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Home My WebLink AboutDocumentation_Pension General_Tab_06_02/01/2010 Tequesta General Employees' Preliminary Report 4th Quarter 2009 -a ~ ~~) sirnplifyingyolrr iunatmrnt and fiduciary drrisions No Text The Market Environment Major Market Index Performance Period Ended: December 31, 2009 ~ Quarter Performance ^ Much like 2008, 2009 will not be a year that investors will soon forget. After opening the year with a continuation of 2008's risk aversion and negative performance, investors embraced equity and credit-based risk assets, which drove market returns higher at one of the most rapid paces in history. However, each of the chart's strong annual equity results are somewhat deceptive since many of the equity benchmarks were down in excess of -20% during the 4tn quarterof 2008. ^ Outside of the United States, emerging markets more than tripled the performance of developed markets during the quarter and was once again the strongest broad asset class in our summary. These results are even more pronounced on an annual basis with emerging markets posting an impressive +79.0% for the year. ^ Most of the core domestic equity indices posted similar results to the S&P 500's return of +6.0% for the quarter. Small cap issues, represented by the Russell 2000 index, returned a slightly lower +3.9% for the quarter. Over the one-year period, the Russell MidCap index posted the group's outsized performance relative to the various capitalization ranges with a return of +40.5%. ^ The Barclays aggregate return of +0.2% for the quarter was dominated by the performance of credit issues (+1.3%) in the index as spreads continued to compress for most of the quarter. The government index's return of -1.0% was impacted by the yield curve's move during the quarter. For the trailing 1-year period, the Barclays Aggregate posted a solid +5.9% return, which stands in contrast to the -2.2% return of the Government Index and the +18.7% return of the Investment Grade Credit index. Source: Barclays Capital, MSCI Capital Markets, Russell Investments MSCI ACWxUS 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 -5.0% 0.0% One Year Performance MSCI ACWxUS MSCIEAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill 5.0% 10.0% az., % -- 32.5 79.0 26.5 28.3 28.4 aos%I 2Z2% 59 % I I .2% 5.9 18.7 % I'~. 0.2 -10.0% 10.0% 30.0% 50.0% 70.0% 90.0% ~~ THE ,,: BOGDAHN GROUP The Market Environment Long-Term Major Market Index Performance Period Ended: December 31, 2009 MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russel 13000 Russe111000 Russell MidCap Russe112000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill 0.0% 5.0% 10.0% 15.0% 20.0% -5.0% 0.0% 5.0% Twenty-Five Year Annualized Pertormance I Thirty Year Annualized Performance I MSCI ACWIxUS MSCI EAFE MSCI Emerg. Mkts. S&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% 5.0% 10.0% 15.0% 0.0% 5.0% 10.0% Source: MSCI Capital Markets. Russell Investments, Barclays Caprfal & Bogdahn ConsuRing, LLC. 2 Five Year Annualized Performance MSCI EAFE MSCI Emerg. Mkts. S8P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill MSCI ACWIxUS MSCIEAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill i Ten Year Annualized Performance 10.1 i 10.0% 15.0% 15.0% The Market Environment Domestic Equity Style Index Performance Period Ended: December 31, 2009 Quarter Performance ^ A rally in two of the largest sectors of the growth benchmarks (information technology and health care) drove growth index performance to outpace value index results at all capitalization levels. The financial sector's negative performance, which represented a weight of more than 20% in each of the Russell value indices at the end of the quarter, was also a contributing factor to the underperformance of value relative to growth investments. ^ The differential between value and growth index results for the 4th quarter were broader at the large cap levels primarily due to a larger exposure to the strong performing information technology sector in the smaller capitalization value indices. While the range of style-based returns is much broader at all capitalization levels over the one year period, the causes are similar to the 4th quarter's results. Annual differentials were driven by the strong positive results in the information technology sector and the negative performance of the financial sector. ^ Style-based results over the one-year period were heavily impacted by the end-point sensitivity of the calculation. This sensitivity is quantified by the elimination of the 4th quarter of 2008's performance in the calculation, which fell by more than 20% for each style-based index, and the inclusion of the 4tn quarter of 2009's results, which were positive for all of the indices. 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCaplndex MidCap Growth 2000 Value 20001ndex 2000 Growth 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCaplndex MidCap Growth 2000 Value 20001ndex 2000 Growth One Year Performance I 19.6 28.3 37.0 19.7 28.4 372 34.2 ao.s % 46.3 20.6 27.2 34.s 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% ~^ THE Source: Russell Investments ` BOGDAHN 3 ~...- GROUP 0.0% 5.0% 10.0% The Market Environment GICS Sector Performance & (Quarter-End Sector Weight) Period Ended: December 31, 2009 ^ Large cap stock performance was positive across the various Global Industry Classification Standard (GICS) sectors for the quarter with the exception of financial issues, which were mildly negative. While six of the index's ten sectors outpaced the +6.1 % return of the Russell 1000, performance was led by strong results in the information technology (+10.8%) and health care (+8.7%) sectors. ^ The financial sector of the Russell 1000, which was the strongest sector of the index during the 2"d and 3~d quarters of the year, posted the index's weakest performance during the 4th quarter with a return of -2.6%. However, the strong results of the previous quarters are evident in the solid +16.7% return of the financial sector for the year. ^ Within the Russell 1000 index, each of the ten GICS sectors posted positive results for the year. The strongest performance came from the information technology (+62.0%), materials (+52.5%) and consumer discretionary (+45.1 %) sectors of the index. ^ For the quarter, small cap stock performance was positive across all ten GICS sectors with the materials (+10.3%), consumer staples (+7.7%), and energy (+7.1 %) sectors providing the largest contribution. Six of the Russell 2000's economic sectors managed to outpace the 3.9% return of the core index for the Ott' quarter. ^ For the year, seven of the ten GICS sectors in the Russell 2000 posted annual returns in excess of 20%. In fact, three sectors posted returns in excess of 50%. Only the financial sector, which returned -1.5%, posted a negative result for the year. ^aTR 01-Year Energy (11.3%) Materials (4.0%) Industrials (10.4%) Consumer Disc (10.2%) Consumer Staples (10.7%) Health Care (12.5%) Financials (14.4%) InfoTechnology (19.4%) Telecom Services (3.1%) Utilities (4.0%) ~ Russell 1000 5.5 17.2 e.1 % 52.5 5.5% 22.9%a 6.3 as.i % 4.9 15.5% a.7 % zt7% -2.6 1A.7% s.a % 62.0 6.3 1 z.a % 6.8 12.9 -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0°/ 60.0% 70.0% ^aTR Russe112000 I O1-Year Energy (5.2%) Materials (4.8%) Industrials (15.8%) Consumer Disc (13.8%) Consumer Staples (3.5%) Health Care (14.3%) Financials (20.3%) Info Technology (18.3%) Telecom Services (1.0%) Utilities (3.2%) 7.1 % a1.o % 10.3 60.9 3.7 13.9 % a.1 % 60.8 7.7 23.BY 2.7 z2s % ta% -1.5 3.4 ss.s % s.a % 23.9 7.0 % 7.9 % -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% ~^ THE Source: Thompson Financial I ` BOGDAHN 4 \ _ ., " GROUP The Market Environment Quality Rankings* Breakdown by Weight and Quarterly Performance Period Ended: December 31, 2009 Within the Russell 1000 index, the performance of each of the quality segments, with the exception of those classified as "not available", were spread over a relatively narrow spectrum during the 4th quarter. Of the companies that received a rating, "B" rated stocks turned in the strongest performance with a return of +7.2%, while "B=' rated stocks returned a weaker but still solid +4.7% for the quarter. With nearly 30% of the small cap Russell 2000 index being classified as "not rated", drawing sweeping quality conclusions from the data can be more problematic. However, for the issues with a weight in excess of 1 % in the breakdown, there appears to be a clear advantage to quality in smaller cap issues with the "A+" and "A" rated segments of the index leading pertormance for the quarter. „~ A+ 10.6% 5.5% q 10.7% 7.0% A_ 14.1 % 4.8% g+ 16.9% 6.5% g 5.9% 7.2% g_ 28.1 % 4.7% C 2.1 % 6.5% p 0.0% 0.0% Not Rated 10.8% 8.8% N/A ,~~ 0.8% ~~ ~~ 14.2% ~~~ A+ 3.1 % 6.2% A 5.0% 4.6% A_ 0.7% -0.2% B+ 17.3% 4.6% g 20.4% 2.5% g_ 12.2% 4.3% C 11.2% 1.1% p 0.2% 16.6% Not Rated 29.3% 4.8% N/A iii 0.6% i~ i 10.0% Quality Rankings Table High ~ Above Average ~ Average ~ Below Lower I Lowest I 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 ~~ THE BOGDAHN ~~~ GROUP The Market Environment International and Regional Market Index Performance (# Countries) Period Ended: December 31, 2009 ^QTR (USD) Quarter Performance O QTR (Local) ^ For the first time since the equity markets turned positive back in March, intemational developed markets (+2.2%) lagged the AC Worldx US (aa) performance of domestic equity markets across the wORLDxUS(22) capitalization spectrum. Another phenomenon visible in the performance of international developed markets during the 4tn EAFE(z1) quarter is the strength of the U.S. dollar (USD). Both the Europe(18) Europe and Pacific regions of the MSCI-EAFE index show stronger results in local currency vs. USD. Pacific (s) ^ Emerging Markets continued its strong performance during the 4th quarter with a return of +8.6%. Unlike the developed markets, which were impacted by USD strength, the currency effect on the performance of the emerging markets index continued to be positive. This USD depreciation is visible in the 4th quarter performance of each of the emerging market country segments. ^ Over the trailing one-year period, the USD's broad deprecation against various foreign currencies is evident. This USD deprecation had a positive impact for U.S. investors on un-hedged international returns. ^ In contrast to the domestic indices which were driven by information technology and health care results, the GICS sector attribution of both the EAFE and ACWIxUS indices illustrates the largest strength coming from exposure to materials and consumer staples issues. While financial sector weakness was evident in both indices (-4.5% & -1.8%), the information technology and utilities sectors also posted negative results in the EAFE index. Source: MSCI Capital Markets 6 Emerging Mkt (22) 3.8 a.1 % 2.5 3.3 2.2 % 3.4 ~3% a.o % 2.1 % 8.6 % a.z 9.3 6.6 % s.a a.s % 2.5 % 2.3 EM Europe (5) EM Asia (8) EM Latin Amer (7) 0.0% ^ 1-Year (USD) 01-Year (Local) AC World 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) 5.0% 10.0% 15.0% One-Year Performance az.1 % 32.4 34.4 2s.o % 32.5 25.4 36.8 28.s % - 79.0 s2.e% as.2 % 73.6 74.2% sa.1 1oa.2% 63.2 0.0% 20.0% 40.0% 60.0% 24.3 19.8 80.0% 100.0% 120.0% THE: BOGDAHN GROUP The Market Environment U.S. Dollar International Index Attribution & Country Detail Period Ended: December 31, 2009 Energy 8.4% 7.0% 34.9% Materials 10.4% 13.2% 70.0% Industrials 11.2% 1.5% 31.8% Consumer Discretionary 9.7% 2.9% 38.0% Consumer Staples 10.1% 8.1% 32.2% Health Care 8.4% 5.4% 18.3% Financials 25.5% -4.5% 38.7% Information Technology 4.8% -2.6% 21 9% Telecommunication Services 5.8% 1.6% 16.6% Utilities 5.9% ' . 4r -0.3°%~ 5.3°~~ Energy 11.2% 7.3% 51.2% Materials 12.0% 12.7% 76.5% Industrials 9.8% 2.4% 36.0% Consumer Discretionary 8.4% 4.4% 45.9% Consumer Staples 8.5% 9.2% 36.3% Health Care 6.4% 6.0% 19.8% Financials 25.8% -1.8% 48.6% Information Technology 6.7% 2.7% 51.7% Telecommunication Services 6.2% 1.9% 19.8% Utilities 5.0°/ F~ 0.9°/ 11.2° Source: MSCI Capital Markets, & Franklin/Templeton United Kin dom 21.6 % 15.2 % 7.0 % 43.4 Ja an 20.7% 14.5% -2.8% 6.4% France 11.1 % 7.8% 2.2% 33.3% Australia 8.4% 5.9% 5.0% 76.8% German 8.1 % 5.7°/ 2.2% 26.6% Switzerland 7.7% 5.4% 3.8°/ 26.6% Spain 4.6% 3.2% 1.6% 45.1% Ital 3.5% 2.4% -2.6% 28.0% Netherlands 2.7% 1.9% 3.8% 43.0% Sweden 2.5% 1.8% 3.6% 65.9% Hon Kon 2.3% 1.6 % 3.6% 60.2% Sin spore 1.5% 1.0% 9.8% 74.0% Finland 1.1% 0.8°/ -3.5% 12.7% Bel ium 1.0% 0.7% 1.6 % 58.6 Denmark 0.9% 0.6% -2.8°/ 37.1% Nonva 0.8% 0.6% 14.9% 88.6% Greece 0.5% 0.4% -22.4% 25.3% Austria 0.3% 0.2% -9.8% 44.8% Portu al 0.3% 0.2% 0.5% 41.7% Ireland 0.3% 0.2% -2.7% 12.9% New Zealand 0.1% ~~ i•, 0.1 % i 0.1 % 51.7% Canada 7.3% 5.2% 57.4% ~~ China 4.0% 9.6% 62.6% Brazil 3.8% 13.1% 128.6% Korea 2.8°/ 2.3% 72.1 Taiwan 2.5% 8.1% 80.3° India 1.7% 7.7% 102.8% South Africa 1.5°/ 9.4% 57 8% Russia 1.4% 10.5% 104.9° Mexico 1.0% 13.7% 56.6% Israel 0.6% 14.1% 54.6% Mala is 0.6% 6.7% 52.1 Indonesia 0.4% 5.2% 127.6° Turkey 0.3°/ 9.2% 98.5% Chile 0.3°/ 15.4% 86.7% Thailand 0.3% 1.1% 77.3% Poland 0.3 % 12.9% 42.5% Colombia 0.1% -1.1% 84.4% Peru 0.1% 0.8% 72.1 Hungary 0.1% 3.5°/ 77.6% Egypt 0.1% -6.2% 39.7% Philippines 0.1% 9.8% 68.0% Czech Republic 0.1 % -6.9°/ 27.8% Morocco } e ~ he -i_1^! -> 0",'- ~~ TtiE BOGDAHN `' GROUP The Market Environment Domestic Credit Sector & Broad Market Maturity Performance Period Ended: December 31, 2009 Quarter Performance ^ Although the equity quality performance distribution showed a much more narrow range than in previous quarters, a move down the quality ladder in fixed income assets continued to reward investors willing to take on lower quality debt. In addition to the "quality-play" that is evident in the performance numbers of the various credit indices, the longer-dated broad index suffered relative to the shorter-term broad indices as a result of a steepening curve. This yield curve movement is particularly evident in the results of the chart's government benchmark, which recorded a -1.1 % return for the quarter. ^ For the quarter, high yield issues once again produced the strongest results with a return of +6.0%. Results in investment grade segment of the credit market (BBB to AAA) step down dramatically from high yield results. These investment grade results range from +2.2% for BBB issues down to -0.8% for AAA issues. Outside of government and credit issues, the chart's mortgage-backed benchmark posted a mild but positive return of +0.5%. ^ Each of the themes that are described in the paragraphs above for 4th quarter are also evident, and much more dramatic, over the one-year period. This disparity is best illustrated in the more than 60% performance differential between the year's high yield return of +57.5% and the government return of -2.6%. as A Bss <BBB Govt Mort 1-3yr GIM/C 1-Syr G/M/C 1-10yr G/MIC 10+yrGIM/C Ewa, as A ass <ess Govt Mort 1-3yrG/M/C 1-SyrG/M/C 1-10yr G/M/C 10+yrGIM/C Source: Merrill Lynch Index System 8 -0.a % o.s % o.~ % za % 6.0 -,., % o.s % G/MIC =Broad Market (Government + Mortgage + Corporate) 0.6 0.5% o.a % •2.6 -5.0% 0.0% ~ One Year Performance 5.0% 10.0% -0.