Att C - City of San Pablo - PARS Presentation — San Pablo City Council, December 13, 2023

City of san Pablo ▎ 0
City of san Pablo
PARS 115 Trust – Pension Rate Stabilization Program (PRSP) December 13, 2023

City of san Pablo ▎ 1
Contacts
Rachael Sanders, CEBS
Vice President, Consulting
(800) 540-6369 x121
[email protected]
Ryan Nicasio , CEBS
Senior Vice President
(800) 540-6369 x134
[email protected]
City of san Pablo ▎ 2
Pars 115 Trust Team
Trust Administrator & Consultant
39 Years of Experience
(1984-2023)
2,000+
Plans under
Administration
1,000+
Public Agency
Clients
$6.9B
Assets under
Administration
Investment Manager
• Investment sub-advisor to trustee U.S. Bank
• Investment policy assistance
• Uses open architecture
• Active and passive platform options
• Customized portfolios (with minimum asset level)
104
Years of Experience
(1919-2023)
$8.7B
Assets under
Management &
Advisement
Trustee
• 5th largest commercial bank and one of the
nation’s largest trustees for Section 115 trusts
• Safeguard plan assets
• Oversight protection as plan fiduciary
• Custodian of assets
160
Years of Experience
(1863-2023)
$9.5 T
Assets under
Administration
500+
115 Trust Clients
• Serves as record-keeper, consultant,
and central point of contact
• Sub-trust accounting
• Coordinates all agency services
• Monitors plan compliance
(IRS/GASB/State Government Code)
• Processes contributions/disbursements
• Hands-on, dedicated support teams
500 K+
Plan Participants
City of san Pablo ▎ 3
Subaccounts
OPEB and Pension assets are
individually sub-accounted,
and can be divided by dept.,
bargaining group, or cost center
Assets in the PARS Section 115
Combination Trust can be used
to address unfunded liabilities.

Financial Stability
Allows separate investment
strategies for OPEB and
Pension subaccounts.

Flexible Investing
OPEB and Pension assets
aggregate and reach lower fees
on tiered schedule sooner –
saving money!
Economies-of-ScaleAnytime Access
Trust funds are available
anytime; OPEB for OPEB
and Pension for Pension.

No set-up costs, no minimum
annual contribution amounts,
and no fees until assets are added.

No Set Up Cost or Minimums
Retiree Medical Benefits
Prefund OPEB GASB 75
OPEB
Reimburse agency; or
Pay benefits provider
Pension Rate Stabilization Program
Prefund Pension (PRSP) GASB 68
Pension
Reimburse agency; or
Pay retirement system
Assets can be used to: Assets can be used to:
prefund
either or both
General Fund
PARS IRS -Approved Section 115 Trust
City of san Pablo ▎ 4
Sampling of pars 115 Trust pension clients (308):

COUNTIES
Napa
San Joaquin
Solano
Yolo
Updated December 2023

CITIES & TOWNS
Alameda
Benicia
Brisbane
Burlingame
Colma
Daly City
Dublin
El Cerrito
Emeryville
Fairfax
Fairfield
Hercules
Los Altos Hills
Moraga
Napa
Novato
Oakley
Pacifica
Palo Alto
Piedmont
Pinole
Pittsburg
Pleasant Hill
Pleasanton
Redwood City
Richmond
Rohnert Park
Ross
San Anselmo
San Leandro
San Ramon
Sausalito
Tiburon
Union City
Vallejo
Yountville
Alisal Union SD
Cotati-Rohnert Park USD
Marin CCD
Central Contra Costa Sanitary District
Central Contra Costa Transit Authority
Delta Diablo (Sanitation District)
East Bay Regional Park District
Greater Vallejo Recreation District
Metropolitan Transportation Commission
Mid-Peninsula Water District
Moraga-Orinda Fire Protection District
Municipal Pooling Authority
Napa County Mosquito Abatement District
Novato Sanitary District
San Mateo Mosquito and Vector Control District
Southern Marin Fire Protection District
Union Sanitary District
West Bay Sanitary District
West County Wastewater District
Zone 7 Water District
OTHER REGIONAL CLIENTS:

City of san Pablo ▎ 5
• Since 2015, GASB 68
has required disclosing
Net Pension Liability on financial
statements as a line item on the
balance sheet
• Before the concept of pension
prefunding, the only way to
reduce retirement system
unfunded liabilities was to send
additional contributions in
excess of annual required
employer contributions
• Pension trust prefunding
assets can be transferred to
the retirement system at the
Agency’s direction, which can
help offset future rate increases
(i.e., pension rate stabilization).

Background – Pension
CalPERS Changes
CalPERS has announced changes directly
affecting unfunded liability amounts and
employer contributions:

Lowering of Discount Rate 1
CalPERS lowered the
discount rate from 7.0% to 6.8%.

The impact is reflected in the
June 30, 2021 valuation reports.

Shortened Amortization Period 2
New actuarial liabilities are
amortized over 20 years instead of
30, increasing required annual
employer contribution amounts*

7.0%

6.8%
30 years
20 years
2 5-year ramp up in payments beginning
FY 15-16 with full impact in FY 19/20.
1 Contributions from policy changes beginning
FY 23-24.

City of san Pablo ▎ 6
Combined Miscellaneous
& Safety Groups *
Valuation as of
June 30, 2021
Valuation as of
June 30, 2022 Change
Actuarial Liability $182.2 M $192.2 M 5.5% ↑
Assets $144.7 M $131.9 M 8.8% ↓
Unfunded Liability $37.5 M $60.4 M 60.9% ↑
Funded Ratio 79.4% 68.6% 13.6% ↓
Employer Contribution Amount $6.9 M $7.2 M 3.8% ↑(FY 22-23) (FY 23-24) Employer Contribution Amount – Projected * --- $10.1 M 40.3% ↑(FY 29-30) Pension Funding Status
As of June 30, 2022, City of San Pablo’s CalPERS pension plan is funded as follows:
* Data through 2029-30 from City’s latest CalPERS actuarial valuation.

