97 101.57 3.78% 797,297.81 1,720.02 0.39% 12,327.84 Aaa/AAA NA 3.37 1.30 02582JKP4 AMXCA 2025-2 A 4.28 04/15/2030 1,420,000.00 05/06/2025 4.28% 1,419,974.30 1,419,977.63 101.14 3.79% 1,436,207.88 2,701.16 0.70% 16,230.25 NA/AAA AAA 4.29 2.14 35 132 HOLDINGS REPORT City of Cupertino | Account #10659 | As of December 31, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 92970QAJ4 WFCIT 2025-1 A 4.34 05/15/2030 1,365,000.00 06/03/2025 4.33% 1,364,977.34 1,364,979.92 101.33 3.78% 1,383,120.38 2,632.93 0.67% 18,140.45 NA/AAA AAA 4.37 2.21 17305EHA6 CCCIT 2025-A1 A1 4.3 06/21/2030 1,500,000.00 10/09/2025 3.90% 1,515,000.00 1,513,736.04 101.16 3.80% 1,517,418.00 1,791.67 0.74% 3,681.96 Aaa/AAA NA 4.47 2.32 15,523,915.77 100.90 15,628,734.61 7.60%3.14 Total ABS 15,489,023.50 4.66%15,510,097.78 3.88%28,280.14 118,636.83 1.30 AGENCY 3130B0TY5 FEDERAL HOME LOAN BANKS 4.75 04/09/2027 1,875,000.00 04/10/2024 4.85% 1,870,050.00 1,872,903.16 101.68 3.38% 1,906,554.38 20,286.46 0.93% 33,651.22 Aa1/AA+ AA+ 1.27 1.21 3133ERDS7 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.75 05/06/2027 2,400,000.00 06/20/2024 4.55% 2,412,552.00 2,405,863.18 101.63 3.49% 2,439,168.00 17,416.67 1.19% 33,304.82 Aa1/AA+ AA+ 1.34 1.29 3133EPC60 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.625 11/15/2027 2,800,000.00 11/09/2023 4.73% 2,789,612.00 2,795,143.73 101.99 3.51% 2,855,658.40 16,547.22 1.39% 60,514.67 Aa1/AA+ AA+ 1.87 1.77 7,072,214.00 101.79 7,201,380.78 3.50%1.53 Total Agency 7,075,000.00 4.70%7,073,910.07 3.47%54,250.35 127,470.70 1.46 AGENCY CMBS 3137BSP72 FHMS K-058 A2 2.653 08/25/2026 650,000.00 11/12/2021 1.36% 687,451.17 654,621.45 99.14 3.82% 644,432.75 1,437.04 0.31% (10,188.70) Aa1/AA+ AAA 0.65 0.59 3137FBBX3 FHMS K-068 A2 3.244 08/25/2027 1,000,000.00 09/28/2022 4.36% 950,664.06 983,853.18 99.12 3.71% 991,219.00 2,703.33 0.48% 7,365.82 Aaa/AA+ AA+ 1.65 1.51 3137FKUP9 FHMS K-087 A2 3.771 12/25/2028 1,943,312.76 07/01/2024 4.86% 1,859,127.85 1,887,625.23 99.74 3.81% 1,938,188.24 6,106.86 0.94% 50,563.02 Aa1/AAA AA+ 2.99 2.65 3137FL6P4 FHMS K-089 A2 3.563 01/25/2029 1,288,000.00 07/03/2024 4.70% 1,228,178.44 1,247,948.42 99.09 3.83% 1,276,325.57 3,824.29 0.62% 28,377.14 Aa1/AA+ AA+ 3.07 2.82 3137H5YC5 FHMS K-748 A2 2.26 01/25/2029 2,000,000.00 07/03/2024 4.74% 1,801,718.75 1,867,247.25 95.51 3.84% 1,910,230.00 3,766.67 0.93% 42,982.75 Aa1/AA+ AAA 3.07 2.83 3137FKZZ2 FHMS K-088 A2 3.69 01/25/2029 2,550,000.00 07/17/2024 4.50% 2,465,830.08 2,493,195.67 99.49 3.81% 2,536,938.90 7,841.25 1.23% 43,743.23 Aaa/AA+ AA+ 3.07 2.78 3137FLN91 FHMS K-091 A2 3.505 03/25/2029 2,500,000.00 03/20/2025 4.25% 2,431,738.28 2,445,134.11 98.88 3.84% 2,472,087.50 7,302.08 1.20% 26,953.39 Aa1/AAA AA+ 3.23 2.90 36 133 HOLDINGS REPORT City of Cupertino | Account #10659 | As of December 31, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 3137FMCR1 FHMS K-093 A2 2.982 05/25/2029 1,971,885.56 09/19/2024 3.82% 1,902,407.40 1,921,596.61 97.33 3.84% 1,919,194.81 4,900.14 0.93% (2,401.80) Aa1/AA+ AAA 3.40 2.98 3137FNAE0 FHMS K-095 A2 2.785 06/25/2029 2,200,000.00 07/17/2024 4.47% 2,039,382.82 2,087,414.49 96.49 3.87% 2,122,879.00 5,105.83 1.03% 35,464.51 Aa1/AA+ AAA 3.48 3.15 3137FPHK4 FHMS K-098 A2 2.425 08/25/2029 1,600,000.00 09/03/2024 4.00% 1,488,375.00 1,518,432.68 95.07 3.90% 1,521,092.80 3,233.33 0.74% 2,660.12 Aa1/AA+ AAA 3.65 3.34 3137FPJG1 FHMS K-099 A2 2.595 09/25/2029 1,500,000.00 06/05/2025 4.21% 1,407,011.72 1,419,357.96 95.51 3.91% 1,432,642.50 3,243.75 0.70% 13,284.54 Aa1/AA+ AAA 3.73 3.40 3137FRUT6 FHMS K-106 A2 2.069 01/25/2030 2,000,000.00 06/06/2025 4.37% 1,810,078.13 1,833,347.84 92.97 3.95% 1,859,444.00 3,448.33 0.90% 26,096.16 Aa1/AA+ AAA 4.07 3.79 3137FTZQ3 FHMS K-110 A2 1.477 04/25/2030 1,500,000.00 09/03/2025 3.96% 1,348,652.34 1,359,099.51 90.51 3.97% 1,357,692.00 1,846.25 0.66% (1,407.51) Aa1/AA+ AAA 4.31 3.95 3137FWG79 FHMS K-115 A2 1.383 06/25/2030 2,000,000.00 12/10/2025 3.99% 1,787,343.75 1,789,563.00 89.45 3.99% 1,788,922.00 2,305.00 0.87% (641.00) Aa1/AA+ AAA 4.48 4.21 23,207,959.79 96.34 23,771,289.07 11.56%3.35 Total Agency CMBS 24,703,198.32 4.25%23,508,437.40 3.87%57,064.16 262,851.67 3.05 CASH CCYUSD Receivable 6,962.94 --6,962.94 6,962.94 1.00 6,962.94 0.00 0.00% 0.00 Aaa/AAA AAA 0.00 0.00 6,962.94 1.00 6,962.94 0.00%0.00 Total Cash 6,962.94 6,962.94 0.00 0.00 0.00 CORPORATE 89236TJK2 TOYOTA MOTOR CREDIT CORP 1.125 06/18/2026 1,385,000.00 06/15/2021 1.13% 1,384,390.60 1,384,943.93 98.79 3.80% 1,368,184.72 562.66 0.67% (16,759.22) A1/A+ A+ 0.46 0.45 57629WDE7 MASSMUTUAL GLOBAL FUNDING II 1.2 07/16/2026 1,000,000.00 08/19/2021 1.15% 1,002,230.00 1,000,244.45 98.54 3.96% 985,425.00 5,500.00 0.48% (14,819.45) Aa3/AA+ AA+ 0.54 0.53 58989V2D5 MET TOWER GLOBAL FUNDING 1.25 09/14/2026 770,000.00 09/07/2021 1.27% 769,291.60 769,900.68 98.18 3.90% 756,019.88 2,860.76 0.37% (13,880.80) Aa3/AA- AA- 0.70 0.68 931142ER0 WALMART INC 1.05 09/17/2026 350,000.00 09/08/2021 1.09% 349,338.50 349,906.17 98.21 3.63% 343,738.50 1,061.67 0.17% (6,167.67) Aa2/AA AA 0.71 0.69 37 134 HOLDINGS REPORT City of Cupertino | Account #10659 | As of December 31, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 59217GER6 METROPOLITAN LIFE GLOBAL FUNDING I 1.875 01/11/2027 1,115,000.00 01/03/2022 1.90% 1,113,728.90 1,114,738.96 97.99 3.89% 1,092,633.10 9,872.40 0.53% (22,105.86) Aa3/AA- AA- 1.03 0.99 808513BY0 CHARLES SCHWAB CORP 2.45 03/03/2027 960,000.00 03/01/2022 2.46% 959,729.90 959,933.12 98.42 3.84% 944,854.08 7,709.33 0.46% (15,079.04) A2/A- A 1.17 1.13 084664CZ2 BERKSHIRE HATHAWAY FINANCE CORP 2.3 03/15/2027 1,615,000.00 03/07/2022 2.30% 1,614,693.15 1,614,926.40 98.42 3.65% 1,589,560.52 10,937.14 0.77% (25,365.88) Aa2/AA A+ 1.20 1.16 14913UAL4 CATERPILLAR FINANCIAL SERVICES CORP 5.0 05/14/2027 1,000,000.00 05/10/2024 5.04% 998,930.00 999,512.93 101.66 3.74% 1,016,583.00 6,527.78 0.49% 17,070.08 A2/A A+ 1.37 1.31 24422EXZ7 JOHN DEERE CAPITAL CORP 4.65 01/07/2028 1,430,000.00 01/06/2025 4.66% 1,429,571.00 1,429,711.12 101.72 3.75% 1,454,598.86 32,139.25 0.71% 24,887.74 A1/A A+ 2.02 1.87 57636QAW4 MASTERCARD INC 4.875 03/09/2028 945,000.00 03/06/2023 4.90% 944,083.35 944,599.62 102.27 3.78% 966,493.08 14,332.50 0.47% 21,893.46 Aa3/A+ NA 2.19 1.96 61690U8E3 MORGAN STANLEY BANK NA 4.968 07/14/2028 1,950,000.00 07/17/2024 4.97% 1,950,000.00 1,950,000.00 101.39 4.27% 1,977,190.80 44,939.70 0.96% 27,190.80 Aa3/A+ AA- 2.54 1.43 69371RU20 PACCAR FINANCIAL CORP 4.0 11/07/2028 1,865,000.00 11/05/2025 4.02% 1,863,955.60 1,864,008.01 100.47 3.82% 1,873,718.88 11,190.00 0.91% 9,710.86 A1/A+ NA 2.85 2.65 74340XBL4 PROLOGIS LP 4.375 02/01/2029 1,500,000.00 07/18/2024 4.68% 1,481,235.00 1,487,244.78 100.96 4.04% 1,514,335.50 27,343.75 0.74% 27,090.72 A2/A NA 3.09 2.59 78016HZV5 ROYAL BANK OF CANADA 4.95 02/01/2029 2,000,000.00 10/31/2024 4.69% 2,019,920.00 2,014,455.79 102.65 4.03% 2,052,958.00 41,250.00 1.00% 38,502.21 A1/A AA- 3.09 2.79 743315AV5 PROGRESSIVE CORP 4.0 03/01/2029 1,500,000.00 07/16/2024 4.72% 1,455,495.00 1,469,547.82 100.18 3.94% 1,502,643.00 20,000.00 0.73% 33,095.18 A2/A A 3.16 2.69 64952WFG3 NEW YORK LIFE GLOBAL FUNDING 5.0 06/06/2029 1,000,000.00 07/01/2024 5.12% 994,880.00 996,438.76 102.62 4.17% 1,026,183.00 3,472.22 0.50% 29,744.24 Aa1/AA+ AAA 3.43 3.12 437076BY7 HOME DEPOT INC 2.95 06/15/2029 1,663,000.00 09/17/2024 3.93% 1,593,203.89 1,612,154.88 96.76 3.96% 1,609,157.05 2,180.38 0.78% (2,997.84) A2/A A 3.45 3.24 437076DC3 HOME DEPOT INC 4.75 06/25/2029 1,000,000.00 07/01/2024 4.93% 992,260.00 994,591.79 102.52 3.97% 1,025,244.00 791.67 0.50% 30,652.21 A2/A A 3.48 3.12 756109CB8 REALTY INCOME CORP 4.0 07/15/2029 1,463,000.00 08/08/2024 4.69% 1,419,212.41 1,431,612.01 99.51 4.15% 1,455,891.28 26,984.22 0.71% 24,279.28 A3/A- NA 3.54 3.20 713448FX1 PEPSICO INC 4.5 07/17/2029 1,500,000.00 07/15/2024 4.53% 1,497,675.00 1,498,353.66 101.96 3.90% 1,529,364.00 30,750.00 0.74% 31,010.34 A1/A+ NA 3.54 3.12 46647PAV8 JPMORGAN CHASE & CO 4.203 07/23/2029 1,500,000.00 09/17/2024 4.27% 1,496,610.00 1,497,744.83 100.32 4.37% 1,504,864.50 27,669.75 0.73% 7,119.67 A1/A AA- 3.56 2.36 38 135 HOLDINGS REPORT City of Cupertino | Account #10659 | As of December 31, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 06051GHM4 BANK OF AMERICA CORP 4.271 07/23/2029 1,500,000.00 09/17/2024 4.29% 1,498,710.00 1,499,141.84 100.46 4.39% 1,506,874.50 28,117.42 0.73% 7,732.66 A1/A- AA- 3.56 2.36 30303M8S4 META PLATFORMS INC 4.3 08/15/2029 912,000.00 08/12/2024 4.33% 910,584.09 910,974.90 101.20 3.94% 922,987.78 14,814.93 0.45% 12,012.88 Aa3/AA- NA 3.62 3.20 171239AL0 CHUBB INA HOLDINGS LLC 4.65 08/15/2029 1,750,000.00 -- 4.44% 1,765,746.34 1,761,599.83 102.21 3.99% 1,788,659.25 30,741.67 0.87% 27,059.42 A2/A A 3.62 3.19 91324PDS8 UNITEDHEALTH GROUP INC 2.875 08/15/2029 2,000,000.00 09/17/2024 3.94% 1,906,080.00 1,930,713.04 96.03 4.07% 1,920,526.00 21,722.22 0.93% (10,187.04) A2/A+ A 3.62 3.35 02665WFQ9 AMERICAN HONDA FINANCE CORP 4.4 09/05/2029 1,750,000.00 10/02/2024 4.29% 1,758,102.50 1,756,052.09 101.01 4.10% 1,767,669.75 24,811.11 0.86% 11,617.66 A3/A- NA 3.68 3.32 40139LBJ1 GUARDIAN LIFE GLOBAL FUNDING 4.179 09/26/2029 1,205,000.00 09/23/2024 4.18% 1,205,000.00 1,205,000.00 99.93 4.20% 1,204,202.29 13,288.64 0.59% (797.71) Aa1/AA+ NA 3.74 3.39 61748UAK8 MORGAN STANLEY 4.133 10/18/2029 1,470,000.00 10/17/2025 4.25% 1,470,184.60 1,470,172.60 99.97 4.27% 1,469,526.66 11,644.73 0.71% (645.94) A1/A- A+ 3.80 2.59 38141GD27 GOLDMAN SACHS GROUP INC 4.153 10/21/2029 1,025,000.00 10/14/2025 4.37% 1,025,000.00 1,025,000.00 99.98 4.27% 1,024,770.40 8,277.16 0.50% (229.60) A2/BBB+ A 3.80 2.60 14913UAU4 CATERPILLAR FINANCIAL SERVICES CORP 4.7 11/15/2029 1,200,000.00 11/14/2024 4.74% 1,198,092.00 1,198,522.50 102.60 3.97% 1,231,172.40 7,206.67 0.60% 32,649.90 A2/A A+ 3.87 3.50 64952WFK4 NEW YORK LIFE GLOBAL FUNDING 4.6 12/05/2029 1,365,000.00 12/02/2024 4.61% 1,364,221.95 1,364,388.98 101.57 4.16% 1,386,435.96 4,534.83 0.67% 22,046.98 Aa1/AA+ AAA 3.93 3.55 89236TNA9 TOYOTA MOTOR CREDIT CORP 4.95 01/09/2030 1,445,000.00 01/06/2025 5.00% 1,441,907.70 1,442,512.27 102.97 4.14% 1,487,865.93 34,174.25 0.72% 45,353.65 A1/A+ A+ 4.02 3.54 63743HFX5 NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP 4.95 02/07/2030 1,000,000.00 02/05/2025 4.88% 1,002,873.61 1,002,348.52 102.92 4.17% 1,029,175.00 19,800.00 0.50% 26,826.48 A2/NA A 4.10 3.55 571748CA8 MARSH & MCLENNAN COMPANIES INC 4.65 03/15/2030 1,400,000.00 03/11/2025 4.69% 1,397,340.00 1,397,762.92 102.00 4.12% 1,428,065.80 19,168.33 0.69% 30,302.88 A3/A- A- 4.20 3.67 57629TBX4 MASSMUTUAL GLOBAL FUNDING II 4.55 05/07/2030 1,000,000.00 05/01/2025 4.58% 998,670.00 998,844.08 100.94 4.31% 1,009,392.00 6,825.00 0.49% 10,547.92 Aa3/AA+ AA+ 4.35 3.89 66815L2W8 NORTHWESTERN MUTUAL GLOBAL FUNDING 4.6 06/03/2030 1,000,000.00 06/12/2025 4.51% 1,004,040.00 1,003,590.62 101.47 4.23% 1,014,740.00 3,577.78 0.49% 11,149.38 Aa1/AA+ AAA 4.42 3.96 828807DK0 SIMON PROPERTY GROUP LP 2.65 07/15/2030 2,000,000.00 08/19/2025 4.32% 1,853,380.00 1,864,356.02 93.64 4.21% 1,872,740.00 24,438.89 0.91% 8,383.98 A3/A NA 4.54 4.15 39 136 HOLDINGS REPORT City of Cupertino | Account #10659 | As of December 31, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 40139LBN2 GUARDIAN LIFE GLOBAL FUNDING 4.327 10/06/2030 1,500,000.00 09/30/2025 4.33% 1,500,000.00 1,500,000.00 100.18 4.28% 1,502,752.50 15,324.79 0.73% 2,752.50 Aa1/AA+ NA 4.76 4.22 24422EYF0 JOHN DEERE CAPITAL CORP 4.375 10/15/2030 1,000,000.00 11/04/2025 4.22% 1,006,920.00 1,006,701.47 101.05 4.13% 1,010,534.00 9,236.11 0.49% 3,832.53 A1/A A+ 4.79 4.25 141781CF9 CARGILL INC 4.125 10/23/2030 1,100,000.00 10/20/2025 4.14% 1,099,171.70 1,099,203.45 99.57 4.22% 1,095,233.70 8,570.83 0.53% (3,969.75) A2/A NA 4.81 4.29 30303MAB8 META PLATFORMS INC 4.2 11/15/2030 1,500,000.00 11/13/2025 4.16% 1,502,895.00 1,502,822.34 100.21 4.15% 1,503,169.50 10,150.00 0.73% 347.16 Aa3/AA- NA 4.87 4.27 74153WCZ0 PRICOA GLOBAL FUNDING I 4.35 11/25/2030 1,750,000.00 12/08/2025 4.36% 1,749,440.00 1,749,447.11 100.25 4.29% 1,754,408.25 7,612.50 0.85% 4,961.14 Aa3/NA AA- 4.90 4.35 Total Corporate 56,383,000.00 4.14% 55,988,793.39 56,073,724.28 100.29 4.07% 56,520,542.40 652,113.03 27.48% 446,818.12 3.31 2.86 MONEY MARKET FUND 992995944 WC MMF SWEEP 52,773.62 -- 1.80% 52,773.62 52,773.62 1.00 1.80% 52,773.62 0.00 0.03% 0.00 NA/NA NA 0.00 0.00 VP4520004 WF ADV 100% TREAS MM FD-SVC CL #008 1,163,773.36 -- 3.30% 1,163,773.36 1,163,773.36 1.00 3.30% 1,163,773.36 0.00 0.57% 0.00 Aaa/AAAm NA 0.00 0.00 Total Money Market Fund 1,216,546.98 3.24% 1,216,546.98 1,216,546.98 1.00 3.24% 1,216,546.98 0.00 0.59% 0.00 0.00 0.00 MUNICIPAL BONDS 13063EGT7 CALIFORNIA STATE 4.5 08/01/2029 1,740,000.00 10/30/2024 4.38% 1,749,169.80 1,746,933.00 102.47 3.76% 1,782,978.00 32,625.00 0.87% 36,045.00 Aa2/AA- AA 3.58 3.23 Total Municipal Bonds 1,740,000.00 4.38% 1,749,169.80 1,746,933.00 102.47 3.76% 1,782,978.00 32,625.00 0.87% 36,045.00 3.58 3.23 SUPRANATIONAL 4581X0DV7 INTER-AMERICAN