Loading...
HomeMy WebLinkAbout05.a. Receive HighMark Other Post-Employment Benefits and Pension Prefunding Subtrust report for Second Quarter 2022 Page 1 of 55 Item 5.a. CENTRAL SAN August 23, 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 SECOND 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 June 30, 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 -14.73% and -13.10% 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 8.02% and 2.98% 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 $41,922 remained in the trust as of June 30, 2022. Consistent with the Board-approved FY 2021-22 budget plan, the excess of OPEB costs above and beyond the Fiscal Year (FY) 2021-22 actuarially determined contribution (ADC)was claimed from the OPEB trust following the close of FY 2021-22. With a total FY 2021-22 OPEB budget of approximately $4.57 million, this resulted in Central San claiming and receiving a reimbursement of approximately$0.49 million from the OPEB trust in July 2022. The same approach was contemplated in the budget for FY 2022-23. August 23, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 83 of 146 Page 2 of 55 Strategic Plan re-In GOAL FOUR: Governance and Fiscal Responsibility Strategy 3- Maintain financial stability and sustainability ATTACHMENTS: 1. Highmark Overview, 2nd Quarter 2022 2. PARS Investment Report, 2nd Quarter 2022 3. PARS 115 Trust Team Report dated August 23, 2022 August 23, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 84 of 146 Page 3 of 55 Attachment 1 JHIGHMARKD CAPITAL MANAGEMENT July 25, 2022 Phil Leiber Director of Finance and Administration Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553-4392 RE: 2Q Quarter 2022 OPEB/Pension Report Dear Mr. Leiber, Quarterly review Equity and bond markets were hammered in the second quarter as inflation soared and the Federal Reserve began a cycle of significant rate hikes. This put a couple of worrisome questions into the spotlight: Is the risk of a recession growing? How can investors prepare for upcoming volatility? 1) Paying the Piper The government's massive fiscal stimulus response to the COVID pandemic, some $5 trillion' over the 12-month period ending March 2021, along with the Fed's aggressive series of rate cuts in the first quarter of 2020, unleashed a stampede into risk assets, ranging from stocks to high yield bonds. Now, the economic pendulum is swinging back. Near-zero rates distorted the cost of capita12 and fiscal interventions prompted excess consumer demand. This combination of events has sparked today's soaring inflation3—creating a monetary"beast" that the Fed's recent and abrupt about-face hopes to tame. • We view the unwinding of fiscal injections and monetary stimulus as a corrective change from the "sugar high" of pandemic-era support which led to unsustainable consumer demand, corporate profits, and risk asset returns. Over the last two years, the Fed has acted as both referee and player but now resumes its traditional role as market referee. • The inflation genie released from its bottle shows few signs of being tamed. Supply chain disruptions, shipping challenges and labor shortages continue to fuel price hikes. • While there are signs U.S. consumers are tightening their wallets after a spending spree, the war in Ukraine as well as Chinese plant closures continue to boost commodity and consumer durable prices. 1 Source: Committee for a Responsible Budget. z The cost of capital is the return needed to justify a capital project's cost(both equity and debt)such as new equipment or a new plant. 3 In May,the Consumer Price Index for All Urban Consumers rose 1.0 percent,seasonally adjusted,and rose 8.6 percent over the last 12 months, not seasonally adjusted.Source: U.S. Bureau of Labor Statistics August 23, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 85 of 146 Page 4 of 55 Inflation and Recession Inflation and Recession 15,0 12.5 n 10.0 a r E t v 7.5 c Q V `2 12 5.0 2.5 0.0 1970 1975 1980 1905 1990 1995 2000 2005 2010 2015 2020 - . Recession �Consumer Price Index:All Items Excluding Food and Energy for the United States Source:Federal Reserve Bank of St.Louis 2) Recession Risk During Fed Chairman Powell's June meeting with the Senate Banking Committee, he reconfirmed the Fed's "strong commitment"to bring inflation down from 40-year highs. But the prospects for a soft landing—taming inflation without dragging the economy into recession—are becoming increasingly unlikely. According to Powell, such an economic outcome would be "very challenging" and a recession,' he stated, is "a possibility". • Can the global economy withstand a cycle of significant rate hikes?According to the World Bank, prospects for a soft landing are gloomy. Global Gross Domestic Product (GDP) growth, the Bank expects, will remain below 3 percent for the next two years. The risk of stagflation5 is "hammering growth,"wrote President David Malpass. "For many countries, recession will be hard to avoid.116 • More negative news came in the form of June's preliminary S&P Global Composite Purchasing Managers' Index reading of 51.2, down from 53.6 in May.7 This is the 4 A recession is defined as an extended period of negative gross domestic product, rising unemployment, falling retail sales, and contracting measures of income and manufacturing. 5 Stagflation is characterized by slow economic growth and relatively high unemployment—or economic stagnation—which is at the same time accompanied by rising prices(i.e., inflation).Stagflation can be alternatively defined as a period of inflation combined with a decline in the gross domestic product(GDP). 5 https://www.worldbank.org/en/news/press-release/2022/06/07/stagflation-risk-rises-amid-sharp- slowdown-in-growth-energy-markets.The Bank cut global GDP growth estimates from 5.7 percent in 2021 to a forecast of 2.9 percent in 2022. 7 Levels above 50.0 indicate expansion in the economy. August 23, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 86 of 146 Page 5 of 55 lowest level since January, when pandemic-related disruptions slowed growth, and the second-weakest reading since the height of the pandemic in mid-2020. • Consumer sentiment is also declining, falling below the recession of 2008/2009's low 8, putting additional pressure on the prospects for U.S. GDP growth due to an impending negative wealth effect.9 Looking Ahead We believe a mild, "garden variety" recession is rapidly becoming a base case scenario for the U.S. economy with the most significant impact focused on consumer credit's support of the auto and home sectors.10 One encouraging difference between today and the recession of 2008/2009 is that the U.S. banking system is less vulnerable to some of the forces, including bond derivatives and subprime loans, that led to banking stresses in the "Great Recession". Also, this time around, contagion from risk asset class bubbles is less likely: bitcoin and NFT troubles are unlikely to materially impact traditional equities and bonds. • Investors should prepare for a U.S. recession and a bear equity market. How long the pain will last is unclear, but the average recession since 1926 lasted 22 months and the average equity bear market lasted 15 months for a cumulative loss of 38 percent." • Investors should be leery of responding to market events on an emotional basis. While equity and bond bear markets can be wrenching, and there may be significant declines going forward, note that the average bull market since 1926 lasted nearly seven years and returned a cumulative 339 percent.12 By keeping their investment time horizon in mind and working with their financial advisor, investors can build resilient all-weather portfolios able to withstand whatever the future brings. $Source:The University of Michigan Index of Consumer Sentiment.The June 2022 reading was 50,and the 2008/2009 recession low was 55. 1 A negative wealth effect is defined as the tendency of consumers to reduce spending if the value of their assets,such as stocks and real estate, declines. 11 A definitive answer to those wondering if we are already in a recession will have to wait:confirming a recessionary environment is handled by the National Bureau of Economic Research (NBER)and confirmation typically takes several months after the recession's peak. "https://www.uidaho.edu/-/media/Uldaho-Responsive/Files/Extension/county/Latah/finance/history- of-bull-and-bear-markets.pdf?la=en&hash=3FE66B60665F69ABF4A8CAEF3383C805F868EDOF " Ibid August 23, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 87 of 146 Page 6 of 55 Performance and Positioning The Central Contra Costa Sanitary District OPEB Plan declined -9.94% gross of investment fees for the second quarter, which slightly trailed the Plan's benchmark target of -9.86°/x. While the stocks in the Plan declined sharply (-15.49%), fixed income offered no protection to the Plan, declining by -4.98%. The underweight the Plan maintained to equities provided only a slight benefit to returns in the quarter. After the first quarter return of-5.93%,the Bloomberg U.S. Aggregate Bond Index declined by roughly the same in the second quarter, -4.69%. Concerns that the Federal Reserve will aggressively hike interest rates in the face of worrisome inflationary readings caused a significant sell-off in the bond market. Corporate spreads widened, and a risk-off environment ensued which was manifested in the Plan's three intermediate-term fixed income managers underperformance