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HomeMy WebLinkAbout011326-07.1INVESTMENT REPORT Danville | 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. TABLE OF CONTENTS ECONOMIC UPDATE ACCOUNT PROFILE PORTFOLIO HOLDINGS TRANSACTIONS 1 ECONOMIC UPDATE 2 ▪ ▪ ▪ 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 -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) 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% Unemployment Rate Underemployment Rate (U6) Unemployment Rate (U3) Ra t e ( % ) The delayed Nonfarm Payrolls reports for October and November were released together on December 16.October’s data revealed unexpected weakness, with payrolls declining by 105,000 jobs, largely due to the removal of thousands of federal employees who had accepted deferred resignation offers under the Trump administration. In November, payrolls partially recovered with a gain of 64,000 jobs. Notably, the unemployment rate rose to 4.6% in November, up from 4.4% in the most recent data available from September. Source: US Department of Labor Source: US Department of Labor EMPLOYMENT 4 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) showed an increase to 7.670 million new job openings in October, a slight pick-up from the 7.658 million in September. The rise marked the highest level of available jobs in five months. However, in October hiring declined by 218,000 while layoffs rose to 1.85 million signaling further softening in the labor market. Job openings indicate a ratio of approximately 1 job for each unemployed individual, representing a relatively balanced labor market. Source: US Department of Labor JOB OPENINGS & LABOR TURNOVER SURVEY 5 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% 9.0% 10.0% Personal Consumption Expenditures (PCE) PCE Price Deflator YOY % Change PCE Core Deflator YOY % Change Fed 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 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 remained 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 -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 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 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. Existing home sales edged higher in November to a pace of 4.13 million units, reflecting only modest momentum despite recent rate relief. The Freddie Mac 30-year fixed mortgage rate averaged 6.23% at November month end. Source: US Department of Commerce Source: S&P -20.0% -16.0% -12.0% -8.0% -4.0% 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% S&P/Case-Shiller 20 City Composite Home Price Index Recession YO Y ( % ) C h a n g e HOUSING 9 40 45 50 55 60 65 70 Institute of Supply Management (ISM) Surveys ISM Manufacturing ISM Services EXPANDING CONTRACTING The Institute for Supply Management’s (ISM) manufacturing index registered 48.2 percent in November, down 0.5 from 48.7 in October. Manufacturing activity has remained in contraction for 35 of the past 37 months, as readings below 50 signal contraction and those above 50 indicate expansion. The sector continues to be weighed down by trade policy uncertainty and elevated production costs, with factory orders declining at the fastest pace since July.In contrast, the ISM services index sustained its expansionary momentum, rising to 52.6 in November from 52.4 in October. Growth in Business Activity and New Orders supported the gain, though respondents cited tariffs and the recent government shutdown as persistent headwinds. Source: Institute for Supply Management SURVEY BASED MEASURES 10 Components of GDP 12/24 3/25 6/25 9/25 2.6% 0.4% 1.7% 2.4% -1.3% 3.8% -2.7% 0.0% -0.1% -4.7% 4.8% 1.6% 0.3% -0.4% -0.4% 0.2% 0.3% 0.2% 0.3% 0.2% 1.9% -0.6% 3.8% 4.3% Personal Consumption Expenditures Gross Private Domestic Investment Net Exports and Imports Federal Government Expenditures Total State and Local (Consumption and Gross Investment) -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Source: US Department of Commerce Source: US Department of Commerce The U.S. inflation 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 to 3.5% from 2.5%, while exports contributed 1.59 percentage points to growth—both key drivers of the quarter’s performance. The stronger-than-expected result represented the fastest pace of U.S. economic expansion in two years. GROSS DOMESTIC PRODUCT (GDP) 11 