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HomeMy WebLinkAboutDocumentation_Pension General_Tab 03_09/30/2009Village of Tequesta General Employees' Pension Plan Quarterly Review 3rd Quarter 2009 THE BOGDAHN .~ CROUP simplifying your iuaesrnleut Rud frducirrry deeisi~as No Text The Market Environment Major Market Index Performance Period Ended: September 30, 2009 ^ Both equity and fixed income markets posted strong results for the quarter ended September 30, 2009. However, evidence of the recent financial crisis is still very visible in the 1-year performance of the domestic equity indices. ^ Outside of the United States, emerging markets once again outpaced developed markets during the quarter. While the performance differential for the quarter is small (+1.5%), the 1-year differential of +15.6% is substantial. ^ Domestic smaller capitalization issues, represented by the Russell 2000 (+19.3%) and Russell MidCap (+20.6%) indices, respectively, exceeded large cap issues for the quarter. However, the dominance of small and midcap indices reflected in the 3rd quarter performance diverges over the 1-year period. During this timeframe, the Russell 2000 posted the weakest domestic equity index performance (-9.5%) while the Russell MidCap index posted the strongest (-3.5%) relative result. ^ The Barclays aggregate return of +3.7% for the quarter was dominated by the continued recovery in credit as the Barclays Corporate Investment Grade index returned an impressive +8.1%. For the trailing 1-year period, the Barclays Aggregate posted a strong +10.6% return, which easily outpaced the majority of both domestic and international equity indices. MSCI ACWxUS MSCIEAFE MSCI Emerg. Mkts. S8P 500 Russell 3000 Russel 11000 Russell MidCap Russell 2000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill MSCI ACWxUS MSCIEAFE MSCI Emerg. Mkts. SS~P 500 Russell 3000 Russell 1000 Russell MidCap Russel 12000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill Quarter Performance 19.8 1s.s% zto% 15.6 16.3 1s.1 % zo.s % 19.3 3,7 z.o % 2.3 % i e.1 % o.o % o.o°io s.o°i° io.o°r° ~s.o°r° 2o.o°i° 2s.o°i° One Year Performance -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 6.4 3.6 9.4 % ~.9 -6.a % -6.1 3.5 -9.5 10.6 6.7 9,9 z1s% 0.4 % Source: Barclays Capital, MSCI Capital Markets. Russell Investments ~~ THF. 1 BOGDAHN `' GROUP The Market Environment Major Market Index Performance Period Ended: September 30, 2009 One Year Performance i Three Year Performance MSCIACWxUS 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 MSCIACWxUS MSCI EAFE MSCI Emerg. Mkts. S8P 500 Russel 13000 Russell 1000 Russell MidCap Russel 12000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Five Year Annualized Performance ~ Ten Year Annualized Performance MSCI EAFE MSCI Emerg. Mkts. S8P 500 Russel 13000 Russel 11000 Russell MidCap Russel 12000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG MSCI EAFE MSCI Emerg. Mkts. 3.0 11.7 -0.2 % o.~ % o.a% 6.0 a.s % 6.3 6.2 s.a % 6.4 3.0 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 C.0% 5.0% 10.0% 15.0% 20.0% -5.0% Source: MSCI Capital Markets. Russell Investments, Barclays Capital & Bogdahn Consulting, LLC. 2 3mos. T-Bill 0.0% 5.0% 10.0% 15.0% The Market Environment Domestic Equity Style Index Performance Period Ended: September 30, 2009 ^ Led by the continued recovery in financial issues, value indices outpaced their growth counterparts by 5.4% on average for the 3rd quarter. The financial sector, which represented more than 25% of each of the Russell value indices at the end of the quarter, was the largest contributor to value index outperformance. ^ The 5.4% average differential between value and growth index results for the 3rd quarter were much larger than the 1.5% average experienced between the style indices during the 2nd quarter. However, regardless of a portfolio's particular style allocation, much like last quarter, the 3rd quarter's domestic equity performance represented a welcome relief to portfolios that continue to rebuild from a historically difficult period for long-term investors. 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCaplndex MidCap Growth 2000 Value 2000 Index 2000 Growth Quarter Performance I One Year Performance I ^ The strength of value indices that is evident in the 3rd quarter's results disappears and reverses in the 1-year performance of the value benchmarks. This weakness in the 1-year results is the impact of the market crisis, particularly in the financial sector, and is visible across the capitalization spectrum in the value index returns. 