UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-05059
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HighMark Funds
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(Exact name of registrant as specified in charter)
350 California Street, Suite 1600
San Francisco, CA 94104
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(Address of principal executive offices) (Zip code)
John M. Loder, Esq.
Ropes & Gray LLP
Three Embarcadero Center
San Francisco, CA 94111
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(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-582-4734
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Date of fiscal year end: July 31, 2012
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Date of reporting period: January 31, 2012
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
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JANUARY 31, 2012
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HIGHMARK
The smarter approach to investing.
EQUITY
ASSET ALLOCATION
FIXED-INCOME
SEMI-ANNUAL
------------------
REPORT
[HIGHMARK FUNDS LOGO OMITTED](R)
TABLE OF CONTENTS
management's discussion of fund performance
balanced fund ...................................................... 2
cognitive value fund ............................................... 4
enhanced growth fund ............................................... 6
equity income fund ................................................. 8
geneva mid cap growth fund ......................................... 10
geneva small cap growth fund ....................................... 12
international opportunities fund ................................... 14
large cap core equity fund ......................................... 16
(formerly core equity fund)
large cap growth fund .............................................. 18
large cap value fund ............................................... 20
nyse arca tech 100 index fund ...................................... 22
small cap core fund ................................................ 24
(formerly small cap advantage fund)
value momentum fund ................................................ 26
tactical capital growth allocation fund ............................ 28
(formerly capital growth allocation fund)
tactical growth & income allocation fund ........................... 30
(formerly growth & income allocation fund)
bond fund .......................................................... 32
california intermediate tax-free bond fund ......................... 34
national intermediate tax-free bond fund ........................... 36
short term bond fund ............................................... 38
wisconsin tax-exempt fund .......................................... 40
disclosure of fund expenses .............................................. 42
schedules of investments ................................................. 45
statements of assets and liabilities ..................................... 112
statements of operations ................................................. 124
statements of changes in net assets ...................................... 130
financial highlights ..................................................... 146
notes to financial statements ............................................ 157
fund information ......................................................... 170
service providers & board of trustees .................................... 176
This report and the financial statements contained herein are submitted for the
general information of HighMark Funds' shareholders. This report is not
authorized for distribution to prospective investors unless preceded or
accompanied by an effective prospectus.
Shares of HighMark Funds are not deposits or obligations of, or guaranteed by,
Union Bank, N.A. or any of its subsidiaries or affiliates. Such shares are also
not federally insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board, or any other agency. Investments in shares of mutual funds
involve risk, including the possible loss of principal. HighMark Funds
Distributors, LLC serves as Distributor for HighMark Funds and is not affiliated
with the Adviser of HighMark Funds, HighMark Capital Management, Inc., or with
Union Bank, N.A.
TOP TEN HOLDINGS
COMPANY* % OF
PORTFOLIO
PRAXAIR 3.6%
APPLE 3.3
EXXONMOBIL 3.1
DANAHER 2.8
WELLS FARGO 2.7
ECOLAB 2.2
ORACLE 2.1
US BANCORP 2.0
OCCIDENTAL PETROLEUM 2.0
COCA-COLA 1.9
FUND SECTORS
SECTOR % OF
PORTFOLIO
INFORMATION TECHNOLOGY 12.0%
FINANCIALS 10.7
ENERGY 10.4
INDUSTRIAL 9.7
CONSUMER STAPLES 9.5
CONSUMER DISCRETIONARY 9.4
HEALTH CARE 8.6
MATERIALS 7.2
REPURCHASE AGREEMENT 7.1
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS 4.1
MORTGAGE-BACKED SECURITIES 3.8
TELECOMMUNICATION SERVICES 2.7
ASSET-BACKED SECURITIES 1.7
MUNICIPAL BONDS 1.4
UTILITIES 1.4
FOREIGN GOVERNMENT 0.3
* EXCLUDES SHORT-TERM SECURITIES.
BALANCED FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Balanced Fund (the
"Fund") produced a total return of 2.59% (Class A Shares without load). In
comparison, the Fund's benchmarks, the unmanaged S&P 500 Index, the Barclays
Capital U.S. Aggregate Bond Index and the unmanaged blended index of 60% S&P 500
Index and 40% Barclays Capital U.S. Aggregate Bond Index, returned 2.71%, 4.25%
and 3.61%, respectively, for the same period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by challenging global
conditions and a slow-growth economic recovery. Concerns over the continuing
sovereign debt crisis in Europe, and fears of its potential impact in other
geographical regions, contributed to extreme volatility in financial markets
both in the United States and abroad. Investors dealt with structural market
imbalances, and consumers continued to deleverage across the globe. Despite
these challenges, signs of improvement did occur. The domestic unemployment rate
declined in five of the months of the reporting period, and housing prices
stabilized.
The sectors that contributed most to the Fund's equity performance were
materials, industrials and financials. The sectors that detracted most from the
Fund's performance were technology and health care.
Wells Fargo, filtration maker Donaldson Company, industrial supply company WW
Grainger, Sally Beauty and PetSmart were top contributors to the Fund's
performance. Health care company Davita and Internet technology company Riverbed
were also two of the Fund's largest performance detractors.
Unfortunately, the Fund was not able to overcome the above-mentioned drags on
performance, and the Fund's equity portion underperformed its benchmark for the
reporting period.
Early in the reporting period, bond yields in Italy and Spain reached new
post-euro highs above 7%, and the yield premium relative to Germany also reached
record levels. The European Central Bank began buying the sovereign debt of its
member countries, particularly Italy and Spain, in an attempt to decrease yields
and support financial markets. Corporate spreads widened, and a stock sell-off
ensued as a result. In December, the European Central Bank announced three-year
term funding for European banks, which once again led to a narrowing of spreads
and a stock market rally.
This volatility resulted in a flight to quality and significant outperformance
relative to shorter duration issues of both the 10-year and 30-year Treasury
bonds. The Fund's fixed income portion was overweight to corporate bonds, which
lagged Treasuries by 2.64%, as well as overweight to asset-backed securities.
The Fund's defensive nature and the shorter duration of its holdings detracted
from the Fund's performance, and the Fund's fixed income portion underperformed
its benchmark for the reporting period.
2 HIGHMARK(R) FUNDS
HIGHMARK BALANCED FUND
INVESTMENT OBJECTIVE
HIGHMARK BALANCED FUND SEEKS CAPITAL APPRECIATION AND INCOME; CONSERVATION OF
CAPITAL IS A SECONDARY CONSIDERATION.
[PHOTO OMITTED]
PORTFOLIO
MANAGER
DAVID GOERZ (1)
HIGHMARK CAPITAL
MANAGEMENT, INC.
[PHOTO OMITTED]
PORTFOLIO
MANAGER
KEN WEMER (1)
HIGHMARK CAPITAL
MANAGEMENT, INC.
[PHOTO OMITTED]
PORTFOLIO
MANAGER
JACK MONTGOMERY (1)
HIGHMARK CAPITAL
MANAGEMENT, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK BALANCED
FUND VERSUS THE S&P 500 INDEX, THE BARCLAYS CAPITAL U.S. AGGREGATE BOND INDEX,
AN UNMANAGED BLENDED INDEX OF 60% S&P 500 INDEX AND 40% BARCLAYS CAPITAL U.S.
AGGREGATE BOND INDEX AND THE MORNINGSTAR MODERATE ALLOCATION CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark 60/40 Hybrid Morningstar
Balanced of the Barclays Capital Moderate
Fund, Class A following S&P 500 U.S. Aggregate Allocation
Shares two indices: Index++ Bond Index++ Category
Jul-01 $ 9,450 $10,000 $10,000 $10,000 $10,000
Jul-02 $ 8,083 $ 8,810 $ 7,637 $10,753 $ 8,795
Jul-03 $ 8,660 $ 9,613 $ 8,450 $11,336 $ 9,464
Jul-04 $ 9,324 $10,565 $ 9,562 $11,884 $10,321
Jul-05 $10,170 $11,660 $10,906 $12,454 $11,571
Jul-06 $10,527 $12,109 $11,493 $12,636 $12,141
Jul-07 $11,699 $13,550 $13,346 $13,338 $13,633
Jul-08 $10,916 $12,967 $11,866 $14,158 $12,793
Jul-09 $ 9,993 $11,807 $ 9,498 $15,270 $11,286
Jul-10 $11,216 $13,250 $10,812 $16,630 $12,628
Jul-11 $12,618 $15,053 $12,937 $17,369 $14,384
Jan-12 $12,945 $15,597 $13,287 $18,107 $14,430
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
--------------------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR 10 YEAR EXPENSE EXPENSE
RETURN RETURN RETURN RETURN RETURN RATIO++ RATIO++
--------------------------------------------------------------------------------------------------------------------------
Fiduciary Shares 2.74% 3.56% 15.63% 2.65% 3.79% 1.54% 0.99%
--------------------------------------------------------------------------------------------------------------------------
Class A Shares 2.59% 3.31% 15.35% 2.40% 3.54% 1.79% 1.24%
--------------------------------------------------------------------------------------------------------------------------
Class A Shares w/load* -3.06% -2.40% 13.19% 1.25% 2.95% 1.79% 1.24%
--------------------------------------------------------------------------------------------------------------------------
Class B Shares 2.25% 2.61% 14.61% 1.79% 2.90% 2.29% 1.84%
--------------------------------------------------------------------------------------------------------------------------
Class B Shares w/load** -2.75% -2.39% 13.85% 1.43% 2.90% 2.29% 1.84%
--------------------------------------------------------------------------------------------------------------------------
Class C Shares 2.31% 2.70% 14.65% 1.79% 2.89% 2.29% 1.84%
--------------------------------------------------------------------------------------------------------------------------
Class C Shares w/load*** 1.31% 1.70% 14.65% 1.79% 2.89% 2.29% 1.84%
--------------------------------------------------------------------------------------------------------------------------
S&P 500 Index 2.71% 4.22% 19.24% 0.33% 3.52% -- --
--------------------------------------------------------------------------------------------------------------------------
Barclays Capital U.S. Aggregate
Bond Index 4.25% 8.66% 7.40% 6.70% 5.78% -- --
--------------------------------------------------------------------------------------------------------------------------
Blend of 60% S&P 500 Index and
40% Barclays Capital U.S. Aggregate
Bond Index 3.61% 6.31% 14.82% 3.28% 4.77% -- --
--------------------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 5.00%.
*** Reflects maximum CDSC of 1.00%.
(1) Mr. Goerz is responsible for asset allocation decisions; Mr. Wemer manages
the equity portion of the Fund's portfolio; Mr. Montgomery is responsible
for the management of the fixed income portion of the Fund's portfolio.
HIGHMARK(R) FUNDS 3
TOP TEN HOLDINGS
% OF
COMPANY* PORTFOLIO
NACCO INDUSTRIES, CL A 1.0%
CENTENE 1.0
UNISOURCE ENERGY 1.0
STONE ENERGY 0.9
1ST SOURCE 0.9
MTS SYSTEMS 0.9
PS BUSINESS PARKS REIT 0.9
BARRETT BUSINESS SERVICES 0.9
ASSURED GUARANTY 0.9
MISSION WEST PROPERTIES REIT 0.9
FUND SECTORS
% OF
SECTOR PORTFOLIO
FINANCIALS 23.9%
INDUSTRIAL 18.8
CONSUMER DISCRETIONARY 13.1
INFORMATION TECHNOLOGY 13.0
HEALTH CARE 6.5
MATERIALS 6.4
ENERGY 5.7
CONSUMER STAPLES 4.0
UTILITIES 4.0
REGISTERED INVESTMENT
COMPANIES 3.1
REPURCHASE AGREEMENT 1.1
TELECOMMUNICATION SERVICES 0.4
* EXCLUDES SHORT-TERM SECURITIES.
COGNITIVE
VALUE FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Cognitive Value Fund
(the "Fund") produced a total return of 1.87% (Class A Shares without load). In
comparison, the Fund's benchmark, the unmanaged S&P Small Cap 600/Citigroup
Value Index (the "Index"), returned 5.28% for the same period.
FACTORS AFFECTING PERFORMANCE
The Fund uses a Behavioral Ranking Model (BRM) (a composite of the Fund's factor
signals) to help it make stock selection decisions. The BRM continued to have
good results for the six-month period. Five of the six components added value
with the Hype and Earnings Sustainability factors doing the best, while the
Analyst Expectation Bias factor performing the least well.
The Fund's good BRM results translated into relative outperformance versus the
average small cap value mutual fund competitor in the Morningstar Small Value
universe, though by less than the Fund's managers would have hoped (2.10% for
the Fund, 0.61% for the average competitor). This was due to the fact that
during some months, other factors, unmeasured by the BRM and in some cases
quantitatively unmeasureable, significantly contributed to the performance of
competitors.
Although the Fund outperformed the average mutual fund competitor, the S&P Small
Cap 600/Citigroup Value Index performed even better. The primary cause of the
Index's outperformance was its greater weights in economic sectors with above
average performance, and its lesser weights in sectors that underperformed. For
example, the Index held less in Energy and Healthcare, the two worst performing
sectors, and more in Financials and Utilities, the best performing sectors for
the six-month period.
The Fund's management attempts to neutralize economic sector and sub-sector
weights and focuses on differentiating among stocks within each sector. The Fund
neutralizes its sector weights relative to the average of its competitors, but
not to the Index. While this keeps the Fund largely in line with competitors'
economic exposures, it can result in periods of substantial return deviation
from the Index, depending upon how closely the competitors' and the Index's
sector weights align.
The Fund remained underweighted to micro-cap stocks, holding 16% versus its
historical norm of 25%, which contributed to performance since micro-cap stocks
underperformed small cap stocks within the portfolio by -1.27% for the period.
Nevertheless, Fund management's outlook for micro-cap stocks remained positive,
and the portfolio managers continued to explore the possibility of adjusting the
Fund's micro-cap exposure.
4 HIGHMARK(R) FUNDS
HIGHMARK COGNITIVE VALUE FUND
INVESTMENT OBJECTIVE
HIGHMARK COGNITIVE VALUE FUND SEEKS LONG-TERM CAPITAL APPRECIATION.
[PHOTO OMITTED]
LEAD PORTFOLIO
MANAGER
THOMAS MUDGE
BAILARD, INC.
[PHOTO OMITTED]
PORTFOLIO
MANAGER
GEORGE Y. SOKOLOFF
BAILARD, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK COGNITIVE
VALUE FUND VERSUS THE S&P SMALLCAP 600/CITIGROUP VALUE INDEX AND THE MORNINGSTAR
SMALL VALUE CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark
Cognitive S&P SmallCap Morningstar
Value Fund, 600/Citigroup Small Value
Class A Shares Value Index++ Category
Jul-01 $ 9,446 $10,000 $10,000
Jul-02 $ 8,895 $ 9,115 $ 8,770
Jul-03 $ 9,674 $10,518 $ 9,955
Jul-04 $11,426 $12,763 $10,849
Jul-05 $14,092 $16,063 $12,094
Jul-06 $15,179 $17,174 $12,545
Jul-07 $16,929 $19,401 $13,960
Jul-08 $15,030 $17,241 $12,320
Jul-09 $11,668 $14,064 $10,138
Jul-10 $13,955 $16,639 $12,293
Jul-11 $17,311 $19,958 $14,766
Jan-12 $17,634 $21,012 $14,868
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
--------------------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR 10 YEAR EXPENSE EXPENSE
RETURN RETURN RETURN RETURN RETURN RATIO++ RATIO++
--------------------------------------------------------------------------------------------------------------------------
Fiduciary Shares 2.09% 6.25% 22.52% 0.92% 6.27%+ 1.34% 1.23%
--------------------------------------------------------------------------------------------------------------------------
Class A Shares 1.87% 5.92% 22.11% 0.58% 5.94%+ 1.59% 1.48%
--------------------------------------------------------------------------------------------------------------------------
Class A Shares w/load* -3.73% 0.13% 19.83% -0.55% 5.34%+ 1.59% 1.48%
--------------------------------------------------------------------------------------------------------------------------
Class C Shares 1.61% 5.27% 21.37% -0.04% 5.34%+ 2.09% 2.08%
--------------------------------------------------------------------------------------------------------------------------
Class C Shares w/load** 0.61% 4.27% 21.37% -0.04% 5.34%+ 2.09% 2.08%
--------------------------------------------------------------------------------------------------------------------------
Class M Shares 2.11% 6.36% 22.61% 0.97% 6.40% 1.09% 1.08%
--------------------------------------------------------------------------------------------------------------------------
S&P Small Cap 600/Citigroup
Value Index 5.28% 6.43% 23.79% 1.23% 7.16% -- --
--------------------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
+ The performance presented links the performance of Class M Shares from ten
years ago with the performance of Class A and Class C Shares on April 3,
2006 and Fiduciary Shares on July 3, 2006. Class M Share performance has
been adjusted to reflect higher expenses applicable to these Classes.
Without those adjustments, performance would be higher than that shown.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 5
TOP TEN HOLDINGS
% OF
COMPANY* PORTFOLIO
APPLE 9.0%
MICROSOFT 4.1
GOOGLE, CL A 3.4
INTERNATIONAL BUSINESS MACHINES 3.2
INTEL 2.6
QUALCOMM 2.6
ORACLE 2.4
CISCO SYSTEMS 2.0
COGNIZANT TECHNOLOGY SOLUTIONS, CL A 1.7
ACCENTURE, CL A 1.6
FUND SECTORS
% OF
SECTOR PORTFOLIO
INFORMATION TECHNOLOGY 85.9%
HEALTH CARE 7.5
CONSUMER DISCRETIONARY 3.8
REPURCHASE AGREEMENT 1.3
TELECOMMUNICATION SERVICES 0.8
REGISTERED INVESTMENT COMPANY 0.7
* EXCLUDES SHORT-TERM SECURITIES.
ENHANCED
GROWTH FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Enhanced Growth Fund
(the "Fund") produced a total return of 3.01% (Class A Shares without load). In
comparison, the Fund's benchmarks, the NASDAQ 100 Index and the S&P North
American Technology Sector Index, returned 5.02% and 3.89% respectively for the
same period.
FACTORS AFFECTING PERFORMANCE
The six-month reporting period was an extremely volatile time for the global
equity markets. After a relatively good start to 2011, the mood in the market
changed in August 2011. As the risks of global economies falling back into a
recession started to rise, investors began to shun all risky assets, selling
equities across the globe. The sell-off started in July but gained tremendous
momentum in August. Markets began to stabilize and then moved dramatically
higher in the month of October, only to falter once again in the month of
November. After a relatively stable December, the month of January saw equity
indices move higher once again. All of this resulted in a modest positive return
for the Fund and its benchmarks.
During the reporting period, the Fund focused on certain sub-sectors,
particularly in the information technology sector. The Fund also invested in the
healthcare sector, particularly in biotech, medical devices and pharmaceutical
companies. In addition, the Fund held small positions in the consumer
discretionary, industrials and telecommunication sectors.
Positive contributors to the Fund's overall return during this period were
stocks in the following sectors and sub-sectors: biotechnology, communications
equipment, computer hardware, electronic manufacturing services, semiconductor
equipment and semiconductors. Among the negative contributors were the Fund's
exposure to the consumer discretionary sector, particularly, the retail
internet, electronic equipment, electronic component, home entertainment
software, internet software and services and telecommunications sub-sectors.
6 HIGHMARK(R) FUNDS
HIGHMARK ENHANCED GROWTH FUND
INVESTMENT OBJECTIVE
HIGHMARK ENHANCED GROWTH FUND SEEKS LONG-TERM CAPITAL APPRECIATION.
[PHOTO OMITTED]
PORTFOLIO MANAGER
SONYA THADHANI
BAILARD, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK ENHANCED
GROWTH FUND VERSUS THE NASDAQ 100 INDEX, THE S&P NORTH AMERICAN TECHNOLOGY
SECTOR INDEX AND THE MORNINGSTAR SPECIALTY-TECHNOLOGY CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark Morningstar S&P North
Enhanced Specialty - American
Growth Fund, NASDAQ 100 Technology Technology
Class A Shares+ Index++ Category Sector Index++
Jul-01 $ 9,450 $10,000 $10,000 $10,000
Jul-02 $ 5,540 $ 5,413 $ 6,185 $ 5,575
Jul-03 $ 7,208 $ 7,196 $ 7,020 $ 7,123
Jul-04 $ 7,832 $ 7,910 $ 7,651 $ 7,775
Jul-05 $ 8,832 $ 9,100 $ 8,530 $ 8,679
Jul-06 $ 8,042 $ 8,595 $ 8,298 $ 8,122
Jul-07 $10,161 $11,053 $10,576 $10,695
Jul-08 $ 9,163 $10,579 $ 9,468 $ 9,954
Jul-09 $ 7,953 $ 9,173 $ 8,391 $ 8,901
Jul-10 $ 9,043 $10,735 $ 9,755 $10,168
Jul-11 $10,972 $13,717 $11,974 $12,229
Jan-12 $11,303 $14,405 $11,879 $12,706
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
----------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR 10 YEAR EXPENSE EXPENSE
RETURN RETURN RETURN RETURN RETURN RATIO++ RATIO++
----------------------------------------------------------------------------------------------------------------
Fiduciary Shares 3.22% 1.94% 25.48% 4.19%+ 3.01%+ 1.34% 1.21%
----------------------------------------------------------------------------------------------------------------
Class A Shares 3.01% 1.53% 25.01% 3.79% 2.62%+ 1.59% 1.46%
----------------------------------------------------------------------------------------------------------------
Class A Shares w/load* -2.67% -4.07% 22.66% 2.62% 2.04%+ 1.59% 1.46%
----------------------------------------------------------------------------------------------------------------
Class C Shares 2.72% 0.92% 24.24% 3.17% 2.07%+ 2.09% 2.06%
----------------------------------------------------------------------------------------------------------------
Class C Shares w/load** 1.72% -0.08% 24.24% 3.17% 2.07%+ 2.09% 2.06%
----------------------------------------------------------------------------------------------------------------
Class M Shares 3.21% 1.94% 25.45% 4.21% 3.08% 1.09% 1.06%
----------------------------------------------------------------------------------------------------------------
NASDAQ 100 Index 5.02% 9.18% 28.91% 7.34% N/A -- --
----------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
+ The performance presented links the performance of Class M Shares from ten
years ago with the performance of Class A and Class C Shares on April 3,
2006 and Fiduciary Shares on September 26, 2007. Class M Share performance
has been adjusted to reflect higher expenses applicable to these Classes.
Without those adjustments, performance would be higher than that shown.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 7
TOP TEN HOLDINGS
% OF
COMPANY* PORTFOLIO
EXXONMOBIL 3.8%
INTERNATIONAL BUSINESS MACHINES 3.3
CHEVRON 3.0
VERIZON COMMUNICATIONS 2.8
BRISTOL-MYERS SQUIBB 2.6
JOHNSON & JOHNSON 2.5
PFIZER 2.3
GENERAL ELECTRIC 2.3
U.S. BANCORP 2.3
MERCK 2.1
FUND SECTORS
% OF
SECTOR PORTFOLIO
FINANCIALS 23.9%
INDUSTRIAL 15.4
ENERGY 12.8
HEALTH CARE 11.1
UTILITIES 8.4
INFORMATION TECHNOLOGY 7.9
TELECOMMUNICATION SERVICES 5.9
CONSUMER DISCRETIONARY 5.6
CONSUMER STAPLES 4.9
MATERIALS 2.9
REGISTERED INVESTMENT COMPANY 1.2
* EXCLUDES SHORT-TERM SECURITIES.
EQUITY INCOME FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Equity Income Fund
(the "Fund") produced a total return of 4.83% (Class A Shares without load). In
comparison, the Fund's benchmark, the unmanaged Russell 1000 Value Index,
returned 1.74% for the same period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by challenging global
conditions and a slow-growth economic recovery. Concerns over the continuing
sovereign debt crisis in Europe, and fears of its potential impact in other
geographical regions, contributed to extreme volatility in financial markets
both in the United States and abroad. Investors dealt with structural market
imbalances, and consumers continued to deleverage across the globe. Despite
these challenges, signs of improvement did occur. The domestic unemployment rate
declined in five of the months of the reporting period, and housing prices
stabilized.
The Fund's underweight to the financials sector relative to its benchmark proved
positive for its performance during the reporting period, as did an overweight
to the energy and industrials sectors. An underweight to the information
technology and consumer discretionary sectors was also beneficial to
performance.
The Fund's underweight to the consumer staples sector detracted from
performance, as did an underweight to the utilities and materials sectors.
Specific stocks that contributed to performance were WW Grainger Inc., Bristol
Myers Squibb and Home Depot. Specific stocks that detracted from performance
include Eastman Chemical, Pengrowth Energy and Intel Corp.
Despite the above-mentioned drags on performance, the Fund outperformed its
benchmark for the reporting period.
8 HIGHMARK(R) FUNDS
HIGHMARK EQUITY INCOME FUND
INVESTMENT OBJECTIVE
HIGHMARK EQUITY INCOME FUND SEEKS TOTAL RETURN FROM INCOME AND CAPITAL
APPRECIATION.
[PHOTO OMITTED]
LEAD PORTFOLIO MANAGER
DONALD NESBITT
ZIEGLER LOTSOFF CAPITAL
MANAGEMENT, LLC
[PHOTO OMITTED]
PORTFOLIO MANAGER
MIKHAIL ALKHAZOV
ZIEGLER LOTSOFF CAPITAL
MANAGEMENT, LLC
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK EQUITY
INCOME FUND VERSUS THE RUSSELL 1000 VALUE INDEX AND THE MORNINGSTAR LARGE VALUE
CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark
Equity Income Russell 1000
Fund Class A Value Index++ Morningstar Large Value Category
3/31/2005 $ 9,450 $10,000 $10,000
Jul-05 $ 9,943 $10,497 $10,449
Jul-06 $10,421 $11,713 $11,312
Jul-07 $11,810 $13,291 $12,935
Jul-08 $10,062 $11,277 $10,976
Jul-09 $ 7,833 $ 8,690 $ 8,764
Jul-10 $ 9,091 $10,028 $ 9,881
Jul-11 $10,908 $11,708 $11,514
Jan-12 $11,434 $11,912 $11,646
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
----------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR SINCE EXPENSE EXPENSE
RETURN RETURN RETURN RETURN INCEPTION RATIO++ RATIO++
----------------------------------------------------------------------------------------------------------------
Fiduciary Shares 4.95% 7.62% 19.20%+ -0.68%+ 2.86%+ 1.75% 0.90%
----------------------------------------------------------------------------------------------------------------
Class A Shares 4.83% 7.36% 19.11% -0.72% 2.82% 2.00% 1.15%
----------------------------------------------------------------------------------------------------------------
Class A Shares w/load* -0.90% 1.45% 16.87% -1.83% 1.98% 2.00% 1.15%
----------------------------------------------------------------------------------------------------------------
Class B Shares 4.48% 6.64% 18.40% -1.38% 2.10% 2.50% 1.75%
----------------------------------------------------------------------------------------------------------------
Class B Shares w/load** -0.52% 1.64% 17.69% -1.72% 2.10% 2.50% 1.75%
----------------------------------------------------------------------------------------------------------------
Class C Shares 4.42% 6.63% 18.38% -1.39% 2.26% 2.50% 1.75%
----------------------------------------------------------------------------------------------------------------
Class C Shares w/load** 3.42% 5.63% 18.38% -1.39% 2.26% 2.50% 1.75%
----------------------------------------------------------------------------------------------------------------
Russell 1000 Value Index 1.74% 1.88% 17.63% -2.16% 2.60% -- --
----------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
+ The performance presented links the performance of Class A Shares from
April 1, 2005 with the performance of Fiduciary Shares on July 24, 2009.
Class A Share performance has not been adjusted to reflect expenses
applicable to Fiduciary Shares; with those adjustments, performance would
be higher than that shown.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 5.00%.
*** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 9
TOP TEN HOLDINGS
COMPANY* % OF
PORTFOLIO
TRACTOR SUPPLY 2.9%
PANERA BREAD, CL A 2.9
O'REILLY AUTOMOTIVE 2.9
ROPER INDUSTRIES 2.6
COGNIZANT TECHNOLOGY SOLUTIONS, CL A 2.6
DICK'S SPORTING GOODS 2.5
INTUIT 2.5
FASTENAL 2.5
CERNER 2.4
LKQ 2.4
FUND SECTORS
SECTOR % OF
PORTFOLIO
INFORMATION TECHNOLOGY 23.2%
CONSUMER DISCRETIONARY 20.7
INDUSTRIAL 20.3
HEALTH CARE 12.2
ENERGY 9.9
FINANCIALS 5.8
CONSUMER STAPLES 3.7
REGISTERED INVESTMENT COMPANY 2.7
MATERIALS 1.5
* EXCLUDES SHORT-TERM SECURITIES.
GENEVA MID CAP
GROWTH FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Geneva Mid Cap Growth
Fund (the "Fund") produced a total return of 4.77% (Class A Shares without
load). In comparison, the Fund's benchmark, the unmanaged Russell Mid Cap Growth
index, returned 0.00% for the same period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by challenging global
conditions and a slow-growth economic recovery. Concerns over the continuing
sovereign debt crisis in Europe, and fears of its potential impact in other
geographical regions, contributed to extreme volatility in financial markets
both in the United States and abroad. Investors dealt with structural market
imbalances, and consumers continued to deleverage across the globe. Despite
these challenges, signs of improvement did occur. The domestic unemployment rate
declined in five of the months of the reporting period, and housing prices
stabilized.
From a sector standpoint, the Fund's overweight to the consumer discretionary
sector positively impacted performance, as did the Fund's overweight to the
industrials and energy sectors.
Stock selection in the consumer discretionary sector was especially positive for
the Fund's performance, with O'Reilly Automotive and Panera Bread performing
well. Fastenal, a distributor of industrial and construction supplies, performed
well in the industrials sector, as did Intuit in the information technology
sector.
The health care sector, in particular, performed poorly during the reporting
period, due mainly to the relative outperformance of the biotechnology sector.
As the two sectors are often inversely correlated, the Fund's position in
Illumina Inc., a health care company, detracted from performance. Urban
Outfitters also detracted from the Fund's performance in the retail sector.
However, the Fund was able to overcome these factors and outperformed its
benchmark for the reporting period.
10 HIGHMARK(R) FUNDS
HIGHMARK GENEVA
MID CAP GROWTH FUND
INVESTMENT OBJECTIVE
HIGHMARK GENEVA MID CAP GROWTH FUND SEEKS LONG-TERM CAPITAL APPRECIATION.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
AMY S. CROEN
GENEVA CAPITAL
MANAGEMENT LTD.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
WILLIAM A. PRIEBE
GENEVA CAPITAL
MANAGEMENT LTD.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
MICHELLE J. PICARD
GENEVA CAPITAL
MANAGEMENT LTD.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
W. SCOTT PRIEBE
GENEVA CAPITAL
MANAGEMENT LTD.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK GENEVA MID
CAP GROWTH FUND VERSUS THE RUSSELL MIDCAP GROWTH INDEX AND MORNINGSTAR MIDCAP
GROWTH CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
Geneva Mid- Morningstar Mid-
Cap Growth Russell Mid-Cap Cap Growth
Fund Class A Shares Growth Index++ Category
Jul-01 $ 9,450 $10,000 $10,000
Jul-02 $ 8,254 $ 7,132 $ 7,177
Jul-03 $ 9,096 $ 8,783 $ 8,299
Jul-04 $10,527 $10,082 $ 9,186
Jul-05 $13,139 $12,668 $11,243
Jul-06 $13,470 $13,046 $11,510
Jul-07 $15,326 $15,837 $13,988
Jul-08 $15,132 $14,583 $12,878
Jul-09 $12,573 $11,394 $ 9,943
Jul-10 $14,989 $13,692 $11,751
Jul-11 $19,009 $17,661 $14,886
Jan-12 $19,916 $17,661 $14,601
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
----------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR 10 YEAR EXPENSE EXPENSE
RETURN RETURN RETURN RETURN RETURN RATIO++ RATIO++
----------------------------------------------------------------------------------------------------------------
Fiduciary Shares 4.92% 8.14% 26.28%+ 6.48%+ 7.64%+ 1.29% 1.13%
----------------------------------------------------------------------------------------------------------------
Class A Shares 4.77% 7.81% 25.96% 6.32% 7.56% 1.54% 1.38%
----------------------------------------------------------------------------------------------------------------
Class A Shares w/load* -0.98% 1.90% 23.62% 5.12% 6.96% 1.54% 1.38%
----------------------------------------------------------------------------------------------------------------
Class B Shares 4.41% 7.15% 25.18% 5.61% 6.81% 2.04% 1.98%
----------------------------------------------------------------------------------------------------------------
Class B Shares w/load** -0.59% 2.15% 24.53% 5.29% 6.81% 2.04% 1.98%
----------------------------------------------------------------------------------------------------------------
Class C Shares 4.41% 7.17% 25.19% 5.59% 6.80% 2.04% 1.98%
----------------------------------------------------------------------------------------------------------------
Class C Shares w/load*** 3.41% 6.17% 25.19% 5.59% 6.80% 2.04% 1.98%
----------------------------------------------------------------------------------------------------------------
Russell Midcap Growth Index 0.00% 3.42% 26.87% 3.14% 6.38% -- --
----------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
+ The performance presented links the performance of Class A Shares from ten
years ago with the performance of Fiduciary Shares on June 26, 2009. Class
A Share performance has not been adjusted to reflect expenses applicable
to Fiduciary Shares; with those adjustments, performance would be higher
than that shown.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 5.00%.
*** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 11
TOP TEN HOLDINGS
COMPANY* % OF
PORTFOLIO
MONRO MUFFLER BRAKE 3.0%
GENESEE & WYOMING, CL A 2.8
TYLER TECHNOLOGIES 2.8
ULTA SALON, COSMETICS & FRAGRANCE 2.8
HIBBETT SPORTS 2.8
SXC HEALTH SOLUTIONS 2.7
ULTIMATE SOFTWARE GROUP 2.4
HMS HOLDINGS 2.4
TEXAS CAPITAL BANCSHARES 2.3
RBC BEARINGS 2.3
FUND SECTORS
SECTOR % OF
PORTFOLIO
INFORMATION TECHNOLOGY 22.7%
INDUSTRIAL 20.4
HEALTH CARE 19.1
CONSUMER DISCRETIONARY 18.0
ENERGY 8.3
FINANCIALS 4.9
MATERIALS 3.2
CONSUMER STAPLES 1.7
REGISTERED INVESTMENT COMPANY 1.7
* EXCLUDES SHORT-TERM SECURITIES.
GENEVA SMALL CAP
GROWTH FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Geneva Small Cap
Growth Fund (the "Fund") produced a total return of 2.42% (Class A Shares
without load). In comparison, the Fund's benchmark, the unmanaged Russell 2000
Growth Index, returned 0.02% for the same period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by challenging global
conditions and a slow-growth economic recovery. Concerns over the continuing
sovereign debt crisis in Europe, and fears of its potential impact in other
geographical regions, contributed to extreme volatility in financial markets
both in the United States and abroad. Investors dealt with structural market
imbalances, and consumers continued to deleverage across the globe. Despite
these challenges, signs of improvement did occur. The domestic unemployment rate
declined in five of the months of the reporting period, and housing prices
stabilized.
From a sector standpoint, the Fund's overweight position relative to its
benchmark in the consumer discretionary and industrials sectors contributed to
performance.
LKQ Used Auto Parts in the consumer discretionary sector positively impacted
performance, as did Donaldson in the industrials sector.
The Fund's overweight to the health care sector, in particular, performed poorly
during the reporting period, due mainly to the relative outperformance of the
biotechnology sector, as the two sectors are often inversely correlated. The
consumer staples sector also negatively impacted performance.
The stock price of Diamond Foods, one of the Fund's positions, dropped
significantly due to concerns over management and reporting issues, thereby
detracting from the Fund's performance.
Despite this slight drag on performance, the Fund outperformed its benchmark for
the reporting period.
12 HIGHMARK(R) FUNDS
HIGHMARK GENEVA SMALL CAP
GROWTH FUND INVESTMENT
OBJECTIVE
HIGHMARK GENEVA SMALL CAP GROWTH FUND SEEKS LONG-TERM CAPITAL APPRECIATION.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
AMY S. CROEN
GENEVA CAPITAL
MANAGEMENT LTD.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
WILLIAM A. PRIEBE
GENEVA CAPITAL
MANAGEMENT LTD.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
MICHELLE J. PICARD
GENEVA CAPITAL
MANAGEMENT LTD.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
W. SCOTT PRIEBE
GENEVA CAPITAL
MANAGEMENT LTD.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK GENEVA
SMALL CAP GROWTH FUND VERSUS THE RUSSELL 2000 GROWTH INDEX AND THE MORNINGSTAR
SMALL GROWTH CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark Geneva
Small Cap
Growth Fund Russell 2000 Morningstar Small
Class A Shares Growth Index++ Growth Category
Jun-09 $ 9,450 $10,000 $10,000
Jul-09 $ 9,781 $10,483 $10,491
Aug-09 $ 9,771 $10,586 $10,665
Sep-09 $10,338 $11,281 $11,381
Oct-09 $ 9,941 $10,497 $10,709
Nov-09 $10,224 $10,822 $11,071
Dec-09 $10,829 $11,748 $11,938
Jan-10 $10,305 $11,223 $11,413
Jul-10 $11,524 $12,236 $12,281
Jan-11 $14,509 $15,081 $15,240
Jul-11 $15,085 $15,823 $15,906
Jan-12 $15,450 $15,826 $15,607
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
-----------------------------------------------------------------------------------------
ANNUALIZED GROSS NET
SIX MONTH ONE YEAR SINCE EXPENSE EXPENSE
RETURN RETURN INCEPTION+ RATIO++ RATIO++
-----------------------------------------------------------------------------------------
Fiduciary Shares 2.57% 6.81% 20.80% 2.01% 1.38%
-----------------------------------------------------------------------------------------
Class A Shares 2.42% 6.49% 20.48% 2.26% 1.63%
-----------------------------------------------------------------------------------------
Class A Shares w/load* -3.22% 0.63% 17.94% 2.26% 1.63%
-----------------------------------------------------------------------------------------
Class C Shares 2.12% 5.87% 19.80% 2.76% 2.23%
-----------------------------------------------------------------------------------------
Class C Shares w/load** 1.13% 4.87% 19.80% 2.76% 2.23%
-----------------------------------------------------------------------------------------
Russell 2000 Growth Index 0.02% 4.94% 19.04% -- --
-----------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
IN ADDITION TO THE NORMAL RISKS ASSOCIATED WITH EQUITY INVESTING, INVESTING IN
SMALL CAP COMPANIES MAY INVOLVE ADDITIONAL RISK BECAUSE, AS SMALL CAP COMPANIES
ARE FREQUENTLY IN THE EARLY STAGES OF GROWTH, THEIR STOCKS TEND TO FLUCTUATE IN
VALUE.
+ Commenced investment operations on June 12, 2009.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 13
TOP TEN HOLDINGS+
COMPANY* % OF
PORTFOLIO
SAMSUNG ELECTRONICS 1.2%
PETROFAC 1.0
STATOIL 1.0
UNILEVER 1.0
BP 0.9
ASTRAZENECA 0.9
ROYAL DUTCH SHELL, CL B 0.9
NESTLE 0.8
BANCO DO BRASIL 0.8
BAYERISCHE MOTOREN WERKE 0.8
FUND SECTORS+
SECTOR % OF
PORTFOLIO
FINANCIALS 21.7%
INDUSTRIAL 12.0
ENERGY 12.0
MATERIALS 10.9
CONSUMER DISCRETIONARY 10.6
CONSUMER STAPLES 10.5
HEALTH CARE 6.5
TELECOMMUNICATION SERVICES 5.8
INFORMATION TECHNOLOGY 5.0
UTILITIES 3.4
REPURCHASE AGREEMENTS 1.6
* EXCLUDES SHORT-TERM SECURITIES.
+ EXCLUDES SECURITIES PURCHASED WITH CASH COLLATERAL RECEIVED FROM
SECURITIES LENDING.
INTERNATIONAL OPPORTUNITIES FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark International
Opportunities Fund (the "Fund") produced a total return of -13.43% (Class A
Shares without load). In comparison, the Fund's benchmarks, the unmanaged MSCI
All-Country World ex-U.S. Index (gross) ("ACWI ex-U.S.") and the unmanaged MSCI
EAFE Index (net) ("EAFE"), returned -9.88% and -10.32% respectively for the same
period.
FACTORS AFFECTING PERFORMANCE
A turbulent six months for global equity markets started off on the wrong foot
with Standard and Poor's downgrade of U.S. government debt. Selling pressure
intensified through September as concern over Europe's sovereign debts - and a
possible Greek default - returned to the forefront. The market's tone then
improved with a relief rally in October and, more recently, strength in the
early part of 2012 on the back of the European Central Bank's change in
leadership and initiation of its Long-Term Refinancing Operation. With only a
few exceptions, global equity markets ended the six-month period with losses (as
measured by each country or geographic region's respective MSCI index given in
U.S. dollar terms, net dividends). Most foreign currencies weakened against the
U.S. dollar as capital fled Europe and sought a safe harbor in U.S. treasuries.
The dispersion of country returns within developed markets was again (as in the
prior year) influenced by perceived sovereign risk. At the top end (falling less
than 5%) were the U.K. and Australia. Ireland also achieved a positive return
(up 4%) as it was rewarded for austerity efforts. At the bottom end were
Portugal, Italy, Greece, and Spain, with returns in the -15% to -50% range. In
addition, Austria, France, and Germany had weak performance as investors began
to worry that Germany would end up bearing a heavy financial burden in any
resolution of Europe's debt problem. Eastern Europe, facing banking and
contagion risk from the west, was well represented among the emerging markets'
bottom performers. Collectively, the emerging markets outperformed EAFE by a
slim margin.
The Fund underperformed its benchmarks over the six-month period, with country
allocation accounting for about one-fourth of the shortfall and stock selection
the other three-fourths. The most beneficial country decision was a return to an
overweight exposure in Brazil following September's selloff; working against
this and other small wins were overweight positions in Germany and Poland. With
global volatility rising from a below-average to an above-average level, the
country selection models paid less attention to a market's momentum and more to
valuation and risk characteristics.
Stock selection factors had an extremely difficult time handling the sharp
downturn that occurred in August and September. While earnings quality and price
momentum held steady, neither hurting nor helping mightily, value factors
adversely affected performance. Perceived value represented a trap to the
investor rather than an opportunity; in addition, smaller capitalization, higher
volatility and pro-cyclical names were punished severely. Since the stock
selection process places a particular emphasis on value in Asian markets, this
was the region - primarily in Hong Kong and Japan, but also China and Korea -
where the impact on total Fund results was greatest.
14 HIGHMARK(R) FUNDS
HIGHMARK INTERNATIONAL OPPORTUNITIES FUND INVESTMENT OBJECTIVE
HIGHMARK INTERNATIONAL OPPORTUNITIES FUND SEEKS LONG-TERM CAPITAL APPRECIATION.
[PHOTO OMITTED]
CO-PORTFOLIO
MANAGER
ANTHONY R. CRADDOCK
BAILARD, INC.
[PHOTO OMITTED]
CO-PORTFOLIO
MANAGER
ERIC P. LEVE
BAILARD, INC.
[PHOTO OMITTED]
CO-PORTFOLIO
MANAGER
PETER M. HILL
BAILARD, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK
INTERNATIONAL OPPORTUNITIES FUND VERSUS THE MSCI ALL COUNTRY WORLD EX-U.S. INDEX
GROSS, THE MSCI EAFE INDEX (NET) AND THE MORNINGSTAR FOREIGN LARGE BLEND
CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark MSCI All
International Country World Morningstar
Opportunities Fund ex-U.S. MSCI EAFE Foreign Large
Class A Shares Index Gross++ ^ Index (net)++ Blend Category++
Jul-01 $ 9,450 $10,000 $10,000 $10,000
Jul-02 $ 8,019 $ 8,452 $ 8,308 $ 8,377
Jul-03 $ 8,838 $ 9,172 $ 8,831 $ 9,028
Jul-04 $10,910 $11,451 $11,044 $11,202
Jul-05 $13,770 $14,243 $13,369 $13,850
Jul-06 $17,569 $17,748 $16,579 $17,060
Jul-07 $22,665 $22,709 $20,544 $21,085
Jul-08 $20,330 $20,597 $18,039 $18,688
Jul-09 $15,091 $16,292 $13,962 $14,391
Jul-10 $16,304 $17,941 $14,837 $15,436
Jul-11 $19,573 $21,145 $17,384 $18,102
Jan-12 $16,945 $19,056 $15,573 $16,152
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
^ Index does not reflect deduction for taxes.
--------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR 10 YEAR EXPENSE EXPENSE
RETURN RETURN RETURN RETURN RETURN RATIO++ RATIO++
--------------------------------------------------------------------------------------------------------------
Fiduciary Shares -13.21% -11.19% 13.47% -3.23% 7.34%+ 1.52% 1.27%
--------------------------------------------------------------------------------------------------------------
Class A Shares -13.43% -11.41% 13.27% -3.41% 7.09%+ 1.77% 1.42%
--------------------------------------------------------------------------------------------------------------
Class A Shares w/load* -18.15% -16.24% 11.15% -4.49% 6.48%+ 1.77% 1.42%
--------------------------------------------------------------------------------------------------------------
Class C Shares -13.66% -11.98% 12.47% -4.07% 6.44%+ 2.27% 2.12%
--------------------------------------------------------------------------------------------------------------
Class C Shares w/load** -14.50% -12.85% 12.47% -4.07% 6.44%+ 2.27% 2.12%
--------------------------------------------------------------------------------------------------------------
Class M Shares -13.14% -11.12% 13.65% -3.09% 7.48% 1.27% 1.12%
--------------------------------------------------------------------------------------------------------------
MSCI All Country World
ex-U.S. Index Gross -9.88% -8.34% 17.22% -1.26% 7.93% -- --
--------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
IN ADDITION TO THE NORMAL RISKS ASSOCIATED WITH INVESTING, INTERNATIONAL
INVESTMENTS MAY INVOLVE RISK OF CAPITAL LOSS FROM AN UNFAVORABLE FLUCTUATION IN
CURRENCY VALUES, FROM DIFFERENCES IN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES OR
FROM ECONOMIC OR POLITICAL INSTABILITY IN OTHER NATIONS. EMERGING MARKETS
INVESTMENTS INVOLVE HEIGHTENED RISKS RELATED TO THE SAME FACTORS.
+ The performance presented links the performance of Class M Shares from ten
years ago with the performance of Class A and Class C Shares on April 3,
2006 and Fiduciary Shares on April 4, 2006. Class M Share performance has
been adjusted to reflect higher expenses applicable to these Classes.
Without those adjustments, performance would be higher than that shown.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 15
TOP TEN HOLDINGS
COMPANY* % OF
PORTFOLIO
APPLE 6.0%
EXXONMOBIL 4.0
WELLS FARGO 2.7
COCA-COLA 2.7
GILEAD SCIENCES 2.6
PROCTER & GAMBLE 2.6
CHEVRON 2.6
GENERAL ELECTRIC 2.3
UNITED PARCEL SERVICE, CL B 2.3
WESTERN DIGITAL 2.2
FUND SECTORS
SECTOR % OF
PORTFOLIO
INFORMATION TECHNOLOGY 20.4%
HEALTH CARE 13.0
FINANCIALS 11.7
ENERGY 11.5
INDUSTRIAL 11.4
CONSUMER STAPLES 11.1
CONSUMER DISCRETIONARY 9.1
MATERIALS 5.3
UTILITIES 4.0
TELECOMMUNICATIONS SERVICES 1.3
REPURCHASE AGREEMENT 1.2
* EXCLUDES SHORT-TERM SECURITIES.
LARGE CAP CORE EQUITY
FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Large Cap Core Equity
Fund (the "Fund") produced a total return of 2.79% (Class A Shares without
load). In comparison, the Fund's benchmark, the unmanaged S&P 500 Index,
returned 2.71% over the same period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by high volatility and a
changing global economic environment. Concerns over the continuing sovereign
debt crisis in Europe, and fears of its potential impact in other geographical
regions, contributed to extreme volatility in financial markets both in the
United States and abroad. Investors dealt with structural market imbalances, and
consumers continued to deleverage across the globe. These fears began to subside
late in the reporting period as European leaders took steps to control their
currency crisis, and signs of organic economic growth in the United States, such
as employment expansion and stability in the housing process, began to emerge.
Markets accelerated as these trends emerged, and the high correlations and
volatility experienced during the period subsided dramatically.
An underlying theme throughout the Fund's reporting period was the relative
strength of the U.S. dollar, the effects of which rippled through financial
markets causing domestically focused companies, including large caps, to perform
well.
Most of the Fund's active sector weights, while slight, were beneficial during
the period, most notably an overweight in the industrials sector and an
underweight in the consumer discretionary and information technology sectors.
Specific stocks that contributed to performance include Apple, Home Depot and
Gilead Sciences. Specific stocks that detracted from performance include the
Commonwealth REIT, Nabors Industries and Thermo Fisher Scientific.
Despite these slight drags on performance, the Fund outperformed its benchmark
for the reporting period.
16 HIGHMARK(R) FUNDS
HIGHMARK LARGE CAP CORE EQUITY FUND
INVESTMENT OBJECTIVE
HIGHMARK LARGE CAP CORE EQUITY FUND SEEKS LONG-TERM CAPITAL APPRECIATION.
[PHOTO OMITTED]
CO-PORTFOLIO
MANAGER
DAVID GOERZ
HIGHMARK CAPITAL MANAGEMENT, INC.
[PHOTO OMITTED]
CO-PORTFOLIO
MANAGER
DEREK IZUEL
HIGHMARK CAPITAL MANAGEMENT, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK LARGE CAP
CORE EQUITY FUND VERSUS THE S&P 500 INDEX AND THE MORNINGSTAR LARGE VALUE
CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark Large Cap
Core Equity Fund Morningstar Large
Class A Shares S&P 500 Index++ Value Category
Jul-01 $ 9,450 $10,000 $10,000
Jul-02 $ 7,139 $ 7,637 $ 8,086
Jul-03 $ 7,775 $ 8,450 $ 8,785
Jul-04 $ 8,511 $ 9,562 $10,134
Jul-05 $ 9,474 $10,910 $11,746
Jul-06 $10,341 $11,497 $12,717
Jul-07 $11,814 $13,352 $14,541
Jul-08 $10,107 $11,871 $12,338
Jul-09 $ 8,102 $ 9,502 $ 9,852
Jul-10 $ 9,259 $10,817 $11,108
Jul-11 $10,939 $12,943 $12,943
Jan-12 $11,244 $13,293 $13,092
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR 10 YEAR EXPENSE EXPENSE
RETURN RETURN RETURN RETURN RETURN RATIO++ RATIO++
------------------------------------------------------------------------------------------------------------
Fiduciary Shares 2.92% 3.73% 19.63% -0.89% 2.71% 1.23% 0.97%
------------------------------------------------------------------------------------------------------------
Class A Shares 2.79% 3.46% 19.29% -1.17% 2.44% 1.48% 1.22%
------------------------------------------------------------------------------------------------------------
Class A Shares w/load* -2.83% -2.21% 17.03% -2.30% 1.86% 1.48% 1.22%
------------------------------------------------------------------------------------------------------------
Class B Shares 2.35% 2.81% 18.58% -1.78% 1.79% 1.98% 1.82%
------------------------------------------------------------------------------------------------------------
Class B Shares w/load** -2.65% -2.19% 17.87% -2.15% 1.79% 1.98% 1.82%
------------------------------------------------------------------------------------------------------------
Class C Shares 2.39% 2.78% 18.48% -1.84% 1.94%+ 1.98% 1.82%
------------------------------------------------------------------------------------------------------------
Class C Shares w/load*** 1.39% 1.78% 18.48% -1.84% 1.94%+ 1.98% 1.82%
------------------------------------------------------------------------------------------------------------
S&P 500 Index 2.71% 4.22% 19.24% 0.33% 3.52% -- --
------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
+ The performance presented links the performance of Fiduciary Shares from
ten years ago with the performance of Class C Shares on November 28, 2003.
Fiduciary Share performance does not reflect higher expenses applicable to
this Class. With those adjustments, performance would be lower than that
shown.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 5.00%.
*** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 17
TOP TEN HOLDINGS
COMPANY* % OF
PORTFOLIO
APPLE 10.1%
PRAXAIR 4.6
COCA-COLA 4.5
ECOLAB 4.0
QUALCOMM 3.4
ORACLE 3.3
EMC 3.1
EXXONMOBIL 3.0
ANHEUSER-BUSCH INBEV NV,
SP ADR 3.0
DANAHER 3.0
FUND SECTORS
SECTOR % OF
PORTFOLIO
INFORMATION TECHNOLOGY 26.6%
CONSUMER STAPLES 14.1
INDUSTRIAL 12.9
CONSUMER DISCRETIONARY 11.2
ENERGY 10.1
HEALTH CARE 9.7
MATERIALS 8.7
TELECOMMUNICATION SERVICES 2.5
REGISTERED INVESTMENT COMPANY 2.3
UTILITIES 1.9
* EXCLUDES SHORT-TERM SECURITIES.
LARGE CAP GROWTH FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Large Cap Growth Fund
(the "Fund") produced a total return of 1.38% (Class A Shares without load). In
comparison, the Fund's benchmark, the unmanaged Russell 1000 Growth Index,
returned 2.84% over the same period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by challenging global
conditions and a slow-growth economic recovery. Concerns over the continuing
sovereign debt crisis in Europe, and fears of its potential impact in other
geographical regions, contributed to extreme volatility in financial markets
both in the United States and abroad. Investors dealt with structural market
imbalances, and consumers continued to deleverage across the globe. Despite
these challenges, signs of improvement did occur. The domestic unemployment rate
declined in five of the months of the reporting period, and housing prices
stabilized.
The sectors that contributed most to the Fund's performance were materials,
industrials and consumer discretionary. The sectors that detracted most from the
Fund's performance were consumer staples and technology.
Cleaning product developer Ecolab, filtration maker Donaldson Company,
industrial supply company WW Grainger, Sally Beauty and PetSmart were top
contributors to the Fund's performance. The stock price of Diamond Foods, one of
the Fund's positions, dropped significantly due to concerns over management and
reporting issues, thereby detracting from the Fund's performance. Oracle and
ACME Packet were also two of the Fund's largest performance detractors.
Unfortunately, the Fund was not able to overcome the above-mentioned drags on
performance, and it underperformed its benchmark for the reporting period.
18 HIGHMARK(R) FUNDS
HIGHMARK LARGE CAP GROWTH FUND
INVESTMENT OBJECTIVE
HIGHMARK LARGE CAP GROWTH FUND SEEKS LONG-TERM CAPITAL APPRECIATION THROUGH
INVESTMENTS IN U.S. EQUITY SECURITIES; CURRENT INCOME IS INCIDENTAL.
[PHOTO OMITTED]
CO-PORTFOLIO
MANAGER (1)
KEN WEMER
HIGHMARK CAPITAL MANAGEMENT, INC.
[PHOTO OMITTED]
CO-PORTFOLIO
MANAGER (1)
GEORGE ROKAS
HIGHMARK CAPITAL MANAGEMENT, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK LARGE CAP
GROWTH FUND VERSUS THE RUSSELL 1000 GROWTH INDEX AND THE MORNINGSTAR LARGE
GROWTH CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark Large Cap
Growth Fund Russell 1000 Morningstar Large
Class A Shares Growth Index++ Growth Category
Jul-01 $ 9,450 $10,000 $10,000
Jul-02 $ 7,102 $ 7,125 $ 7,152
Jul-03 $ 7,848 $ 7,954 $ 7,958
Jul-04 $ 8,112 $ 8,631 $ 8,503
Jul-05 $ 9,317 $ 9,758 $ 9,766
Jul-06 $ 9,486 $ 9,684 $ 9,732
Jul-07 $10,827 $11,569 $11,485
Jul-08 $ 9,861 $10,841 $10,712
Jul-09 $ 8,558 $ 8,936 $ 8,569
Jul-10 $ 9,626 $10,156 $ 9,580
Jul-11 $11,375 $12,671 $11,792
Jan-12 $11,532 $13,031 $11,709
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
-----------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR 10 YEAR EXPENSE EXPENSE
RETURN RETURN RETURN RETURN RETURN RATIO++ RATIO++
-----------------------------------------------------------------------------------------------------------
Fiduciary Shares 1.53% 1.83% 18.84% 2.04% 2.96% 1.25% 1.03%
-----------------------------------------------------------------------------------------------------------
Class A Shares 1.38% 1.58% 18.49% 1.77% 2.70% 1.50% 1.28%
-----------------------------------------------------------------------------------------------------------
Class A Shares w/load* -4.20% -4.02% 16.30% 0.62% 2.12% 1.50% 1.28%
-----------------------------------------------------------------------------------------------------------
Class B Shares 1.06% 0.95% 17.76% 1.19% 2.07% 2.00% 1.88%
-----------------------------------------------------------------------------------------------------------
Class B Shares w/load** -3.94% -4.05% 17.04% 0.81% 2.07% 2.00% 1.88%
-----------------------------------------------------------------------------------------------------------
Class C Shares 1.07% 0.96% 17.75% 1.16% 2.06% 2.00% 1.88%
-----------------------------------------------------------------------------------------------------------
Class C Shares w/load*** 0.07% -0.04% 17.75% 1.16% 2.06% 2.00% 1.88%
-----------------------------------------------------------------------------------------------------------
Russell 1000 Growth Index 2.84% 6.07% 22.31% 3.17% 3.38% -- --
-----------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 5.00%.
*** Reflects maximum CDSC of 1.00%.
(1) The portfolio management team also includes: Flavia Araujo, co-portfolio
manager; David Dillon, co-portfolio manager and Robert Kang, co-portfolio
manager.
HIGHMARK(R) FUNDS 19
TOP TEN HOLDINGS
% OF
COMPANY* PORTFOLIO
MICROSOFT 4.5%
BERKSHIRE HATHAWAY, CL B 3.8
JPMORGAN CHASE 3.8
HEWLETT-PACKARD 3.7
BP PLC, SP ADR 3.6
PFIZER 3.6
CITIGROUP 3.5
TEXAS INSTRUMENTS 3.4
CVS CAREMARK 3.1
CHEVRON 3.1
FUND SECTORS
% OF
SECTOR PORTFOLIO
FINANCIALS 23.7%
INFORMATION TECHNOLOGY 16.5
ENERGY 14.7
INDUSTRIAL 10.3
CONSUMER STAPLES 9.4
HEALTH CARE 9.3
CONSUMER DISCRETIONARY 6.5
MATERIALS 4.8
TELECOMMUNICATION SERVICES 2.5
UTILITIES 1.5
REPURCHASE AGREEMENT 0.8
* EXCLUDES SHORT-TERM SECURITIES.
LARGE CAP VALUE FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Large Cap Value Fund
(the "Fund") produced a total return of -2.43% (Class A Shares without load). In
comparison, the Fund's benchmark, the unmanaged Russell 1000 Value Index,
returned 1.74% for the same period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by challenging global
conditions and a slow-growth economic recovery. Concerns over the continuing
sovereign debt crisis in Europe, and fears of its potential impact in other
geographical regions, contributed to extreme volatility in financial markets
both in the United States and abroad. Investors dealt with structural market
imbalances, and consumers continued to deleverage across the globe. Despite
these challenges, signs of improvement did occur. The domestic unemployment rate
declined in five of the months of the reporting period, and housing prices
stabilized.
From a sector perspective, the health care and information technology sectors
positively impacted performance, while allocations to the financials and
consumer discretionary sectors detracted from performance.
Health care firm Humana Inc. was a top performer and top contributor on a
weighted basis to the Fund's performance. Pfizer and CVS Caremark were also top
contributors.
Bank of America, Apache Corp., Consol Energy and Citigroup were top detractors
from performance.
Unfortunately, the Fund was not able to overcome the abovementioned drags on
performance, and it underperformed its benchmark for the reporting period.
20 HIGHMARK(R) FUNDS
HIGHMARK LARGE CAP VALUE FUND INVESTMENT OBJECTIVE
HIGHMARK LARGE CAP VALUE FUND SEEKS LONG-TERM CAPITAL APPRECIATION.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
KEITH STRIBLING
HIGHMARK CAPITAL
MANAGEMENT, INC.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
TODD LOWENSTEIN
HIGHMARK CAPITAL
MANAGEMENT, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK LARGE CAP
VALUE FUND VERSUS THE RUSSELL 1000 VALUE INDEX AND THE MORNINGSTAR LARGE VALUE
CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark Large
Cap Value Fund, Russell 1000 Morningstar Large
Class A Shares Value Index++ Value Category
Jul-01 $ 9,450 $10,000 $10,000
Jul-02 $ 7,130 $ 8,276 $ 8,102
Jul-03 $ 7,638 $ 9,165 $ 8,790
Jul-04 $ 9,165 $10,786 $10,134
Jul-05 $11,098 $12,838 $11,735
Jul-06 $12,267 $14,326 $12,698
Jul-07 $13,750 $16,258 $14,514
Jul-08 $11,572 $13,795 $12,334
Jul-09 $ 9,293 $10,630 $ 9,849
Jul-10 $10,307 $12,266 $11,104
Jul-11 $11,642 $14,322 $12,939
Jan-12 $11,359 $14,571 $13,087
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
---------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR 10 YEAR EXPENSE EXPENSE
RETURN RETURN RETURN RETURN RETURN RATIO++ RATIO++
---------------------------------------------------------------------------------------------------------------
Fiduciary Shares -2.26% -5.18% 12.03% -3.65% 3.25% 1.19% 1.00%
---------------------------------------------------------------------------------------------------------------
Class A Shares -2.43% -5.39% 11.73% -3.91% 2.98% 1.44% 1.25%
---------------------------------------------------------------------------------------------------------------
Class A Shares w/load* -7.83% -10.60% 9.66% -4.99% 2.41% 1.44% 1.25%
---------------------------------------------------------------------------------------------------------------
Class B Shares -2.72% -6.00% 11.07% -4.49% 2.33% 1.94% 1.85%
---------------------------------------------------------------------------------------------------------------
Class B Shares w/load** -7.57% -10.69% 10.25% -4.84% 2.33% 1.94% 1.85%
---------------------------------------------------------------------------------------------------------------
Class C Shares -2.70% -5.98% 11.05% -4.49% 2.35% 1.94% 1.85%
---------------------------------------------------------------------------------------------------------------
Class C Shares w/load*** -3.67% -6.92% 11.05% -4.49% 2.35% 1.94% 1.85%
---------------------------------------------------------------------------------------------------------------
Russell 1000 Value Index 1.74% 1.88% 17.63% -2.16% 4.36% -- --
---------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 5.00%.
*** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 21
TOP TEN HOLDINGS
COMPANY* % OF
PORTFOLIO
APPLE 10.8%
INTERNATIONAL BUSINESS MACHINES 4.6
GOODRICH 3.0
F5 NETWORKS 2.8
BIOGEN IDEC 2.8
SALESFORCE.COM 2.8
VMWARE, CL A 2.2
LOCKHEED MARTIN 2.0
AMGEN 1.6
CITRIX SYSTEMS 1.5
FUND SECTORS
SECTOR % OF
PORTFOLIO
INFORMATION TECHNOLOGY 74.4%
HEALTH CARE 18.1
INDUSTRIAL 6.1
TELECOMMUNICATION SERVICES 0.7
REGISTERED INVESTMENT COMPANIES 0.7
* EXCLUDES SHORT-TERM SECURITIES.
NYSE ARCA TECH 100 INDEX FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark NYSE Arca Tech 100
Index Fund (the "Fund") produced a total return of 3.43% (Class A Shares without
load). In comparison, the Fund's benchmark, the NYSE Arca Tech 100 Index,
returned 3.93% for the same period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by challenging global
conditions and a slow-growth economic recovery. Concerns over the continuing
sovereign debt crisis in Europe, and fears of its potential impact in other
geographical regions, contributed to extreme volatility in financial markets
both in the United States and abroad. Investors dealt with structural market
imbalances, and consumers continued to deleverage across the globe. Despite
these challenges, signs of improvement did occur. The domestic unemployment rate
declined in five of the months of the reporting period, and housing prices
stabilized.
The Fund is passively managed to the NYSE Arca Tech 100 Index, so performance
differences between the Fund and its benchmark are primarily the result of Fund
expenses and investor capital flows. Because the Fund is passively managed, it
makes no active industry or security-selection bets as an investment strategy;
therefore, the Fund's performance reflects the NYSE Arca Tech 100 Index's
exposure to various industries and the individual stocks in the index.
The Fund's exposure to the computers and peripherals sector positively impacted
performance, contributing 1.64%. Its investment in the semiconductor and
semiconductor equipment sector contributed 1.33%, and its investment in the
aerospace and defense sector contributed 1.21% to performance.
The Fund's exposure to the software sector detracted 0.73% from performance and
the Internet software and services sector detracted 0.43%.
The Fund's exposure in Apple Inc. contributed 1.74% to the Fund's performance.
Goodrich Corp. was also a top stock performer contributing 0.94%, as was F5
Networks, which contributed 0.70% to performance.
InterDigital Inc., a wireless technology provider in the communications
equipment sector, detracted -0.61% from performance. SalesForce.com Inc. also
detracted 0.61% from performance, and Open Text Corp. detracted 0.35%.
License Information
"Archipelago(R)", "ARCA(R)", "ARCAEX(R)", "NYSE(R)", "NYSE ARCA(SM)" and "NYSE
Arca Tech 100(SM)" are trademarks of the NYSE Group, Inc. and Archipelago
Holdings, Inc. and have been licensed for use by HighMark Funds. NYSE Arca Tech
100 Index Fund is not sponsored, endorsed, sold or promoted by Archipelago
Holdings, Inc. or by NYSE Group, Inc. Neither Archipelago Holdings, Inc. nor
NYSE Group, Inc. makes any representation or warranty regarding the advisability
of investing in securities generally, NYSE Arca Tech 100 Index Fund particularly
or the ability of NYSE Arca Tech 100 Index to track general stock market
performance.
ARCHIPELAGO HOLDINGS, INC. ("ARCA") MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND
HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE WITH RESPECT TO NYSE ARCA TECH 100 INDEX OR ANY DATA INCLUDED
THEREIN. IN NO EVENT SHALL ARCA HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE,
INDIRECT OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF
THE POSSIBILITY OF SUCH DAMAGES.
22 HIGHMARK(R) FUNDS
HIGHMARK NYSE ARCA TECH 100 INDEX FUND INVESTMENT OBJECTIVE
HIGHMARK NYSE ARCA TECH 100 INDEX FUND SEEKS TO TRACK THE TOTAL RETURN OF THE
NYSE ARCA TECH 100 INDEX, BEFORE DEDUCTING FOR FUND EXPENSES.
[PHOTO OMITTED]
LEAD PORTFOLIO MANAGER
DONALD NESBITT
ZIEGLER LOTSOFF CAPITAL
MANAGEMENT, LLC
[PHOTO OMITTED]
PORTFOLIO MANAGER
MIKHAIL ALKHAZOV
ZIEGLER LOTSOFF CAPITAL
MANAGEMENT, LLC
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK NYSE ARCA
TECH 100 INDEX FUND VERSUS THE NYSE ARCA TECH 100 INDEX AND THE MORNINGSTAR
TECHNOLOGY CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark NYSE
Arca Tech 100 NYSE Arca
Index Fund Class A Tech 100 Morningstar
Shares Index++ Technology Category
Jul-01 $ 9,450 $10,000 $10,000
Jul-02 $ 6,169 $ 6,592 $ 5,468
Jul-03 $ 8,012 $ 8,627 $ 6,930
Jul-04 $ 9,037 $ 9,804 $ 7,287
Jul-05 $10,729 $11,716 $ 8,517
Jul-06 $10,190 $11,190 $ 8,293
Jul-07 $12,351 $13,623 $10,572
Jul-08 $11,584 $12,818 $ 9,458
Jul-09 $10,141 $11,266 $ 8,383
Jul-10 $11,782 $13,087 $ 9,745
Jul-11 $14,747 $16,626 $11,962
Jan-12 $15,253 $17,280 $11,868
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
---------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR 10 YEAR EXPENSE EXPENSE
RETURN RETURN RETURN RETURN RETURN RATIO++ RATIO++
---------------------------------------------------------------------------------------------------------------
Fiduciary Shares 3.56% 6.00% 24.80%+ 5.45%+ 5.08%+ 1.02% 0.83%
---------------------------------------------------------------------------------------------------------------
Class A Shares 3.43% 5.70% 24.51% 5.31% 5.01% 1.27% 1.08%
---------------------------------------------------------------------------------------------------------------
Class A Shares w/load* -2.27% -0.12% 22.18% 4.12% 4.42% 1.27% 1.08%
---------------------------------------------------------------------------------------------------------------
Class B Shares 3.10% 5.05% 23.72% 4.59% 4.27% 1.77% 1.68%
---------------------------------------------------------------------------------------------------------------
Class B Shares w/load** -1.90% 0.05% 23.06% 4.25% 4.27% 1.77% 1.68%
---------------------------------------------------------------------------------------------------------------
Class C Shares 3.11% 5.06% 23.72% 4.60% 4.27% 1.77% 1.68%
---------------------------------------------------------------------------------------------------------------
Class C Shares w/load*** 2.11% 4.06% 23.72% 4.60% 4.27% 1.77% 1.68%
---------------------------------------------------------------------------------------------------------------
NYSE Arca Tech 100 Index 3.93% 6.79% 26.02% 6.48% N/A -- --
---------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
THE FUND'S INVESTMENT IN TECHNOLOGY-RELATED COMPANIES EXPOSES THE FUND TO RISKS
ASSOCIATED WITH ECONOMIC CONDITIONS IN THE TECHNOLOGY MARKET TO A GREATER EXTENT
THAN FUNDS NOT CONCENTRATED IN THE TECHNOLOGY SECTOR. DUE TO INTENSE GLOBAL
COMPETITION, A LESS DIVERSIFIED PRODUCT LINE AND OTHER FACTORS, COMPANIES THAT
DEVELOP AND/OR RELY ON TECHNOLOGY COULD BECOME INCREASINGLY SENSITIVE TO
DOWNSWINGS IN THE ECONOMY. IN THE PAST, SUCH COMPANIES HAVE ALSO EXPERIENCED
VOLATILE SWINGS IN DEMAND FOR THEIR PRODUCTS AND SERVICES DUE TO CHANGING
ECONOMIC CONDITIONS, RAPID TECHNOLOGICAL ADVANCES AND SHORTER PRODUCT LIFE
SPANS.
+ The performance presented links the performance of Class A Shares from ten
years ago with the performance of Fiduciary Shares on July 23, 2009. Class
A Share performance has not been adjusted to reflect expenses applicable
to Fiduciary Shares; with those adjustments, performance would be higher
than that shown.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 5.00%.
*** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 23
TOP TEN HOLDINGS
COMPANY* % OF
PORTFOLIO
PIER 1 IMPORTS 2.7%
ONYX PHARMACEUTICALS 2.2
PRIMERICA 2.0
COMTECH TELECOMMUNICATIONS 1.9
MANHATTAN ASSOCIATES 1.9
CLEAN HARBORS 1.6
PNM RESOURCES 1.5
COLUMBIA SPORTSWEAR 1.4
SAUER-DANFOSS 1.4
EXTRA SPACE STORAGE REIT 1.4
FUND SECTORS
SECTOR % OF
PORTFOLIO
FINANCIALS 21.7%
INFORMATION TECHNOLOGY 20.2
CONSUMER DISCRETIONARY 15.7
HEALTH CARE 13.3
INDUSTRIAL 13.0
MATERIALS 5.4
ENERGY 4.5
UTILITIES 2.5
CONSUMER STAPLES 2.4
REPURCHASE AGREEMENT 1.3
* EXCLUDES SHORT-TERM SECURITIES.
SMALL CAP CORE FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Small Cap Core Fund
(the "Fund") produced a total return of -2.62% (Class A Shares without load). In
comparison, the Fund's benchmark, the unmanaged Russell 2000 Index, returned
0.22% for the same period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by high volatility and a
changing global economic environment. Concerns over the continuing sovereign
debt crisis in Europe, and fears of its potential impact in other geographical
regions, contributed to extreme volatility in financial markets both in the
United States and abroad. Investors dealt with structural market imbalances, and
consumers continued to deleverage across the globe. These fears began to subside
late in the reporting period as European leaders took steps to control their
currency crisis, and signs of organic economic growth in the United States, such
as employment expansion and stability in the housing process, began to emerge.
Markets accelerated as these trends emerged, and the high correlations and
volatility experienced during the period subsided dramatically.
The small cap environment was one of considerable weaknesses early in the
reporting period. However, the U.S. dollar strengthened throughout the reporting
period, the effects of which rippled through financial markets causing
domestically focused companies, including small caps, to perform well.
Most of the Fund's active sector weights, while slight, were detrimental during
the reporting period, most notably an underweight in the energy and telecom
services sectors. Most of the value added to performance was provided by
individual stock selection.
Specific stocks that contributed to performance include Pier One Imports, Extra
Space Storage and Manhattan Associates.
Specific stocks that detracted from performance include pharmaceutical company
InterMune, Columbia Sportswear and American Science and Engineering.
Unfortunately, the Fund was not able to overcome these drags on performance, and
it underperformed its benchmark for the reporting period.
24 HIGHMARK(R) FUNDS
HIGHMARK SMALL CAP CORE FUND
INVESTMENT OBJECTIVE
HIGHMARK SMALL CAP CORE FUND SEEKS LONG-TERM CAPITAL APPRECIATION.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
DAVID GOERZ
HIGHMARK CAPITAL MANAGEMENT, INC.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
DEREK IZUEL
HIGHMARK CAPITAL MANAGEMENT, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK SMALL CAP
CORE FUND VERSUS THE RUSSELL 2000 INDEX, THE MORNINGSTAR SMALL BLEND CATEGORY
AND THE MORNINGSTAR SMALL VALUE CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark Small Cap
Core Fund, Russell 2000 Morningstar Small Morningstar Small
Class A Shares Index++ Value Category+ Blend Category
01-03-07 $9,452 $10,000 $10,000 $10,000
Jul-07 $8,894 $ 9,861 $ 9,842 $10,038
Jul-08 $7,850 $ 9,199 $ 9,660 $ 8,934
Jul-09 $5,646 $ 7,293 $ 7,949 $ 7,110
Jul-10 $6,936 $ 8,637 $ 9,638 $ 8,433
Jul-11 $9,156 $10,703 $11,578 $10,460
JAN-12 $8,916 $10,727 $11,657 $10,422
+ Benchmark changed from Morningstar Small Value Category to Morningstar
Small Blend Category effective July 30, 2011.
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
----------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR SINCE EXPENSE EXPENSE
RETURN RETURN RETURN INCEPTION RATIO++ RATIO++
----------------------------------------------------------------------------------------------------
Fiduciary Shares -2.44% 1.96% 24.49% -0.90% 1.77% 1.38%
----------------------------------------------------------------------------------------------------
Class A Shares -2.62% 1.64% 24.10% -1.18% 2.02% 1.63%
----------------------------------------------------------------------------------------------------
Class A Shares w/load* -7.97% -3.98% 21.77% -2.31% 2.02% 1.63%
----------------------------------------------------------------------------------------------------
Class C Shares -2.90% 1.00% 23.35% -1.85% 2.52% 2.23%
----------------------------------------------------------------------------------------------------
Class C Shares w/load** -3.87% 0.00% 23.35% -1.85% 2.52% 2.23%
----------------------------------------------------------------------------------------------------
Russell 2000 Index 0.22% 2.86% 23.03% 1.43% -- --
----------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
IN ADDITION TO THE NORMAL RISKS ASSOCIATED WITH EQUITY INVESTING, INVESTING IN
SMALL CAP COMPANIES MAY INVOLVE ADDITIONAL RISK BECAUSE, AS SMALL CAP COMPANIES
ARE FREQUENTLY IN THE EARLY STAGES OF GROWTH, THEIR STOCKS TEND TO FLUCTUATE IN
VALUE.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 25
TOP TEN HOLDINGS
COMPANY* % OF
PORTFOLIO
MICROSOFT 4.9%
WELLS FARGO 3.9
ROYAL DUTCH SHELL PLC, ADR 2.8
CHEVRON 2.7
PHILIP MORRIS INTERNATIONAL 2.7
INTEL 2.6
UNITEDHEALTH GROUP 2.6
TARGET 2.5
PFIZER 2.5
COMCAST, CL A 2.4
FUND SECTORS
SECTOR % OF
PORTFOLIO
INDUSTRIAL 17.1%
FINANCIALS 14.9
CONSUMER DISCRETIONARY 14.6
INFORMATION TECHNOLOGY 14.0
ENERGY 13.3
CONSUMER STAPLES 11.7
HEALTH CARE 10.6
REGISTERED INVESTMENT COMPANY 1.6
MATERIALS 1.4
UTILITIES 0.8
* EXCLUDES SHORT-TERM SECURITIES.
VALUE MOMENTUM FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Value Momentum Fund
(the "Fund") produced a total return of -0.18% (Class A Shares without load). In
comparison, the Fund's benchmark, the unmanaged S&P 500 Index, returned 2.71%
for the same period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by challenging global
conditions and a slow-growth economic recovery. Concerns over the continuing
sovereign debt crisis in Europe, and fears of its potential impact in other
geographical regions, contributed to extreme volatility in financial markets
both in the United States and abroad. Investors dealt with structural market
imbalances, and consumers continued to deleverage across the globe. Despite
these challenges, signs of improvement did occur. The domestic unemployment rate
declined in five of the months of the reporting period, and housing prices
stabilized.
From a sector perspective, the consumer discretionary, information technology
and industrials sectors positively impacted performance, while allocations to
the financials and energy sectors detracted from performance.
Intel Corp., Microsoft and Home Depot were top contributors to the Fund's
performance. Bank of America, Halliburton, JPMorgan Chase and Heineken NV were
top detractors from performance.
Unfortunately, the Fund was not able to overcome the abovementioned drags on
performance, and it underperformed its benchmark for the reporting period.
26 HIGHMARK(R) FUNDS
HIGHMARK VALUE MOMENTUM FUND
INVESTMENT OBJECTIVE
HIGHMARK VALUE MOMENTUM FUND SEEKS LONG-TERM CAPITAL GROWTH; CURRENT INCOME IS A
SECONDARY OBJECTIVE.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
KEITH STRIBLING
HIGHMARK CAPITAL MANAGEMENT, INC.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
TODD LOWENSTEIN
HIGHMARK CAPITAL MANAGEMENT, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK VALUE
MOMENTUM FUND VERSUS THE S&P 500 INDEX, THE RUSSELL 1000 VALUE INDEX AND THE
MORNINGSTAR LARGE VALUE CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark Value
Momentum Fund Russell 1000 Value Morningstar Large
Class A Shares S&P 500 Index++ Index++ Value Category
Jul-01 $ 9,450 $10,000 $10,000 $10,000
Jul-02 $ 7,536 $ 7,638 $ 8,276 $ 8,102
Jul-03 $ 8,270 $ 8,451 $ 9,165 $ 8,790
Jul-04 $ 9,541 $ 9,564 $10,786 $10,134
Jul-05 $11,129 $10,907 $12,838 $11,735
Jul-06 $12,138 $11,494 $14,326 $12,698
Jul-07 $14,089 $13,348 $16,258 $14,514
Jul-08 $12,227 $11,868 $13,795 $12,334
Jul-09 $ 9,378 $ 9,499 $10,630 $ 9,849
Jul-10 $10,614 $10,814 $12,266 $11,105
Jul-11 $12,749 $12,939 $14,322 $12,939
Jan-12 $12,726 $13,289 $14,571 $13,088
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
--------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR 10 YEAR EXPENSE EXPENSE
RETURN RETURN RETURN RETURN RETURN RATIO++ RATIO++
--------------------------------------------------------------------------------------------------------------------------------
Fiduciary Shares -0.11% 1.23% 18.12% -1.48% 3.87% 1.13% 1.02%
--------------------------------------------------------------------------------------------------------------------------------
Class A Shares -0.18% 1.00% 17.85% -1.72% 3.60% 1.38% 1.27%
--------------------------------------------------------------------------------------------------------------------------------
Class A Shares w/load* -5.65% -4.57% 15.65% -2.83% 3.02% 1.38% 1.27%
--------------------------------------------------------------------------------------------------------------------------------
Class B Shares -0.46% 0.36% 17.14% -2.31% 2.97% 1.88% 1.87%
--------------------------------------------------------------------------------------------------------------------------------
Class B Shares w/load** -5.20% -4.40% 16.41% -2.59% 2.97% 1.88% 1.87%
--------------------------------------------------------------------------------------------------------------------------------
Class C Shares -0.50% 0.39% 17.15% -2.30% 2.97% 1.88% 1.87%
--------------------------------------------------------------------------------------------------------------------------------
Class C Shares w/load*** -1.45% -0.56% 17.15% -2.30% 2.97% 1.88% 1.87%
--------------------------------------------------------------------------------------------------------------------------------
Class U Shares -0.05%+ 1.30%+ 18.15%+ -1.46%+ 3.87%+ 0.88% 0.87%
--------------------------------------------------------------------------------------------------------------------------------
S&P 500 Index 2.71% 4.22% 19.24% 0.33% 3.52% -- --
--------------------------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
+ The performance presented links the performance of Fiduciary Shares from
ten years ago with the performance of Class U Shares, which commenced
investment operations on January 4, 2012. Fiduciary Share performance has
not been adjusted to reflect expenses applicable to Class U Shares. With
those adjustments, performance would be higher than that shown.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 5.00%.
*** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 27
FUND SECTORS
SECTOR % OF
PORTFOLIO
AFFILIATED EQUITY REGISTERED INVESTMENT COMPANIES 83.3%
EQUITY REGISTERED INVESTMENT COMPANIES 7.2
AFFILIATED FIXED INCOME REGISTERED INVESTMENT COMPANIES 5.7
FIXED INCOME REGISTERED INVESTMENT COMPANY 2.4
REPURCHASE AGREEMENT 1.4
TACTICAL CAPITAL GROWTH ALLOCATION FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Tactical Capital
Growth Allocation Fund (the "Fund") produced a total return of -1.15% (Class A
Shares without load). In comparison, the Fund's benchmark of an 80/15/5% blend
of the S&P 500 Index, the Barclays Capital U.S. Aggregate Bond Index, and the
Citigroup 3-Month Treasury Bill Index, respectively, returned 2.99% for the same
period.
FACTORS AFFECTING PERFORMANCE
Global equities struggled during the six-month period, with the S&P 500 index
returning 2.71%, international stocks (MSCI EAFE) returning -10.42% and emerging
market equities (MSCI EM) returning -14.20%. Growth stocks outperformed value
stocks during the period. The Russell 1000 Growth Index (2.84%) outperformed the
Russell 1000 Value Index (1.74%). Small- and mid-cap stocks underperformed
large-cap stocks with the Russell 2000 Index and Russell Midcap Index returning
0.22% and 0.25%, respectively. Bonds rose, with the Barclays Capital U.S.
Aggregate Bond Index returning 4.25%. However, high-yield bonds returned just
1.14% for the six-month period. Europe continued to dominate the headlines,
which created headwinds for global equities, particularly non-U.S. stocks, as
concerns grew over a possible European contagion slowing global economic growth.
It is worth noting that the Fund tended to carry international equity, small-cap
and high-yield exposures, which significantly underperformed U.S. markets, and
these asset classes are not represented in the Fund's blended U.S. benchmark.
During the period, the Fund maintained a tactical asset allocation that was
overweight to global equities and underweight to bonds, compared to the Fund's
target weights. Overweight exposure to U.S. equities and an underweight to
developed international markets added value. However, overweight exposure to
emerging markets and an underweight exposure to bonds detracted from
performance. The Fund maintained tactical overweight exposures to equities,
favoring U.S. and emerging markets, as well as equity tilts toward small-cap,
mid-cap, REITs, technology, health care and industrials sectors. During the
reporting period, the Fund benefited from an overweight to the technology,
industrial and health care sectors. Within the Fund's fixed income allocation,
its underweight positions in intermediate bonds and allocation and overweight to
the high-yield sector detracted from performance. Positions in HighMark Equity
Income Fund and HighMark Geneva Small Cap Growth Fund were increased on a
relative basis, while the positions in HighMark Fundamental Equity Fund and
JPMorgan Small Cap Growth Fund were sold. In the final weeks of January, the
Fund began to modestly reduce its overweight in global equities following a
strong rebound off October lows.
The underlying equity funds held in the portfolios had mixed returns during the
reporting period. The positions in HighMark Large Cap Core Equity Fund, Highmark
Geneva Mid Cap Growth Fund, HighMark Geneva Small Cap Growth Fund, HighMark
Cognitive Value Fund, Lazard Emerging Markets Equity Portfolio, Fidelity Advisor
Industrial Fund and Vanguard Healthcare Fund all outperformed their benchmarks.
HighMark Large Cap Growth Fund, HighMark Large Cap Value Fund, HighMark Value
Momentum Fund, HighMark Small Cap Core Fund, HighMark International
Opportunities Fund, HighMark Enhanced Growth Fund, HighMark NYSE Arca Tech 100
Index Fund and Morgan Stanley Institutional U.S. Real Estate Portfolio
underperformed their benchmarks.
Fixed income indexes were positive during the reporting period, with the
Barclays Capital Aggregate Bond Index returning 4.25%. With respect to the
underlying fixed income fund holdings, HighMark Short-Term Bond Fund and Eaton
Vance Income Fund of Boston, outperformed their benchmarks, while HighMark Bond
Fund underperformed its benchmark for the reporting period.
28 HIGHMARK(R) FUNDS
HIGHMARK TACTICAL CAPITAL GROWTH ALLOCATION FUND
INVESTMENT OBJECTIVE
HIGHMARK TACTICAL CAPITAL GROWTH ALLOCATION FUND PRIMARILY SEEKS CAPITAL
APPRECIATION.
[PHOTO OMITTED]
PORTFOLIO MANAGER
DAVID GOERZ
HIGHMARK CAPITAL MANAGEMENT, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK TACTICAL
CAPITAL GROWTH ALLOCATION FUND VERSUS THE S&P 500 INDEX; THE BARCLAYS CAPITAL
U.S. AGGREGATE BOND INDEX; THE CITIGROUP 3-MONTH TREASURY BILL INDEX; AN
UNMANAGED BLENDED INDEX OF 80% S&P 500 INDEX, 15% BARCLAYS CAPITAL U.S.
AGGREGATE BOND INDEX AND 5% CITIGROUP 3-MONTH TREASURY BILL INDEX AND THE
MORNINGSTAR LARGE BLEND CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark Tactical Capital 80/15/5 Hybrid^ of Barclays Capital Citigroup
Growth Allocation the following U.S. Aggregate Bond 3-Month Treasury Morningstar Large
Fund Class A Shares indexes: S&P 500 Index++ Index++ Bill Index++ Blend Category
10-12-04 $ 9,450 $10,000 $10,000 $10,000 $10,000 $10,000
Jul-05 $10,511 $10,971 $11,159 $10,226 $10,192 $11,268
Jul-06 $11,071 $11,493 $11,759 $10,375 $10,613 $11,827
Jul-07 $12,643 $13,101 $13,656 $10,954 $11,150 $13,697
Jul-08 $11,276 $12,074 $12,142 $11,628 $11,490 $12,219
Jul-09 $ 9,282 $10,293 $ 9,718 $12,541 $11,565 $ 9,812
Jul-10 $10,567 $11,592 $11,063 $13,658 $11,579 $11,046
Jul-11 $12,460 $13,565 $13,237 $14,265 $11,594 $13,087
Jan-12 $12,316 $13,971 $13,596 $14,871 $11,596 $13,169
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
^ The since inception return shown for the index is calculated from October
31, 2004.
--------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR SINCE EXPENSE EXPENSE
RETURN RETURN RETURN RETURN INCEPTION RATIO++ RATIO++
--------------------------------------------------------------------------------------------------------------------------------
Fiduciary Shares -0.99% -0.10% 17.99% 0.07%+ 0.76%+ 1.97% 1.37%
--------------------------------------------------------------------------------------------------------------------------------
Class A Shares -1.15% -0.37% 17.69% -0.19% 3.69% 2.22% 1.62%
--------------------------------------------------------------------------------------------------------------------------------
Class A Shares w/load* -6.58% -5.83% 15.49% -1.32% 2.89% 2.22% 1.62%
--------------------------------------------------------------------------------------------------------------------------------
Class C Shares -1.47% -1.05% 16.89% -0.88% 2.97% 2.72% 2.32%
--------------------------------------------------------------------------------------------------------------------------------
Class C Shares w/load** -2.46% -2.04% 16.89% -0.88% 2.97% 2.72% 2.32%
--------------------------------------------------------------------------------------------------------------------------------
Blend of 80% S&P 500 Index,
15% Barclays Capital U.S.
Aggregate Bond Index
and 5% Citigroup 3-Month
Treasury Bill Index 2.99% 4.88% 16.68% 1.60% 4.66% -- --
--------------------------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
THE FUND IS STRUCTURED AS A FUND-OF-FUNDS AND IS SUBJECT TO THE SAME RISKS AS
THE UNDERLYING FUNDS IN WHICH IT INVESTS. IN ADDITION, THE FUND INDIRECTLY PAYS
A PORTION OF THE EXPENSES INCURRED BY THE UNDERLYING FUNDS. THE VALUE OF THE
FUND WILL FLUCTUATE IN RESPONSE TO CHANGES IN THE SHARE PRICES OF THE
INVESTMENTS THAT IT OWNS. THERE IS NO GUARANTEE THAT THE FUND'S PRINCIPAL VALUE
WILL INCREASE. IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
+ The performance presented links the performance of Class A Shares from
October 12, 2004 with performance of Fiduciary Shares, which commenced
investment operations on November 15, 2006. Class A Share performance has
not been adjusted to reflect expenses applicable to Fiduciary Shares. With
those adjustments, performance would be higher than that shown.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 29
FUND SECTORS
SECTOR % OF
PORTFOLIO
AFFILIATED EQUITY REGISTERED INVESTMENT COMPANIES 64.1%
AFFILIATED FIXED INCOME REGISTERED INVESTMENT COMPANIES 21.5
EQUITY REGISTERED INVESTMENT COMPANIES 5.3
FIXED INCOME REGISTERED INVESTMENT COMPANY 4.7
REPURCHASE AGREEMENT 4.4
TACTICAL GROWTH & INCOME ALLOCATION FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Tactical Growth and
Income Allocation Fund (the "Fund") produced a total return of -0.19% (Class A
Shares without load). In comparison, the Fund's benchmark of a 60/35/5% blend of
the S&P 500 Index, the Barclays Capital U.S. Aggregate Bond Index and the
Citigroup 3-Month Treasury Bill Index, respectively, returned 3.40% for the same
period.
FACTORS AFFECTING PERFORMANCE
Global equities struggled during the six-month period, with the S&P 500 index
returning 2.71%, international stocks (MSCI EAFE) returning -10.42% and emerging
market equities (MSCI EM) returning -14.20%. Growth stocks outperformed value
stocks during the period. The Russell 1000 Growth Index (2.84%) outperformed the
Russell 1000 Value Index (1.74%). Small- and mid-cap stocks underperformed
large-cap stocks with the Russell 2000 Index and Russell Midcap Index returning
0.22% and 0.25%, respectively. Bonds rose, with the Barclays Capital U.S.
Aggregate Bond Index returning 4.25%. However, high-yield bonds returned just
1.14% for the six-month period. Europe continued to dominate the headlines,
which created headwinds for global equities, particularly non-U.S. stocks, as
concerns grew over a possible European contagion slowing global economic growth.
It is worth noting that the Fund tended to carry international equity, small-cap
and high-yield exposures, which significantly underperformed U.S. markets, and
these asset classes are not represented in the Fund's blended U.S. benchmark.
During the period, the Fund maintained a tactical asset allocation that was
overweight to global equities and underweight to bonds, compared to the Fund's
target weights. Overweight exposure to U.S. equities and an underweight to
developed international markets added value. However, overweight exposure to
emerging markets and an underweight exposure to bonds detracted from
performance. The Fund maintained tactical overweight exposures to equities,
favoring U.S. and emerging markets, as well as equity tilts toward small-cap,
mid-cap, REITs, technology, health care and industrials sectors. During the
reporting period, the Fund benefited from an overweight to the technology,
industrial and health care sectors. Within the Fund's fixed income allocation,
its underweight positions in intermediate bonds and allocation and overweight to
the high-yield sector detracted from performance. Positions in HighMark Equity
Income Fund and HighMark Geneva Small Cap Growth Fund were increased on a
relative basis, while the positions in HighMark Fundamental Equity Fund and
JPMorgan Small Cap Growth Fund were sold. In the final weeks of January, the
Fund began to modestly reduce its overweight in global equities following a
strong rebound off October lows.
The underlying equity funds held in the portfolios had mixed returns during the
reporting period. The positions in HighMark Large Cap Core Equity Fund, Highmark
Geneva Mid Cap Growth Fund, HighMark Geneva Small Cap Growth Fund, HighMark
Cognitive Value Fund, Lazard Emerging Markets Equity Portfolio, Fidelity Advisor
Industrial Fund and Vanguard Healthcare Fund all outperformed their benchmarks.
HighMark Large Cap Growth Fund, HighMark Large Cap Value Fund, HighMark Value
Momentum Fund, HighMark Small Cap Core Fund, HighMark International
Opportunities Fund, HighMark Enhanced Growth Fund, HighMark NYSE Arca Tech 100
Index Fund and Morgan Stanley Institutional U.S. Real Estate Portfolio
underperformed their benchmarks.
Fixed income indexes were positive during the reporting period, with the
Barclays Capital Aggregate Bond Index returning 4.25%. With respect to the
underlying fixed income fund holdings, HighMark Short-Term Bond Fund and Eaton
Vance Income Fund of Boston, outperformed their benchmarks, while HighMark Bond
Fund underperformed its benchmark for the reporting period.
30 HIGHMARK(R) FUNDS
HIGHMARK TACTICAL GROWTH & INCOME ALLOCATION FUND
INVESTMENT OBJECTIVE
HIGHMARK TACTICAL GROWTH & INCOME ALLOCATION FUND SEEKS CAPITAL APPRECIATION AND
INCOME.
[PHOTO OMITTED]
PORTFOLIO MANAGER
DAVID GOERZ
HIGHMARK CAPITAL MANAGEMENT, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK TACTICAL
GROWTH & INCOME ALLOCATION FUND VERSUS THE S&P 500 INDEX; THE BARCLAYS CAPITAL
U.S. AGGREGATE BOND INDEX; THE CITIGROUP 3-MONTH U.S. TREASURY BILL INDEX; AN
UNMANAGED BLENDED INDEX OF 60% S&P 500 INDEX, 35% BARCLAYS CAPITAL U.S.
AGGREGATE BOND INDEX AND 5% CITIGROUP 3-MONTH U.S. TREASURY BILL INDEX AND THE
MORNINGSTAR MODERATE ALLOCATION CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark Tactical
Growth & Morningstar
Income 60/35/5 Hybrid^ Barclays Capital Citigroup 3-Month Moderate
Allocation Fund of the following U.S. Aggregate U.S. Treasury Bill Allocation
Class A Shares indexes: S&P 500 Index++ Bond Index++ Index++ Category
10-12-04 $ 9,450 $10,000 $10,000 $10,000 $10,000 $10,000
Jul-05 $10,286 $10,784 $11,159 $10,226 $10,192 $10,992
Jul-06 $10,740 $11,214 $11,759 $10,375 $10,613 $11,534
Jul-07 $12,039 $12,545 $13,656 $10,952 $11,150 $12,953
Jul-08 $11,146 $11,990 $12,142 $11,626 $11,490 $12,155
Jul-09 $ 9,776 $10,883 $ 9,718 $12,538 $11,565 $10,723
Jul-10 $11,008 $12,162 $11,063 $13,656 $11,579 $11,998
Jul-11 $12,634 $13,851 $13,237 $14,262 $11,594 $13,666
Jan-12 $12,610 $14,322 $13,596 $14,868 $11,596 $13,709
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
^ The since inception return shown for the index is calculated from October
31, 2004.
-------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR SINCE EXPENSE EXPENSE
RETURN RETURN RETURN RETURN INCEPTION RATIO++ RATIO++
-------------------------------------------------------------------------------------------------------------------------------
Fiduciary Shares -0.06% 1.22% 15.71% 1.55%+ 2.06%+ 1.83% 1.29%
-------------------------------------------------------------------------------------------------------------------------------
Class A Shares -0.19% 0.96% 15.42% 1.31% 4.03% 2.08% 1.54%
-------------------------------------------------------------------------------------------------------------------------------
Class A Shares w/load* -5.68% -4.58% 13.25% 0.17% 3.23% 2.08% 1.54%
-------------------------------------------------------------------------------------------------------------------------------
Class C Shares -0.53% 0.28% 14.63% 0.60% 3.30% 2.58% 2.24%
-------------------------------------------------------------------------------------------------------------------------------
Class C Shares w/load** -1.53% -0.72% 14.63% 0.60% 3.30% 2.58% 2.24%
-------------------------------------------------------------------------------------------------------------------------------
Blend of 60% S&P 500 Index,
35% Barclays Capital
U.S. Aggregate Bond Index
and 5% Citigroup 3-Month
Treasury Bill Index 3.40% 5.87% 14.42% 3.01% 5.02% -- --
-------------------------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
THE FUND IS STRUCTURED AS A FUND-OF-FUNDS AND IS SUBJECT TO THE SAME RISKS AS
THE UNDERLYING FUNDS IN WHICH IT INVESTS. IN ADDITION, THE FUND INDIRECTLY PAYS
A PORTION OF THE EXPENSES INCURRED BY THE UNDERLYING FUNDS. THE VALUE OF THE
FUND WILL FLUCTUATE IN RESPONSE TO CHANGES IN THE SHARE PRICES OF THE
INVESTMENTS THAT IT OWNS. THERE IS NO GUARANTEE THAT THE FUND'S PRINCIPAL VALUE
WILL INCREASE. IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
+ The performance presented links the performance of Class A Shares from
October 12, 2004 with performance of Fiduciary Shares, which commenced
investment operations on November 15, 2006. Class A Share performance has
not been adjusted to reflect expenses applicable to Fiduciary Shares. With
those adjustments, performance would be higher than that shown.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 5.50% front-end sales charge.
** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 31
TOP TEN HOLDINGS
HOLDING* % OF
PORTFOLIO
U.S. TREASURY NOTE
3.000%, 09/30/16 4.4%
FNMA
3.500%, 10/01/26 1.9
U.S. TREASURY NOTE
1.875%, 06/30/15 1.9
TIME WARNER ENTERTAINMENT
8.375%, 03/15/23 1.7
FNMA
4.500%, 04/01/18 1.7
GENERAL ELECTRIC CAPITAL
3.350%, 10/17/16 1.7
GE GLOBAL INSURANCE
7.750%, 05/15/30 1.6
VERIZON NEW ENGLAND
7.875%, 11/15/29 1.6
METROPOLITAN WATER DISTRICT OF
SOUTHERN CALIFORNIA, BUILD
AMERICA BONDS, TAXABLE, RB
6.947%, 07/01/40 1.5
CS FIRST BOSTON MORTGAGE SECURITIES,
SERIES 2005-C1, C1 A 4
5.014%, 02/15/38 1.4
FUND SECTORS
SECTOR % OF
PORTFOLIO
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS 13.7%
FINANCIALS 13.3
MORTGAGE-BACKED SECURITIES 11.9
U.S. TREASURY OBLIGATIONS 10.3
CONSUMER DISCRETIONARY 7.1
ASSET-BACKED SECURITIES 6.6
ENERGY 6.0
MATERIALS 4.4
TAXABLE MUNICIPAL BONDS 4.3
INDUSTRIAL 4.3
HEALTH CARE 4.2
TELECOMMUNICATION SERVICES 4.0
UTILITIES 3.4
REGISTERED INVESTMENT COMPANY 3.1
FOREIGN GOVERNMENTS 1.8
INFORMATION TECHNOLOGY 1.6
* EXCLUDES SHORT-TERM SECURITIES.
