Wisconsin Tax-Exempt Fund
RETAIL & FIDUCIARY SHARES As of June 30, 2009
(Sub-advised by Ziegler Capital Management, LLC since June 8, 2009)
INVESTMENT OBJECTIVE
The 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 through municipal debt securities, with a high concentration of Wisconsin issued bonds
A B OUT TH E SUB - A DVISE R
Ziegler Capital Management, LLC (ZCM) serves as investment adviser to the HighMark Equity Income Fund. ZCM’s investment philosophy is driven by their research, which shows that persistent investor behavior causes securities to be priced temporarily too low or too high. ZCM creates risk-controlled portfolios which seek to outperform a market benchmark by exploiting the investment opportunities created by this persistent investor behavior.
WHY THE HI GHM A RK WI S CO NS I N TA X-EX EM PT F U ND
A Disciplined Strategy The Fund follows a buy and hold, total return, bottom-up, credit-driven strategy focused on investment grade and essential service bonds — with more than 70% of the portfolio invested in Wisconsin paper. Federal and State Tax Exemption The Fund offers Wisconsin investors the benefit of federal and state tax exemption with quality, tax-free municipal bonds.
A B OUT TH E PORTF OL IO M A N A G E RS
Richard D. Scargill Vice President, Director of Fixed Income Portfolio Management Ziegler Capital Management, LLC. Education: MBA, Marist College; BS, Finance, University of South Florida
Reduction of Tax Liability The Fund offers investors to further reduce their tax liability with the Fund’s low Alternative Minimum Tax (AMT) exposure.1 Risk Management The Fund risk is carefully managed using a rigorous nine-point due diligence screen for the selection of underlying credits. The Fund is well-diversified through a broad spectrum of bonds and is continually monitored through additional research tools.
Michael S. Sanders, CFA, FRM Vice President and Portfolio Manager Ziegler Capital Management, LLC. Education: MS, Financial Economics, Marquette University; BBA, Finance, St. Norbert College
Paula Horn Chief Investment Officer for Fixed Income Investments Zeigler Capital Management, LLC. Education: MM, J.L. Kellogg Graduate School of Management at Northwestern University; BA, Tufts University
1
A portion of income may be subject to the Alternative Minimum Tax (AMT). Capital gains, if any, will be subject to capital gains tax. Bond fund values fluctuate in response to the financial condition of individual issuers, changes in interest rates, and general market and economic conditions. Investment strategies that concentrate in particular market segments tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to the following specific risks: State of Wisconsin Risk. Consult the Fund’s prospectus for additional information on these and other risks.
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The smarter approach to investing.
2Q | 09
Wisconsin Tax-Exempt Fund
RETAIL & FIDUCIARY SHARES As of June 30, 2009
F UN D DESCRIPTION
IN CE PTION DATES
AV ERA GE A NNUA L TOTA L RETU RNS
year to date*
as of June 30, 2009
1 year* annualized* 3 year* annualized* 5 year* annualized* since inception*
Fund Inception . . . . . . . . . . . . . . . . . . . June 13, 1994 Retail A . . . . . . . . . . . . . . . . . . . . . . . . June 13, 1994 Retail B . . . . . . . . . . . . . . . . . . . . . . . January 6, 2003 Retail C . . . . . . . . . . . . . . . . . . . . . . . January 6, 2003 Fiduciary . . . . . . . . . . . . . . . . . . . . . . . . . June 8, 2009
TICKE R
RE TA IL A
Net Asset Value Maximum Sales Charge
RE TA IL B †
5.09% 2.75% 4.70% -0.30% 4.71% 3.71% –
1.84% -0.41% 1.10% -3.82% 1.11% 0.13% –
2.75% 1.97% 1.98% 1.03% 2.01% 2.01% –
2.97% 2.50% 2.21% 1.86% 2.22% 2.22% –
4.25% 4.09% 2.25% 2.25% 2.25% 2.25% –
Retail A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PWTEX Retail B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .WTEBX Retail C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .WTECX Fiduciary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .WTEFX
CUSIP
Net Asset Value Maximum Sales Charge
RE TA IL C
Net Asset Value Maximum Sales Charge
F IDUCIA RY
Retail A . . . . . . . . . . . . . . . . . . . . . . . . . . . .431113786 Retail B . . . . . . . . . . . . . . . . . . . . . . . . . . . .431113778 Retail C . . . . . . . . . . . . . . . . . . . . . . . . . . . .431113760 Fiduciary . . . . . . . . . . . . . . . . . . . . . . . . . . .431113794
F UN D IN F ORM ATION
Net Asset Value
Number of Holdings . . . . . . . . . . . . . . . . . . . . . . .214 Total Fund Assets . . . . . . . . . . . . . . . . .$149,556,316
N E T A SSE T VA LUE
Retail A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$9.98 Retail B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$9.97 Retail C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$9.97 Fiduciary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N/A
F UN D E X PE N SES
The performance quoted herein represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost, and current performance may be higher or lower than the performance quoted. For performance data current to the most recent month end, please call 1.800.433.6884 or visit us at www.highmarkfunds.com. † Retail B Shares are closed to new purchases. The B Shares will remain open to capital gains and dividend repurchases for existing shareholders.
