HomeMy WebLinkAbout05.a. Review Highmark Other Post-Employment Benefits (OPEB) and Pension Prefunding Sub-trust Reports for the First Quarter of calendar year 2021 Page 1 of 18
Item 5.a.
,orVIOIN SAN
May 25, 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 FIRST
QUARTER OF CALENDAR YEAR 2021
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 March 31, 2021.
Central San's Investment Manager at Highmark, Andrew Brown, has provided an in-depth written analysis
of market and fund performance attached to this Memo (Attachment 1). 1 n summary, this quarter's report
reflects returns of 1.95% and -0.12% for the Central San's OPEB and Pension Pre-funding sub-trusts,
respectively. The long-term target returns for each fund of 6.25% for the OPEB trust and 5.82% for the
Pension Pre-funding trust. I n comparison, the inception to-date returns have been 9.65% and 6.66% for
the OPEB and Pension Pre-funding sub-trusts respectively.A presentation of financial highlights
comparing quarterly results to historical results as well as benchmarks is also included, which includes an
overview slide showing the entities involved in administering the trusts for Central San (Attachment 2).
Strategic Plan Tie-In
GOAL THREE:Fiscal Responsibility
Strategy 1—Maintain financial stability and sustainability,, Strategy 2—Ensure integrity and transparency in financial
management
ATTACHMENTS:
1. Highmark Overview of First Quarter 2021
2. PARS Investment Report First Quarter 2021
May 25, 2021 Regular FINANCE Committee Meeting Agenda Packet- Page 303 of 326
Page 2 of 18
Attachment 1
JHIGHMARKe
CAPITAL MANAGEMENT
April 21, 2021
Phil Leiber
Director of Finance and Administration
Central Contra Costa Sanitary District
5019 Imhoff Place
Martinez, CA 94553-4392
RE: 1Q Quarter 2021 OPEB/Pension Report
Dear Mr. Leiber,
Market Commentary
Fueled by another massive dose of fiscal stimulus for the second consecutive quarter and the
ongoing deployment of vaccines, the economic flame is likely to continue burning hot in 2021.
President Biden's $1.9 trillion American Rescue Plan effectively supersized the already enormous
fiscal support pumped into the domestic economy in response to the impact of the pandemic.
While 9.7 million fewer Americans are employed relative to pre-pandemic levels, the job market
recovery continues with solid momentum. Nonfarm payrolls rose by 916,000 in March--the most
since October 2019--while new unemployment claims declined at the fastest rate since the
pandemic began and unemployment edged down to 6 percent at quarter-end.'
Equity markets continued to cheer progress towards putting the pandemic in the rearview mirror
with the large cap S&P 500 index gaining 6.2 percent year-to-date. In a change of pace from the
prior three quarters, and reflecting increasing confidence in a robust economic recovery, more
cyclically sensitive domestic large cap value stocks significantly outperformed growth stocks
during the first quarter by 9.1 percent.z International stocks also posted a solid quarter, rising by
3.5 percent.3
Cyclically sensitive equity sectors including energy, financials and industrials—the biggest
underperformers of 2020—outperformed strongly this year while last year's leading technology
companies lagged. U.S. small cap stocks, which are typically more leveraged to the domestic
economy relative to their larger peers, have been the best performing asset class over the past
year, logging a staggering return of 95.2%.4
As consumer and industrial demand surges, commodity prices responded by sending crude oil
prices up some 22 percent5 during the first quarter. Another closely followed economic barometer
in the commodity complex, the price of copper, also affirmed the strength of the global economic
rebound. The industrial metal now costs nearly double what it was selling for just one year ago.
While equity markets embraced fiscal stimulus-induced economic progress, bond markets
recoiled as inflation and growth expectations reset, sending interest rates higher. The bellwether
10-year Treasury yield reached 1.74 percent at quarter-end nearly doubling its level at the start of
the year.
