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Home My WebLink AboutFIN 2026-03-09 Item 1A - Discussion - Tukwila Investment Advisor IntroductionCity of Tukwila Thomas McLeod, Mayor Marty Wine, City Administrator AGENDA BILL ITEM NO. 1.A. Agenda Item Sponsor Legislative History Recommended Motion Tukwila Investment Advisor Introduction Aaron BeMiller, Finance Director Finance Department March 9, 2026 ❑x Discussion Only Finance & Governance Committee ❑ Action Requested EXECUTIVE SUMMARY As part of the Revenue Proviso, Finance committed to improving the City's investment returns beyond what is earned through the Local Government Investment Pool (LGIP). After a competitive process, the City selected Clearwater Advisors to assist with this work. Together, Finance and Clearwater have defined a clearer investment strategy, which is now being put into action. Clearwater Advisors will provide an introductory presentation at tonight's Finance & Governance Committee meeting. DISCUSSION To meet the Revenue Proviso goal, Finance reviewed several investment advisory firms that specialize in working with local governments. Firms were evaluated based on their experience, qualifications, and ability to support the City's financial goals. Clearwater Advisors was selected as the best fit. Since then, Finance and Clearwater have reviewed the City's current investments, confirmed the guidelines set by policy, and clarified an appropriate level of risk for City funds. In early 2026, the City began making investment purchases aimed at increasing returns while continuing to protect principal and maintain sufficient liquidity. This evening's presentation will provide an overview of Clearwater Advisors, its investment approach, and its role in supporting the City's long-term investment strategy. ATTACHMENTS • Clearwater Introduction Presentation 2 ............... c earwater ADVISORS City of Tukwila — March 9, 2026 Firm Introduction & Investment Program Discussion 3 b'tit d i,t,:',$f,.:: ` Loa. „ tt .....; 4 1111111111nressoing,;:,,,: Clearwater Advisors Overview earwater ADVISORS • Established in Boise, Idaho in 2001 on the abiding principle that investors deserve and should require complete transparency and accountability from their investment managers • -S4.9bn of assets managed for a variety of clients including corporations, pension funds, insurance companies, cities, counties, universities, endowments, foundations, and private clients • Sole focus on investment in USD-denominated, investment grade fixed income "across the yield curve" • 100% owned by founders and current employees; successfully executed transition from founders to current management in 2018 • Registered Investment Advisor with the Securities and Exchange Commission Clearwater Advisors at a Glance (April 2025) Ownership Assets Under Management Boise, Idaho 3 Portfolio Managers 1 Research Staff 1 Chief Executive Officer 4 Operational and Development Staff 1 Chief Compliance Officer (External) 3 Strategic Advisors (Founders) 100% Founder/Employee Owned $4.9 Billion 45 40 35 30 25 20 15 10 5 Portfolio Management Team Experience Avg Yrs Experience PMs • Avg Yrs Clearwater Research Strategic Advisors 5 ' -4 ae r ADV|SOHS �� Expert Investment � ��= �� N��0�k�� N��0��l�� N��0��l�� (112) ~ Garrett Cudahey, CFA, CPA (Senior Portfolio Manager) 20 Years of Experience 2 Year with Clearwater Advisors • Extensive experience analyzing and trading Treasury, AoenCy, Municipal, Corporate and ABS securities • Specializes in portfolio design and construction to help clients solve unique challenges while managing risk • Assists in credit evaluation across the {}Vrpona&a. Municipal and ABS sectors • Actively participates/contributes in all Investment Committee and Credit Committee proceedings Rhet Hulbert (Senior Portfolio Manager) 22 Years Of ^-°p"''e''ce 