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Home My WebLink AboutDocumentation_Pension General_Tab 04_08/03/2009 lll~.l•b., ~~ ~ ~questa General Employees' Pension Plan w q ~ A " ~.l ~ Quarterly Review vc+~r~vc,•.ncx;nnraNC~tavr.coM 2nd. Quarter 2009 THE BC7GDAHN GROUP simplifying your nrvesMienr eui/ frduciary decisions Investment Market Summary Dislocation Nation The equity market advanced for most of the quarter; however, as June came to a close investors were reminded that volatility is alive and well. While the market experienced more than a 40% recovery off its March lows, it would be a naive assumption to expect another 40% positive spike without the market taking a breather. Much of the dislocated valuations that caused the market to bounce rapidly off its low are also at the core of the recent equity market pullback. It is logical for investors to take an inventory of risks as the prospect for near-term earnings and economic growth is weak. Although the market's decline at the end of quarter may have caused recent talk of "green shoots" to wither on the vine, a variety of data points indicate that the broader economy has at least slowed its pace of decline. Sometimes we just have to consider less negative to be a positive. The second quarter of 2009 posted some of the strongest equity performance numbers in years and represented a welcome relief after more than a year of negative results. The market rally, which began in mid-March, continued unabated for most of the quarter despite rising unemployment and disappointing economic statisitcs. The broad market Russell 3000 Index posted a return of 16.8% for the quarter. While all ten economic sectors of the Russell 3000 Index posted positive returns for the quarter, performance was particularly strong in materials, industrials, consumer discretionary, financials and information technology sectors, each of which posted returns in excess of the broad index. While the index's other five sectors finished behind the 16.8% return of the Russell 3000 index, only telecommunications services (4.2%) returned less than 10% for the quarter. In the large cap space, the S&P 500 and Russell 1000 Index posted returns of 15.9% and 16.5% respectively. Further down the capitalization spectrum, the Russell MidCap Index returned 20.8% for the quarter and the small cap Russell 2000 Index returned a similar 20.7%. Due to the broad-based sector strength in the various indices, particularly in financials, value style benchmarks outpaced growth benchmarks by a narrow margin (<1%) in all but the small capitalization space. The broad market Russell 3000 Value and Growth indices both returned 16.8%. Large cap issues, as measured by Russell 1000 style benchmarks, returned 16.7% for value vs. 16.3% for growth. The Russell MidCap Value Index returned 20.9% vs. 20.7% for the Russell MidCap Growth Index. Unlike the larger capitalization ranges, growth investments (23.4%) outpaced value investments (18.0%) by 5.4% for the quarter within the Russell 2000 style indices. This outperformance by growth in small cap was primarily due to performance in the growth-oriented information technology sector (30.3%) vs. the value-oriented financials sector (9.9%). • Equity market strength was not isolated to domestic markets during the quarter as both developed and emerging international markets advanced. Un-hedged international holdings got an additional boost from U.S. dollar weakness, which was widespread during the second quarter. The developed markets as measured by the MSCI-EAFE Index, increased in both U.S. Page 2 of 27 Second Quarter 2009 dollars (25.8%) and local currency (17.3%). Within the 21 country index, each country posted positive results. Performance within the index was led by Spain, Sweden, Hong Kong and Singapore, each of which returned more than 35% for the quarter in U.S. dollars. Unlike the narrow performance bands of most of the domestic style indices, the international style distribution was broader with the MSCI-EAFE Value Index returning 30.3% vs. the MSCI- EAFE Growth Index return of 21.7%. Emerging markets posted strongest equity index performance for the second quarter in a row with the MSCI-EM index returning 34.8% in U.S. dollars and 24.6% in local currency. Much like the developed index, each of the 22 countries represented by the emerging markets index posted positive performance for the quarter. The "risk" trade returned to the bond market with a vengeance during the second quarter as investors sought the yield advantage of corporate obligations. As spreads continued to narrow during the quarter, lower quality debt got the largest boost with the Merrill Lynch High Yield Master II index posting an "equity-like" return of 23.2%. Despite the Fed's best efforts to keep interest rates low to fuel its numerous recovery programs and foster attractive mortgage rates, the yield curve steepened measurably during the quarter for maturities beyond one year. Although the Barclays Capital U.S. Aggregate Index returned a seemingly mild 1.8% for the quarter, things were not as smooth in the government, mortgage and credit sectors that make up the broad index. The Barclays Government Index posted its second straight quarterly loss with a return if -2.2%. The mortgage sector was not much stronger but did manage to post a positive return of 0.7%. The narrowing credit spreads previously mentioned also benefited higher-quality corporate issues with the Barclays Corporate