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HomeMy WebLinkAbout04.a. Review and provide input on Highmark Capital Management Government Accounting Standards Board (GASB) 45 Other Post-Employment Benefits (OPEB) and Pension Pre-funding Sub-trust Reports for the Third Quarter of calendar year 2019 Page 1 of 28 Item 4.a. Av CENTRAL SAN October 22, 2019 TO: FINANCE COMMITTEE FROM: KEVIN MIZUNO, FINANCE MANAGER REVIEWED BY: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION ANN SASAKI, DEPUTY GENERAL MANAGER ROGER S. BAILEY, GENERAL MANAGER SUBJECT: REVIEW AND PROVIDE INPUT ON HIGHMARK CAPITAL MANAGEMENT GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB)45 OTHER POST-EMPLOYMENT BENEFITS (OPEB)AND PENSION PRE-FUNDING SUB-TRUST REPORTS FOR THE THIRD QUARTER OF CALENDAR YEAR 2019 Attached for review are the most recent Highmark overview and GASB 45 OPEB Sub-Trust and Pension Pre-funding Sub-Trust Reports. A representative from Highmark Capital Management is expected to attend the meeting. An overview slide showing the entities involved in administering the OPEB and Pension Prefunding Trusts for Central San is also attached. Strategic Plan re-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. Overview of Entities Administering Trusts 2. Highmark Overview of 3rd Quarter 2019 3. PARS Investment Report 3rd Quarter 2019 October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 101 of 168 ATTACHMENT 1 PARS TRUST TEAM AGFNCY PARS bank® -AHIGHMARK° RE7IREMFM SERVH�S CAPITAL MANAGEMENT TRUSTED SOLUTIONS.LASTING RESULTS. Trust Administrator & Consultant Trustee Investment Manager • Record keeping/sub-trust accounting Safeguard plan assets 0 Investment sub-advisor • Actuarial coordination 0Oversight protection to U.S. Bank • Monitor contributions/process • Plan fiduciary • Open architecture disbursements Custodian of assets Investment strategy and asset • Monitor plan compliance allocation development • Ongoing client liaison Investment policy assistance Corporate Experience 35 years (1984- 2019) 156 years (1863 - 2019) 100 years (1919 - 2019) Plans Under Administration 1,600+ plans, 850+ public agencies, 400,000+ participants Dollars under Administration Over $3.6 billion Over $5.0 trillion Over $15.8 billion under management I. PARS REMEMENT SERVICES TRUSTED SqL fflbL4STM!t 66% Regular FINANCE Committee Meeting Agenda Packet- Page 102 of 168 Page 3 of 28 ATTACHMENT 2 HIGHMARKO CAPITAL MANAGEMENT October 15, 2019 Phil Leiber Director of Finance and Administration Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553-4392 RE: 3Q Quarter 2019 OPEB/Pension Report Dear Mr. Leiber, Unlike the first half of 2019, a largely a one-directional affair that saw stocks and bonds rally in unison, global financial markets took many twists and turns in the third quarter. Equity markets rallied in July only to sell off in August under increasing trade policy uncertainty and a Federal Reserve (Fed) announcement that was not as dovish as investors desired. Following a brief thawing of trade tensions, September saw equity markets claw back the lost gains and the S&P 500 Index finished the third quarter up 1.7%. But bonds sold off aggressively to begin the month after better than expected economic data challenged the recessionary narrative embedded in the flattening of the yield curve. Despite a brief spike in early September, the yield on the bellwether 10-year Treasury Note fell 34 basis points to 1.66 percent over the course of the quarter- a continuation of a persistent downtrend that began in mid-November 2018 when the yield hit a seven-year high-water mark of 3.24 percent. In keeping with the Fed's January dovish pivot that helped spur the equity markets recovery, the Fed cut the Fed Funds rate twice in the third quarter. Chairman Powell attempted to manage investor's expectations by characterizing the easing as a precautionary "mid-cycle adjustment." "We can't understate the unpredictability of this unique set of macroeconomic circumstances, both in terms of their root cause and how they will be dealt with from a monetary policy perspective." As Chairman Powell said in his Jackson Hole speech regarding the Fed's ability to incorporate the trade war into its playbook: "There are...no recent precedents to guide any policy response to the current situation." As markets struggle to handle potentially increasing risk premiums, asset class price discovery may be complicated by the fact that many global economies operate in an environment of zero or negative interest rates which destroy both savings and investment: the foundations of future economic growth. Negative rates also distort how investors analyze investment decisions, because prices convey information, lack of accurate prices delivers misinformation and unproductive capital allocation. Negative rates create a black hole into which historical financial relationships and approaches are at risk of no longer being in force. We expect the impact of negative rates and unconventional central bank policies to play out over many months, and is an additional consideration that adds to the difficulties in asset allocation. October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 103 of 168 Page 4 of 28 ATTACHMENT 2 Plan Performance The Central Contra Costa Sanitary District OPEB Plan returned 1.19% gross of investment fees for the third quarter. The return slightly exceeded the District's OPEB Plan Benchmark target of 1.13%. In a