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Home My WebLink AboutDocumentation_Pension Public Safety_Tab 06_08/02/2010 Village of Tequesta Public Safety Officers' Pension Fund Preliminary Report 2nd Quarter 2010 THE BOGDAHN GROUP 1X' W W. BOG C) Ali N G R O U P. G O M simplifying your investment and fiduciary (let isious ` w a � •Ll • - A L4 ' I r - r. 1 u i u y ti i_ J • 9 _y Ln Y A c Lr • 1 a `' �• 1 -r M 1� ., � �.�I�L` II • • � tiG • r F r 1 •• y, - .ill _ _ IL 2 Quarter 2010 Market Environment THE 3 BOGDAHN Preliminary report. Returns not confirmed. Peergroups subject to change. GROUP The Market Environment Major Market Index Performance Period Ended: June 30, 2010 Quarter Perform • Even the most optimistic market participants had no shortage of negative events to consider during the second quarter. MSCI , 2. 3 i MSCI EAFE FE -13.7% Domestically, investors had to assess the potential impact of MSCI Emerg Mkts -8.3i financial reform, stubbornly slow employment growth and a burgeoning Federal deficit. Globally, investors had to consider S&P 500 -11.4% the potential contagion of sovereign credit issues in Europe, Russell3000 -11.3% I questionable global growth and evolving Chinese currency Russ 1, • Russell MidCap -9.9i policy. If this collection of macro issues wasn't enough to give Russell2000 -9.9% you pause, there was (and still is) oil spilling into the Gulf of Mexico. One individual pulling -back in the face of such BarclaysUSAgg 3.I challenges is certainly understandable, but if we collectively BarclaysUSGovt 11.2 pause to wait and see "what may happen ", the unfortunate Barclays MBS z.s^ Barclays Corp IG 3# result will likely be deflation. While maintaining a long -term strategy in such an uncertain environment can be difficult, we 3- MonthT -Bill 0.0i are confident in the market's ability to persevere over the long- -20.0% 15.0% 10.0°ro 5.0% 0.0% 5.0°ro 10.0% term. • Domestic and international equity benchmarks suffered their One Year Performance 1 largest pullback in more than a year during the 2nd quarter. MSCI ACWXUS IIIIIIIIIIIIIIIIMIIII 10.9 While it is always tempting to fault a single issue as the cause MSCIEAFE 1 6.4% of negative performance, it is more likely a combination of MSC! Emerg Mkts I 23.5% cascading events that resulted in a general reassessment of market risk tolerance after more than a year of consistent S&P 500 ,° .£ 14.4% Russell 3000 1 15.7% gains. In contrast to equity markets, fixed income benchmarks Russell 1000 15.2% posted impressive quarterly performance as a "flight to quality" Russell MidCap i 25.1 drove investors to U.S. Treasury securities, which resulted in Russell2000 21.5% lower yields and higher prices. Barclays US Agg 1 9.5% Barclays US Govt 6.5% • Despite the 2nd quarter's negative equity performance, one- BarclaysMBS l 7.5% year results were solid for each of the equity and fixed income Barclays Corp IG 1 15.9% benchmarks on the chart. Emerging markets and domestic small and mid cap issues posted the year's most outsized 3- MonthT -Bill � 0.1% , equity gains. Not to be outdone, the Barclays Aggregate Bond o.o %o 5.o %o 10.0% 15.0% 20.0% 25.0% 30.0% index return of 9.5% was also impressive. �^ THE Source. Barclays Capital, MSCI Capital Markets, Russell Investments q ` BOGDAHN Preliminary report. Returns not confirmed. GROUP Peergroups subject to change. The Market Environment Domestic Equity Style Index Performance Period Ended: June 30, 2010 Quarter Performance • Value managed to outpace growth on a relative basis for the quarter at each capitalization level with the exception of small 3000 Value ,,.,% cap stocks (Russell 2000). The chart illustrates that the 2nd 3000 Index 11.3% 3000 Growth -11.6% quarter's style -based performance bands were much more narrow than those realized over the last several quarters. In 1000 Value 41.1% fact, the narrow 140 basis point differential between small cap 1000 Index -11.4% value and growth returns represented the quarter's widest 1000 Growth -11.7% style -based range. This quarter's narrower performance span was not surprising given the widespread losses realized by MidCapValue -9.61 the most heavily- weighted economic sectors of the various MidCapindex 9.9/, capitalization -based style benchmarks. MidCap Growth 10 2000 Value -10.6% 2000 Index -9.9% 2000 Growth -9.2 -15.0% -10.0% -5.0% 0.0% 5.0% One Year Performance • The range of style -based benchmark performance is much 3000 Value 17.6 °r, broader over the one -year period and favors value over 3000 Index 15.7% growth across the capitalization spectrum. The value -based 3000 Growth 13.9% benchmarks' outperformance over the one -year period was largely driven by the strong financial sector performance 1000 Value 16.9% during the 3 quarter of 2009 and the 1st quarter of 2010. 1o0o Index 15.2% While the one -year results are certainly impressive in an 1000 Growth 13s% absolute sense, the inclusion of the 2 quarter's negative performance coupled with the "roll -off of the 2nd quarter of MidCapValue 28.9% MidCap Index 25.1% 2009's strong performance (Russell 1000: +16.5 %) resulted in MidCap Growth 21.3% a significant downshift in the reported one -year performance from last quarter. 2000 Value 25.1% 2000 Index 21.5% 2000 Growth 18.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% �1""1 ib GDAHN Source: Russell Investments 5 Preliminary report. Returns not confirmed. Peergroups subject to change. GROUP The Market Environment GICS Sector Performance & (Quarter -End Sector Weight) Period Ended: June 30, 2010 ■QTR Russell 1000 1 01-Year • Large cap stock performance was negative across the various Global Industry Classification Standard (GICS) sectors for the Energy (10.3 %) 12.6% MIIIIII 3.5 quarter. There were few places for portfolios to shift or hide Materials(3.8 %) -152% with seven of the ten sectors of the Russell 1000 index down I 16.5% 122% more than 10% for the quarter. In a reversal of last quarter's Industrials (10.9 °i ° i 26.6% sector results, telecommunication services ( -5.0 %) and utilities Consumer Disc (10.7%) 11'0% J 1 29.3% ( -3.8 %) sectors were the strongest relative performing sectors Consumer Staples (10.3 %) -8.5%i - of the benchmark during the 2 quarter. Such weak results _ 1 13.3% Health Care (12.2 %) -11.4% on a broad sector level means that individual issue selections 10.3% and uninvested cash positions will likely play a dominate roll in Financials(16.7 %) -13.3' 1 1 7 5 individual investment manager results. Info Technology (18.4%) -12.2% I 16.3% • Telecom Services (2.9 %) -5.0% - For the tra one -year per eac o t t en GICS sec 1 5.8% in the Russell 1000 index posted positive performance. In Utilities %) 3.8% 1 6.3 contrast to the quarterly results, seven of the ten sectors of , the Russell 1000 returned in excess of 10% for the period. 3o.o °i° - 2o.o °r° - lo.o °r° 0.0% 10.0% 20.0% 30.0% 40.0% ■QTR !Russell 20001 • Small cap stock performance was also negative across each O1 -Year of the GICS sectors for the 2nd quarter. Even though the - Energy (5.4 %) quarter's sector losses in the Russell 2000 were generally 1 21.9% more mild than those realized in the large cap index, it was Materials (4.8%) 3'% 1 38.1, still a very difficult quarter for small cap stocks. While issue -7.7% (15.4 %) r selections and cash positions will be paramount in attributing 1 19.6% C onsumer Disc (13.8 %) - 13.6% the quarter's individual manager results, sector positioning to 1 34.0% industrials (- 7.7 %), consumer staples ( -6.4 %) and utilities ConsumerStaples(3.3 %) -6.4% - 1 21.3% ( -3.2 %) will also likely play a role. Health Care (13.8%) -10.3% I 13.2% • 2nd Financials (21.4 % •9.5 � Despite the 2 quar sma cap se th one -year resu 1 21.2% for the Russell 2000 index GICS sectors are impressive. Each Info Technology (17.9%) $.7% 1 210, sector of the Russell 2000 was positive over the period and 9 . ,% six of ten sectors returned in excess of 20 %. Telecom Services (1.0%) 14% Utilities(3.2 %) -3.2% - 1 13.7% - 30.0% - 20.0% - 10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% �� l 111, Source: Thompson Financial 6 BOGDAHN Preliminary report. Returns not confirmed. GROUP Peergroups subject to change. The Market Environment Top 10 Index Weights & Performance for the 2 Quarter Period Ended: June 30, 2010 Top 10 Weighted Stocks Top 10 Weighted Stocks Russell 1000 Symbol Weight Return Sector Russell 2000 Symbol Weight Return Sector Exxon Mobil Corp XOM 2.77% -14.2% Energy Human Genome Sciences HGSI 0.46% -6.4% Health Care Apple Inc AAPL 2.00% 7.1% Information Technology Ual Corp UAUA 0.32% -1.8% Industrials Microsoft Corp