1 Source: U.S. Bureau of Labor Statistics
2 MSCI USA Large Cap Value Index versus MSCI USA Large Cap Growth Index
3 MSCI EAFE Index USD
a MSCI USA Small Cap Index
S West Texas Intermediate crude oil
May 25, 2021 Regular FINANCE Committee Meeting Agenda Packet- Page 304 of 326
Page 3 of 18
Bond index returns fell in suit, with longer-term investment grade bonds faring the worst--falling
by over 10% year-to-date.6 Only the most credit-sensitive sectors of the fixed income market
were able to overcome the headwinds of rising interest rates to post positive returns for the
quarter. Bank loans and high yield bonds benefited from tightening credit spreads and lower
sensitivity to the Treasury yield curve. Tax-exempt municipal bonds, while not totally immune
from rising rates, fared better due to a combination of stimulus measures intended to shore up
state and local finances and increasing prospects for higher taxes on the wealthy.
Not all Roses
Flourishing economic optimism remains at least partially balanced by some notable areas that
continue to concern financial markets. In the geopolitical realm, U.S. tensions with China may be
bound for a return to the front burner following China's recent$400 billion, 25-year strategic
agreement with Iran that calls for joint weapons development and the sharing of intelligence.
Such an agreement only raises the odds that the relationship between the world's two largest
economies becomes increasingly antagonistic.
And of course, the pandemic remains in play. While deployment of vaccines has been an
unqualified game changer, declaring victory in the war against COVID-19 may be premature.
Many more shots need to make their way into arms before business-as-usual returns.
Here in the U.S., as some states lift mask requirements and restrictions on gatherings, there is
concern over a "fourth wave" of infections and hospitalizations due to the existing and emerging
variants of the virus. Internationally, the deployment of vaccines has not gone as well as it has
domestically. In fact, many countries are already dealing with a resurgence in infections. In this
regard, optimism is at risk of being derailed if the progress of global vaccine deployment does not
step up to meet expectations.
Looking Forward
After twelve months of increasing equity market valuations, the follow-through for corporate
earnings is a critical underpinning of future returns. Known and unknown risks notwithstanding, it
would not be shocking to see company earnings surprise to the upside again in the second
quarter, similar to when the U.S. emerged from the 2008 financial crisis. We believe economically
sensitive areas of the market are poised to show strong earnings growth due to low expectations
and an uplift in stimulus-driven demand.
With the recession behind us and a robust early-stage recovery in force, companies should
perform well this year. We believe risk asset returns in 2021 and beyond will be driven by the
interplay of improving fundamentals, counterbalanced by valuation compression, as the market
cycle matures. Meanwhile, fixed income asset classes, particularly those with longer durations,
will continue to battle the headwinds of increasing public debt and a reflationary economic
outlook. Such a challenging environment for fixed income must be balanced with the potential for
an escalation of prevailing uncertainties that can quickly change market appetite for risk assets.
Plan Performance
The Central Contra Costa Sanitary District OPEB Plan gained 1.95% gross of investment fees for
the first quarter, which lagged the Plan's benchmark target of 2.26%. Fixed income returns
declined -3.20%, which was ahead of the Bloomberg Barclays US Aggregate Bond Index decline
of-3.37%. Yields rose/prices fell in the quarter as investors questioned whether inflationary
trends would cause central bank policy tightening. Lower quality outperformed higher quality in
6 Barclays Long U.S.Govt/Credit
May 25, 2021 Regular FINANCE Committee Meeting Agenda Packet- Page 305 of 326
Page 4 of 18
the quarter. Relative to the benchmark, performance was supported by both the Plan's shorter
duration tilt, and exposure to high-yield. The Pimco High Yield Bond Fund returned (+0.06%) and
the Vanguard Short-Term Investment Grade Bond Fund returned (-0.47%). The internally
managed fixed income portfolio declined -3.17%, benefitting relative to the benchmark, by
maintaining a lower than benchmark duration of 5.65 years compared with the Bloomberg
Barclays US Aggregate Index duration 6.25 years at quarter-end. The PGIM Total Return Bond
Fund declined the most (-4.44%), as it maintained the longest duration positioning of our three
managers (6.9 years as of 2/28/21 per Morningstar). Fixed income was the second largest
detractor with respect to the Plans' relative underperformance in the quarter.
