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Fairfax County Public Schools | First Quarter 2020

Presentation Materials

Contact Information

Gregory J. Fox, CFAAssociate PartnerAon Investments USA Inc.201 Merritt 7, STE 2Norwalk, CT 06850t +1 (203) 523-8780f +1 (847) [email protected]

Maggie UhleinConsultantAon Investments USA Inc.201 Merritt 7, STE 2Norwalk, CT 06850t +1 (203) 523-6762f +1 (203) [email protected]

Connor KeenanSenior Investment AnalystAon Investments USA Inc.201 Merritt 7, STE 2Norwalk, CT 06850t +1 (203) 523-6195f +1 (203) [email protected]

mailto:[email protected]



Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Investments USA Inc.

Global Equity Markets

-22.4%-24.1%

-21.1%

-30.0%

-17.4%

-28.9%

-20.9%-23.3%

-28.4%

-24.4%

-12.7%

-16.3%

-9.7%

-23.3%

-7.5%

-21.0%

-13.8% -13.3%

-24.5%

-18.9%

-40%

-30%

-20%

-10%

0%

ACWI IMI 44.2%ACWI ex-U.S.

IMI

55.8%USA IMI

4.5%UK IMI

8.1%Japan IMI

2.8%Canada IMI

0.2%Israel IMI

13.5%Europe ex-UK

IMI

3.3%Pacific ex-Japan

IMI

11.8%Emerging

Markets IMI

GLOBAL MSCI IMI INDEX RETURNS (USD)AS OF 03/31/2020

First Quarter 2020 One-Year

Source: MSCI

A decade-long bull market came to an abrupt halt as the Covid-19 outbreak in China turned into a global pandemic. After reaching all-time highs in mid-February, global equities sold off sharply as infection numbers grew and governments worldwide ramped up virus containment measures. With much of the economy shuttered, a deep global recession appears to be inevitable despite unprecedented fiscal and monetary stimulus measures. In local currency terms, the MSCI AC World Investable Market Index fell by 21.0%. Appreciation of the U.S. dollar further dragged down the returns to -22.4% in USD terms in Q1 2020.

UK equities were the worst performers (-30.0%) over the quarter where its sizeable resource sector (Oil & Gas and Basic Materials) underperformed due to sharp drop in crude oil prices amidst the coronavirus outbreak. Brexit negotiations ran into difficulties as the UK and the European Union (EU) clashed on “level playing field” requirements. The UK Prime Minister Boris Johnson stated that Britain would be prepared to leave the EU on the World Trade Organization’s (WTO) terms if progress is not made by June 2020.

Page 1


Global Equity Markets

USA55.8%

UK4.5%

Canada2.8%

Pacif ic ex-Japan3.3% Japan

8.1%

Europe ex-UK13.5%

Israel0.2%

Latin America

1.0%

Asia9.3%

Eastern Europe, Middle East & Africa1.5%

Emerging Markets11.8%

MSCI ALL COUNTRY WORLD IMI INDEX GEOGRAPHIC ALLOCATION AS OF 03/31/2020

Source: MSCI

UK10.2%

Canada6.3%

Pacif ic ex-Japan7.5%

Japan18.3%

Europe ex-UK30.6%

Israel0.5%

Latin America2.2%

Asia21.0%

Eastern Europe, Middle East & Africa3.5%

Emerging Markets26.7%

MSCI ALL COUNTRY WORLD EX-U.S. IMI INDEX GEOGRAPHIC ALLOCATION AS OF 03/31/2020

Source: MSCI

The two exhibits on this slide illustrate the percentage that each country/region represents of the global and international equity markets as measured by the MSCI All Country World IMI Index and the MSCI All Country World ex-U.S. IMI Index, respectively.

Page 2


U.S. Equity Markets

-20.9%

-12.1% -12.9%

-20.5%

-15.1%

-51.6%

-28.3% -27.8% -28.6%

-15.1%-9.1%

8.0%

-2.1%

-10.6%

-4.2%

-54.5%

-19.2% -19.7%-15.6%

-3.2%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

Russell3000

25.1%Te chnology

15.1%Healthcare

14.5%Cons. Disc

6.2%Cons.

Staples

2.5%Energ y

3.0%Materials &Processing

9.1%Produ cerDurables

18.9%FinancialServices

5.5%Utilities

RUSSELL SECTOR RETURNS AS OF 03/31/2020

First Quarter 2020

One-Year

Source: Russell Indexes

-20.9%-24.2%

-12.5%

-31.7%

-20.0%

-35.7%

-25.8%

-9.1%

-13.6%

3.7%

-24.1%

-9.4%

-29.6%

-18.6%

-40.0%

-35.0%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

Russell3000

28.8%LargeValue

42.1%Large

Growth

13.1%MediumValue

10.2%MediumGrowth

2.6%SmallValue

3.2%Small

Growth

RUSSELL STYLE RETURNS AS OF 03/31/2020

First Quarter 2020

One-Year

Source: Russell Indexes

Three major U.S. equity indices (S&P 500, Dow Jones Industrial Average and Nasdaq Composite) entered bear market territory as the indices fell more than 20% below their mid-February peaks in the fastest bear market on record ending the 11-year bull market, the longest on record. Returns were on pace to be much worse before stock markets rallied to end the quarter. Large fiscal stimulus packages were credited as the major reason for improving risk sentiment. For the quarter, the Dow Jones US Total Stock Market Index returned -21.0%. The Russell 3000 Index fell 20.9% during the first quarter and 9.1% over the one-year period.

The CBOE Volatility Index (VIX), Wall Street’s “fear gauge”, set a new record peak of 82.7 in mid-March before ending the quarter slightly lower at 53.5 after having averaged 19.0 over the previous 12 months.

All sectors generated negative returns over the quarter. In particular, Energy (-51.6%) and Financial Services (-28.6%) were the worst performing sectors in Q1 2020.

Performance was negative across the market capitalization spectrum over the quarter. Small cap stocks underperformed both large and medium cap stocks over the quarter. Value stocks underperformed their Growth counterparts in Q1 2020 and over the last year.

Page 3


U.S. Fixed Income Markets

3.1%

8.1%

-3.6%

2.8%

-0.2%

1.2%

8.9%

13.1%

5.0%

7.0%

2.8%

6.1%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Barclays Agg.Bond

44.2%Govt

25.2%Corp.

27.9%MBS

0.4%ABS

2.2%CMBS

BLOOMBERG BARCLAYS AGGREGATE RETURNS BY SECTOR AS OF 03/31/2020

First Quarter 2020 One-YearSource: FactSet

1.8%2.8% 2.7% 2.1%

6.2%4.6%

7.0% 7.4%8.8%

19.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

1-3 Yr. 3-5 Yr. 5-7 Yr. 7-10 Yr. >10 Yr.

BLOOMBERG BARCLAYS AGGREGATE RETURNS BY MATURITY AS OF 03/31/2020


5.8%

1.5%

-0.6%

-7.4%

-12.7%

10.5%

7.5% 7.4%

1.9%

-6.9%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

Aaa Aa A Baa High Yield

BLOOMBERG BARCLAYS AGGREGATE RETURNS BY QUALITY AND HIGH YIELD RETURNS AS OF 03/31/2020


The Bloomberg Barclays U.S. Aggregate Bond Index rose by 3.1% over the quarter, supported by Government bond’s return of 8.1%. The risk asset sell-off which tormented equity markets were also evident in the corporate bonds space, as concerns over corporate leverage that were disregarded in more benign times resurfaced. Corporate bonds underperformed with a return of -3.6%.

Performance was mixed across all credit grades. High yield bonds fell by 12.7%. Within investment grade bonds, Aaa bonds outperformed with a return of 5.8%.

Long-maturity bonds outperformed intermediate and short-maturity bonds over the quarter. Long-maturity bonds returned 6.2% while short-maturity bonds returned only 1.8% in Q1 2020.

