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HomeMy WebLinkAbout05.a. Receive HighMark OPEB and Pension Prefunding Sub-Trust Reports for the Fourth Quarter of Calendar Year 2021 (Continued from Feb. 22, 2022 meeting) Page 1 of 25 Item 5.a. CENTRAL SAN March 14, 2022 TO: FINANCE COMMITTEE FROM: KEVIN MIZUNO, FINANCE MANAGER REVIEWED BY: PHILIP 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 FOURTH QUARTER OF CALENDAR YEAR 2021 (CONTINUED FROM FEBRUARY22, 2022 MEETING) Attached for review is a trust performance overview provided by Highmark, as well as OPEB and Pension Pre-funding sub-trust investment reports for the quarter ending December 31, 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 3.93% and 2.32% for Central San's OPEB and Pension Pre-funding sub- trusts, respectively. The long-term targeted annual returns are 5.75% for the OPEB trust and 5.14% for the Pension Pre-funding trust. In comparison, the inception-to-date annual returns have been 9.71% and 6.73% 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, staff emphasizes that a Public Agency Retirement Services (PARS) system limitation results in "Contributions" and "Withdrawals" for the OPEB Trust appearing significantly overstated on page 2 of 18 in Attachment 1. This is caused by two issues: (1) a change in account number related to the establishment of the Pension Prefunding Trust in 2017, and (2) several changes to mutual fund investment share classes where movements of funds were reflected as withdrawals and contributions. As approved by the Board, nearly the entire balance of the Pension Pre-funding trust was liquidated to help finance the payoff of Central San's unfunded actuarial accrued liability (UAAL)totaling approximately $70.8 million. Following the payoff of the UAAL in June 2021, a residual amount of approximately$48 thousand was reported in the trust on December 31, 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 March 14, 2022 Special FINANCE Committee Meeting Agenda Packet- Page 83 of 111 Page 2 of 25 ATTACHMENTS: 1. Highmark Overview, Fourth Quarter 2021 2. PARS Investment Report, Fourth Quarter of 2021 (updated 03-01-22) March 14, 2022 Special FINANCE Committee Meeting Agenda Packet- Page 84 of 111 Page 3 of 25 Attachment 1 J HIGHMARK° 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: 4Q Quarter 2021 OPEB/Pension Report Dear Mr. Leiber, Market Commentary As a new year begins, we see three key investment themes to watch going forward: the Federal Reserve's pivot to reverse 2020's unprecedented monetary stimulus measures; inflation soaring to a 40-year high; and the challenge of maintaining the recovery even as the economy faces various headwinds, such as an overstimulated economy. 1. The Big Unwinding The Fed's intention to end its bond-buying program late in the first quarter of 2022 marks the beginning of a cycle of tightening the monetary reins.We expect that the Fed will raise short-term rates by 50 to 75 basis points over the course of two or three hikes in 2022 to tame building inflationary pressures. Quantitative tightening--shrinking the Fed's balance sheet through slowing the reinvestment of maturing securities--should also commence in 2022. Central banks around the world also might cut back on aggressive monetary stimulus programs and consider rate hikes of their own. • A return to positive real yields' may be a welcome change for investors whose income depends on risk-free U.S. Government bonds. Negative Real Yields 1.25 0.75 0.25 -0.25 -0.75 -1.25 Source: Federal Reserve Bank of St. Louis; Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity, Inflation-Indexed ' The inflation adjusted yield on the 10-Year U.S. Treasury has been negative since the beginning of 2020. March 14, 2022 Special FINANCE Committee Meeting Agenda Packet- Page 85 of 111 Page 4 of 25 Attachment 1 • A significant move higher in longer maturity interest rates could be tempered by investor demand abroad. Specifically, demand from Asian and European investors for U.S. government bonds with higher yields than their domestic equivalents might put a ceiling on our interest rates if both U.S. and foreign rates don't move in tandem. • The removal of monetary accommodation, especially during a lingering pandemic, could dampen economic recovery prospects if done too aggressively. 2. A Tale of Two Inflations A nearly 40-year peak in inflation rattled investors during 2021.2 Looking beneath the headlines, however, the primary sources of inflation—pandemic-related supply chain and production constraints as well as demand for goods and demand for services—followed different paths. Flush with stimulus cash and built-up savings during the pandemic, shoppers went on a buying spree while demand for services actually declined versus prior periods.3 But the worst of goods-driven inflation may be behind us if supply chains and production constraints normalize and consumer-savings levels continue to decline,4 while cheap credit due to low interest rates slowly wanes. • We expect core inflation to have run its course and settle lower by the end of 2022 to an annual rate of around 2.5%5. • Supply chain disruptions should ease in 2022 although the timing and extent is uncertain. 