City of San Leandro
Fourth Quarter 2021
Presented by
Randall Yurchak, CFA
Investment objective:
▪ OPEB: Moderate Conservative Highmark Plus (Active)
▪ Pension: Moderate Highmark Plus (Active)
Asset Allocation
▪ OPEB: 31.1% stocks (20-40% range), 66.8% bonds (50-80% range), 2.1% cash (0-20% range) ▪ Pension: 51.7% stocks (40-60% range), 45.9% bonds (40-60% range), 2.4% cash (0-20% range) Performance (as of 12-31-2021; net fund fees, gross investment management fees):
OPEB Pension
▪ 3 month: 1.66% 2.89%
▪ 1-year: 5.22%
▪ 3-year: 9.84%
▪ 5-year: 7.15%
▪ 10-year: 6.30%
▪ Inception (7/09, 9/21): 6.60% -.28%
▪ Bonds: Range-bound bond yields suggests inflation possibly transitory and recent price increases may subside going forward. ▪ Stocks: Equities higher given easy monetary policies and expected economic improvement for 2022. ▪ Domestic markets: Large Cap outperformed Small Cap as slowing growth expectations impacted higher-risk assets. ▪ International: International underperformed domestic as vaccination roll-out and economic growth lagged the US. 12-Month Changes
▪ Stocks: modestly overweight; Bonds: modestly overweight; Cash: underweight Outlook 2022
▪ Corporate profit growth expected to continue with S&P 500 earnings +8% FY22 est. vs. +65% FY21 est. ▪ Risks in flattening yield curve, higher inflation near-term, and/or growth prompting faster-than-expected Fed tightening ▪ Potential tax law changes may cause volatility
▪ Geopolitical uncertainty: China, Middle East, Russia
DISCUSSION HIGHLIGHTS – City of San Leandro
City of San Leandro 2
City of San Leandro
*Account Inception: 7/1/2009, Initial Contribution received June 2009.
Aggregate is composed of account XXXXXX9203, PARS/PRHCP MOD CONSERV HM PLUS, from 07/01/2009 until 08/31/2015, then of its own proprietary account XXXXXX0400, PARS/CITY OF SAN LEANDRO, from 09/01/2015 until 6/30/2021, and then invested into a new proprietary account XXXXXX5601, PARS/CITY OF SAN LEANDRO 115P – OPEB, from 7/1/2021 and onwards.. Returns are gross of account level investment advisory fees and net of any fees, including fees to manage mutual fund or exchange traded fund holdings. 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. 3 3 Months
Year
to Date
(1 Year) 3 Years 5 Years 10 Years
Inception
to Date
07/01/2009
Cash Equivalents .00 .02 .82 .98 .52 .45
Lipper Money Market Funds Index .00 .00 .79 .93 .48 .39 Total Fixed Income -.29 -.82 4.77 3.62 3.21 4.01
Bloomberg US Aggregate Bd Index .01 -1.54 4.79 3.57 2.90 3.78 Total Equities 6.18 19.62 21.86 15.35 13.51 13.56
Large Cap Funds 8.28 26.41 25.50 18.19 16.33 15.52
S&P 500 Composite Index 11.03 28.71 26.07 18.47 16.55 16.38 Mid Cap Funds 6.48 22.73 23.13 14.95 13.37
Russell Midcap Index 6.44 22.58 23.29 15.10 14.91 15.91 Small Cap Funds 3.34 10.65 19.86 14.24 14.75 16.10
Russell 2000 Index 2.14 14.82 20.02 12.02 13.23 14.13
International Equities 1.64 6.22 14.53 10.55 7.21 7.37
MSCI EAFE Index 2.69 11.26 13.54 9.55 8.03 7.61
MSCI EM Free Index -1.31 -2.54 10.94 9.87 5.49 6.40
RR: REITS 14.99 39.65 19.82 11.23
Wilshire REIT Index 17.14 46.18 19.19 10.92 11.47 15.64 Total Managed Portfolio 1.66 5.22 9.84 7.15 6.30 6.60
Selected Period Performance
City of San Leandro OPEB Plan
Period Ending: 12/31/2021
Asset Allocation
As of December 31, 2021
