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HomeMy WebLinkAbout04. Governmental Accounting Standards Board (GASB) 45 Trust Third Quarter ReportPARS: Central Contra Costa Sanitary District Third Quarter 2015 Presented by Andrew Brown, CFA JHIGHMARK CR CAPITAL MANAGEMENT y CCCSD Asset Allocation Total Assets: $38,879,134 Period Ending 9 -30 -15 3Q15 Return: -4.02% 1 Year Return: -.35% Inception -to -Date Return: 10.17% Inception Date: 4 -1 -2009 Fixed Income $18,417,699 47.37% Investment Summary Since Inception Beginning Value $ 566,683.26 Contributions 37,796,627.76 Withdrawals - 8,766,587.76 Gain (Loss) 3,948,066.31 Interest and Dividends 5,334,490.93 Net Accrued Income 43,576.51 Ending Market Value $ 38,922,857.071* Cash ..1 nA4 794 Equity $19,396,711 49.89% * Ending Market Value differs from total market value on page 3 due to differences in reporting methodology. The above ending market value is reported as of trade date and includes accruals. The Asset Allocation total market value is reported as of settlement date. JHIGHMARKe PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT ASSET ALLOCATION — Central Contra Costa Sanitary District As of Third Quarter 2015 Current Asset Allocation Investment Vehicle Equity 49.89% Range: 40%-60% 19, 396, 711 Large Cap Core 6.66% SMGIX Columbia Contrarian Core Cl Z 2,590,371 Large Cap Value 6.07% DODGX Dodge & Cox Stock Fund 2,360,182 6.04% LSGIX Loomis Sayles Value Fund 2,347,723 Large Cap Growth 3.51% HACAX Harbor Capital Appreciation Instl 1,366,100 3.51% PRGFX T. Rowe Price Growth Stock Fund 1,365,417 Mid Cap Value 2.29% TIMVX TIAA -CREF Mid -Cap Value Instl 890,536 Mid Cap Growth 1.29% IYMIX Ivy Mid Cap Growth Fund 1 501,118 Small Cap Value 4.47% NSVAX Columbia Small Cap Value Fund II 1,737,510 Small Cap Growth 2.57% PRNHX T. Rowe Price New Horizons Fund 998,434 International Core 3.68% NWHNX Nationwide Bailard Intl Equities Fund 1,431,829 International Value 1.90% DODFX Dodge & Cox International Stock Fund 739,329 International Growth 1.91% MQGIX MFS International Growth Fund 744,347 Tactical - Europe 2.83% FEZ SPDR EURO STOXX50 ETF 1,101,885 Emerging Markets 3.14% SEMNX Schroder Emerging Market Equity 1,221,929 Fixed Income 47.37% Range: 40 % -60% 18,417,699 Short -Term 5.82% VFSUX Vanguard Short-Term Corp Adm Fund 2,264,546 Intermediate -Term 20.02% NWJJX Nationwide HighMark Bond Fund 7,781,927 20.05% PTTRX PIMCO Total Return Instl Fund 7,794.057 High Yield 1.48% PHIYX PIMCO High Yield Instl 577,169 Cash 2.74% Range: 0%-20% 1, 064, 724 2.74% FPZXX Money Market 1,064,724 TOTAL 100.00% $38.879.134 J HIGHMARKk c. PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT Selected Period Performance PARS /CENTRAL CONTRA COSTA SANT PRHCP Account 6746030600 Period Ending: 09/30/2015 Account Inception: 4/2009 Returns are gross -of -fees unless otherwise noted. Returns for periods over one year are annualized. The information presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank guarantee, and may lose value. JHIGHMARK9 CAPITAL MANAGEMENT PARS: Central Contra Costa Sanitary District l_'J Year Inception 3 Months to Date 1 Year 3 Years 5 Years to Date Sector (9 Months) (78 Months) Cash Equivalents .01 .02 .03 .02 .02 .10 iMoneyNet, Inc. Taxable 01 01 .02 .02 02 03 Total Fixed Income .07 .41 1.33 1.54 3.02 5.23 BC US Aggregate Bd Index 1.23 1.13 2.94 1.71 3.10 4.49 Total Equities -8.71 -5.01 -2.76 10.26 10.34 15.11 Large Cap Funds -7.35 -3.99 -.11 12.89 12.41 15.83 S &P 500 Composite Index -6.44 -5.29 -,61 '2.40 13.34 16.91 Mid Cap Funds -9.93 -7.86 -2.18 9.85 10.94 Russell Midcap Index -8.01 -5.84 -.25 13.91 13.40 19.67 Small Cap Funds -8.13 -2.60 4.07 14.68 15.03 20.29 Russell 2000 Index -11.92 -7.73 1.25 11.02 11.73 17.43 International Equities -11.20 -7.29 -10.70 1.35 .80 9.37 MSCI SAFE Index -10.23 -5.28 -8.66 5.63 3.98 10.21 MSC/ EM Free Index -17.90 -15.47 -19.28 -5.27 -3.58 7.83 Total Managed Portfolio -4.02 -1.93 -.35 5.79 6.81 10.17 Account Inception: 4/2009 Returns are gross -of -fees unless otherwise noted. Returns for periods over one year are annualized. The information presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank guarantee, and may lose value. JHIGHMARK9 CAPITAL MANAGEMENT PARS: Central Contra Costa Sanitary District l_'J CENTRAL CONTRA COSTA SANITARY DISTRICT As of September 30, 2015 BOND FUNDS Fund Name 1 -Month Inception Return 3 -Month Return Year -to- Date 1 -Year Return 3 -Year Return 5 -Year Return 10 -Year Return Nationwide HighMark Bond Fid 0.46 0.46 1 -Month 3 -Month Year -to- 1 -Year 3 -Year 5 -Year 10 -Year Fund Name Inception Return Return Date Return Return Return Return Columbia Contrarian Core Cl Z (7/13) -3.41 -7.22 -4.43 0.05 13.74 14.35 8.94 Dodge & Cox Stock (8/14) -4.19 -9.84 -8.64 -6.62 13.39 13.03 5.53 Harbor Capital Appreciation Instl 3.10 -2.53 -5.44 2.68 6.03 15.35 15.06 8.16 Loomis Sayles Value Fund (7/11) -3.79 -9.47 -8.85 -5.37 11.74 12.30 6.92 T. Rowe Price Growth Stock -3.63 -4.71 2.08 6.47 15.24 15.19 8.73 S&P 500 Index -2.47 -6.44 -5.29 -0.61 12.40 13.34 6.80 Ivy Mid Cap Growth 1 (5/14) -4.18 -11.61 -8.56 -2.75 9.90 10.81 8.47 Russell Mid Cap Growth Index -3.86 -7.99 -4.15 1.45 13.98 13.58 8.09 TIAA -Cref Mid -Cap Value Instl (2/10) -3.45 -8.62 -7.52 -2.01 12.73 12.11 7.39 Russell Mid Cap Value Index -3.34 -8.04 -7.66 -2.07 13.69 13.15 7.42 Russell Mid Cap Index -3.60 -8.01 -5.84 -0.25 13.91 13.40 7.87 Columbia Small Cap Value II Z -2.78 -8.97 -5.09 1.33 12.91 12.62 7.22 T. Rowe Price New Horizons -4.02 -7.78 -0.62 6.32 15.98 18.10 10.46 Russell 2000 Index -4.91 -11.92 -7.73 1.25 11.02 11.73 6.55 INTERNATIONAL • Dodge & Cox Intl Stock -6.23 -15.38 -12.09 -16.19 6.62 4.06 4.21 Nationwide Bailard Intl Equities -3.96 -8.75 -3.18 -4.25 7.49 4.84 4.16 Schroder Emerging Market Equity (11/12) -1.62 -15.66 -13.19 -17.13 -4.66 -2.56 -- MFS International Growth 1 -2.35 -8.45 -3.33 -5.43 3.34 4.10 5.12 SPDR Euro Stoxx 50 ETF (6/14) -5.43 -9.09 -6.90 -12.64 6.25 1.90 1.60 MSCI EAFE Index -5.08 -10.23 -5.28 -8.66 5.63 3.98 2.97 MSCI Emerging Markets Index -3.01 -17.90 -15.47 -19.28 -5.27 -3.58 4.27 BOND FUNDS Fund Name 1 -Month Inception Return 3 -Month Return Year -to- Date 1 -Year Return 3 -Year Return 5 -Year Return 10 -Year Return Nationwide HighMark Bond Fid 0.46 0.46 0.71 1.88 1.72 3.35 4.83 Pimco Total Return Inst'l -0.47 -0.09 0.25 1.58 1.36 3.23 5.76 Vanguard Short -Term Investment -Grade Adm 0.46 0.44 1.41 1.63 1.64 2.18 3.68 PIMCO High Yield Insti (11/14) -2.79 -3.50 -1.37 -0.96 3.61 5.65 6.36 BarCap US Aggregate Bond 0.68 1.23 1.13 2.94 1.71 3.10 4.64 Credit Suisse HY -2.50 -5.17 -2.42 -3.96 3.30 5.93 6.89 HIGHMARK(g PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT .: HIGH��IIARK`" CAPITAL MANAGEMENT October 15, 2015 Thea Vassallo Finance Manager Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 -4392 RE: P Quarter OPEB Report Dear Thea, The third quarter started with concern over economic conditions in Greece, which faded once a deal was reached and a technical default was avoided. Prime Minister Tsipiras and his Syriza party were re- elected and essentially gave up on the prior strategy of playing hardball with the 'troika" of the International