HomeMy WebLinkAboutMINUTES - 03252014 - C.97RECOMMENDATION(S):
ACCEPT quarterly report of the Post Retirement Health Benefits Trust Agreement Advisory Body.
FISCAL IMPACT:
No specific fiscal impact. This is a quarterly report of the County's assets in the Public Agency Retirement Services
(PARS) Public Agencies Post-Retirement Health Care Plan Trust.
BACKGROUND:
On December 14, 2010, the Board of Supervisors directed the formation of a Post Retirement Health Benefits Trust
Agreement Advisory Body (consisting of the County Administrator, County Finance Director, Treasurer-Tax
Collector, Auditor-Controller, and Health Services Finance Director).
The Advisory Body meets quarterly. At its meeting of August 4, 2011, the body discussed and reviewed final report
formats with HighMark Capital Management and made recommendations regarding a final standardized quarterly
report. The attached report is in the standardized format. The following is the investment summary presented at the
February 6, 2014 quarterly meeting for the period ending December 31, 2013:
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 03/25/2014 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor
ABSENT:Mary N. Piepho, District III Supervisor
Contact: Lisa Driscoll, County Finance
Director (925) 335-1023
I hereby certify that this is a true and correct copy of an action taken and entered on the
minutes of the Board of Supervisors on the date shown.
ATTESTED: March 25, 2014
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Stephanie L. Mello, Deputy
cc: Robert Campbell, Auditor-Controller, Russell Watts, Treasurer-Tax Collector, Patrick Godley, Chief Financial Officer/Health Services
C. 97
To:Board of Supervisors
From:David Twa, County Administrator
Date:March 25, 2014
Contra
Costa
County
Subject:Quarterly Report of the Post Retirement Health Benefits Trust Agreement Advisory Body
BACKGROUND: (CONT'D)
Investment Summary Fourth Quarter 2013
Beginning Value $119,177,059.08
Net Contributions/Withdrawals 4,780,957.26
Fees Deducted -52,725.56
Income Received 2,698,608.36
Market Appreciation 2,749,788.82
Net Change in Accrued Income 55,198.42
Ending Market Value $129,408,886.38
Additional Materials -
A Post Retirement Health Benefits Trust Agreement Advisory Body web-page can be found at the following
address:
http://ca-contracostacounty.civicplus.com/index.aspx?NID=2915. The page describes the function of the body,
posts quarterly meeting materials, and all pertinent trust and plan documents.
CONSEQUENCE OF NEGATIVE ACTION:
None.
CHILDREN'S IMPACT STATEMENT:
None.
ATTACHMENTS
Fourth Quarter 2013
PARS: County of Contra CostaFourth Quarter 2013Presented byAndrew Brown, CFA
PARS: County of Contra CostaDISCUSSION HIGHLIGHTSU.S Economic and Market Overview The fourth quarter of 2013 was a fascinating three-month period, filled with drama, intrigue, and pleasant surprises. The quarter began with astalemate in Congress over how to fund The Affordable Care Act (a.k.a. “Obamacare”) leaving an inability to appropriate Government funds. Theresult of the impasse was a Government shutdown that began on October 1stand lasted 17 days, long enough to create serious concernregarding how the economy, still struggling to gain momentum, would be impaired. Adding fuel to the fire, the shutdown coincided with the rapidlyapproaching debt ceiling. The U.S. Treasury set October 17thas the date upon which the United States would be unable to meet all debtobligations due to debt ceiling restrictions. Over those 17 days, the effects were seismic. Fitch, one of the three major credit-rating agencies,placed the U.S. on “rating watch negative,” while major foreign governments holding trillions in U.S. debt warned of dire consequences should theU.S. fail to make principal and interest payments. Media pundits followed suit, suggesting a global recession was looming, and the dollar was atrisk. Fortunately, just before the October 17thdeadline, compromise was finally reached, allowing Congress to end the shutdown and temporarilysuspend the debt limit. As a result, Government funding continued at sequestration levels until January 15th, 2014, while the debt limit wassuspended until February 7th.This compromise meant that investors now had room to digest the impact of the shutdown and contemplate what the next 90 days might offer.While the weeks following the shutdown brought uncertainty, positive economic indicators followed. To wit, job growth accelerated,unemployment