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HomeMy WebLinkAboutDocumentation_Pension General_Tab 06_05/04/2009 (2)'~ 'r z a a .~ ~~ Village of Tequesta ~, ~~ ~~ ~~ ~~~, ~ General Em to ees' p Y ~~~ Ff ~b Pension Plan ~{}}`XXX~ua~S~ ~_. ~^'°;: t ~~¢ro ~ ~. 6 ~ ~~~ ~ Quarterly Review ~ ~ sA Vt~W~X~.Ti(JC~I)A}iNC;~C)Lil'.~UM 1st Quarter 2009 ~~~ ~~;~~~; r~ Y ~~~Fm„ ~~ ,~ THE o As of 3/31/09, the portfolio held 80 securities and approximately 92% of the securities in the portfolio were constituents in the S&P 500 Index. Based on average market cap, the portfolio was smaller than the index ($47.2 B vs. $66.7 B). As should be expected fora "core" portfolio, the portfolio exhibited both growth and value characteristics. On the growth side, the trailing twelve-month earnings per share (EPS) growth was significantly greater than the index (-0.36 vs. -62.4), the price-to-book was greater than the index, and the dividend yield was less than the index. On the value side, the trailing twelve month price-to-earnings ratio was significantly less than the index (12.3 vs.30.8) and the twelve-month forward EPS growth was significantly less than the S&P 500 Index. A lower total debt-to-equity ratio (0.90 vs. 1.72) and a higher return on equity (24.7 vs. 21.1) represent a focus on companies with stronger balance sheets. . °~6 Bmrk Holdings 91.65 100.00 °.~ Tap 25 Holdings 46.75 38.65 Tap 15 Holdings 30.30 28.20 d'N f- LL it Y V ORACLE CORP ~ G.LI 2.15 HEWLETT PAGKA RD CO 212 _ _ DISCO SYS INC 2.10 BECTON DICKINSON & CO 2.06 Total: 10.70 Market Cap -Median 18,410,418.405.00 5.455.352.630.00 Div Yld 2.20 2.81 EPS Gr Hst 12M -0.36 -62.38 EPS Gr For 12M -4.14 -0.28 EPS Gr Hst 5Y 21.86 16.64 Prof Marg Op W5 13.03 8.80 Ret Eq 24.70 20.14 _ PE Tr 12M 12.34 30.78 PE For 12M 11.32 12..57 PEG For 12M 1.02 1.23 _ Price !Book ~ 2.17 1.75 Relative Beta (GRM) -0.05 -0.03 Relative Growth (GRM} D24 -0.06 Relative Momentum (GRM) -0.04 -0.08 Relative Size ( GRM) 0.12 0.40 _ Relative Value (GRM) -0.16 0.02 Ttl Dbtl Eqty WS 0.90 1.72 VILLAGE OF TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND Investment Performance Attribution Supplement Portfolio Attribution: Investment results for the Plan were negative as both the equity and broad fixed income markets grappled with policy uncertainty and deteriorating economic data. The fund investment returns, while negative (-3.84%) net of management fees, where measurably better than the program benchmark successfully avoiding an additional decline of 2.67%. These results placed the Fund in the top (20th) percentile of peers for the quarter. Outperformance was attributable to a combination of factors. Dana continues to maintain a below equity target allocation at 46% vs. 60%. Equity perfornance preserved assets relative to the benchmark in a declining market (-8.59%) vs. (-11.01%) which compared favorably to peers (30r~' percentile). Year over year results for the period ended March, while negative, have outperformed the benchmark preserving 7.20% of additional asset decline. This places the Fund in the top (5"') percentile of peers. The steeply negative market trajectory continues to impact rolling returns with all trailing periods below the actuarial required rate of return. However, relative to peers, the Fund ranks in the top (1 Ot~~ percentile, and is ahead of the benchmark over the trailing three year period. Recommendations: o Broaden ordinance language governing investments o Amend Investment Policy Guidelines to reflect broader but prudent investment standards Purpose: Improve potential program investment experience thereby lowering contribution costs through the following benefits: -Lower the cost of investment services through commingled fund use and resulting economies of scale (commingle fund), (index fund). -Broader utilization and selection of investment management services not previously able to consider -Look to the addition of low correlating asset classes to improve the probability of achieving the required rate of return; minimize potential for asset decline Equity Attribution: Key elements of equity manager attribution are as follows: Note to analysis: We used Thomson Portfolio Analytics for the holdings-based attribution analysis, which i~s based on monthly holdings for the Plan's domestic equity portfolio managed by Dana Investment Advisors. Holdings-based attribution can help to identify active elements of the investment manager. The analysis does not reflect the impact of cash flows or management fees; actual portfolio returns may differ. o Based on holdings attribution from Thomson, the Dana domestic equity portfolio (excluding cash) outperformed the S&P 500 Index by 220 basis points (-8.8% vs. -11.0%). Avg Avg Port Bmrk Port Bmrk Alloc Select Total Sector Name Port Wt Bmrk Wt Return Return Contrib Contrite Effect Effect Effect ` Total Portfolio _-..v.w......._.._~._.._...._ ---_._..._.. - __ -- --- - -- 100 00 100.00 -8.79 11 01 __..__ ._.,,. _.. 8 79 .,~.,,~,_......... 11 01 ...____,..~ .... 0.57 .................~........ 1.65 _........~.~,_..,w_,,. 