HomeMy WebLinkAbout06.b. Review Highmark Capital Management GASB45 OPEB and Pension Prefunding sub-trust reports for Third Quarter 2020 Page 1 of 37
Item 6.b.
,orVIOIN SAN
November 16, 2020
TO: FINANCE COMMITTEE
FROM: KEVIN MIZUNO, FINANCE MANAGER
REVIEWED BY: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: REVIEW HIGHMARK CAPITAL MANAGEMENT GOVERNMENT
ACCOUNTING STANDARDS BOARD (GASB)45 OTHER POST-
EMPLOYMENT BENEFITS (OPEB)AND PENSION PREFUNDING SUB-
TRUST REPORTS FOR THE THIRD QUARTER OF CALENDAR YEAR 2020
Attached for review is a trust performance overview provided by Highmark as well as OPEB and Pension
Pre-funding sub-trust investment reports for the quarter ending September 30, 2020. An overview slide
showing the entities involved in administering the OPEB and Pension Pre-funding Trusts for Central San
is also attached.
Central San's Investment Manager at Highmark, Andrew Brown, has provided an in-depth analysis of
market and fund performance attached to this Memo (Attachment 3). 1 n summary, this quarter reflects
positive returns of 4.04% and 2.68% for the Central San's OPEB and Pension Pre-funding sub-trusts,
respectively. These single digit returns are in sharp contrast to the extreme volatility reported in the first
and second quarters of 2020 caused by the world-wide response to attempt to curb the spread of the
COVI D-19 pandemic. Following a strong market rebound in the prior quarter, this quarter's more modest
growth may also be a result of market speculation prior to the November 3rd general election. Calendar
year-to-date returns are 3.19% and 4.26% for the OPEB and Pension Pre-funding trusts respectively,
falling slightly short of the long-term target returns for each fund of 6.25% and 5.82% respectively.
Central San's OPEB and Pension-Prefunding Trust investment manager, Andrew Brown, is expected to
attend the Committee meeting to provide a brief presentation highlighting market trends as well as
quarterly performance of the trusts.
Strategic Plan Tie-In
GOAL THREE:Fiscal Responsibility
Strategy 1—Maintain financial stability and sustainability, Strategy 2—Ensure integrity and transparency in financial
management
November 16, 2020 Special FINANCE Committee Meeting Agenda Packet- Page 148 of 188
Page 2 of 37
ATTACHMENTS:
1. Overview of Entities Administering Trusts
2. Highmark Overview of Third Quarter 2020
3. PARS Investment Report Third Quarter 2020
November 16, 2020 Special FINANCE Committee Meeting Agenda Packet- Page 149 of 188
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.LASTINO 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
PU AGENCY PARS
RETIREMENT
SERVICES
TRUSTED sI jj�ogsI&1?19uI I20 Special FINANCE Committee Meeting Agenda Packet- Page 150 of 188
Page 4 of 37
Attachment 2
JHIGHMARK@
CAPITAL MANAGEMENT
October 21, 2020
Phil Leiber
Director of Finance and Administration
Central Contra Costa Sanitary District
5019 Imhoff Place
Martinez, CA 94553-4392
RE: 3Q Quarter 2020 OPEB/Pension Report
Dear Mr. Leiber,
Our quarterly economic and market review touches on the health of the consumer,
changes in the policy framework at the Federal Reserve, and potential post-election
considerations.
Consumer Outlook in a COVID world
With the exception of the 2008 Global Financial Crisis (GFC), the seven-month old
COVID-19 pandemic has caused unparalleled impact on consumers and businesses
globally. While questions remain around the duration of the pandemic-- as the world
waits for vaccine developments, distribution and acceptance -- it is clear that consumer
and business behavior has structurally changed.
To begin with, the pandemic has fast-tracked many trends that were already underway
pre-crisis. This includes consumer adoption of e-commerce at the expense of traditional
retail, an increased demand for enterprise and industrial automation, the growing
consumption of digital entertainment, and a surge in the usage of food delivery. All of
these trends reflect an acceleration of the digital transformation of business --a trend
that is senior to the pandemic with both positive and negative implications for various
domestic and global industries.
Shared and Service Economies Unravel
One pre-COVID trend that has clearly been stopped in its tracks is the movement
towards a "shared economy". Consumers who previously opted for shared services— an
Uber ride or an Airbnb stay in a stranger's home— rapidly shunned these services as the
virus continued to spread. The "rent-not-own economy" in development since the GFC-
era mortgage crisis has also shifted as consumers fled urban centers like San Francisco
and New York City to buy homes in less dense areas. While this "flight to safety" has
negatively impacted apartment rentals and commercial real estate, the Housing and
Automotive industries have seen some of the swiftest post-recession recoveries.' This
1 Source: Morgan Stanley,Global Economics Factbook, "How Does GCR Recovery Compare with the
GFC?",September 22,2020
November 16, 2020 Special FINANCE Committee Meeting Agenda Packet- Page 151 of 188
Page 5 of 37
has been in part due to the shift away from urban centers, but also by the historically
low-interest rate environment enabling greater affordability to purchase a new home or
vehicle.
Inarguably though, the sector of the economy most deeply impacted by the COVID crisis
has been the service sector, given the challenges of either voluntary or mandated social
distancing. This has most negatively impacted the retail, restaurant, travel and leisure
industries, which combined historically has made up 18% of U.S. GDP and 27% of the
U.S. job market.2 If the unraveling of the shared and service economies persists, it will
continue to weigh on the recovery of a significant part of the economy and increase the
risk of a potentially higher level of permanent U.S. unemployment.
Consumers saving for a rainy day
As evident in comparison to the GFC, each recession carries its own set of impacts and
outcomes. The COVID-19 recession has certainly been unique, particularly with the
ongoing uncertainty of combatting the virus, the ramifications of the U.S. elections, and
the potential challenges confronting the economy in 2021. One of those challenges is
the level of consumer spending., Accounting for nearly 70% of U.S. GDP', spending will
be a major factor in determining how effectively and quickly the economy heals. The
good news is that various fundamentals of the consumer backdrop provide some
glimmers of hope that the U.S. consumer could be more resilient than expected.
One critical difference today versus the GFC is the impressive boost of consumer
liquidity triggered in March by the historic Coronavirus Aid, Relief, and Economic
Security (CARES) Act. Coupled with an intentional lack of spending during the early
months of the crisis, this created an exceptional surplus of unspent consumer capital.
Since the stimulus hit consumer wallets, the U.S. Bureau of Economic Analysis data
indicates consumers have built up excess savings of over$12 trillion.
The Fed's New Era
The long-awaited changes to the Federal Reserve's (Fed) policy-making framework
were unveiled in late August at the Fed's annual central banking economic symposium.
The underlying changes have a significant effect on the rate-setting activity of the
Federal Open Market Committee (FOMC), which has guided monetary policy decisions
for the last few decades. We believe this new framework has significant implications for
monetary policy, the economy, and financial markets going forward.
For more than three decades, the Fed has conducted a symmetric monetary policy that
attempts to balance their estimate of full employment versus a reasonable, yet low,
inflation rate. This trade-off is embodied in the Phillips curve, an economic concept
ZSource: U.S. Bureau of Labor Statistics
3 Source: U.S. Bureau of Economic Analysis. Consumer spending as a %of GDP was 67 percent at the end
of Q1 and Q2 2020 and 68 percent for Q4 2019.
November 16, 2020 Special FINANCE Committee Meeting Agenda Packet- Page 152 of 188
Page 6 of 37
stating that inflation and unemployment have a stable and inverse relationship. The
concept claims that economic growth results in job growth and lower unemployment, yet
also sparks an increase in inflation. As economic growth improves and the
unemployment rate approaches the Fed's estimate of maximum employment, known by
the acronym NAIRU4, it would typically tighten monetary policy through increasing the
federal funds target rate and the discount rate to prevent the economy from overheating
and future inflation from rising above their long-term core inflation target.
Recently, however, factors such as technological innovation, productivity enhancement,
and globalization might have changed the slope of the Phillips curve and caused
disinflation, if not outright deflation, in some products and industries. As a result, some
market pundits question the Fed's monetary policy-tightening actions over the past two
decades, which typically focused on preempting an unwelcome rise in inflation as
economic growth increased and unemployment approached NAIRU. The implications
of this new framework are vast. In general, the new approach should allow for a more
accommodative monetary policy for the foreseeable future which, in turn, is a positive
tailwind for economic growth and broad-based labor market outcomes. Essentially, the
Fed will let the economy run hotter than prior policy would recommend and won't pre-
emptively tighten policy, thereby lengthening the economic cycle. Further, continuing a
lower-rate stance should benefit risk assets near term, as lower rates further fuel the
hunt for investment returns that offer a higher investment return than what the current
yield curve represents. In the long term, however, this new and untested policy
framework could lead to monetary policy mistakes associated with too much policy
accommodation for too long.
