Palm Beach County School District

Transcription

1 Palm Beach County School District Investment Performance Review Quarter Ended June 30, 2016 Investment Advisors Steven Alexander, CTP, CGFO, CPPT, Managing Director Robert Cheddar, CFA, Chief Credit Officer, Managing Director D. Scott Stitcher, CFA, Director Richard Pengelly, CFA, CTP, Director Rebecca Geyer, CTP, Senior Analyst PFM Asset Management LLC One Keystone Plaza, Suite 300 North Front & Market Streets Harrisburg, PA fax 300 S. Orange Avenue, Suite 1170 Orlando, FL (407) (407) fax 2016 PFM Asset Management LLC Page 1 of 51

2 TABLE OF CONTENTS Tab I Market Update Tab II Executive Summary Investment Portfolio and Trade Analysis Short Term Portfolio Tab III Asset Allocation Chart Important Disclosures 2016 PFM Asset Management LLC Page 2 of 51

3 Tab I 2016 PFM Asset Management LLC Page 3 of 51

4 MARKET UPDATE Summary On June 23, the British public voted to leave the European Union (EU) so-called Brexit referendum after fortythree years of membership. This historic vote was the first of its kind, shocking markets and triggering outsized market reactions. Bond yields fell sharply, sending 10- and 30-year Treasury yields to all-time lows. Equity indexes saw a sharp pullback following the vote, but pared losses by month-end amid anticipated central bank accommodation. Meanwhile, the British pound fell to its lowest level since 1985 against the U.S. dollar. Amid the uncertainty caused by Brexit, central banks around the world are expected to remain accommodative, keeping rates lower for longer and seemingly boosting equity prices despite the potential slowdown of British and European economies. The Federal Reserve (Fed) left policy rates unchanged at both its second-quarter meetings. In June, even before the Brexit vote, the Federal Open Market Committee (FOMC) once again lowered its expectation for rate hikes in 2016 via the so-called dot plot. By quarter-end, the market was pricing in a 0% chance of a rate hike in July, and less than a 10% chance for a hike this year. Economic Snapshot The modest U.S. economic expansion continued, and unemployment ended the quarter below 5%. However, measures of economic strength in the U.S. remained mixed. U.S. gross domestic product (GDP) grew at a 1.1% rate in the first quarter of 2016, driven by improving trade and business investment, which more than compensated for weakness in consumer spending. Economic growth is expected to rebound in the second quarter to around 2.5%, with a preliminary reading to be released in late July. Job growth decelerated for four straight months before a sharp rebound in June. The U.S. economy added 287,000 jobs in June, the largest gain since October Year-to-date, the economy added over 1 million jobs, but it is nearly 300,000 behind last year s pace. The unemployment rate ended the quarter at 4.9% PFM Asset Management LLC Page 4 of 51

5 MARKET UPDATE Inflation pressures remained relatively unchanged in the second quarter as the personal consumption expenditure (PCE) price index, the Fed s favored metric of inflation, rose 1.6% for the year ended May. Oil prices settled into a $40 to $50 per barrel range, while home prices rose 5.4% year-over-year. Average hourly earnings, an important measure ofwages, grew 2.6% over the past 12 months, matching a nearly 7-year high. Interest Rates Interest rates ended the quarter significantly lower amid the Fed s dovish tone during the quarter and the flight to safety stimulated by the Brexit vote. Declines were led by longer maturity yields, flattening the yield curve. The spread between the two-year and 10-year Treasury yields fell to 89 basis points (0.89%) compared to 105 basis points (1.05%) at the end of the first quarter. The two-year Treasury yield fell 14 basis points (0.14%) during the quarter, while the yield onthe 10-year Treasury fell 30 basis points (0.30%). In the money market space, shorter Treasuries posted modest increases, while short-term credit instruments, like commercial paper and bank certificates of deposit (CDs), continued to offer unusually wide yield spreads. Sector Performance U.S. Treasury indexes posted another quarter of strong returns as rate declines boosted market values. Because the yield curve flattened, longer maturity issues performed best. Non-callable federal agency securities performed generally in line with comparable maturity Treasuries. Corporate yield spreads tightened throughout most of the second quarter as credit conditions stabilized from the first quarter s energy price-driven volatility. Post Brexit, corporates experienced a brief spike in spreads, but quickly recovered by quarter end. The sector generated strong outperformance relative to Treasuries, adding to its 2016 return advantage. Mortgage-backed securities underperformed Treasuries for the second straight quarter. Declining interest rates, which drove accelerated prepayment expectations, continued to hurt the sector PFM Asset Management LLC Page 5 of 51

6 MARKET UPDATE Economic Snapshot Labor Market Latest Mar 2016 Jun 2015 Unemployment Rate Jun'16 4.9% 5.0% 5.3% Change In Non-Farm Payrolls Jun'16 287, , ,000 Average Hourly Earnings (YoY) Jun'16 2.6% 2.3% 2.0% Personal Income (YoY) May'16 4.0% 4.6% 4.6% Initial Jobless Claims (week) 7/1/16 254, , ,000 8% 6% 4% Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right) Change In Non-Farm Payrolls Unemployment Rate 2% 6/30/13 12/31/13 6/30/14 12/31/14 6/30/15 12/31/15 6/30/16 400K 350K 300K 250K 200K 150K 100K 50K 0 Growth Real GDP (QoQ SAAR) 2016Q1 1.1% 1.4% 0.6% GDP Personal Consumption (QoQ SAAR) 2016Q1 1.5% 2.4% 1.8% Retail Sales (YoY) May'16 2.5% 1.7% 2.1% % 4% 2% Real GDP (QoQ) ISM Manufacturing Survey (month) Jun' Existing Home Sales SAAR (month) May' mil mil mil. 0% -2% 3/31/13 9/30/13 3/31/14 9/30/14 3/31/15 9/30/15 3/31/16 Inflation / Prices Personal Consumption Expenditures (YoY) May'16 0.9% 0.8% 0.3% Consumer Price Index (YoY) May'16 1.0% 0.9% 0.1% Consumer Price Index Core (YoY) May'16 2.2% 2.2% 1.8% 3% 2% 1% Consumer Price Index CPI (YoY) Core CPI (YoY) Crude Oil Futures (WTI, per barrel) Jun 30 $48.33 $38.34 $59.47 Gold Futures (oz.) Jun 30 $1,321 $1,234 $1,172 0% -1% 6/30/13 12/31/13 6/30/14 12/31/14 6/30/15 12/31/15 1. Data as of Fourth Quarter Data as of First Quarter 2015 Note: YoY = year over year, QoQ = quarter over quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil 2016 PFM Asset Management LLC Page 6 of 51

