Attachment_C_-_Milpitas_Quarterly_Investment_Report_4FQ26.pdf

Memorandum Finance Department

TO: Mayor and City Councilmembers THROUGH: Willie A. Hopkins, Jr., City Manager FROM: Luz Cofresí-Howe, Finance Director CC: Scott Transou, Assistant City Manager SUBJECT: City of Milpitas Investment Report

Fiscal Quarter Ended June 30, 2026 DATE: August 14, 2026

BACKGROUND

In compliance with State of California Government Code Section 53646(b)(1) and the City Investment Policy, the City of Milpitas Investment Report (Report) for the period ended June 30, 2026, is submitted for City Council review. The City Investment Policy requires the Report to be submitted to the City Council within 45 days following the end of each quarter.

Compliance with the applicable investment policy for each portfolio is addressed in the respective sections below.

As demonstrated in the table below, the City investment program comprises a portfolio of securities professionally managed by Chandler Asset Management, the City general portfolio investment advisor, moneys invested in Local Agency Investment Fund (or “LAIF,” an investment pool managed by the California State Treasurer), bond funds, and cash, together with the Section 115 Trust Portfolio, professionally managed by PFM Asset Management under the Section 115 Investment Policy adopted by the Section 115 Pension Trust Committee.

Investments and Cash Par Value Book Value Market Value Yield to Maturity

Investments Portfolio of Securities 303,090,363.92 302,311,743.14 301,592,567.66 4.13%

LAIF 74,629,539.29 74,629,539.29 74,629,539.29 3.82%

Total Investments $377,719,903.21 $376,941,282.43 $376,222,106.95 4.07% Cash

Bond Funds (Restricted) 5,888.58 5,888.58 5,888.58 0.00% Cash 38,433,885.92 38,433,885.92 38,433,885.92 0.00%

Total Cash $38,439,774.50 $38,439,774.50 $38,439,774.50 0.00% Accrued Interest 2,343,398.57

Total Cash and Investments

$416,159,677.71 $415,381,056.93 $417,005,280.02 3.78%

Section 115 Trust (Restricted) n/a n/a 46,027,071.00 n/a

Total Cash, Investments, and Section 115 Trust n/a n/a $463,032,351.02 n/a https://www.milpitas.gov/DocumentCenter/View/8994/FY2025-26-Annual-Investment-Policy-PDF-https://www.milpitas.gov/DocumentCenter/View/636/City-of-Milpitas-Section-115-Pension-Trust-Fund-PDF

TO: Mayor and City Councilmembers SUBJECT: City of Milpitas Investment Report Quarter Ended June 30, 2026 DATE: August 14, 2026

PAGE: 2 | 5

The cash balance includes $637,012 of interest receivable from the LAIF account. The prior quarter’s report excluded LAIF interest receivable from the cash figure.

The cash figure also includes $8,958,288 held in a money market fund yielding 3.52%; the remainder of the cash balance is non-interest bearing. This is the reason the total yield to maturity of 3.78% exceeds a weighted average of the line items shown above.

The Section 115 Trust, established under Section 115 of the Internal Revenue Code, is a multi-asset portfolio reported by PFM Asset Management at market value only; par and book values are not applicable, and total return rather than yield to maturity is the relevant performance measure. The subtotals above the Section 115 Trust line reflect the City General Portfolio and tie to the attached General Portfolio report.

CITY GENERAL PORTFOLIO

The City General Portfolio is managed in accordance with the City Investment Policy, whose objectives are, in order of priority, safety of principal, liquidity, and return. Chandler Asset Management reports that the portfolio was in compliance with the City Investment Policy and California Government Code Section 53601 at June 30, 2026.

DISCUSSION

The attached General Portfolio report provides an update on the current economic conditions, a summary of compliance with California Government Code and the City Investment Policy, and certain metrics to understand the current state of the City investments in comparison to the previous quarter. Further, it includes a detail of the City holdings as of June 30, including par, cost, book, and market values, yields, average maturity and duration, and unrealized gain/loss position. The attachment also includes transactions for the past quarter. As part of its overall investment program, the City funded an additional Liquidity Account managed by the City general portfolio investment advisor to hold liquid funds beyond the $75 million maximum balance permitted in the City’s LAIF account. This Liquidity Account continues to perform as designed.

INVESTMENTS AND CASH

City investments remain well diversified by sector, issuer, and maturity. When including LAIF and cash, the City's investments have a total market value of $417,005,280 (including accrued interest) and an average maturity of 1.88 years. The portfolio’s purchase yield to maturity – the yield embedded in current holdings as of June 30 – was 3.78%, lower than the purchase yield of 3.91% on March 31. The increase in cash holdings drove the movement of this rate. Cash and LAIF balances rose approximately $22.0 million during the quarter, primarily reflecting seasonal timing of property-tax and related intergovernmental revenue distributions. During the quarter, Milpitas received substantial secured property-tax, RPTTF, and Excess ERAF distributions, including approximately $13.8 million of RPTTF revenue and $5.3 million of Excess ERAF revenue, along with an additional $7.1 million secured-property-tax distribution. The market yield, which is indicative of the reinvestment rate on the portfolio, was 3.82%, above the market yield of 3.78% reported on March 31.

Quarter Ended June 30, 2026

PAGE: 3 | 5

PORTFOLIO OF SECURITIES

The investment strategy of the City's professionally managed portfolio of securities is designed to enhance total return over long-term periods but focuses on achieving higher interest income through the investment of City funds in longer-duration securities. Interest income is generated by the yield of securities held in the portfolio, and fair value appreciation is closely tied to factors such as supply and demand, market rates, and the general health of the economy. All investments are purchased with the intent to hold them to maturity but may be sold if fair value, credit quality, or liquidity can be enhanced safely. This quarter, the City’s investment manager lowered the portfolio duration (a risk measure similar to average maturity) from 2.50 years at March 31 to 2.46 years, neutral to the duration of the City’s performance measurement benchmark (2.46 years), to minimize the volatility expected as a result of geopolitically-driven rate movements.

As of June 30, the City's core portfolio of securities totaled $265,414,215, including accrued interest. Its purchase yield to maturity as of June 30 was 4.24% (versus 4.23% three months prior), and its market yield was 4.30%. The portfolio maintained an average maturity of 2.97 years, similar to last quarter. At June 30, the market value of the consolidated account was approximately $719,000 below its book value, compared with a net unrealized gain three months prior. The change reflects the rise in market yields during the quarter rather than any deterioration in credit quality; because securities are purchased with the intent to hold them to maturity, these valuation differences are expected to reverse as holdings mature. Returns for the professionally managed portfolio are detailed in the attached General Portfolio report.