Page 4


U.S. Fixed Income Markets

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Mar 10 Mar 12 Mar 14 Mar 16 Mar 18 Mar 20

U.S. 10-YEAR TREASURY AND TIPS YIELDS10Y TIPS Yield

10Y Treasury Yield

Source: U.S. Department of Treasury

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

0 5 10 15 20 25 30

Maturity (Years)

U.S. TREASURY YIELD CURVE

3/31/2019

12/31/2019

3/31/2020

Source: U.S. Department of Treasury

The U.S. nominal yield curve shifted downwards over the quarter as the combination of economic damage caused by the Pandemic and the response of easing monetary policy caused yields to fall across the curve.

The rate cuts, along with decreases in global output, caused 10-year US treasury yields to decrease by over 122 basis points to 0.70%, the first time in history it fell below 1.0%, and it remained there at the end of the quarter. The 30-year yield began the quarter at 2.39% and ended the quarter at 1.27%, a decline of 1.12%. The 30-year yield briefly closed below 1% on March 9, 2020, a sign of how stressed the outlook had become

The 10-year TIPS yield fell by 32bps over the quarter to -0.17%.

The US Federal Reserve (Fed) announced two emergency rate cuts over the quarter, lowering the Fed Funds Rate target by a total of 150bps to 0.00%-0.25%. The Federal Reserve also launch unlimited QE, and an expansion of QE into other markets, such as corporate bonds and municipal bonds. In addition to this, Congress passed a $2.2tn stimulus package, the largest bailout in US history.

Page 5


European Fixed Income Markets

0%

5%

10%

15%

20%

25%

30%

2012 2013 2014 2015 2016 2017 2018 2019 2020

EUROZONE PERIPHERAL BOND SPREADS(10-YEAR SPREADS OVER GERMAN BUNDS)

Spain ItalyPortugal GreeceIreland

Source: FactSet

European government bond spreads over 10-year German bunds rose across the Euro Area with core yields falling and peripheral yields rising (except Ireland). The European Central Bank (ECB) expanded its asset purchase programme and removed a self-imposed limit to buy no more than a third of any country’s eligible bond, restoring some stability to the Euro Area’s government bond market.

German government bund yields fell in line with other developed market government bond yields, falling by 30bps to -0.49% over the quarter. Germany’s annual economic growth slowed to its lowest rate in six years at 0.6% whilst it posted zero growth in Q4, hit by falling household and government consumption while capital investment in machinery and equipment fell.

Italian government bond yields rose by 6bps to 1.48% over the quarter, retracting from a nine-month high of 2.3% after it spiked by 130bps mid-March and Spanish government bond yields rose by 18bps to 0.64%. Both the countries were the worst affected by novel coronavirus in Europe and were the first to impose quarantine measures.

Greek government bond yields rose by 18bps to 1.61% over the quarter which saw the country’s 10-year yield drop below 1% mid-Feb for the first time.

Page 6


Credit Spreads

Spread (bps) 03/31/2020 12/31/2019 03/31/2019 Quarterly Change (bps)One-Year Change

(bps)

U.S. Aggregate 95 39 44 56 51

Long Gov't 4 0 1 4 3

Long Credit 279 139 172 140 107

Long Gov't/Credit 151 79 99 72 52

MBS 60 39 35 21 25

CMBS 188 72 69 116 119

ABS 213 44 39 169 174

Corporate 272 93 119 179 153

High Yield 880 336 391 544 489

Global Emerging Markets 619 287 283 332 336

Source: FactSet, B loomberg Barclays

The rapid reassessment of the economic outlook took a dramatic toll on credit assets during the quarter. Credit spreads over U.S. Treasuries widened over the quarter.

Riskier areas of credit, such as US high yield bonds and emerging market debt, saw double digit losses due to a decrease in investors’ risk appetite. High Yield bond spreads widened significantly in Q1 2020, increasing by 544bps. This was followed by Global Emerging Markets bonds spreads, which widened by 332bps.

Page 7


Currency

80

90

100

110

120

130

140

Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20

U.S. DOLLAR RELATIVE TO EUR, GBP AND JPY REBASED TO 100 AT 03/31/2014

EUR/USD

GBP/USD

JPY/USD

Source: FactSet

Stronger Dollar

Weaker Dollar

80

85

90

95

100

105

110

115

120

125

Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20

TRADE WEIGHTED U.S. DOLLAR INDEX(1973 = 100)

Source: Federal Reserve

The U.S. dollar generally strengthened against major currencies over the quarter as it rose 7.1% on a trade-weighted basis. U.S. dollar appreciated against euro and sterling but marginally depreciated against Japanese yen.

Sterling fell sharply over the quarter amidst “risk-off” trade flows as the coronavirus outbreak escalated. The UK’s current account deficit and its status as a relatively small open economy means that sterling is particularly exposed to international fund flows. As investor concerns over economic growth and financial market stability grew, capital flows started to dry up from the UK as investors seek “safe haven” assets such as the US dollar. Sterling depreciated by 6.4% against the U.S. dollar.

Alongside a more dovish ECB and a weaker economic outlook, the euro fell against both the US dollar and the Japanese yen, depreciating by 2.2% and 2.9% respectively. However, it rose by 4.2% against sterling.

Page 8


Commodities

-23.3%

-11.5%

-51.1%

-18.5%

-1.1%

-9.9%

-16.8%

-7.2%

-28.1%

-22.3%

-8.3%

-52.9%

-22.7%

15.7%

-5.3%

-13.7%

-2.6%

-35.5%

-60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0%

Bloomberg Commodity Index

Ex-Energy

Energy

Industrial Metals

Prec. Metals

Agric.

Softs

Grains

Livestock

COMMODITY RETURNS AS OF 03/31/2020

First Quarter 2020

One-Year

Source: BloombergNote: Softs and Grains are part of the wider Agriculture sector

Amidst Covid-19 pandemic, commodities fell sharply over the quarter which saw the Bloomberg Commodity Index tumble by 23.3%.

Energy was the worst performing sector over the quarter with a return of -51.1% as crude oil prices fell sharply following Saudi Arabia’s plans to raise production and offer deep discounts to key markets in a bid to gain market share after Russia rejected a proposal by OPEC to cut oil production. The price of Brent crude oil fell by 65.5% to $23/bbl. and WTI crude oil spot prices fell by 66.5% to $20/bbl.

Livestock (-28.1%) was the second worst performing sector in Q1 2020.

Page 9


Hedge Fund Markets Overview

-3.4%

0.1%

-12.9%

-13.9%

-15.3%

-12.2%

-7.0%

-9.4%

-7.3%

1.4%

4.2%

-8.0%

-10.4%

-12.6%

-12.4%

-3.8%

-5.1%

-3.9%

-20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0%

Fixed Income/Convertible Arb.

Global Macro

Equity Hedge

Emerging Markets

Event-Driven

Distressed-Restructuring

Relative Value

Fund-Weighted Composite Index

Fund of Funds Composite Index

HEDGE FUND PERFORMANCE AS OF 03/31/2020

First Quarter 2020

One-Year

Note: Latest 5 months of HFR data are estimated by HFR and may change in the future.Source: HFR

Hedge fund performance was generally negative across all strategies in the first quarter.

Over the quarter, Global Macro was the only strategy to generate marginal positive return of 0.1%. Conversely, Event-Driven and Emerging Markets were the worst performers, falling 15.3% and 13.9% respectively.

HFRI Fund-Weighted Composite Index and the HFRI Fund of Funds Composite Index produced returns of -9.4% and -7.3% respectively.

Page 10

Fairfax County Public Schools – Summary

This report has been prepared by Aon Investments USA Inc. to provide Fairfax County Public Schools with an objective, thirdparty review of the historical investment results of the 457(b) Plan.