7 MARKET UPDATE Investment Rate Overview 2.5% U.S. Treasury Note Yields 4% U.S. Treasury Yield Curve 2.0% 3% Yield 1.5% 1.0% Yield 2% 1% 0.5% 0.0% 3/31/16 4/30/16 5/31/16 6/30/16 2-Year 5-Year 10-Year 0% 3-yr 2-yr 1-yr 3-mo 5-yr 7-yr 10-yr Maturity June 30, 2016 March 31, 2016 June 30, yr Maturity 6/30/16 3/31/16 U.S. Treasury Yields Change over Quarter 6/30/15 Change over Year 3-month 0.26% 0.20% 0.06% 0.01% 0.25% 4% 3% Yield Curves as of 6/30/ year 0.44% 0.58% (0.14%) 0.27% 0.17% 2-year 0.58% 0.72% (0.14%) 0.65% (0.07%) 5-year 1.00% 1.21% (0.21%) 1.65% (0.65%) 10-year 1.47% 1.77% (0.30%) 2.35% (0.88%) 30-year 2.29% 2.61% (0.32%) 3.12% (0.83%) Yield 2% 1% 0% 3-yr 2-yr 1-yr 5-yr 7-yr 10-yr Maturity U.S. Treasury Federal Agency Industrial Corporates, A Rated 25-yr 30-yr Source: Bloomberg 2016 PFM Asset Management LLC Page 7 of 51

8 MARKET UPDATE BofA Merrill Lynch Index Returns 1-3 Year Indices U.S. Treasury % 0.53% 1.31% 0.98% Federal Agency % 0.41% 1.27% 1.04% U.S. Corporates, A-AAA rated % 0.83% 2.24% 1.79% Agency MBS (0 to 3 years) % 0.65% 2.50% 1.92% Taxable Municipals % 1.38% 3.71% 2.21% 1-5 Year Indices U.S. Treasury % 0.81% 2.43% 1.65% Federal Agency % 0.59% 1.94% 1.59% U.S. Corporates, A-AAA rated % 1.14% 3.32% 2.74% Agency MBS (0 to 5 years) % 1.02% 3.37% 3.01% Taxable Municipals % 1.78% 4.88% 3.01% Master Indices (Maturities 1 Year or Greater) As of 6/30/2016 Returns for Periods ended 6/30/2016 Duration Yield 3 Month 1 Year 3 Years U.S. Treasury % 2.24% 6.67% 3.83% Federal Agency % 1.34% 3.92% 2.89% U.S. Corporates, A-AAA rated % 2.90% 7.89% 5.37% Agency MBS (0 to 30 years) % 1.12% 4.38% 3.73% Taxable Municipals % 2.61% 7.12% 4.25% Returns for periods greater than one year are annualized Source: BofA Merrill Lynch Indices 2016 PFM Asset Management LLC Page 8 of 51

9 Tab II 2016 PFM Asset Management LLC Page 9 of 51

10 EXECUTIVE SUMMARY The Portfolios are of high credit quality and invested in U.S. Treasury, Federal Agency, municipal obligations, corporate notes and commercial paper securities. The Investment Portfolio s quarterly total return performance of 0.48% underperformed the benchmark performance of 0.53% by 0.05%. For the last 12 months the Portfolio returned 1.40% versus the benchmark s return of 1.31%. PFM continued to actively manage the Investment Portfolio during the second quarter and found value in the market, taking advantage of market inefficiencies or changes in economic outlook. As a result, the Portfolio realized $15,623 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 Portfolio. The Short Term Portfolio s quarter ending yield to maturity at cost of 0.72% outperformed the benchmark s yield of 0.26% by 0.46%. 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 Page 10 of 51

11 PALM BEACH CNTY FL S/D Credit Quality (S&P Ratings) Sector Allocation Portfolio Snapshot Portfolio Statistics As of June 30, 2016 AA 5.0% AA- 7.5% Corporate 12.9% Federal Agency/GSE 23.3% Par Value: 48,070,000 Total Market Value: 48,606,411 Security Market Value: 48,475,144 Accrued Interest: 131,267 Cash: - PFM - Amortized Cost: 48,153,674 Yield at Market: 0.68% Yield at Cost: 1.04% Effective Duration: 1.83 Years Duration to Worst: 1.83 Years Average Maturity: 1.86 Years Average Credit: ** AA AA+ 87.5% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 10.3% 41.5% Maturity Distribution 43.2% U.S. Treasury 61.7% 0-1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years 5.0% 0.0% 0.0% Municipal 2.1% ** An average of each security s credit rating assigned a numeric value and adjusted for its relative weighting in the portfolio PFM Asset Management LLC Page 11 of 51 Account

12 PALM BEACH CNTY FL S/D Portfolio Performance Portfolio/Benchmark Portfolio Performance (Total Return) Effective Duration Current Quarter 1 Year 3 Year 5 Year Annualized Return 10 Year Since Inception (12/31/98) ** PALM BEACH CNTY FL S/D % 1.40% 1.03% 0.90% 2.70% 3.34% BofA ML 1-3 Year U.S. Treasury Index % 1.31% 0.98% 0.81% 2.46% 3.14% Difference -0.05% 0.09% 0.05% 0.09% 0.24% 0.20% 3.5% 3.0% 2.5% 2.70% 2.46% 3.34% 3.14% Total Return 2.0% 1.5% 1.0% 0.5% 0.48% 0.53% 1.40% 1.31% 1.03% 0.98% 0.90% 0.81% 0.0% Current Quarter 1 Year 3 Year 5 Year 10 Year Since Inception PALM BEACH CNTY FL S/D BofA ML 1-3 Year U.S. Treasury Index Portfolio performance is gross of fees unless otherwise indicated. **Since Inception performance is not shown for periods less than one year PFM Asset Management LLC Page 12 of 51 Account

13 PALM BEACH CNTY FL S/D Portfolio Performance Portfolio/Benchmark Portfolio Performance (Total Return) Effective Duration Quarter Ended 06/30/16 03/31/16 12/31/15 09/30/15 1 Year 3 Year Annualized Return 5 Year PALM BEACH CNTY FL S/D % 0.95% -0.35% 0.31% 1.40% 1.03% 0.90% BofA ML 1-3 Year U.S. Treasury Index % 0.90% -0.44% 0.31% 1.31% 0.98% 0.81% Difference -0.05% 0.05% 0.09% 0.00% 0.09% 0.05% 0.09% 1.6% 1.40% 1.31% Total Return 1.2% 0.8% 0.4% 0.0% 0.48% 0.53% 0.95% 0.90% 0.31% 0.31% 1.03% 0.98% 0.90% 0.81% -0.4% -0.8% -0.35% -0.44% 06/30/16 03/31/16 12/31/15 09/30/15 1 Year 3 Year 5 Year PALM BEACH CNTY FL S/D BofA ML 1-3 Year U.S. Treasury Index Portfolio performance is gross of fees unless otherwise indicated PFM Asset Management LLC Page 13 of 51 Account