Equity returns were more supportive of performance in the first quarter. The equity segment
gained 6.76%, to cap off a twelve-month period of performance where the Plan's equities gained
63.68%. In the quarter, small cap equity was the strongest performing segment from an absolute
basis, gaining 10.4%, but lagged the Russell 2000 Index benchmark due to underperformance
from our small cap growth manager. The shift in cyclical performance that we saw in the fourth
quarter of 2020 has continued, with small cap equities benefitting. Additionally, REIT equity also
posted a strong return, up 8.8%, making it the second strongest performing equity category for
the Plan in the quarter. Further strength from the equity segment came from large cap (+6.56%)
and mid cap equity (+8.13%). Despite three of the four international equity managers
outperforming their benchmark targets in the quarter, international equity posted a lack-luster gain
of 3.84%. The overweight in emerging market equities, was a drag on relative performance in the
quarter.
We ended the quarter with a target asset allocation of 52.5% stocks, 47% bonds and 0.5% cash
for the OPEB Plan. This represents a 1.5% increase to equities compared to the positioning at
the end of the third quarter.
The Central Contra Costa Sanitary District Pension Plan declined -0.12% in the quarter, gross of
investment fees, which trailed the District's Plan benchmark target of 0.35%. The target asset
allocation for the pension plan at quarter-end was 32% stocks, 67.5% bonds, and 0.5% cash.
This represents a 1% increase in equities versus the end of the fourth quarter.
Andrew Brown
May 25, 2021 Regular FINANCE Committee Meeting Agenda Packet- Page 306 of 326
PUBLIC
AGENCY
RETIREMENT
SERVICES PARS
TRUSTED SOLUTIONS. LASTING RESULTCENTRAL CONTRA COSTA SANITARY DISTRICT
J � -
PARS 115 Trust - OPEB Prefunding Program and Pension Rate Stabilization Program
May 25, 2021
�.
PARS 115 TRUST TEAM
Trust Administrator & Consultant
A6"Cy PARS • Recordkeeping • Processes contributions/disbursements
RETIREMENT
SERVICES • Sub-trust accounting • Hands-on, dedicated support teams
TRUSTED SOLUTIONS.LASTING RESULTS. . Monitors plan compliance • Coordinates all agency services
37 2,000+ 1 ,000+ 400+ 500 K+ SUB
Years of Experience Plans under Public Agency 115 Trust Clients Plan Participants Assets under
(1984-2021) Administration Clients Administration
Investment Manager
CVbanks JHIGHMARK®
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)
158 S5.OT 102 S18.2B
Years of Experience Assets under Years of Experience Assets under
(1863-2021) Administration (1919-2021) Management&
Advisement
PU AGENCY PARS
RETIREMENT
SERVICES
TRUSTED S%yN?2 1M2F&gular FINANCE Committee Meeting Agenda Packet- Page 308 of 326 CENTRAL CONTRA COSTA SANITARY DISTRICT 2
PARS IRS-APPROVED SECTION 115 TRUST
Prefund • ' GASB 75 0 GASB 68
I I I I
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!
PUBLIC
PARS
AGENCY
RETIREMENT
SERVICES
CENTRAL CONTRA COSTA SANITARY DISTRICT
TRUSTED sffi?Z!!MfluK%gular FINANCE Committee Meeting Agenda Packet- Page 309 of 326 3
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 MARCH 31, 2021 :
Initial Contribution: March 2009: $560,000
Additional Contributions: $43,448,700
Total Contributions: $44,008,700
Disbursements: $0
Total Investment Earnings: $38,425,659
Account Balance: $80,868,359
PUBLIC
PARS
AGENCY
RETIREMENT
SERVICES
CENTRAL CONTRA COSTA SANITARY DISTRICT 4
TRUSTED sffi?Z!!MfluK%gular FINANCE Committee Meeting Agenda Packet- Page 310 of 326
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 MARCH 31, 2021 :
Initial Contribution: August 2017: $3,359,000
Additional Contributions: $6,687,499
Total Contributions: $10,046,499
Disbursements: $0
Total Investment Earnings: $2,077,028
Account Balance: $12,189,893
PUBLIC
PARS
AGENCY
RETIREMENT
SERVICES
CENTRAL CONTRA COSTA SANITARY DISTRICT 5
TRUSTED WzA?s2 MfluK'6gular FINANCE Committee Meeting Agenda Packet- Page 311 of 326
PARS: Central Contra Costa Sanitary District
OPEB and Pension Plan
First Quarter 2021
Presented by
Andrew Brown, CFA
JHIGHMARK@
CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 6
Economic and Market Forecasts - April 2021
2021 2022
Assumptions Assumptions
GDP 5.5% -7.5% �� 3.5% - 4.5% �
Ab
S&P500 earnings
nemploymen - .5%
Core PCE Inflation 1 .8% - 2. 1 % 1 .8% - 2. 1 %
1w MAI
Fed Funds Target j. 0.0% - 0.25% 0.0% - 5%
Investment Summary Since Inceptiori
CiCiCisD - OPEB Beginning Value 566,683.26
Asset Allocation Contributions 106,760,171.26
Withdrawals -64,844,453.93
Total Assets: $80,742,177 Gain (Loss) 21,255,611.90
Interest and Dividends 17,004,464.35
Period Ending: 3-31-2021 Net Accrued Income 122,918.67
1 Q21 Return: 1 .95% Ending Market Value $80,865,395.51*
1 Year Return: 30.13%
Inception-to-Date Return: 9.65% Cash
Inception Date:4-1-2009 $412,367
0.51T,
Plan target rate of return: 6.25%
Equity
$42,926,667
53.170]0
Fixed Income
$37,403,143
46.320]0
* Ending Market Value differs from total market value on page 3 due to differences in reporting methodology. The above ending market value includes accruals.
