PARS/City of San Leandro 115P
Client Management Team PFM Asset Management LLC
1 California Street
Suite 1000
San Francisco, CA 94111
1735 Market Street
43rd Floor
Philadelphia, PA 19103
Investment Performance Review
For the Quarter Ended March 31, 2024
Andrew Brown, CFA, Sr. Investment Strategist/Portfolio Manager Financial Markets & Investment Strategy Review
1 QUARTERLY MARKET SUMMARY
For the Quarter Ended March 31, 2024
Multi-Asset Class Management
QTD YTD 1 Year 3 Years 5 Years 7 Years 10 Years
DOMESTIC EQUITY
S&P 500 10.56% 10.56% 29.88% 11.49% 15.05% 14.09% 12.96% Russell 3000 Index 10.02% 10.02% 29.29% 9.78% 14.34% 13.45% 12.33% Russell 1000 Value Index 8.99% 8.99% 20.27% 8.11% 10.31% 9.16% 9.01% Russell 1000 Index 10.30% 10.30% 29.87% 10.45% 14.76% 13.85% 12.68% Russell 1000 Growth Index 11.41% 11.41% 39.00% 12.50% 18.52% 18.06% 15.98% Russell Midcap Index 8.60% 8.60% 22.35% 6.07% 11.10% 10.58% 9.95% Russell 2000 Value Index 2.90% 2.90% 18.75% 2.22% 8.17% 6.55% 6.87% Russell 2000 Index 5.18% 5.18% 19.71% -0.10% 8.10% 7.73% 7.58% Russell 2000 Growth Index 7.58% 7.58% 20.35% -2.68% 7.38% 8.40% 7.89%
INTERNATIONAL EQUITY
MSCI EAFE (Net) 5.78% 5.78% 15.32% 4.78% 7.33% 6.70% 4.80% MSCI AC World Index (Net) 8.20% 8.20% 23.22% 6.96% 10.92% 10.23% 8.66% MSCI AC World ex USA (Net) 4.69% 4.69% 13.26% 1.94% 5.97% 5.88% 4.25% MSCI AC World ex USA Small Cap (Net) 2.11% 2.11% 12.80% 0.38% 6.24% 5.74% 4.74% MSCI EM (Net) 2.37% 2.37% 8.15% -5.05% 2.22% 3.72% 2.95%
ALTERNATIVES
FTSE NAREIT Equity REIT Index -0.20% -0.20% 10.54% 4.14% 4.15% 5.08% 6.61% FTSE EPRA/NAREIT Developed Index -1.05% -1.05% 8.57% -0.19% 0.75% 3.08% 4.00% FTSE Global Core Infrastructure 50/50 Index (Net) 1.55% 1.55% 3.22% 2.91% 3.78% 5.27% 5.60% Bloomberg Commodity Index Total Return 2.19% 2.19% -0.56% 9.11% 6.38% 4.26% -1.56%
FIXED INCOME
Blmbg. U.S. Aggregate -0.78% -0.78% 1.70% -2.46% 0.36% 1.06% 1.54% Blmbg. U.S. Government/Credit -0.72% -0.72% 1.74% -2.35% 0.62% 1.27% 1.70% Blmbg. Intermed. U.S. Government/Credit -0.15% -0.15% 2.69% -1.06% 1.09% 1.43% 1.61% Blmbg. U.S. Treasury: 1-3 Year 0.28% 0.28% 2.94% 0.01% 1.13% 1.20% 1.06% ICE BofAML Global High Yield Constrained (USD) 1.47% 1.47% 11.09% 0.43% 3.12% 3.63% 3.52% Blmbg. Global Aggregate Ex USD -3.21% -3.21% -0.71% -6.53% -2.50% -0.82% -1.38% JPM EMBI Global Diversified 2.04% 2.04% 11.28% -1.39% 0.71% 1.71% 3.05%
CASH EQUIVALENT
90 Day U.S. Treasury Bill 1.30% 1.30% 5.35% 2.65% 2.06% 1.94% 1.41% Source: Investment Metrics. Returns are expressed as percentages. Please refer to the last page of this document for important disclosures relating to this material.
