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HomeMy WebLinkAbout04 QUARTERLY INVESTMENT REPORT DocuSign Envelope ID: 13365E7A-167C-4D5D-B116-A7307FOED7C9 4 Agenda Item DS Reviewed: AGENDA REPORT City Manager 5W Finance Director MEETING DATE: NOVEMBER 17, 2020 TO: MATTHEW S. WEST, CITY MANAGER FROM: JASON AL-IMAM, FINANCE DIRECTOR/CITY TREASURER SUBJECT: QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY SUMMARY: Government Code Section 53646 requires that the Treasurer make an Investment Report to the City Council at least quarterly showing balances by authorized investment and certifying its compliance with the adopted Investment Policy. RECOMMENDATION: Receive and file. FISCAL IMPACT: None. CORRELATION TO THE STRATEGIC PLAN: Correlates with the City's Strategic Plan Goal C: Financial Strength, Item 3. This investment report provides evidence of the City's commitment to ensuring that investments are in compliance with the adopted Investment Policy. DISCUSSION: In compliance with Government Code Section 53646, the attached Investment Report reporting cash and investments for the City of Tustin and the Successor Agency for the Tustin Community Redevelopment Agency for the quarter ending September 30, 2020 is rendered. 'i DocuSign Envelope ID: 13365E7A-167C-4D5D-B116-A7307FOED7C9 QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY November 17, 2020 Page 2 of 3 The City's total cash and investments as of September 30, 2020 were $130 million, a decrease of$22 million from June 30, 2020 total cash and investments of$152 million. The decrease in cash and investments of$22 million is primarily due to the following significant outflows plus substantial outflows for various budgeted construction projects: • $4.5 million — prepayment for annual required employer contributions to CalPERS, reducing the unfunded actuarial liabilities for the Miscellaneous and Safety Plans. • $3 million — debt service payment for the Successor Agency Tax Allocation Refunding Bonds, Series 2016. • $2.3 million — payment to Orange County Fire Authority for 1St quarter fiscal year 2020 contract fire services. • $2.3 million — payment to Orange County Water District for water basin replenishment for January—June 2020. The weighted average portfolio yield as of September 30, 020 was 1.23%, 23 basis points lower than the weighted average portfolio yield of 1.46% as of June 30, 2020. The primary reason forthe decrease in the weighted average portfolio yield is the decline in Local Agency Investment Fund (LAIF) rates from 1.22% in June 2020 to 0.69% in September 2020. The weighted average days to maturity were 166 days as of September 30, 2020, a decrease from 176 days as of June 30, 2020. The decline in weighted average days to maturity during the last quarter was primarily caused by the decision to maintain highly liquid balances for various budgeted capital projects primarily within the Legacy development over the next one to two years. In addition, the fixed income market rates do not adequately compensate for longer term holdings presently. In June 2018, the City made a one-time contribution of $5.6 million into a Pension Trust, which is held by Public Agency Retirement Services (PARS). The Pension Trust provides for rate stabilization since Pension Trust assets can be used to offset unanticipated increases in CalPERS pension costs. The City has also made $2 million in contributions into an Other Post-Employment Benefits (OPEB) Trust, which is set-aside for future retiree healthcare costs. Pension and OPEB Trust assets are managed in a customized investment strategy that balances risk and return and provides for diversification. DocuSign Envelope ID: 13365E7A-167C-4D5D-B116-A7307FOED7C9 QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY November 17, 2020 Page 3 of 3 The Pension Trust had earnings of approximately $241,000 (4.04%) for the fiscal year-to- date (July 1, 2020 through September 30, 2020). The OPEB Trust also had earnings of approximately $85,000 (4.04%) for the fiscal year-to-date. Trust assets will continue to be monitored, with quarterly reviews with our investment advisor. The investment portfolio is currently laddered to reflect the projected cash flow needs of the City for the completion of various capital projects primarily within the Legacy. Ramp ao Ja on AI-Imam Finance Director/City Treasurer Attachments: September 30, 2020 Quarterly Investment Report PARS Trust Statement as of September 30, 2020 PARS Moderate Fact Sheet Q2 2020 �`��� City �®f�Tustin re�surer's Quarterly Investment Report September 30, .2020 =a. ,,, { "h, �' t _. � ° � � �9� f ����' o �-,, . . f ifs � �i , —moi: i. ,���i, �:,� .-�.�' '�,� 1, ^� ��MV6�� Ei � x.d �d►ii __ _ --- _, �� _• mar� .'- - yil� -���""' - �y�, d�.�: K �P III��P'��F dc3 � r- w i __ _ �- ��_ -- -- CJt�Y�iA CITY OF PERFORMANCEMonthly Investment Report September 30,2020 Weighted Average-Maturity Weighted Average-Yield to Maturity 900 2.60% Page 1 of 17 2.50% 2.40% 2.10% 700 2.00% 1.90% 600 1.80% 0.80% 200 0.7D% - 0.50% 100 0.40% 0.30% 0.10% 'r 1 1 1 •Y ti 1 1 '1 '� 'L 'L 'L 0.00% O o 0 0 o O O o 0 0 0 0 0 ti ti ti ti ti ti ti ti ti ti ti ti ti 0� .�\ M� o� 9� ti� "�� o� 9� ti� .y� b� Q� Ory h�ry yeti Ory Ory •yeti 'yeti Ory O�� 1�~ 'yeti Ory O�v �T�City of Tustin ��LAIF Yield(%) ��US Treasury/2yr CITY OF TUSTIN Monthly Investment Report September 30,2020 DIVERSIFICATION DIVERSIFICATION Investment Portfolio/Cost Value$130,402,467 Investment Portfolio/Cost Value$161,661,513 r r Negotiable Corporate Certificate of Bonds Deposit $25,590,742 $30,995,115 15.83% Liquid(Daily) 19.17% $80,689,312 Corporate Bonds 61.88% Municipal $18,605,833 Bonds 14.27% $7,401,154 , 4.58% ..... J r Liquid(Daily) $45,288,652 28.01% Federal Agencies - $52,385,850 32.40% U5 Treasury $0 Negotiable Certificate of hw .'' 