Given that the impact of monetary policy has a delayed effect on the economy, one
result could be an upside surprise in the rate of inflation over the longer term, leading to
higher intermediate and longer maturity interest rates, as well as a steeper U.S.
Treasury yield curve. Further, the Fed's new "run hotter for longer" policy framework
could also perpetuate asset bubbles over the longer term and, should additional
economic shocks occur prior to the removal of monetary policy accommodation, the Fed
could well be left with a limited toolkit to fight future downturns.
Just Around the Corner—November 3
As the nation moves towards an election day marked by a lengthy campaign season
several topics surface:
• A contested election: Our biggest concern is not the outcome, but rather
a contested election that takes weeks or longer to resolve. This would be
damaging, elevate market risk, and create legislative acrimony not unlike the
2000 election that saw the S&P 500 Index slide nearly 10% before the
Supreme Court intervened some five weeks after the polls closed.
a Non-Accelerating Inflation Rate of Unemployment
November 16, 2020 Special FINANCE Committee Meeting Agenda Packet- Page 153 of 188
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• Reshoring capital back to the U.S.: No matter who is elected, there will
be a significant focus on domestic policy and re-shoring capital investment
back to this country. We expect to see both potential presidential and
congressional administrations push forward this approach.
• A presidential change in November may seem like a shakeup.
Markets have been blase about the upcoming presidential elections and the
Trump versus Biden polling data. Investors should be keying into a potential
party flip in the Senate that could change the market outlook. With a Biden
presidency and a Senate flip to blue, tail risk from aggressive policy moves
that might shift the path of the economic expansion could increase.
• Biden wins and the Republicans hold the Senate. This result could
be bullish for markets, with both parties keeping each other in check and
operating on compromise. Markets like bipartisan gridlock and it might soothe
market anxiety over a new transition to power. We can also expect less angst
and acrimony which could ripple through into the markets.
Plan Performance
The Central Contra Costa Sanitary District OPEB Plan gained 4.24% gross of
investment fees for the third quarter. The leading category was large cap equity, which
returned 8.6%. Once again, large cap equity was led by large cap growth shares with
the iShares S&P500 Growth ETF gaining 11.7%. In contrast, large cap value exposure
to the iShares S&P500 Value ETF gained a mere 4.8%. While the Plan's equity
segment invests in index oriented investments, to give you a `feel' regarding the
underlying drivers of this continued performance disparity- sectors that dominate the
large cap value part of the market include energy, financials, real estate, and utilities.
Conversely the growth segment has a much larger exposure to the technology and
communication services sector. Within the iShares S&P 500 Growth ETF, companies
such as Facebook (27.6% Year-to-date though 9/30), Amazon (70.4% YTD), Apple
(58.8% YTD), Adobe (48.7% YTD), and Microsoft (34.4% YTD) represent sizeable
constituents from technology, and their stock prices have soared in 2020. In contrast,
energy companies such as Exxon (48% year-to-date through 9/30) and Chevron (-
37.8% YTD) have struggled. Large cap value financial companies that have lagged
year-to-date include JP Morgan (-29.1% YTD), Citigroup (-44.5% YTD) and AIG (-44.6%
YTD). Historically these companies have been thought of as `blue chip' companies, but
in 2020 they have left value investors feeling, `just blue'. Small cap equity returns were
slightly above the benchmark (5.2% vs. the Russell 2000 Index 4.9%). As was the case
in the large cap segment, returns were supported by our `growth' manager the Victory
RS Small Cap Growth Fund, which gained 9.5% in the quarter.
Investment returns within the international equity segment was largely supported by our
emerging market manager, Hartford Schroders Emerging Market Fund (+11.3%), which
was a large contributor to the Plan's 7.3% international equity return for the quarter.
Stock indices in Emerging Asia led gains for the index. Positive returns from the region
included: China +12.5%, Korea +12.8°/x, Taiwan +16.5% and India +15%. This region
November 16, 2020 Special FINANCE Committee Meeting Agenda Packet- Page 154 of 188
Page 8 of 37
has been supported by the gains from the global tech sector, and, outside of India,
relatively low levels of transmission of the Covid-19 virus.
Credit spreads continued to tighten in the third quarter with the economy showing signs
of improvement. Moreover, spreads were supported by positive trends in the
development of vaccines, and finally, the U.S. Federal Reserve continued to provide
support to the market— all of these forces supported gains in the bond market. While
the absolute returns of the second quarter where not matched in this quarter, all four of
our fixed income investments outperformed the Bloomberg Barclays Aggregate Bond
Index return. Our fixed income segment gained 1.04% in the third quarter, well ahead of
the benchmark target of 0.62%.
We ended the quarter with a target asset allocation of 50% stocks, 48.5% bonds and
1.5% cash. We have gradually increased our equity allocation target within the asset
allocation range of the Moderate objective over the course of the summer months. The
path of the virus, the election process, and the potential aftermath of what ensues on
November 4 are risks that we face. However, with both fiscal and monetary policies in
place, encouraging economic fundamentals, and the hopeful development of therapies
and vaccines, we are encouraged that 2021 can bring a combination of moderate growth
and a resumption of a lifestyle that we enjoyed before 2020 began.
The Central Contra Costa Sanitary District Pension Plan returned 2.84% in the quarter,
gross of investment fees, which outgained the District's Plan benchmark target of 2.68%.
The target asset allocation for the pension plan is at a `neutral' weight of 30% stocks,
69% bonds, and 1% cash.
Andrew Brown
November 16, 2020 Special FINANCE Committee Meeting Agenda Packet- Page 155 of 188
PUBLIC
AGENCY
RETIREMENT
SERVICES PARS
TRUSTED SOLUTIONS. LASTING RESULT•
J -
CENTRAL CONTRA COSTA SANITARY DISTRICT
PARS 115 Trust - OPEB Prefunding Program and Pension Rate Stabilization Program
November 16, 2020
CONTACTS
AGENCY
RETIREMENT PARS -AH I G HMARK°
SERVICES
TRUSTED SOLUTIONS.LASTING RESULTS. CAPITAL MANAGEMENT
Mitch Barker Andrew Brown, CFA
Executive Vice President Director, Senior Portfolio Manager
(800) 540-6369 x116 (415) 705-7605
mbarker@pars.org andrew.brown@highmarkcapital.com
Angela Tang
Client Services Coordinator
(800) 540-6369 x159
atang@pars.org
EMBNPARS
AGENCY
RETIREMENT
NT
SERVICES
CENTRAL CONTRA COSTA SANITARY DISTRICT 2
TRu.TED.WWWA'G199u 20 Special FINANCE Committee Meeting Agenda Packet- Page 157 of 188
PARS 115 TRUST TEAM
Trust Administrator & Consultant
AGFN PARS Recordkeeping Processes contributions/disbursements
RETIREMENT
SERYIM • Sub-trust accounting • Hands-on, dedicated support teams
TRUSTED SOLUTIONS.LASTINO RESULTS. . Monitors plan compliance • Coordinates all agency services
36 2,000+ 1 ,000+ 500 K+ SUB
Years of Experience Plans under Public Agency Plan Participants Assets under
(1984-2020) Administration Clients Administration
Investment Manager
CVbanks -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 S16.2B
Years of Experience Assets under Years of Experience Assets under
(1863-2020) Administration (1919-2020) Management
rasuc PARS
AGENCY
RETIREMENT
SERVICES
CENTRAL CONTRA COSTA SANITARY DISTRICT 3
TRUSTED' YSKw+ "M?L1b20 Special FINANCE Committee Meeting Agenda Packet- Page 158 of 188
�
PARS IRS-APPROVED SECTION 115 TRUST
Prefund • ' GASB 75 0 GASB 68
1111
General Fund
prefund
Retiree Medical Benefits either or both Pension Rate Stabilization Program
Assets can be used to: Assets can be used to:
provider�r Reimburse agency; or F_ Reimburse agency; or
Pay benefits
Subaccounts Financial Stability Flexible Investing
OPEB and pension assets are Assets in the PARS Section 115 Allows separate investment
individually sub-accounted, Combination Trust can be used strategies for OPEB and
and can be divided by dept., to address unfunded liabilities. pension subaccounts.
bargaining group, or cost center.
