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Palm Beach 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 December 31, 2015
Investment AdvisorsSteven Alexander, CTP, CGFO, CPPT, Managing DirectorRobert Cheddar, CFA, Chief Credit Officer, Managing DirectorD. Scott Stitcher, CFA, Senior Managing ConsultantRichard Pengelly, CFA, CTP, Senior Managing ConsultantRebecca Geyer, CTP, Senior Analyst
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Table of ContentsTab I.
Section A Market Review
Tab II.Section B Executive Summary & Investment Portfolio PerformanceSection C Short Term PortfolioSection D Asset Allocation Chart
Tab III. December 31, 2015 PFM Month-End Statement(statements are available online at www.pfm.com)
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
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
TAB I
Palm Beach County School District Investment Report – Quarter Ended December 31, 2015
PFM Asset Management LLC Section A-1
Summary
The Federal Open Market Committee (FOMC) increased the target federalfunds rate by 25 basis points (bps) (0.25%) at its December meeting — itsfirst rate hike since 2006. In doing so, the FOMC stressed its intention tonormalize rates at a gradual pace.
The year ended with strong job growth momentum as the economy added292,000 new jobs in December. This brought the 2015 tally to 2.65 millionnew jobs in total — enough to shrink the unemployment rate to 5%. Wageinflation edged up modestly, suggesting a chance for future inflation.
While the Federal Reserve (Fed) took the first step to normalize interestrates, other central banks have continued to implement accommodativemonetary policies. The European Central Bank (ECB) extended itsmonetary easing policy through the first quarter of 2017 and cut itsdeposit rate further into negative territory (‐0.3%). The Bank of Japan(BOJ) and People’s Bank of China (PBOC) also remain accommodative.
Economic Snapshot
U.S. gross domestic product (GDP) expanded at a 2% rate in the thirdquarter, down from the second quarter due to a reduction in inventoryaccumulation.
In a year‐end bipartisan negotiation, Congress passed a $1.1 trillionspending and tax budget, which also lifted the 40‐year ban on U.S. crudeoil exports.
Global commodity prices continued to fall, increasing concerns over globalgrowth and the sustainability of producers within the energy sector.Headlining this rout were oil prices, which continued to slide, sinking toless than $35 per barrel in December — the lowest level since February2009.
China continued to allow the yuan to weaken, ending the year at its lowestlevel versus the U.S. dollar in nearly six years. The Chinese economycontinued to slow — stoking market concern over the world’s second‐largest economy — though it is expected to meet its major economictargets for the year.
Interest Rates
The new target range for the federal funds rate, as established by theFOMC, is 25 to 50 bps, ending the FOMC’s seven‐year “zero interestrate policy.”
Interest rates across the curve moved up significantly throughout thequarter, with the 10‐year rising approximately 23 bps to 2.27% andthe two‐year moving almost 42 bps to 1.05%.
On the shorter end, 12‐month Treasury bills ticked up approximately30 bps to 0.60%.
Sector Performance
U.S. Treasury benchmark returns were negative for all but theshortest maturities (six months and under), as rates rose across thecurve. While the rate increase was less pronounced for longermaturities, their extended durations — and accompanying sensitivityto changes in rates — caused their performance to trail the greatest.
Non‐callable federal agency securities performed in line withcomparable maturity Treasuries; callable securities modestlyoutperformed as their incremental yield helped as rates rose.
Corporate yield spreads reversed the prior quarter’s widening, whichhelped the sector to outperform government‐related sectors;however, absolute return was still negative. A‐rated issuers were thebest‐performing quality category.
Mortgage‐backed securities (MBS) were among the strongest‐performing sectors in the fourth quarter, aided by slowly rising long‐term rates, which helped to slow prepayments; this was particularlytrue for higher coupon issues. MBS joined municipals as the lonesectors to produce positive performance for the quarter.
Palm Beach County School District Investment Report – Quarter Ended December 31, 2015
PFM Asset Management LLC Section A-2
Source: Bloomberg
Economic SnapshotLabor Market Sep 2015 Dec 2014
Unemployment Rate Dec'15 5.0% 5.1% 5.6%
Change In Non-Farm Payrolls Dec'15 292,000 145,000 329,000
Average Hourly Earnings (YoY) Dec'15 2.5% 2.3% 1.8%
Personal Income (YoY) Nov'15 4.4% 4.6% 5.2%
Initial Jobless Claims (week) 1/1/16 277,000 276,000 293,000
Growth
Real GDP (QoQ SAAR) 2015Q3 2.0% 3.9% 4.3%
GDP Personal Consumption (QoQ SAAR) 2015Q3 3.0% 3.6% 3.5%
Retail Sales (YoY) Nov'15 1.4% 2.2% 3.3%
ISM Manufacturing Survey (month) Dec'15 48.2 50.2 55.1
Existing Home Sales SAAR (month) Nov'15 4.76 mil. 5.55 mil. 5.07 mil.
Inflation / Prices
Personal Consumption Expenditures (YoY) Nov'15 0.4% 0.2% 0.8%
Consumer Price Index (YoY) Nov'15 0.5% 0.0% 0.8%
Consumer Price Index Core (YoY) Nov'15 2.0% 1.9% 1.6%
Crude Oil Futures (WTI, per barrel) Dec 31 $37.04 $45.09 $53.27
Gold Futures (oz.) Dec 31 $1,060 $1,116 $1,184
1. Data as of Second Quarter 2015 2. Data as of Third 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%
10%
12/31/12 6/30/13 12/31/13 6/30/14 12/31/14 6/30/15 12/31/15
Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right)
Change In Non-Farm PayrollsUnemployment Rate
-2%
0%
2%
4%
6%
9/30/12 3/31/13 9/30/13 3/31/14 9/30/14 3/31/15 9/30/15
Real GDP (QoQ)
-1%
0%
1%
2%
3%
12/31/12 6/30/13 12/31/13 6/30/14 12/31/14 6/30/15
Consumer Price Index
CPI (YoY) Core CPI (YoY)
2
2
1
1
Palm Beach County School District Investment Report – Quarter Ended December 31, 2015
PFM Asset Management LLC Section A-3
Source: Bloomberg
Investment Rate Overview
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
9/30/15 10/31/15 11/30/15 12/31/15
Yiel
d
U.S. Treasury Note Yields
2-Year 5-Year 10-Year
-1%
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
December 31, 2015 September 30, 2015 December 31, 2014
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 12/31/2015
U.S. Treasury Federal Agency Industrial Corporates, A Rated
Maturity 12/31/15 9/30/15Change
over Quarter
12/31/14 Change over Year
3-month 0.17% (0.02%) 0.19% 0.04% 0.13%
1-year 0.60% 0.31% 0.29% 0.22% 0.38%
2-year 1.05% 0.63% 0.42% 0.67% 0.38%
5-year 1.76% 1.36% 0.40% 1.65% 0.11%
10-year 2.27% 2.04% 0.23% 2.17% 0.10%
30-year 3.02% 2.85% 0.17% 2.75% 0.27%
U.S. Treasury Yields
Palm Beach County School District Investment Report – Quarter Ended December 31, 2015
PFM Asset Management LLC Section A-4
BofA Merrill Lynch Index Returns
Duration Yield 3 Month 1 Year 3 Years
1-3 Year IndicesU.S. Treasury 1.87 1.06% (0.44%) 0.54% 0.51%
Federal Agency 1.73 1.14% (0.37%) 0.69% 0.61%
U.S. Corporates, A-AAA rated 1.90 1.82% (0.05%) 1.16% 1.22%
Agency MBS (0 to 3 years) 1.89 1.46% 0.98% 1.68% 1.20%
Municipals 1.84 0.96% (0.08%) 0.76% 0.85%
1-5 Year IndicesU.S. Treasury 2.70 1.29% (0.66%) 0.98% 0.67%
Federal Agency 2.20 1.31% (0.49%) 0.97% 0.76%
U.S. Corporates, A-AAA rated 2.71 2.13% (0.16%) 1.52% 1.59%
Agency MBS (0 to 5 years) 3.35 2.23% 0.16% 1.22% 1.69%
Municipals 2.52 1.15% 0.08% 1.20% 1.24%
Master Indices (Maturities 1 Year or Greater)U.S. Treasury 6.19 1.77% (0.93%) 0.83% 1.09%
Federal Agency 3.75 1.69% (0.65%) 0.99% 1.05%
U.S. Corporates, A-AAA rated 6.64 3.08% (0.09%) 0.67% 1.97%
Agency MBS (0 to 30 years) 4.53 2.63% (0.06%) 1.46% 2.00%
Municipals 6.74 2.34% 1.72% 3.55% 3.35%
Returns for periods greater than one year are annualized
Source: BofA Merrill Lynch Indices
Returns for Periods ended 12/31/2015As of 12/31/2015
Palm Beach County School District Investment Report – Quarter Ended December 31, 2015
PFM Asset Management LLC Section A-5
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.
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
TAB II
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Executive Summary
PORTFOLIO STRATEGY
The District’s Investment Portfolio is of high credit quality and invested in U.S. Treasury, Federal Agency, high quality corporate, commercial paper, and municipal securities.
PFM continued to actively manage the Investment Portfolio during the fourth quarter and found value in the market, taking advantage of market inefficiencies or changes in economic outlook. As a result, the Portfolio realized $6,436 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 Investment Portfolio’s quarterly total return performance of -0.35%, outperformed the benchmark’s performance of -0.44% by 0.09%. Over the past year, the Portfolio earned 0.54%, versus 0.54% for the benchmark.
