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Home My WebLink About06.a. Receive HighMark Other Post-Employment Benefits OPEB) and Pension Prefunding Sub-Trust Reports for the First Quarter of Calendar Year 2022 Page 1 of 26 Item 6.a. CENTRAL SAN May 24, 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 FIRST QUARTER OF CALENDAR YEAR 2022 Attached for review is a trust performance overview provided by Highmark, as well as OPEB and Pension Pre-funding sub-trust investment reports for the quarter ending March 31, 2022. 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 year-to- date losses of -5.32% and -5.68% 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 9.05% and 5.01% 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 $45,500 remained in the trust as of March 31, 2022. Strategic Plan re-In GOAL THREE: Fiscal Responsibility Strategy 1—Maintain financial stability and sustainability, Strategy 2—Ensure integrity and transparency in financial management May 24, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 142 of 172 Page 2 of 26 ATTACHMENTS: 1. Highmark Overview, First Quarter 2022 2. PARS Investment Report, First Quarter 2022 May 24, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 143 of 172 Page 3 of 26 Attachment 1 JHIGHMARKO CAPITAL MANAGEMENT April 18, 2022 Phil Leiber Director of Finance and Administration Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553-4392 RE: 1 Q Quarter 2022 OPEB/Pension Report Dear Mr. Leiber, Market Commentary Heading into 2022, investors pondered, but were as yet unconcerned, about the implications from mounting inflation pressure and the removal of historic monetary and fiscal policy accommodations that had acted as an economic lifeline during the pandemic. Amid the early stage of this monumental policy regime shift, market participants remained focused on its tangible benefits over its potential costs. The Fed's uber-accommodation combined with free-flowing fiscal stimulus had spurred strong domestic economic growth momentum (5.7 percent GDP growth in 20211) as unemployment rates returned to pre-pandemic levels just two years after hitting the highest levels since The Great Depression. By the end of the quarter, the unemployment rate had fallen to 3.6 percent', close to the historic low of 3.5% seen in February 2020. Most importantly for equity investors, the rapid economic recovery supported a monster comeback from prior depressed levels for corporate profits in 2021, surpassing even the rosiest of expectations at the beginning of last year. According to Factset, S&P 500 companies reported earnings growth of 48% in 2021. While nowhere near last year's feat, the analyst consensus projections are calling for a healthy 9% growth rate in 2022. The S&P 500 Index hit an all-time high on January 3rd with the expectation that the Fed (and other global central banks facing the same issue) could bring inflation in check through a gradual tightening cycle without choking off economic growth. However, the pollyannish "inflation is a manageable issue" narrative hit a snag as data and anecdotal evidence suggested pricing pressure was broadening out and becoming more entrenched. In turn, investors began to wake up to the reality that a more hawkish Fed policy stance would be required, bringing into serious question the ability for central banks to engineer a soft economic landing. To make matters worse, in addition to the unimaginable human tragedy, Russia's war with Ukraine further complicated the inflation battle, as energy prices surged following the invasion. In addition to the spike in energy prices, supply chain issues, already stressed by the pandemic, worsened as exports of key raw materials from both countries were disrupted. 1 Source: BEA z Source: U.S. Bureau of Labor Statistics May 24, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 144 of 172 Page 4 of 26 Under a weakening growth and rising inflation outlook, the S&P 500 Index fell into correction' territory for the first time in two years. A strong risk-on rally as the quarter ended led to a recovery of more than half of the drawdown leaving the index off just-4.6 percent (including dividends) for the first quarter. The pain was far from evenly distributed though. More interest rate sensitive large cap growth stocks suffered losses for the quarter of 9 percent, while large cap value indices lost a mere 0.7 percent. Bond markets would take the most direct hit from rising interest rates as demand for Treasuries from the Fed (also known as quantitative easing or"QE") was expected to transform quickly into a source of supply (quantitative tightening or"QT"). The yield on the bellwether 10-year Treasury Note began climbing last summer after bottoming at a 1.17 percent on August 3rd. After climbing to 1.51 percent by the end of 2021, the pace of yield increase found a new gear in 2022, adding 82 basis points to end the first quarter at 2.33% -territory not seen since May of 2019. Energy, Commodities and Russia's Role A perfect storm of headwinds, including a lack of investment, low excess capacity, and the first European land war since World War II, collided with fiscal stimulus spending, pandemic-related spikes in demand, and low interest rates to drive prices of oil and select metals to levels not seen in decades. Starving the Spigot Due to ten years of over-investment and negative free cash flow in the energy sector, returns of energy-related stocks suffered,' leading investors to sour on the sector. The resulting decline of capital available to oil-producing companies, combined with an unprecedented drop in demand due to pandemic shutdowns, had shifted producers' capital allocation strategies. While