3. Looking for Goldilocks The Fed faces a daunting challenge and inflection point as it attempts to begin a tightening regime while simultaneously seeking to deliver on its two mandates of maximum employment and price stability. Too much tightening too soon could choke economic growth and, potentially, lead to recession. But tepid rate hikes could do too little to reduce inflation while leaving the Fed with a too small supply of"dry powder"to fight future downturns. A "Goldilocks"6 monetary approach will be a challenge given the Fed's narrow range of policy options. Complicating matters further, data the Fed relies on to make decisions have been whipsawed by the pandemic. • Regardless of how rapidly the Fed seeks to tighten economic conditions, COVID-era stimulus measures will impact the economy for some time before they are washed out. 2 CPI inflation was measured as increasing 6.8% year-on-year as of November 2021, the largest increase since 1982. Source: U.S. Bureau of Labor Statistics 3 For example, the energy and vehicle price segments of the CPI rose 33.3% and 21.1% respectively for twelve months ending November 2021 while prices for services including education and medical care each increased by only 1.7%. Source: U.S. Bureau of Labor Statistics. 4 The annual personal savings rate fell from 33.8% in April 2020 to 6.9% for the period ending November 2021. Source: U.S. Bureau of Economic Analysis 5 As measured by the Core PCE 6 "Not too hot, not too cold,just right" according to the three bears fairy tale. March 14, 2022 Special FINANCE Committee Meeting Agenda Packet- Page 86 of 111 Page 5 of 25 Attachment 1 • The potential for a Fed policy misjudgment, such as too rapidly draining bank reserves built up during quantitative easing, could be high going forward. • The Fed is expected to keep close tabs on bond market reactions to its changes and is more aware than ever that a change of course may be required if markets view its moves as too harsh too soon or, conversely, not enough or too slow. Looking Ahead U.S. equities, as measured by the S&P 500 Index, ended the year on a record high. We believe that corporate earnings growth rates will remain positive in 2022, but rising rates might put a damper on stock valuations and earnings-per-share growth. Similar to prior record equity market peaks, we expect 2022 to be marked by more moderate advances.' Fiscal stimulus uncertainty, particularly the on-again, off-again Build Back Better legislation, could continue to perplex markets in 2022 as will the ongoing pandemic. The knock-on effects of a more hawkish Fed may be another headwind as rate hikes are often seen as negative for stocks. • As global central banks let the air out of ballooning balance sheets, volatility across asset classes might increase, but we expect above-average global economic momentum to continue despite the headwinds of the pandemic and an overly-stimulated global economy. • The continuing rise of positive COVID-19 infections as the Omicron variant spreads is akin to two steps forward, one step back and represents an additional headwind to risk asset performance. But reports indicate that Omicron's less deadly effects on those vaccinated may help bring us closer to herd immunity and the end of the worst of the pandemic.$ • Equity valuations will be scrutinized and we anticipate a shift from the growth names that dominated 2021's 28.7 percent total return for the S&P 5009 to more cyclically-sensitive stocks that underperformed during the pandemic, including small capitalization value and international equities. Plan Performance The Central Contra Costa Sanitary District OPEB Plan gained 3.93% gross of investment fees for the fourth quarter, which exceeded the Plan's benchmark target of 3.76%. Fixed income returns declined -0.08%, which slightly underperformed the Bloomberg US Aggregate Bond Index return of .01%. With the short-end of the curve selling off in the quarter on fears that the Federal Reserve may become more aggressive in hiking rates, it was actually our short maturity bond fund that lagged the most in the quarter. The Vanguard Short-Term Investment grade Bond Fund declined -0.69% in the fourth quarter. Supporting performance was the PGIM Total Return Bond Fund +0.29% and the Pimco High Yield Fund which gained 0.68%. Credit spreads were mixed in the quarter as positive developments from corporate earnings were nullified by concerns surrounding the Omicron variant, inflation trends, and speculation on both the end to quantitative easing and the potential path to the Fed raising the discount rate. For example, the S&P 500 Index was essentially flat, closing at 2,137 on July 11, 2016 after peaking at 2,131 on May 21, 2015. Source: FactSet 8 The discovery of additional COVID-19 variants could create new headwinds. 