Reso 2021-087 Investment Guidelines Post Employment Benefits Trust

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Investment Authority: Except as otherwise noted, the Trustee, US Bank, has delegated investment authority to HighMark Capital Management, an SEC -registered investment adviser. Investment Manager has full investment discretion over the managed assets in the account. Investment Manager is authorized to purchase, sell, exchange, invest, reinvest and manage the designated assets held in the account, all in accordance with account's investment objectives, without prior approval or subsequent approval of any other party(ies). Investment Objectives and Constraints The goal of the Plan's investment program is to provide a reasonable level of growth which, will result in sufficient assets to pay the present and future obligations of the Plan. The following objectives are intended to assist in achieving this goal: • The Plan should seek to earn a return in excess of its policy benchmark over the life of the Plan. • The Plan's assets will be managed on a total return basis which takes into consideration both investment income and capital appreciation. While the Plan Sponsor recognizes the importance of preservation of capital, it also adheres to the principle that varying degrees of investment risk are generally rewarded with compensating returns. To achieve these objectives, the Plan Sponsor allocates its assets (asset allocation) with a strategic perspective of the capital markets. Investment Time Horizon: 6-8 years Anticipated Cash Flows: Assets in the Plan will seek to mitigate the impact of future rate increases from CaIPERS. Typically increases in rates come with a one-year advance warning, however this Plan may transfer assets to CalPERS at any time. Investment Objective: The primary objective is to generate a reasonable level of growth. The assets in this Plan will eventually be used to fund Pension Plan obligations for assets managed in the CalPERS Trust. Risk Tolerance: Moderate The account's risk tolerance has been rated moderate, which demonstrates that the account can accept price fluctuations to pursue its investment objectives. City of San Leandro Employee Benefit Fund Pension Plan Investment Guidelines Document — HighMark Capital Management, Inc. (v. 05/06/2021 - RY) 3