investors drained capital from the sector, the Organization of Petroleum Exporting Countries (OPEC) implemented supply cuts during the COVID era to support crude prices. As demand for energy began to slowly return, OPEC remained united and drove crude oil inventories below normalized levels even as spare global capacity approached decade-low levels. Oil prices began to respond to the improving supply and demand dynamics in late summer last year as the economic backdrop improved. Geopolitics has always played an ebb-and-flow role throughout history in energy and commodity markets. In the U.S., technological developments led to fracking becoming economically feasible and even lower cost than other extraction methods. After importing the vast majority of our crude oil needs for an extended period of time, this has allowed for greater energy self-sufficiency, a U.S. goal since the oil crisis of 1973 when long lines at gas stations plagued the nation. 3 An equity market correction is defined by a decline of greater than 10% 'While the S&P 500 index returned an annualized 14.8 percent for the 10 years ending first quarter 2022, the Energy Select Sector SPDR Fund,an energy stock ETF, returned 4.4 percent for the same period. Source: Bloomberg May 24, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 145 of 172 Page 5 of 26 Europe, on the other hand, has maturing oil and gas fields and imports much of their natural gas needs, with Russia supplying over 39 percent. 5 This reliance, and concerns over climate change, are at the forefront of Europe's attempts to shift away from fossil fuels as renewable energy sources become more economically feasible and policy measures encourage changes in energy consumption. Consequences of the Invasion The tragic Russian attack of Ukraine has broad. but as of now, unknowable consequences for the energy and commodities complex. While Russia represents only about 2 percent of global Gross Domestic Product (GDP),' it has a much larger share of food and energy production. Russia's economy is driven by commodity exports and the global economy relies on these products to operate. Both Russia and Ukraine export large quantities of energy (oil, natural gas, and coal), agriculture (wheat and corn), and commodities (aluminum, nickel, palladium, platinum). Many of these commodities are already in tight supply and the war will only exacerbate global shortages. Food-related commodities are of particular concern with Russia and Ukraine combined producing some 20 percent of global wheat and corn. Ukraine will soon harvest the winter wheat crop and begin planting the spring corn crop. But a lack of fuel and infrastructure destruction could cut planted acreage by half or more. Logistics, given significant structural damage, will be strained to get product to market and the world will rely to a greater extent on Brazil and the United States to offset wheat and corn shortfalls. Consumer pain from inflationary pressures in both food and energy will come down hardest on developing nations and those lower on the economic ladder. Because developing economies spend a greater portion of their income on food-based commodities, inflationary pressures from demand elsewhere will cause increasing costs and slowing global economic growth. Increasing food insecurity in many parts of the world is a growing concern. Further, the agricultural industry is energy-dependent with a key ingredient, nitrogen- based fertilizer, requiring both minerals and natural gas. Higher energy costs are already impacting farmer costs which in turn increase the cost of all agricultural products. Sanctions Bite Deeply As sanctions target the Russian regime, its oligarchs, and Putin's inner circle the measures taken by key demand centers including the U.S., Europe, China, and India will dictate how much of Russia's products are exported, and thus the price of each commodity. While the current trajectory of the war looks to be drawn out, its direction and duration will be a factor in how global supply and demand shape up and dictate global pricing. Russian crude is trading at a significant discount of around $28 versus the price of Brent crude and, even at a significant discount, is finding a limited set of buyers. Russian oil exports and products, amounting to about 7.2 million barrels per day, will see 'Source: European Commission, Eurostat Energy Statistics 'Source:World Bank as of 2020 May 24, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 146 of 172 Page 6 of 26 a reshuffling of trade routes to those willing to accept product--often requiring payment in Russian Rubles. The current tight supply situation, exacerbated by less Russian oil on the market, will likely need to see demand destruction to balance supply and demand. In terms of supply, the most likely response is from U.S. shale producers. But pressure on management teams to return capital rather than grow production will hold back a return to extraction efforts. In tandem, labor constraints, oil field service costs and logistics will drive inflationary concerns and uncertainty of returns on investment. Global governments, already shifting energy policies to accommodate climate goals, are now addressing energy security concerns as well. The chaotic nature of the process suggests further volatility in markets. In the short-term, U.S. shale producers will be relative winners given quicker time to market, low-cost positions, and shorter time periods from investment to payback. In a protracted Russia/Ukraine crisis, commodity flows may continue to be disrupted by the war and increasing sanctions. Even with a diplomatic solution, Europe will focus on lowering its reliance on Russian