HIGHMARK®
CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 8
Asset Allocation - Central Contra Costa Sanitary District OPEB
As of First Quarter 2021
Current Asset Allocation
Equity 53.17% Range: 40%-60% 42,926,667
Large Cap Core 11.12% IVV iShares Core S&P 500 ETF 8,982,378
7.11% VGIAX Vanguard Growth & Income Adm 5,737,781
Large Cap Value 5.03% IVE iShares S&P 500 Value ETF 4,058,249
Large Cap Growth 5.08% IVW iShares S&P 500 Growth ETF 4,103,362
Mid Cap Core 5.19% IWR iShares Russell Mid-Cap ETF 4,192,718
Small Cap Value 3.84% UBVFX Undiscovered Managers Behavioral Val R6 3,098,190
Small Cap Growth 3.85% RSEJX Victory RS Small Cap Growth R6 3,105,109
International Core 2.77% VEA Vanguard FTSE Developed Markets ETF 2,240,595
International Value 1.57% DODFX Dodge & Cox International Stock 1,267,982
International Growth 1.52% MGRDX MFS International Growth R6 1,227,918
Emerging Markets 4.33% HHHFX Hartford Schroders Emerging Mkts Eq F 3,495,261
Real Estate 1.76% VNQ Vanguard Real Estate ETF 1,417,124
Fixed Income 46.32% Range: 40%-60% 37,403,143
27.79% Core Fixed Income Portfolio 22,436,466
Short-Term 1.50% VFSUX Vanguard Short-Term Investment-Grade Adm 1,207,233
Intermediate-Term 7.91% PTTRX PIMCO Total Return Instl 6,387,271
7.90% PTRQX PGIM Total Return Bond R6 6,380,437
High Yield 1.23% PHIYX PIMCO High Yield Instl 991,737
Cash 0.51% Range: 0%-20% 412,367
0.51% FGZXX First American Government Oblig Z 412,367
TOTAL 100.00% $80,742,177
JHIGHMARK@
CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 9
Selected Period Performance
CCCSD - OPEB
Period Ending: 3/31/2021
Year Inception
to Date to Date
(3 Months) 1 Year 3 Years 5 Years 10 Years 04/01/2009
Cash Equivalents .01 .06 1.27 1.02 .52 .48
Lipper Money Market Funds Index .00 1.24 .95 .41
Fixed Income ex Funds -3.17 2.89 4.98
Total Fixed Income -3.20 3.80 4.89 3.63 3.52 4.53
BBG Barclays US Aggregate Bd Index -3.37 .71 4.65 3.10 3.44 3.93
Total Equities 6.76 63.68 14.42 15.12 11.36 14.76
Large Cap Funds 6.56 56.58 16.23 16.21 13.09 15.70
S&P 500 Composite Index 6.17 56.35 16.78 16.29 13.91 16.69
Mid Cap Funds 8.13 73.57 14.51 14.48 11.01
Russell Midcap Index 8.14 73.64 14.73 14.67 12.47 17.25
Small Cap Funds 10.40 98.94 16.14 17.16 13.48 18.29
Russell 2000 Index 12.70 94.85 14.76 16.35 11.68 16.39
International Equities 3.94 56.09 7.63 11.13 5.12 9.79
MSCI EAFE Index 3.48 44.57 6.02 8.85 5.52 9.34
MSCI EM Free Index 2.29 58.39 6.48 12.07 3.65 9.80
Real Estate - ETFs / Sctr Fds 8.80 37.21 11.43
Wilshire REIT Index 8.81 34.74 9.04 4.96 8.48 16.15
Total Managed Portfolio 1.95 30.13 9.82 9.39 7.46 9.65
CCCSD OPEB 2.26 28.56 9.51 8.95 7.48 9.59
Account Inception:412009
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%MIL 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.
