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HomeMy WebLinkAbout05.a. Receive quarterly Highmark overview and OPEB and Pension sub0trust report Page 1 of 23 Item 5.a. ,orVIOIN SAN August 24, 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: RECEIVE HIGHMARK OTHER POST-EMPLOYMENT BENEFITS (OPEB) AND PENSION PREFUNDING SUB-TRUST REPORTS FOR THE SECOND 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 June 30, 2021. Andrew Brown, Central San's Investment Manager at Highmark, 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 quarterly returns of 4.68% and 2.56% for Central San's OPEB and Pension Pre-funding sub- trusts, respectively. The long-term targeted returns are 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 9.85% and 6.92% 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). As approved by the Board recently, nearly the entire balance of the Pension Pre-funding trust was liquidated to help finance the payoff of Central San's unfunded actuarially accrued liability (UAAL)totaling approximately$70.8 million. Following the payoff of the UAAL in late June 2021, a residual amount of $47,079.50 was reported in the trust on June 30, 2021. The Pension Trust will be kept in place in the coming years, and as funding becomes available through budget to actual variances, or from other sources, the Board may decide to direct additional contributions to the Trust. 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 the Second Quarter of 2021 2. PARS Investment Report Second Quarter of 2021 August 24, 2021 Special FINANCE Committee Meeting Agenda Packet- Page 121 of 151 Page 2 of 23 Attachment 1 JHIGHMARKO CAPITAL MANAGEMENT July 20, 2021 Phil Leiber Director of Finance and Administration Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553-4392 RE: 2Q Quarter 2021 OPEB/Pension Report Dear Mr. Leiber, Market Commentary Brushing aside mounting concerns about higher inflation and a more contagious Covid variant spreading around the world, investors bought assets of almost any stripe in the second quarter. For the fifth consecutive quarter, global equities marched higher as corporate earnings continued a strong recovery that outperformed already lofty expectations. In a bid to hedge potential inflation risk, asset classes like commodities and real estate' have seen increasing demand this year, leading to strong performance. Meanwhile, the bond market rallied throughout most of the second quarter and snapped its trend of rising interest rates that began last August. Global equities closed the second quarter at record highs, capping off a strong first half of 2021 that saw shares advance 12.8 percent.' Bullish sentiment was buoyed by the accelerating pace of vaccine distribution globally, leading to further lifting of pandemic- related economic restrictions. Worry about elevated valuation levels stayed on the back burner as domestic based retail investors continued to find paltry yields offered in the bond market. U.S. stocks carried the torch in the second quarter, outperforming international equity markets.3 However, in a pivot from the prior two quarters, sectors with more sensitivity to the strength of the economic cycle took a backseat to more secular growth-oriented areas as questions emerged about the sustainability of fiscal and monetary policy support. Falling long-term interest rates also reflected the possibility of a premature moderation in fiscal and monetary stimulus. The rate on the bellwether 10-year Treasury note fell 30 basis points from 1.74 percent at the end of March to 1.44 percent by the end of June. A flattening of the yield curve, as measured by the spread between longer- and shorter- maturity bonds, and further compression in credit spreads helped the bond market post healthy returns in the second quarter after fighting a steepening curve over the prior ten months. ' The Bloomberg Commodity Index returned 21.15 percent and the S&P U.S. REIT Index returned 21.70 percent for the year-to-date period ending June 30, 2021. ' S&P Global Broad Market index including dividends 3 The S&P 500 Index returned 8.55 percent in the second quarter versus international stocks as represented by MSCI EAFE which returned 5.17 percent over the same period. August 24, 2021 Special FINANCE Committee Meeting Agenda Packet- Page 122 of 151 Page 3 of 23 Attachment 1 Economic Enigma At first glance, falling interest rates seem counterintuitive amid the highest inflation readings seen in decades. After all, it makes sense that investors should demand higher -- not lower-- yields if inflation is heating up. But it's the second derivative of inflation that has the market's attention. Namely, the implications for future economic policy and ultimately growth potential. From toilet paper shortages to soaring home prices, the global pandemic has brought with it many atypical economic phenomena. Wild swings in both supply and demand across virtually all assets, goods and services have kept economists perplexed as to what current economic data says about the