HomeMy WebLinkAbout05.c. Review and provide input on Highmark Capital Management Government Accounting Standards Board (GASB 45) Other Post-Employment Benefits (OPEB) Sub-trust Quarterly Report (Second Quarter 2018) Page 1 of 29
Item 5.c.
I
Central Contra Costa Sanitary District
August 21, 2018
TO: FINANCE COMMITTEE
FROM: PHIL LEI BER, DIRECTOR OF FINANCE AND ADMI NI STRATI ON
REVIEWED BY: 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) SUB-TRUST QUARTERLY
REPORT (SECOND QUARTER 2018)
Attached for review is the most recent Highmark overview and GASB 45 OPEB 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 Overview of 2nd Quarter 2018 GASB 45 OPEB Sub-trust Report
2. PARS Investment Report 2nd Quarter of 2018
August 21, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 147 of 177
Page 2 of 29
Attachment 1
,AH1GHMARfS._
CAPITAL MANAGEMENT
EI' ENT
July 25, 2018
Phil Leiber
Director of Finance and Administration
Central Contra Costa Sanitary District
5019 Imhoff Place
Martinez, CA 94553-4392
RE: 2Q Quarter 2018 OPEB/Pension Report
Dear Mr. Leiber,
After a tumultuous first quarter, investors found themselves adjusting to the shifting
cross currents in global financial markets as the second quarter unfolded. Trade
tensions took center stage, while worries about another wave of populism in Europe
clouded investor optimism over domestic tax reform. Meanwhile, the Fed pressed on
with its campaign to raise short-term interest rates and even suggested it might pick up
its pace, albeit modestly. The shining bright spot of the second quarter was a robust
corporate earnings season that handily beat analyst expectations. For the first quarter,
earnings per share for the S&P 500 Index had increased nearly 25% year-over-year—the
best performance since the third quarter of 2010, according to Factset. Investors took
comfort in the expectation that domestic firms would use the windfall to fund equity-
market friendly activity including share buybacks, increased capital expenditures and
mergers and acquisitions.
Positive corporate earnings news and generally strong domestic economic data helped
U.S. stock prices to recover lost ground from the first quarter. Looking to avoid exposure
to the most trade-sensitive companies globally, investors favored shares of smaller
companies with secular growth characteristics while shunning emerging market names'.
Within fixed income markets, yields moved higher as the bellwether 10-year Treasury
Note crossed the 3% mark in April for the first time since 2013. As the quarter closed
out, long-term yields fell and the yield curve flattened, fueling fears of dimming economic
growth. Most notably, investment-grade credit spreads widened from historically tight
levels on concerns of growing leverage in the corporate sector. Indicative of the thirst for
corporate debt, AT&T became the world's most indebted company with $180 billion in
total debt after completing its acquisition of Time Warner.
Overseas, China remains an area to watch closely, both given its influence on the global
economy and the ongoing structural challenges it faces. A growing rift with the U.S. on
trade complicates the developing nation's cyclical picture, causing investors to flee the
local equity market; which, until recently, had been tracking the U.S. stock market
closely.
1 Morningstar. In the second quarter, the Russell 2000 Index outperformed the MSCI Emerging
Markets Index.
August 21, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 148 of 177
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Economic Highlights
U.S. Growth: The domestic economy grew at an annualized rate of 2% in the first
quarter. The lackluster growth was consistent with trends for first-quarter readings of the
past several years despite fiscal stimulus. Economists are forecasting an acceleration of
growth in the second quarter2.
Inflation: May's Core Consumer Price Expenditure Index, the Fed's preferred measure
of inflation that excludes the costs of volatile food and energy prices, hit 2% for the first
time since April 2012. Rising energy prices pushed May's headline inflation reading, the
Consumer Price Index, to 2.8% - its fastest pace since February 20123.
Fed Funds: In June, the Fed increased its short-term borrowing rate for the second time
this year by 0.25%, to 1.75% - 2.0%. The monetary policy setting body expects to hike
rates an additional two more times before the end of the year, according to its survey of
voting members known as the "dot plot."
Employment: Through June, the U.S. economy averaged 215,000 new jobs per month.
Meanwhile, the unemployment rate ticked up to 4.0% from 3.8%, but this reflected good
news as workforce participation has rallied after hitting a low of 62.3% in 2015. Wage
growth has picked up modestly but remains tame at 2.7%, quelling fears of a meaningful
acceleration in broader inflation3.
Housing: Higher mortgage rates have yet to slow the housing market with low inventory
continuing to support healthy price appreciation. In April, home prices rose by 6.4% over
the prior 12 months according to the S&P Case-Schiller National Home Price Index.
Corporate Earnings: According to Factset, S&P 500 earnings grew by 25% in the first
quarter as companies began reaping the benefits of tax reform. Consensus estimates for
the second quarter call for a 20% increase in earnings with an 8.8% growth rate on top
line revenue. A continued rebound in energy sector earnings has also contributed to
strong results overall.
Consumer Confidence: Trade tensions and rising fuel prices weighed on consumer
expectations, putting modest downward pressure on the Conference Board's Consumer
Confidence Index. The index level stood at 126.4 in June, off its 14-year high of 130.0 in
February.
Energy: Oil prices continued to rally as OPEC supply constraints and depleting
inventories pushed West Texas Intermediate Crude up during the quarter to $74 per
barrel - a level not seen since late 20144. At the end of the quarter, the national average
for a gallon of regular gasoline was $2.85 versus $2.45 at the beginning of the years.
2 B EA.g ov
3 Bureau of Labor Statistics
4 Federal Reserve Bank of St. Louis
5 EIA.gov
August 21, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 149 of 177
Page 4 of 29
Trade War/Trade Skirmish
As the cloud of a looming trade war continued to hang ominously over global financial
markets during the second quarter, investor sentiment swung with every headline.
Escalating threats of tariffs and other protectionist measures between the U.S. and its
major trading partners were unwelcome offsets to a domestic fiscal stimulus package
that was only starting to work its way through the economy. A brewing element of
uncertainty sent investors into the areas of the market most immune from global trade
strife.
To be sure, the timing of the Trump administration's all-encompassing trade offensive
was no coincidence. With tax reform blowing a strengthening wind at the back of the
American economy, the President felt he would now be in a better bargaining position to
reset what his administration views as unbalanced trading terms and practices.
America's largest trading partners -- China, the EU, Mexico and Canada -- now find
themselves simultaneously confronted by an unhappy customer. China, in particular,
finds itself in President Trump's crosshairs not only for its substantially large trade
surplus with the U.S., but also for a pattern of trade abuses that includes systematic
intellectual property theft.
In addition to the steel and aluminum import tariffs announced during the first quarter,
President Trump included $50 billion worth of products from China to be subject to a
25% tariff, most of which are scheduled to take effect early in the third quarter. In
response to a Chinese announcement of retaliatory tariffs, President Trump has asked
the United States Trade Representative, Robert Lighthizer, to identify an additional $200
billion of Chinese imports for a 10% tariff. As the retaliation intensified, further salvos
included a proposal for restrictions on Chinese investment in U.S. companies. There
seemed almost no end in sight to the exchanges. Such aggressive tactics on multiple
fronts comes with the potential for both high risk and uncertain reward. As we noted in
last quarter's Perspectives, protectionist policies are often lose—lose propositions.
