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Home My WebLink AboutDocumentation_Pension General_Tab 03_05/03/2010 Village of Tequesta General Employees' Retirement Plan Preliminary Report 1 st Quarter 2010 THE B OGDAHN GROUP �X' Vif W. [i O (. t) :� ti N (; RU U !'. C:O MM simplifying your iur esnrrPUr and fiduciary drrisinu.c 1St Quarter 2010 Market Environment TrIF. 1 � BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. GROUP The Market Environment Major Market Index Performance Period Ended: March 31, 2010 Quarter Performance • Despite getting off to a rough start in January, the domestic equity markets posted strong results for the 1St quarter of MSCI AC EAFE 1.7% 2010. January's weakness was largely a result of the MSCI SAFE o.9% ry g y MSCI Emerg Mkts 2.5% domestic political rhetoric associated with discussions surrounding increased banking regulations as well as the S &P 500 5.4% potential geopolitical consequences of Greece's troubles on Russell 3000 ZI 5.9% the global economy. As the quarter wore on investors began Russell 1000 16.7% Russell MidCap 8.7% to view the domestic economy's recovery in a more positive Russell 2000 8.9% light, which drove market returns higher. The domestic equity benchmark performance for both the quarter and the trailing Barclays USAgg one -year period was led by the Russell 2000 ( +8.7 %) and Barclays US Govt ,.,% Russell MidCap ( +8.9 %) indices. Barclays MBS ,.5% Barclays Corp IG 2.3% • International markets were also positive for the 1St quarter of 3- Month T -Bill 0.0% 2010. However, due to the strength of the U.S. dollar (USD), 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% the USD returns of each of the foreign benchmarks trailed the respective local currency results for the quarter. In the trailing one -year period, the international markets showed substantial One Year Performance strength, particularly emerging markets, which returned 81.6% MSCI ACWxUS 51.7% for the year. MSCIEAFE 55.2% MSCI Emerg Mkts 81.6% • The Barclays Aggregate index posted a solid return of +1.8% for the quarter. Unlike the prior several quarters, which were S &P 500 49.8% dominated by the performance of credit issues, the quarter's Russell 3000 52.4% Russell 1000 51.5% relatively stable rate environment meant that each segment of Russell MidCap 67.7% the bond index was a positive contributor to broad Russell 2000 52.8% benchmark's total return. However, the outperformance of credit issues is very evident in the one -year results where the Barclays USAgg 7.7% Barclays Aggregate index performance of +7.7% was BarclaysUSGovt o.,% Barclays MBS 5.2% dominated by the Corporate Investment Grade index return of Barclays CorplG 23.8% +23.8% and held back by the -0.1 % return of the Government Index. 3 -Month T -Bill 0.1% -10.0% 10.0% 30.0% 50.0% 70.0% 90.0% 1 1: Source: Barclays Capital, MSCI Capital Markets, Russell Investments 2 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. GRouP The Market Environment Domestic Equity Style Index Performance Period Ended: March 31, 2010 Quarter Performance • The 1St quarter's value outperformance represents a mirror image of the 4th quarter's results for growth. While last 3000 Value 7.0% quarter's growth outperformance was led by strength in 3000Index 5.9% 3000 Growth 4.9 % information technology and weakness in financials, this quarter's value outperformance was a result of strength in 1000 Value 6.6% financials and relative weakness in information technology. 10o0Index 6.7% This quarter's outperformance by value indices is evident 1000 Growth a .6% across the entire capitalization spectrum where the financial sector represents a weight of more than 20% of each of the MidCapValue 9.6% Russell value indices. Midcapindex e.7% MidCap Growth Z7% • The absolute performance differential between value and 2000 Value 10.0% growth index results for the 1St quarter were relatively narrow 20001ndex 9.9% with the 240 basis point return differential between small cap 2000 Growth 7.6% style indices represented the widest performance band. While the return disparity between the various style -based 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% benchmarks is broader over the one -year period, absolute results for all of the equity benchmarks were strong. Much like One Year Performance the 1St quarter of 2010, annual benchmark differentials 3000Value between growth and value indices were driven by a strong 30001ndex 52.4% recovery in financial issues over the period. 3000 Growth 50.5% • Style -based results over the one -year period were once again 1000Value 53.61 heavily impacted by the end -point sensitivity of the four 10'0'0 Index 51.6% quarter calculation. This sensitivity is quantified by the 1000 Growth 49.6% elimination of the 1St quarter of 2009's performance from the the calculation (Russell 1000: - 10.5 %) and the inclusion of the MidCapValue 72.4% MidCap Index $7.7% 1St quarter of 2010's performance (Russell 1000: +5.7 %)• MidCap Growth 63.0% 2000 Value 65.1% 2000 I ndex $2.8% 2000 Growth so.3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% �� Source: Russell Investments TIIE 3 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. GROUP The Market Environment GICS Sector Performance & (Quarter -End Sector Weight) Period Ended: March 31, 2010 ■QTR Russe111000 O 1 -Year • Large cap stock performance was largely positive