J HIGHMARKO
CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 10
Investment Summary Since Inceptiori
CCCSD - Pension Beginning Value 3,359,081.81
Asset Allocation Contributions 6,903,627.65
Withdrawals -146,513.19
Total Assets: $12,161 ,563 Gain (Loss) 1,193,402.68
Interest and Dividends 852,066.63
Period Ending: 3/31/2021 Net Accrued Income 27,710.30
1 Q21 Return: -0.12% Ending Market Value $12,189,375.88*
1 Year Return: 18.39%
Inception-to-Date Return: 6.66% Cas$34, h
Inception Date:9-1-2017 0 28%24 Equity
$3,947,937
Plan target rate of return: 5.82% 32.460/,
Fixed Income
$8,179,103
67.250/,
* Ending Market Value differs from total market value on page 13 due to differences in reporting methodology. The above ending market value includes
accruals.
HIGHMARK®
CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 11
Asset Allocation - Central Contra Costa Sanitary District Pension
As of First Quarter 2021
Current Asset Allocation
Equity 32.46% Range: 20%-40% 3,947,937
Large Cap Core 6.00% IVV iShares Core S&P 500 ETF 729,602
4.21% VGIAX Vanguard Growth & Income Adm 512,463
Large Cap Value 3.04% IVE iShares S&P 500 Value ETF 369,343
Large Cap Growth 3.07% IVW iShares S&P 500 Growth ETF 373,862
Mid Cap Core 3.07% IWR iShares Russell Mid-Cap ETF 373,347
Small Cap Value 2.32% UBVFX Undiscovered Managers Behavioral Val R6 281,707
Small Cap Growth 2.32% RSEJX Victory IRS Small Cap Growth R6 282,255
International Core 1.76% VEA Vanguard FTSE Developed Markets ETF 213,825
International Value 1.51% DODFX Dodge & Cox International Stock 184,083
International Growth 1.28% MGRDX MFS International Growth R6 155,505
Emerging Markets 2.82% HHHFX Hartford Schroders Emerging Mkts Eq F 342,698
Real Estate 1.06% VNQ Vanguard Real Estate ETF 129,247
Fixed Income 67.25% Range: 50%-80% 8,179,103
45.99% Core Fixed Income Portfolio 5,592,673
Short-Term 2.69% VFSUX Vanguard Short-Term Investment-Grade Adm 326,898
Intermediate-Term 8.69% PTTRX PIMCO Total Return Instl 1,056,876
8.68% PTRQX PGIM Total Return Bond R6 1,055,157
High Yield 1.21% PHIYX PIMCO High Yield Instl 147,499
Cash 0.28% Range: 0%-20% 34,524
0.28% FGZXX First American Government Oblig Z 34,524
TOTAL 100.00% $12,161,563
JHIGHMARK@
CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 12
Selected Period Performance
PARS/CCCSD 115P - PENSION
Account 6746055901
Period Ending: 3/31/2021
Year Inception
to Date to Date
(3 Months) 1 Year 3 Years 09/01/2017
Cash Equivalents .01 .06 1.28 1.24
Lipper Money Market Funds Index .00 .08 1.20
Fixed Income ex Funds -3.18 2.48 4.92 3.72
Total Fixed Income -3.16 3.34 4.91 3.71
BBG Barclays US Aggregate Bd Index -3.37 .71 4.65 3.43
Total Equities 6.61 63.64 14.23 13.85
Large Cap Funds 6.53 56.57 16.23 15.70
S&P 500 Composite Index 6.17 56.35 16.78 16.34
Mid Cap Funds 8.14 73.34 14.60 14.51
Russell Midcap Index 8.14 73.64 14.73 14.78