declined, third-quarter GDP far exceeded expectations, fourth quarter consumption improved, and arguably, the best surprise ofall: Congress passed and the President signed the Bipartisan Budget Act of 2013 on December 26th. This pushed the January 15thbudgetdeadline out by two years, leaving the debt limit as the only remaining hurdle in early 2014.The stock market responded well to the positive economic news and the two-year reprieve from another potential budget standoff. The S&P 500,after reaching a low of 1655 during the 17-day shutdown, climbed steadily higher to close the year at 1848, a trough-to-peak rise of 11.7%. Thebond market, however, did not fare as well. The consistent flow of better-than-expected economic data caused bond investors to become evermore concerned about the end of Quantitative Easing (QE). Uncertainty prevailed until December 18th, when the Federal Open Market Committee(FOMC) announced QE tapering would begin in January 2014. The U.S. Treasury 10-year bond yield, after achieving a low of 2.50% in October,climbed to 3.03% at year end.
PARS: County of Contra CostaDISCUSSION HIGHLIGHTSQuarterly Economic Highlights:GDP rose at an annual 4.1% rate in the third quarter. Over the past seven years, this is only the second quarter that has posted growthexceeding 4%.Job growth was favorable over the quarter. Non-farm job growth averaged 176,667 over the quarter, a slight improvement over the167,333per month average in the third quarter. Favorable job growth helped push unemployment down from 7.2% at the end of the third quarter, to6.7% at year end. Unemployment at the end of 2012 was 7.8%Consumption, as measured by retail sales, expanded over the quarter.After achieving 0.1% growth in September, month-to-month retailsales moved to +0.6% in October and +0.7% in November.Inflation remained low. CPI continued to ease in the second half of 2013, falling -0.3% in the three months through November. Year overyear CPI through November was 1.2%.
PARS: County of Contra CostaDISCUSSION HIGHLIGHTSMarket overview/Performance DiscussionTotal PlanThe County of Contra Costa OPEB Plan returned 4.41% in the fourth quarter, which outpaced the County’s Plan benchmark return target of3.89%. The performance was supported mainly by large cap equity, global equity, and international equity segments. Additionally, theAlternative asset investments, REIT equity, and domestic fixed incomesegments also outperformed their primary benchmarks, but added onlya modest positive contribution to Plan performance. Mid-cap equity and small cap equity slightly underperformed their benchmark targets, butonly detracted modestly from Plan performance due to an underweight in both categories.Domestic EquityThe fourth quarter offered strong returns for domestic equity market investors. With the economy continuing to show gains in jobs, combinedwith continued growth from the housing market, and an increase in manufacturing activity, the market responded positively. Other factorsaiding the market rally were: A third quarter GDP figure of 4.1%, the Federal Reserve’s announcement that they wouldgraduallyretreat fromtheir bond buying program, and a bipartisan budget deal in Washington DC. In the quarter, all sectors posted positive returns. Leadingsectors included consumer discretionary (+10.81%), technology (+13.26%), industrials (+13.53%) and materials (+10.66%), while Investorscontinued to turn their backs on the higher dividend yield oriented sectors of telecommunications (+5.47%) and utilities (+2.79%). Energy(+8.35%) and consumer staples (+8.66%) lagged the S&P500 benchmark return.The Plan’s large cap funds returned 10.62% in the quarter, which outperformed the Russell 1000 Index return of 10.23%.The Sentinel Common Stock Fund returned 9.18% in the quarter, which underperformed the benchmark. The Fund ranked in the 70thpercentile of the Morningstar Large Cap Blend Universe.The Columbia Contrarian Core Fund beat its benchmark with a 10.51% return. The Fund ranked in the 28thpercentile of theMorningstar Large Cap Blend UniverseThe Harbor Capital Appreciation Fund returned 11.94% in the quarter, which outperformed the Russell 1000 Growth Index’s return of10.44%. The Harbor Fund ranked in the 12thpercentile of the Morningstar Large Cap Growth Universe.The T. Rowe Price Growth Stock Fund returned 11.97% in the quarter, which exceeded the Russell 1000 Growth Index. The Fundranked in the 11th percentile of the Morningstar Large Cap Growth Universe.