OAnytime Access Economies-of-Scale No Set Up Cost or Minimums
Trust funds are available OPEB and pension assets No set-up costs, no minimum
anytime; OPEB for OPEB aggregate and reach lower fees annual contribution amounts,
and pension for pension. on tiered schedule sooner - and no fees until assets are added.
saving money!
EL T PARS
AGENCY
RETIREMEMUNT
SERVICES
CENTRAL CONTRA COSTA SANITARY DISTRICT 4
........ WWA� 199u 20 Special FINANCE Committee Meeting Agenda Packet- Page 159 of 188
W
SUMMARY OF AGENCY' S OPEB PLAN
Plan Type: IRC Section 115 Irrevocable Exclusive Benefit Trust
Trustee Approach: Discretionary
Plan Effective Date: November 6, 2008
Plan Administrator: Finance Manager
Current Investment Strategy: Moderate HighMark Plus (Active) Strategy; Individual Account
AS OF SEPTEMBER 30, 2020:
Initial Contribution: March 2009: $560,000
Additional Contributions: $43,448,700
Total Contributions: $44,008,700
Disbursements: $0
Total Investment Earnings: $30,221,218
Account Balance: $72,763,904
PUBLIC
AGENCY
MENT PARS
RETIREMENT A1
SERVICES
TRUSTEEs4�'d�PM?'1b20 Special FINANCE Committee Meeting Agenda Packet- Page 160 of 188 CENTRAL CONTRA COSTA SANITARY DISTRICT 5
SUMMARY OF AGENCY' S PENSION PLAN
Plan Type: IRC Section 115 Irrevocable Exclusive Benefit Trust
Trustee Approach: Discretionary
Plan Effective Date: July 20, 2017
Plan Administrator: Finance Manager
Current Investment Strategy: Moderately Conservative HighMark Plus (Active) Strategy; Individual Account
AS OF SEPTEMBER 30, 2020:
Initial Contribution: August 2017: $3,359,000
Additional Contributions: $5,750,000
Total Contributions: $9,109,000
Disbursements: $0
Total Investment Earnings: $1,419,546
Account Balance: $10,609,855
PUBLIC
AGENCY
MENT PARS
RETIREMENT A1
SERVICES
TRUSTEos4�'SKw+K ?'1b20 Special FINANCE Committee Meeting Agenda Packet- Page 161 of 188 CENTRAL CONTRA COSTA SANITARY DISTRICT 6
PARS: Central Contra Costa Sanitary District
OPEB and Pension Plan
Third Quarter 2020
Presented by
Andrew Brown, CFA
JHIGHMARKO
CAPITAL MANAGEMENT
Investment Summary Since Inceptiori
CCCSD - OPEB Beginning Value 566,683.26
Asset Allocation Contributions 106,493,554.82
Withdrawals -64,485,320.82
Total Assets: $72,627,252 Gain (Loss) 14,579,379.29
Interest and Dividends 15,472,955.23
Period Ending: 9-30-2020 Net Accrued Income 132,087.91
3Q20 Return: 4.24% Ending Market Value $72,759,339.69*
1 Year Return: 7.63%
Inception-to-Date Return: 9.07% Cash
Inception Date:4-1-2009 $1,056,979
1.46%
Plan target rate of return: 6.25%
Equity
$36,443,717
50.180]0
Fixed Income
$35,126,556
48.37%
* Ending Market Value differs from total market value on page 3 due to differences in reporting methodology. The above ending market value includes accruals.
JH IGHMARK® PARS: Central Contra Costa Sanitary District
8
CAPITAL MANAGEMENT
Asset Allocation - Central Contra Costa Sanitary District OPEB
As of Third Quarter 2020
Current Asset Allocation Investment Vehicle
Equity 50.18% Range:40%-60% 36,443,717
Large Cap Core 10.99% IVV iShares Core S&P 500 ETF 7,978,737
7.11% VGIAX Vanguard Growth & Income Adm 5,165,307
Large Cap Value 4.92% IVE iShares S&P 500 Value ETF 3,572,312
Large Cap Growth 5.02% IVW iShares S&P 500 Growth ETF 3,642,514
Mid Cap Core 4.97% IWR iShares Russell Mid-Cap ETF 3,612,645
Small Cap Value 3.58% UBVFX Undiscovered Managers Behavioral Val R6 2,600,693
Small Cap Growth 3.56% RSEJX Victory RS Small Cap Growth R6 2,585,896
International Core 2.55% VEA Vanguard FTSE Developed Markets ETF 1,852,893
International Value 1.43% DODFX Dodge & Cox International Stock Fund 1,042,105
International Growth 1.50% MGRDX MFS® International Growth Fund Class R6 1,092,808
Emerging Markets 3.30% HHHFX Hartford Schroders Emerging Mkts Eq F 2,397,663
Real Estate 1.24% VNQ Vanguard Real Estate ETF 900,144
Fixed Income 48.37% Range:40%-60% 35,126,556
28.36% Core Fixed Income Portfolio 20,599,556
Short-Term 3.04% VFSUX Vanguard Short-Term Investment-Grade Adm 2,205,628
Intermediate-Term 8.48% PTTRX PIMCO Total Return Instl Fund 6,157,970
8.49% PTRQX Prudential Total Return Bond Q 6,163,402
Cash 1.46% Range: 0%-20% 1,056,979
1.46% FGZXX First American Government Oblig Z 1,056,979
TOTAL 100.00% $72,627,252
JHIGHMARK PARS: Central Contra Costa Sanitary District
9
CAPITAL MANAGEMENT
Selected Period Performance
CCCSD - OPEB
Period Ending: 9/30/2020
Year Inception
to Date to Date
3 Months (9 Months) 1 Year 3 Years 5 Years 10 Years 04/01/2009
Cash Equivalents .01 .35 .75 1.45 1.03 .53 .50
Lipper Money Market Funds Index .40 .78 1.41 .96 .48 .43
Fixed Income ex Funds .71 6.41 7.08 5.28
Total Fixed Income 1.04 6.40 6.85 5.23 4.48 3.75 4.90
BBG Barclays US Aggregate Bd Index .62 6.79 6.98 5.24 4 18 3.64 .35
Total Equities 7.80 -.10 8.47 7.86 10.79 10.57 13.21
Large Cap Funds 8.59 4.23 13.53 11.40 13.06 12.74 14.62
S&P 500 Composite Index 8.93 5.57 15.15 12.28 14.15 13.74 15.70
Mid Cap Funds 7.34 -2.46 4.37 6.92 9.62 10.28
Russell Midcap Index 7.46 -2.35 4.55 7.13 10.13 11.76 15.42
Small Cap Funds 5.17 -8.63 .81 4.00 8.99 11.97 15.24
Russell 2000 Index 4.93 -8.69 .39 1.77 8.00 9.85 13.23
International Equities 7.28 -3.77 5.73 1.83 6.77 3.74 8.23
MSCI EAFE Index 4.80 -7.09 .49 .62 5.26 4.62 8.03
MSCI EM Free Index 9.56 -1.16 10.54 2.42 8.97 2.50 8.32
Real Estate - ETFs / Sctr Fds 1.63 -12.50 -12.03 2.61
Wilshire REIT Index 1.25 -16.74 -17.69 .45 3.65 8.00 15.04
Total Managed Portfolio 4.24 3.12 7.63 6.71 7.66 7.23 9.07
CCCSD OPER 4.07 3.19 7.82 6.50 7.61 7.22 9.03
Account Inception:4/2009
CCCSD OPEB Benchmark consists of: 26.5%of S&P 500,5%Russell Midcap,7.5%Russell 2000, 1.75%Wilshire REIT,3.25%MSCI EM Free,6% MSCI EAFE,33.5%BC Aggregate, 10%ML 1-3
Yr US Corp/Govt, 1.5%ML US High Yield Mstr II,and 5%Citigroup 1 Month T-Bill Indexes. Returns are gross-of-fees unless otherwise noted. Returns for periods over one year are annualized.The
information presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank
guarantee, and may lose value.