Small Cap Funds 10.21 98.26 15.69 15.96
Russell 2000 Index 12.70 94.85 14.76 15.15
International Equities 3.95 56.00 7.66 8.12
MSCI EAFE Index 3.48 44.57 6.02 6.51
MSC/ EM Free Index 2.29 58.39 6.48 7.83
Real Estate - ETFs / Sctr Fds 8.78 33.51 10.65 6.77
Wilshire REIT Index 8.81 34.74 9.04 5.68
Total Managed Portfolio -.12 18.39 7.71 6.66
CCCSD Pension .35 16.99 7.44 6.63
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®
CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 13
CENTRAL CONTRA COSTA SANITARY DISTRICT
For Period Ending March 31 , 2021
EQUITYLARGE CAP
3-Month YTD 1-Year 3-Year 5-Ye a r 10-Yea r
Fund Name Inception Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank
iShares Core S&P 500 ETF (4/17) 6.17 53 6.17 53 56.31 53 16.74 26 16.25 23 13.86 12
iShares S&P 500 Value ETF (4/17) 10.69 58 10.69 58 50.10 70 11.65 32 12.13 38 10.96 35
Vanguard Growth& Income Adm (12/16) 6.92 39 6.92 39 58.55 41 16.31 36 15.86 35 13.97 9
iShares S&P 500 Growth ETF (4/17) 2.08 49 2.08 49 59.13 60 20.38 48 19.14 50 15.95 28
S&P 500 TR USD 6.17 -- 6.17 -- 56.35 -- 16.78 -- 16.29 - 13.91 EQUITY --
MID CAP
iShares Russell Mid-Cap ETF (3/16) 8.12 79 8.12 79 73.38 53 14.58 22 14.50 25 12.30 16
Russell Mid Cap TR USD 8.14 -- 8.14 -- 73.64 -- 14.73 -- 14.67 - 12.47 EQUITY --
SMALL CAP
Undiscovered Managers Behavioral Val R6 (9/16) 22.72 34 22.72 34 114.88 21 11.16 30 11.85 42 11.90 5
Russell 2000 Value TR USD 21.17 -- 21.17 -- 97.05 -- 11.57 13.56 -- 10.06 --
Victory IRS Small Cap Growth R6 (2/19) -2.56 95 -2.56 95 77.40 85 17.24 63 21.60 35 14.69 24
INTERNATIONAL •
Dodge&Cox International Stock 7.16 49 7.16 49 57.43 24 4.03 34 8.96 10 5.09 19
Vanguard FTSE Developed Markets ETF (9/18) 4.01 38 4.01 38 50.95 36 6.60 36 9.63 34 6.02 23
MFS International Growth R6 0.63 43 0.63 43 43.28 82 11.05 41 12.67 39 7.80 36
MSCI EAFE NR USD 3.48 -- 3.48 - 44.57 6.02 8.85 5.52
Hartford Schroders Emerging Mkts Eq F 3.54 43 3.54 43 66.93 32 8.97 22 14.90 15 5.14 27
IMSCI EM NR USD 2.29 -- 2.29 -- 58.39 -- 6.48 -- 12.07 -- 3.65 EQUITY --
REIT
Vanguard Real Estate ETF (4/17) 8.69 39 8.69 39 36.47 45 10.97 29 6.11 42 8.89 26
Wilshire REIT Index 8.81 -- 8.81 -- 34.74 -- 9.04 -- 4.96 -- 24.65 BOND FUNDS
PIMCO Total Return Instl -3.09 73 -3.09 73 3.25 85 4.89 52 3.84 45 3.75 55
PGIM Total Return Bond R6 (5/16) -4.44 98 -4.44 98 6.33 50 4.96 47 4.33 26 4.69 8
Vanguard Short-Term Investment-Grade Adm -0.47 71 -0.47 71 6.36 43 4.01 15 2.93 22 2.64 16
BBgBarc US Agg Bond TR USD -3.37 -- -3.37 - 0.71 4.65 -- 3.10 -- 3.44 --
PIMCO High Yield Instl (12/20) 0.06 86 0.06 86 18.49 76 6.21 33 6.76 47 5.82 27
ICE BofA US High Yield Mstr II Index 0.90 -- 0.90 -- 23.31 -- 6.53 -- 7.94 -- 13.60 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.
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CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 14