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HomeMy WebLinkAbout06.a. Receive Highmark Other Post-Employment Benefits (OPEB) and pension prefunding sub-trust reports for the third quarter of calendar year 2021Page 1 of 24 Item 6.a. F__1_448�411C_S0 November 22, 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 PREFUNDI NG SUB -TRUST REPORTS FOR THE THIRD 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 September 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). In summary, this quarter's report reflects quarterly returns of -0.79% and 0.30% for Central San's OPEB and Pension Pre -funding sub - trusts, respectively. The long-term targeted returns are 5.75% for the OPEB trust and 5.14% for the Pension Pre -funding trust. In comparison, the inception -to -date returns have been 9.58% and 6.56% 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. (Attachment 2). While not a new issue, it is worth mentioning a system limitation present in the PARS systems such that that the "Contributions" and "Withdrawals" shown on page 2 of 17 for the OPEB Trust are significantly overstated. This is due reasons including a transfer in account number related to the set-up of the Pension Prefunding Trust in 2017, as well as several changes to mutual fund investment share classes where movements of funds were reflected as withdrawals and contributions. 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 $47,192 was reported in the trust on September 30, 2021. Strategic Plan Tie -In GOAL THREE: Fiscal Responsibility Strategy 1— Maintain financial stability and sustainability, , Strategy 2 — Ensure integrity and transparency in financial management November 22, 2021 Regular FINANCE Committee Meeting Agenda Packet - Page 139 of 167 Page 2 of 24 ATTACHMENTS: 1. Highmark Overview, Third Quarter 2021 2. PARS Investment Report, Third Quarter of 2021 November 22, 2021 Regular FINANCE Committee Meeting Agenda Packet - Page 140 of 167 Page 3 of 24 JHIGHMARK* CAPITAL MANAGEMENT October 19, 2021 Phil Leiber Director of Finance and Administration Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553-4392 RE: 3Q Quarter 2021 OPEB/Pension Report Dear Mr. Leiber, Market Commentary Attachment 1 The biggest "Grand Reopening" ever was put on hold this past summer thanks to an unexpected resurgence of COVID cases despite the broad deployment of vaccines. Beginning last November, when the first successful vaccine trials were announced, it appeared a return to normalcy was right around the bend, and banners could be hung on every street corner letting consumers know the economy would soon be fully open for business once again. With vaccine distribution in full swing by spring, this summer was shaping up to feel a lot like the famous summer of 1969. While not exactly on the same scale, the prospect of resuming normal activities that we all once took for granted, like taking vacations and hugging loved ones, after a long hiatus felt like a moon landing event. Unfortunately, expectations that vaccines would offer fortress -like immunity and receive ubiquitous uptake among the eligible quickly gave way to a reality that both assumptions would prove overly optimistic and the pandemic would remain a dark cloud hanging over the economy for longer than most anticipated. As case counts and hospitalizations grew over the summer, so did restrictions to slow the spread. In turn, the momentum of global economic growth naturally slowed. High frequency data that tracks mobility in places like airports, hotels and restaurants quickly reflected the pivot in pandemic -related concern. Perhaps most importantly, snarled supply chains, already putting heavy upward pressure on inflation, intensified over the quarter. The bottleneck has become so pronounced that the ever-growing count of container ships waiting to be off-loaded at U.S. ports has become a regular news story. Disappointing economic data as the second quarter progressed led to significant declines in estimates of third quarter U.S. real Gross Domestic Product (GDP). After initially estimating a 6 percent annualized growth rate for most of August, the Atlanta Federal Reserve's (Fed) measure of GDP steadily plummeted to just 1.3 percent in early October. Equity markets initially took the economic setback in stride, instead focusing on third- quarter corporate profits reports that continued to inspire confidence. Nowhere was this more apparent than domestic large cap stocks. Entering second quarter earnings season, consensus analyst estimates for the S&P 500 Index were expecting an already November 22, 2021 Regular FINANCE Committee Meeting Agenda Packet - Page 141 of 167 Page 4 of 24 Attachment 1 stellar year -over -year profit increase of 64 percent' according to FactSet. By the end of the reporting season, FactSet noted, the index would see actual earnings increase by over 90 percent -- the largest year -over -year increase since the fourth quarter of 2009. In September, as the earnings season wound down, investors began to refocus on deteriorating economic data and negative headlines. The tape of bad news flowed freely with increasing attention being paid to the regulatory crackdown in China and gridlock in Washington. By the end of the month, the S&P 500 Index would register its worst monthly return since March of 2020, falling 4.7 percent.2 Change in China Heading into next year's National Party Congress, where he will be