JH IGHMARK® PARS: Central Contra Costa Sanitary District
10
CAPITAL MANAGEMENT
Fixed Income Portfolio: Statistics
As of Third Quarter 2020
CCCSD BC Aggregate Bond
OPEB Index
Weighted Average Maturity 7.75 years 8.31 years
I
Effective Duration 5.93 years 6.22 years
Average Coupon 2.98% 2.93%
Yield to Maturity 1.34% 1.22%
Average Quality Aa3 Aa2
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
11
CAPITAL MANAGEMENT Source: BondEdge
Fixed Income Portfolio: Sectors
As of Third Quarter 2020
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0% id
E-3 1— 0
0.0% Cash Treasury Agency Corp Non-Corp MBS CM❑ ABS CMBS
■CCCS❑❑PEB 0.0% 21.6% 0.0% 39.9% 0.8% 26.0% 0.0% 11.6% 0.0%
■Barclays U.S.Aggregate Bond Index 0.0% 37.6% 1.6% 27.6% 4.6% 26.0% 0.0% 0.3% 2.3%
JHIGHMARK PARS: Central Contra Costa Sanitary District
12
CAPITAL MANAGEMENT Source: BondEdge
Fixed Income Portfolio: Effective Duration and Effective Maturity
As of Third Quarter 2020
Effective Duration Effective Maturity
35%
40°/°
35°/° 30%
30°/°
25°/0
25°/°
20%
20°/°
15%
15°/°
10°I° 10%
5°I° 5%
0°/°
0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 10+ 0%
Yrs. Yrs. 0-1 Yr. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 Yrs. 10+Yrs.
■CCCSD OP EB 7.08% 34.63% 10.97% 16.73% 14.14% 16.45% ■CCCSD OPEB 5.43% 17.46% 19.68% 22.91% 14.94% 19.57%
BC Aggregate Bond Index 3.40% 36.18% 23.04% 10.98% 7.50% 18.89% BC Aggregate Bond Index 0.36% 22.14% 31.44% 16.36% 9.80% 19.89%
JHIGHMARK PARS: Central Contra Costa Sanitary District
13
CAPITAL MANAGEMENT Source: BondEdge
Holdings-Reporting as of Trade Date
Account:6746055900-PARS/CCCSD 115P-OPEB
As of:30-Sep-2020
Asset Type Asset Name Ticker Shares/Units Price Market Value
Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 29,190.6220 $35.7000 $1,042,105.21
Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 141,789.6610 $16.9100 $2,397,663.17
Equities ISHARES RUSSELL MIDCAP ETF IWR 62,960.0000 $57.3800 $3,612,644.80
Equities ISHARES S&P 500 GROWTH ETF IVW 15,763.0000 $231.0800 $3,642,514.04
Equities ISHARES S&P 500 VALUE ETF IVE 31,768.0000 $112.4500 $3,572,311.60
Equities ISHARES TR CORE S&P500 ETF IVV 23,742.0000 $336.0600 $7,978,736.52
Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 28,377.2610 $38.5100 $1,092,808.32
Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 57,321.8680 $45.3700 $2,600,693.15
Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 45,303.0000 $40.9000 $1,852,892.70
Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 58,431.0760 $88.4000 $5,165,307.12
Equities VANGUARD REAL ESTATE ETF VNQ 11,400.0000 $78.9600 $900,144.00
Equities VICTORY RS SM CAP GROW#279 RSEJX 28,205.6740 $91.6800 $2,585,896.19
Fixed Income PIMCO TOTAL RETURN INSTL #35 PTTRX 563,400.7070 $10.9300 $6,157,969.73
Fixed Income PRUDENTIAL TOTAL RTRN BD CLQ PTRQX 414,485.6630 $14.8700 $6,163,401.81
Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 200,876.9070 $10.9800 $2,205,628.44
Fixed Income HAROT2017-3 A3 1.790% 9/20/21 H2A1721B 15,577.6100 100.168% $15,603.78
Fixed Income HAROT 2017-4 A3 2.050%11/22/21 H2A2121A 50,816.8100 100.355% $50,997.21
Fixed Income WELLS FARGO&CO NEW 3.000%10/23/26 WFC3026A 300,000.0000 109.309% $327,927.00
Fixed Income AMERICAN EXPRESS CO 3.000%10/30/24 AEC3024 185,000.0000 108.494% $200,713.90
Fixed Income AMXCA 2017-6A 2.040% 5/15/23 \2A2023 100,000.0000 100.070% $100,070.00
Fixed Income ANHEUSER-BUSCH INBEV 4.900% 1/23/31 A144919 150,000.0000 125.805% $188,707.50
Fixed Income AT&T INC GLBL NT 3.500% 6/01/41 AIG3541 260,000.0000 105.066% $273,171.60
Fixed Income BANK OF AMERICA CORP 3.194% 7/23/30 BOA3130 280,000.0000 110.017% $308,047.60
Fixed Income BB&T CORP SR MTN 2.850%10/26/24 BCS2824 210,000.0000 108.365% $227,566.50
Fixed Income BERKSHIRE HATHAWAY 4.250% 1/15/49 BH44249 175,000.0000 130.124% $227,717.00
Fixed Income BK OF MONTREAL MTN 2.350% 9/11/22 BOM2322 205,000.0000 103.954% $213,105.70
Fixed Income BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 70,000.0000 103.466% $72,426.20
Fixed Income BP CAPITAL MARKETS 3.796% 9/21/25 BCM3725 170,000.0000 112.717% $191,618.90
Fixed Income BRISTOL-MYERS SQUIBB 3.250% 2/20/23 BS33223 175,000.0000 106.362% $186,133.50
Fixed Income BROWN &BROWN INC SR 2.375% 3/15/31 BB12331 80,000.0000 100.615% $80,492.00
Fixed Income CAPITALONECCTR 0.0001% 8/15/24 C000024 250,000.0000 102.732% $256,830.00
Fixed Income CAPITAL ONE NTS 3.800% 1/31/28 CON3828 250,000.0000 111.601% $279,002.50
JHIGHMARK PARS: Central Contra Costa Sanitary District
14
CAPITAL MANAGEMENT
Holdings-Reporting as of Trade Date
Account:6746055900-PARS/CCCSD 115P-OPEB
As of:30-Sep-2020
Asset Type Asset Name Ticker Shares/Units Price Market Value
Fixed Income CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 170,000.0000 103.826% $176,504.20
Fixed Income CITIGROUP INC 3.200%10/21/26 C133226 220,000.0000 110.310% $242,682.00
Fixed Income COMCAST CORP NEW SR 4.150%10/15/28 CCN4128 250,000.0000 120.502% $301,255.00
Fixed Income CUBESMART L P SR NT 2.000% 2/15/31 CLP2031 130,000.0000 98.669% $128,269.70
Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 155,000.0000 127.641% $197,843.55
Fixed Income CYRUSONE LP/CYRUSONE 2.150%11/01/30 CL22130 90,000.0000 97.710% $87,939.00
Fixed Income DISCOVERY COMM 3.950% 3/20/28 DC33928 200,000.0000 113.760% $227,520.00
Fixed Income DOWDUPONT INC 5.319%11/15/38 D155338 160,000.0000 126.896% $203,033.60
Fixed Income ENBRIDGE INC SR GLBL 3.125%11/15/29 E153129 220,000.0000 106.251% $233,752.20
Fixed Income ENTERPRISE PROD OPER 4.900% 5/15/46 EPO4946 150,000.0000 112.699% $169,048.50
Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 121,590.9400 105.510% $128,290.60
Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 168,537.8200 108.554% $182,954.55
Fixed Income FGLMC#130401 3.000% 1/01/30 J30401F 121,138.8900 107.712% $130,481.12
Fixed Income FGLMC#Q13204 3.000%11/01/42 Q13204F 113,599.4500 108.951% $123,767.74
Fixed Income FH LMCG08823 3.500% 7/01/48 G08823F 218,426.6400 105.367% $230,149.60
Fixed Income FHLMC G14702 2.5000%3/1/2023 G14702F 59,716.6800 104.444% $62,370.49
Fixed Income FHLMC G15252 3.000%12/01/29 G15252F 104,830.6300 107.864% $113,074.51
Fixed Income FHLMC Q38373 3.500% 1/01/46 Q38373F 107,023.6500 108.123% $115,717.18
Fixed Income FHLMCSB8006 3.000% 9/01/34 SB8006A 195,090.1400 104.939% $204,725.64
Fixed Income FHLMCV605863.0000%8/1/2029 V60586F 120,017.4600 107.064% $128,495.49
