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Brevard County School District

300 S. Orange Avenue, Suite 1170Orlando, FL 32801(407) 648-2208(407) 648-1323 fax

PFM Asset Management LLCOne Keystone Plaza, Suite 300North Front & Market StreetsHarrisburg, PA 17101-2044717-232-2723 • 717-233-6073 fax

Investment Performance ReviewQuarter Ended March 31, 2016

Investment AdvisorsSteven Alexander, CTP, CGFO, CPPT, Managing DirectorRobert Cheddar, CFA, Chief Credit Officer, Managing DirectorD. Scott Stitcher, CFA, DirectorRichard Pengelly, CFA, CTP, DirectorRebecca Geyer, CTP, Senior Analyst

Brevard County School District Investment Report - Quarter Ended March 31, 2016

Table of ContentsTab I.

Section A Market Review

Tab II.

Section B Summary of Portfolio Statistics

Section C Capital Short Term Fund Portfolio Performance

Section D Operating Short Term Fund Portfolio Performance

Section E Discretionary Sales SurTax Account Portfolio Performance

Section F Self Insurance Fund Portfolio Performance

Section G Health Insurance Fund Portfolio Performance

Tab III.Section H Asset Allocation Chart

This material is based on information obtained from sources generally believed to be reliable and available to the public, however PFM Asset Management LLC cannot guarantee its accuracy, completeness or suitability. This material is for general information purposes only and is not intended to provide specific advice or recommendation. The information contained in this report is not an offer to purchase or sell any securities.

Table of Contents Section i


TAB I

Brevard County School District Investment Report – Quarter Ended March 31, 2016

PFM Asset Management LLC Section A-1

Summary

Volatility ushered in the New Year, as slowing global growth droveinvestors out of riskier assets, such as equities and high‐yield bonds, andinto safe‐haven securities such as U.S. government debt. Stocks postedone of their worst‐ever starts to a year, with the S&P 500 falling more than10% while commodity prices plunged. As a result, U.S. Treasury yieldsretraced nearly all of their fourth‐quarter increases.

Fear began to abate in February, spurring a rebound in stocks andcommodities, which finished the quarter at or near 2016 highs. Interestrates rose off their February lows before giving back gains after theFederal Open Market Committee's (FOMC’s) “dovish” March statement.

The Federal Reserve (Fed) left policy rates unchanged in the 1st quarter.The FOMC lowered expectations for only two rate hikes in 2016, andacknowledged that global economic and financial market conditions poseda risk to its outlook.

While the Fed embarks on a tightening path, other global central banks arestill easing monetary policy. The European Central Bank expanded its bondpurchase program to 80 billion euros per month, including the purchase ofcorporate bonds, while the Bank of Japan cut rates to ‐0.10%.

Economic Snapshot

U.S. gross domestic product (GDP) grew at a 1.4% rate in the fourthquarter of 2015 and 2.4% for all of 2015 as consumer spending continuedto drive growth, while business investment and net exports were a drag.Preliminary estimates of growth in the first quarter are approximately 1%.

The labor market remained strong, as employers added 628,000 net newjobs in the first three months of the year. The unemployment rate heldaround 5%, while the labor participation rate rose four months in a row.

Inflationary pressures picked up in the first quarter as energy pricesstabilized, home prices rose, and wages showed modest improvements.The personal consumption expenditure (PCE) price index, the Fed’s mostfavored metric of inflation, rose 1.7% year‐over‐year ended February 29,2016.

Global commodity price declines deepened early in the year, as thesupply‐demand imbalance remained in focus. Domestic crude oil fell toless than $30 a barrel in February, before staging a comeback andrebounding above $40 a barrel on the possibility of an output freeze bythe Organization of the Petroleum Exporting Countries (OPEC).

The Chinese economy continued to slow, stoking concern that weaknessin the world’s second‐largest economy may negatively impact globalgrowth, but especially emerging market countries — those dependenton commodity exports.

Interest Rates

Interest rates declined in the first quarter, first due to widespreadconcern about the global economy and then later in the quarter afterthe Fed signaled a slower pace of rate increases. The two‐year Treasuryyield fell 33 basis points (0.33%) during the quarter, while the 10‐yearTreasury yield fell 50 basis points (0.50%).