looking to secure a third term, Chinese President Xi Jinping has sought to address a number of structural issues that are seen as obstacles to growing a robust middle-class population and continued economic development. Under the banner of a "common prosperity" campaign and other initiatives, China's government has taken aggressive regulatory action to reign in what it views as an unacceptable wealth gap. Targets of these restrictive measures have ranged broadly across the economy from China's tech giants to private tutoring firms to insurance companies. As Brookings Institute Senior Fellow Ryan Hass explains, "In launching a recent wave of actions to redress social inequality and economic disparity, China's leaders may view themselves as correcting some of the excesses of Deng's [Xiaoping] decision to "let some people get rich first". Such efforts align with Xi's efforts to recast himself from a princeling to a populist leader.113 China's multi -pronged policy shifts have stirred uncertainty in the world's second largest economy and sent domestic stocks well into bear market territory from February highs. Given the significance of China's role in the broader economy, investors are naturally concerned about ripple effects across the global economy. Compounding the market's jitters over China, financially distressed property developer Evergrande has emerged as one of the larger casualties of a regulatory crackdown focusing on curbing speculation and leverage in China's property market. With a reported $300 billion in liabilities, some have speculated that Evergrande could become China's equivalent of Lehman Brothers. Facing a massive restructuring, Chinese authorities have aimed to limit Evergrande's impact on the broader economy by signaling it intends to support the real estate market. D.C. Drama Washington's penchant for political brinksmanship has once again found its way into the narrative of financial markets. Lawmakers have set themselves up for a down -to -the -wire 1https://www.factset.com/hubfs/Website/Resources%20Section/Research%20Desk/Earnings%201nsight/ Earningslnsight 070221.pdf z Source: Morningstar Direct 3 https://www.brookings.edu/blog/order-from-chaos/2021/09/09/assessing-chinas-common-prosperity- campaign/ November 22, 2021 Regular FINANCE Committee Meeting Agenda Packet - Page 142 of 167 Page 5 of 24 Attachment 1 stalemate over how to raise the debt ceiling in a standoff reminiscent of the same scenario that played out in 2011. According to U.S. Treasury Secretary Janet Yellen, the U.S. government can only afford to pay its bills until October 18 without additional borrowing. The devastating fallout of a default on U.S. government debt could not be understated. Secretary Yellen underscored this point in a recent television interview saying, "I think it would be catastrophic for the economy and for individual families".' Aside from addressing the debt ceiling, Congress will have a packed agenda in October as it seeks to move the bipartisan infrastructure bill and President Biden's Build Back Better budget plan across the finish line. Both pieces of legislation have important implications for fiscal policy over the long term and will also be closely followed by investors. As expected, the Build Back Better plan will increase taxes to pay for spending on social and climate programs and is likely to be significantly scaled back from the original $3.5 trillion price tag to meet the demands of moderate Democrats. Looking Ahead Since March of 2020, highly accommodative and globally coordinated fiscal and monetary policies have supported a "glass half full" investor mindset towards a majority of risk assets whenever sources of uncertainty emerged. However, as accommodative policy is weaned over time, we expect that maintaining this sanguine disposition will become more challenging. Global equity markets, led by domestic stocks, have enjoyed an unusually smooth and rapid ascent over the past eighteen months — a pattern we do not expect to continue going forward. Rather, we expect further price appreciation but at a more modest pace, accompanied by a normalization in volatility reflecting a growing number of risks as the recovery cycle matures. For now, we expect the current headwinds to economic momentum as delaying, but not derailing, the recovery. Therefore, we remain constructive on the more economically sensitive areas of the equity market that have been out of favor relative to more defensive sectors. Fixed Income Review The third quarter was characterized by increased COVID concerns, a strong but decelerating U.S. economic recovery, persistent inflation, Congress's inability to pass an infrastructure bill and a move toward less accommodative global central bank policy. Given these drawbacks, volatility significantly increased, interest rates fell substantially, and credit spreads widened. By the end of the quarter, however, the impact of these moves in fixed income markets reversed. Long maturity U.S. government bond rates ended the quarter marginally lower while intermediate rates and credit spreads in general ended the quarter slightly higher. This basketful of risks worrying markets has weighed on forecasts for economic growth. In fact, the Federal Reserve Open Market Committee's (FOMC) median 2021 economic 4 https://www.cnbc.com/2021/09/30/yelien-lends-support-for-effort-to-remove-the-debt-ceiling- altogether.html. November 22, 2021 