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% Effective Federal Funds Rate Recession Yi e l d ( % ) 12 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 Y i 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 ACCOUNT PROFILE 14 OBJECTIVES Investment Objectives The primary investment objectives of the Town of Danville are to preserve principal and to maintain adequate liquidity to meet the Town's cash flow requirements. The Town expects to achieve a rate of return which is consistent with its primary objectives. Chandler Asset Management Performance Objective The performance objective is to achieve a return that equals the return on an unmanaged index of one-to-three year Treasury securities (a "market rate of return"). Strategy In order to meet its objectives, the Town invests in securities permitted under California Government Code Section 53600 et seq. and under its Investment Policy. The maximum maturity of the Town's investments is five years, unless specifically authorized by the Town Council. 15 STATEMENT OF COMPLIANCE Danville Short Term Treasury Pool | Account #21 | As of December 31, 2025 Rules Name Limit Actual Compliance Status Notes AGENCY MORTGAGE SECURITIES Max % (MV; ABS, CMO, & MBS)15.0 13.4 Compliant Max % Issuer (MV)30.0 8.6 Compliant Max Maturity (Years)5.0 3.2 Compliant Min Rating (AAA by 1)0.0 0.0 Compliant ASSET-BACKED SECURITIES (ABS) Max % (MV; ABS, CMO & MBS)15.0 13.4 Compliant Max % Issuer (MV)5.0 1.0 Compliant Max Maturity (Years)5 3 Compliant Min Rating (AAA 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 BANK DEPOSITS Max % (MV)100.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant COLLATERALIZED TIME DEPOSITS (NON- NEGOTIABLE CD/TD) Max % (MV)100.0 0.0 Compliant Max % Issuer (MV)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)20.0 16.4 Compliant Max % Issuer (MV)5.0 1.4 Compliant 16 STATEMENT OF COMPLIANCE Danville Short Term Treasury Pool | Account #21 | As of December 31, 2025 Rules Name Limit Actual Compliance Status Notes Max Maturity (Years)5 3 Compliant Min Rating (A- by 1)0.0 0.0 Compliant FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE CD/TD) Max % (MV)100.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant FEDERAL AGENCIES Max % (MV)100.0 18.2 Compliant Max % Issuer (MV)30.0 9.7 Compliant Max Callables (MV)20.0 0.0 Compliant Max Maturity (Years)5 3 Compliant LOCAL AGENCY INVESTMENT FUND (LAIF) Max % (MV)30.0 0.0 Compliant MONEY MARKET MUTUAL FUNDS Max % (MV)20.0 1.8 Compliant Max % Issuer (MV)20.0 1.8 Compliant Min Rating (AAA by 2)0.0 0.0 Compliant MORTGAGE-BACKED SECURITIES (NON-AGENCY) Max % (MV)15.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5.0 0.0 Compliant Min Rating (AAA by 1)0.0 0.0 Compliant MUNICIPAL SECURITIES (CA, LOCAL AGENCY) 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 MUNICIPAL SECURITIES (CA, OTHER STATES) Max % (MV)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant 17 STATEMENT OF COMPLIANCE Danville Short Term Treasury Pool | Account #21 | As of December 31, 2025 Rules Name Limit Actual Compliance Status Notes Max Maturity (Years)5 0.0 Compliant Min Rating (A- by 1)0.0 0.0 Compliant MUTUAL FUNDS Max % (MV)20.0 0.0 Compliant Max % Issuer (MV)10.0 0.0 Compliant Min Rating (AAA by 2)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)15.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Days)30.0 0.0 Compliant SUPRANATIONAL OBLIGATIONS Max % (MV)30.0 3.4 Compliant Max % Issuer (MV)5.0 1.5 Compliant Max Maturity (Years)5 2 Compliant Min Rating (AA- by 1)0.0 0.0 Compliant U.S. TREASURIES Max % (MV)100.0 46.8 Compliant Max % Issuer (MV)100.0 46.8 Compliant Max Maturity (Years)5 4 Compliant 18 PORTFOLIO CHARACTERISTICS Danville Short Term Treasury Pool | Account #21 | As of December 31, 2025 Benchmark*12/31/2025 Portfolio 9/30/2025 Portfolio Average Maturity (yrs)1.85 2.04 2.06 Average Modified Duration 1.76 1.80 1.82 Average Purchase Yield 4.22%4.22% Average Market Yield 3.50%3.63%3.79% Average Quality**AA+AA+AA+ Total Market Value 102,189,311 101,044,187 *Benchmark: ICE BofA 1-3 Year US Treasury Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 19 SECTOR DISTRIBUTION Danville Short Term Treasury Pool | Account #21 | As of December 31, 2025 Sector as a Percentage of Market Value Sector 12/31/2025 09/30/2025 US Treasury 46.82%45.66% Agency 18.16%18.33% Corporate 16.40%16.48% Agency CMBS 8.65%8.73% ABS 