HomeMy WebLinkAboutStaff Report 2512-5702CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, August 17, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
C.Investment Activity Report for the Fourth Quarter (April – June), Fiscal Year 2026.
CEQA Status – Not a Project.
City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: August 17, 2026
Report #:2512-5702
TITLE
Investment Activity Report for the Fourth Quarter (April – June), Fiscal Year 2026.
CEQA Status – Not a Project.
RECOMMENDATION
This is an informational report and no City Council action is required.
EXECUTIVE SUMMARY
This report is presented in accordance with California Government Code Section 53646 and the
City’s Investment Policy.
As of June 30, 2026, the consolidated portfolio totaled $671.2 million (market value), including
$528.5 million in investments and $142.6 million in liquid accounts. The investment portfolio
was in full compliance with the City’s Investment Policy, and staff projects adequate liquidity to
meet expenditure requirements for the next six months.
Attachments and links in this report provide detailed cash and investment information,
including portfolio holdings, performance metrics, and related financial summaries.
BACKGROUND
The City’s Investment Policy is reviewed and approved annually by Council and establishes the
framework for managing public funds in accordance with the Prudent Investor Standard under
state law. The policy outlines authorized investment types, maturity and credit quality limits,
diversification requirements, and reporting standards to ensure the objectives of safety,
liquidity, and return.
The policy also requires the Administrative Services Department to provide the City Council
with monthly and quarterly investment reports, consistent with California Government Code
53646. Monthly reports provide details on investment activity during the period, such as
purchases, calls, redemptions, and maturities. This quarterly report summarizes the City’s
investment holdings, portfolio performance, and compliance with the City’s Investment Policy
and California Government Code.
ANALYSIS
Graph 1 below illustrates the City’s portfolio by security type, reflecting how funds are
allocated across permitted investment categories
Table 1 summarizes the portfolio’s maturity structure, which supports the City’s
liquidity objectives and duration strategy.
U.S. Treasury
U.S. Agency Bonds
U.S. Municipal/ State
Bonds
Certificates of Deposits
(CD)
U.S. Corporate Bonds
Supranational
Organizations Bonds
Money Market Fund
Asset-Backed
Securities (ABS/MBS)
Liquid Accounts
21.2%
Investment by Type - $671.2 Million (Market Value)
Investment Performance and Activity
For the quarter ended June 30, 2026, the City’s portfolio average market yield was 4.32%
compared to 4.16% for the ICE BofA 1-5 Year U.S. Treasury & Agency Index benchmark. The
portfolio's total return for the quarter was 0.41%, exceeding the benchmark return of 0.24%.
During the quarter, approximately $43.5 million in securities were purchased, $3.5 million were
called or redeemed, and $34.0 million matured.
Table 2 summarizes key portfolio characteristics including maturity, duration, yield, and
credit quality. As of June 30th, the yield for LAIF and the two-year US Treasury were 3.82%
and 4.15%, respectively. While these are not direct performance benchmarks, they provide
useful context for evaluating the portfolio’s positioning relative to short-term liquidity returns
and broader market conditions.