across the various Global Industry Classification Standard (GICS) sectors Energy (10.7% °'8% 32.7% for the quarter with the exception of the low- weighted Materials (4.0%) 4.2% telecommunication services and utilities sectors, which were 6z.,% mildly negative. Sector positioning will most likely play a large Industrials (10.8 ° i °) 124% 73.5, role in a ortfolio's performance for the quarter, with only four Consumer 11.3% p P q Y 73.0% of the index's ten sectors outpacing +5.7% return of the Consumer Staples (10.7% 6.0% Russell 1000 index. The quarter's performance was led by 36.4% Health Care (12.3 %) 4.3 industrial, consumer discretionary and financial issues, each 36.5% of which posted returns in excess of +10.0 %. Financials (15.6 %) 71.4% 78.6, 2.0% • Reversing last quarter's pullback where it represented the Info Technology (18.7 %) 3.5% 69.0% weakest sector in the index, the financial sector of the Russell Telecom Services (2.8 %) 16.7% 1000 posted a strong +11.4% return for the quarter. Utilities(3.6 %) -3.0% 23.6% Industrials, which factor significantly in both the value and growth benchmarks ( >10% weight) was the Russell 1000 - 20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% index's strongest sector for the quarter with a return of +12 4% ■aTR Russen 2000 01-Year • For the trailing one -year period, each of the ten GICS sectors Energy (5.0% J3, 83.0, posted double -digit performance for the Russell 1000 index. Materials (4.6%) 104.0% In fact, five of the ten sectors returned more than 50.0% for Industrials (15.2% the period. 5a. °% Consumer Disc (15.0 %) 17.9 100.1% • Small cap stock performance was positive across nine of the Consumer Staples (3.1% ae.7 % ten GICS sectors for the quarter. In fact, with the exception of HealthCare(14.3 % ) industrials, which was the strongest sector of the large cap 49.3% Financials (20.9 %) .4% index, the small cap sector performance exceeded each 47.2% ca respective large sector result for the q uarter. Info (2.6% % p 9 p q 9Y (18.0 % ) 72.7% • The one -year results for the Russell 2000 index GICS sectors Telecom Services (0.9% 2.6% 283% were also impressive with the materials and consumer Utilities(3.0 %) 24.6% discretionary sectors posting returns in excess of 100%. 20.0 o.o °i° zo.o °i° ao.o °i° 60.0% so.o °r° 100.0% 120.0 � Source: Thompson Financial "*%, Ttw 4 1 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. N .. GROUP The Market Environment Quality Rankings* Breakdown by Weight and Quarterly Performance Period Ended: March 3 1, 2010 • Within the Russell 1000 index, the performance of each of the Russell 1000 Quality Breakdown Average Weight QTR Return quality segments was spread over a 300 basis point range A+ 9.7% 5.3% during the 1St quarter. "B" quality rated companies, which A 11.7% 7.4% make up 6.5% of the index, posted the strongest quality A- 14.0% 4.5% performance for the quarter with a return of +7.5 %. "A -" B+ 17.7% 5.7% quality rated companies, which make up a larger 14.0% of the B 6.5% 7.5% index, posted the quarter's weakest quality performance with B_ 27.7% 5.2% a return of +4.5 %. C 2.2 o 7 1% D 0.0% 0.0% N/A 0.0% 0.0% Not Rated 10.5% 5.6% Russell 000 Index 100.0% • With nearly 30% of the small cap Russell 2000 index being Russell 2000 Quality Breakdown Average Weight QTR Return classified as "not rated ", drawing sweeping conclusions from A+ 3.0% 9.4% the quality data associated with the small cap index can often A 4.9% 7.7% be misleading. However, since the +8.2% return by these A 0.5% 3.0% "non- rated" companies is similar to the +8.8% posted by the B+ 17.2% 9.2% index, it is reasonable to draw conclusions for the index based B 20.3% 9.3% on the 1St quarter's quality data. With the exception of the B 11.8% 8.1% outlying performance posted by the low- weighted "A-" and C 11.9% 9.8% "N /A" companies, the spectrum of performance for the various D 0.2% 9.5% quality ratings of the Russell 2000 index was a narrow 210 N/A 0.8% 1 19.8% basis points. Not Rated 29.4% 1 8.2% 2000 Russell Index 100.0% Quality Rankings Table Highest High Above Average Average Below Average Lower 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 5 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. GROUP The Market Environment International and Regional Market Index Performance (# Countries) Period Ended: March 31, 2010 ■QTR(USD) Quarter Performance oOTR(Local) ■ International developed market performance for the quarter 1.7 was led by the performance in the Pacific region, which AC World x US (44) 3.6% posted a return of +6.3% in U.S. Dollars (USD). Within the WORLD x US (22) 14% Pacific region, Japan was the standout country with a return of .s % 42% o +8.3% for quarter in USD. Japan's strong performance was EAFE(21) 4.4% enough to propel it past the United Kingdom as the largest Europe(16) -1.7 representative country in international benchmarks. Another 3.6% 6.3% p henomenon visible in the performance of international Pacific (6) 6.0% developed markets during the quarter is the continued Emerging Mkt (22) 2.5% strength of the USD. However, unlike the 4th quarter where EM Europe (5) s.1 i . 