1.1 QUARTERLY MARKET SUMMARY
For the Quarter Ended March 31, 2024
Multi-Asset Class Management
Asset Class Our Q2 2024 Investment Outlook Comments
• Fed’s guidance of higher economic growth and moderating inflation a positive but recent uptick in inflation data warrants attention. Markets reacted positively to March Fed projections with S&P hitting all time high. • Rising valuations are supported by improving earnings growth expectations but any negative news could lead to a pullback. • Mid- and small-cap valuations are attractive and would benefit as investor sentiment/earnings growth expectations improve. Exposure to interest rate sensitive sectors such as regional banks remains a concern.
U.S. Equities
Large-Caps
Mid-Caps
Small-Caps
• International equities continue to trade at a discount to U.S. equities but slowing economic growth in Europe and China is a headwind. • EM equities trade at attractive valuations relative to developed market equities. We remain cautious on China and are closely monitoring the recent change in investor sentiment towards Chinese equities. • International small-caps provide exposure to foreign local economies, but uneven economic growth and geopolitical tensions leads us to be at neutral positioning.
• Overall, we maintain neutral exposure to international equities.
Non-U.S. Equities
Developed Markets
Emerging Markets
International Small-Caps
• The Fed’s recent guidance points towards soft-landing scenario with three expected rate cuts in 2024. Yields at short-end of the curve look attractive even as long-term yields fell back from the recent highs. We expect a further fall in yields as inflation continues to moderate. • Credit markets remain attractive due to strong corporate fundamentals.
We continue to seek diversified credit exposure and are closely watching signs for any distress in the corporate credit space.
Fixed Income
Long-Duration,
Interest Rate-Sensitive
Sectors
Credit-Sensitive Sectors
• Higher interest rates and rising foreclosure for office buildings are headwinds for private real estate returns. Public REITs have recovered from the lows in 2023. We expect this trend to continue helped by falling rates and economic soft landing.
• Private equity is facing headwinds from higher leverage costs and falling valuations. Debt strategies may benefit from banks’ tighter lending standards as long as default rates remain low.
• Increased infrastructure investment in the U.S. post the passing of Jobs Act and Chips Act a positive for infrastructure. Transition to renewable energy is another tailwind for both private and listed infrastructure while higher interest rates are headwinds.
Alternatives
Real Estate
Private Equity
Private Debt
Infrastructure
Current outlook Outlook one quarter ago Slightly Positive Positive
Slightly Neutral
Negative
Negative
Investment Strategy Overview
The view expressed within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution (March 31, 2024) and are subject to change.
1.2 QUARTERLY MARKET SUMMARY
For the Quarter Ended March 31, 2024
Multi-Asset Class Management
Inflation:
• Inflation continues to moderate but has proven to be
stickier than expected, predominantly in housing
and service sectors. Globally, inflation has
continued to moderate.
• Recent upside surprises in the U.S. warrants closer
attention but expect moderating trend to continue.
Economic Growth:
• U.S. economic growth is led by consumers and
supported by a robust labor market. Recent
recovery in manufacturing activity along with
continued strength in services a tailwind.
• Economic growth outside U.S. remain mixed with
slower growth projected in Eurozone.
Monetary Policy:
• Recent Fed guidance implies three rate cuts in 2024
and points to an economic soft landing but path of
rate cuts remains uncertain.
• Globally, central banks are nearing the start of rate cutting cycle in reaction to moderating inflation with
the Swiss central bank being the first to cut.
Labor Markets:
• The labor market remains strong, but we have seen
cooling conditions from the extreme levels of 2022.
• Strong wage increases reflect a competitive labor
market and is a key focus for monetary policy
moving forward.
Consumer Spending (U.S.):
• Consumer confidence reached a multi-year high
following strong wage growth, a resilient labor
market, and moderating inflation.
• Hiring, wage growth, and increased hours worked
have all played a role in boosting personal income
and spending and we expect consumer strength to
continue as labor markets remain healthy.
Financial Conditions:
• Financial conditions continue to ease as the Fed
pivot remains in play alongside strength in various
economic indicators.
• With interest rates remaining elevated, we continue
to focus on identifying pockets of stress within
financial markets.
Political Risks:
• Geopolitical risks continue to remain elevated.