2.22 .M.....,,.. MktCap less than $2611 2.41 1.19 -8.1.7 -7.19 0.20 0.12 ~ -0.13 0.06 MktCap btw 526 and $10B 21.66 17.48 -1.11 -9.55 0.13 -1.28 1.62 1.72 MktCap btw 5106 and $206 MktCap btw 5206 and $2006 MktCap greater than $2006 23.48 17.78 -10.55 -9.35 50.37 57.78 -10.97 -12.01 2.08 5.76 -14.74 -14.40 -2.09 -1.47 -6.65 -7.49 -a.3s -o.s9 0.02 -0.63 -0.61 ~ o.so a.s8 -0.02 0.16 The portfolio's market cap allocation benefited performance; the overall "allocation effect" was + 57 bps. Unlike 4Q08, smaller capitalization stocks within the S&P 500 Index performed better than the larger cap stocks. The portfolio was overweight small and mid cap stocks (inkt. cap up to $ l OB) relative to the index and underweight the larger cap stocks (mkt. cap greater than $206). Avg avg Port Bmrk Part Bmrk allot Select Tatal Sector Name Port Wt Bmrk Wt Return Return ContrFb Co~trib Effect Effect Effect ..___.^.--- -_ _ - _ ----- _-___-- ---_ -----____A--- -------- Total Poalfoiio ~ 100,OD 100.04 -8.79 -11.01 -8.73 -11.01 0.92 1.30 2.22 Energy 10,40 13.79 -8.19 -L1.57 -0.81 -1.55 -0.02 ! 0.39 Materials 3,73 3,14 -7,54 -2.05 -0.29 -0.05 4.05 -0,12 Industrials 11,96 14,31 -17.51 -20.88 -2.30 -2.43 ~ 0.31 Consumer Discs~etdanary 9,73 8,37 2,62 -8.12 0.23 -0.57 0.04 ~ L,40 Consumer Staples 13.64 12.97 -11,68 -10.54 -1.51 -1.36 -0.05 _ -0.19 Health Care 16.93 15.64 -7.31 -8.00 -1.28 -1,28 -0.01 ~ 0.13 Financials 7.29 10.64 -25.19 -28.82 -2.23 -3.66 ~ L,QO Information Techn©logy 20.18 16.87 0.09 4.30 0.00 0,72 ~ ~ -0.26 Telecamm Service 2.48 3:86 -9.97 -7.i3 -D.23 -0,23 -0.05 -0.07 -0.12 Uti@ities 3,61 4,41 -9.36 -10.79 -0,35 -0.51 0.02 0,07 0,08 A majority of the relative outperformance versus the S&P 500 was a result of good stock selection; the "selection effect" at the portfolio level was +130 bps, while the "allocation effect" was +92 bps. At the sector level, .the largest contribution to the excess return during the quarter was stock selection within the Consumer Discretionary sector (+96 bps). Poor stock selections within the Information Technology detracted the most (-76 bps). At the security level, the two largest contributions during the quarter were Gamestop Corp. and Apple Inc., which are in the Consumer Discretionary and Financials sectors, respectively. On a less positive note, the largest two detractors were General Dynamics (Industrials) and Harris Corp. (Information Technology). The best and worst performing stocks in the portfolio (CME Group and AFLAC) are in the Financials sector. lap Contribttt4rs by tlvldir~g Batt®n~ Cmntributars Fsy H+~ (cling Company (dame __..__ e ---__-_ __ avg VNt __.__ - Return --------.... Contrib _ _....__..__.. Company Name __. avg Wt Return ____ __. Corrotrib _ ___. GAMESTOIp COttP NEW 2,08 29,36 0.46 GENERAL DYNAMICS CO... 3.87 -27,32 -0,61 APPLE INC 1.92 23.16 0.41 HARRIS CORP DEL 2.27 -23.46 -0.57 CME GROUP INC 0,30 35.93 0,25 PNC FINL SVCS GROUP IN 1.06 -39,32 -0.45 ST 3UDE MED INC 2.05 30.22 0.20 AFLAC INC 4.29 -62,94 -0,43 GOLDMAN SACHS GROII... 0.76 26.32 0.19 LOCKHEED MARTIN CARP 1.95 -17,22 -0,37 --- Largest Hr~idings Company Name avg Wt Return Best Perfr~rrrrers Company Name avg Wt Return tsrst Perfani~ers Company Name Avg Wt Return i':3ECTON DICK3N'S0N Ec CO 2.30 -1.18 ChiE GROUP INC 0.34 35,53 AFLAC INC 0.29 -62.94 HARRIS CORP DEL 2.27 -23.46 GAMESTOP CORP NEYJ 2.08 29,36 U5 BANCORP DEL 0,35 -42.78 PHILIP MOR?tIS INTL INC 2,2i -17.07 GOLDMAN SACttS GRCrUP IN 4.76 26,32 C FINL SVCS GROUP IN 1,06 -39.32 HEti+JLETT PACK~4RD CO 2.20 -11.38 APPLE INC 1.92 23,16 GENERAL ELECTRIC CO 0,79 -35.67 4MAL MART STORES INC 2.11 -6.53 ROSS STORES INC 0.93 21.13 METLIFE INC 0,65 -34.68 The Market Environment Major Market Index Performance Period Ended: March 31, 2009 MSCI EAFE MSCI Emerg. Mkts. S8P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill Quarter Performance -13.9 1.0% -11.0 % -10.8 -10.5 -9.0"/ -15.0 i 0.1 % -1.0 2.2 % -1.9 0.1 -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russel 13000 Russel 11000 Russell MidCap Russel 12000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill Five Year Annualized Performance MSCI EAFE MSCI Emerg. Mkts. S8P 500 Russel 13000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill One Year Performance -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% Ten Year Annualized Performance MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russel 13000 Russel 11000 Russell MidCap Russel 12000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Source: MSCI Captal Markets, Russell Investments, Barclays Capital & Bogdahn Consulting, LLC. ~~ TH1=. _ BOGDAHN GROUP Page 3 of 27 Investment Market Summary First Quarter 2009 Playing the Waiting Game... No Magic Bullet. Although the economy appeared to unravel at an incredibly rapid pace by any historical standard over the last nine months, the multiple layers of credit expansion and financial engineering that led to the current recessionary environment simply do not lend themselves to an equally short-term resolution. This lack of a "quick fix" to the economy's woes is difficult information for market participants, which often react as poorly to future uncertainty as they do to the actual realization of bad news, to effectively digest. However, it is also important to remember that the economy