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• Collateralized Mortgage Obligations (CMO) • Commercial Mortgage-Backed Securities (CMBS) • Corporate debt securities issued by U.S. or foreign entities including, but not limited to, limited partnerships, equipment trust certificates and enhanced equipment trust certificates • Eligible instruments issued pursuant to SEC Rule 144(a) • Municipal Bonds With the exception of Debt obligations of the U.S. Government, its agencies, Government Sponsored Enterprises and US TIPS, the total investment in any fixed income security issuer shall not exceed 3% of total plan assets. These restrictions do not apply to fixed income funds or ETFs. Quality The portfolio will maintain a minimum weighted average quality of A-at all times. Individual securities shall have a minimum quality rating of Baa3 by Moody's or BBB- by Standard & Poor's (S&P). Duration The manager will maintain the portfolio duration within +1-25% of the benchmark duration at all times. Diversification • No more than 5% of the portfolio assets may be invested in any individual issuer, with the exception of securities issued or guaranteed by the U.S. Government, its agencies, and Government Sponsored Enterprises. • No more than 10% of the portfolio may be invested in securities issued under Rule 144A. Performance Benchmarks: The performance of the total Plan shall be measured over a three and five-year periods. These periods are considered sufficient to accommodate the market cycles experienced with investments. The performance shall be compared to the return of the total portfolio blended benchmark shown below. Total Portfolio Blended Benchmark 7.50% S&P500 1.50% Russell Mid Cap 2.50% Russell 2000 1.00% MSCI EM FREE 2.00% MSCI EAFE 0.50% Wilshire REIT 52.25% BC US Aggregate City of Pleasanton Employee Benefit Fund Pension Plan Investment Guidelines Document—HighMark Capital Management, Inc. (v. 04-18-2018-RY) 5