future. What began with fears of a deflationary death spiral at the onset of the pandemic had completed a one-eighty into worries over out-of-control inflation entering the second quarter of 2021. An unprecedented fiscal and monetary policy response to a rare, but economically devastating, event has muddied the economic waters by stirring up questions about a sustainable long-term equilibrium for both growth and inflation. A key question for the U.S. economy and financial markets alike centers on the inflation outlook and its implications for monetary policy. The Federal Reserve (Fed) has been keenly focused on achieving a full labor market recovery while relaxing its mandate to keep prices in check under its recently revised policy-making framework. However, the exact length of the longer inflation leash remains in question as a surge in reopening demand is met by supply chain disruptions. Prior to the pandemic, the Fed consistently undershot its stated goal of 2 percent inflation despite what at the time was the largest expansion of its balance sheet in history following the Global Financial Crisis. Embedded in the Fed's mindset was that monetary policy impacted longer-term inflation, but with a lagged effect. In other words, they felt it was necessary to be more proactive than reactive to the price stability mandate. Recognizing a disconnect between the academic assumptions about the impact of monetary policy on inflation and employment and the empirical experience, policy makers decided they had some cover to see how far they could push the limits of monetary policy to address the current crisis. Under the new framework, the U.S. central bank now aims to "achieve inflation that averages 2 percent over time"' (emphasis added), while also seeking broader-based positive employment outcomes. This simple yet significant change opened the door for inflation targeting "moderately above 2 percent for some time" to compensate for the prior cycle's underachievement. May's Core Personal Consumption Expenditures Index (the Fed's preferred inflation marker), along with other inflation measures, came in well above expectations and at levels not seen in decades. This data was taken in stride by policy makers and financial markets with the expectation that current data is not necessarily indicative of a longer- term trend. As evidence of the transitory nature of the spike in prices, economists point a Federal Reserve Board-2020 Statement on Longer-Run Goals and Monetary Policy Strategy August 24, 2021 Special FINANCE Committee Meeting Agenda Packet- Page 123 of 151 Page 4 of 23 Attachment 1 to items like used car prices, which are surging as a knock-on effect of the supply chain disruption in the new car market. The Fed's employment bogey is clearer. 6.8 million fewer Americans are employed relative to pre-pandemic levels.'Achieving the objective of bringing that number closer to zero, or what the Fed deems "maximum employment", hit a snag as the pace of hiring fell short of expectations in April and May despite job openings and quit rates hitting new highs. Explanations for the failure to meet the increasing demand for labor ranged from enhanced unemployment benefits to caregiving challenges to ongoing pandemic fear. In reality, the shortfall appears to be a combination of these factors. June's increase of 850,000 non-farm payrolls relieved some concerns that the pace of hiring was off track after two consecutive disappointing months.6 Most encouragingly, employment in the sector most impacted by the pandemic, leisure and hospitality, saw the lion's share of growth with 343,000 new jobs added in June.' However, the nearly 2 million Americans that have left the workforce in the wake of the pandemic present a troublesome obstacle to achieving a full labor market recovery.a The "transitory" inflation narrative firmly planted in the market's psyche prompted close scrutiny of June's Federal Open Market Committee (FOMC) meeting for hints as to when monetary policy accommodation will be weaned from the system. Heightened attention was paid to the survey of FOMC members' projections, also known as the "Dot Plot", that suggested the timeline for tapering quantitative easing and eventual rate hikes could be shorter than previously expected. In his press conference following the FOMC meeting, Chairman Powell was quick to downplay this shift in expectations by saying the projections should be "taken with a grain of salt", and reinforcing the highly uncertain speed of the recovery given the unusual nature of the downturn in the economy. However, reading between the lines, one might suspect that the FOMC voting members are a least thinking about tapering despite comments to the contrary.' Forecasting future economic conditions is always challenging and this cycle's unique forces in both directions makes that endeavor even more difficult. At the foundation of the "wall of worry" for investors today remains the central bank's ability to support the recovery. Should the inflation outlook