PARS: County of Contra CostaDISCUSSION HIGHLIGHTSDomestic Equity (Cont.)The T. Rowe Price Equity Income Fund returned 8.73%, which ranked in the 70thpercentile of the Morningstar Large Cap ValueUniverse, and underperformed the Russell 1000 Value Index return of 10.01%.The Loomis Sayles Value Fund posted a 10.87% return which bested the Russell 1000 Value Index, and ranked in the 13thpercentileof the Morningstar Large Cap Value Universe.Small cap and mid-cap equity shares lagged large cap stocks in the quarter. For small cap equity, however, the slight quarterly lag was notenough to dethrone the segment as the category leader for the Plan, with a total return for the Russell 2000 Index of 38.82% in 2013. Both smallcap and mid cap stocks in the quarter were helped by industrial, financial, and consumer discretionary sectors. These cyclical sectors reactedfavorably to the continued positive economic statistics on employment and GDP.The mid-cap equity segment returned 7.59% in the quarter, which underperformed the Russell Mid-Cap Equity return of 8.39%The TIAA-CREF Mid-Cap Value Fund returned 8.49% in the quarter, which was slightly under the Russell Mid-Cap Value Indexreturn of 8.56%. The Fund ranked in the 59thpercentile of the Morningstar Mid-Cap Value Universe of managers.The Nationwide Geneva Mid-Cap Growth Fund posted a 6.78% return, which ranked in the 85thpercentile of Morningstar’s Mid-CapGrowth Manager Universe. The Fund underperformed the Russell Mid-Cap Growth Index return of 8.23%.The small cap equity segment returned 8.68% in the quarter, which was in-line with the Russell 2000 Index return of 8.72%.The T. Rowe Price New Horizons Fund returned 8.70%, and outperformed the Russell 2000 Growth Index return of 8.17%. Thisperformance ranked in the 36thpercentile of small cap growth managers as measured by Morningstar.The Columbia Small Cap Value Fund II return of 8.63% underperformed the Russell 2000 Value Index’s return of 9.30%. Thisranked in the 64thpercentile of Morningstar’s Small Cap Value Universe.Real EstateREIT equities capped off a sub-par year, with a fourth quarter decline as the Wilshire REIT Equity Index was off -0.82%. REIT performance hasbeen under pressure for the majority of the year due to valuation concerns, as well as the impact of rising interest rates. With economic growthestimated at a 3% GDP level, the U.S. Economy should provide some support for REITs, however there are select sub-industries
DISCUSSION HIGHLIGHTSReal Estate (Cont.)Such as health care REITs, malls, student housing, apartments and technology data centers that could face pressures over the near-term.The Nuveen Real Estate Securities Fund returned -1.00% in the quarter which underperformed the Wilshire REIT Index -0.82%. The Fundplaced in the 77thpercentile of the Morningstar Real Estate Manager’s Universe.Global/International EquityDeveloped international equity markets were reasonably strong in the fourth quarter, as witnessed by the MSCI-EAFE Index’s return of 5.72%. Every sector within the EAFE benchmark was positive, with Europe being the strongest region (MSCI Europe +8%). Here in, Germany (+13.3%), Spain (+11.2%), and the United Kingdom (+7.41%) were top contributors. This performance signals that the continent continues