9 Source: FactSet March 14, 2022 Special FINANCE Committee Meeting Agenda Packet- Page 87 of 111 Page 6 of 25 Attachment 1 Equity returns for the OPEB Plan were encouraging, with the stocks in the portfolio higher by +7.42%). REIT equity continued to generate strong returns with the Vanguard REIT ETF gaining 14.89% in the fourth quarter. Large cap equity was supportive as well, with the S&P500 Index gaining 11.03%. Further, two of the three developed international equity managers outperformed the MSCI-EAFE Index in the quarter. Additionally, the small cap segment out-performed (3.21% vs. Russell 2000 Index 2.14%), solely on the performance of the Undiscovered Managers Behavioral Value Fund, which gained 7.31%, and ranked in the 28th percentile of small cap value managers as measured by the Morningstar US Fund Small Value Universe. However, our small cap growth manager, the Victory RS Small Cap Growth Fund generated another disappointing quarter, declining -0.55%, and ranking in the 73rd percentile of the Morningstar US Fund Small Growth Universe. As well the fund ended the calendar year in the 98th percentile of the same universe. The Fund has been on our watch list for several quarters. In the first week of January, we sold out of the Fund, replacing it in the interim with the Vanguard Small Cap Growth ETF. 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, but as previously mentioned, the Victory RS Small Cap Growth Fund was replaced in early January. The Central Contra Costa Sanitary District Pension Plan gained 2.32% in the quarter, gross of investment fees, which exceeded the District's Plan benchmark target of 2.18%. Andrew Brown March 14, 2022 Special FINANCE Committee Meeting Agenda Packet- Page 88 of 111 Attachment 2 PARS: Central Contra Costa Sanitary District OPEB and Pension Plan Fourth Quarter 2021 Presented by Andrew Brown, CFA JHIGHMARKO CAPITAL MANAGEMENT Economic and Market Forecast February 2022 2022 Assumptions GDP 3.3% - 4.0% S&P 500 Earnings $220 - $225 Unemployment 3.6% - 4.4% Core PCE Inflation 2.8% - 3.3% Fed Funds Target 0.5% - 1 .25% JHIGHMARK Source: HighMark Asset Allocation Committee 2 CAPITAL MANAGEMENT Investment Summary Since Inception_ CCC.7D — OPEB Beginning Value 566,683.26 Asset Allocation Contributions 107,496,904.99 Withdrawals -65,114,740.31 Total Assets: $87,662,590 Gain (Loss) 25,020,779.07 Interest and Dividends 19,692,962.51 Period Ending: 12-31-2021 Net Accrued Income 126,040.66 4Q21 Return: 3.93% Ending Market Value $87,788,630.18- 1 Year Return: 10.05% Inception-to-Date Return: 9.71 % Cash Inception Date:4-1-2009 $926,254 1.06% Plan target rate of return: 5.75% Equity $46,819,466 53410/, Fixed Income $39,916,8703 45.530]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. JHIGHMARK PARS: Central Contra Costa Sanitary District 3 CAPITAL MANAGEMENT Asset Allocation - Central Contra Costa Sanitary District OPEB As of Fourth Quarter 2021 Current Asset Allocation Investment Vehicle Equity 53.41% Range:40%-60% 46,819,466 Large Cap Core 10.17% IVV iShares Core S&P 500 ETF 8,911,127 7.04% VGIAX Vanguard Growth & Income Adm 6,173,702 Large Cap Value 5.65% IVE iShares S&P 500 Value ETF 4,952,484 Large Cap Growth 5.08% IVW iShares S&P 500 Growth ETF 4,453,503 Mid Cap Core 5.11% IWR iShares Russell Mid-Cap ETF 4,482,457 Small Cap Value 4.44% UBVFX Undiscovered Managers Behavioral Val R6 3,890,445 Small Cap Growth 4.25% RSEJX Victory RS Small Cap Growth R6 3,723,021 International Core 3.80% VEA Vanguard FTSE Developed Markets ETF 3,334,269 International Value 1.27% DODFX Dodge & Cox International Stock 1,112,939 International Growth 1.25% MGRDX MFS International Growth R6 1,099,776 Emerging Markets 3.22% HHHFX Hartford Schroders Emerging Mkts Eq F 2,818,677 Real Estate 2.13% VNQ Vanguard Real Estate ETF 1,867,065 Fixed Income 45.53% Range: 40%-60% 39,916,870 27.27% Core Fixed Income Portfolio 23,907,258 Short-Term 1.69% VFSUX Vanguard Short-Term Investment-Grade Adm 1,483,481 Intermediate-Term 7.64% PTTRX PIMCO Total Return Instl 6,700,833 7.67% PTRQX PGIM Total Return Bond R6 6,724,080 High Yield 1.26% PHIYX PIMCO High Yield Instl 1,101,219 Cash 1.06% Range: 0%-20% 926,254 1.06% FGZXX First American Government Oblig Z 926,254 TOTAL 100.00% $87,662,590 JHIGHMARK PARS: Central Contra Costa Sanitary District 4 CAPITAL MANAGEMENT Selected Period Performance CCCSD - OPEB Period Ending: 12/31/2021 Year Inception to Date to Date 3 Months (1 Year) 3 Years 5 Years 10 Years 04/01/2009 Cash