Monetary Fund, the European Central Bank, and the European commission. As we write this note in October, the problems in Greece seem like they occurred ages ago. The market quickly turned its focus from Greece to China, to the Fed, in a quarter that saw high levels of volatility, mainly on the down side. The stock market slide was fueled by two catalysts: China and the Federal Reserve. China announced on August 8 plans to devalue their currency. This was viewed as a negative by financial markets, indicating a slowdown in Chinese economic growth. Chinese policy responses to their declining stock market have consisted of restrictions on security sales, censoring media coverage of the equity market decline, and devaluation of their currency, all with marginal results. As a major driver of global economic growth, China is viewed as a vital source of demand for commodity - producing nations and corporations looking to market their products to a growing middle class. Given that China is the world second largest economy, a slowdown in growth will have a negative global impact. The problems in emerging markets have not been isolated to China. Brazil and Russia also appear to be in recessions, as both nations have been struggling to regain economic traction. Russia has been negatively impacted by the plunge in oil prices, while Brazil has struggled with political instability and a rising rate of inflation, coupled with a stagnant economy. The other event, or non -event depending on how you look at it, related to the Federal Reserve, and their decision on interest rate normalization. On the heels of several strong employment announcements, as well as a strong second quarter GDP print of 3.9 %, most investors began to anticipate that the Federal Reserve might initiate a rate hike in the third quarter. These beliefs were somewhat supported by several speeches throughout the quarter from Fed members who gave indications that a rate hike was on the table. However, in a press conference on September 17, Chairperson Janet Yellen spoke with a dovish tone, and stocks slumped in reaction. One possible explanation for the negative reaction, immediately following the Fed's decision not to raise rates, is that investors viewed the policy decision as an indication that the U.S. economy may be more vulnerable than assumed. With the Fed's apparent'about face' on raising rates, inaction served to express more concern about the economy than what was priced into the market. Performance Review The Central Contra Costa Sanitary District PRHCP Plan returned -4.02% for the quarter. The fixed income investments posted a 0.07% return, which underperformed the Barclays Aggregate return of 1.23 %. The fixed income segment was negatively impacted on several fronts. First of C5) all, our duration position was tilted to a shorter -than benchmark position, with our allocation to the Vanguard Short-Term Corporate Bond Fund. This Fund returned +0.44% in the quarter, which underperformed the benchmark. Secondly, our two intermediate -term fixed income managers also underperformed due less duration exposure. The Pimco Total Return Bond Fund's return of -0.09% was hampered by both short duration, and a position in emerging market bonds. Much like emerging market equities, emerging market debt struggled in the third quarter. Finally, while the allocation was modest at 1.5% of Plan assets, the Pimco High Yield Fund return of -3.5% detracted from the fixed income investment returns, as high yield bonds sold off. The equity segment of the portfolio returned -8.71% in the third quarter. There