The Short Term Portfolio continues to provide the District with favorable yield relative to the benchmark. At quarter end, the portfolio had a Yield to Maturity at Cost of 0.52%, exceeding the Yield to Maturity of its benchmark, the Merrill Lynch 3 Month U.S. Treasury Bill Index, by 45 basis points (0.45%).
PFMAM maintained a modestly defensive duration position for much of the quarter as rates trended higher. As rates approached the upper end of recent ranges ahead of the FOMC meeting, we extended portfolio durations from short of the benchmark’s duration to a near-neutral position; this more closely aligned portfolio durations with the durations of their respective benchmarks.
Ahead of the December FOMC meeting, market expectations were for an initial Fed Funds hike, supported by assurances that future policy changes would be gradual. Market reaction after the FOMC’s announcement to raise the target range for the federal funds rate was relatively subdued, evidence that the action was in line with these expectations, a goal of the FOMC’s effort to provide transparency to investors.
Recent FOMC projections indicate that Committee members anticipate that three or four rate hikes may be appropriate in 2016 – projections that most market participants believe to be overstated. We believe that expectations for low inflation will limit this year’s rate hikes to two or three, and that short term yields will trend only modestly higher in the near term. We expect long-term rates to remain within modest ranges, resulting in further flattening of the yield curve.
We maintain the outlook that the economy will continue to expand at a moderate pace in the intermediate term. We will continue to monitor any spillover effect that modest global growth and muted inflation may have on the U.S. economy. These factors will help justify the FOMC’s stated intention to remain patient in the pace at which it raises the federal funds rate.
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
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Investment Portfolio PerformanceTotal Portfolio Value1 December 31, 2015 September 30, 2015
Market Value $48,318,270.39 $48,716,520.70Amortized Cost $48,420,385.68 $48,532,007.19
Quarterly Return Last Last Last Last Since InceptionTotal Return2,3,4,5 December 31, 2015 12 Months 3 Years 7 Years 10 Years December 31, 1998$Investment Portfolio -0.35% 0.54% 0.53% 1.24% 2.68% 3.35%Merrill Lynch 1-3 Year U.S. Treasury Note Index -0.44% 0.54% 0.51% 0.95% 2.42% 3.14%
Effective Duration (Years)4,5 December 31, 2015 September 30, 2015 Yields December 31, 2015 September 30, 2015Investment Portfolio 1.80 1.62 Yield at Market 1.10% 0.65%Merrill Lynch 1-3 Year U.S. Treasury Note Index 1.80 1.87 Yield at Cost 0.99% 0.88%Portfolio Duration % of Benchmark Duration 100% 86%
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. Excludes 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.
-0.35%
-0.44%
-0.75%
-0.50%
-0.25%
0.00%
1.00 1.50 2.00 2.50 3.00
Ret
urn
Effective Duration (Years)
Quarter Total Return Comparison Quarter Ended 12/31/15
Investment Portfolio
ML 1-3 Year U.S. Treasury Note Index
3.35%
3.14%
2.75%
3.00%
3.25%
3.50%
3.75%
1.00 1.50 2.00 2.50 3.00R
etur
n
Effective Duration (Years)
Since Inception Total Return Comparison Period Ended 12/31/15
Investment Portfolio
ML 1-3 Year U.S. Treasury Note Index
PFM Asset Management LLC Section B - 2
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Investment Portfolio Composition and Credit Quality Characteristics
Security Type1 December 31, 2015 % of Portfolio September 30, 2015 % of Portfolio
U.S. Treasuries $32,693,184.27 67.7% $31,783,110.89 65.2%
Federal Agencies 7,626,151.49 15.8% 7,655,585.52 15.7%
Commercial Paper 0.00 0.0% 0.00 0.0%
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 2,076,753.38 4.3% 2,358,101.08 4.8%
Corporate Notes/Bonds 5,922,181.25 12.3% 6,919,723.21 14.2%
Corporate Notes/Bonds - FDIC Insured 0.00 0.0% 0.00 0.0%
Mortgage Backed 0.00 0.0% 0.00 0.0%
Money Market Fund/Cash 0.00 0.0% 0.00 0.0%
Totals $48,318,270.39 100.0% $48,716,520.70 100.0%
Notes:
1. End of quarter trade-date market values of portfolio holdings, including accrued interest.
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. Treasuries
67.66%
Federal Agency
Obligations15.78%
Municipal Obligations
4.30%
Corporate Notes/Bonds
12.26%
Portfolio Composition as of 12/31/15
AA+85.91%
AA9.10%
AA-4.99%
Credit Quality Distribution² as of 12/31/15
PFM Asset Management LLC Section B - 3
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Investment Portfolio Maturity Distribution
Maturity Distribution1 December 31, 2015 September 30, 2015
Overnight (Money Market Fund) $0.00 $0.00
Under 6 Months 2,076,753.38 277,540.08
6 - 12 Months 3,437,966.36 7,539,359.07
1 - 2 Years 21,551,523.75 30,050,053.06
2 - 3 Years 16,490,354.63 10,849,568.49
3 - 4 Years 4,761,672.27 0.00
4 - 5 Years 0.00 0.00
5 Years and Over 0.00 0.00
Totals $48,318,270.39 $48,716,520.70
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.
0.0% 4.3% 7.1%
44.6%
34.1%
9.9%
0.0% 0.0%0.0% 0.6%
15.5%
61.7%
22.3%
0.0% 0.0% 0.0%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Overnight Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5 Years and Over
Perc
enta
ge o
f Tot
al P
ortfo
lio
Portfolio Maturity Distribution¹December 31, 2015
September 30, 2015
PFM Asset Management LLC Section B - 4
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Investment Portfolio 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
Investment Portfolio Merrill Lynch 1-3 Year U.S. Treasury Note Index
PFM Asset Management LLC Section B - 5
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Trade Analysis for October 8, 2015
Transaction Date: October 8, 2015
Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional EarningsSold US TREASURY NOTES 8/31/2016 $1,475,000.00 $100.5898 0.338% $6,229.75Purchased US TREASURY NOTES 9/30/2018 $1,475,000.00 $101.2812 0.936% 0.598% 8,036.46Total Estimated Benefit from Transaction to Original Maturity $14,266.21
Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional EarningsSold US TREASURY NOTES 11/30/2016 $1,150,000.00 $100.5313 0.408% $2,162.03Purchased US TREASURY NOTES 9/30/2018 $1,125,000.00 $101.2812 0.936% 0.528% 6,906.95Total Estimated Benefit from Transaction to Original Maturity $9,068.98
Total Estimated Benefit from Transactions $23,335.19
Transaction Commentary:
Notes:
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.
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 Section B - 6
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Trade Analysis for November 5, 2015
Transaction Date: November 5, 2015
Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional EarningsSold US TREASURY NOTES 11/30/2016 $3,100,000.00 $100.3281 0.563% $317.38Purchased US TREASURY NOTES 10/31/2018 $3,080,000.00 $100.2852 1.152% 0.589% 19,700.01Total Estimated Benefit from Transaction to Original Maturity $20,017.39
Transaction Commentary:
Notes:
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 duration of the portfolio 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.
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 Section B - 7
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Trade Analysis for November 10, 2015
Transaction Date: November 10, 2015
Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional EarningsSold COCA-COLA CO/THE GLOBAL NOTES 11/1/2016 $450,000.00 $100.1230 0.621% $720.13Purchased US TREASURY NOTES 10/31/2016 $450,000.00 $100.3789 0.602% -0.019% (85.00)Total Estimated Benefit from Transaction to Original Maturity $635.14
Total Estimated Benefit from Transactions $635.14
Transaction Commentary:
Notes:
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 3) the quality of the investment has been improved, 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.
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 Section B - 8
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Trade Analysis for November 12, 2015
Transaction Date: November 12, 2015
Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional EarningsSold CHEVRON CORP GLOBAL NOTES 6/24/2016 $530,000.00 $100.2650 0.448% $1,404.50Purchased US TREASURY NOTES 6/30/2016 $525,000.00 $100.6523 0.444% -0.004% (12.80)Total Estimated Benefit from Transaction to Original Maturity $1,391.70
Total Estimated Benefit from Transactions $1,391.70
Transaction Commentary:
Notes:
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 3) the quality of the investment has been improved, 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.
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 Section B - 9
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Trade Analysis for December 1, 2015
Transaction Date: December 1, 2015
Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional EarningsSold US TREASURY NOTES 6/30/2016 $525,000.00 $100.5820 0.482% ($114.32)Purchased US TREASURY NOTES 12/31/2018 $525,000.00 $100.8281 1.225% 0.742% 2,295.25Total Estimated Benefit from Transaction to Original Maturity $2,180.93
Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional EarningsSold US TREASURY NOTES 10/31/2016 $450,000.00 $100.2891 0.680% (316.25) Purchased US TREASURY NOTES 12/31/2018 $450,000.00 $100.8281 1.225% 0.545% 2,282.19Total Estimated Benefit from Transaction to Original Maturity $1,965.94
Transaction Security Par Value Price Yield at Market Benefit Gain/Loss Additional EarningsSold US TREASURY NOTES 11/30/2016 $1,550,000.00 $100.1602 0.712% 1,437.35 Purchased US TREASURY NOTES 12/31/2018 $1,725,000.00 $100.8281 1.225% 0.512% 8,050.94Total Estimated Benefit from Transaction to Original Maturity 8,050.94
Total Estimated Benefit from Transactions $12,197.81
Transaction Commentary:
Notes:
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.
