Investments

The Board of the Early Retirement Program includes the same members as the District School Board of Pasco County which established and has the authority to amend the investment policy for the plan. An Investment Oversight Committee monitors the investment performance and reports to the Board. On January 20, 2015, the Board approved an updated investment policy that allows the plan to invest in equities and fixed income securities.

The following was the Board adopted asset allocation as of June 30, 2021:

Asset Allocation

Asset Class Range Target

Domestic Equity	19% - 59%	39%
International Equity	3% - 43%	21%
Other / Alternatives	0% - 15%	0%
Domestic Fixed Income	20% - 60%	40%
Cash Equivalent	0% -20%	0%

The Plan’s cash and investments at June 30, 2021, consisted of the following:

Fair Value Measurements Using

			Quoted Prices in Active	Significant Other	Significant
Maturity	Balance	Percentage	Markets for Idential Assets	Observable Inputs	Unobservable Inputs
Investments by Fair Value Level Range	June 30, 2021	of Plan Net Assets	(Level 1)	(Level 2)	(Level 3)
Collateralized Mortgage Obligations 11.99 Years - 14.82 Years	$ 171,259	1.00%	-	120,007	51,252
Corporate Bonds 1.83 Years - 4.04 Years	80,558	0.47%	-	80,558	-
Government Sponsored Enterprises 0.38 years - 12.15 Years	42,342	0.25%	-	42,342	-
Government and Municipal Bonds 2.17 Years - 37.00 Years	422,569	2.47%	100,977	321,592	-
Total Investments by Fair Value Level	716,728	4.19%	$ 100,977	$ 564,499	$ 51,252
Investments Measured at Net Asset Value (NAV)
Domestic Equity Mutual Funds	5,443,748	31.83%
International Equity Mutual Funds	2,706,983	15.83%
Domestic Fixed Income Mutual Funds	4,201,670	24.57%
Total Investments Measured at NAV	12,352,401	72.22%
Investments Measured at Amortized Cost
Money Market Funds	2,467,170	14.42%
Total Investments Measured at Amortized Cost	2,467,170	14.42%
Total Investments	$ 15,536,299	90.83%
Cash and Cash Equivalents	1,558,510	9.11%
Accrued Interest Receivable	9,261	0.05%
Total Plan Assets	$ 17,104,070	100.00%

Credit Risk

 The District’s investment policy authorizes the District to participate in the SBA Florida PRIME. The policy also authorizes the District to invest in interest-bearing time deposits

or savings accounts, direct obligations of the United States Treasury, money market funds with the Securities and Exchange Commission, and United States government funds registered under the Investment Act of 1940. The policy further provides that the securities shall only be purchased from financial institutions which are qualified as public depositories by the Treasurer of the State of Florida, Florida-based regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1, or from primary security dealers as designated by the Federal Reserve of New York.

 The Plan’s investments in Collateralized Mortgage Obligations had ratings of NR to AAA by Standard and Poor’s or WR to A3 by Moody’s.

 The Plan’s investments in Corporate Bonds had ratings of BBB+ by Standard and Poor’s or of Baa1 by Moody’s.

 The Plan’s investments in Government Sponsored Enterprises had a rating of Aaa by Moody’s.

 The Plan’s investments in Government and Municipal Bonds had ratings of A+ to AAA by Standard and Poor’s or of A2 to A1 by Moody’s.

Concentration of Credit Risk

 The District’s investment policy has established permitted investment sectors which are designed to reduce concentration of credit risk of the District’s investment portfolio.

 Less than five (5) percent of the Early Retirement Plan’s investments are in Government Sponsored Enterprise Securities.

Rate of Return

 For the year ending June 30, 2021, the annual money-weighted rate of return on the pension plan investments, net of pension plan investment expense, was 14.02 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

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