History has proven that the intention of protecting domestic industries is typically not
achieved and the result causes significant, unintended harm to the economy. Could this
time be different? To answer this question, it is important to first understand the
administration's end game.
A key distinction in comparing current trade tensions and past periods of protectionism is
the motivation behind such actions. Typically, governments have used tariffs as direct
mechanisms to protect domestic industries from international competition. In this
instance, however, tariffs and other measures are intended as leverage to remove
existing barriers between America and its trading partners.
Peter Navarro, the administration's Director of Trade and Industrial Policy, framed the
President's perspective succinctly by saying, "We're already in a trade war with China.
The problem is we've not been fighting back Trump, through tariffs, wants to call a
truce."
In other words, from the administration's perspective, President Trump's trade strategy is
a means to an end to level the playing field. For example, during a tense G7 summit in
early June, President Trump unexpectedly offered a fully free trade agreement to the
August 21, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 150 of 177
Page 5 of 29
leaders of the other six major countries. "No tariffs, no barriers, that's the way it should
be," he said. Of course, such a resolution is much easier said than done, so it was no
surprise that the President didn't find any willing takers on the spot. Perhaps the
President was bluffing, but the offer did serve to reinforce his intentions.
The good news is that all indications point to the desire for negotiated settlements.
Offers have been made, but no agreement has been reached with any country and
negotiations remain ongoing. What then will each side be willing to settle for, and,
perhaps more importantly, how far will this go? Both questions have no clear answer at
this point. What is clear is that President Trump's conviction on this issue runs deep and
he is unlikely to settle for symbolic concessions to win a political victory as many have
anticipated. That's the bad news. We shouldn't expect any side to capitulate without a
fight.
Such a proposition is clearly unsettling to global financial markets that crave certainty.
There is no way to accurately predict the timing of an outcome that boils down to a test
of political wills. On a positive note, some trading partners have already offered
concessions. However, nothing yet has met the threshold of acceptability for the Trump
administration. Until this happens, we expect elevated levels of volatility to persist across
all asset classes and currencies.
Signs of progress will continue to be "risk-on" catalysts for investors, while further
deterioration of the possibility for compromise will jeopardize the underpinnings of the
global economic expansion and possibly cause a full blown global recession.
Ultimately, markets will not care about the motivation behind the tariffs if they are
implemented for a protracted period of time. Even if a compromise is eventually reached
significant economic damage can be done to all parties. While we acknowledge that no
side wants to feel the pain of a trade war, the risks that all sides are digging in appear to
be rising -- most recently with President Trump's call for increased tariffs on European
auto imports, a step quickly countered with reciprocal threats by the EU.
There is no denying that the investment implications of the standoff are significant.
Sorting through the game theory, our base case assumption is that rational thought will
prevail and agreements are reached before irreversible damage is done. However, we
cannot rule out the worst- case scenario, as those odds appear to be rising, and we
advise investors not to stray far from their strategic asset allocation policy in the hope
that their risk-on bets can time favorable equity market bounces.
Plan Performance
The Central Contra Costa Sanitary District OPEB Plan returned 1.08% gross of
investment fees for the second quarter. The return lagged the District's OPEB Plan
Benchmark target of 1.46%. Domestic equity markets lagged slightly benchmark
targets due to the Plan's overweight to large cap value oriented index strategies. The
divergence between value and growth continued to widen during the quarter. Fixed
income returns were in-line with benchmark targets. Our underweight to REITs, which
was the best performing market in the second quarter was a negative to Plan returns.
From an attribution standpoint, the Plan was most negatively impacted by an overweight,
and manager underperformance in the international equity segment. Two managers
(Dodge & Cox and Bailard International) posted returns that ranked in the bottom 10th
August 21, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 151 of 177
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percentile of their respective Morningstar universes. Our manager within the emerging
market segment, while placing in the 36th percentile, generated a -8.38% return in the
second quarter. The combination of worries surrounding international trade, and the
negative impact of a strong dollar, weighed on international equities. At quarter-end,
we made a slight asset allocation adjustment, moving to a neutral allocation to equities
at 50%, which represented a reduction to stocks of -1.5%. We added +1% to fixed
income, and added +0.5% to cash/money market. Within stocks, we reduced our
international equity allocation by 4%, which was redeployed into large cap, mid cap and
small cap equity, in addition to the fixed income and cash increases.
The Central Contra Costa Sanitary District Pension Plan returned 0.48% for the quarter,
gross of investment fees, which trailed the District's Plan benchmark target of 0.84%.
Performance contributions from the various asset class segments were similar to the
OPEB Plan. With fixed income markets down more than stocks in the quarter, the more
heavily weighted bond allocation within the pension plan, had a slightly larger negative
impact on Plan returns.
With respect to asset allocation in the Pension Plan, the ending quarter allocation was a
bit skewed by a cash contribution that arrived into the Plan on June 28. Our target
allocation, post rebalance reflected a neutral equity target of 30%, and a fixed
income/cash allocation of 70%. And as well, in the pension plan we also reduced the
international equity allocation by-2%.
Andrew Brown
August 21, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 152 of 177
Attachment 2
PARS: Central Contra Costa Sanitary District
OPEB and Pension Plan
Second Quarter 2018
Presented by
Andrew Brown, CFA
JK�
HIGHMAR ��
CAPITAL MANAGEMENT
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Investment Summary Since Inception
CCCSD - OPEB Beginning Value $566,683.26
Asset Allocation Contributions 103,379,464.21
Withdrawals -63,660,987.31
Total Assets: $59,389,409 Gain (Loss) 8,525,117.24
Interest and Dividends 10,579,154.07
Period Ending: 6-30-2018 Net Accrued Income 202,588.50
2Q18 Return: 1 .08% Ending Market Value $59,592,019.97*
1 Year Return: 5.96%
Inception-to-Date Return: 9.45%
Cash
Inception Date:4-1-2009
$1.6041722_
Plan target rate of return: 6.25% 270%
Equity
�
291752,445
f
Fixed Income
$28,032,242
47,20°Io
* Ending Market Value differs from total market value on page 3 due to differences in reporting methodology. The above ending market value includes accruals.
