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HomeMy WebLinkAbout06.b. Review Highmark Other Post-Employment Benefits (OPEB) and Pension Prefunding Sub-trust Reports for the Fourth Quarter of calendar year 2020 Page 1 of 30 Item 6.b. CENTRAL SAN February 23, 2021 TO: FINANCE COMMITTEE FROM: KEVIN MIZUNO, FINANCE MANAGER REVIEWED BY: PHILIP R. LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION ROGER S. BAILEY, GENERAL MANAGER SUBJECT: REVIEW HIGHMARK OTHER POST-EMPLOYMENT BENEFITS (OPEB) AND PENSION PREFUNDING SUB-TRUST REPORTS FOR THE FOURTH 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 December 31, 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 2). In summary, this quarter's report reflects positive returns of 9.14% and 6.03% for the Central San's OPEB and Pension Pre-funding sub- trusts, respectively. These positive 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. Ultimately, the calendar year closed out with strong returns of 12.54% and 10.71% for the OPEB and Pension Pre-funding trusts respectively, both exceeding the long-term target returns for each fund of 6.25% for the OPEB trust and 5.82% for the Pension Pre-funding trust. Strategic Plan re-In GOAL THREE: Fiscal Responsibility Strategy 1—Maintain financial stability and sustainability, Strategy 2—Ensure integrity and transparency in financial management ATTACHMENTS: 1. Overview of Entities Administering Trusts 2. Highmark Overview of Fourth Quarter 2020 3. PARS Investment Report Fourth Quarter 2020 February 23, 2021 Regular FINANCE Committee Meeting Agenda Packet- Page 147 of 178 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 rRusrEosWNVSOIIjEsrJS21 Regular FINANCE Committee Meeting Agenda Packet- Page 148 of 178 Page 3 of 30 Attachment 2 JHIGHMARK@ CAPITAL MANAGEMENT January 21, 2021 Phil Leiber Director of Finance and Administration Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553-4392 RE: 4Q Quarter 2020 OPEB/Pension Report Dear Mr. Leiber, In keeping with the frenzied cadence of news flow in 2020, an eventful fourth quarter capped off a rollercoaster journey of a year that no one saw coming. A resurgence of COVID-19 cases in the U.S. and Europe was outshined by welcome news on vaccine approvals, a conclusion to the U.S. Presidential election, an additional round of fiscal stimulus and even a Brexit deal for good measure. Aside from the unfortunate spike in cases, the necessary ingredients for the global stock market to continue its monumental comeback were delivered as hoped. On balance, the good news also put upward pressure on longer-term interest rates as investors recalibrated for higher inflation and growth expectations. With the full year now in the history books, there are certainly many reasons why 2020 will not be associated with fond memories but, fortunately, full- year investment returns won't be one of them. Most global equity and credit markets fully recovered losses from the February/March downturn, but many managed to post strong positive returns for the year—an improbable feat given the economic challenges created by the severely constraining countermeasures implemented to combat the spread of the virus. Often over the last three months, clients will ask us, "How can markets recover and continue to rise in the face of the pandemic?" While there is not one specific answer, the aggressive and enormous central bank interest rate and asset purchasing programs developed, have eased credit conditions and have allowed us to maintain an economy on life support. The result has been a boost to asset prices, and a strong push on yields to near record lows. 2020 Equity Market Performance 25.0 20.5 20.0 14.9 18.1 19.2 16.0 19.7 14.7 18.4 18.3 16.3 15.0 12.1 - 105.0 .0 logo � 0.0 d IX -5.0 -10.0 -15.0 -20.0 -25.0 -19.6 _21.4 -22.8-23.6 -30.0 Q1 Q2 Q3 Q4 FY 2020 ❑S&P 500 oMSCI EAFE MSCI Emerging Markets 13MSCI All Country World Source: Morningstar Direct Former Federal Reserve Chairman Ben Bernanke best explains the theory and desired result of easy monetary policy through lower interest rates and quantitative easing, or central bank asset purchases, as follows: "Easier financial conditions will promote economic growth. For example, lower mortgage rates will make housing more affordable and allow more homeowners to refinance. Lower corporate bond rates will encourage investment. And higher stock prices will boost consumer wealth and help February 23, 2021 Regular FINANCE Committee Meeting Agenda Packet- Page 149 of 178 Page 4 of 30 increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion."' Financial policies to create a "virtuous circle" also encourage income-reliant investors to invest further out on the risk/return spectrum to generate the same income today that they generated before. This is often referred to as "crowding out"where savers move from ultra-low risk assets such as money market funds or U.S. Treasuries, into something that offers higher returns, but higher risk as well. Some central banks in Europe and Asia have taken crowding out to an extreme through negative interest rate policies, creating the ultimate crowding out environment resulting in roughly$18 trillion worth of negative yielding financial assets globally. Combining this dynamic with the Fed's new policy-making mandate to keep "lower for longer" short maturity interest rates we believe the federal funds rate will likely hover near zero well into 2023. And the impact to the Plan will likely lead to lower investment returns from our fixed income investments over the next few years. Negative Yielding Debt(Trillions USD) $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 )J� .�c e� � , ed �c � e� �� eF .