1% both the Europe and Pacific regions of the index showed 9.7% weakness against the USD, during the 1st quarter, Europe EM Asia (8) 14% was the sole source of weakness with a return of +3.6% in 6 ' 1 o EM Latin Amer (7) 1.7 i local currency vs. -1.7% in USD. 5.3% -5.0% 0.0% 5.0% 10.0% 15.0% • Emerging markets continued their solid performance during the 1st quarter with a return of +2.5% in USD. Much like el- Year(USD) developed markets, USD returns were muted as the result of One -Year Performance p 01-Year(Local) a strengthening dollar. However, in contrast to the developed 617, markets where Europe represented a drag on the broader AC World US (44) 475% benchmarks, Europe's emerging market countries, which WORLD xUS(22) 56.6% posted a USD return of +6.1 %, were the primary source of 44.6% 2 EAFE (21) 55 performance in the boarder emerging market benchmark. 45.49% Europe (16) 57.2% Despite the strength of the USD over the last two quarters, the so.s% • Pacific (5) 51.5% one -year results of both the broad and regional benchmarks 36.6% show the substantial weakness of the USD over the last year. Emerging Mkt (22) 81.6% 58.4% ■ EM Europe (5) 111.5% In contrast to the domestic indices which were driven by 65.9% performance in the industrial, financial and consumer EM Asia (8) 73.8% discretionary sectors, the GICS sector attribution of both the 56.5% 1st q EM Latin 97.8i EAFE and ACWIxUS benchmarks for the 1 quarter illustrate 602% the largest strength coming from exposure to the information 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% technology sector. r►II. Source: MSC/ Capital Markets 6 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. GROUP The Market Environment U.S. Dollar International Index Attribution & Country Detail Period Ended: M 31, 2010 Country Ending Weight Ending Weight Return Return MSCI-EAFE Ending Weight Ist Qtr Retum 1 -Year Return 7a an 22.2% 15.5% 8.3% 38.0% United Kingdom 21.0% 14.7% - 0.6% 59.6% Energy 8.0% -3.5% 38.7% France 10.6% 7.4% -3.9% 52.4% Materials 10.5% 2.4% 84.0% Australia 8.7% 6.0% 4.2% 87.1% Industrials 11.8% 5.8% 63.6% Switzerland 7.9% 5.5% 4.4% 55.5% Germany 7.9% 5.5% -2.6% 53.1% Consumer Discretionary 9.9% 3.1% 54.6% Spain 3.9% 2.7% -15.2% 50.6% Consumer Staples 10.0% 2.2% 55.2% Italy 3.2% 2.3% -7.3% 49.4% Sweden 2.8% 1.9% 7.7% 90.6% Health Care 8.1% -1.2% 37.1% Netherlands 2.6% 1.8% -1.0% 69.3% Financials 25.3% -0.7% 71.7% Hong Kong 2.4% 1.7% 2.4% 64.8% Singapore 1.5% 1.0% -1.3% 88.9% Information Technology 5.3% 11.9% 52.1% Finland 1.2% 0.9% 12.4% 62.2% Telecommunication Services 5.5% -4.3% 32.0% Belgium 1.0% 0.7% -1.0% 64.1% Utilities 5.6% -4.0% 27.4% Denmark 0.9% 0.7% 10.0% 69.5% Norway 0.7% 0.5% -6.4% 71.0% Total 1 00.0% r Greece 0.4% 0.3% - 13.2% 24.5% Austria 0.3% 0.2% -1.2% 55.7% Portugal 0.3% 0.2% - 10.3% 37.9% Ireland 0.3% 0.2% -0.2% 23.6% New Zealand 0.1% 0.1% -3.7% 50.2% Total EAFE Countries rr Canada 1 1 7.6% 1 6.2% 1 72.9% MSCI - ACW[xUS Ending Weight Ist Otr Return I ear Return Total Developed Countries 77.3% 1.4 66.8 China 4.0% -1.6% 58.0% Energy 10.8% -2.1% 50.7% Brazil 3.7% -0.1% 103.0% Materials 12.2% 3.2% 84.7% Korea 2.9% 4.0% 79.1% Taiwan 2.4% -3.8% 60.1% Industrials 10.2% 5.8% 65.5% India 1.7% 4.9% 115.9% Consumer Discretionary 8.6% 3.0% 61.6% South Africa 1.6% 4.6% 71.8% Consumer Staples 8.5% 2.4% 58.6% Russia 1.5% 6.8% 106.5% Mexico 1.0% 7.8% 96.3% Health Care 6.2% 0.0% 38.7% Israel 0.7% 10.0% 60.9% Financials 25.9% 1.2% 79.8% Malaysia 0.6% 9.1% 71.1% Information Technology 7.0% 6.5% 64.0% Indonesia 0.5% 10.0% 147.6% Turkey 0.3% 4.0% 136.4% Telecommunication Services 6.0% -1.9% 35.5% Thailand 0.3% 13.3% 111.3% Utilities 4.8% -2.9% 32.5% Chile 0.3% 0.3% 64.8% Total Poland 0.3% 4.2% 116.7% 1 0 0 .0 % Colombia 0.2% 10.4% 126.4% Hungary 0.1% 12.6% 181.0% Peru 0.1% 0.6% 62.5% Egypt 0.1% 11.9% 76.5% Philippines 0.1% 5.2% 65.6% Czech Republic 0.1% -0.2% 51.2° Morocco 0.0% 6.7% 11.1% Total Emerging Countries 22.7% 2.6% 81.6% Total ACWIxUS Countries 1 00 . 0 % � Source: MSC/ Capital Markets, &Franklin ? � emp /eton 7 � BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. GROUP The Market Environment Domestic Credit Sector & Broad Market Maturity Performance Period Ended: March 31, 2010 Quarter Performance • While several quarters during 2009 were marked by substantial credit compression that benefited lower quality AAA 2.0% investments, the 1st quarter of 2010 represented a more stable AA 2.1 environment. This stability is particularly evident in the A 2.4% narrower 280 basis point performance differential between BBB 3.6% AAA and <BBB rated debt. This is a substantial change from <BBB 4.8% the last quarter where the return differential between AAA and Govt <BBB rated debt was a much wider 680 basis points. Given the quarter's steady rate environment, the higher coupons Mort associated with lower- quality debt as well as the higher yields G /M /C =Broad Market (Government +Mortgage +Corporate) offered on longer -term bonds were the primary drivers of total 1- 3yrG /M /C return performance. 