Table 2: Portfolio Characteristics
Benchmark*
Portfolio as of
June 30
Portfolio as of
March 31
Average Maturity (yrs) 2.64 2.95 2.99
Average Modified Duration 2.46 2.54 2.63
Average Purchase Yield 3.17% 3.04%
Average Market Yield 4.16% 4.32% 4.06%
Average Credit Quality** AA+ AA+ AA+
*Benchmark: ICE BofA 1-5 Unsubordinated US Treasury & Agency Index
**The credit quality is a weighted average calculation of the highest S&P, Moody’s and Finch
Compliance and Credit Standards
The City’s Investment Policy defines general portfolio limits and controls, including a maximum
stated maturity of 10 years, no more than 30% of the market value of the total portfolio in
maturities beyond five years, and maintaining a market value above 95% of book value. All
FY 2026 Q4 Maturities - Market Value (millions)
Up to 1
Year
1 to 2
Years
2 to 3
Years
3 to 5
Years
Over
5 Years
Portfolio
Total *
% of
Portfolio
Par
Value
U.S. Treasury 24.0$ -$ 30.0$ 14.9$ 9.7$ 78.7$ 11.7% 79.0$
U.S. Agency Bonds 15.9 14.2 4.5 8.2 67.4 110.3 16.4% 119.9
U.S. Municipal/ State Bonds 47.4 45.9 30.6 21.6 45.5 191.0 28.5% 196.8
Certificates of Deposits (CD) 5.5 0.5 5.2 1.4 3.4 15.9 2.4% 16.2
U.S. Corporate Bonds 9.1 - 8.4 4.2 38.5 60.2 9.0% 60.7
Supranational Organizations Bonds 5.9 - 6.0 8.6 19.1 39.7 5.9% 39.4
Money Market Fund 2.3 - - - - 2.3 0.3% 2.3
Asset-Backed Securities (ABS/MBS) - - - 14.3 16.2 30.4 4.5% 30.5
Liquid Accounts 142.6 - - - - 142.6 21.2% 142.6
(US Bank, Wells Fargo, Fidelity, LAIF)
Grand Total 252.7$ 60.6$ 84.7$ 73.3$ 199.8$ 671.2$ 100% 687.4$
% of Portfolio 37.6% 9.0% 12.6% 10.9% 29.8% 100.0%
Investment Type
marketable securities are held by a third-party custodian, and valuations are independently
verified.
Economic Outlook
Inflation remained above the Federal Reserve’s target during the quarter, although underlying
inflation showed signs of stabilizing. Higher energy prices associated with Middle East tensions
contributed to elevated headline inflation earlier in the quarter. However, oil prices declined by
quarter-end as concerns over supply disruptions eased.
Cash Flow Outlook
Cash flow needs fluctuate over the course of the fiscal year as a result of cyclical revenue
patterns, with larger inflows from major revenue sources such as property tax
receipts occurring in the second half of the year. One-time activities, such as the annual
prepayment of pension obligations and large capital expenditures, also influence these
patterns. The City’s investment strategy aligns with these cycles by timing maturities
and maintaining sufficient liquidity to meet ongoing needs as they occur.
Funds Held by Fiscal Agents and Trustees
The City holds bond proceeds, reserves, and debt service funds with fiscal agents, which are
invested in accordance with the respective bond indentures. The City also maintains a Section
115 Pension Trust with Public Agency Retirement Services (PARS) and Retiree Medical Funds
(Other Post-Employment Benefits Trust or OPEB), governed by the City’s Retiree Benefit
Funding Policy.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
Book Value Market Value
City Investment Portfolio 540,468,988$ 528,545,305$
Other Liquid Accounts
Cash with Wells Fargo Bank 2,836,723 2,836,723
Cash with US Bank & Receivables 57,564,793 57,564,793
Fidelity Money Market Funds 39,210,090 39,210,090
Local Agency Investment Fund (LAIF) 42,998,482 42,998,482
Total - Other Liquid Accounts 142,610,088 142,610,088
CONSOLIDATED PORTFOLIO TOTAL (Attachment B)683,079,076 671,155,393
Other Debt Service Funds*
Debt Service Proceeds
US Bank Trust Services **
2009 Water Revenue Bonds (Build America Bonds)
Debt Service and Reserve Funds 2,125,189 2,125,189
2011 Utility Revenue Refunding Bonds
Debt Service and Reserve Funds 593,117 593,117
2018 Capital Improvement (Golf Course & 2002B COP Refinance)
(Taxable- Green Bond) Certificates of Participation
Debt Service Funds 940 940
2019 California Avenue Parking Garage Certificates of Participation
(Tax-Exempt and Taxable Bonds)
Debt Service and Reserve Funds 4,167 4,167
2021 Public Safety Building Certificates of Participation
Debt Service Funds 6,881 6,881
2022A & B General Obligation (Library) Bond
Cost of Issuance Funds 4,344 4,344
California Asset Management Program (CAMP) ***
2012 University Ave. Parking Refunding Bonds
Reserve Fund 3,244,271 3,244,271
Public Agencies Post-Employment Benefits Trust ****
Public Agency Retirement Services (PARS) 131,022,499 131,022,499
Total Other Funds 137,001,408 137,001,408
GRAND TOTAL 820,080,484$ 808,156,801$
* These funds are subject to the requirements of the underlying debt indenture.