toemerge from a very long recession. Emerging market performance was less impressive. While some nations that maintain strong current account deficits posted reasonably attractive returns, other nations which run current account deficits, like Brazil (-5.4%) and Turkey (-14.1%), dragged down the benchmark.The Plan’s international/global equity segment returned 7.04% in the quarter.This return underperformed the MSCI-ACWI Index (+7.32%),but outperformed the MSCI-EAFE Index (+5.72%).The Dodge & Cox International Stock Fund’s 7.82% return outperformed the MSCI-EAFE Index in the quarter, and ranked in the 11thpercentile of the Foreign Large Blend Universe as measured by Morningstar.The Nationwide Bailard International Equity Fund registered a 8.59% return in the fourth quarter, and outperformed the MSCI-EAFE Index.The Fund ranked in the 6thpercentile of the Morningstar Foreign Large Blend Universe.The MFS International Fund’s return of 3.21% lagged the index and the peer group in the quarter. The Fund ranked in the 85thpercentile forforeign large cap growth managers as measured by Morningstar.The Templeton Global Opportunities Fund’s return of 8.44% in the quarter exceeded the MSCI-ACWI benchmark by 1% and ranked in the25thpercentile of the Morningstar World Stock Index Universe.The Schroder Emerging Market Equity Fund (+1.94%) ranked in the 57thpercentile of emerging market equity managers, and outperformedthe MSCI Emerging Market Index return of 1.83%.PARS: County of Contra CostaDISCUSSION HIGHLIGHTS
DISCUSSION HIGHLIGHTSFixed IncomeThe BC Aggregate Index returned −0.14% for the fourth quarter, as investment-grade corporate bonds produced the best returns with a 1.1% gain, while U.S. Treasuries returned −.75% and agency mortgage-backed securities returned −0.42%. Interest rates continued to be volatile in the fourth quarter, driven by uncertainty over both fiscal and monetary policy, as-well-as indications of more rapid economic growth. After a politically damaging government shutdown in October, Congress quickly passed a budget agreement in December to avoid another shutdown early in the new year. The resulting federal budget agreement is expected to have a slightly less negative impact on GDP in 2014, although the Federal debt ceiling will need to be raised again, (perhaps as soon as March), providing another potential flash point. Uncertainty over monetary policy also contributed to volatility as the Fed finally took the first step toward ending their bond purchase program after months of uncertainty. On December 18th,the FOMC decided to reduce the pace of its asset purchases modestly, from $85 billion per month to $75 billion, which marked the beginning of the end of this previously unlimited program. Despite the announced reduction in bond purchases, the Fed continues to emphasize that there is no pre-determined path for asset purchases, and that future decisions regarding the pace remain dependent upon their outlook for the labor market and inflation. The Fed’s decision to scale back their bond purchases caused interest rates to increase across the curve in the quarter, although the short end continues to be anchored by the Fed’s commitment to keep the fed funds rate unchanged until the labor market shows substantial