0.00% Deposit Federal Agencies i $15,865,591 Municipal Bonds $9'849'957 US Treasury 12.17;. $5,391,774 7.55% �- $o 4.13% 0.00% Page 2 of 17 CITY OF TUSTIN Monthly Investment Report September 30,2020 Maturity Distribution Investment Type 1 USTreasury - - - - - - - - 0.000% Federal Agencies - 1,003,957 1,850,000 - 6,996,000 - - 9,849,957 7.55% Municipal Bonds - 1,023,400 1,338,625 2,779,749 250,000 5,391,774 4.13% Commercial Paper - - - - - - - - 0.00% Certificate of Deposit - - - - - - - - 0.00% Negotiable Certificate of Deposit 1,489,000 1,986,000 3,223,000 3,720,000 3,468,591 1,733,000 246,000 15,865,591 12.17% Corporate Bonds 3,002,402 3,015,753 - - 11,553,536 1,034,142 - 18,605,833 14.2Ti6 Liquid(Daily) 80,689,312 - - - - - - 80,689,312 61.88% Total 85,18,714 6,005,710 6,096,400 5,058,625 24,797,876 3,017,142 246,000 130,402,467 100.000% Liquidity Distribution Ori , 00 60.00% 50.00% 0 Local Agency Investment Fund 40.00% z Investments E Ca i ornia Asset Management Program 30.00% a Bank of America-Checking 10.0o% 0-56 Up to I Year 1-2 Years 2-3Years� 3-4 Years Page 3 of 17 CITY OF TUSTIN Monthly Investment Report September 30,2020 0 Maximum Maximum% Maximum% Minimum Investment Type Maturity Municipal Bonds* Holdings 5 year 30% 5% N/A 4.13%, $5,391,774 Compliance Invested Yes U.S.Treasuries and General Obligations 5 year 100% 100% N/A 0.00% $0 Yes Federal Agency or US government sponsored 5 year 100% 50% N/A 7.55% $9,849,957 Yes enterprise Banker's Acceptance* 180 days 30% 5% N/A 0.00% $0 Yes Commercial Paper* 270 days 25% 5% A-1/P-1 plus 0.00% $0 Yes A longterm Negotiable Certificates of Deposit 5 year 30% 5% N/A 12.17% $15,865,591 Yes Repurchase Agreements(102%Collateralized)* 1 year 30% 5% N/A 0.00% $0 Yes Medium-Term(Corporate)Notes* 5 year 20% 5% A 14.27% $18,505,833 Yes Money Market Mutual Funds N/A/2(A)7 20% 10% AAA/AAA 0.00% $0 Yes Eligible Shares of beneficial interest by a IPA 5 year 100% 50% N/A 4.53% $5,904,946 Yes Supranationals(IBRD,IFD,and IADB)* 5 year 15% 5% AA 0.00% $0 Yes Collateralized Bank Deposits 5 year 100% 30% N/A 0.00% $0 Yes Orange County Investment Pool N/A Max pemitted by Max permitted by N/A 0.88% $1,141,428 Yes County Tresurer County Treasurer Local Agency Investment Fund N/A Max pemitted by Max permitted by State N/A 55.65% $72,573,553 Yes State Tresurer Treasurer Bank of America(General Checking Account) N/A N/A N/A N/A 0.82% $1,069,385 Yes Total Invested $130,402,467 Combined total limitation(total classes with 30% 18.40% $23,997,607 Page 4 of 17 CITY OF TUSTIN Monthly Investment Report September 30,2020 COMPLIANCE Investment Policy/ Corporate Bonds Corporate Bonds are required,at Settlement Date,to have an"A"rating from one of the three rating agencies. Rating Current Rating Prior Month Rating CUSIP Face Amount Settlement Date Moody's S&P Fitch Moody's S&P Fitch Compliance Apple Inc. 0378331358 2,000,000 AA+ Aal AA, NR Aal AA+ NR Yes Apple Inc. 037833CQ1 2,000,000 AA+ Aal AA+ NR Aal AA+ NR Yes Berkshire Hathaway 084670BQO 1,000,000 AA Aa2 AA A+u Aa2 AA A+u Yes Chevron Corporation 166764BN9 2,000,000 AA- Aa2 AA NR Aa2 AA NR Yes Coca-Cola Co 191216BTG 1,000,000 AA- Al A+ Au Al A+ Au Yes IBM Credit LLC 44932HAC7 1,000,000 A+ A2 A WD A2 A WD Yes Microsoft Corporation 594918BG8 1,000,000 AAA Aaa AAA AA+u Aaa AAA AA+u Yes Pfizer Inc 717081DZ3 1,000,000 AA Al AA- Au Al AA- Au Yes Procter&Gamble Co 742718DY2 1,000,000 AA- Aa3 AA- NR Aa3 AA- NR Yes Toyota Motu,Credit Corp 89236TEC5 2,482,750 AA_ Al A+ Ai Al A, Ai Yes Toyota Motor Credit Corp 89236TDP7 1,000,000 AA- Al A+ A+ Al A+ A+ Yes Toyota Motor Credit Corp 89236TFNO 1,000,000 AA- Al A+ A+ Al A+ A+ Yes VISA Inc 92826CAG7 1,000,000 A+ Aa3 AA- NR Aa3 AA- NR Yes Walmart Store Inc 931142EA7 1,000,000 AA Aa2 AA AA Aa2 AA AA Yes Page 5 of 17 CITY OF TUSTIN Monthly Investment Report September 30,2020 Cash and Investments/Summary [11 121 [31 [41 [5] Description/Limits Face Amount Shares YTM@Cost Credit Rating Cost Value+Accrued Market Value Interest Investment Portfolio .49,546,000.00 2.17 49,713,154.77 50,724,221.98 Daily-Limit: [6]Reconciled/Bank of America Account-General Checking 0.19 N/A 1,069,385.08 1,069,385.08 Orange County Investment Pool 1.00 [7] 1,141,427.90 1,141,427.90 LAIF/Local Agency Investment Fund 0.69 N/A 72,573,553.18 72,573,553.18 California Asset Management Program(CAMP) 0.27 AAAm 5,904,945.78 5,904,945.78 80,689,311.94 80,689,311.94 Investment Portfolio TOTAL 130,402,466.71 131,413,533.92 Performance Measurement Weighted Average Days to Maturity 166 Weighted Average Yield 1.23% Benchmark/Treasury 2 Year 0.67% Restricted/Un-Restricted Funds LIN-RESTRICTED General Fund cash balance as of 9/30/2020(unaudited) 12,838,856.18 SEMI-RESTRICTED Cash Balance as of 9/30/2020(unaudited) 50,930,072.37 Capital Projects,Proceeds from Land Sales,Backbone Infrastructure RESTRICTED Cash balances as of 9/30/2020(un-audited) 66,429,997.83 Total 130,198,926.38 Successor Agency Community Redevelopment Agency/Cash&Investments Total 203,540.33 Page b of 17 CITY OF TUSTIN Monthly Investment Report September 30,2020 Restricted Deposits with Fiscal Agents [1] [21 131 141 [51 Description/Limits Face Amount Shares YTM@Cost Credit Rating Cost Value+Accrued Market Value Interest 2016 Successor Agency Tax Allocation Bonds,Refunding 1.23 N/A 1.23 1.23 2016 Water Revenue Bonds,Refunding 343,650.00 N/A 343,650.00 343,650.00 2012 Water Revenue Bonds-Refunding 55,300.00 N/A 55,300.00 55,300.00 2020 Water Revenue Bonds 241,610.29 N/A 241,610.29 241,610.29 CFD 04-1 586,312.28 N/A 586,312.28 586,312.28 