and the market are not on the same clock. The market represents a classic leading economic indicator, and if history is any guide, the market will recover even as headline economic data, such as unemployment (currently 8.5%), continues to deteriorate. While corporate earnings will certainly represent a significant part of the market's ultimate recovery, the first critical component must be some return of investor confidence in the financial system and equity investments as an essential tool for long-term portfolio growth. It was a tale of two markets between the performance of developed and emerging market indices during the quarter. The developed markets as measured by the MSCI-EAFE Index, declined in both U.S. dollars (-13.9%) and local currency (-10.0%) for the quarter. Within the 21 country index, Norway, which was down more than 40% in the 4tn quarter of 2008, posted the index's only positive country performance with a U.S. dollar return of +3.3%. The major countries of the index (Japan, United Kingdom, France, Switzerland and Germany), which collectively represent more than 60% of the index, were each down in excess of -10% during the quarter. Unlike the wide performance bands of the domestic style indices, the international style distribution was somewhat tighter in the developed markets with the MSCI- EAFE Value Index returning -15.5% vs. the MSCI-EAFE Growth Index return of -12.3%. After declining more than 50% in 2008, the MSCI Emerging Market Index returned +1.0% in U.S. dollars and +4.2% in local currency for the quarter. After ending 2008 with a positive month, investors were hopeful that the first quarter of 2009 would represent the start of the market's recovery. Unfortunately, the market spent much of the first quarter adding to the losses sustained during the last quarter of 2008. This downward spiral, which thankfully received a large dose of late March relief, shook the resolve of many long-term investors. The broad market Russell 3000 Index posted a return of -10.8% for the quarter. While two of the ten economic sectors of the Russell 3000 Index returned worse than -20% (financials and industrials) and three other sectors posted returns of less than -10% (energy, consumer staples and utilities), unlike the 4th quarter, there was a pocket of positive performance. The information technology sector, which was the core index's most heavily weighted sector (18.5%), managed a return of +3.5% for quarter. In the large cap space, the S&P 500 and Russell 1000 Index posted returns of -11.0% and -10.5% respectively. Further down the capitalization spectrum, the Russell MidCap Index returned -9.0% for the quarter and the small cap Russell 2000 Index returned adisappointing -15.0%. Due to the relative strength and weight of the information technology sector in the indices, growth style benchmarks outpaced their value counterparts by a wide margin at every capitalization range. The broad market Russell 3000 Value Index fell by -17.0% while the Russell 3000 Growth Index returned a much more mild -4.5%. Large cap issues, as measured by Russell 1000 Index, returned -16.8% for value vs. -4.1% for growth. The Russell MidCap Value Index returned -14.7% vs. -3.4% for the Russell MidCap Growth Index. In the narrowest spread of the quarter, the Russell 2000 Value Index returned -19.6%, which fell short of the Russell 2000 Growth Index return of -9.7% by a margin of 9.9%. Page 2 of 27 A large number of the government's broad-based initiatives to bring stability and return liquidity to the fixed income markets were fleshed out during the quarter. The structure and size of these programs continues to evolve on a daily basis and their ultimate success will likely be difficult to measure in the near-term. However, it is also clear that the Fed and Treasury remain on the offensive, as they vocally assure the market's participants that they will do what is necessary to ensure stability and liquidity to the financial markets. The Barclays Capital U.S. Aggregate Index mild return of +0.1% masked some of the performance disparity within the bond market's government, mortgage and credit sectors. Reversing a massive flight to quality that occurred in the bond market since the outset of the credit crisis, government obligations pulled back during the quarter with the Barclays Government Index returning -1.0% for the quarter. Outside of government issues and aided by prospect of protection through government programs, the Barclays Mortgage Index returned +2.2% for quarter. As a symbol of the fear still present in the credit market, the Barclays Corporate Investment Grade Index posted a return of -1.9%. Despite these investment grade credit losses, many lower quality credit issues were positive. Aided by its higher coupons, the Merrill Lynch High Yield Master II Index returned +5.0% for the quarter. Despite our current economic problems, we have faith in the future the United States and the adaptability of the financial system. As large and unpopular as some programs may be, it is a natural expectation for the government to temporality pick up the slack and attempt to drive economic growth forward as personal consumption