City of san Pablo ▎ 7
Why Prefund Pension Obligations?
Complete Local Control over Assets
Agency has complete control over assets, including contributions, disbursements and the timing, amount, and risk tolerance level of investments

1. Pension Rate Stabilization
Assets can be transferred to the retirement system at the City’s direction, potentially reducing/eliminating large fluctuations in employer contribution amounts

2. Rainy Day Fund
Emergency source of funds when employer revenues are strained in difficult budgetary or economic times

3. Diversification
Allows for investment flexibility and offers the potential for assets to earn greater returns than the general fund; spread the risk vs. sending additional money to CalPERS

4. City of san Pablo ▎ 8
• Agency maintains oversight of the
investment manager and the portfolio’s
risk tolerance level
• Investment restrictions that apply to the
general fund (CA Government Code 53601)
are not applicable to assets held in
The PARS Section 115 Irrevocable Trust
• Assets held in The PARS Section 115
Irrevocable Trust can be invested per
Government Code Sections 53216 (Pension)
and 53620 (OPEB)
• Investments can be diversified and invested
in a prudent fashion
• Investments can be tailored to the City’s unique demographics and needs • Increased risk diversification
Investment Flexibility
Diversified Investing
Assets held in The PARS Section
115 Irrevocable Trust can be
diversely invested in a prudent
fashion per Government Code
Sections 53216 (Pension)
and 53620 (OPEB).

GOV § 53216 (Pension)
GOV § 53620 (OPEB)

City of san Pablo ▎ 9
Investment Returns Comparison
Equity (%) 1 Year 3 Years 5 Years 10 Years 30-Year
Expected Returns
HighMark Capital Management – Active Portfolios
Cap. Appreciation 75% 12.95% 4.96% 5.24% 6.84% 7.12%
Balanced 60% 10.59% 3.28% 4.39% 5.76% 6.58%
Moderate 50% 9.22% 2.11% 3.84% 5.06% 6.18%
Mod. Conservative 30% 6.24% -0.27% 2.50% 3.56% 5.31%
Conservative 15% 3.88% -2.07% 1.53% 2.44% 4.56%
US Bank Money Market
U.S. Treasury
(FOZXX) 0% 4.42% 1.64% 1.56% 0.97%
Institutional
Prime Obligations
(FPZXX)
0% 4.70% 1.79% 1.75% 1.14%
Past performance does not guarantee future results; Returns are net of the fund expenses, and gross of advisory fees; PARS is not licensed to provide and does not offer investment advice or recommendations of any kind; All investment decisions in the PARS Section 115 Trust Programs are made at the sole discretion of the City, with or without the assistance of the City’s selected investment advisors and/or managers; HighMark Expected 30-Year Returns analysis as of June 30, 2023 As of September 30, 2023
City of san Pablo ▎ 10
Strategy Allocation* (%)
Capital Appreciation
(65-85% Equity) 5.79%
Balanced
(50-70% Equity) 10.81%
Moderate
(40-60% Equity) 35.91%
Mod. Conservative
(20-40% Equity) 37.07%
Conservative
(5-20% Equity) 5.41%
Other
(Custom) 5.02%
TOTAL 100.00%
PRSP Strategy Allocation – Clients

HIGHMARK CAPITAL MANAGEMENT
Capital Appreciation

5.79%
Balanced

10.81%
Moderate

35.91%
Moderately
Conservative

37.07%
Conservative

5.41%
Other

5.02%
Active Platform: 55% / Passive Platform: 45%
*Allocations are based on agencies who have funded
As of September 30, 2023
City of san Pablo ▎ 11
program fees scenario
Asset Amount: $1,000,000
Fees Breakdown US Bank Money Market
PARS Trust Administration/Consulting
Annual Fees
$2,500
(0.2500%)
Investment Management
Annual Fees $0
U.S. Bank Trustee
Annual Fees $0
TOTAL ANNUAL FEES $2,500
Fees Per Month $208
City of san Pablo ▎ 12
program fees scenario
Asset Amount: $5,000,000
Fees Breakdown US Bank Money Market
PARS Trust Administration/Consulting
Annual Fees
$12,500
(0.2500%)
Investment Management
Annual Fees $0
U.S. Bank Trustee
Annual Fees $0
TOTAL ANNUAL FEES $12,500
Fees Per Month $1,042
City of san Pablo ▎ 13
program fees scenario
Asset Amount: $10,000,000
Fees Breakdown US Bank Money Market
PARS Trust Administration/Consulting
Annual Fees
$25,000
(0.2500%)
Investment Management
Annual Fees $0
U.S. Bank Trustee
Annual Fees $0
TOTAL ANNUAL FEES $25,000
Fees Per Month $2,083
City of san Pablo ▎ 14
Sample Funding Policies

1. Contribute 50% of a given year’s realized year
end surplus to address pension liability

2. Contribute full amount of annual PERS employer cont., allowing anytime access to trust assets

3. Contribute funds to stabilize PERS employer
Misc. and Safety rates through FY 23-24

4. “One equals five plan” - $1M contribution for 5 years will save taxpayers $5M over 25 years

5. Contribute Employer contribution equal to the 2.8%
discount rate, with difference going into the Section 115 Trust

6. Contribute the annual savings realized from Reduction in UAL payment resulting from Pension Obligation Bonds issuance

7. Earmark a portion of a local sales tax to be set
aside for unfunded pension liabilities

8. Use ongoing savings from prepaying CalPERS
unfunded liability vs. higher monthly payments

9. Use one-time revenue source and lower the
minimum General Fund Reserve level (30% → 20%)
Alameda/Solana Beach
City of Brea
City of Healdsburg
City of Huntington Beach
City of Sausalito
City of Placentia
City of Fountain Valley
City of Pasadena
City of Glendale
City of san Pablo ▎ 15
Steps to Implementation
1 City Council authorizes establishment of The PARS Trust and appoints a Plan Administrator
2 PARS provides legal documents for signature by Plan Administrator 3 City develops investment policy and guidelines for Investment Manager 4 City Council approves initial deposit to The PARS Trust 5 Cities develop policies & procedures for future annual contributions and/or disbursements
6 PARS conducts an annual client services review
City of san Pablo ▎ 16
appendix
City of san Pablo ▎ 17
Plan Set-Up Fee: Ongoing Fees:

None None
Us bank money market OPTION: Program Fees
Plan Set-Up Fee: Ongoing Fees:

None 0.25% for assets $0-10 million

0.20% for assets $10-15 million

0.15% for assets $15-50 million

0.10% for assets over $50 million
* PARS does not receive any compensation from the investments or any commissions, back-end loads, or any other forms of compensation. .

Trust Administration/Consulting Fees*
Discretionary Trustee/Investment Management Fees*
Please note that OPEB and pension assets will be combined for fee calculation purposes.

City of san Pablo ▎ 18
Plan Set-Up Fee: Ongoing Fees:

None 0.35% for assets under $5 million

0.25% for assets $5-10 million

0.20% for assets $10-15 million

0.15% for assets $15-50 million

0.10% for assets over $50 million
Highmark investment OPTION: Program Fees
Plan Set-Up Fee: Ongoing Fees:

None 0.25% for assets $0-10 million

0.20% for assets $10-15 million

0.15% for assets $15-50 million

0.10% for assets over $50 million
* PARS does not receive any compensation from the investments or any commissions, back-end loads, or any other forms of compensation. ** Subject to change due to rebalancing.