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Asset Allocation - Central Contra Costa Sanitary District OPEB
As of Second Quarter 2018
Current Asset Allocation Investment Vehicle
Equity 50.10% Range: 40%-60% 29,752,445
Large Cap Core 10.96% IVV iShares S&P 500 Index Fund 61509,512
4.47% VGIAX Vanguard Growth & Income Adm 21655,236
Large Cap Value 6.98% IVE iShares S&P 500 Value Fund 431433862
Large Cap Growth 4.27% IVW iShares S&P 500 Growth Fund 21538,017
Mid Cap Core 4.99% IW R iShares Russell MidCap Index Fund 21961,050
Small Cap Value 5.59% UBVLX Undiscovered Mgrs Behavioral Value Inst 31321,812
Small Cap Growth 3.27% PRJIX T. Rowe Price New Horizons Fund 1 11940,856
International Core 1.52% NWHMX Nationwide Bailard Intl Equities 1 900,433
International Value 1.74% DODFX Dodge & Cox International Stock Fund 11035,643
International Growth 1.75% MGRDX MFSO International Growth Fund Class R6 110381618
Emerging Markets 2.95% HHHYX Hartford Schroders Emerging Mkts Eq Y 1,752,244
Real Estate 1.61% VNQ Vanguard REIT ETF 955,164
Fixed Income 47.20% Range: 40%-60% 2850325242
26.88% Core Fixed Income Portfolio 15,961,335
Short-Term 5.96% VFSUX Vanguard Short-Term Corp Adm Fund 31541,730
Intermediate-Term 7.17% PTTRX PIMCO Total Return Instl Fund 412581508
7.19% PTRQX Prudential Total Return Bond Q 4,270,668
Cash 2.70% Range: 0%-20% 156045722
2.70% FGZXX First American Government Oblig Z 11604,722
TOTAL 100.00% $5953895409
H1GHMkRf1,._O PARS: Central Contra Costa Sanitary District
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CAPITAL MANAGEMENT
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Selected Period Performance
CCCSD - OPEB
Period Ending: 06/30/2018
Year Inception
to Date to Date
Sector 3 Months (6 Months) 1 Year 3 Years 5 Years (108 Months)
Cash Equivalents .40 .71 1.18 .59 .36 .26
Lipper Money Market Funds Index .39 .66 1.09 .49 .29 .17
Fixed Income ex Funds -.18 -1.64
Total Fixed Income -.24 -1.56 -.28 1.87 2.24 4.26
BC US Aggregate Bd Index -1.62 -.40 1.72 2.27 3.57
Total Equities 2.32 1.50 12.16 9.24 11.12 14.73
Large Cap Funds 3.17 1.96 13.09 10.45 12.87 15.46
S&P 500 Composite Index 2.65 16.50
Mid Cap Funds 2.46 1.99 11.11 8.04 10.10
Russell Midcap Index 2.82 2.35 12.22 17.92
Small Cap Funds 7.45 7.78 18.67 12.50 14.23 19.38
Russell 2000 Index 7.75 7.66 17.57 10.96 12.46 17.39
International Equities -4.79 -4.70 6.12 5.15 6.06 9.64
MSCI EAFL Index -1.24 -2.75 6.84 4.90 6.44 10.02
MSCI EM Free Index -7.96 -6.66 8.20 5.60 5.01 9.63
Real Estate- ETFs /Sctr Fds 8.91 -.10
Wilshire REIT Index 9.73 1.52 3.88 7.84 8.42 19.26
Total Managed Portfolio 1.08 .02 5.96 5.63 6.55 9.45
CCCSD OPER 1.46 .61 6.42 5.96 6.84
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.
WO PARS: Central Contra Costa Sanitary District
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Fixed Income Portfolio: Statistics
As of Second Quarter 2018
CCCSD BC Aggregate Bond
OPEB Index
Weighted Average Maturity 6.74 years 8.08 years
Effective Duration 5.30 years 5.99 years
Average Coupon 3.09% 3.10%
Yield to Maturity 3.41% 3.28%
Average Quality Aa3 Aa2
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Fixed Income Portfolio: Sectors
As of Second Quarter 2018
50.0%
45.0% -
40.0%
35.0%
30.0%
250%
20.0%
15.0%
1U%
5.0%
■
0.0% Cash Trea su ry Agency Corp Non-Corp M BS CM0 ABS CMBS
m CCCSD OPE 0-01% 24.9% 0-0% 46.6% 0-0% 19.7% 0-0% 8.9% 0.0%
m Barclays U.S.Aggregate Bond Index 0.0% 38.9% 1-6% 251% 4.9 P/o 26.8% 0-0% 0.6% 2,0%
PARS: Central Contra Costa Sanitary District
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Fixed Income Portfolio: Effective Duration and Effective Maturity
As of Second Quarter 2018
Effective Duration Effective Maturity
30% -
35% -
,3 0?,-�
20% -
15%
10%
5% 5%
0%
0-1 Yrs- 1-3 Yrs, 3-5 Yrs. 5-7 Yrs- 7-10 10+ 0% til-
Yrs- Yrs. 0-1 Yr. 1-3Yrs. 3-SYrs. 5-7Yrs. 7-'10Yrs. 10+`yrs.
CCCSO ODES 5.77% 19-21% 29.98% 23,85% 10.01% 1118% m CCCSD,CPEB 5.77% 18.24% 25.87% 14.74% 22-33% 13.05%
BC Aggregate Bond Index 0.17% 23.50% 31.39% 22.52% 7.71% 14.72% BC Aggregate Bond Index 0.03% 21.50% 19.73% 22.06% 20.64% 16.04%
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Holdings-Reporting as of Trade Date
Account:6746055900- PARS/CCCSD 115P-OPEB
As of:30-Jun-2018
Asset Type Asset Short Name Ticker Shares/Units Price Market Value
Cash&Cash Equivalents CASH (316,763.3700) $1.0000 ($316,763.37)
Cash&Cash Equivalents FIRST AMERN GOVT OBLIG FD CL Z#3676 FGZXX 11921,485.7800 $1.0000 $1,921,485.78
Funds DODGE&COX I NTL STOCK FD(CLSD)#1048 DODFX 24,079.1140 $43.0100 $1,035,642.69
Funds HARTFORD SCHRODR MKTS EQ CL Y#1842 HHHYX 112,036.0630 $15.6400 $1,752,244.03
Funds ISHARES RUSSELL MIDCAP ETF IWR 13,958.0000 $212.1400 $2,961,050.12
Funds ISHARES S&P 500 GROWTH ETF IVW 15,608.0000 $162.6100 $2,538,016.88
Funds ISHARES S&P 500 VALUE ETF IVE 37,627.0000 $110.1300 $4,143,861.51
Funds ISHARES TR CORE S&P500 ETF IVV 23,840.0000 $273.0500 $6,509,512.00
Funds MFS INTERNATIONAL GROWTH R6#4805 MGRDX 30,404.5010 $34.1600 $1,038,617.75
Funds NATIONWIDE BAI LARD INTL EQ 1#6071 NWHMX 107,578.5550 $8.3700 $900,432.51
Funds PI MCO TOTAL RETURN I N STL #35 PTTRX 427,132.2100 $9.9700 $4,258,508.13
Funds PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 303,099.2430 $14.0900 $4,270,668.33
Funds T ROWE PRICE NEW HORIZONS FD#532 PRJIX 32,048.4750 $60.5600 $1,940,855.65
Funds UNDISCOVERED MGRS BEHAVRLVAL 11368 UBVLX 45,849.7160 $72.4500 $3,321,811.92
Funds VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 33,700.1620 $78.7900 $2,655,235.76
Funds VANGUARD REAL ESTATE ETF V N Q 11,727.0000 $81.4500 $955,164.15
Funds VNGRD ST TERM INVMT GRADE ADM #539 VFSUX 338,597.5470 $10.4600 $3,541,730.34
Corporate Obligations AMERICAN EXPRESS CO 2.500% 8/01/22 AEC2522 75,000.0000 95.895% $71,921.25
Corporate Obligations AMERICAN EXPRESS CO 3.000% 10/30/24 AEC3024 85,000.0000 95.415% $81,102.75
Corporate Obligations AMERICAN I NTL GROUP 2.300% 7/16/19 AIG2319 150,000.0000 99.395% $149,092.50
Corporate Obligations AMXCA 2017-3 A 1.770%11/15/22 A2A1122 200,000.0000 98.038% $196,076.00