�r e� O ) O ) O � ) O )� O )JQ ) O )� O ) O O Source: Bloomberg, Bloomberg Barclays Global Aggregate Negative Yielding Debt Market Value USD Index Political Transition With the Democratic Party having now taken over the Senate, albeit with a razor-thin majority, changes in tax policy and regulatory oversight might well be on the table. The potential for more expansive pandemic relief measures could also lead to an uptick in inflation. But with 60 Senate votes required to override potential Republican filibusters and pass bills, attention will shift to how moderates from both parties will react to the measures brought forward by the new administration and Congress. In addition, the incoming Biden administration has begun to lay the foundation for an infrastructure bill that could help the economy heal from the pandemic. While the scope of the potential infrastructure bill is unclear today, we are hopeful that elements beyond constructing roads and bridges, such as expanding access to broadband and 5G, are part of the final package. ' Ben Bernanke,Aiding the economy:What the Fed did and why,Washington Post,November 4,2010. February 23, 2021 Regular FINANCE Committee Meeting Agenda Packet- Page 150 of 178 Page 5 of 30 The November"Blue Wave"failed to materialize to a significant level, and Republicans did well "down ticket" in both state houses and the House of Representatives, the ambitions of Democratic progressives facing re-election in upcoming mid-terms might be tempered as legislative moderation could help with their re-election. There are several areas where both parties have indicated common ground going into 2021. That said, we are expecting corporate and income taxes to increase, but perhaps not until next year. Finally, while the last several months have seen events in Washington D.C. take center stage, developments on the COVID front will still be the major driver to both economic growth and capital markets. Eagerly awaited vaccine approvals likely marked the beginning of the end of the pandemic. However, challenges still remain with respect to manufacturing, distribution, and implementation of vaccines throughout not only the United States, but the world. Plan Performance The Central Contra Costa Sanitary District OPEB Plan gained 9.14% gross of investment fees for the fourth quarter. The Plan's equity segment gained 17.32%, led by a rebound in `value' oriented indices. The Undiscovered Managers Behavioral Value Fund, representing small cap value investments, gained 43.3% in the fourth quarter, yet these gains barely brought the Fund back into positive territory for the year to date period (+3.6% 2020 calendar year return). International equities also aided returns with the Plan's allocation to emerging market equity manager Hartford Schroder (+21.37%). In general, all equity categories posted double digit returns in the quarter, with the exception of our REIT equity investments, which still posted an attractive 9.4% return. With capital markets in a `risk-on' environment, many of the trends witnessed in the third quarter, carried over into the fourth quarter. U.S. Treasury returns, as measured by the Bloomberg Barclays Treasury Index (-.8%) lagged both investment grade bonds and high-yield fixed income. The Bloomberg Barclays U.S. Corporate Bond Index returned 3.1% and the ICE BofA U.S. High Yield Master II Index returned 6.5%. Our fixed income segment gained 1.28% in the fourth quarter, vs. the benchmark target of 0.67%. All three of our investment managers registered performance that exceeded the benchmark in the quarter. Additionally, our investment returns were aided by the inclusion of the Pimco High-Yield Bond Fund, added to the Plan in December (+1.5% return in December 2020). We ended the quarter with a target asset allocation of 51% stocks, 48% bonds and 1% cash. This represents a modest 1% increase to equities compared to the positioning at the end of the third quarter. Additionally, we initiated within fixed income a 1.25% allocation to high-yield bonds. While spreads for high yield bonds are near long-term median levels, we do believe that high yield will outperform the Barclays Aggregate Index over the course of 2021, if our forecast on the recovery in the economy plays out. The Central Contra Costa Sanitary District Pension Plan returned 6.03% in the quarter, gross of investment fees, which outgained the District's Plan benchmark target of 5.4%. The target asset allocation for the pension plan for the quarter was 31% stocks, 68% bonds, and 1% cash. This represents a 0.5% increase in equities versus the end of the third quarter. Andrew Brown February 23, 2021 Regular FINANCE Committee Meeting Agenda Packet- Page 151 of 178 Attachment 3 PARS: Central Contra Costa Sanitary District OPEB and Pension Plan Fourth Quarter 2020 Presented by Andrew Brown, CFA JHIGHMARKO CAPITAL MANAGEMENT Investment Summary Since Inception_ CCC.7D — OPEB Beginning Value 566,683.26 Asset Allocation Contributions 106,760,144.26 Withdrawals -64,485,320.82 Total Assets: $79,235,014 Gain (Loss) 20,025,672.42 Interest and Dividends 16,675,795.87 Period Ending: 12-31-2020 Net Accrued Income 132,732.94 4Q20 Return: 9.14% Ending Market Value $79,367,746.98- 1 Year Return: 12.54% Inception-to-Date Return: 9.68% Cash Inception Date:4-1-2009 $874,577 1.10]0 Plan target rate of return: 6.25% Equity $40,565,283 51.200]0 I Fixed Income $37,795,153 47.70% * Ending Market Value differs from total market value on page 3 due to differences in reporting methodology. The above ending market value includes accruals. JHIGHMARK PARS: Central Contra Costa Sanitary District 2 CAPITAL MANAGEMENT Asset Allocation - Central Contra Costa Sanitary District OPEB As of Fourth Quarter 2020 Current Asset Allocation Investment Vehicle Equity 51.20% Range: 