versus the Bloomberg Aggregate U.S. Index in the quarter. The heavy exposure to corporate issuers detracted from performance from Pimco Total Return (-5.46%), and PGIM total Return Bond Fund (-6.71%). The separately managed fixed income portfolio performed in-line with the benchmark, but did decline -4.78%. The decline in the corporate bond market was most apparent in the high yield market with the Pimco High Yield Bond Fund declining by-9.69% in the quarter. Plan returns where somewhat cushioned by the short duration position maintained in the Vanguard Short-Term Investment Grade Bond fund, which declined by-1.86%. The equity segment in the Plan declined -15.49%. For the second quarter in a row, all equity segments were in the red. The S&P500 Index declined -16.1%. Value outperformed growth, or better put — lost less, as the Russell 1000 Value Index returned -12.21% and the Russell 1000 Growth Index declined -20.92%. Growth indices continue to be under pressure from the sell-off in technology related shares—which constitute a large portion within many growth related indices. The modest overweight position that the Plan maintained in the quarter to large cap value, added only a small cushion to performance. Small cap equities struggled in the quarter, with the Russell 2000 Index down -17.20%. Small cap stocks are usually more volatile in heightened environments of volatility. This works well in up markets, but in declining market periods, the opposite is true. The Plan small cap stocks `relatively' outperformed the small cap benchmark, declining by -15.95% versus the benchmark of -17.2% International markets continued to be negatively impacted by both elevated inflationary readings and the conflict between Russia and Ukraine. Similar to the Federal Reserve, global central banks adopted hawkish policies to fight inflation, but it remains to be seen if these efforts will be successful. More so, investors are concerned that policies to fight inflation will lead to either a slowdown in these foreign markets, or an outright recession. These fears are exacerbated in Europe which in addition to trying to address inflation concerns, is also coping with potential supply shortages in natural gas/oil from Russia. The Plan's international equity returns were -12.43%. This compares to the two Plan international equity benchmarks: MSCI-EAFE Index (-14.51%), and the MSCI-Emerging Market Index (-11.45%). Within emerging markets, China (+3.4% 2Q2022) was one of the few global markets that generated a positive return in the second quarter. China offered some positive economic data points in the quarter, but as long as the country maintains a `zero Covid' policy, while not adopting a vaccination regime that utilizes MRNA technology, there will be an overhang on the potential upside to Chinese equities. We began the quarter with a tactical underweight to global equities. This underweight was increased in the quarter. The primary concerns related to run-away inflation, a potentially August 23, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 88 of 146 Page 7 of 55 more `hawkish' Federal Reserve, and a slowdown in economic growth which could lead to a recession in the near-term, compelled us to lower our equity allocation. We ended the quarter with a target asset allocation position of 47.5% equities, 48.75% fixed income, and 3.75% cash/money market The Central Contra Costa Sanitary District Pension Pre-Funding Plan declined -7.87% in the quarter, gross of investment fees, which lagged the District's Plan benchmark target of -7.43%. The Pension Plan also maintained an underweight allocation to equities, and ended the quarter at a targeted allocation of 27% equities, 68.75% fixed income, and 4.25% cash/money market. Drew Brown August 23, 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 89 of 146 Attachment 2 PARS: Central Contra Costa Sanitary District OPEB and Pension Plan Second Quarter 2022 Presented by Andrew Brown, CFA JHIGHMARKO CAPITAL MANAGEMENT Investment Summary Since Inception, CCCSD - OPEB Beginning Value 566,683.26 Asset Allocation Contributions 108,121,375.38 Withdrawals -65,224,396.78 Total Assets: $75,173,644 Gain (Loss) 20,416,806.45 Interest and Dividends 20,016,428.33 Period Ending: 6-30-2022 Net Accrued Income 154,427.89 2Q22 Return: -9.94% Ending Market Value $75,333,422.49"'- 1 75,333,422.49*1 Year Return: -12.08% Inception-to-Date Return: 8.02% Cash Inception Date:4-1-2009 $2,787,505 Plan target rate of return: 5.75% 3.7101, Equity $35,644,447 47.4201, Fixed Income $36,741,691 48.88010 * Ending Market Value differs from total market value on page 3 due to differences in reporting methodology. The above ending market value includes accruals. JH IGHMARK® PARS: Central Contra Costa Sanitary District 2 CAPITAL MANAGEMENT August 23, 2022 RegulaF FIN NGF= Gemmittee-Meeting Agenda Paeket Page 91 of 146 Asset Allocation - Central Contra Costa Sanitary District OPEB As of Second Quarter 2022 Current Asset Allocation Investment Vehicle Equity 47.42% Range:40%-60% 35,644,447 Large Cap Core 9.22% IVV iShares Core S&P 500 ETF 6,927,450 7.00% VGIAX Vanguard Growth & Income Adm 5,258,845 Large Cap Value 5.51% IVE iShares S&P 500 Value ETF 4,142,632 Large Cap Growth 4.46% IVW iShares S&P 500 Growth ETF 3,350,873 Mid Cap Core 4.75% IWR iShares Russell Mid-Cap ETF 3,568,521 Small Cap Value 3.80% UBVFX Undiscovered Managers Behavioral Val R6 2,857,713 Small Cap Growth 3.53% VBK Vanguard Small-Cap Growth ETF 2,652,024 International Core 2.74% VEA Vanguard FTSE Developed Markets ETF 2,059,788 International Value 0.99% DODFX Dodge & Cox International Stock 746,615 International Growth 0.98% MGRDX MFS International Growth R6 733,324 Emerging Markets 2.45% HHHFX Hartford Schroders Emerging Mkts Eq F 1,839,613 Real Estate 2.00% VNQ Vanguard Real Estate ETF 1,507,051 Fixed Income 48.88% Range:40%-60% 36,741,691 28.17% Core Fixed Income Portfolio 21,175,800 Short-Term 5.02% VFSUX Vanguard Short-Term Investment-Grade Adm 3,770,040 Intermediate-Term 7.38% PTTRX PIMCO Total Return Instl 5,551,027 7.30% PTRQX PGIM Total Return Bond R6 5,485,514 High Yield 1.01% PHIYX PIMCO High Yield Instl 759,311 Cash 3.71% Range: 0%-20% 2,787,505 3.71% FGZXX First American Government Oblig Z 2,787,505 TOTAL 100.00% $75,173,644 JHIGHMARK PARS: Central Contra Costa Sanitary District 3 CAPITAL MANAGEMENT Selected Period Performance CCCSD - OPEB Period Ending: 6/30/2022 Year Inception to Date to Date 3 Months (6 Months) 1 Year 3 Years 5 Years 10 Years 04/01/2009 Cash Equivalents .14 .15 .16 .48 .95 .54 .45 Lipper Money Market Funds Index .13 .14 .14 .47 .91 .49 .38 Fixed Income ex Funds -4.78 -9.89 -9.78 -.51 Total Fixed Income -4.98 -10.30 -10.21 -.61 1.14 1.88 3.42 Bloomberg US Aggregate Bd Index -4.69 -10.35 -10.29 -.93 .88 1.54 2.85 Total Equities -15.49 -19.54 -15.09 7.36 8.28 10.42 12.44 Large Cap Funds -15.94 -19.45 -10.22 10.39 10.85 12.71 13.88 S&P 500 Composite Index -16.10 -19.96 -10.62 10.60 11.31 12.96 14.74 Mid Cap Funds -16.89 -21.65 -17.37 6.47 7.63 9.63 Russell Midcap Index -16.85 -21.57 -17.30 6.59 7.96 11.29 14.48 Small Cap Funds -15.95 -19.92 -22.42 4.59 6.88 11.09 14.55 Russell 2000 Index -17.20 -23.43 -25.20 4.21 5.17 9.35 12.61 International Equities -12.43 -17.88 -20.77 2.02 2.84 4.67 7.29 MSCI EAFE Index -14.51 -19.57 -17.77 1.07 2.20 5.40 7.24 MSCI EM Free Index -11.45 -17.63 -25.28 .57 2.18 3.06 6.86 RR: RE ITS -15.47 -20.62 -8.16 3.99 Wilshire REIT Index -18.48 -21.64 -6.70 4.01 5.26 7.28 14.96 Total Managed Portfolio -9.94 -14.73 -12.08 3.71 5.03 6.24 8.02 CCCSD OPEB Benchmark -9.86 -14.33 -11.48 3.77 4.93 6.19 8.00 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 Second Quarter 2022 CCCSD BC Aggregate Bond OPEB Index Weighted Average Maturity 9.17 years 8.92 years I Effective Duration 6.17 years 6.43 years Average Coupon 3.44% 2.69% I Yield to Maturity 4.29% 3.66% Average Quality Aa3 Aa2 JHIGHMARK PARS: Central Contra Costa Sanitary District 5 CAPITAL MANAGEMENT Source: BondEdge Meeting Agenda Paeket Page 94 of 146 Fixed Income Portfolio: Sectors As of Second Quarter 2022 45.0% 40.0% — 35.0% 30.0% 25.0% - 20.0% — 15.0% — 10.0% — 5.0% — 0.0% Cash Treasury Agency Corp Non-Corp MBS CM❑ ABS CMBS ■CCCS❑❑PEB 0.0% 18.5% 0.0% 34.7% 2.5% 29.3% 0.0% 13.9% 1.1% ■Barclays U.S.Aggregate Bond Index 0.0% 40.2% 1.3% 23.3% 4.0% 29.0% 0.0% 0.3% 2.0% JHIGHMARK PARS: Central Contra Costa Sanitary District 6 CAPITAL MANAGEMENT Source: BondEdge Fixed Income Portfolio: Effective Duration and Effective Maturity As of Second Quarter 2022 Effective Duration Effective Maturity 40% 30°/a 35% 25°fa 30% 20°fa 25% 15°1a 20% 15% 10°/a 10% 5��a 5°/0 0-1 Yrs. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 10+ 0% Yrs. Yrs. 0-1 Yr. 1-3 Yrs. 3-5 Yrs. 5-7 Yrs. 7-10 Yrs. 10+Yrs. ■CCCSD OP EB 15.65% 11.87% 24.46% 16.64% 12.20% 19.18% ■CCCSD OPEB 11.54% 10.68% 15.09% 8.23% 17.80% 36.68% BC Aggregate Bond Index 0.14% 22.09% 21.70% 28.33% 11.79% 15.93% BC Aggregate Bond Index 0.04% 20.40% 15.40% 13.62% 21.10% 29.44% 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:30-Jun-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 17,546.7600 $42.5500 $746,614.64 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 120,314.7810 $15.2900 $1,839,613.00 Equities ISHARES RUSSELL MIDCAP ETF IWR 55,189.0000 $64.6600 $3,568,520.74 Equities ISHARES S&P 500 GROWTH ETF IVW 55,524.0000 $60.3500 $3,350,873.40 Equities ISHARES S&P 500 VALUE ETF IVE 30,137.0000 $137.4600 $4,142,632.02 Equities ISHARES TR CORE S&P500 ETF IVV 18,271.0000 $379.1500 $6,927,449.65 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 20,838.9760 $35.1900 $733,323.57 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 37,175.9240 $76.8700 $2,857,713.28 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 50,485.0000 $40.8000 $2,059,788.00 Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 62,784.6770 $83.7600 $5,258,844.55 Equities VANGUARD REAL ESTATE ETF VNQ 16,541.0000 $91.1100 $1,507,050.51 Equities VANGUARD SMALL CAP GR VIPERS VBK 13,460.0000 $197.0300 $2,652,023.80 Fixed Income PIMCO HIGH YIELD,INSTL #108 PHIYX 100,040.9840 $7.5900 $759,311.07 Fixed Income PIMCO TOTAL RETURN INSTL #35 PTTRX 616,780.7450 $9.0000 $5,551,026.71 Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 440,957.7060 $12.4400 $5,485,513.86 Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 374,011.8550 $10.0800 $3,770,039.50 Fixed Income DEVON ENERGYCORP NE 4.500% 1/15/30 DEC4530A 52,000.0000 94.460% $49,119.20 Fixed Income EXETER ATMOBILE REC 1.050% 5/15/26 EAR0026A 80,000.0000 96.834% $77,467.20 Fixed Income GM FIN CONS ATMB TR 0.450% 7/16/25 GFC0025B 125,667.6100 98.299% $123,530.00 Fixed Income ACACN 2015-1A NTS 3.600% 9/15/28 A21\13627 135,500.4000 94.687% $128,301.26 Fixed Income AERCAP IRELAND CAPIT 3.300% 1/30/32 AIC3332 200,000.0000 80.049% $160,098.00 Fixed Income ALASKA AIRLINES EQ 4.800% 2/15/29 AAE4829 114,714.2800 98.668% $113,186.29 Fixed Income AMERICAN CAMPUS CMNT2.250% 1/15/29 ACC2229 75,000.0000 92.600% $69,450.00 Fixed Income AT&T INC GLBL NT 3.500% 6/01/41 AIG3541 260,000.0000 79.848% $207,604.80 Fixed Income ATT 2013-1-2 2A 3.070% 3/15/48 A233048 235,000.0000 99.570% $233,989.50 Fixed Income AVIS BUD RENTAL FDG 2.970% 3/20/24 ABR2924 175,000.0000 99.682% $174,443.50 Fixed Income BOEING CO CR SEN SR 2.196% 2/04/26 BCC2126 175,000.0000 90.137% $157,739.75 Fixed Income BRITISH AIRWAYS 2013 4.625% 12/20/25 BA24625 85,212.5100 98.554% $83,980.34 Fixed Income BROADSTONE NET LEASE 2.600% 9/15/31 BNL2631 130,000.0000 81.551% $106,016.30 Fixed Income BRUNSWICK CORP 2.400% 8/18/31 BC22431 130,000.0000 74.001% $96,201.30 JHIGHMARK PARS: Central Contra Costa Sanitary District 8 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:30-Jun-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income CALIFORNIA HEALTH FA 4.353% 6/01/41 CHF4341 135,000.0000 93.680% $126,468.00 Fixed Income CAPITAL ONE CC TR 1.720% 8/15/24 C000024 250,000.0000 100.005% $250,012.50 Fixed Income CAPITAL ONE PRIME TR 2.670% 6/16/25 COP2625 115,000.0000 98.919% $113,756.85 Fixed Income CARVANA AUTO RECS TR 0.660% 6/12/28 CAR0628 190,006.0600 98.008% $186,221.14 Fixed Income CITIGROUP INC SR FLT 1.330% 2/24/28 CIS0028 165,000.0000 95.923% $158,272.95 Fixed Income CREDIT ACCP AUTO LN 2.390% 4/15/29 CAA2329 250,000.0000 98.235% $245,587.50 Fixed Income CROWN CASTLE TOWERS 3.663% 5/15/45 CCT3645 175,000.0000 97.802% $171,153.50 Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 77,000.0000 95.725% $73,708.25 Fixed Income DALLAS FT WORTH TEX 4.507% 11/01/51 DFW4551 150,000.0000 97.196% $145,794.00 Fixed Income DARDEN RESTAURANTS 4.550% 2/15/48 DR44548 175,000.0000 81.949% $143,410.75 Fixed Income DICKS SPORTING GOODS 4.100% 1/15/52 DSG4152 105,000.0000 66.496% $69,820.80 Fixed Income DNKN 2017-1A A211 4.030% 11/20/47 D2A4047 177,137.5000 95.697% $169,515.27 Fixed Income DRIVE AUTO REC TR 200.580% 12/15/25 DAR0025 195,000.0000 97.735% $190,583.25 Fixed Income DRIVE AUTO REC TR 204.300% 4/15/26 DAR4326 197,557.3100 100.435% $198,416.68 Fixed Income ENERGY TRANSFER OPER 5.800% 6/15/38 ETO5838 125,000.0000 93.668% $117,085.00 Fixed Income EXETER AUTO RECV TR 0.690% 1/15/26 EAR0826 275,000.0000 97.814% $268,988.50 Fixed Income EXETER AUTO RECV TR 3.710% 3/17/25 EAR3725 147,175.5700 99.936% $147,081.38 Fixed Income F&G GLOBAL FUNDING 2.000% 9/20/28 FGF2028 130,000.0000 84.127% $109,365.10 Fixed Income FAIRFAX US INC 4.875% 8/13/24 FU14824 115,000.0000 99.735% $114,695.25 Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 63,723.8700 98.678% $62,881.44 Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 107,296.7400 95.176% $102,120.75 Fixed Income FGLMC#J30401 3.000% 1/01/30 J30401F 71,868.5500 99.578% $71,565.26 Fixed Income FGLMC#Q13204 3.000% 11/01/42 Q13204F 80,250.1900 94.828% $76,099.65 Fixed Income FHLMC#SD8230 4.500% 6/01/52 SD8230A 413,391.0100 100.501% $415,462.10 Fixed Income FHLMC G08823 3.500% 7/01/48 G08823F 59,673.1200 97.539% $58,204.56 Fixed Income FHLMC G14702 2.5000%3/1/2023 G14702F 8,964.6100 99.969% $8,961.83 Fixed Income FHLMC G15252 3.000% 12/01/29 G15252F 63,040.5600 99.762% $62,890.52 Fixed Income FHLMC Q38373 3.500% 1/01/46 Q38373F 57,236.9900 97.866% $56,015.55 Fixed Income FHLMC RB5091 2.500%11/01/40 RB5091A 290,545.0200 92.039% $267,414.73 Fixed Income FHLMC SB0380 3.500% 2/01/34 SB0380A 83,203.9100 100.111% $83,296.27 JHIGHMARK PARS: Central Contra Costa Sanitary District 9 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:30-Jun-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FHLMC SB8006 3.000% 9/01/34 SB8006A 69,893.5900 98.806% $69,059.06 Fixed Income FHLMC SD8221 3.500% 6/01/52 SD8221A 607,016.3700 96.289% $584,489.99 Fixed Income FHLMC SD8222 4.000% 6/01/52 SD8222A 492,809.6000 98.727% $486,536.13 Fixed Income FHLMC V60586 3.0000%8/1/2029 V60586F 66,794.3900 99.762% $66,635.42 Fixed Income FIRST HORIZON CORPOR 4.000% 5/26/25 FHC4025 145,000.0000 98.333% $142,582.85 Fixed Income FNMA#CB3630A 4.000% 5/01/52 CB3630A 653,747.8800 98.758% $645,628.33 Fixed Income FN MA#MA4626 4.000% 6/01/52 MA4626A 473,335.4600 98.727% $467,309.90 Fixed Income FNMA#MA3238 3.500% 11/01/47 MA3238A 40,824.9600 97.735% $39,900.27 Fixed Income F N MA A L8174 3.5000%2/1/2046 AL8174A 133,566.5300 97.789% $130,613.37 Fixed Income FNMA A L8924 3.0000% 12/1/2030 AL8924A 106,613.5800 99.429% $106,004.82 Fixed Income F N MA A L9376 3.0000%8/1/2031 AL9376A 61,470.6600 99.425% $61,117.20 Fixed Income FNMA AL9861 3.000% 8/01/30 AL9861A 144,601.0400 99.694% $144,158.56 Fixed Income FNMA AS4916 3.000% 5/01/30 AS4916A 96,457.1500 99.671% $96,139.81 Fixed Income FN MA AS7729 3.0000%8/1/2046 AS7729A 105,263.4600 94.796% $99,785.55 Fixed Income F N MA AT0293 3.0000%3/1/2043 AT0293A 75,647.7500 95.028% $71,886.54 Fixed Income FNMA BC 1486 3.0000%8/1/2046 BC1486A 98,051.9500 94.775% $92,928.74 Fixed Income FNMA BM4913 3.000% 5/01/46 BM4913A 57,454.4900 95.543% $54,893.74 Fixed Income FNMA CA 6348 2.500% 7/01/50 CA6348A 198,000.0100 90.239% $178,673.23 Fixed Income FNMA CA 6638 2.500% 8/01/50 CA6638A 235,716.8100 90.118% $212,423.27 Fixed Income FNMA CA 6801 2.500% 8/01/50 CA6801A 273,597.0400 90.129% $246,590.28 Fixed Income FNMA CA 7231 2.500% 10/01/50 CA7231A 241,077.4400 90.199% $217,449.44 Fixed Income FNMA FM3494 2.500% 4/01/48 FM3494A 106,384.9300 90.766% $96,561.35 Fixed Income FNMA MA2730 2.500% 8/01/46 MA2730A 230,756.2700 90.358% $208,506.75 Fixed Income FNMA MA27792.0000% 10/1/2026 MA2779A 40,084.5300 95.392% $38,237.43 Fixed Income F N MA MA2895 3.000% 2/01/47 MA2895A 62,473.9000 94.619% $59,112.18 Fixed Income FNMA MA3210 3.500% 11/01/47 MA3210A 38,351.1400 97.575% $37,421.12 Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 30,049.8100 100.111% $30,083.17 Fixed Income FNMA MA3332 3.500% 3/01/48 MA3332A 51,551.4600 97.980% $50,510.12 Fixed Income FNMA MA3489 3.500% 10/01/33 MA3489A 27,496.3900 100.111% $27,526.91 Fixed Income FNMA MA3536 4.000% 12/01/48 MA3536A 13,261.1600 99.904% $13,248.43 JHIGHMARK PARS: Central Contra Costa Sanitary District 10 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:30-Jun-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FNMA MA4123 2.000% 9/01/35 MA4123A 180,797.7400 93.449% $168,953.68 Fixed Income FNMA LIMBS INT 2.000% 8/01/36 CB1446A 194,234.4700 93.627% $181,855.91 Fixed Income FORD CR AUTO OWN TR 1.870% 3/15/24 FCA0024 42,111.1200 99.822% $42,036.16 Fixed Income GOLDMAN SACHS GROUP 1.948% 10/21/27 GSG1927 175,000.0000 88.505% $154,883.75 Fixed Income HARLEY-DAVIDSON MTR 2.450% 5/15/25 HM22425 110,000.0000 99.241% $109,165.10 Fixed Income HASBRO INC 3.550% 11/19/26 H133526 100,000.0000 95.575% $95,575.00 Fixed Income HSBC HOLDINGS PLC 1.480% 3/10/26 HHP1426 200,000.0000 98.965% $197,930.00 Fixed Income LLOYDS BANKING F/R 2.907% 11/07/23 LBG2923 200,000.0000 99.653% $199,306.00 Fixed Income LOS ANGELES REV BDS 6.574% 7/01/45 LAR6545 100,000.0000 127.447% $127,447.00 Fixed Income MAGALLANES INC 5.141% 3/15/52 M155152 165,000.0000 83.935% $138,492.75 Fixed Income MOTOROLA SOLUTIONS 5.600% 6/01/32 MS55632 145,000.0000 100.832% $146,206.40 Fixed Income MVW 2020-1 1.740% 10/20/37 M211737 130,112.3500 93.718% $121,938.69 Fixed Income ONE GAS INC SR NT 1.100% 3/11/24 OG11124 175,000.0000 95.259% $166,703.25 Fixed Income ONEBEACON U S HLDG 4.600%11/09/22 OUS4622 120,000.0000 100.400% $120,480.00 Fixed Income PACIFIC GAS&ELEC 3.150% 1/01/26 PGE3126 125,000.0000 91.535% $114,418.75 Fixed Income PENN MUTUAL LIFE INS 3.800% 4/29/61 PML3861 175,000.0000 72.025% $126,043.75 Fixed Income PHYSICIANS RLTY LP 3.950% 1/15/28 PRL3928 170,000.0000 95.282% $161,979.40 Fixed Income PRIMERICA INC SR NT 2.800% 11/19/31 PIS2831 70,000.0000 83.679% $58,575.30 Fixed Income SANTANDER RENG AT LN 2.800% 1/26/32 RA2832 230,000.0000 95.486% $219,617.80 Fixed Income SBA TOWER TRUST 1.631% 5/15/51 STT1651 140,000.0000 89.453% $125,234.20 Fixed Income SCHWAB CHARLES F/R 4.000% SCC0049 145,000.0000 84.766% $122,910.70 Fixed Income SOUTHERN