natural gas through three avenues--supply diversification, demand destruction, and increased storage capacity. Increasing natural gas imports from other providers including Qatar, the U.S, and West Africa is ambitious and will take time to fully execute. Europe might also reembrace nuclear generation while adopting a favorable view of natural gas as an energy transition fuel on the way to renewables. This in turn could lead to signing long-term liquified natural gas contracts with global suppliers. Economic sanctions, including Russian banks' removal from SWIFT and the freezing of Russian central bank offshore reserves, are severely limiting Russia's financial and economic transactions, hampering exports. This economic war, previously unused even in WW II, aims to drive Russia into a severe recession with the goal of causing sufficient economic pain to force a diplomatic solution, regime change, or other outcome. Prices for many energy, metal-based commodities, and agricultural products are well above incentive-based levels for reinvestment, with many at decade highs. As the old saying goes, the cure to high commodity prices is high commodity prices. We continue to expect volatility. Looking Forward We expect financial market volatility to continue throughout the year as policy tailwinds transform into headwinds. If history is any guide, there is a chance the Fed will hike rates and shrink its balance sheet, until something breaks: either inflation, the economy, or the stock market. While investors hope for a soft landing scenario, the Fed is walking a very narrow path. In other words, the hill of worry investors must climb has gotten steeper but remains climbable in our view. Investors should take comfort in the fact that corporate 7 SWIFT,the Society for Worldwide Interbank Financial Telecommunications, is messaging system that allows large financial institutions worldwide to transfer money to each other. May 24, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 147 of 172 Page 7 of 26 and consumer fundamentals are embarking on this journey of policy normalization from a very strong position. Plan Performance The Central Contra Costa Sanitary District OPEB Plan declined -5.32% gross of investment fees for the first quarter, which trailed the Plan's benchmark target of-4.97%. Weakness was distributed evenly with the Plan's equities declining -4.8% and fixed income returns declining -5.61%. In the fixed income market, the decline in the Bloomberg US Aggregate Bond Index of -5.93%, was the largest quarterly loss in more than 40 years. The Bloomberg U.S. Treasury Index posted a -5.6% loss for the quarter, the highest of any quarter dating back to its 1973 inception. Investment grade corporate bonds posted a -7.7% return and underperformed similar duration Treasuries by -145 basis points. This was the worst quarterly total return performance for investment grade corporate bonds since the financial crisis. The investment grade corporate bond index credit spreads widened 23 basis points during the quarter to +116 basis points and are 36 bps above their post financial crisis credit spread low of 80 achieved only 9 months earlier. Despite the widening of credit spreads during the quarter, they did rebound from a level wide of 145 basis points reached in mid-March. The Plan's fixed income returns performed slightly better than the benchmark with a return of-5.61% vs. the benchmark return of-5.93%. Investment returns were somewhat supported by the short duration tilt from the Vanguard Short-Term Investment Grade Fund which declined 'only' -3.8%. The equities in the Plan declined -4.8%. All equity segments were in the red for the quarter The S&P500 declined -4.6%. Value outperformed growth, as the Russell 1000 Value Index returned -0.74% and the Russell 1000 Growth Index returned -9.04%. The small overweight tilt the Plan maintained to large cap value added a small benefit in the quarter. Within the S&P500 only three of the eleven GIC sectors posted positive gains in the quarter: energy (+38.7%), utilities (+4.3%), and materials (+0.17%). Communication services (-12.18%) and consumer discretionary stocks (-9.8%) were the leading declining areas in the first quarter. The Plan's small cap equities declined -4.73°/x, which was `relatively' better than the benchmark Russell 2000 Index which registered a -7.53% return. The Plan's Small Cap Value manager, the Undiscovered Managers Behavioral Value Fund was the Ione highlight of the quarter, gaining a positive +3.53%, which ranked in the 6th percentile of the Morningstar US Fund Small Value Universe. International markets were negatively impacted by both elevated inflationary readings and of course the conflict between Russia and Ukraine. Russia's invasion, and the corresponding increase in energy prices, will more than likely lead Europe into a recession. Companies in the Eurozone underperformed other regions given the areas dependence on Russian energy. The MSCI-EAFE Index declined -5.91% in the quarter. Relative to our international equity manager's respective peer universes, it was a positive quarter. The Dodge & Cox International Stock fund (-0.59%) ranked in the 3211 percentile of the Morningstar US Fund Foreign Large Value Universe. The Vanguard FTSE Developed Market ETF (-6.04%) performed in the 32nd percentile of the US Fund May 24, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 148 of 172 Page 8 of 26 Foreign Large Blend Category. And finally, the MFS International Growth Fund (-8.13%) ranked in the 11th percentile of the Morningstar US Fund Foreign Large Growth category. The MSCI-Emerging Market Index was off-6.97% in the quarter. Within this emerging market index, Russia's