CFD 06-1 6,704,096.60 N/A 6,704,096.60 6,704,096.60 CFD 07-1 1,141,071.53 N/A 1,141,071.53 1,141,071.53 CFD 14-1 11,417,364.94 N/A 11,417,364.94 11,417,364.94 20,489,406.87 20,489,406.87 20,489,406.87 Restricted Deposits with Fiscal Agents TOTAL 20,489,406.87 20,489,406.87 Page 7 of 17 DocuSign Envelope ID:92406F18-OECO-47AC-BD97-B8A944548FD7 CITY OF TUSTIN Monthly Investment Report September 30,2020 Footnotes (1)DESCRIPTION-LIMITS reflects the various authorized Investments as documented in the most current adopted investment policy and the allowable percentage of total portfolio per investment type. (2)FACE AMOUNT/SHARES is the full value of the security before any discount or premium is paid at purchase. (3)CREDIT RATING is the highest ratings from Standards&Poor's,Moody's or IDC Publishing Inc for bank ratings.IDC ratings are 1(lowest)to 300(highest). (4)COST VALUE+ACCRUED INTEREST is the original amount paid,including premiums/discounts,and purchased accrued interest. Amortization of discount/premium booked annually or when investment is sold/called/or matures. (5)MARKET VALUE is the price at which similar securities are currently trading.Current market values are provided by Bank of America and the State Treasurer's Office on all securities or deposits held in safekeeping for the City and the Successor Agency for the Tustin Community Redevelopment Agency. Market value differences are only booked at year end. (6)EARNINGS ALLOWANCE on compensating bank balances to offset bank activity charges.Allowance is included in the Average Yield calculation.The cash balances include amounts"swept"from account for overnight investments. (7)ORANGE COUNTY INVESTMENT POOL rating Is AAAm.Orange County Treasury Extended Fund is not rated by sponsor's choice. (9)Investments and earnings on monies held by fiscal agents generally are limited as to type and yield by the bond documents. Certifications We certify that this report reflects all City of Tustin and the Successor Agency for the Tustin Community Redevelopment Agency(SATCRA)pooled investments.The investments represented in this report are in conformity with the current adopted investment policy of the City of Tustin.The market values represented in this report are provided by the Custodian Bank and Trustees currently holding securities for the City of Tustin and SATCRA. The investment program herein shown provides sufficient cash flow liquidity to meet the next twelve(12)months estimated expenditures. This statement is prepared in conformance with Section 53646 of the Government Code. Larry Friend,Chair I Jason AI-Imam,Finance Director/ City of Tustin Audit Commission City of Tustin Treasurer Page 8 of 17 CITY OFTUSTIN --,ti • _ Monthly investment Report 9` September 30,2020 Compliance/Investment Policy Description Limits Face Amount Maximum Maturity• Allowable Total Cost Value+Accrued Market Value Shares Years/days Portion of Percentage Interest US Agency 9,850,000.00 5years 100% 7.55% 9,849,956.94 10,089,446.71 Municipal Bonds 5,330,000.00 5years 30% 4.13% 5,391,774.34 5,450,273.60 Certificate of Deposit/Negotiable 15,866,000.00 5 years 30% 12.17% 15,865,59D.94 16,212,432.58 Corporate Bonds 18,500,000.00 5years 20% 14.27% 18,605,832.55 18,972,069.09 Cash N/A N/A N/A 0.82% 1,069,385.08 1,069,385.08 Orange County Investment Pool N/A N/A N/A 0.88% 1,141,427.90 1,141,427.90 LAIF/Local Agency Investment Fund N/A N/A N/A 55.65% 72,573,553.18 72,573,553.18 California Asset Management Program CAMP Shares of beneficial Interest by a IPA N/A N/A N/A 4.53% 5,9D4,945.78 5,904,945.78 100.00% 130,402,456.71 131,413,533.92 Restricted Cash with Fiscal Agents' 20,489,406.87 20,489,406.87 Investment Portfolio TOTAL 150,891,873.58 151,902,940.79 +Cash with Fiscal Agents are the Reserve and Construction Funds,held by Trustees for various City and RDA Bond Issues.Investment options are limited to those spedfi,,1Iy permitted by bond documents. Page 9 of 17 City of Tustin Portfolio Holdings Compliance Report-Investment Policy Report Format:By Transaction Group By:Asset Class Average By:Cost Value Portfolio/Report Group:All Portfolios As of 9/30/2020 YTM Days To Maturity Settlement @ Credit Credit Face Cost Value+ %of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Accrued Interest Cost Price Market Value Portfolio >Liquid Assets Bank of America- MM0220 1 N/A 6/30/2015 0.190 NR NR 1,069,385.08 1,069,385,08 100 1,069,385.08 0.82 Checking MM California Asset Management Program CAMP6045 1 N/A 5/10/2017 0.270 NR NR 5,904,945.78 5,904,945.78 100 5,904,945.78 4.53 LGIP Local Agency LGIP0936 1 NIA 6130/2015 0.685 NR NR 71,454,625.51 71,454,625.51 100 71,454,625.51 54.84 Investment Fund LGIP Local Agency LGIP0002 1 N/A 6/30/2015 0.685 NR NR 1,118,927.67 1,118,927.67 100 1,118,927.67 0.86 Investment Fund LGIP Orange County LGIP9LE 1 N/A 6/30/2015 1.001 NR NR 1,141,427.90 1,141,427.90 100 1,141,427.90 0,88 Investment Pool LGIP Sub Total I Average> 1 0.653 80,689,311.94 80,689,311.94 100 80,689,311.94 61.93 Liquid Assets Certificate of Deposit-Negotiable 30% Abacus Federal Savings Bank 1.95 00257TAY2 294 7/21/2021 7/21/2017 1.950 NR NR 248,000.00 248,000.00 100 251,745.79 0.19 7/21/2021 Allegiance Bank 2.2 01748DAY2 764 11/3/2022 1113/2017 2.200 NR NR 248,000.00 248,000.00 100 258,619.61 0.19 11/3/2022 Alliance Credit Union 01859BAA3 743 10/1312022 10/13/2017 2.250 NR NR 248,000.00 248,000.00 100 258,600.76 0.19 2.25 10/13/2022 Alma Bank 1.7 020080BE6 70 12/9/2020 1219/2016 1.700 NR NR 248,000.00 248,000.00 100 248,781.20 0.19 12/9/2020 American Eagle Bank 2 02554BGR0 456 12130/2021 7/13/2017 2.000 NR NR 247,000.00 247,175.95 100 252,871.68 0.19 12/30/2021 American National Bank-Fox