BOND FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Bond Fund (the "Fund")
produced a total return of 3.49% (Class A Shares without load). In comparison,
the Fund's benchmark, the unmanaged Barclays Capital U.S. Aggregate Bond index,
returned 4.25% for the same period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by challenging global
conditions and a slow-growth economic recovery. Concerns over the continuing
sovereign debt crisis in Europe, and fears of its potential impact in other
geographical regions, contributed to extreme volatility in financial markets
both in the United States and abroad. Investors dealt with structural market
imbalances, and consumers continued to deleverage across the globe. Despite
these challenges, signs of improvement did occur. The domestic unemployment rate
declined in five of the months of the reporting period, and housing prices
stabilized.
Early in the reporting period, bond yields in Italy and Spain reached new
post-euro highs above 7%, and the yield premium relative to Germany also reached
record levels. The European Central Bank began buying the sovereign debt of its
member countries, particularly Italy and Spain, in an attempt to decrease yields
and support financial markets. Corporate spreads widened, and a stock sell-off
ensued as a result. In December, the European Central Bank announced three-year
term funding for European banks, which once again led to a narrowing of spreads
and a stock market rally.
This volatility resulted in a flight to quality and significant outperformance
of both the 10-year and 30-year Treasury bonds. The Short Term (1-3 year)
corporate index outperformed by four basis points, while the Bond Fund corporate
benchmark underperformed by 264 basis points, a dramatic difference between the
two indices. The Fund is overweight in corporate bonds as well as overweight in
asset-backed securities.
The Fund's defensive nature and the shorter duration of its holdings detracted
from the Fund's performance, and it underperformed its benchmark for the
reporting period.
32 HIGHMARK(R) FUNDS
HIGHMARK BOND FUND
INVESTMENT OBJECTIVE
HIGHMARK BOND FUND SEEKS TOTAL RETURN THROUGH INVESTMENTS IN FIXED-INCOME
SECURITIES.
[PHOTO OMITTED]
LEAD PORTFOLIO MANAGER
JACK MONTGOMERY
HIGHMARK CAPITAL MANAGEMENT, INC.
[PHOTO OMITTED]
PORTFOLIO MANAGER
GREGORY LUGOSI
HIGHMARK CAPITAL MANAGEMENT, INC.
[PHOTO OMITTED]
PORTFOLIO MANAGER
JEFFREY KLEIN
HIGHMARK CAPITAL MANAGEMENT, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK BOND FUND
VERSUS THE BARCLAYS CAPITAL U.S. AGGREGATE BOND INDEX AND THE MORNINGSTAR
INTERMEDIATE-TERM BOND CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark Bond Barclays Capital Morningstar
Fund Class A U.S. Aggregate Intermediate-Term
Shares Bond Index++ Bond Category
Jul-01 $ 9,775 $10,000 $10,000
Jul-02 $10,169 $10,753 $10,482
Jul-03 $10,813 $11,336 $11,112
Jul-04 $11,296 $11,884 $11,613
Jul-05 $11,765 $12,454 $12,119
Jul-06 $11,853 $12,636 $12,253
Jul-07 $12,459 $13,338 $12,851
Jul-08 $13,111 $14,158 $13,113
Jul-09 $14,105 $15,270 $13,797
Jul-10 $15,527 $16,630 $15,387
Jul-11 $16,317 $17,369 $16,210
Jan-12 $16,887 $18,107 $16,691
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
-------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR 10 YEAR EXPENSE EXPENSE
RETURN RETURN RETURN RETURN RETURN RATIO++ RATIO++
-------------------------------------------------------------------------------------------------------------------------------
Fiduciary Shares 3.55% 7.70% 8.81% 6.89% 5.65% 1.01% 0.72%
-------------------------------------------------------------------------------------------------------------------------------
Class A Shares 3.49% 7.47% 8.54% 6.63% 5.41% 1.26% 0.97%
-------------------------------------------------------------------------------------------------------------------------------
Class A Shares w/load* 1.15% 5.09% 7.73% 6.14% 5.16% 1.26% 0.97%
-------------------------------------------------------------------------------------------------------------------------------
Class B Shares 3.03% 6.70% 7.77% 5.89% 4.65% 1.76% 1.65%
-------------------------------------------------------------------------------------------------------------------------------
Class B Shares w/load** -1.95% 1.70% 6.91% 5.57% 4.65% 1.76% 1.65%
-------------------------------------------------------------------------------------------------------------------------------
Class C Shares 3.19% 6.95% 8.07% 6.23% 5.08%+ 1.51% 1.40%
-------------------------------------------------------------------------------------------------------------------------------
Class C Shares w/load*** 2.20% 5.95% 8.07% 6.23% 5.08%+ 1.51% 1.40%
-------------------------------------------------------------------------------------------------------------------------------
Barclays Capital U.S. Aggregate
Bond Index 4.25% 8.66% 7.40% 6.70% 5.78% -- --
-------------------------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
BONDS AND BOND FUNDS WILL TYPICALLY DECREASE IN VALUE AS INTEREST RATES RISE.
+ The performance presented links the performance of Fiduciary Shares from
ten years ago with the performance of Class C Shares on November 28, 2003.
Fiduciary Share performance does not reflect higher expenses applicable to
this Class. With those adjustments, performance would be lower than that
shown.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 2.25% front-end sales charge. Prior to December 1, 2005, the
front-end sales charge was 3.25%.
** Reflects maximum CDSC of 5.00%.
*** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 33
TOP TEN HOLDINGS
HOLDING* % OF
PORTFOLIO
BAY AREA TOLL AUTHORITY,
SAN FRANCISCO BAY AREA,
SER B-1, RB,
LOC BANK OF AMERICA N.A.
0.030%, 4/1/2045 1.9%
SAN DIEGO, PUBLIC FACILITIES
FINANCING AUTHORITY,
SEWER AUTHORITY, SER B, RB
5.500%, 5/15/2023 1.6
SAN DIEGO COUNTY, REGIONAL
TRANSPORTATION COMMISSION,
LIMITED TAX, SER B, RB,
SPA JPMORGAN CHASE BANK
0.040%, 4/1/2038 1.5
SAN DIEGO COUNTY, WATER
AUTHORITY, COP,
WATER REVENUES, SER A,
AGM INSURED
5.000%, 5/1/2026 1.5
LOS ANGELES,
SER A, GO,
NATIONAL-RE INSURED
5.000%, 9/1/2012 1.4
CLAREMONT, UNIFIED SCHOOL
DISTRICT, GO,
5.000%, 8/1/2028 1.4
CALIFORNIA STATE, DEPARTMENT
OF TRANSPORTATION,
FEDERAL HIGHWAY GRANT,
ANTICIPATION BONDS, SER A, RB,
NATIONAL-RE FGIC INSURED
5.000%, 2/1/2014 1.4
IRVINE RANCH WATER DISTRICT,
SER B, GO
LOC BANK OF AMERICA NA
0.050%, 10/1/2041 1.4
SOUTHERN CALIFORNIA, PUBLIC
POWER AUTHORITY,
POWER PROJECT REVENUE,
CANYON POWER, SER A, RB,
5.000%, 7/1/2025 1.4
SAN FRANCISCO CITY & COUNTY,
EARTHQUAKE SAFETY,
SER E, GO
5.000%, 6/15/2026 1.3
FUND SECTORS
SECTOR % OF
PORTFOLIO
GENERAL OBLIGATIONS 50.0%
REVENUE BONDS 42.1
CERTIFICATE OF PARTICIPATION 7.2
SPECIAL ASSESSMENT 0.7
* EXCLUDES SHORT-TERM SECURITIES.
CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark California
Intermediate Tax-Free Bond Fund (the "Fund") produced a total return of 4.92%
(Class A Shares without load). In comparison, the Fund's benchmark, the
unmanaged Barclays 7-Year Municipal Bond Index, returned 5.95% for the same
period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by challenging global
conditions and a slow-growth economic recovery. Concerns over the continuing
sovereign debt crisis in Europe, and fears of its potential impact in other
geographical regions, contributed to extreme volatility in financial markets
both in the United States and abroad. Investors dealt with structural market
imbalances, and consumers continued to deleverage across the globe. Despite
these challenges, signs of improvement did occur. The domestic unemployment rate
declined in five of the months of the reporting period, and housing prices
stabilized.
The Federal Reserve left the federal funds rate, the rate banks charge to lend
to each other, unchanged from its beginning level in the 0%-0.25% range and
indicated it would remain at this level until 2014. New issuance volume
decreased significantly during the reporting period, due mainly to the lingering
effects of the end of the government's Build America Bonds program. Municipal
credit downgrades significantly outnumbered upgrades during the Fund's reporting
period. However, the actual number of defaults declined from the previous
period.
New York was the nation's largest state of issuance of municipal debt during the
Fund's reporting period. California came in as the second largest issuer, and
Texas was the third largest issuer during the reporting period.
The reporting period was characterized by low yields, concerns about counties'
and municipalities' ability to pay their debts, and volatile markets that
alternated between the risk-on and risk-off trading. The Fund managed to protect
assets in down markets by limiting potential price risk. As risk-taking returned
to the municipal market and default rates fell, lower quality, longer duration
assets outperformed. The high-quality nature of the Fund's investments and their
shorter duration relative to the Fund's benchmark negatively impacted
performance.
As a result, the Fund underperformed its benchmark for the reporting period.
34 HIGHMARK(R) FUNDS
HIGHMARK CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND
INVESTMENT OBJECTIVE
HIGHMARK CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND SEEKS HIGH CURRENT INCOME
THAT IS EXEMPT FROM FEDERAL INCOME TAX AND CALIFORNIA PERSONAL INCOME TAX.
[PHOTO OMITTED]
LEAD PORTFOLIO MANAGER
ROBERT BIGELOW
HIGHMARK CAPITAL MANAGEMENT, INC.
[PHOTO OMITTED]
PORTFOLIO MANAGER
RAYMOND MOW
HIGHMARK CAPITAL MANAGEMENT, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK CALIFORNIA
INTERMEDIATE TAX-FREE BOND FUND VERSUS THE BARCLAYS CAPITAL 7-YEAR MUNICIPAL
BOND INDEX AND THE MORNINGSTAR MUNICIPAL CALIFORNIA INTERMEDIATE/SHORT CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark Morningstar
California Municipal
Intermediate California
Tax-Free Bond Barclays Capital Intermediate
Fund Class A 7-Year Municipal /Short
Shares Bond Index++ Category
Jul-01 $ 9,775 $10,000 $10,000
Jul-02 $10,353 $10,714 $10,561
Jul-03 $10,602 $11,129 $10,767
Jul-04 $10,968 $11,703 $11,202
Jul-05 $11,242 $12,166 $11,630
Jul-06 $11,400 $12,428 $11,862
Jul-07 $11,742 $12,918 $12,253
Jul-08 $12,284 $13,671 $12,488
Jul-09 $12,968 $14,766 $12,816
Jul-10 $13,650 $15,886 $13,788
Jul-11 $13,941 $16,595 $14,167
Jan-12 $14,627 $17,582 $15,045
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
----------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR 10 YEAR EXPENSE EXPENSE
RETURN RETURN RETURN RETURN RETURN RATIO++ RATIO++
----------------------------------------------------------------------------------------------------------------------------------
Fiduciary Shares 5.02% 9.32% 4.75% 5.01% 4.08% 1.02% 0.54%
----------------------------------------------------------------------------------------------------------------------------------
Class A Shares 4.92% 9.10% 4.51% 4.75% 3.85% 1.27% 0.79%
----------------------------------------------------------------------------------------------------------------------------------
Class A Shares w/load* 2.59% 6.62% 3.73% 4.28% 3.61% 1.27% 0.79%
----------------------------------------------------------------------------------------------------------------------------------
Class B Shares 4.68% 8.42% 3.82% 4.04% 3.09% 1.77% 1.49%
----------------------------------------------------------------------------------------------------------------------------------
Class B Shares w/load** -0.33% 3.42% 2.89% 3.69% 3.09% 1.77% 1.49%
----------------------------------------------------------------------------------------------------------------------------------
Class C Shares 4.71% 8.54% 4.04% 4.26% 3.47%+ 1.52% 1.24%
----------------------------------------------------------------------------------------------------------------------------------
Class C Shares w/load*** 3.71% 7.54% 4.04% 4.26% 3.47%+ 1.52% 1.24%
----------------------------------------------------------------------------------------------------------------------------------
Barclays Capital 7-Year Municipal
Bond Index 5.95% 11.78% 6.46% 6.69% 5.55% -- --
----------------------------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
BONDS AND BOND FUNDS WILL TYPICALLY DECREASE IN VALUE AS INTEREST RATES RISE.
+ The performance presented links the performance of Fiduciary Shares from
ten years ago with the performance of Class C Shares on November 28, 2003.
Fiduciary Share performance does not reflect higher expenses applicable to
this Class. With those adjustments, performance would be lower than that
shown.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 2.25% front-end sales charge.
** Reflects maximum CDSC of 5.00%.
*** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 35
TOP TEN HOLDINGS
HOLDING* % OF
PORTFOLIO
MASSACHUSETTS STATE, SCHOOL
BUILDING AUTHORITY,
SALES TAX REVENUE,
SER A, RB, AGM INSURED
5.000%, 08/15/14 3.3%
CLARK COUNTY, LIMITED TAX-BOND
BANK, GO
5.000%, 06/01/25 2.6
ALASKA STATE, INTERNATIONAL AIRPORTS
SYSTEM,
SER D, RB, NATIONAL-RE INSURED
5.000%, 10/01/22 2.1
HONOLULU CITY AND COUNTY,
SER A, GO, NATIONAL-RE INSURED
5.000%, 07/01/25 1.9
IDAHO STATE, HOUSING & FINANCE
ASSOCIATION, GRANT & REVENUE
ANTICIPATION, FEDERAL HIGHWAY TRUST,
SER A, RB
5.250%, 07/15/24 1.9
CHICAGO, O'HARE INTERNATIONAL
AIRPORT REVENUE,
SER B, RB, AGM INSURED
5.000%, 01/01/19 1.8
SAN RAMON VALLEY, UNIFIED SCHOOL
DISTRICT,
ELECTION 2002, GO, AGM INSURED
5.250%, 08/01/18 1.7
ENERGY NORTHWEST, ELECTRIC REVENUE,
PROJECT NO. 1,
SER B, RB, NATIONAL-RE INSURED
6.000%, 07/01/17 1.7
CHICO, UNIFIED SCHOOL DISTRICT,
SER B, GO, AGM INSURED
5.000%, 08/01/25 1.7
CONNECTICUT STATE,
SER C, GO
5.000%, 06/01/14 1.7
FUND SECTORS
SECTOR % OF
PORTFOLIO
GENERAL OBLIGATIONS 49.1%
REVENUE BONDS 47.3
CERTIFICATE OF PARTICIPATION 1.9
TAX ALLOCATION 1.3
REGISTERED INVESTMENT COMPANY 0.4
* EXCLUDES SHORT-TERM SECURITIES.
NATIONAL INTERMEDIATE TAX-FREE BOND FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark National Intermediate
Tax-Free Bond Fund (the "Fund") produced a total return of 4.37% (Class A Shares
without load). In comparison, the Fund's benchmark, the unmanaged Barclays
7-Year Municipal Bond Index, returned 5.95% for the same period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by challenging global
conditions and a slow-growth economic recovery. Concerns over the continuing
sovereign debt crisis in Europe, and fears of its potential impact in other
geographical regions, contributed to extreme volatility in financial markets
both in the United States and abroad. Investors dealt with structural market
imbalances, and consumers continued to deleverage across the globe. Despite
these challenges, signs of improvement did occur. The domestic unemployment rate
declined in five of the months of the reporting period, and housing prices
stabilized.
The Federal Reserve left the federal funds rate, the rate banks charge to lend
to each other, unchanged from its beginning level in the 0%-0.25% range and
indicated it would remain at this level until 2014. New issuance volume
decreased significantly during the reporting period, due mainly to the lingering
effects of the end of the government's Build America Bonds program. Municipal
credit downgrades significantly outnumbered upgrades during the Fund's reporting
period. However, the actual number of defaults declined from the previous
period.
New York was the nation's largest state of issuance of municipal debt during the
Fund's reporting period. California came in as the second largest issuer, and
Texas was the third largest issuer during the reporting period.
The reporting period was characterized by low yields, concerns about counties'
and municipalities' ability to pay their debts, and volatile markets that
alternated between the risk-on and risk-off trading. The Fund managed to protect
assets in down markets by limiting potential price risk. As risk-taking returned
to the municipal market and default rates fell, lower quality, longer duration
assets outperformed. The high-quality nature of the Fund's investments and their
shorter duration relative to the Fund's benchmark negatively impacted
performance.
As a result, the Fund underperformed its benchmark for the reporting period.
36 HIGHMARK(R) FUNDS
HIGHMARK NATIONAL INTERMEDIATE TAX-FREE BOND FUND
INVESTMENT OBJECTIVE
HIGHMARK NATIONAL INTERMEDIATE TAX-FREE BOND FUND SEEKS TO PROVIDE HIGH CURRENT
INCOME THAT IS EXEMPT FROM FEDERAL INCOME TAX.
[PHOTO OMITTED]
LEAD PORTFOLIO MANAGER
ROBERT BIGELOW
HIGHMARK CAPITAL MANAGEMENT, INC.
[PHOTO OMITTED]
PORTFOLIO MANAGER
RAYMOND MOW
HIGHMARK CAPITAL MANAGEMENT, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK NATIONAL
INTERMEDIATE TAX-FREE BOND FUND VERSUS THE BARCLAYS CAPITAL 7-YEAR MUNICIPAL
BOND INDEX AND THE MORNINGSTAR MUNICIPAL NATIONAL INTERMEDIATE CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
Morningstar
HighMark National Municipal
Intermediate Tax- Barclays Capital National
Free Bond Fund 7-Year Municipal Intermediate
Class A Shares+ Bond Index++ Category
Jul-01 $ 9,775 $10,000 $10,000
Jul-02 $10,270 $10,714 $10,519
Jul-03 $10,523 $11,129 $10,750
Jul-04 $10,832 $11,703 $11,223
Jul-05 $11,067 $12,166 $11,648
Jul-06 $11,254 $12,428 $11,852
Jul-07 $11,633 $12,918 $12,237
Jul-08 $12,204 $13,671 $12,567
Jul-09 $12,888 $14,766 $13,096
Jul-10 $13,574 $15,886 $14,133
Jul-11 $13,857 $16,595 $14,542
Jan-12 $14,462 $17,582 $15,430
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
----------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR 10 YEAR EXPENSE EXPENSE
RETURN RETURN RETURN RETURN RETURN RATIO++ RATIO++
----------------------------------------------------------------------------------------------------------------------------------
Fiduciary Shares 4.41% 8.64% 4.50% 4.96% 4.03%+ 1.08% 0.52%
----------------------------------------------------------------------------------------------------------------------------------
Class A Shares 4.37% 8.38% 4.24% 4.73% 3.77%+ 1.33% 0.77%
----------------------------------------------------------------------------------------------------------------------------------
Class A Shares w/load* 2.04% 5.90% 3.45% 4.25% 3.53%+ 1.33% 0.77%
----------------------------------------------------------------------------------------------------------------------------------
Class C Shares 4.13% 7.88% 3.88%^ 3.78%^ 3.37%+^ 1.58% 1.22%
----------------------------------------------------------------------------------------------------------------------------------
Class C Shares w/load** 3.13% 6.88% 3.88%^ 3.78%^ 3.37%+^ 1.58% 1.22%
----------------------------------------------------------------------------------------------------------------------------------
Barclays Capital 7-Year Municipal
Bond Index 5.95% 11.78% 6.46% 6.69% 5.55% -- --
----------------------------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
PERFORMANCE PRESENTED STARTING TEN YEARS AGO TO OCTOBER 18, 2002 (COMMENCEMENT
OF INVESTMENT OPERATIONS OF FIDUCIARY AND CLASS A SHARES) REFLECTS THE
PERFORMANCE OF UBOC INTERMEDIATE MUNICIPAL BOND FUND, A COMMON TRUST FUND.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
BONDS AND BOND FUNDS WILL TYPICALLY DECREASE IN VALUE AS INTEREST RATES RISE.
+ The performance presented links the performance of UBOC Intermediate
Municipal Bond Fund, a common trust fund (the "Common Trust Fund"), for
the period prior to its consolidation with HighMark National Intermediate
Tax-Free Bond Fund on October 18, 2002, as adjusted to reflect the fees
and expenses associated with HighMark National Intermediate Tax-Free Bond
Fund. The Common Trust Fund was not registered under the Investment
Company Act of 1940, as amended, and therefore was not subject to the
investment restrictions, limitations, and diversification requirements
imposed by such Act and the Internal Revenue Code of 1986, as amended. If
the Common Trust Fund had been registered, its performance may have been
lower.
^ For the period starting ten years ago through November 27, 2003 for Class
C Shares, performance data is based on Fiduciary Share performance (whose
performance data includes the performance of the Common Trust Fund for the
period prior to its consolidation with the National Intermediate Tax-Free
Bond Fund on October 18, 2002, as discussed above). The performance of the
Fiduciary Shares during this period does not reflect Class C Shares'
expenses. With those adjustments, performance would be lower than that
shown. From November 28, 2003 through September 26, 2007 for Class C
Shares, performance data reflects the performance of Class C Shares during
that period. From September 27, 2007 through December 3, 2009, no Class C
Shares were outstanding, and performance data for Class C Shares during
such period is based on Fiduciary Share performance and does reflect Class
C Shares' expenses. With those adjustments, performance would be lower
than that shown. Class C Shares reopened on December 1, 2009.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 2.25% front-end sales charge.
** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 37
TOP TEN HOLDINGS
HOLDING* % OF
PORTFOLIO
SEARIVER MARITIME
ZERO COUPON, 09/01/12 2.2%
CELLCO PARTNERSHIP/VERIZON
WIRELESS CAPITAL
5.550%, 02/01/14 1.6
WACHOVIA
4.875%, 02/15/14 1.5
SLM STUDENT LOAN TRUST,
SER 2011-A, CL A1
1.285%, 10/15/24 1.5
HEWLETT-PACKARD
3.000%, 09/15/16 1.5
TEVA PHARMACEUTICAL FINANCE IV
1.700%, 11/10/14 1.5
AMGEN
1.875%, 11/15/14 1.5
FNMA, ARM
2.309%, 09/01/35 1.5
CALIFORNIA STATE, GO
5.650%, 04/01/39 1.4
GENERAL ELECTRIC CAPITAL CORP
1.311%, 05/09/16 1.4
FUND SECTORS
SECTOR % OF
PORTFOLIO
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS 16.0%
FINANCIALS 14.1
ASSET-BACKED SECURITIES 13.1
ENERGY 10.3
CONSUMER DISCRETIONARY 7.5
HEALTH CARE 6.5
INDUSTRIAL 5.9
MORTGAGE-BACKED SECURITIES 5.4
TELECOMMUNICATION SERVICES 5.3
MATERIALS 4.0
UTILITIES 3.1
TAXABLE MUNICIPAL BONDS 2.5
REGISTERED INVESTMENT COMPANIES 2.2
INFORMATION TECHNOLOGY 2.2
CONSUMER STAPLES 1.0
FOREIGN GOVERNMENTS 0.5
U.S. TREASURY OBLIGATION 0.4
* EXCLUDES SHORT-TERM SECURITIES.
SHORT TERM BOND FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Short Term Bond Fund
(the "Fund") produced a total return of 0.83% (Class A Shares without load). In
comparison, the Fund's benchmark, the unmanaged Barclays Capital 1-3 Year U.S.
Government/Credit Index, returned 0.59% for the same period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by challenging global
conditions and a slow-growth economic recovery. Concerns over the continuing
sovereign debt crisis in Europe, and fears of its potential impact in other
geographical regions, contributed to extreme volatility in financial markets
both in the United States and abroad. Investors dealt with structural market
imbalances, and consumers continued to deleverage across the globe. Despite
these challenges, signs of improvement did occur. The domestic unemployment rate
declined in five of the months of the reporting period, and housing prices
stabilized.
Early in the reporting period, bond yields in Italy and Spain reached new
post-euro highs above 7%, and the yield premium relative to Germany also reached
record levels. The European Central Bank began buying the sovereign debt of its
member countries, particularly Italy and Spain, in an attempt to decrease yields
and support financial markets. Corporate spreads widened, and a stock sell-off
ensued as a result. In December, the European Central Bank announced three-year
term funding for European banks to stabilize, which once again led to a
narrowing of spreads and a stock market rally.
This volatility resulted in a flight to quality and significant outperformance
of both the 10-year and 30-year Treasury bonds. The Short Term (1-3 year)
corporate index outperformed by four basis points, while the Bond Fund corporate
benchmark underperformed by 264 basis points, a dramatic difference between the
two and a major reason for the outperformance of the Fund. The Fund is
overweight in corporate bonds as well as overweight in asset-backed securities.
The slight outperformance of corporate issues, and the incremental income they
provide, enabled the Fund to outperform its benchmark for the reporting period.
38 HIGHMARK(R) FUNDS
HIGHMARK SHORT TERM BOND FUND
INVESTMENT OBJECTIVE
HIGHMARK SHORT TERM BOND FUND SEEKS TOTAL RETURN THROUGH INVESTMENTS IN
FIXED-INCOME SECURITIES.
[PHOTO OMITTED]
LEAD PORTFOLIO MANAGER
JACK MONTGOMERY
HIGHMARK CAPITAL
MANAGEMENT, INC.
[PHOTO OMITTED]
PORTFOLIO MANAGER
GREGORY LUGOSI
HIGHMARK CAPITAL
MANAGEMENT, INC.
[PHOTO OMITTED]
PORTFOLIO MANAGER
JEFFREY KLEIN
HIGHMARK CAPITAL
MANAGEMENT, INC.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK SHORT TERM
BOND FUND VERSUS THE BARCLAYS CAPITAL 1-3 YEAR U.S. GOVERNMENT/CREDIT BOND INDEX
AND THE MORNINGSTAR SHORT BOND CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
HighMark
Short Term Barclays Capital
Bond Fund 1-3 Year U.S. Morningstar
Class A Government/Credit Short Bond
Shares Bond Index++ Category
11-02-04 $ 9,775 $10,000 $10,000
Jul-05 $ 9,792 $10,086 $10,063
Jul-06 $10,033 $10,388 $10,306
Jul-07 $10,478 $10,943 $10,782
Jul-08 $10,995 $11,624 $10,916
Jul-09 $11,531 $12,217 $11,262
Jul-10 $11,976 $12,670 $11,969
Jul-11 $12,224 $12,896 $12,287
Jan-12 $12,326 $12,972 $12,361
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
---------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR SINCE EXPENSE EXPENSE
RETURN RETURN RETURN RETURN INCEPTION RATIO++ RATIO++
---------------------------------------------------------------------------------------------------------------------------------
Fiduciary Shares 0.97% 2.32% 3.71% 4.02% 3.53% 0.99% 0.61%
----------------------------------------------------------------------------------------------------------------------------------
Class A Shares 0.83% 2.04% 3.44% 3.72% 3.25% 1.24% 0.86%
----------------------------------------------------------------------------------------------------------------------------------
Class A Shares w/load* -1.42% -0.24% 2.64% 3.24% 2.93% 1.24% 0.86%
----------------------------------------------------------------------------------------------------------------------------------
Class C Shares 0.59% 1.65% 2.98% 3.26% 2.94%+ 1.49% 1.31%
----------------------------------------------------------------------------------------------------------------------------------
Class C Shares w/load** -0.41% 0.65% 2.98% 3.26% 2.94%+ 1.49% 1.31%
----------------------------------------------------------------------------------------------------------------------------------
Barclays Capital 1-3 Year
U.S. Government/Credit
Bond Index 0.59% 1.74% 2.76% 4.02% 3.60% -- --
----------------------------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
BONDS AND BOND FUNDS WILL TYPICALLY DECREASE IN VALUE AS INTEREST RATES RISE.
+ The performance presented links the performance of Fiduciary Shares from
November 2, 2004 with the performance of Class C Shares on November 29,
2004. Fiduciary Share performance does not reflect the higher expenses
applicable to this Class. With these adjustments, performance would be
lower than that shown.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 2.25% front-end sales charge. Prior to December 1, 2005, the
front-end sales charge was 3.25%.
** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 39
TOP TEN HOLDINGS
COMPANY* % OF
PORTFOLIO
SOUTHEAST WISCONSIN
PROFESSIONAL BASEBALL
PARK DISTRICT,
SALES TAX REVENUE, REFUNDING,
SER A, RB, NATIONAL-RE INSURED
5.500%, 12/15/26 3.6%
MADISON, COMMUNITY DEVELOPMENT
AUTHORITY REVENUE,
WISCONSIN ALUMNI RESEARCH
FUND PROJECT, RB
5.000%, 10/01/34 3.3
PUERTO RICO SALES TAX FINANCING,
CORPORATE SALES TAX REVENUE,
FIRST SUB-SER A, RB
6.375%, 08/01/39 2.3
MONROE, REDEVELOPMENT AUTHORITY,
DEVELOPMENT REVENUE,
MONROE CLINIC INC., RB
5.875%, 2/15/39 2.0
WISCONSIN CENTER DISTRICT,
SER 1998A, JUNIOR DEDICATED
TAX REVENUE, RB
AGM INSURED
5.250%, 12/15/23 2.0
PUERTO RICO SALES TAX FINANCING,
CORPORATE SALES TAX REVENUE,
FIRST SUB-SER A, RB
5.500%, 08/01/37 1.8
VIRGIN ISLANDS PUBLIC
FINANCE AUTHORITY,
GROSS RECEIPTS TAXES
LOAN NOTES, RB
NATIONAL-RE FGIC INSURED
5.000%, 10/01/24 1.7
PUERTO RICO ELECTRIC POWER
AUTHORITY,
SER WW, RB
5.500%, 07/01/38 1.7
SOUTHEAST WISCONSIN
PROFESSIONAL BASEBALL
PARK DISTRICT,
SALES TAX REVENUE, REFUNDING,
SER A, RB, NATIONAL-RE INSURED
5.500%, 12/15/19 1.7
GLENDALE, COMMUNITY
DEVELOPMENT AUTHORITY,
LEASE REVENUE, TAX INCREMENT
DISTRICT NO. 7, RB, SER B
3.850%, 09/01/20 1.6
FUND SECTORS
SECTOR % OF
PORTFOLIO
REVENUE BONDS 89.1%
GENERAL OBLIGATIONS 5.8
CERTIFICATE OF PARTICIPATION 1.2
REGISTERED INVESTMENT COMPANY 3.9
* EXCLUDES SHORT-TERM SECURITIES.
WISCONSIN TAX-EXEMPT FUND (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark Wisconsin Tax-Exempt
Fund (the "Fund") produced a total return of 6.37% (Class A Shares without
load). In comparison, the Fund's benchmark, the unmanaged Barclays Capital
Municipal Bond Index, returned 7.37% for the same period.
FACTORS AFFECTING PERFORMANCE
The Fund's reporting period was generally marked by challenging global
conditions and a slow-growth economic recovery. Concerns over the continuing
sovereign debt crisis in Europe, and fears of its potential impact in other
geographical regions, contributed to extreme volatility in financial markets
both in the United States and abroad. Investors dealt with structural market
imbalances, and consumers continued to deleverage across the globe. Despite
these challenges, signs of improvement did occur. The domestic unemployment rate
declined in five of the months of the reporting period, and housing prices
stabilized.
The Federal Reserve left the federal funds rate, the rate banks charge to lend
to each other, unchanged from its beginning level in the 0%-0.25% range and
indicated it would remain at this level until 2014. The positive effects of
"Operation Twist," a program undertaken by the Federal Reserve to sell shorter
duration issues and purchase longer duration issues, were felt during the Fund's
reporting period, driving yields to record low levels across the yield curve.
This created a "risk-on" environment that resulted in a rally in the municipal
sector. Specifically, longer duration issues performed exceedingly well during
the period. The Fund continued to execute on its strategy of improving the
quality of its portfolio investments, which meant investing in issues that were
more liquid, as well as in territory issues with stronger ratings.
Wisconsin Alumni Bonds, Milwaukee Summerfest Bonds and Monroe Clinic Bonds
contributed to performance during the Fund's reporting period.
Detraction from the Fund's performance came mainly from the Fund's shorter
duration relative to its benchmark in this "risk-on" environment. Refinancing
action, in which issues were called away due to the fact that they were trading
above par, also somewhat detracted from performance as the Fund could no longer
benefit from the strong performance of those issues.
Because of these drags on performance, the Fund underperformed its benchmark for
the reporting period.
40 HIGHMARK(R) FUNDS
HIGHMARK WISCONSIN TAX-EXEMPT FUND INVESTMENT OBJECTIVE
HIGHMARK WISCONSIN TAX-EXEMPT FUND SEEKS TO PROVIDE INVESTORS WITH A HIGH LEVEL
OF CURRENT INCOME THAT IS EXEMPT FROM FEDERAL INCOME TAX AND WISCONSIN PERSONAL
INCOME TAX.
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
ERIC ZENNER
ZIEGLER LOTSOFF CAPITAL MANAGEMENT, LLC
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
RICHARD SCARGILL
ZIEGLER LOTSOFF CAPITAL MANAGEMENT, LLC
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
PAULA HORN
ZIEGLER LOTSOFF CAPITAL MANAGEMENT, LLC
[PHOTO OMITTED]
CO-PORTFOLIO MANAGER
MICHAEL SANDERS
ZIEGLER LOTSOFF CAPITAL
MANAGEMENT, LLC
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN HIGHMARK WISCONSIN
TAX-EXEMPT FUND VERSUS THE BARCLAYS CAPITAL MUNICIPAL BOND INDEX AND THE
MORNINGSTAR MUNICIPAL SINGLE STATE INTERMEDIATE CATEGORY.
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
Morningstar
HighMark Wisconsin Barclays Municipal Single
Tax-Exempt Fund Capital Municipal State Intermediate
Class A Shares Bond Index++ Category
Jul-01 $ 9,775 $10,000 $10,000
Jul-02 $10,349 $10,671 $10,568
Jul-03 $10,790 $11,055 $10,835
Jul-04 $11,267 $11,695 $11,313
Jul-05 $11,798 $12,438 $11,774
Jul-06 $12,035 $12,755 $11,979
Jul-07 $12,459 $13,300 $12,389
Jul-08 $12,711 $13,676 $12,550
Jul-09 $13,079 $14,375 $13,088
Jul-10 $14,119 $15,690 $14,018
Jul-11 $14,441 $16,199 $14,378
Jan-12 $15,361 $17,392 $15,270
++ Indexes are unmanaged and do not incur fees, expenses or other costs.
-------------------------------------------------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED ANNUALIZED GROSS NET
SIX MONTH ONE YEAR 3 YEAR 5 YEAR 10 YEAR EXPENSE EXPENSE
RETURN RETURN RETURN RETURN RETURN RATIO++ RATIO++
-------------------------------------------------------------------------------------------------------------------------
Fiduciary Shares 6.50% 12.27%+ 6.54%+ 4.57%+ 4.46%+ 1.07% 0.66%
-------------------------------------------------------------------------------------------------------------------------
Class A Shares 6.37% 11.99% 6.40% 4.49% 4.42% 1.32% 0.91%
-------------------------------------------------------------------------------------------------------------------------
Class A Shares w/load* 3.96% 9.48% 5.60% 4.01% 4.19% 1.32% 0.91%
-------------------------------------------------------------------------------------------------------------------------
Class B Shares 5.99% 11.20% 5.66% 3.74% 3.73%+ 1.82% 1.61%
-------------------------------------------------------------------------------------------------------------------------
Class B Shares w/load** 0.99% 6.20% 4.75% 3.39% 3.73%+ 1.82% 1.61%
-------------------------------------------------------------------------------------------------------------------------
Class C Shares 6.04% 11.40% 5.87% 3.87% 3.80%+ 1.57% 1.36%
-------------------------------------------------------------------------------------------------------------------------
Class C Shares w/load*** 5.04% 10.40% 5.87% 3.87% 3.80%+ 1.57% 1.36%
-------------------------------------------------------------------------------------------------------------------------
Barclays Capital Municipal Bond Index 7.37% 14.10% 8.10% 5.76% 5.44% -- --
-------------------------------------------------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. RETURNS SHOWN IN THE GRAPH
AND THE TABLE DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE RETURNS FOR CERTAIN
PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT PERIOD;
ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN LOWER.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, SO SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE RETURNS QUOTED. FOR MONTH-END PERFORMANCE DATA PLEASE
CALL 1-800-433-6884 OR VISIT OUR WEBSITE AT WWW.HIGHMARKFUNDS.COM.
BONDS AND BOND FUNDS WILL TYPICALLY DECREASE IN VALUE AS INTEREST RATES RISE.
+ The performance presented links the performance of Class A Shares from ten
years ago with the performance of Class B and Class C Shares on January 6,
2003 and Fiduciary Shares on August 3, 2010. Class B and Class C Share
performance does not reflect the higher expenses applicable to these
Classes. With these adjustments, performance would be lower than that
shown. Class A Share performance has not been adjusted to reflect expenses
applicable to Fiduciary Shares. With these adjustments, performance would
be higher than that shown.
++ Per prospectus. The expense ratios presented above may vary from the
expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report. The Fund's
Adviser has contractually agreed to waive fees and reimburse expenses in
order to keep total operating expenses for all share classes from
exceeding the net expense ratios listed in the prospectus, for the period
beginning December 1, 2011 and ending on November 30, 2012. The Adviser
may recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
* Reflects 2.25% front-end sales charge.
** Reflects maximum CDSC of 5.00%.
*** Reflects maximum CDSC of 1.00%.
HIGHMARK(R) FUNDS 41
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
We believe it is important for you to understand the impact of fees regarding
your investment. All mutual funds have operating expenses. As a shareholder of a
mutual fund, you incur two types of costs: (1) transaction costs, which include,
as applicable, redemption fees; and (2) ongoing costs, which include costs for
portfolio management, administrative services, distribution fees and shareholder
reports (like this one), among others. Operating expenses, which are deducted
from a mutual fund's gross income, directly reduce the investment return of the
mutual fund. A mutual fund's expenses are expressed as a percentage of its
average net assets. This figure is known as the expense ratio. The following
examples are intended to help you understand the ongoing fees (in dollars) of
investing in each Fund and to compare these costs with those of other mutual
funds. The examples are based on an investment of $1,000 made at the beginning
of the period shown and held for the entire period.
The table below illustrates each Fund's costs in two ways.
o ACTUAL FUND RETURN. This section helps you to estimate the actual expenses
after fee waivers that you paid over the period. The "Ending Account
Value" shown is derived from the Fund's actual return, and the fourth
column shows the dollar amount that would have been paid by an investor
who started with $1,000 in the Fund. You may use the information here,
together with the amount you invested, to estimate the expenses that you
paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for your Fund under the heading "Expenses Paid During Period."
o HYPOTHETICAL 5% RETURN. This section is intended to help you compare each
Fund's costs with those of other mutual funds. It assumes that the Fund
had a return of 5% before expenses during the year, but that the expense
ratio is unchanged. In this case, because the return used is not the
Fund's actual return, the results do not apply to your investment. The
example is useful in making comparisons because the Securities and
Exchange Commission ("SEC") requires all mutual funds to calculate
expenses based on a 5% return. You can assess each Fund's costs by
comparing this hypothetical example with the hypothetical examples that
appear in shareholder reports of other mutual funds.
Please note that the expenses shown in the table are meant to highlight and help
you compare ongoing costs only and do not reflect any transactional costs such
as sales charges (loads), and redemption fees, which are described in each
Fund's prospectus. If these fees were applied to your account, your costs would
be higher.
BEGINNING ENDING NET EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE AT VALUE AT EXPENSE DURING
8/1/11 1/31/12 RATIOS PERIOD*
BALANCED FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $1,027.40 0.99% $5.05
Class A Shares ............... 1,000.00 1,025.90 1.24% 6.31
Class B Shares ............... 1,000.00 1,022.50 1.84% 9.35
Class C Shares ............... 1,000.00 1,023.10 1.84% 9.36
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,020.16 0.99% $5.03
Class A Shares ............... 1,000.00 1,018.90 1.24% 6.29
Class B Shares ............... 1,000.00 1,015.89 1.84% 9.32
Class C Shares ............... 1,000.00 1,015.89 1.84% 9.32
--------------------------------------------------------------------------------
COGNITIVE VALUE FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $1,020.90 1.19% $6.05
Class A Shares ............... 1,000.00 1,018.70 1.47% 7.46
Class C Shares ............... 1,000.00 1,016.10 2.07% 10.49
Class M Shares ............... 1,000.00 1,021.10 1.07% 5.44
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,019.15 1.19% $6.04
Class A Shares ............... 1,000.00 1,017.75 1.47% 7.46
Class C Shares ............... 1,000.00 1,014.73 2.07% 10.48
Class M Shares ............... 1,000.00 1,019.76 1.07% 5.43
BEGINNING ENDING NET EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE AT VALUE AT EXPENSE DURING
8/1/11 1/31/12 RATIOS PERIOD*
ENHANCED GROWTH FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $1,032.20 1.11% $5.67
Class A Shares ............... 1,000.00 1,030.10 1.45% 7.40
Class C Shares ............... 1,000.00 1,027.20 2.05% 10.45
Class M Shares ............... 1,000.00 1,032.10 1.05% 5.36
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,019.56 1.11% $5.63
Class A Shares ............... 1,000.00 1,017.85 1.45% 7.35
Class C Shares ............... 1,000.00 1,014.83 2.05% 10.38
Class M Shares ............... 1,000.00 1,019.86 1.05% 5.33
--------------------------------------------------------------------------------
EQUITY INCOME FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $1,049.50 0.89% $4.57
Class A Shares ............... 1,000.00 1,048.30 1.15% 5.92
Class B Shares ............... 1,000.00 1,044.80 1.75% 8.99
Class C Shares ............... 1,000.00 1,044.20 1.75% 8.99
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,020.67 0.89% $4.51
Class A Shares ............... 1,000.00 1,019.36 1.15% 5.84
Class B Shares ............... 1,000.00 1,016.34 1.75% 8.87
Class C Shares ............... 1,000.00 1,016.34 1.75% 8.87
42 HIGHMARK(R) FUNDS
BEGINNING ENDING NET EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE AT VALUE AT EXPENSE DURING
8/1/11 1/31/12 RATIOS PERIOD*
--------------------------------------------------------------------------------
GENEVA MID CAP GROWTH FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $1,049.20 1.13% $5.82
Class A Shares ............... 1,000.00 1,047.70 1.38% 7.10
Class B Shares ............... 1,000.00 1,044.10 1.98% 10.17
Class C Shares ............... 1,000.00 1,044.10 1.98% 10.17
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,019.46 1.13% $5.74
Class A Shares ............... 1,000.00 1,018.20 1.38% 7.00
Class B Shares ............... 1,000.00 1,015.18 1.98% 10.03
Class C Shares ............... 1,000.00 1,015.18 1.98% 10.03
--------------------------------------------------------------------------------
GENEVA SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $1,025.70 1.35% $6.87
Class A Shares ............... 1,000.00 1,024.20 1.62% 8.24
Class C Shares ............... 1,000.00 1,021.20 2.22% 11.28
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,018.35 1.35% $6.85
Class A Shares ............... 1,000.00 1,016.99 1.62% 8.21
Class C Shares ............... 1,000.00 1,013.98 2.22% 11.24
--------------------------------------------------------------------------------
INTERNATIONAL OPPORTUNITIES FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $867.90 1.38% $6.48
Class A Shares ............... 1,000.00 865.70 1.55% 7.27
Class C Shares ............... 1,000.00 863.40 2.25% 10.54
Class M Shares ............... 1,000.00 868.60 1.25% 5.87
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,018.20 1.38% $7.00
Class A Shares ............... 1,000.00 1,017.34 1.55% 7.86
Class C Shares ............... 1,000.00 1,013.83 2.25% 11.39
Class M Shares ............... 1,000.00 1,018.85 1.25% 6.34
--------------------------------------------------------------------------------
LARGE CAP CORE EQUITY FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $1,029.20 0.94% $4.79
Class A Shares ............... 1,000.00 1,027.90 1.23% 6.27
Class B Shares ............... 1,000.00 1,023.50 1.83% 9.31
Class C Shares ............... 1,000.00 1,023.90 1.83% 9.31
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,020.41 0.94% $4.77
Class A Shares ............... 1,000.00 1,018.95 1.23% 6.24
Class B Shares ............... 1,000.00 1,015.94 1.83% 9.27
Class C Shares ............... 1,000.00 1,015.94 1.83% 9.27
--------------------------------------------------------------------------------
LARGE CAP GROWTH FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $1,015.30 1.01% $5.12
Class A Shares ............... 1,000.00 1,013.80 1.27% 6.43
Class B Shares ............... 1,000.00 1,010.60 1.87% 9.45
Class C Shares ............... 1,000.00 1,010.70 1.87% 9.45
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,020.06 1.01% $5.13
Class A Shares ............... 1,000.00 1,018.75 1.27% 6.44
Class B Shares ............... 1,000.00 1,015.74 1.87% 9.48
Class C Shares ............... 1,000.00 1,015.74 1.87% 9.48
BEGINNING ENDING NET EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE AT VALUE AT EXPENSE DURING
8/1/11 1/31/12 RATIOS PERIOD*
--------------------------------------------------------------------------------
LARGE CAP VALUE FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $977.40 0.96% $4.77
Class A Shares ............... 1,000.00 975.70 1.25% 6.21
Class B Shares ............... 1,000.00 972.80 1.85% 9.17
Class C Shares ............... 1,000.00 973.00 1.85% 9.17
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,020.31 0.96% $4.88
Class A Shares ............... 1,000.00 1,018.85 1.25% 6.34
Class B Shares ............... 1,000.00 1,015.84 1.85% 9.37
Class C Shares ............... 1,000.00 1,015.84 1.85% 9.37
--------------------------------------------------------------------------------
NYSE ARCA TECH 100 INDEX FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $1,035.60 0.81% $4.14
Class A Shares ............... 1,000.00 1,034.30 1.08% 5.52
Class B Shares ............... 1,000.00 1,031.00 1.68% 8.58
Class C Shares ............... 1,000.00 1,031.10 1.68% 8.58
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,021.06 0.81% $4.12
Class A Shares ............... 1,000.00 1,019.71 1.08% 5.48
Class B Shares ............... 1,000.00 1,016.69 1.68% 8.52
Class C Shares ............... 1,000.00 1,016.69 1.68% 8.52
--------------------------------------------------------------------------------
SMALL CAP CORE FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $975.60 1.32% $6.56
Class A Shares ............... 1,000.00 973.80 1.62% 8.04
Class C Shares ............... 1,000.00 971.00 2.22% 11.00
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,018.50 1.32% $6.70
Class A Shares ............... 1,000.00 1,016.99 1.62% 8.21
Class C Shares ............... 1,000.00 1,013.98 2.22% 11.24
--------------------------------------------------------------------------------
VALUE MOMENTUM **
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $998.90 1.02% $5.13
Class A Shares ............... 1,000.00 998.20 1.27% 6.38
Class B Shares ............... 1,000.00 995.40 1.87% 9.38
Class C Shares ............... 1,000.00 995.00 1.87% 9.38
Class U Shares** ............. 1,000.00 1,029.00 0.87% 0.68
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,020.01 1.02% $5.18
Class A Shares ............... 1,000.00 1,018.75 1.27% 6.44
Class B Shares ............... 1,000.00 1,015.74 1.87% 9.48
Class C Shares ............... 1,000.00 1,015.74 1.87% 9.48
Class U Shares ............... 1,000.00 1,003.16 0.87% 0.67
--------------------------------------------------------------------------------
TACTICAL CAPITAL GROWTH ALLOCATION FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $990.10 0.32% $1.60
Class A Shares ............... 1,000.00 988.50 0.58% 2.90
Class C Shares ............... 1,000.00 985.30 1.28% 6.39
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,023.53 0.32% $1.63
Class A Shares ............... 1,000.00 1,022.22 0.58% 2.95
Class C Shares ............... 1,000.00 1,018.70 1.28% 6.50
HIGHMARK(R) FUNDS 43
DISCLOSURE OF FUND EXPENSES (UNAUDITED) (CONCLUDED)
BEGINNING ENDING NET EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE AT VALUE AT EXPENSE DURING
8/1/11 1/31/12 RATIOS PERIOD*
--------------------------------------------------------------------------------
TACTICAL GROWTH & INCOME ALLOCATION FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $999.40 0.32% $1.61
Class A Shares ............... 1,000.00 998.10 0.57% 2.86
Class C Shares ............... 1,000.00 994.70 1.27% 6.37
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,023.53 0.32% $1.63
Class A Shares ............... 1,000.00 1,022.22 0.58% 2.95
Class C Shares ............... 1,000.00 1,018.75 1.27% 6.44
--------------------------------------------------------------------------------
BOND FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $1,035.50 0.76% $3.89
Class A Shares ............... 1,000.00 1,034.90 1.02% 5.22
Class B Shares ............... 1,000.00 1,030.30 1.70% 8.68
Class C Shares ............... 1,000.00 1,031.90 1.45% 7.41
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,021.32 0.76% $3.86
Class A Shares ............... 1,000.00 1,020.01 1.02% 5.18
Class B Shares ............... 1,000.00 1,016.59 1.70% 8.62
Class C Shares ............... 1,000.00 1,017.85 1.45% 7.35
--------------------------------------------------------------------------------
CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $1,050.20 0.54% $2.78
Class A Shares ............... 1,000.00 1,049.20 0.79% 4.07
Class B Shares ............... 1,000.00 1,046.80 1.48% 7.61
Class C Shares ............... 1,000.00 1,047.10 1.24% 6.38
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,022.42 0.54% $2.75
Class A Shares ............... 1,000.00 1,021.17 0.79% 4.01
Class B Shares ............... 1,000.00 1,017.70 1.48% 7.51
Class C Shares ............... 1,000.00 1,018.90 1.24% 6.29
--------------------------------------------------------------------------------
NATIONAL INTERMEDIATE TAX-FREE BOND FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $1,044.10 0.52% $2.67
Class A Shares ............... 1,000.00 1,043.70 0.77% 3.96
Class C Shares ............... 1,000.00 1,041.30 1.22% 6.26
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,022.52 0.52% $2.64
Class A Shares ............... 1,000.00 1,021.27 0.77% 3.91
Class C Shares ............... 1,000.00 1,019.00 1.22% 6.19
--------------------------------------------------------------------------------
SHORT TERM BOND FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $1,009.70 0.64% $3.23
Class A Shares ............... 1,000.00 1,008.30 0.92% 4.64
Class C Shares ............... 1,000.00 1,005.90 1.37% 6.91
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,021.92 0.64% $3.25
Class A Shares ............... 1,000.00 1,020.51 0.92% 4.67
Class C Shares ............... 1,000.00 1,018.25 1.37% 6.95
BEGINNING ENDING NET EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE AT VALUE AT EXPENSE DURING
8/1/11 1/31/12 RATIOS PERIOD*
--------------------------------------------------------------------------------
WISCONSIN TAX-EXEMPT FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares ............. $1,000.00 $1,065.00 0.65% $3.37
Class A Shares ............... 1,000.00 1,063.70 0.90% 4.67
Class B Shares ............... 1,000.00 1,059.90 1.60% 8.28
Class C Shares ............... 1,000.00 1,060.40 1.35% 6.99
HYPOTHETICAL
Fiduciary Shares ............. $1,000.00 $1,021.87 0.65% $3.30
Class A Shares ............... 1,000.00 1,020.61 0.90% 4.57
Class B Shares ............... 1,000.00 1,017.09 1.60% 8.11
Class C Shares ............... 1,000.00 1,018.35 1.35% 6.85
----------
* Expenses are equal to the fund's annualized expense ratio multiplied by
the average account value over the period, multiplied by 184/366 (to
reflect the one half year period).
** Value Momentum Class U commenced operations on January 4, 2012.
44 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
BALANCED FUND
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - 65.4%+
-------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 6.6%
Dick's Sporting Goods 5,720 $ 235,721
Dollar Tree * 2,485 210,753
Hasbro 4,405 153,779
PetSmart 4,740 252,263
Sally Beauty Holdings * 10,530 217,129
TJX Companies 3,240 220,774
Yum! Brands 4,080 258,386
-----------
1,548,805
-----------
CONSUMER STAPLES - 9.5%
Altria Group 10,925 310,270
Anheuser-Busch InBev NV, SP ADR 4,345 264,176
Coca-Cola 6,715 453,464
Costco Wholesale 2,305 189,632
Kraft Foods, Cl A 9,170 351,211
Mead Johnson Nutrition 2,050 151,885
Philip Morris International 4,015 300,202
Procter & Gamble 3,450 217,488
-----------
2,238,328
-----------
ENERGY - 8.2%
BG Group PLC, SP ADR 2,105 236,981
Chevron 2,745 282,955
ExxonMobil 8,565 717,233
Occidental Petroleum 4,620 460,937
Royal Dutch Shell PLC, ADR 3,365 240,126
-----------
1,938,232
-----------
FINANCIALS - 5.4%
Arch Capital Group * ++ 5,225 188,361
US Bancorp 16,750 472,685
Wells Fargo 21,350 623,634
-----------
1,284,680
-----------
HEALTH CARE - 7.4%
Covidien ++ 3,320 170,980
Fresenius Medical Care, ADR 2,275 162,663
Gilead Sciences * 6,175 301,587
Johnson & Johnson 4,400 290,004
Merck 4,795 183,457
Pfizer 11,087 237,262
UnitedHealth Group 4,340 224,769
WellPoint 2,575 165,624
-----------
1,736,346
-----------
INDUSTRIAL - 8.1%
Danaher 12,730 668,452
Donaldson 3,700 267,510
JB Hunt Transport Services 5,410 276,289
Stericycle * 3,035 255,001
United Parcel Service, Cl B 2,265 171,347
WW Grainger 1,410 268,943
-----------
1,907,542
-----------
-------------------------------------------------------------------------------
Description Shares/Par Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
-------------------------------------------------------------------------------
INFORMATION TECHNOLOGY - 11.7%
Accenture, Cl A ++ 2,695 $ 154,531
Analog Devices 5,050 197,607
Apple * 1,715 782,863
Broadcom, Cl A * 6,255 214,797
EMC * 16,805 432,897
Oracle 17,820 502,524
Qualcomm 5,450 320,569
Riverbed Technology * 6,175 147,830
-----------
2,753,618
-----------
MATERIALS - 5.8%
Ecolab 8,635 521,899
Praxair 7,930 842,166
-----------
1,364,065
-----------
TELECOMMUNICATION SERVICES - 1.6%
American Tower, REIT 5,815 369,311
-----------
UTILITIES - 1.1%
ITC Holdings 1,945 143,366
Wisconsin Energy 3,405 115,770
-----------
259,136
-----------
TOTAL COMMON STOCK
(Cost $11,940,441) 15,400,063
-----------
-------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - 16.3%
-------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.8%
CCO Holdings / CCO Holdings Capital
7.375%, 06/01/20 $ 50,000 54,000
Comcast
5.700%, 07/01/19 50,000 59,077
Gap
5.950%, 04/12/21 90,000 86,340
Georgia-Pacific (A)
8.250%, 05/01/16 100,000 110,847
Iron Mountain
7.750%, 10/01/19 25,000 27,375
Macy's Retail Holdings
3.875%, 01/15/22 50,000 51,225
Staples
9.750%, 01/15/14 50,000 57,302
Starwood Hotels & Resorts Worldwide
6.250%, 02/15/13 75,000 77,719
Time Warner Entertainment
8.375%, 03/15/23 100,000 134,077
-----------
657,962
-----------
ENERGY - 2.2%
El Paso Pipeline Partners Operating
5.000%, 10/01/21 60,000 62,785
Energy Transfer Partners
9.700%, 03/15/19 100,000 126,446
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 45
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
BALANCED FUND (CONTINUED)
-------------------------------------------------------------------------------
Description Par Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - (CONTINUED)
-------------------------------------------------------------------------------
ENERGY - (CONTINUED)
Enterprise Products Operating
4.050%, 02/15/22 $ 50,000 $ 51,650
Magellan Midstream Partners
6.550%, 07/15/19 50,000 59,297
Petrobras International Finance
3.875%, 01/27/16 50,000 51,194
Petrohawk Energy
7.875%, 06/01/15 61,000 64,660
Transocean
5.050%, 12/15/16 50,000 53,574
Williams Partners
4.125%, 11/15/20 50,000 51,375
-----------
520,981
-----------
FINANCIALS - 5.2%
American International Group
4.250%, 09/15/14 100,000 100,466
Bank of America, MTN
5.650%, 05/01/18 100,000 102,305
BB&T Capital Trust II
6.750%, 06/07/36 30,000 31,207
Berkshire Hathaway Finance
5.400%, 05/15/18 50,000 59,660
Boston Properties
4.125%, 05/15/21 50,000 52,643
Capital One Financial
4.750%, 07/15/21 25,000 26,314
Citigroup
4.750%, 05/19/15 75,000 78,969
Ford Motor Credit
5.000%, 05/15/18 100,000 103,473
GE Global Insurance
7.750%, 06/15/30 200,000 248,656
General Electric Capital
3.350%, 10/17/16 100,000 105,520
JPMorgan Chase
4.250%, 10/15/20 100,000 101,787
Lehman Brothers Holdings, MTN (B)
5.625%, 01/24/13 125,000 34,062
NASDAQ OMX Group
5.250%, 01/16/18 50,000 53,575
Wells Fargo
5.625%, 12/11/17 100,000 115,033
-----------
1,213,670
-----------
FOREIGN GOVERNMENT - 0.3%
Export-Import Bank of Korea
4.000%, 01/11/17 75,000 76,478
-----------
-------------------------------------------------------------------------------
Description Par Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - (CONTINUED)
-------------------------------------------------------------------------------
HEALTH CARE - 1.2%
Amgen
3.875%, 11/15/21 $ 50,000 $ 52,070
Gilead Sciences
4.400%, 12/01/21 25,000 27,063
Laboratory Corp of America Holdings
4.625%, 11/15/20 50,000 53,423
Teva Pharmaceutical Finance
3.650%, 11/10/21 75,000 79,334
Wellpoint
6.000%, 02/15/14 58,000 63,062
-----------
274,952
-----------
INDUSTRIAL - 1.6%
American Airlines, Ser 11-1A
5.250%, 01/31/21 74,889 71,519
Continental Airlines Pass Through
Trust, Ser 2010-1, Cl A
4.750%, 01/12/21 98,074 101,752
Delta Air Lines, Ser 11-1A
5.300%, 04/15/19 100,000 105,000
L-3 Communications, Ser B
6.375%, 10/15/15 100,000 102,500
-----------
380,771
-----------
INFORMATION TECHNOLOGY - 0.3%
Hewlett-Packard
4.375%, 09/15/21 75,000 78,914
-----------
MATERIALS - 1.4%
Alcoa
5.400%, 04/15/21 50,000 52,495
ArcelorMittal
5.500%, 03/01/21 25,000 24,434
Dow Chemical
4.250%, 11/15/20 75,000 80,073
Ecolab
4.350%, 12/08/21 40,000 44,092
Rio Tinto Finance USA
6.500%, 07/15/18 50,000 62,996
Teck Resources
10.250%, 05/15/16 50,000 57,450
-----------
321,540
-----------
TELECOMMUNICATION SERVICES - 1.1%
Telefonica Emisiones SAU
3.992%, 02/16/16 100,000 99,928
Verizon Maryland
8.000%, 10/15/29 75,000 92,052
Verizon New England
7.875%, 11/15/29 50,000 60,716
-----------
252,696
-----------
The accompanying notes are an integral part of the financial statements.
46 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
BALANCED FUND (CONTINUED)
-------------------------------------------------------------------------------
Description Par Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - (CONTINUED)
-------------------------------------------------------------------------------
UTILITIES - 0.2%
Exelon Generation
6.200%, 10/01/17 $ 50,000 $ 58,382
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $3,738,974) 3,836,346
-----------
-------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS - 4.1%
-------------------------------------------------------------------------------
FHLMC Gold
6.000%, 09/01/17 35,672 38,282
5.000%, 10/01/20 15,068 16,259
4.500%, 03/01/18 13,482 14,311
4.500%, 05/01/19 20,452 21,888
4.500%, 07/01/23 36,731 39,139
FNMA
8.000%, 05/01/25 10,213 10,634
7.000%, 07/01/26 12,477 14,416
7.000%, 12/01/27 11,576 13,413
6.500%, 05/01/14 9,884 10,403
6.500%, 01/01/28 10,191 11,702
6.000%, 02/01/17 40,546 43,577
6.000%, 03/01/28 12,824 14,295
5.500%, 12/01/17 40,955 44,207
5.000%, 12/01/17 10,990 11,890
5.000%, 04/01/18 54,092 58,518
5.000%, 11/01/18 6,181 6,687
5.000%, 03/01/34 106,185 114,810
4.500%, 02/01/19 51,588 55,412
4.500%, 05/01/19 128,442 137,882
4.500%, 06/01/19 17,511 18,798
4.000%, 09/01/18 12,670 13,528
3.500%, 10/01/26 122,253 128,798
GNMA
7.000%, 02/15/26 14,586 17,056
7.000%, 10/15/27 13,113 15,382
7.000%, 03/15/29 14,351 17,036
6.500%, 05/15/28 10,904 12,747
6.500%, 01/15/29 14,490 16,939
6.000%, 04/15/29 43,885 49,895
-----------
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS
(Cost $903,892) 967,904
-----------
-------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES - 3.8%
-------------------------------------------------------------------------------
Chase Mortgage Finance,
Ser 2004-S1, CI A3
5.500%, 02/25/19 53,869 56,051
Citicorp Mortgage Securities,
Ser 2003-10, Cl A1
4.500%, 11/25/18 60,776 62,256
-------------------------------------------------------------------------------
Description Par Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES - (CONTINUED)
-------------------------------------------------------------------------------
CS First Boston Mortgage Securities,
Ser 2005-C1, Cl A4 (C)
5.014%, 02/15/38 $ 150,000 $ 162,967
DBUBS Mortgage Trust,
Ser 2011-LC1A, Cl A1 (A)
3.742%, 11/10/46 73,577 77,935
Lehman Mortgage Trust,
Ser 2007-8, Cl 1A1
6.000%, 09/25/37 158,659 129,791
Morgan Stanley Capital I,
Ser 2003-T11, Cl A4
5.150%, 06/13/41 99,361 103,134
Residential Funding Mortgage Securities I,
Ser 2004-S3, Cl A1
4.750%, 03/25/19 31,964 32,692
Sequoia Mortgage Trust,
Ser 2012-1, Cl 2A1 (C)
3.474%, 01/25/42 50,000 50,000
Wells Fargo Mortgage Backed Securities Trust,
Ser 2004-2, Cl A1
5.000%, 01/25/19 70,652 72,865
Ser 2003-M, Cl A1 (C)
4.690%, 12/25/33 21,876 22,024
Ser 2007-7, Cl A1
6.000%, 06/25/37 146,927 133,753
-----------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $916,491) 903,468
-----------
-------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 1.7%
-------------------------------------------------------------------------------
Avis Budget Rental Car Funding AESOP,
Ser 2011-1A, Cl A (A)
1.850%, 11/20/14 100,000 100,286
Centerpoint Energy Transition Bond,
Ser 2001-1, Cl A4
5.630%, 09/15/15 45,775 48,002
Hertz Vehicle Financing,
Ser 2011-1A, Cl A1 (A)
2.200%, 03/25/16 100,000 100,742
SLM Student Loan Trust,
Ser 2011-A, Cl A1 (A) (C)
1.249%, 10/15/24 87,490 86,643
World Omni Auto Receivables Trust,
Ser 2011-A, Cl A4
1.910%, 04/15/16 75,000 76,662
-----------
TOTAL ASSET-BACKED SECURITIES
(Cost $410,984) 412,335
-----------
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 47
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
BALANCED FUND (CONTINUED)
-------------------------------------------------------------------------------
Description Par Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
TAXABLE MUNICIPAL BONDS - 1.4%
-------------------------------------------------------------------------------
CALIFORNIA - 1.3%
California State, Public School
Improvements, Taxable, GO
6.200%, 10/01/19 $ 50,000 $ 59,024
Los Angeles, Department of Water &
Power Revenue, Build America Bonds,
Taxable, RB
6.574%, 07/01/45 50,000 68,248
Metropolitan Water District of Southern
California, Build America Bonds,
Taxable, RB
6.947%, 07/01/40 100,000 117,871
University of California Revenue,
Build America Bonds, Taxable, RB (C)
1.988%, 05/15/50 50,000 50,759
-----------
295,902
-----------
NEW JERSEY - 0.1%
New Jersey State, Turnpike Authority
Turnpike Revenue, Build America
Bonds, Taxable, RB
7.102%, 01/01/41 25,000 35,536
-----------
TOTAL TAXABLE MUNICIPAL BONDS
(Cost $283,936) 331,438
-----------
-------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 7.1%
-------------------------------------------------------------------------------
Credit Suisse Securities (USA)
0.180%, dated 01/31/12,
matures on 02/01/12,
repurchase price $1,665,399
(collateralized by a
U.S. Treasury obligation,
par value $1,645,000, 3.125%,
11/15/41, total market value
$1,716,405) 1,665,391 1,665,391
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $1,665,391) 1,665,391
-----------
TOTAL INVESTMENTS - 99.8%
(Cost $19,860,109) 23,516,945
-----------
OTHER ASSETS & LIABILITIES, NET - 0.2% 38,714
-----------
NET ASSETS - 100.0% $23,555,659
===========
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
++ THIS COMPANY IS DOMICILED OUTSIDE OF THE UNITED STATES. THE SECURITY'S
FUNCTIONAL CURRENCY IS THE UNITED STATES DOLLAR.
+ NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING.
(A) SECURITIES SOLD WITHIN THE TERMS OF A PRIVATE PLACEMENT MEMORANDUM,
EXEMPT FROM REGISTRATION UNDER SECTION 3(A)-4, 4(2) OR RULE 144A OF THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY BE SOLD ONLY TO THE DEALERS
IN THAT PROGRAM OR OTHER "ACCREDITED INVESTORS". THE VALUE OF THESE
SECURITIES AS OF JANUARY 31, 2012 WERE $476,453 AND REPRESENTED 2.0% OF
NET ASSETS.
(B) THE ISSUER IS IN DEFAULT OF CERTAIN DEBT COVENANTS. INCOME IS NOT BEING
ACCRUED. AS OF JANUARY 31, 2012, THE VALUE OF THESE SECURITIES AMOUNTED
TO $34,062, WHICH REPRESENTS 0.1% OF NET ASSETS.
(C) FLOATING RATE SECURITY. RATE DISCLOSED IS AS OF JANUARY 31, 2012.
ADR - AMERICAN DEPOSITARY RECEIPT
CL - CLASS
FHLMC - FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA - FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA - GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO - GENERAL OBLIGATION
MTN - MEDIUM TERM NOTE
PLC - PUBLIC LIABILITY COMPANY
RB - REVENUE BOND
REIT - REAL ESTATE INVESTMENT TRUST
SER - SERIES
SP ADR - SPONSORED AMERICAN DEPOSITARY RECEIPT
The accompanying notes are an integral part of the financial statements.
48 HIGHMARK(R) FUNDS
FUNDS SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
BALANCED FUND (CONCLUDED)
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
----------- ----------- ----------- ------------
Common Stock ** $15,400,063 $15,400,063 $ -- $ --
Corporate Obligations 3,836,346 -- 3,836,346 --
U.S. Government Agency Mortgage-Backed Obligations 967,904 -- 967,904 --
Mortgage-Backed Securities 903,468 -- 903,468 --
Asset-Backed Securities 412,335 -- 412,335 --
Taxable Municipal Bonds 331,438 -- 331,438 --
Repurchase Agreement 1,665,391 -- 1,665,391 --
----------- ----------- ----------- ------------
Total: $23,516,945 $15,400,063 $ 8,116,882 $ --
=========== =========== =========== ============
** See schedule of investments detail for industry breakout.
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 49
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
COGNITIVE VALUE FUND
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - 96.3%+
-------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 13.2%
America's Car-Mart * 5,500 $ 208,670
American Eagle Outfitters 10,900 153,581
ANN * 6,600 160,116
Asbury Automotive Group * 9,100 208,481
Ascena Retail Group * 6,500 229,905
Audiovox Corp, Cl A 10,000 127,200
Big Lots * 4,300 169,807
Biglari Holdings * 800 316,752
Blyth 3,600 226,620
Bob Evans Farms 4,900 173,117
Bridgepoint Education * 6,200 152,458
Brinker International 6,600 170,610
Build-A-Bear Workshop * 28,000 228,760
Charming Shoppes * 42,600 211,296
Cinemark Holdings 5,200 102,544
Collectors Universe 19,600 301,840
Dillard's, Cl A 4,300 190,275
Ethan Allen Interiors 3,500 82,600
Foot Locker 24,900 653,376
GameStop, Cl A * 12,800 299,008
Gannett 32,500 460,525
Harman International Industries 16,900 713,180
Helen of Troy * ++ 18,500 595,145
Hooker Furniture 7,000 84,350
Iconix Brand Group * 16,800 309,288
JOS A Bank Clothiers * 3,300 157,575
Lakes Entertainment * 34,000 69,360
Leggett & Platt 8,900 190,994
Men's Wearhouse 2,800 96,572
Meredith 3,400 107,066
Movado Group 16,100 296,401
Multimedia Games Holding * 33,900 255,945
Pier 1 Imports * 25,400 394,970
Rent-A-Center 4,600 155,572
Rick's Cabaret International * 26,700 276,078
Scholastic 2,800 82,628
Service Corp International 23,800 264,180
Smith & Wesson Holding * 44,800 230,272
Sotheby's 6,100 204,533
Standard Motor Products 23,900 494,491
Steiner Leisure * ++ 7,000 345,660
Systemax * 18,500 325,785
Thor Industries 6,800 208,488
True Religion Apparel * 15,600 565,344
Warnaco Group * 4,100 238,825
-----------
11,490,243
-----------
CONSUMER STAPLES - 4.0%
Andersons 2,900 117,595
B&G Foods, Cl A 15,100 342,166
Cal-Maine Foods 4,500 170,820
Corn Products International 1,800 99,882
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
-------------------------------------------------------------------------------
CONSUMER STAPLES - (CONTINUED)
Elizabeth Arden * 3,200 $ 115,104
Fresh Del Monte Produce 4,200 102,816
Hain Celestial Group * 2,200 84,898
J & J Snack Foods 6,200 316,386
Omega Protein * 19,400 167,034
Prestige Brands Holdings * 23,700 304,308
Ruddick 2,900 116,986
Smithfield Foods * 10,900 243,397
Susser Holdings * 17,400 414,990
Treehouse Foods * 1,300 73,502
Universal 9,000 403,920
Village Super Market, Cl A 5,800 184,150
Winn-Dixie Stores * 21,300 201,285
-----------
3,459,239
-----------
ENERGY - 5.7%
C&J Energy Services * 10,500 174,825
Cloud Peak Energy * 27,800 526,810
CVR Energy * 28,800 718,272
Helix Energy Solutions Group * 23,400 384,930
ION Geophysical * 26,400 196,152
Mitcham Industries * 15,300 335,988
Newpark Resources * 26,400 214,896
REX American Resources * 7,500 192,750
Stone Energy * 29,100 816,255
Superior Energy Services * 5,600 159,656
Tesoro * 27,700 693,331
W&T Offshore 8,300 179,363
Western Refining 24,400 403,332
-----------
4,996,560
-----------
FINANCIALS - 24.0%
1st Source 32,200 806,288
Advance America Cash
Advance Centers 44,290 348,562
Alexandria Real Estate Equities REIT 3,100 224,471
Allied World Assurance Co
Holdings AG ++ 7,150 439,940
American Financial Group 17,800 652,726
American Safety Insurance Holdings * 19,100 415,425
Amtrust Financial Services 17,400 451,182
Assurant 8,000 316,800
Assured Guaranty ++ 49,500 767,745
B of I Holding * 12,500 208,875
BBCN Bancorp * 61,200 619,344
BioMed Realty Trust REIT 16,500 306,405
Calamos Asset Management, Cl A 9,800 122,402
Cardinal Financial 31,400 351,994
Cash America International 9,300 407,898
CBL & Associates Properties REIT 4,200 72,954
Central Pacific Financial * 18,900 257,607
Citizens & Northern 31,000 651,310
The accompanying notes are an integral part of the financial statements.
50 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
COGNITIVE VALUE FUND (CONTINUED)
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
-------------------------------------------------------------------------------
FINANCIALS - (CONTINUED)
Citizens Republic Bancorp * 7,200 $ 92,520
Delphi Financial Group, Cl A 2,800 124,628
Dupont Fabros Technology REIT 8,700 221,850
Employers Holdings 7,400 132,904
Endurance Specialty Holdings ++ 11,000 411,400
Enterprise Financial Services 13,700 169,743
Entertainment Properties Trust REIT 1,800 80,046
Extra Space Storage REIT 22,300 586,936
Financial Institutions 13,100 223,879
First Citizens BancShares, Cl A 1,100 194,062
First Community Bancshares 15,000 191,400
First Defiance Financial 13,300 205,884
First Financial 7,500 262,650
First Interstate Bancsystem 10,500 144,480
German American Bancorp 5,359 107,823
Heartland Financial USA 7,700 127,050
Heritage Commerce * 17,400 86,304
Hudson Valley Holding 17,000 373,150
Interactive Brokers Group, Cl A 11,300 170,856
Liberty Property Trust REIT 2,300 76,567
Mack-Cali Realty REIT 15,100 434,276
Maiden Holdings ++ 60,900 567,588
Meadowbrook Insurance Group 15,700 156,529
Merchants Bancshares 4,400 125,180
MI Developments (Canada) 6,100 213,317
MicroFinancial 14,900 97,595
Mission West Properties REIT 81,600 765,408
Nelnet, Cl A 18,400 453,560
Ocwen Financial * 30,600 440,334
Old National Bancorp 28,100 330,737
One Liberty Properties REIT 33,100 574,285
Pacific Premier Bancorp * 30,500 230,580
Peoples Bancorp 8,900 139,374
Pinnacle Financial Partners * 3,600 60,624
Portfolio Recovery Associates * 2,500 162,375
Post Properties REIT 6,000 268,140
Presidential Life 9,600 107,040
ProAssurance 5,300 432,639
Protective Life 9,900 247,599
PS Business Parks REIT 12,800 795,392
Republic Bancorp, Cl A 27,700 703,857
RLI 6,300 449,316
Sandy Spring Bancorp 18,700 341,462
SVB Financial Group * 4,100 237,964
Validus Holdings ++ 11,100 355,977
Webster Financial 28,700 608,440
World Acceptance * 2,300 146,556
-----------
20,852,204
-----------
HEALTH CARE - 6.5%
Anika Therapeutics * 9,100 83,720
Cambrex * 16,300 128,118
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
-------------------------------------------------------------------------------
HEALTH CARE - (CONTINUED)
Centene * 19,300 $ 872,360
Chemed 9,000 505,260
Cooper 5,900 425,626
Health Net * 3,600 135,864
Hi-Tech Pharmacal * 2,900 113,042
Hill-Rom Holdings 11,100 366,411
Magellan Health Services * 14,800 722,536
Molina Healthcare * 5,100 156,111
Par Pharmaceutical * 6,900 249,159
PerkinElmer 11,800 282,964
RTI Biologics * 73,300 252,885
Select Medical Holdings * 14,100 116,889
Triple-S Management, Cl B * ++ 9,000 191,970
Viropharma * 10,700 318,753
WellCare Health Plans * 12,200 729,072
-----------
5,650,740
-----------
INDUSTRIAL - 18.9%
Aircastle 13,300 187,530
Alaska Air Group * 8,700 662,331
Albany International, Cl A 5,300 127,306
Allegiant Travel * 5,000 274,850
Ampco-Pittsburgh 23,500 504,075
Argan 29,900 433,550
Arkansas Best 31,100 563,532
Barnes Group 7,000 177,030
Barrett Business Services 40,600 781,550
Belden 4,600 180,366
Briggs & Stratton 18,600 290,346
Brink's 17,900 504,601
Cascade 4,400 250,008
Consolidated Graphics * 1,600 81,264
Courier 11,500 142,255
Crane 9,700 465,600
Deluxe 6,100 155,977
Douglas Dynamics 9,600 130,656
DXP Enterprises * 7,600 256,348
EMCOR Group 5,200 149,916
EnerSys * 9,900 286,902
Espey Manufacturing & Electronics 12,900 307,665
Fly Leasing, ADR 39,400 536,234
Gibraltar Industries * 15,500 242,885
HNI 9,400 255,022
Hubbell, Cl B 2,400 172,704
Huron Consulting Group * 6,800 254,864
ICF International * 10,500 297,570
Kadant * 23,400 567,684
Kelly Services, Cl A 17,530 283,285
Kennametal 10,400 448,344
Lincoln Electric Holdings 10,200 438,090
McGrath Rentcorp 2,500 79,600
Miller Industries 8,600 140,266
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 51
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
COGNITIVE VALUE FUND (CONTINUED)
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
-------------------------------------------------------------------------------
INDUSTRIAL - (CONTINUED)
NACCO Industries, Cl A 8,700 $ 889,140
NCI Building Systems * 19,900 233,029
Perma-Fix Environmental Services * 79,600 127,360
Primoris Services Corp 40,700 647,537
R.R. Donnelley & Sons 14,000 159,040
RCM Technologies * 15,800 85,952
Robbins & Myers 6,500 315,640
Sauer-Danfoss * 6,900 347,760
SL Industries * 29,600 531,320
Tredegar 14,200 350,172
Triumph Group 8,300 519,331
Twin Disc 5,300 163,929
U.S. Home Systems * 21,800 198,162
United Stationers 2,600 84,058
URS * 17,800 732,470
Versar * 43,300 131,199
Wabtec 4,900 337,071
-----------
16,483,376
-----------
INFORMATION TECHNOLOGY - 13.1%
Brightpoint * 37,300 437,156
CACI International, Cl A * 4,600 269,974
ChipMOS TECHNOLOGIES Bermuda * ++ 24,500 201,145
Convergys * 33,000 439,230
CVD Equipment * 10,700 153,331
Dice Holdings * 43,600 412,892
Diebold 8,400 266,196
Entegris * 47,500 455,050
Fair Isaac 11,200 405,888
IAC/InterActiveCorp 14,400 620,208
Ingram Micro, Cl A * 6,700 127,166
Insight Enterprises * 30,400 561,184
IXYS * 21,200 290,864
Jabil Circuit 24,900 564,234
Kulicke & Soffa Industries * 38,200 412,942
LML Payment Systems * ++ 100,800 288,288
MAXIMUS 16,900 761,007
MKS Instruments 22,700 684,405
MTS Systems 17,400 798,486
Netgear * 7,200 286,704
Newport * 37,100 685,237
Novellus Systems * 9,400 443,210
Plantronics 13,200 491,568
Tech Data * 5,300 275,176
TeleNav * 56,300 418,309
Vishay Intertechnology * 53,400 655,752
-----------
11,405,602
-----------
MATERIALS - 6.4%
Boise 22,600 172,664
Buckeye Technologies 22,300 747,719
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
-------------------------------------------------------------------------------
INFORMATION TECHNOLOGY - (CONTINUED)
Cabot 3,000 $ 108,600
Core Molding Technologies * 33,200 282,200
Domtar ++ 3,900 336,882
Friedman Industries 40,800 427,176
Haynes International 4,200 255,192
Innophos Holdings 11,000 549,120
Innospec * 13,300 430,521
KapStone Paper and Packaging * 18,200 317,772
Material Sciences * 6,700 53,064
Minerals Technologies 1,600 101,520
Myers Industries 42,000 559,020
Neenah Paper 4,000 95,080
PH Glatfelter 12,500 184,750
Rockwood Holdings * 5,100 257,550
Steel Dynamics 11,300 180,235
UFP Technologies * 34,100 523,094
-----------
5,582,159
-----------
TELECOMMUNICATION SERVICES - 0.4%
Leap Wireless International * 9,000 77,040
USA Mobility 20,300 287,245
-----------
364,285
-----------
UTILITIES - 4.1%
Cleco 15,000 596,400
El Paso Electric 2,500 87,000
Great Plains Energy 5,900 121,658
PNM Resources 10,500 187,005
Portland General Electric 22,700 566,138
Southwest Gas 2,000 83,600
TECO Energy 8,700 157,035
Transportadora de Gas del Sur SA,
SP ADR 27,900 83,421
UGI 5,900 158,769
Unisource Energy 23,200 864,432
Westar Energy 22,200 631,368
-----------
3,536,826
-----------
TOTAL COMMON STOCK
(Cost $72,877,955) 83,821,234
-----------
-------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANIES - 3.1%
-------------------------------------------------------------------------------
iShares Russell 2000 Value Index
Fund ETF 9,300 651,465
iShares S&P SmallCap 600 Value
Index Fund ETF 8,700 654,762
Rydex S&P SmallCap 600 Pure
Value ETF 24,300 963,541
Vanguard S&P Small-Cap 600
Value ETF 7,500 476,775
-----------
TOTAL REGISTERED INVESTMENT COMPANIES
(Cost $2,222,420) 2,746,543
-----------
The accompanying notes are an integral part of the financial statements.
52 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
COGNITIVE VALUE FUND (CONCLUDED)
-------------------------------------------------------------------------------
Description Par Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 1.1%
-------------------------------------------------------------------------------
Credit Suisse Securities (USA)
0.180%, dated 01/31/12,
matures on 02/01/12,
repurchase price $939,889
(collateralized by a U.S.
Treasury obligation, par
value $930,000, 3.125%,
11/15/41, total market
value $970,369) $ 939,884 $ 939,884
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $939,884) 939,884
-----------
TOTAL INVESTMENTS - 100.5%
(Cost $76,040,259) 87,507,661
-----------
OTHER ASSETS & LIABILITIES, NET - (0.5)% (437,856)
-----------
NET ASSETS - 100.0% $87,069,805
===========
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
++ THIS COMPANY IS DOMICILED OUTSIDE OF THE UNITED STATES. THE SECURITY'S
FUNCTIONAL CURRENCY IS THE UNITED STATES DOLLAR.
+ NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING.
ADR - AMERICAN DEPOSITARY RECEIPT
CL - CLASS
ETF - EXCHANGE TRADED FUND
REIT - REAL ESTATE INVESTMENT TRUST
S&P - STANDARD & POOR'S
SP ADR - SPONSORED AMERICAN DEPOSITARY RECEIPT
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------- ------------ ------------- -------------
Common Stock ** $ 83,821,234 $ 83,821,234 $ -- $ --
Registered Investment Companies 2,746,543 2,746,543 -- --
Repurchase Agreement 939,884 -- 939,884 --
------------- ------------ ------------- -------------
Total: $ 87,507,661 $ 86,567,777 $ 939,884 $ --
============= ============ ============= =============
** See schedule of investments detail for industry breakout.
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 53
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
ENHANCED GROWTH FUND
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - 98.1%+
-------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 3.8%
Amazon.com * 3,660 $ 711,650
Comcast, Cl A 20,000 531,800
Expedia 10,480 339,238
Garmin ++ 7,050 293,985
Netflix * 4,580 550,516
Priceline.com * 1,300 688,324
-----------
3,115,513
-----------
HEALTH CARE - 7.5%
Affymax * 12,000 95,880
Agilent Technologies 9,760 414,507
Alexion Pharmaceuticals * 5,000 383,800
Alkermes * ++ 6,000 112,860
Amgen 5,000 339,550
Amylin Pharmaceuticals * 8,000 113,840
Ariad Pharmaceuticals * 12,000 177,000
Biogen Idec * 3,000 353,760
Bristol-Myers Squibb 4,000 128,960
Celgene * 6,000 436,200
Cubist Pharmaceuticals * 4,000 163,280
Dendreon * 4,000 54,320
Endo Pharmaceuticals Holdings * 6,000 223,020
Gilead Sciences * 9,500 463,980
Illumina * 5,000 258,800
Incyte * 8,000 141,600
InterMune * 6,000 90,000
Life Technologies * 4,000 193,720
Myriad Genetics * 4,000 94,640
NuPathe * 29,000 63,510
Optimer Pharmaceuticals * 12,000 155,640
Perrigo 2,200 210,320
QIAGEN * ++ 8,000 129,440
Questcor Pharmaceuticals * 3,000 106,290
Rigel Pharmaceuticals * 10,000 97,700
Salix Pharmaceuticals * 3,000 144,600
Teva Pharmaceutical
Industries, SP ADR 8,000 361,040
United Therapeutics * 4,000 196,720
Vertex Pharmaceuticals * 6,000 221,700
Warner Chilcott, Cl A * 9,000 151,830
XenoPort * 12,500 52,375
-----------
6,130,882
-----------
INFORMATION TECHNOLOGY - 86.0%
Accenture, Cl A ++ 22,350 1,281,549
ACI Worldwide * 9,100 276,458
Activision Blizzard 37,100 457,814
Adobe Systems * 14,000 433,300
Advanced Micro Devices * 50,600 339,526
Akamai Technologies * 8,000 258,000
Alcatel-Lucent, SP ADR * 84,000 146,160
Altera 9,000 358,110
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
-------------------------------------------------------------------------------
INFORMATION TECHNOLOGY - (CONTINUED)
Amdocs * ++ 16,100 $ 473,984
Amphenol, Cl A 8,500 462,655
Analog Devices 12,150 475,429
Apple * 16,200 7,394,976
Applied Materials 45,250 555,670
ASML Holding ++ 12,847 552,293
Atmel * 15,000 145,650
Autodesk * 19,900 716,400
Automatic Data Processing 12,000 657,360
Avnet * 8,590 299,533
Baidu, SP ADR * 4,000 510,080
BMC Software * 19,300 699,432
Broadcom, Cl A * 24,610 845,107
CA 20,500 528,490
Check Point Software Technologies * ++ 19,000 1,069,510
Cisco Systems 85,000 1,668,550
Citrix Systems * 12,800 834,688
Cognizant Technology Solutions, Cl A * 19,170 1,375,448
Computer Sciences 6,000 154,980
Corning 37,610 484,041
Cree * 5,000 127,150
Cypress Semiconductor * 11,600 199,462
Dell * 31,300 539,299
eBay * 31,100 982,760
Electronic Arts * 10,550 195,913
EMC * 45,720 1,177,747
Equinix * 4,500 539,820
F5 Networks * 9,000 1,077,660
Fairchild Semiconductor International * 15,000 209,700
Fiserv * 7,800 490,542
Flextronics International * ++ 30,000 206,100
Google, Cl A * 4,800 2,784,528
GT Advanced Technologies * 42,200 363,764
Harris 8,230 337,430
Hewlett-Packard 32,210 901,236
Hitachi, ADR 9,500 526,585
IAC/InterActiveCorp 9,125 393,014
Informatica * 10,000 423,000
Intel 82,000 2,166,440
International Business Machines 13,550 2,609,730
Intersil, Cl A 14,650 164,959
Intuit 8,650 488,206
Juniper Networks * 19,600 410,228
KLA-Tencor 15,000 766,950
Lam Research * 11,550 491,915
Lexmark International, Cl A 8,000 279,200
Linear Technology 12,350 411,502
Marvell Technology Group * ++ 57,650 895,305
Maxim Integrated Products 15,000 402,600
Microchip Technology 13,000 479,830
Micron Technology * 70,100 532,059
Microsoft 114,070 3,368,487
The accompanying notes are an integral part of the financial statements.
54 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
ENHANCED GROWTH FUND (CONTINUED)
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
-------------------------------------------------------------------------------
INFORMATION TECHNOLOGY - (CONTINUED)
NetApp * 22,020 $ 831,035
Netease.com, ADR * 5,300 253,499
Nintendo, ADR 17,100 289,674
Nokia, SP ADR 29,000 146,160
Novellus Systems * 8,000 377,200
Nuance Communications * 20,000 570,400
NVIDIA * 33,425 493,687
ON Semiconductor * 60,700 528,090
Open Text (Canada) * 5,000 253,450
Oracle 70,990 2,001,918
Paychex 10,100 318,150
Polycom * 14,000 279,300
Qualcomm 35,600 2,093,992
Red Hat * 15,200 704,824
Research In Motion (Canada) * 8,780 146,011
Riverbed Technology * 18,300 438,102
Salesforce.com * 10,150 1,185,520
Samsung Electronics, GDR ++ 2,350 1,157,375
SanDisk * 20,000 917,600
SAP, ADR 6,300 381,024
Seagate Technology ++ 35,000 739,900
Siliconware Precision Industries, ADR 34,309 193,846
Sohu.com * 4,900 292,138
Symantec * 25,000 429,750
SYNNEX * 12,400 448,632
Taiwan Semiconductor
Manufacturing, SP ADR 31,506 443,604
TE Connectivity ++ 14,300 487,630
Teradata * 12,850 688,246
Teradyne * 20,000 327,000
Texas Instruments 36,000 1,165,680
TIBCO Software * 13,500 351,945
Trimble Navigation * 5,600 262,248
VeriSign 18,400 681,904
VMware, Cl A * 6,700 611,509
Western Digital * 16,000 581,600
Xilinx 18,000 645,300
Yahoo! * 27,000 417,690
-----------
70,533,947
-----------
TELECOMMUNICATION SERVICES - 0.8%
American Tower, REIT 7,050 447,746
Millicom International Cellular ++ 2,450 242,501
-----------
690,247
-----------
TOTAL COMMON STOCK
(Cost $52,333,427) 80,470,589
-----------
-------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY - 0.7%
-------------------------------------------------------------------------------
PowerShares Trust Series I 9,100 550,641
-----------
TOTAL REGISTERED INVESTMENT COMPANY
(Cost $521,471) 550,641
-----------
-------------------------------------------------------------------------------
Description Par Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 1.3%
-------------------------------------------------------------------------------
Credit Suisse Securities (USA)
0.180%, dated 01/31/12,
matures on 02/01/12,
repurchase price $1,090,806
(collateralized by a U.S.
Treasury obligation,
par value $1,080,000, 3.125%,
11/15/41, total market
value $1,126,880) $1,090,800 $ 1,090,800
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $1,090,800) 1,090,800
-----------
TOTAL INVESTMENTS - 100.1%
(Cost $53,945,698) 82,112,030
-----------
OTHER ASSETS & LIABILITIES, NET - (0.1)% (54,250)
-----------
NET ASSETS - 100.0% $82,057,780
===========
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
++ THIS SECURITY IS DOMICILED OUTSIDE OF THE UNITED STATES. THE SECURITY'S
FUNCTIONAL CURRENCY IS THE UNITED STATES DOLLAR.
+ NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING.
ADR - AMERICAN DEPOSITARY RECEIPT
CL - CLASS
GDR - GLOBAL DEPOSITARY RECEIPT
SP ADR - SPONSORED AMERICAN DEPOSITARY RECEIPT
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 55
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
ENHANCED GROWTH FUND (CONCLUDED)
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2- significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ----------- ------------
Common Stocks ** $ 80,470,589 $ 80,470,589 $ -- $ --
Registered Investment Company 550,641 550,641 -- --
Repurchase Agreement 1,090,800 -- 1,090,800 --
------------ ------------ ----------- ------------
Total: $ 82,112,030 $ 81,021,230 $ 1,090,800 $ --
============ ============ =========== ============
** See schedule of investments detail for industry breakout.
The accompanying notes are an integral part of the financial statements.
56 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
EQUITY INCOME FUND
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - 98.8%+
-------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 5.6%
Foot Locker 10,780 $ 282,867
Home Depot 7,267 322,582
Target 5,037 255,930
Time Warner 10,849 402,064
-----------
1,263,443
-----------
CONSUMER STAPLES - 4.9%
Altria Group 13,830 392,772
JM Smucker 2,958 233,031
PepsiCo 4,370 286,978
SUPERVALU 27,302 188,657
-----------
1,101,438
-----------
ENERGY - 12.8%
Chevron 6,589 679,194
ConocoPhillips 4,370 298,078
ExxonMobil 10,079 844,015
Pengrowth Energy (Canada) 16,153 161,853
Spectra Energy 11,500 362,135
Williams 15,716 452,935
WPX Energy * 5,239 86,339
-----------
2,884,549
-----------
FINANCIALS - 23.9%
American Express 7,547 378,406
American Financial Group 5,871 215,290
Annaly Capital Management REIT 25,641 431,794
Bank of Hawaii 7,201 329,230
BOK Financial 5,852 325,956
Chimera Investment REIT 145,379 441,952
Chubb 4,444 299,570
Commerce Bancshares 9,746 378,340
Fifth Third Bancorp 25,805 335,723
Home Properties REIT 4,667 278,060
JPMorgan Chase 7,070 263,711
Macerich REIT 4,392 238,486
Rayonier REIT 7,162 327,518
Trustmark 16,357 385,534
U.S. Bancorp 17,935 506,126
Wells Fargo 8,370 244,488
-----------
5,380,184
-----------
HEALTH CARE - 11.1%
Bristol-Myers Squibb 18,213 587,187
Johnson & Johnson 8,605 567,156
Merck 12,355 472,702
Pfizer 24,553 525,434
UnitedHealth Group 6,614 342,539
-----------
2,495,018
-----------
INDUSTRIAL - 15.4%
Boeing 4,147 307,624
Deluxe 15,491 396,105
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
-------------------------------------------------------------------------------
Eaton 9,460 $ 463,824
General Electric 27,852 521,111
Lockheed Martin 4,147 341,381
National Presto Industries 3,758 367,232
Northrop Grumman 4,094 237,657
Raytheon 6,147 294,995
Textainer Group Holdings 6,748 213,169
WW Grainger 1,767 337,038
-----------
3,480,136
-----------
INFORMATION TECHNOLOGY - 7.9%
Intel 10,625 280,713
International Business Machines 3,905 752,103
Microsoft 15,500 457,715
Seagate Technology ++ 13,651 288,582
-----------
1,779,113
-----------
MATERIALS - 2.9%
EI Du Pont de Nemours 5,965 303,559
International Paper 11,178 348,083
-----------
651,642
-----------
TELECOMMUNICATION SERVICES - 5.9%
AT&T 7,798 229,339
BCE (Canada) 11,509 469,567
Verizon Communications 16,614 625,683
-----------
1,324,589
-----------
UTILITIES - 8.4%
CMS Energy 15,861 346,246
Duke Energy 16,148 344,114
Edison International 8,094 332,178
Exelon 10,045 399,590
Xcel Energy 17,354 461,616
-----------
1,883,744
-----------
TOTAL COMMON STOCK
(Cost $19,122,563) 22,243,856
-----------
-------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANIES - 1.2%
-------------------------------------------------------------------------------
Dreyfus Cash Management 61,925 61,925
SPDR S&P 500 ETF Trust 1,628 213,610
-----------
TOTAL REGISTERED INVESTMENT COMPANIES
(Cost $267,856) 275,535
-----------
TOTAL INVESTMENTS - 100.0%
(Cost $19,390,419) 22,519,391
-----------
OTHER ASSETS & LIABILITIES, NET - 0.0% 5,281
-----------
NET ASSETS - 100.0% $22,524,672
===========
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 57
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
EQUITY INCOME FUND (CONCLUDED)
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
++ THIS COMPANY IS DOMICILED OUTSIDE OF THE UNITED STATES. THE SECURITY'S
FUNCTIONAL CURRENCY IS THE UNITED STATES DOLLAR.
+ NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING.
ETF - EXCHANGE TRADED FUND
REIT - REAL ESTATE INVESTMENT TRUST
S&P - STANDARD & POOR'S
SPDR - STANDARD & POOR'S DEPOSITARY RECEIPTS
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
----------- ----------- ----------- ------------
Investment in Securities** $22,519,391 $22,519,391 $ -- $ --
=========== =========== =========== ============
** See schedule of investments detail for industry and security type
breakouts.
The accompanying notes are an integral part of the financial statements.
58 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
GENEVA MID CAP GROWTH FUND
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - 97.4%+
-------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 20.7%
Chipotle Mexican Grill * 32,305 $ 11,865,303
Coach 196,730 13,780,936
Deckers Outdoor * 61,440 4,967,424
Dick's Sporting Goods 365,945 15,080,593
Gentex 286,485 7,697,852
LKQ * 441,345 14,387,847
O'Reilly Automotive * 208,495 16,994,427
Panera Bread, Cl A * 116,970 17,340,803
Polaris Industries 59,530 3,833,732
Tractor Supply 216,630 17,497,205
-------------
123,446,122
-------------
CONSUMER STAPLES - 3.7%
Church & Dwight 283,160 12,846,969
JM Smucker 114,030 8,983,283
-------------
21,830,252
-------------
ENERGY - 9.9%
CARBO Ceramics 55,610 5,408,072
Concho Resources * 132,330 14,114,318
FMC Technologies * 252,850 12,923,164
Oil States International * 143,355 11,423,960
Range Resources 125,510 7,219,335
Whiting Petroleum * 157,650 7,896,689
-------------
58,985,538
-------------
FINANCIALS - 5.8%
Affiliated Managers Group * 89,065 8,951,923
East West Bancorp 346,170 7,601,893
IntercontinentalExchange * 76,515 8,759,437
Signature Bank * 158,700 9,228,405
-------------
34,541,658
-------------
HEALTH CARE - 12.2%
Cerner * 239,235 14,567,019
CR Bard 71,380 6,604,078
DENTSPLY International 156,360 5,901,026
Edwards Lifesciences * 47,655 3,939,639
IDEXX Laboratories * 158,710 13,425,279
Perrigo 56,445 5,396,142
SXC Health Solutions * 203,205 12,814,107
Varian Medical Systems * 158,115 10,415,035
-------------
73,062,325
-------------
INDUSTRIAL - 20.4%
AMETEK 226,630 10,651,610
CH Robinson Worldwide 127,540 8,779,854
Copart * 222,070 10,446,173
Expeditors International of
Washington 202,815 9,055,690
Fastenal 314,890 14,699,065
Genesee & Wyoming, Cl A * 136,615 8,483,792
IDEX 166,980 6,766,030
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
-------------------------------------------------------------------------------
INDUSTRIAL - (CONTINUED)
IHS, Cl A * 152,610 $ 13,655,543
Lincoln Electric Holdings 222,110 9,539,625
Roper Industries 164,090 15,324,365
Stericycle * 166,900 14,022,938
-------------
121,424,685
-------------
INFORMATION TECHNOLOGY - 23.2%
Amphenol, Cl A 227,060 12,358,876
ANSYS * 230,690 13,954,438
Citrix Systems * 165,915 10,819,317
Cognizant Technology Solutions, Cl A * 212,740 15,264,095
F5 Networks * 66,715 7,988,454
FactSet Research Systems 112,015 9,893,165
Fiserv * 115,745 7,279,203
Intuit 262,605 14,821,426
MICROS Systems * 264,895 13,167,930
Red Hat * 144,095 6,681,685
Riverbed Technology * 275,310 6,590,921
Teradata * 151,805 8,130,676
Trimble Navigation * 251,290 11,767,911
-------------
138,718,097
-------------
MATERIALS - 1.5%
Sigma-Aldrich 135,740 9,235,750
-------------
TOTAL COMMON STOCK
(Cost $448,854,904) 581,244,427
-------------
-------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY - 2.7%
-------------------------------------------------------------------------------
Dreyfus Cash Management 16,007,488 16,007,488
-------------
TOTAL REGISTERED INVESTMENT COMPANY
(Cost $16,007,488) 16,007,488
-------------
TOTAL INVESTMENTS - 100.1%
(Cost $464,862,392) 597,251,915
-------------
OTHER ASSETS & LIABILITIES, NET - (0.1)% (711,518)
-------------
NET ASSETS - 100.0% $ 596,540,397
=============
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
+ NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING.