For the quarter, the portfolio returned 0.38%, compared to its benchmark return of 0.24%, and returned 3.09% over the trailing twelve months, compared to 2.71% for the benchmark. The City's additional Liquidity Account totaled $38,521,751, including accrued interest. Its purchase and market yields were both 3.44%. For the quarter, the Liquidity Account returned 0.85%, compared to the ICE BofA 3-Month U.S. Treasury Bill Index return of 0.89%. The account is managed to track the index closely, so its return is expected to approximate the benchmark. As yields evolve, City staff, with the City investment advisor's guidance, will reallocate funds to optimize for liquidity and return.

CASH

As of June 30, 2026, the City held approximately $38.4 million in cash. The cash balance includes an estimated $637,000 in interest receivable from the LAIF account. Restricted bond funds declined from $614,664 on March 31 to $5,889 on June 30, with $594,850 expended for debt service on the Milpitas Municipal Financing Authority 2019 Wastewater Revenue Bonds during the fourth fiscal quarter.

This cash total, along with expected revenues such as tax receipts, will adequately cover the anticipated cash flow needs for the next six months. Cash flow requirements are continually monitored and are considered paramount in the selection of maturity dates of securities.

Quarter Ended June 30, 2026

PAGE: 4 | 5

SECTION 115 TRUST PORTFOLIO

In 2021, the City established a Section 115 Trust, which is a tax-exempt, irrevocable trust to set aside funds for paying postretirement employee benefits. The Trust was established by City Council Resolution No. 9071 and holds California Public Employees’ Retirement System (CalPERS) Rate Stabilization Reserve funds set aside to mitigate the budgetary impact of rising pension costs. This investment portfolio is managed by PFM Asset Management, a division of U.S. Bancorp Asset Management, Inc.

For the quarter, the Trust returned 7.65%, compared to its blended benchmark return of 7.80%, with an ending market value of $46,027,071, up from $42,753,906 at March 31. The increase reflects $3,273,165 in investment earnings, with no contributions to or withdrawals from the Trust during the quarter. Since its inception in July 2021, the Trust has returned 5.39% on an annualized basis, compared to 5.50% for the blended benchmark. Over the trailing three years, the Trust returned 12.01% on an annualized basis, compared to 11.94% for the blended benchmark. As of June 30, the Trust’s allocation of 33.14% domestic equity, 17.52% international equity, 49.05% fixed income, and 0.29% cash equivalents was within all target ranges established for the Trust. Detailed information is included in the attached Section 115 Pension Trust Fund report.

Trust assets are held in an irrevocable trust and are not subject to the City Investment Policy or California Government Code Section 53601. The Trust is governed by the Section 115 Investment Policy adopted by the City of Milpitas Section 115 Pension Trust Committee, whose objectives are to invest solely in the interest of Trust beneficiaries with sufficient diversification, to provide for anticipated withdrawals, to enhance the value of Trust assets in real terms while maintaining a reasonable risk profile, and to achieve an average annual return of 3% to 6% over a horizon of five years or longer. The since-inception return of 5.39% is within that range. As reported by PFM Asset Management, each asset class was within its policy allocation range at June 30, 2026.

ECONOMIC OVERVIEW

The discussion below reflects economic and market conditions as of June 30, 2026 and does not account for developments after quarter end. Energy prices and inflation remained the primary drivers of the macro backdrop as the U.S.-Israel-Iran conflict entered its third month, disrupting global oil supply. Headline Consumer Price Index (CPI) inflation accelerated at the fastest pace in more than three years, reflecting volatility in the energy component. Crude oil, however, pulled back roughly 20% from its May to early June peak as diplomatic progress between the United States and Iran pointed to a potential framework for de-escalation. The labor market remained resilient, with continued payroll growth and subdued jobless claims. Risk assets held firm, as equities hovered near record highs and credit spreads remained historically tight amid broadly better-than-expected corporate earnings. Taken together, the current market environment has further constrained the case for near-term monetary policy easing and pushed the expected timing of rate cuts beyond the six-month investment horizon.

Quarter Ended June 30, 2026

PAGE: 5 | 5

The Federal Reserve’s June Federal Open Market Committee (FOMC) meeting ended with policymakers unanimously holding the target range at 3.50%–3.75%, a notable shift from the 8 to 4 split at April’s meeting, which marked Jerome Powell’s final session as Chair. Under new Chair Kevin Warsh, sworn in on May 22, the Committee released an unusually concise statement that referenced Middle East tensions and energy supply disruptions while removing prior forward guidance that had suggested a bias toward rate cuts. Updated projections leaned more hawkish, with 9 of 18 officials expecting at least one rate hike this year and 6 anticipating multiple increases. The vote reflects the Committee’s decision at this meeting; the projections reflect individual participants’ expectations for the balance of the year. The shift signals that restoring price stability has reemerged as the central focus of monetary policy deliberations.

SUMMARY

Both portfolios met the objectives established for them during the quarter. The City General Portfolio complied with the City Investment Policy and California Government Code Section 53601 and holds sufficient liquidity to meet all anticipated cash needs over the next six months.

Its portfolio of securities outperformed its benchmark for the quarter and the trailing twelve months, while the Liquidity Account returned slightly below its index. The Section 115 Trust Portfolio complied with the Section 115 Investment Policy, with each asset class within its allocation range. The Trust trailed its blended benchmark for the quarter and the trailing twelve months and outperformed it over the trailing three years, returning 12.01% against 11.94%, and its since-inception return of 5.39% remains within the 3% to 6% earnings goal adopted by City Council in Resolution No. 9071.

ATTACHMENTS

(a) City of Milpitas General Portfolio 2026FQ4

(b) City of Milpitas Section 115 Pension Trust Fund 2026FQ4

INVESTMENT REPORT

City of Milpitas | As of June 30, 2026

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.

mailto:clientservice@chandlerasset.com

TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

CONSOLIDATED INFORMATION

PORTFOLIO HOLDINGS

TRANSACTIONS

Energy prices and inflation remained the primary drivers of the macro backdrop as the U.S.-Israel-Iran conflict entered its third month, disrupting global oil supply. Headline CPI accelerated at the fastest pace in more than three years, reflecting volatility in the energy component. Crude oil, however, retraced roughly 20% from its May–early June peak as diplomatic progress between the United States and

Iran pointed to a potential framework for de-escalation. The labor market remained resilient, with continued payroll growth and subdued jobless claims. Risk assets held firm, as equities hovered near record highs and credit spreads remained historically tight amid broadly better-than-expected corporate earnings. Taken together, the current market environment has further constrained the case for near-term monetary policy easing, leading the Chandler team to push out its expected timing for rate cuts beyond the six-month investment horizon.

The Federal Reserve’s June FOMC meeting ended with policymakers unanimously holding the target range at 3.50%–3.75%, a notable shift from the 8–4 split at April’s meeting, which marked Jerome Powell’s final session as Chair. Under new Chair Kevin Warsh, sworn in on May

22, the Committee released an unusually concise statement that referenced Middle East tensions and energy supply disruptions while removing prior forward guidance that had suggested a bias toward rate cuts. Updated projections leaned more hawkish, with 9 of 18 officials expecting at least one rate hike this year and 6 anticipating multiple increases. The shift signals that restoring price stability has reemerged as the central focus of monetary policy deliberations.