Regular FINANCE Committee Meeting Agenda Packet - Page 143 of 167 Page 6 of 24 Attachment 1 growth forecast fell from 7% in June to 5.9% in September. Downward revisions to growth forecasts, along with concerns over a potential Evergrande default, contributed to a short-lived decline in U.S. Treasury interest rates and a widening in credit spreads during the quarter. Is Inflation Transitory? — The Market Says Yes Inflation readings remained stubbornly high due to global supply chain disruptions, rising oil and natural gas prices, increasing shelter costs, wage pressures within some industries, and low -base price comparisons versus prior periods. There are, however, some early signs of easing price pressures, including recent declines in the Manheim Used Vehicle Value Index as well as prices for airfare and lodging away from home. These data points, however, have not sufficed to resolve the debate among market participants and central bankers over questions such as whether current inflationary pressures are transitory, how long "transitory" might last or the prospect that we could be entering a new inflation paradigm. For the time being though, the markets cautiously agree with Federal Reserve (Fed) Chairman Powell's transitory inflation stance. From the Gas Pedal to the Brakes On the monetary policy front, the Fed began preparing markets for a potential tapering of its quantitative easing (QE) asset purchase program. If the recovery remains on track, QE tapering is expected to begin at the end of the year and conclude by mid-2022. The tapering timeline was telegraphed by the Fed during its September policy meeting and the tapering pace was faster than markets originally anticipated, contributing to the increase in interest rates near the end of the quarter. QE asset purchases are synonymous with a monetary policy that pushes the gas pedal on economic growth, while changes to the Fed Funds rate are synonymous with pushing the brakes on economic growth. The Fed has been clear that there is no predetermined timeline between tapering QE and increasing the Fed Funds rate, but has noted that the latter will require much more progress toward meeting their policy goalposts. These goalposts were changed in August 2020 under the Fed's new policymaking framework which seeks to achieve strong and broad -based employment outcomes, while also allowing average inflation to exceed its long-term inflation target over an unspecified period of time prior to triggering rate hikes. Looking Ahead Heading into the final quarter of 2021 and beyond into 2022, we expect a near -term resolution to the Federal budget and debt ceiling impasse, the passage of a slimmed down infrastructure stimulus package, decelerating yet reasonable U.S. economic growth, the beginning of QE tapering, modestly easing core inflation pressures, and continued improvement in corporate credit fundamentals within select industries. We expect intermediate to longer maturity interest rates to resume their trend higher across developed market economies as the global glut of liquidity slowly declines. Further, we believe short- maturity interest rates in the U.S. will remain relatively stable given our expectation that the Fed will be slower to increase short-term rates than what is currently priced into the market. November 22, 2021 Regular FINANCE Committee Meeting Agenda Packet - Page 144 of 167 Page 7 of 24 Attachment 1 Despite continued improvement in corporate credit fundamentals, select industries and issuers may face declining margins and increased pressure to partake in mergers and acquisitions or to prioritize equity holders at the expense of debt holders. With corporate credit -spread risk premiums near their lowest level since the financial crisis, we see limited opportunity for additional spread compression. However, opportunities exist within select industries and issuers. Further, higher U.S. Treasury interest rates should keep credit -spread premiums contained within a low range as yield -sensitive buyers increase purchase activity. As such, we advocate fixed -income strategies that focus on security selection, yield carry, and minimizing interest rate risk. Plan Performance The Central Contra Costa Sanitary District OPEB Plan declined -0.79% gross of investment fees for the third quarter, which trailed the Plan's benchmark target of -0.41 %. The fixed income segment gained 0.19%, which outperformed the Bloomberg US Aggregate Bond Index return of .05%. Performance was supported by both high yield (Pimco High Yield +0.78%) and three of the four other fixed income managers who outperformed the Bloomberg Aggregate Index in the quarter. Credit spreads widened in the first weeks of the quarter, as fears over another wave of the spread of COVID-19 emerged. There was an encouraging wave of new issuance in the latter part of the quarter, however much of the issuance was related to the high -yield market. Inflationary pressures also provided some pressure on yields in the quarter. Fears of tapering with respect to quantitative easing have not led to a sell-off in fixed income, yet. The equity segment was less rewarding for the OPEB Plan returns, as stocks declined -1.76%. With the exception of real estate (+0.6%), and large cap equity (+0.36%) the majority of our equity categories posted negative returns in the quarter. Higher volatility equity markets such as emerging markets (MSCI Emerging Market