14 PALM BEACH CNTY FL S/D Portfolio Performance Portfolio Performance (Total Return) Quarter Ended Effective Portfolio/Benchmark Duration 06/30/16 03/31/16 12/31/15 09/30/15 1 Year 3 Year Annualized Return 5 Year PALM BEACH CNTY FL S/D % 0.95% -0.35% 0.31% 1.40% 1.03% 0.90% Net of Fees ** % 0.93% -0.37% 0.29% 1.33% 0.96% 0.83% BofA ML 1-3 Year U.S. Treasury Index % 0.90% -0.44% 0.31% 1.31% 0.98% 0.81% Difference (Gross) -0.05% 0.05% 0.09% 0.00% 0.09% 0.05% 0.09% Difference (Net) -0.07% 0.03% 0.07% -0.02% 0.02% -0.02% 0.02% 1.6% 1.40% 1.31% Total Return 1.2% 0.8% 0.4% 0.0% 0.48% 0.53% 0.95% 0.90% 0.31% 0.31% 1.03% 0.98% 0.90% 0.81% -0.4% -0.8% -0.35% -0.44% 06/30/16 03/31/16 12/31/15 09/30/15 1 Year 3 Year 5 Year PALM BEACH CNTY FL S/D BofA ML 1-3 Year U.S. Treasury Index Portfolio performance is gross of fees unless otherwise indicated. ** Fees were calculated based on average assets during the period at the contractual rate PFM Asset Management LLC Page 14 of 51 Account

15 PALM BEACH CNTY FL S/D Portfolio Performance Portfolio Earnings Quarter-Ended June 30, 2016 Beginning Value (03/30/2016) Market Value Basis $48,444, Accrual (Amortized Cost) Basis $48,214, Net Purchases/Sales ($70,418.46) ($70,418.46) Change in Value $101, $9, Ending Value (06/30/2016) $48,475, $48,153, Interest Earned Portfolio Earnings $130, $231, $130, $140, PFM Asset Management LLC Account Page 15 of 51

16 PALM BEACH CNTY FL S/D Portfolio Composition Sector Allocation As of June 30, 2016 Sector Market Value ($) % of Portfolio U.S. Treasury 29,928, % Federal Agency/GSE 11,295, % Corporate 6,248, % Corporate 12.9% Federal Agency/GSE 23.3% Municipal 1,002, % Total 48,475, % U.S. Treasury 61.7% Municipal 2.1% Detail may not add to total due to rounding PFM Asset Management LLC Page 16 of 51 Account

17 PALM BEACH CNTY FL S/D Portfolio Composition Sector Allocation As of June 30, 2016 Sector Market Value ($) % of Portfolio % of Benchmark U.S. Treasury Federal Agency/GSE Corporate Municipal Total 29,928,963 11,295,017 6,248,875 1,002, % 23.3% 12.9% 2.1% 100.0% ,475, % 100.0% 100% 100.0% 80% 60% 61.7% 40% 20% 12.9% 23.3% 0% 0.0% 0.0% 2.1% 0.0% Corporate Federal Agency/GSE Municipal U.S. Treasury PALM BEACH CNTY FL S/D BofA ML 1-3 Year U.S. Treasury Index Detail may not add to total due to rounding PFM Asset Management LLC Page 17 of 51 Account

18 PALM BEACH CNTY FL S/D Portfolio Composition Sector Sector Allocation June 30, 2016 March 30, 2016 December 30, 2015 September 30, 2015 MV ($MM) % of Total MV ($MM) % of Total MV ($MM) % of Total MV ($MM) % of Total U.S. Treasury % % % % Federal Agency/GSE % % % % Corporate % % % % Municipal % % % % Total $ % $ % $ % $ % 100% 90% 80% 70% Municipal Corporate Federal Agency/GSE U.S. Treasury 60% 50% 40% 30% 20% 10% 0% June 2016 March 2016 December 2015 September 2015 Detail may not add to total due to rounding PFM Asset Management LLC Page 18 of 51 Account

19 PALM BEACH CNTY FL S/D Portfolio Composition Maturity Distribution As of June 30, 2016 Portfolio/Benchmark Yield at Market Average Maturity 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years >5 Years PALM BEACH CNTY FL S/D 0.68% 1.86 yrs 10.3% 41.5% 43.2% 5.0% 0.0% 0.0% BofA ML 1-3 Year U.S. Treasury Index 0.60% 1.94 yrs 3.1% 53.7% 43.1% 0.0% 0.0% 0.0% 60% 53.7% 50% 40% 41.5% 43.2% 43.1% 30% 20% 10% 0% 10.3% 5.0% 3.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years PALM BEACH CNTY FL S/D BofA ML 1-3 Year U.S. Treasury Index 2016 PFM Asset Management LLC Account Page 19 of 51

20 PALM BEACH CNTY FL S/D Portfolio Composition Duration Distribution As of June 30, 2016 Portfolio / Benchmark Effective Duration 0-1 YEARS 1-2 YEARS 2-3 YEARS 3-4 YEARS 4-5 YEARS > 5 YEARS PALM BEACH CNTY FL S/D % 41.46% 43.20% 5.01% 0.00% 0.00% BofA ML 1-3 Year U.S. Treasury Index % 53.74% 43.15% 0.00% 0.00% 0.00% 60% Distribution by Effective Duration 54% 60% Contribution to Portfolio Duration 56% 56% 50% 40% 41% 43% 43% 50% 40% 43% 30% 30% 32% 20% 10% 0% 10% 5% 3% 0% 0% 0% 0% 0% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years 20% 10% 0% 8% 4% 2% 0% 0% 0% 0% 0% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years PALM BEACH CNTY FL S/D BofA ML 1-3 Year U.S. Treasury Index PALM BEACH CNTY FL S/D BofA ML 1-3 Year U.S. Treasury Index 2016 PFM Asset Management LLC Account Page 20 of 51

21 PALM BEACH CNTY FL S/D Portfolio Composition Credit Quality As of June 30, 2016 S&P Rating Market Value ($) % of Portfolio AA+ $42,426, % AA- $3,622, % AA $2,425, % AA 5.0% AA- 7.5% Totals $48,475, % AA+ 87.5% Detail may not add to total due to rounding PFM Asset Management LLC Page 21 of 51 Account

22 PALM BEACH CNTY FL S/D Portfolio Composition Issuer Issuer Distribution As of June 30, 2016 Market Value ($) % of Portfolio UNITED STATES TREASURY 29,928, % FANNIE MAE 4,501, % FREDDIE MAC 4,257, % FEDERAL HOME LOAN BANKS 2,536, % BERKSHIRE HATHAWAY INC 1,423, % TOYOTA MOTOR CORP 1,208, % IBM CORP 1,207, % CHEVRON CORP 1,206, % APPLE INC 1,202, % REGIONAL TRANS AUTH, IL 1,002, % Top 5 = 88.0% Top 10 = 100.0% Grand Total: 48,475, % 2016 PFM Asset Management LLC Account Page 22 of 51