MSFT 1.90% -21.0% Information Technology Tupperware Brands Corp TUP 0.26% -0.6% Consumer Discretionary General Electric Co GE 1.61% -20.3% Industrials Skyworks Solutions Inc SWKS 0.26% -4.7% Information Technology Procter & Gamble Co PG 1.59% -4.5% Consumer Staples Ares Cap Corp ARCC 0.25% -3.5% Financials Johnson & Johnson JNJ 1.51 % -8.6% Health Care Domtar Corp UFS 0.25% -6.3% Materials International Business IBM 1.49% -3.2% Information Technology E Trade Financial Corp ETFC 0.24% -9.4% Financials Bank Of America Corpor BAC 1.47% -19.4% Financials Polycom Inc PLCM 0.24% -2.4% Information Technology Jpmorgan Chase & Co JPM 1.45% -18.1% Financials Solera Holdings Inc SLH 0.24% -3.5% Information Technology Wells Fargo & Co New WFC 1.38% -17.6% Financials Developers Diversified DDR 0.23% -9.1% Financials Top 10 Performing Stocks Top 10 Performing Stocks Russell 1000 Symbol Weight Return Sector Russell 2000 Symbol Weight Return Sector Netflix Inc NFLX 0.04% 47.3% Consumer Discretionary Neurocrine Biosciences NBIX 0.02% 119.6% Health Care Mariner Energy Inc ME 0.02% 43.5% Energy Akorn Inc AKRX 0.01% 94.1% Health Care Abraxis Bioscience Inc ABII 0.00% 43A% Health Care Cirrus Logic Inc CRUS 0.08% 88.4% Information Technology Glg Partners Inc GLG 0.01% 42.7% Financials Us Gold Corporation UXG 0.03% 85.6% Materials Sybase Inc SY 0.04% 38.7% Information Technology Idenix Pharmaceuticals IDIX 0.01% 77.3% Health Care Akamai Technologies In AKAM 0.06% 29.2% Information Technology Trimas Corp TRS 0.01% 74.3% Industrials Valeant Pharmaceutical VRX 0.03% 21.9% Health Care Astronics Corp ATRO 0.01% 66.8% Industrials Sandisk Corp SNDK 0.08% 21.5% Information Technology Cpi Corp CPY 0.01% 63.3% Consumer Discretionary Newmont Mining Corp NEM 0.23% 21.4% Materials Southwest Bancorp Inc OKSB 0.02% 60.7% Financials Chipotle Mexican Grill CMG 0.04% 21.4% Consumer Discretionary Power One Inc New PWER 0.05% 60.0% Information Technology Bottom 10 Performing Stocks Bottom 10 Performing Stocks Russell 1000 Symbol Weight Return Sector Russell 2000 Symbol Weight Return Sector Anadarko Pete Corp APC 0.25% -50.3% Energy Intermune Inc ITMN 0.10% -79.0% Health Care Office Depot Inc ODP 0.02% -49.4% Consumer Discretionary First Bancorp P R FBP 0.01% -78.0% Financials Ak St' Hldg Corp AKS 0.02% -47.7% Materials Affymax Inc AFFY 0.04% -74.5% Health Care Massey Energy Corp MEE 0.03% -47.6% Energy Yrc Worldwide Inc YRCW 0.04% -66.9% Industrials Cobalt Intl Energy Inc CIE 0.01% -45.2% Energy Oxigene Inc OXGN 0.00% -66.3% Health Care Seahawk Drilling Inc HAWK 0.00% -42.9% Energy Pacific Cap Bancorp Ne PCBC 0.01% -65.7% Financials Nvidia Corp NVDA 0.07% -41.3% Information Technology South Finl Group Inc TSFG 0.01% -63.1% Financials Sears Hldgs Corp SHLD 0.04% -40.4% Consumer Discretionary Discovery Laboratories DSCO 0.01 % -59.7% Health Care Waddell & Reed Finl In WDR 0.02% -39.3% Financials Fuelcell Energy Inc FCEL 0.02% -58.2% Industrials United States St! Corp X 0.07% -39.3% Materials Old Second Bancorp Inc OSBC 0.00% -57.5% Financials THE n , Source: Thompson Financial BOGDAHN Preliminary report. Returns not confirmed. GROUP Peergroups subject to change. The Market Environment International and Regional Market Index Performance (# Countries) Period Ended: June 30, 2010 • QTR (USD) Quarter Performance I 0QTR(Local) ' • Much like the domestic indices, international markets also suffered during the quarter due to concerns over global credit AC World US (44) 123/ 93/ and sustainable growth. The "flight" to the safety of the U.S. WORLD xus(23) -13.4% Dollar (USD) that typically occurs during periods of global -10.4/ Mil -13 E A FE (22) unrest is clearly evident in the USD versus local currency _10.9/ international index results. Relative to the USD, 39 of the 44 Europe (16) -14.8% countries that make up the MSCI - ACWxUS index saw their 9.5% ° Pacific (5) -11.6 currencies depreciate by an average of -6.0%. In contrast _13.0% Japan was one of the five ACWxUS countries that managed Emerging Mkt (21) -8 to gain relative to the USD during the quarter with an 5.5% -15.3% appreciation of +4.8 %. EMEurope(5) 90% EM Asia (8) 5 • Weak performance in developed markets (- 13.8 %) was 2.7% E M Latin Amer (5) -11.9% spread broadly across the 22 countries in the MSCI -EAFE -10.3/ index. In fact, Singapore's USD return of +0.0% was the only -20.0% - 15.0% - 10.0% -5.0% 0.0% 5.0% positive country in the index. In contrast to Singapore, it should certainly come as no surprise that Greece was the ■,_Year(USD) worst performing country in the index with a return of - 40.4% One- Year p 9 ry o 1 -Year (Local) for the quarter. The emerging markets index return of -8.3% 10.9/ for the quarter was down less than developed markets for the AC World x US (44 124% quarter due to stronger relative results in the emerging Asian WORLD US (23) 7.5' countries as well as some sporadic positive individual country - 6.4% 10.3/ results. Over the last year, the emerging market index shows EAFE(22) 10.4/ a performance advantage of more than 3x the developing Europe (16) 6.3/ market index return. 17.3/ Pacific (5) 6.6/ -0.8% • It is interesting to note that MSCI reclassified Israel as a EmergingMkt(21) 23.5/ developed market country as part of its semi - annual index 20.1% o EM Europe (5) 27.0 review in May. While Israel's 0.9% weight i n th e MSCI - EAFE 30.5/ index at the end of the quarter may not seem significant, it is EM Asia (8) IIMMIMM 23.0% the first country in the developed index that does not fall into 19.9/ E M Latin Amer (5) 25.7% the classic definition of (E)urope, (A)ustralasia or (F)ar (E)ast. 18.3/ -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% �� THE Source: MSCI Capital Markets 8 BOGDAHN Preliminary report. Returns not confirmed. "` GROUP Peergroups subject to change. The Market Environment U.S. Dollar International Index Attribution & Country Detail Period Ended: June 30, 2010 incl. EAFE MSCI - ACWIxUS 2nd Quarter 1 - Year Country Ending Weight Ending Weight Return Return MSCI - EAFE Ending Weight 2nd Qtr Return 1 - Year Return Japan 23.3% 16.0% - 10.1% 0.9% United Kingdom 21.0% 14.5% -13.8% 8.6% Energy 7.1% - 22.5% - 9.2% France 9.8% 6.7% -18.3% 1.7% Materials 10.1% - 18.1% 13.4% Australia 8.1% 5.6% - 19.0% 18.1% Industrials 12.3% - 10.9% 13.9% Switzerland 8.0% 5.5% -11.3% 18.0% Germany 7.8% 5.4% -12.1% 7.8% Consumer Discretionary 10.3% - 10.1% 10.4% Spain 3.5% 2.4% - 20.4% - 12.6% Consumer Staples 10.6% -7.3% 19.4% Sweden 2.9% 2.0% - 6.6% 30.8% Health Care 9 -9.6% ° Italy 2.8 % 2.0 / 2LO % s2 10.8 /o Netherlands 2.6% 1.8% - 13.0% 17.4% Financials 24.4% -16.9% 0.8% Hong Kong 2.6% 1.8% - 5.8% 14.3% Information Technology 5.2% - 14.7% 6.3% Singapore 1.7% 1.2% 0.0% 29.4% Finland 1.0% 0.7% - 25.9% - 9.4% Telecommunication Services 5.6% - 9.3% 4.4% Denmark 1.0% 0.7% - 5.4% 19.4% Utilities 5.5% - 12.5% - 4.0% Belgium 0.9% 0.7% -12.3% 13.6% Total 100.0% -13.8% 6.4% Israel 0.9% 0.6% -18.4% 13.2% Norway 0.7% 0.5% -17.5% 12.3 Austria 0.3% 0.2% - 21.9% - 10.0% Ireland 0.3% 0.2% -19.8% -7.0% Greece 0.3% 0.2% -40.4% - 46.7% Portugal 0.3% 0.2% -16.7% -9.8% New Zealand 0.1% 0.1% -10.5% 8.6% otal EAFE Countries _ 100.0% 68.9% -13.7% 6.4% MSCI - ACWIxUS Ending Weight 2nd Qtr Return 1 -Year Return Canada �� 7.9% - 103% 18.6% Energy 10.3% 16.7% 0.3% otal Developed Countries 76.8% 6 - 13.4% 7.5% China 4.4% -4.5% 11.1% Materials 11.8% - 15.2% 19.9% Brazil 3.6% - 15.2% 22.1% Industrials 10.5% - 10.5% 14.9% Korea 3.2% - 7.6% 32.3% Taiwan 2.5% - 9.3% 16.1% Consumer Discretionary 8.9% -8.6% 15.2% India 1.9% - 2.2°% 32.0% Consumer Staples 9.1% -6.3% 22.3% South Africa 1.7% - 9.5% 18.4% Health Care 6.4% -9.4% 12.0% Russia 1.5% - 15.4% 26.9% Mexico 1.0% - 9.0% 31.7% Financials 25.3% - 14.7% 7.2% Malaysia 0.7% 0.2% 33.9% Information Technology 6.9% - 13.3% 14.6% Indonesia 0.6% 4.4% 66.9% Telecommunication Services 6.1% -7.0% 7.7% Turkey 0.4% - 4.0% 44.3% Chile 0.4% 2.9% 25.8% Utilities 4.8% - 11.0% - 0.5% Thailand 0.4% -1.7% 35.1% Total 100.0% Poland 0.3°% -21.6% 24.0°% Colombia 0.2% 3.6% 53.6% Peru 0.1% 4.2% 52.2% Egypt 0.1% -13.4% 11.4% Philippines 0.1% 3.1% 37.2% Hungary 0.1% -30.2% 15.5% Czech Republic 0.1% -13.0% -0.6% Morocco 0.0% - 4.1% - 11.1% Total Emerging Countries 23.2% - 8.3% 23.5% Total ACWIxUS Countries 100.0% -12.3% 10.9% �� THE Source: MSCI Capital Markets. & Franklin/Templeton g l BOGDAHN Preliminary report. Returns not confirmed. ` Peergroups subject to change. GROUP Tn 1- The Market Environment Domestic Credit Sector & Broad Market Maturity Performance Period Ended: June 30, 2010 Quarter Performance • The equity market unrest that occurred during the quarter was largely a benefit to fixed income indices. Foreign sovereign AAA 111MIMINMEMINIE 4.6% credit worries and the looming possibility of a "double -dip" AA 3 . 