22Y�8y��v�&9rdV��;0| | ��/� • Directly manages high quality, short to intermediate duration, custom, fixed income portfolios for corporations, public entities, universities, and foundations • Extensive experience managing Treasury, Corporate, ABS, and MBS portfolios • Specializes in technical accounts with large and frequent cash fluctuations, custom constraints, or other unique challenges • Responsible for analysis and forecasts for firm wide mortgage -backed security and asset backed security trading • Actively participates/contributes in all Investment Committee and Credit Committee proceedings Brandon Beall, CFA(Portfolio Manager) 13 Years of ^-°p°'°'ce 4 Years �� C8r�G&9rdN��;0| |with�,� m Directly responsible for portfolio management and analysis across e spectrum ofinvestment guidelines and fixed income indices predominately across short and intermediate durations Responsible for relative value and securities trading across fixed income sectors with 8k]cuS on corporate and asset - backed securities Actively participates/contributes in all Investment Committee and Credit Committee proceedings Holds the Chartered Financial Analyst (CF/\) designation. He is a member nfthe CFA Institute and serves as a board member for the CFASociety ofIdaho 4 ' cie r ADV|SOHS ^� Expert Investment � ��= �� N�� N��0�� N��0�M�� (2/2)~ Richard Lin, CIFA/H28d of Research) 21 Years OfExperience | I Years with Clearwater Advisors • Analyst responsible for performing fundamental credit analysis and overseeing the Urnn's investable credit universe • Assists the portfolio managers in monitoring the credit quality ofportfolio holdings, identifying relative value opportunities, and executing trades inthe primary market • Actively participates/contributes in all Investment Committee and Credit Committee proceedings • Prior professional experience includes advisory and valuation work on ABS, CMBS, CLOs, and municipal securities • Holds the Chartered Financial Analyst (CFA)designahon Dan Bates (Chief Executive Officer) YSYears ofEx'�e��nne | 7Years w�/� h�k�mn*ohprd�sora —`| • Responsible for general oversight of Clearwater Advisors in conjunction with the Management Committee • Spent 11 years working in investment banking with Credit Suisse and Goldman Sachs in London, Dubai, OOh8 and New York. Most recently, Dan oversaw K4&A, leveraged finance and capital markets transactions on behalf of financial sponsors, sovereign wealth funds and family offices. • Advisory background provides acomplementary perspective tothe portfolio management team inservicing clients • Actively participates/contributes in all Investment Committee and Credit Committee proceedings Rhet Hulbert partfaio Manager El Firm Owner JR1111altanDaterlOgr";:,,rrr,:sr . Organizational Chart INVEST ENT TEAM Garrett Cudahey Brandon Beall Dan Bates Richard Lin COMPLIANCE Hayley Nelson cf-;-er compliance Officer ONCA Compliance) Dave Dunn OPERATIONS & TECHNOLOGY CFA, CPA, CAIA CFA CFA. i Chief Technali&gy Officer Erri Portfolio Manager Portfolio Manager Heat) of Research ! i ern Sen. me s STRATEGIC ADVISORS & FOUNDERS Mike Boren Founder & Strategic iterelsor Dave Boren Founder & Strategic Advisee' Doug Bates Founder & Stratertic Advisor Michelle Martin CIPM Trade Operations Mgt & Compliance rknaiiiiist earwater ADVISORS Mike Dunn Sotware Deveicer 8 1111111111nressoing,;:,,,: Primary Contact & Portfolio Manager • Background Garrett Cudahey, CFA, CPA, CAIA Senior Portfolio Manager earwater ADVISORS — 2024 to Present: Senior Portfolio Manager at Clearwater Advisors — 2020-2024: Chief Investment Officer at Government Portfolio Advisors (GPA). Oversaw all aspects of the investment program with assets of Si7bn and over a dozen Washington government clients. — 2008-2020: Oregon State Treasury: Managed the S30bn Oregon Short Term Fund; helped oversee fixed income and private credit investments for the Oregon Public Employees Retirement Fund and the State Accident Insurance Fund (-12 years) 2005-2008: Deloitte — Audit and assurance professional with a focus on insurance companies, retirement plans and real estate investment firms. Education / Credentials BS in Business Administration from Oregon State University MBA from Indiana University's Kelley School of Business. Certified Public Accountant Chartered Alternative Investment Analyst Holds the Chartered Financial Analyst designation 9 „,„„+„.