Fixed Income FNMA#MA3238 3.500%11/01/47 MA3238A 112,545.0800 105.728% $118,991.66
Fixed Income FN MA AL8174 3.5000%2/1/2046 AL8174A 244,563.0800 109.170% $266,989.51
Fixed Income F N MA A L8924 3.0000%12/1/2030 AL8924A 186,934.5000 106.047% $198,238.43
Fixed Income F N MA A L9376 3.0000%8/1/2031 AL9376A 102,390.3000 107.045% $109,603.70
Fixed Income FN MAAL9861 3.000% 8/01/30 AL9861A 278,678.7200 104.997% $292,604.30
Fixed Income FN MAAS4916 3.000% 5/01/30 AS4916A 208,007.2500 105.011% $218,430.49
Fixed Income FNMA AS7729 3.0000%8/1/2046 AS7729A 182,481.3200 107.182% $195,587.13
Fixed Income FNMA AT0293 3.0000%3/1/2043 AT0293A 115,139.1800 108.925% $125,415.35
Fixed Income FNMA BC1486 3.0000%8/1/2046 BC1486A 168,126.7500 106.908% $179,740.95
Fixed Income FNMA BM4913 3.000% 5/01/46 BM4913A 104,035.2800 106.514% $110,812.14
Fixed Income FNMA CA6348 2.500% 7/01/50 CA6348A 296,748.2300 105.211% $312,211.78
Fixed Income FNMA FM3494 2.500% 4/01/48 FM3494A 226,064.4600 105.412% $238,299.07
JHIGHMARK PARS: Central Contra Costa Sanitary District
15
CAPITAL MANAGEMENT
Holdings-Reporting as of Trade Date
Account:6746055900-PARS/CCCSD 115P-OPEB
As of:30-Sep-2020
Asset Type Asset Name Ticker Shares/Units Price Market Value
Fixed Income FNMA MA2730 2.500% 8/01/46 MA2730A 526,405.5000 105.688% $556,347.44
Fixed Income FN MA MA2779 2.0000%10/1/2026 MA2779A 97,212.4900 103.962% $101,064.05
Fixed Income FNMA MA2895 3.000% 2/01/47 MA2895A 129,230.9200 105.116% $135,842.37
Fixed Income FNMA MA3210 3.500%11/01/47 MA3210A 108,256.1500 105.835% $114,572.90
Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 73,350.6700 105.933% $77,702.57
Fixed Income FNMA MA3332 3.500% 3/01/48 MA3332A 150,994.7800 105.723% $159,636.21
Fixed Income FNMA MA3489 3.500%10/01/33 MA3489A 81,401.5000 105.793% $86,117.09
Fixed Income FNMA MA3536 4.000%12/01/48 MA3536A 45,828.1000 106.561% $48,834.88
Fixed Income FNMA MA4123 2.000% 9/01/35 MA4123A 298,093.2800 104.030% $310,106.44
Fixed Income FORD CR AUTO OWN TR 0.000% 3/15/24 FCA0024 150,000.0000 102.253% $153,379.50
Fixed Income GENERALMTRS FINLCO 4.000%10/06/26 GMF4026 160,000.0000 107.156% $171,449.60
Fixed Income GMALT 2018-3 A4 3.300% 7/20/22 G2A3322 200,000.0000 100.562% $201,124.00
Fixed Income GOLDMAN SACHS BIDS 3.691% 6/05/28 GSB3628 200,000.0000 112.093% $224,186.00
Fixed Income HEWLETT PACKARD 4.650%10/01/24 HP44624 225,000.0000 113.080% $254,430.00
Fixed Income HONDA AUTO RECV 20183.160% 8/19/24 HAR3124 150,000.0000 102.927% $154,390.50
Fixed Income HUNTINGTON BANCSHARE 2.550% 2/04/30 HB22530 225,000.0000 104.743% $235,671.75
Fixed Income HYUNDAI AUTO LEASE 1.900% 5/15/22 HAL1922 366,289.9000 100.713% $368,901.55
Fixed Income LOS ANGELES REV BIDS 6.574% 7/01/45 LAR6545 100,000.0000 170.875% $170,875.00
Fixed Income NAR 2016-C A4 1.380% 1/17/23 NAR1323 21,858.7000 100.047% $21,868.97
Fixed Income NAROT2017-B A3 1.750%10/15/21 N2A0121 39,020.0600 100.164% $39,084.05
Fixed Income NORFOLK SOUTHERN COR 4.150% 2/28/48 NSC4148 100,000.0000 123.329% $123,329.00
Fixed Income PACIFIC LIFECORP 3.350% 9/15/50 PL33350 80,000.0000 101.031% $80,824.80
Fixed Income SUMITOMO MITSUI 1.050% 9/12/25 SM11025 250,000.0000 100.409% $251,022.50
Fixed Income TACT 2017-D A3 1.930% 1/18/22 T2A2222 39,533.5300 100.400% $39,691.66
Fixed Income TAOT2019-CA3MTGE 1.910% 9/15/23 T2A1923 205,000.0000 101.880% $208,854.00
Fixed Income TIME WARNER CABLE NT 7.300% 7/01/38 TWC7338 125,000.0000 141.531% $176,913.75
Fixed Income TOYOTA AUTO RECV OWN 2.520% 5/15/23 TAR2523 95,000.0000 102.274% $97,160.30
Fixed Income UNITEDAIR 14-2A 3.750% 9/03/26 UA13726 107,715.1700 94.526% $101,818.84
Fixed Income UNITED STATES TREAS 0.625% 5/15/30 UST0630 450,000.0000 99.703% $448,663.50
Fixed Income UNTDAIR 2013-1 4.300% 8/15/25 UA24325 175,701.2900 96.493% $169,539.45
Fixed Income US TREAS BIDS 3.625% 8/15/43 UTB3643 750,000.0000 146.059% $1,095,442.50
Fixed Income USTREAS NTS 1.625% 4/30/23 UTN1623 520,000.0000 103.820% $539,864.00
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
16
CAPITAL MANAGEMENT
Holdings-Reporting as of Trade Date
Account:6746055900-PARS/CCCSD 115P-OPEB
As of:30-Sep-2020
Asset Type Asset Name Ticker Shares/Units Price Market Value
Fixed Income USTREAS NTS 2.375% 5/15/27 UTN2327 1,170,000.0000 112.746% $1,319,128.20
Fixed Income VERIZON OWNER TR 1.940% 4/20/24 VOT0024 400,000.0000 102.353% $409,412.00
Fixed Income WILLIAMS PRTNRS NTS 3.600% 3/15/22 WPN3622 180,000.0000 103.383% $186,089.40
Fixed Income WORLD OMNI AUTO 2.500% 4/17/23 WOA2523 276,542.5600 101.269% $280,051.89
Fixed Income WORLD OMNI AUTO RECV 3.020% 4/15/22 WOA3022 5,379.5300 100.138% $5,386.95
Fixed Income JPMORGAN CHASE&CO 3.200% 6/15/26 JPM26B 305,000.0000 111.000% $338,550.00
Fixed Income ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 80,000.0000 107.220% $85,776.00
Fixed Income AMERICAN INTLGROUP 3.900% 4/01/26 AIG26 205,000.0000 114.031% $233,763.55
Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 120,000.0000 130.813% $156,975.60
Fixed Income EL PASO ENERGY CORP 7.800% 8/01/31 EP31 115,000.0000 138.378% $159,134.70
Fixed Income UNITEDHEALTH GROUP 12.750% 5/15/40 230,000.0000 105.664% $243,027.20
Fixed Income US TREAS NTS 1.625% 8/15/29 960,000.0000 108.906% $1,045,497.60
Fixed Income VERIZON COMMUNICATIO 5.250% 3/16/37 190,000.0000 138.486% $263,123.40
Cash&Cash Equivalents CASH 155,544.7600 $1.0000 $155,544.76
Cash&Cash Equivalents FIRSTAMERN GOVTOBLIG FD CLZ#3676 FGZXX 901,434.4900 $1.0000 $901,434.49
SUBTOTALS
Cash&Cash Equivalents $1,056,979.25
Equities $36,443,716.82
Fixed Income $35,126,555.71
TOTALS $72,627,251.78
JHIGHMARK PARS: Central Contra Costa Sanitary District
17
CAPITAL MANAGEMENT
Investment Summary Since Inception _
CCC.7D — Pension Beginning Value $3,359,081.81
Asset Allocation Contributions 5,919,207.95
Withdrawals -87,333.64
Total Assets: $10,579,030 Gain (Loss) 751,723.94
Interest and Dividends 636,349.85
Period Ending: 9-30-2020 Net Accrued Income 30,241.57
3Q20 Return: 2.84% Ending Market Value $10,609,271.48-
1 Year Return: 7.27%
Inception-to-Date Return: 5.79% Cash
$79,608 Eq u ity
Inception Date:9-1-2017 0 75% $3,209,483
Plan target rate of return: 5.82% 30.340/,
Fixed Income
$7,289,939
68.910/,
* Ending Market Value differs from total market value on page 13 due to differences in reporting methodology. The above ending market value includes
cruals.
