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 (Fourth Quarter Calendar Year 2018) Page 1 of 30
Item 5.a.
Av CENTRAL SAN
February 25, 2019
TO: FINANCE COMMITTEE
FROM: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION
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-TRUSTAND PENSION SUB-
TRUST QUARTERLY REPORTS (FOURTH QUARTER CALENDAR YEAR
2018)
Attached for review are the most recent Highmark overview and GASB 45 OPEB Sub-Trust and Pension
Sub-Trust Reports. Given the market downturn in December 2018, and the subsequent recovery in
January, Highmark capital also provided a supplemental report through January 2019 as Attachment 3.
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 4th Quarter 2018 GASB 45 OPEB Sub-Trust Report
2. PARS Investment Report 4th Quarter
3. January 2019 Update
February 25, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 148 of 182
Page 2 of 30
Attachment 1
JHIGHMARK@
CAPITAL MANAGEMENT
January 31, 2019
Phil Leiber
Director of Finance and Administration
Central Contra Costa Sanitary District
5019 Imhoff Place
Martinez, CA 94553-4392
RE: 4Q Quarter 2018 OPEB/Pension Report
Dear Mr. Leiber,
The fourth quarter witnessed a strong sell-off within all equity markets, as heightened levels of
volatility returned. Issues that weighed on markets included global trade tensions, central bank
monetary tightening, and a debate on future economic growth rates. While concerns on trade
relations with China drew most investor's attention, it was the Federal Reserve which was likely
the primary catalyst for the market sell-off. Early in the fourth quarter, investor confidence was
shaken by recently appointed Federal Reserve ("Fed") Chairman Jay Powell when he declared
during an interview that interest rates were "a long way from neutral." The hawkish tone did not sit
well with investors and the equity market slide began. Fearing the world's largest central bank no
longer had the stock market's back, the S&P 500 Index would mark an all-time high close of 2930
on September 201h and, over the course of the quarter, fall to within a hair of an official bear
market (a decline of 20% from a peak) before rallying after Christmas. The ups and downs
throughout the year netted a -4.4% annual return for the index including dividends—the
benchmark's first calendar year loss since 2008. In a traditional flight to safety trade, Treasury
bonds rallied and credit spreads widened.
Chairman Powell, perhaps recognizing the gravity of his comments and the potential for financial
market volatility to spill over into the real economy, attempted to backtrack in a speech to the
Economic Club of New York later in the quarter, he noted that"[interest rates] remain just below
the broad range of estimates of the level that would be neutral for the economy."
Increasing monetary policy uncertainty was only one punch in the combination that investors
endured in the final quarter of the year. The cloud of a trade war also weighed heavily on
sentiment with daily headlines creating large market swings in both directions. Of course, one of
the very last statements market participants wanted to see following what appeared to be a
productive G20 summit in early December was a provocative President Trump tweet"...I am a
Tariff Man."Yet that is exactly what occurred, keeping the equity market on its heels leading up to
the Federal Open Market Committee's (FOMC)final meeting of the year.
Confronted with an equity market approaching bear market territory, the Fed pressed on with its
fourth Fed Funds rate increase of the year and its ninth since moving off the zero bound in
December 2015. Further compounding investor concerns, the Fed continued to forecast the need
for future hikes—a policy path the market clearly felt was missing signs that the global economy
was softening. Despite Chairman Powell's attempts to qualify that these projections were subject
to"data dependence" and "highly uncertain," it did not stop market anxiety from deepening. In an
unusual move, the President broke with protocol and openly criticized the Fed Chairman by
declaring that monetary policy was the "only problem"with the economy.
Amid swirling policy uncertainty, global financial markets entered 2019 with a growing wall of
worry that has the potential to keep volatility elevated for the foreseeable future. The good news
February 25, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 149 of 182
Page 3 of 30
is that policy is controllable and correctable. The big question for the New Year is how quickly a
course correction can be taken before more long-term damage is done.
The yield curve ended in 2018 with a unique shape; inverted between the one-year and the seven
year points on the yield curve. Between the 2s and 10 year points, there was only 19 basis points
of upward sloping difference. Some fear that the yield curve is trying to communicate that the
economy is slowing down, and that a recession is on the horizon. Other investors point to the
influence that central bank's quantitative easing/tightening measures have had on the yield curve
and feel perhaps that the shape of the yield curve is less of a recession indicator than it has been
over the last fifty years.
As for Highmark's outlook for 2019, we do not see a recession looming. Our forecast for GDP,
calls for a range of between 2.1- 2.6% growth. We see unemployment remaining at historically
low levels, ending the year at a 3.9% rate. Our view is that inflation will remain under wraps,
targeting a 2.2% rate, as measured by the PCE. With 2019 offering up a reasonably attractive
economic profile, we see the Federal Reserve inclined to raise rates between 1 —2 times over the
course of the year.
A word on your investment objective
When markets decline like they have over the last three-months, it can be painful. Market
declines like the ones we have seen in the fourth quarter can lead investors to alter their portfolio
risk profiles and trade assets in ways that conflict with stated long-term allocation policies. While
the natural tendency to"make the pain stop" can be overwhelming, it is times of heightened
volatility, when adhering to a prevailing investment discipline can be reinforcing to long-term
goals. When thinking about the portfolio's long term goals, it is important to keep in mind the
following concepts:
1. The current asset allocation holds a significant allocation to stocks, due to their attractive
long-term growth potential.
2. In the short-term, the direction and path of equity returns is unpredictable.
3. We can only benefit from the returns expected from stocks, by accepting the
unpredictable and sometimes uncomfortable return pattern offered by the equity markets.
4. The District is not planning on using these assets in the near-term, and the underlying
liabilities are long-term in nature, and as such can allow the District to maintain the asset
allocation policy established within the Moderate Objective for OPEB and Moderately
Conservative Objective for Pension.
Plan Performance
The Central Contra Costa Sanitary District OPEB Plan returned -6.43% gross of investment fees
for the fourth quarter. The return was slightly ahead of the District's OPEB Plan Benchmark
target of-6.49%. The slight outperformance was attributed to all equity categories outperforming
their benchmark targets, however for the fourth quarter, this merely translated into losing less
than the benchmark. There is little solace or exuberance when the Plan's small cap stocks
decline -19.31% compared to the Russell 2000 Index return of-20.2%. As for investment
returns, the fourth quarter was the worst quarter for U.S. equities since 2011, and the first
negative return on a calendar year basis since 2008. The S&P500 Index declined -13.5%, small
caps as measured by the Russell 2000 Index were off-20.2%. International developed markets
fared similarly with the MSCI-EAFE Index down -12.5%, and emerging markets down -7.5%.
February 25, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 150 of 182
Page 4 of 30
The overall equity component for the Plan was down -13.99%. There was no safe haven within
the equity market, unless one finds the decline in REITs (-6.16%) comforting.