CL - CLASS
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 59
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
GENEVA MID CAP GROWTH FUND (CONCLUDED)
A summary of the inputs used to value the Fund's net assets as of Januray 31,
2012 is as follows (see Note 2- significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ----------- ------------
Investment in Securities** $597,251,915 $597,251,915 $ -- $ --
============ ============ =========== ============
** See schedule of investments detail for industry and security type
breakout.
The accompanying notes are an integral part of the financial statements.
60 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
GENEVA SMALL CAP GROWTH FUND
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - 98.6%+
-------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 18.0%
BJ's Restaurants * 10,650 $ 532,820
Dick's Sporting Goods 7,850 323,498
Hibbett Sports * 17,830 854,592
JOS A Bank Clothiers * 8,635 412,321
LKQ * 17,590 573,434
Monro Muffler Brake 21,847 916,263
Panera Bread, Cl A * 4,125 611,531
Ulta Salon, Cosmetics & Fragrance * 11,280 859,762
Vitamin Shoppe * 10,630 454,326
-------------
5,538,547
-------------
CONSUMER STAPLES - 1.7%
TreeHouse Foods * 9,280 524,691
-------------
ENERGY - 8.3%
Dril-Quip * 10,140 668,936
GeoResources * 22,270 681,685
Rosetta Resources * 12,590 604,194
SM Energy 8,130 590,075
-------------
2,544,890
-------------
FINANCIALS - 4.9%
Affiliated Managers Group * 3,100 311,581
MarketAxess Holdings 15,670 486,554
Texas Capital Bancshares * 22,475 712,907
-------------
1,511,042
-------------
HEALTH CARE - 19.2%
Cantel Medical 10,255 323,750
Haemonetics * 7,640 496,294
HMS Holdings * 22,385 738,929
IDEXX Laboratories * 5,335 451,288
Medidata Solutions * 24,440 510,796
MWI Veterinary Supply * 8,200 643,782
Neogen * 10,860 353,710
PAREXEL International * 20,050 483,205
Quality Systems 12,860 521,602
SXC Health Solutions * 13,345 841,536
Techne 7,715 526,549
-------------
5,891,441
-------------
INDUSTRIAL - 20.5%
Acuity Brands 11,825 688,570
Aerovironment * 8,570 238,846
Allegiant Travel * 8,675 476,865
CIRCOR International 12,410 470,463
Donaldson 8,610 622,503
Genesee & Wyoming, Cl A * 13,950 866,295
Healthcare Services Group 34,595 646,581
Kaydon 10,815 369,008
Marten Transport 24,880 543,628
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
-------------------------------------------------------------------------------
INDUSTRIAL - (CONTINUED)
Middleby * 6,730 $ 647,090
RBC Bearings * 15,575 705,236
-------------
6,275,085
-------------
INFORMATION TECHNOLOGY - 22.8%
Bottomline Technologies * 24,745 676,528
Concur Technologies * 10,915 571,400
Constant Contact * 20,425 510,216
DTS * 12,660 358,658
Factset Research Systems 4,900 432,768
Interactive Intelligence Group * 20,765 535,945
Liquidity Services * 16,050 553,886
LogMeIn * 11,230 447,291
Opnet Technologies 12,340 437,453
Pegasystems 11,515 326,565
Riverbed Technology * 21,845 522,969
Tyler Technologies * 24,625 865,076
Ultimate Software Group * 11,135 742,593
-------------
6,981,348
-------------
MATERIALS - 3.2%
Balchem 18,632 705,035
Sensient Technologies 6,770 268,227
-------------
973,262
-------------
TOTAL COMMON STOCK
(Cost $25,918,753) 30,240,306
-------------
-------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY - 1.7%
-------------------------------------------------------------------------------
Dreyfus Cash Management 520,901 520,901
-------------
TOTAL REGISTERED INVESTMENT COMPANY
(Cost $520,901) 520,901
-------------
TOTAL INVESTMENTS - 100.3%
(Cost $26,439,654) 30,761,207
-------------
OTHER ASSETS & LIABILITIES, NET - (0.3)% (79,888)
-------------
NET ASSETS - 100.0% $ 30,681,319
=============
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
+ NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING.
CL - CLASS
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 61
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
GENEVA SMALL CAP GROWTH FUND (CONCLUDED)
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2- significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ----------- ------------
Investment in Securities** $ 30,761,207 $ 30,761,207 $ -- $ --
============ ============ =========== ============
** See schedule of investments detail for industry and security type
breakout.
The accompanying notes are an integral part of the financial statements.
62 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
INTERNATIONAL OPPORTUNITIES FUND
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - 98.2%
-------------------------------------------------------------------------------
AUSTRALIA - 6.2%
Ausdrill 250,000 $ 944,869
Australia & New Zealand
Banking Group 60,000 1,363,796
Beach Energy 500,000 785,621
BHP Billiton 40,000 1,591,626
Commonwealth Bank of Australia 30,000 1,613,496
CSL 25,000 826,229
Flight Centre (A) 30,000 614,695
GrainCorp 100,000 832,334
Iluka Resources 50,000 972,471
Leighton Holdings 35,000 870,606
Stockland 250,000 891,786
Suncorp Group * 70,000 624,993
Telstra 170,000 601,000
-----------
12,533,522
-----------
BELGIUM - 2.6%
Anheuser-Busch InBev NV 20,000 1,212,688
Belgacom 25,000 780,412
Delhaize Group 15,000 816,906
KBC Groep NV 50,000 948,005
Nyrstar * 80,000 747,050
UCB 17,000 691,341
-----------
5,196,402
-----------
BRAZIL - 5.5%
Banco do Brasil 110,000 1,711,825
Banco do Estado do Rio Grande do Sul 70,000 806,090
BM&FBovespa 90,000 566,106
Companhia de Bebidas das Americas
(AmBev), ADR 15,000 545,850
Cosan Industria e Comercio 40,000 647,207
Eletropaulo Metropolitana
Eletricidade de Sao Paulo 50,000 1,036,229
Embraer 30,000 822,600
Ez Tec Empreendimentos e Participacoes 60,000 609,203
Klabin 220,000 1,019,918
Petroleo Brasileiro, ADR 45,000 1,374,750
Telefonica Brasil 25,000 696,114
Ultrapar Participacoes 30,000 606,971
Vale, SP ADR 30,000 759,000
-----------
11,201,863
-----------
CANADA - 2.7%
Alimentation Couche Tard 30,000 911,040
Barrick Gold 17,000 838,556
Cenovus Energy 25,000 912,287
Centerra Gold 40,000 791,862
Intact Financial 20,000 1,179,216
Precision Drilling * 90,000 923,606
-----------
5,556,567
-----------
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)
-------------------------------------------------------------------------------
CHINA - 0.4%
Yangzijiang Shipbuilding Holdings 1,000,000 $ 878,483
-----------
CYPRUS - 0.5%
ProSafe 120,000 930,629
-----------
FRANCE - 7.0%
Arkema 12,000 969,732
AtoS 17,000 854,336
AXA 44,311 672,634
BNP Paribas 20,000 846,828
Casino Guichard-Perrachon 12,000 1,067,364
Christian Dior 9,000 1,273,773
Cie de St-Gobain 20,000 889,993
Natixis 200,000 614,781
Safran 25,000 778,940
Sanofi 20,000 1,477,305
Suez Environnement 50,000 640,026
Total 30,000 1,585,546
Valeo 20,000 938,783
Vinci 18,000 834,898
Vivendi 40,000 837,148
-----------
14,282,087
-----------
GERMANY - 4.3%
BASF 22,000 1,691,510
Bayer 15,000 1,050,490
Bayerische Motoren Werke 20,000 1,710,660
Deutsche Post 60,000 996,730
E.ON 35,000 748,299
Freenet 60,000 805,624
Hannover Rueckversicherung 20,000 1,064,355
SAP * 12,000 725,023
-----------
8,792,691
-----------
HONG KONG - 4.2%
BOC Hong Kong Holdings 500,000 1,321,677
Cheung Kong Holdings 80,000 1,076,941
Giordano International 1,500,000 1,197,246
Johnson Electric Holdings 1,200,000 710,224
Kerry Properties 350,000 1,342,630
Power Assets Holdings 140,000 1,010,019
SmarTone Telecommunications Holding 400,000 677,730
Sun Hung Kai Properties 90,000 1,246,373
-----------
8,582,840
-----------
HUNGARY - 1.2%
MOL Hungarian Oil and Gas * 10,000 835,658
OTP Bank 50,000 891,888
Richter Gedeon Nyrt 4,500 740,091
-----------
2,467,637
-----------
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 63
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
INTERNATIONAL OPPORTUNITIES FUND (CONTINUED)
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)
-------------------------------------------------------------------------------
IRELAND - 1.8%
CRH 60,000 $ 1,190,356
Experian 70,000 948,078
Kerry Group 25,000 917,756
Shire 20,000 663,725
-----------
3,719,915
-----------
ITALY - 1.7%
Enel SpA 160,000 654,231
ENI SpA 40,000 884,238
Intesa Sanpaolo SpA 600,000 1,145,847
Pirelli & C SpA 80,000 739,830
-----------
3,424,146
-----------
JAPAN - 17.9%
Aeon 60,000 791,131
Aisin Seiki 20,000 631,855
Asahi Glass 100,000 814,747
Asahi Kasei 120,000 758,856
Canon 20,000 863,290
Daiwa House Industry 70,000 884,414
East Japan Railway 12,000 776,961
Fuji Oil 50,000 701,260
Heiwa 40,000 719,496
Hitachi 300,000 1,676,725
Idemitsu Kosan 6,500 703,555
Isuzu Motors 150,000 759,643
Itochu 100,000 1,087,641
K's Holdings 20,000 699,292
Kao 30,000 789,557
KDDI 100 633,692
Marubeni 120,000 828,129
Medipal Holdings 70,000 763,186
Melco Holdings 25,000 633,036
Mitsubishi Chemical Holdings 120,000 673,839
Mitsui 45,000 763,973
Mizuho Financial Group 600,000 905,274
NHK Spring 100,000 959,066
Nippon Express 200,000 800,315
Nippon Light Metal 450,000 596,300
Nippon Telegraph and Telephone 12,000 599,843
Nishi-Nippon City Bank 250,000 731,435
Nissan Motor 100,000 943,322
Nomura Research Institute 40,000 910,522
ORIX 10,000 935,450
Osaka Gas 250,000 1,003,674
OTSUKA 10,000 716,347
Resona Holdings 200,000 889,530
SANKYU 240,000 922,592
Sega Sammy Holdings 40,000 865,914
Sharp 75,000 645,500
Softbank 20,000 557,072
Sumitomo 60,000 861,978
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)
-------------------------------------------------------------------------------
JAPAN - (CONTINUED)
Sumitomo Heavy Industries 150,000 $ 960,378
Sumitomo Mitsui Financial Group 40,000 1,272,632
Sumitomo Mitsui Trust Holdings 250,000 780,635
Takeda Pharmaceutical 20,000 868,538
YAMADA DENKI 13,000 828,916
Zeon 100,000 877,722
-----------
36,387,233
-----------
NETHERLANDS - 3.7%
Aalberts Industries 50,000 937,541
AEGON * 200,000 969,261
ING Groep * 90,000 819,123
Koninklijke Ahold 60,000 795,029
Koninklijke DSM 15,000 769,620
Koninklijke KPN 60,000 657,685
Nutreco 12,000 850,438
Royal Dutch Shell, Cl B 50,000 1,818,863
-----------
7,617,560
-----------
NEW ZEALAND - 0.8%
Chorus 150,000 403,742
Telecom 750,000 1,297,299
-----------
1,701,041
-----------
NORWAY - 3.5%
Fred Olsen Energy 25,000 942,134
Gjensidige Forsikring 70,000 809,528
Statoil 80,000 2,005,795
Telenor 50,000 815,153
TGS Nopec Geophysical 60,000 1,501,278
Yara International 25,000 1,006,051
-----------
7,079,939
-----------
POLAND - 1.8%
Bank Pekao 15,000 732,614
KGHM Polska Miedz 15,000 648,940
PGE Grupa Energetyczna 120,000 761,993
Polski Koncern Naftowy Orlen * 65,000 739,680
Powszechna Kasa Oszczednosci
Bank Polski 75,000 810,013
-----------
3,693,240
-----------
RUSSIA - 1.3%
Gazprom, SP ADR 75,000 903,750
Lukoil, SP ADR 12,000 700,080
MMC Norilsk Nickel, ADR 30,000 575,100
Mobile TeleSystems, SP ADR 30,000 502,800
-----------
2,681,730
-----------
The accompanying notes are an integral part of the financial statements.
64 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
INTERNATIONAL OPPORTUNITIES FUND (CONTINUED)
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)
-------------------------------------------------------------------------------
SINGAPORE - 1.4%
DBS Group Holdings 80,000 $ 861,788
Golden Agri-Resources 1,700,000 993,362
UOL Group 300,000 1,097,110
-----------
2,952,260
-----------
SOUTH KOREA - 5.7%
Honam Petrochemical * 4,000 1,305,025
Hynix Semiconductor * 50,000 1,195,086
Hyundai Motor 5,000 983,665
Kia Motors 20,000 1,201,763
Korean Air Lines * 25,000 1,132,773
KT&G 14,000 979,570
Samsung Electronics 2,500 2,463,613
Shinhan Financial Group * 40,000 1,593,448
SK Telecom 6,000 761,116
-----------
11,616,059
-----------
SPAIN - 1.6%
Banco Santander 120,000 933,943
Gas Natural SDG 45,000 735,775
Mapfre 250,000 830,608
Repsol YPF 25,000 686,723
-----------
3,187,049
-----------
SWITZERLAND - 4.5%
ABB * 60,000 1,252,797
Nestle 30,000 1,719,174
Novartis 20,000 1,082,021
Roche Holding 10,000 1,692,558
Sika 400 825,638
Swatch Group 2,000 842,586
Swiss Life Holding * 8,000 794,351
Zurich Financial Services * 4,000 960,348
-----------
9,169,473
-----------
TURKEY - 2.6%
Arcelik 200,000 866,702
Haci Omer Sabanci Holding 250,000 956,749
KOC Holding 220,000 856,797
Tupras Turkiye Petrol Rafinerileri 35,000 797,760
Turk Telekomunikasyon 170,000 759,659
Turkiye Halk Bankasi 150,000 987,703
-----------
5,225,370
-----------
UNITED KINGDOM - 15.3%
AstraZeneca 38,085 1,833,133
Barclays 300,000 1,004,806
BHP Billiton 35,000 1,170,895
BP 250,000 1,854,909
-------------------------------------------------------------------------------
Description Shares/Par Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)
-------------------------------------------------------------------------------
UNITED KINGDOM - (CONTINUED)
British American Tobacco 30,000 $ 1,378,979
Britvic 120,000 650,489
Burberry Group 30,000 634,415
Compass Group 110,000 1,020,958
Croda International 30,000 914,750
Drax Group 100,000 837,536
Firstgroup 140,000 683,895
GlaxoSmithKline 70,000 1,555,311
HSBC Holdings 168,000 1,402,295
IG Group Holdings 120,000 895,745
IMI 70,000 941,459
Imperial Tobacco Group 30,000 1,073,117
Inmarsat 80,000 504,759
John Wood Group 77,777 806,449
Old Mutual 600,000 1,380,397
Petrofac 90,000 2,063,505
Reckitt Benckiser Group 18,000 957,580
Rentokil Initial * 600,000 709,581
Rio Tinto 25,000 1,498,976
Rolls-Royce Holdings * 70,000 811,299
Tesco 150,000 755,437
Unilever 60,000 1,934,447
Vodafone Group 300,000 807,438
WH Smith 120,000 1,043,807
-----------
31,126,367
-----------
TOTAL COMMON STOCK
(Cost $182,552,286) 200,004,103
-----------
-------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANIES - 0.2%
-------------------------------------------------------------------------------
Fidelity Institutional Government Portfolio (B) 150,000 150,000
Invesco AIM Government & Agency Portfolio (B) 150,000 150,000
JP Morgan US Government Money Market (B) 35,000 35,000
RBC US Government Money Market (B) 150,580 150,580
-----------
TOTAL REGISTERED INVESTMENT COMPANIES
(Cost $485,580) 485,580
-----------
-------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 1.7%
-------------------------------------------------------------------------------
BNP Paribas (B)
0.200%, dated 01/31/12, matures on
02/01/12, repurchase price $150,001
(collateralized by a Novartis
Capital corporate bond, par value
$135,632, 4.400%, 04/24/20, total
market value $157,501) $ 150,000 150,000
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 65
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
INTERNATIONAL OPPORTUNITIES FUND (CONCLUDED)
-------------------------------------------------------------------------------
Description Par Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - (CONTINUED)
-------------------------------------------------------------------------------
Credit Suisse Securities (USA) 0.180%, dated
01/31/12, matures on 02/01/12, repurchase
price $3,228,481 (collateralized by a U.S.
Treasury obligation, par value $3,185,000,
3.125%, 11/15/41, total market value
$3,323,253) $3,228,464 $ 3,228,464
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,378,464) 3,378,464
------------
TOTAL INVESTMENTS - 100.1%
(Cost $186,416,330) 203,868,147
------------
OTHER ASSETS & LIABILITIES, NET - (0.1)% (120,924)
------------
NET ASSETS - 100.0% $203,747,223
============
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
(A) THIS SECURITY OR PARTIAL POSITION OF THIS SECURITY IS ON LOAN AT JANUARY
31, 2012. THE TOTAL VALUE OF SECURITIES ON LOAN AT JANUARY 31, 2012 IS
$573,210.
(B) THIS SECURITY WAS PURCHASED WITH CASH COLLATERAL RECEIVED FROM SECURITIES
LENDING.
ADR - AMERICAN DEPOSITARY RECEIPT
CL - CLASS
SP ADR - SPONSORED AMERICAN DEPOSITARY RECEIPT
SPA - STANDBY PURCHASE AGREEMENT
FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF JANUARY 31, 2012 WERE AS FOLLOWS:
PRINCIPAL
CONTRACTS AMOUNT NET
TO BUY OR COVERED BY COUNTER- UNREALIZED
TO SELL CURRENCY CONTRACTS EXPIRATION PARTY DEPRECIATION**
-----------------------------------------------------------------------------
Sell EUR 11,000,000 04/12 BBH $ (137,984)
==============
** The primary risk exposure is foreign exchange contracts.
BBH - BROWN BROTHERS HARRIMAN & CO.
EUR - EUROPEAN EURO
A summary of the inputs used to value the Fund's net assets as of Janaury 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------- ------------- ------------- --------------
Assets:
Common Stocks*** $ 200,004,103 $ 200,004,103 $ -- $ --
Registered Investment Companies 485,580 485,580 -- --
Repurchase Agreements 3,378,464 -- 3,378,464 --
Liabilities:
Derivatives (1)
Foreign Exchange Contracts (137,984) -- (137,984) --
------------- ------------- ------------- --------------
Total: $ 203,730,163 $ 200,489,683 $ 3,240,480 $ --
============= ============= ============= ==============
*** See schedule of investments detail for country breakout.
(1) Investments in derivatives include open foreign currency contracts.
The accompanying notes are an integral part of the financial statements.
66 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
LARGE CAP CORE EQUITY FUND
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - 99.0%+
-------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 9.1%
Autozone * 900 $ 313,092
Bed Bath & Beyond * 2,800 169,960
Coach 3,100 217,155
Dollar General * 4,300 183,223
Home Depot 29,995 1,331,478
Las Vegas Sands * 15,600 766,116
Liberty Interactive, Cl A * 9,900 169,488
Macy's 20,700 697,383
McDonald's 6,500 643,825
PetSmart 4,625 246,143
Sally Beauty Holdings * 9,280 191,354
Starbucks 6,100 292,373
Target 6,300 320,103
Walt Disney 6,970 271,133
Yum! Brands 3,575 226,405
-----------
6,039,231
-----------
CONSUMER STAPLES - 11.1%
Altria Group 19,510 554,084
Coca-Cola 26,360 1,780,091
Coca-Cola Enterprises 51,600 1,382,364
Constellation Brands, Cl A * 8,100 169,290
Kellogg 3,000 148,560
Kraft Foods, Cl A 6,755 258,717
Molson Coors Brewing, Cl B 6,800 291,652
Philip Morris International 14,323 1,070,931
Procter & Gamble 27,200 1,714,688
-----------
7,370,377
-----------
ENERGY - 11.6%
Anadarko Petroleum 4,800 387,456
Chevron 16,600 1,711,128
ConocoPhillips 14,030 956,986
Denbury Resources * 11,500 216,890
EQT 3,600 181,872
ExxonMobil 31,962 2,676,498
Occidental Petroleum 8,071 805,244
Schlumberger ++ 3,457 259,863
Valero Energy 20,900 501,391
-----------
7,697,328
-----------
FINANCIALS - 1 1.7%
Allied World Assurance Co Holdings AG ++ 7,300 449,169
Allstate 9,000 259,650
Discover Financial Services 23,600 641,448
Fifth Third Bancorp 29,100 378,591
IntercontinentalExchange * 1,400 160,272
JPMorgan Chase 33,465 1,248,245
Regions Financial 38,300 199,926
Reinsurance Group of America 16,600 904,534
SLM 12,100 180,895
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
-------------------------------------------------------------------------------
FINANCIALS - (CONTINUED)
State Street 6,100 $ 238,998
SunTrust Banks 17,300 355,861
TD Ameritrade Holding 47,200 760,392
Travelers 3,300 192,390
Wells Fargo 61,845 1,806,492
-----------
7,776,863
-----------
HEALTH CARE - 13.0%
Aetna 17,300 756,010
Amgen 4,300 292,013
Biogen Idec * 2,600 306,592
Cardinal Health 4,400 189,332
Cigna 6,200 277,946
Cooper 6,800 490,552
Gilead Sciences * 35,245 1,721,366
Humana 1,900 169,138
McKesson 8,100 661,932
Merck 13,390 512,301
Pfizer 39,117 837,104
Stryker 4,900 271,607
Thermo Fisher Scientific * 13,300 703,570
UnitedHealth Group 3,880 200,945
Vertex Pharmaceuticals * 6,700 247,565
Watson Pharmaceuticals * 12,800 750,464
WellPoint 4,060 261,139
-----------
8,649,576
-----------
INDUSTRIAL - 1 1.4%
3M 1,500 130,065
Caterpillar 4,600 501,952
CSX 27,500 620,125
Cummins 2,100 218,400
Delta Air Lines * 114,000 1,202,700
Eaton 11,500 563,845
General Electric 82,655 1,546,475
Parker Hannifin 10,200 822,936
Tyco International ++ 4,400 224,180
United Parcel Service, Cl B 19,935 1,508,083
WW Grainger 1,255 239,379
-----------
7,578,140
-----------
INFORMATION TECHNOLOGY - 20.4%
Activision Blizzard 39,700 489,898
Analog Devices 4,620 180,781
Apple * 8,715 3,978,223
Applied Materials 33,200 407,696
Avago Technologies ++ 6,500 220,610
Cisco Systems 30,100 590,863
eBay * 27,100 856,360
Global Payments 28,200 1,410,564
Google, Cl A * 700 406,077
Hewlett-Packard 12,400 346,952
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 67
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
LARGE CAP CORE EQUITY FUND (CONTINUED)
-------------------------------------------------------------------------------
Description Shares Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
-------------------------------------------------------------------------------
INFORMATION TECHNOLOGY - (CONTINUED)
Intuit 3,500 $ 197,540
Mastercard, Cl A 900 320,013
Microsoft 35,525 1,049,053
NetApp * 5,160 194,738
Oracle 16,838 474,832
Qualcomm 11,175 657,314
Symantec * 10,100 173,619
Visa Inc, Cl A 2,000 201,280
Western Digital * 39,700 1,443,095
-----------
13,599,508
-----------
MATERIALS - 5.3%
Airgas 11,100 876,123
CF Industries Holdings 5,100 904,638
Eastman Chemical 19,300 971,176
Mosaic 3,300 184,701
Praxair 5,567 591,215
-----------
3,527,853
-----------
TELECOMMUNICATION SERVICES - 1.3%
Verizon Communications 22,900 862,414
-----------
UTILITIES - 4.1%
CenterPoint Energy 40,400 746,188
DTE Energy 14,300 760,900
Edison International 29,000 1,190,160
-----------
2,697,248
-----------
TOTAL COMMON STOCK
(Cost $59,152,654) 65,798,538
-----------
-------------------------------------------------------------------------------
Description Par Value
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 1.2%
-------------------------------------------------------------------------------
Credit Suisse Securities (USA) 0.180%, dated
01/31/12, matures on 02/01/12, repurchase
price $808,770 (collateralized by a U.S.
Treasury obligation, par value $800,000,
3.125%, 11/15/41, total market value
$834,726) $ 808,766 $ 808,766
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $808,766) 808,766
-----------
TOTAL INVESTMENTS - 100.2%
(Cost $59,961,420) 66,607,304
-----------
OTHER ASSETS & LIABILITIES, NET - (0.2)% (122,737)
-----------
NET ASSETS - 100.0% $66,484,567
===========
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
++ THIS COMPANY IS DOMICILED OUTSIDE OF THE UNITED STATES. THE SECURITY'S
FUNCTIONAL CURRENCY IS THE UNITED STATES DOLLAR.
+ NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING.
CL - CLASS
FUTURES - A SUMMARY OF THE OPEN FUTURES CONTRACTS HELD BY THE FUND AT JANUARY
31, 2012 IS AS FOLLOWS:
UNREALIZED
LONG FUTURES NUMBER OF EXPIRATION COUNTER- APPRECIATION
OUTSTANDING CONTRACTS DATE PARTY (DEPRECIATION)**
-------------------------------------------------------------------------
S&P 500 E-MINI 7 MARCH 2012 GSC $ 4,788
S&P 500 E-MINI 3 MARCH 2012 GSC (2,004)
-------------------------------------------------------------------------
NET UNREALIZED APPRECIATION ON FUTURES $ 2,784
** THE PRIMARY RISK EXPOSURE IS THE PRICE MOVEMENT OF THE UNDERLYING BASKET
OF EQUITY SECURITIES. SEE NOTE 2 FOR ADDITIONAL DETAILS.
The accompanying notes are an integral part of the financial statements.
68 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
LARGE CAP CORE EQUITY FUND (CONCLUDED)
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------- ------------- ------------- --------------
Assets:
Common Stock*** $ 65,798,538 $ 65,798,538 $ -- $ --
Repurchase Agreement 808,766 -- 808,766 --
Derivatives (1)
Equity Contracts 4,788 4,788 -- --
Liabilities:
Derivatives (1)
Equity Contracts (2,004) (2,004) -- --
------------- ------------- ------------- --------------
Total: $ 66,610,088 $ 65,801,322 $ 808,766 $ --
============= ============= ============= ==============
*** See schedule of investments detail for industry and security type
breakouts.
(1) Investments in derivatives include futures contracts.
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 69
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
LARGE CAP GROWTH FUND
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCK - 97.2%+
--------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 11.2%
Dick's Sporting Goods 33,010 $ 1,360,342
Dollar Tree * 11,990 1,016,872
Hasbro 21,770 759,991
Petsmart 24,250 1,290,585
Sally Beauty Holdings * 73,910 1,524,024
Tjx Companies 15,605 1,063,325
Yum! Brands 20,030 1,268,500
-----------
8,283,639
-----------
CONSUMER STAPLES - 14.0%
Anheuser-Busch InBev NV, SP ADR 35,882 2,181,626
Coca-Cola 49,852 3,366,506
Costco Wholesale 11,080 911,552
Kraft Foods, Cl A 27,175 1,040,803
Mead Johnson Nutrition 13,165 975,395
Philip Morris International 26,044 1,947,310
-----------
10,423,192
-----------
ENERGY - 10.1%
BG GRoup PLC, SP ADR 11,192 1,259,995
Chevron 9,730 1,002,968
ExxonMobil 26,425 2,212,829
Occidental Petroleum 20,615 2,056,759
Royal Dutch Shell PLC, ADR 13,505 963,717
-----------
7,496,268
-----------
HEALTH CARE - 9.6%
Covidien ++ 15,950 821,425
Fresenius Medical Care, ADR 11,500 822,250
Gilead Sciences * 29,835 1,457,141
Humana 6,740 599,995
Johnson & Johnson 20,665 1,362,030
Merck 23,225 888,588
Unitedhealth Group 23,260 1,204,635
-----------
7,156,064
-----------
INDUSTRIAL - 12.8%
Danaher 41,546 2,181,580
Donaldson 23,764 1,718,137
Jb Hunt Transport Services 28,610 1,461,113
Stericycle * 19,939 1,675,275
United Parcel Service, Cl B 12,205 923,308
WW Grainger 8,080 1,541,179
-----------
9,500,592
-----------
INFORMATION TECHNOLOGY - 26.5%
Accenture, Cl A ++ 14,375 824,263
Analog Devices 25,539 999,341
Apple * 16,392 7,482,620
ARM Holdings PLC, SP ADR 60,020 1,733,378
Broadcom, Cl A * 15,600 535,704
EMC * 88,358 2,276,102
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
--------------------------------------------------------------------------------
INFORMATION TECHNOLOGY - (CONTINUED)
Oracle 87,486 $ 2,467,105
Qualcomm 42,942 2,525,848
Riverbed Technology * 32,805 785,352
-----------
19,629,713
-----------
MATERIALS - 8.6%
Ecolab 49,510 2,992,384
Praxair 32,261 3,426,118
-----------
6,418,502
-----------
TELECOMMUNICATION SERVICES - 2.5%
American Tower, REIT 29,270 1,858,938
-----------
UTILITIES - 1.9%
ITC Holdings 10,207 752,358
Wisconsin Energy 18,319 622,846
-----------
1,375,204
-----------
TOTAL COMMON STOCK
(Cost $55,169,193) 72,142,112
-----------
--------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY - 2.3%
--------------------------------------------------------------------------------
Dreyfus Cash Management 1,690,565 1,690,565
-----------
TOTAL REGISTERED INVESTMENT COMPANY
(Cost $1,690,565) 1,690,565
-----------
TOTAL INVESTMENTS - 99.5%
(Cost $56,859,758) 73,832,677
-----------
OTHER ASSETS & LIABILITIES, NET - 0.5% 352,492
-----------
NET ASSETS - 100.0% $74,185,169
===========
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
++ THIS COMPANY IS DOMICILED OUTSIDE OF THE UNITED STATES. THE SECURITY'S
FUNCTIONAL CURRENCY IS THE UNITED STATES DOLLAR.
+ NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING.
ADR - AMERICAN DEPOSITARY RECEIPT
ARM - ADJUSTABLE RATE MORTGAGE
CL - CLASS
PLC - PUBLIC LIABILITY COMPANY
REIT - REAL ESTATE INVESTMENT TRUST
SP ADR - SPONSORED AMERICAN DEPOSITARY RECEIPT
The accompanying notes are an integral part of the financial statements.
70 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
LARGE CAP GROWTH FUND (CONCLUDED)
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ----------- ------------
Investments in Securities ** $ 73,832,677 $ 73,832,677 $ -- $ --
============ ============ =========== ============
** See schedule of investments detail for industry and security type
breakouts.
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 71
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
LARGE CAP VALUE FUND
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCK - 99.7%+
--------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 6.6%
Autoliv ++ 12,800 $ 807,552
Office Depot * 235,300 642,369
Time Warner Cable 19,700 1,452,284
Visteon * 15,500 744,000
Walt Disney 17,200 669,080
-----------
4,315,285
-----------
CONSUMER STAPLES - 9.5%
Altria Group 24,000 681,600
Carrefour SA (France) 38,050 868,505
CVS Caremark 49,500 2,066,625
Heineken, ADR 51,750 1,196,978
Unilever, NY Shares ++ 42,700 1,424,045
-----------
6,237,753
-----------
ENERGY - 14.8%
Apache 16,950 1,676,016
BP PLC, SP ADR 51,700 2,373,547
Chevron 19,856 2,046,756
CONSOL Energy 35,100 1,254,474
Ensco PLC, SP ADR 11,489 604,781
Williams 50,750 1,462,615
WPX Energy * 16,916 278,776
-----------
9,696,965
-----------
FINANCIALS - 23.8%
ACE ++ 28,850 2,007,960
Bank of America 212,300 1,513,699
Berkshire Hathaway, Cl B * 32,300 2,531,351
CIT Group * 42,250 1,611,415
Citigroup 74,900 2,300,928
JPMorgan Chase 66,950 2,497,235
Metlife 45,350 1,602,216
Mgic Investment * 120,300 455,937
Weyerhaeuser, REIT 57,100 1,143,142
-----------
15,663,883
-----------
HEALTH CARE - 9.4%
Humana 15,700 1,397,614
Merck 38,200 1,461,532
Pfizer 110,000 2,354,000
Teva Pharmaceutical Industries, SP ADR 21,200 956,756
-----------
6,169,902
-----------
INDUSTRIAL - 10.3%
Avis Budget Group * 36,300 520,905
Honeywell International 33,000 1,915,320
Jardine Matheson Holdings, ADR 19,200 1,001,280
--------------------------------------------------------------------------------
Description Shares/Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
--------------------------------------------------------------------------------
INDUSTRIAL - (CONTINUED)
Schindler Holding AG,
COP (Switzerland) 9,100 $ 1,056,806
Siemens AG, SP ADR 13,200 1,244,628
Tyco International ++ 20,550 1,047,023
-----------
6,785,962
-----------
INFORMATION TECHNOLOGY - 16.5%
CA 60,000 1,546,800
Hewlett-Packard 86,200 2,411,876
Hitachi, ADR 16,500 914,595
Microsoft 100,250 2,960,383
Texas Instruments 68,450 2,216,411
Western Union 43,150 824,165
-----------
10,874,230
-----------
MATERIALS - 4.8%
Anglo American PLC, ADR 47,250 977,603
Crown Holdings * 36,000 1,298,520
Vulcan Materials 20,500 899,130
-----------
3,175,253
-----------
TELECOMMUNICATION SERVICES - 2.5%
Vodafone Group PLC, SP ADR 59,850 1,621,334
-----------
UTILITIES - 1.5%
Questar 50,000 964,000
-----------
TOTAL COMMON STOCK
(Cost $66,151,908) 65,504,567
-----------
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 0.8%
--------------------------------------------------------------------------------
Credit Suisse Securities (USA)
0.180%, dated 01/31/12,
matures on 02/01/12,
repurchase price $527,160
(collateralized by a U.S.
Treasury obligation,
par value $520,000,
3.125%, 11/15/41,
total market value $542,572) $527,157 527,157
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $527,157) 527,157
-----------
TOTAL INVESTMENTS - 100.5%
(Cost $66,679,065) 66,031,724
-----------
OTHER ASSETS & LIABILITIES, NET - (0.5)% (306,351)
-----------
NET ASSETS - 100.0% $65,725,373
===========
The accompanying notes are an integral part of the financial statements.
72 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
LARGE CAP VALUE FUND (CONCLUDED)
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
++ THIS COMPANY IS DOMICILED OUTSIDE OF THE UNITED STATES. THE SECURITY'S
FUNCTIONAL CURRENCY IS THE UNITED STATES DOLLAR.
+ NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING.
ADR - AMERICAN DEPOSITARY RECEIPT
CL - CLASS
COP - CERTIFICATES OF PARTICIPATION
NY - NEW YORK
PLC - PUBLIC LIABILITY COMPANY
REIT - REAL ESTATE INVESTMENT TRUST
SP ADR - SPONSORED AMERICAN DEPOSITARY RECEIPT
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ----------- ------------
Common Stock ** $ 65,504,567 $ 65,504,567 $ -- $ --
Repurchase Agreement 527,157 - 527,157 --
------------ ------------ ----------- ------------
Total: $ 66,031,724 $ 65,504,567 $ 527,157 $ --
============ ============ =========== ============
** See schedule of investments detail for industry type breakout.
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 73
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
NYSE ARCA TECH 100 INDEX FUND
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCK - 99.2%+
--------------------------------------------------------------------------------
HEALTH CARE - 18.1%
Agilent Technologies 47,050 $ 1,998,213
Amgen 47,050 3,195,165
AstraZeneca PLC, SP ADR 47,050 2,265,458
Baxter International 47,050 2,610,334
Biogen Idec * 47,050 5,548,136
Boston Scientific * 47,050 280,418
Bristol-Myers Squibb 47,050 1,516,892
CONMED * 47,050 1,383,270
Gilead Sciences * 47,050 2,297,922
Life Technologies * 47,050 2,278,631
Medtronic 47,050 1,814,718
Novartis AG, ADR 47,050 2,557,638
St. Jude Medical 47,050 1,962,456
Thermo Fisher Scientific * 47,050 2,488,945
Valeant Pharmaceuticals
International * ++ 47,050 2,281,455
ViroPharma * 47,050 1,401,620
-----------
35,881,271
-----------
INDUSTRIAL - 6.0%
Goodrich 47,050 5,869,487
Lockheed Martin 47,050 3,873,156
Raytheon 47,050 2,257,930
-----------
12,000,573
-----------
INFORMATION TECHNOLOGY - 74.4%
Adobe Systems * 47,050 1,456,197
Altera 47,050 1,872,119
Amdocs * ++ 47,050 1,385,152
Amphenol, Cl A 47,050 2,560,931
Analog Devices 47,050 1,841,066
Apple * 47,050 21,477,384
Applied Materials 47,050 577,774
Arris Group * 47,050 549,544
Autodesk * 47,050 1,693,800
Automatic Data Processing 47,050 2,577,399
BMC Software * 47,050 1,705,092
Broadcom, CL A * 47,050 1,615,697
CA 47,050 1,212,949
Check Point Software Technologies * ++ 47,050 2,648,445
Ciena * 47,050 684,578
Cisco Systems 47,050 923,591
Citrix Systems * 47,050 3,068,130
Computer Sciences 47,050 1,215,301
Compuware * 47,050 368,872
Comtech Telecommunications 47,050 1,451,963
Corning 47,050 605,533
Cypress Semiconductor * 47,050 809,025
Dell * 47,050 810,671
Digital River * 47,050 753,270
DST Systems 47,050 2,296,510
eBay * 47,050 1,486,780
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
--------------------------------------------------------------------------------
Information Technology - (Continued)
EMC * 47,050 $ 1,212,008
Emulex * 47,050 491,202
F5 Networks * 47,050 5,633,767
Harmonic * 47,050 276,183
Harris 47,050 1,929,050
Hewlett-Packard 47,050 1,316,459
Intel 47,050 1,243,061
InterDigital 47,050 1,755,906
International Business Machines 47,050 9,061,830
Intuit 47,050 2,655,502
Ixia * 47,050 574,480
J2 Global 47,050 1,268,468
JDS Uniphase * 47,050 597,064
Juniper Networks * 47,050 984,756
KLA-Tencor 47,050 2,405,666
Lam Research * 47,050 2,003,859
Linear Technology 47,050 1,567,706
LSI * 47,050 356,168
MEMC Electronic Materials * 47,050 215,018
Microsoft 47,050 1,389,387
Motorola Solutions 47,050 2,183,591
NetApp * 47,050 1,775,667
Nokia, SP ADR 47,050 237,132
Novellus Systems * 47,050 2,218,408
NVIDIA * 47,050 694,929
Open Text * 47,050 2,384,965
Oracle 47,050 1,326,810
Parametric Technology * 47,050 1,184,249
Polycom * 47,050 938,648
Progress Software * 47,050 1,097,677
QLogic * 47,050 814,906
QUALCOMM 47,050 2,767,481
RealNetworks 47,050 480,381
Red Hat * 47,050 2,181,709
Salesforce.com * 47,050 5,495,440
SanDisk * 47,050 2,158,654
SAP, SP ADR 47,050 2,845,584
Seagate Technology ++ 47,050 994,637
Standard Microsystems * 47,050 1,212,008
Symantec * 47,050 808,790
Synopsys * 47,050 1,372,919
Tellabs 47,050 178,790
Teradata * 47,050 2,519,998
Teradyne * 47,050 769,268
Tessera Technologies * 47,050 931,590
Texas Instruments 47,050 1,523,479
VASCO Data Security International * 47,050 396,632
VeriSign 47,050 1,743,673
VMware, Cl A * 47,050 4,294,254
Websense * 47,050 889,245
Western Digital * 47,050 1,710,268
The accompanying notes are an integral part of the financial statements.
74 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
NYSE ARCA TECH 100 INDEX FUND (CONCLUDED)
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
--------------------------------------------------------------------------------
INFORMATION TECHNOLOGY - (CONTINUED)
Xerox Corp 47,050 $ 364,638
Xilinx 47,050 1,686,743
Yahoo! * 47,050 727,864
------------
147,496,340
------------
TELECOMMUNICATION SERVICES - 0.7%
Telephone and Data Systems 51,187 1,346,214
------------
TOTAL COMMON STOCK
(Cost $119,893,833) 196,724,398
------------
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANIES - 0.7%
--------------------------------------------------------------------------------
Dreyfus Cash Management 379,390 $ 379,390
PowerShares QQQ Trust Series 1 15,247 922,596
------------
TOTAL REGISTERED INVESTMENT COMPANIES
(Cost $1,261,924) 1,301,986
------------
TOTAL INVESTMENTS - 99.9%
(Cost $121,155,757) 198,026,384
------------
OTHER ASSETS & LIABILITIES, NET - 0.1% 184,993
------------
NET ASSETS - 100.0% $198,211,377
============
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
++ THIS COMPANY IS DOMICILED OUTSIDE OF THE UNITED STATES. THE SECURITY'S
FUNCTIONAL CURRENCY IS THE UNITED STATES DOLLAR.
+ NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING.
ADR - AMERICAN DEPOSITARY RECEIPT
CL - CLASS
PLC - PUBLIC LIABILITY COMPANY
SP ADR - SPONSORED AMERICAN DEPOSITARY RECEIPT
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ----------- ------------
Investments in Securities** $198,026,384 $198,026,384 $ -- $ --
============ ============ =========== ============
*** See schedule of investments detail for industry and security type
breakouts.
(1) Investments in derivatives include open futures contracts.
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 75
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
SMALL CAP CORE FUND
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCK - 98.7%+
--------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 15.7%
AFC Enterprises * 19,600 $ 330,260
Ameristar Casinos 37,800 739,368
Arbitron 21,400 764,194
Arctic Cat * 11,200 334,208
Bebe Stores 41,000 359,160
Bob Evans Farms 14,300 505,219
Brunswick 17,200 367,048
Capella Education * 7,600 321,708
Columbia Sportswear 19,700 903,245
Cooper Tire & Rubber 18,200 274,092
Dillard's, Cl A 5,700 252,225
Domino's Pizza * 11,100 362,415
Grand Canyon Education * 19,100 320,498
Movado Group 8,000 147,280
Papa John's International * 12,400 480,376
Pier 1 Imports * 112,800 1,754,040
Scholastic 17,800 525,278
Sinclair Broadcast Group, Cl A 30,900 379,452
Smith & Wesson Holding * 99,500 511,430
Sonic * 15,200 104,120
True Religion Apparel * 9,700 351,528
-----------
10,087,144
-----------
CONSUMER STAPLES - 2.4%
Casey's General Stores 9,800 499,212
Fresh Del Monte Produce ++ 21,000 514,080
Universal 12,000 538,560
-----------
1,551,852
-----------
ENERGY - 4.5%
C&J Energy Services * 12,500 208,125
Exterran Holdings * 44,000 408,320
Helix Energy Solutions Group * 43,600 717,220
Lufkin Industries 6,000 451,320
OYO Geospace * 1,800 158,418
REX American Resources * 6,700 172,190
Stone Energy * 4,400 123,420
Tesoro * 11,400 285,342
W&T Offshore 17,800 384,658
-----------
2,909,013
-----------
FINANCIALS - 21.7%
AG Mortgage Investment Trust 7,600 144,780
Alterra Capital Holdings ++ 19,100 461,647
American Assets Trust REIT 20,200 447,228
Anworth Mortgage Asset REIT 38,400 249,600
Banco Latinoamericano
de Comercio Exterior SA, Cl E ++ 14,800 273,948
CBL & Associates Properties REIT 31,900 554,103
Colonial Properties Trust REIT 9,300 198,834
Cousins Properties REIT 48,250 355,603
Dime Community Bancshares 14,900 205,322
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
--------------------------------------------------------------------------------
FINANCIALS - (CONTINUED)
Extra Space Storage REIT 33,600 $ 884,352
First American Financial 30,000 444,600
First Connecticut Bancorp 15,798 209,481
First Industrial Realty Trust REIT * 56,700 650,916
Flushing Financial 11,500 150,765
Forestar Group * 9,300 148,056
GFI Group 50,800 235,204
Huntington Bancshares 53,300 304,343
International Bancshares 33,600 645,792
Knight Capital Group, Cl A * 25,000 324,750
Lexington Realty Trust REIT 53,200 457,520
MGIC Investment * 48,900 185,331
Oriental Financial Group ++ 24,300 277,992
Pinnacle Financial Partners * 6,700 112,828
Post Properties REIT 19,400 866,986
Primerica 52,300 1,281,350
PrivateBancorp 29,400 415,716
Protective Life 20,100 502,701
PS Business Parks REIT 3,800 236,132
Radian Group 64,800 178,200
Sovran Self Storage REIT 11,400 530,328
StanCorp Financial Group 13,000 502,580
Trustmark 9,200 216,844
Validus Holdings ++ 12,900 413,703
Webster Financial 23,600 500,320
WesBanco 8,500 169,660
Westamerica Bancorporation 4,200 195,090
-----------
13,932,605
-----------
HEALTH CARE - 13.3%
Affymax * 26,000 207,740
Alnylam Pharmaceuticals * 10,200 117,912
Array Biopharma * 34,500 94,875
Auxilium Pharmaceuticals * 43,500 864,345
Cepheid * 8,700 383,322
Clovis Oncology * 10,300 195,597
Computer Programs & SYSTEMS 3,600 206,100
Conceptus * 11,900 147,322
Cyberonics * 6,300 204,750
Hi-Tech Pharmacal * 5,400 210,492
InterMune * 16,200 243,000
Jazz Pharmaceuticals 11,900 553,350
Lumenis * ++ 13 --
Magellan Health Services * 10,700 522,374
Medicis Pharmaceutical, Cl A 7,200 238,248
Onyx Pharmaceuticals * 34,500 1,412,430
Pacira Pharmaceuticals * 22,700 245,387
Par Pharmaceutical * 22,900 826,919
Questcor Pharmaceuticals * 7,900 279,897
Sirona Dental Systems * 6,000 290,100
Volcano * 13,400 375,870
WellCare Health Plans * 6,400 382,464
The accompanying notes are an integral part of the financial statements.
76 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
SMALL CAP CORE FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
--------------------------------------------------------------------------------
HEALTH CARE - (CONTINUED)
XenoPort * 28,500 $ 119,415
Zoll Medical * 6,000 411,480
-----------
8,533,389
-----------
INDUSTRIAL - 13.0%
AAR 18,900 400,491
Aircastle 14,700 207,270
Alaska Air Group * 10,500 799,365
AO Smith 2,150 91,332
Applied Industrial Technologies 5,200 200,616
Arkansas Best 28,700 520,044
Cascade 2,600 147,732
CDI 6,900 103,293
Clean Harbors * 16,300 1,034,235
Dycom Industries * 24,700 527,839
Ennis 11,000 181,940
Flow International * 42,300 159,471
FreightCar America * 12,800 277,888
Insperity 5,200 145,704
Knight Transportation 23,000 405,030
Knoll 7,300 116,508
Korn/Ferry International * 8,900 146,227
NCI Building Systems * 9,300 108,903
Resources Connection 50,900 632,178
Ryder System 1,000 56,280
Sauer-Danfoss * 17,600 887,040
Seaboard * 110 213,567
Swift Transportation CO * 34,400 396,632
Sykes Enterprises * 5,200 91,156
Taser International * 65,100 309,876
Titan Machinery * 6,600 163,284
-----------
8,323,901
-----------
INFORMATION TECHNOLOGY - 20.2%
Acxiom * 8,000 109,760
ADTRAN 21,400 741,082
Angie's List * 10,900 160,884
Aspen Technology * 23,100 416,031
Blackbaud 10,100 307,343
Brightpoint * 22,200 260,184
Cavium * 9,500 305,330
Cirrus Logic * 17,100 349,353
CommVault Systems * 7,400 347,800
Comtech Telecommunications 40,400 1,246,744
Convergys * 44,700 594,957
Cornerstone OnDemand * 13,900 253,536
Fair Isaac 15,400 558,096
Fairchild Semiconductor International * 34,600 483,708
Finisar * 15,700 318,082
Formfactor * 24,600 126,690
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
--------------------------------------------------------------------------------
INFORMATION TECHNOLOGY - (CONTINUED)
Imperva * 6,500 214,370
Integrated Device Technology * 57,000 361,380
Manhattan Associates * 27,600 1,211,364
Micrel 31,000 358,360
Microstrategy, Cl A * 1,300 149,656
MoneyGram International * 14,900 276,544
Monolithic Power Systems * 30,200 494,978
MTS Systems 3,500 160,615
Netgear * 1,500 59,730
NetSuite * 12,600 527,688
Novatel Wireless * 48,600 139,482
QLIK Technologies * 4,200 118,440
Quest Software * 29,800 606,430
Richardson Electronics 12,600 152,586
Sigma Designs * 25,600 154,368
TeleTech Holdings * 19,800 335,808
TIBCO Software * 14,100 367,587
Tyler Technologies * 13,000 456,690
Unisys * 11,900 249,543
----------
12,975,199
----------
MATERIALS - 5.4%
A. Schulman 22,300 546,350
AEP Industries * 4,100 135,464
Balchem 11,900 450,296
Coeur d'Alene Mines * 9,000 248,940
Deltic Timber 4,800 326,976
Domtar ++ 2,300 198,674
Flotek Industries * 15,400 180,796
Minerals Technologies 2,100 133,245
Neenah Paper 8,500 202,045
Rockwood Holdings * 2,300 116,150
Sensient Technologies 8,535 338,157
Stepan 2,800 240,632
Worthington Industries 19,400 357,154
----------
3,474,879
----------
UTILITIES - 2.5%
Atlantic Power * ++ 25,500 378,165
NorthWestern 2,600 91,364
PNM Resources 55,000 979,550
Unitil 5,300 146,439
----------
1,595,518
----------
TOTAL COMMON STOCK
(Cost $ 54,944,060) 63,383,500
----------
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 77
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
SMALL CAP CORE FUND (CONCLUDED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 1.4%
--------------------------------------------------------------------------------
Credit Suisse Securities (USA)
0.180%, dated 01/31/12,
matures on 02/01/12,
repurchase price $873,640
(collateralized by a U.S.
Treasury obligation,
par value $865,000
3.125%, 11/15/41,
total market value $902,547) $ 873,636 $ 873,636
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $873,636) 873,636
-----------
TOTAL INVESTMENTS - 100.1%
(Cost $55,817,696) 64,257,136
-----------
OTHER ASSETS & LIABILITIES, NET - (0.1)% (75,999)
-----------
NET ASSETS - 100.0% $64,181,137
===========
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
++ THIS COMPANY IS DOMICILED OUTSIDE OF THE UNITED STATES. THE SECURITY'S
FUNCTIONAL CURRENCY IS THE UNITED STATES DOLLAR.
+ NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING.
CL - CLASS
REIT - REAL ESTATE INVESTMENT TRUST
FUTURES - A SUMMARY OF THE OPEN FUTURES HELD BY THE FUND AT JANUARY 31, 2012 IS
AS FOLLOWS:
LONG FUTURES NUMBER OF EXPIRATION COUNTER- UNREALIZED
OUTSTANDING CONTRACTS DATE PARTY APPRECIATION**
--------------------------------------------------------------------------------
RUSSELL 2000 MINI
INDEX FUTURES 12 MARCH 2012 GSC $26,016
** THE PRIMARY RISK EXPOSURE IS THE PRICE MOVEMENT OF THE UNDERLYING BASKET
OF EQUITY SECURITIES. SEE NOTE 2 FOR ADDITIONAL DETAILS.
GSC - GOLDMAN SACHS COMPANY
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ----------- ------------
Assets:
Common Stock*** $63,383,500 $ 63,383,500 $ -- $ --
Repurchase Agreement 873,636 -- 873,636 --
Derivatives (1)
Equity Contracts 26,016 26,016 -- --
------------ ------------ ----------- ------------
Total: $64,283,152 $ 63,409,516 $ 873,636 $ --
=========== ============ =========== ============
*** See schedule of investments detail for industry breakout.
(1) Investments in derivatives include open futures contracts.
The accompanying notes are an integral part of the financial statements.
78 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
VALUE MOMENTUM FUND
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCK - 98.9%+
--------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 14.6%
Comcast, Cl A 280,200 7,142,298
Daimler ++ 50,000 2,781,500
Home Depot 117,450 5,213,605
McGraw-Hill 104,450 4,804,700
News, Cl A 271,800 5,117,994
Target 148,000 7,519,880
Time Warner Cable 78,200 5,764,904
Walt Disney 130,000 5,057,000
-----------
43,401,881
-----------
CONSUMER STAPLES - 11.8%
Altria Group 100,000 2,840,000
Diageo, SP ADR 46,200 4,092,858
Heineken, ADR 156,450 3,618,689
Henkel KGaa, SP ADR 85,000 4,408,950
Nestle, SP ADR 45,000 2,588,850
Philip Morris International 107,850 8,063,945
Unilever, NY Shares ++ 147,300 4,912,455
Walgreen 129,500 4,320,120
-----------
34,845,867
-----------
ENERGY - 13.3%
Apache 41,000 4,054,080
Chevron 79,200 8,163,936
Halliburton 83,200 3,060,096
Occidental Petroleum 31,500 3,142,755
Peabody Energy 104,000 3,545,360
Royal Dutch Shell PLC, ADR 113,400 8,316,756
Suncor Energy (Canada) 73,250 2,527,125
Williams 194,550 5,606,931
WPX Energy * 64,850 1,068,728
-----------
39,485,767
-----------
FINANCIALS - 15.0%
Bank of New York Mellon 148,850 2,996,350
Berkshire Hathaway, Cl B * 65,150 5,105,805
Citigroup 163,000 5,007,360
Goldman Sachs Group 34,650 3,862,435
JPMorgan Chase 190,000 7,087,000
MetLife 169,300 5,981,369
Wells Fargo 393,100 11,482,451
Weyerhaeuser, REIT 147,050 2,943,941
-----------
44,466,711
-----------
HEALTH CARE - 10.7%
Covidien ++ 87,650 4,513,975
Gilead Sciences * 33,500 1,636,140
Hospira * 41,100 1,416,306
Merck 150,000 5,739,000
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCK - (CONTINUED)+
--------------------------------------------------------------------------------
HEALTH CARE - (CONTINUED)
Pfizer 341,600 $ 7,310,240
Roche Holding, SP ADR 80,000 3,424,000
UnitedHealth Group 147,050 7,615,720
------------
31,655,381
------------
INDUSTRIAL - 17.2%
ABB, SP ADR * 134,450 2,800,594
Assa Abloy AB, ADR 300,000 4,080,000
Canadian Pacific Railway ++ 22,000 1,569,040
Dun & Bradstreet 46,050 3,813,400
Honeywell International 106,000 6,152,240
Jardine Matheson Holdings, ADR 43,050 2,245,058
Lockheed Martin 43,550 3,585,036
Rolls-Royce Holdings PLC, SP ADR 63,000 3,644,550
Schindler Holding Ag, Cop
(Switzerland) 27,000 3,135,578
Tyco International ++ 88,150 4,491,243
United Parcel Service, Cl B 93,500 7,073,275
United Technologies 64,350 5,041,822
Vinci (France) 73,250 3,397,572
------------
51,029,408
------------
INFORMATION TECHNOLOGY - 14.1%
Corning 215,850 2,777,990
Hewlett-Packard 171,000 4,784,580
Intel 298,050 7,874,481
Microsoft 490,000 14,469,700
Motorola Solutions 120,000 5,569,200
Texas Instruments 79,200 2,564,496
Western Union 195,000 3,724,500
------------
41,764,947
------------
MATERIALS - 1.4%
BHP Billiton PLC, ADR 33,800 2,275,754
Dow Chemical 54,450 1,824,620
------------
4,100,374
------------
UTILITIES - 0.8%
Questar 127,250 2,453,380
------------
TOTAL COMMON STOCK
(Cost $254,930,758) 293,203,716
------------
--------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY - 1.6%
--------------------------------------------------------------------------------
Dreyfus Cash Management 4,826,271 4,826,271
------------
TOTAL REGISTERED INVESTMENT COMPANY
(Cost $4,826,271) 4,826,271
------------
TOTAL INVESTMENTS - 100.5%
(Cost $259,757,029) 298,029,987
------------
OTHER ASSETS & LIABILITIES, NET - (0.5)% (1,397,387)
------------
NET ASSETS - 100.0% $296,632,600
============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 79
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
VALUE MOMENTUM FUND (CONCLUDED)
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
++ THIS COMPANY IS DOMICILED OUTSIDE OF THE UNITED STATES. THE SECURITY'S
FUNCTIONAL CURRENCY IS THE UNITED STATES DOLLAR.
+ NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING.
ADR - AMERICAN DEPOSITARY RECEIPT
CL - CLASS
COP - CERTIFICATES OF PARTICIPATION
NY - NEW YORK
PLC - PUBLIC LIABILITY COMPANY
REIT - REAL ESTATE INVESTMENT TRUST
SP ADR - SPONSORED AMERICAN DEPOSITARY RECEIPT
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes
to financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ----------- ------------
Investments in Securities ** $298,029,987 $298,029,987 $ -- $ --
============ ============ =========== ============
** See schedule of investments detail for industry breakout.
The accompanying notes are an integral part of the financial statements.
80 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
TACTICAL CAPITAL GROWTH ALLOCATION FUND
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
AFFILIATED EQUITY REGISTERED INVESTMENT COMPANIES - 82.9%
--------------------------------------------------------------------------------
HighMark Cognitive Value Fund,
Fiduciary Shares - 4.1% 170,578 $ 1,983,825
HighMark Enhanced Growth Fund,
Fiduciary Shares - 1.1% * 46,315 535,396
HighMark Equity Income Fund,
Fiduciary Shares - 2.4% 124,858 1,189,894
HighMark Geneva Mid Cap Growth Fund,
Fiduciary Shares - 4.5% * 93,266 2,192,675
HighMark Geneva Small Cap Growth Fund,
Fiduciary Shares - 2.7% * 42,851 1,323,652
HighMark International Opportunities Fund,
Fiduciary Shares - 11.9% 932,782 5,848,544
HighMark Large Cap Core Equity Fund,
Fiduciary Shares - 19.5% 1,098,104 9,542,527
HighMark Large Cap Growth Fund,
Fiduciary Shares - 4.4% 206,725 2,160,281
HighMark Large Cap Value Fund,
Fiduciary Shares - 13.8% 610,861 6,756,128
HighMark NYSE Arca Tech 100 Index Fund,
Fiduciary Shares - 1.3% * 19,755 660,015
HighMark Small Cap Core Fund,
Fiduciary Shares - 13.0% * 339,116 6,365,212
HighMark Value Momentum Fund,
Fiduciary Shares - 4.2% 134,271 2,050,320
-----------
TOTAL AFFILIATED EQUITY REGISTERED
INVESTMENT COMPANIES
(Cost $37,562,376) 40,608,469
-----------
--------------------------------------------------------------------------------
AFFILIATED FIXED INCOME REGISTERED INVESTMENT COMPANIES - 5.6%
--------------------------------------------------------------------------------
HighMark Bond Fund,
Fiduciary Shares - 0.1% 3,552 40,563
HighMark Short Term Bond Fund,
Fiduciary Shares - 5.5% 270,085 2,722,453
-----------
TOTAL AFFILIATED FIXED INCOME
REGISTERED INVESTMENT COMPANIES
(Cost $2,757,265) 2,763,016
-----------
--------------------------------------------------------------------------------
EQUITY REGISTERED INVESTMENT COMPANIES - 7.2%
--------------------------------------------------------------------------------
Fidelity Advisor Industrials Fund,
Institutional Class - 1.3% 23,243 630,589
Lazard Emerging Markets Equity Portfolio,
Institutional Class - 5.0% 129,428 2,425,488
Morgan Stanley Institutional
Fund - U.S. Real Estate Portfolio,
Institutional Class - 0.3% 10,542 168,042
Vanguard Health Care Fund,
Admiral Shares - 0.6% 5,355 298,156
-----------
TOTAL EQUITY REGISTERED INVESTMENT COMPANIES
(Cost $3,599,462) 3,522,275
-----------
--------------------------------------------------------------------------------
Description Shares/Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FIXED INCOME REGISTERED INVESTMENT COMPANY - 2.4%
--------------------------------------------------------------------------------
Eaton Vance Income Fund of Boston,
Institutional Class - 2.4% 200,511 $ 1,156,950
-----------
TOTAL FIXED INCOME REGISTERED
INVESTMENT COMPANY
(Cost $1,131,049) 1,156,950
-----------
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 1.4%
--------------------------------------------------------------------------------
Credit Suisse Securities (USA)
0.180%, dated 01/31/12,
matures on 02/01/12,
repurchase price $709,951
(collateralized by a U.S.
Treasury obligation,
par value $705,000,
3.125%, 11/15/41,
total market value $735,602) $ 709,947 709,947
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $709,947) 709,947
-----------
TOTAL INVESTMENTS - 99.5%
(Cost $45,760,099) 48,760,657
-----------
OTHER ASSETS & LIABILITIES, NET - 0.5% 256,797
-----------
NET ASSETS - 100.0% $49,017,454
===========
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
FUTURES - A SUMMARY OF THE OPEN FUTURES HELD BY THE FUND AT JANUARY 31, 2012 IS
AS FOLLOWS:
LONG FUTURES NUMBER OF EXPIRATION COUNTER- UNREALIZED
OUTSTANDING CONTRACTS DATE PARTY DEPRECIATION**
--------------------------------------------------------------------------------
JAPANESE YEN 3 MARCH 2012 GSC $(9,123)
** THE PRIMARY RISK EXPOSURE IS FOREIGN CURRENCY EXCHANGE RISK. SEE NOTE 2
FOR ADDITIONAL DETAILS.
GSC - GOLDMAN SACHS COMPANY
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 81
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
TACTICAL CAPITAL GROWTH ALLOCATION FUND (CONCLUDED)
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ----------- ------------
Assets:
Investments in Registered Investment Companies *** $ 48,050,710 $ 48,050,710 $ -- $ --
Repurchase Agreement 709,947 -- 709,947 --
Liabilities:
Derivatives (1)
Foreign Exchange Futures (9,123) -- (9,123) --
------------ ------------ ----------- ------------
Total: $ 48,751,534 $ 48,050,710 $ 700,824 $ --
============ ============ =========== ============
*** See schedule of investments detail for industry breakout.
(1) Investments in derivatives include open futures contracts.
The accompanying notes are an integral part of the financial statements.
82 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
TACTICAL GROWTH & INCOME ALLOCATION FUND
--------------------------------------------------------------------------------
Description Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
AFFILIATED EQUITY REGISTERED INVESTMENT COMPANIES - 64.2%
--------------------------------------------------------------------------------
HighMark Cognitive Value Fund,
Fiduciary Shares - 3.3% 178,242 $ 2,072,955
HighMark Enhanced Growth Fund,
Fiduciary Shares - 0.8% * 44,516 514,610
HighMark Equity Income Fund,
Fiduciary Shares - 1.9% 128,452 1,224,150
HighMark Geneva Mid Cap Growth Fund,
Fiduciary Shares - 3.9% 106,259 2,498,150
HighMark Geneva Small Cap Growth Fund,
Fiduciary Shares - 2.2% 44,859 1,385,684
HighMark International Opportunities Fund,
Fiduciary Shares - 9.7% 984,872 6,175,147
HighMark Large Cap Core Equity Fund,
Fiduciary Shares - 13.6% 992,246 8,622,615
HighMark Large Cap Growth Fund,
Fiduciary Shares - 3.6% 215,343 2,250,333
HighMark Large Cap Value Fund,
Fiduciary Shares - 11.0% 628,805 6,954,580
HighMark NYSE Arca Tech 100 Index Fund,
Fiduciary Shares - 1.0% * 18,813 628,542
HighMark Small Cap Core Fund,
Fiduciary Shares - 10.3% * 348,134 6,534,480
HighMark Value Momentum Fund,
Fiduciary Shares - 2.9% 121,831 1,860,359
-----------
TOTAL AFFILIATED EQUITY REGISTERED
INVESTMENT COMPANIES
(Cost $37,965,210) 40,721,605
-----------
--------------------------------------------------------------------------------
AFFILIATED FIXED INCOME REGISTERED INVESTMENT
COMPANIES - 21.5%
--------------------------------------------------------------------------------
HighMark Bond Fund,
Fiduciary Shares - 7.4% 414,473 4,733,280
HighMark Short Term Bond Fund,
Fiduciary Shares - 14.1% 885,951 8,930,383
-----------
TOTAL AFFILIATED FIXED INCOME
REGISTERED INVESTMENT COMPANIES
(Cost $13,612,171) 13,663,663
-----------
--------------------------------------------------------------------------------
EQUITY REGISTERED INVESTMENT COMPANIES - 5.3%
--------------------------------------------------------------------------------
Fidelity Advisor Industrials Fund,
Institutional Class - 1.0% 22,379 607,143
Lazard Emerging Markets Equity Portfolio,
Institutional Class - 3.8% 127,083 2,381,542
--------------------------------------------------------------------------------
Description Shares/Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY REGISTERED INVESTMENT COMPANIES - (CONTINUED)
--------------------------------------------------------------------------------
Morgan Stanley Institutional Fund - U.S.
Real Estate Portfolio,
Institutional Class - 0.2% 9,892 $ 157,672
Vanguard Health Care Fund,
Admiral Shares - 0.3% 3,976 221,390
-----------
TOTAL EQUITY REGISTERED
INVESTMENT COMPANIES
(Cost $3,389,110) 3,367,747
-----------
--------------------------------------------------------------------------------
FIXED INCOME REGISTERED INVESTMENT COMPANY - 4.7%
--------------------------------------------------------------------------------
Eaton Vance Income Fund of Boston,
Institutional Class - 4.7% 516,209 2,978,528
-----------
TOTAL FIXED INCOME REGISTERED
INVESTMENT COMPANY
(Cost $2,917,268) 2,978,528
-----------
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 4.4%
--------------------------------------------------------------------------------
Credit Suisse Securities (USA)
0.180%, dated 01/31/12,
matures on 02/01/12, repurchase
price $2,781,235 (collateralized by a U.S.
Treasury obligation, par value $2,745,000,
3.125%, 11/15/41, total market value
$2,884,153) $2,781,221 2,781,221
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $2,781,221) 2,781,221
-----------
TOTAL INVESTMENTS - 100.1%
(Cost $60,664,980) 63,512,764
-----------
OTHER ASSETS & LIABILITIES, NET - (0.1)% (45,537)
-----------
NET ASSETS - 100.0% $63,467,227
===========
--------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
FUTURES - A SUMMARY OF THE OPEN FUTURES HELD BY THE FUND AT JANUARY 31, 2012 IS
AS FOLLOWS:
SHORT FUTURES NUMBER OF EXPIRATION COUNTER- UNREALIZED
OUTSTANDING CONTRACTS DATE PARTY DEPRECIATION**
------------------------------------------------------------------
JAPANESE YEN 4 MARCH 2012 GSC $(12,164)
** THE PRIMARY RISK EXPOSURE IS FOREIGN CURRENCY EXCHANGE RISK. SEE NOTE 2
FOR ADDITIONAL DETAILS.
GSC - GOLDMAN SACHS COMPANY
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 83
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
TACTICAL GROWTH & INCOME ALLOCATION FUND (CONCLUDED)
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ------------ ------------
Assets:
Investments in Registered Investment
Companies*** $ 60,731,543 $ 60,731,543 $ -- $ --
Repurchase Agreement 2,781,221 -- 2,781,221 --
Liabilities:
Derivatives (1)
Foreign Exchange Futures (12,164) (12,164) -- --
------------ ------------ ------------ ------------
Total: $ 63,500,600 $ 60,719,379 $ 2,781,221 $ --
============ ============ ============ ============
*** See schedule of investments detail for industry breakout.
(1) Investments in derivatives include open futures contracts.
The accompanying notes are an integral part of the financial statements.
84 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
BOND FUND
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - 49.6%
--------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 7.1%
Comcast
5.700%, 07/01/19 $3,500,000 $ 4,135,410
Gap
5.950%, 04/12/21 3,750,000 3,597,520
Georgia-Pacific (A)
8.250%, 05/01/16 1,950,000 2,161,511
5.400%, 11/01/20 1,950,000 2,204,329
Macy's Retail Holdings
3.875%, 01/15/22 1,800,000 1,844,105
News America Holdings
7.750%, 02/01/24 1,000,000 1,248,511
Staples
9.750%, 01/15/14 1,500,000 1,719,056
Starwood Hotels & Resorts Worldwide
6.250%, 02/15/13 3,500,000 3,626,875
Time Warner Entertainment
8.375%, 03/15/23 5,000,000 6,703,875
-----------
27,241,192
-----------
ENERGY - 5.9%
Energy Transfer Partners
9.700%, 03/15/19 2,000,000 2,528,912
Enterprise Products Operating
4.050%, 02/15/22 2,230,000 2,303,599
Magellan Midstream Partners
6.550%, 07/15/19 3,000,000 3,557,799
4.250%, 02/01/21 500,000 526,590
Petrobras International Finance
3.875%, 01/27/16 3,000,000 3,071,655
Petrohawk Energy
7.875%, 06/01/15 4,000,000 4,240,000
Transcontinental Gas Pipe Line
7.250%, 12/01/26 2,250,000 2,898,623
Transocean
5.050%, 12/15/16 2,500,000 2,678,690
Williams Partners
5.250%, 03/15/20 1,000,000 1,102,324
-----------
22,908,192
-----------
FINANCIALS - 13.2%
American International Group
4.250%, 09/15/14 4,000,000 4,018,628
Bank of America, MTN
5.650%, 05/01/18 3,000,000 3,069,165
BB&T Capital Trust II
6.750%, 06/07/36 1,500,000 1,560,375
Berkshire Hathaway Finance
5.400%, 05/15/18 850,000 1,014,224
Boston Properties
4.125%, 05/15/21 3,000,000 3,158,586
Capital One Financial
4.750%, 07/15/21 1,350,000 1,420,960
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - (CONTINUED)
--------------------------------------------------------------------------------
FINANCIALS - (CONTINUED)
Citigroup
4.750%, 05/19/15 $3,500,000 $ 3,685,227
Ford Motor Credit
5.000%, 05/15/18 2,700,000 2,793,758
GE Global Insurance
7.750%, 06/15/30 5,000,000 6,216,390
General Electric Capital
3.350%, 10/17/16 6,000,000 6,331,212
HSBC Bank PLC (A)
2.000%, 01/19/14 2,350,000 2,319,347
HSBC Holdings PLC
5.100%, 04/05/21 750,000 814,942
JPMorgan Chase
4.250%, 10/15/20 4,400,000 4,478,637
Lehman Brothers Holdings, MTN (B)
5.625%, 01/24/13 4,000,000 1,090,000
NASDAQ OMX Group
5.250%, 01/16/18 2,000,000 2,143,010
NB Capital Trust IV
8.250%, 04/15/27 2,000,000 1,975,000
Wells Fargo
5.625%, 12/11/17 4,000,000 4,601,328
-----------
50,690,789
-----------
FOREIGN GOVERNMENTS - 1.8%
Export-Import Bank of Korea
4.000%, 01/11/17 3,500,000 3,568,961
Hydro Quebec, Ser IO
8.050%, 07/07/24 1,125,000 1,674,050
Province of Saskatchewan
9.375%, 12/15/20 1,000,000 1,507,597
-----------
6,750,608
-----------
HEALTH CARE - 4.1%
Amgen
3.875%, 11/15/21 3,350,000 3,488,713
Gilead Sciences
4.400%, 12/01/21 1,000,000 1,082,533
Laboratory Corp of America Holdings
4.625%, 11/15/20 3,000,000 3,205,398
Teva Pharmaceutical Finance
3.650%, 11/10/21 4,400,000 4,654,258
Wellpoint
7.000%, 02/15/19 2,000,000 2,460,510
6.000%, 02/15/14 1,000,000 1,087,275
-----------
15,978,687
-----------
INDUSTRIAL - 4.2%
American Airlines, Ser 11-1A
5.250%, 01/31/21 2,646,082 2,527,009
Continental Airlines Pass Through Trust,
Ser 2010-1, Cl A
4.750%, 01/12/21 3,579,696 3,713,935
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 85
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - (CONTINUED)
--------------------------------------------------------------------------------
INDUSTRIAL - (CONTINUED)
Continental Airlines, Ser 07-1A
5.983%, 04/19/22 $1,858,954 $ 1,982,203
Continental Airlines, Ser 98-1B (C)
6.748%, 03/15/17 618,009 587,108
Delta Air Lines, Ser 11-1A
5.300%, 04/15/19 5,000,000 5,250,000
L-3 Communications, Ser B
6.375%, 10/15/15 2,150,000 2,203,750
-----------
16,264,005
-----------
INFORMATION TECHNOLOGY - 1.6%
Hewlett-Packard
4.375%, 09/15/21 3,800,000 3,998,299
International Business Machines
6.500%, 01/15/28 1,500,000 1,989,629
-----------
5,987,928
-----------
MATERIALS - 4.4%
Alcoa
5.400%, 04/15/21 1,400,000 1,469,853
ArcelorMittal
5.500%, 03/01/21 1,900,000 1,856,971
Dow Chemical
4.250%, 11/15/20 3,750,000 4,003,635
Ecolab
4.350%, 12/08/21 1,950,000 2,149,503
Rio Tinto Finance USA
6.500%, 07/15/18 4,000,000 5,039,656
Teck Resources
10.250%, 05/15/16 1,950,000 2,240,550
-----------
16,760,168
-----------
TELECOMMUNICATION SERVICES - 3.9%
AT&T
2.400%, 08/15/16 1,500,000 1,556,205
Telefonica Emisiones SAU
3.992%, 02/16/16 4,000,000 3,997,140
Verizon Maryland
8.000%, 10/15/29 2,980,000 3,657,539
Verizon New England
7.875%, 11/15/29 4,925,000 5,980,570
-----------
15,191,454
-----------
UTILITIES - 3.4%
Exelon Generation
6.200%, 10/01/17 4,000,000 4,670,528
MidAmerican Energy Holdings, Ser D
5.000%, 02/15/14 400,000 430,281
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - (CONTINUED)
--------------------------------------------------------------------------------
UTILITIES - (CONTINUED)
Oklahoma Gas & Electric
6.650%, 07/15/27 $2,500,000 $ 3,254,558
Sempra Energy
6.150%, 06/15/18 4,000,000 4,773,464
-----------
13,128,831
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $177,644,501) 190,901,854
-----------
--------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES - 11.8%
--------------------------------------------------------------------------------
Banc of America Mortgage Securities,
Ser 2003-7, Cl A2
4.750%, 09/25/18 2,865,464 2,956,660
Chase Mortgage Finance,
Ser 2003-S10, Cl A1
4.750%, 11/25/18 363,478 373,512
Chase Mortgage Finance,
Ser 2004-S1, Cl A3
5.500%, 02/25/19 1,562,200 1,625,482
Citicorp Mortgage Securities,
Ser 2003-10, Cl A1
4.500%, 11/25/18 3,707,344 3,797,651
CS First Boston Mortgage Securities,
Ser 2005-C1, Cl A4 (D)
5.014%, 02/15/38 5,000,000 5,432,220
DBUBS Mortgage Trust,
Ser 2011-LC1A, Cl A1 (A)
3.742%, 11/10/46 3,335,498 3,533,043
GE Capital Commercial Mortgage,
Ser 2004-C3, Cl A3 (D)
4.865%, 07/10/39 128,976 128,905
JPMorgan Chase Commercial Mortgage
Securities, Ser 2004-PNC1, Cl A4 (D)
5.530%, 06/12/41 5,000,000 5,406,255
Lehman Mortgage Trust,
Ser 2007-8, Cl 1A1
6.000%, 09/25/37 4,601,117 3,763,934
Morgan Stanley Capital I,
Ser 2003-T11, Cl A4
5.150%, 06/13/41 4,968,050 5,156,682
Morgan Stanley Dean Witter Capital I,
Ser 2001-TOP3, Cl A4
6.390%, 07/15/33 54,309 54,267
Residential Funding Mortgage Securities I,
Ser 2004-S3, Cl A1
4.750%, 03/25/19 1,958,311 2,002,880
Sequoia Mortgage Trust,
Ser 2012-1, Cl 2A1
3.474%, 01/25/42 2,500,000 2,500,000
The accompanying notes are an integral part of the financial statements.
86 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES - (CONTINUED)
--------------------------------------------------------------------------------
Wachovia Bank Commercial Mortgage
Trust, Ser 2005-C17, Cl A2
4.782%, 03/15/42 $ 123,345 $ 123,188
Wells Fargo Mortgage Backed Securities Trust,
Ser 2007-7, Cl A1
6.000%, 06/25/37 4,750,642 4,324,666
Ser 2004-2, Cl A1
5.000%, 01/25/19 2,331,527 2,404,541
Ser 2003-M, Cl A1(D)
4.692%, 12/25/33 1,173,481 1,181,435
Ser 2003-13, Cl A1
4.500%, 11/25/18 782,072 799,072
-----------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $44,136,419) 45,564,393
-----------
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS - 13.6%
--------------------------------------------------------------------------------
FHLMC Gold
6.000%, 06/01/13 112,420 115,827
6.000%, 09/01/13 134,502 143,617
6.000%, 09/01/17 806,821 865,852
6.000%, 11/01/17 290,460 309,356
5.500%, 03/01/17 231,462 248,494
5.000%, 10/01/20 464,968 501,709
4.500%, 05/01/19 638,412 683,252
4.500%, 07/01/19 2,028,653 2,171,140
4.500%, 04/01/20 248,573 266,032
4.500%, 07/01/23 1,901,599 2,026,248
FHLMC, ARM (D)
4.315%, 06/01/39 1,149,142 1,219,119
2.397%, 12/01/34 1,995,939 2,104,341
FHLMC, CMO REMIC Ser 1666, Cl J
6.250%, 01/15/24 1,635,079 1,796,032
FNMA
8.500%, 05/01/25 14,428 17,395
8.000%, 08/01/24 1,853 1,872
8.000%, 09/01/24 415 430
8.000%, 06/01/30 6,360 7,104
7.500%, 12/01/26 123,008 145,425
7.000%, 05/01/30 37,838 44,364
6.500%, 04/01/14 95,129 98,083
6.500%, 05/01/26 59,861 68,666
6.500%, 03/01/28 6,227 7,153
6.500%, 04/01/28 92,850 106,656
6.500%, 01/01/29 368,391 423,172
6.500%, 06/01/29 103,917 119,369
6.500%, 06/01/29 202,669 232,806
6.500%, 07/01/29 186,136 213,814
6.500%, 08/01/29 73,735 84,700
6.500%, 05/01/30 248,428 285,370
6.000%, 03/01/13 7,052 7,103
6.000%, 05/01/16 220,134 236,590
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS - (CONTINUED)
--------------------------------------------------------------------------------
6.000%, 10/01/16 $ 305,410 $ 328,240
6.000%, 11/01/17 629,300 676,342
6.000%, 12/01/27 8,797 9,793
6.000%, 12/01/27 1,083 1,206
6.000%, 12/01/27 30,168 33,580
6.000%, 07/01/28 281,132 312,932
6.000%, 08/01/28 70,406 78,172
6.000%, 10/01/28 114,279 127,384
6.000%, 10/01/28 33,004 36,789
6.000%, 12/01/28 344,465 383,967
6.000%, 12/01/28 208,307 232,683
6.000%, 12/01/28 143,908 160,411
5.500%, 01/01/17 150,909 164,296
5.500%, 02/01/17 83,650 91,122
5.500%, 12/01/17 879,468 949,294
5.500%, 03/01/20 4,419,145 4,822,202
5.000%, 11/01/17 1,017,127 1,100,360
5.000%, 12/01/17 344,256 372,427
5.000%, 02/01/18 1,060,635 1,147,428
5.000%, 11/01/18 197,547 213,713
5.000%, 11/01/33 4,435,188 4,795,460
5.000%, 03/01/34 1,460,040 1,578,640
4.500%, 04/01/18 5,996,553 6,441,061
4.000%, 05/01/25 1,437,224 1,524,224
3.500%, 10/01/26 6,851,056 7,217,823
FNMA, ARM (D)
2.403%, 01/01/36 3,390,205 3,579,003
GNMA
8.000%, 05/15/17 2,661 2,669
8.000%, 11/15/26 134,750 161,135
8.000%, 12/15/26 42,855 50,623
7.500%, 05/15/23 57,687 66,494
7.500%, 01/15/24 5,723 5,739
7.500%, 01/15/24 1,056 1,060
7.500%, 01/15/24 609 638
7.500%, 01/15/24 21,220 24,859
7.500%, 02/15/27 15,370 18,313
7.500%, 02/15/27 4,423 4,559
7.500%, 07/15/27 11,706 12,939
7.500%, 08/15/27 3,548 3,686
7.500%, 08/15/27 11,753 12,817
7.500%, 08/15/27 1,109 1,186
7.500%, 08/15/27 618 674
7.500%, 08/15/27 8,202 9,772
7.000%, 01/15/24 14,151 16,337
7.000%, 04/15/24 14,141 16,327
6.500%, 12/15/23 24,822 28,613
6.500%, 12/15/23 3,963 4,544
6.500%, 01/15/24 6,213 7,143
6.500%, 02/15/24 58,296 67,163
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 87
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS - (CONTINUED)
--------------------------------------------------------------------------------
6.500%, 04/15/26 $ 23,081 $ 26,815
6.500%, 01/15/29 152,318 178,058
6.500%, 05/15/29 377,123 439,262
6.500%, 06/15/29 30,028 35,102
6.000%, 08/15/28 71,536 81,215
6.000%, 09/15/28 50,609 57,540
6.000%, 09/15/28 133,706 152,020
-----------
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS
(Cost $49,669,865) 52,416,945
-----------
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 10.2%
--------------------------------------------------------------------------------
U.S. Treasury Notes
3.125%, 05/15/21 3,500,000 3,933,125
3.000%, 09/30/16 15,000,000 16,627,740
2.000%, 01/31/16 3,150,000 3,338,263
2.000%, 04/30/16 950,000 1,008,336
2.000%, 11/15/21 1,650,000 1,678,875
1.875%, 06/30/15 6,750,000 7,094,358
1.875%, 10/31/17 2,000,000 2,106,250
1.500%, 06/30/16 1,850,000 1,923,856
0.750%, 01/31/17 1,500,000 1,510,195
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $36,341,515) 39,220,998
-----------
--------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 6.6%
--------------------------------------------------------------------------------
Ally Master Owner Trust,
Ser 2011-1, Cl A2
2.150%, 01/15/16 2,500,000 2,542,867
Avis Budget Rental Car Funding AESOP,
Ser 2011-1A, Cl A (A)
1.850%, 11/20/14 1,400,000 1,404,010
BMW Vehicle Owner Trust,
Ser 2010-A, Cl A3
1.390%, 04/25/13 1,780,278 1,789,012
Centerpoint Energy Transition Bond,
Ser 2005-A, Cl A3
5.090%, 08/01/15 1,075,000 1,139,858
Hertz Vehicle Financing,
Ser 2011-1A, Cl A1 (A)
2.200%, 03/25/16 3,500,000 3,525,967
Oncor Electric Delivery Transition Bond,
Ser 2004-1, Cl A3
5.290%, 05/15/18 3,120,000 3,513,876
SLM Student Loan Trust,
Ser 2011-2, Cl A1 (D)
0.876%, 11/25/27 5,057,917 5,031,603
--------------------------------------------------------------------------------
Description Par/Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - (CONTINUED)
--------------------------------------------------------------------------------
Volkswagen Auto Loan Enhanced Trust,
Ser 2011-1, Cl A4
1.980%, 09/20/17 $2,425,000 $ 2,496,796
World Omni Auto Receivables Trust,
Ser 2011-A, Cl A4
1.910%, 04/15/16 3,800,000 3,884,225
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $24,593,427) 25,328,214
------------
--------------------------------------------------------------------------------
TAXABLE MUNICIPAL BONDS - 4.2%
--------------------------------------------------------------------------------
CALIFORNIA - 3.8%
California State, Public School
Improvements, Taxable, GO
6.200%, 10/01/19 2,750,000 3,246,320
Los Angeles, Department of
Water & Power Revenue,
Build America Bonds, Taxable, RB
6.574%, 07/01/45 2,900,000 3,958,413
Metropolitan Water District of Southern
California, Build America Bonds,
Taxable, RB
6.947%, 07/01/40 4,750,000 5,598,873
University of California Revenue,
Build America Bonds, Taxable, RB (D)
1.988%, 05/15/50 1,750,000 1,776,565
------------
14,580,171
------------
NEW JERSEY - 0.4%
New Jersey State, Turnpike Authority
Turnpike Revenue, Build America
Bonds, Taxable, RB
7.102%, 01/01/41 1,250,000 1,776,825
------------
1,776,825
------------
TOTAL TAXABLE MUNICIPAL BONDS
(Cost $13,866,222) 16,356,996
------------
--------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY - 3.1%
--------------------------------------------------------------------------------
Dreyfus Cash Management 11,972,973 11,972,973
------------
TOTAL REGISTERED INVESTMENT COMPANY
(Cost $11,972,973) 11,972,973
------------
TOTAL INVESTMENTS - 99.1%
(Cost $358,224,922) 381,762,373
------------
OTHER ASSETS & LIABILITIES, NET - 0.9% 3,408,160
------------
NET ASSETS - 100.0% $385,170,533
============
The accompanying notes are an integral part of the financial statements.
88 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
BOND FUND (CONCLUDED)
--------------------------------------------------------------------------------
(A) SECURITIES SOLD WITHIN THE TERMS OF A PRIVATE PLACEMENT MEMORANDUM, EXEMPT
FROM REGISTRATION UNDER SECTION 3A-4, 4(2) OR 144A OF THE SECURITIES ACT
OF 1933, AS AMENDED, AND MAY BE SOLD ONLY TO THE DEALERS IN THAT PROGRAM
OR OTHER "ACCREDITED INVESTORS". THE VALUE OF THESE SECURITIES AS OF
JANUARY 31, 2012 WAS $15,148,207 AND REPRESENTED 3.9% OF NET ASSETS.
(B) THE ISSUER IS IN DEFAULT OF CERTAIN DEBT COVENANTS. INCOME IS NOT BEING
ACCRUED. AS OF JANUARY 31, 2012, THE VALUE OF THIS SECURITY AMOUNTED TO
$1,090,000, WHICH REPRESENTS 0.3% OF NET ASSETS.
(C) SECURITY CONSIDERED ILLIQUID. THE TOTAL VALUE OF SUCH SECURITY AS OF
JANUARY 31, 2012 WAS $587,108 AND REPRESENTED 0.2% OF NET ASSETS.
(D) FLOATING RATE SECURITY. RATE DISCLOSED IS AS OF JANUARY 31, 2012.
ARM - ADJUSTABLE RATE MORTGAGE
CL - CLASS
CMO - COLLATERALIZED MORTGAGE OBLIGATION
FHLMC - FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA - FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA - GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO - GENERAL OBLIGATION
MTN - MEDIUM TERM NOTE
PLC - PUBLIC LIABILITY COMPANY
RB - REVENUE BOND
REMIC - REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER - SERIES
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ------------ ------------
Corporate Obligations $190,901,854 $ -- $190,901,854 $ --
Mortgage-Backed Securities 45,564,393 -- 45,564,393 --
U.S. Government Agency Mortgage-Backed
Obligations 52,416,945 -- 52,416,945 --
U.S. Treasury Obligation 39,220,998 -- 39,220,998 --
Asset-Backed Securities 25,328,214 -- 25,328,214 --
Municipal Bonds 16,356,996 -- 16,356,996 --
Registered Investment Company 11,972,973 11,972,973 -- --
------------ ------------ ------------ ------------
Total: $381,762,373 $ 11,972,973 $369,789,400 $ --
============ ============ ============ ============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 89
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - 97.5%
--------------------------------------------------------------------------------
CALIFORNIA - 97.5%
Alhambra, Unified School District,
Election 2004, Ser B, GO
5.250%, 08/01/23 (A) $1,150,000 $ 1,338,439
Atascadero Unified School District,
Election 2010, Ser A, GO
AGM Insured
5.250%, 08/01/25 (A) 345,000 404,364
Bay Area Toll Authority,
Ser B-2, RB,
LOC JPMorgan Chase Bank
0.030%, 04/01/47 (A) (C) 3,075,000 3,075,000
San Francisco Bay Area,
Ser B-1, RB,
LOC Bank of America N.A.
0.030%, 04/01/45 (A) (C) 4,620,000 4,620,000
Ser F-1, RB,
5.250%, 04/01/23 (A) 875,000 1,052,188
Berryessa, Union School District, GO,
National-RE Insured
5.375%, 03/01/12 460,000 461,725
Brentwood, Unified School District,
Election 1997, Ser B, GO,
National-RE FGIC Insured
4.850%, 08/01/14 (A) 410,000 410,922
Burlingame, Elementary School District,
GO, AGM Insured
5.250%, 07/15/16 795,000 938,649
California State, Department of
Transportation, Federal
Highway Grant,
Anticipation Bonds, Ser A, RB,
National-RE FGIC Insured
5.000%, 02/01/14 3,230,000 3,507,360
California State,
Department of Water Resources,
Central Valley Project, Ser Z,
ETM, RB, FGIC Insured
5.000%, 12/01/12 10,000 10,398
RB, National-RE FGIC Insured
5.000%, 12/01/12 1,050,000 1,091,664
Central Valley, RB, National-RE Insured
5.000%, 12/01/21 (A) 1,555,000 1,744,679
Power Supply Revenue, RB,
Ser A, AMBAC Insured,
Prerefunded @ 101
5.500%, 05/01/12 (A) (B) 1,225,000 1,253,248
Ser H, AGM Insured
5.000%, 05/01/21 (A) 1,485,000 1,762,517
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
5.000%, 05/01/22 (A) $1,645,000 $ 1,936,461
Subuser F5
5.000%, 05/01/22 (A) 865,000 1,018,261
RB, AGM Insured
5.500%, 12/01/14 10,000 11,408
RB, ETM, AGM Insured
5.500%, 12/01/14 1,415,000 1,619,864
Ser M, RB
5.000%, 05/01/14 3,000,000 3,308,010
California State, Economic Recovery,
Ser A, GO
5.250%, 07/01/12 935,000 954,354
5.250%, 07/01/14 1,635,000 1,814,621
Ser A, GO, ETM
5.250%, 07/01/14 200,000 223,200
Ser A, GO, National-RE Insured
3.800%, 07/01/12 450,000 456,633
5.250%, 07/01/13 345,000 368,318
5.000%, 07/01/15 (A) 1,250,000 1,376,700
Ser A, GO, State Guarenteed
5.250%, 07/01/21 (A) 2,000,000 2,482,960
California State,
Educational Facilities Authority,
Santa Clara University, RB
5.250%, 04/01/23 (A) 250,000 284,280
5.250%, 04/01/24 (A) 670,000 756,209
Stanford University,
Ser P, RB
5.250%, 12/01/13 900,000 980,100
California State, GO,
5.000%, 12/01/17 (A) 1,545,000 1,814,803
5.000%, 11/01/24 (A) 2,000,000 2,354,380
AMBAC Insured
5.000%, 11/01/17 1,000,000 1,202,300
Various Purposes
5.250%, 10/01/21 (A) 1,000,000 1,217,070
5.625%, 04/01/25 (A) 1,975,000 2,344,542
California State, Public Works Board,
Regents of the University of California
Ser G, RB
5.000%, 12/01/17 1,500,000 1,830,270
5.000%, 12/01/21 1,000,000 1,251,240
California State, University,
Systemwide Ser A, RB
5.250%, 11/01/22 (A) 255,000 299,717
5.000%, 11/01/25 (A) 730,000 843,982
5.000%, 11/01/26 (A) 1,500,000 1,723,515
Campbell, Unified High School District, GO
5.250%, 08/01/25 (A) 695,000 825,924
The accompanying notes are an integral part of the financial statements.
90 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
Cerritos Community College District,
Election 2004, Ser C, GO
5.250%, 08/01/24 (A) $ 450,000 $ 529,052
5.250%, 08/01/25 (A) 750,000 875,655
Chaffey, Unified High School
District, GO, National-RE FGIC Insured
5.000%, 08/01/15 1,000,000 1,139,250
Citrus Community College
District, Election 2004,
Ser C, GO
5.250%, 06/01/25 (A) 505,000 590,441
Claremont, Unified School District, GO,
5.000%, 08/01/28 (A) 3,050,000 3,516,772
Coast Community College, GO,
National-RE Insured
5.250%, 08/01/15 1,030,000 1,176,136
Corona-Norca Unified School District,
Election 2006,
Ser A, GO, AGM Insured
5.000%, 08/01/17 505,000 599,349
Ser E, GO
5.000%, 08/01/16 920,000 1,071,202
Desert Sands Unified School District,
Election 2001, GO
5.750%, 08/01/19 (A) 700,000 874,111
5.250%, 08/01/20 (A) 610,000 738,027
5.250%, 08/01/22 (A) 650,000 772,395
5.500%, 08/01/25 (A) 300,000 354,432
Dublin, Unified School District,
Election 2004, Ser A, GO,
AGM Insured
5.000%, 08/01/21 (A) 720,000 763,056
5.000%, 08/01/26 (A) 1,580,000 1,636,169
El Camino, Community
College, GO, AGM Insured
5.000%, 08/01/16 (A) 1,000,000 1,145,570
Fallbrook, Unified High School District, GO,
National-RE FGIC Insured
5.375%, 09/01/12 250,000 257,437
Fontana, Unified School District, Ser A, GO,
AGM Insured
5.250%, 08/01/19 (A) 980,000 1,074,962
Gilroy, Unified School District,
Election 2008, Ser A, GO
5.250%, 08/01/22 (A) 1,800,000 2,143,152
6.000%, 08/01/25 (A) 1,400,000 1,721,160
Grant, Joint Union High School District,
Election 2006, GO, AGM Insured
5.000%, 08/01/21 (A) 975,000 1,119,651
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
Hayward, Unified School District, GO
5.000%, 08/01/25 (A) $1,000,000 $ 1,062,740
Imperial Irrigation District,
Ser B, RB,
5.000%, 11/01/26 (A) 1,000,000 1,149,470
Ser C, RB,
5.000%, 11/01/26 (A) 1,600,000 1,843,120
Irvine Ranch Water District, Ser B, GO
LOC Bank of America NA
0.050%, 10/01/41 (A) (C) 3,500,000 3,500,000
Lodi, Unified School District,
Election 2002, GO, AGM Insured
5.250%, 08/01/22 (A) 1,000,000 1,054,910
Long Beach, Community College District,
Election 2008, Ser A, GO
5.000%, 06/01/24 (A) 465,000 527,677
Long Beach, Harbor Revenue, Ser B, RB,
5.000%, 05/15/24 (A) 1,440,000 1,705,421
Long Beach, Unified School District,
Election of 2008, Ser A, GO
4.000%, 08/01/14 180,000 194,105
5.250%, 08/01/24 (A) 200,000 241,014
5.250%, 08/01/25 (A) 1,615,000 1,940,019
Ser B, GO,
5.250%, 08/01/24 (A) 1,045,000 1,259,298
Los Angeles County Public Works
Financing Authority Flood Control
District, Ser A, RB, National-RE Insured
5.000%, 03/01/12 600,000 602,232
Los Angeles County, Metropolitan
Transportation Authority,
Sales Tax Project,
Ser A, AGM Insured
5.000%, 07/01/18 (A) 1,280,000 1,362,765
Sales Tax Revenue,
Proposition C, Ser A, RB,
National-RE Insured
5.250%, 07/01/13 200,000 213,752
Los Angeles County,
Public Works Financing Authority,
Regional Park & Open Space,
Special Assessment,
AGM Insured
5.000%, 10/01/12 1,010,000 1,041,663
5.000%, 10/01/15 230,000 262,543
National-RE Insured
5.000%, 10/01/12 300,000 309,387
Los Angeles County, Sanitation
Districts Financing Authority,
Capital Project, Ser A, RB,
AGM Insured
5.000%, 10/01/21 (A) 245,000 262,620
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 91
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
Los Angeles County, Sanitation
Equipment, Ser A, RB,
AGM Insured
5.000%, 02/01/14 (A) $ 750,000 $ 782,595
Los Angeles Harbor Department,
Ser A, RB
5.000%, 08/01/20 (A) 2,000,000 2,380,400
5.250%, 08/01/21 (A) 350,000 420,707
Los Angeles,
Ser A, GO,
National-RE Insured
5.000%, 09/01/12 (A) 3,500,000 3,595,935
Ser B, GO,
AGM Insured
5.000%, 09/01/16 (A) 1,000,000 1,139,090
Los Angeles, Community College District,
Election 2001, Ser A, GO,
National-RE FGIC Insured
5.000%, 08/01/23 (A) 500,000 565,445
Election 2003, Ser E, GO,
AGM Insured
5.000%, 08/01/17 (A) 1,000,000 1,168,170
5.000%, 08/01/23 (A) 1,360,000 1,507,356
Election 2008, Ser A, GO
5.500%, 08/01/22 (A) 1,500,000 1,858,995
5.500%, 08/01/24 (A) 1,000,000 1,204,630
Los Angeles, Department of Airports, RB
International Airport,
Ser A
5.000%, 05/15/23 (A) 500,000 602,110
Ser C
5.250%, 05/15/21 (A) 1,000,000 1,156,430
Ser D
5.000%, 05/15/24 (A) 830,000 989,144
Ser A
5.250%, 05/15/22 (A) 500,000 606,970
Los Angeles, Department of Water & Power,
Ser A, RB,
5.000%, 07/01/18 1,000,000 1,227,570
5.000%, 07/01/22 (A) 1,860,000 2,340,122
Ser A, Sub Ser A-2, RB,
National-RE Insured
5.000%, 07/01/19 (A) 2,500,000 2,657,250
Ser A-2, RB,
AGM Insured
5.000%, 07/01/25 (A) 2,000,000 2,196,860
Ser B, RB,
National-RE Insured
5.000%, 07/01/13 430,000 458,182
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
Sub Ser A-2, RB,
5.000%, 07/01/15 $ 575,000 $ 656,725
Los Angeles, Unified School District, GO,
Election 1997, Ser E,
National-RE Insured,
Prerefunded @ 100
5.500%, 07/01/12 (A) (B) 1,390,000 1,420,260
National-RE Insured,
5.500%, 07/01/12 1,855,000 1,895,457
Ser B
AGM Insured
5.000%, 07/01/16 1,950,000 2,298,680
Ser D
5.250%, 07/01/24 (A) 1,000,000 1,180,520
Ser I
5.000%, 07/01/25 (A) 1,750,000 2,021,215
Los Angeles, Waste Water System, RB,
AGM Insured
5.000%, 06/01/22 (A) 920,000 972,311
Ser C, National-RE Insured
5.375%, 06/01/12 1,245,000 1,266,302
Sub Ser A,
National-RE Insured
5.000%, 06/01/26 (A) 600,000 631,896
Metropolitan Water District of
Southern California Ser A, RB
5.000%, 01/01/26 (A) 500,000 578,875
Modesto Irrigation District, COP,
Capital Improvements, Ser A
5.500%, 10/01/25 (A) 1,500,000 1,681,440
Mount Diablo Unified School District, GO,
5.000%, 08/01/26 (A) 300,000 350,061
Election 2002, Ser B
5.000%, 07/01/20 1,000,000 1,208,790
North Orange County, Community
College District,
GO, National-RE Insured
5.000%, 08/01/15 1,070,000 1,226,552
5.000%, 08/01/23 (A) 2,880,000 3,215,664
Northern California Transmission
Agency Revenue, California-Oregon
Transmission Project,
Ser A, RB
5.000%, 05/01/22 (A) 1,060,000 1,211,156
Norwalk, La Mirada Unified School
District, Election 2002, Ser A, GO,
FGIC Insured, Prerefunded @ 100
5.000%, 08/01/13 (A) (B) 1,800,000 1,926,342
The accompanying notes are an integral part of the financial statements.