Index-8.09%) and small cap equities (Russell 2000 Index-4.36%) declined the most in the quarter. Emerging market equities were once again primarily driven by events in China, whether it was restrictive policies from governmental regulators, or concerns over the over - indebted property development sector. While we reduced our emerging market equity allocation by -1 % in the quarter, it only mitigated slightly the downside to returns. Large cap growth stocks outperformed large cap value stocks in the quarter by roughly 2%, however that trend showed some signs of reversing in September as large cap value outperformed growth in the month by almost 2%. However, as the Plan maintained a small tilt to an overweight to large cap value throughout 2Q, this negatively impacted the Plan in the quarter. Overall the leading detractor to Plan returns in the quarter came from the Victory Small Cap Growth Fund, which declined-10.65%. We ended the quarter with a target asset allocation of 52% stocks, 47% 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 0.30% in the quarter, gross of investment fees, which exceeded the District's Plan benchmark target of -0.22%. Andrew Brown November 22, 2021 Regular FINANCE Committee Meeting Agenda Packet - Page 145 of 167 PARS: Central Contra Costa Sanitary District OPEB and Pension Plan Third Quarter 2021 Presented by Andrew Brown, CFA HIGHMARK° CAPITAL MANAGEMENT CCCSD — OPEB Asset Allocation Total Assets: $83,759,046 Period Ending: 9-30-2021 3Q21 Return: -0.79% 1 Year Return: 15.56% Inception -to -Date Return: 9.58% Inception Date: 4-1-2009 Plan target rate of return: 5.75% Fixed Income $39,205,683 45 810jo Cash V AF �7F) Beginning Value 566,683.26 Contributions 106,870,307.56 Withdrawals -65,059,697.51 Gain (Loss) 23,673,753.58 Interest and Dividends 17,707,999.45 Net Accrued Income 120,546.97 Ending Market Value $83,879,593.31* Equity $43,496,989 51.930jo * 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 0 PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT 2 Asset Allocation - Central Contra Costa Sanitary District OPEB As of Third Quarter 2021 Equity 51.93% Range: 40%-60% 43, 496, 989 Large Cap Core 9.85% IVV iShares Core S&P 500 ETF 8,247,187 6.89% VGIAX Vanguard Growth & Income Adm 5,767,704 Large Cap Value 5.49% IVE iShares S&P 500 Value ETF 4,598,035 Large Cap Growth 4.91% IVW iShares S&P 500 Growth ETF 4,114,200 Mid Cap Core 4.92% IWR iShares Russell Mid -Cap ETF 4,119,065 Small Cap Value 4.08% UBVFX Undiscovered Managers Behavioral Val R6 3,416,320 Small Cap Growth 3.89% RSEJX Victory RS Small Cap Growth R6 3,255,582 International Core 3.69% VEA Vanguard FTSE Developed Markets ETF 3,088,776 International Value 1.51% DODFX Dodge & Cox International Stock 1,265,331 International Growth 1.52% MGRDX MFS International Growth R6 1,273,979 Emerging Markets 3.24% HHHFX Hartford Schroders Emerging Mkts Eq F 2,712,761 Real Estate 1.96% VNQ Vanguard Real Estate ETF 1,638,047 Fixed Income 46.81% Range: 40%-60% 39,205,683 28.07% Core Fixed Income Portfolio 23,511,508 Short -Term 1.78% VFSUX Vanguard Short -Term Investment -Grade Adm 1,493,749 Intermediate -Term 7.88% PTTRX PIMCO Total Return Instl 6,599,181 7.85% PTRQX PGIM Total Return Bond R6 6,576,972 High Yield 1.22% PHIYX PIMCO High Yield Instl 1,024,271 Cash 1.26% Range: 0%-20% 1,056,375 1.26% FGZXX First American Government Oblig Z 1,056,375 TOTAL 100.00% $83,759,046 HIGHMARK° PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT Me 7 3 Cash Equivalents Lipper Money Market Funds Index Fixed Income ex Funds Total Fixed Income Bloomberg US Aggregate Bd Index Total Equities Large Cap Funds S&P 500 Composite Index Mid Cap Funds Russell Midcap Index Small Cap Funds Russell 2000 Index International Equities MSCI EAFE Index MSCI EM Free Index RR: RE ITS Wilshire REIT Index Total Managed Portfolio CCCSD OPEB Benchmark Selected Period Performance CCCSD -OPEB Period Ending: 9/30/2021 Year Inception to Date to Date 3 Months (9 Months) 1 Year 3 Years 5 Years 10 Years 04/01/2009 .01 .02 .03 .99 .99 .52 .46 .00 .00 .00 .96 .94 .48 .39 .19 -.99 .15 5.71 .19 -.86 .48 5.71 3.45 3.56 4.54 .05 -1.55 -.90 5.36 2.94 3.01 3 -1.76 11.94 31.33 13.34 14.42 14.11 14.57 .36 15.82 30.22 15.45 16.47 16.14 15.80 .58 15.92 30.00 15.99 16.90 16.63 16.79 -.95 14.99 37.87 14.08 14.08 13.80 -.93 15.17 38.11 14.22 14.39 15.52 17.09 -6.34 7.43 42.99 10.53 14.10 15.92 17.24 -4.36 12.41 47.68 10.54 13.45 14.63 15.67 -4.59 3.59 23.14 9.20 9.47 7.65 9.36 -.45 8.35 25.73 7.62 8.81 8.10 9.35 -8.09 -1.25 18.20 8.58 9.23 6.09 9.08 .60 22.03 33.42 11.28 1.64 24.79 38.04 10.39 6.97 11.30 16.73 -.79 5.88 15.56 9.78 9.03 8.87 9.58 -.41 6.22 15.31 9.40 8.74 8.63 9.52 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. J HIGHMARK° PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT 4 Fixed Income Portfolio: Statistics As of Third Quarter 2021 CCCSD BC Aggregate Bond OPEB Index Weighted Average Maturity j 7.44 years 8.56 years Effective Duration 5.89 years 2.61 % 1.70% Aa3 6.43 years 2.50% 1.51 % Aa2 Average Coupon Yield to Maturity Average Quality HIGHMARK° PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT Me 7 Source: BondEdge R Fixed Income Portfolio: Sectors As of Third Quarter 2021 40.0% 35.0% 1 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% ■ CCCS❑ OPEB ■ Barclays U.S. Aggregate Bond Index JHIGHMARKO CAPITAL MANAGEMENT e ,engbeF 22, 2921 Cash Treasury Agency Corp Non -Corp MBS CM❑ ABS CMBS 0.0% 29.6% 0.0% 33.5% 0.7% 21.4% 0.0% 14.1 % 0.7% 0.0% 38.0% 1.3% 25.8% 4.2% 28.4% 0.0% 0.2% 2.1 % PARS: Central Contra Costa Sanitary District Source: BondEdge Fixed Income Portfolio: Effective Duration and Effective Maturity As of Third Quarter 2021 Effective Duration 35% 30% 25% 20% 15% 10% 5% n01- 0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 10+ Yrs. Yrs. ■CCCSD DPEB 9.65% 18.79% 29.28% 9.59% 20.74% 11.95% BC Aggregate Bond Index 0.36% 31.85% 25.32% 16.44% 7.74% 18.30% JHIGHMARKO CAPITAL MANAGEMENT e ,engbeF 22, 2921 Effective Maturity 30% 25% 20% 15% 10% 5% no/- 0-1 Yr. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 Yrs. 10+ Yrs. ■ CCCSD OPEB 9.65% 13.77% 19.98% 22.75% 18.46% 15.39% BC Aggregate Bond Index 0.29% 19.19% 26.87% 14.62% 19.90% 19.12% PARS: Central Contra Costa Sanitary District Source: BondEdge rN Holdings - Reporting as of Trade Date Account: 6746055900 - PARS/CCCSD 115P - OPEB As of: 30-Sep-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Equities DODGE & COX INTLSTOCK FD(CLSD)#1048 DODFX 26,706.0250 $47.3800 $1,265,331.46 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 136,251.1910 $19.9100 $2,712,761.21 Equities ISHARES RUSSELL MIDCAP ETF IWR 52,660.0000 $78.2200 $4,119,065.20 Equities ISHARES S&P 500 GROWTH ETF IVW 55,665.0000 $73.9100 $4,114,200.15 Equities ISHARES S&P 500 VALUE ETF IVE 31,619.0000 $145.4200 $4,598,034.98 Equities ISHARES TR CORE S&P500 ETF IVV 19,143.0000 $430.8200 $8,247,187.26 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 28,609.4620 $44.5300 $1,273,979.34 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 42,354.5690 $80.6600 $3,416,319.54 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 61,176.0000 $50.4900 $3,088,776.24 Equities VANGUARD GRO & INC ADMIRALSHRS #593 VGIAX 53,399.7240 $108.0100 $5,767,704.19 Equities VANGUARD REAL ESTATE ETF VNQ 16,094.0000 $101.7800 $1,638,047.32 Equities VICTORY RS SM CAP GROW #279 RSEJX 35074.1420 $92.8200 $3,255,581.86 Fixed Income PIMCO HIGH YIELD,INSTL #108 PHIYX 112:805.2140 $9.0800 $1,024,271.34 Fixed Income PIMCO TOTAL RETURN INSTIL #35 PTTRX 636986.6260 $10.3600 $6,599,181.45 Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 450:786.3120 $14.5900 $6,576,972.29 Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 136,665.0740 $10.9300 $1,493,749.26 Fixed Income AMERICREDIT AUTO REC 3.580% 10/18/24 AAR3524A 140,000.0000 100.922% $141,290.80 Fixed Income CITIGROUP INC SR NT 6/09/27 CIS0027A 160,000.0000 99.411% $159,057.60 Fixed Income UNITED STATES TREA 0.00001% 10/31/25 UST0025C 215,000.0000 97.707% $210,070.05 Fixed Income UNITED STATES TREAS 0.000% 3/31/26 UST0026B 498,000.0000 99.293% $494,479.14 Fixed Income UNITED STATES TREAS 0.250% 6/15/24 UST0224B 228,000.0000 99.445% $226,734.60 Fixed Income UNITED STATES TREAS 0.375% 11/30/25 UST0025D 275,000.0000 98.090% $269,747.50 Fixed Income UNITED STATES TREAS 0.500% 2/28/26 UST0026A 129,000.0000 98.313% $126,823.77 Fixed Income UNITED STATES TREAS 1.250% 6/30/28 UST1228B 300,000.0000 99.789% $299,367.00 Fixed Income UNITED STATES TREAS 0.0001% 5/31/26 UST0026D 110,000.0000 99.160% $109,076.00 Fixed Income VERIZON COMMUNICATI0 2.987% 10/30/56 VC22956A 118,000.0000 92.337% $108,957.66 Fixed Income ACACN 2015-1A NTS 3.600% 9/15/28 A21\13627 140,204.6800 101.718% $142,613.40 Fixed Income ALASKA AIRLINES EQ 4.800% 2/15/29 AAE4829 119,809.5200 111.353% $133,411.49 Fixed Income ANDEAVOR SR GLBL 4.750% 12/15/23 TC44723 185,000.0000 106.218% $196,503.30 Fixed Income AT&T INC GLBL NT 3.500% 6/01/41 AIG3541 260,000.0000 102.673% $266,949.80 Fixed Income ATT 2013-1-2 2A 3.070% 3/15/48 A233048 155,000.0000 100.100% $155,155.00 JHIGHMARK@ CAPITAL MANAGEMENT PARS: Central Contra Costa Sanitary District Holdings - Reporting as of Trade Date Account: 6746055900 - PARS/CCCSD 115P - OPEB As of: 30-Sep-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income AVIATION CAP GROUP 1.950% 1/30/26 ACG1926 95,000.0000 99.639% $94,657.05 Fixed Income BANK OF AMERICA CORP 3.194% 7/23/30 BOA3130 106,000.0000 106.405% $112,789.30 Fixed Income BOEING CO CR SEN SR 2.196% 2/04/26 BCC2126 175,000.0000 100.737% $176,289.75 Fixed Income BRITISH AIRWAYS 20134.625% 12/20/25 BA24625 103844.7100 105.524% $109,581.09 Fixed Income BROADSTONE NET LEASE 2.600% 9/15/31 BNL2631 250:000.0000 98.787% $246,967.50 Fixed Income BRUNSWICK CORP 2.400% 8/18/31 BC22431 130,000.0000 96.688% $125,694.40 Fixed Income CAPITAL ONE CC TR 1.720% 8/15/24 C000024 250000.0000 101.325% $253,312.50 Fixed Income CARVANA AUTO RECS TR 0.660% 6/12/28 CAR0628 260:000.0000 99.983% $259,955.80 Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 77,000.0000 128.720% $99,114.40 Fixed Income CYRUSONE LP/CYRUSONE 2.150% 11/01/30 CL22130 130,000.0000 93.968% $122,158.40 Fixed Income DARDEN RESTAURANTS 4.550% 2/15/48 DR44548 175,000.0000 115.454% $202,044.50 Fixed Income DEVON ENERGY CORP NE4.500% 1/15/30 DEC4530 52,000.0000 108.989% $56,674.28 Fixed Income DNKN 2017-1AA211 4.030%11/20/47 D2A4047 178,525.0000 105.444% $188,243.90 Fixed Income DRIVE AUTO REC TR 200.001% 12/15/25 DAR0025 195,000.0000 100.022% $195,042.90 Fixed Income ENERGY TRANSFER OPER 5.800% 6/15/38 ETO5838 125,000.0000 122.325% $152,906.25 Fixed Income EXETER AUTO RECV TR 0.850% 1/15/26 EAR0826 175,000.0000 100.182% $175,318.50 Fixed Income F&G GLOBAL FUNDING 2.000% 9/20/28 FGF2028 130,000.0000 98.457% $127,994.10 Fixed Income FAIRFAX US INC 4.875% 8/13/24 FUI4824 