23 PALM BEACH CNTY FL S/D Portfolio Composition Sector/Issuer Distribution As of June 30, 2016 Sector / Issuer Market Value ($) % of Sector % of Total Portfolio Corporate APPLE INC 1,202, % 2.5% BERKSHIRE HATHAWAY INC 1,423, % 2.9% CHEVRON CORP 1,206, % 2.5% IBM CORP 1,207, % 2.5% TOYOTA MOTOR CORP 1,208, % 2.5% Sector Total 6,248, % 12.9% Federal Agency/GSE FANNIE MAE 4,501, % 9.3% FEDERAL HOME LOAN BANKS 2,536, % 5.2% FREDDIE MAC 4,257, % 8.8% Sector Total 11,295, % 23.3% Municipal REGIONAL TRANS AUTH, IL 1,002, % 2.1% Sector Total 1,002, % 2.1% U.S. Treasury UNITED STATES TREASURY 29,928, % 61.7% 2016 PFM Asset Management LLC Account Page 23 of 51

24 PALM BEACH CNTY FL S/D Portfolio Composition Sector / Issuer Market Value ($) % of Sector % of Total Portfolio Sector Total 29,928, % 61.7% Portfolio Total 48,475, % 100.0% 2016 PFM Asset Management LLC Account Page 24 of 51

25 PALM BEACH CNTY FL S/D Portfolio Activity Quarterly Portfolio Transactions Trade Date Settle Date Par ($) CUSIP Security Description Coupon Maturity Date Transact Amt ($) Yield at Market Realized G/L (BV) BUY 4/26/16 5/4/16 1,000, M1 REGIONAL TRANS AUTH, IL TXBL REV BONDS 1.25% 5/4/18 1,000, % 5/3/16 5/6/16 1,200, G0ZL0 FNMA NOTES 1.00% 9/27/17 1,206, % 5/3/16 5/6/16 850, RH5 US TREASURY NOTES 1.37% 9/30/18 862, % 5/26/16 5/27/16 1,270, A8BD4 FEDERAL HOME LOAN BANKS AGCY 0.87% 6/29/18 1,266, % 5/26/16 5/31/16 1,000, G0J53 FNMA BENCHMARK NOTE 1.00% 2/26/19 1,000, % 6/2/16 6/3/16 1,250, A8DB6 FHLB GLOBAL NOTE 1.12% 6/21/19 1,249, % 6/27/16 6/28/16 2,420, TH3 US TREASURY NOTES 0.87% 7/31/19 2,440, % Total BUY 8,990,000 9,025, INTEREST 4/1/16 4/1/16 2,075, X88 REGIONAL TRANS AUTH, IL TXBL REV BONDS 0.55% 5/6/16 5, /30/16 4/30/16 3,080, WD8 US TREASURY NOTES 1.25% 10/31/18 19, /30/16 4/30/16 3,000, UZ1 US TREASURY NOTES 0.62% 4/30/18 9, /30/16 4/30/16 4,200, SS0 US TREASURY NOTES 0.87% 4/30/17 18, /30/16 4/30/16 1,295, WD8 US TREASURY NOTES 1.25% 10/31/18 8, /3/16 5/3/16 1,200, AJ9 APPLE INC GLOBAL NOTES 1.00% 5/3/18 6, /6/16 5/6/16 2,075, X88 REGIONAL TRANS AUTH, IL TXBL REV BONDS 0.55% 5/6/16 1, /21/16 6/21/16 1,250, A8DB6 FHLB GLOBAL NOTE 1.12% 6/21/ /29/16 6/29/16 1,270, A8BD4 FEDERAL HOME LOAN BANKS AGCY 0.87% 6/29/ /30/16 6/30/16 2,700, A75 US TREASURY NOTES 1.50% 12/31/18 20, /30/16 6/30/16 2,040, A75 US TREASURY NOTES 1.50% 12/31/18 15, Total INTEREST 24,185, , PFM Asset Management LLC Account Page 25 of 51

26 PALM BEACH CNTY FL S/D Portfolio Activity Trade Date Settle Date Par ($) CUSIP Security Description Coupon Maturity Date Transact Amt ($) Yield at Market Realized G/L (BV) MATURITY 5/6/16 5/6/16 2,075, X88 REGIONAL TRANS AUTH, IL TXBL REV BONDS 0.55% 5/6/16 2,075, Total MATURITY 2,075,000 2,075, SELL 4/26/16 5/3/16 885, SC5 US TREASURY NOTES 0.87% 1/31/17 889, % /26/16 5/3/16 120, SM3 US TREASURY NOTES 1.00% 3/31/17 120, % /26/16 5/31/16 600, G0CM3 FNMA NOTES 1.25% 9/28/16 602, % /26/16 5/27/16 1,300, UZ1 US TREASURY NOTES 0.62% 4/30/18 1,294, % 5, /26/16 5/31/16 400, A2T97 FHLB NOTES 0.50% 9/28/16 400, % /2/16 6/3/16 1,250, C65 US TREASURY NOTES 1.62% 3/31/19 1,275, % 1, /27/16 6/28/16 1,025, SM3 US TREASURY NOTES 1.00% 3/31/17 1,031, % 3, /27/16 6/28/16 1,400, SS0 US TREASURY NOTES 0.87% 4/30/17 1,406, % 3, Total SELL 6,980,000 7,019, , PFM Asset Management LLC Account Page 26 of 51

27 PALM BEACH CNTY FL S/D Portfolio Activity Quarterly Portfolio Transactions Tran. Type Trade Date Settle Date Par ($) CUSIP Security Description Coupon Maturity Date Transact Amt ($) Yield Realized G/L (BV) INTEREST 4/1/16 4/1/16 2,075, X88 REGIONAL TRANS AUTH, IL TXBL REV 0.55% 5/6/16 5, BONDS SELL 4/26/16 5/3/16 885, SC5 US TREASURY NOTES 0.87% 1/31/17 889, % SELL 4/26/16 5/3/16 120, SM3 US TREASURY NOTES 1.00% 3/31/17 120, % BUY 4/26/16 5/4/16 1,000, M1 REGIONAL TRANS AUTH, IL TXBL REV 1.25% 5/4/18 (1,000,000.00) 1.25% BONDS INTEREST 4/30/16 4/30/16 3,080, WD8 US TREASURY NOTES 1.25% 10/31/18 19, INTEREST 4/30/16 4/30/16 3,000, UZ1 US TREASURY NOTES 0.62% 4/30/18 9, INTEREST 4/30/16 4/30/16 4,200, SS0 US TREASURY NOTES 0.87% 4/30/17 18, INTEREST 4/30/16 4/30/16 1,295, WD8 US TREASURY NOTES 1.25% 10/31/18 8, INTEREST 5/3/16 5/3/16 1,200, AJ9 APPLE INC GLOBAL NOTES 1.00% 5/3/18 6, BUY 5/3/16 5/6/16 1,200, G0ZL0 FNMA NOTES 1.00% 9/27/17 (1,206,124.00) 0.71% BUY 5/3/16 5/6/16 850, RH5 US TREASURY NOTES 1.37% 9/30/18 (862,471.86) 0.81% INTEREST 5/6/16 5/6/16 2,075, X88 REGIONAL TRANS AUTH, IL TXBL REV 0.55% 5/6/16 1, BONDS MATURITY 5/6/16 5/6/16 2,075, X88 REGIONAL TRANS AUTH, IL TXBL REV 0.55% 5/6/16 2,075, BONDS BUY 5/26/16 5/27/16 1,270, A8BD4 FEDERAL HOME LOAN BANKS AGCY 0.87% 6/29/18 (1,266,939.30) 0.99% SELL 5/26/16 5/27/16 1,300, UZ1 US TREASURY NOTES 0.62% 4/30/18 1,294, % 5, BUY 5/26/16 5/31/16 1,000, G0J53 FNMA BENCHMARK NOTE 1.00% 2/26/19 (1,000,668.89) 1.07% SELL 5/26/16 5/31/16 600, G0CM3 FNMA NOTES 1.25% 9/28/16 602, % SELL 5/26/16 5/31/16 400, A2T97 FHLB NOTES 0.50% 9/28/16 400, % BUY 6/2/16 6/3/16 1,250, A8DB6 FHLB GLOBAL NOTE 1.12% 6/21/19 (1,249,475.00) 1.14% 2016 PFM Asset Management LLC Account Page 27 of 51