CALIF EDISO4.700% 6/01/27 SCE0027 115,000.0000 100.180% $115,207.00 Fixed Income SPRINT SPECTRUM CO 4.738% 9/20/29 SSC4729 137,500.3100 100.017% $137,523.69 Fixed Income STANDARD CHARTERED 2.02201% 3/30/26 SC22026 200,000.0000 100.019% $200,038.00 Fixed Income TAOT 2019-C A3 MTGE 1.910% 9/15/23 T2A1923 34,599.3300 99.963% $34,586.53 Fixed Income TIME WARNER CABLE NT 7.300% 7/01/38 TWC7338 125,000.0000 104.416% $130,520.00 Fixed Income TRI-STATE GENERATION 6.000% 6/15/40 TG66040 115,000.0000 98.341% $113,092.15 Fixed Income UNITEDAIRI4-2A 3.750% 9/03/26 UA13726 95,304.3300 95.218% $90,746.88 Fixed Income UN ITED STATES TREAS 1.000%12/15/24 UST1024 95,000.0000 95.231% $90,469.45 Fixed Income UNITED STATES TREAS 1.750% 8/15/41 UST1741 39,000.0000 76.066% $29,665.74 JHIGHMARK PARS: Central Contra Costa Sanitary District 11 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:30-Jun-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income UNITED STATES TREAS 2.000% 8/15/51 UST2051 28,000.0000 77.285% $21,639.80 Fixed Income UNITED STATES TREAS 2.000% 11/15/41 UST0241 888,000.0000 79.422% $705,267.36 Fixed Income UNITED STATES TREAS 2.250% 2/15/52 UST2252 102,000.0000 82.297% $83,942.94 Fixed Income UNITED STATES TREAS 2.250% 5/15/41 UST2241 280,000.0000 83.445% $233,646.00 Fixed Income UNITED STATES TREAS 2.375% 2/15/42 UST2342 875,000.0000 84.797% $741,973.75 Fixed Income UNITED STATES TREAS 2.625% 5/31/27 UST2627 250,000.0000 98.109% $245,272.50 Fixed Income UNITED STATES TREAS 2.875% 5/15/32 UST2832 1,160,000.0000 98.875% $1,146,950.00 Fixed Income UNITED STATES TREAS 3.250% 5/15/42 UST3242 344,000.0000 97.594% $335,723.36 Fixed Income UN IV CALIF REGTS MED 4.132% 5/15/32 UCR4132 140,000.0000 99.010% $138,614.00 Fixed Income UNTD AIR 2013-1 4.300% 8/15/25 UA24325 157,008.4100 95.587% $150,079.63 Fixed Income VERIZON OWNER TR 1.940% 4/20/24 VOT0024 134,962.8200 99.882% $134,803.56 Fixed Income WESTLAKE AUTO RECV 4.000% 10/16/23 WAR4023 0.0100 100.000% $0.01 Fixed Income ANHEUSER-BUSCH INBEV WLDW IN BUD/42 125,000.0000 95.185% $118,981.25 Fixed Income BLOCK FINL CORP BIDS 5.250% 10/01/25 HRB/25 80,000.0000 101.686% $81,348.80 Fixed Income COMMONWEALTH EDISON 5.875% 2/01/33 EXC/33 115,000.0000 109.389% $125,797.35 Fixed Income HESS CORP HES/33 175,000.0000 111.300% $194,775.00 Fixed Income ASSOCIATED BANC-CORP 4.250% 1/15/25 ASB25 115,000.0000 99.690% $114,643.50 Fixed Income PLAINS ALLAMERN PIP 6.700% 5/15/36 PAA36 140,000.0000 99.385% $139,139.00 Fixed Income VERIZON COMMUNICATIO 4.400% 11/01/34 VZ34B 145,000.0000 95.821% $138,940.45 Fixed Income BANK OF AMERICA CORP 4.375% 150,000.0000 82.977% $124,465.50 Fixed Income BANK OF NOVA SCOTIA 90,000.0000 92.721% $83,448.90 Fixed Income BANK OF NY MELLON 3.750% 160,000.0000 81.633% $130,612.80 Fixed Income BOARDWALK PIPELINES 4.800% 5/03/29 125,000.0000 96.891% $121,113.75 Fixed Income BRITISH AIRWAYS PLC 3.300% 6/15/34 100,783.9500 89.078% $89,776.33 Fixed Income DELTA AIR LINES 2.500% 12/10/29 98,313.8800 86.258% $84,803.29 Fixed Income ENTERGY ARKANSAS LLC 4.200% 4/01/49 120,000.0000 92.128% $110,553.60 Fixed Income FEDERAL EX CORP 1.875% 8/20/35 133,369.7200 86.751% $115,699.57 Fixed Income JPMORGA N CHASE&CO 3.650% 155,000.0000 81.900% $126,945.00 Fixed Income PNC FINLSVCS GROUP 3.400% 135,000.0000 75.932% $102,508.20 Fixed Income ROSS STORES INC 4.800% 4/15/30 125,000.0000 98.839% $123,548.75 JHIGHMARK PARS: Central Contra Costa Sanitary District 12 CAPITAL MANAGEMENT Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:30-Jun-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income SPIRITAIRLINES 2017-1 86,046.1000 87.336% $75,149.22 Fixed Income TRUIST FINL CORP F/R 5.125% 115,000.0000 82.173% $94,498.95 Fixed Income UNITED STATES TREAS 1.875% 2/15/51 370,000.0000 75.012% $277,544.40 $21,175,800.28 Cash&Cash Equivalents CASH (39,335.8300) $1.0000 ($39,335.83) Cash&Cash Equivalents FIRSTAMERN GOVTOBLIG FID CLZ#3676 FGZXX 2,826,840.8200 $1.0000 $2,826,840.82 SUBTOTALS Cash&Cash Equivalents $2,787,504.99 Equities $35,644,447.16 Fixed Income $36,741,691.42 TOTALS $75,173,643.57 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 -12,944,420.43 Total Assets: $41 ,864 Gain (Loss) 1,448,223.91 Interest and Dividends 933,622.97 Period Ending: 6-30-2022 Net Accrued Income 57.78 2Q22 Return: -7.87% Ending Market Value $41,922.13* 1 Year Return: -10.82% Inception-to-Date Return: 2.98% Inception Date:9-1-2017 Cash Equity Plan target rate of return: 5.14% $1,778 $11,333 4.25°'/0 27.07/0 Fixed Income $28,753 68.68/0 * Ending Market Value differs from total market value on page 15 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 Second Quarter 2022 Current Asset Allocation Investment Vehicle Equity 27.07% Range: 20%-40% 11,333 Large Cap Core 4.53% IVV iShares Core S&P 500 ETF 1,896 4.23% VGIAX Vanguard Growth & Income Adm 1,771 Large Cap Value 3.28% IVE iShares S&P 500 Value ETF 1,375 0.97% DODFX Dodge & Cox International Stock 406 Large Cap Growth 2.45% IVW iShares S&P 500 Growth ETF 1,026 Mid Cap Core 2.47% IWR iShares Russell Mid-Cap ETF 1,035 Small Cap Value 2.27% UBVFX Undiscovered Managers Behavioral Val R6 951 Small Cap Growth 1.88% VBK Vanguard Small-Cap Growth ETF 788 International Core 1.46% VEA Vanguard FTSE Developed Markets ETF 612 International Growth 0.99% MGRDX MFS International Growth R6 417 Emerging Markets 1.22% HHHFX Hartford Schroders Emerging Mkts Eq F 510 Real Estate 1.31% VNQ Vanguard Real Estate ETF 547 Fixed Income 68.68% Range: 50%-80% 28,753 Short-Term 7.49% VFSUX Vanguard Short-Term Investment-Grade Adm 3,137 19.92% AGG iShares Core US Aggregate Bond ETF 8,338 Intermediate-Term 20.18% PTTRX PIMCO Total Return Instl 8,450 20.09% PTRQX PGIM Total Return Bond R6 8,410 High Yield 1.00% PHIYX PIMCO High Yield Instl 419 Ca sh 4.25% Range: 0%-20% 1,778 4.25% FGZXX First American Government Oblig Z 1,778 TOTAL 100.00% $41,864 JHIGHMARK PARS: Central Contra Costa Sanitary District 15 CAPITAL MANAGEMENT Meeting Agenda Paeket Page 104 of 146 Selected Period Performance PARS/CCCSD 115P - PENSION Account 6746055901 Period Ending: 6/30/2022 Year Inception to Date to Date 3 Months (6 Months) 1 Year 3 Years 09/01/2017 Cash Equivalents .14 .15 .15 .48 .95 Lipper Money Market Funds Index .13 .14 .14 .47 .91 Total Fixed Income -5.31 -11.05 -11.05 -1.07 .64 Bloomberg US Aggregate Bd Index -4.69 -10.35 -10.29 -.93 .63 Total Equities -15.26 -19.47 -15.46 6.22 7.21 Large Cap Funds -15.90 -19.66 -10.57 9.19 10.03 S&P 500 Composite Index -16.10 -19.96 -10.62 10.60 11.18 Mid Cap Funds -16.88 -21.36 -17.31 5.55 7.29 Russell Midcap Index -16.85 -21.57 -17.30 6.59 8.10 Small Cap Funds -15.62 -19.93 -21.86 3.28 6.07 Russell 2000 Index -17.20 -23.43 -25.20 4.21 5.47 International Equities -12.25 -17.53 -20.03 2.06 1.93 MSCI EAFE Index -14.51 -19.57 -17.77 1.07 1.69 MSCI EM Free Index -11.45 -17.63 -25.28 .57 .58 RR: RE ITS -15.40 -20.86 -8.44 3.85 5.17 Wilshire REIT Index -18.48 -21.64 -6.70 4.01 5.29 Total Managed Portfolio -7.87 -13.10 -10.82 1.80 2.98 CCCSD Pension Benchmark -7.43 -12.02 -10.29 2.07 3.19 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:30-Jun-2022 Asset Type Asset Name Ticker Market Value Price Shares/Units Cash&Cash Equivalents CASH ($56.11) $1.0000 (56.1100) Cash&Cash Equivalents FIRSTAMERN GOVT OBLIG FD CLZ#3676 FGZXX $1,834.47 $1.0000 1,834.4700 Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX $405.63 $42.5500 9.5330 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX $510.23 $15.2900 33.3700 Equities ISHARES RUSSELL MIDCAP ETF IWR $1,034.56 $64.6600 16.0000 Equities ISHARES S&P 500 GROWTH ETF IVW $1,025.95 $60.3500 17.0000 Equities ISHARES S&P 500 VALUE ETF IVE $1,374.60 $137.4600 10.0000 Equities ISHARES TR CORE S&P500 ETF IVV $1,895.75 $379.1500 5.0000 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX $416.51 $35.1900 11.8360 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX $951.19 $76.8700 12.3740 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA $612.00 $40.8000 15.0000 Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX $1,771.44 $83.7600 21.1490 Equities VANGUARD REAL ESTATE ETF VNQ $546.66 $91.1100 6.0000 Equities VANGUARD SMALL CAP GR VIPERS VBK $788.12 $197.0300 4.0000 Fixed Income ISHARES CORE US AGGREGATE BD ETF AGG $8,337.76 $101.6800 82.0000 Fixed Income PIMCO HIGH YIELD,INSTL #108 PHIYX $418.69 $7.5900 55.1640 Fixed Income PIMCO TOTAL RETURN INSTIL #35 PTTRX $8,449.60 $9.0000 938.8440 Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX $8,410.04 $12.4400 676.0480 Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX $3,137.27 $10.0800 311.2370 SUBTOTALS Cash&Cash Equivalents $1,778.36 Equities $11,332.64 Fixed Income $28,753.36 TOTALS $41,864.36 JHIGHMARK PARS: Central Contra Costa Sanitary District 17 CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT June 30, 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) -16.11 62 -19.97 50 -10.64 38 10.57 22 11.27 20 12.91 12 iShares S&P 500 Value ETF (4/17) -11.32 50 -11.51 48 -5.04 50 8.05 49 8.01 49 10.78 35 Vanguard Growth& Income Adm (12/16) -15.78 53 -19.06 39 -9.83 30 10.87 17 11.32 17 13.00 10 iShares S&P 500 Growth ETF (4/17) -20.84 53 -27.67 42 -16.55 23 11.44 21 13.26 19 14.14 16 S&P 500 TR USD -16.10 -19.96 -10.62 10.60 11.31 12.96 EQUITYA011111I.