Asset AllocationThe Fairfax County Public Schools 457(b) Plan currently offers 7 investment options and a series of lifecycle funds. As of March 31, 2020, the Plan had 1 guaranteed interest fund, 1 fixed income fund, 1 inflation-sensitive solution, 2 passively-managed domestic equity funds, 1 actively-managed domestic equity funds, 1 actively-managed foreign equity fund and a series of actively managed target date funds. The two passively-managed domestic equity funds cover the following asset classes: large cap core and mid cap core. The two actively-managed domestic equity funds cover the following asset classes: large cap core and mid cap growth. Participants may allocate their investments among the funds in accordance with their own personal tolerance for risk. As of March 31, 2020, the assets of the Plan totaled $213.9 million. The Plan held 17.8% of assets in the guaranteed interest product, 8.8% in fixed income, 51.8% in domestic equity, 8.0% in foreign equity and 13.5% in target date funds. The Plan’s asset allocation by fund is detailed later in this report.

Plan PerformanceDuring the first quarter of 2020, A decade-long bull market came to an abrupt halt as the Covid-19 outbreak in China turned into aglobal pandemic. After reaching all-time highs in mid-February, global equities sold off sharply as infection numbers grew andgovernments worldwide ramped up virus containment measures. The Russell 3000 Index fell 20.9% during the first quarter and9.1% over the one-year period. The CBOE Volatility Index (VIX), Wall Street’s “fear gauge”, set a new record peak of 82.7 in mid-March before ending the quarter slightly lower at 53.5 after having averaged 19.0 over the previous 12 months. All sectorsgenerated negative returns over the quarter. In particular, Energy (-51.6%) and Financial Services (-28.6%) were the worstperforming sectors in Q1 2020. Performance was negative across the market capitalization spectrum over the quarter. Small capstocks underperformed both large and medium cap stocks over the quarter. Value stocks underperformed their Growthcounterparts in Q1 2020 and over the last year. With much of the economy shuttered, a deep global recession appears to beinevitable despite unprecedented fiscal and monetary stimulus measures. In local currency terms, the MSCI AC World InvestableMarket Index fell by 21.0%. Appreciation of the U.S. dollar further dragged down the returns to -22.4% in USD terms in Q1 2020.The domestic fixed income market, as represented by Bloomberg Barclays US Aggregate Bond Index, posted a slightly positivereturn for the quarter of 3.1%, supported by Government bond’s return of 8.1%. Long duration bonds outperformed shorterduration bonds during the quarter.

Page 11


Plan Performance (continued)Against this backdrop the plan’s options generated mostly negative returns while most of the actively managed target date fundsunderperformed their benchmarks.

Longer-term relative performance of most of the Plan’s active investments had positive results for the ten-year period ending March 31, 2020. Allowing for the expense ratios of the funds, both of the Plan’s index options successfully tracked their target Indices during the for longer periods, however they trailed slightly over the quarter.

Quarterly Fund Attribution

PIMCO Total Return Fund underperformed during the quarter- Positions in non-Agency MBS- TIPS held in lieu of nominal treasuries- Short duration exposure to select developed markets, particularly the U.K. and Japan

PIMCO Inflation Response Multi-Asset Fund underperformed during the quarter- Exposure to broad inflation assets, REITs and EM currencies detracted from absolute performance- Active commodity strategies- Positions in non-agency MBS, high yield corporate credit, and EM debt

Page 12


Quarterly Fund Attribution (continued)

Baron Growth Fund underperformed during the quarter- Specific holdings Vail Resorts, Arch Capital Group and Choice Hotels International, Inc.

Artisan International Fund outperformed during the quarter+ Relative outperformance was driven by holdings in industrial gases companies, exchange and insurance companies, and e-

commerce oriented businesses+ Currency impact was also favorable due to exposure to the US Dollar

Page 13

Market Value As of

1/1/2020Net

Transfers Contributions Distributions

Capital Apprec./ Deprec.

Market Value As of

3/31/2020U.S. FIXED INCOME 53,345,681.36 3,299,885.65 885,737.13 -1,447,951.74 526,643.33 56,609,995.73Great West Portfolio Fund 34,767,246.68 3,596,300.83 595,454.50 -1,310,295.31 174,338.55 37,823,045.25PIMCO Total Return Adm 18,265,327.93 -327,222.59 282,915.60 -137,481.19 389,553.13 18,473,092.88PIMCO Inflation Response MultiAsst Inst 313,106.75 30,807.41 7,367.03 -175.24 -37,248.35 313,857.60TARGET DATE 33,608,833.65 45,435.76 1,070,170.77 -146,226.67 -5,773,296.06 28,804,917.45T. Rowe Price Retirement I 2005 I 946,181.12 -323,052.48 26,498.15 -807.55 -105,840.97 542,978.27T. Rowe Price Retirement I 2010 I 70,723.41 -1,488.43 948.84 -800.24 -7,909.69 61,473.89T. Rowe Price Retirement I 2015 I 1,576,747.43 47,900.93 20,018.14 -5,353.26 -203,595.97 1,435,717.27T. Rowe Price Retirement I 2020 I 6,644,329.12 290,511.73 60,208.06 -9,949.70 -988,801.05 5,996,298.16T. Rowe Price Retirement I 2025 I 6,824,178.76 532,249.92 228,662.83 -25,685.77 -1,176,217.64 6,383,188.10T. Rowe Price Retirement I 2030 I 4,230,264.50 -98,019.21 149,857.73 -1,282.24 -733,830.53 3,546,990.25T. Rowe Price Retirement I 2035 I 5,775,192.30 -39,985.74 198,354.37 -242.56 -1,095,083.35 4,838,235.02T. Rowe Price Retirement I 2040 I 3,463,899.72 -245,969.73 156,662.55 -14,597.91 -656,206.81 2,703,787.82T. Rowe Price Retirement I 2045 I 1,744,019.26 -106,095.22 79,623.20 -81,948.80 -321,992.73 1,313,605.71T. Rowe Price Retirement I 2050 I 1,119,448.59 -23,545.63 36,619.69 -238.48 -226,774.01 905,510.16T. Rowe Price Retirement I 2055 I 1,213,849.44 12,929.62 112,717.21 -5,320.16 -257,043.31 1,077,132.80U.S. EQUITY 147,553,659.04 -2,924,494.54 2,121,066.23 -1,154,049.84 -34,739,213.06 110,856,967.83iShares S&P 500 Index 41,363,479.61 20,286,636.41 878,041.15 -338,118.49 -7,734,266.45 54,455,772.23Dodge & Cox Stock 30,441,902.24 -21,570,407.88 314,791.22 -155,632.86 -9,030,652.72 0.00Vanguard Mid Cap Index 39,624,137.27 -696,285.91 553,033.56 -419,501.69 -10,048,936.09 29,012,447.14Baron Growth Inst 36,124,139.92 -944,437.16 375,200.30 -240,796.80 -7,925,357.80 27,388,748.46INTERNATIONAL EQUITY 22,045,201.26 -420,826.87 279,551.79 -143,337.44 -4,633,432.24 17,127,156.47Artisan International Inv 22,045,201.26 -420,826.87 279,551.79 -143,337.44 -4,633,432.24 17,127,156.47OTHER 2,349,443.39 2,136,533.08Loan Fund 1,916,700.59 1,860,411.26Forfeiture Account 432,742.80 276,121.82

Total 457(b) Plan 258,902,818.70 4,356,525.92 -2,891,565.69 -44,619,298.03 215,535,570.56

Financial ReconciliationAs of March 31, 2020Fairfax County Public Schools

1Market Values may be slightly different as any corrections or adjustments after effective date are not included. 2Loan Fund and Forfeiture Account do not have cash flows available.

