1. Keith Forslund, Senior Portfolio Manager
Natives of Kodiak
Shareholders Meeting
September 20, 2014
Presented by:
Keith Forslund, Senior Portfolio Manager
Highmark Capital Management, Inc. is a wholly owned subsidiary of MUFG Union Bank, N.A.

2. AGENDA Past Results Current Results Economic Outlook
Investment Forecast

3. CAPITAL MARKET REVIEW - August 31, 2014
Source: HighMark Capital Management and Thomson Datastream as of August 31, Performance longer than 1-year is annualized.

4. Natives of Kodiak Performance Average Annual Returns (8/31/14)
PAST RESULTS
Natives of Kodiak Performance
Average Annual Returns (8/31/14)
2 Years 3 Years 4 Years 5 Years
Permanent Fund % % % %
Blended Benchmark** % % % %
**75% MSCI All Country World Index 23% BC Intermediate US Govt/Credit Index 2% Citigroup 3 Mo T-Bill Index

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

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

7. 30-Year Treasuries – Price Changes Last 30 Years
BOND MARKET
30-Year Treasuries – Price Changes Last 30 Years
September 2, 1984 – August 31, 2014
Source: Bloomberg

8. 30-Year Treasuries – Price Changes Last 5 Years
BOND MARKET
30-Year Treasuries – Price Changes Last 5 Years
September 2, 2009 – August 31, 2014
Source: Bloomberg

9. Natives of Kodiak Account
CURRENT RESULTS
Natives of Kodiak Account
YTD Months
Permanent Fund % % %
Blended Benchmark** % % %
**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

10. CURRENT RESULTS
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

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

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

13. HighMark Capital Management, Inc
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 All rights reserved.