Presented by:
Keith Forslund, Senior Portfolio Manager
Highmark Capital Management, Inc. is a wholly owned subsidiary of MUFG Union Bank, N.A.

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Total Return
S&P 500
NASDAQ Composite
Non-US (EAFE)
Emerging Markets
REITS
High Yield Bonds
BarCap Aggregate Bond
Cash (T-Bills) Euro: .23
1-Month 3-Month 6-Month YTD 1-Year 3-Year 5-Year 10-Year
4.00
4.68
8.84
9.89
25.25
20.61
16.88
8.38
4.99
-0.15
8.30
-1.13
6.72
1.57
10.48
2.93
29.25
16.92
22.46
11.87
19.15
8.69
10.63
7.50
2.29
3.27
1.51
1.10
0.00
7.18
4.41
1.01
0.90
0.01
14.80
10.95
20.40
4.70
8.24
11.06
20.09
24.01
14.91
18.98
2.87
2.73
0.02
5.72
4.80
0.03
10.51
5.66
0.04
10.31
2.92
0.06
12.07
4.49
0.08
12.52
9.16
8.50
4.73
1.47
Russell Value-Growth
S&P 500-Russell 2000
US Dollar (TWI)
CRB Commodity Index
WTI Oil
Gold
-0.91
-0.96
0.87
-0.64
-0.38
0.15
-0.42
0.83
1.94
-5.68
-5.36
3.48
2.50
8.90
1.79
-6.04
-4.88
-2.85
0.87
8.13
1.69
1.73
-0.31
6.63
-1.86
7.56
1.85
-1.29
-9.37
1.62
1.61
5.13
-7.92
3.29
-7.85
-10.99
-1.20
-0.15
1.07
4.49
6.94
6.31
Source: HighMark Capital Management and Thomson Datastream as of August 31, 2014. Performance longer than 1-year is annualized.
-0.97
-0.99
-0.93
6.46
8.80
12.12

2 Years 3 Years 4 Years 5 Years
Permanent Fund 13.22% 11.66% 11.92% 10.57%
Blended Benchmark** 13.77% 11.10% 11.18% 9.87%
**75% MSCI All Country World Index 23% BC Intermediate US Govt/Credit Index 2% Citigroup 3 Mo T-Bill Index

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Stock market returns since bottom (3/6/2009)
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US Stocks > 200%, including dividends
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Developed International +150%, including dividends
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Emerging Markets +130%, including dividends
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Worldwide economic conditions stabilized but slow growth remained
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Sovereign debt crisis ebbing
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Real estate values stabilizing
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Banks reluctant to lend
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Corporate earnings strong

S&P 500 Large Cap Index
– Price Changes Last 5 Years
September 2, 2009 – August 31, 2014
Source: Bloomberg

30-Year Treasuries
– Price Changes Last 30 Years
September 2, 1984 – August 31, 2014
Source: Bloomberg

30-Year Treasuries
– Price Changes Last 5 Years
September 2, 2009 – August 31, 2014
Source: Bloomberg

YTD
Permanent Fund 6.58%
Blended Benchmark** 6.07%
12 Months 2013
16.07% 11.08%
16.40% 11.23%
**65% MSCI All Country World Index 23% BC Intermediate US Govt/Credit Index 2% Citigroup 3 Mo T-Bill Index
10% HFRI FOF Market Defensive Index
As of 8/31/14

• US stock market rallying on Central Bank activities, improving economic conditions
• Foreign stock markets are improving
• Bond market declining (yields rising from historic lows)
• Dollar up on global anxiety (hurts foreign investments)
• Economic Concerns
– Federal Reserve bond purchase uncertainty
– Consumer spending
– Economic data indicate slow global growth
– Geopolitical concerns
• Economic Positives
– Unemployment improving
– Corporate earnings strong
– Strong corporate balance sheets
– Pent up demand
– Housing starts deficit
– Fiscal / monetary stimulus

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Economy
• Consumer
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Housing
• Inflation
• Global Economy(non U.S.)
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Uncertainties
Improving growth
Less of a concern
(unemployment, spending, reducing debt)
Improving
Not an issue through 2014 + foreseeable future
Europe - A Concern
Unwinding global government intervention, underemployment, Eurozone stability,
Federal Reserve actions

• Corporate earnings strength / peaking margins?
• Limited inflationary pressures
• Stock market valuation is reasonable in a low interest rate environment
• Stocks favored over bonds

HighMark Capital Management, Inc. (HighMark), an SEC-registered investment adviser, is a subsidiary of MUFG Union Bank, N.A (MUB). HighMark manages institutional separate account portfolios for a wide variety of for-profit and non-profit organizations, public agencies, public and private retirement plans, and personal trusts of all sizes. It may also serve as sub-adviser for mutual funds, common trust funds, and collective investment funds. MUB, a subsidiary of MUFG Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does not guarantee of future results. Individual account management and construction will vary depending on each client’s investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any other federal government agency, are NOT deposits of or guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal.
Benchmarks presented are used for comparative purposes only and is provided to represent the market conditions during the period shown. Benchmark returns do not reflect the deduction of advisory fees, custody fees, transaction costs, or other investment expenses, but the returns assume the reinvestment of dividends and other earnings. An investor cannot invest directly in an unmanaged index.
Some information provided herein was obtained from third party sources deemed to be reliable; HighMark and its affiliates make no representations or warranties with respect to the timeliness, accuracy, or completeness of the information provided. Any information provided is subject to change without notice.
© HighMark Capital Management, Inc. 2014. All rights reserved.