1 % recession overshadowed the corporate spread compression A 3.7% that dominated fixed income results for most of the last year. BBB 111111112M 211% The resulting "flight to quality" drove rates lower across the <BBB Treasury yield curve. This general rate decline enhanced the Goat 4.3% performance of Tong -dated and high - quality bond issues. The market's changing risk aversion was evident in the high yield Mort 2.9% index ( <BBB) return of -0.1 %. This performance marked the G /M /C = Broad Market (Government + Mortgage + Corporate) first quarter in more than a year that high yield was not the 1-3yrG /M /C 1.6% best performing segment of the fixed income market. 1- 5yrG/M/C 2.1% 1 -10yr G /M /C 2.9% 10 +yr G /M /C 8.5% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% One Year Performance • Despite questions surrounding the sustainability of the global economic recovery that dominated the quarter's results, the one -year performance of the various bond market indices still ' 12 shows the effects of sizable credit compression in corporate A 15.4% issues. The Government bond index, which did not benefit BBB 2 � - 119.6% from the credit compression in corporate bonds, posted a <BBB 27.5% respectable +6.5% over the last year. Govt 6.5% Mort 7.6% 1 -3yr G /M /C 5.3% 1 -5yr G /M /C 6.4% 1 -10yr G /M /C 8.1% 10 +yr G /M /C 16.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% ow% \ THE Source: Merrill Lynch Index System 10 BOGDAHN Preliminary report. Returns not confirmed. Peergroups subject to change. GROUP T � THE 11 BOGDAHN Preliminary report. Returns not confirmed. Peergroups subject to change. GROUP Tequesta Public Safety Officers' Pension Fund June 30, 2010 Asset Allocation By Style as of Mar - 2010 Asset Allocation By Style - Current Quarter March 31, 2010 : $5, 359,607 June 30, 2010 : $5,137,496 `, r r � c e M i k Ti' Segments Ma rket Value 829 Allocation Segments Market Value Allocation ($) ( %) ($) ( %) ■Equity 2 , 289, 44.6 • Equity 3,228,822 60.2 International Equity 515,322 10.0 D Fixed Income 1,7 62,953 32 .9 ■Fixed Income 2 ,115,285 41.2 • Cash Equivalent 367,8 Pr 6.9 ■C ash Equiva 217,059 4.2 � � THE 12 BOGDAHN eliminary report. confirmed. / • ROUP Peergroups subject to change. not �T Tequesta Public June Safety 30, Offi2010 cers' Pension Fund Asset Allocation By Manager as of Mar - 2010 Asset Allocation By Manager - Current Quarter March 3l, 2010 : $5,359,607 June 30, 2010: $5,137,496 ..,;;;',:: ,",-,„, 4 0 fr a 0. v „ ' 4''''':Aa*T a ` q "' „x `" � a 4 � " a Market Value Allocation ($) ( %) Market Value Allocation ■ k q 2,320,509 45.2 ($) ( %) ® Roc Roc kwood F ixed Income 2,301,564 44.8 • Rockwood Capital Advisors Balanced Account 5,340,721 99.6 • Europac c Growth uity (RERGX) 515,322 10.0 1 Checking Account 18,886 0.4 • Checking Account 100 � � THE 13 BOGDAHN Prelimina ry report . Returns not confirmed. L "' ^ Peergroups subject to change. GROUP Tequesta Public Safety Officers' Pension Fund Asset Allocation vs. Target Allocation As of June 30, 2010 June 30, 2010 Cash Equivalent- 4.2% Equity- -5.4% Fixed Income 1.2% International Equity- 0.0% -10.0% -8.0% -4.0% 0.0% 4.0% 8.0% 10.0% Allocation Differences June 30, 2010 Market Value Allocation Target ($) ( %) ( %) Cash Equivalent 217,059 4.2 - Equity 2,289,829 44.6 50.0 Fixed Income 2,115,285 41.2 40.0 International Equity 515,322 10.0 10.0 Total Fund 5,137,496 100.0 100.0 �� THE 14 BOGDAHN Preliminary report. Returns not confirmed. Peergroups subject to change. GROUP Tequesta Public Safety Officers' Pension Fund Asset Allocation History As of June 30, 2010 Asset Allocation History by Portfolio Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 ($) ( %) (5) ( %) ($) ( %) (5) ( %) ($) ( %) Rockwood Equity 2,320,509 45.17 - - - - - - - - Rockwood Fixed Income 2,301,564 44.80 - - - - - - - - Europacific Growth (RERGX) 515,322 10.03 - - - - - - - - Rockwood Capital Advisors Balanced Account - - 5,340,721 99.65 4,940,176 99.55 4,680,910 99.94 4,108,133 99.56 Checking Account 100 - 18,886 0.35 22,428 0.45 3,030 0.06 18,012 0.44 Total Fund 5,137,496 100.00 5,359,607 100.00 4,962,603 100.00 4,683,940 100.00 4,126,146 100.00 Asset Allocation History by Segment 100.0 - 80.0- .. 60.0- C 0 o 40.0 - Q 20.0- 0.0 7/07 10/07 1/08 4/08 7/08 10/08 1/09 4/09 7/09 10/09 1 /10 4/10 6/10 ■ Equity El International Equity ■ Fixed Income ■ Cash Equivalent �� THE 15 t BOGDAHN Preliminary report. Returns not confirmed. 1" "` Peergroups subject to change. GROUP 16 Preliminary report. Returns not confirmed. Peergroups subject to change. Tequesta Public Safety Officers' Pension Fund Financial Reconciliation As of June 30, 2010 Financial Reconciliation Quarter to Date Market Market Capital Value Net Contribution Value As of Transfers s Distributions Fees Expenses Income Apprec./ As of 3/31/2010 Deprec. 6/30/2010 Rockwood Equity - 2,772,294 - - - - 5,305 - 457,090 2,320,509 Rockwood Fixed Income - 2,206,055 74,858 - -6,926 -8,268 30,085 5,760 2,301,564 Europacific Growth (RERGX) - 550,000 - - - - - - 34,678 515,322 Rockwood Capital Advisors Balanced Account 5,340,721 - 5,509,830 55,774 - - -1,582 - 10,172 125,090 - Checking Account 18,886 - 18,519 - - - -268 - - 100 Total Fund 5,359,607 - 130,632 - -6,926 - 10,118 25,218 - 360,917 5,137,496 Financial Reconciliation Fiscal Year to Date Market Market Capital Value Net Contribution Value As of Transfers s Distributions Fees Expenses Income Apprec./ As of 9/30/2009 Deprec. 6/30/2010 Rockwood Equity - 2,772,294 - - - - 5,305 - 457,090 2,320,509 Rockwood Fixed Income - 2,206,055 74,858 - -6,926 -8,268 30,085 5,760 2,301,564 Europacific Growth (RERGX) - 550,000 - - - - - - 34,678 515,322 Rockwood Capital Advisors Balanced Account 4,680,910 - 5,569,830 351,255 - - -3,661 38,579 502,746 - Checking Account 3,030 41,481 - - - 12,526 - 31,885 - - 100 Total Fund 4,683,940 - 426,113 - - 19,452 - 43,813 73,969 16,739 5,137,496 ` THE 17 -- BOGDAHN Preliminary report. Returns not confirmed. GROUP Peergroups subject to change. Tequesta Public Safety Officers' Pension Fund Comparative Performance Trailing Returns As of June 30, 2010 Oct -2009 1 1 2 3 Since Inception To Quarter Jun-2010 Year Years Years Inception Date Total Fund (Net) -6.29 (67) 1.60 (31) 9.85 (94) -3.80 (83) -2.73 (56) 2.56 N/A 05/01/2005 Total Fund Policy -5.78 (40) 1.59 (32) 12.32 (49) -1.79 (52) -2.92 (59) 2.37 N/A Difference -0.51 0.01 -2.47 -2.01 0.19 0.19 All Public Plans -Total Fund Median -6.03 1.04 12.16 -1.65 -2.40 N/A Total Fund (Gross) -6.17 2.00 10.42 -3.42 -2.30 3.04 05/01/2005 Total Fund Policy -5.78 1.59 12.32 -1.79 -2.92 2.37 Difference -0.39 0.41 -1.90 -1.63 0.62 0.67 Total Domestic Equity -13.57 (95) -1.56 (65) 10.10 (90) -12.73 (98) -10.18 (79) -1.02 (92) 04/01/2005 S &P 500 -11.43 (54) -1.02 (54) 14.43 (41) -* 11 (60) -9.81 (70) -0.50 (81) Difference -2.14 -0.54 -4.33 -4.62 -0.37 -0.52 US Core /Large Cap Equity (SA +CF) Median -11.41 -0.96 13.85 -7.90 -9.17 0.29 Total Fixed Income 2.67 (91) 4.73 (96) 8.45 (93) 6.42 (96) 6.87 (88) 5.27 (94) 04/01/2005 Barcap Intermediate U.S. Government/Credit 2.97 (82) 4.88 (95) 8.29 (93) 6.77 (96) 6.97 (88) 5.49 (91) Difference -0.30 -0.15 0.16 -0.35 -0.10 -0.22 US Broad Market Core Fixed Income SA +CF Median 3.37 6.04 10.94 8.91 8.27 6.33 Returns for periods greater than one year are annualized. Tti t Returns are expressed as percentages. Retums prior to June 2010 do not include cash. 18 L. BOGDAHN Preliminary report. Returns not confirmed. GROUP Peergroups subject to change. Tequesta Public Safety Officers' Pension Fund Comparative Performance Trailing Returns As of June 30, 2010 1 Oct-20 09 1 2 3 Since Inception Quarter Jun -2010 Year Years Years Inception Date Rockwood Equity -13.57 (95) -1.56 (65) 10.10 (90) -12.73 (98) -10.18 (79) -16.14 (100) 05/01/2010 S &P 500 -11.43 (54) -1.02 (54) 14.43 (41) -8.11 (60) -9.81 (70) - 12.80 (50) Difference -2.14 -0.54 -4.33 -4.62 -0.37 -3.34 US Core /Large Cap Equity (SA +CF) Median -11.41 -0.96 13.85 -7.90 -9.17 -12.81 Europacific Growth (RERGX) N/A N/A N/A N/A N/A -0.79 (45) 06/01/2010 MSCI EAFE Index -13.75 (79) -11.00 (93) 6.37 (80) -14.30 (57) -12.94 (80) -0.97 (55) Difference N/A N/A N/A N/A N/A 0.18 International Equity Large -Cap Growth Funds (MF) Median -12.36 -7.39 9.35 -13.58 -11.13 -0.86 Rockwood Fixed Income 2.67 (91) 4.73 (96) 8.45 (93) 6.42 (96) 6.87 (88) 1.63 (85) 05/01/2010 Barcap Intermediate U.S. Government /Credit 2.97 (82) 4.88 (95) 8.29 (93) 6.77 (96) 6.97 (88) 