40%-60% 40,565,283 Large Cap Core 11.00% IVV iShares Core S&P 500 ETF 8,712,802 7.07% VGIAX Vanguard Growth & Income Adm 5,601,137 Large Cap Value 4.97% IVE iShares S&P 500 Value ETF 3,936,871 Large Cap Growth 5.08% IVW iShares S&P 500 Growth ETF 4,023,979 Mid Cap Core 4.80% IWR iShares Russell Mid-Cap ETF 3,799,384 Small Cap Value 3.81% UBVFX Undiscovered Managers Behavioral Val R6 3,015,886 Small Cap Growth 3.67% RSEJX Victory RS Small Cap Growth R6 2,905,793 International Core 2.53% VEA Vanguard FTSE Developed Markets ETF 2,001,279 International Value 1.49% DODFX Dodge & Cox International Stock 1,183,233 International Growth 1.54% MGRDX MFS International Growth R6 1,219,335 Emerging Markets 3.74% HHHFX Hartford Schroders Emerging Mkts Eq F 2,964,844 Real Estate 1.52% VNQ Vanguard Real Estate ETF 1,200,740 Fixed Income 47.70% Range: 40%-60% 37,795,153 27.81% Core Fixed Income Portfolio 22,036,013 Short-Term 2.24% VFSUX Vanguard Short-Term Investment-Grade Adm 1,773,054 Intermediate-Term 8.19% PTTRX PIMCO Total Return Instl 6,492,575 8.21% PTRQX PGIM Total Return Bond R6 6,502,410 High Yield 1.25% PHIYX PIMCO High Yield Instl 991,102 Cash 1.10% Range: 0%-20% 874,577 1.10% FGZXX First American Government Oblig Z 874,577 TOTAL 100.00% $79,235,014 JHIGHMARK PARS: Central Contra Costa Sanitary District 3 CAPITAL MANAGEMENT Selected Period Performance CCCSD - OPEB Period Ending: 12/31/2020 Year Inception to Date to Date 3 Months (1 Year) 1 Year 3 Years 5 Years 10 Years 04/01/2009 Cash Equivalents .01 .35 .35 1.37 1.03 .52 .49 Lipper Money Market Funds Index .40 .40 1.33 .96 .48 .42 Fixed Income ex Funds 1.15 7.63 7.63 5.59 Total Fixed Income 1.35 7.84 7.84 5.56 4.81 3.96 4.92 BBG Barclays US Aggregate Bd Index .67 7.51 5.34 4.44 3.84 4.32 Total Equities 17.32 17.20 17.20 11.66 13.33 11.17 14.46 Large Cap Funds 12.43 17.19 17.19 13.35 14.28 12.90 15.43 S&P 500 Composite Index 12.15 18.40 18.40 14.18 15.22 13.88 16.47 Mid Cap Funds 19.90 16.95 16.95 11.39 13.09 10.89 Russell Midcap Index 19.91 17.10 17.10 11.61 13.40 12.41 16.86 Small Cap Funds 33.11 21.63 21.63 12.49 14.64 13.43 17.72 Russell 2000 Index 31.37 19.96 19.96 10.25 13.26 11.20 15.59 International Equities 18.87 14.38 14.38 6.28 9.98 4.82 9.65 MSCI EAFE Index 16.05 7.82 7.82 4.28 7.45 5.51 9.23 MSCI EM Free Index 19.70 18.31 18.31 6.17 12.81 3.63 9.81 Real Estate- ETFs / Sctr Fds 9.54 -4.15 -4.15 5.33 Wilshire REIT Index 10.62 -7.90 -7.90 3.30 4.25 8.27 15.68 Total Managed Portfolio 9.14 12.54 12.54 8.73 9.06 7.58 9.68 CCCSD OPEB 8.56 12.02 12.02 8.40 8.84 7.57 9.60 Account Inception:4/2009 CCCSD OPEB Benchmark consists of: 26.5%of S&P 500,5%Russell Midcap,7.5%Russell 2000, 1.75%Wilshire REIT,3.25%MSCI EM Free,6% MSCI EAFE,33.5%BC Aggregate, 10%ML 1-3 Yr US Corp/Govt, 1.5%ML US High Yield Mstr II,and 5%Citigroup 1 Month T-Bill Indexes. Returns are gross-of-fees unless otherwise noted. Returns for periods over one year are annualized.The information presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank guarantee, and may lose value. JH IGHMARK® PARS: Central Contra Costa Sanitary District 4 CAPITAL MANAGEMENT Fixed Income Portfolio: Statistics As of Fourth Quarter 2020 CCCSD BC Aggregate Bond OPEB Index Weighted Average Maturity 7.67 years 8.14 years Effective Duration 5.96 years 6.26 years Average Coupon 2.79% 2.80% Yield to Maturity 1.22% 1.02% Average Quality Aa3 Aa2 JH IGHMARK® PARS: Central Contra Costa Sanitary District 5 CAPITAL MANAGEMENT Source: BondEdge Fixed Income Portfolio: Sectors As of Fourth Quarter 2020 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0°/0 Cash Treasury Agency Corp Non-Corp MBS CMD ABS CMBS ■CCCS❑OPER 0.0% 22.8% 0.0% 39.6% 0.8% 28.7% 0.0% 8.2% 0.0% ■Barclays U.S.Aggregate Bond Index 0.0% 37.9% 1.7% 28.0% 4.6% 25.2% 0.0% 0.3% 2.3% JHIGHMARK PARS: Central Contra Costa Sanitary District 6 CAPITAL MANAGEMENT Source: BondEdge Fixed Income Portfolio: Effective Duration and Effective Maturity As of Fourth Quarter 2020 Effective Duration Effective Maturity 30% 45°/a 40°/a 25% 35% 30% 20% 25% 15% 20% 15% 10% 10% 5% 5% 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 4.69% 37.91% 13.69% 13.13% 14.87% 15.70% ■CCCSD OPEB 4.06% 20.49% 29.43% 12.53% 16.64% 16.84% BC Aggregate Bond Index 0.28% 42.60% 19.02% 11.23% 7.52% 19.35% BC Aggregate Bond Index 0.42% 29.49% 28.47% 11.39% 10.08% 20.14% JHIGHMARK PARS: Central Contra Costa Sanitary District 7 CAPITAL MANAGEMENT Source: BondEdge Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:31-Dec-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Cash&Cash Equivalents CASH (35,189.8400) $1.0000 ($35,189.84) Cash&Cash Equivalents FI RST AMERN GOVT 0BLIG FD CL Z#3676 FGZXX 909,767.2600 $1.0000 $909,767.26 Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 27,076.2690 $43.7000 $1,183,232.96 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 145,835.9210 $20.3300 $2,964,844.27 Equities ISHARES RUSSELL MIDCAP ETF IWR 55,425.0000 $68.5500 $3,799,383.75 Equities ISHARES S&P 500 GROWTH ETF IVW 63,052.0000 $63.8200 $4,023,978.64 Equities ISHARES S&P 500 VALUE ETF IVE 30,752.0000 $128.0200 $3,936,871.04 Equities ISHARES TR CORE S&P500 ETF IVV 23,210.0000 $375.3900 $8,712,801.90 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 28,609.4620 $42.6200 $1,219,335.27 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 46,866.9210 $64.3500 $3,015,886.37 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 42,391.0000 $47.2100 $2,001,279.11 Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 59,764.5820 $93.7200 $5,601,136.63 Equities VANGUARD REAL ESTATE ETF VNQ 14,138.0000 $84.9300 $1,200,740.34 Equities VICTORY RS SM CAP GROW#279 RSEJX 28,097.0130 $103.4200 $2,905,793.08 Fixed Income PIMCO HIGH YIELD,INSTL #108 