U.S./China tensions, Russia/Ukraine war,
Israel/Hamas conflict, China’s moves in South
China Sea and Taiwan Strait further add to risks.
• Elections across the globe could also lead to shortterm volatility.
Valuations:
• U.S. equity and credit markets have experienced a
run up in valuations amid strong corporate
fundamentals and continued economic growth.
• International equities look attractive but continued
economic and geopolitical uncertainty is leading to
increased volatility.
Corporate Fundamentals:
• Earnings growth expectations are improving while
profit margins are stabilizing at pre-pandemic levels.
• Higher cash levels especially across S&P 500
companies, increasing stock buybacks and lower
credit default rates are positives.
Stance Unfavorable
to Risk Assets
Stance Favorable
to Risk Assets Current outlook Outlook one quarter ago Slightly Positive Positive
Slightly Neutral
Negative
Negative
Factors to Consider Over the Next 6-12 Months
Statements and opinions expressed about the next 6-12 months were developed based on our independent research with information obtained from Bloomberg. The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution (March 31, 2024) and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its accuracy, completeness, or suitability.
1.3 Plan Performance Summary - Pension
2 Allocation
Market
Value
($)
%
Performance(%)
1 Quarter
Year
To
Date
1 Year
3 Years
5 Years
7 Years
10 Years
Since
Inception
Inception
Date
Total Portfolio 26,614,540 100.00 4.04 4.04 13.63 N/A N/A N/A N/A 0.97 09/01/2021 Domestic Equity 10,685,460 40.15 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 Russell 3000 Index 10.02 10.02 29.29 9.78 14.34 13.45 12.33 8.81 Dodge & Cox Stock 1,166,097 4.38 8.50 8.50 25.59 10.37 13.57 11.80 11.08 8.38 02/01/2024 iShares S&P 500 Value ETF 521,760 1.96 8.01 8.01 25.36 11.98 13.06 11.19 10.44 7.70 02/01/2024 Columbia Contrarian Core Inst3 1,416,655 5.32 10.50 10.50 34.37 11.44 16.16 14.07 12.94 8.52 02/01/2024 Vanguard Growth & Income Adm 2,751,218 10.34 12.44 12.44 31.75 11.98 15.21 14.10 13.03 9.70 02/01/2024 Harbor Capital Appreciation Ret 784,306 2.95 13.75 13.75 47.91 9.32 17.22 17.99 N/A 9.12 02/01/2024 iShares S&P 500 Growth ETF 775,159 2.91 12.69 12.69 33.49 9.99 15.57 15.68 14.36 9.55 02/01/2024 S&P 500 10.56 10.56 29.88 11.49 15.05 14.09 12.96 8.73
iShares Russell Mid-Cap ETF 1,500,166 5.64 8.55 8.55 22.16 5.90 10.93 10.42 9.78 10.13 02/01/2024 Russell Midcap Index 8.60 8.60 22.35 6.07 11.10 10.58 9.95 10.17 Undisc Managers Behavioral Val R6 891,564 3.35 6.39 6.39 21.25 9.73 12.70 10.04 9.96 8.69 02/01/2024 Emerald Growth Institutional 878,535 3.30 5.83 5.83 21.02 -1.45 7.91 9.71 8.79 9.53 02/01/2024 Russell 2000 Index 5.18 5.18 19.71 -0.10 8.10 7.73 7.58 9.44 International Equity 2,511,605 9.44 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 MSCI AC World ex USA (Net) 4.69 4.69 13.26 1.94 5.97 5.88 4.25 5.74 Dodge & Cox International Stock 322,455 1.21 3.13 3.13 13.38 5.14 7.30 5.47 4.02 6.22 02/01/2024 MFS International Growth R6 327,769 1.23 4.85 4.85 10.36 3.70 8.02 9.21 7.08 5.66 02/01/2024 DFA Large Cap International I 983,162 3.69 5.73 5.73 15.46 5.34 7.86 7.10 5.04 6.49 02/01/2024 MSCI AC World ex USA (Net) 4.69 4.69 13.26 1.94 5.97 5.88 4.25 5.74 Hartford Schroders Emerging Mkts Eq 878,219 3.30 3.46 3.46 7.24 -6.93 2.72 4.27 N/A 8.32 02/01/2024 MSCI EM (net) 2.37 2.37 8.15 -5.05 2.22 3.72 2.95 7.35