Fixed income returns were positive in the quarter, as investors flocked to the safety of the fixed
income market. The Bloomberg Barclays Aggregate Bond Index returned a positive +1.64%.
The U.S. Treasury yield curve fell across most maturities during the quarter with the biggest
decreases occurring in the intermediate to longer segment of the curve. The 10-year Treasury
yield ended the quarter at a 2.69% yield, down 37 basis points from September. Corporate
bonds lagged relative to treasuries in the quarter. Investors have become concerned with
increased levels of corporate debt, which has climbed to roughly 46% of gross domestic product,
the highest on record according to data from the Federal Reserve and Commerce Department.
In that most of our fixed income managers maintain an overweight to corporate bonds, the Plan's
fixed income segment lagged benchmark targets due to an overweight in corporate bonds, and a
shorter-than benchmark duration positioning. Fixed income returns for the Plan posted a gain of
+1.27%.
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 -3.37% for the quarter, gross of
investment fees, which in line with the District's Plan benchmark target of-3.38%. Performance
contributions from the various asset class segments were similar to the OPEB Plan with all equity
categories offering modest relative outperformance, and the fixed income segment lagging the
benchmark.
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
February 25, 2019 Special FINANCE Committee Meeting Agenda Packet- Page 151 of 182
Attachment 2
PARS: Central Contra Costa Sanitary District
OPEB and Pension Plan
Fourth Quarter 2018
Presented by
Andrew Brown, CFA
JHIGHMARKO
CAPITAL MANAGEMENT
Investment Summary Since Inception
CCCSD — OPEB Beginning Value 566,683.26
Asset Allocation Contributions 104,163,780.32
Withdrawals -63,740,383.30
Total Assets: $57,867,943 Gain (Loss) 4,754,202.10
Interest and Dividends 12,123,660.78
Period Ending: 12-31-2018 Net Accrued Income 161,568.77
4Q18 Return: -6.43% Ending Market Value $58,029,534.35-
1 Year Return: -3.74%
Inception-to-Date Return: 8.51%
Cash
Inception Date:4-1-2009 $1,282,517
Plan target rate of return: 6.25% 2.22%
Equity
$29,539,707
51.05%
Fixed Income
$27,045,719
46.74%
* 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 0 PARS: Central Contra Costa Sanitary District
2
CAPITAL MANAGEMENT
Asset Allocation - Central Contra Costa Sanitary District OPEB
As of Fourth Quarter 2018
Current Asset Allocation Investment Vehicle
Equity 51.05% Range:40%-60% 29,539,707
Large Cap Core 11.25% IVV iShares S&P 500 Index Fund 6,507,389
6.50% VGIAX Vanguard Growth & Income Adm 3,761,048
Large Cap Value 6.13% IVE iShares S&P 500 Value Fund 3,545,665
Large Cap Growth 4.61% IVW iShares S&P 500 Growth Fund 2,670,324
Mid Cap Core 4.59% IWR iShares Russell MidCap Index Fund 2,656,332
Small Cap Value 4.97% UBVFX Undiscovered Managers Behavioral Val R6 2,876,547
Small Cap Growth 3.01% PRJIX T. Rowe Price New Horizons Fund 1 1,743,922
International Core 2.02% VEA Vanguard FTSE Developed Markets ETF 1,169,986
International Value 1.49% DODFX Dodge & Cox International Stock Fund 863,468
International Growth 1.49% MGRDX MFSO International Growth Fund Class R6 864,278
Emerging Markets 3.21% HHHYX Hartford Schroders Emerging Mkts Eq Y 1,857,423
Real Estate 1.77% VNQ Vanguard REIT ETF 1,023,324
Fixed Income 46.74% Range:40%-60% 27,045,719
26.82% Core Fixed Income Portfolio 15,521,147
Short-Term 5.95% VFSUX Vanguard Short-Term Corp Adm Fund 3,442,828
Intermediate-Term 7.00% PTTRX PIMCO Total Return Instl Fund 4,050,580
6.97% PTRQX Prudential Total Return Bond Q 4,031,164
Cash 2.22% Range: 0%-20% 1,282,517
2.22% FGZXX First American Government Oblig Z 1,282,517
TOTAL 100.00% $57,867,943
JHIGHMARK PARS: Central Contra Costa Sanitary District
3
CAPITAL MANAGEMENT
Selected Period Performance
CCCSD - OPEB
Period Ending: 12/31/2018
Year Inception
to Date to Date
3 Months (1 Year) 3 Years 5 Years (117 Months)
Cash Equi\ralents .53 1.70 .91 .55 .35
Lipper Money Market Funds Index 1.62 .81 .48 .26
Fixed Income ex Funds 1.27 -.07
Total Fixed Income 1.28 -.04 2.43 2.30 4.20
BBG Barclays US Aggregate Bd Index 1.64 .01 2.06 2.52 3.56
Total Equities -13.99 -7.96 7.33 5.38 12.79
Large Cap Funds -13.29 -4.97 8.35 7.47 13.79
S&P 500 Composite Index -13.52 -4.38 9.26 8.49 14.84
Mid Cap Funds -15.20 -9.23 6.70 4.40
Russell Midcap Index -15.37 -9.06 7.04 6.26 15.52
Small Cap Funds -19.31 -8.61 8.33 6.25 16.32
Russell 2000 Index -20.20 -11.01 7.36 4.41 14.18
International Equities -11.03 -15.03 4.43 .91 7.85
MSCI EAFE Index -12.54 -13.79 2.87 .53 8.14
MSCI EM Free Index -7.46 -14.57 9.25 1.65 8.13
Real Estate- ETFs / Sctr Fds -6.16 -5.80
Wilshire REIT Index -6.93 -4.84 2.06 7.87 17.41
Total Managed Portfolio -6.43 -3.74 4.94 3.95 8.51
CCCSD OPEB -6.49 -3.37 5.04 4.36
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.
JH IGHMARK® PARS: Central Contra Costa Sanitary District
4
CAPITAL MANAGEMENT
Fixed Income Portfolio: Statistics
As of Fourth Quarter 2018
CCCSD BC Aggregate Bond
OPEB Index
Weighted Average Maturity 6.79 years 8.01 years
Effective Duration 5.29 years 5.93 years
Average Coupon 3.12% 3.19%
Yield to Maturity 3.42% 3.27%
Average Quality Aa3 Aa2
JHIGHMARK PARS: Central Contra Costa Sanitary District
5
CAPITAL MANAGEMENT
Fixed Income Portfolio: Sectors
As of Fourth Quarter 2018
45.0
40.0"�
35.0
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
Cash Treasury Agency Corp Non-Corp MBS CMO ABS CMBS
■CCCSD OPBB 0.0% 25.8% 0.0% 44.4% 0.9°/0 19.6% 0.0% 9.3% 0.0%
■Barclays U.S.Aggregate Bond Index 0.0% 40.0% 1.4% 24.8% 4.6°/6 26.7% 0.0% 0.5% 2.1%
JHIGHMARK PARS: Central Contra Costa Sanitary District
6
CAPITAL MANAGEMENT
Fixed Income Portfolio: Effective Duration and Effective Maturity
As of Fourth Quarter 2018
Effective Duration Effective Maturity
25% -
35%
30%
20% -
25%
0%25%
15%
20%
15%
10%
10%
5%
5% —
0%
0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 10+ 0%
Yrs. Yrs. 0-1 Yr. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs, 7-10 Yrs. 10+Yrs.