improvement. The largest rate increases came in the middle of the curve, where the 7-year yield rose 45 basis points, while the 30-year increased 28 basis points, and the 2-year climbed only 6 basis points. As a result, the only positive returns for Treasuries this quarter came from short-term U.S. Treasury bills, which had small positive returns, and the 2-year Treasury which gained 0.08%. Returns beyond the 2-year were all negative, starting with the 3-year Treasury return of −0.04% and ending with the 30-year, which returned −3.6%.The Plan’s fixed income segment returned 0.27% in the quarter, which exceeded the Barclays Aggregate return of -0.14%. The separately managed fixed income portfolio slightly outperformed the BC Aggregate, returning 0.25% in the quarter.The Pimco Total Return Bond Fund gained -0.03% in the quarter which placed it in the 63rdpercentile of Morningstar’s Intermediate-TermBond Universe. The Fund outperformed the BC Aggregate Index.The Pimco High Yield Fund returned 2.98% in the quarter which was slightly under the BofA Merrill Lynch U.S. High Yield, BB-B Index returnof 3.15%. The Fund placed in the 67thpercentile of Morningstar’s High Yield Bond UniversePARS: County of Contra Costa
DISCUSSION HIGHLIGHTSAlternative InvestmentsThe alternative investment segment returned 2.94% in the fourth quarter, which was ahead of the Hedge Fund Research InstituteMarket Defensive Index return of 2.24%.The Arbitrage Fund returned 0.60% in the quarter which ranked in the 64thpercentile of Morningstar’s Market Neutral Universe.The JP Morgan Research Market Neutral Fund returned 0.92%, which placed the Fund in the 52nd percentile of the MorningstarMarket Neutral Universe.The Eaton Vance Global Macro Absolute Return Fund posted a 1.04% return, which placed in the 60thpercentile of the MorningstarNon-Traditional Bond Universe.The AQR Managed Futures Fund’s return of 7.42% ranked in the 7thpercentile of Morningstar’s Managed Futures Fund Universe.PARS: County of Contra Costa
PARS: County of Contra CostaDISCUSSION HIGHLIGHTSAsset Allocation/Portfolio TransitionsSeveral minor portfolio transitions took place in the quarter:The mid-cap equity allocation was reduced by 1%, with the proceeds invested in the two large cap core managersDomestic fixed income was reduce by 2% in the quarter. We increased the alternative allocation by 1%, and we increased the allocation tothe international “developed” equity managers by 1%. In an equity marketenvironment where all domestic equity indices appreciated over30% in 2013, international equity markets look relatively more attractive. Over the past two quarters, we have increased our allocation todeveloped international equity managers by a little over 3%.
INVESTMENT STRATEGY As of December 31, 2013Tactical Asset Allocation Asset Class% Portfolio WeightingRationaleTargetCurrent PortfolioOver/Under Weighting Cash1.0%1.00% -Fixed Income38.0%37.5% -.5%We decreased the fixed income allocation by 2% in the quarter, moving it to an underweight. Our forecast for fixedincome returns range between 2-3% for intermediate-term bonds over the next three to five years.High Yield0.00%1.0% +1%We continue to maintain a modest allocation to high yield. We believe there is enough cushion to absorb a