~ % 9.1 % - - 15.9 31.4% .., s~s% -zs % 5.6 i 5.4 5.8 % i t.fi % -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% `~ THE •/ BOGDAHN ~'" GROUP The Market Environment Market Rate & Yield Curve Comparison Period Ended: December 31, 2009 ^ During the quarter, the Fed kept the target for the Fed funds rate unchanged at 0-25 basis points, despite calls by many market observers to systematically remove the stimulative effects of such a low interest rate policy. The Fed continued to state in its press release that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. ^ The various indicators reported in the 2009 Market Rates charts continue to show improving credit conditions and more stable inflation expectations than were evident earlier in the year. ^ Reversing its move during the 3rd quarter, the Treasury yield curve increased at maturities beyond two years during 4tn quarter to their highest level of 2009. This steepening is particularly visible at the long end of the curve where rates spiked by 60 basis points during the quarter. ^ The benchmark 10-year Treasury finished the quarter with a yield of 3.85%. This yield represented an increase of 54 basis points from the yield at the end of the 3rd quarter (3.31 %) and a 160 basis point increase from the yield at the end of 2008 (2.25%). Source: Mortgage-X.com , US Department of Treasury & St. Louis Fed ~.oo 6.00 s.oo 4.00 3.00 2.00 1.00 o. 00 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Treasury Yield Curve 6.00 s.oo a.oo 3.00 2.00 1.00 0.00 112/31/2008 i i 6/30/2009 ~-•9/30/2009 -X12/31/2009 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr ~^ THE 9 BOGDAHN GROUP 2009 Market Rates The Market Environment Decades in Review Period Ended: December 31, 2009 ^ Despite some exciting years along the way, the decade that ended December 31, 2009 represented the weakest calendar decade on record for stocks back to the 1930's. In contrast to the returns on stocks, both bond and cash results for the 2000's were consist with long-term averages. ^ The rolling decade chart presents a similar visual story as the "Returns by Decade" chart. However, by moving the inception period back to 1926 and rolling the 10-year periods forward by month, some mid 1930's 10-year returns were lower than those recorded during the 2000's decade. Source: ibbotson & Zephyr Associates 10 zs.o°i° • 20.0% 15.0% 10.0% ' 5.0% 0.0% -5.0% -10.0% 25.00 20.00 15.00 10.00 5.00 0.00 Returns by Decade e I ~ r I N N I i ^ a N I ~ N i i ° ~ ° ~ ~ O i ~ o c A A c ~ ~ A O~ n ~-' • \ e ~ tp I ~ ° ~ N ~ ~<S~: I(f a ~ ~ O ~ ~ Of ig ~ _~ tq M ,+j e m a -. c o a 4 9 ^Stocks ^Bonds ^Cash 1930's 1940's 1950's 1960's 1970's 1980's 1990's 2000's Average Rolling 10-Year Returns -5.00 `~ -Equity -B -10.00 Dec-35 Mar-45 Jun-54 Sep-63 Deo-72 Mar-82 Jun-91 Sep-00 Dec-09 ~~ BOGDAHN GROUP ~~ ; BOGDAHN GROUP Total Fund December 31, 2009 September 30, 2009: $1,265,195 December 31, 2009: $1,358,762 Segments Market Value Allocation Segments ($~ (%~ ^ Equity 661,084 52.3 ^ Equity ^ International Equity 93,496 7.4 D International Equity ^ Fixed Income 433,864 34.3 ^ Fixed Income ^ Cash Equivalent 76,750 6.1 ^ Cash Equivalent Market Value Allocation ~$) (%) 695,526 51.2 98,430 7.2 478,698 35.2 86,109 6.3 ~~.~ BOGDAHN ~ z `_ .. GROUP Total Fund December 31, 2009 September 30, 2009: $1,265,195 December 3l, 2009: $1,358,762 Market Value Allocation Market Value Allocation ^ Dana Balanced Portfolio 1,157,325 91.5 ^ Dana Balanced Portfolio 1,247,761 91.8 ^ Dana International Equity 95,998 7.6 ^ Dana International Equity 100,383 7.4 ^ R&D 11,872 0.9 ^ R&D 10,618 0.8 ~~ BOGDAHN 13 ~. ., GROUP Tequesta General Employees' Asset Allocation As of December 31, 2009 asset Allocation R&D Dana International Equity Dana Balanced Portfolio Total Fund 2,239 0.22 1,019,239 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 9].47 1,265,195 100.00 10,618 0.78 100,383 7.39 1,247,761 91.83 1,358,762 100.00 Historical Asset Allocation By Se ment 100.0 ~ ~_-._ .~_._ _ _~ _-__ ^~ ~ ~ -. 80.0 ,. ~.., . , -- -,,~,„ ;.,:.- ~.<`a: .:,,~:- .: - ; ^ .. _..~. ,_ ,. _ .: _ ~_ ~ - 0 ~ 60.01 0 .R ~ 40.0 - C 20.0 9/09 10/09 11/09 12/09 ^ Equity ~ International Equity .Fixed Income ~ Cash Equivalent ~~ THE 14 ~ BOGDAHN GROUP Tequesta General Employees' Financial Reconciliation As of December 31, 2009 Financial Reconciliation Dana Balanced Portfolio 1,157,325 -12,000 66,416 - - -2,185 8,557 29,649 1,247,761 R&D Account 11,872 12,000 - - -1,730 -11,523 - - 10,618 Dana International Equity 95,998 - - - - -210 425 4,169 100,383 Total Fund 1,265,195 - 66,416 - -1,730 -13,918 8,982 33,818 1,358,762 Financial Reconciliation FYTD Dana Balanced Portfolio 1,157,325 -12,000 66,416 - - -2,185 8,557 29,649 1,247,761 R&D Account 11,872 12,000 - - -1,730 -11,523 - - 10,618 Dana International Equity 95,998 - - - - -210 425 4,169 100,383 Total Fund 1,265,195 - 66,416 - -1,730 -13,9]8 8,982 33,818 1,358,762 15 BOGDAHN GROUP Tequesta General Employees' Comparative Performance Trailing Returns As of December 31, 2009 Total Fund (Net) 3.16 14.26 -2.88 0.34 2.59 4.04 3.75 11/01/2000 l ~,l;ii f uE.~l I'~~Gc~ ,il i ~.11~ --l_IIU -Il."'~ ~.U~) ~_ k- ,.I) Difference -0.54 -3.79 1.21 1.06 0.50 1.57 0.72 Total Fund (Gross) 3.30 14.55 -2.63 0.52 2.80 4.21 3.91 11/01/2000 ~fot~il FLU?lI. l'~,lic_~ a.?Il 1x.Q~ --4.(19 -l)J~ 2.O4 x.-17 3.Oi Difference -0.40 -3.50 1.46 1.24 0.71 1.74 0.88 Dana Core Equity 5.55 24.81 -10.76 -5.02 -0.46 N/A 0.32 11/01/2005 Difference -0.49 -1.65 -0.02 0.61 0.21 N/A 0.07 Dana International Equity 4.80 N/A N/A N/A N/A N/A 26.34 07/01/2009 \1St I i:.aF1~ fn~l~~ ~.~~ ?~ fit, -1 ~.4~ -~S7 1.66 -l.U~ ?_'.1ti Difference 2.58 N/A N/A N/A N/A N/A 4.16 Dana Fixed 0.49 3.31 5.70 6.05 5.59 N/A 5.59 11/01/2005 I~ar~a;, Int~:rm~~ui;it~~ l ti t~„~crnni~~tt (r~~.li:, 1~ ; 1 ` '1 ~ Iri ~.')li ~ -1-1 -4_i;~ ~.-l Difference 0.18 -1.93 0.54 0.15 0.15 N/A 0.11 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Total Fund Policy= 60"/o S&P 500, & 40"/o LB G/C Intermediate. ~~ THE Dana's inception date is ]0-13-2005. Dana Core Equity contains international prior to 7/]/2009. BOGDAHN 16 ~ ,~~ GROUP Tequesta General Employees' Comparative Performance Fiscal Year Returns As of December 31, 2009 otal Fund (Net) 1.64 -10.34 11.64 10.35 11.09 2.08 0.83 ~,i;~,l ,,~I I ~,lic _ ~iflerence 1.16 2.12 -0.38 2.47 2.72 0.05 -0.41 'otal Fund (Gross) 1.76 -10.10 11.64 10.67 11.09 2.70 0.83 r,ial Fun~1 f~,lic ~ (1.~~ -I_.~b I'.i)~ ~.hX ti.~7 '.0~ 1.x=1 _ -ifference 1.28 2.36 -0.38 2.79 2.72 0.67 -0.41 Jana Core Equity -8.19 -19.68 16.70 N/A N/A N/A N/A fiY ~UU -6.~) t -' { .~)~ I ti.-l~t I U.7~? I ~.' ~ I ;.~ ~' ~-1.-1U )ifference -1.28 2.30 0.26 N/A N/A N/A N/A Jana International Equity N/A N/A N/A N/A N/A N/A N/A 1St~l I ~f 1- Inclc~ ~.81~ -~U.I; ~j ;~ I`).6~ X6.3' '~.~' '_6.~~ )ifference N/A N/A N/A N/A N/A N/A N/A Lana Fixed 9.24 4.47 5.25 N/A N/A N!A N/A i;ll1"~Ih IIIICIill4l~l;IlC I .ti_ (n~VCrIl111C111'~ I~Cllll ~fl.O~ _i, ~ :. ~,-~+ i, ~-~ I,~ti ~.