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 Section B - 10
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Trade Analysis for December 28, 2015
Transaction Date: December 28, 2015
Transaction Security Maturity Date Par Value Price Yield at Market Benefit Gain/Loss Additional EarningsSold US TREASURY NOTES 11/30/2016 $2,080,000.00 $100.1094 0.755% ($2,529.13)Purchased US TREASURY NOTES 12/31/2018 $2,040,000.00 $100.4453 1.348% 0.593% 11,359.84Total Estimated Benefit from Transaction to Original Maturity $8,830.71
Total Estimated Benefit from Transactions $8,830.71
Transaction Commentary:
Notes:
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 duration of the portfolio 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.
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 Section B - 11
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Short Term Portfolio Statistics
Amortized Cost1,2,3 Amortized Cost1,2,3 Market Value1,2,3 Market Value1,2,3 Duration (Years)Account Name December 31, 2015 September 30, 2015 December 31, 2015 September 30, 2015 December 31, 2015
Short Term Portfolio $426,481,430.62 N/A $426,527,171.37 N/A 0.35
Yield to Maturity Yield to Maturity Yield to Maturity Yield to Maturityat Cost4 at Cost4 at Market at Market Duration (Years)
Account Name December 31, 2015 September 30, 2015 December 31, 2015 September 30, 2015 September 30, 2015
Short Term Portfolio 0.52% N/A 0.50% N/A N/A
Benchmarks December 31, 2015 September 30, 2015
Merrill Lynch 3 Month U.S. Treasury Bill Index5 0.07% 0.00%
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 any money market fund/cash balances held in custodian account.
4. Past performance is not indicative of future results.
5. Month end yield, source Bloomberg. Benchmark is pursuant to the Investment Policy.
PFM Asset Management LLC Section C - 1
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Short Term Composition and Credit Quality Characteristics
Security Type1 December 31, 2015 % of Portfolio September 30, 2015 % of Portfolio
Cash/ Money Market Fund $1,909,543.10 0.4% N/A N/A
U.S. Treasuries 200,015,455.52 46.9% N/A N/A
Federal Agencies 99,839,722.75 23.4% N/A N/A
Commercial Paper 124,762,450.00 29.3% N/A N/A
Certificates of Deposit 0.00 0.0% N/A N/A
Bankers Acceptances 0.00 0.0% N/A N/A
Repurchase Agreements 0.00 0.0% N/A N/A
Municipal Obligations 0.00 0.0% N/A N/A
Mortgage Backed 0.00 0.0% N/A N/A
Corporate Notes/Bonds 0.00 0.0% N/A N/A
Totals $426,527,171.37 100.0% N/A N/A
Notes:
1. End of quarter trade-date market values of portfolio holdings, including accrued interest.
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. Treasuries
46.89%
Cash/ Money Market Fund
0.45%
Federal Agencies23.41%
Commercial Paper
29.25%
Portfolio Compositionas of 12/31/15
AA+47.10%
A-1+ (Short-term)
29.39%
A-1 (Short-term)
23.51%
Credit Quality Distribution as of 12/31/15²
PFM Asset Management LLC Section C - 2
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
Short Term Maturity Distribution
Maturity Distribution1 December 31, 2015 September 30, 2015
Overnight $1,909,543.10 N/A
Under 6 Months 424,617,628.27 N/A
6 - 12 Months 0.00 N/A
1 - 2 Years 0.00 N/A
2 - 3 Years 0.00 N/A
3 - 4 Years 0.00 N/A
4 - 5 Years 0.00 N/A
5 Years and Over 0.00 N/A
Totals $426,527,171.37 N/A
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.
0%
99.6%
0.0% 0% 0% 0% 0% 0%0% 0% 0% 0% 0% 0% 0% 0%0%
20%
40%
60%
80%
100%
120%
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 Distribution¹December 31, 2015
September 30, 2015
PFM Asset Management LLC Section C - 3
Palm Beach County School District Asset Allocation as of December 31, 2015*
Security Type1Amortized Cost
(Includes Interest)Allocation
Percentage NotesPermitted by Policy
In Compliance
Florida Prime (SBA) 32,529.12 0.00% 2 25% YESUnited States Treasury Securities 232,753,423.46 25.12% 100% YESUnited States Government Agency Securities - 0.00% 50% YESFederal Instrumentalities 107,467,450.77 11.60% 3 80% YESMortgage-Backed Securities - 0.00% 3 20% YESCertificates of Deposit or Savings Accounts - 0.00% 25% YESRepurchase Agreements - 0.00% 50% YESCommercial Paper 124,758,521.00 13.46% 35% YESCorporate Notes 5,935,271.04 0.64% 15% YESBankers' Acceptances - 0.00% 35% YESState and/or Local Government Debt 2,077,606.93 0.22% 20% YESFixed Income Money Market Mutual Funds 82,119,761.22 8.86% 75% YESShort Term Bonds Funds - 0.00% 25% YESIntergovernmental Investment Pools - FEITF 190,325,541.50 20.54% 25% YESBank Cash 181,087,763.86 19.54% 2 100% YESNotes: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 December 31, 2015 is 11.60%.* No Bond Proceeds
© PFM Asset Management LLC D - 1
Florida Prime (SBA)0.00%
United States Treasury Securities
25.12%
Federal Instrumentalities
11.60%
Commercial Paper13.46%
Corporate Notes 0.64%
State and/or Local Government Debt
0.22%Fixed Income Money
Market Mutual Funds8.86%
Intergovernmental Investment Pools ‐
FEITF20.54%
Bank Cash19.54%
Palm Beach County School District Asset Allocation as of December 31, 2015
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% 50% YESFederal Home Loan Bank (FHLB) 101,543,345.09 10.96% 50% YESFederal National Mortgage Association (FNMA) 1,664,778.56 0.18% 50% YESFederal Home Loan Mortgage Corporation (FHLMC) 4,259,327.12 0.46% 50% YESRegional Transportation Authority Municipal Bonds 2,077,606.93 0.22% 20% YESApple, Inc. Corporate Notes 1,190,515.73 0.13% 5% YESBerkshire Hathaway, Inc. Corporate Notes 1,123,895.07 0.12% 5% YESChevron Corporation Corporate Notes 1,204,418.15 0.13% 5% YESIBM Corporation Corporate Notes 1,205,881.69 0.13% 5% YESToyota Motor Corporation Corporate Notes 1,210,560.40 0.13% 5% YESBank of Tokyo Mitsubishi, Inc. Commercial Paper 24,975,000.00 2.70% 10% YESBNP Paribas Commercial Paper 24,919,319.50 2.69% 10% YESCredit Agricole, S.A. Commercial Paper 24,979,000.00 2.70% 10% YESJP Morgan Chase & Company Commercial Paper 24,933,889.00 2.69% 10% YESToyota Motor Corporation Commercial Paper 24,951,312.50 2.69% 10% YESMoney Market Fund - TD Bank 1,909,543.10 0.21% 25% YESMoney Market Fund - Goldman Bank of America 40,102,032.69 6.32% 25% YESMoney Market Fund - Morgan Stanley 40,108,185.43 6.33% 25% YESFlorida Prime 32,529.12 0.01% 25% YES
© PFM Asset Management LLC D - 2
Palm Beach County School District Investment Report - Quarter Ended December 31, 2015
TAB III
PALM BEACH COUNTY SCHOOL DISTRICT, FL
ACCOUNT STATEMENT
For the Month Ending
December 31, 2015
Customer Service
PO Box 11813
Harrisburg, PA 17108-1813
Contents
Cover/Disclosures
Summary Statement
Individual Accounts
PALM BEACH COUNTY SCHOOL DISTRICT, FL
LEANNE EVANS
3300 FOREST HILL BLVD, A-334
WEST PALM BEACH, FL 33406-5813
Client Management Team
Accounts included in Statement
68890100 PALM BEACH CNTY FL S/D
68890170 PALM BEACH COUNTY SD SHORT TERM FUND
http://www.pfm.comOnline Access 1-717-232-2723Customer Service
Ed Polansky
Key Account Manager
PO Box 11813
Harrisburg, PA 17108
1-877-495-8246
polanskye@pfm.com
Robert Cheddar, CFA
Managing Director/Senior Portfolio Manager
One Keystone Plaza, Suite 300
Harrisburg, PA 17101
717-231-6202
cheddarr@pfm.com
Steven Alexander, CTP, CGFO
Managing Director
300 South Orange Avenue, Suite 1170
Orlando, FL 32801
407-406-5750
alexanders@pfm.com
For the Month Ending December 31, 2015
Account Statement
Important Disclosures
Important DisclosuresAverage maturity represents the average maturity of all securities and
investments of a portfolio, determined by multiplying the par or
principal value of each security or investment by its maturity (days or
years), summing the products, and dividing the sum by the total
principal value of the portfolio. The stated maturity date of mortgage
backed or callable securities are used in this statement. However the
actual maturity of these securities could vary depending on the level or
prepayments on the underlying mortgages or whether a callable
security has or is still able to be called.
Monthly distribution yield represents the net change in the value of one
share (normally $1.00 per share) resulting from all dividends declared
during the month by a fund expressed as a percentage of the value of
one share at the beginning of the month. This resulting net change is
then annualized by multiplying it by 365 and dividing it by the number of
calendar days in the month.
YTM at Cost The yield to maturity at cost is the expected rate of return,
based on the original cost, the annual interest receipts, maturity value
and the time period from purchase date to maturity, stated as a
percentage, on an annualized basis.
YTM at Market The yield to maturity at market is the rate of return,
based on the current market value, the annual interest receipts,
maturity value and the time period remaining until maturity, stated as a
percentage, on an annualized basis.