4.78%4.98% Supras 3.39%3.42% Money Mkt Fd 1.81%2.40% 20 ISSUERS Danville Short Term Treasury Pool | Account #21 | As of December 31, 2025 Issuer Investment Type % Portfolio United States US Treasury 46.82% Farm Credit System Agency 9.69% FHLMC Agency CMBS 8.65% Federal Home Loan Banks Agency 8.46% Money Market Fund Money Mkt Fd 1.81% International Bank for Recon and Dev Supras 1.48% PepsiCo, Inc.Corporate 1.35% BNY Mellon Corp Corporate 1.25% Apple Inc.Corporate 1.20% BMW Vehicle Owner Trust ABS 1.12% State Street Corporation Corporate 1.06% PACCAR Inc Corporate 1.05% Caterpillar Inc.Corporate 1.00% Cisco Systems, Inc.Corporate 1.00% Bank of America Corporation Corporate 1.00% Inter-American Development Bank Supras 0.99% Deere & Company Corporate 0.99% Chase Issuance Trust ABS 0.99% Amazon.com, Inc.Corporate 0.98% Honeywell International Inc.Corporate 0.98% Visa Inc.Corporate 0.97% Toyota Motor Corporation Corporate 0.97% International Finance Corporation Supras 0.92% Blackrock, Inc.Corporate 0.69% Merck & Co., Inc.Corporate 0.67% Mercedes-Benz Auto Receivables Trust ABS 0.56% Bank of America Credit Card Trust ABS 0.48% John Deere Owner Trust ABS 0.47% Morgan Stanley Corporate 0.44% JPMorgan Chase & Co.Corporate 0.40% 21 ISSUERS Danville Short Term Treasury Pool | Account #21 | As of December 31, 2025 Issuer Investment Type % Portfolio GM Financial Automobile Leasing Trus ABS 0.40% Alphabet Inc.Corporate 0.39% Honda Auto Receivables Owner Trust ABS 0.31% BMW Vehicle Lease Trust ABS 0.25% Toyota Auto Receivables Owner Trust ABS 0.21% Cash Cash 0.00% TOTAL 100.00% 22 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+ Portfolio 4.3%4.6%16.5%34.0%26.2%14.4%0.0%0.0%0.0% ICE BofA 1-3 Year US Treasury Index 0.0%0.0%3.8%57.4%38.7%0.0%0.0%0.0%0.0% DURATION DISTRIBUTION Danville Short Term Treasury Pool | Account #21 | As of December 31, 2025 Portfolio Compared to the Benchmark 23 QUALITY DISTRIBUTION Rating 12/31/2025 09/30/2025 AAA 10.69%12.49% AA 77.17%75.95% A 10.81%10.21% NA 1.33%1.35% Rating 12/31/2025 09/30/2025 Aaa 10.24%11.91% Aa 79.49%77.63% A 8.35%8.41% NA 1.91%2.05% Rating 12/31/2025 09/30/2025 AAA 10.63%11.43% AA 73.13%72.28% A 3.95%3.99% NA 12.29%12.29% Danville Short Term Treasury Pool | Account #21 | As of December 31, 2025 S&P Rating Moody’s Rating Fitch Rating 24 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception TOTAL RATE OF RETURN Danville ST Treasury Pool 1.14%5.48%4.87%4.80%2.10%2.11%3.44% Benchmark 1.12%5.09%4.58%4.47%1.79%1.84%3.17% REALIZED RATE OF RETURN Danville ST Treasury Pool 1.05%4.10%3.65%3.08%2.42%2.02%3.36% *Periods over 1 year are annualized. Benchmark: ICE BofA 1-3 Year US Treasury Index . 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. INVESTMENT PERFORMANCE Danville Short Term Treasury Pool | Account #21 | As of December 31, 2025 Total and Realized Rate of Return : Inception | 04/01/1995 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 3 months 12 months 2 years 3 years 5 years 10 years Since Inception Danville Short Term Treasury Pool Benchmark Realized Rate of Return 25 HISTORICAL AVERAGE PURCHASE YIELD Danville Short Term Treasury Pool | Account #21 | As of December 31, 2025 Purchase Yield as of 12/31/25 = 4.22% 26 PORTFOLIO CHARACTERISTICS Danville NERIAD Improvement Fund (89-1 90A) | Account #24 | As of December 31, 2025 Benchmark*12/31/2025 Portfolio 9/30/2025 Portfolio Average Maturity (yrs)0.16 0.57 0.59 Average Modified Duration 0.15 0.55 0.58 Average Purchase Yield 3.86%4.06% Average Market Yield 3.63%3.54%3.83% Average Quality**AA+AA+AA+ Total Market Value 1,006,858 996,654 *Benchmark: ICE BofA 3-Month US Treasury Bill Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 27 ISSUERS Danville NERIAD Improvement Fund (89-1 90A) | Account #24 | As of December 31, 2025 Issuer Investment Type % Portfolio United States US Treasury 96.78% Money Market Fund Money Mkt Fd 3.21% Cash Cash 0.02% TOTAL 100.00% 28 PORTFOLIO HOLDINGS 29 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | As of December 31, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration ABS 36271VAD9 GMALT 2025-1 A3 4.66 02/21/2028 405,000.00 02/05/2025 4.66% 404,952.21 404,966.19 100.82 3.88% 408,316.55 576.68 0.40% 3,350.35 NA/AAA AAA 2.14 0.98 05592XAD2 BMWOT 2023-A A3 5.47 02/25/2028 74,275.26 07/11/2023 5.47% 74,262.10 74,269.12 100.60 4.08% 74,723.29 67.71 0.07% 