Corporate Obligations AMXCA 2017-6 A 2.040% 5/15/23 A2A2023 100,000.0000 97.979% $97,979.00
Corporate Obligations AN HEUSER-BUSC H I N BEV 3.650% 2/01/26 A133626 195,000.0000 97.894% $190,893.30
Corporate Obligations AT&T INC NTS 4.125% 2/17/26 AIN4126 220,000.0000 97.742% $215,032.40
Corporate Obligations AVALON BAY CMNTYS I NC 3.450% 6/01/25 AC13425 155,000.0000 97.477% $151,089.35
Corporate Obligations BB&T CORP BDS 2.450% 1/15/20 BCB2420 120,000.0000 99.023% $118,827.60
Corporate Obligations BB&T CORP SR MTN 2.850%10/26/24 BCS2824 110,000.0000 94.884% $104,372.40
Corporate Obligations BECTON DICKINSON BDS 2.133% 6/06/19 BDB2119 80,000.0000 99.512% $79,609.60
Corporate Obligations BK OF AMERICA CORP 4.000% 4/01/24 BOA4024 220,000.0000 100.876% $221,927.20
Corporate Obligations BK OF MONTREAL MTN 2.350% 9/11/22 BOM2322 205,000.0000 95.714% $196,213.70
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Holdings-Reporting as of Trade Date
Account:6746055900- PARS/CCCSD 115P-OPEB
As of:30-Jun-2018
Asset Type Asset Short Name Ticker Shares/Units Price Market Value
Corporate Obligations BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 170,000.0000 97.743% $166,163.10
Corporate Obligations BK OF NY MELLON MTN 2.050% 5/03/21 BON2021 180,000.0000 96.881% $174,385.80
Corporate Obligations BOSTON PPTYS LTD PAR 2.750%10/01/26 BXP26A 180,000.0000 90.160% $162,288.00
Corporate Obligations CAPITAL ONE BK USA 3.375% 2/15/23 COB3323 220,000.0000 97.406% $214,293.20
Corporate Obligations CC CCIT 2014-A1 2.880% 1/23/23 CC22823A 275,000.0000 99.711% $274,205.25
Corporate Obligations CDN IMPERIAL BK 2.550% 6/16/22 CI B2522 170,000.0000 96.718% $164,420.60
Corporate Obligations CITIGROUP INC 3.200%10/21/26 C133226 220,000.0000 92.993% $204,584.60
Corporate Obligations COMCAST CORP SR NT 3.375% 8/15/25 CCS3325 190,000.0000 95.923% $182,253.70
Corporate Obligations CONCHO RES INC 4.300% 8/15/28 CR14328 80,000.0000 100.233% $80,186.40
Corporate Obligations CVS HEALTH CORP 5.050% 3/25/48 CHC5048 155,000.0000 101.770% $157,743.50
Corporate Obligations DOW CHEM CO NTS 4.375%11/15/42 DCC4342 155,000.0000 94.194% $146,000.70
Corporate Obligations ECOLAB INC SR NT 2.375% 8/10/22 EIS2322 80,000.0000 96.400% $77,120.00
Corporate Obligations EL PASO ENERGY CORP 7.800% 8/01/31 EP31 115,000.0000 120.964% $139,108.60
Corporate Obligations ENBRIDGE INC 2.900% 7/15/22 E122922 150,000.0000 97.128% $145,692.00
Corporate Obligations ENTERPRISE PRODS NT 3.350% 3/15/23 EPN3323 175,000.0000 98.531% $172,429.25
Corporate Obligations ERP OVER LTD PRTN NT 4.625%12/15/21 EOL4621 170,000.0000 103.655% $176,213.50
Corporate Obligations FIFTH THIRD BANCORP 2.600% 6/15/22 FTB2622 100,000.0000 96.805% $96,805.00
Corporate Obligations FORD MTR CO NTS 7.450% 7/16/31 F31 130,000.0000 117.504% $152,755.20
Corporate Obligations GEN ERAL MTRS FI N L CO 4.000% 10/06/26 GMF4026 150,000.0000 94.804% $142,206.00
Corporate Obligations GEORGIA PAC CORP 8.000% 1/15/24 GPC8024 140,000.0000 120.742% $169,038.80
Corporate Obligations HALLI BURTON CO BDS 3.800%11/15/25 HCB3825 180,000.0000 99.285% $178,713.00
Corporate Obligations HAROT 2017-3 A3 1.790% 9/20/21 H2A1721B 150,000.0000 98.401% $147,601.50
Corporate Obligations HAROT 2017-4 A3 2.050%11/22/21 H2A2121A 150,000.0000 98.643% $147,964.50
Corporate Obligations HEWLETT PACKARD CO NT4.375% 9/15/21 HPC4321 150,000.0000 102.572% $153,858.00
Corporate Obligations HSBC HLDGS 2.950% 5/25/21 HSBC21C 80,000.0000 98.453% $78,762.40
Corporate Obligations JOHNSON &JOHNSON 3.625% 3/03/37 130,000.0000 97.720% $127,036.00
Corporate Obligations JPMORGAN CHASE NTS 3.200% 1/25/23 JCN3223 220,000.0000 98.211% $216,064.20
Corporate Obligations KEY BANK NA 2.250% 3/16/20 KBN2220 100,000.0000 98.671% $98,671.00
Corporate Obligations MACY'S RETAIL HLDGS 4.375% 9/01/23 MRH4323 150,000.0000 100.314% $150,471.00
Corporate Obligations MI DAMERICAN ENERGY 3.750% 11/15/23 ME33723 190,000.0000 101.208% $192,295.20
,aH1G PARS: Central Contra Costa Sanitary District
9
CAPITAL MANAGEMENT
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Holdings-Reporting as of Trade Date
Account:6746055900- PARS/CCCSD 115P-OPEB
As of:30-Jun-2018
Asset Type Asset Short Name Ticker Shares/Units Price Market Value
Corporate Obligations NAROT 2016-C A3 1.180% 1/15/21 N2A1121 26,497.9100 98.885% $26,202.46
Corporate Obligations NAROT 2017-B A3 1.750%10/15/21 N2A0121 300,000.0000 98.406% $295,218.00
Corporate Obligations NORFOLK SOUTHERN COR 4.150% 2/28/48 NSC4148 100,000.0000 96.194% $96,194.00
Corporate Obligations ORACLE CORP NTS 2.950%11/15/24 OCN2924 150,000.0000 96.412% $144,618.00
Corporate Obligations PETRO-CDA NT 6.800% 5/15/38 SU/38 120,000.0000 127.453% $152,943.60
Corporate Obligations PNC FI N L SVCS GROUP 3.150% 5/19/27 PFS3127 100,000.0000 95.058% $95,058.00
Corporate Obligations QUEST DIAGNOSTICS BD 3.500% 3/30/25 QDB3525 150,000.0000 96.257% $144,385.50
Corporate Obligations ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 80,000.0000 97.142% $77,713.60
Corporate Obligations SHIRE ACQ INV I RELAN D2.875% 9/23/23 SA 12823 155,000.0000 94.080% $145,824.00
Corporate Obligations TA OT 2016-D A3 1.230%10/15/20 T2A1220A 125,000.0000 99.163% $123,953.75
Corporate Obligations TA OT 2017-D A3 1.930% 1/18/22 T2A2222 150,000.0000 98.410% $147,615.00
Corporate Obligations TI ME WARN ER CABLE NT 7.300% 7/01/38 TWC7338 125,000.0000 113.351% $141,688.75
Corporate Obligations UNTD AI R 2013-1 4.300% 8/15/25 UA24325 82,740.5400 101.910% $84,320.88
Corporate Obligations VERIZON COMM SR NT 4.125% 3/16/27 VC44127 60,000.0000 98.964% $59,378.40
Corporate Obligations VERIZON COMMUN ICATIO 5.250% 3/16/37 120,000.0000 102.700% $123,240.00
Corporate Obligations WELLS FARGO&CO NEW 3.000% 10/23/26 WFC3026A 220,000.0000 92.334% $203,134.80
Government Obligations FGLMC#E03097 2.500% 3/01/27 E03097F 219,723.9500 97.817% $214,927.38
Government Obligations FGLMC#G60453 3.000% 1/01/46 G60453F 229,335.1600 97.169% $222,842.68
Government Obligations FGLMC#J 30401 3.000% 1/01/30 J30401F 209,438.3000 99.806% $209,031.99