(~( L.I111 )ifference -0.77 1.34 -0.18 N/A N/A N/A N/A 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. ~~ THE: Dana's inception date is 10-13-2005. Dana Core Equity contains international prior to 7/1/2009. ROGT> A LT1~T 17 ~_ . ,- i! lJt1i ill GROUP Tequesta General Employees' Benchmark History As of December 31, 2009 Historical Hvbr~ti c Effective Date: .Ian-1978 Citigroup 3 Month T-Bill Effective Date: Jan-2004 S&P 500 Index Citigroup 3 Month T-Bill Barclays Capital U.S. Government/Credit Effective Date: Oct-2005 S&P 500 Index Barclays Capital Intermediate U.S. Government/Credit Effective Date: Dec-2009 S&1' 500 Index Barclays Capital Intermediate U.S. Government/Credit MSCI EAFE 100.00 60.00 20.00 20.00 60.00 40.00 50.00 40.00 10.00 is Historical Effective Date: Feb-2004 Barclays Capital U.S. Government/Credit Effective Date: Oct-2005 Barclays Capital Intermediate U.S. Government/Credit 100.00 100.00 ~~ THE BOGDAHN GROUP -43,2() \Vinfic1d Road Suitc \VarrcII iI Ic, Illinois 6O�5 THE BOGDAHN GROUP simhlifj-ing turn• investment any/ fifJuriart eleclsinns incland Road UIIanilo. I I o I I d a M I I W tukcc �uitc i�iiii '_ �ii F. A\i,�on,in _A� c tiuitc I \1 \lill.con,in x,o('. i-}II -O , Village of Tequesta General Employees' Pension Plan Quarterly Review \\'\\ \C.R(~c;l);111tic;Rt)UI'.c:'c)~i 4th Quarter 2009 THE B~o~G~JAHN CROUP sirnplifyi~lg your ineah~rent and fiduci.riy decisions The Market Environment Major Market Index Performance Period Ended: December 31, 2009 Quarter Performance ^ Much like 2008, 2009 will not be a year that investors will soon forget. After opening the year with a continuation of 2008's risk aversion and negative pertormance, investors embraced equity and credit-based risk assets, which drove market returns higher at one of the most rapid paces in history. However, each of the chart's strong annual equity results are somewhat deceptive since many of the equity benchmarks were down in excess of -20% during the 4cn quarter of 2008. ^ Outside of the United States, emerging markets more than tripled the performance of developed markets during the quarter and was once again the strongest broad asset class in our summary. These results are even more pronounced on an annual basis with emerging markets posting an impressive +79.0% for the year. ^ Most of the core domestic equity indices posted similar results to the S&P 500's return of +6.0% for the quarter. Small cap issues, represented by the Russell 2000 index, returned a slightly lower +3.9% for the quarter. Over the one-year period, the Russell MidCap index posted the group's outsized performance relative to the various capitalization ranges with a return of +40.5%. ^ The Barclays aggregate return of +0.2% for the quarter was dominated by the performance of credit issues (+1.3%) in the index as spreads continued to compress for most of the quarter. The government index's return of -1.0% was impacted by the yield curve's move during the quarter. For the trailing 1-year period, the Barclays Aggregate posted a solid +5.9% return, which stands in contrast to the -2.2% return of the Government Index and the +18.7% return of the Investment Grade Credit index. MSCI ACWxUS MSCIEAFE MSCI Emerg. Mkts. S&P 500 Russe113000 Russell 1000 Russell MidCap Russell 2000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill 3.8 2.2 8.6 6.0 5.9 6.1 5.9 3.9 0.2 % -1.0 % 0.6 1.3 o.o % -5.0% 0.0% One Year Performance MSCI ACWxUS ' MSCI EAFE i MSCI Emerg. Mkts. S8P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG .z% ss% 5.9% 3mos. T-Bill 0.2 % -10. 0% 10.0% 32.5 5.0% 42.1 Y 1o.o°i° 79.0 1aa% i I i i I 30.0% 50.0% 70.0% 90.0% Source: Barclays Capital, MSCI Capital Markets, Russell Investments The Market Environment Long-Term Major Market Index Performance Period Ended: December 31, 2009 ~ Five Year Annualized Performance j Ten Year Annualized Performance MSCIEAFE MSCI Emerg. Mkts. S&P 500 Russel 13000 Russel 11000 Russell MidCap Russell 2000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG MSCI EAFE 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 10.1 0.0% 5.0% 10.0% 15.0% 20.0% -5.0% 0.0% 5.0% Twenty-Five Year Annualized Performance I Thirty Year Annualized Performance I MSCI ACWIxUS MSCIEAFE MSCI Emerg. Mkts. S8P 500 Russel 13000 Russell 1000 Russell MidCap Russel 12000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG MSCI ACWIxUS MSCIEAFE MSCI Emerg. Mkts. S8P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill 10.0% 15.0% 5.2 10.2 % NIA 11.2 t t.t 11.1 12.6 1o.a% a.s % 8.6 s.1 % s.z % 5.7 0.0% 5.0% 10.0% 15.0% 0.0% Source: MSCI Capital Markets. Russell Investments, Barclays Capital & Bogdahn Consulting, LLC. 2 3mos. T-Bill 3mos. T-Bill 5.0% 10.0% 15.0% The Market Environment Domestic Equity Style Index Performance Period Ended: December 31, 2009 ~~Q au rterPerformance ^ A rally in two of the largest sectors of the growth benchmarks (information technology and health care) drove growth index performance to outpace value index results at all capitalization levels. The financial sector's negative performance, which represented a weight of more than 20% in each of the Russell value indices at the end of the quarter, was also a contributing factor to the underperformance of value relative to growth investments. ^ The differential between value and growth index results for the 4th quarter were broader at the large cap levels primarily due to a larger exposure to the strong performing information technology sector in the smaller capitalization value indices. While the range of style-based returns is much broader at all capitalization levels over the one year period, the causes are similar to the 4th quarter's results. Annual differentials were driven by the strong positive results in the information technology sector and the negative performance of the financial sector. ^ Style-based results over the one-year period were heavily impacted by the end-point sensitivity of the calculation. This sensitivity is quantified by the elimination of the 4th quarter of 2008's performance in the calculation, which fell by more than 20% for each style-based index, and the inclusion of the 4tn quarter of 2009's results, which were positive for all of the indices. 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCaplndex MidCap Growth 2000 Value 20001ndex 2000 Growth o.o°i° as % 5.9 7.6 . 42 % 6.1 zs% 52°/> 5.9 s.~ % 3.6 3.9 a.t % s. o% 10. o% One Year Performance 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 G rowth MidCap Value MidCaplndex MidCap Growth 2000 Value 20001ndex 2000 Growth Source: Russell Investments 3 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% The Market Environment GICS Sector Performance & (Quarter-End Sector Weight) Period Ended: December 31, 2009 ^ Large cap stock performance was positive across the various Global Industry Classification Standard (GICS) sectors for the quarter with the exception of financial issues, which were mildly negative. While six of the index's ten sectors outpaced the +6.1 % return of the Russell 1000, performance was led by strong results in the information technology (+10.8%) and health care (+8.7%) sectors. ^ The financial sector of the Russell 1000, which was the strongest sector of the index during the 2nd and 3rd quarters of the year, posted the index's weakest performance during the 4th quarter with a return of -2.6%. However, the strong results of the previous quarters are evident in the solid +16.7% return of the financial sector for the year. ^ Within the Russell 1000 index, each of the ten GICS sectors posted positive results for the year. The strongest performance came from the information technology (+62.0%), materials (+52.5%) and consumer discretionary (+45.1 %) sectors of the index. ^ For the quarter, small cap stock performance was positive across all ten GICS sectors with the materials (+10.3%), consumer staples (+7.7%), and energy (+7.1 %) sectors providing the largest contribution. Six of the Russell 2000's economic sectors managed to outpace the 3.9% return of the core index for the 4th quarter. ^ For the year, seven of the ten GICS sectors in the Russell 2000 posted annual returns in excess of 20%. In fact, three sectors posted returns in excess of 50%. Only the financial sector, which returned -1.5%, posted a negative result for the year. ^QTR D1-Year ~, Energy (11.3%) Materials (4.0%) Industrials (10.4%) Consumer Disc (10.2%) Consumer Staples (10.7%) Health Care (12.5%) Financials (14.4%) InfoTechnology (19.4%) Telecom Services (3.1%) Uti I ities (4.0%) Russell 1000 5.6 % ~~, 