454.17 NA/AAA AAA 2.15 0.42 096912AD2 BMWLT 2025-1 A3 4.43 06/26/2028 250,000.00 06/03/2025 4.82% 249,994.50 249,995.51 100.86 3.79% 252,160.50 184.58 0.25% 2,164.99 NA/AAA AAA 2.49 1.27 89239FAD4 TAOT 2023-D A3 5.54 08/15/2028 210,677.82 11/07/2023 5.61% 210,655.11 210,665.30 101.10 4.10% 212,998.22 518.74 0.21% 2,332.93 NA/AAA AAA 2.62 0.73 161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 995,000.00 09/07/2023 5.23% 994,724.19 994,850.85 100.94 3.83% 1,004,363.95 2,281.87 0.99% 9,513.09 NA/AAA AAA 2.71 0.68 096919AD7 BMWOT 2024-A A3 5.18 02/26/2029 413,957.55 06/04/2024 5.18% 413,894.67 413,915.46 100.91 3.98% 417,735.74 357.38 0.41% 3,820.28 Aaa/AAA NA 3.16 0.73 05522RDJ4 BACCT 2024-1 A 4.93 05/15/2029 475,000.00 06/06/2024 4.93% 474,973.35 474,981.83 101.57 3.78% 482,441.35 1,040.78 0.48% 7,459.52 Aaa/AAA NA 3.37 1.30 47800DAD6 JDOT 2025 A3 4.23 09/17/2029 470,000.00 03/04/2025 5.09% 469,970.44 469,975.74 100.75 3.85% 473,506.20 883.60 0.47% 3,530.46 Aaa/NA AAA 3.71 1.77 096924AD7 BMWOT 2025-A A3 4.56 09/25/2029 635,000.00 02/04/2025 4.56% 634,937.45 634,949.43 101.01 3.82% 641,386.20 482.60 0.63% 6,436.76 Aaa/AAA NA 3.73 1.27 437921AD1 HAROT 252 A3 4.15 10/15/2029 310,000.00 04/29/2025 4.15% 309,965.37 309,970.45 100.61 3.84% 311,896.27 571.78 0.31% 1,925.82 Aaa/NA AAA 3.79 1.77 58773DAD6 MBART 2025-1 A3 4.78 12/17/2029 560,000.00 01/14/2025 4.84% 559,880.89 559,903.73 101.45 3.85% 568,104.88 1,189.69 0.56% 8,201.15 Aaa/NA AAA 3.96 1.47 Total ABS 4,798,910.63 4.93% 4,798,210.28 4,798,443.62 101.02 3.86% 4,847,633.14 8,155.40 4.78% 49,189.53 3.19 1.15 AGENCY 3133EPNG6 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.375 06/23/2026 2,000,000.00 06/22/2023 4.42% 1,997,620.00 1,999,623.29 100.36 3.60% 2,007,192.00 1,944.44 1.98% 7,568.71 Aa1/AA+ AA+ 0.48 0.47 3133EPSW6 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.5 08/14/2026 1,500,000.00 08/09/2023 4.58% 1,496,550.00 1,499,291.74 100.55 3.59% 1,508,227.50 25,687.50 1.49% 8,935.76 Aa1/AA+ AA+ 0.62 0.60 3130AXU63 FEDERAL HOME LOAN BANKS 4.625 11/17/2026 1,000,000.00 11/30/2023 4.53% 1,002,530.00 1,000,748.24 100.85 3.62% 1,008,541.00 5,652.78 0.99% 7,792.76 Aa1/AA+ AA+ 0.88 0.85 30 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | 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 3130B1EF0 FEDERAL HOME LOAN BANKS 4.625 06/11/2027 1,000,000.00 06/26/2024 4.57% 1,001,530.00 1,000,745.86 101.40 3.62% 1,014,031.00 2,569.44 1.00% 13,285.14 Aa1/AA+ AA+ 1.44 1.38 3133EPH81 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.5 10/04/2027 1,500,000.00 12/08/2023 4.41% 1,504,500.00 1,502,070.71 101.67 3.51% 1,525,102.50 16,312.50 1.50% 23,031.79 Aa1/AA+ AA+ 1.76 1.66 3133EPC60 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.625 11/15/2027 1,750,000.00 11/09/2023 4.73% 1,743,507.50 1,746,964.83 101.99 3.51% 1,784,786.50 10,342.01 1.76% 37,821.67 Aa1/AA+ AA+ 1.87 1.77 3130ATUS4 FEDERAL HOME LOAN BANKS 4.25 12/10/2027 1,500,000.00 05/15/2023 3.66% 1,536,930.00 1,515,665.93 101.44 3.47% 1,521,627.00 3,718.75 1.50% 5,961.07 Aa1/AA+ AA+ 1.94 1.85 313382GT4 FEDERAL HOME LOAN BANKS 3.0 03/10/2028 2,000,000.00 05/07/2025 3.80% 1,957,320.00 1,967,115.41 98.95 3.50% 1,978,976.00 18,500.00 1.95% 11,860.59 Aa1/AA+ AA+ 2.19 2.08 3133EPGW9 FEDERAL FARM CREDIT BANKS FUNDING CORP 3.875 04/25/2028 1,500,000.00 04/27/2023 3.76% 1,507,905.00 1,503,668.16 100.80 3.51% 1,512,030.00 10,656.25 1.49% 8,361.84 Aa1/AA+ AA+ 2.32 2.18 3130AWC24 FEDERAL HOME LOAN BANKS 4.0 06/09/2028 1,500,000.00 07/06/2023 4.49% 1,467,705.00 1,483,996.35 101.12 3.52% 1,516,768.50 3,666.67 1.50% 32,772.15 Aa1/AA+ AA+ 2.44 2.30 3130AVBD3 FEDERAL HOME LOAN BANKS 4.5 03/09/2029 1,500,000.00 04/26/2024 4.74% 1,484,775.00 1,490,018.79 102.77 3.57% 1,541,586.00 21,000.00 1.52% 51,567.21 Aa1/AA+ AA+ 3.19 2.92 3133ERSP7 FEDERAL FARM CREDIT BANKS FUNDING CORP 3.5 09/10/2029 1,500,000.00 09/17/2024 3.49% 1,500,945.00 1,500,700.69 99.51 3.64% 1,492,578.00 16,187.50 1.47% (8,122.69) Aa1/AA+ AA+ 3.69 3.39 Total Agency 18,250,000.00 4.25% 18,201,817.50 18,210,610.02 100.90 3.55% 18,411,446.00 136,237.85 18.16% 200,835.98 1.91 1.80 AGENCY CMBS 3137BVZ82 FHMS K-063 A2 3.43 01/25/2027 1,000,000.00 06/06/2023 4.47% 965,625.00 990,363.38 99.54 3.71% 995,429.00 2,858.33 0.98% 5,065.62 Aa1/AA+ AAA 1.07 0.89 3137F2LJ3 FHMS K-066 A2 3.117 06/25/2027 1,000,000.00 05/18/2023 4.28% 958,984.38 