- MID CAP iShares Russell Mid-Cap ETF (3/16) -16.88 88 -21.63 82 -17.43 81 6.42 63 7.81 35 11.11 22 Russell Mid Cap TR USD -16.85 -21.57 -17.30 6.59 7.96 11.29 EQUITYSMALL CAP Undiscovered Managers Behavioral Val R6 (9/16) -11.05 16 -7.91 4 -3.11 3 10.76 15 8.19 10 11.83 4 Russell 2000 Value TR USD -15.28 -17.31 -16.28 6.18 4.89 9.05 Vanguard Small-Cap Growth ETF (1/22) -20.44 62 -29.94 54 -31.77 62 2.34 72 6.81 66 9.82 64 Russell 2000 Growth TR USD -19.25 -29.45 -33.43 1.40 4.80 9.30 • • Dodge&Cox International Stock 1 -9.49 18 -10.02 18 -10.93 33 3.52 16 2.14 25 6.11 5 Vanguard FTSE Developed Markets ETF (9/18) -14.08 69 -19.26 52 -18.11 46 2.12 31 2.70 32 5.85 19 MFS International Growth R6 -12.24 7 -19.38 7 -17.98 6 3.33 21 5.71 15 7.08 23 MSCI EAFE NR USD -14.51 -19.57 -17.77 1.07 2.20 5.40 Hartford Schroders Emerging Mkts Eq F -12.08 57 -19.78 56 -28.42 66 0.75 42 2.70 29 3.53 31 IMSCI EM NR USD -11.45 -- -17.63 -- -25.28 -- 0.57 -- 2.18 -- 3.06 EQUITY -- REIT Vanguard Real Estate ETF (4/17) -15.47 44 -20.52 64 -8.07 75 4.73 51 5.69 52 7.47 34 Wilshire REIT Index -18.48 -- -21.64 -- -6.70 -- 4.01 -- 5.26 -- 7.28 BOND FUNDS iShares Core US Aggregate Bond ETF (6/21) -4.67 29 -10.26 31 -10.29 27 -0.98 45 0.83 40 1.49 48 PIMCO Total Return Instl -5.46 36 -11.31 51 -11.11 46 -0.77 47 0.99 44 1.87 51 PGIM Total Return Bond R6 (5/16) -6.71 89 -12.78 91 -12.53 86 -1.34 78 1.08 36 2.56 14 Vanguard Short-Term Investment-Grade Adm -1.86 54 -5.58 74 -6.10 73 0.22 44 1.25 33 1.70 17 Bloomberg US Agg Bond TR USD -4.69 -- -10.35 -- -10.29 -- -0.93 -- 0.88 -- 1.54 -- PIMCO High Yield Instl (12/20) -9.69 46 -13.94 59 -12.68 56 -0.62 66 1.53 51 3.92 35 ICE BofA US High Yield Mstr II Index -9.97 -- -14.04 -- -12.66 -- -0.04 -- 1.95 -- 4.44 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 Attachment 3 - - 1 3 x it 1 SO y - '` H -111111 v `may � a �E CENTRAL CONTRA COSTA SANITARY DISTRICT PARS 115 Trust - s c suy u a i Prefunding Program and Pension Rate . • . • Program A • IL 2022 Regular FINANCE Committee Meeting Agenda Packet- Page 108 of 14 PARS 115 TRUST TEAM Trust Administrator & Consultant PU GE BLAY PARS • Serves as record-keeper, consultant, • Monitors plan compliance RETIREMENT SERVICES and central point of contact (IRS/GASB/State Government Code) TRUSTED SOLUTIONS.LASTING RESULTS. . Sub-trust accounting • Processes contributions/disbursements • Coordinates all agency services • Hands-on, dedicated support teams 38 2,000+ 1 ,000+ 490+ 500 K+ SUB Years of Experience Plans under Public Agency 115 Trust Clients Plan Participants Assets under (1984-2022) Administration Clients Administration Investment Manager CVbanks JHIGHMARK® CAPITAL MANAGEMENT • 5th largest commercial bank and one of the • Investment sub-advisor to trustee U.S. Bank nation's largest trustees for Section 115 trusts • Investment policy assistance • Safeguard plan assets • Uses open architecture • Oversight protection as plan fiduciary • Active and passive platform options • Custodian of assets • Customized portfolios(with minimum asset level) 159 $9.OT 103 S 19.0 B Years of Experience Assets under Trust Years of Experience Assets under (1863-2022) Custody (1919-2022) Management& Advisement PU AGENCY PARS RETIREMENT SERVICES TRUSTED SgkU6 S�AJ?"n.Regular FINANCE Committee Meeting Agenda Packet- Page 109 of 146 CENTRAL CONTRA COSTA SANITARY DISTRICT 2 PARS IRS-APPROVED SECTION 115 TRUST Prefund • ' GASB 75 0 GASB 68 I I I I General Fund prefund Retiree Medical Benefits either or both Pension Rate Stabilization Program Assets can be used to: Assets can be used to: provider�r Reimburse agency; or F_ Reimburse agency; or Pay benefits Subaccounts Financial Stability Flexible Investing OPEB and pension assets are Assets in the PARS Section 115 Allows separate investment individually sub-accounted, Combination Trust can be used strategies for OPEB and and can be divided by dept., to address unfunded liabilities. pension subaccounts. bargaining group, or cost center. OAnytime Access Economies-of-Scale No Set Up Cost or Minimums Trust funds are available OPEB and pension assets No set-up costs, no minimum anytime; OPEB for OPEB aggregate and reach lower fees annual contribution amounts, and pension for pension. on tiered schedule sooner - and no fees until assets are added. saving money! PUBLIC PARS AGENCY RETIREMENT SERVICES CENTRAL CONTRA COSTA SANITARY DISTRICT TRUSTED s94,4�'�" s�t"�I'�D R .Regular FINANCE Committee Meeting Agenda Packet- Page 110 of 146 TS3 SUMMARY OF AGENCY'S OPEB PLAN Plan Type: IRC Section 115 Irrevocable Exclusive Benefit Trust Trustee Approach: Discretionary Plan Effective Date: November 6, 2008 Plan Administrator: Finance Manager Current Investment Strategy: Moderate HighMark Plus (Active) Strategy; Individual Account AS O F J U N E 30, 2022: Initial Contribution: March 2009: $560,000 Additional Contributions: $44,698,700 Total Contributions: $45,258,700 Disbursements: $0 Total Investment Earnings: $31,986,272 Account Balance: $75,404,430 PUBLIC PARS AGENCY RETIREMENT SERVICES TRUSTED s94,4�'�" s�t"�I'�D R .Regular FINANCE Committee Meeting Agenda Packet- Page 111 of 146 CENTRAL CONTRA COSTA SANITARY DISTRICT 4 TS SUMMARY OF AGENCY'S OPEB PLAN HISTORY OF CONTRIBUTIONS, DISBURSEMENTS, AND TOTAL ASSETS AS OF JUNE 30, 2022: $90,000,000 �Contributions $80,000,000 Disbursements Jun-09* $2,240,000 $0 $2,341,251 Total Assets Jun-10 $6,720,000 $0 $9,305,799 $70,000,000 Jun-11 $6,565,000 $0 $18,077,303 $60,000,000 Jun-12 $4,131,600 $0 $22,718,524 Jun-13 $4,142,600 $0 $29,352,833 $50,000,000 Jun-14 $2,828,400 $0 $36,131,536 Jun-15 $2,810,000 $0 $39,917,736 $40,000,000 Jun-16 $2,631,600 $0 $42,703,154 $30,000,000 Jun-17 $5,028,700 $0 $52,328,367 Jun-18 $4,078,000 $0 $59,596,743 $20,000,000 Jun-19 $1,582,800 $0 $65,926,104 Jun-20 $1,250,000 $0 $69,849,380 $10,000,000 Jun-21 $0 $0 $84,607,283 $0 Jun-22 $1,250,000 $0 $75,404,430 Plan Year Ending BUcPARS *Plan Year Ending June 2009 is based on 4 months of activity. AGENCY REMEMEW SERVICES TRUSTED SgkU6V �Tj? n.Regular FINANCE Committee Meeting Agenda Packet- Page 112 of 146 CENTRAL CONTRA COSTA SANITARY DISTRICT 5 s't" OPEB ACTUARIAL RESULTS • We have received the actuarial report by Bartel Associates, LLC dated May 24, 2021 with a valuation date as of July 1 , 2020. In the table below, we have summarized the results. 1117 valuation Date Valuation Date Demographic Study July 1, i July 1 , 2020 Actives 274 271 Retirees 265 278 Total 539 549 PUBLIC PARS AGENCY RETIREMENT SERVICES CENTRAL CONTRA COSTA SANITARY DISTRICT 6 TRUSTED s94,4�'�" s�t"�I'�U RT .Regular FINANCE Committee Meeting Agenda Packet- Page 113 of 146 OPEB ACTUARIAL RESULTS Valuation Date Valuation Date July 1, 2018 July 1, 2020 DII DII Total OPEB Liability (TOL) $108,135,000 $84,861,000 Actuarial Accrued Liability(AAL) Fiduciary Net Position $59,356,000 $69,623,000* Actuarial Value of Assets Net OPEB Liability(NOL) Unfunded Actuarial Accrued Liability $48,779,000 $15,238,000 (UAAL) Funded Ratio (%) 54.9% 82.0% Service Cost $2,672,000 $2,011,000 for FY 2018-19 for FY 2020-21 Annual Benefit Payments $5,680,000 $4,642,000 (Pay-as-you-Go) for FY 2018-19 for FY 2020-21 *As of June 30, 2022, assets at $75,404,430 (approx. -88.9% funded). Rule of thumb: For every one percent increase in the discount rate, the unfunded liability is lowered by 10-12%. PUBLIC PARS AGENCY RETIREMENT SERVICES CENTRAL CONTRA COSTA SANITARY DISTRICT TRUSTED S9kyflU4t" jI nn.Regular FINANCE Committee Meeting Agenda Packet- Page 114 of 146 SUMMARY OF AGENCY'S PENSION PLAN Plan Type: IRC Section 115 Irrevocable Exclusive Benefit Trust Trustee Approach: Discretionary Plan Effective Date: July 20, 2017 Plan Administrator: Finance Manager Current Investment Strategy: Moderately Conservative HighMark Plus (Active) Strategy; Individual Account AS O F J U N E 30, 2022: Initial Contribution: August 2017: $3,359,000 Additional Contributions: $7,000,000 Total Contributions: $10,359,000 Disbursements: ($12,763,669) Total Investment Earnings: $2,388,327 Account Balance: $41,954 PUBLIC PARS AGENCY RETIREMENT SERVICES TRUSTED Sqkyj6USL Sfjc R TS.Regular FINANCE Committee Meeting Agenda Packet- Page 115 of 146 CENTRAL CONTRA COSTA SANITARY DISTRICT 18 SUMMARY OF AGENCY'S PENSION PLAN HISTORY OF CONTRIBUTIONS, DISBURSEMENTS, AND TOTAL ASSETS AS OF JUNE 30, 2022: $14,000,000 Contributions Contributions Total Assets Disbursements $12,000,000 Total Assets Jun-18* $5,359,000 $0 $5,397,153 $10,000,000 Jun-19 $2,500,000 $0 $8,420,816 $8,000,000 Jun-20 $1,250,000 $0 $10,322,954 $6,000,000 Jun-21 $1,250,000 $12,763,669 $47,121 $4,000,000 Jun-22 $0 $0 $41,954 $2,000,000 $0 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Plan Year Ending PUBLICPARS `Plan Year Ending June 2009 is based on 11 months of activity. AGENCC NC/ RETIREMENE SERVICES CENTRAL CONTRA COSTA SANITARY DISTRICT TRUSTED s94,4�'�" s�t"�I'�D R .Regular FINANCE Committee Meeting Agenda Packet- Page 116 of 146 TS9 PARS: Central Contra Costa Sanitary District OPEB and Pension Plan Second Quarter 2022 Presented by Andrew Brown, CFA JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 10 Economic and Market Forecast August 2022 2022 Assumptions GDP 0.3% - 1 .0% S&P 500 Earnings $215 - $225 Unemployment 3.7% - 4.2% Core PCE Inflation 3.8% - 4.3% Fed Funds Target 2.75% - 3.25% Source: HighMark Asset Allocation Committee HIGHMARK° CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 11 Investment Summary Since Inception, Ci CiCisD - OPEB Beginning Value 566,683.26 Asset Allocation Contributions 108,121,375.38 Withdrawals -65,224,396.78 Total Assets: $75,173,644 Gain (Loss) 20,416,806.45 Interest and Dividends 20,016,428.33 Period Ending: 