Investment Grade Index posting a strong return of 10.4% for quarter. When market dislocation causes investment "pillars" like strategic asset allocation and prudent manager selection to break down, it can be harmful to investor expectations. The loss of long-term focus can result in short-term decision making and timing-based portfolio positioning. Unfortunately, such a limited view toward achieving along-term term set of objectives can further exacerbate the frustration and uncertainty associated with adverse market conditions. It is important to remember that the long-term nature of institutional investors is the "foundation" of what allows them to take advantage of the structural and emotional conditions that negatively affect investors with shorter time horizons. While we may be in a period of severe market dislocation, the death of diversification and strategic asset allocation as effective tools toward achieving long-term objectives is greatly exaggerated. THE ~ ~ BOGDAHN ~' ~ R GROUP The Market Environment Major Market Index Performance Period Ended: June 30, 2009 I Quarter Performance I One Year Performance MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 2o.s % 20.E % 34.8 % I MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russe112000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill -40.0% -30.0% -20.0% -10.0% Ten Year Annualized Performance Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill MSCI EAFE MSCI Emerg. Mkts. S8P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Five Year Annualized Performance Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russe112000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill Page 3 of 27 3mos. T-Bill -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% -5.0% Source: MSCI Capital Markets, Russell Investments, Barclays Capital & Bogdahn Consulting, LLC. 0.0% 5.0% 10.0% 15.0% ~~,~ BOGDAHN ~~~~ GROUP 0.0% 10.0% 20.0% The Market Environment Long-Term Major Market Index Performance Period Ended: June 30, 2009 Fifteen Year Annualized Performance I Twenty Year Annualized Performance MSCIEAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill MSCI EAFE MSCI Emerg. Mkts. 6.9 ~.o % ~.~ % a.a% s.s % 6.6 ] 6.8 s.s % MSCIEAFE MSCI Emerg. Mkts. S8~P 500 Russell 3000 Russel 11000 Russell MidCap Russel 12000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill 0.0% 2.0% 4.0% 6,0% 8.0% Thirty Year Annualized Performance 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Twenty-Five Year Annualized Performance MSCIEAFE MSCI Emerg. Mkts. S8P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 S8P 500 Russe113000 Russell 1000 Russell MidCap Russe112000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill Page 4 of 27 3mos. T-Bill 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Source: MSCI Capital Markets, Russell Investments, Barclays Capital & Bogdahn Consulting, LLC. ~~ THF. BOGDAHN `-~~ GROUP Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 10.0% 12.0% The Market Environment Russell Style Index Performance Period Ended: June 30, 2009 rQuarterPerformancel 3000 Value 30001ndex 3000 Growth 1000 Value 16.7 1000 I ndex ~e.s % 1000 Growth 76.3 MidCap Value zo.s% MidCap Index 2o.s % MidCap Growth zo.7% 2000 Value 1a.o % 2000 Index zo.7 % 2000 Growth 23A % 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Five Year Annualized Performance I 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCaplndex MidCap Growth 2000 Value 20001ndex 2000 Growth -2.5% -2.0% Source: Russell Investments Page 5 of 27 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCaplndex MidCap Growth 2000 Value 20001ndex 2000 Growth -35.0% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% ~ Ten Year Annualized Performance 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 G rowth MidCap Value MidCaplndex MidCap Growth 2000 Value 20001ndex 2000 Growth 0.2 % -1.5 -3.9 -0.2 -1.8% .a.z % 4.0 % 3.z /> o.o % s.o % z.a % -o.s % -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% BOGDAHN GROUP One Year Performance I -1.5% -1.0% -0.5% 0.0% The Market Environment Quarter & 1-Year GICS Sector Performance & (Quarter-End Sector Weight) Period Ended: June 30, 2009 Russe113000 (Russell 1000 ^QTR Energy (11.3%) 01-Year Materials (3.8%) Industrials (10.4%) Consumer Disc (9.9%) Consumer Staples (10.6%) Health Care (13.8%) Financials (14.2%) InfoTechnology (18.5%) Telecom Services (3.2%) Utilities (4.3%) ^QTR EnergYl11.8%) 01-Year Materials (3.8%) Industrials (10.0%) Consumer Disc (9.7%) Consumer Staples (11.2%) Health Care (13.7%) Financials (13.7%) Info Technology (18.4%) Telecom Services (3.4%) Utilities (4.3%) 1z.o+ i d3.5 ns% d0.7 35.0 20.3 19.1 % -1 a.2 % i 10.1 -i os % 9.6 -~ 0.8 31.8% J6.3% 20.0 % -18.6 % ' 3.9 -z1.a % 11.8 % -za.s % 12.5b/o .14.5 11a.7% ro.2 % 20.4 J4.7 20.0 10.3 %' -1o.a% 10.3 -io.a % 29.0 -35.2 zos % -18.3 4.2 -21.6 11.4 % -27.3 -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% Rusell MidCap ^QTR Energy(7.2%) za.s% 01-Year -56.4 % ~. Materials(6.1%) -31.5% 26.2% Industrials 12.9% ~ 2a.1% ( ) ~'i .35.2+; Consumer Disc (14.8%) i 23.3% I, -22.0% i Consumer Staples (7.2%) h7.1 % -13.5 Health Care (9.3%) 11a.5% -11.5 Financials (17.8%) 34s'% 1sa% Info Technology (14.4%) 1ss % -25.4 Telecom Services (1.9%) s.5% , X27.6 Utilities (8.2%) -3s.1 % 137 i -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% Source: Thompson Financial Page 6 of 27 -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% zs.3N° OQTR Energy(4.5%) -65.0% 01-Year _ Materials (3.8%) z6.3%' 33.