In the money market space, shorter Treasuries posted small declines,but short‐term credit instruments, such as commercial paper and bankcertificates of deposit (CDs) offered unusually wide yield spreads.

Sector Performance

U.S. Treasury indexes posted strong returns for the first quarter, as ratedeclines boosted market values. Longer maturity issues performed best.

Non‐callable federal agency securities performed generally in line withcomparable‐maturity Treasuries.

Corporate yield spreads widened significantly through the middle ofFebruary amid energy‐related weakness and declining corporate profits.Although corporates suffered sharp underperformance through Januaryand much of February, spreads tightened dramatically in March,generating enough outperformance for the sector to surpasscomparable‐maturity Treasuries over the entire quarter.

Mortgage‐backed securities were the worst‐performing sector in thequarter, underperforming Treasuries. They were hurt as declininginterest rates increased anticipated pre‐payments.



Source: Bloomberg

Economic SnapshotLabor Market Dec 2015 Mar 2015

Unemployment Rate Mar'16 5.0% 5.0% 5.5%

Change In Non-Farm Payrolls Mar'16 215,000 271,000 84,000

Average Hourly Earnings (YoY) Mar'16 2.3% 2.6% 2.2%

Personal Income (YoY) Feb'16 4.0% 3.9% 4.0%

Initial Jobless Claims (week) 3/26/16 276,000 285,000 268,000

Growth

Real GDP (QoQ SAAR) 2015Q4 1.4% 2.0% 2.1%

GDP Personal Consumption (QoQ SAAR) 2015Q4 2.4% 3.0% 4.3%

Retail Sales (YoY) Feb'16 3.1% 2.6% 2.1%

ISM Manufacturing Survey (month) Mar'16 51.8 48.0 52.3

Existing Home Sales SAAR (month) Feb'16 5.08 mil. 5.45 mil. 5.25 mil.

Inflation / Prices

Personal Consumption Expenditures (YoY) Feb'16 1.0% 0.7% 0.3%

Consumer Price Index (YoY) Feb'16 1.0% 0.7% -0.1%

Consumer Price Index Core (YoY) Feb'16 2.3% 2.1% 1.8%

Crude Oil Futures (WTI, per barrel) Mar 31 $38.34 $37.04 $47.60

Gold Futures (oz.) Mar 31 $1,234 $1,060 $1,183

1. Data as of Third Quarter 2015 2. Data as of Fourth Quarter 2014

Note: YoY = year over year, QoQ = quarter over quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil

Latest

050K100K150K200K250K300K350K400K

2%

4%

6%

8%

3/31/13 9/30/13 3/31/14 9/30/14 3/31/15 9/30/15 3/31/16

Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right)

Change In Non-Farm PayrollsUnemployment Rate

-2%

0%

2%

4%

6%

12/31/12 6/30/13 12/31/13 6/30/14 12/31/14 6/30/15 12/31/15

Real GDP (QoQ)

-1%

0%

1%

2%

3%

3/31/13 9/30/13 3/31/14 9/30/14 3/31/15 9/30/15

Consumer Price Index

CPI (YoY) Core CPI (YoY)

2

2

1

1



Source: Bloomberg

Investment Rate Overview

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

12/31/15 1/31/16 2/29/16 3/31/16

Yiel

d

U.S. Treasury Note Yields

2-Year 5-Year 10-Year

0%

1%

2%

3%

4%

3-mo

1-yr2-yr3-yr

5-yr

7-yr

10-yr

30-yr

Yiel

d

Maturity

U.S. Treasury Yield Curve

March 31, 2016 December 31, 2015 March 31, 2015

0%

1%

2%

3%

4%

5%

1-yr2-yr3-yr

5-yr

7-yr

10-yr

25-yr

30-yr

Yiel

d

Maturity

Yield Curves as of 3/31/2016

U.S. Treasury Federal Agency Industrial Corporates, A Rated

Maturity 3/31/16 12/31/15Change

over Quarter

3/31/15 Change over Year

3-month 0.20% 0.17% 0.03% 0.02% 0.18%

1-year 0.58% 0.60% (0.02%) 0.23% 0.35%

2-year 0.72% 1.05% (0.33%) 0.56% 0.16%

5-year 1.21% 1.76% (0.55%) 1.37% (0.16%)