PHIYX 109,152.1900 $9.0800 $991,101.89 Fixed Income PIMCO TOTAL RETURN INSTL #35 PTTRX 612,507.0460 $10.6000 $6,492,574.69 Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 430,338.1810 $15.1100 $6,502,409.91 Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 160,748.2890 $11.0300 $1,773,053.63 Fixed Income ATHENE GLOBAL FNDNG 2.550% 6/29/25 AGF2525A 140,000.0000 105.573% $147,802.20 Fixed Income HAROT2017-4 A3 2.050% 11/22/21 H2A2121A 11,321.1600 100.122% $11,334.97 Fixed Income UNITED STATES TREA 0.00001% 10/31/25 UST0025C 215,000.0000 99.570% $214,075.50 Fixed Income UNITED STATES TREAS 0.375%11/30/25 UST0025D 380,000.0000 100.141% $380,535.80 Fixed Income WELLS FARGO&CO NEW 3.000% 10/23/26 WFC3026A 300,000.0000 110.797% $332,391.00 Fixed Income AMERICAN EXPRESS CO 3.000% 10/30/24 AEC3024 185,000.0000 109.219% $202,055.15 Fixed Income AT&T INC GLBL NT 3.500% 6/01/41 AIG3541 260,000.0000 107.810% $280,306.00 Fixed Income ATHENE GLOBAL FUNDIN 2.500% 1/14/25 AGF2525 70,000.0000 104.754% $73,327.80 Fixed Income BANK OF AMERICA CORP 3.194% 7/23/30 BOA3130 280,000.0000 112.069% $313,793.20 Fixed Income BB&T CORP SR MTN 2.850% 10/26/24 BCS2824 210,000.0000 108.214% $227,249.40 Fixed Income BERKSHIRE HATHAWAY 2.850% 10/15/50 BH22850 105,000.0000 107.097% $112,451.85 Fixed Income BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 70,000.0000 102.933% $72,053.10 JHIGHMARK PARS: Central Contra Costa Sanitary District 8 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:31-Dec-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income BOEING CO 5.040% 5/01/27 BC55027 100,000.0000 116.907% $116,907.00 Fixed Income BP CAPITAL MARKETS 3.796% 9/21/25 BCM3725 100,000.0000 113.396% $113,396.00 Fixed Income BRISTOL-MYERS SQUIBB 3.250% 2/20/23 BS33223 175,000.0000 105.199% $184,098.25 Fixed Income BROWN &BROWN INC SR 2.375% 3/15/31 BB12331 80,000.0000 104.661% $83,728.80 Fixed Income CAPITAL ONE CC TR 1.720% 8/15/24 C000024 250,000.0000 102.427% $256,067.50 Fixed Income CAPITAL ONE NTS 3.800% 1/31/28 CON3828 250,000.0000 115.240% $288,100.00 Fixed Income CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 170,000.0000 103.390% $175,763.00 Fixed Income CITIGROUP INC 3.200%10/21/26 C133226 200,000.0000 111.767% $223,534.00 Fixed Income COMCAST CORP NEW SR 4.150% 10/15/28 CCN4128 100,000.0000 120.377% $120,377.00 Fixed Income CONSOLIDATED EDISON 0.650%12/01/23 CE00623 220,000.0000 100.199% $220,437.80 Fixed Income CUBESMART L P SR NT 2.000% 2/15/31 CLP2031 130,000.0000 100.270% $130,351.00 Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 155,000.0000 135.528% $210,068.40 Fixed Income CYRUSONE LP/CYRUSONE 2.150%11/01/30 CL22130 90,000.0000 97.469% $87,722.10 Fixed Income DISCOVERY COMM 3.950% 3/20/28 DC33928 200,000.0000 114.779% $229,558.00 Fixed Income DOWDUPONT INC 5.319% 11/15/38 D155338 160,000.0000 135.441% $216,705.60 Fixed Income ENBRIDGE INC SR GLBL3.125% 11/15/29 EIS3129 220,000.0000 109.954% $241,898.80 Fixed Income ENTERPRISE PROD OPER 4.900% 5/15/46 EPO4946 150,000.0000 127.280% $190,920.00 Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 111,385.3400 105.374% $117,371.19 Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 160,596.1800 108.803% $174,733.46 Fixed Income FGLMC#J 30401 3.000% 1/01/30 J30401F 111,815.8700 107.540% $120,246.79 Fixed Income FGLMC#Q13204 3.000%11/01/42 Q13204F 108,596.7100 109.114% $118,494.21 Fixed Income FHLMC G08823 3.500% 7/01/48 G08823F 168,421.4600 105.585% $177,827.80 Fixed Income FHLMC G14702 2.5000%3/1/2023 G14702F 51,076.7800 104.183% $53,213.32 Fixed Income FHLMC G15252 3.000%12/01/29 G15252F 97,954.0000 107.545% $105,344.63 Fixed Income FHLMC Q38373 3.500% 1/01/46 Q38373F 94,149.1200 108.339% $102,000.22 Fixed Income FHLMC RB5091 2.500%11/01/40 RB5091A 403,177.5300 105.707% $426,186.87 Fixed Income FHLMC SB8006 3.000% 9/01/34 SB8006A 161,957.6200 104.887% $169,872.49 Fixed Income FHLMC V60586 3.0000%8/1/2029 V60586F 110,514.0200 107.191% $118,461.08 Fixed Income FIRST HORIZON CORPOR4.000% 5/26/25 FHC4025 145,000.0000 111.719% $161,992.55 Fixed Income FNMA#MA3238 3.500%11/01/47 MA3238A 91,714.4600 106.036% $97,250.34 JHIGHMARK PARS: Central Contra Costa Sanitary District 9 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:31-Dec-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FNMA AL8174 3.5000%2/1/2046 AL8174A 220,550.1000 108.629% $239,581.37 Fixed Income FNMA AL8924 3.0000%12/1/2030 AL8924A 175,719.0500 106.176% $186,571.46 Fixed Income FNMA AL9376 3.0000%8/1/2031 AL9376A 96,499.5300 106.337% $102,614.71 Fixed Income FNMA AL9861 3.000% 8/01/30 AL9861A 252,860.2200 105.069% $265,677.70 Fixed Income FNMA AS4916 3.000% 5/01/30 AS4916A 178,042.6500 105.111% $187,142.41 Fixed Income FNMA AS7729 3.0000%8/1/2046 AS7729A 169,863.0600 107.992% $183,438.52 Fixed Income FNMA AT0293 3.0000%3/1/2043 AT0293A 108,184.8100 109.085% $118,013.40 Fixed Income FNMA BC1486 3.0000%8/1/2046 BC1486A 155,306.9900 107.688% $167,246.99 Fixed Income FNMA BM4913 3.000% 5/01/46 BM4913A 92,825.4200 106.323% $98,694.77 Fixed Income FNMA CA6348 2.500% 7/01/50 CA6348A 284,475.4300 105.671% $300,608.03 Fixed Income FNMA CA6638 2.500% 8/01/50 CA6638A 363,375.3000 105.561% $383,582.60 Fixed Income FNMA CA6801 2.500% 8/01/50 CA6801A 385,583.5200 105.507% $406,817.60 Fixed Income FNMA CA7231 2.500%10/01/50 CA7231A 311,168.8700 105.802% $329,222.89 Fixed Income FNMA FM3494 2.500% 4/01/48 FM3494A 188,377.3400 105.672% $199,062.10 Fixed Income FNMA MA2730 2.500% 8/01/46 MA2730A 451,980.5700 105.994% $479,072.29 Fixed Income FNMA MA27792.0000%10/1/2026 MA2779A 88,107.4300 104.501% $92,073.15 Fixed Income FNMA MA2895 3.000% 2/01/47 MA2895A 111,816.5800 105.173% $117,600.85 Fixed Income FNMA MA3210 3.500%11/01/47 MA3210A 87,589.6300 