■CCCSD OPER 2.06% 24.37% 24.98% 30.98% 7.86% 9.75% ■CCCS❑OPEB 2.06% 20.94% 23.51% 17.26% 24.70% 11.53%
BC Aggregate Bond Index 0.22% 24.25% 32.14% 21.41% 7.23% 14.75% BC Aggregate Bond Index 0.09% 21.90% 19.68% 22.05% 20.31% 15.97%
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
7
CAPITAL MANAGEMENT
Holdings- Reporting as of Trade Date
Account:6746055900-PARS/CCCSD 115P-OPEB
As of:31-Dec-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Cash&Cash Equivalents CASH (35,877.3900) $1.0000 ($35,877.39)
Cash&Cash Equivalents FIRSTAMERN GOVT OBLIG FD CLZ#3676 FGZXX 1,318,394.7500 $1.0000 $1,318,394.75
Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 23,393.8720 $36.9100 $863,467.82
Equities HARTFORD SCHRODR MKTS EQCIL Y#1842 HHHYX 133,723.7880 $13.8900 $1,857,423.42
Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 29,208.4420 $29.5900 $864,277.80
Equities T ROWE PRICE NEW HORIZONS FD#532 PRJIX 36,135.9770 $48.2600 $1,743,922.25
Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 53,737.1010 $53.5300 $2,876,547.02
Equities VANGUARD GRO&INCADMIRAIL SHRS#593 VGIAX 55,155.4190 $68.1900 $3,761,048.02
Equities ISHARES RUSSELL MIDCAP ETF IWR 57,150.0000 $46.4800 $2,656,332.00
Equities ISHARES S&P 500 GROWTH ETF IVW 17,723.0000 $150.6700 $2,670,324.41
Equities ISHARES S&P 500 VALUE ETF IVE 35,057.0000 $101.1400 $3,545,664.98
Equities ISHARES TR CORE S&P500 ETF IVV 25,863.0000 $251.6100 $6,507,389.43
Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 31,536.0000 $37.1000 $1,169,985.60
Equities VANGUARD REAL ESTATE ETF VNQ 13,723.0000 $74.5700 $1,023,324.11
Fixed Income PIMCO TOTAL RETURN INSTIL #35 PTTRX 407,913.4050 $9.9300 $4,050,580.11
Fixed Income PRUDENTIAL TOTAL RTRN BD CLQ PTRQX 289,387.2160 $13.9300 $4,031,163.92
Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 329,772.7690 $10.4400 $3,442,827.71
Fixed Income EL PASO ENERGY CORP 7.800% 8/01/31 EP31 115,000.0000 119.803% $137,773.45
Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 120,000.0000 116.333% $139,599.60
Fixed Income CC CCIT 2014-A1 2.880% 1/23/23 CC22823A 275,000.0000 99.946% $274,851.50
Fixed Income HAROT2017-3 A3 1.790% 9/20/21 H2A1721B 150,000.0000 98.775% $148,162.50
Fixed Income HAROT2017-4 A3 2.050%11/22/21 H2A2121A 150,000.0000 99.010% $148,515.00
Fixed Income TAOT 2016-D A3 1.230%10/15/20 T2A1220A 74,955.5100 99.308% $74,436.82
Fixed Income UNITED STATES TREAS 2.875% 8/15/28 UST2828A 195,000.0000 101.547% $198,016.65
Fixed Income US TREAS NTS 1.875% 1/31/22 UTN0022B 175,000.0000 98.219% $171,883.25
Fixed Income US TREAS NTS 2.000% 5/31/24 UTN2024A 905,000.0000 97.297% $880,537.85
Fixed Income WELLS FARGO&CO NEW 3.000%10/23/26 WFC3026A 220,000.0000 92.572% $203,658.40
Fixed Income ABBOTT LABS SR NT 3.750%11/30/26 ALS3726 102,000.0000 98.760% $100,735.20
Fixed Income AMERICAN EXPRESS CO 3.000% 10/30/24 AEC3024 185,000.0000 95.694% $177,033.90
Fixed Income AMERICAN INTL GROUP 2.300% 7/16/19 AIG2319 150,000.0000 99.588% $149,382.00
Fixed Income AMXCA 2017-3 A 1.770%11/15/22 A2A1122 200,000.0000 98.569% $197,138.00
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
9
CAPITAL MANAGEMENT
Holdings- Reporting as of Trade Date
Account:6746055900-PARS/CCCSD 115P-OPEB
As of:31-Dec-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Fixed Income AMXCA2017-6A 2.040% 5/15/23 A2A2023 100,000.0000 98.458% $98,458.00
Fixed Income AT&T INC NTS 4.125% 2/17/26 AIN4126 220,000.0000 97.720% $214,984.00
Fixed Income AVALONBAYCMNTYS INC3.450% 6/01/25 ACI3425 155,000.0000 98.346% $152,436.30
Fixed Income BB&T CORP SR MTN 2.850%10/26/24 BCS2824 210,000.0000 96.077% $201,761.70
Fixed Income BECTON DICKINSON BIDS 2.133% 6/06/19 BDB2119 80,000.0000 99.418% $79,534.40
Fixed Income BK OF AMERICA CORP 4.000% 4/01/24 BOA4024 220,000.0000 100.554% $221,218.80
Fixed Income BK OF MONTREAL MTN 2.350% 9/11/22 BOM2322 205,000.0000 96.600% $198,030.00
Fixed Income BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 170,000.0000 97.818% $166,290.60
Fixed Income BK OF NY MELLON MTN 2.050% 5/03/21 BON2021 180,000.0000 97.603% $175,685.40
Fixed Income CAPITAL ONE BK USA 3.375% 2/15/23 COB3323 220,000.0000 96.557% $212,425.40
Fixed Income CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 170,000.0000 97.375% $165,537.50
Fixed Income CITIGROUP INC 3.200%10/21/26 C133226 220,000.0000 92.319% $203,101.80
Fixed Income COMCAST CORP NEW SR 4.150%10/15/28 CCN4128 175,000.0000 101.543% $177,700.25
Fixed Income CONCHO RES INC 4.300% 8/15/28 CRI4328 80,000.0000 97.820% $78,256.00
Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 155,000.0000 97.261% $150,754.55
Fixed Income DOWDUPONT INC 5.319%11/15/38 D155338 160,000.0000 102.968% $164,748.80
Fixed Income ECOLAB INC SR NT 2.375% 8/10/22 EIS2322 80,000.0000 96.476% $77,180.80
Fixed Income ENBRIDGE INC 2.900% 7/15/22 E122922 150,000.0000 96.776% $145,164.00
Fixed Income ENTERPRISE PRODS NT 3.350% 3/15/23 EPN3323 175,000.0000 98.634% $172,609.50
Fixed Income ERP OVER LTD PRTN NT 4.625% 12/15/21 EOL4621 170,000.0000 103.462% $175,885.40
Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 197,597.8300 98.889% $195,402.52
Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 219,427.4200 97.827% $214,659.26