The Treasury yield curve flattened modestly in June as short-term yields responded to a more hawkish shift in Federal Reserve guidance.

The 2-year yield rose to 4.15% from 3.98% the prior month, while the 10-year yield edged down slightly to 4.44% from 4.45%. As a result, the 2s/10s spread narrowed to 29 basis points, down from roughly 47 basis points a month earlier and significantly below the 69 basis point spread at the start of the year. Meanwhile, the 3-month/10-year spread remained positive at 64 basis points. Front-end rates absorbed the bulk of the Fed’s updated rate outlook, while longer maturities were partly anchored by a late-month decline in oil prices.

-400

-200

1,000

M O

M C h a n g e I n T h o u sa n d s (0

's

Nonfarm Payroll (000's)

Non-farm Payroll (000's)

3-month average (000's)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Unemployment Rate

Underemployment Rate (U6)

Unemployment Rate (U3)

R at e

Nonfarm payrolls increased by just 57,000 in June, well below the 113,000 consensus and marking a sharp slowdown from May’s pace. The unemployment rate edged down to 4.2%, though the decline was driven by a drop in labor force participation to 61.5%, its lowest level since March 2021. Revisions further weakened the report’s signal. April payrolls were revised down by 31,000 to 148,000, while May was lowered by 43,000 to 129,000, resulting in a combined two-month downward revision of 74,000.

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Job Openings

Recession

Historical Average

In T h o u sa n d s (0

's

Job openings were essentially unchanged at 7.6 million in May, remaining elevated by historical standards even as hiring momentum moderates. Gains in wholesale trade and accommodation and food services were offset by declines in health care and social assistance, as well as finance and insurance. April openings were revised down by 33,000 to 7.6 million, while hires were revised up by 99,000, highlighting ongoing churn but a broadly stable labor market backdrop.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY

Source: Bloomberg Indices Source: Bloomberg Indices

ENERGY MARKETS

Crude oil prices declined sharply in June as supply disruptions tied to the Middle East conflict began to ease. Tanker traffic through the

Strait of Hormuz normalized, and signs of progress in U.S.–Iran negotiations helped unwind the geopolitical risk premium that had driven prices higher earlier in the year. West Texas Intermediate settled near $69.37 per barrel on June 30, while Brent crude closed around

$72.96, both well below their recent peaks. Brent’s 21% monthly decline marked its steepest drop since March 2020, while WTI fell more than 20%, its largest monthly loss since late 2021. Beyond crude, broader energy markets also softened. Refined product cracks narrowed as gasoline and diesel demand showed signs of seasonal moderation, while U.S. natural gas prices remained range-bound amid ample storage and steady production. Taken together, the retracement in oil and broader energy prices reflects a rapid compression in geopolitical risk premia and improved near-term supply visibility, even as underlying structural risks in the region remain unresolved.

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

US Fuel Prices

Average Retail Price US Diesel

Average Retail Price US Gas

P e r G a ll o n

Oil Prices

West Texas Intermediate (WTI Spot Cushing)

Dated Brent (Global Spot)

P ri ce P e r

B a rr e l (W

T I S p o t)

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 % Change

PCE Core Deflator YOY % Change

Fed Target

Y O

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%

9.0%

10.0%

Consumer Price Index (CPI)

CPI YOY % Change

Core CPI YOY % Change

Y O

Y

C h a n g e

Inflation firmed in May, with the Personal Consumption Expenditures (PCE) price index rising 0.4% on the month and 4.1% year over year, up from 3.8% in April and marking the highest annual rate of the current cycle. Core PCE, which excludes food and energy, increased 0.3% in May and 3.4% over the year. Energy prices remained the primary driver of the headline acceleration, reflecting supply disruptions tied to the Iranian conflict. A similar pattern was evident in the headline Consumer Price Index (CPI), which rose 0.5% on the month and 4.2% year over year, the fastest annual pace since 2023. Energy prices climbed 3.9% in May and 23.5% from a year earlier, largely due to crude oil reaching a four-year high. In contrast, core CPI rose a more modest 0.2% on the month and 2.9% year over year, indicating that inflation pressures remain concentrated in energy rather than broad-based.

Source: US Department of Labor Source: US Department of Commerce

INFLATION

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Retail Sales YOY % Change

Y O

Y

C h a n g e

Retail sales rose a robust 0.9% in May to $763.7 billion, nearly double the pace economists had penciled in and an acceleration from April's downwardly revised 0.4% gain. The closely watched control group, which feeds directly into gross domestic product calculations, advanced

0.7%, pointing to durable underlying demand. Gasoline station receipts rose as energy prices stayed high, while auto sales rebounded after an April pullback. The Conference Board's Consumer Confidence Index ticked up 0.6 points to 91.2 in June, though the improvement masked a further deterioration in how households view the job market, with the share calling jobs ‘hard-to-get’ climbing to a five year high.

Spending has proven more resilient than sentiment across recent months.

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

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

Leading Economic Indicators (LEI)

Recession

Y O

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

M o n th A v e ra g e The Conference Board’s Leading Economic Index (LEI) edged up 0.1% in May to 99.3, following a revised 0.2% increase in April. Despite the monthly gains, the LEI’s six- and twelve-month growth rates remained negative at -0.6% and -1.5%, respectively. The advance was driven primarily by financial components, including equity prices and the interest rate spread, while consumer expectations continued to weigh on the index. The Chicago Fed National Activity Index fell to -0.10 in May from an upwardly revised 0.19 in April. Production-related and employment-related indicators each subtracted from the index, while the sales, orders, and inventories category made a small positive contribution.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

In T h o u sa n d s o f U n it s

Annualized Housing Starts

Multi Family Housing Starts

Single Family Housing Starts

Housing starts declined sharply in May to a seasonally adjusted annual rate of 1,177,000, a 15.4% drop from a downwardly revised

1,392,000 in April. The pullback was driven primarily by multifamily construction, while single-family starts edged down a more modest

1.9% to 882,000; total multifamily starts came in at 295,000 units. The S&P CoreLogic Case-Shiller 20-City Composite rose 1.1% year over year in April, marking its first pickup since November 2025, following an upwardly revised 0.9% gain in March. Freddie Mac’s average 30-year fixed mortgage rate increased to 6.44% in May from 6.33% in April, reinforcing ongoing affordability constraints for prospective buyers.

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

Y O

Y

C h a n g e

HOUSING

Institute of Supply Management (ISM) Surveys

ISM Manufacturing ISM Services

EXPANDING

CONTRACTING

Manufacturing activity cooled slightly in June, with the Institute for Supply Management's Manufacturing Index easing to 53.3%, down 0.7 percentage point from May but still marking a sixth consecutive month of expansion. Services activity also moderated, as the ISM Services

Index eased to 54.0% from 54.5%, a twenty-fourth consecutive month in expansion territory. Business activity and new orders both slowed, though the employment component jumped to 51.2% from 47.9%, its strongest reading since late 2021 and the first expansion in services hiring in four months.

