PFM Presentation

City of Chandler
Workers Comp & Employer
Trust
Investment Management Update
November 4, 2026
Luke Schneider Annette Gaston
Managing Director Director
PFM Asset Management PFM Asset Management
A Division of U.S. Bancorp Asset Management, Inc.
For Institutional Investor or Investment Professional Use Only – This material pfmam.com
is not for inspection by, distribution to, or quotation to the general public

Chandler WCELT Investment Team
Luke Schneider, CFA Annette Gaston Michael Komori
Managing Director Director Portfolio Strategist
PFM Asset Management PFM Asset Management PFM Asset Management
schneiderl@pfmam.com gastona@pfmam.com michael.komori@pfmam.com
1

WCELT’s Investment Objectives
• Investment Objectives: In accordance with CWCELT’s Investment Policy, CWCELT’s primary
objectives in order of priority are:
− Safety – Safety of principal is the foremost objective of the investment program.
Investments for the Trust will be made in a manner that seeks to ensure the preservation
of capital in the overall portfolio.
− Liquidity – The Trust’s investment portfolio will remain sufficiently liquid to enable the
Trust to meet all operating requirements which might be reasonably anticipated.
− Yield – The Trust’s investment portfolio shall be designed with the objective of attaining
a market rate of return throughout budgetary and economic cycles, taking into account
the investment risk constraints, liquidity needs, and cash flow characteristics of the
portfolio.
2

Chandler WCELT Permitted Investments
Investment Objectives: In relation to the investment portfolio, the Trust’s investment strategy focuses on the following:
▹ Permitted Investments. CWCELT will invest in permitted securities consistent with A.R.S.§35-323. Additionally, CWCELT
may desire to be more conservative in its investment portfolio and restrict or prohibit certain investments outlined in the
Investment Policy.
Security Type Arizona Revised Statutes CWCELT Investment
Policy
U.S. Treasuries  
Federal Agencies  
Negotiable Certificates of Deposit  
Repurchase Agreements  
AZ LGIP  
Arizona Municipals  
Corporate Notes  
Commercial Paper  
Bankers’ Acceptances  
Deposit Accounts, Savings Accounts  
▹ The maximum maturity on investments will be five years from purchase date.
▹ The investment manager may sell securities prior to maturity upon approval by CWCELT and as permitted under established
guidelines:
 A security with declining credit may be sold early to minimize loss of principal.
 Liquidity needs of the portfolio require that the security be sold.
 Securities may be sold to improve the quality, yield, or target duration in the portfolio.
3

How We Partner with You
40+ years of experience in the
Our Investment Solutions
public sector*
• Fixed Income: High-quality, short- and
intermediate-term portfolios for operating $177.2b in public sector assets
funds, reserves, working capital, self- under management*
insurance funds and bond proceeds
• Local Government Investment Pools
(LGIPs): services for programs with Assets by Investment Solution1
options ranging from fully liquid cash
management to a fixed-rate, fixed-term
investment 17%
Fixed Income
• Outsourced Chief Investment Officer 42% LGIPs
(OCIO): Multi-asset class portfolios for
institutional investors OCIO
41%
• Specialized Solutions: Arbitrage rebate,
escrow restructuring, bond proceeds
investments, structured investments 1Illustrates public sector assets under management by investment solution
as of December 31, 2025. Total may not add up to 100% due to rounding.
*As of December 31, 2025. Public sector includes government, pool, and TERM. Total assets under 4
management for U.S. Bancorp Asset Management, Inc. were $416.4 billion.

Program Considerations & Achievements
• Considerations
− Trust established to hold and administer medical self-insurance funds.
− From November 2010 – January 2014, initial transfer of funds
subsidized reserve and disbursement requirements.
− Initially, the portfolio balance fluctuated due to draws. The portfolio currently has a
stable and growing core balance.
• Achievements
− Continue to manage portfolio to achieve the WCELT’s investment objectives.
− Maintain a high-quality, diversified portfolio focusing on safety, liquidity, and yield.
− Monitor and manage portfolio holdings on a daily basis.
− Provide timely economic, legislative, and market information.
− Act as general financial resource.
− Portfolio has generated in excess of $3.6 million in accrual basis earnings in the last
ten years.
5