Other Growth 393,657 1.48 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 Vanguard Real Estate ETF 393,657 1.48 -1.19 -1.19 8.50 1.72 3.68 4.64 6.20 3.95 02/01/2024 MSCI US REIT Index -0.32 -0.32 10.37 4.03 4.14 5.07 6.54 3.99 Asset Allocation & Performance
PARS/City of San Leandro 115P Pens As of March 31, 2024 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
2.1 Asset Allocation & Performance
PARS/City of San Leandro 115P Pens As of March 31, 2024 Allocation
Market
Value
($)
%
Performance(%)
1 Quarter
Year
To
Date
1 Year
3 Years
5 Years
7 Years
10 Years
Since
Inception
Inception
Date
Fixed Income 12,057,527 45.30 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 Blmbg. U.S. Aggregate -0.78 -0.78 1.70 -2.46 0.36 1.06 1.54 -0.50 Baird Aggregate Bond Inst 3,156,091 11.86 -0.45 -0.45 2.80 -2.17 0.81 1.45 1.97 0.95 03/01/2024 iShares Core US Aggregate Bond ETF 2,289,152 8.60 -0.75 -0.75 1.61 -2.48 0.32 1.02 1.50 0.84 03/01/2024 Blmbg. U.S. Aggregate -0.78 -0.78 1.70 -2.46 0.36 1.06 1.54 0.92 Dodge & Cox Income 2,992,638 11.24 -0.32 -0.32 4.09 -0.92 1.89 2.28 2.52 -0.24 02/01/2024 PGIM Total Return Bond R6 3,012,809 11.32 0.14 0.14 4.61 -1.68 0.96 1.84 2.43 -0.11 02/01/2024 Blmbg. U.S. Aggregate -0.78 -0.78 1.70 -2.46 0.36 1.06 1.54 -0.50 MainStay MacKay High Yield Corp Bond Fund 606,837 2.28 1.68 1.68 9.56 3.00 4.40 4.48 4.61 1.31 03/01/2024 ICE BofA High Yield Master II 1.51 1.51 11.04 2.21 4.03 4.25 4.36 1.19 Cash Equivalent 966,291 3.63 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 ICE BofA 3 Month U.S. T-Bill 1.29 1.29 5.24 2.58 2.02 1.90 1.38 0.86 First American Government Obligation - X 966,291 3.63 1.31 1.31 5.28 2.61 1.95 1.82 N/A 0.86 02/01/2024 ICE BofA 3 Month U.S. T-Bill 1.29 1.29 5.24 2.58 2.02 1.90 1.38 0.86 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
2.2 Performance(%)
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Total Portfolio 14.07 -13.38 N/A N/A N/A N/A N/A N/A N/A N/A Domestic Equity N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Russell 3000 Index 25.96 -19.21 25.66 20.89 31.02 -5.24 21.13 12.74 0.48 12.56 Dodge & Cox Stock 17.48 -7.22 31.73 7.16 24.83 -7.07 18.33 21.28 -4.49 10.40 iShares S&P 500 Value ETF 22.02 -5.41 24.67 1.24 31.71 -9.09 15.19 17.17 -3.24 12.14 Columbia Contrarian Core Inst3 32.21 -18.45 24.45 22.44 33.08 -8.81 21.89 8.77 3.25 13.14 Vanguard Growth & Income Adm 24.76 -17.11 29.11 18.08 29.77 -4.61 20.80 12.12 2.03 14.16 Harbor Capital Appreciation Ret 53.86 -37.67 15.74 54.56 33.39 -0.96 36.68 N/A N/A N/A iShares S&P 500 Growth ETF 29.80 -29.51 31.76 33.21 30.91 -0.17 27.20 6.74 5.33 14.67 S&P 500 26.29 -18.11 28.71 18.40 31.49 -4.38 21.83 11.96 1.38 13.69 iShares Russell Mid-Cap ETF 17.07 -17.43 22.38 16.91 30.31 -9.13 18.32 13.58 -2.57 13.03 Russell Midcap Index 17.23 -17.32 22.58 17.10 30.54 -9.06 18.52 13.80 -2.44 13.22 Undisc Managers Behavioral Val R6 14.57 -1.10 34.50 3.62 23.34 -15.20 13.53 20.97 3.52 5.83 Emerald Growth Institutional 19.06 -24.50 4.04 38.85 28.70 -11.57 28.11 10.89 1.24 