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HomeMy WebLinkAbout04. HighMark Capital Management GASB 45 reportPARS: Central Contra Costa Sanitary District May 31, 2016 Presented by Andrew Brown, CFA ,A4HIGHMARK® CAPITAL MANAGEMENT 4. DISCUSSION HIGHLIGHTS - CCCSD Investment objective — Moderate HighMark Plus Asset Allocation June 2016 Allocation Target — 48.5% stocks (40-60% range), 48.5% bonds (40-60% range), 3% cash (0-20% range) Large cap 23.25%, mid -cap 3.5%, small cap 9%, international 11.25%, real estate 1.5% Performance (as of 5-31-2016) gross of investment management fees, net of fund fees 3 -months: 5.94% Year to date: 2.04% 1 -Year -0.89% Since Inception (4/1/2009) 9.83% Bonds — Short duration a slight negative, Stocks GrowthNalue performance spread narrowed International still behind US — Divergent growth and monetary policy trends 12 -Month Changes Sold FEZ — Euro Stoxx 50 ETF Real Estate — REIT ETF Eliminated two Mid -cap funds Added Prudential Total Return Fund Sold High Yield — Pimco High Yield Bond Fund Overweight to Value Outlook 2016 Continue focus on the FED and monetary policy - Fed Funds Rate Rise in July/Sept? Oil rebound, Where from here? International economic fears — China, Commodities, Europe, UK EU exit Market volatility will continue — Portfolio positioned accordingly 4HIGHMARK® CAPITAL MANAGEMENT CCCSD Asset Allocation Total Assets: $42,333,542 Period Ending 5-31-16 YTD Return: 2.04% 1 Year Return: -0.89% Inception -to -Date Return: 9.83% Inception Date: 4-1-2009 Cash $1,452,875 3.43% Beginning Value $ 566,683.26 Contributions 39,571,525.30 Withdrawals -8,869,309.01 Gain (Loss) 3,484,166.62 Interest and Dividends 7,534,966.36 Net Accrued Income 45,844.11 Ending Market Value $ 42,333,876.64* ti 1t Axed Income J • $20,441,831 48.29% Equity $20,438,837 4828% Ending Market Value differs from total market value on page 5 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. HIGHMARK° CAPITAL MANAGEMENT PARS: Central Contra Costa Sanitary District 3 Selected Period Performance PARS/CENTRAL CONTRA COSTA SANT PRHCP Account 6746030600 Period Ending: 05/31/2016 Sector Cash Equivalents iMoneyNer, Inc. Taxable Total Fixed Income BC US Aggregate Bd Index Total Equities Large Cap Funds ,Inosite Index Mid Cap Funds • uss riidcap Index Small Cap Funds Fiussef; 2000 index REIT Funds Wilshrre REIT Index Year Inception to Date to Date 3 Months (5 Months) 1 Year 3 Years 5 Years (86 Months) .08 .12 .15 .06 .04 .11 2.37 3.18 2.14 2.22 3.15 5.16 4.47 10.10 1.23 -4.45 7.39 7.83 14.55 10.06 1.17 -1.18 10.28 10.41 15.47 3.57 16.90 12.41 4.81 -5.06 7.30 7.79 5.02 19.08 10.64 1.82 -3.05 9.78 10.22 19.08 12.15 2.28 16.63 9.46 4.44 9.48 4.32 10.40 10.65 10.32 24.07 International Equities 9.03 -.43 -11.43 -.20 -.90 8.77 MSC! EAFE Index 8.59 -1.10 -9.68 1.99 2.12 9.75 MSCI EM Free Index 9.60 2.32 -17.63 -4.95 -4.83 7.52 Total Managed Portfolio 5.94 2.04 -.89 4.69 5.49 9.83 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. 