** U.S. Bank investments are in money market mutual funds that exclusively invest in U.S. Treasury securities.
*** CAMP investments are in money market mutual fund which invest in bankers acceptance, certificate of deposit,
commercial paper, federal agency securities, and repurchase agreements.
**** PARS investments are in moderately conservative index plus funds
Attachment A
Fourth Quarter, Fiscal Year 2025-26
(Unaudited)
Consolidated Report of Cash Management
City of Palo Alto Cash and Investments
ATTACHMENT B
INVESTMENT REPORT
City of Palo Alto| 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.1
ATTACHMENT BTABLE OF CONTENTS
ACCOUNT PROFILE
CONSOLIDATED INFORMATION
2
ATTACHMENT B
ECONOMIC UPDATE
3
ATTACHMENT B
ECONOMIC UPDATE
Energy prices and inflation remained the primary drivers of the macro backdrop as the U.S.-Israel-Iran conflict entered its third month,
The Federal Reserve’s June FOMC meeting ended with policymakers unanimously holding the target range at 3.50%–3.75%, a notable shift
The Treasury yield curve flattened modestly in June as short-term yields responded to a more hawkish shift in Federal Reserve guidance.
4
ATTACHMENT B
EMPLOYMENT
Nonfarm Payroll (000's)Unemployment Rate
1,000 12.0%
8.0%
6.0%
0.0%
Non-farm Payroll (000's)Underemployment Rate (U6)
-200
Source: US Department of Labor Source: US Department of Labor
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
5
ATTACHMENT B
JOB OPENINGS & LABOR TURNOVER SURVEY
Job Openings
14,000
Recession
Historical Average
Source: US Department of Labor
Job openings were essentially unchanged at 7.6 million in May, remaining elevated by historical standards even as hiring momentum
6
ATTACHMENT B
ENERGY MARKETS
Oil Prices US Fuel Prices
160 6.50West Texas Intermediate (WTI Spot Cushing)Average Retail Price US Diesel
60
40
Source: Bloomberg Indices Source: Bloomberg Indices
Crude oil prices declined sharply in June as supply disruptions tied to the Middle East conflict began to ease. Tanker traffic through the
7
ATTACHMENT B
INFLATION
Consumer Price Index (CPI)Personal Consumption Expenditures (PCE)
10.0%8.0%CPI Y OY % Change PCE Price Deflator YOY %
Fed Target
Source: US Department of Labor Source: US Department of Commerce
Inflation firmed in May, with the Personal Consumption Expenditures (PCE) price index rising 0.4% on the month and 4.1% year over year,
8
ATTACHMENT B
CONSUMER
Retail Sales YOY % Change Consumer Confidence
30.0%160
Recession
60
40
20
0.0%0
Source: US Department of Commerce Source: The Conference Board
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
9
ATTACHMENT B
LEADING INDICATORS OF ECONOMIC ACTIVITY
Leading Economic Indicators (LEI)Chicago Fed National Activity Index (CFNAI)
1.00
0.75
0.50
0.25
0.00
-0.25
-0.50
-0.75
-1.00
15.0%
10.0%
0.0%
-5.0%
-10.0%
-15.0%Recession