985,602.68 99.07 3.71% 990,713.00 2,597.50 0.98% 5,110.32 Aa1/AA+ AAA 1.48 1.27 3137FBBX3 FHMS K-068 A2 3.244 08/25/2027 1,000,000.00 05/12/2023 3.98% 970,820.31 989,045.75 99.12 3.71% 991,219.00 2,703.33 0.98% 2,173.25 Aaa/AA+ AA+ 1.65 1.51 3137FBU79 FHMS K-069 A2 3.187 09/25/2027 1,107,096.10 12/27/2023 4.27% 1,065,882.72 1,088,424.17 98.93 3.74% 1,095,226.92 2,940.26 1.08% 6,802.76 Aa1/AAA AA+ 1.73 1.61 3137FETN0 FHMS K-073 A2 3.35 01/25/2028 720,000.00 05/24/2023 4.34% 691,987.50 707,806.13 99.07 3.75% 713,334.96 2,010.00 0.70% 5,528.83 Aa1/AA+ AAA 2.07 1.86 31 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | 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 3137F4D41 FHMS K-074 A2 3.6 01/25/2028 998,964.46 12/18/2024 4.45% 973,912.31 982,399.18 99.52 3.75% 994,200.40 2,996.89 0.98% 11,801.22 Aa1/AA+ AAA 2.07 1.89 3137FJEH8 FHMS K-081 A2 3.9 08/25/2028 1,000,000.00 09/05/2023 4.85% 957,968.75 977,844.90 100.08 3.79% 1,000,840.00 3,250.00 0.99% 22,995.10 Aa1/AA+ AAA 2.65 2.45 3137FJKE8 FHMS K-082 A2 3.92 09/25/2028 1,000,000.00 10/30/2023 5.31% 940,742.19 967,299.09 100.21 3.76% 1,002,065.00 3,266.67 0.99% 34,765.91 Aa1/AA+ AAA 2.74 2.48 3137FLMV3 FHMS K-090 A2 3.422 02/25/2029 1,000,000.00 03/27/2025 4.36% 966,015.62 972,701.07 98.66 3.83% 986,625.00 2,851.67 0.97% 13,923.93 Aa1/AAA AA+ 3.15 2.88 8,491,938.78 99.36 8,769,653.28 8.65%2.06 Total Agency CMBS 8,826,060.56 4.48%8,661,486.35 3.75%25,474.66 108,166.93 1.87 CASH CCYUSD Receivable 3,782.28 --3,782.28 3,782.28 1.00 3,782.28 0.00 0.00% 0.00 Aaa/AAA AAA 0.00 0.00 3,782.28 1.00 3,782.28 0.00%0.00 Total Cash 3,782.28 3,782.28 0.00 0.00 0.00 CORPORATE 037833BY5 APPLE INC 3.25 02/23/2026 750,000.00 02/01/2023 4.27% 728,265.00 748,967.78 99.90 3.92% 749,243.25 8,666.67 0.74% 275.47 Aaa/AA+ NA 0.15 0.14 89236TJK2 TOYOTA MOTOR CREDIT CORP 1.125 06/18/2026 1,000,000.00 02/08/2024 4.68% 921,800.00 984,670.25 98.79 3.80% 987,859.00 406.25 0.97% 3,188.76 A1/A+ A+ 0.46 0.45 69371RS56 PACCAR FINANCIAL CORP 5.05 08/10/2026 515,000.00 08/03/2023 5.07% 514,742.50 514,948.08 100.69 3.87% 518,568.95 10,186.27 0.51% 3,620.87 A1/A+ NA 0.61 0.58 06428CAA2 BANK OF AMERICA NA 5.526 08/18/2026 1,000,000.00 08/24/2023 5.48% 1,001,360.00 1,000,255.24 100.91 4.04% 1,009,079.00 20,415.50 1.00% 8,823.76 Aa2/A+ AA 0.63 0.52 61690U7W4 MORGAN STANLEY BANK NA 5.882 10/30/2026 440,000.00 10/30/2023 5.88% 440,000.00 440,000.00 101.50 4.01% 446,595.16 4,385.36 0.44% 6,595.16 Aa3/A+ AA- 0.83 0.72 438516BL9 HONEYWELL INTERNATIONAL INC 2.5 11/01/2026 1,000,000.00 01/11/2023 4.42% 933,280.00 985,386.97 98.92 3.83% 989,204.00 4,166.67 0.98% 3,817.03 A2/A A 0.84 0.81 713448FW3 PEPSICO INC 5.125 11/10/2026 360,000.00 11/08/2023 5.13% 359,902.80 359,972.24 101.05 3.87% 363,763.44 2,613.75 0.36% 3,791.20 A1/A+ NA 0.86 0.75 32 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | 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 48125LRU8 JPMORGAN CHASE BANK NA 5.11 12/08/2026 405,000.00 12/05/2023 5.11% 405,000.00 405,000.00 101.08 3.92% 409,368.74 1,322.21 0.40% 4,368.74 Aa2/AA- AA 0.94 0.82 24422EXF1 JOHN DEERE CAPITAL CORP 4.5 01/08/2027 1,000,000.00 01/10/2024 4.53% 999,220.00 999,734.29 100.76 3.73% 1,007,569.00 21,625.00 0.99% 7,834.71 A1/A A+ 1.02 0.97 17275RBQ4 CISCO SYSTEMS INC 4.8 02/26/2027 1,000,000.00 -- 4.81% 999,620.00 999,849.85 101.12 3.79% 1,011,211.00 16,666.67 1.00% 11,361.15 A1/AA- NA 1.16 1.02 857477CL5 STATE STREET CORP 4.993 03/18/2027 1,065,000.00 03/13/2024 4.99% 1,065,000.00 1,065,000.00 101.34 3.85% 1,079,260.35 15,214.09 1.06% 14,260.35 Aa3/A AA- 1.21 1.08 14913UAL4 CATERPILLAR FINANCIAL SERVICES CORP 5.0 05/14/2027 1,000,000.00 05/15/2024 4.89% 1,002,930.00 1,001,336.21 101.66 3.74% 1,016,583.00 6,527.78 1.00% 15,246.79 A2/A A+ 1.37 1.31 09290DAH4 BLACKROCK INC 4.6 07/26/2027 690,000.00 07/17/2024 4.60% 689,979.30 689,989.21 101.32 3.73% 699,076.26 13,665.83 0.69% 9,087.05 Aa3/AA- NA 1.57 1.40 023135BC9 AMAZON.COM INC 3.15 08/22/2027 1,000,000.00 07/10/2024 4.73% 954,920.00 976,206.67 99.19 3.66% 991,874.00 11,287.50 0.98% 15,667.33 A1/AA AA- 1.64 1.56 92826CAH5 VISA INC 2.75 09/15/2027 1,000,000.00 08/19/2024 4.14% 960,360.00 978,005.28 98.79 3.49% 987,891.00 8,097.22 0.97% 9,885.72 Aa3/AA- NA 1.71 1.63 69371RT97 PACCAR FINANCIAL CORP 4.0 08/08/2028 540,000.00 08/04/2025 4.02% 539,681.40 539,723.84 100.61 3.75% 543,301.02 8,580.00 0.54% 