Investment Performance Review For the Quarter Ended June 30, 2018

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Investment Performance Review Investment Advisors Steven Alexander, CTP, CGFO, CPPT, Managing Director Robert Cheddar, CFA, Chief Credit Officer, Managing Director D. Scott Stitcher, CFA, Director Jason Human, Client Manager Sean Gannon, Senior Analyst 213 Market Street Harrisburg, PA 17101 717.232.2723 717.233.6073 fax 300 South Orange Avenue Suite 1170 Orlando, FL 32801 407.648.2208 407.648.1323 fax

QUARTERLY MARKET SUMMARY Fixed Income Management SUMMARY Economic data continued to indicate strong growth worldwide, despite the myriad of geopolitical and global trade war events hitting the headlines. During the quarter, volatility waned, equity markets gained their footing, the U.S. Dollar (USD) continued its ascent and the Federal Open Market Committee s (FOMC) dual mandate came into clearer focus. But, with trade wars officially on, it s now a question of whether the strong fiscal stimulus that is fueling the U.S. economy will be enough to overcome the drag of trade uncertainty. Positive economic data released in the second quarter included job gains, housing starts, new home sales, factory orders, manufacturing survey indices and consumer sentiment. At its June FOMC meeting, the Federal Reserve (Fed) increased the overnight federal funds rate by 0.25 percent, to a new range of 1.75 to 2.00 percent. While widely anticipated, the June rate hike was consistent with the Fed s continuing resolve to gradually tighten monetary policy. Fed expectations as measured by the FOMC s updated dot plot indicated two more rate hikes in the second half of 2018 and three more in 2019. Market estimates as measured by Fed funds futures contracts similarly imply two more hikes in 2018, but are less optimistic for 2019. The S&P 500 Index (S&P) rebounded by 3.4 percent over the quarter, following the first quarterly decline (first quarter 2018) in nearly three years. International indices followed suit, posting gains in local currencies for the quarter; however, the stronger USD tempered those gains for domestic investors. Meanwhile, bond yields generally rose, while the yield curve flattened. ECONOMIC SNAPSHOT Real gross domestic product (GDP) in the U.S. increased at an annual rate of 2 percent in the first quarter. The deceleration in growth was driven by weaker consumer spending, despite being boosted by a significant improvement in net exports. Looking forward, federal tax cuts and expanded spending point toward accelerated growth estimates for the second quarter. U.S. labor market conditions part one of the Fed s dual mandate remained strong during the quarter. Despite the quarter-end uptick in the headline unemployment rate to 4 percent (previously 3.8 percent), it remains near multidecade lows. In addition, job growth remains robust (monthly average of 211,000 new jobs in the second quarter), weekly jobless claims reached a generational low and job openings reached a new record high. In fact, for the first time, there are more job openings than the number of unemployed persons. Inflation the second part of the Fed s dual mandate continued to march higher. As measured by the personal consumption expenditures (PCE) core price index, year-over-year (YoY) inflation reached the Fed s target of 2 percent for the first time since 2012. INTEREST RATES U.S. Treasury yields generally rose over the quarter, with maturities less than three years increasing 20 to 25 basis points (bps) (0.20 to 0.25 percent), while maturities greater than five years increased by a lesser amount and 30-year Treasury bonds were nearly unchanged. The result was a flatter yield curve; the difference between 10-year and two-year Treasury yields narrowed to 33 bps (0.33 percent) by quarterend, a level not hit since June 2007. Money market investments, like commercial paper and bank Certificates of Deposit (CDs), continued to offer attractive yields, reacting quickly to the periodic Fed rate hikes. After widening in the first quarter, credit spreads remained volatile in the second quarter, but ended the quarter only modestly wider. Healthy corporate fundamentals remained supportive. SECTOR PERFORMANCE Rising yields caused shorter-maturity to outperform longer-maturity Treasury indices; the exception was 30-year Treasury bonds, which were buoyed by incremental income amid relatively unchanged yields over the quarter. For example, the three-month Treasury bill index generated +0.45 percent of total return for the quarter, while the five-year Treasury returned -0.05 percent, and the 30-year Treasury returned +0.51 percent. Federal agency returns were in line with similar-duration U.S. Treasury securities for the quarter, as spreads across the majority of the curve continued to trade very narrowly. The incremental income benefit from the sector continues to be minimal. For the second consecutive quarter, the municipal sector was a top performer, as the sector continued to reap the benefits of a sharp slowdown in supply following the year-end flurry of issuance. From both an absolute and excess return perspective, the sector was a positive contributor to portfolio performance for the quarter. Shorter-term corporates generated positive excess returns in the quarter as incremental income offset modestly wider yield spreads. But, longer-term corporates (five years and longer) underperformed Treasuries as the impact of wider yield spreads on longer-duration securities overwhelmed the benefit of higher yields. After a general underperformance of mortgage-backed securities (MBS) in the first quarter, the sector found its footing in the second quarter. Nevertheless, returns in the MBS sector continue to be very much structure-dependent as specific maturity and coupon characteristics drove relative performance. Short-term commercial paper and bank CDs continued to offer incremental value relative to both short- and intermediate-term government securities. The incremental yield advantage offered in these sectors continues to be a valuable return attribute in the face of rising rates. Page 2 of 12