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCaplndex MidCap Growth 2000 Value 20001ndex 2000 Growth -1o.e -6.4 -2.2 •1 o.s % -6.1 -1.9 •7.1 -3.5 -o.a % -12.6 -s.s % -6.3 -20.0% -15.0% -10.0% -5.0% 0.0% Source: Russell Investments ~~ THE 3 ~ BOGDAHN GROUP 0.0% 5.0% 10.0% 15.0°/ 20.0% 25.0% 30.0% The Market Environment GICS Sector Performance & (Quarter-End Sector Weight) Period Ended: September 30, 2009 ^ Large cap stock performance was positive across all ten GICS (global industry classification standard) sectors with five of the index's ten sectors outpacing the +16.1 return of tfle Russell 1000. ^ The financial sector returned of +24.9% for the quarter, which was the strongest sector of the Russell 1000 index. This was the second consecutive quarter of top performance for the financial sector, which is now up more than 50% over the last 6-months. However, the financial sector's steep decline is still evident in the 1- yearsector performance of -22.3%. ^ The strength of 3rd quarter returns in the consumer discretionary (+20.5%) and information technology (+17.2%) sectors were enough to push the trailing 1-year results of both sectors into positive territory. ^ Small cap stock performance was also positive across all ten GICS sectors with the energy (+27.9%), materials (+36.1 %) and consumer discretionary (+26.4%) sectors finishing well ahead of the +19.3% return of the Russell 2000 index. ^ The combination of a strong 3rd quarter of 2009 being added and a weak 3rd quarter of 2008 falling off resulted in the performance of the materials (+5.0%) and information technology (+9.1 %) sectors of the Russell 2000 index turning positive for the 1-year period. Source: Thompson Financial a ^~TR D1-Year I' Energy (11.3%) Materials (4.0%) Industrials (10.4%) Consumer Disc (10.0%) Consumer Staples (10.7%) Health Care (12.9%) Financials (15.3%) Info Technology (18.4%) Telecom Services (3.1%) Utilities (3.9%) Russell 1000 ~ 11.3 % 22.1 % 21.7 % 20.5 t.t % - 11.a^^/ - 9.8 24.9 17.2% 8.9 6,6% -~ s ~ % -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% ^~TR Russe112000 o1-Year Energy (4.9%) Materials (4.4%) Industrials (15.8%) Consumer Disc (13.8%) Consumer Staples (3.3%) Health Care (14.3%) Financials (19.8%) Info Technology (19.3%) Telecom Services (1.2%) Utilities (3.2%) 27.9 -32.6 3s.1% 5.0 % 7.8 % -15.9 26.4 -1.a % 11.7 % -z.z % 13.7 -5.a % 18.1 -23.5 20.3 9.1 8.5 -11.0 % 7.0 % -7.3 % -50.0% -30.0% -10.0% 10.0% 30.0% ~~ THE BOGDAHN GROUP The Market Environment Quality Rankings* Breakdown by Weight and Quarterly Performance Period Ended: September 30, 2009 ^ Within the Russell 1000 index, the performance by each of the quality segments was more equally distributed than the 2nd quarter where lower quality issues dominated performance. The only rating segment of the index to show noticeably weaker results than the broad index return of +16.1 % during the current quarter was stocks in the "A-" category, which returned +9.2% . ^ Unlike the large cap index, the "performance by quality" of the small cap Russell 2000 index continued to be led by lower quality issues. Stocks rated "C" and "D" within the index returned +30.7% and +75.7% ,respectively, for the 3rd quarter. ,~, ~ ~.~ A+ l 10.4% 17.9% A 10.5% 14.9% A- 14.7% 9.2% g+ 17.3% 18.1% B 5.8% 19.4% B- 28.4% 16.7% C 2.1% 16.3% D 0.0% 0.0% Not Rated 10.8% 18.3% N/A iee 0.0% ~~ ~', -13.9% ~~~ . A+ _ 3.1% 12.4% A 5.1% 13.9% A- 0.8% 12.7% B+ 17.8% 18.0% B 20.2% 22.3% B- 12.3% 14.3% C 10.7% 30.7% D 0.1% 75.7% Not Rated 29.3% 17.7% N/A .., ~ 0.6% „ ~ 26.9% Quality Rankings Table Highest ~ High I Above Average ~ Average I Below Average ~ Lower I Lowest ~ In Reorganization 'Standard and Poor's rankings are generated by a computerized system and are based on per-share earnings and dividend records of the most recent 10 years. -October 2005 report Source: Thompson Financial ~ TFIF. 5 ~ BOGDAHN GROUT The Market Environment International and Regional Market Index Performance (# Countries) Period Ended: September 30, 2009 ^ As the United States tries to bolster the domestic economy through its various stimulus programs, the value of the USD (U.S. dollars) continues to weaken across the globe. This USD depreciation is evident in the performance differentials of both the broad (EAFE: 4.6%) and regional segments (Pacific: 7.8%) of the international indices. ^ International Markets posted strong results for the 3ra quarter, 2009 in both local currency and USD. The MSCI-EAFE (Europe, Australasia & Far East), which represents the world's 21 developed markets (excluding Canada), returned +19.5% in USD (+14.9% local). The MSCI-EM (22 emerging market countries) returned a stronger +21.0% in USD (+16.9% local). As a result, 3ra quarter results of international portfolios with emerging market holdings should benefit relative to those with holdings limited to developed market countries. ^ The "one-sided" currency effect that is clearly visible in the 3ra quarter's results is not as linear when reviewing the 1-year performance. In fact, the European region of the developed markets actually show dollar strength in the 1-year period with a return of +2.3% in USD vs. +2.7% in local currency. ^QTR (USD) ^QTR (Local) Ac worts x us (44) WORLD x US (22) EAFE (21) Europe (16) Pacific (5) Emerging Mkt (22) EM Europe (5) EM Asia (8) EM Latin Amer (7) Frontier(25) Quarter Performance 1 s.o°io 17.1% i 17.6% 15.0% ' 19s% 14.9% 23;0 20.3% 13.2% 5.4% 21.0% 16.9% 29.4% 24.0% 19.8 16.9 % 24.8% ! n. s °io 1 o.s°io 10.5 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% ^1-Year (USD) ^ 1-Year (Local) Ac worts x us (44) WORLD x US (22) EAFE (21) Europe(16) Pacific (5) Emerging Mkt (22) EM Europe (5) EM Asia (8) EM Latin Amer (7) Frontier (25) Source' MSi;I C~apltal Markets s One-Year Performance -1.8°/ -2.1 % -1.6% I -3.9% 3.8°~ -1.2% 2.3 % ! 