Trust Administration/Consulting Fees*
Discretionary Trustee/Investment Management Fees*
Please note that OPEB and pension assets will be combined for fee calculation purposes.

First American Money Market Funds
Quasar Distributors, LLC, distributor

NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE October 31, 2023
U.S. Treasury Money Market Fund – Z Class
Net Annualized Monthly Average Yields
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
See FirstAmericanFunds.com for additional historical performance information. 2021 0.01% 0.01% 0.01% 0.01% 0.00% 0.00% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 2022 0.01% 0.01% 0.05% 0.27% 0.47% 0.69% 1.07% 1.82% 2.28% 2.84% 3.44% 3.85% 2023 4.06% 4.25% 4.36% 4.42% 4.54% 4.85% 5.02% 5.16% 5.19% 5.22% † Subsidized (Sub.) yields reflect fee waivers in effect. Without such waivers, yields would be reduced. Unsubsidized (Unsub.) yields do not reflect fee waivers in effect. 1The advisor has contractually agreed to waive fees and reimburse fund expenses through December 31, 2023, so that the total annual fund operating expenses do not exceed as stated. These waivers and reimbursements may be terminated any time after December 31, 2023 by the advisor. Prior to that time, waivers and reimbursements may not be terminated without approval of the fund’s board.

Moody’s Aaa-mf Rating: Money market funds with this rating are judged to be of an investment quality similar to Aaa-rated fixed-income obligations; that is, they are judged to be of the highest quality.

NAIC U.S. Direct Obligations/Full Faith and Credit Exempt (Exempt) List: A money market fund is eligible for listing on the NAIC (National Association of Insurance Commissioners) Exempt List if the fund: (1) maintains a money market fund rating of AAAm from Standard & Poor’s or Aaa-mf from Moody’s Investor Services or an equivalent money market fund rating from any NAIC CRP (2) maintains a stable net asset value per share of $1.00 (3) allows a maximum of seven-day redemption of proceeds (4) invests 100% of its total assets in securities that are direct obligations of the U.S. government and/or in securities that are backed by the full faith and credit of the U.S. government or collateralized repurchase agreements comprised of such obligations at all times. NAIC designations are suitable for NAIC members’ use in determining whether a fund has met certain eligibility requirements for NAIC listing. NAIC designation should not be considered an investment criteria for non-members.

Portfolio Maturity: Maturities of the portfolio’s securities are determined using provisions of SEC Rule 2a-7, which allow the fund to consider certain floating- and variable-rate securities as having maturities shorter than their stated maturity dates.

Standard & Poor’s AAAm Rating: S&P evaluates a number of factors, including credit quality, market price, exposure, and management.

Weighted Average Maturity (WAM) is the time to maturity of all the securities held in the fund, weighted by each security’s percentage of total investments. WAM measures a fund’s sensitivity to interest rate changes.

Mutual fund investing involves risk. This material must be preceded or accompanied by a current prospectus. It contains more information that investors should carefully consider about each fund, including risks, charges and expenses:
call 800.677.3863 or visit www.FirstAmericanFunds.com. Please read it carefully before investing.

For U.S. Treasury – You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee to do so. An investment in the Fund is not a deposit of U.S. Bank National Association and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor is not required to reimburse the fund for losses, and you should not expect that the sponsor will provide financial support to the fund at any time, including during periods of market stress.

Portfolio Maturity
Overnight 14%
2-7 days 11%
8-29 days 25%
30-60 days 31%
61-120 days 16%
121+ days 3%
Portfolio Allocation* (% of Market Value)
U.S. Treasury Debt 100.0%
*Portfolio allocations may change and are not
recommendations to buy or sell.

Portfolio Managers
James Palmer, CFA
36 years of financial industry experience
Jeffrey Plotnik
30 years of financial industry experience
Michael Welle, CFA
31 years of financial industry experience
Contact us at 800.677.3863 or
www.FirstAmericanFunds.com.

Portfolio Characteristics
Total Net Assets (all classes) $4.6 billion
Weighted Average Maturity (WAM) 40 days
Inception Date 10/25/2004
Expense Ratio
Gross 0.21%
Net1 0.20%
Investment Strategy: Seeks to provide maximum current income and daily liquidity by purchasing U.S. Treasury and other money market funds that invest exclusively in such obligations.

Ratings
Moody's Aaa-mf
Standard & Poor's AAAm
Current Yield† Sub. Unsub.
7-Day Yield 5.24% 5.23%
Cutoff Times
Purchases and
Redemptions 12:30 p.m. CT
Ticker CUSIP
FOZXX 31846V450
Performance quoted represents past performance and does not guarantee future results. Investment return will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than quoted. For current month-end performance information, call 800.677.3863. Performance assumes the reinvestment of dividends and capital gains. Investment performance reflects fee waivers. Without waivers, returns and yields would be reduced.

For more information and ratings
methodology, please visit moodys.
com and standardandpoors.com.

NAIC U.S. Direct Obligations/Full Faith & Credit Exempt List First American Money Market Funds
Quasar Distributors, LLC, distributor

NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE October 31, 2023
Institutional Prime Obligations Fund – Z Class
Net Annualized Monthly Average Yields
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
See FirstAmericanFunds.com for additional historical performance information. 2021 0.06% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 2022 0.05% 0.05% 0.13% 0.29% 0.68% 1.05% 1.56% 2.22% 2.51% 3.01% 3.75% 4.13% 2023 4.36% 4.55% 4.66% 4.80% 5.01% 5.08% 5.12% 5.29% 5.28% 5.30% † Subsidized (Sub.) yields reflect fee waivers in effect. Without such waivers, yields would be reduced. Unsubsidized (Unsub.) yields do not reflect fee waivers in effect. 1The advisor has contractually agreed to waive fees and reimburse fund expenses through December 31, 2023, so that the total annual fund operating expenses do not exceed as stated. These waivers and reimbursements may be terminated any time after December 31, 2023 by the advisor. Prior to that time, waivers and reimbursements may not be terminated without approval of the fund’s board.

Standard & Poor’s AAAm Rating: S&P evaluates a number of factors, including credit quality, market price, exposure, and management.

For Institutional Prime Obligations – You could lose money by investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon the sale of your shares. An investment in the Fund is not a deposit of U.S. Bank National Association and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor is not required to reimburse the fund for losses, and you should not expect that the sponsor will provide financial support to the fund at any time, including during periods of market stress.