Source: Institute for Supply Management

PURCHASING MANAGERS INDEX (PMI)

Components of GDP 6/25 9/25 12/25 3/26

1.7% 2.3% 1.3% 0.4%

-2.7% 0.0% 0.4% 1.4%

4.8% 1.6% -0.2% -0.4%

-0.4% 0.2% -1.2% 0.6%

0.3% 0.2% 0.2% 0.2%

3.8% 4.4% 0.5% 2.1%

Personal Consumption Expenditures

Gross Private Domestic Investment

Net Exports and Imports

Federal Government Expenditures

Total

State and Local (Consumption and Gross

Investment) -2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Gross Domestic Product (GDP)

GDP QOQ % Change

GDP YOY % Change

Source: US Department of Commerce Source: US Department of Commerce

Real gross domestic product increased at an annualized rate of 2.1% in the first quarter of 2026, according to the Bureau of Economic

Analysis’ third estimate, up from 1.6% in the prior estimate and an acceleration from 0.5% in the fourth quarter of 2025. The 0.5 percentage point upward revision was driven primarily by a downward revision to imports—which subtract from GDP—partly offset by a downward revision to consumer spending.

GROSS DOMESTIC PRODUCT (GDP)

Source: Federal Reserve Source: Bloomberg

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 il li o n s

The Federal Open Market Committee (FOMC) held the target range for the federal funds rate at 3.50% to 3.75% at its June 16–17 meeting, with a unanimous 12–0 vote. This marked a notable shift from the April meeting—Jerome Powell’s last as chair—which saw four dissents in an 8–4 decision. The return to consensus under Chair Kevin Warsh signals a clear change in tone. Minutes from the June meeting are scheduled for release in early July. The June Summary of Economic Projections reflected a more hawkish outlook. The median projection for the federal funds rate at year-end 2026 rose to 3.8%, up from 3.4% in March, before easing to 3.6% in 2027 and 3.4% in 2028. Officials also revised their inflation forecasts, with headline PCE projected at 3.6% in 2026 (from 2.7%) and core PCE at 3.3%. By contrast, median projections for real GDP growth and the unemployment rate—2.2% and 4.3%, respectively—were little changed.

FEDERAL RESERVE

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

Effective Federal Funds Rate

Recession

Y ie ld

Source: Bloomberg Source: Bloomberg

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

US Treasury Note Yields

2-Year

5-Year

10-Year

Y ie ld

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5% US Treasury Yield Curve

Jun-26

Mar-26

Jun-25

Y ie ld

Treasury yields ended June mixed, with a modest flattening across the curve as markets digested a more hawkish Federal Reserve signal.

The 2-year yield rose to 4.15% from 3.98% at the end of May, while the 10-year yield edged down to 4.44% from 4.45%. The 2s/10s spread narrowed to 29 basis points, down from 47 basis points a month earlier. The 3-month/10-year spread remained positive at roughly 64 basis points at month-end. Relative to the 69 basis point spread at the start of 2026, the curve has flattened materially year to date, reflecting a repricing higher in front-end rates as expectations shift toward the possibility of further Fed tightening rather than easing.

BOND YIELDS

ACCOUNT PROFILE

OBJECTIVES

Investment Objectives

The investment objectives for the City of Milpitas, 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 this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds.

STATEMENT OF COMPLIANCE

City of Milpitas | Account #10762 | As of June 30, 2026

Rules Name Limit Actual Compliance

Status Notes

AGENCY MORTGAGE SECURITIES

Max % (MV) 100.0 4.2 Compliant

Max % Issuer (MV; Agencies & Agency CMOs) 30.0 4.2 Compliant

Max Maturity (Years) 5.0 3.2 Compliant

ASSET-BACKED SECURITIES (ABS

Max % (MV; Non Agency ABS & MBS) 20.0 11.3 Compliant

Max % Issuer (MV) 5.0 1.6 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

COLLATERALIZED TIME DEPOSITS (NON-

NEGOTIABLE CD/TD)

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

Max % (MV) 30.0 25.0 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 Maturity (Years) 5 0.0 Compliant

Rules Name Limit Actual Compliance

Status Notes

FEDERAL AGENCIES

Max % (MV) 100.0 2.8 Compliant

Max % Issuer (MV; Agencies & Agency CMOs) 30.0 4.2 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

LOCAL GOVERNMENT INVESTMENT POOL (LGIP)

Max % (MV) 20.0 0.0 Compliant

Max % Issuer (MV) 10.0 0.0 Compliant

Min Rating (AAA by 1) 0.0 0.0 Compliant

MONEY MARKET MUTUAL FUNDS

Max % (MV) 20.0 0.4 Compliant

Max % Issuer (MV) 10.0 0.4 Compliant

Min Rating (AAA by 2) 0.0 0.0 Compliant

MORTGAGE-BACKED SECURITIES (NON-AGENCY)

Max % (MV; Non Agency ABS & MBS) 20.0 11.3 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; All Municipal Securities) 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

MUNICIPAL SECURITIES (CA, OTHER STATES)

Max % (MV; All Municipal Securities) 30.0 0.0 Compliant

Max % Issuer (MV) 5.0 0.0 Compliant

Max Maturity (Years) 5 0.0 Compliant

Rules Name Limit Actual Compliance

Status Notes

Min Rating (A- by 1) 0.0 0.0 Compliant

NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)

Max % (MV) 30.0 0.0 Compliant

Max % Issuer (MV) 5.0 0.0 Compliant

Max Maturity (Years) 5 0.0 Compliant

Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit) 0.0 0.0 Compliant

REPURCHASE AGREEMENTS

Max Maturity (Years) 1.0 0.0 Compliant

SRI PROHIBITED INVESTMENTS

Prohibited Investment - Fossil Fuels 0.0 0.0 Compliant

Prohibited Investments - Energy 0.0 0.0 Compliant

SUPRANATIONAL OBLIGATIONS

Max % (MV) 30.0 6.2 Compliant

Max % Issuer (MV) 10.0 3.8 Compliant

Max Maturity (Years) 5 3 Compliant

Min Rating (AA- by 1) 0.0 0.0 Compliant

U.S. TREASURIES

Max % (MV) 100.0 50.0 Compliant

Max Maturity (Years) 5 5 Compliant

PORTFOLIO CHARACTERISTICS

Benchmark* 6/30/2026 Portfolio

3/31/2026 Portfolio

Average Maturity (yrs) 2.64 2.97 3.00

Average Modified Duration 2.46 2.46 2.50

Average Purchase Yield 4.24% 4.23%

Average Market Yield 4.16% 4.30% 4.03%

Average Quality** AA+ AA+ AA+

Total Market Value 265,414,215 264,419,379

*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.

