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Home My WebLink About05.a. Review and provide input on Highmark Capital Management Government Accounting Standards Board (GASB 45) Other Post-Employment Benefits (OPEB) and Pension sub-trust Quarterly Report Page 1 of 25 Item 5.a. Central Contra Costa Sanitary District February 27, 2018 TO: FINANCE COMMITTEE FROM: THEA VASSALLO, FINANCE MANAGER REVIEWED BY: PHILIP R. LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION ANN SASAKI, DEPUTY GENERAL MANAGER ROGER S. BAILEY, GENERAL MANAGER SUBJECT: REVIEW AND PROVIDE INPUT ON HIGHMARK CAPITAL MANAGEMENT GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB 45) OTHER POST-EMPLOYMENT BENEFITS (OPEB)AND PENSION SUB-TRUST QUARTERLY REPORT (FOURTH QUARTER 2017) Attached for review is the most recent Highmark overview and GASB 45 OPEB/Pension Sub-trust Report. Strategic Plan Tie-In GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility Strategy 1 - Conduct Long-Range Financial Planning ATTACHMENTS: 1. Highmark OPEB/Pension Report 4th Quarter-Cover Letter 2. Highmark Overview OPEB/Pension Report 4th Quarter February 27, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 108 of 189 Page 2 of 25 JHIGHMARK@ CAPITAL MANAGEMENT January 31, 2018 Thea Vassallo Finance Manager Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553-4392 RE: 4th quarter 2017 OPEB/Pension Report Dear Thea, The S&P 500 broke records regularly in 2017 by a number of measures: the index posted a positive return for all twelve months of the year; the number of consecutive days without a 3% drawdown reached a high of 289 trading days at year-end; and historically low readings on expected volatility with the VIX Index dropping to a record low of 8.56 on November 24, 2017. After climbing 21.8% last year, the S&P 500's return, including dividends, has delivered an annualized rate of 7.8% since the pre-crisis peak of October 9, 2007. A host of positive circumstances fed bullish sentiment steadily throughout the year. The carrot that led the way came from tax reform legislation, which finally came to fruition as the year closed out. The GOP's determined efforts to rollback regulations also kept equity investors optimistic. A friendly political climate for business coinciding with a corporate earnings recovery, low interest rates, and strengthening global economic growth, helped to sustain enthusiasm. This put concerns that more typically would have dampened market appetite -- climbing equity valuations, a hawkish central bank, and geopolitical tensions--on the back burner. International equity markets, both developed and emerging, also enjoyed healthy returns as political stability prevailed and economic activity ramped up overseas. Aggressive quantitative easing has been bearing fruit in Europe and Japan, where concerns about deflation are beginning to subside and economic growth has surpassed expectations. A recovery in the demand for natural resources, partially driven by renewed growth prospects in China, led emerging market stocks to their highest return since 2009. U.S. investors in foreign equities also benefited from a weakening dollar with the Bloomberg Dollar Index declining 10.4% in 2017. Despite last year's strong performance, foreign stock indices in U.S. dollar terms have yet to best pre-crisis peaks. Much of the relative underperformance versus U.S. stocks over the past decade stems from an expansionary economic cycle that has been far more robust domestically compared to elsewhere in the global economy. 2017 was the first year since 2012 that the MSCI EAFE or MSCI Emerging Markets indices outperformed the S&P 500. This may indicate a change in narrative as renewed growth prospects overseas and cheaper valuations are attracting investor attention. Economic Highlights U.S. Growth: The U.S. economy grew by an annualized 3.2% in the third quarter, marking the second consecutive quarter in which domestic growth topped 3% —a feat not achieved since 2014. Acceleration in business spending offset the drag from a series of natural disasters. Early estimates for fourth quarter GDP growth indicate a continuation of the momentum. February 27, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 109 of 189 Page 3 of 25 Global Growth: After experiencing the weakest growth since the global financial crisis in 2016 (+3.2%), the International Monetary Fund (IMF) expects the global economy to grow by 3.6% in 2017 and 3.7% in 2018. Employment: Unemployment remained at a 17-year low of 4.1%, adding an average of over 200,000 jobs per month during the fourth quarter. Despite a tight labor market, average hourly earnings grew by a relatively modest 2.5% in 2017. Inflation: Aided by rising energy prices, headline Consumer Price Index (CPI) rose 2.2% over the 12-month period through November. However, the Fed's preferred measure of inflation, which excludes food and energy, remains below its stated 2% target with a reading of 1.5% in November. Energy: Oil prices continued to climb steadily during the fourth quarter after hitting a 12-month low in June. Spot West Texas Intermediate (WTI)traded at$59.55 per barrel at the end of 2017. Despite higher crude prices, gasoline was slightly cheaper in the fourth quarter as refining capacity came back online following storm damage. AAA's national average gasoline price was $2.49 at year end, compared to $2.56 at the end of the third quarter. Housing: U.S. home prices continued to appreciate amid shrinking inventory and mortgage rates still hovered near historic lows. The S&P CoreLogic Case-Shiller National Home Price Index rose 6.2% for the one-year period ending October 31, 2017. Corporate Earnings: According to FactSet, S&P 500 earnings grew by 6.3% in the third quarter. For the full year, earnings are expected to grow by 9.6% in 2017 and 11.8% in 2018. If final results for the fourth quarter come in as expected or better, 2017 will be the strongest year for U.S corporate earnings growth since 2011. At its core, the tranquility and prosperity of financial markets in 2017 was a manifestation of market friendly policies acting as a tailwind to building momentum in the global economy. Entering 2018, the impact of outgoing monetary stimulus and incoming fiscal stimulus will remain in focus domestically. While no equivalent historical comparisons exist for this type of environment, we expect that a slow moving Fed, combined with tax cuts, will further extend what is already one of the longest expansion cycles in modern economic history. Meanwhile, many foreign economies find themselves in less mature stages of an expansion cycle, leaving even more room to grow, as accommodative monetary policy is perpetuated. The Central Contra Costa Sanitary District OPEB Plan returned 3.15% for the quarter, gross of investment fees, which slightly exceeded the District's Plan benchmark target of 2.95%. The Plan's equities drove investment returns posting a 5.75% return. Equities registered strong gains in the quarter, capping off a solid year for stocks. From a relative standpoint, small cap equities had the strongest performance vs. the benchmark with the Plan's small cap stocks returning 5.20% vs. the Russell 2000 Index return of 3.34%. The Plan's investments in large cap (+6.75%), mid cap (6.03%), and fixed income (+0.41%)where in-line with market benchmark averages. Emerging Market equities led returns, with a 7.4% return for the MSCI-Emerging Market Index, this supported Plan returns in the international equity segment. REIT returns were disappointing, coming in at 1.37% for the quarter. REITs are still facing the headwinds of slower earnings and rising interest rates. The Central Contra Costa Sanitary District Pension Plan returned 1.74% for the quarter, gross of investment fees, which slightly trailed the District's Plan benchmark target of 1.87%. Performance contributions from the various asset class segments were similar to the OPEB Plan, with small cap equity providing the largest positive contribution, and most other asset class returns offering returns in-line with benchmark targets. February 27, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 110 of 189 Page 4 of 25 From an asset allocation standpoint, we ended the quarter with a slight overweight to equities in the OPEB Plan, targeting a 51% level, and a corresponding bond/cash allocation of 49%. The Pension Plan maintained a similar slight overweight to equities targeting a 31% level. In light of the tax reform package, we are reviewing our neutral stance to equities. Earnings estimates for S&P500 companies have been revised upwards in anticipation of both lower corporate tax rates, and an anticipation of accelerated economic growth. Andrew Brown February 27, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 111 of 189 PARS: Central Contra Costa Sanitary District OPEB and Pension Plan Fourth Quarter 2017 Presented by Andrew Brown, CFA JHIGHMARKO CAPITAL MANAGEMENT Investment Summary Since Inception CCCSD — OPEB Beginning Value $ 566,683.26 Asset Allocation Contributions 99,972,686.32 Withdrawals -63,590,270.94 Total Assets: $56,142,639 Gain (Loss) 9,067,855.15 Interest and Dividends 10,125,707.61 Period Ending 12-31-2017 Net Accrued Income 88,111.23 4Q17 Return: 3.15% Ending Market Value $ 56,230,772.63- 1 Year Return: 13.06% Inception-to-Date Return: 10.01% Inception Date:4-1-2009 Cash $ 1,244,850 2.22% Equity $28,902,170 51.48% l Fixed Income $25,995,619 46.30% * Ending Market Value differs from total market value on page 3 due to differences in reporting methodology. The above ending market value includes accruals. JHIGHMARK PARS: Central Contra Costa Sanitary District 2 CAPITAL MANAGEMENT Asset Allocation — Central Contra Costa Sanitary District OPEB As of Fourth Quarter 2017 Current Asset Allocation Investment Vehicle Equity 51.48% Range: 40%-60% 28,902,170 Large Cap Core 10.96% IVV iShares S&P 500 Index Fund 6,155,858 4.24% VGIAX Vanguard Growth & Income Adm 2,378,002 Large Cap Value 6.98% IVE iShares S&P 500 Value Fund 3,920,717 Large Cap Growth 3.98% IVW iShares S&P 500 Growth Fund 2,236,247 Mid Cap Core 3.98% IWR iShares Russell MidCap Index Fund 2,236,149 Small Cap Value 4.98% UBVLX Undiscovered Mgrs Behavioral Value Inst 2,794,332 Small Cap Growth 2.99% PRJIX T. Rowe Price New Horizons Fund 1 1,679,983 International Core 3.78% NWHMX Nationwide Bailard Intl Equities 1 2,122,139 International Value 2.26% DODFX Dodge & Cox International Stock Fund 1,268,750 International Growth 2.27% MGRDX MFS® International Growth Fund Class R6 1,273,974 Emerging Markets 3.55% HHHYX Hartford Schroders Emerging Mkts Eq Y 1,991,200 Real Estate 1.50% VNQ Vanguard REIT ETF 844,819 Fixed Income 46.30% Range: 40%-60% 25,995,619 16.16% Core Fixed Income Portfolio 9,070,354 Short-Term 6.01% VFSUX Vanguard Short-Term Corp Adm Fund 3,374,934 Intermediate-Term 12.06% PTTRX PIMCO Total Return Instl Fund 6,772,242 12.07% PTRQX Prudential Total Return Bond Q 6,778,063 0.00% NWJIX Nationwide Loomis Core Bond R6 16 Floating Rate Notes 0.00% EIFHX Eaton Vance Floating-Rate and Hi Inc 1 9 Cash 2.22% Range: 0%-20% 1,244,850 2.22% FGZXX First American Government Oblig Z 1,244,850 TOTAL 100.00% $56,142,639 JHIGHMARK PARS: Central Contra Costa Sanitary District 3 CAPITAL MANAGEMENT Selected Period Performance CCCSD - OPEB Period Ending: 12/31/2017 Year Inception to Date to Date Sector 3 Months (1 Year) 1 Year 3 Years 5 Years (105 Months) Cash Equivalents .24 .75 .75 .35 .22 .19 Lipper Money Market Funds Index .22 .66 .66 .27 .16 .11 Fixed Income ex Funds .28 Total Fixed Income .41 4.20 4.20 2.52 2.15 4.70 BC US Aggregate Bd Index .39 3.54 3.54 2.24 2.10 3.97 Total Equities 5.75 22.68 22.68 10.15 13.15 15.44 Large Cap Funds 6.75 21.77 21.77 11.06 15.32 16.16 S&P 500 Composite Index 6.64 21.83 21.83 11.41 15.79 17.27 Mid Cap Funds 6.03 17.08 17.08 8.15 12.37 Russell Midcap Index 6.07 18.52 18.52 9.58 14.96 18.72 Small Cap Funds 5.20 20.68 20.68 11.88 16.35 19.57 Russell 2000 Index 3.34 14.65 14.65 9.96 14.12 17.48 International Equities 4.54 29.93 29.93 8.40 6.22 10.83 MSCI EAFE Index 4.23 25.03 25.03 7.80 7.90 10.97 MSCI EM Free Index 7.44 37.28 37.28 9.10 4.35 11.08 Real Estate - ETFs / Sctr Fds 1.37 Wilshire REIT Index 1.70 4.18 4.18 5.21 9.35 20.26 Total Managed Portfolio 3.15 13.06 13.06 6.38 7.47 10.01 CCCSD OPEB 2.95 11.66 11.66 6.20 7.69 Account Inception:4/2009 CCCSD OPEB Benchmark consists of: 26.5%of S&P 500, 5% Russell Midcap,7.5%Russell 2000, 1.75%Wilshire REIT,3.25% MSCI EM Free,6%MSCI EAFE,33.5%BC Aggregate, 10%ML 1-3 Yr US Corp/Govt, 1.5%ML US High Yield Mstr II,and 5%Citigroup 1 Month T-Bill Indexes., 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® PARS: Central Contra Costa Sanitary District 4 CAPITAL MANAGEMENT Fixed Income Portfolio: Statistics As of Fourth Quarter 2017 CCCSD BC Aggregate Bond OPEB Index Weighted Average Maturity 6.60 years 7.77 years Effective Duration 5.21 years 5.80 years Average Coupon 2.87% 3.06% Yield to Maturity 2.65% 2.66% Average Quality Aa3 Aa2 JHIGHMARK PARS: Central Contra Costa Sanitary District 5 CAPITAL MANAGEMENT Fixed Income Portfolio: Sectors As of Fourth Quarter 2017 40.0% 30.0% 20.0% 10.0% Cash Treasury Agency Corp Non-Corp MBS CM❑ ABS CM BS ■CCCS❑OPEB 0.0% 27.0% 0.0% 41.9% 0.0% 22.4% 0.0% 8.7% 0.0% ■Barclays U.S.Aggregate Bond Index 0.0% 38.0% 1.7% 26.0% 5.1% 26.8% 0.0% 0.5% 1.9% JHIGHMARK PARS: Central Contra Costa Sanitary District 6 CAPITAL MANAGEMENT Fixed Income Portfolio: Effective Duration and Effective Maturity As of Fourth Quarter 2017 Effective Duration Effective Maturity 35% 40% 35°14 30% 30% 25°/° 25% 20% 20% 15% 15% 10°14 10% 5% 5% 0% 0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 10+ 0% Yrs. Yrs. 0 1 Yr. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 Yrs. 10+Yrs. ■CCCSD OP EB 11.75% 18.66% 28.88% 23.04% 6.74% 10.92% ■CCCSD OPEB 2.48% 25.60% 26.53% 16.70% 15.44% 13.26% BC Aggregate Bond Index 0.12°/4 23.54°14 37.78°14 15.68°14 7.90°14 14.97°14 BC Aggregate Bond Index 0.05% 20.56% 23.01% 27.02% 13.08% 16.29% JHIGHMARK® PARS: Central Contra Costa Sanitary District 7 CAPITAL MANAGEMENT Holdings-Reporting as of Trade Date Account:6746055900-PARS/CCCSD 115P-OPEB As of:31-Dec-2017 Asset Type Asset Short Name Ticker Shares/Units Price Market Value S&P Rating Cash&Cash Equivalents CASH (35,066.3900) $1.0000 ($35,066.39) Cash&Cash Equivalents FIRSTAMERN GOVT OBLIG FD CL Z#3676 FGZXX 1,279,916.1600 $1.0000 $1,279,916.16 N/A Corporate Obligations AMERICAN INTLGROUP 2.300% 7/16/19 AIG2319 60,000.0000 99.925% $59,955.00 BBB+ Corporate Obligations AMEX CREDIT BD 2.250% 8/15/19 AEC2219 80,000.0000 100.209% $80,167.20 A- Corporate Obligations AMXCA 2017-3A 1.1644%11/15/22 A2A1122 200,000.0000 99.140% $198,280.00 AAA Corporate Obligations AMXCA 2017-6A 2.040% 5/15/23 A2A2023 100,000.0000 99.518% $99,518.00 AAA Corporate Obligations ANHEUSER-BUSCH INBEV 3.650% 2/01/26 A133626 100,000.0000 103.198% $103,198.00 A- Corporate Obligations AT&T INC NTS 4.125% 2/17/26 AIN4126 80,000.0000 102.286% $81,828.80 BBB+ Corporate Obligations AT&T INC SR GLBL NT 4.450% 4/01/24 AIS4424 40,000.0000 105.781% $42,312.40 BBB+ Corporate Obligations AVALONBAY CMNTYS INC 3.450% 6/01/25 ACI3425 80,000.0000 102.483% $81,986.40 A- Corporate Obligations BB&T CORP BIDS 2.450% 1/15/20 BCB2420 120,000.0000 100.331% $120,397.20 A- Corporate Obligations BECTON DICKINSON BIDS 2.133% 6/06/19 BDB2119 80,000.0000 99.775% $79,820.00 BBB Corporate Obligations BK OF AMERICA CORP 4.000% 4/01/24 BOA4024 120,000.0000 105.713% $126,855.60 A- Corporate Obligations BK OF MONTREAL MTN 2.350% 9/11/22 BOM2322 95,000.0000 98.369% $93,450.55 A+ Corporate Obligations BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 120,000.0000 99.999% $119,998.80 A+ Corporate Obligations BK OF NY MELLON MTN 2.050% 5/03/21 BON2021 80,000.0000 98.785% $79,028.00 A Corporate Obligations BOSTON PPTI ES LP NTS 4.125% 5/15/21 BPL4121 80,000.0000 104.516% $83,612.80 A- Corporate Obligations CAPITAL ONE BK USA 3.375% 2/15/23 COB3323 120,000.0000 100.987% $121,184.40 BBB Corporate Obligations CC CCIT2014-A1 2.880% 1/23/23 CC22823A 125,000.0000 101.796% $127,245.00 N/A Corporate Obligations CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 80,000.0000 99.322% $79,457.60 A+ Corporate Obligations CITIGROUP INC 3.200%10/21/26 CI33226 120,000.0000 99.219% $119,062.80 BBB+ Corporate Obligations CVS CAREMARK CORP NT 2.750%12/01/22 CCC2722 100,000.0000 98.508% $98,508.00 BBB+ Corporate Obligations DOW CHEM CO NTS 4.375%11/15/42 DCC4342 80,000.0000 105.216% $84,172.80 BBB Corporate Obligations ECOLAB INC SR NT 2.375% 8/10/22 EIS2322 80,000.0000 98.881% $79,104.80 A- Corporate Obligations EL PASO ENERGY CORP 7.800% 8/01/31 EP31 80,000.0000 128.983% $103,186.40 BBB- Corporate Obligations ENBRIDGE INC 2.900% 7/15/22 E122922 100,000.0000 99.395% $99,395.00 BBB+ Corporate Obligations FORD MTR CO NTS 7.450% 7/16/31 F31 80,000.0000 130.721% $104,576.80 BBB Corporate Obligations FORDO 2015-C A3 1.410% 2/15/20 F2A1420B 63,624.4700 99.818% $63,508.67 AAA Corporate Obligations GENERAL MTRS CO NT 3.500%10/02/18 GM18 80,000.0000 101.040% $80,832.00 BBB Corporate Obligations HEWLETT PACKARD CO NT4.375% 9/15/21 HPC4321 80,000.0000 105.260% $84,208.00 BBB JHIGHMARK PARS: Central Contra Costa Sanitary District s CAPITAL MANAGEMENT Holdings-Reporting as of Trade Date Account:6746055900-PARS/CCCSD 115P-OPEB As of:31-Dec-2017 Asset Type Asset Short Name Ticker Shares/Units Price Market Value S&P Rating Corporate Obligations JOHNSON&JOHNSON 3.625% 3/03/37 130,000.0000 105.648% $137,342.40 AAA Corporate Obligations JPMORGAN CHASE NTS 3.200% 1/25/23 JCN3223 120,000.0000 102.000% $122,400.00 A- Corporate Obligations KEY BANK NA 2.250% 3/16/20 KBN2220 100,000.0000 99.707% $99,707.00 A- Corporate Obligations MACY'S RETAIL HLDGS 4.375% 9/01/23 MRH4323 80,000.0000 100.873% $80,698.40 BBB- Corporate Obligations MIDAMERICAN ENERGY 3.750%11/15/23 ME33723 110,000.0000 104.132% $114,545.20 A- Corporate Obligations NAROT2016-C A3 1.180% 1/15/21 N2A1121 28,000.0000 98.971% $27,711.88 N/A Corporate Obligations ORACLE CORP NTS 2.950%11/15/24 OCN2924 100,000.0000 100.717% $100,717.00 AA- Corporate Obligations PETRO-CDA NT 6.800% 5/15/38 SU/38 50,000.0000 137.823% $68,911.50 A- Corporate Obligations PNC FINL SVCS GROUP 3.150% 5/19/27 PFS3127 100,000.0000 100.342% $100,342.00 A- Corporate Obligations QUEST DIAGNOSTICS BD 3.500% 3/30/25 QDB3525 80,000.0000 101.152% $80,921.60 BBB+ Corporate Obligations ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 80,000.0000 101.694% $81,355.20 BBB- Corporate Obligations SHIREACQINVIRELAND2.875% 9/23/23 SA12823 80,000.0000 98.307% $78,645.60 BBB- Corporate Obligations TACT 2016-D A3 1.230%10/15/20 T2A1220A 125,000.0000 99.129% $123,911.25 AAA Corporate Obligations TACT 2017-D A3 2.260% 1/18/22 