HomeMy WebLinkAbout05.a. Review and provide input on Highmark Capital Management Government Accounting Standards Board (GASB 45) Other Post-Employment Benefits (OPEB) Sub-Trust and Pension Sub-Trust Quarterly Reports (Third Quarter 2018) Page 1 of 28
Item S.a.
� CENTRAL SAN
CENTRAL CONTRA COSTA SANITARY DISTRICT
November 20, 2018
TO: FINANCE COMMITTEE
FROM: PHILIP LEIBER, 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 AND PENSION SUB-
TRUST QUARTERLY REPORTS (THIRD QUARTER 2018)
Attached for review are the most recent Highmark overview and GASB 45 OPEB Sub-Trust and Pension
Sub-Trust Reports.
Strategic Plan Tie-In
GOAL THREE:Be a Fiscally Sound and Effective Water Sector Utility
Strategy 1 - Conduct long-range financial planning, Strategy 2- Manage costs
ATTACHMENTS:
1. Highmark Overview of 3rd Quarter 2018 GASB 45 OPEB Sub-Trust Report
2. PARS Investment Report 3rd Quarter
November 20, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 128 of 159
Page 2 of 28
Attachment 1
HIGHMARfS °
CAPITAL MANAGEMENT
October 26, 2018
Phil Leiber
Director of Finance and Administration
Central Contra Costa Sanitary District
5019 Imhoff Place
Martinez, CA 94553-4392
RE: 3Q Quarter 2018 OPEB/Pension Report
Dear Mr. Leiber,
Amid a back drop of robust economic data and strong corporate earnings, U.S. investors
overcame concerns about an escalating trade war with China, an increasingly hawkish Fed, and
a flattening yield curve to drive the U.S. equity market, as measured by the S&P 500 Index, to its
best quarter since 2013. But with positive economic momentum in question outside of the U.S.,
equity markets overseas did not enjoy the same fate. The MSCI All Country World ex USA Index'
managed a modest total return of 0.7% for the third quarter, which was seven percentage points
behind the S&P 500. Further U.S. dollar strength contributed to the continuation of a streak of
four consecutive quarters where the domestic equity market outpaced its foreign counterparts.
Fiscal stimulus in the form of tax cuts to individuals and corporations has allowed the U.S.
economy to heat up while most international economies are cooling off. Consensus economic
forecasts2 expect to see the domestic economy to reaccelerate to 2.9% real growth this year from
1.5% and 2.2% in 2016 and 2017 respectively. Meanwhile, China's economy, which accounts for
roughly a third of global economic growth, is expected to slow from 6.9% in 2017 to 6.6% in
20183— its slowest pace since 1990. In reaction to the ongoing trade dispute with the U.S. and
upward dollar momentum, investors fled from China's local, domestic investor-dominated stock
market(known as"A-shares"), pushing it into bear market territory this year after falling over
24%4.
International stocks were not the only asset class that lagged U.S. stock prices. Commodities, as
measured by the Bloomberg Commodity Index, were another casualty of the strong U.S. dollar
and trade turmoil, falling -2% during the third quarter. Despite a stable oil market, falling prices for
agricultural products and metals weighed on returns, continuing a longer-term trend of negative
performance from the asset class.
After a difficult start to the year and despite help from narrowing credit spreads, domestic
investment grade bonds were unable to reclaim lost ground during the third quarter as the yield
curve flattened and moved higher. The yield on the bellwether 10-year Treasury Note closed in
on the recent highs set earlier in the year, settling 0.20% higher over the quarter. Meanwhile,
yield on the 2-year Note continued its seemingly relentless assent this year, moving 0.29% higher
to 2.81%5.
A continued flattening of the yield curve has been a source of concern for investors, since
inversions (defined as higher short-term rates relative to longer-term rates) have preceded every
1 A diversified benchmark of global equities outside of the U.S.
2 Bloomberg as of 10/3/2018
3 Bloomberg as of 10/3/2018
4 MSCI China A Net Return Index
5 Treasury.gov
November 20, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 129 of 159
Page 3 of 28
recession since World War 116. The widely watched 10-year minus 2-year yield spread continued
to narrow to a post-crisis low of 0.23% at the end of the quarter. However, many market
observers pointed to the wider 10-year Note minus 3-month T-bill spread of 0.85%7 as
contradictory evidence the economy was not nearing a recession.
Quarterly Economic Highlights
U.S. Growth: As expected, the U.S. economy saw a strong improvement in growth after a
relatively weak first quarter. Led by healthy consumer spending, real GDP grew at 4.2% in the
second quarter— its largest expansion since the third quarter of 20148.
Inflation: Headline inflation cooled off modestly in August(2.7%) after hitting, in July, its highest
year-over-year level (2.9%) since February 2012. The Fed's preferred measure of inflation, the
Core Personal Consumption Expenditures Index, remained above its 2% target in AuguSt.s,9
Fed Funds: In its September meeting, the Federal Open Market Committee (FOMC) continued
on its path of policy normalization by hiking the Fed Funds rate 0.25% to a range of 2.0% to
2.25%. The Fed is widely expected to raise rates another quarter point for the fourth time this
year in December.10
Employment: The U.S. economy hit its lowest level of unemployment(3.7%) since 1969 in
September. Despite a shrinking pool of available labor and the impact of Hurricane Florence, an
average of 190,000 new jobs per month were added during the quarter. Average hourly earnings
continued to grow at a solid 2.8% pace according to the latest report.9
Housing: Higher mortgage rates continued to weigh on the housing markets. According to
Bankrate.com, the national average 30-year fixed mortgage rate has climbed from 3.85% to
4.57% through the first nine months of the year. In August, the National Association of Realtors
(NAR) Pending Home Sales Index declined -2.5% on a year-over-year basis. Seven of the prior
eight months through August saw declines.7, 11,12
Energy: Oil supply constraints from OPEC and the reinstatement of U.S. sanctions on Iran were
largely offset by a stronger dollar. West Texas Intermediate futures ended the quarter at$73.25
per barrel -slightly below where it started. Correspondingly, gasoline prices remained roughly flat
at$2.87 per gallon.7, 13
Corporate Earnings: U.S. corporations continued to reap the spoils of tax reform. According to
Factset, the S&P 500 earnings per share growth rate for the second quarter(25%) beat
expectations by 5%. Tax benefits were only part of the story. Revenue growth was also robust,
accelerating from the first quarter's 8.8% year-over-year growth to 10.1% in the second quarter.14
6 Inverted yield curves have occurred without a proceeding recession
7 Bloomberg
s U.S. Bureau of Economic Analysis (BEA)
9 U.S. Bureau of Labor Statistics (BLS)
10 Federal Reserve
11 NAR
12 Bankrate.com
13 AAA
14 FactSet
November 20, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 130 of 159
Page 4 of 28
Consumer Sentiment: Unfazed by trade drama, The Conference Board Consumer Confidence
Index continued its longer-term upward trend reaching new cycle highs in September of 138.4.