10-year 1.77% 2.27% (0.50%) 1.92% (0.15%)

30-year 2.61% 3.02% (0.41%) 2.54% 0.07%

U.S. Treasury Yields



BofA Merrill Lynch Index Returns

Duration Yield 3 Month 1 Year 3 Years

1-3 Year IndicesU.S. Treasury 1.89 0.75% 0.90% 0.92% 0.77%

Federal Agency 1.56 0.80% 0.86% 1.02% 0.86%

U.S. Corporates, A-AAA rated 1.95 1.52% 1.09% 1.48% 1.43%

Agency MBS (0 to 3 years) 2.13 1.41% 0.50% 1.77% 1.37%

Municipals 1.79 0.84% 0.51% 1.01% 0.87%

1-5 Year IndicesU.S. Treasury 2.72 0.89% 1.57% 1.62% 1.14%

Federal Agency 2.06 0.91% 1.26% 1.43% 1.14%



Municipals 2.46 1.00% 0.72% 1.58% 1.27%

Master Indices (Maturities 1 Year or Greater)U.S. Treasury 6.43 1.34% 3.35% 2.42% 2.30%

Federal Agency 3.65 1.26% 2.14% 1.86% 1.75%



Municipals 6.77 2.05% 1.64% 4.12% 3.73%

Returns for periods greater than one year are annualized

Source: BofA Merrill Lynch Indices

Returns for Periods ended 3/31/2016As of 3/31/2016



Disclosures

The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC (PFMAM) at the time of distribution and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, PFMAM cannot guarantee its accuracy, completeness, or suitability. This material is for general information purposes only and is not intended to provide specific advice or recommendation. The information contained in this report is not an offer to purchase or sell any securities. PFMAM is registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. PFMAM’s clients are state and local governments, non‐profit corporations, pension funds, and similar institutional investors. www.pfm.com.

© 2015 PFM Asset Management LLC. Further distribution is not permitted without prior written consent.


TAB II


Executive Summary

PORTFOLIO RECAP

The District’s Capital, Operating, Self Insurance, and Health Insurance Portfolios are of high credit quality and invested in U.S. Treasury, Federal Agency, commercial paper, high quality corporate, and municipal securities.

The Capital, Operating, and Discretionary Sales SurTax Portfolios continue to provide the District with favorable yield relative to the benchmark. At quarter end, the portfolios had a weighted average Yield to Maturity at Cost of 0.56%, exceeding the Yield to Maturity of the benchmark the Merrill Lynch 3 Month U.S. Treasury Bill Index by 42 basis points (0.42%).

The Self-Insurance and Health-Insurance Portfolios’ quarterly total return performances were both 0.93%, outperforming the benchmark performance of 0.90% by 0.03%.

PFM continued to actively manage the Self-Insurance and Health-Insurance Portfolios during the first quarter and found value in the market, taking advantage of market inefficiencies or changes in economic outlook. As a result, the Portfolios realized $3,826 in gains on sales (based on amortized cost) during the quarter. PFM is continually in the market monitoring for opportunities to add value to the Portfolios.

We expect the U.S. economy to expand at a moderate pace in 2016 as consumer spending continues to drive positive growth. Outside the U.S., economic prospects are more challenged due to weak commodity prices, slowing growth in China, and various geopolitical risks. The market's concerns about the strength of the global economy will likely keep interest rates lower than previously expected.

Economic projections released following the FOMC’s March meeting indicated that FOMC participants believe that appropriate monetary policy warrants only two fed funds hikes in 2016, down from four hikes projected in December.

Given the likelihood that rates will not move significantly higher in the near-term, we will position the maturity distribution of portfolios to generally match the distribution of their benchmarks, except where shifting to short-term credit securities offers better value.

Because of narrowed yield spreads, federal agencies currently have less appeal relative to comparable-maturity U.S. Treasuries. We will monitor the yield relationship and take advantage of any opportunities that arise ― opportunities are most likely to occur with newly-issued federal agency securities.

PFM will continue to navigate the market environment with a keen focus on relative value sector analysis, prudent duration management, and efficient yield curve placement. While producing strong investment returns remains a priority, it is secondary to maintaining safety and liquidity, particularly in the current environment where we expect yields to trend higher.