1 ~iy.2 % III s.1 % 52.5 %'' zzs is 8.3 45.1 4.9 15.5 8.7 % i i 21.7 -2.6 16.7 1o.a % 62.0 8.3 1z.a % 6.8 1zs% 10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% ^orR Russe112000 01-Year Energy (5.2%) Materials (4.8%) Industrials (15.8%) Consumer Disc (13.8%) Consumer Staples (3.5%) Health Care (14.3%) Financials (20.3%) Info Technology (18.3%) Telecom Services (1.0%) Utilities (3.2%) -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% r.1 % ato% 10.3 % 60.9 3.7 13.9% 4.1 % 60.8 7.7 % 23.8/ z.7% ' zzs % 1.8 -1.5 3.4 59.9 s.a % 23.9 zo% 7.9 Source: Thompson Financial 4 The Market Environment Quality Rankings* Breakdown by Weight and Quarterly Performance Period Ended: December 31, 2009 Within the Russell 1000 index, the performance of each of the quality segments, with the exception of those classified as "not available", were spread over a relatively narrow spectrum during the 4th quarter. Of the companies that received a rating, "B" rated stocks turned in the strongest performance with a return of +7.2%, while "B" rated stocks returned a weaker but still solid +4.7% for the quarter. With nearly 30% of the small cap Russell 2000 index being classified as "not rated", drawing sweeping quality conclusions from the data can be more problematic. However, for the issues with a weight in excess of 1 % in the breakdown, there appears to be a clear advantage to quality in smaller cap issues with the "A+" and "A" rated segments of the index leading performance for the quarter. „~ ~ q+ 10.6% ~ - - 5.5% A 10.7% 7.0% A- 14.1 % 4.8% B+ 16.9% 6.5% B 5.9% 7.2% B- 28.1 % 4.7% C 2.1 % 6.5% D 0.0% 0.0% Not Rated 10.8% 8.8% N/A ~~~ - 0.8% „ , 14.2% - ~~~ . A+ 3.1 % 6.2% A 5.0% 4.6% A- 0.7% -0.2% B+ 17.3% 4.6% B 20.4% 2.5% B- 12.2% 4.3% C 11.2% 1.1% D 0.2% 16.6% Not Rated 29.3% 4.8% N/A ~~i 0.6% ~r i~, 10.0% Quality Rankings Table Highest I High I Above Average I Average I Below Average I Lower I Lowest I 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 The Market Environment International and Regional Market Index Performance (# Countries) Period Ended: December 31, 2009 ^qTR (usD> Quarter Performance ogTR (Local) ^ k t t d 't' b k For the first time since the equity mares urne pose ive ac in March, international developed markets (+2.2%) lagged the AC Worldx US (44) performance of domestic equity markets across the wORLDxUS(22) capitalization spectrum. Another phenomenon visible in the performance of international developed markets during the 4tn EAFE(21) quarter is the strength of the U.S. dollar (USD). Both the Europe(18) Europe and Pacific regions of the MSCI-EAFE index show stronger results in local currency vs. USD. Pacific (s) Emerging Mkt (22) ^ Emerging Markets continued its strong performance during the 4m quarter with a return of +8.6%. Unlike the developed EM Europe (5) markets, which were impacted by USD strength, the currency EM Asia (8) effect on the performance of the emerging markets index continued to be positive. This USD depreciation is visible in EM Latin Amer (7) the 4tn quarter performance of each of the emerging market o.o°~° s.o°i° 1o.o°r° 1s.o°i° country segments. ^ Over the trailing one-year period, the USD's broad deprecation against various foreign currencies is evident. This USD deprecation had a positive impact for U.S. investors on un-hedged international returns. ^ In contrast to the domestic indices which were driven by information technology and health care results, the GICS sector attribution of both the EAFE and ACWIxUS indices illustrates the largest strength coming from exposure to materials and consumer staples issues. While financial sector weakness was evident in both indices (-4.5% & -1.8%), the information technology and utilities sectors also posted negative results in the EAFE index. ^1-Year (USD) ', O 1-Year (Local) AC World x US (44) WORLD x US (22) EAFE (21) Europe (18) Pacific (5) Emerging Mkt (22) EM Europe (5) EM Asia (8) EM Latin Amer (7) One-Year Performance I 42.1 32.4 34.4 zso% 32.5 25.4 36.8 2s.s % 24.3 ,9.8% - 7s.o% sz.s% T 86.2% 73.6 74.2 68.1% 63.2 104.2% I 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% Source: MSCI Capital Markets 6 The Market Environment U.S. Dollar International Index Attribution & Country Detail Period Ended: December 31, 2009 Energy 8.4% 7.0% 34.9% Materials 10.4% 13.2% 70.0% Industrials 11.2% 1.5% 31.8% Consumer Discretionary 9.7% 2.9% 38.0% Consumer Staples 10.1% 8.1% 32.2% Health Care 8.4% 5.4% 18.3% Financials 25.5% -4.5% 38.7% Information Technology 4.8% -2.6% 21.9% Telecommunication Services 5.8% 1.6% 16.6% Utilities 5.9°/ ?~^ t' -0.3% 5.3% Energy 11.2% 7.3% 51.2% Materials 12.0% 12.7% 76.5% Industrials 9.8% 2.4% 36.0% Consumer Discretionary 8.4% 4.4% 45.9% Consumer Staples 8.5% 9.2% 36.3% Health Care 6.4% 6.0% 19.8% Financials 25.8% -1.8% 48.6% Information Technology 6.7% 2.7% 51.7% Telecommunication Services 6.2% 1.9% 19.8% Utilities 5.0°/ 0.9% 11.2% United Kin dom 21.6% .;~. 15.2`.<~ 7.0~- I a3 a'- Ja an 20.7% 14.5% -2.8% 6.4 France 11.1% 7.8% 2.2% 33.3% Australia 8.4% 5.9% 5.0% 76.8% German 8.1% 5.7% 2.2% 26.6% Switzerland 7.7% 5.4% 3.8°/ 26.6% Spain 4.6% 3.2% 1.6% 45.1% Italy 3.5% 2.4% -2.6% 28.0% Netherlands 2.7% 1.9% 3.8% 43.0% Sweden 2.5% 1.8% 3.6% 65.9% Hong Kon 2.3% 1.6% 3.6% 60.2% Sin spore 1.5% 1.0% 9.8% 74.0% Finland 1.1% 0.8% -3.5% 12.7° Bel ium l.0% 0.7% 1.6% 58.6% Denmark 0.9% 0.6% -2.8% 37.1% Norwa 0.8% 0.6% 14.9% 88.6% Greece 0.5% 0.4% -22.4% 25.3% Austria 0.3% 0.2% -9.8% 44.8% Portu al 0.3% 0.2% 0.5% 41.7% Ireland 0.3% 0.2% -2.7% 12.9% New Zealand 0.1% ~i ~ 0.1% i 0.1% 51.7% Canada 7.3% 5.2% 57.4% ~: China 4.0% 9.6% 62.6% Brazil 3.6% 13.1% 128.6% Korea 2.8% 2.3% 72.1% Taiwan 2.5% 8.1% 80.3% India 1.7% 7.7% 102.8% South Africa 1.5% 9.4% 57.8% Russia 1.4% 10.5% 104.9% Mexico 1.0% 13.7% 56.6% Israel 0.6% 14.1% 54.6% Mala sia 0.6% 6.7% 52.1% Indonesia 0.4% 5.2% 127.6° Turkey 0.3% 9.2% 98.5% Chile 0.3% 15.4% 86.7% Thailand 0.3% 1.1% 77.3% Poland 0.3% 12.9% 42.5% Colombia 0.1% -1.1% 84.4% Peru 0.1% 0.8% 72.1% Hungary 0.1% 3.5% 77.6% Egypt 0.1% -6.2% 39.7% Philippines 01% 9.8% 68.0% Czech Republic 0.1% -6.9% 27.8% Morocco 0.0% ~~ ~ -7.1% -5.0% i Source: MSCI Capital Markets, & Franklin/Templeton The Market Environment Domestic Credit Sector & Broad Market Maturity Performance Period Ended: December 31, 2009 Quarter Performance ^ Although the equity quality performance distribution showed a much more narrow range than in previous quarters, a move aaA down the quality ladder in fixed income assets continued to AA reward investors willing to take on lower quality debt. In A addition to the "quality-play" that is evident in the performance BBB numbers of the various credit indices, the longer-dated broad <BBB index suffered relative to the shorter-term broad indices as a G°vt result of a steepening curve. This yield curve movement is particularly evident in the results of the chart's government Mort benchmark, which recorded a -1.1 % return forthe quarter. 