7.19 Russell 2000 Index 16.93 -20.44 14.82 19.96 25.53 -11.01 14.65 21.31 -4.41 4.89 International Equity N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A MSCI AC World ex USA (Net) 15.62 -16.00 7.82 10.65 21.51 -14.20 27.19 4.50 -5.66 -3.87 Dodge & Cox International Stock 16.70 -6.78 11.03 2.10 22.78 -17.98 23.94 8.26 -11.35 0.08 MFS International Growth R6 14.96 -15.02 9.65 15.82 27.31 -8.79 32.58 2.79 0.40 -5.01 DFA Large Cap International I 17.87 -13.03 12.81 8.12 22.04 -14.14 25.37 3.16 -2.86 -5.24 MSCI AC World ex USA (Net) 15.62 -16.00 7.82 10.65 21.51 -14.20 27.19 4.50 -5.66 -3.87 Hartford Schroders Emerging Mkts Eq 9.00 -22.14 -4.93 23.78 22.32 -15.42 N/A N/A N/A N/A MSCI EM (net) 9.83 -20.09 -2.54 18.31 18.42 -14.57 37.28 11.19 -14.92 -2.19 Other Growth N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Vanguard Real Estate ETF 11.75 -26.20 40.38 -4.72 28.91 -5.95 4.95 8.53 2.37 30.29 MSCI US REIT Index 13.74 -24.51 43.06 -7.57 25.84 -4.57 5.07 8.60 2.52 30.38 Calendar Year Comparative Performance
PARS/City of San Leandro 115P Pens As of March 31, 2024 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
2.3 Calendar Year Comparative Performance
PARS/City of San Leandro 115P Pens As of March 31, 2024 Performance(%)
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Fixed Income N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Blmbg. U.S. Aggregate 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 2.65 0.55 5.97 Baird Aggregate Bond Inst 6.43 -13.35 -1.46 8.63 9.48 -0.30 4.20 3.52 0.55 6.89 iShares Core US Aggregate Bond ETF 5.59 -13.06 -1.67 7.42 8.68 -0.05 3.53 2.56 0.48 6.04 Blmbg. U.S. Aggregate 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 2.65 0.55 5.97 Dodge & Cox Income 7.70 -10.87 -0.91 9.45 9.73 -0.31 4.36 5.61 -0.59 5.48 PGIM Total Return Bond R6 7.78 -14.86 -1.15 8.10 11.14 -0.63 6.71 4.83 0.09 7.25 Blmbg. U.S. Aggregate 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 2.65 0.55 5.97 MainStay MacKay High Yield Corp Bond Fund 11.97 -7.81 5.35 5.28 13.03 -1.34 6.79 15.99 -1.44 1.75 ICE BofA High Yield Master II 13.46 -11.22 5.36 6.17 14.41 -2.27 7.48 17.49 -4.64 2.50 Cash Equivalent N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A ICE BofA 3 Month U.S. T-Bill 5.02 1.46 0.05 0.67 2.28 1.87 0.86 0.33 0.05 0.04 First American Government Obligation - X 5.00 1.54 0.03 0.40 2.12 1.74 0.79 N/A N/A N/A ICE BofA 3 Month U.S. T-Bill 5.02 1.46 0.05 0.67 2.28 1.87 0.86 0.33 0.05 0.04 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
2.4 QTR
Market Value
As of
01/01/2024
Net Flows Return On
Investment
Market Value
As of
03/31/2024
Total Portfolio 25,575,956 8,882 1,029,702 26,614,540
Account Reconciliation
PARS/City of San Leandro 115P Pens As of March 31, 2024
2.5 Plan Performance Summary - OPEB
3 Allocation
Market
Value
($)
%
Performance(%)
1 Quarter
Year
To
Date
1 Year
3 Years
5 Years
7 Years
10 Years
Since
Inception
Inception
Date