shift from being transitory to something longer lasting, it will likely have major implications for Fed policy and subsequently all financial assets. More specifically, it might force the Fed to confront the paradox of having to tap the breaks to curtail inflation before the economy gets fully back on its feet. Having learned important lessons from the 2013 "taper tantrum" and 2018's "autopilot" remarks, the Fed is keenly aware of the market's sensitivity to not only its policy actions, 5 Source: U.S. Bureau of Labor Statistics e Source: U.S. Bureau of Labor Statistics 'Source: U.S. Bureau of Labor Statistics s U.S. Bureau of Labor Statistics, Employment Situation Summary,July 2,2021 9 Chairman Powell reiterated that the Fed is"not even thinking about thinking about raising rates"at the post FOMC meeting press conference. August 24, 2021 Special FINANCE Committee Meeting Agenda Packet- Page 124 of 151 Page 5 of 23 Attachment 1 but also to mere guidance on what it might do in the future. For this reason, we expect the Fed to be extremely careful about when and how it introduces a pivot toward removing accommodation. There is no ambiguity about the delicate co-dependency between financial markets and the real economy— a reality policy makers cannot afford to ignore. Looking Ahead Heading into the back half of 2021 we expect a continuation of the global economic momentum driving the speedy recovery in corporate fundamentals, while we are keeping a close eye out for potential catalysts that would alter the global economy's longer-term trajectory. Despite our sanguine economic outlook, corporate earnings expectations have already reset to reflect a fairly optimistic scenario and comparisons to prior periods will become more challenging. For this reason, we believe the pace of appreciation in equity markets over the first half- year is unlikely to be maintained in the second half. We remain most constructive on the more economically sensitive areas of the equity market, including energy, financials and industrials, that appear heavily discounted compared to more defensive peers in the healthcare, consumer staples, and technology sectors. Within fixed income markets we expect intermediate to longer maturity interest rates to retrace their recent move lower and restart their upward trajectory as the global glut of liquidity slowly diminishes. Further, while corporate fundamentals continue to improve, increased merger and acquisition activity, dividend payouts and share buybacks could become a limiting factor to that trend. Given the already low risk premiums offered, we foresee limited opportunity for additional credit spread compression. Among the most significant risks to our outlook and the current narrative in general is the fragile feedback loop between economic data and monetary policy discussed above. More specifically, the Fed's pragmatism could be tested if inflation starts to look less than transitory. While some recent drivers of higher inflation readings are indeed likely to fade, other variables have the potential to take the baton and flip the script on the transitory story. Perhaps the most notable of those variables is rent, which represents about a third of the Consumer Price Index calculation and has yet to meaningfully accelerate despite a record surge in home prices. Plan Performance The Central Contra Costa Sanitary District OPEB Plan gained 4.68% gross of investment fees for the second quarter, which exceeded the Plan's benchmark target of 4.3%. The continued strength in the equity market and an overweight to equities, propelled Plan returns in the quarter, with the equity segment returning 6.73%. Despite the strong contribution from stocks, a modest detractor to `relative' performance came from small cap equities, international equities, and REITs. While all of these categories generated positive performance, they all slightly underperformed their respective benchmark targets. The fixed income segment gained 2.21%, which exceeded the Bloomberg Barclays US Aggregate Bond Index return of 1.83%. Credit spreads continue to tighten, supported by the continued recovery of the economy. Consumer August 24, 2021 Special FINANCE Committee Meeting Agenda Packet- Page 125 of 151 Page 6 of 23 Attachment 1 confidence and a recovery in earnings helped the bond market recover some of the losses incurred in the first quarter of the year. Fixed income performance was supported by all three intermediate-term bond managers outperforming the Barclays Aggregate benchmark. Additionally, performance was aided by the Pimco High-Yield Bond Fund, which gained 2.48% in the quarter. However, gains from high-yield were offset by the modest 0.68% return from the Vanguard Short-Term Investment Grade Bond Fund. We ended the quarter with a target asset allocation of 53% stocks, 46% bonds and 1% cash for the OPEB Plan. There were no changes to investment managers in the quarter. The Central Contra Costa Sanitary District Pension Plan gained 2.56% in the quarter, gross of investment