Portfolio Maturity
Overnight 67%
2-7 days 10%
8-29 days 12%
30-60 days 3%
61-120 days 2%
121+ days 6%
Portfolio Allocation* (% of Market Value)
Asset Backed Commercial Paper 14.9%
Certificates of Deposit 9.2%
Financial Company Commercial Paper 12.5%
Non-Financial Company Commercial
Paper

10.4%
Non-Negotiable Time Deposits 7.0%
Other Instruments 0.7%
Other Repurchase Agreements 17.4%
U.S. Treasury Debt 1.3%
U.S. Treasury Repurchase Agreements 26.3%
Variable Rate Demand Notes 0.3%
*Portfolio allocations may change and are not
recommendations to buy or sell.

Portfolio Characteristics
Total Net Assets (all classes) $1.8 billion
Weighted Average Maturity (WAM) 18 days
Inception Date 08/01/2003
Expense Ratio
Gross 0.24%
Net1 0.20%
Investment Strategy: Seeks to provide maximum current income and daily liquidity by purchasing high-quality short-term debt securities such as commercial paper, repurchase agreements, variable rate demand notes and bank instruments.

Ratings
Moody's Aaa-mf
Standard & Poor's AAAm
Current Yield† Sub. Unsub.
7-Day Yield 5.31% 5.29%
Cutoff Times
Purchases and
Redemptions
8:00 a.m., 11:00 a.m.,
and 2:00 p.m. CT
Ticker CUSIP
FPZXX 31846V625
Performance quoted represents past performance and does not guarantee future results. Investment return will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than quoted. For current month-end performance information, call 800.677.3863. Performance assumes the reinvestment of dividends and capital gains. Investment performance reflects fee waivers. Without waivers, returns and yields would be reduced.

For more information and ratings
methodology, please visit moodys.
com and standardandpoors.com.

For Institutional Investor or Investment Professional Use Only | See Important Disclosures

PARS DIVERSIFIED PORTFOLIOS

CAPITAL APPRECIATION

INVESTMENT OBJECTIVE

ANNUAL RETURNS
ASSET ALLOCATION — CAPITAL APPRECIATION PORTFOLIO
Comprehensive Investment Solution
HighMark® Capital Management, Inc.’s (HighMark)
diversified investment portfolios are designed to
balance return expectations with risk tolerance.

Key features include: sophisticated asset allocation
and optimization techniques, four layers of
diversification (asset class, style, manager, and
security), access to rigorously screened, top tier
money managers, flexible investment options, and
experienced investment management.

Rigorous Manager Due Diligence
Our manager review committee utilizes a rigorous
screening process that searches for investment
managers and styles that have not only produced
above-average returns within acceptable risk
parameters, but have the resources and commitment
to continue to deliver these results. We have set high
standards for our investment managers and funds.

This is a highly specialized, time consuming
approach dedicated to one goal: competitive and
consistent performance.

Flexible Investment Options
In order to meet the unique needs of our clients,
we offer access to flexible implementation strategies:

HighMark Plus utilizes actively managed mutual
funds while Index Plus utilizes index-based
securities, including exchange-traded funds. Both
investment options leverage HighMark’s active asset
allocation approach.

Risk Management
The portfolio is constructed to control risk through
four layers of diversification – asset classes (cash,
fixed income, equity), investment styles (large cap,
small cap, international, value, growth), managers
and securities. Disciplined mutual fund selection and
monitoring process helps to drive return potential
while reducing portfolio risk.

WHY THE PARS DIVERSIFIED
CAPITAL APPRECIATION PORTFOLIO?
Q3 2023
* Returns less than one year are not annualized. **Breakdown for Blended Benchmark: 39.5% S&P500, 7.5% Russell Mid Cap,

10.5% Russell 2000, 5.25% MSCI EM (net), 10.25% MSCI EAFE (net), 16% Bloomberg US Agg, 3% ICE BofA 1-3 Yr US Corp/Gov’t, 1% ICE BofA US High Yield Master II, 2% Wilshire REIT, and 5% FTSE 1 Mth US T-Bill.

To provide growth of principal.

The major portion of the assets
are invested in equity securities
and market fluctuations are
expected.

Strategic Range Policy Tactical
Equity 65 - 85% 75% 72%
Fixed Income 10 - 30% 20% 23%
Cash 0 - 20% 5% 5%

ANNUALIZED TOTAL RETURNS
(Gross of Investment Management Fees, but Net of
Embedded Fund Fees)
Consolidated Composite
Gross Net
Current Quarter* -3.33% -3.42%
Blended Benchmark*,** -3.26%
Year To Date* 6.27% 5.99%
Blended Benchmark*,** 6.71%
1 Year 12.95% 12.55%
Blended Benchmark** 14.41%
3 Year 4.96% 4.58%
Blended Benchmark** 5.47%
5 Year 5.24% 4.86%
Blended Benchmark** 5.62%
10 Year 6.84% 6.46%
Blended Benchmark** 7.25%

PORTFOLIO FACTS
Consolidated Composite
Composite Inception Date 01/2009
No of Holdings in Portfolio 20
Efficient Frontier
Risk (Standard Deviation)
Reward (Rate of Return)Conservative
Moderately Conservative
Moderate
Capital Appreciation
Balanced
(Gross of Investment Management Fees, but Net of Embedded Fund Fees)
Consolidated Composite
2008 N/A
2009 23.77%
2010 12.95%
2011 -1.35%
2012 13.87%
2013 20.33%
2014 6.05%
2015 -0.26%
2016 8.79%
2017 16.72%
2018 -5.82%
2019 22.62%
2020 14.50%
2021 14.96%
2022 -16.08%

HIGHMARK CAPITAL MANAGEMENT
350 California Street
Suite 1600
San Francisco, CA 94104
800-582-4734

ABOUT THE ADVISER
HighMark® Capital Management, Inc. (HighMark) has
over 100 years (including predecessor organizations) of institutional money management experience with $8.6
billion in assets under management*. HighMark has a
long term disciplined approach to money management
and currently manages assets for a wide array of
clients.

ABOUT THE PORTFOLIO MANAGEMENT TEAM
Andrew Brown, CFA
®
Senior Portfolio Manager
Investment Experience: since 1994
HighMark Tenure: since 1997
Education: MBA, University of Southern California;
BA, University of Southern California
Salvatore “Tory” Milazzo III, CFA®
Senior Portfolio Manager
Investment Experience: since 2004
HighMark Tenure: since 2014
Education: BA, Colgate University
J. Keith Stribling, CFA®
Senior Portfolio Manager
Investment Experience: since 1985
HighMark Tenure: since 1995
Education: BA, Stetson University
Christiane Tsuda
Senior Portfolio Manager
Investment Experience: since 1987
HighMark Tenure: since 2010
Education: BA, International Christian University, Tokyo Anne Wimmer, CFA
®
Senior Portfolio Manager
Investment Experience: since 1987
HighMark Tenure: since 2007
Education: BA, University of California, Santa Barbara
Asset Allocation Committee
Number of Members: 11
Average Years of Experience: 30
Average Tenure (Years): 17
Manager Review Group
Number of Members: 3
Average Years of Experience: 29
Average Tenure (Years): 13
*Assets under management (“AUM”) include assets for which HighMark provides continuous and regular supervisory and management services. As of 6/1/2023 HighMark previously listed Assets under Advisement (“AUA”) are no longer advised by HighMark.