92 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
Orange County, Sanitation District,
Ser B, COP, AGM Insured
5.000%, 02/01/17 $ 450,000 $ 533,615
5.000%, 02/01/23 (A) 2,615,000 2,948,962
5.000%, 02/01/25 (A) 1,200,000 1,349,628
Orange County, Water District,
Ser B, COP, National-RE Insured
5.000%, 08/15/24 (A) 750,000 832,980
Pajaro Valley Unified School
District, GO, AGM Insured
5.250%, 08/01/21 (A) 500,000 571,870
Paramount, Unified School
District, GO, AGM Insured
5.000%, 09/01/15 1,000,000 1,119,610
Petaluma City, Elementary School
District, GO
4.000%, 08/01/15 705,000 773,878
Port of Oakland, RB,
Ser B, National-RE Insured
5.000%, 11/01/18 (A) 1,250,000 1,409,075
Ser M, FGIC Insured,
Prerefunded @ 100
5.250%, 11/01/12 (A) (B) 1,000,000 1,037,540
Redding, Electric System Revenue,
Ser A, COP, AGM Insured
5.000%, 06/01/22 (A) 1,500,000 1,696,590
5.000%, 06/01/24 (A) 1,110,000 1,243,833
Redwood City, Elementary School
District, GO, National-RE FGIC Insured
5.500%, 08/01/14 960,000 1,050,950
Riverside, Community College,
GO, AGM Insured
5.000%, 08/01/19 (A) 1,750,000 1,978,200
Sacramento, Municipal Utility District, RB
Electric Power & Light Revenues,
Ser R, National-RE Insured
5.000%, 08/15/16 300,000 320,211
5.000%, 08/15/22 (A) 325,000 344,630
Prerefunded @ 100
5.000%, 08/15/13 (A) (B) 700,000 749,847
5.000%, 08/15/13 (A) (B) 740,000 792,695
Ser U, AGM Insured
5.000%, 08/15/24 (A) 250,000 288,108
Sacramento, Municipal Utility District, RB,
Electric Power & Light Revenues,
Ser R, National-RE Insured
5.000%, 08/15/15 1,790,000 2,034,603
Ser U, AGM Insured
5.000%, 08/15/23 (A) 1,610,000 1,864,879
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
Sacramento, Unified School District, GO
5.000%, 07/01/19 $1,115,000 $ 1,366,957
San Bernardino County, Community
College District, GO,
AGM Insured
5.000%, 08/01/15 1,000,000 1,146,690
Election 2002, Ser A
6.250%, 08/01/24 (A) 1,055,000 1,296,490
San Diego County, Regional
Transportation Commission,
Limited Tax, Ser B, RB,
SPA JPMorgan Chase Bank
0.040%, 04/01/38 (A) (C) 3,800,000 3,800,000
San Diego County, Water Authority, COP,
Ser A, AGM Insured
5.000%, 05/01/20 (A) 1,000,000 1,155,550
Water Revenues, Ser 2008A,
National-RE FGIC Insured
5.250%, 05/01/16 1,310,000 1,532,438
Water Revenues, Ser A,
AGM Insured
5.000%, 05/01/26 (A) 3,520,000 3,773,123
National-RE FGIC Insured
5.000%, 05/01/12 775,000 783,773
San Diego, Public Facilities
Financing Authority,
RB, National-RE Insured
5.000%, 08/01/14 (A) 1,100,000 1,125,751
Sewer Authority, Ser B, RB
5.500%, 05/15/23 (A) 3,210,000 4,007,300
Water Authority, Ser B, RB
5.000%, 08/01/21 (A) 1,000,000 1,212,480
San Francisco City & County,
Academy Sciences
Improvement, Ser E, GO,
National-RE Insured
5.000%, 06/15/24 (A) 2,040,000 2,116,643
Airport Commission,
International Airport,
Second Series, Issue 32F, RB,
National-RE FGIC Insured
5.000%, 05/01/22 (A) 2,000,000 2,233,420
International Airport, Second Series,
Issue 32F, RB, National-RE FGIC Insured
5.250%, 05/01/19 2,100,000 2,583,546
Earthquake Safety,
Ser E, GO
5.000%, 06/15/26 (A) 2,815,000 3,317,646
General Hospital,
Ser A, GO
5.250%, 06/15/24 (A) 250,000 292,868
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 93
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
Public Utilities Commission,
Water Revenue,
Ser A, RB, AGM Insured,
5.000%, 11/01/23 (A) $1,000,000 $ 1,120,170
Ser B, RB, National-RE Insured
5.000%, 11/01/15 (A) 1,250,000 1,292,312
Ser C, RB
5.000%, 11/01/12 525,000 543,695
Ser R1, GO, REF-SER R1
5.000%, 06/15/24 (A) 375,000 463,909
Unified School District, Prop A,
Ser B, GO, Election 2003,
AGM Insured
5.000%, 06/15/20 (A) 1,895,000 1,963,504
5.000%, 06/15/22 (A) 975,000 1,007,984
Ser B, GO, Election 2006
5.250%, 06/15/23 (A) 895,000 1,072,282
San Francisco, Bay Area Rapid Transit,
Sales Tax Revenue, RB, AMBAC Insured
5.250%, 07/01/14 (A) 300,000 301,188
San Francisco, Community College
District, Election 2001, Ser B, GO,
National-RE Insured
5.000%, 06/15/20 (A) 2,085,000 2,160,373
San Joaquin County, Delta Community
College District, Election 2004,
Ser A, GO, AGM Insured
4.500%, 08/01/15 1,000,000 1,114,420
San Jose, Financing Authority, Lease
Revenue, Ser B, RB, AMBAC Insured
4.000%, 06/01/12 250,000 252,255
San Juan, Unified School District,
GO, Election 2002, AGM Insured
5.000%, 08/01/26 (A) 1,560,000 1,792,424
Ser A, GO, Election 2002,
National-RE Insured
5.000%, 08/01/25 (A) 2,200,000 2,315,830
San Lorenzo, Unified School
District, Election 2008, Ser A, GO,
Assured Guaranty Insured
5.000%, 08/01/22 (A) 325,000 368,804
San Mateo, County, Transit District,
Sales Tax Revenue, Ser A, RB,
National-RE Insured
5.250%, 06/01/16 2,150,000 2,504,255
San Mateo, Joint Powers Financing
Authority, Lease Revenue,
Capital Projects, Ser A, RB
5.250%, 07/15/24 (A) 1,000,000 1,183,690
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
San Rafael, Elementary School District, GO,
5.000%, 08/01/24 (A) $ 325,000 $ 387,836
5.000%, 08/01/27 (A) 875,000 1,027,346
San Ramon Valley, Unified School District,
Election 2002, GO, AGM Insured
5.250%, 08/01/18 (A) 1,290,000 1,428,107
Santa Clara, Valley Transportation
Authority, Measure A, Ser A, RB,
AMBAC Insured
5.000%, 04/01/25 (A) 400,000 453,096
Santa Maria, Joint Unified High School
District, Ser A, ETM, GO, AGM Insured
5.500%, 08/01/15 510,000 578,636
Santa Rosa, High School District, GO,
5.000%, 08/01/24 (A) 1,090,000 1,264,803
Shasta-Tehama-Trinity, Joint Community
College District, GO
5.000%, 08/01/26 (A) 560,000 638,036
5.000%, 08/01/27 (A) 500,000 567,055
Solano County, Community College,
Election 2002, Ser A, GO,
National-RE Insured,
Prerefunded @ 100
5.000%, 08/01/13 (A) (B) 1,865,000 1,994,450
Southern California, Public Power Authority,
Power Project Revenue,
Canyon Power, Ser A, RB,
5.000%, 07/01/25 (A) 2,950,000 3,492,594
Transmission Project Revenue,
Sub Southern
Transmission, Ser A, RB
5.000%, 07/01/23 (A) 1,200,000 1,392,600
Stockton, Unified School District,
Election 2005, GO, AGM Insured
5.000%, 08/01/16 645,000 736,126
Torrance, Unified School District,
Election 2008, Measure Z, GO
5.500%, 08/01/25 (A) 1,000,000 1,188,080
University of California,
Limited Project, Ser A, RB,
National-RE Insured,
Prerefunded @ 101
5.000%, 05/15/12 (A) (B) 590,000 603,824
Ser A, RB,
AMBAC Insured
5.125%, 05/15/18 (A) 705,000 745,432
5.000%, 05/15/22 (A) 1,500,000 1,588,020
5.000%, 05/15/25 (A) 600,000 630,600
The accompanying notes are an integral part of the financial statements.
94 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND (CONCLUDED)
--------------------------------------------------------------------------------
Description Par/Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
Ser B, RB,
AMBAC Insured
5.250%, 05/15/23 (A) $1,500,000 $ 1,590,825
Ser O, RB
5.500%, 05/15/22 (A) 2,000,000 2,452,420
------------
TOTAL MUNICIPAL BONDS
(Cost $227,289,286) 243,104,557
------------
--------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY - 1.2%
--------------------------------------------------------------------------------
BlackRock Liquidity Funds,
California Money Fund 3,016,086 3,016,086
------------
TOTAL REGISTERED INVESTMENT COMPANY
(Cost $3,016,086) 3,016,086
------------
TOTAL INVESTMENTS - 98.7%
(Cost $230,305,372) 246,120,643
------------
OTHER ASSETS & LIABILITIES, NET - 1.3% 3,129,290
------------
NET ASSETS - 100.0% $249,249,933
============
--------------------------------------------------------------------------------
(A) THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY.
(B) PREREFUNDED SECURITY - THE MATURITY DATE SHOWN IS THE PREREFUNDED DATE.
(C) FLOATING RATE SECURITY. RATE DISCLOSED IS AS OF JANUARY 31, 2012.
AGM - ASSURED GUARANTY MUNICIPAL CORPORATION
AMBAC - AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
COP - CERTIFICATES OF PARTICIPATION
ETM - ESCROWED TO MATURITY
FGIC - FINANCIAL GUARANTY INSURANCE CORPORATION
GO - GENERAL OBLIGATION
LOC - LETTER OF CREDIT
NA - NATIONAL ASSOCIATION
RB - REVENUE BOND
SER - SERIES
SPA - STANDBY PURCHASE AGREEMENT
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ------------ ------------
Municipal Bonds $243,104,557 $ -- $243,104,557 $ --
Registered Investment Company 3,016,086 3,016,086 -- --
------------ ------------ ------------ ------------
Total: $246,120,643 $ 3,016,086 $243,104,557 $ --
============ ============ ============ ============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 95
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
NATIONAL INTERMEDIATE TAX-FREE BOND FUND
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - 98.3%
--------------------------------------------------------------------------------
ALASKA - 3.9%
Alaska State, International
Airports System,
Ser B, RB, AMBAC Insured,
Prerefunded @ 100 (B)
5.750%, 10/01/12 $ 150,000 $ 155,497
Ser D, RB, National-RE Insured
5.000%, 10/01/22 (A) 2,000,000 2,196,440
Anchorage, City of Anchorage Schools,
Ser B, GO,
5.000%, 08/01/24 (A) 1,000,000 1,168,590
National-RE FGIC Insured
5.000%, 09/01/17 545,000 660,665
-----------
4,181,192
-----------
ARIZONA - 2.0%
Phoenix, GO, Ser A
6.250%, 07/01/17 1,000,000 1,277,670
Tucson, Water Revenue, RB
5.000%, 07/01/21 (A) 765,000 911,306
-----------
2,188,976
-----------
CALIFORNIA - 19.4%
California State, Department of
Transportation, Federal
Highway Grant,
Anticipation Bonds, Ser A, RB,
National-RE FGIC Insured
5.000%, 02/01/14 1,000,000 1,085,870
California State, Department of
Water Resources,
Central Valley Project, Ser X, RB,
National-RE FGIC Insured
5.500%, 12/01/15 625,000 735,512
Central Valley Project, Ser Z, RB,
National-RE FGIC Insured
5.000%, 12/01/12 500,000 519,840
Power Supply Revenue,
RB, Ser H, AGM Insured
5.000%, 05/01/22 (A) 1,000,000 1,177,180
California State, GO,
Various Purposes
5.250%, 10/01/21 (A) 1,000,000 1,217,070
5.625%, 04/01/25 (A) 1,250,000 1,483,888
Chico, Unified School District,
Ser B, GO, AGM Insured
5.000%, 08/01/25 (A) 1,625,000 1,828,759
Contra Costa, Water District,
Ser E, RB, AMBAC Insured
6.250%, 10/01/12 190,000 197,615
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
Elsinore Valley, Municipal Water District,
COP, National-RE FGIC Insured
5.375%, 07/01/18 $ 750,000 $ 893,130
Long Beach, Unified School District,
Election of 2008, Ser A, GO
5.250%, 08/01/24 (A) 525,000 632,662
5.250%, 08/01/25 (A) 1,000,000 1,201,250
Los Angeles, Ser A, GO, National-RE Insured
5.250%, 09/01/12 675,000 694,710
Los Angeles, Unified School
District, GO, Ser I
5.000%, 07/01/25 (A) 1,000,000 1,154,980
Redding, Electric System Revenue,
Ser A, COP, AGM Insured
5.000%, 06/01/22 (A) 1,000,000 1,131,060
Sacramento Municipal Utility
District, Ser R, RB, National-RE Insured
5.000%, 08/15/23 (A) 500,000 529,960
San Bernardino County, Community
College District, GO,
Election 2002, Ser A
6.250%, 08/01/24 (A) 850,000 1,044,565
San Francisco City & County,
Airport Commission,
International Airport, Second Series,
Issue 32F, RB, National-RE FGIC Insured
5.250%, 05/01/19 1,000,000 1,230,260
San Jose, Redevelopment Agency, TA,
ETM, National-RE Insured,
6.000%, 08/01/15 430,000 510,836
National-RE Insured
6.000%, 08/01/15 775,000 846,207
San Ramon Valley, Unified School
District, Election 2002,
GO, AGM Insured
5.250%, 08/01/18 (A) 1,670,000 1,848,790
Torrance, Unified School District,
Election of 2008, Measure Y, GO
5.500%, 08/01/25 (A) 750,000 891,060
-----------
20,855,204
-----------
COLORADO - 0.6%
Regional Transportation District,
Sales Tax, Ser B, RB, AMBAC Insured
5.250%, 11/01/12 625,000 648,275
-----------
The accompanying notes are an integral part of the financial statements.
96 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
NATIONAL INTERMEDIATE TAX-FREE BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CONNECTICUT - 2.8%
Connecticut State,
Ser C, GO
5.000%, 06/01/14 $1,600,000 $ 1,767,200
Ser D, GO
5.000%, 11/01/19 1,000,000 1,259,140
-----------
3,026,340
-----------
FLORIDA - 0.8%
Jacksonville, Local Government,
Sales Tax Revenue, RB,
National-RE FGIC Insured
5.500%, 10/01/13 835,000 905,866
-----------
GEORGIA - 1.3%
Atlanta, Water & Wastewater Revenue,
Ser A, RB, National-RE FGIC Insured
5.500%, 11/01/13 1,000,000 1,083,620
Georgia State, Road & Tollway Authority,
Reimbursement Revenue,
Ser A, RB, AGM Insured
5.000%, 06/01/14 270,000 295,439
-----------
1,379,059
-----------
HAWAII - 6.7%
Hawaii State
Highway Revenue,
Ser B, RB, AGM Insured
5.000%, 07/01/15 1,025,000 1,171,062
Ser EA, GO
5.000%, 12/01/19 1,000,000 1,258,410
Honolulu City and County,
Ser A, GO
5.000%, 04/01/25 (A) 1,000,000 1,181,640
Ser A, GO, National-RE Insured
5.000%, 07/01/25 (A) 1,895,000 2,061,362
University of Hawaii Revenue,
Ser A, RB,
3.000%, 10/01/13 300,000 312,441
5.500%, 10/01/22 (A) 500,000 620,110
5.500%, 10/01/23 (A) 500,000 615,335
-----------
7,220,360
-----------
IDAHO - 4.7%
Idaho State, Housing & Finance Association,
Grant & Revenue Anticipation,
Federal Highway Trust, RB,
National-RE Insured
5.000%, 07/15/15 1,000,000 1,127,680
Ser A, RB
5.000%, 07/15/22 (A) 580,000 680,578
5.250%, 07/15/24 (A) 1,750,000 2,055,760
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
IDAHO - (CONTINUED)
Twin Falls County, School
District No. 411, GO,
National-RE Insured
5.000%, 09/15/16 $1,000,000 $ 1,142,560
-----------
5,006,578
-----------
ILLINOIS - 7.6%
Chicago,
Ser A, GO, AGM Insured
5.000%, 01/01/23 (A) 1,075,000 1,167,407
Ser C, GO
5.000%, 01/01/23 (A) 1,285,000 1,464,951
Chicago, Board of Education,
Dedicated Revenues,
Ser B, GO, AMBAC Insured
5.000%, 12/01/23 (A) 1,375,000 1,520,984
Chicago, O'Hare International
Airport Revenue,
Ser B, RB, AGM Insured
5.000%, 01/01/19 (A) 1,705,000 1,937,971
Chicago, Project & Refunding, Ser A, GO
5.250%, 01/01/21 (A) 1,020,000 1,164,197
Illinois State, GO, National-RE Insured
5.000%, 08/01/26 (A) 900,000 902,529
-----------
8,158,039
-----------
MASSACHUSETTS - 6.1%
Massachusetts State,
Consolidated Loan, Ser D, GO,
5.500%, 11/01/14 220,000 249,621
School Building Authority,
Sales Tax Revenue,
Ser A, RB, AGM Insured
5.000%, 08/15/14 3,175,000 3,528,251
Water Resources Authority,
Ser A, RB, National-RE Insured
5.250%, 08/01/15 1,055,000 1,218,841
5.250%, 08/01/16 1,310,000 1,564,926
-----------
6,561,639
-----------
NEVADA - 6.4%
Clark County,
Limited Tax-Bond Bank, GO
5.000%, 06/01/25 (A) 2,440,000 2,750,734
School District,
Ser A, GO, AGM Insured
5.500%, 06/15/16 (A) 1,250,000 1,337,637
Las Vegas, Valley Water District,
Refunding & Water Improvement,
Ser A, GO, National-RE FGIC Insured
5.250%, 06/01/18 (A) 1,305,000 1,359,144
Las Vegas, Water District Revenue,
Ser B, GO, National-RE Insured
5.250%, 12/01/12 (A) 300,000 312,447
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 97
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
NATIONAL INTERMEDIATE TAX-FREE BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
NEVADA - (CONTINUED)
Nevada State,
Capital Improvements,
Ser A, GO, National-RE Insured,
Prerefunded @ 100(B)
5.000%, 05/01/12 $ 500,000 $ 505,925
Ser B, GO, AGM Insured
5.000%, 08/01/24 (A) 525,000 563,136
-----------
6,829,023
-----------
NEW JERSEY - 3.3%
Cape May County, General
Improvement, GO
2.500%, 07/15/12 100,000 101,039
New Jersey State,
Ser L, GO, AMBAC Insured
5.250%, 07/15/16 1,265,000 1,505,110
Transportation Trust Fund
Authority, Ser A, RB
5.250%, 12/15/21 655,000 811,617
Transportation Trust Fund Authority,
Ser C, ETM, RB, National-RE Insured
5.250%, 06/15/15 1,000,000 1,156,190
-----------
3,573,956
-----------
NEW YORK - 6.0%
New York City, Transitional Finance
Authority Subordinated Future Tax Secured
RB, Prerefunded, Series B
5.000%, 11/01/13 285,000 308,079
RB, Unrefunded
5.000%, 11/01/13 640,000 691,942
Ser C, RB,
5.000%, 11/01/17 250,000 304,438
New York State,
Ser C-1, GO, AGM Insured
5.000%, 10/01/24 (A) 1,055,000 1,226,649
Ser M, GO, AGM Insured
5.000%, 04/01/15 1,000,000 1,134,870
New York State, Thruway Authority,
Highway and Bridge Trust Fund,
Ser B, RB, AGM Insured
5.000%, 04/01/12 200,000 201,542
Personal Income Tax Revenue
Transportation, Ser A, RB
5.000%, 03/15/12 175,000 175,996
Second Highway and Bridge
Trust Fund, Ser A, RB, National-RE
Insured, Prerefunded @ 100(B)
5.000%, 04/01/14 1,075,000 1,177,620
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
NEW YORK - (CONTINUED)
Second Highway and Bridge
Trust Fund, Ser B, RB
5.000%, 04/01/21 (A) $1,025,000 $ 1,217,895
-----------
6,439,031
-----------
NORTH CAROLINA - 1.2%
North Carolina State, Public
Improvement, Ser A, GO,
5.000%, 03/01/23 (A) 1,000,000 1,043,540
North Carolina State, Highway, GO
5.000%, 05/01/15 (A) 250,000 275,847
-----------
1,319,387
-----------
OHIO - 0.2%
Ohio State, Common Schools
Facilities, Ser B, GO
4.300%, 09/15/12 200,000 205,088
-----------
OREGON - 5.9%
Chemeketa, Community College
District, ETM, GO, FGIC Insured
5.500%, 06/01/12 1,060,000 1,077,681
Portland, Sewer System Revenue,
First Lien, Ser A, RB, AGM Insured
5.000%, 06/15/14 1,000,000 1,105,990
First Lien, Ser A, RB,
National-RE Insured
5.000%, 06/01/14 490,000 541,083
Second Lien, Ser B, RB, AGM Insured
5.000%, 06/15/23 (A) 1,160,000 1,347,456
Washington County, School
District Authority No. 15,
GO, AGM School Board
Guarantee Insured
5.000%, 06/15/14 1,000,000 1,098,510
Yamill County, School District
Authority No. 29J, GO,
National-RE FGIC Insured
5.250%, 06/15/16 1,000,000 1,183,960
-----------
6,354,680
-----------
PENNSYLVANIA - 0.5%
Pennsylvania State, Refunding & Projects,
First Ser, GO, National-RE Insured
5.250%, 02/01/14 500,000 548,125
-----------
TEXAS - 9.4%
Denton, Utilities System Revenue, RB,
National-RE Insured
5.250%, 12/01/23 (A) 1,065,000 1,137,516
The accompanying notes are an integral part of the financial statements.
98 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
NATIONAL INTERMEDIATE TAX-FREE BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
TEXAS - (CONTINUED)
Houston, Texas Utility System Revenue,
Combined First Lien, Ser A, RB,
National-RE Insured
5.250%, 05/15/14 $ 545,000 $ 602,514
First Lien, Ser A, RB, AGM Insured
5.250%, 11/15/17 1,250,000 1,537,513
Lamar Consolidated Independent
School District, Schoolhouse,
GO, PSF Insured
5.000%, 02/15/17 800,000 963,240
Lower Colorado River Authority,
RB
5.000%, 05/15/21 (A) 1,035,000 1,220,617
5.000%, 05/15/22 (A) 835,000 970,771
5.000%, 05/15/23 (A) 95,000 109,763
RB, Prerefunded @ 100 (B)
5.000%, 05/15/19 5,000 6,333
North East Independent School
District, Ser A, GO, PSF Insured
5.000%, 08/01/17 500,000 607,860
San Antonio, Water Revenue,
RB, AGM Insured,
5.500%, 05/15/15 (A) 445,000 451,404
RB, AGM Insured, Prerefunded @ 100, (B)
5.500%, 05/15/12 55,000 55,833
RB, National-RE FGIC Insured
5.000%, 05/15/17 1,000,000 1,205,910
Texas State, University Systems
Financing Revenue, RB
5.250%, 03/15/21 (A) 1,000,000 1,212,510
-----------
10,081,784
-----------
UTAH - 1.6%
Utah State, Board of Regents
Auxilliary & Campus Facilities
Revenue, Ser A, RB,
National-RE Insured
5.000%, 04/01/17 (A) 1,500,000 1,670,325
-----------
WASHINGTON - 7.9%
Energy Northwest, Electric Revenue,
Project No. 1,
Ser A, RB, AGM Insured
5.500%, 07/01/14 (A) 400,000 408,724
Project No. 1, Ser B, RB,
National-RE Insured
6.000%, 07/01/17 (A) 1,805,000 1,848,609
RB, AMBAC Insured
6.000%, 07/01/18 (A) 510,000 521,868
RB, AMBAC Insured,
Prerefunded @ 100, (B)
6.000%, 07/01/12 525,000 537,505
--------------------------------------------------------------------------------
Description Par/Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
WASHINGTON - (CONTINUED)
King & Pierce County School
District No. 408, GO
5.000%, 12/01/21 $1,000,000 $ 1,242,930
Pierce County, GO, AMBAC Insured
5.125%, 08/01/16 (A) 1,375,000 1,575,943
Seattle, Municipal Light & Power
Revenue, RB, AGM Insured,
5.000%, 08/01/17 (A) 1,000,000 1,112,210
Washington State, Ser A, GO,
5.000%, 07/01/19 (A) 1,000,000 1,192,140
------------
8,439,929
------------
TOTAL MUNICIPAL BONDS
(Cost $97,769,797) 105,592,856
------------
--------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY- 0.3%
--------------------------------------------------------------------------------
Fidelity Institutional
Tax-Exempt Portfolio 392,399 392,399
------------
TOTAL REGISTERED INVESTMENT COMPANY
(Cost $392,399) 392,399
------------
TOTAL INVESTMENTS - 98.6%
(Cost $98,162,196) 105,985,255
------------
OTHER ASSETS & LIABILITIES, NET - 1.4% 1,451,477
------------
NET ASSETS - 100.0% $107,436,732
============
--------------------------------------------------------------------------------
(A) THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY DATE.
(B) PREREFUNDED SECURITY - THE MATURITY DATE SHOWN IS THE PREREFUNDED DATE.
AGM - ASSURED GUARANTY MUNICIPAL CORPORATION
AMBAC - AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
COP - CERTIFICATES OF PARTICIPATION
ETM - ESCROWED TO MATURITY
FGIC - FINANCIAL GUARANTY INSURANCE CORPORATION
GO - GENERAL OBLIGATION
PSF - PRIORITY SOLIDARITY FUND
RB - REVENUE BOND
SER - SERIES
TA - TAX ALLOCATION
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 99
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
NATIONAL INTERMEDIATE TAX-FREE BOND FUND (CONCLUDED)
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ----------- ------------
Municipal Bonds $105,592,856 $ -- $105,592,856 $ --
Registered Investment Company 392,399 392,399 -- --
------------ ------------ ----------- ------------
Total: $105,985,255 $ 392,399 $105,592,856 $ --
============ ============ ============ ============
The accompanying notes are an integral part of the financial statements.
100 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
SHORT TERM BOND FUND
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - 59.6%
--------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 7.4%
Comcast
5.300%, 01/15/14 $1,150,000 $ 1,241,783
DIRECTV Holdings LLC/DIRECTV Financing
7.625%, 05/15/16 441,000 464,704
Georgia-Pacific (A)
8.250%, 05/01/16 1,500,000 1,662,701
JC Penney
9.000%, 08/01/12 500,000 517,500
Macy's Retail Holdings
7.875%, 07/15/15 1,000,000 1,174,849
5.350%, 03/15/12 1,000,000 1,004,091
Staples
9.750%, 01/15/14 1,000,000 1,146,037
Starwood Hotels & Resorts Worldwide
6.250%, 02/15/13 1,500,000 1,554,375
Time Warner Cable
7.500%, 04/01/14 400,000 451,578
5.400%, 07/02/12 1,000,000 1,019,641
-----------
10,237,259
-----------
CONSUMER STAPLES - 0.9%
Anheuser-Busch Inbev Worldwide
3.000%, 10/15/12 1,000,000 1,016,600
Coca-Cola
3.625%, 03/15/14 250,000 266,598
-----------
1,283,198
-----------
ENERGY - 10.2%
Energy Transfer Partners
6.000%, 07/01/13 1,350,000 1,434,313
8.500%, 04/15/14 650,000 741,081
Enterprise Products Operating, Ser M
5.650%, 04/01/13 1,300,000 1,370,073
Kinder Morgan Energy Partners
5.000%, 12/15/13 1,332,000 1,409,137
Petrobras International Finance
3.875%, 01/27/16 1,500,000 1,535,828
Petrohawk Energy
7.875%, 06/01/15 1,800,000 1,908,000
Rockies Express Pipeline (A)
6.250%, 07/15/13 1,215,000 1,245,375
SeaRiver Maritime (B)
0.000%, 09/01/12 3,000,000 2,966,868
Transocean
5.050%, 12/15/16 1,400,000 1,500,066
-----------
14,110,741
-----------
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - (CONTINUED)
--------------------------------------------------------------------------------
FINANCIALS - 13.2%
American International Group
4.250%, 09/15/14 $1,500,000 $ 1,506,986
BankAmerica Capital II, Ser 2
8.000%, 12/15/26 1,500,000 1,470,000
BB&T Capital Trust II
6.750%, 06/07/36 650,000 676,163
BP Capital Markets
3.125%, 03/10/12 1,000,000 1,002,829
Capital One Financial Corp
2.125%, 07/15/14 775,000 776,212
Citigroup
4.750%, 05/19/15 1,500,000 1,579,383
Ford Motor Credit
3.875%, 01/15/15 1,450,000 1,466,394
General Electric Capital Corp (D)
1.311%, 05/09/16 2,000,000 1,909,592
Goldman Sachs Group
5.700%, 09/01/12 1,000,000 1,024,760
HSBC Bank PLC (A)
2.000%, 01/19/14 1,500,000 1,480,434
JPMorgan Chase
5.125%, 09/15/14 500,000 533,437
4.750%, 05/01/13 1,000,000 1,049,072
Lehman Brothers Holdings, MTN (C)
5.625%, 01/24/13 500,000 136,250
NB Capital Trust IV
8.250%, 04/15/27 200,000 197,500
Wachovia
4.875%, 02/15/14 2,000,000 2,098,906
WCI Finance/WEA Finance (A)
5.400%, 10/01/12 1,420,000 1,455,817
-----------
18,363,735
-----------
FOREIGN GOVERNMENTS - 1.3%
Export-Import Bank of Korea
4.000%, 01/11/17 1,000,000 1,019,703
Mexico Government International Bond
5.875%, 02/17/14 750,000 810,000
-----------
1,829,703
-----------
HEALTH CARE - 6.4%
Amgen
1.875%, 11/15/14 2,000,000 2,038,542
Boston Scientific
5.450%, 06/15/14 1,000,000 1,069,280
Gilead Sciences
3.050%, 12/01/16 1,500,000 1,572,053
2.400%, 12/01/14 350,000 362,157
Sanofi
1.625%, 03/28/14 750,000 766,595
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 101
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
SHORT TERM BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - (CONTINUED)
--------------------------------------------------------------------------------
HEALTH CARE - (CONTINUED)
Teva Pharmaceutical Finance IV
1.700%, 11/10/14 $2,000,000 $ 2,039,846
Wellpoint
6.800%, 08/01/12 500,000 515,373
6.000%, 02/15/14 475,000 516,456
-----------
8,880,302
-----------
INDUSTRIAL - 5.8%
Allied Waste North America
6.875%, 06/01/17 1,600,000 1,686,000
Burlington Northern Santa Fe
5.900%, 07/01/12 1,560,000 1,589,663
Continental Airlines Pass Through Trust,
Ser 2010-1, Cl A
4.750%, 01/12/21 1,471,108 1,526,275
L-3 Communications, Ser B
6.375%, 10/15/15 850,000 871,250
Northwest Airlines, Ser 02-1G
6.264%, 11/20/21 1,386,165 1,386,165
Union Pacific
5.450%, 01/31/13 935,000 979,628
-----------
8,038,981
-----------
INFORMATION TECHNOLOGY - 2.2%
Hewlett-Packard
3.000%, 09/15/16 2,000,000 2,059,984
Xerox (D)
1.281%, 05/16/14 1,000,000 987,164
-----------
3,047,148
-----------
MATERIALS - 3.9%
Dow Chemical
4.850%, 08/15/12 1,000,000 1,020,999
Ecolab
2.375%, 12/08/14 1,225,000 1,269,739
Rio Tinto Alcan
5.200%, 01/15/14 1,250,000 1,341,825
Teck Resources
7.000%, 09/15/12 1,743,000 1,805,363
-----------
5,437,926
-----------
TELECOMMUNICATION SERVICES - 5.2%
AT&T
5.875%, 08/15/12 1,250,000 1,285,827
Cellco Partnership/Verizon
Wireless Capital
5.550%, 02/01/14 2,000,000 2,184,712
Telefonica Emisiones SAU
3.992%, 02/16/16 1,500,000 1,498,928
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - (CONTINUED)
--------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES - (CONTINUED)
Thomson Reuters
5.950%, 07/15/13 $1,000,000 $ 1,065,688
Verizon Communications, Inc.
1.950%, 03/28/14 1,200,000 1,230,196
-----------
7,265,351
-----------
UTILITIES - 3.1%
Consolidated Natural Gas
5.000%, 03/01/14 1,000,000 1,072,937
Exelon Generation
5.350%, 01/15/14 1,482,000 1,590,669
MidAmerican Energy Holdings,
5.875%, 10/01/12 500,000 516,471
Ser D
5.000%, 02/15/14 500,000 537,852
Southern California Edison
5.750%, 03/15/14 500,000 553,302
-----------
4,271,231
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $82,089,715) 82,765,575
-----------
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS - 15.7%
--------------------------------------------------------------------------------
FHLMC Gold
6.000%, 01/01/13 23,260 24,645
6.000%, 09/01/13 6,779 7,238
6.000%, 04/01/14 16,048 16,955
6.000%, 05/01/14 65,890 69,603
6.000%, 05/01/14 14,846 15,905
6.000%, 05/01/14 11,358 12,168
6.000%, 05/01/14 8,030 8,602
6.000%, 07/01/14 64,278 67,108
6.000%, 10/01/16 67,847 72,811
6.000%, 04/01/17 236,398 254,137
6.000%, 04/01/29 71,995 80,171
6.000%, 04/01/38 410,655 455,497
5.500%, 07/01/15 159,487 172,787
5.500%, 03/01/17 73,105 78,485
5.500%, 12/01/17 7,214 7,829
5.500%, 02/01/18 88,833 95,845
5.500%, 11/01/18 8,924 9,636
5.500%, 10/01/32 504,684 549,623
5.500%, 12/01/34 325,889 354,704
5.000%, 10/01/18 257,962 276,161
5.000%, 07/01/20 110,515 119,247
5.000%, 06/01/25 583,328 626,323
FHLMC, ARM
4.315%, 06/01/39 459,657 487,648
2.657%, 03/01/35 193,635 204,467
The accompanying notes are an integral part of the financial statements.
102 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
SHORT TERM BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS - (CONTINUED)
--------------------------------------------------------------------------------
FHLMC, ARM (continued)
2.596%, 11/01/35 $1,321,078 $ 1,399,321
2.589%, 09/01/36 1,232,911 1,305,764
2.495%, 10/01/36 1,486,348 1,571,031
2.397%, 12/01/34 1,409,562 1,486,117
2.365%, 01/01/34 269,053 282,263
FNMA
8.000%, 06/01/30 3,740 4,541
8.000%, 11/01/30 2,639 3,204
6.500%, 06/01/16 32,996 35,620
6.500%, 07/01/16 23,069 25,272
6.500%, 11/01/16 21,598 23,661
6.500%, 01/01/17 24,255 26,572
6.500%, 02/01/17 9,264 10,149
6.500%, 04/01/17 35,427 38,933
6.500%, 07/01/17 31,406 34,514
6.000%, 04/01/16 115,036 123,635
6.000%, 04/01/16 253,067 271,509
6.000%, 05/01/16 275,943 296,570
6.000%, 05/01/16 94,339 101,214
6.000%, 06/01/16 13,311 14,306
6.000%, 08/01/16 24,156 25,962
6.000%, 10/01/16 61,082 65,648
6.000%, 05/01/18 172,636 185,541
5.500%, 07/01/14 59,033 64,233
5.500%, 09/01/14 87,176 94,855
5.500%, 08/01/15 205,353 223,441
5.500%, 12/01/16 29,566 32,189
5.500%, 01/01/17 213,434 232,367
5.500%, 09/01/17 310,413 334,872
5.500%, 09/01/17 35,598 38,778
5.500%, 10/01/17 50,500 54,479
5.500%, 11/01/17 84,762 91,382
5.500%, 12/01/17 50,454 54,475
5.500%, 02/01/18 6,209 6,776
5.500%, 04/01/18 13,640 14,884
5.500%, 10/01/18 16,048 17,481
5.500%, 12/01/18 576,062 627,163
5.500%, 09/01/34 674,489 736,128
5.500%, 01/01/35 458,455 503,790
5.000%, 07/01/14 15,688 16,913
5.000%, 05/01/18 15,109 16,345
5.000%, 06/01/18 56,865 61,518
4.000%, 09/01/20 1,709,248 1,816,390
FNMA, ARM
2.587%, 08/01/27 23,853 24,672
2.420%, 06/01/34 1,206,548 1,275,773
2.403%, 01/01/36 851,731 899,163
2.391%, 09/01/33 148,463 156,778
2.309%, 09/01/35 1,908,038 2,015,379
2.059%, 01/01/35 443,277 468,073
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS - (CONTINUED)
--------------------------------------------------------------------------------
FNMA, CMO REMIC,
Ser 2002-18, Cl PC
5.500%, 04/25/17 $ 68,917 $ 71,272
GMNA, CMO
Ser 2004-43, Cl C (D)
5.008%, 12/16/25 500,000 529,264
-----------
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS
(Cost $21,251,610) 21,877,775
-----------
--------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES - 5.3%
--------------------------------------------------------------------------------
Banc of America Commercial Mortgage,
Ser 2005-1, Cl A3
4.877%, 11/10/42 22,810 22,793
Ser 2005-2, Cl A4 (D)
4.783%, 07/10/43 175,518 175,442
Bear Stearns Commercial Mortgage
Securities, Ser 2003-T12, Cl A3 (D)
4.240%, 08/13/39 203,669 205,341
Chase Mortgage Finance,
Ser 2003-S10, Cl A1
4.750%, 11/25/18 363,478 373,512
Chase Mortgage Finance,
Ser 2004-S1, CI A3
5.500%, 02/25/19 222,479 231,491
Citicorp Mortgage Securities,
Ser 2003-10, Cl A1
4.500%, 11/25/18 425,433 435,796
DBUBS Mortgage Trust,
Ser 2011-LC1A, Cl A1(A)
3.742%, 11/10/46 1,324,389 1,402,826
Master Asset Securitization Trust,
Ser 2003-10, Cl 2A1
4.500%, 11/25/13 37,481 38,049
Merrill Lynch Mortgage Investors Trust,
Ser 2005-A2, Cl A4 (D)
2.542%, 02/25/35 146,894 143,293
Morgan Stanley Capital I,
Ser 2003-T11, Cl A4
5.150%, 06/13/41 308,019 319,714
Morgan Stanley Dean Witter Capital I,
Ser 2001-TOP3, Cl A4
6.390%, 07/15/33 35,844 35,816
Ser 2002-IQ2, Cl A4
5.740%, 12/15/35 391,308 394,142
Residential Funding Mortgage Securities I,
Ser 2004-S3, Cl A1
4.750%, 03/25/19 737,791 754,583
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 103
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
SHORT TERM BOND FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES - (CONTINUED)
--------------------------------------------------------------------------------
Sequoia Mortgage Trust,
Ser 2012-1, Cl 2A1
3.474%, 01/25/42 $1,000,000 $ 1,000,000
Wachovia Bank Commercial Mortgage Trust,
Ser 2005-C17, Cl A2
4.782%, 03/15/42 123,345 123,188
Washington Mutual, Ser 2005-8, Cl 1A8
5.500%, 10/25/35 90,513 80,766
Wells Fargo Mortgage Backed Securities Trust,
Ser 2003-13, Cl A1
4.500%, 11/25/18 782,072 799,072
Ser 2003-M, Cl A1(D)
4.692%, 12/25/33 384,389 386,995
Ser 2004-2, Cl A1
5.000%, 01/25/19 423,914 437,189
-----------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $7,299,571) 7,360,008
-----------
--------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 12.9%
--------------------------------------------------------------------------------
Ally Master Owner Trust,
Ser 2011-1, Cl A2
2.150%, 01/15/16 1,075,000 1,093,433
Avis Budget Rental Car Funding AESOP,
Ser 2011-1A, Cl A (A)
1.850%, 11/20/14 1,500,000 1,504,296
BMW Vehicle Owner Trust,
Ser 2010-A, Cl A3
1.390%, 04/25/13 712,111 715,605
Centerpoint Energy Transition Bond,
Ser 2005-A, Cl A2
4.970%, 08/01/14 151,572 152,201
Ser 2008-A, Cl A1
4.192%, 02/01/20 1,358,146 1,465,280
Ford Credit Auto Owner Trust
Ser 2008-A, Cl A1
0.840%, 08/15/16 1,400,000 1,402,153
FPL Recovery Funding,
Ser 2007-A, Cl A2
5.044%, 08/01/15 699,708 722,237
Hertz Vehicle Financing,
Ser 2011-1A, Cl A1 (A)
2.200%, 03/25/16 1,400,000 1,410,387
Massachusetts RRB Special
Purpose Trust, Ser 2001-1, Cl A
6.530%, 06/01/15 759,044 789,446
PG&E Energy Recovery Funding,
Ser 2005-1, Cl A5
4.470%, 12/25/14 1,000,000 1,023,820
Ser 2005-2, Cl A2
5.030%, 03/25/14 62,642 63,060
--------------------------------------------------------------------------------
Description Par/Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - (CONTINUED)
--------------------------------------------------------------------------------
PSE&G Transition Funding,
Ser 2005-1, Cl A2
4.340%, 06/16/14 $ 9,018 $ 9,047
Public Service New Hampshire Funding,
Ser 2001-1, Cl A3
6.480%, 05/01/15 606,297 627,551
SLM Student Loan Trust, (D)
Ser 2011-2, Cl A1
0.876%, 11/25/27 1,908,648 1,898,718
Ser 2011-A, Cl A1(A)
1.285%, 10/15/24 2,099,758 2,079,434
Volkswagen Auto Loan Enhanced
Trust, Ser 2011-1, Cl A3
1.220%, 06/22/15 1,500,000 1,511,597
World Omni Auto Receivables Trust,
Ser 2011-A, Cl A4
1.910%, 04/15/16 1,425,000 1,456,584
-----------
TOTAL ASSET-BACKED SECURITIES
(Cost $17,913,149) 17,924,849
-----------
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 0.4%
--------------------------------------------------------------------------------
U.S. Treasury Note
0.750%, 01/31/17 550,000 554,426
------------
TOTAL U.S. TREASURY OBLIGATION
(Cost $553,738) 554,426
------------
--------------------------------------------------------------------------------
TAXABLE MUNICIPAL BONDS - 2.5%
--------------------------------------------------------------------------------
CALIFORNIA - 2.5%
California State, GO (D)
5.650%, 04/01/39 1,850,000 1,940,650
University of California Revenue,
Build America Bonds, Taxable, RB (D)
1.988%, 05/15/50 1,500,000 1,522,770
------------
3,463,420
------------
TOTAL TAXABLE MUNICIPAL BONDS
(Cost $3,445,266) 3,463,420
------------
--------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY - 2.2%
--------------------------------------------------------------------------------
Dreyfus Cash Management 2,985,501 2,985,501
------------
TOTAL REGISTERED INVESTMENT COMPANY
(Cost $2,985,501) 2,985,501
------------
TOTAL INVESTMENTS - 98.6%
(Cost $135,538,550) 136,931,554
------------
OTHER ASSETS & LIABILITIES, NET - 1.4%
1,988,000
------------
NET ASSETS - 100.0% $138,919,554
============
The accompanying notes are an integral part of the financial statements.
104 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
SHORT TERM BOND FUND (CONCLUDED)
--------------------------------------------------------------------------------
(A) SECURITIES SOLD WITHIN THE TERMS OF A PRIVATE PLACEMENT MEMORANDUM,
EXEMPT FROM REGISTRATION UNDER SECTION 3(A), 4(2) OR 144A OF THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY BE SOLD ONLY TO THE DEALERS
IN THAT PROGRAM OR OTHER "ACCREDITED INVESTORS". THE VALUE OF THESE
SECURITIES AS OF JANUARY 31, 2012 WAS $12,241,270 AND REPRESENTED 8.8% OF
NET ASSETS.
(B) THIS SECURITY IS SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE EFFECTIVE
MATURITY.
(C) THE ISSUER IS IN DEFAULT OF CERTAIN DEBT COVENANTS. INCOME IS NOT BEING
ACCRUED. AS OF JANUARY 31, 2012, THE VALUE OF THESE SECURITIES AMOUNTED
TO $136,250, WHICH REPRESENTS 0.1% OF NET ASSETS.
(D) FLOATING RATE SECURITY. RATE DISCLOSED IS AS OF JANUARY 31, 2012.
ARM - ADJUSTABLE RATE MORTGAGE
CL - CLASS
CMO - COLLATERALIZED MORTGAGE OBLIGATION
FHLMC - FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA - FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA - GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO - GENERAL OBLIGATION
LLC - LIMITED LIABILITY COMPANY
MTN - MEDIUM TERM NOTE
PLC - PUBLIC LIABILITY COMPANY
RB - REVENUE BOND
REMIC - REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER - SERIES
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ----------- ------------
Corporate Obligations $ 82,765,575 $ -- $ 82,765,575 $ --
U.S. Government Agency Mortgage-Backed Obligations 21,877,775 -- 21,877,775 --
Mortgage-Backed Securities 7,360,008 -- 7,360,008 --
Asset-Backed Securities 17,924,849 -- 17,924,849 --
U.S. Treasury Obligation 554,426 -- 554,426 --
Taxable Municipal Bonds 3,463,420 -- 3,463,420 --
Registered Investment Company 2,985,501 2,985,501 -- --
------------ ------------ ----------- ------------
Total: $136,931,554 $ 2,985,501 $133,946,053 $ --
============ ============ ============ ============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 105
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
WISCONSIN TAX-EXEMPT FUND
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - 95.0%
--------------------------------------------------------------------------------
GUAM - 0.6%
Guam Government Business
Privilege, Ser A, RB
5.000%, 01/01/19 $ 750,000 $ 861,645
-----------
MASSACHUSETTS - 0.8%
Massachusetts State Housing Finance
Agency, Multi-Family Housing
Authority, ETM, RB, HUD Section 8
7.000%, 04/01/21 (A) 910,000 1,267,393
-----------
PUERTO RICO - 25.1%
Commonwealth of Puerto Rico, Public Improvement,
GO, AGM Insured, Unrefunded Balance
5.250%, 07/01/27 (A) 755,000 755,906
5.125%, 07/01/30 (A) 1,215,000 1,216,191
GO, National-RE Insured
5.650%, 07/01/15 2,240,000 2,438,643
Ser A, GO, National-RE Insured
5.500%, 07/01/20 1,020,000 1,155,579
Ser A, GO, XLCA Insured
5.500%, 07/01/17 1,130,000 1,287,047
Puerto Rico Commonwealth
Highway & Transportation Authority,
Grant Anticipation Revenue, RB,
National-RE Insured
5.000%, 09/15/20 (A) 780,000 815,662
Transportation Revenue, Ser AA-1,
ETM, RB, AGM Insured,
Prerefunded 07/01/12 @ 100 (B)
4.950%, 07/01/12 620,000 632,096
Transportation Revenue, Ser AA-1,
RB, AGM Insured,
Unrefunded Balance
4.950%, 07/01/26 (A) 880,000 960,854
Transportation Revenue,
Ser E, RB, AGM Insured
5.500%, 07/01/23 1,120,000 1,318,811
Transportation Revenue, Ser N, RB
5.500%, 07/01/23 1,120,000 1,261,714
Puerto Rico Commonwealth
Infrastructure Financing Authority,
Special Tax Revenue, Ser A,
BHAC Credit, FGIC Insured
5.500%, 07/01/22 1,385,000 1,644,868
FGIC Insured
5.500%, 07/01/21 945,000 1,071,876
Puerto Rico Electric Power Authority,
Ser TT, RB
5.000%, 07/01/22 (A) 300,000 325,077
5.000%, 07/01/37 (A) 1,700,000 1,749,402
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
PUERTO RICO - (CONTINUED)
Ser UU, RB, AGM Insured
5.000%, 07/01/20 (A) $1,000,000 $ 1,116,650
Ser WW, RB
5.500%, 07/01/38 (A) 2,500,000 2,650,625
Ser XX, RB (A)
4.625%, 07/01/25 2,100,000 2,251,809
Puerto Rico Municipal Finance Agency,
Ser A, GO, AGM Insured
5.000%, 08/01/30 (A) 880,000 913,669
Ser C, GO, CIFG Insured
5.250%, 08/01/23 1,000,000 1,104,570
Puerto Rico Public Buildings
Authority, Revenue Refunding,
Government Facilities,
Ser H, RB, AMBAC,
Commonwealth Guaranteed
5.500%, 07/01/17 1,250,000 1,410,300
Ser L, RB, XLCA,
Commonwealth Guaranteed
5.500%, 07/01/21 500,000 552,540
Puerto Rico Sales Tax Financing,
Corporate Sales Tax Revenue,
First Sub-Ser A, RB
5.500%, 08/01/37 (A) 2,500,000 2,752,625
5.750%, 08/01/37 (A) 1,400,000 1,561,140
6.375%, 08/01/39 (A) 3,000,000 3,465,840
6.000%, 08/01/42 (A) 1,000,000 1,127,030
6.500%, 08/01/44 (A) 2,000,000 2,339,360
Puerto Rico Sales Tax Financing,
Corporate Sales Tax Revenue, Ser C (A)
5.000%, 08/01/22 1,000,000 1,209,190
-----------
39,089,074
-----------
VIRGIN ISLANDS - 5.2%
Virgin Islands Public Finance Authority,
Gross Receipts Taxes Loan Notes, RB,
National-RE FGIC Insured
5.000%, 10/01/21 (A) 2,000,000 2,151,060
5.000%, 10/01/23 (A) 1,000,000 1,063,950
5.000%, 10/01/24 (A) 2,500,000 2,653,250
5.000%, 10/01/27 (A) 2,000,000 2,081,580
Virgin Islands Water & Power
Authority, Water Systems Revenue,
Refunding, Asset Guarantee, RB,
National-RE-IBC Bank MBIA Insured
5.250%, 07/01/12 (A) 85,000 85,317
-----------
8,035,157
-----------
The accompanying notes are an integral part of the financial statements.
106 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
WISCONSIN TAX-EXEMPT FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
WISCONSIN - 63.3%
Appleton, Redevelopment Authority,
Fox Cities Performing Arts Project,
Ser A, RB, LOC Associated Bank NA
4.750%, 09/01/17 (A) $ 360,000 $ 360,795
4.850%, 09/01/19 (A) 435,000 435,900
Ashwaubenon, Community
Development Authority,
Lease Revenue, Refunding,
Arena Project, RB
4.700%, 06/01/15 (A) 500,000 506,900
5.050%, 06/01/19 (A) 1,030,000 1,042,916
5.200%, 06/01/22 (A) 500,000 505,995
5.000%, 06/01/23 (A) 925,000 935,332
Beloit, Community Development
Authority, Lease Revenue, RB
4.700%, 03/01/21 (A) 345,000 386,100
4.750%, 03/01/22 (A) 300,000 333,897
Burlington, Community Development
Authority, Lease Revenue, RB
4.000%, 04/01/16 (A) 200,000 212,760
4.100%, 04/01/17 (A) 750,000 794,212
Cudahy, Community Development
Authority, Redevelopment
Lease Revenue, RB
4.000%, 06/01/12 100,000 101,094
3.650%, 06/01/13 200,000 207,106
4.250%, 06/01/17 (A) 500,000 542,940
Delafield, Community Development
Authority, Redevelopment Revenue,
St. Johns Northwestern Military, RB
4.150%, 06/01/25 (A) 250,000 284,088
4.250%, 06/01/26 (A) 330,000 373,395
4.600%, 06/01/30 (A) 600,000 677,016
Eau Claire, Housing Authority,
Housing Revenue, London Hill
Townhouses Project, Ser A, RB
6.250%, 05/01/15 290,000 289,025
Glendale, Community Development
Authority, Lease Revenue,
Bayshore Public Parking Facility, Ser A, RB
5.000%, 10/01/24 (A) 1,500,000 1,585,185
4.750%, 10/01/27 (A) 1,000,000 1,055,230
Tax Increment District No. 7, RB
4.350%, 09/01/16 (A) 1,000,000 1,013,880
4.500%, 09/01/18 (A) 2,000,000 2,026,340
Tax Increment District No. 7, Ser B, RB
3.850%, 09/01/20 (A) 2,250,000 2,454,548
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
WISCONSIN - (CONTINUED)
Green Bay, Redevelopment Authority,
Bellin Memorial Hospital Project, RB
6.000%, 12/01/29 (A) $1,000,000 $ 1,111,460
6.150%, 12/01/32 (A) 1,000,000 1,116,530
Ser A
5.500%, 02/15/21 (A) 400,000 400,712
Lease Revenue, Refunding,
Convention Center Project, RB
4.200%, 06/01/25 (A) 1,000,000 1,060,430
4.300%, 06/01/29 (A) 1,000,000 1,049,870
Madison, Community Development
Authority Revenue, Wisconsin
Alumni Research Fund Project, RB
5.000%, 10/01/22 (A) 1,065,000 1,306,137
5.000%, 10/01/27 (A) 925,000 1,100,195
5.000%, 10/01/28 (A) 250,000 295,615
5.000%, 10/01/34 (A) 4,500,000 5,111,730
Middleton, Community Development
Authority, Lease Revenue, Ser A, RB
4.350%, 10/01/12 (A) 1,630,000 1,674,662
4.550%, 10/01/12 (A) 500,000 514,360
Milwaukee, Redevelopment Authority,
Summerfest Project, RB
4.500%, 08/01/23 (A) 110,000 123,750
4.700%, 08/01/25 (A) 110,000 124,597
5.000%, 08/01/30 (A) 2,000,000 2,258,100
Milwaukee, Redevelopment Authority,
Development Revenue, Refunding,
Marquette University Project,
RB, XLCA Insured
4.150%, 11/01/16 (A) 1,275,000 1,292,659
4.250%, 11/01/17 (A) 1,000,000 1,013,610
4.350%, 11/01/18 (A) 500,000 506,395
Milwaukee, Redevelopment Authority,
Lease Revenue,
Milwaukee Public Schools,
Congress School, Ser A, RB
4.500%, 08/01/20 (A) 500,000 512,135
4.600%, 08/01/22 (A) 500,000 527,370
RB, AMBAC Insured
3.650%, 08/01/13 2,000,000 2,072,660
3.800%, 08/01/14 (A) 1,000,000 1,034,320
4.000%, 08/01/16 (A) 1,000,000 1,033,800
4.100%, 08/01/17 (A) 1,000,000 1,032,710
4.125%, 08/01/18 (A) 2,010,000 2,069,877
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 107
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
WISCONSIN TAX-EXEMPT FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
WISCONSIN - (CONTINUED)
Milwaukee, Redevelopment Authority,
Redevelopment Revenue,
YMCA Greater Milwaukee,
Ser A, RB, LOC Marshall & Ilsley Bank
5.250%, 06/01/19 (A) $ 360,000 $ 360,345
5.300%, 06/01/29 (A) 1,800,000 1,800,522
Ser B, RB, LOC FHLB
5.150%, 06/01/19 (A) 175,000 180,786
5.200%, 06/01/29 (A) 355,000 372,093
Monroe, Redevelopment Authority,
Development Revenue,
Monroe Clinic Inc. RB
5.875%, 02/15/39 (A) 2,850,000 3,141,698
Neenah, Community Development
Authority, Lease Revenue, Ser A, RB
4.300%, 12/01/20 (A) 1,000,000 1,050,500
5.125%, 12/01/23 (A) 1,000,000 1,069,500
4.625%, 12/01/28 (A) 600,000 664,848
4.700%, 12/01/28 (A) 1,250,000 1,308,188
4.750%, 12/01/32 (A) 400,000 437,740
Onalaska, Community Development
Authority, Lease Revenue, RB
3.650%, 10/01/12 (A) 100,000 101,374
3.900%, 10/01/14 (A) 100,000 102,938
4.000%, 10/01/15 100,000 102,934
4.150%, 10/01/16 (A) 200,000 206,256
Osceola Redevelopment Authority,
Lease Revenue, Refunding, Ser A, RB
1.000%, 12/01/12 200,000 200,148
1.350%, 12/01/13 175,000 175,441
1.650%, 12/01/14 200,000 201,048
1.900%, 12/01/15 175,000 176,940
Oshkosh, Housing Authority,
VNA Apartments Inc. Project, RB,
GNMA Collateralized
5.450%, 09/20/17 (A) 85,000 85,079
5.750%, 09/20/38 (A) 1,260,000 1,261,147
Southeast Wisconsin Professional
Baseball Park District,
League, Capital Appreciation,
COP, ETM, National-RE Insured
0.000%, 12/15/15 970,000 934,740
0.000%, 12/15/17 1,000,000 931,130
Sales Tax Revenue, Refunding,
Ser A, RB, National-RE Insured
5.500%, 12/15/18 250,000 316,317
5.500%, 12/15/19 2,000,000 2,564,140
5.500%, 12/15/21 1,500,000 1,972,650
5.500%, 12/15/26 4,510,000 5,524,209
5.100%, 12/15/29 (A) 285,000 288,739
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
WISCONSIN - (CONTINUED)
Sun Prairie, Community Development
Authority, Lease Revenue, RB
4.400%, 08/01/20 (A) $ 150,000 $ 153,888
4.500%, 08/01/21 (A) 150,000 153,795
Tax Incremental District No. 8, RB
4.300%, 08/01/21 (A) 975,000 1,022,366
4.350%, 08/01/22 (A) 975,000 1,019,343
Waukesha, Redevelopment Authority,
Avalon Square Project,
Ser A, RB, GNMA Collateralized
5.000%, 06/20/21 (A) 960,000 981,130
Waukesha, Redevelopment Authority,
Weldall Manufacturing Inc. Project,
RB, LOC Harris N.A.
4.200%, 12/01/24 (A) 150,000 164,037
4.500%, 12/01/30 (A) 1,200,000 1,311,120
West Bend, Redevelopment Authority,
Lease Revenue, RB
4.500%, 10/01/23 (A) 250,000 265,848
4.550%, 10/01/24 (A) 250,000 265,833
4.600%, 10/01/25 (A) 150,000 159,383
4.650%, 10/01/28 (A) 250,000 262,950
Weston, Community Development Authority,
Lease Revenue,
Ser A, RB
4.100%, 10/01/16 (A) 500,000 524,810
4.250%, 10/01/17 (A) 200,000 209,954
4.350%, 10/01/18 (A) 500,000 513,710
4.400%, 10/01/18 (A) 500,000 524,295
5.250%, 10/01/20 (A) 445,000 474,762
4.500%, 10/01/21 (A) 100,000 110,105
4.700%, 10/01/21 (A) 1,230,000 1,291,746
4.625%, 10/01/25 (A) 825,000 885,844
Guaranty Agreement:
Associated Trust Co.
4.450%, 10/01/19 (A) 500,000 513,120
Ser B, RB
4.750%, 10/01/22 (A) 130,000 136,044
4.750%, 10/01/23 (A) 140,000 146,107
Winnebago County, Housing Authority,
Housing Revenue, Ser A, RB
6.875%, 03/01/12 (A) 25,000 25,113
Wisconsin Center District,
Capital Appreciation,
Senior Dedicated Tax Revenue,
Ser A, RB, National-RE Insured
0.000%, 12/15/26 2,500,000 1,363,050
Ser 1998A, Junior Dedicated
Tax Revenue, RB, AGM Insured
5.250%, 12/15/23 2,585,000 3,140,439
The accompanying notes are an integral part of the financial statements.
108 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
WISCONSIN TAX-EXEMPT FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par/Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
WISCONSIN - (CONTINUED)
Wisconsin Dells, Community
Development Authority,
Lease Revenue, RB
5.000%, 03/01/22 (A) $1,500,000 $ 1,602,420
4.600%, 03/01/25 (A) 1,200,000 1,242,072
Ser A
4.300%, 03/01/22 (A) 225,000 236,511
4.450%, 03/01/25 (A) 300,000 314,712
Wisconsin Housing & Economic
Development Authority,
Multi-Family Housing,
Ser A, RB
GO of Authorization
5.375%, 11/01/30 (A) 2,135,000 2,266,858
Ser A, RB (C)
4.250%, 12/01/35 (A) 1,500,000 1,588,020
Ser B, RB,
GO of Authorization
4.300%, 05/01/27 (A) 1,000,000 1,012,720
4.400%, 05/01/37 (A) 500,000 498,460
Ser E, RB, GO of Authorization
4.700%, 11/01/25 (A) 275,000 284,001
4.900%, 11/01/35 (A) 1,650,000 1,671,599
Wisconsin Housing Finance Authority,
RB, FHA Mortgages Insured,
Prerefunded 12/01/17 @ 100 (B)
6.100%, 12/01/17 925,000 1,065,979
RB, National-RE FHA Mortgages Insured,
Prerefunded 12/01/17 @ 100 (B)
6.100%, 12/01/17 875,000 1,008,358
------------
98,410,290
------------
TOTAL MUNICIPAL BONDS
(Cost $138,535,472) 147,663,559
------------
--------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY - 3.8%
--------------------------------------------------------------------------------
TFIT Tax-Free Cash Reserve Portfolio 5,933,164 5,933,164
------------
TOTAL REGISTERED INVESTMENT COMPANY
(Cost $5,933,164) 5,933,164
------------
TOTAL INVESTMENTS - 98.8%
(Cost $144,468,636) 153,596,723
------------
OTHER ASSETS & LIABILITIES, NET - 1.2% 1,806,272
------------
NET ASSETS - 100.0% $155,402,995
============
--------------------------------------------------------------------------------
(A) THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY.
(B) PREREFUNDED SECURITY - THE MATURITY DATE SHOWN IS THE PREREFUNDED DATE.
(C) FLOATING RATE SECURITY. RATE DISCLOSED IS AS OF JANUARY 31, 2012.
AGM - ASSURED GUARANTY MUNICIPAL CORPORATION
AMBAC - AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
BHAC - BERKSHIRE HATHAWAY ASSURANCE CORP.
COP - CERTIFICATES OF PARTICIPATION
ETM - ESCROWED TO MATURITY
FGIC - FINANCIAL GUARANTY INSURANCE CORPORATION
FHA - FEDERAL HOUSING ADMINISTRATION
FHLB - FEDERAL HOME LOAN BANK
GNMA - GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO - GENERAL OBLIGATION
HUD - HOUSING AND URBAN DEVELOPMENT
IBC - INTERNATIONAL BANCSHARES CORP.
LOC - LETTER OF CREDIT
MBIA - MUNICIPAL BOND INVESTORS ASSURANCE
NA - NATIONAL ASSOCIATION
RB - REVENUE BOND
SER - SERIES
XLCA - XL CAPITAL ASSURANCE
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 109
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
WISCONSIN TAX-EXEMPT FUND (CONCLUDED)
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------ ------------ ----------- ------------
Municipal Bonds $147,663,559 $ -- $147,663,559 $ --
Registered Investment Company 5,933,164 5,933,164 -- --
------------ ------------ ----------- ------------
Total: $153,596,723 $ 5,933,164 $147,663,559 $ --
============ ============ ============ ============
The accompanying notes are an integral part of the financial statements.
110 HIGHMARK(R) FUNDS
This Page Left Blank Intentionally.
HIGHMARK(R) FUNDS 111
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2012 (UNAUDITED)
COGNITIVE
BALANCED VALUE
FUND FUND
------------ ------------
ASSETS:
Investments, at Value + ................................................................ $ 21,851,554 $ 86,567,777
Repurchase Agreements, at Value + ...................................................... 1,665,391 939,884
Cash ................................................................................... -- --
Foreign Currency ....................................................................... -- --
Receivable for Investments Sold ........................................................ -- 2,281,032
Receivable for Fund Shares Sold ........................................................ 12,481 3,794
Accrued Income ......................................................................... 69,455 37,122
Prepaid Expenses ....................................................................... 20,796 28,824
Deferred Compensation .................................................................. 1,792 6,599
Reclaims Receivable .................................................................... 540 --
Due from Adviser, net .................................................................. -- --
------------ ------------
TOTAL ASSETS ........................................................................ 23,622,009 89,865,032
------------ ------------
LIABILITIES:
Payable Upon Return of Securities Loaned ............................................... -- --
Payable for Investments Purchased ...................................................... -- 2,683,492
Payable for Fund Shares Redeemed ....................................................... 24,724 2,111
Income Distribution Payable ............................................................ -- --
Due to Custodian ....................................................................... -- --
Investment Adviser Fees Payable ........................................................ 1,712 55,088
Administration Fees Payable ............................................................ 2,946 10,847
Chief Compliance Officer Fees Payable .................................................. 1,522 1,522
Custodian Fees Payable ................................................................. 123 452
Audit Fees Payable ..................................................................... 16,004 15,555
Deferred Compensation Payable .......................................................... 1,792 6,599
Shareholder Servicing Fees Payable ..................................................... 2,843 359
Transfer Agent Fees Payable ............................................................ 5,916 8,290
Printing Fees Payable .................................................................. 1,226 4,558
Trustees Fees Payable .................................................................. 241 1,218
Accrued Distribution Fees .............................................................. 2,027 488
Accrued Expenses and Other Payables .................................................... 5,274 4,648
Unrealized Depreciation on Foreign Currency Contracts (1) .............................. -- --
------------ ------------
TOTAL LIABILITIES ................................................................... 66,350 2,795,227
------------ ------------
NET ASSETS ....................................................................... $ 23,555,659 $ 87,069,805
============ ============
NET ASSETS:
Paid-in Capital (unlimited authorized - no par value) .................................. $ 20,219,716 $ 85,022,695
Undistributed Net Investment Income/(Accumulated Net Investment Loss) .................. 22,310 (264,602)
Accumulated Net Realized Gain (Loss) on Investments, Futures Contracts and Foreign
Currency Transactions ............................................................... (343,203) (9,155,689)
Net Unrealized Appreciation (Depreciation) on Investments, Forward Foreign Currency
Contracts, Futures Contracts and Foreign Currency Transactions ...................... 3,656,836 11,467,401
------------ ------------
NET ASSETS ....................................................................... $ 23,555,659 $ 87,069,805
============ ============
+ Cost of Investments and Repurchase Agreements ........................................ $ 19,860,109 $ 76,040,260
* Includes Market Value of Securities on Loan .......................................... $ -- $ --
** Cost of foreign currency is $63,532.
Amounts designated as "--" are either not applicable or less than $1.00.
(1) The primary risk exposure is foreign exchange contracts (see Note 2).
The accompanying notes are an integral part of the financial statements.
112 HIGHMARK(R) FUNDS
GENEVA GENEVA
ENHANCED EQUITY MID CAP SMALL CAP INTERNATIONAL
GROWTH INCOME GROWTH GROWTH OPPORTUNITIES
FUND FUND FUND FUND FUND
------------ ------------ ------------- ------------ -------------
ASSETS:
Investments, at Value + .................. $ 81,021,230 $ 22,519,391 $ 597,251,915 $ 30,761,207 $ 200,489,683*
Repurchase Agreements, at Value + ........ 1,090,800 -- -- -- 3,378,464
Cash ..................................... -- -- -- -- 500,000
Foreign Currency ......................... -- -- -- -- 59,668**
Receivable for Investments Sold .......... 52,130 -- 2,384,025 630,723 --
Receivable for Fund Shares Sold .......... 6,837 10,555 2,905,094 49,427 16,384
Accrued Income ........................... 14,976 24,050 80,143 1,544 344,449
Prepaid Expenses ......................... 28,577 22,573 46,148 8,287 35,229
Deferred Compensation .................... 6,121 1,771 43,890 2,309 15,283
Reclaims Receivable ...................... 609 -- -- -- 87,674
Due from Adviser, net .................... -- 3,132 -- -- --
------------ ------------ ------------- ------------ -------------
TOTAL ASSETS .......................... 82,221,280 22,581,472 602,711,215 31,453,497 204,926,834
------------ ------------ ------------- ------------ -------------
LIABILITIES:
Payable Upon Return of Securities
Loaned ................................ -- -- -- -- 635,580
Payable for Investments Purchased ........ 47,380 -- 4,959,835 710,873 --
Payable for Fund Shares Redeemed ......... 8,597 11,303 509,907 4,040 108,818
Income Distribution Payable .............. -- -- -- -- 3
Due to Custodian ......................... -- -- -- -- 143
Investment Adviser Fees Payable .......... 50,034 -- 338,341 17,562 128,805
Administration Fees Payable .............. 10,061 2,911 72,135 3,795 25,133
Chief Compliance Officer Fees Payable .... 1,522 1,525 1,525 1,527 1,522
Custodian Fees Payable ................... 419 121 3,005 158 29,098
Audit Fees Payable ....................... 15,564 15,302 16,909 15,377 27,141
Deferred Compensation Payable ............ 6,121 1,771 43,890 2,309 15,283
Shareholder Servicing Fees Payable ....... 356 2,466 66,872 3,204 7,754
Transfer Agent Fees Payable .............. 8,200 11,536 60,817 4,823 18,523
Printing Fees Payable .................... 7,348 700 5,679 784 15,876
Trustees Fees Payable .................... 1,447 381 1,663 385 2,510
Accrued Distribution Fees ................ 563 5,391 87,449 4,118 1,965
Accrued Expenses and Other Payables ...... 5,888 3,393 2,791 3,223 23,473
Unrealized Depreciation on Foreign
Currency Contracts (1) ................ -- -- -- -- 137,984
------------ ------------ ------------- ------------ -------------
TOTAL LIABILITIES ..................... 163,500 56,800 6,170,818 772,178 1,179,611
------------ ------------ ------------- ------------ -------------
NET ASSETS ......................... $ 82,057,780 $ 22,524,672 $ 596,540,397 $ 30,681,319 $ 203,747,223
============ ============ ============= ============ =============
NET ASSETS:
Paid-in Capital (unlimited authorized
- no par value) ....................... $ 66,733,902 $ 28,506,199 $ 465,887,785 $ 26,608,140 $ 244,353,794
Undistributed Net Investment
Income/(Accumulated Net Investment
Loss) ................................. (150,670) (25,440) (1,966,900) (155,641) (823,431)
Accumulated Net Realized Gain (Loss)
on Investments, Futures Contracts
and Foreign Currency Transactions ..... (12,691,784) (9,085,059) 229,989 (92,733) (57,098,793)
Net Unrealized Appreciation
(Depreciation) on Investments,
Forward Foreign Currency Contracts,
Futures Contracts and Foreign
Currency Transactions ................. 28,166,332 3,128,972 132,389,523 4,321,553 17,315,653
------------ ------------ ------------- ------------ -------------
NET ASSETS ......................... $ 82,057,780 $ 22,524,672 $ 596,540,397 $ 30,681,319 $ 203,747,223
============ ============ ============= ============ =============
+ Cost of Investments and Repurchase
Agreements ............................ $ 53,945,698 $ 19,390,419 $ 464,862,392 $ 26,439,654 $ 186,416,330
* Includes Market Value of Securities
on Loan ............................... $ -- $ -- $ -- $ -- $ 573,210
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 113
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2012 (UNAUDITED)
COGNITIVE
BALANCED VALUE
FUND FUND
------------ ------------
FIDUCIARY SHARES:
Net Assets ..................................................... $ 16,549,046 $ 6,424,409
Shares of beneficial interest outstanding ...................... 1,163,992 552,378
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (A) ...... $ 14.22 $ 11.63
============ ============
CLASS A SHARES:
Net Assets ..................................................... $ 6,091,774 $ 658,314
Shares of beneficial interest outstanding ...................... 429,340 56,406
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE (A) ................ $ 14.19 $ 11.67
------------ ------------
Maximum Offering Price Per Share (B) ........................ $ 15.02 $ 12.35
============ ============
CLASS B SHARES:
Net Assets ..................................................... $ 50,424 N/A
Shares of beneficial interest outstanding ...................... 3,562 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE (A) .................. $ 14.16 N/A
============ ============
CLASS C SHARES:
Net Assets ..................................................... $ 864,415 $ 422,350
Shares of beneficial interest outstanding ...................... 61,273 37,104
NET ASSET VALUE AND OFFERING PRICE PER SHARE (A) .................. $ 14.11 $ 11.38
============ ============
CLASS M SHARES:
Net Assets ..................................................... N/A $ 79,564,732
Shares of beneficial interest outstanding ...................... N/A 6,840,993
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (A) ...... N/A $ 11.63
============ ============
N/A Not Applicable
(A) Fiduciary Class, Class A, and Class M Shares of certain funds have
possible redemption and exchange fees (See Note 2 in the notes to
financial statements). Class B and Class C Shares have contingent deferred
sales charges (See Note 3 in the notes to financial statements).
(B) The sales load for the class is 5.5%.
The accompanying notes are an integral part of the financial statements.
114 HIGHMARK(R) FUNDS
GENEVA GENEVA
ENHANCED EQUITY MID CAP SMALL CAP INTERNATIONAL
GROWTH INCOME GROWTH GROWTH OPPORTUNITIES
FUND FUND FUND FUND FUND
------------ ----------- ------------ ------------ -------------
FIDUCIARY SHARES:
Net Assets .............................. $ 2,019,353 $ 8,048,439 $305,801,379 $ 19,036,276 $ 73,623,161
Shares of beneficial interest
outstanding ........................... 174,645 844,587 13,009,043 616,198 11,745,129
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE (A) .......... $ 11.56 $ 9.53 $ 23.51 $ 30.89 $ 6.27
============ =========== ============ ============ =============
CLASS A SHARES:
Net Assets .............................. $ 1,902,593 $10,390,975 $240,794,514 $ 8,897,813 $ 3,886,478
Shares of beneficial interest
outstanding ........................... 168,172 1,093,473 10,320,876 290,075 618,664
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE (A) ........................... $ 11.31 $ 9.50 $ 23.33 $ 30.67 $ 6.28
------------ ----------- ------------ ------------ -------------
Maximum Offering Price Per Share (B) .... $ 11.97 $ 10.05 $ 24.69 $ 32.46 $ 6.65
============ =========== ============ ============ =============
CLASS B SHARES:
Net Assets .............................. N/A $ 1,437,352 $ 4,740,607 N/A N/A
Shares of beneficial interest
outstanding ........................... N/A 150,800 224,012 N/A N/A
NET ASSET VALUE AND OFFERING PRICE PER
SHARE (A) ............................... N/A $ 9.53 $ 21.16 N/A N/A
============ =========== ============ ============ =============
CLASS C SHARES:
Net Assets .............................. $ 194,189 $ 2,647,906 $ 45,203,897 $ 2,747,230 $ 1,384,943
Shares of beneficial interest
outstanding ........................... 17,739 280,067 2,110,025 90,984 221,475
NET ASSET VALUE AND OFFERING PRICE PER
SHARE (A) ............................... $ 10.95 $ 9.45 $ 21.42 $ 30.19 $ 6.25
============ =========== ============ ============ =============
CLASS M SHARES:
Net Assets .............................. $ 77,941,645 N/A N/A N/A $ 124,852,641
Shares of beneficial interest
outstanding ........................... 6,734,639 N/A N/A N/A 19,920,757
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE (A) .......... $ 11.57 N/A N/A N/A $ 6.27
============ =========== ============ ============ =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
HIGHMARK(R) FUNDS 115
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2012 (UNAUDITED)
LARGE CAP LARGE CAP
CORE EQUITY GROWTH
FUND FUND
------------ ------------
ASSETS:
Investments, at Value + ................................................... $ 65,798,538 $ 73,832,677
Repurchase Agreements, at Value + ......................................... 808,766 --
Affiliated Investments, at Value ++ ....................................... -- --
Cash ...................................................................... 40,000* --
Receivable for Investments Sold ........................................... -- 437,742
Receivable for Fund Shares Sold ........................................... 240 15,214
Accrued Income ............................................................ 34,996 32,209
Prepaid Expenses .......................................................... 22,330 22,634
Deferred Compensation ..................................................... 5,099 5,657
Reclaims Receivable ....................................................... 739 3,312
Variation Margin Receivable ............................................... -- --
Due from Adviser, net ..................................................... -- --
------------ ------------
TOTAL ASSETS ........................................................... 66,710,708 74,349,445
------------ ------------
LIABILITIES:
Payable for Investments Purchased ......................................... -- --
Payable for Fund Shares Redeemed .......................................... 139,093 59,164
Investment Adviser Fees Payable ........................................... 24,971 28,549
Administration Fees Payable ............................................... 8,380 9,300
Chief Compliance Officer Fees Payable ..................................... 1,011 1,521
Custodian Fees Payable .................................................... 349 388
Audit Fees Payable ........................................................ 22,063 15,487
Deferred Compensation Payable ............................................. 5,099 5,657
Shareholder Servicing Fees Payable ........................................ 5,857 8,459
Transfer Agent Fees Payable ............................................... 7,529 20,543
Printing Fees Payable ..................................................... 1,953 3,931
Trustees Fees Payable ..................................................... 266 686
Accrued Distribution Fees ................................................. 1,501 6,403
Variation Margin Payable .................................................. 350 --
Accrued Expenses and Other Payables ....................................... 7,719 4,188
------------ ------------
TOTAL LIABILITIES ...................................................... 226,141 164,276
------------ ------------
NET ASSETS .......................................................... $ 66,484,567 $ 74,185,169
============ ============
NET ASSETS:
Paid-in Capital (unlimited authorized - no par value) ..................... $ 79,624,606 $ 71,394,457
Undistributed Net Investment Income/(Accumulated Net Investment Loss) ..... (16,270) 77,712
Accumulated Net Realized Gain (Loss) on Investments, Investments in
Affiliated Funds, Futures Contracts, Foreign Currency Transactions
and Capital Gain Distributions Received ................................ (19,772,437) (14,259,919)
Net Unrealized Appreciation (Depreciation) on Investments, Investments
in Affiliated Funds, Futures Contracts and Foreign Currency
Transactions ........................................................... 6,648,668 16,972,919
------------ ------------
NET ASSETS .......................................................... $ 66,484,567 $ 74,185,169
============ ============
+ Cost of Investments and Repurchase Agreements .......................... $ 59,961,420 $ 56,859,758
++ Cost of Affiliated Investments ......................................... $ -- $ --
* Represents margin deposits for futures contracts.
Amounts designated as "--" are either not applicable or less than $1.00.
The accompanying notes are an integral part of the financial statements.
116 HIGHMARK(R) FUNDS
TACTICAL
NYSE ARCA CAPITAL
LARGE CAP TECH 100 SMALL CAP VALUE GROWTH
VALUE INDEX CORE MOMENTUM ALLOCATION
FUND FUND FUND FUND FUND
------------- ------------- ------------ ------------- ------------
ASSETS:
Investments, at Value + .................. $ 65,504,567 $ 198,026,384 $ 63,383,500 $ 298,029,987 $ 4,679,225
Repurchase Agreements, at Value + ........ 527,157 -- 873,636 -- 709,947
Affiliated Investments, at Value ++ ...... -- -- -- -- 43,371,485
Cash ..................................... -- -- 82,200* -- 10,800*
Receivable for Investments Sold .......... -- 271,395 -- -- 363,172
Receivable for Fund Shares Sold .......... 57,332 199,674 -- 47,090 2,599
Accrued Income ........................... 146,597 61,160 46,031 125,706 6,687
Prepaid Expenses ......................... 20,588 7,594 26,687 36,415 2,742
Deferred Compensation .................... 5,116 14,939 5,037 22,691 3,754
Reclaims Receivable ...................... 19,077 30,544 -- 52,006 --
Variation Margin Receivable .............. -- -- 840 -- --
Due from Adviser, net .................... -- -- -- -- 26,425
------------- ------------- ------------ ------------- ------------
TOTAL ASSETS .......................... 66,280,434 198,611,690 64,417,931 298,313,895 49,176,836
------------- ------------- ------------ ------------- ------------
LIABILITIES:
Payable for Investments Purchased ........ -- -- -- 1,079,663 6,683
Payable for Fund Shares Redeemed ......... 464,470 144,503 122,183 277,593 72,021
Investment Adviser Fees Payable .......... 22,519 31,101 49,556 148,946 --
Administration Fees Payable .............. 8,410 24,546 8,280 37,299 6,171
Chief Compliance Officer Fees Payable .... 1,522 1,525 1,011 1,522 1,011
Custodian Fees Payable ................... 350 1,023 345 1,554 257
Audit Fees Payable ....................... 15,151 15,922 21,961 16,213 18,845
Deferred Compensation Payable ............ 5,116 14,939 5,037 22,691 3,754
Shareholder Servicing Fees Payable ....... 6,893 23,450 6,108 26,163 1,166
Transfer Agent Fees Payable .............. 15,597 81,785 8,917 43,108 19,272
Printing Fees Payable .................... 3,792 9,971 -- -- 1,332
Trustees Fees Payable .................... 375 1,982 155 2,842 355
Accrued Distribution Fees ................ 5,757 47,891 5,857 16,799 23,495
Variation Margin Payable ................. -- -- -- -- 750
Accrued Expenses and Other Payables ...... 5,109 1,675 7,384 6,902 4,270
------------- ------------- ------------ ------------- ------------
TOTAL LIABILITIES ..................... 555,061 400,313 236,794 1,681,295 159,382
------------- ------------- ------------ ------------- ------------
NET ASSETS $ 65,725,373 $ 198,211,377 $ 64,181,137 $ 296,632,600 $ 49,017,454
============= ============= ============ ============= ============
NET ASSETS:
Paid-in Capital (unlimited
authorized - no par value) ............ $ 114,078,596 $ 240,606,871 $ 68,189,658 $ 255,107,666 $ 59,508,847
Undistributed Net Investment
Income/(Accumulated Net Investment
Loss) ................................. (48,067) (129,055) 6,558 (172,612) 101,612
Accumulated Net Realized Gain (Loss)
on Investments, Investments in
Affiliated Funds, Futures
Contracts, Foreign Currency
Transactions and Capital Gain
Distributions Received ................ (47,657,518) (119,137,066) (12,480,535) 3,426,816 (13,584,440)
Net Unrealized Appreciation
(Depreciation) on Investments,
Investments in Affiliated Funds,
Futures Contracts and Foreign
Currency Transactions ................. (647,638) 76,870,627 8,465,456 38,270,730 2,991,435
------------- ------------- ------------ ------------- ------------
NET ASSETS ......................... $ 65,725,373 $ 198,211,377 $ 64,181,137 $ 296,632,600 $ 49,017,454
============= ============= ============ ============= ============
+ Cost of Investments and Repurchase
Agreements ............................ $ 66,679,065 $ 121,155,757 $ 55,817,696 $ 259,757,029 $ 5,440,459
++ Cost of Affiliated Investments ........ $ -- $ -- $ -- $ -- $ 40,319,640
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 117
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2012 (UNAUDITED)
LARGE CAP LARGE CAP
CORE EQUITY GROWTH
FUND FUND
----------- -----------
FIDUCIARY SHARES:
Net Assets .................................................. $62,249,701 $54,266,231
Shares of beneficial interest outstanding ................... 7,166,441 5,194,715
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (A) ... $ 8.69 $ 10.45
=========== ===========
CLASS A SHARES:
Net Assets .................................................. $ 3,134,038 $16,051,289
Shares of beneficial interest outstanding ................... 361,653 1,565,043
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE (A) ............. $ 8.67 $ 10.26
----------- -----------
Maximum Offering Price Per Share (B) ..................... $ 9.17 $ 10.86
=========== ===========
CLASS B SHARES:
Net Assets .................................................. $ 6,393 $ 1,047,538
Shares of beneficial interest outstanding ................... 754 109,429
NET ASSET VALUE AND OFFERING PRICE PER SHARE (A) ............... $ 8.48 $ 9.57
=========== ===========
CLASS C SHARES:
Net Assets .................................................. $ 1,094,435 $ 2,820,111
Shares of beneficial interest outstanding ................... 129,949 297,441
NET ASSET VALUE AND OFFERING PRICE PER SHARE (A) ............... $ 8.42 $ 9.48
=========== ===========
CLASS U SHARES:
Net Assets .................................................. N/A N/A
Shares of beneficial interest outstanding ................... N/A N/A
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ....... N/A N/A
=========== ===========
N/A Not Applicable
(A) Fiduciary Class and Class A Shares of certain funds have possible
redemption and exchange fees (See Note 2 in the notes to financial
statements). Class B and Class C Shares have contingent deferred sales
charges (See Note 3 in the notes to financial statements).
(B) The sales load for the class is 5.5%.
The accompanying notes are an integral part of the financial statements.
118 HIGHMARK(R) FUNDS
TACTICAL
NYSE ARCA CAPITAL
LARGE CAP TECH 100 SMALL CAP VALUE GROWTH
VALUE INDEX CORE MOMENTUM ALLOCATION
FUND FUND FUND FUND FUND
----------- ------------ ----------- ------------ -----------
FIDUCIARY SHARES:
Net Assets .................................................. $44,936,397 $ 9,949,212 $48,318,690 $127,469,150 $ 747,262
Shares of beneficial interest outstanding ................... 4,063,889 297,788 2,574,009 8,347,182 35,655
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (A) ... $ 11.06 $ 33.41 $ 18.77 $ 15.27 $ 20.96
=========== ============ =========== ============ ===========
CLASS A SHARES:
Net Assets .................................................. $18,401,420 $171,862,347 $11,770,678 $ 66,800,861 $27,131,934
Shares of beneficial interest outstanding ................... 1,659,695 5,180,097 632,888 4,387,032 1,295,656
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE (A) ............. $ 11.09 $ 33.18 $ 18.60 $ 15.23 $ 20.94
----------- ------------ ----------- ------------ -----------
Maximum Offering Price Per Share (B) ...................... $ 11.74 $ 35.11 $ 19.68 $ 16.12 $ 22.16
=========== ============ =========== ============ ===========
CLASS B SHARES:
Net Assets $ 450,635 $ 5,250,791 N/A $ 1,437,182 N/A
Shares of beneficial interest outstanding ................... 41,378 175,257 N/A 96,617 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE (A) ............... $ 10.89 $ 29.96 N/A $ 14.88 N/A
=========== ============ =========== ============ ===========
CLASS C SHARES:
Net Assets $ 1,936,921 $ 11,149,027 $ 4,091,769 $ 2,227,041 $21,138,258
Shares of beneficial interest outstanding ................... 178,551 365,412 225,906 150,391 1,018,932
NET ASSET VALUE AND OFFERING PRICE PER SHARE (A) ............... $ 10.85 30.51 $ 18.11 $ 14.81 $ 20.75
=========== ============ =========== ============ ===========
CLASS U SHARES:
Net Assets .................................................. N/A N/A N/A $ 98,698,366 N/A
Shares of beneficial interest outstanding ................... N/A N/A N/A 6,461,079 N/A
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ....... N/A N/A N/A $ 15.28 N/A
=========== ============ =========== ============ ===========
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 119
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2012 (UNAUDITED)
TACTICAL
GROWTH &
INCOME
ALLOCATION BOND
FUND FUND
------------ ------------
ASSETS:
Investments, at Value + .................................. $ 6,346,275 $381,762,373
Repurchase Agreements, at Value + ........................ 2,781,221 --
Affiliated Investments, at Value ++ ...................... 54,385,268 --
Cash ..................................................... 14,400* --
Receivable for Investments Sold .......................... -- 1,290,020
Receivable for Fund Shares Sold .......................... 8,525 859,391
Accrued Income ........................................... 17,263 3,078,506
Prepaid Expenses ......................................... 15,978 40,325
Deferred Compensation .................................... 4,843 29,476
Due from Adviser, net .................................... 19,440 --
------------ ------------
TOTAL ASSETS ........................................... 63,593,213 387,060,091
------------ ------------
LIABILITIES:
Payable for Investments Purchased ........................ 17,249 1,510,267
Payable for Fund Shares Redeemed ......................... 21,849 55,414
Income Distribution Payable .............................. 2 --
Investment Adviser Fees Payable .......................... -- 131,379
Administration Fees Payable .............................. 7,962 48,468
Chief Compliance Officer Fees Payable .................... 1,011 1,522
Custodian Fees Payable ................................... 332 2,019
Audit Fees Payable ....................................... 18,927 17,960
Deferred Compensation Payable ............................ 4,843 29,476
Shareholder Servicing Fees Payable ....................... 1,565 21,370
Transfer Agent Fees Payable .............................. 15,486 22,929
Printing Fees Payable .................................... 1,671 18,427
Trustees Fees Payable .................................... 458 1,887
Accrued Distribution Fees ................................ 29,388 14,958
Variation Margin Payable ................................. 1,000 --
Accrued Expenses and Other Payables ...................... 4,243 13,482
------------ ------------
TOTAL LIABILITIES ...................................... 125,986 1,889,558
------------ ------------
NET ASSETS .......................................... $ 63,467,227 $385,170,533
============ ============
NET ASSETS:
Paid-in Capital (unlimited authorized - no par value) .... $ 68,380,775 $360,564,112
Undistributed Net Investment Income/(Accumulated Net
Investment Loss) ....................................... 146,176 8,060
Accumulated Net Realized Gain (Loss) on Investments,
Investments in Affiliated Funds, Forward Foreign
Currency Contracts, Futures Contracts and Foreign
Currency Transactions .................................. (7,895,344) 1,060,910
Net Unrealized Appreciation (Depreciation) on
Investments, Investments in Affiliated Funds, Forward
Foreign Currency Contracts, Futures Contracts and
Foreign Currency Transactions .......................... 2,835,620 23,537,451
------------ ------------
Net Assets .......................................... $ 63,467,227 $385,170,533
============ ============
+ Cost of Investments and Repurchase Agreements ............ $ 9,087,599 $358,224,922
++ Cost of Affiliated Investments ........................... $ 51,577,381 $ --
* Represents margin deposits for futures contracts.
Amounts designated as "--" are either not applicable or less than $1.00.
The accompanying notes are an integral part of the financial statements.
120 HIGHMARK(R) FUNDS
CALIFORNIA NATIONAL
INTERMEDIATE INTERMEDIATE SHORT TERM WISCONSIN
TAX-FREE BOND TAX-FREE BOND BOND TAX-EXEMPT
FUND FUND FUND FUND
------------ ------------ ------------ ------------
ASSETS:
Investments, at Value + .................................. $246,120,643 $105,985,255 $136,931,554 $153,596,723
Repurchase Agreements, at Value + ........................ -- -- -- --
Affiliated Investments, at Value ++ ...................... -- -- -- --
Cash ..................................................... -- -- -- --
Receivable for Investments Sold .......................... -- -- 1,108,802 --
Receivable for Fund Shares Sold .......................... 790,784 571,000 452,335 110,805
Accrued Income ........................................... 3,155,715 1,267,115 1,123,788 1,852,151
Prepaid Expenses ......................................... 16,482 18,332 22,106 8,718
Deferred Compensation .................................... 18,921 8,316 10,604 11,851
Due from Adviser, net .................................... -- -- -- --
------------ ------------ ------------ ------------
TOTAL ASSETS .......................................... 250,102,545 107,850,018 139,649,189 155,580,248
------------ ------------ ------------ ------------
LIABILITIES:
Payable for Investments Purchased ........................ 116,030 170,832 553,765 --
Payable for Fund Shares Redeemed ......................... 535,688 150,037 47,280 --
Income Distribution Payable .............................. 429 -- 350 --
Investment Adviser Fees Payable .......................... 47,984 14,846 27,608 40,074
Administration Fees Payable .............................. 31,113 13,672 17,434 19,483
Chief Compliance Officer Fees Payable .................... 1,522 1,521 1,522 1,526
Custodian Fees Payable ................................... 1,296 570 726 812
Audit Fees Payable ....................................... 16,947 16,353 17,247 16,457
Deferred Compensation Payable ............................ 18,921 8,316 10,604 11,851
Shareholder Servicing Fees Payable ....................... 9,143 4,298 3,423 6,170
Transfer Agent Fees Payable .............................. 14,173 7,568 13,081 22,936
Printing Fees Payable .................................... 10,268 6,011 7,175 7,518
Trustees Fees Payable .................................... 1,195 468 1,340 294
Accrued Distribution Fees ................................ 35,983 8,987 18,195 38,521
Variation Margin Payable ................................. -- -- -- --
Accrued Expenses and Other Payables ...................... 11,920 9,807 9,885 11,611
------------ ------------ ------------ ------------
TOTAL LIABILITIES ..................................... 852,612 413,286 729,635 177,253
------------ ------------ ------------ ------------
NET ASSETS ......................................... $249,249,933 $107,436,732 $138,919,554 $155,402,995
============ ============ ============ ============
NET ASSETS:
Paid-in Capital (unlimited authorized - no par value) .... $233,651,629 $ 99,597,938 $137,699,174 $146,642,469
Undistributed Net Investment Income/(Accumulated Net
Investment Loss) ....................................... 13,637 1,921 (141,534) 6,908
Accumulated Net Realized Gain (Loss) on Investments,
Investments in Affiliated Funds, Forward Foreign
Currency Contracts, Futures Contracts and Foreign
Currency Transactions .................................. (230,604) 13,814 (31,090) (374,469)
Net Unrealized Appreciation (Depreciation) on
Investments, Investments in Affiliated Funds,
Forward Foreign Currency Contracts, Futures
Contracts and Foreign Currency Transactions ............ 15,815,271 7,823,059 1,393,004 9,128,087
------------ ------------ ------------ ------------
Net Assets ......................................... $249,249,933 $107,436,732 $138,919,554 $155,402,995
============ ============ ============ ============
+ Cost of Investments and Repurchase Agreements ............ $230,305,372 $ 98,162,196 $135,538,550 $144,468,636
++ Cost of Affiliated Investments ........................... $ -- $ -- $ -- $ --
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 121
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2012 (UNAUDITED)
TACTICAL
GROWTH &
INCOME
ALLOCATION BOND
FUND FUND
------------ ------------
FIDUCIARY SHARES:
Net Assets .................................................. $ 1,058,272 $334,287,010
Shares of beneficial interest outstanding ................... 49,146 29,273,950
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (A) ... $ 21.53 $ 11.42
============ ============
CLASS A SHARES:
Net Assets .................................................. $ 36,543,956 $ 39,518,374
Shares of beneficial interest outstanding ................... 1,703,317 3,520,102
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE (A) ............. $ 21.45 $ 11.23
------------ ------------
Maximum Offering Price Per Share (B) ..................... $ 22.70 $ 11.88
============ ============
CLASS B SHARES:
Net Assets .................................................. N/A $ 201,869
Shares of beneficial interest outstanding ................... N/A 18,052
NET ASSET VALUE AND OFFERING PRICE PER SHARE (A) ............... N/A $ 11.18
============ ============
CLASS C SHARES:
Net Assets .................................................. $ 25,864,999 $ 11,163,280
Shares of beneficial interest outstanding ................... 1,212,829 999,647
NET ASSET VALUE AND OFFERING PRICE PER SHARE (A) ............... $ 21.33 $ 11.17
============ ============
N/A Not Applicable
(A) Fiduciary Class and Class A Shares of certain funds have possible
redemption and exchange fees (See Note 2 in the notes to financial
statements). Class B and Class C Shares have contingent deferred sales
charges (See Note 3 in the notes to financial statements).
(B) The sales load for the Tactical Growth & Income Allocation Fund is 5.5%.
The sales load for the Bond Fund, California Intermediate Tax-Free Bond
Fund, National Intermediate Tax-Free Bond Fund, Short Term Bond Fund and
Wisconsin Tax-Exempt Fund is 2.25%.
The accompanying notes are an integral part of the financial statements.
122 HIGHMARK(R) FUNDS
CALIFORNIA NATIONAL
INTERMEDIATE INTERMEDIATE SHORT TERM WISCONSIN
TAX-FREE BOND TAX-FREE BOND BOND TAX-EXEMPT
FUND FUND FUND FUND
------------- ------------- ------------ ------------
FIDUCIARY SHARES:
Net Assets .................................................. $ 134,779,199 $ 77,530,423 $ 94,391,188 $ 438,707
Shares of beneficial interest outstanding ................... 12,760,241 6,585,814 9,364,594 40,452
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (A) ... $ 10.56 $ 11.77 $ 10.08 $ 10.85
============= ============= ============ ============
CLASS A SHARES:
Net Assets .................................................. $ 83,686,203 $ 23,198,483 $ 23,374,307 $140,020,422
Shares of beneficial interest outstanding ................... 7,963,499 1,971,580 2,322,239 12,908,096
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE (A) ............. $ 10.51 $ 11.77 $ 10.07 $ 10.85
------------- ------------- ------------ ------------
Maximum Offering Price Per Share (B) ..................... $ 11.12 $ 12.46 $ 10.66 $ 11.48
============= ============= ============ ============
CLASS B SHARES:
Net Assets .................................................. $ 87 N/A N/A $ 1,352,545
Shares of beneficial interest outstanding ................... 8 N/A N/A 124,806
NET ASSET VALUE AND OFFERING PRICE PER SHARE (A) ............... $ 10.54 N/A N/A $ 10.84
============= ============= ============ ============
CLASS C SHARES:
Net Assets .................................................. $ 30,784,444 $ 6,707,826 $ 21,154,059 $ 13,591,321
Shares of beneficial interest outstanding ................... 2,939,600 569,555 2,076,383 1,254,760
NET ASSET VALUE AND OFFERING PRICE PER SHARE (A) ............... $ 10.47 $ 11.78 $ 10.19 $ 10.83
============= ============= ============ ============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 123
STATEMENTS OF OPERATIONS
FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED)
COGNITIVE
BALANCED VALUE
FUND FUND
------------- -------------
Interest Income ...................................................................... $ 145,642 $ 397
Securities Lending Income ............................................................ -- --
Dividend Income ...................................................................... 125,269 743,735
Less: Foreign Taxes Withheld ......................................................... (638) (236)
------------- -------------
Total Investment Income ....................................................... 270,273 743,896
------------- -------------
Expenses:
Investment Adviser Fees ........................................................... 70,254 312,236
Shareholder Servicing Fees Fiduciary Shares ....................................... 20,798 7,182
Shareholder Servicing Fees Class A Shares ......................................... 7,341 868
Shareholder Servicing Fees Class B Shares ......................................... 122 --
Administration Fees ............................................................... 17,553 62,411
Custodian Fees .................................................................... 732 2,602
Trustees Fees ..................................................................... 897 3,559
Chief Compliance Officer Fees ..................................................... 3,713 3,713
Distribution Fees Class A Shares .................................................. 7,341 868
Distribution Fees Class B Shares .................................................. 367 --
Distribution Fees Class C Shares .................................................. 4,045 1,924
Registration Fees ................................................................. 23,597 19,563
Transfer Agent Fees ............................................................... 10,683 14,100
Printing Fees ..................................................................... 2,481 9,283
Audit Fees ........................................................................ 13,153 12,192
Legal Fees ........................................................................ 1,697 5,423
Miscellaneous Fees ................................................................ 15,551 13,109
------------- -------------
Total Expenses ................................................................ 200,325 469,033
------------- -------------
Less: Waivers and Reimbursements
Investment Adviser Fee Waiver ................................................. (61,955) (12,733)
Shareholder Servicing Fee Waiver - Fiduciary Shares ........................... (8,319) (3,700)
Shareholder Servicing Fee Waiver - Class A Shares ............................. (2,936) (347)
Reimbursement of Expenses by Adviser .......................................... -- --
------------- -------------
Total Waivers and Reimbursements ..................................................... (73,210) (16,780)
------------- -------------
Total Net Expenses ................................................................... 127,115 452,253
------------- -------------
Net Investment Income (Loss) ......................................................... 143,158 291,643
------------- -------------
Net Realized Gain (Loss) on Investments .............................................. 733,694 (6,296,695)
Net Realized Gain (Loss) on Foreign Currency Transactions ............................ -- --
Net Realized Gain (Loss) on Futures Contracts (1) .................................... -- --
Change in Unrealized Appreciation (Depreciation) on Investments ...................... (402,666) 6,990,855
Change in Unrealized Appreciation (Depreciation) on Foreign Currency Transactions .... -- --
Change in Unrealized Appreciation (Depreciation) on Foreign Currency Contracts (2) ... -- --
Change in Unrealized Appreciation (Depreciation) on Futures Contracts (1) ............ -- --
------------- -------------
Net Realized and Unrealized Gain (Loss) on Investments ............................... 331,028 694,160
------------- -------------
Increase (Decrease) in Net Assets Resulting from Operations .......................... $ 474,186 $ 985,803
============= =============
Amounts designated as "--" are either not applicable or less than $1.00.