and business spending slows. The timing of the market and eventual economic recovery is difficult to pinpoint and as Tom Petty phrased it so eloquently back in 1981, "the waiting is the hardest part". ~~ BOGDAHN GROUP The Market Environment Russell Style Index Performance Period Ended: March 31, 2009 rQuarterPerformance ( OneYear Performance 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCaplndex MidCap Growth 2000 Value 20001ndex 2000 Growth -25.0% -20.0% -15.0% -10.0% Five Year Annualized Performance 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCaplndex MidCap Growth 2000 Value 20001ndex 2000 Growth -6.0% -5.0% Source: Russell Investments 3000 Value 30001ndex 3000 G rowth 1000 Value 10001ndex 1000 Growth MidCap Value MidCaplndex MidCap Growth 2000 Value 20001ndex 2000 Growth -50.0% -40.0% -30.0% -20.0% Ten Year Annualized Performance 3000 Value 30001ndex 3000 G rowth 1000 Value -e•s % ', 10001ndex -2s% 1000 Growth -s.3% ' MidCap Value ~ 3•~~/ i MidCaplndex i ', 2s% MidCap Growth ' A•9% i 2000 Value <•9 20001ndex ~I ~•9% j 2000 Growth -ts^,6 -i3.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% ~~ BOGDAHN GROUP Page 5 of 27 -10.0% 0.0% -5.0% 0.0% -4.0% -3.0% -2.0% -1.0% 0.0% The Market Environment Long-Term Major Market Index Performance Period Ended: March 31, 2009 Fifteen Year Annualized Performance MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill 7.3%y' ~) 6.4 ] 6.6 s.a% I 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Twenty-Five Year Annualized Performance Thirty Year Annualized Performance MSCIEAFE MSCI Emerg. Mkts. S8P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill MSCI EAFE MSCI Emerg. Mkts. S8P 500 Russel 13000 Russel 11000 Russell MidCap Russel 12000 Twenty Year Annualized Performance s.e % Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill MSCIEAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 0.0% Source: MSCI Capital Markets, Kussell Investments, Barclays Capital & Bogdahn Consulting, LLC. Page 4 of 27 3.0% 6.0% 9.0% I Z,U%o "I J.U%o ~~ BOGDAHN GROUP The Market Environment Domestic Credit Sector & Broad Market Maturity Performance & Rate Comparison Period Ended: March 31, 2009 Quarter Performance One Year Performance AAA AA A BBB <BBB 1-3 Yr 1-5 Yr 1-10 Yr 10+ Yr AAA AA A BBB <BBB 1-3 Yr 1-5 Yr 1-10 Yr 10+ Yr -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 2009 Market Rates 7.00 -~ Fed Funds Rate -TED Spread 6.00 -3-Month Libor -BAAl10yr Spread 5.00 - 4.00 3.00 2.00 1.00 0.00 ~~~ Jan-09 Feb-09 Mar-09 Source: Merrill Lynch ,Mortgage-X.com , US Department of Treasury & St. Louis Fed Page 7 of 27 -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% Treasury Yield Curve 6.00 5.00 4.00 3.00 2.00 1.00 0.00 -d-12/31 /2007 0 9/30/2008 -~-12/31 /2008 -f} 3/31 /2009 4 O O O O O Imo 3mo 6mo 1yr 2yr Syr Syr Tyr 10yr 20yr 30yr ~~,: BOGDAHN ~' GROUP The Market Environment 4th Quarter & Year-to-Date GICS Sector Performance & (Year-End Sector Weight) Period Ended: March 31, 2009 Russel 13000 ^ 1Q--Year Energy (11.8%) Materials (3.7%) Industrials (10.3%) Consumer Disc (9.8%) Consumer Staples (11.5%) Health Care (14.8%) Financials (12.0%) I nfo Technol ogy (18.2%) Telecom Services (3.7%) Utilities (4.4%) ^ 1Q--Year Energy (7.0%) Materials (5.5%) Industrials (12.0%) Consumer Disc (18.5%) Consumer Staples (8.8%) Health Care (9.9%) Financials (15.8%) Info Technology (14.8%) Telecom Services (2.5%) Utilities (9.2%) ^QTR Energy (12.5%) 01-Year Materials (3.7%) Industrials (9.9%) Consumer Disc (9.4%) Consumer Staples (12.0%) Health Care (14.7%) Financials (11.3%) Info Technology (18.2%) Telecom Services (3.8%) Utilities (4.4%) 70.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% -70.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% ' ~~-71.2% ~~.~ -00.5 i ti1.2 -as.7^i -zo.e % -09.6 % ~. -6.5 -37.7 ~ -70.3% I -23.2% a.3% -19.9 -2zo % -58.1 %~ '' 3.5 ~ i ~ 30.2 ' -s.a % -26.7 -~1.a% ' -29.7 Rusell MidCap -70.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% Source: Thompson Financial Page 6 of 27 oQTR Energy(4.2%) 01-Year Materials (3.7%) Industrials (15.3%) Consumer Disc (12.3%) Consumer Staples (4.1%) Health Care (15.8%) Financials (20.8%) Info Technology (18.3%) Telecom Services (1.3%) Utilities (4.6%) Russell 1000 Russel 12000 -70.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% ~~ BOGDAHN GROUP Total Fund March 31, 2009 December 31, 2008: $1,021,478 March 31, 2009: $1,013,100 Segments Market Value Allocation Segments Market Value Allocation ^ Equity 472,092 46.2 ^ Equity 434,869 42.9 Domestic Fixed Income 519,507 50.9 Domestic Fixed Income 522,974 51.6 ^ Cash Equivalent 29,879 2.9 ^ Cash Equivalent 55,257 5.5 Page 9 of 27 ~~ THF. BOGDAHN GROUP The Market Environment Taking along-Term Perspective 10-year rolling monthly returns of stocks, bonds and cash (1/1/26 - 3/31/09) Page 8 of 27 Annualized Return (%) 25 20 15 10 5 ----------- --------------------------------- r----------------------------------------a---t,a~---------------------~-t-t-----------------------------------------------••------~---,ri-t i ----«-----~~--~-~ ~--------~---------------------~ -5 