fees, which trailed the District's Plan benchmark target of 3.12%. At the end of the quarter, we raised funds for a transfer to CCCERA. Andrew Brown August 24, 2021 Special FINANCE Committee Meeting Agenda Packet- Page 126 of 151 Attachment 2 PARS: Central Contra Costa Sanitary District OPEB and Pension Plan Second Quarter 2021 Presented by Andrew Brown, CFA JHIGHMARKO CAPITAL MANAGEMENT Attachment 2 Investment Summary Since Inceptiori CCCSD - OPEB Beginning Value 566,683.26 Asset Allocation Contributions 106,868,981.39 Withdrawals -65,003,573.52 Total Assets: $84,476,545 Gain (Loss) 24,683,465.73 Interest and Dividends 17,361,554.25 Period Ending: 6-30-2021 Net Accrued Income 124,644.72 2Q21 Return: 4.68% Ending Market Value $84,601,755.83"'- 1 84,601,755.83*1 Year Return: 21 .42% Inception-to-Date Return: 9.85% Cash Inception Date:4-1-2009 $843,921 1.000]0 Plan target rate of return: 6.25% Equity $44,784,574 53010/, Fixed Income $38,848,050 45.990]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. J HIGHMARK® CAPITAL MANAGEMENT Attachment 2 Asset Allocation - Central Contra Costa Sanitary District OPEB As of Second Quarter 2021 Current Asset Allocation Investment Vehicle Equity 53.01% Range: 40%-60% 44,784,574 Large Cap Core 10.05% IVV iShares Core S&P 500 ETF 8,491,780 7.11% VGIAX Vanguard Growth & Income Adm 6,006,470 Large Cap Value 5.53% IVE iShares S&P 500 Value ETF 4,668,229 Large Cap Growth 5.03% IVW iShares S&P 500 Growth ETF 4,253,323 Mid Cap Core 5.11% IWR iShares Russell Mid-Cap ETF 4,317,312 Small Cap Value 3.69% UBVFX Undiscovered Managers Behavioral Val R6 3,118,774 Small Cap Growth 3.74% RSEJX Victory RS Small Cap Growth R6 3,156,774 International Core 3.73% VEA Vanguard FTSE Developed Markets ETF 3,151,788 International Value 1.46% DODFX Dodge & Cox International Stock 1,232,977 International Growth 1.56% MGRDX MFS International Growth R6 1,314,033 Emerging Markets 4.26% HHHFX Hartford Schroders Emerging Mkts Eq F 3,596,549 Real Estate 1.75% VNQ Vanguard Real Estate ETF 1,476,566 Fixed Income 45.99% Range:40%-60% 38,848,050 27.96% Core Fixed Income Portfolio 23,621,779 Short-Term 1.44% VFSUX Vanguard Short-Term Investment-Grade Adm 1,215,476 Intermediate-Term 7.65% PTTRX PIMCO Total Return Instl 6,465,526 7.73% PTRQX PGIM Total Return Bond R6 6,528,966 High Yield 1.20% PHIYX PIMCO High Yield Instl 1,016,304 Cash 1.00% Range: 0%-20% 843,921 1.00% FGZXX First American Go\/ernment Oblig Z 843,921 TOTAL 100.00% $84,476,545 JHIGHMARKO CAPITAL MANAGEMENT Attachment 2 Selected Period Performance CCCSD - OPEB Period Ending: 6/30/2021 Year Inception to Date to Date 3 Months (6 Months) 1 Year 3 Years 5 Years 10 Years 04/01/2009 Cash Equivalents .01 .01 .03 1.14 1.00 .52 .47 Lipper Money Market Funds Index .00 .00 .01 1.11 .95 .48 .40 Fixed Income ex Funds 2.06 -1.18 .67 5.75 Total Fixed Income 2.21 -1.05 1.33 5.74 3.60 3.57 4.62 BBG Barclays US Aggregate Bd Index 1.83 -1.60 5.34 3.03 3.39 4.00 Total Equities 6.73 13.94 44.11 16.05 16.25 12.08 15.05 Large Cap Funds 8.31 15.41 40.91 18.13 17.78 14.03 16.11 S&P 500 Composite Index 8.55 15.25 40.79 18.67 17.65 14.84 17.10 Mid Cap Funds 7.36 16.09 49.41 16.31 15.28 11.72 Russell Midcap Index 7.50 16.25 49.80 16.45 15.62 13.24 17.56 Small Cap Funds 3.90 14.70 60.58 14.85 17.30 13.98 18.26 Russell 2000 Index 4.29 17.54 62.03 13.52 16.47 12.34 16.43 International Equities 4.46 8.58 38.46 11.01 12.12 5.48 9.98 MSCI EAFE Index 5.17 8.83 32.35 8.27 10.28 5.89 9.59 MSCI EM Free Index 5.05 7.45 40.90 11.27 13.03 4.28 10.03 RR: RE ITS 11.55 21.31 34.49 11.24 Wilshire REIT Index 12.84 22.78 37.52 10.06 6.36 9.38 16.94 Total Managed Portfolio 4.68 6.73 21.42 11.11 9.97 7.86 9.85 CCCSD OPEB 4.30 6.66 20.50 10.52 9.43 7.83 9.76 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%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. J HIGHMARKO CAPITAL MANAGEMENT Attachment 2 Fixed Income Portfolio: Statistics As of Second Quarter 2021 CCCSD BC Aggregate Bond OPEB Index Weighted Average Maturity 7.12 years 8.17 years Effective Duration 5.67 years 6.28 years Average Coupon 2.63% 2.56% Yield to Maturity 1.60% 1.38% Average Quality Aa3 Aa2 J HIGHMARK® CAPITAL MANAGEMENT Source: BondEdge Attachment 2 Fixed Income Portfolio: Sectors As of Second Quarter 2021 40.0% 35.0% I 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% id 0.0% Cash Treasury Agency Corp Non-Corp MBS CM❑ ABS CMBS ■CCCS❑❑PEB 0.0% 28.8% 0.0% 34.8% 0.7% 22.3% 0.0% 12.7% 0.7% ■Barclays U.S.Aggregate Bond Index 0.0% 37.3% 1.5% 26.2% 4.4% 28.2% 0.0% 0.3% 2.2% JHIGHMARKO CAPITAL MANAGEMENT Source: BondEdge Attachment 2 Fixed Income Portfolio: Effective Duration and Effective Maturity As of Second Quarter 2021 Effective Duration Effective Maturity 35% 40°/° 35°/° 30% 30°/° 25°/° 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. ■CCC5D OP EB 9.12% 25.99% 26.05% 9.66% 16.12% 13.05% ■CCCSD OPEB 9.86% 16.64% 31.15% 12.11% 16.17% 14.06% BC Aggregate Bond Index 0.38% 35.56% 24.74% 13.33% 7.75% 18.24% BC Aggregate Bond Index 0.32% 24.05% 29.23% 14.96% 12.54% 