28 PALM BEACH CNTY FL S/D Portfolio Activity Tran. Type Trade Date Settle Date Par ($) CUSIP Security Description Coupon Maturity Date Transact Amt ($) Yield Realized G/L (BV) SELL 6/2/16 6/3/16 1,250, C65 US TREASURY NOTES 1.62% 3/31/19 1,275, % 1, INTEREST 6/21/16 6/21/16 1,250, A8DB6 FHLB GLOBAL NOTE 1.12% 6/21/ BUY 6/27/16 6/28/16 2,420, TH3 US TREASURY NOTES 0.87% 7/31/19 (2,440,106.07) 0.72% SELL 6/27/16 6/28/16 1,025, SM3 US TREASURY NOTES 1.00% 3/31/17 1,031, % 3, SELL 6/27/16 6/28/16 1,400, SS0 US TREASURY NOTES 0.87% 4/30/17 1,406, % 3, INTEREST 6/29/16 6/29/16 1,270, A8BD4 FEDERAL HOME LOAN BANKS AGCY 0.87% 6/29/ INTEREST 6/30/16 6/30/16 2,700, A75 US TREASURY NOTES 1.50% 12/31/18 20, INTEREST 6/30/16 6/30/16 2,040, A75 US TREASURY NOTES 1.50% 12/31/18 15, TOTALS 174, , PFM Asset Management LLC Account Page 28 of 51

29 PALM BEACH CNTY FL S/D Trade Analysis for May 3, 2016 Transaction Date: May 3, 2016 Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional Earnings Sold US TREASURY NOTES 1/31/2017 $885, $ % $ Purchased REGIONAL TRANS AUTH, IL TXBL REV BONDS 5/4/2018 $885, $ % 0.718% 4, Total Estimated Benefit from Transaction to Original Maturity $5, Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional Earnings Sold US TREASURY NOTES 3/31/2017 $120, $ % $ Purchased REGIONAL TRANS AUTH, IL TXBL REV BONDS 5/4/2018 $115, $ % 0.660% Total Estimated Benefit from Transaction to Original Maturity $1, Total Estimated Benefit from Transactions $6, Transaction Commentary: In accordance with Section III. Investment Objectives, of the District's Investment Policy, from time to time, securities may be traded for other similar securities to improve yield, maturity, or credit risk. For these transactions, a loss may be incurred for accounting purposes, provided any of the following occurs with respect to the replacement security: 1) The yield has been increased, 2) the maturity has been reduced, or lengthened, 3) or the quality of the investment has been improved. The transactions presented were executed in accordance with Section III Investment Objectives of the District's Investment Policy to 1) the yield of the portfolio has been increased and 2) the maturity has been extended, as part of PFM's overall active management strategy for the District's Investment Portfolio, which should also increase the portfolio's total return. The performance of this portfolio should be evaluated based on the total return versus the District's Merrill Lynch 1-3 Year U.S. Treasury Index benchmark. PFM calculates the total return of the District's Investment Portfolio in a manner consistent with the CFA Institute's Global Investment Performance Standards. Notes: 1. The total estimated benefit from the transaction is based on the net of the benefit in yield and the gain or loss on the transaction. The benefit is calculated on a 30/360 day basis until the earlier of: 1) original maturity of the sold security, or 2) new maturity of the purchased security. Total purchase may not equal to proceeds from sold securities as a result of additional income included in purchase or from a portion of maturity not reinvested. Calculations based on lesser of amount sold or reinvested PFM Asset Management LLC Account Page 29 of 51

30 PALM BEACH CNTY FL S/D Trade Analysis for May 27, 2016 Transaction Date: May 27, 2016 Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional Earnings Sold US TREASURY NOTES 4/30/2018 $1,300, $ % $5, Purchased FEDERAL HOME LOAN BANKS AGCY 6/29/2018 $1,270, $ % 0.113% 2, Total Estimated Benefit from Transaction to Original Maturity $7, Transaction Commentary: In accordance with Section III. Investment Objectives, of the District's Investment Policy, from time to time, securities may be traded for other similar securities to improve yield, maturity, or credit risk. For these transactions, a loss may be incurred for accounting purposes, provided any of the following occurs with respect to the replacement security: 1) The yield has been increased, 2) the maturity has been reduced, or lengthened, 3) or the quality of the investment has been improved. The transactions presented were executed in accordance with Section III Investment Objectives of the District's Investment Policy to 1) the yield of the portfolio has been increased, as part of PFM's overall active management strategy for the District's Investment Portfolio, which should also increase the portfolio's total return. The performance of this portfolio should be evaluated based on the total return versus the District's Merrill Lynch 1-3 Year U.S. Treasury Index benchmark. PFM calculates the total return of the District's Investment Portfolio in a manner consistent with the CFA Institute's Global Investment Performance Standards. Notes: 1. The total estimated benefit from the transaction is based on the net of the benefit in yield and the gain or loss on the transaction. The benefit is calculated on a 30/360 day basis until the earlier of: 1) original maturity of the sold security, or 2) new maturity of the purchased security. Total purchase may not equal to proceeds from sold securities as a result of additional income included in purchase or from a portion of maturity not reinvested. Calculations based on lesser of amount sold or reinvested PFM Asset Management LLC Account Page 30 of 51