PFM Asset Management LLC Section B - 1


Portfolio Statistics

Amortized Cost1,2,3 Amortized Cost1,2,3 Market Value1,2,3 Market Value1,2,3 Duration (Years)Account Name March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 March 31, 2016

Capital Short Term Fund $63,256,783.83 $51,788,528.37 $63,287,110.84 $51,781,075.27 0.36Capital - Florida Education Investment Trust Fund 11,284,287.63 10,826,854.43 11,284,287.63 10,826,854.43 0.02Operating Short Term Fund 99,089,873.85 121,189,781.07 99,171,299.03 121,194,258.11 0.33Operating - Florida Education Investment Trust Fund 20,215,989.45 9,737,034.42 20,215,989.45 9,737,034.42 0.02Discretionary Sales Surtax Account 28,034,980.39 15,009,404.49 28,086,761.42 15,003,427.44 1.55Discretionary Sales Surtax - Florida Education Investment Trust Fund 6,365,040.64 8,491,020.83 6,365,040.64 8,491,020.83 0.02Total $228,246,955.79 $217,042,623.61 $228,410,489.01 $217,033,670.50

Yield to Maturity Yield to Maturity Yield to Maturity Yield to Maturityat Cost4 at Cost4 at Market at Market Duration (Years)

Account Name March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 December 31, 2015 Capital Short Term Fund 0.60% 0.46% 0.48% 0.52% 0.34Capital - Florida Education Investment Trust Fund5 N/A N/A N/A N/A 0.02Operating Short Term Fund 0.64% 0.61% 0.40% 0.59% 0.51Operating - Florida Education Investment Trust Fund5 N/A N/A N/A N/A 0.02Discretionary Sales Surtax Account 0.91% 0.24% 0.79% 0.40% 0.24Discretionary Sales Surtax - Florida Education Investment Trust Fund N/A N/A N/A N/A 0.02Average Weighted Yield 0.56% 0.47% 0.40% 0.48%

Benchmarks March 31, 2016 December 31, 2015

Merrill Lynch 3 Month U.S. Treasury Bill Index6 0.14% 0.07%

Notes:

1. End of quarter trade-date market values of portfolio holdings, including accrued interest.

2. In order to comply with GASB accrual accounting reporting requirements; forward settling trades are included in the monthly balances.

3. Includes money market fund/cash balances held in custodian account.

4. Past performance is not indicative of future results.

6. Due to its excessive concentration in Corporate Instruments, the SBA is no longer a suitable benchmark, therefore; we are utilizing the 3 Month U.S. Treasury Bill Index at this time, as it represents a risk-free benchmark.

5. Seven day yield as of quarter end. The yields shown above represent past performance. Past performance is no guarantee of future results and yields may vary. The current fund performance may be higher or lower than that cited. The current seven-day yield does not include realized gains and losses on the sale of securities. The yields shown above may reflect fee waivers by service providers that subsidize and reduce the total operating expenses of the Funds. Fund yields would be lower if there were no such waivers.

PFM Asset Management LLC Section B - 2


Capital Short Term Fund Composition and Credit Quality Characteristics

Security Type1 March 31, 2016 % of Portfolio December 31, 2015 % of Portfolio

U.S. Treasuries $14,217,734.09 19.1% $22,274,741.34 35.6%

Federal Agencies 14,993,932.05 20.1% 7,989,762.56 12.8%

Commercial Paper 24,146,860.20 32.4% 19,153,602.40 30.6%

Certificates of Deposit 0.00 0.0% 0.00 0.0%

Bankers Acceptances 0.00 0.0% 0.00 0.0%

Repurchase Agreements 0.00 0.0% 0.00 0.0%

Municipal Obligations 0.00 0.0% 0.00 0.0%

Corporate Notes/Bonds 0.00 0.0% 0.00 0.0%

Florida Education Investment Trust Fund 11,284,287.63 15.1% 10,826,854.43 17.3%

Money Market Fund/Cash 9,928,584.50 13.3% 2,362,968.97 3.8%

Totals $74,571,398.47 100.0% $62,607,929.70 100.0%

Notes:


2. Credit rating of securities held in portfolio, exclusive of money market fund/LGIP. Standard & Poor's is the source of the credit ratings.