Cities 1.75 02771 PNQ6 54 11/23/2020 5/23/2017 1.750 NR NR 248,000.00 248,000.00 100 248,618.76 0.19 11/23/2020 03753XAE0 140 2/17/2021 8117/2016 1.250 NR NR 248,000.00 248,000.00 100 249,118.98 0.19 Page 10 of 17 YTM Days To Maturity Settlement @ Credit Credit Face Cost Value+ %of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Accrued interest Cost Price Market Value Portfolio Apex Bank 1.25 2117/2021 Bank of the Parc 1.25 06425BCK3 236 5/24/2021 8/24/2016 1.250 NR NR 248,000.00 248,000.00 100 249,892.49 0.19 5/24/2021 Bankers Bank Madison 06610RAQ2 287 7/14/2021 7/14/2017 1.900 NR NR 248,000.00 248,000.00 100 251,559.05 0.19 VA 1.9 7/14/2021 Barclays Bank Delaware 2.2 06740KKD8 650 7/12/2022 7/12/2017 2.200 NR NR 247,000.00 247,000.00 100 256,123.19 0.19 7/12/2022 Celtic Bank 2.1 15118RMF1 568 4/21/2022 4/21/2017 2.1D0 NR NR 248,000.00 248,000.00 100 255,649.06 0.19 4/21/2022 Central Federal SSL Assoc of Chicago 2.85 15347EAH2 271 6/28/2021 6/28/2018 2.850 NR NR 249,000.00 249,000.00 100 254,134.63 0.19 6/28 Central State Bank 15523RBJ4 287 7/14/2021 7/1412017 1.850 NR NR 248,000.00 248,000.00 100 251,461.09 0.19 Iowa 1.85 7/14/2021 Citibank Sioux Falls SD 17312ON47 258 6/15/2021 6115/2018 3.000 NR NR 246,000.00 246,000.00 100 251,109.42 0.19 36/15/2021 Citizens State Bank 17670DAD6 273 6/30/2021 6/30/2017 1.850 NR NR 248,000.00 248,000.00 100 251,292.45 0.19 1.85 6/30/2021 Commercial Bank Alma 201282HD5 320 8/16/2021 8/16/2016 1.400 NR NR 248,000.00 248,000.00 100 250,866.63 0.19 Mi 1.4 8/16/2021 Country Bank NY 2.9 22230PBS8 261 6/18/2021 6120/2018 2.900 NR NR 249,000.00 249,000.00 100 254,053.70 0.19 6/18/2021 Delaware State Police Federal Credit Union 3 246399AB5 1,276 3/29/2024 3/29/2019 3.000 NR NR 246,000.00 246,000.00 100 269,556,22 0.19 3129/ DNB First,National Association 2 25590AAH3 631 6/23/2022 6/2312017 2.000 NR NR 248,000.00 248,000.00 100 256,020.57 0.19 6/23t2022 Eagle Bank Bethesda 27002YDS2 258 6/15/2021 611512018 2,900 NR NR 249,000.00 249,000.00 100 254,092.05 0,19 MD 2.9 6115/2021 Enerbank USA 1.45 29266N31-18 330 8/26/2021 8/26/2016 1.450 NR NR 248,000.00 248,000.00 100 251,067.76 0.19 8/26/2021 First Bank of Highland 319141JF5 769 11/8/2022 11/8/2017 2.200 NR NR 248,000.00 248,000.00 100 258,696.98 0.19 Park 2.2 11/812022 First Bank Richmond 319267GE4 89 12128/2020 6/2712017 1.800 NR NR 248,000.00 248,000.00 100 249,056.48 0.19 1.8 12/28/2020 ' First Federal Savings 32021YDA8 107 1/15/2021 11/15/2017 1.900 NR NR 248,000.00 248,000.00 100 249,331.26 0.19 Bank 1.9 1/15/2021 First Internet Bank of 32056GCQ1 652 7/14/2022 7/14/2017 2.050 NR NR 248,000.00 248,000.00 100 256,496.73 0.19 Indiana 2.05 7/1412022 Page 11 of 17 YTM Days To Maturity Settlement @ Credit Credit Face Cost Value+ %of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Accrued Interest Cost Price Market Value Portfolio First Premier Bank 2.05 33610RQY2 691 8/2212022 8/21/2017 2.050 NR NR 248,000.00 248,000.00 100 257,004.14 0.19 8/22/2022 First Security State 336386AXS 145 2/22/2021 6/22/2018 2.850 NR NR 249,000.00 249,000.00 100 251,735.02 0.19 Bank IA 2.85 2/2272021 First Tech Federal CU Palo Alto CA 3.05 33715LBL3 257 6/14/2021 6/14/2018 3.050 NR NR 249,000.00 249,000.00 100 254,220,29 0.19 6!14/2021 FNB Bank,InclRomney 30257JACS 292 7/19/2021 7119/2017 1.850 NR NR 248,000.00 248,000.00 100 251,521.35 0.19 1.85 7/19/2021 Gold Coast Bank 1.9 38058KDU7 222 5/10/2021 11/912017 1.900 NR NR 248,000.00 248,000.00 100 250,766.44 0.19 5!10/2021 Great Plains Bank 1.85 39115UAZ6 447 12/21/2021 4/21/2017 1.850 NR NR 248,000.00 248,000.00 100 253,315.38 0.19 12/21!2021 Kessler Federal CU 3 49254FAQ9 334 8/30/2021 2/28/2019 3.000 NR NR 249,000.00 249,000.00 100 255,653.53 0.19 8/3012021 Lakeside Bank 1.75 51210SMS3 50 11/19/2020 5119/2017 1.750 NR NR 248,000.00 248,000.00 100 248,572.14 0.19 11/19/2020 Lead Bank 1.7 521680AE8 132 2/912021 8/9/2017 1.700 NR NR 248,000.00 248,000.00 100 249,454.52 0.19 219/2021 Luana Savings Bank 54910321-2 134 2/11/2021 8/11/2017 1.700 NR NR 248,000.00 248,000,00 100 249,510.32 0.19 1.7 2111/2021 Marine Bank 1.85 56817TAB7 272 6/29/2021 6/29/2017 1.850 NR NR 248,000.00 248,000.00 100 251,280.54 0.19 6/29/2021 Mercantil Bank Coral 58733AEX3 264 6/21/2021 6/2112018 3.000 NR NR 246,000.00 246,000.00 100 251,227.99 0.19 Gables FL 3 6/21/2021 Morton Community 619165GW7 77 12/16/2020 12116/2016 1.700 NR NR 248,000.00 248,000.00 100 248,860.31 0.19 Bank 1.7 12/16/2020 Mountain America Credit Union 2.3 62384RAGO 769 11/8/2022 11/8/2017 2.300 NR NR 248,000.00 248,000.00 100 259,207.62 0.19 11/812022 National Cooperative 635573AH1 160 3/9/2021 3/9/2016 1.500 NR NR 248,000.00 248,000.00 100 250,079.23 0.19 Bank 1.5 319/2021 Nebraska State B&T 63969ACD4 509 2/2112022 4/21/2017 1.950 NR NR 248,000.00 248,000.00 100 254,347.81 0.19 Co.1.95 2012022 NebrBank 1..85 6/2 National 639700FG6 271 6/28/2021 6/28/2017 1.850 NR NR 248,000.00 248,000.00 100 251,268.39 0.19 Bank 1.85 6128!2021 Northfield Bank 1.95 66612ABV9 385 10/2012021 1111/2017 2.029 NR NR 248,000.00 247,414.99 99.7 252,867.74- 0.19 10/20/2021 Palmetto Heritage Bank and Trust 1.9 69709QAM3 324 8/20/2021 812112017 1.900 NR NR 248,000.00 248,000.00 100 252,016.36 0.19 8/2012021 - 70212YAW2 320 8/16/2021 8/15/2017 1.850 NR NR 248,000.00 248,000.00 100 251,881.45 0.19 Page 12 of 17 YTM Days To Maturity Settlement @ Credit Credit Face Cost Value+ %of Description CUSIP/Ticker Maturity Date Date Cost Rating f Rating 2 Amount/Shares Accrued Interest Cost Price Market Value Portfolio Partners Bank of California 1.85 8/16/2021 Plus International Bank 72940UJF3 75 12/14/2020 6/13/2018 2.800 NR NR 249,000.00 249,000.00 100 250,404.11 0.19 2.6 12/14/2020 Ponce De Leon Federal 732333AG4 238 5/26/2021 5/2612017 1.900 NR NR 248,000.00 248,000.00 100 250,964.84 0.19 Bank 1.9 5/26/2021 RCB Bank Claremore 74934YAJO 264 6/21/2021 6/20/2018 2.900 NR NR 249,000.00 249,000.00 100 254,092.05 0.19 OK 2.9 6/21/2021 Sallie Mae Bank 3 79545OM93 930 4/1812023 411812018 3.000 NR NR 245,000.00 245,000,00 100 262,626,04 0.19 4/18/2023 Signature Bank Chicago 2.15 82669VBY6 769 11/812022 1118/2017 2.150 NR NR 248,000.00 248,000.00 100 258,436.09 0.19 11/8/2022 Stock Yams Bank& Trust Co KY 2.9 861026AAO 257 6/14/2021 6/14/2018 2.900 NR NR 246,000.00 246,000.00 100 250,915.33 0.19 6/14/2021 Stone Bank 1.85 8615BRAMI 103 1111/2021 10/11/2017 1.850 NR NR 248,000.00 248,000.00 . 