were no 'safe havens' in the quarter for stocks, with the S &P500 declining - 6.44 %, the Russell Mid Cap Index declining -8.01, and both small cap and international equity indices experiencing double digit declines of -12% and -10 %, respectively. This was the largest quarterly decline in over three years for the S &P500, with only one sector, utilities ( +5.4 %), able to show any gains in the period. Significant areas of weakness were felt in the energy (- 17.4 %), materials (- 16.9 %), and health care (- 10.7 %) sectors. Emerging markets (3% of Plan assets) represented the largest declines in the quarter with the MSCI Emerging Market Index off - 17.9 %. Brazil (- 33.6 %), China (- 22.7 %), and Russia (- 14.8 %) were the largest detractors from performance. Strategy Positioning In August, as the equity market sold off, we moved the equity allocation from an underweight allocation in stocks, to a neutral allocation, effectively moving from a 48% target to a 50% target. Additionally, we implemented a style tilt in our investment portfolios, by overweighting value vs. growth equities across all market capitalization. Over the past year, growth equities have outpaced value stocks by a considerable margin. Growth - oriented sectors such as technology, bio -tech, and health care, have posted strong gains. On the other hand, the value- oriented sectors such as the financials, energy, and basic materials have lagged considerably. We view valuations as more compelling in 'value' oriented indices, and we believe investors' attention will eventually revert back to value names as the cycle continues. While international markets have disappointed over the past year, we continue to maintain our slight overweight to international equity markets, with a current target of 14% of Plan assets. While some of the weakness in international markets can be attributed to weakness in China, Europe and Japan should continue to benefit from supportive central bank monetary policies that will likely support equity returns. Some of the negative contribution from international equity markets has stemmed from the stronger dollar /weaker foreign currencies. If the Fed decides to hold off on raising rates, we could see a strong snap back in the fortunes of international equity markets. Our current asset allocation target for the Plan is 50% stocks, 47.5% bonds, and 2.5% in cash. Best regards, Andrew Brown 4. (parr 20) PARS: Central Contra Costa Sanitary District November 24, 2015 Presented by Andrew Brown, CFA ,�HIGHMARKR CAPITAL MANAGEMENT DISCUSSION HIGHLIGHTS CCCSD Asset Allocation: Moderate HighMark Plus (November 2015) • Allocation Target — 50% stocks (40 - 60% range), 47.75% bonds (40 - 60% range), 2.25% cash (0 - 20% range) • Large cap 25 %, mid -cap 3.5 %, small cap 7 %, international 13.5% real estate 1 % Performance: Central Contra Costa Sanitary District (as of 10 -31 -2015) Net of fund fees, gross of investment management fees • Quarter -1.33% • Year to date: 1.83% • 1 -Year: 2.34% • Inception to date 10.66% (April 2009) • Bonds — Short duration a negative over the last 12 months • Stocks • Domestic markets - 72 MPH in a 65 zone • Large cap performing better, growth stocks outperforming. • Mid cap and small cap — mixed performance • International markets — Emerging markets hurting 1 12 -Month Changes • Sold Sentinel Common Stock Fund (May) • Overweight to Value (August) • Equal weight to stocks (August) • Real Estate —October addition Watch List • Pimco High Yield, Pimco Total Return, Ivy Mid Cap Growth, MFS International Outlook 2016 • The Fed — Spotlight on Dec. rate hike • Oil impacts earnings, boost to consumer • International — China growth uncertainty • GDP est. 2.25% in 2015, 2.9% in 2016 • Unemployment 5.1%,4.9% in 2016 • Fed Funds 0.5 %, 1 % in 2016 _�HIGHMARKe CAPITAL MANAGEMENT 2 Selected Period Performance PARS /CENTRAL CONTRA COSTA SANT PRHCP Account6746030600 Period Ending: 10/31/2015 Account Inception: 4/2009 Returns are gross -of -fees unless otherwise noted. Returns for periods over one year are annualized. The information presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank guarantee, and may lose value. JHIGHMARK � CAPITAL MANAGEMENT PARS: Central Contra Costa Sanitary District 3 Year Inception to Date to Date Sector 1 Month 3 Months (10 Months) 1 Year 3 Years 5 Years (79 Months) Cash Equivalents .00 .01 .03 .03 .02 .02 .10 VoneyNet. Inc. Taxable 00 01 02 02 .02 02 03 Total Fixed Income .55 -.15 .96 1.21 1.57 2.99 5.25 BC US Aggregate Bd Index 02 .55 1.14 1.96 1.65 3.03 4.43 Total Equities 7.18 -3.43 1.81 2.57 13.39 11.09 16.12 Large Cap Funds 8.15 -2.26 3.84 5.70 16.55 13.41 17.00 S &P 500 Composite Index o 44 - 63 2.70 5.20 16.20 14.33 18.13 Mid Cap Funds 5.10 -4.91 -3.16 -.05 12.14 11.25 Russell Midcap index 6.20 -3.03 -.01 2.77 16.61 13.91 20.49 Small Cap Funds 5.76 -3.74 3.01 4.86 17.69 15.37 21.03 Russell 2000 Index 5.63 -5.86 -2.53 .34 13.90 12.06 18.17 International Equities 6.79 -4.94 -1.00 -3.76 3.73 1.43 10.34 MSCI EAFE Index 7.82 -5.19 2.13 -.07 8.02 4.81 11.34 MSCI EM Free Index 7.13 -5.49 4 45 -14.53 -2.87 -2.80 8.86 Total Managed Portfolio 3.83 -1.33 1.83 2.34 7.31 7.13 10.66 Account Inception: 4/2009 Returns are gross -of -fees unless otherwise noted. Returns for periods over one year are annualized. The information presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank guarantee, and may lose value. JHIGHMARK � CAPITAL MANAGEMENT PARS: Central Contra Costa Sanitary District 3 ASSET ALLOCATION — Central Contra Costa Sanitary District As of October 31, 2015 Current Asset Allocation Investment Vehicle Equity 50.79% Range: 40 %-60% 20, 609,172 Large Cap Core 6.01% SMGIX Columbia Contrarian Core Cl Z 2,436,906 Large Cap Value 6.28% DODGX Dodge & Cox Stock Fund 2,547,018 6.21% LSGIX Loomis Sayles Value Fund 2,521,123 Large Cap Growth 3.66% HACAX Harbor Capital Appreciation Instl 1,483,863 3.67% PRGFX T. Rowe Price Growth Stock Fund 1,490,037 Mid Cap Value 2.31% TIMVX TIAA -CREF Mid -Cap Value Instl 938,307 Mid Cap Growth 1.29% IYMIX Ivy Mid Cap Growth Fund 1 524,357 Small Cap Value 4.52% NSVAX Columbia Small Cap Value Fund 11 1,833,628 Small Cap Growth 2.61% PRNHX T. Rowe Price New Horizons Fund 1,059,933 International Core 3.70% NWHNX Nationwide Bailard Intl Equities Fund 1,501,373 International Value 1.88% DODFX Dodge & Cox International Stock Fund 764,568 International Growth 1.91% MQGIX MFS International Growth Fund 774,929 Tactical - Europe 2.82% FEZ SPDR EURO STOXX50 ETF 1,142,874 Emerging Markets 3.18% SEMNX Schroder Emerging Market Equity 1,292,361 Real Estate 0.73% FARCX Nuveen Real Estate Securities 1 297,896 Fixed Income 46.58% Range: 40Yo-60% 18,900,138 Short-Term 5.66% VFSUX Vanguard Short-Term Corp Adm Fund 2,298,448 Intermediate -Term 19.66% NWJJX Nationwide HighMark Bond Fund 7,977,573 19.76% PTTRX PIMCO Total Return Instl Fund 8,018,878 High Yield 1.49% PHIYX PIMCO High Yield Instl 605,239 Cash 2.64% Range: 0 %-20% 1,069,710 2.64% FPZXX Money Market 1,069,710 TOTAL 100.00% $40,579,020 JHIGHMARK` PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT Source: SEI Investments, Morningstar Investments Returns