Equivalents .00 .02 .81 .98 .52 .46 Lipper Money Market Funds Index .00 .00 .79 .38 Fixed Income ex Funds -.07 -1.06 5.24 Total Fixed Income -.08 -.95 5.24 3.96 3.40 4.45 Bloomberg US Aggregate Bd Index .01 -1.54 4.79 3.57 2.90 3.85 Total Equities 7.42 20.25 22.06 15.48 13.77 14.90 Large Cap Funds 11.07 28.64 25.38 17.93 16.18 16.42 S&P 500 Composite Index 11.03 28.71 26.07 18.47 16.55 17.39 Mid Cap Funds 6.48 22.43 23.08 14.65 13.18 Russell Midcap Index 6.44 22.58 23.29 15.10 14.91 17.30 Small Cap Funds 3.45 11.13 20.07 13.80 14.53 17.19 Russell 2000 Index 2.14 14.82 20.02 12.02 13.23 15.53 International Equities 1.12 4.75 13.96 10.32 7.22 9.26 MSCI EAFE Index 2.69 11.26 13.54 9.55 8.03 9.38 MSCI EM Free Index -1.31 -2.54 10.94 9.87 5.49 8.78 RR: REITS 15.02 40.36 19.09 Wilshire REIT Index 17.14 46.18 19.19 10.92 11.47 17.83 Total Managed Portfolio 3.93 10.05 13.69 9.85 8.61 9.71 CCCSD OPEB Benchmark 3.76 10.21 13.25 9.40 8.39 9.65 Account Inception:4/2009 From April 1, 2009 to July 31, 2017,the portfolio was invested in account 6746030600, PARS/Central Contra Costa Sant PRHCP. The portfolio then moved to account 6746055900, PARS/CCCSD 115 - OPEB. 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 5 CAPITAL MANAGEMENT Fixed Income Portfolio: Statistics As of Fourth Quarter 2021 CCCSD BC Aggregate Bond OPEB Index Weighted Average Maturity 7.35 years 8.57 years I Effective Duration 5.77 years 6.41 years Average Coupon 2.47% 2.45% Yield to Maturity 1.76% 1.72% Average Quality Aa3 Aa2 JHIGHMARK PARS: Central Contra Costa Sanitary District 6 CAPITAL MANAGEMENT Source: BondEdge G,Of��eeting Agenda Paeket Page 94 of 111 Fixed Income Portfolio: Sectors As of Fourth Quarter 2021 40.0% o 35.0/a 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 2.5% 32.3% 0.0% 33.3% 0.7% 18.5% 0.0% 11.8% 1.0% ■Barclays U.S.Aggregate Bond Index 0.0% 38.5% 1.3% 25.3% 4.1% 28.4% 0.0% 0.3% 2.1% JHIGHMARK PARS: Central Contra Costa Sanitary District 7 CAPITAL MANAGEMENT Source: BondEdge Fixed Income Portfolio: Effective Duration and Effective Maturity As of Fourth Quarter 2021 Effective Duration Effective Maturity 30% 35°/a 30°/a 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 10+ 0% Yrs. Yrs. 0-1 Yr. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 Yrs. 10+Yrs. ■CCCSD OP EB 10.67% 28.34% 25.45% 5.42% 14.58% 15.55% ■CCCSD OPEB 10.67% 20.62% 23.85% 13.12% 13.93% 17.82% BC Aggregate Bond Index 0.30% 29.50% 32.50% 11.63% 7.47% 18.61% BC Aggregate Bond Index 0.13% 18.95% 26.33% 16.96% 18.13% 19.50% JHIGHMARK PARS: Central Contra Costa Sanitary District 8 CAPITAL MANAGEMENT Source: BondEdge Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:31-Dec-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 23,534.3390 $47.2900 $1,112,938.89 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 147,884.4430 $19.0600 $2,818,677.48 Equities ISHARES RUSSELL MIDCAP ETF IWR 53,999.0000 $83.0100 $4,482,456.99 Equities ISHARES S&P 500 GROWTH ETF IVW 53,227.0000 $83.6700 $4,453,503.09 Equities ISHARES S&P 500 VALUE ETF IVE 31,619.0000 $156.6300 $4,952,483.97 Equities ISHARES TR CORE S&P500 ETF IVV 18,682.0000 $476.9900 $8,911,127.18 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 25,195.3330 $43.6500 $1,099,776.29 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 46,608.8960 $83.4700 $3,890,444.55 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 65,301.0000 $51.0600 $3,334,269.06 Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 59,197.4510 $104.2900 $6,173,702.16 Equities VANGUARD REAL ESTATE ETF VNQ 16,094.0000 $116.0100 $1,867,064.94 Equities VICTORY RS SM CAP GROW#279 RSEJX 46,907.1610 $79.3700 $3,723,021.37 Fixed Income PIMCO HIGH YIELD,INSTL #108 PHIYX 121,951.1190 $9.0300 $1,101,218.60 Fixed Income PIMCO TOTAL RETURN INSTL #35 PTTRX 652,466.6630 $10.2700 $6,700,832.63 Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 464,049.6920 $14.4900 $6,724,080.04 Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 137,741.9460 $10.7700 $1,483,480.76 Fixed Income AMERICREDIT AUTO REC 3.580% 10/18/24 AAR3524A 91,858.3100 100.524% $92,339.65 Fixed Income CITIGROUP INC SR NT 1.462% 6/09/27 CIS0027A 160,000.0000 98.294% $157,270.40 Fixed Income DEVON ENERGY CORP NE 4.500% 1/15/30 DEC4530A 52,000.0000 107.360% $55,827.20 Fixed Income EXETER ATMOBILE REC 1.050% 5/15/26 EAR0026A 80,000.0000 99.772% $79,817.60 Fixed Income UNITED STATES TREA 0.00001% 10/31/25 UST0025C 215,000.0000 96.652% $207,801.80 Fixed Income UNITED STATES TREAS 0.000% 3/31/26 UST0026B 498,000.0000 98.102% $488,547.96 Fixed Income UNITED STATES TREAS 0.250% 6/15/24 UST0224B 228,000.0000 98.527% $224,641.56 Fixed Income UNITED STATES TREAS 0.375% 11/30/25 UST0025D 275,000.0000 96.981% $266,697.75 Fixed Income UNITED STATES TREAS 0.500% 2/28/26 UST0026A 129,000.0000 97.160% $125,336.40 Fixed Income UNITED STATES TREAS 0.500% 