2

2

Page 14

December 31, 2019 : $259,335,491 March 31, 2020 : $215,811,154

SegmentsMarket Value

($)Allocation

(%)

Domestic Equity 147,553,659.04 56.90¢£

International Equity 22,045,201.26 8.50¢£

Domestic Fixed Income 18,265,327.93 7.04¢£

GIC 35,199,989.48 13.57¢£

Real Return 313,106.75 0.12¢£

Loan Fund 1,916,700.59 0.74¢£

Cash 432,742.80 0.17¢£

Life Cycle 33,608,763.10 12.96¢£

SegmentsMarket Value

($)Allocation

(%)

Domestic Equity 110,856,967.83 51.37¢£

International Equity 17,127,156.47 7.94¢£

Domestic Fixed Income 18,473,092.88 8.56¢£

GIC 38,098,629.05 17.65¢£

Real Return 313,857.60 0.15¢£

Loan Fund 1,860,411.26 0.86¢£

Cash 276,121.82 0.13¢£

Life Cycle 28,804,917.45 13.35¢£

Fairfax County Public Schools

457(b) Plan

Asset Allocation by Segment

Page 15

Domestic Equity International Equity Domestic Fixed Income GIC

Real Return Loan Fund Cash Life Cycle

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Allo

ca

tio

n (%

)

3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20


Historical Asset Allocation by Segment

April 1, 2010 To March 31, 2020

Total 457(b) Plan

Page 16

Allocation

MarketValue($000)

%

Performance(%)

1Quarter

1Year

3Years

5Years

7Years

10Years

Total 457(b) Plan 215,811.15 100.00

U.S. Fixed Income 56,885.58 26.36

Great West Portfolio Fund¹ 38,098.63 17.65 0.48 1.95 1.95 1.96 1.90 2.03

90 Day U.S. Treasury Bill 0.58 2.25 1.83 1.17 0.85 0.62

Stable Value Institutional Peer Group 0.52 2.22 1.99 1.78 1.68 1.85

PIMCO Total Return Adm 18,473.09 8.56 2.14 (27) 7.37 (30) 4.25 (37) 2.98 (50) 2.67 (75) 3.85 (48)

Blmbg. Barc. U.S. Aggregate 3.15 (15) 8.93 (13) 4.82 (6) 3.36 (11) 3.19 (16) 3.88 (45)

PIMCO Inflation Response MultiAsst Inst 313.86 0.15 -11.03 (20) -7.14 (39) 0.02 (52) 0.70 (63) -0.46 (90) -

PIMCO IRMA Benchmark -8.02 (12) -2.97 (16) 0.27 (50) 0.33 (68) -1.17 (93) 1.41 (100)

Target Date 28,804.92 13.35

T. Rowe Price Retirement I 2005 I 542.98 0.25 -10.30 (68) -3.53 (60) 2.18 (43) - - -

T. Rowe Price Retirement 2005* -10.36 (68) -3.20 (56) 2.21 (40) 2.86 (22) 3.81 (25) 5.03 (22)

T. Rowe Price Retirement 2005 Index -6.80 (26) 0.75 (12) 3.72 (5) 3.60 (3) 4.47 (4) 5.36 (13)



T. Rowe Price Retirement 2010 Index -8.10 (52) -0.20 (34) 3.66 (13) 3.68 (3) 4.77 (3) 5.76 (14)

T. Rowe Price Retirement I 2015 I 1,435.72 0.67 -12.45 (100) -4.58 (97) 2.41 (72) - - -







Asset Allocation & Performance

As of March 31, 2020

¹Market value is being sourced from Empower's Plan Service Center and may include corrections and adjustments made after effective date.*Alternate share class shown to illustrate performance history.

Page 17




Allocation

MarketValue($000)

%

Performance(%)

1Quarter

1Year

3Years

5Years

7Years

10Years




















T. Rowe Price Retirement 2055* -20.38 (34) -11.08 (36) 1.78 (29) 3.31 (22) 6.17 (9) 7.46 (-)

T. Rowe Price Retirement 2055 Index -19.33 (19) -8.96 (15) 2.73 (6) 4.03 (6) 6.46 (4) 7.66 (-)


Page 18




Allocation

MarketValue($000)

%

Performance(%)

1Quarter

1Year

3Years

5Years

7Years

10Years

U.S. Equity 110,856.97 51.37

iShares S&P 500 Index 54,455.77 25.23 -19.54 (13) -6.93 (7) 5.11 (7) 6.71 (13) 9.58 (13) 10.46 (15)

S&P 500 Index -19.60 (30) -6.98 (15) 5.10 (8) 6.73 (6) 9.62 (1) 10.53 (3)

Vanguard Mid Cap Index 29,012.45 13.44 -25.71 (51) -16.63 (48) -0.25 (47) 2.10 (46) 6.71 (42) 8.87 (41)

Vanguard Spliced Mid Cap Index -25.74 (51) -16.65 (48) -0.25 (47) 2.11 (46) 6.74 (42) 8.90 (41)

Baron Growth Inst 27,388.75 12.69 -22.30 (74) -10.28 (59) 7.02 (34) 5.67 (42) 8.46 (57) 10.71 (38)

Russell Midcap Growth Index -20.04 (58) -9.45 (51) 6.53 (41) 5.61 (42) 9.49 (37) 10.89 (29)

International Equity 17,127.16 7.94

Artisan International Inv 17,127.16 7.94 -21.26 (39) -7.78 (20) 2.92 (13) -0.20 (36) 2.72 (29) 4.92 (15)

MSCI EAFE Index (Net) -22.83 (56) -14.38 (57) -1.82 (53) -0.62 (49) 1.75 (44) 2.72 (41)

MSCI AC World ex USA Index (Net) -23.36 (61) -15.57 (66) -1.96 (53) -0.64 (49) 1.06 (61) 2.05 (67)


Page 19

2019 2018 2017 2016 2015 2014 2013 2012 2011 2010

U.S. Fixed Income

Great West Portfolio Fund¹ 1.95 1.95 1.95 1.98 2.00 1.86 1.53 2.11 2.55 2.67

90 Day U.S. Treasury Bill 2.28 1.87 0.86 0.25 0.03 0.04 0.05 0.08 0.08 0.13

Stable Value Institutional Peer Group 2.22 1.94 1.64 1.48 1.45 1.38 1.52 1.93 2.36 2.79

PIMCO Total Return Adm 7.99 (84) -0.51 (53) 4.87 (7) 2.34 (81) 0.47 (39) 4.43 (81) -2.16 (72) 10.10 (3) 3.91 (95) 8.57 (17)

Blmbg. Barc. U.S. Aggregate 8.72 (61) 0.01 (19) 3.54 (62) 2.65 (64) 0.55 (30) 5.97 (32) -2.02 (64) 4.21 (77) 7.84 (15) 6.54 (69)

IM U.S. Broad Market Core Fixed Income (MF) Median 9.00 -0.48 3.80 2.96 0.34 5.76 -1.64 6.06 6.98 7.24

PIMCO Inflation Response MultiAsst Inst 10.03 (85) -3.71 (24) 8.59 (75) 10.53 (20) -6.77 (78) 1.57 (73) -9.29 (100) 9.56 (64) - -

PIMCO IRMA Benchmark 10.30 (84) -3.86 (25) 5.08 (91) 6.76 (48) -7.47 (82) -0.34 (82) -8.89 (100) 6.58 (84) 4.56 (11) 12.98 (45)

IM Flexible Portfolio (MF) Median 16.62 -6.73 12.75 6.53 -3.27 3.80 12.10 11.05 -1.69 12.37

Target Date

T. Rowe Price Retirement I 2005 I 14.69 (28) -3.12 (44) 10.74 (19) 6.69 (30) - - - - - -

T. Rowe Price Retirement 2005* 15.08 (21) -3.26 (50) 10.67 (20) 6.72 (30) -0.75 (39) 4.72 (40) 9.74 (24) 11.35 (16) 1.43 (66) 11.51 (18)

T. Rowe Price Retirement 2005 Index 14.88 (25) -2.58 (26) 10.12 (26) 5.84 (45) -0.10 (20) 5.48 (25) 9.86 (23) 9.52 (41) 2.38 (44) 10.22 (42)