a
HIGHMARK® PARS: Central Contra Costa Sanitary District
18
CAPITAL MANAGEMENT
Asset Allocation - Central Contra Costa Sanitary District Pension
As of Third Quarter 2020
Current Asset Allocation Investment Vehicle
Equity 30.34% Range: 20%-40% 3,209,483
Large Cap Core 6.01% IVV iShares Core S&P 500 636,162
4.08% VGIAX Vanguard Growth & Income Adm 431,210
Large Cap Value 3.08% IVE iShares S&P 500 Value 325,318
Large Cap Growth 3.02% IVW iShares S&P 500 Growth 319,121
Mid Cap Core 2.75% IWR iShares Russell Mid-Cap ETF 290,572
Small Cap Value 2.31% UBVFX Undiscovered Managers Behavioral Val R6 243,910
Small Cap Growth 2.29% RSEJX Victory RS Small Cap Growth R6 242,689
International Core 1.50% VEA Vanguard FTSE Developed Markets ETF 158,201
International Value 1.21% DODFX Dodge & Cox International Stock Fund 128,177
International Growth 1.32% MGRDX MFS® International Growth Fund Class R6 139,527
Emerging Markets 2.04% HHHFX Hartford Schroders Emerging Mkts Eq F 215,635
Real Estate 0.75% VNQ Vanguard Real Estate ETF 78,960
Fixed Income 68.91% Range: 50%-80% 7,289,939
46.32% Core Fixed Income Portfolio 4,900,559
Short-Term 4.00% VFSUX Vanguard Short-Term Investment-Grade Adm 422,966
Intermediate-Term 9.31% PTTRX PIMCO Total Return Instl Fund 984,613
9.28% PTRQX Prudential Total Return Bond Q 981,801
Cash 0.75% Range:0%-20% 79,608
0.75% FGZXX First American Government Oblig Z 79,608
TOTAL 100.00% $10,579,030
JHIGHMARK PARS: Central Contra Costa Sanitary District
19
CAPITAL MANAGEMENT
Selected Period Performance
PARS/CCCSD 115P - PENSION
Account 6746055901
Period Ending: 9/30/2020
Year Inception
to Date to Date
3 Months (9 Months) 1 Year 3 Years 09/01/2017
Cash Equivalents .01 .35 .76 1.46 1.44
Lipper Money Market Funds Index .01 .40 .78 1.41 1.39
Fixed Income ex Funds .73 6.38 6.95 5.30 5.06
Total Fixed Income .98 6.40 6.83 5.27 4.99
BBG Barclays US Aggregate Bd Index .62 6.98 4.93
Total Equities 7.74 -.37 8.14 7.53 8.04
Large Cap Funds 8.57 4.12 13.40 11.38 11.72
S&P 500 Composite Index 8.93 5.57 15.15 12.28 12.67
Mid Cap Funds 7.38 -2.53 4.25 7.07 7.59
Russell Midcap Index 7.46 -2.35 4.55 7.13 7.89
Small Cap Funds 5.14 -9.17 .20 3.56 4.92
Russell 2000 Index 4.93 -8.69 .39 1.77 3.74
International Equities 7.09 -4.17 5.51 1.72 2.22
MSCI EAFE Index 4.80 -7.09 .49 .62 1.41
MSCI EM Free Index 9.56 -1.16 10.54 2.42 2.22
Real Estate- ETFs / Sctr Fds 1.28 -15.15 -14.67 2.09 1.98
Wilshire REIT Index 1.25 -16.74 -17.69 .45 .41
Total Managed Portfolio 2.84 4.41 7.27 5.89 5.79
CCCSD Pension 2.68 4.26 5.78 5.80
Performance Inception: 09/2017
CCCSD Pension Benchmark consists of: 15.5%of S&P 500,3% Russell Midcap,4.5% Russell 2000, 1%Wilshire REIT,2%MSCI EM Free,4% MSCI EAFE,49.25%BC Aggregate, 14%ML 1-3 Yr
US Corp/Govt, 1.75% ML US High Yield Mstr II, and 5% Citigroup 1 Month T-Bill Indexes. Returns are gross-of-fees unless otherwise noted. Returns for periods over one year are annualized.The
information presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank
guarantee, and may lose value.
HIGHMARK® PARS: Central Contra Costa Sanitary District
20
CAPITAL MANAGEMENT
Fixed Income Portfolio: Statistics
As of Third Quarter 2020
CCCSD BC Aggregate Bond
Pension Index
Weighted Average Maturity 7.90 years 8.31 years
Effective Duration 6.01 years 6.22 years
Average Coupon 3.08% 2.93%
Yield to Maturity 1.40% 1.22%
Average Quality Aa3 Aa2
JH IGHMARK0 PARS: Central Contra Costa Sanitary District
21
CAPITAL MANAGEMENT Source: BondEdge
Fixed Income Portfolio: Sectors
As of Third Quarter 2020
45.0%
40.0% 1
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
Cash Treasury Agency Corp Non-Corp MBS CMO ABS CMBS
■CCCSD Pension 0.0% 20.8% 0.0% 40.7% 0.0% 26.5% 0.0% 12.1% 0.0%
■Barclays U.S.Aggregate Bond Index 0.0% 37.6% 1.6% 27.6% 4.6% 26.0% 0.0% 0.3% 2.3%
JHIGHMARK PARS: Central Contra Costa Sanitary District
22
CAPITAL MANAGEMENT Source: BondEdge
Fixed Income Portfolio: Effective Duration and Effective Maturity
As of Third Quarter 2020
Effective Duration Effective Maturity
35%
40%
35% 30%
30% 25%
25%
20%
20%
15%
15%
10% 10%
5% 5%
0% 7-10 10+ 0%
0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. Yrs. Yrs. 0-1 Yr. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 Yrs. 10+Yrs.