Fixed Income FGLMC#J30401 3.000% 1/01/30 J30401F 186,785.7900 100.117% $187,004.33
Fixed Income FGLMC#Q13204 3.000%11/01/42 Q13204F 146,838.7000 98.221% $144,226.44
Fixed Income FHLMC G08823 3.5000%7/1/2048 G08823F 158,727.0100 99.976% $158,688.92
Fixed Income FHLMC G14702 2.5000%3/1/2023 G14702F 158,015.0200 100.084% $158,147.75
Fixed Income FHLMC G15252 3.0000%12/1/2029 G15252F 155,674.2400 100.118% $155,857.94
Fixed Income FHLMC V60586 3.0000%8/1/2029 V60586F 191,797.2500 100.117% $192,021.65
Fixed Income FIFTH THIRD BANCORP 2.600% 6/15/22 FTB2622 100,000.0000 97.275% $97,275.00
Fixed Income FNMAAL81743.5000%2/1/2046 AL8174A 333,148.7800 100.332% $334,254.83
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
CAPITAL MANAGEMENT
Holdings- Reporting as of Trade Date
Account:6746055900-PARS/CCCSD 115P-OPEB
As of:31-Dec-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Fixed Income F N MA A L8924 3.0000% 12/1/2030 A L8924A 279,380.6500 100.067% $279,567.84
Fixed Income FNMA AL9376 3.0000%8/1/2031 AL9376A 153,987.9400 99.913% $153,853.97
Fixed Income FNMA AS7729 3.0000%8/1/2046 AS7729A 243,681.0300 97.652% $237,959.40
Fixed Income FNMA AT0293 3.0000%3/1/2043 AT0293A 151,470.1800 98.304% $148,901.25
Fixed Income F N MA BC 1486 3.0000%8/1/2046 BC1486A 212,633.4500 97.652% $207,640.82
Fixed Income FNMA MA2779 2.0000%10/1/2026 MA2779A 160,517.6300 99.074% $159,031.24
Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 126,549.2000 101.222% $128,095.63
Fixed Income GENERAL MTRS FINL CO 4.000%10/06/26 GMF4026 160,000.0000 89.782% $143,651.20
Fixed Income GEORGIA PAC CORP 8.000% 1/15/24 GPC8024 140,000.0000 120.060% $168,084.00
Fixed Income HALLIBURTON CO BIDS 3.800% 11/15/25 HCB3825 180,000.0000 96.899% $174,418.20
Fixed Income HEWLETT PACKARD CO NT4.375% 9/15/21 HPC4321 150,000.0000 102.005% $153,007.50
Fixed Income HSBC HLDGS 2.950% 5/25/21 HSBC21C 180,000.0000 98.711% $177,679.80
Fixed Income JPMORGAN CHASE NTS 3.200% 1/25/23 JCN3223 220,000.0000 98.543% $216,794.60
Fixed Income KEY BANK NA 2.250% 3/16/20 KBN2220 100,000.0000 98.938% $98,938.00
Fixed Income LOS ANGELES REV BDS 6.574% 7/01/45 LAR6545 100,000.0000 138.663% $138,663.00
Fixed Income MACY'S RETAIL HLDGS 4.375% 9/01/23 MRH4323 150,000.0000 98.675% $148,012.50
Fixed Income MIDAMERICAN ENERGY 3.750%11/15/23 ME33723 190,000.0000 101.420% $192,698.00
Fixed Income NAROT 2016-C A3 1.180% 1/15/21 N2A1121 16,803.9400 99.062% $16,646.32
Fixed Income NAROT 2017-B A3 1.750%10/15/21 N2A0121 350,000.0000 98.838% $345,933.00
Fixed Income NORFOLK SOUTHERN COR 4.150% 2/28/48 NSC4148 100,000.0000 93.308% $93,308.00
Fixed Income PNC FINL SVCS GROUP 3.150% 5/19/27 PFS3127 100,000.0000 95.425% $95,425.00
Fixed Income QUEST DIAGNOSTICS BD 3.500% 3/30/25 QDB3525 150,000.0000 97.516% $146,274.00
Fixed Income SHIREACQINV IRELAND2.875% 9/23/23 SA12823 155,000.0000 94.532% $146,524.60
Fixed Income TACT 2017-D A3 1.930% 1/18/22 T2A2222 150,000.0000 98.607% $147,910.50
Fixed Income TIME WARNER CABLE NT 7.300% 7/01/38 TWC7338 125,000.0000 108.406% $135,507.50
Fixed Income UNTDAIR2013-1 4.300% 8/15/25 UA24325 80,248.7000 102.099% $81,933.12
Fixed Income US TREAS BIDS 3.625% 8/15/43 UTB3643 500,000.0000 110.691% $553,455.00
Fixed Income US TREAS NTS 1.625% 4/30/23 UTN1623 145,000.0000 96.426% $139,817.70
Fixed Income US TREAS NTS 1.750% 2/15/26 UTN1726 385,000.0000 93.609% $360,394.65
Fixed Income US TREAS NTS 2.000% 2/15/25 UTN2025 360,000.0000 96.731% $348,231.60
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
10
CAPITAL MANAGEMENT
Holdings-Reporting as of Trade Date
Account:6746055900- PARS/CCCSD 115P-OPEB
As of:31-Dec-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Fixed Income US TREAS NTS 2.375% 5/15/27 UTN2327 400,000.0000 97.906% $391,624.00
Fixed Income US TREAS NTS 2.375% 12/31/20 UTN2320 730,000.0000 99.777% $728,372.10
Fixed Income US TREAS NTS 3.125% 5/15/21 UTN3221 230,000.0000 101.484% $233,413.20
Fixed Income VERIZON COMM SR NT 4.125% 3/16/27 VC44127 60,000.0000 100.077% $60,046.20
Fixed Income BOSTON PPTYS LTD PAR 2.750%10/01/26 BXP26A 180,000.0000 90.322% $162,579.60
Fixed Income ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 80,000.0000 95.869% $76,695.20
Fixed Income FORD MTR CO NTS 7.450% 7/16/31 F31 130,000.0000 103.102% $134,032.60
Fixed Income VERIZON COMMUNICATIO5.250% 3/16/37 120,000.0000 104.167% $125,000.40
SUBTOTALS
Cash&Cash Equivalents $1,282,517.36
Equities $29,539,706.86
Fixed Income $27,045,718.94
TOTALS $57,867,943.16
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
11
CAPITAL MANAGEMENT
Investment Summary Since Inception
CCCSD — Pension Beginning Value $3,359,081.81
Asset Allocation Contributions 2,356,011.14
Withdrawals -15,158.45
Total Assets: $5,640,461 Gain (Loss) -249,551.95
Interest and Dividends 190,078.93
Period Ending: 12-31-2018 Net Accrued Income 21,994.29
4Q18 Return: -3.37% Ending Market Value $5,662,455.77*
1 Year Return: -2.28%
Inception-to-Date Return: -.27%
Inception Date:9-1-2017 Gash Equity
$291,024 $1,729,875
5.16%
30.67°/°
Fixed Income
$3,619,562
64.17%
* Ending Market Value differs from total market value on page 13 due to differences in reporting methodology. The above ending market value includes
a cruals.