DEVELOPMENT BANK 0.875 04/20/2026 2,460,000.00 04/13/2021 0.97% 2,448,733.20 2,459,327.45 99.14 3.77% 2,438,819.40 4,245.21 1.19% (20,508.05) Aaa/AAA NA 0.30 0.30 40 137 HOLDINGS REPORT City of Cupertino | Account #10659 | As of December 31, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 459058LN1 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM 3.875 10/16/2029 1,750,000.00 12/12/2024 4.25% 1,721,510.00 1,727,697.87 100.70 3.68% 1,762,246.50 14,122.50 0.86% 34,548.63 Aaa/AAA NA 3.79 3.47 459058LR2 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM 4.125 03/20/2030 1,700,000.00 03/14/2025 4.20% 1,694,220.00 1,695,128.47 101.49 3.74% 1,725,297.70 19,673.96 0.84% 30,169.23 Aaa/AAA NA 4.22 3.80 Total Supranational 5,910,000.00 2.89% 5,864,463.20 5,882,153.79 100.29 3.73% 5,926,363.60 38,041.67 2.88% 44,209.81 2.48 2.26 US TREASURY 91282CBH3 UNITED STATES TREASURY 0.375 01/31/2026 2,500,000.00 05/27/2021 0.75% 2,456,445.31 2,499,235.44 99.74 3.68% 2,493,505.00 3,923.23 1.21% (5,730.44) Aa1/AA+ AA+ 0.08 0.08 91282CBW0 UNITED STATES TREASURY 0.75 04/30/2026 2,500,000.00 05/27/2021 0.80% 2,493,652.34 2,499,579.88 99.08 3.59% 2,477,082.50 3,211.33 1.20% (22,497.38) Aa1/AA+ AA+ 0.33 0.32 91282CCZ2 UNITED STATES TREASURY 0.875 09/30/2026 1,400,000.00 10/18/2021 1.19% 1,379,054.68 1,396,847.19 98.03 3.59% 1,372,375.20 3,129.81 0.67% (24,471.99) Aa1/AA+ AA+ 0.75 0.73 91282CDG3 UNITED STATES TREASURY 1.125 10/31/2026 1,400,000.00 11/15/2021 1.25% 1,391,468.75 1,398,571.05 97.99 3.62% 1,371,836.20 2,697.51 0.67% (26,734.85) Aa1/AA+ AA+ 0.83 0.81 91282CJP7 UNITED STATES TREASURY 4.375 12/15/2026 2,500,000.00 12/28/2023 4.01% 2,525,097.66 2,508,072.08 100.78 3.53% 2,519,610.00 5,108.17 1.23% 11,537.92 Aa1/AA+ AA+ 0.96 0.92 91282CKJ9 UNITED STATES TREASURY 4.5 04/15/2027 2,300,000.00 04/17/2024 4.77% 2,283,109.38 2,292,745.70 101.23 3.51% 2,328,301.50 22,178.57 1.13% 35,555.80 Aa1/AA+ AA+ 1.29 1.23 91282CKR1 UNITED STATES TREASURY 4.5 05/15/2027 3,200,000.00 05/08/2024 4.65% 3,186,500.00 3,193,847.95 101.33 3.49% 3,242,499.20 18,696.13 1.58% 48,651.25 Aa1/AA+ AA+ 1.37 1.31 91282CEW7 UNITED STATES TREASURY 3.25 06/30/2027 3,250,000.00 -- 3.18% 3,260,312.50 3,252,999.46 99.66 3.49% 3,238,829.75 291.78 1.57% (14,169.71) Aa1/AA+ AA+ 1.50 1.45 91282CFB2 UNITED STATES TREASURY 2.75 07/31/2027 400,000.00 08/22/2022 3.12% 393,218.75 397,833.61 98.87 3.49% 395,484.40 4,603.26 0.19% (2,349.21) Aa1/AA+ AA+ 1.58 1.51 91282CFH9 UNITED STATES TREASURY 3.125 08/31/2027 4,500,000.00 -- 3.28% 4,468,902.34 4,489,607.48 99.43 3.48% 4,474,161.00 47,781.42 2.18% (15,446.48) Aa1/AA+ AA+ 1.67 1.58 91282CFM8 UNITED STATES TREASURY 4.125 09/30/2027 3,450,000.00 -- 4.31% 3,421,152.34 3,439,772.57 101.07 3.48% 3,486,925.35 36,360.06 1.70% 47,152.78 Aa1/AA+ AA+ 1.75 1.65 91282CFZ9 UNITED STATES TREASURY 3.875 11/30/2027 850,000.00 12/05/2022 3.81% 852,656.25 851,018.71 100.71 3.49% 856,042.65 2,895.60 0.42% 5,023.94 Aa1/AA+ AA+ 1.91 1.82 41 138 HOLDINGS REPORT City of Cupertino | Account #10659 | As of December 31, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 91282CGC9 UNITED STATES TREASURY 3.875 12/31/2027 2,750,000.00 -- 3.67% 2,775,107.42 2,760,179.85 100.75 3.48% 2,770,517.75 294.37 1.35% 10,337.90 Aa1/AA+ AA+ 2.00 1.91 91282CGH8 UNITED STATES TREASURY 3.5 01/31/2028 3,000,000.00 02/07/2023 3.81% 2,957,929.69 2,982,412.85 100.02 3.49% 3,000,585.00 43,940.22 1.46% 18,172.15 Aa1/AA+ AA+ 2.08 1.96 91282CGP0 UNITED STATES TREASURY 4.0 02/29/2028 3,700,000.00 -- 4.01% 3,699,113.28 3,699,674.36 101.04 3.49% 3,738,591.00 50,287.29 1.82% 38,916.64 Aa1/AA+ AA+ 2.16 2.03 91282CNY3 UNITED STATES TREASURY 3.375 09/15/2028 5,000,000.00 10/28/2025 3.50% 4,982,812.50 4,983,858.13 99.59 3.53% 4,979,490.00 50,345.30 2.42% (4,368.13) Aa1/AA+ AA+ 2.71 2.53 91282CKG5 UNITED STATES TREASURY 4.125 03/31/2029 2,300,000.00 04/17/2024 4.62% 2,249,867.19 2,267,141.94 101.66 3.58% 2,338,094.90 24,240.04 1.14% 70,952.96 Aa1/AA+ AA+ 3.25 2.99 91282CKX8 UNITED STATES TREASURY 4.25 06/30/2029 2,000,000.00 07/01/2024 4.41% 1,985,546.88 1,989,889.16 102.11 3.60% 2,042,266.00 234.81 0.99% 52,376.84 Aa1/AA+ AA+ 3.50 3.23 91282CLK5 UNITED STATES TREASURY 3.625 08/31/2029 3,500,000.00 09/11/2024 3.45% 3,527,480.47 3,520,280.68 99.98 3.63% 3,499,454.00 43,109.46 1.70% (20,826.68) Aa1/AA+ AA+ 3.67 3.36 91282CLN9 UNITED STATES TREASURY 3.5 09/30/2029 5,000,000.00 -- 3.83% 4,925,039.06 4,943,454.63 99.54 3.63% 4,976,760.00 44,711.54 2.42% 33,305.38 Aa1/AA+ AA+ 3.75 3.45 91282CLR0 UNITED STATES TREASURY 4.125 10/31/2029 3,000,000.00 10/31/2024 4.17% 2,993,789.06 2,995,238.85 101.71 3.64% 3,051,327.00 21,194.75 1.48% 56,088.15 Aa1/AA+ AA+ 3.83 3.49 91282CMD0 UNITED STATES TREASURY 4.375 12/31/2029 4,400,000.00 -- 4.53% 4,369,171.88 4,375,142.13 102.67 3.65% 4,517,563.60 531.77 2.20% 142,421.47 Aa1/AA+ AA+ 4.00 3.65 91282CMG3 UNITED STATES TREASURY 4.25 01/31/2030 4,000,000.00 02/07/2025 4.34% 3,983,906.25 3,986,786.46 102.22 3.66% 4,088,908.00 71,141.30 1.99% 102,121.54 Aa1/AA+ AA+ 4.08 3.66 91282CGQ8 UNITED STATES TREASURY 4.0 02/28/2030 4,500,000.00 -- 4.01% 4,496,958.99 4,497,406.61 101.27 3.67% 4,557,303.00 61,160.22 2.22% 59,896.39 Aa1/AA+ AA+ 4.16 3.75 91282CNK3 UNITED STATES TREASURY 3.875 06/30/2030 5,000,000.00 -- 3.78% 5,020,507.81 5,020,243.58 100.75 3.69% 5,037,695.00 535.22 2.45% 17,451.42 Aa1/AA+ AA+ 4.50 4.09 91282CHR5 UNITED STATES TREASURY 4.0 07/31/2030 5,000,000.00 10/23/2025 3.59% 5,089,062.50 5,085,532.74 101.27 3.70% 5,063,475.00 83,695.65 2.46% (22,057.74) Aa1/AA+ AA+ 4.58 4.09 91282CNX5 UNITED STATES TREASURY 3.625 08/31/2030 5,000,000.00 -- 3.66% 4,991,425.79 4,992,028.88 99.64 3.71% 4,982,225.00 61,584.94 2.42% (9,803.88) Aa1/AA+ AA+ 4.67 4.20 91282CPA3 UNITED STATES TREASURY 3.625 09/30/2030 5,000,000.00 -- 3.59% 5,008,789.06 5,008,445.18 99.61 3.71% 4,980,665.00 46,308.38 2.42% (27,780.18) Aa1/AA+ AA+ 4.75 4.28 91282CPN5 UNITED STATES TREASURY 3.5 11/30/2030 1,750,000.00 12/15/2025 3.73% 1,731,816.41 1,731,977.15 98.99 3.73% 1,732,363.50 5,384.62 0.84% 386.35 Aa1/AA+ AA+ 4.91 4.45 42 139 HOLDINGS REPORT City of Cupertino | Account #10659 | As of December 31, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration Total US Treasury 93,150,000.00 3.65% 92,899,894.54 93,059,824.27 100.51 3.60% 93,613,936.50 759,576.78 45.52% 554,112.23 2.99 2.74 Total Portfolio 205,673,731.74 3.95% 203,529,920.42 204,078,590.52 99.46 3.78% 205,668,734.88 1,621,951.12 100.00% 1,590,144.36 3.05 2.63 Total Market Value + Accrued 207,290,686.00 43 140 HOLDINGS REPORT City of Cupertino Reporting | Account #10663 | As of December 31, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration CASH 90CASH$00 Wells Fargo Government Advantage Checking 7,023,661.05 -- 0.00% 7,023,661.05 7,023,661.05 1.00 0.00% 7,023,661.05 0.00 8.67% 0.00 NA/NA NA 0.00 0.00 90CASH$02 Wells Fargo WC Distribution Account 19,224.61 -- 0.00% 19,224.61 19,224.61 1.00 0.00% 19,224.61 0.00 0.02% 0.00 NA/NA NA 0.00 0.00 CCYUSD Receivable 713,820.82 --713,820.82 713,820.82 1.00 713,820.82 0.00 0.88% 0.00 Aaa/AAA AAA 0.00 0.00 Total Cash 7,756,706.48 0.00% 7,756,706.48 7,756,706.48 1.00 0.00% 7,756,706.48 0.00 9.58% 0.00 0.00 0.00 LAIF 90LAIF$00 Local Agency Investment Fund State Pool 73,252,391.03 -- 3.98% 73,252,391.03 73,252,391.03 1.00 3.98% 73,252,391.03 0.00 90.42% 0.00 NA/NA NA 0.00 0.00 Total LAIF 73,252,391.03 3.98% 73,252,391.03 73,252,391.03 1.00 3.98% 73,252,391.03 0.00 90.42% 0.00 0.00 0.00 Total Portfolio 81,009,097.51 3.63% 81,009,097.51 81,009,097.51 1.00 3.63% 81,009,097.51 0.00 100.00% 0.00 0.00 0.00 Total Market Value + Accrued 81,009,097.51 44 141 TRANSACTIONS 45 142 TRANSACTION LEDGER City of Cupertino | Account #10659|10/01/2025 Through 12/31/2025| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss ACQUISITIONS Purchase 10/10/2025 17305EHA6 1,500,000.00 CCCIT 2025-A1 A1 4.3 06/21/2030 101.000 3.90%(1,515,000.00)(18,633.33)(1,533,633.33)0.00 Purchase 10/15/2025 05594HAD5 1,050,000.00 BMWLT 2025-2 A3 3.97 09/25/2028 100.000 4.32%(1,049,997.06)0.00 (1,049,997.06)0.00 Purchase 10/21/2025 38141GD27 1,025,000.00 GOLDMAN SACHS GROUP INC 4.153 10/21/2029 100.000 4.37%(1,025,000.00)0.00 (1,025,000.00)0.00 Purchase 10/21/2025 91282CPA3 2,500,000.00 UNITED STATES TREASURY 3.625 09/30/2030 100.184 3.58%(2,504,589.84)(5,228.37)(2,509,818.21)0.00 Purchase 10/22/2025 58770XAD5 1,045,000.00 MBALT 2025-B A3 3.88 04/16/2029 99.984 4.57%(1,044,828.52)0.00 (1,044,828.52)0.00 Purchase 10/22/2025 61748UAK8 710,000.00 MORGAN STANLEY 4.133 10/18/2029 100.026 4.12%(710,184.60)0.00 (710,184.60)0.00 Purchase 10/22/2025 61748UAK8 760,000.00 MORGAN STANLEY 4.133 10/18/2029 100.000 4.36%(760,000.00)0.00 (760,000.00)0.00 Purchase 10/23/2025 141781CF9 165,000.00 CARGILL INC 4.125 10/23/2030 99.741 4.18%(164,572.65)0.00 (164,572.65)0.00 Purchase 10/23/2025 141781CF9 275,000.00 CARGILL INC 4.125 10/23/2030 99.982 4.13%(274,950.50)0.00 (274,950.50)0.00 Purchase 10/23/2025 141781CF9 385,000.00 CARGILL INC 4.125 10/23/2030 99.928 4.14%(384,722.80)0.00 (384,722.80)0.00 Purchase 10/23/2025 141781CF9 275,000.00 CARGILL INC 4.125 10/23/2030 99.973 4.13%(274,925.75)0.00 (274,925.75)0.00 Purchase 10/24/2025 91282CNX5 2,000,000.00 UNITED STATES TREASURY 3.625 08/31/2030 100.160 3.59%(2,003,203.13)(10,814.92)(2,014,018.05)0.00 Purchase 10/24/2025 91282CHR5 5,000,000.00 UNITED STATES TREASURY 4.0 07/31/2030 101.781 3.59%(5,089,062.50)(46,195.65)(5,135,258.15)0.00 Purchase 10/24/2025 91282CPA3 2,500,000.00 UNITED STATES TREASURY 3.625 09/30/2030 100.168 3.59%(2,504,199.22)(5,975.27)(2,510,174.49)0.00 46 143 TRANSACTION LEDGER City of Cupertino | Account #10659|10/01/2025 Through 12/31/2025| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss Purchase 10/29/2025 91282CNK3 2,500,000.00 UNITED STATES TREASURY 3.875 06/30/2030 101.164 3.60%(2,529,101.56)(31,852.92)(2,560,954.48)0.00 Purchase 10/29/2025 91282CNY3 5,000,000.00 UNITED STATES TREASURY 3.375 09/15/2028 99.656 3.50%(4,982,812.50)(20,511.05)(5,003,323.55)0.00 Purchase 11/05/2025 24422EYF0 1,000,000.00 JOHN DEERE CAPITAL CORP 4.375 10/15/2030 100.692 4.22%(1,006,920.00)(2,430.56)(1,009,350.56)0.00 Purchase 11/07/2025 69371RU20 1,865,000.00 PACCAR FINANCIAL CORP 4.0 11/07/2028 99.944 4.02%(1,863,955.60)0.00 (1,863,955.60)0.00 Purchase 11/17/2025 30303MAB8 1,500,000.00 META PLATFORMS INC 4.2 11/15/2030 100.193 4.16%(1,502,895.00)(2,450.00)(1,505,345.00)0.00 Purchase 12/09/2025 74153WCZ0 1,750,000.00 PRICOA GLOBAL FUNDING I 4.35 11/25/2030 99.968 4.36%(1,749,440.00)(2,960.42)(1,752,400.42)0.00 Purchase 12/15/2025 3137FWG79 2,000,000.00 FHMS K-115 A2 1.383 06/25/2030 89.367 3.99%(1,787,343.75)(1,075.67)(1,788,419.42)0.00 Purchase 12/16/2025 91282CPN5 1,750,000.00 UNITED STATES TREASURY 3.5 11/30/2030 98.961 3.73%(1,731,816.41)(2,692.31)(1,734,508.72)0.00 Total Purchase 36,555,000.00 (36,459,521.39)(150,820.47)(36,610,341.86)0.00 TOTAL ACQUISITIONS 36,555,000.00 (36,459,521.39)(150,820.47)(36,610,341.86)0.00 DISPOSITIONS Maturity 10/28/2025 459058JL8 (1,400,000.00) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM 0.5 10/28/2025 100.000 0.60%1,400,000.00 0.00 1,400,000.00 0.00 Maturity 10/31/2025 91282CAT8 (1,950,000.00) UNITED STATES TREASURY 0.25 10/31/2025 100.000 0.49%1,950,000.00 0.00 1,950,000.00 0.00 Maturity 11/30/2025 91282CAZ4 (2,250,000.00) UNITED STATES TREASURY 0.375 11/30/2025 100.000 0.76%2,250,000.00 0.00 2,250,000.00 0.00 47 144 TRANSACTION LEDGER City of Cupertino | Account #10659|10/01/2025 Through 12/31/2025| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss Total Maturity (5,600,000.00)5,600,000.00 0.00 5,600,000.00 0.00 Sale 11/14/2025 023135BX3 (1,875,000.00)AMAZON.COM INC 1.0 05/12/2026 98.563 1.09%1,848,056.25 104.17 1,848,160.42 (26,149.72) Sale 12/16/2025 91324PEC2 (1,035,000.00)UNITEDHEALTH GROUP INC 1.15 05/15/2026 98.876 1.37%1,023,366.60 1,024.94 1,024,391.54 (10,689.40) Total Sale (2,910,000.00)2,871,422.85 1,129.11 2,872,551.96 (36,839.12) TOTAL DISPOSITIONS (8,510,000.00)8,471,422.85 1,129.11 8,472,551.96 (36,839.12) 48 145 TRANSACTION LEDGER City of Cupertino Reporting | Account #10663|10/01/2025 Through 12/31/2025| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss ACQUISITIONS Purchase 10/15/2025 90LAIF$00 751,567.92 Local Agency Investment Fund State Pool 1.000 4.15%(751,567.92)0.00 (751,567.92)0.00 Purchase 11/30/2025 90LAIF$00 10,500,000.00 Local Agency Investment Fund State Pool 1.000 4.09%(10,500,000.00)0.00 (10,500,000.00)0.00 Total Purchase 11,251,567.92 (11,251,567.92)0.00 (11,251,567.92)0.00 TOTAL ACQUISITIONS 11,251,567.92 (11,251,567.92)0.00 (11,251,567.92)0.00 DISPOSITIONS Sale 10/31/2025 90LAIF$00 (5,700,000.00) Local Agency Investment Fund State Pool 1.000 4.13%5,700,000.00 0.00 5,700,000.00 0.00 Sale 12/31/2025 90LAIF$00 (1,100,000.00) Local Agency Investment Fund State Pool 1.000 3.98%1,100,000.00 0.00 1,100,000.00 0.00 Total Sale (6,800,000.00)6,800,000.00 0.00 6,800,000.00 0.00 TOTAL DISPOSITIONS (6,800,000.00)6,800,000.00 0.00 6,800,000.00 0.00 49 146 IMPORTANT DISCLOSURES City of Cupertino | As of December 31, 2025 2025 Chandler Asset Management, Inc, An Independent Registered Investment Adviser. Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index. Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services. This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates. Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy. Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest. 50 147 BENCHMARK DISCLOSURES City of Cupertino | Account #10659 | As of December 31, 2025 Benchmark Disclosure ICE BofA 1-5 Yr US Treasury & Agency Index The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 51 148 INVESTMENT AND INSURANCE PRODUCTS ARE:·NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY FEDERAL GOVERNMENT AGENCY·NOT A DEPOSIT, OBLIGATION OF, OR GUARANTEED BY ANY BANK OR BANKING AFFILIATE·SUBJECT TO INVESTMENT RISKS AND MAY LOSE VALUE, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED PCS - SAN FRANCISCO CA 510 N VALLEY MILLS DRIVE, SUITE 400 WACO, TX 76710-6075 CITY OF CUPERTINO - CHANDLER ASSET MANAGEMENT ACCOUNT NUMBER MONTHLY STAT DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT MANAGER: MICHAEL J WADE TELEPHONE NUMBER: 515-878-6110 PFGEDD INVESTMENT CONTACT: IMR/DEREK JOHNSON TELEPHONE NUMBER: ADMINISTRATOR: BELINDA CONWAY TELEPHONE NUMBER: 254-265-6137 00126 SE 149 Custody and trust services are provided by Principal Bank®, Member FDIC, and/or Principal Trust Company®. These services are provided under the trade name Principal® Custody Solutions. Principal Trust Company is a trade name of Delaware Charter Guarantee & Trust Company. Principal Bank and Principal Trust Company are members of the Principal Financial Group®, Des Moines, IA 50392. ASSET VALUATION PRACTICES VALUES REFLECTED FOR PUBLICLY TRADED ASSETS ARE OBTAINED FROM UNAFFILIATED SOURCES. IN SITUATIONS WHERE AN ASSET VALUE CANNOT BE PROVIDED BY OUR UNAFFILIATED PRICING SOURCES, SUCH AS BUT NOT LIMITED TO NON-PUBLICLY TRADED ASSETS, THE CUSTOMER OR THEIR DESIGNATED REPRESENTATIVE MUST PROVIDE THE UPDATED VALUE. IF PRINCIPAL CUSTODY SOLUTIONS DOES NOT RECEIVE AN UPDATED VALUE, OR IS UNABLE TO USE THE VALUE PROVIDED, THE LAST REPORTED VALUE WILL CONTINUE TO BE REPORTED. TRADE CONFIRMS PURSUANT TO FEDERAL REGULATION, MONTHLY OR QUARTERLY ACCOUNT STATEMENTS THAT INCLUDE INVESTMENT TRANSACTION DETAILS MAY BE PROVIDED IN LIEU OF SEPARATE TRADE CONFIRMATIONS. SEPARATE TRADE CONFIRMS MAY BE OBTAINED AT NO ADDITIONAL COST UPON WRITTEN REQUEST TO THE ACCOUNT MANAGER. UNCLAIMED PROPERTY DESIGNATED REPRESENTATIVE NOTIFICATION YOUR PROPERTY MAY BE TRANSFERRED TO THE APPROPRIATE STATE IF NO ACTIVITY OCCURS IN THE ACCOUNT WITHIN THE TIME PERIOD SPECIFIED BY STATE LAW. IF YOUR STATE OF RESIDENCE ALLOWS, YOU MAY DESIGNATE A REPRESENTATIVE FOR THE PURPOSE OF RECEIVING NOTICE OF ACCOUNT INACTIVITY BY PROVIDING THE NAME AND MAILING OR EMAIL ADDRESS OF A REPRESENTATIVE. THE DESIGNATED REPRESENTATIVE DOES NOT HAVE ANY RIGHTS TO YOUR ACCOUNT. PLEASE REFER TO YOUR STATE'S UNCLAIMED PROPERTY WEBSITE FOR MORE INFORMATION AND INSTRUCTIONS ON HOW TO DESIGNATE A REPRESENTATIVE FOR NOTICE. 150 TABLE OF CONTENTS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ PAGE REPORT NAME NUMBER ___________ ______ ASSET SUMMARY .................................................................................. 1 STATEMENT OF ASSETS AND LIABILITIES ............................................................ 2 CASH SUMMARY ................................................................................... 19 STATEMENT OF TRANSACTIONS ...................................................................... 20 151 PAGE 1 ASSET SUMMARY CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ ASSET SUMMARY % TOTAL UNREALIZED ESTIMATED CURRENT ACCRUED INVESTMENT CATEGORY COST VALUE MARKET VALUE MARKET GAIN/LOSS ANNUAL INCOME YIELD INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH 0.00 0.00 0.00 CASH EQUIVALENTS 1,216,546.98 1,216,546.98 0.59 0.00 39,405 3.24 6,962.94 BONDS AND NOTES 202,306,410.52 204,445,216.25 99.41 2,138,805.73 7,562,917 3.70 1,622,304.59 ===================================================================================================================================== TOTAL INVESTMENTS 203,522,957.50 205,661,763.23 100.00 2,138,805.73 7,602,323 3.70 1,629,267.53 TOTAL ACCRUALS 1,629,267.53 1,629,267.53 ===================================================================================================================================== TOTAL ACCRUALS AND INVESTMENTS 205,152,225.03 207,291,030.76 2,138,805.73 7,602,323 3.70 1,629,267.53 152 PAGE 2 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH EQUIVALENTS______________________________________________________________________________________________________________________________________ 1,163,773.36 ALLSPRING 100% TREASURY 1,163,773.36 1,163,773.36 0.57 0.00 6,878.80 MONEY MARKET FUND - #008 1.0000 1.0000 52,773.62 PRINCIPAL PUBLIC DEPOSIT SWEEP 52,773.62 52,773.62 0.03 0.00 84.14 PROGRAM 1.0000 1.0000 ====================================================================================================================================== TOTAL CASH EQUIVALENTS 1,216,546.98 1,216,546.98 0.59 0.00 6,962.94 BOND & NOTES______________________________________________________________________________________________________________________________________ 1,420,000 AMERICAN EXPRESS CREDIT ACCOUNT 1,419,974.30 1,436,202.20 0.70 16,227.90 2,701.16 ASSET BCKD SEC SER 2025-2 CL A 99.9982 101.1410 DTD 05/13/2025 4.280% 04/15/2030 NON CALLABLE CUSIP 02582JKP4 1,750,000 AMERICAN HONDA FINANCE 1,758,102.50 1,767,675.00 0.86 9,572.50 24,811.11 MEDIUM TERM NOTE 100.4630 101.0100 DTD 09/05/2024 4.400% 09/05/2029 NON CALLABLE MOODY'S RATING A3 CUSIP 02665WFQ9 1,500,000 BANK OF AMERICA CORP 1,498,710.00 1,506,870.00 0.73 8,160.00 28,117.42 DTD 07/23/18 07/23/2029 99.9140 100.4580 MOODY'S RATING A1 CUSIP 06051GHM4 850,000 BANK OF AMERICA CREDIT CARD TRUST 858,798.83 858,823.00 0.42 24.17 1,881.33 ASSET BCKD SEC SER 2023-A2 CL A2 101.0352 101.0380 DTD 12/14/2023 4.980% 11/15/2028 NON CALLABLE MOODY'S RATING AAA CUSIP 05522RDH8 153 PAGE 3 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 785,000 BANK OF AMERICA CREDIT CARD TRUST 784,955.96 797,300.95 0.39 12,344.99 1,720.02 ASSET BCKD SEC SER 2024-A1 CL A 99.9944 101.5670 DTD 06/13/2024 4.930% 05/15/2029 NON CALLABLE MOODY'S RATING AAA CUSIP 05522RDJ4 1,615,000 BERKSHIRE HATHAWAY FIN 1,614,693.15 1,589,563.75 0.77 25,129.40- 10,937.14 DTD 03/15/2022 2.300% 03/15/2027 99.9810 98.4250 CALLABLE MOODY'S RATING AA2 CUSIP 084664CZ2 1,050,000 BMW VEHICLE LEASE TRUST 1,049,997.06 1,052,814.00 0.51 2,816.94 694.75 ASSET BCKD SEC SER 2025-2 CL A3 99.9997 100.2680 DTD 10/15/2025 3.970% 09/25/2028 CALLABLE CUSIP 05594HAD5 685,001.19 BMW VEHICLE OWNER TRUST 684,897.14 691,255.25 0.34 6,358.11 591.38 ASSET BCKD SEC SER 2024-A CL A3 99.9848 100.9130 DTD 06/11/2024 5.180% 02/26/2029 CALLABLE MOODY'S RATING AAA CUSIP 096919AD7 1,740,000 CALIFORNIA STATE 1,749,169.80 1,782,978.00 0.87 33,808.20 32,625.00 GENERAL OBLIGATION 100.5270 102.4700 DTD 11/05/2024 4.500% 08/01/2029 NON CALLABLE MOODY'S RATING AA2 CUSIP 13063EGT7 1,100,000 CARGILL INC 1,099,171.70 1,095,237.00 0.53 3,934.70- 8,570.83 DTD 10/23/2025 4.125% 10/23/2030 99.9247 99.5670 CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING A2 CUSIP 141781CF9 154 PAGE 4 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,000,000 CATERPILLAR FINL SERVICE 998,930.00 1,016,580.00 0.49 17,650.00 6,527.78 MEDIUM TERM NOTE 99.8930 101.6580 DTD 05/14/2024 5.000% 05/14/2027 NON CALLABLE MOODY'S RATING A2 CUSIP 14913UAL4 1,200,000 CATERPILLAR FINL SVCS 1,198,092.00 1,231,176.00 0.60 33,084.00 7,206.67 DTD 11/15/2024 4.700% 11/15/2029 99.8410 102.5980 NON CALLABLE MOODY'S RATING A2 CUSIP 14913UAU4 960,000 CHARLES SCHWAB CORP 959,729.90 944,851.20 0.46 14,878.70- 7,709.33 DTD 03/03/2022 2.450% 03/03/2027 99.9719 98.4220 CALLABLE MOODY'S RATING A2 CUSIP 808513BY0 1,690,000 CHASE ISSUANCE TRUST 1,689,742.61 1,705,142.40 0.83 15,399.79 3,455.11 ASSET BCKD SEC SER 2024-A1I CL A 99.9848 100.8960 DTD 01/31/2024 4.600% 01/16/2029 NON CALLABLE CUSIP 161571HV9 1,750,000 CHUBB INA HOLDINGS LLC 1,765,746.34 1,788,657.50 0.87 22,911.16 30,741.67 DTD 07/31/2024 4.650% 08/15/2029 100.8998 102.2090 CALLABLE MOODY'S RATING A2 CUSIP 171239AL0 1,500,000 CITIBANK CREDIT CARD ISSURANCE 1,515,000.00 1,517,415.00 0.74 2,415.00 1,791.67 ASSET BCKD SEC SER 2025-A1 CL A 101.0000 101.1610 DTD 06/26/2025 4.300% 06/21/2030 NON CALLABLE MOODY'S RATING AAA CUSIP 17305EHA6 155 PAGE 5 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,288,000 FED HOME LN MTG CORP 1,228,178.44 1,276,330.72 0.62 48,152.28 3,824.29 SER K089 CL A2 *24 DAY DELAY* 95.3555 99.0940 DTD 03/01/19 3.563 01/25/2029 CUSIP 3137FL6P4 1,971,885.56 FED HOME LN MTG CORP 1,902,407.41 1,919,196.78 0.93 16,789.37 4,900.14 SER K093 CL A2 *24 DAY DELAY* 96.4766 97.3280 DTD 06/01/19 2.982 05/25/2029 CUSIP 3137FMCR1 1,500,000 FED HOME LN MTG CORP 1,407,011.72 1,432,650.00 0.70 25,638.28 3,243.75 SER K099 CL A2 *24 DAY DELAY* 93.8008 95.5100 DTD 10/01/19 2.595 09/25/2029 CUSIP 3137FPJG1 2,800,000 FEDERAL FARM CREDIT BANK 2,789,612.00 2,855,664.00 1.39 66,052.00 16,547.22 DTD 11/15/2023 4.625% 11/15/2027 99.6290 101.9880 NON CALLABLE MOODY'S RATING AA1 CUSIP 3133EPC60 2,400,000 FEDERAL FARM CREDIT BANK 2,412,552.00 2,439,168.00 1.19 26,616.00 17,416.67 DTD 05/06/2024 4.750% 05/06/2027 100.5230 101.6320 NON CALLABLE MOODY'S RATING AA1 CUSIP 3133ERDS7 1,875,000 FEDERAL HOME LOAN BANK 1,870,050.00 1,906,556.25 0.93 36,506.25 20,286.46 DTD 04/11/2024 4.750% 04/09/2027 99.7360 101.6830 NON CALLABLE MOODY'S RATING AA1 CUSIP 3130B0TY5 1,500,000 FEDERAL HOME LOAN MORTGAGE CORP 1,348,652.34 1,357,695.00 0.66 9,042.66 1,846.25 CMO SER 2020-K110 CL A2 89.9102 90.5130 DTD 06/01/2020 1.477% 04/25/2030 NON CALLABLE CUSIP 3137FTZQ3 156 PAGE 6 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,000,000 FEDERAL HOME LOAN MORTGAGE CORP 1,787,343.75 1,788,920.00 0.87 1,576.25 2,305.00 CMO SER 2020-K115 CL A2 89.3672 89.4460 DTD 09/01/2020 1.383% 06/25/2030 NON CALLABLE CUSIP 3137FWG79 2,000,000 FEDERAL HOME LOAN MORTGAGE CORP 1,801,718.75 1,910,220.00 0.93 108,501.25 3,766.67 CMO SER K748 CL A2 90.0860 95.5110 DTD 03/01/2022 2.260% 01/25/2029 NON CALLABLE CUSIP 3137H5YC5 650,000 FHLMC MULTIFAMILY STRUCTURED P 687,451.17 644,429.50 0.31 43,021.67- 1,437.04 SER K058 CL A2 *24 DAY DELAY* 105.7617 99.1430 DTD 11/01/16 2.653 08/25/2026 CUSIP 3137BSP72 1,000,000 FHLMC MULTIFAMILY STRUCTURED P 950,664.06 991,220.00 0.48 40,555.94 2,703.33 SER K068 CL A2 *24 DAY DELAY* 95.0664 99.1220 DTD 10/01/17 3.244 08/25/2027 MOODY'S RATING AAA CUSIP 3137FBBX3 1,943,312.76 FHLMC MULTIFAMILY STRUCTURED P 1,859,127.85 1,938,182.41 0.94 79,054.56 6,106.86 SER K087 CL A2 *24 DAY DELAY* 95.6680 99.7360 DTD 01/01/19 3.771 12/25/2028 CUSIP 3137FKUP9 2,550,000 FHLMC MULTIFAMILY STRUCTURED P 2,465,830.08 2,536,944.00 1.23 71,113.92 7,841.25 SER K088 CL A2 *24 DAY DELAY* 96.6992 99.4880 DTD 03/01/19 3.690 01/25/2029 MOODY'S RATING AAA CUSIP 3137FKZZ2 2,500,000 FHLMC MULTIFAMILY STRUCTURED P 2,431,738.28 2,472,075.00 1.20 40,336.72 7,302.08 SER K091 CL A2 *24 DAY DELAY* 97.2695 98.8830 DTD 04/01/19 3.505 03/25/2029 CUSIP 3137FLN91 157 PAGE 7 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,200,000 FHLMC MULTIFAMILY STRUCTURED P 2,039,382.82 2,122,890.00 1.03 83,507.18 5,105.83 SER K095 CL A2 *24 DAY DELAY* 92.6992 96.4950 DTD 08/01/19 2.785 06/25/2029 CUSIP 3137FNAE0 1,600,000 FHLMC MULTIFAMILY STRUCTURED P 1,488,375.00 1,521,088.00 0.74 32,713.00 3,233.33 SER K098 CL A2 *24 DAY DELAY* 93.0235 95.0680 DTD 10/01/19 2.425 08/25/2029 CUSIP 3137FPHK4 2,000,000 FHLMC MULTIFAMILY STRUCTURED P 1,810,078.13 1,859,440.00 0.90 49,361.87 3,448.33 SER K106 CL A2 *24 DAY DELAY* 90.5039 92.9720 DTD 03/01/20 2.069 01/25/2030 CUSIP 3137FRUT6 1,085,959.77 GM FINANCIAL SECURITIZED TERM 1,084,237.70 1,092,584.12 0.53 8,346.42 2,194.54 ASSET BCKD SEC SER 2024-1 CL A3 99.8414 100.6100 DTD 01/17/2024 4.850% 12/18/2028 CALLABLE MOODY'S RATING AAA CUSIP 36268GAD7 1,025,000 GOLDMAN SACHS GROUP INC 1,025,000.00 1,024,774.50 0.50 225.50- 8,277.16 DTD 10/21/2025 VAR CPN 10/21/2029 100.0000 99.9780 CALLABLE MOODY'S RATING A2 CUSIP 38141GD27 1,500,000 GUARDIAN LIFE 1,500,000.00 1,502,760.00 0.73 2,760.00 15,324.79 DTD 10/06/2025 4.327% 10/06/2030 100.0000 100.1840 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AA1 CUSIP 40139LBN2 1,205,000 GUARDIAN LIFE GLOBAL FDG 1,205,000.00 1,204,204.70 0.59 795.30- 13,288.64 MEDIUM TERM NOTE 100.0000 99.9340 DTD 09/26/2024 4.179% 09/26/2029 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AA1 CUSIP 40139LBJ1 158 PAGE 8 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,663,000 HOME DEPOT INC 1,593,203.89 1,609,152.06 0.78 15,948.17 2,180.38 DTD 06/17/19 2.950 06/15/2029 95.8030 96.7620 MOODY'S RATING A2 CUSIP 437076BY7 1,000,000 HOME DEPOT INC 