1- 5yrG/M/C 1 -10yr G /M /C 1.7% 10 +yr G /M /C 1.9% 0.0% 2.0% 4.0% 6.0% 8.0% • The results of the bond market summarized in the one -year oneyear Performance performance chart show what can only be characterized as an "extreme" performance band between the various bond index AAA 7.9% segments. The Government bond index, which did not benefit AA «'' 16.7% from 2009's credit compression, was at the low end of the A 22.3% performance band with a one -year return of -0.4 %. In BBB 32.9% contrast, high yield securities, which benefited from both <BBB 67.2% strengthening credit market conditions and higher coupon Govt -0.4% rates, posted a return of +57.2% for the year. Mort 5.2 1 -3yr G /M /C 4.7 1 -5yr G /M /C 6.4% 1 -10yr G /M /C 6.6% 10 +yr G /M /C 10.0% - 10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% T1 P. Source: Merrill Lynch Index System $ � BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. GROUP The Market Environment Market Rate & Yield Curve Comparison Period Ended: March 3 1, 2 2009 -2010 Market Rates • During the quarter, the Fed reiterated that rates will remain 7.00 low for an extended period of time. While there is no shortage — Fed Funds Rate —TED Spread —3 -Month Libor of opinion, many market observers feel that the Fed will not 600 — BA4/10yrSpread — 1 — 10yrTIPs raise rates before the end of the year due to muted growth, low inflationary pressures and high unemployment. While 5.00 several readings indicate that the domestic economy has largely stabilized, there are fewer indicators of the strong 4.00 demand or organic growth necessary to drive the economy forward without substantial government stimulus. The current 3.00 economic weakness is most evident in many small and mid sized companies, which still face tight credit conditions and 2.00 slow growth. 1. • Although there were a number of economic and geopolitical events during the quarter that could have derailed the 0.00 recovery in the credit markets, the various indicators reported Mar -09 Jun -09 Sep-09 Dec -09 Mar -10 in the "Market Rates" chart show a relatively stable rate environment during the quarter. I Treasury Yieia curve 6.00 • In contrast to prior quarters, the Treasury yield curve 3/31/2009 +9/3012009 - -b-12/31/2009 o 3/31/2010 remained largely unchanged during the 1St quarter. For 5.00 example, the quarter -end yield on the benchmark 10 -year Treasury (3.84 %) only changed by 1 basis point versus the year -end yield (3.85 %). As a result of this rate stability, the 4.00 0 - yield curve remains extremely steep with a 2- year /10 -year spread of 282 basis points. 3.00 2.00 1.00 0.00 1 mo 3mo 6mo 1 yr 2yr 3yr Syr Tyr 10yr 20yr 30yr IIII Source: Mortgage -X.com , US Department of Treasury & St. Louis Fed 9 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1st when peergroups are updated and finalized. (''ROUP The Market Environment What a Difference a Year Makes Period Ended: March 31, 2010 1 -Year Return as of 3/31/09 1 -Year Return as of 3/31110 .46.2% MSCI ACWxUS 61.7% .46.2% MSCI EAFE 55.2% -46.9% 1 MSCI Emerg Mkts 81.6% -38.1% S &P 500 49.8% -38.2% Russell 3000 52.4% -38.3% Russell 1000 51.6% -40.8% Russell MidCap 67.7% -37.6% Russell 2000 s2.8% Barclays US Agg 7.7% 7.0% Barclays US Govt -0.1% 8.1% Barclays MBS s.z% -5.2% Barclays Corp IG 20.8% 1.1% 3 -Month T -Bill 0.1% - 60.0 % -40.0% -20.0% 0.0% 20.0% - 20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% • It would be difficult to identify another consecutive two- While it is easy to look in a rearview mirror to see the year period with more diametrically opposed performance logic of diversifying a portfolio across several strategies that the one -year periods ending 3/31/09 and 3/31/10. and asset classes, it is important to remember that the Over this period the average performance differential for greatest investment opportunity often exists when the risk the international and domestic equity benchmarks was appears to be the greatest. The best lesson for long -term 112.6% and 95.4% respectively. investors to take from the performance disparity of last two -years is do their best not to anticipate or react to • Fixed income, which typically offers a high degree of short-term market performance but rather to maintain stability year- over -year, had an average performance focus on their long -term strategic plans. spread over the two -year period of 10.2% for the benchmarks shown. This differential was largely due to the 26.0% return differential realized in investment grade debt over these two years. Source: Barclays Capital, MSCI Capital Markets, Russell Investments Tl I 10 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1st when peergroups are updated and finalized. GROUP anoxj 'pazileug pue palepdn aje sdna6jaad uagm Is AeW punae jo uo paddigs pue panssi aq pion spodai mGN 'sliodai tieuiwilaJd itil �. Tequesta General Employees' Retirement Plan March 31, 2010 Allocati Asset By of 1 II' B December 31, 2009: $1,358,762 March 31, 2010 : $1,448,749 Segments Market Value Allocation Segments Market Value Allocation ■ Domestic Equity 695,526 51.2 ■ Domestic Equity 734,052 50.7 ❑ International Equity 98,430 7.2 ❑ International Equity 135,275 9.3 ■ Fixed Income 478,698 35.2 ■ Fixed Income 537,678 37.1 ■ Cash Equivalent 86,109 6.3 ■ Cash Equivalent 41,743 2.9 TH F. 12 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. GROUP Tequesta General Employees' Retirement Plan March 31, 2010 Asset Allocation By Dec II` Asset Allocation By Q uarter December 31, 2009 : $1,358,762 March 3l, 2010 : $1,448,749 Market Value Allocation Market Value Allocation ■ Dana Balanced Portfolio 1,247,761 91.8 ■ Dana Balanced Portfolio 1,305,253 90.1 El Dana International Equity 100,383 7.4 El Dana International Equity 136,618 9.4 ■ R &D 10,618 0.8 ■ R &D 6,878 0.5 TilE 13 �� BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. GROUP Tequesta General Employees' Retirement Plan Asset Allocation vs. Target Allocation As of March 31, 2010 March 31, 2010 Cash Equivalent- Domestic