++++„,.„,„;„,,,,,„„„.„„„:::,„.„,j„,+,,„„..„....„?„..++++++++++++++++;,+++++++++;+i+?.,!„+i+.+++g4•1+i+jfgq;,ISXXtV,,, Deep Familiarity and Experience Working with State/Local Governments Boutique Firm Alignment of Incentives Conservative Investment Approach +2•1111111,++++,m+++,g0++++++,;++++ ++++++++++++ Why Clearwater Advisors? (1/2) We have managed assets for state/local governments and other public institutions BOISE STATE UNIVERSITY since inception in 2001; our first account was opened with Boise State University IDA and PERSI shortly thereafter FOUNDATION + ++ ita UNIVERSITY of ALASKA 4,4 NT FUND PERS! THE D I Sni cT Sole focus focus on investment grade fixed income since inception - we don't sell any other products Focused specialization drives value for our clients • Smaller size of firm allows us to focus on every client - every client is extremely important • The attention and access our clients receive from us would not be possible if we were a large institution distracted by the many operational and investment capacities spread across the entire firm Employee/Founder owned and -3/4 of our employees have equity or equity -like exposure If our clients do well, Clearwater Advisors and our employees do well Our foundation is rooted in designing and implementing practical fixed income strategies that work in both calm and volatile market situations Preservation of capital and liquidity have always been our primary investment objectives 10 8 Direct Access to Portfolio Managers Demonstrated History of Navigating Challenging Market Conditions 9 Consultant -Like Advisory Services 10 earwater ADVISORS Why Clearwater Advisors? (2/2) Every client has direct access to their portfolio managers Our portfolio managers are responsible for client relationships • Every portfolio is constructed using an investment policy and then further tailored to meet the unique needs of each client We do not have any "general" portfolio strategies With over 24 years of operations, we have successfully navigated multiple market crisis as well as other challenging market conditions (rising rates, extended low -rate environment, industry -specific market shocks, etc.) • We aim to become a valuable resource to our clients not only as an investment manager but also as a trusted advisor that can be consulted on a variety of topics Investment Transparency, Reporting and Compliance • Real-time access to portfolio holdings, risk metrics, reporting, compliance and performance via Clearwater Analytics 'tiq{ttrt' clearwater ADVISORS Extensive Experience and Deep Familiarity Working with State/Local Governments and Higher Education Institutions ■ Extensive experience investing across investment grade asset classes (-77% of assets are invested in US Treasuries, Agencies and Corporates) ■ Extensive experience managing short (0-1 year) and intermediate (1-5 year) mandates (79% of assets) ■ Extensive experience working with SLED (State/Local government + higher EDucation) clients (35% of assets) Clearwater Advisors AUM Breakdown By Asset Class By Mandate Type By Client Type 1 2ote: AUM data as of July 2025. Current Government Clients 17 accounts across 12 clients with $1.57 billion in assets Pubik mp; RAI inopy nrr: tj„gdpft. BOE STATE UNIVERSITY FOUNDATION CITY OF CAT:""" LW UNIVERSITY of ALASKA any 7)-aolition.sOne ..rliaska IDAHO ENDOWMENT!FUN