U.S. Treasuries19.07%

Federal Agency Obligations

20.11%

Commercial Paper

32.38%

Florida Education Investment Trust Fund

15.13%

Money Market Fund/Cash

13.31%

Portfolio Compositionas of 03/31/16

AA+22.16%

A-1+ (Short-term)

36.29%

A-1 (Short-term)

13.11%

AAAm28.45%

Credit Quality Distribution² as of 03/31/16

PFM Asset Management LLC Section C - 1


Capital Short Term Fund Maturity Distribution

Maturity Distribution1 March 31, 2016 December 31, 2015

Overnight (Money Market Fund) $21,212,872.13 $13,189,823.40

Under 6 Months 39,584,044.89 49,418,106.30

6 - 12 Months 11,468,152.51 0.00

1 - 2 Years 0.00 0.00

2 - 3 Years 2,306,328.94 0.00

3 - 4 Years 0.00 0.00

4 - 5 Years 0.00 0.00

5 Years and Over 0.00 0.00

Totals $74,571,398.47 $62,607,929.70

3. Includes money market fund/cash balances held in custodian account.

Notes:

1. Callable securities in portfolio are included in the maturity distribution analysis to their stated maturity date, although they may be called prior to maturity.

28.4%

53.1%

15.4%

0.0% 3.1% 0.0% 0.0% 0.0%

21.1%

78.9%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Overnight Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5 Years and Over

Per

cent

age

of T

otal

Por

tfolio

Portfolio Maturity Distribution¹

March 31, 2016

December 31, 2015

PFM Asset Management LLC Section C - 2


Operating Short Term Fund Composition and Credit Quality Characteristics


U.S. Treasuries $82,093,681.93 68.8% $82,035,957.86 62.7%

Federal Agencies 0.00 0.0% 9,995,311.80 7.6%

Commercial Paper 17,077,617.10 14.3% 19,952,355.00 15.2%







Money Market Fund/Cash 0.00 0.0% 9,210,633.45 7.0%

Totals $119,387,288.48 100.0% $130,931,292.53 100.0%

Notes:



U.S. Treasuries

68.76%

Commercial Paper

14.30%


16.93%


AA+68.76%

A-1 (Short-term)

14.30%

AAAm16.93%


PFM Asset Management LLC Section D - 1


Operating Short Term Fund Maturity Distribution



Under 6 Months 77,211,242.69 60,025,245.97

6 - 12 Months 21,960,056.34 51,958,378.69

1 - 2 Years 0.00 0.00

2 - 3 Years 0.00 0.00

3 - 4 Years 0.00 0.00

4 - 5 Years 0.00 0.00


Totals $119,387,288.48 $130,931,292.53

Notes:


16.9%

64.7%

18.4%

0.0% 0.0% 0.0% 0.0% 0.0%

14.5%

45.8%39.7%

0.0% 0.0% 0.0% 0.0% 0.0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Per

cent

age

of T

otal

Por

tfolio


March 31, 2016December 31, 2015

PFM Asset Management LLC Section D - 2


Discretionary Sales SurTax Account Composition and Credit Quality Characteristics


U.S. Treasuries $14,975,484.79 43.5% $0.00 0.0%

Federal Agencies 0.00 0.0% 14,985,322.95 63.8%

Commercial Paper 12,967,506.50 37.6% 0.00 0.0%







Money Market Fund/Cash 143,770.13 0.4% 18,104.49 0.1%

Totals $34,451,802.06 100.0% $23,494,448.27 100.0%

Notes:



U.S. Treasuries

43.47%

Commercial Paper

37.64%


18.48%


0.42%


AA+43.47%

A-1 (Short-term)

37.64%

AAAm18.89%


PFM Asset Management LLC Section E - 1


Discretionary Sales SurTax Account Maturity Distribution



Under 6 Months 12,967,506.50 14,985,322.95

6 - 12 Months 0.00 0.00

1 - 2 Years 2,007,398.64 0.00

2 - 3 Years 6,899,603.19 0.00

3 - 4 Years 2,043,370.80 0.00

4 - 5 Years 4,025,112.16 0.00


Totals $34,451,802.06 $23,494,448.27

Notes:


18.9%

37.6%

0.0%5.8%

20.0%

5.9%11.7%

0.0%

36.2%

63.8%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Per

cent

age

of T

otal

Por

tfolio



PFM Asset Management LLC Section E - 2


Self Insurance Fund Portfolio PerformanceTotal Portfolio Value1 March 31, 2016 December 31, 2015Market Value $15,000,035.47 $14,861,475.85Amortized Cost $14,936,862.90 $14,898,296.97

Quarterly Return Last Last Last Last Since InceptionTotal Return2,3,4 March 31, 2016 12 Months 2 Years 5 Years 10 Years September 30, 2001Self Insurance Fund Portfolio 0.93% 1.08% 1.03% 0.96% 2.62% 2.62%Merrill Lynch 1-3 Year U.S. Treasury Note Index 0.90% 0.92% 0.96% 0.87% 2.47% 2.49%

Effective Duration (Years)4,5 March 31, 2016 December 31, 2015 Yields March 31, 2016 December 31, 2015Self Insurance Fund Portfolio 1.80 1.70 Yield at Market 0.81% 1.10%Merrill Lynch 1-3 Year U.S. Treasury Note Index 1.82 1.80 Yield at Cost 1.01% 0.97%Portfolio Duration % of Benchmark Duration 99% 95%

Notes:

1. In order to comply with GASB accrual accounting reporting requirements; forward settling trades are included in the monthly balances. End of quarter trade-date market values of portfolio holdings, including accrued interest.

4. Merrill Lynch Indices provided by Bloomberg Financial Markets.

5. Includes money market fund/cash in performance and duration computations.

2. Performance on trade date basis, gross (i.e., before fees), is in accordance with The CFA Institute’s Global Investment Performance Standards (GIPS). Quarterly returns are presented on an unannualized basis. Returns presented for 12 months or longer are presented on an annual basis. Past performance is not indicative of future results.

3. Since inception the benchmark has been the Merrill Lynch 1-3 Year U.S. Treasury Note Index.

0.93% 0.90%

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.00 1.50 2.00 2.50 3.00

Ret

urn

Effective Duration (Years)

Quarter Total Return Comparison Quarter Ended 03/31/16

ML 1-3 Year U.S. Treasury Note Index

Self Insurance Fund

2.62%

2.49%

2.25%

2.50%

2.75%

3.00%

1.00 1.50 2.00 2.50 3.00R

etur

nEffective Duration (Years)

Since Inception Total Return Comparison Period Ended 03/31/16

Self Insurance Fund


PFM Asset Management LLC Section F - 1


Self Insurance Fund Portfolio Composition and Credit Quality Characteristics


U.S. Treasuries $9,269,238.59 61.8% $9,449,088.30 63.6%


Commercial Paper 0.00 0.0% 0.00 0.0%




Municipal Obligations 426,145.32 2.8% 776,118.41 5.2%

Corporate Notes/Bonds 2,766,197.22 18.4% 2,841,441.05 19.1%

Mortgage Backed 0.00 0.0% 0.00 0.0%


Totals $15,000,035.47 100.0% $14,861,475.85 100.0%

Notes:



U.S. Treasuries61.79%

Federal Agency

Obligations16.26%

Municipal Obligations

2.84%

Corporate Notes/Bonds

18.44%


0.66%


AA+81.75%

AA3.45%

AA-4.03%

A4.04%

A-6.06%

AAAm0.66%




Self Insurance Fund Portfolio Maturity Distribution


Overnight (Money Market Fund) $99,638.51 $75,819.16

Under 6 Months 1,235,731.34 776,118.41

6 - 12 Months 584,947.67 817,821.52

1 - 2 Years 5,458,314.49 6,885,630.94

2 - 3 Years 6,681,452.89 4,849,456.11

3 - 4 Years 939,950.57 1,456,629.71

4 - 5 Years 0.00 0.00


Totals $15,000,035.47 $14,861,475.85

Notes:


0.7%8.2%

3.9%

36.4%44.5%

6.3%0.0% 0.0%0.5%

5.2% 5.5%

46.3%

32.6%

9.8%

0.0% 0.0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Per

cent

age

of T

otal

Por

tfolio





Self Insurance Fund Maturity Distribution versus the Benchmark¹

Notes:

1. Due to the nature of the security, Mortgage-Backed Securities are represented based on their average life maturity rather than their final maturity.