IM Mixed-Asset Target Alloc Consv (MF) Median 13.18 -3.28 8.83 5.58 -1.13 4.21 7.55 9.04 2.10 9.94


T. Rowe Price Retirement 2010* 16.16 (1) -3.61 (67) 11.66 (13) 7.11 (11) -0.76 (63) 4.99 (23) 11.93 (8) 12.44 (6) 0.54 (55) 12.70 (4)


IM Mixed-Asset Target 2010 (MF) Median 14.53 -3.44 10.39 6.22 -0.63 4.49 9.24 9.64 0.90 10.88


T. Rowe Price Retirement 2015* 17.40 (1) -4.17 (64) 13.34 (12) 7.31 (14) -0.58 (36) 5.37 (32) 15.18 (2) 13.81 (1) -0.32 (81) 13.79 (4)









T. Rowe Price Retirement 2025 Index 21.36 (1) -5.00 (42) 16.68 (11) 8.21 (9) -0.56 (34) 7.06 (9) 20.01 (4) 14.00 (22) -0.22 (25) 14.12 (26)

IM Mixed-Asset Target 2025 (MF) Median 18.63 -5.27 15.23 7.19 -0.95 5.52 16.08 13.27 -1.05 13.67






T. Rowe Price Retirement 2035* 23.70 (14) -6.87 (45) 20.88 (9) 7.64 (66) 0.13 (4) 6.07 (38) 24.86 (3) 17.35 (1) -3.26 (61) 16.34 (1)








Calendar Year Performance


¹Market Value is sourced from Empower's Plan Service Center and may include corrections and adjustments made after the effective date.Returns for periods greater than one year are annualized.Returns are expressed as percentages.*Alternate share class shown to illustrate performance history.

Page 20


Calendar Year Performance


2019 2018 2017 2016 2015 2014 2013 2012 2011 2010










T. Rowe Price Retirement 2055* 25.38 (37) -7.62 (23) 22.33 (20) 7.73 (73) 0.18 (4) 6.18 (40) 25.86 (13) 17.60 (1) -3.35 (16) 16.41 (-)

T. Rowe Price Retirement 2055 Index 26.33 (24) -6.96 (5) 21.02 (65) 9.70 (14) -0.98 (45) 7.43 (11) 24.73 (31) 15.66 (60) -1.46 (1) 15.17 (-)

IM Mixed-Asset Target 2055 (MF) Median 25.06 -8.28 21.51 8.53 -1.26 5.70 23.17 15.73 -4.33 -

U.S. Equity

iShares S&P 500 Index 31.43 (25) -4.38 (7) 21.77 (19) 11.92 (19) 1.35 (19) 13.61 (14) 32.21 (28) 15.84 (33) 1.98 (41) 14.92 (36)

S&P 500 Index 31.49 (3) -4.38 (7) 21.83 (3) 11.96 (8) 1.38 (7) 13.69 (1) 32.39 (3) 16.00 (3) 2.11 (8) 15.06 (1)

IM S&P 500 Index (MF) Median 31.29 -4.55 21.64 11.79 1.23 13.47 32.11 15.77 1.96 14.82

Vanguard Mid Cap Index 31.04 (40) -9.24 (51) 19.29 (50) 11.23 (55) -1.33 (40) 13.78 (10) 35.17 (52) 16.01 (43) -1.96 (42) 25.67 (31)

Vanguard Spliced Mid Cap Index 31.09 (39) -9.22 (51) 19.30 (50) 11.25 (55) -1.28 (40) 13.83 (9) 35.21 (52) 16.04 (42) -1.91 (40) 25.69 (31)

IM U.S. Mid Cap Equity (MF) Median 30.12 -9.13 19.21 12.04 -2.41 8.29 35.28 15.33 -2.95 23.79

Baron Growth Inst 40.50 (9) -2.67 (30) 27.35 (32) 6.31 (45) -4.06 (80) 4.66 (78) 38.69 (24) 16.74 (17) 1.51 (13) 24.32 (54)

Russell Midcap Growth Index 35.47 (36) -4.75 (52) 25.27 (45) 7.33 (34) -0.20 (52) 11.90 (12) 35.74 (48) 15.81 (31) -1.65 (34) 26.38 (38)

IM U.S. Mid Cap Growth Equity (MF) Median 34.46 -4.45 24.89 5.71 0.05 7.37 35.60 14.19 -2.92 24.42

International Equity

Artisan International Inv 29.20 (15) -10.86 (15) 31.02 (17) -9.66 (100) -3.85 (82) -0.97 (11) 25.18 (7) 25.39 (4) -7.26 (18) 5.91 (67)

MSCI EAFE Index (Net) 22.01 (69) -13.79 (39) 25.03 (57) 1.00 (46) -0.81 (49) -4.90 (42) 22.78 (14) 17.32 (69) -12.14 (50) 7.75 (53)

MSCI AC World ex USA Index (Net) 21.51 (72) -14.20 (42) 27.19 (40) 4.50 (14) -5.66 (87) -3.87 (28) 15.29 (81) 16.83 (71) -13.71 (77) 11.15 (23)

IM International Large Cap Equity (MF) Median 25.20 -14.90 26.08 0.55 -1.01 -5.22 20.56 19.25 -12.24 8.04

¹Market Value is sourced from Empower's Plan Service Center and may include corrections and adjustments made after the effective date.Returns for periods greater than one year are annualized.Returns are expressed as percentages.*Alternate share class shown to illustrate performance history.

Page 21

Great West Portfolio Fund PIMCO Total Return Adm PIMCO Inflation Response MultiAsst Inst

T. Rowe Price Ret 2005* T. Rowe Price Ret 2010* T. Rowe Price Ret 2015*



T. Rowe Price Ret 2055* iShares S&P 500 Index Vanguard Mid Cap Index

Baron Growth Inst Artisan International Inv

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

An

nu

aliz

ed

Re

turn

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0Annualized Standard Deviation


Risk Profile

3 Years Ending March 31, 2020

*Alternate share class shown to illustrate performance history.

Page 22

Fairfax County Public Schools – Watch List Review

Process

U.S FIXED INCOME

Great West Portfolio Fund No No No No No N/R Green Green Green Green

PIMCO Total Return Adm No No No Yes No Buy Green Green Green Green

PIMCO Inflation Response MultiAsst Inst No No No No Yes Buy Green Green Green Green

TARGET DATE

T. Rowe Price Retirement Series No No No No No Buy Green Green Green Green

U.S. EQUITY

iShares S&P 500 Index No No No No No Buy Green Green Green Green

Vanguard Mid Cap Index No No No No No Buy Green Green Green Green

Baron Growth Instl No No No No No Qualified Green Green Green Green

INTERNATIONAL EQUITY

Artisan International Inv No No No No No Buy Green Green Green Green

StatusGreenYellowRed

Changes in Watch List designations from the previous quarter are highlighted in bold.Passively managed index funds are expected to track their benchmark within a reasonable margin.

Suggested ActionNumber of Criteria Met

3rd Quarter

2019

1st Quarter

2020

Watch List StatusPerformance

4th Quarter

2019

Overall Manager Research

Rating

4 or more affirmatives or “Yellow” for 4 consecutive quarters

1 or less affirmatives

Full fund review and recommendation for action will be made

Organization/Staff

2 to 3 affirmatives

Underperformed / Adverse Tracking in

3 of 4 Trailing Calendar Quarters

Significant Organizational

Change

Adverse Change in Portfolio

Manager

Active – On “closely monitored list”Active – No action required

2nd Quarter

2019

Diverged from Strategy and/or

Portfolio Characteristics

Underperformed / Adverse Tracking During Trailing 5-

Years

Page 23

Watch List Guidelines

Aon Investments USA Inc. Investment Option Review Criteria1. If the Fund has underperformed its benchmark over the most recent trailing five-year period

– If passively managed, the fund’s return must be no more than 0.5 percentage points above or below the return of the benchmark

2. If the fund has underperformed its benchmark in three of the most recent four calendar quarters3. If the Fund diverged from its strategy and / or portfolio characteristics4. Adverse change in portfolio manager5. Merger with another fund6. Significant organizational change

Suggested Action Triggers1. When an investment fund is placed on the Red Watch List, a formal fund retention meeting may be

conducted. At this meeting, the fund’s representative would be asked to address all relevant issues and explain why the fund should be retained. After this retention meeting, the Investment Committee may elect to either terminate the fund or grant it a one-year extension.