6-30-2022 Net Accrued Income 154,427.89 2Q22 Return: -9.94% Ending Market Value $75,333,422.49"'- 1 75,333,422.49*1 Year Return: -12.08% Inception-to-Date Return: 8.02% Cash Inception Date:4-1-2009 $2,787,505 Plan target rate of return: 5.75% 3.7101, Equity $35,644,447 47.4201, Fixed Income $36,741,691 48.88010 * Ending Market Value differs from total market value on page 4 due to differences in reporting methodology. The above ending market value includes accruals. J HIGHMARK® CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 12 Asset Allocation - Central Contra Costa Sanitary District OPEB As of Second Quarter 2022 Current Asset Allocation Investment Vehicle Equity 47.42% Range:40%-60% 35,644,447 Large Cap Core 9.22% IVV iShares Core S&P 500 ETF 6,927,450 7.00% VGIAX Vanguard Growth & Income Adm 5,258,845 Large Cap Value 5.51% IVE iShares S&P 500 Value ETF 4,142,632 Large Cap Growth 4.46% IVW iShares S&P 500 Growth ETF 3,350,873 Mid Cap Core 4.75% IWR iShares Russell Mid-Cap ETF 3,568,521 Small Cap Value 3.80% UBVFX Undiscovered Managers Behavioral Val R6 2,857,713 Small Cap Growth 3.53% VBK Vanguard Small-Cap Growth ETF 2,652,024 International Core 2.74% VEA Vanguard FTSE Developed Markets ETF 2,059,788 International Value 0.99% DODFX Dodge & Cox International Stock 746,615 International Growth 0.98% MGRDX MFS International Growth R6 733,324 Emerging Markets 2.45% HHHFX Hartford Schroders Emerging Mkts Eq F 1,839,613 Real Estate 2.00% VNQ Vanguard Real Estate ETF 1,507,051 Fixed Income 48.88% Range:40%-60% 36,741,691 28.17% Core Fixed Income Portfolio 21,175,800 Short-Term 5.02% VFSUX Vanguard Short-Term Investment-Grade Adm 3,770,040 Intermediate-Term 7.38% PTTRX PIMCO Total Return Instl 5,551,027 7.30% PTRQX PGIM Total Return Bond R6 5,485,514 High Yield 1.01% PHIYX PIMCO High Yield Instl 759,311 Cash 3.71% Range: 0%-20% 2,787,505 3.71% FGZXX First American Government Oblig Z 2,787,505 TOTAL 100.00% $75,173,644 JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT , 13 Selected Period Performance CCCSD - OPEB Period Ending: 6/30/2022 Year Inception to Date to Date 3 Months (6 Months) 1 Year 3 Years 5 Years 10 Years 04/01/2009 Cash Equivalents .14 .15 .16 .48 .95 .54 .45 Lipper Money Market Funds Index .13 .14 .14 .47 .91 .49 .38 Fixed Income ex Funds -4.78 -9.89 -9.78 -.51 Total Fixed Income -4.98 -10.30 -10.21 -.61 1.14 1.88 3.42 Bloomberg US Aggregate Bd Index -4.69 -10.35 -.93 .88 1.54 2.85 Total Equities -15.49 -19.54 -15.09 7.36 8.28 10.42 12.44 Large Cap Funds -15.94 -19.45 -10.22 10.39 10.85 12.71 13.88 S&P 500 Composite Index -16.10 -19.96 -10.62 10.60 11.31 12.96 14.74 Mid Cap Funds -16.89 -21.65 -17.37 6.47 7.63 9.63 Russell Midcap Index -16.85 -21.57 -17.30 6.59 7.96 11.29 14.48 Small Cap Funds -15.95 -19.92 -22.42 4.59 6.88 11.09 14.55 Russell 2000 Index -17.20 -23.43 -25.20 4.21 5.17 9.35 12.61 International Equities -12.43 -17.88 -20.77 2.02 2.84 4.67 7.29 MSCI EAFE Index -14.51 -19.57 -17.77 1.07 2.20 5.40 7.24 MSCI EM Free Index -11.45 -17.63 -25.28 .57 2.18 3.06 6.86 RR: RE ITS -15.47 -20.62 -8.16 3.99 Wilshire REIT Index -18.48 -21.64 -6.70 4.01 5.26 7.28 14.96 Total Managed Portfolio -9.94 -14.73 -12.08 3.71 5.03 6.24 8.02 CCCSD OPEB Benchmark -9.86 -14.33 -11.48 3.77 4.93 6.19 8.00 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 HIGHMARKO CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 14 Selected Period Performance CCCSD - OPEB Period Ending: 7/31/2022 Year Inception to Date to Date 1 Month (7 Months) 1 Year 3 Years 5 Years 10 Years 04/01/2009 Cash Equivalents .00 .15 .16 .42 .93 .54 .45 Fixed Income ex Funds 2.49 -7.64 -8.58 .24 Total Fixed Income 2.35 -8.20 -9.11 .11 1.51 1.97 3.58 Bloomberg US Aggregate Bd Index 2.44 -8.16 -9.12 -.21 1.28 1.65 3.01 Total Equities 8.27 -12.88 -8.45 9.86 9.50 11.21 13.03 Large Cap Funds 9.11 -12.11 -4.18 13.09 12.34 13.57 14.53 S&P 500 Composite Index 9.22 -12.58 -4.64 13.36 12.83 13.80 Mid Cap Funds 9.84 -13.94 -9.92 9.32 9.34 10.72 Russell Midcap Index 9.87 -13.83 -9.83 9.47 9.69 12.32 15.19 Small Cap Funds 9.68 -12.17 -12.37 7.32 8.52 12.21 15.25 Russell 2000 Index 10.44 -15.43 -14.29 7.51 7.12 10.60 13.37 International Equities 2.73 -15.63 -16.89 3.44 2.62 4.85 7.46 MSCI EAFE Index 4.98 -15.56 -14.32 3.16 2.61 5.79 7.58 MSCI EM Free Index -.25 -17.83 -20.09 .90 .95 2.84 6.80 RR: REITS 8.62 -13.78 -4.47 6.30 6.92 Wilshire REIT Index 8.73 -14.79 -3.48 6.40 6.80 7.98 15.59 Total Managed Portfolio 5.10 -10.38 -8.33 5.22 5.77 6.66 8.37 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. JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 15 Fixed Income Portfolio: Statistics As of Second Quarter 2022 CCCSD BC Aggregate Bond OPEB Index Weighted Average Maturity 9.17 years 8.92 years Effective Duration 6.17 years 6.43 years Average Coupon 3.44% 2.69% Yield to Maturity 4.29% 3.66% Average Quality Aa3 Aa2 Source: BondEdge J HIGHMARK® CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 16 Fixed Income Portfolio: Sectors As of Second Quarter 2022 45.0% 40.0% — 35.0% 30.0% 25.0% - 20.0% — 15.0% — 10.0% — 5.0% — 0.0% Cash Treasury Agency Corp Non-Corp MBS CM❑ ABS CMBS ■CCCS❑❑PEB 0.0% 18.5% 0.0% 34.7% 2.5% 29.3% 0.0% 13.9% 1.1% ■Barclays U.S.Aggregate Bond Index 0.0% 40.2% 1.3% 23.3% 4.0% 29.0% 0.0% 0.3% 2.0% Source: BondEdge JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 17 Fixed Income Portfolio: Effective Duration and Effective Maturity As of Second Quarter 2022 Effective Duration Effective Maturity 40% 309%4 35% 25°fa 30% 20°fa 25% 15�fa 20% C/a 15% 10 10% 5��a 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 15.65% 11.87% 24.46% 16.64% 12.20% 19.18% ■CCCSD OPEB 11.54% 10.68% 15.09% 8.23% 17.80% 36.68% BC Aggregate Bond Index 0.14% 22.09% 21.70% 28.33% 11.79% 15.93% BC Aggregate Bond Index 0.04% 20.40% 15.40% 13.62% 21.10% 29.44% Source: BondEdge JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 18 Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:30-Jun-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX 17,546.7600 $42.5500 $746,614.64 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX 120,314.7810 $15.2900 $1,839,613.00 Equities ISHARES RUSSELL MIDCAP ETF IWR 55,189.0000 $64.6600 $3,568,520.74 Equities ISHARES S&P 500 GROWTH ETF IVW 55,524.0000 $60.3500 $3,350,873.40 Equities ISHARES S&P 500 VALUE ETF IVE 30,137.0000 $137.4600 $4,142,632.02 Equities ISHARES TR CORE S&P500 ETF IVV 18,271.0000 $379.1500 $6,927,449.65 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX 20,838.9760 $35.1900 $733,323.57 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX 37,175.9240 $76.8700 $2,857,713.28 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA 50,485.0000 $40.8000 $2,059,788.00 Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX 62,784.6770 $83.7600 $5,258,844.55 Equities VANGUARD REAL ESTATE ETF VNQ 16,541.0000 $91.1100 $1,507,050.51 Equities VANGUARD SMALL CAP GR VIPERS VBK 13,460.0000 $197.0300 $2,652,023.80 Fixed Income PIMCO HIGH YIELD,INSTL #108 PHIYX 100,040.9840 $7.5900 $759,311.07 Fixed Income PIMCO TOTAL RETURN INSTL #35 PTTRX 616,780.7450 $9.0000 $5,551,026.71 Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX 440,957.7060 $12.4400 $5,485,513.86 Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX 374,011.8550 $10.0800 $3,770,039.50 Fixed Income DEVON ENERGYCORP NE 4.500% 1/15/30 DEC4530A 52,000.0000 94.460% $49,119.20 Fixed Income EXETER ATMOBILE REC 1.050% 5/15/26 EAR0026A 80,000.0000 96.834% $77,467.20 Fixed Income GM FIN CONS ATMB TR 0.450% 7/16/25 GFC0025B 125,667.6100 98.299% $123,530.00 Fixed Income ACACN 2015-1A NTS 3.600% 9/15/28 A21\13627 135,500.4000 94.687% $128,301.26 Fixed Income AERCAP IRELAND CAPIT 3.300% 1/30/32 AIC3332 200,000.0000 80.049% $160,098.00 Fixed Income ALASKA AIRLINES EQ 4.800% 2/15/29 AAE4829 114,714.2800 98.668% $113,186.29 Fixed Income AMERICAN CAMPUS CMNT2.250% 1/15/29 ACC2229 75,000.0000 92.600% $69,450.00 Fixed Income AT&T INC GLBL NT 3.500% 6/01/41 AIG3541 260,000.0000 79.848% $207,604.80 Fixed Income ATT 2013-1-2 2A 3.070% 3/15/48 A233048 235,000.0000 99.570% $233,989.50 Fixed Income AVIS BUD RENTAL FDG 2.970% 3/20/24 ABR2924 175,000.0000 99.682% $174,443.50 Fixed Income BOEING CO CR SEN SR 2.196% 2/04/26 BCC2126 175,000.0000 90.137% $157,739.75 Fixed Income BRITISH AIRWAYS 2013 4.625% 12/20/25 BA24625 85,212.5100 98.554% $83,980.34 Fixed Income BROADSTONE NET LEASE 2.600% 9/15/31 BNL2631 130,000.0000 81.551% $106,016.30 Fixed Income BRUNSWICK CORP 2.400% 8/18/31 BC22431 130,000.0000 74.001% $96,201.30 JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 19 Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:30-Jun-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income CALIFORNIA HEALTH FA 4.353% 6/01/41 CHF4341 135,000.0000 93.680% $126,468.00 Fixed Income CAPITAL ONE CC TR 1.720% 8/15/24 C000024 250,000.0000 100.005% $250,012.50 Fixed Income CAPITAL ONE PRIME TR 2.670% 6/16/25 COP2625 115,000.0000 98.919% $113,756.85 Fixed Income CARVANA AUTO RECS TR 0.660% 6/12/28 CAR0628 190,006.0600 98.008% $186,221.14 Fixed Income CITIGROUP INC SR FLT 1.330% 2/24/28 CIS0028 165,000.0000 95.923% $158,272.95 Fixed Income CREDIT ACCP AUTO LN 2.390% 4/15/29 CAA2329 250,000.0000 98.235% $245,587.50 Fixed Income CROWN CASTLE TOWERS 3.663% 5/15/45 CCT3645 175,000.0000 97.802% $171,153.50 Fixed Income CVS HEALTH CORP 5.050% 3/25/48 CHC5048 77,000.0000 95.725% $73,708.25 Fixed Income DALLAS FT WORTH TEX 4.507% 11/01/51 DFW4551 150,000.0000 97.196% $145,794.00 Fixed