-20.0%Recession
Source: The Conference Board Source: Federal Reserve Bank of Chicago
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
10
ATTACHMENT B
HOUSING
Annualized Housing Starts S&P/Case-Shiller 20 City Composite Home Price Index
2,400 24.0%Multi Family Housing Starts
4.0%
-4.0%
-8.0%
-12.0%
-16.0%
-20.0%
Recession
Source: US Department of Commerce Source: S&P
Housing starts declined sharply in May to a seasonally adjusted annual rate of 1,177,000, a 15.4% drop from a downwardly revised
11
ATTACHMENT B
PURCHASING MANAGERS INDEX (PMI)
Institute of Supply Management (ISM) Surveys
70
ISM Manufacturing ISM Services
55
EXPANDING50CONTRACTING
Source: Institute for Supply Management
Manufacturing activity cooled slightly in June, with the Institute for Supply Management's Manufacturing Index easing to 53.3%, down 0.7
12
ATTACHMENT B
GROSS DOMESTIC PRODUCT (GDP)
Gross Domestic Product (GDP)
14.0%
Components of GDP 6/25
1.7%
-2.7%
4.8%
-0.4%
0.3%
3.8%
9/25
2.3%
0.0%
1.6%
0.2%
0.2%
12/25
1.3%
0.4%
-0.2%
-1.2%
0.2%
3/26
0.4%
1.4%
-0.4%
0.6%
0.2%
2.1%
GDP QOQ % Change
Personal Consumption Expenditures
Federal Government Expenditures
State and Local (Consumption and Gross
Total
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
13
ATTACHMENT B
FEDERAL RESERVE
Federal Reserve Balance Sheet Assets Effective Federal Funds Rate
10,000,000 6.00%
RecessionRecession
Source: Federal Reserve Source: Bloomberg
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,
14
ATTACHMENT B
BOND YIELDS
US Treasury Yield CurveUS Treasury Note Yields
5.5%6.0%
2-Year Jun-26
Source: Bloomberg Source: Bloomberg
Treasury yields ended June mixed, with a modest flattening across the curve as markets digested a more hawkish Federal Reserve signal.
15
ATTACHMENT B
ACCOUNT PROFILE
16
ATTACHMENT B
OBJECTIVES
Investment Objectives
Safety of principal is the foremost objective of the investment program. The investment portfolio shall remain sufficiently
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market
Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed income securities that comply with the
17
ATTACHMENT BSTATEMENT OF COMPLIANCE
City of Palo Alto Consolidated | Account #11465 | As of June 30, 2026
ComplianceRules Name Limit Actual Notes
AGENCY MORTGAGE SECURITIES
Max % Issuer (MV)30.0 0.7 Compliant
Max Maturity (Years)
ASSET-BACKED SECURITIES (ABS)
20.0 3.8 Compliant
Max Maturity (Years)
BANKERS' ACCEPTANCES
40.0 0.0 Compliant
Max % Issuer (MV)
Max Maturity (Days)180.0
COLLATERALIZED BANK DEPOSITS
Max % (MV)100.0 0.0 Compliant
COLLATERALIZED TIME DEPOSITS (NON-
Max % (MV; FDIC & Collateralized CD/TD)20.0 0.0 Compliant
Min Rating (A-1 by 1; A- by 1 if > FDIC Limit)
COMMERCIAL PAPER
40.0 0.0 Compliant
Max % Issuer (MV)
Max Maturity (Days)397.0
Min Rating (A-1 by 1 or A- by 1)