Equity rO7 International Equity -0.7% Domestic Fixed Income -2.9% - 10.0 -8.0% -4.0% 0.0% 4.0% 8.0% 10.0 Allocation Differences March 31, 2010 Market Value Allocation Target Cash Equivalent 27,537 1.9 - Domestic Equity 734,052 50.7 50.0 International Equity 135,275 9.3 10.0 Domestic Fixed Income 537,678 37.1 40.0 Total Fund 1,448,749 99.0 100.0 THE 14 rl BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. (` ROUP Tequesta General Employees' Retirement Plan Asset Allocation History As of March 31, 2010 Asset Allocation History by Portfolio ' II' I' 1 II' I I Dana Balanced Portfolio 1,001,364 98.84 1,111,782 99.11 1,157,325 91.47 1,247,761 91.83 1,305,253 90.10 Dana International Equity - - - - 95,998 7.59 100,383 7.39 136,618 9.43 R &D 11,737 1.16 9,981 0.89 11,872 0.94 10,618 0.78 6,878 0.47 Total Fund 1,013,100 100.00 1,121,764 100.00 1,265,195 100.00 1,358,762 100.00 1,448,749 100.00 Asset Allocation History by Segment 100.0 80.0 60.0 U 40.0 0 d 20.0 0.0 8/07 11/07 2/08 5/08 8/08 11/08 2/09 5/09 8/09 11/09 3/10 ■ Domestic Equity International Equity 0 Fixed Income ■ Cash Equivalent 15 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. (`ROUP 16 Preliminary reports. New reports will be issued and shipped on or around May 1st when peergroups are updated and finalized. Tequesta General Employees' Retirement Plan Financial Reconciliation As of March 31, 2010 Financial Reconciliation Quarter to Date Market Value Net Capital Market Value As of As of Transfer% Contributions Distributions Fees Expenses Income Deprec. ��l 12/31/2009 3/31/2010 Dana Balanced Portfolio 1,247,761 46,000 54,905 - - -724 8,607 Apprecd 40,704 1,305,253 Dana International Equity 100,383 34,000 - - - -130 310 2,056 136,618 R &D Account 10,618 12,000 - - -1,839 - 13,902 - - 6,878 Total Fund 1,358,762 - 54,905 - -1,839 - 14,756 8,916 42,760 1,448,749 Financial Reconciliation Fiscal Year to Date Market Value Net Capital Market Value As of Contributions Distributions Fees Expenses Income As of 9/30/2009 Transfers Apprec./ Deprec. 3/31/2010 Dana Balanced Portfolio 1,157,325 - 58,000 121,321 - - -2,909 17,163 70,353 1,305,253 Dana International Equity 95,998 34,000 - - - -340 735 6,225 136,618 R &D Account 11,872 24,000 - - -3,569 - 25,425 - - 6,878 Total Fund 1,265,195 - 121,321 - -3,569 - 28,674 17,898 76,578 1,448,749 17 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May Ist when peergroups are updated and finalized. r'ROUP Tequesta General Employees' Retirement Plan Comparative Performance Trailing Returns As of March 31, 2010 Quarter To Year Years Years Years Inception Date Total Fund (Net) 3.57 (84) 6.84 (86) 23.06 (98) 0.69 (44) 2.69 (54) 4.86 (17) 4.03 N/A 11/01/2000 Total Fund Policy 3.48 (86) 7.31 (64) 30.66 (58) 0.08 (58) 2.37 (60) 3.44 (80) 3.32 N/A Difference 0.09 -0.47 -7.60 0.61 0.32 1.42 0.71 All Public Plans -Total Fund Median 3.95 7.49 31.54 0.36 2.80 4.19 N/A Total Fund (Gross) 3.71 7.13 23.54 0.91 2.90 5.05 4.21 11/01/2000 Total Fund Policy 3.48 7.31 30.66 0.08 2.37 3.44 3.32 Difference 0.23 -0.18 -7.12 0.83 0.53 1.61 0.89 Dana Core Equity 5.77 (33) 11.63 (55) 44.42 (77) 4.27 (71) -0.55 (77) N/A 1.58 (68) 11/01/2005 S &P 500 5.39 (52) 11.75 (53) 49.77 (41) -4.17 (68) -0.39 (73) 1.92 (79) 1.43 (77) Difference 0.38 -0.12 -5.35 -0.10 -0.16 N/A 0.15 US Core/Large Cap Equity (SA +CF) Median 5.40 11.79 48.64 -3.67 0.06 2.74 2.03 Dana Intl Portfolio 0.39 (85) 5.21 (38) N/A N/A N/A N/A 26.84 (22) 07/01/2009 MSCI EAFE Index 0.94 (72) 3.18 (77) 55.20 (45) -6.55 (56) -0.38 (58) 4.24 (69) 23.33 (67) Difference -0.55 2.03 N/A N/A N/A N/A 3.51 International Core Equity (SA +CF) Median 1.55 4.37 54.45 -5.87 -0.07 5.43 24.53 Dana Fixed Income 1.89 (48) 2.38 (60) 5.12 (94) 6.17 (72) 6.18 (74) N/A 5.71 (79) 11 /01 /2005 Barcap Intermediate U.S. Government /Credit 1.54 (78) 1.85 (82) 6.92 (79) 5.88 (81) 5.95 (84) 5.16 (87) 5.53 (87) Difference 0.35 0.53 - 1.80 0.29 0.23 N/A 0.18 US Intermediate Fixed Income SA +CF) Median 1.86 2.53 8.95 6.72 6.63 5.78 6.22 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Dana's inception date is 10 -13 -2005. Dana Core Equity contains -II international prior to 7/1/2009. /� �$ � BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1st when peergroups are updated and finalized. GROUP Tequesta General Employees' Retirement Plan Comparative Performance Fiscal Year Returns As of March 31, 2010 Oct-2009 Oct-2008 Oct-2007 Oct-2006 Oct-2005 Oct-2004 Oct-2003 To To To To To To 10 Mar-2010 Sep-2009 Sep-2008 Sep-2007 Sep-2006 Sep-2005 Sep-2004 Total Fund (Net) 6.84 (86) 1.64 (46) -10.34 (9) 11.64 (92) 10.35 (23) 11.09 (64) 2.08 (100) Total Find Policy ' ' 1 (64) 0.48 (62) -12.46 (40) 12.02 (89) 7.88 (67) 8.37 (94) 2.03 (100) Difference -0.47 1.16 2.12 -0.38 2.47 2.72 0.05 All Public Plans -Total Fund Median 7.49 1.30 -13.40 14.38 8.70 12.35 11.14 Total Fund (Gross) 7.13 1.76 -10.10 11.64 10.67 11.09 2.70 Total Fund Policy 7.31 0.48 -12.46 12.02 -7 `x 8.37 2.03 Difference -0.18 1.28 2.36 -0.38 2.79 2.72 0.67 Dana Core Equity 11.63 (55) -8.19 (75) -19.68 (35) 16.70 (49) N/A N/A N/A S &P 500 11.75 (53) -6.91 (60) -21.98 (65) 16.44 (58) 10.79 (51) 12.25 (80) 13.87 (59) Difference -0.12 -1.28 2.30 0.26 N/A N/A N/A US Core/Large Cap Equity (SA +CF) Median 11.79 -6.50 -21.22 16.61 10.80 14.34 14.22 Dana Intl Portfolio 5.21 (38) N/A N/A N/A N/A N/A N/A MSCI EAFE Index 3.18 (77) 3.80 (44) -30.13 (44) 25.38 (72) 19.65 (54) 26.32 (68) 22.52 (46) Difference 2.03 N/A N/A N/A N/A N/A N/A International Core Equity (SA +CF) Median 4.37 3.11 -30.48 27.01 19.76 27.73 21.73 Dana Fixed Income 2.38 (60) 9.24 (83) 4.47 (29) 5.25 (74) N/A N/A N/A Barcapinternediate U.S. Government/Credit 1.85 (82) 10.01 (77) 3.13 (52) 5.43 (56) 3.54 (93) 1.48 (95) 2.66 (66) Difference 0.53 -0.77 1.34 -0.18 N/A N/A N/A US Intermediate Fixed Income SA +CF Median 2.53 11.45 3.22 5.47 3.90 2.07 2.87 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Dana's inception date is 10 -13 -2005. Dana Core Equity contains international prior to 7/1/2009. 