modestincrease in interest rates. We anticipate default rates to remain low.Alternatives10.0%12.0% +2%We increased our allocation to alternatives in the quarter. Alternatives appear modestly more attractive than fixedincome.Real Estate (REITS)4.0%1.5% -2.5%We continue to maintain an underweight to REITs due to concerns about valuation, as well as the impact on REITsdue to a rise in interest rates.Global Equity7.0%8.0% +1%While challenges persist in global equity markets, stocks should be supported by modest growth in the globaleconomy. U.S. and Europe appear to be the two areas where fundamentals are the strongest. Emerging marketsare struggling to regain traction.International (Developed)9.0%8.0% -1%We continue to increase our allocation to developed international equity markets. Currency weakness may impacttotal returns for some international markets. The prognosis for a European recover is encouraging. Japan may beready to take a pause, as the market digests a VAT tax being established in April. The MSCI-EAFE Index trades ata 14X PE ratio, while offering a 3.0% dividend yield.International (Emerging)0.0%2.0% +2%Current valuations compel us to maintain a position in emerging market equities, but numerous challenges existthroughout the various emerging market regions: emerging Asia, emerging Europe, and Emerging Latin America.Rising rates of inflation may compel EM central banks to raise interest rates, which could slow growth.Total Domestic Equity31.0%30.0% -1%Large Cap17.0%19.0% +2%The large cap equity allocation is still an “overweight” in the Plan. Valuations are becoming stretched after a yearthat has appreciated by 32% and earnings only grew at roughly 7%. We find domestic large cap equities to be moreattractive than small cap or mid-cap equities.Mid Cap6.0%5.0% -1%We moved to an underweight position in mid-cap equities, as the Russell Mid-cap Index currently trades at a 21X PEratio. The Mid-cap Growth Index is at a 24X PE ratio.Small Cap8.0%6.0% -2%We are underweight small cap stocks. Valuations at 20X next year’s earnings, appear to be overvaluedPARS: County of Contra Costa
PARS: County of Contra CostaBeginning Value119,177,059.08 Net Contributions/Withdrawals 4,780,957.26 Fees Deducted -52,725.56 Income Received 2,698,608.36 Market Appreciation 2,749,788.82 Net Change in Accrued Income 55,198.42Ending Market Value129,408,886.38Investment SummaryFourth Quarter 2013
PARS: County of Contra Costa9/30/2013 9/30/2013 12/31/2013 12/31/2013 TargetAsset Allocation Market Value % of Total Market Value % of Total AllocationLarge Cap EquitiesColumbia Contrarian Core Z 4,450,538 3.7% 5,177,473 4.0% -Sentinel Common Stock I 3,858,703 3.2% 4,346,997 3.4%T. Rowe Price Equity Income Fund 2,392,531 2.0% 2,581,110 2.0% -Loomis Sayles Value Fund 3,551,993 3.0% 3,896,009 3.0% -Harbor Capital Appreciation Instl 3,605,506 3.0% 4,191,318 3.2% -T. Rowe Price Growth Stock Fund 3,622,256 3.0% 4,189,819 3.2% -Total Large Cap Equities 21,481,528 18.1% 24,382,726 18.9% 17.0%Range Range 13-32%Mid Cap EquitiesTIAA-CREF Mid-Cap Value Instl 3,286,249 2.8% 2,916,824 2.3% -Nationwide Geneva Mid Cap Growth Fund 3,926,845 3.3% 3,544,222 2.7% -Total Mid Cap Equities 7,213,094 6.1% 6,461,045 5.0% 6.0%Range Range 2-10%Small Cap EquitiesColumbia Small Cap Value