SECTOR DISTRIBUTION

Sector as a Percentage of Market Value

Sector 06/30/2026 03/31/2026

US Treasury 50.01% 49.53%

Corporate 24.90% 26.17%

ABS 11.40% 11.29%

Supras 6.18% 6.25%

Agency CMBS 4.27% 3.58%

Agency 2.83% 2.86%

Money Mkt Fd 0.40% 0.32%

QUALITY DISTRIBUTION

S&P Rating Moody’s Rating Fitch Rating

Rating 06/30/2026 03/31/2026

AAA 15.76% 15.52%

AA 62.77% 61.35%

A 15.68% 17.76%

BBB 2.91% 2.36%

NA 2.88% 3.00%

Rating 06/30/2026 03/31/2026

Aaa 13.43% 13.70%

Aa 62.19% 60.78%

A 18.98% 20.50%

NA 5.40% 5.02%

Rating 06/30/2026 03/31/2026

AAA 11.96% 10.90%

AA 59.57% 61.88%

A 12.31% 11.87%

NA 16.16% 15.35%

DURATION DISTRIBUTION

Portfolio Compared to the Benchmark

0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+

Portfolio 1.7% 0.2% 8.4% 28.2% 28.1% 23.6% 9.8% 0.0% 0.0%

ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index

0.0% 0.0% 2.5% 36.2% 28.4% 20.6% 12.3% 0.0% 0.0%

INVESTMENT PERFORMANCE

Total Rate of Return: Inception | 06/01/2020

TOTAL RATE OF RETURN* 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception

City of Milpitas 0.38% 3.09% 4.73% 4.71% 1.95% 1.61%

Benchmark 0.24% 2.71% 4.37% 4.30% 1.52% 1.21%

*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.

Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index

HISTORICAL AVERAGE PURCHASE YIELD

Purchase Yield as of 06/30/26 = 4.24%

City of Milpitas Liquidity Account | Account #10770 | As of June 30, 2026

Benchmark* 6/30/2026 Portfolio

3/31/2026 Portfolio

Average Maturity (yrs) 0.16 0.00 0.00

Average Modified Duration 0.16 0.00 0.00

Average Purchase Yield 3.44% 3.43%

Average Market Yield 3.71% 3.44% 3.43%

Average Quality** AA+ AAA AAA

Total Market Value 38,521,751 38,195,671

*Benchmark: ICE BofA 3-Month US Treasury Bill Index

Sector as a Percentage of Market Value

Sector 06/30/2026 03/31/2026

Money Mkt Fd 99.72% 99.71%

Cash 0.28% 0.29%

Portfolio Compared to the Benchmark

0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+

Portfolio 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

ICE BofA 3-Month US Treasury Bill Index 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

INVESTMENT PERFORMANCE

Total Rate of Return: Inception | 02/01/2024

TOTAL RATE OF RETURN* 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception

Milpitas Liquidity Account 0.85% 3.74% 4.21% 4.42%

Benchmark 0.89% 3.84% 4.26% 4.45%

*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.