4HIGHMARK® CAPITAL MANAGEMENT PARS: Central Contra Costa Sanitary District 4 (Current Asset Allocation Investment Vehicle ASSET ALLOCATION - Central Contra Costa Sanitary District As of May 31, 2016 Equity 48.28% Range: 40%-60% 20, 438, 837 Large Cap Core 5.54% SMGIX Columbia Contrarian Core CI Z 2,344,922 Large Cap Value 5.78% DODGX Dodge & Cox Stock Fund 2,446,470 5.67% LSGIX Loomis Sayles Value Fund 2,398,718 Large Cap Growth 3.37% HACAX Harbor Capital Appreciation Instl 1,428,184 3.34% PRGFX T. Rowe Price Growth Stock Fund 1,414,415 Mid Cap Core 2.61% IWR iShares Russell Mid -Cap ETF 1,106,686 Mid Cap Value 1.00% IWS iShares Russell MidCap Value Fund 425,329 Small Cap Value 5.57% NSVAX Columbia Small Cap Value Fund II 2,357,577 Small Cap Growth 3.47% PRNHX T. Rowe Price New Horizons Fund 1,469,062 International Core 4.02% NWHNX Nationwide Bailard Intl Equities Fund 1,703,631 International Value 2.27% DODFX Dodge & Cox International Stock Fund 962,342 International Growth 2.23% MQGIX MFS International Growth Fund 942,396 Emerging Markets 2.67% SEMNX Schroder Emerging Market Equity 1,131,942 Real Estate 0.73% FARCX Nuveen Real Estate Securities I 307,164 Fixed Income 48.29% Range: 40%-60% 20,441,831 Short -Term 7.57% VFSUX Vanguard Short -Term Corp Adm Fund 3,206,761 Intermediate -Term 19.61% NWJJX Nationwide HighMark Bond Fund 8,300,419 9.82% PTTRX PIMCO Total Return Instl Fund 4,156,802 9.80% PTRQX Prudential Total Return Bond Q 4,147,385 High Yield 1.49% PHIYX PIMCO High Yield Instl 630,464 Cash 3.43% Range: 0%0-20% 1,452,875 3.43% FPZXX Money Market 1,452,875 TOTAL A HIGHMARK° CAPITAL MANAGEMENT 100.00% $42,333,542 PARS: Central Contra Costa Sanitary District 5 CENTRAL CONTRA COSTA SANITARY DISTRICT For Period Ending May 31, 2016 Fund Name Columbia Contrarian Core CI Z Dodge & Cox Stock Harbor Capital Appreciation Instl Loomis Sayles Value Fund T. Rowe Price Growth Stock S&P 500 Index iShares Russell Midcap Value Russell Mid Cap Value Index 'Shares Russell Midcap Index Russell Mid Cap Index Inception (7/13) (8/14) (7/11) (3/16) (3/16) LARGE CAP EQUITY FUNDS 1 -Month 3 -Month Return Return 2.16 9.51 2.29 11.81 2.63 8.46 2.00 11.32 2.11 7.46 1.80 9.12 Columbia Small Cap Value II Z T. Rowe Price New Horizons Russell 2000 Index INNIMEMIIIMargai Nuveen Real Estate Securities I 1.61 1.64 1.62 1.64 13.32 13.40 11.05 11.13 Year -to - Date 3.37 3.42 - 3.67 2.31 - 3.67 3.57 7.77 7.89 4.93 5.02 1 -Year 3 -Year 5 -Year 10 -Year Return Return Return Return 1.83 11.73 12.31 9.72 -3.93 9.27 10.50 5.42 -1.42 13.24 11.62 8.59 -3.94 7.95 9.70 6.55 -1.41 12.79 12.30 8.67 1.72 11.06 11.67 7.41 -0.51 -0.31 -2.12 -1.97 9.98 10.22 10.00 10.18 10.69 10.92 10.17 10.33 7.58 7.76 7.88 8.03 SMALL CAP EQUITY FUNDS 1.56 9.96 2.89 -3.93 7.73 8.18 6.54 2.60 11.66 -0.52 -3.31 11.25 12.54 10.22 2.25 12.15 2.28 -5.97 6.93 7.86 6.27 REAL EBTA1TFUNDS 2.45 9.46 4.41 10.16 10.21 10.01 8.27 INTERNATIONAL EQUITY FUNDS Dodge & Cox Intl Stock Nationwide Bailard Intl Equities Schroder Emerging Market Equity MFS International Growth I MSCI EAFE Index MSCI Emerging Markets Index Nationwide HighMark Bond Fid Pimco Total Return Inst'I Prudential Total Retum Bond Q Vanguard Short -Term Investment -Grade Adm PIMCO High Yield Instl BarCap US Aggregate Bond Credit Suisse HY (5/31) (11/14) -0.94 -0.79 -2.22 0.31 -0.91 -3.73 -0.27 0.27 0.03 0.01 0.22 0.03 0.77 12.21 7.53 9.97 8.46 8.59 9.60 BOND FUNDS 2.60 2.17 2.73 1.50 5.96 1.33 9.41 -1.26 -1.05 1.29 2.73 -1.10 2.32 4.05 2.51 4.29 2.23 5.51 3.45 7.92 -18.17 -7.99 -15.65 -5.19 -9.68 -17.63 2.63 2.00 2.84 2.09 -0.18 2.99 -1.67 0.52 4.04 -4.78 2.02 2.00 4.95 2.62 2.11 3.53 1.97 3.13 2.91 2.54 1.35 2.61 -4.31 2.28 2.12 -4.83 3.52 3.35 4.68 2.20 5.06 3.33 5.17 2.56 2.80 3.61 4.34 1.92 3.11 5.19 6.11 6.37 3.68 6.53 4.97 