18.89% JHIGHMARKO CAPITAL MANAGEMENT Source: BondEdge Attachment 2 Holdings-Reporting as of Trade Date Account:6746055900-PARS/CCCSD 115P-OPEB As of:30-Jun-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 25,157.6650 $49.0100 $1,232,977.16 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 166,045.6760 $21.6600 $3,596,549.34 Equities ISHARES RUSSELL MIDCAP ETF IWR 54,484.0000 $79.2400 $4,317,312.16 Equities ISHARES S&P 500 GROWTH ETF IVW 58,481.0000 $72.7300 $4,253,323.13 Equities ISHARES S&P 500 VALUE ETF IVE 31,619.0000 $147.6400 $4,668,229.16 Equities ISHARES TR CORE S&P500 ETF IVV 19,752.0000 $429.9200 $8,491,779.84 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 28,609.4620 $45.9300 $1,314,032.59 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 37,909.0080 $82.2700 $3,118,774.09 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 61,176.0000 $51.5200 $3,151,787.52 Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 55,600.0160 $108.0300 $6,006,469.73 Equities VANGUARD REAL ESTATE ETF VNQ 14,506.0000 $101.7900 $1,476,565.74 Equities VICTORY RS SM CAP GROW#279 RSEJX 30,388.6590 $103.8800 $3,156,773.90 Fixed Income PIMCO HIGH YIELD,INSTL #108 PHIYX 111,559.1800 $9.1100 $1,016,304.13 Fixed Income PIMCO TOTAL RETURN INSTL #35 PTTRX 622,883.0100 $10.3800 $6,465,525.64 Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 444,449.6720 $14.6900 $6,528,965.68 Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 110,901.0630 $10.9600 $1,215,475.65 Fixed Income AMERICREDIT AUTO REC 3.580%10/18/24 AAR3524A 140,000.0000 102.032% $142,844.80 Fixed Income ATHENE GLOBAL FNDNG 2.550% 6/29/25 AGF2525A 140,000.0000 104.748% $146,647.20 Fixed Income CITIGROUP INC SR NT 6/09/27 CIS0027A 160,000.0000 99.570% $159,312.00 Fixed Income UNITED STATES TREA 0.00001%10/31/25 UST0025C 215,000.0000 97.770% $210,205.50 Fixed Income UNITED STATES TREAS 0.000% 3/31/26 UST0026B 498,000.0000 99.551% $495,763.98 Fixed Income UNITED STATES TREAS 0.125% 1/31/23 UST0023G 570,000.0000 99.902% $569,441.40 Fixed Income UNITED STATES TREAS 0.125% 3/31/23 UST00231 100,000.0000 99.848% $99,848.00 Fixed Income UNITED STATES TREAS 0.125%12/15/23 UST0123E 246,000.0000 99.473% $244,703.58 Fixed Income UNITED STATES TREAS 0.250% 6/15/24 UST0224B 228,000.0000 99.391% $226,611.48 Fixed Income UNITED STATES TREAS 0.375%11/30/25 UST0025D 275,000.0000 98.199% $270,047.25 Fixed Income UNITED STATES TREAS 0.500% 2/28/26 UST0026A 129,000.0000 98.484% $127,044.36 Fixed Income UNITED STATES TREAS 1.500%10/31/21 UST0021B 190,000.0000 100.479% $190,910.10 Fixed Income UNITED STATES TREAS 0.0001% 5/31/26 UST0026D 110,000.0000 99.430% $109,373.00 Fixed Income US TREAS NTS 1.875% 4/30/22 UST0022A 100,000.0000 101.484% $101,484.00 Fixed Income VERIZON COMMUNICATIO 2.987%10/30/56 VC22956A 118,000.0000 94.004% $110,924.72 Fixed Income ACACN 2015-1A NTS 3.600% 9/15/28 A21\13627 144,908.9600 101.659% $147,313.00 JHIGHMARK@ CAPITAL MANAGEMENT Attachment 2 Holdings-Reporting as of Trade Date Account:6746055900-PARS/CCCSD 115P-OPEB As of:30-Jun-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income ALASKA AIRLINES EQ 4.800% 2/15/29 AAE4829 124,904.7600 110.642% $138,197.12 Fixed Income ANDEAVOR SR GLBL 4.750%12/15/23 TC44723 185,000.0000 107.015% $197,977.75 Fixed Income AT&T INC GLBL NT 3.500% 6/01/41 AIG3541 260,000.0000 103.877% $270,080.20 Fixed Income ATT 2013-1-22A 3.070% 3/15/48 A233048 155,000.0000 100.486% $155,753.30 Fixed Income AVIATION CAP GROUP 1.950% 1/30/26 ACG1926 165,000.0000 100.027% $165,044.55 Fixed Income BANK OF AMERICA CORP 3.194% 7/23/30 BOA3130 206,000.0000 107.656% $221,771.36 Fixed Income BELL 2018-1 A21 4.318%11/25/48 132A4348 131,625.0000 100.214% $131,906.68 Fixed Income BERKSHIRE HATHAWAY 2.850%10/15/50 BH22850 105,000.0000 99.820% $104,811.00 Fixed Income BOEING CO CR SEN SR 2.196% 2/04/26 BCC2126 175,000.0000 100.956% $176,673.00 Fixed Income BRITISH AIRWAYS 20134.625%12/20/25 BA24625 64,821.0800 105.440% $68,347.35 Fixed Income CAPITALONECCTR 1.720% 8/15/24 C000024 250,000.0000 101.722% $254,305.00 Fixed Income CUBESMART L P SR NT 2.000% 2/15/31 CLP2031 130,000.0000 97.166% $126,315.80 Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 77,000.0000 129.888% $100,013.76 Fixed Income DARDEN RESTAURANTS 4.550% 2/15/48 DR44548 175,000.0000 117.356% $205,373.00 Fixed Income DEVON ENERGY CORP NE 4.500% 1/15/30 DEC4530 52,000.0000 109.940% $57,168.80 Fixed Income DNKN 2017-1AA211 4.030%11/20/47 D2A4047 178,987.5000 106.515% $190,648.54 Fixed Income ENERGY TRANSFER OPER 5.800% 6/15/38 ETO5838 125,000.0000 124.318% $155,397.50 Fixed Income F&G GLOBAL FUNDI 1.750% 6/30/26 FGF1726 140,000.0000 100.412% $140,576.80 Fixed Income FAIRFAX US INC 4.875% 8/13/24 FU14824 115,000.0000 109.372% $125,777.80 Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 92,749.5900 104.906% $97,299.88 Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 132,533.6600 106.750% $141,479.68 Fixed Income FGLMC#J30401 3.000% 1/01/30 J30401F 98,234.7200 106.170% $104,295.80 Fixed Income FGLMC#Q13204 3.000%11/01/42 