2.7% T.1 -7.3% 19.4% 1 s. s% -8.4 % -6.6% 28.1 27.9% 19.8 18.4 -26.8% -21.6° -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% ~~ Ttit-: BOGDAHN GROUP The Market Environment Country Index Performance in U.S. Dollars Period Ended: September 30, 2009 .Quarter Developed MarketCountries ^ 1-Year USA -6 7 % Canada 0 Singapore New Zealand Japan -0.4°/ Hong Kong Australia United Kingdom -1.3% Switzerland Sweden Spain Portugal Norway -2.6% Netherlands Italy Ireland _30.7% Greece -a.7% Germany -2 0 France Finland -6.7% Denmark Belgium -1.7% Austria -8.9% ~ 15.6% _ 18.5% 19.4% 16.9 25.8% 15.4° 6.6% 14 4° 25.6° 33.2° 23.6% _ 18.5% - 22.7% i.7% 2$.4% 19.9% 27.5% 1 s.o°io 2o.2°i° 11.0° - 26.5% - 31.3% ~.2% - 27.1% 0 - 19.3% - 32.8% _ 23.2% - 26.7% 12.8% 18.0% - 28.8% - 29.2% -50.0% -30.0% -10.0% Source: MSCI Capital Markets ^ Quarter Developing MarketCountries 01-Year 1 d'.4°/ South Africa 20.8% Morocco -6.6% -10.9 /o 22.6% E9YPt 1.1°/ 32.$% Turkey 1318% 1 Russia 27.1%', X9.7% Poland 341.4% i -23.1 Israel 10.4% 6.7% I 42.0% Hungary -8.5% Czech Republic ° 23.0% -5.6 /o Peru 44.0% 44.2% '~ 18.1 Mexico _3.6% Colombia 3 9 /° o 53:5 Chile 20.1% Brazil 27.5% 27.1 Thailand 20'0% 28.4%! Taiwan 23.2% ° 27.1 /o 15.2% Philippines 13.7% Malaysia 1 .8%23.8% I 341,.5% Korea 23 6% Indonesia 38.1% ° 43.7 /o India 19.6% 32.0% China 7.9 /° o 32.5 /o -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% ~~ THe 7 ` BOGDAHN GROUP The Market Environment Domestic Credit Sector & Broad Market Maturity Performance Period Ended: September 30, 2009 ^ Much like the 2nd quarter, the broad market index results, which consist of government, mortgage-backed and corporate securities, mask a much wider performance disparity within the fixed income market's three segments. ^ Government (+2.0%) and mortgage-backed (+2.3%) results were relatively mild, but positive for the quarter. In contrast, corporate issues in all quality segments posted stronger results that were more than double the performance of the government or mortgage-backed sectors for the quarter. The outsized 1-year performance of the corporate indices, particularly high yield, are a function of the strong 3rd quarter 2009 results that were added (+14.8%) and weak 3rd quarter 2008 results (- 9.5%) that were dropped from the trailing calculation. ^ Although the 1-year performance of the fixed income indices in the graph appear to make a strong argument for both lower quality (+22.4%) and longer maturity (+17.4%) issues within a fixed income portfolio, one must consider where we were just 1-year ago. Memories of the volatility and fear associated with the recent crisis should remind investors that such "black and white" conclusions are rarely beneficial to long-term investors. While it is clear that fixed income investors with an appetite for risk have benefited over the last year, the performance of lower quality issues tends to be very cyclical. Source: Merrill Lynch Index System AAA AA A BBB <ssg Govt Mort 1-3yr GIMIC 1-Syr G/M/C 1-10yr G/M/C 10+yrG/M/C AAA AA A Bss <ses Govt Mort 1-3yr. 1-5yr. 1-10yr. 1 o+yr. Quarter Performance ~ z.o % - 2.3 G/M/C =Broad Market (Government + Mortgage + Corporate) ^ i.6% ~ 2.2 % z.s% 8.3 0.0% 5.0% One Year Performance 6.7 7.0% 10.0% 15.0% 20.0% 10.8 -~ 15.5 _., _. 19.5° 22.1 % . --- ... 22.4% 9.7 % 8.1 7.4 % 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% ~~ 11ii. a ~ BOGDAHN GROUP The Market Environment Market Rate & Yield Curve Comparison Period Ended: September 30, 2009 2009 Market Rates ^ The Fed left rates unchanged during the quarter as economic conditions, although still quite weak, continued to improve. The Fed also continued to reassure market participants that economic conditions would likely warrant exceptionally low rates for an extended period of time. ^ As a result of the general stability of the financial markets during the quarter, many of the market's spread levels and "fear" gauges continued to contract from historically wide levels. ^ The Treasury yield curve declined moderately across the maturity spectrum during the third quarter. The benchmark 10-year Treasury finished the quarter with a yield of 3.31 %. This yield represented a decline of 22 basis points from the yield at the end of the 2nd quarter (3.53%). ^ The last day of the 3rd quarter marked the start of the much anticipated