(1) The primary risk exposure is the price movement of the underlying basket
of equity securities (see Note 2).
(2) The primary risk exposure is foreign exchange contracts (see Note 2).
The accompanying notes are an integral part of the financial statements.
124 HIGHMARK(R) FUNDS
GENEVA GENEVA
ENHANCED EQUITY MID CAP SMALL CAP INTERNATIONAL
GROWTH INCOME GROWTH GROWTH OPPORTUNITIES
FUND FUND FUND FUND FUND
---------- ----------- ----------- ----------- -------------
Interest Income .............................................. $ 383 $ -- $ -- $ -- $ 1,124
Securities Lending Income .................................... -- -- -- -- 10,404
Dividend Income .............................................. 338,358 342,039 1,196,138 40,568 2,449,861
Less: Foreign Taxes Withheld ................................. (2,115) (2,583) -- -- (143,839)
---------- ----------- ----------- ----------- -------------
Total Investment Income ............................... 336,626 339,456 1,196,138 40,568 2,317,550
---------- ----------- ----------- ----------- -------------
Expenses:
Investment Adviser Fees ................................... 301,212 54,171 1,758,687 129,654 909,843
Shareholder Servicing Fees Fiduciary Shares ............... 2,544 7,695 304,232 18,962 95,259
Shareholder Servicing Fees Class A Shares ................. 2,383 12,016 253,214 10,569 4,976
Shareholder Servicing Fees Class B Shares ................. -- 1,807 6,104 -- --
Administration Fees ....................................... 60,207 14,766 364,043 19,438 154,076
Custodian Fees ............................................ 2,510 615 15,176 969 56,709
Trustees Fees ............................................. 3,694 888 14,057 1,032 8,443
Chief Compliance Officer Fees ............................. 3,713 3,717 3,717 3,718 3,713
Distribution Fees Class A Shares .......................... 2,383 12,016 253,214 10,569 4,976
Distribution Fees Class B Shares .......................... -- 5,422 18,313 -- --
Distribution Fees Class C Shares .......................... 1,080 12,421 174,027 11,529 8,146
Registration Fees ......................................... 20,059 23,958 33,459 20,406 19,912
Transfer Agent Fees ....................................... 13,644 19,213 169,920 9,343 29,613
Printing Fees ............................................. 11,400 1,792 36,916 2,542 26,527
Audit Fees ................................................ 12,209 11,982 13,369 12,027 20,635
Legal Fees ................................................ 6,035 1,393 21,548 1,794 17,272
Miscellaneous Fees ........................................ 12,282 8,867 14,055 8,615 35,546
---------- ----------- ----------- ----------- -------------
Total Expenses ........................................ 455,355 192,739 3,454,051 261,167 1,395,646
---------- ----------- ----------- ----------- -------------
Less: Waivers and Reimbursements
Investment Adviser Fee Waiver ......................... (25,268) (54,171) (65,284) (51,360) --
Shareholder Servicing Fee Waiver - Fiduciary Shares ... (1,917) (3,448) (124,443) (9,371) (46,277)
Shareholder Servicing Fee Waiver - Class A Shares ..... (953) (4,806) (101,286) (4,227) (3,962)
Reimbursement of Expenses by Adviser .................. -- (13,322) -- -- --
---------- ----------- ----------- ----------- -------------
Total Waivers and Reimbursements ............................. (28,138) (75,747) (291,013) (64,958) (50,239)
---------- ----------- ----------- ----------- -------------
Total Net Expenses ........................................... 427,217 116,992 3,163,038 196,209 1,345,407
---------- ----------- ----------- ----------- -------------
Net Investment Income (Loss) ................................. (90,591) 222,464 (1,966,900) (155,641) 972,143
---------- ----------- ----------- ----------- -------------
Net Realized Gain (Loss) on Investments ...................... 2,182,805 105,666 1,076,381 (15,287) (12,145,908)
Net Realized Gain (Loss) on Foreign Currency Transactions .... -- -- -- -- (152,605)
Net Realized Gain (Loss) on Futures Contracts (1) ............ -- (10,258) -- -- --
Change in Unrealized Appreciation (Depreciation) on
Investments ............................................... (32,591) 761,405 29,701,889 1,225,212 (22,529,144)
Change in Unrealized Appreciation (Depreciation) on Foreign
Currency Transactions ..................................... -- -- -- -- (13,218)
Change in Unrealized Appreciation (Depreciation) on Foreign
Currency Contracts (2) .................................... -- -- -- -- (135,696)
Change in Unrealized Appreciation (Depreciation) on Futures
Contracts (1) ............................................. -- 4,693 -- -- --
---------- ----------- ----------- ----------- -------------
Net Realized and Unrealized Gain (Loss) on Investments ....... 2,150,214 861,506 30,778,270 1,209,925 (34,976,571)
---------- ----------- ----------- ----------- -------------
Increase (Decrease) in Net Assets Resulting from Operations .. $2,059,623 $ 1,083,970 $28,811,370 $ 1,054,284 $ (34,004,428)
========== =========== =========== =========== =============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 125
STATEMENTS OF OPERATIONS
FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED)
LARGE CAP LARGE CAP
CORE EQUITY GROWTH
FUND FUND
----------- -----------
Interest Income ....................................................................... $ 278 $ --
Income from Investments in Affiliated Funds ........................................... -- --
Dividend Income ....................................................................... 571,759 484,155
Less: Foreign Taxes Withheld .......................................................... -- (3,109)
----------- -----------
Total Investment Income ........................................................ 572,037 481,046
----------- -----------
Expenses:
Investment Adviser Fees ............................................................ 177,731 217,869
Shareholder Servicing Fees Fiduciary Shares ........................................ 69,540 66,468
Shareholder Servicing Fees Class A Shares .......................................... 3,621 19,197
Shareholder Servicing Fees Class B Shares .......................................... 70 1,779
Administration Fees ................................................................ 44,411 54,435
Custodian Fees ..................................................................... 1,940 2,269
Trustees Fees ...................................................................... 1,884 2,692
Chief Compliance Officer Fees ...................................................... 3,713 3,713
Distribution Fees Class A Shares ................................................... 3,621 19,197
Distribution Fees Class B Shares ................................................... 209 5,338
Distribution Fees Class C Shares ................................................... 3,297 13,339
Registration Fees .................................................................. 25,296 24,459
License Fees ....................................................................... -- --
Transfer Agent Fees ................................................................ 10,994 35,764
Printing Fees ...................................................................... 5,588 7,593
Audit Fees ......................................................................... 12,093 12,195
Legal Fees ......................................................................... 3,891 5,171
Miscellaneous Fees ................................................................. 10,676 10,195
----------- -----------
Total Expenses ................................................................. 378,575 501,673
----------- -----------
Less: Waivers and Reimbursements
Investment Adviser Fee Waiver .................................................. (51,536) (60,446)
Shareholder Servicing Fee Waiver - Fiduciary Shares ............................ (39,921) (30,550)
Shareholder Servicing Fee Waiver - Class A Shares .............................. (1,448) (7,679)
Reimbursement of Expenses by Adviser ........................................... -- --
----------- -----------
Total Waivers and Reimbursements ...................................................... (92,905) (98,675)
----------- -----------
Total Net Expenses .................................................................... 285,670 402,998
----------- -----------
Net Investment Income (Loss) .......................................................... 286,367 78,048
----------- -----------
Net Realized Gain (Loss) on Investments ............................................... (217,509) 1,473,562
Net Realized Gain (Loss) on Investments in Affiliated Funds ........................... -- --
Net Realized Gain (Loss) on Foreign Currency Transactions ............................. -- --
Net Realized Gain (Loss) on Futures Contracts (1) ..................................... (129,221) --
Capital Gain Distributions Received from Affiliated Funds ............................. -- --
Change in Unrealized Appreciation (Depreciation) on Investments ....................... 1,586,999* (784,416)
Change in Unrealized Appreciation (Depreciation) on Investments in Affiliated Funds ... -- --
Change in Unrealized Appreciation (Depreciation) on Foreign Currency Transactions ..... -- --
Change in Unrealized Appreciation (Depreciation) on Futures Contracts (1) ............. 31,875 --
----------- -----------
Net Realized and Unrealized Gain (Loss) on Investments ................................ 1,272,144 689,146
----------- -----------
Increase (Decrease) in Net Assets Resulting from Operations ........................... $ 1,558,511 $ 767,194
=========== ===========
* Change in unrealized appreciation (depreciation) does not include
unrealized appreciation (depreciation) in connection with the
Reorganization (see Note 8 in the notes to financial statements).
Amounts designated as "--" are either not applicable or less than $1.00.
(1) The primary risk exposure is the price movement of the underlying basket
of equity securities (see Note 2).
The accompanying notes are an integral part of the financial statements.
126 HIGHMARK(R) FUNDS
TACTICAL
NYSE ARCA CAPITAL
LARGE CAP TECH 100 SMALL CAP VALUE GROWTH
VALUE INDEX CORE MOMENTUM ALLOCATION
FUND FUND FUND FUND FUND
----------- ----------- ----------- ------------ ----------
Interest Income ................................. $ 305 $ -- $ 351 $ -- $ 139
Income from Investments in Affiliated Funds ..... -- -- -- -- 354,880
Dividend Income ................................. 853,561 938,923 330,624 3,435,826 113,453
Less: Foreign Taxes Withheld .................... (41,702) -- (1,453) (29,012) --
----------- ----------- ----------- ------------ ----------
Total Investment Income .................. 812,164 938,923 329,522 3,406,814 468,472
----------- ----------- ----------- ------------ ----------
Expenses:
Investment Adviser Fees ...................... 213,328 336,584 218,646 850,594 38,275
Shareholder Servicing Fees Fiduciary Shares .. 63,693 10,553 47,063 252,023 566
Shareholder Servicing Fees Class A Shares .... 22,143 207,792 7,794 80,116 31,237
Shareholder Servicing Fees Class B Shares .... 700 7,159 -- 2,129 --
Administration Fees .......................... 53,298 143,073 34,512 212,526 32,791
Custodian Fees ............................... 5,740 7,009 1,455 8,919 1,380
Trustees Fees ................................ 2,576 7,211 1,127 10,577 1,584
Chief Compliance Officer Fees ................ 3,713 3,717 3,713 3,713 3,713
Distribution Fees Class A Shares ............. 22,143 207,792 7,794 80,116 31,237
Distribution Fees Class B Shares ............. 2,099 21,477 -- 6,387 --
Distribution Fees Class C Shares ............. 9,402 52,353 10,726 10,863 91,504
Registration Fees ............................ 24,427 25,366 17,035 26,748 19,919
License Fees ................................. -- 38,175 -- -- --
Transfer Agent Fees .......................... 28,420 140,698 6,477 74,839 32,069
Printing Fees ................................ 7,318 20,446 2,817 29,584 4,220
Audit Fees ................................... 12,169 12,589 12,003 13,001 8,863
Legal Fees ................................... 5,552 14,035 2,230 17,467 3,021
Miscellaneous Fees ........................... 10,934 14,221 11,360 15,819 7,560
----------- ----------- ----------- ------------ ----------
Total Expenses ........................... 487,655 1,270,250 384,752 1,695,421 307,939
----------- ----------- ----------- ------------ ----------
Less: Waivers and Reimbursements
Investment Adviser Fee Waiver ............ (65,261) (114,154) (30,587) (30,612) (38,275)
Shareholder Servicing Fee Waiver -
Fiduciary Shares ...................... (36,692) (5,001) (28,083) (103,489) (453)
Shareholder Servicing Fee Waiver - Class A
Shares ................................ (8,857) (83,117) (3,118) (32,047) (24,990)
Reimbursement of Expenses by Adviser ..... -- -- -- -- (54,972)
----------- ----------- ----------- ------------ ----------
Total Waivers and Reimbursements ................ (110,810) (202,272) (61,788) (166,148) (118,690)
----------- ----------- ----------- ------------ ----------
Total Net Expenses .............................. 376,845 1,067,978 322,964 1,529,273 189,249
----------- ----------- ----------- ------------ ----------
Net Investment Income (Loss) .................... 435,319 (129,055) 6,558 1,877,541 279,223
----------- ----------- ----------- ------------ ----------
Net Realized Gain (Loss) on Investments ......... (2,878,325) 3,916,715 (7,009,112) 7,744,060 310,093
Net Realized Gain (Loss) on Investments in
Affiliated Funds ............................. -- -- -- -- (388,975)
Net Realized Gain (Loss) on Foreign Currency
Transactions ................................. (2,458) -- -- 599 --
Net Realized Gain (Loss) on Futures
Contracts (1) ................................ -- (49,408) (82,542) -- 94,168
Capital Gain Distributions Received from
Affiliated Funds ............................. -- -- -- -- 180,429
Change in Unrealized Appreciation (Depreciation)
on Investments ............................... (1,655,650) 1,857,830 7,754,159* (10,885,227) (975,457)*
Change in Unrealized Appreciation (Depreciation)
on Investments in Affiliated Funds ........... -- -- -- -- (140,801)
Change in Unrealized Appreciation (Depreciation)
on Foreign Currency Transactions ............. (2,486) -- -- (5,746) --
Change in Unrealized Appreciation (Depreciation)
on Futures Contracts (1) ..................... -- 25,355 26,400 -- (9,123)
----------- ----------- ----------- ------------ ----------
Net Realized and Unrealized Gain (Loss) on
Investments .................................. (4,538,919) 5,750,492 688,905 (3,146,314) (929,666)
----------- ----------- ----------- ------------ ----------
Increase (Decrease) in Net Assets Resulting from
Operations ................................... $(4,103,600) $ 5,621,437 $ 695,463 $ (1,268,773) $ (650,443)
=========== =========== =========== ============ ==========
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 127
STATEMENTS OF OPERATIONS
FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED)
TACTICAL
GROWTH &
INCOME
ALLOCATION BOND
FUND FUND
----------- -----------
Interest Income ....................................................................... $ 473 $ 7,795,468
Income from Investments in Affiliated Funds ........................................... 506,897 --
Dividend Income ....................................................................... 160,995 1,754
----------- -----------
Total Investment Income ........................................................ 668,365 7,797,222
----------- -----------
Expenses:
Investment Adviser Fees ............................................................ 48,386 940,289
Shareholder Servicing Fees Fiduciary Shares ........................................ 1,217 417,857
Shareholder Servicing Fees Class A Shares .......................................... 39,876 40,447
Shareholder Servicing Fees Class B Shares .......................................... -- 375
Administration Fees ................................................................ 41,454 281,924
Custodian Fees ..................................................................... 1,728 11,754
Trustees Fees ...................................................................... 1,951 11,824
Chief Compliance Officer Fees ...................................................... 3,713 3,713
Distribution Fees Class A Shares ................................................... 39,876 40,447
Distribution Fees Class B Shares ................................................... -- 1,125
Distribution Fees Class C Shares ................................................... 112,117 34,395
Registration Fees .................................................................. 20,154 25,263
Transfer Agent Fees ................................................................ 25,666 43,797
Printing Fees ...................................................................... 5,121 37,669
Audit Fees ......................................................................... 8,923 14,635
Legal Fees ......................................................................... 3,651 22,905
Miscellaneous Fees ................................................................. 7,625 29,581
----------- -----------
Total Expenses ................................................................. 361,458 1,958,000
----------- -----------
Less: Waivers and Reimbursements
Investment Adviser Fee Waiver .................................................. (48,386) (114,183)
Shareholder Servicing Fee Waiver - Fiduciary Shares ............................ (974) (305,359)
Shareholder Servicing Fee Waiver - Class A Shares .............................. (31,901) (29,122)
Reimbursement of Expenses by Adviser ........................................... (43,951) --
----------- -----------
Total Waivers and Reimbursements ...................................................... (125,212) (448,664)
----------- -----------
Total Net Expenses .................................................................... 236,246 1,509,336
----------- -----------
Net Investment Income ................................................................. 432,119 6,287,886
----------- -----------
Net Realized Gain (Loss) on Investments ............................................... 342,715 1,864,012
Net Realized Gain on Investments in Affiliated Funds .................................. 2,215,706 --
Net Realized Gain on Futures Contracts (1) ............................................ 113,372 --
Capital Gain Distributions Received ................................................... -- --
Capital Gain Distributions Received from Affiliated Funds ............................. 282,432 --
Change in Unrealized Appreciation (Depreciation) on Investments ....................... (939,351)* 4,970,326
Change in Unrealized Appreciation (Depreciation) on Investments in Affiliated Funds ... (2,482,322) --
Change in Unrealized Appreciation (Depreciation) on Futures Contracts (1) ............. (12,164) --
----------- -----------
Net Realized and Unrealized Gain (Loss) on Investments ................................ (479,612) 6,834,338
----------- -----------
Increase (Decrease) in Net Assets Resulting from Operations ........................... $ (47,493) $13,122,224
=========== ===========
* Change in unrealized appreciation (depreciation) does not include
unrealized appreciation (depreciation) in connection with the
Reorganization (see Note 8 in the notes to financial statements).
Amounts designated as "--" are either not applicable or less than $1.00.
(1) The primary risk exposure is the price movement of the underlying basket
of equity securities (see Note 2).
The accompanying notes are an integral part of the financial statements.
128 HIGHMARK(R) FUNDS
CALIFORNIA NATIONAL
INTERMEDIATE INTERMEDIATE SHORT TERM WISCONSIN
TAX-FREE BOND TAX-FREE BOND BOND TAX-EXEMPT
FUND FUND FUND FUND
------------- ------------- ------------- -------------
Interest Income ................................. $ 3,655,105 $ 1,741,518 $ 1,840,397 $ 3,118,174
Income from Investments in Affiliated Funds ..... -- -- -- --
Dividend Income ................................. 273 70 671 2,015
------------- ------------- ------------- -------------
Total Investment Income .................. 3,655,378 1,741,588 1,841,068 3,120,189
------------- ------------- ------------- -------------
Expenses:
Investment Adviser Fees ...................... 585,699 268,291 270,945 373,420
Shareholder Servicing Fees Fiduciary Shares .. 160,067 97,680 114,151 433
Shareholder Servicing Fees Class A Shares .... 100,084 30,130 29,097 169,231
Shareholder Servicing Fees Class B Shares .... 59 -- -- 2,103
Administration Fees .......................... 175,609 80,440 101,545 111,962
Custodian Fees ............................... 7,321 3,353 4,233 4,668
Trustees Fees ................................ 7,241 3,291 4,964 4,155
Chief Compliance Officer Fees ................ 3,713 3,713 3,713 3,717
Distribution Fees Class A Shares ............. 100,084 30,130 29,097 169,231
Distribution Fees Class B Shares ............. 177 -- -- 6,308
Distribution Fees Class C Shares ............. 97,918 19,007 78,280 44,830
Registration Fees ............................ 17,982 20,984 23,814 5,746
Transfer Agent Fees .......................... 27,558 13,183 24,936 40,308
Printing Fees ................................ 22,085 11,264 14,094 14,747
Audit Fees ................................... 13,913 13,474 13,768 13,634
Legal Fees ................................... 14,010 6,950 8,493 11,272
Miscellaneous Fees ........................... 27,005 20,761 22,668 24,481
------------- ------------- ------------- -------------
Total Expenses ........................... 1,360,525 622,651 743,798 1,000,246
------------- ------------- ------------- -------------
Less: Waivers and Reimbursements
Investment Adviser Fee Waiver ............ (328,151) (193,511) (75,872) (160,006)
Shareholder Servicing Fee Waiver -
Fiduciary Shares ...................... (128,054) (78,144) (101,090) (347)
Shareholder Servicing Fee Waiver - Class A
Shares ................................ (80,067) (24,104) (23,277) (135,385)
Reimbursement of Expenses by Adviser ..... -- -- -- --
------------- ------------- ------------- -------------
Total Waivers and Reimbursements ................ (536,272) (295,759) (200,239) (295,738)
------------- ------------- ------------- -------------
Total Net Expenses .............................. 824,253 326,892 543,559 704,508
------------- ------------- ------------- -------------
Net Investment Income ........................... 2,831,125 1,414,696 1,297,509 2,415,681
------------- ------------- ------------- -------------
Net Realized Gain (Loss) on Investments ......... (120,995) 13,814 202,336 64,201
Net Realized Gain on Investments in Affiliated
Funds ........................................ -- -- -- --
Net Realized Gain on Futures Contracts (1) ...... -- -- -- --
Capital Gain Distributions Received ............. 6,138 -- -- --
Capital Gain Distributions Received from
Affiliated Funds ............................. -- -- -- --
Change in Unrealized Appreciation (Depreciation)
on Investments ............................... 8,655,957 3,177,097 (319,392) 6,632,699
Change in Unrealized Appreciation (Depreciation)
on Investments in Affiliated Funds ........... -- -- -- --
Change in Unrealized Appreciation (Depreciation)
on Futures Contracts (1) ..................... -- -- -- --
------------- ------------- ------------- -------------
Net Realized and Unrealized Gain (Loss) on
Investments .................................. 8,541,100 3,190,911 (117,056) 6,696,900
------------- ------------- ------------- -------------
Increase (Decrease) in Net Assets Resulting from
Operations ................................... $ 11,372,225 $ 4,605,607 $ 1,180,453 $ 9,112,581
============= ============= ============= =============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 129
STATEMENTS OF CHANGES IN NET ASSETS
BALANCED COGNITIVE VALUE ENHANCED GROWTH
FUND FUND FUND
------------------------- --------------------------- ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
------------------------- ------------ ------------ ----------- -----------
Investment Activities:
Net Investment Income (Loss) ............. $ 143,158 $ 285,151 $ 291,643 $ 878,936 $ (90,591) $ (194,706)
Net Realized Gain (Loss) on Investments,
Foreign Currency Transactions,
Foreign Currency Contracts and
Futures Contracts ...................... 733,694 1,629,414 (6,296,695) 20,628,659 2,182,805 2,495,354
Change in Unrealized Appreciation
(Depreciation) on Investments, Foreign
Currency Transactions, Foreign Currency
Contracts and Futures Contracts ........ (402,666) 1,063,326 6,990,855 (2,268,107) (32,591) 14,025,216
----------- ----------- ------------ ------------ ----------- -----------
Net Increase (Decrease) in Net Assets
Resulting From Operations .............. 474,186 2,977,891 985,803 19,239,488 2,059,623 16,325,864
----------- ----------- ------------ ------------ ----------- -----------
Dividends and Distributions to Shareholders:
Net Investment Income:
Fiduciary Shares ....................... (104,186) (299,157) (50,485) (37,861) -- --
Class A Shares ......................... (28,484) (84,654) (2,869) (9,261) -- --
Class B Shares ......................... (80) (3,030) -- -- -- --
Class C Shares ......................... (1,062) (6,439) -- (1,346) -- --
Class M Shares ......................... -- -- (763,086) (1,174,219) -- --
Capital Gains:
Fiduciary Shares ....................... -- -- -- -- -- --
Class A Shares ......................... -- -- -- -- -- --
Class B Shares ......................... -- -- -- -- -- --
Class C Shares ......................... -- -- -- -- -- --
----------- ----------- ------------ ------------ ----------- -----------
Total Dividends and Distributions .... (133,812) (393,280) (816,440) (1,222,687) -- --
----------- ----------- ------------ ------------ ----------- -----------
Net Increase (Decrease) in Net Assets From:
Share Transactions (1) ................. (2,377,609) (1,165,270) (7,625,688) 2,713,496 (10,409,280) 5,539,967
Redemption Fees (Note 2) ............... -- -- 610 11 -- --
----------- ----------- ------------ ------------ ----------- -----------
Total Increase (Decrease) in Net
Assets ............................. (2,037,235) 1,419,341 (7,455,715) 20,730,308 (8,349,657) 21,865,831
----------- ----------- ------------ ------------ ----------- -----------
Net Assets:
Beginning of Period ...................... 25,592,894 24,173,553 94,525,520 73,795,212 90,407,437 68,541,606
----------- ----------- ------------ ------------ ----------- -----------
End of Period ............................ $23,555,659 $25,592,894 $ 87,069,805 $ 94,525,520 $82,057,780 $90,407,437
=========== =========== ============ ============ =========== ===========
Undistributed Net Investment Income/
(Accumulated Net Investment Loss) ........ $ 22,310 $ 12,964 $ (264,602) $ 260,195 $ (150,670) $ (60,079)
=========== =========== ============ ============ =========== ===========
Amounts designated as "--" are either not applicable or less than $1.00.
(1) For details on share transaction by class, see statements of changes in net
assets - capital stock activity on pages 150-159.
The accompanying notes are an integral part of the financial statements.
130 HIGHMARK(R) FUNDS
GENEVA
EQUITY INCOME GENEVA MID CAP GROWTH SMALL CAP GROWTH INTERNATIONAL OPPORTUNITIES
FUND FUND FUND FUND
------------------------ ------------------------- ----------------------- ---------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
------------------------ ------------------------- ----------------------- ---------------------------
Investment Activities:
Net Investment Income
(Loss) ................ $ 222,464 $ 451,702 $ (1,966,900)$ (3,043,801)$ (155,641)$ (199,858)$ 972,143 $ 4,362,210
Net Realized Gain (Loss)
on Investments, Foreign
Currency Transactions,
Foreign Currency
Contracts and Futures
Contracts ............. 95,408 1,040,035 1,076,381 13,116,117 (15,287) 1,297,244 (12,298,513) 28,470,335
Change in Unrealized
Appreciation
(Depreciation) on
Investments, Foreign
Currency Transactions,
Foreign Currency
Contracts and Futures
Contracts ............. 766,098 1,146,910 29,701,889 47,839,217 1,225,212 2,220,064 (22,678,058) 10,771,070
------------ ----------- ------------ ------------ ----------- ----------- ------------ ------------
Net Increase (Decrease)
in Net Assets
Resulting
From Operations ....... 1,083,970 2,638,647 28,811,370 57,911,533 1,054,284 3,317,450 (34,004,428) 43,603,615
------------ ----------- ------------ ------------ ----------- ----------- ------------ ------------
Dividends and Distributions
to Shareholders:
Net Investment Income:
Fiduciary Shares ...... (87,773) (89,195) -- -- -- -- (2,207,340) (1,660,836)
Class A Shares ........ (123,682) (299,908) -- -- -- -- (99,266) (115,447)
Class B Shares ........ (13,795) (43,296) -- -- -- -- -- --
Class C Shares ........ (24,368) (57,629) -- -- -- -- (24,782) (27,269)
Class M Shares ........ -- -- -- -- -- -- (3,847,311) (3,099,328)
Capital Gains:
Fiduciary Shares ...... -- -- (5,139,073) (50,987) (567,521) (324,668) -- --
Class A Shares ........ -- -- (4,256,709) (272,612) (274,486) (158,545) -- --
Class B Shares ........ -- -- (107,568) (9,247) -- -- -- --
Class C Shares ........ -- -- (790,213) (33,609) (78,033) (13,819) -- --
------------ ----------- ------------ ------------ ----------- ----------- ------------ ------------
Total Dividends and
Distributions ..... (249,618) (490,028) (10,293,563) (366,455) (920,040) (497,032) (6,178,699) (4,902,880)
------------ ----------- ------------ ------------ ----------- ----------- ------------ ------------
Net Increase (Decrease)
in Net Assets From:
Share
Transactions (1) .... 2,895,699 2,654,507 128,292,094 170,567,798 6,935,573 11,057,444 (7,414,933) (8,581,549)
Redemption Fees
(Note 2) ............ -- -- -- -- 455 875 488 135
------------ ----------- ------------ ------------ ----------- ----------- ------------ ------------
Total Increase
(Decrease) in Net
Assets ............ 3,730,051 4,803,126 146,809,901 228,112,876 7,070,272 13,878,737 (47,597,572) 30,119,321
------------ ----------- ------------ ------------ ----------- ----------- ------------ ------------
Net Assets:
Beginning of Period ..... 18,794,621 13,991,495 449,730,496 221,617,620 23,611,047 9,732,310 251,344,795 221,225,474
------------ ----------- ------------ ------------ ----------- ----------- ------------ ------------
End of Period ........... $ 22,524,672 $18,794,621 $596,540,397 $449,730,496 $30,681,319 $23,611,047 $203,747,223 $251,344,795
============ =========== ============ ============ =========== =========== ============ ============
Undistributed Net Investment
Income/(Accumulated Net
Investment Loss ....... $ (25,440)$ 1,714 $ (1,966,900)$ -- $ (155,641)$ -- $ (823,431)$ 4,383,125
============ =========== ============ ============ =========== =========== ============ ============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 131
STATEMENTS OF CHANGES IN NET ASSETS
LARGE CAP CORE EQUITY LARGE CAP GROWTH LARGE CAP VALUE
FUND FUND FUND
---------------------------- ---------------------------- -----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
---------------------------- ---------------------------- -----------------------------
Investment Activities:
Net Investment Income (Loss) ..... $ 286,367 $ 651,647 $ 78,048 $ 88,925 $ 435,319 $ 1,041,573
Net Realized Gain (Loss) on
Investments, Affiliated Funds,
Foreign Currency Transactions,
Futures Contracts and Capital
Gains Distributions Received ... (346,730) 4,922,475 1,473,562 6,490,574 (2,880,783) 2,608,005
Change in Unrealized Appreciation
(Depreciation) on Investments,
Affiliated Funds, Foreign
Currency Transactions and
Futures Contracts .............. 1,618,874 5,078,473 (784,416) 8,714,295 (1,658,136) 10,754,053
------------ ------------- ------------ ------------- ------------- -------------
Net Increase (Decrease) in Net
Assets Resulting From
Operations ..................... 1,558,511 10,652,595 767,194 15,293,794 (4,103,600) 14,403,631
------------ ------------- ------------ ------------- ------------- -------------
Dividends and Distributions
to Shareholders:
Net Investment Income:
Fiduciary Shares ............. (300,554) (668,420) (88,008) (793,194) (379,482) (1,707,470)
Class A Shares ............... (11,618) (24,627) -- (159,002) (97,564) (393,474)
Class B Shares ............... (45) (621) -- -- (699) (13,709)
Class C Shares ............... (1,224) (1,319) -- (10,657) (3,144) (37,219)
Capital Gains:
Fiduciary Shares ............. -- -- -- -- -- --
Class A Shares ............... -- -- -- -- -- --
Class B Shares ............... -- -- -- -- -- --
Class C Shares ............... -- -- -- -- -- --
------------ ------------- ------------ ------------- ------------- -------------
Total Dividends and
Distributions ............ (313,441) (694,987) (88,008) (962,853) (480,889) (2,151,872)
------------ ------------- ------------ ------------- ------------- -------------
Net Increase (Decrease) in Net
Assets From:
Share Transactions (1) ........ 8,117,522 (11,961,278) (5,064,068) (22,096,558) (25,790,856) (40,402,669)
Redemption Fees (Note 2) ...... -- -- -- -- -- --
------------ ------------- ------------ ------------- ------------- -------------
Total Increase (Decrease) in
Net Assets ............... 9,362,592 (2,003,670) (4,384,882) (7,765,617) (30,375,345) (28,150,910)
------------ ------------- ------------ ------------- ------------- -------------
Net Assets:
Beginning of Period .............. 57,121,975 59,125,645 78,570,051 86,335,668 96,100,718 124,251,628
------------ ------------- ------------ ------------- ------------- -------------
End of Period .................... $ 66,484,567 $ 57,121,975 $ 74,185,169 $ 78,570,051 $ 65,725,373 $ 96,100,718
============ ============= ============ ============= ============= =============
Undistributed Net Investment
Income/(Accumulated Net Investment
Loss) .......................... $ (16,270) $ 10,804 $ 77,712 $ 87,672 $ (48,067) $ (2,497)
============ ============= ============ ============= ============= =============
Amounts designated as "--" are either not applicable or less than $1.00.
(1) For details on share transaction by class, see statements of changes in
net assets - capital stock activity on pages 150-159.
The accompanying notes are an integral part of the financial statements.
132 HIGHMARK(R) FUNDS
NYSE ARCA TECH 100 INDEX SMALL CAP CORE
FUND FUND
----------------------------- ---------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
----------------------------- ---------------------------
Investment Activities:
Net Investment Income (Loss) ................... $ (129,055) $ (423,563) $ 6,558 $ (85,902)
Net Realized Gain (Loss) on Investments,
Affiliated Funds, Foreign Currency
Transactions, Futures Contracts and Capital
Gains Distributions Received ................. 3,867,307 9,528,381 (7,091,654) 4,957,295
Change in Unrealized Appreciation (Depreciation)
on Investments, Affiliated Funds, Foreign
Currency Transactions and Futures Contracts .. 1,883,185 35,644,081 7,780,559 2,539,022
------------- ------------- ------------ ------------
Net Increase (Decrease) in Net Assets Resulting
From Operations .............................. 5,621,437 44,748,899 695,463 7,410,415
------------- ------------- ------------ ------------
Dividends and Distributions to Shareholders:
Net Investment Income:
Fiduciary Shares ........................... -- -- -- --
Class A Shares ............................. -- -- -- --
Class B Shares ............................. -- -- -- --
Class C Shares ............................. -- -- -- --
Capital Gains:
Fiduciary Shares ........................... -- -- -- --
Class A Shares ............................. -- -- -- --
Class B Shares ............................. -- -- -- --
Class C Shares ............................. -- -- -- --
------------- ------------- ------------ ------------
Total Dividends and Distributions ........ -- -- -- --
------------- ------------- ------------ ------------
Net Increase (Decrease) in Net Assets From:
Share Transactions (1) ...................... (14,180,764) (21,125,211) 35,596,257 (3,435,221)
Redemption Fees (Note 2) .................... -- -- 112 63
------------- ------------- ------------ ------------
Total Increase (Decrease) in Net Assets .. (8,559,327) 23,623,688 36,291,832 3,975,257
------------- ------------- ------------ ------------
Net Assets:
Beginning of Period ............................ 206,770,704 183,147,016 27,889,305 23,914,048
------------- ------------- ------------ ------------
End of Period .................................. $ 198,211,377 $ 206,770,704 $ 64,181,137 $ 27,889,305
============= ============= ============ ============
Undistributed Net Investment Income/(Accumulated
Net Investment Loss) ........................... $ (129,055) $ -- $ 6,558 $ --
============= ============= ============ ============
TACTICAL CAPITAL
VALUE MOMENTUM GROWTH ALLOCATION
FUND FUND
----------------------------- ---------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
----------------------------- ---------------------------
Investment Activities:
Net Investment Income (Loss) ................... $ 1,877,541 $ 3,728,139 $ 279,223 $ 213,303
Net Realized Gain (Loss) on Investments,
Affiliated Funds, Foreign Currency
Transactions, Futures Contracts and Capital
Gains Distributions Received ................. 7,744,659 25,675,541 195,715 406,698
Change in Unrealized Appreciation (Depreciation)
on Investments, Affiliated Funds, Foreign
Currency Transactions and Futures Contracts .. (10,890,973) 28,857,353 (1,125,381) 6,162,702
------------- ------------- ------------ ------------
Net Increase (Decrease) in Net Assets Resulting
From Operations .............................. (1,268,773) 58,261,033 (650,443) 6,782,703
------------- ------------- ------------ ------------
Dividends and Distributions to Shareholders:
Net Investment Income:
Fiduciary Shares ........................... (1,630,364) (4,901,329) (4,654) (1,522)
Class A Shares ............................. (403,431) (1,351,277) (183,767) (200,051)
Class B Shares ............................. (5,207) (40,417) -- --
Class C Shares ............................. (7,396) (34,583) (38,338) (5,745)
Capital Gains:
Fiduciary Shares ........................... (9,387,522) -- -- --
Class A Shares ............................. (2,784,426) -- -- --
Class B Shares ............................. (73,290) -- -- --
Class C Shares ............................. (94,859) -- -- --
------------- ------------- ------------ ------------
Total Dividends and Distributions ........ (14,386,495) (6,327,606) (226,759) (207,318)
------------- ------------- ------------ ------------
Net Increase (Decrease) in Net Assets From:
Share Transactions (1) ...................... 1,623,642 (47,550,109) 5,678,564 (2,204,054)
Redemption Fees (Note 2) .................... -- -- -- --
------------- ------------- ------------ ------------
Total Increase (Decrease) in Net Assets .. (14,031,626) 4,383,318 4,801,362 4,371,331
------------- ------------- ------------ ------------
Net Assets:
Beginning of Period ............................ 310,664,226 306,280,908 44,216,092 39,844,761
------------- ------------- ------------ ------------
End of Period .................................. $ 296,632,600 $ 310,664,226 $ 49,017,454 $ 44,216,092
============= ============= ============ ============
Undistributed Net Investment Income/(Accumulated
Net Investment Loss) ........................... $ (172,612) $ (3,755) $ 101,612 $ 49,148
============= ============= ============ ============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 133
STATEMENTS OF CHANGES IN NET ASSETS
TACTICAL GROWTH &
INCOME ALLOCATION BOND CALIFORNIA INTERMEDIATE
FUND FUND TAX-FREE BOND FUND
---------------------------- ------------------------------ ------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
---------------------------- ------------------------------ ------------------------------
Investment Activities:
Net Investment Income (Loss) ... $ 432,119 $ 427,577 $ 6,287,886 $ 13,534,592 $ 2,831,125 $ 5,808,105
Net Realized Gain (Loss) on
Investments, Affiliated
Funds, Foreign Currency
Transactions, Futures
Contracts and Capital Gains
Distributions Received ....... 2,954,225 2,684,792 1,864,012 8,249,013 (114,857) (115,747)
Change in Unrealized
Appreciation (Depreciation)
on Investments, Affiliated
Funds, Foreign Currency
Transactions and Futures
Contracts .................... (3,433,837) 3,027,599 4,970,326 (2,381,071) 8,655,957 (1,501,496)
------------- ------------ ------------- -------------- -------------- -------------
Net Increase (Decrease) in
Net Assets Resulting From
Operations ................... (47,493) 6,139,968 13,122,224 19,402,534 11,372,225 4,190,862
------------- ------------ ------------- -------------- -------------- -------------
Dividends and Distributions to
Shareholders:
Net Investment Income:
Fiduciary Shares ........... (8,650) (4,986) (5,829,517) (12,484,462) (1,702,357) (3,238,236)
Class A Shares ............. (236,815) (341,717) (542,527) (1,053,646) (967,681) (2,059,561)
Class B Shares ............. -- -- (3,734) (28,497) (353) (5,440)
Class C Shares ............. (95,386) (98,550) (133,764) (208,572) (260,237) (419,488)
Capital Gains:
Fiduciary Shares ........... -- -- (6,824,662) (2,773,259) -- --
Class A Shares ............. -- -- (682,404) (256,107) -- --
Class B Shares ............. -- -- (6,043) (10,059) -- --
Class C Shares ............. -- -- (215,416) (57,758) -- --
------------- ------------ ------------- -------------- -------------- -------------
Total Dividends and
Distributions .......... (340,851) (445,253) (14,238,067) (16,872,360) (2,930,628) (5,722,725)
------------- ------------ ------------- -------------- -------------- -------------
Net Increase (Decrease) in Net
Assets From:
Share Transactions (2) ...... 12,055,420 2,857,620 11,594,855 7,382,882 16,226,330 22,100,554
------------- ------------ ------------- -------------- -------------- -------------
Total Increase (Decrease)
in Net Assets .......... 11,667,076 8,552,335 10,479,012 9,913,056 24,667,927 20,568,691
------------- ------------ ------------- -------------- -------------- -------------
Net Assets:
Beginning of Period ............ 51,800,151 43,247,816 374,691,521 364,778,465 224,582,006 204,013,315
------------- ------------ ------------- -------------- -------------- -------------
End of Period .................. $ 63,467,227 $ 51,800,151 $ 385,170,533 $ 374,691,521 $ 249,249,933 $ 224,582,006
============= ============ ============= ============== ============== =============
Undistributed Net Investment
Income/(Accumulated Net
Investment Loss) ............. $ 146,176 $ 54,908 $ 8,060 $ 229,716 $ 13,637 $ 113,140
============= ============ ============= ============== ============== =============
Amounts designated as "--" are either not applicable or less than $1.00.
(1) The Fund began issuing Fiduciary Shares on August 3, 2010.
(2) For details on shares transaction by class, see statements of changes in
net assets - capital stock activity on pages 150-159.
The accompanying notes are an integral part of the financial statements.
134 HIGHMARK(R) FUNDS
NATIONAL INTERMEDIATE SHORT TERM BOND WISCONSIN
TAX-FREE BOND FUND FUND TAX-EXEMPT FUND
----------------------------- ----------------------------- ------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011(1)
----------------------------- ----------------------------- ------------------------------
Investment Activities:
Net Investment Income (Loss) ... $ 1,414,696 $ 2,972,472 $ 1,297,509 $ 2,615,279 $ 2,415,681 $ 5,318,948
Net Realized Gain (Loss) on
Investments, Affiliated Funds,
Foreign Currency Transactions,
Futures Contracts and Capital
Gains Distributions
Received ..................... 13,814 75 202,336 399,316 64,201 (438,670)
Change in Unrealized
Appreciation (Depreciation)
on Investments, Affiliated
Funds, Foreign Currency
Transactions and Futures
Contracts .................... 3,177,097 (744,306) (319,392) (250,248) 6,632,699 (1,833,800)
------------- ------------- ------------- ------------- ------------- --------------
Net Increase (Decrease) in Net
Assets Resulting From
Operations ................... 4,605,607 2,228,241 1,180,453 2,764,347 9,112,581 3,046,478
------------- ------------- ------------- ------------- ------------- --------------
Dividends and Distributions to
Shareholders:
Net Investment Income:
Fiduciary Shares ........... (1,071,074) (2,302,774) (1,058,614) (2,029,877) (6,113) (5,272)
Class A Shares ............. (300,873) (600,737) (235,016) (547,080) (2,225,027) (4,947,628)
Class B Shares ............. -- -- -- -- (21,005) (71,503)
Class C Shares ............. (52,439) (81,894) (162,170) (359,850) (170,453) (338,374)
Capital Gains:
Fiduciary Shares ........... -- (11,297) -- -- -- (158)
Class A Shares ............. -- (3,232) -- -- -- (166,152)
Class B Shares ............. -- -- -- -- -- (3,169)
Class C Shares ............. -- (490) -- -- -- (12,982)
------------- ------------- ------------- ------------- ------------- --------------
Total Dividends and
Distributions .......... (1,425,074) (3,000,424) (1,455,800) (2,936,807) (2,422,598) (5,545,238)
------------- ------------- ------------- ------------- ------------- --------------
Net Increase (Decrease) in Net
Assets From:
Share Transactions (2) ...... (3,481,572) 2,691,721 6,489,807 21,609,236 5,335,057 (13,843,312)
------------- ------------- ------------- ------------- ------------- --------------
Total Increase (Decrease)
in Net Assets .......... (301,039) 1,919,538 6,214,460 21,436,776 12,025,040 (16,342,072)
------------- ------------- ------------- ------------- ------------- --------------
Net Assets:
Beginning of Period ............ 107,737,771 105,818,233 132,705,094 111,268,318 143,377,955 159,720,027
------------- ------------- ------------- ------------- ------------- --------------
End of Period .................. $ 107,436,732 $ 107,737,771 $ 138,919,554 $ 132,705,094 $ 155,402,995 $ 143,377,955
============= ============= ============= ============= ============= ==============
Undistributed Net Investment
Income/(Accumulated Net
Investment Loss) ............... $ 1,921 $ 12,299 $ (141,534) $ 16,757 $ 6,908 $ 13,825
============= ============= ============= ============= ============= ==============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 135
STATEMENTS OF CHANGES IN NET ASSETS -
CAPITAL STOCK ACTIVITY
BALANCED FUND COGNITIVE VALUE FUND
----------------------------------------------- ----------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
----------------------------------------------- ----------------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from Shares
Issued .............. 117,377 $ 1,586,500 174,457 $ 2,406,987 270,225 $ 2,842,082 275,045 $ 3,060,849
Reinvestment of
Dividends and
Distributions ....... 7,839 104,172 21,931 299,089 3,314 34,435 983 10,639
Cost of Shares
Redeemed ............ (272,491) (3,631,316) (282,838) (3,856,590) (162,442) (1,719,298) (72,900) (805,243)
--------- ------------ -------- ------------ ---------- ------------- ---------- -------------
Total Fiduciary
Share
Transactions .... (147,275) (1,940,644) (86,450) (1,150,514) 111,097 1,157,219 203,128 2,266,245
--------- ------------ -------- ------------ ---------- ------------- ---------- -------------
Class A Shares:
Proceeds from Shares
Issued .............. 34,315 464,931 79,620 1,101,253 11,661 122,279 58,672 623,737
Reinvestment of
Dividends and
Distributions ....... 1,966 26,085 5,716 77,812 260 2,718 834 9,046
Cost of Shares
Redeemed ............ (63,205) (842,264) (80,459) (1,098,427) (39,048) (411,571) (45,806) (492,114)
--------- ------------ -------- ------------ ---------- ------------- ---------- -------------
Total Class A
Share
Transactions .... (26,924) (351,248) 4,877 80,638 (27,127) (286,574) 13,700 140,669
--------- ------------ -------- ------------ ---------- ------------- ---------- -------------
Class B Shares:
Proceeds from Shares
Issued .............. -- 59 1,390 19,259 -- -- -- --
Reinvestment of
Dividends and
Distributions ....... 6 80 222 3,002 -- -- -- --
Cost of Shares
Redeemed ............ (5,849) (79,247) (28,578) (395,314) -- -- -- --
--------- ------------ -------- ------------ ---------- ------------- ---------- -------------
Total Class B
Share
Transactions .... (5,843) (79,108) (26,966) (373,053) -- -- -- --
--------- ------------ -------- ------------ ---------- ------------- ---------- -------------
Class C Shares:
Proceeds from Shares
Issued .............. 8,861 117,708 23,965 319,781 2,353 22,445 32,385 350,167
Reinvestment of
Dividends and
Distributions ....... 62 822 454 6,154 -- -- 116 1,231
Cost of Shares
Redeemed ............ (9,483) (125,139) (3,536) (48,276) (15,942) (157,110) (38,890) (414,758)
--------- ------------ -------- ------------ ---------- ------------- ---------- -------------
Total Class C
Share
Transactions .... (560) (6,609) 20,883 277,659 (13,589) (134,665) (6,389) (63,360)
--------- ------------ -------- ------------ ---------- ------------- ---------- -------------
Class M Shares:
Proceeds from Shares
Issued .............. -- -- -- -- 292,154 2,974,540 1,057,545 10,575,434
Reinvestment of
Dividends ........... -- -- -- -- 61,733 641,409 84,977 919,625
Cost of Shares
Redeemed ............ -- -- -- -- (1,152,687) (11,977,617) (1,018,124) (11,125,117)
--------- ------------ -------- ------------ ---------- ------------- ---------- -------------
Total Class M
Share
Transactions .... -- -- -- -- (798,800) (8,361,668) 124,398 369,942
--------- ------------ -------- ------------ ---------- ------------- ---------- -------------
Net Increase
(Decrease) from
Capital Stock
Activity ............ (180,602) $ (2,377,609) (87,656) $ (1,165,270) (728,419) $ (7,625,688) 334,837 $ 2,713,496
========= ============ ======== ============ ========== ============= ========== =============
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
136 HIGHMARK(R) FUNDS
ENHANCED GROWTH FUND EQUITY INCOME FUND
--------------------------------------------------- ----------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------- ----------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from Shares
Issued ................ 76,288 $ 775,805 169,363 $ 1,844,966 350,023 $ 3,194,698 620,012 $ 5,645,421
Reinvestment of Dividends
and Distributions ..... -- -- -- -- 9,943 87,707 9,680 89,163
Cost of Shares
Redeemed .............. (78,495) (838,960) (174,741) (1,840,560) (116,206) (1,045,579) (30,039) (273,584)
----------- ------------- --------- ------------ -------- ------------ -------- ------------
Total Fiduciary Share
Transactions ...... (2,207) (63,155) (5,378) 4,406 243,760 2,236,826 599,653 5,461,000
----------- ------------- --------- ------------ -------- ------------ -------- ------------
Class A Shares:
Proceeds from Shares
Issued ................ 44,127 459,589 130,470 1,430,829 197,895 1,735,748 113,305 1,038,229
Reinvestment of Dividends
and Distributions ..... -- -- -- -- 11,573 101,656 30,663 269,203
Cost of Shares
Redeemed .............. (55,721) (573,643) (202,217) (2,058,081) (124,548) (1,118,583) (400,198) (3,486,854)
----------- ------------- --------- ------------ -------- ------------ -------- ------------
Total Class A Share
Transactions ...... (11,594) (114,054) (71,747) (627,252) 84,920 718,821 (256,230) (2,179,422)
----------- ------------- --------- ------------ -------- ------------ -------- ------------
Class B Shares:
Proceeds from Shares
Issued ................ -- -- -- -- 5,237 45,288 447 3,842
Reinvestment of Dividends
and Distributions ..... -- -- -- -- 1,478 13,035 4,537 39,939
Cost of Shares
Redeemed .............. -- -- -- -- (26,679) (238,674) (63,428) (568,898)
----------- ------------- --------- ------------ -------- ------------ -------- ------------
Total Class B Share
Transactions ...... -- -- -- -- (19,964) (180,351) (58,444) (525,117)
----------- ------------- --------- ------------ -------- ------------ -------- ------------
Class C Shares:
Proceeds from Shares
Issued ................ 16 144 13,856 151,321 30,682 274,202 32,010 294,463
Reinvestment of Dividends
and Distributions ..... -- -- -- -- 2,322 20,298 5,698 49,855
Cost of Shares
Redeemed .............. (7,780) (74,576) (8,677) (94,826) (19,061) (174,097) (51,059) (446,272)
----------- ------------- --------- ------------ -------- ------------ -------- ------------
Total Class C Share
Transactions ...... (7,764) (74,432) 5,179 56,495 13,943 120,403 (13,351) (101,954)
----------- ------------- --------- ------------ -------- ------------ -------- ------------
Class M Shares:
Proceeds from Shares
Issued ................ 286,521 2,969,724 1,468,918 14,555,580 -- -- -- --
Reinvestment of
Dividends ............. -- -- -- -- -- -- -- --
Cost of Shares
Redeemed .............. (1,241,938) (13,127,363) (777,133) (8,449,262) -- -- -- --
----------- ------------- --------- ------------ -------- ------------ -------- ------------
Total Class M Share
Transactions ...... (955,417) (10,157,639) 691,785 6,106,318 -- -- -- --
----------- ------------- --------- ------------ -------- ------------ -------- ------------
Net Increase (Decrease)
from Capital Stock
Activity .............. (976,982) $ (10,409,280) 619,839 $ 5,539,967 322,659 $ 2,895,699 271,628 $ 2,654,507
=========== ============= ========= ============ ======== ============ ======== ============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 137
STATEMENTS OF CHANGES IN NET ASSETS -
CAPITAL STOCK ACTIVITY
GENEVA MID CAP GROWTH FUND
----------------------------------------------------------
SIX MONTHS
ENDED
1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS
----------------------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from Shares Issued .......... 4,572,204 $ 101,369,969 9,147,106 $ 210,427,421
Subscriptions from Reorganizations
Fiduciary Class (Note 8) ........... -- -- -- --
Reinvestment of Dividends and
Distributions ...................... 178,713 4,094,335 2,022 44,653
Cost of Shares Redeemed .............. (1,181,489) (25,691,336) (798,702) (18,347,466)
----------- ------------- ----------- --------------
Total Fiduciary Share
Transactions ................... 3,569,428 79,772,968 8,350,426 192,124,608
----------- ------------- ----------- --------------
Class A Shares:
Proceeds from Shares Issued .......... 3,149,989 69,965,462 3,740,041 82,372,045
Subscriptions from Reorganizations
Class A (Note 8) ................... -- -- -- --
Reinvestment of Dividends and
Distributions ...................... 166,619 3,788,913 11,340 249,371
Cost of Shares Redeemed .............. (1,619,857) (35,822,942) (4,997,597) (110,875,703)
----------- ------------- ----------- --------------
Total Class A Share
Transactions ................... 1,696,751 37,931,433 (1,246,216) (28,254,287)
----------- ------------- ----------- --------------
Class B Shares:
Proceeds from Shares Issued .......... 1,205 24,684 6,269 130,443
Reinvestment of Dividends and
Distributions ...................... 4,122 85,131 358 7,211
Cost of Shares Redeemed .............. (50,777) (994,549) (114,894) (2,240,830)
----------- ------------- ----------- --------------
Total Class B Share
Transactions ................... (45,450) (884,734) (108,267) (2,103,176)
----------- ------------- ----------- --------------
Class C Shares:
Proceeds from Shares Issued .......... 630,912 12,978,855 560,886 11,614,224
Subscriptions from Reorganizations
Class C (Note 8) ................... -- -- -- --
Reinvestment of Dividends and
Distributions ...................... 34,877 728,923 1,588 32,328
Cost of Shares Redeemed .............. (110,493) (2,235,351) (143,411) (2,845,899)
----------- ------------- ----------- --------------
Total Class C Share
Transactions ................... 555,296 11,472,427 419,063 8,800,653
----------- ------------- ----------- --------------
Class M Shares:
Proceeds from Shares Issued .......... -- -- -- --
Reinvestment of Dividends ............ -- -- -- --
Cost of Shares Redeemed .............. -- -- -- --
----------- ------------- ----------- --------------
Total Class M Share
Transactions ................... -- -- -- --
----------- ------------- ----------- --------------
Net Increase (Decrease) from
Capital Stock Activity ............. 5,776,025 $ 128,292,094 7,415,006 $ 170,567,798
=========== ============= =========== ==============
GENEVA SMALL CAP GROWTH FUND
---------------------------------------------------
SIX MONTHS
ENDED
1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from Shares Issued ............ 257,012 $ 7,589,322 209,987 $ 6,295,748
Subscriptions from Reorganizations
Fiduciary Class (Note 8) ............. -- -- -- --
Reinvestment of Dividends and
Distributions ........................ 14,118 426,935 7,629 229,808
Cost of Shares Redeemed ................ (56,920) (1,628,455) (71,317) (2,238,124)
--------- ------------ -------- -------------
Total Fiduciary Share
Transactions ..................... 214,210 6,387,802 146,299 4,287,432
--------- ------------ -------- -------------
Class A Shares:
Proceeds from Shares Issued ............ 37,262 1,073,912 173,388 5,373,313
Subscriptions from Reorganizations
Class A (Note 8) ..................... -- -- -- --
Reinvestment of Dividends and
Distributions ........................ 8,796 264,220 5,285 158,544
Cost of Shares Redeemed ................ (47,561) (1,401,402) (19,142) (593,879)
--------- ------------ -------- -------------
Total Class A Share
Transactions ..................... (1,503) (63,270) 159,531 4,937,978
--------- ------------ -------- -------------
Class B Shares:
Proceeds from Shares Issued ............ -- -- -- --
Reinvestment of Dividends and
Distributions ........................ -- -- -- --
Cost of Shares Redeemed ................ -- -- -- --
--------- ------------ -------- -------------
Total Class B Share
Transactions ..................... -- -- -- --
--------- ------------ -------- -------------
Class C Shares:
Proceeds from Shares Issued ............ 29,320 843,469 63,155 1,953,328
Subscriptions from Reorganizations
Class C (Note 8) ..................... -- -- -- --
Reinvestment of Dividends and
Distributions ........................ 2,625 77,680 465 13,819
Cost of Shares Redeemed ................ (10,937) (310,108) (4,367) (135,113)
--------- ------------ -------- -------------
Total Class C Share
Transactions ..................... 21,008 611,041 59,253 1,832,034
--------- ------------ -------- -------------
Class M Shares:
Proceeds from Shares Issued ............ -- -- -- --
Reinvestment of Dividends .............. -- -- -- --
Cost of Shares Redeemed ................ -- -- -- --
--------- ------------ -------- -------------
Total Class M Share
Transactions ..................... -- -- -- --
--------- ------------ -------- -------------
Net Increase (Decrease) from
Capital Stock Activity ............... 233,715 $ 6,935,573 365,083 $ 11,057,444
========= ============ ======== =============
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
138 HIGHMARK(R) FUNDS
INTERNATIONAL OPPORTUNITIES FUND
---------------------------------------------------------
SIX MONTHS
ENDED
1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from Shares Issued ........... 1,352,992 $ 8,474,943 2,921,932 $ 21,283,106
Subscriptions from Reorganizations
Fiduciary Class (Note 8) ............ -- -- -- --
Reinvestment of Dividends and
Distributions ....................... 184,054 1,041,747 107,779 758,762
Cost of Shares Redeemed ............... (2,267,809) (13,937,004) (3,062,608) (22,011,828)
----------- ------------- ----------- -------------
Total Fiduciary Share
Transactions .................... (730,763) (4,420,314) (32,897) 30,040
----------- ------------- ----------- -------------
Class A Shares:
Proceeds from Shares Issued ........... 65,822 400,394 217,725 1,543,650
Subscriptions from Reorganizations
Class A (Note 8) .................... -- -- -- --
Reinvestment of Dividends and
Distributions ....................... 15,497 88,021 14,522 102,237
Cost of Shares Redeemed ............... (142,318) (878,888) (611,967) (4,396,489)
----------- ------------- ----------- -------------
Total Class A Share
Transactions .................... (60,999) (390,473) (379,720) (2,750,602)
----------- ------------- ----------- -------------
Class B Shares:
Proceeds from Shares Issued ........... -- -- -- --
Reinvestment of Dividends and
Distributions ....................... -- -- -- --
Cost of Shares Redeemed ............... -- -- -- --
----------- ------------- ----------- -------------
Total Class B Share
Transactions .................... -- -- -- --
----------- ------------- ----------- -------------
Class C Shares:
Proceeds from Shares Issued ........... 2,521 15,463 48,871 339,457
Subscriptions from Reorganizations
Class C (Note 8) .................... -- -- -- --
Reinvestment of Dividends and
Distributions ....................... 3,834 21,698 3,296 23,042
Cost of Shares Redeemed ............... (95,538) (568,466) (57,186) (409,953)
----------- ------------- ----------- -------------
Total Class C Share
Transactions .................... (89,183) (531,305) (5,019) (47,454)
----------- ------------- ----------- -------------
Class M Shares:
Proceeds from Shares Issued ........... 505,586 3,085,354 1,331,063 9,688,116
Reinvestment of Dividends ............. 545,684 3,088,570 325,121 2,288,850
Cost of Shares Redeemed ............... (1,322,276) (8,246,765) (2,492,008) (17,790,499)
----------- ------------- ----------- -------------
Total Class M Share
Transactions .................... (271,006) (2,072,841) (835,824) (5,813,533)
----------- ------------- ----------- -------------
Net Increase (Decrease) from Capital
Stock Activity ...................... (1,151,951) $ (7,414,933) (1,253,460) $ (8,581,549)
=========== ============= =========== =============
LARGE CAP CORE EQUITY FUND
---------------------------------------------------------
SIX MONTHS
ENDED
1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS
---------------------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from Shares Issued ........... 267,857 $ 2,136,286 764,345 $ 6,325,393
Subscriptions from Reorganizations
Fiduciary Class (Note 8) ............ 1,836,177 15,503,279 -- --
Reinvestment of Dividends and
Distributions ....................... 14,506 112,925 33,012 267,792
Cost of Shares Redeemed ............... (1,237,774) (10,032,512) (2,186,481) (18,173,729)
----------- ------------- ----------- -------------
Total Fiduciary Share
Transactions .................... 880,766 7,719,978 (1,389,124) (11,580,544)
----------- ------------- ----------- -------------
Class A Shares:
Proceeds from Shares Issued ........... 24,404 200,403 72,209 611,978
Subscriptions from Reorganizations
Class A (Note 8) .................... 4,544 38,269 -- --
Reinvestment of Dividends and
Distributions ....................... 1,433 11,081 2,842 23,172
Cost of Shares Redeemed ............... (26,071) (211,255) (83,095) (683,839)
----------- ------------- ----------- -------------
Total Class A Share
Transactions .................... 4,310 38,498 (8,044) (48,689)
----------- ------------- ----------- -------------
Class B Shares:
Proceeds from Shares Issued ........... -- -- 5,376 44,031
Reinvestment of Dividends and
Distributions ....................... 6 45 78 621
Cost of Shares Redeemed ............... (9,572) (76,725) (59,059) (490,364)
----------- ------------- ----------- -------------
Total Class B Share
Transactions .................... (9,566) (76,680) (53,605) (445,712)
----------- ------------- ----------- -------------
Class C Shares:
Proceeds from Shares Issued ........... 65,683 533,249 21,758 167,546
Subscriptions from Reorganizations
Class C (Note 8) .................... 3,269 26,758 -- --
Reinvestment of Dividends and
Distributions ....................... 101 757 114 918
Cost of Shares Redeemed ............... (16,677) (125,038) (7,026) (54,797)
----------- ------------- ----------- -------------
Total Class C Share
Transactions .................... 52,376 435,726 14,846 113,667
----------- ------------- ----------- -------------
Class M Shares:
Proceeds from Shares Issued ........... -- -- -- --
Reinvestment of Dividends ............. -- -- -- --
Cost of Shares Redeemed ............... -- -- -- --
----------- ------------- ----------- -------------
Total Class M Share
Transactions .................... -- -- -- --
----------- ------------- ----------- -------------
Net Increase (Decrease) from Capital
Stock Activity ...................... 927,886 $ 8,117,522 (1,435,927) $ (11,961,278)
=========== ============= =========== =============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 139
STATEMENTS OF CHANGES IN NET ASSETS -
CAPITAL STOCK ACTIVITY
LARGE CAP GROWTH FUND LARGE CAP VALUE FUND
----------------------------------------------- ---------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
----------------------------------------------- ---------------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from Shares
Issued ................. 505,240 $ 4,876,635 977,734 $ 9,511,489 465,380 $ 4,731,951 1,273,932 $ 14,431,261
Subscriptions from
Reorganizations
Fiduciary Class (Note
8) .................... -- -- -- -- -- -- -- --
Reinvestment of Dividends
and Distributions ..... 4,957 47,937 44,280 446,785 26,781 266,329 117,118 1,297,976
Cost of Shares Redeemed .. (863,153) (8,396,061) (2,293,189) (23,232,239) (2,832,018) (29,314,401) (4,463,391) (49,412,316)
-------- ----------- ---------- ------------ ---------- ------------ ---------- ------------
Total Fiduciary Share
Transactions ....... (352,956) (3,471,489) (1,271,175) (13,273,965) (2,339,857) (24,316,121) (3,072,341) (33,683,079)
-------- ----------- ---------- ------------ ---------- ------------ ---------- ------------
Class A Shares:
Proceeds from Shares
Issued ................ 98,010 941,390 209,610 2,085,029 44,046 450,172 79,396 914,077
Subscriptions from
Reorganizations Class
A (Note 8) ............ -- -- -- -- -- -- -- --
Reinvestment of Dividends
and Distributions ..... -- -- 14,810 146,913 9,064 90,986 32,997 366,743
Cost of Shares Redeemed .. (175,378) (1,671,671) (882,030) (8,436,350) (157,235) (1,608,937) (524,678) (5,958,855)
-------- ----------- ---------- ------------ ---------- ------------ ---------- ------------
Total Class A Share
Transactions ....... (77,368) (730,281) (657,610) (6,204,408) (104,125) (1,067,779) (412,285) (4,678,035)
-------- ----------- ---------- ------------ ---------- ------------ ---------- ------------
Class B Shares:
Proceeds from Shares
Issued ................ 1,326 12,429 407 3,907 2,332 23,623 276 3,253
Reinvestment of Dividends
and Distributions ..... -- -- -- -- 68 674 1,215 13,098
Cost of Shares Redeemed .. (90,505) (809,801) (189,171) (1,749,901) (27,615) (277,427) (59,998) (671,018)
-------- ----------- ---------- ------------ ---------- ------------ ---------- ------------
Total Class B Share
Transactions ....... (89,179) (797,372) (188,764) (1,745,994) (25,215) (253,130) (58,507) (654,667)
-------- ----------- ---------- ------------ ---------- ------------ ---------- ------------
Class C Shares:
Proceeds from Shares
Issued ................ 4,744 41,774 24,388 233,921 2,186 22,713 6,431 69,836
Subscriptions from
Reorganizations Class
C (Note 8) ............ -- -- -- -- -- -- -- --
Reinvestment of Dividends
and Distributions ..... -- -- 1,093 10,102 297 2,948 3,235 34,737
Cost of Shares Redeemed .. (12,167) (106,700) (125,833) (1,116,214) (18,000) (179,487) (136,344) (1,491,461)
-------- ----------- ---------- ------------ ---------- ------------ ---------- ------------
Total Class C Share
Transactions ....... (7,423) (64,926) (100,352) (872,191) (15,517) (153,826) (126,678) (1,386,888)
-------- ----------- ---------- ------------ ---------- ------------ ---------- ------------
Net Increase (Decrease)
from Capital Stock
Activity .............. (526,926) $(5,064,068) (2,217,901) $(22,096,558) (2,484,714) $(25,790,856) (3,669,811) $(40,402,669)
======== =========== ========== ============ ========== ============ ========== ============
Amounts designated as "--" are either $0 or have been rounded to $ 0.
The accompanying notes are an integral part of the financial statements.
140 HIGHMARK(R) FUNDS
NYSE ARCA TECH 100 INDEX FUND SMALL CAP CORE FUND
----------------------------------------------- --------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
----------------------------------------------- --------------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from Shares
Issued ............... 143,085 $ 4,343,979 221,631 $ 6,946,480 280,309 $ 4,748,978 264,971 $ 4,880,502
Subscriptions from
Reorganizations
Fiduciary Class
(Note 8) ............. -- -- -- -- 1,458,617 26,344,563 -- --
Reinvestment of Dividends
and Distributions .... -- -- -- -- -- -- -- --
Cost of Shares
Redeemed ............. (30,994) (961,553) (48,071) (1,569,230) (575,330) (10,108,376) (473,170) (8,581,732)
-------- ------------ ---------- ------------ ---------- ------------ --------- ------------
Total Fiduciary Share
Transactions ...... 112,091 3,382,426 173,560 5,377,250 1,163,596 20,985,165 (208,199) (3,701,230)
-------- ------------ ---------- ------------ ---------- ------------ --------- ------------
Class A Shares:
Proceeds from Shares
Issued ............... 461,760 14,072,595 1,164,336 35,997,236 12,045 205,371 20,758 394,043
Subscriptions from
Reorganizations Class A
(Note 8) ............. -- -- -- -- 663,271 11,877,890 -- --
Reinvestment of Dividends
and Distributions .... -- -- -- -- -- -- -- --
Cost of Shares
Redeemed ............. (968,690) (29,324,317) (1,809,690) (55,819,075) (70,508) (1,228,581) (14,085) (239,173)
-------- ------------ ---------- ------------ ---------- ------------ --------- ------------
Total Class A Share
Transactions ...... (506,930) (15,251,722) (645,354) (19,821,839) 604,808 10,854,680 6,673 154,870
-------- ------------ ---------- ------------ ---------- ------------ --------- ------------
Class B Shares:
Proceeds from Shares
Issued ............... -- -- 3,029 88,954 -- -- -- --
Reinvestment of Dividends
and Distributions .... -- -- -- -- -- -- -- --
Cost of Shares
Redeemed ............. (69,162) (1,878,808) (182,041) (5,008,569) -- -- -- --
-------- ------------ ---------- ------------ ---------- ------------ --------- ------------
Total Class B Share
Transactions ...... (69,162) (1,878,808) (179,012) (4,919,615) -- -- -- --
-------- ------------ ---------- ------------ ---------- ------------ --------- ------------
Class C Shares:
Proceeds from Shares
Issued ............... 10,258 292,642 36,553 1,045,906 225 3,768 7,353 133,337
Subscriptions from
Reorganizations Class C
(Note 8) ............. -- -- -- -- 232,398 4,059,148 -- --
Reinvestment of Dividends
and Distributions .... -- -- -- -- -- -- -- --
Cost of Shares
Redeemed ............. (25,774) (725,302) (104,785) (2,806,913) (18,329) (306,504) (1,168) (22,198)
-------- ------------ ---------- ------------ ---------- ------------ --------- ------------
Total Class C Share
Transactions ...... (15,516) (432,660) (68,232) (1,761,007) 214,294 3,756,412 6,185 111,139
-------- ------------ ---------- ------------ ---------- ------------ --------- ------------
Net Increase (Decrease)
from Capital Stock
Activity ............. (479,517) $(14,180,764) (719,038) $(21,125,211) 1,982,698 $ 35,596,257 (195,341) $ (3,435,221)
======== ============ ========== ============ ========== ============ ========= ============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 141
STATEMENTS OF CHANGES IN NET ASSETS -
CAPITAL STOCK ACTIVITY
VALUE MOMENTUM FUND TACTICAL CAPITAL GROWTH ALLOCATION FUND
--------------------------------------------------- ---------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------- ---------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from
Shares Issued ........... 1,010,141 $ 14,777,632 2,267,702 $ 34,910,783 6,558 $ 135,551 6,593 $ 142,825
Subscriptions from
Reorganizations Fiduciary
Class (Note 8) .......... -- -- -- -- 21,079 435,876 -- --
Reinvestment of
Dividends and
Distributions ........... 723,902 10,469,196 258,336 3,903,824 223 4,379 76 1,522
Cost of Shares Redeemed ... (7,974,693) (118,067,816) (4,663,578) (71,093,569) (2,156) (41,899) (7,134) (140,759)
---------- ------------- ---------- ------------ -------- ----------- -------- -----------
Total Fiduciary
Share Transactions .... (6,240,650) (92,820,988) (2,137,540) (32,278,962) 25,704 533,907 (465) 3,588
---------- ------------- ---------- ------------ -------- ----------- -------- -----------
Class A Shares:
Proceeds from
Shares Issued ........... 54,510 794,318 143,154 2,205,404 48,201 945,197 251,627 5,263,068
Subscriptions from
Reorganizations
Class A (Note 8) ........ -- -- -- -- 152,650 3,154,388 -- --
Reinvestment of
Dividends and
Distributions ........... 204,533 2,949,656 82,262 1,236,042 8,687 169,627 9,003 183,924
Cost of Shares Redeemed ... (306,607) (4,463,158) (1,092,462) (16,480,347) (147,712) (2,901,409) (331,912) (6,838,965)
---------- ------------- ---------- ------------ -------- ----------- -------- -----------
Total Class A
Share Transactions .... (47,564) (719,184) (867,046) (13,038,901) 61,826 1,367,803 (71,282) (1,391,973)
---------- ------------- ---------- ------------ -------- ----------- -------- -----------
Class B Shares:
Proceeds from
Shares Issued ........... 3 226 527 8,020 -- -- -- --
Reinvestment of
Dividends and
Distributions ........... 4,895 69,076 2,627 38,127 -- -- -- --
Cost of Shares Redeemed ... (49,266) (700,480) (120,433) (1,814,414) -- -- -- --
---------- ------------- ---------- ------------ -------- ----------- -------- -----------
Total Class B
Share Transactions .... (44,368) (631,178) (117,279) (1,768,267) -- -- -- --
---------- ------------- ---------- ------------ -------- ----------- -------- -----------
Class C Shares:
Proceeds from
Shares Issued ........... 3,190 45,600 11,760 179,954 44,603 878,070 132,589 2,737,277
Subscriptions from
Reorganizations
Class C (Note 8) ........ -- -- -- -- 270,025 5,520,422 -- --
Reinvestment of
Dividends and
Distributions ........... 7,007 98,450 2,297 33,441 1,795 34,944 246 5,097
Cost of Shares Redeemed ... (20,016) (282,512) (45,991) (677,374) (135,255) (2,656,582) (174,017) (3,558,043)
---------- ------------- ---------- ------------ -------- ----------- -------- -----------
Total Class C
Share Transactions .... (9,819) (138,462) (31,934) (463,979) 181,168 3,776,854 (41,182) (815,669)
---------- ------------- ---------- ------------ -------- ----------- -------- -----------
Class U Shares:
Proceeds From
Shares Issued ........... 6,550,606 97,287,051 -- -- -- -- -- --
Cost of Shares Redeemed ... (89,527) (1,353,597) -- -- -- -- -- --
---------- ------------- ---------- ------------ -------- ----------- -------- -----------
Total Class U
Share Transactions .... 6,461,079 95,933,454 -- -- -- -- -- --
---------- ------------- ---------- ------------ -------- ----------- -------- -----------
Net Increase (Decrease)
from Capital Stock
Activity ................ 118,678 $ 1,623,642 (3,153,799) $(47,550,109) 268,698 $ 5,678,564 (112,929) $(2,204,054)
========== ============= ========== ============ ======== =========== ======== ===========
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
142 HIGHMARK(R) FUNDS
TACTICAL GROWTH & INCOME ALLOCATION FUND BOND FUND
----------------------------------------------- -------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
----------------------------------------------- -------------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from
Shares Issued ........... 18,849 $ 388,155 44,224 $ 970,704 2,487,945 $28,393,911 5,158,803 $ 58,522,672
Subscriptions from
Reorganizations Fiduciary
Class (Note 8) .......... 17,234 365,388 -- -- -- -- -- --
Reinvestment of
Dividends and
Distributions ........... 426 8,623 232 4,986 852,680 9,622,924 875,197 9,885,466
Cost of Shares Redeemed ... (34,811) (692,273) (3,642) (73,705)(3,483,506) (39,842,160) (5,631,964) (63,951,496)
---------- ----------- --------- ----------- --------- ----------- ---------- ------------
Total Fiduciary
Share Transactions .... 1,698 69,893 40,814 901,985 (142,881) (1,825,325) 402,036 4,456,642
---------- ----------- --------- ----------- --------- ----------- ---------- ------------
Class A Shares:
Proceeds from
Shares Issued ........... 127,635 2,525,327 360,708 7,725,982 1,067,368 11,913,867 802,116 8,984,591
Subscriptions from
Reorganizations
Class A (Note 8) ........ 362,848 7,665,765 -- -- -- -- -- --
Reinvestment of
Dividends and
Distributions ........... 10,129 204,729 14,438 302,979 86,613 961,586 85,104 946,795
Cost of Shares Redeemed ... (202,397) (4,094,412) (333,709) (7,039,957) (245,726) (2,760,338) (858,564) (9,566,185)
---------- ----------- --------- ----------- --------- ----------- ---------- ------------
Total Class A
Share Transactions .... 298,215 6,301,409 41,437 989,004 908,255 10,115,115 28,656 365,201
---------- ----------- --------- ----------- --------- ----------- ---------- ------------
Class B Shares:
Proceeds from
Shares Issued ........... -- -- -- -- 5,991 67,451 7,967 89,327
Reinvestment of
Dividends and
Distributions ........... -- -- -- -- 743 8,221 2,936 32,495
Cost of Shares Redeemed ... -- -- -- -- (17,708) (196,665) (102,344) (1,138,194)
---------- ----------- --------- ----------- --------- ----------- ---------- ------------
Total Class B
Share Transactions .... -- -- -- -- (10,974) (120,993) (91,441) (1,016,372)
---------- ----------- --------- ----------- --------- ----------- ---------- ------------
Class C Shares:
Proceeds from
Shares Issued ........... 57,452 1,142,278 214,856 4,531,850 368,141 4,113,264 469,376 5,233,750
Subscriptions from
Reorganizations
Class C (Note 8) ........ 387,105 8,131,971 -- -- -- -- -- --
Reinvestment of
Dividends and
Distributions ........... 4,353 87,800 4,390 91,216 20,880 230,428 17,519 193,808
Cost of Shares Redeemed ... (181,348) (3,677,931) (174,572) (3,656,435) (82,354) (917,634) (167,258) (1,850,147)
---------- ----------- --------- ----------- --------- ----------- ---------- ------------
Total Class C
Share Transactions .... 267,562 5,684,118 44,674 966,631 306,667 3,426,058 319,637 3,577,411
---------- ----------- --------- ----------- --------- ----------- ---------- ------------
Class U Shares:
Proceeds From
Shares Issued ........... -- -- -- -- -- -- -- --
Cost of Shares Redeemed ... -- -- -- -- -- -- -- --
---------- ----------- --------- ----------- --------- ----------- ---------- ------------
Total Class U
Share Transactions .... -- -- -- -- -- -- -- --
---------- ----------- --------- ----------- --------- ----------- ---------- ------------
Net Increase (Decrease)
from Capital Stock
Activity ................ 567,475 $12,055,420 126,925 $ 2,857,620 1,061,067 $11,594,855 658,888 $ 7,382,882
========== =========== ========= =========== ========= =========== ========== ============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 143
STATEMENTS OF CHANGES IN NET ASSETS -
CAPITAL STOCK ACTIVITY
CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND NATIONAL INTERMEDIATE TAX-FREE BOND FUND
-------------------------------------------------- ------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
-------------------------------------------------- ------------------------------------------------
Share Transactions:
Fiduciary Shares: (1)
Proceeds from
Shares Issued .......... 1,759,079 $ 18,223,624 4,254,632 $ 43,276,898 444,015 $ 5,129,722 1,541,839 $ 17,607,549
Reinvestment of
Dividends and
Distributions .......... 58,074 600,991 102,781 1,038,597 18,207 210,784 41,971 476,263
Cost of Shares Redeemed .. (1,189,970) (12,341,468) (3,207,975) (32,429,167) (867,692) (10,034,462) (1,656,828) (18,753,751)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Total Fiduciary
Share Transactions ... 627,183 6,483,147 1,149,438 11,886,328 (405,470) (4,693,956) (73,018) (669,939)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Class A Shares:
Proceeds from
Shares Issued .......... 1,818,403 18,745,501 4,953,242 49,999,762 289,724 3,363,509 1,183,836 13,475,764
Reinvestment of
Dividends and
Distributions .......... 58,377 601,273 134,368 1,352,065 15,327 177,392 28,243 320,793
Cost of Shares Redeemed .. (1,610,030) (16,533,347) (4,864,450) (48,690,431) (406,024) (4,716,666) (1,085,272) (12,249,809)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Total Class A
Share Transactions ... 266,750 2,813,427 223,160 2,661,396 (100,973) (1,175,765) 126,807 1,546,748
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Class B Shares:
Proceeds from
Shares Issued .......... -- -- 12 122 -- -- -- --
Reinvestment of
Dividends and
Distributions .......... 34 353 449 4,523 -- -- -- --
Cost of Shares Redeemed .. (9,305) (96,323) (53,577) (542,096) -- -- -- --
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Total Class B
Share Transactions ... (9,271) (95,970) (53,116) (537,451) -- -- -- --
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Class C Shares:
Proceeds from
Shares Issued .......... 878,858 9,041,185 1,286,266 13,020,136 261,113 3,032,103 232,773 2,662,240
Reinvestment of
Dividends and
Distributions .......... 18,015 184,935 29,598 296,522 2,787 32,314 4,172 47,354
Cost of Shares Redeemed .. (214,183) (2,200,394) (522,817) (5,226,377) (58,271) (676,268) (78,750) (894,682)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Total Class C
Share Transactions ... 682,690 7,025,726 793,047 8,090,281 205,629 2,388,149 158,195 1,814,912
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net Increase (Decrease)
from Capital Stock
Activity ............... 1,567,352 $ 16,226,330 2,112,529 $ 22,100,554 (300,814) $(3,481,572) 211,984 $ 2,691,721
========== ============ ========== ============ ======== =========== ========== ============
Amounts designated as "--" are either $0 or have been rounded to $0.
(1) Wisconsin Tax-Exempt Fund began issuing Fiduciary Shares on August 3,
2010.
The accompanying notes are an integral part of the financial statements.
144 HIGHMARK(R) FUNDS
SHORT TERM BOND FUND WISCONSIN TAX-EXEMPT FUND
-------------------------------------------------- -----------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011(1)
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
-------------------------------------------------- -----------------------------------------------
Share Transactions:
Fiduciary Shares: (1)
Proceeds from
Shares Issued .......... 2,792,849 $ 28,052,342 4,176,814 $ 42,189,118 16,535 $ 175,955 28,157 $ 295,583
Reinvestment of
Dividends and
Distributions ........ 55,253 553,730 124,196 1,252,459 398 4,217 212 2,190
Cost of Shares Redeemed .. (2,142,222) (21,511,586) (2,673,363) (26,971,606) (3,639) (38,342) (1,211) (12,075)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Total Fiduciary
Share Transactions ... 705,880 7,094,486 1,627,647 16,469,971 13,294 141,830 27,158 285,698
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Class A Shares:
Proceeds from
Shares Issued .......... 888,613 8,906,471 1,734,488 17,495,454 735,173 7,759,728 881,822 9,177,740
Reinvestment of
Dividends and
Distributions .......... 18,817 188,370 39,008 392,879 151,732 1,605,897 350,375 3,611,323
Cost of Shares Redeemed .. (999,049) (10,019,505) (1,595,156) (16,090,113) (527,601) (5,569,350) (2,625,569) (27,023,594)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Total Class A
Share Transactions ... (91,619) (924,664) 178,340 1,798,220 359,304 3,796,275 (1,393,372) (14,234,531)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Class B Shares:
Proceeds from
Shares Issued .......... -- -- -- -- -- -- 3,434 35,993
Reinvestment of
Dividends and
Distributions .......... -- -- -- -- 1,021 10,796 3,499 36,031
Cost of Shares Redeemed .. -- -- -- -- (78,879) (829,477) (80,178) (820,873)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Total Class B
Share Transactions ... -- -- -- -- (77,858) (818,681) (73,245) (748,849)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Class C Shares:
Proceeds from
Shares Issued .......... 466,128 4,727,021 1,091,164 11,140,438 281,955 2,981,526 328,526 3,420,852
Reinvestment of
Dividends and
Distributions .......... 11,344 114,914 24,988 254,743 12,544 132,644 24,648 253,531
Cost of Shares Redeemed .. (445,868) (4,521,950) (790,260) (8,054,136) (85,456) (898,537) (274,258) (2,820,013)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Total Class C
Share Transactions ... 31,604 319,985 325,892 3,341,045 209,043 2,215,633 78,916 854,370
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net Increase (Decrease)
from Capital Stock
Activity ............... 645,865 $ 6,489,807 2,131,879 $ 21,609,236 503,783 $ 5,335,057 (1,360,543) $(13,843,312)
========== ============ ========== ============ ======== =========== ========== ============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 145
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED) AND THE YEARS OR
PERIODS ENDED JULY 31, (UNLESS OTHERWISE INDICATED)
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS
------------------------------ --------------------
NET
ASSET NET REALIZED TOTAL
VALUE, NET AND UNREALIZED TOTAL NET FROM
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL DIVIDENDS AND
OF PERIOD INCOME(LOSS)+ INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
---------------------------------------------------------------------------------------------------------------------
-------------
BALANCED FUND
-------------
FIDUCIARY SHARES
2012* $13.93 $0.089 $0.286 $0.375 $(0.085) $ -- $(0.085)
2011 12.56 0.165 1.427 1.592 (0.222) -- (0.222)
2010 11.31 0.223 1.197 1.420 (0.170) -- (0.170)
2009 12.58 0.211 (1.273)~ (1.062) (0.208) -- (0.208)
2008 14.95 0.292 (1.141) (0.849) (0.285) (1.236) (1.521)
2007 14.06 0.296 1.300 1.596 (0.301) (0.405) (0.706)
CLASS A SHARES
2012* $13.90 $0.072 $0.283 $0.355 $(0.065) $ -- $(0.065)
2011 12.53 0.131 1.430 1.561 (0.191) -- (0.191)
2010 11.29 0.192 1.186 1.378 (0.138) -- (0.138)
2009 12.56 0.185 (1.270)~ (1.085) (0.185) -- (0.185)
2008 14.92 0.256 (1.130) (0.874) (0.250) (1.236) (1.486)
2007 14.04 0.260 1.291 1.551 (0.266) (0.405) (0.671)
CLASS B SHARES
2012* $13.86 $0.032 $0.279 $0.311 $(0.011) $ -- $(0.011)
2011 12.50 0.048 1.424 1.472 (0.112) -- (0.112)
2010 11.25 0.118 1.188 1.306 (0.056) -- (0.056)
2009 12.52 0.122 (1.267)~ (1.145) (0.125) -- (0.125)
2008 14.87 0.175 (1.123) (0.948) (0.166) (1.236) (1.402)
2007 14.00 0.170 1.282 1.452 (0.177) (0.405) (0.582)
CLASS C SHARES
2012* $13.81 $0.032 $0.286 $0.318 $(0.018) $ -- $(0.018)
2011 12.46 0.049 1.418 1.467 (0.117) -- (0.117)
2010 11.22 0.118 1.183 1.301 (0.061) -- (0.061)
2009 12.49 0.121 (1.264)~ (1.143) (0.127) -- (0.127)
2008 14.85 0.171 (1.128) (0.957) (0.167) (1.236) (1.403)
2007 13.98 0.171 1.284 1.455 (0.180) (0.405) (0.585)
--------------------
COGNITIVE VALUE FUND
--------------------
FIDUCIARY SHARES
2012* $11.50 $0.031 $0.198 $0.229 $(0.099) $ -- $(0.099)
2011 9.36 0.093 2.187 2.280 (0.140) -- (0.140)
2010 7.87 0.058 1.503## 1.561 (0.071) -- (0.071)
2009 10.23 0.082 (2.354) (2.272) (0.088) -- (0.088)
2008 13.03 0.082 (1.405) (1.323) (0.097) (1.380) (1.477)
2007 13.03 0.078 1.475 1.553 (0.059) (1.494) (1.553)
CLASS A SHARES
2012* $11.51 $0.017 $0.192 $0.209 $(0.049) $ -- $(0.049)
2011 9.37 0.065 2.194 2.259 (0.119) -- (0.119)
2010 7.89 0.030 1.501## 1.531 (0.051) -- (0.051)
2009 10.19 0.056 (2.341) (2.285) (0.015) -- (0.015)
2008 12.97 0.041 (1.390) (1.349) (0.051) (1.380) (1.431)
2007 13.02 0.037 1.461 1.498 (0.054) (1.494) (1.548)
CLASS C SHARES
2012* $11.20 $(0.015) $0.195 $0.180 $ -- $ -- $ --
2011 9.11 (0.001) 2.122 2.121 (0.031) -- (0.031)
2010 7.68 (0.022) 1.473## 1.451 (0.021) -- (0.021)
2009 10.04 0.008 (2.316) (2.308) (0.052) -- (0.052)
2008 12.89 (0.029) (1.380) (1.409) (0.061) (1.380) (1.441)
2007 12.98 (0.043) 1.447 1.404 -- (1.494) (1.494)
CLASS M SHARES
2012* $11.51 $0.038 $0.192 $0.230 $(0.110) $ -- $(0.110)
2011 9.37 0.108 2.182 2.290 (0.150) -- (0.150)
2010 7.87 0.065 1.508## 1.573 (0.073) -- (0.073)
2009 10.22 0.083 (2.345) (2.262) (0.088) -- (0.088)
2008 13.02 0.084 (1.407) (1.323) (0.097) (1.380) (1.477)
2007 13.02 0.088 1.465 1.553 (0.059) (1.494) (1.553)
RATIO
OF EXPENSES
TO AVERAGE RATIO OF
NET NET NET ASSETS NET
ASSET ASSETS, RATIO EXCLUDING INVESTMENT
VALUE, END OF EXPENSES FEE WAIVERS INCOME (LOSS) PORTFOLIO
REDEMPTION END TOTAL OF PERIOD TO AVERAGE AND REDUCTION TO AVERAGE TURNOVER
FEES OF PERIOD RETURN*** (000) NET ASSETS OF EXPENSES NET ASSETS RATE
-------------------------------------------------------------------------------------------------------------------------------
-------------
BALANCED FUND
-------------
FIDUCIARY SHARES
2012* $-- $14.22 2.74% $ 16,549 0.99% 1.62% 1.32% 27%
2011 -- 13.93 12.72 18,267 0.99 1.54 1.21 50
2010 -- 12.56 12.60 17,552 0.98 1.60 1.81 31
2009 -- 11.31 (8.24) 16,799 0.97 1.56 2.01 48
2008 -- 12.58 (6.52) 22,274 0.96 1.23 2.09 28
2007 -- 14.95 11.47 33,427 0.94 1.12 1.99 23
CLASS A SHARES
2012* $-- $14.19 2.59% $ 6,092 1.24% 1.87% 1.07% 27%
2011 -- 13.90 12.50 6,341 1.24 1.79 0.96 50
2010 -- 12.53 12.24 5,657 1.23 1.85 1.56 31
2009 -- 11.29 (8.46) 4,516 1.22 1.81 1.76 48
2008 -- 12.56 (6.69) 5,829 1.21 1.48 1.84 28
2007 -- 14.92 11.14 7,359 1.19 1.37 1.75 23
CLASS B SHARES
2012* $-- $14.16 2.25% $ 50 1.84% 2.37% 0.47% 27%
2011 -- 13.86 11.80 130 1.84 2.29 0.36 50
2010 -- 12.50 11.62 455 1.83 2.35 0.96 31
2009 -- 11.25 (9.03) 544 1.82 2.31 1.16 48
2008 -- 12.52 (7.21) 1,295 1.80 1.97 1.25 28
2007 -- 14.87 10.44 2,277 1.79 1.87 1.15 23
CLASS C SHARES
2012* $-- $14.11 2.31% $ 864 1.84% 2.37% 0.47% 27%
2011 -- 13.81 11.80 854 1.84 2.29 0.36 50
2010 -- 12.46 11.61 510 1.83 2.35 0.96 31
2009 -- 11.22 (9.03) 333 1.82 2.31 1.16 48
2008 -- 12.49 (7.29) 373 1.81 1.98 1.24 28
2007 -- 14.85 10.48 393 1.79 1.87 1.15 23
--------------------
COGNITIVE VALUE FUND
--------------------
FIDUCIARY SHARES
2012* $--# $11.63 2.09% $ 6,424 1.19% 1.35% 0.60% 125%
2011 --# 11.50 24.32 5,075 1.21 1.33 0.86 216
2010 --# 9.36 20.06## 2,230 1.13 1.33 0.66 152
2009 --# 7.87 (22.10) 1,837 1.03 1.34 1.11 141
2008 --# 10.23 (10.97) 2,294 1.01 1.28 0.75 109
2007 -- 13.03 11.97 2,270 0.94 1.23 0.58 103
CLASS A SHARES
2012* $--# $11.67 1.87% $ 658 1.47% 1.60% 0.32% 125%
2011 --# 11.51 24.05 961 1.47 1.58 0.60 216
2010 --# 9.37 19.60## 655 1.45 1.58 0.34 152
2009 --# 7.89 (22.40) 333 1.40 1.59 0.74 141
2008 --# 10.19 (11.22) 509 1.41 1.53 0.35 109
2007 -- 12.97 11.52 3,766 1.34 1.48 0.28 103
CLASS C SHARES
2012* $--# $11.38 1.61% $ 422 2.07% 2.10% (0.28)% 125%
2011 --# 11.20 23.30 568 2.07 2.08 (0.00) 216
2010 --# 9.11 18.92## 520 2.05 2.08 (0.26) 152
2009 --# 7.68 (22.92) 413 2.02 2.09 0.12 141
2008 --# 10.04 (11.81) 50 2.02 2.05 (0.27) 109
2007 -- 12.89 10.79 31 1.97 2.01 (0.32) 103
CLASS M SHARES
2012* $--# $11.63 2.11% $ 79,565 1.07% 1.10% 0.72% 125%
2011 --# 11.51 24.54 87,921 1.07 1.08 1.00 216
2010 --# 9.37 20.08## 70,390 1.05 1.08 0.74 152
2009 --# 7.87 (22.02) 67,711 1.02 1.09 1.12 141
2008 --# 10.22 (10.98) 91,371 1.01 1.03 0.75 109
2007 -- 13.02 11.98 103,295 0.94 0.97 0.65 103
The accompanying notes are an integral part of the financial statements.
146 HIGHMARK(R) FUNDS
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS
------------------------------ --------------------
NET
ASSET NET REALIZED TOTAL
VALUE, NET AND UNREALIZED TOTAL NET FROM
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL DIVIDENDS AND
OF PERIOD INCOME(LOSS)+ INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
---------------------------------------------------------------------------------------------------------------------
--------------------
ENHANCED GROWTH FUND
--------------------
FIDUCIARY SHARES
2012* $11.20 $(0.015) $0.375 $0.360 $ -- $ -- $ --
2011 9.20 (0.027) 2.027 2.000 -- -- --
2010 8.07 (0.008) 1.151 1.143 (0.013) -- (0.013)
2009 9.26 0.009 (1.199) (1.190) -- -- --
2008 (1) 9.29 (0.022) (0.008) (0.030) -- -- --
CLASS A SHARES
2012* $10.98 $(0.032) $0.362 $0.330 $ -- $ -- $ --
2011 9.05 (0.064) 1.994 1.930 -- -- --
2010 7.96 (0.042) 1.133 1.091 (0.001) -- (0.001)
2009 9.17 (0.018) (1.192) (1.210) -- -- --
2008 10.17 (0.065) (0.935) (1.000) -- -- --
2007 8.05 (0.075) 2.195 2.120 -- -- --
CLASS C SHARES
2012* $10.66 $(0.061) $0.351 $0.290 $ -- $ -- $ --
2011 8.84 (0.126) 1.946 1.820 -- -- --
2010 7.82 (0.093) 1.113 1.020 --# -- --#
2009 9.07 (0.059) (1.191) (1.250) -- -- --
2008 10.12 (0.123) (0.927) (1.050) -- -- --
2007 8.06 (0.133) 2.193 2.060 -- -- --
CLASS M SHARES
2012* $11.21 $(0.011) $0.371 $0.360 $ -- $ -- $ --
2011 9.20 (0.022) 2.032 2.010 -- -- --
2010 8.07 (0.005) 1.150 1.145 (0.015) -- (0.015)
2009 9.27 0.009 (1.209) (1.200) -- -- --
2008 10.24 (0.026) (0.944) (0.970) -- -- --
2007 8.07 (0.035) 2.205 2.170 -- -- --
------------------
EQUITY INCOME FUND
------------------
FIDUCIARY SHARES
2012* $9.21 $ 0.115 $0.330 $0.445 $ (0.125) $ -- $(0.125)
2011 7.88 0.284 1.331 1.615 (0.285) -- (0.285)
2010 6.97 0.245 0.834 1.079 (0.169) -- (0.169)
2009 (2) 6.89 0.003 0.077 0.080 -- -- --
CLASS A SHARES
2012* $9.18 $ 0.103 $0.330 $0.433 $ (0.113) $ -- $(0.113)
2011 7.89 0.248 1.314 1.562 (0.272) -- (0.272)
2010 6.97 0.234 0.883 1.117 (0.197) -- (0.197)
2009 (3) 7.37 0.150 (0.386) (0.236) (0.164) -- (0.164)++
2008 (4) 12.01 0.30^ (4.31) (4.01) (0.28) (0.35) (0.63)
2007 (4) 11.43 0.29^ 0.85 1.14 (0.26) (0.30) (0.56)
2006 (4) 9.77 0.29^ 1.70 1.99 (0.27) (0.06) (0.33)
RATIO
OF EXPENSES
TO AVERAGE RATIO OF
NET NET NET ASSETS NET
ASSET ASSETS, RATIO EXCLUDING INVESTMENT
VALUE, END OF EXPENSES FEE WAIVERS INCOME (LOSS) PORTFOLIO
REDEMPTION END TOTAL OF PERIOD TO AVERAGE AND REDUCTION TO AVERAGE TURNOVER
FEES OF PERIOD RETURN*** (000) NET ASSETS OF EXPENSES NET ASSETS RATE
-------------------------------------------------------------------------------------------------------------------------------
--------------------
ENHANCED GROWTH FUND
--------------------
FIDUCIARY SHARES
2012* $-- $11.56 3.22% $ 2,019 1.11% 1.36% (0.27)% 6%
2011 -- 11.20 21.74 1,980 1.09 1.33 (0.25) 16
2010 -- 9.20 14.17 1,676 1.06 1.33 (0.09) 17
2009 -- 8.07 (12.85) 1,996 1.00 1.31 0.13 24
2008 (1) -- 9.26 (9.57) 1,655 0.99** 1.26** (0.27)** 21
CLASS A SHARES
2012* $-- $11.31 3.01% $ 1,903 1.45% 1.61% (0.61)% 6%
2011 -- 10.98 21.33 1,974 1.45 1.58 (0.61) 16
2010 -- 9.05 13.71 2,277 1.43 1.58 (0.46) 17
2009 -- 7.96 (13.20) 875 1.40 1.56 (0.26) 24
2008 -- 9.17 (9.83) 654 1.38 1.51 (0.66) 21
2007 -- 10.17 26.34 223 1.35 1.49 (0.77) 40
CLASS C SHARES
2012* $-- $10.95 2.72% $ 194 2.05% 2.11% (1.21)% 6%
2011 -- 10.66 20.59 272 2.05 2.08 (1.21) 16
2010 -- 8.84 13.04 180 2.03 2.08 (1.06) 17
2009 -- 7.82 (13.78) 122 2.00 2.06 (0.87) 24
2008 -- 9.07 (10.38) 288 1.99 2.02 (1.27) 21
2007 -- 10.12 25.56 6 1.89 1.92 (1.38) 40
CLASS M SHARES
2012* $-- $11.57 3.21% $ 77,942 1.05% 1.11% (0.21)% 6%
2011 -- 11.21 21.85 86,182 1.05 1.08 (0.21) 16
2010 -- 9.20 14.04 64,408 1.03 1.08 (0.06) 17
2009 -- 8.07 (12.84) 65,867 1.00 1.06 0.13 24
2008 -- 9.27 (9.47) 122,424 0.98 1.01 (0.26) 21
2007 -- 10.24 26.89 137,818 0.93 0.97 (0.37) 40
------------------
EQUITY INCOME FUND
------------------
FIDUCIARY SHARES
2012* $-- $9.53 4.95% $ 8,048 0.89% 1.69% 2.56% 35%
2011 -- 9.21 20.68 5,532 0.90 1.75 3.04 78
2010 -- 7.88 15.50 9 0.90 1.80 3.28 46
2009 (2) -- 6.97 1.16 76 0.90**^^ 2.53**^^ 3.43** 32
CLASS A SHARES
2012* $-- $9.50 4.83% $ 10,391 1.15% 1.94% 2.30% 35%
2011 -- 9.18 19.98 9,259 1.15 2.00 2.79 78
2010 -- 7.89 16.06 9,976 1.15 2.05 3.03 46
2009 (3) -- 6.97 (2.93) 11,793 1.16**^^ 2.47**^^ 3.17** 32
2008 (4) -- 7.37 (34.84) 13,298 1.15 1.68 2.95 83
2007 (4) -- 12.01 10.23 28,991 1.15 1.42 2.51 85
2006 (4) -- 11.43 20.75 18,437 1.15 1.74 2.83 38
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
* FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED). ALL RATIOS
FOR THE PERIOD HAVE BEEN ANNUALIZED.
