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Discussion Highlights: Capital Growth (Custom) and Conservative Index Plus Asset Allocation—Capital Growth (Custom): • Allocation: 68.0%stocks (60-75%range), 29.4%bonds (20-40%range), 2.6%cash (0-20%range) Breakdown: Large cap 42.1%, mid-cap 4.8%, small cap 6.1%, international 14.0%, REIT's 1.1% Asset Allocation— Conservative Index Plus: Allocation: 14.9%stocks (5-20%range), 79.9%bonds (60-95%range), 5.2%cash (0-20%range) Breakdown: Large cap 7.5%, mid-cap 1.2%, small cap 2.5%, international 2.8%, REIT's .9% Performance (as of 11-30-2019;net fund fees, gross investment management fees): Capital Growth Conservative Index Plus • 3-month: 14.47% 5.02% • 1-year: 2.97% 4.59% Inception (07/2018): 4.17% 5.07% • Bonds: Bond yields have declined across the curve given policy response by the Fed as well as uncertain timeline of recovery Stocks: Significant volatility so far in 2020 due to Covid-19 with only modest losses year-to-date as a result of massive stimulus • Domestic markets: Large Cap outperformed more risky Mid and Small Cap stocks • International: Underperformed due to slower overall growth and relatively less stimulus 12-Month Changes Stocks: modestly underweight (Capital Growth: -200bp, Conservative: -10bp); Large Cap overweight relative to Small Cap • Bonds: overweight(Capital Growth: +440bp, Conservative: -10bp) Cash: underweight(Capital Growth: -240bp, Conservative: +20bp) Outlook 2020 • Covid-19, bankruptcy, and election uncertainty likely to cause continued market volatility Earnings for 1H20 significantly impacted with 2H20 only modest recovery; FY20 est. S&P 500 earnings -26% • 2020 elections: Presidency and Congress • Geopolitical uncertainty: China, Middle East, Russia, Trump PARS: City of Pleasanton 2 CAPITAL MANAGEMENT