CORPORATE MEDIUM TERM NOTES
30.0 9.0 Compliant
Max % Issuer (MV)
Max Maturity (Years)
Min Rating (A- by 1)
18
ATTACHMENT BSTATEMENT OF COMPLIANCE
City of Palo Alto Consolidated | Account #11465 | As of June 30, 2026
ComplianceRules Name Limit Actual Notes
FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
Max % (MV; FDIC & Collateralized CD/TD)20.0 0.0 Compliant
Min Rating (A-1 by 1; A- by 1)
FEDERAL AGENCIES
Max % (MV)100.0 16.4 Compliant
Max % Issuer (MV)
Max Callables (MV)12.1
Max Maturity (Years)
GENERAL INVESTMENT GUIDELINES
Max % 5-10 Years Maturities (MV)
Max Maturity (Years)
30.0 9.0 Compliant
LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV)
Max % (MV)
75.0 43.0 Compliant
MONEY MARKET MUTUAL FUNDS
Max % (MV)20.0 0.3 Compliant
Max % Issuer (MV)
Min Rating (AAA by 2)
MORTGAGE-BACKED SECURITIES (NON-AGENCY)
Max % (MV; ABS & MBS)
Max % Issuer (MV)
20.0 3.8 Compliant
Max Maturity (Years)
Min Rating (AA- by 1)
MUNICIPAL SECURITIES
Max % (MV)30.0 0.0 Compliant
Max % Issuer (MV)
Max Maturity (Years)10.0
19
ATTACHMENT BSTATEMENT OF COMPLIANCE
City of Palo Alto Consolidated | Account #11465 | As of June 30, 2026
ComplianceRules Name Limit Actual Notes
Min Rating (A- by 1)0.0 0.0 Compliant
NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV)30.0 0.3 Compliant
Max % Issuer (MV)
Max Maturity (Years)
Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit)
REPURCHASE AGREEMENTS
0.0
1.0 0.0 Compliant
SRI PROHIBITED INVESTMENTS
Prohibited Investment - Fossil Fuels
Prohibited Investments - Firearms
Prohibited Investments - Tobacco
Max % (MV)
0.0 0.0 Compliant
30.0 5.9 Compliant
Max % Issuer (MV)
Max Maturity (Years)
Min Rating (AA- by 1)0.0
U.S. TREASURIES
Max % (MV)100.0 11.7 Compliant
Max Maturity (Years)
20
ATTACHMENT BPORTFOLIO CHARACTERISTICS
Palo Alto Managed Acct | Account #11463 | As of June 30, 2026
6/30/2026 3/31/2026Benchmark*
Average Maturity (yrs)2.64 2.95 2.99
3.17%3.04%
4.16%4.32%4.06%
AA+AA+
Total Market Value 528,545,305 526,367,008
*Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index
21
ATTACHMENT BSECTOR DISTRIBUTION
Palo Alto Managed Acct | Account #11463 | As of June 30, 2026
Sector as a Percentage of Market Value
Sector 06/30/2026 03/31/2026
Muni Bonds 36.07%39.41%
US Treasury
ABS
CD
Agency CMBS
22
ATTACHMENT BQUALITY DISTRIBUTION
Palo Alto Managed Acct | Account #11463 | As of June 30, 2026
S&P Rating Moody’s Rating Fitch Rating
Rating 06/30/2026 03/31/2026 Rating 06/30/2026 03/31/2026 Rating 06/30/2026 03/31/2026
AAA 20.04%19.12%Aaa 20.77%20.84%AAA 12.04%10.04%
A
BBB P-1 2.35%1.89%BBB 0.05%
18.45%11.45%2.35%
45.62%
1.89%
40.91%
23
ATTACHMENT BDURATION DISTRIBUTION
Palo Alto Managed Acct | Account #11463 | As of June 30, 2026
Portfolio Compared to the Benchmark
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 11.8%3.0%8.6%20.4%15.6%17.5%14.9%7.6%0.5%