** ANNUALIZED.
*** TOTAL RETURN DOES NOT REFLECT ANY APPLICABLE SALES CHARGE. TOTAL RETURN IS
FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
~ INCLUDES $0.012 OF FAIR FUNDS SETTLEMENT.
# AMOUNT REPRESENTS LESS THAN $0.001.
## INCLUDES PAYMENT BY AFFILIATES OF $0.001 PER SHARE. THE EFFECTS OF SUCH
PAYMENTS DID NOT AFFECT THE AMOUNT SHOWN AS TOTAL RETURN FOR THE PERIOD.
+ PER SHARE AMOUNTS CALCULATED USING AVERAGE SHARES METHOD, UNLESS OTHERWISE
INDICATED.
++ INCLUDES RETURN OF CAPITAL OF $0.005 FOR CLASS A SHARES.
^ PER SHARE AMOUNTS CALCULATED USING SEC METHOD.
^^ RATIOS OF EXPENSES TO AVERAGE NET ASSETS INCLUDE INTEREST EXPENSES OF LESS
THAN 0.005% FOR THE PERIOD ENDED JULY 31, 2009, WHICH IS NOT INCLUDED IN
THE CONTRACTUAL EXPENSE LIMITATIONS. THE INTEREST EXPENSE IS FROM
UTILIZING A LINE OF CREDIT.
(1) COMMENCED OPERATIONS ON SEPTEMBER 26, 2007.
(2) COMMENCED OPERATIONS ON JULY 24, 2009.
(3) FOR THE NINE MONTH PERIOD ENDED JULY 31, 2009. ON JUNE 8, 2009, HIGHMARK
FUNDS ACQUIRED THE ASSETS AND ASSUMED THE IDENTIFIED LIABILITIES OF NORTH
TRACK EQUITY INCOME FUND, NORTH TRACK GENEVA GROWTH FUND, NORTH TRACK NYSE
ARCA TECH 100 INDEX FUND AND NORTH TRACK WISCONSIN TAX-EXEMPT FUND (THE
"NORTH TRACK FUNDS"). THE FISCAL YEAR END OF THE NORTH TRACK FUNDS, THE
PREDECESSOR FUNDS TO HIGHMARK EQUITY INCOME FUND, HIGHMARK GENEVA MID CAP
GROWTH FUND, HIGHMARK NYSE ARCA TECH 100 INDEX FUND AND HIGHMARK WISCONSIN
TAX-EXEMPT FUND, WAS OCTOBER 31. THE FISCAL YEAR END OF THE SUCCESSOR
HIGHMARK FUNDS IS JULY 31.
(4) FOR THE YEAR ENDED OCTOBER 31
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 147
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED) AND THE YEARS OR
PERIODS ENDED JULY 31, (UNLESS OTHERWISE INDICATED)
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS
------------------------------ --------------------
NET
ASSET NET REALIZED TOTAL
VALUE, NET AND UNREALIZED TOTAL NET FROM
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL DIVIDENDS AND
OF PERIOD INCOME(LOSS)+ INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
-------------------------------------------------------------------------------------------------------------------------------
------------------------------
EQUITY INCOME FUND (CONTINUED)
------------------------------
CLASS B SHARES
2012* $ 9.21 $ 0.076 $0.329 $0.405 $(0.085) $ -- $(0.085)
2011 7.91 0.195 1.321 1.516 (0.216) -- (0.216)
2010 6.99 0.188 0.877 1.065 (0.145) -- (0.145)
2009 (1) 7.35 0.116 (0.368) (0.252) (0.108) -- (0.108)++
2008 (2) 11.95 (0.24)^ (4.33) (4.09) (0.16) (0.35) (0.51)
2007 (2) 11.38 (0.22)^ 0.83 1.05 (0.20) (0.28) (0.48)
2006 (2) 9.74 (0.22)^ 1.69 1.91 (0.21) (0.06) (0.27)
CLASS C SHARES
2012* $ 9.14 $ 0.075 $0.322 $0.397 $(0.087) $ -- $(0.087)
2011 7.85 0.194 1.315 1.509 (0.219) -- (0.219)
2010 6.94 0.187 0.868 1.055 (0.145) -- (0.145)
2009 (1) 7.33 0.115 (0.379) (0.264) (0.126) -- (0.126)++
2008 (2) 11.95 (0.21)^ (4.28) (4.07) (0.20) (0.35) (0.55)
2007 (2) 11.40 (0.22)^ 0.82 1.04 (0.21) (0.28) (0.49)
2006 (2) 9.74 (0.21)^ 1.71 1.92 (0.20) (0.06) (0.26)
--------------------------
GENEVA MID CAP GROWTH FUND
--------------------------
FIDUCIARY SHARES
2012* $22.85 $(0.070) $1.182 $1.112 $ -- $(0.452) $(0.452)
2011 17.98 (0.151) 5.050 4.899 -- (0.029) (0.029)
2010 15.04 (0.110) 3.050 2.940 -- -- --
2009 (3) 14.07 (0.006) 0.976 0.970 -- -- --
CLASS A SHARES
2012* $22.71 $(0.098) $1.170 $1.072 $ -- $(0.452) $(0.452)
2011 17.92 (0.200) 5.019 4.819 -- (0.029) (0.029)
2010 15.03 (0.152) 3.042 2.890 -- -- --
2009 (1) 13.53 (0.103) 1.603 1.500 -- -- --
2008 (2) 21.80 (0.17)^ (6.94) (7.11) -- (1.16) (1.16)
2007 (2) 18.37 (0.18)^ 3.68 3.50 -- (0.07) (0.07)
2006 (2) 16.57 (0.11)^ 1.91 1.80 -- -- --
CLASS B SHARES
2012* $20.70 $(0.148) $1.060 $0.912 $ -- $(0.452) $(0.452)
2011 16.44 (0.299) 4.588 4.289 -- (0.029) (0.029)
2010 13.87 (0.233) 2.803 2.570 -- -- --
2009 (1) 12.55 (0.158) 1.478 1.320 -- -- --
2008 (2) 20.45 (0.34)^ (6.40) (6.74) -- (1.16) (1.16)
2007 (2) 17.37 (0.38)^ 3.53 3.15 -- (0.07) (0.07)
2006 (2) 15.79 (0.28)^ 1.86 1.58 -- -- --
CLASS C SHARES
2012* $20.96 $(0.150) $1.062 $0.912 $ -- $(0.452) $(0.452)
2011 16.64 (0.307) 4.656 4.349 -- (0.029) (0.029)
2010 14.04 (0.237) 2.837 2.600 -- -- --
2009 (1) 12.70 (0.160) 1.500 1.340 -- -- --
2008 (2) 20.69 (0.28)^ (6.55) (6.83) -- (1.16) (1.16)
2007 (2) 17.57 (0.31)^ 3.50 3.19 -- (0.07) (0.07)
2006 (2) 15.97 (0.23)^ 1.83 1.60 -- -- --
----------------------------
GENEVA SMALL CAP GROWTH FUND
----------------------------
FIDUCIARY SHARES
2012* $31.04 $(0.152) $0.929 $0.777 $ -- $(0.928) $(0.928)
2011 24.45 (0.309) 7.926 7.617 -- (1.027) (1.027)
2010 20.70 (0.204) 3.954 3.750 -- -- --
2009 (4) 20.00 (0.018) 0.718 0.700 -- -- --
RATIO
OF EXPENSES
TO AVERAGE RATIO OF
NET NET NET ASSETS NET
ASSET ASSETS, RATIO EXCLUDING INVESTMENT
VALUE, END OF EXPENSES FEE WAIVERS INCOME (LOSS) PORTFOLIO
REDEMPTION END TOTAL OF PERIOD TO AVERAGE AND REDUCTION TO AVERAGE TURNOVER
FEES OF PERIOD RETURN*** (000) NET ASSETS OF EXPENSES NET ASSETS RATE
-------------------------------------------------------------------------------------------------------------------------------
------------------------------
EQUITY INCOME FUND (CONTINUED)
------------------------------
CLASS B SHARES
2012* $ -- $9.53 4.48% $ 1,437 1.75% 2.44% 1.70% 35%
2011 -- 9.21 19.31 1,572 1.75 2.50 2.19 78
2010 -- 7.91 15.25 1,813 1.75 2.55 2.43 46
2009 (1) -- 6.99 (3.24) 2,341 1.87**~ 3.17**~ 2.45** 32
2008 (2) -- 7.35 (35.44) 3,121 1.90 2.42 2.23 83
2007 (2) -- 11.95 9.41 8,590 1.90 2.16 1.87 85
2006 (2) -- 11.38 19.91 7,613 1.90 2.48 2.05 38
CLASS C SHARES
2012* $ -- $9.45 4.42% $ 2,648 1.75% 2.44% 1.70% 35%
2011 -- 9.14 19.37 2,431 1.75 2.50 2.19 78
2010 -- 7.85 15.22 2,194 1.75 2.55 2.43 46
2009 (1) -- 6.94 (3.39) 2,832 1.87**~ 3.17**~ 2.45** 32
2008 (2) -- 7.33 (35.38) 4,057 1.90 2.44 2.18 83
2007 (2) -- 11.95 9.39 7,171 1.90 2.16 1.81 85
2006 (2) -- 11.40 19.96 5,338 1.90 2.45 2.02 38
--------------------------
GENEVA MID CAP GROWTH FUND
--------------------------
FIDUCIARY SHARES
2012* $ -- $23.51 4.92% $ 305,801 1.13% 1.26% (0.64)% 8%
2011 -- 22.85 27.25 215,699 1.13 1.29 (0.67) 23
2010 -- 17.98 19.55 19,588 1.11 1.32 (0.63) 26
2009 (3) -- 15.04 6.89 1,459 1.13**~ 1.25**~ (0.50)** 24
CLASS A SHARES
2012* $ -- $23.33 4.77% $ 240,795 1.38% 1.51% (0.89)% 8%
2011 -- 22.71 26.82 195,872 1.38 1.54 (0.92) 23
2010 -- 17.92 19.22 176,924 1.38 1.57 (0.90) 26
2009 (1) -- 15.03 11.16 148,670 1.70**~ 1.72**~ (1.07)** 24
2008 (2) -- 13.53 (34.29) 132,592 1.38 1.38 (0.91) 22
2007 (2) -- 21.80 19.11 211,653 1.37 1.37 (0.90) 36
2006 (2) -- 18.37 10.86 184,239 1.36 1.36 (0.76) 22
CLASS B SHARES
2012* $ -- $21.16 4.41% $ 4,741 1.98% 2.01% (1.49)% 8%
2011 -- 20.70 26.15 5,579 1.98 2.04 (1.52) 23
2010 -- 16.44 18.53 6,209 1.98 2.07 (1.50) 26
2009 (1) -- 13.87 10.52 7,420 2.42**~ 2.42**~ (1.78)** 24
2008 (2) -- 12.55 (34.77) 8,143 2.13 2.13 (1.66) 22
2007 (2) -- 20.45 18.19 17,627 2.11 2.11 (1.65) 36
2006 (2) -- 17.37 10.01 23,823 2.11 2.11 (1.49) 22
CLASS C SHARES
2012* $ -- $21.42 4.41% $ 45,204 1.98% 2.01% (1.49)% 8%
2011 -- 20.96 26.14 32,580 1.98 2.04 (1.52) 23
2010 -- 16.64 18.52 18,896 1.98 2.07 (1.50) 26
2009 (1) -- 14.04 10.55 14,708 2.42**~ 2.42**~ (1.79)** 24
2008 (2) -- 12.70 (34.80) 14,433 2.13 2.13 (1.66) 22
2007 (2) -- 20.69 18.21 21,790 2.12 2.12 (1.65) 36
2006 (2) -- 17.57 10.02 18,953 2.11 2.11 (1.50) 22
----------------------------
GENEVA SMALL CAP GROWTH FUND
----------------------------
FIDUCIARY SHARES
2012* $0.001 $30.89 2.57% $ 19,036 1.35% 1.87% (1.03)% 19%
2011 --# 31.04 31.28 12,477 1.35 2.00 (1.03) 45
2010 --# 24.45 18.12 6,252 1.37 2.48 (0.89) 62
2009 (4) -- 20.70 3.50 1,598 1.37** 8.34** (0.73)** 7
The accompanying notes are an integral part of the financial statements.
148 HIGHMARK(R) FUNDS
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS
------------------------------ --------------------
NET
ASSET NET REALIZED TOTAL
VALUE, NET AND UNREALIZED TOTAL NET FROM
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL DIVIDENDS AND
OF PERIOD INCOME(LOSS)+ INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
---------------------------------------------------------------------------------------------------------------------
----------------------------------------
GENEVA SMALL CAP GROWTH FUND (CONTINUED)
----------------------------------------
CLASS A SHARES
2012* $30.87 $(0.191) $ 0.918 $ 0.727 $ -- $(0.928) $(0.928
2011 24.39 (0.392) 7.899 7.507 -- (1.027) (1.027)
2010 20.70 (0.264) 3.954 3.690 -- -- --
2009 (4) 20.00 (0.025) 0.725 0.700 -- -- --
CLASS C SHARES
2012* $30.49 $(0.274) $ 0.901 $ 0.627 $ -- $(0.928) $(0.928)
2011 24.23 (0.580) 7.867 7.287 -- (1.027) (1.027)
2010 20.69 (0.401) 3.941 3.540 -- -- --
2009 (4) 20.00 (0.039) 0.729 0.690 -- -- --
--------------------------------
INTERNATIONAL OPPORTUNITIES FUND
--------------------------------
FIDUCIARY SHARES
2012* $ 7.46 $ 0.027 $(1.033) $(1.006) $(0.184) $ -- $(0.184)
2011 6.33 0.122 1.151 1.273 (0.143) -- (0.143)
2010 6.00 0.092 0.392 0.484 (0.154) -- (0.154)
2009 8.48 0.117 (2.343) (2.226) (0.109) (0.145) (0.254)
2008 9.93 0.175 (1.106) (0.931) (0.155) (0.364) (0.519)
2007 8.53 0.154 2.203 2.357 (0.128) (0.829) (0.957)
CLASS A SHARES
2012* $ 7.45 $ 0.022 $(1.031) $(1.009) $(0.161) $ -- $(0.161)
2011 6.32 0.109 1.141 1.250 (0.120) -- (0.120)
2010 5.98 0.082 0.401 0.483 (0.143) -- (0.143)
2009 8.45 0.107 (2.340) (2.233) (0.092) (0.145) (0.237)
2008 9.90 0.157 (1.098) (0.941) (0.145) (0.364) (0.509)
2007 8.52 0.136 2.194 2.330 (0.121) (0.829) (0.950)
CLASS C SHARES
2012* $ 7.37 $ --# $(1.017) $(1.017) $(0.103) $ -- $(0.103)
2011 6.26 0.062 1.133 1.195 (0.085) -- (0.085)
2010 5.92 0.038 0.390 0.428 (0.088) -- (0.088)
2009 8.35 0.068 (2.297) (2.229) (0.056) (0.145) (0.201)
2008 9.81 0.090 (1.088) (0.998) (0.098) (0.364) (0.462)
2007 8.49 0.056 2.193 2.249 (0.100) (0.829) (0.929)
CLASS M SHARES
2012* $ 7.47 $ 0.031 $(1.034) $(1.003) $(0.197) $ -- $(0.197)
2011 6.34 0.135 1.148 1.283 (0.153) -- (0.153)
2010 6.00 0.102 0.398 0.500 (0.160) -- (0.160)
2009 8.48 0.124 (2.343) (2.219) (0.116) (0.145) (0.261)
2008 9.93 0.187 (1.112) (0.925) (0.161) (0.364) (0.525)
2007 8.52 0.139 2.229 2.368 (0.129) (0.829) (0.958)
RATIO
OF EXPENSES
TO AVERAGE RATIO OF
NET NET NET ASSETS NET
ASSET ASSETS, RATIO EXCLUDING INVESTMENT
VALUE, END OF EXPENSES FEE WAIVERS INCOME (LOSS) PORTFOLIO
REDEMPTION END TOTAL OF PERIOD TO AVERAGE AND REDUCTION TO AVERAGE TURNOVER
FEES OF PERIOD RETURN*** (000) NET ASSETS OF EXPENSES NET ASSETS RATE
-------------------------------------------------------------------------------------------------------------------------------
----------------------------------------
GENEVA SMALL CAP GROWTH FUND (CONTINUED)
----------------------------------------
CLASS A SHARES
2012* $0.001 $30.67 2.42% $ 8,898 1.62% 2.12% (1.31)% 19%
2011 --# 30.87 30.90 9,000 1.62 2.25 (1.30) 45
2010 --# 24.39 17.83 3,220 1.62 2.73 (1.15) 62
2009 (4) -- 20.70 3.50 1,988 1.62** 8.59** (0.98)** 7
CLASS C SHARES
2012* $0.001 $30.19 2.12% $ 2,747 2.22% 2.62% (1.91)% 19%
2011 --# 30.49 30.18 2,134 2.22 2.75 (1.90) 45
2010 --# 24.23 17.11 260 2.22 3.23 (1.75) 62
2009 (4) -- 20.69 3.45 36 2.22** 9.09** (1.58)** 7
--------------------------------
INTERNATIONAL OPPORTUNITIES FUND
--------------------------------
FIDUCIARY SHARES
2012* $ --# $ 6.27 (13.21)% $ 73,623 1.38% 1.50% 0.88% 56%
2011 --# 7.46 20.25 93,101 1.45 1.52 1.69 95
2010 --# 6.33 8.03 79,237 1.44 1.53 1.44 84
2009 --# 6.00 (25.64) 63,644 1.39 1.56 2.10 134
2008 --# 8.48 (10.10) 97,714 1.34 1.50 1.86 86
2007 -- 9.93 29.30 60,509 1.26 1.48 1.65 32
CLASS A SHARES
2012* $ --# $ 6.28 (13.43)% $ 3,886 1.55% 1.75% 0.71% 56%
2011 --# 7.45 20.05 5,067 1.62 1.77 1.52 95
2010 --# 6.32 8.04 6,693 1.60 1.78 1.28 84
2009 --# 5.98 (25.77) 10,004 1.57 1.81 1.92 134
2008 --# 8.45 (10.33) 17,766 1.53 1.75 1.68 86
2007 -- 9.90 29.00 14,532 1.50 1.74 1.45 32
CLASS C SHARES
2012* $ --# $ 6.25 (13.66)% $ 1,385 2.25% 2.25% 0.01% 56%
2011 --# 7.37 19.16 2,290 2.27 2.27 0.87 95
2010 --# 6.26 7.39 1,975 2.28 2.28 0.60 84
2009 --# 5.92 (26.34) 2,217 2.27 2.31 1.22 134
2008 --# 8.35 (10.87) 4,582 2.23 2.25 0.98 86
2007 -- 9.81 28.04 3,159 2.18 2.23 0.61 32
CLASS M SHARES
2012* $ --# $ 6.27 (13.14)% $124,853 1.25% 1.25% 1.01% 56%
2011 --# 7.47 20.39 150,888 1.27 1.27 1.87 95
2010 --# 6.34 8.31 133,321 1.28 1.28 1.60 84
2009 --# 6.00 (25.55) 134,220 1.27 1.31 2.22 134
2008 --# 8.48 (10.05) 232,701 1.23 1.25 1.98 86
2007 -- 9.93 29.48 273,474 1.17 1.21 1.51 32
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
* FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED). ALL
RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
** ANNUALIZED.
*** TOTAL RETURN DOES NOT REFLECT ANY APPLICABLE SALES CHARGE. TOTAL
RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
~ RATIOS OF EXPENSES TO AVERAGE NET ASSETS INCLUDE INTEREST EXPENSES
OF LESS THAN 0.005% FOR THE PERIOD ENDED JULY 31, 2009, WHICH IS NOT
INCLUDED IN THE CONTRACTUAL EXPENSE LIMITATIONS. THE INTEREST
EXPENSE IS FROM UTILIZING A LINE OF CREDIT.
# AMOUNT REPRESENTS LESS THAN $0.001.
+ PER SHARE AMOUNTS CALCULATED USING AVERAGE SHARES METHOD, UNLESS
OTHERWISE INDICATED.
++ INCLUDES RETURN OF CAPITAL OF $0.004 FOR CLASS B SHARES AND CLASS C
SHARES.
^ PER SHARE AMOUNTS CALCULATED USING SEC METHOD.
(1) FOR THE NINE MONTH PERIOD ENDED JULY 31, 2009. ON JUNE 8, 2009,
HIGHMARK FUNDS ACQUIRED THE ASSETS AND ASSUMED THE IDENTIFIED
LIABILITIES OF NORTH TRACK EQUITY INCOME FUND, NORTH TRACK GENEVA
GROWTH FUND, NORTH TRACK NYSE ARCA TECH 100 INDEX FUND AND NORTH
TRACK WISCONSIN TAX-EXEMPT FUND (THE "NORTH TRACK FUNDS"). THE
FISCAL YEAR END OF THE NORTH TRACK FUNDS, THE PREDECESSOR FUNDS TO
HIGHMARK EQUITY INCOME FUND, HIGHMARK GENEVA MID CAP GROWTH FUND,
HIGHMARK NYSE ARCA TECH 100 INDEX FUND AND HIGHMARK WISCONSIN
TAX-EXEMPT FUND, WAS OCTOBER 31. THE FISCAL YEAR END OF THE
SUCCESSOR HIGHMARK FUNDS IS JULY 31.
(2) FOR THE YEAR ENDED OCTOBER 31.
(3) COMMENCED OPERATIONS ON JUNE 26, 2009.
(4) COMMENCED OPERATIONS ON JUNE 12, 2009.
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 149
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED) AND THE YEARS OR
PERIODS ENDED JULY 31, (UNLESS OTHERWISE INDICATED)
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS
------------------------------ --------------------
NET
ASSET NET REALIZED TOTAL
VALUE, NET AND UNREALIZED TOTAL NET FROM
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL DIVIDENDS AND
OF PERIOD INCOME(LOSS)+ INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
---------------------------------------------------------------------------------------------------------------------
--------------------------
LARGE CAP CORE EQUITY FUND
--------------------------
FIDUCIARY SHARES
2012* $ 8.49 $ 0.040 $ 0.202 $ 0.242 $(0.042) $ -- $(0.042)
2011 7.24 0.088 1.256 1.344 (0.094) -- (0.094)
2010 6.39 0.081 0.848 0.929 (0.079) -- (0.079)
2009 8.12 0.120 (1.733) (1.613) (0.117) -- (0.117)
2008 9.96 0.132 (1.502) (1.370) (0.133) (0.337) (0.470)
2007 8.78 0.104 1.178 1.282 (0.102) -- (0.102)
CLASS A SHARES
2012* $ 8.47 $ 0.028 $ 0.205 $ 0.233 $(0.033) $ -- $(0.033)
2011 7.23 0.065 1.244 1.309 (0.069) -- (0.069)
2010 6.38 0.061 0.848 0.909 (0.059) -- (0.059)
2009 8.10 0.103 (1.722) (1.619) (0.101) -- (0.101)
2008 9.93 0.108 (1.495) (1.387) (0.106) (0.337) (0.443)
2007 8.76 0.072 1.175 1.247 (0.077) -- (0.077)
CLASS B SHARES
2012* $ 8.29 $ 0.004 $ 0.190 $ 0.194 $(0.004) $ -- $(0.004)
2011 7.06 0.015 1.229 1.244 (0.014) -- (0.014)
2010 6.23 0.017 0.829 0.846 (0.016) -- (0.016)
2009 7.92 0.066 (1.687) (1.621) (0.069) -- (0.069)
2008 9.74 0.050 (1.473) (1.423) (0.060) (0.337) (0.397)
2007 8.61 0.018 1.152 1.170 (0.040) -- (0.040)
CLASS C SHARES
2012* $ 8.24 $ 0.004 $ 0.191 $ 0.195 $(0.015) $ -- $(0.015)
2011 7.03 0.015 1.213 1.228 (0.018) -- (0.018)
2010 6.21 0.017 0.821 0.838 (0.018) -- (0.018)
2009 7.92 0.064 (1.699) (1.635) (0.075) -- (0.075)
2008 9.74 0.052 (1.472) (1.420) (0.063) (0.337) (0.400)
2007 8.61 0.013 1.155 1.168 (0.038) -- (0.038)
---------------------
LARGE CAP GROWTH FUND
---------------------
FIDUCIARY SHARES
2012* $10.31 $ 0.016 $ 0.141 $ 0.157 $(0.017) $ -- $(0.017)
2011 8.81 0.021 1.598 1.619 (0.119) -- (0.119)
2010 7.87 0.101 0.909 1.010 (0.070) -- (0.070)
2009 9.11 0.072 (1.263)^ (1.191) (0.049) -- (0.049)
2008 10.03 0.068 (0.933) (0.865) (0.055) -- (0.055)
2007 8.77 0.040 1.231 1.271 (0.011) -- (0.011)
CLASS A SHARES
2012* $10.12 $ 0.003 $ 0.137 $ 0.140 $ -- $ -- $ --
2011 8.64 (0.005) 1.572 1.567 (0.087) -- (0.087)
2010 7.74 0.076 0.891 0.967 (0.067) -- (0.067)
2009 8.95 0.051 (1.238)^ (1.187) (0.023) -- (0.023)
2008 9.85 0.040 (0.916) (0.876) (0.024) -- (0.024)
2007 8.63 0.014 1.206 1.220 -- -- --
CLASS B SHARES
2012* $ 9.47 $(0.024) $ 0.124 $ 0.100 $ -- $ -- $ --
2011 8.07 (0.060) 1.460 1.400 -- -- --
2010 7.22 0.023 0.827 0.850 -- -- --
2009 8.35 0.008 (1.138)^ (1.130) -- -- --
2008 9.23 (0.017) (0.863) (0.880) -- -- --
2007 8.13 (0.040) 1.140 1.100 -- -- --
CLASS C SHARES
2012* $ 9.38 $(0.024) $ 0.124 $ 0.100 $ -- $ -- $ --
2011 8.02 (0.059) 1.451 1.392 (0.032) -- (0.032)
2010 7.21 0.023 0.834 0.857 (0.047) -- (0.047)
2009 8.36 0.008 (1.158)^ (1.150) -- -- --
2008 9.23 (0.018) (0.852) (0.870) -- -- --
2007 8.14 (0.039) 1.129 1.090 -- -- --
RATIO
OF EXPENSES
TO AVERAGE RATIO OF
NET NET NET ASSETS NET
ASSET ASSETS, RATIO EXCLUDING INVESTMENT
VALUE, END OF EXPENSES FEE WAIVERS INCOME (LOSS) PORTFOLIO
REDEMPTION END TOTAL OF PERIOD TO AVERAGE AND REDUCTION TO AVERAGE TURNOVER
FEES OF PERIOD RETURN*** (000) NET ASSETS OF EXPENSES NET ASSETS RATE
-------------------------------------------------------------------------------------------------------------------------------
--------------------------
LARGE CAP CORE EQUITY FUND
--------------------------
FIDUCIARY SHARES
2012* $-- $ 8.69 2.92% $ 62,250 0.94% 1.26% 0.99% 48%
2011 -- 8.49 18.63 53,369 0.96 1.23 1.09 68
2010 -- 7.24 14.56 55,593 0.95 1.22 1.13 93
2009 -- 6.39 (19.59) 60,454 0.92 1.19 2.00 42
2008 -- 8.12 (14.35) 95,872 0.90 1.11 1.46 56
2007 -- 9.96 14.61 127,266 0.91 1.08 1.05 79
CLASS A SHARES
2012* $-- $ 8.67 2.79% $ 3,134 1.23% 1.51% 0.70% 48%
2011 -- 8.47 18.15 3,027 1.25 1.48 0.79 68
2010 -- 7.23 14.27 2,640 1.23 1.47 0.85 93
2009 -- 6.38 (19.83) 2,004 1.20 1.44 1.72 42
2008 -- 8.10 (14.45) 3,400 1.19 1.37 1.17 56
2007 -- 9.93 14.24 8,664 1.18 1.34 0.72 79
CLASS B SHARES
2012* $-- $ 8.48 2.35% $ 6 1.83% 2.01% 0.10% 48%
2011 -- 8.29 17.62 86 1.85 1.98 0.19 68
2010 -- 7.06 13.58 451 1.83 1.97 0.25 93
2009 -- 6.23 (20.35) 900 1.80 1.94 1.12 42
2008 -- 7.92 (15.08) 1,873 1.79 1.86 0.57 56
2007 -- 9.74 13.57 2,663 1.78 1.83 0.19 79
CLASS C SHARES
2012* $-- $ 8.42 2.39% $ 1,094 1.83% 2.01% 0.10% 48%
2011 -- 8.24 17.48 640 1.85 1.98 0.19 68
2010 -- 7.03 13.50 441 1.83 1.97 0.25 93
2009 -- 6.21 (20.52) 446 1.80 1.94 1.12 42
2008 -- 7.92 (15.05) 664 1.77 1.84 0.59 56
2007 -- 9.74 13.59 811 1.78 1.83 0.13 79
---------------------
LARGE CAP GROWTH FUND
---------------------
FIDUCIARY SHARES
2012* $-- $10.45 1.53% $ 54,266 1.01% 1.29% 0.32% 37%
2011 -- 10.31 18.41 57,207 1.01 1.24 0.21 41
2010 -- 8.81 12.82 60,078 0.99 1.21 1.16 34
2009 -- 7.87 (12.97) 67,051 0.93 1.17 0.99 60
2008 -- 9.11 (8.70) 92,418 0.94 1.11 0.68 43
2007 -- 10.03 14.50 110,600 0.93 1.09 0.42 88
CLASS A SHARES
2012* $-- $10.26 1.38% $ 16,051 1.27% 1.54% 0.05% 37%
2011 -- 10.12 18.16 16,621 1.27 1.49 (0.05) 41
2010 -- 8.64 12.48 19,881 1.25 1.46 0.89 34
2009 -- 7.74 (13.21) 17,543 1.21 1.42 0.72 60
2008 -- 8.95 (8.92) 11,486 1.21 1.36 0.41 43
2007 -- 9.85 14.14 14,284 1.19 1.34 0.15 88
CLASS B SHARES
2012* $-- $ 9.57 1.06% $ 1,048 1.87% 2.04% (0.55)% 37%
2011 -- 9.47 17.35 1,881 1.87 1.99 (0.65) 41
2010 -- 8.07 11.77 3,126 1.85 1.96 0.29 34
2009 -- 7.22 (13.53) 5,292 1.81 1.92 0.12 60
2008 -- 8.35 (9.53) 3,279 1.81 1.85 (0.19) 43
2007 -- 9.23 13.53 5,835 1.79 1.84 (0.45) 88
CLASS C SHARES
2012* $-- $ 9.48 1.07% $ 2,820 1.87% 2.04% (0.55)% 37%
2011 -- 9.38 17.36 2,861 1.87 1.99 (0.65) 41
2010 -- 8.02 11.88 3,250 1.85 1.96 0.29 34
2009 -- 7.21 (13.76) 3,481 1.81 1.92 0.12 60
2008 -- 8.36 (9.43) 766 1.82 1.86 (0.20) 43
2007 -- 9.23 13.39 1,097 1.79 1.84 (0.44) 88
The accompanying notes are an integral part of the financial statements.
150 HIGHMARK(R) FUNDS
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS
------------------------------ -------------------
NET
ASSET NET REALIZED TOTAL
VALUE, NET AND UNREALIZED TOTAL NET FROM
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL DIVIDENDS AND
OF PERIOD INCOME (LOSS)+ INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
--------------------------------------------------------------------------------------------------------------
--------------------
LARGE CAP VALUE FUND
--------------------
FIDUCIARY SHARES
2012* $11.40 $ 0.068 $(0.333) $(0.265) $(0.075) $ -- $(0.075)
2011 10.27 0.116 1.240 1.356 (0.226) -- (0.226)
2010 9.36 0.191 0.849 1.040 (0.130) -- (0.130)
2009 11.85 0.175 (2.489) (2.314) (0.176) -- (0.176)
2008 15.16 0.208 (2.444) (2.236) (0.214) (0.860) (1.074)
2007 13.67 0.211 1.483 1.694 (0.204) -- (0.204)
CLASS A SHARES
2012* $11.43 $ 0.053 $(0.336) $(0.283) $(0.057) $ -- $(0.057)
2011 10.30 0.085 1.242 1.327 (0.197) -- (0.197)
2010 9.38 0.164 0.859 1.023 (0.103) -- (0.103)
2009 11.88 0.155 (2.503) (2.348) (0.152) -- (0.152)
2008 15.19 0.177 (2.450) (2.273) (0.177) (0.860) (1.037)
2007 13.70 0.171 1.485 1.656 (0.166) -- (0.166)
CLASS B SHARES
2012* $11.21 $ 0.022 $(0.328) $(0.306) $(0.014) $ -- $(0.014)
2011 10.11 0.016 1.220 1.236 (0.136) -- (0.136)
2010 9.21 0.100 0.842 0.942 (0.042) -- (0.042)
2009 11.67 0.097 (2.459) (2.362) (0.098) -- (0.098)
2008 14.94 0.092 (2.402) (2.310) (0.100) (0.860) (0.960)
2007 13.50 0.082 1.458 1.540 (0.100) -- (0.100)
CLASS C SHARES
2012* $11.17 $ 0.022 $(0.325) $(0.303) $(0.017) $ -- $(0.017)
2011 10.08 0.016 1.212 1.228 (0.138) -- (0.138)
2010 9.18 0.100 0.843 0.943 (0.043) -- (0.043)
2009 11.64 0.097 (2.457) (2.360) (0.100) -- (0.100)
2008 14.90 0.090 (2.390) (2.300) (0.100) (0.860) (0.960)
2007 13.47 0.079 1.452 1.531 (0.101) -- (0.101)
-----------------------------
NYSE ARCA TECH 100 INDEX FUND
-----------------------------
FIDUCIARY SHARES
2012* $32.26 $ 0.026 $ 1.124 $ 1.150 $ -- $ -- $ --
2011 25.69 0.050 6.520 6.570 -- -- --
2010 22.06 (0.002) 3.632 3.630 -- -- --
2009 (1) 22.04 0.001 0.019 0.020 -- -- --
CLASS A SHARES
2012* $32.07 $ (0.015) $ 1.125 $ 1.110 $ -- $ -- $ --
2011 25.62 (0.046) 6.496 6.450 -- -- --
2010 22.06 (0.063) 3.623 3.560 -- -- --
2009 (2) 18.53 (0.029) 3.559 3.530 -- -- --
2008 (3) 29.13 (0.10)^^ (10.50) (10.60) -- -- --
2007 (3) 24.67 (0.12)^^ 4.58 4.46 -- -- --
2006 (3) 23.10 (0.12)^^ 1.69 1.57 -- -- --
RATIO
OF EXPENSES
TO AVERAGE RATIO OF
NET NET NET ASSETS NET
ASSET ASSETS, RATIO EXCLUDING INVESTMENT
VALUE, END OF EXPENSES FEE WAIVERS INCOME (LOSS) PORTFOLIO
REDEMPTION END TOTAL OF PERIOD TO AVERAGE AND REDUCTION TO AVERAGE TURNOVER
FEES OF PERIOD RETURN*** (000) NET ASSETS OF EXPENSES NET ASSETS RATE
---------------------------------------------------------------------------------------------------------------------
--------------------
LARGE CAP VALUE FUND
--------------------
FIDUCIARY SHARES
2012* $-- $11.06 (2.26)% $ 44,936 0.96% 1.28% 1.33% 9%
2011 -- 11.40 13.27 73,026 0.97 1.19 1.02 47
2010 -- 10.27 11.12 97,347 0.97 1.16 1.85 117
2009 -- 9.36 (19.43) 151,262 0.94 1.11 1.93 66
2008 -- 11.85 (15.65) 171,314 0.90 1.09 1.53 65
2007 -- 15.16 12.40 216,156 0.89 1.08 1.39 84
CLASS A SHARES
2012* $-- $11.09 (2.43)% $ 18,401 1.25% 1.53% 1.03% 9%
2011 -- 11.43 12.95 20,160 1.25 1.44 0.74 47
2010 -- 10.30 10.91 22,407 1.23 1.41 1.59 117
2009 -- 9.38 (19.69) 28,212 1.20 1.36 1.67 66
2008 -- 11.88 (15.85) 42,433 1.16 1.34 1.27 65
2007 -- 15.19 12.09 153,045 1.14 1.33 1.13 84
CLASS B SHARES
2012* $-- $10.89 (2.72)% $ 451 1.85% 2.03% 0.43% 9%
2011 -- 11.21 12.28 747 1.85 1.94 0.14 47
2010 -- 10.11 10.23 1,265 1.83 1.91 0.99 117
2009 -- 9.21 (20.18) 2,101 1.80 1.86 1.07 66
2008 -- 11.67 (16.33) 1,287 1.76 1.83 0.68 65
2007 -- 14.94 11.40 2,502 1.74 1.83 0.55 84
CLASS C SHARES
2012* $-- $10.85 (2.70)% $ 1,937 1.85% 2.03% 0.43% 9%
2011 -- 11.17 12.24 2,168 1.85 1.94 0.14 47
2010 -- 10.08 10.27 3,232 1.83 1.91 0.99 117
2009 -- 9.18 (20.22) 4,025 1.80 1.86 1.07 66
2008 -- 11.64 (16.31) 5,192 1.77 1.84 0.67 65
2007 -- 14.90 11.36 7,742 1.74 1.83 0.53 84
-----------------------------
NYSE ARCA TECH 100 INDEX FUND
-----------------------------
FIDUCIARY SHARES
2012* $-- $33.41 3.56% $ 9,949 0.81% 1.05% 0.17% 5%
2011 -- 32.26 25.58 5,990 0.77 1.02 0.16 11
2010 -- 25.69 16.46 312 0.83 1.00 (0.01) 9
2009 (1) -- 22.06 0.09 20 0.83**~# 0.97**~# 0.24**# 10
CLASS A SHARES
2012* $-- $33.18 3.43% $ 171,862 1.08% 1.30% (0.10)% 5%
2011 -- 32.07 25.17 182,410 1.08 1.27 (0.15) 11
2010 -- 25.62 16.18 162,267 1.08 1.25 (0.26) 9
2009 (2) -- 22.06 19.05 166,899 1.27**~# 1.42**~ (0.21)**# 10
2008 (3) -- 18.53 (36.39) 157,076 1.08++ 1.08 (0.37)++ 19
2007 (3) -- 29.13 18.08 279,501 0.99++ 0.99 (0.45)++ 14
2006 (3) -- 24.67 6.80 275,177 0.99## 0.99 (0.47)## 11
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
* FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED). ALL
RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
** ANNUALIZED.
*** TOTAL RETURN DOES NOT REFLECT ANY APPLICABLE SALES CHARGE. TOTAL
RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
~ RATIOS OF EXPENSES TO AVERAGE NET ASSETS INCLUDE INTEREST EXPENSES
OF LESS THAN 0.005% FOR THE PERIOD ENDED JULY 31, 2009, WHICH IS NOT
INCLUDED IN THE CONTRACTUAL EXPENSES LIMITATION. THE INTEREST
EXPENSE IS FROM UTILIZING A LINE OF CREDIT.
+ PER SHARE AMOUNTS CALCULATED USING AVERAGE SHARES METHOD, UNLESS
OTHERWISE INDICATED.
++ DOES NOT REFLECT VENDOR REIMBURSEMENT OF 0.03%.
# DOES NOT REFLECT VENDOR REIMBURSEMENT OF 0.08%.
## DOES NOT REFLECT VENDOR REIMBURSEMENT OF 0.02%.
^ INCLUDES $0.017 OF FAIR FUNDS SETTLEMENT.
^^ PER SHARE AMOUNTS CALCULATED USING SEC METHODS.
(1) COMMENCED OPERATIONS ON JULY 23, 2009.
(2) FOR THE NINE MONTH PERIOD ENDED JULY 31, 2009. ON JUNE 8, 2009,
HIGHMARK FUNDS ACQUIRED THE ASSETS AND ASSUMED THE IDENTIFIED
LIABILITIES OF NORTH TRACK EQUITY INCOME FUND, NORTH TRACK GENEVA
GROWTH FUND, NORTH TRACK NYSE ARCA TECH 100 INDEX FUND AND NORTH
TRACK WISCONSIN TAX-EXEMPT FUND (THE "NORTH TRACK FUNDS"). THE
FISCAL YEAR END OF THE NORTH TRACK FUNDS, THE PREDECESSOR FUNDS TO
HIGHMARK EQUITY INCOME FUND, HIGHMARK GENEVA GROWTH FUND, HIGHMARK
NYSE ARCA TECH 100 INDEX FUND AND HIGHMARK WISCONSIN TAX-EXEMPT
FUND, WAS OCTOBER 31. THE FISCAL YEAR END OF THE SUCCESSOR HIGHMARK
FUNDS IS JULY 31.
(3) FOR THE YEAR ENDED OCTOBER 31.
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 151
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED) AND THE YEARS OR
PERIODS ENDED JULY 31, (UNLESS OTHERWISE INDICATED)
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS
------------------------------ -------------------
NET
ASSET NET REALIZED TOTAL
VALUE, NET AND UNREALIZED TOTAL NET FROM
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL DIVIDENDS AND
OF PERIOD INCOME (LOSS)+ INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------
NYSE ARCA TECH 100 INDEX FUND (CONTINUED)
-----------------------------------------
CLASS B SHARES
2012* $29.05 $(0.096) $ 1.006 $0.910 $ -- $ -- $ --
2011 23.35 (0.206) 5.906 5.700 -- -- --
2010 20.22 (0.191) 3.321 3.130 -- -- --
2009 (1) 17.08 (0.115) 3.255 3.140 -- -- --
2008 (2) 27.06 (0.37)^ (9.61) (9.98) -- -- --
2007 (2) 23.09 (0.37)^ 4.34 3.97 -- -- --
2006 (2) 21.78 (0.31)^ 1.62 1.31 -- -- --
CLASS C SHARES
2012* $29.58 $(0.098) $ 1.028 $0.930 $ -- $ -- $ --
2011 23.78 (0.212) 6.012 5.800 -- -- --
2010 20.59 (0.196) 3.386 3.190 -- -- --
2009 (1) 17.39 (0.117) 3.317 3.200 -- -- --
2008 (2) 27.55 (0.30)^ (9.86) (10.16) -- -- --
2007 (2) 23.51 (0.32)^ 4.36 4.04 -- -- --
2006 (2) 22.17 (0.31)^ 1.65 1.34 -- -- --
-------------------
SMALL CAP CORE FUND
-------------------
FIDUCIARY SHARES
2012* $19.24 $ 0.010 $(0.480) $(0.470) $ -- $ -- $ --
2011 14.54 (0.055) 4.755 4.700 -- -- --
2010 11.85 (0.041) 2.787 2.746 (0.056) -- (0.056)
2009 16.45 0.055 (4.636) (4.581) (0.019) -- (0.019)
2008 18.83 0.089 (2.249) (2.160) (0.110) (0.110) (0.220)
2007 (3) 20.00 0.052 (1.222) (1.170) -- -- --
CLASS A SHARES
2012* $19.09 $(0.017) $(0.473) $(0.490) $ -- $ -- $ --
2011 14.47 (0.111) 4.731 4.620 -- -- --
2010 11.80 (0.084) 2.779 2.695 (0.025) -- (0.025)
2009 16.43 0.020 (4.634) (4.614) (0.016) -- (0.016)
2008 18.82 0.038 (2.246) (2.208) (0.072) (0.110) (0.182)
2007 (3) 20.00 0.021 (1.201) (1.180) -- -- --
CLASS C SHARES
2012* $18.65 $(0.069) $(0.471) $(0.540) $ -- $ -- $ --
2011 14.22 (0.216) 4.646 4.430 -- -- --
2010 11.65 (0.161) 2.731 2.570 -- -- --
2009 16.36 (0.048) (4.662) (4.710) -- -- --
2008 18.80 (0.062) (2.254) (2.316) (0.014) (0.110) (0.124)
2007 (3) 20.00 (0.031) (1.169) (1.200) -- -- --
-------------------
VALUE MOMENTUM FUND
-------------------
FIDUCIARY SHARES
2012* $16.09 $ 0.102 $(0.158) $(0.056) $(0.111) $(0.653) $(0.764)
2011 13.64 0.192 2.572 2.764 (0.314) -- (0.314)
2010 12.17 0.265 1.368 1.633 (0.163) -- (0.163)
2009 17.53 0.221 (4.399) (4.178) (0.223) (0.959) (1.182)
2008 24.21 0.279 (2.950) (2.671) (0.283) (3.726) (4.009)
2007 23.25 0.343 3.381 3.724 (0.343) (2.421) (2.764)
CLASS A SHARES
2012* $16.05 $ 0.083 $(0.158) $(0.075) $(0.092) $(0.653) $(0.745)
2011 13.61 0.153 2.566 2.719 (0.279) -- (0.279)
2010 12.14 0.230 1.369 1.599 (0.129) -- (0.129)
2009 17.50 0.186 (4.395) (4.209) (0.192) (0.959) (1.151)
2008 24.17 0.224 (2.934) (2.710) (0.234) (3.726) (3.960)
2007 23.22 0.282 3.373 3.655 (0.284) (2.421) (2.705)
RATIO
OF EXPENSES
TO AVERAGE RATIO OF
NET NET NET ASSETS NET
ASSET ASSETS, RATIO EXCLUDING INVESTMENT
VALUE, END OF EXPENSES FEE WAIVERS INCOME (LOSS) PORTFOLIO
REDEMPTION END TOTAL OF PERIOD TO AVERAGE AND REDUCTION TO AVERAGE TURNOVER
FEES OF PERIOD RETURN*** (000) NET ASSETS OF EXPENSES NET ASSETS RATE
------------------------------------------------------------------------------------------------
-----------------------------------------
NYSE ARCA TECH 100 INDEX FUND (CONTINUED)
-----------------------------------------
CLASS B SHARES
2012* $-- $29.96 3.10% $ 5,251 1.68% 1.80% (0.70)% 5%
2011 -- 29.05 24.46 7,102 1.68 1.77 (0.75) 11
2010 -- 23.35 15.48 9,889 1.68 1.75 (0.86) 9
2009 (1) -- 20.22 18.38 14,422 1.99**~# 2.11**~ (0.92)**# 10
2008 (2) -- 17.08 (36.88) 17,314 1.82++ 1.82 (1.10)++ 19
2007 (2) -- 27.06 17.19 54,103 1.74++ 1.74 (1.20)++ 14
2006 (2) -- 23.09 6.01 74,106 1.74## 1.74 (1.22)## 11
CLASS C SHARES
2012* $-- $30.51 3.11% $ 11,149 1.68% 1.80% (0.70)% 5%
2011 -- 29.58 24.43 11,269 1.68 1.77 (0.75) 11
2010 -- 23.78 15.49 10,680 1.68 1.75 (0.86) 9
2009 (1) -- 20.59 18.40 10,620 1.99**~# 2.11**~ (0.92)**# 10
2008 (2) -- 17.39 (36.88) 12,839 1.82++ 1.82 (1.12)++ 19
2007 (2) -- 27.55 17.18 26,946 1.74++ 1.74 (1.20)++ 14
2006 (2) -- 23.51 6.04 27,514 1.74## 1.74 (1.22)## 11
-------------------
SMALL CAP CORE FUND
-------------------
FIDUCIARY SHARES
2012* $--+++ $18.77 (2.44)% $ 48,319 1.32% 1.60% 0.11% 79%
2011 --+++ 19.24 32.33 27,137 1.31 1.76 (0.31) 67
2010 -- 14.54 23.32 23,527 1.30 1.79 (0.30) 78
2009 --+++ 11.85 (27.90) 22,084 1.27 1.85 0.48 61
2008 -- 16.45 (11.48) 26,984 1.26 1.67 0.54 87
2007 (3) -- 18.83 (5.85) 27,572 1.30** 1.60** 0.61** 26
CLASS A SHARES
2012* $--+++ $18.60 (2.62)% $ 11,771 1.62% 1.85% (0.19)% 79%
2011 --+++ 19.09 32.00 536 1.62 2.01 (0.62) 67
2010 -- 14.47 22.86 310 1.60 2.04 (0.61) 78
2009 --+++ 11.80 (28.08) 227 1.57 2.10 0.18 61
2008 -- 16.43 (11.74) 168 1.57 1.91 0.23 87
2007 (3) -- 18.82 (5.90) 117 1.56** 2.02** 0.24** 26
CLASS C SHARES
2012* $--+++ $18.11 (2.90)% $ 4,092 2.22% 2.35% (0.79)% 79%
2011 --+++ 18.65 31.15 217 2.22 2.51 (1.22) 67
2010 -- 14.22 22.17 77 2.20 2.54 (1.21) 78
2009 --+++ 11.65 (28.85) 87 2.17 2.60 (0.42) 61
2008 -- 16.36 (12.33) 133 2.17 2.43 (0.38) 87
2007 (3) -- 18.80 (6.00) 131 2.17** 2.62** (0.35)** 26
-------------------
VALUE MOMENTUM FUND
-------------------
FIDUCIARY SHARES
2012* $-- $15.27 (0.11)% $ 127,469 1.02% 1.14% 1.39% 17%
2011 -- 16.09 20.50 234,785 1.02 1.13 1.24 26
2010 -- 13.64 13.43 228,162 1.00 1.11 1.95 12
2009 -- 12.17 (23.11) 229,771 0.96 1.09 1.82 20
2008 -- 17.53 (12.99) 328,465 0.95 1.08 1.34 17
2007 -- 24.21 16.38 445,763 0.94 1.08 1.41 19
CLASS A SHARES
2012* $-- $15.23 (0.18)% $ 66,801 1.27% 1.39% 1.13% 17%
2011 -- 16.05 20.12 71,164 1.27 1.38 0.99 26
2010 -- 13.61 13.18 72,132 1.25 1.36 1.70 12
2009 -- 12.14 (23.30) 75,156 1.21 1.34 1.57 20
2008 -- 17.50 (13.22) 24,772 1.21 1.33 1.08 17
2007 -- 24.17 16.08 31,773 1.19 1.33 1.15 19
The accompanying notes are an integral part of the financial statements.
152 HIGHMARK(R) FUNDS
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS
------------------------------- ---------------------
NET
ASSET NET REALIZED TOTAL
VALUE, NET AND UNREALIZED TOTAL NET FROM
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL DIVIDENDS AND
OF PERIOD INCOME (LOSS)+ INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
-----------------------------------------------------------------------------------------------------------------------
-------------------------------
VALUE MOMENTUM FUND (CONTINUED)
-------------------------------
CLASS B SHARES
2012* $15.69 $0.038 $(0.150) $(0.112) $(0.045) $(0.653) $(0.698)
2011 13.32 0.059 2.506 2.565 (0.195) -- (0.195)
2010 11.88 0.146 1.339 1.485 (0.045) -- (0.045)
2009 17.16 0.115 (4.312) (4.197) (0.124) (0.959) (1.083)
2008 23.79 0.100 (2.880) (2.780) (0.124) (3.726) (3.850)
2007 22.92 0.136 3.325 3.461 (0.170) (2.421) (2.591)
CLASS C SHARES
2012* $15.63 $0.039 $(0.157) $(0.118) $(0.049) $(0.653) $(0.702)
2011 13.26 0.059 2.509 2.568 (0.198) -- (0.198)
2010 11.84 0.145 1.322 1.467 (0.047) -- (0.047)
2009 17.10 0.113 (4.289) (4.176) (0.125) (0.959) (1.084)
2008 23.72 0.107 (2.866) (2.759) (0.135) (3.726) (3.861)
2007 22.86 0.127 3.330 3.457 (0.176) (2.421) (2.597)
CLASS U SHARES
2012* (4) $14.85 $0.016 $ 0.414 $ 0.430 $ -- $ -- $ --
---------------------------------------
TACTICAL CAPITAL GROWTH ALLOCATION FUND
---------------------------------------
FIDUCIARY SHARES
2012* $21.37 $0.183 $(0.409) $(0.226) $(0.184) $ -- $(0.184)
2011 18.27 0.210 3.100 3.310 (0.210) -- (0.210)
2010 16.15 0.176 2.112 2.288 (0.168) -- (0.168)
2009 21.86 0.196 (4.304) (4.108) (0.230) (1.372) (1.602)
2008 25.72 0.306 (2.894) (2.588) (0.360) (0.912) (1.272)
2007 (5) 25.10 0.140 1.218 1.358 (0.419) (0.319) (0.738)
CLASS A SHARES
2012* $21.34 $0.155 $(0.411) $(0.256) $(0.144) $ -- $(0.144)
2011 18.24 0.163 3.097 3.260 (0.160) -- (0.160)
2010 16.14 0.131 2.103 2.234 (0.134) -- (0.134)
2009 21.85 0.167 (4.317) (4.150) (0.188) (1.372) (1.560)
2008 25.72 0.233 (2.886) (2.653) (0.305) (0.912) (1.217)
2007 23.17 0.262 3.002 3.264 (0.395) (0.319) (0.714)
CLASS C SHARES
2012* $21.10 $0.085 $(0.398) $(0.313) $(0.037) $ -- $(0.037)
2011 18.03 0.014 3.063 3.077 (0.007) -- (0.007)
2010 15.99 0.006 2.089 2.095 (0.055) -- (0.055)
2009 21.55 0.058 (4.246) (4.188) -- (1.372) (1.372)
2008 25.42 0.063 (2.849) (2.786) (0.172) (0.912) (1.084)
2007 22.97 0.069 2.989 3.058 (0.289) (0.319) (0.608)
RATIO
OF EXPENSES
TO AVERAGE RATIO OF
NET NET NET ASSETS NET
ASSET ASSETS, RATIO EXCLUDING INVESTMENT
VALUE, END OF EXPENSES FEE WAIVERS INCOME (LOSS) PORTFOLIO
REDEMPTION END TOTAL OF PERIOD TO AVERAGE AND REDUCTION TO AVERAGE TURNOVER
FEES OF PERIOD RETURN*** (000) NET ASSETS OF EXPENSES NET ASSETS RATE
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------
VALUE MOMENTUM FUND (CONTINUED)
-------------------------------
CLASS B SHARES
2012* $-- $14.88 (0.46)% $ 1,437 1.87% 1.89% 0.53% 17%
2011 -- 15.69 19.37 2,212 1.87 1.88 0.39 26
2010 -- 13.32 12.51 3,439 1.85 1.86 1.10 12
2009 -- 11.88 (23.74) 5,722 1.81 1.84 0.97 20
2008 -- 17.16 (13.74) 3,823 1.80 1.83 0.49 17
2007 -- 23.79 15.38 6,772 1.79 1.83 0.56 19
CLASS C SHARES
2012* $-- $14.81 (0.50)% $ 2,227 1.87% 1.89% 0.53% 17%
2011 -- 15.63 19.48 2,503 1.87 1.88 0.39 26
2010 -- 13.26 12.50 2,548 1.85 1.86 1.10 12
2009 -- 11.84 (23.76) 3,058 1.81 1.84 0.97 20
2008 -- 17.10 (13.69) 1,500 1.76 1.79 0.53 17
2007 -- 23.72 15.40 2,061 1.79 1.83 0.53 19
CLASS U SHARES
2012* (4) $-- $15.28 2.90% $98,698 0.87% 0.89% 1.53% 17%
---------------------------------------
TACTICAL CAPITAL GROWTH ALLOCATION FUND
---------------------------------------
FIDUCIARY SHARES
2012* $-- $20.96 (0.99)% $ 747 0.32% 0.95% 1.82% 27%
2011 -- 21.37 18.18 213 0.32 0.93 1.02 37
2010 -- 18.27 14.17 190 0.33 0.92 0.98 30
2009 -- 16.15 (17.46) 179 0.33 0.81 1.31 48
2008 -- 21.86 (10.56) 171 0.33 0.70 1.23 25
2007 (5) -- 25.72 5.50 770 0.31** 0.70** 0.75** 16
CLASS A SHARES
2012* $-- $20.94 (1.15)% $27,132 0.58% 1.20% 1.57% 27%
2011 -- 21.34 17.91 26,327 0.57 1.18 0.77 37
2010 -- 18.24 13.84 23,808 0.58 1.17 0.73 30
2009 -- 16.14 (17.68) 23,780 0.58 1.06 1.06 48
2008 -- 21.85 (10.81) 39,324 0.59 0.95 0.97 25
2007 -- 25.72 14.19 49,073 0.57 0.93 1.03 16
CLASS C SHARES
2012* $-- $20.75 (1.47)% $21,138 1.28% 1.70% 0.87% 27%
2011 -- 21.10 17.07 17,676 1.27 1.68 0.07 37
2010 -- 18.03 13.10 15,846 1.28 1.67 0.03 30
2009 -- 15.99 (18.25) 14,101 1.27 1.55 0.37 48
2008 -- 21.55 (11.43) 21,599 1.29 1.46 0.26 25
2007 -- 25.42 13.39 30,144 1.27 1.43 0.28 16
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
* FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED). ALL RATIOS
FOR THE PERIOD HAVE BEEN ANNUALIZED.
** ANNUALIZED.
*** TOTAL RETURN DOES NOT REFLECT ANY APPLICABLE SALES CHARGE. TOTAL RETURN IS
FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
~ RATIOS OF EXPENSES TO AVERAGE NET ASSETS INCLUDE INTEREST EXPENSES OF LESS
THAN 0.005% FOR THE PERIOD ENDED JULY 31, 2009, WHICH IS NOT INCLUDED IN
THE CONTRACTUAL EXPENSES LIMITATION. THE INTEREST EXPENSE IS FROM
UTILIZING A LINE OF CREDIT.
+ PER SHARE AMOUNTS CALCULATED USING AVERAGE SHARES METHOD, UNLESS OTHERWISE
INDICATED.
++ DOES NOT REFLECT VENDOR REIMBURSEMENT OF 0.03%.
+++ AMOUNT REPRESENTS LESS THAN $0.001.
# DOES NOT REFLECT VENDOR REIMBURSEMENT OF 0.08%.
## DOES NOT REFLECT VENDOR REIMBURSEMENT OF 0.02%.
^ PER SHARE AMOUNTS CALCULATED USING SEC METHODS.
(1) FOR THE NINE MONTH PERIOD ENDED JULY 31, 2009. ON JUNE 8, 2009, HIGHMARK
FUNDS ACQUIRED THE ASSETS AND ASSUMED THE IDENTIFIED LIABILITIES OF NORTH
TRACK EQUITY INCOME FUND, NORTH TRACK GENEVA GROWTH FUND, NORTH TRACK NYSE
ARCA TECH 100 INDEX FUND AND NORTH TRACK WISCONSIN TAX-EXEMPT FUND (THE
"NORTH TRACK FUNDS"). THE FISCAL YEAR END OF THE NORTH TRACK FUNDS, THE
PREDECESSOR FUNDS TO HIGHMARK EQUITY INCOME FUND, HIGHMARK GENEVA GROWTH
FUND, HIGHMARK NYSE ARCA TECH 100 INDEX FUND AND HIGHMARK WISCONSIN
TAX-EXEMPT FUND, WAS OCTOBER 31. THE FISCAL YEAR END OF THE SUCCESSOR
HIGHMARK FUNDS IS JULY 31.
(2) FOR THE YEAR ENDED OCTOBER 31.
(3) COMMENCED OPERATIONS ON MARCH 1, 2007.
(4) COMMENCED OPERATIONS ON JANUARY 4, 2012.
(5) COMMENCED OPERATIONS ON NOVEMBER 15, 2006.
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 153
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED) AND THE YEARS OR
PERIODS ENDED JULY 31, (UNLESS OTHERWISE INDICATED)
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS
------------------------------- ---------------------
NET
ASSET NET REALIZED TOTAL
VALUE, NET AND UNREALIZED TOTAL NET FROM
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL DIVIDENDS AND
OF PERIOD INCOME (LOSS)+ INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
-----------------------------------------------------------------------------------------------------------------------
----------------------------------------
TACTICAL GROWTH & INCOME ALLOCATION FUND
----------------------------------------
FIDUCIARY SHARES
2012* $21.73 $0.215 $(0.240) $(0.025) $(0.175) $ -- $(0.175)
2011 19.15 0.303 2.580 2.883 (0.303) -- (0.303)
2010 17.24 0.279 1.928 2.207 (0.297) -- (0.297)
2009 21.44 0.314 (3.122) (2.808) (0.321) (1.071) (1.392)
2008 24.23 0.413 (2.065) (1.652) (0.501) (0.637) (1.138)
2007 (1) 23.75 0.035 1.130 1.165 (0.407) (0.278) (0.685)
CLASS A SHARES
2012* $21.65 $0.189 $(0.240) $(0.051) $(0.149) $ -- $(0.149)
2011 19.09 0.243 2.567 2.810 (0.250) -- (0.250)
2010 17.18 0.232 1.929 2.161 (0.251) -- (0.251)
2009 21.37 0.281 (3.123) (2.842) (0.277) (1.071) (1.348)
2008 24.15 0.372 (2.075) (1.703) (0.440) (0.637) (1.077)
2007 22.26 0.412 2.258 2.670 (0.502) (0.278) (0.780)
CLASS C SHARES
2012* $21.52 $0.116 $(0.226) $(0.110) $(0.080) $ -- $(0.080)
2011 18.98 0.095 2.552 2.647 (0.107) -- (0.107)
2010 17.09 0.101 1.910 2.011 (0.121) -- (0.121)
2009 21.26 0.162 (3.102) (2.940) (0.159) (1.071) (1.230)
2008 24.03 0.208 (2.062) (1.854) (0.279) (0.637) (0.916)
2007 22.18 0.226 2.261 2.487 (0.359) (0.278) (0.637)
---------
BOND FUND
---------
FIDUCIARY SHARES
2012* $11.46 $0.194 $ 0.203 $ 0.397 $(0.200) $(0.237) $(0.437)
2011 11.38 0.420 0.182 0.602 (0.427) (0.095) (0.522)
2010 10.77 0.467 0.618 1.085 (0.475) -- (0.475)
2009 10.45 0.472 0.324 0.796 (0.476) -- (0.476)
2008 10.40 0.512 0.048 0.560 (0.510) -- (0.510)
2007 10.35 0.505 0.046 0.551 (0.501) -- (0.501)
CLASS A SHARES
2012* $11.28 $0.176 $ 0.197 $ 0.373 $(0.186) $(0.237) $(0.423)
2011 11.21 0.385 0.179 0.564 (0.399) (0.095) (0.494)
2010 10.61 0.433 0.614 1.047 (0.447) -- (0.447)
2009 10.31 0.440 0.310 0.750 (0.450) -- (0.450)
2008 10.26 0.479 0.055 0.534 (0.484) -- (0.484)
2007 10.22 0.472 0.044 0.516 (0.476) -- (0.476)
CLASS B SHARES
2012* $11.23 $0.138 $ 0.194 $ 0.332 $(0.145) $(0.237) $(0.382)
2011 11.16 0.308 0.174 0.482 (0.317) (0.095) (0.412)
2010 10.56 0.357 0.615 0.972 (0.372) -- (0.372)
2009 10.26 0.369 0.311 0.680 (0.380) -- (0.380)
2008 10.22 0.406 0.046 0.452 (0.412) -- (0.412)
2007 10.18 0.400 0.046 0.446 (0.406) -- (0.406)
CLASS C SHARES
2012* $11.22 $0.151 $ 0.198 $ 0.349 $(0.162) $(0.237) $(0.399)
2011 11.15 0.334 0.183 0.517 (0.352) (0.095) (0.447)
2010 10.56 0.384 0.609 0.993 (0.403) -- (0.403)
2009 10.25 0.396 0.325 0.721 (0.411) -- (0.411)
2008 10.20 0.430 0.060 0.490 (0.440) -- (0.440)
2007 10.17 0.425 0.039 0.464 (0.434) -- (0.434)
------------------------------------------
CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND
------------------------------------------
FIDUCIARY SHARES
2012* $10.19 $0.134 $ 0.374 $ 0.508 $(0.138) $ -- $(0.138)
2011 10.23 0.282 (0.044) 0.238 (0.278) -- (0.278)
2010 10.03 0.327 0.216 0.543 (0.326) (0.017) (0.343)
2009 9.83 0.344 0.216 0.560 (0.342) (0.018) (0.360)
2008 9.72 0.348 0.129 0.477 (0.354) (0.013) (0.367)
2007 9.81 0.361 (0.047) 0.314 (0.368) (0.036) (0.404)
RATIO
OF EXPENSES
TO AVERAGE RATIO OF
NET NET NET ASSETS NET
ASSET ASSETS, RATIO EXCLUDING INVESTMENT
VALUE, END OF EXPENSES FEE WAIVERS INCOME (LOSS) PORTFOLIO
REDEMPTION END TOTAL OF PERIOD TO AVERAGE AND REDUCTION TO AVERAGE TURNOVER
FEES OF PERIOD RETURN**** (000) NET ASSETS# OF EXPENSES# NET ASSETS# RATE
--------------------------------------------------------------------------------------------------------------------------------
----------------------------------------
TACTICAL GROWTH & INCOME ALLOCATION FUND
----------------------------------------
FIDUCIARY SHARES
2012* $-- $21.53 (0.06)% $ 1,058 0.32% 0.86% 2.09% 37%
2011 -- 21.73 15.12 1,031 0.33 0.87 1.40 39
2010 -- 19.15 12.83 127 0.33 0.86 1.49 39
2009 -- 17.24 (12.10) 114 0.33 0.81 1.94 66
2008 -- 21.44 (7.15) 93 0.33 0.71 1.87 27
2007 (1) -- 24.23 4.98 1 0.31** 0.67** 0.21** 13
CLASS A SHARES
2012* $-- $21.45 (0.19)% $ 36,544 0.57% 1.11% 1.84% 37%
2011 -- 21.65 14.77 30,422 0.57 1.12 1.15 39
2010 -- 19.09 12.60 26,026 0.57 1.11 1.24 39
2009 -- 17.18 (12.29) 23,091 0.58 1.06 1.69 66
2008 -- 21.37 (7.42) 37,737 0.58 0.96 1.62 27
2007 -- 24.15 12.10 47,572 0.55 0.93 1.72 13
CLASS C SHARES
2012* $-- $21.33 (0.53)% $ 25,865 1.27% 1.61% 1.14% 37%
2011 -- 21.52 14.02 20,347 1.27 1.62 0.45 39
2010 -- 18.98 11.78 17,094 1.28 1.61 0.54 39
2009 -- 17.09 (12.92) 15,731 1.28 1.56 0.99 66
2008 -- 21.26 (8.02) 20,137 1.28 1.47 0.91 27
2007 -- 24.03 11.29 22,941 1.25 1.43 0.95 13
---------
BOND FUND
---------
FIDUCIARY SHARES
2012* $-- $11.42 3.55% $334,287 0.76% 1.01% 3.38% 20%
2011 -- 11.46 5.45 337,143 0.79 1.01 3.70 58
2010 -- 11.38 10.29 330,318 0.78 1.00 4.23 32
2009 -- 10.77 7.93 307,014 0.77 0.99 4.57 41
2008 -- 10.45 5.42 344,350 0.76 0.98 4.83 28
2007 -- 10.40 5.40 352,610 0.74 0.99 4.81 16
CLASS A SHARES
2012* $-- $11.23 3.49% $ 39,518 1.02% 1.26% 3.13% 20%
2011 -- 11.28 5.09 29,449 1.04 1.26 3.45 58
2010 -- 11.21 10.08 28,952 1.03 1.25 3.97 32
2009 -- 10.61 7.58 22,726 1.02 1.24 4.32 41
2008 -- 10.31 5.24 31,167 1.01 1.23 4.58 28
2007 -- 10.26 5.11 31,068 1.00 1.24 4.56 16
CLASS B SHARES
2012* $ $11.18 3.03% $ 202 1.70% 1.76% 2.45% 20%
2011 -- 11.23 4.44 326 1.72 1.76 2.77 58
2010 -- 11.16 9.36 1,345 1.71 1.75 3.29 32
2009 -- 10.56 6.87 2,789 1.70 1.74 3.64 41
2008 -- 10.26 4.43 4,273 1.69 1.73 3.89 28
2007 -- 10.22 4.43 5,577 1.68 1.74 3.87 16
CLASS C SHARES
2012* $-- $11.17 3.19% $ 11,163 1.45% 1.51% 2.70% 20%
2011 -- 11.22 4.77 7,774 1.47 1.51 3.02 58
2010 -- 11.15 9.58 4,164 1.46 1.50 3.54 32
2009 -- 10.56 7.29 1,309 1.45 1.49 3.89 41
2008 -- 10.25 4.82 194 1.45 1.49 4.14 28
2007 -- 10.20 4.61 102 1.43 1.49 4.13 16
------------------------------------------
CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND
------------------------------------------
FIDUCIARY SHARES
2012* $-- $10.56 5.02% $134,779 0.54% 1.02% 2.58% 17%
2011 -- 10.19 2.38 123,644 0.54 1.02 2.79 32
2010 -- 10.23 5.49 112,407 0.53 1.02 3.22 17
2009 -- 10.03 5.80 96,420 0.52 1.03 3.47 12
2008 -- 9.83 4.96 90,173 0.51 1.01 3.54 14
2007 -- 9.72 3.24 89,852 0.49 1.00 3.67 2
The accompanying notes are an integral part of the financial statements.
154 HIGHMARK(R) FUNDS
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS
--------------------------- --------------------
NET
ASSET NET REALIZED TOTAL
VALUE, NET AND UNREALIZED TOTAL NET FROM
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL DIVIDENDS AND
OF PERIOD INCOME+ INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
-------------------------------------------------------------------------------------------------------------------
------------------------------------------------------
CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND (CONTINUED)
------------------------------------------------------
CLASS A SHARES
2012* $10.14 $0.121 $0.374 $0.495 $(0.125) $ -- $(0.125)
2011 10.18 0.256 (0.044) 0.212 (0.252) -- (0.252)
2010 9.98 0.300 0.218 0.518 (0.301) (0.017) (0.318)
2009 9.78 0.318 0.217 0.535 (0.317) (0.018) (0.335)
2008 9.68 0.323 0.120 0.443 (0.330) (0.013) (0.343)
2007 9.77 0.334 (0.045) 0.289 (0.343) (0.036) (0.379)
CLASS B SHARES
2012* $10.14 $0.085 $0.387 $0.472 $(0.072) $ -- $(0.072)
2011 10.18 0.186 (0.050) 0.136 (0.176) -- (0.176)
2010 9.98 0.230 0.213 0.443 (0.226) (0.017) (0.243)
2009 9.77 0.249 0.225 0.474 (0.246) (0.018) (0.264)
2008 9.67 0.254 0.119 0.373 (0.260) (0.013) (0.273)
2007 9.76 0.266 (0.044) 0.222 (0.276) (0.036) (0.312)
CLASS C SHARES
2012* $10.10 $0.097 $0.376 $0.473 $(0.103) $ -- $(0.103)
2011 10.15 0.209 (0.051) 0.158 (0.208) -- (0.208)
2010 9.95 0.253 0.221 0.474 (0.257) (0.017) (0.274)
2009 9.76 0.272 0.211 0.483 (0.275) (0.018) (0.293)
2008 9.66 0.275 0.125 0.400 (0.287) (0.013) (0.300)
2007 9.75 0.289 (0.046) 0.243 (0.297) (0.036) (0.333)
----------------------------------------
NATIONAL INTERMEDIATE TAX-FREE BOND FUND
----------------------------------------
FIDUCIARY SHARES
2012* $11.43 $0.159 $0.341 $0.500 $(0.160) $ -- $(0.160)
2011 11.48 0.319 (0.046) 0.273 (0.321) (0.002) (0.323)
2010 11.20 0.339 0.279 0.618 (0.338) -- (0.338)
2009 10.95 0.371 0.259 0.630 (0.371) (0.009) (0.380)
2008 10.84 0.420 0.122 0.542 (0.426) (0.006) (0.432)
2007 10.92 0.433 (0.033) 0.400 (0.441) (0.039) (0.480)
CLASS A SHARES
2012* $11.42 $0.144 $0.351 $0.495 $(0.145) $ -- $(0.145)
2011 11.48 0.291 (0.057) 0.234 (0.292) (0.002) (0.294)
2010 11.20 0.311 0.278 0.589 (0.309) -- (0.309)
2009 10.95 0.343 0.260 0.603 (0.344) (0.009) (0.353)
2008 10.83 0.391 0.135 0.526 (0.400) (0.006) (0.406)
2007 10.92 0.405 (0.042) 0.363 (0.414) (0.039) (0.453)
CLASS C SHARES
2012* $11.43 $0.118 $0.352 $0.470 $(0.120) $ -- $(0.120)
2011 11.49 0.239 (0.056) 0.183 (0.241) (0.002) (0.243)
2010 (2) 11.40 0.170 0.203 0.373 (0.283) -- (0.283)
2008 (3) 11.05 0.058 0.070 0.128 (0.058) -- (0.058)
2007 11.12 0.360 (0.045) 0.315 (0.346) (0.039) (0.385)
2006 11.44 0.368 (0.230) 0.138 (0.368) (0.090) (0.458)
2005 11.54 0.381 (0.018) 0.363 (0.375) (0.088) (0.463)
2004 (4) 11.78 0.343 (0.315) 0.028 (0.267) (0.001) (0.268)
RATIO
OF EXPENSES
TO AVERAGE RATIO OF
NET NET NET ASSETS NET
ASSET ASSETS, RATIO EXCLUDING INVESTMENT
VALUE, END OF EXPENSES FEE WAIVERS INCOME PORTFOLIO
REDEMPTION END TOTAL OF PERIOD TO AVERAGE AND REDUCTION TO AVERAGE TURNOVER
FEES OF PERIOD RETURN**** (000) NET ASSETS# OF EXPENSES# NET ASSETS# RATE
-------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------
CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND (CONTINUED)
------------------------------------------------------
CLASS A SHARES
2012* $-- $10.51 4.92% $83,686 0.79% 1.27% 2.33% 17%
2011 -- 10.14 2.13 78,038 0.79 1.27 2.54 32
2010 -- 10.18 5.26 76,111 0.78 1.27 2.97 17
2009 -- 9.98 5.57 48,833 0.77 1.28 3.22 12
2008 -- 9.78 4.62 28,430 0.75 1.25 3.30 14
2007 -- 9.68 3.00 27,500 0.74 1.25 3.42 2
CLASS B SHARES
2012* $-- $10.54 4.68% $ -- 1.48% 1.76% 1.63% 17%
2011 -- 10.14 1.36 94 1.49 1.77 1.84 32
2010 -- 10.18 4.49 635 1.48 1.77 2.27 17
2009 -- 9.98 4.92 1,621 1.47 1.78 2.52 12
2008 -- 9.77 3.88 3,254 1.46 1.76 2.59 14
2007 -- 9.67 2.29 4,326 1.44 1.75 2.72 2
CLASS C SHARES
2012* $-- $10.47 4.71% $30,784 1.24% 1.52% 1.88% 17%
2011 -- 10.10 1.59 22,806 1.24 1.52 2.09 32
2010 -- 10.15 4.82 14,860 1.23 1.52 2.52 17
2009 -- 9.95 5.03 4,938 1.22 1.53 2.77 12
2008 -- 9.76 4.18 1,287 1.22 1.52 2.83 14
2007 -- 9.66 2.52 259 1.19 1.50 2.96 2
----------------------------------------
NATIONAL INTERMEDIATE TAX-FREE BOND FUND
----------------------------------------
FIDUCIARY SHARES
2012* $-- $11.77 4.41% $77,530 0.52% 1.08% 2.73% 9%
2011 -- 11.43 2.43 79,902 0.52 1.08 2.81 22
2010 -- 11.48 5.60 81,121 0.51 1.07 2.99 14
2009 -- 11.20 5.85 75,000 0.44 1.08 3.35 35
2008 -- 10.95 5.06 62,883 0.29 1.05 3.82 19
2007 -- 10.84 3.72 67,896 0.28 1.01 3.95 4
CLASS A SHARES
2012* $-- $11.77 4.37% $23,198 0.77% 1.33% 2.48% 9%
2011 -- 11.42 2.08 23,674 0.77 1.33 2.56 22
2010 -- 11.48 5.33 22,335 0.76 1.32 2.74 14
2009 -- 11.20 5.60 19,285 0.69 1.33 3.10 35
2008 -- 10.95 4.91 7,108 0.54 1.30 3.57 19
2007 -- 10.83 3.37 3,159 0.53 1.25 3.70 4
CLASS C SHARES
2012* $-- $11.78 4.13% $ 6,708 1.22% 1.58% 2.03% 9%
2011 -- 11.43 1.71 4,161 1.22 1.58 2.11 22
2010 (2) -- 11.49 2.25 2,363 1.21** 1.57** 2.29** 14
2008 (3) -- 11.12 1.16 -- 0.97** 1.43** 3.01** 19***
2007 -- 11.05 2.86 6 0.97 1.55 3.22 4
2006 -- 11.12 1.24 25 1.00 1.51 3.27 7
2005 -- 11.44 3.15 50 1.03 1.59 3.30 14
2004 (4) -- 11.54 0.23 -- 0.67** 0.67** 4.30** 2
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. FOR NET
ASSETS AT END OF PERIOD, "--" IS AN AMOUNT LESS THAN $1,000.
* FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED). ALL RATIOS
FOR THE PERIOD HAVE BEEN ANNUALIZED.
** ANNUALIZED.
*** PORTFOLIO TURNOVER RATE BASED ON ONE YEAR DATA.
**** TOTAL RETURN DOES NOT REFLECT ANY APPLICABLE SALES CHARGE. TOTAL RETURN IS
FOR THE PERIOD INDICATED AND HAS BEEN ANNUALIZED.
+ PER SHARE AMOUNTS CALCULATED USING AVERAGE SHARES METHOD.
# RATIOS DO NOT INCLUDE INCOME AND EXPENSES OF THE UNDERLYING FUNDS IN WHICH
THE FUND INVESTS FOR THE CAPITAL GROWTH ALLOCATION FUND, DIVERSIFIED
EQUITY ALLOCATION FUND, GROWTH & INCOME ALLOCATION FUND AND INCOME PLUS
ALLOCATION FUND.
(1) COMMENCED OPERATIONS ON NOVEMBER 15, 2006.
(2) CLASS C SHARES RESUMED OPERATIONS ON DECEMBER 4, 2009, WITH A BEGINNING
NET ASSET VALUE PER SHARE OF $11.40.
(3) THE INFORMATION PRESENTED IS FOR THE PERIOD FROM AUGUST 1, 2007 THROUGH
SEPTEMBER 27, 2007. CLASS C SHARES CLOSED ON SEPTEMBER 27, 2007. THE
ENDING NET ASSET VALUE REFLECTS THE PRICE WHICH FINAL REDEMPTIONS WERE
PAID.
(4) COMMENCED OPERATIONS ON NOVEMBER 28, 2003.
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 155
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED) AND THE YEARS OR
PERIODS ENDED JULY 31, (UNLESS OTHERWISE INDICATED)
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS
--------------------------- --------------------
NET
ASSET NET REALIZED TOTAL
VALUE, NET AND UNREALIZED TOTAL NET FROM
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL DIVIDENDS AND
OF PERIOD INCOME+ INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
-------------------------------------------------------------------------------------------------------------------
--------------------
SHORT TERM BOND FUND
--------------------
FIDUCIARY SHARES
2012* $10.10 $0.105 $(0.008) $0.097 $(0.117) $ -- $(0.117)
2011 10.12 0.219 0.006 0.225 (0.245) -- (0.245)
2010 10.00 0.269 0.140 0.409 (0.289) -- (0.289)
2009 9.89 0.392 0.111 0.503 (0.393) -- (0.393)
2008 9.82 0.430 0.074 0.504 (0.434) -- (0.434)
2007 9.76 0.406 0.055 0.461 (0.401) -- (0.401)
CLASS A SHARES
2012* $10.09 $0.091 $(0.008) $0.083 $(0.103) $ -- $(0.103)
2011 10.10 0.191 0.016 0.207 (0.217) -- (0.217)
2010 9.98 0.240 0.141 0.381 (0.261) -- (0.261)
2009 9.88 0.364 0.104 0.468 (0.368) -- (0.368)
2008 9.81 0.401 0.076 0.477 (0.407) -- (0.407)
2007 9.76 0.365 0.061 0.426 (0.376) -- (0.376)
CLASS C SHARES
2012* $10.21 $0.069 $(0.010) $0.059 $(0.079) $ -- $(0.079)
2011 10.22 0.147 0.014 0.161 (0.171) -- (0.171)
2010 10.10 0.197 0.140 0.337 (0.217) -- (0.217)
2009 9.99 0.323 0.112 0.435 (0.325) -- (0.325)
2008 9.91 0.362 0.073 0.435 (0.355) -- (0.355)
2007 9.84 0.334 0.066 0.400 (0.330) -- (0.330)
-------------------------
WISCONSIN TAX-EXEMPT FUND
-------------------------
FIDUCIARY SHARES
2012* $10.37 $0.182 $ 0.486 $0.668 $(0.188) $ -- $(0.188)
2011 (1) 10.52 0.384 (0.127) 0.257 (0.395) (0.012) (0.407)
CLASS A SHARES
2012* $10.37 $0.174 $0.481 $0.655 $(0.175) $ -- $(0.175)
2011 10.52 0.365 (0.134) 0.231 (0.369) (0.012) (0.381)
2010 10.10 0.359 0.422 0.781 (0.361) -- (0.361)
2009 (2) 9.61 0.267 0.481 0.748 (0.258) -- (0.258)
2008 (3) 10.35 (0.37)^ (0.74) (0.37) (0.37) -- (0.37)
2007 (3) 10.49 (0.37)^ (0.14) 0.23 (0.37) -- (0.37)
2006 (3) 10.36 (0.37)^ 0.13 0.50 (0.37) -- (0.37)
CLASS B SHARES
2012* $10.36 $0.137 $ 0.479 $0.616 $(0.136) $ -- $(0.136)
2011 10.51 0.293 (0.135) 0.158 (0.296) (0.012) (0.308)
2010 10.09 0.285 0.423 0.708 (0.288) -- (0.288)
2009 (2) 9.60 0.212 0.482 0.694 (0.204) -- (0.204)
2008 (3) 10.34 (0.29)^ (0.74) (0.45) (0.29) -- (0.29)
2007 (3) 10.48 (0.29)^ (0.14) 0.15 (0.29) -- (0.29)
2006 (3) 10.35 (0.29)^ 0.13 0.42 (0.29) -- (0.29)
CLASS C SHARES
2012* $10.36 $0.150 $ 0.471 $0.621 $(0.151) $ -- $(0.151)
2011 10.51 0.318 (0.133) 0.185 (0.323) (0.012) (0.335)
2010 10.09 0.311 0.424 0.735 (0.315) -- (0.315)
2009 (2) 9.60 0.216 0.481 0.697 (0.207) -- (0.207)
2008 (3) 10.34 (0.29)^ (0.74) (0.45) (0.29) -- (0.29)
2007 (3) 10.48 (0.30)^ (0.15) 0.15 (0.29) -- (0.29)
2006 (3) 10.35 (0.29)^ 0.13 0.42 (0.29) -- (0.29)
RATIO
OF EXPENSES
TO AVERAGE RATIO OF
NET NET NET ASSETS NET
ASSET ASSETS, RATIO EXCLUDING INVESTMENT
VALUE, END OF EXPENSES FEE WAIVERS INCOME PORTFOLIO
REDEMPTION END TOTAL OF PERIOD TO AVERAGE AND REDUCTION TO AVERAGE TURNOVER
FEES OF PERIOD RETURN*** (000) NET ASSETS OF EXPENSES NET ASSETS RATE
-------------------------------------------------------------------------------------------------------------------------------
--------------------
SHORT TERM BOND FUND
--------------------
FIDUCIARY SHARES
2012* $-- $10.08 0.97% $ 94,391 0.64% 0.98% 2.07% 26%
2011 -- 10.10 2.35 87,476 0.67 0.98 2.17 48
2010 -- 10.12 4.04 71,122 0.66 0.99 2.67 27
2009 -- 10.00 5.24 51,471 0.66 1.07 3.99 54
2008 -- 9.89 5.21 52,958 0.65 0.97 4.33 43
2007 -- 9.82 4.81 54,638 0.65 0.92 4.13 33
CLASS A SHARES
2012* $-- $10.07 0.83% $ 23,374 0.92% 1.23% 1.80% 26%
2011 -- 10.09 2.07 24,353 0.95 1.23 1.89 48
2010 -- 10.10 3.86 22,581 0.94 1.24 2.39 27
2009 -- 9.98 4.88 9,403 0.93 1.32 3.72 54
2008 -- 9.88 4.93 271 0.93 1.23 4.05 43
2007 -- 9.81 4.43 153 0.91 1.16 3.72 33
CLASS C SHARES
2012* $-- $10.19 0.59% $ 21,154 1.37% 1.48% 1.35% 26%
2011 -- 10.21 1.59 20,876 1.40 1.48 1.44 48
2010 -- 10.22 3.37 17,565 1.39 1.49 1.94 27
2009 -- 10.10 4.47 3,109 1.38 1.57 3.27 54
2008 -- 9.99 4.44 362 1.37 1.47 3.61 43
2007 -- 9.91 4.12 1,608 1.36 1.42 3.37 33
-------------------------
WISCONSIN TAX-EXEMPT FUND
-------------------------
FIDUCIARY SHARES
2012* $-- $10.85 6.50% $ 439 0.65% 1.06% 3.53% 6%
2011 (1) -- 10.37 2.45 282 0.65** 1.06** 3.78* 10
CLASS A SHARES
2012* $-- $10.85 6.37% $140,020 0.90% 1.31% 3.28% 6%
2011 -- 10.37 2.28 130,165 0.90 1.31 3.53 10
2010 -- 10.52 7.95 146,665 0.90 1.29 3.45 13
2009 (2) -- 10.10 7.76 140,399 1.03** 1.28** 3.61** 9
2008 (3) -- 9.61 (3.72) 143,533 0.95 1.06 3.59 9
2007 (3) -- 10.35 2.24 157,899 0.99 1.04 3.56 9
2006 (3) -- 10.49 4.89 154,008 1.08 1.08 3.54 6
CLASS B SHARES
2012* $-- $10.84 5.99% $ 1,353 1.60% 1.81% 2.58% 6%
2011 -- 10.36 1.66 2,100 1.60 1.81 2.83 10
2010 -- 10.51 7.10 2,898 1.60 1.79 2.75 13
2009 (2) -- 10.09 7.18 3,142 1.77** 1.98** 2.87** 9
2008 (3) -- 9.60 (4.43) 3,319 1.70 1.81 2.84 9
2007 (3) -- 10.34 1.51 3,562 1.74 1.79 2.81 9
2006 (3) -- 10.48 4.14 3,630 1.83 1.83 2.79 6
CLASS C SHARES
2012* $-- $10.83 6.04% $ 13,591 1.35% 1.56% 2.83% 6%
2011 -- 10.36 1.93 10,831 1.35 1.56 3.08 10
2010 -- 10.51 7.37 10,157 1.35 1.54 3.00 13
2009 (2) -- 10.09 7.22 6,406 1.72** 1.93** 2.92** 9
2008 (3) -- 9.60 (4.33) 6,009 1.70 1.81 2.84 9
2007 (3) -- 10.34 1.51 6,640 1.74 1.79 2.81 9
2006 (3) -- 10.48 4.14 4,631 1.83 1.83 2.79 6
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
* FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED). ALL RATIOS
FOR THE PERIOD HAVE BEEN ANNUALIZED.
** ANNUALIZED.
*** TOTAL RETURN DOES NOT REFLECT ANY APPLICABLE SALES CHARGE. TOTAL RETURN IS
FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
+ PER SHARE AMOUNTS CALCULATED USING AVERAGE SHARES METHOD, UNLESS OTHERWISE
INDICATED.
^ PER SHARE AMOUNTS CALCULATED USING SEC METHOD.
(1) COMMENCED OPERATIONS ON AUGUST 3, 2010.
(2) FOR THE NINE MONTH PERIOD ENDED JULY 31, 2009. ON JUNE 8, 2009, HIGHMARK
FUNDS ACQUIRED THE ASSETS AND ASSUMED THE IDENTIFIED LIABILITIES OF NORTH
TRACK EQUITY INCOME FUND, NORTH TRACK GENEVA GROWTH FUND, NORTH TRACK NYSE
ARCA TECH 100 INDEX FUND AND NORTH TRACK WISCONSIN TAX-EXEMPT FUND (THE
"NORTH TRACK FUNDS"). THE FISCAL YEAR END OF THE NORTH TRACK FUNDS, THE
PREDECESSOR FUNDS TO HIGHMARK EQUITY INCOME FUND, HIGHMARK GENEVA GROWTH
FUND, HIGHMARK NYSE ARCA TECH 100 INDEX FUND AND HIGHMARK WISCONSIN
TAX-EXEMPT FUND, WAS OCTOBER 31. THE FISCAL YEAR END OF THE SUCCESSOR
HIGHMARK FUNDS IS JULY 31.
(3) FOR THE YEAR ENDED OCTOBER 31.
The accompanying notes are an integral part of the financial statements.
156 HIGHMARK(R) FUNDS
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2012 (UNAUDITED)
1. ORGANIZATION
HighMark(R) Funds ("HighMark" or the "Trust") was organized as a Massachusetts
business trust under a Declaration of Trust dated March 10, 1987.
HighMark is registered under the Investment Company Act of 1940, as amended (the
"1940 Act"), as an open-end investment company with twenty-seven separate funds.
All the series of Highmark Funds included in the Trust, except for Wisconsin
Tax-Exempt Fund, are diversified investment companies. The following funds of
the Trust are included in these financial statements: Balanced Fund, Cognitive
Value Fund, Enhanced Growth Fund, Equity Income Fund, Geneva Mid Cap Growth
Fund, Geneva Small Cap Growth Fund, International Opportunities Fund, Large Cap
Core Equity Fund (formerly Core Equity Fund), Large Cap Growth Fund, Large Cap
Value Fund, NYSE Arca Tech 100 Index Fund, Small Cap Core Fund (formerly Small
Cap Advantage Fund), Value Momentum Fund (collectively, the "Equity Funds"),
Bond Fund, California Intermediate Tax-Free Bond Fund, National Intermediate
Tax-Free Bond Fund, Short Term Bond Fund and Wisconsin Tax-Exempt Fund
(collectively, the "Fixed-Income Funds"), Tactical Capital Growth Allocation
Fund (formerly Capital Growth Allocation Fund) and Tactical Growth & Income
Allocation Fund (formerly Growth & Income Allocation Fund) (collectively, the
"Asset Allocation Funds"). The Equity Funds, the Fixed-Income Funds, and the
Asset Allocation Funds are collectively the "Funds" and each is a "Fund."
Pursuant to HighMark's multiple class plan, the Funds offer up to six classes of
shares, Class A Shares, Class B Shares and Class C Shares (collectively, the
"Retail Shares"), Fiduciary Shares, Class U Shares and Class M Shares. The
Funds' prospectuses provide a description of each Fund's investment objectives,
policies and strategies.
Class B Shares of the Funds are closed to purchases by new and existing
investors. Existing investors, however, may still exchange shares and reinvest
distributions in Class B Shares of the Funds.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Funds.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS -- The preparation
of financial statements in accordance with accounting principles generally
accepted in the United States of America require management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates and assumptions.
SECURITY VALUATION -- Securities listed on a securities exchange, market or
automated quotation system for which quotations are readily available (except
for securities traded on NASDAQ) are valued at the last quoted sale price on the
primary exchange or market (foreign or domestic) on which they are traded, or,
if there is no such reported sale, at the most recent quoted bid price. For
securities traded on NASDAQ, the NASDAQ Official Closing Price is used. Where
available, debt securities are priced based upon valuations provided by
independent, third-party pricing agents. These third-party pricing agents may
employ methodologies that utilize actual market transactions, broker-dealer
supplied valuations, or other electronic data processing techniques. Such
techniques generally consider such factors as security prices, yields,
maturities, call features, ratings and developments relating to specific
securities in arriving at valuations. Debt obligations with remaining maturities
of sixty days or less may be valued at their amortized cost, which approximates
market value. Prices for most securities held in the Funds are obtained daily
from recognized independent pricing agents. If a security price cannot be
obtained from an independent, third-party pricing agent, the Funds seek to
obtain a bid price from at least one independent broker.
Options for which the primary market is a national securities exchange are
valued at the last sale price on the exchange on which they are traded, or, in
the absence of any sale, at the closing bid price for long option positions and
the closing ask price for short option positions. Options not traded on a
national securities exchange are valued at the last quoted bid price for long
option positions and the closing ask price for short option positions.
Investments in registered investment companies are priced at the fund's daily
net asset value. The assets of each of the Asset Allocation Funds consist
primarily of the investments in underlying affiliated registered investment
companies, which are valued at their respective daily net asset values in
accordance with the above, board-approved, pricing procedures.
Securities for which market prices are not readily available are valued in
accordance with the Funds' Fair Value Procedures established by HighMark's Board
of Trustees (the "Board"). The Funds' Fair Value Procedures are implemented
through a Fair Value Committee (the "Committee") designated by the Board. Some
of the more common reasons that may necessitate that a security be valued using
Fair Value Procedures include: the security's trading has been halted or
suspended; the security has been de-listed from a national exchange; the
security's primary trading market is temporarily closed at a time when under
normal conditions it would be open; the security has not been traded for a
significant amount of time; or the security's primary pricing source is not able
or willing to provide a price. When a security is valued in accordance with the
Fair Value Procedures, the Committee will determine the value after taking into
consideration relevant information reasonably available to the Committee.
HIGHMARK(R) FUNDS 157
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JANUARY 31, 2012 (UNAUDITED)
For securities held by the Funds that principally trade on a foreign market or
exchange, a significant gap in time can exist between the time of a particular
security's last trade and the time at which the Fund calculates its net asset
value. The closing prices of securities may no longer reflect their market value
at the time the Fund calculates its net asset value if an event that could
materially affect the value of those securities (a "Significant Event") has
occurred between the time of the security's last close and the time that the
Fund calculates its net asset value. A Significant Event may relate to a single
issuer or to an entire market sector. If HighMark Capital Management, Inc. (the
"Adviser" or the "Administrator"), a wholly owned subsidiary of Union Bank, N.A.
(the "Bank") (a wholly owned subsidiary of UnionBanCal Corporation), or the
sub-adviser of a Fund becomes aware of a Significant Event that has occurred
with respect to a security or group of securities after the closing of the
exchange or market on which the security or securities principally trade, but
before the time at which the Fund calculates its net asset value, it shall
request that a Committee meeting be called.
The International Opportunities Fund also uses a third-party fair valuation
vendor. The vendor provides a fair value for foreign securities held by the Fund
based on certain factors and methodologies (involving, generally, tracking
valuation correlations between the U.S. market and each non-U.S. security).
Values from the fair value vendor are applied in the event that there is a
movement in the U.S. market that exceeds a specific threshold that has been
established by the Committee. The Committee has also established a "confidence
interval", which is used to determine the level of historical correlation
between the value of a specific foreign security and movements in the U.S.
market. In the event that the threshold established by the Committee is exceeded
on a specific day, the Fund will value the non-U.S. securities in its portfolio
that exceed the applicable "confidence interval" based upon the adjusted prices
provided by the fair valuation vendor.
FAIR VALUE MEASUREMENTS - The inputs and valuations techniques used to measure
fair value of the Funds' net assets are summarized into three levels as
described in the hierarchy below:
o Level 1 - unadjusted quoted prices in active markets for
identical assets or liabilities
o Level 2 - other significant observable inputs (including
quoted prices for similar securities, interest rates,
prepayment speeds, credit risk, etc.)
o Level 3 - significant unobservable inputs (including the
Fund's own assumptions in determining the fair value of
investments)
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
At the end of each calendar quarter, management evaluates the classification of
Levels 1, 2 and 3 assets and liabilities. Various factors are considered, such
as changes in liquidity from the prior reporting period; whether or not a broker
is willing to execute at the quoted price; the depth and consistency of prices
from third party pricing services; and the existence of contemporaneous,
observable trades in the market. Additionally, management evaluates the
classification of Level 1 and Level 2 assets and liabilities on a quarterly
basis for changes in listings or delistings on national exchanges. Transfers in
and out of Level 1, 2 and 3 are based on values at the end of period.
Due to the inherent uncertainty of determining the fair value of investments
that do not have a readily available market value, the fair value of the Funds'
investments may fluctuate from period to period. Additionally, the fair value of
investments may differ significantly from the values that would have been used
had a ready market existed for such investments and may differ materially from
the values the Funds may ultimately realize. Further, such investments may be
subject to legal and other restrictions on resale or otherwise less liquid than
publicly traded securities.
For the six months ended January 31, 2012, there were no transfers between
Levels 1, 2 and 3 for the Funds.
A summary of the levels for each of the Fund's investments as of January 31,
2012 is included with each Fund's schedule of investments.
FOREIGN CURRENCY TRANSLATION -- The books and records of the Funds are
maintained in U.S. dollars on the following basis:
(I) market value of investment securities, assets and liabilities are
translated to U.S. dollars at the current rate of exchange; and
(II) purchases and sales of investment securities, income and expenses
are translated to U.S. dollars at the relevant rates of exchange
prevailing on the respective dates of such transactions.
The Funds do not isolate the portion of gains and losses on investments in
securities that is due to changes in the foreign exchange rates from that which
is due to changes in market prices of securities. The Funds report certain
foreign currency related transactions as components of realized gains for
financial reporting purposes, whereas such components are treated as ordinary
income for federal income tax purposes.
FORWARD FOREIGN CURRENCY CONTRACTS -- The International Opportunities Fund may
enter into spot and forward foreign currency contracts as hedges against either
specific transactions, Fund positions or anticipated Fund positions. All
commitments are "marked-to-market" daily using the applicable spot or forward
foreign exchange rate, and any resulting unrealized gains or losses are
recorded. The International Opportunities Fund realizes gains and losses at the
time the
158 HIGHMARK(R) FUNDS
spot or forward contracts are extinguished. Unrealized gains or losses on
outstanding positions in spot and forward foreign currency contracts held at the
close of the period are recognized as ordinary income or loss for federal income
tax purposes. The International Opportunities Fund could be exposed to risk if
the counterparties to the contracts are unable to meet the terms of the contract
and from unanticipated movements in the value of a foreign currency relative to
the U.S. dollar. Also, the risk exists that losses could exceed amounts
disclosed on the statement of assets and liabilities. The Funds did not engage
in forward contracts during the six months ended January 31, 2012. The only Fund
to have engaged in foreign currency contracts was the International
Opportunities Fund. During the six months ended January 31, 2012, the average
number of foreign currency contracts outstanding held by the International
Opportunities Fund, based on a quarterly average was 1. The unrealized
appreciation and depreciation on foreign currency contracts at January 31, 2012,
and the net realized gain (loss) and change in unrealized appreciation
(depreciation) on foreign currency contracts for the year ended January 31,
2012, are presented in separate lines on the statement of assets and liabilities
and statement of operations, respectively.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the date the security is purchased or sold (trade date). Costs
used in determining realized gains and losses on the sale of investment
securities are those of the specific securities sold, adjusted for the accretion
and amortization of purchase discounts and premiums, if any, during the
respective holding periods. Interest income is recorded on the accrual basis;
dividend income is recorded on the ex-dividend date, or in the case of certain
foreign investments, as soon as the Fund is made aware of it.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions of repurchase agreements and procedures adopted by the
Adviser are designed to ensure that the market value of the collateral is
sufficient in the event of default by the counterparty. If the counterparty
defaults and the value of the collateral declines or if the coun-terparty enters
an insolvency proceeding, realization of the collateral by a Fund may be delayed
or limited. Repurchase agreements held by the Funds are generally backed by U.S.
Treasury and U.S. Government agency obligations except when the Funds enter into
repurchase agreements in connection with the reinvestment of security lending
collateral, in which case, corporate obligations may also be used as collateral
for repurchase agreement investments.