Government Obligations FGLMC#Q13204 3.000%11/01/42 Q13204F 156,995.5000 97.595% $153,219.76
Government Obligations FHLMC G14702 2.5000%3/1/2023 G14702F 187,464.1600 99.475% $186,479.97
Government Obligations FHLMC G15252 3.0000%12/1/2029 G15252F 170,756.9800 99.806% $170,425.71
Government Obligations FHLMC V60586 3.0000%8/1/2029 V60586F 215,869.9700 99.806% $215,451.18
Government Obligations FNMA A L8174 3.5000%2/1/2046 AL8174A 357,584.6800 99.798% $356,862.36
Government Obligations FNMA A L8924 3.0000%12/1/2030 AL8924A 307,040.7300 99.985% $306,994.67
Government Obligations FNMA AL9376 3.0000%8/1/2031 AL9376A 170,875.8100 99.516% $170,048.77
Government Obligations FNMA AS7729 3.0000%8/1/2046 AS7729A 256,159.6800 97.157% $248,877.06
Government Obligations FNMA AT0293 3.0000%3/1/2043 AT0293A 158,690.1400 97.741% $155,105.33
Government Obligations FNMA BC 1486 3.0000%8/1/2046 BC1486A 226,386.0000 97.157% $219,949.85
Government Obligations FNMA MA2779 2.0000%10/1/2026 MA2779A 176,466.3200 97.316% $171,729.96
,aH1G PARS: Central Contra Costa Sanitary District
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CAPITAL MANAGEMENT
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Holdings-Reporting as of Trade Date
Account:6746055900- PARS/CCCSD 115P-OPEB
As of:30-Jun-2018
Asset Type Asset Short Name Ticker Shares/Units Price Market Value
Government Obligations FNMA MA3313 3.500% 3/01/33 MA3313A 135,693.6900 101.309% $137,469.92
Government Obligations US TREAS BDS 3.625% 8/15/43 UTB3643 615,000.0000 111.469% $685,534.35
Government Obligations US TREAS NTS 1.250%12/15/18 UTN1218C 700,000.0000 99.609% $697,263.00
Government Obligations US TREAS NTS 1.500%11/30/19 UTN1519E 450,000.0000 98.652% $443,934.00
Government Obligations US TREAS NTS 1.625% 4/30/23 UTN1623 220,000.0000 95.008% $209,017.60
Government Obligations US TREAS NTS 1.750% 2/15/26 UTN1726 175,000.0000 91.742% $160,548.50
Government Obligations US TREAS NTS 1.875% 1/31/22 UTNO022B 475,000.0000 97.281% $462,084.75
Government Obligations US TREAS NTS 2.000% 2/15/25 UTN2025 150,000.0000 95.106% $142,659.00
Government Obligations US TREAS NTS 2.000% 5/31/24 UTN2024A 580,000.0000 95.711% $555,123.80
Government Obligations US TREAS NTS 2.375% 5/15/27 UTN2327 350,000.0000 96.301% $337,053.50
Government Obligations US TREAS NTS 2.375%12/31/20 UTN2320 130,000.0000 99.481% $129,325.30
Government Obligations US TREAS NTS 3.125% 5/15/21 UTN3221 230,000.0000 101.379% $233,171.70
Municipal Obligations LOS ANGELES REV BDS 6.574% 7/01/45 LAR6545 100,000.0000 141.247% $141,247.00
Subtotals
Cash&Cash Equivalents $1,604,722.41
Funds $41,823,351.77
Government Obligations $7,195,132.09
Municipal Obligations $141,247.00
Corporate Obligations $8,624,955.79
Total $59,389,409.06
PARS: Central Contra Costa Sanitary District
,aH1GHMARJN,-
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CAPITAL MANAGEMENT
r%U�JUZ-)L 4 11 4u 1 U IVANeg u I M eeti Parket- Pag-e�of 177
CCCSD - Pension Investment Summary Since Inception
Asset Allocation Beginning Value $3,359,081.81
Contributions 1,999,498.05
Total Assets: $5,375,218 Withdrawals -8,085.99
Gain (Loss) -45,563.73
Period Ending: 6-30-2018 Interest and Dividends 70,369.26
Net Accrued Income 21,513.80
2Q18 Return: 0.48% Ending Market Value $5,3967813.20*
Inception-to-Date Return: 1 .31
Inception Date:9-1-2017
Cash Equity
$414,D12 $ 1,570,849
8.82°Io 29.22°/0
V
Fixed Income
$3,330,356
61.95°/0
* Ending Market Value differs from total market value on page 13 due to differences in reporting methodology. The above ending market value includes
accruals.
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12
CAPITAL MANAGEMENT
I XU�j U,--)L 4 11 4eg Meeti�ng-#gettda-Packet- Pag-e�of 177
Asset Allocation - Central Contra Costa Sanitary District Pension
As of Second Quarter 2018
Current Asset Allocation Investment Vehicle
Equity 29.22% Range: 20%-40% 155705849
Large Cap Core 4.98% IVV iShares Core S&P 500 267,862
3.64% VGIAX Vanguard Growth & Income Adm 195,543
Large Cap Value 4.49% IVE iShares S&P 500 Value 241,185
Large Cap Growth 2.05% IVW iShares S&P 500 Growth 110,250
Mid Cap Core 2.49% IW R iShares Russell MidCap Index Fund 133,648
Small Cap Value 3.51% UBVLX Undiscovered Mgrs Behavioral Value Inst 188,469
Small Cap Growth 1.57% PRJIX T. Rowe Price New Horizons Fund 1 84,128
International Core 1.26% NWHMX Nationwide Bailard Intl Equities 1 67,921
International Value 1.35% DODFX Dodge & Cox International Stock Fund 72,678
International Growth 1.36% MGRDX MFSO International Growth Fund Class R6 73,047
Emerging Markets 1.78% HHHYX Hartford Schroders Emerging Mkts Eq Y 95,638
Real Estate 0.75% VNQ Vanguard REIT ETF 40,481
Fixed Income 61.96% Range: 50%-80% 353305356
41.76% Core Fixed Income Portfolio 232443529
Short-Term 6.52% VFSUX Vanguard Short-Term Corp Adm Fund 350,531
Intermediate-Term 6.84% PTTRX PIMCO Total Return Instl Fund 367,461
6.84% PTRQX Prudential Total Return Bond Q 367,836
Cash 8.82% Range: 0%-20% 4745012
8.82% FGZXX First American Government Oblig Z 474,012
TOTAL 100.00% $553755218
HmPiRDLO PARS: Central Contra Costa Sanitary District
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CAPITAL MANAGEMENT
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Selected Period Performance
PARS/CCCSD 115P - PENSION
Account 6746055901
Period Ending: 06/30/2018
Year Inception
to Date to Date
Sector 3 Months (6 Months) (10 Months)
Cash Equivalents .41 .72 1.03
i inner MnnPv Market Funds Index
Fixed Income ex Funds -.18 -1.57 -1.50
Total Fixed Income -.22 -1.51 -1.51
BC US Aggregate Bd Index -1.62 -1.71
Total Equities 2.17 1.31 9.11
Large Cap Funds 3.08 1.89 10.71
S&P 500 Composite Index 3.43 2.65 11.73
Mid Cap Funds 2.63 2.29 10.82
Russell Midcap Index 2.82 2.35 11.56
Small Cap Funds 7.50 7.25 18.02
Russell 2000 Index 7.75 7.66 18.20
International Equities -4.65 -4.62 1.08
MSCI EAFE Index -1.24 -2.75 3.89
MFC/EM Free Index -7.96 -6.66 -.11
Real Estate- ETFs/Sctr Fds 8.97 .06 .91
Wilshire REIT Index 9.73 1.52 3.16
Total Managed Portfolio .48 -.64 1.31
CCCSD Pension .84 -.09 2.32
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.