6.93 Source: SEI Investments, Morningstar Investments Retums less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value. J HIGHMt1RK® CAPITAL MANAGEMENT PARS: Central Contra Costa Sanitary District 6 HIGHMARK® CAPITAL MANAGEMENT April 26, 2016 Thea Vassallo Finance Manager Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553-4392 RE: 1st Quarter 2016 OPEB Report Dear Thea, 2016 started off with high anxiety as markets sold off, breaking recent lows from 2015. The factors underpinning the increased tension in global markets were reminiscent of the selloff in the third quarter of last year; U.S. tightening monetary policy, China economic transition, and the decline in global commodity prices. In February these catalysts reversed and risk assets surged on a stream of favorable economic data, a more accommodative stance from the U.S. and China, and a rally in energy prices. As the quarter came to an end, sentiment was split with creditable arguments for both a continued climb and a return to turmoil. These factors will lead to continued volatility through the year and warrant continual attention as events unfold. U.S. Equity markets started 2016 with one of the worst starts in history, dropping over 10% through February. However, by quarter end, U.S. stocks rallied back into positive territory for the year based on better than expected economic data and a surprise pause by the Fed from its interest rate normalization path. The outlook for future rate hikes continues to decline as the Fed seems to be moving towards market expectations. Gloom further dissipated as investors determined that a full-fledged recession was unlikely given a stream of positive economic data, especially employment related statistics. The equity market did however reverse a trend that dominated markets for years, the outperformance of growth stocks relative to value stocks. Within large cap, value outperformed growth by almost a full percent in the quarter. This relative performance was also seen in both mid cap and small cap markets, with the Russell Mid Cap Value Index outperforming the growth index by over 3.3%, and the Russell 2000 Value Index outperforming the growth index about 3%. One factor contributing to this trend is the outperformance of "bond like stocks," which refers to stocks that pay high and stable dividend yields, a characteristic more represented in value stocks. The Telecommunications and Utilities sectors outdistanced all sectors in the first quarter, with returns north of +15%. These sectors pay relatively high dividend yields due to the highly regulated nature of their industries and lack of opportunity for internal investment. Other positively performing sectors included Consumer Staples (+5.6%), Industrials (+5%), Technology (+2.6%), and Consumer Discretionary (+1.6%). Further, a rebound in oil prices and other commodities, led the Energy sector to deliver a return of over +4%, and materials to return over +3.6%. The largest detractors from returns were Financials (-5.1%) and Health Care (-5.5%). The low interest rate environment and regulatory burdens weighed heavily on the performance of these sectors. With the U.S. expansion now over 7 years old, signs of an aging bull market are becoming more apparent. One example is corporations inclination to take on higher debt levels, in order to buy back stock, and/or to pay for