The index is within striking distance of its all-time high of 144.7 set 18 years ago.7, 15
Progress and Peril
In pervious client reports, we broke down President Trump's multi-front trade war which has
remained the focal point of global financial markets for the bulk of 2018. As trade tensions
ratcheted up with China during the third quarter, the U.S. seemed to be in a peace-making mood
with its other economic adversaries. In August, Mexico was able to reach a deal to rewrite trading
terms with the U.S., thereby replacing the North American Free Trade Agreement or NAFTA,
which had long been criticized by President Trump as "the worst trade deal in the history of the
world."
With one domino down, investors became encouraged that others would follow and business as
usual would soon return to global trade. That assumption appeared to have some merit, as
Canada joined NAFTA's successor agreement, the United States-Mexico-Canada Agreement
(USMCA), at the eleventh hour as the quarter came to an end and before the Trump-imposed
deadline. The deal won't be officially signed until November 30th and requires congressional
approval, but financial markets welcomed the news of the trilateral accord. Although USMCA
looks a lot like NAFTA, there were some meaningful updates that should allow the President to
claim success for his political allies in Congress as the mid-term elections approach. Though
pundits have debated the significance of the changes versus the NAFTA accord, all seem to
agree that reaching an agreement at least partially reduces the dark cloud of protectionism that
had been hanging over financial markets.
Earlier in the quarter, the Trump administration had already called a cease-fire in its clash with
the European Union (EU) after meeting with European Commission President Jean-Claude
Juncker and agreeing to the basic outline of a deal with its second largest trading partner. While
details are still being worked out, it gives the U.S. a chance to refocus on the 800-pound gorilla:
China. On this front, peace will likely not come as quickly or as easily. The two parties are much
further apart in terms of what they want economically and how they view each other in the
geopolitical realm.
China's highly export-skewed trade with the U.S. dwarfs that of all of its other partners. President
Trump believes the trade imbalance and China's slowing economy give him the leverage to make
big demands on which he does not appear to be budging. From China's perspective, the U.S.
demands are excessive and it has been fighting fire with fire. Just before the two sides were to
resume talks in September, the President ordered a 10% tariff to be applied to $200 billion worth
of imports on top of the 25% tariff on $50 billion worth of goods already in place. The latest round
of tariffs are scheduled to increase to 25% after the end of the year. The impasse has global
investment implications and will continue to be one of the dominant issues facing capital markets
until a resolution is reached. We expect to see further escalation of disputes between the two
countries, meaning headlines will continue to influence sentiment and tariffs will begin to hit
corporate fundamentals as we move into 2019.
Plan Performance
The Central Contra Costa Sanitary District OPEB Plan returned 2.85% gross of investment fees
for the third quarter. The return was slightly ahead of the District's OPEB Plan Benchmark target
of 2.70%. The slight outperformance was mainly attributed to asset allocation decisions, as
15 The Conference Board
November 20, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 131 of 159
Page 5 of 28
opposed to any specific manager performance. The exception to this was the small cap
segment where both the small cap value fund (Undiscovered Managers Behavioral Value Fund)
and the T. Rowe Price New Horizons Fund generated performance that ranked in the top quartile
of their respective Morningstar peer universes. Outside of small cap, most asset class segments
were either in-line with benchmark targets, or in the case of large cap equity, international equity,
and REIT equity, returns lagged slightly. With the S&P500 Index (+7.71%) being the top
performing benchmark segment for the quarter, our slight overweight to large cap equity was
beneficial. Further, our underweight to REIT equity, underweight to developed international
equity, and underweight to emerging market equity all were additive to performance in the third
quarter.
The target asset allocation for the OPEB Plan did not change. We maintained a neutral equity
target of 50%, and a fixed income/cash allocation of 50%.
The Central Contra Costa Sanitary District Pension Plan returned 1.78% for the quarter, gross of
investment fees, which slightly exceeded the District's Plan benchmark target of 1.66%.
Performance contributions from the various asset class segments were similar to the OPEB Plan.
The target asset allocation did not change throughout the quarter. We maintained a neutral
equity target of 30%, and a fixed income/cash allocation of 70%.
Andrew Brown
November 20, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 132 of 159
Attachment 2
PARS: Central Contra Costa Sanitary District
OPEB and Pension Plan
Third Quarter 2018
Presented by
Andrew Brown, CFA
J
HIGHMARrs,we
CAPITAL MANAGEMENT
�dovembei 2"0, "o i"a Regmai FiiaxivcE Committee ivieeciiig�,geiida Backe[ Page-133 o159
CCCSD - OPEB Investment Summary Since Inception
Beginning Value $566,683.26
Asset Allocation Contributions 103,643,264.21
Withdrawals -63,704,286.30
Total Assets: $61,299,478 Gain (Loss) 91891,394.20
Interest and Dividends 10,902,445.21
Period Ending: 9-30-2018 Net Accrued Income 214,037.44