weight/allocation in the benchmark was almost 4% (6th largest country exposure) to begin the quarter. The Plan's emerging market manager is the Schroders Emerging Market Fund (-8.76%). On February 24, 2022 the managers maintained approximately a 3% exposure to Russia. After February 24, the fund moved to a 0% allocation. However, it is unclear whether it is a 0% allocation because Schroders, like the rest of the market, has written the value of their holdings down to 0%, or if they sold out of their holdings post invasion. The Fund company could not confirm with us when we asked the breakdown between reductions by performance or via sales. We began the quarter with a target asset allocation of 53% stocks, 46% bonds and 1% cash for the OPEB Plan. In response to elevated inflationary readings, a potentially more `hawkish' Federal Reserve, a potential slowdown in economic growth both domestically and internationally due to elevated inflation, and the possibility of escalating geopolitical risks in Europe, we reduced our equity allocation in the quarter by-4.5 percentage points. We ended the quarter with a target asset allocation position of 48.5% equities, 48.5% fixed income, and 3% cash/money market As mentioned in our previous quarterly report, in the first week in January, we exited the Victory RS Small Cap Growth Fund, and replaced this investment with the Vanguard Small Cap Growth ETF The Central Contra Costa Sanitary District Pension Plan declined -5.68% in the quarter, gross of investment fees, which lagged the District's Plan benchmark target of-4.95%. Andrew Brown May 24, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 149 of 172 Attachment 2 PARS: Central Contra Costa Sanitary District OPEB and Pension Plan First Quarter 2022 Presented by Andrew Brown, CFA JHIGHMARKO CAPITAL MANAGEMENT Investment Summary Since Inception_ CCC.7D — OPEB Beginning Value 566,683.26 Asset Allocation Contributions 107,808,845.31 Withdrawals -65,170,820.38 Total Assets: $83,240,615 Gain (Loss) 20,019,478.50 Interest and Dividends 20,016,428.33 Period Ending: 3-31-2022 Net Accrued Income 127,306.78 1Q22 Return: -5.32% Ending Market Value $83,367,921.80- 1 Year Return: 2.19% Inception-to-Date Return: 9.05% Cash Inception Date:4-1-2009 $2,598,114 3.12% Plan target rate of return: 5.75% Equity $40,358,171 48.48/0 Fixed Income $40,284,330 48.40% * Ending Market Value differs from total market value on page 3 due to differences in reporting methodology. The above ending market value includes accruals. JHIGHMARK PARS: Central Contra Costa Sanitary District 2 CAPITAL MANAGEMENT Asset Allocation - Central Contra Costa Sanitary District OPEB As of First Quarter 2022 Current Asset Allocation Investment Vehicle Equity 48.48% Range:40%-60% 40,358,171 Large Cap Core 9.23% IVV iShares Core S&P 500 ETF 7,679,157 6.96% VGIAX Vanguard Growth & Income Adm 5,791,460 Large Cap Value 5.47% IVE iShares S&P 500 Value ETF 4,550,917 Large Cap Growth 4.75% IVW iShares S&P 500 Growth ETF 3,957,706 Mid Cap Core 5.05% IWR iShares Russell Mid-Cap ETF 4,201,518 Small Cap Value 3.72% UBVFX Undiscovered Managers Behavioral Val R6 3,095,204 Small Cap Growth 3.79% VBK Vanguard Small-Cap Growth ETF 3,154,229 International Core 2.75% VEA Vanguard FTSE Developed Markets ETF 2,286,372 International Value 0.99% DODFX Dodge & Cox International Stock 824,873 International Growth 1.00% MGRDX MFS International Growth R6 835,643 Emerging Markets 2.75% HHHFX Hartford Schroders Emerging Mkts Eq F 2,287,703 Real Estate 2.03% VNQ Vanguard Real Estate ETF 1,693,390 Fixed Income 48.40% Range:40%-60% 40,284,330 27.72% Core Fixed Income Portfolio 23,077,786 Short-Term 3.98% VFSUX Vanguard Short-Term Investment-Grade Adm 3,311,463 Intermediate-Term 7.83% PTTRX PIMCO Total Return Instl 6,513,911 7.86% PTRQX PGIM Total Return Bond R6 6,540,360 High Yield 1.01% PHIYX PIMCO High Yield Instl 840,811 Cash 3.12% Range: 0%-20% 2,598,114 3.12% FGZXX First American Government Oblig Z 2,598,114 TOTAL 100.00% $83,240,615 JHIGHMARK PARS: Central Contra Costa Sanitary District 3 CAPITAL MANAGEMENT Selected Period Performance CCCSD - OPEB Period Ending: 3/31/2022 Year Inception to Date to Date (3 Months) 1 Year 3 Years 5 Years 10 Years 04/01/2009 Cash Equivalents .01 .03 .63 .96 .52 .45 Lipper Money Market Funds Index .01 .01 .61 .91 .48 .38 Fixed Income ex Funds -5.36 -3.29 2.18 Total Fixed Income -5.61 -3.41 2.15 2.51 2.59 3.90 Bloomberg US Aggregate Bd Index -5.93 -4.15 1.69 2.14 2.24 3.28 Total Equities -4.80 7.24 14.99 12.88 11.73 14.16 Large Cap Funds -4.18 15.68 18.53 15.46 14.16 15.70 S&P 500 Composite Index -4.60 15.65 18.92 15.99 14.64 16.61 Mid Cap Funds -5.72 6.74 14.70 12.26 11.18 Russell Midcap Index -5.68 6.92 14.89 12.62 12.85 16.42 Small Cap Funds -4.73 -4.10 12.46 11.50 12.57 16.40 Russell 2000 Index -7.53 -5.79 11.74 9.74 11.04 14.52 International Equities -6.22 -5.49 7.80 7.00 5.08 8.54 MSCI EAFE Index -5.91 1.16 7.78 6.72 6.27 8.68 MSCI EM Free Index -6.97 -11.37 4.94 5.98 3.36 8.01 RR: RE ITS -6.10 21.19 10.53 Wilshire REIT Index -3.87 29.14 11.94 10.04 9.90 17.10 Total Managed Portfolio -5.32 2.19 8.61 7.84 7.16 9.05 CCCSD OPEB Benchmark -4.97 2.43 8.55 7.62 7.18 9.02 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 HIGHIIIIARK® PARS: Central Contra Costa Sanitary District 4 CAPITAL MANAGEMENT Fixed Income Portfolio: Statistics As of First Quarter 2022 CCCSD BC Aggregate Bond OPEB Index Weighted Average Maturity 8.20 years 8.91 years Effective Duration 6.13 years 6.50 years Average Coupon 2.66% 2.44% Yield to Maturity 3.18% 2.91% Average Quality Aa3 Aa2 J HIGHMARK® PARS: Central Contra Costa Sanitary District 5 CAPITAL MANAGEMENT Source: BondEdge Fixed Income Portfolio: Sectors As of First Quarter 2022 40.0% 35.0% 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 0.7% 28.3% 0.0% 39.5% 1.2% 17.2% 0.0% 12.1% 1.0% ■Barclays U.S.Aggregate Bond Index 0.0% 39.1% 1.3% 24.5% 4.0% 28.7% 0.0% 0.3% 2.1% JHIGHMARK PARS: Central Contra Costa Sanitary District 6 CAPITAL MANAGEMENT Source: BondEdge Fixed Income Portfolio: Effective Duration and Effective Maturity As of First Quarter 2022 Effective Duration Effective Maturity 35% 30°/a 30% 25°/a 25% 20°/a 20% 15% 10°/a 10% 00/4 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 11.25% 20.07% 28.69% 7.61% 13.67% 18.72% ■CCCSD OPEB 7.96% 16.78% 23.37% 9.15% 20.39% 22.35% BC Aggregate Bond Index 0.16% 21.48% 28.43% 25.24% 7.20% 17.49% BC Aggregate Bond Index 0.11% 19.36% 16.53% 14.97% 30.31% 18.71% JHIGHMARK PARS: Central Contra Costa Sanitary District 7 CAPITAL MANAGEMENT Source: BondEdge Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:31-Mar-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 17,546.7600 $47.0100 $824,873.19 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 131,552.7740 $17.3900 $2,287,702.74 Equities ISHARES RUSSELL MIDCAP ETF IWR 53,838.0000 $78.0400 $4,201,517.52 Equities ISHARES S&P 500 GROWTH ETF IVW 51,816.0000 $76.3800 $3,957,706.08 Equities ISHARES S&P 500 VALUE ETF IVE 29,225.0000 $155.7200 $4,550,917.00 Equities ISHARES TR CORE S&P500 ETF IVV 16,926.0000 $453.6900 $7,679,156.94 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 20,838.9760 $40.1000 $835,642.94 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 35,815.8330 $86.4200 $3,095,204.29 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 47,603.0000 $48.0300 $2,286,372.09 Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 57,787.4700 $100.2200 $5,791,460.24 Equities VANGUARD REAL ESTATE ETF VNQ 15,626.0000 $108.3700 $1,693,389.62 Equities VANGUARD SMALL CAP GR VIPERS VBK 12,712.0000 $248.1300 $3,154,228.56 Fixed Income PIMCO HIGH YIELD,INSTL #108 PHIYX 98,802.6990 $8.5100 $840,810.97 Fixed Income PIMCO TOTAL RETURN INSTL #35 PTTRX 679,948.9260 $9.5800 $6,513,910.71 Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 486,272.0960 $13.4500 $6,540,359.69 Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 320,878.1520 $10.3200 $3,311,462.53 Fixed Income AMERICREDIT AUTO REC 3.580% 10/18/24 AAR3524A 30,979.4300 100.177% $31,034.26 Fixed Income DEVON ENERGYCORP NE 4.500% 1/15/30 DEC4530A 52,000.0000 103.194% $53,660.88 Fixed Income EXETER ATMOBILE REC 1.050% 5/15/26 EAR0026A 80,000.0000 96.814% $77,451.20 Fixed Income UNITED STATES TREA 0.00001% 10/31/25 UST0025C 215,000.0000 92.199% $198,227.85 Fixed Income UNITED STATES TREAS 0.000% 3/31/26 UST0026B 498,000.0000 93.254% $464,404.92 Fixed Income UNITED STATES TREAS 0.250% 6/15/24 UST0224B 228,000.0000 95.375% $217,455.00 Fixed Income UNITED STATES TREAS 0.375% 11/30/25 UST0025D 275,000.0000 92.453% $254,245.75 Fixed Income UNITED STATES TREAS 0.500% 2/28/26 UST0026A 129,000.0000 92.453% $119,264.37 Fixed Income UNITED STATES TREAS 0.500% 11/30/23 UST0523A 675,000.0000 97.199% $656,093.25 Fixed Income UN ITED STATES TREAS 0.0001% 5/31/26 UST0026D 110,000.0000 93.008% $102,308.80 Fixed Income ACACN 2015-1A NTS 3.600% 9/15/28 A21\13627 135,500.4000 96.013% $130,098.00 Fixed Income AERCAP IRELAND CAPIT 3.300% 1/30/32 AIC3332 200,000.0000 90.146% $180,292.00 Fixed Income ALASKA AIRLINES EQ 4.800% 2/15/29 AAE4829 114,714.2800 102.254% $117,299.94 Fixed Income AT&T INC GLBL NT 3.500% 6/01/41 AIG3541 260,000.0000 92.072% $239,387.20 JHIGHMARK PARS: Central Contra Costa Sanitary District 8 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:31-Mar-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income ATT 2013-1-2 2A 3.070% 3/15/48 A233048 235,000.0000 99.400% $233,590.00 Fixed Income BERKSHIRE HATHAWAY 3.850% 3/15/52 BH33852 120,000.0000 102.257% $122,708.40 Fixed Income BNP PARIBAS 2.591% 1/20/28 BP22528 200,000.0000 94.111% $188,222.00 Fixed Income BOEING CO CR SEN SR 2.196% 2/04/26 BCC2126 175,000.0000 94.542% $165,448.50 Fixed Income BRITISH AIRWAYS 2013 4.625% 12/20/25 BA24625 91,494.7800 100.481% $91,934.87 Fixed Income BROADSTONE NET LEASE 2.600% 9/15/31 BNL2631 130,000.0000 89.046% $115,759.80 Fixed Income BRUNSWICK CORP 2.400% 8/18/31 BC22431 130,000.0000 84.691% $110,098.30 Fixed Income CALIFORNIA HEALTH FA 4.353% 6/01/41 CHF4341 135,000.0000 101.452% $136,960.20 Fixed Income CAPITAL ONE CC TR 1.720% 8/15/24 C000024 250,000.0000 100.179% $250,447.50 Fixed Income CARVANA AUTO RECS TR 0.660% 6/12/28 CAR0628 260,000.0000 98.371% $255,764.60 Fixed Income CITIGROUP INC SR FLT 2/24/28 CIS0028 165,000.0000 100.301% $165,496.65 Fixed Income COCA COLA CO 4.125% 3/25/40 CCC4140 70,000.0000 105.946% $74,162.20 Fixed Income CREDIT ACCP AUTO LN 2.390% 4/15/29 CAA2329 250,000.0000 98.835% $247,087.50 Fixed Income CROWN CASTLE TOWERS 3.663% 5/15/45 CCT3645 175,000.0000 99.780% $174,615.00 Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 77,000.0000 113.249% $87,201.73 Fixed Income CYRUSONE LP/CYRUSONE 2.150% 11/01/30 CL22130 130,000.0000 99.846% $129,799.80 Fixed Income DARDEN RESTAURANTS 4.550% 2/15/48 DR44548 175,000.0000 96.020% $168,035.00 Fixed Income DNKN 2017-1A A211 4.030% 11/20/47 D2A4047 177,600.0000 100.282% $178,100.83 Fixed Income DRIVE AUTO REC TR 200.580% 12/15/25 DAR0025 195,000.0000 97.518% $190,160.10 Fixed Income ENERGY TRANSFER OPER 5.800% 6/15/38 ETO5838 125,000.0000 108.180% $135,225.00 Fixed Income EXETER AUTO RECV TR 0.690% 1/15/26 EAR0826 275,000.0000 97.570% $268,317.50 Fixed Income EXETER AUTO RECV TR 3.710% 3/17/25 EAR3725 170,000.0000 100.587% $170,997.90 Fixed Income F&G GLOBAL FUNDING 2.000% 9/20/28 FGF2028 130,000.0000 89.458% $116,295.40 Fixed Income FAIRFAX