100 249,246.20 0.19 1111/2021 The Business Bank of Saint Louis 1.8 12325EHU9 266 6123/2021 6/23/2017 1.800 NR NR 246,000.00 248,000.00 100 251,117.86 0.19 6123!2021 The First National Bank 330459SUl 687 8118/2022 8/18/2017 2.000 NR NR 248,000.00 248,000.00 100 256,684.71 0.19 of Mayfield 2 8/1812022 The Lake Bank MN 2.9 507515BE3 229 5/17/2021 6/22/2018 2.900 NR NR 249,000.00 249,000.00 100 253,434.44 0.19 5/17/2021 The North Jackson 32063KAS1 586 5/9/2022 11/8/2017 2.050 NR NR 248,000.00 248,000.00 100 255,683.29 0.19 Bank 2.05 5/9/2022 The Ohio Valley Bank Company 1.9 677721CNO 476 1/1912022 7/19/2017 1.900 NR NR 248,000.00 248,000.00 100 253,798.74 0.19 1119/2022 Towne Bank Portsmouth VA 3 89214PBR9 271 6128/2021 6/28/2018 3.000 NR NR 246,000.00 246,000,00 100 251,366.24 0.19 6128/2021 Traverse City State 894333FF5 636 6/28/2022 6/28/2017 2.000 NR NR 248,000.00 248,000.00 100 256,091.74 0.19 Bank 2 6/28/2022 Triad Bank 1.85 89579NBU6 194 4112/2021 10/12/2017 1.850 NR NR 248,000.00 248,000.00 100 250,352,03 0.19 4/1212021 UBS Bank USA Salt Lake City UT 3.25 90348JCW8 986 6113/2023 6/13/2018 3.250 NR NR 248,000.00 248,000.00 100 268,535.64 0.19 6113/2023 Uinta County State 903572CC7 378 10/13/2021 10/13/2017 2.050 NR NR 247,000.00 247,000.00 100 252,017.56 0.19 Bank 2.05 10/13/2021 Page 13 of 17 YTM Days To Maturity Settlement @ Credit Credit Face Cost Value+ %of Description CUSIP/Ticker Maturity Date Date Cost Rating i Rating 2 Amount/Shares Accrued Interest Cost Price Market Value Portfolio US Alliance FCU NY 3 90352RAB1 145 2/2212021 6/22/2018 3.000 NR NR 249,000.00 249,000.00 100 251,882.42 0.19 2/22/2021 Winter Hill Bank,FSB 975876AK1 271 6/28/2021 6/26/2017 1.800 NR NR 248,000.00 248,000.00 100 251,176.14 0.19 1.8 6/2812021 Sub Total/Average Certificate of Deposit 373 2.163 15,866,000.00 15,865,590.94 99.995325 16,212,432.58 12.18 -Negotiable 30% CorporateBonds 15% ...............,.a ........._.,�_._..,....,, m._..,. � n.._.a,....,....m,.._....a.,..:.,....,....._,�.,__.a.,..,,...._,.,......... ._..._,...... Apple Inc 2.25 037833BS8 146 2/23/2021 121272016 2.125 Moodys- S&P-AA+ 2,000,000.00 2,022,375.00 100.5 2,014,069.92 1.54 2/23/2021-21 Aal Apple Inc 2.35/11/2022 037833CQ1 588 5/11/2022 6726/2017 2.133 Moodys- 5&P-AA+ 2,000,000.00 2,021,152.54 100.770127 2,062,453.14 1.55 Berkshire Hathaway Inc 084670600 166 3/15/2021 6/1372018 2.654 Moodys- S&P-AA 1,000,000.00 993,377.78 98,8 1,007,222.12 0,76 2.2 3/15/2021 Aa2 Chevron Corp 2.498 166764BN9 519 3/3/2022 8/10/2017 2.101 Moodys- 3/312022 o dys 3/3/2022 S&P-AA- 2,000,000.00 2,056,188.11 101.72 2,058,458.76 1.56 COCO-COLA CO 191216BT6 27 10/27/2020 7713/2017 1.875 Moodys- S&P-AA- 1,000,000.00 1,003,958.33 100 1,001,157.41 0.77 1.875 10/27/2020 Aa3 IBM Credit LLC 2.2 44932HAC7 708 918/2022 10/3/2017 2.301 Moodys- S&P-A+ 1,000,000.00 996,827.76 99.53 1,038,366.59 0.76 9/8/2022 Al Microsoft 211/372020- 594918666 34 11/312020 11/6/2015 1.929 Moodys - 20 3$P-AAA 1,000,000.00 1,003,546.67 100.338 1,000,050.25 0.77 Pfizer Inc 2.2 717081DZ3 441 12/15/2021 7/1612018 2.944 Moodys- S&P-AA 1,000,000.00 977,984.44 97.6 1,023,109.01 0.75 12/1572021 At Procter&Gamble Cc 742718DY2 494 2/6/2022 7/16/2018 2.902 Moodys- S&P-AA- 1,000,000.00 990,022.22 97.98 1,028,533.07 0.75 2.3 2/6/2022 Aa3 Toyota Motor Credit 89236TEC5 708 9/872022 11/1/2017 2.301 Moodys- S&P-AA- 2,500,000.00 2,490,663.19 99.31 2,585,890.13 1.91 Corp 2.15 9/8/2022 Aa3 Toyota Motor Credit g9236TFN0 1,085 9/20/2023 2/28/2019 3.001 Moodys- S&P-AA- 1,000,000.00 1,034,141.67 101.9 1,084,732.30 0.78 Corp 3.45 9/20/2023 Aa3 Toyota Motor Credit 89236TDP7 468 1/1112022 7/1312017 2.200 Moodys S&P-AA- 1,000,000.00 1,017,172.28 101.702784 1,029,395.77 0.78 Crop 2.6 1/11/2022 Aa3 VISA Inc 2.15 92826CAG7 715 9/15/2022 1013/2017 2.101 Moodys 9/15/2022 Al S&P-A+ 1,000,000.00 1,003,615.32 100,230143 1,035,205.44 0,77 Walmarl Inc 1,9 931142EA7 76 12/15/2020 6/13/2018 2.622 MMoodys 1211512020 S&P-AA 1,000,000.00 994,897.22 98.26 1,003,425.18 0,75 Sub Total/Average 460 2.322 16,500,000.00 18,605,832.55 100.048426 18,972,069.09 14.20 Corporate Bonds 15% ._�. .. Am....e...-...__._.... -._.__....___...._ ._-._._..._. -._.___._... .. ..__......,......�......._,........_..... ._____. .. -.._.._.._.. ._ _..__.._.__-_..