3Q18 Return: 2.85% Ending Market Value $61,513,538.02*
1 Year Return: 6.12%
Inception-to-Date Return: 9.51 °Io
Cash
Inception Date:4-1-2009 $1,534,553
Plan target rate of return: 6.25°/0 2.50%
Equity
$30,892,965
5D.4D°Io
Fixed Income J4
$28.871.961
47,10%
* 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
vembe -
Asset Allocation - Central Contra Costa Sanitary District OPEB
As of Third Quarter 2018
Current Asset Allocation Investment Vehicle
Equity 50.40% Range:40%-60% 30,892,965
Large Cap Core 11.38% IVV iShares S&P 500 Index Fund 679787683
4.52% VGIAX Vanguard Growth & Income Adm 21771,039
Large Cap Value 6.92% IVE iShares S&P 500 Value Fund 472407555
Large Cap Growth 4.27% IVW iShares S&P 500 Growth Fund 21618,395
Mid Cap Core 5.02% IW R iShares Russell MidCap Index Fund 370777739
Small Cap Value 5.71% UBVFX Undiscovered Managers Behavioral Val R6 31499,475
Small Cap Growth 3.28% PRJIX T. Rowe Price New Horizons Fund 1 270097325
International Core 1.48% VEA Vanguard FTSE Developed Markets ETF 909,362
International Value 1.75% DODFX Dodge & Cox International Stock Fund 170707090
International Growth 1.76% MGRDX MFS® International Growth Fund Class R6 11080,482
Emerging Markets 2.79% HHHYX Hartford Schroders Emerging Mkts Eq Y 177117047
Real Estate 1.51% VNQ Vanguard REIT ETF 926,771
Fixed Income 47.10% Range:40%-60% 285871,961
26.93% Core Fixed Income Portfolio 1675097667
Short-Term 6.04% VFSUX Vanguard Short-Term Corp Adm Fund 31704,031
Intermediate-Term 7.07% PTTRX PIMCO Total Return Instl Fund 473337843
7.05% PTRQX Prudential Total Return Bond Q 41324,420
Cash 2.50% Range: 0%-20% 15534,553
2.50% FGZXX First American Government Oblig Z 11534,553
TOTAL 100.00% $61)2995478
HIGHMARrs, PARS: Central Contra Costa Sanitary District
3
CAPITAL MANAGEMENT
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Selected Period Performance
CCCSD - OPEB
Period Ending: 9/30/2018
Year Inception
to Date to Date
3 Months (9 Months) 1 Year 3 Years 5 Years (114 Months)
Cash Equivalents .45 1.17 1.41 .74 .45 .30
Lipper Money Market Funds Index 1.11 1.33 .64 .38 .21
Fixed Income ex Funds .33 -1.31 -1.04
Total Fixed Income .27 -1.30 -.89 1.93 2.15 4.18
BBG Barclays US Aggregate Bd Index .02 -1.60 -1.22 1.31 2.16 43.41=
Total Equities 5.43 7.01 13.17 14.61 10.48 14.95
Large Cap Funds 7.49 9.60 17.00 16.06 12.83 15.91
lzP 500 Composite Index 7.71 17.91 17.3 13.95 17.04
Mid Cap Funds 4.95 7.04 13.50 13.69 9.46
Russell Midcap Index 5.00 7.46 13.98 14.52 11.65 18.02
Small Cap Funds 5.08 13.26 19.14 17.65 12.75 19.45
Russell 2000 Index 3.58 15.24 17.12 11.07 17.33
International Equities .22 -4.50 -.16 9.47 4.36 9.40
MSCI EAFE Index 1.35 -1.43 2.74 9.23 4.42 9.90
MSCI EM Free Index -1.09 -7.68 -.81 12.36 3.61 9.24
Real Estate- ETFs / Sctr Fds .48 .38 1.75
Wilshire REIT Index .72 2.25 3.99 7.08 9.25 18.80
Total Managed Portfolio 2.85 2.87 6.12 8.10 6.26 9.51
CCCSD OPER 2.70 3.33 6.38 8.31 6.65
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.
F PARS: Central Contra Costa Sanitary District
-..AH1GHMPSrS14
CAPITAL MANAGEMENT
November -P
Fixed Income Portfolio: Statistics
As of Third Quarter 2018
CCCSD BC Aggregate Bond
OPEB Index
Weighted Average Maturity 7.00 years 8.10 years
Effective Duration 5.44 years 6.01 years
Average Coupon 3.09% 3.14%
Yield to Maturity 3.52% 3.45%
Average Quality Aa3 Aa2
JHIGHMARrs,� PARS: Central Contra Costa Sanitary District
5
CAPITAL MANAGEMENT
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Fixed Income Portfolio: Sectors
As of Third Quarter 2018
50.0%
45.0%
4M%
35.00/6
30.0%
250%
20.0%
15.Q°16
10.0%
5.0%
0.011/0
Cash Treasury Agency Corp Non-Corp MBS CM0 ABS CMBS
*CC-CSD OPEB 0.0% 261% 0.0% 45.3% 0.8% 18.9% 0.0% 8.99'a 0.096
*Barc lay s U.S.Agg regate Bond Index 0.0% 39.3% 1.5% 25.3% 4.7% 26.7% 0,096 0.596 ZO%.
PARS: Central Contra Costa Sanitary District
HIGHMARI�� 6
CAPITAL MANAGEMENT
PO ---- ,--r-1h I A h I Ob A 7
-Nvvember/20, /_U18 Reywal Committee Meetiny /-%Yt=:11t1a-P&-czket---Page 138 af 159
Fixed Income Portfolio: Effective Duration and Effective Maturity
As of Third Quarter 2018
Effective Duration Effective Maturity
30% 30%
25% 25°Jo
20% 203'0
15% 15°Io
10% 10%
5% 50/0
0%
0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 10+ 4%
Yrs. Yrs. 0-1 Yr. 1-3 Yrs. 3-5 Yrs. 5.7 Yrs. 7-'€0 Yrs. 10+Yrs.
■CCCSD OPEB 2.11% 24.23% 26.98% 29.44% 6.64% 10.60% ■CCCSQ QPEB 2.11°/a 21.41% 25.64°/o 15.19% 23.70°!0 12.36°/0
BC Aggregate Bond Index 0.21% 23.58% 27.48% 26.52% 7.49% 14.72% BC Aggregate Bond Index 0.04°/0 21.69°/0 19.23°fo 21.48°/0 21.45% 16.'E'[
JHIGHMARK� PARS: Central Contra Costa Sanitary District
7
CAPITAL MANAGEMENT
mbe - r-CIYC 139 af 159
Holdings-Reporting as of Trade Date
Account:6746055900-PARS/CCCSD 115P-OPEB
As of:30-Sep-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Cash&Cash Equivalents CASH (27,911.1400) $1.0000 ($27,911.14)
Cash&Cash Equivalents FIRST AMERN GOVT OBLIG FD CL Z#3676 FGZXX 11562,463.8800 $1.0000 $1,562,463.88
Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 24,679.1930 $43.3600 $1,070,089.81
Equities HARTFORD SCHRODR MKTS EQ CL Y#1842 HHHYX 110,747.3770 $15.4500 $1,711,046.97
Equities ISHARES RUSSELL MIDCAP ETF IWR 13,958.0000 $220.5000 $3,077,739.00
Equities ISHARES S&P 500 GROWTH ETF IVW 14,779.0000 $177.1700 $2,618,395.43
Equities ISHARES S&P 500 VALUE ETF IVE 36,607.0000 $115.8400 $4,240,554.88
Equities ISHARES TR CORE S&P500 ETF IVV 23,840.0000 $292.7300 $6,978,683.20
Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 30,959.3820 $34.9000 $1,080,482.43
Equities T ROWE PRICE NEW HORIZONS FD#532 PRJIX 30,416.6730 $66.0600 $2,009,325.42
Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 46,903.5610 $74.6100 $3,499,474.69
Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 21,016.0000 $43.2700 $909,362.32
Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 32,539.2140 $85.1600 $2,771,039.46
Equities VANGUARD REAL ESTATE ETF VNQ 11,487.0000 $80.6800 $926,771.16
Fixed Income P I MCO TOTAL RETURN I N STL #35 PTTRX 437,320.1860 $9.9100 $4,333.,843.04
Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 309,772.2350 $13.9600 $4,324,420.40
Fixed Income VNGRD ST TERM INVMT GRADE ADM #539 VFSUX 354,452.6940 $10.4500 $3,704,030.65
Fixed Income CC CCIT 2014-A1 2.880% 1/23/23 CC22823A 275,000.0000 99.480% $273,570.00
Fixed Income HAROT 2017-3 A3 1.790% 9/20/21 H2A1721B 150,000.0000 98.574% $147,861.00
Fixed Income HAROT 2017-4 A3 2.050%11/22/21 H2A2121A 150,000.0000 98.837% $148,255.50
Fixed Income TA OT 2016-D A3 1.230% 10/15/20 T2A1220A 100,565.4700 99.311% $99,872.57
Fixed Income UNITED STATES TREAS 2.875% 8/15/28 UST2828A 195,000.0000 98.461% $191,998.95
Fixed Income US TREAS NTS 1.500%11/30/19 UTN1519E 450,000.0000 98.629% $443,830.50
Fixed Income US TREAS NTS 1.875% 1/31/22 UTN0022B 475,000.0000 96.731% $459,472.25
Fixed Income US TREAS NTS 2.000% 5/31/24 UTN2024A 580,000.0000 94.926% $550,570.80
Fixed Income WELLS FARGO&CO NEW 3.000%10/23/26 WFC3026A 220,000.0000 92.795% $204,149.00
Fixed Income ABBOTT LABS SR NT 3.750%11/30/26 ALS3726 180,000.0000 99.719% $179,494.20
Fixed Income AMERICAN EXPRESS CO 3.000%10/30/24 AEC3024 185,000.0000 95.520% $176,712.00
Fixed Income AMERICAN INTL GROUP 2.300% 7/16/19 AIG2319 150,000.0000 99.552% $149,328.00
Fixed Income AMXCA 2017-3 A 1.770%11/15/22 A2A1122 200,000.0000 98.153% $196,306.00
w 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-Sep-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Fixed Income A MX CA 2017-6 A 2.040% 5/15/23 A 2A 2023 100,000.0000 98.021% $98.,021.00
Fixed Income ANHEUSER-BUSCH INBEV 3.650% 2/01/26 A133626 195,000.0000 97.170% $189,481.50
Fixed Income AT&T INC NTS 4.125% 2/17/26 AIN 4126 220,000.0000 98.809% $217,379.80
Fixed Income AVALONBAY CMNTYS INC 3.450% 6/01/25 AC13425 155,000.0000 97.584% $151,255.20
Fixed Income BB&T CORP SR MTN 2.850% 10/26/24 BCS2824 210,000.0000 95.689% $200,946.90
Fixed Income BECTON DICKINSON BDS 2.133% 6/06/19 BDB2119 80,000.0000 99.407% $79,525.60
Fixed Income BK OF AMERICA CORP 4.000% 4/01/24 BOA4024 220,000.0000 101.000% $222,200.00
Fixed Income BK OF MONTREAL MTN 2.350% 9/11/22 BOM2322 205,000.0000 95.909% $196,613.45
Fixed Income BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 170,000.0000 97.566% $165,862.20
Fixed Income BK OF NY MELLON MTN 2.050% 5/03/21 BON2021 180,000.0000 97.009% $174,616.20
Fixed Income CAPITAL ONE BK USA 3.375% 2/15/23 COB3323 220,000.0000 97.298% $214,055.60
Fixed Income CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 170,000.0000 96.594% $164,209.80
Fixed Income CITIGROUP INC 3.200%10/21/26 C133226 220,000.0000 93.341% $205,350.20
Fixed Income COMCAST CORP SR NT 3.375% 8/15/25 CCS3325 190,000.0000 96.563% $183,469.70
Fixed Income CONCHO RES INC 4.300% 8/15/28 CR14328 80,000.0000 99.595% $79,676.00
Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 155,000.0000 102.284% $158,540.20
Fixed Income DOW CHEM CO NTS 4.375%11/15/42 DCC4342 155,000.0000 94.859% $147,031.45
Fixed Income ECOLAB INC SR NT 2.375% 8/10/22 EIS2322 80,000.0000 95.864% $76,691.20
Fixed Income EN BRIDGE INC 2.900% 7/15/22 E122922 150,000.0000 96.995% $145,492.50
Fixed Income ENTERPRISE PRODS NT 3.350% 3/15/23 EPN3323 175,000.0000 98.863% $173,010.25
Fixed Income ERP OVER LTD PRTN NT4.625%12/15/21 EOL4621 170,000.0000 103.097% $175,264.90
Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 208,253.3400 97.151% $202,320.20
Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 222,738.3800 96.067% $213,978.08
Fixed Income FGLMC#J 30401 3.000% 1/01/30 J30401F 200,362.7500 99.032% $198,423.24
Fixed Income FGLMC#Q13204 3.000% 11/01/42 Q13204F 151,262.8300 96.488% $145,950.48
Fixed Income FHLMC G08823 3.5000%7/1/2048 G08823F 160,889.1600 98.488% $158,456.52
Fixed Income FHLMC G14702 2.5000%3/1/2023 G14702F 172,301.1400 98.822% $170,271.43
Fixed Income FHLMC G15252 3.0000%12/1/2029 G15252F 162,540.2800 99.032% $160,966.89
Fixed Income F H LMC V60586 3.0000%8/1/2029 V 60586 F 202,202.8000 99.033% $200,247.50
Fixed Income FIFTH THIRD BANCORP 2.600% 6/15/22 FTB2622 100,000.0000 96.297% $96,297.00
HIGHMPSrslPARS: Central Contra Costa Sanitary District
8
CAPITAL MANAGEMENT
vembe -
Holdings-Reporting as of Trade Date
Account:6746055900-PARS/CCCSD 115P-OPEB
As of:30-Sep-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Fixed Income F N MA A L8174 3.5000%2/1/2046 A L8174A 343,861.9900 98.834% $339,852.56
Fixed Income F N MA A L8924 3.0000% 12/1/2030 A L8924A 292,569.0500 99.124% $290,006.15
Fixed Income F N MA A L9376 3.0000%8/1/2031 A L9376A 1611f 703.7000 98.869% $159,874.83
Fixed Income FN MA AS 7729 3.0000%8/1/2046 AS 7729A 249,061.4600 95.864% $238,760.28
Fixed Income FN MA AT0293 3.0000%3/1/2043 AT0293A 153,294.2000 96.548% $148,002.48
Fixed Income F N MA BC 1486 3.0000%8/1/2046 B C 1486A 219,471.7900 95.864% $210,394.44
Fixed Income FNMA MA2779 2.0000%10/1/2026 MA2779A 168,878.4000 96.816% $163,501.31
Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 130,911.1700 100.563% $131,648.20
Fixed Income GEN ERAL MTRS FI N L CO 4.000%10/06/26 GMF4026 160,000.0000 93.966% $150,345.60
Fixed Income GEORGIA PAC CORP 8.000% 1/15/24 GPC8024 140,000.0000 119.469% $167,256.60
Fixed Income HALLIBURTON CO BDS 3.800% 11/15/25 HCB3825 180,000.0000 99.144% $178,459.20
Fixed Income HEWLETT PACKARD CO NT4.375% 9/15/21 HPC4321 150,000.0000 102.852% $154,278.00
Fixed Income HSBC HLDGS 2.950% 5/25/21 HSBC21C 180,000.0000 98.648% $177,566.40