PPIP (Pubic-Private Investment Program). The program to purchase the legacy (troubled) mortgage-backed assets of banks started with an initial value of $4.5 billion, 25% of which came from private investors. ~.oo s.oo s.oo a. o0 3.00 2.00 1.00 6.00 5.00 a. o0 3.00 2. o0 1.00 o.oo ~ Fed Funds Rate -TED Spread -3-Month Libor -BAA/10yrSpread -10yrTreasury ---10yrTIPs o, o0 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Treasury Yield Curve Aug-09 Sep-09 112/31/2008 -~-3/31/2009 i 6/30/2009 -X9/30/2009 ~ ^ 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Source: Mortgage-X.com , US Department of Treasury & St. Louis Fed ~~ THE: 9 BOGDAHN GROUP The Market Environment Assessing the Impact of the S&P 500 Decline & the "Cruelty of Math" Period Ended: September 30, 2009 SPX (S&P 500) Index Level VIX Index Level ^ The SPX Index measures the daily price change in the 1600 ,oo S&P 500 (excluding dividends). The CBOE Volatility Index (VIX) is a measure of market expectations of near- term volatility conveyed by S&P 500 stock index option prices. It acts as a barometer of investor sentiment and market volatility. ^ After reaching a peak of 1,565.15 on 10/9/07, the SPX fell to a low of 676.53 on 3/9/09. This drop of 888 points on the index represented a loss of 56.8% from its peak. This decline, particularly as the financial crisis reached its crescendo, included a significant increase in market volatility as measured by the VIX. ^ From the 676.53 low on 3/9/09, the SPX index rose to 1,057.08 by the close of the 3~d quarter. This 380 point gain from the low represented a return of 56.3%. As would be expected, this equity market gain was coupled with a reduction in investor pessimism as the VIX decreased to a more historical level. ^ Despite a more than 50% gain since its low, the index remains 580 points or 48.1 % below its peak level. We call this phenomenon the "cruelty of math" in that a drop of 50% in value requires a gain of 100% to reach its original level. 1, 500 1,aoo 1.300 1.zoo 1,100 1,000 900 soo 700 soa s0% so°i° ao°i° 30% 20°i° 10% ^ In order to put the magnitude of the market's decline in perspective, the lower table illustrates the annualized °°'° return that the SPX will be required to post from its 9/30/09 level to the previous peak of 1,565.15. Annualized SPX return required to reach 10/9/07 index peak 21.7 % ~a.o°r° 10.3 8.2 % 6.8 5.8% 5.0% 4.5% 4.0% a` c5 h ~5 c5 ~5 ~5 ~5 c5 ~e 1a Aaa Aea Aaa yza ~aa pia Aea ~aa Aaa ~ `l% '~' b' S' 6' 1' 4i 0' ,~O 90 so 70 so s0 1,057.08 40 30 20 10 0 Source.' Yahoo finance. CBOE ~~ 7~t1F ~~ ~ BOGDAHN GROUP 0 The Market Environment How Quickly Can the Economy Recover from a Recession? Period Ended: September 30, 2009 ^ The Gross Domestic Product (GDP) of the United States is measured by the combination of personal consumption expenditures, gross private (business) investment, government consumption expenditures & investment and net exports. While the National Bureau of Economic Research (NBER) defines the official beginning and end of an economic recession* based on several factors, a recessionary period is commonly defined as two consecutive quarters of negative GDP growth. ^ The decline in housing values, the tightening of consumer credit conditions, the reduction in household wealth, and a deteriorating employment outlook have all combined to cause a reduction in personal consumption. ^ While the Government can provide temporary boost to GDP through various relief programs or direct stimulus, it is clear than personal consumption (70.7%) is the main driver of economic growth. ^ Although the NBER has not declared the recession officially over, many experts, including Fed chairman Bernanke, have stated that the current recession has passed. However, given the length and magnitude of this recession, combined with high unemployment, low capacity utilization and various other factors, it is likely that the ultimate recovery in economic growth will be measured. 'In December of 2008, the NBER officially declared that the current recession began in December of 2007. 16,000 1 a, o00 12,000 10.000 s,ooo s, o00 a.ooo 2, 000 0 -2. o00 10.0 s.o s.o 4.0 2.0 o.o -2.0 -a.o -s.o -a.o Q2-2009- Total GDP and its components ($Billions) $14,151.2 $9,999.3 $2,929.4 $1,561.5 -2.4% 70.7% 11.0% -$' 20.7% Gross domestic Personal Gross private Net exports of Government product (GDP) consumption domestic goods and consumption expenditures investment services expenditures and gross investment Quarterly GDP percent change 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Bureau of Economic Analysis ~ TFiE „ ` BOGDAHN GROUP Total Fund September 30, 2009 iii ~ ~ ~ June 30, 2009: $1,121,764 September 30, 2009: $1,265,195 Segments Market Value Allocation Segments Market Value Allocation ($) ("/~) ~$) (%) ^ Equity 661,084 52.3 ^ Equity 598,286 53.3 D International Equity 93,496 7.4 ~ Fixed Income 490.459 43.7 ^ Fixed