HIGHMARK® PARS: Central Contra Costa Sanitary District
12
CAPITAL MANAGEMENT
Asset Allocation - Central Contra Costa Sanitary District Pension
As of Fourth Quarter 2018
Current Asset Allocation Investment Vehicle
Equity 30.67% Range: 20%-40% 1,729,875
Large Cap Core 6.15% IVV iShares Core S&P 500 346,970
4.02% VGIAX Vanguard Growth & Income Adm 227,028
Large Cap Value 4.10% IVE iShares S&P 500 Value 231,105
Large Cap Growth 2.57% IVW iShares S&P 500 Growth 144,945
Mid Cap Core 2.56% IWR iShares Russell MidCap Index Fund 144,227
Small Cap Value 2.75% UBVFX Undiscovered Managers Behavioral Val R6 154,995
Small Cap Growth 1.76% PRJIX T. Rowe Price New Horizons Fund 1 99,530
International Core 1.52% VEA Vanguard FTSE Developed Markets ETF 85,887
International Value 1.25% DODFX Dodge & Cox International Stock Fund 70,582
International Growth 1.25% MGRDX MFSO International Growth Fund Class R6 70,620
Emerging Markets 1.72% HHHYX Hartford Schroders Emerging Mkts Eq Y 96,792
Real Estate 1.01% VNQ Vanguard REIT ETF 57,195
Fixed Income 64.17% Range: 50%-80% 3,619,562
42.75% Core Fixed Income Portfolio 2,411,215
Short-Term 6.46% VFSUX Vanguard Short-Term Corp Adm Fund 364,403
Intermediate-Term 7.49% PTTRX PIMCO Total Return Instl Fund 422,195
7.48% PTRQX Prudential Total Return Bond Q 421,749
Cash 5.16% Range: 0%-20% 291,024
5.16% FGZXX First American Government Oblig Z 291,024
TOTAL 100.00% $5,640,461
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
13
CAPITAL MANAGEMENT
Selected Period Performance
PARS/CCCSD 115P - PENSION
Account6746055901
Period Ending: 12/31/2018
Year Inception
to Date to Date
3 Months (1 Year) (16 Months)
Cash Equivalents .54 1.71 1.51
Lipper Money Market Funds Index .51 1.62 1.43
Fixed Income ex Funds 1.35 .10 .13
Total Fixed Income 1.32 .08 .06
BBG Barclays US Aggregate Bd Index 1.64 .01 -.06
Total Equities -13.78 -8.04 -.73
Large Cap Funds -13.08 -4.84 2.54
S&P 500 Composite Index -13.52 -4.38 3.04
Mid Cap Funds -15.05 -8.82 -.92
Russell Midcap Index -15.37 -9.06 -.65
Small Cap Funds -19.23 -9.23 -.08
Russell 2000 Index -20.20 -11.01 -1.73
International Equities -11.17 -14.98 -7.52
MSCI EAFE Index -12.54 -13.79 -5.99
MSCI EM Free Index -7.46 -14.57 -6.51
Real Estate-ETFs/Sctr Fds -5.76 -5.25 -3.35
Wilshire REIT Index -6.93 -4.84 -2.48
Total Managed Portfolio -3.37 -2.28 -.27
CCCSD Pension -3.38 -1.87 .38
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 ll, and 5%Citigroup 1 Month T-Bill Indexes. Returns are gross-of-fees unless otherwise noted. Returns for periods over one year are annualized. The
information presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank
guarantee, and may lose value.
JHIGHMARK@ PARS: Central Contra Costa Sanitary District
13
CAPITAL MANAGEMENT
Fixed Income Portfolio: Statistics
As of Fourth Quarter 2018
CCCSD BC Aggregate Bond
Pension Index
Weighted Average Maturity 6.55 years 8.01 years
Effective Duration 5.16 years 5.93 years
Average Coupon 3.19% 3.19%
Yield to Maturity 3.43% 3.27%
Average Quality Aa3 Aa2
JHIGHMARK PARS: Central Contra Costa Sanitary District
14
CAPITAL MANAGEMENT
Fixed Income Portfolio: Sectors
As of Fourth Quarter 2018
45_01':.,
40-0",
35.0%
30.0%
25.0°/0
20.0%
15-0%
10.0%
5.0% -
0.0% Cash Treasury Agency Corp Ikon-Corp MBS CMO ABS CMBS
aCCCSD Pension 0.0% 26.7% 0.0% 44.9% 0.0% 19.6% 0.0% 8.9% 0.0%
■Barclays U.S.Aggregate Bond Index 0.0% 40.0% 1.4% 24.8% 4.6°/6 26.7% 0.0% 0.511/6 2.1%
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
15
CAPITAL MANAGEMENT
Fixed Income Portfolio: Effective Duration and Effective Maturity
As of Fourth Quarter 2018
Effective Duration Effective Maturity
25% -
3 5 1/6
5%351/6
30%
20% -
15%
0%15%
1�..
10%
10°Io
5%
5%
0%
0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. Yrs Y0 0%
�a 0-1 Yr, 1-3 Yrs. 3-5 Yrs. 5-7 Yrs, 7-10 Yrs. 10+Yrs.