Benchmark: ICE BofA 3-Month US Treasury Bill Index

City of Milpitas Reporting Account | Account #10769 | As of June 30, 2026

6/30/2026 Portfolio

3/31/2026 Portfolio

Average Maturity (yrs) 0.00 0.00

Average Modified Duration 0.00 0.00

Average Purchase Yield 2.82% 3.21%

Average Market Yield 2.82% 3.21%

Average Quality** AAA AAA

Total Market Value 113,069,314 91,203,688

*Benchmark: NO BENCHMARK REQUIRED

Sector as a Percentage of Market Value

Sector 06/30/2026 03/31/2026

LAIF 66.00% 74.60%

Cash 26.07% 15.66%

Money Mkt Fd 7.92% 9.74%

CONSOLIDATED INFORMATION

City of Milpitas Cons | Account #10771 | As of June 30, 2026

6/30/2026 Portfolio

3/31/2026 Portfolio

Average Maturity (yrs) 1.88 2.01

Average Modified Duration 1.56 1.67

Average Purchase Yield 3.78% 3.91%

Average Market Yield 3.82% 3.78%

Average Quality** AA+ AA+

Total Market Value 417,005,280 393,818,738

*Benchmark: NO BENCHMARK REQUIRED

Sector as a Percentage of Market Value

Sector 06/30/2026 03/31/2026

US Treasury 31.73% 33.17%

LAIF 18.00% 17.36%

Corporate 15.80% 17.53%

Money Mkt Fd 11.68% 12.20%

ABS 7.23% 7.56%

Cash 7.14% 3.67%

Supras 3.92% 4.18%

Agency CMBS 2.71% 2.40%

Agency 1.80% 1.91%

Date 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+

06/30/2026 37.4% 0.1% 5.3% 17.9% 17.9% 15.0% 6.2% 0.0% 0.0%

03/31/2026 33.8% 1.0% 4.5% 14.5% 26.4% 11.9% 7.9% 0.0% 0.0%

ISSUERS

Issuer Investment Type % Portfolio

United States US Treasury 31.73%

LAIF LAIF 18.00%

BNY Mellon Corp Money Mkt Fd 11.68%

JPMorgan Chase & Co. Cash 6.95%

Federal Home Loan Mortgage Corp Agency CMBS 2.71%

International Bank for Recon and Dev Supras 2.39%

Federal Home Loan Banks Agency 1.27%

Inter-American Development Bank Supras 1.21%

Chase Issuance Trust ABS 1.00%

Wells Fargo & Company Corporate 0.86%

Bank of America Corporation Corporate 0.84%

Morgan Stanley Corporate 0.79%

Merck & Co., Inc. Corporate 0.75%

Toyota Motor Corporation Corporate 0.71%

Amazon.com, Inc. Corporate 0.67%

Deere & Company Corporate 0.62%

The Goldman Sachs Group, Inc. Corporate 0.61%

Abbvie Inc. Corporate 0.61%

BMW Vehicle Lease Trust ABS 0.61%

BMW Vehicle Owner Trust ABS 0.58%

Guardian Life Global Funding Corporate 0.57%

Caterpillar Inc. Corporate 0.56%

The Charles Schwab Corporation Corporate 0.55%

U.S. Bancorp Corporate 0.55%

UnitedHealth Group Incorporated Corporate 0.54%

John Deere Owner Trust ABS 0.54%

Berkshire Hathaway Inc. Corporate 0.53%

Tennessee Valley Authority Agency 0.52%

American Express Credit Master Trust ABS 0.50%

GM Financial Auto Leasing Trust ABS 0.48%

Issuer Investment Type % Portfolio

JPMorgan Chase & Co. Corporate 0.48%

Citigroup Inc. ABS 0.48%

Metropolitan Life Global Funding I Corporate 0.46%

Realty Income Corporation Corporate 0.43%

Massachusetts Mutual Life Insurance Corporate 0.42%

Honda Auto Receivables Owner Trust ABS 0.41%

Northwestern Mutual Global Funding Corporate 0.41%

American Express Company Corporate 0.37%

The Home Depot, Inc. Corporate 0.37%

PNC Financial Services Corporate 0.36%

Walmart Inc. Corporate 0.36%

Hyundai Motor Company ABS 0.36%

Simon Property Group, Inc. Corporate 0.36%

Cargill, Incorporated Corporate 0.35%

Hyundai Auto Lease Sec Trust ABS 0.34%

WF Card Issuance Trust ABS 0.33%

International Finance Corporation Supras 0.32%

NVIDIA Corporation Corporate 0.32%

Cisco Systems, Inc. Corporate 0.32%

Qualcomm Incorporated Corporate 0.30%

Bank of America Credit Card Trust ABS 0.30%

Mercedes-Benz Auto Lease Trust ABS 0.28%

Dominion Energy, Inc. Corporate 0.24%

Public Storage OP, LP Corporate 0.24%

Hyundai Auto Receivables Trust ABS 0.23%

T-Mobile Us Trust 2026-1 ABS 0.23%

Toyota Auto Receivables Owner Trust ABS 0.21%

GM Financial Securitized Term ABS 0.19%

Cash Cash 0.18%

Toyota Lease Owner Trust ABS 0.18%

Issuer Investment Type % Portfolio

Salesforce, Inc. Corporate 0.14%

American Honda Finance Corporation Corporate 0.13%

Mercedes-Benz Auto Receivables Trust ABS 0.00%

US Bank Cash 0.00%

TOTAL 100.00%

PORTFOLIO HOLDINGS

HOLDINGS REPORT

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

36269WAD1

GMALT 2024-2 A3 5.39

07/20/2027

108,166.27 05/07/2024

5.85% 108,159.98 108,164.19

100.09 3.93%

108,259.18 178.14

0.04% 95.00

NA/AAA

AAA

1.05 0.06

58768PAC8

MBART 2022-1 A3 5.21

08/16/2027

10,135.13 11/15/2022

5.27% 10,133.12 10,134.66

100.05 3.85%

10,140.58 23.47

0.00% 5.93

Aaa/AAA

NA

1.13 0.04

891943AD4 TLOT 2024-B A3 4.21 09/20/2027 743,789.91

09/10/2024

4.21% 743,702.89 743,754.56

100.02 4.17%

743,902.22 956.80

0.28% 147.66

Aaa/NA

AAA

1.22 0.19

58770JAD6

MBALT 2024-A A3 5.32

01/18/2028

422,867.16 05/17/2024

5.73% 422,817.69 422,846.19

100.35 4.20%

424,356.08 999.85

0.16% 1,509.89

Aaa/NA

AAA

1.55 0.30

36271VAD9

GMALT 2025-1 A3 4.66

02/21/2028

1,040,000.00 02/05/2025

4.66% 1,039,877.28 1,039,933.30

100.19 4.34%

1,041,931.28 1,480.84

0.40% 1,997.98

NA/AAA

AAA

1.65 0.50

05592XAD2

BMWOT 2023-A A3 5.47

02/25/2028

77,822.86 07/11/2023

5.47% 77,809.07 77,817.91

100.33 4.10%

78,078.43 70.95

0.03% 260.52

NA/AAA

AAA

1.66 0.23

44935DAD1 HALST 2025-B A3 4.53 04/17/2028 600,000.00

04/24/2025

4.53% 599,945.82 599,967.18

100.19 4.33%

601,121.40 1,208.00

0.23% 1,154.22

NA/AAA

AAA

1.80 0.78

89239FAD4 TAOT 2023-D A3 5.54 08/15/2028 334,967.40

11/07/2023

5.61% 334,931.29 334,951.26

100.63 4.41%

337,080.71 824.76

0.13% 2,129.45

NA/AAA

AAA

2.13 0.53

161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 2,545,000.00

09/07/2023

5.23% 2,544,294.53 2,544,688.39

100.25 3.96%

2,551,410.86 5,836.53

0.97% 6,722.46

NA/AAA

AAA

2.21 0.20

05594HAD5

BMWLT 2025-2 A3 3.97

09/25/2028

1,335,000.00 10/08/2025

4.32% 1,334,996.26 1,334,997.16

99.67 4.34%

1,330,658.58 883.33

0.51% (4,338.58)

NA/AAA

AAA

2.24 0.97

47800RAD5 JDOT 2024 A3 4.96 11/15/2028 298,197.94

03/11/2024

5.12% 298,181.24 298,189.43

100.37 4.44%

299,309.33 657.36

0.11% 1,119.90

Aaa/NA

AAA

2.38 0.65

437930AC4

HAROT 2024-2 A3 5.27

11/20/2028

512,029.40 05/14/2024

5.27% 511,967.19 511,996.36

100.54 4.37%

514,806.14 974.42

0.20% 2,809.77

NA/AAA

AAA

2.39 0.56

448970AD5

HALST 2026-A A3 3.97

12/15/2028

805,000.00 01/12/2026

3.98% 804,881.99 804,899.93

99.32 4.46%

799,565.45 1,420.38

0.30% (5,334.49)

NA/AAA

AAA

2.46 1.49

36268GAD7

GMCAR 2024-1 A3 4.85

12/18/2028

181,591.65 01/09/2024

4.91% 181,555.13 181,573.34

100.28 4.28%

182,093.75 366.97

0.07% 520.41

Aaa/NA

AAA

2.47 0.45

161571HV9 CHAIT 241 A 4.6 01/16/2029 1,580,000.00

01/24/2024

4.61% 1,579,759.37 1,579,876.50

100.22 4.22%

1,583,477.58 3,230.22

0.60% 3,601.08

NA/AAA

AAA

2.55 0.52

448973AD9 HART 2024-A A3 4.99 02/15/2029 371,662.52

03/11/2024

5.05% 371,580.57 371,618.64

100.34 4.37%

372,937.32 824.26

0.14% 1,318.68

NA/AAA

AAA

2.63 0.51

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

096919AD7

BMWOT 2024-A A3 5.18

02/26/2029

670,524.57 06/04/2024

5.18% 670,422.72 670,467.11

100.51 4.33%

673,918.77 578.89

0.26% 3,451.66

Aaa/AAA

NA

2.66 0.56

47786WAD2 JDOT 2024-B A3 5.2 03/15/2029 738,336.92

06/11/2024

5.81% 738,192.57 738,254.53

100.64 4.40%

743,055.63 1,706.38

0.28% 4,801.10

Aaa/NA

AAA

2.71 0.74

44934QAD3 HART 2024-B A3 4.84 03/15/2029 560,888.63

07/16/2024

5.45% 560,804.00 560,839.30

100.30 4.40%

562,580.84 1,206.53

0.21% 1,741.53

NA/AAA

AAA

2.71 0.61

36275AAD1 GMALT 2026-2 A3 4.3 03/20/2029 860,000.00

05/05/2026

4.40% 859,906.95 859,911.24

99.86 4.43%

858,758.16 924.50

0.33% (1,153.08)