Income 433,864 34.3 ^ Cash Equivalent 33,018 2.9 ^ Cash Equivalent 76,750 6.1 12 ~~ BOGDAHN GROUP Total Fund September 30, 2009 June 30, 2009: $1,121,764 ^ Dana Balanced Portfolio ^ R&D Market Value Allocation ~$) ~%) I , l 1 1,782 99.1 9,981 0.9 September 30, 2009: $1,265,195 Market Value Allocation ~$) ~ %) ^ Dana Balanced Portfolio 1,157,325 91.5 Dana International Equity 95,998 7.6 ^ R&D 11,872 0.9 13 ~~ BOGDAHN GROUP Tequesta General Employees' Asset Allocation As of September 30, 2009 Asset Allocation R& D Dana International Equity Dana Balanced Portfolio Total Fund 3,465 0.33 1,057,361 99.67 1,060,825 100.00 2,239 0.22 I ,019,239 99.78 1,021,478 100.00 11,737 1.16 1,001,364 98.84 1,013,100 100.00 9,981 0.89 1,111,782 99.11 1,121,764 100.00 11,872 0.94 95,998 7.59 1,157,325 91.47 1,265,195 100.00 14 ~~ BOGDAHN ® GROUP ntstortca~ asset auocanon tsy segment 100.0 80.0 o ~ 60.0 I o I •r. 40.0 Q I 20.0 0.0 1 9/08 10/08 II/08 12/08 1/09 2/09 3/09 4/09 5/09 6/09 7/09 8/09 9/09 Equity ~ Litemational F~luity ~ I~ixed Income ~ Cash Equivalent Tequesta General Employees' Financial Reconciliation As of September 30, 2009 Financial Reconciliation Dana Balanced Portfolio 1,111,782 -78,400 53,287 -13,000 -1,443 -871 7,635 78,336 1,157,325 R&D Account 9,981 -1,443 13,000 - - -9,666 - - 11,872 Dana International F,quity - 79,843 - - - - 143 16,012 95,998 Total Fund 1,121,764 - 66,287 -13,000 -1,443 -10,537 7,778 94,317 1,265,195 Financial Reconciliation FYTD Dana Balanced Portfolio ' I II; 1,057,361 -119,400 ~~ ~ ~ 227,439 t -13,000 -1,443 -12,815 31,231 -12,1148 I II 1,157,325 R&D Account 3,465 39,SS7 25,010 -46,483 - -9,676 - - 11,872 Dana International Equity - 79,843 - - - - 143 16,012 95.998 Total Fund 1,0611,82.5 - 252,449 -59,484 -1,443 -22,491 31,374 3,964 1,265,195 ~~ TsiE 15 ~ BOGDAHN GROUP Tequesta General Employees' Comparative Performance Trailing Returns As of September 30, 2009 Total Fund (Net) l~~~lal Fund I'~~licr Difference All Public Plans-Total Fund Median Total Fund (Gross) total I and folic. Total Fixed Raraih Internxdiutc t f.5_ (io~~crnment/Credit Difference US Intermediate Fixed Income (SA+CF) Median Dana Core Equity ti~P VIO Ditterencc i IS Core/Large Cap Equity (SA+CF) Median Dana Int'I Portfolio ti1~Cl 1..111 In~ir~ Difference International Core Equity (SA+CF) Median Dana Fized Income 13tu~r,ih Inicrmedi ilr l ~.ti. (~o~crnment/Credit Difference tIS Intermediate Fixed Income (SA+CF) Median 8.80 (89) 1.64 (44) 1.64 (44) 0.58 (38) 2.93 (21) 4.52 (21) 3.50 N/A 11/01/2000 I(L~r, 1-1~>> n l~ it,`) n.-IS I6'~ -0.19 1?I~ I.5-I 16(.1 ?.87 t761 _'.7i1 ~!y -1.76 1.16 1.16 1.07 1.39 1.65 0.80 ] 0.51 1.34 1.34 0.32 1.99 3.90 N/A 8.94 1.76 1.76 0.70 3.11 4.66 3.64 11/01/2000 1(I_i6 1148 IL48 -0.-19 1 ~-l 2.87 2.7U -1.62 1.28 1.28 1.19 1.57 1.79 0.94 2.93 (87) 9.24 (86) 9.24 (86) 6.30 (67) 5.53 (73) 4.71 (80) 4.58 N/A 02/01/2004 3?~ 17;1 10.01 18?1 10.(11 18?) (,.15 1711 ~ -19 17-41 1.68 1811 ~~1.~7 N ~ -0.32 -0.77 -0.77 0.15 0.04 0.03 0.11 3.90 11.54 11.54 6.70 5.99 5.20 N/A 13.29 (84) -8.19 (75) -8.19 (7.5) -4.88 (52) N/A N/A -1.04 N/A 11/01/2005 15.1,1 1?71 -1,,91 i?'1) -6.91 (~'~) -~_d? i?111 -1.61 (7111 1.02 f8;1 -I?? V'1 _2.32 -1.28 -1.28 0.55 N/A N/A 0.18 15.25 -6.48 -G.48 -4.78 -I.IS 2.02 N/A 20.56 (20) N/A N/A N/,~- N/A N/A 20.56 N/:1 07/01/2009 1~~5? 1;(>i ~.SO ~,1>1 ?.80 (4>i -±.12 uil ~.I± (641 6.>7 ~71r~ 19.>2 N'~ 1.04 N/A N/A N/A N/A N/A 1.04 18.87 3.11 3.11 -2.78 2.58 7.65 N/A 2.93 (87) 9.24 (8G) 9.24 (8G) G.30 (67) N/A N/A 5.83 N/A 11/01/2005 ?.?> IZ;1 10.01 (8'1 111,111 (8?1 6.15 lilt ,.-19 (7a1 -1.68 (811 x.76 N, ~ -0.32 -0.77 -0.77 0.15 N/A N/A 0.07 3.90 11.54 11.54 6.70 5.99 5.20 N/A Return, for periods greater t4~.an one year are annualized. Returns are expressed as percentages. Total Fund Policy= 60% SR P 500, cR 40% L[3 G/C [nterniediate. ~ THh: Dana's inception date is 10-I3-2005. Dana Core Equity contains international prior to 7/1/2009. ~ BOG~A111V 16 ~ 1 11 V GROUP Tequesta General Employees' Comparative Performance As of September 30, 2009 Total Fund (Net) 1.64 (44) -10.34 (9) 11.64 (91) 10.35 (42) 11.09 (88) 2.08 (100) 0.83 (100 Tw~il l=und I'~~lic~ U.-4S (6'-1 -13.~a6 I-ll) 13-03 1871 7.35 1561 5.37 1971 3.U3 IIUUI 1.3-4 1100 Difference 1.16 2.12 -0.38 2.47 2.72 0.05 -0.41 All Public Plans-Total Fund Median 1.34 -13.16 14.36 9.59 14.15 12.67 18.22 Total Fund (Gross) 1.76 -10.10 11.64 10.67 11.09 2.70 0.83 ~futal I~un~l Pulir~ U.-45 -13.6 13.03 7.55 8-37 3.113 I?4 Difference 1.28 2.36 -0.38 2.79 2.72 0.67 -0.41 Total Domestic Fixed 9.24 (86) 4.47 (28) 5.25 (72) 3.24 (100) 1.49 (93) N/A N/A B~ircap Intermedi~it~ t .~. (iu~cnuncnt (~redit lO.UI fS31 3.1 ~ (31) x.13 l~~l 3.3~ (9'_I l.-l5 (9jl 3.66 I(i(i) 6.00 1331 Difference -0.77 1.34 -0.18 -0.30 0.01 N/A N/A US Intermediate Fixed Income (SA+CF) Median 1 1.54 3.17 5.46 3.90 2.08 2.87 5.50 Dana Core Equity -8.19 (75) -19.68 (34) 16.70 (49) N/A N/A N/A N/A St~P SOU -6.91 1~9) -31.