__.._ Municipal Securities 15%i 5% 13063DAD0 548 4/1/2022 4/27/2017 2.152 S&P-AA- 1,000,000.00 1,010,000.00 101 1,028,940.00 0.78 Page 14 of 17 YTM Days To Maturity Settlement @ Credit Credit Face Cast Value+ %of Description CUSIP/Ticker Maturity Date Date Cost Rating 1 Rating 2 Amount/Shares Accrued Interest Cost Price Market Value Portfolio California ST 2.367 Moodys- 411/2022 Aa3 California ST 2.625 13063DAC2 183 4/1/2021 4/27/2017 2.003 Moody' S&P-AA- 1,000,000.00 1,023,400.00 102.34 1,011,200.00 0,79 4/112021 Aa3 California State University 3.054 13077DFD9 762 11/1/2022 8/2/2018 3.054 Moodys- S&P-AA- 250,000.00 250,000.00 100 264,095.00 0.19 11/1/2022 Industry Calif Sales Tax 45656RDV1 458 1/112022 5/17/2017 2.451 Moody S&P-AA- 1,000,000.00 1,014,604.17 101.3 1,025,470.00 0.78 Rev 2.75 1/1/2022 Al Murrieta Redevelopment 62719PAX4 305 8/1/2021 90/18/2017 2.319 NR S&P-A 350,000.00 349,135.50 99.753 353,363.50 0.27 Agency 2.25 8/1/2021 Murrieta Redevelopment 62719PAY2 670 811/2022 10118!2017 2.559 NR S&P-A 250,000.00 249,345.00 99.738 256,192.50 0.19 Agency 2.5 8/1!2022 Santa Rasa CA REGL Resource Rev 2.2 802629AW5 305 8/1/2021 10/3/2017 2.001 Fitch-AA S&P-AA+ 980,000.00 989,489.67 100.73 994,082.60 0.76 8/1/2021 Santa Rosa CA REGL Resources Rev 2.4 802629AX3 670 8/1/2022 10/3/2017 2.202 Fitch-AA S&P-AA+ 500,000.00 505,800.00 100.9 516,930.00 0,39 8/1/2022 Sub Total/Average Municipal Securities 428 2.228 5,330,000.00 5,391,774.34 101.066505 5,450,273.60 4.13 15%/5% -_..._. .-._.,..._..r..-.. _. .. ....-..__._.-,-... _,-._.___... ..............-..v....__..-_..._._....._._._.___...-.__....�.-....-_-._....._ .._-_......_..,......_,..._...-.-_-._......___,._.-. ._... ......_._._. -._._...b.. .._._...,.._..,... US Agency Bonds/Notes 75% FHLB 1.3752118/2021 3130A7CV5 141 2/18!2021 414/2016 1.328 Moody' S&P-AA+ 1,000,000.00 1,003,956.94 100.22 1,004,691.15 0.77 Ass FHLB 2.14/26/2022-19 3130AB31.18 573 4/26/2022 4/26/2017 2.100 NR S&P-AA+ 4,000,000.00 4,000,000.00 100 4,121,886.96 3.07 FHLMC 2 7/2712022-18 3134GBWQ1 665 7/27/2022 7/2712017 2.042 �a�ys- S&P-AA+ 2,000,000.00 1,996,000.00 99.8 2,066,627.04 1.53 FHLMC 2.05 3134GBMB5 602 5/25/2022 5/25/2017 2.050 Moodys- S&P-AA+ 1,000,000.00 1,000,000.00 100 1,031,061.75 0.77 5/25/2022-18 Aaa FNMA 1.45/2512021- 3136G3U94 237 5/25/2021 8/25/2016 1.400 Moody' S&P-AA+ 1,850,000.00 1,850,000.00 100 1,865,179.81 1.42 17 Ass Sub Total/Average US Agency Bonds/ 488 1.873 9,850,000.00 9,849,956.94 99.981853 10,089,446.71 7.56 Notes 75% Total/Average 166 1.231 130,235,311.94 130,402,466.71 100.049027 131,413,533.92 100 Page 15 of 17 City of Tustin Transactions Summary Monthly Investment Transactions Group By:Action Portfolio/Report Group:All Portfolios Begin Date:06/30/2020,End Date:09/3012020 YTM @ Settlement Maturity Face Description CUSIP7rlcker Portfolio Name Cost Trade Date Date Date Amount/Shares Principal Price Interesi/Dividends Total Called American Express Credit Corp 0258MODX4 Fixed Income-Corporate 0000 8/14/2020 8/14/2020 91142020 2,000,000.00 2,000,000.00 0 21,666.67 2,021,666.67 2.6 9/14/2020-20 Bonds Automatic Data Processing2.25 063015AD5 Fixed Income-Corporate 0.000 87152020 8/152020 9!1512020 1,00 9,375.00 1,009,375.00 9/15/2020-20 Bonds 0,000.00 1,000,000.00 0 . BMO Halls Bank Step 05581 WNM3 Fixed Income-Certificate of 0.000 7/13/2020 711372020 4/1312022 248,000.00 248,000,00 0 0.00 248,000.00 4113/2022-17 Deposit Negotiable Spiritbank Bristow OK 1.9 848608DBB Fixed Income-Certificate of 8111/2021-18 Deposit Negotiable 0.000 77112020 7/11/2020 8111/2021 248,000.00 248,000.00 D 0.00 248,000.00 Sub Total/Average Called 3,496,000.00 3,496,000.00 31,041.67 3,527,041.67 Matured _._,...._._.....__,_.,..._-_... ._..,...-..e..-__,..._.�.....�-.,...�..w-... Bank of Deerfield 1.15 061785DP3 Fixed Income-Certificate of 0.000 727/2020 7127/2020 7/27/2020 248,000.00 248,000.00 0 0.00 248,000.00 7272020 Deposit Negotiable BMW Bank UT 2.258/212020 05580ACS1 Fixed income-Certificate of 0.000 821/2020 8/212020 812112020 248,000.00 248,000.00 0 0.00 248,000.00 Deposit Negotiable Capital One 2.3 8112/2020 14042E5M8 Fixed Income-Certificate of 0.000 8712/2020 8/122020 8!12/2020 248,000.00 248,000,00 0 0.00 248,000.00 Deposit Negotiable Financial Federal Bank 1.7 31749TAX5 Fixed Income-Certificate of 0.000 9/302020 9/30/2020 9/30/2020 248,000.DD 248,000.00 0 0.00 248,000.00 9/30/2020 Deposit Negotiable First Oklahoma Bank 1.7 3358576E7 Fixed Income-Certificate of 712712020 Deposit Negotiable 0.000 727/2020 7/272020 7727/2020 248,000.00 248,000.00 0 D.00 248,000.00 Southern State Bank AL 2.8 843879BT3 Fixed Income-Certificate of 9/282020 Deposit Negotiable 0.000 92812020 9/282020 9128/2020 249,000.00 249,000,00 D 0.00 249,000.00 Sub Total/Average Matured 1,489,000.00 1,489,000.00 0.00 1,489,000.00 Page 16 of 17 PUBLIC AGENCY RETIREMENT SERVICES PARS CITY OF TUSTIN Account Report for the Period PARS Post-Employment Benefits Trust 9/1/2020 to 9/30/2020 Matthew West City Manager City of Tustin 300 Centennial Way Tustin,CA 92780 Account Summary Balance as of Balance as of Source 9/12020 Contributions Earnings Expenses Distributions Transfers 9/30/2020 OPEB $2,289,621.51 $0.00 -$37,137.16 $1,042.82 $0.00 $0,00 $2,251,441,53 PENSION $6,532,507.02 $0.00 -$105,929.47 $2,975.01 $0.00 $0.00 $6,423,602.54 Totals $8,822,128.53 $0.00 -$143,066.63 $4,017.83 $0.00 $0.00 $8,675,044.07 Investment Selection Source OPEB City of Tustin-OPEB PENSION City of Tustin-Pension Investment Objective Source Individual account based on Moderate Index PLUS. The dual goals of the Moderate Strategy are growth of principal and income.It is expected that OPEB dividend and interest income will comprise a significant portion of total return,although growth through capital appreciation is equally important.The portfolio will be allocated between equity and fixed income investments. Individual account based on Moderate Index PLUS. The dual goals of the Moderate Strategy are growth of principal and income.It is expected that PENSION dividend and interest income will comprise a significant portion of total return,although growth through capital appreciation is equally important.The portfolio will be allocated between equity and fixed income investments. Investment Return Annualized Return Source 1-Mouth 3-Months 1-Year F-3-Years 5-Years 10-Year7s Plan's Inception Date OPEB -1.62% 4.04% 7.47% 6/26/2018 PENSION -1.62% 4.04% 7.47% 6/26/2018 Information as provided by US Bank,Trustee for PARS;Not FDIC Insured;No Bank Guarantee; May Lose Value Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees,which could reduce returns.Information is deemed reliable but may be subject to change. Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return. Account balances are inclusive of Trust Administration,Trustee and Investment Management fees Headquarters-4350 Von Kaman Ave.,Suite 100,Newport Beach,CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Page 17 of 17 HIGHMARK° CAPITAL MANAGEMENT PARS DIVERSIFIED PORTFOLIOS MODERATE Q2 2020 WHY THE PARS DIVERSIFIED INVESTMENT OBJECTIVE Efficient Frontier MODERATE PORTFOLIO? To provide current income and moderate capital appreciation. Capital Appreciation Comprehensive Investment Solution Balanced HighMark®Capital Management, Inc.'s(HighMark) It is expected that dividend and Moderate interest income will comprise a ' diversified investment portfolios are designed to Moderately Conservative balance return expectations with risk tolerance. significant portion of total return, 3 Key features include:sophisticated asset allocation although growth through capital Conservative important.equally appreciation is eqy p . and optimization techniques,four layers of appRisk(Standard Deviation) diversification (asset class,style, manager, and ASSET ALLOCATION -MODERATE PORTFOLIO security), access to rigorously screened,top tier money managers, flexible investment options, and Strategic Range Policy Tactical experienced investment management. Equity 40-60% 50% 48% Fixed Income 40-60% 45% 48% Rigorous Manager Due Diligence Cash 0-20% 5% 4% Our manager review committee utilizes a rigorous (Gross of Investment Management Fees,but Net of screening process that searches for investment ANNUALIZED TOTAL RETURNS Embedded Fund Fees) managers and styles that have not only produced HighMark Plus Composite (Active) Index Plus Composite (Passive) above-average returns within acceptable risk parameters, but have the resources and commitment Current Quarter* 2.73% Current Quarter* to continue to deliver these results. We have set high Blended Benchmark*,** 11.27% Blended Benchmark*,** 11.27% standards for our investment managers and funds. Year To Date* = -1.32% Year To Date* --0.94°/1 This is a highly specialized,time consuming Blended Benchmark*,** -0.85% Blended Benchmark*,** -0.85% approach dedicated to one goal: competitive and 1 Year 3.96% 1 Year 4.54% consistent performance. Blended Benchmark** 4.75% Blended Benchmark** 4.75% 3 Year 5.77% 3 Year 5.69% Flexible Investment Options Blended Benchmark** 6.03% Blended Benchmark** 6.03% In order to meet the unique needs of our clients, 5 Year 5.67% 5 Year 5.60% we offer access to flexible implementation strategies: HighMark Plus utilizes actively managed mutual Blended Benchmark** 5.91% Blended Benchmark** 5.91 funds while Index Plus utilizes index-based 10 Year 7.48% 10 Year 7.39% securities, including exchange-traded funds. Both Blended Benchmark** 7.59% Blended Benchmark** 7.59% *Returns less than one year are not annualized.**Breakdown for Blended Benchmark:From 10/1/2012-Present:26.5%S&P500, investment options leverage HighMark's active asset 5%Russell Mid Cap,7.5%Russell 2000,3.25%MSCI EM(net),6%MSCI EAFE(net),33.50%BBG Barclays US Agg,10%ICE allocation approach. BofA 1-3 Yr US Corp/Gov't,1.50%ICE BofA US High Yield Master II,1.75%Wilshire REIT,and 5%FTSE 1 Mth T-Bill.From pp 4/1/2007-9/30/2012:the blended benchmarkwas 43%S&P 500;2%Russell 2000,5%MSCI EAFE(net),15%ICE BofA 1-3 Year Corp./Govt,30%BBG Barclays US Agg,5%FTSE 1 Mth T-Bill.Prior to April 2007:the blended benchmark was 50%S&P 500, 15%ICE BofA 1-3Yr Corp/Gov,30%BBG Barclays US Agg,and 5%FTSE 1 Mth T-Bill. Risk Management ANNUAL RETURNS (Gross of Investment Management Fees,but Net of Embedded The portfolio is constructed to control risk through Fund Fees) four layers of diversification-asset classes(cash, HighMark Plus Composite (Active) Index Plus Composite (Passive) fixed income,equity), investment styles(large cap, 200 -22.88% 2008 8.14% small cap, international,value,growth), managers 2009 21.47% 2009 16.05% and securities. Disciplined mutual fund selection and 2010 12.42% 2010 1.77% monitoring process helps to drive return potential 2011 0.55% 2011 2.29% while reducing portfolio risk. 2012 12.25% 2012 10.91% 2013 13.06% 2013 12.79% 2014 4.84% 2014 5.72% 2015 0.14% 2015 -0.52% 2016 dL6.45% 2016 7.23% 2017 13.19% 2017 11.59% 2018 -4.03% 2018 -4.03% 2019 17.71% 2019 17.52% PORTFOLIO FACTS HighMark Plus(Active) Index Plus(Passive) Composite Inception Date 10/2004 Composite Inception Date 05/2006 No of Holdings in Portfolio 19 No of Holdings in Portfolio 12 HOLDINGS HIGHMARK CAPITAL MANAGEMENT HighMark Plus(Active) Index Plus(Passive) 350California Street Columbia Contrarian Core 13 iShares Core S&P 500 ETF Suite •00 Vanguard Growth&Income Adm iShares S&P 500 Value ETF Francisco,San 94104 Dodge&Cox Stock Fund iShares S&P 500 Growth ETF 800-582-4734 iShares S&P 500 Value ETF iShares Russell Mid-Cap ETF Harbor Capital Appreciation-Retirement Vanguard Real Estate ETF T. Rowe Price Growth Stock-I iShares Russell 2000 Value ETF ABOUT1 iShares Russell Mid-Cap ETF iShares Russell 2000 Growth ETF HighMark,Capital Management, Vanguard Real Estate ETF iShares MSCI EAFE ETF 100 organizations) Undiscovered Managers Behavioral Value-R6 Vanguard FTSE Emerging Markets ETF institutional money management experience billion in assets under management and$8.1 Victory RS Small Cap Growth-R6 Vanguard Short-Term Invest-Grade Adm assets •_ ong _ rm DFA Large Cap International