OPTIONS TRANSACTIONS -- In the normal course of pursuing their investment
objectives, certain Funds are subject to price volatility risk. In order to
produce incremental earnings and protect gains or minimize losses, certain
Funds, as described in their prospectuses, may participate in options
transactions including writing covered call options. A risk in writing a covered
call option is that a Fund gives up the opportunity of profit if the market
price of the underlying security increases. Also, certain Funds may purchase
call or put options with respect to securities that are permitted investments,
as described in the Funds' prospectuses. The risk in purchasing options is
limited to the premium paid. Counterparty risk is the risk to the option buyer
that the writer will not buy or sell the underlying securities as agreed.
A Fund realizes a gain or loss upon the expiration of a written call or
purchased call or put option, respectively. When a written call option is closed
prior to expiration by being exercised, the proceeds on the sale are increased
by the amount of original premium received.
When a purchased call or put option is closed prior to expiration by being
exercised, the cost of investments purchased or sold, respectively, is increased
by the amount of original premium paid.
A Fund records unrealized depreciation when the underlying security's market
price rises (in case of a written call) and unrealized appreciation/depreciation
when the underlying security's market price changes (in case of a purchased call
or put) to the extent sufficient to cover the option premium and transaction
costs.
There were no written options for the six months ended January 31, 2012.
FUTURES CONTRACTS - The Equity Income Fund, the Large Cap Core Equity Fund, the
NYSE Arca Tech 100 Index Fund, the Small Cap Core Fund, the Tactical Capital
Growth Allocation Fund and the Tactical Growth & Income Allocation Fund utilized
futures contracts during the six months ended January 31, 2012. The Funds'
investments in futures contracts are designed to enable the Funds to more
closely approximate the performance of their benchmark indices or are designed
for tactical hedging purposes. Initial margin deposits of cash or securities are
made upon entering into futures contracts. The contracts are marked to market
daily at the settlement price established each day by the board of exchange on
which they are traded, and the resulting changes in value are accounted for as
unrealized gains and losses. Variation margin payments are paid or received,
depending upon whether unrealized losses or gains are incurred. When the
contract is closed, the Funds record a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing transaction and
the amount invested in the contract.
Risks of entering into futures contracts include the possibility that there will
be a decrease in the price of the underlying securities or index. Second, it is
possible that a lack of liquidity for futures contracts could exist in the
secondary market, resulting in an inability to close a position prior to its
maturity date. Third, the futures contract involves the risk that the Fund could
lose more than the original margin deposit required to initiate a futures
transaction. Additionally, the risk exists that losses could exceed amounts
disclosed on the statement of assets and liabilities.
HIGHMARK(R) FUNDS 159
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JANUARY 31, 2012 (UNAUDITED)
As of January 31, 2012, the Large Cap Core Equity Fund, the Small Cap Core Fund,
the Tactical Capital Growth Allocation Fund and the Tactical Growth & Income
Allocation Fund were the only Funds to have open futures contracts. During the
six months ended January 31, 2012, the average number of futures contracts
outstanding, based on a quarterly average, was 1, 12, 28, 13, 2 and 3 on the
Equity Income Fund, the Large Cap Core Equity Fund, the NYSE Arca Tech 100 Index
Fund, the Small Cap Core Fund, the Tactical Capital Growth Allocation Fund and
the Tactical Growth & Income Allocation Fund, respectively. The unrealized
appreciation and depreciation on futures contracts at January 31, 2012, and the
net realized gain (loss) and change in unrealized appreciation (depreciation) on
futures contracts for the six months ended January 31, 2012, are presented in
separate lines on the statement of assets and liabilities and statement of
operations, respectively.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS -- Delivery and payment for
securities that have been purchased by a Fund on a when-issued or forward
commitment basis can take place up to a month or more after the trade date.
During the period, such securities are subject to market fluctuations. The Funds
may maintain, in a segregated account with their custodian, assets with a market
value equal to or greater than the amount of its purchase commitments. These
securities are recorded as an asset and are subject to changes in value based
upon changes in the general level of interest rates or other market environment
factors. Therefore, the purchase of securities on a "when-issued" basis may
increase the risk of fluctuations in a Fund's net asset value.
DISCOUNTS AND PREMIUMS -- Discounts and premiums are accreted or amortized over
the life of each security and are recorded as interest income for each of the
Funds using a method that approximates the effective interest method.
CLASSES -- Class specific expenses are borne by that class. Income, non-class
specific expenses and realized/unrealized gains and losses are allocated to the
respective classes on the basis of the relative daily net assets.
ASSET ALLOCATION FUNDS -- In addition to the direct expenses borne by the
shareholders of the Asset Allocation Funds, the shareholders also bear
indirectly a proportionate share of the expenses of the investment companies in
which the Funds invest ("underlying funds"). Capital gain distributions from the
underlying funds are booked as realized gains.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Each of the Equity Funds may
declare and pay dividends from net investment income periodically, each of the
Fixed-Income Funds may declare and pay dividends from net investment income
monthly and the Asset Allocation Funds may declare and pay dividends from net
investment income quarterly. None of the Funds has a targeted dividend rate, and
none of the Funds guarantees that it will pay any dividends or other
distributions. Any net realized capital gains, if any, will be distributed at
least annually by all Funds.
DEFERRED COMPENSATION PLAN -- Under the deferred compensation plan approved by
the Board, members of the Board (the "Trustees") who are not officers or
employees of the Bank or any subsidiary of the Bank are permitted to defer a
portion of their annual compensation. Deferred amounts earn an approximate
return as though equivalent dollar amounts had been invested in shares of Funds
selected by the Trustees, which has the same economic effect for the Trustees as
if the Trustees had invested the deferred amounts in such Funds.
The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of HighMark.
However, HighMark has elected to invest in shares of those Funds selected by the
Trustees in order to match the deferred compensation obligation. The deferred
compensation obligation is allocated to the Funds based on average net assets.
REDEMPTION AND EXCHANGE FEES -- The redemption fee and the exchange fee are
designed to discourage short-term trading. Proceeds of the fees are recorded as
an increase to paid-in capital of the applicable Fund.
CURRENT, EFFECTIVE OCTOBER 16, 2006
------------------------------------------------------------------
FIDUCIARY CLASS
-----------------------------------
Cognitive Value 2% redemption and 30 days or less
exchange fees after purchase
Geneva Small Cap Growth 2% redemption and 30 days or less
exchange fees after purchase
International Opportunities 2% redemption and 30 days or less
exchange fees after purchase
Small Cap Core 2% redemption and 30 days or less
exchange fees after purchase
CLASS A
-----------------------------------
Cognitive Value 2% redemption and 30 days or less
exchange fees after purchase
Geneva Small Cap Growth 2% redemption and 30 days or less
exchange fees after purchase
International Opportunities 2% redemption and 30 days or less
exchange fees after purchase
Small Cap Core 2% redemption and 30 days or less
exchange fees after purchase
CLASS M
-----------------------------------
Cognitive Value 2% redemption and 30 days or less
exchange fees after purchase
International Opportunities 2% redemption and 30 days or less
exchange fees after purchase
For the six months ended January 31, 2012, the Cognitive Value Fund, the Geneva
Small Cap Growth Fund, the International Opportunities Fund and the Small Cap
Core Fund received redemption fees of $610, $455, $488 and $112, respectively. A
Fund's redemption fees are allocated to all classes in that Fund based on
relative net assets.
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
HighMark and the Adviser are parties to an Investment Advisory agreement. For
its services, the Adviser is entitled to receive a fee with respect to each
Fund, which is calculated daily and paid monthly, based on the daily net assets
of each Fund, at an annual rate of:
160 HIGHMARK(R) FUNDS
Balanced ................................... 0.60%
Cognitive Value ............................ 0.75% on the first $500 million
0.70% on assets over $500 million
Enhanced Growth ............................ 0.75% on the first $500 million
0.70% on the next $500 million
0.65% on assets over $1 billion
Equity Income .............................. 0.55% on the first $100 million
0.50% on the next $400 million
0.45% on assets over $500 million
Geneva Mid Cap Growth ...................... 0.75% on the first $250 million
0.70% on the next $250 million
0.65% on assets over $500 million
Geneva Small Cap Growth .................... 1.00% on the first $250 million
0.95% on the next $250 million
0.90% on assets over $500 million
International Opportunities ................ 0.75% on the first $1 billion
0.70% on assets over $1 billion
Large Cap Core Equity ...................... 0.60%
Large Cap Growth ........................... 0.60%
Large Cap Value ............................ 0.60%
NYSE Arca Tech 100 Index ................... 0.50% on the first $50 million
0.30% on the next $200 million
0.25% on the next $250 million
0.20% on assets over $500 million
Small Cap Core ............................. 0.95%
Value Momentum ............................. 0.60%
Tactical Capital Growth Allocation ......... 0.175%
Tactical Growth & Income Allocation ........ 0.175%
Bond ....................................... 0.50%
California Intermediate Tax-Free Bond ...... 0.50%
National Intermediate Tax-Free Bond ........ 0.50%
Short Term Bond ............................ 0.40%
Wisconsin Tax-Exempt ....................... 0.50% on the first $250 million
0.40% on assets over $250 million
Effective December 1, 2011, the Adviser contractually agreed to reduce its fees
(excluding portfolio brokerage and transaction costs, taxes relating to
transacting in foreign securities, if any, extraordinary expenses and any
expenses indirectly incurred by a Fund through investments in pooled investment
vehicles (collectively, the "Excluded Costs")) through November 30, 2012 and to
the extent necessary to reimburse the Funds in order to limit the Funds from
exceeding certain expense limitations as follows:
FIDUCIARY CLASS A CLASS B CLASS C CLASS U CLASS M
SHARES SHARES SHARES SHARES SHARES SHARES
--------- ------- ------- ------- ------- -------
Balanced ..................... 0.99% 1.24% 1.84% 1.84% n/a n/a
Cognitive Value .............. 1.22 1.47 n/a 2.07 n/a 1.07%
Enhanced Growth .............. 1.20 1.45 n/a 2.05 n/a 1.05
Equity Income ................ 0.90 1.15 1.75 1.75 n/a n/a
Geneva Mid Cap Growth ........ 1.13 1.38 1.98 1.98 n/a n/a
Geneva Small Cap Growth ...... 1.37 1.62 n/a 2.22 n/a n/a
International Opportunities .. 1.27 1.42 n/a 2.12 n/a 1.12
Large Cap Core Equity ........ 0.97 1.22 1.82 1.82 n/a n/a
Large Cap Growth ............. 1.02 1.27 1.87 1.87 n/a n/a
Large Cap Value .............. 1.00 1.25 1.85 1.85 n/a n/a
NYSE Arca Tech 100 Index ..... 0.83 1.08 1.68 1.68 n/a n/a
Small Cap Core ............... 1.37 1.62 n/a 2.22 n/a n/a
Value Momentum ............... 1.02 1.27 1.87 1.87 0.87% n/a
Tactical Capital Growth
Allocation ................ 0.33 0.58 n/a 1.28 n/a n/a
Tactical Growth & Income
Allocation ................ 0.33 0.58 n/a 1.28 n/a n/a
Bond ......................... 0.72 0.97 1.65 1.40 n/a n/a
California Intermediate
Tax-Free Bond ............. 0.54 0.79 1.49 1.24 n/a n/a
FIDUCIARY CLASS A CLASS B CLASS C CLASS U CLASS M
SHARES SHARES SHARES SHARES SHARES SHARES
--------- ------- ------- ------- ------- -------
National Intermediate
Tax-Free Bond ............. 0.52% 0.77% n/a 1.22% n/a n/a
Short Term Bond .............. 0.60 0.85 n/a 1.30 n/a n/a
Wisconsin Tax-Exempt ......... 0.65 0.90 1.60% 1.35 n/a n/a
n/a -- not applicable
Effective August 1, 2011 through November 30, 2011, the Adviser contractually
agreed to reduce its fees (excluding Excluded Costs) and to the extent necessary
to reimburse the Funds in order to limit the Funds from exceeding certain
expense limitations as follows:
FIDUCIARY CLASS A CLASS B CLASS C CLASS U CLASS M
SHARES SHARES SHARES SHARES SHARES SHARES
--------- ------- ------- ------- ------- -------
Balanced ..................... 0.99% 1.24% 1.84% 1.84% n/a n/a
Cognitive Value .............. 1.22 1.47 n/a 2.07 n/a 1.07%
Enhanced Growth .............. 1.20 1.45 n/a 2.05 n/a 1.05
Equity Income ................ 0.90 1.15 1.75 1.75 n/a n/a
Geneva Mid Cap Growth ........ 1.13 1.38 1.98 1.98 n/a n/a
Geneva Small Cap Growth ...... 1.37 1.62 n/a 2.22 n/a n/a
International Opportunities .. 1.47 1.62 n/a 2.32 n/a 1.32
Large Cap Core Equity ........ 1.00 1.25 1.85 1.85 n/a n/a
Large Cap Growth ............. 1.02 1.27 1.87 1.87 n/a n/a
Large Cap Value .............. 1.00 1.25 1.85 1.85 n/a n/a
NYSE Arca Tech 100 Index ..... 0.83 1.08 1.68 1.68 n/a n/a
Small Cap Core ............... 1.37 1.62 n/a 2.22 n/a n/a
Value Momentum ............... 1.02 1.27 1.87 1.87 0.87% n/a
Tactical Capital Growth
Allocation ................ 0.33 0.58 n/a 1.28 n/a n/a
Tactical Growth & Income
Allocation ................ 0.33 0.58 n/a 1.28 n/a n/a
Bond ......................... 0.79 1.04 1.72 1.47 n/a n/a
California Intermediate
Tax-Free Bond ............. 0.54 0.79 1.49 1.24 n/a n/a
National Intermediate
Tax-Free Bond ............. 0.52 0.77 n/a 1.22 n/a n/a
Short Term Bond .............. 0.70 0.95 n/a 1.40 n/a n/a
Wisconsin Tax-Exempt ......... 0.65 0.90 1.60 1.35 n/a n/a
* Class U Shares were effective October 7, 2011.
Effective December 1, 2009, the Adviser may recoup from the Fund any of the fees
and expenses it has waived and/or reimbursed until the end of the third fiscal
year after the end of the fiscal year in which such waiver and/or reimbursement
occurs, subject to certain limitations. The Funds will make such payment only if
the annual operating expenses of each Fund share class (exclusive of the
Excluded Costs), at the time of such payment, are below the contractual fee
limit in effect at the time the waiver/expense reimbursement occurs. This
recoupment could reduce a Fund's future total return. For the six months ended
January 31, 2012, the Funds did not recoup any fees or expenses.
On January 31, 2012, the amounts subject to possible future recoupment under the
Funds' expense limitation agreement are as follows:
EXPIRING EXPIRING EXPIRING
2013 2014 2015
-------- -------- --------
Balanced ..................... $ 73,760 $115,433 $ 61,955
Cognitive Value .............. - 9,308 12,733
Enhanced Growth .............. 3,996 28,031 25,268
HIGHMARK(R) FUNDS 161
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JANUARY 31, 2012 (UNAUDITED)
EXPIRING EXPIRING EXPIRING
2013 2014 2015
-------- -------- --------
Equity Income ........................... $ 73,275 $126,695 $ 67,493
Geneva Mid Cap Growth ................... 122,334 210,531 65,284
Geneva Small Cap Growth ................. 47,565 89,482 51,360
Large Cap Core Equity ................... 48,012 79,695 51,536
Large Cap Growth ........................ 66,315 104,813 60,446
Large Cap Value ......................... 93,692 101,382 65,261
NYSE Arca Tech 100 Index ................ 68,245 185,874 114,154
Small Cap Core .......................... 48,889 78,535 30,587
Value Momentum .......................... 6,388 27,483 30,612
Tactical Capital Growth Allocation ...... 113,246 178,836 93,247
Tactical Growth & Income Allocation ..... 99,056 168,054 92,337
Bond .................................... 53,629 133,816 114,183
California Intermediate Tax-Free Bond ... 334,529 628,741 328,151
National Intermediate Tax-Free Bond ..... 239,461 391,114 193,511
Short Term Bond ......................... 57,114 105,854 75,872
Wisconsin Tax-Exempt .................... 200,279 322,056 160,006
A Fund's total actual annual operating expense ratio may be less than the amount
shown for such Fund above due to additional waivers/reimbursements described
below.
Effective June 1, 2011, the Adviser and Bailard, Inc. ("Bailard") are parties to
an investment sub-advisory agreement relating to the Cognitive Value Fund, the
Enhanced Growth Fund and the International Opportunities Fund. Bailard is
entitled to receive a fee at the annual rate of 0.375% of the daily net assets
on the first $500 million and 0.35% on the daily net assets over $500 million of
the Cognitive Value Fund. Bailard is entitled to receive a fee at the annual
rate of 0.375% of the daily net assets on the first $500 million, 0.35% on the
daily net assets on the next $500 million and 0.325% on the daily net assets
over $1 billion of the Enhanced Growth Fund. Effective December 1, 2011, Bailard
is entitled to receive a fee at the annual rate of 0.375% of the daily net
assets on the first $1 billion and 0.350% of the daily net assets over $1
billion of the International Opportunities Fund. Prior to December 1, 2011,
Bailard was entitled to receive a fee at the annual rate of 0.475% of the daily
net assets on the first $250 million, 0.45% on the daily net assets on the next
$250 million, 0.425% on the daily net assets on the next $500 million and 0.4%
on the daily net assets over $1 billion of the International Opportunities Fund.
Bailard's fee is paid from the Adviser's fee. Previously, Bailard had an
investment sub-advisory agreement, with the same pre-December 1, 2011
compensation structure disclosed above, with the Adviser from April 3, 2006 to
May 31, 2011.
Effective October 8, 2010, the Adviser and Ziegler Lotsoff Capital Management,
LLC ("Ziegler") entered into a new investment sub-advisory agreement relating to
the Equity Income Fund. Ziegler is entitled to be paid monthly a fee equal, with
respect to any particular month, to 50% of the total of (i) the adjusted gross
advisory fee payable to the Adviser by the Fund with respect to such month,
minus (ii) any adviser pay or supplemental payments paid to financial
intermediaries or other third parties for the offering or sale of shares in such
Fund or the ongoing maintenance of relationships with shareholders of such Fund
(including the performance of services with respect to such shareholders) by an
adviser or a distributor of HighMark or any of its affiliates (whether as
revenue sharing, or for shareholder services, recordkeeping services or other
services) with respect to such month. Ziegler's fee is paid from the Adviser's
fee. Previously, Ziegler had an interim investment sub-advisory agreement, with
the same compensation structure disclosed above, with the Adviser from May 21,
2010 to October 7, 2010 relating to the Equity Income Fund.
Effective October 18, 2010, the Adviser and Ziegler entered into a new
investment sub-advisory agreement relating to the NYSE Arca Tech 100 Index Fund.
Ziegler shall be paid monthly a fee equal, with respect to any particular month,
to 50% of the total of (i) the adjusted gross advisory fee payable to Adviser by
the Fund with respect to such month, minus (ii) any adviser pay or supplemental
payments paid to financial intermediaries or other third parties for the
offering or sale of shares in such Fund or the ongoing maintenance of
relationships with shareholders of such Fund (including the performance of
services with respect to such shareholders) by an adviser or a distributor of
HighMark or any of its affiliates (whether as revenue sharing, or for
shareholder services, recordkeeping services or other services) with respect to
such month, minus (iii) all amounts paid by the Fund and/or Adviser with respect
to such month pursuant to any license agreement relating to the Fund's use of
the NYSE Arca Tech 100 Index and/or any trademarks Archipelago Holdings, Inc.
("Licensing Agreement") or any successor thereto owns or to which it has rights.
Ziegler's fee is paid from the Adviser's fee. Previously, Ziegler had an interim
investment sub-advisory agreement, with the same compensation structure
disclosed above, with the Adviser from May 21, 2010 to October 17, 2010 relating
to the NYSE Arca Tech 100 Index Fund.
Effective October 8, 2010, the Adviser and Ziegler entered into a new investment
sub-advisory agreement relating to the Wisconsin Tax-Exempt Fund. Ziegler shall
be paid monthly a fee equal, with respect to any particular month, to 50% of the
total of (i) the adjusted gross advisory fee payable to Adviser by the Fund with
respect to such month, minus (ii) the lesser of (1) the contractually committed
expense reimbursement rate, if any, in effect on the date the Fund commences
operations and (2) the contractually committed expense reimbursement rate, if
any, then in effect, minus (iii) any adviser pay or supplemental payments paid
to financial intermediaries or other third parties for the offering or sale of
shares in such Fund or the ongoing maintenance of relationships with
shareholders of such Fund (including the performance of services with respect to
such shareholders) by an adviser or a distributor of HighMark or any of its
affiliates (whether as revenue sharing, or for shareholder services,
recordkeeping services or other services) with respect to such month. Ziegler's
fee is paid from the Adviser's fee. Previously, Ziegler had an interim
investment sub-advisory agreement, with the same compensation structure
disclosed above, with the Adviser from May 21, 2010 to October 7, 2010 relating
to the Wisconsin Tax-Exempt Fund.
162 HIGHMARK(R) FUNDS
The Adviser and Geneva Capital Management Ltd. ("Geneva") entered into two
investment sub-advisory agreements relating to the Geneva Mid Cap Growth Fund
and the Geneva Small Cap Growth Fund, respectively. Geneva shall be paid monthly
a fee equal, with respect to any particular month, to 50% of the total of (i)
the gross advisory fee payable to Adviser by the applicable Fund with respect to
such month, minus (ii) any adviser pay or supplemental payments paid to
financial intermediaries or other third parties under agreements executed after
the Geneva Mid Cap Growth Fund and the Geneva Small Cap Growth Fund commence
operations, for the offering or sale of shares in such Fund or the ongoing
maintenance of relationships with shareholders of such Fund (including the
performance of services with respect to such shareholders) by an adviser or a
distributor of HighMark or any of its affiliates (whether as revenue sharing, or
for shareholder services, recordkeeping services or other services) with respect
to such month up to an amount not to exceed 0.10% of the average daily net
assets of the Fund with respect to such month. Geneva's fee is paid from the
Adviser's fee.
The Administrator and HighMark are parties to an administrative services
agreement (the "Administrative Services Agreement") under which the
Administrator provides the Funds with administrative services for an annual fee
of 0.15% of the first $8 billion of the average daily net assets of the Funds
and 0.14% of such average daily net assets in excess of $8 billion allocated to
each Fund based on its respective net assets. The Administrator may voluntarily
waive its fee, subject to termination at any time by the Administrator.
Pursuant to a separate agreement with the Administrator, BNY Mellon Investment
Servicing (US) Inc. (the "Sub-Administrator") performs sub-administration
services on behalf of each Fund, for which it receives a fee paid by the
Administrator at the annual rate of 0.025% of the first $8 billion of the
aggregate average net assets of the Funds and 0.015% of such assets in excess of
$8 billion. For the six months ended January 31, 2012, the Sub-Administrator
earned sub-administration fees in the amount of $347,052.
Certain officers of HighMark and Trustees who are deemed to be "interested
persons" of HighMark as defined in the 1940 Act ("Interested Trustees") are also
officers of the Adviser, the Adviser's parent and the Sub-Administrator. Such
officers and Interested Trustees, except for the Funds' Chief Compliance
Officer, are paid no fees by the Funds for serving as officers of HighMark.
The Trustees who are not "interested persons" of HighMark ("Independent
Trustees") receive quarterly retainer fees and fees and expenses for each
meeting of the Board attended, which is paid by the Funds.
Boston Financial Data Services, Inc. serves as the transfer agent, dividend
disbursing agent and shareholder servicing agent for the Funds.
HighMark Funds Distributors, LLC (formerly known as HighMark Funds Distributors,
Inc.) (the "Distributor"), a wholly owned subsidiary of BNY Mellon Distributors
LLC (formerly known as BNY Mellon Distributors Inc.), and HighMark are parties
to an underwriting agreement dated July 1, 2010. HighMark has adopted 12b-1
Plans (the "Plans") with respect to Class A, Class B and Class C Shares that
allow each Fund to pay distribution and service fees to the Distributor as
compensation for its services under the Plans. The Distributor receives a
distribution fee computed daily and paid monthly, at the annual rate of 0.25% of
the daily net assets attributable to each Fund's Class A Shares, 0.75% of the
daily net assets attributable to each Fund's Class B Shares and 1.00% of the
daily net assets attributable to each Fund's Class C Shares (0.75% of the daily
net assets of the Bond Fund, the California Intermediate Tax-Free Bond Fund, the
National Intermediate Tax-Free Bond Fund, the Short Term Bond Fund and the
Wisconsin Tax-Exempt Fund), which may be used by the Distributor to provide
compensation for sales support and distribution activities.
HighMark has also adopted shareholder service plans/agreements permitting
payment of compensation to service providers, which may include the Bank or its
affiliates that have agreed to provide certain shareholder support services for
its customers who own Fiduciary, Class A or Class B Shares. In consideration for
such services, a service provider is entitled to receive compensation at the
annual rate of up to 0.25% of the average daily net assets of the applicable
class or classes of shares of the Funds. The service providers have agreed to
waive a portion of their fees for certain classes of all Funds for the six
months ended January 31, 2012. For the six months ended January 31, 2012, the
Bank, or its affiliates earned shareholder servicing fees, net of waivers, from
the Funds in the amount of approximately $1,193,261, which is included in the
shareholder servicing fees and the related waivers on the statement of
operations. The shareholder servicing fee waivers by the Bank, or its
affiliates, are voluntary and not subject to recoupment.
A sales charge is imposed on purchases of Class A Shares at the following rates:
CLASS A
SHARES*
-------
Balanced ............................................................ 5.50%
Cognitive Value ..................................................... 5.50
Enhanced Growth ..................................................... 5.50
Equity Income ....................................................... 5.50
Geneva Mid Cap Growth ............................................... 5.50
Geneva Small Cap Growth ............................................. 5.50
International Opportunities ......................................... 5.50
Large Cap Core Equity ............................................... 5.50
Large Cap Growth .................................................... 5.50
Large Cap Value ..................................................... 5.50
NYSE Arca Tech 100 Index ............................................ 5.50
Small Cap Core ...................................................... 5.50
Value Momentum ...................................................... 5.50
Tactical Capital Growth Allocation .................................. 5.50
Tactical Growth & Income Allocation ................................. 5.50
Bond ................................................................ 2.25
California Intermediate Tax-Free Bond ............................... 2.25
HIGHMARK(R) FUNDS 163
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JANUARY 31, 2012 (UNAUDITED)
CLASS A
SHARES*
-----------
National Intermediate Tax-Free Bond ............................. 2.25%
Short Term Bond ................................................. 2.25
Wisconsin Tax-Exempt ............................................ 2.25
* Maximum sales charge as a percentage of offering price. Lower sales
charges apply based on amount invested.
A CDSC is imposed on certain redemptions of Class B Shares. The CDSC varies
depending on the number of years from the purchase of Class B Shares until the
redemption of such shares.
YEARS SINCE CONTINGENT DEFERRED
PURCHASE MADE SALES CHARGE
------------------------------------------------------
First ..................... 5%
Second .................... 4%
Third ..................... 3%
Fourth .................... 3%
Fifth ..................... 2%
Sixth ..................... 1%
Seventh and Eighth ........ None
A CDSC of 1% is imposed when Class C Shares are redeemed within the first year
of purchase.
Union Bank, N.A. acts as custodian (the "Custodian") for the Funds. The
Custodian, as compensation for its services, receives a fee at the annual rate
of 0.00625% of each Fund's daily net assets except for the International
Opportunities Fund, which pays fees based on transactions and assets. The
Custodian plays no role in determining the investment policies of the Funds or
which securities are to be purchased or sold in the Funds.
4. INVESTMENT TRANSACTIONS
The purchases and sales (including maturities) of investment securities by the
Equity Funds and Fixed-Income Funds, excluding short-term investments and U.S.
government securities, for the six months ended January 31, 2012 are as follows:
INVESTMENT SECURITIES
-----------------------------
PURCHASES SALES
------------- --------------
Balanced ...................................... $ 5,756,598 $ 7,231,779
Cognitive Value ............................... 104,957,305 111,564,179
Enhanced Growth ............................... 4,848,635 15,907,543
Equity Income ................................. 9,848,828 6,791,955
Geneva Mid Cap Growth ......................... 146,134,622 39,935,331
Geneva Small Cap Growth ....................... 10,805,758 4,894,153
International Opportunities ................... 115,825,003 128,288,734
Large Cap Core Equity ......................... 28,569,208 34,870,602
Large Cap Growth .............................. 25,873,705 31,471,884
Large Cap Value ............................... 6,265,519 31,984,449
NYSE Arca Tech 100 Index ...................... 10,404,383 23,961,408
Small Cap Core ................................ 37,857,593 44,092,564
Value Momentum ................................ 48,384,663 60,554,255
Tactical Capital Growth Allocation ............ 11,812,774 14,104,304
Tactical Growth & Income Allocation ........... 20,461,034 24,416,271
Bond .......................................... 57,893,369 57,785,590
California Intermediate Tax-Free Bond ......... 55,337,864 39,457,396
National Intermediate Tax-Free Bond ........... 10,518,738 9,610,762
INVESTMENT SECURITIES
---------------------------
PURCHASES SALES
------------ ------------
Short Term Bond ........................ $ 35,258,001 $ 28,081,774
Wisconsin Tax-Exempt ................... 9,105,777 9,769,563
The purchases and sales (including maturities) of U.S. government securities by
the Equity Funds and Fixed-Income Funds for the six months ended January 31,
2012 are as follows:
INVESTMENT SECURITIES
----------------------------
PURCHASES SALES
------------ ------------
Balanced ............................... $ 128,305 $ 667,293
Bond ................................... 14,459,147 14,456,789
Short Term Bond ........................ 5,854,607 6,146,324
Investments made by the Asset Allocation Funds in other HighMark Funds are
considered to be investments in Affiliated Companies as defined under section
2(a)(2) of the 1940 Act. A summary of the investment and income activity in each
affiliated registered investment company's Fiduciary Shares for each Asset
Allocation Fund is as follows:
TACTICAL CAPITAL GROWTH ALLOCATION
--------------------------------------------------------------------------------------
REALIZED INCOME FROM
AFFILIATED REGISTERED GAINS AFFILIATED
INVESTMENT COMPANY SUBSCRIPTIONS REDEMPTIONS (LOSSES) INVESTMENTS
------------------------------ ------------- ----------- --------- -----------
Cognitive Value .............. $ 996,957 $ 239,828 $ (15,624) $ 14,705
Enhanced Growth .............. -- 231,243 45,526 --
Equity Income ................ 1,161,513 17,163 (94) 5,272
Geneva Mid Cap
Growth .................... 675,670 196,031 94,952 --
Geneva Small Cap
Growth .................... 753,839 328,586 71,244 --
International
Opportunities ............. 1,503,514 957,178 58,013 178,144
Large Cap Core
Equity (1) ................ 4,918,173 7,707,740 (255,451) 59,221
Large Cap Growth ............. 209,757 852,857 (33,670) 3,534
Large Cap Value .............. 484,997 2,727,998 (681,889) 50,305
NYSE Arca Tech 100
Index ..................... 173,990 63,131 8,939 --
Small Cap Core (1) ........... 1,121,715 1,532,187 306,170 --
Value Momentum ............... 1,106,413 350,275 (13,211) 13,194
Bond ......................... 234,457 454,304 8,039 857
Short Term Bond .............. 862,907 1,083,783 18,081 29,648
Diversified Money
Market .................... 603,300 603,300 -- --
------------- ----------- --------- -----------
TOTAL: ....................... $ 14,807,202 $17,345,604 $(388,975) $ 354,880)
============= =========== ========= ===========
TACTICAL GROWTH & INCOME ALLOCATION
--------------------------------------------------------------------------------------
REALIZED INCOME FROM
AFFILIATED REGISTERED GAINS AFFILIATED
INVESTMENT COMPANY SUBSCRIPTIONS REDEMPTIONS (LOSSES) INVESTMENTS
------------------------------ ------------- ----------- --------- -----------
Cognitive Value .............. $ 1,343,000 $ 451,059 $ (35,788) $ 15,793
Enhanced Growth .............. 61,577 185,455 34,164 --
Equity Income ................ 1,197,996 20,821 1,213 5,599
Geneva Mid Cap
Growth .................... 1,208,271 313,076 150,755 --
Geneva Small Cap
Growth .................... 1,000,829 478,786 65,285 --
International
Opportunities ............. 3,019,030 1,334,407 (75,549) 195,462
Large Cap Core
Equity (1) ................ 4,242,137 5,585,504 763,073 53,158
Large Cap Growth ............. 186,596 869,826 260,194 3,814
Large Cap Value .............. 1,891,278 2,634,567 259,718 51,243
NYSE Arca Tech 100
Index ..................... 205,349 36,741 5,091 --
Small Cap Core (1) ........... 2,507,483 1,956,137 606,169 5,355
164 HIGHMARK(R) FUNDS
TACTICAL GROWTH & INCOME ALLOCATION (CONTINUED)
--------------------------------------------------------------------------------------
REALIZED INCOME FROM
AFFILIATED REGISTERED GAINS AFFILIATED
INVESTMENT COMPANY SUBSCRIPTIONS REDEMPTIONS (LOSSES) INVESTMENTS
----------------------------- ------------- ----------- --------- -----------
Value Momentum ............... $ 1,234,462 $ 479,555 $ (32,093) $ 6,716
Bond ......................... 1,252,082 3,789,029 182,354 78,389
Short Term Bond .............. 1,705,746 5,241,088 31,120 91,368
Diversified Money Market ..... 17,902 17,902 -- --
------------- ----------- ---------- ----------
TOTAL: $ 21,073,738 $23,393,953 $2,215,706 $ 506,897
============= =========== ========== ==========
(1) Includes values in connection with the Reorganization (see Note 8). Amounts
designated as "--" are either $0 or have been rounded to $0.
5. FEDERAL INCOME TAXES
It is each Fund's intention to continue to qualify as a regulated investment
company for federal income tax purposes and distribute all of its taxable income
and net capital gains. Accordingly, no provision for federal income taxes is
required.
The Funds have analyzed their tax positions taken on federal income tax returns
for all open tax years (tax years ended July 31, 2008 through 2011) and have
concluded that no provision for income tax is required in their financial
statements.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax
regulations, which may differ from accounting principles generally accepted in
the United States of America. As a result, the net investment income (loss) and
net realized gain (loss) on investment transactions for a reporting period may
differ significantly from distributions during such period. These book/tax
differences may be temporary or permanent in nature. To the extent these
differences are permanent, they are charged or credited to paid-in capital,
undistributed realized gains, undistributed net investment income or accumulated
net realized gain, as appropriate, in the period that the differences arise.
The tax character of dividends and distributions paid on a tax basis during the
years or periods ended July 31, 2011 and July 31, 2010 were as follows:
LONG-TERM RETURN
TAX-EXEMPT ORDINARY CAPITAL OF
INCOME INCOME (1) GAIN CAPITAL TOTAL
---------- ----------- ----------- -------- ---------
Balanced
2011 .............. $ -- $ 393,280 $ -- $ -- $ 393,280
2010 .............. -- 308,084 -- -- 308,084
Cognitive Value
2011 .............. -- 1,222,687 -- -- 1,222,687
2010 .............. -- 615,000 -- -- 615,000
LONG-TERM RETURN
TAX-EXEMPT ORDINARY CAPITAL OF
INCOME INCOME (1) GAIN CAPITAL TOTAL
---------- ----------- ----------- -------- ----------
Enhanced Growth
2011 .............. $ -- $ -- $ -- $ -- $ --
2010 .............. -- 109,185 -- -- 109,185
Equity Income
2011 .............. -- 490,028 -- -- 490,028
2010 .............. -- 359,452 -- -- 359,452
Geneva Mid
Cap Growth
2011 .............. -- -- 366,455 -- 366,455
2010 .............. -- -- -- -- --
Geneva Small
Cap Growth
2011 .............. -- 228,722 268,310 -- 497,032
2010 .............. -- -- -- -- --
International
Opportunities
2011 .............. -- 4,902,880 -- -- 4,902,880
2010 .............. -- 5,341,844 -- -- 5,341,844
Large Cap Core Equity
2011 .............. -- 694,987 -- -- 694,987
2010 .............. -- 697,080 -- -- 697,080
Large Cap Growth
2011 .............. -- 962,853 -- -- 962,853
2010 .............. -- 713,819 -- -- 713,819
Large Cap Value
2011 .............. -- 2,151,872 -- -- 2,151,872
2010 .............. -- 2,156,204 -- -- 2,156,204
Small Cap Core
2011 .............. -- -- -- -- --
2010 .............. -- 97,082 -- -- 97,082
Value Momentum
2011 .............. -- 6,256,107 71,499 -- 6,327,606
2010 .............. -- 3,643,504 -- -- 3,643,504
Tactical Capital Growth
Allocation
2011 .............. -- 207,318 -- -- 207,318
2010 .............. -- 236,914 -- -- 236,914
Tactical Growth &
Allocation
2011 .............. -- 445,253 -- -- 445,253
2010 .............. -- 444,506 -- -- 444,506
Bond
2011 .............. -- 13,824,027 3,048,333 -- 16,872,360
2010 .............. -- 14,907,264 -- -- 14,907,264
California
Intermediate
Tax-Free Bond
2011 .............. 5,722,725 -- -- -- 5,722,725
2010 .............. 5,333,413 21 274,537 -- 5,607,971
National
Intermediate
Tax-Free Bond
2011 .............. 2,986,280 -- 14,144 -- 3,000,424
2010 .............. 2,903,362 -- -- -- 2,903,362
Short Term Bond
2011 .............. -- 2,936,807 -- -- 2,936,807
2010 .............. -- 2,503,369 -- -- 2,503,369
Wisconsin
Tax-Exempt
2011 .............. 5,355,376 8,551 181,311 -- 5,545,238
2010 .............. 5,298,364 21,671 4,609 -- 5,324,644
(1) For tax purposes, short-term capital gain distributions, if any, are
considered ordinary income distributions.
Amounts designated as "--" are $0.
As of July 31, 2011, the components of distributable earnings (accumulated
losses) on a tax basis were as follows:
TOTAL
DISTRIBUTABLE
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED CAPITAL POST- UNREALIZED OTHER EARNINGS
ORDINARY TAX-EXEMPT LONG-TERM LOSS OCTOBER APPRECIATION TEMPORARY (ACCUMULATED
INCOME INCOME CAPITAL GAIN CARRYFORWARD LOSSES (DEPRECIATION) DIFFERENCES LOSSES)
------------- ------------- ------------- ------------ --------- -------------- ----------- -------------
Balanced ......... $ 12,964 $ -- $ -- $ (816,997) $ -- $ 3,799,602 $ -- $ 2,995,569
Cognitive
Value ......... 358,505 -- -- (2,838,432) -- 4,357,674 -- 1,877,747
Enhanced
Growth ........ -- -- -- (14,638,786) -- 27,903,041 -- 13,264,255
HIGHMARK(R) FUNDS 165
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JANUARY 31, 2012 (UNAUDITED)
TOTAL
DISTRIBUTABLE
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED CAPITAL POST- UNREALIZED OTHER EARNINGS
ORDINARY TAX-EXEMPT LONG-TERM LOSS OCTOBER APPRECIATION TEMPORARY (ACCUMULATED
INCOME INCOME CAPITAL GAIN CARRYFORWARD LOSSES (DEPRECIATION) DIFFERENCES LOSSES)
------------- ------------- ------------- ------------- ---------- --------------- ----------- --------------
Equity Income ..... $ 18,552 $ -- $ -- $ (8,985,533) $ -- $ 2,151,102 $ -- $ (6,815,879)
Geveva Mid Cap
Growth .......... -- -- 10,291,995 -- -- 101,842,810 -- 112,134,805
Geneva Small
Cap Growth ...... -- -- 847,232 -- -- 3,091,703 -- 3,938,935
International
Opportunities .... 6,174,887 -- -- (44,679,388) (229,810) 38,310,867 -- (423,444)
Large Cap Core
Equity .......... 10,804 -- -- (19,119,596) -- 2,872,393 -- (16,236,399)
Large Cap
Growth .......... 87,672 -- -- (15,600,344) -- 17,624,198 -- 2,111,526
Large Cap Value ... -- -- -- (43,462,075) (2,497) (304,162) -- (43,768,734)
NYSE Arca Tech
100 Index ....... -- -- -- (113,784,132) -- 65,767,201 -- (48,016,931)
Small Cap Core .... -- -- -- (5,389,265) -- 4,909,247 -- (480,018)
Value Momentum .... -- -- 9,567,890 (1,220,212) (3,755) 48,836,279 -- 57,180,202
Tactical Capital
Growth
Allocation ...... 49,148 -- -- (9,512,056) (16,487) 276,829 -- (9,202,566)
Tactical Growth
& Income
Allocation ...... 54,908 -- -- (5,688,948) -- 614,975 -- (5,019,065)
Bond .............. 1,553,937 -- 5,475,656 -- -- 18,692,671 -- 25,722,264
California
Intermediate
Tax-Free
Bond ............ -- 102,513 -- (4,425) (111,322) 7,169,941 -- 7,156,707
National
Intermediate
Tax-Free
Bond ............ -- 11,546 -- -- -- 4,646,715 -- 4,658,261
Short Term Bond ... 16,757 -- -- (233,426) -- 1,712,396 -- 1,495,727
Wisconsin
Tax-Exempt ...... -- 13,825 -- -- (438,670) 2,495,388 -- 2,070,543
AMOUNTS DESIGNATED AS "--" ARE EITHER NOT APPLICABLE OR LESS THAN $1.00.
Post-October losses represent losses realized on investment transactions from
November 1, 2010 through July 31, 2011, that, in accordance with Federal income
tax regulations, a Fund may elect to defer and treat as having arisen in the
following year.
For federal income tax purposes, capital loss carryforwards represent net
capital losses of a Fund that may be carried forward for a maximum period of
eight years and applied against future net realized gains. On December 22, 2010,
the Regulated Investment Company Modernization Act of 2010 was enacted to
modernize several of the federal income and excise tax provisions related to
regulated investment companies. Under pre-enactment law, capital losses could be
carried forward for eight years, and carried forward as short-term capital
losses, irrespective of the character of the original loss. New net capital
losses (those earned in taxable years beginning after December 22, 2010) may be
carried forward indefinitely and must retain the character of the original loss.
Such new net capital losses generally must be used by a regulated investment
company before it uses any net capital losses incurred in taxable years
beginning on or before December 22, 2010. This increases the likelihood that net
capital losses incurred in taxable years beginning on or before December 22,
2010 will expire unused. At July 31, 2011, the Funds had capital loss
carryforwards available to offset future realized capital gains through the
indicated expiration dates:
2012 2013 2014 2015 2016 2017 2018 2019 TOTAL
------- -------- ----------- ---------- ----------- ----------- ----------- ----------- ------------
Balanced ........... $ -- $ -- $ -- $ -- $ -- $ -- $ 816,997 $ -- $ 816,997
Cognitive Value .... -- -- -- -- -- -- 2,838,432 -- 2,838,432
Enhanced Growth .... 60,191 761,621 -- -- -- 2,060,779 11,756,195 -- 14,638,786
Equity Income ...... -- -- -- -- 4,909,034 3,822,036 254,463 -- 8,985,533
International
Opportunities ... -- -- -- -- -- 10,968,850 33,710,538 -- 44,679,388
Large Cap Core
Equity .......... -- -- -- -- -- 6,886,471 12,233,125 -- 19,119,596
Large Cap Growth ... -- -- -- -- 943,708* 10,266,788 4,389,848 -- 15,600,344
Large Cap Value .... -- -- -- 1,573,100* 393,275* 21,011,655 20,484,045 -- 43,462,075
NYSE Arca Tech
100 Index ....... -- -- 44,147,742 38,357,084 14,282,341 16,996,965 -- -- 113,784,132
Small Cap Core ..... -- -- -- -- -- 191,551 5,197,714 -- 5,389,265
Value Momentum ..... -- -- -- 159,199* 1,061,013* -- -- -- 1,220,212
Tactical
Capital
Growth
Allocation ...... -- -- -- -- -- 2,232,328 4,958,426 2,321,302 9,512,056
Tactical Growth
& Income
Allocation ...... -- -- -- -- -- 936,922 4,096,549 655,477 5,688,948
California
Intermediate
Tax-Free Bond ... -- -- -- -- -- -- -- 4,425 4,425
Short Term Bond .... -- -- -- -- -- -- 233,426 -- 233,426
* Capital loss carryforward amount was inherited from a merging Fund and may
be subject to IRS limitations in a given year.
AMOUNTS DESIGNATED AS "--" ARE EITHER NOT APPLICABLE OR LESS THAN $1.00.
166 HIGHMARK(R) FUNDS
During the year ended July 31, 2011, capital loss carryforwards that were
utilized and/or expired are as follows:
Balanced ........................................................ $ 1,564,968
Cognitive Value ................................................. 20,075,125
Enhanced Growth ................................................. 2,490,659
Equity Income ................................................... 524,898
Geneva Mid Cap Growth ........................................... 2,277,681
International Opportunities ..................................... 27,504,572
Large Cap Core Equity ........................................... 4,868,905
Large Cap Growth ................................................ 39,025,017
Large Cap Value ................................................. 1,921,863
NYSE Arca Tech 100 Index ........................................ 9,992,076
Small Cap Core .................................................. 4,958,805
Value Momentum .................................................. 15,858,944
Short Term Bond ................................................. 32,767
At January 31, 2012, the total cost of securities for federal income tax
purposes and the aggregate gross unrealized appreciation and depreciation for
securities held by the Funds are as follows:
NET
FEDERAL APPRECIATION
TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------- ------------ ---------------
Balanced ............................... $ 19,860,109 $ 3,881,308 $ (224,472) $ 3,656,836
Cognitive Value ........................ 76,040,260 12,124,423 (657,022) 11,467,401
Enhanced Growth ........................ 53,945,698 31,514,120 (3,347,788) 28,166,332
Equity Income .......................... 19,390,419 3,318,868 (189,896) 3,128,972
Geneva Mid Cap Growth .................. 464,862,392 137,362,892 (4,973,369) 132,389,523
Geneva Small Cap Growth ................ 26,439,654 4,717,110 (395,557) 4,321,553
International Opportunities ............ 186,416,330 27,323,765 (9,871,948) 17,451,817
Large Cap Core Equity .................. 59,961,420 8,474,423 (1,828,539) 6,645,884
Large Cap Growth ....................... 56,859,758 17,372,548 (399,629) 16,972,919
Large Cap Value ........................ 66,679,065 6,338,639 (6,985,980) (647,341)
NYSE Arca Tech 100 Index ............... 121,155,757 85,750,931 (8,880,304) 76,870,627
Small Cap Core ......................... 55,817,696 9,825,429 (1,385,989) 8,439,440
Value Momentum ......................... 259,757,029 48,149,436 (9,876,478) 38,272,958
Tactical Capital Growth Allocation ..... 45,760,099 3,442,092 (441,534) 3,000,558
Tactical Growth & Income Allocation .... 60,664,980 3,167,754 (319,970) 2,847,784
Bond ................................... 358,224,922 27,836,203 (4,298,752) 23,537,451
California Intermediate Tax-Free Bond .. 230,305,372 15,840,361 (25,090) 15,815,271
National Intermediate Tax-Free Bond .... 98,162,196 7,831,016 (7,957) 7,823,059
Short Term Bond ........................ 135,538,550 2,123,662 (730,658) 1,393,004
Wisconsin Tax-Exempt ................... 144,468,636 9,157,950 (29,863) 9,128,087
6. SECURITIES LENDING
The Custodian serves as the Funds' securities lending agent. Certain Funds lend
their securities to approved brokers to earn additional income and receive cash
and/or securities as collateral to secure the loans. The Custodian rebates to
the brokers certain negotiated amounts if cash is received as collateral for
securities on loan. Additionally, the Custodian receives fees for administering
the securities lending program for the Funds. For the period ended January 31,
2012, securities lending income, net of Custodian rebates, is $15,458. Security
lending income, netted of Custodian rebates and fees, is listed in the statement
of operations. The Funds maintain collateral at not less than 100% of the value
of loaned securities. If cash collateral is received, a related liability is
shown on the statements of assets and liabilities. Although the risk of
securities lending is mitigated by the collateral, a Fund could experience a
delay in recovering its securities and a possible loss of income or value if the
borrower fails to return them. The market value of the securities on loan and
collateral at January 31, 2012 and the net income after Custodian rebates and
fees generated from the program during the period ended January 31, 2012, with
respect to such loans are as follows:
MARKET VALUE MARKET INCOME RECEIVED
OF SECURITIES VALUE OF FROM SECURITIES
LOANED COLLATERAL LENDING
------------- ---------- ---------------
International
Opportunities .. $ 573,210 $ 635,580 $ 10,404
HIGHMARK(R) FUNDS 167
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JANUARY 31, 2012 (UNAUDITED)
7. CONCENTRATION OF CREDIT RISK
The California Intermediate Tax-Free Bond Fund invests in debt securities issued
by the State of California and its political subdivisions. The Wisconsin
Tax-Exempt Fund invests in debt securities issued by the State of Wisconsin and
its political subdivisions. The ability of the issuers of the securities held by
these Funds to meet their obligations may be affected by economic and political
developments in their respective states.
Each Fund may invest in securities of foreign issuers in various countries.
These investments may involve certain considerations and risks not typically
associated with investments in the United States, as a result of, among other
factors, the possibility of future political and economic developments and the
level of governmental supervision and regulation of securities markets in the
respective countries.
8. FUND REORGANIZATION
On September 1, 2011, the Trust's Board of Trustees approved plans of
reorganization which provided for the transfer of all of the assets and
liabilities of the HighMark Fundamental Equity Fund ("Fundamental Equity Fund"),
the HighMark Small Cap Value Fund ("Small Cap Value Fund"), the HighMark
Diversified Equity Allocation Fund ("Diversified Equity Allocation Fund") and
the HighMark Income Plus Allocation Fund ("Income Plus Allocation Fund"),
collectively the Merging Funds, for shares of the HighMark Large Cap Core Equity
Fund ("Large Cap Core Equity Fund"), the HighMark Small Cap Core Fund ("Small
Cap Core Fund"), the HighMark Tactical Capital Growth Allocation Fund ("Tactical
Capital Growth Allocation Fund") and the HighMark Tactical Growth & Income
Allocation Fund ("Tactical Growth & Income Allocation Fund"), collectively the
Acquiring Funds, respectively. The consummation of the reorganizations took
place on October 28, 2011.
CLASS F CLASS F CLASS A CLASS A CLASS C CLASS C
SHARES NET ASSET SHARES NET ASSET SHARES NET ASSET
MERGING FUNDS ACQUIRING FUNDS ISSUED VALUE ISSUED VALUE ISSUED VALUE
---------------------------------- -------------------------- --------- --------- --------- --------- --------- ---------
Fundamental Equity Fund Large Cap Core Equity Fund 1,836,177 $ 8.44 4,544,217 $ 8.42 3,269,150 $ 8.19
-----------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Fund * Small Cap Core Fund 1,458,617 $ 18.06 663,271 $ 17.91 232,398 $ 17.47
-----------------------------------------------------------------------------------------------------------------------------------
Tactical Capital Growth
Diversified Equity Allocation Fund Allocation Fund 21,079 $ 20.68 152,654 $ 20.66 270,025 $ 20.44
-----------------------------------------------------------------------------------------------------------------------------------
Tactical Growth &
Income Plus Allocation Fund Income Allocation Fund 17,234 $ 21.20 362,847 $ 21.13 387,105 $ 21.01
-----------------------------------------------------------------------------------------------------------------------------------
* This Fund had Class B shares outstanding immediately prior to the
reorganization, which were exchanged for Class A shares.
The conversion ratios for each Share class issued in the reorganization were as
follows:
MERGING FUNDS ACQUIRING FUNDS CLASS F CLASS A CLASS B* CLASS C
---------------------------------- -------------------------- ------- ------- -------- -------
Fundamental Equity Fund Large Cap Core Equity Fund 2.4152 2.4112 N/A 2.4739
---------------------------------------------------------------------------------------------------------
Small Cap Value Fund * Small Cap Core Fund 0.7275 0.7147 0.6797 0.6865
---------------------------------------------------------------------------------------------------------
Tactical Capital Growth
Diversified Equity Allocation Fund Allocation Fund 0.8681 0.8669 N/A 0.8586
---------------------------------------------------------------------------------------------------------
Tactical Growth & Income
Income Plus Allocation Fund Allocation Fund 0.9399 0.9434 N/A 0.9421
---------------------------------------------------------------------------------------------------------
* Class B shares were exchanged for Class A shares.
The following information relates to the Merging and Acquiring Funds immediately
prior and immediately after the consummation of the reorganization:
SHARES UNREALIZED
MERGING FUND/ACQUIRING FUND NET ASSETS OUTSTANDING APP/(DEP)
----------------------------- ------------ ----------- -----------
Fundamental Equity Fund (before reorganization) $ 15,568,306 763,465 $ 1,851,290
Large Cap Core Equity Fund (before reorganization) 53,946,635 6,392,682 N/A
Large Cap Core Equity Fund (after reorganization) 69,514,941 8,236,643 N/A
-------------------------------------------------------------------------------------------------------------
Small Cap Value Fund (before reorganization) 42,281,601 3,273,200 (4,223,966)
Small Cap Core Fund (before reorganization) 27,032,261 1,497,360 N/A
Small Cap Core Fund (after reorganization) 69,313,862 3,851,647 N/A
-------------------------------------------------------------------------------------------------------------
Diversified Equity Allocation Fund (before reorganization) 9,110,686 514,867 (411,625)
Tactical Capital Growth Allocation Fund (before reorganization) 40,958,109 1,990,590 N/A
Tactical Capital Growth Allocation Fund (after reorganization) 50,068,794 2,434,347 N/A
-------------------------------------------------------------------------------------------------------------
Income Plus Allocation Fund (before reorganization) 16,163,124 813,848 493,861
Tactical Growth & Income Allocation Fund (before reorganization) 49,458,645 2,346,103 N/A
Tactical Growth & Income Allocation Fund (after reorganization) 65,621,769 3,113,289 N/A
168 HIGHMARK(R) FUNDS
9. NEW ACCOUNTING PRONOUNCEMENT
In May 2011, the Financial Accounting Standards Board ("FASB") issued Accounting
Standards Update ("ASU") No. 2011-04 "Amendments to Achieve Common Fair Value
Measurement and Disclosure Requirements in U.S. GAAP and IFRSs". ASU No. 2011-04
includes common requirements for measurement of and disclosure about fair value
between U.S. GAAP and IFRS. ASU No. 2011-04 will require reporting entities to
disclose the following information for fair value measurements categorized
within Level 3 of the fair value hierarchy: quantitative information about the
unobservable inputs used in the fair value measurement, the valuation processes
used by the reporting entity and a narrative description of the sensitivity of
the fair value measurement to changes in unobservable inputs and the
interrelationships between those unobservable inputs. In addition, ASU No.
2011-04 will require reporting entities to make disclosures about amounts and
reasons for all transfers in and out of Level 1 and Level 2 fair value
measurements. The new and revised disclosures are effective for interim and
annual reporting periods beginning after December 15, 2011. Management is
currently evaluating the implications of ASU No. 2011-04 and its impact on the
financial statements.
In December 2011, FASB issued ASU No. 2011-11, "Disclosures about Offsetting
Assets and Liabilities". ASU No. 2011-11 requires disclosures to make financial
statements that are prepared under U.S. GAAP more comparable to those prepared
under IFRS's. The new disclosure requirements mandate that entities disclose
both gross and net information about instruments and transactions eligible for
offset in the statement of assets and liabilities as well as instruments and
transactions subject to an agreement similar to a master netting arrangement. In
addition, ASU No. 2011-11 requires disclosure of collateral received and posted
in connection with master netting agreements or similar arrangements. New
disclosures are required for annual reporting periods beginning on or after
January 1, 2013, and interim periods within those annual periods. Management is
evaluating the impact of ASU No. 2011-11 on the financial statements and
disclosures.
10. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds
through the date the financial statements were issued and has determined that
there are no subsequent events that would require disclosure in or adjustment to
the financial statements with the exception of the following:
The Bank of New York Mellon Corporation ("BNY Mellon") recently announced that
it has agreed to sell BNY Mellon Distributors LLC and its four subsidiaries
(including the Distributor) to Foreside Distributors, a subsidiary of Foreside
Financial Group (the "Transaction"). Subject to any necessary approvals, the
Transaction is anticipated to close on or about April 1, 2012. Upon the closing
of the Transaction, BNY Mellon Distributors will become an indirect, wholly
owned subsidiary of Foreside Financial Group, and it is anticipated will be
named Foreside Funds Distributors LLC.
On March 16, 2012, the shareholders of the Large Cap Value Fund (the "Fund")
approved the reorganization of the Fund into the Value Momentum Fund. This
reorganization is expected to be completed on or around March 26, 2012.
The Trust's Board of Trustees approved the name change of the Value Momentum
Fund to the Value Fund effective March 26, 2012.
HIGHMARK(R) FUNDS 169
FUND INFORMATION (UNAUDITED)
JANUARY 31, 2012 (UNAUDITED)
HighMark Funds is committed to managing our mutual funds in the best interests
of our shareholders. The Board of Trustees of HighMark Funds has delegated the
authority to vote proxies on behalf of the Funds that own voting securities to
the Adviser. The Board has authorized the Adviser to delegate proxy voting
authority with respect to a Fund to that Fund's sub-adviser. A description of
the proxy voting guidelines and policies that the Funds use to determine how to
vote proxies relating to portfolio securities is available (i) without charge,
upon request by calling our investor services desk at 1-800-433-6884; (ii) on
the SEC's website at http://www.sec.gov; and (iii) on HighMark Funds' website at
http://www.highmarkfunds.com. Information relating to how a Fund voted proxies
relating to portfolio securities during the most recent 12-month period ended
June 30 is available (i) without charge, upon request by calling our investor
services desk at 1-800-433-6884; (ii) on the SEC's website at
http://www.sec.gov; and (iii) on the HighMark Funds' website at
http://www.highmarkfunds.com. The Trust files its complete schedule of portfolio
holdings with the SEC for the first and third quarters of each fiscal year on
Form N-Q within sixty days after the end of the period. The Funds' Forms N-Q are
(i) available without charge upon request by calling our investor services desk
at 1-800-433-6884; (ii) available on the SEC's website at http://www.sec.gov;
(iii) available on the HighMark Funds' website at http://www.highmarkfunds.com;
and (iv) may be reviewed and copied at the SEC's Public Reference Room in
Washington, DC. Information on the operation of the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
FIDUCIARY SHARES INFORMATION
FUND CUSIP TICKER FUND #
BALANCED 431114792 HMBAX 491
COGNITIVE VALUE 431112390 HCLFX 2209
ENHANCED GROWTH 431112358 HEGFX 2210
EQUITY INCOME 431113109 NJPFX 2643
GENEVA MID CAP GROWTH 431113505 PNMFX 2647
GENEVA SMALL CAP GROWTH 431113885 HGFSX 2650
INTERNATIONAL OPPORTUNITIES 431112341 HIOFX 2211
LARGE CAP CORE EQUITY 431112788 HMCFX 1627
LARGE CAP GROWTH 431114818 HMGRX 492
LARGE CAP VALUE 431114206 HMIEX 490
NYSE ARCA TECH 100 INDEX 431113844 PTSFX 2654
SMALL CAP CORE 431112465 HSAFX 2214
VALUE MOMENTUM 431114677 HMVMX 871
TACTICAL CAPITAL GROWTH ALLOCATION 431112283 HGAFX 2198
TACTICAL GROWTH & INCOME ALLOCATION 431112325 HGIFX 2197
BOND 431114305 HMBDX 489
CALIFORNIA INTERMEDIATE TAX-FREE BOND 431114644 HMITX 847
NATIONAL INTERMEDIATE TAX-FREE BOND 431112655 HMNTX 1600
SHORT TERM BOND 431112549 HMSFX 1506
WISCONSIN TAX-EXEMPT 431113794 WTEFX 2658
170 HIGHMARK(R) FUNDS
RETAIL SHARES INFORMATION
FUND CUSIP TICKER FUND #
BALANCED
CLASS A SHARES 431114776 HMBRX 480
CLASS B SHARES 431114545 HMBBX 452
CLASS C SHARES 431112887 HMBCX 1760
COGNITIVE VALUE
CLASS A SHARES 431112432 HCLAX 2203
CLASS C SHARES 431112424 HCLCX 2206
ENHANCED GROWTH
CLASS A SHARES 431112382 HEHAX 2204
CLASS C SHARES 431112374 HEGCX 2207
EQUITY INCOME
CLASS A SHARES 431113208 NJPAX 2640
CLASS B SHARES 431113307 NJPBX 2641
CLASS C SHARES 431113406 NJPCX 2642
GENEVA MID CAP GROWTH
CLASS A SHARES 431113604 PNMAX 2644
CLASS B SHARES 431113703 PNMBX 2645
CLASS C SHARES 431113802 MGPCX 2646
GENEVA SMALL CAP GROWTH
CLASS A SHARES 431113877 HGASX 2648
CLASS C SHARES 431113851 HGCSX 2649
INTERNATIONAL OPPORTUNITIES
CLASS A SHARES 431112481 HIOAX 2205
CLASS C SHARES 431112473 HITCX 2208
LARGE CAP CORE EQUITY
CLASS A SHARES 431112770 HCEAX 1626
CLASS B SHARES 431112762 HCEBX 1628
CLASS C SHARES 431112754 HCECX 1632
LARGE CAP GROWTH
CLASS A SHARES 431114768 HMRGX 481
CLASS B SHARES 431114511 HMGBX 455
CLASS C SHARES 431112879 HGRCX 1755
LARGE CAP VALUE
CLASS A SHARES 431114784 HMERX 479
CLASS B SHARES 431114537 HIEBX 457
CLASS C SHARES 431112861 HIECX 1754
HIGHMARK(R) FUNDS 171
FUND INFORMATION (UNAUDITED) (CONCLUDED)
JANUARY 31, 2012
RETAIL SHARES INFORMATION (CONTINUED)
FUND CUSIP TICKER FUND #
NYSE ARCA TECH 100 INDEX
CLASS A SHARES 431113836 PPTIX 2651
CLASS B SHARES 431113828 PSEBX 2652
CLASS C SHARES 431113810 PTICX 2653
SMALL CAP CORE
CLASS A SHARES 431112457 HSAAX 2212
CLASS C SHARES 431112440 HSCAX 2213
VALUE MOMENTUM
CLASS A SHARES 431114628 HMVLX 870
CLASS B SHARES 431114529 HVMBX 456
CLASS C SHARES 431112812 HVMCX 1753
TACTICAL CAPITAL GROWTH ALLOCATION
CLASS A SHARES 431112564 HMAAX 1494
CLASS C SHARES 431112556 HMACX 1497
TACTICAL GROWTH & INCOME ALLOCATION
CLASS A SHARES 431112580 HMRAX 1493
CLASS C SHARES 431112572 HMRCX 1496
BOND
CLASS A SHARES 431114743 HMRBX 478
CLASS B SHARES 431112747 HBDBX 1090
CLASS C SHARES 431112648 HBDCX 1492
CALIFORNIA INTERMEDIATE TAX-FREE BOND
CLASS A SHARES 431114578 HMCIX 846
CLASS B SHARES 431112796 HCABX 1761
CLASS C SHARES 431112630 HCTCX 1491
NATIONAL INTERMEDIATE TAX-FREE BOND
CLASS A SHARES 431112663 HMNFX 1598
CLASS C SHARES 431112622 HNTCX 1490
SHORT TERM BOND
CLASS A SHARES 431112523 HMSAX 1505
CLASS C SHARES 431112515 HMTCX 1470
172 HIGHMARK(R) FUNDS
RETAIL SHARES INFORMATION (CONTINUED)
FUND CUSIP TICKER FUND #
WISCONSIN TAX-EXEMPT
CLASS A SHARES 431113786 PWTEX 2655
CLASS B SHARES 431113778 WTEBX 2656
CLASS C SHARES 431113760 WTECX 2657
CLASS M SHARES INFORMATION
COGNITIVE VALUE 431112416 HCLMX 2200
ENHANCED GROWTH 431112366 HEGMX 2201
INTERNATIONAL OPPORTUNITIES 431112499 HIOMX 2202
CLASS U SHARES INFORMATION
VALUE MOMENTUM 431113752 HVMUX 2248
HIGHMARK(R) FUNDS 173
NOTES
174 HIGHMARK(R) FUNDS
NOTES
HIGHMARK(R) FUNDS 175
SERVICE PROVIDERS & BOARD OF TRUSTEES
INVESTMENT ADVISER & ADMINISTRATOR
HighMark Capital Management, Inc.
350 California Street, Suite 1600
San Francisco, CA 94104
SUB-ADVISERS
Cognitive Value Fund,
Enhanced Growth Fund and
International Opportunities Fund:
Bailard, Inc.
950 Tower Lane, Suite 1900
Foster City, CA 94404-2131
Geneva Mid Cap Growth Fund and
Geneva Small Cap Growth Fund:
Geneva Capital Management Ltd.
100 East Wisconsin Avenue, Suite 2550
Milwaukee, WI 53202
Equity Income Fund,
NYSE Arca Tech 100 Index Fund
and Wisconsin Tax-Exempt Fund:
Ziegler Lotsoff Capital Management, LLC
20 North Clark Street,
Suite 3400
Chicago, IL 60602
CUSTODIAN
Union Bank, N.A.
350 California Street
San Francisco, CA 94104
DISTRIBUTOR
HighMark Funds Distributors, LLC
760 Moore Road
King of Prussia, PA 19406
LEGAL COUNSEL
Ropes & Gray LLP
Three Embarcadero Center
San Francisco, CA 94111-4006
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
1700 Market Street
Philadelphia, PA 19103
TRANSFER AGENT
Boston Financial Data Services
PO Box 8416
Boston, MA 02266
BOARD OF TRUSTEES
David E. Benkert, Chairman
Thomas L. Braje
Evelyn S. Dilsaver
David A. Goldfarb
Earle A. Malm, II
Michael L. Noel
Mindy M. Posoff
176 HIGHMARK(R) FUNDS
TO LEARN MORE ABOUT HIGHMARK, VISIT US AT
WWW.HIGHMARKFUNDS.COM OR CALL:
INVESTOR SERVICES DESK
1.800.433.6884
INVESTMENT PROFESSIONAL SUPPORT DESK
1.800.455.5609
THANK YOU
FOR YOUR INVESTMENT.
[HIGHMARK FUNDS LOGO OMITTED](R)
------------------------------
Mutual Funds:
o are not FDIC insured
o have no bank guarantee
o may lose value
------------------------------
[HIGHMARK FUNDS LOGO OMITTED](R)
445 South Figueroa Street o Suite 306 o Los Angeles o California o 90071
WWW.HIGHMARKFUNDS.COM
HMKSA0050200
84808-B (01/12)
--------------------------------------------------------------------------------
JANUARY 31, 2012
--------------------------------------------------------------------------------
HIGHMARK
The smarter approach to investing.
MONEY MARKET
SEMI ANNUAL
------------------
REPORT
[HIGHMARK FUNDS LOGO OMITTED](R)
TABLE OF CONTENTS
management's discussion of fund performance
california tax-free money market fund .............................. 2
taxable money market funds ......................................... 3
disclosure of fund expenses .............................................. 4
schedules of investments ................................................. 6
statements of assets and liabilities ..................................... 18
statements of operations ................................................. 20
statements of changes in net assets ...................................... 22
financial highlights ..................................................... 28
notes to financial statements ............................................ 31
fund information ......................................................... 36
service providers & board of trustees .................................... 40
This report and the financial statements contained herein are submitted for the
general information of HighMark Funds' shareholders. This report is not
authorized for distribution to prospective investors unless preceded or
accompanied by an effective prospectus.
Shares of HighMark Funds are not deposits or obligations of, or guaranteed by,
Union Bank, N.A. or any of its subsidiaries or affiliates. Such shares are also
not federally insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board, or any other agency. Investments in shares of mutual funds
involve risk, including the possible loss of principal. HighMark Funds
Distributors, LLC serves as distributor for HighMark Funds and is not affiliated
with the adviser of HighMark Funds, HighMark Capital Management, Inc., or with
Union Bank, N.A.
FUND SECTORS
CALIFORNIA TAX-FREE
MONEY MARKET FUND
SECTOR % OF
PORTFOLIO
REVENUE BONDS 67.0%
GENERAL OBLIGATIONS 19.0
CERTIFICATES OF PARTICIPATION 6.3
TAX EXEMPT COMMERCIAL PAPER 3.0
SPECIAL TAX 2.7
TAX AND REVENUE ANTICIPATION NOTES 2.0
CALIFORNIA TAX-FREE MONEY MARKET FUND* (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark California Tax-Free
Money Market Fund (the "Fund") produced a seven-day effective yield of 0.01%
(Fiduciary Shares).** Using a combined federal and California state income tax
rate of 34.90%, the seven-day effective yield is equivalent to a 0.02% taxable
yield.
FACTORS AFFECTING PERFORMANCE
During the Fund's reporting period, the Federal Reserve Board announced it would
maintain its historically low short-term interest rates of between 0.00% and
0.25% until 2014. Well-publicized sovereign debt and banking issues in Europe
continued to play out, leading to increased volatility in global debt markets.
Domestically, municipal note yields declined from 0.30% to 0.24%, reflecting a
lack of supply and lower rates in the taxable bond market.
California continued to experience fiscal challenges. Revenues were short of
assumptions and an additional $1 billion in automatic budgets cuts were planned,
mostly from education and social programs. One sign of optimism was a reduction
in the number of unemployed from 12% to 11%.
As of January 31, 2012, California's long-term ratings from the three major
rating agencies are A1/A-/A-.
* AN INVESTMENT IN THE HIGHMARK MONEY MARKET FUNDS IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT. ALTHOUGH THESE FUNDS SEEK TO MAINTAIN A
STABLE NET ASSET VALUE OF $1.00, THERE CAN BE NO ASSURANCE THAT THEY WILL
BE ABLE TO DO SO. SOME OR ALL OF THE INCOME YOU RECEIVE FROM HIGHMARK
CALIFORNIA TAX-FREE MONEY MARKET FUND MAY BE SUBJECT TO CERTAIN STATE AND
LOCAL TAXES, AND IN SOME CASES, TO THE FEDERAL ALTERNATIVE MINIMUM TAX. IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND. THE QUOTED YIELDS
REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE RESULTS.
INVESTMENT RETURN WILL FLUCTUATE. CURRENT PERFORMANCE MAY BE LOWER OR
HIGHER THAN THE YIELDS QUOTED. PERFORMANCE DATA CURRENT TO THE MOST RECENT
MONTH-END IS AVAILABLE AT HIGHMARKFUNDS.COM.
** The seven-day effective yields, which are equal to the seven-day current
yields at January 31, 2012, are as follows:
CLASS A CLASS S FIDUCIARY
SHARES SHARES SHARES
--------------------------------------------------------------------------------
California Tax-Free Money Market Fund
Subsidized+ 0.01% 0.01% 0.01%
Non-Subsidized -0.81% -0.86% -0.56%
+ The Fund's Adviser has contractually agreed to waive fees and reimburse
expenses in order to keep total operating expenses for all share classes
from exceeding the net expense ratios listed in the prospectus, for the
period beginning December 1, 2011 and ending on November 30, 2012. The
yields shown also reflect voluntary waivers in place. The Adviser may
recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
2 HIGHMARK(R) FUNDS
FUND SECTORS
DIVERSIFIED MONEY
MARKET FUND
SECTOR % OF
PORTFOLIO
COMMERCIAL PAPER 31.3%
CERTIFICATES OF DEPOSIT 29.4
REPURCHASE AGREEMENTS 25.3
CORPORATE OBLIGATION 6.4
FOREIGN CORPORATE OBLIGATION 4.2
FOREIGN BANK NOTE 2.1
U.S. GOVERNMENT AGENCY OBLIGATION 1.0
VARIABLE RATE DEMAND NOTES 0.3
TREASURY PLUS MONEY
MARKET FUND
SECTOR % OF
PORTFOLIO
REPURCHASE AGREEMENTS 84.3%
U.S. GOVERNMENT AGENCY OBLIGATIONS 9.4
U.S. GOVERNMENT GUARANTEED OBLIGATION 6.3
U.S. GOVERNMENT MONEY
MARKET FUND
SECTOR % OF
PORTFOLIO
REPURCHASE AGREEMENTS 64.1%
U.S. GOVERNMENT AGENCY OBLIGATIONS 16.5
VARIABLE RATE DEMAND NOTES 14.1
U.S. GOVERNMENT GUARANTEED OBLIGATIONS 5.3
100% U.S. TREASURY MONEY
MARKET FUND
SECTOR % OF
PORTFOLIO
U.S. TREASURY BILLS 100.0%
TAXABLE MONEY MARKET FUNDS* (UNAUDITED)
PERFORMANCE
For the six-month period ended January 31, 2012, HighMark 100% U.S. Treasury
Money Market Fund posted a seven-day effective yield of 0.00% (Fiduciary
Shares),** HighMark Treasury Plus Money Market Fund posted a seven-day effective
yield of 0.00% (Fiduciary Shares),** HighMark U.S. Government Money Market Fund
posted a seven-day effective yield of 0.00% (Fiduciary Shares)** and HighMark
Diversified Money Market Fund posted a seven-day effective yield of 0.02%
(Fiduciary Shares).** (These funds are collectively the "Funds," and each is a
"Fund.")
FACTORS AFFECTING PERFORMANCE
Although the global economic environment faced substantial challenges during the
Funds' reporting period, a recovery in the United States appeared to gain
traction. Effects of the low interest rate environment and quantitative easing
measures undertaken by the Federal Reserve since late 2008 continued to be felt,
and the Federal Reserve indicated late in the reporting period that their
commitment to hold rates at these historically low levels would now extend to
2014. Importantly, domestic employment trended higher in five of the months of
the reporting period, and the housing market stabilized.
The perceived "safe haven" status of the United States continued to drive strong
demand for U.S. Treasury and U.S. agency securities. Securities with maturities
of less than three months traded at or near record low yields during the
reporting period, and at times HighMark 100% U.S. Treasury Money Market Fund
struggled to invest in positive yields.
Both HighMark Treasury Plus Fund and HighMark U.S. Government Money Market Fund
continued their strategies of maintaining higher overnight repurchase agreement
positions to ensure adequate liquidity. Although still constrained by limited
supply of direct-issue securities, technical distortions abated and collateral
for repurchase agreements was more readily available during the reporting
period.
First-tier money-market funds remain challenged by a shortage of quality
investment choices. While a number of eurozone peripheral states have made
progress in addressing their fiscal issues, Greece still presented major
challenges, and the resulting market uncertainty negatively impacted market
confidence. HighMark Diversified Money Market Fund further reduced its exposure
to this area during the reporting period, in addition to shortening maturities
and boosting overnight liquidity positions. These defensive moves, while
warranted, brought portfolio returns lower throughout the reporting period.
* AN INVESTMENT IN THE HIGHMARK MONEY MARKET FUNDS IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT. ALTHOUGH THESE FUNDS SEEK TO MAINTAIN A
STABLE NET ASSET VALUE OF $1.00, THERE CAN BE NO ASSURANCE THAT THEY WILL
BE ABLE TO DO SO. IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS.
THE QUOTED YIELDS REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE
FUTURE RESULTS. INVESTMENT RETURN WILL FLUCTUATE. CURRENT PERFORMANCE MAY
BE LOWER OR HIGHER THAN THE YIELDS QUOTED. PERFORMANCE DATA CURRENT TO THE
MOST RECENT MONTH-END IS AVAILABLE AT HIGHMARK-FUNDS.COM.
** The seven-day effective yields, which are equal to the seven-day current
yields at January 31, 2012, are as follows:
CLASS A CLASS B CLASS C CLASS S FIDUCIARY
SHARES SHARES SHARES SHARES SHARES
----------------------------------------------------------------------------------------
Diversified Money Market Fund
Subsidized+ 0.02% n/a n/a 0.02% 0.02%
Non-Subsidized -0.63% n/a n/a -0.68% -0.38%
Treasury Plus Money Market Fund
Subsidized+ 0.00% n/a n/a 0.00% 0.00%
Non-Subsidized -0.95% n/a n/a 0.00% -0.70%
U.S. Government Money Market Fund
Subsidized+ 0.00% 0.00% 0.00% 0.00% 0.00%
Non-Subsidized -0.88% -1.38% -1.18% -0.93% -0.63%
100% U.S. Treasury Money Market Fund
Subsidized+ 0.00% n/a n/a 0.00% 0.00%
Non-Subsidized -1.00% n/a n/a -1.04% -0.75%
+ The Fund's Adviser has contractually agreed to waive fees and reimburse
expenses in order to keep total operating expenses for all share classes
from exceeding the net expense ratios listed in the prospectus, for the
period beginning December 1, 2011 and ending on November 30, 2012. The
yields shown also reflect voluntary waivers in place. The Adviser may
recoup from the Fund any of the fees and expenses it has waived and/or
reimbursed until the end of the third fiscal year after the end of the
fiscal year in which such waiver and/or reimbursement occurs, subject to
certain limitations. This recoupment could reduce the Fund's future total
return.
HIGHMARK(R) FUNDS 3
DISCLOSURE OF FUND EXPENSES
We believe it is important for you to understand the impact of fees regarding
your investment. All mutual funds have operating expenses. As a shareholder of a
mutual fund, you incur two types of costs: (1) transaction costs and (2) ongoing
costs, which include costs for portfolio management, administrative services,
distribution fees and shareholder reports (like this one), among others.
Operating expenses, which are deducted from a mutual fund's gross income,
directly reduce the investment return of the mutual fund. A mutual fund's
expenses are expressed as a percentage of its average net assets. This figure is
known as the expense ratio. The following examples are intended to help you
understand the ongoing fees (in dollars) of investing in each Fund and to
compare these costs with those of other mutual funds. The examples are based on
an investment of $1,000 made at the beginning of the period shown and held for
the entire period.
The table below illustrates each Fund's costs in two ways.
o ACTUAL FUND RETURN. This section helps you to estimate the actual expenses
after fee waivers that you paid over the period. The "Ending Account
Value" shown is derived from the Fund's actual return, and the fourth
column shows the dollar amount that would have been paid by an investor
who started with $1,000 in the Fund. You may use the information here,
together with the amount you invested, to estimate the expenses that you
paid over the period.
To do so, simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number given for your Fund under the heading "Expenses Paid During
Period."
o HYPOTHETICAL 5% RETURN. This section is intended to help you compare each
Fund's costs with those of other mutual funds. It assumes that the Fund
had a return of 5% before expenses during the year, but that the expense
ratio is unchanged. In this case, because the return used is not the
Fund's actual return, the results do not apply to your investment. The
example is useful in making comparisons because the Securities and
Exchange Commission ("SEC") requires all mutual funds to calculate
expenses based on a 5% return. You can assess each Fund's costs by
comparing this hypothetical example with the hypothetical examples that
appear in shareholder reports of other mutual funds.
Please note that the expenses shown in the table are meant to highlight and help
you compare ongoing costs only and do not reflect any transactional costs such
as redemption fees, which are described in each Fund's prospectus. If these fees
were applied to your account, your costs would be higher.
BEGINNING ENDING NET EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE AT VALUE AT EXPENSE DURING
8/1/11 1/31/12 RATIOS PERIOD*
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares .......... $1,000.00 $1,000.10 0.25% $1.26
Class A Shares ............ 1,000.00 1,000.10 0.25% 1.26
Class S Shares ............ 1,000.00 1,000.10 0.25% 1.26
HYPOTHETICAL
Fiduciary Shares .......... $1,000.00 $1,023.88 0.25% $1.27
Class A Shares ............ 1,000.00 1,023.88 0.25% 1.27
Class S Shares ............ 1,000.00 1,023.88 0.25% 1.27
--------------------------------------------------------------------------------
DIVERSIFIED MONEY MARKET FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares .......... $1,000.00 $1,000.10 0.40% $2.01
Class A Shares ............ 1,000.00 1,000.10 0.40% 2.01
Class S Shares ............ 1,000.00 1,000.10 0.40% 2.01
HYPOTHETICAL
Fiduciary Shares .......... $1,000.00 $1,023.13 0.40% $2.03
Class A Shares ............ 1,000.00 1,023.13 0.40% 2.03
Class S Shares ............ 1,000.00 1,023.13 0.40% 2.03
BEGINNING ENDING NET EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE AT VALUE AT EXPENSE DURING
8/1/11 1/31/12 RATIOS PERIOD*
TREASURY PLUS MONEY MARKET FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares .......... $1,000.00 $1,000.00 0.08% $0.40
Class A Shares ............ 1,000.00 1,000.00 0.08% 0.40
Class S Shares ............ 1,000.00 1,000.00 0.08% 0.40
HYPOTHETICAL
Fiduciary Shares .......... $1,000.00 $1,024.73 0.08% $0.41
Class A Shares ............ 1,000.00 1,024.73 0.08% 0.41
Class S Shares ............ 1,000.00 1,024.73 0.08% 0.41
--------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares .......... $1,000.00 $1,000.00 0.12% $0.60
Class A Shares ............ 1,000.00 1,000.00 0.12% 0.60
Class B Shares ............ 1,000.00 1,000.00 0.12% 0.60
Class C Shares ............ 1,000.00 1,000.00 0.12% 0.60
Class S Shares ............ 1,000.00 1,000.00 0.12% 0.60
HYPOTHETICAL
Fiduciary Shares .......... $1,000.00 $1,024.53 0.12% $0.61
Class A Shares ............ 1,000.00 1,024.53 0.12% 0.61
Class B Shares ............ 1,000.00 1,024.53 0.12% 0.61
Class C Shares ............ 1,000.00 1,024.53 0.12% 0.61
Class S Shares ............ 1,000.00 1,024.53 0.12% 0.61
4 HIGHMARK(R) FUNDS
BEGINNING ENDING NET EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE AT VALUE AT EXPENSE DURING
8/1/11 1/31/12 RATIOS PERIOD*
--------------------------------------------------------------------------------
100% U.S. TREASURY MONEY MARKET FUND
--------------------------------------------------------------------------------
ACTUAL FUND RETURN
Fiduciary Shares .......... $1,000.00 $1,000.00 0.01% $0.05
Class A Shares ............ 1,000.00 1,000.00 0.01% 0.05
Class S Shares ............ 1,000.00 1,000.00 0.01% 0.05
HYPOTHETICAL
Fiduciary Shares .......... $1,000.00 $1,025.09 0.01% $0.05
Class A Shares ............ 1,000.00 1,025.09 0.01% 0.05
Class S Shares ............ 1,000.00 1,025.09 0.01% 0.05
--------------------------------------------------------------------------------
* Expenses are equal to the fund's annualized expense ratio multiplied by
the average account value over the period, multiplied by 184/366 (to
reflect the one half year period).
HIGHMARK(R) FUNDS 5
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - 99.9%
--------------------------------------------------------------------------------
CALIFORNIA - 90.7%
ABAG, Multi-Family Housing
Finance Authority,
Non-Profit,(A) (B) (C)
Episcopal Homes Foundation,
COP, LOC Wells Fargo Bank N.A.
0.050%, 02/01/25 $ 4,740,000 $ 4,740,000
Oshman Family Jewish Community,
RB, LOC LaSalle Bank N.A.
0.070%, 06/01/37 2,300,000 2,300,000
Alameda County, Industrial
Development Authority Revenue,
Ettore Products Company
Project, Ser A, RB, AMT,
LOC Comerica Bank (A) (B) (C)
0.150%, 12/01/30 4,000,000 4,000,000
Bay Area Toll Authority, (A) (B) (C)
Ser B-2, RB, LOC JPMorgan
Chase Bank
0.030%, 04/01/47 6,025,000 6,025,000
California Infrastructure & Economic
Development Bank, (A) (B) (C)
California Academy, Ser E, RB
LOC Northern Trust Co.
0.040%, 09/01/38 5,600,000 5,600,000
Contemporary Jewish Museum, RB,
LOC Bank of America N.A.
0.070%, 12/01/36 3,400,000 3,400,000
Jewish Community Center, Ser A, RB,
LOC Bank of America N.A.
0.070%, 12/01/31 4,730,000 4,730,000
Los Angeles Museum, Ser A, RB,
LOC Wells Fargo Bank N.A.
0.040%, 09/01/37 3,700,000 3,700,000
Orange County Performing,
RB, LOC Bank of America N.A.
0.100%, 07/01/34 24,000,000 24,000,000
Rand Corporation, Ser B, RB,
LOC Bank of America
0.060%, 04/01/42 800,000 800,000
California Pollution Control Financing
Authority, (A) (B) (C)
Pacific Gas & Electric,
Ser B, RB, AMT, LOC JPMorgan
Chase Bank
0.070%, 11/01/26 1,000,000 1,000,000
Ser C, RB, LOC JPMorgan
Chase Bank
0.040%, 11/01/26 3,700,000 3,700,000
Ser E, RB
0.040%, 11/01/26 2,000,000 2,000,000
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
Recsource Recovery, Wadham
Energy, Ser C, RB
LOC BNP Paribas
1.250%, 11/01/17 $12,000,000 $ 12,000,000
California State (A) (B) (C)
Ser A, Sub-Ser A-1-2, GO, LOC
Royal Bank of Canada
0.040%, 05/01/40 23,000,000 23,000,000
Ser A, Sub-Ser A-2-2, GO, LOC
Royal Bank of Canada
0.040%, 05/01/40 23,400,000 23,400,000
California State Economic
Recovery, Ser C-11, GO, LOC BNP
Paribas (A) (B) (C)
0.380%, 07/01/23 11,000,000 11,000,000
California State Health Facilities
Financing Authority, (A) (B) (C)
Adventist Health, Ser B, RB,
LOC Bank of America N.A.
0.060%, 09/01/28 6,300,000 6,300,000
Catholic Healthcare, Ser H, RB,
LOC Citibank N.A.
0.070%, 07/01/33 3,200,000 3,200,000
Ser B, RB, LOC JPMorgan
Chase Bank
0.050%, 10/01/40 1,100,000 1,100,000
California State, (A) (B) (C)
Kindergarten,
Ser B-1, GO, LOC Citibank N.A.
0.040%, 05/01/34 12,100,000 12,100,000
Ser B-2, GO, LOC Citibank N.A.
0.040%, 05/01/34 9,100,000 9,100,000
Ser B-3, GO, LOC Citibank N.A
0.030%, 05/01/34 3,000,000 3,000,000
Ser B-4, GO, LOC Citibank N.A.
0.040%, 05/01/34 6,100,000 6,100,000
Ser B, Sub-Ser B-6, GO, LOC KBC
Bank NV
0.400%, 05/01/40 1,600,000 1,600,000
California State, Educational
Facilities Authority, California
Institute of Technology, RB,
Institute Guaranteed (A) (B)
0.050%, 01/01/24 19,000,000 19,000,000
California State, Housing Finance
Agency, Multi-Family Housing,
Ser B, RB, FNMA Insured (A) (B) (C)
0.050%, 02/01/35 9,900,000 9,900,000
California State, RB
2.000%, 06/26/12 24,400,000 24,555,567
The accompanying notes are an integral part of the financial statements.
6 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
CALIFORNIA TAX-FREE MONEY MARKET FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
California Statewide, Communities
Development Authority, (A) (B) (C)
Redlands Community Hospital,
Ser B, RB, LOC JPMorgan
Chase Bank
0.040%, 04/01/29 $ 1,000,000 $ 1,000,000
Westgate Pasadena
Ser G, RB, AMT, LOC Bank of
America N.A.
0.090%, 04/01/42 1,820,000 1,820,000
Chino Basin Regional Financing
Authority, Inland Empire
Utilities, Ser B, RB
LOC Lloyds TSB Bank (A) (B) (C)
0.060%, 06/01/32 17,595,000 17,595,000
Contra Costa County, Multi-Family
Mortgage Revenue, RB, FNMA
Insured (A) (B) (C)
0.060%, 11/15/22 7,600,000 7,600,000
Eastern Municipal Water District,
Water & Sewer, Ser A, COP, SPA
Wells Fargo Bank N.A. (A) (B) (C)
0.040%, 07/01/30 18,795,000 18,795,000
Irvine, Improvement Bond Act 1915,
Special Assessment, (A) (B) (C)
Assessment District 94-13,
LOC State Street Bank & Trust Co.
0.060%, 09/02/22 500,000 500,000
Irvine, Ranch Water District,
Consolidated Improvement District,
GO, Ser A
LOC U.S. Bank N.A. (A) (B) (C)
0.020%, 10/01/41 4,000,000 4,000,000
Livermore, COP, Capital Projects,
LOC U.S. Bank N.A. (A) (B) (C)
0.060%, 10/01/30 4,715,000 4,715,000
Livermore, Multi-Family Housing
Authority, Mortgage Portola, RB,
AMT, FHLMC Insured (A) (B) (C)
0.080%, 05/01/19 375,000 375,000
Los Angeles County Housing Authority,
Multi-Family Housing Authority,
Malibu Meadows II, Ser C, RB,
FNMA Insured (A) (B) (C)
0.060%, 04/15/28 7,000,000 7,000,000
Los Angeles County, TRAN,
2.500%, 04/30/12 5,000,000 5,026,290
Los Angeles County, TRAN, Ser C
2.500%, 06/29/12 5,000,000 5,042,571
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
Los Angeles, Department of Water &
Power, Waterworks Revenue,
Sub-Ser B-4, RB, SPA Wells
Fargo Bank N.A. (A) (B) (C)
0.050%, 07/01/35 $11,900,000 $ 11,900,000
Los Angeles, Multi-Family Housing
Authority, Fountain Park Phase II,
Ser B, RB, FNMA Insured (A) (B) (C)
0.050%, 03/15/34 1,000,000 1,000,000
Manhattan Beach, COP, LOC Bank of
America N.A. (A) (B) (C)
0.120%, 08/01/32 1,000,000 1,000,000
Metropolitan, Water District of
Southern California, (A) (B) (C)
Waterworks Revenue, Ser B, RB,
SPA Landesbank Hessen
0.060%, 07/01/28 16,000,000 15,999,475
Waterworks Revenue, Ser C, RB,
SPA Landesbank Hessen
0.090%, 07/01/28 23,100,000 23,100,000
Orange County, Apartment
Development Revenue, WLCO LF
Partners, Ser G-1, RB, FNMA
Insured (A) (B) (C)
0.060%, 11/15/28 8,000,000 8,000,000
Pittsburg, Public Financing Authority,
RB, LOC Bank of the West (A) (B) (C)
0.450%, 06/01/35 11,750,000 11,750,000
Riverside County, Public Facilities,
Ser B, COP, LOC State Street Bank
& Trust Co. (A) (B) (C)
0.060%, 12/01/15 1,950,000 1,950,000
Sacramento County, Sanitation District,
Financing Authority, Subordinate
Lien, Ser E, RB, LOC U.S.
Bank N.A. (A) (B) (C)
0.050%, 12/01/40 5,200,000 5,200,000
San Diego County, Regional Transportation
Commission, Limited Tax,
Ser B, RB, (A) (B) (C)
SPA JPMorgan Chase Bank
0.040%, 04/01/38 4,200,000 4,200,000
San Francisco City & County, (A) (B) (C)
Community Facilities District No. 4, RB
LOC Bank of America N.A.
0.080%, 08/01/32 3,140,000 3,140,000
Finance Corporation Lease,
Moscone Center,
Ser 2008-2, RB, LOC State Street
Bank & Trust Co.
0.040%, 04/01/30 5,430,000 5,430,000
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 7
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
CALIFORNIA TAX-FREE MONEY MARKET FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
CALIFORNIA - (CONTINUED)
San Jose, Redevelopment Agency,
Merged Area Redevelopment Project,
Ser B, RB LOC JPMorgan Chase
Bank (A) (B) (C)
0.050%, 08/01/32 $ 2,100,000 $ 2,100,000
San Rafael Redevelopment Agency,
Fairfax Standard Apartments, Ser A, RB,
LOC Citibank N.A. (A) (B) (C)
0.110%, 09/01/31 500,000 500,000
Santa Clara County, El Camino
Hospital District Lease Authority,
Valley Medical Center Project,
Ser A, RB, LOC State Street Bank &
Trust Co. (A) (B) (C)
0.090%, 08/01/15 350,000 350,000
Southern California, Public Power
Authority, Electric Power and Light
Revenue, Magnolia Power Project,
Ser A, RB, LOC US Bank N.A. (A) (B) (C)
0.050%, 07/01/36 12,850,000 12,850,000
Torrance, Torrance Memorial Medical
Center, Ser B, RB, LOC Citibank
N.A. (A) (B) (C)
0.070%, 09/01/45 2,000,000 2,000,000
Tustin Unified School District
Community Facility District
NO 07-1 (A) (B) (C)
LOC Bank of America, N.A.
0.060%, 09/01/50 9,700,000 9,700,000
Vallejo, Multi-Family Housing
Authority, RB, FNMA Insured (A) (B) (C)
0.070%, 05/15/22 4,000,000 4,000,000
Vallejo, Water Revenue, Ser A, RB,
LOC JPMorgan Chase Bank (A) (B) (C)
0.090%, 06/01/31 14,700,000 14,700,000
Whittier, Healthcare Facilities,
Presbyterian Intercommunity, Ser B,
RB, LOC U.S. Bank N.A. (A) (B) (C)
0.040%, 06/01/36 2,800,000 2,800,000
-------------
446,488,903
-------------
NORTH DAKOTA - 2.0%
North Dakota Housing Finance
Agency, Home Mortgage, Ser B, RB,
SPA KBC Bank N.A. (A) (B) (C)
1.500%, 07/01/34 10,000,000 10,000,000
OREGON - 1.6%
State of Oregon Housing &
Community Services Department,
Single Family Housing, Ser E, RB,
AMT, SPA KBC Bank N.A. (A) (B) (C)
1.500%, 07/01/38 8,000,000 8,000,000
--------------------------------------------------------------------------------
Description Par/Shares Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MUNICIPAL BONDS - (CONTINUED)
--------------------------------------------------------------------------------
PUERTO RICO - 0.4%
Puerto Rico Commonwealth,
Public Improvement, Series C-5-2,
RB, AGM Insured,
LOC Barclays Bank PLC (A) (B) (C)
0.080%, 07/01/20 $ 2,000,000 $ 2,000,000
TEXAS - 3.1%
Dallas Texas Area Rapid Trans
TECP, RB SPA Bank of America (A)
0.130%, 02/06/12 15,000,000 15,000,000
WISCONSIN - 2.1%
Wisconsin Housing & Economic
Development Authority Ser C, RB,
AMT, SPA BNP Paribas (A) (C)
1.300%, 09/01/23 10,500,000 10,500,000
TOTAL MUNICIPAL BONDS
(Cost $491,988,903) 491,988,903
-------------
--------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANIES - 0.0%
--------------------------------------------------------------------------------
BlackRock Liquidity Funds,
California Money Fund 186,264 186,264
Goldman Sachs Institutional Liquid
Assets Tax-Exempt
California Portfolio 6,450 6,450
-------------
TOTAL REGISTERED INVESTMENT COMPANIES
(Cost $192,714) 192,714
-------------
TOTAL INVESTMENTS - 99.9%
(Cost $492,181,617) + 492,181,617
-------------
OTHER ASSETS & LIABILITIES, NET - 0.1% 352,732
-------------
NET ASSETS - 100.0% $ 492,534,349
=============
--------------------------------------------------------------------------------
+ AT JANUARY 31, 2012, COST IS IDENTICAL FOR BOOK AND FEDERAL INCOME TAX
PURPOSES.
(A) FLOATING RATE SECURITY. RATE DISCLOSED IS AS OF JANUARY 31, 2012.
(B) PUT AND DEMAND FEATURE - VARIABLE RATE DEMAND NOTES ARE PAYABLE UPON
DEMAND. PUT BONDS AND NOTES HAVE DEMAND FEATURES THAT ALLOW THE HOLDER TO
REDEEM THE ISSUE AT SPECIFIED DATES BEFORE MATURITY. THE DATE REPORTED IS
THE FINAL MATURITY, NOT THE NEXT RESET OR PUT DATE. THE INTEREST RATE
SHOWN REFLECTS THE RATE IN EFFECT ON JANUARY 31, 2012.
(C) SECURITIES ARE HELD IN CONJUNCTION WITH A GUARANTEE/LETTER OF CREDIT
AND/OR A LIQUIDITY AGREEMENT BY A MAJOR COMMERCIAL BANK OR FINANCIAL
INSTITUTION.
ABAG - ASSOCIATION OF BAY AREA GOVERNMENTS
AGM - ASSURED GUARANTY MUNICIPAL CORPORATION
AMT - ALTERNATIVE MINIMUM TAX
The accompanying notes are an integral part of the financial statements.
8 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
CALIFORNIA TAX-FREE MONEY MARKET FUND (CONCLUDED)
COP - CERTIFICATES OF PARTICIPATION
FHLMC - FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA - FEDERAL NATIONAL MORTGAGE ASSOCIATION
GO - GENERAL OBLIGATION
LOC - LETTER OF CREDIT
PLC - PUBLIC LIABILITY COMPANY
RB - REVENUE BOND
SER - SERIES
SPA - STANDBY PURCHASE AGREEMENT
TECP - TAX-EXEMPT COMMERCIAL PAPER
TRAN - TAX AND REVENUE ANTICIPATION NOTE
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------- ------------- ------------- -------------
Municipal Bonds $ 491,988,903 $ -- $ 491,988,903 $ --
Registered Investment Companies 192,714 192,714 -- --
------------- ------------- ------------- -------------
Total: $ 492,181,617 $ 192,714 $ 491,988,903 $ --
============= ============= ============= =============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 9
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
DIVERSIFIED MONEY MARKET FUND
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMERCIAL PAPER - DISCOUNTED* - 31.3%
--------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - GOVERNMENT - 2.1% (A)
Govco LLC
0.400%, 03/20/12 $ 50,000,000 $ 49,973,333
-------------
TOTAL ASSET-BACKED SECURITIES - GOVERNMENT
(Cost $49,973,333) 49,973,333
-------------
ASSET-BACKED SECURITIES - CREDIT CARD - 3.7% (A)
White Point Funding Inc.
0.300%, 02/01/12 26,339,000 26,339,000
0.530%, 04/04/12 62,110,000 62,052,393
-------------
TOTAL ASSET-BACKED SECURITIES - CREDIT CARD
(Cost $88,391,393) 88,391,393
-------------
ASSET-BACKED SECURITIES - TRADE RECEIVABLES - 13.9% (A)
Autobahn Funding Co. LLC
0.200%, 02/01/12 52,000,000 52,000,000
0.520%, 03/05/12 50,000,000 49,976,167
Mont Blanc Capital Corp.
0.370%, 02/09/12 50,000,000 49,995,889
Regency Markets No 1 LLC
0.220%, 02/21/12 55,500,000 55,493,217
Sydney Capital Corp.
0.350%, 03/15/12 70,000,000 69,970,736
Thunder Bay Funding LLC
0.210%, 04/16/12 50,000,000 49,978,125
-------------
TOTAL ASSET-BACKED SECURITIES -
TRADE RECEIVABLES
(Cost $327,414,134) 327,414,134
-------------
BANKING - 8.6%
Louis Dreyfus Commodities LOC:
Barclays Bank
0.470%, 02/01/12 82,000,000 82,000,000
Silver Tower U.S. Funding
0.630%, 02/01/12 (A) 100,000,000 100,000,000
Working Capital Management
0.320%, 02/06/12 (A) 20,000,000 19,999,111
-------------
TOTAL BANKING
(Cost $201,999,111) 201,999,111
-------------
MULTIPLE INDUSTRY - 3.0%
General Electric Co.