992,260.00 1,025,240.00 0.50 32,980.00 791.67 DTD 06/25/2024 4.750% 06/25/2029 99.2260 102.5240 CALLABLE MOODY'S RATING A2 CUSIP 437076DC3 519,127.49 HONDA AUTO RECEIVABLES OWNER 519,064.42 525,403.74 0.26 6,339.32 987.93 ASSET BCKD SEC SER 2024-2 CL A3 99.9879 101.2090 DTD 05/21/2024 5.270% 11/20/2028 CALLABLE CUSIP 437930AC4 570,497.05 HONDA AUTO RECEIVABLES OWNER 571,909.24 576,721.17 0.28 4,811.93 898.53 ASSET BCKD SEC SER 2023-4 CL A3 100.2476 101.0910 DTD 11/08/2023 5.670% 06/21/2028 NON CALLABLE MOODY'S RATING AAA CUSIP 438123AC5 560,116.93 HYUNDAI AUTO LEASE SECURITIZAT 560,101.36 562,973.53 0.27 2,872.17 1,346.77 ASSET BCKD SEC SER 2024-B CL A3 99.9972 100.5100 DTD 05/22/2024 5.410% 05/17/2027 CALLABLE 144A PRIVATE PLACEMENT CUSIP 44934FAD7 2,460,000 INTER-AMERICAN DEVEL BK 2,448,733.20 2,438,819.40 1.19 9,913.80- 4,245.21 DTD 04/20/21 0.875 04/20/2026 99.5420 99.1390 MOODY'S RATING AAA CUSIP 4581X0DV7 1,750,000 INTL BANK RECON & DEVELOPMENT 1,721,510.00 1,762,250.00 0.86 40,740.00 14,127.60 DTD 10/16/2024 3.875% 10/16/2029 98.3720 100.7000 NON CALLABLE MOODY'S RATING AAA CUSIP 459058LN1 159 PAGE 9 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,700,000 INTL BK RECON & DEVELOP 1,694,220.00 1,725,296.00 0.84 31,076.00 19,673.96 DTD 03/20/2025 4.125% 03/20/2030 99.6600 101.4880 NON CALLABLE MOODY'S RATING AAA CUSIP 459058LR2 1,000,000 JOHN DEERE CAPITAL CORP 1,006,920.00 1,010,530.00 0.49 3,610.00 9,236.11 MEDIUM TERM NOTE 100.6920 101.0530 DTD 07/24/2025 4.375% 10/15/2030 NON CALLABLE MOODY'S RATING A1 CUSIP 24422EYF0 1,430,000 JOHN DEERE CAPITAL CORPORATION 1,429,571.00 1,454,596.00 0.71 25,025.00 32,139.25 DTD 01/09/2025 4.650% 01/07/2028 99.9700 101.7200 NON CALLABLE MOODY'S RATING A1 CUSIP 24422EXZ7 73,664.31 JOHN DEERE OWNER TRUST 73,657.27 73,637.05 0.04 20.22- 122.45 ASSET BCKD SEC SER 2022-B CL A3 99.9905 99.9630 DTD 07/20/2022 3.740% 02/16/2027 NON CALLABLE MOODY'S RATING AAA CUSIP 47800AAC4 231,161.91 JOHN DEERE OWNER TRUST 231,143.97 231,723.63 0.11 579.66 522.94 ASSET BCKD SEC SER 2022-C CL A3 99.9923 100.2430 DTD 10/19/2022 5.090% 06/15/2027 CALLABLE MOODY'S RATING AAA CUSIP 47800BAC2 500,000 JOHN DEERE OWNER TRUST 499,765.63 504,380.00 0.25 4,614.37 1,102.22 ASSET BCKD SEC SER 2024-A CL A3 99.9531 100.8760 DTD 03/19/2024 4.960% 11/15/2028 CALLABLE MOODY'S RATING AAA CUSIP 47800RAD5 160 PAGE 10 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,500,000 JPMORGAN CHASE & CO 1,496,610.00 1,504,860.00 0.73 8,250.00 27,669.75 DTD 07/23/18 07/23/2029 99.7740 100.3240 MOODY'S RATING A1 CUSIP 46647PAV8 1,400,000 MARSH & MCLENNAN COS INC 1,397,340.00 1,428,070.00 0.69 30,730.00 19,168.33 DTD 11/08/2024 4.650% 03/15/2030 99.8100 102.0050 CALLABLE MOODY'S RATING A3 CUSIP 571748CA8 1,000,000 MASSMUTUAL GLBL FDG II 998,670.00 1,009,390.00 0.49 10,720.00 6,825.00 MEDIUM TERM NOTE 99.8670 100.9390 DTD 05/07/2025 4.550% 05/07/2030 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AA3 CUSIP 57629TBX4 1,000,000 MASSMUTUAL GLOBAL FUNDIN 1,002,230.00 985,430.00 0.48 16,800.00- 5,500.00 144A PRIV PLCMT 1.200 07/16/2026 100.2230 98.5430 MOODY'S RATING AA3 CUSIP 57629WDE7 945,000 MASTERCARD INC 944,083.35 966,489.30 0.47 22,405.95 14,332.50 DTD 03/09/2023 4.875% 03/09/2028 99.9030 102.2740 CALLABLE MOODY'S RATING AA3 CUSIP 57636QAW4 1,045,000 MERCEDES-BENZ AUTO LEASE TRUST 1,044,828.52 1,045,971.85 0.51 1,143.33 2,099.29 ASSET BCKD SEC SER 2025-B CL A3 99.9836 100.0930 DTD 10/22/2025 4.520% 04/16/2029 CALLABLE CUSIP 58770XAD5 741,090.55 MERCEDES-BENZ AUTO RECEIVABLES TRUST 756,780.82 751,006.34 0.37 5,774.48- 1,959.77 ASSET BCKD SEC SER 2023-2 CL A3 102.1172 101.3380 DTD 10/25/2023 5.950% 11/15/2028 CALLABLE CUSIP 58769FAC9 161 PAGE 11 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,115,000 MET LIFE GLOB FUNDING I 1,113,728.90 1,092,633.10 0.53 21,095.80- 9,872.40 144A PRIV PLCMT 1.875 01/11/2027 99.8860 97.9940 MOODY'S RATING AA3 CUSIP 59217GER6 770,000 MET TOWER GLOBAL FUNDING 769,291.60 756,016.80 0.37 13,274.80- 2,860.76 144A PRIV PLCMT 1.250 09/14/2026 99.9080 98.1840 MOODY'S RATING AA3 CUSIP 58989V2D5 1,500,000 META PLATFORMS INC 1,502,895.00 1,503,165.00 0.73 270.00 10,150.00 DTD 11/03/2025 4.200% 11/15/2030 100.1930 100.2110 CALLABLE MOODY'S RATING AA3 CUSIP 30303MAB8 912,000 META PLATFORMS INC 910,584.09 922,989.60 0.45 12,405.51 14,814.93 DTD 08/09/2024 4.300% 08/15/2029 99.8448 101.2050 CALLABLE MOODY'S RATING AA3 CUSIP 30303M8S4 1,950,000 MORGAN STANLEY BANK 1,950,000.00 1,977,183.00 0.96 27,183.00 44,939.70 DTD 07/19/2024 VAR CPN 07/14/2028 100.0000 101.3940 CALLABLE MOODY'S RATING AA3 CUSIP 61690U8E3 1,470,000 MORGAN STANLEY SR 1,470,184.60 1,469,529.60 0.71 655.00- 11,644.73 MEDIUM TERM NOTE 100.0126 99.9680 DTD 10/22/2025 VAR CPN 10/18/2029 CALLABLE MOODY'S RATING A1 CUSIP 61748UAK8 1,000,000 NATIONAL RURAL UTILS COOP 1,002,873.61 1,029,180.00 0.50 26,306.39 19,800.00 MEDIUM TERM NOTE 100.2874 102.9180 DTD 02/07/2025 4.950% 02/07/2030 CALLABLE MOODY'S RATING A2 CUSIP 63743HFX5 162 PAGE 12 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,000,000 NEW YORK LIFE GLOBAL FDG 994,880.00 1,026,180.00 0.50 31,300.00 3,472.22 MEDIUM TERM NOTE 99.4880 102.6180 DTD 06/06/2024 5.000% 06/06/2029 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AA1 CUSIP 64952WFG3 1,365,000 NEW YORK LIFE GLOBAL FDG 1,364,221.95 1,386,430.50 0.67 22,208.55 4,534.83 DTD 12/05/2024 4.600% 12/05/2029 99.9430 101.5700 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AA1 CUSIP 64952WFK4 1,000,000 NORTHWESTERN MUTUAL GLBL 1,004,040.00 1,014,740.00 0.49 10,700.00 3,577.78 MEDIUM TERM NOTE 100.4040 101.4740 DTD 06/03/2025 4.600% 06/03/2030 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AA1 CUSIP 66815L2W8 1,865,000 PACCAR FINANCIAL CORP 1,863,955.60 1,873,728.20 0.91 9,772.60 11,190.00 MEDIUM TERM NOTE 99.9440 100.4680 DTD 11/07/2025 4.000% 11/07/2028 NON CALLABLE MOODY'S RATING A1 CUSIP 69371RU20 1,500,000 PEPSICO INC 1,497,675.00 1,529,370.00 0.74 31,695.00 30,750.00 DTD 07/17/2024 4.500% 07/17/2029 99.8450 101.9580 CALLABLE MOODY'S RATING A1 CUSIP 713448FX1 1,750,000 PRICOA GLOBAL FDG 1,749,440.00 1,754,410.00 0.85 4,970.00 7,612.50 MEDIUM TERM NOTE 99.9680 100.2520 DTD 11/25/2025 4.350% 11/25/2030 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AA3 CUSIP 74153WCZ0 163 PAGE 13 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,500,000 PROGRESSIVE CORP 1,455,495.00 1,502,640.00 0.73 47,145.00 20,000.00 DTD 10/23/18 4.000 03/01/2029 97.0330 100.1760 MOODY'S RATING A2 CUSIP 743315AV5 1,500,000 PROLOGIS LP 1,481,235.00 1,514,340.00 0.74 33,105.00 27,343.75 DTD 02/01/20 4.375 02/01/2029 98.7490 100.9560 MOODY'S RATING A2 CUSIP 74340XBL4 1,463,000 REALTY INCOME CORP 1,419,212.41 1,455,889.82 0.71 36,677.41 26,984.22 DTD 01/15/2024 4.000% 07/15/2029 97.0070 99.5140 CALLABLE MOODY'S RATING A3 CUSIP 756109CB8 2,000,000 ROYAL BANK OF CANADA 2,019,920.00 2,052,960.00 1.00 33,040.00 41,250.00 MEDIUM TERM NOTE 100.9960 102.6480 CONVERTIBLE DTD 01/19/2024 4.950% 02/01/2029 NON CALLABLE MOODY'S RATING A1 CUSIP 78016HZV5 2,000,000 SIMON PROPERTY GROUP LP 1,853,380.00 1,872,740.00 0.91 19,360.00 24,438.89 DTD 07/09/20 2.650 07/15/2030 92.6690 93.6370 MOODY'S RATING A3 CUSIP 828807DK0 817,404.32 TOYOTA AUTO RECEIVABLES OWNER 814,083.62 822,251.53 0.40 8,167.91 1,874.58 ASSET BCKD SEC SER 2023-C CL A3 99.5938 100.5930 DTD 08/15/2023 5.160% 04/17/2028 CALLABLE CUSIP 89231FAD2 1,385,000 TOYOTA MOTOR CREDIT CORP 1,384,390.60 1,368,186.10 0.67 16,204.50- 562.66 MED TERM NOTE 99.9560 98.7860 DTD 06/18/21 1.125 06/18/2026 MOODY'S RATING A1 CUSIP 89236TJK2 164 PAGE 14 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,445,000 TOYOTA MOTOR CREDIT CORP 1,441,907.70 1,487,873.15 0.72 45,965.45 34,174.25 MEDIUM TERM NOTE 99.7860 102.9670 DTD 01/09/2025 4.950% 01/09/2030 NON CALLABLE MOODY'S RATING A1 CUSIP 89236TNA9 3,250,000 UNITED STATES TREASURY NOTES 3,260,312.50 3,238,820.00 1.57 21,492.50- 291.78 DTD 06/30/2022 3.250% 06/30/2027 100.3173 99.6560 MOODY'S RATING AA1 CUSIP 91282CEW7 400,000 UNITED STATES TREASURY NOTES 393,218.75 395,484.00 0.19 2,265.25 4,603.26 DTD 07/31/2022 2.750% 07/31/2027 98.3047 98.8710 MOODY'S RATING AA1 CUSIP 91282CFB2 4,500,000 UNITED STATES TREASURY NOTES 4,468,902.34 4,474,170.00 2.18 5,267.66 47,781.42 DTD 08/31/2022 3.125% 08/31/2027 99.3090 99.4260 MOODY'S RATING AA1 CUSIP 91282CFH9 3,450,000 UNITED STATES TREASURY NOTES 3,421,152.34 3,486,915.00 1.70 65,762.66 36,360.06 DTD 09/30/2022 4.125% 09/30/2027 99.1639 101.0700 MOODY'S RATING AA1 CUSIP 91282CFM8 850,000 UNITED STATES TREASURY NOTES 852,656.25 856,043.50 0.42 3,387.25 2,895.60 DTD 11/30/2022 3.875% 11/30/2027 100.3125 100.7110 MOODY'S RATING AA1 CUSIP 91282CFZ9 2,750,000 UNITED STATES TREASURY NOTES 2,775,107.42 2,770,515.00 1.35 4,592.42- 294.37 DTD 12/31/2022 3.875% 12/31/2027 100.9130 100.7460 MOODY'S RATING AA1 CUSIP 91282CGC9 165 PAGE 15 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 3,000,000 UNITED STATES TREASURY NOTES 2,957,929.69 3,000,600.00 1.46 42,670.31 43,940.22 DTD 01/31/2023 3.500% 01/31/2028 98.5977 100.0200 MOODY'S RATING AA1 CUSIP 91282CGH8 3,700,000 UNITED STATES TREASURY NOTES 3,699,113.28 3,738,591.00 1.82 39,477.72 50,287.29 DTD 02/28/2023 4.000% 02/29/2028 99.9760 101.0430 MOODY'S RATING AA1 CUSIP 91282CGP0 4,500,000 UNITED STATES TREASURY NOTES 4,496,958.99 4,557,285.00 2.22 60,326.01 61,160.22 DTD 02/28/2023 4.000% 02/28/2030 99.9324 101.2730 MOODY'S RATING AA1 CUSIP 91282CGQ8 5,000,000 UNITED STATES TREASURY NOTES 5,089,062.50 5,063,500.00 2.46 25,562.50- 83,695.65 DTD 07/31/2023 4.000% 07/31/2030 101.7813 101.2700 MOODY'S RATING AA1 CUSIP 91282CHR5 2,500,000 UNITED STATES TREASURY NOTES 2,525,097.66 2,519,600.00 1.23 5,497.66- 5,108.17 DTD 12/15/2023 4.375% 12/15/2026 101.0039 100.7840 MOODY'S RATING AA1 CUSIP 91282CJP7 2,300,000 UNITED STATES TREASURY NOTES 2,249,867.19 2,338,088.00 1.14 88,220.81 24,240.04 DTD 03/31/2024 4.125% 03/31/2029 97.8203 101.6560 MOODY'S RATING AA1 CUSIP 91282CKG5 2,300,000 UNITED STATES TREASURY NOTES 2,283,109.38 2,328,313.00 1.13 45,203.62 22,178.57 DTD 04/15/2024 4.500% 04/15/2027 99.2656 101.2310 MOODY'S RATING AA1 CUSIP 91282CKJ9 3,200,000 UNITED STATES TREASURY NOTES 3,186,500.00 3,242,496.00 1.58 55,996.00 18,696.13 DTD 05/15/2024 4.500% 05/15/2027 99.5781 101.3280 MOODY'S RATING AA1 CUSIP 91282CKR1 166 PAGE 16 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,000,000 UNITED STATES TREASURY NOTES 1,985,546.88 2,042,260.00 0.99 56,713.12 234.81 DTD 06/30/2024 4.250% 06/30/2029 99.2774 102.1130 MOODY'S RATING AA1 CUSIP 91282CKX8 3,500,000 UNITED STATES TREASURY NOTES 3,527,480.47 3,499,440.00 1.70 28,040.47- 43,109.46 DTD 08/31/2024 3.625% 08/31/2029 100.7852 99.9840 MOODY'S RATING AA1 CUSIP 91282CLK5 5,000,000 UNITED STATES TREASURY NOTES 4,925,039.06 4,976,750.00 2.42 51,710.94 44,711.54 DTD 09/30/2024 3.500% 09/30/2029 98.5008 99.5350 MOODY'S RATING AA1 CUSIP 91282CLN9 3,000,000 UNITED STATES TREASURY NOTES 2,993,789.06 3,051,330.00 1.48 57,540.94 21,194.75 DTD 10/31/2024 4.125% 10/31/2029 99.7930 101.7110 MOODY'S RATING AA1 CUSIP 91282CLR0 4,400,000 UNITED STATES TREASURY NOTES 4,369,171.88 4,517,568.00 2.20 148,396.12 531.77 DTD 12/31/2024 4.375% 12/31/2029 99.2994 102.6720 MOODY'S RATING AA1 CUSIP 91282CMD0 4,000,000 UNITED STATES TREASURY NOTES 3,983,906.25 4,088,920.00 1.99 105,013.75 71,141.30 DTD 01/31/2025 4.250% 01/31/2030 99.5977 102.2230 MOODY'S RATING AA1 CUSIP 91282CMG3 5,000,000 UNITED STATES TREASURY NOTES 5,020,507.81 5,037,700.00 2.45 17,192.19 535.22 DTD 06/30/2025 3.875% 06/30/2030 100.4102 100.7540 CUSIP 91282CNK3 5,000,000 UNITED STATES TREASURY NOTES 4,991,425.79 4,982,250.00 2.42 9,175.79- 61,584.95 DTD 08/31/2025 3.625% 08/31/2030 99.8285 99.6450 MOODY'S RATING AA1 CUSIP 91282CNX5 167 PAGE 17 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 5,000,000 UNITED STATES TREASURY NOTES 4,982,812.50 4,979,500.00 2.42 3,312.50- 50,345.30 DTD 09/15/2025 3.375% 09/15/2028 99.6563 99.5900 CUSIP 91282CNY3 5,000,000 UNITED STATES TREASURY NOTES 5,008,789.06 4,980,650.00 2.42 28,139.06- 46,308.38 DTD 09/30/2025 3.625% 09/30/2030 100.1758 99.6130 MOODY'S RATING AA1 CUSIP 91282CPA3 1,750,000 UNITED STATES TREASURY NOTES 1,731,816.41 1,732,360.00 0.84 543.59 5,384.62 DTD 11/30/2025 3.500% 11/30/2030 98.9610 98.9920 CUSIP 91282CPN5 2,000,000 UNITEDHEALTH GROUP INC 1,906,080.00 1,920,520.00 0.93 14,440.00 21,722.22 DTD 07/25/19 2.875 08/15/2029 95.3040 96.0260 MOODY'S RATING A2 CUSIP 91324PDS8 2,500,000 US TREASURY NOTE 2,456,445.31 2,493,500.00 1.21 37,054.69 3,923.23 DTD 02/01/21 0.375 01/31/2026 98.2578 99.7400 MOODY'S RATING AA1 CUSIP 91282CBH3 2,500,000 US TREASURY NOTE 2,493,652.34 2,477,075.00 1.20 16,577.34- 3,245.19 DTD 04/30/21 0.750 04/30/2026 99.7461 99.0830 MOODY'S RATING AA1 CUSIP 91282CBW0 1,400,000 US TREASURY NOTE 1,379,054.68 1,372,378.00 0.67 6,676.68- 3,147.10 DTD 09/30/21 0.875 09/30/2026 98.5039 98.0270 MOODY'S RATING AA1 CUSIP 91282CCZ2 1,400,000 US TREASURY NOTE 1,391,468.75 