US INC 4.875% 8/13/24 FU14824 115,000.0000 102.493% $117,866.95 Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 70,524.8000 99.148% $69,923.93 Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 112,968.4200 99.482% $112,383.24 Fixed Income FGLMC#J30401 3.000% 1/01/30 J30401F 82,041.2000 101.111% $82,952.68 Fixed Income FGLMC#Q13204 3.000% 11/01/42 Q13204F 83,225.3100 99.369% $82,700.16 Fixed Income FHLMC G08823 3.500% 7/01/48 G08823F 65,703.9500 100.890% $66,288.72 Fixed Income FHLMC G14702 2.5000%3/1/2023 G14702F 14,694.2500 99.117% $14,564.50 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-Mar-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FHLMC G15252 3.000% 12/01/29 G15252F 68,062.4200 101.113% $68,819.95 Fixed Income FHLMC Q38373 3.500% 1/01/46 Q38373F 60,735.5900 101.944% $61,916.29 Fixed Income FHLMC RB5091 2.500%11/01/40 RB5091A 301,558.3000 96.674% $291,528.47 Fixed Income FHLMC SB0380 3.500% 2/01/34 SB0380A 89,584.8800 103.543% $92,758.87 Fixed Income FHLMC SB8006 3.000% 9/01/34 SB8006A 76,270.0000 101.039% $77,062.45 Fixed Income FHLMC V60586 3.0000%8/1/2029 V60586F 72,102.8500 101.112% $72,904.63 Fixed Income FIRST HORIZON CORPOR 4.000% 5/26/25 FHC4025 145,000.0000 101.318% $146,911.10 Fixed Income FNMA#MA3238 3.500% 11/01/47 MA3238A 43,596.5900 100.950% $44,010.76 Fixed Income FNMA A L8174 3.5000%2/1/2046 AL8174A 138,837.3900 101.849% $141,404.49 Fixed Income FNMA A L8924 3.0000% 12/1/2030 AL8924A 115,407.7500 100.804% $116,335.63 Fixed Income FNMA AL9376 3.0000%8/1/2031 AL9376A 66,465.8700 100.804% $67,000.26 Fixed Income FNMA AL9861 3.000% 8/01/30 AL9861A 156,108.3900 101.002% $157,672.60 Fixed Income FNMA AS4916 3.000% 5/01/30 AS4916A 105,116.0700 101.040% $106,209.28 Fixed Income FN MA AS7729 3.0000%8/1/2046 AS7729A 109,985.9000 99.416% $109,343.58 Fixed Income F N MA AT0293 3.0000%3/1/2043 AT0293A 80,943.6700 99.536% $80,568.09 Fixed Income FNMA BC 1486 3.0000%8/1/2046 BC1486A 103,833.4400 99.269% $103,074.42 Fixed Income FNMA BM4913 3.000% 5/01/46 BM4913A 60,028.6700 99.825% $59,923.62 Fixed Income FNMA CA 6348 2.500% 7/01/50 CA6348A 206,222.2000 95.684% $197,321.65 Fixed Income FNMA CA 6638 2.500% 8/01/50 CA6638A 249,397.9900 95.580% $238,374.60 Fixed Income FNMA CA 6801 2.500% 8/01/50 CA6801A 284,918.5700 95.587% $272,345.11 Fixed Income FNMA CA 7231 2.500% 10/01/50 CA7231A 248,311.1000 95.639% $237,482.25 Fixed Income FNMA FM3494 2.500% 4/01/48 FM3494A 111,640.0600 96.215% $107,414.48 Fixed Income FNMA MA2730 2.500% 8/01/46 MA2730A 238,505.8900 95.767% $228,409.94 Fixed Income FNMA MA27792.0000% 10/1/2026 MA2779A 44,618.8300 97.292% $43,410.55 Fixed Income FNMA MA2895 3.000% 2/01/47 MA2895A 65,390.5100 99.255% $64,903.35 Fixed Income FNMA MA3210 3.500% 11/01/47 MA3210A 40,806.3300 100.866% $41,159.71 Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 32,990.4800 102.644% $33,862.75 Fixed Income FNMA MA3332 3.500% 3/01/48 MA3332A 54,810.7000 100.760% $55,227.26 Fixed Income FNMA MA3489 3.500% 10/01/33 MA3489A 29,719.9500 102.618% $30,498.02 Fixed Income FNMA MA3536 4.000% 12/01/48 MA3536A 14,673.7100 102.118% $14,984.50 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-Mar-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FNMA MA4123 2.000% 9/01/35 MA4123A 188,819.5300 97.243% $183,613.78 Fixed Income FNMA LIMBS INT 2.000% 8/01/36 CB1446A 199,232.2700 97.280% $193,813.15 Fixed Income FORD CR AUTO OWN TR 1.870% 3/15/24 FCA0024 63,750.5800 100.091% $63,808.59 Fixed Income GATX CORP SR NT 3.500% 6/01/32 GCS3532 65,000.0000 96.423% $62,674.95 Fixed Income GM FINLAUTO LEASE 2.040% 12/20/23 GFA2023 235,000.0000 100.126% $235,296.10 Fixed Income GOLDMAN SACHS GROUP 3.615% 3/15/28 GSG3628 165,000.0000 99.860% $164,769.00 Fixed Income HASBRO INC 3.550% 11/19/26 H133526 100,000.0000 99.359% $99,359.00 Fixed Income HSBC HOLDINGS PLC 1.480% 3/10/26 HHP1426 200,000.0000 100.261% $200,522.00 Fixed Income JACKSON NATL LIFE GL 1.750% 1/12/25 JNL1725 150,000.0000 95.761% $143,641.50 Fixed Income LINCOLN NATIONAL COR 3.400% 3/01/32 LN C3432 120,000.0000 96.457% $115,748.40 Fixed Income LLOYDS BANKING F/R 2.907% 11/07/23 LBG2923 200,000.0000 100.140% $200,280.00 Fixed Income LOS ANGELES REV BDS 6.574% 7/01/45 LAR6545 100,000.0000 140.527% $140,527.00 Fixed Income MAGALLANES INC 5.141% 3/15/52 M155152 165,000.0000 102.310% $168,811.50 Fixed Income MANULIFE FINANCIAL 3.703% 3/16/32 MF33732 115,000.0000 100.905% $116,040.75 Fixed Income MOTOROLA SOLUTIONS 5.500% 9/01/44 MS55544 95,000.0000 109.959% $104,461.05 Fixed Income MVW 2020-1 1.740% 10/20/37 M211737 145,807.0200 96.538% $140,759.18 Fixed Income NGPL PIPECO LLC SR 3.250% 7/15/31 NPL3231 135,000.0000 93.364% $126,041.40 Fixed Income ONE GAS INC SR NT 1.100% 3/11/24 OG11124 175,000.0000 96.460% $168,805.00 Fixed Income ONEBEACON U S HLDG 4.600% 11/09/22 OUS4622 120,000.0000 101.094% $121,312.80 Fixed Income PACIFIC GAS&ELEC 3.150% 1/01/26 PGE3126 125,000.0000 96.286% $120,357.50 Fixed Income PENN MUTUAL LIFE INS 3.800% 4/29/61 PML3861 175,000.0000 88.829% $155,450.75 Fixed Income PHYSICIANS RLTY LP 3.950% 1/15/28 PRL3928 170,000.0000 100.807% $171,371.90 Fixed Income PRIMERICA INC SR NT 2.800% 11/19/31 PIS2831 70,000.0000 92.253% $64,577.10 Fixed Income PROGRESSIVE CORP SR 3.000% 3/15/32 PCS3032 120,000.0000 97.300% $116,760.00 Fixed Income SANTANDER RENG AT LN 2.800% 1/26/32 RA2832 230,000.0000 98.413% $226,349.90 Fixed Income SBA TOWER TRUST 1.631% 5/15/51 STT1651 140,000.0000 93.974% $131,563.60 Fixed Income SCHWAB CHARLES F/R 4.000% SCC0049 145,000.0000 95.750% $138,837.50 Fixed Income SPRINT SPECTRUM CO 4.738% 9/20/29 SSC4729 150,000.0000 102.100% $153,150.00 Fixed Income STANDARD CHARTERED 2.02201% 3/30/26 SC22026 200,000.0000 