11/30/23 UST0523A 1,631,000.0000 99.617% $1,624,753.27 Fixed Income UNITED STATES TREAS 0.0001% 5/31/26 UST0026D 110,000.0000 97.945% $107,739.50 Fixed Income VERIZON COMMUNICATIO 2.987% 10/30/56 VC22956A 118,000.0000 94.659% $111,697.62 Fixed Income ACACN 2015-1A NTS 3.600% 9/15/28 A21\13627 140,204.6800 100.740% $141,242.19 Fixed Income AERCAP IRELAND CAPIT 3.300% 1/30/32 AIC3332 200,000.0000 101.877% $203,754.00 JHIGHMARK PARS: Central Contra Costa Sanitary District 9 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900-PARS/CCCSD 115P-OPEB As of:31-Dec-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income ALASKAAIRLINES EQ 4.800% 2/15/29 AAE4829 119,809.5200 109.254% $130,896.69 Fixed Income AT&T INC GLBL NT 3.500% 6/01/41 AIG3541 260,000.0000 102.774% $267,212.40 Fixed Income ATT 2013-1-22A 3.070% 3/15/48 A233048 235,000.0000 100.082% $235,192.70 Fixed Income BANK OF AMERICA CORP 3.194% 7/23/30 BOA3130 106,000.0000 105.459% $111,786.54 Fixed Income BARCLAYS PLC F/R 4.610% 2/15/23 BPF4623 235,000.0000 100.428% $236,005.80 Fixed Income BOEING CO CR SEN SR 2.196% 2/04/26 BCC2126 175,000.0000 99.976% $174,958.00 Fixed Income BRITISH AIRWAYS 20134.625%12/20/25 BA24625 97,705.2400 104.274% $101,881.16 Fixed Income BROA DSTONE NET LEASE 2.600% 9/15/31 BNL2631 130,000.0000 97.046% $126,159.80 Fixed Income BRUNSWICK CORP 2.400% 8/18/31 BC22431 130,000.0000 95.885% $124,650.50 Fixed Income CAPITAL ONE CC TR 1.720% 8/15/24 C000024 250,000.0000 100.826% $252,065.00 Fixed Income CARVANA AUTO RECS TR 0.660% 6/12/28 CAR0628 260,000.0000 99.105% $257,673.00 Fixed Income COCA COLA CO 4.125% 3/25/40 CCC4140 70,000.0000 118.461% $82,922.70 Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 77,000.0000 130.744% $100,672.88 Fixed Income CYRUSONE LP/CYRUSONE 2.150%11/01/30 CL22130 130,000.0000 98.957% $128,644.10 Fixed Income DARDEN RESTAURANTS 4.550% 2/15/48 DR44548 175,000.0000 115.618% $202,331.50 Fixed Income DNKN 2017-1A A211 4.030%11/20/47 D2A4047 178,062.5000 104.373% $185,849.17 Fixed Income DRIVE AUTO REC TR 200.580%12/15/25 DAR0025 195,000.0000 99.403% $193,835.85 Fixed Income ENERGY TRANSFER OPER 5.800% 6/15/38 ETO5838 125,000.0000 121.126% $151,407.50 Fixed Income EXETER AUTO RECV TR 0.690% 1/15/26 EAR0826 175,000.0000 99.324% $173,817.00 Fixed Income F&G GLOBAL FUNDING 2.000% 9/20/28 FGF2028 130,000.0000 97.220% $126,386.00 Fixed Income FAIRFAX US INC 4.875% 8/13/24 FU14824 115,000.0000 106.731% $122,740.65 Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 77,741.8600 103.894% $80,769.13 Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 116,709.1000 106.000% $123,711.65 Fixed Income FGLMC#J30401 3.000% 1/01/30 J30401F 87,602.4900 105.620% $92,525.75 Fixed Income FGLMC#Q13204 3.000% 11/01/42 Q13204F 86,876.4400 106.231% $92,289.71 Fixed Income FHLMC G08823 3.500% 7/01/48 G08823F 74,223.3200 105.567% $78,355.33 Fixed Income FHLMC G14702 2.5000%3/1/2023 G14702F 21,066.1800 103.381% $21,778.43 Fixed Income FHLMC G15252 3.000%12/01/29 G15252F 73,731.2700 105.628% $77,880.87 Fixed Income FHLMC Q38373 3.500% 1/01/46 Q38373F 65,299.2900 107.286% $70,057.00 Fixed Income FHLMC RB5091 2.500%11/01/40 RB5091A 320,823.4600 102.875% $330,047.13 JHIGHMARK PARS: Central Contra Costa Sanitary District 10 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900-PARS/CCCSD 115P-OPEB As of:31-Dec-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FHLMC SB0380 3.500% 2/01/34 SB0380A 96,051.4200 106.783% $102,566.59 Fixed Income FHLMC SB8006 3.000% 9/01/34 SB8006A 84,099.5700 104.967% $88,276.80 Fixed Income FHLMC V60586 3.0000%8/1/2029 V60586F 77,641.3700 105.503% $81,913.97 Fixed Income FIRST HORIZON CORPOR4.000% 5/26/25 FHC4025 145,000.0000 106.907% $155,015.15 Fixed Income FNMA#MA3238 3.500%11/01/47 MA3238A 47,956.0400 105.895% $50,783.05 Fixed Income FNMA AL8174 3.5000%2/1/2046 AL8174A 151,059.8500 107.183% $161,910.48 Fixed Income F N MA A L8924 3.0000%12/1/2030 AL8924A 124,956.8200 104.795% $130,948.50 Fixed Income FNMA AL9376 3.0000%8/1/2031 AL9376A 71,284.2900 104.874% $74,758.69 Fixed Income FN MAAL9861 3.000% 8/01/30 AL9861A 174,790.1600 105.035% $183,590.84 Fixed Income FN MAAS4916 3.000% 5/01/30 AS4916A 116,366.7800 105.092% $122,292.18 Fixed Income FNMA AS7729 3.0000%8/1/2046 AS7729A 117,268.6500 105.416% $123,619.92 Fixed Income FNMA AT0293 3.0000%3/1/2043 AT0293A 83,152.6100 106.165% $88,278.97 Fixed Income FNMA BC1486 3.0000%8/1/2046 BC1486A 109,381.6100 105.414% $115,303.53 Fixed Income FNMA BM4913 3.000% 5/01/46 BM4913A 63,628.6800 105.436% $67,087.54 Fixed Income FNMA CA6348 2.500% 7/01/50 CA6348A 215,712.5100 102.217% $220,494.86 Fixed Income FNMA CA6638 2.500% 8/01/50 CA6638A 267,280.6700 102.121% $272,949.69 Fixed Income FNMA CA6801 2.500% 8/01/50 CA6801A 298,028.7700 102.141% $304,409.57 Fixed Income FNMA CA7231 2.500%10/01/50 CA7231A 257,638.1600 