1,371,832.00 0.67 19,636.75- 2,697.51 DTD 11/01/21 1.125 10/31/2026 99.3906 97.9880 CUSIP 91282CDG3 168 PAGE 18 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTI AS OF DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 350,000 WALMART INC 349,338.50 343,738.50 0.17 5,600.00- 1,061.67 DTD 09/17/21 1.050 09/17/2026 99.8110 98.2110 MOODY'S RATING AA2 CUSIP 931142ER0 1,365,000 WELLS FARGO CARD ISSUANCE TRUST 1,364,977.34 1,383,113.55 0.67 18,136.21 2,632.93 ASSET BCKD SEC SER 2025-A1 CL A 99.9984 101.3270 DTD 06/10/2025 4.340% 05/15/2030 NON CALLABLE CUSIP 92970QAJ4 ====================================================================================================================================== TOTAL BOND & NOTES 202,306,410.52 204,445,216.25 99.41 2,138,805.73 1,622,304.59 ====================================================================================================================================== TOTAL INVESTMENTS 203,522,957.50 205,661,763.23 100.00 2,138,805.73 1,629,267.53 TOTAL ACCRUALS 1,629,267.53 1,629,267.53 ====================================================================================================================================== TOTAL ACCRUALS AND INVESTMENTS 205,152,225.03 207,291,030.76 169 PAGE 19 CASH SUMMARY CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ CASH SUMMARY DESCRIPTION PRINCIPAL CASH INCOME CASH ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BEGINNING BALANCE 0.00 0.00 RECEIPTS NET INTEREST COLLECTED 0.00 696,321.48 TRANSFER RECEIPTS 696,321.48 0.00 SALES 3,629,727.37 0.00 CASH MANAGEMENT SALES 3,841,555.32 0.00 TOTAL CASH RECEIPTS 8,167,604.17 696,321.48 DISBURSEMENTS INVESTMENT MANAGEMENT EXPENSES 11,982.53- 0.00 TRANSFER DISBURSEMENTS 0.00 696,321.48- PURCHASES 5,268,600.16- 0.00 CASH MANAGEMENT PURCHASES 2,887,021.48- 0.00 TOTAL CASH DISBURSEMENTS 8,167,604.17- 696,321.48- ======================================================================================================================================== ENDING BALANCE 0.00 0.00 ________________________________________________________________________________________________________________________________________ 170 PAGE 20 STATEMENT OF TRANSACTIONS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BEGINNING BALANCE 0.00 202,748,545.41 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH EQUIVALENTS 12/01/25 INTEREST RECEIVED 6,332.94 AS 100% TREAS MM FD-SVC CL #008 INTEREST FROM 11/1/25 THROUGH 11/30/25 12/01/25 INTEREST RECEIVED 85.08 PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM INTEREST FROM 11.01.25 TO 11.30.25 12/31/25 2,886,936.4 CASH SWEEP PURCHASES FOR STMT PERIOD 2,886,936.40- 2,886,936.40 AS 100% TREAS MM FD-SVC CL #008 8 TRANSACTIONS 12/31/25 85.08 CASH SWEEP PURCHASES FOR STMT PERIOD 85.08- 85.08 PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM 1 TRANSACTIONS 12/31/25 3,841,555.32- CASH SWEEP SALES FOR STMT PERIOD 3,841,555.32 3,841,555.32- AS 100% TREAS MM FD-SVC CL #008 4 TRANSACTIONS BONDS & NOTES 12/15/25 INTEREST RECEIVED 5,064.67 AMER EXPR CREDIT ABS 4.280% 4/15/30 CUSIP 02582JKP4 $0.00357/PV ON 1,420,000.00 PV DUE 12/15/25 12/15/25 INTEREST RECEIVED 3,225.04 BANK OF AMERICA ABS 4.930% 5/15/29 CUSIP 05522RDJ4 $0.00411/PV ON 785,000.00 PV DUE 12/15/25 171 PAGE 21 STATEMENT OF TRANSACTIONS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/15/25 INTEREST RECEIVED 3,527.50 BK OF AMERICA ABS 4.980% 11/15/28 CUSIP 05522RDH8 $0.00415/PV ON 850,000.00 PV DUE 12/15/25 12/26/25 INTEREST RECEIVED 3,473.75 BMW VEHICLE LEA ABS 3.970% 9/25/28 CUSIP 05594HAD5 $0.00331/PV ON 1,050,000.00 PV DUE 12/25/25 12/26/25 INTEREST RECEIVED 3,000.08 BMW VEHICLE OWN ABS 5.180% 2/26/29 CUSIP 096919AD7 $0.00432/PV ON 695,000.00 PV DUE 12/25/25 12/26/25 9,998.81- PAID DOWN 9,998.81 9,997.29- 1.52 BMW VEHICLE OWN ABS 5.180% 2/26/29 CUSIP 096919AD7 12/15/25 INTEREST RECEIVED 6,478.33 CHASE ISSUANCE ABS 4.600% 1/16/29 CUSIP 161571HV9 $0.00383/PV ON 1,690,000.00 PV DUE 12/15/25 12/22/25 INTEREST RECEIVED 31,354.17 CITIBANK CREDIT ABS 4.300% 6/21/30 CUSIP 17305EHA6 $0.02090/PV ON 1,500,000.00 PV DUE 12/21/25 12/26/25 INTEREST RECEIVED 3,243.75 FED HOME LN MTG CORP 2.595% 9/25/29 CUSIP 3137FPJG1 $0.00216/PV ON 1,500,000.00 PV DUE 12/25/25 172 PAGE 22 STATEMENT OF TRANSACTIONS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/26/25 INTEREST RECEIVED 4,906.04 FED HOME LN MTG CORP 2.982% 5/25/29 CUSIP 3137FMCR1 $0.00245/PV ON 1,974,261.08 PV DUE 12/25/25 12/26/25 2,375.52- PAID DOWN 2,375.52 2,291.82- 83.70 FED HOME LN MTG CORP 2.982% 5/25/29 CUSIP 3137FMCR1 TO SETTLE ON 12/26/2025 12/26/25 INTEREST RECEIVED 3,824.29 FED HOME LN MTG CORP 3.563% 1/25/29 CUSIP 3137FL6P4 $0.00297/PV ON 1,288,000.00 PV DUE 12/25/25 12/26/25 INTEREST RECEIVED 3,448.33 FHLMC MULTIFAMILY ST 2.069% 1/25/30 CUSIP 3137FRUT6 $0.00172/PV ON 2,000,000.00 PV DUE 12/25/25 12/26/25 INTEREST RECEIVED 3,233.33 FHLMC MULTIFAMILY ST 2.425% 8/25/29 CUSIP 3137FPHK4 $0.00202/PV ON 1,600,000.00 PV DUE 12/25/25 12/26/25 INTEREST RECEIVED 1,437.04 FHLMC MULTIFAMILY ST 2.653% 8/25/26 CUSIP 3137BSP72 $0.00221/PV ON 650,000.00 PV DUE 12/25/25 173 PAGE 23 STATEMENT OF TRANSACTIONS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/26/25 INTEREST RECEIVED 5,105.83 FHLMC MULTIFAMILY ST 2.785% 6/25/29 CUSIP 3137FNAE0 $0.00232/PV ON 2,200,000.00 PV DUE 12/25/25 12/26/25 INTEREST RECEIVED 2,703.33 FHLMC MULTIFAMILY ST 3.244% 8/25/27 CUSIP 3137FBBX3 $0.00270/PV ON 1,000,000.00 PV DUE 12/25/25 12/26/25 INTEREST RECEIVED 7,302.08 FHLMC MULTIFAMILY ST 3.505% 3/25/29 CUSIP 3137FLN91 $0.00292/PV ON 2,500,000.00 PV DUE 12/25/25 12/26/25 INTEREST RECEIVED 7,841.25 FHLMC MULTIFAMILY ST 3.690% 1/25/29 CUSIP 3137FKZZ2 $0.00308/PV ON 2,550,000.00 PV DUE 12/25/25 12/02/25 REVERSAL 51,984.42 COST ADJUSTMENT FHLMC MULTIFAMILY ST 3.771% 12/25/28 CUSIP 3137FKUP9 CU10 LATE ANNOUNCMENT 12/02/25 54,338.38 REVERSAL SHARE ADJUSTMENT FHLMC MULTIFAMILY ST 3.771% 12/25/28 CUSIP 3137FKUP9 CU10 LATE ANNOUNCMENT 174 PAGE 24 STATEMENT OF TRANSACTIONS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/02/25 REVERSAL 6,403.45- INTEREST RECEIVED FHLMC MULTIFAMILY ST 3.771% 12/25/28 CUSIP 3137FKUP9 CU10 LATE ANNOUNCMENT 12/02/25 INTEREST RECEIVED 6,403.45 FHLMC MULTIFAMILY ST 3.771% 12/25/28 CUSIP 3137FKUP9 $0.00320/PV ON 1,945,661.62 PV DUE 11/25/25 12/26/25 INTEREST RECEIVED 6,114.24 FHLMC MULTIFAMILY ST 3.771% 12/25/28 CUSIP 3137FKUP9 $0.00306/PV ON 1,945,661.62 PV DUE 12/25/25 12/26/25 2,348.86- PAID DOWN 2,348.86 2,247.11- 101.75 FHLMC MULTIFAMILY ST 3.771% 12/25/28 CUSIP 3137FKUP9 TO SETTLE ON 12/26/2025 12/26/25 INTEREST RECEIVED 1,846.25 FHLMC SER K110 CMO 1.477% 4/25/30 CUSIP 3137FTZQ3 $0.00123/PV ON 1,500,000.00 PV DUE 12/25/25 12/15/25 2,000,000 PURCHASED 1,787,343.75- 1,787,343.75 FHLMC SER K115 CMO 1.383% 6/25/30 CUSIP 3137FWG79 AT $89.3672 ON TRADE DATE 12/10/2025 TO SETTLE ON 12/15/2025 WACHOVIA CAPITAL MARKETS, LLC. 175 PAGE 25 STATEMENT OF TRANSACTIONS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/15/25 ACCRUED INTEREST ON PURCHASE 1,075.67- FHLMC SER K115 CMO 1.383% 6/25/30 CUSIP 3137FWG79 12/26/25 INTEREST RECEIVED 3,766.67 FHLMC SER K748 CMO 2.260% 1/25/29 CUSIP 3137H5YC5 $0.00188/PV ON 2,000,000.00 PV DUE 12/25/25 12/16/25 INTEREST RECEIVED 18.02 GM FINANCIAL ABS 3.100% 2/16/27 CUSIP 362585AC5 $0.00005/PV ON 6,975.93 PV DUE 12/16/25 12/16/25 6,975.93- PAID DOWN 6,975.93 6,974.47- 1.46 GM FINANCIAL ABS 3.100% 2/16/27 CUSIP 362585AC5 12/16/25 INTEREST RECEIVED 4,683.67 GM FINANCIAL ABS 4.850% 12/18/28 CUSIP 36268GAD7 $0.00358/PV ON 1,158,845.63 PV DUE 12/16/25 12/16/25 72,885.86- PAID DOWN 72,885.86 72,770.28- 115.58 GM FINANCIAL ABS 4.850% 12/18/28 CUSIP 36268GAD7 12/15/25 INTEREST RECEIVED 24,529.25 HOME DEPOT INC 2.950% 6/15/29 CUSIP 437076BY7 INTEREST ON 1,663,000.000 UNITS 176 PAGE 26 STATEMENT OF TRANSACTIONS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/26/25 INTEREST RECEIVED 23,750.00 HOME DEPOT INC 4.750% 6/25/29 CUSIP 437076DC3 INTEREST ON 1,000,000.000 UNITS 12/18/25 INTEREST RECEIVED 2,349.54 HONDA AUTO RECE ABS 5.270% 11/20/28 CUSIP 437930AC4 $0.00439/PV ON 535,000.00 PV DUE 12/18/25 12/18/25 15,872.51- PAID DOWN 15,872.51 15,870.58- 1.93 HONDA AUTO RECE ABS 5.270% 11/20/28 CUSIP 437930AC4 12/22/25 INTEREST RECEIVED 2,888.03 HONDA AUTO RECE ABS 5.670% 6/21/28 CUSIP 438123AC5 $0.00359/PV ON 611,222.38 PV DUE 12/21/25 12/22/25 40,725.33- PAID DOWN 40,725.33 40,826.14- 100.81- HONDA AUTO RECE ABS 5.670% 6/21/28 CUSIP 438123AC5 TO SETTLE ON 12/22/2025 12/15/25 INTEREST RECEIVED 2,750.08 HYUNDAI AUTO ABS 5.410% 5/17/27 CUSIP 44934FAD7 $0.00451/PV ON 610,000.00 PV DUE 12/15/25 12/15/25 49,883.07- PAID DOWN 49,883.07 49,881.68- 1.39 HYUNDAI AUTO ABS 5.410% 5/17/27 CUSIP 44934FAD7 177 PAGE 27 STATEMENT OF TRANSACTIONS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/15/25 INTEREST RECEIVED 1,083.95 JOHN DEERE OWNE ABS 5.090% 6/15/27 CUSIP 47800BAC2 $0.00103/PV ON 255,548.59 PV DUE 12/15/25 12/15/25 24,386.68- PAID DOWN 24,386.68 24,384.79- 1.89 JOHN DEERE OWNE ABS 5.090% 6/15/27 CUSIP 47800BAC2 12/15/25 INTEREST RECEIVED 276.25 JOHN DEERE OWNER ABS 3.740% 2/16/27 CUSIP 47800AAC4 $0.00042/PV ON 88,635.55 PV DUE 12/15/25 12/15/25 14,971.24- PAID DOWN 14,971.24 14,969.81- 1.43 JOHN DEERE OWNER ABS 3.740% 2/16/27 CUSIP 47800AAC4 12/15/25 INTEREST RECEIVED 2,066.67 JOHN DEERE OWNER ABS 4.960% 11/15/28 CUSIP 47800RAD5 $0.00413/PV ON 500,000.00 PV DUE 12/15/25 12/15/25 INTEREST RECEIVED 3,378.83 MERCEDES-BENZ ABS 4.520% 4/16/29 CUSIP 58770XAD5 $0.00323/PV ON 1,045,000.00 PV DUE 12/15/25 12/15/25 INTEREST RECEIVED 3,920.02 MERCEDES-BENZ ABS 5.950% 11/15/28 CUSIP 58769FAC9 $0.00356/PV ON 790,592.93 PV DUE 12/15/25 178 PAGE 28 STATEMENT OF TRANSACTIONS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/15/25 49,502.38- PAID DOWN 49,502.38 50,550.44- 1,048.06- MERCEDES-BENZ ABS 5.950% 11/15/28 CUSIP 58769FAC9 12/05/25 INTEREST RECEIVED 31,395.00 NEW YORK LIFE GL FDG 4.600% 12/05/29 CUSIP 64952WFK4 INTEREST ON 1,365,000.000 UNITS 12/08/25 INTEREST RECEIVED 25,000.00 NEW YORK LIFE MTN 5.000% 6/06/29 CUSIP 64952WFG3 INTEREST ON 1,000,000.000 UNITS 12/03/25 INTEREST RECEIVED 23,000.00 NW MUTUAL GLOBAL MTN 4.600% 6/03/30 CUSIP 66815L2W8 INTEREST ON 1,000,000.000 UNITS 12/09/25 1,750,000 PURCHASED 1,749,440.00- 1,749,440.00 PRICOA GLOBAL MTN 4.350% 11/25/30 CUSIP 74153WCZ0 AT $99.9680 ON TRADE DATE 12/08/2025 TO SETTLE ON 12/09/2025 BARCLAYS CAPITAL INC. FIXED IN 12/09/25 ACCRUED INTEREST ON PURCHASE 2,960.42- PRICOA GLOBAL MTN 4.350% 11/25/30 CUSIP 74153WCZ0 12/15/25 INTEREST RECEIVED 3,800.51 TOYOTA AUTO REC ABS 5.160% 4/17/28 CUSIP 89231FAD2 $0.00292/PV ON 883,838.90 PV DUE 12/15/25 179 PAGE 29 STATEMENT OF TRANSACTIONS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/15/25 66,434.58- PAID DOWN 66,434.58 66,164.69- 269.89 TOYOTA AUTO REC ABS 5.160% 4/17/28 CUSIP 89231FAD2 12/18/25 INTEREST RECEIVED 7,790.63 TOYOTA MOTOR CREDIT 1.125% 6/18/26 CUSIP 89236TJK2 INTEREST ON 1,385,000.000 UNITS 12/31/25 INTEREST RECEIVED 52,812.50 U.S. TREASURY NOTES 3.250% 6/30/27 CUSIP 91282CEW7 INTEREST ON 3,250,000.000 UNITS 12/16/25 1,750,000 PURCHASED 1,731,816.41- 1,731,816.41 U.S. TREASURY NOTES 3.625% 11/30/30 CUSIP 91282CPN5 AT $98.9609 ON TRADE DATE 12/15/2025 TO SETTLE ON 12/16/2025 CITIGROUP GBL MKTS/SALOMON BRO 12/16/25 ACCRUED INTEREST ON PURCHASE 2,692.31- U.S. TREASURY NOTES 3.625% 11/30/30 CUSIP 91282CPN5 12/31/25 INTEREST RECEIVED 96,875.00 U.S. TREASURY NOTES 3.875% 6/30/30 CUSIP 91282CNK3 INTEREST ON 5,000,000.000 UNITS 12/01/25 INTEREST RECEIVED 16,468.75 U.S. TREASURY NOTES 3.875% 11/30/27 CUSIP 91282CFZ9 INTEREST ON 850,000.000 UNITS 180 PAGE 30 STATEMENT OF TRANSACTIONS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/31/25 INTEREST RECEIVED 53,281.25 U.S. TREASURY NOTES 3.875% 12/31/27 CUSIP 91282CGC9 INTEREST ON 2,750,000.000 UNITS 12/31/25 INTEREST RECEIVED 42,500.00 U.S. TREASURY NOTES 4.250% 6/30/29 CUSIP 91282CKX8 INTEREST ON 2,000,000.000 UNITS 12/15/25 INTEREST RECEIVED 54,687.50 U.S. TREASURY NOTES 4.375% 12/15/26 CUSIP 91282CJP7 INTEREST ON 2,500,000.000 UNITS 12/31/25 INTEREST RECEIVED 96,250.00 U.S. TREASURY NOTES 4.375% 12/31/29 CUSIP 91282CMD0 INTEREST ON 4,400,000.000 UNITS 12/16/25 1,035,000- SOLD 1,023,366.60 1,025,051.35- 1,684.75- UNITEDHEALTH GROUP 1.150% 5/15/26 CUSIP 91324PEC2 AT $98.8760 ON TRADE DATE 12/15/2025 TO SETTLE ON 12/16/2025 FTN FINANCIAL SECURITIES CORP 12/16/25 ACCRUED INTEREST ON SALE 1,024.94 UNITEDHEALTH GROUP 1.150% 5/15/26 CUSIP 91324PEC2 12/01/25 INTEREST RECEIVED 4,218.75 US TREASURY NOTE 0.375% 11/30/25 CUSIP 91282CAZ4 INTEREST ON 2,250,000.000 UNITS 181 PAGE 31 STATEMENT OF TRANSACTIONS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/01/25 2,250,000- MATURED 2,250,000.00 2,209,658.20- 40,341.80 US TREASURY NOTE 0.375% 11/30/25 CUSIP 91282CAZ4 AT $100.0000 ON TRADE DATE 11/30/2025 TO SETTLE ON 12/01/2025 12/15/25 INTEREST RECEIVED 4,936.75 WELLS FARGO CARD ABS 4.340% 5/15/30 CUSIP 92970QAJ4 $0.00362/PV ON 1,365,000.00 PV DUE 12/15/25 