QUARTERLY MARKET SUMMARY Fixed Income Management Economic Snapshot Labor Market Latest Mar '18 Jun '17 Unemployment Rate Jun '18 4. 4.1% 4.3% Change In NonFarm Payrolls Jun '18 213,000 155,000 239,000 Average Hourly Earnings (YoY) Jun '18 2.7% 2.6% 2.5% Personal Income (YoY) May '18 4. 3.7% 2.4% Initial Jobless Claims (week) 6/30/18 231,000 242,000 251,000 6% 5% 4% Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right) Change In NonFarm Payrolls Unemployment Rate 450K 3% 0 Jun '15 Dec '15 Jun '16 Dec '16 Jun '17 Dec '17 Jun '18 300K 150K Growth Real GDP (QoQ SR) 2018Q1 2. 2.9% 1.2% GDP Personal Consumption (QoQ SR) 2018Q1 0.9% 4. 1.9% Retail Sales (YoY) May '18 5.9% 5.1% 3.5% 1 1 2 2 4% 2% Real GDP (QoQ) ISM Manufacturing Survey (month) Jun '18 60.2 59.3 56.7 Existing Home Sales SR (month) May '18 5.43 mil. 5.60 mil. 5.50 mil. Mar '15 Sep '15 Mar '16 Sep '16 Mar '17 Sep '17 Mar '18 Inflation / Prices Personal Consumption Expenditures (YoY) May '18 2.3% 2. 1.4% Consumer Price Index (YoY) May '18 2.8% 2.4% 1.6% Consumer Price Index Core (YoY) May '18 2.2% 2.1% 1.7% Crude Oil Futures (WTI, per barrel) Jun 30 $74.15 $64.94 $46.04 Gold Futures (oz.) Jun 30 $1,255 $1,323 $1,242 Consumer Price Index CPI (YoY) Core CPI (YoY) 3% 2% 1% Jun '15 Dec '15 Jun '16 Dec '16 Jun '17 Dec '17 Jun '18 1. Data as of Fourth Quarter 2017. 2. Data as of First Quarter 2017. Note: YoY = year-over-year, QoQ = quarter over quarter, SR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil. Source: Bloomberg. Page 3 of 12

BREVARD PUBLIC SCHOOLS Executive Summary The Portfolios are of high credit quality and invested in U.S. Treasury, federal agency/gse, federal agency/cmo, commercial paper, corporate notes 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 Yields to Maturity at Cost of 1.51%, 1.71% and 1.96%, respectively, the Discretionary Sales Surtax Portfolio exceeded its benchmark while the other two lagged the benchmark due to maturities being needed to meet expenditures. The Self Insurance and Health-Insurance Portfolios quarterly total return performances were both 0.3, outperforming the benchmark performance of 0.22% by 0.08%. Over the past year, the Self Insurance and Health Insurance portfolios returned 0.28% and 0.25% respectively, compared to the benchmark performance of 0.08%. Despite the myriad of global headwinds to economic growth, including global trade wars and geopolitical uncertainty, the strength and resolve of domestic economic themes continued to rule the day: U.S. GDP grew at 2% in the first quarter with YOY growth up to 2.8%; Inflation trended higher, as the personal consumption expenditures (PCE) core price index grew at 2% YOY for the first time since 2012; The labor market saw continued strength as the U.S. unemployment rate reached a multi-decade low of 3.8% (before bouncing back to 4% in June), job growth remained robust, and wages trended modestly higher; The S&P 500 Index grinded out a 3.4% return for the quarter; The Fed increased short-term rates by an additional ¼ percent in June and is expected to continue to pursue additional gradual rate hikes over the near-term. In light of continued economic growth, inflation near the Fed s symmetric target of 2%, and strong labor market conditions, the Fed appears poised to raise rates further. As a result of the expectation for one or two additional hikes in 2018 and three to four more in 2019, our view remains that the general trend of interest rates will be to increase gradually over the near-term. Therefore, we plan to maintain a defensive duration posture to mitigate a portion of interest rate risk relative to benchmarks. Page 4 of 12