T2A2222 150,000.0000 99.410% $149,115.00 AAA Corporate Obligations TIME WRNR ENTMT DEB 8.375% 3/15/23 TWE8323 80,000.0000 121.413% $97,130.40 BBB- Corporate Obligations TRANSCONTINENTAL NT 6.050% 6/15/18 WMB/18 80,000.0000 101.612% $81,289.60 BBB Corporate Obligations UNTD AIR 2013-1 4.300% 8/15/25 UA24325 85,232.3000 105.525% $89,941.38 A Corporate Obligations VERIZON COMM SR NT 4.125% 3/16/27 VC44127 60,000.0000 104.271% $62,562.60 BBB+ Corporate Obligations VERIZON COMMUNICATIO 5.250% 3/16/37 60,000.0000 109.968% $65,980.80 BBB+ Corporate Obligations WELLS FARGO&CO NEW 3.000%10/23/26 WFC3026A 120,000.0000 98.016% $117,619.20 A Funds DODGE&COX INTLSTOCK FD(CLSD)#1048 DODFX 27,390.9760 $46.3200 $1,268,750.01 N/A Funds EATON VANCE FLTG RT&HI INCM 1#904 EIFHX 1.0370 $8.8600 $9.19 N/A Funds HARTFORD SCHRODR MKTS EQCLY#1842 HHHYX 119,591.5760 $16.6500 $1,991,199.74 N/A Funds ISHARES RUSSELL MIDCAP ETF IWR 10,744.0000 $208.1300 $2,236,148.72 N/R Funds ISHARES S&P 500 GROWTH ETF IVW 14,638.0000 $152.7700 $2,236,247.26 N/R Funds ISHARES S&P 500 VALUE ETF IVE 34,320.0000 $114.2400 $3,920,716.80 N/R Funds ISHARES TR CORE S&P500 ETF IVV 22,897.0000 $268.8500 $6,155,858.45 N/R Funds MFS INTERNATIONAL GROWTH R6#4805 MGRDX 37,725.0300 $33.7700 $1,273,974.26 N/A Funds NATIONWIDE BAILARD INTL EQ 1#6071 NWHMX 237,110.5280 $8.9500 $2,122,139.23 N/A Funds NATIONWIDE LOOMIS BOND 1#6064 NWJIX 1.4920 $10.8800 $16.23 N/A JHIGHMARK PARS: Central Contra Costa Sanitary District 9 CAPITAL MANAGEMENT Holdings-Reporting as of Trade Date Account:6746055900-PARS/CCCSD 115P-OPEB As of:31-Dec-2017 Asset Type Asset Short Name Ticker Shares/Units Price Market Value S&P Rating Funds PIMCO TOTAL RETURN INSTL #35 PTTRX 659,419.8750 $10.2700 $6,772,242.12 N/A Funds PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 464,250.9160 $14.6000 $6,778,063.37 N/A Funds T ROWE PRICE NEW HORIZONS FD#532 PRJIX 31,920.6280 $52.6300 $1,679,982.65 N/A Funds UNDISCOVERED MGRS BEHAVRLVAL 11368 UBVLX 39,958.9830 $69.9300 $2,794,331.68 N/A Funds VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 30,839.0840 $77.1100 $2,378,001.77 N/A Funds VNGRD INDEX TR REITVIPER SHS VNQ 10,181.0000 $82.9800 $844,819.38 N/R Funds VNGRDSTTERM INVMTGRADE ADM #539 VFSUX 317,491.4770 $10.6300 $3,374,934.40 N/A Government Obligations FGLMC#E03097 2.500% 3/01/27 E03097F 242,081.7900 100.555% $243,425.34 N/A Government Obligations FGLMC#G60453 3.000% 1/01/46 G60453F 240,814.8300 100.375% $241,717.89 N/A Government Obligations FGLMC#130401 3.000% 1/01/30 J30401F 231,269.2300 102.082% $236,084.26 N/A Government Obligations FHLMC G15252 3.0000%12/1/2029 G15252F 185,748.9600 102.083% $189,618.11 Government Obligations FHLMC V60586 3.0000%8/1/2029 V60586F 234,238.5000 102.022% $238,974.80 Government Obligations F N MA A L9376 3.0000%8/1/2031 AL9376A 186,357.1500 102.026% $190,132.75 Government Obligations FNMA AS7729 3.0000%8/1/2046 AS7729A 266,626.4600 100.234% $267,250.37 Government Obligations F N MA BC 1486 3.0000%8/1/2046 BC1486A 238,232.1700 100.234% $238,789.63 Government Obligations FNMA MA27792.0000%10/1/2026 MA2779A 194,473.5400 99.253% $193,020.82 Government Obligations US TREAS BDS 3.625% 8/15/43 UTB3643 540,000.0000 116.711% $630,239.40 N/A Government Obligations US TREAS NTS 1.250%12/15/18 UTN1218C 850,000.0000 99.477% $845,554.50 N/A Government Obligations US TREAS NTS 1.500%11/30/19 UTN1519E 450,000.0000 99.277% $446,746.50 N/A Government Obligations US TREAS NTS 1.625% 4/30/23 UTN1623 220,000.0000 96.949% $213,287.80 N/A Government Obligations US TREAS NTS 1.875% 1/31/22 UTNO022B 175,000.0000 98.961% $173,181.75 N/A Government Obligations US TREAS NTS 2.000% 2/15/25 UTN2025 150,000.0000 97.754% $146,631.00 N/A Subtotals Cash&Cash Equivalents $1,244,849.77 Funds $45,827,435.26 Government Obligations $4,494,654.92 Corporate Obligations $4,575,699.03 Total $56,142,638.98 JHIGHMARK PARS: Central Contra Costa Sanitary District 10 CAPITAL MANAGEMENT Investment Summary Since CCCSD — Pension Beginning Value $ Inception 0.00 Asset Allocation Contributions 3,359,000.01 Withdrawals -2,596.32 Total Assets: $3,410,770 Gain (Loss) 25,115.40 Interest and Dividends 29,250.77 Period Ending 12-31-2017 Net Accrued Income 11,404.25 3 Month Return: 1 .74% Ending Market Value $ 3,422,174.11- 1 nception-to-Date ,422,174.11*Inception-to-Date Return: 1 .96% Inception Date:9-1-2017 Cash $64,619 Equity 1.89% $1,058,667 31.04% Fixed Income $2,287,483 67.07% * Ending Market Value differs from total market value on page 12 due to differences in reporting methodology. The above ending market value includes accruals. + JPARS: Central Contra Costa Sanitary District HIGHMARK® 11 CAPITAL MANAGEMENT Asset Allocation — Central