Managed Account A portfolio of investments managed discretely by
PFM according to the client’s specific investment policy and
requirements. The investments are directly owned by the client and
held by the client’s custodian.
Unsettled Trade A trade which has been executed however the final
consummation of the security transaction and payment has not yet
taken place.
Please review the detail pages of this statement carefully. If you think
your statement is wrong, missing account information, or if you need
more information about a transaction, please contact PFM within 60
days of receipt. If you have other concerns or questions regarding your
account you should contact a member of your client management team
or PFM Service Operations at the address below.
PFM Asset Management LLC
Attn: Service Operations
One Keystone Plaza, Suite 300
N. Front & Market Sts
Harrisburg, PA 17101
This statement is for general information purposes only and is not
intended to provide specific advice or recommendations. PFM Asset
Management LLC (“PFM”) is an investment advisor registered with the
Securities and Exchange Commission, and is required to maintain a
written disclosure statement of our background and business experience.
If you would like to receive a copy of our current disclosure statement,
please contact Service Operations at the address below.
Proxy Voting PFM does not normally receive proxies to vote on behalf of
its clients. However, it does on occasion receive consent requests. In the
event a consent request is received the portfolio manager contacts the
client and then proceeds according to their instructions. PFM’s Proxy
Voting Policy is available upon request by contacting Service Operations
at the address below.
Questions About an Account PFM’s monthly statement is intended to
detail our investment advisory activity as well as the activity of any
accounts held by clients in pools that are managed by PFM. The custodian
bank maintains the control of assets and executes (i.e., settles) all
investment transactions. The custodian statement is the official record of
security and cash holdings and transactions. PFM recognizes that clients
may use these reports to facilitate record keeping and that the custodian
bank statement and the PFM statement should be reconciled and
differences resolved. Many custodians use a settlement date basis which
may result in the need to reconcile due to a timing difference.
Account Control PFM does not have the authority to withdraw funds from
or deposit funds to the custodian. Our clients retain responsibility for their
internal accounting policies; implementing and enforcing internal controls
and generating ledger entries or otherwise recording transactions.
Market Value Generally, PFM’s market prices 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. Prices that fall
between data points are interpolated. Non-negotiable FDIC-insured bank
certificates of deposit are priced at par. Although PFM believes the prices
to be reliable, the values of the securities do not always represent the
prices at which the securities could have been bought or sold. Explanation
of the valuation methods for money market and TERM funds is contained
in the appropriate fund information statement.
Amortized Cost The original cost of the principal of the security is
adjusted for the amount of the periodic reduction of any discount or
premium from the purchase date until the date of the report. Discount or
premium with respect to short term securities (those with less than one
year to maturity at time of issuance) is amortized on a straightline basis.
Such discount or premium with respect to longer term securities is
amortized using the constant yield basis.
Tax Reporting Cost data and realized gains / losses are provided for
informational purposes only. Please review for accuracy and consult your
tax advisor to determine the tax consequences of your security transactions.
PFM does not report such information to the IRS or other taxing authorities
and is not responsible for the accuracy of such information that may be
required to be reported to federal, state or other taxing authorities.
Financial Situation In order to better serve you, PFM should be promptly
notified of any material change in your investment objective or financial
situation.
Callable Securities Securities subject to redemption prior to maturity may
be redeemed in whole or in part before maturity, which could affect the yield
represented.
Portfolio The securities in this portfolio, including shares of mutual funds,
are not guaranteed or otherwise protected by PFM, the FDIC (except for
certain non-negotiable certificates of deposit) or any government agency.
Investment in securities involves risks, including the possible loss of the
amount invested.
Rating Information provided for ratings is based upon a good faith inquiry of
selected sources, but its accuracy and completeness cannot be guaranteed.
Shares of some money market and TERM funds are marketed through
representatives of PFM's wholly owned subsidiary, PFM Fund Distributors,
Inc. PFM Fund Distributors, Inc. is registered with the SEC as a
broker/dealer and is a member of the Financial Industry Regulatory
Authority (“FINRA”) and the Municipal Securities Rulemaking Board
(“MSRB”). You may reach the FINRA by calling the FINRA Regulator Public
Disclosure Hotline at 1-888-289-9999 or at the FINRA Regulation Internet
website address www.nasd.com. A brochure describing the FINRA
Regulation Public Disclosure Program is also available from the FINRA
upon request.
Key Terms and Definitions
Dividends on money market funds consist of interest earned, plus any
discount ratably amortized to the date of maturity, plus all realized gains and
losses on the sale of securities prior to maturity, less ratable amortization of
any premium and all accrued expenses to the fund. Dividends are accrued
daily and may be paid either monthly or quarterly. The monthly earnings on
this statement represent the estimated dividend accrued for the month for
any program that distributes earnings on a quarterly basis. There is no
guarantee that the estimated amount will be paid on the actual distribution
date.
Current Yield is the net change, exclusive of capital changes and income
other than investment income, in the value of a hypothetical fund account
with a balance of one share over the seven-day base period including the
statement date, expressed as a percentage of the value of one share
(normally $1.00 per share) at the beginning of the seven-day period. This
resulting net change in account value is then annualized by multiplying it by
365 and dividing the result by 7. The yields quoted should not be considered
a representation of the yield of the fund in the future, since the yield is not
fixed.
For the Month Ending December 31, 2015
Account Statement
Consolidated Summary Statement
PALM BEACH COUNTY SCHOOL DISTRICT, FL
Investment Allocation
Investment Type Closing Market Value Percent
124,762,450.00 26.39 Commercial Paper
5,896,687.20 1.25 Corporate Note
7,602,411.90 1.61 Federal Agency Bond / Note
99,839,722.75 21.12 Federal Agency Discount Note
2,073,900.25 0.44 Municipal Bond / Note
232,559,363.20 49.19 U.S. Treasury Bond / Note
$472,734,535.30 Total 100.00%
Portfolio Summary
and Income
Closing