115,000.0000 109.020% $125,373.00 Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 84,703.5600 104.914% $88,865.89 Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 122,091.8000 107.915% $131,755.37 Fixed Income FGLMC#J30401 3.000% 1/01/30 J30401F 94,006.5100 106.453% $100,072.75 Fixed Income FGLMC #Q13204 3.000% 11/01/42 Q13204F 92,025.6000 108.126% $99,503.60 Fixed Income FHLMC G08823 3.500% 7/01/48 G08823F 85,655.4800 106.067% $90,852.20 Fixed Income FHLMC G14702 2.5000% 3/1/2023 G14702F 27,413.6300 104.146% $28,550.20 Fixed Income FHLMC G15252 3.000% 12/01/29 G15252F 79,697.2000 106.459% $84,844.84 Fixed Income FHLMC Q38373 3.500% 1/01/46 Q38373F 69,670.5600 108.070% $75,292.97 Fixed Income FHLMC RB5091 2.500% 11/01/40 RB5091A 354,927.4000 103.392% $366,966.54 Fixed Income FHLMC SB0380 3.500% 2/01/34 SB0380A 103,533.4100 108.140% $111,961.03 Fixed Income FHLMC SB8006 3.000% 9/01/34 SB8006A 96,915.5100 105.524% $102,269.12 Fixed Income FHLMC V60586 3.0000% 8/1/2029 V60586F 84,232.6200 106.296% $89,535.91 Fixed Income FIRST HORIZON CORPOR4.000% 5/26/25 FHC4025 145,000.0000 109.112% $158,212.40 JHIGHMARK@ PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT 9 Holdings - Reporting as of Trade Date Account: 6746055900 - PARS/CCCSD 115P - OPEB As of: 30-Sep-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FNMA #MA3238 3.500% 11/01/47 MA3238A 54,805.1000 106.119% $58,158.62 Fixed Income F N MA A L8174 3.5000% 2/1/2046 AL8174A 166,512.1200 108.434% $180,555.75 Fixed Income FN MA AL8924 3.0000% 12/1/2030 AL8924A 135,325.6500 105.518% $142,792.92 Fixed Income F N MA A L9376 3.0000% 8/1/2031 AL9376A 77,255.3300 105.710% $81,666.61 Fixed Income FNMAAL9861 3.000% 8/01/30 AL9861A 192,211.4700 105.624% $203,021.44 Fixed Income FNMAAS4916 3.000% 5/01/30 AS4916A 131,769.9700 105.760% $139,359.92 Fixed Income FNMA AS7729 3.0000% 8/1/2046 AS7729A 127,730.1100 107.137% $136,846.21 Fixed Income FNMA AT0293 3.0000% 3/1/2043 AT0293A 89,450.7600 108.086% $96,683.75 Fixed Income FNMA BC 1486 3.0000% 8/1/2046 BC1486A 118433.6400 107.135% $126,883.88 Fixed Income FNMA BM4913 3.000% 5/01/46 BM4913A 68:491.8900 106.627% $73,030.85 Fixed Income FNMA CA6348 2.500% 7/01/50 CA6348A 232140.1600 103.430% $240,102.57 Fixed Income FNMA CA6638 2.500% 8/01/50 CA6638A 301:837.0300 103.196% $311,483.74 Fixed Income FNMA CA6801 2.500% 8/01/50 CA6801A 328319.7900 103.368% $339,377.60 Fixed Income FNMA CA7231 2.500% 10/01/50 CA7231A 272:233.5100 103.445% $281,611.95 Fixed Income FNMA FM3494 2.500% 4/01/48 FM3494A 130783.2500 103.704% $135,627.46 Fixed Income FNMA MA2730 2.500% 8/01/46 MA2730A 302:024.9600 103.305% $312,006.88 Fixed Income FNMA MA27792.0000% 10/1/2026 MA2779A 56,115.5800 103.072% $57,839.45 Fixed Income FNMA MA2895 3.000% 2/01/47 MA2895A 76,784.7200 105.944% $81,348.80 Fixed Income FNMA MA3210 3.500% 11/01/47 MA3210A 51,666.9900 106.490% $55,020.18 Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 42,119.2000 107.087% $45,104.19 Fixed Income FNMA MA3332 3.500% 3/01/48 MA3332A 70,184.5800 106.296% $74,603.40 Fixed Income FNMA MA3489 3.500% 10/01/33 MA3489A 39,670.0800 106.938% $42,422.39 Fixed Income FNMA MA3536 4.000% 12/01/48 MA3536A 19,651.5600 107.191% $21,064.70 Fixed Income FNMA MA4123 2.000% 9/01/35 MA4123A 219,099.5800 103.072% $225,830.32 Fixed Income FNMA UMBS INT 2.000% 8/01/36 CB1446A 208,670.5100 103.818% $216,637.55 Fixed Income FORD CR AUTO OWN TR 1.870% 3/15/24 FCA0024 113,237.5100 100.862% $114,213.62 Fixed Income FORD CREDIT FLRPLN 3.040% 3/15/24 FCF3024 145,000.0000 101.228% $146,780.60 Fixed Income GM ANLAUTO LEASE 2.040% 12/20/23 GFA2023 235,000.0000 101.337% $238,141.95 Fixed Income GOLDMAN SACHS BDS 3.691% 6/05/28 GSB3628 110,000.0000 110.073% $121,080.30 Fixed Income HASBRO INC 3.550% 11/19/26 H133526 100,000.0000 108.859% $108,859.00 Fixed Income HCA INC NTS 5.375% 2/01/25 HIN5325 105,000.0000 111.750% $117,337.50 JHIGHMARK@ PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT 10 Holdings - Reporting as of Trade Date Account: 6746055900 - PARS/CCCSD 115P - OPEB As of: 30-Sep-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income HELMERICH & PAYNE IN 2.900% 9/29/31 HP12931 95,000.0000 100.231% $95,219.45 Fixed Income HONDA AUTO RECV 20183.160% 8/19/24 HAR3124 118,516.7200 100.120% $118,658.94 Fixed Income LOS ANGELES REV BDS 6.574% 7/01/45 LAR6545 100,000.0000 161.569% $161,569.00 Fixed Income MOTOROLA SOLUTIONS 5.500% 9/01/44 MS55544 95,000.0000 130.295% $123,780.25 Fixed Income MVW 2020-1 1.740% 10/20/37 M211737 189,265.1400 101.115% $191,375.45 Fixed Income NATIONAL FUEL GAS CO 2.950% 3/01/31 NFG0031 145,000.0000 101.256% $146,821.20 Fixed Income NGPL PIPECO LLC SR 3.250% 7/15/31 NPL3231 135,000.0000 102.460% $138,321.00 Fixed Income ONE GAS INC SR NT 1.100% 3/11/24 OG11124 175,000.0000 100.005% $175,008.75 Fixed Income PACIFIC GAS & ELEC 3.150% 1/01/26 PGE3126 125,000.0000 103.331% $129,163.75 Fixed Income PENN MUTUAL LIFE INS 3.800% 4/29/61 PML3861 175,000.0000 104.026% $182,045.50 Fixed Income PHYSICIANS RLTY LP 3.950% 1/15/28 PRL3928 170,000.0000 109.809% $186,675.30 Fixed Income SANTANDER RENGATLN 2.800% 1/26/32 SRA2832 230,000.0000 104.628% $240,644.40 Fixed Income SANTANDER RETAILAUT3.660% 5/20/24 SRA3624 270000.0000 101.313% $273,545.10 Fixed Income SBA TOWER TRUST 1.631% 5/15/51 STT1651 140:000.0000 99.749% $139,648.60 Fixed Income SCHWAB CHARLES F/R 4.000% SCC0049 145,000.0000 104.250% $151,162.50 Fixed Income SPRINT