For Institutional Investor or Investment Professional Use Only | See Important Disclosures The performance records shown represent a size-weighted composite of tax exempt accounts that meet the following criteria: Accounts are managed by HighMark with full investment authority according to the PARS Capital Appreciation active and passive objectives.

The adviser to the PARS portfolios is U.S. Bank, and HighMark serves as sub-adviser to U.S. Bank to manage these portfolios. U.S. Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. U.S. Bank pays HighMark 60% of the annual management fee for assets sub-advised by HighMark under its sub-advisory agreement with U.S. 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 after fees (Net-of-Fees) and $12.76 million before fees (Gross-of-Fees). Gross returns are presented before management and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income. A client's return will be reduced by the advisory fees and other expenses it may incur as a client. Additional information regarding the firm’s policies and procedures for calculating and reporting performance results is available upon request. Performance results are 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 monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the 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-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and 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 U.S. 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 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 U.S. Treasury Bill Index tracks the yield of the 1-month U.S. Treasury Bill.

HighMark Capital Management, Inc. (HighMark) is an investment adviser registered with the U.S. Securities and Exchange Commission and 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 HighMark. HighMark manages institutional separate account portfolios for a wide variety of for -profit and nonprofit organizations, public agencies, and public and private retirement plans. Individual account management and construction will vary depending on each client's investment needs and objectives. U.S. Bank provides certain services to HighMark and is compensated for these services. Investments employing HighMark strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal. 350 California Street
Suite 1600
San Francisco, CA 94104
800.582.4734
www.highmarkcapital.com

HOLDINGS
STYLE
Small Cap

9.1%
Interm-Term Bond

19.5%
Mortgage Backed
Securities

1.6%
U.S. Treasury Bond

1.6%
Large Cap Core

21.2%
Large Cap Growth

7.9%
Mid Cap

8.1%
Intl Stocks

15.4%
Cash

4.8%
Large Cap Value

9.1%
Real Estate

1.7%
Holdings are subject to change at the
discretion of the investment manager.

HighMark Plus (Active) Index Plus (Passive)
Columbia Contrarian Core I3 iShares Core S&P 500 ETF
Vanguard Growth & Income Adm iShares S&P 500 Value ETF
Dodge & Cox Stock Fund iShares S&P 500 Growth ETF
iShares S&P 500 Value ETF iShares Russell Mid-Cap ETF
Harbor Capital Appreciation - Retirement Vanguard Real Estate ETF iShares S&P 500 Growth ETF iShares Russell 2000 Value ETF iShares Russell Mid-Cap ETF iShares Russell 2000 Growth ETF Vanguard Real Estate ETF iShares Core MSCI EAFE ETF
Undiscovered Managers Behavioral Value-R6 Vanguard FTSE Emerging Markets ETF Emerald Growth Fund-I iShares MBS ETF
DFA Large Cap International Portfolio iShares U.S. Treasury Bond ETF Dodge & Cox International Stock iShares Core U.S. Aggregate MFS International Growth - R6 First American Government Obligations Z Hartford Schroders Emerging Markets Eq
iShares MBS ETF
iShares U.S. Treasury Bond ETF
Dodge & Cox Income-I
PGIM Total Return Bond - R6
DoubleLine Core Fixed Income - I
First American Government Obligations Z
For Institutional Investor or Investment Professional Use Only | See Important Disclosures HighMark Plus (Active)
Composite Inception Date 10/2006
No of Holdings in Portfolio 20

PARS DIVERSIFIED PORTFOLIOS

BALANCED

INVESTMENT OBJECTIVE

ANNUAL RETURNS
ASSET ALLOCATION — BALANCED PORTFOLIO
Comprehensive Investment Solution
HighMark® Capital Management, Inc.’s (HighMark)
diversified investment portfolios are designed to
balance return expectations with risk tolerance.

This is a highly specialized, time consuming
approach dedicated to one goal: competitive and
consistent performance.

Flexible Investment Options
In order to meet the unique needs of our clients,
we offer access to flexible implementation strategies:

WHY THE PARS DIVERSIFIED
BALANCED PORTFOLIO?
Q3 2023
* Returns less than one year are not annualized. **Breakdown for Blended Benchmark: From 10/1/2012 – Present: 32% S&P500, 6% Russell Mid Cap, 9% Russell 2000, 4% MSCI EM (net), 7% MSCI EAFE (net), 27% Bloomberg US Agg, 6.75% ICE BofA 1-3 Yr US Corp/Gov’t, 1.25% ICE BofA US High Yield Master II, 2% Wilshire REIT, and 5% FTSE 1 Mth US T-Bill. From 4/1/2007 – 9/30/2012:
the blended benchmark was 51% S&P 500; 3% Russell 2000, 6% MSCI EAFE (net), 5% ICE BofA 1-3 Year Corp./Govt, 30% Bloomberg US Agg, 5% FTSE 1 Mth US T-Bill. Prior to April 2007: the blended benchmark was 60% S&P 500, 5% ICE BofA 1-3Yr Corp/Gov, 30% Bloomberg US Agg, and 5% FTSE 1 Mth US T-Bill.

To provide growth of principal and
income. While dividend and
interest income are an important
component of the objective’s
total return, it is expected that
capital appreciation will comprise
a larger portion of the total return.