TRANSFER RECEIPTS 12/01/25 ADDITION TO ACCOUNT 27,105.52 TRANSFER FROM INCOME 12/03/25 ADDITION TO ACCOUNT 23,000.00 TRANSFER FROM INCOME 12/05/25 ADDITION TO ACCOUNT 31,395.00 TRANSFER FROM INCOME 12/08/25 ADDITION TO ACCOUNT 25,000.00 TRANSFER FROM INCOME 12/15/25 ADDITION TO ACCOUNT 115,689.26 TRANSFER FROM INCOME 12/16/25 ADDITION TO ACCOUNT 3,034.32 TRANSFER FROM INCOME 12/18/25 ADDITION TO ACCOUNT 10,140.17 TRANSFER FROM INCOME 182 PAGE 32 STATEMENT OF TRANSACTIONS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/22/25 ADDITION TO ACCOUNT 34,242.20 TRANSFER FROM INCOME 12/26/25 ADDITION TO ACCOUNT 84,996.26 TRANSFER FROM INCOME 12/31/25 ADDITION TO ACCOUNT 341,718.75 TRANSFER FROM INCOME INVESTMENT MANAGEMENT EXPENSES 12/05/25 INVESTMENT MGMT FEE 11,982.53- PAID TO CHANDLER ASSET MANAGEMENT INC INV 2511CUPERTIN CUPERTIN CITY OF CUPERTINO FOR PERIOD 11/1/2025 - 11/30/2025 TRANSFER DISBURSEMENTS 12/01/25 TRANSFER TO PRINCIPAL 27,105.52- 12/03/25 TRANSFER TO PRINCIPAL 23,000.00- 12/05/25 TRANSFER TO PRINCIPAL 31,395.00- 12/08/25 TRANSFER TO PRINCIPAL 25,000.00- 12/15/25 TRANSFER TO PRINCIPAL 115,689.26- 12/16/25 TRANSFER TO PRINCIPAL 3,034.32- 12/18/25 TRANSFER TO PRINCIPAL 10,140.17- 12/22/25 TRANSFER TO PRINCIPAL 34,242.20- 183 INVESTMENT AND INSURANCE PRODUCTS ARE:·NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY FEDERAL GOVERNMENT AGENCY·NOT A DEPOSIT, OBLIGATION OF, OR GUARANTEED BY ANY BANK OR BANKING AFFILIATE·SUBJECT TO INVESTMENT RISKS AND MAY LOSE VALUE, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED PAGE 33 STATEMENT OF TRANSACTIONS CITY OF CUPERTI FOR THE PERIOD DECEMBER 1, 2025 THROUGH DECEMBER 31, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 12/26/25 TRANSFER TO PRINCIPAL 84,996.26- 12/31/25 TRANSFER TO PRINCIPAL 341,718.75- ================================================================================================================= ENDING BALANCE 0.00 203,522,957.50 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 184 CITY OF CUPERTINO PARS Post-Employment Benefits Trust 12/1/2025 to 12/31/2025 Jonathan Orozco Acting Director of Administrative Services City of Cupertino 10300 Torre Ave. Cupertino, CA 95014 Account Summary Source 12/1/2025 Contributions Earnings Expenses Distributions Transfers 12/31/2025 OPEB 1001 $45,888,106.03 $0.00 $220,996.16 $11,807.74 $0.00 $0.00 $46,097,294.45 PENSION 1002 $26,110,804.35 $0.00 $124,117.89 $6,714.46 $0.00 $0.00 $26,228,207.78 Totals $71,998,910.38 $0.00 $345,114.05 $18,522.20 $0.00 $0.00 $72,325,502.23 Investment Selection Source OPEB PENSION Investment Objective Source OPEB PENSION Investment Return Source 1-Month 3-Months 1-Year 3-Years 5-Years 10-Years OPEB 0.48%2.27%16.40%15.13%6.77%8.31%6/21/2010 PENSION 0.48%2.27%16.36%15.05%6.69%-3/26/2019 Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Balance as of Individual account based on US Bank Balanced MM. Dual goals are to provide a moderate amount of current income with moderate capital growth. Income production and longer term growth of capital. City of Cupertino - PEN Plan's Inception Date Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Annualized Return Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return. Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change. Individual account based on US Bank Balanced MM. Dual goals are to provide a moderate amount of current income with moderate capital growth. Income production and longer term growth of capital. Account Report for the Period Balance as of City of Cupertino - OPEB 185 186 CITY OF CUPERTINO Agenda Item 26-14797 Agenda Date: 1/26/2026 Agenda #: 4. Subject: ACTION ITEM Appointment of Chair and Vice Chair Appoint Chair and Vice Chair Presenter: Jonathan Orozco, Acting Director of Administrative Services and City Treasurer 4:10(10) CITY OF CUPERTINO Printed on 1/23/2026Page 1 of 1 powered by Legistar™187 CITY OF CUPERTINO Agenda Item 26-14798 Agenda Date: 1/26/2026 Agenda #: 5. Subject: ACTION ITEM Receive OPEB & Pension Section 115 Trust Investment Policy Receive OPEB & Pension Section 115 Trust Investment Policy and forward to City Council Presenter: PARS and US Bank 4:20(40) CITY OF CUPERTINO Printed on 1/23/2026Page 1 of 1 powered by Legistar™188 AUDIT COMMITTEE STAFF REPORT Meeting: January 26, 2026 Subject Consider the Other Post-Employment Benefits (OPEB) and Pension Trust Investment Policies Recommended Action Review and accept the OPEB and Pension Trust Investment Policies Discussion Background In Fiscal Year (FY) 2009-10, the City established a Section 115 Trust to help fund its retiree health obligations, also known as OPEB. In FY 2017-18, the City also established a Section 115 Trust to pre-fund its pension obligations and reduce the potential impact of pension cost volatility on the City's operating budget. OPEB and Pension Trusts Section 115 Trust Overview A Section 115 Trust is a tax-exempt investment tool that allows local governments to pre- fund pension and retiree health costs. The benefits of a Section 115 Trust include the following: Local control over assets: The City controls the contributions, withdrawals, investment strategy, and risk level of assets in the Trust. Potential for higher investment returns than General Fund: Investment requirements that apply to the City's General Fund assets under Government Code 53601 are not applicable to Trust assets. Pension rate stabilization: Assets can be transferred to CalPERS at the City 's discretion to pay for Normal Cost or Unfunded Accrued Liability (UAL) contributions and can be used to reduce or eliminate large fluctuations in the City's pension costs. Diversification: Trust assets will be diversified from CalPERS investments. 189 2 OPEB Trust Overview In FY 2009-10, the City established a Section 115 Trust to help fund its retiree health obligations, also known as OPEB. Compared to a pay-as-you-go plan, the OPEB Trust allows the City to: Grow assets to pay future OPEB benefits. Earn higher returns than the General Fund. Reduce its total cost for providing post-employment benefits. Reduce its Net OPEB Liability. In July 2010, the City contributed $7.0 million in initial funding. With additional contributions of $12.3 million, total contributions to date are $19.3 million. As of June 30, 2025, the City's OPEB Trust had a market value of $42.7 million and had earned an annualized investment return of 7.68% gross of fees since inception. Time Period Annualized Investment Return 1 Year 12.80% 5 Year 8.93% Since Inception 7.68% 1-Year investment returns were impacted by financial market volatility due to heightened geopolitical risk, supply chain bottlenecks and persistent inflation, and the Federal Reserve’s pivot to a less accommodative monetary policy. As of the June 30, 2025, measurement date, using a 6.5% discount rate, the City’s OPEB plan had an accrued liability of $41.5 million and a market value of assets of $42.7 million, resulting in a net asset of $1.3 million and a funded ratio of 103.0%. Compared to June 30, 2024, the unfunded accrued liability became a net asset, primarily due to favorable market conditions. June 30, 2023* June 30, 2024* June 30, 2025* Accrued Liability 35,290,000 40,389,000 41,472,000 Market Value of Assets 34,708,000 38,013,000 42,734,000 Unfunded Accrued Liability 582,000 2,376,000 (1,262,000) Funded Ratio 98.4% 94.1% 103.0% *Amounts provided from Actuarial Report, as opposed to PARS provided. Pension Trust Overview Since pension obligations are one of the City's largest financial obligations, the City has taken proactive steps to reduce the impacts of pension cost volatility. In March 2018, the City provided options to Council to address rising pension costs. In April 2018, the City presented a long-term pension funding strategy to the Fiscal Strategic Plan Committee. In May 2018, the City adopted a Section 115 Trust, also known as a Pension Rate Stabilization 190 3 Program (PRSP), to reduce pension rate volatility on the City's budget. The Pension Trust helps the City to: Grow assets for future pension contributions. Invest assets over appropriate time horizons. Earn higher investment returns than the General Fund. Reduce pension contribution volatility. Diversify funds from CalPERS investments. As a fiscal sustainability measure, the City funds the Pension Trust using a more conservative discount rate of 6.25%. The City's pension funding goal is to accumulate sufficient funds in the Pension Trust to fund the difference between a 6.25% and a 7% discount rate and achieve a funded status of 80% by FY 2036-37, 20 years from the adoption of the Pension Trust. The City's projections indicated that it would need to accumulate over $42 million in the Pension Trust within 20 years to achieve its pension funding goal. As a result, the funding strategy proposed $8.0 million in initial funding, along with additional funding of $10.0 million over the first five years. To date, the City has contributed $16.0 million, including: $8.0 million in FY 2018-19 $4.0 million in FY 2019-20 $2.0 million in FY 2020-21 $2.0 million in FY 2021-22 As of June 30, 2025, the City's Pension Trust had a market value of $24.3 million, a year- over-year increase of $2.7 million, and had earned an annualized investment return of 8.03% gross of fees since inception. Time Period Annualized Investment Return 1 Year 5 Year 12.64% 8.86% Since Inception 8.03% Driven by favorable market performance, the Trust achieved a 12.64% return over the past year. Five-year and since-inception returns remain strong at 8.86% and 8.03%, respectively, underscoring the City’s long-term strategy to promote pension funding stability. OPEB and Pension Trust Investment Policies The Audit Committee is responsible for reviewing the OPEB and Pension Trust investment policies annually, appointing investment managers, and monitoring 191 4 investment performance. The City Council is responsible for annually adopting the OPEB and Pension Trust investment policies. It is not expected that the OPEB and Pension Trust investment policies will change frequently. Short-term changes in the financial markets should not require adjustments to the policies. The Audit Committee last reviewed the policies on October 31, 2024, with City Council adopting the policies on December 3, 2024. Public Agency Retirement Services (PARS) is the City’s Trust Administrator and PFM Asset Management is the City’s Investment Manager for the Pension and OPEB Trusts. The Investment Manager manages the investments per the investment policies. Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules. OPEB and Pension Trust Investment Objectives The OPEB Trust has a “Balanced” investment objective with a target rate of return of 6.50%, and the Pension Trust has a “Balanced” investment objective with a target rate of return of 6.25%. The “Balanced” investment objective is designed to provide a moderate amount of current income with moderate growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended for investors with a long-term time horizon. As part of ongoing efforts to align with evolving industry best practices and enhance portfolio diversification, Global Infrastructure has been formally incorporated into the strategic asset allocation. Similar to Real Estate and Commodities, Global Infrastructure is recognized for its inflation-hedging characteristics, stable cash flows, and historically low correlation to traditional equities and fixed income assets. The strategic asset allocation ranges and tactical targets for this objective are listed below: Asset Class Range Target Fixed Income 20-40% 29% Equities 50-70% 63% Real Estate 0-10% 3.5% Global Infrastructure 0-10% 3.5% Commodities 0-10% 0% Cash 0-10% 1% 192 5 The target rates of return are based on the long-term expected rate of return for assets in the trusts and the City's time horizon for the investments. With strong reserves and a fully funded OPEB plan, the City can maintain a long-term investment horizon with a “balanced” investment objective. There may be periods of substantial decline in investment value, and the portfolio should expect periodic volatility. However, a 6.56% return on investment is expected over the long-term, based on the current investment objective. More conservative investment objectives such as “moderate” and “moderate-conservative” would expect less volatility and declines in investment value; however, over the long term, they would also expect lower returns. Many agencies anticipate needing to access the funds in their respective trusts sooner and invest with more emphasis on preserving capital in the near term. The OPEB Trust has a higher discount rate than the Pension Trust because OPEB investments are expected to have a longer time horizon. OPEB obligations are generally longer in duration, and the City expects to withdraw Pension Trust funds earlier to fund CalPERS contributions. Given that changes to the CalPERS discount rate have larger effects on the City's