106.066% $92,902.82 Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 63,490.7800 106.320% $67,503.40 Fixed Income FNMA MA3332 3.500% 3/01/48 MA3332A 122,472.5500 105.962% $129,774.36 Fixed Income FNMA MA3489 3.500%10/01/33 MA3489A 66,209.4800 106.113% $70,256.87 Fixed Income FNMA MA3536 4.000%12/01/48 MA3536A 36,581.4600 106.814% $39,074.12 Fixed Income FNMA MA4123 2.000% 9/01/35 MA4123A 289,210.0500 104.543% $302,348.86 Fixed Income FORD CR AUTO OWN TR 1.870% 3/15/24 FCA0024 150,000.0000 101.951% $152,926.50 Fixed Income GENERAL MTRS FINL CO 4.000%10/06/26 GMF4026 160,000.0000 112.587% $180,139.20 Fixed Income GOLDMAN SACHS BDS 3.691% 6/05/28 GSB3628 200,000.0000 115.202% $230,404.00 Fixed Income HEWLETT PACKARD 4.650%10/01/24 HP44624 200,000.0000 113.510% $227,020.00 Fixed Income HONDA AUTO RECV 20183.160% 8/19/24 HAR3124 150,000.0000 102.110% $153,165.00 Fixed Income HUNTINGTON BANCSHARE 2.550% 2/04/30 HB22530 225,000.0000 107.245% $241,301.25 Fixed Income HYUNDAI AUTO LEASE 1.900% 5/15/22 HAL1922 283,310.3800 100.476% $284,658.94 JHIGHMARK PARS: Central Contra Costa Sanitary District 10 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:31-Dec-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income LOS ANGELES REV BDS 6.574% 7/01/45 LAR6545 100,000.0000 175.117% $175,117.00 Fixed Income LOWES COS INC SR NT 3.000%10/15/50 LC13050 90,000.0000 106.962% $96,265.80 Fixed Income NORTHWELL HEALTHCARE 3.809% 11/01/49 NH33849 110,000.0000 114.642% $126,106.20 Fixed Income PACIFIC LIFECORP 3.350% 9/15/50 PL33350 80,000.0000 111.110% $88,888.00 Fixed Income PHYSICIANS RLTY LP 3.950% 1/15/28 PRL3928 170,000.0000 108.827% $185,005.90 Fixed Income SBA TOWER TR 2013-1-3.722% 4/15/48 STT3748 210,000.0000 102.612% $215,485.20 Fixed Income STIFEL FINLCORP SR 4.000% 5/15/30 SFC4030 160,000.0000 114.274% $182,838.40 Fixed Income SUMITOMO MITSUI 1.050% 9/12/25 SM11025 250,000.0000 100.807% $252,017.50 Fixed Income TACT 2017-D A3 1.930% 1/18/22 T2A2222 17,806.4500 100.194% $17,840.99 Fixed Income TAOT 2019-C A3 MTGE 1.910% 9/15/23 T2A1923 205,000.0000 101.573% $208,224.65 Fixed Income TIME WARNER CABLE NT 7.300% 7/01/38 TWC7338 125,000.0000 148.194% $185,242.50 Fixed Income TOYOTA AUTO RECV OWN 2.520% 5/15/23 TAR2523 95,000.0000 101.830% $96,738.50 Fixed Income TRI-STATE GENERATION 6.000% 6/15/40 TG66040 115,000.0000 137.829% $158,503.35 Fixed Income UNITEDAIRI4-2A 3.750% 9/03/26 UA13726 107,715.1700 101.568% $109,404.14 Fixed Income UNITED STATES TREAS 0.625% 5/15/30 UST0630 450,000.0000 97.766% $439,947.00 Fixed Income UNITED STATES TREAS 0.875%11/15/30 UST0830 360,000.0000 99.672% $358,819.20 Fixed Income UNITED STATES TREAS 1.375% 8/15/50 UST1350 190,000.0000 93.656% $177,946.40 Fixed Income UNITED STATES TREAS 1.625%10/31/26 UST1626 150,000.0000 106.648% $159,972.00 Fixed Income UNTD AIR 2013-1 4.300% 8/15/25 UA24325 175,701.2900 100.998% $177,454.79 Fixed Income US TREAS BDS 3.625% 8/15/43 UTB3643 439,000.0000 141.227% $619,986.53 Fixed Income US TREAS NTS 1.625% 4/30/23 UTN1623 620,000.0000 103.449% $641,383.80 Fixed Income US TREAS NTS 2.375% 5/15/27 UTN2327 900,000.0000 111.543% $1,003,887.00 Fixed Income VERIZON COMMUNICATIO 2.987% 10/30/56 VC22956 226,000.0000 100.661% $227,493.86 Fixed Income VERIZON OWNER TR 1.940% 4/20/24 VOT0024 400,000.0000 102.145% $408,580.00 Fixed Income WORLD OMNI AUTO 2.500% 4/17/23 WOA2523 212,532.1600 100.999% $214,655.36 Fixed Income ANHEUSER-BUSCH INBEV WLDW IN BUD/42 125,000.0000 131.373% $164,216.25 Fixed Income PERRIGO FINANCE PLC 3.900%12/15/24 PRGO24 200,000.0000 109.811% $219,622.00 Fixed Income ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 80,000.0000 108.504% $86,803.20 Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 120,000.0000 140.290% $168,348.00 Fixed Income EL PASO ENERGY CORP 7.800% 8/01/31 EP31 115,000.0000 142.808% $164,229.20 JHIGHMARK PARS: Central Contra Costa Sanitary District 11 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:31-Dec-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income UNITEDHEALTH GROUP 12.750% 5/15/40 230,000.0000 108.483% $249,510.90 Fixed Income US TREAS NTS 1.625% 8/15/29 960,000.0000 106.977% $1,026,979.20 SUBTOTALS Cash&Cash Equivalents $874,577.42 Equities $40,565,283.36 Fixed Income $37,795,153.27 TOTALS $79,235,014.05 JHIGHMARK PARS: Central Contra Costa Sanitary District 12 CAPITAL MANAGEMENT Investment Summary Since Inception _ CCC.7D — Pension Beginning Value $3,359,081.81 Asset Allocation Contributions 6,590,010.48 Withdrawals -138,807.04 Total Assets: $11 ,865,103 Gain (Loss) 1,263,492.03 Interest and Dividends 791,325.46 Period Ending: 12-31-2020 Net Accrued Income 32,497.31 4Q20 Return: 6.03% Ending Market Value $11,897,600.05- 1 Year Return: 10.71% Inception-to-Date Return: 7.22% $135,640 Equity Inception Date:9-1-2017 1.14% $3,671,453 Plan target rate of return: 5.82% 30.940/, Fixed Income $8,058,010 67.910/, * Ending Market Value differs from total market value on page 14 due to differences in reporting methodology. The above ending market value includes cruals. a HIGHMARK® PARS: Central Contra Costa Sanitary District 13 CAPITAL MANAGEMENT Asset Allocation - Central Contra Costa Sanitary District Pension As of Fourth Quarter 2020 Current Asset Allocation Investment Vehicle Equity 30.94% Range: 20%-40% 3,671,453 Large Cap Core 5.99% IVV iShares Core S&P 500 ETF 710,613 4.04% VGIAX Vanguard Growth & Income Adm 479,274 Large Cap Value 2.95% IVE iShares S&P 500 Value ETF 350,263 Large Cap Growth 3.03% IVW iShares S&P 500 Growth ETF 358,988 Mid Cap Core 2.74% IWR iShares Russell Mid-Cap ETF 325,681 Small Cap Value 2.21% UBVFX Undiscovered Managers Behavioral Val R6 261,851 Small Cap Growth 2.19% RSEJX Victory RS Small Cap Growth R6 259,535 