t---------~---------------------------------------------------------------------------------------------------------------------------------------------------------- -Equity -Bond -Cash __I ,~h QO A5 pi0 yh SoQ' fo5 'l0 ,~h rb0 ~y oi0 9~ AO Ay p`D @~+ 0G 04 0G 0G 04 ~4 ®4 0G 04 04 ~G ®4 0G ~4 ~G ~ ~ Q Q ~ ~ Q ~ ~ ~ ~ ~ ~ Q ~ ~ 880 rolling 10-year observations -Stocks outperforms Bonds 736 rolling periods or 84% of the time. -Stocks outperforms Cash 749 rolling periods or 85% of the time. -Bonds outperform Cash 723 rolling periods or 82% of the time. Source: lbbotson & Zephyr Associates ~~ 'I-tf F. BOGDAHN GROUP Tequesta General Employees' Asset Allocation As of March 31, 2009 Asset Allocation R&D 1,330 0.13 3,050 0.28 3,465 033 2,239 0.22 11,737 1.16 Dana Balanced Portfolio 1,040,011 99.87 1,076,818 99.72 1,057,361 99.67 1,019,239 99.78 1,001,364 98.84 Total Fund 1,041,341 100.00 1,079,868 100.00 1,060,825 100.00 1,021,478 100.00 1,013,100 100.00 Page 11 of 27 THE BOGDAHN GROUP Total Fund March 31, 2009 December 31, 2008: $1,021,478 Market Value Allocation ~$) ~%) ^ Dana Balanced Portfolio 1,019,239 99.8 R&D 2,239 0.2 Page l 0 of 27 March 31, 2009: $1,013,100 Market Value Allocation ~$) ~%) ^ Dana Balanced Portfolio 1,001,364 98.8 ® R&D 11,737 1.2 Tr-ie _., BOGDAHN GROUP Tequesta General Employees' Financial Reconciliation As of March 31, 2009 Financial Reconciliation Portfolio 1,019,239 ~ ;; 2,239 30,000 - -20,492 - -p 1,021,478 - 52,156 -20,492 - Financial Reconciliation FYTD 1,057,36( -30,000 11.2,327 - - -385 6,998 -11,070 1,060,825 - ]24,327 -33,718 - -11,080 Page l2 of 27 -46,655 -142,741 ~ THE. ,, BOGDAHN GROUP Tequesta General Employees' Comparative Performance Trailing Returns As of March 31, 2009 Fund (Net) Fund Policy Target Alloc Moderate Funds (MF) Median Fund Policy 500 Core/Large Cap Equity (SA+CF) Median Total Domestic Fixed i3arcap Intcrniediaac U.S. Goverunent/Credit Difference US Intermediate Fixed Income (SA+CF) Median S&P 500 Difference US Core/Large Cap Equity (SA+CF) Median Dana's Fixed Portfolio Barcap Intermediate U.S. Government/Credit Difference US Intermediate Fixed Income (SA+CF) Median Returns for periods greater than one year are annualized. Returns are expressed as percentages. Total Ftimd Policy= 60% S&P 500, & 40% LB G/C Intermediate Dana's inception date is 10-13-2005 Page 13 of 27 -3.84 (20) -11.76 (8) -16.47 (5) -3.32 (l0) 0.74 (5) 1.57 (4) 1.98 N/A 1 -6.5! (78) -17.45 (43} -23.67 (34) -5.63 (29) -2.42 (341 -1.08 134) 0.45 N!A 2.67 5.72 7.20 2.31 3.16 2.65 1.50 -5.09 -18.09 -25.31 -7.10 -3.36 -1.79 N/A -3.84 -11.76 -16.26 -3.18 0.88 1.81 2.12 1 -6.51 -17.45 -23.67 -5.63 -2.42 -1.08 0.45 2.67 5.72 7.41 2.45 3.30 2.89 L64 -8.59 (30) -29.03 (39) -35.60 (35) -12.18 (43) -3.88 (15) -1.17 (14) -0.81 N/A 0 -I 1.01 (68) -30.54 171) -38.09 (76) -13.06 (661 -7.43 (79) -4.7(i (54) -4.64 N11 2.42 1.51 2.49 0.88 3.55 3.59 3.83 -10.44 -29.75 -37.04 -12.51 -6.51 -3.43 N/A 0,13 (65) 6.40 (18) 5.22 (18) 6.54 (25) 5.26 (37) 4.07 (45) 4.50 N/A 0 _(1.(15 (80) 4J9 ((i5) L96 (65) 5.6;1 (56) 4.72 159) 3.69 j6X? ;.~1, N'.A 0.18 1.61 3.26 0.92 0.54 0.38 0.57 0.66 5.10 3.26 5.80 4.95 4.02 N/A -8.59 (30) -29.03 (39) -35.60 (35) -12.18 (43) N/A N/A -8.36 N/A 1 -E L01 (68) -30.54 171) -38.09 (76) I3.1?6 1661 -?.43 (791 -4.76 (5-11 -9,5n 'v!A 2.42 1.5 ] 2.49 0.88 N/A N/A 1.14 -10.44 -29.75 -37.04 -12.51 -6.51 -3.43 N/A 0.13 (65) 6.40 (18) 5.22 (18) 6.54 (25) N/A N/A 5.89 N/A 1 -0.05 (80) 4.79 (65) 1.96 165) 5.62 (56) 4.72 (59) 3.69 (68) > I; NIA 0.18 1.61 3.26 0.92 N/A N/A 0.76 0.66 5.10 3.26 5.80 4.95 4.02 N/A ~~ THE BOGDAHN GROUP Tequesta General Employees' Comparative Performance As of March 31, 2009 otal Fund Policy xed-Asset Target Alloc Moderate Funds (MF) Median otal Fund Policy &P 500 Core/Large Cap Equity (SA+CF) Median Intermediate U.S. Government/Credit Intermediate Fixed Income (SA+CF) Median __~_ r. ___~~__ n___~r_in_ P 500 Core/Large Cap Equity (SA+CF) Median Intermediate U.S. Government/Credit Intermediate Fixed Income (SA+CF) Median Returns for periods greater than one year are annualized. Returns are expressed as percentages. Total Fund Policy= 60% S&P 500, & 40% LB G/C Intermediate Dana's inception date is 10-13-2005 Page l4 of 27 11.64 (49) 10.35 (9) 11.09 (26) 2.08 (99) 0.83 (100) 1.58 (1) 12.02 (44) 7.88 (40) R.37 (68) ~.0, (~>9) 1.24 (l0U) 1.97 (1) -0.38 2.47 2.72 0.05 -0.41 -0.39 11.55 7.25 9.54 9.40 15.67 -8.18 11.64 10.67 11.09 2.70 0.83 1.58 1 2.x)2 %.Sti r ,.,. 2.(l 1?4 1.'>% -0.38 2.79 2.72 0.67 -0.41 -0.39 16.70 (49) 18.01 (1) 18.74 (17) N/A N/A N/A lG.d4 (58) 10.?9 (49) 12jS (81) I3.8% (60) 24.40 (44) -20.49 (76) 0.26 7.22 6.49 N/A N/A N/A 16.61 10.78 14.40 14.28 24.02 -19.07 5.25 (72) 3.24 (100) 1.49 (93) N/A N/A N/A 5.43 154) 3.54 (93) 1.48 (94) 2.66 (67) 6.(10 (33) 8.09 (50) -0.18 -0.30 0.01 N/A N/A N/A 5.46 3.91 2.09 2.87 5.52 8.08 16.70 (49) N/A N/A N/A N/A N/A 16.44 (58) 10.79 (49) 12.25 (8l) 13.87 (60) 24.40 (44) -20.49 (76) 0.26 N/A N/A N/A N/A N/A 16.61 10.78 14.40 14.28 24.02 -19.07 5.25 (72) N/A N/A N/A N/A N/A 5.43 (54) 3.54 (43) 1.48 (94) 2.66 (h7) 6.00 (33) 8.04 (50) -0.18 N/A N/A N/A N/A N/A 5.46 3.91 2.09 2.87 5.52 8.08 BOGDAHN GROUP Tequesta General Employees' Total Fund Portfolio (Net) March 31, 2009 Market Value Market Value As of Contributions Distributions Fees Expenses Income J, As of 12/31/2008 Transfers Apprec Deprec. 