19 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. GROUP Tequesta General Employees' Retirement Plan Total Fund (Net) March 31, 2010 Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec // Deprec. As of 12/31/2009 3/31/2010 Total Fund (Net) 1,359 - 55 -2 -15 9 43 1,449 Financial Rec onciliation tt II' To March 31 20 Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income A 1 P De rec. rec./ As of 9/30/2009 P 3/31/2010 Total Fund (Net) 1,265 121 -4 -29 18 77 1,449 'Peer GroupAnalysis - All Public Plans-Total Fund Cununulative Perforniance 60.00 $150.0 $143.6 45.00 $140.0 30.00 $134.6 e 15.00 $130.0 E d � 0.00 �� ®® $120.0 -15.00 -30.00 -- 1 Oct -2009 1 2 3 4 5 $110.0 j Quarter To Year Years Years Years Years Mar -2010 ■ Total Fund (Net) 3.57 (82) 6.84 (85) 23.06 (98) 1.38 (29) 0.69 (45) 2.69 (56) 4.86 (14) • Total Fund Policy 3.48 (85) 7.31 (62) 30.66 (54) -0.13 (67) 0.08 (61) 2.37 (63) 3.44 (77) $100.0 12/00 12/02 12/04 12/06 12/08 3/10 Median 3.94 7.45 31.05 0.44 0.45 2.83 4.13 -Total Fund (Net) -- Total Fund Policy C ornparative P erforniance 1 1 1 l 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Total Fund (Net) 3.16 (77) 8.80 (92) 5.86 (92) -3.84 (17) -8.23 (7) -5.33 (9) Total Fund Policy 3.70 (33) 10.56 (67) 10.13 (56) -6.51 (70) -11.73 (38) -5.50 (13) All Public Plans -Total Fund Median 3.39 11.48 10.59 -5.70 -12.49 -7.59 �a!!** T Ht. 20 � BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. GROUP Tequesta General Employees' Retirement Plan Total Fund (Net) March 31, 2010 3 Vr Rolling tln(ler/Over Perforinance - 5 1 ears �3 1 r Rollino Percentile Rankino 5 Years 20.0 Over 0.00 Perfmance 0 0 12.0 � e 25.00 � IN �. 4.0 e to: 50.00 111 I IN 0 0 Z -4.0 y e 75.00 w -12.0- Under Y • • e Perbtmance 100.00 F -20,0 6/05 6/06 6/07 6/08 6/09 3/10 -20.0 -12.0 -4.0 4.0 12.0 20.0 Total Period 5-25 25- Median Median -75 75-95 Total Fund Policy ( %) Count Count Count Count ■ Total Fund (Net) 20 3 (15 %) 9 (45 %) 2 (10 %) 6 (30 %) f Over Perfornunce -*- lun -2005 Mar -2010 • Total Fund Policy 20 0 (0 %) 1 (5 0 /6) 6 (30 %) 13 (65 %) 3.00 7.50 L50 6.00 0.00 4.50 e � -1.50 a 3.00 r w -3.00 1.50 rx a -4.50 1 0.00 9.00 10.50 12.00 13.50 15.00 16.50 18.00 7.50 9.00 10.50 12.00 13.50 15.00 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation ■ Total Fund (Net) 0.69 10.11 ■ Total Fund (Net) 4.86 8.38 • Total Fund Policy 0.08 12.41 • Total Fund Policy 3.44 9.97 - Median 0.45 12.25 - Median 4.13 9.91 Hist Tracking Up Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total Fund (Net) 3 S 1 85.80 82.95 0.52 0.10 -0.07 0.79 7.83 Total Fund Policy 0.00 100.00 100.00 0.00 N/A -0.09 1.00 9.61 Hist Tracking tip Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total Fund (Net) 3.43 92.76 78.80 2.01 0.35 0.27 0.79 6.19 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 0.11 1.00 7.52 THE 21 /7 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1st when peergroups are updated and finalized. (''W -1 TP Tequesta General Employees' Retirement Plan Dana Core Equity March 31, 2010 Financial Reconciliation Market Value Market Value Transfers A As of Net Contributions Distributions Fees Expenses Income Capital c.e As of 12/31/2009 pprec/ Dprcc' 3/31/2010 Dana Core Equity 1,248 -46 55 -1 9 41 1,305 Financial Rec onciliatio n / tt II' To March 31, 2010 Market Value Market Value As of Net Contributions Distributions Fees Expenses Income Capital Market of 9/30/2009 Transfers Apprec/ Deprec' 3/31/2010 Dana Core Equity 1.157 -58 121 -3 17 70 1,305 :Peer 1 1 Eq uity $145.0 80.00 60.00 $130.0 40.00 \ $115.0 e e i 20.00 a ® $ 1 00.0 0.00- ®® $85.0 -20.00 1 Oct -2009 1 2 3 4 5 $70.0 Quarter To Year Years Years Years Years Mar -2010 ■ Dana Core Equity 5.77 (33) 11.63 (55) 44.42 (77) -3.56 (64) -4.27 (71) -0.55 (77) N/A • S &P 500 5.39 (52) 11.75 (53) 49.77 (41) -3.71 (70) -4.17 (68) -0.39 (73) 1.92 (79) $55.0 12/05 12/06 12/07 12/08 3/10 Median 5.40 11.79 48.64 -2.91 -3.67 0.06 2.74 -Dana Core Equity -S&P 500 C omparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun-2009 Mar -2009 Dec -2008 Sep -2008 Dana Core Equity 5.55 (69) 13.29 (84) 14.19 (71) -8.59 (29) -22.36 (68) -9.86 (66) S &P 500 6.04 (48) 15.61 (38) 15.93 (41) -11.01 (69) -21.94 (60) -8.37 (41) US Core/Large Cap Equity (SA+CF) Median 5.99 15.27 15.56 -10.44 -21.66 -8.96 THE 22 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1st when peergroups are updated and finalized. (`ROUP Tequesta General Employees' Retirement Plan Dana Core Equity March 31, 2010 4.0 0.00 2.0- Over P erbnrence J9 25.00 -3.0 C e u 50.00 -8.0 w 75.00 • i , -13.0 o - U Under a m Perbnnce 100.00 m q -18.0 1 6/05 6/06 6/07 6/08 6/09 3/10 -18.0 - 13.0 -8.0 -3.0 2.0 4.0 Total Period 5-25 25- Median Median -75 75-95 S&P 500( %) Count Count Count Count ■ Dana Core Equity 