2.08 (58) Difference -0.30 -0.15 0.16 -0.35 -0.10 -0.45 US Broad Market Core Fixed Income SA +CF) Median 3.37 6.04 10.94 8.91 8.27 2.15 Returns for periods greater than one year are annualized. __0'• THE Returns are to en. ` 1j:j OGDA N Returns prior r to June 200 10 0 do do not not include cash. 19 - ►!e 1� i 11 Preliminary report. Returns not confirmed. Peergroups subject to change. GROUP Tequesta Public Safety Officers' Pension Fund Comparative Performance Fiscal Year Returns As of June 30, 2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 Oct -2005 Oct -2004 To To To To To To Jun -2010 Sep -2009 Sep -2008 Sep -2007 Sep -2006 Sep -2005 Total Fund (Net) 1.60 (31) -1.39 (79) -11.80 (26) 14.24 (54) 4.07 (99) N/A Total Fund Policy 1.59 (32) 0.48 (62) -12.46 (36) 12.02 (90) 7.88 (68) N'A Difference 0.01 -1.87 0.66 2.22 -3.81 N/A All Public Plans -Total Fund Median 1.04 1.36 -13.67 14.43 8.74 12.54 Total Fund (Gross) 2.00 -1.12 -1134 14.82 4.67 N/A Total Fund Policy 1.59 0.48 -12.46 I -'.02 7.88 N/A Difference 0.41 -1.60 1.12 2.80 -3.21 N/A Total Domestic Equity -1.56 (65) -10.99 (94) -21.39 (53) 21.99 (10) 5.38 (97) N/A S &P 500 -1.02 (54) -6.91 (60) -21.98 (65) 16.44 (58) 10.79 (52) 12.25 (80) Difference -0.54 -4.08 0.59 5.55 -5.41 N/A US Core /Large Cap Equity (SA +CF) Median -0.96 -6.48 -21.14 16.61 10.81 14.34 Rockwood Equity -1.56 (65) -10.99 (94) -21.39 (53) 21.99 (10) 5.38 (97) N/A S &P 500 -1.02 (54) -6.91 (60) -21.98 (65) 16.44 (58) 10.79 (52) 12.25 (80) Difference -0.54 -4.08 0.59 5.55 -5.41 N/A US Core /Large Cap Equity (SA +CF) Median -0.96 -6.48 -21.14 16.61 10.81 14.34 Europacific Growth (RERGX) N/A N/A N/A N/A N/A N/A MSCI EAFE Index -11.00 (93) 3.80 (36) -30.13 (59) 25.38 (79) 19.65 (18) 26.32 (49) Difference N/A N/A N/A N/A N/A N/A International E. uit Lar • e -Ca. Growth Funds (MF) Median -7.39 0.79 -28.42 28.39 17.16 26.19 Returns for periods greater than one year are annualized. THE Returns are expressed as percentages. Returns prior to June 2010 do not include cash. 20 . B OGDAHN Preliminary report. Returns not confirmed. GROUP Peergroups subject to change. Tequesta Public Safety Officers' Pension Fund Comparative Performance Fiscal Year Returns As of June 30, 2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 Oct -2005 Oct -2004 To To To To To To Jun -2010 Sep -2009 Scp -2008 Sep -2007 Sep -2006 Sep -2005 Total Fixed Income 4.73 (96) 9.03 (92) 3.55 (36) 5.93 (9) 3.88 (45) N/A Barcap Intermediate U.S. Government /Credit 4.88 (95) 10.01 (89) 3.13 (41) 5.43 (28) 3.54 (85) 1.48 (100) Difference -0.15 -0.98 0.42 0.50 0.34 N/A US Broad Market Core Fixed Income (SA +CF) Median 6.04 12.49 2.56 5.16 3.86 3.11 Rockwood Fixed Income 4.73 (96) 9.03 (92) 3.55 (36) 5.93 (9) 3.88 (45) N/A Barcap Intermediate U.S. Government/Credit 4.88 (95) 10.01 (89) 3.13 (41) 5.43 (28) 3.54 (85) 1.48 (100) Difference -0.15 -0.98 0.42 0.50 0.34 N/A US Broad Market Core Fixed Income (SA +CF) Median 6.04 12.49 2.56 5.16 3.86 3.11 Returns for periods greater than one year are annualized. THE Returns are expressed as percentages. Returns prior to June 2010 do not include cash. 21 `",, B OGDAHN Preliminary report. Returns not confirmed. Peergroups subject to change. GROUP Tequesta Public Safety Officers' Pension Fund Total Fund (Gross) June 30, 2010 Plan Sponsor Peer Group Analysis - All Public Plans -Total Fund 25.00 25.00 20.00- 20.00 - 1 5 . 0 0 - 1 5 . 0 0 - I 0 . 0 0 - 1 0 . 0 0 - 5 . 0 0 - 5 . 0 0 - hil 0.00 - E. ° • E 0.� . ■ H ,_ C -5.00 - 0.00- '2r,:',: is • - 10.00- ■ • -5.00 - * • -15.00 - -10.00 - -20.00- -15.00 i 1 1 1 I 1 -25.00 1 1 1 1 Oct -2009 1 2 3 4 5 Oct -2008 Oct -2007 Oct -2006 Oct -2005 Oct -2004 Quarter To Year Years Years Years Years To To To To To Jun -2010 Sep -2009 Sep -2008 Sep -2007 Sep -2006 Sep -2005 • Total Fund (Gross) -6.17 (56) 2.00 (21) 10.42 (86) -3.42 (78) -2.30 (45) 1.54 (53) 2.16 (69) • Total Fund (Gross) -1.12 (80) -11.34 (21) 14.82 (32) 4.67 (100) N/A • Total Fund Policy -5.78 (37) 1.59 (31) 12.32 (47) -1.79 (54) -2.92 (62) 1.17 (71) 1.94 (75) • Total Fund Policy 0.48 (67) -12.46 (40) 12.02 (90) 7.88 (59) N/A Median -6.09 0.98 12.11 -1.62 - 2.39 1.55 2.73 Median 1.91 -13.33 14.09 8.10 11.87 Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2010 Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Total Fund (Gross) 5.31 (1) 3.22 (67) 8.25 (95) 5.63 (95) -3.49 (12) -10.40 (20) Total Fund Policy 3.92 (51) 3.75 (34) 10.56 (67) 10.13 (57) -6.51 (69) -11.73 (36) All Public Plans -Total Fund Median 3.92 3.41 11.46 10.60 -5.77 -12.81 TH E 22 fc BOGDAHN Preliminary report. Returns not confirmed. GROUP RoUP Peergroups subject to change. �7 Tequesta Public Safety Officers' Pension Fund Total Fund (Gross) June 30, 2010 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 20.0 Over 0.0 • Per ,rnnnce • 12.0 = 25.0- 5 e 4. `e 50.0 - • • • 0 • E • -4.0 1 • • C.5 • 9 E 750 g 2 111 -12.0 m Under C '� .t �k"��.� =fir .t. � • Performance 100.0 , , 1 , , 1 . F -20.0 9/05 9/06 9/07 9/08 9/09 6/10 -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 (Gross) 10 3 (30%) 4 (40 %) 2 (20 %) 1 (10 %) -- Under Performance - Over P erl6r nance -6- Mar - 2008 -O- Jun -2010 • Total Fund Policy 10 0 (0%) 2 (20 %) 6 (60 %) 2 (20 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 20.00 17.50 15.00 - 14.00 - 10.00- 10.50 - e 5.00 - o.00 - `-- 7.00 - E 8 et 5.00- et 3.50- -10.00 1 0.00 0.00 15.00 30.00 45.00 60.00 75.00 0.00 10.00 20.00 30.00 40.00 50.00 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation • Total Fund (Gross) -2.30 11.64 • Total Fund (Gross) 2.16 9.71 • Total Fund Policy -2.92 12.63 • Total Fund Policy 1.94 10.24 - Median -2.39 12.99 - Median 2.73 10.49 Historical Statsistics - 3 Years Tracking Up Down Sharpe Downside Error Market Market Alpha TR Ratio Beta Risk Capture Capture Total Fund (Gross) 5.03 95.78 93.49 0.18 0.10 -0.27 0.85 9.28 Total Fund Policy 0.00 100.00 100.00 0.00 N/A -0.29 1.00 10.05 Historical Statsistics - 5 Years Tracking Up Down Sharpe Downside Error Market Market Alpha 112 Beta Beta Risk Capture Capture Total Fund (Gross) 4.34 99.15 97.63 0.50 0.04 - 0.01 0.86 7.44 Total Fund Policy 0.00 100.00 100.00 0.00 N/A -0.02 1.00 7.86 �� Ti ii- 23 BOGDAHN Preliminary report. Returns not confirmed. GROUP Peergroups subject to change. Tequesta Public Safety Officers' Pension Fund Rockwood Equity June 30, 2010 Peer Group Analysis - US Core/Large Cap Equity (SA +CF) 25.00 30.00 20.00 - • 20.00 - • 15.00 - • 10.00 - - 10.00 - • ■ 0.00 - 5.00 - ° E m E „ o.00 - �� • a - o.00 - • ■ p ■ • -5.00- -20.00 - - 10.00- • • • • - 30.00- -15.00 -20.00 1 1 1 1 1 1 -40.00 1 1 1 1 1 Oct -2009 1 2 3 4 5 Oct -2008 Oct -2007 Oct -2006 Oct -2005 Oct -2004 Quarter To Year Years Years Years Years To To To To To Jun -2010 Sep -2009 Sep -2008 Sep -2007 Sep -2006 Sep -2005 • Rockwood Equity -13.57 (95) -1.56 (65) 10.10 (90) -12.73 (98) -10.18 (79) -3.27 (83) -1.23 (91) • Rockwood Equity - 10.99 (94) - 21.39 (53) 21.99 (10) 5.38 (97) N/A • S &P 500 -11.43 (54) -1.02 (54) 14.43 (41) -8.11 (60) -9.81 (70) -3.02 (72) -0.79 (78) • S &P 500 - 6.91 (60) - 21.98 (65) 16.44 (58) 10.79 (52) 12.25 (80) Median - 11.41 - 0.96 13.85 - 7.90 -9.17 - 2.53 0.00 Median -6.48 -21.14 16.61 10.81 14.34 Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2010 Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Rockwood Equity 8.05 (3) 5.40 (74) 11.84 (90) 9.14 (95) -6.96 (14) -21.63 (50) S &P 500 5.39 (52) 6.04 (49) 15.61 (38) 15.93 (42) -11.01 (69) -21.94 (60) US Core/Large Cap Equity (SA +CF) Median 5.40 6.01 15.28 15.57 -10.44 -21.68 �."