City of San Leandro 4
Current Asset Allocation Investment Vehicle
Equity 31.05% Range: 20%-40% 6,833,640
Large Cap Core 3.14% COFYX Columbia Contrarian Core Inst3 692,002
5.14% VGIAX Vanguard Growth & Income Adm 1,130,221
Large Cap Value 2.76% DODGX Dodge & Cox Stock Fund 607,734
1.30% IVE iShares S&P 500 Value ETF 287,103
Large Cap Growth 1.76% HNACX Harbor Capital Appreciation Retirement 388,206
1.89% PRUFX T. Rowe Price Growth Stock Fund I 416,335
Mid Cap Core 2.66% IWR iShares Russell Mid-Cap ETF 584,473 Small Cap Value 2.84% UBVFX Undiscovered Managers Behavioral Val R6 624,147 Small Cap Growth 2.44% RSEJX Victory RS Small Cap Growth R6 537,061 International Core 2.09% DFALX DFA Large Cap International I 460,246 International Value 0.96% DODFX Dodge & Cox International Stock Fund 212,023 International Growth 0.96% MGRDX MFS® International Growth R6 211,093 Emerging Markets 2.01% HHHFX Hartford Schroders Emerging Mkts Eq F 442,740 Real Estate 1.09% VNQ Vanguard Real Estate ETF 240,257
Fixed Income 66.81% Range: 50%-80% 14,701,875
High Yield 2.67% PHIYX PIMCO High Yield Instl 586,688
Short-Term 11.61% VFSUX Vanguard Short-Term Investment-Grade Adm 2,554,540 Intermediate-Term 17.49% DBLFX DoubleLine Core Fixed Income I 3,849,533
17.58% PTTRX PIMCO Total Return Instl Fund 3,868,754
17.46% PTRQX Prudential Total Return Bond Q 3,842,360
Cash 2.14% Range: 0%-20% 470,122
2.14% FGZXX First American Government Oblig Z 470,122
TOTAL 100.00% $22,005,637
City of San Leandro
Performance Inception: 9/01/2021
Returns are gross of account level investment advisory fees and net of any fees, including fees to manage mutual fund or exchange traded fund holdings. 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. 5 3 Months
Since
Inception
(4 Months)
Cash Equivalents .00 .01
Lipper Money Market Funds Index .00 .00
Total Fixed Income -.37 -1.20
Bloomberg US Aggregate Bd Index .01 -.85
Total Equities 6.23 .81
Large Cap Funds 8.30 2.95
S&P 500 Composite Index 11.03 5.86
Mid Cap Funds 6.74 1.39
Russell Midcap Index 6.44 2.05
Small Cap Funds 3.19 -2.96
Russell 2000 Index 2.14 -.87
International Equities 1.54 -3.49
MSCI EAFE Index 2.69 -.29
MSCI EM Free Index -1.31 -5.23
RR: REITS 14.93 6.61
Wilshire REIT Index 17.14 11.16
Total Managed Portfolio 2.89 -.28
Selected Period Performance
PARS/CITY OF SAN LEANDRO 115P PENS
Account XXXXXX5600
Period Ending: 12/31/2021
Asset Allocation
As of December 31, 2021
City of San Leandro 6
Current Asset Allocation Investment Vehicle
Equity 51.74% Range: 40%-60% 2,338,097
Large Cap Core 5.15% COFYX Columbia Contrarian Core Inst3 232,522
9.81% VGIAX Vanguard Growth & Income Adm 443,062
Large Cap Value 4.58% DODGX Dodge & Cox Stock Fund 207,087
2.09% IVE iShares S&P 500 Value ETF 94,448
Large Cap Growth 2.89% HNACX Harbor Capital Appreciation Retirement 130,657
2.89% PRUFX T. Rowe Price Growth Stock Fund I 130,765
Mid Cap Core 4.18% IWR iShares Russell Mid-Cap ETF 188,848 Small Cap Value 4.60% UBVFX Undiscovered Managers Behavioral Val R6 207,734 Small Cap Growth 4.53% RSEJX Victory RS Small Cap Growth R6 204,763 International Core 3.17% DFALX DFA Large Cap International I 143,234 International Value 1.42% DODFX Dodge & Cox International Stock Fund 63,992 International Growth 1.42% MGRDX MFS® International Growth R6 64,254 Emerging Markets 3.24% HHHFX Hartford Schroders Emerging Mkts Eq F 146,451 Real Estate 1.78% VNQ Vanguard Real Estate ETF 80,279