merger and acquisitions, in the face of weak organic growth. While signs of slowing growth are emerging, the dovish Fed has shown a willingness to support both the economic and financial markets at considerable cost. Performance Review The District's OPEB Plan returned 0.45% for the quarter. The fixed income investments posted a 2.42% return, which underperformed the Barclays Aggregate return of 3.03%. The Plan was negatively impacted on several fronts. One, 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 +1.76% in the quarter, which lagged the longer duration Barclays Aggregate Index. Secondly, the Pimco Total Return Bond Fund lagged benchmark targets due to the manager's allocation to high yield issues, currency exposure to the Yen and the Euro, and a duration target that was lower than that of the benchmark. Finally, while the high yield market posted returns in the black, the high yield sector failed to keep up with the Barclays Aggregate Index in the first quarter. The Pimco High Yield Fund return of +2.7% in the quarter. The equity segment of the portfolio returned -1.28% in the quarter. While small cap (-0.98%) and international equity (-1.31%) both outperformed their benchmark targets, both segments posted negative results. REITs, while underperforming the benchmark, posted the strongest returns for any segment in the Plan, returning 4.03% for the quarter. In the quarter, we terminated both of our mid -cap equity managers. Both managers had been struggling to outperform their benchmark targets, and we felt it would be best to move to a passively managed index fund for the mid -cap segment. For the quarter, the mid cap equity segment posted a +1.73%. The largest disappointment during the quarter came from the large cap equity segment, where all five of our managers underperformed the S&P500. With growth equities underperforming value stocks in the quarter, our two large cap growth managers posted returns way below that of the S&P500. The T. Rowe Price Growth Stock Fund returned -5.4%, and the Harbor Capital Appreciation Fund was off -5.5%. A decline in technology shares was a common denominator for both managers. An equal disappointment though was the performance from our two large cap value managers: Dodge & Cox Stock Fund (-0.99%) and Loomis Sayles Value Fund (-1.7%). Exposure to banking and financial stocks weighed heavily on both managers in the quarter, and a lack of exposure to the two strongest performing sectors: telecommunications and utilities hurt both managers. In August of 2015, we implemented a style tilt in our investment portfolios, by moving to an overweight to value vs. growth equities across all market capitalization. This has been rewarding in both the small cap and mid cap segments, since we made this adjustment. However, we state above that with respect to the first quarter, we were equally disappointed with the performance from our large cap value managers, whose performance declined by roughly -1.5%, when compared with the large cap growth managers who declined by roughly -5.5%. We feel we got the market direction correct by overweighting the large cap value sector, but the two managers who we invested in to convey that world view, did not have strong quarters. We anticipate stronger returns from our large cap value managers in the future. Strategy Positioning We remain slightly underweight