BREVARD CNTY SCHOOL BOARD CAPITAL - ST Portfolio Snapshot Credit Quality (S&P Ratings) Sector Allocation Portfolio Statistics As of June 30, 2018 A 5. A+ 2.5% A-1 12.6% Commercial Paper 12.6% Corporate 7.6% Par Value: $39,750,000 Total Market Value: $39,674,770 Security Market Value: $39,549,512 Accrued Interest: Cash: Amortized Cost: Yield at Market: $125,258 - $39,680,677 2.12% + 79.8% U.S. Treasury 55.4% Federal Agency/GSE 24.4% Yield at Cost: Effective Duration: Duration to Worst: Average Maturity: Average Credit: * 1.51% 0.41 Years 0.41 Years 0.42 Years 10 8 86.3% Maturity Distribution Benchmark Eff. Yield: 1.8 6 4 2 13.7% 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. Page 5 of 12 Account ****0017

BREVARD CNTY SCHOOL BOARD OPERATING - ST Portfolio Snapshot Credit Quality (S&P Ratings) Sector Allocation Portfolio Statistics As of June 30, 2018 A-1 34. Commercial Paper 49. Par Value: $53,000,000 Total Market Value: $52,995,898 Security Market Value: $52,894,980 Accrued Interest: Cash: Amortized Cost: Yield at Market: $100,918 - $52,917,016 1.97% + 51. A-1+ 15.1% U.S. Treasury 51. Yield at Cost: Effective Duration: Duration to Worst: 1.71% 0.12 Years 0.12 Years 10 100. Maturity Distribution Average Maturity: Average Credit: * 0.12 Years 8 Benchmark Eff. Yield: 1.8 6 4 2 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. Page 6 of 12 Account ****0018

BREVARD COUNTY DISC SALES SURTAX ACCOUNT Portfolio Snapshot Credit Quality (S&P Ratings) Sector Allocation Portfolio Statistics + 41.7% A-1 24.9% U.S. Treasury 41.7% As of June 30, 2018 Par Value: $34,130,000 Total Market Value: $34,374,696 Security Market Value: $33,864,772 Accrued Interest: Cash: Amortized Cost: $60,093 $449,831 $34,001,111 A-1+ 33.3% Commercial Paper 58.3% Yield at Market: 2.3 Yield at Cost: Effective Duration: Duration to Worst: 1.96% 0.58 Years 0.58 Years 10 88.6% Maturity Distribution Average Maturity: Average Credit: * 0.60 Years 8 Benchmark Eff. Yield: 1.8 6 4 2 5.8% 5.6% 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. Page 7 of 12 Account ****0019

BREVARD COUNTY FLA SD SELF INSURANCE FD Portfolio Snapshot Credit Quality (S&P Ratings) Sector Allocation Portfolio Statistics As of June 30, 2018 Par Value: $15,284,451 Total Market Value: $15,143,222 Security Market Value: $15,049,557 Accrued Interest: $53,529 Cash: $40,136 Amortized Cost: $15,245,500 Yield at Market: 2.57% + 82.2% A 6.5% A- 4.9% A+ 3. 1.7% - 1.8% U.S. Treasury 54.5% Corporate 17.6% Federal Agency/CMO 1.1% Federal Agency/GSE 24.9% Municipal 1.9% Yield at Cost: Effective Duration: Duration to Worst: Average Maturity: Average Credit: * 1.69% 1.71 Years 1.71 Years 1.78 Years 5 45% 4 35% 45.5% Maturity Distribution 34.5% 3 25% 2 15% 1 5% 14.1% 5.5% 0.3% 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. Page 8 of 12 Account ****0010

BREVARD COUNTY SD HEALTH INSURANCE FUND Portfolio Snapshot Credit Quality (S&P Ratings) Sector Allocation Portfolio Statistics As of June 30, 2018 Par Value: $12,671,154 Total Market Value: $12,555,431 A 4.4% A- 4.9% A+ 2.9% 1.6% - 1.7% Corporate 17.2% Federal Agency/CMO 1.2% Security Market Value: $12,479,507 Accrued Interest: Cash: Amortized Cost: Yield at Market: $46,137 $29,786 $12,643,514 2.57% + 84.5% U.S. Treasury 53.7% Federal Agency/GSE 27.9% Yield at Cost: Effective Duration: Duration to Worst: Average Maturity: Average Credit: * 1.68% 1.70 Years 1.69 Years 1.77 Years 5 45% 4 35% 45.1% Maturity Distribution 34.4% 3 25% 2 15% 1 5% 15.7% 4.4% 0.4% 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. Page 9 of 12 Account ****0016