Portfolio iShares Core U.S.Aggregate disciplined approach Dodge&Cox International Stock First American Government Obligations Z currently manages assets for a wide arrayof MFS International Growth-R6 ABOUT THE PORTFOLIO Hartford Schroders Emerging Markets Eq Andrew Brown,CFAO Vanguard Short-Term Invest-Grade Adm Senior Po rtfolio Manager Investment Experience:since 1994 PIMCO Total Return Fund-Inst HighMark Tenure:since 1997 PGIM Total Return Bond-R6 Holdings are subject to change at the Education: MBA,University of Southern California; DoubleLine Core Fixed Income-I discretion of the investment manager. BA,University of Southern California First American Government Obligations Z ° PortfolioSenior Investment Experience:since 11 STYLE2014 Real Estate Education: Colgate Large Cap Value 0.9% 5.9% Small Cap J.Keith Stribling, ,o 4.7% Cash - • Portfolio Manager 4.1 Intl Stocks • Tenure: - 1995 9.5% • • - • University Mid Cap Christiane Tsuda 3.3% Interm-Term BondSenior Manager 38.8% Investment 1987 - Large Cap Growth HighMark 5.9% Education: BA, International Christian University,Tokyo Anne Wirnmer, 0 SeniorPortfolio Investment Experience:since 1987 Large Cap Core . • Tenure: - 2007 18.1% • . •n: BA,University of • Barbara Short-Term Bond 8.8% Senior Portfolio Manager The performance records shown represent size-weighted composites of tax exempt accounts that meet the following criteria. investment - _ _ _ since Accounts are managed by HighMark Capital Advisors(HCA)with full investment authority according to the PARS Moderate 2002 active and passive objectives. . • Tenure: - 2017 The adviser to the PARS portfolios is US Bank,and HighMark serves as sub-adviser to US Bank to manage these portfolios. • . ,n: MBA,Arizona State - US Bank may charge clients as much as 0.60%annual management fee based on a sliding scale.US Bank pays HighMark University 60%of the annual management fee for assets sub-advised by HighMark under its sub-advisory agreement with US Bank. The 0.36%paid to HighMark,as well as other expenses that may be incurred in the management of the portfolio,will reduce the portfolio's returns.Assuming an investment for five years,a 5%annual total return,and an annual sub-advisory fee rate of 0.36%deducted from the assets at market at the end of each year,a$10 million initial value would grow to$12.53 million Asset Allocation Committee after fees(Net-of-Fees)and$12.76 million before fees(Gross-of-Fees).Gross returns are presented before management Number of Members: and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income.A client's return Years Experience: will be reduced by the advisory fees and other expenses it may incur as a client.Additional information regarding the firm'sAverage policies and procedures for calculating and reporting performance results is available upon request.Performance results are Average Tenure - calculated and presented in U.S.dollars and do not reflect the deduction of investment advisory fees,custody fees,or taxes but do reflect the deduction of trading expenses.Returns are calculated based on trade-date accounting. Blended benchmarks represent HighMark's strategic allocations between equity,fixed income,and cash and are rebalanced Manager Review Group monthly.Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the Number of Members: reinvestment of dividends and other earnings.An investor cannot invest directly in an index.The unmanaged S&P 500 Index is representative of the performance of large companies in the U.S.stock market.The MSCI EAFE Index is a free float- AverageYearsof •- - - adjusted market capitalization index designed to measure developed market equity performance,excluding the U.S.and Average Tenure - Canada.The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.The Russell Midcap Index measures the performance of the mid- cap segment of the U.S.equity universe.The Russell 2000 Index measures the performance of the small-cap segment of the U.S.equity universe.The ICE BofA US High Yield Master II Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S.domestic market.Wilshire REIT index measures U.S.publicly traded Real Estate Investment Trusts.The unmanaged Bloomberg Barclays U.S.Aggregate Bond Index is generally representative of the U.S.taxable bond market as a whole.The ICE BofA 1-3 Year U.S.Corporate&Government Index tracks the bond performance of the ICE BofA U.S.Corporate&Government Index,with a remaining term to final maturity less than 3 years.The unmanaged FTSE 1-Month Treasury Bill Index tracks the yield of the 1-month U.S.Treasury Bill. under ,,- include assets HighMark Capital Management,Inc. (HighMark),an SEC-registered investment adviser,is a wholly owned subsidiary of HighMark provides c• • , regular supervisory , MUFG Union Bank,N.A.(MUB).HighMark manages institutional separate account portfolios for a wide variety of for-profit and nonprofit organizations,public agencies,and public and private retirement plans.MUB,a subsidiary of MUFG Americas managementunder advisement Holdings Corporation,provides certain services to HighMark and is compensated for these services.Past performance does include assets for , provides certain investment not • ,- not guarantee future results.Individual account management and construction will vary depending on each client's investment needs and objectives.Investments employing HighMark strategies are NOT insured by the FDIC or by any advisory (including,but ' limited to, other Federal Government Agency,are NOT Bank deposits,are NOT guaranteed by the Bank or any Bank affiliate, research and strategies)for of parent c• ,. and MAY lose value,including possible loss of principal. MUIFG Union Bank,N.A.