Fixed Income 45.89% Range: 40%-60% 2,073,860
High Yield 2.11% PHIYX PIMCO High Yield Instl 95,552
Short-Term 8.33% VFSUX Vanguard Short-Term Investment-Grade Adm 376,573 Intermediate-Term 11.81% DBLFX DoubleLine Core Fixed Income I 533,464
11.81% PTTRX PIMCO Total Return Instl Fund 533,714
11.83% PTRQX Prudential Total Return Bond Q 534,558
Cash 2.36% Range: 0%-20% 106,753
2.36% FGZXX First American Government Oblig Z 106,753
TOTAL 100.00% $4,518,711
City of San Leandro 7
1-Month 3-Month Year-to- 1-Year 3-Year 5-Year 10-Year
Fund Name Return Return Date Return Return Return Return Columbia Contrarian Core Inst3 4.96 8.34 24.45 24.45 26.57 17.65 16.55 Vanguard Growth & Income Adm 4.57 11.43 29.11 29.11 25.54 17.92 16.55 Dodge & Cox Stock 5.51 5.85 31.73 31.73 20.78 14.14 15.57 iShares S&P 500 Value ETF 7.02 8.28 24.67 24.67 18.46 11.72 13.10 Harbor Capital Appreciation Retirement -2.64 5.02 15.74 15.74 33.63 26.43 20.04 T. Rowe Price Growth Stock I -0.88 4.77 20.18 20.18 29.23 23.41 19.24 S&P 500 TR USD 4.48 11.03 28.71 28.71 26.07 18.47 16.55 iShares Russell Mid-Cap ETF 4.07 6.40 22.38 22.38 23.08 14.92 14.73 Russell Mid Cap TR USD 4.08 6.44 22.58 22.58 23.29 15.10 14.91 Undiscovered Managers Behavioral Val R6 5.57 7.31 34.50 34.50 19.79 10.60 14.08 Russell 2000 Value TR USD 4.08 4.36 28.27 28.27 17.99 9.07 12.03 Victory RS Small Cap Growth R6 -0.27 -0.55 -10.74 -10.74 19.55 16.42 15.00 Russell 2000 Growth TR USD 0.44 0.01 2.83 2.83 21.17 14.53 14.14 Dodge & Cox International Stock 5.11 2.40 11.03 11.03 11.65 7.19 7.58 DFA Large Cap International I 4.84 3.32 12.81 12.81 14.18 9.88 8.02 MFS International Growth R6 4.05 4.94 9.65 9.65 17.37 14.35 10.09 MSCI EAFE NR USD 5.12 2.69 11.26 11.26 13.54 9.55 8.03
Hartford Schroders Emerging Mkts Eq F 1.19 -2.93 -4.93 -4.93 12.91 11.41 6.50 MSCI EM NR USD 1.88 -1.31 -2.54 -2.54 10.94 9.87 5.49
Source: SEI Investments, Morningstar Investments
CITY OF SAN LEANDRO
For Period Ending December 31, 2021
LARGE CAP EQUITY FUNDS
MID CAP EQUITY FUNDS
SMALL CAP EQUITY FUNDS
INTERNATIONAL EQUITY FUNDS
Returns less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from sources believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value.
City of San Leandro 8
1-Month 3-Month Year-to- 1-Year 3-Year 5-Year 10-Year
Fund Name Return Return Date Return Return Return Return Vanguard Real Estate ETF 9.70 14.89 40.38 40.38 19.91 11.22 11.50 PIMCO Total Return Instl 0.18 0.16 -0.61 -0.61 5.42 4.20 3.70 PGIM Total Return Bond R6 0.03 0.29 -1.16 -1.16 5.89 4.71 4.44 Vanguard Short-Term Investment-Grade Adm 0.04 -0.69 -0.33 -0.33 3.55 2.74 2.52 DoubleLine Core Fixed Income I -0.13 -0.23 -0.34 -0.34 4.36 3.53 3.59 Bloomberg US Agg Bond TR USD -0.26 0.01 -1.54 -1.54 4.79 3.57 2.90 PIMCO High Yield Instl 2.06 0.68 4.05 4.05 8.00 5.62 6.17 ICE BofA US High Yield Mstr II Index 1.88 0.66 5.36 5.36 8.57 6.10 6.76 Source: SEI Investments, Morningstar Investments
CITY OF SAN LEANDRO
For Period Ending December 31, 2021
REAL ESTATE FUNDS
BOND FUNDS
Returns less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from sources believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value.