~~5 1641 16.-t-1 1>51 10.79 1;01 13.3 1511 13.87 (59} ~-1-40 i-131 Difference -1.28 2.30 0.26 N/A N/A N/A N/A US Core/Large Cap Equity (SA+CF) Median -6.48 -21.32 16.64 10.78 14.39 14.27 24.01 Dana Int'I Portfolio N/A N/A N!A N/A N/A N/A N/A MSC[ EAFE Index 3.80 (45) -30.13 (43) 25.38 (73) 19.65 (52) 26.32 (67) 22.52 (45) 26.54 (48) Difference N/A N/A N/A N/A N/A N/A N/A International Core Equity (SA+('F) Median 3.11 -30.59 26.97 19.73 27.63 21.50 26.06 Dana Fixed Income 9.24 (86) 4.47 (28) 5.25 (72) N/A N/A N/A N/A Barcap Int~rmcdiatc l .ti. (~~,~crnment (~rcdit 10.01 1.521 3.1 ; (~I1 3-43 Iii) ; 5-1 (921 1.-45 (9~) 3.66 (G(il G.00 (33) Difference -0.77 1.34 -0.18 N/A N/A N/A N/A US Intermediate Fixed Income (SA+CFI Median 11.54 3.17 5.46 3.90 2.08 2.87 5.50 Returns for periods erecter than one ycar arc annualized. Returns are expressed as percenlaees. Total Fund Policy= 60% S&P 500. & 40% LB Ci/C Intermediate. ~^ THE, Dana's inception date is 10-13-2005. Dana Core Equity contains international prior to 7/1/2009. ` BOG~AlZN 17 ~ rl GROUP Tequesta General Employees' Total Fund (Net) September 30, 2009 t ~ S1arket Value Vet Capital 1larket Value '~s °f 'Pransfers Contributions Distributions Fees Expenses Income ppprec/ Deprec. .~s of 6/30/2009 9/30/2009 Tnlal Fund INcU 1.123 - GG -13 -I -1 I R 94 1,265 Marke[ ~'alae Net C'~pital Market Value :1s of Transfers ~'on[ribations Distributions Fees Expenses Income Apprec./ Deprec As of 9/30/21108 9/3(1/211119 Total Fund (NeY1 LOCI - 352 -59 -I -22 31 4 L3G5 ;0.00 r 20.00 - luno ~~ E o Rio -. z -lo oo-~ -zo 00 ~'- - --' '- -- - ' - ' ~_ _ -! 1 Oct-20118 1 2 3 4 5 Quarter To \'ear Years Years fears ti'ears Sep-2009 ^ Tnlal Fund INotl R.RO (89) 1.64 (44) 1.64 (44) -4.s4 (20j O.SR 141) 2.93 121) 4.52 (23) ~ Tbtal Fund Policv 10,56 (491 0.48 (G2) 0 ~M1R (V2) -6?I IsR) -0.49 (75) 1.54 IG91 2.87 (78) SI500 $1400 $I3o.o $120.0 $110.0 $100.0 ~ 12/00 1s4a 12ss 9/02 6!04 ;/OG 12107 9/09 Median 10.51 1.34 134 -5.87 0.34 2.07 3.92 Total Fund (Nell --~ Tolal Fund Police 1 1 1 I 1 1 1 I I Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Jun-2009 star-2009 Dec-2008 tiep-2008 .lun-2008 ~1ar-2008 "Total Fund (Net) 5.86 (R9) -3.84 (18) -8.23 (7) -5,33 (9) -0.02 (271 -1.95 (47) Tolal 1~und Polic} 10.13 (371 -G.51 (721 -11.73 1371 -5.50 f 131 -212 (9G) -4.SG (31) :111 Public Plans=lbml Fund \ledian 9.42 -5.59 -12.45 -7.SG -0.74 -s.04 18 ~~ THF. BOGDAHN GROUP Tequesta General Employees' Total Fund (Net) September 30, 2009 2ao 0 00 ~~ -- - ^ ^ ~ Iz.o ~ zs.ou z ~ ~ a.o v so no ~ ~ ~ ~ ~ ~ ~ ~ • ~ -a.o ~ X9.00 ~ • z i -IZ.o F -zQ0 -20.0 l'o to l Fund Policy ('%. ) ~ Ocer Perfom>anee -fr Dec-20114 $ Sep-2009 t t R.00 - - -----. _. -- -- - - G.00 4.00 2.00 0 00 -2.001 -4.00 -~ ----- i -- 0 00 9.00 10.00 15.00 20.00 Risk (Stands rd Deviation'%,) Return Standard Deviation ^ Total Fund (Net) 058 2 (i6 • Total Fund Policy -0.49 12.04 - Median 034 12.05 :. z n A m ~' 10000 '. ~._ ------ - ---i - ~-r' "- -r 1~~04 ~ ~ ~ ~ I'ro~ 12/OG 12/07 12/08 9/09 't'otal Period 5-25 2S-Median D1edian-75 75-95 Count Count Count Count ^ Total Fiord (Net) 20 3 (l9`%) 7 (39°,0l 2 1 10 % 1 8 (40°~~) ~ Total Fund Policv 20 0 10°0l 1 (~°o) 4 120°al ]9 (7~°0l 1 1 - 9.00 - - __- - -_ - -_ - _ 750 v.oo 4.501 ~ 300 1.90 0.00 __ -_ -~ - -~ ~ -. - - __-_r 9 000 2.50 5.00 7.50 10.00 12,50 00 1 Rill: ISia nda rd Deviation '% ) Return Standard Deviation ^ Total Fund (Nell 4.52 R.19 • Total Fund Policv 2.R7 9.78 - Median 3.92 ~.~~ t Tracking I'p Down Sharpe Beta Downside Market Market 11 ha P IR Ratio Risk Error Captu rc Capture "total Fund INetl :.5' 39 33 7297 0.RG 0.23 -0-17 0.78 ? 73 Total Fund Policv 0.0[1 100.00 100-00 0.011 N'A -0? 1 1.00 9.55 1 Tracking 11p Down Sharpe Reta Downside Market Market Alpha IR Ratio Rick Error Captu rc Captive Total Fund [Nell 3.48 91.75 75.65 2.IG Q41 0.22 0.78 6.14 Total Fund Policv 0.00 100.00 100.00 0.00 N/A 0.03 I.00 7.91 ~~ BOGDAHN 19 GROUP -12.0 -4.0 40 12A 2011 Tequesta General Employees' Dana Core Equity September 30, 2009 .. t ~ Market Value Net Capital Market Value As of Transfers Contributions Distribufions Fees Expenses Income Apprec./ Deprec. As of 6/30/2009 9/30/2009 Dana Core Equity 1,112 -7R 53 -13 -I -I R 7R 1,157 Market Value Net Capital Market Value .4s of Transfers Contributions Distributions Fees Expenses Income .lpprec./ Deprec. .4s of 9/30/2008 9/30/2009 Dana Core Equity 1057 -119 227 -I3 -I -13 31 -12 1.157 30.00 20 ~0 - 10.00- 0.00- ®®, 5 -10.00- -20A0-~' -30.00 ~ ~ ~ ~ ~ 1 Oct-2008 1 2 3 i Quarter To fear Years Years Years Years Sep-2009 ^ Dana Core Equity 1 329 (84) -R.19 (75) -R.19 (75) -14.12 (53) -4.RR (52) N/A N/A ~ S$P 500 15.61 (371 -6.91 (59) -6.91 (59) -14.77 (69) -5.43 (701 -L61 (70) 1.02 (R3) $ 145.0 $1300 $ 115.0 $1(10.0 $R5.0 $70.0 $55 0 i:~ Median 15.35 -6.48 -6~1R -14.05 -4JR -I.IS 2.02 -Dana Core Equity S&P 500 t t ~ ' 1 1 1 1 1 I 1 Quarter Quarter Quarter Quarter