$ Industrials (16.0%) ' zz.oi ', -31L9 ~ zs.11e Consumer Disc (12.9%) 'i _2t.a% Consumer Staples (3.5%) ~, 14'7 i a.z % 18.4 Health Care (15.1%) -11 0% Financials (19.5%) I ' ss% -24.3 Info Technology (19.7%) ' 30.3% -14.3 1d.9% ~ Telecom Services (1.3%) _2s.6 % ~ Utilities (3.6%) `" s.1 % -8.3 -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% ~ BOGDAHN l GROUP The Market Environment Domestic Credit Sector & Broad Market Maturity Performance & Rate Comparison Period Ended: June 30, 2009 Quarter Pertormance One Year Performance AAA AA A BBB <BBB Govt Mort 1-3yrG/M/C 1-5yr G/MIC 1-10yr G/M/C 10+yrG/M/C AAA AA A BBB <BBB Govt Mort -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2009 Market Rates 7.00 +^*~ Fed Funds Rate -TED Spread -3-Month Libor 6.00 -~B"°~/l OyrSpread -10yrTreasury -- - 10yrTIPs 5.00 ~ "" ~ ~~ 4.00 3.00 2.00 y-~. 1.00 0.00 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Source: Merrill Lynch ,Mortgage X. com , US Department of Treasury & St. Louis Fed Page 7 of 27 1-3yrG/M/C 1-5yr G/M/C 1-10yrG/M/C 10+yrG/M/C 6.7 -6.0% -3.0% 0.0% 3.0% 6.0% 9.0% 12.0% Treasury Yield Curve 6.00 5.00 4.00 3.00 2.00 1.00 0.00 -s-12/31/2007 -~-1 2/3 112 008 ~-3/31!2009 r? 6/30!2009 ~~ 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5yr 7 yr 10 yr 20 yr 30 yr ~~ ~ BOGDAHN `~ GROUP The Market Environment A Visualization of Crisis and Globalization Over the Last 30 Years 3-year rolling correlations of Large Cap, Small Cap, International & Broad Market Fixed Income Correlation 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 -0.1 -0.2 -0.3 -0.4 -0 5 -International vs Large Cap --- -Small Cap vs. Large Cap -----------------•----------------------------------------------------------------------------------------- ---------------- -International vs. Small Cap --- -------------------------------------------------------------------------------------------------------------- --- ------------------------------------- -Broad Fixed vs. Large Cap oti ~ ~ e'` e~ ~ 01 00 ~°' ~ o'` o~ o~ oR o~ ~ a1 0~ o0 00 0'` o`~ o`~ o°` oh ~ 01 0o d'' ~JOOC ~C O0C O0C O0C OTC O0C O0C O0C O0C OmC O0C O0C O0C O0C O0C O0C O0C OTC O0C Q~C ~C ~C O0C O0C O0C OOC~JC~ Source: Zephyr Associates ~~"\ ThIE BOGDAHN Page 8 of 27 GROUP Total Fund June 30, 2009 March 31, 2009: $1,013,100 June 30, 2009: $1,121,764 Segments Market Value Allocation Segments Market Value Allocation ^ Equity 434,869 42.9 ^ Equity 598,286 53.3 ^ Domestic Fixed Income 522,974 51.6 Domestic Fixed Income 490,459 43.7 ^ Cash Equivalent 55,257 5.5 ^ Cash Equivalent 33,018 2.9 Page 9 of 27 ,: BOGDAHN GROUP Total Fund June 30, 2009 March 31, 2009: $1,013,100 Market Value Allocation ~$) ~%) ^ Dana Balanced Portfolio 1,001,364 98.8 R&D 11,737 1.2 Page l0 of 27 June 30, 2009: $1,12],764 Market Value Allocation ~$) ~"/o) ^ Dana Balanced Portfolio ].,111,782 99.1 ®R&D 9,981 0.9 ~~_ ~~ BOGDAHN `" GROUP Tequesta General Employees' Asset Allocation As of June 30, 2009 Asset Allocation R&D 3,050 0.28 3.465 0.33 Dana Balanced Portfolio 1,076,818 99.72 1,057,361 99.67 Total Fund 1,079,868 100.00 1,060,825 100.00 11,737 1.16 9,981 0.89 1,001,364 98.84 l,] 11,782 99.11 1,013,100 100.00 1,121,764 100.00 Historical Asset Allocation By Segment ] 00.0 80.0 ~ 60.0 0 u ~ 40.0 ~ 20.0 0.0 9/08 10/08 11/08 12/08 1/09 2/09 3/09 4/09 5/09 6/09 Iiquity ~ Domestic Fixed Income ~ Cash Equivalent Page I 1 of 27 ~~", THE BOGDAHN ~' ~ ~ GROUP Tequesta General Employees' Financial Reconciliation As of June 30, 2009 Financial Reconciliation Dana Balanced Portfolio 1,001,364 -11,000 61,826 - - ~? -874 8,109 52,358 1,111,782 R&D Account 11,737 11,000 10 -12,765 - ~` - - - 9,981 Total Fund 1,013,100 - 61,836 -12,765 - -874 8,109 52,358 1,121,764 Financial Reconciliation FYTD Dana Balanced Portfolio 1,057,361 -41,000 174,153 - - -11,944 23,5 96 -90,383 1,111,782 R&D Account 3,465 41,000 12,010 -46,483 - -10 - - 9,981 Total Fund 1,060,825 - 186,163 -46,483 - -11,954 23,5 96 -90,383 1,121,764 Page 12 of 27 ~~;- BOGDAHN GROUP Tequesta General Employees' Comparative Performance Trailing Returns As of June 30, 2009 Fund (Net) I~ un~l I'olic~ Target Alloc Moderate Funds (MF) Median Fund I'olicv 500 Core/Large Cap f;quity (SA+CF) Median al Domestic Fixed cats Inicrmcdialc 1 '. ti. Guy ~ rnmcnl/Credit Intermediate Fixed Income (SA+CF) Median SAX P 500 US Core/Loge Cap Equity (SA+CF) Median r~xeu runwuu Intermediate t`.~. (~o~~ernmcnl/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 ]0-13-2005 Page 13 of 27 5.86 (98) -6.59 (39) -11.57 (23) -1.63 (24) i.S1 (9) 2.82 (9) 111.1? 18ti1 -~>.I' (671 -1-I.I? 1-4'1 --'-"~ f~~{ -0.4~ 1-111 11.7(, 1-1`)1 -4.27 2.53 2.55 0.66 1.96 2.06 12.51 -7.78 -14.88 -3.01 -0.80 0.66 5.86 -6.59 -11.45 -1.54 1.65 2.98 10.1 ~ -`~-IZ -I-l.ll -~.?9 -(LJ; n.-6 -4.27 2.53 2.67 0.75 2.10 2.22 14.19 (70) -18.96 (49) -26.95 (63) -8.41 (74) -1.47 (14) 1.07 (13) 1~.9~ i381 -19.-1? 1~~?1 --?6?1 t>;1 -8._'? (681 _!.>, (?'1 -_'.Z~ fR~l -1.74 0.51 -0.74 -0.19 2.80 3.31 15.39 -19.06 -26.08 -7.66 -3.59 -].13 -0.25 (99) 6.13 (74) 6.32 (52) 6.30 (59) 4.72 (GG) 4.G6 (69) L67 t7i,r ~~_~1 t71) ~?7 r~~l 6.13 1661 ~_~I ~?S1 J.~? t76~ -1.92 -0.41 I.OS 0.17 0.21 0.09 2.62 7.65 6.37 6.52 4.99 4.96 14.19 (70) -18.9 6 (49) -26.95 (63) -8.41 (74) N/A N/A 11.91 {tt)) 1 / -14~_i/ (~1~) -~~l ~~ (~_l~ -l).~~ {~li~l ~1 't.7/ l (l?I 1 ',.ZY 1 (}\7~ -1.74 0.51 -0.74 -0.19 N/A N/A 15.39 -19.06 -26.08 -7.66 -3.59 -1.13 4.24 N/A 02/01/2004 3.U6 N :A 0.18 N/A '1.1 ~ I`~ 0.71 N/A -0.25 (99) 6.13 (74) G.32 (52) 6.30 (59) N/A N/A 5.40 N/A 11/01/2005 1.67 (761 1i.5~ 1711 `..'