Total Portfolio 21,461,203 100.00 2.20 2.20 9.36 0.98 4.16 4.39 N/A 4.41 08/01/2015 Domestic Equity 5,120,985 23.86 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 Russell 3000 Index 10.02 10.02 29.29 9.78 14.34 13.45 12.33 8.81 Dodge & Cox Stock 573,350 2.67 8.50 8.50 25.59 10.37 13.57 11.80 11.08 8.38 02/01/2024 iShares S&P 500 Value ETF 255,743 1.19 8.01 8.01 25.36 11.98 13.06 11.19 10.44 7.70 02/01/2024 Columbia Contrarian Core Inst3 689,959 3.21 10.50 10.50 34.37 11.44 16.16 14.07 12.94 8.52 02/01/2024 Vanguard Growth & Income Adm 1,222,793 5.70 12.44 12.44 31.75 11.98 15.21 14.10 13.03 9.70 02/01/2024 Harbor Capital Appreciation Ret 380,241 1.77 13.75 13.75 47.91 9.32 17.22 17.99 N/A 9.12 02/01/2024 iShares S&P 500 Growth ETF 372,296 1.73 12.69 12.69 33.49 9.99 15.57 15.68 14.36 9.55 02/01/2024 S&P 500 10.56 10.56 29.88 11.49 15.05 14.09 12.96 8.73
iShares Russell Mid-Cap ETF 738,983 3.44 8.55 8.55 22.16 5.90 10.93 10.42 9.78 10.13 02/01/2024 Russell Midcap Index 8.60 8.60 22.35 6.07 11.10 10.58 9.95 10.17 Undisc Managers Behavioral Val R6 444,990 2.07 6.39 6.39 21.25 9.73 12.70 10.04 9.96 8.69 02/01/2024 Emerald Growth Institutional 442,630 2.06 5.83 5.83 21.02 -1.45 7.91 9.71 8.79 9.53 02/01/2024 Russell 2000 Index 5.18 5.18 19.71 -0.10 8.10 7.73 7.58 9.44 International Equity 1,313,233 6.12 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 MSCI AC World ex USA (Net) 4.69 4.69 13.26 1.94 5.97 5.88 4.25 5.74 Dodge & Cox International Stock 177,196 0.83 3.13 3.13 13.38 5.14 7.30 5.47 4.02 6.22 02/01/2024 MFS International Growth R6 180,025 0.84 4.85 4.85 10.36 3.70 8.02 9.21 7.08 5.66 02/01/2024 DFA Large Cap International I 513,746 2.39 5.73 5.73 15.46 5.34 7.86 7.10 5.04 6.49 02/01/2024 MSCI AC World ex USA (Net) 4.69 4.69 13.26 1.94 5.97 5.88 4.25 5.74 Hartford Schroders Emerging Mkts Eq 442,266 2.06 3.46 3.46 7.24 -6.93 2.72 4.27 N/A 8.32 02/01/2024 MSCI EM (net) 2.37 2.37 8.15 -5.05 2.22 3.72 2.95 7.35
Other Growth 187,575 0.87 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 Vanguard Real Estate ETF 187,575 0.87 -1.19 -1.19 8.50 1.72 3.68 4.64 6.20 3.95 02/01/2024 MSCI US REIT Index -0.32 -0.32 10.37 4.03 4.14 5.07 6.54 3.99 Asset Allocation & Performance
PARS/City of San Leandro 115P - OPEB As of March 31, 2024 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
3.1 Asset Allocation & Performance
PARS/City of San Leandro 115P - OPEB As of March 31, 2024 Allocation
Market
Value
($)
%
Performance(%)
1 Quarter
Year
To
Date
1 Year
3 Years
5 Years
7 Years
10 Years
Since
Inception
Inception
Date
Fixed Income 13,796,840 64.29 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 Blmbg. U.S. Aggregate -0.78 -0.78 1.70 -2.46 0.36 1.06 1.54 -0.50 Baird Aggregate Bond Inst 3,611,338 16.83 -0.45 -0.45 2.80 -2.17 0.81 1.45 1.97 0.95 03/01/2024 iShares Core US Aggregate Bond ETF 2,619,405 12.21 -0.75 -0.75 1.61 -2.48 0.32 1.02 1.50 0.84 03/01/2024 Blmbg. U.S. Aggregate -0.78 -0.78 1.70 -2.46 0.36 1.06 1.54 0.92 Dodge & Cox Income 3,424,349 15.96 -0.32 -0.32 4.09 -0.92 1.89 2.28 2.52 -0.24 02/01/2024 PGIM Total Return Bond R6 3,447,377 16.06 0.14 0.14 4.61 -1.68 0.96 1.84 2.43 -0.11 02/01/2024 Blmbg. U.S. Aggregate -0.78 -0.78 1.70 -2.46 0.36 1.06 1.54 -0.50 MainStay MacKay High Yield Corp Bond Fund 694,371 3.24 1.68 1.68 9.56 3.00 4.40 4.48 4.61 1.31 03/01/2024 ICE BofA High Yield Master II 1.51 1.51 11.04 2.21 4.03 4.25 4.36 1.19 Cash Equivalent 1,042,571 4.86 N/A N/A N/A N/A N/A N/A N/A N/A 02/01/2024 ICE BofA 3 Month U.S. T-Bill 1.29 1.29 5.24 2.58 2.02 1.90 1.38 0.86 First American Government Obligation - X 1,042,571 4.86 1.31 1.31 5.28 2.61 1.95 1.82 N/A 0.86 02/01/2024 ICE BofA 3 Month U.S. T-Bill 1.29 1.29 5.24 2.58 2.02 1.90 1.38 0.86 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