Quarter Quarter Endin); Ending F,nding Ending Ending Ending Jun-2009 Mar-20(19 Dec-2008 Sep-2008 .lun-2008 Mar-2008 Dana Core Equity 14.19 (70) -R.59 (2R) -22.36 (6R) -9.R6 (65) 0.67 (211 -9.43 (47) S&V 500 15.93 (40) -11.01 (G9) -21.94 160) -R37 (4(11 -2.73 (82) -9.44 (49) US Core/Large Cap Equity ISA+CF) Median 15.52 -10.47 -21.67 -R.99 -1.19 -9.46 ~~ BOGDAHN 20 GROUP 12/05 9/06 G/07 3/08 12/08 9/09 so 00 -s.o - '`a -10.0- W - -u.o c ~ -2(1.0 -_ 0 0 ~ <)ver I'crFo mpnce ~ l'nder Perfbrnnuuc ~ Uec-2008 Tequesta General Employees' Dana Core Equity September 30, 2009 ,~ ~. o.oo ~¢ ticp-'_009 lulw 0 (lU _ -1000 c ~ _?000 z zs o0 A z ~ ~ ~ ~s not • ~ ~ ~ ~ • • ~ • ~ ~ • • ~ ~ ~ ~ '~: i I x 100.00 ~-r - - - r - - - -- r -- - - ---r i - ~ . 12/04 12/05 12/06 12/07 12 OS ~~09 Total Period 5-25 25-;V1etlian 1ledian-75 75-95 Cmmt Count ('punt Count ^ Dana (:ore Equip 4 0 (0°nl 2(>0%n) 2 1>0°a) 0 10°-0) ~ S&P s00 20 0 (0°0) (1 10"0l 13 IGS°ol 7 GS"col t t 15.00 --- - - -_- --- 10 00 s .00 ~ 0.00 -5.00 z -;0,(10 . - -_ 1 - __ __ f._-_~- (.. -10.00 ~. - _. - _--r---_ r.. _..__-_ -- -_.. ( _ _--r __ 0.00 10.00 20.00 30 00 1000 5.00 10.00 15.00 20 00 25.00 30.00 Risk (Standard Devia tion '%) Risk (Sta nda rd De~ia[ ion "/.~) Return Standard Deviation Return Standard Deviafion ^ Uana Corc Gquih~ -1.88 20.21 ^Uana Core Equity N-A )\;.A • S&P 5(10 -s A3 21.28 • S&P s00 1.02 17.43 - Median -4.78 21.18 -Median 2.02 17.37 1 "f racking Sharpe Downside F;rror Market Market Alpha 1R Ratio Beta Risk Caphve Capture Uana Curc Gquit~~ 3.61 ~)'.i5 9G-02 0.36 0.14 -0.31 0.96 15J9 sx~r So(1 0 0o i no uo l o0 ou n oo ~ :~ -n 33 1 0o i > x i t Tracking 6 D Sharpe Downside Errnr ~1a et arket :11pha 1R Ratio Reta Risk <'apturc Capture Dana Corel'.quuv A.:1 Art ~,A y:1 A';1 N/A \rA A,~ tiKp ip(1 0.00 100.00 1110.0(1 0 00 ~-:A -0 04 1.00 l2 45 ~~ Tt rn, ~, ~ BOGDAHN GROUP -I s 0 -10.0 -5.0 0.0 5.(1 S&P 5001'% ) zz Tequesta General Employees' Dana Int'1 September 30, 2009 .. t t ~ Market ~"aloe ~Tarket Value Net Capital As of As of Contributions Distributions Fees Expenses Income Apprec./ Deprec. G/30/2009 Transfers 9/30/2009 _ I (, 9G Dana Int'I - SU - - - - • , I ~ tt' II. t 't t• I II' ' Market ~'alne Capital Market Value 1c ot, Net Contributions Distributions Fees Expenses Income As of "Transfers lpprec/ Deprec• 9/30/2009 9/311/20UR Dann Intl - RO - - - - - IG 9G ~, ~ t t I I t $125.0 30.OU 1590-, ~ _ 090-. L ~i -15.00-~ -;0.00 1 Quarter ^ Dana Int'I 20.SG 120) • EAPF 19.52 (;G) S 1209 Oct-211118 1 2 3 To fear ~"ears fears ScIrZOl19 N/A N/A N/A N/A 3.80 (45) 3.R0 (45) -14.84 (43) -3.12 (541 Years Years N/A N/A 2.13 (64) G.57 (70) $100.0 Median 13.87 3.11 3.11 -15-G2 -2J8 2SR 7.65 -Danalnt'I -~•---EAFF. I t. t I 1 I I I l Quarter Quarter Quarter Quarter Quarter Quarter Ending Finding Ending Ending Ending Ending lun-ZIIII`) Mar-2009 Dec-2008 Sep-21108 Jun-2008 Mar-2008 Dana Int'1 N/A N/A N!A NG~ N/:1 N/A I:~V'l£ 25.R5 135) -13.85 (GS) -19.90 (411 -20 SU ('9) -1.93 IG81 -8.82 (49) International Core lr:quits ISA CTI Median 23.79 -13.09 -20.33 -21.88 -1.14 -8.87 ~~ BOGDAHN 23 GROUP G/09 9/09 Tequesta General Employees' Total Fixed Portfolio September 30, 2009 ~• t t~ ~ 1larket Value Net Capital Market ~~alue :1< of Transfers ('ontributions Distributions Fees Expenses Income ppprec./ Deprec. As of 6/30/2009 9/30/2009 Total Fixcd Portfolio 1.122 - G6 -13 -I -I I R 94 I CGS Slarkrt Value Market Value Net Capital `~~ of Transfers Contributions Distributions Fees Expenses Income ;~I~prec./ Deprec. :1s of 9/311/21108 9/311/211119 Total Fixcd Porttblio LObI - 252 -59 -I -22 31 4 L'_(5 0.00 ^ Total Filed Portfolio • Total Fixcd Palicv 1 Quarter 2.93 (971 3.25 (`1'-) Oct-2008 To Sep-2009 9.2d (91) 10.01 189) ~ --- ------I.__. _ i . 1.. I 2 3 J 5 Year fears Years Years Years 9.24 (91) (.83 (66) 6.30 (GS) 5.53 (71) 4.71 179j 10.01 189) GSI (74) G.IS (70) 5A9 (72) 490 (741 Median -1.80 12.54 12.54 7.62 G.73 6.00 5.40 8130.0 8120.0 8I 10.0 8 100.0 890.0 ~._ _ _.. --t--- ~ T- 3/04 G!OS 9/06 12/07 Total Fixed Portfolio --•-Total Fixed Policy 127 J ] 25.3 9.09 I I 1 1 1 I Quarter Quarter Quarter Quurter Qaarhr Quarter Ending Ending Ending Ending Ending Ending .tun-2009 Sl:v-2009 Dcc-2008 tiep-2008 .tun-211118 Star-211118 Total Fixed Portfolio -0.25 (100) 0.13 (64) 6.26 (14) 0.17 (10) -1.28 178) 2.93 (151 'total Pixcd Policy L67 18R1 -0.0> (721 4.84 (34) -1.19 (45) -L53 (89) 3.00 111) US Broad Market Core Fixed Income (SA+CF) Median 3.34 0.48 3.R3 -1-42 -0.95 2.02 ~~ TFU. 2a ~ BOGDAHN GROUP R.0 ~- Ovcr 7.0 ~ Pcrtixnuvi cc O ~ .