-% 1781 6.1? fbbl -4.~1 (781 1. `7 1761 ~.?~ ti'~1 -1.92 -0.41 I.OS 0.17 N/A N/A 0.16 2.62 7.65 G.37 6.52 4.99 4.96 N/A ~^ TFIF, `: BOGDAHN ,.- GROUP Tequesta General Employees' Comparative Performance As of June 30, 2009 Total Fund (Net) -10.34 (12) l 1.64 (48) 10.35 (9) 11.09 (26) 2.08 (99) 0.83 (100) 1.58 (1) lotol Fund Policy -I'.-46 (25) I?.0~' (-13) 7.88 (40) 5.37 (68) 2.03 (99) I.'_-l (IOU) 1.97 (I ) Difference 2.12 -0.38 2.47 2.72 0.05 -0.41 -0.39 Mixed-Asset Target Alloc Moderate Funds (MF) Median -14.54 11.49 7.26 9.49 9.40 15.67 -8.25 Total Fund (Gross) -10.10 l 1.64 10.67 11.09 2.70 0.83 1.58 l~~tal Fund Pulic~ -I~.16 1,1)' 7.58 8.37 ?.03 I.?-1 1.97 Difference 2.36 -0.38 2.79 2.72 0.67 -0.41 -0.39 Total Equity -19.68 (33) 16.70 (49) 18.01 (1) 18.74 (17) N/A N/A N/A s~~P~nU -~L9S t63i 16.-11 t~R) 10.79 t~0) I~.,~ 1511 1;.57 {,9) _-1.-10 t~4) -~0.~19 r76) Difference 2.30 0.26 7.22 6.49 N/A N/A N/A US Core/Large Cap Equity (SA+CF) Median -21.38 16.67 10.78 14.35 14.27 24.10 -19.04 Total Dome tic Fi d 4 47 27 5 25 72 24 3 100 1 49 93 N/A N/A N/A xe s . ( ) . ( ) . ( ) . ( ) 13arcz~p Intermediate 1 .S. Go~crnmenCCredit 3.1 ~ 150) ; .:1~ 1~-4) ~.>-4 19;) 1.~8 19-4) '.66 f67) 6.00 133) 8.09 (50) Difference 1.34 -0.18 -0.30 0.01 N/A N/A N/A US Intermediate Fixed Income (SA+CF) Median 3.09 5.46 3.91 2.09 2.87 5.52 8.08 Dana's Equity Portfolio -19.68 (33) 16.70 (49) N/A N/A N/A N/A N/A S~YP~OU -1.95 16~) 16.-1 (351 IU.7~> 1`U) I~.'_~ 1SI) I,.87 L>91 ~-1.-10 114) -~U.~~9 (76) Difference 2.30 0.26 N/A N/A N/A N/A N/A US Core/Large Cap Equity (SA+CF) Median -21.38 16.67 10.78 14.35 14.27 24.10 -19.04 Dana's Fixed Portfolio 4.47 (27) 5.25 (72) N/A N/A N/A N/A N/A [3arcap Intermediate L'.S. Government/Credit ,.I; (30) ~.~; (~~4) 3.3~ (93) 1.18 f9~) ~.6G 167) (i.00 (33) 5.09 (50) Difference 1.34 -0.18 N/A N/A N/A N/A N/A US Intermediate Fixed Income (SA+CF) Median 3.09 5.46 391 2.09 2.87 5.52 8.08 Returns fi>r periods greater than one year are annualized. ~ THE Returns arc expressed as percentages. ~ BOGDAHN Total Fund Policy= 60% S&P 500, Rc 40% LB G/C Intermediate Dana's inception date is 10-13-2005 Page 14 of 27 GROUP Tequesta General Employees' Total Fund Portfolio (Net) June 30, 2009 t ~ Market Value Net Capital Market Value As of Transfers Contributions Distribufions Fees F,xpenses Income Apprec/ Deprec. As of 3/31 /2009 6/30!2009 52 1.132 Total Fund Portfolio (Net) 1,013 - 62 -13 - -1 8 .. t t t 1 , MarketValne Net Capital Market Value As of Transfers Contributions Distributions F'ces t;spenses Income Apprec./ Deprec. As of 9/30/2008 6/30/2009 Total Fund Portfolio (Net) 1,061 - L86 -46 - -L2 24 -90 1.122 Peer Group Analysis -Mixed-Asset Target Alloc Moderate Funds (MF) Cum 30.00 20.00 10.00 ^ 0.00 ;: ~ -10.00 -20.00 -30.00 1 Oct-20118 1 2 3 4 5 Quarter To Year Years Years Years Vears .lun-2009 ^ Total Fund Portfolio (Net) 5.86 (98) -6.59 (39) -1 L57 (23) -8.00 (23) -1.63 (24) 1.51 (9) 2.82 (9) • Total Fund Policy 10.13 (85) -9.12 (G7) -14.12 (42) -9.74 (38) -2.29 (33) -0.45 (41) 0.76 (49) $1100 $ 130.0 S 120.0 $1lno S 100.0 123.5 113.5 Median 12.51 -7.78 -14.88 -10.52 -3.01 -0.80 0.66 -Total Fund Portfolio (Net) -~~~••-~~ Total Fund Policy t t. ' t 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter F.ndinq Ending Ending Ending Ending F.ndin~ Mar-2009 Dec-2003 Sep-200R .Iun-2008 Mar-2008 Dec-2007 Total Fund Portfolio (Net) -3.34 (20) -8.23 (10) -5.33 (12) -0.02 (IS) -4.95 (41) -0.34 (30) Total Fund Policy -G51 f78) -11.73 (231 -5.50 (14) -2.12 (81) -4.SG (34) -0.84 (50) Ddixed-Asset Target Alluc Moderate Funds (MF) Median -5.13 -13.33 -8.04 -1.05 -5.41 -0.85 Page 15 of 27 ~ ~~~ ~~ = BOGDAHN `' GROUP 12!00 9/02 6/04 3/OG 12/07 G/09 Tequesta General Employees' Total Fund Portfolio (Net) June 30, 2009 zo.o 12.0 4.0 Y 0 -4.0 d -12.0 ~ -20,0 Over P erfomnnce Under P e~fii~man ce o -20.0 -120 r.. fOvet~Pedom~nce Sep-2004 5.00 0.00 -5.00 e ~ -10.00 -4.0 4.0 Total Fund Policy ('% ) ~Y- Jun-2009 12.0 20.0 o.oa e 25.00 •e u 50.00 -._ a ` e d 75 00 ~ i a loo.oo -w - -~ 9/04 Total Period ^ Total Fund Portfolio (Net) 20 • Total Fund Policy 20 7.50 5.00 2.50 e 0.00 -2.50 -5.00 7 0 -15.00 r-- -- -~ - 5 ~ i 5.00 10 00 15.00 20.00 25.00 2.50 5.00 750 10.00 12.50 15.00 17.50 Risk(Standard Dc~~ation'%) Risk(Standard Der~ation % ) Rch~rn Standard Deviafion Return Standard De~~ation ^ Total Fund Portfolio (Net) -1.63 9.24 ^ Total Fwrd Portfolio (Net) 2.R2 8.04 • Total Fund Policy -2.29 11.59 • Total Fund Policy 0.76 9.46 - Median -3.01 12.47 -Median O.GG 1036 t •, Tracking t P °Wn Sharpe Downside Error Market Market ;Vpha IR Ratio Reta Risk Capture Capture _ Total Fund Portfolio (Nett 3.58 80.67 79.97 U.OS 0.12 -0.47 Q77 7.72 Total Fund Policy 0,00 100.00 100.00 0.00 N/A -0.42 1 00 9.55 1 ' Tracking ~ ~ p Down Sharpe Downside Error Market Market Alpha IR Ratio Reta Risk Caphvc Capture Total Fund Portfolio (Nery 3.53 95.45 7267 2.15 0.54 0.01 0.79 6.23 Total Pund Policy 0.00 100.00 100.00 0.00 N/A -O.19 1.00 7.55 Page 16 of 27 ~~ ~ BOGDAHN GROUP ~ • ^ ~ ~ ~ • ~ ~ ~ • • 9/05 9/OG 9107 9/08 6/09 5-25 25-Median Median-7.5 75-95 Count Count Count Count 11 (55%) 0 (0%) 2 (10%) 7 (35%) 2 (10%) 5 (25%) 4 (20°6) 9 (45%) Tequesta General Employees' Total Equity Portfolio June 30, 2009 ~~ t ~ Market Value vet Capital Market Value :~s of 'Transfers Contributions Distributions Fees Expenses Income ,apprec/ Deprec. .