100.729% $201,458.00 Fixed Income TAOT 2019-C A3 MTGE 1.910% 9/15/23 T2A1923 63,920.4700 100.229% $64,066.85 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-Mar-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income TIME WARNER CABLE NT 7.300% 7/01/38 TWC7338 125,000.0000 121.408% $151,760.00 Fixed Income TRI-STATE GENERATION 6.000% 6/15/40 TG66040 115,000.0000 117.629% $135,273.35 Fixed Income TRUSTAGE FINANCIAL 4.625% 4/15/32 TF44622 115,000.0000 100.339% $115,389.85 Fixed Income UNITEDAIRI4-2A 3.750% 9/03/26 UA13726 95,304.3300 97.580% $92,997.97 Fixed Income UNITED STATES TREAS 0.750% 11/15/24 UST0724 300,000.0000 95.582% $286,746.00 Fixed Income UNITED STATES TREAS 0.875% 9/30/26 UST0826 400,000.0000 93.082% $372,328.00 Fixed Income UNITED STATES TREAS 1.000%12/15/24 UST1024 95,000.0000 96.102% $91,296.90 Fixed Income UNITED STATES TREAS 1.125% 10/31/26 UST1126 105,000.0000 94.063% $98,766.15 Fixed Income UNITED STATES TREAS 1.250% 11/30/26 UST1226 278,000.0000 94.613% $263,024.14 Fixed Income UNITED STATES TREAS 1.375%11/15/31 UST1331 173,000.0000 91.750% $158,727.50 Fixed Income UNITED STATES TREAS 1.625% 5/15/31 UST1631 1,174,000.0000 94.148% $1,105,297.52 Fixed Income UNITED STATES TREAS 1.625% 10/31/26 UST1626 150,000.0000 96.266% $144,399.00 Fixed Income UNITED STATES TREAS 1.750% 8/15/41 UST1741 39,000.0000 86.672% $33,802.08 Fixed Income UNITED STATES TREAS 1.875%11/15/51 UST1851 130,000.0000 87.719% $114,034.70 Fixed Income UNITED STATES TREAS 2.000% 8/15/51 UST2051 28,000.0000 90.219% $25,261.32 Fixed Income UNITED STATES TREAS 2.000% 11/15/41 UST0241 888,000.0000 90.484% $803,497.92 Fixed Income UNITED STATES TREAS 2.250% 5/15/41 UST2241 280,000.0000 94.402% $264,325.60 Fixed Income UNITED STATES TREAS 2.375% 2/15/42 UST2342 516,000.0000 96.453% $497,697.48 Fixed Income UNTD AIR 2013-1 4.300% 8/15/25 UA24325 157,008.4100 99.859% $156,787.03 Fixed Income VERIZON OWNER TR 1.940% 4/20/24 VOT0024 216,100.8100 100.129% $216,379.58 Fixed Income WESTLAKE AUTO RECV 4.000%10/16/23 WAR4023 40,230.6700 100.390% $40,387.57 Fixed Income WESTLAKE CHEM CORP 3.125% 8/15/51 WCC0051 105,000.0000 82.199% $86,308.95 Fixed Income ANHEUSER-BUSCH INBEV WLDW IN BUD/42 125,000.0000 110.402% $138,002.50 Fixed Income BLOCK FINL CORP BIDS 5.250% 10/01/25 HRB/25 80,000.0000 104.386% $83,508.80 Fixed Income COMMONWEALTH EDISON 5.875% 2/01/33 EXC/33 115,000.0000 117.862% $135,541.30 Fixed Income HESS CORP HES/33 175,000.0000 123.395% $215,941.25 Fixed Income ASSOCIATED BANC-CORP 4.250% 1/15/25 ASB25 115,000.0000 101.939% $117,229.85 Fixed Income PETRO-CDA NT 6.800% 5/15/38 SU/38 85,000.0000 128.809% $109,487.65 Fixed Income PLAINS ALLAMERN PIP 6.700% 5/15/36 PAA36 140,000.0000 110.348% $154,487.20 Fixed Income VERIZON COMMUNICATIO 4.400% 11/01/34 VZ34B 145,000.0000 106.393% $154,269.85 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-Mar-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income BANK OF AMERICA CORP 4.375% 150,000.0000 93.980% $140,970.00 Fixed Income BANK OF NOVA SCOTIA 90,000.0000 100.000% $90,000.00 Fixed Income BANK OF NY MELLON 3.750% 160,000.0000 92.440% $147,904.00 Fixed Income BOARDWALK PIPELINES 4.800% 5/03/29 125,000.0000 103.419% $129,273.75 Fixed Income BRITISH AIRWAYS PLC 3.300% 6/15/34 102,158.3600 94.514% $96,553.95 Fixed Income DELTA AIR LINES 2.500% 12/10/29 103,735.4100 92.941% $96,412.42 Fixed Income ENTERGY ARKANSAS LLC 4.200% 4/01/49 120,000.0000 107.118% $128,541.60 Fixed Income FEDERAL EX CORP 1.875% 8/20/35 133,369.7200 91.059% $121,445.13 Fixed Income JPMORGAN CHASE&CO 3.650% 155,000.0000 93.500% $144,925.00 Fixed Income PNC FINLSVCS GROUP 3.400% 135,000.0000 90.050% $121,567.50 Fixed Income QORVO INC 4.375% 10/15/29 30,000.0000 100.034% $30,010.20 Fixed Income ROSS STORES INC 4.800% 4/15/30 125,000.0000 106.707% $133,383.75 Fixed Income SPIRITAIRLINES 2017-1 86,046.1000 90.340% $77,733.79 Fixed Income TRUIST FINL CORP F/R 5.125% 115,000.0000 96.875% $111,406.25 Fixed Income UNITED STATES TREAS 1.875% 2/15/51 370,000.0000 87.379% $323,302.30 Cash&Cash Equivalents CASH (172,586.7100) $1.0000 ($172,586.71) Cash&Cash Equivalents FIRSTAMERN GOVTOBLIG FID CLZ#3676 FGZXX 2,770,700.6900 $1.0000 $2,770,700.69 SUBTOTALS Cash&Cash Equivalents $2,598,113.98 Equities $40,358,171.21 Fixed Income $40,284,329.84 TOTALS $83,240,615.03 JHIGHMARK PARS: Central Contra Costa Sanitary District 13 CAPITAL MANAGEMENT Investment Summary Since Inception_ CCC.7D — Pension Beginning Value 3,359,081.81 Asset Allocation Contributions 7,245,356.09 Withdrawals -12,944,391.28 Total Assets: $45,480 Gain (Loss) 1,452,043.82 Interest and Dividends 933,389.08 Period Ending: 3-31-2022 Net Accrued Income 52.87 1 Q22 Return: -5.68% Ending Market Value $45,532.39* 1 Year Return: -0.72% Inception-to-Date Return: 5.01 % Inception Date:9-1-2017 Plan target rate of return: 5.14% Cash Equity g $2,090 $12,563 4.60°j 27.62% Fixed Income $30,827 67.787, * 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 14 CAPITAL MANAGEMENT Asset Allocation - Central Contra Costa Sanitary District Pension As of First Quarter 2022 Current Asset Allocation Investment Vehicle Equity 27.62% Range: 20%-40% 12,563 Large Cap Core 7.98% IVV iShares Core S&P 500 ETF 3,630 2.96% VGIAX Vanguard Growth & Income Adm 1,348 Large Cap Value 2.05% IVE iShares S&P 500 Value ETF 934 0.99% DODFX Dodge & Cox International Stock 448 Large Cap Growth 1.01% IVW iShares S&P 500 Growth ETF 458 Mid Cap Core 2.75% IWR iShares Russell Mid-Cap ETF 1,249 Small Cap Value 2.21% UBVFX Undiscovered Managers Behavioral Val R6 1,006 Small Cap Growth 2.18% VBK Vanguard Small-Cap Growth ETF 993 International Core 1.58% VEA Vanguard FTSE Developed Markets ETF 720 International