� THE BOGDAHN Preliminary report. Returns not confirmed. Peergroups subject to change. GROUP Tequesta Public Safety Officers' Pension Fund Rockwood Equity June 30, 2010 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 20.0 0.0 Over Performance 10.0- • m • • 25.0 - et • e 0.0- m • - w 50.0 - • -10.0 - d a e 75.0 - • • • . • • i • $ -20.0 - • 3 Under ce Q Performance 1Performance I , 1 I I o e4 -30.0 , , 9/05 9/06 9/07 9/08 9/09 6/10 -30.0 -20.0 -10.0 0.0 10.0 20.0 Total Period 5-25 25- Median Median -75 75-95 S &P 500 ( %) Count Count Count Count • Rockwood Equity 10 2 (20 %) 2 (20 %) 5 (50 %) 1 (10 %) • Over Performance -M- Under Perfornnnce -- Mar -2008 -- Jun -2010 • S &P 500 20 0 (0 %) 0 (0 %) 15 (75 %) 5 (25 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 5.00 10.00 0.00 - 5.00 - -5.00 - F e 0% .00 IP � - 10.00- a - 15.00- ` e -5.00- 4 a a -20.00 , , 1 1 1 -10.00 1 , 5.00 10.00 15.00 20.00 25.00 30.00 35.00 5.00 10.00 15.00 20.00 25.00 30.00 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation • Rockwood Equity -10.18 21.01 • Rockwood Equity -1.23 17.56 • S &P 500 -9.81 21.85 • S &P 500 -0.79 18.06 - Median -9.17 21.64 - Median 0.00 17.99 Historical Statistics - 3 Years Tracking Up Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Rockwood Equity 8.18 100.80 101.67 -0.92 -0.04 -0.48 0.93 17.26 S &P 500 0.00 100.00 100.00 0.00 N/A -0.47 1.00 16.84 Historical Statsistics - 5 Years Tracking Up Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Rockwood Equity 7.20 103.86 105.51 -0.29 -0.05 - 0.14 0.94 13.80 S &P 500 0.00 100.00 100.00 0.00 N/A -0.12 1.00 13.19 �� THE 25 BOGDAHN Preliminary report. Returns not confirmed. GROUP Peergroups subject to change. THE 26 BOGDAHN Preliminary report. Returns not confirmed. GROUP Peergroups subject to change. Tequesta Public Safety Officers' Pension Fund Europacific Growth (RERGX) June 30, 2010 Peer Group Analysis - International Equity Large -Cap Growth Funds (MF) 20.00 50.00 15.00 - 40.00 - 10.00 - 30.00 - 5.00 - 20.00 - - 0.00 - 10.00 - e E ac. `o z -5 - ae 0.00 - -10.00- -10.00 - -15.00 - - 20.00 - - 20.00 - - 30.00 - 25.00 1 1 1 1 1 1 -40.00 1 Oct -2009 1 2 3 4 5 Oct - 2008 Oct -2007 Oct -2006 Oct -2005 Oct -2004 Quarter To Year Years Years Years Years To To To To To Jun -2010 Sep -2009 Sep -2008 Sep -2007 Sep -2006 Sep -2005 • Europacific Growth (RERGX) N/A N/A N/A N/A N/A N/A N/A • Europacific Growth (RERGX) N/A N/A N/A N/A N/A • MSCI EAFE Index -13.75 (79) -11.00 (93) 6.37 (80) -14.30 (57) -12.94 (80) -4.22 (72) 1.35 (68) • MSCI EAFE Index 3.80 (36) - 30.13 (59) 25.38 (79) 19.65 (18) 26.32 (49) Median -12.36 -7.39 9.35 -13.58 -11.13 -3.15 2.08 Median 0.79 - 28.42 28.39 17.16 26.19 Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2010 Dec-2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Europacific Growth (RERGX) N/A N/A N/A N/A N/A N/A MSCI EAFE Index 0.94 (81) 2.22 (93) 19.52 (15) 25.85 (16) -13.85 (89) -19.90 (50) International Equity Large -Cap Growth Funds (MF) Median 1.76 4.00 17.83 2239 -11.55 -19.90 �� TH F. 27 BOGDAHN Preliminary report. Returns not confirmed. subject to change. GROUP Tequesta Public Safety Officers' Pension Fund Rockwood Fixed Income June 30, 2010 Peer Group Analysis - US Broad Market Core Fixed Income (SA+CF) 18.00 20 MO 16.00- 17.50 - 15.00- 14.00 - 12.50 - 12.00 - 10.00 0 ..- ■ 10.00- 7.50 - .,., 0 ill • e 1_�M C 8.00- a 5.00- • II • • • na,. NA • • • 2.50- 6.00- • • • • 0.00- • 4 .00 - -2.50 - • w 2.00- -5.00 - 0.00 i i 1 1 1 -7.50 1 1 1 Oct -2009 8 2 3 4 5 Oct -2008 Oct -2007 Oct -2006 Oct -2005 Oct -2004 Quarter To Year Years Years Years Years To To To To To Jun -2010 Sep -2009 Sep -2008 Sep -2007 Sep -2006 Sep -2005 • Rockwood Fixed Income 2.67 (91) 4.73 (96) 8.45 (93) 6.42 (96) 6.87 (88) 6.59 (90) 5.37 (85) • Rockwood Fixed Income 9.03 (92) 3.55 (36) 5.93 (9) 3.88 (45) N/A • Barcap Intermediate U.S. Government/Credit 2.97 (82) 4.88 (95) 8.29 (93) 6.77 (96) 6.97 (88) 6.67 (89) 5.26 (89) • Barcap Intermediate U.S. Govemment/Credit 10.0 (89) 3.13 (41) 5.43 (28) 3.54 (85) 1.48 (10 1 0) Median 3.37 6.04 10.94 8.91 8.27 7.72 6.05 Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2010 Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Rockwood Fixed Income 1.74 (83) 0.27 (71) 3.55 (89) 2.11 (74) -0.10 (74) 3.23 (58) Barcap Intermediate U.S. Govemment/Credit 1.54 (94) 0.31 (67) 3.25 (94) 1.67 (89) -0.05 (73) 4.84 (33) US Broad Market Core Fixed Income (SA +CF) Median 2.12 0.58 4.71 3.45 0.48 3.77 �� THE 28 BOGDAHN Preliminary report. Returns not confirmed. GROUP Peergroups subject to change. Tequesta Public Safety Officers' Pension Fund Rockwood Fixed Income June 30, 2010 3 Yr Rolling Under /Over Performance - 5 Years 3 Yr Rolling Percentile Ranking - 5 Years 9.0 0.0 Over Performance • 7.0 - • 25.0 • e ce •• I. 5.0 - 50.0 � . ■ a d = • 75.0 • ii 3.0 - P • v Under C • • Ill e. ° P er�m ttnce 100.0 Y 1.0 1 i i - 9/05 9/06 9/07 9/08 9/09 6/10 = 1.0 3.0 5.0 7.0 9.0 a Total Period 5-25 25- Median Median -75 75-95 Barca Intermediate U .S.Government /Credit( %) Count Count Count Count • Rockwood Fixed Income 10 2 (20 %) 2 (20 %) 4 (40 %) 2 (20 %) • Over Performance f Under Performance -(- Mar -2008 $ Jun -2010 • Barcap Intermediate U.S. Government /Credit 20 0 (0 %) 5 (25 %) 3 (15 %) 12 (60 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 Years 12.00 9.00 10.50 - 8.001 9.00 - 7.00 7.50- i° 6.001 E 6.00 - ■ • = 5.00 • `e • 4.50 - a 4.00 3.00 1 1 1 1 1 3.00 1 i i t 2.00 4.00 6.00 8.00 10.00 12.00 14.00 3.00 4.50 6.00 7.50 9.00 1050 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation • Rockwood Fixed Income 6.87 3.37 • Rockwood Fixed Income 5.37 3.08 • Barcap Intermediate U.S. Government/Credit 6.97 3.75 • Barcap Intermediate U.S. Govemment/Credit 5.26 3.41 - Median 8.27 4.15 - Median 6.05 3.92 Historical Statistics - 3 Years Tracking Up Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Rockwood Fixed Income 2.29 103.16 114.12 -0.05 -0.03 1.19 1.00 2.70 Barcap Intermediate U.S. Govemment/Credit 0.00 100.00 100.00 0.00 N/A 1.40 1.00 1.84 Historical Statsistics - 5 Years Tracking U p Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Rockwood Fixed Income 1.80 102.44 102.64 0.22 0.07 0.70 0.98 2.17 Barcap Intermediate U.S. Govemment/Credit 0.00 100.00 100.00 0.00 N/A 0.74 1.00 1.59 " 1'IIf 29 � BOGDAHN Preliminary report. Returns not confirmed. Peergroups subject to change. 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. THE 31 BOGDAHN Preliminary report. Returns not confirmed. GROUP Peergroups subject to change. No Text , �� , ... ��. �>..,, .. �� „ �� A ,, �,,,�� ,.,�,, qp : f ��.. �'3'r", s {�4 „ "€� ` e k � ��° �� a ��' a�tjP��r �` Y F��33,�{g ��f� �� s ��-��., �& � 4 �'U{ � 6 " X , ¢D�9ts � ��rt'�,mTd�4 � . -. VJSY ��.,�.. r�^� Y,r..� i x. -... � �� ; a� � � � � � ,,;�� <ac �.s� x m � c ; � X� � . �� t,t�;�ass — a '� �� i° � �3 n' fi � � J vsA ,,�� k.� 3 q, �-,�,�' o- � r Y � i:� i � �.�, �e,v�' - �`�`'�'u�S :3 � k � 6 Y * '� ��' �� d' c . Y " qi � � �' � < „c" x t .rr "� 3 a�i� � �� °�* �d��/Y" , �; ��3 � k � � , . f �'$�� ."'�n i�xi�v. ,�c� %�"`�� j �a { �� x1 • �"< n � � �`�� f'� � �. �TM '�'� A:. T ��' � ? ,�` +� �� ,�6x� � 'l y'�n�; � ax �Y rt -:� �s;, .:`�. �, Ft4� �'Aw"'�'� �.�-, r y ?� .. �".�`' �• f+G S 4 ti�'wFJ' � k � . z#Y r �� " � q 5`�"�a �. a � �� ¢ �� St.� . � sX � ..�: � � � & �� v �i: ,:�� ',� .. w„ Village of Tequesta Public Safety Officers' Pension Fund 2nd Quarter 2010 T�� : � '; ��1�.�1V � r�. � ��V� ti�' �'�' �"_ fi U e; [):A ! 1 ti G Rel t� I'. c; (> >S sirr�p[�i�1g ywrr i�ivesh�iei�t rrnd�rlrrerary r�frrisiaus (=-� �.. �, � o u-t l�.�c� , � - � c� e r� d c�- � -�� No Text 2 Quarter 2010 Market Environment �� rt�E�, � BOGDAHN Peergroups were not fully updated as of the date this report was published. GR�UP Peergroups are subject to change and a new report may be issued if necessary. The Market Environment Major Market Index PerFormance Period Ended: June 30, 2010 Quarter Performance ■ Even the most optimistic market participants had no shortage of negative events to consider during the second quarter. Msaa,cwXus -,2.3� MSCI EAFE aa.�i Domestically, investors had to assess the potential impact of MSCI Emerg Mkts •s.si financial reform, stubbornly slow employment growth and a burgeoning Federal deficit. Globally, investors had to consider S8P 500 -t�.a/ the potential contagion of sovereign credit issues in Europe Russe113000 -��.ai questionable global growth and evolving Chinese currency Russe111000 -tt.ai Russell MidCap -s.s/ policy. If this collection of macro issues wasn't enough to give R„SSeu Z000 -9.9� you pause, there was (and still is) oil spilling into the Gulf of Mexico. One individual pulling-back in the face of such BarclaysUSAgg a.s� challenges is certainly understandable, but if we collectively Barclays US Govt 4.z� pause to wait and see "what may happen", the unfortunate BarclaysMBS 2.9� Barclays Corp IG 3.ai result will likely be deflation. While maintaining a long-term strategy in such an uncertain environment can be difficult, we 3-MonthT-Bill o.o� are confident in the market's ability to persevere over the long- _2o.o�ro -�5.o°ro -�o.o�io -s.o�ro o.o�ro s.oio �o.o�ro term. • Domestic and international equity benchmarks suffered their OneYearPerformance largest pullback in more than a year during the 2"d quarter. nnsciACwXus u,0.9� , While it is always tempting to fault a single issue as the cause MSCIEAFE 6.4� of negative performance, it is more likely a combination of nnsaemerynnkts 23.5� cascading events that resulted in a general reassessment of i market risk tolerance after more than a year of consistent SSiP SOO 14.4% ; Russell 3000 � s.