quarter where the Fed reduced rates on two occasions, bonds performed favorably with the Bloomberg Barclays Aggregate returning 2.3%. Increasing geopolitical risks, and dovish central banks globally also supported fixed income prices in the quarter. At the end of the quarter, the fixed income market was discounting one additional interest rate cut by the Fed before the end of the year. At the manager level, the Prudential Total Return Bond Fund posted another strong quarterly result, returning 2.7%, which outperformed the Bloomberg Barclays Aggregate Index target return of 2.3%. The Fund's benchmark positioning was rewarded with the decline in interest rates. The managers are beginning to reduce their exposure to credit, favoring more conservative areas of the fixed income landscape. The Pimco Total Return Bond Fund slightly outpaced the benchmark, returning 2.4%. The internally managed fixed income portfolio slightly lagged the benchmark, posting a 2.0% return. The manager's duration positioning of 5.3 years, served as a detractor to performance relative to the benchmark of 5.8 years. In a similar manner, the OPEB Plan's allocation to the Vanguard Short-Term Fixed Income Fund (+1.0%) also was a detractor relative to the intermediate term benchmark. Overall, the Plan's fixed income segment generated a return of 2.1% vs. the benchmark return of 2.3%. The Plan's equity segment generated a 0.5% return in the quarter. Domestic equity indices were mainly in the black for the quarter. The S&P 500 Index was up 1.7%, which extended the year-to-date gains for this index to 20.5%. As well, the Russell Mid- cap Index was up slightly, posting a 0.5% return. Small cap stocks, as measured by the Russell 2000 Index were in negative territory, returning -2.4%. Conventional wisdom would think small cap stocks would be less impacted by the fall-out related to trade war activities. However, some market participants point to the decline in small cap stocks as perhaps being an early indicator of possible future recession risks. For the trailing twelve month period ending September 30, 2019, the Russell 2000 Index was down -8.9%. The sell-off in growth related stocks in the month of September extended to the small cap space, with the Victory RS Small Cap Growth Fund returning -7.3% in the quarter. Our small cap value manager, the Undiscovered Managers Behavioral Value Fund outperformed the benchmark, but in the third quarter, that merely equated to losing less than the benchmark, as the Fund was down -1.3% for the quarter. The leading equity market in the third quarter was once again REITs, up 7.9%. Our investment in the Vanguard REIT ETF returned 7.4%, which likely reflect investor's thirst for yield, and for investments that have less of a correlation with global trade issues. With Brexit uncertainty in high gear, Germany and Italy struggling to show any economic growth, and China trade issues spilling over into other global trading markets, international markets were under pressure in the quarter. The threat to international markets is focused on the risks that a deepening trade war would exacerbate the current global slowdown in growth. An added negative for international markets was the drone attack in September on major Saudi Arabian production facilities that temporarily impacted roughly 6% of the global supply of oil. While initially oil markets spiked in reaction to the attacks, oil prices have declined to prior price levels due mainly to the backstop of U.S. domestic crude supplies. The combination of the above factors October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 104 of 168 Page 5 of 28 ATTACHMENT 2 contributed to the MSCI-EAFE International equity Index declining -1.1%, and the MSCI- Emerging Market Index declining -4.3% in the quarter. The Plan's international equity managers performed relatively in-line with our underlying benchmark targets. Our target positioning at quarter-end for the OPEB Plan stood at 48% stocks, 49% bonds, and 3% in cash. This would represent a 3% reduction in our equity target from when we began the quarter in July. Our concerns prompting a reduction to stocks are focused on the global slowdown, issues related to Brexit, the somewhat expensive domestic large cap equity market, and the heightened concerns surrounding the escalating trade tensions between the U.S. and China. The Central Contra Costa Sanitary District Pension Plan returned 1.52% in the quarter, gross of investment fees, which outpaced the District's Plan benchmark target of 1.41%. Performance contributions from the various asset class segments were similar to the OPEB Plan, with large cap and mid cap equity offering benchmark matching returns, and small cap equity lagging in the quarter. The outperformance in the quarter, relative to the Pension Plan benchmark, came from an overweight to fixed income, an overweight to REITs, and relative outperformance vs. the benchmark, from our emerging market equity manager. The target asset allocation for the pension plan was amended to reflect an underweight allocation to stocks as of the end of the quarter. We are targeting an allocation of 29% stocks, and a fixed income/cash allocation of 71%. Andrew Brown October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 105 of 168 Attachment 3 PARS: Central Contra Costa Sanitary District OPEB and Pension Plan Third Quarter 2019 Presented by Andrew Brown, CFA l HIGH CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 106 of 168 CCCSD — OPEB Jnvestment Beginning Value 566,683.26 Asset Allocation Contributions 104,942,930.22 Withdrawals -63,859,157.79 Total Assets: $66,636,157 Gain(Loss) 11,692,236.51 Interest and Dividends 13,193,465.01 Period Ending: 9-30-2019 Net Accrued Income 134.833.94 3Q19 Return: 1.19% Ending Market Value $66,670,991.15- 1 Year Return: 6.38% Inception-to-Date Return: 9.21 Cash Inception Date:4-1-2009 $ 1,401,2 6 Plan target rate of return: 6.25% 2.11% - Equity $31,827,136$31,827,136 47.830 Fixed Income) $33,307,736 50.06% * Ending Market Value differs from total market value on page 3 due to differences in reporting methodology.The above ending market value includes accruals. HIGHMARKO PARS: Central Contra Costa Sanitary District 2 CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 107 of 168 Attachment 3 Asset Allocation — Central Contra Costa Sanitary District OPEB As of Third Quarter 2019 Current Asset Allocation Investment Vehicle Equity 47.83% Ran2a 40%-60% 31,827,136 Large Cap Core 9.44% IVV iShares Core S&P 500 ETF 6,282,055 6.96% VGIAX Vanguard Growth A Income Adm 4,633,723 Large Cap Value 4.98% IVE iShares S&P 500 Value ETF 3,311,377 Large Cap Growth 4.95% IVW iShares S&P 500 Growth ETF 3,290;768 Mid Cap Core 4.22% IWR iShares Russell Mid-Cap ETF 2,809,865 Small Cap Value 3.49% UBVFX Undiscovered Managers Behavioral Val R6 2,319,163 Small Cap Growth 3.30% RSEJX Victory RS Small Cap Growth R6 2,196,592 International Core 1.98% VEA Vanguard FTSE Developed Markets ETF 1,318,545 International Value 1.48% DODFX Dodge& Cox International Stock Fund 985,415 .International Growth 1.50% MGRDX MFS® International Growth Fund Class R6 998,091 Emerging Markets 2.47% HHHFX Hartford Schroders Emerging Mkts Eq F 1,642,256 Real Estate 3.06% VNQ Vanguard Real Estate ETF 2,039,284 Fixed Income 50.06% Ran e:40%-60% 33,307,736 28.86% Core Fixed Income Portfolio 19,201,750 Short-Term 4.00% VFSUX Vanguard Short-Term Investment-Grade Adm 2,661,240 Intermediate-Term 8.60% PTTRX PIMCO Total Return Instl Fund 5,722,716. 8.60% PTRQX Prudential Total Return Bond Q 5,722,030 Cash 2.11% Range:0%-20% 1,401,286 2.11% FGZXX First American Government Oblig Z 1,401,286 TOTAL 100.00% $66,536,157 i HIGHMARK(m CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 108 of 168 Attachment 3 Selected Period Performance CCCSD - OPEB Period Ending: 9/30/2019 Year Inception to Date to Date 3 Months (9 Months) 1 Year 3 Years 5 Years 10 Years (126 Months) Cash Equivalents .52 1.67 2.20 1.39 .88 .47 .48 Jarket Funds index Fixed Income ex Funds 1.96 8.75 10.13 Total Fixed Income 2.05 8.65 10.04 3.34 3.38 4.00 4.72 jbU ttarclays Us Aggregate Bd Index U.0Z Total Equities .50 18.85 2.22 11.25 8.40 10.78 13.68 Large Cap Funds 1.71 20.04 4.09 13.18 10.20 12.23 14.72 500 f-nmposite Index 20.55 15.76 Mid Cap Funds .55 21.69 3.19 10.33 8.21 Rric.�al/Minlrnp Index .48 21.93 3.19 16.52 Small Cap Funds -4.20 16.08 -6.34 10.29 9.68 13.40 16.71 ?1-zeu 9000 Index -2.40 14.18 -8.89 .23 1.1 11.19 14.54 International Equities -1.78 12.44 .03 6.49 3.22 4.27 8.47 .lex -1.07 12.80 -1.34 6.48 4.90 8.77 rVISGI LM!-ree Index -4.25 5.89 -2.02 5.97 3.37 8.12 Real Estate-ETFs/Sctr Fds 7.53 28.20 20.31 Wilshire REIT mae> 7.88 27.21 18.39 7.21 10.17 13.06 18.76 Total Managed Portfolio 1.19 13.69 6.38 7.39 6.01 7.47 9.21 �c;csu UH!-1 1 13 12.61 "' 6.94 6.01 741 9.15 Account Inception:4/2009 CCCSD OPEB Benchmark consists of. 26.5%of S&P 500,5%Russell Midcap,7.5%Russell 2000, 11.75%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. HIGHMARK = r.APITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 109 of 168 Fixed Income Portfolio: Statistics Attachment 3 As of Third Quarter 2019 CCCSD BC Aggregate Bond OPER Index Weighted Average Maturity, 6.94 years 8.05 years Effective Duration 5.32 years 5.85 years Average Coupon 3.10% 3.20% Yield to Maturity 2.35% 2.28% Average Quality Aa3 Aa2 HIGH KG CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 110 of 168 Attachment 3 Fixed Income Portfolio: Sectors As of Third Quarter 2019 45.0% 40.0% 35.0% - 30.0% 25.0% — 20.0% 15.0% 10.0% 5.0% - 0.0% Cash Treasury Agency Corp Non-Corp MBS CMO ABS CMBS CCCSD OPEB 0.00/0 25.3% 0.00/0 40.3% 0.8% 24.8% 0.0% 8.7% 0.00/0 ■Barclays U.S.Aggregate Bond Index 0.00/0 40.0% 1.2% 24.8% 4.3% 27.2% 0.0% 0.4% 2.1% HIGHMARK- CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 111 of 168 Fixed Income Portfolio: Effective Duration and Effective Maturity Attachment 3 As of Third Quarter 2019 Effective Duration Effective Maturity 35% 30% 30% 25% — 25% 20% ---- -- 20% 15% -- — - 15% 10% — 10% 5% I! 5% 0°k 0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. Y�. Y�+ 0% 0-1 Yr. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 Yrs. 10+Yrs. ■CCCSD OPER 7.58% 30.11% 23.11% 19.33% 7.91% 11.96% a CCCSD OPEB 7.07% 16.33% 24.74% 23.84% 14.06% 13.96% SC Aggregate Bond Index 2.55% 32.53% 30.23% 11.26% 6.75% 16.69% BC Aggregate Bond Index 0.24% 22.01% 22.58% 26.78% 10.60% 17.79% HIGHMARK9 CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 112 of 168 Holdings-Reporting as of Trade Date Attachment 3 Account:6746055900-PARS/CCCSD 115P-OPEB As of:30-Sep-2019 Asset Type Asset Name Ticker Shares/Units Price Market Value Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 24,052.1180 $40.9700 $985,415.27 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 107,759.5850 $15.2400 $1,642,256.08 Equities ISHARES RUSSELL MIDCAP ETF IWR 5Q221.0000 $55.9500 $2,809,864.95 Equities ISHARES S&P 500 GROWTH ETF IVW 18,279.0000 $180.0300 $3,290,768.37 Equities ISHARES S&P 500 VALUE ETF IVE 27,794.0000 $119.1400 $3,311,377.16 Equities ISHARES TR CORE S&P500 ETF IVV 21,044.0000 $298.5200 $6,282,054.88 Equities MFS I NTERNATIONAL GROWTH R6#4805 MGRDX 28,888.3110 $34.5500 $998,091.15 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 37,685.4630 $61.5400 $2,319,163.39 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 32,097.0000 $41.0800 $1,318,544.76 Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 57,390.6740 $80.7400 $40633,723.02 Equities VANGUARD REAL ESTATE ETF VNQ 21,869.0000 $93.2500 $2,039,284.25 Equities VICTORY RS SM CAP GROW#279 RSEJX 28,215.7020 $77.8500 $2,196,592.40 Fixed Income PRUDENTIAL TOTAL RTRN BD CLQ PTRQX 380,707.2200 $15.0300 $5,722,029.52 Fixed Income PIMCO TOTAL RETURN INSTL #35 PTTRX 544,502.0410 $10.5100 $5,722,716.45 Fixed Income VNGRD STTERM INVMTGRADE ADM #539 VFSUX 247,787.7030 $10.7400 $2,661,239.93 Fixed Income ABBOTT LABS SR NT 3.750%11/30/26 ALS3726 152,000.0000 108.944% $165,594.88 Fixed Income CC CCIT 2014-A1 2.8800/. 1/23/23 CC22823A 275,000.0000 101.213% $278,335.75 Fixed Income HAROT2017-3A3 1.790% 9/20/21 H2A1721B 102,680.8600 99.916% $102,594.61 Fixed Income HAROT 2017-4A3 2.050•0/o 11/22/21 H2A2121A 250,700.7200 100.045% $250,813.54 Fixed Income TAOT 2016-D A3 1.230•/010/15/20 T2A1220A 11,853.9200 99.927% $11,845.27 Fixed Income UNITED STATES TREAS 2.875% 8/15/28 UST2828A 340,000.0000 109.953916 $373,840.20 Fixed Income US TREAS NTS 1.875% 1/31/22 UTNO022B 175,000.0000 100.555% $175,971.25 Fixed Income US TREAS NTS 2.000.0 5/31/24 UTN2024A 905,000.0000 101.996% $923,063.80 Fixed Income WELLS FARGO&CO NEW 3.000%10/23/26 WFC3026A 250,000.0000 102.699% $256,747.50 Fixed Income AMERICAN EXPRESS CO 3.000%10/30/24 AEC3024 185,000.0000 103.268% $191,045.80 Fixed Income AMXCA 2017-3 A 1.770%11/15/22 A2A1122 200,000.0000 99.860% $199,720.00 Fixed Income AMXCA 2017-6A 2.0409'o 5/15/23 \2A2023 100,000.0000 100.110% $100,110.00 Fixed Income ANHEUSER-BUSCH IN BEV 4.9009, 1/23/31 AI44919 65,000.0000 118.907% $77,289.55 Fixed Income AT&T INC NTS 4.125% 2/17/26 AIN4126 220,000.0000 108.022% $237,648.40 Fixed Income AVALONBAY CMNTYS INC 3.450% 6/01/25 ACI3425 155,000.0000 105.695% $163,827.25 HIGHMARK6 CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 113 of 168 Holdings-Reporting as of Trade Date Attachment 3 Account:6746055900-PARS/CCCSD 115P-OPEB As of:30-Sep-2019 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income BANK OF AMERICA CORP 3.194% 7/23/30 BOA3130 280,000.0000 103.132% $288,769.60 Fixed Income BB&TCORP SR MTN 2.850%10/26/24 BCS2824 210,000.0000 102.630% $215,523.00 Fixed Income BERKSHIRE HATHAWAY 4.250.0 1/15/49 BH44249 175,000.0000 118.388% $207,179.00 Fixed Income BK OF MONTREAL MTN 2.350% 9/11/22 BOM2322 205,000.0000 101.099% $207,252.95 Fixed Income BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 70,000.0000 101.749% $71,224.30 Fixed Income BK OF NY MELLON MTN 2.050% 5/03/21 BON2021 180,000.0000 100.075% $180,135.00 Fixed Income BP CAPITAL MARKETS .3.796% 9/21/25 BCM3725 170,000.0000 107.884% $183,402.80 Fixed Income CAPITALONE BK USA 3.375% 2/15/23 COB3323 220,000.0000 103.048% $226,705.60 Fixed Income CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 170,000.0000 101.639% $172,786.30 Fixed Income CELGENE CORP NT 3.250% 2/20/23 CC33223 175,000.0000 103.522% $181,163.50 Fixed Income CITIGROUP INC 3.200%10/21/26 C133226 220,000.0000 103.374916 $227,422.80 Fixed Income COMCAST CORP NEW SR 4.150%10/15/28 CCN4128 250,000.0000 112.173% $280,432.50 Fixed Income CONCHO RES INC 4.300% 8/15/28 CRI4328 175,000.0000 107.703% $188,480.25 Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 155,000.0000 113.493% $175,914.15 Fixed Income DOWDUPONTINC 5.319%11/15/38 DI55338 160,000.0000 122.057% $195,291.20 Fixed Income. ECOLAB INC SR NT 2.375% 8/10/22 EIS2322 80,000.0000 100.862% $80,689.60 Fixed Income ENBRIDGE INC 2.900% 7/15/22 E122922 150,000.0000 101.888410 $152,832.00 Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 162,892.4000 101.286% $164,987.20 Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 198,913.6000 102.980•0A $204,841.23 Fixed Income FGLMC#J 30401 3.000% 1/01/30 J30401F 161,100.0600 103.242% $166,322.92 Fixed Income FGLMC#Q13204 3.000%11/01/42 Q13204F 132,828.5100 103.151916 $137,013.94 Fixed Income FHLMC G08823 3.500% 7/01/48 G08823F 454,703.2400 102.772% $467,307.61 Fixed Income FHLMC G14702 2.5000%3/1/2023 G14702F 107,227.5200 100.911910 $108,204.36 Fixed Income FHLMC G15252 3.000%12/01/29 G15252F 132,448.1600 103.242% $136,742.13 Fixed Income FHLMC SB8006 3.000% 9/01/34 SB8006A 296,618.2100 102.259% $303,318.82 Fixed Income FHLMCV605863.0000%8/1/2029 V60586F 161,008.9200 103.117% $166,027.57 Fixed Income FIFTH THIRD BANCORP 2.600% 6/15/22 FTB2622 175,000.0000 101.07196 $176,874.25 Fixed Income FNMAAL81743.5000•D/o2/1/2046 AL8174A 300,880.8400 104.643% $314,850.74 Fixed Income FNMA AL89243.00004'o 12/1/2030 AL8924A 239,376.0200 102.9074:0 $246,334.68 Fixed Income FN MAAL93763.0000%8/1/2031 AL9376A 130,164.0600 102.694416 $133,670.68 HIGHMARK3 CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 114 of 168 Holdings-Reporting as of Trade Date Attachment 3 Account:6746055900-PARS/CCCSD 115P-OPEB As of:30-Sep-2019 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FNMAAL9861 3.000.0 8/01/30 AL9861A 373,584.6600 102.700% $383,671.45 Fixed Income FNMAAS4916 3.000'O0 5/01/30 AS4916A 267,064.7800 102.697% $274,267.52 Fixed Income FNMA AS7729 3.0000%8/1/2046 AS7729A 223,625.6700 102.615% $229,473.48 Fixed Income FN MA AT0293 3.00009e.3/1/2043 AT0293A 131,198.0000 103.108% $135,275.63 Fixed Income FNMA BC14863.00009e 8/1/2046 BC1486A 194,942.3700 102.615% $200,040.11 Fixed Income FNMA BM4913 3.000% 5/01/46 BM4913A 127,866.0200 103.039% $131,751.87 Fixed Income FNMA MA2779 2.0000%10/1/2026 MA2779A 132,536.2000 99.690% $132,125.34 Fixed Income FNMA MA2895 3.000% 2/01/47 MA2895A 162,774.9200 102.425% $166,722.21 Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 110,652.7400 103.437% $114,455.87 Fixed Income FNMA MA3332 3.5006A 3/01/48 MA3332A 195,551.8700 103.425% $202,249.52 Fixed Income FNMA MA3489 3.500%10/01/33 MA3489A 152,451.0000 103.364% $157,579.45 Fixed Income FNMA MA3536 4.000%12/01/48 MA3536A 95,609.7500 103.925% $99,362.43 Fixed Income GENERALMTRS FINLCO 4.000%10/06/26 GMF4026 160,000.0000 101.189% $161,902.40 Fixed Income HEWLETT PACKARD CO NT4.375% 9/15/21 HPC4321 150,000.0000 104.060% $156,090.00 Fixed Income HSBC HLDGS, 2.950% 5/25/21 HSBC21C 180,000.0000 101.030% $181,854.00 Fixed Income KEY BANK NA 2.250% 3/16/20 KBN2220 100,000.0000 100.075% $100,075.00 Fixed Income LOS ANGELES REV BIDS 6.5749'o 7/01/45 LAR6545 100,000.0000 159.551% $159,551.00 Fixed Income MACY'S RETAIL HLDGS 4.375% 9/01/23 MRH4323 150,000.0000 103.097% $154,645.50 Fixed Income NAR 2016-C A4 1.380%.1/17/23 NAR1323 150,000.0000 99.501% $149,251.50 Fixed Income NAROT2016-CA3 1.18096 1/15/21 N2A1121 4,932.2200 99.835% $4,924.08 Fixed Income NAROT 2017-B A3 1.750%10/15/21 N2A0121 275,160.4500 99.867% $274,794.49 Fixed Income NORFOLK SOUTHERN COR 4.150% 2/28/48 NSC4148 100,000.0000 112.825% $112,825.00 Fixed Income PNC FINL SVCS GROUP 3.150.9 5/19/27 PFS3127 175,000.0000 105.446% $184,530.50 Fixed Income QUEST DIAGNOSTICS BD 3.500% 3/30/25 QDB3525 150,000.0000 104.416% $156,624.00 Fixed Income SHIREACQINV IRELAND2.875% 9/23/23 SA12823 155,000.0000 101.945% $158,014.75 Fixed Income TAOT 2017-D A3 1.930% 1/18/22 T2A2222 150,000.0000 99.950% $149,925.00 Fixed Income TIME WARNER CABLE NT 7.300% 7/01/38 TWC7338 125,000.0000 126.470% $158,087.50 Fixed Income TOYOTA AUTO RECV OWN 2.520% 5/15/23 TAR2523 95,000.0000 101.086% $96,031.70 Fixed Income UNITEDAIR 14-2A 3.7500A 9/03/26 UA13726 116,040.1200 105.300.0 $122,190.25 Fixed Income UNTD AIR 2013-1 4.300% 8/15/25 UA24325 188,161.9600 108.010% $203,233.73 AHIGHMARK � CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 115 of 168 Holdings-Reporting as of Trade Date Attachment 3 Account:6746055900-PARS/CCCSD 115P-OPEB As of:30-Sep-2019 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income US TREAS BDS 3.625% 8/15/43 UTB3643 750,000.0000 128.973% $967,297.50 Fixed Income US TREAS NTS 2/15/26 UTN1726 385,000.0000 100.039% $385,150.15 Fixed Income US TREAS NTS 1.500% 5/31/20 UTN1520 60,000.0000 99.754% $59,852.40 Fixed Income US TREAS NTS 1.625% 4/30/23 UTN1623 145,000.0000 100.145% $145,210.25 Fixed Income US TREAS NTS 2.000% 2/15/25 UTN2025 560,000.0000 102.106% $571,793.60 Fixed Income US TREAS NTS 2.375% 5/15/27 UTN2327 . 500,000.0000 .105.371916 $526,855.00 Fixed Income US TREAS NTS 2.375%12/31/20 UTN2320 730,000.0000 100.707% $735,161.10 Fixed Income WORLD OMNI AUTO RECV 3.020% 4/15/22 WOA3022 58,942.6700 100.455% $59,210.86 Fixed Income BOSTON PPTYS LTD PAR 2.750%10/01/26 BXP26A 180,000.0000 100.894916 $181,609.20 Fixed Income JPMORGAN CHASE&CO 3.200% 6/15/26 JPM26B 255,000.0000 103.814% $264,725.70 Fixed Income ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 80,000.0000 103.239% $82,591.20 Fixed Income AMERICAN INTLGROUP 3.900% 4/01/26 AIG26 205,000.0000 106.536% $218,398.80 Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 120,000.0000 140.218% $168,261.60 Fixed Income EL PASO ENERGY CORP 7.800% 8/01/31 EP31 115,000.0000 135.722% $156,080.30 Fixed Income FORD MTR CO NTS 7.450% 7/16/31 F31 130,000.0000 114.855% $149,311.50 Fixed Income VERIZON COMMUNICATIO 5.250% 3/16/37 120,000.0000 123.806% $148,567.20 Cash&Cash Equivalents CASH (32,382.1800) $1.0000 ($32,382.18) Cash&Cash Equivalents FIRSTAMERN GOVTOBLIG Fl)CLZ#3676 FGZXX 1,433,667.6800 $1.0000 $1,433,667.68 SUBTOTALS Cash&Cash Equivalents $1,401,285.50 Equities $31,827,135.68 Fixed Income $33,307,736.02 TOTALS $66,536,157.20 r -A HIGHMARK(E CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 116 of 168 Investment Summary k. 01ince ti CCCSD — Pension ' ' Beginning Value $3,359,081.81 Asset Allocation Contributions 4,497,270.65 Withdrawals -28,243.75 Total Assets: $8,515,168 Gain(Loss) 359,991.81 Interest and Dividends 327,067.63 Period Ending: 9-30-2019 Net Accrued Income 26,734.42 3Q19 Return: 1.52% Ending Market Value $8,541,902.57- 1 Year Return: 7.57% Inception-to-Date Return: 5.10% Inception Date:9-1-2017 Cash Equity $265,363 $2,439,108 � Plan target rate of return: 5.82% 3.12% 28.64% Fixed Income - $5,810,697 68.24% Ending Market Value differs from total market value on page 13 due to differences in reporting methodology.The above ending market value includes accruals. A HIGHMARK' PARS: Central Contra Costa Sanitary District 12 CAPITAL. MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 117 of 168 Attachment 3 Asset Allocation — Central Contra Costa Sanitary District Pension As of Third Quarter 2019 Current Asset Allocation Investment Vehicle Equity 28.64% Range:20%.-40% 2,439,108 Large Cap Core 5.45% IVV iShares Core S&P 500 464,497 3.98% VGIAX Vanguard Growth & Income Adm 338,493 Large Cap Value 2.97% IVE iShares S&P 500 Value 252,577 Large Cap-Growth 2.97% IVW iShares S&P 500 Growth 252,942 Mid Cap Core 2.48% IWR iShares Russell Mid-Cap ETF 211,043 Small Cap Value 1.99% UBVFX Undiscovered Managers Behavioral Val R6 169,415 Small Cap Growth 1.90% RSEJX Victory.RS Small Cap Growth R6 161,506 International Core 1.03% VEA Vanguard FTSE Developed Markets ETF 87,336 International Value 1:18% DODFX Dodge&Cox International Stock Fund 100,346 International Growth 1.18% MGRDX MFS® International Growth Fund Class R6 100;891 Emerging Markets 1.48% HHHFX Hartford Schroders Emerging Mkts Eq F 125,965 Real Estate 2.04% VNQ Vanguard Real Estate ETF 174,098 Fixed Income 68.240/6 Range:50%-80% 5,810,697 46.82% Core Fixed Income Portfolio 3,986,460 Short-Term 2.77% VFSUX Vanguard Short-Term Investment-Grade Adm 235,533 Intermediate-Term 9.33% PTTRX PIMCO Total Return Instl Fund 794,465 9.33% PTRQX Prudential Total Return Bond Q 794,239 Cash 3.12% Range:051,.20% 265,363_ 3.12% FGDOC First American Government Oblig Z 265,363 TOTAL 100.00% $8,515,168 �A HIGH CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 118 of 168 Selected Period Performance Attachment 3 PARS/CCCSD 115P - PENSION Account6746055901 Period Ending: 9/30/2019 Year Inception to Date to Date ❑ 3 Months (9 Months) 1 Year (25 Months) Cash Equivalents .52 1.67 2.21 1.77 Lipper V^ ley Market Funds Index Fixed Income ex Funds 2.06 8.67 10.14 4.16 Total Fixed Income 2.13 8.68 10.11 4.12 BBG Barclays US Aggregate Bd Index 10.30 3.96 Total Equities .47 18.53 2.19 8.00 Large Cap Funds 1.76 20.01 4.32 10.92 mar .w vv,awsite Index 4.25 Mid Cap Funds .61 21.70 3.38 9.24 .u..c ,.,­ao Index r. L,._ 3.19 Small Cap Funds -4.12 15.86 -6.42 7.26 .uoou„ cvvv,,,udx -2.40 14.18 -8.89 5.39 International Equities -1.67 12.57 -.01 .68 L_ n,uvx .0, 12.80 -1.34 1.85 MSCI EM Free Index - 5.89 -2.02 -1.55 Real Estate-ETFs/Sctr Fds 7.55 28.21 20.84 10.24 Wilshire REIT Index 27.21 18.39 10.45 Total Managed Portfolio 1.52 11.32 7.57 5.10 10.44 6.7' Performance Inception: 0912017 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. HIGHM' I,RK* CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 119 of 168 Fixed Income Portfolio: Statistics Attachment 3 As of Third Quarter 2019 CCCSD BC Aggregate Bond Pension index Weighted Average Maturity 7.1.5 years 8.05 years Effective Duration 5.43 years 5.85 years Average Coupon 3.16% 3.20% Yield to Maturity 2.38% 2.28% Average Quality Aa3 Aa2 TT -l11GH K� CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 120 of 168 Attachment 3 Fixed Income Portfolio: Sectors As of Third Quarter 2019 45.0% 40.0% — - 35.0% 30.0% —-- 25.0% 20.0% 15.0% -- - -- 10.0% 5.0% 0.0% Cash Treasury Agency Carp Non-Corp MBS CMO ABS CMBS ■CCCSD Pension 0.0% 25.2% 0.0% 41.3% 0.00/0 22.3% 0.0% 11.3% 0.0% Barclays U.S.Aggregate Bond Index 0.0% 40.0% 1.2% 24.8% 4.3% 27.2% 0.0% 0.4% 2.1% HIGHMAR.Ke CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 121 of 168 Fixed Income Portfolio: Effective Duration and Effective Maturity Attachment 3 As of Third Quarter 2019 Effective Duration Effective Maturity 30% 35% 30% — 25% 25% — — 20% — 20% — 15% --- — 15% 10% 10% - 5% - 5% 0% 0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. -10 10+ 0% Yrs. Yrs. 0-1 Yr. 1-3 Yrs. 3-5 Yrs. 5-7Yrs. 7-10 Yrs. 10+Yrs. CCCSD Pension 12.70% 27.75% 19.82% 19.09% 8.14% 13.50% ■CCCSD Pension 11.08% 15.56% 20.37% 22.14% 15.60% 15.24% BC Aggregate Bond Index 2.55% 32.53% 30.23% 11.26% 6.75% 16.69% BC Aggregate Bond Index 0.241/6 22,01% 22.58% 28.78% 10.60% 17.79% TT MI+GHMARK.' CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 122 of 168 Holdings-Reporting as of Trade Date Attachment 3 Account:6746055901-PARS/CCCSD 115P-PENSION As of:30-Sep-2019 Asset Type Asset Name Ticker Shares/Units Price Market Value Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 2,449.2490 $40.9700 $100,345.73 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 8,265.4130 $15.2400 $125,964.89 Equities ISHARES RUSSELL MIDCAP ETF IWR 3,772.0000 $55.9500 $211,043.40 Equities ISHARES S&P 500 GROWTH ETF IVW 1,405.0000 $180.0300 $252,942.15 Equities ISHARES S&P 500 VALUE ETF IVE 2,120.0000 $119.1400 $252,576.80 Equities ISHARES TR CORE S&PS00 ETF IVV 1,556.0000 $298.5200 $464,497.12 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 2,920.1400 $34.5500 $100,890.84 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 2,752.9180 $61.5400 $169,414.57 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 2,126.0000 $41.0800 $87,336.08 Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 4,192.3800 $80.7400 $338,492.76 Equities VANGUARD REAL ESTATE ETF VNQ 1,867.0000 $93.2500 $174,097.75 Equities VICTORY RS SM CAP GROW#279 RSEJX 2,074.5840 $77.8500 $161,506.36 Fixed Income PIMCO TOTAL RETURN INSTL #35 PTTRX 75,591.3060 $10.5100 $794,464.63 Fixed Income PRUDENTIALTOTAL RTRN BD CL Q PTRQX 52,843.5690 $15.0300 $794,238.84 Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 21,930.4820 $10.7400 $235,533.38 Fixed Income ABBOTT LABS SR NT 3.750%11/30/26 ALS3726 27,000.0000 108.944% $29,414.88 Fixed Income CC CCIT 2014-A1 2.8809'o 1/23/23 CC22823A 77,000.0000 101.213% $77,934.01 Fixed Income HAROT2017-4A3 2.0509'011/22/21 H2A2121A 78,791.6600 100.045% $78,827.12 Fixed Income TAOT 2016-D A3 1.230%10/15/20 T2A1220A 2,370.7800 99.927% $2,369.05 Fixed Income UNITED STATES TREAS 2.750% 6/30/23 UST0023B 5,000.0000 103.809% $5,190.45 Fixed Income UNITED STATES TREAS 2.875% 8/15/28 UST2828A 55,000.0000 109.953% $60,474.15 Fixed Income US TREAS NTS 1.500%11/30/19 UTN1519E 100,000.0000 99.908% $99,908.00 Fixed Income US TREAS NTS 1.875% 1/31/22 UTNO022B 20,000.0000 100.555% $20,111.00 Fixed Income US TREAS NTS 2.000% 5/31/24 UTN2024A 90,000.0000 101.996% $91,796.40 Fixed Income WELLS FARGO&CO NEW 3.000%10/23/26 WFC3026A 45,000.0000 102.699% $46,214.55 Fixed Income ABBVIE INC 3.200•/a 11/06/22 AI33222 40,000.0000 102.570% $41,028.00 Fixed Income AMERICAN EXPRESS CO 3.0009/.10/30/24 AEC3024 40,000.0000 103.268% $41,307.20 Fixed Income AMXCA 2017-3 A 1.770%11/15/22 A2A1122 25,000.0000 99.860% $24,965.00 Fixed Income AT&T INC NTS 4.125% 2/17/26 AIN4126 40,000.0000 108.0227o $43,208.80 Fixed Income AVALONBAY CMNTYS INC 3.450% 6/01/25 AC13425 30,000.0000 105.695% $31,708.50 AHIGHMARKe CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 123 of 168 Holdings-Reporting as of Trade Date Attachment 3 Account:6746055901-PARS/CCCSD 115P-PENSION As of:30-5ep-2019 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income BANK OF AMERICA CORP 3.194946 7/23/30 BOA3130 60,000.0000 103.132% $61,879.20 Fixed Income BB&T CORP SR MTN 2.850%10/26/24 BCS2824 35,000.0000 102.630% $35,920.50 Fixed Income BERKSHIRE HATHAWAY 4.250% 1/15/49 BH44249 30,000.0000 118.388% $35,516.40 Fixed Income BK OF MONTREAL MTN 2.350% 9/11/22 BOM2322 30,000.0000 101.099% $30,329.70 Fixed Income BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 10,000:0000 101.749% $10,174.90 Fixed Income BK OF NY MELLON MTN 2.050% 5/03/21 BON2021 20,000.0000 100.075% $20,015.00 Fixed Income BP CAPITAL MARKETS 3.796% 9/21/25 BCM3725 30,000.0000 107.884% $32,365.20 Fixed Income CAPITAL ONE BK USA 3.375% 2/15/23 COB3323 25,000.0000 103.048% $25,762.00 Fixed Income CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 30,000.0000 101.639% $30,491.70 Fixed Income CELGENE CORP NT 3.250% 2/20/23 CC33223 35,000.0000 103.522% $36,232.70 .Fixed Income CHAIT2016-A4A 1.490% 7/15/22 C2A1422 25,000.0000 99.613% $24,903.25 Fixed Income CITIGROUP INC 3.200%10/21/26 CI33226 45,000.0000 103.374% $46,518.30 Fixed Income COMCAST CORP NEW SR 4.150%10/15/28 CCN4128 50,000.0000 112.173% $56,086.50 Fixed Income CONCHO RES INC 4.300% 8/15/28 CRI4328 35,000.0000 107.703% $37,696.05 Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 30,000.0000 113.493% $34,047.90 Fixed Income DOWDUPONT INC 5.319%11/15/38 DI55338 25,000.0000 122.057% $30,514.25 Fixed Income ECOLAB INC SR NT 2.375% 8/10/22 EIS2322 20,000.0000 100.862% $20,172.40 Fixed Income ENBRIDGE INC 2.900% 7/15/22 E122922 30,000.0000 101.888% $30,566.40 Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 27,148.7400 101.2869a $27,497.87 Fixed Income FGLMC#660453 3.000% 1/01/46 G60453F 34,295.4400 102.980% $35,317.44 Fixed Income FGLMC#J30401 3.000% 1/01/30 J30401F 70,884.0400 103.242% $73,182.10 Fixed Income FGLMC G08701 3.000'6 4/01/46 G08701F 27,836.4700 102.480'/0 $28,526.81 Fixed Income FHLMC G08823 3.500916 7/01/48 G08823F 108,182.1900 102.772% $111,181.00 Fixed Income FHLMC G15252 3:000%.12/01/29 G15252F 30,207.4900 103.242% $31,186.82 Fixed Income FHLMC 568006 3.000% 9/01/34 SB8006A 49,436.3700 102.259% $50,553.14 Fixed Income FIFTHTHIRD BANCORP 2.6001Y. 6/15/22 FTB2622 30,000.0000 101.071% $30,321.30 Fixed Income FNMA#AB3678 3.500%10/01/41 AB3678A 39,854.3600 105.474% $42,035.99 Fixed Income FNMAAL93763.00007o8/1/2031 AL9376A 29,582.7500 102.694% $30,379.71 Fixed Income FNMAAS4916 3.000% 5/01/30 AS4916A 40,059.7100 102.697% $41,140.12 Fixed Income FNMA AS7729 3.0000%8/1/2046 AS7729A 38,556.1400 102.615% $39,564.38 -JHIGHMhRK e CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 124 of 168 Holdings-Reporting as of Trade Date Attachment 3 Account:6746055901-PARS/CCCSD 115P-PENSION As of:30-Sep-2019 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FNMA BC14863.0000%8/1/2046 BC1486A 37,488.9000 102.615916 $38,469.23 Fixed Income FNMA BM4913 3.000% 5/01/46 BM4913A 36,533.1500 103.039% $37,643.39 Fixed Income FNMAMA27792.0000%10/1/2026 MA2779A 28,199.1900 99.690% $28,111.77 Fixed Income FNMA MA2895 3.000% 2/01/47 MA2895A 24,416.2500 102.425916 $25,008.34 Fixed Income FNMA MA3120 3.5000%9/1/2047 MA3120A 104,367.2300 103.333% $107,845.79 Fixed Income FNMA MA3313 3.5000A 3/01/33 MA3313A 47,422.6200 103.437% $49,052.54 Fixed Income FNMA MA3489 3.500%10/01/33 MA3489A 28,083.0700 103.364% $29,027.78 Fixed Income FNMA MA3536 4.000%12/01/48 MA3536A 62,354.1700 103.925% $64,801.57 Fixed Income GENERAL MTRS FINL CO 4.000%10/06/26 GMF4026 25,000.0000 101.189910 $25,297.25 Fixed Income HAR 2017-4A-4 2.210% 3/21/24 H222224 25,000.0000 100.252% $25,063.00 Fixed Income HEWLETT PACKARD CO NT4.375% 9/15/21 HPC4321 20,000.0000 104.060% $20,812.00 Fixed Income HSBC HLDGS 2.950% 5/25/21 HSBC21C 20,000.0000 101.030% $20,206.00 Fixed Income KEY BANK NA 2.250% 3/16/20 KBN2220 10,000.0000 100.075% $10,007.50 Fixed Income KIMCO REALTY CORP 3.800% 4/01/27 KRC3827 50,000.0000 106.210% $53,105.00 Fixed Income MACY'S RETAIL HLDGS 4.375% 9/01/23 MRH4323 20,000.0000 103.097% $20,619.40 Fixed Income MAGELLAN MIDSTREAM 5.000% 3/01/26 MM55026 25,000.0000 112.251961 $28,062.75 Fixed Income METLIFE INC BDS 3.600.5 11/13/25 MIB3625 30,000.0000 107.876% $32,362.80 Fixed Income NAR 2016-C A4 1.380% 1/17/23 NAR1323 65,000.0000 99.501% $64,675.65 Fixed Income NORFOLK SOUTHERN COR 4.150% 2/28/48 NSC4148 10,000.0000 112.825% $11,282.50 Fixed Income PNC FINLSVCS GROUP 3.150% 5/19/27 PFS3127 30,000.0000 105.446%a $31,633.80 Fixed Income QUEST DIAGNOSTICS BD 3.500•9A 3/30/25 QDB3525 25,000.0000 104.4169o' $26,104.00 Fixed Income REPUBLIC SVCS NTS 3.375%11/15/27 RSN3327 30,000.0000 106.393% $31,917.90 Fixed Income SHIREACQINV IRELAND2.875% 9/23/23 SAI2823 35,000.0000 101.945% $35,680.75 Fixed Income TAOT 2017-D A3 1.930% 1/18/22 T2A2222 25,000.0000 99.950% $24,987.50 Fixed Income TIME WARNER CABLE NT7.300% 7/01/38 TWC7338 30,000.0000 126.470961 $37,941.00 Fixed Income TOYOTA AUTO RECV OWN 2.520% 5/15/23 TAR2523 55,000.0000 101.086% $55,597.30 Fixed Income UNITEDAIR 4.150% 8/25/31 UA44131 35,000.0000 109.167% $38,208.45 Fixed Income UNTD AIR 2013-1 4.3001/. 8/15/25 UA24325 48,922.1100 108.010% $52,840.77 Fixed Income US TREAS BDS 3.625% 8/15/43 UTB3643 255,000.0000 128.973% $328,881.15 Fixed Income US TREAS NTS 2/15/26 UTN1726 30,000.0000 100.039% $30,011.70 HIGHMARKT, CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 125 of 168 Holdings-Reporting as of Trade Date Attachment 3 Account:6746055901-PARS/CCCSD 115P-PENSION As of:30-Sep-2019 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income US TREAS NTS 1.500.0 5/31/20 UTN1520 40,000.0000 99.754% $39,901.60 Fixed Income US TREAS NTS 1.625% 4/30/23 UTN1623 50,000.0000 100.145% $50,072.50 Fixed Income US TREAS NTS 2.000% 2/15/25 UTN2025 50,000.0000 102.1065vo $51,053.00 Fixed Income US TREAS NTS 2.250%11/15/25 UTN2225 30,000.0000 103.707% $31,112.10 Fixed Income US TREAS NTS 2.37591. 5/15/27 UTN2327 95,000.0000 105.371% $100,102.45 Fixed Income US TREAS NTS 2.375916 12/31/20 UTN2320 95,000.0000 100.707% $95,671.65 Fixed Income WALGREEN CO SR NT 3.100% 9/15/22 WCS3122 30,000.0000 102.410% $30,723.00 Fixed Income WORLD OMNI AUTO RECV 3.020% 4/15/22 WOA3022 72,544.8200 100.455% $72,874.90 Fixed Income BOSTON PPTYS LTD PAR 2.750%10/01/26 BXP26A 40,000..0000 100.894% $40,357.60 Fixed Income JPMORGAN CHASE&CO 3.200% 6/15/26 JPM26B 60,000.0000 103.814% $62,288.40 Fixed Income ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 20,000.0000 103.239% $20,647.80 Fixed Income AMERICAN INTL GROUP 3.900.00 4/01/26 AIG26 40,000.0000 106.5369eo $42,614.40 Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 25,000.0000 140.218% $35,054.50 Fixed Income EL PASO ENERGY CORP 7.800% 8/01/31 EP31 30,000.0000 135.722% $40,716.60 Fixed Income FORD MTR CO NTS 7.450% 7/16/31 F31 25,000.0000 114.855% $28,713.75 Fixed Income VERIZON COMMUNICATIO 5.250% 3/16/37 20,000.0000 123.806% $24,761.20 Cash&Cash Equivalents FIRST AMERN GOVT OBLIG FD CL Z#3676 FGZXX 265,362.6800 $1.0000 $265,362.68- SUBTOTALS 265,362.68SUBTOTALS Cash&Cash Equivalents $265,362.68 Equities $2,439,108.45 Fixed Income $5,810,697.02 TOTALS $8,515,168.15 HIGH T. CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 126 of 168 Attachment 3 CENTRAL CONTRA COSTA SANITARY DISTRICT For Period Ending September 30, 2019 LARGE CAP EQUITY FUNDS 3-Month YTD 1-Year 3-Year 5-Year 10-Year Fund Name Inception Retum Rank Return Rank Return Rank Retum Rank Return Rank Return Rank iShares Core S&P 500 ETF (4/17) 1.69 41 20.53 31 4.22 33 13.36 19 10.79 15 13.17 10 iShares S&P 500 Value ETF (4/17) 2.79 18 19.87 13 5.38 25 10.43 31 8.31 28 11.37 32 Vanguard Growth&Income Adm (12116) 1.52 51 19.28 58 2.32 63 12.67 40 10.52 21 13.24 8 iShares S&P 500 Growth ETF (4/17) 0.69 38 20.91 50 3.11 38 15.53 39 12.63 29 14.51 20 S&P 500 TR USD 1.70 - 20.55 - 4.25 - 13.39 - 10.84 - 13.24 - '-MID CAP EQUITY FUNDS -J- iShares Russell Mid-Cap ETF (3/16) 0.43 44 21.75 17 3.08 24 10.54 24 8.94 18 12.89 11 Russell Mid Cap TR USD 0.48 - 21.93 - 3.19 - 10.69 - 9.10 - 13.07 - SMALL CAP EQUITY Undiscovered Managers Behavioral Val R6 (9/16) -1.31 67 14.96 28 -8.51 45 6.20 27 7.66 14 12.72 1 Russell 2000 Value TR USD -0.57 - 12.82 - -8.24 - 6.54 -- 7.17 - 10.06 - Victory RS Small Cap Growth R6 (2/19) -7.29 84 21.96 23 -0.42 45 16.10 15 11.94 19 14.72 9 Dodge&Cox International Stock -1.66 52 11.00 19 -2.75 26 5.26 28 0.64 69 4.92 14 Vanguard FTSE Developed Markets ETF (9/18) -1.00 37 12.67 37 -2.03 50 6.29 31 3.62 23 5.09 28 MFS International Growth R6 -1.17 48 16.76 52 3.06 26 10.07 11 7.35 12 7.38 19 MSCI EAFE NR USD 4.07 - 12.80 - 4.34 - 6.48 - 3.27 - 4.90 - Hartford Schroders Emerging Mkts Eq F -2.68 28 9.88 31 0.23 45 7.55 17 3.81 14 3.95 34 (MSCI EM Free Index -4.25 - 5.89 - -2.02 - 5.97 - 2.33 - 3.37 - Data Source.Mbmingstar, SEI Investments Retums 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. HIGHl1r' ARKO CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 127 of 168 Attachment 3 CENTRAL CONTRA COSTA SANITARY DISTRICT For Period Ending September 30, 2019 REIT EQUITY FUNDS 3-Month YTD 1-Year 3-Year 5-Year 10-Year Fund Name Inception _Retum Rank Return Rank Return Rank Return Rank Return Rank Return Rank_ Vanguard Real Estate ETF (4/17) 7.40 42 28.13 35 19.85 29 7.06 52 9.93 39 12.88 36 Wilshire REIT Index 7.88 0 27.21 0 18.39 0 7.21 0 10.17 0 13.06 0 PIMCO Total Return Instl 2.36 20 S.5.8 62 10.08 31 3.56 24 3.58 33 4.32 53 PGIM Total Return Bond R6 (5/16) 2.68 2 10.74 3 12.25 1 4.43 5 4.66 3 5.77 6 Vanguard Short-Term Investment-Grade Adm 0.99 23 5.18 16 5.88 15 2.46 22 2.48 11 2.83 19 BBgBarc US Agg Bond TR USD 2.27 - 8.52 - 10.30 - 2.92 - 3.38 - 3.75 - Data Source:Momingstar, 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. Ir IF IGH K's CAPITAL MANAGEMENT October 22, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 128 of 168