to equity markets, with a 48% Plan allocation to stocks. We have a very slight underweight to bonds, maintaining a 49% Plan allocation to fixed income. Cash is currently at 3% Andrew Brown J H IGHMARK' CAPITAL MANAGEMENT PARS: Central Contra Costa Sanitary District First Quarter 2016 Presented by Andrew Brown, CFA CCCSD Asset Allocation Total Assets: $41,239,697 Period Ending 3-31-16 1Q16 Return: 0.45% 1 Year Return: -1.63% Inception -to -Date Return: 9.83% Inception Date: 4-1-2009 Fixed Income $20,111,374 48.77% Cash $1,381,740 3.35% Investment Summary Since Inception Beginning Value Contributions Withdrawals Gain (Loss) Interest and Dividends Net Accrued Income Ending Market Value Equity $19,746,582 47.88% $ 566,683.26 39,132,925.30 -8,822,467.38 2,918,093.56 7,442, 947.76 45, 359.68 $ 41,283,542.18* * 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. J HIGHMARK° CAPITAL MANAGEMENT PARS: Central Contra Costa Sanitary District 2 ASSET ALLOCATION — Central Contra Costa Sanitary District As of First Quarter 2016 Current Asset Allocation Investment Vehicle Equity Large Cap Core Large Cap Value Large Cap Growth Mid Cap Core Mid Cap Value Small Cap Value Small Cap Growth International Core International Value International Growth Tactical - Europe Emerging Markets Real Estate Fixed Income Short -Term Intermediate -Term High Yield Cash 47.88% 5.53% SMGIX 5.58% DODGX 5.59% LSGIX 3.36% HACAX 3.32% PRGFX 2.63% IWR 1.01% IWS 5.56% NSVAX 3.48% PRNHX 3.67% NWHNX 1.87% DODFX 1.90% MQGIX 1.93% FEZ 1.71% SEMNX 0.76% FARCX 48.77% 7.63% VFSUX 19.86% NWJJX 19.80% PTTRX 1.47% PHIYX 3.35% 3.35% FPZXX TOTAL 100.00% J H IGHMARK' CAPITAL MANAGEMENT Range: 40%-60% Columbia Contrarian Core CI Z Dodge & Cox Stock Fund Loomis Sayles Value Fund Harbor Capital Appreciation Instl T. Rowe Price Growth Stock Fund iShares Russell Mid -Cap ETF iShares Russell MidCap Value Fund Columbia Small Cap Value Fund 11 T. Rowe Price New Horizons Fund Nationwide Bailard Intl Equities Fund Dodge & Cox International Stock Fund MFS International Growth Fund SPDR EURO STOXX 50 ETF Schroder Emerging Market Equity Nuveen Real Estate Securities 1 Range: 40%-60% Vanguard Short -Term Corp Adm Fund Nationwide HighMark Bond Fund PIMCO Total Return Instl Fund PIMCO High Yield Instl Range: 0%-20% Money Market PARS: Central Contra Costa Sanitary District 19, 746, 582 2,279,594 2,300,152 2,304,148 1,384,379 1, 368,226 1,082,603 416,501 2,293,325 1,434,646 1,513,891 771,358 782,900 797,586 703,585 313,687 20,111,374 3,147, 836 8,192, 249 8,165,132 606,157 1,381,740 1,381,740 $41,239,697 3 Sector Cash Equivalents iMoneyNet. Inc. Taxable Selected Period Performance PARS/CENTRAL CONTRA COSTA SANT PRHCP Account 6746030600 Period Ending: 03/31/2016 Total Fixed Income BC US Aggregate Bd Index Total Equities Large Cap Funds S&P 500 Composite Index Mid Cap Funds Russell Midcap Index Small Cap Funds Russell 2000 Index REIT Funds Wilshire REIT Index Year Inception to Date to Date 3 Months (3 Months) 1 Year 3 Years 5 Years (7 Years) .07 .07 .10 .05 .04 .10 02 .02 .04 .02 .02 03 2.42 2.42 .93 1.78 3.41 5.18 3.03 3.03 1.96 2.50 3.78 4.52 -1.28 -1.28 -4.80 7.65 7.71 14.51 -1.98 -1.98 -1.67 10.65 10.06 15.34 1.35 1.35 1.78 11.82 11.58 16.97 1.73 1.73 -7.02 6.86 7.65 2.24 2 24 -4.04 10.45 10.30 19.12 -.95 -.95 -5.18 10.13 9.91 19.11 -1.52 -1.52 -9.76 6.84 7.20 16.42 4.03 4.03 5.20 5.20 4.76 11.07 