� r gains. In contrast to equity markets, fixed income benchmarks Russe111000 ,5.z� posted impressive quarterly performance as a"flight to quality" Russell MidCap 25., � i drove investors to U.S. Treasury securities, which resulted in RuSSeu z000 2,.5� i lower yields and higher prices. Barclays US Agg ss i Barclays US Govt ssi ■ Despite the 2"d quarter's negative equity performance OC12- garclaysMBS �.5� year results were solid for each of the equity and fixed income BarclaysCorplG �5.9� benchmarks on the chart. Emerging markets and domestic small and mid cap issues posted the year's most outsized 3-MonthT-Bill o.,� equity gains. Not to be outdone, the Barclays Aggregate Bond o.o�io 5.o�io io.o�ia �s.o�io 2o.o�io 2e.o°ro 3o.o�ro index return of 9.5% was also impressive. �� I'tt1, Source: Barclays Capital, MSCI Capital Markets, Russell Investments 2 BOGDAHN Peergroups were not fully updated as of the date this report was published. (_' R�UP Peergroups are subject to change and a new report may be issued if necessary. � The Market Environment Domestic Equity Style Index Performance Period Ended: June 30, 2010 Quarter Performance ■ Value managed to outpace growth on a relative basis for the quarter at each capitalization level with the exception of small 3000 Value -��.� i cap stocks (Russell 2000). The chart illustrates that the 2�d 30001ndex -tt.s/ 3000 Growth -� �.s i quarter's style-based performance bands were much more narrow than those realized over the last several quarters. In 1000Value -�a.i/ fact, the narrow 140 basis point differential between small cap 10001ndex -��.ai value and growth returns represented the quarter's widest 1000Growth •��.�i style-based range. This quarter's narrower performance span was not surprising given the widespread losses realized by MidCapVatue -9.s% the most heavily-weighted economic sectors of the various MidCapindex -s.si capitalization-based style benchmarks. nn�acapc�oWcn -,o.z� 2000Value -to.si 20001ndex -s.si 2000Growth -s.z/ -15.0% -10.0% -5.0% 0.0% 5.0% OneYear PerFormance ■ The range of style-based benchmark performance is much 3000Value ,�.6� broader over the one-year period and favors value over 30001ndex ,s.�� growth across the capitalization spectrum. The value-based 3000Growth ,3.9� benchmarks' outperformance over the one-year period was largely driven by the strong financial sector performance 1000Value ,6.9� during the 3rd quarter of 2009 and the 1St quarter of 2010. �000inaeX ,s.2� While the one-year results are certainly impressive in an 1000Growth 13.6% absolute sense, the inclusion of the 2�d quarter's negative performance coupled with the "roll-off' of the 2"d quarter of MidCapValue 28.9� MidCap Index 2s.� / 2009's strong performance (Russell 1000: +16.5%) resulted in MidCapGrowth Z,.3� a significant downshift in the reported one-year performance from last quarter. Z000vaiue 25.,� 2000 Index 2�.s i 2000 Growth ta.o r 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% �� THE Source: Russell Investments 3 B�GDAH�T 1V Peergroups were not fully updated as of the date this report was published. GR�UP Peergroups are subject to change and a new report may be issued if necessary. The Market Environment GICS Sector Performance &(Quarter-End Sector Weight) Period Ended: June 30, 2010 'QrR Russe111000 O i-Year ■ Large cap stock performance was negative across the various Global Industry Classification Standard (GICS) sectors for the Energy(70.3 "12'6' 3.5% quarter. There were few places for portfolios to shift or hide Materials(3.8° -'S.Z' with seven of the ten sectors of the Russell 1000 index down ,6.Sr o Industrials(10.9%) �12'Zi more than 10 /o for the quarter. In a reversal of last quarter's 26.6% sector results, telecommunication services (-5.0%) and utilities ConsumerDisc(10.7%) ��' 29.3 % (-3.8%) sectors were the strongest relative performing sectors ConsumerStaples(10.3° $ � 5 ' of the benchmark durin the 2�d uarter. Such weak results 13.3% 9 q HealthCare(12.2%) ��' on a broad sector level means that individual issue selections ,0.3� and uninvested cash positions will likely play a dominate roll in Financials(16.7° •13.3% t75 II1dNIdUaI IIIV@Stlll@flt CT181lag@f f@SUItS. InfoTechnology(18.4%) -�2'Zi 76:3 % � Telecom Services (2.9%) -5 � For the trailing one-year period, each of the ten GICS sectors 5.8� in the Russell 1000 index posted positive pertormance. In Utilities(3.8° �3�8' 63� contrast to the quarterly results, seven of the ten sectors of the Russell 1000 returned in excess of 10% for the period. -3o.o�io -2o.o�ra -io.o�io o.o�io �o.o�ro Zo.o�ia so.o�io ao.o�ro ■°rR Russe112000 ■ Small cap stock performance was also negative across each 07-Year of the GICS sectors for the 2"d quarter. Even though the quarter's sector losses in the Russell 2000 were generally Energy(5.4° -73�8' 2,9,, more mild than those realized in the large cap index, it was Materials(4.8°/ -"�" 38.1% still a very difficult quarter for small cap stocks. While issue Industrials(15.4% �'�" selections and cash positions will be paramount in attributing 19 � 6 ' the quarter's individual manager results, sector positioning to ConsumerDisc(13.8° ""�s' sa.o� industrials ( consumer staples ( and UtIIIt12S ConsumerStaples(3.3% �'4� zi.3i (-3.2%) will also likely play a role. Health Care (13.8%) -�0.3 i 13.2 % ■ nd Financials(21.4%) � Despite the 2 quarter's small cap selloff, the one-year results z,.z� forthe Russell 2000 index GICS sectors are impressive. Each InfoTechnology(17.9° $�" Z � o , sector of the Russell 2000 was positive over the period and Telecom Services (7.0%) -9. / six of ten sectors returned in excess of 20%. '� Utilities(3.2%) -3zi 13.7 % -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% �� 'I�fif: Source: Thompson Financial q � ��GDA� Peergroups were not fully updated as of the date this report was published. �jrR�UP Peergroups are subject to change and a new report may be issued if necessary. The Market Environment Top 10 Index Weights & Performance for the 2nd Quarter Period Ended: June 30, 2010 � � ., - - � -� - - - -- E�on P1 .h1f Co,p XOM 2.77°/ -14.2 % Er�erq� � Human C, � rme ence�> H,Sf i�5°/ -6.4 % Heaith Ca-e- Apple Inc AAPL 2.00 % 7.1% Information Technology Ual Corp UAUA 0.32% -1.8% Industrials Microsoft Corp MSFT 1.90% -21.0 % Information Technology Tupperware Brands Corp TUP 0.26 % -0.6% Consumer Discretionary General Electric Co GE 1.61% -20.3% Industrials Skyworks Solutions Inc SWKS 0.26% -4.7% Information Technology Procter & Gamble Co PG 1.59 % -4.5 % Consumer Staples Ares Cap Corp ARCC 025 % -3.5% Financials Johnson & Johnson JNJ 1.51 % -8.6 % Health Care Domtar Corp UFS 0.25 % -6.3 % Materials Intemational Business IBM 1.49% -3.2 % Information Technology E Trade Financial Corp ETFC 0.24 -9.4% Financials Bank Of America Corpor BAC 1.47 -19.4% Financials Polycom Inc PLCM 0.24 % -2.4% Information Technology Jpmorgan Chase & Co JPM 1.45 -18.1 % Financials Solera Holdings Inc SLH 024% -3.5% Information Technology Weils Fargo & Co New WFC 1.38 % -17.6% Financials Developers Diversified DDR 0.23 % -9.1% Financials - ----- -------- -- Netflix Inc NFLX 0.04 % 47.3`i Consumer Discretionary Neurocrine Biosciences NBIX 0.02 % 119.6`7 Health Care Mariner Energy Inc ME 0.02% 43.5% Energy Akom Inc AKRX 0.01% 94.1% Health Care Abraxis Bioscience Inc ABII 0.00% 43.4 % Health Care Cirrus Logic Inc CRUS 0.08 % 88.4 % Information Technology Glg Partners Inc GLG 0.01 % 42.7% Financials Us Gold Corporation UXG 0.03 % 85.6% Materials Sybase Inc SY 0.04 % 38.7 Information Technology Idenix Pharmaceuticals IDIX 0.01% 77.3% Health Care Akamai Technologies In AKAM 0.06 29.2% Information Technology Trimas Corp TRS 0.01% 74.3 % Industrials Valeant Pharmaceutical VRX 0.03% 21.9°/ Health Care Astronics Corp ATRO 0.01 % 66.8 % Industrials Sandisk Corp SNDK 0.08% 21.5% Information Technology Cpi Corp CPY 0.01 % 63.3% Consumer Discretionary Newmont Mining Corp NEM 0.23 21.4% Materials Southwest Bancorp Inc OKSB 0.02 % 60.7% Financials Chipotl� ti1Px!�an C�ril� CMG 0.04% 21.4°� rons i��r D;scr�t �nar� Prnn-er C�n� Inc ^de�ni F'WER 0_05 % 60.0 o In`nrmafinr l'�ch�nlc�v �, r,y� . ' � � ..