` i 3.0 I 0 L F 10 ^^ Tequesta General Employees' Total Fixed Portfolio September 30, 2009 ,~ ~. s nnn ~- -- c 25.00 S ~i ^ c 50.00 ^ d 7- 3.0 5 0 Total Filed Policy ('% ) ~ ^ ^ ^` • • 7 ~ ~ ^ E ~.00- Under Y ~~ ~ ~ '. Pertbnruncc 100.00 -~ - , - -- r~~- ~ i i ~- ~ 12;04 12,05 12/06 f2'07 COx ~~ Oo 7.0 KO Total Period 5-25 25-Median Median-7S 75-95 Count Count Cmmt Count ^ Tolal Fred Po~Yfolio I1 2 (lR`%o) 2 (l8%1 3 127°-fil 4 136%) • Total Fixed Policy I I I (9"0l 3 (27) 5 (45%) 2 (18"io) ~ t ~ 750 G 00 J 50 . - ~ 3.00 - C f-UnderPerfornk~nce fOverPerfr:rntmce -Mar-2007 Sep-2009 t2oo R 00~ 690 4 UO ~ 2.00 5 0.00 0 on T ~ 2.50 5.00 7.50 10.00 Risk (Standard Deviation % ) Return Standard Deviation ~ 1.50 1- 12.50 2.00 ~ i i d 00 6.00 8.00 Risk(StandardDeviation %~) Return Standard Deviation L 0.00 ^ '1'o~nl Fixed Portfolio G.30 3.93 ^ Total Fixed PaYfolio 4.71 3.50 • Total Fixed Policv G.15 3.75 • Total Fixed Policy 4.90 3.G0 - Median 6.73 4.18 -Median 5.40 3.90 t ' Trackin g Up Down Sharpe B ta Downside Error 1larket ;1Farket Alpha IR Ratio e Risk Capture Capture Total Fixed Portfolio 1.51 89.65 SZ79 I?9 0.03 1.07 0.79 0.99 Total Fixed Police 0.00 100.00 100.OU O.UO N-A O.R9 1.00 1.68 1 ' 'T'racking (' p Down Sharpe Downside Error Market Market Alpha IR Ratio Bela Rick Capture Capture ibtal Fixed Portfolio L50 82.02 56.32 1.09 -0.14 0.60 OJ3 0.95 Total Fixed Policy 0.00 100.00 100.00 0.00 N/A 0.54 L00 1.G8 ~~ TFIF. 25 ~ BOGDAHN GROUP Tequesta General Employees' Dana's Fixed Portfolio September 30, 2009 ~ 1 1 Market Value As of 6!30/2009 Net ('ontributions Distributions Fees Transfers Expenses lncome Laprtal lpprec./ Ueprec' Market Value ps of 9/30/2009 Dan:isPisedPoi1folio 1.112 -7R Si -13 -I -I R 7R 1,157 ~ 1 1 ~ 1 1' ~ ~ i 1 1 1 ~ ~ ~~ Alarket Value Net Capital 1larket Value ~'s of Transfers Contributions Distributions Fees Expenses Income ppprec./ Deprec. As of 9!.30/2008 9/311/211119 Dana's Fixed Portfolio 1,057 -119 227 -13 -I -13 31 -I2 I,I57 1 1 11 1 1 ' 1 $ 13 0.0 20.00 ~ --- -- _. -_ ~~3:~ 15.00 ~ $120.0 10.00 ~, M ,! .~. ~ ^ ~ $1 10.(1 -{ 0.' ~ ~ i 5.00 $1000 0.00 - i -. i - i i -- ~- -- - - -1- - 1 Oct-21108 1 2 3 a 5 Quarter To ti'ear Years Years Years Years Sep-20119 ^ Dana's Fred Portfolio 2.93 (97) 9.24 (91) 924 191j 6.83 (66) G.30 (G51 N1.4 N/A g90.p • Barwp Intermediate U_5 Go~emmenUCredit 325 (92) 10.01 (89) 10 01 (R9) 6.51 (74) 6.15 (70) 5.49 (72) 4.68 (80) 12/05 9i06 6/07 3/08 12/08 9/09 Dana's Fixed Portfolio Median 4.80 12.54 12.54 7.62 G.73 G.00 5.40 - ~ Rarcap Internxdiate U_S. GovemnxntiCredit 1 1 1 I 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Emling Ending Ending dun-21109 Mar-2009 Dec-2008 Sep-20(18 Jun-2008 Mar-2008 Dana's Fixed Portfolio -0.25 (1110) 0.13 (64) 6.26 (14) 0.17 (10) -1.28 (78) 2.93 QS) Barcap 6trenncdiatc. U.$. Go~'amment/Credit I.G7 (88) -0.05 (72) 4.84 (34) -1.19 (45) -1.53 (R9) 3.00 (] 1) US Broad Market Core Fixed Income (SA+CFI Median 3.34 (1.48 3.83 -1.42 -0.95 2.02 ~~ •r1IF. 2s ~ BOGDAHN GROUP Tequesta General Employees' Dana's Fixed Portfolio September 30, 2009 7 n _ _ - o.oo - Ovcr Pertiirmvtcc ^ 6.G ~ ~ c 39.00 ~ q - 6.2 - " 9.R~ c a 'o Y 9A 4 l!nder P erfnrtrnnce e 9.0 - -~- --- -r- - ---~- ~ 9.0 9 4 9-R G.2 6.6 7.0 Bareap Intermediate U.S. Government/Credit ('% ) f- Under PertomNnce -f Over Pcrfo rnwncc ~ Dec-2008 ¢ Sep-3009 90.00 n`. ~ 79D0 ~, x 100 00 ~ ~~ -~~ ~-~~~-rte -~---i 12104 12/09 12,06 12!07 12/08 9/09 Total Period 5-25 25-Dledian Median-75 75-95 Count Count Count Count ^ Dana's Pi~cd Portfolio 4 2 (90°0l 0 (0%) 2 (90%1 0 (0%) • Barcap Intermediate U.S. GovernmenUCredit 20 0 (0 io) ~ (29%) 2 (10 %) 13 (G9°'o) 1 1 1 1 _ ___ 1000 - -- -- 7~0 -- - 8 00 ~ - ~-- 6.00 - - - G.00 ~ d 00 2 ,.00~ C 0.00 ~- ----~ 0.00 2.50 '~-- -- r - 5 00 7.50 Risk (Standard Deviation'%) Return ^ Dana's Pised Portfolio 6.30 ~ Barcap Intermediate U.S. Govennuent/Credit 6.19 -Median 6.73 ~-- 1000 1250 Standard Deviation 3.93 3.79 4.18 4.50 c ~ ; 00 C I i0 L00 4.00 G.00 Risk (Standard De~~ation % ) Return 8 00 10.00 ^ Dnna's Fired Por7Foho NiA • Barcap Intermediate U.S. Governnent/Credit 4.68 - Mediae 9.40 Standard Deviation N%:~ 3.49 3.90 t Tracking IMP Down 1R Sharpe Bete Downside Market Market 41 ha P Ra[io Risk Error Capture Capture _ Dana's Fired Portfolio 1.51 89.65 97.79 L39 0.08 LU7 0.79 0-99 Barcap Intermediate I ~.ti. GocernmendCredit 0.00 IUO.OU 100.00 0.00 N/A 489 1.00 I-68 t Tracking IMP Down IR Sharpe Reta Downside Market Market AI ha P Ratio Risk En'ar Capture Capture Uana's Fired Portfolio N/A N/A N/A N/A N/A N/A N/~: '~/'~ Barcap Intermediate I'S. Govemrent/Credit Q00 100 00 IOOAO 0.00 N/A 0.91 1.00 1.54 ~~ THF. z, (~ BOGDAHN GROUP Tequesta General Employees' Benchmark History As of September 30, 2009 zs TI IF'. BOGDAHN ~' 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 emit 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. [t 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 emit 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 retw•n 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. Up Market Capture -- The ratio of average portfolio return over the benchmark during periods of positive benchmark return. 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. 29 l~ ~THF. 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