1-3yr G/M/C ^ For the quarter, high yield issues once again produced the 1-syrG/M/c strongest results with a return of +6.0%. Results in investment 1-10yrG/M/C grade segment of the credit market (BBB to AAA) step down 1o+yrG/M/c I Th t t d A.8 0.6 0.7 % 2.2 % 6.0 -,., % 0.5 G/M!C =Broad Market (Government + Mortgage + Corporate) 0.6 0.5 o.a % -2.6 dramatically from high yield resu ts. ese roves men gra e results range from +2.2% for BBB issues down to -0.8% for -5~0% o.o°r° s.o°i° 1o.o°i° AAA issues. Outside of government and credit issues, the chart's mortgage-backed benchmark posted a mild but positive return of +0.5%. AAA ^ Each of the themes that are described in the paragraphs above for 4t" quarter are also evident, and much more dramatic, over the one-year period. This disparity is best illustrated in the more than 60% performance differential between the year's high yield return of +57.5% and the government return of -2.6%. AA A BBB <BBB Govt Mort 1-SyrG/M/C 1-SyrG/MIC 1-10yr G/M/C 10+yrG/M/C One Year Performance A.7 9.1 15.9 31.4 ~,,i, ':,w~ '_``~';_ _ 57.5 -2.6 % i I 5.8 5.1 s.a% ta% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Source: Merrill Lynch Index System $ The Market Environment Market Rate & Yield Curve Comparison Period Ended: December 31, 2009 ^ During the quarter, the Fed kept the target for the Fed funds rate unchanged at 0-25 basis points, despite calls by many market observers to systematically remove the stimulative effects of such a low interest rate policy. The Fed continued to state in its press release that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. ^ The various indicators reported in the 2009 Market Rates charts continue to show improving credit conditions and more stable inflation expectations than were evident earlier in the year. ^ Reversing its move during the 3rd quarter, the Treasury yield curve increased at maturities beyond two years during 4tn quarter to their highest level of 2009. This steepening is particularly visible at the long end of the curve where rates spiked by 60 basis points during the quarter. ^ The benchmark 10-year Treasury finished the quarter with a yield of 3.85%. This yield represented an increase of 54 basis points from the yield at the end of the 3rd quarter (3.31 %) and a 160 basis point increase from the yield at the end of 2008 (2.25%). 2009 Market Rates ~.oo 6.00 s.oo a. 00 3.00 z. 00 1.00 o.oo Dec-08 s.oo 5.00 4.00 3.00 2.00 1.00 0.00 Mar-09 Jun-09 Sep-09 Dec-09 Treasury Yield Curve t12/31/2008 ! 6/30/2009 -X9/30/2009 -0-12/31/2009 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr ~ Fed Funds Rate -TED Spread -3-Month Libor -BAA/10yrSpread -10yrTreasury =~ 10yrTIPs Source: Mortgage X.com . US Department of Treasury & St. Louis Fed 9 The Market Environment Decades in Review Period Ended: December 31, 2009 ^ Despite some exciting years along the way, the decade that ended December 31, 2009 represented the weakest calendar decade on record for stocks back to the 1930's. In contrast to the returns on stocks, both bond and cash results for the 2000's were consist with long-term averages. ^ The rolling decade chart presents a similar visual story as the "Returns by Decade" chart. However, by moving the inception period back to 1926 and rolling the 10-year periods forward by month, some mid 1930's 10-year returns were lower than those recorded during the 2000's decade. Returns by Decade 25.0% 2o.o°r° 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% I '~ i i ai ~ N °u~ m i N i ` N Of N \ e C' d ~, r ~ ° a M r A M e c V 1D I ~ in I ~ <D = ~ ~ ~xy 4 O M W a ~ ~ ~ 0 0 ~ Of °aY^JI ~ . ~ M j 9 o a f 4 ~ ^Stocks ^Bonds ^Cash 1930's 1940's 1950's 1960's 1970's 1980's 1990's 2000's Average Rol I i ng 10-Year Retu rns 25.00 ~Equiry -Bonds -Cash Dec-35 Mar-45 Jun-54 Sep-63 Dec-72 Mar-82 Jun-91 Sep-00 Dec-09 20.00 15.00 10.00 5.00 0.00 -5.00 -10 00 Source: Ibbotson & Zephyr Associates 10 The Market Environment A Closer Look at the Measurement of CPI-U & Core CPI Period Ended: December 31, 2009 ^ The Consumer Price Index for All Urban Consumers (CPI-U) is a measure of the average change in prices ,s.oo over time of goods and services purchased by consumers (inflation). The CPI-U data is calculated on ,2.00 both an unadjusted (chart) and a seasonally adjust basis. While the seasonally adjusted data is often used for s.oo analyzing economic trends, the unadjusted data is used extensively for escalation purposes. The December 2009 s.oo year-over-year change in CPI-U was 2.7%. 3.00 ^ The Core Consumer Price Index is a more narrow measure of inflation in that it excludes the food and energy segments of the CPI-U index. These segments are often excluded by analysts due to their volatility and susceptibility to price shocks that cannot be dampened through monetary policy. Although both the CPI-U and the Core CPI have averaged 4.0% over the analysis period, the chart clearly shows that the two measures have diverged significantly at various times in history. The December 2009 year-over-year change in Core CPI was 1.8%. ^ The table illustrates the various components of CPI-U as well as the items that are excluded in the measurement of Core CPI. This data is from the December 2009 report from the Bureau of Labor Statistics (BLS). Each major component of the index is made up of several sub- segments. Housing as an example, which also carries the heaviest weight in the index, is made up of lodging, fuels & utilities, and household furnishings & operations. o. o0 -3.00 Jan-Sft Jan-68 Jan-78 Jan-88 Jan-98 Jan-OS .. Food & Bev 15.8% .~ -0.4% Housing 43.4% -0.3% Apparel 3.7% 1.9% Transportation 15.3% 14.4% Medical Care 6.4% 3.4% Recreation 5.7% -0.4% Education & Communication 6.3% 2.4% Other .. Less Food 3.4% ~~ 7.6% 8.0% 18.2% Less Energy 14.6% -0.5% BLS 2008 Relative Importance Source: St. Louis Fed & BLS 11 Change vs. Prior Year Total Fund December 31, 2009 iii ~ ~ ~ September 30, 2009: $1,265,195 December 31, 2009 X1,358,762 Segments Market Value Allocation Segments Market Value Allocation ^ Equity 661,084 52.3 ^ Equity 695,526 51.2 International Equity 93,496 7.4 ~ International Equity 98,430 7.2 ^ Fixed Income 433,864 34.3 ^ Fixed Income 478,698 35.2 ^ Cash Equivalent 76,750 6.1 ^ Cash Equivalent 86,109 6.3 ~~ THE: ,2 ~ BOGDAHN GROUP Total Fund December 31, 2009 Asset Allocation By Manager -Current Quarter September 30, 2009: $1,265,195 December 31, 2009: $1,358,762 Market Value Allocation ~$~ ~%~ ^ Dana Balanced Portfolio 1,157,325 91.5 Dana International Equity 95,998 7.6 ^ R&D 11,872 0.9 Market Value Allocation ~$~ (%~ ^ Dana Balanced Portfolio 1,247,761 91.8 Dana International Equity 100,383 7.4 ^ R&D 10,618 0.8 13 ~~ BOGDAHN GROUP Tequesta General Employees' Asset Allocation As of December 31, 2009 Asset Allocation R&D Dana International Equity Dana Balanced Portfolio Total Fund 2,239 0.22 1,019,239 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 ],157,325 91.47 1,265,195 100.00 10,618 0.78 100,383 7.39 ] ,247,761 91.83 1,358,762 l 00.00 Historical Asset Allocation By Se ment 00.0 ~ ; I 80.0 e ~ 60.0- ~:.. _ .. ,~ ,: ~ ,,; . 0 ~. :a u ~ 40.0 20.0 0.0 ~ --- 9/09 10/09 11/09 12/09 ^ Equity ~ International Equity ~ Fixed Income ^ Cash Equivalent ~~ THE 14 ~ BOGDAHN GROUP Tequesta General Employees' Financial Reconciliation As of December 31, 2009 Financial Reconciliation Dana Balanced Portfolio 1,157,325 -12,000 66,416 - - -2,185 8,557 29,649 1,247,761 R&D Account 11,872 12,000 - - -1,730 -11,523 - - 10,6]8 Dana International Equity 95,998 - - - - -210 425 4,169 100,383 Total Fund 1,265,195 - 66,416 - -1,730 -13,918 8,982 33,818 1,358,762 Financial Reconciliation FYTD Dana Balanced Portfolio 1,157,325 -12,000 66,416 - - -2,185 8,557 29,649 1,247,761 R&D Account 11,872 12,000 - - -1,730 -11,523 - - 10,618 Dana International Equity 95,998 - - - - -210 425 4,169 100,383 Total Fund 1,265,195 - 66,416 - -1,730 -13,918 8,982 33,818 1,358,762 ~~ THE ,5 BOGDAHN GROUP Tequesta General Employees' Comparative Performance Trailing Returns As of December 31, 2009 Total Fund (Net) 3.16 (76) 3.16 (76) 14.26 (93) 0.34 (27) 2.59 (42) 4.04 (17) 3.75 N/A 11/01/2000 ~I~~c~I Fund P~,Iir~ ~n I?l i ,ii ul i I~.(i; i,,~i -n.?~ Io;~ ~.nv l~-i ~.~- ir,t,~ ?.n? \ :A Difference -0.54 -0.54 -3.79 1.06 0.50 1.57 0.72 All Public Plans-Total Fiord Median 3.39 3.39 18.63 -0.30 2.31 3.12 N/A Total Fund (Gross) 3.30 3.30 14.55 0.52 2.80 4.21 3.91 11/lll/2000 Dotal Fiord Police ,o -n I.