■CCCSD Pension 5.53% 20.38% 28.00% 29.79% 8.30% 8.00% ■CCCSD Pension 5.53% 17.41% 22.06% 22.59% 22.29% 10.11%
BC Aggregate Bond Index 0.22% 24.25% 32.14% 21.41% 7.23% 14.75% BC Aggregate Bond Index 0.09% 21.90% 19.68% 22.05% 20.31% 15.97%
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
16
CAPITAL MANAGEMENT
Holdings-Reporting as of Trade Date
Account:6746055901- PARS/CCCSD 115P- PENSION
As of:31-Dec-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Cash&Cash Equivalents ARST AMERNGOVT OBLIGFDCIL Z#3676 FGZXX 291,023.7600 $1.0000 $291,023.76
Equities DODGE&COX INTL STOCK FD(CLSD)41048 DODFX 1,912.2730 $36.9100 $70,582.00
Equities HARTFORDSCHRODR MKTS EQCLY#1842 HHHYX 6,968.4310 $13.8900 $96,791.51
Equities MFS INTERNATIONAL GROWTH R644805 MGRDX 2,386.6050 $29.5900 $70,619.64
Equities T ROWE PRICE NEW HORIZONS FD 4532 PRJIX 2,062.3730 $48.2600 $99,530.12
Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 2,895.4880 $53.5300 $154,995.47
Equities VANGUARD GRO&INC ADMIRALSHRS 4593 VGIAX 3,329.3430 $68.1900 $227,027.90
Equities ISHARES RUSSELL MIDCAP ETF IWR 3,103.0000 $46.4800 $144,227.44
Equities ISHARES S&P 500 GROWTH ETF IVW 962.0000 $150.6700 $144,944.54
Equities ISHARES S&P 500 VALUE ETF IVE 2,285.0000 $101.1400 $231,104.90
Equities ISHARES TR CORE S&P500 ETF IVV 1,379.0000 $251.6100 $346,970.19
Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 2,315.0000 $37.1000 $85,886.50
Equities VANGUARD REAL ESTATE ETF VNQ 767.0000 $74.5700 $57,195.19
Fixed Income PIMCO TOTAL RETURN INSTL 435 PTTRX 42,517.0830 $9.9300 $422,194.63
Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 30,276.3350 $13.9300 $421,749.35
Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 34,904.5210 $10.4400 $364,403.20
Fixed Income EL PASO ENERGY CORP 7.800% 8/01/31 EP31 20,000.0000 119.803% $23,960.60
Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 10,000.0000 116.333% $11,633.30
Fixed Income CC CCIT 2014-A1 2.880% 1/23/23 CC22823A 52,000.0000 99.946% $51,971.92
Fixed Income CIT 2012-4A A 1.580% 8/16/21 C2A1521B 30,000.0000 99.186% $29,755.80
Fixed Income HAROT 2017-4A3 2.050% 11/22/21 H2A2121A 20,000.0000 99.010% $19,802.00
Fixed Income TACT 2016-D A3 1.230% 10/15/20 T2A1220A 14,991.0900 99.308% $14,887.35
Fixed Income UNITED STATES TREAS 2.750% 6/30/23 UST0023B 5,000.0000 100.520% $5,026.00
Fixed Income UNITED STATES TREAS 2.875% 8/15/28 UST2828A 35,000.0000 101.547% $35,541.45
Fixed Income US TREAS NTS 1.500% 11/30/19 UTN1519E 50,000.0000 98.969% $49,484.50
Fixed Income US TREAS NTS 1.875% 1/31/22 UTN0022B 20,000.0000 98.219% $19,643.80
Fixed Income US TREAS NTS 2.000% 5/31/24 UTN2024A 90,000.0000 97.297% $87,567.30
Fixed Income WELLS FARGO&CO NEW 3.000%10/23/26 WFC3026A 40,000.0000 92.572% $37,028.80
Fixed Income ABBOTT LABS SR NT 3.750% 11/30/26 ALS3726 17,000.0000 98.760% $16,789.20
Fixed Income AMERICAN EXPRESS CO 3.000%10/30/24 AEC3024 30,000.0000 95.694% $28,708.20
Fixed Income AMERICAN INTL GROUP 2.300% 7/16/19 AIG2319 20,000.0000 99.588% $19,917.60
JHIGHMARK@ PARS: Central Contra Costa Sanitary District
18
CAPITAL MANAGEMENT
Holdings-Reporting as of Trade Date
Account:6746055901-PARS/CCCSD 115P- PENSION
As of:31-Dec-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Fixed Income AMXCA 2017-3 A 1.770% 11/15/22 A2A1122 25,000.0000 98.569% $24,642.25
Fixed Income AT&T INC NTS 4.125% 2/17/26 AIN4126 25,000.0000 97.720% $24,430.00
Fixed Income AVALON BAY CMNTYS INC 3.450% 6/01/25 AC13425 20,000.0000 98.346% $19,669.20
Fixed Income BB&T CORP SR MTN 2.850%10/26/24 BCS2824 35,000.0000 96.077% $33,626.95
Fixed Income BECTON DICKINSON BDS 2.133% 6/06/19 BDB2119 20,000.0000 99.418% $19,883.60
Fixed Income BK OF AMERICA CORP 4.000% 4/01/24 BOA4024 35,000.0000 100.554% $35,193.90
Fixed Income BK OF MONTREAL MTN 2.350% 9/11/22 BOM2322 20,000.0000 96.600% $19,320.00
Fixed Income BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 20,000.0000 97.818% $19,563.60
Fixed Income BK OF NY MELLON MTN 2.050% 5/03/21 BON2021 20,000.0000 97.603% $19,520.60
Fixed Income CAPITAL ONE BK USA 3.375% 2/15/23 COB3323 25,000.0000 96.557% $24,139.25
Fixed Income CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 30,000.0000 97.375% $29,212.50
Fixed Income CELGENE CORP NT 3.250% 2/20/23 CC33223 25,000.0000 97.645% $24,411.25
Fixed Income CHAIT 2016-A4 A 1.490% 7/15/22 C2A1422 25,000.0000 97.821% $24,455.25
Fixed Income CITIGROUP INC 3.200% 10/21/26 C133226 25,000.0000 92.319% $23,079.75
Fixed Income COMCAST CORP NEW SR 4.150%10/15/28 CCN4128 30,000.0000 101.543% $30,462.90
Fixed Income CONCHO RES INC 4.300% 8/15/28 CR14328 10,000.0000 97.820% $9,782.00
Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 20,000.0000 97.261% $19,452.20
Fixed Income DOWDUPONT INC 5.319%11/15/38 D155338 25,000.0000 102.968% $25,742.00
Fixed Income ECOLAB INC SR NT 2.375% 8/10/22 EIS2322 20,000.0000 96.476% $19,295.20
Fixed Income ENBRIDGE INC 2.900% 7/15/22 E122922 20,000.0000 96.776% $19,355.20
Fixed Income ENTERPRISE PRODS NT 3.350% 3/15/23 EPN3323 20,000.0000 98.634% $19,726.80
Fixed Income ERP OVER LTD PRTN NT 4.625%12/15/21 EOL4621 25,000.0000 103.462% $25,865.50
Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 32,932.9800 98.889% $32,567.09
Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 37,832.3000 97.827% $37,010.20
Fixed Income FGLMC#J30401 3.000% 1/01/30 J30401F 29,352.0600 100.117% $29,386.40
Fixed Income FGLMC G08701 3.000% 4/01/46 G08701F 30,492.9100 97.582% $29,755.59
Fixed Income FHLMC G08823 3.5000%7/1/2048 G08823F 61,348.4800 99.976% $61,333.76