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Mar

ket V

alue

Years to Maturity

Self Insurance Fund Merrill Lynch 1-3 Year U.S. Treasury Note Index



Health Insurance Fund Portfolio PerformanceTotal Portfolio Value1 March 31, 2016 December 31, 2015Market Value $12,436,353.24 $12,322,231.21Amortized Cost $12,386,687.32 $12,354,883.46

Quarterly Return Last Last Last Last Since InceptionTotal Return2,3,4 March 31, 2016 12 Months 2 Years 3 Years 5 Years September 30, 2007Health Insurance Fund 0.93% 1.07% 1.02% 0.80% 0.97% 2.10%Merrill Lynch 1-3 Year U.S. Treasury Note Index 0.90% 0.92% 0.96% 0.77% 0.87% 1.93%

Effective Duration (Years)4,5 March 31, 2016 December 31, 2015 Yields March 31, 2016 December 31, 2015Health Insurance Fund 1.80 1.74 Yield at Market 0.81% 1.11%Merrill Lynch 1-3 Year U.S. Treasury Note Index 1.82 1.80 Yield at Cost 1.01% 0.96%Portfolio Duration % of Benchmark Duration 99% 97%

Notes:

1. In order to comply with GASB accrual accounting reporting requirements; forward settling trades are included in the monthly balances. End of quarter trade-date market values of portfolio holdings, including accrued interest.

4. Merrill Lynch Indices provided by Bloomberg Financial Markets.

5. Includes money market fund/cash in performance and duration computations.

2. Performance on trade date basis, gross (i.e., before fees), is in accordance with The CFA Institute’s Global Investment Performance Standards (GIPS). Quarterly returns are presented on an unannualized basis. Returns presented for 12 months or longer are presented on an annual basis. Past performance is not indicative of future results.

3. Since inception the benchmark has been the Merrill Lynch 1-3 Year U.S. Treasury Note Index.

0.93%0.90%

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.00 1.50 2.00 2.50 3.00

Ret

urn


Quarter Total Return Comparison Quarter Ended 03/31/16


Health Insurance Fund

2.10%

1.93%

1.50%

1.75%

2.00%

2.25%

2.50%

1.00 1.50 2.00 2.50 3.00R

etur

n


Since Inception Total Return Comparison Period Ended 03/31/16

Health Insurance Fund


PFM Asset Management LLC Section G - 1


Health Insurance Fund Portfolio Composition and Credit Quality Characteristics


U.S. Treasuries $7,639,439.17 61.4% $7,707,705.26 62.6%


Commercial Paper 0.00 0.0% 0.00 0.0%




Municipal Obligations 350,954.82 2.8% 650,958.45 5.3%

Corporate Notes/Bonds 2,352,148.23 18.9% 2,418,187.30 19.6%

Mortgage Backed 0.00 0.0% 0.00 0.0%


Totals $12,436,353.24 100.0% $12,322,231.21 100.0%

Notes:



U.S. Treasuries

61.43%

Federal Agency

Obligations16.25%

Municipal Obligations

2.82%

Corporate Notes/Bonds

18.91%


0.58%


AA+81.33%

AA3.47%

AA-4.05%

A4.47%

A-6.09%

AAAm0.58% Credit Quality Distribution²

as of 03/31/16



Health Insurance Fund Portfolio Maturity Distribution


Overnight (Money Market Fund) $72,750.48 $56,362.27

Under 6 Months 1,059,159.14 650,958.45

6 - 12 Months 394,461.16 715,247.82

1 - 2 Years 4,484,919.04 5,648,254.54

2 - 3 Years 5,766,076.33 4,030,852.90

3 - 4 Years 658,987.09 1,220,555.23

4 - 5 Years 0.00 0.00


Totals $12,436,353.24 $12,322,231.21

Notes:


0.6%

8.5%3.2%

36.1%

46.4%

5.3%0.0% 0.0%0.5%

5.3% 5.8%

45.8%

32.7%

9.9%

0.0% 0.0%0%

10%

20%

30%

40%

50%

60%

70%


Perc

enta

ge o

f Tot

al P

ortfo

lio





Health Insurance Fund Maturity Distribution versus the Benchmark¹

Notes:

1. Due to the nature of the security, Mortgage-Backed Securities are represented based on their average life maturity rather than their final maturity.