3,577.18 A1/A+ NA 2.61 2.41 02079KAV9 ALPHABET INC 3.875 11/15/2028 395,000.00 11/03/2025 3.91% 394,660.30 394,677.52 100.49 3.69% 396,926.81 2,338.45 0.39% 2,249.29 Aa2/AA+ NA 2.88 2.60 713448GL6 PEPSICO INC 4.1 01/15/2029 1,000,000.00 07/29/2025 4.18% 997,580.00 997,876.52 100.55 3.91% 1,005,480.00 17,994.44 0.99% 7,603.48 A1/A+ NA 3.04 2.71 06406RBN6 BANK OF NEW YORK MELLON CORP 4.543 02/01/2029 1,250,000.00 02/12/2025 4.81% 1,240,750.00 1,243,500.23 101.21 4.23% 1,265,178.75 23,661.46 1.25% 21,678.52 Aa3/A AA- 3.09 1.93 58933YBW4 MERCK & CO INC 3.85 03/15/2029 675,000.00 12/01/2025 3.90% 674,001.00 674,024.37 99.97 3.86% 674,775.90 1,949.06 0.67% 751.53 Aa3/A+ NA 3.20 2.98 037833DP2 APPLE INC 2.2 09/11/2029 500,000.00 03/05/2025 4.29% 457,525.00 465,273.47 94.32 3.86% 471,618.00 3,361.11 0.47% 6,344.53 Aaa/AA+ NA 3.70 3.47 Total Corporate 16,585,000.00 4.66% 16,280,577.30 16,464,398.01 100.26 3.84% 16,624,426.63 203,131.29 16.39% 160,028.62 1.57 1.38 MONEY MARKET FUND 33 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | 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 VP4530003 ALLSPRING:TRS+ MM I 1,836,509.13 -- 3.62% 1,836,509.13 1,836,509.13 1.00 3.62% 1,836,509.13 0.00 1.81% 0.00 Aaa/AAAm AAA 0.00 0.00 Total Money Market Fund 1,836,509.13 3.62% 1,836,509.13 1,836,509.13 1.00 3.62% 1,836,509.13 0.00 1.81% 0.00 0.00 0.00 SUPRANATIONAL 45950KDF4 INTERNATIONAL FINANCE CORP 4.375 01/15/2027 925,000.00 11/29/2023 4.49% 921,984.50 923,993.95 100.71 3.67% 931,557.33 18,664.86 0.92% 7,563.38 Aaa/AAA NA 1.04 0.99 4581X0EM6 INTER-AMERICAN DEVELOPMENT BANK 4.375 02/01/2027 1,000,000.00 01/30/2024 4.23% 1,004,020.00 1,001,452.48 100.76 3.65% 1,007,573.00 18,229.17 0.99% 6,120.52 Aaa/AAA NA 1.09 1.03 459058KT9 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM 3.5 07/12/2028 1,500,000.00 03/11/2024 4.23% 1,456,965.00 1,474,891.72 99.78 3.59% 1,496,752.50 24,645.83 1.48% 21,860.78 Aaa/AAA NA 2.53 2.36 Total Supranational 3,425,000.00 4.30% 3,382,969.50 3,400,338.15 100.32 3.63% 3,435,882.83 61,539.86 3.39% 35,544.68 1.70 1.60 US TREASURY 9128286L9 UNITED STATES TREASURY 2.25 03/31/2026 1,800,000.00 08/03/2022 2.99% 1,753,523.44 1,796,901.56 99.67 3.60% 1,794,076.20 10,347.53 1.77% (2,825.36) Aa1/AA+ AA+ 0.25 0.24 9128286S4 UNITED STATES TREASURY 2.375 04/30/2026 1,600,000.00 09/08/2022 3.42% 1,542,500.00 1,594,851.39 99.63 3.52% 1,594,019.20 6,508.29 1.57% (832.19) Aa1/AA+ AA+ 0.33 0.32 91282CLB5 UNITED STATES TREASURY 4.375 07/31/2026 1,750,000.00 11/22/2024 4.40% 1,749,179.69 1,749,717.64 100.47 3.55% 1,758,162.00 32,039.74 1.73% 8,444.36 Aa1/AA+ AA+ 0.58 0.56 912828YG9 UNITED STATES TREASURY 1.625 09/30/2026 2,000,000.00 06/07/2023 4.09% 1,848,984.38 1,966,024.61 98.58 3.58% 1,971,600.00 8,303.57 1.94% 5,575.39 Aa1/AA+ AA+ 0.75 0.72 91282CJC6 UNITED STATES TREASURY 4.625 10/15/2026 1,750,000.00 02/20/2025 4.26% 1,759,912.11 1,754,733.40 100.81 3.57% 1,764,099.75 17,343.75 1.74% 9,366.35 Aa1/AA+ AA+ 0.79 0.76 91282CEF4 UNITED STATES TREASURY 2.5 03/31/2027 1,450,000.00 11/28/2022 4.00% 1,363,566.41 1,425,195.42 98.76 3.53% 1,432,044.65 9,261.68 1.41% 6,849.23 Aa1/AA+ AA+ 1.25 1.20 91282CKJ9 UNITED STATES TREASURY 4.5 04/15/2027 2,000,000.00 05/17/2024 4.58% 1,995,468.75 1,997,995.14 101.23 3.51% 2,024,610.00 19,285.71 2.00% 26,614.86 Aa1/AA+ AA+ 1.29 1.23 912828X88 UNITED STATES TREASURY 2.375 05/15/2027 2,000,000.00 05/13/2025 4.01% 1,937,734.38 1,957,495.84 98.49 3.51% 1,969,844.00 6,167.13 1.94% 12,348.16 Aa1/AA+ AA+ 1.37 1.33 34 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | 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 91282CEW7 UNITED STATES TREASURY 3.25 06/30/2027 1,500,000.00 10/05/2022 4.00% 1,451,308.59 1,484,598.48 99.66 3.49% 1,494,844.50 134.67 1.47% 10,246.02 Aa1/AA+ AA+ 1.50 1.45 91282CFB2 UNITED STATES TREASURY 2.75 07/31/2027 2,000,000.00 06/21/2024 4.46% 1,901,875.00 1,950,070.67 98.87 3.49% 1,977,422.00 23,016.30 1.95% 27,351.33 Aa1/AA+ AA+ 1.58 1.51 91282CFH9 UNITED STATES TREASURY 3.125 08/31/2027 1,600,000.00 01/20/2023 3.59% 1,568,437.50 1,588,602.95 99.43 3.48% 1,590,812.80 16,988.95 1.57% 2,209.85 Aa1/AA+ AA+ 1.67 1.58 91282CFM8 UNITED STATES TREASURY 4.125 09/30/2027 1,250,000.00 03/08/2023 4.44% 1,234,130.86 1,243,928.74 101.07 3.48% 1,263,378.75 13,173.94 1.25% 19,450.01 Aa1/AA+ AA+ 1.75 1.65 91282CGH8 UNITED STATES TREASURY 3.5 01/31/2028 1,300,000.00 