less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from sources believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value. HIGH�K� PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT • As of October 31, 2015 Dodge & Cox Intl Stock 7.75 -7.30 -5.27 -8.08 1JEWRGE CAP EQUITY FUNDS 4.68 5.27 Nationwide Bailard Intl Equities 5.99 -4.90 2.62 1 -Month 3 -Month Year -to- 1 -Year 3 -Year 5 -Year 10 -Year Fund Name Inception Return Return Date Return Return Return Return Columbia Contrarian Core Cl Z (7/13) 8.22 -1.06 3.42 5.93 17.35 15.10 10.00 Dodge & Cox Stock (8/14) 7.92 -3.79 -1.41 0.92 16.55 13.81 6.53 Harbor Capital Appreciation Instl 2.88 8.62 -1.51 11.53 12.16 20.25 15.79 9.00 Loomis Sayles Value Fund (7/11) 7.39 -3.90 -2.12 0.22 14.57 13.08 7.86 T. Rowe Price Growth Stock -2.87 9.13 -0.86 11.40 12.12 20.21 16.03 9.73 S &P 500 Index 8.44 -0.63 2.70 5.20 16.20 14.33 7.85 MID CAP EQUITY FUNDS Ivy Mid Cap Growth I (5/14) 4.64 -6.90 -4.32 -0.97 11.99 11.10 9.02 Russell Mid Cap Growth Index 6.29 -3.76 1.89 4.94 17.22 14.10 9.08 TlAA -Cref Mid -Cap Value Instl (2/10) 5.36 -3.48 -2.56 0.27 14.78 12.51 8.34 Russell Mid Cap Value Index 6.10 -2.29 -2.02 0.47 15.92 13.64 8.39 Russell Mid Cap Index 6.20 -3.03 -0.01 2.77 16.61 13.91 8.85 SMALL CAP EQUITY FUNDS Columbia Small Cap Value II Z 5.53 -3.77 0.16 1.50 15.37 12.90 8.06 T. Rowe Price New Horizons 6.16 -4.05 5.50 7.93 19.85 18.54 11.50 Russell 2000 Index 5.63 -5.86 -2.53 0.34 13.90 12.06 7.47 REAL ESTATE FUNDS Nuveen Real Estate Securities 1 6.25 2.94 2.05 5.81 11.88 12.28 9.24 Source: SEI Investments, Morningstar Investments Returns less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from sources believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value. HIGH�K� PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT INTERNATIONAL • Dodge & Cox Intl Stock 7.75 -7.30 -5.27 -8.08 8.75 4.68 5.27 Nationwide Bailard Intl Equities 5.99 -4.90 2.62 1.74 9.16 5.12 5.09 Schroder Emerging Market Equity (11/12) 5.76 -4.78 -8.18 -12.88 -2.74 -1.95 - MFS International Growth 1 7.08 -3.78 3.51 1.39 5.68 4.72 6.16 SPDR Euro Stoxx 50 ETF (6/14) 9.18 -4.84 1.65 -0.46 8.38 2.61 2.88 MSCI EAFE Index 7.82 -5.19 2.13 -0.07 8.02 4.81 4.05 MSCI Emerging Markets Index 7.13 -5.49 -9.45 -14.53 -2.87 -2.80 5.70 Source: SEI Investments, Morningstar Investments Returns less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from sources believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value. HIGH�K� PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT As of October 31, 2015 BOND FUNDS Source: SEI Investments, Morningstar Investments Returns less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from sources believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value. 0 JHIGHMARK PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT 1 -Month 3 -Month Year -to- 1 -Year 3 -Year 5 -Year 10 -Year Fund Name Inception Return Return Date Return Return Return Return Nationwide HighMark Bond Fid 0.28 0.37 0.99 1.42 1.61 3.32 4.92 Pimco Total Return Inst'I 0.76 -0.54 1.01 1.53 1.49 3.17 5.94 Vanguard Short-Term Investment -Grade Adm 0.09 0.36 1.50 1.37 1.58 2.08 3.69 PIMCO High Yield Instl (11/14) 3.26 -0.84 1.84 0.28 4.44 5.86 6.78 BarCap US Aggregate Bond 0.02 0.55 1.14 1.96 1.65 3.03 4.72 Credit Suisse HY 2.56 -2.05 0.08 -2.43 3.88 5.97 7.26 Source: SEI Investments, Morningstar Investments Returns less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from sources believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value. 0 JHIGHMARK PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT