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HomeMy WebLinkAbout06.a. Review and provide input on Highmark Capital Management Government Accounting Standards Board (GASB) 45 Other Post-Employment Benefits (OPEB) and Pension Prefunding Sub-trust Reports for the First Quarter of calendar year 2020 Page 1 of 29 Item 6.a. Av CENTRAL SAN May 18, 2020 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 PREFUNDING SUB-TRUST REPORTS FOR THE FIRST QUARTER OF CALENDAR YEAR 2020 Attached for review are the most recent Highmark overview and GASB 45 OPEB Sub-Trust and Pension Pre-funding Sub-Trust Reports. An overview slide showing the entities involved in administering the OPEB and Pension Prefunding Trusts for Central San is also attached. As the reports are as of March 31, 2020, the investment results reflect the significant stock market downturn that commenced in March, with a low-point on March 23. As of May, there has been a significant recovery of equity prices. The next quarterly report, for Q2 2020, will reflect these improved results should this partial recovery continue. 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 1 st Quarter 2020 3. PARS Investment Report 1 st Quarter 2020 May 18, 2020 Special FINANCE Committee Meeting Agenda Packet- Page 63 of 448 Attachment 1 PARS 115 TRUST TEAM Trust Administrator & Consultant rLIBLIC AGENCY 5 PARS Recordkeeping Processes contributions/disbursements RETREMENE Sub-trust accounting • Hands-on, dedicated support teams TRUSTED SOLUTIONS.LASTING RESULTS. . Monitors plan compliance • Coordinates all agency services 36 1 ,500+ 1 ,000+ 500 K+ $4.2B Years of Experience Plans under Public Agency Plan Participants Assets under (1984-2020) Administration Clients Administration Investment Manager CVbank. AHIGHMARK- CAPITAL MANAGEMENT • 5th largest commercial bank and one of the • Investment sub-advisor to trustee U.S. Bank nation's largest trustees for Section 115 trusts. • Investment policy assistance • Safeguard plan assets, • Uses open architecture • Oversight protection as plan fiduciary • Active and passive platform options • Custodian of assets • Customized portfolios (with minimum asset level) 157 $5.OT 101 S17.4B Years of Experience Assets under Years of Experience Assets under (1863-2020) Administration (1919-2020) Management PUD UC RETIREMENT SERVICES PARS TRUSTEDWN?SleS'MU!§�ecial FINANCE Committee Meeting Agenda Packet- Page 64 of 448 Page 3 of 29 Attachment 2 HIGHMARKO CAPITAL MANAGEMENT April 14, 2020 Phil Leiber Director of Finance and Administration Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553-4392 RE: 1 Q Quarter 2020 OPEB/Pension Report Dear Mr. Leiber, By all accounts, the global economy was hitting its stride entering 2020. In the U.S, dovish monetary policy led to three rate cuts and provided the economy room to extend its historically long run. German manufacturing data, a proxy for global trade, was inflecting upward; and U.S. employment was as strong as it had been in decades with no sign of slowing down. Investors viewed a trade conflict ceasefire as the last remaining obstacle to be cleared before continuing to add risk. Equity markets seemingly anticipated a continuation of 2019's strong returns as buying activity continued during the first seven weeks of 2020. Little attention was paid to a growing concern in China about a mysterious and rapidly spreading illness. Even when China placed large portions of its population under quarantine orders in late January, global equity markets dismissed the action as a blip on the radar screen. But by the end of February, "coronavirus," was becoming a household term. The disease it causes, COVID-19, was formally declared a global pandemic by the World Health Organization on March 131H The economic and market ramifications of widespread government-enacted social distancing policies intended to prevent contagion were wide and deep. As soon as it became apparent that the problem would not be isolated to China, investors recalibrated to a new paradigm that included a temporary shutdown of major segments of the global economy. Investors raced to exit any asset deemed "risky" in a search for safety. The demand for"risk haven" U.S. Treasury bonds drove the 10-year Note's yield down to 0.33% from a yield of 1.91% at the beginning of the year. Such an unprecedented situation led to a market sell-off of epic proportions for financial markets. After hitting an all-time high on February 19th, the S&P 500 index sold off into bear market territory at the fastest speed on record and market volatility as measured by the CBOE Volatility Index, (VIX), soared to levels that exceeded the prior highs set during the Great Financial Crisis in 2008. As the quarter ended, a relief rally on news that monetary and fiscal responses were being readied pared losses, but not enough to save the S&P 500's quarterly return from being the worst since the 4th quarter of 2008 when the index declined by 22%. As companies shuttered their doors to prevent contagion, mass layoffs began. Unemployment claims soared to 3.3 million for the week ending March 21, a level four May 18, 2020 Special FINANCE Committee Meeting Agenda Packet- Page 65 of 448 Page 4 of 29 Attachment 2 times higher than the prior record set in 19821. For the last two weeks of the quarter combined, initial unemployment claims totaled nearly 10 million—far surpassing anything seen during the Great Financial Crisis and the highest level of seasonally adjusted claims in the history of the series.2 The Department of Labor's non-farm payroll report dropped by 701,000 in March, driving the unemployment rate up to 4.4% from 3.5% in February. It was the first decline in payrolls since September 2010. The survey, which is conducted mid-month, reported that two-thirds of the drop came from the hospitality industry. In one indication of how low oil prices are combining with virus-impacted social distancing measures, the Federal Reserve of Dallas's gauge of March manufacturing activity in Texas fell dramatically to negative 70; the lowest reading since the 2004 index inception. Monetary and Fiscal Responses As markets tumbled and state governments put social distancing measures in place, the Federal Reserve (Fed) and Congress responded by implementing a variety of measures intended to preserve liquidity and confidence in the financial sector and to minimize the impact on Americans whose livelihoods were threatened by the virus. The Fed's decision to cut short term rates and restart quantitative easing was just the beginning. The Fed stated it is "committed to using its full range of tools to support households, businesses, and the U.S. economy overall in this challenging time." New emergency stabilization monetary and fiscal measures included: • A Fed Funds Rate cut by 150 basis points to 0-0.25% before its March 18th meeting. • Expanding the scope of securities, the Fed will purchase under a resumption of Quantitative Easing to include agency commercial and residential mortgage backed securities. • Opening several lending facilities to support the flow of credit in the corporate, municipal and asset backed lending markets. • The announcement of a "Main Street Business Lending Program" to support lending to eligible small- and medium-sized businesses, complementing efforts by the Small Business Administration. • A $2 trillion fiscal stimulus package, also known as the "Coronavirus Aid, Relief, and Economic Security" or"CARES Act," which provides aid for individuals and businesses impacted by the federal and state mandated social distancing measures. Looking Forward Without a doubt, the coronavirus has pushed the global economy into a recession of historic proportions and markets are reacting unfavorably. The path forward is highly uncertain and will likely be beset by negative news headlines for the foreseeable future. '(Evercore ISI) Z Source: Department of Labor May 18, 2020 Special FINANCE Committee Meeting Agenda Packet- Page 66 of 448 Page 5 of 29 Attachment 2 Virus fears and quarantine measures are creating a massive global demand shock and there will be corresponding second-hand effects amplified by global trade and the global nature of the financial system. Discretionary spending, tourism, exports, and manufacturing will come under severe pressure Given the unprecedented collapse in demand associated with shutting down large parts of the economy, the only question is how deep the recession will get and how long it will last. These will be difficult questions to answer without data indicating the full scope of the economic fallout of social distancing. A sudden onset of extreme economic constraints makes traditional analysis of data trends virtually useless. With this in mind, we expect overall financial market volatility to persist as investors search for a vector on the trajectory of the economy. However, global growth could stage a decent recovery later in the year, led by pent-up demand and forceful policy stimulus measures. The recovery will likely be mild, staggered, and will take time to heal back to its prior potential. Markets tend to rebound months in advance of an actual recovery in the economy, anticipating better times ahead, before it shows up in the economic data. Unlike deep and rapid downturns from the past, such as the 1930's Great Depression and 2008 Global Financial Crises, this crisis has an endgame in the not too distant future. Social distancing measures, and warmer spring temperatures may cause the virus to have a harder time spreading. The unprecedented collaboration from the healthcare industry, governments, universities, and nonprofits all banding together to deliver effective solutions in the areas of containment, treatment and ultimately vaccines to stem this crisis is a heartening development. It's human nature to focus on the recent cascade of bad developments, but we also need to have faith in a brighter future. Our investment process includes looking at asset classes through the lenses of valuations, economic fundamentals and technical indicators, but also including the identification of specific catalysts related to the underlying factors driving markets that would suggest the worst is behind us. For example, a peak in infection growth rates or a medical breakthrough leading to an effective therapy or vaccine could turn the tide of sentiment. Policy responses will also be a keen area of focus and the passage of a significant fiscal stimulus package to complement the uber-dovish monetary policy may also soothe concerns about dire economic scenarios playing out. A word on your investment objective In my fourth quarter 2018 report to the District, I offered the thoughts below, regarding risk/reward positioning for a Pension Plan that has a long-term time horizon. I would like to repeat these thoughts. When markets decline like they have over the last two-months, it can be painful. Market declines like the ones we have seen in the first 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 May 18, 2020 Special FINANCE Committee Meeting Agenda Packet- Page 67 of 448 Page 6 of 29 Attachment 2 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 modest 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's liabilities are long-term in nature, and as such can allow the District to maintain the asset allocation policy established within the Moderate and the Moderately Conservative Objective's parameters. Plan Performance The Central Contra Costa Sanitary District OPEB Plan returned -11.83% gross of investment fees for the first quarter. The return lagged the District's OPEB Plan Benchmark target of-10.90%. The OPEB Plan's equity segment generated a -23.6% return in the quarter. There were no `safe-havens' within the equity markets in the first quarter. Small caps, as measured by the Russell 2000 Index was the worst performing sector, declining -30.6%. Large cap, as measured by the S&P500 Index, was the leading equity sector, declining -19.6%. Everything else was somewhere in-between. The Plan's equity segment returns were generally in-line with the benchmark targets. While the equities declined -23.6%, the largest area of disappointment in the quarter, relative to the underlying benchmark target, was found in the fixed income segment, where the portfolio's managers returned a combined 0.6%. All three intermediate-term fixed income managers underperformed the Bloomberg Barclays Aggregate Index quarterly return of 3.1%. The internally managed fixed income strategy (+1.6%) and the Pimco Total Return Fund (+2.2%) were the only strategies to post positive returns. For the internally managed strategy, the portfolio's overweight to credit hurt returns over the quarter, with exposure to oil related bonds and automotive issues (Ford and General Motors) negatively impacting returns. The third manager, PGIM Total Return Fund (- 2.8%), was impacted by their exposure to high yield, collateralized mortgage backed bonds, and emerging market bonds. Credit spread product widened considerably in the quarter due in part to the collapse in oil prices, as well as the effects of the global pandemic. We ended the quarter at a target asset allocation of 47.5% stocks, 48.5% bonds and 4% cash. This represents a 2.5% reduction in stocks versus the previous quarter-end target position. As the stock market sold off from the middle of February to quarter- end, we rebalanced the portfolio, but we rebalanced to a lower target equity position. The 47.5% equity position represents a -2.5% underweight relative to our policy benchmark targets The Central Contra Costa Sanitary District Pension Plan returned -6.60% in the quarter, gross of investment fees, which lagged the District's Plan benchmark target of-5.74%. The target asset allocation for the pension plan also maintained an underweight allocation to stocks as of the end of the quarter; targeting an allocation of 27.5% stocks, and a fixed income/cash allocation of 72.5%. Andrew Brown May 18, 2020 Special FINANCE Committee Meeting Agenda Packet- Page 68 of 448 Attachment 3 PARS: Central Contra Costa Sanitary District OPEB and Pension Plan First Quarter 2020 Presented by Andrew Brown, CFA JHIGHMARKO CAPITAL MANAGEMENT Attachment 3 CCCSD — OPEB Investment Summary Since Inception Beginning Value 566,683.26 Asset Allocation Contributions 106,076,559.82 Withdrawals -64,392,924.17 Total Assets: $61,787,271 Gain(Loss) 4,745,604.76 Interest and Dividends 14,791,346.95 Period Ending: 3-31-2020 Net Accrued Income 130.060.68 1Q20 Return: -11 .83% Ending Market Value $61,917,331.30* 1 Year Return: -3.66% Inception-to-Date Return: 7.95% Cash Inception Date:4-1-2009 $2,430,881 3.93% Plan target rate of return: 6.25% Equity $29,329,414 47.47% Fixed Income $30,026,976 48.60% * Ending Market Value differs from total market value on page 3 due to differences in reporting methodology. The above ending market value includes accruals. JHIGHMARKO CAPITAL MANAGEMENT Attachment 3 Asset Allocation - Central Contra Costa Sanitary District OPEB As of First Quarter 2020 Current Asset Allocation Investment Vehicle Equity 47.47% Range:40%-60% 29,329,414 Large Cap Core 10.26% IVV iShares Core S&P 500 ETF 6,338,035 7.21% VGIAX Vanguard Growth & Income Adm 4,453,601 Large Cap Value 5.42% IVE iShares S&P 500 Value ETF 3,349,596 Large Cap Growth 4.33% IVW iShares S&P 500 Growth ETF 2,678,266 Mid Cap Core 3.90% IWR iShares Russell Mid-Cap ETF 2,407,116 Small Cap Value 2.96% UBVFX Undiscovered Managers Behavioral Val R6 1,828,217 Small Cap Growth 3.09% RSEJX Victory RS Small Cap Growth R6 1,909,604 International Core 2.59% VEA Vanguard FTSE Developed Markets ETF 1,602,821 International Value 1.54% DODFX Dodge & Cox International Stock Fund 954,221 International Growth 1.59% MGRDX MFSO International Growth Fund Class R6 980,144 Emerging Markets 2.53% HHHFX Hartford Schroders Emerging Mkts Eq F 1,561,900 Real Estate 2.05% VNQ Vanguard Real Estate ETF 1,265,892 Fixed Income 48.60% Range:40%-60% 30,026,976 28.37% Core Fixed Income Portfolio 17,532,005 Short-Term 3.00% VFSUX Vanguard Short-Term Investment-Grade Adm 1,854,595 Intermediate-Term 8.52% PTTRX PIMCO Total Return Instl Fund 5,262,501 8.70% PTRQX Prudential Total Return Bond Q 5,377,874 Cash 3.93% Range: 0%-20% 2,430,881 3.93% FGZXX First American Government Oblig Z 2,430,881 TOTAL 100.00% $61,787,271 JHIGHMARKO CAPITAL MANAGEMENT Attachment 3 Selected Period Performance CCCSD - OPEB Period Ending: 3/31/2020 Year Inception to Date to Date (3 Months) 1 Year 3 Years 5 Years 10 Years 04/01/2009 Cash Equivalents .30 1.81 1.57 1.02 .53 .52 Lipper Money Market Funds Index .32 1.74 1.49 .47 .44 Fixed Income ex Funds 1.29 7.22 Total Fixed Income .58 6.32 4.13 3.05 3.76 4.60 BBG Barclays US Aggregate Bd Index 3.15 8.93 4.82 3.36 3.88 4.23 Total Equities -23.56 -13.37 1.45 3.30 7.61 11.12 Large Cap Funds -20.25 -8.06 4.25 5.88 9.44 12.56 S&P 500 Composite Index -19.60 -6.98 6.73 10.53 13.62 Mid Cap Funds -27.14 -18.55 -1.27 1.04 7.43 Russell Midcap Index -27.07 -18.31 -.81 1.85 8.77 13.13 Small Cap Funds -32.50 -25.46 -3.33 1.02 8.76 12.83 Russell 2000 Index -30.61 -23.99 -4.64 -.25 6.90 11.07 International Equities -23.84 -15.09 -1.67 -.46 1.78 6.34 MSCI EAFE Index -22.83 -14.38 -1.82 -.62 2.71 6.59 MSCI EM Free Index -23.60 -17.69 -1.62 -.37 .68 6.20 Real Estate - ETFs / Sctr Fds -23.99 -16.59 Wilshire REIT Index -25.63 -19.38 -2.49 -.19 7.67 14.59 Total Managed Portfolio -11.83 -3.66 3.13 3.43 5.81 7.95 CCCSD OPER -10.90 -2.88 3.11 3.55 5.95 8.01 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%Cltigroup 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. J HIGHMARKO CAPITAL MANAGEMENT Attachment 3 Fixed Income Portfolio: Statistics As of First Quarter 2020 CCCSD BC Aggregate Bond OPEB Index Weighted Arerage Maturity 7.52 years 7.92 years Effective Duration 5.71 years 5.86 years Average Coupon 3.19% 3.11% Yield to Maturity 2.20% 1.63% Average Quality Aa3 Aa2 JHIGHMARKO CAPITAL MANAGEMENT Source: BondEdge Attachment 3 Fixed Income Portfolio: Sectors As of First Quarter 2020 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 CM❑ ABS CMBS ■CCCS❑❑PEB 0.0% 21.7% 0.0% 41.1% 0.9% 27.4% 0.0% 9.0% 0.0% ■Barclays U.S.Aggregate Bond Index 0.0% 42.2% 1.3% 23.1% 4.3% 26.6% 0.0% 0.4% 2.1% JHIGHMARKO CAPITAL MANAGEMENT Source: BondEdge Attachment 3 Fixed Income Portfolio: Effective Duration and Effective Maturity As of First Quarter 2020 Effective Duration Effective Maturity 30% 40°1a 35°/a 25 30°1/a 2'0' 25°1/a 20% �•,: 15°/u 10% 10°/a 5010 5% o��a 0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7 10 10+ 001 Yrs. Yrs. 0-1 Yr. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 Yrs. 10+Yrs. ■CCCSD OP EB 11.86% 28.10% 14.22% 19.77% 11.48% 14.57% ■CCCSD OPEB 6.18% 15.68% 21.66% 19.85% 20.35% 16.28% BC Aggregate Bond Index 5.8111/o 36.66% 22.58% 10.62°14 7.07% 17.27% BC Aggregate Bond Index 0.51% 26.07% 25.48% 20.58% 9.00% 18.36% JHIGHMARKO CAPITAL MANAGEMENT Source: BondEdge Attachment 3 Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:31-Mar-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Cash&Cash Equivalents CASH (45,608.3200) $1.0000 ($45,608.32) Cash&Cash Equivalents FIRST AMERN GOVT OBLIG I'D CLZ#3676 FGZXX 2,476,489.0000 $1.0000 $2,476,489.00 Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 31,492.4470 $30.3000 $954,221.14 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 122,694.4540 $12.7300 $1,561,900.40 Equities ISHARES RUSSELL MIDCAP ETF IWR 55,759.0000 $43.1700 $2,407,116.03 Equities ISHARES S&P 500 GROWTH ETF IVW 16,227.0000 $165.0500 $2,678,266.35 Equities ISHARES S&P 500 VALUE ETF IVE 34,801.0000 $96.2500 $3,349,596.25 Equities ISHARES TR CORE S&P500 ETF IVV 24,528.0000 $258.4000 $6,338,035.20 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 32,476.6170 $30.1800 $980,144.30 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 49,185.2900 $37.1700 $1,828,217.23 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 48,075.0000 $33.3400 $1,602,820.50 Equities VANGUARD GRO&INC ADMIRAL SH IRS#593 VGIAX 65,930.4350 $67.5500 $4,453,600.88 Equities VANGUARD REAL ESTATE ETF VNQ 18,123.0000 $69.8500 $1,265,891.55 Equities VICTORY RS SM CAP GROW#279 RSEJX 30,939.7900 $61.7200 $1,909,603.84 Fixed Income PIMCO TOTAL RETURN INSTIL #35 PTTRX 501,668.3930 $10.4900 $5,262,501.44 Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 386,897.4440 $13.9000 $5,377,874.47 Fixed Income VNGRD STTERM INVMTGRADE ADM #539 VFSUX 176,628.1090 $10.5000 $1,854,595.14 Fixed Income HAROT 2017-3 A3 1.790% 9/20/21 H2A1721B 55,066.4500 99.898% $55,010.28 Fixed Income HA ROT 2017-4 A3 2.050% 11/22/21 H2A2121A 142,276.1100 99.983% $142,251.92 Fixed Income WELLS FARGO&CO NEW 3.000% 10/23/26 WFC3026A 300,000.0000 102.214% $306,642.00 Fixed Income AMERICAN EXPRESS CO 3.000% 10/30/24 AEC3024 185,000.0000 102.291% $189,238.35 Fixed Income AMXCA 2017-3 A 1.770%11/15/22 A2A1122 200,000.0000 99.958% $199,916.00 Fixed Income AMXCA 2017-6A 2.040% 5/15/23 \2A2023 100,000.0000 100.130% $100,130.00 Fixed Income ANHEUSER-BUSCH INBEV 4.900% 1/23/31 A144919 65,000.0000 110.829% $72,038.85 Fixed Income AT&T INC NTS 4.125% 2/17/26 AIN4126 220,000.0000 105.947% $233,083.40 Fixed Income BANK OF AMERICA CORP 3.194% 7/23/30 BOA3130 280,000.0000 102.004% $285,611.20 Fixed Income BB&T CORP SR MTN 2.850% 10/26/24 BCS2824 210,000.0000 101.139% $212,391.90 Fixed Income BERKSHIRE HATHAWAY 4.250% 1/15/49 BH44249 175,000.0000 122.974% $215,204.50 Fixed Income BK OF MONTREAL MTN 2.350% 9/11/22 BOM2322 205,000.0000 101.188% $207,435.40 Fixed Income BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 70,000.0000 101.592% $71,114.40 JHIGHMARK@ CAPITAL MANAGEMENT Attachment 3 Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:31-Mar-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income BK OF NY MELLON MTN 2.050% 5/03/21 BON2021 180,000.0000 100.464% $180,835.20 Fixed Income BP CAPITAL MARKETS 3.796% 9/21/25 BCM3725 170,000.0000 102.327% $173,955.90 Fixed Income CAPITAL ONE CC TR 0.0001% 8/15/24 C000024 250,000.0000 100.964% $252,410.00 Fixed Income CAPITAL ONE NTS 3.800% 1/31/28 CON3828 250,000.0000 97.961% $244,902.50 Fixed Income CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 170,000.0000 101.651% $172,806.70 Fixed Income CITIGROUP INC 3.200%10/21/26 C133226 220,000.0000 103.550% $227,810.00 Fixed Income COMCAST CORP NEW SR 4.150% 10/15/28 CCN4128 250,000.0000 112.281% $280,702.50 Fixed Income CONCHO RES INC 4.300% 8/15/28 CR14328 175,000.0000 86.356% $151,123.00 Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 155,000.0000 114.253% $177,092.15 Fixed Income DISCOVERY COMM 3.950% 3/20/28 DC33928 200,000.0000 98.032% $196,064.00 Fixed Income DOWDUPONT INC 5.319% 11/15/38 D155338 160,000.0000 112.322% $179,715.20 Fixed Income ECOLAB INC SR NT 2.375% 8/10/22 EIS2322 80,000.0000 99.782% $79,825.60 Fixed Income ENBRIDGE INC SR GLBL3.125% 11/15/29 EIS3129 220,000.0000 90.952% $200,094.40 Fixed Income ENTERPRISE PROD OPER 4.900% 5/15/46 EPO4946 150,000.0000 95.731% $143,596.50 Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 146,100.6500 104.109% $152,103.93 Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 187,799.1500 105.788% $198,668.96 Fixed Income FGLMC#130401 3.000% 1/01/30 J30401F 142,817.6800 105.543% $150,734.06 Fixed Income FGLMC#Q13204 3.000%11/01/42 Q13204F 124,243.5800 105.911% $131,587.62 Fixed Income FHLMC G08823 3.500% 7/01/48 G08823F 358,118.0900 105.735% $378,656.16 Fixed Income FHLMC G14702 2.5000%3/1/2023 G14702F 82,398.6700 103.711% $85,456.48 Fixed Income FHLMC G15252 3.000% 12/01/29 G15252F 118,106.6700 105.430% $124,519.86 Fixed Income FHLMC Q38373 3.500% 1/01/46 Q38373F 125,205.1500 106.530% $133,381.05 Fixed Income FHLMC SB8006 3.000% 9/01/34 SB8006A 268,822.4600 104.652% $281,328.08 Fixed Income FHLMC V60586 3.0000%8/1/2029 V60586F 142,206.5400 105.340% $149,800.37 Fixed Income FIFTH THIRD BANCORP 2.600% 6/15/22 FTB2622 175,000.0000 98.838% $172,966.50 Fixed Income FNMA#MA3238 3.500% 11/01/47 MA3238A 152,833.3800 105.573% $161,350.78 Fixed Income F N MA A L8174 3.5000%2/1/2046 AL8174A 277,841.6800 106.713% $296,493.19 Fixed Income F N MA A L8924 3.0000%12/1/2030 AL8924A 213,247.5300 105.093% $224,108.23 Fixed Income FN MA AL9376 3.0000%8/1/2031 AL9376A 113,516.8600 105.281% $119,511.69 Fixed Income FNMA AL9861 3.000% 8/01/30 AL9861A 326,771.4200 105.037% $343,230.90 JHIGHMARK@ CAPITAL MANAGEMENT Attachment 3 Holdings-Reporting as of Trade Date Account:6746055900-PARS/CCCSD 115P-OPEB As of:31-Mar-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FN MAAS4916 3.000% 5/01/30 AS4916A 241,243.6800 105.060% $253,450.61 Fixed Income FNMA AS7729 3.0000%8/1/2046 AS7729A 208,660.1600 105.625% $220,397.29 Fixed Income FNMA AT0293 3.0000%3/1/2043 AT0293A 120,465.3300 105.890% $127,560.74 Fixed Income FNMA BC1486 3.0000%8/1/2046 BC1486A 182,886.1500 105.602% $193,131.43 Fixed Income FNMA BM4913 3.000% 5/01/46 BM4913A 119,792.8400 105.691% $126,610.25 Fixed Income FNMA MA 2779 2.0000% 10/1/2026 MA2779A 114,868.5200 103.093% $118,421.40 Fixed Income FNMA MA 2895 3.000% 2/01/47 MA2895A 151,941.4800 104.927% $159,427.64 Fixed Income FNMA MA3210 3.500% 11/01/47 MA3210A 148,850.1900 105.595% $157,178.36 Fixed Income FNMA MA 3313 3.500% 3/01/33 MA3313A 94,072.1100 105.352% $99,106.85 Fixed Income FNMA MA3332 3.500% 3/01/48 MA3332A 212,762.1700 105.533% $224,534.30 Fixed Income FNMA MA 3489 3.500% 10/01/33 MA3489A 118,893.2800 105.246% $125,130.42 Fixed Income FNMA MA3536 4.000% 12/01/48 MA3536A 71,857.6900 106.477% $76,511.91 Fixed Income FORD CR AUTO OWN TR 0.000% 3/15/24 FCA0024 150,000.0000 99.784% $149,676.00 Fixed Income GENERAL MTRS FINLCO 4.000% 10/06/26 GMF4026 160,000.0000 84.970% $135,952.00 Fixed Income GMALT 2018-3 A4 3.300% 7/20/22 G2A3322 200,000.0000 100.460% $200,920.00 Fixed Income GOLDMAN SACHS BIDS 3.691% 6/05/28 GSB3628 200,000.0000 102.676% $205,352.00 Fixed Income HEWLETT PACKARD CO NT4.375% 9/15/21 HPC4321 150,000.0000 101.704% $152,556.00 Fixed Income LOS ANGELES REV BIDS 6.574% 7/01/45 LAR6545 100,000.0000 153.659% $153,659.00 Fixed Income NAR 2016-C A4 1.380% 1/17/23 NAR1323 123,069.5500 99.533% $122,494.82 Fixed Income NAROT 2017-B A3 1.750% 10/15/21 N2A0121 147,062.4900 100.065% $147,158.08 Fixed Income NORFOLK SOUTHERN COR 4.150% 2/28/48 NSC4148 100,000.0000 105.515% $105,515.00 Fixed Income SHIRE ACQINV IRELAND2.875% 9/23/23 SAI2823 155,000.0000 100.727% $156,126.85 Fixed Income TAOT 2017-D A3 1.930% 1/18/22 T2A2222 90,144.8900 99.965% $90,113.34 Fixed Income TIME WARNER CABLE NT 7.300% 7/01/38 TWC7338 125,000.0000 122.726% $153,407.50 Fixed Income TOYOTA AUTO RECV OWN 2.520% 5/15/23 TAR2523 95,000.0000 101.500% $96,425.00 Fixed Income UNITEDAIRI4-2A 3.750% 9/03/26 UA13726 111,872.9000 100.691% $112,645.94 Fixed Income UNTDAIR 2013-1 4.300% 8/15/25 UA24325 181,931.7400 99.978% $181,891.72 Fixed Income US TREAS BIDS 3.625% 8/15/43 UTB3643 750,000.0000 147.633% $1,107,247.50 Fixed Income US TREAS NTS 1.625% 4/30/23 UTN1623 670,000.0000 104.082% $697,349.40 Fixed Income US TREAS NTS 2.375% 5/15/27 UTN2327 850,000.0000 112.805% $958,842.50 JHIGHMARK@ CAPITAL MANAGEMENT Attachment 3 Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:31-Mar-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income VENTAS RLTY LTD 3.500% 4/15/24 VRL3524 95,000.0000 97.667% $92,783.65 Fixed Income WORLD OMNI AUTO RECV 3.020% 4/15/22 WOA3022 30,388.8300 100.209% $30,452.34 Fixed Income BOSTON PPTYS LTD PAR 2.750% 10/01/26 BXP26A 180,000.0000 94.304% $169,747.20 Fixed Income JPMORGAN CHASE&CO 3.200% 6/15/26 JPM26B 305,000.0000 103.862% $316,779.10 Fixed Income ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 80,000.0000 102.634% $82,107.20 Fixed Income AMERICAN INTL GROUP 3.900% 4/01/26 AIG26 205,000.0000 102.993% $211,135.65 Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 120,000.0000 103.936% $124,723.20 Fixed Income EL PASO ENERGY CORP 7.800% 8/01/31 EP31 115,000.0000 113.712% $130,768.80 Fixed Income FORD MTR CO NTS 7.450% 7/16/31 F31 130,000.0000 72.000% $93,600.00 Fixed Income BRISTOL MYERS SQUIBB 3.250% 2/20/23 175,000.0000 105.006% $183,760.50 Fixed Income US TREAS NTS 1.625% 8/15/29 960,000.0000 108.535% $1,041,936.00 Fixed Income VERIZON COMMUNICATIO 5.250% 3/16/37 150,000.0000 127.012% $190,518.00 $17,532,005.20 SUBTOTALS Cash&Cash Equivalents $2,430,880.68 Equities $29,329,413.67 Fixed Income $30,026,976.25 TOTALS $61,787,270.60 JHIGHMARK@ CAPITAL MANAGEMENT Attachment 3 CCCSD — Pension Investment Summary Since Inception Beginning Value $3,359,081.81 Asset Allocation Contributions 5,502,440.02 Withdrawals -73,884.84 Total Assets: $9,086,148 Gain(Loss) -225,799.49 Interest and Dividends 524,310.84 Period Ending: 3-31-2020 Net Accrued Income 27,834.89 1 Q20 Return: -6.60% Ending Market Value $9,113,983.23* 1 Year Return: .55% Inception-to-Date Return: 2.44% Cash Equity Inception Date:9-1-2017 $513,382 $2,561,151 5.65% 28.26% Plan target rate of return: 5.82% Fixed Income I $6,005,015 66.09% * 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® CAPITAL MANAGEMENT Attachment 3 Asset Allocation - Central Contra Costa Sanitary District Pension As of First Quarter202O Current Asset Allocation Investment Vehicle Equity 28.26% Range: 20%-40% 2,567,751 Large Cap Core 6.23% IVV iShares Core S&P 500 565,638 4.11% VGIAX Vanguard Growth & Income Adm 373,819 Large Cap Value 3.20% IVE iShares S&P 500 Value 291,060 Large Cap Growth 2.51% IVW iShares S&P 500 Growth 228,264 Mid Cap Core 2.40% IWR iShares Russell Mid-Cap ETF 217,922 Small Cap Value 1.70% UBVFX Undiscovered Managers Behavioral Val R6 154,875 Small Cap Growth 1.77% RSEJX Victory RS Small Cap Growth R6 160,507 International Core 1.02% VEA Vanguard FTSE Developed Markets ETF 93,085 International Value 1.27% DODFX Dodge & Cox International Stock Fund 115,501 International Growth 1.30% MGRDX MFS® International Growth Fund Class R6 118,306 Emerging Markets 1.71% HHHFX Hartford Schroders Emerging Mkts Eq F 155,595 Real Estate 1.03% VNQ Vanguard Real Estate ETF 93,180 Fixed Income 66.09% Range: 50%-80% 6,005,015 44.64% Core Fixed Income Portfolio 4,056,140 Short-Term 2.71% VFSUX Vanguard Short-Term Investment-Grade Adm 246,494 Intermediate-Term 9.28% PTTRX PIMCO Total Return Instl Fund 843,354 9.45% PTRQX Prudential Total Return Bond Q 859,026 Cash 5.65% Range: 0%-20% 513,382 5.65% FGZXX First American Government Oblig Z 513,382 TOTAL 100.00% $9,086,148 JHIGHMARKO CAPITAL MANAGEMENT Attachment 3 Selected Period Performance PARS/CCCSD 115P - PENSION Account6746055901 Period Ending: 3/31/2020 Year Inception to Date to Date (3 Months) 1 Year 09/01/2017 Cash Equivalents .31 1.82 1.70 Lipper Money Market Funds Index .32 1.74 1.63 Fixed Income ex Funds 1.61 7.45 4.20 Total Fixed Income .98 6.75 3.86 BBG Barclays US Aggregate Bd Index 3.15 8.93 4.50 Total Equities -23.66 -13.59 -1.07 Large Cap Funds -20.30 -8.10 2.92 S&P 500 Composite Index -19.60 -6.98 3.77 Mid Cap Funds -27.08 -18.48 -2.47 Russell Midcap Index -27.07 -18.31 -2.22 Small Cap Funds -32.84 -25.80 -5.78 Russell 2000 Index -30.61 -23.99 -6.06 International Equities -24.06 -15.09 -6.18 MSCI EAFE Index -22.83 -14.38 -5.37 MSCI EM Free Index -23.60 -17.69 -7.08 Real Estate - ETFs / Sctr Fds -24.34 -16.99 -2.08 Wilshire REIT Index -25.63 -19.38 -3.81 Total Managed Portfolio -6.60 .55 2.44 CCCSD Pension -5.74 1.20 2.87 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%Ofigroup 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® CAPITAL MANAGEMENT Attachment 3 Fixed Income Portfolio: Statistics As of First Quarter 2020 CCCSD BC Aggregate Bond Pension Index Weighted Arerage Maturity 7.49 years 7.92 years Effective Duration 5.64 years 5.86 years Average Coupon 3.19% 3.11% Yield to Maturity 2.16% 1.63% Average Quality Aa2 Aa2 JHIGHMARKO CAPITAL MANAGEMENT Source: BondEdge Attachment 3 Fixed Income Portfolio: Sectors As of First Quarter 2020 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 CM❑ ABS CMBS ■CCCSD Pension 0.0% 23.5% 0.0% 38.2% 0.0% 25.7% 0.0% 12.5% 0.0% ■Barclays U.S.Aggregate Bond Index 0.0% 42.2% 1.3% 23.1% 4.3% 26.6% 0.0% 0.4% 2.1% JHIGHMARKO CAPITAL MANAGEMENT Source: BondEdge Attachment 3 Fixed Income Portfolio: Effective Duration and Effective Maturity As of First Quarter 2020 Effective Duration Effective Maturity 30% 40°1a 35°14 25% 30°/a 20% 25% 20% 15% 15°/a 10% 10°/a 5°/a 5% 00/0 0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 10+ p% Yrs. Yrs. 0-1 Yr. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 Yrs. 10+Yrs. ■ CCC SD Pension 18.01% 26.15% 10.36% 18.93% 11.29% 15 26°1/° ■CCCSD Pension 6.82% 18.59% 21.71% 16.26% 20.05% 16.57% BC Aggregate Bond Index 5.81% 36.66°/4 22.58% 10.6211/o 7.0711/o 17.2711/o BC Aggregate Bond Index 0.51% 26.07% 25.48% 20.58% 9.00% 18.36% JHIGHMARKO CAPITAL MANAGEMENT Source: BondEdge Attachment 3 Holdings- Reporting as of Trade Date Account:6746055901- PARS/CCCSD 115P- PENSION As of:31-Mar-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Cash&Cash Equivalents CASH (10,139.3800) $1.0000 ($10,139.38) Cash&Cash Equivalents FIRSTAMERN GOVT OBLIG FID CLZ#3676 FGZXX 523,521.8600 $1.0000 $523,521.86 Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 3,811.8980 $30.3000 $115,500.51 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 12,222.6640 $12.7300 $155,594.51 Equities ISHARES RUSSELL MIDCAP ETF IWR 5,048.0000 $43.1700 $217,922.16 Equities ISHARES S&P 500 GROWTH ETF IVW 1,383.0000 $165.0500 $228,264.15 Equities ISHARES S&P 500 VALUE ETF IVE 3,024.0000 $96.2500 $291,060.00 Equities ISHARES TR CORE S&P500 ETF IVV 2,189.0000 $258.4000 $565,637.60 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 3,920.0100 $30.1800 $118,305.90 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 4,166.6760 $37.1700 $154,875.35 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 2,792.0000 $33.3400 $93,085.28 Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 5,533.9530 $67.5500 $373,818.53 Equities VANGUARD REAL ESTATE ETF VNQ 1,334.0000 $69.8500 $93,179.90 Equities VICTORY RS SM CAP GROW#279 RSEJX 2,600.5730 $61.7200 $160,507.37 Fixed Income PIMCO TOTAL RETURN INSTIL #35 PTTRX 80,396.0340 $10.4900 $843,354.40 Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 61,800.4210 $13.9000 $859,025.85 Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 23,475.6630 $10.5000 $246,494.46 Fixed Income CC CCIT 2014-A1 2.880% 1/23/23 CC22823A 77,000.0000 100.869% $77,669.13 Fixed Income HA ROT 2017-4 A3 2.050% 11/22/21 H2A2121A 44,715.3700 99.983% $44,707.77 Fixed Income UNITED STATES TREAS 2.750% 6/30/23 UST0023B 5,000.0000 107.508% $5,375.40 Fixed Income WELLS FARGO&CO NEW 3.000% 10/23/26 WFC3026A 80,000.0000 102.214% $81,771.20 Fixed Income ABBVIE INC 3.200% 11/06/22 A133222 40,000.0000 102.025% $40,810.00 Fixed Income AMERICAN EXPRESS CO 3.000% 10/30/24 AEC3024 40,000.0000 102.291% $40,916.40 Fixed Income AMXCA 2017-3 A 1.770% 11/15/22 A2A1122 25,000.0000 99.958% $24,989.50 Fixed Income AT&T INC NTS 4.125% 2/17/26 AIN4126 40,000.0000 105.947% $42,378.80 Fixed Income BANK OF AMERICA CORP 3.194% 7/23/30 BOA3130 60,000.0000 102.004% $61,202.40 Fixed Income BB&T CORP SR MTN 2.850% 10/26/24 BCS2824 35,000.0000 101.139% $35,398.65 Fixed Income BERKSHIRE HATHAWAY 4.250% 1/15/49 BH44249 30,000.0000 122.974% $36,892.20 Fixed Income BK OF MONTREAL MTN 2.350% 9/11/22 BOM2322 30,000.0000 101.188% $30,356.40 Fixed Income BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 10,000.0000 101.592% $10,159.20 JHIGHMARK@ CAPITAL MANAGEMENT Attachment 3 Holdings- Reporting as of Trade Date Account:6746055901- PARS/CCCSD 115P- PENSION As of:31-Mar-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income BK OF NY MELLON MTN 2.050% 5/03/21 BON2021 20,000.0000 100.464% $20,092.80 Fixed Income BP CAPITAL MARKETS 3.796% 9/21/25 BCM3725 30,000.0000 102.327% $30,698.10 Fixed Income CAPITAL ONE NTS 3.800% 1/31/28 CON3828 50,000.0000 97.961% $48,980.50 Fixed Income CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 30,000.0000 101.651% $30,495.30 Fixed Income CHAIT 2016-A4 A 1.490% 7/15/22 C2A1422 25,000.0000 99.766% $24,941.50 Fixed Income CITIGROUP INC 3.200%10/21/26 C133226 45,000.0000 103.550% $46,597.50 Fixed Income COMCAST CORP NEW SR 4.150% 10/15/28 CCN4128 50,000.0000 112.281% $56,140.50 Fixed Income CONCHO RES INC 4.300% 8/15/28 CR14328 35,000.0000 86.356% $30,224.60 Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 30,000.0000 114.253% $34,275.90 Fixed Income DOWDUPONT INC 5.319% 11/15/38 D155338 25,000.0000 112.322% $28,080.50 Fixed Income ECOLAB INC SR NT 2.375% 8/10/22 EIS2322 20,000.0000 99.782% $19,956.40 Fixed Income ENBRIDGE INC SR GLBL3.125% 11/15/29 EIS3129 45,000.0000 90.952% $40,928.40 Fixed Income ENTERPRISE PROD OPER 4.900% 5/15/46 EPO4946 40,000.0000 95.731% $38,292.40 Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 24,350.1100 104.109% $25,350.66 Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 32,379.1500 105.788% $34,253.26 Fixed Income FGLMC#130401 3.000% 1/01/30 J30401F 62,839.7900 105.543% $66,323.00 Fixed Income FGLMC G08701 3.000% 4/01/46 G08701F 25,376.9000 105.664% $26,814.25 Fixed Income FHLMC G08823 3.500% 7/01/48 G08823F 85,202.8000 105.735% $90,089.18 Fixed Income FHLMC G15252 3.000% 12/01/29 G15252F 26,936.6200 105.430% $28,399.28 Fixed Income FHLMC Q38373 3.500% 1/01/46 Q38373 F 31,301.2900 106.530% $33,345.26 Fixed Income FHLMC SB8006 3.000% 9/01/34 SB8006A 44,803.7400 104.652% $46,888.01 Fixed Income FIFTH THIRD BANCORP 2.600% 6/15/22 FTB2622 30,000.0000 98.838% $29,651.40 Fixed Income FNMA#AB3678 3.500% 10/01/41 AB3678A 37,511.1900 107.544% $40,341.03 Fixed Income FNMA#MA3238 3.500% 11/01/47 MA3238A 114,625.0300 105.573% $121,013.08 Fixed Income FNMA#MA3276 3.500% 1/01/48 MA3276A 23,033.1000 105.564% $24,314.66 Fixed Income F N MA A L9376 3.0000%8/1/2031 A L9376A 25,799.2900 105.281% $27,161.75 Fixed Income FN MAAS4916 3.000% 5/01/30 AS4916A 36,186.5500 105.060% $38,017.59 Fixed Income FNMA AS7729 3.0000%8/1/2046 AS7729A 35,975.8900 105.625% $37,999.53 Fixed Income FNMA BC 1486 3.0000%8/1/2046 BC1486A 35,170.4000 105.602% $37,140.65 Fixed Income FNMA BM4913 3.000% 5/01/46 BM4913A 34,226.5200 105.691% $36,174.35 JHIGHMARK@ CAPITAL MANAGEMENT Attachment 3 Holdings- Reporting as of Trade Date Account:6746055901- PARS/CCCSD 115P- PENSION As of:31-Mar-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FNMA MA 2779 2.0000% 10/1/2026 MA2779A 24,440.1200 103.093% $25,196.05 Fixed Income FNMA MA2895 3.000% 2/01/47 MA2895A 22,791.2300 104.927% $23,914.15 Fixed Income FNMA MA3120 3.500% 9/01/47 MA3120A 91,760.3300 106.030% $97,293.48 Fixed Income FNMA MA3210 3.500% 11/01/47 MA3210A 37,212.5300 105.595% $39,294.57 Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 40,316.6200 105.352% $42,474.37 Fixed Income FNMA MA3332 3.500% 3/01/48 MA3332A 31,520.3300 105.533% $33,264.35 Fixed Income FNMA MA3489 3.500% 10/01/33 MA3489A 21,901.3800 105.246% $23,050.33 Fixed Income FNMA MA3536 4.000% 12/01/48 MA3536A 46,863.6700 106.477% $49,899.03 Fixed Income FORD CR AUTO OWN TR 0.000% 3/15/24 FCA0024 50,000.0000 99.784% $49,892.00 Fixed Income FORDO 2019-B A3 