10/17/2024 3.90% 1,284,105.47 1,289,933.46 100.02 3.49% 1,300,253.50 19,040.76 1.28% 10,320.04 Aa1/AA+ AA+ 2.08 1.96 9128283W8 UNITED STATES TREASURY 2.75 02/15/2028 1,500,000.00 09/27/2024 3.51% 1,464,140.63 1,477,460.66 98.49 3.49% 1,477,383.00 15,580.84 1.46% (77.66) Aa1/AA+ AA+ 2.13 2.02 91282CGT2 UNITED STATES TREASURY 3.625 03/31/2028 1,000,000.00 11/08/2024 4.19% 982,343.75 988,276.82 100.27 3.50% 1,002,656.00 9,261.68 0.99% 14,379.18 Aa1/AA+ AA+ 2.25 2.12 91282CHE4 UNITED STATES TREASURY 3.625 05/31/2028 1,750,000.00 12/30/2024 4.33% 1,711,445.31 1,722,761.28 100.26 3.51% 1,754,579.75 5,576.92 1.73% 31,818.47 Aa1/AA+ AA+ 2.42 2.28 91282CHX2 UNITED STATES TREASURY 4.375 08/31/2028 1,000,000.00 12/13/2024 4.25% 1,004,101.56 1,002,947.43 102.11 3.53% 1,021,133.00 14,865.33 1.01% 18,185.57 Aa1/AA+ AA+ 2.67 2.46 91282CNY3 UNITED STATES TREASURY 3.375 09/15/2028 2,000,000.00 09/29/2025 3.64% 1,985,468.75 1,986,718.89 99.59 3.53% 1,991,796.00 20,138.12 1.96% 5,077.11 Aa1/AA+ AA+ 2.71 2.53 91282CPC9 UNITED STATES TREASURY 3.5 10/15/2028 2,000,000.00 11/10/2025 3.58% 1,995,468.75 1,995,680.89 99.90 3.54% 1,997,968.00 15,000.00 1.97% 2,287.11 Aa1/AA+ AA+ 2.79 2.61 91282CDF5 UNITED STATES TREASURY 1.375 10/31/2028 2,000,000.00 09/16/2025 3.50% 1,875,546.88 1,887,118.84 94.21 3.55% 1,884,218.00 4,709.94 1.86% (2,900.84) Aa1/AA+ AA+ 2.84 2.72 9128285M8 UNITED STATES TREASURY 3.125 11/15/2028 1,800,000.00 04/10/2024 4.66% 1,687,078.13 1,729,280.57 98.88 3.54% 1,779,890.40 7,303.18 1.76% 50,609.83 Aa1/AA+ AA+ 2.88 2.71 91282CEM9 UNITED STATES TREASURY 2.875 04/30/2029 2,000,000.00 10/27/2025 3.56% 1,955,234.38 1,957,507.63 97.79 3.59% 1,955,782.00 9,848.07 1.93% (1,725.63) Aa1/AA+ AA+ 3.33 3.12 91282CES6 UNITED STATES TREASURY 2.75 05/31/2029 1,200,000.00 09/05/2024 3.60% 1,155,984.38 1,168,261.89 97.32 3.59% 1,167,843.60 2,901.10 1.15% (418.29) Aa1/AA+ AA+ 3.41 3.21 91282CLC3 UNITED STATES TREASURY 4.0 07/31/2029 1,500,000.00 10/29/2024 4.10% 1,493,320.31 1,494,965.19 101.29 3.61% 1,519,395.00 25,108.70 1.50% 24,429.81 Aa1/AA+ AA+ 3.58 3.26 91282CFJ5 UNITED STATES TREASURY 3.125 08/31/2029 2,000,000.00 03/05/2025 4.06% 1,923,750.00 1,937,753.20 98.31 3.62% 1,966,250.00 21,236.19 1.94% 28,496.80 Aa1/AA+ AA+ 3.67 3.38 35 HOLDINGS REPORT Danville Short Term Treasury Pool | Account #21 | 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 91282CFY2 UNITED STATES TREASURY 3.875 11/30/2029 2,000,000.00 06/03/2025 4.01% 1,989,140.63 1,990,537.78 100.84 3.64% 2,016,718.00 6,813.19 1.99% 26,180.22 Aa1/AA+ AA+ 3.91 3.59 91282CGB1 UNITED STATES TREASURY 3.875 12/31/2029 2,000,000.00 07/30/2025 3.91% 1,996,875.00 1,997,173.17 100.85 3.64% 2,016,954.00 214.09 1.99% 19,780.83 Aa1/AA+ AA+ 4.00 3.67 91282CGZ8 UNITED STATES TREASURY 3.5 04/30/2030 2,000,000.00 12/09/2025 3.75% 1,979,531.25 1,979,812.34 99.28 3.68% 1,985,546.00 11,988.95 1.96% 5,733.66 Aa1/AA+ AA+ 4.33 3.95 Total US Treasury 47,750,000.00 3.95% 46,590,156.29 47,116,305.90 99.44 3.55% 47,473,280.10 352,158.30 46.82% 356,974.20 2.24 2.10 Total Portfolio 101,475,262.60 4.22% 99,585,961.06 100,491,873.45 98.15 3.63% 101,402,613.38 786,697.36 100.00% 910,739.94 2.04 1.80 Total Market Value + Accrued 102,189,310.74 36 HOLDINGS REPORT Danville NERIAD Improvement Fund (89-1 90A) | Account #24 | As of December 31, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration CASH CCYUSD Receivable 178.96 --178.96 178.96 1.00 178.96 0.00 0.02% 0.00 Aaa/AAA AAA 0.00 0.00 Total Cash 178.96 178.96 178.96 1.00 178.96 0.00 0.02% 0.00 0.00 0.00 MONEY MARKET FUND VP4530003 ALLSPRING:TRS+ MM I 32,153.43 -- 3.62% 32,153.43 32,153.43 1.00 3.62% 32,153.43 0.00 3.21% 0.00 Aaa/AAAm AAA 0.00 0.00 Total Money Market Fund 32,153.43 3.62% 32,153.43 32,153.43 1.00 3.62% 32,153.43 0.00 3.21% 0.00 0.00 0.00 US TREASURY 91282CBT7 UNITED STATES TREASURY 0.75 03/31/2026 225,000.00 03/27/2025 4.12% 217,582.03 223,205.98 99.34 3.49% 223,518.60 431.15 22.28% 312.62 Aa1/AA+ AA+ 0.25 0.24 91282CHH7 UNITED STATES TREASURY 4.125 06/15/2026 250,000.00 06/11/2025 4.14% 249,970.70 249,986.86 100.28 3.49% 250,695.50 481.63 24.99% 708.64 Aa1/AA+ AA+ 0.45 0.44 91282CLP4 UNITED STATES TREASURY 3.5 09/30/2026 250,000.00 09/16/2025 3.71% 249,472.66 249,620.54 99.93 3.60% 249,817.00 2,235.58 24.91% 196.46 Aa1/AA+ AA+ 0.75 0.72 912828U24 UNITED STATES TREASURY 2.0 11/15/2026 250,000.00 12/18/2025 3.54% 