Growth 0.98% MGRDX MFS International Growth R6 448 Emerging Markets 1.49% HHHFX Hartford Schroders Emerging Mkts Eq F 678 Real Estate 1.43% VNQ Vanguard Real Estate ETF 650 Fixed Income 67.78% Range: 50%-80% 30,827 Short-Term 5.99% VFSUX Vanguard Short-Term Investment-Grade Adm 2,723 12.48% AGG iShares Core US Aggregate Bond ETF 5,676 Intermediate-Term 24.10% PTTRX PIMCO Total Return Instl 10,960 24.20% PTRQX PGIM Total Return Bond R6 11,004 High Yield 1.02% PHIYX PIMCO High Yield Instl 464 Cash 4.60% Range: 0%-20% 2,090 4.60% FGZXX First American Government Oblig Z 2,090 TOTAL 100.00% $45,480 JHIGHMARK PARS: Central Contra Costa Sanitary District 15 CAPITAL MANAGEMENT Selected Period Performance PARS/CCCSD 115P - PENSION Account 6746055901 Period Ending: 3/31/2022 Year Inception to Date to Date (3 Months) 1 Year 3 Years 09/01/2017 Cash Equivalents .01 .02 .63 .98 Lipper Money Market Funds Index .01 .01 .61 Total Fixed Income -6.05 -4.44 1.77 1.88 Bloomberg US Aggregate Bd Index -5.93 -4.15 1.69 1.73 Total Equities -4.97 3.80 13.65 11.58 Large Cap Funds -4.47 11.92 17.21 14.87 S&P 500 Composite Index -4.60 15.65 18.92 16.19 Mid Cap Funds -5.39 4.03 13.71 12.14 Russell Midcap Index -5.68 6.92 14.89 13.02 Small Cap Funds -5.10 -7.29 10.90 10.43 Russell 2000 Index -7.53 -5.79 11.74 10.22 International Equities -6.02 -5.53 7.76 4.98 MSCI EAFE Index -5.91 1.16 7.78 5.32 MSCI EM Free Index -6.97 -11.37 4.94 3.31 RR: REITS -6.45 20.93 10.35 9.38 Wilshire REIT Index -3.87 29.14 11.94 10.40 Total Managed Portfolio -5.68 -.72 5.73 5.01 CCCSD Pension Benchmark -4.95 -.07 5.76 5.13 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 16 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055901- PARS/CCCSD 115P- PENSION As of:31-Mar-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Cash&Cash Equivalents CASH (52.7200) $1.0000 ($52.72) Cash&Cash Equivalents FIRST AMERN GOVT OBLIG I'D CLZ#3676 FGZXX 2,142.5800 $1.0000 $2,142.58 Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 9.5330 $47.0100 $448.15 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 38.9850 $17.3900 $677.95 Equities ISHARES RUSSELL MIDCAP ETF IWR 16.0000 $78.0400 $1,248.64 Equities ISHARES S&P 500 GROWTH ETF IVW 6.0000 $76.3800 $458.28 Equities ISHARES S&P 500 VALUE ETF IVE 6.0000 $155.7200 $934.32 Equities ISHARES TR CORE S&P500 ETF IVV 8.0000 $453.6900 $3,629.52 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 11.1700 $40.1000 $447.92 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 11.6460 $86.4200 $1,006.45 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 15.0000 $48.0300 $720.45 Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 13.4550 $100.2200 $1,348.46 Equities VANGUARD REAL ESTATE ETF VNQ 6.0000 $108.3700 $650.22 Equities VANGUARD SMALL CAP GR VIPERS VBK 4.0000 $248.1300 $992.52 Fixed Income ISHARES CORE US AGGREGATE BD ETF AGG 53.0000 $107.1000 $5,676.30 Fixed Income PIMCO HIGH YIELD,INSTL #108 PHIYX 54.4800 $8.5100 $463.62 Fixed Income PIMCO TOTAL RETURN INSTL #35 PTTRX 1,144.0230 $9.5800 $10,959.74 Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 818.1280 $13.4500 $11,003.82 Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 263.8850 $10.3200 $2,723.29 SUBTOTALS Cash&Cash Equivalents $2,089.86 Equities $12,562.88 Fixed Income $30,826.77 TOTALS $45,479.51 JHIGHMARK PARS: Central Contra Costa Sanitary District 17 CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT March 31 , 2022 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) -4.61 33 -4.61 33 15.61 17 18.89 19 15.95 16 14.59 10 iShares S&P 500 Value ETF (4/17) -0.21 49 -0.21 49 12.39 58 13.93 44 10.96 48 11.71 37 Vanguard Growth& Income Adm (12/16) -3.90 22 -3.90 22 16.04 13 18.83 21 15.78 21 14.65 8 iShares S&P 500 Growth ETF (4/17) -8.62 25 -8.62 25 17.94 3 22.25 17 19.70 24 16.59 15 S&P 500 TR USD -4.60 -- -4.60 -- 15.65 -- 18.92 -- 15.99 -- 14.64 EQUITY -- 0001111111111111111r� MID CAP iShares Russell Mid-Cap ETF (3/16) -5.72 65 -5.72 65 6.72 44 14.70 29 12.46 22 12.68 17 Russell Mid Cap TR USD -5.68 -- -5.68 -- 6.92 -- 14.89 -- 12.62 -- 12.85 EQUITY -- SMALL CAP Undiscovered Managers Behavioral Val R6 (9/16) 3.53 6 3.53 6 13.48 8 16.01 15 10.91 11 12.65 5 Russell 2000 Value TR USD -2.40 -- -2.40 -- 3.32 -- 12.73 -- 8.57 -- 10.54 -- Vanguard Small-Cap Growth ETF (1/22) -11.95 43 -11.95 43 -9.25 55 11.84 70 12.64 57 11.92 58 Russell 2000 Growth TR USD -12.63 -12.63 -- -14.33 -- 9.88 10.33 -- 11.21 INTERNATIONAL -- • Dodge&Cox International Stock -0.59 31 -0.59 31 2.99 41 8.01 22 5.17 36 6.24 15 Vanguard FTSE Developed Markets ETF (9/18) -6.04 32 -6.04 32 0.73 29 8.58 26 7.19 27 6.69 18 MFS International Growth R6 -8.13 11 -8.13 11 0.02 18 9.67 52 10.69 22 7.69 30 MSCI EAFE NR USD -5.91 -5.91 1.16 7.78 6.72 6.27 Hartford Schroders Emerging Mkts Eq F -8.76 57 -8.76 57 -16.23 72 5.92 37 6.85 22 4.18 28 (MSCI EM NR USD -6.97 -- -6.97 -- -11.37 -- 4.94 -- 5.98 -- 3.36 EQUITY -- REIT Vanguard Real Estate ETF (4/17) -5.97 64 -5.97 64 21.45 71 11.40 51 9.65 54 9.69 33 Wilshire REIT Index -3.87 -3.87 -- 29.14 -- 11.94 10.04 -- 9.90 BOND FUNDS iShares Core US Aggregate Bond ETF (6/21) -5.86 -5.86 -4.18 1.63 2.10 2.18 PIMCO Total Return Instl -6.19 65 -6.19 65 -4.02 50 2.18 49 2.50 44 2.73 48 PGIM Total Return Bond R6 (5/16) -6.51 85 -6.51 85 -3.29 23 2.20 49 2.94 21 3.50 11 Vanguard Short-Term Investment-Grade Adm -3.80 86 -3.80 86 -3.67 74 1.49 36 1.78 30 1.96 20 Bloomberg US Agg Bond TR USD -5.93 -- -5.93 -- -4.15 -- 1.69 -- 2.14 -- 2.24 -- PIMCO High Yield Instl (12/20) -4.70 77 -4.70 77 -0.91 68 3.77 57 4.12 41 5.14 35 ICE BofA US High Yield Mstr II Index -4.51 -4.51 -0.29 4.40 4.56 5.74 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 18 CAPITAL MANAGEMENT