THE DISTRICT GREATER HnISE AUDITORIUM OISTRICT Universityotldaho Foundation ruu Idaho Petroleum Storage Tank Fund W044" € RS' COmPf rt 7,4 All C4,1 clearrater ADVISORS Washington Based Clients AIRLINES c$cattle Mutes I PUGET SOUND GONZAGA UNIVERSITY 13 11 2•1111111.1exignog?;:,,,: Robust Risk Controls Utilization of Third -Party Custodians • Clearwater Advisors is restricted from taking custody of client assets • All accounts utilize custody accounts to hold investments — Clearwater Advisors is custody bank agnostic • Clearwater Advisors only has authority to execute buying and selling on behalf of the client in the account • Trading permission can be revoked at any time Compliance Program / Chief Compliance Officer Hayley Nelson Chief Compliance Officer Chief Compliance Officer for Clearwater Advisors since 2018 • Previously worked in compliance for multiple investment advisory firms as well as for the SEC where she examined registered investment advisors and investment companies • While at the SEC, received a national award for outstanding performance and testified on behalf of the government agency on multiple occasions earwater ADVISORS Independent Reporting / Accounting Provider • Market leading SaaS solution provider for automated investment accounting, aggregation, reconciliation, and reporting • —$6.4 trillion dollars of AUM on their system with over 13,000 users • Tri-party reconciliation on a daily basis (custody, investment manacier. third-oartvdata) • Real-time compliance monitoring CLEARWATER ANALYTIC'S Company Risk Mitigants • No debt • 1 year of operating expenses held in cash and cash equivalents • Redundancy (roles and systems) • Insurance • Information security policies and procedures • Equity ownership or equity -like exposure for all employees • SEC regulation • Company operating history — established in 2001 14 12 c earwater ADVISORS City of Tukwila Investment Program Considerations 15 13 2•1111111ingsmg,t20,?;:,,,: Cash Flow Driven Investment Program (1/2) earwater ADVISORS Effective cash flow forecasting is fundamental to the successful management of any investment program. This vital process, which can be tailored to be as detailed or consolidated as needed, serves several critical purposes: Optimizing Investable Balances: It provides a clear understanding of the maximum amount that can be safely invested without compromising liquidity Tracking Balance Trends: By identifying whether cash balances are growing or shrinking, we can proactively adjust investment strategies Managing Seasonal Patterns: Recognizing seasonal inflows and outflows allows for more precise risk management and opportunistic investing Preparing for Contingent Needs: Forecasting ensures the City is well -prepared for unforeseen expenditures that may arise abruptly. Our goal is to help Cities achieve 80-90% accuracy in forecasts - We always err on the side of caution, prioritizing ample cash on hand - This conservative approach is further reinforced by safeguards built into the design and execution of your investment portfolio, ensuring liquidity and security are never compromised Effective investment programs are based on a deep understanding of an entity's cash flow cycle and contingent cash needs 16 14 ir 211111111.1exignotg;:,,,: Cash Flow Driven Investment Program (2/2) INVVVVVVVVVVVVVVVVVVVVVVVWWwwweeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeew "qmmookavememweem kismittall1111411414141414141WWWWWWWWWW4f4f410,:„k earwater ADVISORS QQQ9000000004. W,WA't Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $ (5,416,667) $ (5,416,667) $ (5,416,667) $ (5,416,667) $ (5,416,667) $ (5,416,667) $ (5,416,667) $ (5,416,667) $ (5,416,667) $ (5,416,667) $ (5,416,667) $ (5,416,667) $ (1,842,050) $ $ (7,382,050) $ (250,000) $ (250,000) $ (300,000) $ (400,000) $ (500,000) $ (500,000) $ (750,000) $ (750,000) $ (400,000) $ (350,000) $ (300,000) $ (250,000) $ (10,500,000) $ (7,500,000) $ (7,500,000) $ (7,500,000) $ (7,500,000) $ (7,500,000) $ (7,500,000) $ (7,500,000) $ (7,500,000) $ (7,500,000) $ (7,500,000) $ (7,500,000) $ $ 1,829,678 $ 1,798,749 437,500 $ 2,056,862 6,125,000 $ 1,999,399 2,187,500 $ 2,136,414 $ 2,081,018 $ 2,101,638 $ 2,131,879 $ 2,026,737 $ 2,097,645 $ 2,016,317 $ 2,223,663 6,125,000 2,187,500 437,500 $ 1,750,000 $ 1,750,000 $ 1,750,000 $ 1,750,000 $ 1,750,000 $ 1,750,000 $ 1,750,000 $ 1,750,000 $ 1,750,000 $ 1,750,000 $ 1,750,000 $ 1,750,000 $ 2,083,333 $ 2,083,333 $ 2,083,333 $ 2,083,333 $ 2,083,333 $ 2,083,333 $ 2,083,333 $ 2,083,333 $ 2,083,333 $ 2,083,333 $ 2,083,333 $ 2,083,333 316,667 301,781 296,742 294,106 310,161 313,800 304,369 301,349 299,486 297,900 316,595 319,989 3,481,250 3,481,250 3,481,250 3,481,250 3,481,250 3,481,250 3,481,250 3,481,250 3,481,250 3,481,250 3,481,250 3,481,250 $ 2,240,000 $ 2,240,000 $ 2,320,000 $ 2,400,000 $ 2,560,000 $ 2,720,000 $ 3,040,000 $ 3,360,000 $ 3,200,000 $ 3,040,000 $ 2,400,000 $ 2,240,000 $ (4,465,738) $ (1,511,554) $ (790,978) $ 4,816,422 $ 1,091,991 $ (2,829,315) $ (906,076) $ (558,855) $ (475,860) $ 5,608,462 $ 1,018,329 $ (8,012,981) Total $ (65,000,000) $ (9,224,100) $ (5,000,000) $ (93,000,000) $ 17,500,000 $ 24,500,000 $ 21,000,000 $ 25,000,000 $ 3,672,946 $ 41,775,000 $ 31,760,000 $ (7,016,154) $8,000,000 ';g 000, NY S 7, D00,000 $ 2, 000, DOC $- $(2,000,000). S (A, 000, (-)00) (G, .000, 000 $(8,000,(K)0) 0, 00, ID 1)0 ) 5,112,000,000) 111 3 • We get to know our clients and work with the team to generate cash flow forecasts and discuss contingent needs. • Our effort highlights seasonality and is updated for known capital spending. • Each month when we get updated cash and LGIP balances, we check progress against our plan. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec • Payroll • Debt Service Construction & Equipment General AP/Intergovernmental • Property Tax • Water/Sewer • Sales Tax • Other Tax • Grants • Govt Service Charges Source: City of Tukwila AFR, Budget Documents and CIP 1 7 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 earwater ADVISORS Target Investment Program Balances Cash Min $15 Million Cash Max $25 Mi I I i on nqAdA aCfaAaMakaKIka,44WkAn‘reify,aNt'qt%,‘ WfdAn.th IF0440\04****146W400t4Fk)440441*P aoa,9)tbileXaFtlpaWXb''' Jan Cash & Reserve Balances 'atgaVailitt4 iat,Sitnikaalit,"t" t ,asaaaarteAgiabiNW.AMFROWANI3A4UfailtAbi 41!"4444r' -7-444,0gepoce#10"4,04,080$4.*4'' -..wAstiolkiala14,0„,,s,§2,101,0,4041,14,41,11,011,,ev Aoomoototioallaxifs04' , •,,A4V4 ,r4 ,i\nnkki:4444646,n FRI s* Na,a ' , aaa, *aaa,O, r Ira 4nnn. • vn n n , als ' "S. t',qwfx. • Feb Mar Apr May Jun Jul Aug Sep Reserve Account Balance IN=1 Cash Balance *Cash Min Cast) Max • The range of 15-25% of assets held in Bank & LGIP appears appropriate given our forecast and fiscal position. • Upper and lower cash bounds serve as trigger to discuss and take action to ensure ample cash is on hand and resources as being conservatively optimized. Oct Nov Dec 18 1111111111nressoing,;:,,,: clearwate ADVISORS Strategic Investment Approach: Maximizing Returns Prudently By segregating investable assets, we strategically expose them to a prudent level of risk, consistent with best practices and as allowed by statute, with the primary goal of outperforming cash and the Local Government Investment Pool (LGIP) over the long term. In high -quality fixed income markets, we leverage two key factors to achieve higher returns: • Maturity Extension: Prudently extending the duration of investments. • Credit Extension: Carefully selecting higher -quality credit opportunities such as corporate, agency and municipal securities that offer more return than Treasury securities. These factors have historically rewarded investors, and we anticipate they'll continue to benefit long-term oriented portfolios like yours. We further employ modern portfolio management techniques and diversification to enhance returns while reducing overall portfolio risk. This allows us to craft customized portfolios that are optimal for the City's needs, incorporating ample risk controls to navigate various market conditions and unforeseen cash needs. 