NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2001 (UNAUDITED)
HighMark Funds ("HighMark" or "the Funds") was organized as a Massachusetts business trust under a
Declaration of Trust dated March 10, 1987. Prior to December 4, 1996, HighMark was known as The
The Funds are registered under the Investment Company Act of 1940, as amended, as a diversified open-end
investment company with thirteen funds: the Growth Fund, the Value Momentum Fund, the Income Equity Fund,
the Core Equity Fund, the Balanced Fund, the Small Cap Value Fund, the International Equity Fund, the
California Intermediate Tax-Free Bond Fund, the Bond Fund, (collectively the "Non-Money Market Funds") and
the 100% U.S. Treasury Money Market Fund, the U.S. Government Money Market Fund, the Diversified
Money Market Fund and the California Tax-Free Money Market Fund (collectively the "Money Market
Funds"). HighMark is registered to offer six classes of shares, Class A, Class B and Class C shares (collectively
called the "Retail Shares"), Fiduciary Shares, Class I Shares and Class S Shares. The Funds' prospectuses
provide a description of each Fund's investment objectives, policies and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the Funds.
BASIS OF PRESENTATION OF STATEMENTS -- The HighMark Funds acquired the Stepstone Funds in a
series of tax-free business combinations in April 1997. While each Fund now exists legally as a HighMark Fund,
a number of the surviving funds have kept the past performance of the Stepstone Funds. In accordance with
generally accepted accounting principles, the financial highlights presented reflect prior periods beginning on the
first day of the accounting survivor's fiscal year (August 1, 1995 and February 1, 1995, respectively).
SECURITY VALUATION -- Investment securities held by the Money Market Funds are stated at amortized
cost, which approximates market value. Under this valuation metho