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CAPITAL MANAGEMENT
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Fixed Income Portfolio: Statistics
As of Second Quarter 2018
CCCSD BC Aggregate Bond
Pension Index
Weighted Average Maturity 6.74 years 8.08 years
Effective Duration 5.30 years 5.99 years
Average Coupon 3.09% 3.10%
Yield to Maturity 3.41% 3.28%
Average Quality Aa3 Aa2
H IGHMARK� PARS: Central Contra Costa Sanitary District
-.ANWMI 14
CAPITAL MANAGEMENT
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Fixed Income Portfolio: Sectors
As of Second Quarter 2018
50.0%
45.0% -
4M%
35.0%
30.0%
25.0%
20,0%
15.0%
I U%
5.0%
0,0%
Cash Tree su ry Agency Corp Non-Corp IVIIBS CIVIO ABS CIVIBS
m ES Pension Q.0% 24.9% 0-0% 46.6% 0-10% 19.7% 0,0% 8.9% 0-0%
w Barclays U.S,Aggregate Bond Index 0-0% 38.9% 1_6% 25.2% 4_9% 26.8% 0.0% 0.6% 2_0%
PARS: Central Contra Costa Sanitary District
-.ANWMI H
IGH MARDL 15
CAPITAL MANAGEMENT
A
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Fixed Income Portfolio: Effective Duration and Effective Maturity
As of Second Quarter 2018
Effective Duration Effective Maturity
30%
25% -
20% -
20% -
15% -
15% -
10% -
10%
51% 5%
0 OA
0-1 Yrs. 1-3 Yrs, 3-5 Yrs. 5-7 Yrs. 7-10 10+ 0%
Yrs- Yrs-
0-1 Yr, 1- Yrs. 3-SYrs. 5- r , 7-10Yrs_ 10+Yrs.
m CCC,9 D Pension 5-51% 17-03% 32-30% 27.42% 9-13% 8-620% m CCCSD Pension 5.51% 1&02% 26.86% 19.60% 22-24% 10.79%
BC Aggregate Bond Index 0.17% 23.50% 31.39% 22.52% 7,71% 1432% BC Aggregate Bond Index 0.03% 21.50% 19.73% 22.06% 20.64% 16.04%
i
Di
i
l PARS: CentraContra Costa Sanitary District
GHMARDL 16
CAPITAL MANAGEMENT
A
11 4U 1 U vxegu F'NA1NK'--AE--- (1-1funimittee Meetiliq /-%,, Parket- Page-�of 177
Holdings- Reporting as of Trade Date
Account:6746055901-PARS/CCCSD 115P-PENSION
As of:30-Jun-2018
Asset Type Asset Short Name Ticker Shares/Units Price Market Value
Cash&Cash Equivalents CASH (127,901.3600) $1.0000 ($127,901.36)
Cash&Cash Equivalents FIRST AMERN GOVT OBLIG FD CL Z#3676 FGZXX 6011913.8400 $1.0000 $601,913.84
Funds DODGE&COX I NTL STOCK FD(CLSD)#1048 DODFX 11689.7930 $43.0100 $72,678.00
Funds HARTFORD SCHRODR MKTS EQ CL Y#1842 HHHYX 61114.9310 $15.6400 $95,637.52
Funds ISHARES RUSSELL MIDCAP ETF IWR 630.0000 $212.1400 $133,648.20
Funds ISHARES S&P 500 GROWTH ETF IVW 678.0000 $162.6100 $110,249.58
Funds ISHARES S&P 500 VALUE ETF IVE 21190.0000 $110.1300 $241,184.70
Funds ISHARES TR CORE S&P500 ETF IVV 981.0000 $273.0500 $267,862.05
Funds MFS INTERNATIONAL GROWTH R6#4805 MGRDX 21138.3860 $34.1600 $73,047.27
Funds NATIONWIDE BAI LARD INTL EQ 1#6071 NWHMX 81114.8040 $8.3700 $67,920.91
Funds PI MCO TOTAL RETURN I N STL #35 PTTRX 36,856.6550 $9.9700 $367,460.85
Funds PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 26,106.1400 $14.0900 $367,835.51
Funds T ROWE PRICE NEW HORIZONS FD#532 PRJIX 11389.1690 $60.5600 $84,128.07
Funds UNDISCOVERED MGRS BEHAVRLVAL 11368 UBVLX 21601.3670 $72.4500 $188,469.04
Funds VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 21481.8250 $78.7900 $195,542.99
Funds VANGUARD REAL ESTATE ETF VNQ 497.0000 $81.4500 $40,480.65
Funds VNGRD ST TERM INVMT GRADE ADM #539 VFSUX 33,511.5500 $10.4600 $350,530.81
Corporate Obligations ABBOTT LABS SR NT 3.750%11/30/26 ALS3726 20,000.0000 98.292% $19,658.40
Corporate Obligations AMERICAN EXPRESS CO 2.500% 8/01/22 AEC2522 51000.0000 95.895% $4,794.75
Corporate Obligations AMERICAN EXPRESS CO 3.000%10/30/24 AEC3024 20,000.0000 95.415% $19,083.00
Corporate Obligations AMERICAN INTL GROUP 2.300% 7/16/19 AIG2319 20,000.0000 99.395% $19,879.00
Corporate Obligations AMXCA 2017-3 A 1.770%11/15/22 A2A1122 25,000.0000 98.038% $24,509.50
Corporate Obligations AN HEUSER-BUSC H I N BEV 3.650% 2/01/26 A133626 25,000.0000 97.894% $24,473.50
Corporate Obligations AT&T INC NTS 4.125% 2/17/26 AIN4126 25,000.0000 97.742% $24,435.50
Corporate Obligations AVALON BAY CMNTYS I NC 3.450% 6/01/25 AC13425 20,000.0000 97.477% $19,495.40
Corporate Obligations BB&T CORP BDS 2.450% 1/15/20 BCB2420 15,000.0000 99.023% $14,853.45
Corporate Obligations BB&T CORP SR MTN 2.850%10/26/24 BCS2824 10,000.0000 94.884% $9,488.40
Corporate Obligations BECTON DICKINSON BDS 2.133% 6/06/19 BDB2119 20,000.0000 99.512% $19,902.40
Corporate Obligations BK OF AMERICA CORP 4.000% 4/01/24 BOA4024 25,000.0000 100.876% $25,219.00
Corporate Obligations BK OF MONTREAL MTN 2.350% 9/11/22 BOM2322 20,000.0000 95.714% $19,142.80
,aH1G PARS: Central Contra Costa Sanitary District
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CAPITAL MANAGEMENT
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Holdings- Reporting as of Trade Date
Account:6746055901-PARS/CCCSD 115P-PENSION
As of:30-Jun-2018
Asset Type Asset Short Name Ticker Shares/Units Price Market Value
Corporate Obligations BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 20,000.0000 97.743% $19,548.60