Market ValuePortfolio Holdings
Cash Dividends
PFM Managed Account (43,776.04) 472,734,535.30
($43,776.04) $472,734,535.30 Total
Maturity Distribution (Fixed Income Holdings)
Portfolio Holdings Closing Market Value Percent
0.00
24,990,394.00
74,927,202.25
276,712,576.75
53,418,100.55
21,492,002.29
16,432,782.52
4,761,476.94
0.00
0.00
0.00
5.28
15.85
58.53
11.30
4.55
3.48
1.01
0.00
0.00
Under 30 days
31 to 60 days
61 to 90 days
91 to 180 days
181 days to 1 year
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
Over 5 years
Total $472,734,535.30
183
100.00%
Weighted Average Days to Maturity
Sector Allocation
26.39%Commercial Paper
1.25%Corporate Note
1.61%
Fed Agy Bond /Note
21.12%Fed Agy DN
0.44%Muni Bond / Note
49.19%US TSY Bond / Note
Summary Page 1
For the Month Ending December 31, 2015
Account Statement
Consolidated Summary Statement
PALM BEACH COUNTY SCHOOL DISTRICT, FL
and Income
Closing Market
Value
Change in
Value Trades MaturitiesDeposits ValueAccount Name
Account
Number
Cash DividendsUnsettled Redemptions / Sales/Purchases /Opening Market
68890100 48,392,920.46 4,771,443.76 (4,889,113.86) (85,287.81) 48,189,962.55 0.00 (20,730.82)PALM BEACH CNTY FL S/D
68890170 0.00 424,397,199.42 0.00 147,373.33 424,544,572.75 0.00 (23,045.22)PALM BEACH COUNTY SD SHORT
TERM FUND
$48,392,920.46 $429,168,643.18 ($4,889,113.86) $62,085.52 $472,734,535.30 ($43,776.04)Total $0.00
Summary Page 2
For the Month Ending December 31, 2015Managed Account Summary Statement
PALM BEACH CNTY FL S/D - 68890100
Total Cash Basis Earnings
Plus Net Realized Gains/Losses
Less Purchased Interest Related to Interest/Coupons
Interest/Dividends/Coupons Received
Earnings Reconciliation (Cash Basis) - Managed Account
Less Beginning Accrued Interest
Less Beginning Amortized Value of Securities
Less Cost of New Purchases
Plus Coupons/Dividends Received
Plus Proceeds of Maturities/Calls/Principal Payments
Plus Proceeds from Sales
Ending Accrued Interest
Ending Amortized Value of Securities
Earnings Reconciliation (Accrual Basis)
$48,392,920.46
(275,000.00)
(4,614,113.86)
4,771,443.76
0.00
(85,287.81)
$48,189,962.55
43,720.06
(32,495.38)
(31,955.50)
($20,730.82)
Total
48,292,077.84
128,307.84
4,619,533.92
275,000.00
38,300.00
(4,803,939.14)
(48,414,666.74)
(100,052.63)
Total Accrual Basis Earnings $34,561.09
Closing Market Value
Change in Current Value
Unsettled Trades
Principal Acquisitions
Principal Dispositions
Maturities/Calls
Opening Market Value
Transaction Summary - Managed Account
_________________
_________________
_______________________________________________ _______________________________________________ Reconciling Transactions
Net Cash Contribution
Security Purchases
Principal Payments
Coupon/Interest/Dividend Income
Sale Proceeds
Maturities/Calls
Cash Transactions Summary - Managed Account
275,000.00
4,619,533.92
38,300.00
0.00
(4,803,939.14)
(128,894.78)
0.00
Cash Balance
$0.00 Closing Cash Balance
Account 68890100 Page 1
For the Month Ending December 31, 2015Portfolio Summary and Statistics
PALM BEACH CNTY FL S/D - 68890100
Account Summary
Percent Par Value Market ValueDescription
U.S. Treasury Bond / Note 32,660,000.00 32,616,963.20 67.68
Municipal Bond / Note 2,075,000.00 2,073,900.25 4.30
Federal Agency Bond / Note 7,610,000.00 7,602,411.90 15.78
Corporate Note 5,920,000.00 5,896,687.20 12.24
Managed Account Sub-Total 48,265,000.00 48,189,962.55 100.00%
Accrued Interest 128,307.84
Total Portfolio 48,265,000.00 48,318,270.39
Unsettled Trades 0.00 0.00
Sector Allocation
12.24%Corporate Note
15.78%
Fed Agy Bond /Note
4.30%Muni Bond / Note
67.68%US TSY Bond / Note
0 - 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Over 5 Years
4.30%
7.12%
44.60%
34.10%
9.88%
0.00% 0.00%
Maturity Distribution Characteristics
Yield to Maturity at Cost
Yield to Maturity at Market
Duration to Worst
Weighted Average Days to Maturity
1.80
669
0.99%
1.10%
Account 68890100 Page 2
For the Month Ending December 31, 2015Managed Account Issuer Summary
PALM BEACH CNTY FL S/D - 68890100
Credit Quality (S&P Ratings)
9.10%AA
85.93%AA+
4.97%AA-
Issuer Summary
Percentof HoldingsIssuer
Market Value
1,190,250.00 2.47 APPLE INC
1,120,627.20 2.33 BERKSHIRE HATHAWAY INC
1,190,397.60 2.47 CHEVRON CORP
1,659,785.16 3.44 FANNIE MAE
1,706,998.95 3.54 FEDERAL HOME LOAN BANKS
4,235,627.79 8.79 FREDDIE MAC
1,197,694.80 2.49 IBM CORP
2,073,900.25 4.30 REGIONAL TRANS AUTH, IL
1,197,717.60 2.49 TOYOTA MOTOR CORP
32,616,963.20 67.68 UNITED STATES TREASURY
$48,189,962.55 Total 100.00%
Account 68890100 Page 3
For the Month Ending December 31, 2015Managed Account Detail of Securities Held
PALM BEACH CNTY FL S/D - 68890100
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value
Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle
Par
U.S. Treasury Bond / Note
US TREASURY NOTES
DTD 01/31/2012 0.875% 01/31/2017
1,110,086.58 1,112,445.97 4,064.47 1,115,983.59 06/03/1406/02/14AaaAA+ 1,110,000.00 912828SC5 0.67
US TREASURY NOTES
DTD 01/31/2012 0.875% 01/31/2017
3,935,306.93 3,938,343.18 14,408.73 3,942,685.55 07/31/1407/29/14AaaAA+ 3,935,000.00 912828SC5 0.80
US TREASURY NOTES
DTD 03/31/2012 1.000% 03/31/2017
1,146,788.49 1,146,020.76 2,909.43 1,147,459.96 03/21/1403/19/14AaaAA+ 1,145,000.00 912828SM3 0.93
US TREASURY NOTES
DTD 04/30/2012 0.875% 04/30/2017
4,198,194.00 4,201,709.95 6,259.62 4,203,281.25 10/06/1410/01/14AaaAA+ 4,200,000.00 912828SS0 0.84
US TREASURY NOTES
DTD 07/31/2012 0.500% 07/31/2017
525,983.66 526,193.67 1,108.97 522,671.09 07/07/1407/01/14AaaAA+ 530,000.00 912828TG5 0.96
US TREASURY NOTES
DTD 07/31/2012 0.500% 07/31/2017
2,977,266.00 2,986,849.89 6,277.17 2,982,187.50 06/08/1506/05/15AaaAA+ 3,000,000.00 912828TG5 0.78
US TREASURY NOTES
DTD 08/31/2012 0.625% 08/31/2017
2,305,138.08 2,305,825.24 4,899.73 2,294,534.38 08/29/1408/28/14AaaAA+ 2,320,000.00 912828TM2 1.00
US TREASURY NOTES
DTD 04/30/2013 0.625% 04/30/2018
2,961,444.00 2,968,024.83 3,193.68 2,960,390.63 06/08/1506/05/15AaaAA+ 3,000,000.00 912828UZ1 1.09
US TREASURY NOTES
DTD 07/31/2013 1.375% 07/31/2018
3,011,484.00 3,020,759.49 17,262.23 3,024,609.38 07/06/1507/01/15AaaAA+ 3,000,000.00 912828VQ0 1.10
US TREASURY NOTES
DTD 09/30/2011 1.375% 09/30/2018
2,608,125.00 2,630,885.95 9,084.02 2,633,312.50 10/13/1510/08/15AaaAA+ 2,600,000.00 912828RH5 0.94
US TREASURY NOTES
DTD 10/31/2013 1.250% 10/31/2018
3,075,669.52 3,088,359.83 6,557.69 3,088,782.81 11/09/1511/05/15AaaAA+ 3,080,000.00 912828WD8 1.15
US TREASURY NOTES
DTD 12/31/2013 1.500% 12/31/2018
2,049,243.24 2,049,068.43 84.07 2,049,084.38 12/30/1512/28/15AaaAA+ 2,040,000.00 912828A75 1.35
US TREASURY NOTES
DTD 12/31/2013 1.500% 12/31/2018
2,712,233.70 2,721,823.18 111.26 2,722,359.38 12/04/1512/01/15AaaAA+ 2,700,000.00 912828A75 1.22
76,221.07 32,616,963.20 32,696,310.37 0.99 32,687,342.40 32,660,000.00 Security Type Sub-Total
Account 68890100 Page 4
For the Month Ending December 31, 2015Managed Account Detail of Securities Held
PALM BEACH CNTY FL S/D - 68890100
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value
Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle
Par
Municipal Bond / Note
REGIONAL TRANS AUTH, IL TXBL REV
BONDS
DTD 05/07/2014 0.550% 05/06/2016
2,073,900.25 2,074,753.80 2,853.13 2,073,589.00 05/07/1404/24/14Aa3AA 2,075,000.00 759911X88 0.58
2,853.13 2,073,900.25 2,074,753.80 0.58 2,073,589.00 2,075,000.00 Security Type Sub-Total