0.060%, 02/07/12 70,000,000 69,999,300
-------------
TOTAL MULTIPLE INDUSTRY
(Cost $69,999,300) 69,999,300
-------------
TOTAL COMMERCIAL PAPER - DISCOUNTED
(Cost $737,777,271) 737,777,271
-------------
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - YANKEE - 29.4%
--------------------------------------------------------------------------------
Bank of Nova Scotia Houston
0.545%, 01/04/13 (B) $ 70,000,000 $ 70,000,000
Barclays Bank PLC NY
0.554%, 03/22/12 (B) 100,000,000 100,000,000
Canadian Imperial Bank of
Commerce NY
0.340%, 08/29/12 (B) 75,000,000 74,997,809
Mizuho Corporate Bank NY
0.500%, 04/05/12 70,000,000 70,000,000
National Australia Bank New York
0.445%, 04/13/12 (B) 50,000,000 50,000,000
Norinchukin Bank NY
0.410%, 03/20/12 35,000,000 35,000,000
0.400%, 03/23/12 35,000,000 35,000,000
Sumitomo Mitsui Banking NY
0.350%, 09/07/12 (B) (C) 100,000,000 100,000,000
Svenska Handelsbanken NY
0.405%, 02/01/12 37,000,000 37,000,000
UBS AG Stamford CT
0.360%, 03/23/12 70,000,000 70,000,000
Westpac Banking Corp. NY
0.395%, 08/08/12 (B) 50,000,000 50,000,000
-------------
TOTAL CERTIFICATES OF DEPOSIT - YANKEE
(Cost $691,997,809) 691,997,809
-------------
--------------------------------------------------------------------------------
CORPORATE OBLIGATION - 6.4%
--------------------------------------------------------------------------------
BANKING - 6.4% (A) (D)
Bank of Montreal Chicago, MTN
0.855%, 02/04/13 150,000,000 150,000,000
-------------
TOTAL CORPORATE OBLIGATION
(Cost $150,000,000) 150,000,000
-------------
--------------------------------------------------------------------------------
FOREIGN CORPORATE OBLIGATION - 4.2%
--------------------------------------------------------------------------------
BANKING - 4.2% (A) (D) (E)
Credit Agricole, MTN
0.860%, 07/20/12 100,000,000 100,000,000
-------------
TOTAL FOREIGN CORPORATE OBLIGATION
(Cost $100,000,000) 100,000,000
-------------
--------------------------------------------------------------------------------
FOREIGN BANK NOTE - 2.1%
--------------------------------------------------------------------------------
BANKING - 2.1% (A) (D)
Westpac Banking Corp.
0.375%, 02/01/13 50,000,000 50,000,000
-------------
TOTAL FOREIGN BANK NOTE
(Cost $50,000,000) 50,000,000
-------------
The accompanying notes are an integral part of the financial statements.
10 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
DIVERSIFIED MONEY MARKET FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATION - 1.0%
--------------------------------------------------------------------------------
FNMA
0.286%, 08/12/13 (B) $ 25,000,000 $ 24,988,386
--------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION
(Cost $24,988,386) 24,988,386
--------------
-------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES - 0.3%
-------------------------------------------------------------------------------
BANKING - 0.2% (C)
Washington State, Housing Finance
Commission, Multi-Family Housing,
The Lodge at Eagle Ridge, Ser B, RB,
LOC: Bank of America
0.190%, 08/01/41 3,425,000 3,425,000
--------------
TOTAL BANKING
(Cost $3,425,000) 3,425,000
--------------
U.S. GOVERNMENT - 0.1% (C) (F)
Winston Salem, NC, COP, SPA:
Branch Banking & Trust
0.270%, 11/01/12 3,000,000 3,000,000
--------------
TOTAL U.S. GOVERNMENT
(Cost $3,000,000) 3,000,000
--------------
TOTAL VARIABLE RATE DEMAND NOTES
(Cost $6,425,000) 6,425,000
--------------
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 25.3%
--------------------------------------------------------------------------------
Barclays Capital, Inc.
0.180%, dated 01/31/12,
matures on 02/01/12,
repurchase price $50,000,250
(collateralized by a U.S. Treasury
obligation, par value $51,029,100,
0.125%, 08/31/13, total market
value $51,000,085) 50,000,000 50,000,000
Credit Suisse Securities (USA)
0.180%, dated 01/31/12,
matures on 02/01/12,
repurchase price $74,714,357
(collateralized by a U.S. Treasury
obligation, par value $76,330,000,
0.125%, 12/31/13, total market
value $76,212,156) 74,713,983 74,713,983
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - (CONTINUED)
--------------------------------------------------------------------------------
Deutsche Bank Securities
0.200%, dated 01/31/12,
matures on 02/01/12,
repurchase price $344,001,911
(collateralized by two U.S. Treasury
obligations, ranging in par value from
$1,397,400 - $295,587,700,
2.625%-3.625%, 08/15/20-
02/15/21, total market
value $350,880,027) $ 344,000,000 $ 344,000,000
Goldman, Sachs & Co.
0.120%, dated 01/31/12,
matures on 02/01/12,
repurchase price $39,000,130
(collateralized by a U.S. Treasury
obligation, par value $18,064,500,
3.875%, 04/15/29, total market
value $39,780,047) 39,000,000 39,000,000
Merrill Lynch Fenner Pierce & Smith
0.150%, dated 01/31/12,
matures on 02/01/12,
repurchase price $88,000,367
(collateralized by a U.S.
Treasury obligation, par value
$89,179,000, 0.500%, 10/15/13,
total market value $89,760,038) 88,000,000 88,000,000
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $595,713,983)
595,713,983
--------------
TOTAL INVESTMENTS - 100.0%
(Cost $2,356,902,449) +
2,356,902,449
--------------
OTHER ASSETS & LIABILITIES, NET - 0.0% (293,997)
--------------
NET ASSETS - 100.0% $2,356,608,452
==============
--------------------------------------------------------------------------------
* RATE SHOWN REPRESENTS THE BOND EQUIVALENT YIELD TO MATURITY AT PURCHASE.
+ AT JANUARY 31, 2012, COST IS IDENTICAL FOR BOOK AND FEDERAL INCOME TAX
PURPOSES.
(A) SECURITIES SOLD WITHIN THE TERMS OF A PRIVATE PLACEMENT MEMORANDUM, EXEMPT
FROM REGISTRATION UNDER SECTION 3(A), 4(2) OR 144A OF THE SECURITIES ACT
OF 1933, AS AMENDED, AND MAY BE SOLD ONLY TO THE DEALERS IN THAT PROGRAM
OR OTHER "ACCREDITED INVESTORS". THE VALUE OF THESE SECURITIES AS OF
JANUARY 31, 2012 WAS $885,777,971 AND REPRESENTED 37.6% OF NET ASSETS.
(B) VARIABLE RATE SECURITY WHOSE INTEREST RATE IS RESET PERIODICALLY BASED ON
AN INDEX. THE RATE REFLECTED IS THE RATE IN EFFECT ON JANUARY 31, 2012.
THE DATE REPORTED IS THE FINAL MATURITY.
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 11
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
DIVERSIFIED MONEY MARKET FUND (CONCLUDED)
(C) DEMAND FEATURE - THE ADJUSTABLE RATE REFLECTED IS THE RATE IN EFFECT ON
JANUARY 31, 2012. THE DATE REPORTED IS THE FINAL MATURITY, NOT THE DATE ON
WHICH PRINCIPAL COULD BE RECOVERED.
(D) VARIABLE RATE/EXTENDABLE SECURITY - THE RATE REFLECTED IS THE RATE IN
EFFECT ON JANUARY 31, 2012. THE MATURITY DATE REFLECTS THE NEXT DATE ON
WHICH THE PRINCIPAL CAN BE RECOVERED.
(E) SECURITY CONSIDERED ILLIQUID. THE TOTAL VALUE OF SUCH SECURITIES AS OF
JANUARY 31, 2012 WAS $100,000,000 AND REPRESENTED 4.2% OF NET ASSETS.
(F) SECURITY IS ESCROWED TO MATURITY IN U.S. TREASURIES.
COP - CERTIFICATES OF PARTICIPATION
CT - CONNECTICUT
FNMA - FEDERAL NATIONAL MORTGAGE ASSOCIATION
LLC - LIMITED LIABILITY COMPANY
LOC - LETTER OF CREDIT
MTN - MEDIUM TERM NOTE
NC - NORTH CAROLINA
NY - NEW YORK
PLC - PUBLIC LIABILITY COMPANY
RB - REVENUE BOND
SER - SERIES
SPA - STANDBY PURCHASE AGREEMENT
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
--------------- --------- -------------- ------------
Investments in Securities * $ 2,356,902,449 $ -- $2,356,902,449 $ --
=============== ========= ============== ============
* See schedule of investments detail for security type breakout.
The accompanying notes are an integral part of the financial statements.
12 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
TREASURY PLUS MONEY MARKET FUND
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATION - 9.4%
--------------------------------------------------------------------------------
FFCB
0.273%, 11/27/12 (A) $ 5,000,000 $ 5,000,000
FNMA
0.286%, 08/12/13 (A) 7,000,000 6,996,748
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION
(Cost $11,996,748) 11,996,748
------------
--------------------------------------------------------------------------------
U.S. GOVERNMENT GUARANTEED OBLIGATIONS - 6.3%
--------------------------------------------------------------------------------
Straight - A Funding, Series I, FFBLL
0.192%, 04/18/12 *(B) 8,000,000 7,996,749
------------
TOTAL U.S. GOVERNMENT GUARANTEED OBLIGATIONS
(Cost $7,996,749) 7,996,749
------------
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 84.3%
--------------------------------------------------------------------------------
Barclays Capital Inc.
0.180%, dated 01/31/12,
matures on 02/01/12, repurchase
price $31,000,155 (collateralized
by a U.S. Treasury obligation,
par value $31,330,100, 0.625%,
07/15/14, total market
value $31,620,051) 31,000,000 31,000,000
Credit Suisse Securities (USA)
0.180%, dated 01/31/12,
matures on 02/01/12, repurchase
price $14,039,638 (collateralized
by a U.S. Treasury obligation,
par value $13,850,000, 3.125%,
11/15/41, total market
value $14,322,431) 14,039,568 14,039,568
Deutsche Bank Securities
0.200%, dated 01/31/12,
matures on 02/01/12, repurchase
price $31,000,172 (collateralized
by a U.S. Treasury obligation,
par value $31,042,500, 2.000%,
11/15/21, total market
value $31,620,070) 31,000,000 31,000,000
--------------------------------------------------------------------------------
Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - (CONTINUED)
--------------------------------------------------------------------------------
Merrill Lynch Fenner Pierce & Smith
0.150%, dated 01/31/12, matures
on 02/01/12, repurchase
price $31,000,129 (collateralized
by a U.S. Treasury obligation,
par value $31,632,100, 0.000%,
07/19/12, total market value
$31,620,080) $31,000,000 $ 31,000,000
------------
TOTAL REPURCHASE AGREEMENT
(Cost $107,039,568) 107,039,568
------------
TOTAL INVESTMENTS - 100.0%
(Cost $127,033,065) + 127,033,065
------------
OTHER ASSETS & LIABILITIES, NET - 0.0% 3,677
------------
NET ASSETS - 100.0% $127,036,742
============
--------------------------------------------------------------------------------
* RATE SHOWN REPRESENTS THE MONEY MARKET EQUIVALENT YIELD TO MATURITY AT
PURCHASE.
+ AT JANUARY 31, 2012, COST IS IDENTICAL FOR BOOK AND FEDERAL INCOME TAX
PURPOSES.
(A) VARIABLE RATE SECURITY WHOSE INTEREST RATE IS RESET PERIODICALLY BASED ON
AN INDEX. THE RATE REFLECTED IS THE RATE IN EFFECT ON JANUARY 31, 2012.
THE DATE REPORTED IS THE FINAL MATURITY.
(B) SECURITY SOLD WITHIN THE TERMS OF A PRIVATE PLACEMENT MEMORANDUM, EXEMPT
FROM REGISTRATION UNDER SECTION 3(A), 4(2) OR RULE 144A OF THE SECURITIES
ACT OF 1933, AS AMENDED, AND MAY BE SOLD ONLY TO THE DEALERS IN THAT
PROGRAM OR OTHER "ACCREDITED INVESTORS". THE VALUE OF THESE SECURITIES AS
OF JANUARY 31, 2012 WAS $7,996,749 AND REPRESENTED 6.3% OF NET ASSETS.
FFBLL - FEDERAL FINANCING BANK LIQUIDITY LOAN
FFCB - FEDERAL FARM CREDIT BANK
FNMA - FEDERAL NATIONAL MORTGAGE ASSOCIATION
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------- ------- ------------- ------------
Investments in Securities * $ 127,033,065 $ -- $ 127,033,065 $ --
============= ======= ============= ============
* See schedule of investments detail for security type breakout.
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 13
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
U.S. GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATION - 16.5%
--------------------------------------------------------------------------------
FFCB
0.273%, 11/27/12 (A) $50,000,000 $ 50,000,000
FHLMC
0.245%, 06/03/13 (A) 50,000,000 49,973,037
FNMA
0.286%, 08/12/13 (A) 75,000,000 74,965,157
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION
(Cost $174,938,194) 174,938,194
------------
--------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES - 14.1%
--------------------------------------------------------------------------------
California, Milpitas Multi-Family
Housing Revenue Crossing, Ser A, RB
Guarantee: FNMA (B)
0.120%, 08/15/33 4,800,000 4,800,000
California, Sacramento County,
Multi-Family Housing Development
Authority, Deer Park Apartments,
Ser A, RB
Guarantee: FNMA (B)
0.170%, 07/15/35 1,150,000 1,150,000
California, San Francisco, City s
County Redevelopment, Ser D, RB
Guarantee: FNMA (B)
0.160%, 06/15/34 26,050,000 26,050,000
California, Simi Valley, Multi-Family
Housing Revenue, Parker Ranch,
Ser A, RB
Guarantee: FNMA (B)
0.180%, 07/15/36 700,000 700,000
California, Statewide Community
Development Authority, Palms
Apartments, Ser C, RB
Guarantee: FNMA (B)
0.150%, 05/15/35 3,400,000 3,400,000
New York City Housing Development,
Multi-Family Mortgage Revenue,
Pearl Street Development, Ser B, RB
Guarantee: FNMA (B)
0.120%, 10/15/41 14,225,000 14,225,000
New York City Housing Development,
Multi-Family Rent Housing
Revenue, (B)
Gold Street, Ser B, RB
Guarantee: FNMA
0.120%, 04/15/36 2,470,000 2,470,000
Nicole, Ser B, RB
Guarantee: FNMA
0.160%, 11/15/35 4,570,000 4,570,000
West Street, Ser B, RB
Guarantee: FNMA
0.120%, 03/15/36 7,100,000 7,100,000
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES - (CONTINUED)
--------------------------------------------------------------------------------
Westport Development, Ser B, RB
Guarantee: FNMA
0.160%, 06/15/34 $ 6,800,000 $ 6,800,000
New York State, Dormitory Authority
Revenue, Ser B, RB
Guarantee: FNMA (B)
0.160%, 11/15/36 17,325,000 17,325,000
New York State, Housing Finance
Agency Revenue, (B)
11th Avenue Housing, Ser B, RB
Guarantee: FNMA
0.120%, 05/15/41 5,100,000 5,100,000
38th Street, Ser B, RB
Guarantee: FNMA
0.140%, 05/15/33 9,500,000 9,500,000
Biltmore Tower Housing, Ser B, RB
Guarantee: FNMA
0.120%, 05/15/34 1,020,000 1,020,000
North End, Ser B, RB
Guarantee: FNMA
0.120%, 11/15/36 2,500,000 2,500,000
Ser B, RB
Guarantee: FNMA
0.120%, 05/15/33 12,800,000 12,800,000
Tower 31 Housing, Ser A, RB
Guarantee: FHLMC
0.120%, 11/01/36 2,900,000 2,900,000
West 33rd Street, Ser B, RB
Guarantee: FNMA
0.160%, 11/15/36 4,600,000 4,600,000
Pennsylvania, Montgomery County,
Redevelopment Authority, Kingswood
Apartments Project, Ser A, RB
Guarantee: FNMA (B)
0.200%, 08/15/31 5,605,000 5,605,000
Virginia, Chesapeake, Redevelopment &
Housing Authority, Multi-Family
Housing Revenue, Alta Great Bridge,
Ser A, RB
Guarantee: FNMA (B)
0.200%, 01/15/41 1,625,000 1,625,000
Washington State Housing Finance
Commission, Multi-Family Housing
Revenue, (B)
Ballard Landmark, Ser B, RB
Guarantee: FNMA
0.190%, 12/15/41 3,510,000 3,510,000
Bridgewood Project, Ser B, RB
Guarantee: FNMA
0.170%, 09/01/34 3,135,000 3,135,000
Highland Park Apartments, Ser B, RB
Guarantee: FNMA
The accompanying notes are an integral part of the financial statements.
14 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
U.S. GOVERNMENT MONEY MARKET FUND (CONCLUDED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES - (CONTINUED)
--------------------------------------------------------------------------------
0.170%, 07/15/38 $ 1,650,000 $ 1,650,000
Pinehurst Apartments Project,
Ser B, RB
Guarantee: FNMA
0.170%, 03/15/39 1,465,000 1,465,000
Ranier Court Project, Ser B, RB
Guarantee: FNMA
0.150%, 12/15/36 3,310,000 3,310,000
Rolling Hills Project, Ser B, RB
Guarantee: FNMA
0.170%, 06/15/37 2,020,000 2,020,000
--------------
TOTAL VARIABLE RATE DEMAND NOTES
(Cost $149,330,000) 149,330,000
--------------
--------------------------------------------------------------------------------
U.S. GOVERNMENT GUARANTEED OBLIGATIONS - 5.3%
--------------------------------------------------------------------------------
Citibank N.A., Guarantee: FDIC (A)
0.457%, 11/15/12 12,000,000 12,033,029
Straight - A Funding, Series I, FFBLL * (C)
0.193%, 04/18/12 44,311,000 44,292,993
--------------
TOTAL U.S. GOVERNMENT GUARANTEED OBLIGATIONS
(Cost $56,326,022) 56,326,022
--------------
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 64.1%
--------------------------------------------------------------------------------
Barclays Capital
0.180%, dated 01/31/12,
matures on 02/01/12,
repurchase price $120,874,919
(collateralized by a U.S. Treasury
obligation, par value $118,652,200,
1.500%, 07/31/16, total market
value $123,286,755) 120,869,279 120,869,279
Deutsche Bank Securities
0.220%, dated 01/31/12,
matures on 02/01/12,
repurchase price $265,001,619
(collateralized by three Federal
National Mortgage Association
obligations, ranging in par value
from $52,749,000 - $77,825,000,
0.60% - 1.00%, 08/23/13 - 06/30/15
and a Federal Home Loan Bank
obligation, par value $85,500,000,
4.00%, 11/17/31, total market
value $270,300,400) 265,000,000 265,000,000
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - (CONTINUED)
--------------------------------------------------------------------------------
Goldman Sachs
0.120%, dated 01/31/12,
matures on 02/01/12,
repurchase price $60,000,200
(collateralized by a U.S. Treasury
obligation, par value $27,791,600,
3.875%, 04/15/29, total market
value $61,200,208) $ 60,000,000 $ 60,000,000
Goldman Sachs
0.200%, dated 01/31/12,
matures on 02/01/12,
repurchase price $53,000,294
(collateralized by a U.S. agency
obligation, par value $43,209,200,
1.625%, 01/15/18, total market
value $54,060,116) 53,000,000 53,000,000
Merrill Lynch, Fenner Pierce & Smith
0.150%, dated 01/31/12,
matures on 02/01/12,
repurchase price $181,000,754
(collateralized by two U.S.
Treasury obligations, ranging in
par value from $44,343,400 -
$110,989,000, 0.000% - 4.250%,
01/10/13 - 11/15/40, total market
value $184,620,097) 181,000,000 181,000,000
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $679,869,279) 679,869,279
--------------
TOTAL INVESTMENTS - 100.0%
(Cost $1,060,463,495) + 1,060,463,495
--------------
OTHER ASSETS & LIABILITIES, NET - 0.0% (20,127)
--------------
NET ASSETS - 100.0% $1,060,443,368
==============
--------------------------------------------------------------------------------
* RATE SHOWN REPRESENTS THE MONEY MARKET EQUD TO MATURITY AT PURCHASE.
+ AT JANUARY 31, 2012, COST IS IDENTICAL FOR BOOK AND FEDERAL INCOME TAX
PURPOSES.
(A) VARIABLE RATE SECURITY WHOSE INTEREST RATE IS RESET PERIODICALLY BASED ON
AN INDEX. THE RATE REFLECTED IS THE RATE IN EFFECT ON JANUARY 31, 2012.
THE DATE REPORTED IS THE FINAL MATURITY.
(B) DEMAND FEATURE - RATE SHOWN IS AS OF REPORT DATE AND MATURITIES SHOWN ARE
THE FINAL MATURITIES, NOT THE DATE ON WHICH PRINCIPAL COULD BE RECOVERED
THROUGH THE DEMAND FEATURE.
(C) SECURITIES SOLD WITHIN THE TERMS OF A PRIVATE PLACEMENT MEMORANDUM, EXEMPT
FROM REGISTRATION UNDER SECTION 3A-4, 4(2) OR 144A OF THE SECURITIES ACT
OF 1933, AS AMENDED, AND MAY BE SOLD ONLY TO THE DEALERS IN THAT PROGRAM
OR OTHER "ACCREDITED INVESTORS". THE TOTAL VALUE OF THIS SECURITY AS OF
JANUARY 31, 2012 WAS $44,292,993 AND REPRESENTED 4.2% OF NET ASSETS.
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 15
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
U.S. GOVERNMENT MONEY MARKET FUND (CONTINUED)
FDIC - FEDERAL DEPOSIT INSURANCE CORPORATION
FFBLL - FEDERAL FINANCING BANK LIQUIDITY LOAN
FFCB - FEDERAL FARM CREDIT BANK
FHLMC - FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA - FEDERAL NATIONAL MORTGAGE ASSOCIATION
RB - REVENUE BOND
SER - SERIES
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
--------------- --------- -------------- ------------
Investments in Securities** $ 1,060,463,495 $ -- $1,060,463,495 $ --
=============== ========= ============== ============
** See schedule of investments detail for security type breakout.
The accompanying notes are an integral part of the financial statements.
16 HIGHMARK(R) FUNDS
SCHEDULE OF INVESTMENTS
JANUARY 31, 2012 (UNAUDITED)
100% U.S. TREASURY MONEY MARKET FUND (CONTINUED)
--------------------------------------------------------------------------------
Description Par Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
U.S. TREASURY BILLS* - 100.0%
--------------------------------------------------------------------------------
U.S. Treasury Bills
0.040%, 02/02/12 $ 37,592,000 $ 37,591,959
0.040%, 02/09/12 102,203,000 102,202,108
0.005%, 02/16/12 92,905,000 92,904,806
0.010%, 02/23/12 50,000,000 49,999,694
0.005%, 03/08/12 127,338,000 127,337,414
0.004%, 03/22/12 181,760,000 181,758,981
0.006%, 03/29/12 10,456,000 10,455,901
-------------
TOTAL U.S. TREASURY BILLS
(Cost $602,250,863) 602,250,863
-------------
TOTAL INVESTMENTS - 100.0%
(Cost $602,250,863) + 602,250,863
-------------
OTHER ASSETS & LIABILITIES, NET - 0.0%
71,256
-------------
NET ASSETS - 100.0% $ 602,322,119
=============
--------------------------------------------------------------------------------
* RATE SHOWN REPRESENTS THE BOND EQUIVALENT YIELD TO MATURITY AT PURCHASE.
+ AT JANUARY 31, 2012, COST IS IDENTICAL FOR BOOK AND FEDERAL INCOME TAX
PURPOSES.
A summary of the inputs used to value the Fund's net assets as of January 31,
2012 is as follows (see Note 2 - significant accounting policies in the notes to
financial statements):
LEVEL 2 LEVEL 3
TOTAL FAIR LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
01/31/12 PRICE INPUTS INPUTS
------------- ------------- ------------- -------------
U.S. Treasury Bills $ 602,250,863 $ -- $ 602,250,863 $ --
============= ============= ============= =============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 17
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2012 (UNAUDITED)
CALIFORNIA U.S. 100% U.S.
TAX-FREE DIVERSIFIED TREASURY GOVERNMENT TREASURY
MONEY MONEY PLUS MONEY MONEY MONEY
MARKET MARKET MARKET MARKET MARKET
FUND FUND FUND FUND FUND
-------------- --------------- -------------- --------------- --------------
ASSETS:
Investments, at Value + ...................... $ 492,181,617 $ 1,761,188,466 $ 19,993,497 $ 380,594,216 $ 602,250,863
Repurchase Agreements, at Value + ............ -- 595,713,983 107,039,568 679,869,279 --
Cash ......................................... -- -- -- -- 154
Receivable for Fund Shares Sold .............. -- 69,522 -- 69,170 67,092
Accrued Income ............................... 427,244 545,258 1,827 49,859 --
Prepaid Expenses ............................. 26,271 118,792 20,228 80,809 39,104
Deferred Compensation ........................ 38,691 184,493 14,957 80,623 47,064
Due from Adviser, net ........................ -- -- 10,369 -- 36,876
-------------- --------------- -------------- --------------- --------------
TOTAL ASSETS .............................. 492,673,823 2,357,820,514 127,080,446 1,060,743,956 602,441,153
============== =============== ============== =============== ==============
LIABILITIES:
Payable for Fund Shares Redeemed ............. -- 219,124 -- 93,905 4,017
Income Distribution Payable .................. 2,017 28,884 402 3,379 814
Investment Adviser Fees Payable .............. 13,879 353,234 -- 45 --
Administration Fees Payable .................. 47,947 301,551 2,489 47,027 --
Chief Compliance Officer Fees Payable ........ 1,515 1,515 1,515 1,514 1,515
Custodian Fees Payable ....................... 2,650 12,638 1,025 5,523 3,224
Audit Fees Payable ........................... 16,238 22,268 15,744 19,294 18,695
Deferred Compensation Payable ................ 38,691 184,493 14,957 80,623 47,064
Shareholder Servicing Fees Payable ........... -- -- -- 228 --
Transfer Agent Fees Payable .................. 9,319 47,972 4,275 18,536 16,608
Printing Fees Payable ........................ 6,912 13,585 2,980 23,124 12,309
Trustees Fees Payable ........................ -- 16,641 317 -- 7,458
Accrued Distribution Fees .................... -- -- -- 37 --
Accrued Expenses and Other Payables .......... 306 10,157 -- 7,353 7,330
-------------- --------------- -------------- --------------- --------------
TOTAL LIABILITIES .......................... 139,474 1,212,062 43,704 300,588 119,034
-------------- --------------- -------------- --------------- --------------
NET ASSETS ............................... $ 492,534,349 $ 2,356,608,452 $ 127,036,742 $ 1,060,443,368 $ 602,322,119
============== =============== ============== =============== ==============
NET ASSETS:
Paid-in Capital (unlimited authorized - no
par value) ................................. $ 492,483,834 $ 2,356,749,873 $ 127,036,525 $ 1,060,445,045 $ 602,406,549
Undistributed Net Investment Income .......... 50,493 -- 175 -- --
Accumulated Net Realized Gain (Loss) on
Investments ................................ 22 (141,421) 42 (1,677) (84,430)
-------------- --------------- -------------- --------------- --------------
NET ASSETS ............................... $ 492,534,349 $ 2,356,608,452 $ 127,036,742 $ 1,060,443,368 $ 602,322,119
============== =============== ============== =============== ==============
+ Cost of Investments and Repurchase
Agreements ................................. $ 492,181,617 $ 2,356,902,449 $ 127,033,065 $ 1,060,463,495 $ 602,250,863
Amounts designated as "-" are either not applicable or less than $1.00.
The accompanying notes are an integral part of the financial statements.
18 HIGHMARK(R) FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2012
(UNAUDITED)
CALIFORNIA U.S. 100% U.S.
TAX-FREE DIVERSIFIED TREASURY GOVERNMENT TREASURY
MONEY MONEY PLUS MONEY MONEY MONEY
MARKET MARKET MARKET MARKET MARKET
FUND FUND FUND FUND FUND
-------------- --------------- ------------- -------------- -------------
FIDUCIARY SHARES:
Net Assets ................................... $ 234,922,765 $ 1,855,100,515 $ 121,380,924 $ 910,692,843 $ 403,063,699
Shares of beneficial interest outstanding .... 234,905,156 1,855,215,986 121,380,884 910,714,520 403,183,722
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE ..................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============== =============== ============= ============== =============
CLASS A SHARES:
Net Assets .................................... $ 240,859,234 $ 402,198,540 $ 5,655,817 $ 46,944,143 $ 95,193,030
Shares of beneficial interest outstanding ..... 240,833,928 402,219,308 5,655,815 46,945,793 95,223,228
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE ..................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============== =============== ============= ============== =============
CLASS B SHARES:
Net Assets .................................... $ N/A $ N/A $ N/A $ 51,499 $ N/A
Shares of beneficial interest outstanding ..... N/A N/A N/A 51,503 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE(A) .. $ N/A $ N/A $ N/A $ 1.00 $ N/A
============== =============== ============= ============== =============
CLASS C SHARES:
Net Assets .................................... $ N/A $ N/A $ N/A $ 654,799 $ N/A
Shares of beneficial interest outstanding ..... N/A N/A N/A 654,804 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE(A) .. $ N/A $ N/A $ N/A $ 1.00 $ N/A
============== =============== ============= ============== =============
CLASS S SHARES:
Net Assets .................................... $ 16,752,350 $ 99,309,397 $ 1 $ 102,100,084 $ 104,065,390
Shares of beneficial interest outstanding ..... 16,750,830 99,314,693 1 102,103,828 104,088,609
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE ..................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============== =============== ============= ============== =============
N/A Not Applicable
(A) Class B and Class C have contingent deferred sales charges (See Note 3 in
the notes to financial statements).
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 19
STATEMENTS OF OPERATIONS
FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED)
CALIFORNIA U.S. 100% U.S.
TAX-FREE DIVERSIFIED TREASURY GOVERNMENT TREASURY
MONEY MONEY PLUS MONEY MONEY MONEY
MARKET MARKET MARKET MARKET MARKET
FUND FUND FUND FUND FUND
------------ ------------- ------------ ------------ -------------
Interest Income ................................... $ 707,340 $ 5,068,577 $ 78,455 $ 768,363 $ 39,585
Dividend Income ................................... 55 -- -- -- --
------------ ------------- ------------ ------------ -------------
Total Investment Income ...................... 707,395 5,068,577 78,455 768,363 39,585
------------ ------------- ------------ ------------ -------------
Expenses:
Investment Adviser Fees ........................ 821,350 3,719,255 288,900 1,939,466 873,492
Shareholder Servicing Fees Fiduciary Shares .... 324,156 2,454,464 230,574 1,371,533 485,270
Shareholder Servicing Fees Class A Shares ...... 341,549 518,312 10,176 65,867 124,416
Shareholder Servicing Fees Class B Shares ...... -- -- -- 129 --
Administration Fees ............................ 410,503 1,856,410 143,676 968,426 435,952
Custodian Fees ................................. 17,111 77,485 6,019 40,405 18,198
Trustees Fees .................................. 14,927 83,994 6,109 34,902 21,552
Chief Compliance Officer Fees .................. 3,706 3,706 3,706 3,706 3,706
Distribution Fees Class A Shares ............... 341,549 518,312 10,176 65,867 124,416
Distribution Fees Class B Shares ............... -- -- -- 386 --
Distribution Fees Class C Shares ............... -- -- -- 1,198 --
Distribution Fees Class S Shares ............... 41,257 278,527 -- 392,246 260,091
Registration Fees .............................. 6,779 23,625 7,545 34,216 21,485
Transfer Agent Fees ............................ 23,512 100,353 9,648 56,639 31,158
Printing Fees .................................. 34,129 127,180 13,933 79,490 38,350
Audit Fees ..................................... 14,429 21,613 13,033 17,265 14,806
Legal Fees ..................................... 26,612 134,043 10,415 79,945 33,417
Miscellaneous Fees ............................. 21,551 65,281 18,816 42,385 28,512
------------ ------------- ------------ ------------ -------------
Total Expenses ............................... 2,443,120 9,982,560 772,726 5,194,071 2,514,821
------------ ------------- ------------ ------------ -------------
Less: Waivers and Reimbursements
Investment Adviser Fee Waiver ................ (696,060) (1,312,322) (288,717) (1,848,815) (873,492)
Shareholder Servicing Fee Waiver - Fiduciary
Shares (Note 3) ............................ (324,101) (2,454,464) (230,576) (1,371,261) (485,270)
Shareholder Servicing Fee Waiver - Class A
Shares (Note 3) ............................ (341,486) (518,312) (10,176) (65,861) (124,416)
Shareholder Servicing Fee Waiver - Class B
Shares ..................................... -- -- -- (128) --
Distribution Fee Waiver - Class A Shares
(Note 3) ................................... (341,549) (518,312) (10,176) (65,850) (124,416)
Distribution Fee Waiver - Class B Shares
(Note 3) ................................... -- -- -- (386) --
Distribution Fee Waiver - Class C Shares
(Note 3) ................................... -- -- -- (1,198) --
Distribution Fee Waiver - Class S Shares
(Note 3) ................................... (41,253) (278,527) -- (392,217) (260,091)
Administration Fee Waiver .................... (18,604) -- (137,743) (705,420) (435,952)
Reimbursement of Expenses by Adviser ......... -- -- (19,296) -- (178,863)
------------ ------------- ------------ ------------ -------------
Total Waivers and Reimbursements .................. (1,763,053) (5,081,937) (696,684) (4,451,136) (2,482,500)
------------ ------------- ------------ ------------ -------------
Total Net Expenses ................................ 680,067 4,900,623 76,042 742,935 32,321
------------ ------------- ------------ ------------ -------------
Net Investment Income ............................. 27,328 167,954 2,413 25,428 7,264
------------ ------------- ------------ ------------ -------------
Net Realized Gain (Loss) on Investments ........... 22 (141,421) 42 54 (5,418)
------------ ------------- ------------ ------------ -------------
Increase in Net Assets Resulting from Operations .. $ 27,350 $ 26,533 $ 2,455 $ 25,482 $ 1,846
============ ============= ============ ============ =============
Amounts designated as "-" are either not applicable or less than $1.00.
The accompanying notes are an integral part of the financial statements.
20 HIGHMARK(R) FUNDS
This Page Left Blank Intentionally.
STATEMENTS OF CHANGES IN NET ASSETS
CALIFORNIA TAX-FREE
MONEY MARKET FUND
-------------------------------
SIX MONTHS
ENDED
1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011
-------------------------------
Investment Activities:
Net Investment Income ...................................... $ 27,328 $ 190,167
Net Realized Gain (Loss) ................................... 22 564
-------------- --------------
Net Increase in Net Assets Resulting From Operations .......... 27,350 190,731
-------------- --------------
Dividends and Distributions to Shareholders:
Net Investment Income:
Fiduciary Shares ......................................... (12,941) (128,868)
Class A Shares ........................................... (13,637) (58,278)
Class B Shares ........................................... -- --
Class C Shares ........................................... -- --
Class S Shares ........................................... (750) (3,021)
-------------- --------------
Total Dividends and Distributions ...................... (27,328) (190,167)
-------------- --------------
Net Increase (Decrease) in Net Assets From:
Share Transactions(1) .................................... (60,534,323) 29,204,008
-------------- --------------
Total Increase (Decrease) in Net Assets ................ (60,534,301) 29,204,572
-------------- --------------
Net Assets:
Beginning of Period ........................................ 553,068,650 523,864,078
-------------- --------------
End of Period .............................................. $ 492,534,349 $ 553,068,650
============== ==============
Undistributed Net Investment Income ........................... $ 50,493 $ 50,493
============== ==============
Amounts designated as " -" are either $0 or have been rounded to $0.
(1) For details on share transaction by class, see statements of changes in net
assets - capital stock activity on pages 22 - 25.
The accompanying notes are an integral part of the financial statements.
22 HIGHMARK(R) FUNDS
TREASURY PLUS
DIVERSIFIED MONEY MARKET MONEY MARKET
FUND FUND
--------------------------------- -----------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
--------------------------------- -----------------------------
Investment Activities:
Net Investment Income ................. $ 167,954 $ 1,364,246 $ 2,413 $ 27,509
Net Realized Gain (Loss) .............. (141,421) 2,097 42 --
--------------- --------------- ------------- -------------
Net Increase in Net Assets Resulting
From Operations ....................... 26,533 1,366,343 2,455 27,509
--------------- --------------- ------------- -------------
Dividends and Distributions to
Shareholders:
Net Investment Income:
Fiduciary Shares .................... (196,837) (1,107,284) (2,311) (25,751)
Class A Shares ...................... (41,571) (184,091) (102) (1,758)
Class B Shares ...................... -- -- -- --
Class C Shares ...................... -- -- -- --
Class S Shares ...................... (10,154) (72,871) -- --
--------------- --------------- ------------- -------------
Total Dividends and
Distributions ................... (248,562) (1,364,246) (2,413) (27,509)
--------------- --------------- ------------- -------------
Net Increase (Decrease) in Net
Assets From:
Share Transactions(1) ............... (188,693,354) (19,610,119) (68,821,824) 8,480,567
--------------- --------------- ------------- -------------
Total Increase (Decrease) in
Net Assets ...................... (188,915,383) (19,608,022) (68,821,782) 8,480,567
--------------- --------------- ------------- -------------
Net Assets:
Beginning of Period ................... 2,545,523,835 2,565,131,857 195,858,524 187,377,957
--------------- --------------- ------------- -------------
End of Period ......................... $ 2,356,608,452 $ 2,545,523,835 $ 127,036,742 $ 195,858,524
=============== =============== ============= =============
Undistributed Net Investment
Income ................................. $ -- $ 80,608 $ 175 $ 175
=============== =============== ============= =============
100%
U.S. GOVERNMENT MONEY U.S. TREASURY MONEY
MARKET FUND MARKET FUND
--------------------------------- ------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
1/31/2012 YEAR ENDED 1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011 (UNAUDITED) 7/31/2011
--------------------------------- ------------------------------
Investment Activities:
Net Investment Income ................. $ 25,428 $ 333,064 $ 7,264 $ 70,042
Net Realized Gain (Loss) .............. 54 735 (5,418) 16,418
--------------- --------------- ------------- --------------
Net Increase in Net Assets Resulting
From Operations ....................... 25,482 333,799 1,846 86,460
--------------- --------------- ------------- --------------
Dividends and Distributions to
Shareholders:
Net Investment Income:
Fiduciary Shares .................... (21,567) (271,288) (4,843) (30,405)
Class A Shares ...................... (1,039) (12,747) (1,241) (9,094)
Class B Shares ...................... (2) (46) -- --
Class C Shares ...................... (6) (94) -- --
Class S Shares ...................... (2,814) (48,889) (1,180) (30,543)
--------------- --------------- ------------- --------------
Total Dividends and
Distributions ................... (25,428) (333,064) (7,264) (70,042)
--------------- --------------- ------------- --------------
Net Increase (Decrease) in Net
Assets From:
Share Transactions(1) ............... (281,410,076) 189,065,828 28,734,499 (301,806,589)
--------------- --------------- ------------- --------------
Total Increase (Decrease) in
Net Assets ...................... (281,410,022) 189,066,563 28,729,081 (301,790,171)
--------------- --------------- ------------- --------------
Net Assets:
Beginning of Period ................... 1,341,853,390 1,152,786,827 573,593,038 875,383,209
--------------- --------------- ------------- --------------
End of Period ......................... $ 1,060,443,368 $ 1,341,853,390 $ 602,322,119 $ 573,593,038
=============== =============== ============= ==============
Undistributed Net Investment
Income ................................. $ -- $ -- $ -- $ --
=============== =============== ============= ==============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 23
STATEMENTS OF CHANGES IN NET ASSETS
(CAPITAL STOCK ACTIVITY)
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------
SIX MONTHS ENDED
1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from Shares Issued ........................... 210,971,084 $ 210,971,084 512,725,924 $ 512,725,924
Reinvestment of Dividends and Distributions ........... 29 29 628 628
Cost of Shares Redeemed ............................... (216,440,860) (216,440,860) (472,579,563) (472,579,563)
-------------- --------------- ------------ ---------------
Total Fiduciary Share Transactions .................. (5,469,747) (5,469,747) 40,146,989 40,146,989
-------------- --------------- ------------ ---------------
Class A Shares:
Proceeds from Shares Issued ........................... 136,605,150 136,605,150 556,886,909 556,886,909
Reinvestment of Dividends and Distributions ........... 13,612 13,612 58,258 58,258
Cost of Shares Redeemed ............................... (191,794,086) (191,794,086) (560,634,629) (560,634,629)
-------------- --------------- ------------ ---------------
Total Class A Share Transactions .................... (55,175,324) (55,175,324) (3,689,462) (3,689,462)
-------------- --------------- ------------ ---------------
Class S Shares:
Proceeds from Shares Issued ........................... 20,023,000 20,023,000 76,797,492 76,797,492
Reinvestment of Dividends and Distributions ........... 750 750 2,846 2,846
Cost of Shares Redeemed ............................... (19,913,002) (19,913,002) (84,053,857) (84,053,857)
-------------- --------------- ------------ ---------------
Total Class S Share Transactions .................... 110,748 110,748 (7,253,519) (7,253,519)
-------------- --------------- ------------ ---------------
Net Increase (Decrease) from Capital Stock Activity ... (60,534,323) $ (60,534,323) 29,204,008 $ 29,204,008
============== =============== ============ ===============
Amounts designated as " -" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
24 HIGHMARK(R) FUNDS
DIVERSIFIED MONEY MARKET FUND
--------------------------------------------------------------------
SIX MONTHS ENDED
1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from Shares Issued ...... 2,459,932,949 $ 2,459,932,949 3,802,266,917 $ 3,802,266,917
Reinvestment of Dividends and
Distributions .................. 21,851 21,851 168,287 168,287
Cost of Shares Redeemed .......... (2,589,006,064) (2,589,006,064) (3,750,826,268) (3,750,826,268)
--------------- --------------- -------------- ---------------
Total Fiduciary Share
Transactions ................. (129,051,264) (129,051,264) 51,608,936 51,608,936
--------------- --------------- -------------- ---------------
Class A Shares:
Proceeds from Shares Issued ...... 212,697,443 212,697,443 596,354,791 596,354,791
Reinvestment of Dividends
and Distributions .............. 41,360 41,360 183,242 183,242
Cost of Shares Redeemed .......... (264,586,836) (264,586,836) (592,488,110) (592,488,110)
--------------- --------------- -------------- ---------------
Total Class A Share
Transactions ................. (51,848,033) (51,848,033) 4,049,923 4,049,923
--------------- --------------- -------------- ---------------
Class S Shares:
Proceeds from Shares Issued ...... 184,822,901 184,822,901 833,912,760 833,912,760
Reinvestment of Dividends
and Distributions .............. 10,154 10,154 68,266 68,266
Cost of Shares Redeemed .......... (192,627,112) (192,627,112) (909,250,004) (909,250,004)
--------------- --------------- -------------- ---------------
Total Class S Share
Transactions ................. (7,794,057) (7,794,057) (75,268,978) (75,268,978)
--------------- --------------- -------------- ---------------
Net Increase (Decrease)
from Capital Stock Activity .... (188,693,354) $ (188,693,354) (19,610,119) $ (19,610,119)
=============== =============== ============== ===============
TREASURY PLUS MONEY MARKET FUND
--------------------------------------------------------------------
SIX MONTHS ENDED
1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS
--------------------------------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from Shares Issued ...... 805,991,471 $ 805,991,471 966,631,663 $ 966,631,663
Reinvestment of Dividends and
Distributions .................. -- -- -- --
Cost of Shares Redeemed .......... (869,090,277) (869,090,277) (954,857,918) (954,857,918)
--------------- --------------- -------------- ---------------
Total Fiduciary Share
Transactions ................. (63,098,806) (63,098,806) 11,773,745 11,773,745
--------------- --------------- -------------- ---------------
Class A Shares:
Proceeds from Shares Issued ...... 73,317,095 73,317,095 22,301,296 22,301,296
Reinvestment of Dividends
and Distributions .............. 102 102 1,758 1,758
Cost of Shares Redeemed .......... (79,040,215) (79,040,215) (25,596,232) (25,596,232)
--------------- --------------- -------------- ---------------
Total Class A Share
Transactions ................. (5,723,018) (5,723,018) (3,293,178) (3,293,178)
--------------- --------------- -------------- ---------------
Class S Shares:
Proceeds from Shares Issued ...... -- -- -- --
Reinvestment of Dividends
and Distributions .............. -- -- -- --
Cost of Shares Redeemed .......... -- -- -- --
--------------- --------------- -------------- ---------------
Total Class S Share
Transactions ................. -- -- -- --
--------------- --------------- -------------- ---------------
Net Increase (Decrease)
from Capital Stock Activity .... (68,821,824) $ (68,821,824) 8,480,567 $ 8,480,567
=============== =============== ============== ===============
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 25
STATEMENTS OF CHANGES IN NET ASSETS
(CAPITAL STOCK ACTIVITY)
U.S. GOVERNMENT MONEY MARKET FUND
------------------------------------------------------------------
SIX MONTHS ENDED
1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from Shares Issued ........................ 2,336,878,128 $ 2,336,878,128 6,751,644,991 $ 6,751,644,991
Reinvestment of Dividends and Distributions ........ 1,111 1,111 4,862 4,862
Cost of Shares Redeemed ............................ (2,608,009,884) (2,608,009,884) (6,502,196,456) (6,502,196,456)
-------------- --------------- -------------- -----------------
Total Fiduciary Share Transactions ............... (271,130,645) (271,130,645) 249,453,397 249,453,397
-------------- --------------- -------------- -----------------
Class A Shares:
Proceeds from Shares Issued ........................ 23,618,288 23,618,288 80,741,580 80,741,580
Reinvestment of Dividends and Distributions ........ 1,014 1,014 12,680 12,680
Cost of Shares Redeemed ............................ (31,328,132) (31,328,132) (66,989,449) (66,989,449)
-------------- --------------- -------------- -----------------
Total Class A Share Transactions ................. (7,708,830) (7,708,830) 13,764,811 13,764,811
-------------- --------------- -------------- -----------------
Class B Shares:
Proceeds from Shares Issued ........................ -- -- 36,896 36,896
Reinvestment of Dividends and Distributions ........ -- -- 46 46
Cost of Shares Redeemed ............................ (96,092) (96,092) (64,253) (64,253)
-------------- --------------- -------------- -----------------
Total Class B Share Transactions ................. (96,092) (96,092) (27,311) (27,311)
-------------- --------------- -------------- -----------------
Class C Shares:
Proceeds from Shares Issued ........................ 709,917 709,917 1,314,608 1,314,608
Reinvestment of Dividends and Distributions ........ 3 3 88 88
Cost of Shares Redeemed ............................ (325,537) (325,537) (1,365,074) (1,365,074)
-------------- --------------- -------------- -----------------
Total Class C Share Transactions ................. 384,383 384,383 (50,378) (50,378)
-------------- --------------- -------------- -----------------
Class S Shares:
Proceeds from Shares Issued ........................ 480,996,972 480,996,972 1,089,861,082 1,089,861,082
Reinvestment of Dividends and Distributions ........ 2,814 2,814 45,509 45,509
Cost of Shares Redeemed ............................ (483,858,678) (483,858,678) (1,163,981,282) (1,163,981,282)
-------------- --------------- -------------- -----------------
Total Class S Share Transactions ................. (2,858,892) (2,858,892) (74,074,691) (74,074,691)
-------------- --------------- -------------- -----------------
Net Increase (Decrease) from Capital Stock
Activity ......................................... (281,410,076) $ (281,410,076) 189,065,828 $ 189,065,828
============== =============== ============== =================
Amounts designated as " -" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
26 HIGHMARK(R) FUNDS
100% U.S. TREASURY MONEY MARKET FUND
------------------------------------------------------------------
SIX MONTHS ENDED
1/31/2012 YEAR ENDED
(UNAUDITED) 7/31/2011
SHARES DOLLARS SHARES DOLLARS
------------------------------------------------------------------
Share Transactions:
Fiduciary Shares:
Proceeds from Shares Issued ........................ 552,880,129 $ 552,880,129 1,217,901,265 $ 1,217,901,265
Reinvestment of Dividends and Distributions ........ 61 61 795 795
Cost of Shares Redeemed ............................ (544,430,543) (544,430,543) (1,229,015,783) (1,229,015,783)
-------------- --------------- -------------- -----------------
Total Fiduciary Share Transactions ............... 8,449,647 8,449,647 (11,113,723) (11,113,723)
-------------- --------------- -------------- -----------------
Class A Shares:
Proceeds from Shares Issued ........................ 229,174,653 229,174,653 166,236,480 166,236,480
Reinvestment of Dividends and Distributions ........ 1,239 1,239 9,090 9,090
Cost of Shares Redeemed ............................ (227,068,940) (227,068,940) (218,047,890) (218,047,890)
-------------- --------------- -------------- -----------------
Total Class A Share Transactions ................. 2,106,952 2,106,952 (51,802,320) (51,802,320)
-------------- --------------- -------------- -----------------
Class B Shares:
Proceeds from Shares Issued ........................ -- -- -- --
Reinvestment of Dividends and Distributions ........ -- -- -- --
Cost of Shares Redeemed ............................ -- -- -- --
-------------- --------------- -------------- -----------------
Total Class B Share Transactions ................. -- -- -- --
-------------- --------------- -------------- -----------------
Class C Shares:
Proceeds from Shares Issued ........................ -- -- -- --
Reinvestment of Dividends and Distributions ........ -- -- -- --
Cost of Shares Redeemed ............................ -- -- -- --
-------------- --------------- -------------- -----------------
Total Class C Share Transactions ................. -- -- -- --
-------------- --------------- -------------- -----------------
Class S Shares:
Proceeds from Shares Issued ........................ 317,002,942 317,002,942 1,533,379,319 1,533,379,319
Reinvestment of Dividends and Distributions ........ 1,180 1,180 28,040 28,040
Cost of Shares Redeemed ............................ (298,826,222) (298,826,222) (1,772,297,905) (1,772,297,905)
-------------- --------------- -------------- -----------------
Total Class S Share Transactions ................. 18,177,900 18,177,900 (238,890,546) (238,890,546)
-------------- --------------- -------------- -----------------
Net Increase (Decrease) from Capital Stock
Activity ......................................... 28,734,499 $ 28,734,499 (301,806,589) $ (301,806,589)
============== =============== ============== =================
HIGHMARK(R) FUNDS 27
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED) AND THE YEARS OR
PERIODS ENDED JULY 31, (UNLESS OTHERWISE INDICATED)
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS
--------------------------- --------------------
NET
ASSET TOTAL
VALUE, NET NET REALIZED TOTAL NET FROM
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL DIVIDENDS AND
OF PERIOD INCOME+ INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
------------------------------------------------------------------------------------------------------------------
-------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
-------------------------------------
FIDUCIARY SHARES
2012* $1.00 $ --++ $ --++ $ --++ $ --++ $-- $ --++
2011 1.00 0.001 --++ 0.001 (0.001) -- (0.001)
2010 1.00 --++ --++ --++ --++ -- --++
2009 1.00 0.011 -- 0.011 (0.011) -- (0.011)
2008 1.00 0.024 0.001 0.025 (0.025) -- (0.025)
2007 1.00 0.031 -- 0.031 (0.031) -- (0.031)
CLASS A SHARES
2012* $1.00 $ --++ $ --++ $ --++ $ --++ $-- $ --++
2011 1.00 --++ -- --++ --++ -- --++
2010 1.00 --++ --++ --++ --++ -- --++
2009 1.00 0.009 -- 0.009 (0.009) -- (0.009)
2008 1.00 0.022 0.001 0.023 (0.023) -- (0.023)
2007 1.00 0.028 -- 0.028 (0.028) -- (0.028)
CLASS S SHARES
2012* $1.00 $ --++ $ --++ $ --++ $ --++ $-- $ --++
2011 1.00 --++ --++ --++ --++ -- --++
2010 1.00 --++ --++ --++ --++ -- --++
2009 1.00 0.007 -- 0.007 (0.007) -- (0.007)
2008 1.00 0.019 0.001 0.020 (0.020) -- (0.020)
2007 1.00 0.026 -- 0.026 (0.026) -- (0.026)
-----------------------------
DIVERSIFIED MONEY MARKET FUND
-----------------------------
FIDUCIARY SHARES
2012* $1.00 $ 0.001 $ --++ $0.001 $(0.001) $-- $(0.001)
2011 1.00 0.001 --++ 0.001 (0.001) -- (0.001)
2010 1.00 0.003 --++ 0.003 (0.003) -- (0.003)
2009 1.00 0.015 -- 0.015 (0.015) -- (0.015)
2008 1.00 0.037 -- 0.037 (0.037) -- (0.037)
2007 1.00 0.049 -- 0.049 (0.049) -- (0.049)
CLASS A SHARES
2012* $1.00 $ 0.001 $ --++ $0.001 $(0.001) $-- $(0.001)
2011 1.00 0.001 --++ 0.001 (0.001) -- (0.001)
2010 1.00 0.001 --++ 0.001 (0.001) -- (0.001)
2009 1.00 0.013 -- 0.013 (0.013) -- (0.013)
2008 1.00 0.034 0.001 0.035 (0.035) -- (0.035)
2007 1.00 0.046 -- 0.046 (0.046) -- (0.046)
CLASS S SHARES
2012* $1.00 $ 0.001 $ --++ $0.001 $(0.001) $-- $(0.001)
2011 1.00 0.001 --++ 0.001 (0.001) -- (0.001)
2010 1.00 0.001 --++ 0.001 (0.001) -- (0.001)
2009 1.00 0.010 -- 0.010 (0.010) -- (0.010)
2008 1.00 0.032 -- 0.032 (0.032) -- (0.032)
2007 1.00 0.044 -- 0.044 (0.044) -- (0.044)
-------------------------------
TREASURY PLUS MONEY MARKET FUND
-------------------------------
FIDUCIARY SHARES
2012* $1.00 $ --++ $ --++ $ --++ $ --++ $-- $ --++
2011 1.00 --++ -- --++ --++ -- --++
2010 1.00 0.001 -- 0.001 (0.001) -- (0.001)
2009 (1) 1.00 0.004^ -- 0.004 (0.004) -- (0.004)
CLASS A SHARES
2012* $1.00 $ --++ $ --++ $ --++ $ --++ $-- $ --++
2011 1.00 --++ -- --++ --++ -- --++
2010 1.00 --++ -- -- --++ -- --++
2009 (1) 1.00 0.001^ -- 0.001 (0.001) -- (0.001)
RATIO
OF EXPENSES
TO AVERAGE RATIO OF
NET NET NET ASSETS NET
ASSET ASSETS, RATIO EXCLUDING INVESTMENT
VALUE, END OF EXPENSES FEE WAIVERS INCOME
END TOTAL OF PERIOD TO AVERAGE AND REDUCTION TO AVERAGE
OF PERIOD RETURN** (000) NET ASSETS OF EXPENSES NET ASSETS
------------------------------------------------------------------------------------------------------
-------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
-------------------------------------
FIDUCIARY SHARES
2012* $1.00 0.01% $ 234,923 0.25% 0.76% 0.01%
2011 1.00 0.06 240,393 0.46 0.76 0.06
2010 1.00 0.03 200,245 0.40+++ 0.78 0.03
2009 1.00 1.15 343,075 0.54+++ 0.79 1.14
2008 1.00 2.55 460,265 0.49 0.76 2.42
2007 1.00 3.13 226,583 0.48 0.79 3.08
CLASS A SHARES
2012* $1.00 0.01% $ 240,859 0.25% 1.01% 0.01%
2011 1.00 0.02 296,035 0.50 1.01 0.02
2010 1.00 0.02 299,724 0.42+++ 1.03 0.02
2009 1.00 0.93 604,164 0.78+++ 1.04 0.90
2008 1.00 2.30 674,650 0.74 1.01 2.17
2007 1.00 2.87 329,718 0.72 1.04 2.83
CLASS S SHARES
2012* $1.00 0.01% $ 16,752 0.25% 1.06% 0.01%
2011 1.00 0.02 16,642 0.49 1.06 0.03
2010 1.00 0.02 23,895 0.42+++ 1.08 0.02
2009 1.00 0.73 39,228 0.97+++ 1.09 0.71
2008 1.00 2.04 34,968 0.99 1.06 1.92
2007 1.00 2.61 56,721 0.98 1.09 2.60
-----------------------------
DIVERSIFIED MONEY MARKET FUND
-----------------------------
FIDUCIARY SHARES
2012* $1.00 0.01% $1,855,101 0.40% 0.75% 0.01%
2011 1.00 0.06 1,984,330 0.48 0.75 0.06
2010 1.00 0.25 1,932,702 0.56+++ 0.76 0.26
2009 1.00 1.55 2,415,777 0.58+++ 0.80 1.53
2008 1.00 3.81 2,193,518 0.54 0.76 3.66
2007 1.00 4.98 1,764,559 0.52 0.78 4.87
CLASS A SHARES
2012* $1.00 0.01% $ 402,199 0.40% 1.00% 0.01%
2011 1.00 0.05 454,082 0.49 1.00 0.04
2010 1.00 0.10 450,045 0.73+++ 1.01 0.10
2009 1.00 1.30 858,653 0.83+++ 1.05 1.28
2008 1.00 3.55 981,601 0.79 1.01 3.41
2007 1.00 4.72 792,969 0.78 1.03 4.62
CLASS S SHARES
2012* $1.00 0.01% $ 99,309 0.40% 1.05% 0.01%
2011 1.00 0.05 107,112 0.50 1.05 0.04
2010 1.00 0.07 182,385 0.75+++ 1.06 0.07
2009 1.00 1.05 234,462 1.08+++ 1.10 1.03
2008 1.00 3.29 333,995 1.04 1.06 3.16
2007 1.00 4.47 372,409 1.03 1.08 4.37
-------------------------------
TREASURY PLUS MONEY MARKET FUND
-------------------------------
FIDUCIARY SHARES
2012* $1.00 0.00% $ 121,381 0.08% 0.79% 0.00%++++
2011 1.00 0.02 184,480 0.13 0.79 0.01
2010 1.00 0.05 172,706 0.14+++ 0.80 0.05
2009 (1) 1.00 0.41 139,233 0.15***+++ 0.80*** 0.23***
CLASS A SHARES
2012* $1.00 0.00% $ 5,656 0.08% 1.04% 0.00%++++
2011 1.00 0.02 11,379 0.12 1.04 0.02
2010 1.00 0.03 14,672 0.16+++ 1.05 0.03
2009 (1) 1.00 0.10 13,847 0.30***+++ 1.05*** 0.08***
The accompanying notes are an integral part of the financial statements.
28 HIGHMARK(R) FUNDS
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS
--------------------------- --------------------
NET
ASSET TOTAL
VALUE, NET NET REALIZED TOTAL NET FROM
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL DIVIDENDS AND
OF PERIOD INCOME+ INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
------------------------------------------------------------------------------------------------------------------
-------------------------------------------
TREASURY PLUS MONEY MARKET FUND (CONTINUED)
-------------------------------------------
CLASS S SHARES
2012* (2) $1.00 $ --++ $ -- $ -- $ -- $-- $ --
2011 (2) 1.00 --++ -- -- -- -- --
2010 (2) 1.00 -- -- -- -- -- --
2009 (1)(2) 1.00 --^ -- -- -- -- --
---------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
---------------------------------
FIDUCIARY SHARES
2012* $1.00 $ --++ $ --++ $ --++ $ --++ $-- $ --++
2011 1.00 --++ --++ --++ --++ -- --++
2010 1.00 0.001 -- 0.001 (0.001) -- (0.001)
2009 1.00 0.009^ -- 0.009 (0.009) -- (0.009)
2008 1.00 0.031 0.001 0.032 (0.032) -- (0.032)
2007 1.00 0.048 -- 0.048 (0.048) -- (0.048)
CLASS A SHARES
2012* $1.00 $ --++ $ --++ $ --++ $ --++ $-- $ --++
2011 1.00 --++ --++ --++ --++ -- --++
2010 1.00 0.001 -- 0.001 (0.001) -- (0.001)
2009 1.00 0.008^ -- 0.008 (0.008) -- (0.008)
2008 1.00 0.029 0.001 0.030 (0.030) -- (0.030)
2007 1.00 0.045 -- 0.045 (0.045) -- (0.045)
CLASS B SHARES
2012* $1.00 $ --++ $ --++ $ --++ $ --++ $-- $ --++
2011 1.00 --++ --++ --++ --++ -- --++
2010 1.00 0.001 -- 0.001 (0.001) -- (0.001)
2009 1.00 0.005^ -- 0.005 (0.005) -- (0.005)
2008 1.00 0.022 0.001 0.023 (0.023) -- (0.023)
2007 1.00 0.038 -- 0.038 (0.038) -- (0.038)
CLASS C SHARES
2012* $1.00 $ --++ $ --++ $ --++ $ --++ $-- $ --++
2011 1.00 --++ --++ --++ --++ -- --++
2010 1.00 0.001 -- 0.001 (0.001) -- (0.001)
2009 1.00 0.006^ -- 0.006 (0.006) -- (0.006)
2008 1.00 0.024 0.001 0.025 (0.025) -- (0.025)
2007 1.00 0.041 -- 0.041 (0.041) -- (0.041)
CLASS S SHARES
2012* $1.00 $ --++ $ --++ $ --++ $ --++ $-- $ --++
2011 1.00 --++ --++ --++ --++ -- --++
2010 1.00 --++ -- --++ --++ -- --++
2009 1.00 0.007^ -- 0.007 (0.007) -- (0.007)
2008 1.00 0.026 0.001 0.027 (0.027) -- (0.027)
2007 1.00 0.043 -- 0.043 (0.043) -- (0.043)
RATIO
OF EXPENSES
TO AVERAGE RATIO OF
NET NET NET ASSETS NET
ASSET ASSETS, RATIO EXCLUDING INVESTMENT
VALUE, END OF EXPENSES FEE WAIVERS INCOME
END TOTAL OF PERIOD TO AVERAGE AND REDUCTION TO AVERAGE
OF PERIOD RETURN** (000) NET ASSETS OF EXPENSES NET ASSETS
--------------------------------------------------------------------------------------------------------
-------------------------------------------
TREASURY PLUS MONEY MARKET FUND (CONTINUED)
-------------------------------------------
CLASS S SHARES
2012* (2) $1.00 0.00% $ -- 0.08% 0.54% 0.00%++++
2011 (2) 1.00 0.00 -- 0.12 0.54 0.02
2010 (2) 1.00 0.00 -- 0.14+++ 1.10 0.05
2009 (1)(2) 1.00 0.00 -- 0.15***+++ 0.55*** 0.23***
---------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
---------------------------------
FIDUCIARY SHARES
2012* $1.00 0.00% $ 910,693 0.12% 0.76% 0.00%++++
2011 1.00 0.03 1,181,823 0.16 0.76 0.03
2010 1.00 0.08 932,370 0.16+++ 0.77 0.08
2009 1.00 0.95 873,242 0.49+++ 0.80 0.88
2008 1.00 3.25 576,230 0.54 0.78 3.14
2007 1.00 4.90 456,802 0.53 0.79 4.80
CLASS A SHARES
2012* $1.00 0.00% $ 46,944 0.12% 1.01% 0.00%++++
2011 1.00 0.03 54,653 0.16 1.01 0.03
2010 1.00 0.06 40,888 0.18+++ 1.02 0.06
2009 1.00 0.79 66,319 0.67+++ 1.05 0.70
2008 1.00 2.99 80,235 0.79 1.05 2.89
2007 1.00 4.64 33,560 0.78 1.04 4.55
CLASS B SHARES
2012* $1.00 0.00% $ 51 0.12% 1.51% 0.00%++++
2011 1.00 0.03 148 0.16 1.51 0.03
2010 1.00 0.06 175 0.18+++ 1.52 0.06
2009 1.00 0.47 236 0.94+++ 1.55 0.43
2008 1.00 2.30 127 1.48 1.51 2.20
2007 1.00 3.91 432 1.48 1.54 3.85
CLASS C SHARES
2012* $1.00 0.00% $ 655 0.12% 1.26% 0.00%++++
2011 1.00 0.03 270 0.16 1.26 0.03
2010 1.00 0.06 321 0.18+++ 1.27 0.06
2009 1.00 0.58 308 0.82+++ 1.30 0.55
2008 1.00 2.53 251 1.24 1.28 2.44
2007 1.00 4.16 29 1.23 1.29 4.09
CLASS S SHARES
2012* $1.00 0.00% $ 102,100 0.12% 1.06% 0.00%++++
2011 1.00 0.03 104,959 0.16 1.06 0.03
2010 1.00 0.05 179,034 0.19+++ 1.07 0.05
2009 1.00 0.67 158,151 0.78+++ 1.10 0.59
2008 1.00 2.74 161,100 1.04 1.08 2.64
2007 1.00 4.38 128,681 1.03 1.09 4.30
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. FOR NET
ASSETS, "--" IS AN AMOUNT LESS THAN $1,000.
* FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED). ALL RATIOS
FOR THE PERIOD HAVE BEEN ANNUALIZED.
** TOTAL RETURN DOES NOT REFLECT ANY APPLICABLE SALES CHARGE. TOTAL RETURN IS
FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
*** ANNUALIZED.
+ PER SHARE AMOUNTS CALCULATED USING AVERAGE SHARES METHOD, UNLESS OTHERWISE
INDICATED.
++ AMOUNT REPRESENTS LESS THAN $0.001.
+++ THE EFFECT OF PARTICIPATING IN THE TREASURY'S TEMPORARY GUARANTEE PROGRAM
EXPENSE FOR THE YEARS ENDED 07/31/10 AND 07/31/09, RESPECTIVELY, WAS 0.01%
AND 0.04% FOR THE CALIFORNIA TAX-FREE MONEY MARKET FUND, 0.01% AND 0.04%
FOR THE DIVERSIFIED MONEY MARKET FUND, 0.00% AND 0.00% FOR THE TREASURY
PLUS MONEY MARKET FUND AND 0.00% AND 0.03% FOR THE U.S. GOVERNMENT MONEY
MARKET FUND.
++++ AMOUNT REPRESENTS LESS THAN 0.01%.
^ PER SHARE AMOUNTS CALCULATED USING SEC METHOD.
(1) COMMENCED OPERATIONS ON AUGUST 14, 2008.
(2) THIS CLASS HAD ONLY ONE SHARE OUTSTANDING THROUGHOUT THE PERIODS SHOWN,
THEREFORE INVESTMENT ACTIVITIES WERE NOT GENERATED OR WERE LESS THAN
$0.001.
The accompanying notes are an integral part of the financial statements.
HIGHMARK(R) FUNDS 29
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED) AND THE YEARS OR
PERIODS ENDED JULY 31, (UNLESS OTHERWISE INDICATED)
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS
--------------------------- --------------------
NET
ASSET TOTAL
VALUE, NET NET REALIZED TOTAL NET FROM
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL DIVIDENDS AND
OF PERIOD INCOME+ INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
------------------------------------------------------------------------------------------------------------------
------------------------------------
100% U.S. TREASURY MONEY MARKET FUND
------------------------------------
FIDUCIARY SHARES
2012* $1.00 $ --++ $--++ $ --++ $ --++ $-- $ --++
2011 1.00 --++ --++ --++ --++ -- --++
2010 1.00 --++ --++ --++ --++ -- --++
2009 1.00 0.003 -- 0.003 (0.003) -- (0.003)
2008 1.00 0.023 -- 0.023 (0.023) -- (0.023)
2007 1.00 0.045 -- 0.045 (0.045) -- (0.045)
CLASS A SHARES
2012* $1.00 $ --++ $--++ $ --++ $ --++ $-- $ --++
2011 1.00 --++ --++ --++ --++ -- --++
2010 1.00 --++ --++ --++ --++ -- --++
2009 1.00 0.002 -- 0.002 (0.002) -- (0.002)
2008 1.00 0.020 -- 0.020 (0.020) -- (0.020)
2007 1.00 0.042 -- 0.042 (0.042) -- (0.042)
CLASS S SHARES
2012* $1.00 $ --++ $--++ $ --++ $ --++ $-- $ --++
2011 1.00 --++ --++ --++ --++ -- --++
2010 1.00 --++ --++ --++ --++ -- --++
2009 1.00 0.001 -- 0.001 (0.001) -- (0.001)
2008 1.00 0.018 -- 0.018 (0.018) -- (0.018)
2007 1.00 0.040 -- 0.040 (0.040) -- (0.040)
RATIO
OF EXPENSES
TO AVERAGE RATIO OF
NET NET NET ASSETS NET
ASSET ASSETS, RATIO EXCLUDING INVESTMENT
VALUE, END OF EXPENSES FEE WAIVERS INCOME
END TOTAL OF PERIOD TO AVERAGE AND REDUCTION TO AVERAGE
OF PERIOD RETURN** (000) NET ASSETS OF EXPENSES NET ASSETS
-----------------------------------------------------------------------------------------------------
------------------------------------
100% U.S. TREASURY MONEY MARKET FUND
------------------------------------
FIDUCIARY SHARES
2012* $1.00 0.00% $403,064 0.01% 0.77% 0.00%++++
2011 1.00 0.01 394,618 0.11 0.76 0.01
2010 1.00 0.01 405,745 0.13+++ 0.77 0.01
2009 1.00 0.27 452,594 0.36+++ 0.80 0.25
2008 1.00 2.27 465,490 0.54 0.76 2.21
2007 1.00 4.56 334,211 0.53 0.78 4.47
CLASS A SHARES
2012* $1.00 0.00% $ 95,193 0.01% 1.02% 0.00%++++
2011 1.00 0.01 93,087 0.11% 1.01 0.01
2010 1.00 0.01 144,867 0.13+++ 1.02 0.01
2009 1.00 0.19 163,323 0.42+++ 1.05 0.19
2008 1.00 2.02 125,056 0.79 1.01 1.96
2007 1.00 4.30 151,880 0.78 1.03 4.22
CLASS S SHARES
2012* $1.00 0.00% $104,065 0.01% 1.07% 0.00%++++
2011 1.00 0.01 85,888 0.11 1.06 0.01
2010 1.00 0.01 324,771 0.13+++ 1.07 0.01
2009 1.00 0.14 120,404 0.52+++ 1.10 0.09
2008 1.00 1.77 168,509 1.04 1.06 1.71
2007 1.00 4.04 228,905 1.03 1.08 3.97
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. FOR NET
ASSETS, "--" IS AN AMOUNT LESS THAN $1,000.
* FOR THE SIX MONTH PERIOD ENDED JANUARY 31, 2012 (UNAUDITED). ALL RATIOS
FOR THE PERIOD ENDED HAVE BEEN ANNUALIZED.
** TOTAL RETURN DOES NOT REFLECT ANY APPLICABLE SALES CHARGE. TOTAL RETURN IS
FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
+ PER SHARE AMOUNTS CALCULATED USING AVERAGE SHARES METHOD, UNLESS OTHERWISE
INDICATED.
++ AMOUNT REPRESENTS LESS THAN $0.005.
+++ THE EFFECT OF PARTICIPATING IN THE TREASURY'S TEMPORARY GUARANTEE PROGRAM
EXPENSE FOR THE YEARS ENDED 07/31/10 AND 07/31/09 WAS 0.01% AND 0.04%,
RESPECTIVELY FOR THE 100% U.S. TREASURY MONEY MARKET FUND.
++++ AMOUNT REPRESENTS LESS THAN 0.01%.
The accompanying notes are an integral part of the financial statements.
30 HIGHMARK(R) FUNDS
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2012 (UNAUDITED)
1. ORGANIZATION
HighMark(R) Funds ("HighMark" or the "Trust") was organized as a Massachusetts
business trust under a Declaration of Trust dated March 10, 1987.
The Trust is registered under the Investment Company Act of 1940 (the "1940
Act"), as amended, as an open-end investment company with twenty-seven separate
funds. The following funds of the Trust are included in these financial
statements: California Tax-Free Money Market Fund, Diversified Money Market
Fund, Treasury Plus Money Market Fund, U.S. Government Money Market Fund and
100% U.S. Treasury Money Market Fund (collectively, the "Money Market Funds").
The Money Market Funds are collectively the "Funds" and each is a "Fund." All of
the series of HighMark Funds included in the Trust, except for HighMark
Wisconsin Tax-Exempt Fund, are diversified investment companies. Pursuant to
HighMark's multiple class plan, the Funds may offer up to five classes of
shares, Class A Shares, Class B Shares and Class C Shares (collectively, the
"Retail Shares"), Fiduciary Shares and Class S Shares. The Funds' prospectuses
provide a description of each Fund's investment objectives, policies and
strategies.
Class B Shares of the Funds are closed to purchases by new and existing
investors. Existing investors, however, may still exchange shares and reinvest
distributions in Class B Shares of the Funds.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Funds.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS -- The preparation
of financial statements in accordance with accounting principles generally
accepted in the United States of America require management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates and assumptions.
SECURITY VALUATION -- All securities, with the exception of repurchase
agreements, held by the Money Market Funds are stated at amortized cost, which
approximates market value pursuant to Rule 2a-7 of the 1940 Act. Under this
valuation method, purchase discounts and premium are accreted and amortized
ratably to maturity and are included in interest income. Repurchase agreements
are valued at cost, which approximates market or fair value.
FAIR VALUE MEASUREMENTS - The inputs and valuations techniques used to measure
fair value of the Funds' net assets are summarized into three levels as
described in the hierarchy below:
o Level 1 - unadjusted quoted prices in active markets for
identical assets or liabilities
o Level 2 - other significant observable inputs (including
quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.)
o Level 3 - significant unobservable inputs (including the
Fund's own assumptions in determining the fair
value of investments)
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
At the end of each calendar quarter, management evaluates the classification of
Levels 1, 2 and 3 assets and liabilities. Various factors are considered, such
as changes in liquidity from the prior reporting period; whether or not a broker
is willing to execute at the quoted price; the depth and consistency of prices
from third party pricing services; and the existence of contemporaneous,
observable trades in the market. Additionally, management evaluates the
classification of Level 1 and Level 2 assets and liabilities on a quarterly
basis for changes in listings or delistings on national exchanges.
Due to the inherent uncertainty of determining the fair value of investments
that do not have a readily available market value, the fair value of the Fund's
investments may fluctuate from period to period. Additionally, the fair value of
investments may differ significantly from the values that would have been used
had a ready market existed for such investments and may differ materially from
the values the Fund may ultimately realize. Further, such investments may be
subject to legal and other restrictions on resale or otherwise less liquid than
publicly traded securities.
For the six months ended January 31, 2012 there were no transfers between Levels
1, 2 and 3 for the Funds.
A summary of the levels for each of Fund's investments as of January 31, 2012 is
included with each Fund's schedule of investments.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the date the security is purchased or sold (trade date). Costs
used in determining realized gains and losses on the sale of investment
securities are those of the specific securities sold, adjusted for the accretion
and amortization of purchase discounts and premiums, if any, during the
respective holding periods. Interest income is recorded on the accrual basis;
dividend income is recorded on the ex-dividend date, or in the case of certain
foreign investments, as soon as the Fund is made aware of it.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions of repurchase agree-
HIGHMARK(R) FUNDS 31
NOTES TO FINANCIAL STATEMENTS (CONTNUED)
JANUARY 31, 2012 (UNAUDITED)
ments and procedures adopted by HighMark Capital Management, Inc. (the "Adviser"
or the "Administrator") are designed to ensure that the market value of the
collateral is sufficient in the event of default by the counterparty. If the
counterparty defaults and the value of the collateral declines or if the
counterparty enters an insolvency proceeding, realization of the collateral by a
Fund may be delayed or limited. Repurchase agreements held by the Funds are
generally backed by U.S. Treasury and U.S. Government agency obligations.
CLASSES -- Class specific expenses are borne by that class. Income, non-class
specific expenses and realized/unrealized gains and losses are allocated to the
respective classes on the basis of the relative daily net assets.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment
income for the Funds are declared daily and paid monthly. None of the Funds has
a targeted dividend rate, and none of the Funds guarantees that it will pay any
dividends or other distributions. Net realized capital gains, if any, will be
distributed at least annually by all Funds.
DEFERRED COMPENSATION PLAN -- Under the deferred compensation plan approved by
HighMark's Board of Trustees (the "Board"), members of the Board (the
"Trustees") who are not officers or employees of Union Bank, N.A. (the "Bank")
or any subsidiary of the Bank are permitted to defer a portion of their annual
compensation. Deferred amounts earn an approximate return as though equivalent
dollar amounts had been invested in shares of Funds selected by the Trustees,
which has the same economic effect for the Trustees as if the Trustees had
invested the deferred amounts in such Funds.
The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of HighMark.
However, HighMark has elected to invest in shares of those Funds selected by the
Trustees in order to match the deferred compensation obligation. The deferred
compensation obligation is allocated to the Funds based on average net assets.
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
HighMark and the Adviser are parties to an investment advisory agreement. For
its services, the Adviser is entitled to receive a fee with respect to each
Fund, which is calculated daily and paid monthly, based on the daily net assets
of each Fund, at an annual rate of:
California Tax-Free Money Market ....................................... 0.30%
Diversified Money Market ............................................... 0.30%
Treasury Plus Money Market ............................................. 0.30%
U.S. Government Money Market ........................................... 0.30%
100% U.S. Treasury Money Market ........................................ 0.30%
The Adviser contractually agreed to reduce its fees (excluding portfolio
brokerage and transaction costs, taxes relating to transacting in foreign
securities, if any, extraordinary expenses and any expenses indirectly incurred
by the Fund through investments in pooled investment vehicles (collectively, the
"Excluded Costs")) through November 30, 2012 and to the extent necessary to
reimburse the Funds in order to limit the Funds from exceeding certain expense
limitations as follows:
FIDUCIARY CLASS A CLASS B CLASS C CLASS S
SHARES SHARES SHARES SHARES SHARES
--------- ------- ------- ------- -------
California Tax-Free Money Market ............ 0.55% 0.80% n/a n/a 1.05%
Diversified Money Market .................... 0.57 0.82 n/a n/a 1.07
Treasury Plus Money Market .................. 0.55 0.80 n/a n/a 1.05
U.S. Government Money Market ................ 0.57 0.82 1.52% 1.27% 1.07
100% U.S. Treasury Money Market ............. 0.55 0.80 n/a n/a 1.05
n/a -- not applicable
Effective December 1, 2009, the Adviser may recoup from the Fund(s) any of the
fees and expenses it has waived and/or reimbursed until the end of the third
fiscal year after the end of the fiscal year in which such waiver and/or
reimbursement occur(ed), subject to certain limitations. The Funds will make
such payment only if the annual operating expenses of each Fund share class
(exclusive of the Excluded Costs), at the time of such payment, are below the
contractual fee limit in effect at the time the waiver/expense reimbursement
occurs. This recoupment could reduce a Fund's future total return. For the six
months ended January 31, 2012 the Funds did not recoup any fees or expenses.
On January 31, 2012, the amounts subject to possible future recoupment under the
Funds' expense limitation agreement are as follows:
EXPIRING EXPIRING EXPIRING
2013 2014 2015
--------- --------- ---------
CA Tax-Free Money Market Fund ............... $ 647,577 $ 359,676 $ 696,060
Diversified Money Market Fund ............... -- 886,489 1,312,322
Treasury Plus Money Market Fund ............. 362,876 546,346 308,013
U.S. Government Money Market Fund ........... 2,147,285 3,014,215 1,848,815
100% US Treasury Money Market Fund .......... 1,508,719 2,649,621 1,052,355
A Fund's total actual annual operating expense ratio may be less than the amount
shown for such Fund above due to additional waivers/reimbursements described
below.
The Administrator and HighMark are parties to an administrative services
agreement ("Administrative Services Agreement") under which the Administrator
provides the Funds with administrative services for an annual fee of 0.15% of
the first $8 billion of the average daily net assets of the Funds and 0.14% of
such average daily net assets in excess of $8 billion allocated to each Fund
based on its respective net assets. The Administrator may voluntarily waive its
fee, subject to termination at any
32 HIGHMARK(R) FUNDS
time by the Administrator. For the six months ended January 31, 2012, the
Administrator voluntarily waived a portion of its administration fee for the
California Tax-Free Money Market Fund, Treasury Plus Money Market Fund, the U.S.
Government Money Market Fund and the 100% U.S. Treasury Money Market Fund, which
provided investors with a higher yield during the period.
Pursuant to a separate agreement with the Administrator, BNY Mellon Investment
Servicing (US) Inc., (the "Sub-Administrator"), performs sub-administration
services on behalf of each Fund, for which it receives a fee paid by the
Administrator at the annual rate of 0.025% of the first $8 billion of the
aggregate average net assets of the Funds and 0.015% of such assets in excess of
$8 billion. For the six months ended January 31, 2012, the Sub-Administrator
earned sub-administration fees in the amount of $634,710.
Certain officers of HighMark and Trustees who are deemed to be "interested
persons" of HighMark as defined in the 1940 Act ("Interested Trustees") are also
officers of the Adviser, the Adviser's parent and the Sub-Administrator. Such
officers and Interested Trustees, except for the Funds' Chief Compliance
Officer, are paid no fees by the Funds for serving as officers of HighMark.
The Trustees who are not "interested persons" of HighMark ("Independent
Trustees") receive quarterly retainer fees and fees and expenses for each
meeting of the Board attended, which is paid by the Funds.
Boston Financial Data Services, Inc. serves as the transfer agent, dividend
disbursing agent and shareholder servicing agent for the Funds.
HighMark Funds Distributors, LLC (the "Distributor"), formerly known as Highmark
Distributors, Inc., a wholly owned subsidiary of BNY Mellon Distributors LLC,
formerly known as BNY Mellon Distributors, Inc., and HighMark are parties to an
underwriting agreement dated July 1, 2010. HighMark has adopted 12b-1 Plans (the
"Plans") with respect to Class A, Class B, Class C and Class S Shares that allow
each Fund to pay distribution and service fees to the Distributor as
compensation for its services under the Plans. The Distributor receives a
distribution fee computed daily and paid monthly, at the annual rate of 0.25% of
the daily net assets attributable to each Fund's Class A Shares, 0.75% of the
daily net assets attributable to each Fund's Class B Shares, 0.75% of the daily
net assets attributable to each Fund's Class C Shares and 0.55% of the daily net
assets attributable to each Fund's Class S Shares, which may be used by the
Distributor to provide compensation for sales support and distribution
activities.
The Distributor voluntarily agreed to waive up to 0.25% of the distribution fee
attributable to Class A Shares, up to 0.75% of the distribution fee attributable
to Class B Shares, up to 0.75% of the distribution fee attributable to Class C
Shares, up to 0.55% of the distribution fee attributable to Class S Shares for
the Money Market Funds during the six months ended January 31, 2012. The
Distributor waived the following amounts during the period:
FUND CLASS A CLASS B CLASS C CLASS S
----------------------------- -------- ------- ------- --------
CA Tax-Free Money Market ........................ $341,549 N/A N/A $ 41,253
Diversified Money Market ........................ 518,312 N/A N/A 278,527
Treasury Plus Money Market ...................... 10,176 N/A N/A N/A
U.S. Government Money Market .................... 65,850 $386 $1,198 392,217
100% US Treasury Money Market ................... 124,416 N/A N/A 260,091
HighMark has also adopted shareholder service plans/agreements permitting
payment of compensation to service providers, that may include the Bank, or its
affiliates, which have agreed to provide certain shareholder support services
for its customers who own Fiduciary, Class A or Class B Shares. In consideration
for such services, a service provider is entitled to receive compensation at the
annual rate of up to 0.25% of the average daily net assets of the applicable
class or classes of shares of the Funds. The service providers have agreed to
waive a portion of their fees for certain classes of all Funds for the six
months ended January 31, 2012. For the six months ended January 31, 2012, the
Bank, or its affiliates earned shareholder servicing fees, net of waivers, from
the Funds in the amount of approximately $395, which is included in the
shareholder servicing fees and the related waivers on the statement of
operations. The shareholder servicing fee waivers by the Bank, or its
affiliates, are voluntary and not subject to recoupment.
A contingent deferred sales charge ("CDSC") is imposed on certain redemptions of
Class B Shares. The CDSC varies depending on the number of years from the
purchase of Class B Shares until the redemption of such shares.
YEARS SINCE CONTINGENT DEFERRED
PURCHASE MADE SALES CHARGE
--------------------------------------------------------------------------------
First ............................................... 5%
Second .............................................. 4%
Third ............................................... 3%
Fourth .............................................. 3%
Fifth ............................................... 2%
Sixth ............................................... 1%
Seventh and Eighth .................................. None
A CDSC of 1% is imposed when Class C Shares are redeemed within the first year
of purchase.
Union Bank, N.A. acts as custodian (the "Custodian") for the Funds. The
Custodian, as compensation for its services, receives a fee at the annual rate
of 0.00625% of each Fund's daily net assets. The Custodian plays no role in
determining the investment policies of the Funds or which securities are to be
purchased or sold in the Funds.
4. FEDERAL INCOME TAXES
It is each Fund's intention to continue to qualify as a regulated investment
company for federal income tax purposes and distribute all of its taxable income
and net capital gains.
HIGHMARK(R) FUNDS 33
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JANUARY 31, 2012 (UNAUDITED)
Accordingly, no provision for federal income taxes is required.
The Funds have analyzed their tax positions taken on federal income tax returns
for all open tax years (tax years ended July 31, 2008 through 2011) and have
concluded that no provision for income tax is required in their financial
statements.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax
regulations, which may differ from accounting principles generally accepted in
the United States of America. As a result, the net investment income (loss) and
net realized gain (loss) on investment transactions for a reporting period may
differ significantly from distributions during such period. These book/tax
differences may be temporary or permanent in nature. To the extent these
differences are permanent, they are charged or credited to paid-in capital,
undistributed realized gains, undistributed net investment income or accumulated
net realized gain, as appropriate, in the period that the differences arise.
The tax character of dividends and distributions paid on a tax basis during the
years or periods ended July 31, 2011 and July 31, 2010 were as follows:
LONG-TERM
TAX-EXEMPT ORDINARY CAPITAL RETURN OF
INCOME INCOME GAIN CAPITAL TOTAL
---------- ---------- --------- --------- ----------
California Tax-Free
Money Market
2011 ...................... $ 189,596 $ 571 $ -- $ -- $ 190,167
2010 ...................... 168,843 35 -- -- 168,878
Diversified
Money Market
2011 ...................... -- 1,364,246 -- -- 1,364,246
2010 ...................... -- 6,301,864 -- -- 6,301,864
Treasury Plus Money Market
2011 ...................... -- 27,509 -- -- 27,509
2010 ...................... -- 79,768 -- -- 79,768
U.S. Government
Money Market
2011 ...................... -- 333,064 -- -- 333,064
2010 ...................... -- 770,164 -- -- 770,164
100% U.S. Treasury
Money Market
2011 ...................... -- 70,042 -- -- 70,042
2010 ...................... -- 90,147 -- -- 90,147
As of July 31, 2011, the components of distributable earnings (accumulated
losses) on a tax basis were as follows:
TOTAL
DISTRIBUTABLE
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED CAPITAL POST- UNREALIZED OTHER EARNINGS
ORDINARY TAX-EXEMPT LONG-TERM LOSS OCTOBER APPRECIATION TEMPORARY (ACCUMULATED
INCOME INCOME CAPITAL GAIN CARRYFORWARD LOSSES (DEPRECIATION) DIFFERENCES LOSSES)
------------- ------------- ------------- ------------ ------- -------------- ----------- -------------
California Tax-Free
Money Market ...... $ -- $ 54,591 $ -- $ -- $ -- $ -- $ (4,098) $ 50,493
Diversified
Money Market ...... 109,580 -- -- -- -- -- (28,972) 80,608
Treasury Plus
Money Market ...... 624 -- -- -- -- -- (449) 175
U.S. Government
Money Market ...... 4,951 -- -- (1,731) -- -- (4,951) (1,731)
100% U.S. Treasury
Money Market ...... 812 -- -- (77,033) -- (1,979) (812) (79,012)
AMOUNTS DESIGNATED AS "--" ARE EITHER NOT APPLICABLE OR LESS THAN $1.00.
Post-October losses represent losses realized on investment transactions from
November 1, 2010 through July 31, 2011, that, in accordance with federal income
tax regulations, a Fund may elect to defer and treat as having arisen in the
following year.
For federal income tax purposes, capital loss carryforwards represent net
capital losses of a Fund that may be carried forward for a maximum period of
eight years and applied against future net realized gains. On December 22, 2010,
the Regulated Investment Company Modernization Act of 2010 was enacted to
modernize several of the federal income and excise tax provisions related to
regulated investment companies. Under pre-enactment law, capital losses could be
carried forward for eight years, and carried forward as short-term capital
losses, irrespective of the character of the original loss. New net capital
losses (those earned in taxable years beginning after December 22, 2010) may be
carried forward indefinitely and must retain the character of the original loss.
Such new net capital losses generally must be used by a regulated investment
company before it uses any net capital losses incurred
34 HIGHMARK(R) FUNDS
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
JANUARY 31, 2012 (UNAUDITED)
in taxable years beginning on or before December 22, 2010. This increases the
likelihood that net capital losses incurred in taxable years beginning on or
before December 22, 2010 will expire unused. At July 31, 2011, the Funds had
capital loss carryforwards available to offset future realized capital gains
through the indicated expiration dates:
2013 2014 2015 2016 2017 2018 2019 TOTAL
---------- -------- ------- ------ -------- ------- ------- ---------
U.S. Government Money Market ............... $ 1,112 $ 618 $ -- $ -- $ -- $ 1 $ -- $ 1,731
100% U.S. Treasury Money Market ............ -- -- 16,174 11,980 -- -- 48,879 77,033
AMOUNTS DESIGNATED AS "--" ARE EITHER NOT APPLICABLE OR LESS THAN $1.00.
During the year ended July 31, 2011, capital loss carryforwards that were
utilized and/or expired are as follows:
U.S. Government Money Market ....................................... $14,850
100% U.S. Treasury Money Market .................................... 87,431
5. CONCENTRATION OF CREDIT RISK
The California Tax-Free Money Market Fund invest in debt securities issued by
the State of California and its political subdivisions. The ability of the
issuers of the securities held by this Fund to meet their obligations may be
affected by economic and political developments in California.
6. MARKET
On August 5, 2011, Standard & Poor's ("S&P") lowered the long-term sovereign
credit rating of U.S. Government debt obligations from AAA to AA+. Shortly
thereafter, S&P also downgraded the long-term credit ratings of U.S.
Government-sponsored enterprises. These actions initially have had an adverse
effect on financial markets. It is possible that the downgrade of the U.S.
Government's credit rating may create broader financial turmoil and uncertainty,
which would weigh heavily on the global financial system. The downgrade could,
for example, disrupt money markets, long-term or short-term fixed income
markets, foreign exchange markets, commodities markets and equity markets. These
adverse consequences could extend to the borrowers of the loans held by a Fund
and, as a result, could materially and adversely affect returns on a Fund's
investments, the ability of borrowers to continue to pay their debt service or
refinance and repay their loans as they become due and a Funds' ability to
continue to acquire targeted assets on attractive terms. While it is not
possible to precisely predict the longer-term impact of the downgrade on the
financial markets and the participants therein, it might be material and adverse
to a Fund(s).
7. NEW ACCOUNTING PRONOUNCEMENT
In May 2011, the Financial Accounting Standards Board issued Accounting
Standards Update ("ASU") No. 2011-04 "Amendments to Achieve Common Fair Value
Measurement and Disclosure Requirements in U.S. GAAP and IFRSs". ASU 2011-04
includes common requirements for measurement of and disclosure about fair value
between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to
disclose the following information for fair value measurements categorized
within Level 3 of the fair value hierarchy: quantitative information about the
unobservable inputs used in the fair value measurement, the valuation processes
used by the reporting entity and a narrative description of the sensitivity of
the fair value measurement to changes in unobservable inputs and the
interrelationships between those unobservable inputs. In addition, ASU 2011-04
will require reporting entities to make disclosures about amounts and reasons
for all transfers in and out of Level 1 and Level 2 fair value measurements. The
new and revised disclosures are effective for interim and annual reporting
periods beginning after December 15, 2011. Management is currently evaluating
the implications of ASU No. 2011-04 and its impact on the financial statements.
In December 2011, FASB issued ASU No. 2011-11, "Disclosures about Offsetting
Assets and Liabilities". ASU No. 2011-11 requires disclosures to make financial
statements that are prepared under U.S. GAAP more comparable to those prepared
under IFRS's. The new disclosure requirements mandate that entities disclose
both gross and net information about instruments and transactions eligible for
offset in the statement of assets and liabilities as well as instruments and
transactions subject to an agreement similar to a master netting arrangement. In
addition, ASU No. 2011-11 requires disclosure of collateral received and posted
in connection with master netting agreements or similar arrangements. New
disclosures are required for annual reporting periods beginning on or after
January 1, 2013, and interim periods within those annual periods. Management is
evaluating the impact of ASU No. 2011-11 on the financial statements and
disclosures.
8. SUBSEQUENT EVENTS
The Bank of New York Mellon Corporation ("BNY Mellon") recently announced that
it has agreed to sell BNY Mellon Distributors LLC and its four subsidiaries
(including the Distributor) to Foreside Distributors, a subsidiary of Foreside
Financial Group (the "Transaction"). Subject to any necessary approvals, the
Transaction is anticipated to close on or about April 1, 2012. Upon the closing
of the Transaction, BNY Mellon Distributors will become an indirect, wholly
owned subsidiary of Foreside Financial Group, and it is anticipated will be
named Foreside Funds Distributors LLC.
HIGHMARK(R) FUNDS 35
FUND INFORMATION (UNAUDITED)
JANUARY 31, 2012
HighMark Funds is committed to managing our mutual funds in the best interests
of our shareholders. The Board of Trustees of HighMark Funds has delegated the
authority to vote proxies on behalf of the Funds that own voting securities to
the Adviser. The Board has authorized the Adviser to delegate proxy voting
authority with respect to a Fund to that Fund's sub-adviser. A description of
the proxy voting guidelines and policies that the Funds use to determine how to
vote proxies relating to portfolio securities is available (i) without charge,
upon request by calling our investor services desk at 1-800-433-6884; (ii) on
the SEC's website at http://www.sec.gov; and (iii) on HighMark Funds' website at
http://www.highmarkfunds.com. Information relating to how a Fund voted proxies
relating to portfolio securities during the most recent 12-month period ended
June 30 is available (i) without charge, upon request by calling our investor
services desk at 1-800-433-6884; (ii) on the SEC's website at
http://www.sec.gov; and (iii) on the HighMark Funds' website at
http://www.highmarkfunds.com. The Trust files its complete schedule of portfolio
holdings with the SEC for the first and third quarters of each fiscal year on
Form N-Q within sixty days after the end of the period. The Funds' Forms N-Q are
(i) available without charge upon request by calling our investor services desk
at 1-800-433-6884; (ii) available on the SEC's website at http://www.sec.gov;
(iii) available on the HighMark Funds' website at http://www.highmarkfunds.com;
and (iv) may be reviewed and copied at the SEC's Public Reference Room in
Washington, DC. Information on the operation of the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
FIDUCIARY SHARES INFORMATION
FUND CUSIP TICKER FUND #
CALIFORNIA TAX-FREE MONEY MARKET 431114842 HMCXX 487
DIVERSIFIED MONEY MARKET 431114883 HMDXX 484
TREASURY PLUS MONEY MARKET 431123108 HMFXX 2219
U.S. GOVERNMENT MONEY MARKET 431114701 HMGXX 485
100% U.S. TREASURY MONEY MARKET 431114503 HMTXX 486
RETAIL SHARES INFORMATION
FUND CUSIP TICKER FUND #
CALIFORNIA TAX-FREE MONEY MARKET
CLASS A SHARES 431114859 HMAXX 476
DIVERSIFIED MONEY MARKET
CLASS A SHARES 431114800 HMVXX 473
TREASURY PLUS MONEY MARKET
CLASS A SHARES 431123306 HMPXX 2218
U.S. GOVERNMENT MONEY MARKET
CLASS A SHARES 431114602 HMUXX 474
CLASS B SHARES 431114495 HGBXX 450
CLASS C SHARES 431112531 HGTXX 1499
100% U.S. TREASURY MONEY MARKET
CLASS A SHARES 431114404 HMRXX 475
CLASS S SHARES INFORMATION
CALIFORNIA TAX-FREE MONEY MARKET 431112705 HCSXX 1727
DIVERSIFIED MONEY MARKET 431112408 HDSXX 1728
TREASURY PLUS MONEY MARKET 431123207 HMSXX 2220
U.S. GOVERNMENT MONEY MARKET 431112507 HGSXX 1729
100% U.S. TREASURY MONEY MARKET 431112606 HUSXX 1730
36 HIGHMARK(R) FUNDS
NOTES
HIGHMARK(R) FUNDS 37
NOTES
38 HIGHMARK(R) FUNDS
NOTES
HIGHMARK(R) FUNDS 39
SERVICE PROVIDERS & BOARD OF TRUSTEES
INVESTMENT ADVISER & ADMINISTRATOR
HighMark Capital Management, Inc.
350 California Street, Suite 1600
San Francisco, CA 94104
CUSTODIAN
Union Bank, N.A.
350 California Street
San Francisco, CA 94104
DISTRIBUTOR
HighMark Funds Distributors, LLC
760 Moore Road
King of Prussia, PA 19406
LEGAL COUNSEL
Ropes & Gray LLP
Three Embarcadero Center
San Francisco, CA 94111-4006
INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
Deloitte & Touche LLP
1700 Market Street
Philadelphia, PA 19103
TRANSFER AGENT
Boston Financial Data Services
PO Box 8416
Boston, MA 02266
BOARD OF TRUSTEES
David E. Benkert, Chairman
Thomas L. Braje
Evelyn S. Dilsaver
David A. Goldfarb
Michael L. Noel
Mindy M. Posoff
Earle A. Malm, II
40 HIGHMARK(R) FUNDS
--------------------------------------------------------
TO LEARN MORE ABOUT HIGHMARK, VISIT US AT
WWW.HIGHMARKFUNDS.COM OR CALL:
INVESTOR SERVICES DESK
1.800.433.6884
INVESTMENT PROFESSIONAL SUPPORT DESK
1.800.455.5609
THANK YOU
FOR YOUR INVESTMENT.
[HIGHMARK FUNDS LOGO OMITTED](R)
---------------------------------
Mutual Funds:
o are not FDIC insured
o have no bank guarantee
o may lose value
---------------------------------
[HIGHMARK FUNDS LOGO OMITTED](R)
445 South Figueroa Street o Suite 306 o Los Angeles o California o 90071
WWW.HIGHMARKFUNDS.COM
HMKSA0040200
84808-A (01/12)
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) Schedule of Investments in securities of unaffiliated issuers as of the
close of the reporting period is included as part of the report to
shareholders filed under Item 1 of this form.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's Board of Trustees, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)),
or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial
officers, or persons performing similar functions, have concluded
that the registrant's disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940, as
amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of
a date within 90 days of the filing date of the report that includes
the disclosure required by this paragraph, based on their evaluation
of these controls and procedures required by Rule 30a-3(b) under the
1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b)
under the Securities Exchange Act of 1934, as amended (17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's second
fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) HighMark Funds
-------------------------------------------------------------
By (Signature and Title)* /s/ Earle A. Malm II
------------------------------------------------
Earle A. Malm II, President
(principal executive officer)
Date 4/5/2012
---------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Earle A. Malm II
------------------------------------------------
Earle A. Malm II, President
(principal executive officer)
Date 4/5/2012
---------------------------------------------------------------------
By (Signature and Title)* /s/ Pamela O'Donnell
------------------------------------------------
Pamela O'Donnell, Chief Financial Officer
(principal financial officer)
Date 4/5/2012
---------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.