246,591.80 246,725.66 98.68 3.56% 246,696.75 649.17 24.59% (28.91) Aa1/AA+ AA+ 0.87 0.85 Total US Treasury 975,000.00 3.87% 963,617.19 969,539.04 99.57 3.53% 970,727.85 3,797.52 96.78% 1,188.81 0.59 0.57 Total Portfolio 1,007,332.39 3.86% 995,949.58 1,001,871.43 96.39 3.54% 1,003,060.24 3,797.52 100.00% 1,188.81 0.57 0.55 Total Market Value + Accrued 1,006,857.76 37 TRANSACTIONS 38 TRANSACTION LEDGER Danville Short Term Treasury Pool | Account #21|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 10/28/2025 91282CEM9 2,000,000.00 UNITED STATES TREASURY 2.875 04/30/2029 97.762 3.56%(1,955,234.38)(28,281.25)(1,983,515.63)0.00 Purchase 11/06/2025 02079KAV9 395,000.00 ALPHABET INC 3.875 11/15/2028 99.914 3.91%(394,660.30)0.00 (394,660.30)0.00 Purchase 11/12/2025 91282CPC9 2,000,000.00 UNITED STATES TREASURY 3.5 10/15/2028 99.773 3.58%(1,995,468.75)(5,384.62)(2,000,853.37)0.00 Purchase 12/04/2025 58933YBW4 675,000.00 MERCK & CO INC 3.85 03/15/2029 99.852 3.90%(674,001.00)0.00 (674,001.00)0.00 Purchase 12/10/2025 91282CGZ8 2,000,000.00 UNITED STATES TREASURY 3.5 04/30/2030 98.977 3.75%(1,979,531.25)(7,734.81)(1,987,266.06)0.00 Total Purchase 7,070,000.00 (6,998,895.68)(41,400.68)(7,040,296.36)0.00 TOTAL ACQUISITIONS 7,070,000.00 (6,998,895.68)(41,400.68)(7,040,296.36)0.00 DISPOSITIONS Maturity 10/31/2025 9128285J5 (1,600,000.00) UNITED STATES TREASURY 3.0 10/31/2025 100.000 2.87%1,600,000.00 0.00 1,600,000.00 0.00 Maturity 11/03/2025 594918BJ2 (1,000,000.00)MICROSOFT CORP 3.125 11/03/2025 100.000 4.28%1,000,000.00 0.00 1,000,000.00 0.00 Maturity 11/15/2025 912828M56 (1,700,000.00) UNITED STATES TREASURY 2.25 11/15/2025 100.000 3.04%1,700,000.00 0.00 1,700,000.00 0.00 Maturity 12/31/2025 9128285T3 (1,100,000.00) UNITED STATES TREASURY 2.625 12/31/2025 100.000 3.20%1,100,000.00 0.00 1,100,000.00 0.00 Total Maturity (5,400,000.00)5,400,000.00 0.00 5,400,000.00 0.00 TOTAL DISPOSITIONS (5,400,000.00)5,400,000.00 0.00 5,400,000.00 0.00 39 TRANSACTION LEDGER Danville NERIAD Improvement Fund (89-1 90A) | Account #24|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 12/19/2025 912828U24 250,000.00 UNITED STATES TREASURY 2.0 11/15/2026 98.637 3.54%(246,591.80)(469.61)(247,061.41)0.00 Total Purchase 250,000.00 (246,591.80)(469.61)(247,061.41)0.00 TOTAL ACQUISITIONS 250,000.00 (246,591.80)(469.61)(247,061.41)0.00 DISPOSITIONS Maturity 12/15/2025 91282CGA3 (250,000.00) UNITED STATES TREASURY 4.0 12/15/2025 100.000 4.26%250,000.00 0.00 250,000.00 0.00 Total Maturity (250,000.00)250,000.00 0.00 250,000.00 0.00 TOTAL DISPOSITIONS (250,000.00)250,000.00 0.00 250,000.00 0.00 40 IMPORTANT DISCLOSURES 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. 41 BENCHMARK DISCLOSURES Benchmark Disclosure ICE BofA 3-Month US Treasury Bill Index The ICE BofA US 3-Month Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month.At the end of the month that issue is sold and rolled into a newly selected issue.The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to,but not beyond,three months from the rebalancing date. ICE BofA 1-3 Yr US Treasury Index The ICE BofA 1-3 Year US Treasury Index tracks the performance of US dollar-denominated sovereign debt publicly issued by the US government in its domestic market. Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, a fixed coupon schedule, and a minimum amount outstanding of $1 billion. Qualifying securities must have at least 18 months to final maturity at the time of issuance. ICE BofA 1-3 Yr AAA-A US Corp & Govt Index The ICE BofA 1-3 AAA-A Year US Corporate & Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency, foreign government, supranational, and corporate securities. Qualifying securities must be rated AAA through A3 (based on an average of Moody’s, S&P and Fitch). In addition, qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, at least 18 months to final maturity at point of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for US Treasuries and $250 million for all other securities. 42 Supplement to Quarterly Investment Report Town Managed Cash Account Average Average Maturity Yield Cost Town Funds 0 4.096%3,437,965 Trust Fund 0 4.096% 1,982,867 . Community Development Agency DS/Successor Agency 0 4.096%82,777 NERIAD 0 4.096%53,120 Total LAIF Funds Managed by the Town 5,556,729$ LAIF Funds Managed by the Town (Local Agency Investment Fund) November 2025 7.1