Natives of Kodiak

Shareholders Meeting

September 20, 2014

Presented by:

Keith Forslund, Senior Portfolio Manager

Highmark Capital Management, Inc. is a wholly owned subsidiary of MUFG Union Bank, N.A.

AGENDA

• Past Results

• Current Results

• Economic Outlook

• Investment Forecast

CAPITAL MARKET REVIEW - August 31, 2014

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

Total Return 1-Month 3-Month 6-Month YTD 1-Year 3-Year 5-Year 10-YearS&P 500 4.00 4.68 8.84 9.89 25.25 20.61 16.88 8.38NASDAQ Composite 4.99 8.30 6.72 10.48 29.25 22.46 19.15 10.63Non-US (EAFE) -0.15 -1.13 1.57 2.93 16.92 11.87 8.69 7.50Emerging Markets 2.29 7.18 14.80 10.95 20.40 4.70 8.24 12.52REITS 3.27 4.41 11.06 20.09 24.01 14.91 18.98 9.16High Yield Bonds 1.51 1.01 2.87 5.72 10.51 10.31 12.07 8.50BarCap Aggregate Bond 1.10 0.90 2.73 4.80 5.66 2.92 4.49 4.73Cash (T-Bills) Euro: .23 0.00 0.01 0.02 0.03 0.04 0.06 0.08 1.47

Russell Value-Growth -0.91 -0.42 2.50 0.87 -1.86 1.62 -1.20 -0.97S&P 500-Russell 2000 -0.96 0.83 8.90 8.13 7.56 1.61 -0.15 -0.99US Dollar (TWI) 0.87 1.94 1.79 1.69 1.85 5.13 1.07 -0.93CRB Commodity Index -0.64 -5.68 -6.04 1.73 -1.29 -7.92 4.49 6.46WTI Oil -0.38 -5.36 -4.88 -0.31 -9.37 3.29 6.94 8.80Gold 0.15 3.48 -2.85 6.63 -7.85 -10.99 6.31 12.12

PAST RESULTS

Natives of Kodiak Performance

Average Annual Returns (8/31/14)

2 Years 3 Years 4 Years 5 Years

Permanent Fund 13.22% 11.66% 11.92% 10.57%

Blended Benchmark** 13.77% 11.10% 11.18% 9.87%

**75% MSCI All Country World Index 23% BC Intermediate US Govt/Credit Index 2% Citigroup 3 Mo T-Bill Index

PAST RESULTS

• Stock market returns since bottom (3/6/2009)US Stocks > 200%, including dividends

Developed International +150%, including dividends

Emerging Markets +130%, including dividends

• Worldwide economic conditions stabilized but slow growth remained

• Sovereign debt crisis ebbing

• Real estate values stabilizing

• Banks reluctant to lend

• Corporate earnings strong

EQUITY MARKET S&P 500 Large Cap Index – Price Changes Last 5 Years

September 2, 2009 – August 31, 2014

Source: Bloomberg

BOND MARKET

Source: Bloomberg

30-Year Treasuries – Price Changes Last 30 YearsSeptember 2, 1984 – August 31, 2014

BOND MARKET

Source: Bloomberg

30-Year Treasuries – Price Changes Last 5 YearsSeptember 2, 2009 – August 31, 2014

CURRENT RESULTS

Natives of Kodiak Account

YTD 12 Months 2013

Permanent Fund 6.58% 16.07% 11.08%

Blended Benchmark** 6.07% 16.40% 11.23%

As of 8/31/14

**65% MSCI All Country World Index 23% BC Intermediate US Govt/Credit Index 2% Citigroup 3 Mo T-Bill Index 10% HFRI FOF Market Defensive Index

CURRENT RESULTS • US stock market rallying on Central Bank activities, improving economic conditions• Foreign stock markets are improving• Bond market declining (yields rising from historic lows)• Dollar up on global anxiety (hurts foreign investments)• Economic Concerns

– Federal Reserve bond purchase uncertainty– Consumer spending – Economic data indicate slow global growth – Geopolitical concerns• Economic Positives– Unemployment improving– Corporate earnings strong– Strong corporate balance sheets – Pent up demand– Housing starts deficit– Fiscal / monetary stimulus

ECONOMIC OUTLOOK

• Economy Improving growth

• Consumer Less of a concern (unemployment, spending, reducing debt)

• Housing Improving

• Inflation Not an issue through 2014 + foreseeable future

• Global Economy(non U.S.) Europe - A Concern

• Uncertainties Unwinding global government intervention, underemployment, Eurozone stability, Federal Reserve actions

INVESTMENT FORECAST

• Corporate earnings strength / peaking margins?

• Limited inflationary pressures

• Stock market valuation is reasonable in a low interest rate environment

• Stocks favored over bonds

HighMark Capital Management, Inc. (HighMark), an SEC-registered investment adviser, is a subsidiary of MUFG Union Bank, N.A (MUB). HighMark manages institutional separate account portfolios for a wide variety of for-profit and non-profit organizations, public agencies, public and private retirement plans, and personal trusts of all sizes. It may also serve as sub-adviser for mutual funds, common trust funds, and collective investment funds. MUB, a subsidiary of MUFG Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does not guarantee of future results. Individual account management and construction will vary depending on each client’s investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any other federal government agency, are NOT deposits of or guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal.

Benchmarks presented are used for comparative purposes only and is provided to represent the market conditions during the period shown. Benchmark returns do not reflect the deduction of advisory fees, custody fees, transaction costs, or other investment expenses, but the returns assume the reinvestment of dividends and other earnings. An investor cannot invest directly in an unmanaged index.

Some information provided herein was obtained from third party sources deemed to be reliable; HighMark and its affiliates make no representations or warranties with respect to the timeliness, accuracy, or completeness of the information provided. Any information provided is subject to change without notice.

© HighMark Capital Management, Inc. 2014. All rights reserved.