Appendix IMPORTANT DISCLOSURES This material is based on information obtained from sources generally believed to be reliable and available to the public; however, 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 à Market values that include accrued interest are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, Bloomberg, or Telerate. 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. à 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. à 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. à Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets. à Money market fund/cash balances are included in performance and duration computations. à Standard & Poorʼs is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/lgip holdings. à Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date, although, they may be called prior to maturity. à MBS maturities are represented by expected average life. PFM is the marketing name for a group of affiliated companies providing a range of services. All services are provided through separate agreements with each company. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation. Investment advisory services are provided by which is registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request. The views expressed within this material constitute the perspective and judgment of 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, 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. 2018. Further distribution is not permitted without prior written consent. Page 10 of 12 Account ****0019

On June 30, 2018, the District had total investments by issuer with credit ratings as outlined below: Investment Fair Value Percent of Investment Balance Credit Ratings: S&P Moody's Collateralized Repurchase Agreement (a) $ 4,103,939 2.14% Commercial Paper Bank of Tokyo Mitsubishi 995,581 0.52% A-1 P-1 BNP Paribas 5,984,818 3.12% A-1 P-1 Cooperatieve Centrale 7,987,033 4.16% A-1 P-1 Credit Agricole 2,474,456 1.29% A-1 P-1 Dexia Credit 9,966,679 5.2 A-1+ P-1 GE Captial 4,995,382 2.6 A-1 P-1 JP Morgan Securities 8,968,820 4.68% A-1 P-1 Toyota Motors Credit 9,299,867 4.85% A-1+ P-1 Corporate Notes American Express Credit 268,018 0.14% A- A2 American Honda Finance Corp 1,266,718 0.66% A+ A2 Apple Inc. 321,858 0.17% + Aa1 Bank of America 271,617 0.14% A- A3 Bank of New York Mellon Corp 222,757 0.12% A A1 Branch Banking & Trust 999,410 0.52% A A1 Caterpillar Financial Serv. 194,762 0.1 A A3 Exxon Mobile Corp 138,033 0.07% + Aaa General Dynamics 169,815 0.09% A+ A2 Hershey Co 144,820 0.08% A A1 Honeywell International 79,003 0.04% A A2 HSBC USA Inc 222,372 0.12% A A2 IBM Credit Corp 232,032 0.12% A+ A1 John Deere Capital Corp 1,107,436 0.58% A A2 JP Morgan Chase & Co 544,063 0.28% A- A3 National Rural Utility Coop 267,991 0.14% A A2 PepsiCo Inc. 133,985 0.07% A+ A1 Procter & Gamble 133,631 0.07% - Aa3 Toyota Motors Credit Corp 345,786 0.18% - Aa3 Wal-Mart Inc 453,878 0.24% Aa2 Wells Fargo & Company 271,508 0.14% A- A2 Federal Agencies & Instrumentalities Fannie Mae (FNMA) 8,074,723 4.21% + Aaa Federal Home Loan Bank (FHLB) 2,658,445 1.39% + Aaa Freddie Mac (FHLMC) 6,461,535 3.37% + Aaa Intergovernmental Investment Pool FL Educational Investment Trust Fund 33,387,720 17.4 Am Page 11 of 12

Percent of Investment Balance Investment (continued) Fair Value Municipal Bonds State of Connecticut taxable GO Bond 289,571 0.15% A+ A1 Money Market Funds Federated Government Obligations 488,816 0.25% Am Aaa-mf Obligation of United States government US Treasury Notes 77,917,375 40.61% + Aaa TOTAL $ 191,844,253 100.0 Cash Deposits: Qualified Public Depository $ 48,453,689 Petty cash & change funds 20,313 Fiscal service/agent (b) 42,619,906 TOTAL cash and investments $ 282,938,161 (a) Not rated Credit Ratings: S&P Moody's (b) Cash with fiscal agents include $16,703,655 held with Brevard County, FL that is comingled with other funds in consolidated bank accounts; $5,441,975 held with US Bank in First American Government Obligations and $20,429,046 held with US Bank in First American Treasury Obligations with a weighted average maturity of 20 days and 19 days, respectively. Funds held in First American are at a stable NAV of $1.00 per share, have a credit rating of Am and Aaamf by S&P and Moody's, and allow a maximum 7-day redemption of proceeds. These funds invest 10 of the total assets in securities that are a direct obligation of the U.S. government and/or in securities that are backed by the full faith and credit the U.S. governement or collaterized repurchase agreements comprised of such obligations at all times and are not subject to redemption fees or liquidity gates. The participants own a share of the fund and not a share of the underlying assets in the fund; Funds totaling $45,230 held with the State Board of Education and managed by the State Board of Administration. Page 12 of 12