Fixed Income JPMORGAN CHASE NTS 3.200% 1/25/23 JCN3223 220,000.0000 98.566% $216,845.20
Fixed Income KEY BANK NA 2.250% 3/16/20 K B N 2220 100,000.0000 98.713% $98,p713.00
Fixed Income LOS ANGELES REV BDS 6.574% 7/01/45 LAR6545 100,000.0000 137.517% $137,517.00
Fixed Income MACY'S RETAIL HLDGS 4.375% 9/01/23 MRH4323 150,000.0000 100.067% $150,100.50
Fixed Income MIDAMERICAN ENERGY 3.750%11/15/23 ME33723 190,000.0000 100.969% $191,841.10
Fixed Income NAROT 2016-C A3 1.180% 1/15/21 N2A1121 21,370.6100 99.081% $21,174.21
Fixed Income NAROT 2017-B A3 1.750% 10/15/21 N2A0121 350,000.0000 98.541% $344,893.50
Fixed Income NORFOLK SOUTHERN COR 4.150% 2/28/48 NSC4148 100,000.0000 96.624% $96,624.00
Fixed Income ORACLE CORP NTS 2.950% 11/15/24 OCN2924 150,000.0000 96.581% $144,871.50
Fixed Income PNC FINLSVCS GROUP 3.150% 5/19/27 PFS3127 100,000.0000 94.622% $94,622.00
Fixed Income QUEST DIAGNOSTICS BD 3.500% 3/30/25 QDB3525 150,000.0000 96.423% $144,634.50
Fixed Income SHIRE ACQ INV IRELAND2.875% 9/23/23 SA12823 155,000.0000 95.234% $147,612.70
Fixed Income TA OT 2017-D A3 1.930% 1/18/22 T2A2222 150,000.0000 98.310% $147,465.00
Fixed Income TI ME WARN ER CABLE NT 7.300% 7/01/38 TWC7338 125,000.0000 114.542% $143,177.50
Fixed Income UNTD AIR 2013-1 4.300% 8/15/25 UA24325 80,248.7000 101.883% $81,759.78
Fixed Income US TREAS BDS 3.625% 8/15/43 UTB3643 615,000.0000 107.309% $659,950.35
Fixed Income US TREAS NTS 1.625% 4/30/23 UTN1623 220,000.0000 94.375% $207,625.00
HIGHMPSrslPARS: Central Contra Costa Sanitary District
10
CAPITAL MANAGEMENT
vembe -
Holdings-Reporting as of Trade Date
Account:6746055900-PARS/CCCSD 115P-OPEB
As of:30-Sep-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Fixed Income US TREAS NTS 1.750% 2/15/26 UTN1726 175,000.0000 90.746% $158,805.50
Fixed Income US TREAS NTS 2.000% 2/15/25 UTN2025 210,000.0000 94.180% $197,778.00
Fixed Income US TREAS NTS 2.375% 5/15/27 UTN2327 400,000.0000 94.941% $379,764.00
Fixed Income US TREAS NTS 2.375%12/31/20 UTN2320 830,000.0000 98.973% $821,475.90
Fixed Income US TREAS NTS 3.125% 5/15/21 UTN3221 230,000.0000 100.633% $231,455.90
Fixed Income VERIZON COMM SR NT 4.125% 3/16/27 VC44127 60,000.0000 100.456% $60,273.60
Fixed Income BOSTON PPTYS LTD PAR 2.750%10/01/26 BXP26A 180,000.0000 90.516% $162,928.80
Fixed Income ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 80,000.0000 97.136% $77,708.80
Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 120,000.0000 127.018% $152,421.60
Fixed Income EL PASO ENERGY CORP 7.800% 8/01/31 EP31 115,000.0000 124.554% $143,237.10
Fixed Income FORD MTR CO NTS 7.450% 7/16/31 F31 130,000.0000 111.074% $144,396.20
Fixed Income JOHNSON &JOHNSON 3.625% 3/03/37 130,000.0000 96.217% $125,082.10
Fixed Income VERIZON COMMUNICATIO 5.250% 3/16/37 120,000.0000 106.617% $127,940.40
SUBTOTALS
Cash&Cash Equivalents $11534,552.74
Equities $30,892,964.77
Fixed Income $281871,960.64
TOTALS $61,299,1478.15
w PARS: Central Contra Costa Sanitary District
11
CAPITAL MANAGEMENT
vembe -
Investment Summary Since Inception
CCCSD — Pension Beginning Value $3,359,081.81
Asset Allocation Contributions 11999,498.13
Withdrawals -11,902.58
Total Assets: $5,465,920 Gain (Loss) 15,980.89
Interest and Dividends 103,343.60
Period Ending: 9-30-2018 Net Accrued Income 22,772.08
3Q18 Return: 1 .78% Ending Market Value $5,488,773.93*
Inception-to-Date Return: 2.86%
Inception Date:9-1-2017
Cash
$$7.886 Equity
1.61% $1,684.285
30.81%
Fixed Income
$3,693,748
67.58°Io
* Ending Market Value differs from total market value on page 13 due to differences in reporting methodology. The above ending market value includes
accruals.
JHIGHMARrs, PARS: Central Contra Costa Sanitary District
12
CAPITAL MANAGEMENT
�Fovembe - Pa-ge 144 of 15 9
Asset Allocation - Central Contra Costa Sanitary District Pension
As of Third Quarter 2018
Current Asset Allocation Investment Vehicle
Equity 30-81% Range: 20%-40% 156845286
Large Cap Core 5.49% IVV iShares Core S&P 500 3007048
4.02% VGIAX Vanguard Growth & Income Adm 219,714
Large Cap Value 4.45% IVE iShares S&P 500 Value 2437264
Large Cap Growth 2.52% IVW iShares S&P 500 Growth 1371484
Mid Cap Core 2.78% IWR iShares Russell MidCap Index Fund 1527145
Small Cap Value 3.54% UBVFX Undiscovered Managers Behavioral Val R6 193,677
Small Cap Growth 1.83% PRJIX T. Rowe Price New Horizons Fund 1 997776
International Core 1.24% VEA Vanguard FTSE Developed Markets ETF 67,588
International Value 1.24% DODFX Dodge & Cox International Stock Fund 677715
International Growth 1.25% MGRDX MFS® International Growth Fund Class R6 68,301
Emerging Markets 1.73% HHHYX Hartford Schroders Emerging Mkts Eq Y 947476
Real Estate 0.73% VNQ Vanguard REIT ETF 40,098
Fixed Income 67.58% Range: 50%-80% 35693,748
45.94% Core Fixed Income Portfolio 275107993
Short-Term 6.53% VFSUX Vanguard Short-Term Corp Adm Fund 3571126
Intermediate-Term 7.56% PTTRX PIMCO Total Return Instl Fund 4137351
7.54% PTRQX Prudential Total Return Bond Q 4121278
Cash 1.61% Range: 0%-20% 87,886
1.61% FGZXX First American Government Oblig Z 87,886
TOTAL 100.00% $5,4655920
w PARS: Central Contra Costa Sanitary District
13
CAPITAL MANAGEMENT
vembe -P
Selected Period Performance
PARS/CCCSD 115P - PENSION
Account 6746055901
Period Ending: 9/30/2018
Year Inception
to Date to Date
3 Months (9 Months) 1 Year (13 Months)
Cash Equivalents .44 1.17 1.40 1.36
Limper Money Market Funds Index 1.11 1.33 1.29
Total Fixed Income .29 -1.22 -.82 -1.13
BBG Barclays US Aggregate Bd Index -1.60g -
Fixed Income ex Funds .35 -1.23 -.87 -1.07
Total Equities 5.27 6.65 12.50 13.64
Large Cap Funds 7.45 9.48 16.82 17.38
S&P 500 Composite Index 7.71 10.56 17.91 18.64
Mid Cap Funds 4.93 7.33 13.88 14.94
Russell Midcap Index 5.0: 13.98 15.