WCELT Portfolio Characteristics1
Portfolio Composition
▸Portfolio inception March 31, 2013
▸Portfolio value (amortized cost): $24,217,798
U.S. Treasury
▸Yield to Maturity: 4.90% 78%
Corporate Note
▸$233,679 in combined accrual and money market fund 22%
earnings
Maturity Distribution Credit Quality
WCELT ICE BofA 1-3 Year U.S Treasury Index (S&P Rating)
100% AA
3% A-
80% 3%
AA-
58% 5%
60% AA+ BBB+
47%
79% 1%
39%
40% 34% AAA
A+ <1%
18% 3%
20% 14% A
0% 0% 6%
0%
0-1 Yr 1-2 Yrs 2-3 Yrs 3-4 Yrs
1. Yield and duration calculations exclude cash and cash equivalents. Sector allocation includes market values and accrued interest. As of September 30, 2026. 6
2. The portfolio’s benchmark is currently the ICE BofA 1-3 Year U.S Treasury Index. Source: Bloomberg Financial LP.

WCELT Portfolio
Total Return Performance1,2,3,4
For Periods Ending September 30, 20261,2
Effective Past Past Past Past Since
Duration Quarter Year 3 Years 5 Years Inception3
Chandler WCELT 1.78 -0.16% 1.75% 4.17% 2.26% 2.02%
ICE BofA 1-3 Year
1.74 -0.13% 1.67% 4.07% 1.90% 1.78%
U.S Treasury Index4
Difference -0.03% +0.08% +0.09% +0.35% +0.24%
1. Performance on trade-date basis, gross (i.e., before fees), in accordance with the CFA Institute’s Global Investment Performance Standards (GIPS).
2. Returns for periods greater than one year are annualized.
3. Performance inception date is March 31, 2013 (first full quarter of management).
4. The portfolio’s benchmark is currently the ICE BofA 1-3 Year U.S Treasury Index. Prior to 3/31/17 it was the ICE BofA 0-3 Year U.S Treasury Index. 7
Source: Bloomberg Financial LP.

Portfolio Information Summary
Funds Included in Report
• The following report includes the Trust’s funds held in overnight investment vehicles (savings accounts and money market
funds) and portfolios of individual fixed income securities (Core Portfolio and Liquidity Portfolio).
Portfolio Summary and Characteristics
• Funds are shown on an amortized cost, and market value basis.
˗ Amortized Cost Value (Book Value). Represents the original cost of an investment adjusted for amortization of premium
or accretion of discount.
˗ Market Value. The current price at which that security is trading between buyers and sellers. Valuation is highly
dependent on interest rate movements.
• The investment sector, maturity, and credit ratings distribution is shown based on market value basis.
• Demonstrates level of diversification by investment type and credit quality. Additionally, illustrates active management of funds
to optimize value in the current market.
Investment Program Maturity Summary
• The maturity distribution of the Trust’s funds (market value plus accrued interest) from one-day to the ten-year mandated limit.
• Demonstrates level of diversification by maturity date. Shows placement of funds to take advantage of opportunities while
ensuring that the Trust has funds to meet its cash flow needs.
Portfolio Yield Summary
• The historical yield and duration of the Trust’s funds and the monthly yield for the ICE BofA 1-3 Year U.S Treasury Index is
shown from inception.
• A historical record of the Trust’s overall fund balance and earnings rates.
8

Treasury Yields Rise Across the Curve
U.S. Treasury Yield Curve
6.00%
5.67% 5.63%
5.50%
5.28%
5.19%
5.09%
5.00% 4.89%
Yield 4.50%
4.11%
4.00%
1 Year Range
September 30, 2026
3.50%
June 30, 2026
3.00%
3mo 2yr 5yr 7yr 10yr 20yr 30yr
Maturity
Source: Bloomberg Finance L.P., as of September 30, 2026. 9

Sector Yield Spreads
1-3 Year Yield Spreads
2026 Range 9/30/2026 6/30/2026
100
80
60
40
20
0
-20
Federal Agency Mortgage AAA Auto AAA Credit AAA AA A BBB
Agency CMBS Backed ABS Card ABS Corp Corp Corp Corp
Source: ICE BofA 1-3 year Indices via Bloomberg Finance L.P. as of September 30, 2026. Spreads on ABS and MBS are option-adjusted spreads based on weighted average
life; spreads on agencies are relative to comparable maturity Treasuries. 10
CMBS is Commercial Mortgage-Backed Securities and represented by the ICE BofA Agency CMBS Index.