SPECTRUM CO 4.738% 9/20/29 SSC4729 175,000.0000 106.800% $186,900.00 Fixed Income TAOT2019-CA3 MTGE 1.910% 9/15/23 T2A1923 133,160.9400 100.738% $134,143.67 Fixed Income TIME WARNER CABLE NT 7.300% 7/01/38 TWC7338 125,000.0000 143.452% $179,315.00 Fixed Income TOYOTA AUTO RECV OWN 2.520% 5/15/23 TAR2523 58,829.8300 100.535% $59,144.57 Fixed Income TRI-STATE GENERATION 6.000% 6/15/40 TG66040 115,000.0000 137.100% $157,665.00 Fixed Income UNITEDAIRI4-2A 3.750%9/03/26 UA13726 99,430.3000 105.164% $104,564.88 Fixed Income UNITED STATES TREAS 0.750% 1/31/28 UST0728 900,000.0000 97.106% $873,954.00 Fixed Income UNITED STATES TREAS 0.875% 9/30/26 UST0826 400,000.0000 99.461% $397,844.00 Fixed Income UNITED STATES TREAS 1.625% 5/15/31 UST1631 2,244,000.0000 101.172% $2,270,299.68 Fixed Income UNITED STATES TREAS 1.625% 10/31/26 UST1626 150,000.0000 103.070% $154,605.00 Fixed Income UNITED STATES TREAS 2.250% 5/15/41 UST2241 280,000.0000 103.984% $291,155.20 Fixed Income UNTD AIR 2013-1 4.300% 8/15/25 UA24325 163,239.6400 107.345% $175,229.59 Fixed Income VERIZON OWNERTR 1.940% 4/20/24 VOT0024 400,000.0000 100.985% $403,940.00 Fixed Income WESTLAKE AUTO RECV 4.000% 10/16/23 WAR4023 139,181.3700 101.020% $140,601.02 Fixed Income WESTLAKE CHEM CORP 0.001% 8/15/51 WCC0051 105,000.0000 94.337% $99,053.85 Fixed Income WORLD OMNI AUTO 2.500% 4/17/23 WOA2523 48,967.7700 100.290% $49,109.78 JHIGHMARK@ PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT 11 Holdings - Reporting as of Trade Date Account: 6746055900 - PARS/CCCSD 115P - OPEB As of: 30-Sep-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income ANHEUSER-BUSCH INBEV WLDW IN BUD/42 125,000.0000 123.539% $154,423.75 Fixed Income BLOCK FIN LCORP BDS 5.250% 10/01/25 HRB/25 80,000.0000 112.725% $90,180.00 Fixed Income COMMONWEALTH EDISON 5.875% 2/01/33 EXC/33 115,000.0000 130.583% $150,170.45 Fixed Income HESS CORP HES/33 175,000.0000 135.232% $236,656.00 Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 120000.0000 141.432% $169,718.40 Fixed Income PLAINS ALL AMERN PIP 6.700% 5/15/36 PAA36 140:000.0000 124.783% $174,696.20 Fixed Income BANK OF NOVA SCOTIA 90,000.0000 107.500% $96,750.00 Fixed Income BOARDWALK PIPELINES 4.800% 5/03/29 125,000.0000 114.491% $143,113.75 Fixed Income BRITISH AIRWAYS PLC 3.300% 6/15/34 104836.4500 101.351% $106,252.79 Fixed Income DELTA AIR LINES 2.500% 12/10/29 109:156.9400 100.466% $109,665.39 Fixed Income FEDERAL EX CORP 1.875% 8/20/35 137,246.4800 98.808% $135,610.50 Fixed Income JPMORGAN CHASE & CO 3.650% 155,000.0000 100.500% $155,775.00 Fixed Income PNC FINLSVCS GROUP 3.400% 135,000.0000 99.750% $134,662.50 Fixed Income QORVO INC 4.375% 10/15/29 30,000.0000 109.000% $32,700.00 Fixed Income SPIRITAIRLINES 2017-1 89,172.6400 98.226% $87,590.72 Fixed Income TRUIST FINLCORP F/R 5.125% 115,000.0000 107.750% $123,912.50 Fixed Income UNITED STATES TREAS 1.875% 2/15/51 476,000.0000 95.359% $453,908.84 Fixed Income US TREAS NTS 1.625% 8/15/29 791,000.0000 101.852% $805,649.32 Fixed Income ZIONS BANCORPORATION 4.500% 6/13/23 95,000.0000 105.659% $100,376.05 $23, 511, 508.24 Cash & Cash Equivalents CASH (30,801.2700) $1.0000 ($30,801.27) Cash&Cash Equivalents FIRSTAMERNGOVTOBLIGFDCLZ#3676 FGZXX 1,087,176.2600 $1.0000 $1,087,176.26 SUBTOTALS Cash & Cash Equivalents $1,056,374.99 Equities $43,496, 988.75 Fixed Income $39,205,682.58 TOTALS $83, 759, 046.32 JHIGHMARK@ CAPITAL MANAGEMENT PARS: Central Contra Costa Sanitary District 12 CCCSD — Pension Asset Allocation Total Assets: $47,142 Period Ending: 9/30/2021 3Q21 Return: 0.30% 1 Year Return: 8.95% Inception -to -Date Return: 6.56% Inception Date: 9-1-2017 Plan target rate of return: 5.14% Fixed I $31, 766 67.380/, Cash $542 1 1 501 Beginning Value Contributions Withdrawals Gain (Loss) Interest and Dividends Net Accrued Income Ending Market Value Equity ItiA R34 TO 3,359,081.81 7,245,356.05 -12,944,329.17 1,454,637.41 932,395.45 50.67 $47,192.22* * Ending Market Value differs from total market value on page 14 due to differences in reporting methodology. The above ending market value includes a cruals. HIGHMARK° PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT 13 Asset Allocation - Central Contra Costa Sanitary District Pension As of Third Quarter 2021 Equity 31.47% Range: 20%-40 % 14,834 Large Cap Core 10.05% IVV iShares Core S&P 500 ETF 4,739 2.95% VGIAX Vanguard Growth & Income Adm 1,392 Large Cap Value 1.54% IVE iShares S&P 500 Value ETF 727 1.08% DODFX Dodge & Cox International Stock 510 Large Cap Growth 0.94% IVW iShares S&P 500 Growth ETF 443 Mid Cap Core 2.82% IWR iShares Russell Mid -Cap ETF 1,330 Small Cap Value 2.54% UBVFX Undiscovered Managers Behavioral Val R6 1,198 Small Cap Growth 2.50% RSEJX Victory IRS Small Cap Growth R6 1,177 International Core 2.25% VEA Vanguard FTSE Developed Markets ETF 1,060 International Growth 1.07% MGRDX MFS International Growth R6 505 Emerging Markets 1.99% HHHFX Hartford Schroders Emerging Mkts Eq F 937 Real Estate 1.73% VNQ Vanguard Real Estate ETF 814 Fixed Income 67.38% Range: 50%-80% 31,766 Short -Term 3.60% VFSUX Vanguard Short -Term Investment -Grade Adm 1,698 12.91 % AGG iShares Core US Aggregate Bond ETF 6,086 Intermediate -Term 24.37% PTTRX PIMCO Total Return Instl 11,489 24.25% PTRQX PGIM Total Return Bond R6 11,432 High Yield 2.25% PHIYX PIMCO High Yield Instl 1,061 Cash 1.15% Range: 0%-20% 542 1.15% FGZXX First American Government Oblig Z 542 TOTAL 100.00% $47,142 HIGHMARK° PARS: Central Contra Costa Sanitary District 14 CAPITAL MANAGEMENT Me 7 Selected Period Performance PARS/CCCSD 115P - PENSION Account 6746055901 Period Ending: 9/30/2021 Year Inception to Date to Date 3 Months (9 Months) 1 Year 3 Years 09/01/2017 Cash Equivalents .00 .02 .03 1.00 1.09 Lipper Money Market Funds Index .00 .00 .00 .96 1.05 Total Fixed Income .11 -1.39 -.13 5.52 3.71 Bloomberg US Aggregate Bd Index .05 -1.55 -.90 5.36 3.48 Total Equities -2.03 8.68 27.83 12.21 12.59 Large Cap Funds .32 12.49 26.55 14.39 15.18 S&P 500 Composite Index .58 15.92 30.00 15.99 16.69 Mid Cap Funds -1.23 11.70 33.95 13.02 13.52 Russell Midcap Index -.93 15.17 38.11 14.22 14.61 Small Cap Funds -5.71 4.04 38.38 9.07 12.28 Russell 2000 Index -4. 