Contra Costa Sanitary District Pension As of Fourth Quarter 2017 Current Asset Allocation Investment Vehicle Equity 31.04% Range: 20%-40% 1,058,667 Large Cap Core 3.99% IVV iShares Core S&P 500 136,038 3.99% VGIAX Vanguard Growth & Income Adm 136,207 Large Cap Value 4.49% IVE iShares S&P 500 Value 153,310 Large Cap Growth 2.27% IVW iShares S&P 500 Growth 77,454 Mid Cap Core 3.00% IWR iShares Russell MidCap Index Fund 102,192 Small Cap Value 3.24% UBVLX Undisco\ered Mgrs Behavioral Value Inst 110,545 Small Cap Growth 1.50% PRJIX T. Rowe Price New Horizons Fund 1 51,124 International Core 2.51% NWHMX Nationwide Bailard Intl Equities 1 85,617 International Value 1.51% DODFX Dodge & Cox International Stock Fund 51,483 International Growth 1.52% MGRDX MFS® International Growth Fund Class R6 51,695 Emerging Markets 2.01% HHHYX Hartford Schroders Emerging Mkts Eq Y 68,648 Real Estate 1.01% VNQ Vanguard REIT ETF 34,354 Fixed Income 67.07% Range: 50%-80% 2,287,483 45.97% Core Fixed Income Portfolio 1,568,028 Short-Term 6.01% VFSUX Vanguard Short-Term Corp Adm Fund 204,980 Intermediate-Term 7.54% PTTRX PIMCO Total Return Instl Fund 257,249 7.54% PTRQX Prudential Total Return Bond Q 257,226 Cash 1.89% Range: 0%-20% 64,619 1.89% FGZ O( First American Government Oblig Z 64,619 TOTAL 100.00% $3,410,770 JHIGHMARK PARS: Central Contra Costa Sanitary District 12 CAPITAL MANAGEMENT Selected Period Performance PARS/CCCSD 115P - PENSION Account 6746055901 Period Ending: 12/31/2017 Since 3 Months Inception Sector (4 Months) Cash Equivalents .23 .30 Lipper Money Market Funds Index .22 .29 Fixed Income ex Funds .37 .07 Total Fixed Income .41 .00 BC US Aggregate Bd Index .39 -.09 Total Equities 5.48 7.70 Large Cap Funds 6.70 8.66 S&P 500 Composite Index 6.64 8.84 Mid Cap Funds 6.10 8.34 Russell Midcap Index 6.07 9.01 Small Cap Funds 5.39 10.04 Russell 2000 Index 3.34 9.79 International Equities 4.24 5.97 MSCI EAFE Index 4.23 6.82 MSCI EM Free Index 7.44 7.01 Real Estate- ETFs / Sctr Fds 1.48 .85 Wilshire REIT Index 1.70 1.62 Total Managed Portfolio 1.74 1.96 CCCSD Pension 1.87 2.42 Performance Inception: 09/2017 CCCSD Pension Benchmark consists of: 15.5%of S&P 500,3%Russell Midcap,4.5%Russell 2000, 1%Wilshire REIT,2%MSCI EM Free,4%MSCI EAFE,49.25% BC Aggregate, 14%ML 1-3 Yr US Corp/Govt, 1.75% ML US High Yield Mstr II,and 5%Citigroup 1 Month T-Bill Indexes. 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. JHIIGHMARK PARS: Central Contra Costa Sanitary District 13 CAPITAL MANAGEMENT Fixed Income Portfolio: Statistics As of Fourth Quarter 2017 CCCSD BC Aggregate Bond Pension Index Weighted Average Maturity 6.55 years 7.77 years Effective Duration 5.19 years 5.80 years Average Coupon 3.00% 3.06% Yield to Maturity 2.72% 2.66% Average Quality Aa3 Aa2 JHIGHMARK PARS: Central Contra Costa Sanitary District 14 CAPITAL MANAGEMENT Fixed Income Portfolio: Sectors As of Fourth Quarter 2017 40.0% 30.0% 20.0% 10.0% Cash Treasury Agency Corp Non-Corp MBS CMO ABS CMBS ■CCCS❑Pension 0.0% 23.5% 0.0% 46.0% 0.0% 21.5% 0.0% 9.0% 0.0% ■Barclays U.S. Aggregate Bond Index 0.0% 38.0% 1.7% 26.0% 5.1% 26.8% 0.0% 0.5% 1.9% JHIGHMARK® PARS: Central Contra Costa Sanitary District 15 CAPITAL MANAGEMENT Fixed Income Portfolio: Effective Duration and Effective Maturity As of Fourth Quarter 2017 Effective Duration Effective Maturity 35% 40°1° 35°14 30% 30°1/° 25°/° 25°1/° 20% 20°1/° 15% 15°1° 10°14 10% 5°1/° 5% 0o1O 0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 10+ 0°1° Yrs. Yrs. 0-1 Yr. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 Yrs. 10+Yrs. ■ CCC SD Pension 8.50% 20.53% 30.61% 22.94% 7.18% 10.24% ■CCCSD Pension 3.46% 20.85% 29.21% 17.41% 15.46% 13.61% BC Aggregate Bond Index 0.12°14 23.54°14 37.78°14 15.68°14 7.90°14 14.97% BC Aggregate Bond Index 0.05% 20.56% 23.01% 27.02% 13.08% 16.29% JHIGHMARK PARS: Central Contra Costa Sanitary District 16 CAPITAL MANAGEMENT Holdings-Reporting as of Trade Date Account:6746055901-PARS/CCCSD 115P-PENSION As of:31-Dec-2017 Asset Type Asset Short Name Ticker Shares/Units Price Market Value S&P Rating Cash&Cash Equivalents FIRSTAMERN GOVT OBLIG I'D CLZ#3676 FGZXX 64,619.4000 $1.0000 $64,619.40 N/A Corporate Obligations AMERICAN INTLGROUP 2.300% 7/16/19 AIG2319 15,000.0000 99.925% $14,988.75 BBB+ Corporate Obligations AMEX CREDIT BD 2.250% 8/15/19 AEC2219 15,000.0000 100.209% $15,031.35 A- Corporate Obligations AMXCA 2017-3 A 1.1644%11/15/22 A2A1122 25,000.0000 99.140% $24,785.00 AAA Corporate Obligations ANHEUSER-BUSCH INBEV 3.650% 2/01/26 A133626 15,000.0000 103.198% $15,479.70 A- Corporate Obligations AT&T INC NTS 4.125% 2/17/26 AIN4126 15,000.0000 102.286% $15,342.90 BBB+ Corporate Obligations AT&T INC SR GLBL NT 4.450% 4/01/24 