Fund II 3,332,511 2.8% 3,531,263 2.7% -T. Rowe Price New Horizons Fund 3,931,605 3.3% 4,176,488 3.2% -Total Small Cap Equities 7,264,116$ 6.1% 7,707,751$ 6.0% 8.0%Range Range 4-12%International Nationwide Bailard Intl Equities Fund 2,705,177 2.3% 3,601,229 2.8% -Dodge & Cox International Stock Fund 3,119,768 2.6% 4,235,835 3.3% -MFS International Growth Fund 2,092,406 1.8% 2,602,383 2.0% -Schroder Emerging Market Equity 2,403,759 2.0% 2,596,288 2.0% -Total International 10,321,111$ 8.7% 13,035,735$ 10.1% 9.0%Range Range 4-16%GlobalTempleton Global Opportunities A LW 9,529,315 8.0% 10,459,801 8.1% -Total Real Estate 9,529,315$ 8.0% 10,459,801$ 8.1% 7.0%Range Range 4-12%Real EstateNuveen Real Estate Secs I Fund 1,750,786 1.5% 1,925,424 1.5% -Total Real Estate 1,750,786$ 1.5% 1,925,424$ 1.5% 4.0%Range Range 0-8%Asset AllocationPeriod Ending December 31, 2013
PARS: County of Contra Costa9/30/2013 9/30/2013 12/31/2013 12/31/2013 TargetAsset Allocation Market Value % of Total Market Value % of Total AllocationFixed IncomeCore Fixed Income Holdings 38,491,778$ 32.4% 39,980,756 31.0% -PIMCO Total Return Instl Fund 7,223,936 6.1% 7,091,421 5.5% -PIMCO High Yield Instl 1,195,818 1.0% 1,282,540 1.0% -Total Fixed Income 46,911,531$ 39.4% 48,354,718$ 37.5% 38.0% Range Range 30-50%AlternativesAQR Managed Futures I $4,186,273 3.5% 4,868,150 3.8% -Arbitrage I $2,433,486 2.0% 3,196,528 2.5% -Eaton Vance Glbl Macro Abs Ret I $4,132,183 3.5% 4,797,259 3.7% -JP Morgan Research Market Neutral I $2,432,194 2.0% 2,570,361 2.0% -Total Alternatives 13,184,136$ 11.1% 15,432,298$ 12.0% 10.0% Range Range 5-20%CashMoney Market 1,270,369$ 1.1% 1,342,939 1.0% -Total Cash 1,270,369$ 1.1% 1,342,939$ 1.0% 1.0%Range Range 0-5%TOTAL 118,925,985$ 100.0% 129,102,437$ 100.0% 100.0%
Inception Date: 02/01/2011* Benchmark from February 1, 2011 to June 30, 2013: 18% Russell 1000 Index, 6% Russell Midcap Index, 8% Russell 2000 Index, 8% MSCI AC World ex US Index, 10% MSCI EAFE Index, 45% Barclays Aggregate Index, 4% DJ Wilshire REIT Index, 1% Citigroup 3 Month T-Bill Index. From July 1, 2013: 17% Russell 1000 Index, 6% Russell Midcap Index, 8% Russell 2000 Index, 7% MSCI AC World ex US Index, 9% MSCI EAFE Index, 38% Barclays Aggregate Index, 4% DJ Wilshire REIT Index, 10% HFRI Fund of Funds Market Defensive Index, 1% Citigroup 3 Month T-Bill IndexReturns are gross-of-fees unless otherwise noted. Returns for periods over one year are annualized. The information presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank guarantee, and may lose value.PARS: County of Contra CostaSector 3 Months 1 Year 2 YearsInception to Date (35 Months)Cash Equivalents .00 .02 .02 .02 iMoneyNet, Inc. Taxable .00 .00 .00 .00Fixed Income ex Funds .25 -1.40 1.96 4.18Total Fixed Income .27 -1.21 2.82 4.33 BC US Aggregate Bd Index -.14 -2.02 1.06 3.33Total Equities 8.46 27.74 22.36 12.17Large Cap Funds 10.62 34.81 26.09 14.51 Russell 1000 Index 10.23 33.11 24.49 15.86Mid Cap Funds 7.59 31.59 22.33 13.20 Russell Midcap Index 8.39 34.76 25.71 15.52Small Cap Funds 8.68 43.94 28.89 17.43 Russell 2000 Index 8.72 38.82 27.09 16.26REIT Funds -.30 1.76 9.43 7.44 Wilshire REIT Index -.82 1.89 9.45 8.37International Equities 7.04 19.49 20.40 7.50 MSCI EAFE Index 5.72 22.79 20.03 7.55 MSCI EM Free Index 1.83 -2.62 7.29 -1.20 MSCI AC World Index 7.32 22.84 19.42 9.44Alternatives 2.94-100.00 -100.00 -100.00 HFRI FOF Market Def Index 2.24 .72 -.48 -2.45Total Account Net of Fees 4.41 12.97 12.43 7.66 County of Contra Costa* 3.89 12.55 11.88 8.26Selected Period PerformancePARS/COUNTY OF CONTRA COSTA PRHCPAccount 6746038001Period Ending: 12/31/2013