~s of 3/31/2009 6/30/2009 Total Equity Portfolio 1,013 - C>2 -13 - -I R 52 1,122 . t t t 1 Market Value Net Ca rtal Market Value As of Transfers Contribufions Distributions Pees Expenses Income ApprecJ Deprec As of 9/30/2008 6/30/2009 Total Equity Portfolio 1061 - IR6 -46 - -12 24 -90 1.122 30DO 1500- 0.00 e -15.00 " z -so.oo -as.oo 1 Quarter ^ Total Equity Portfolio 14.19 (70) ~ S&P 500 15 93 (38) $ 180.0 $ 160.0 $140.0 $120.0 $loo.o $80.0 $60.0 ~~~ ~~~ Oct-2008 1 2 To Year fears .lun-2007 -L8.9G (49) -26.95 (G3) -19.23 (5]) -19.47 (63) -26.21 (53) -19.93 (70) 3 4 Years Years -8.41 (74) -1.47 (l4) -8.22 (68) -4.27 (72) S Years 1.07 (13) -2.24 (85) Median 15.39 -19.06 -26.OR -19.21 -7.66 -3.59 -1.13 -Total Equity Portfolio ~--5&P 500 t t. t 1 l 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar-2009 Dec-2008 Sep-200R .lun-2008 Mar-2008 Dec-2007 Total Equity Portfolio -8.59 (29) -22.36 (67) -9.86 (65) 0.67 (21) -9.43 (47) -2.27 (38) SRcP 500 -I 1.01 (GS) -21.94 (59) -8.37 (39) -2.73 (82) -9.44 (48) -3.33 (G7) US Core/Large Cap Eqwh' (SA+CF) Median -10.49 -21.73 -9.00 -1.31 -9.47 -2.R7 Page 17 of 27 ~'1- BOGDAHN ~' GROUP 3/04 6/05 9/(16 12/07 6/09 Tequesta General Employees' Total Equity Portfolio June 30, 2009 3 0.0 1 R.0 6.0 0 .o ~ -G,0 a° .~ L -I R.0 cP A -30.0 0 F _; 5,00 0.00 -5.00 e -10.00 -15.00 0 -20.00 -25.0(1 - 5.00 0.(10 ~ 25.00 A C c 50.00 a` ~ 75.00 C 100.00 ^ 9/04 9/05 9/OG 9/07 9/08 6/09 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count ^ Total Equity Portfolio l0 7 (70%) 2 (20 %) I (10 %) 0 (0 % ) ~ SRcP 500 20 0 (0%) 0 (0%) 13 (65%) 7 (35%) 15.00 10.00 5 00 e ~ 0.00 0 -5.00 C -10 00 10.00 15.00 20.00 25.00 30.00 35.00 SDO 10.00 1500 20.00 25.00 Risk (Standard Deviation %~) Risk(StandardDev~ation % ) Return Standard Deviation Return Standard Deviation ^ Total Equity Portfolio -R.41 18.44 ^ Total Equity Portfolio 1.07 IG.I 1 • S&P 500 -R.22 19.35 ®SSP 500 -2.24 16.04 - t\4edian -7.66 19.25 Mecfian -1.13 ICAO 30.00 Tracking UP Down Sharpe Downside F,rror M17arket Market Alpha IR Rafio Beta Risk Capture Capture Total Equity Portfolio 3.R1 93.53 96.02 -0.51 -0.07 -0.55 0.96 15.82 S&P 500 0.00 100.00 100.00 0.00 N/A -0.53 1.00 15.81 t Tracking Sharpe Downside F,rror Market Market AI ha P IR Rahn Beta Risk Capture Capture Total Equity Portfolio 5.32 IOR.37 90.3(1 3.40 O.G4 -0.04 0.97 12.70 S&P 500 0.00 100.00 100.00 0.00 N/A -0.27 1.00 12.53 Page 18 of 27 `~ THE r BOGDAHN GROUP 0.0 -I R.0 -G.0 G.0 I R.0 30.0 S&P500(%) fUnderPerfnrmance f-OverPerfrmm~nce }Mar-2007 -0-Inn-Z00~ Tequesta General Employees' Dana's Equity Portfolio .Tune 30, 2009 Market Value Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec.~tDeprec. As of 3/31 /2009 6/30/2009 DanasEquityPortfblio 1,001 -ll 62 - - -1 8 52 1,112 ' t t t 1 . Market Value Market Value As of Net Contributions Distributions Nees Expenses Income Capital :1s of 9/30/2008 Transfers Apprec./ Deprec' 6/30/2009 Dana's Equity Portfi~lio 1,057 -41 174 - - -l2 24 -90 I, 112 30.00 1500 ~ ~® 0.00 i `~' -15.00 C -30.00 -45.00 1 Quarter ^ Dana's Equity Portfolio 14.19 (70) ~ SRP 500 15.93 (38) Oct-2008 t 2 To Year Years .Iun-2009 -18.96 (49) -26J5 (63) -19.23 (51) -19.47 (62) -26.21 (53) -19 93 (70) 3 4 Years Years -8.41 (74) N/A -8.22 (68) -4.27 (72) $1450 $130.0 $115.0 $100.0 $85.0 5 $700 Years N/A -2.24 (85) $55.0 Median 15.39 ' -19.06 -26.08 -19.21 -7.(iG -3.59 -1.13 -Dana's Equity Portfolio S&P 500 t t. t 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar-2009 Dec-2008 Sep-2008 .lun-2008 Mar-2008 Dec-2007 Dana's Equity Portfolio -8.59 (29) -22.36 (67) -9.R6 (65) 0.67 (21) -9.43 (47) -2.27 (3R) SRP500 -11.01 (6R) -21.94 (59) -R37 (39) -2.73 (82) -9.44 (48) -3.33 (67) US Core/Large Cap Equity (SA+CF) Median -10.49 -2L73 -9.00 -1.31 -9.47 -2.87 Page 19 of 27 ~~ ~~~ ~~ ~ BOGDAHN • GROUP 12/05 9106 6/07 3/08 12/08 6/09 Tequesta General Employees' Dana's Equity Portfolio June 30, 2009 t ~ ~. ~ ~ ~ -4 0 0 -7.0 0 -10.0 `o d -13.0 w ~ -IG 0 p -I (i.0 5.00 0.00 -5.00 -10.00 Q -15.00 0 -20.00 -25.00 fUnderPerPornnnce ~OverPerfo~mance -(,Dec-2008 -o- Jun X009 zs z e 50 u a` L 75 C 100 9/O(, 9/07 ,5-2,5 25-Median Median-73 Count Count Count 0 (0%) 2 (G7 %) L (33%) 0 (0%) 0 (0%) 13 (GS%) ^ ^ i ~ ~` -r i 9/08 G/09 73-95 Count 0 (0%) 7 (35%) 30 o, 00 -- 9/04 9/OS Total Period ^ Dana's Equity Portfolio 3 • SRP 500 20 15.00 10.00 5.00 e ~ 0 00 e -5.00 C -10.00 5.00 10.00 15.00 20.00 25.00 3000 35.00 5.00 10.00 15.00 20.00 25.00 30.00 Risk (Standard Deviation '%) Risk (Standard Devi ation % ) Return Standard De viation Reh~rn Standard Deviation ^ Dana's Equity Portfolio -8.41 18.44 ^ Daua's Equity Portfolio N/A N/A • S&P 500 -8.22 1935 • SBcP 500 -2.24 16.04 - Median -7.(,G 19.25 -Median -].13 IC.00 t •. Tracking t Sharpe Downside Error Market arket Alpha IR Ratio Reta Risk Caph~re Capture Dana's Equirv Portfolio 3.81 93.53 96.02 -0.51 -0.07 -0.55 0.96 ]5.82 S&P 500 0.00 100.00 100.00 0.00 N/A -0. ~3 1.00 15.81 t Tracking Up Down Sharpe Downside Error Market Market Alpha IR Ratn Beta Risk Caphire Capture Dana's Equity Portfolio N/A N/A N'A N,A N/A N/A N/A N/A S&P 500 0.00 ID0.00 100.00 0.00 N/A -0.27 1.00 12.53 Page 20 of 27 ~~ ~ BOGDAHN GROUP -13.0 -10.0 -7.0 -4 0 s ~r Soo 1'i, ) Tequesta General Employees' Total Fixed Portfolio June 30, 2009 .. t t ~ Market Value Net Ca rtal Market Value As of Transfers Contributions Distributions Fces Expenses Income ApprecJ Deprec. As of 3/31./2009 fi/30/2009 Total Pixcd Portfolio 1.013 - 62 -13 - -I 8 52 1,122 ' t t t 1, 3larket y'alue Net Capital