Federal Agency Bond / Note
FNMA NOTES
DTD 08/19/2011 1.250% 09/28/2016
602,174.40 602,220.42 1,937.50 608,868.00 10/03/1310/01/13AaaAA+ 600,000.00 3135G0CM3 0.75
FHLB NOTES
DTD 08/07/2014 0.500% 09/28/2016
1,706,998.95 1,708,661.84 2,208.75 1,706,152.50 08/07/1408/06/14AaaAA+ 1,710,000.00 3130A2T97 0.61
FREDDIE MAC GLOBAL NOTES
DTD 01/30/2012 1.000% 03/08/2017
1,075,891.18 1,077,650.61 3,374.31 1,079,547.25 02/23/1502/18/15AaaAA+ 1,075,000.00 3137EADC0 0.79
FREDDIE MAC GLOBAL NOTES
DTD 06/25/2012 1.000% 07/28/2017
1,207,987.77 1,209,920.16 5,142.50 1,209,849.96 08/14/1408/12/14AaaAA+ 1,210,000.00 3137EADJ5 1.00
FREDDIE MAC GLOBAL NOTES
DTD 06/25/2012 1.000% 07/28/2017
1,951,748.84 1,954,930.79 8,308.75 1,954,869.02 08/14/1408/12/14AaaAA+ 1,955,000.00 3137EADJ5 1.00
FNMA NOTES
DTD 08/25/2014 1.000% 09/27/2017
1,057,610.76 1,057,852.86 2,767.78 1,056,215.80 08/25/1408/21/14AaaAA+ 1,060,000.00 3135G0ZL0 1.12
23,739.59 7,602,411.90 7,611,236.68 0.88 7,615,502.53 7,610,000.00 Security Type Sub-Total
Corporate Note
BERKSHIRE HATHAWAY FIN GLOBAL NOTES
DTD 08/15/2013 0.950% 08/15/2016
1,120,627.20 1,119,875.51 4,019.56 1,119,406.40 08/15/1308/06/13Aa2AA 1,120,000.00 084664BX8 0.97
TOYOTA MOTOR CREDIT CORP NOTE
DTD 01/12/2015 1.450% 01/12/2018
1,197,717.60 1,202,392.07 8,168.33 1,202,988.00 06/25/1506/22/15Aa3AA- 1,200,000.00 89236TCA1 1.35
IBM CORP GLOBAL NOTES
DTD 02/08/2013 1.250% 02/08/2018
1,197,694.80 1,199,923.36 5,958.33 1,199,904.00 07/14/1507/09/15Aa3AA- 1,200,000.00 459200HK0 1.25
CHEVRON CORP NOTES
DTD 03/03/2015 1.365% 03/02/2018
1,190,397.60 1,199,003.65 5,414.50 1,198,764.00 06/25/1506/22/15Aa1AA 1,200,000.00 166764AV2 1.40
Account 68890100 Page 5
For the Month Ending December 31, 2015Managed Account Detail of Securities Held
PALM BEACH CNTY FL S/D - 68890100
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value
Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle
Par
Corporate Note
APPLE INC GLOBAL NOTES
DTD 05/03/2013 1.000% 05/03/2018
1,190,250.00 1,188,582.40 1,933.33 1,186,104.00 06/25/1506/22/15Aa1AA+ 1,200,000.00 037833AJ9 1.42
25,494.05 5,896,687.20 5,909,776.99 1.28 5,907,166.40 5,920,000.00 Security Type Sub-Total
48,265,000.00 48,283,600.33 0.99 128,307.84 48,292,077.84 48,189,962.55 Managed Account Sub-Total
$48,265,000.00 $48,283,600.33 $128,307.84 $48,292,077.84 $48,189,962.55 0.99%
$48,318,270.39
$128,307.84
Total Investments
Accrued Interest
Securities Sub-Total
Account 68890100 Page 6
For the Month Ending December 31, 2015Managed Account Fair Market Value & Analytics
PALM BEACH CNTY FL S/D - 68890100
Value On Cost Amort Cost to WorstCUSIP Broker Date PriceDated Date/Coupon/Maturity Par at Mkt
Market Unreal G/L Unreal G/L DurationNext Call MarketSecurity Type/Description YTMEffective
Duration
U.S. Treasury Bond / Note
1.07 (2,359.39)(5,897.01) 1,110,086.58 100.01 CITIGRP 1,110,000.00 912828SC5US TREASURY NOTES
DTD 01/31/2012 0.875% 01/31/2017
0.87 1.07
1.07 (3,036.25)(7,378.62) 3,935,306.93 100.01 MERRILL 3,935,000.00 912828SC5US TREASURY NOTES
DTD 01/31/2012 0.875% 01/31/2017
0.87 1.07
1.24 767.73 (671.47) 1,146,788.49 100.16 BARCLAYS 1,145,000.00 912828SM3US TREASURY NOTES
DTD 03/31/2012 1.000% 03/31/2017
0.87 1.24
1.32 (3,515.95)(5,087.25) 4,198,194.00 99.96 GOLDMAN 4,200,000.00 912828SS0US TREASURY NOTES
DTD 04/30/2012 0.875% 04/30/2017
0.91 1.32
1.57 (210.01) 3,312.57 525,983.66 99.24 MERRILL 530,000.00 912828TG5US TREASURY NOTES
DTD 07/31/2012 0.500% 07/31/2017
0.98 1.57
1.57 (9,583.89)(4,921.50) 2,977,266.00 99.24 JPMCHASE 3,000,000.00 912828TG5US TREASURY NOTES
DTD 07/31/2012 0.500% 07/31/2017
0.98 1.57
1.65 (687.16) 10,603.70 2,305,138.08 99.36 BARCLAYS 2,320,000.00 912828TM2US TREASURY NOTES
DTD 08/31/2012 0.625% 08/31/2017
1.01 1.65
2.30 (6,580.83) 1,053.37 2,961,444.00 98.71 MERRILL 3,000,000.00 912828UZ1US TREASURY NOTES
DTD 04/30/2013 0.625% 04/30/2018
1.19 2.30
2.52 (9,275.49)(13,125.38) 3,011,484.00 100.38 CITIGRP 3,000,000.00 912828VQ0US TREASURY NOTES
DTD 07/31/2013 1.375% 07/31/2018
1.22 2.52
2.68 (22,760.95)(25,187.50) 2,608,125.00 100.31 MERRILL 2,600,000.00 912828RH5US TREASURY NOTES
DTD 09/30/2011 1.375% 09/30/2018
1.26 2.68
2.77 (12,690.31)(13,113.29) 3,075,669.52 99.86 MERRILL 3,080,000.00 912828WD8US TREASURY NOTES
DTD 10/31/2013 1.250% 10/31/2018
1.30 2.77
2.93 174.81 158.86 2,049,243.24 100.45 JPMCHASE 2,040,000.00 912828A75US TREASURY NOTES
DTD 12/31/2013 1.500% 12/31/2018
1.35 2.93
2.93 (9,589.48)(10,125.68) 2,712,233.70 100.45 MERRILL 2,700,000.00 912828A75US TREASURY NOTES
DTD 12/31/2013 1.500% 12/31/2018
1.35 2.93
(70,379.20) 1.10 2.01 (79,347.17) 32,616,963.20 32,660,000.00 Security Type Sub-Total 2.01
Municipal Bond / Note
0.35 (853.55) 311.25 2,073,900.25 99.95 JPMCHASE 2,075,000.00 759911X88REGIONAL TRANS AUTH, IL TXBL REV
BONDS
DTD 05/07/2014 0.550% 05/06/2016
0.70 0.35
311.25 0.70 0.35 (853.55) 2,073,900.25 2,075,000.00 Security Type Sub-Total 0.35
Account 68890100 Page 7
For the Month Ending December 31, 2015Managed Account Fair Market Value & Analytics
PALM BEACH CNTY FL S/D - 68890100
Value On Cost Amort Cost to WorstCUSIP Broker Date PriceDated Date/Coupon/Maturity Par at Mkt
Market Unreal G/L Unreal G/L DurationNext Call MarketSecurity Type/Description YTMEffective
Duration
Federal Agency Bond / Note
0.74 (46.02)(6,693.60) 602,174.40 100.36 RBS_SEC 600,000.00 3135G0CM3FNMA NOTES
DTD 08/19/2011 1.250% 09/28/2016
0.76 0.74
0.74 (1,662.89) 846.45 1,706,998.95 99.82 MORGANST 1,710,000.00 3130A2T97FHLB NOTES
DTD 08/07/2014 0.500% 09/28/2016
0.74 0.74
1.17 (1,759.43)(3,656.07) 1,075,891.18 100.08 JEFFERIE 1,075,000.00 3137EADC0FREDDIE MAC GLOBAL NOTES
DTD 01/30/2012 1.000% 03/08/2017
0.93 1.17
1.55 (1,932.39)(1,862.19) 1,207,987.77 99.83 BARCLAYS 1,210,000.00 3137EADJ5FREDDIE MAC GLOBAL NOTES
DTD 06/25/2012 1.000% 07/28/2017
1.11 1.55
1.55 (3,181.95)(3,120.18) 1,951,748.84 99.83 BARCLAYS 1,955,000.00 3137EADJ5FREDDIE MAC GLOBAL NOTES
DTD 06/25/2012 1.000% 07/28/2017
1.11 1.55
1.71 (242.10) 1,394.96 1,057,610.76 99.77 MORGANST 1,060,000.00 3135G0ZL0FNMA NOTES
DTD 08/25/2014 1.000% 09/27/2017
1.13 1.71
(13,090.63) 0.97 1.27 (8,824.78) 7,602,411.90 7,610,000.00 Security Type Sub-Total 1.27
Corporate Note
0.62 751.69 1,220.80 1,120,627.20 100.06 WELLSFAR 1,120,000.00 084664BX8BERKSHIRE HATHAWAY FIN GLOBAL
NOTES
DTD 08/15/2013 0.950% 08/15/2016
0.86 0.62
1.98 (4,674.47)(5,270.40) 1,197,717.60 99.81 WELLSFAR 1,200,000.00 89236TCA1TOYOTA MOTOR CREDIT CORP NOTE
DTD 01/12/2015 1.450% 01/12/2018
1.55 1.98
2.06 (2,228.56)(2,209.20) 1,197,694.80 99.81 JPMCHASE 1,200,000.00 459200HK0IBM CORP GLOBAL NOTES
DTD 02/08/2013 1.250% 02/08/2018
1.34 2.06
2.12 (8,606.05)(8,366.40) 1,190,397.60 99.20 WELLSFAR 1,200,000.00 166764AV2CHEVRON CORP NOTES
DTD 03/03/2015 1.365% 03/02/2018
1.74 2.12
2.30 1,667.60 4,146.00 1,190,250.00 99.19 WELLSFAR 1,200,000.00 037833AJ9APPLE INC GLOBAL NOTES
DTD 05/03/2013 1.000% 05/03/2018
1.35 2.30
(10,479.20) 1.37 1.83 (13,089.79) 5,896,687.20 5,920,000.00 Security Type Sub-Total 1.83
48,265,000.00 48,189,962.55 (93,637.78) (102,115.29) 1.80 1.10 Managed Account Sub-Total 1.80
Account 68890100 Page 8
For the Month Ending December 31, 2015Managed Account Fair Market Value & Analytics
PALM BEACH CNTY FL S/D - 68890100
Total Investments $48,318,270.39
$128,307.84
$48,189,962.55
Accrued Interest