31 PALM BEACH CNTY FL S/D Trade Analysis for May 31, 2016 Transaction Date: May 31, 2016 Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional Earnings Sold FHLB NOTES 9/28/ , % Purchased FNMA BENCHMARK NOTE 2/26/ , $ % 0.566% Total Estimated Benefit from Transaction to Original Maturity $ Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional Earnings Sold FNMA NOTES 9/28/2016 $600, $ % Purchased FNMA BENCHMARK NOTE 2/26/2019 $600, $ % 0.565% 1, Total Estimated Benefit from Transaction to Original Maturity $1, Total Estimated Benefit from Transactions $2, Transaction Commentary: In accordance with Section III. Investment Objectives, of the District's Investment Policy, from time to time, securities may be traded for other similar securities to improve yield, maturity, or credit risk. For these transactions, a loss may be incurred for accounting purposes, provided any of the following occurs with respect to the replacement security: 1) The yield has been increased, 2) the maturity has been reduced, or lengthened, 3) or the quality of the investment has been improved. The transactions presented were executed in accordance with Section III Investment Objectives of the District's Investment Policy to 1) the yield of the portfolio has been increased and 2) the maturity has been extended, as part of PFM's overall active management strategy for the District's Investment Portfolio, which should also increase the portfolio's total return. The performance of this portfolio should be evaluated based on the total return versus the District's Merrill Lynch 1-3 Year U.S. Treasury Index benchmark. PFM calculates the total return of the District's Investment Portfolio in a manner consistent with the CFA Institute's Global Investment Performance Standards. Notes: 1. The total estimated benefit from the transaction is based on the net of the benefit in yield and the gain or loss on the transaction. The benefit is calculated on a 30/360 day basis until the earlier of: 1) original maturity of the sold security, or 2) new maturity of the purchased security. Total purchase may not equal to proceeds from sold securities as a result of additional income included in purchase or from a portion of maturity not reinvested. Calculations based on lesser of amount sold or reinvested PFM Asset Management LLC Account Page 31 of 51

32 PALM BEACH CNTY FL S/D Trade Analysis for June 3, 2016 Transaction Date: June 3, 2016 Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional Earnings Sold US TREASURY NOTES 3/31/2019 $1,250, $ % $1, Purchased FHLB GLOBAL NOTE 6/21/2019 $1,250, $ % 0.133% 4, Total Estimated Benefit from Transaction to Original Maturity $6, Total Estimated Benefit from Transactions $6, Transaction Commentary: In accordance with Section III. Investment Objectives, of the District's Investment Policy, from time to time, securities may be traded for other similar securities to improve yield, maturity, or credit risk. For these transactions, a loss may be incurred for accounting purposes, provided any of the following occurs with respect to the replacement security: 1) The yield has been increased, 2) the maturity has been reduced, or lengthened, 3) or the quality of the investment has been improved. The transactions presented were executed in accordance with Section III Investment Objectives of the District's Investment Policy to 1) the yield of the portfolio has been increased, as part of PFM's overall active management strategy for the District's Investment Portfolio, which should also increase the portfolio's total return. The performance of this portfolio should be evaluated based on the total return versus the District's Merrill Lynch 1-3 Year U.S. Treasury Index benchmark. PFM calculates the total return of the District's Investment Portfolio in a manner consistent with the CFA Institute's Global Investment Performance Standards. Notes: 1. The total estimated benefit from the transaction is based on the net of the benefit in yield and the gain or loss on the transaction. The benefit is calculated on a 30/360 day basis until the earlier of: 1) original maturity of the sold security, or 2) new maturity of the purchased security. Total purchase may not equal to proceeds from sold securities as a result of additional income included in purchase or from a portion of maturity not reinvested. Calculations based on lesser of amount sold or reinvested PFM Asset Management LLC Account Page 32 of 51

33 PALM BEACH CNTY FL S/D Trade Analysis for June 28, 2016 Transaction Date: June 28, 2016 Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional Earnings Sold US TREASURY NOTES 3/31/2017 $1,025, $ % $3, Purchased US TREASURY NOTES 7/31/2019 $1,025, $ % 0.222% 1, Total Estimated Benefit from Transaction to Original Maturity $5, Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional Earnings Sold US TREASURY NOTES 4/30/2017 $1,400, $ % 3, Purchased US TREASURY NOTES 7/31/2019 $1,395, $ % 0.209% 2, Total Estimated Benefit from Transaction to Original Maturity $6, Total Estimated Benefit from Transactions $11, Transaction Commentary: In accordance with Section III. Investment Objectives, of the District's Investment Policy, from time to time, securities may be traded for other similar securities to improve yield, maturity, or credit risk. For these transactions, a loss may be incurred for accounting purposes, provided any of the following occurs with respect to the replacement security: 1) The yield has been increased, 2) the maturity has been reduced, or lengthened, 3) or the quality of the investment has been improved. The transactions presented were executed in accordance with Section III Investment Objectives of the District's Investment Policy to 1) the yield of the portfolio has been increased and 2) the maturity has been extended, as part of PFM's overall active management strategy for the District's Investment Portfolio, which should also increase the portfolio's total return. The performance of this portfolio should be evaluated based on the total return versus the District's Merrill Lynch 1-3 Year U.S. Treasury Index benchmark. PFM calculates the total return of the District's Investment Portfolio in a manner consistent with the CFA Institute's Global Investment Performance Standards. Notes: 1. The total estimated benefit from the transaction is based on the net of the benefit in yield and the gain or loss on the transaction. The benefit is calculated on a 30/360 day basis until the earlier of: 1) original maturity of the sold security, or 2) new maturity of the purchased security. Total purchase may not equal to proceeds from sold securities as a result of additional income included in purchase or from a portion of maturity not reinvested. Calculations based on lesser of amount sold or reinvested PFM Asset Management LLC Account Page 33 of 51

34 PALM BEACH COUNTY SD SHORT TERM FUND Credit Quality (S&P Ratings) Sector Allocation Portfolio Snapshot Portfolio Statistics As of June 30, 2016 Par Value: 50,000,000 Total Market Value: 102,852,630 Security Market Value: 49,976,750 Accrued Interest: 0 Cash: 52,875,880 PFM - % A-1 Commercial Paper 100.0% Amortized Cost: Yield at Market: Yield at Cost: Effective Duration: 49,964, % 0.72% 0.10 Years 100% 100.0% Maturity Distribution Duration to Worst: Average Maturity: 0.10 Years 0.10 Years 80% Average Credit: ** AAA 60% Benchmark Eff. Yield: 0.26% 40% 20% 0% 0.0% 0.0% 0.0% 0.0% 0.0% 0-1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years ** An average of each security s credit rating assigned a numeric value and adjusted for its relative weighting in the portfolio PFM Asset Management LLC Page 34 of 51 Account

35 PALM BEACH COUNTY SD SHORT TERM FUND Portfolio Performance Portfolio Earnings Quarter-Ended June 30, 2016 Beginning Value (03/30/2016) Market Value Basis $399,809, Accrual (Amortized Cost) Basis $399,679, Net Purchases/Sales ($350,000,000.00) ($350,000,000.00) Change in Value $167, $285, Ending Value (06/30/2016) $49,976, $49,964, Interest Earned Portfolio Earnings $122, $290, $122, $408, PFM Asset Management LLC Account Page 35 of 51