Advisory Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . .0.50% 12b-1: Class A . . . . . . . . . . . . . . . . . . . . . . . . . 0.25% 12b-1: Class B . . . . . . . . . . . . . . . . . . . . . . . . . .0.75% 12b-1: Class C . . . . . . . . . . . . . . . . . . . . . . . . . .0.75% Total Expenses (gross): A Shares . . . . . . . . . . . . 1.26% Total Expenses (net)**: A Shares . . . . . . . . . . . .0.90% Total Expenses (gross):B Shares . . . . . . . . . . . . 1.76% Total Expenses (net)**: B Shares . . . . . . . . . . . .1.60% Total Expenses (gross):C Shares . . . . . . . . . . . . 1.51% Total Expenses (net)**: C Shares . . . . . . . . . . . .1.35% Total Expenses (gross): Fiduciary . . . . . . . . . . . 1.01% Total Expenses (net)**: Fiduciary . . . . . . . . . . .0.65%
** The Fund’s Adviser has contractually agreed to waive fees or reimburse expenses in order to keep total operating expenses (exclusive of 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 underlying funds) for all share classes for the period beginning June 8, 2009 and ending on June 7, 2010. Please see the prospectus for details on fees and expenses. RISK M E A SURES–CL A SS A 3 YE A R E N DIN G 6/ 3 0/ 09
A NNUA L RETU RNS
RE TA IL A
2003* 4.63% 2.28% – – –
2004* 3.57% 1.26% 2.74% 1.74% –
2005* 2.64% 0.35% 1.92% 0.93% –
2006* 3.90% 1.57% 3.17% 2.17% –
2007* 2.54% 0.24% 1.80% 0.81% –
2008* -3.16% -5.35% -3.87% -4.81% –
Net Asset Value Maximum Sales Charge
RE TA IL C
Net Asset Value Maximum Sales Charge
F IDUCIA RY
Net Asset Value
* The Predecessor Fund was re-organized into the HighMark Fund on 6/8/09. The performance presented links the performance to the Predecessor Fund from inception on 6/13/1994.
TO P TEN H O L DI NGS
security coupon — 5.13 5.50 6.38 5.25 5.00 5.00 5.63 5.50 3.65 maturity date — 10/01/29 12/15/26 8/01/39 12/15/23 2/01/19 10/01/24 7/20/29 12/15/19 8/01/13 % 3.42% 3.04% 2.74% 2.07% 1.79% 1.70% 1.51% 1.48% 1.46% 1.43%
SEC TO R A L LO C ATI O N
Sales Tax Revenue 11.83% Multi-Family 10.06% Education 7.66% U.S. Government Guaranteed 6.79% Other 16.82% Utility 5.42% General Obligation 4.83% Retirement/Healthcare 3.79% Money Fund 3.33%
R 2†† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.98 Alpha†† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -0.84 Beta†† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.92 Standard Deviation†† . . . . . . . . . . . . . . . . . . . . 5.08%
†† Relative to the Barclays Capital Muni Bond Index. R-Squared is a statistical measure that represents the percentage of a fund's or security's movements that are explained by movements in a benchmark index. Alpha measures the difference between a fund’s actual returns and its expected performance, given the level of risk (as measured by beta). Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Standard Deviation is a statistical measure of the range of a fund’s performance. Approximately 67% of the time, the total returns of any given fund are expected to differ from its mean total return by no more than plus or minus the standard deviation figure.
AIM Tax-Free Investments Guam Power Authority SE WI Pro Baseball Park Puerto Rico Sales Tax Wisconsin Center District Green Bay Brown Co. Virgin Islands Public Fin. Oak Creek Housing Auth. SE WI Pro Baseball Park Milwaukee Redevel. Auth.
Lease Revenue 29.47%
Holdings are subject to change.
HighMark Funds: • Are NOT bank deposits; • Are NOT obligations of or guaranteed by Union Bank, N.A. (UB) or any subsidiary or affiliate; • Are NOT insured or guaranteed by the FDIC or any other government agency; • Involve investment risk, including possible loss of principal.
To determine if the Fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information can be found in the Fund’s prospectus, which can be obtained by calling 1.800.433.6884 or by visiting www.highmarkfunds.com. Read the prospectus carefully before investing. Mutual fund investing involves risks, including possible loss of principal. HighMark Capital Management, Inc., a registered adviser, is a wholly owned subsidiary of Union Bank, N.A. and serves as investment adviser for HighMark Funds. Union Bank, N.A., a subsidiary of UnionBanCal Corporation, provides certain services to the funds and is compensated for these services. HighMark Funds are distributed by HighMark Funds Distributors, Inc., an affiliate of PFPC Distributors, Inc.
HMK-FF-070-3300
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