102.329% $263,638.55 Fixed Income FNMA FM3494 2.500% 4/01/48 FM3494A 118,537.2800 102.635% $121,660.74 Fixed Income FNMA MA2730 2.500% 8/01/46 MA2730A 263,935.2700 102.166% $269,652.11 Fixed Income FNMA MA2779 2.0000%10/1/2026 MA2779A 50,085.8700 102.470% $51,322.99 Fixed Income FNMA MA2895 3.000% 2/01/47 MA2895A 69,916.8700 104.565% $73,108.58 Fixed Income FNMA MA3210 3.500% 11/01/47 MA3210A 45,055.5900 106.019% $47,767.49 Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 36,884.8800 105.711% $38,991.38 Fixed Income FNMA MA3332 3.500% 3/01/48 MA3332A 61,374.0400 105.756% $64,906.73 Fixed Income FNMA MA3489 3.500% 10/01/33 MA3489A 33,180.3700 105.625% $35,046.77 Fixed Income FNMA MA3536 4.000% 12/01/48 MA3536A 16,731.5300 106.259% $17,778.76 Fixed Income FNMA MA4123 2.000% 9/01/35 MA4123A 199,460.4900 102.470% $204,387.16 Fixed Income FNMA UMBS INT 2.000% 8/01/36 CB1446A 204,318.4900 102.881% $210,204.91 Fixed Income FORD CR AUTO OWN TR 1.870% 3/15/24 FCA0024 87,419.6100 100.662% $87,998.33 JHIGHMARK PARS: Central Contra Costa Sanitary District 11 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:31-Dec-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FORD CREDIT FLRPLN 3.040% 3/15/24 FCF3024 145,000.0000 100.712% $146,032.40 Fixed Income GM FINLAUTO LEASE 2.040% 12/20/23 GFA2023 235,000.0000 100.770% $236,809.50 Fixed Income GOLDMAN SACHS BIDS 3.691% 6/05/28 GSB3628 110,000.0000 107.684% $118,452.40 Fixed Income HASBRO INC 3.550% 11/19/26 H133526 100,000.0000 107.214% $107,214.00 Fixed Income HELMERICH&PAYNE IN 2.900% 9/29/31 HP12931 95,000.0000 98.135% $93,228.25 Fixed Income LOS ANGELES REV BDS 6.574% 7/01/45 LAR6545 100,000.0000 162.249% $162,249.00 Fixed Income MOTOROLA SOLUTIONS 5.500% 9/01/44 MS55544 95,000.0000 130.167% $123,658.65 Fixed Income MVW 2020-1 1.740% 10/20/37 M211737 164,159.2600 100.067% $164,269.25 Fixed Income NGPL PIPECO LLC SR 3.250% 7/15/31 NPL3231 135,000.0000 101.578% $137,130.30 Fixed Income ONE GAS INC SR NT 1.100% 3/11/24 OG11124 175,000.0000 99.455% $174,046.25 Fixed Income ONEBEACON U S HLDG 4.600%11/09/22 OUS4622 120,000.0000 102.799% $123,358.80 Fixed Income PACIFIC GAS&ELEC 3.150% 1/01/26 PGE3126 125,000.0000 102.213% $127,766.25 Fixed Income PENN MUTUAL LIFE INS 3.800% 4/29/61 PML3861 175,000.0000 108.183% $189,320.25 Fixed Income PHYSICIANS RLTY LP 3.950% 1/15/28 PRL3928 170,000.0000 109.213% $185,662.10 Fixed Income PRIMERICA INC SR NT 2.800% 11/19/31 PIS2831 70,000.0000 101.077% $70,753.90 Fixed Income SANTANDER RENG AT LN 2.800% 1/26/32 RA2832 230,000.0000 103.164% $237,277.20 Fixed Income SANTANDER R ETA I L A UT 3.660% 5/20/24 SRA3624 270,000.0000 100.528% $271,425.60 Fixed Income SBA TOWER TRUST 1.631% 5/15/51 STT1651 140,000.0000 98.388% $137,743.20 Fixed Income SCHWAB CHARLES F/R 4.000% SCC0049 145,000.0000 102.000% $147,900.00 Fixed Income SPRINT SPECTRUM CO 4.738% 9/20/29 SSC4729 162,500.0000 104.620% $170,007.50 Fixed Income TAOT2019-CA3MTGE 1.910% 9/15/23 T2A1923 96,171.2500 100.523% $96,674.23 Fixed Income TIME WARNER CABLE NT 7.300% 7/01/38 TWC7338 125,000.0000 141.531% $176,913.75 Fixed Income TOYOTA AUTO RECV OWN 2.520% 5/15/23 TAR2523 32,949.8600 100.217% $33,021.36 Fixed Income TRI-STATE GENERATION 6.000% 6/15/40 TG66040 115,000.0000 134.926% $155,164.90 Fixed Income UNITEDAIRI4-2A 3.750% 9/03/26 UA13726 99,430.3000 104.457% $103,861.91 Fixed Income UNITED STATES TREAS 0.750% 11/15/24 UST0724 300,000.0000 99.438% $298,314.00 Fixed Income UNITED STATES TREAS 0.875% 9/30/26 UST0826 400,000.0000 98.215% $392,860.00 Fixed Income UN ITED STATES TREAS 1.000%12/15/24 UST1024 95,000.0000 100.109% $95,103.55 Fixed Income UN ITED STATES TREAS 1.125%10/31/26 UST1126 105,000.0000 99.336% $104,302.80 Fixed Income UNITED STATES TREAS 1.250% 11/30/26 UST1226 278,000.0000 99.938% $277,827.64 JHIGHMARK PARS: Central Contra Costa Sanitary District 12 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900-PARS/CCCSD 115P-OPEB As of:31-Dec-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income UNITED STATES TREAS 1.375% 11/15/31 UST1331 604,000.0000 98.734% $596,353.36 Fixed Income UNITED STATES TREAS 1.625% 5/15/31 UST1631 1,274,000.0000 101.266% $1,290,128.84 Fixed Income UNITED STATES TREAS 1.625%10/31/26 UST1626 150,000.0000 101.691% $152,536.50 Fixed Income UNITED STATES TREAS 1.750% 8/15/41 UST1741 39,000.0000 96.953% $37,811.67 Fixed Income UNITED STATES TREAS 2.000%11/15/41 UST0241 888,000.0000 101.141% $898,132.08 Fixed Income UNITED STATES TREAS 2.250% 5/15/41 UST2241 280,000.0000 105.031% $294,086.80 Fixed Income UNTD AIR 2013-1 4.300% 8/15/25 UA24325 163,239.6400 104.531% $170,636.03 Fixed Income VERIZON OWNER TR 1.940% 4/20/24 VOT0024 313,355.7300 100.686% $315,505.35 Fixed Income WESTLAKE AUTO RECV 4.000% 10/16/23 WAR4023 87,489.1700 100.639% $88,048.23 Fixed Income WESTLAKE CHEM CORP 0.001% 8/15/51 WCC0051 