6 0 (0 %) 4 (67 %) 2 (33 %) 0 (0 %) -W Under Pei fornvuue f OverPerfonnance -A-Dec -2008 ♦Mar-2010 • S &P 500 20 0 (0 %) 0 (0 %) 14 (70 %) 6 (30 %) 1 10.00 15.00 5.00 10.00 0.00 e e 5.00 -5.00 v -10.00 0.00 d C C 15.00 -5.00 0.00 10.00 20.00 30.00 40.00 50.00 0.00 10.00 20.00 30.00 40.00 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation ■ Dana Core Equity -4.27 20.37 ■ Dana Core Equity N/A N/A • S &P 500 -4.17 21.48 • S &P 500 1.92 17.25 - Median -3.67 21.25 - Median 2.74 17.16 Historical Tracking Up Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Dana Core Equity 3.53 97.50 98.26 -0.24 -0.05 -0.21 0.97 16.01 S &P 500 0.00 100.00 100.00 0.00 N/A -0.20 1.00 15.94 Tracking Up Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Dana Core Equity N/A N/A N/A N/A N/A N/A N/A N/A S &P 500 0.00 100.00 100.00 0.00 N/A 0.03 1.00 12.51 23 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1st when peergroups are updated and finalized. GROUP 24 Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. Tequesta General Employees' Retirement Plan Dana Int'1 March 31, 2010 Financial Reconciliati Q uarter Market Value Market Value Net Capital As of Transfers Contributions Distributions Fees Expenses Income Apprec./ Deprec. As of 12/31/2009 3/31/2010 DanaInfl 100 34 - 2 137 Financial Reconciliation Oct ober III T o March 31, 201 Market Value Net Capital Market Value As of Contributions Distributions Fees Expenses Income As of 9/30/2009 Transfers Apprec./ Deprec. 3/31/1010 Dana Int'l 96 34 1 6 137 Gr oup Peer 1 I 1 Perfo rmance S130.0 80.00 $126.8 60.00 $123.3 40.00 $120.0 -- 20.00- E a 0.00 -20.00 $110.0 -40.00 1 Oct -2009 1 2 3 4 5 Quarter To Year Years Years Years Years Mar-2010 / ■ Dana Int'l 0.39 (85) 5.21 (38) N/A N/A N/A N/A N/A • EAFE 0.94 (72) 3.18 (77) 55.20 (45) -8.62 (51) -6.55 (56) -0.38 (58) 4.24 (69) $100.0 - - - -i -- 6/09 9/09 1209 3/10 Median 1.55 4.37 54.45 -8.61 -5.87 -0.07 5.43 -Danalnt'l -EAFE C omparative 1 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep4009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Dana Intl 4.80 (15) 20.56 (23) N/A N/A N/A N/A EAFE 2.22 (73) 19.52 (36) 25.85 (36) -13.85 (69) -19.90 (43) -20.50 (29) International Core Equity (SA+CF) Median 3.11 19.11 23.96 -13.08 -20.23 -21.89 THE 25 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1st when peergroups are updated and finalized. �`nOT p Tequesta General Employees' Retirement Plan Dana's Fixed Portfolio March 31, 2010 Financial Rec onciliation Q uarter Market Value Market Value As of Net Contributions Distributions Fees Expenses Income Capital Market of 12/31/2009 Transfers Apprecd Deprec. 3/31/2010 Dana's Fixed Portfolio 1,248 -46 55 -1 9 41 1,305 Financial Rec onciliation October II' To March 31 2010 Market Value Market Value As of Net Contributions Distributions Fees Expenses Income ��•rPmtal As of 9/30/2009 Transfers Apprec./ Deprec. 3/31/2010 Dana's Fixed Portfolio 1,157 -58 121 -3 17 70 1,305 Peer GI-oupAllalysis - t's Intermediate Fixed Income (SA+CF) Cumulative Perf $130.0 22.50 $126.7 125 5 18.00 $120.0 13.50 e 9.00 E • � ®® $110.0 a.so 0.00 $1 00.0 -4.50 1 Oct -2009 1 2 3 4 5 Quarter To Year Years Years Years Years Mar -2010 ■ Dana's Fixed Portfolio 1.89 (48) 2.38 (60) 5.12 (94) 5.17 (74) 6.17 (72) 6.18 (74) N/A $90.0 • Barcap Intermediate U.S. Government/Credit 1.54 (78) 1.85 (82) 6.92 (79) 4.41 (88) 5.88 (81) 5.95 (84) 5.16 (87) 12/05 12/06 12/07 12/08 3/10 Dana's Fixed Portfolio Median 1.86 2.53 8.95 5.87 6.72 6.63 5.78 -- Barcap Intermediate U.S. Govemment /Credit P erformance Cornparative 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun-2009 Mar -2009 Dec -2008 Sep -2008 Dana's Fixed Portfolio 0.49 (59) 2.93 (82) -0.25 (98) 0.13 (72) 6.26 (7) 0.17 (14) Barcap Intermediate U.S. Government/Credit 0.31 (81) 3.25 (68) 1.67 (75) -0.05 (81) 4.84 (34) -1.19 (52) US Intermediate Fixed Income (SA+CF) Median 0.59 3.69 2.65 0.73 4.22 -1.17 7"' THE 26 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. GROUP Tequesta General Employees' Retirement Plan Dana's Fixed Portfolio March 31, 2010 Rankin 3 1 Rolling Percentile 7.0 Over 0.00 Performance 6.6 ■ 25.00 a 6.2 o u 50.00 • 0 5.8 • • 6. a 75.00 ON 5.4 Under CZ ��•�•� H Perlatmance 100.00 - r - e 5.0 6/05 6/06 6/07 6/08 6/09 3/10 C 5.0 5.4 5.8 6.2 6.6 7.0 Total Period 5 -25 25- Median Median -75 75-95 Barcap Intermediate U .S.Government /Credit(' %) - Count Count Count Count ■ Dana's Fixed Portfolio 6 2 (33 %) 0 (0 %) 4 (67 %) 0 (0 %) f Under Performance f Over Performance -A- Dec -2008 Mar -2010 • Barcap Intermediate U.S. Govemmnent /Credit 20 0 (0 %) 2 (10 %) 10 (50 %) 8 (40 %) Peer Grou Gro 10.50 -- 8.00 9.00 7.00 7.50 6.00 e 6.00 e 5.00 4.50 E 3.00 4.00 1.50 3.00 -� 2.00 4.00 6.00 8.00 1000 12.00 1.50 3.00 4.50 6.00 7.50 9.00 Risk (Standard Deviation %) Risk (Standard DeviationA) Return Standard Deviation Return Standard Deviation ■ Dana's Fixed Portfolio 6.17 3.98 ■ Dana's Fixed Portfolio N "A N \ • Barcap Intermediate U.S. Government/Credit 5.88 3.80 • Barcap Intermediate U.S. Government /Credit 5.16 337 - Median 6.72 3.84 - Median 5.78 3.44 Hist Tracking Up Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Dana's Fixed Portfolio 1.52 90.29 60.99 1.42 0.17 1.24 0.80 1.26 Barcap Intermediate U.S. Government/Credit 0.00 100.00 100.00 0.00 N/A 1.01 1.00 1.87 Tracking 11P Down Sharpe Downside Error Market Market Alpha iR Ratio Beta Risk