Q13204F 96,963.5200 107.112% $103,859.57 Fixed Income FHLMCG08823 3.500% 7/01/48 G08823F 104,851.2500 105.536% $110,655.82 Fixed Income FHLMC G14702 2.5000%3/1/2023 G14702F 35,496.0200 104.302% $37,023.06 Fixed Income FHLMC G15252 3.000%12/01/29 G15252F 85,568.8900 106.177% $90,854.48 Fixed Income FHLMCQ38373 3.500% 1/01/46 Q38373F 76,488.5400 107.839% $82,484.48 Fixed Income FHLMC RB5091 2.500%11/01/40 RB5091A 377,986.9500 103.816% $392,410.93 Fixed Income FHLMC SB0380 3.500% 2/01/34 SB0380A 111,939.8900 107.934% $120,821.20 Fixed Income FHLMCSB8006 3.000% 9/01/34 SB8006A 111,326.2100 105.345% $117,276.60 Fixed Income FHLMCV605863.0000%8/1/2029 V60586F 92,421.6500 106.047% $98,010.39 Fixed Income FIRST HORIZON CORPOR4.000% 5/26/25 FHC4025 145,000.0000 110.168% $159,743.60 JHIGHMARK@ CAPITAL MANAGEMENT Attachment 2 Holdings-Reporting as of Trade Date Account:6746055900-PARS/CCCSD 115P-OPEB As of:30-Jun-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FLOWERS FOODS INC SR 2.400% 3/15/31 FF12431 125,000.0000 100.191% $125,238.75 Fixed Income FNMA#MA3238 3.500%11/01/47 MA3238A 63,014.2900 105.726% $66,622.49 Fixed Income F N MA A L8174 3.5000%2/1/2046 AL8174A 181,976.5400 108.066% $196,654.77 Fixed Income FNMA A L8924 3.0000%12/1/2030 AL8924A 148,937.3300 105.326% $156,869.73 Fixed Income F N MA A L9376 3.0000%8/1/2031 AL9376A 83,399.3400 106.431% $88,762.75 Fixed Income FNMA AL9861 3.000% 8/01/30 AL9861A 208,741.5900 105.651% $220,537.58 Fixed Income FNMA AS4916 3.000% 5/01/30 AS4916A 146,339.1800 105.785% $154,804.90 Fixed Income FNMA AS7729 3.0000%8/1/2046 AS7729A 137,946.0700 106.232% $146,542.87 Fixed Income FNMA AT0293 3.0000%3/1/2043 AT0293A 91,433.2400 107.068% $97,895.74 Fixed Income FNMA BC 14863.0000%8/1/2046 BC1486A 130,747.9300 106.334% $139,029.50 Fixed Income FNMA BM4913 3.000% 5/01/46 BM4913A 74,687.6000 106.258% $79,361.55 Fixed Income FNMA CA6348 2.500% 7/01/50 CA6348A 252,539.4500 103.557% $261,522.28 Fixed Income FNMA CA6638 2.500% 8/01/50 CA6638A 327,429.0200 103.527% $338,977.44 Fixed Income FNMA CA6801 2.500% 8/01/50 CA6801A 350,007.9200 103.527% $362,352.70 Fixed Income FNMA CA7231 2.500%10/01/50 CA7231A 289,291.0700 103.616% $299,751.84 Fixed Income FNMA FM3494 2.500% 4/01/48 FM3494A 142,734.3900 103.775% $148,122.61 Fixed Income FNMA MA2730 2.500% 8/01/46 MA2730A 337,257.7300 103.527% $349,152.81 Fixed Income FNMA MA27792.0000%10/1/2026 MA2779A 63,920.9600 103.227% $65,983.69 Fixed Income FNMA MA2895 3.000% 2/01/47 MA2895A 84,761.4000 105.228% $89,192.73 Fixed Income FNMA MA3210 3.500%11/01/47 MA3210A 59,894.8400 105.769% $63,350.17 Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 48,530.3200 107.200% $52,024.50 Fixed Income FNMA MA3332 3.500% 3/01/48 MA3332A 82,296.4300 105.713% $86,998.03 Fixed Income FNMA MA3489 3.500%10/01/33 MA3489A 47,575.7900 106.996% $50,904.19 Fixed Income FNMA MA3536 4.000%12/01/48 MA3536A 23,525.9100 106.540% $25,064.50 Fixed Income FNMA MA4123 2.000% 9/01/35 MA4123A 239,550.7200 103.227% $247,281.02 Fixed Income FORD CR AUTO OWN TR 1.870% 3/15/24 FCA0024 144,826.8900 101.136% $146,472.12 Fixed Income FORD CREDIT FLRPLN 3.040% 3/15/24 FCF3024 145,000.0000 101.881% $147,727.45 Fixed Income GENERAL MTRS F I N L CO 4.000%10/06/26 GMF4026 160,000.0000 110.402% $176,643.20 Fixed Income GM FINLAUTO LEASE 2.040%12/20/23 GFA2023 235,000.0000 101.648% $238,872.80 Fixed Income GOLDMAN SACHS BIDS 3.691% 6/05/28 GSB3628 110,000.0000 110.411% $121,452.10 Fixed Income HASBRO INC 3.550%11/19/26 H133526 100,000.0000 109.612% $109,612.00 Fixed Income HCA INC NTS 5.375% 2/01/25 HIN5325 105,000.0000 112.800% $118,440.00 JHIGHMARK@ CAPITAL MANAGEMENT Attachment 2 Holdings-Reporting as of Trade Date Account:6746055900-PARS/CCCSD 115P-OPEB As of:30-Jun-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income HONDA AUTO RECV 20183.160% 8/19/24 HAR3124 150,000.0000 100.807% $151,210.50 Fixed Income HYUNDAI AUTO LEASE 1.900% 5/15/22 HAL1922 32,085.6500 100.068% $32,107.47 Fixed Income LOS ANGELES REV BDS 6.574% 7/01/45 LAR6545 100,000.0000 161.953% $161,953.00 Fixed Income MACQUARIE GROUP LTD 1.340% 1/12/27 MGL1327 90,000.0000 99.160% $89,244.00 Fixed Income MOTOROLA SOLUTIONS 5.500% 9/01/44 MS55544 95,000.0000 130.251% $123,738.45 Fixed Income MVW 2020-1 1.740%10/20/37 M211737 214,967.0900 101.907% $219,066.51 Fixed Income NATIONAL FUEL GAS CO 0.000% 3/01/31 N FG0031 145,000.0000 100.580% $145,841.00 Fixed Income NGPLPIPECOLLCSR 3.250% 7/15/31 NPL3231 135,000.0000 103.063% $139,135.05 Fixed Income ONE GAS INC SR NT 1.100% 3/11/24 OG11124 175,000.0000 100.069% $175,120.75 Fixed Income PACIFIC GAS&ELEC 3.150% 1/01/26 PGE3126 125,000.0000 103.143% $128,928.75 Fixed Income PENN MUTUAL LIFE INS 3.800% 4/29/61 PML3861 175,000.0000 103.470% $181,072.50 Fixed Income PHYSICIANS RLTY LP 3.950% 1/15/28 PRL3928 170,000.0000 109.771% $186,610.70 Fixed Income SANTANDER RENGATUN 2.800% 1/26/32 SRA2832 145,000.0000 105.110% $152,409.50 Fixed Income SANTAN DER RETAI L ALIT 3.660% 5/20/24 SRA3624 270,000.0000 102.065% $275,575.50 Fixed Income