NA/AAA

AAA

2.72 1.57

43813YAC6

HAROT 2024-3 A3 4.57

03/21/2029

1,184,239.99 08/09/2024

4.66% 1,184,053.94 1,184,129.45

100.20 4.31%

1,186,587.15 1,503.33

0.45% 2,457.70

Aaa/NA

AAA

2.72 0.64

05522RDJ4 BACCT 2024-1 A 4.93 05/15/2029 1,220,000.00

06/06/2024

4.93% 1,219,931.56 1,219,960.20

100.65 4.21%

1,227,875.10 2,673.16

0.47% 7,914.90

Aaa/AAA

NA

2.87 0.84

05594YAD8

BMWLT 2026-1 A3 4.15

05/25/2029

1,190,000.00 04/14/2026

4.85% 1,189,868.51 1,189,876.66

99.56 4.46%

1,184,734.25 823.08

0.45% (5,142.41)

Aaa/NA

AAA

2.90 1.65

89239TAD4 TAOT 2024-D A3 4.4 06/15/2029 547,470.52

10/10/2024

4.51% 547,439.98 547,451.14

100.05 4.37%

547,765.61 1,070.61

0.21% 314.47

Aaa/AAA

NA

2.96 0.72

47800DAD6 JDOT 2025 A3 4.23 09/17/2029 1,210,000.00

03/04/2025

5.09% 1,209,923.89 1,209,945.88

99.88 4.35%

1,208,500.81 2,274.80

0.46% (1,445.07)

Aaa/NA

AAA

3.22 1.47

096924AD7

BMWOT 2025-A A3 4.56

09/25/2029

1,630,000.00 02/04/2025

4.56% 1,629,839.45 1,629,887.45

100.25 4.28%

1,634,030.99 1,238.80

0.62% 4,143.54

Aaa/AAA

NA

3.24 0.77

92970QAE5 WFCIT 2024-2 A 4.29 10/15/2029 1,355,000.00

10/17/2024

4.29% 1,354,798.65 1,354,866.80

100.06 4.28%

1,355,815.71 2,583.53

0.52% 948.91

Aaa/AAA

NA

3.29 1.23

58770YAD3

MBALT 2026-A A3 3.93

01/15/2030

725,000.00 01/13/2026

3.97% 724,856.23 724,872.14

99.21 4.40%

719,296.43 1,266.33

0.27% (5,575.71)

Aaa/NA

AAA

3.54 1.78

02582JKP4 AMXCA 2025-2 A 4.28 04/15/2030 2,085,000.00

05/06/2025

4.28% 2,084,962.26 2,084,970.95

99.90 4.38%

2,082,898.32 3,966.13

0.79% (2,072.63)

NA/AAA

AAA

3.79 1.69

362549AD9

GMCAR 2025-2 A3 4.28

04/16/2030

615,000.00 05/06/2025

4.71% 614,909.47 614,930.26

100.01 4.31%

615,076.88 1,096.75

0.23% 146.61

Aaa/AAA

NA

3.79 0.92

17305EHA6 CCCIT 2025-A1 A1 4.3 06/21/2030 1,980,000.00

06/18/2025

4.31% 1,979,462.83 1,979,571.98

99.83 4.39%

1,976,653.80 2,365.00

0.75% (2,918.18)

Aaa/AAA

NA

3.97 1.87

87269AAA8 TMUST 2026-1 A 4.25 10/21/2030 940,000.00

03/12/2026

4.26% 939,800.53 939,812.79

99.47 4.54%

935,047.14 1,220.69

0.36% (4,765.65)

Aaa/NA

AAA

4.31 2.09

44935KAD5 HART 26B A3 4.81 02/18/2031 1,485,000.00

06/09/2026

4.86% 1,484,820.76 1,484,822.23

100.24 4.44%

1,488,569.94 2,777.78

0.57% 3,747.71

NA/AAA

AAA

4.64 2.20

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

29,958,587.73 100.06 29,980,294.39 11.40% 2.94 Total ABS 29,962,690.88 4.70% 29,959,979.11 4.31% 49,212.58 20,315.29 1.06

AGENCY

3130ATS57

FEDERAL HOME LOAN BANKS 4.5

03/10/2028

3,000,000.00 03/21/2023

4.01% 3,065,010.00 3,022,135.64

100.53 4.17%

3,015,927.00 41,625.00

1.15% (6,208.64)

Aa1/AA+

AA+

1.70 1.59

880591EZ1

TENNESSEE VALLEY AUTHORITY

3.875 03/15/2028

2,180,000.00

3.73% 2,193,838.05 2,184,833.52

99.60 4.12%

2,171,280.00 24,873.19

0.83% (13,553.52)

Aa1/AA+

AA+

1.71 1.62

3130AWMN7

FEDERAL HOME LOAN BANKS

4.375 06/09/2028

2,250,000.00 07/26/2023

4.27% 2,259,922.50 2,253,954.50

100.40 4.16%

2,259,002.25 6,015.63

0.86% 5,047.75

Aa1/AA+

AA+

1.94 1.84

7,518,770.55 100.22 7,446,209.25 2.83% 1.77 Total Agency 7,430,000.00 4.01% 7,460,923.66 4.15% 72,513.82 (14,714.41) 1.67

AGENCY CMBS

3137FJKE8 FHMS K-082 A2 3.92 09/25/2028 1,280,000.00

10/30/2023

5.31% 1,204,150.00 1,245,921.22

98.81 4.41%

1,264,788.48 4,181.33

0.48% 18,867.26

Aa1/AA+

AAA

2.24 2.02

3137FKUP9 FHMS K-087 A2 3.771 12/25/2028 1,929,399.14

07/01/2024

4.86% 1,845,816.97 1,883,506.82

98.38 4.42%

1,898,102.36 6,063.14

0.72% 14,595.54

Aa1/AAA

AA+

2.49 2.22

3137H5YC5 FHMS K-748 A2 2.26 01/25/2029 1,500,000.00

08/26/2024

4.08% 1,391,953.13 1,437,665.27

94.87 4.43%

1,423,003.50 2,825.00

0.54% (14,661.77)

Aa1/AA+

AAA

2.57 2.36

3137FKZZ2 FHMS K-088 A2 3.69 01/25/2029 2,440,000.00

03/26/2026

4.24% 2,401,779.69 2,405,271.52

98.12 4.43%

2,394,162.16 7,503.00

0.91% (11,109.36)

Aaa/AA+

AA+

2.57 2.33

3137FMTY8 FHMS K-094 A2 2.903 06/25/2029 2,000,000.00

04/27/2026

4.06% 1,931,171.88 1,934,954.99

95.77 4.43%

1,915,358.00 4,838.33

0.73% (19,596.99)

Aa1/AA+

AAA

2.99 2.73

3137H9D71 FHMS K-750 A2 3.0 09/25/2029 2,440,000.00

10/18/2024

4.25% 2,313,234.38 2,357,252.21

96.12 4.43%

2,345,281.64 6,100.00

0.89% (11,970.57)