Corporate Obligations BK OF NY MELLON MTN 2.050% 5/03/21 BON2021 20,000.0000 96.881% $19,376.20
Corporate Obligations BOSTON PPTYS LTD PAR 2.750%10/01/26 BXP26A 20,000.0000 90.160% $18,032.00
Corporate Obligations CAPITAL ONE BK USA 3.375% 2/15/23 COB3323 25,000.0000 97.406% $24,351.50
Corporate Obligations CC CCIT 2014-A1 2.880% 1/23/23 CC22823A 52,000.0000 99.711% $51,849.72
Corporate Obligations CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 20,000.0000 96.718% $19,343.60
Corporate Obligations CELGENE CORP NT 3.250% 2/20/23 CC33223 25,000.0000 97.686% $24,421.50
Corporate Obligations CIT 2012-4A A 1.580% 8/16/21 C2A1521B 30,000.0000 98.742% $29,622.60
Corporate Obligations CITIGROUP INC 3.200%10/21/26 C133226 25,000.0000 92.993% $23,248.25
Corporate Obligations COMCAST CORP SR NT 3.375% 8/15/25 CCS3325 20,000.0000 95.923% $19,184.60
Corporate Obligations CONCHO RES INC 4.300% 8/15/28 CR14328 10,000.0000 100.233% $10,023.30
Corporate Obligations CVS HEALTH CORP 5.050% 3/25/48 CHC5048 20,000.0000 101.770% $20,354.00
Corporate Obligations DOW CHEM CO NTS 4.375%11/15/42 DCC4342 20,000.0000 94.194% $18,838.80
Corporate Obligations ECOLAB INC SR NT 2.375% 8/10/22 EIS2322 20,000.0000 96.400% $19,280.00
Corporate Obligations EL PASO ENERGY CORP 7.800% 8/01/31 EP31 20,000.0000 120.964% $24,192.80
Corporate Obligations EN BRIDGE INC 2.900% 7/15/22 E122922 20,000.0000 97.128% $19,425.60
Corporate Obligations ENTERPRISE PRODS NT 3.350% 3/15/23 EPN3323 20,000.0000 98.531% $19,706.20
Corporate Obligations ERP OVER LTD PRTN NT4.625%12/15/21 EOL4621 25,000.0000 103.655% $25,913.75
Corporate Obligations FIFTH THIRD BANCORP 2.600% 6/15/22 FTB2622 25,000.0000 96.805% $24,201.25
Corporate Obligations FORD MTR CO NTS 7.450% 7/16/31 F31 20,000.0000 117.504% $23,500.80
Corporate Obligations GEN ERAL MTRS FI N L CO 4.000% 10/06/26 GMF4026 15,000.0000 94.804% $14,220.60
Corporate Obligations GEORGIA PAC CORP 8.000% 1/15/24 GPC8024 20,000.0000 120.742% $24,148.40
Corporate Obligations HALLIBURTON CO BDS 3.800%11/15/25 HCB3825 20,000.0000 99.285% $19,857.00
Corporate Obligations HAR 2017-4A-4 2.210% 3/21/24 H222224 25,000.0000 98.199% $24,549.75
Corporate Obligations HAROT2017-4 A3 2.050%11/22/21 H2A2121A 20,000.0000 98.643% $19,728.60
Corporate Obligations HEWLETT PACKARD CO NT4.375% 9/15/21 HPC4321 20,000.0000 102.572% $20,514.40
Corporate Obligations HSBC HLDGS 2.950% 5/25/21 HSBC21C 20,000.0000 98.453% $19,690.60
Corporate Obligations JOHNSON &JOHNSON 3.625% 3/03/37 15,000.0000 97.720% $14,658.00
Corporate Obligations JPMORGAN CHASE NTS 3.200% 1/25/23 JCN3223 30,000.0000 98.211% $29,463.30
Corporate Obligations KEY BANK NA 2.250% 3/16/20 KBN2220 10,000.0000 98.671% $9,867.10
,aH1G PARS: Central Contra Costa Sanitary District
18
CAPITAL MANAGEMENT
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Holdings- Reporting as of Trade Date
Account:6746055901-PARS/CCCSD 115P-PENSION
As of:30-Jun-2018
Asset Type Asset Short Name Ticker Shares/Units Price Market Value
Corporate Obligations MACY'S RETAIL HLDGS 4.375% 9/01/23 MRH4323 20,000.0000 100.314% $20,062.80
Corporate Obligations MAGELLAN MIDSTREAM 5.000% 3/01/26 MM55026 25,000.0000 105.316% $26,329.00
Corporate Obligations MI DAMERICAN ENERGY 3.750% 11/15/23 ME33723 20,000.0000 101.208% $20,241.60
Corporate Obligations NORFOLK SOUTHERN COR 4.150% 2/28/48 NSC4148 10,000.0000 96.194% $9,619.40
Corporate Obligations ORACLE CORP NTS 2.950%11/15/24 OCN2924 25,000.0000 96.412% $24,103.00
Corporate Obligations PETRO-CDA NT 6.800% 5/15/38 SU/38 10,000.0000 127.453% $12,745.30
Corporate Obligations QUEST DIAGNOSTICS BD 3.500% 3/30/25 QDB3525 20,000.0000 96.257% $19,251.40
Corporate Obligations ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 20,000.0000 97.142% $19,428.40
Corporate Obligations SHIRE ACQ INV I RELAN D2.875% 9/23/23 SA 12823 20,000.0000 94.080% $18,816.00
Corporate Obligations TACIT 2016-D A3 1.230%10/15/20 T2A1220A 25,000.0000 99.163% $24,790.75
Corporate Obligations TACIT 2017-D A3 1.930% 1/18/22 T2A2222 25,000.0000 98.410% $24,602.50
Corporate Obligations TI ME WARN ER CABLE NT 7.300% 7/01/38 TWC7338 15,000.0000 113.351% $17,002.65
Corporate Obligations TRANSCONTI N ENTAL GAS 7.850% 2/01/26 TG77826 25,000.0000 121.194% $30,298.50
Corporate Obligations UNTD AIR 2013-1 4.300% 8/15/25 UA24325 24,822.1600 101.910% $25,296.26
Corporate Obligations VERIZON COMM SR NT 4.125% 3/16/27 VC44127 10,000.0000 98.964% $9,896.40
Corporate Obligations VERIZON COMMUNICATIO 5.250% 3/16/37 15,000.0000 102.700% $15,405.00
Corporate Obligations WELLS FARGO&CO NEW 3.000% 10/23/26 WFC3026A 30,000.0000 92.334% $27,700.20
Government Obligations FGLMC#E03097 2.500% 3/01/27 E03097F 36,620.6700 97.817% $35,821.24