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Mar

ket V

alue

Years to Maturity

Health Insurance Fund Merrill Lynch 1-3 Year U.S. Treasury Note Index



TAB III

Brevard County School District Asset Allocation as of March 31, 2016

Security Type1Amortized Cost

(Includes Interest)Allocation

Percentage NotesPermitted by Policy

In Compliance

Florida Prime (SBA) - 0.00% 0% YESUnited States Treasury Securities 127,995,806.03 50.08% 100% YESUnited States Government Agency Securities - 0.00% 50% YESFederal Instrumentalities 19,408,323.13 7.59% 2 80% YESMortgage-Backed Securities - 0.00% 2,3 20% YESCertificates of Deposit or Savings Account - 0.00% 25% YESRepurchase Agreements - 0.00% 50% YESCommercial Paper 54,176,704.02 21.20% 35% YESCorporate Notes 5,102,435.14 2.00% 20% YESBankers' Acceptances - 0.00% 35% YESState and/or Local Government Debt 777,176.35 0.30% 20% YESMoney Market Mutual Funds 10,244,743.62 4.01% 75% YESFlorida Education Investment Trust Fund 37,865,317.72 14.82% 25% YESNotes:1. End of month trade-date amortized cost of portfolio holdings, including accrued interest. 2. The combined total of Federal Instrumentalities and Mortgage Backed Securities can not be more than 80%. The combined total as of March 31, 2016 is 7.59%.

© PFM Asset Management LLC H - 1

3. The Investment Policy does allow for Government and Federal Agency mortgage backed securities (MBS'). Which is limited to GNMA, FHLMC, and FNMA mortgage backed securities. GNMA securities have the full faith and credit of the United States Treasury. As of September 6, 2008, FHLMC and FNMA have been under conservatorship with the United States Treasury. PFM has imposed an internal maximum allocation limit of 20% in MBS'. PFM will notify the School District prior to adding MBS' to the portfolio.

United States Treasury Securities

50.08%

Federal Instrumentalities

7.59%Commercial Paper 21.20%

Corporate Notes 2.00%

State and/or Local Government Debt

0.30%

Money Market Mutual Funds

4.01%

Florida Education Investment Trust

Fund14.82%

Brevard County School District Asset Allocation as of March 31, 2016

Individual Issuer BreakdownAmortized Cost

(Includes Interest)Allocation

Percentage NotesPermitted by Policy

In Compliance

Government National Mortgage Association (GNMA) - 0.00% 25% YESFederal Farm Credit Bank (FFCB) - 0.00% 40% YESFederal Home Loan Bank (FHLB) 5,468,606.20 2.14% 40% YESFederal National Mortgage Association (FNMA) 12,445,026.18 4.87% 40% YESFederal Home Loan Mortgage Corporation (FHLMC) 1,494,690.75 0.58% 40% YESRegional Transportation Authority Municipal Bonds 676,833.71 0.26% 20% YESUniversity of California Municipal Bonds 100,342.64 0.04% 20% YESAmerican Express Company Corporate Notes 651,243.91 0.25% 5% YESBank of New York Company Inc. Corporate Notes 653,683.81 0.26% 5% YESBerkshire Hathaway, Inc. Corporate Notes 170,044.72 0.07% 5% YESCaterpillar, Inc. Corporate Notes 504,067.74 0.20% 5% YESGeneral Electric Capital Corporation Corporate Notes 1,006,682.86 0.39% 5% YESJP Morgan Chase & Company Corporate Notes 1,013,363.25 0.40% 5% YESToyota Motor Corporation Corporate Notes 1,103,348.85 0.43% 5% YESBank of Tokyo Mitsubishi, Inc. Commercial Paper 16,253,916.03 6.36% 10% YESBNP Paribas Commercial Paper 13,567,947.37 5.31% 10% YESJP Morgan Chase & Company Commercial Paper 9,983,986.10 3.91% 10% YESToyota Motor Corporation Commercial Paper 14,370,854.52 5.62% 10% YESMoney Market Fund - STIF 10,244,743.62 4.01% 25% YESFlorida Education Investment Trust Fund 37,865,317.72 14.82% 25% YES

© PFM Asset Management LLC H - 2

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