SBA TOWER TRUST 1.631% 5/15/51 STT1651 140,000.0000 99.976% $139,966.40 Fixed Income SCHWAB CHARLES F/R 4.000% SCC0049 145,000.0000 104.250% $151,162.50 Fixed Income STI FEL FINLCORP SR 4.000% 5/15/30 SFC4030 160,000.0000 110.762% $177,219.20 Fixed Income TAOT2019-CA3MTGE 1.910% 9/15/23 T2A1923 176,164.3700 100.964% $177,862.59 Fixed Income TIME WARNER CABLE NT 7.300% 7/01/38 TWC7338 125,000.0000 146.043% $182,553.75 Fixed Income TOYOTA AUTO RECV OWN 2.520% 5/15/23 TAR2523 91,102.5000 100.747% $91,783.04 Fixed Income TRI-STATE GENERATION 6.000% 6/15/40 TG66040 115,000.0000 135.189% $155,467.35 Fixed Income TRITON CONTAINER INT 3.150% 6/15/31 TCI3131 135,000.0000 100.587% $135,792.45 Fixed Income UNITEDAIR 14-2A 3.750% 9/03/26 UA13726 103,567.4500 105.685% $109,455.26 Fixed Income UNITED STATES TREAS 0.375% 1/31/26 UST0026 82,000.0000 97.996% $80,356.72 Fixed Income UNITED STATES TREAS 0.750% 1/31/28 UST0728 900,000.0000 97.356% $876,204.00 Fixed Income UNITED STATES TREAS 1.625% 5/15/31 UST1631 1,404,000.0000 101.531% $1,425,495.24 Fixed Income UNITED STATES TREAS 1.625%10/31/26 UST1626 150,000.0000 103.574% $155,361.00 Fixed Income UNITED STATES TREAS 1.875% 2/15/41 UST1841 284,000.0000 97.891% $278,010.44 Fixed Income UNTD AIR 2013-1 4.300% 8/15/25 UA24325 169,470.5900 105.762% $179,235.49 Fixed Income VERIZON OWNERTR 1.940% 4/20/24 VOT0024 400,000.0000 101.415% $405,660.00 Fixed Income WESTLAKE AUTO RECV 4.000%10/16/23 WAR4023 160,000.0000 101.682% $162,691.20 Fixed Income WORLD OMNI AUTO 2.500% 4/17/23 WOA2523 99,138.3100 100.575% $99,708.36 JHIGHMARK@ CAPITAL MANAGEMENT Attachment 2 Holdings-Reporting as of Trade Date Account:6746055900-PARS/CCCSD 115P-OPEB As of:30-Jun-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income ANHEUSER-BUSCH INBEV WLDW IN BUD/42 125,000.0000 126.673% $158,341.25 Fixed Income BLOCK FIN LCORP BIDS 5.250%10/01/25 HRB/25 135,000.0000 113.628% $153,397.80 Fixed Income HESS CORP HES/33 175,000.0000 135.557% $237,224.75 Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 120,000.0000 143.557% $172,268.40 Fixed Income PLAINS ALL AMERN PIP 6.700% 5/15/36 PAA36 140,000.0000 122.546% $171,564.40 Fixed Income AMERICAN HOMES 4 REN 4.250% 2/15/28 130,000.0000 111.976% $145,568.54 Fixed Income BOARDWALK PIPELINES 4.800% 5/03/29 125,000.0000 115.077% $143,846.25 Fixed Income BRITISH AIRWAYS PLC 3.300% 6/15/34 106,140.5100 101.722% $107,968.25 Fixed Income DELTA AIR LINES 2.500%12/10/29 109,156.9400 101.510% $110,804.88 Fixed Income FEDERAL EX CORP 1.875% 8/20/35 141,123.2400 99.225% $140,029.53 Fixed Income JPMORGAN CHASE&CO 3.650% 155,000.0000 100.140% $155,217.00 Fixed Income SPIRITAIRLINES2017-1 92,299.1800 98.009% $90,461.50 Fixed Income TRUISTFINLCORP F/R 5.125% 115,000.0000 107.250% $123,337.50 Fixed Income UNITED STATES TREAS 1.875% 2/15/51 564,000.0000 95.438% $538,270.32 Fixed Income US TREAS NTS 1.625% 8/15/29 791,000.0000 102.277% $809,011.07 Fixed Income WELLS FARGO F/R 3.900%12/31/99 145,000.0000 103.530% $150,118.50 Fixed Income ZIONS BANCORPORATION 4.500% 6/13/23 95,000.0000 106.634% $101,302.30 $23,621,778.89 Cash&Cash Equivalents CASH (97,943.8100) $1.0000 ($97,943.81) Cash&Cash Equivalents FIRSTAMERN GOVTOBLIG FDCLZ#3676 FGZXX 941,864.4000 $1.0000 $941,864.40 SUBTOTALS Cash&Cash Equivalents $843,920.59 Equities $44,784,574.36 Fixed Income $38,848,049.99 TOTALS $84,476,544.94 JHIGHMARK@ CAPITAL MANAGEMENT Attachment 2 Investment Summary Since Inception CCC.7D — Pension Beginning Value 3,359,081.81 Asset Allocation Contributions 7,245,356.05 Withdrawals -12,944,299.47 Total Assets: $43,404 Gain (Loss) 1,455,124.08 Interest and Dividends 928,141.91 Period Ending: 6/30/2021 Net Accrued Income 3,675.12 2Q21 Return: 2.56% Ending Market Value $47,079.50* 1 Year Return: 11 .71% Inception-to-Date Return: 6.92% Equity Inception Date:9-1-2017 Cash $11,893 $5,584 27.400/, Plan target rate of return: 5.82% 12.870/, Fixed Income $25,928 59.740/, * 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® CAPITAL MANAGEMENT Attachment 2 Asset Allocation - Central Contra Costa Sanitary District Pension As of Second Quarter 2021 Current Asset Allocation Equity 27.40% Range: 20%-40% 11,893 Large Cap Core 10.90% IVV iShares Core S&P 500 ETF 4,729 Large Cap Value 2.04% IVE iShares S&P 500 Value ETF 886 Mid Cap Core 2.01% IWR iShares Russell Mid-Cap ETF 872 Small Cap Value 1.95% UBVFX Undiscovered Managers Behavioral Val R6 846 Small Cap Growth 1.94% RSEJX Victory RS Small Cap Growth R6 842 International Core 4.75% VEA Vanguard FTSE Developed Markets ETF 2,061 Emerging Markets 1.94% HHHFX Hartford Schroders Emerging Mkts Eq F 843 Real Estate 1.88% VNQ Vanguard Real Estate ETF 814 Fixed Income 59.74% Range: 50%-80% 25,928 Short-Term 3.91% VFSUX Vanguard Short-Term Investment-Grade Adm 1,695 12.75% AGG iShares Core US Aggregate Bond ETF 5,536 Intermediate-Term 20.54% PTTRX PIMCO Total Return Instl 8,914 21.67% PTRQX PGIM Total Return Bond R6 9,407 High Yield 0.86% PHIYX PIMCO High Yield Instl 375 Cash 12.87% Range: 0%-20% 5,584 12.87% FGZXX First