�.,ia � . , n . . . . . . .. � � . . � s . .u ... � : ... . . . . . � � . , �;. . - . . . . . . . , , .. _:. ' - t . ,;.' ' � __._-_'_ __ _ _ ... __ '_--'--'- Anadarko Pete Corp APC 0.25% -50,3` I t;iergy Intermu� :�; !1 °4 ' �� Fa,tn C�a�e � ��„ , � � + Office Depot Inc ODP 0.02% -49.4% Consumer Discretionary First Bancorp P R FBP 0.01 % -78.0 % Financials Ak Stl Hldg Corp AKS 0.02 % -47.7 % Materials Affymax Inc AFFY 0.04°/ -74.5 % Health Care Massey Energy Corp MEE 0.03% -47.6 % Energy Yrc Worldwide Inc YRCW 0.04% -66.9% Industrials Cobalt Intl Energy Inc CIE 0.01 % -45.2°/ Energy Oxigene Inc OXGN 0.00% -66.3 % Health Care Seahawk Drilling Inc HAWK 0.00 % -42.9% Energy Pacific Cap Bancorp Ne PCBC 0.01% -65.7% Financials Nvidia Corp NVDA 0.07 % -41.3% Information Technology South Finl Group Inc TSFG 0.01 % -63.1% Financials Sears Hldgs Corp SHLD 0.04% -40.4% Consumer Discretionary Discovery Laboratories DSCO 0.01% -59.7% Health Care Waddell & Reed Finl In WDR 0.02 % -39.3°/ Financials Fuelcell Energy Inc FCEL 0.02 % -58.2 % Industrials United States Stl Corp X 0.07% -39.3% Materials Old Second Bancorp Inc OSBC 0.00% -57.5% Financials ��"� T�H1. Source: Thompson Financial 5 z #, BOGDAHN Peergroups were not fully updated as of the date this report was published. �'* (` R�UP Peergroups are subject to change and a new report may be issued if necessary. �T The Market Environment International and Regional Market Index Performance (# Countries) Period Ended: June 30, 2010 ■QTR(USD) (�uarterPerformance o QTR (Local) ■ Much like the domestic indices, international markets also AC World x US (44) -�z'3i suffered during the quarter due to concerns over global credit _ and sustainable growth. The "flight" to the safety of the U.S. -�3.4� WORLD x US (23) io 4 � Dollar (USD) that typically occurs during periods of global EAFE(22) -t3.si unrest is clearly evident in the USD versus local currency _, international index results. Relative to the USD, 39 of the 44 Europe(16) -1a.si countries that make up the MSCI-ACWxUS index saw their -9 � 5 ' o Pacific (5) -�� s � currencies depreciate by an average of -6.0 /o. In contrast, _,3.0, Japan was one of the five ACWxUS countries that managed EmergingMkt(21) $3 ' to gain relative to the USD during the quarter with an -s.s� -15.3 % appreciation of +4.8% E"' E"�°PQ �5� _90� EM Asia (8) -s � � ■ Weak performance in developed markets (-13.8%) was -27 EM Latin Amer (5) -� �' � spread broadly across the 22 countries in the MSCI-EAFE -,0.3� index. In fact, Singapore's USD return of +0.0% was the only _ZO.o�ra -�s.o�ia -io.o�ro -s.o�io o.o�ro 5.o°ra positive country in the index. In contrast to Singapore, it should certainly come as no surprise that Greece was the ��_Year(USD) worst erformin count in the index with a return of -40.4% One-YearPerformance P 9 rY o1-Year(Local) for the quarter. The emerging markets index return of -8.3% 109 for the quarter was down less than developed markets for the AC WorldxUS(44) �24� quarter due to stronger relative results in the emerging Asian WORLDxUS(23) '� countries as well as some s oradic ositive individual count 10.3 i � p p ry EAFE (22) s.a i results. Over the last year, the emerging market index shows �o.4r a performance advantage of more than 3x the developing Europe(16) 6.3' market index return. 1.3 Pacific (5) s.s � A.8 % ■ It is interesting to note that MSCI reclassified Israel as a EmergingMkt(21) 23.5' developed market country as part of its semi-annual index 20 � 0 EM Eu�Op2 (5) Z�,pe� review in May. While Israel's 0.9 /o weight in the MSCI-EAFE 30.5� index at the end of the quarter may not seem significant, it is EMAsia(8) Z3.°' the first country in the developed index that does not fall into t9 � 9 ' EM Latin Amer (5) 25'� i the classic definition of (E)urope, (A)ustralasia or (F)ar (E)ast. ,a.3r -5.0% 0.0% 5.0% 10.0% 15.0% 20.0°/a 25.0% 30.0% 35.0% r +� I I t. Source: MSCI Capital Markets g �� BOGDAHN Peergroups were not fully updated as of the date this report was published. � GRQUP Peergroups are subject to change and a new report may be issued if necessary. The Market Environment U.S. Dollar International Index Attribution & Country Detail Period Ended: June 30, 2010 * �wk, . . , �� o . � �� ,., �,: . , , . , : ; � i - , Japan 23.3% 16.0% -10.1 % 0.9% United Kin dom 21.0 % 14.5% -13.8% 8.6°/ Energy 7.1 % -22.5% -9.2% France 9.8 % 6.7% -18.3 % 1.7% Materials 10.1% -18.1% 13.4% Australia 8.1% 5.6% -19.0% 18.1% IndUStrialS 12.3% -10.9% 13.9% Switzerland 8.0 % 5.5°/ -11.3% 18.0% Germany 7.8% 5.4% -12.1 % 7.8% ConsumerDiscretionary 10.3% -10.1% 10.4% Spain 3.5/ 2.a% -2o.a% -1z.s°/ Consumer Staples 10.6% -7.3% 19.4% Sweden 2.9% 2.0% -6.6% 30.8% Health Care 9.0% -9.6% 10.8% Italy 2.8°/ 2.0 � -21.0% -9.2 % Netherlands 2.6% 1.8 % -13.0% 17.4% Financials 24.4% -16.g% 0.8% Hong Kong 2.6% 1.8% -5.8% 14.3% Information Technology 5.2% -14.7% 6.3°/a Singapore 1.�% �.2 / o.o% 29.a /o Finland 1.0% 0.7% -25.9% -9.4 % Telecommunication Services 5.6% - 9.3% 4.4% Denmark 1.0% 0.7% - 5.4% 19.4% Utilities 5.5% -12.5% -4.0% Belgium 0.9% 0.7% -12.3% 13.6% i� � Israel 0.9 % 0.6 % -18.4°/ 13.2% Norway 0.7% 0.5 % -17.5% 12.3 % Austria 0.3% 0.2% -21.9°/ -10.0% Ireland 0.3 % 0.2 % -19.8 % -7.0% Greece 0.3% 0.2% -40.4% -46.7% Portugal 0.3 % 0.2 % -16.7 % -9.8% New Zealand 0.1 % 0.1 % -10.5% 8.6% �i i a a„' '_ ; k.; ��s a � Canada 7.9% -10.3°/ 18.6% �. Energy 10.3°/o -�6.7% 0.3% China 4.4% -4.5% 11.1% Materials 11.8% -15.2% 19.9% Brazil 3.6% -15.2°� 22.1 / Industrials 10.5% -10.5% 14.9% Korea 3.z / -7.s% 32.3% Taiwan 2.5% - 9.3% 16.1 % Consumer Discretionary 8.9% -8.6% 15.2% India 1.9% -2.2% 32.0% Consumer Staples 9.1 % -6.3% 22.3% South Africa 1.7% -9.5% 18.4% Health Care 6.4% -9.4% 12.Oo�o Russia 1.5% - 15.4% 26.s% Mexico 1.0°/ -9.0 % 31.7% Financials 25.3% -14.7% �•2% Malaysia 0.7% 0.2% 33.9% Information Technology 6.9% -13.3% 14.6% Indonesia 0.6% 4.4% 66.9% Telecommunication Services 6.1 % -7,0% 7 7% Turkey o.4 / -4.0 / 44.3 /o Chile 0.4% 2.9% 25.8 % Utilities 4.8% -11.0% -0.5% Thailand 0.4°/ -1.7% 35.1 % � i �' , a' Poland 0.3% -21.6% 24.0% Colombia 0.2 % 3.6% 53.6 % Peru 0.1 % 4.2% 52.2% Egypt 0.1% -13.4% 11.4% Philippines 0.1% 3.1 % 37.2% Hungary 0.1°/ -30.2% 15.5°/ Czech Republic 0.1% -13.0% -0.6% Morocco 0.0°/ -4.1% -11.1 % � i� i�, s ,. ��: BOGDAHN Source: MSCI Capital Markets, & Franklin/Templeton � Peergroups were not fully updated as of the date this report was published. ��' GROUP Peergroups are subject to change and a new report may be issued if necessary. The Market Environment Domestic Credit Sector & Broad Market Maturity Performance Period Ended: June 30, 2010 Quarter Performance • The equity market unrest that occurred during the quarter was largely a benefit to fixed income indices. Foreign sovereign ' '� credit worries and the looming possibility of a"double-dip" AA - s.� i recession overshadowed the corporate spread compression A "' 3.�� that dominated fixed income results for most of the last year. BBB Z . B , o The resulting "flight to quality" drove rates lower across the � BBB - Treasury yield curve. This general rate decline enhanced the Govt a.s i performance of long-dated and high-quality bond issues. The market's changing risk aversion was evident in the high yield Mort z.9� index (<BBB) return of -0.1%. This performance marked the G/M/C =6roadMarket(Government+Mortgage+Corporate) first quarter in more than a year that high yield was not the '�-3yrG/M/C ,.sr best performing segment of the fixed income market. �-sY��nn�c °. 2.�� 1-10yr G/M/C 2.s % 10+yr G/M/C a.s / -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0 % OneYear Performance ■ Despite questions surrounding the sustainability of the global economic recovery that dominated the quarter's results, the A � �� one-year performance of the various bond market indices still '�' 12 �" shows the effects of sizable credit compression in corporate A "' `= ,5.'� issues. The Government bond index, which did not benefit BBB ='+9.6% from the credit compression in corporate bonds, posted a <BBS •�a� �� 5.� �` 2�.5� respectable +6.5% over the last year. � 6.5, � Mort = z6/ 1-3yr G/MIC s.a / ' I I 1-Syr G/M/C s.a i 1-10yr G/M/C a.t / 10+yr G/M/C �s-� % 0.0°/a 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% �� "I�fIE Source: Merrill Lynch Index System $ � R ��DAHN L Peergroups were not fully updated as of the date this report was published. GR�UP Peergroups are subject to change and a new report may be issued if necessary. The Market Environment Market Rate & Yield Curve Comparison Period Ended: June 30, 2010 1-Year Trailing Market Rates ■ While the quarter began with economists and market 5.00 participants speculating on the timing of the Fed reversing its <�kFeaFUnds Ra,e —TEOS —s-Mo�tn�� stance on short-term interest rates and assessing the potential 4.50 _gqq�10yrSpread —10yrTreasury �10yrTIPs of higher inflation, it certainly didn't end that way. As the a.00 quarter progressed, the market's movements became more and more dominated by sovereign credit concerns in Europe 3.5o y � a as well as weaker than expected domestic economic s.00 A_ readings. These market events are easily visualized in the 2.50 _--°^�' � ,� � trailing market rates chart where domestic inflation expectations receded (10yr TIPs), credit spreads widened 2.00 (BAA/10yr Spread) and investors fled to the quality of i.so »-, r=. �� -.,.