operating budget and are farther out of the City's control, it is important that the City be able to use the Trust to pay CalPERS contributions as needed. Sustainability Impact There is no sustainability impact. Fiscal Impact There is no direct fiscal impact at this time. _____________________________________ Prepared by: Jonathan Orozco, Acting Director of Administrative Services and City Approved for Submission by: Tina Kapoor, City Manager Attachments: A – OPEB Trust Investment Policy B – Pension Trust Investment Policy 193 1 | P a g e Other Post- Employment Benefits (OPEB) Investment Policy Citywide Policy Manual Attachments: N/A Effective Date: January 26, 2026 Nove mber 19, 2024 Responsible Department: Administrative Services Related Policies & Notes: City Investment Policy, Pension Investment Policy Overview In response to the Government Accounting Standards Board (GASB) Statement No. 45, replaced by GASB Statement No. 74 and GASB Statement No. 75, new disclosure requirements for Other Post-employment Benefit (OPEB) Plans, the City of Cupertino has adopted a Section 115 Trust and Plan that seeks to satisfy these liabilities for certain eligible employees Executive Summary Account Name: City of Cupertino OPEB Trust Account Number: 6746035000 Investment Authority: Full Investment Authority Current Assets: $45.1 40.7 m illion (September 2025 2024) Time Horizon: Long-Term Target Rate of Return: 6.5% Communication Schedule: Meetings will be conducted at least quarterly U.S. Bank Portfolio Manager: Dennis Mullins Dennis.mullins@usbank.com 513-304-0398 U.S. Bank Relationship Manager : Ryan Maxey ryan.maxey@usbank.com 503-464-3789 194 2 | P a g e Investment Objective: ‘Balanced’ This investment objective is designed to provide a moderate amount of current income with moderate growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended for investors with a long-term time horizon. The strategic asset allocation ranges and tactical targets for this objective are listed below: Investment Guidelines Overview This document defines the investment policy, guidelines and performance objectives applicable to the assets of The City of Cupertino’s OPEB Trust. The goal of this Policy is to create an investment framework within which the assets can be actively yet prudently managed. The purpose of this document is threefold. First, it will set forth an investment structure for managing the Portfolio assets. This structure is expected to produce an appropriate level of overall diversification and total investment return over the investment time horizon. Second, it will serve as to encourage effective communications between the organization and parties involved with investment management decisions. Third, these guidelines will provide a framework to measure ongoing investment performance. Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules, which state: “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” All applicable laws, rules and regulations from various local, state, federal and international political entities that may impact the Portfolio are to be adhered to. Asset Class Range Benchmark Target Fixed Income Equities Real Estate Global Infrastructure Commodities Cash 195 3 | P a g e Diversification Your Portfolio Manager is responsible for maintaining the balance between the various asset classes based on the investment objective’s strategic asset allocation. As a general policy, the Investment Manager will maintain reasonable diversification at all times by asset class, credit quality, issuer, sector, industry, and country. The following parameters shall be adhered to in managing the portfolio: Fixed Income Assets •The fixed income investments are to maintain intermediate -term average weighted duration, between three-seven years. •At the time of purchase, no single fixed income issuer shall exceed 2% of the total market value of the Portfolio, with the exception of U.S. Treasury or Agency obligations. •The direct high-yield portion shall constitute no more than 10% of the total market value of the Portfolio. •Hedged fixed income positions shall constitute no more than 10% of the total market value of the Portfolio. Equity & Growth Assets •The domestic equity investments are expected to be diversified at all times by size, industry, sector, and style (Large Cap, Mid Cap, and Small Cap). •At the time of purchase, no individual equity security shall exceed 2% of the total market value of the Portfolio. •The real estate investments shall be captured through the use of diversified mutual funds or ETFs investing in REITs; and shall constitute no more than 15% of the total market value of the Portfolio . •The commodities investments shall be captured through the use of diversified mutual funds or ETFs; and shall constitute no more than 10% of the total market value of the Portfolio. •Hedged equity positions shall constitute no more than 10% of the total market value of the Portfolio Permitted Asset Classes and Security Types Fixed Income & Cash Equivalent Investments: Domestic Certificates of Deposit (rated A-1/P-1 or better) Domestic Commercial Paper (rated A-1/P-1 or better) Floating Rate Notes Money Market Mutual Funds U.S. Treasury Bonds, Bills and Notes U.S. Agency (and Instrumentality) Discount Notes, Notes, and Bonds Treasury Inflation-Protected Securities (TIPS) Municipal Bonds and Notes Corporate Bonds Mortgage-Backed Bonds (MBS) 196 4 | P a g e Asset-Backed Bonds (ABS) High-Yield Bonds (rated B-/B3 or better) Dollar denominated Foreign Bonds and Notes Bond Mutual Funds Equity Investments: Common & Preferred Stocks American Depository Receipts (ADRs) Domestic and International Equity Mutual Funds (Open and Closed) Emerging Market Equity Funds or Exchange Traded Funds (ETFs) Alternative Investments: Commodities Mutual Funds or Exchange Traded Notes (ETNs) REIT Investment or Pooled Strategy or Fund of REITs Registered Hedge Funds or Hedge Fund of Funds Global Infrastructure Mutual Funds or Exchange Traded Funds Prohibited Asset Classes and Transactions The Investment Manager is prohibited from purchasing or holding any of the following types of investments: Partnerships unless investing in Master Limited Partnerships invested in a mutual fund and limited in scope and allocation of Portfolio based on asset class limitations of table above Letter stock and other unregistered securities; physical commodities or other commodity contracts; and short sales or margin transactions Investments in the equity securities of any company with a record of less than three years continuous operation, including the operation of any predecessor Investments for the purpose of exercising control of management Direct or indirect exposure to cryptocurrencies Leveraged securities, other than registered Hedged Equity and Hedged Fixed Income positions Duties and Responsibilities 1) CITY OF CUPERTINO AUDIT COMMITTEE a)Establish, approve, and maintain investment objectives, guidelines, and policies (including this Policy). b)Appoint Investment Managers who can be reasonably expected to adhere to the investment guidelines and meet the investment objectives as established. c)Monitor the investment performance of the Portfolio and compare actual investment performance relative to an appropriate benchmark index given the stated investment guidelines and objectives set forth in this Policy. d)Conduct a formal review of the Portfolio’s asset allocation, investment structure and performance annually or more frequently as the need arises. 197 5 | P a g e e)Periodically review the Portfolio performance against objectives. 2) CITY OF CUPERTINO CITY COUNCIL a)Adopt the Policy by resolution of the City Council on an annual basis. 3) PORTFOLIO MANAGER The Portfolio Manager will be responsible for carrying out the activities related to the Portfolio in accordance with the Policy including: a)Manage the day-to-day investment of Portfolio assets in accordance with the Policy guidelines and objectives included herein. b)Exercise full investment discretion and prudence in the selection and diversification of investments. c)Promptly bring to the attention of the City Treasurer or designee any investment that is subsequently downgraded and fails to meet the quality guidelines, along with a recommendation of retention or disposal. d)Provide on a quarterly basis the following investment reporting: (i)Year-to-date rate of return (ii)Annualized one, three, five, etc. rates of return e)Provide annually to the City’s Audit Committee a commentary and analysis of investment performance to include an evaluation of the current and future investment environment and potential impact of the investment environment on achievement of investment objectives. Investment Policy Statement Review The City’s Audit Committee will review and the Cupertino City Council will adopt this Investment Policy Statement at least annually to determine whether stated investment objectives are still relevant and the continued feasibility of achieving the same. It is not expected that the Policy will change frequently. In particular, short-term changes in the financial markets should not require adjustments to the Policy. If at any time the Portfolio Manager finds the above guidelines too restrictive or possibly injurious to investment returns, they should communicate that information immediately to the City’s Audit Committee. City Manager’s signature: _______________________________ Date: _______________________________ 198 6 | P a g e Revisions: 6.5.2018, 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023, 12.03.2024 Director of Administrative Services’ signature: _______________________________ Date: _______________________________ 199 1 | P a g e Pension Trust Investment Policy Citywide Policy Manual Attachments: N/A Effective Date: January 26, 2026 Nove mber 19, 2024 Responsible Department: Administrative Services Related Policies & Notes: N/A Investment Policy Statement Overview The City has established a Section 115 Trust with PARS to assist in stabilizing the potential impact of pension cost volatility on the City’s operating budget. The City intends to use the Section 115 Trust to pre-fund pension costs and proactively address the unfunded liability. The City’s goal is to have sufficient assets in the trust to increase the funded status to over 80% within 20 years, as well as fund the difference between a 7.0% and 6.25% discount rate. Executive Summary Account Name: City of Cupertino Pension Trust Account Number: 6746050100 Investment Authority: Full Investment Authority Current Assets: $25.6 23.0 Million (September 2025 2024) Time Horizon: Long-Term Target Rate of Return: 6.25% Communication Schedule: Meetings will be conducted at least quarterly U.S. Bank Portfolio Manager: Dennis Mullins Dennis.mullins@usbank.com 513-304-0398 U.S. Bank Relationship Manager : Ryan Maxey ryan.maxey@usbank.com 503-464-3789 200 2 | P a g e Investment Objective: ‘Balanced’ This investment objective is designed to provide a moderate amount of current income with moderate growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended for investors with a long-term time horizon. The strategic asset allocation ranges and tactical targets for this objective are listed below: Investment Guidelines Overview This document defines the investment policy, guidelines and performance objectives applicable to the assets of The City of Cupertino’s Pension Trust. The goal of this Policy is to create an investment framework within which the assets can be actively yet prudently managed. The purpose of this document is threefold. First, it will set forth an investment structure for managing the Portfolio assets. This structure is expected to produce an appropriate level of overall diversification and total investment return over the investment time horizon. Second, it will serve as to encourage effective communications between the organization and parties involved with investment management decisions. Third, these guidelines will provide a framework to measure ongoing investment performance. Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules, which state: “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” All applicable laws, rules and regulations from various local, state, federal and international political entities that may impact the Portfolio are to be adhered to. Asset Class Range Benchmark Target Fixed Income Equities Real Estate Global Infrastructure Commodities Cash 201 3 | P a g e Diversification Your Portfolio Manager is responsible for maintaining the balance between the various asset classes based on the investment objective’s strategic asset allocation. As a general policy, the Investment Manager will maintain reasonable diversification at all times by asset class, credit quality, issuer, sector, industry, and country. The following parameters shall be adhered to in managing the portfolio: Fixed Income Assets •The fixed income investments are to maintain intermediate -term average weighted duration, between three-seven years. •At the time of purchase, no single fixed income issuer shall exceed 2% of the total market value of the Portfolio, with the exception of U.S. Treasury or Agency obligations. •The direct high-yield portion shall constitute no more than 10% of the total market value of the Portfolio. •Hedged fixed income positions shall constitute no more than 10% of the total market value of the Portfolio Equity & Growth Assets •The domestic equity investments are expected to be diversified at all times by size, industry, sector, and style (Large Cap, Mid Cap, and Small Cap). •At the time of purchase, no individual equity security shall exceed 2% of the total market value of the Portfolio. •The real estate investments shall be captured through the use of diversified mutual funds or ETFs investing in REITs; and shall constitute no more than 15% of the total market value of the Portfolio . •The commodities investments shall be captured through the use of diversified mutual funds or ETFs; and shall constitute no more than 10% of the total market value of the Portfolio. •Hedged equity positions shall constitute no more than 10% of the total market value of the Portfolio Permitted Asset Classes and Security Types Fixed Income & Cash Equivalent Investments: Domestic Certificates of Deposit (rated A-1/P-1 or better) Domestic Commercial Paper (rated A-1/P-1 or better) Floating Rate Notes Money Market Mutual Funds U.S. Treasury Bonds, Bills and Notes U.S. Agency (and Instrumentality) Discount Notes, Notes, and Bonds Treasury Inflation-Protected Securities (TIPS) Municipal Bonds and Notes Corporate Bonds Mortgage-Backed Bonds (MBS) 202 4 | P a g e Asset-Backed Bonds (ABS) High-Yield Bonds (rated B-/B3 or better) Dollar denominated Foreign Bonds and Notes Bond Mutual Funds Equity Investments: Common & Preferred Stocks American Depository Receipts (ADRs) Domestic and International Equity Mutual Funds (Open and Closed) Emerging Market Equity Funds or Exchange Traded Funds (ETFs) Alternative Investments: Commodities Mutual Funds or Exchange Traded Notes (ETNs) REIT Investment or Pooled Strategy or Fund of REITs Registered Hedge Funds or Hedge Fund of Funds Global Infrastructure Mutual Funds or Exchange Traded Funds Prohibited Asset Classes and Transactions The Investment Manager is prohibited from purchasing or holding any of the following types of investments: Partnerships unless investing in Master Limited Partnerships invested in a mutual fund and limited in scope and allocation of Portfolio based on asset class limitations of table above Letter stock and other unregistered securities; physical commodities or other commodity contracts; and short sales or margin transactions Investments in the equity securities of any company with a record of less than three years continuous operation, including the operation of any predecessor Investments for the purpose of exercising control of management Direct or indirect exposure to cryptocurrencies Leveraged securities, other than registered Hedged Equity and Hedged Fixed Income positions Duties and Responsibilities 1) CITY OF CUPERTINO AUDIT COMMITTEE a)Establish, approve, and maintain investment objectives, guidelines, and policies (including this Policy). b)Appoint Investment Managers who can be reasonably expected to adhere to the investment guidelines and meet the investment objectives as established. c)Monitor the investment performance of the Portfolio and compare actual investment performance relative to an appropriate benchmark index given the stated investment guidelines and objectives set forth in this Policy. d)Conduct a formal review of the Portfolio’s asset allocation, investment structure and performance annually or more frequently as the need arises. 203 5 | P a g e e)Periodically review the Portfolio performance against objectives. 2) CITY OF CUPERTINO CITY COUNCIL a)Adopt the Policy by resolution of the City Council on an annual basis. 3) PORTFOLIO MANAGER The Portfolio Manager will be responsible for carrying out the activities related to the Portfolio in accordance with the Policy including: a)Manage the day-to-day investment of Portfolio assets in accordance with the Policy guidelines and objectives included herein. b)Exercise full investment discretion and prudence in the selection and diversification of investments. c)Promptly bring to the attention of the City Treasurer or designee any investment that is subsequently downgraded and fails to meet the quality guidelines, along with a recommendation of retention or disposal. d)Provide on a quarterly basis the following investment reporting: (i)Year-to-date rate of return (ii)Annualized one, three, five, etc. rates of return e)Provide annually to the City’s Audit Committee a commentary and analysis of investment performance to include an evaluation of the current and future investment environment and potential impact of the investment environment on achievement of investment objectives. Investment Policy Statement Review The City’s Audit Committee will review and the Cupertino City Council will adopt this Investment Policy Statement at least annually to determine whether stated investment objectives are still relevant and the continued feasibility of achieving the same. It is not expected that the Policy will change frequently. In particular, short-term changes in the financial markets should not require adjustments to the Policy. If at any time the Portfolio Manager finds the above guidelines too restrictive or possibly injurious to investment returns, they should communicate that information immediately to the City’s Audit Committee. City Manager’s signature: _______________________________ Date: _______________________________ 204 6 | P a g e Revisions: 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023, 12.03.2024 Director of Administrative Services’ signature: _______________________________ Date: _______________________________ 205 CITY OF CUPERTINO Agenda Item 26-14800 Agenda Date: 1/26/2026 Agenda #: 6. Subject:INFORMATIONAL ITEM Receive the Internal Audit and Fraud,Waste,and Abuse programs update Receive the Internal Audit and Fraud, Waste, and Abuse programs update Presenter: Baker Tilly 5:00(15) CITY OF CUPERTINO Printed on 1/23/2026Page 1 of 1 powered by Legistar™206 January 16, 2026 To: City of Cupertino Audit Committee From: Baker Tilly Subject: Internal Audit Status Report October 22, 2025 through January 16, 2026 _____ FY24-25 INTERNAL AUDIT PROGRAM GRANTS MANAGEMENT INTERNAL CONTROLS REVIEW Objective Assess the internal controls in place over the City’s grants management activities (including applications, review, administration, and reporting). Schedule April 2025 through January 2026 Activities for This Period Provided draft report to the city, incorporated feedback and finalize report. Activities for Next Period Finalize report. Issues Waiting to receive feedback from City officials to finalize report \ FY25-26 INTERNAL AUDIT PROGRAM COUNCIL -WIDE POLICY REVIEW INVENTORY INVESTMENT/CASH FLOW POLICY REVIEW/RECOMMENDATION CITY -WIDE INTERNAL CONTROL REVIEW ONGOING INTERNAL AUDIT SERVICES Objective Review and provide recommendations to align council policies with best practices. Review and provide best practice recommendations over City’s investment/cash flow policy. Conduct a review of the City’s internal controls framework in key areas that are deemed important to protecting City assets and resources. Attend Audit Committee and Council meetings, prepare status reports, manage internal audit program, and monitor FWA hotline. Schedule November 2025 through March 2026 October 2025 through February 2026 December 2025 through April 2026 July 2025 through June 2026 Activities for This Period Initiated project, held kickoff meeting, sent document request, and conducted interviews. Reviewed policies and developed best practice recommendations. Held kickoff meeting and sent document request. Continue to monitor FWA hotline, perform validation continuation, and provide ongoing support to City. Activities for Next Period Finish final interviews and draft report. Work with City on initial feedback and finalize policies. Perform interviews, provide preliminary observations, test select high-risk controls, draft report, incorporate report feedback, and provide final report to the City. Continue to monitor FWA hotline and provide ongoing support to City. Issues None None None None 207 Complaint Type Complaints Received This Quarter Under Review Referred to Appropriate City Official(s) Open Compliance & Ethics 1 1 1 0 1 Fraud 0 0 0 0 0 Employment Matters 0 0 0 0 0 HOTLINE STATISTICS: LIFETIME (OCTOBER 2022 -PRESENT) OUTSTANDING REPORTS – DAYS OPEN Total Reports 39 Open Reports Days Outstanding Last D ay BT Follow - up Reports Closed 31 Report 2000302663 693 12/5/25 Reports Open 8 Report 2000309461 671 12/5/25 Report 2000311746 663 12/5/25 Report 2000320154 636 12/5/25 Report 2000320491 634 12/5/25 Report 2000435031 271 12/5/25 Report 2000465974 181 12/5/25 Report 2000520302 34 12/13/25 208 City of Cupertino- Audit Recommendations Tracking Report 1/16/2026 ( A) ( B)( C)( D) Reports Total Recommendations Open Recommendations (Not Yet Completed by City) Validated Recommendations (By Baker Tilly) Reportable Recommendations (Newly validated since last summary) Total 78 27 51 2 Legend: 209 Item No.Finding Recommendation Baker Tilly Determination Notes 51A 2023 ELA-23 governance groups represents a significant investment of City resources. meetings. directors attend commission and committee meetings and determined department heads are not required at meetings and will be requested on a case by case basis, as determined by the City Manager. 60 2023 LECA-23 Rights Secured Confirmation ensuring that all parties involved in the Project’s design understand their responsibilities regarding their design documents. If deemed necessary at this point in the Project, the City should request that the design build entity obtain the necessary documentation from its subcontractors and subconsultants to secure the rights of use for the City. specific language around right of use for subcontractors. See Section 2.3 (D) that outlines the documents are the City's property and cannot be used without their written consent. 210 CITY OF CUPERTINO Agenda Item 26-14802 Agenda Date: 1/26/2026 Agenda #: 8. Subject:INFORMATIONAL ITEM Receive the proposed Audit Committee 2026 Schedule and Workplan Receive the proposed Audit Committee 2026 Schedule and Workplan Presenter: Jonathan Orozco, Acting Director of Administrative Services and City Treasurer 5:15(5) CITY OF CUPERTINO Printed on 1/23/2026Page 1 of 1 powered by Legistar™211 January 26, 2026 Re ular Meetin April 27, 2026 Re ular Meetin July 27, 2026 Re ular Meetin October 26, 2026 Re ular Meetin November/December 2026 S ecial Meetin Appoint Audit Committee Chair and Vice Chair Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes OPEB & Pension Trust Performance Report for Quarter Ending March 31, 2026 OPEB & Pension Trust Performance Report for Quarter Ending June 30, 2026 OPEB & Pension Trust Performance Report for Quarter Ending September 30, 2026 Review of FY 2025/26 ACFR OPEB & Pension Trust Performance Report for Quarter Ending December 31, 2025 Quarterly Treasurerʹs Investment Report for Quarter Ending March 31, 2026 Quarterly Treasurerʹs Investment Report for Quarter Ending June 30, 2026 Quarterly Treasurerʹs Investment Report for Quarter Ending September 30, 2026 OPEB & Pension Trust Policy Review Internal Audit and Fraud, Waste, and Abuse Programs Update Internal Audit and Fraud, Waste, and Abuse Program Update Internal Audit and Fraud, Waste, and Abuse Program Update Quarterly Treasurerʹs Investment Report for Quarter Ending December 31, 2025 Annual Review of City Investment Policy Fiscal Year 2025‐26 ACFR Interim Testing Update Annual Review of OPEB and Pension Trust Investment Policies Internal Audit and Fraud, Waste, and Abuse Programs Update Internal Audit Program Fiscal Year 2025‐26 ACFR Update FY 24‐25 Agreed Upon Procedures (AUP) Review ‐ GANN Limit, Investment Policy, Storm Drain Audit Committee Roles and Responsibilities Summary of Duties – Powers – Responsibilities of Cupertino Audit Committee Source: Cupertino, CA Municipal Code, Chapter 2.88.100: Audit Committee The powers and functions of the Audit Committee shall be as follows: To review the annual audit report and management letter; To recommend appointment of auditors; To review the quarterly Treasurer’s Investment report; To recommend a budget format; To review City investment policies and internal controls of such policies. To recommend appointment of internal auditors; To review internal audit reports. To review quarterly Fraud, Waste, and Abuse Program reports. (Ord. 22-2243 § 1, 2023; Ord. 20-2208, § 1, 2020; Ord. 1679, § 1 (part), 1995) CITY OF CUPERTINO ‐ AUDIT COMMITTEE 2026 SCHEDULE AND WORK PLAN 21 2