■CCCSD Pension 8.54% 31.92% 11.17% 16.55% 14.96% 16.86% •CCCSD Pension 6.77% 17.01% 15.45% 24.85% 15.45% 20.47%
BC Aggregate Bond Index 3.40% 36.18% 23.04% 10.98% 7.50% 18.89% BC Aggregate Bond Index 0.36% 22.14% 31.44% 16.36% 9.80% 19.89%
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
23
CAPITAL MANAGEMENT Source: BondEdge
Holdings-Reporting as of Trade Date
Account:6746055901-PARS/CCCSD 115P-PENSION
As of:30-Sep-2020
Asset Type Asset Name Ticker Market Value Shares/Units Price
Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX $128,177.21 3,590.3980 $35.7000
Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX $215,634.73 12,751.9060 $16.9100
Equities ISHARES RUSSELL MIDCAP ETF IWR $290,572.32 5,064.0000 $57.3800
Equities ISHARES S&P 500 GROWTH ETF IVW $319,121.48 1,381.0000 $231.0800
Equities ISHARES S&P 500 VALUE ETF IVE $325,317.85 2,893.0000 $112.4500
Equities ISHARES TR CORE S&P500 ETF IVV $636,161.58 1,893.0000 $336.0600
Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX $139,527.24 3,623.1430 $38.5100
Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX $243,909.89 5,376.0170 $45.3700
Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA $158,201.20 3,868.0000 $40.9000
Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX $431,210.07 4,877.9420 $88.4000
Equities VANGUARD REAL ESTATE ETF VNQ $78,960.00 1,000.0000 $78.9600
Equities VICTORY RS SM CAP GROW#279 RSEJX $242,688.97 2,647.1310 $91.6800
Fixed Income PIMCO TOTAL RETURN INSTL #35 PTTRX $984,612.79 90,083.5120 $10.9300
Fixed Income PRUDENTIAL TOTAL RTRN BD CLQ PTRQX $981,801.39 66,025.6480 $14.8700
Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX $422,966.36 38,521.5260 $10.9800
Fixed Income CC CCIT 2014-A1 2.880% 1/23/23 CC22823A $77,625.24 77,000.0000 100.812%
Fixed Income HAROT 2017-4 A3 2.050%11/22/21 H2A2121A $16,027.70 15,971.0000 100.355%
Fixed Income UNITED STATES TREAS 2.750% 6/30/23 UST0023B $5,339.45 5,000.0000 106.789%
Fixed Income WELLS FARGO&CO NEW 3.000%10/23/26 WFC3026A $87,447.20 80,000.0000 109.309%
Fixed Income ABBVIE INC 3.200%11/06/22 A133222 $42,127.20 40,000.0000 105.318%
Fixed Income AMERICAN EXPRESS CO 3.000%10/30/24 AEC3024 $43,397.60 40,000.0000 108.494%
Fixed Income ANHEUSER-BUSCH INBEV 4.900% 1/23/31 A144919 $56,612.25 45,000.0000 125.805%
Fixed Income AT&T INC GLBL NT 3.500% 6/01/41 AIG3541 $63,039.60 60,000.0000 105.066%
Fixed Income BANK OF AMERICA CORP 3.194% 7/23/30 BOA3130 $66,010.20 60,000.0000 110.017%
Fixed Income BB&T CORP SR MTN 2.850%10/26/24 BCS2824 $37,927.75 35,000.0000 108.365%
Fixed Income BERKSHIRE HATHAWAY 4.250% 1/15/49 BH44249 $39,037.20 30,000.0000 130.124%
Fixed Income BK OF MONTREAL MTN 2.350% 9/11/22 BOM2322 $31,186.20 30,000.0000 103.954%
Fixed Income BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 $41,386.40 40,000.0000 103.466%
Fixed Income BP CAPITAL MARKETS 3.796% 9/21/25 BCM3725 $33,815.10 30,000.0000 112.717%
Fixed Income BRISTOL-MYERS SQUIBB 3.250% 2/20/23 BS33223 $37,226.70 35,000.0000 106.362%
Fixed Income BROWN &BROWN INC SR 2.375% 3/15/31 BBI2331 $25,153.75 25,000.0000 100.615%
Fixed Income CAPITAL ONE NTS 3.800% 1/31/28 CON3828 $78,120.70 70,000.0000 111.601%
JHIGHMARK PARS: Central Contra Costa Sanitary District
24
CAPITAL MANAGEMENT
Holdings-Reporting as of Trade Date
Account:6746055901-PARS/CCCSD 115P-PENSION
As of:30-Sep-2020
Asset Type Asset Name Ticker Market Value Shares/Units Price
Fixed Income CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 $31,147.80 30,000.0000 103.826%
Fixed Income CITIGROUP INC 3.200%10/21/26 C133226 $49,639.50 45,000.0000 110.310%
Fixed Income COMCAST CORP NEW SR 4.150%10/15/28 CCN4128 $60,251.00 50,000.0000 120.502%
Fixed Income CUBESMART L P SR NT 2.000% 2/15/31 CLP2031 $29,600.70 30,000.0000 98.669%
Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 $38,292.30 30,000.0000 127.641%
Fixed Income CYRUSONE LP/CYRUSONE 2.150%11/01/30 CL22130 $24,427.50 25,000.0000 97.710%
Fixed Income DOWDUPONT INC 5.319%11/15/38 D155338 $31,724.00 25,000.0000 126.896%
Fixed Income ENBRIDGE INC SR GLBL3.125%11/15/29 EIS3129 $47,812.95 45,000.0000 106.251%
Fixed Income ENTERPRISE PROD OPER 4.900% 5/15/46 EPO4946 $45,079.60 40,000.0000 112.699%
Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F $21,381.76 20,265.1500 105.510%
Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F $31,543.87 29,058.2300 108.554%
Fixed Income FGLMC#130401 3.000% 1/01/30 J30401F $57,411.71 53,301.1300 107.712%
Fixed Income FGLMC G08701 3.000% 4/01/46 G08701F $20,462.78 19,461.3000 105.146%
Fixed Income FHLMC G08741 3.000%12/01/46 G08741F $97,119.36 92,212.7200 105.321%
Fixed Income FHLMC G08823 3.500% 7/01/48 G08823F $54,756.76 51,967.6600 105.367%
Fixed Income FHLMC G15252 3.000%12/01/29 G15252F $25,788.93 23,908.7500 107.864%
Fixed Income FHLMC Q38373 3.500% 1/01/46 Q38373F $28,929.30 26,755.9200 108.123%
Fixed Income FHLMCSB8006 3.000% 9/01/34 SB8006A $34,120.93 32,515.0100 104.939%
Fixed Income FNMA#AB3678 3.500%10/01/41 AB3678A $36,888.61 33,139.5300 111.313%
Fixed Income FNMA#MA3238 3.500%11/01/47 MA3238A $89,243.74 84,408.8000 105.728%
Fixed Income FNMA#MA3276 3.500% 1/01/48 MA3276A $17,599.29 16,631.1900 105.821%
Fixed Income F N MA A L9376 3.0000%8/1/2031 AL9376A $24,909.93 23,270.5200 107.045%
Fixed Income FN MAAS4916 3.000% 5/01/30 AS4916A $32,764.58 31,201.0900 105.011%
Fixed Income FNMA A57729 3.0000%8/1/2046 AS7729A $33,721.92 31,462.3000 107.182%
Fixed Income FN MAAS7817 2.500% 8/01/46 AS7817A $106,091.51 100,219.6400 105.859%
Fixed Income F N MA BC1486 3.0000%8/1/2046 BC1486A $34,565.56 32,332.0600 106.908%
Fixed Income FNMA BM4913 3.000% 5/01/46 BM4913A $31,660.59 29,724.3500 106.514%
Fixed Income FN MACA6348 2.500% 7/01/50 CA6348A $104,070.60 98,916.0800 105.211%
Fixed Income FNMA MA2730 2.500% 8/01/46 MA2730A $69,543.43 65,800.6900 105.688%
Fixed Income FN MA MA2779 2.0000%10/1/2026 MA2779A $21,502.99 20,683.5100 103.962%
Fixed Income FNMA MA2895 3.000% 2/01/47 MA2895A $20,376.36 19,384.6400 105.116%
Fixed Income FNMA MA3120 3.500% 9/01/47 MA3120A $69,145.76 65,313.8000 105.867%
JHIGHMARK PARS: Central Contra Costa Sanitary District
25
CAPITAL MANAGEMENT
Holdings-Reporting as of Trade Date
Account:6746055901-PARS/CCCSD 115P-PENSION
As of:30-Sep-2020
Asset Type Asset Name Ticker Market Value Shares/Units Price
Fixed Income FNMA MA3210 3.500%11/01/47 MA3210A $28,643.21 27,064.0200 105.835%
Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A $33,301.11 31,436.0100 105.933%
Fixed Income FNMA MA3332 3.500% 3/01/48 MA3332A $23,649.81 22,369.6000 105.723%
Fixed Income FNMA MA3489 3.500%10/01/33 MA3489A $15,863.67 14,995.0100 105.793%