Strategic Range Policy Tactical
Equity 50 – 70% 60% 58%
Fixed Income 30 – 50% 35% 38%
Cash 0 – 20% 5% 4%

ANNUALIZED TOTAL RETURNS
(Gross of Investment Management Fees, but Net of
Embedded Fund Fees)
HighMark Plus Composite (Active)
Gross Net
Current Quarter* -3.16% -3.25%
Blended Benchmark*,** -3.03%
Year To Date* 5.05% 4.77%
Blended Benchmark*,** 5.33%
1 Year 10.59% 10.20%
Blended Benchmark** 11.64%
3 Year 3.28% 2.91%
Blended Benchmark** 3.71%
5 Year 4.39% 4.02%
Blended Benchmark** 4.76%
10 Year 5.76% 5.38%
Blended Benchmark** 6.18%
Index Plus Composite (Passive)
Gross Net
Current Quarter* -3.46% -3.55%
Blended Benchmark*,** -3.03%
Year To Date* 4.30% 4.02%
Blended Benchmark*,** 5.33%
1 Year 9.91% 9.52%
Blended Benchmark** 11.64%
3 Year 3.04% 2.67%
Blended Benchmark** 3.71%
5 Year 4.24% 3.87%
Blended Benchmark** 4.76%
10 Year 5.63% 5.25%
Blended Benchmark** 6.18%

PORTFOLIO FACTS
Index Plus (Passive)
Composite Inception Date 10/2007
No of Holdings in Portfolio 13
Efficient Frontier
Risk (Standard Deviation)
Reward (Rate of Return)Conservative
Moderately Conservative
Moderate
Capital Appreciation
Balanced
(Gross of Investment Management Fees, but Net of Embedded Fund Fees)
HighMark Plus Composite (Active)
2008 -25.72%
2009 21.36%
2010 14.11%
2011 -0.46%
2012 13.25%
2013 16.61%
2014 4.70%
2015 0.04%
2016 6.81%
2017 15.46%
2018 -4.88%
2019 19.85%
2020 13.85%
2021 11.44%
2022 -15.28%
Index Plus Composite (Passive)
2008 -23.22%
2009 17.62%
2010 12.76%
2011 1.60%
2012 11.93%
2013 15.63%
2014 6.08%
2015 -0.81%
2016 8.26%
2017 13.39%
2018 -5.05%
2019 19.59%
2020 12.07%
2021 12.63%
2022 -14.97%

HIGHMARK CAPITAL MANAGEMENT
350 California Street
Suite 1600
San Francisco, CA 94104
800-582-4734

Accounts are managed by HighMark with full investment authority according to the PARS Balanced active and passive objectives.

The composite name has been changed from PARS Balanced/Moderately Aggressive to PARS Balanced on 5/1/2013. The adviser to the PARS portfolios is U.S. Bank, and HighMark serves as sub-adviser to U.S. Bank to manage these portfolios.

U.S. Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. U.S. Bank pays HighMark 60% of the annual management fee for assets sub-advised by HighMark under its sub-advisory agreement with U.S. 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 after fees (Net-of-Fees) and $12.76 million before fees (Gross-of-Fees). Gross returns are presented before management and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income. A client's return will be reduced by the advisory fees and other expenses it may incur as a client. Additional information regarding the firm’s policies and procedures for calculating and reporting performance results is available upon request.

Performance results are 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 monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the 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- adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and 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 U.S. 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 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 U.S. Treasury Bill Index tracks the yield of the 1-month U.S. Treasury Bill.

HighMark manages institutional separate account portfolios for a wide variety of for -profit and nonprofit organizations, public agencies, and public and private retirement plans. Individual account management and construction will vary depending on each client's investment needs and objectives. U.S. Bank provides certain services to HighMark and is compensated for these services. Investments employing HighMark strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal.
350 California Street
Suite 1600
San Francisco, CA 94104
800.582.4734
www.highmarkcapital.com

HOLDINGS
STYLE
Small Cap

7.9%
Interm-Term Bond

33.1%
Mortgage Backed Securities

2.4%
U.S. Treasury Bond

2.4%
Large Cap Core

16.8%
Large Cap Growth

6.5%
Mid Cap

6.5%
Intl Stocks

11.1%
Cash

4.0%
Large Cap Value

7.5%
Real Estate

1.8%
Holdings are subject to change at the
discretion of the investment manager.

PARS DIVERSIFIED PORTFOLIOS

MODERATE

INVESTMENT OBJECTIVE

ANNUAL RETURNS
ASSET ALLOCATION — MODERATE PORTFOLIO
Comprehensive Investment Solution
HighMark® Capital Management, Inc.’s (HighMark)
diversified investment portfolios are designed to
balance return expectations with risk tolerance.

This is a highly specialized, time consuming
approach dedicated to one goal: competitive and
consistent performance.

Flexible Investment Options
In order to meet the unique needs of our clients,
we offer access to flexible implementation strategies:

WHY THE PARS DIVERSIFIED
MODERATE PORTFOLIO?
Q3 2023
* Returns less than one year are not annualized. **Breakdown for Blended Benchmark: From 10/1/2012 – Present: 26.5% S&P500, 5% Russell Mid Cap, 7.5% Russell 2000, 3.25% MSCI EM (net), 6% MSCI EAFE (net), 33.50% Bloomberg US Agg, 10% ICE 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 US T-Bill. From 4/1/2007 – 9/30/2012: the blended benchmark was 43% S&P 500; 2% Russell 2000, 5% MSCI EAFE (net), 15% ICE BofA 1-3 Year Corp./Govt, 30% Bloomberg US Agg, 5% FTSE 1 Mth US T-Bill. Prior to April 2007: the blended benchmark was 50% S&P 500, 15% ICE BofA 1- 3Yr Corp/Gov, 30% Bloomberg US Agg, and 5% FTSE 1 Mth US T-Bill.

To provide current income and
moderate capital appreciation.

It is expected that dividend and
interest income will comprise a
significant portion of total return,
although growth through capital
appreciation is equally important.

Strategic Range Policy Tactical
Equity 40 - 60% 50% 48%
Fixed Income 40 - 60% 45% 48%
Cash 0 - 20% 5% 4%

ANNUALIZED TOTAL RETURNS
(Gross of Investment Management Fees, but Net of
Embedded Fund Fees)
Index Plus Composite (Passive)
Gross Net
Current Quarter* -3.37% -3.46%
Blended Benchmark*,** -2.83%
Year To Date* 3.42% 3.14%
Blended Benchmark*,** 4.46%
1 Year 8.36% 7.97%
Blended Benchmark** 9.99%
3 Year 1.85% 1.48%
Blended Benchmark** 2.53%
5 Year 3.63% 3.26%
Blended Benchmark** 4.12%
10 Year 4.89% 4.51%
Blended Benchmark** 5.38%