36 PALM BEACH COUNTY SD SHORT TERM FUND Portfolio Composition Sector Allocation As of June 30, 2016 Sector Market Value ($) % of Portfolio Commercial Paper 49,976, % Total 49,976, % Commercial Paper 100.0% Detail may not add to total due to rounding PFM Asset Management LLC Page 36 of 51 Account

37 PALM BEACH COUNTY SD SHORT TERM FUND Portfolio Composition Sector Allocation As of June 30, 2016 Sector Market Value ($) % of Portfolio % of Benchmark Commercial Paper U.S. Treasury Total 49,976, % % 49,976, % 100.0% 100% 100.0% 100.0% 80% 60% 40% 20% 0% Commercial Paper 0.0% 0.0% U.S. Treasury PALM BEACH COUNTY SD SHORT TERM FUND Detail may not add to total due to rounding PFM Asset Management LLC Page 37 of 51 Account

38 PALM BEACH COUNTY SD SHORT TERM FUND Portfolio Composition Sector Sector Allocation June 30, 2016 March 30, 2016 December 30, 2015 September 30, 2015 MV ($MM) % of Total MV ($MM) % of Total MV ($MM) % of Total MV ($MM) % of Total Commercial Paper % % % % U.S. Treasury % % % % Federal Agency/GSE % % % % Total $ % $ % $ % $ % 100% 90% 80% 70% Federal Agency/GSE U.S. Treasury Commercial Paper 60% 50% 40% 30% 20% 10% 0% June 2016 March 2016 December 2015 Detail may not add to total due to rounding PFM Asset Management LLC Page 38 of 51 Account

39 PALM BEACH COUNTY SD SHORT TERM FUND Portfolio Composition Maturity Distribution As of June 30, 2016 Portfolio/Benchmark Yield at Market Average Maturity 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years >5 Years PALM BEACH COUNTY SD SHORT TERM FUND 0.45% 0.10 yrs 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% BofA ML 3 Month U.S. Treasury Bill Index 0.26% 0.25 yrs 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100% 100.0% 100.0% 80% 60% 40% 20% 0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years PALM BEACH COUNTY SD SHORT TERM FUND BofA ML 3 Month U.S. Treasury Bill Index 2016 PFM Asset Management LLC Account Page 39 of 51

40 PALM BEACH COUNTY SD SHORT TERM FUND Portfolio Composition Duration Distribution As of June 30, 2016 Portfolio / Benchmark Effective Duration 0-1 YEARS 1-2 YEARS 2-3 YEARS 3-4 YEARS 4-5 YEARS > 5 YEARS PALM BEACH COUNTY SD SHORT TERM FUND % 0.00% 0.00% 0.00% 0.00% 0.00% BofA ML 3 Month U.S. Treasury Bill Index % 0.00% 0.00% 0.00% 0.00% 0.00% 100% 100% 100% Distribution by Effective Duration 100% 100% Contribution to Portfolio Duration 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years 0% 0% 0% 0% 0% 0% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years PALM BEACH COUNTY SD SHORT TERM FUND BofA ML 3 Month U.S. Treasury Bill Index 2016 PFM Asset Management LLC Account Page 40 of 51

41 PALM BEACH COUNTY SD SHORT TERM FUND Portfolio Composition S&P Rating Market Value ($) % of Portfolio Credit Quality As of June 30, 2016 A-1 $49,976, % Totals $49,976, % A % Detail may not add to total due to rounding PFM Asset Management LLC Page 41 of 51 Account

42 PALM BEACH COUNTY SD SHORT TERM FUND Portfolio Composition Issuer Issuer Distribution As of June 30, 2016 Market Value ($) % of Portfolio MITSUBISHI UFJ FINANCIAL GROUP INC 24,994, % RABOBANK NEDERLAND 24,982, % Grand Total: 49,976, % 2016 PFM Asset Management LLC Account Page 42 of 51

43 PALM BEACH COUNTY SD SHORT TERM FUND Portfolio Composition Sector/Issuer Distribution As of June 30, 2016 Sector / Issuer Market Value ($) % of Sector % of Total Portfolio Commercial Paper MITSUBISHI UFJ FINANCIAL GROUP INC 24,994, % 50.0% RABOBANK NEDERLAND 24,982, % 50.0% Sector Total 49,976, % 100.0% Portfolio Total 49,976, % 100.0% 2016 PFM Asset Management LLC Account Page 43 of 51

44 PALM BEACH COUNTY SD SHORT TERM FUND Portfolio Activity Quarterly Portfolio Transactions Trade Date Settle Date Par ($) CUSIP Security Description Coupon Maturity Date Transact Amt ($) Yield at Market Realized G/L (BV) INTEREST 4/1/16 4/1/16 0 MONEY0002 MONEY MARKET FUND /30/16 4/30/16 50,000, C81 US TREASURY NOTES 0.37% 4/30/16 93, /30/16 4/30/16 25,000, C81 US TREASURY NOTES 0.37% 4/30/16 46, /2/16 5/2/16 0 MONEY0002 MONEY MARKET FUND /15/16 5/15/16 25,000, VC1 US TREASURY NOTES 0.25% 5/15/16 31, /31/16 5/31/16 50,000, WM8 US TREASURY NOTES 0.37% 5/31/16 93, /1/16 6/1/16 0 MONEY0002 MONEY MARKET FUND /30/16 6/30/16 50,000, WQ9 US TREASURY NOTES 0.50% 6/30/16 125, Total INTEREST 200,000, , MATURITY 4/30/16 4/30/16 25,000, C81 US TREASURY NOTES 0.37% 4/30/16 25,000, /30/16 4/30/16 50,000, C81 US TREASURY NOTES 0.37% 4/30/16 50,000, /3/16 5/3/16 25,000, GE36 TOYOTA MOTOR CREDIT CORP COMM PAPER 0.00% 5/3/16 25,000, /15/16 5/15/16 25,000, VC1 US TREASURY NOTES 0.25% 5/15/16 25,000, /16/16 5/16/16 25,000, PEG4 JP MORGAN SECURITIES LLC COMM PAPER 0.00% 5/16/16 25,000, /31/16 5/31/16 50,000, WM8 US TREASURY NOTES 0.37% 5/31/16 50,000, /6/16 6/6/16 25,000, BF62 BNP PARIBAS NY BRANCH COMM PAPER 0.00% 6/6/16 25,000, /8/16 6/8/16 50,000, XW4 FHLB DISC NOTE 0.00% 6/8/16 50,000, /16/16 6/16/16 25,000, TFG6 CREDIT AGRICOLE CIB NY COMM PAPER 0.00% 6/16/16 25,000, /30/16 6/30/16 50,000, WQ9 US TREASURY NOTES 0.50% 6/30/16 50,000, Total MATURITY 350,000, ,000, PFM Asset Management LLC Account Page 44 of 51