Fixed Income FNMA MA3536 4.000%12/01/48 MA3536A $31,848.82 29,887.8800 106.561%
Fixed Income FNMA MA4123 2.000% 9/01/35 MA4123A $103,368.82 99,364.4300 104.030%
Fixed Income FORD CR AUTO OWN TR 0.000% 3/15/24 FCA0024 $51,126.50 50,000.0000 102.253%
Fixed Income FORDO 2019-B A3 2.230%10/15/23 F2A2223 $51,022.50 50,000.0000 102.045%
Fixed Income GENERAL MTRS CO 5.000%10/01/28 GMC5028 $28,111.50 25,000.0000 112.446%
Fixed Income GMALT 2018-3 A4 3.300% 7/20/22 G2A3322 $50,281.00 50,000.0000 100.562%
Fixed Income GMCAR 2019-1 A3 2.970%11/16/23 G2A2923 $44,208.57 43,351.9400 101.976%
Fixed Income GOLDMAN SACHS BIDS 3.691% 6/05/28 GSB3628 $67,255.80 60,000.0000 112.093%
Fixed Income HAIR 2017-4A-4 2.210% 3/21/24 H222224 $25,262.00 25,000.0000 101.048%
Fixed Income HAROT 2019-1 A3 2.830% 3/20/23 H2A2823 $51,099.00 50,000.0000 102.198%
Fixed Income HEWLETT PACKARD 4.650%10/01/24 HP44624 $67,848.00 60,000.0000 113.080%
Fixed Income HUNTINGTON BANCSHARE 2.550% 2/04/30 HB22530 $52,371.50 50,000.0000 104.743%
Fixed Income HYUNDAI AUTO LEASE 1.900% 5/15/22 HAL1922 $46,112.70 45,786.2400 100.713%
Fixed Income KIMCO REALTY CORP 3.800% 4/01/27 KRC3827 $54,552.00 50,000.0000 109.104%
Fixed Income MAGELLAN MIDSTREAM 5.000% 3/01/26 MM55026 $29,144.50 25,000.0000 116.578%
Fixed Income NAR 2016-C A4 1.380% 1/17/23 NAR1323 $9,476.57 9,472.1200 100.047%
Fixed Income NORFOLK SOUTHERN COR 4.150% 2/28/48 NSC4148 $49,331.60 40,000.0000 123.329%
Fixed Income PACIFIC LIFECORP 3.350% 9/15/50 PL33350 $20,206.20 20,000.0000 101.031%
Fixed Income REPUBLIC SVCS NTS 3.375%11/15/27 RSN3327 $45,473.20 40,000.0000 113.683%
Fixed Income TAOT 2017-D A3 1.930% 1/18/22 T2A2222 $6,615.30 6,588.9400 100.400%
Fixed Income TIME WARNER CABLE NT 7.300% 7/01/38 TWC7338 $42,459.30 30,000.0000 141.531%
Fixed Income TOYOTA AUTO RECV OWN 2.520% 5/15/23 TAR2523 $56,250.70 55,000.0000 102.274%
Fixed Income UNITEDAIR 4.150% 8/25/31 UA44131 $30,227.30 30,299.7200 99.761%
Fixed Income UNITED STATES TREAS 0.625% 5/15/30 UST0630 $124,628.75 125,000.0000 99.703%
Fixed Income UNTDAIR 2013-1 4.300% 8/15/25 UA24325 $44,080.25 45,682.3300 96.493%
Fixed Income US TREAS BDS 3.625% 8/15/43 UTB3643 $335,935.70 230,000.0000 146.059%
Fixed Income US TREAS NTS 1.625% 4/30/23 UTN1623 $51,910.00 50,000.0000 103.820%
Fixed Income US TREAS NTS 2.375% 5/15/27 UTN2327 $236,766.60 210,000.0000 112.746%
JHIGHMARK 0 PARS: Central Contra Costa Sanitary District
26
CAPITAL MANAGEMENT
Holdings-Reporting as of Trade Date
Account:6746055901-PARS/CCCSD 115P-PENSION
As of:30-Sep-2020
Asset Type Asset Name Ticker Market Value Shares/Units Price
Fixed Income VERIZON OWNER TR 1.940% 4/20/24 VOT0024 $102,353.00 100,000.0000 102.353%
Fixed Income WALGREEN CO SR NT 3.100% 9/15/22 WCS3122 $31,407.60 30,000.0000 104.692%
Fixed Income WILLIAMS PRTNRS NTS 3.600% 3/15/22 WPN3622 $46,522.35 45,000.0000 103.383%
Fixed Income WORLD OMNI AUTO RECV 3.020% 4/15/22 WOA3022 $6,630.09 6,620.9500 100.138%
Fixed Income JPMORGA N CHASE&CO 3.200% 6/15/26 JPM26B $66,600.00 60,000.0000 111.000%
Fixed Income ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B $21,444.00 20,000.0000 107.220%
Fixed Income AMERICAN INTLGROUP 3.900% 4/01/26 AIG26 $45,612.40 40,000.0000 114.031%
Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 $58,865.85 45,000.0000 130.813%
Fixed Income EL PASO ENERGY CORP 7.800% 8/01/31 EP31 $41,513.40 30,000.0000 138.378%
Fixed Income UNITEDHEALTH GROUP 12.750% 5/15/40 $52,832.00 50,000.0000 105.664%
Fixed Income US TREAS NTS 1.625% 8/15/29 $266,819.70 245,000.0000 108.906%
Fixed Income VERIZON COMMUNICATIO 5.250% 3/16/37 $48,470.10 35,000.0000 138.486%
Cash&Cash Equivalents CASH ($2,717.45) (2,717.4500) $1.0000
Cash&Cash Equivalents FIRSTAMERN GOVTOBLIG FDCLZ#3676 FGZXX $82,325.45 82,325.4500 $1.0000
SUBTOTALS
Cash&Cash Equivalents $79,608.00
Equities $3,209,482.54
Fixed Income $7,289,939.37
TOTALS $10,579,029.91
JHIGHMARK PARS: Central Contra Costa Sanitary District
27
CAPITAL MANAGEMENT
CENTRAL CONTRA COSTA SANITARY DISTRICT
For Period Ending September 30, 2020
LARGE CAP EQUITY FUNDS
3-Month YTD 1-Year 3-Year 5-Year 10-Year
Fund Name nceptior Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank
iShares Core S&P 500 ETF (4/17) 8.92 37 5.56 29 15.12 26 12.25 19 14.11 12 13.68 11
iShares S&P 500 Value ETF (4/17) 4.76 53 -11.53 55 -2.79 37 4.03 35 8.67 27 10.17 28
Vanguard Growth & Income Adm (12/16) 8.56 49 4.97 41 14.19 39 11.50 37 13.42 32 13.73 9
iShares S&P 500 Growth ETF (4/17) 11.70 41 20.42 49 30.38 54 18.87 46 18.16 40 16.32 29
S&P 500 TR USD 8.93 -- 5.57 -- 15.15 -- 12.28 -- 14.15 -- 13.74 --
MID CAP EQUITY
iShares Russell Mid-Cap ETF (3/16) 7.41 27 -2.45 20 4.41 21 6.99 21 9.97 19 11.58 14
(Russell Mid Cap TR USD 7.46 -- -2.35 -- 4.55 -- 7.13 -- 10.13 -- 11.76 --
SMALL CAP EQUITY FUNDS
Undiscovered Managers Behavioral Val R6 (9/16) 0.91 75 -27.67 90 -22.40 93 -7.22 73 1.83 64 8.14 15
Russell 2000 Value TR USD 2.56 -- -21.54 -- -14.88 -- -5.13 -- 4.11 -- 7.09 --
Victory RS Small Cap Growth R6 (2/19) 9.51 36 12.85 34 28.04 28 14.93 30 14.90 31 15.35 13
Russell 2000 Growth TR USD 7.16 -- 3.88 -- 15.71 -- 8.18 -- 11.42 -- 12.34 --
IIMII IIM INTERNATIONAL EQUITY FUNDS
Dodge & Cox International Stock 0.39 91 -18.12 75 -9.43 67 -5.85 82 2.21 54 3.13 32
Vanguard FTSE Developed Markets ETF (9/18) 5.66 50 -5.69 46 2.18 44 0.94 45 5.81 35 4.97 26
MFS International Growth R6 9.03 50 3.80 62 13.18 63 8.47 34 11.26 23 7.64 27
MSCI EAFE NR USD 4.80 -- -7.09 -- 0.49 -- 0.62 -- 5.26 -- 4.62 --
Hartford Schroders Emerging Mkts Eq F 11.25 21 1.99 29 13.54 29 4.13 23 10.56 23 3.79 25
MSCI EM NR USD 9.56 -- -1.16 -- 10.54 -- 2.42 -- 8.97 -- 2.50
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 PARS: Central Contra Costa Sanitary District
28
CAPITAL MANAGEMENT
CENTRAL CONTRA COSTA SANITARY DISTRICT
For Period Ending September 30, 2020
REIT EQUITY FUNDS
3-Month YTD 1-Year 3-Year 5-Year 10-Year
Fund Name nceptior Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank
Vanguard Real Estate ETF (4/17) 1.31 66 -12.79 39 -12.26 34 2.34 44 5.21 32 8.49 39
Wilshire REIT Index 1.25 -- -16.74 -- -17.69 -- 0.45 -- 3.65 -- -17.30 --
- - - - -
PIMCO Total Return Instl 1.49 56 7.74 16 7.42 33 5.21 35 4.74 31 3.98 50
PGIM Total Return Bond R6 (5/16) 1.78 33 5.59 65 5.96 63 5.64 16 5.30 9 5.06 7
Vanguard Short-Term Investment-Grade Adm 0.93 41 4.23 12 4.89 12 3.64 8 3.13 10 2.65 15
BBgBarc US Agg Bond TR USD 0.62 -- 6.79 -- 6.98 -- 5.24 -- 4.18 -- 3.64
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 PARS: Central Contra Costa Sanitary District
29
CAPITAL MANAGEMENT