Market Value As of Transfers Contributions Distributions Fces Expenses Income Apprec./ Deprec. As of 9/30/2008 6/30/2009 Total FixedPotYfolio LOCI - IS(, -4t, - -12 24 -90 1.122 121.4 121.8 1 Oct-2008 1 2 3 4 S Quarter To Year Years Years Years \'ears .lun-2009 ^ Total Fixed Portfolio -0.25 (99) 6.L3 (76) 6.32 (G1) 6.64 (GO) 6.30 (G3) 4.72 (54) 4.GG (72) ~ Total Fixed Policy 1.G7 (83) 6.54 (73) 5.27 (72) 6.32 (64) 6.13 (65) 4.40 (GS) 4.96 (G4) $90.0 3/04 G/OS 9/06 12/07 G/09 Median 2.9R 7.97 7.00 7 OR (i.71 4.R1 525 -Total Fixed Portfolio «--« Total Fixed Policy t t t 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar-2009 Dec-2008 Sep-2008 Jun-2008 Mar-2008 Dec-2007 Total Fised Portfolio 0.13 (66) 6.1fi (13) 0.17 (10) -1.28 (78) 2.93 (14) 2.64 (66) Total Fixed Policy -0.05 (73) 4.R4 (331 -1.19 (45) -1.53 (89) 3.00 (I l) 2.90 (50) US Broad Market Core Fixed Income (SA+CF) Median 0.53 3.84 -1.39 -0.95 1.99 2.90 Page 21 of 27 ~^ THF, `, BOGDAHN GROUP Tequesta General Employees' Total Fixed Portfolio June 30, 2009 t . t ~, ~• _ _ 8.0 - Over 0.00 7.0 Perfi~mpnce ~ e 25 00 • ~ . . a ^ ~- 5.0 ~ - • ~ ~ ~ ', 0 .o ` ^ ~ so.oo ~ t o` • ~ i ~ ~ . ' 3.0 ~ 75.00 - d ~ E Under ~ Petfo~mance 100.00 t---- --r-~ r~~ -~--- - I ~ ~ :a I.0 9/04 9/05 9/OG 9i07 9/08 6/09 `' 1.0 3.0 5.0 7.0 R.0 Total Period 5-25 25-Median Median-75 75-95 Total Fixed Policy ('%) Count Count Count Cnunt ^ Total Fixed Portfolio 10 2 (20%) 2 (20%) 2 (20%) 4 (40%) ~UnderPerform•~nce fOverPerfiim~nce ->~Mar-2007 Jun-2009 • TotalFixedPolicy 10 1 (10%) 4 (40°0) 3 (30°0) 2 (20%) 10.00 8.00 G.00 4.00 2.00 ~ 0.00 -2.00 7.50 G.00 d.50 3.00 c 1.50 C 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 L50 3.00 4.50 6.00 7.50 9 00 10.50 Risk (Standard Deviation '%) Risk (Standard De~~ation % ) Return Standard Deviation Return Standard Deviation ^ Total Fixed Portfolio G30 3.93 ^ Total Fixed Portfolio 4.66 3.48 • Total Fined Policy 6.13 3.74 ~ Total Fixed Policy 4.96 3.64 - Median 6.71 4.02 -Median 5.25 3.69 t ~. Tracking LIp Down Sharpe Downside Error Market Market Alpha IR Rato Beta Risk Capture Capture Totat Fixed Portfolio 1.50 89.81 57.79 1.39 0.09 Q9(, 0.79 0.99 Total Fixed Policy 0.00 10000 100.00 0.00 N/A 0.79 1.00 1.68 t Tracking Up Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total Fixed Portfolio 1.51 80.78 56.32 101 -0.21 0.5 (, 0.73 0.95 Total Fixed Policy 0.00 100.00 100.00 0.00 N/A 0.54 L00 LG8 Page 22 of 27 ~~ ~~ BOGDAHN `.,..~~ GROUP Tequesta General Employees' Dana's Fixed Portfolio June 30, 2009 Market Value Market Value As of Net Contributons Distributions Fees Expenses Income Cap'tal :~s of 3/31/2009 Transfers Apprec./ Deprec. (,/30/2009 Dana's Fixed Portfolio 1,001 -I I 62 - - -1 8 52 1,112 ' t t t 1, Market Value Market Value As of Net Contributions Distributions Fees Expenses Income t"''I'C'''I As of 9/30/2008 Transfers Apprec./ Deprec. 6/30/2009 Dana's Fixed Portfolio 1057 -41 174 - - -12 24 ~)(1 1,112 $125.0 15.00 $120.0 10.00 i $115.0 e al 5.00 ~ $110.0 x o.ou ~~ ^ $105.0 -5.00 ~ ~_ i t i -__ $100.0 I Oct-2008 1 2 3 4 5 Quarter To Year Years Years Years Years .)un-2009 ^ Dana's Fixed Portfolio -0.25 (99) 6.13 (76) G.32 (G1) G.G4 (60) G.30 (63) N/A N/A $95.0 ~ Barcap Intermediate U.S. Government/Credit LG7 (83) G.54 (73) 5.27 (72) 6.32 (64) ti.l3 (65) 4.51 (Gl) 4.57 (73) -Dana's Fixed Portfolio Median 2.98 7.97 7.00 7.08 G.71 4.81 5.25 -~ Barcap Intermediate LJ.S. Govemrrrent/Credit 120.2 1 19.3 1 I 1 1 l 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar-2009 Dec-2008 Sep-2008 .tun-2008 Mar-20118 Dec-2007 Dana's Fixed Portfolio 0.13 (66) 6.2fi Q3) 0.17 (10) -1.28 (78) 2.93 (14) 2.64 (66) Barcap Intermediate U.S. Go~~emmenUCredit -0.05 (73) 4.84 (33) -1.19 (45) -1.53 (89) 3.00 (1 I) 2.90 (50) US Broad Market Core Fixed Income (SA+CF) Median 0.53 3.84 -139 -0.95 1.99 2.90 Page 23 of 27 ~~ THE BOGDAHN GROUP )2/05 9/OG G/07 3/OR 12/08 6/09 70 G.G e -- G.2 0 w° c S.R 9 Y 5.4 i:. e 5.0 :a D Tequesta General Employees' Dana's Fixed Portfolio June 30, 2009 .t ~. Over P erfomtance ^ Under P ertorman ce ~ -- - 5.0 5 4 S.R G.2 6.G Barcap Intermediate 1L5. Government/Credit (% ) fUnderFerformance ~-OverPerfivn><tnce -(r Dec-2008 ~.lun-2009 10.00 8.00 G.00 e 4.00 2.00 0 5 0.00 -2.00 2.00 o.oo e 25.00 C e 50.00 a °. 75.00 100.00 9/04 9/05 9/OG 9/07 9/OR 6709 Total Period 5_25 25-Median Median-75 75-95 Count Count Count Count ^ Dana's Fixed Portfolio 3 2 (G7%) 0 (0%) l (33""/0) 0 (0%) • Barcap Intermediate U.S. Government/Credit 2D 0 (0%) 5 (25%) I (5%) 14 (70%n) ~ t 7.50 G.00 4.50 ~ ~ 3.00 i 1.50 C T 0~0 -~- 4.00 G.00 8 00 10.00 12.00 14.00 1 .50 3.00 4.50 G.00 7.50 9.00 10.50 Risk (Standa rd Deviation '%~) Risk (Standard Deviation'% ) Return Standard Deviafion Return Standard Deviation ^ Dana's Fixed Portfolio 6.3(1 3.93 ^ Dana's Fixed Portfolio N,iA N/A • Barcap ln[emtediate U.S. Government'Credit G.13 3.74 ~ Barcap Intermediate U.S. Government/Credit 4.57 3.43 - Median G.71 4.02 -Median 5.25 3.G9 t Trackin g Up Down IR Sharpe Beta Downside Error Market Market Alpha Ratio Risk Capture Capture Dana's Fixed Portfolio 1.50 RO.R I 57.79 1.39 0.09 0.96 0.79 0.99 Barcap Intermediate U S. CrovemmendCredd 0.00 100.00 100.00 0.00 N/A 0.79 L(10 1.68 t Trackin i; I Ip Market Down Market Alpha IR Sharpe Beta Downside Ri k Error Capture Capture Ratio s Dana's Fixed Portfolio N/A N/A N/A N/A N/A N/A N/A N/A Barcap Intermediate U.S. Govemment/Credit 0.00 100.00 100.00 0.00 N/A 0.4G L00 1.54 Page 24 of 27 ~~ THE BOGDAHN `.... GROUP Tequesta