International Core 1.66% VEA Vanguard FTSE Developed Markets ETF 197,432 International Value 1.45% DODFX Dodge & Cox International Stock 171,779 International Growth 1.30% MGRDX MFS International Growth R6 154,418 Emerging Markets 2.38% HHHFX Hartford Schroders Emerging Mkts Eq F 282,122 Real Estate 1.01% VNQ Vanguard Real Estate ETF 119,497 Fixed Income 67.91% Range: 50%-80% 8,058,010 45.49% Core Fixed Income Portfolio 5,397,823 Short-Term 3.18% VFSUX Vanguard Short-Term Investment-Grade Adm 377,841 Intermediate-Term 8.99% PTTRX PIMCO Total Return Instl 1,066,914 9.00% PTRQX PGIM Total Return Bond R6 1,068,028 High Yield 1.24% PHIYX PIMCO High Yield Instl 147,405 Cash 1.14% Range: 0%-20% 135,640 1.14% FGZ O( First American Government Oblig Z 135,640 TOTAL 100.00% $11,865,103 JHIGHMARK PARS: Central Contra Costa Sanitary District 14 CAPITAL MANAGEMENT Selected Period Performance PARS/CCCSD 115P - PENSION Account 6746055901 Period Ending: 12/31/2020 Year Inception to Date to Date 3 Months (1 Year) 1 Year 3 Years 09/01/2017 Cash Equivalents .01 .36 .36 1.38 1.33 Lipper Money Market Funds Index .00 .40 .40 1.33 1.29 Fixed Income ex Funds 1.11 7.56 7.56 5.56 5.01 Total Fixed Income 1.28 7.76 7.76 5.57 5.00 BBG Barclays US Aggregate Bd Index .67 7.51 7.51 5.34 Total Equities 17.61 17.18 17.18 11.50 12.78 Large Cap Funds 12.49 17.13 17.13 13.36 14.77 S&P 500 Composite Index 12.15 18.40 18.40 14.18 15.58 Mid Cap Funds 19.92 16.88 16.88 11.52 13.00 Russell Midcap Index 19.91 17.10 17.10 11.61 13.28 Small Cap Funds 33.01 20.81 20.81 11.91 13.88 Russell 2000 Index 31.37 19.96 19.96 10.25 12.28 International Equities 18.91 13.96 13.96 6.29 7.50 MSCI EAFE Index 16.05 7.82 7.82 4.28 5.92 MSCI EM Free Index 19.70 18.31 18.31 6.17 7.71 Real Estate - ETFs / Sctr Fds 9.43 -7.14 -7.14 4.93 4.62 Wilshire REIT Index 10.62 -7.90 -7.90 3.30 3.46 Total Managed Portfolio 6.03 10.71 10.71 7.35 7.22 CCCSD Pension 5.40 9.89 9.89 6.99 7.03 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 15 CAPITAL MANAGEMENT Fixed Income Portfolio: Statistics As of Fourth Quarter 2020 CCCSD BC Aggregate Bond Pension Index Weighted Average Maturity 7.89 years 8.14 years Effective Duration 6.01 years 6.26 years Average Coupon 2.86% 2.80% Yield to Maturity 1.23% 1.02% Average Quality Aa3 Aa2 JH IGHMARK® PARS: Central Contra Costa Sanitary District 16 CAPITAL MANAGEMENT Source: BondEdge Fixed Income Portfolio: Sectors As of Fourth Quarter 2020 40.0% 35.0% 30.0% 25.0% 20.0'3' 15.0'3' 10.03' 5.0% — 0.0% Cash Treasury Agency Corp Non-Corp MBS CMO ABS CMBS ■CCCSD Pension 0.0% 24.0% 0.0% 38.9% 0.0% 28.2% 0.0% 9.0% 0.0% ■Barclays U.S.Aggregate Bond Index 0.0% 37.9% 1.7% 28.0% 4.6% 25.2% 0.0% 0.3% 2.3% JHIGHMARK PARS: Central Contra Costa Sanitary District 17 CAPITAL MANAGEMENT Source: BondEdge Fixed Income Portfolio: Effective Duration and Effective Maturity As of Fourth Quarter 2020 Effective Duration Effective Maturity 30% 459% 40% 25% 35% 30% 20% 25% 15% 20% 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. ■ CCC SD Pension 10.08% 32.42% 11.68% 14.44% 14.60% 16.79% •CCCSD Pension 7.21% 18.57% 23.54% 16.03% 16.58% 18.08% BC Aggregate Bond Index 0.28% 42.60% 19.02% 11.23% 7.52% 19.35% BC Aggregate Bond Index 0.42% 29.49% 28.47% 11.39% 10.08% 20.14% JHIGHMARK PARS: Central Contra Costa Sanitary District 18 CAPITAL MANAGEMENT Source: BondEdge Holdings- Reporting as of Trade Date Account:6746055901- PARS/CCCSD 115P- PENSION As of:31-Dec-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Cash&Cash Equivalents CASH (516.4500) $1.0000 ($516.45) Cash&Cash Equivalents FI RST AMERN GOVT 0BLIG FDCLZ#3676 FGZXX 136,156.8100 $1.0000 $136,156.81 Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 3,930.8770 $43.7000 $171,779.32 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 13,877.1320 $20.3300 $282,122.09 Equities ISHARES RUSSELL MIDCAP ETF IWR 4,751.0000 $68.5500 $325,681.05 Equities ISHARES S&P 500 GROWTH ETF IVW 5,625.0000 $63.8200 $358,987.50 Equities ISHARES S&P 500 VALUE ETF IVE 2,736.0000 $128.0200 $350,262.72 Equities ISHARES TR CORE S&P500 ETF IVV 1,893.0000 $375.3900 $710,613.27 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 31623.1430 $42.6200 $154,418.35 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 4,069.1640 $64.3500 $261,850.70 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 4,182.0000 $47.2100 $197,432.22 Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 5,113.8930 $93.7200 $479,274.05 Equities VANGUARD REAL ESTATE ETF VNQ 1,407.0000 $84.9300 $119,496.51 Equities VICTORY RS SM CAP GROW#279 RSEJX 2,509.5220 $103.4200 $259,534.77 Fixed Income PIMCO HIGH YIELD,INSTL #108 PHIYX 16,234.0050 $9.0800 $147,404.77 Fixed Income PIMCO TOTAL RETURN INSTL #35 PTTRX 100,652.2420 $10.6000 $1,066,913.77 Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 70,683.5040 $15.1100 $1,068,027.75 Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 34,255.7180 $11.0300 $377,840.57 Fixed Income ATHENE GLOBAL FNDNG 2.550% 6/29/25 AGF2525A 35,000.0000 105.573% $36,950.55 Fixed Income CCCCIT2014-A1 2.880% 1/23/23 CC22823A 77,000.0000 100.132% $77,101.64 Fixed Income HAROT2017-4 A3 2.050% 11/22/21 H2A2121A 3,558.0800 100.122% $3,562.42 Fixed Income UNITED STATES TREAS 0.125%10/31/22 UST0122D 50,000.0000 100.016% $50,008.00 Fixed Income UNITED STATES TREAS 0.375% 11/30/25 UST0025D 50,000.0000 100.141% $50,070.50 Fixed Income UNITED STATES TREAS 2.750% 6/30/23 UST0023B 5,000.0000 106.156% $5,307.80 Fixed Income WELLS FARGO&CO NEW 3.000% 10/23/26 WFC3026A 80,000.0000 110.797% $88,637.60 Fixed Income AMERICAN EXPRESS CO 3.000% 10/30/24 AEC3024 30,000.0000 109.219% $32,765.70 Fixed Income AT&T INC GLBL NT 3.500% 6/01/41 AIG3541 60,000.0000 107.810% $64,686.00 Fixed Income ATHENE GLOBAL FUNDIN 