2. If a fund is granted the one-year extension described above and remains on the Watch List for this period, the fund may be terminated unless the Committee determines that an alternate course of action is appropriate.

Special Circumstances1. In the event of a major change to the fund (e.g., investments, ownership, and staffing), the Committee retains

the right to immediately terminate any fund without invoking the Watch List criteria in any fashion.

Page 24

Fairfax County Public Schools 457(b) Plan As of March 31, 2020

Investment Option Participants Investment Options Participants

Great West Portfolio 948 One 697

PIMCO Total Return 976 Two 403

PIMCO Inflation Response MultiAsst 54 Three 291

T. Rowe Price Retirement I 2005 I 34 Four 320

T. Rowe Price Retirement I 2010 I 19 Five 268

T. Rowe Price Retirement I 2015 I 42 Six 275

T. Rowe Price Retirement I 2020 I 94 Seven 238

T. Rowe Price Retirement I 2025 I 141 Eight 17

T. Rowe Price Retirement I 2030 I 126 More than Eight 28

T. Rowe Price Retirement I 2035 I 159



T. Rowe Price Retirement I 2050 I 68 Item Result

T. Rowe Price Retirement I 2055 I 88 Participation Rate 53.84%

iShares S&P 500 Index 1,394 Number of Participants with Account Balances 2,333

Vanguard Mid Cap Index 1,100 Average Deferral Rate 16.80%

Baron Growth 973 Average Number of Funds per Participant 3.16

Artisan International 937 Average Account Balance $91,469.57

Investment Option Participants

Great-West Portfolio Fund 96

PIMCO Total Return Admin 92

PIMCO Inflation Response MultiAsst 9












iShares S&P 500 Index 128

Vanguard Mid Cap Index Ins 106

Baron Growth Instl 82

Artisan International Inv 87

* Information directly provided by Empower Retirement.

Demographic Information

Participants per Investment Option

Participants with Balance in One Investment Option

Investment Options per Participant

Other Demographics

Page 25

457(b) Plan Statistics

457(b) 403(b)Contributions Mar. 2018 $ 1,423,000 $ 4.1 millionContributions Mar. 2019 $ 1,237,000 $ 4.3 millionContributions Mar. 2020 $ 1,338,000 $ 4.6 million

Assets Mar. 31, 2018 $216.6 millionAssets Mar. 31, 2019 $227.1 millionAssets Mar. 31, 2020 $213.7 million

Number of Participants Mar. 2018 2274 13,133Number of Participants Mar. 2019 2313 13,215Number of Participants Mar. 2020 2340 13,622

Average Contribution/Month – Mar. 2018 $1081/mo; $306/biweekAverage Contribution/Month – Mar. 2019 $ 996/mo; $270/biweekAverage Contribution/Month – Mar. 2020 $ 956/mo; $195/biweek

403(b)

Average Contribution/Month – Mar. 2020 $ 798/mo; $206/biweek

Number of Employees Currently Contributing to 457(b): 1236/mo; 64/biweekNumber of Employees Currently Contributing to 403(b): 5491/mo; 693/biweek

Number of Employees Currently Contributing to both 457 & 403(b): 438 total

Page 26

457 Plan Participants

Age Monthly Bi-Weekly<21 0 121-25 9 026-30 50 031-35 82 236-40 144 541-45 147 246-50 223 1351-55 193 1756-60 210 1161-65 137 1266-70 34 171-75 6 076-80 1 0

Total 1236 64

0

50

100

150

200

250

<21 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75 76-80

Enro

llmen

t

Age Range

457 Monthly Plan Participants

02468

1012141618

<21 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75 76-80

Enro

llmen

t

Age Range

457 Bi-Weekly Plan Participants

Page 27

403(b) Plan Participants

Age Monthly Bi-Weekly<21 0 121-25 50 626-30 326 531-35 607 2336-40 716 3941-45 781 7046-50 907 8651-55 808 12856-60 676 16261-65 466 9866-70 121 4371-75 27 1676-80 6 1181-85 0 586-90 0 0

Total 5491 693

0100200300400500600700800900

1000

<21 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75 76-80 81-85En

rollm

ent

Age Range

403(b) Monthly Plan Participants

020406080

100120140160180

<21 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75 76-80 81-85 86-90

Enro

llmen

t

Age Range

403(b) Bi-Weekly Plan Participants

Page 28

Fairfax County Public Schools 457(b) Plan

Contribution Analysis

Stable Value13%

Fixed Income7%

Real Return0%

Large Cap Blend (Passive)

20%

Large Cap Blend (Active)

7%Mid Cap Blend (Passive)13%

Small Cap Growth9%

International6%

Lifecycle25%

1st Quarter 2020 Contribution Allocation

Stable Value13% Fixed Income

5%Real Return

0%

Large Cap Blend (Passive)

20%

Large Cap Blend (Active)

7%

Mid Cap Blend (Passive)14%

Small Cap Growth8%

International6%

Lifecycle27%

4th Quarter 2019 Contribution Allocation

Page 29

Relative Ranking (3 Years Rolling) Relative Performance (04/01/10 to 03/31/20)

Relative Ranking vs. Peers (3 Years Rolling)

Style Map (Since Inception - 36 Months Rolling) Style History (Since Inception - 36 Months Rolling)

PIMCO Total Return Adm Blmbg. Barc. U.S. Aggregate

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 6/19 3/20 Cumulative Annualized Over/Under Relative Performance

Over/Under Performance

0.0

2.0

4.0

-2.0

-4.0

-6.0

Re

turn

(%)

4/10 4/11 4/12 4/13 4/14 4/15 4/16 4/17 4/18 4/19 3/20

Number ofObservations

>=Median Top Quartile Bottom Quartile >PIMCO Total Return Adm >Blmbg. Barc. U.S. Aggregate

PIMCO Total Return Adm 20 12 2 6 N/A 11

Blmbg. Barc. U.S. Aggregate 20 10 2 0 9 N/A

Style History Mar-2020 Average Style Exposure

Cap

ital

izat

ion

Manager Style

Barclays Capital Government Index

Barclays Capital U.S. Long Gov/CreditBarclays Capital 1-3yr Gov/Credit

Barclays Capital U.S. Credit Index

Barclays U.S. Credit Index Barclays 1-3yr Gov/Credit

Barclays Government Index Barclays U.S. Long Gov/Credit

0.0

25.0

50.0

75.0

100.0

11/97 8/99 5/01 2/03 11/04 8/06 5/08 2/10 11/11 8/13 5/15 2/17 3/20

PIMCO Total Return Adm 03/31/20

Page 30

Relative Ranking (3 Years Rolling)

Relative Performance (09/01/11 to 03/31/20)


PIMCO Inflation Response MultiAsst Inst PIMCO IRMA Benchmark

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 3/18 6/18 9/18 12/18 3/19 6/19 9/19 12/19 3/20


>=Median Top Quartile Bottom Quartile >PIMCO Inflation Response MultiAsst Inst >PIMCO IRMA Benchmark

PIMCO Inflation Response MultiAsst Inst 20 1 0 12 N/A 19

PIMCO IRMA Benchmark 20 1 0 19 1 N/A

Cumulative Annualized Over/Under Relative Performance Over/Under Performance

0.0

3.0

6.0

9.0

-3.0

-6.0

Re

turn

(%)