3/31/2009 Total Fund Portfolio (NeC) 1,021 - 52 -20 - - 7 -47 1,013 •. t t t 1 Market Value Net Ca ital Market Value As of Transfers Contributions Distributions Fees Expenses Income ApprecJ Deprec. As of 9/30/2008 3/31/2009 Total Fund Portfolio (Net) 1,061 - 124 -34 - -I I IS -143 1,013 10.00 0 00 -10.00 -- -20.00 c a -,0.00 -40.00 -50.00 ~~ ~~~ 1 Oct-2008 1 2 3 4 Quarter To Year Years Years Years Mar-2009 ^ Total Fund Portfolio (Net) -3.84 (20) -I 1.76 (8) -16.47 (5) -8.92 (8) -3.32 QO) 0.74 (5) • Total Fund Policy -6.51 (78) -17.48 (43) -23.67 (34) -12.41 (30) -5.G3 (29) -2.42 (34) Median -5.09 -18.09 -25.31 J435 -7.10 -3.36 $150.0 $ 140.0 $ 130.0 $120.0 1 16.7 5 $110.0 Years 103.0 1.57 (4) 1.08 (34) $ 100.0 12/00 9/02 6/04 3/06 12/07 3/09 -1.79 Total Fund Portfolio (Net) +-~ Total Fund ['olicy 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec-2008 Sep-2008 .lun-2008 Mar-2008 Dec-2007 Sep-2007 Total Fund Portfolio (Net) -8.23 (10) -5.33 p2) -0.02 (15) -4.95 (42) -0.34 (30) 1.05 (78) Total Fund Policy -11.73 (28) -5.50 (13) -2.12 (81) -4.56 (35) -0.84 (50) 2.40 (32) Mixed-Asset Target Alloc Moderate Funds (MF) Median -13.40 -8.06 -1.03 -5.40 -0.85 1.93 Page 15 of 27 ~^ TfiE ` BOGDAHN GROUP Tequesta General Employees' Total Fund Portfolio (Net) March 31, 2009 ., ,. ~ ~, t ,t ,, 20.0 12.0 a.o d z Over P erfo~man ce 0 • -a.o w a -lz.o w -20.0 Under P erfinnan ce 12.0 20.0 $ Mar-2009 o -20.0 -12 0 -4.0 4.0 F Total Fund Policy ('% ) -~UnderPerfriimance -^-OverPerfompnce -~-Jnn-2004 3.50 0.00 -3.50 -7.00 -10.50 0 a -la.oo -17.50 I~ 5.00 LOAD 15.00 Risk(StandardDeviation'% ) Return Standard Deviation ^ Total Fund Portfolio (Net) -3.32 9.02 • Total Fund Policy -5.63 10.84 Median -7.10 I L51 o.oo 25.00 a '~ so.oo- a 7 ° 75.00 v a ~. 100.00 ,-~~--- 6/04 'total Period ^ • ^ • ~ ~ I ~~ ^ ~ ~ ~t ,: 6/OS 6/OG 6/07 6/OS 3/09 5-25 25-Median Median-7g 75-95 Count Count Count Count 10 (50%) 0 (0%) 3 (15%) 7 (35%) 2 (10%) 4 (20%) 5 (25%) 9 (45%) ^ Total Fund Portfolio (Net) 20 • Total Fund Policy 20 5.00 2.50 0.00 -2.50 -5.00 ci -7.so -10.00 20.00 5.00 7.50 1.0.00 ] 2.50 15.00 Risk (Standard Deviation '%) Retm~n Skandard Deviation ^ Total Fund Portfolio (Net) 1.57 7.94 ® Total Fund Policy -1.08 8.98 Median -1.79 9.55 17.50 Tracking Sharpe Downside Error Ma ket Market Alpha IR Ratio Beta Risk Capture Capture Total Fund Portfolio (Net) 7.20 92.65 81.3 L 1.20 0.69 -0.72 0.80 7.87 Total Fund Policy 0.00 100.00 100.00 0.00 N/A -0.81 I.00 9.60 t ' Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total Fund Portfolio (Net) 3.27 102.40 79.68 2.44 0.78 -0.15 0.82 6.32 Total Fund Policy 0.00 100.00 100.00 0.00 N/A -0.42 I.00 7.58 Page 16 of 27 ~~ BOGDAHN ~: ,.. GROUP Tequesta General Employees' Total Equity Portfolio March 31, 2009 Market Value Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec.p/'Deprec. As of 12/31/2008 3/31/2009 Total EquityPorifolio 1,021 - 52 -20 - - 7 -47 L013 Market Value Market Value As of Aet Contributions Distributions Fees Expenses Income Capital As of 9/30/2008 Transfers Apprec./ Deprec. ;/31/2009 Total Equity Portfolio 1,001 - 124 -34 - -Il IS -143 1,013 10.00 0.00 -L0.00 '-~ .. -20.00 e e x -30.00 -ao 00 50 00 - . 1 Quarter ^ Total Equity Portfolio -8.59 (30) ~ S&P 500 -1 LOl (68) Oct-2008 To Mar-2009 -29.03 (39) -30.54 (71) $180.0 $160.0 $140.0 $ I zo.o $loo.o 1 2 3 4 5 $80.0 Year Years Years Years Years -35.60 (35) -22.06 (39) -12.18 (43) -3.88 (15) -1.17 (14) -38.09 (76) -23.34 (67) -13.06 ((i6) -7.43 (79) -4.7G (84) Median -10.44 -29.75 -37.04 -22.70 -12.5 I -G.51 -3.43 $60.0 ~ 3/04 3/05 3/06 3/07 Total Equity Portfolio «~ S&P 500 3 3 ~i- 3/08 3/09 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec-2008 Sep-2008 Jun-2008 Mar-2008 Dec-2007 Sep-2007 Total Equity Portfolio -22.3fi (68) -9.86 (fi5) 0.67 (21) -9.43 (46) -2.27 (38) 0.22 (84) S&P 500 -21.94 (59) -8.37 (39) -2.73 (83) -9.44 (47) -3.33 (GG) 2.03 (47) US CorelLarge Cap Equity (SA+CF) Median -21.74 -9.02 -1.22 -9.47 -2.87 L98 Page 17 of 27 ~0 ~~~ ~~ 'rIIF. BOGDAHN GROUP Tequesta General Employees' Total Equity Portfolio March 31, 2009 3 0.0 Over P erfoiman ce 18.0 G.0 0 -6.0 0 M •~ -18 0 w -30.0 Under P ertonnauce 0 F -30.0 -IR.O -G.0 6.0 18.0 30.0 S&P 500 (% ) fUnderPerfrnmance fOverPertom~nce -/Mar-2007 -Mar-2009 6.00 0.00 -6.00 -! -12.00 -18.00 0 a -2a.oo -30.00 5.00 10.00 1.5.00 20.00 25.00 30 00 Risk (Standard Deviation '% ) Return Standard Deviation ^ Total F..quity Portfolio -12.18 15.89 • S&P 500 -13.06 16.22 - Median -12.51 16.22 5.00 1.0.00 15.00 20.00 Risk (Standard Deviation '% ) Return Standard Deviation ^ Total Equity Portfolio -1.17 14.89 • S&P 500 -4.76 14.28 - Median -3.43 14.41 25.00 t Tracking Up Down Sharpe Downside Error Market Marke[ Alpha IR Ratio Aeta Risk Capture Capture Total Equity Portfolio 3.87 100.79 96.88 0.74 0.26 -0.85 0.98 ISAS S&P 500 0.00 100.00 100.00 0.00 N/A -0.92 1.00 15.90 t Tracking Sharpe Downside F,rror Market Market ;11pha IR Ratio Bcta Risk Capture Capture Total Equity Portfolio 5.29 113.09 9 L31 3.78 0.72 -0.20 0.99 12.74 S&P 500 0.00 100.00 100.00 0.00 N/A -0.47 1.00 12.55 Page 18 of 27 c a c c e 0.00 25.00 50.00 .. 