Government Obligations FGLMC#G60453 3.000% 1/01/46 G60453F 39,540.5400 97.169% $38,421.15
Government Obligations FGLMC#J 30401 3.000% 1/01/30 J30401F 32,911.7400 99.806% $32,847.89
Government Obligations FGLMC G08701 3.000% 4/01/46 G08701F 32,173.6000 96.952% $31,192.95
Government Obligations FHLMC G15252 3.0000%12/1/2029 G15252F 38,944.5800 99.806% $38,869.03
Government Obligations FNMA#A B3678 3.500%10/01/41 AB3678A 46,513.5800 100.356% $46,679.17
Government Obligations FNMA AL9376 3.0000%8/1/2031 AL9376A 38,835.4100 99.516% $38,647.45
Government Obligations FNMA AS7729 3.0000%8/1/2046 AS7729A 44,165.4700 97.157% $42,909.85
Government Obligations FNMA BC 1486 3.0000%8/1/2046 BC1486A 43,535.7500 97.157% $42,298.03
Government Obligations FNMA MA2779 2.0000%10/1/2026 MA2779A 37,546.0300 97.316% $36,538.29
Government Obligations FNMA MA3313 3.500% 3/01/33 MA3313A 58,154.4400 101.309% $58,915.68
Government Obligations US TREAS BDS 3.625% 8/15/43 UTB3643 75,000.0000 111.469% $83,601.75
Government Obligations US TREAS NTS 1.250%12/15/18 UTN1218C 80,000.0000 99.609% $79,687.20
,aH1G PARS: Central Contra Costa Sanitary District
19
CAPITAL MANAGEMENT
eg u I M eeti P cket- 72 of 177
Holdings- Reporting as of Trade Date
Account:6746055901-PARS/CCCSD 115P-PENSION
As of:30-Jun-2018
Asset Type Asset Short Name Ticker Shares/Units Price Market Value
Government Obligations US TREAS NTS 1.500%11/30/19 UTN1519E 50,000.0000 98.652% $49,326.00
Government Obligations US TREAS NTS 1.625% 4/30/23 UTN1623 55,000.0000 95.008% $52,254.40
Government Obligations US TREAS NTS 1.875% 1/31/22 UTNO022B 55,000.0000 97.281% $53,504.55
Government Obligations US TREAS NTS 2.000% 2/15/25 UTN2025 25,000.0000 95.106% $23,776.50
Government Obligations US TREAS NTS 2.000% 5/31/24 UTN2024A 90,000.0000 95.711% $86,139.90
Government Obligations US TREAS NTS 2.125% 8/15/21 UTN2521 25,000.0000 98.453% $24,613.25
Government Obligations US TREAS NTS 2.250%11/15/25 UTN2225 30,000.0000 96.176% $28,852.80
Government Obligations US TREAS NTS 2.375% 5/15/27 UTN2327 50,000.0000 96.301% $48,150.50
Government Obligations US TREAS NTS 2.375%12/31/20 UTN2320 30,000.0000 99.481% $29,844.30
Subtotals
Cash&Cash Equivalents $474,012.48
Funds $2,656,676.15
Government Obligations $1,002,891.88
Corporate Obligations $1,241,637.08
Total $5,375,217.59
,aH1GHMARf11LPARS: Central Contra Costa Sanitary District
20
CAPITAL MANAGEMENT
1-%U U,-")L 4 11 4 U I U IVANeg u I M eeti P cket- r-c2ge I73 of 177
CENTRAL CONTRA COSTA SANITARY DISTRICT
For Period Ending June 30, 2018
3-Month YTD 1-Year 3-Year 5-Year
Fund Name Inception Return Rank Return Rank Return Rank Return Rank Return Rank
iShares Core S&P 500 ETF (4/17) 3.42 29 2.63 29 14.33 28 11.88 13 13.37 12
iShares S&P 500 Value ETF (4/17) 1.37 58 -2.29 80 7.43 68 8.66 47 10.27 44
Vanguard Growth & Income Adm (12/16) 3.60 21 2.88 21 15.15 16 11.88 13 13.57 8
iShares S&P 500 Growth ETF (4/17) 5.20 49 7.17 49 20.40 52 14.28 28 15.78 33
S&P 500 TR USD 3.43 -- 2.65 -- 14.37 -- 11.93 -- 13.42 --
iShares Russell Mid-Cap ETF (3/16) 2.78 50 2.26 44 12.15 46 9.39 38 12.03 29
Russe I I Mid Cap TR USD 2.82 -- 2.35 -- 12.33 -- 9.58 -- 12.22 --
Undiscovered Managers Behavioral Val L (9/16) 7.02 43 3.60 51 14.31 27 11.43 19 12.88 8
Russe I 12000 Value TR USD 8.30 -- 5.44 -- 13.10 -- 11.22 -- 11.18 --
T. Rowe Price New Horizons 1 8.28 50 15.07 20 28.51 20 16.63 7 17.65 4
Russe I 12000 Growth TR USD 7.23 -- 9.70 -- 21.86 -- 10.60 -- 13.65 --
Dodge& Cox International Stock -5.12 96 -7.15 99 0.50 98 2.06 93 5.78 62
Nationwide Bailard Intl Eqs R6 -5.95 99 -5.95 95 3.24 89 2.91 85 6.33 40
M FSO International Growth R6 2.37 8 1.15 23 12.33 30 9.43 12 8.27 30
MSCI EAF E NR USD -1.24 -- -2.75 -- 6.84 -- 4.90 -- 6.44 --
Hartford Schroders Emerging Mkts Eq Y -8.38 36 -6.07 30 9.85 20 7.51 13 5.91 18
MSCI EM Free -7.96 -- -6.66 -- 8.20 -- 5.60 -- 5.01
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.
PARS: Central Contra Costa Sanitary District
HIGHMARf',.-
21
CAPITAL MANAGEMENT
1-%U�jU,_")L 4 11 4Ur0_r'Veg u M eeti P� - In d r C29a 174 of 177
CENTRAL CONTRA COSTA SANITARY DISTRICT
For Period Ending June 30, 2018
3-Month YTD 7-Year 3-Ye a r 5-Year
Fund Name Inception Return Rank Return Rank Return Rank Return Rank Return Rank
Vanguard Real Estate ETF (4/17) 8.83 30 -0.01 71 2.29 72 7.53 42 7.91 49
Wilshire REIT Index 9.73 -- 1.52 -- 3.88 — 7.84 — 8.42 --
PIMCO Total Return Instl -0.44 76 -1.71 54 -0.12 32 2.10 28 2.49 34
PGIM Total Return Bond R6 (5/16) -0.53 84 -1.88 69 0.59 10 3.15 3 3.75 2
Vanguard Short-Term Investment-Grade Adm 0.20 65 -0.32 70 0.22 61 1.59 25 1.83 18
BBgBarc US Agg Bond TR USD -0.16 -- -1.62 -- -0.40 — 1.72 — 2.27 --
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.
� HIGHMARK� PARS: Central Contra Costa Sanitary District
22
CAPITAL MANAGEMENT
egul Meeti j--Parket- Paof 177