Fixed Income FHLMC G15252 3.0000% 12/1/2029 G15252F 35,504.6600 100.118% $35,546.56
Fixed Income FIFTH THIRD BAN CORP 2.600% 6/15/22 FTB2622 25,000.0000 97.275% $24,318.75
Fixed Income FNMA#AB3678 3.500%10/01/41 AB3678A 43,453.1200 100.781% $43,792.49
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
19
CAPITAL MANAGEMENT
Holdings-Reporting as of Trade Date
Account:6746055901- PARS/CCCSD 115P- PENSION
As of:31-Dec-2018
Asset Type Asset Name Ticker Shares/Units Price Market Value
Fixed Income F N MA A L9376 3.0000%8/1/2031 AL9376A 34,997.2600 99.913% $34,966.81
Fixed Income FNMA AS7729 3.0000%8/1/2046 AS7729A 42,013.9700 97.652% $41,027.48
Fixed Income FNMA BC1486 3.0000%8/1/2046 BC1486A 40,891.0300 97.652% $39,930.91
Fixed Income FNMA MA2779 2.0000%10/1/2026 MA2779A 34,152.6900 99.074% $33,836.44
Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 54,235.3800 101.222% $54,898.14
Fixed Income GENERAL MTRS FIN L CO 4.000% 10/06/26 GMF4026 25,000.0000 89.782% $22,445.50
Fixed Income GEORGIA PAC CORP 8.000% 1/15/24 GPC8024 25,000.0000 120.060% $30,015.00
Fixed Income HALLIBURTON CO BIDS 3.800%11/15/25 HCB3825 20,000.0000 96.899% $19,379.80
Fixed Income HAIR 2017-4A-4 2.210% 3/21/24 H222224 25,000.0000 98.524% $24,631.00
Fixed Income HEWLETT PACKARD CO NT4.375% 9/15/21 HPC4321 20,000.0000 102.005% $20,401.00
Fixed Income HSBC HLDGS 2.950% 5/25/21 HSBC21C 20,000.0000 98.711% $19,742.20
Fixed Income JPMORGAN CHASE NTS 3.200% 1/25/23 JCN3223 30,000.0000 98.543% $29,562.90
Fixed Income KEY BANK NA 2.250% 3/16/20 KBN2220 10,000.0000 98.938% $9,893.80
Fixed Income MACY'S RETAIL HLDGS 4.375% 9/01/23 MRH4323 20,000.0000 98.675% $19,735.00
Fixed Income MAGELLAN MIDSTREAM 5.000% 3/01/26 MM55026 25,000.0000 104.528% $26,132.00
Fixed Income MIDAMERICAN ENERGY 3.750% 11/15/23 ME33723 30,000.0000 101.420% $30,426.00
Fixed Income NORFOLK SOUTHERN COR 4.150% 2/28/48 NSC4148 10,000.0000 93.308% $9,330.80
Fixed Income QUEST DIAGNOSTICS BD 3.500% 3/30/25 QDB3525 25,000.0000 97.516% $24,379.00
Fixed Income SHIRE ACQINV IRELAND2.875% 9/23/23 SA12823 20,000.0000 94.532% $18,906.40
Fixed Income TAOT 2017-D A3 1.930% 1/18/22 T2A2222 25,000.0000 98.607% $24,651.75
Fixed Income TIME WARN ER CABLE NT 7.300% 7/01/38 TWC7338 15,000.0000 108.406% $16,260.90
Fixed Income TRANSCONTINENTAL GAS 7.850% 2/01/26 TG77826 25,000.0000 120.889% $30,222.25
Fixed Income UNTD AIR 2013-1 4.300% 8/15/25 UA24325 32,099.4800 102.099% $32,773.25
Fixed Income US TREAS BIDS 3.625% 8/15/43 UTB3643 80,000.0000 110.691% $88,552.80
Fixed Income US TREAS NTS 1.625% 4/30/23 UTN1623 25,000.0000 96.426% $24,106.50
Fixed Income US TREAS NTS 1.750% 2/15/26 UTN1726 30,000.0000 93.609% $28,082.70
Fixed Income US TREAS NTS 2.000% 2/15/25 UTN2025 50,000.0000 96.731% $48,365.50
Fixed Income US TREAS NTS 2.250% 11/15/25 UTN2225 30,000.0000 97.793% $29,337.90
Fixed Income US TREAS NTS 2.375% 5/15/27 UTN2327 75,000.0000 97.906% $73,429.50
Fixed Income US TREAS NTS 2.375% 12/31/20 UTN2320 95,000.0000 99.777% $94,788.15
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
Zo
CAPITAL MANAGEMENT
Holdings-Reporting as of Trade Date
Account:6746055901- PARS/CCCSD 115P- PENSION
As of:31-Dec-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 101.484% $60,890.40
Fixed Income VERIZON COMM SR NT 4.125% 3/16/27 VC44127 10,000.0000 100.077% $10,007.70
Fixed Income BOSTON PPTYS LTD PAR 2.750%10/01/26 BXP26A 20,000.0000 90.322% $18,064.40
Fixed Income ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 20,000.0000 95.869% $19,173.80
Fixed Income FORD MTR CO NTS 7.450% 7/16/31 F31 25,000.0000 103.102% $25,775.50
Fixed Income VERIZON COMMUNICATIO5.250% 3/16/37 20,000.0000 104.167% $20,833.40
SUBTOTALS
Cash&Cash Equivalents $291,023.76
Equities $1,729,875.40
Fixed Income $3,619,562.32
TOTALS $5,640,461.48
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
21
CAPITAL MANAGEMENT
CENTRAL CONTRA COSTA SANITARY DISTRICT
For Period Ending December 31 , 2018
LARGE CAP EQUITY FUNDS
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) -13.53 43 -4.42 26 -4.42 26 9.21 16 8.44 11
iShares S&P 500 Value ETF (4/17) -12.08 42 -9.09 57 -9.09 57 7.06 45 5.89 38
Vanguard Growth & Income Adm (12/16) -14.22 65 -4.61 31 -4.61 31 8.91 28 8.52 9
iShares S&P 500 Growth ETF (4/17) -14.72 38 -0.17 29 -0.17 29 10.67 25 10.36 16
S&P 500 TR USD -13.52 -- -4.38 -- -4.38 -- 9.26 -- 8.49 --
dn� MID CAP •
iShares Russell Mid-Cap ETF (3/16) -15.33 36 -9.13 30 -9.13 30 6.89 43 6.10 16
Russell Mid Cap TR USD -15.37 -- -9.06 -- -9.06 -- 7.04 -- 6.26 --
SMALL CAP EQUITY FUNDS
Undiscovered Managers Behavioral Val R6 (9/16) -20.42 68 -15.20 49 -15.20 49 5.21 47 4.99 6
Russell 2000 Value TR USD -18.67 -- -12.86 -- -12.86 -- 7.37 -- 3.61
T. Rowe Price New Horizons 1 -17.01 47 4.17 4 4.17 4 13.98 2 10.43 2
Russell 2000 Growth TR USD -21.65 -- -9.31 -- -9.31 -- 7.24 -- 5.13 --
• •
Dodge & Cox International Stock -12.39 43 -17.98 81 -17.98 81 3.24 40 -0.48 43
Vanguard FTSE Developed Markets ETF (9/18) -13.05 60 -14.47 51 -14.47 51 3.49 33 0.85 25
MFS International Growth R6 -11.74 19 -8.79 9 -8.79 9 7.52 4 3.46 12
MSCI EAFE NR USD -12.54 -- -13.79 -- -13.79 -- 2.87 -- 0.53 --
Hartford Schroders Emerging Mkts Eq Y -8.85 74 -15.42 45 -15.42 45 9.67 17 1.90 20
IMSCI EM Free Index -7.47 -- -14.58 -- -14.58 -- 9.25 -- 1.65
Data Source: Morningstar, SEI Investments
Returns less than one year are not annualized. Past performance is not indicative of future returns. The information presented has been obtained from sources
believed accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value.
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
21
CAPITAL MANAGEMENT
CENTRAL CONTRA COSTA SANITARY DISTRICT
For Period Ending December 31 , 2018
REIT EQUITY FUNDS
3-Month YTD 1-Year 3-Year 5-Year
Fund Name Inception Return Rank Return Rank Return Rank Return Rank Return Rank
Vanguard Real Estate ETF (4/17) -6.46 34 -5.95 58 -5.95 58 2.32 46 7.40 44
Wilshire REIT Index -6.93 -- -4.84 -- -4.84 -- 2.06 -- 7.87 --
PIMCO Total Return Instl 1.39 32 -0.26 39 -0.26 39 2.47 32 2.56 31
PGIM Total Return Bond R6 (5/16) 1.36 33 -0.63 57 -0.63 57 3.59 5 3.59 3
Vanguard Short-Term Investment-Grade Adm 0.67 44 0.96 59 0.96 59 1.97 26 1.78 18
BBgBarc US Agg Bond TR USD 1.64 -- 0.01 -- 0.01 -- 2.06 -- 2.52
Data Source: Morningstar, SEI Investments
Returns less than one year are not annualized. Past performance is not indicative of future returns. The information presented has been obtained from sources
believed accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value.
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
22
CAPITAL MANAGEMENT
Attachment 3
PARS: Central Contra Costa Sanitary District
OPEB and Pension Plan
January 31 , 2019
Presented by
Andrew Brown, CFA
J HIGHMARKC
CAPITAL MANAGEMENT
Selected Period Performance
CCCSD - OPEB
Period Ending: 1/31/2019
Inception
to Date
❑ 1 Month 3 Months 1 Year 3 Years 5 Years 04/01/2009 ❑
Cash Equivalents .19 .55 1.79 .96 .59 .36
Lipper Money Market Funds Index .19 .54 1.72 .87 .52 .28
Fixed Income ex Funds 1.33 3.37 2.33
Total Fixed Income 1.24 3.11 2.17 2.61 2.32 4.30
BBG Barclays US Aggregate Bd Index (USD) 1.06 3.53 2.25 1.95 2.44 3.64
Total Equities 9.11 1.32 -4.24 13.12 7.97 13.68
Large Cap Funds 7.93 .31 -2.73 13.86 9.79 14.55
S&P 500 Composite Index 8.01 .26 -2.31 14.02 10.96 15.61
Mid Cap Funds 10.61 2.21 -3.19 13.39 7.14
Russell Midcap Index 10.79 2.25 -2.90 13.29 8.89 16.59
Small Cap Funds 12.69 -.07 .01 15.67 9.19 17.59
Russell 2000 Index (USD) 11.25 -.41 -3.52 14.71 7.26 15.29
International Equities 8.29 4.91 -13.56 9.41 3.70 8.66
MSCI EAFE Index(Net) 6.57 1.27 -12.51 7.74 2.66 8.77
MSCI EM Free Index (Net USD) 8.76 10.24 -14.24 14.89 4.77 8.98
Real Estate- ETFs/ Sctr Fds 11.85 8.13 10.05
Wilshire REIT Index 11.46 6.93 10.29 7.26 9.40 18.55
Total Managed Portfolio 5.23 2.56 -.74 7.86 5.23 9.00
CCCSD OPEB 4.86 2.28 -.67 7.63 5.59
Account Inception:4/2009
CCCSD OPEB Benchmark consists of: 26.5%of S&P 500,5% Russell Midcap,7.5%Russell 2000, 1.75%Wilshire REIT,3.25%MSCI EM Free,6%MSCI EAFE,33.5%BC Aggregate, 10%ML 1-3
Yr US Corp/Govt, 1.5% ML US High Yield Mstr II,and 5%Citigroup 1 Month T-Bill Indexes. Returns are gross-of-fees unless otherwise noted. Returns for periods over one year are annualized.The
information presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank
guarantee, and may lose value.
JHIGHMARK@ PARS: Central Contra Costa Sanitary District
CAPITAL MANAGEMENT
Selected Period Performance
PARS/CCCSD 115P - PENSION
Account 6746055901
Period Ending: 1/31/2019
Inception
to Date
1 Month 3 Months 1 Year 09/01/2017
Cash Equivalents .20 .56 1.81 1.56
Lipper Money Market Funds Index .19 .54 1.72 1.49
Fixed Income ex Funds 1.24 3.32 2.34 .99
Total Fixed Income 1.20 3.14 2.23 .90
BBG Barclays US Aggregate Bd Index (USD) 1.06 3.53 2.25 .69
Total Equities 9.02 1.52 -4.31 5.56
Large Cap Funds 7.95 .58 -2.52 8.07
S&P 500 Composite Index 8.01 .26 -2.31 8.61
Mid Cap Funds 10.61 2.39 -2.75 6.45
Russell Midcap Index 10.79 2.25 -2.90 6.84
Small Cap Funds 12.66 .01 -.43 8.69
Russell 2000 Index (USD) 11.25 -.41 -3.52 6.06
International Equities 8.07 4.54 -13.62 -1.86
MSCI EAFE Index (Net) 6.57 1.27 -12.51 -1.31
MSCI EM Free Index (Net USD) 8.76 10.24 -14.24 -.41
Real Estate- ETFs/ Sctr Fds 11.85 8.59 10.69 4.81
Wilshire REIT Index 11.46 6.93 10.29 5.44
Total Managed Portfolio 3.51 2.78 .33 2.20
CCCSD Pension 3.29 2.59 .50 2.68
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.
JHIGHMARKe PARS: Central Contra Costa Sanitary District
CAPITAL MANAGEMENT