105,000.0000 96.309% $101,124.45 Fixed Income WORLD OMNI AUTO 2.500% 4/17/23 WOA2523 7,548.0300 100.086% $7,554.52 Fixed Income ANHEUSER-BUSCH INBEV WLDW IN BUD/42 125,000.0000 125.431% $156,788.75 Fixed Income BLOCK F I N L CORP BIDS 5.250%10/01/25 HRB/25 80,000.0000 110.796% $88,636.80 Fixed Income COMMONWEALTH EDISON 5.875% 2/01/33 EXC/33 115,000.0000 128.416% $147,678.40 Fixed Income HESS CORP HES/33 175,000.0000 133.613% $233,822.75 Fixed Income ASSOCIATED BANC-CORP 4.250% 1/15/25 ASB25 115,000.0000 105.900% $121,785.00 Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 85,000.0000 139.404% $118,493.40 Fixed Income PLAINS ALLAMERN PIP 6.700% 5/15/36 PAA36 140,000.0000 122.028% $170,839.20 Fixed Income BANK OF NOVA SCOTIA 90,000.0000 107.156% $96,440.40 Fixed Income BANK OF NY MELLON 3.750% 160,000.0000 100.357% $160,571.20 Fixed Income BOARDWALK PIPELINES 4.800% 5/03/29 125,000.0000 111.992% $139,990.00 Fixed Income BRITISH AIRWAYS PLC 3.300% 6/15/34 104,836.4500 102.955% $107,934.37 Fixed Income DELTA AIR LINES 2.500%12/10/29 103,735.4100 99.621% $103,342.36 Fixed Income FEDERAL EX CORP 1.875% 8/20/35 137,246.4800 98.451% $135,120.53 Fixed Income JPMORGAN CHASE&CO 3.650% 155,000.0000 99.750% $154,612.50 Fixed Income PNC FINLSVCS GROUP 3.400% 135,000.0000 98.424% $132,872.40 Fixed Income QORVO INC 4.375%10/15/29 30,000.0000 106.125% $31,837.50 Fixed Income ROSS STORES INC 4.800% 4/15/30 125,000.0000 114.960% $143,700.00 Fixed Income SPI RITAlRLI NES 2017-1 89,172.6400 98.259% $87,620.14 Fixed Income TRUISTFINLCORPF/R5.125% 115,000.0000 105.500% $121,325.00 JHIGHMARK PARS: Central Contra Costa Sanitary District 13 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:31-Dec-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income UNITED STATES TREAS 1.875% 2/15/51 476,000.0000 98.938% $470,944.88 Cash&Cash Equivalents CASH (35,505.1700) $1.0000 ($35,505.17) Cash&Cash Equivalents FIRSTAMERN GOVTOBLIG FDCLZ#3676 FGZXX 961,758.6700 $1.0000 $961,758.67 SUBTOTALS Cash&Cash Equivalents $926,253.50 Equities $46,819,465.97 Fixed Income $39,916,870.05 TOTALS $87,662,589.52 JHIGHMARK PARS: Central Contra Costa Sanitary District 14 CAPITAL MANAGEMENT Investment Summary Since Inception_ CCC.7D — Pension Beginning Value 3,359,081.81 Asset Allocation Contributions 7,245,356.05 Withdrawals -12,944,360.47 Total Assets: $48,250 Gain (Loss) 1,454,988.16 Interest and Dividends 933,184.92 Period Ending: 12-31-2021 Net Accrued Income 55.71 4Q21 Return: 2.32% Ending Market Value $48,306.18* 1 Year Return: 5.13% Inception-to-Date Return: 6.73% 0504 Inception Date:9-1-2017 1.04%' Equity $15,998 Plan target rate of return: 5.14% 33.160/, Fixed Income $31,748 65.800/, * Ending Market Value differs from total market value on page 14 due to differences in reporting methodology. The above ending market value includes cruals. a HIGHMARK® PARS: Central Contra Costa Sanitary District 15 CAPITAL MANAGEMENT Asset Allocation - Central Contra Costa Sanitary District Pension As of Fourth Quarter 2021 Current Asset Allocation Investment Vehicle Equity 33.16% Range: 20%-40% 15,998 Large Cap Core 10.87% IVV iShares Core S&P 500 ETF 5,247 3.22% VGIAX Vanguard Growth & Income Adm 1,551 Large Cap Value 1.62% IVE iShares S&P 500 Value ETF 783 1.02% DODFX Dodge & Cox International Stock 493 Large Cap Growth 1.04% IVW iShares S&P 500 Growth ETF 502 Mid Cap Core 2.92% IWR iShares Russell Mid-Cap ETF 1,411 Small Cap Value 2.89% UBVFX Undiscovered Managers Behavioral Val R6 1,394 Small Cap Growth 2.77% RSEJX Victory RS Small Cap Growth R6 1,335 International Core 2.22% VEA Vanguard FTSE Developed Markets ETF 1,072 International Growth 1.01% MGRDX MFS International Growth R6 488 Emerging Markets 1.88% HHHFX Hartford Schroders Emerging Mkts Eq F 909 Real Estate 1.68% VNQ Vanguard Real Estate ETF 812 Fixed Income 65.80% Range: 50%-80% 31,748 Short-Term 3.49% VFSUX Vanguard Short-Term Investment-Grade Adm 1,686 12.53% AGG iShares Core US Aggregate Bond ETF 6,046 Intermediate-Term 23.79% PTTRX PIMCO Total Return Instl 11,480 23.77% PTRQX PGIM Total Return Bond R6 11,467 High Yield 2.21% PHIYX PIMCO High Yield Instl 1,068 Cash 1.04% Range: 0%-20% 504 1.04% FGZXX First American Government Oblig Z 504 TOTAL 100.00% $48,250 JHIGHMARK PARS: Central Contra Costa Sanitary District 16 CAPITAL MANAGEMENT G,Of��Meeting Agenda Paeket Page 104 of 111 Selected Period Performance PARS/CCCSD 115P - PENSION Account 6746055901 Period Ending: 12/31/2021 Year Inception to Date to Date 3 Months (1 Year) 3 Years 09/01/2017 Cash Equivalents .00 .02 .82 1.03 Lipper Money Market Funds Index .00 .79 .99 Total Fixed Income -.11 -1.50 5.02 3.47 Bloomberg US Aggregate Bd Index .01 -1.54 4.79 3.27 Total Equities 7.15 16.45 20.64 13.61 Large Cap Funds 10.95 24.81 24.09 17.02 S&P 500 Composite Index 11.03 2P 7 26.07 18.48 Mid Cap Funds 6.45 18.90 21.85 