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HIGHMARK° CAPITAL MANAGEMENT WHY THE PARS DIVERSIF6ED MODERATE PORTFOL0? Comprehensive 5,oluKjon HighMark® Capital Management, Inc.'s (HighMark) diversified investment portfolios are designed to balance return expectations with risk tolerance. {fey 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 DiAlgenct- 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 lnvest;ri zent 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. INVESTMENT OBJECTIVE Efficient Frontier To provide current income and moderate capital appreciation. Capital Appreciation It is expected that dividend and a Balanced interest income will comprise a W Moderately Conservative significant portion of total return, ca although growth through capital Conservative appreciation is equally important Risk (Standard Deviation) ASSET ALLOCATION iN - MODERATE PORTFOLIO Strategic Range Policy Tactical Equity 40-60% 50% 50% Fixed Income 40-60% 45% 49% Cash 0-20% 5% 1% ANNUALIZED TOTAL RETi U RNS Emross of beddednvestment Fund Fees) Management Fees, but Net of HighMark Pius Composite (Acbve) �-� ^� � Index Plus Composite (Passive) Current Quarter* 4.62% Current Quarter* 3.89% `: Blended Benchmark* ** 4.08% Blended Benchmark*** 4.08% Year To Date* 3.24% ' Year To Date's 2.92% Blended Benchmark*,** 3.19% Blended Benchmark*,** 3.19 i 1 Year 7.87% 1 Year 7.26% Blended Benchmark** 7.81% ~ - Blended Benchmark** 7.81 3 Year ------ - - _._.----- 6.29% 1 3 Year fi.09% .Blended Benchmark' 6.49% ^- Blended Benchmark** 6.49% 5 Year ^� 7.51%. 5 Year 7.24% Blended Benchmark** 7.60% Blended Benchmark** 7.60% 10 Year 7.11% 10 Year 7.01% Blended Benchmark** 7.30% Blended Benchmark** 7.30 * 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 SAFE (net), 33.50% BBG Barclays 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% BBG Barclays 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% BBG Barclays US Agg, and 5% FTSE 1 Mth US T -Bill. (Gross of Investment Management Fees, but Net of Embedded ANNUAL RETURNS Fund Fees) I-iighMark Plus Composite (Active) Inez Peas Composite (Passive). 2008 -22.88% -2009 2008 -18.14% 21.47% 2009 16.05% 2010 12.42% 2010 11.77% 2011 0.55% 2011 2.29% 2012 12,25%, 2012 10.91%11 2013 13.06% 201_3 12.7_9% 2014- ------------4.84% 2014 5.72% ' _ 2015 0.14% 2015 -0.52% 2016 6.45% ' 2016 7.23% 2017 13.19% 2017 11.59% 2018: -4.03%1 2018 -4.03% 2019 17.71% 2019 17.52% PORTFOLIO FANS HighMark ark P1us (Active) Plus (Passive) Composite Inception Date 10/2004 Composite Inception Date 05/2006 No of Holdings in Portfolio 19 No of Holdings in Portfolio 12