~.~)~ -~1.?~ '.~)') '.-1~ ~.u Difference -0.40 -0.40 -3.50 1.24 0.71 1.74 0.88 Total Fixed 0.49 (63) 0.49 (63) 3.31 (96) 6.05 (72) 5.59 (74) 4.66 (86) 4.47 N/A 02/01/2004 13areif~ Interniccliare 1- _5_ Gm crnmenl C'r~dit U ? 1 i ~' 1 U ; 1 ! ~'? I ~._1 i ~~- i ;_yu (-l~ ~ ` ~~ ~~; i -~.(,5 (4?) -f. ~ ; ~ .A Difference 0.18 0.18 -1.93 0.15 0.15 0.01 0.14 US Intermediate Fixed Income (SA+CF) Median 0.64 0.64 7.87 6.55 6.03 5.27 N/A Dana Core Equity 5,55 (70) 5.55 (70) 24.81 (61) -5.02 (50) -0.46 (61) N/A 0.32 N/A 11/01/2005 ~:~,~ inn ~,.~~-1 ~,, r,_~~~ ~~'i 'r,-lo r-t~i -~ ~,. i-~, -n r~~ i~,i n a~ ~:~~, n ~~ ~~ a Difference -0.49 -0.49 -1.65 0,61 0.21 N/A 0.07 US Core/Large Cap Equity (SA+CF) Median 6.06 6.06 26.20 -5.03 -0.16 1.41 N/A Dana InYI Portfolio 4.80 (14) 4.80 (l4) N/A N/A N/A N/A 26.34 N/A 07/01/2009 \iCll I UI In~l~~ _ ~?'~ ~' 1~`i ;` ~n ~~~-11 - .. ~ ~~,~ ~ l,i. (61 ~ ~_ll~ 1~1~) _~ i,~ \ :t Difference 2.58 2.58 N/A N/A N/A N/A 4.16 hrternational Core Equity (SA+CF) Median 3.07 3.07 33.35 -5.06 2.21 4.96 N/A Dana Fixed Income 0.49 (63) 0.49 (63) 3.31 (96) 6.05 (72) 5.59 (74) N/A 5.59 N/A 11/01/2005 l.i'~.C~I~1 IIlICfnlCdlalC 1 ~, (Ill~l'l 11111 Clll t1~Cdif ~) ~I I.A~1 U.?1 f~~l ~-'-f (~~7! ~.'-)1) (Vi(i) ': ~-~ ~~~;~ ~_(~1 (ti ~) ~.~V ~~\ Difference 0.18 0.18 -1.93 0.15 0.15 N/A 0.11 US Intermediate Fixed Income (SA+CF) Median 0.64 0.64 7.87 6.55 6.03 5.27 N/A 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. THE Dana's inception date is 10-13-2005. Dana Core Equity contains international prior to 7/1/2009. ~ BOGLl~i llr 16 it GROUP Tequesta General Employees' Comparative Performance As of December 31, 2009 Total Fund (Net) 1.64 (46) -10.34 (9) 11.64 (91) 10.35 (41) 11.09 (88) 2.08 (100) 0.83 (10U f~,l~~f Iiuxl !'nli~~~ n_..It ((.;l -I ~ -Ir, i-1~1 1~.(I~ I's-) .~~ (Rr,~ ~.;? 1<)?I '.Ils (Ittf!? I.~-1 ~ lug Difference 1.16 2.12 -0.38 2.47 2.72 0.05 -0.41 All Public Plans-Total Fund Median 1.34 -12.99 14.29 9.58 14.10 12.63 18.22 Total Fund (Gross) 1.76 -10.10 l 1.64 10.67 11.09 2.70 0.83 I tV171~ ~'UIlf1 1YI~~ICV' II_-1~: -~ ~.~(~ ~ , i)~ ~.~~ 4,j? .113 l.?4 Difference 1.28 2.36 -0.38 2.79 2.72 0.67 -0.41 Total Domestic Fixed 9.24 (83) 4.47 (29) 5.25 (73) 3.24 (100) 1.49 (94) N/A N/A li,uc.~~~ Ini~~rm~~lr;tc I ~_ti_ Ckncrnmcnt (l~cdit 1(1.111 i~~) .I ~ 1~1 i ~--1? i~~l ~-} ~~).) 1.~4ti (')~) ~.(,(~ In~'t h.OU i3~41 Difterence -0.77 1.34 -0.18 -0.30 0.01 N/A N/A US Intermediate Fixed Income (SA+CF) Median 11.41 3.21 5.46 3.90 2.08 2.87 5.52 Dana Core Equity -8.19 (75) -19.68 (34) 16.70 (50) N/A N/A N/A N/A C~~l~~li}t -~,')1 (~.~~ -,1 ~~~ it,~~ li,-1.1 ~~~i li)?~) t~0) I~.'~ (tilj 1=,5- (~~~j '-1_x(1 (-1~) Difference -1.28 2.30 0.26 N/A N/A N/A N/A US Core/Large Cap Equity (SA+CF) Median -6.58 -21.35 16.67 10.78 14.36 14.27 24.06 Dana Int'1 Portfolio N/A N/A N/A N/A N/A N/A N/A MSCI EAFE Index 3.80 (45) -30.13 (44) 25.38 (72) 19.65 (54) 26.32 (67) 22.52 (46) 26.54 (49) Difference N/A N/A N/A N/A N/A N/A N/A International Core Equity (SA+CF) Median 3.11 -30.51 26.97 19.76 27.65 21.61 26.21 Dana Fixed income 9.24 (83) 4.47 (29) 5.25 (73) N/A N/A N/A N/A i3;ura~~ lnt~rm~~r(i,rtr l i,~. %;~rcrrnnt~nt (r~~1it IU,(11 (7) ?.I? f~l j ~.-l; (;>) .~-l (~)~} I.-1~ t~?~) ~.6(, ((~7} (,.UU (i~}) Difterence -0.77 1.34 -0.18 N/A N/A N/A N/A US Intermediate Fixed Income (SA+CF) Median 11.41 3.21 5.46 3.90 2.08 2.87 5.52 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. ~^ THE Dana's inception date is 10-13-2005. Dana Core Equity contains international prior to 7/1/2009. I .. BOGDAHN 17 l1' 1! 1 11 ~I GROUP Tequesta General Employees' Total Fund (Net) December 31, 2009 t 1 MarketValuc Net Capital MarkctValuc .4s of Transfers Contributions Distributions Fees Expenses Income Apprec./ Deprec. As of 9/30/2009 12/31/2009 Total Fund (Ncq 1,2(5 - 66 - -2 -14 9 34 1,359 ' I t 1 tt• II' t 1• t II' Market Valne Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec.! Deprec. As of 9/30/2009 12/31/2009 Total Fund (Net) 1,265 - GG - -.. -14 9 34 1,359 Peer Group Analysis -All Public Plans-Total Fund 45.00 (10 ~ 30 . 1.5.00 0 ~ 0.00 ~ z Cummulative Performance $ 140.0 $130.0 $120.0 $ 110.0 $ 100.0 13 8.7 130.1 -I5 nn -30.00 ! ' -- 1 Oct-2009 1 Quarter To Year Dec-2009 ^ Total Fund (Net) 3.16 (76) 3.16 (76) 14?6 (94) • Total Fund Policy 3.70 (3]) 3.70 (3l) 18.05 (58) 2 3 4 Years Years Years -2.R8 (26) 0.34 (31) 2.59 (47) -4.09 (49) -0.72 167) 2.09 (62) 5 Years 4.04 (20) 2.47 (70) Median 3.39 3.39 18.64 -4.20 -0.13 2.44 3.23 -Total Fund INct) -Total Fund Policy ' 1 1 I I 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending F.ndiog Ending Sep-2009 .lun-2009 Mar-2009 Dec-2008 Sep-2008 .lun-2008 Total Fund (Net) S.RO (93) 5.86 (92) -3.R4 (18) -8.23 (7) -5.33 (9) -0.02 (26) Total Fund Policy 10.56 (51) 1(1.13 (SG) -G.51 (71) -11.73 (38) -5.50 (13j -2.12 (96) All Puhlic Plans-Total Fund Mediae 10.59 10.57 -5.69 -12.41 -7.54 -0.77 18 ~~ BOGDAHN GROUP 12/00 12/02 12/04 12/0(, 12/09 20.0 Over P crfornnncc 12.0 Tequesta General Employees' Total Fund (Net) December 31, 2009 .I ~. ~ 0.00 4D e -4.0 y -12.0- ~` Under ~ Performance F- -20.0 - _ _1 _ _.T.. -_. __ -zo n -I2.0 -a.o a.o 12.0 20.0 Total Fund Policy ("/o ) -~-OverPerfbrrrunce -Mar-2005 -0-Dec-2009 G.00 4no~ 2.on c 0 z" 0.00 -2.00 -4.00 ~ ~-ter R.00 10.00 12.00 14.00 16.00 I R.00 Risk (Standard Deviation % ) Return Standard Deviation ^ Total Fund (Net) 0.34 2R3 • Tolal Fund Policy -0.72 12.19 - Median -(1.13 1 L99 ^ ^ • c 25.00 ~ z ~ ^ ~~ 50.00 ~ ~ ~ ~ ~ ~ ~ ~ v ® • a ~ 75.00 ~ ` - .. .~ °~` z loo.on I-~~-~ ~ ~ 'A~ +~ - --r- 3/05 a'06 3/07 3/OR 3/09 12/09 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count ^ Total Fund (Net) 20 3 (1 S%) R (40%) 2 (10'%) 7 (35%) • Total Fund Policv 20 0 (0""/0) 1 (5""/0) 5 (25"/0) 14 (70"/0) 9.00 7.So 6.00 e 4.50 3.00 1.50 0.00 ~ 20.OU 7.50 9.00 10.50 12.00 13.50 15.00 Risk (Standard Deviation % ) Return Standard Deviation ^ Total Fund (Net) 4.04 R.21 • Total Fund Policy 2.47 9.R6 Median 3.23 9.79 1 Tracking Up Down Sharpe Beta Downside Error Market Market .Alpha IR Ratio Risk Grphire Capture Total Fund (Net) 3.53 85.93 80.91 O.RO 0.22 -0.15 0.7R 7.75 Total Fund Policy 0.00 IOO.OU 100.00 0.00 N/A -0.19 I.00 9.57 1 Tracking 11P Down Sharpe B l Downside Error MarkM Market Alpha IR Ratio e a Risk Capture Capture Total Fund (Net) 3.47 91.49 7655 2A0 0.39 0.77 0.7R 6.16 Total Fund Policy 0.00 1011.00 IOOAO 0.011 N/A 0.00 L110 7.52 ~~ THE is BOGDAHN `' GROUP Tequesta General Employees' Dana Core Equity December 31, 2009 I I 1 Market Value Marko Value As of Contributions Distributions F'ccs Expenses Income Capital Apprec./ Deprec. As of 9/30/2009 Transfers 12/31/2009 Dana Corc Rquity 1.157 -12 G6 - - -2 9 30 1,24& ~. I 1 1 II II' 11~ I II' I17arket Value Capital Market Value As of Yet Contributions Distributions Fecs Expenses Income Apprec./ Deprec. As of 9/30/2009 Transfers 12/31/2009 Unna Cure Equity 1,157 -12 66 - - -2 9 30 1,248 1 1 ~' 1 1 I $145.0 -~ 45.00 30.00 15.00 e 0.00 _15.00 -30.00 ~~ ~~ ~~ I Oct-2009 1 2 3 4 5 Quarter To Year Years Years Years Years Dec-2009 ^ Dana Core Equity 5.55 (7(1) 5.55 (70) 24.81 (61) -10.7( ((i6) -5.02 (50) -0.46 (G1) N/A ~ SRcP 500 6.04 (52) 6.04 (52) 26.46 (48) -10.74 (65) -5.63 (7 L) -0.67 (72) 0.42 (82) $130.0 $115.0 $100.0 $R5.0 $70.0 $55.0 12/05 12/06 12/07 12/OR 12/09 Median 6.06 ~ 6.06 26.20 -10.30 ->.03 -0.16 1.41 -Dana Core Equity --S&P 500 1 I I 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep-2009 Jun-2009 Mar-2009 Dec-2008 Sep-200R .lun-2008 Dana Core Equitp 13,29 (R4) 14.19 (71) -R.59 (29) -22.36 (6R) -9,R6 (65) 0.67 (20) S&P 500 15.