Income DARDEN RESTAURANTS 4.550% 2/15/48 DR44548 175,000.0000 81.949% $143,410.75 Fixed Income DICKS SPORTING GOODS 4.100% 1/15/52 DSG4152 105,000.0000 66.496% $69,820.80 Fixed Income DNKN 2017-1A A211 4.030% 11/20/47 D2A4047 177,137.5000 95.697% $169,515.27 Fixed Income DRIVE AUTO REC TR 200.580% 12/15/25 DAR0025 195,000.0000 97.735% $190,583.25 Fixed Income DRIVE AUTO REC TR 204.300% 4/15/26 DAR4326 197,557.3100 100.435% $198,416.68 Fixed Income ENERGY TRANSFER OPER 5.800% 6/15/38 ET05838 125,000.0000 93.668% $117,085.00 Fixed Income EXETER AUTO RECV TR 0.690% 1/15/26 EAR0826 275,000.0000 97.814% $268,988.50 Fixed Income EXETER AUTO RECV TR 3.710% 3/17/25 EAR3725 147,175.5700 99.936% $147,081.38 Fixed Income F&G GLOBAL FUNDING 2.000% 9/20/28 FGF2028 130,000.0000 84.127% $109,365.10 Fixed Income FAIRFAX US INC 4.875% 8/13/24 FU14824 115,000.0000 99.735% $114,695.25 Fixed Income FGLMC#E03097 2.500% 3/01/27 E03097F 63,723.8700 98.678% $62,881.44 Fixed Income FGLMC#G60453 3.000% 1/01/46 G60453F 107,296.7400 95.176% $102,120.75 Fixed Income FGLMC#J30401 3.000% 1/01/30 J30401F 71,868.5500 99.578% $71,565.26 Fixed Income FGLMC#Q13204 3.000% 11/01/42 Q13204F 80,250.1900 94.828% $76,099.65 Fixed Income FHLMC#SD8230 4.500% 6/01/52 SD8230A 413,391.0100 100.501% $415,462.10 Fixed Income FHLMC G08823 3.500% 7/01/48 G08823F 59,673.1200 97.539% $58,204.56 Fixed Income FHLMC G14702 2.5000%3/1/2023 G14702F 8,964.6100 99.969% $8,961.83 Fixed Income FHLMC G15252 3.000% 12/01/29 G15252F 63,040.5600 99.762% $62,890.52 Fixed Income FHLMC Q38373 3.500% 1/01/46 Q38373F 57,236.9900 97.866% $56,015.55 Fixed Income FHLMC RB5091 2.500%11/01/40 RB5091A 290,545.0200 92.039% $267,414.73 Fixed Income FHLMC SB0380 3.500% 2/01/34 SB0380A 83,203.9100 100.111% $83,296.27 JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 20 Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:30-Jun-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FHLMC SB8006 3.000% 9/01/34 SB8006A 69,893.5900 98.806% $69,059.06 Fixed Income FHLMC SD8221 3.500% 6/01/52 SD8221A 607,016.3700 96.289% $584,489.99 Fixed Income FHLMC SD8222 4.000% 6/01/52 SD8222A 492,809.6000 98.727% $486,536.13 Fixed Income FHLMC V60586 3.0000%8/1/2029 V60586F 66,794.3900 99.762% $66,635.42 Fixed Income FIRST HORIZON CORPOR 4.000% 5/26/25 FHC4025 145,000.0000 98.333% $142,582.85 Fixed Income FNMA#CB3630A 4.000% 5/01/52 CB3630A 653,747.8800 98.758% $645,628.33 Fixed Income FN MA#MA4626 4.000% 6/01/52 MA4626A 473,335.4600 98.727% $467,309.90 Fixed Income FNMA#MA3238 3.500% 11/01/47 MA3238A 40,824.9600 97.735% $39,900.27 Fixed Income F N MA A L8174 3.5000%2/1/2046 AL8174A 133,566.5300 97.789% $130,613.37 Fixed Income FNMA A L8924 3.0000% 12/1/2030 AL8924A 106,613.5800 99.429% $106,004.82 Fixed Income F N MA A L9376 3.0000%8/1/2031 AL9376A 61,470.6600 99.425% $61,117.20 Fixed Income FNMA AL9861 3.000% 8/01/30 AL9861A 144,601.0400 99.694% $144,158.56 Fixed Income FNMA AS4916 3.000% 5/01/30 AS4916A 96,457.1500 99.671% $96,139.81 Fixed Income FN MA AS7729 3.0000%8/1/2046 AS7729A 105,263.4600 94.796% $99,785.55 Fixed Income F N MA AT0293 3.0000%3/1/2043 AT0293A 75,647.7500 95.028% $71,886.54 Fixed Income FNMA BC 1486 3.0000%8/1/2046 BC1486A 98,051.9500 94.775% $92,928.74 Fixed Income FNMA BM4913 3.000% 5/01/46 BM4913A 57,454.4900 95.543% $54,893.74 Fixed Income FNMA CA 6348 2.500% 7/01/50 CA6348A 198,000.0100 90.239% $178,673.23 Fixed Income FNMA CA 6638 2.500% 8/01/50 CA6638A 235,716.8100 90.118% $212,423.27 Fixed Income FNMA CA 6801 2.500% 8/01/50 CA6801A 273,597.0400 90.129% $246,590.28 Fixed Income FNMA CA 7231 2.500% 10/01/50 CA7231A 241,077.4400 90.199% $217,449.44 Fixed Income FNMA FM3494 2.500% 4/01/48 FM3494A 106,384.9300 90.766% $96,561.35 Fixed Income FNMA MA2730 2.500% 8/01/46 MA2730A 230,756.2700 90.358% $208,506.75 Fixed Income FNMA MA27792.0000% 10/1/2026 MA2779A 40,084.5300 95.392% $38,237.43 Fixed Income FNMA MA2895 3.000% 2/01/47 MA2895A 62,473.9000 94.619% $59,112.18 Fixed Income FNMA MA3210 3.500% 11/01/47 MA3210A 38,351.1400 97.575% $37,421.12 Fixed Income FNMA MA3313 3.500% 3/01/33 MA3313A 30,049.8100 100.111% $30,083.17 Fixed Income FNMA MA3332 3.500% 3/01/48 MA3332A 51,551.4600 97.980% $50,510.12 Fixed Income FNMA MA3489 3.500% 10/01/33 MA3489A 27,496.3900 100.111% $27,526.91 Fixed Income FNMA MA3536 4.000% 12/01/48 MA3536A 13,261.1600 99.904% $13,248.43 JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 21 Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:30-Jun-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income FNMA MA4123 2.000% 9/01/35 MA4123A 180,797.7400 93.449% $168,953.68 Fixed Income FNMA LIMBS INT 2.000% 8/01/36 CB1446A 194,234.4700 93.627% $181,855.91 Fixed Income FORD CR AUTO OWN TR 1.870% 3/15/24 FCA0024 42,111.1200 99.822% $42,036.16 Fixed Income GOLDMAN SACHS GROUP 1.948% 10/21/27 GSG1927 175,000.0000 88.505% $154,883.75 Fixed Income HARLEY-DAVIDSON MTR 2.450% 5/15/25 HM22425 110,000.0000 99.241% $109,165.10 Fixed Income HASBRO INC 3.550% 11/19/26 H133526 100,000.0000 95.575% $95,575.00 Fixed Income HSBC HOLDINGS PLC 1.480% 3/10/26 HHP1426 200,000.0000 98.965% $197,930.00 Fixed Income LLOYDS BANKING F/R 2.907% 11/07/23 LBG2923 200,000.0000 99.653% $199,306.00 Fixed Income LOS ANGELES REV BDS 6.574% 7/01/45 LAR6545 100,000.0000 127.447% $127,447.00 Fixed Income MAGALLANES INC 5.141% 3/15/52 M155152 165,000.0000 83.935% $138,492.75 Fixed Income MOTOROLA SOLUTIONS 5.600% 6/01/32 MS55632 145,000.0000 100.832% $146,206.40 Fixed Income MVW 2020-1 1.740% 10/20/37 M211737 130,112.3500 93.718% $121,938.69 Fixed Income ONE GAS INC SR NT 1.100% 3/11/24 OG11124 175,000.0000 95.259% $166,703.25 Fixed Income ONEBEACON U S HLDG 4.600%11/09/22 OUS4622 120,000.0000 100.400% $120,480.00 Fixed Income PACIFIC GAS&ELEC 3.150% 1/01/26 PGE3126 125,000.0000 91.535% $114,418.75 Fixed Income PENN MUTUAL LIFE INS 3.800% 4/29/61 PML3861 175,000.0000 72.025% $126,043.75 Fixed Income PHYSICIANS RLTY LP 3.950% 1/15/28 PRL3928 170,000.0000 95.282% $161,979.40 Fixed Income PRIMERICA INC SR NT 2.800% 11/19/31 PIS2831 70,000.0000 83.679% $58,575.30 Fixed Income SANTANDER RENG AT LN 2.800% 1/26/32 RA2832 230,000.0000 95.486% $219,617.80 Fixed Income SBA TOWER TRUST 1.631% 5/15/51 STT1651 140,000.0000 89.453% $125,234.20 Fixed Income SCHWAB CHARLES F/R 4.000% SCCO049 145,000.0000 84.766% $122,910.70 Fixed Income SOUTHERN CALIF EDISO4.700% 6/01/27 SCE0027 115,000.0000 100.180% $115,207.00 Fixed Income SPRINT SPECTRUM CO 4.738% 9/20/29 SSC4729 137,500.3100 100.017% $137,523.69 Fixed Income STANDARD CHARTERED 2.02201% 3/30/26 SC22026 200,000.0000 100.019% $200,038.00 Fixed Income TAOT 2019-C A3 MTGE 1.910% 9/15/23 T2A1923 34,599.3300 99.963% $34,586.53 Fixed Income TIME WARNER CABLE NT 7.300% 7/01/38 TWC7338 125,000.0000 104.416% $130,520.00 Fixed Income TRI-STATE GENERATION 6.000% 6/15/40 TG66040 115,000.0000 98.341% $113,092.15 Fixed Income UNITEDAIRI4-2A 3.750% 9/03/26 UA13726 95,304.3300 95.218% $90,746.88 Fixed Income UN ITED STATES TREAS 1.000%12/15/24 UST1024 95,000.0000 95.231% $90,469.45 Fixed Income UNITED STATES TREAS 1.750% 8/15/41 UST1741 39,000.0000 76.066% $29,665.74 JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 22 Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:30-Jun-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income UNITED STATES TREAS 2.000% 8/15/51 UST2051 28,000.0000 77.285% $21,639.80 Fixed Income UNITED STATES TREAS 2.000% 11/15/41 UST0241 888,000.0000 79.422% $705,267.36 Fixed Income UNITED STATES TREAS 2.250% 2/15/52 UST2252 102,000.0000 82.297% $83,942.94 Fixed Income UNITED STATES TREAS 2.250% 5/15/41 UST2241 280,000.0000 83.445% $233,646.00 Fixed Income UNITED STATES TREAS 2.375% 2/15/42 UST2342 875,000.0000 84.797% $741,973.75 Fixed Income UNITED STATES TREAS 2.625% 5/31/27 UST2627 250,000.0000 98.109% $245,272.50 Fixed Income UNITED STATES TREAS 2.875% 5/15/32 UST2832 1,160,000.0000 98.875% $1,146,950.00 Fixed Income UNITED STATES TREAS 3.250% 5/15/42 UST3242 344,000.0000 97.594% $335,723.36 Fixed Income UN IV CALIF REGTS MED 4.132% 5/15/32 UCR4132 140,000.0000 99.010% $138,614.00 Fixed Income UNTD AIR 2013-1 4.300% 8/15/25 UA24325 157,008.4100 95.587% $150,079.63 Fixed Income VERIZON OWNER TR 1.940% 4/20/24 VOT0024 134,962.8200 99.882% $134,803.56 Fixed Income WESTLAKE AUTO RECV 4.000% 10/16/23 WAR4023 0.0100 100.000% $0.01 Fixed Income ANHEUSER-BUSCH INBEV WLDW IN BUD/42 125,000.0000 95.185% $118,981.25 Fixed Income BLOCK FINL CORP BIDS 5.250% 10/01/25 HRB/25 80,000.0000 101.686% $81,348.80 Fixed Income COMMONWEALTH EDISON 5.875% 2/01/33 EXC/33 115,000.0000 109.389% $125,797.35 Fixed Income HESS CORP HES/33 175,000.0000 111.300% $194,775.00 Fixed Income ASSOCIATED BANC-CORP 4.250% 1/15/25 ASB25 115,000.0000 99.690% $114,643.50 Fixed Income PLAINS ALLAMERN PIP 6.700% 5/15/36 PAA36 140,000.0000 99.385% $139,139.00 Fixed Income VERIZON COMMUNICATIO 4.400% 11/01/34 VZ34B 145,000.0000 95.821% $138,940.45 Fixed Income BANK OF AMERICA CORP 4.375% 150,000.0000 82.977% $124,465.50 Fixed Income BANK OF NOVA SCOTIA 90,000.0000 92.721% $83,448.90 Fixed Income BANK OF NY MELLON 3.750% 160,000.0000 81.633% $130,612.80 Fixed Income BOARDWALK PIPELINES 4.800% 5/03/29 125,000.0000 96.891% $121,113.75 Fixed Income BRITISH AIRWAYS PLC 3.300% 6/15/34 100,783.9500 89.078% $89,776.33 Fixed Income DELTA AIR LINES 2.500% 12/10/29 98,313.8800 86.258% $84,803.29 Fixed Income ENTERGY ARKANSAS LLC 4.200% 4/01/49 120,000.0000 92.128% $110,553.60 Fixed Income FEDERAL EX CORP 