ICE BofA 1-5 Year Unsubordinated US Treasury &0.0%0.0%2.5%36.2%28.4%20.6%12.3%0.0%0.0%
24
ATTACHMENT BINVESTMENT PERFORMANCE
Palo Alto Managed Acct | Account #11463 | As of June 30, 2026
Total Rate of Return: Inception | 09/01/2025
TOTAL RATE OF RETURN*3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception
Palo Alto Managed Acct 0.41%
0.24%
*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.25
Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index
ATTACHMENT BPORTFOLIO CHARACTERISTICS
City of Palo Alto Reporting | Account #11464 | As of June 30, 2026
6/30/2026 3/31/2026
Average Maturity (yrs)0.00 0.00
2.33%1.95%
2.33%1.95%
AAA AAA
Total Market Value 142,610,088 145,024,434
*Benchmark: NO BENCHMARK REQUIRED
26
ATTACHMENT BSECTOR DISTRIBUTION
City of Palo Alto Reporting | Account #11464 | As of June 30, 2026
Sector as a Percentage of Market Value
Sector 06/30/2026 03/31/2026
Cash 69.85%63.78%
27
ATTACHMENT B
CONSOLIDATED INFORMATION
28
ATTACHMENT BPORTFOLIO CHARACTERISTICS
City of Palo Alto Consolidated | Account #11465 | As of June 30, 2026
6/30/2026 3/31/2026
Average Maturity (yrs)2.32 2.34
2.99%2.81%
3.90%3.60%
AA+AA+
Total Market Value 671,155,393 671,391,442
*Benchmark: NO BENCHMARK REQUIRED
29
ATTACHMENT BSECTOR DISTRIBUTION
City of Palo Alto Consolidated | Account #11465 | As of June 30, 2026
Sector as a Percentage of Market Value
Sector 06/30/2026 03/31/2026
Muni Bonds 28.36%30.85%
Cash
US Treasury
Supras
ABS
CD
Agency CMBS
30
ATTACHMENT BISSUERS
City of Palo Alto Consolidated | Account #11465 | As of June 30, 2026
Issuer Investment Type % Portfolio
11.72%
8.55%
6.45%
5.88%
5.47%
5.00%
3.71%
2.92%
2.61%
1.70%
1.09%
0.99%
0.87%
0.86%
0.83%
0.77%
0.76%
0.76%
0.76%
0.73%
0.71%
0.70%
0.70%
0.66%
0.64%
0.62%
0.62%
0.58%
0.58%
0.56%
United States US Treasury
US Bank
LAIF LAIF
Fidelity Cash
Federal Home Loan Banks Agency
Agency
Supras
Agency
Federal Home Loan Mortgage Corp Agency
Supras
Muni Bonds
City of Oakland, California
Commonwealth of Massachusetts
Stanford University
Federal Home Loan Mortgage Corp
Hyundai Auto Lease Sec Trust
Muni Bonds
Honda Auto Receivables Owner Trust
Corporate
31
ATTACHMENT BISSUERS
City of Palo Alto Consolidated | Account #11465 | As of June 30, 2026
Issuer Investment Type % Portfolio
0.56%
0.56%
0.56%
0.55%
0.50%
0.50%
0.47%
0.46%
0.46%
0.45%
0.44%
0.44%
0.44%
0.43%
0.43%
0.42%
0.41%
0.40%
0.40%
0.38%
0.38%
0.38%
0.38%
0.37%
0.37%
0.37%
0.37%
0.37%
0.37%
0.37%
Andrew W. Mellon Foundation, The Corporate
Muni Bonds
Corporate
Muni Bonds
Muni Bonds
Wells Fargo & Company
City of Manhattan Beach, California Muni Bonds
San Diego Community College District
State of New York
U.S. Bancorp
Morgan Stanley
Deere & Company
Qualcomm Incorporated
Eli Lilly and Company
Meta Platforms, Inc.