1 9 2•1111111.1exignog?;:,,,: Building the Right Portfolio earwater ADVISORS Asset Allocation Portfolio 1 Portfolio 2 Portfolio 3 ICE BofA 1-5 Year US ICE BofA 1-5 Year US ICE BofA 1-5 Year AAA -A Treasury Index Bullet Agency Index US Corporate Index Unhedged USD Bloomberg US FRN < 5 yrs Total Return Index Value 25.00% 10.00% 75.00% 65 00% 0.00% 25 00% 0.00% 0.00% 10.00% 50.00% 15.00% 25.00% Portfolio 1 Annualized Return Standard Deviation 1.89% Return/Risk 1.34 Maximum Drawdown -6.54% Max Drawdown Date October 31, 2022 P1111111P001111111 Yield 00100.0 motom Agoowiw Duration Portfolio 2 2.72% 1.60% -6.00% February 28, 2023 3.85% ected Strategy Portfolio 3 ICE BofA 1-5 Year ICE BofA 1-5 Year AAA - US Treasury Index A US Corporate Index 404,40.*,*,440M,,,q0,444,Akirf#004 \ • 00410:Ark,sowitkw;;,2t,n1,1400:4zi,,W4;04 vootkil*,1:k801444k.k4YrUmkti.0114044.•\ :w40040°,40., -7.36% October 31, 2022 March 31, 2009 2.56 2.55 The core objective of our portfolio design process is to safeguard assets against market volatility, generate enhanced returns beyond cash/LGIP, and provide liquidity for the City's operational and capital spending requirements. Risk management is the priority and drives our investment portfolio design process. 20 Source: Bloomberg, ICE BofA Indices; Past Performance is no Guarantee for Future Returns. Data uses monthly returns for the 20- year period ending August 31, 2025 8 A\‘'x.721111111111111W-; $1.80 $1.70 $1.60 $1.50 $1.40 $1,30 $1.20 $1.10 $1.00 Portfolios Growth Over Time Growth Over Time The combination of adding duration, credit and floating rate exposure results in portfolios that have optimal risk -per -unit -of return dynamics 1•••• 03 03 9 9 9 9 •11.4 CL CL cr < 0 0 < Portfolio 1 CE 1-5 Year US Treasury Index 0 0 0. 4', L4, 0 m .Portfoho 2 M • rr Ln ▪ 4-4 e7I a tz ezt ‹t 0 et 0 < 00 ‹t 1.13; 0 cn Q. earwater ADVISORS 01 0 0 NI • N 01 Cr 'Cr • N r4 N N • N N ' .* 4:4 4t4 't CL CL 0 < < < 0 < 0 < 0 —.'Portfolio 3 —kw—, ICE BofA 1-5 Year AAA -A US Corporate Index BofA 0-3 Month U8TheasIndex Asset Allocation Portfolio 1 Portfolio 2 Portfolio 3 ICE BofA 1-5 Year US ICE BofA 1-5 Year US ICE BofA 1-5 Year AAA -A Bloomberg US FRN < 5 yrs Treasury Index Bullet Agency Index US Corporate Index Total Return Index Value Unhedged USD 25.00% 10.00% 75.00% 0.00% 65.00% 25.00% 0.00% 0.00% 10.00% 50.00% 15.00% 25.00% Selected Strategy Source: Bloomberg, ICE BofA Indices; Past Performance is no Guarantee for Future Returns. Data uses monthly returns for the 20- year period ending March 31, 2025 21 19 35% 30% 25% 20% 15% 5% 0% 2•1111111.1exignog?;:,,,: earwater ADVISORS Strategy Outline — Transparency & Accountability Duration 1.50 1.20 Weighted Average Maturity 2.00 1.60 1.80 2.40 0-1 Year 0-5 Year Maturity Profile 1-2 Year 2-3 Year 3-4 Year Liquidity Buffer — more than 20% of portfolio set to come due in next 12 months to support cash balances 4-5 Year Asset Allocation Targets Ni US Treasury Agency r1/4, Corporate/CP US Treasury Agency Corporate/CPA,- unicipal Supranational Floating -Rate 15. /0 5.00% 25.00% 15.00% 10.00% 25.00% 10%-100% 25%-75% 15%-25% 5%-25% 5%- 10% 10%-50% unicipal On pause for now Supranation 100% 35% 3% 5% N/A N/A 10 Years 10 Years 5.5 Years 10 Ye ars 10 Years 10 Years ICE BofA 0-3 Year US Treasury Index Treasury/Agency Corporate/Muni Our strategy is to ensure the safety and liquidity of the City's funds, while outperforming cash and LGIP over the long term. We achieve this through: • Prudent exposure to rewarded risk factors like duration and credit. • Active management designed to enhance the City's reserve growth. Rigorous risk management parameters are established and enforced, ensuring discipline, transparency, and accountability to the City and its stakeholders. 