Securities Sub-Total $48,265,000.00 ($93,637.78) ($102,115.29) 1.80 1.10% 1.80
Account 68890100 Page 9
For the Month Ending December 31, 2015Managed Account Security Transactions & Interest
PALM BEACH CNTY FL S/D - 68890100
Transaction Type
Trade CUSIPSecurity DescriptionSettle Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
BUY
12/04/15 US TREASURY NOTES
DTD 12/31/2013 1.500% 12/31/2018
912828A75 (2,722,359.38) (17,278.53) (2,739,637.91) 2,700,000.00 12/01/15
12/30/15 US TREASURY NOTES
DTD 12/31/2013 1.500% 12/31/2018
912828A75 (2,049,084.38) (15,216.85) (2,064,301.23) 2,040,000.00 12/28/15
(32,495.38) (4,803,939.14)(4,771,443.76) 4,740,000.00 Transaction Type Sub-Total
INTEREST
12/01/15 MS ST TXBL GO BONDS
DTD 12/03/2013 2.000% 12/01/2015
605581DQ7 0.00 2,750.00 2,750.00 275,000.00 12/01/15
12/31/15 US TREASURY NOTES
DTD 12/31/2013 1.500% 12/31/2018
912828A75 0.00 20,250.00 20,250.00 2,700,000.00 12/31/15
12/31/15 US TREASURY NOTES
DTD 12/31/2013 1.500% 12/31/2018
912828A75 0.00 15,300.00 15,300.00 2,040,000.00 12/31/15
38,300.00 38,300.00 0.00 5,015,000.00 Transaction Type Sub-Total
MATURITY
12/01/15 MS ST TXBL GO BONDS
DTD 12/03/2013 2.000% 12/01/2015
605581DQ7 275,000.00 0.00 275,000.00 (7,843.00) 0.00 275,000.00 12/01/15
0.00 0.00 (7,843.00) 275,000.00 275,000.00 275,000.00 Transaction Type Sub-Total
SELL
12/04/15 US TREASURY NOTES
DTD 06/30/2011 1.500% 06/30/2016
912828QR4 528,055.66 3,359.71 531,415.37 (369.14) (114.32) SPEC LOT 525,000.00 12/01/15
12/04/15 US TREASURY NOTES
DTD 10/31/2011 1.000% 10/31/2016
912828RM4 451,300.78 420.33 451,721.11 (404.30) (316.25) SPEC LOT 450,000.00 12/01/15
12/04/15 US TREASURY NOTES
DTD 11/30/2011 0.875% 11/30/2016
912828RU6 130,208.20 12.43 130,220.63 (954.69) (178.45) SPEC LOT 130,000.00 12/01/15
12/04/15 US TREASURY NOTES
DTD 11/30/2011 0.875% 11/30/2016
912828RU6 1,422,274.22 135.79 1,422,410.01 (8,653.12) (1,258.90) SPEC LOT 1,420,000.00 12/01/15
12/30/15 US TREASURY NOTES
DTD 11/30/2011 0.875% 11/30/2016
912828RU6 2,082,275.00 1,491.80 2,083,766.80 (13,731.25) (2,529.13) SPEC LOT 2,080,000.00 12/28/15
5,420.06 (4,397.05)(24,112.50) 4,619,533.92 4,614,113.86 4,605,000.00 Transaction Type Sub-Total
Account 68890100 Page 10
For the Month Ending December 31, 2015Managed Account Security Transactions & Interest
PALM BEACH CNTY FL S/D - 68890100
Transaction Type
Trade CUSIPSecurity DescriptionSettle Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
117,670.10 11,224.68 128,894.78 (31,955.50) (4,397.05)Managed Account Sub-Total
Total Security Transactions ($31,955.50)$128,894.78 $11,224.68 $117,670.10 ($4,397.05)
Account 68890100 Page 11
For the Month Ending December 31, 2015Managed Account Summary Statement
PALM BEACH COUNTY SD SHORT TERM FUND - 68890170
Total Cash Basis Earnings
Plus Net Realized Gains/Losses
Less Purchased Interest Related to Interest/Coupons
Interest/Dividends/Coupons Received
Earnings Reconciliation (Cash Basis) - Managed Account
Less Beginning Accrued Interest
Less Beginning Amortized Value of Securities
Less Cost of New Purchases
Plus Coupons/Dividends Received
Plus Proceeds of Maturities/Calls/Principal Payments
Plus Proceeds from Sales
Ending Accrued Interest
Ending Amortized Value of Securities
Earnings Reconciliation (Accrual Basis)
$0.00
0.00
0.00
424,397,199.42
0.00
147,373.33
$424,544,572.75
125,005.80
(148,051.02)
0.00
($23,045.22)
Total
424,498,832.00
73,055.52
0.00
0.00
125,005.80
(424,545,250.44)
0.00
0.00
Total Accrual Basis Earnings $151,642.88
Closing Market Value
Change in Current Value
Unsettled Trades
Principal Acquisitions
Principal Dispositions
Maturities/Calls
Opening Market Value
Transaction Summary - Managed Account
_________________
_________________
_______________________________________________ _______________________________________________ Reconciling Transactions
Net Cash Contribution
Security Purchases
Principal Payments
Coupon/Interest/Dividend Income
Sale Proceeds
Maturities/Calls
Cash Transactions Summary - Managed Account
0.00
0.00
125,005.80
0.00
(424,545,250.44)
425,128,894.78
0.00
Cash Balance
$1,909,543.10 Closing Cash Balance
Account 68890170 Page 1
For the Month Ending December 31, 2015Portfolio Summary and Statistics
PALM BEACH COUNTY SD SHORT TERM FUND - 68890170
Account Summary
Percent Par Value Market ValueDescription
U.S. Treasury Bond / Note 200,000,000.00 199,942,400.00 47.09
Federal Agency Discount Note 100,000,000.00 99,839,722.75 23.52
Commercial Paper 125,000,000.00 124,762,450.00 29.39
Managed Account Sub-Total 425,000,000.00 424,544,572.75 100.00%
Accrued Interest 73,055.52
Total Portfolio 425,000,000.00 424,617,628.27
Unsettled Trades 0.00 0.00
Sector Allocation
29.39%Commercial Paper
23.52%Fed Agy DN
47.09%US TSY Bond / Note
0 - 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Over 5 Years
88.23%
11.77%
0.00% 0.00% 0.00% 0.00% 0.00%
Maturity Distribution Characteristics
Yield to Maturity at Cost
Yield to Maturity at Market
Duration to Worst
Weighted Average Days to Maturity
0.35
128
0.52%
0.50%
Account 68890170 Page 2
For the Month Ending December 31, 2015Managed Account Issuer Summary
PALM BEACH COUNTY SD SHORT TERM FUND - 68890170
Credit Quality (S&P Ratings)
23.51%A-1
29.39%A-1+
47.10%AA+
Issuer Summary
Percentof HoldingsIssuer
Market Value
24,916,500.00 5.87 BNP PARIBAS
24,977,475.00 5.88 CREDIT AGRICOLE SA
99,839,722.75 23.52 FEDERAL HOME LOAN BANKS
24,947,675.00 5.88 JP MORGAN CHASE & CO
24,969,450.00 5.88 MITSUBISHI UFJ FINANCIAL GROUP INC
24,951,350.00 5.88 TOYOTA MOTOR CORP
199,942,400.00 47.09 UNITED STATES TREASURY
$424,544,572.75 Total 100.00%
Account 68890170 Page 3
For the Month Ending December 31, 2015Managed Account Detail of Securities Held
PALM BEACH COUNTY SD SHORT TERM FUND - 68890170
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value
Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle
Par
U.S. Treasury Bond / Note
US TREASURY NOTES
DTD 04/30/2014 0.375% 04/30/2016
24,997,075.00 25,000,000.00 15,968.41 25,000,000.00 12/03/1512/03/15AaaAA+ 25,000,000.00 912828C81 0.37
US TREASURY NOTES
DTD 04/30/2014 0.375% 04/30/2016
49,994,150.00 49,985,145.50 31,936.81 49,982,421.88 12/10/1512/09/15AaaAA+ 50,000,000.00 912828C81 0.47
US TREASURY NOTES
DTD 05/15/2013 0.250% 05/15/2016
24,982,425.00 24,986,334.00 8,070.05 24,983,398.44 12/03/1512/03/15AaaAA+ 25,000,000.00 912828VC1 0.40
US TREASURY NOTES
DTD 06/02/2014 0.375% 05/31/2016
49,980,450.00 49,962,495.50 16,393.44 49,957,031.25 12/10/1512/09/15AaaAA+ 50,000,000.00 912828WM8 0.56
US TREASURY NOTES
DTD 06/30/2014 0.500% 06/30/2016
49,988,300.00 49,973,861.50 686.81 49,970,703.13 12/10/1512/09/15AaaAA+ 50,000,000.00 912828WQ9 0.61
73,055.52 199,942,400.00 199,907,836.50 0.50 199,893,554.70 200,000,000.00 Security Type Sub-Total
Federal Agency Discount Note
FHLB DISC NOTE
-- 0.000% 02/17/2016
24,990,394.00 24,990,698.00 0.00 24,984,958.33 12/03/1512/03/15P-1A-1+ 25,000,000.00 313384TE9 0.29
FEDERAL HOME LOAN BANKS DISC NOTE
-- 0.000% 03/17/2016
24,980,277.25 24,983,111.00 0.00 24,976,666.67 12/03/1512/03/15P-1A-1+ 25,000,000.00 313384UK3 0.32
FHLB DISC NOTE
-- 0.000% 06/08/2016
49,869,051.50 49,858,665.50 0.00 49,839,110.00 12/10/1512/09/15P-1A-1+ 50,000,000.00 313384XW4 0.64
0.00 99,839,722.75 99,832,474.50 0.47 99,800,735.00 100,000,000.00 Security Type Sub-Total
Commercial Paper