New York Life Insurance Company
32
ATTACHMENT BISSUERS
City of Palo Alto Consolidated | Account #11465 | As of June 30, 2026
Issuer Investment Type % Portfolio
0.37%
0.36%
0.35%
0.34%
0.34%
0.33%
0.32%
0.31%
0.30%
0.30%
0.30%
0.29%
0.29%
0.29%
0.29%
0.28%
0.28%
0.27%
0.26%
0.26%
0.25%
0.24%
0.22%
0.22%
0.21%
0.21%
0.20%
0.20%
0.20%
0.20%
Simon Property Group, Inc.Corporate
Santa Clara VY California Water Dist
Riverside Community College District
Cabrillo California Cmmnty College
Corporate
T-Mobile Us Trust 2026-1
City of Santa Ana, California Muni Bonds
John Deere Owner Trust
GM Financial Auto Leasing Trust ABS
Muni Bonds
Antelope Valley Cmnty College Dist
Fullerton School District, Californi
33
ATTACHMENT BISSUERS
City of Palo Alto Consolidated | Account #11465 | As of June 30, 2026
Issuer Investment Type % Portfolio
0.20%
0.20%
0.20%
0.19%
0.19%
0.19%
0.19%
0.19%
0.18%
0.18%
0.17%
0.17%
0.16%
0.16%
0.16%
0.15%
0.15%
0.15%
0.15%
0.15%
0.15%
0.15%
0.14%
0.14%
0.14%
0.14%
0.13%
0.13%
0.13%
0.12%
City of Chula Vista, California Muni Bonds
Tustin Unified School District Schoo
Sequoia Union High School District
Mountain View Whisman School Distric Muni Bonds
Burbank California City Unified SD
Sierra Joint Community College Distr
Beverly Hills Unified School Dist
San Francisco Bay Area Rapid Transit
34
ATTACHMENT BISSUERS
City of Palo Alto Consolidated | Account #11465 | As of June 30, 2026
Issuer Investment Type % Portfolio
0.11%
0.11%
0.10%
0.10%
0.09%
0.09%
0.09%
0.09%
0.09%
0.09%
0.09%
0.08%
0.08%
0.08%
0.08%
0.08%
0.07%
0.07%
0.07%
0.07%
0.07%
0.07%
0.07%
0.07%
0.07%
0.06%
0.06%
0.05%
0.05%
0.05%
California Dep of Water Resources Muni Bonds
Rancho Santiago Community College Di
Milpitas Unified School District
San Juan Unified School District Muni Bonds
State of Ohio
Liberty Union High School District
City of San Ramon, California
35
ATTACHMENT BISSUERS
City of Palo Alto Consolidated | Account #11465 | As of June 30, 2026
Issuer Investment Type % Portfolio
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
Chaffey Community College District Muni Bonds
Muni Bonds
Muni Bonds
Alliant Credit Union CD
Global Federal Credit Union CD
Neg CD
Austin Telco Federal Credit Union CD
CD
The Bippus State Bank CD
CNB Bank, Inc.CD
Baxter Credit Union CD
UBS Bank USA, National Association Neg CD
CD
Neg CD
Signature Federal Credit Union
CD
CD
CD
The Pitney Bowes Bank Inc.CD
CD
CD
Neg CD
Healthcare Systems Fed Credit Union
CD
CD
Mutual Savings Association CD
CD
36
ATTACHMENT BISSUERS
City of Palo Alto Consolidated | Account #11465 | As of June 30, 2026
Issuer Investment Type % Portfolio
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
0.04%
Amazon.com, Inc.CD
Eaglemark Savings Bank CD
Neg CD
Toyota Financial Savings Bank Neg CD
CD
CD
CD
Synchrony Bank CD
Pentagon Federal Credit Union CD
CD
CD
Muni Bonds
Neg CD
CD
Connexus Credit Union CD
CD
CD
CD
First National Bank of America CD
CD
CD
Cinfed Federal Credit Union CD
CD
Kennett Trust Bank CD
Live Oak Banking Company CD
Muni Bonds
Jonesboro State Bank CD
CD
37
ATTACHMENT BISSUERS
City of Palo Alto Consolidated | Account #11465 | As of June 30, 2026
Issuer Investment Type % Portfolio
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.02%
0.02%
0.01%
Bank of Montreal Neg CD
Minnwest Bank CD
Legacy Bank & Trust Company CD
CD
CD
CD
Country Club Bank CD
Berkeley California Unified SD Muni Bonds
Pony Express Bank CD
USF Federal Credit Union CD
Muni Bonds
Sonoma County California Junior Coll
TOTAL 100.00%
38
ATTACHMENT BIMPORTANT DISCLOSURES
2026 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
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
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or
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
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
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
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
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
LGIP Yields: Reported yields for local government investment pools may be presented as either the 30-day yield or the monthly distribution yield, as applicable. For certain funds,
LAIF Yields: Additional Disclosure for CA Clients - As a result of a reporting lag from the Local Agency Investment Fund (LAIF), reported LAIF yields represent the most recently
39
ATTACHMENT BBENCHMARK DISCLOSURES
Benchmark Disclosure
The ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and
ICE BofA 1-5 Yr Unsubordinated US
40