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20

PIMCO Inflation Response MultiAsst Inst 03/31/20

Page 31

Target Allocation: T. Rowe Price Retirement Funds

0%

20%

40%

60%

80%

100%

TargetBalanced

Target2005

Target2010

Target2015

Target2020

Target2025

Target2030

Target2035

Target2040

Target2045

Target2050

Target2055

Target2060

Fixed Income U.S. Equity Non-U.S. Equity Real Assets

Page 32

Target Allocation: T. Rowe Retirement Funds

Balanced 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060

Fixed Income 68.0% 64.0% 59.0% 52.5% 43.0% 34.0% 26.5% 19.5% 14.0% 10.0% 10.0% 10.0% 10.0%

US Aggregate Bond 12.6% 20.3% 18.9% 17.3% 15.3% 13.1% 10.8% 8.6% 6.3% 4.5% 4.5% 4.5% 4.5%

Dynamic Global Bond 4.8% 4.5% 4.2% 3.9% 3.4% 2.9% 2.4% 1.9% 1.4% 1.0% 1.0% 1.0% 1.0%

Intl Bond ($ Hedged) 7.2% 6.8% 6.3% 5.8% 5.1% 4.4% 3.6% 2.9% 2.1% 1.5% 1.5% 1.5% 1.5%

High Yield 4.3% 4.0% 3.6% 3.2% 2.7% 2.1% 1.6% 1.2% 0.7% 0.4% 0.4% 0.4% 0.4%

Floating Rate 1.1% 1.0% 0.9% 0.8% 0.7% 0.5% 0.4% 0.3% 0.2% 0.1% 0.1% 0.1% 0.1%

EM Bond 5.4% 5.0% 4.5% 4.0% 3.4% 2.7% 2.1% 1.5% 0.9% 0.5% 0.5% 0.5% 0.5%

US Treasury Long 3.6% 3.6% 3.6% 3.6% 3.5% 3.4% 3.1% 2.8% 2.5% 2.0% 2.0% 2.0% 2.0%

Focused 20.0% 19.0% 17.0% 14.0% 9.0% 5.0% 2.5% 0.5% 0.0% 0.0% 0.0% 0.0% 0.0%

U. S Equity 21.3% 23.9% 27.3% 31.6% 37.9% 43.9% 48.9% 53.5% 57.2% 59.9% 59.9% 59.9% 59.9%

US Large Cap 16.4% 18.4% 21.0% 24.3% 29.2% 33.8% 37.6% 41.2% 44.0% 46.1% 46.1% 46.1% 46.1%

US Mid Cap 2.6% 2.9% 3.3% 3.8% 4.5% 5.3% 5.9% 6.4% 6.9% 7.2% 7.2% 7.2% 7.2%

US Small Cap 2.3% 2.6% 3.0% 3.5% 4.2% 4.8% 5.4% 5.9% 6.3% 6.6% 6.6% 6.6% 6.6%

Non-U.S Equity 9.1% 10.3% 11.7% 13.5% 16.2% 18.8% 21.0% 22.9% 24.5% 25.7% 25.7% 25.7% 25.7%

Developed Intl Mkts 7.8% 8.7% 9.9% 11.5% 13.8% 16.0% 17.8% 19.5% 20.8% 21.8% 21.8% 21.8% 21.8%

Emerging Markets 1.4% 1.5% 1.8% 2.0% 2.4% 2.8% 3.1% 3.4% 3.7% 3.9% 3.9% 3.9% 3.9%

Real Assets 1.6% 1.8% 2.1% 2.4% 2.9% 3.3% 3.7% 4.0% 4.3% 4.5% 4.5% 4.5% 4.5%

Real Assets 1.6% 1.8% 2.1% 2.4% 2.9% 3.3% 3.7% 4.0% 4.3% 4.5% 4.5% 4.5% 4.5%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Page 33




TRP Retirement 2005 TRP Retirement 2005 Index

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

rce

nti

le R

an

k

6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 3/18 6/18 9/18 12/18 3/19 6/19 9/19 12/19 3/20


>=Median Top Quartile Bottom Quartile >TRP Retirement 2005 >TRP Retirement 2005 Index

TRP Retirement 2005 20 20 16 0 N/A 9

TRP Retirement 2005 Index 20 20 19 0 11 N/A


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TRP Retirement 2005 03/31/20

Alternate share class shown to illustrate performance history.

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iShares S&P 500 Index S&P 500 Index

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>=Median Top Quartile Bottom Quartile >iShares S&P 500 Index >S&P 500 Index

iShares S&P 500 Index 20 20 20 0 N/A 1

S&P 500 Index 20 20 20 0 19 N/A


Cap

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Manager Style

Large Cap Growth

Small Cap GrowthSmall Cap Value

Large Cap Value

Russell 1000 Growth Index Russell 1000 Value Index


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iShares S&P 500 Index 03/31/20

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Vanguard Mid Cap Index Vanguard Spliced Mid Cap Index

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Vanguard Spliced Mid Cap Index 20 15 7 0 19 N/A


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Large Cap Growth


Large Cap Value



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Vanguard Mid Cap Index 03/31/20

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Baron Growth Inst Russell Midcap Growth Index

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Russell Midcap Growth Index 20 20 2 0 12 N/A


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Baron Growth Inst 03/31/20


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Artisan International Inv

MSCI EAFE Index (Net)

MSCI AC World ex USA Index (Net)

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Cumulative Annualized Over/Under Relative Performance


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Artisan International Inv 20 9 5 7 N/A 9 10

MSCI EAFE Index (Net) 20 14 1 0 11 N/A 11

MSCI AC World ex USA Index (Net) 20 9 2 4 10 9 N/A


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MSCI USA GrowthMSCI USA Value

MSCI EAFE Value Index

MSCI EAFE Value Index MSCI EAFE Growth Index

MSCI USA Growth MSCI USA Value

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Artisan International Inv 03/31/20

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Fairfax County Public Schools As of March 31, 2020

Peer Group $ Weighted $ Weighted

Median Median Average Average Difference2

U.S FIXED INCOME

Great West Portfolio Fund Stable Value 0.89% 0.47% N/A 0.47% N/A N/A

PIMCO Total Return Adm U.S. Broad Market Core Fixed Income 0.71% 0.48% 0.42% 0.53% 0.35% 0.16%

PIMCO Inflation Response MultiAsst Inst Flexible Portfolio 0.69% 1.00% 1.00% 1.19% 0.97% 0.00%

TARGET DATE

T. Rowe Price Retirement I 2005 I Mixed-Asset Target Today (Active) 0.41% 0.55% 0.52% 0.56% 0.53% -0.15%

T. Rowe Price Retirement I 2010 I Mixed-Asset Target 2010 (Active) 0.40% 0.40% 0.54% 0.43% 0.48% -0.03%







T. Rowe Price Retirement I 2045 I Mixed-Asset Target 2045 (Active) 0.59% 0.57% 0.59% 0.59% 0.58% 0.00%



U.S. EQUITY

iShares S&P 500 Index S&P 500 Index (Passive) 0.03% 0.20% 0.04% 0.27% 0.04% -0.24%

Vanguard Mid Cap Index U.S. Mid Cap Core Equity (Passive) 0.04% 0.09% 0.05% 0.21% 0.05% -0.17%

Baron Growth Inst U.S. Mid Cap Growth Equity 1.03% 0.91% 0.71% 0.93% 0.76% 0.10%

INTERNATIONAL EQUITYArtisan International Inv International Equity All 1.18% 0.91% 0.63% 0.94% 0.66% 0.24%

2 Difference column represents the difference between the fund's expense ratio and the Peer Group's average expense ratio.