PARS: County of Contra Costa3-Month YTD 1-Year 3-Year 5-YearFund Name Inception Return Rank Return Rank Return Rank Return Rank Return RankSentinel Common Stock I (7/13) 9.18 70 31.04 61 31.04 61 15.30 41 17.91 29Columbia Contrarian Core Z (7/13) 10.51 28 35.73 17 35.73 17 16.86 12 20.54 7T. Rowe Price Equity Income 8.73 70 29.75 69 29.75 69 14.73 46 16.92 30Harbor Capital Appreciation Instl 11.94 12 37.66 17 37.66 17 17.02 16 20.47 23Loomis Sayles Value Fund (7/11) 10.87 13 35.54 14 35.54 14 16.39 17 16.23 44T. Rowe Price Growth Stock 11.97 11 39.20 12 39.20 12 17.91 9 22.39 12Idx: Russell 1000 10.23 -- 33.11 -- 33.11 -- 16.30 -- 18.59 --TIAA-CREF Mid-Cap Value Instl 8.49 59 32.55 71 32.55 71 14.78 48 20.28 47Idx: Russell Mid Cap Value 8.56 -- 33.46 -- 33.46 -- 15.97 -- 21.16 --Nationwide Geneva Mid Cap Growth 6.78 85 30.57 81 30.57 81 13.90 51 20.97 46Idx: Russell Mid Cap Growth 8.23 -- 35.74 -- 35.74 -- 15.63 -- 23.37 --Columbia Small Cap Value II Z 8.63 64 40.14 20 40.14 20 16.16 21 19.76 52Idx: Russell 2000 Value 9.30 -- 34.52 -- 34.52 -- 14.49 -- 17.64 --T. Rowe Price New Horizons 8.70 36 49.11 10 49.11 10 22.70 1 29.05 1Idx: Russell 2000 Growth 8.17 -- 43.30 -- 43.30 -- 16.82 -- 22.58 --Dodge & Cox International Stock 7.82 11 26.31 8 26.31 8 8.71 18 16.58 5Nationwide Bailard Intl Eqs InSvc 8.59 6 21.68 28 21.68 28 7.48 37 12.49 42MFS International Growth I 3.21 85 13.84 79 13.84 79 6.80 55 14.15 40Templeton Global Opportunities A LW 8.44 25 25.75 48 25.75 48 11.24 41 14.11 70Idx: MSCI EAFE 5.71 -- 22.78 -- 22.78 -- 8.17 -- 12.44 --Idx: MSCI ACWI 7.31 -- 22.80 -- 22.80 -- 9.73 -- 14.92 --Schroder Emerging Market Equity (11/12) 1.94 57 -2.28 54 -2.28 54 -0.30 26 14.74 37Idx: MSCI Emerging Markets 1.54 -- -4.98 -- -4.98 -- -4.50 -- 12.08 --Nuveen Real Estate Secs Y -1.00 77 1.32 58 1.32 58 8.98 30 17.15 18Idx: Wilshire REIT -0.82 -- 1.89 -- 1.89 -- 9.38 -- 16.70 --Pimco Total Return Inst'l -0.03 63 -1.92 60 -1.92 60 4.08 32 6.91 36BarCap US Aggregate Bond -0.14 -- -2.02 -- -2.02 -- 3.26 -- 4.44 --Pimco High Yield Inst'l (2/12) 2.98 67 5.77 68 5.77 68 8.01 52 15.70 61Merrill Lynch US High Yield BB-B 3.15 -- 5.66 -- 5.66 -- 8.53 -- 16.42 --Arbitrage I (7/13) 0.60 64 1.15 67 1.15 67 2.10 30 3.59 26AQR Managed Futures (7/13) 7.42 7 9.40 6 9.40 6 1.80 1 -- --Eaton Vance Glbl Macro Abs Ret (7/13) 1.04 60 -0.24 58 -0.24 58 1.14 76 3.80 76JPMorgan Research Market Neutral Instl (7/13) 0.92 52 2.26 56 2.26 56 -0.22 74 1.64 30Data Source: Morningstar, SEI Investmentsbelieved accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value.Returns less than one year are not annualized. Past performance is not indicative of future returns. The information presented has been obtained from sourcesALTERNATIVE FUNDSREIT EQUITY FUNDSBOND FUNDSPARS/COUNTY OF CONTRA COSTAFor Period Ending December 31, 2013LARGE CAP EQUITY FUNDSMID CAP EQUITY FUNDSSMALL CAP EQUITY FUNDSINTERNATIONAL EQUITY FUNDS