36 12.41 47.68 10.54 13.11 International Equities -4.18 3.26 22.79 9.01 6.92 MSCI EAFE Index -.45 8.35 25.73 7.62 6.89 MSCI EM Free Index -8.09 -1.25 18.20 8.58 5.92 RR: RE ITS .64 22.32 33.57 11.42 8.63 Wilshire REIT Index 1.64 24.79 38.04 10.39 8.55 Total Managed Portfolio .30 2.75 8.95 7.93 6.56 CCCSD Pension Benchmark -.22 3.25 8.83 7.58 6.53 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% MIL 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 Jguarantee, and may lose value. HIGHMARK@ PARS: Central Contra Costa Sanitary District CAPITAL MANAGEMENT 15 Asset Type Cash & Cash Equivalents Cash & Cash Equivalents Equities Equities Equities Equities Equities Equities Equities Equities Equities Equities Equities Equities Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income SUBTOTALS Cash & Cash Equivalents Equities Fixed Income TOTALS JHIGHMARK@ CAPITAL MANAGEMENT Holdings - Reporting as of Trade Date Account: 6746055901- PARS/CCCSD 115P - PENSION As of: 30-Sep-2021 Asset Name Ticker Shares/Units Price Market Value CASH (50.6600) $1.0000 ($50.66) FIRSTAMERNGOVTOBLIGFDCLZ#3676 FGZXX 592.2100 $1.0000 $592.21 DODGE & COX INTL STOCK FD(CLSD)#1048 DODFX 10.7740 $47.3800 $510.47 HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 47.0450 $19.9100 $936.67 ISHARES RUSSELL MIDCAP ETF IWR 17.0000 $78.2200 $1,329.74 ISHARES S&P 500 GROWTH ETF IVW 6.0000 $73.9100 $443.46 ISHARES S&P 500 VALUE ETF IVE 5.0000 $145.4200 $727.10 ISHARES TR CORE S&P500 ETF IVV 11.0000 $430.8200 $4,739.02 MFS INTERNATIONAL GROWTH R6#4805 MGRDX 11.3420 $44.5300 $505.06 UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 14.8560 $80.6600 $1,198.28 VANGUARD FTSE DEVELOPED MARKETS ETF VEA 21.0000 $50.4900 $1,060.29 VANGUARD GRO & INC ADMIRAL SHRS #593 VGIAX 12.8890 $108.0100 $1,392.14 VANGUARD REAL ESTATE ETF VNQ 8.0000 $101.7800 $814.24 VICTORY IRS SM CAP GROW #279 RSEJX 12.6830 $92.8200 $1,177.24 ISHARES CORE US AGGREGATE BD ETF AGG 53.0000 $114.8300 $6,085.99 PIMCO HIGH YIELD,INSTL #108 PHIYX 116.8620 $9.0800 $1,061.11 PIMCO TOTAL RETURN INSTIL #35 PTRRX 1,108.9920 $10.3600 $11,489.16 PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 783.5770 $14.5900 $11,432.39 VNGRD ST TERM I NVMT GRADE ADM #539 VFSUX 155.3200 $10.9300 $1,697.65 PARS: Central Contra Costa Sanitary District $541.55 $14,833.71 $31, 766.30 $47,141.56 16 CENTRAL CONTRA COSTA SANITARY DISTRICT September 30, 2021 EQUITYLARGE CAP 3-Month YTD 1-Year 3-Year 5-Yea 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) 0.57 22 15.89 37 29.96 50 15.96 28 16.86 21 16.58 15 iShares S&P 500 Value ETF (4/17) -0.89 51 15.14 62 31.77 64 10.52 35 11.52 43 13.57 27 Vanguard Growth & Income Adm (12/16) -0.02 56 15.87 38 30.34 44 15.05 48 16.31 38 16.62 13 iShares S&P 500 Growth ETF (4/17) 1.81 11 16.27 12 28.62 32 20.03 46 20.93 45 18.74 35 S&P 500 TR USD 1�01 0.58 -- 15.92 MID - CAP EQUITY 30.00 FUNDS - 15.99 - 16.90 16.63 Shares Russell Mid -Cap ETF (3/16) -0.98 41 15.02 57 37.85 61 14.06 15 14.22 21 15.34 12 Russell Mid Cap TR USD -0.93 -- 15.17 38.11 - 14.22 - 14.39 - 15.52 - SMALL CAP EQUITY Undiscovered Managers Behwioral Val R6 (9/16) -1.96 48 25.35 34 79.57 10 8.43 41 10.79 39 15.66 Russell 2000 Value TR USD -2.98 -- 22.92 63.92 - 8.58 - 11.03 - 13.22 - Victory IRS Small Cap Growth R6 (2/19) -10.65 96 -10.25 99 10.00 100 9.64 90 17.13 56 16.34 Russell 2000 Growth TR USD -5.65 -- 2.82 33.27 - 11.70 - 15.34 - 15.74 INTERNATIONAL- • Dodge & Cox International Stock -3.33 84 8.42 58 35.19 24 5.99 20 7.39 29 7.77 18 Vanguard FTSE Developed Markets ETF (9/18) -1.52 53 8.26 34 26.60 25 8.22 39 9.21 29 8.64 28 MFS International Growth R6 -3.05 77 4.48 64 16.58 78 10.78 77 11.97 45 10.21 49 MSCI EAFE NR USD -0.45 8.35 25.73 -- 7.62 -- 8.81 8.10 Hartford Schroders Emerging Mkts Eq F -8.08 60 -2.07 71 18.86 56 10.59 31 10.92 23 7.53 IMSCI EM NR USD -8.09 -1.25 18.20 8.58 9.23 6.09 EQUITYREIT Vanguard Real Estate ETF (4/17) 0.68 59 22.19 48 33.49 48 11.97 42 7.52 47 11.53 33 Wilshire REIT Index 1.64 24.79 38.04 10.39 6.97 11.30 iShares Core US Aggregate Bond ETF (6/21) 0.06 31 -1.58 61 -0.93 70 5.30 50 2.89 57 2.95 60 PIMCO Total Return Instl 0.30 14 -0.77 54 0.28 77 5.85 45 3.65 41 3.92 36 PGIM Total Return Bond R6 (5/16) -0.01 75 -1.45 89 0.90 58 6.27 24 4.02 22 4.58 11 Vanguard Short -Term Investment -Grade Adm 0.14 35 0.35 44 1.34 41 4.02 18 2.71 23 2.64 19 Bloomberg US Agg Bond TR USD 0.05 -1.55 -0.90 5.36 2.94 3.01 PIMCO High Yield Instl (12/20) 0.78 33 3.35 74 8.97 73 6.25 37 5.72 40 6.75 31 ICE BofA US High Yield Mstr II Index 0.94 4.67 11.46 6.62 6.35 7.33 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 0 PARS: Central Contra Costa Sanitary District 17 CAPITAL MANAGEMENT