American Government Oblig Z 5,584 TOTAL 100.00% $43,404 JHIGHMARKO CAPITAL MANAGEMENT Attachment 2 Selected Period Performance PARS/CCCSD 115P - PENSION Account 6746055901 Period Ending: 6/30/2021 Year Inception to Date to Date 3 Months (6 Months) 1 Year 3 Years 09/01/2017 Cash Equivalents .01 .01 .03 1.14 1.16 Lipper Money Market Funds Index .00 1.11 1.12 Fixed Income ex Funds 1.43 -1.80 .01 5.48 3.85 Total Fixed Income 1.72 -1.50 .73 5.58 3.93 BBG Barclays US Aggregate Bd Index 1.83 -1.60 -.33 5.34 Total Equities 4.06 10.94 40.57 14.93 14.07 Large Cap Funds 5.25 12.13 36.96 17.04 16.15 S&P 500 Composite Index 8.55 15.25 40.79 18.67 17.69 Mid Cap Funds 4.57 13.08 45.62 15.32 14.84 Russell Midcap Index 7.50 16.25 49.80 16.45 15.92 Small Cap Funds .12 10.34 54.30 12.98 14.88 Russell 2000 Index 4.29 17.54 62.03 13.52 15.36 International Equities 3.66 7.76 37.23 10.70 8.59 MSCI EAFE Index 5.17 8.83 32.35 8.27 7.48 MSCI EM Free Index 5.05 7.45 40.90 11.27 8.69 RR: RE ITS 11.74 21.55 34.29 11.36 9.04 Wilshire REIT Index 12.84 22.78 37.52 10.06 8.67 Total Managed Portfolio 2.56 2.44 11.71 8.45 6.92 CCCSD Pension 3.12 3.48 11.99 8.25 7.04 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 Attachment 2 Holdings-Reporting as of Trade Date Account:6746055901-PARS/CCCSD 115P-PENSION As of:30-Jun-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Cash&Cash Equivalents CASH (3,418.1100) $1.0000 ($3,418.11) Cash&Cash Equivalents FIRST AMERN GOVT OBLIG FID CIL Z#3676 FGZXX 9,002.0900 $1.0000 $9,002.09 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 38.9310 $21.6600 $843.25 Equities ISHARES RUSSELL MIDCAP ETF IWR 11.0000 $79.2400 $871.64 Equities ISHARES S&P 500 VALUE ETF IVE 6.0000 $147.6400 $885.84 Equities ISHARES TR CORE S&P500 ETF IVV 11.0000 $429.9200 $4,729.12 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 10.2850 $82.2700 $846.15 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 40.0000 $51.5200 $2,060.80 Equities VANGUARD REAL ESTATE ETF VNQ 8.0000 $101.7900 $814.32 Equities VICTORY RS SM CAP GROW#279 RSEJX 8.1010 $103.8800 $841.53 Fixed Income ISHARES CORE US AGGREGATE BD ETF AGG 48.0000 $115.3300 $5,535.84 Fixed Income PIMCO HIGH YIELD,INSTL #108 PHIYX 41.1990 $9.1100 $375.32 Fixed Income PI MCO TOTAL RETURN INSTL #35 PTTRX 858.8110 $10.3800 $8,914.46 Fixed Income PRUDENTIAL TOTAL RTRN BD CLQ PTRQX 640.3710 $14.6900 $9,407.05 Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 154.6610 $10.9600 $1,695.08 SUBTOTALS Cash&Cash Equivalents $5,583.98 Equities $11,892.65 Fixed Income $25,927.75 TOTALS $43,404.38 JHIGHMARK@ CAPITAL MANAGEMENT Attachment 2 CENTRAL CONTRA COSTA SANITARY DISTRICT For Period Ending June 30, 2021 EQUITYLARGE CAP 3-Month YTD 1-Year 3-Year 5-Year 10-Year Fund Name Inception Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank iShares Core S&P 500 ETF (4/17) 8.54 26 15.23 43 40.75 52 18.64 27 17.61 26 14.78 14 iShares S&P 500 Value ETF (4/17) 4.96 67 16.18 64 39.27 64 12.96 36 12.36 46 11.67 33 Vanguard Growth& Income Adm (12/16) 8.38 36 15.89 32 41.52 45 18.08 40 17.18 38 14.86 11 iShares S&P 500 Growth ETF (4/17) 11.87 25 14.20 27 41.11 48 22.87 45 21.61 51 17.08 31 S&P 500 TR USD 8.55 15.25 40.79 18.67 17.65 14.84 obb.- MID CAP EQUITY iShares Russell Mid-Cap ETF (3/16) 7.43 14 16.15 61 49.53 56 16.29 17 15.44 22 13.06 12 Russell Mid Cap TR USD 7.50 16.25 49.80 16.45 15.62 13.24 EQUITYSMALL CAP Undiscovered Managers Behavioral Val R6 (9/16) 4.18 49 27.85 34 84.83 16 10.16 36 12.80 37 12.70 Russell 2000 Value TR USD 4.56 -- 26.69 -- 73.28 10.27 -- 13.62 10.85 Victory RS Small Cap Growth R6 (2/19) 3.09 81 0.44 97 34.82 98 15.92 68 22.23 35 14.64 Russell 2000 Growth TR USD 3.92 -- 8.98 -- 51.36 -- 15.94 -- 18.76 -- 13.52 INTERNATIONAL -- • Dodge&Cox International Stock 4.66 33 12.15 42 40.39 27 7.48 16 10.22 10 5.52 19 Vanguard FTSE Developed Markets ETF (9/18) 5.69 27 9.93 32 35.84 31 9.17 37 10.91 34 6.39 23 MFS International Growth R6 7.01 43 7.77 40 31.10 70 12.74 55 14.08 42 8.16 42 MSCI EAFE NR USD 5.17 -- 8.83 -- 32.35 -- 8.27 -- 10.28 -- 5.89 -- Hartford Schroders Emerging Mkts Eq F 2.90 84 6.54 72 43.85 35 13.28 26 15.03 18 5.57 I MSCI EM NR USD 5.05 -- 7.45 -- 40.90 -- 11.27 -- 13.03 -- 4.28 EQUITY -- REIT Vanguard Real Estate ETF (4/17) 11.66 63 21.37 47 34.33 65 11.92 35 7.06 48 9.72 30 Wilshire REIT Index 12.84 -- 22.78 -- 37.52 -- 10.06 -- 6.36 -- 9.38 BOND FUNDS iShares Core US Aggregate Bond ETF (6/21) 1.82 55 -1.64 67 -0.37 77 5.29 49 2.97 55 3.33 50 PIMCO Total Return Instl 2.09 49 -1.06 68 1.47 78 5.77 51 3.84 44 3.77 55 PGIM Total Return Bond R6 (5/16) 3.14 3 -1.44 88 2.70 47 6.24 29 4.31 22 4.76 8 Vanguard Short-Term Investment-Grade Adm 0.68 26 0.21 51 2.13 45 4.18 13 2.80 20 2.61 16 BBgBarc US Agg Bond TR USD 1.83 -- -1.60 -0.33 -- 5.34 -- 3.03 -- 3.39 -- PIMCO High Yield Instl (12/20) 2.48 52 2.54 77 12.44 76 6.89 34 6.59 40 5.99 29 ICE BofA US High Yield Mstr II Index 2.77 -- 3.70 -- 15.62 -- 7.15 -- 7.30 -- 6.53 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. J HIGHIIIIARKO CAPITAL MANAGEMENT