Small Cap Funds 4.79 12.39 18.45 21.67
Russell 2000 Index 3.58 11.51 15.24 20.54
International Equities .35 -4.29 -.23 1.32
MSCI LA�L Index 1.35 -1.43 2.74 4.88
MSCI EM Free Index -1.09 -7.68 -.81 -1.11
Real Estate - ETFs / Sctr Fds .48 .54 2.02 1.28
Wilshire REIT Index .72 2.25 3.99 3.60
Total Managed Portfolio 1.78 1.13 2.89 2.86
CCCSD Pension
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.
F PARS: Central Contra Costa Sanitary District
-..AHIGHMAR- Psl13
CAPITAL MANAGEMENT
vembe -P
Fixed Income Portfolio: Statistics
As of Third Quarter 2018
CCCSD BC Aggregate Bond
Pension Index
Weighted Average Maturity 6.90 years 8.10 years
Effective Duration 5.43 years 6.01 years
Average Coupon 3.17% 3.14%
Yield to Maturity 3.54% 3.45%
Average Quality Aa3 Aa2
JHIGHMARI�� PARS: Central Contra Costa Sanitary District
14
CAPITAL MANAGEMENT
vembe -
Fixed Income Portfolio: Sectors
As of Third Quarter 2018
50.0%
45.0%
40.0%
35.0%
30..O%r
25.0%
20.0%
15.0%
10.0%
5,0%
Cash Tri su ry Agency Corp Non-Corp VIBS CNIO ASS CMBS
w CCCSD Pension 0.0% 26.5% 0.0% 457% 0.0% 19.2% 0.0% 8.7% On 0%
w Barclays U.S.Aggregate Bond Index 0,0% 39.3% 1.5% 25.3% 4.7% 26,7% 0.0% 0.5% 2.0%
w 0 PARS: Central Contra Costa Sanitary District
15
CAPITAL MANAGEMENT
PA PO
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Fixed Income Portfolio: Effective Duration and Effective Maturity
As of Third Quarter 2018
Effective Duration Effective Maturity
30%
35%
30% 25%
25%
20%
20%
15%
15%
10%
10%
5% 50/0
0% YrsO-110+ 0%
0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. sY
. rs. O_1 Yr. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-'f0 Yrs. 10+Yrs.
■CCC SD Pension 3,55% 19.98% 28.67% 31.84% 7.12% 8.84% m CCCSD Pension 155% 16.79% 24.94% 17.23% 26.53% 10,95%
BC Aggregate Bond Index. 0.21% 23.58% 27.48% 26.52% 7.49% 14.72% BC Aggregate Bond Index {7.04°/0 21.69% 19.23°/0 21.4.8% 21.45°/v 16.11°/o
PARS: Central Contra Costa Sanitary District
HIGHMARI�� 16
CAPITAL MANAGEMENT
PA po A
N Ovembe-1-/-U, /-U18 Reywal Committee Meetiny /-%Yt=:11r1a-P&-c-ket---Pa-ge 149 of 159
Holdings-Reporting as of Trade Date
Account:6746055901-PARS/CCCSD 115P-PENSION
As of:30-Sep-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Cash&Cash Equivalents FIRST AMERN GOVT OBLIG FD CL Z#3676 FGZXX 87,886.4100 $1.0000 $87,886.41
Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 1,561.6820 $43.3600 $67,714.53
Equities HARTFORD SCHRODR MKTS EQCLY#1842 HHHYX 6,114.9310 $15.4500 $94,475.68
Equities ISHARES RUSSELL MIDCAP ETF IWR 690.0000 $220.5000 $152,145.00
Equities ISHARES S&P 500 GROWTH ETF IVW 776.0000 $177.1700 $137,483.92
Equities ISHARES S&P 500 VALUE ETF IVE 2,100.0000 $115.8400 $243,264.00
Equities ISHARES TR CORE S&P500 ETF IVV 1,025.0000 $292.7300 $300,048.25
Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 1,957.0380 $34.9000 $68,300.63
Equities T ROWE PRICE NEW HORIZONS FD#532 PRJIX 1,510.3840 $66.0600 $99,775.97
Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 2,595.8650 $74.6100 $193,677.49
Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 1,562.0000 $43.2700 $67.,587.74
Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 2,580.0190 $85.1600 $219,714.42
Equities VANGUARD REAL ESTATE ETF VNQ 497.0000 $80.6800 $40,097.96
Fixed Income PIMCO TOTAL RETURN INSTL #35 PTTRX 41,710.5120 $9.9100 $413,351.17
Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 29,532.8050 $13.9600 $412,277.96
Fixed Income VNGRD ST TERM INVMT GRADE ADM #539 VFSUX 34,174.7560 $10.4500 $357,126.20
Fixed Income CC CCIT 2014-A1 2.880% 1/23/23 CC22823A 52,000.0000 99.480% $51,729.60
Fixed Income CIT 2012-4A A 1.580% 8/16/21 C2A152113 30,000.0000 98.972% $29,691.60
Fixed Income HAROT 2017-4 A3 2.050%11/22/21 H2A2121A 20,000.0000 98.837% $19,767.40
Fixed Income TA OT 2016-D A 3 1.230% 10/15/20 T2A 1220A 20,113.0900 99.311% $19,1974.51
Fixed Income UNITED STATES TREAS 2.750% 6/30/23 UST0023B 5,000.0000 98.578% $4,928.90
Fixed Income UNITED STATES TREAS 2.875% 8/15/28 UST2828A 35,000.0000 98.461% $34,461.35
Fixed Income US TREAS NTS 1.500%11/30/19 UTN1519E 50,000.0000 98.629% $49,314.50
Fixed Income US TREAS NTS 1.875% 1/31/22 UTN0022B 55,000.0000 96.731% $53,202.05
Fixed Income US TREAS NTS 2.000% 5/31/24 UTN2024A 90,000.0000 94.926% $85,433.40
Fixed Income WELLS FARGO&CO NEW 3.000%10/23/26 WFC3026A 40,000.0000 92.795% $37,118.00
Fixed Income ABBOTT LABS SR NT 3.750%11/30/26 ALS3726 30,000.0000 99.719% $29,915.70
Fixed Income AMERICAN EXPRESS CO 3.000%10/30/24 AEC3024 30,000.0000 95.520% $28,656.00
Fixed Income AMERICAN INTL GROUP 2.300% 7/16/19 AIG2319 20,000.0000 99.552% $19,910.40