1.5%- 3.0% 0.50%- 1.5% 22 AN112111111111W:', . Timeline & Progress to Date City of Tukwila INVECIMENT PROGRAM T MaINE Dec '25, Str egy & Policy Custody Bank Linking Cash Flow Forecast Analytics Setup & Compliance Rule Building Reporting Setup & Training Investment Account Buildout Feb 26 Mar '26 earwater ADVISORS Jun '26 Aug '26 City of Tukwila tNvEs.i MEW' DEN,0YWEN1 TRACKER $21M NVESTED TO DATE 30% COMPLETE # $49M remaining to reach target by August 1, 2026 Cash Flow & Portfolio Meeting Apr 14, 2026 Cash Flow & Portfolio Meeting Jul 14, 2026 'TARGET MOM 1. 2026 Target SYR)M, by Aug 1, 202 $70M TOTAI. TAN,',ET 23 21 Transactions to Date earwater ADVISORS Transaction Type Trade Date Identifier Clearwater Seetm- Description Base Current Moody's Coupon Rate Final Maturity Units Price Base Amount Transaction Yield S&P Rating Rating Buy 02/20/2026 02079KBK2 Corporate Buy 02/25/2026 023135CT1 Corporate Buy 02/20/2026 06368L3M 6 Corporate Maturity 02/24/2026 3130AL7M0 US Agency Buy 02/25/2026 61776NU35 Corporate Buy 02/25/2026 91282CMH1 US Treasury Buy 02/20/2026 91282CNM9 US Treasury Buy 02/11/2026 91282CPA3 US Treasury Buy 02/04/2026 91282CPT2 US Treasury Buy 02/04/2026 91282CPW5 US Treasury Buy 02/11/2026 93974FGR8 Municipal Buy 02/11/2026 93974FGS6 Municipal ALPHABET INC A M AZON.COM INC BANK OF MONTREAL FEDERAL HOME LOAN BANKS MORGAN STANLEY PRIVATE BANK NA UNITED STATES TREASURY UNITED STATES TREASURY UNITED STATES TREASURY UNITED STATES TREASURY UNITED STATES TREASURY WASHINGTON STATE WASHINGTON STATE 4.100 02/15/2031 1,000,000.00 100.313 (1,004,382.78) 4.029 AA+ Aa2 4.100 11/20/2030 750,000.00 100.515 (762,147.92) 3.977 AA Al 4.479 06/04/2027 1,000,000.00 100.528 (1,015,485.10) 4.088 A- A2 0.625 02/24/2026 (1,000,000.00) 100.000 1,000,000.00 0.000 AA+ WR 4.437 02/08/2030 750,000.00 99.938 (751,844.70) 4.518 A+ Aa3 4.125 01/31/2027 1,500,000.00 100.492 (1,511,997,80) 3.577 AA+ Aal 3.875 07/15/2028 1,500,000.00 100.883 (1,519,664.84) 3.485 AA+ Aal 3.625 09/30/2030 1,500,000.00 99.656 (1,515,159,68) 3.706 AA+ Aal 3.500 01/15/2029 1,500,000.00 99.625 (1,497,565.61) 3.635 AA+ Aal 3.750 01/31/2031 1,500,000.00 99.637 (1,495,483.10) 3.831 AA+ Aal 3.660 02/01/2029 1,000,000.00 99,893 (998,930.00) 3.699 AA+ Aaa 3.740 02/01/2030 1,000,000.00 100,000 (1,000,000,00) 3.741 AA+ Aaa 3.667 12,000,000.00 - (12,072,661.53) 3.520 AA Aa2 24 22 ' ae r ADV|SOHS Disclaimer: Certain investments, including those involving futures, U other derivative products give rise to substantial risk and are not suitable for all investors. The risks inherent in these investments may lead to material loss of capital. Past performance may not be indicative of future results. Results portrayed, including those of indices, reflect the reinvestment of dividends, as well as the effects of material market and economic conditions. Different market and economic conditions could have material impact on performance. Index results are used for comparison purposes only and have been unaltered from their original state as received from independent sources. Historical results reflect returns that o typical investor would have received based on stated fees and do not necessarily reflect returns that actual investors received. Opinions expressed are our present opinions only. The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. This document is intended for your internal use only and may not be distributed outside your organization. Clients are urged to compare the account statements they receive from their custodian with any statements or performance reports they receive from Clearwater Advisors.