Fixed-Income Index Excess Returns
Excess Returns
1-3 Year Indices
Federal Agency Agency CMBS ABS Corp A-AAA
0.50%
0.44%
0.37%
0.28%
0.25%
0.13%
0.00%
-0.05%
-0.11%
-0.14%
-0.25%
-0.26%
-0.50%
3Q26 1-Year
Source: ICE BofA Indices. ABS indices are 0-3 year, based on weighted average life. Agency CMBS represented by ICE BofA Agency CMBS Index. As of September 30, 11
2026.

Fixed-Income Index Total Returns in 3Q 2026
1-3 Year Indices
Third Quarter 2026 Returns 1-Year Return
4% 4%
3.06%
3% 3%
2.45%
2.07%
2% 2% 1.87%
1.67%
1% 1%
0.45%
0% 0%
-0.13% -0.11% -0.20% -0.14%
-1% -1%
ABS BBB ABS BBB
Treasury Agency A-AAA Treasury Agency A-AAA
Corp Corp
U.S. Corp U.S. Corp
Source: ICE BofA Indices. ABS indices are 0-3 year, based on weighted average life. As of September 30, 2026. 12

Fixed-Income Sector Outlook – 4Q 2026
Sector Our Investment Preferences
C O M M E R C I A L P A P E R
/ C D
T R E A S U R I E S
T-Bill
T-Note
F E D E R A L A G E N C I E S
Bullets
Callables
S U P R A N A T I O N A L S
C O R P O R A T E S
S E C U R I T I Z E D
Asset-Backed
Agency Mortgage-Backed
Agency CMBS
M U N I C I P A L S
Excess return potential
Limited Carry- driven Strong 13
Current outlook Outlook one quarter ago

BofA Fixed-Income Index Returns
Effective
September 30, 2026 Yield YTD 1 Month 3 Month 1 Year 3 Years 5 Years
Duration
1-3 Year Indices
U.S. Treasury 1.80 4.84% 0.55% (0.53%) (0.13%) 1.67% 4.07% 1.90%
Agency 1.71 4.87% 0.79% (0.51%) (0.11%) 1.87% 4.17% 2.03%
Corp A-AAA 1.86 5.27% 0.87% (0.64%) (0.20%) 2.07% 4.92% 2.54%
Municipals 1.86 3.78% 0.20% (1.37%) (1.16%) 0.72% 3.08% 1.53%
1-5 Year Indices
U.S. Treasury 2.50 4.92% (0.39%) (0.97%) (0.82%) 0.72% 3.94% 1.34%
Agency 2.41 4.96% (0.14%) (1.01%) (0.82%) 0.93% 4.00% 1.51%
Corp A-AAA 2.66 5.43% (0.20%) (1.16%) (1.04%) 1.00% 5.00% 2.04%
MBS (15 Years) 3.42 5.52% (1.78%) (2.06%) (2.14%) (0.34%) 4.59% 0.61%
Municipals 2.48 5.49% 0.58% 0.61% 0.58% 4.68% 0.14% 1.81%
Master Indices (Maturities 1 Year and Greater)
U.S. Treasury 5.73 5.14% (2.73%) (2.29%) (3.15%) (2.01%) 3.15% (1.17%)
Agency 3.39 5.06% (0.93%) (1.51%) (1.67%) 0.15% 4.04% 0.80%
Corp A-AAA 6.30 5.87% (3.09%) (2.64%) (3.87%) (2.36%) 4.60% (0.54%)
MBS (0 to 30 Years) 5.93 5.89% (3.02%) (3.27%) (4.14%) (1.48%) 4.55% (0.39%)
Municipals 7.65 4.42% (3.74%) (4.05%) (5.78%) (2.35%) 3.02% (0.15%)
Source: ICE BofA Indices. Returns greater than one year are annualized. 14

Disclosures Disclaimer
The views expressed within this material constitute the perspective and judgment of U.S. Bancorp Asset Management,
Inc. at the time of distribution and are subject to change. Any forecast, projection, or prediction of the market, the
economy, economic trends, and equity or fixed-income markets are based upon current opinion as of the date of issue
and are also subject to change. Opinions and data presented are not necessarily indicative of future events or expected
performance. Information contained herein is based on data obtained from recognized statistical services, issuer reports
or communications, or other sources, believed to be reliable. No representation is made as to its accuracy or
completeness.
PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset Management, Inc.,
which is the legal entity providing investment advisory services. U.S. Bancorp Asset Management, Inc. is a registered
investment adviser, a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S. Bank N.A. is not
responsible for and does not guarantee the products, services, or performance of U.S. Bancorp Asset Management, Inc.
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
15