General Employees' Benchmark History As of June 30, 2009 Page 25 of 27 BOGDAHN GROUP Statistics Definitions Page 2G of 27 Statistics Description Return -- 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 svstematic risk. R-Squared -The percentage of a portfolio's performance explained by the behavior of the appropriate benchmark. High R-Square means a higher con•elation of the portfolio's performance to the appropriate benchmark. Treynor Ratio -- Similar to Sharpe ratio, bttt 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 trait 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 perfornance relative to the performance of an appropriate market benchmark. Inforn~ation 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 behveen the managers return and the risk-free return over a specited 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. Up Market Capture -- The ratio of average portfolio return over the benchmark during periods of positive benchmark rehirn. Higher values indicate better product performance. Down 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. i ~~ ~ THE ~ BOGDAHN l GROUP Village of Tequesta General Employees' Retirement Plan Compliance Checklist as of June 30, 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. / j E 3. The quality of the fixed portfolio was investment grade or better / i 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. / / / / / / / / ~~ THE BOGDAHN `.. ,f GROUP Statistics Definitions Statistics Description Return -- 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. uared -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. for 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. nside 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. :ing Error -- A measure of the standard deviation of a portfolio's performance relative to the performance of an appropriate market benchmark. ation 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. :ency -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. Return -- Arithmetic difference between the managers return and the risk-free return over a specified time period. Return -Arithmetic difference between the managers return and the benchmark return over a specified time period. Risk -- A measure of the standard deviation of a portfolio's performance relative to the risk free return. Page 26 of 27 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. ~~•~ THE BOGDAHN `' ~ ~ GROUP VILLAGE OF TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND Investment Performance Attribution Supplement ~~• . . .. Key elements of equity manager attribution are as follows: Note to analvsis: We used Thomson Portfolio Analytics for the holdings-based ath•ibution analysis, which is 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. TI7e analysis does not reflect the impact of cash, flows or management fees,, actual portfolio retaerns may differ. 0 0 Based on the holdings-based attribution we ran using Thomson Portfolio Analytics, the Dana total equity portfolio (excluding cash) trailed the S&P 500 Index by 136 basis points (+14.58% vs. +15.94%). At the end of Q2, there were l07 securities in Dana's total equity portfolio. Approximately 61% 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 ($41.7 B vs. $70.9 B). The portfolio continues to exhibit both growth and value characteristics, which common for a core style. On the growth side, the dividend yield was less than the index, the price-to- book ratio was slightly greater than the index, and the 5-year historical EPS growth rate was greater than the index (22 vs. 13). On the value side, the trailing twelve month price-to-earnings ratio was significantly less than the index (17.1 vs.47.5) and the twelve-month forward EPS growth was less than the S&P 500 Index (12.3 vs. 13.9). Dana's focus on "quality" companies is represented with a lower total debt-to-equity ratio (0.93 vs. 1.71) and a higher return on equity (24.3 vs. 19.4) relative to the benchmark S&P 500 Index Another characteristic used to describe a "quality" company is earnings consistency. Based on the EPS Instability Historical SY Score provide in the table on the right below, the companies in the Dana. equity portfolio have had more consistent earnings over the last five years relative to the companies in the index (23.8 vs. 25.5). Total: 23.90 Market Cap -Median 22.000,941.310.00 __ 6.842.429.200.00 Div Yld 2.09 2.35 EPS Gr Hst 12M -24.28 -72.86 EPS Gr For 12M 1.56 6.39 EPS Gr Hst 5Y 22.00 13.03 Ret Eq _24 25 19.35 PE Tr 12M . 17 09 _- 47.50 PE For 12M 1225 13.91 PEG For 12M 1..13 1.44 Price /Book 1.99 1.96 Relative Beta (GRM) -0.04 -0.01 Relative Growth (GRM) 0.12 -0.06 Relative Momentum (GRM) -0.11 -021 Relative Size (GRM) 0.07 0.39 _ Relative Value (GRM) 0.02 0.02 Ttl Dbt/ Eqty WS 0.93 1.T1 EPS Instb Hst 5Y Score 23.79 25.50 Sector Name Total Portfolio I Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financiais Information Technology Telecomm 5etvice Utilities Iv jA Avg Port Port Avg Bmrk Bmrk Alloc Select Total Port Wt Return Contrib Bmrk Wt Return Contrib Effect Effect Effect lOUAU 14.58 14.58 1OU.GO 15.94 15.94 0.27 -1.62 -1.36 9.39 15.67 1.47 12.88 10.70 1.41 ~ ~ [1.71 6.16 28.31 1.61 3.31 16.27 11.54 ti,i11 ~ {1.74 lt1.26 23.96 2.31 1U.21 18.89 1.88 -O,U2 ~ O.SU 9.87 3.t)Ct 0.35 9.09 18.20 1.64 O.U8 -L66 -1.58 11.99 11.62 1.42 12.11 9.81 1.23 0.03 l~ 0.25 12.31 4.42 01.52 13.93 8.88 1.26 ~ -U,62 -01.46 9.84 26.23 2.3C) 12.83 35.71 3.89 -tJ.42 -U.88 -1.3U 21.11 17.201 3.61 18.02 19.72 3.52 ~ -U.53 -0.40 3.86 4.61 0.19 3.62 3.41 0.15 -U.US 0.03 -O.U2 3.29 11.61 U.4U 4.t1t1 1t),18 U.42 tI,U6 U.