PORTFOLIO FACTS
HighMark Plus (Active)
Composite Inception Date 10/2004
No of Holdings in Portfolio 20
Index Plus (Passive)
Composite Inception Date 05/2006
No of Holdings in Portfolio 13
Efficient Frontier
Risk (Standard Deviation)
Reward (Rate of Return)Conservative
Moderately Conservative
Moderate
Capital Appreciation
Balanced
(Gross of Investment Management Fees, but Net of Embedded Fund Fees)
HighMark Plus Composite (Active)
2008 -22.88%
2009 21.47%
2010 12.42%
2011 0.55%
2012 12.25%
2013 13.06%
2014 4.84%
2015 0.14%
2016 6.45%
2017 13.19%
2018 -4.03%
2019 17.71%
2020 12.92%
2021 9.31%
2022 -14.63%
Index Plus Composite (Passive)
2008 -18.14%
2009 16.05%
2010 11.77%
2011 2.29%
2012 10.91%
2013 12.79%
2014 5.72%
2015 -0.52%
2016 7.23%
2017 11.59%
2018 -4.03%
2019 17.52%
2020 11.23%
2021 10.18%
2022 -14.21%
HighMark Plus Composite (Active)
Gross Net
Current Quarter* -3.02% -3.11%
Blended Benchmark*,** -2.83%
Year To Date* 4.30% 4.02%
Blended Benchmark*,** 4.46%
1 Year 9.22% 8.83%
Blended Benchmark** 9.99%
3 Year 2.11% 1.75%
Blended Benchmark** 2.53%
5 Year 3.84% 3.46%
Blended Benchmark** 4.12%
10 Year 5.06% 4.69%
Blended Benchmark** 5.38%

HIGHMARK CAPITAL MANAGEMENT
350 California Street
Suite 1600
San Francisco, CA 94104
800-582-4734

For Institutional Investor or Investment Professional Use Only | See Important Disclosures The performance records shown represent size-weighted composites of tax exempt accounts that meet the following criteria: Accounts are managed by HighMark with full investment authority according to the PARS Moderate active and passive objectives.

HOLDINGS
STYLE
Small Cap

6.6%
Interm-Term Bond

41.9%
Mortgage Backed Securities

3.0%
U.S. Treasury
Bond

3.0%
Large Cap Core

13.8%
Large Cap Growth

5.4%
Mid Cap

5.4%
Intl Stocks

9.4%
Cash

3.7%
Large Cap Value

6.2%
Real Estate

1.6%
Holdings are subject to change at the
discretion of the investment manager.

PARS DIVERSIFIED PORTFOLIOS

MODERATELY CONSERVATIVE

INVESTMENT OBJECTIVE

ANNUAL RETURNS
ASSET ALLOCATION — MODERATELY CONSERVATIVE PORTFOLIO
Comprehensive Investment Solution
HighMark® Capital Management, Inc.’s (HighMark)
diversified investment portfolios are designed to
balance return expectations with risk tolerance.

This is a highly specialized, time consuming
approach dedicated to one goal: competitive and
consistent performance.

Flexible Investment Options
In order to meet the unique needs of our clients,
we offer access to flexible implementation strategies:

WHY THE PARS DIVERSIFIED
MODERATELY CONSERVATIVE PORTFOLIO?
Q3 2023
* Returns less than one year are not annualized. **Breakdown for Blended Benchmark: From 10/1/2012 - Present: 15.5% S&P500, 3% Russell Mid Cap, 4.5% Russell 2000, 2% MSCI EM (net), 4% MSCI EAFE (net), 49.25% Bloomberg US Agg, 14% ICE BofA 1- 3 Yr US Corp/Gov’t, 1.75% ICE BofA US High Yield Master II, 1% Wilshire REIT, and 5% FTSE 1 Mth US T-Bill. From 4/1/2007 - 9/30/2012: the blended benchmark was 25% S&P 500; 1.5% Russell 2000, 3.5% MSCI EAFE (net), 25% ICE BofA 1-3 Year Corp./Govt, 40% Bloomberg US Agg, 5% FTSE 1 Mth US T-Bill. Prior to April 2007, the blended benchmark was 30% S&P 500, 25% ICE BofA 1-3Yr Corp/Gov, 40% Bloomberg US Agg, and 5% FTSE 1 Mth US T-Bill.

To provide current income, with
capital appreciation as a
secondary objective. The major
portion of the assets is committed
to income-producing securities.

Market fluctuations should be
expected.

Strategic Range Policy Tactical
Equity 20 - 40% 30% 29%
Fixed Income 50 - 80% 65% 67%
Cash 0 - 20% 5% 4%

ANNUALIZED TOTAL RETURNS
(Gross of Investment Management Fees, but Net of
Embedded Fund Fees)
HighMark Plus Composite (Active)
Gross Net
Current Quarter* -2.83% -2.91%
Blended Benchmark*,** -2.55%
Year To Date* 2.60% 2.32%
Blended Benchmark*,** 2.58%
1 Year 6.24% 5.86%
Blended Benchmark** 6.60%
3 Year -0.27% -0.63%
Blended Benchmark** -0.01%
5 Year 2.50% 2.14%
Blended Benchmark** 2.72%
10 Year 3.56% 3.19%
Blended Benchmark** 3.71%
Index Plus Composite (Passive)
Gross Net
Current Quarter* -3.14% -3.23%
Blended Benchmark*,** -2.55%
Year To Date* 1.73% 1.45%
Blended Benchmark*,** 2.58%
1 Year 5.29% 4.91%
Blended Benchmark** 6.60%
3 Year -0.66% -1.01%
Blended Benchmark** -0.01%
5 Year 2.35% 1.98%
Blended Benchmark** 2.72%
10 Year 3.40% 3.03%
Blended Benchmark** 3.71%

PORTFOLIO FACTS
Index Plus (Passive)
Composite Inception Date 05/2005
No of Holdings in Portfolio 13
Efficient Frontier
Risk (Standard Deviation)
Reward (Rate of Return)Conservative
Moderately Conservative
Moderate
Capital Appreciation
Balanced
(Gross of Investment Management Fees, but Net of Embedded Fund Fees)
HighMark Plus Composite (Active)
2008 -15.37%
2009 18.71%
2010 10.46%
2011 1.75%
2012 10.88%
2013 7.30%
2014 4.41%
2015 0.32%
2016 4.94%
2017 9.56%
2018 -2.60%
2019 13.73%
2020 10.76%
2021 5.15%
2022 -13.46%
Index Plus Composite (Passive)
2008 -12.40%
2009 11.92%
2010 9.72%
2011 3.24%
2012 8.24%
2013 6.78%
2014 5.40%
2015 -0.18%
2016 5.42%
2017 8.08%
2018 -2.33%
2019 13.53%
2020 9.74%
2021 5.33%
2022 -13.00%

HIGHMARK CAPITAL MANAGEMENT
350 California Street
Suite 1600
San Francisco, CA 94104
800-582-4734

For Institutional Investor or Investment Professional Use Only | See Important Disclosures The performance records shown represent a size-weighted composite of tax exempt accounts that meet the following criteria: Accounts are managed by HighMark with full investment authority according to the PARS Moderately Conservative active and passive objectives.

Gross returns are presented before management and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income. A client's return will be reduced by the advisory fees and other expenses it may incur as a client. Additional information regarding the firm’s policies and procedures for calculating and reporting performance results is available upon request. Performance results are 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.