(,1 (36) 15.93 (41) -I 1.01 (69) -2L94 (GO) -R.37 (40) -2.73 (R2) US Core/Large Cap Equity (SA+CE) Median 15.24 15.54 -10.46 -2L6R -R.9R -1.19 ~~ BOGDAHN 20 ~°" GROUP 5.0 over P crtbrnnn cc 0.0 -. -5.0 ~_ -10.0 ~ -15.0 c o -20.0 ---- - r- - ---r- - - -~ i -20.0 -I 5.0 -10.0 S.0 0.0 Tequesta General Employees' Dana Core Equity December 31, 2009 .t ~. ~ o.on Under P erforrnan ce 5.0 S&P 500 (% ) ~ Under Perfornnnce f Over Pertbrrrunce -~ Dec-2008 -(~ Dec-2009 5.00 0.00 c s -590 -a Io9n- 1590 __ _. S9U 10.00 ^ Dana Core Equity • S&P 500 Median ~---~ --- r_ .. 15.00 2090 25.00 30.00 Risk (Standard Dc~~ation % ) Return Standard Deviation -5.02 20.15 _5,63 2 L21 -5.03 2 LOS 35.00 ~ 25.00 :C i'Y. ~ ~ ~ 50.0(1 ~ e ~ • ~ ~., x'~ rte' ~ ` yr~ ^ 75.0(1 0 -- ~ ~ ~ ~ # * ~. ~.. * ~ 5 lon.oo -~-~ r ~ r 3/05 3/06 3/07 3/OK 3/09 12/09 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count ^ Dana Core Equity 5 0 (0%) 4 (RO%) L (20Ro) 0 (0"/0) ~ S&P 500 r 20 0 (0%) 0 (0"/) 13 (65%) 7 (35%) 1 1 15.00 10.00 -~ 0 5.00 e 0 0.00 a" -5.00 - ---~ ~- 5.00 10.00 15,00 20.00 25.00 30.00 Risk (Standa rd Deviation "/o ) Return Standard Deviation ^ Dana Corc Equity N/A N/A • S&P 500 0.42 17.17 Median ].41 1799 1 Tracking l%p Down Sharpe ta R Downside Error 1larkct Markel Alpha IR Ratio e Risk Capture Capture Dana Core 1'yuil}~ 3.60 9R 36 96.55 0.43 0.1(, -0.29 0.9G 15.84 S&P 500 0.00 100.00 100.00 0.00 N/A -0.31 1.00 15.85 t Tracking 11P Dnwn Sharpe ta R Downside Error Market Market Alpha IR Ratio e Risk Capture Capture _ Dana Corc Hquity N/A ti',~ N/A N-A N!A N/A N/A N/A ScecP 500 090 10(1.00 100.00 0.00 Dl/A -(1.07 1.00 12.47 ~~ THE 2, ~ BOGDAHN GROUP Tequesta General Employees' Total Fixed Portfolio December 31, 2009 Market Value Market Value As tit. Net Contributions Distributions F'ecs Expenses Income Capital As of 9/30/2009 Transfers Apprec./ Deprec. 12/31/2009 Total Fixed Portfolio I?C,5 - G6 - -2 -14 9 34 1,359 Market Vahte Market Value As of ivet Contributions Distributions Fees Expenses Income Capital As of 9/30/2009 Transfers Apprec./ Deprec. 12/31/2009 Total Fixed Portfolio I?65 - 66 - -? -14 9 34 1,359 25D0 $ 130.0 20.00 ~ I $120.0 15.00 ~ 10.00 c i. a 5.00-~ $110.0 ^ 0.00 -s.no -- ' ' _ ~ ~ t---- -'- $ I oo.o 1 Oct-2009 1 2 3 4 5 Quarter To Year Vears Vears Years Years Dec-2009 ^ Total Fixed Portfolio 0.49 (52) 11.49 (52) 3.31 (98) 5.70 (7L) GDS (71) 5.59 (72) 4.G6 (R3) ~ Total Fixed Policy 0.31 (6G) 0.31 (66) 5.24 (91) 5.16 B2) 5.90 (73) 5.44 (78) 4.80 (80) $90.0 Median 0.54 0.54 9.63 6.44 6.59 6.09 5.41 -Total Fixed Portfolio ~-Total Fixed Policv 1 1 i' 1 I 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep-2009 .lun-2009 Mar-2009 Deo-200R Sep-2008 .fun-2008 Total Fixed Portfolio 2.93 (98) -0.25 (100) 0.13 (64) 6.26 (14) 0.17 (l0) -1.28 (78) Total Filed Policy 3.25 (93) 1.67 (89) -0.05 (72) 4.R4 (34) -1.19 (45) -1.53 (R9) US Broad Market Cure Fixed Income (SA+CF) Median 4.7(1 3.45 0.45 3.80 -1.39 -0.94 24 ~~ BOGDAHN GROUP 3/04 6/05 9/06 12/07 3/09 12/09 S.o <,, ~ r 7.0 - Pcrtivntuuu S.0 0 i 3.0 ~. ~_ I .0 F' I.0 Tequesta General Employees' Total Fixed Portfolio December 31, 2009 ,t ~ o.oo :; Under P erfm~rmn ce __. .- r --- - - - -~-- 3.0 5.0 7.0 8.0 Total Fixcd Policy(% ) fUnderPerk,rnnnca f-OverPerhrm~nce -~-~lar-2007 10.00 7.50 5.00 0 x_.50 0 0.00 -2.50 -p- Dec-2009 ~ • ^ e A 25.00 ~ ~ • ~ ~ ~ w ~ 50.00 ~ ~ • b • c a. 7 75 00 ': ~•. ~„ .. d ~.. _ ~.'~..~.., ~ ~ +~. ~ 1 00 110 ~-~~ 3/05 3/06 3/07 3/08 .3/09 12/09 Total Period 5-25 25-Median Median-75 75-95 Count Count Count Count ^ Total Fixed Portfolio 12 2 (17"/0) 2 (]7%) 4 (33%) 4 (33%) • Total Fixcd Policy 12 I (R"/) 4 (33"/) 5 (42%) 2 (17%) 1 1 7.50 6.00 4.50 a 3.00 c I.50 5 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 I.50 3.00 450 6.00 7.50 9.00 10.50 Risk (Standard De~~ation %) Risk (Standard Deviation ""/oJ Return Sta ndard Deviafion Roturn Standard Deviation ^ Total Fixed Portfolio 6.05 3.97 ^ Total Fixed Portfolio 4.66 3.51 ~ Total Fixed Policy 5.90 3.80 • Total Fixed Policy 4.80 3.62 Median 6.59 4.21 Median 5.41 3.89 t "tracking t)P Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Caph~re Capture Total Fixed Portfolio I.51 89.88 63.20 L27 0.09 1.08 0.80 1.2(i Total Fixed Policy 0.OU 100.00 100.00 0.00 N/A 090 I.00 L87 t Tracking lip Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total Fixcd Portfolio 1.43 84.68 62.73 0.97 -0.10 0.59 0.76 1.13 Total Fixed Policy O.UO 100.(H) 100.00 U.00 N/A 0.53 L00 I.73 25 ~~ BOGDAHN GROUP Tequesta General Employees' Dana's Fixed Portfolio December 31, 2009 .. t ~ ~ Markc[ Yaluc Capital Market Value As of y`t Contributions Distributions Fces Expenses Income As of 9/30!2009 Transfers Apprec./ Deprec' 12/31/2009 Dana's b'ixcd Portfolio 1,157 -12 66 - - -2 9 30 1,248 • 1 t ~ tt• II' t 1• t• II' btarket Value Capital Market Vab~e As of Tr• nsfers Contributions Distributions Fees Expenses Income Apprec./ Deprec. As of 9/30/2009 12/31/2009 Uana's Fixed Portfolio 1,157 -12 G( - - = 9 30 1,248 25.00 1 2 3 4 5 Year Years Years Years Years ;4 -5.00 I Oct-2009 Quarter To Dec-2009 ^ Dana's Fixed Portfolio 0.49 (~2) 0.49 (52) • Barcap Intermediate U.S. GovcrnmcnUCrcdit 0.31 ((G) 0.31 (G6) Cumulative Performance $ 120.0 $110.0 $ 100.0 3.31 (9R) 5.70 (71) 6.05 (71) 5.59 (72) N/A $90.0 5.24 (91) 5.16 (R2) 5.90 (73) 5.44 l78) 4.65 (83) Dana's Fixed Portfolio 11edian 0.54 0.54 9.63 6.44 6.59 6.09 5.41 --~-•-RarcaplnternrdiatcU.S.Govcrnntnt/Credit ~ 1 / I 1 1 I 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep-2009 .lun-2009 filar-2009 Dec-2008 Sep-2008 .Iun-2008 Dana's Fixed Portfolio 2.93 (9R) -0.25 (100) 0.13 (64) 6.26 (l4) 0.17 (10) -1.28 (78) Darc~ip Intermediate U.S. GovernmentiCredit 3.25 (93) L67 (R9j -0.05 (72) 4.84 (34) -1.19 (45) -1.53 (89) US Broad Market Cure Fixed Income (SA+CF) Median 4.70 3.45 0.45 3.80 -L39 -0.94 ~~. BOGDAHN 26 ~ .. GROUP I2/OS 12/06 12/07 12/08 12/09 7.0 over P crfnrrnancc 6.6 ^ 6.z .: S.R i 5.3 s.0 - - i- - - ~ i ~- 0 5.0 5.4 >.R 6.2 6.G Rarcap Intermediate L'.S. Govermnent/Credit (""/o) f-UnderPerli,rntlnee fOverPeriorn~nce Dec-2008 -0-Dec-2009 10.00 7.5(1 5.00 -1 e 2.so O.oo s` -2.5 (1 -- 2.00 c 25.00 A a ~~ So.oo d a ~ 75.00 0 5 t oo_oo ^~ ~ ~ ~ ~ ~ ~~^ 3.05 3/06 "Ib[al Period ^ Dane s Fixed Portfolio s • Rarcap Intermediate U.S. Government/Credit 20 0 a ~ . - _ r - t- -- --~- 4.00 6.Ull 8.00 10.00 Risk (Standard Deviation'% ) Return ^ Dana's Fixed Portfolio 6.05 • Barcap Intermediate U.S. GovernmenUCredit 5.90 - Median 6.59 ~ O.oo Tequesta General Employees' Dana's Fixed Portfolio December 31, 2009 ,~ ~. Under P erfomnn ce 7.0 12.00 Standard Deviation 3.97 3.R0 4.21 14.00 7.50 6.00 a.s0 3.00 Is0 0.00 I .5 0 5-25 Connt 2 (40%) 0 (0%) 3/07 3/08 3/09 12/09 2~-Median Median-75 75-95 Count Count Count 0 (0%) 3 (60"/0) 0 (0%) 5 (25%) 3 (IS%) 12 (60%) 3.00 4.50 6.00 7.50 Risk (Standard Deviation % ) Return ^ Dana's Fixed Portfolio N/A ~ Barcap Iuermediate U.S. Govemment/Credit 4.65 Median 5.41 9.00 Standard Deviation N/A 3.49 3.R9 10.50 Tracking tip Do`sn Sharpe Downside F,rror Markel Market .Alpha IR Ratio Beta Risk Capture Capture Dana's Fixed Portfolio I.SI 89.RR 63.20 1.27 0.09 I.OR O.RU 1.26 Barcap Intermediate U.S. Govemment/Credit 0.00 100.00 IOQ(10 0.00 N/A 0.90 1.00 1.87 t Tracking lip Down Sharpe Downside Error Market Market :11pha IR Ratio Beta Risk Caphr re Capture Dana's Fixed Portfolio N/A V~:1 N/A VIA N/A N/A N/A N/A Barcap httetmediate U.S. Government/Credit 0.00 10(1,00 100.00 0.00 NlA 0.51 I.00 1.62 ~^ THE 27 ~ ` BOGDAHN GROUP THE BOGDAHN GROUP simplifyi?jg your investment and/fiduciary eh,cisiorts Chicago Orland�� f/1IIXV� t U k c c WIII 1cld Road Suite 200 4 1 V'incI Inoad. Suitc ()UF \VI.,Consin Av c Sllltc I Warrcncillc, Illino]s 005,55 Orlando_ Florida >>�I I VIIl v IUkcc, A\Iscons1n 532U' 8(,(, 4U 71);,