[16 ti.12 1.93 21.31 0.39 0.00 O.OU 0.00 0.10 U.UO 0.1[1 At the sector level, all of the relative underperformance was attributable to poor stock selection. Stock selection with the Consumer Discretionary, Health Care, Financials, and Information Technology detracted from the relative performance. On a positive note, the stock selections within the Energy, Materials, and Industrials positively contributed to relative performance versus the index. Top Contributors Company Name Return Contrib Compan~fVame __ _ _ __ _ _____ Return Contrib APPLE INC 35.49 0,64 GAMESTOP CORP NEW -21.45 -4.34 GENERAL DYNAMICS ODRP 35.26 0.52 CEPHALON INC -14.38 -4.11 MICROSOFT CORP 30.22 0.47 S'VAL MART STORES INC -6.52 -4.10 }tT0 fNERGY INC 24.97 0.42 BROADRIDGE FINL SOLUTI -14.55 -fr.49 UNION PAC CORF 27.39 0.41 PANfRA t3READ CO -14.91 -0.47 Total: 2.47 Total: -0.71 VILLAGE OF TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND Investment Performance Attribution Supplement Key elements of equity manager attribution are as follows: Note to analvsis: We used Thomson Portfolio Analytics for the holdings-based attribution analysis, which is 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. T/ae analysis does not reflect the impact of cash,flows or management fees; actua/portfolio returns may differ. 0 0 Based on the holdings-based attribution we ran using Thomson Portfolio Analytics, the Dana total equity portfolio (excluding cash) bailed the S&P 500 Index by 136 basis points (+14.58% vs. +15.94%). At the end of Q2, there were 107 securities in Dana's total equity portfolio. Approximately 61% 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 ($41..7 B vs. $70.9 B). The portfolio continues to exhibit both growth and value characteristics, which common for a core style. On the growth side, the dividend yield was less than the index, the price-to- book ratio was slightly greater than the index, and the 5-year historical EPS growth rate was greater than the index (22 vs. 13). On the value side, the trailing twelve month price-to-earnings ratio was significantly less than the index (17.1 vs.47.5) and the twelve-month forward EPS growth was less than the S&P 500 Index (12.3 vs. 13.9). Dana's focus on "quality" companies is represented with a lower total debt-to-equity ratio (0.93 vs. 1.71) and a higher return on equity (24.3 vs. 19.4) relative to the benchmark S&P 500 Index Another characteristic used to describe a "quality" company is earnings consistency. Based on the EPS Instability Historical SY Score provide in the table on the right below, the companies in the Dana equity portfolio have had more consistent earnings over the last five years relative to the companies in the index (23.8 vs. 25.5). (SHARES Russell 1000 G ETF APPLE INC (SHARES EAFE Growth Index ETF MICROSOFT CORP ---- - HEti"JLETT PA.CKARD CO 17.54 1 71 1.5_1 otal: 23.90 Mkt Cap Market Div Yld EPS Gr EPS Gr _EPS Gr Ret Eq PE Tr 1 PE For PEG Fo Price !B Relative Relative Relative Relative Relative Ttl Dbt! EPS Ins ap -Median 22,000.941.310.00 6.842.429.20.0 00 209 2 35 Hst 12M -2428 86 -72 For 12M t56 . 6 39 Hst 5Y 22.00 13.03 2425 __ _ 19 35 __ M 17.09': -_ -- 47.50 2M 12.26'. 13.91 ~ r 12M 1 13 . 1~ - - ook 1.99' -- _ 1.96.. Beta (GRM) _ -0 04 -0.01' Growth (GRM) 0.12 -0.06 Momentum (GRM ) -0.11 -Q21' _ Size (GRM) 0.07 0 39' Value (GRM) 0.02 0.02 _ Eqty b'VS 0.93 1.71 _ tb Hst 5Y Score 23.79 C _ 2 1 25.50 LargestHal~in+yls Y; ,~ , '' ~ N, BestPerEornaaers u - 1l~crrstPerfamlers s ,~;~ , :ompany Name _ __ __ _ _____ ___ ___ ___ _. Avg Wt _Return Company Name __, Avg_Wt _ _ _ . Return Company Name Avg Wt ..Return APPLE INC 2..00 35.49 DANSKE SK Aj5 0.62 104.83 GAMESTOP CORP NEW 1.% -21,45 ISHARES TR 1.93 21.31 AEGON N V 0.% 60.42 PNC FINL SVCS GROUP IN 0.15 -14,8': HE1^iLET-r PACKARD CD 1.73 20.81 CEMEX 5A8 DE CV 0.82 55.42 CfPHALON INC 0.46 -14.38 CI~CC SYS IP~C 1.71 11.15 P.ACTPJ CORD 0.50 48.73 PANERA BREa.D CO 0.66 -10,81 C~ACLE CORP 1.70 18,p5 'JP.LMONT INCS INC 0.77 43.87 BROADRICGE FINL SOLUTI 0.76 -10,55 Avg Avg Port Bmrk Port Bmrk Alloc Select Total Sector Name UESTA GE (TTL E / SP500 DANA-TE TY Port Wt _ _. I 100 00 Bmrk Wt 100 00 Return 14 58 Return 94 15 Contrib 14 58 Contrib 15 94 Effect 24 2 Effect 60 -3 Effect -1 36 Q Q ) MktCap less than $26i1 . 4.44 . 0.76 . 19.78 . 42.11 . 0.89 . (-.40 . ~ . -Lfi7 . -O.C19 MktCap bt~r $26 and 5106 21.32 16.37 13.98 24.4tt 3.54 4.26 ~ -2.36 -1.8[1 MktCap btt~r $10B and $2178 18.51 17.(:11 15.79 18.11 3.[16 3.18 O.C~3 -0.56 -0.53 MktCap btW $ZClB and $2008 54.33 6[).75 14.018 13.48 7.ty4 7.89 ~ n.35 0).58 MktCap greater than $2008 1.4n 5.12 7.n8 5.46 01.06 x).20 ~ 0.05 0.49 The portfolio's market cap allocation benefited performance; the overall "allocation effect" was + 224 bps. A significant overweight to small capitalization companies (less than $2 billion) contributed the most during the quarter (+98bps). Avg Avg Port Bmrk Port Bmrk Allac Select Total Port Wt Bmrk Wt Return Reh~rn Contrib Contrib Effect Effect Effect Asia & Pacific Basin 3.72 0.25 14.34 31.49 0.60 0.07 i -0.93 -0.09 6~rope 8.38 0.08 26.76 29.42 2.08 0.02 ~ -0.71 0.89 Latin America 1.87 0.00 34.67 0.00 0.57 0.00 OAO 0.33 North .America 66A3 99.66 13.09 15.89 11.34 15.84 0.01 -2.49 -2.48 Non-US exposure added about 280 bps relative to the benchmark S&P 500. 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