14.33 Russell Midcap Index 6.44 22.58 23.29 15.36 Small Cap Funds 3.49 7.67 18.47 12.42 Russell 2000 Index 2.14 14.82 20.02 12.86 International Equities 1.20 4.50 13.85 6.80 MSCI EAFE Index 2.69 11.26 13.54 7.13 MSCI EM Free Index -1.31 -2.54 10.94 5.25 RR: RE ITS 14.96 40.61 19.05 11.65 Wilshire REIT Index 17.14 46.18 19.19 12.05 Total Managed Portfolio 2.32 5.13 10.00 6.73 CCCSD Pension Benchmark 2.18 5.50 9.60 6.68 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. JHIIGHMARK@ PARS: Central Contra Costa Sanitary District 17 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055901-PARS/CCCSD 115P-PENSION As of:31-Dec-2021 Asset Type Asset Name Ticker Shares/Units Price Market Value Cash&Cash Equivalents CASH (55.7000) $1.0000 ($55.70) Cash&Cash Equivalents FI RST AMERNGOVT OBLIGFDCIL Z#3676 FGZXX 559.8000 $1.0000 $559.80 Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 10.4330 $47.2900 $493.38 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 47.7060 $19.0600 $909.28 Equities ISHARES RUSSELL MIDCAP ETF IWR 17.0000 $83.0100 $1,411.17 Equities ISHARES S&P 500 GROWTH ETF IVW 6.0000 $83.6700 $502.02 Equities ISHARES S&P 500 VALUE ETF IVE 5.0000 $156.6300 $783.15 Equities ISHARES TR CORE S&P500 ETF IVV 11.0000 $476.9900 $5,246.89 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 11.1700 $43.6500 $487.57 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 16.7050 $83.4700 $1,394.37 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 21.0000 $51.0600 $1,072.26 Equities VANGUARD GRO&INC ADMIRALSHRS#593 VGIAX 14.8750 $104.2900 $1,551.31 Equities VANGUARD REAL ESTATE ETF VNQ 7.0000 $116.0100 $812.07 Equities VICTORY RS SM CAP GROW#279 RSEJX 16.8180 $79.3700 $1,334.84 Fixed Income ISHARES CORE US AGGREGATE BD ETF AGG 53.0000 $114.0800 $6,046.24 Fixed Income PIMCO HIGH YIELD,INSTL #108 PHIYX 118.3130 $9.0300 $1,068.37 Fixed Income PI MCO TOTAL RETURN INSTL #35 PTTRX 1,117.8380 $10.2700 $11,480.20 Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 791.3810 $14.4900 $11,467.11 Fixed Income VNGRD STTERM INVMT GRADE ADM #539 VFSUX 156.5600 $10.7700 $1,686.15 SUBTOTALS Cash&Cash Equivalents $504.10 Equities $15,998.31 Fixed Income $31,748.07 TOTALS $48,250.48 JHIGHMARK PARS: Central Contra Costa Sanitary District 18 CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT December 31, 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) 11.02 25 28.66 24 28.66 24 26.03 24 18.44 18 16.50 11 iShares S&P 500 Value ETF (4/17) 8.28 53 24.67 69 24.67 69 18.46 40 11.72 47 13.10 31 Vanguard Growth&Income Adm (12/16) 11.43 18 29.11 18 29.11 18 25.54 36 17.92 34 16.55 9 iShares S&P 500 Growth ETF (4/17) 13.32 4 31.76 4 31.76 4 31.95 28 23.88 34 19.01 25 S&P 500 TR USD 11.03 28.71 28.71 26.07 18.47 16.55 EQUITYMID CAP iShares Russell Mid-Cap ETF (3/16) 6.40 72 22.38 69 22.38 69 23.08 20 14.92 18 14.73 15 Russell Mid Cap TR USD 6.44 22.58 22.58 23.29 15.10 14.91 EQUITYSMALL CAP Undiscovered Managers Behavioral Val R6 (9/16) 7.31 27 34.50 33 34.50 33 19.79 24 10.60 19 14.08 5 Russell 2000 Value TR USD 4.36 -- 28.27 -- 28.27 -- 17.99 9.07 12.03 -- Victory RS Small Cap Growth R6 (2/19) -0.55 73 -10.74 98 -10.74 98 19.55 90 16.42 62 15.00 54 Russell 2000 Growth TR USD 0.01 -- 2.83 -- 2.83 -- 21.17 14.53 -- 14.14 INTERNATIONAL -- • Dodge&Cox International Stock 2.40 48 11.03 58 11.03 58 11.65 25 7.19 34 7.58 15 Vanguard FTSE Developed Markets ETF (9/18) 2.99 50 11.49 34 11.49 29 14.50 34 10.18 30 8.53 26 MFS International Growth R6 4.94 22 9.65 46 9.65 46 17.37 77 14.35 40 10.09 43 MSCI EAFE NR USD 2.69 -- 11.26 11.26 -- 13.54 -- 9.55 8.03 Hartford Schroders Emerging Mkts Eq F -2.93 80 -4.93 78 -4.93 78 12.91 32 11.41 24 6.50 31 (MSCI EM NR USD -1.31 -- -2.54 -2.54 -- 10.94 -- 9.87 -- 5.49 EQUITYREIT Vanguard Real Estate ETF (4/17) 14.89 74 40.38 65 40.38 65 19.91 49 11.22 49 11.50 33 Wilshire REIT Index 17.14 -- 46.18 -- 46.18 -- 19.19 -- 10.92 -- 11.47 BOND FUNDS iShares Core US Aggregate Bond ETF (6/21) -0.09 28 -1.67 52 -1.67 52 4.71 55 3.51 51 2.83 59 PIMCO Total Return Instl 0.16 40 -0.61 50 -0.61 50 5.42 55 4.20 39 3.70 39 PGIM Total Return Bond R6 (5/16) 0.29 6 -1.16 68 -1.16 68 5.89 32 4.71 15 4.44 11 Vanguard Short-Term Investment-Grade Adm -0.69 75 -0.33 53 -0.33 53 3.55 25 2.74 21 2.52 17 Bloomberg US Agg Bond TR USD 0.01 -- -1.54 -- -1.54 -- 4.79 -- 3.57 -- 2.90 -- PIMCO High Yield Instl (12/20) 0.68 33 4.05 68 4.05 68 8.00 43 5.62 35 6.17 35 ICE BofA US High Yield Mstr II Index 0.66 -- 5.36 -- 5.36 -- 8.57 -- 6.10 -- 6.76 Data Source:Morningstar, SEI Investments Returns less than one year are not annualized. Past performance is not indicative of future returns. The information presented has been obtained from sources believed accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value. JHIGHMARK@ PARS: Central Contra Costa Sanitary District 19 CAPITAL MANAGEMENT