1 ~ ~ ~ 100.00 r- 6/04 G/OS 6/06 6/07 G/OS 3/09 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count ^ Total Equity Portfolio 9 7 (78%) 2 (22""/0) 0 (0%) 0 (0%) • S&P 500 20 0 (0%) 0 (0%) 13 (65%) 7 (35%) 10.00 5.00 0.00 -5.00 c `o ;, -10.00 m -1.5.00 ~~ TI-IE BOGDAHN GROUP Tequesta General Employees' Dana's Equity Portfolio March 31, 2009 t ~ ~ Market Value Net Ca ital Market Value As of Transfers Contributions Distributions Fees Expenses Income ApprecJ Deprec. As of 12/31/2008 3/31/2009 Dana's Equity Portfolio 1,019 -30 52 - - - 7 -47 1,001 '• 1 ~ ~ Market Value , t Net Ca ual p Market Value As of 'Transfers Contributions Distributions Fees Expenses Income Apprec / Deprec. As of 9/30/2008 3/31/2009 Dana'sEquiryPortfolio 1,057 -30 II2 - - -II IS -143 1,001 10.00 0.00 -10.00 -20.00 c 04 -30.00 -40.00 -50.00 ~~ ~~ I occ-zoox Quarter To Mar-2009 ^ Dana's Equity Portfolio -8.59 (30) -29.03 (39) • S&P 500 -I L01 (68) -30.54 (71) 1 2 3 Year Years Years -35.60 (35) -22.06 (39) -12.18 (43) -38.09 (76) -23.34 (67) -13.06 (66) 4 5 Years Years N/A N/A 7.43 (79) -4.76 (84) $ 145.0 $130.0 $11.5.0 $100.0 $85.0 $ 70.0 $55.0 I .9 3.5 Median -10.44 -29.75 -37.04 -22.70 -12.51 -6.51 -3.43 -Dana's Equity Portfolio -~ S&P 500 1 / ~ 1 1 1 1 I 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending F,nding Ending Ending Ending Dec-2008 Sep-2008 .fun-2008 Mar-2008 Dec-2007 Sep-2007 Dana's Equity Portfolio -22.36 (fib) -9.86 (65) 0.67 (21) -9.43 (46) -2.27 (38) 0.22 (84) S&P 500 -21.94 (59) -8.37 (39) -2.73 (83) -9.44 (47) -3.33 (66) 2.03 (47) US Core/Large Cap Equity (SA+CF) Median -21.74 -9.02 -1.22 -9.47 -2.87 1.98 Page 19 of 27 ~~. BOGDAHN GROUP 12/05 9/06 6/07 3/08 3/09 Tequesta General Employees' Total Fixed Portfolio March 31, 2009 ' . ~ Market Value Net Ca ital Market Value As of Transfers Contributions Distributions Fees Expenses Income ApprecJ Deprec As of 12/31/2008 3/31/2009 Total Fixed Portfolio 1.021 - 52 -20 - - 7 -47 1,013 ' • t t t 1 Market Value Net Ca teal p ~7arket Value As of Transfers Contributions Distributions Fees Expenses Income Apprec. / Deprec. As of 9/30/2008 3/31/2009 Total Fixed Pottfolio I,O6L - 124 -34 - -11 IS -143 1,013 t 1 ~ : 1 1 1 1 1 $ 13 0.0 10.00 5.00 0.00 c m -5.00 a -10.00 -15.00 1 Oct-2008 1 2 3 4 5 Quarter To Year Years Years Years Years Mar-2009 ^ Total Fixed Portfolio 0.13 (64) 6.40 (22) 5.22 (17) 6.70 (20) 6.54 (25) 536 (35) 4.07 (49) • Total Fixed Policy -0.05 (72) 4.79 ('S2) 1.96 (59) 5.36 (45) 5.62 (45) 4.85 (45) 3.94 (58) Median 0.48 4.91 2.61 4.89 5.47 4.70 4.0(i $ 120.0 $ 110.0 $ 100.0 $90.0 ~ 3/04 3/05 3/06 3/07 3/08 -Total Fixed Portfolio --~-Total Fixed Policy 3/09 1 1 1 1 I I Quarter Quarter Quarter Quarter Quarter Qu arte r Ending Ending F,nding Ending Ending Ending Dec-2008 Sep-2008 .lun-2008 Mar-2008 Dec-2007 Sep-2007 Total Fixed Portfolio 6.26 (13) 0.17 (10) -1.28 (78) 2.93 (13) 2.64 (64) 2.56 (12) Total Fixed Policy 4.84 (32) -L19 (45) -1.53 (89) 3.00 (9) 2.90 (49) 2.87 (47) US Broad Market Core Fixed Income (SA+CF) Median 3.73 -1.44 -0.94 1.98 2.90 2.85 Page 21 of 27 BOGDAHN GROUP Tequesta General Employees' Total Fixed Portfolio March 31, 2009 R.0 Over 0.00 7.0 Performance ~ 25.00 5 0 ^ ~ - ~ _ ~ ,._. ~ . e 50.00 '": ~ w ^ ~ w ~ ~ a 7r 4 ;,p e 75 00 d d 8 a ' ~~ w Un er ,. 100 00 ~ - Performance . --~---- c ~.0 6/04 G/OS 6/06 6/07 G/08 3/09 F' ]..0 3.0 5.0 7.0 8 0 Total Period 5-25 25-Median Median-75 75-95 Total Fxed Policy('%) Count Count Count Count ^ Total Fixed Portfolio 9 2 (22%) 2 (22%) 1 (I I%) 4 (44%) f Under Performance ~ Over Perfomrance -~ Mar-2007 ~- Mar-2009 • Total Fixed Policy 9 I (1 l%) 4 (44%) 2 (22%) 2 (22%) 10.00 8.00 6.00 4.00 2.00 0 a o.oo -z.oo 6.00 4.50 3.00 e ~ 1.50 a o.oo 2.00 4.00 G.00 8.00 10.00 L50 3.00 4.50 6.00 7.50 9.00 Risk(StandardDeviation %~) Risk(StandardDevi ation'%) Return Standard Deviation Return Standard Deviation ^ Total Fixed Portfolio 6.54 3.84 ^ 'Cotal Fixed Portfolio 4.07 3.90 • Total Fixed Policy 5.62 3.81 • Total Fixed Policy 3.94 4.10 - Median 5.47 3.84 -Median 4.06 3.79 1 ' Tracking Up Down Sharpe Downside Error Market Market Alpha t R Ratio Beta Risk Capture Capture Total Fixed Portfolio 133 9835 57.79 1.97 0.64 0.91 0.80 0.98 Total Fixed Policy 0.00 100.00 100.0(1 0.00 N/A 0.55 I.00 I.68 1 Tracking Up Down Sharpe Downside Errnr Market Market Alpha IR Ratio Reta Risk Capture Capture Total Fixed Portfolio 1.43 84.72 63.53 1.02 0.07 0.32 0.77 1.58 Total Fixed Policy 0.00 100.00 100.00 0.00 N/A 0.23 I.00 2.18 Page 22 of 27 BOGDAHN GROUP Tequesta General Employees' Dana's Fixed Portfolio March 31, 2009 ' ~ t t ~ Market Value Market Value As of Net Contributions Distributions Fees Expenses Income Capital As of 12/31/2008 Transfers Apprec./ Deprec 3/31/2009 Dana's Fixed Portfolio 1,019 -30 52 - - - 7 -47 1,001 Market Value Ne[ Ca dal Market Value As of Transfers Contributions Distributions Fees Expenses Income ,Apprecp/ Deprec. As of 9/30/2008 3/31/2009 Dana's Fixed Portfolio 1,057 -30 112 - - -II IS -143 1,001 10.00 5 00 0.00 c -5.00 C -10.00 15 00 - . Quarter ^ Dana's Fixed Portfolio 0.13 (64) • Barcap Intermediate U.S. Government/Credit -0.05 (72) Median ~~ ~~ Oct-2008 To Mar-2009 6.40 (22) 4.79 (52) 0.48 4.91 1 2 3 4 5 Year Years Years Years Years 5.22 (17) 6.70 (20) 6.54 (25) N/A N/A 196 (59) 5.36 (46) 5.62 (45) 4.72 (48) 3.69 (68) $125.0 $120.0 $115.0 $110.0 $105.0 $ l 00.0 $95.0 Dana's Fixed Portfolio 2.61 4.89 5.47 4.70 4.06 ~-Barcap Interrediate U.S. Government/Credit 1 1 1 I 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec-2008 Sep-2008 Jun-2008 Mar-2008 Dec-2007 Sep-2007 Dana's Fixed Portfolio fi.26 p3) 0.17 (]0) -1.28 (78) 2.93 Q3) 2.64 (64) 2.56 (72) Barcap Intermediate U.S. Govemment/Credit 4.84 (32) -1.19 (45) -1.53 (89) 3.00 (9) 2.90 (49) 2.87 (47) US Broad Market Core Fixed Income (SA+CF) Median 3.73 -1.44 -0.94 1.98 2.90 2.85 Page 23 of 27 T~ BOGDAHN GROUP 12/05 9/06 6/07 3/08 3/09 Tequesta General Employees' Benchmark History As of March 31, 2009 Page 25 of 27 ~~ THE ,. BOGDAHN GROUP Statistics Deifinitions Page 26 of 27 Statistics Description ~IReturn -- Compounded rate of return for the period. ',Standard Deviation -- A statistical measure of the range of a portfolio's performance, the variability of a return around its average return over a specified time period. 'Sharpe Ratio -- Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is the absolute rate of return per unit of risk. The higher the value, the better the product's historical risk-adjusted performance. ..Alpha -- A measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta. It is a measure of the portfolio's historical performance not explained by movements of the market, or a portfolio's non-systematic return. Beta -- A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of a portfolio's non-diversifiable or systematic risk. R-Squared -- The percentage of a portfolio's performance explained by the behavior of the appropriate benchmark. High R-Square means a higher correlation of the portfolio's performance to the appropriate benchmark. Treynor Ratio -- Similar to Sharpe ratio, but focuses on beta rather than excess risk (standard deviation). Represents the excess rate of return over the risk free rate divided by the beta. The result is the absolute rate of return per unit of risk. The higher the value, the better the product's historical risk-adjusted performance. Downside Risk -- A measure similar to standard deviation, but focuses only on the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. The higher the factor, the riskier the product. Tracking Error -- A measure of the standard deviation of a portfolio's performance relative to the performance of an appropriate market benchmark. Information Ratio -- Measured by dividing the active rate of return by the tracking error. The higher the Information Ratio, the more value-added contribution by the manager. Consistency -- The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. The higher the consistency figure, the more value a manager has contributed to the product's performance. Excess Return -- Arithmetic difference between the managers return and the risk-free return over a specified time period. Active Return -- Arithmetic difference between. the managers return and the benchmark return over a specified time period. Excess Risk -- A measure of the standard deviation of a portfolio's performance relative to the risk free return. Market Capture -- The ratio of average portfolio return over the benchmark during periods of positive benchmark return. Higher values indicate better product performance. ,vn Market Capture -- The ratio of average portfolio return over the benchmark during periods of negative benchmark return. Lower values indicate better product performance. Calculation based on monthly periodicity. BOGDAHN GROUP Village of Tequesta General Employees' Retirement Plan Compliance Checklist as of March 31, 2009 1. The Total Plan return equaled or exceeded the 8% actuarial earnings assumption over the trailing three and five year periods. / 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. / 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. / 4. The Total Plan standard deviation was equal to or less than 120% of the total plan benchmark over the trailing three and five year periods. / 1. Total equity returns meet or exceed the benchmark over the trailing three and five year periods. / 2. Total equity returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. / 3. The total equity allocation was less than 70% of the total plan assets at market. / 4. The total equity allocation was less than 60% of the total plan assets at cost. / 5. Total foreign equity was less than 10% of the total plan assets at cost. / 1. Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. 3. The quality of the fixed portfolio was investment grade or better 1. Manager outperformed the index over the trailing three and five year periods. 2. Manager ranked within the top 50th percentile over trailing three and five year periods. 3. Less than four consecutive quarters of under performance relative to the benchmark. / 4. Standard deviation <= 120% of the index over the trailing three and five year periods. I ~~ THE BOGDAHN ~`' ~$ GROUP HE BOGDAHN GROUP simplihwlg .1"Our investment and fiduciary decisiWis h T! S 0 1 'ax, : SG 21