2.500% 1/14/25 AGF2525 15,000.0000 104.754% $15,713.10 Fixed Income BANK OF AMERICA CORP 3.194% 7/23/30 BOA3130 60,000.0000 112.069% $67,241.40 Fixed Income BB&T CORP SR MTN 2.850% 10/26/24 BCS2824 35,000.0000 108.214% $37,874.90 JHIGHMARK PARS: Central Contra Costa Sanitary District 19 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055901- PARS/CCCSD 115P- PENSION As of:31-Dec-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income BERKSHIRE HATHAWAY 2.850% 10/15/50 BH22850 15,000.0000 107.097% $16,064.55 Fixed Income BK OF NOVA SCOTIA 2.700% 3/07/22 BON2722 40,000.0000 102.933% $41,173.20 Fixed Income BOEING CO 5.040% 5/01/27 BC55027 25,000.0000 116.907% $29,226.75 Fixed Income BP CAPITAL MARKETS 3.796% 9/21/25 BCM3725 25,000.0000 113.396% $28,349.00 Fixed Income BRISTOL-MYERS SQUIBB 3.250% 2/20/23 BS33223 35,000.0000 105.199% $36,819.65 Fixed Income BROWN &BROWN INC SR 2.375% 3/15/31 BB12331 25,000.0000 104.661% $26,165.25 Fixed Income CAPITAL ONE NTS 3.800% 1/31/28 CON3828 70,000.0000 115.240% $80,668.00 Fixed Income CDN IMPERIAL BK 2.550% 6/16/22 CIB2522 30,000.0000 103.390% $31,017.00 Fixed Income CITIGROUP INC 3.200%10/21/26 C133226 45,000.0000 111.767% $50,295.15 Fixed Income COMCAST CORP NEW SR 4.150% 10/15/28 CCN4128 25,000.0000 120.377% $30,094.25 Fixed Income CONSOLIDATED EDISON 0.650%12/01/23 CE00623 55,000.0000 100.199% $55,109.45 Fixed Income CUBESMART L P SR NT 2.000% 2/15/31 CLP2031 30,000.0000 100.270% $30,081.00 Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 30,000.0000 135.528% $40,658.40 Fixed Income CYRUSONE LP/CYRUSONE 2.150%11/01/30 CL22130 25,000.0000 97.469% $24,367.25 Fixed Income DOWDUPONT INC 5.319% 11/15/38 D155338 25,000.0000 135.441% $33,860.25 Fixed Income ENBRIDGE INC SR GLBL3.125% 11/15/29 EIS3129 45,000.0000 109.954% $49,479.30 Fixed Income ENTERPRISE PROD OPER 4.900% 5/15/46 EPO4946 40,000.0000 127.280% $50,912.00 Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 18,564.2100 105.374% $19,561.85 Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 27,688.9800 108.803% $30,126.44 Fixed Income FGLMC#J 30401 3.000% 1/01/30 J30401F 49,199.0000 107.540% $52,908.60 Fixed Income FGLMC G08701 3.000% 4/01/46 G08701F 15,988.7200 105.248% $16,827.81 Fixed Income FHLMC G08741 3.000%12/01/46 G08741F 78,912.7000 105.539% $83,283.67 Fixed Income FHLMC G08823 3.500% 7/01/48 G08823F 40,070.5100 105.585% $42,308.45 Fixed Income FHLMC G15252 3.000%12/01/29 G15252F 22,340.4000 107.545% $24,025.98 Fixed Income FHLMC Q38373 3.500% 1/01/46 Q38373F 23,537.2800 108.339% $25,500.05 Fixed Income FHLMC RB5091 2.500%11/01/40 RB5091A 99,550.0100 105.707% $105,231.33 Fixed Income FHLMC SB8006 3.000% 9/01/34 SB8006A 26,992.9200 104.887% $28,312.06 Fixed Income FIRST HORIZON CORPOR4.000% 5/26/25 FHC4025 35,000.0000 111.719% $39,101.65 Fixed Income FNMA#AB3678 3.500%10/01/41 AB3678A 31,330.3300 110.483% $34,614.69 Fixed Income FNMA#MA3238 3.500%11/01/47 MA3238A 68,785.8300 106.036% $72,937.74 JHIGHMARK PARS: Central Contra Costa Sanitary District 20 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055901- PARS/CCCSD 115P- PENSION As of:31-Dec-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FNMA#MA3276 3.500% 1/01/48 MA3276A 13,390.1200 106.112% $14,208.52 Fixed Income FNMA AL9376 3.0000%8/1/2031 AL9376A 21,931.7100 106.337% $23,321.52 Fixed Income FNMA AS4916 3.000% 5/01/30 AS4916A 26,706.3900 105.111% $28,071.35 Fixed Income FNMA AS7729 3.0000%8/1/2046 AS7729A 29,286.7400 107.992% $31,627.34 Fixed Income FNMA AS7817 2.500% 8/01/46 AS7817A 88,621.3700 106.004% $93,942.20 Fixed Income FNMA BC1486 3.0000%8/1/2046 BC1486A 29,866.7200 107.688% $32,162.87 Fixed Income FNMA BM4913 3.000% 5/01/46 BM4913A 26,521.5300 106.323% $28,198.49 Fixed Income FNMA CA6348 2.500% 7/01/50 CA6348A 94,825.1400 105.671% $100,202.67 Fixed Income FNMA CA6638 2.500% 8/01/50 CA6638A 88,388.5800 105.561% $93,303.87 Fixed Income FNMA CA7231 2.500%10/01/50 CA7231A 172,871.5900 105.802% $182,901.60 Fixed Income FNMA MA2730 2.500% 8/01/46 MA2730A 56,497.5700 105.994% $59,884.03 Fixed Income FNMA MA2779 2.0000%10/1/2026 MA2779A 18,746.2700 104.501% $19,590.04 Fixed Income FNMA MA2895 3.000% 2/01/47 MA2895A 16,772.5000 105.173% $17,640.14 Fixed Income FNMA MA3120 3.500% 9/01/47 MA3120A 52,118.3600 106.127% $55,311.65 Fixed Income FNMA MA3210 3.500%11/01/47 MA3210A 21,897.4000 106.066% $23,225.70 Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 27,210.3400 106.320% $28,930.03 Fixed Income FNMA MA3332 3.500% 3/01/48 MA3332A 18,144.0900 105.962% $19,225.84 Fixed Income FNMA MA3489 3.500%10/01/33 MA3489A 12,196.4800 106.113% $12,942.05 Fixed Income FNMA MA3536 4.000%12/01/48 MA3536A 23,857.4800 106.814% $25,483.13 Fixed Income FNMA MA4123 2.000% 9/01/35 MA4123A 96,403.3500 104.543% $100,782.95 Fixed Income FORD CR AUTO OWN TR 1.870% 3/15/24 FCA0024 50,000.0000 101.951% $50,975.50 Fixed Income FORDO 2019-B A3 2.230%10/15/23 F2A2223 50,000.0000 101.555% $50,777.50 Fixed Income GENERAL MTRS CO 5.000%10/01/28 GMC5028 25,000.0000 118.988% $29,747.00 Fixed Income GMCAR 2019-1 A3 2.970%11/16/23 G2A2923 35,034.2800 101.718% $35,636.17 Fixed Income GOLDMAN SACHS BDS 3.691% 6/05/28 GSB3628 60,000.0000 115.202% $69,121.20 Fixed Income HAIR 2017-4A-4 2.210% 3/21/24 H222224 25,000.0000 100.534% $25,133.50 Fixed Income HAROT 2019-1 A3 2.830% 3/20/23 H2A2823 47,210.5300 101.701% $48,013.58 Fixed Income HEWLETT PACKARD 4.650%10/01/24 HP44624 45,000.0000 113.510% $51,079.50 Fixed Income HUNTINGTON BANCSHARE 2.550% 2/04/30 HB22530 50,000.0000 107.245% $53,622.50 Fixed Income HYUNDAI AUTO LEASE 1.900% 5/15/22 HAL1922 35,413.8000 100.476% $35,582.37 JHIGHMARK PARS: Central Contra Costa Sanitary District 21 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055901- PARS/CCCSD 