45 PALM BEACH COUNTY SD SHORT TERM FUND Portfolio Activity Quarterly Portfolio Transactions Tran. Type Trade Date Settle Date Par ($) CUSIP Security Description Coupon Maturity Date Transact Amt ($) Yield Realized G/L (BV) INTEREST 4/1/16 4/1/ MONEY0002 MONEY MARKET FUND INTEREST 4/30/16 4/30/16 50,000, C81 US TREASURY NOTES 0.37% 4/30/16 93, INTEREST 4/30/16 4/30/16 25,000, C81 US TREASURY NOTES 0.37% 4/30/16 46, MATURITY 4/30/16 4/30/16 25,000, C81 US TREASURY NOTES 0.37% 4/30/16 25,000, MATURITY 4/30/16 4/30/16 50,000, C81 US TREASURY NOTES 0.37% 4/30/16 50,000, INTEREST 5/2/16 5/2/ MONEY0002 MONEY MARKET FUND MATURITY 5/3/16 5/3/16 25,000, GE36 TOYOTA MOTOR CREDIT CORP COMM 0.00% 5/3/16 25,000, PAPER INTEREST 5/15/16 5/15/16 25,000, VC1 US TREASURY NOTES 0.25% 5/15/16 31, MATURITY 5/15/16 5/15/16 25,000, VC1 US TREASURY NOTES 0.25% 5/15/16 25,000, MATURITY 5/16/16 5/16/16 25,000, PEG4 JP MORGAN SECURITIES LLC COMM PAPER 0.00% 5/16/16 25,000, INTEREST 5/31/16 5/31/16 50,000, WM8 US TREASURY NOTES 0.37% 5/31/16 93, MATURITY 5/31/16 5/31/16 50,000, WM8 US TREASURY NOTES 0.37% 5/31/16 50,000, INTEREST 6/1/16 6/1/ MONEY0002 MONEY MARKET FUND MATURITY 6/6/16 6/6/16 25,000, BF62 BNP PARIBAS NY BRANCH COMM PAPER 0.00% 6/6/16 25,000, MATURITY 6/8/16 6/8/16 50,000, XW4 FHLB DISC NOTE 0.00% 6/8/16 50,000, MATURITY 6/16/16 6/16/16 25,000, TFG6 CREDIT AGRICOLE CIB NY COMM PAPER 0.00% 6/16/16 25,000, INTEREST 6/30/16 6/30/16 50,000, WQ9 US TREASURY NOTES 0.50% 6/30/16 125, MATURITY 6/30/16 6/30/16 50,000, WQ9 US TREASURY NOTES 0.50% 6/30/16 50,000, TOTALS 350,390, PFM Asset Management LLC Account Page 45 of 51

46 Tab III 2016 PFM Asset Management LLC Page 46 of 51

47 PALM BEACH COUNTY SCHOOL DISTRICT Asset Allocation as of June 30, 2016 Fixed Income Money Market Mutual Funds 12.96% State and/or Local Government Debt 0.25% Corporate Notes 1.53% Commercial Paper 12.24% Intergovernmental Investment Pools FEITF 22.22% Bank Cash 40.74% Federal Instrumentalities 2.76% United States Treasury Securities 7.30% Florida Prime (SBA) 0.01% Security Type 1 Amortized Cost (Includes Interest) Allocation Percentage Notes Permitted by Policy In Compliance Florida Prime (SBA) 32, % 2 25% YES United States Treasury Securities 29,777, % 100% YES United States Government Agency Securities % 50% YES Federal Instrumentalities 11,267, % 3 80% YES Mortgage-Backed Securities % 3 20% YES Certificates of Deposit or Savings Accounts % 25% YES Repurchase Agreements % 50% YES Commercial Paper 49,964, % 35% YES Corporate Notes 6,238, % 15% YES Bankers' Acceptances % 35% YES State and/or Local Government Debt 1,001, % 20% YES Fixed Income Money Market Mutual Funds 52,875, % 75% YES Short Term Bonds Funds % 25% YES Intergovernmental Investment Pools - FEITF 90,658, % 25% YES Bank Cash 166,227, % 2 100% YES Notes: 1. End of month trade-date amortized cost of portfolio holdings, including accrued interest. 2. Managed by the School District. 3. The combined total of Federal Instrumentalities and Mortgage Backed Securities cannot be more than 80%. The combined total as of June 30, 2016 is 2.76% PFM Asset Management LLC Page 47 of 51

48 PALM BEACH COUNTY SCHOOL DISTRICT Asset Allocation as of June 30, 2016 Amortized Cost (Includes Interest) Allocation Percentage Permitted by Policy In Compliance Individual Issuer Breakdown Notes Government National Mortgage Association (GNMA) % 25% YES Federal Farm Credit Bank (FFCB) % 50% YES Federal Home Loan Bank (FHLB) 2,517, % 50% YES Federal National Mortgage Association (FNMA) 4,491, % 50% YES Federal Home Loan Mortgage Corporation (FHLMC) 4,258, % 50% YES Regional Transportation Authority Municipal Bonds 1,001, % 20% YES Apple, Inc. Corporate Notes 1,192, % 5% YES Berkshire Hathaway, Inc. Corporate Notes 1,425, % 5% YES Chevron Corporation Corporate Notes 1,204, % 5% YES IBM Corporation Corporate Notes 1,205, % 5% YES Toyota Motor Corporation Corporate Notes 1,209, % 5% YES Bank of Tokyo Mitsubishi, Inc. Commercial Paper 24,990, % 10% YES Rabobank Nederland Commercial Paper 24,974, % 10% YES Money Market Fund - TD Bank 52,875, % 25% YES Florida Prime 32, % 25% YES 2016 PFM Asset Management LLC Page 48 of 51

49 PALM BEACH COUNTY SD SHORT TERM FUND Portfolio Activity Important Disclosures 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 a specific recommendation. All statements as to what will or may happen under certain circumstances are based on assumptions, some but not all of which are noted in the presentation. Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Past performance does not necessarily reflect and is not a guaranty of future results. The information contained in this presentation is not an offer to purchase or sell any securities. Dime Market values which include accrued interest, are derived from closing bid prices as of the last business day of the month as supplied by a third party vendor. Where prices are not available from generally recognized sources the securities are priced using a yield based matrix system to arrive at an estimated market value. In accordance with generally accepted accounting principles, information is presented on a trade date basis; forward settling purchases are included in the monthly balances and forward settling sales are excluded. Performance is presented in accordance with the CFA Institute s Global Investment Performance Standards (GIPS). Unless otherwise noted, performance is shown gross of fees. Quarterly returns are presented on an unannualized basis. Returns for periods greater than one year are presented on an annualized basis. Past performance is not indicative of future returns. Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets. Money market fund/cash balances are included in performance and duration computations. Standard & Poor's is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/lgip holdings. Callable securities in portfolio are included in the maturity distribution analysis to their stated maturity date, although they may be called prior to maturity. MBS maturities are represented by expected average life PFM Asset Management LLC Account Page 49 of 51