3.2 Performance(%)
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Total Portfolio 11.06 -13.53 5.22 10.79 13.68 -2.60 9.43 4.75 N/A N/A Domestic Equity N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Russell 3000 Index 25.96 -19.21 25.66 20.89 31.02 -5.24 21.13 12.74 0.48 12.56 Dodge & Cox Stock 17.48 -7.22 31.73 7.16 24.83 -7.07 18.33 21.28 -4.49 10.40 iShares S&P 500 Value ETF 22.02 -5.41 24.67 1.24 31.71 -9.09 15.19 17.17 -3.24 12.14 Columbia Contrarian Core Inst3 32.21 -18.45 24.45 22.44 33.08 -8.81 21.89 8.77 3.25 13.14 Vanguard Growth & Income Adm 24.76 -17.11 29.11 18.08 29.77 -4.61 20.80 12.12 2.03 14.16 Harbor Capital Appreciation Ret 53.86 -37.67 15.74 54.56 33.39 -0.96 36.68 N/A N/A N/A iShares S&P 500 Growth ETF 29.80 -29.51 31.76 33.21 30.91 -0.17 27.20 6.74 5.33 14.67 S&P 500 26.29 -18.11 28.71 18.40 31.49 -4.38 21.83 11.96 1.38 13.69 iShares Russell Mid-Cap ETF 17.07 -17.43 22.38 16.91 30.31 -9.13 18.32 13.58 -2.57 13.03 Russell Midcap Index 17.23 -17.32 22.58 17.10 30.54 -9.06 18.52 13.80 -2.44 13.22 Undisc Managers Behavioral Val R6 14.57 -1.10 34.50 3.62 23.34 -15.20 13.53 20.97 3.52 5.83 Emerald Growth Institutional 19.06 -24.50 4.04 38.85 28.70 -11.57 28.11 10.89 1.24 7.19 Russell 2000 Index 16.93 -20.44 14.82 19.96 25.53 -11.01 14.65 21.31 -4.41 4.89 International Equity N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A MSCI AC World ex USA (Net) 15.62 -16.00 7.82 10.65 21.51 -14.20 27.19 4.50 -5.66 -3.87 Dodge & Cox International Stock 16.70 -6.78 11.03 2.10 22.78 -17.98 23.94 8.26 -11.35 0.08 MFS International Growth R6 14.96 -15.02 9.65 15.82 27.31 -8.79 32.58 2.79 0.40 -5.01 DFA Large Cap International I 17.87 -13.03 12.81 8.12 22.04 -14.14 25.37 3.16 -2.86 -5.24 MSCI AC World ex USA (Net) 15.62 -16.00 7.82 10.65 21.51 -14.20 27.19 4.50 -5.66 -3.87 Hartford Schroders Emerging Mkts Eq 9.00 -22.14 -4.93 23.78 22.32 -15.42 N/A N/A N/A N/A MSCI EM (net) 9.83 -20.09 -2.54 18.31 18.42 -14.57 37.28 11.19 -14.92 -2.19 Other Growth N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Vanguard Real Estate ETF 11.75 -26.20 40.38 -4.72 28.91 -5.95 4.95 8.53 2.37 30.29 MSCI US REIT Index 13.74 -24.51 43.06 -7.57 25.84 -4.57 5.07 8.60 2.52 30.38 Calendar Year Comparative Performance
PARS/City of San Leandro 115P - OPEB As of March 31, 2024 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
3.3 Calendar Year Comparative Performance
PARS/City of San Leandro 115P - OPEB As of March 31, 2024 Performance(%)
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Fixed Income N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Blmbg. U.S. Aggregate 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 2.65 0.55 5.97 Baird Aggregate Bond Inst 6.43 -13.35 -1.46 8.63 9.48 -0.30 4.20 3.52 0.55 6.89 iShares Core US Aggregate Bond ETF 5.59 -13.06 -1.67 7.42 8.68 -0.05 3.53 2.56 0.48 6.04 Blmbg. U.S. Aggregate 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 2.65 0.55 5.97 Dodge & Cox Income 7.70 -10.87 -0.91 9.45 9.73 -0.31 4.36 5.61 -0.59 5.48 PGIM Total Return Bond R6 7.78 -14.86 -1.15 8.10 11.14 -0.63 6.71 4.83 0.09 7.25 Blmbg. U.S. Aggregate 5.53 -13.01 -1.55 7.51 8.72 0.01 3.54 2.65 0.55 5.97 MainStay MacKay High Yield Corp Bond Fund 11.97 -7.81 5.35 5.28 13.03 -1.34 6.79 15.99 -1.44 1.75 ICE BofA High Yield Master II 13.46 -11.22 5.36 6.17 14.41 -2.27 7.48 17.49 -4.64 2.50 Cash Equivalent N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A ICE BofA 3 Month U.S. T-Bill 5.02 1.46 0.05 0.67 2.28 1.87 0.86 0.33 0.05 0.04 First American Government Obligation - X 5.00 1.54 0.03 0.40 2.12 1.74 0.79 N/A N/A N/A ICE BofA 3 Month U.S. T-Bill 5.02 1.46 0.05 0.67 2.28 1.87 0.86 0.33 0.05 0.04 Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.
3.4 QTR
Market Value
As of
01/01/2024
Net Flows Return On
Investment
Market Value
As of
03/31/2024
Total Portfolio 20,987,330 12,730 461,143 21,461,203
Account Reconciliation
PARS/City of San Leandro 115P - OPEB As of March 31, 2024
3.5 This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation, as it was prepared without regard to any specific objectives or financial circumstances.
Investment advisory services are provided by PFM Asset Management LLC ("PFMAM"), an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. ("USBAM"). USBAM is a subsidiary of U.S. Bank National Association ("U.S. Bank"). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request.
PFMAM professionals have exercised reasonable professional care in the preparation of this performance report. Information in this report is obtained from sources external to PFMAM and is generally believed to be reliable and available to the public; however, we cannot guarantee its accuracy, completeness or suitability. We rely on the client's custodian for security holdings and market values. Transaction dates reported by the custodian may differ from money manager statements. While efforts are made to ensure the data contained herein is accurate and complete, we disclaim all responsibility for any errors that may occur. References to particular issuers are for illustrative purposes only and are not intended to be recommendations or advice regarding such issuers. Fixed income manager and index characteristics are gathered from external sources. When average credit quality is not available, it is estimated by taking the market value weights of individual credit tiers on the portion of the strategy rated by a NRSRO.
It is not possible to invest directly in an index. The index returns shown throughout this material do not represent the results of actual trading of investor assets. Third-party providers maintain the indices shown and calculate the index levels and performance shown or discussed. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be lower than the performance shown.
The views expressed within this material constitute the perspective and judgment of PFMAM at the time of distribution and are subject to change.
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Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Opinions and data presented are not necessarily indicative of future events or expected performance.
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