115P- PENSION As of:31-Dec-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income KIMCO REALTY CORP 3.800% 4/01/27 KRC3827 50,000.0000 113.128% $56,564.00 Fixed Income LOWES COS INC SR NT 3.000%10/15/50 LC13050 20,000.0000 106.962% $21,392.40 Fixed Income MAGELLAN MIDSTREAM 5.000% 3/01/26 MM55026 25,000.0000 119.176% $29,794.00 Fixed Income NORTHWELL HEALTHCARE 3.809% 11/01/49 NH33849 30,000.0000 114.642% $34,392.60 Fixed Income PACIFIC LIFECORP 3.350% 9/15/50 PL33350 20,000.0000 111.110% $22,222.00 Fixed Income PHYSICIANS RLTY LP 3.950% 1/15/28 PRL3928 40,000.0000 108.827% $43,530.80 Fixed Income REPUBLIC SVCS NTS 3.375%11/15/27 RSN3327 40,000.0000 113.404% $45,361.60 Fixed Income SBA TOWER TR 2013-1-3.722% 4/15/48 STT3748 50,000.0000 102.612% $51,306.00 Fixed Income STIFEL FINL CORP SR 4.000% 5/15/30 SFC4030 35,000.0000 114.274% $39,995.90 Fixed Income TAOT 2017-D A3 1.930% 1/18/22 T2A2222 2,967.7500 100.194% $2,973.51 Fixed Income TIME WARNER CABLE NT 7.300% 7/01/38 TWC7338 30,000.0000 148.194% $44,458.20 Fixed Income TOYOTA AUTO RECV OWN 2.520% 5/15/23 TAR2523 55,000.0000 101.830% $56,006.50 Fixed Income TRI-STATE GENERATION 6.000% 6/15/40 TG66040 30,000.0000 137.829% $41,348.70 Fixed Income UNITEDAIR 4.150% 8/25/31 UA44131 30,299.7200 104.304% $31,603.82 Fixed Income UNITED STATES TREAS 0.625% 5/15/30 UST0630 125,000.0000 97.766% $122,207.50 Fixed Income UNITED STATES TREAS 0.875%11/15/30 UST0830 70,000.0000 99.672% $69,770.40 Fixed Income UNITED STATES TREAS 1.375% 8/15/50 UST1350 60,000.0000 93.656% $56,193.60 Fixed Income UNITED STATES TREAS 1.625%10/31/26 UST1626 50,000.0000 106.648% $53,324.00 Fixed Income UNTD AIR 2013-1 4.300% 8/15/25 UA24325 45,682.3300 100.998% $46,138.24 Fixed Income US TREAS BDS 3.625% 8/15/43 UTB3643 198,000.0000 141.227% $279,629.46 Fixed Income US TREAS NTS 2/15/26 UTN1726 75,000.0000 106.359% $79,769.25 Fixed Income US TREAS NTS 1.625% 4/30/23 UTN1623 95,000.0000 103.449% $98,276.55 Fixed Income US TREAS NTS 2.375% 5/15/27 UTN2327 150,000.0000 111.543% $167,314.50 Fixed Income VERIZON COMMUNICATIO 2.987% 10/30/56 VC22956 41,000.0000 100.661% $41,271.01 Fixed Income VERIZON OWNER TR 1.940% 4/20/24 VOT0024 100,000.0000 102.145% $102,145.00 Fixed Income WALGREEN CO SR NT 3.100% 9/15/22 WCS3122 30,000.0000 104.386% $31,315.80 Fixed Income WILLIAMS PRTNRS NTS 3.600% 3/15/22 WPN3622 45,000.0000 103.226% $46,451.70 Fixed Income ANHEUSER-BUSCH INBEV WLDW IN BUD/42 30,000.0000 131.373% $39,411.90 Fixed Income ROYAL BK SCOTLAND GR 3.875% 9/12/23 RBS23B 20,000.0000 108.504% $21,700.80 Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 45,000.0000 140.290% $63,130.50 JHIGHMARK PARS: Central Contra Costa Sanitary District 22 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055901- PARS/CCCSD 115P- PENSION As of:31-Dec-2020 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income EL PASO ENERGY CORP 7.800% 8/01/31 EP31 30,000.0000 142.808% $42,842.40 Fixed Income UNITEDHEALTH GROUP 12.750% 5/15/40 50,000.0000 108.483% $54,241.50 Fixed Income US TREAS NTS 1.625% 8/15/29 245,000.0000 106.977% $262,093.65 SU BTOTALS Cash&Cash Equivalents $135,640.36 Equities $3,671,452.55 Fixed Income $8,058,009.84 TOTALS $11,865,102.75 JHIGHMARK PARS: Central Contra Costa Sanitary District 23 CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT For Period Ending December 31 , 2020 LARGE CAP 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 iShares Core S&P 500 ETF (4/17) 12.14 53 18.37 38 18.37 38 14.14 24 15.18 20 13.83 12 iShares S&P 500 Value ETF (4/17) 14.44 63 1.24 62 1.24 62 6.62 38 10.35 32 10.56 32 Vanguard Growth & Income Adm (12/16) 12.49 46 18.08 41 18.08 41 13.49 40 14.63 34 13.90 10 iShares S&P 500 Growth ETF (4/17) 10.62 68 33.21 51 33.21 51 20.29 52 18.77 43 16.28 30 S&P 500 TR USD 12.15 -- 18.40 -- 18.40 -- 14.18 -- 15.22 -- 13.88 -- MID CAP EQUITY iShares Russell Mid-Cap ETF (3/16) 19.85 61 16.91 23 16.91 23 11.45 23 13.22 20 12.24 17 Russell Mid Cap TR USD 19.91 -- 17.10 -- 17.10 -- 11.61 -- 13.40 -- 12.41 -- SMALL CAP EQUITY FUNDS Undiscovered Managers Behavioral Val R6 (9/16) 43.26 1 3.62 46 3.62 46 2.72 39 8.28 38 10.57 -- Russell 2000 Value TR USD 33.36 -- 4.63 -- 4.63 -- 3.72 -- 9.65 -- 8.66 -- Victory RS Small Cap Growth R6 (2/19) 22.57 86 38.32 44 38.32 44 20.47 40 19.31 36 16.04 - Russell 2000 Growth TR USD 29.61 -- 34.63 -- 34.63 -- 16.20 -- 16.36 -- 13.48 - INTERNATIONAL EQUITY FUNDS Dodge&Cox International Stock 24.69 5 2.10 42 2.10 42 0.93 42 6.65 21 4.63 20 Vanguard FTSE Developed Markets ETF (9/18) 16.95 29 10.29 39 10.29 39 4.82 41 8.34 34 5.93 27 MFS International Growth R6 11.58 84 15.82 77 15.82 77 10.38 45 12.88 30 7.86 41 MSCI EAFE NR USD 16.05 -- 7.82 -- 7.82 -- 4.28 -- 7.45 -- 5.51 -- Hartford Schroders Emerging Mkts Eq F 21.37 25 23.78 25 23.78 25 8.59 24 14.79 18 5.10 - MSCI EM NR USD 19.70 -- 18.31 -- 18.31 -- 6.17 -- 12.81 - 3.63 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 24 CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT For Period Ending December 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) 9.25 60 -4.72 45 -4.72 45 4.92 41 5.64 39 8.67 32 Wilshire REIT Index 10.62 -- -7.90 -- -7.90 -- 3.30 -- 4.25 -- -0.88 BOND FUNDS PIMCO Total Return Instl 1.06 82 8.88 34 8.88 34 5.54 43 4.86 50 4.19 55 PGIM Total Return Bond R6 (5/16) 2.38 23 8.10 52 8.10 52 6.08 23 5.95 10 5.36 5 Vanguard Short-Term Investment-Grade Adm 0.98 39 5.25 14 5.25 14 4.00 10 3.38 12 2.76 14 BBgBarc US Agg Bond TR USD 0.67 -- 7.51 -- 7.51 -- 5.34 -- 4.44 -- 3.84 -- PIMCO High Yield Instl 5.45 68 5.34 48 5.34 48 5.69 27 7.32 37 6.17 22 ICE BofA US High Yield Mstr II Index 6.48 -- 6.17 -- 6.17 -- 5.88 -- 8.43 -- 7.83 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 25 CAPITAL MANAGEMENT