Aa1/AA+

AAA

3.24 2.66

11,088,106.05 97.01 11,240,696.14 4.27% 2.73 Total Agency CMBS 11,589,399.14 4.42% 11,264,572.01 4.43% 31,510.80 (23,875.88) 2.41

CASH

CCYUSD Receivable 9,479.76 -- 9,479.76

9,479.76

1.00 9,479.76

0.00 0.00%

0.00 Aaa/AAA

AAA

0.00 0.00

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 Cash 9,479.76 9,479.76 9,479.76

1.00 9,479.76 0.00

0.00% 0.00

0.00 0.00

CORPORATE

59217GER6

METROPOLITAN LIFE GLOBAL

FUNDING I 1.875 01/11/2027

1,910,000.00 01/03/2022

1.90% 1,907,822.60 1,909,768.67

98.79 4.22%

1,886,841.25 16,911.46

0.72% (22,927.42)

Aa3/AA-

AA-

0.53 0.51

808513BY0

CHARLES SCHWAB CORP 2.45

03/03/2027

2,300,000.00

2.78% 2,264,361.50 2,295,182.17

98.80 4.27%

2,272,494.30 18,470.28

0.86% (22,687.87)

A2/A- A

0.67 0.65

084664CZ2

BERKSHIRE HATHAWAY FINANCE

CORP 2.3 03/15/2027

2,215,000.00 03/07/2022

2.30% 2,214,579.15 2,214,940.77

98.68 4.21%

2,185,777.51 15,000.47

0.83% (29,163.26)

Aa2/AA A+

0.71 0.69

927804GH1

VIRGINIA ELECTRIC AND POWER

CO 3.75 05/15/2027

1,000,000.00

3.75% 999,943.60 999,963.13

99.53 4.30%

995,341.00 4,791.67

0.38% (4,622.13)

A3/BBB+

A

0.87 0.84

58933YBC8 MERCK & CO INC 1.7 06/10/2027 1,650,000.00

06/23/2022

3.79% 1,494,124.50 1,620,358.67

97.72 4.19%

1,612,391.55 1,636.25

0.61% (7,967.12)

Aa3/A+

NA

0.94 0.92

14913R3A3

CATERPILLAR FINANCIAL SERVICES

CORP 3.6 08/12/2027

1,310,000.00

3.78% 1,299,403.10 1,307,604.80

99.32 4.23%

1,301,043.53 18,209.00

0.49% (6,561.27)

A1/A A+

1.12 1.06

931142EX7 WALMART INC 3.95 09/09/2027 1,500,000.00

3.97% 1,498,350.80 1,499,607.12

99.74 4.17%

1,496,095.50 18,433.33

0.57% (3,511.62)

Aa2/AA

AA

1.19 1.14

24422EWK1

JOHN DEERE CAPITAL CORP 4.15

09/15/2027

1,000,000.00 09/20/2022

4.46% 986,310.00 996,680.98

99.87 4.25%

998,749.00 12,219.44

0.38% 2,068.02

A1/A A+

1.21 1.15

756109AU8

REALTY INCOME CORP 3.65

01/15/2028

790,000.00 04/10/2023

4.87% 749,299.20 776,823.15

98.78 4.48%

780,347.78 13,296.14

0.30% 3,524.63

A3/A-

NA

1.54 1.45

24422EWR6

JOHN DEERE CAPITAL CORP 4.75

01/20/2028

1,550,000.00 01/23/2023

4.40% 1,573,854.50 1,557,440.61

100.71 4.27%

1,560,963.15 32,926.74

0.59% 3,522.54

A1/A A+

1.56 1.45

91324PEP3

UNITEDHEALTH GROUP INC 5.25

02/15/2028

1,000,000.00 02/21/2023

4.90% 1,015,260.00 1,004,807.71

101.34 4.38%

1,013,358.00 19,833.33

0.39% 8,550.29

A2/A+ A

1.63 1.44

58933YBH7 MERCK & CO INC 4.05 05/17/2028 1,500,000.00

05/15/2023

4.05% 1,500,060.00 1,500,021.90

99.71 4.21%

1,495,632.00 7,425.00

0.57% (4,389.90)

Aa3/A+

NA

1.88 1.78

02665WEM9

AMERICAN HONDA FINANCE

CORP 5.125 07/07/2028

550,000.00 10/12/2023

5.60% 539,276.75 545,421.18

100.88 4.66%

554,842.20 13,623.96

0.21% 9,421.02

A3/BBB+

A-

2.02 1.85

756109BS2

REALTY INCOME CORP 4.7

12/15/2028

1,000,000.00 01/19/2024

4.83% 994,260.00 997,117.16

100.25 4.59%

1,002,505.00 2,088.89

0.38% 5,387.84

A3/A-

NA

2.46 2.22

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

89236TLL7

TOYOTA MOTOR CREDIT CORP

4.65 01/05/2029

1,000,000.00 02/09/2024

4.80% 993,570.00 996,695.10

100.48 4.45%

1,004,775.00 22,733.33

0.38% 8,079.90

A1/A+ A+

2.52 2.30

91324PEU2

UNITEDHEALTH GROUP INC 4.25

01/15/2029

1,250,000.00 01/23/2024

4.61% 1,230,025.00 1,239,787.14

99.50 4.46%

1,243,713.75 24,496.53

0.47% 3,926.61

A2/A+ A

2.54 2.33

91159HJK7 US BANCORP 4.653 02/01/2029 1,000,000.00

04/11/2024

5.66% 965,960.00 985,765.54

100.07 4.71%

1,000,700.00 19,387.50

0.38% 14,934.46

A3/A A+

2.59 1.48

17275RBR2

CISCO SYSTEMS INC 4.85

02/26/2029

1,295,000.00 02/21/2024

4.86% 1,294,546.75 1,294,759.11

101.06 4.42%

1,308,751.61 21,808.16

0.50% 13,992.49

A1/AA-

NA

2.66 2.36

14913UAJ9

CATERPILLAR FINANCIAL SERVICES

CORP 4.85 02/27/2029

1,000,000.00 08/26/2024

4.19% 1,026,850.00 1,015,865.17

101.21 4.36%

1,012,140.00 16,705.56

0.38% (3,725.17)

A1/A A+

2.66 2.43

00287YDS5 ABBVIE INC 4.8 03/15/2029 1,250,000.00

07/22/2024

4.68% 1,256,037.50 1,253,474.82

100.78 4.49%

1,259,692.50 17,666.67

0.48% 6,217.68

A2/A-

NA

2.71 2.41

79466LAR5 SALESFORCE INC 4.65 03/15/2029 580,000.00

03/19/2026

4.65% 580,040.60 580,036.67

99.95 4.67%

579,699.56 8,091.00

0.22% (337.11)

A2/A+

NA

2.71 2.48

61747YFD2

MORGAN STANLEY 5.164

04/20/2029

2,250,000.00 05/30/2024

5.44% 2,228,212.50 2,239,888.76

100…