12.11 24.86 International Equities -1.33 -1,33 -10.02 -.45 -.57 8.85 MSCI EA FE Index -3.01 -3.01 -8.27 2.23 2.29 9.69 MSCI EM Free Index 5.7 5,71 -12.03 -4.50 -4.13 8.21 Total Managed Portfolio .45 .45 -1.63 4.61 5.56 9.83 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 4 PARS/CENTRAL CONTRA COSTA SANITARY DISTRICT For Period Ending March 31, 2016 Fund Name Columbia Contrarian Core Z Dodge & Cox Stock Harbor Capital Appreciation Instl Looms Sayles Value Fund T. Rowe Rice Growth Stock Idx: Russell 1000 3 -Month YTD Inception Return Rank Return Rank (7/13) 0.62 45 0.62 45 (8/14) -0.99 82 -0.99 82 - 5.49 88 -5.49 88 (7/11) -1.66 90 -1.66 90 - 5.37 86 -5.37 86 1.17 -- 1.17 -- 1 -Year 3 -Year 5 -Year Return Rank Return Rank Return 2.42 8 12.54 4 12.22 - 4.29 64 9.51 25 10.14 -0.63 30 14.08 10 12.04 -5.42 74 8.00 57 9.00 - 1.07 35 13.84 11 12.21 0.50 -- 11.52 -- 11.35 Rank 4 22 11 46 9 MID CAP EQUITY FUNDS iShares Russell Mid -Cap Value Idx: Russell Mid Cap Value iShares Russell Mid -Cap (3/16) 3.86 -- 3.86 -3.56 9.65 -- 10.29 3.92 3.92 -3.39 9.88 -- 10.52 2.21 2.21 -4.17 -- 10.27 -- 10.14 (3/16) SMALL CAP EQUITY FUNDS Columbia Small Cap Value II Z Idx: Russell 2000 Value T. Rowe Rice New Horizons Idx: Russell 2000 Growth 0.66 70 0.66 70 1.70 -- 1.70 -- -4.10 45 -4.10 45 -4.68 -- -4.68 -- -5.96 37 7.93 21 7.86 -7.72 -- 5.73 -- 6.67 -5.81 13 11.81 2 12.25 -11.84 -- 7.91 -- 7.70 22 1 INTERNATIONAL EQUITY FUNDS Dodge & Cox International Stock Nationw ide Bailard Intl Eqs InSvc MFS International Growth 1 Idx: MSCI EAFE Schroder Emerging Market Equity Idx: MSCI Emerging Markets SFDR EURO STOXX 50 ETF (6/14) -3.76 83 -3.76 83 -2.09 46 -2.09 46 1.54 4 1.54 4 -3.01 -- -3.01 -- 3.03 58 3.03 58 5.71 -- 5.71 -- -3.27 62 -3.27 62 -18.12 100 1.34 61 1.36 -5.50 23 4.05 10 3.21 -3.10 24 1.79 67 3.09 -8.27 -- 2.23 -- 2.29 -12.61 64 -4.84 52 -3.79 -12.03 -- -4.50 -- -4.13 -11.40 75 3.59 67 -0.28 Data Source: Morningstar, SB Investments Returns less than one year are not annualized Past performance is not indicative of future returns. The information presented has been obtained from sources believed accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value. JHIGHMARK€ CAPITAL MANAGEMENT PARS: Central Contra Costa Sanitary District 59 16 43 47 100 5 PARS/CENTRAL CONTRA COSTA SANITARY DISTRICT For Period Ending March 31, 2016 REIT EQUITY FUNDS 3 -Month YTD 1 -Year 3 -Year 5 -Year Fund Name Inception Return Rank Return Rank Return Rank Return Rank Return Rank Nuveen Real Estate Secs Y (10/15) 4.76 55 4.76 55 4.07 30 10.53 29 11.60 22 Idx: Wilshire REIT Index 5.20 -- 5.20 -- 4.76 -- 11.07 -- 12.11 -- Pimco Total Return Inst'I 1.79 88 1.79 88 0.31 69 1.53 72 3.66 45 Vanguard Short -Term Investment -Grade Adm 1.76 8 1.76 8 1.86 2 1.79 4 2.36 13 Nationwide HighMark Bond InSvc 3.31 5 3.31 5 1.52 23 2.19 36 3.82 35 BarCap US Aggregate Bond 3.03 -- 3.03 -- 1.96 -- 2.50 -- 3.78 -- PIMCO High Yield Instl (11/14) 2.71 28 2.71 28 -1.61 20 2.52 16 4.89 17 Credit Suisse HY 3.11 -- 3.11 -- -4.46 -- 1.42 -- 4.59 -- Data Source: Morningstar, SEI Investments Returns less than one year are not annualized. Past performance is not indicative of future returns. The information presented has been obtained from sources believed accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value. H IGHMARK' CAPITAL MANAGEMENT PARS: Central Contra Costa Sanitary District 6