2.230%10/15/23 F2A2223 50,000.0000 100.897% $50,448.50 Fixed Income GENERAL MTRS FINL CO 4.000% 10/06/26 GMF4026 25,000.0000 84.970% $21,242.50 Fixed Income GOLDMAN SACHS BIDS 3.691% 6/05/28 GSB3628 60,000.0000 102.676% $61,605.60 Fixed Income HAIR 2017-4A-4 2.210% 3/21/24 H222224 25,000.0000 100.297% $25,074.25 Fixed Income HAROT 2019-1 A3 2.830% 3/20/23 H2A2823 50,000.0000 101.610% $50,805.00 Fixed Income HEWLETT PACKARD CO NT4.375% 9/15/21 HPC4321 20,000.0000 101.704% $20,340.80 Fixed Income KIMCO REALTY CORP 3.800% 4/01/27 KRC3827 50,000.0000 99.120% $49,560.00 Fixed Income MAGELLAN MIDSTREAM 5.000% 3/01/26 MM55026 25,000.0000 98.857% $24,714.25 Fixed Income NAR 2016-C A4 1.380% 1/17/23 NAR1323 53,330.1400 99.533% $53,081.09 Fixed Income NORFOLK SOUTHERN COR 4.150% 2/28/48 NSC4148 10,000.0000 105.515% $10,551.50 Fixed Income REPUBLIC SVCS NTS 3.375% 11/15/27 RSN3327 10,000.0000 101.515% $10,151.50 Fixed Income SHIRE ACQINV IRELAND2.875% 9/23/23 SA12823 35,000.0000 100.727% $35,254.45 Fixed Income TACT 2017-D A3 1.930% 1/18/22 T2A2222 15,024.1600 99.965% $15,018.90 Fixed Income TIME WARNER CABLE NT 7.300% 7/01/38 TWC7338 30,000.0000 122.726% $36,817.80 Fixed Income TOYOTA AUTO RECV OWN 2.520% 5/15/23 TAR2523 55,000.0000 101.500% $55,825.00 Fixed Income UNITEDAIR 4.150% 8/25/31 UA44131 31,109.0800 103.719% $32,266.03 Fixed Income UNTD AIR 2013-1 4.300% 8/15/25 UA24325 47,302.2500 99.978% $47,291.84 Fixed Income US TREAS BIDS 3.625% 8/15/43 UTB3643 255,000.0000 147.633% $376,464.15 Fixed Income US TREAS NTS 1.625% 4/30/23 UTN1623 150,000.0000 104.082% $156,123.00 Fixed Income US TREAS NTS 2.375% 5/15/27 UTN2327 135,000.0000 112.805% $152,286.75 Fixed Income VENTAS RLTY LTD 3.500% 4/15/24 VRL3524 20,000.0000 97.667% $19,533.40 JHIGHMARK@ CAPITAL MANAGEMENT Attachment 3 Holdings- Reporting as of Trade Date Account:6746055901- PARS/CCCSD 115P- PENSION As of:31-Mar-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income WALGREEN CO SR NT 3.100% 9/15/22 WCS3122 30,000.0000 100.136% $30,040.80 Fixed Income WORLD OMNI AUTO RECV 3.020% 4/15/22 WOA3022 37,401.6400 100.209% $37,479.81 Fixed Income BOSTON PPTYS LTD PAR 2.750% 10/01/26 BXP26A 40,000.0000 94.304% $37,721.60 Fixed Income JPMORGAN CHASE&CO 3.200% 6/15/26 JPM26B 60,000.0000 103.862% $62,317.20 Fixed Income ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 20,000.0000 102.634% $20,526.80 Fixed Income AMERICAN INTL GROUP 3.900% 4/01/26 AIG26 40,000.0000 102.993% $41,197.20 Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 25,000.0000 103.936% $25,984.00 Fixed Income EL PASO ENERGY CORP 7.800% 8/01/31 EP31 30,000.0000 113.712% $34,113.60 Fixed Income FORD MTR CO NTS 7.450% 7/16/31 F31 25,000.0000 72.000% $18,000.00 Fixed Income BRISTOL MYERS SQUIBB 3.250% 2/20/23 35,000.0000 105.006% $36,752.10 Fixed Income US TREAS NTS 1.625% 8/15/29 245,000.0000 108.535% $265,910.75 Fixed Income VERIZON COMMUNICATIO 5.250% 3/16/37 25,000.0000 127.012% $31,753.00 SUBTOTALS Cash&Cash Equivalents $513,382.48 Equities $2,567,751.26 Fixed Income $6,005,014.60 TOTALS $9,086,148.34 JHIGHMARK@ CAPITAL MANAGEMENT Attachment 3 CENTRAL CONTRA COSTA SANITARY DISTRICT For Period Ending March 31 , 2020 EQUITYLARGE CAP , 3-Month YTD 1-Year 3-Year 5-Year 10-Year Fund Name Inception Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank iShares Core S&P 500 ETF (4/17) -19.60 33 -19.60 33 -7.01 26 5.07 20 6.68 12 10.47 9 iShares S&P 500 Value ETF (4/17) -25.34 37 -25.34 37 -12.34 13 -0.09 27 3.29 19 8.01 25 Vanguard Growth & Income Adm (12/16) -20.37 52 -20.37 52 -8.81 48 4.19 38 6.05 29 10.39 13 iShares S&P 500 Growth ETF (4/17) -14.55 46 -14.55 46 -2.65 49 9.40 45 9.29 31 12.38 25 S&P 500 TR USD -19.60 -- -19.60 -- -6.98 -- 5.10 -- 6.73 -- 10.53 EQUITY -- MID CAP iShares Russell Mid-Cap ETF (3/16) -27.09 34 -27.09 34 -18.44 35 -0.94 21 1.70 17 8.60 11 Russell Mid Cap TR USD -27.07 -- -27.07 -- -18.31 -- -0.81 -- 1.85 -- 8.77 EQUITY -- SMALL CAP Undiscovered Managers Behavioral Val R6 (9/16) -40.82 84 -40.82 84 -35.97 79 -11.71 63 -3.26 30 6.21 5 Russell 2000 Value TR USD -35.66 -- -35.66 -- -29.64 -- -9.51 -- -2.42 -- 4.79 -- Victory RS Small Cap Growth R6 (2/19) -24.03 45 -24.03 45 -14.42 29 6.02 23 4.13 31 11.11 13 INTERNATIONAL • Dodge& Cox International Stock -30.50 76 -30.50 76 -22.28 59 -7.42 74 -4.39 79 1.61 31 Vanguard FTSE Developed Markets ETF (9/18) -24.01 63 -24.01 63 -15.80 55 -2.37 50 -0.56 32 2.76 24 MFS International Growth R6 -18.65 42 -18.65 42 -8.03 48 5.04 17 4.21 16 5.42 18 MSCI EAFE NR USD -22.83 -- -22.83 -- -14.38 -- -1.82 -- -0.62 -- 2.72 -- Hartford Schroders Emerging Mkts Eq F -23.22 28 -23.22 28 -15.03 23 -0.14 20 0.95 17 1.38 30 IMSCI EM Free Index -23.60 -- -23.60 -- -17.69 -- -1.62 -- -0.37 -- 0.68 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@ CAPITAL MANAGEMENT Attachment 3 CENTRAL CONTRA COSTA SANITARY DISTRICT For Period Ending March 31 , 2020 REIT EQUITY FUNDS 3-Month YTD 1-Year 3-Year 5-Year 10-Year Fund Name Inception Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank Vanguard Real Estate ETF (4/17) -24.11 45 -24.11 45 -16.60 41 -1.48 49 0.48 45 7.88 40 Wilshire REIT Index -25.63 -- -25.63 -- -19.38 -- -2.49 -- -0.19 -- 7.67 BOND FUNDS PIMCO Total Return Instl 2.19 10 2.19 10 7.64 7 4.51 8 3.24 14 4.11 32 PGIM Total Return Bond R6 (5/16) -2.84 76 -2.84 76 3.80 66 3.98 24 3.28 8 4.86 7 Vanguard Short-Term Investment-Grade Adm -1.50 51 -1.50 51 2.03 36 2.16 23 2.04 12 2.40 18 BBgBarc US Agg Bond TR USD 3.15 -- 3.15 -- 8.93 -- 4.82 -- 3.36 -- 3.88 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@ CAPITAL MANAGEMENT