Fund NameFund's

Expense

Ratio

1 All information, unless noted otherwise, was created using Morningstar audited expense ratio data as of December 31, 2018. Since mutual fund expense ratios do not

change frequently, Aon Investments believes this study to be a relevant comparison for up to a year, at which time the data will be updated. For complete information on Aon

Investments methodologies and additional information on the expense ratio distributions, contact your Aon Investments consultant. Mutual fund expense peer groups were

constructed by Investment Metrics, and are consistent with the peer groups shown in other exhibits comparing performance, risk-metrics and a multitude of other

characteristics.

3 In lieu of an expense ratio, Great West assumes a margin of 89 basis points on the Portfolio Fund. This reflects the gross investment yield of the assets minus the crediting

rate and cost of maintaining regulatory capital requirements.

6 Combines multiple Investment Metrics peer groups.

5 Mixed Asset peer groups utilize prospectus net expense ratio information due to the nature of the asset class

and common use of a Fund of Fund structure.

4 Stable value fund average calculated using Hueler Universe data for a mandate size of $1 million in assets.

7 Please note that this is the net expense ratio excluding interest expense. Interest expense can result from portfolio investment transactions and is not paid to PIMCO.

Cost Analysis

Expense Ratio Peer Group Data1

Page 48

Active Manager Scorecard – Peer Ranking of Benchmark Returns1


Index Legend

Top Quartile

2nd Quartile

3rd Quartile

4th Quartile

1Source: eVestment Peer Universes

• Active management performance relative to indices during 1Q 2020 was mixed. U.S. all-, mid-cap, and global equity active managersoutperformed their respective indices during the quarter but struggled to do so over the trailing five and ten years. U.S. mid-cap and non-USmarkets were the only equity segments where active management outperformed over the trailing one- and three-year periods. U..S large capand small cap indices outperformed over all periods shown. Non-U.S. equity active managers underperformed their respective indices duringthe quarter but outperformed over one-, three, five-, and ten-year periods. While Global equity active management has outperformed duringthe quarter, one-, and ten-year periods, it has struggled over the trailing three and five years.

• Performance amongst different fixed income styles was also mixed during the quarter. Intermediate fixed income active managersunderperformed over all periods shown above similar to core fixed income which, however, outperformed over the trailing ten years. Longcredit active managers continued to outperform their respective indices not only during the quarter but long term. While high yield has beensuccessful over the quarter and one year, it has struggled to exceed the index during trailing three-, five- and ten-year periods.

• Aon recommends plan sponsors consider passive options where active management does not reliably add value.

Peer Group/Index Qtr 1 Year 3 Years 5 Years 10 Years Qtr 1 Year 3 Years 5 Years 10 YearsAll Cap Equity/ Russell 3000 Index -20.9% -9.1% 4.0% 5.8% 10.1% 51% 43% 37% 30% 31%Large Cap Equity/ Russell 1000 Index -20.2% -8.0% 4.6% 6.2% 10.4% 50% 45% 39% 36% 34%Large Cap Equity/ S&P 500 Index -19.6% -7.0% 5.1% 6.7% 10.5% 46% 40% 37% 30% 33%Mid Cap Equity/ Russell Midcap Index -27.1% -18.3% -0.8% 1.8% 8.8% 55% 53% 52% 49% 44%Small Cap Equity/ Russell 2000 Index -30.6% -24.0% -4.6% -0.2% 6.9% 49% 48% 47% 48% 49%Non-U.S. Equity/ MSCI ACWI ex-US -23.4% -15.6% -2.0% -0.6% 2.1% 50% 53% 52% 60% 76%Emerging Markets Equity/ MSCI EM -23.6% -17.7% -1.6% -0.4% 0.7% 47% 50% 43% 54% 43%Global Equity/ MSCI ACWI -21.4% -11.3% 1.5% 2.8% 5.9% 57% 51% 46% 48% 66%Core Fixed Income/ Bloomberg Barclays Aggregate 3.1% 8.9% 4.8% 3.4% 3.9% 18% 16% 18% 29% 56%Long Credit/ Bloomberg Barclays Long Credit -4.7% 9.0% 6.6% 4.7% 7.3% 76% 75% 76% 76% 79%Intermediate FI/ Bloomberg Barclays Intermediate Gov/Credit 2.4% 6.9% 3.8% 2.8% 3.1% 20% 14% 15% 21% 44%High Yield FI/ Bloomberg Barclays High Yield -12.7% -6.9% 0.8% 2.8% 5.6% 55% 58% 44% 23% 21%

Peer Ranking of Index ReturnIndex Return

Page 49

Appendix

Page 51

· The rates of return contained in this report are shown on an after-fees basis unless otherwise noted. They are geometric and time weighted. Returns for periods longer thanone year are annualized.

· Universe percentiles are based upon an ordering system in which 1 is the best ranking and 100 is the worst ranking.

· Due to rounding throughout the report, percentage totals displayed may not sum up to 100.0%. Additionally, individual fund totals in dollar terms may not sum up to the plantotals.

Notes

Page 52

Past performance is not necessarily indicative of future results.

Unless otherwise noted, performance returns presented reflect the respective fund’s performance as indicated. Returns may be presented on a before-fees basis (gross) or after-fees basis (net). After-fee performance is net of each respective sub-advisors’ investment management fees and include the reinvestment of dividends and interest as indicated onthe notes page within this report or on the asset allocation and performance summary pages. Actual returns may be reduced by Aon Investments’ investment advisory fees or othertrust payable expenses you may incur as a client. Aon Investments’ advisory fees are described in Form ADV Part 2A. Portfolio performance, characteristics and volatility also maydiffer from the benchmark(s) shown.

The information contained herein is confidential and proprietary and provided for informational purposes only. It is not complete and does not contain certain material informationabout making investments in securities including important disclosures and risk factors. All securities transactions involve substantial risk of loss. Under no circumstances does theinformation in this report represent a recommendation to buy or sell stocks, limited partnership interests, or other investment instruments.

The data contained in these reports is compiled from statements provided by custodian(s), record-keeper(s), and/or other third-party data provider(s). This document is not intendedto provide, and shall not be relied upon for, accounting and legal or tax advice. Aon Investments has not conducted additional audits and cannot warrant its accuracy orcompleteness. We urge you to carefully review all custodial statements and notify Aon Investments with any issues or questions you may have with respect to investmentperformance or any other matter set forth herein.

The mutual fund information found in this report is provided by Thomson Reuters Lipper and Aon Investments cannot warrant its accuracy or timeliness. Thomson Reuters LipperGlobal Data Feed provides comprehensive coverage of mutual fund information directly to Investment Metrics, Aon Investments’ performance reporting vendor, via the PARisperformance reporting platform. Thomson Reuters Lipper is the data provider chosen by Investment Metrics, and as such, Aon Investments has no direct relationship with ThomsonReuters Lipper.

Refer to Hedge Fund Research, Inc. www.hedgefundresearch.com for information on HFR indices.

FTSE International Limited (“FTSE”) © FTSE 2017. “FTSE®” and “FTSE4Good®” are trademarks of the London Stock Exchange Group companies and are used by FTSEInternational Limited under license. The FTSE indices are calculated by FTSE International Limited in conjunction with Indonesia Stock Exchange, Bursa Malaysia Berhad, ThePhilippine Stock Exchange, Inc., Singapore Exchange Securities Trading Limited and the Stock Exchange of Thailand (the "Exchanges"). All intellectual property rights in theFTSE/ASEAN Index vest in FTSE and the Exchanges. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings orunderlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Aon Investments USA Inc. (“Aon Investments”) is a federally registered investment advisor with the U.S. Securities and Exchange Commission (“SEC”). Aon Investments is alsoregistered with the Commodity Futures Trade Commission as a commodity pool operator and a commodity trading advisor, and is a member of the National Futures Association.The Aon Investments ADV Form Part 2A disclosure statement is available upon written request to:

Aon Investments USA Inc.200 East Randolph StreetSuite 700Chicago, IL 60601ATTN: Aon Investments Compliance Officer

Disclaimer

Page 53

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