Fixed Income AMXCA 2017-3 A 1.770%11/15/22 A2A1122 25,000.0000 98.153% $24,538.25
w PARS: Central Contra Costa Sanitary District
18
CAPITAL MANAGEMENT
vembe -
Holdings-Reporting as of Trade Date
Account:6746055901-PARS/CCCSD 115P-PENSION
As of:30-Sep-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Fixed Income ANHEUSER-BUSCH INBEV 3.650% 2/01/26 A133626 25,000.0000 97.170% $24,292.50
Fixed Income AT&T INC NTS 4.125% 2/17/26 AIN 4126 25,000.0000 98.809% $24.,702.25
Fixed Income AVALONBAY CMNTYS INC 3.450% 6/01/25 AC13425 20,000.0000 97.584% $19,516.80
Fixed Income BB&T CORP SR MTN 2.850% 10/26/24 BCS2824 35,000.0000 95.689% $33,491.15
Fixed Income BECTON DICKINSON BDS 2.133% 6/06/19 BDB2119 20,000.0000 99.407% $19,881.40
Fixed Income BK OF AMERICA CORP 4.000% 4/01/24 BOA4024 35,000.0000 101.000% $35,350.00
Fixed Income BK OF MONTREAL MTN 2.350% 9/11/22 BOM2322 20,000.0000 95.909% $19,181.80
Fixed Income BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 20,000.0000 97.566% $19,513.20
Fixed Income BK OF NY MELLON MTN 2.050% 5/03/21 BON2021 20,000.0000 97.009% $19,401.80
Fixed Income CAPITAL ONE BK USA 3.375% 2/15/23 COB3323 25,000.0000 97.298% $24,324.50
Fixed Income CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 30,000.0000 96.594% $28,978.20
Fixed Income CELGENE CORP NT 3.250% 2/20/23 CC33223 25,000.0000 98.061% $24,515.25
Fixed Income CHAIT 2016-A4 A 1.490% 7/15/22 C2A1422 25,000.0000 97.288% $24,322.00
Fixed Income CITIGROUP INC 3.200%10/21/26 C133226 25,000.0000 93.341% $23,335.25
Fixed Income COMCAST CORP SR NT 3.375% 8/15/25 CCS3325 20,000.0000 96.563% $19,312.60
Fixed Income CONCHO RES INC 4.300% 8/15/28 CR14328 10,000.0000 99.595% $9,959.50
Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 20,000.0000 102.284% $20,456.80
Fixed Income DOW CHEM CO NTS 4.375%11/15/42 DCC4342 20,000.0000 94.859% $18,971.80
Fixed Income ECOLAB INC SR NT 2.375% 8/10/22 EIS2322 20,000.0000 95.864% $19,172.80
Fixed Income EN BRIDGE INC 2.900% 7/15/22 E122922 20,000.0000 96.995% $19,399.00
Fixed Income ENTERPRISE PRODS NT 3.350% 3/15/23 EPN3323 20,000.0000 98.863% $19,772.60
Fixed Income ERP OVER LTD PRTN NT4.625%12/15/21 EOL4621 25,000.0000 103.097% $25,774.25
Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 34,708.9000 97.151% $33,720.04
Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 38,403.1600 96.067% $36,892.76
Fixed Income FGLMC#J 30401 3.000% 1/01/30 J30401F 31,485.5900 99.032% $31,180.81
Fixed Income FGLMC G08701 3.000% 4/01/46 G08701F 31,192.0100 95.850% $29,897.54
Fixed Income FHLMC G08823 3.5000%7/1/2048 G08823F 62,184.1600 98.488% $61,243.94
Fixed Income FHLMC G15252 3.0000%12/1/2029 G15252F 37,070.5900 99.032% $36,711.75
Fixed Income FIFTH THIRD BANCORP 2.600% 6/15/22 FTB2622 25,000.0000 96.297% $24,074.25
Fixed Income F N MA#A B3678 3.500%10/01/41 A B 3678A 44,434.7300 99.192% $44,1075.70
w PARS: Central Contra Costa Sanitary District
19
CAPITAL MANAGEMENT
vembe -
Holdings-Reporting as of Trade Date
Account:6746055901-PARS/CCCSD 115P-PENSION
As of:30-Sep-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Fixed Income F N MA A L9376 3.0000%8/1/2031 A L9376A 361f 750.8400 98.869% $36,335.19
Fixed Income FNMA AS7729 3.0000%8/1/2046 AS7729A 421P941.6400 95.864% $41,165.57
Fixed Income F N MA BC 1486 3.0000%8/1/2046 B C 1486A 421f 206.1000 95.864% $40,P460.46
Fixed Income F N MA MA2779 2.0000%10/1/2026 MA 2779A 35,931.5800 96.816% $34,p787.52
Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 56,104.7900 100.563% $56,420.66
Fixed Income GEN ERAL MTRS FI N L CO 4.000%10/06/26 GMF4026 25,000.0000 93.966% $23,491.50
Fixed Income GEORGIA PAC CORP 8.000% 1/15/24 GPC8024 25,000.0000 119.469% $29,867.25
Fixed Income HALLIBURTON CO BDS 3.800% 11/15/25 HCB3825 20,000.0000 99.144% $19,828.80
Fixed Income HAR 2017-4A-4 2.210% 3/21/24 H222224 25,000.0000 97.904% $24,476.00
Fixed Income HEWLETT PACKARD CO NT4.375% 9/15/21 HPC4321 20,000.0000 102.852% $20,570.40
Fixed Income HSBC HLDGS 2.950% 5/25/21 HSBC21C 20,000.0000 98.648% $19,729.60
Fixed Income JPMORGAN CHASE NTS 3.200% 1/25/23 JCN3223 30,000.0000 98.566% $29,569.80
Fixed Income KEY BANK NA 2.250% 3/16/20 KBN2220 10,000.0000 98.713% $9,871.30
Fixed Income MACY'S RETAIL HLDGS 4.375% 9/01/23 MRH4323 20,000.0000 100.067% $20,013.40
Fixed Income MAGELLAN MIDSTREAM 5.000% 3/01/26 MM55026 25,000.0000 106.308% $26,577.00
Fixed Income MIDAMERICAN ENERGY 3.750%11/15/23 ME33723 30,000.0000 100.969% $30,290.70
Fixed Income NORFOLK SOUTHERN COR 4.150% 2/28/48 NSC4148 10,000.0000 96.624% $9,662.40
Fixed Income ORACLE CORP NTS 2.950% 11/15/24 OCN2924 25,000.0000 96.581% $24,145.25
Fixed Income QUEST DIAGNOSTICS BD 3.500% 3/30/25 QDB3525 25,000.0000 96.423% $24,105.75
Fixed Income SHIRE ACQ INV IRELAND2.875% 9/23/23 SA12823 20,000.0000 95.234% $19,046.80
Fixed Income TA OT 2017-D A3 1.930% 1/18/22 T2A2222 25,000.0000 98.310% $24,577.50
Fixed Income TI ME WARN ER CABLE NT 7.300% 7/01/38 TWC7338 15,000.0000 114.542% $17,181.30
Fixed Income TRANSCONTINENTAL GAS 7.850% 2/01/26 TG77826 25,000.0000 121.809% $30,452.25
Fixed Income UNTD AIR 2013-1 4.300% 8/15/25 UA24325 32,099.4800 101.883% $32,703.91
Fixed Income US TREAS BDS 3.625% 8/15/43 UTB3643 100,000.0000 107.309% $107,309.00
Fixed Income US TREAS NTS 1.625% 4/30/23 UTN1623 55,000.0000 94.375% $51,906.25
Fixed Income US TREAS NTS 2.000% 2/15/25 UTN2025 25,000.0000 94.180% $23,545.00
Fixed Income US TREAS NTS 2.250%11/15/25 UTN2225 30,000.0000 95.051% $28,515.30
Fixed Income US TREAS NTS 2.375% 5/15/27 UTN2327 75,000.0000 94.941% $71,205.75
Fixed Income US TREAS NTS 2.375%12/31/20 UTN2320 95,000.0000 98.973% $94,024.35
w0 PARS: Central Contra Costa Sanitary District
20
CAPITAL MANAGEMENT
vembe -
Holdings-Reporting as of Trade Date
Account:6746055901-PARS/CCCSD 115P-PENSION
As of:30-Sep-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Fixed Income US TREAS NTS 3.125% 5/15/21 UTN3221 60,000.0000 100.633% $60,379.80
Fixed Income VERIZON COMM SR NT 4.125% 3/16/27 VC44127 10,000.0000 100.456% $10,045.60
Fixed Income BOSTON PPTYS LTD PAR 2.750%10/01/26 BXP26A 20,000.0000 90.516% $18,103.20
Fixed Income ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 20,000.0000 97.136% $19,427.20
Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 10,000.0000 127.018% $12,701.80
Fixed Income EL PASO ENERGY CORP 7.800% 8/01/31 EP31 20,000.0000 124.554% $24,910.80
Fixed Income FORD MTR CO NTS 7.450% 7/16/31 F31 25,000.0000 111.074% $27,768.50
Fixed Income JOHNSON &JOHNSON 3.625% 3/03/37 15,000.0000 96.217% $14,432.55
Fixed Income VERIZON COMMUNICATIO 5.250% 3/16/37 20,000.0000 106.617% $21,323.40
SUBTOTALS
Cash&Cash Equivalents $87,886.41
Equities $1,684,285.59
Fixed Income $3,693,748.04
TOTALS $5,465,920.04
w PARS: Central Contra Costa Sanitary District
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CAPITAL MANAGEMENT
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CENTRAL CONTRA COSTA SANITARY DISTRICT
For Period EndingSeptember 30 2018
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 ETF (4/17) 7.70 25 10.53 20 17.87 20 17.26 11 13.89 9
iShares S&P 500 Value ETF (4/17) 5.82 42 3.40 68 9.89 59 13.95 45 10.70 40
Vanguard Growth & Income Adm (12/16) 8.08 15 11.20 11 18.65 13 17.11 16 14.20 6
iShares S&P 500 Growth ETF (4/17) 9.22 14 17.05 38 24.95 39 19.66 28 16.35 18
S&P 500 TR USD 7.71 -- 10.56 -- 17.91 -- 17.31 -- 13.95 --
iShares Russell Mid-Cap ETF (3/16) 4.95 30 7.33 34 13.79 37 14.32 42 11.46 26
Russe I I Mid Cap TR USD 5.00 -- 7.46 -- 13.98 -- 14.52 -- 11.65 --
Undiscovered Managers Behavioral Val R6 (9/16) 2.80 11 6.56 27 12.48 12 15.54 24 12.13 3
Russell 2000 Value TR USD 1.60 -- 7.14 -- 9.33 -- 16.12 -- 9.91
T. Rowe Price New Horizons 1 9.08 21 25.52 17 31.36 19 23.34 12 16.55 4
Russe I 12000 Growth TR USD 5.52 -- 15.76 -- 21.06 -- 17.98 -- 12.14 --
Dodge& Cox International Stock 0.81 54 -6.39 95 -5.26 99 8.20 69 3.74 64
Vanguard FTSE Developed Markets ETF (9/18) 1.11 43 -1.63 39 2.74 29 9.83 26 4.85 25
M FSO International Growth R6 2.17 12 3.35 12 9.44 8 13.49 13 6.76 19
MSCI EAF E NR USD 1.35 -- -1.43 -- 2.74 -- 9.23 -- 4.42 --
Hartford Schroders Emerging Mkts Eq Y -1.21 34 -7.21 24 -0.74 21 13.33 13 4.21 17
IMSCI EM Free Index -1.09 -- -7.68 -- -0.81 -- 12.36 -- 3.61
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.
Wo HIGHMPSrsl PARS: Central Contra Costa Sanitary District
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CAPITAL MANAGEMENT
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CENTRAL CONTRA COSTA SANITARY DISTRICT
For Period Ending September 30, 2018
3-Month YTD 7-Year 3-Year 5-Year
Fund Name Inception Return Rank Return Rank Return Rank Return Rank Return Rank
Vanguard Real Estate ETF (4/17) 0.55 56 0.55 71 1.94 82 7.02 44 8.68 51
Wilshire REIT Index 0.72 -- 2.25 — 3.99 -- 7.08 — 9.25 --
PIMCO Total Return Instl 0.08 58 -1.62 57 -1.52 72 2.16 25 2.27 41
PGIM Total Return Bond R6 (5/16) -0.09 83 -1.97 82 -0.88 34 2.86 10 3.46 4
Vanguard Short-Term Investment-Grade Adm 0.61 34 0.30 61 0.25 60 1.65 28 1.77 18
BBgBarc US Agg Bond TR USD 0.02 -- -1.60 — -7.22 -- 1.37 — 2.16 --
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.
JHIGHMARrs,� PARS: Central Contra Costa Sanitary District
22
CAPITAL MANAGEMENT
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