Capture Capture Dana's Fixed Portfolio N/A N/A N/A N/A N/A N/A N/A N/A Barcap Intermediate U.S. Government/Credit 0.00 100.00 100.00 0.00 N/A 0.68 1.00 1.59 'I' F. 27 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1st when peergroups are updated and finalized. (-`ROUP Tequesta General Employees' Retirement Plan Benchmark History As of March 31, 2010 Total Fund Policy Total Fixed Income Polic Allocation Mandate Weight (%) Allocation Mandate Weight Effective Date: Jan -1978 Effective Date: Feb -2004 Citigroup 3 Month T -Bill 100.00 Barclays Capital U.S. Government /Credit 100.00 Effective Date: Jan -2004 Effective Date: Oct -2005 S &P 500 Index 60.00 Barclays Capital Intermediate U.S. Government /Credit 100.00 Citigroup 3 Month T -Bill 20.00 Barclays Capital U.S. Government /Credit 20.00 Effective Date: Oct -2005 S &P 500 Index 60.00 Barclays Capital Intermediate U.S. Government /Credit 40.00 Effective Date: Dec -2009 S &P 500 Index 50.00 Barclays Capital Intermediate U.S. Government /Credit 40.00 MSCI EAFE 10.00 28 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. GROUP Statistics Definitions Statistics Description Return -- Compounded rate of return for the period. Standard Deviation -- A statistical measure of the range of a portfolio's performance, the variability of a return around its average return over a specified time period. Sharpe Ratio — Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is the absolute rate of return per unit of risk. The higher the value, the better the product's historical risk - adjusted performance. Alpha -- A measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta. It is a measure of the portfolio's historical performance not explained by movements of the market, or a portfolio's non - systematic return. Beta -- A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of a portfolio's non - diversifiable or systematic risk. R- Squared -- The percentage of a portfolio's performance explained by the behavior of the appropriate benchmark. High R- Square means a higher correlation of the portfolio's performance to the appropriate benchmark. Treynor Ratio -- Similar to Sharpe ratio, but focuses on beta rather than excess risk (standard deviation). Represents the excess rate of return over the risk free rate divided by the beta. The result is the absolute rate of return per unit of risk. The higher the value, the better the product's historical risk - adjusted performance. Downside Risk -- A measure similar to standard deviation, but focuses only on the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. The higher the factor, the riskier the product. Tracking Error — A measure of the standard deviation of a portfolio's performance relative to the performance of an appropriate market benchmark. Information Ratio -- Measured by dividing the active rate of return by the tracking error. The higher the Information Ratio, the more value -added contribution by the manager. Consistency -- The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. The higher the consistency figure, the more value a manager has contributed to the product's performance. Excess Return -- Arithmetic difference between the managers return and the risk -free return over a specified time period. Active Return -- Arithmetic difference between the managers return and the benchmark return over a specified time period. Excess Risk -- A measure of the standard deviation of a portfolio's performance relative to the risk free return. 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. Tl u 29 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1 st when peergroups are updated and finalized. GROUP Village of Tequesta General Employees' Retirement Plan Compliance Checklist as of March 31, 2010 Total . No 1. The Total Plan return equaled or exceeded the 7.5% actuarial earnings assumption over the trailing three and five year periods. ✓ 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ Equity Compliance: Yes No N/A 1. Total equity returns meet or exceed the benchmark over the trailing three and five year periods. ✓ 2. Total equity returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 3. The total equity allocation was less than 70% of the total plan assets at market. ✓ 4. Total foreign equity was less than 25% of the total plan assets at market. ✓ Fixed Income Compliance: Yes No N/A 1. Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. ✓ 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 3. All fixed income investments rated investment grade or better ✓ 'Manager Compliance: Dana DEQ Dana IEQ Da na FX 1. Manager outperformed the index over the trailing three and five year periods. ✓ ✓ ✓ 2. Manager ranked within the top 40th percentile over trailing three and five year periods. ✓ ✓ ✓ 3. Less than four consecutive quarters of under performance relative to the benchmark. ✓ ✓ ✓ 4. Three and five -year downside capture ratios less than 100 %. ✓ ✓ ✓ �� T i tc 30 BOGDAHN Preliminary reports. New reports will be issued and shipped on or around May 1st when peergroups are updated and finalized. G ROUP Z£6L'Ot7Z'998 ZOZ£S uisuoasIM `aa )lnt'ml!W 118Z£ uPPOI3 `OPUUtjO SSS09 SIOUtjjl `ajj►AUaJiuM 0081 aainS aAd UtsuoasiM 'g 05Z 009 aat_nS `puo -I pUUIaUTA I06b OOZ al►nS puOli P1 OZ£b aaxnumI ! yN opuuljo oi?u31 d f I %fl. - -J% - cut snorsr.rap ,frvr�nprf'puv luartusaRUt .[�eorl 8urryijdugs NHV(-1009 �H.L