Treasury Bill Index tracks the yield of the 1-month U.S. Treasury Bill.

HOLDINGS
STYLE
Small Cap 4.0%
Interm-Term Bond

58.9%
Mortgage Backed
Securities 4.0%
U.S. Treasury
Bond 4.0%
Large Cap Core

8.1%
Large Cap Growth

3.2%
Mid Cap 3.3%
Intl Stocks 5.9%
Cash 4.0%
Large Cap Value

3.7% Real Estate 0.9%
Holdings are subject to change at the
discretion of the investment manager.

PARS DIVERSIFIED PORTFOLIOS

CONSERVATIVE

INVESTMENT OBJECTIVE

ANNUAL RETURNS
ASSET ALLOCATION — CONSERVATIVE PORTFOLIO
Comprehensive Investment Solution
HighMark® Capital Management, Inc.’s (HighMark)
diversified investment portfolios are designed to
balance return expectations with risk tolerance.

This is a highly specialized, time consuming
approach dedicated to one goal: competitive and
consistent performance.

Flexible Investment Options
In order to meet the unique needs of our clients,
we offer access to flexible implementation strategies:

WHY THE PARS DIVERSIFIED
CONSERVATIVE PORTFOLIO?
Q3 2023
* Returns less than one year are not annualized. **Breakdown for Blended Benchmark: From 10/1/2012 - Present: 7.5% S&P500,

1.5% Russell Mid Cap, 2.5% Russell 2000, 1% MSCI EM (net), 2% MSCI EAFE (net), 52.25% Bloomberg US Agg, 25.75% ICE BofA 1-3 Yr US Corp/Gov’t, 2% ICE BofA US High Yield Master II, 0.5% Wilshire REIT, and 5% FTSE 1 Mth US T-Bill. From 4/1/2007 – 9/30/2012, the blended benchmark was 12% S&P 500; 1% Russell 2000, 2% MSCI EAFE (net), 40% ICE BofA 1-3 Year Corp./Govt, 40% Bloomberg US Agg, 5% FTSE 1 Mth US T-Bill. Prior to April 2007: the blended benchmark was 15% S&P 500, 40% ICE BofA 1-3Yr Corp/Gov, 40% Bloomberg US Agg, and 5% FTSE 1 Mth US T-Bill.

To provide a consistent level of
inflation-protected income over
the long-term. The major portion
of the assets will be fixed income
related. Equity securities are
utilized to provide inflation
protection.

Conservative
Moderately Conservative
Moderate
Balanced
Capital Appreciation
Efficient Frontier
Risk (Standard Deviation)
Reward (Rate of Return)
Strategic Range Policy Tactical
Equity 5 – 20% 15% 14%
Fixed Income 60 – 95% 80% 82%
Cash 0 – 20% 5% 4%

ANNUALIZED TOTAL RETURNS
(Gross of Investment Management Fees, but Net of
Embedded Fund Fees)
Index Plus Composite (Passive)
Gross Net
Current Quarter* -3.09% -3.18%
Blended Benchmark*,** -1.99%
Year To Date* 0.37% 0.10%
Blended Benchmark*,** 1.48%
1 Year 2.90% 2.53%
Blended Benchmark** 4.24%
3 Year -2.47% -2.82%
Blended Benchmark** -1.49%
5 Year 1.30% 0.94%
Blended Benchmark** 1.73%
10 Year 2.16% 1.79%
Blended Benchmark** 2.46%

PORTFOLIO FACTS
Index Plus (Passive)
Composite Inception Date 07/2004
No of Holdings in Portfolio 13
(Gross of Investment Management Fees, but Net of Embedded Fund Fees)
HighMark Plus Composite (Active)
2008 -9.04%
2009 15.59%
2010 8.68%
2011 2.19%
2012 8.45%
2013 3.69%
2014 3.88%
2015 0.29%
2016 4.18%
2017 6.73%
2018 -1.35%
2019 11.05%
2020 9.03%
2021 2.20%
2022 -12.63%
Index Plus Composite (Passive)
2008 -6.70%
2009 10.49%
2010 7.67%
2011 3.70%
2012 6.22%
2013 3.40%
2014 4.32%
2015 0.06%
2016 3.75%
2017 5.52%
2018 -1.09%
2019 10.37%
2020 8.56%
2021 1.97%
2022 -12.06%

HIGHMARK CAPITAL MANAGEMENT
350 California Street
Suite 1600
San Francisco, CA 94104
800-582-4734

ABOUT THE PORTFOLIO MANAGEMENT TEAM
Andrew Brown, CFA
®
Senior Portfolio Manager
Investment Experience: since 1994
HighMark Tenure: since 1997
Education: MBA, University of Southern California;
BA, University of Southern California
Salvatore “Tory” Milazzo III, CFA®
Senior Portfolio Manager
Investment Experience: since 2004
HighMark Tenure: since 2014
Education: BA, Colgate University
J. Keith Stribling, CFA ®
Senior Portfolio Manager
Investment Experience: since 1985
HighMark Tenure: since 1995
Education: BA, Stetson University
Christiane Tsuda
Senior Portfolio Manager
Investment Experience: since 1987
HighMark Tenure: since 2010
Education: BA, International Christian University, Tokyo Anne Wimmer, CFA
®
Senior Portfolio Manager
Investment Experience: since 1987
HighMark Tenure: since 2007
Education: BA, University of California, Santa Barbara
Asset Allocation Committee
Number of Members: 11
Average Years of Experience: 30
Average Tenure (Years): 17
Manager Review Group
Number of Members: 3
Average Years of Experience: 29
Average Tenure (Years): 13
*Assets under management (“AUM”) include assets for which HighMark provides continuous and regular supervisory and management services. As of 6/1/2023 HighMark previously listed Assets under Advisement (“AUA”) are no longer advised by HighMark.

Accounts are managed by HighMark with full investment authority according to the PARS Conservative active and passive objectives.

Blended benchmarks represent HighMark’s strategic allocations between equity, fixed income, and cash and are rebalanced monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the 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- adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and 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 U.S. 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 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 U.S. Treasury Bill Index tracks the yield of the 1-month U.S. Treasury Bill.

HOLDINGS
STYLE
Small Cap

2.2%
Interm-Term Bond

71.8%
Mortgage Backed
Securities

4.8%
U.S. Treasury Bond

4.8%
Large Cap Core

4.1%
Large Cap Growth

1.5%
Mid Cap

1.6%
Intl Stocks

2.8%
Cash

4.0%
Large Cap Value

1.8% Real Estate

0.4%
Holdings are subject to change at the
discretion of the investment manager.

San Pablo City CouncilDecember 13, 2023

San Pablo City Council
December 13, 2023