AIS4424 10,000.0000 105.781% $10,578.10 BBB+ Corporate Obligations AVALONBAY CMNTYS INC 3.450% 6/01/25 AC13425 15,000.0000 102.483% $15,372.45 A- Corporate Obligations BB&T CORP BDS 2.450% 1/15/20 BCB2420 15,000.0000 100.331% $15,049.65 A- Corporate Obligations BECTON DICKINSON BDS 2.133% 6/06/19 BDB2119 20,000.0000 99.775% $19,955.00 BBB Corporate Obligations BK OF AMERICA CORP 4.000% 4/01/24 BOA4024 20,000.0000 105.713% $21,142.60 A- Corporate Obligations BK OF MONTREAL MTN 2.350% 9/11/22 BOM2322 15,000.0000 98.369% $14,755.35 A+ Corporate Obligations BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 20,000.0000 99.999% $19,999.80 A+ Corporate Obligations BK OF NY MELLON MTN 2.050% 5/03/21 BON2021 20,000.0000 98.785% $19,757.00 A Corporate Obligations BOSTON PPTIES LP NTS 4.125% 5/15/21 BPL4121 20,000.0000 104.516% $20,903.20 A- Corporate Obligations CAPITAL ONE BK USA 3.375% 2/15/23 COB3323 25,000.0000 100.987% $25,246.75 BBB Corporate Obligations CC CCIT 2014-A1 2.880% 1/23/23 CC22823A 52,000.0000 101.796% $52,933.92 N/A Corporate Obligations CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 20,000.0000 99.322% $19,864.40 A+ Corporate Obligations CITIGROUP INC 3.200%10/21/26 C133226 25,000.0000 99.219% $24,804.75 BBB+ Corporate Obligations CVS CAREMARK CORP NT 2.750%12/01/22 CCC2722 20,000.0000 98.508% $19,701.60 BBB+ Corporate Obligations DOW CHEM CO NTS 4.375%11/15/42 DCC4342 20,000.0000 105.216% $21,043.20 BBB Corporate Obligations ECOLAB INC SR NT 2.375% 8/10/22 EIS2322 20,000.0000 98.881% $19,776.20 A- Corporate Obligations EL PASO ENERGY CORP 7.800% 8/01/31 EP31 20,000.0000 128.983% $25,796.60 BBB- Corporate Obligations ENBRIDGE INC 2.900% 7/15/22 E122922 20,000.0000 99.395% $19,879.00 BBB+ Corporate Obligations FORD MTR CO NTS 7.450% 7/16/31 F31 20,000.0000 130.721% $26,144.20 BBB Corporate Obligations FORDO 2015-C A3 1.410% 2/15/20 F2A1420B 13,831.4100 99.818% $13,806.24 AAA Corporate Obligations GENERAL MTRS CO NT 3.500%10/02/18 GM18 20,000.0000 101.040% $20,208.00 BBB Corporate Obligations HEWLETT PACKARD CO NT4.375% 9/15/21 HPC4321 20,000.0000 105.260% $21,052.00 BBB Corporate Obligations JOHNSON&JOHNSON 3.625% 3/03/37 20,000.0000 105.648% $21,129.60 AAA Corporate Obligations JPMORGAN CHASE NTS 3.200% 1/25/23 JCN3223 25,000.0000 102.000% $25,500.00 A- JHIGHMARK® PARS: Central Contra Costa Sanitary District 17 CAPITAL MANAGEMENT Holdings-Reporting as of Trade Date Account:6746055901-PARS/CCCSD 115P-PENSION As of:31-Dec-2017 Asset Type Asset Short Name Ticker Shares/Units Price Market Value S&P Rating Corporate Obligations KEY BANK NA 2.250% 3/16/20 KBN2220 10,000.0000 99.707% $9,970.70 A- Corporate Obligations MACY'S RETAIL HLDGS 4.375% 9/01/23 MRH4323 20,000.0000 100.873% $20,174.60 BBB- Corporate Obligations MIDAMERICAN ENERGY 3.750%11/15/23 ME33723 10,000.0000 104.132% $10,413.20 A- Corporate Obligations PETRO-CDA NT 6.800% 5/15/38 SU/38 10,000.0000 137.823% $13,782.30 A- Corporate Obligations QUEST DIAGNOSTICS BD 3.500% 3/30/25 QDB3525 20,000.0000 101.152% $20,230.40 BBB+ Corporate Obligations ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 20,000.0000 101.694% $20,338.80 BBB- Corporate Obligations SHIRE ACQ INV I RELAN D2.875% 9/23/23 SA12823 20,000.0000 98.307% $19,661.40 BBB- Corporate Obligations TAOT2016-D A3 1.230%10/15/20 T2A1220A 25,000.0000 99.129% $24,782.25 AAA Corporate Obligations TACT 2017-D A3 2.260% 1/18/22 T2A2222 25,000.0000 99.410% $24,852.50 AAA Corporate Obligations TIME WRNR ENTMT DEB 8.375% 3/15/23 TWE8323 20,000.0000 121.413% $24,282.60 BBB- Corporate Obligations TRANSCONTINENTAL NIT 6.050% 6/15/18 WMB/18 20,000.0000 101.612% $20,322.40 BBB Corporate Obligations VERIZON COMM SR NT 4.125% 3/16/27 VC44127 10,000.0000 104.271% $10,427.10 BBB+ Corporate Obligations VERIZON COMMUNICATIO 5.250% 3/16/37 15,000.0000 109.968% $16,495.20 BBB+ Corporate Obligations WELLS FARGO&CO NEW 3.000%10/23/26 WFC3026A 25,000.0000 98.016% $24,504.00 A Funds DODGE&COX INTI-STOCK FD(CLSD)#1048 DODFX 1,111.4620 $46.3200 $51,482.92 N/A Funds HARTFORD SCHRODR MKTS EQCLY#1842 HHHYX 4,123.0220 $16.6500 $68,648.32 N/A Funds ISHARES RUSSELL MIDCAP ETF IWR 491.0000 $208.1300 $102,191.83 N/R Funds ISHARES S&P 500 GROWTH ETF IVW 507.0000 $152.7700 $77,454.39 N/R Funds ISHARES S&P 500 VALUE ETF IVE 1,342.0000 $114.2400 $153,310.08 N/R Funds ISHARES TR CORE S&P500 ETF IVV 506.0000 $268.8500 $136,038.10 N/R Funds MFS INTERNATIONAL GROWTH R6#4805 MGRDX 1,530.7930 $33.7700 $51,694.88 N/A Funds NATIONWIDE BAILARD INTL EQ I#6071 NWHMX 9,566.1890 $8.9500 $85,617.39 N/A Funds PI MCO TOTAL RETURN INSTL #35 PTTRX 25,048.6320 $10.2700 $257,249.45 N/A Funds PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 17,618.1880 $14.6000 $257,225.54 N/A Funds T ROWE PRICE NEW HORIZONS FD#532 PRJIX 971.3810 $52.6300 $51,123.78 N/A Funds UNDISCOVERED MGRS BEHAVRL VAL 11368 UBVLX 1,580.8020 $69.9300 $110,545.48 N/A Funds VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 1,766.3930 $77.1100 $136,206.56 N/A Funds VNGRD IN DEX TR REIT VIPER SHS VNQ 414.0000 $82.9800 $34,353.72 N/R Funds VNGRDSTTERM INVMTGRADE ADM #539 VFSUX 19,283.1720 $10.6300 $204,980.12 N/A Government Obligations FGLMC#E03097 2.500% 3/01/27 E03097F 40,346.9700 100.555% $40,570.90 N/A JHIGHMARK PARS: Central Contra Costa Sanitary District 18 CAPITAL MANAGEMENT Holdings-Reporting as of Trade Date Account:6746055901-PARS/CCCSD 115P-PENSION As of:31-Dec-2017 Asset Type Asset Short Name Ticker Shares/Units Price Market Value S&P Rating Government Obligations FGLMC#G60453 3.000% 1/01/46 G60453F 41,519.8000 100.375% $41,675.50 N/A Government Obligations FGLMC#J30401 3.000% 1/01/30 J30401F 36,342.3100 102.082% $37,098.96 N/A Government Obligations FHLMC G15252 3.0000%12/1/2029 G15252F 42,363.8000 102.083% $43,246.24 Government Obligations F N MA A L9376 3.0000%8/1/2031 AL9376A 42,353.9000 102.026% $43,211.99 Government Obligations F N MA AS7729 3.0000%8/1/2046 AS7729A 45,970.0800 100.234% $46,077.65 Government Obligations F N MA BC1486 3.0000%8/1/2046 BC1486A 45,813.8800 100.234% $45,921.08 Government Obligations FNMA MA2779 2.0000%10/1/2026 MA2779A 41,377.3600 99.253% $41,068.27 Government Obligations US TREAS BIDS 3.625% 8/15/43 UTB3643 75,000.0000 116.711% $87,533.25 N/A Government Obligations US TREAS NTS 1.250%12/15/18 UTN1218C 80,000.0000 99.477% $79,581.60 N/A Government Obligations US TREAS NTS 1.500%11/30/19 UTN1519E 100,000.0000 99.277% $99,277.00 N/A Government Obligations USTREAS NITS 1.625% 4/30/23 UTN1623 55,000.0000 96.949% $53,321.95 N/A Government Obligations US TREAS NTS 1.875% 1/31/22 UTNO022B 25,000.0000 98.961% $24,740.25 N/A Government Obligations US TREAS NTS 2.000% 2/15/25 UTN2025 25,000.0000 97.754% $24,438.50 N/A Subtotals Cash&Cash Equivalents $64,619.40 Funds $1,778,122.56 Government Obligations $707,763.14 Corporate Obligations $860,264.76 Total $3,410,769.86 JHIGHMARK PARS: Central Contra Costa Sanitary District 19 CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT For Period Ending December 31 , 2017 LARGE CAP EQUITY FUNDS 3-Month YTD 1-Year 3-Year 5-Ye a r Fund Name Inception Return Rank Return Rank Return Rank Return Rank Return Rank iShares Core S&P 500 (4/17) 6.64 42 21.79 29 21.79 29 11.36 15 15.73 14 iShares S&P 500 Value ETF (4/17) 6.28 42 15.19 61 15.19 61 9.31 38 14.04 36 Vanguard Growth & Income Adm (12/16) 6.70 39 20.80 54 20.80 54 11.38 14 15.93 10 iShares S&P 500 Growth ETF (4/17) 6.75 43 27.20 54 27.20 54 12.67 29 16.79 24 Idx: S&P 500 6.64 -- 21.83 -- 21.83 -- 11.41 -- 15.79 EQUITY -- b� W MID CAP iShares Russell Mid-Cap (3/16) 6.02 43 18.32 27 18.32 27 9.40 42 14.76 25 Idx: Russell Mid Cap 6.07 -- 18.52 -- 18.52 -- 9.58 -- 14.96 EQUITY -- SMALL CAP Undiscovered Managers Behavioral Val L (9/16) 5.55 10 13.43 11 13.43 11 12.34 7 15.58 4 Idx: Russell 2000 Value 2.05 -- 7.84 -- 7.84 -- 9.55 -- 13.01 T. Rowe Price New Horizons Fund 1 4.66 50 31.67 9 31.67 9 14.11 8 18.64 2 Idx: Russell 2000 Growth 4.59 -- 22.17 -- 22.17 -- 10.28 -- 15.21 INTERNATIONAL -- e Dodge & Cox International Stock 1.21 98 23.94 72 23.94 72 5.96 86 8.50 17 Nationwide Bailard Intl Equities 1 3.77 58 24.68 62 24.68 62 7.19 67 8.04 27 MFS® International Growth Fund Class R6 5.89 10 32.58 31 32.58 31 11.02 15 8.17 49 Idx: MSCI EAFE 4.23 -- 25.03 -- 25.03 -- 7.80 -- 7.90 -- Hartford Schroders Emerging Mkts Eq Y 6.97 37 41.10 18 41.10 18 10.84 13 4.89 33 Idx: MSCI Emerging Markets 7.44 -- 37.28 -- 37.28 -- 9.10 -- 4.35 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. JHIGHMARK@ PARS: Central Contra Costa Sanitary District 20 CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT For Period Ending December 31 , 2017 REIT EQUITY FUNDS 3-Month YTD 1-Year 3-Year 5-Ye a r Fund Name Inception Return Rank Return Rank Return Rank Return Rank Return Rank Vanguard REIT ETF (4/17) 1.38 76 4.95 57 4.95 57 5.25 46 9.24 27 Idx: Wilshire REIT Index 1.70 -- 4.18 -- 4.18 -- 5.21 -- 9.35 BOND FUNDSA Pimco Total Return Inst'I 0.11 74 5.13 10 5.13 10 2.80 21 2.21 39 Prudential Total Return Bond Q (5/16) 1.11 2 6.71 2 6.71 2 3.84 3 3.54 3 Vanguard Short-Term Investment-Grade Adm -0.04 47 2.13 26 2.13 26 2.03 19 1.80 15 Idx: BarCap US Aggregate Bond 0.39 -- 3.54 -- 3.54 -- 2.24 -- 2.10 -- Eaton Vance Floating-Rate & Hi Inc Inst (12/16) 0.93 51 4.63 9 4.63 9 4.76 8 4.07 14 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. JHIGHMARK PARS: Central Contra Costa Sanitary District 21 CAPITAL MANAGEMENT