1.875% 8/20/35 133,369.7200 86.751% $115,699.57 Fixed Income JPMORGA N CHASE&CO 3.650% 155,000.0000 81.900% $126,945.00 Fixed Income PNC FINLSVCS GROUP 3.400% 135,000.0000 75.932% $102,508.20 Fixed Income ROSS STORES INC 4.800% 4/15/30 125,000.0000 98.839% $123,548.75 JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 23 Holdings- Reporting as of Trade Date Account:6746055900- PARS/CCCSD 115P-OPEB As of:30-Jun-2022 Asset Type Asset Name Ticker Shares/Units Price Market Value Fixed Income SPIRITAIRLINES 2017-1 86,046.1000 87.336% $75,149.22 Fixed Income TRUIST FINL CORP F/R 5.125% 115,000.0000 82.173% $94,498.95 Fixed Income UNITED STATES TREAS 1.875% 2/15/51 370,000.0000 75.012% $277,544.40 $21,175,800.28 Cash&Cash Equivalents CASH (39,335.8300) $1.0000 ($39,335.83) Cash&Cash Equivalents FIRSTAMERN GOVTOBLIG FID CLZ#3676 FGZXX 2,826,840.8200 $1.0000 $2,826,840.82 SUBTOTALS Cash&Cash Equivalents $2,787,504.99 Equities $35,644,447.16 Fixed Income $36,741,691.42 TOTALS $75,173,643.57 JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 24 Investment Summary Since Inception_ Ci CiCisD — Pension Beginning Value 3,359,081.81 Asset Allocation Contributions 7,245,356.09 Withdrawals -12,944,420.43 Total Assets: $41 ,864 Gain (Loss) 1,448,223.91 Interest and Dividends 933,622.97 Period Ending: 6-30-2022 Net Accrued Income 57.78 2Q22 Return: -7.87% Ending Market Value $41,922.13* 1 Year Return: -10.82% Inception-to-Date Return: 2.98% Inception Date:9-1-2017 Cash Equity Plan target rate of return: 5.14% $1,778 $11,333 4.25°'/0 27.07/0 Fixed Income $28,753 68.68/0 * Ending Market Value differs from total market value on page 17 due to differences in reporting methodology. The above ending market value includes cruals. a HIGHMARK® CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 25 Asset Allocation - Central Contra Costa Sanitary District Pension As of Second Quarter 2022 Current Asset Allocation Investment Vehicle Equity 27.07% Range: 20%-40% 11,333 Large Cap Core 4.53% IVV iShares Core S&P 500 ETF 1,896 4.23% VGIAX Vanguard Growth & Income Adm 1,771 Large Cap Value 3.28% IVE iShares S&P 500 Value ETF 1,375 0.97% DODFX Dodge & Cox International Stock 406 Large Cap Growth 2.45% IVW iShares S&P 500 Growth ETF 1,026 Mid Cap Core 2.47% IWR iShares Russell Mid-Cap ETF 1,035 Small Cap Value 2.27% UBVFX Undiscovered Managers Behavioral Val R6 951 Small Cap Growth 1.88% VBK Vanguard Small-Cap Growth ETF 788 International Core 1.46% VEA Vanguard FTSE Developed Markets ETF 612 International Growth 0.99% MGRDX MFS International Growth R6 417 Emerging Markets 1.22% HHHFX Hartford Schroders Emerging Mkts Eq F 510 Real Estate 1.31% VNQ Vanguard Real Estate ETF 547 Fixed Income 68.68% Range: 50%-80% 28,753 Short-Term 7.49% VFSUX Vanguard Short-Term Investment-Grade Adm 3,137 19.92% AGG iShares Core US Aggregate Bond ETF 8,338 Intermediate-Term 20.18% PTTRX PIMCO Total Return Instl 8,450 20.09% PTRQX PGIM Total Return Bond R6 8,410 High Yield 1.00% PHIYX PIMCO High Yield Instl 419 Ca sh 4.25% Range: 0%-20% 1,778 4.25% FGZXX First American Government Oblig Z 1,778 TOTAL 100.00% $41,864 JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT , 26 Selected Period Performance PARS/CCCSD 115P - PENSION Account 6746055901 Period Ending: 6/30/2022 Year Inception to Date to Date 3 Months (6 Months) 1 Year 3 Years 09/01/2017 Cash Equivalents .14 .15 .15 .48 .95 Lipper Money Market Funds Index .13 .14 .14 .47 .91 Total Fixed Income -5.31 -11.05 -11.05 -1.07 .64 Bloomberg US Aggregate Bd Index -4.69 -10.35 -10.29 -.93 .63 Total Equities -15.26 -19.47 -15.46 6.22 7.21 Large Cap Funds -15.90 -19.66 -10.57 9.19 10.03 S&P 500 Composite Index -16.10 -19.96 -10.62 10.60 11.18 Mid Cap Funds -16.88 -21.36 -17.31 5.55 7.29 Russell Midcap Index -16.85 -21.57 -17.30 6.59 8.10 Small Cap Funds -15.62 -19.93 -21.86 3.28 6.07 Russell 2000 Index -17.20 -23.43 -25.20 4.21 5.47 International Equities -12.25 -17.53 -20.03 2.06 1.93 MSCI EAFE Index -14.51 -19.57 -17.77 1.07 1.69 MSCI EM Free Index -11.45 -17.63 -25.28 .57 .58 RR: RE ITS -15.40 -20.86 -8.44 3.85 5.17 Wilshire REIT Index -18.48 -21.64 -6.70 4.01 5.29 Total Managed Portfolio -7.87 -13.10 -10.82 1.80 2.98 CCCSD Pension Benchmark -7.43 -12.02 -10.29 2.07 3.19 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. JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 27 Selected Period Performance PARS/CCCSD 115P - PENSION Account 6746055901 Period Ending: 7/31/2022 Year Inception to Date to Date 1 Month (7 Months) 1 Year 3 Years 09/01/2017 Cash Equivalents .00 .15 .15 .42 .94 Total Fixed Income 2.23 -9.06 -10.04 -.41 1.08 Bloomberg US Aggregate Bd Index 2.44 -8.16 -9.12 -.21 1.12 Total Equities 8.11 -12.93 -8.77 8.70 8.80 Large Cap Funds 9.05 -12.39 -4.56 11.83 11.81 S&P 500 Composite Index 9.22 -12.58 -4.64 -,q Mid Cap Funds 9.84 -13.62 -9.61 8.38 9.23 Russell Midcap Index 9.87 -13.83 -9.83 9.47 10.04 Small Cap Funds 9.57 -12.26 -11.81 5.95 7.96 Russell 2000 Index 10.44 -15.43 -14.29 7.51 7.52 International Equities 2.97 -15.07 -16.41 3.61 2.50 MSCI EAFE Index 4.98 -15.56 -14.32 3.16 2.67 MSCI EM Free Index -.25 -17.83 -20.09 .90 .52 RR: REITS 8.62 -14.04 -4.76 6.16 6.86 Wilshire REIT Index 8.73 -14.79 -3.48 6.40 7.01 Total Managed Portfolio 3.73 -9.85 -8.35 2.90 3.70 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. JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 28 Holdings- Reporting as of Trade Date Account:6746055901-PARS/CCCSD 115P-PENSION As of:30-Jun-2022 Asset Type Asset Name Ticker Market Value Price Shares/Units Cash&Cash Equivalents CASH ($56.11) $1.0000 (56.1100) Cash&Cash Equivalents FIRSTAMERN GOVT OBLIG FD CLZ#3676 FGZXX $1,834.47 $1.0000 1,834.4700 Equities DODGE&COX INTL STOCK FD(CLSD)#1048 DODFX $405.63 $42.5500 9.5330 Equities HARTFORD SCHRODERS EMRG MKT FD#3150 HHHFX $510.23 $15.2900 33.3700 Equities ISHARES RUSSELL MIDCAP ETF IWR $1,034.56 $64.6600 16.0000 Equities ISHARES S&P 500 GROWTH ETF IVW $1,025.95 $60.3500 17.0000 Equities ISHARES S&P 500 VALUE ETF IVE $1,374.60 $137.4600 10.0000 Equities ISHARES TR CORE S&P500 ETF IVV $1,895.75 $379.1500 5.0000 Equities MFS INTERNATIONAL GROWTH R6#4805 MGRDX $416.51 $35.1900 11.8360 Equities UNDISCOVERED MGRS BEHAVL R6#3467 UBVFX $951.19 $76.8700 12.3740 Equities VANGUARD FTSE DEVELOPED MARKETS ETF VEA $612.00 $40.8000 15.0000 Equities VANGUARD GRO&INC ADMIRAL SHRS#593 VGIAX $1,771.44 $83.7600 21.1490 Equities VANGUARD REAL ESTATE ETF VNQ $546.66 $91.1100 6.0000 Equities VANGUARD SMALL CAP GR VIPERS VBK $788.12 $197.0300 4.0000 Fixed Income ISHARES CORE US AGGREGATE BD ETF AGG $8,337.76 $101.6800 82.0000 Fixed Income PIMCO HIGH YIELD,INSTL #108 PHIYX $418.69 $7.5900 55.1640 Fixed Income PIMCO TOTAL RETURN INSTIL #35 PTTRX $8,449.60 $9.0000 938.8440 Fixed Income PRUDENTIAL TOTAL RTRN BD CL Q PTRQX $8,410.04 $12.4400 676.0480 Fixed Income VNGRDSTTERMINVMTGRADEADM #539 VFSUX $3,137.27 $10.0800 311.2370 SUBTOTALS Cash&Cash Equivalents $1,778.36 Equities $11,332.64 Fixed Income $28,753.36 TOTALS $41,864.36 JHIGHMARK@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 1 29 CENTRAL CONTRA COSTA SANITARY DISTRICT June 30, 2022 LARGE CAP EQUITY FUNDS 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) -16.11 62 -19.97 50 -10.64 38 10.57 22 11.27 20 12.91 12 iShares S&P 500 Value ETF (4/17) -11.32 50 -11.51 48 -5.04 50 8.05 49 8.01 49 10.78 35 Vanguard Growth& Income Adm (12/16) -15.78 53 -19.06 39 -9.83 30 10.87 17 11.32 17 13.00 10 iShares S&P 500 Growth ETF (4/17) -20.84 53 -27.67 42 -16.55 23 11.44 21 13.26 19 14.14 16 S&P 500 TR USD -16.10 -19.96 -10.62 10.60 11.31 12.96 MID CAP EQUITY FUNDS iShares Russell Mid-Cap ETF (3/16) -16.88 88 -21.63 82 -17.43 81 6.42 63 7.81 35 11.11 22 Russell Mid Cap TR USD -16.85 -21.57 -17.30 6.59 7.96 11.29 SMALL CAP EQUITY FUNDS Undiscovered Managers Behavioral Val R6 (9/16) -11.05 16 -7.91 4 -3.11 3 10.76 15 8.19 10 11.83 4 Russell 2000 Value TR USD -15.28 -17.31 -16.28 6.18 4.89 9.05 Vanguard Small-Cap Growth ETF (1/22) -20.44 62 -29.94 54 -31.77 62 2.34 72 6.81 66 9.82 64 Russell 2000 Growth TR USD -19.25 -29.45 -33.43 1.40 4.80 9.30 INTERNATIONAL EQUITY Dodge&Cox International Stock 1 -9.49 18 -10.02 18 -10.93 33 3.52 16 2.14 25 6.11 5 Vanguard FTSE Developed Markets ETF (9/18) -14.08 69 -19.26 52 -18.11 46 2.12 31 2.70 32 5.85 19 MFS International Growth R6 -12.24 7 -19.38 7 -17.98 6 3.33 21 5.71 15 7.08 23 MSCI EAFE NR USD -14.51 -19.57 -17.77 1.07 2.20 5.40 Hartford Schroders Emerging Mkts Eq F -12.08 57 -19.78 56 -28.42 66 0.75 42 2.70 29 3.53 31 IMSCI EM NR USD -11.45 -- -17.63 -- -25.28 -- 0.57 -- 2.18 -- 3.06 -- REIT • Vanguard Real Estate ETF (4/17) -15.47 44 -20.52 64 -8.07 75 4.73 51 5.69 52 7.47 34 Wilshire REIT Index -18.48 -- -21.64 -- -6.70 -- 4.01 -- 5.26 -- 7.28 BOND FUNDS iShares Core US Aggregate Bond ETF (6/21) -4.67 29 -10.26 31 -10.29 27 -0.98 45 0.83 40 1.49 48 PIMCO Total Return Instl -5.46 36 -11.31 51 -11.11 46 -0.77 47 0.99 44 1.87 51 PGIM Total Return Bond R6 (5/16) -6.71 89 -12.78 91 -12.53 86 -1.34 78 1.08 36 2.56 14 Vanguard Short-Term Investment-Grade Adm -1.86 54 -5.58 74 -6.10 73 0.22 44 1.25 33 1.70 17 Bloomberg US Agg Bond TR USD -4.69 -- -10.35 -- -10.29 -- -0.93 -- 0.88 -- 1.54 -- PIMCO High Yield Instl (12/20) -9.69 46 -13.94 59 -12.68 56 -0.62 66 1.53 51 3.92 35 ICE BofA US High Yield Mstr II Index -9.97 -- -14.04 -- -12.66 -- -0.04 -- 1.95 -- 4.44 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@ CAPITAL MANAGEMENT CENTRAL CONTRA COSTA SANITARY DISTRICT 30