NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2000 (UNAUDITED)
1. ORGANIZATION 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 HighMark Group.
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 Balanced Fund, the Small Cap Value Fund, the International Equity Fund, the California Intermediate Tax-
Free Bond Fund, the Bond Fund, the Intermediate-Term 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.
THE 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, 1996 and February 1, 1997, respectively).
SECURITY VALUATION - Investment securities held by the Money Market Funds are stated at amortized
cost, which approximates market value. Under this valu