CREDIT AGRICOLE CIB NY COMM PAPER
-- 0.000% 03/04/2016
24,977,475.00 24,979,000.00 0.00 24,969,333.33 12/03/1512/03/15P-1A-1 25,000,000.00 22533TC46 0.48
BANK OF TOKYO MITSUBISHI COMM PAPER
-- 0.000% 03/21/2016
24,969,450.00 24,975,000.00 0.00 24,965,937.50 12/03/1512/03/15P-1A-1 25,000,000.00 06538BCM3 0.45
TOYOTA MOTOR CREDIT CORP COMM
PAPER
-- 0.000% 05/03/2016
24,951,350.00 24,951,312.50 0.00 24,939,833.33 12/03/1512/03/15P-1A-1+ 25,000,000.00 89233GE36 0.57
Account 68890170 Page 4
For the Month Ending December 31, 2015Managed Account Detail of Securities Held
PALM BEACH COUNTY SD SHORT TERM FUND - 68890170
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value
Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle
Par
Commercial Paper
JP MORGAN SECURITIES LLC COMM PAPER
-- 0.000% 05/16/2016
24,947,675.00 24,933,889.00 0.00 24,919,791.67 12/03/1512/03/15P-1A-1 25,000,000.00 46640PEG4 0.70
BNP PARIBAS NY BRANCH COMM PAPER
-- 0.000% 06/06/2016
24,916,500.00 24,919,319.50 0.00 24,908,013.89 12/10/1512/09/15P-1A-1 25,000,000.00 09659BF62 0.74
0.00 124,762,450.00 124,758,521.00 0.59 124,702,909.72 125,000,000.00 Security Type Sub-Total
425,000,000.00 424,397,199.42 0.52 73,055.52 424,498,832.00 424,544,572.75 Managed Account Sub-Total
$425,000,000.00 $424,397,199.42 $73,055.52 $424,498,832.00 $424,544,572.75 0.52%
$424,617,628.27
$73,055.52
Total Investments
Accrued Interest
Securities Sub-Total
Account 68890170 Page 5
For the Month Ending December 31, 2015Managed Account Fair Market Value & Analytics
PALM BEACH COUNTY SD SHORT TERM FUND - 68890170
Value On Cost Amort Cost to WorstCUSIP Broker Date PriceDated Date/Coupon/Maturity Par at Mkt
Market Unreal G/L Unreal G/L DurationNext Call MarketSecurity Type/Description YTMEffective
Duration
U.S. Treasury Bond / Note
0.33 (2,925.00)(2,925.00) 24,997,075.00 99.99 JPMCHASE 25,000,000.00 912828C81US TREASURY NOTES
DTD 04/30/2014 0.375% 04/30/2016
0.41 0.33
0.33 9,004.50 11,728.12 49,994,150.00 99.99 CITIGRP 50,000,000.00 912828C81US TREASURY NOTES
DTD 04/30/2014 0.375% 04/30/2016
0.41 0.33
0.37 (3,909.00)(973.44) 24,982,425.00 99.93 JPMCHASE 25,000,000.00 912828VC1US TREASURY NOTES
DTD 05/15/2013 0.250% 05/15/2016
0.44 0.37
0.41 17,954.50 23,418.75 49,980,450.00 99.96 JPMCHASE 50,000,000.00 912828WM8US TREASURY NOTES
DTD 06/02/2014 0.375% 05/31/2016
0.47 0.41
0.50 14,438.50 17,596.87 49,988,300.00 99.98 CITIGRP 50,000,000.00 912828WQ9US TREASURY NOTES
DTD 06/30/2014 0.500% 06/30/2016
0.55 0.50
48,845.30 0.46 0.40 34,563.50 199,942,400.00 200,000,000.00 Security Type Sub-Total 0.40
Federal Agency Discount Note
0.13 (304.00) 5,435.67 24,990,394.00 99.96 CITIGRP 25,000,000.00 313384TE9FHLB DISC NOTE
-- 0.000% 02/17/2016
0.29 0.13
0.21 (2,833.75) 3,610.58 24,980,277.25 99.92 CITIGRP 25,000,000.00 313384UK3FEDERAL HOME LOAN BANKS DISC NOTE
-- 0.000% 03/17/2016
0.37 0.21
0.44 10,386.00 29,941.50 49,869,051.50 99.74 CITIGRP 50,000,000.00 313384XW4FHLB DISC NOTE
-- 0.000% 06/08/2016
0.59 0.44
38,987.75 0.46 0.30 7,248.25 99,839,722.75 100,000,000.00 Security Type Sub-Total 0.30
Commercial Paper
0.17 (1,525.00) 8,141.67 24,977,475.00 99.91 CREDITAG 25,000,000.00 22533TC46CREDIT AGRICOLE CIB NY COMM PAPER
-- 0.000% 03/04/2016
0.51 0.17
0.22 (5,550.00) 3,512.50 24,969,450.00 99.88 BTM_DIR 25,000,000.00 06538BCM3BANK OF TOKYO MITSUBISHI COMM
PAPER
-- 0.000% 03/21/2016
0.54 0.22
0.34 37.50 11,516.67 24,951,350.00 99.81 TOYOTA 25,000,000.00 89233GE36TOYOTA MOTOR CREDIT CORP COMM
PAPER
-- 0.000% 05/03/2016
0.57 0.34
0.37 13,786.00 27,883.33 24,947,675.00 99.79 JPMCHASE 25,000,000.00 46640PEG4JP MORGAN SECURITIES LLC COMM PAPER
-- 0.000% 05/16/2016
0.55 0.37
Account 68890170 Page 6
For the Month Ending December 31, 2015Managed Account Fair Market Value & Analytics
PALM BEACH COUNTY SD SHORT TERM FUND - 68890170
Value On Cost Amort Cost to WorstCUSIP Broker Date PriceDated Date/Coupon/Maturity Par at Mkt
Market Unreal G/L Unreal G/L DurationNext Call MarketSecurity Type/Description YTMEffective
Duration
Commercial Paper
0.43 (2,819.50) 8,486.11 24,916,500.00 99.67 BNP PARI 25,000,000.00 09659BF62BNP PARIBAS NY BRANCH COMM PAPER
-- 0.000% 06/06/2016
0.76 0.43
59,540.28 0.59 0.31 3,929.00 124,762,450.00 125,000,000.00 Security Type Sub-Total 0.31
425,000,000.00 424,544,572.75 147,373.33 45,740.75 0.35 0.50 Managed Account Sub-Total 0.35
Total Investments $424,617,628.27
$73,055.52
$424,544,572.75
Accrued Interest
Securities Sub-Total $425,000,000.00 $147,373.33 $45,740.75 0.35 0.50% 0.35
Account 68890170 Page 7
For the Month Ending December 31, 2015Managed Account Security Transactions & Interest
PALM BEACH COUNTY SD SHORT TERM FUND - 68890170
Transaction Type
Trade CUSIPSecurity DescriptionSettle Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
BUY
12/03/15 CREDIT AGRICOLE CIB NY COMM
PAPER
-- 0.000% 03/04/2016
22533TC46 (24,969,333.33) 0.00 (24,969,333.33) 25,000,000.00 12/03/15
12/03/15 FHLB DISC NOTE
-- 0.000% 02/17/2016
313384TE9 (24,984,958.33) 0.00 (24,984,958.33) 25,000,000.00 12/03/15
12/03/15 FEDERAL HOME LOAN BANKS DISC
NOTE
-- 0.000% 03/17/2016
313384UK3 (24,976,666.67) 0.00 (24,976,666.67) 25,000,000.00 12/03/15
12/03/15 BANK OF TOKYO MITSUBISHI COMM
PAPER
-- 0.000% 03/21/2016
06538BCM3 (24,965,937.50) 0.00 (24,965,937.50) 25,000,000.00 12/03/15
12/03/15 JP MORGAN SECURITIES LLC COMM
PAPER
-- 0.000% 05/16/2016
46640PEG4 (24,919,791.67) 0.00 (24,919,791.67) 25,000,000.00 12/03/15
12/03/15 TOYOTA MOTOR CREDIT CORP COMM
PAPER
-- 0.000% 05/03/2016
89233GE36 (24,939,833.33) 0.00 (24,939,833.33) 25,000,000.00 12/03/15
12/03/15 US TREASURY NOTES
DTD 04/30/2014 0.375% 04/30/2016
912828C81 (25,000,000.00) (8,499.31) (25,008,499.31) 25,000,000.00 12/03/15
12/03/15 US TREASURY NOTES
DTD 05/15/2013 0.250% 05/15/2016
912828VC1 (24,983,398.44) (3,090.66) (24,986,489.10) 25,000,000.00 12/03/15
12/10/15 US TREASURY NOTES
DTD 06/02/2014 0.375% 05/31/2016
912828WM8 (49,957,031.25) (5,122.95) (49,962,154.20) 50,000,000.00 12/09/15
12/10/15 US TREASURY NOTES
DTD 04/30/2014 0.375% 04/30/2016
912828C81 (49,982,421.88) (20,604.40) (50,003,026.28) 50,000,000.00 12/09/15
12/10/15 US TREASURY NOTES
DTD 06/30/2014 0.500% 06/30/2016
912828WQ9 (49,970,703.13) (110,733.70) (50,081,436.83) 50,000,000.00 12/09/15
12/10/15 BNP PARIBAS NY BRANCH COMM PAPER
-- 0.000% 06/06/2016
09659BF62 (24,908,013.89) 0.00 (24,908,013.89) 25,000,000.00 12/09/15
12/10/15 FHLB DISC NOTE
-- 0.000% 06/08/2016
313384XW4 (49,839,110.00) 0.00 (49,839,110.00) 50,000,000.00 12/09/15
(148,051.02) (424,545,250.44)(424,397,199.42) 425,000,000.00 Transaction Type Sub-Total
INTEREST
Account 68890170 Page 8
For the Month Ending December 31, 2015Managed Account Security Transactions & Interest
PALM BEACH COUNTY SD SHORT TERM FUND - 68890170
Transaction Type
Trade CUSIPSecurity DescriptionSettle Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
INTEREST
12/01/15 MONEY MARKET FUND MONEY0002 0.00 5.80 5.80 0.00 12/01/15
12/31/15 US TREASURY NOTES
DTD 06/30/2014 0.500% 06/30/2016
912828WQ9 0.00 125,000.00 125,000.00 50,000,000.00 12/31/15
125,005.80 125,005.80 0.00 50,000,000.00 Transaction Type Sub-Total
(424,397,199.42) (23,045.22) (424,420,244.64)Managed Account Sub-Total
Total Security Transactions ($424,420,244.64)($23,045.22)($424,397,199.42)
Account 68890170 Page 9
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