�� -._,�-.,,.- -� t:.., Treasuries that drove yields lower (10yr Treasury). �.00 0.50 0.00 �"" Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Treasury Yield Curve s.00 ■ After trading in a relatively narrow range for much of the last —ti-6/30/2009 —�12/31/2009 0 3/31/2010 --0-6/30/2010 year, the yield curve showed a marked reduction in rates s.00 across the maturity spectrum during the quarter. The �_g benchmark 10-Year Treasury bond closed the quarter with a yield of 2.98°/a, which was down 87 basis points from the a.00 0 3.84% yield on 3/31/10. The lower curve reflects the markeYs concern that the global economy may not continue to recover 3.00 without ongoing coordinated Government support. 2.00 1.00 0.00 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr ��"� �Ct�1F, Source: Morfgage-X.com , US Department of Treasury & St. Louis Fed 9 � j � �GDAHN 1J Peergroups were not fully updated as of the date this report was published. GR�UP Peergroups are subject to change and a new report may be issued if necessary. Tequesta Public Safety Of�cers' Pension Fund June 30, 2010 � � : � i i � � : � March 31, 2010 :$5,359,607 June 30, 2010 :$5,137,496 az�" //. `,� ra A / � ,pg F I � f'� ° 3 8 Y -�� ..,. ..y E . � � �„ �' � L � 4 / � y 1 � 't . � ° ..:mt+ 5�, . '�;�'�'Yj� �� X '� �,�..M':�3 x-��' ��h(r?. i: « `� Segments Market Value Allocation Segments Market Value Allocation ($) (%) ($) (%) ■ Equiry 2,289,829 44.6 ■ Equity 3,228,822 60.2 � International Equity 515,322 10.0 � Fixed Income 1,762,953 32.9 ■ Fixed Income 2,115,285 41.2 ■ Cash Equivalent 367,832 6.9 ■ Cash Equivalent 217,059 4.2 �� t'�it �o � , BOGDAHN Peergroups were not fully updated as of the date this report was published. GR�UP Peergroups are subject to change and a new report may be issued if necessary. Tequesta Public Safety Officers' Pension Fund June 30, 2010 � i : � I I � � : � March 31, 2010 :$5,359,607 June 30, 2010 :$5,137,496 _ . . � .,. y �. /�� . ......\ / � k f Market Value Allocation �$) �%) Market Value Allocation ■ Rockwood Equity 2,320,509 45Z ($) (%) 0 Rockwood Fixed Income 2,301,564 44.8 ■ Rockwood Capital Advisars Balanced Account 5,340,721 99.6 ■ Europacific Growth (RERGX) 515,322 10.0 � Checking Account 18,886 0.4 ■ Checking Account 100 - ��"� I�Hi: 11 � ; BOGDAHN Peergroups were not fully updated as of the date this report was published. ("` R�UP Peergroups are subject to change and a new report may be issued if necessary. v� Tequesta Public Safety Officers' Pension Fund Asset Allocation vs. Target Allocation As of June 30, 2010 June 30, 2010 Cash Equivalent� 4.2% ECIUity -5.4% Fixed lncome I 2% Intemational Equity 0.0% -10.0% -8.0% �.0°/u 0.0% 4.0% 8.0% 10.0% � Allocation Differences June 30, 2010 Market Value Allocation Target ��) �%) (%) Cash Equivalent 217,059 4.2 - Equity 2,289,829 44.( 50.0 Fixed Income 2,115,285 41.2 40.0 International Equity 515,322 10.0 10.0 Total Fund 5,137,496 100.0 100.0 �,_� Tut�. 12 � BOGDAHN Peergroups were not fully updated as of the date this report was pubtished. GR�UP Peergroups are subject to change and a new report may be issued if necessary. Tequesta Public Safety Officers' Pension Fund Asset Allocation History As of June 30, 2010 Asset Allocation History by Portfolio � i � i i r• ii� •� ii� �i� Rockwood Equity 2,320,509 45.17 - - - - - - - - Rockwood Fixed Income 2,301,564 44.80 - - - - - - - - Europacific Growth (RERGX) 515,322 10.03 - - - - - - - - Rockwood Capital Advisors Balanced Aceount - - 5,340,721 99.65 4,940,176 99.55 4,680,910 99.94 4,108,133 99.56 Checking Account 100 - 18,886 0.35 22,428 0.45 3,030 0.06 18,012 0.44 Total Fund 5,137,496 100.00 5,359,607 100.00 4,962,603 100.00 4,683,940 100.00 4,126,146 100.00 Asset Allocation Hi�trn°�� bti� Sc��ie��! 100.0 ,� Y ,a.,.,, - — . ,.rf.. �r � , . . _--✓�. �._ � .::� _ . :a,h « � � �. . „ � :, ..�_.,` a_. �,�,w 80.0 � ^ ;. 0 60.0 `i , . . . . . � � + . "°'-' . �. v1 mv _ � � .. ., _ i� m , o ..,...�� :. ,N.�., . .. �, .,'� _ �a.. -, � -. , -:�, _ ,. O i U 4�.� 0 Q 20.0 0.0 7/07 10/07 1/08 4/08 7/08 10/08 1/09 4/09 7/09 10/09 1/10 4/10 6/10 �� Equity Q Intemational Equity � Fixed Income � Cash Equivalent �� rH�. ,3 � . BOGDAHN Peergroups were not fully updated as of the date this report was published. ('` R�UP Peergroups are subject to change and a new report may be issued if necessary. �l Tequesta Public Safety Officers' Pension Fund Financial Reconciliation Quarter to Date 1 Quarter Ending June 30, 2010 , � � kt;r.1*c��x��! 4�.c�c,�t,�� _ 2,772,29=1 - - - - � 5,31)5 -457,0)0 2,320,509 Rockwood Fixed Income - 2,206,055 74,858 - -6,926 -8,268 30,085 5,760 2,301,564 Europacitic Growth (RERGX) - 550,000 - - - - - -34,678 515,322 Rockwood Capital Advisors Balanced Account 5,340,721 -5,509,A30 55,774 - - -1,582 -10,172 125,090 - Checking Account 18,886 -18,519 - - - -268 - - 100 Total Fund 5,359,607 - 130,632 -6,926 -10,118 25,218 -360,917 5,137,496 �� BOGDAHN 14 � Peergroups were not fully updated as of the date this report was published. !` R�UP Peergroups are subject to change and a new report may be issued if necessary. �T . � Tequesta Public Safety Officers' Pension Fund Financial Reconciliation Fiscal Year to Date October 1, 2009 To June 30, 2010 ,.. �; ,. �� '��, � � � Rockwood Equitv - 2,772,294 - - - - 5.30g -4$7,090 2,320.509 Rockwood Fixed Income - 2,206,055 74,858 - -6,926 -8,268 30,085 5,760 2,301,564 Europacific Growth (RERGX) - 550,000 - - - - - -34,678 515,322 Rockwood Capital Advisors Balanced Account 4,680,910 -5,569,830 351,255 - - -3,661 38,579 502,746 - Checking Account 3,030 41,481 - - -12,526 -31,885 - - 100 Total Fund 4,683,940 - 426,113 -19,452 -43,813 73,969 16,739 5,137,496 `^ .ilil`, �� 15 � � BOGDAHN Peergroups were not fully updated as of the date this report was published. (_` R�UP Peergroups are subject to change and a new report may be issued if necessary. �1 Tequesta Public Safety Officers' Pension Fund Comparative Performance Trailing Returns As of June 30, 2010 � ii� �� • ' i •� � i. • Total Fund (Net) -6.29 1.60 9.85 -3.80 -2.73 2.56 OS/O1/2005 �f�� Fun�� k'o�ia�, , '� 7 �� ` ._ - (.��) - _ `)' __ Difference -0.51 0.01 -2.47 -2A1 0.19 0.19 Total Fund (Gross) -6.17 (64) 2.00 (29) 10.42 (88) -3.42 (68) -2.30 (30) 3.04 N/A OS/Ol/2005 T131�1� f ttllit �'ll�l��' -l.'S ( �` 1 � .:�� {-�Il l � '. �' l, ��"1 { - I . �� ( �{? i -�.�j} 1-� 3 j ,..�� ;1, Difference -0.39 0.41 -1.90 -1.63 0.62 0.67 All Public Plans-Total Fund Median -5.83 1.18 12.79 -2.43 -3.32 N/A Total Domestic Equity -13.57 (94) -1.56 (63) 1010 (89) -12.73 (97) -10.18 (75) -1.02 (90) 04/01/2005 �,�:P ;ui� -1 1.-�.� (`11 -l.�?' � ��?i I-4 -! � ;3�i> -`�.I l i�;� -�� u.i !e`,�) -f?.�n � -�o Difference -2.14 -0.54 -4.33 -4.62 -037 -0.52 US Care/Large Cap Equity (SA+CF) Median -ll.42 -1.02 13.80 -7.99 -9.21 0.17 Total International Equity N/A N/A N/A N/A N/A -10.29 (28) OS/Ol/2010 �:�t� - I;_�-'� t%`>1 - 11.t?t� I�)_;) E,.?" 1�;�1) - 1-1.�( 1 ��%) - I�,�r� (wn) - 1�.'? dSl�i Difference N/A N/A N/A N/A N/A 194 international Eqiiiry Large-Cap Growth Funds (MF) Median -12.36 -739 9.35 -13.58 -1 L13 -10.90 Total Fixed Income 2.67 (92) 4.73 (97) 8.45 (94) 6.42 (93) 6.87 (83) 5.27 (90) 04/O1/2005 ��(ll"Crlf Jilli'1 l'.`;. �i��l��I�itl��i'ili.t�!�ctj11 ".t)� {��,.�.� -} ti� (� �� } (�)�-) f�.%� I�� !�,<)� (;��) i �:�d} {;t�) Difference -0.30 -0.15 0.16 -0.35 -0.10 -0.22 US Broad Market Core Fixed Income (SA+CF) Median 3.40 6.06 11.10 8.8] 8.12 622 Returns for periods greater than one year are annualized. I�fiF. Returns are expressed as percentages. � BOGDAHN Returns prior ro June 2010 do not include cash. 16 � Peergroups were not fully updated as of the date this report was pubiished. !-` R�UP Peergroups are subject to change and a new report may be issued if necessary. � � � M Tequesta Public Safety Officers' Pension Fund Comparative Performance Trailing Returns As of June 30, 2010 � ii� �� i i i •� � i. Rockwood Equity -13.57 (94) -L56 (63) 10.10 (89) -12.73 (97) -10.18 (75) -16.14 (100)OS/Ol/2010 S�P i00 �-I i �i3 (�I } -I.(1? ��O) 1-3.�� I ��>) -�.1 I (�5) -9.81 ((ii) -6'.ti0 (-�<�) Difference -2.14 -0.54 -433 -4.62 -0.37 -3.34 US Core/Large Cap Equity (SA+CF) Median -11.42 -1.02 13.80 -7.99 -9.21 -12.90 Europacific Growth (RERGX) N/A N/A N/A N/A N/A -0.79 (45) 06/Ol/2010 M�( I l:;\FI::Inc1�� -I;.�� (l`a1 -Il.(it) (!i;� (,.;' �`te) -la.;tt (�%i -i_.'>-1 ��.a� _O'); t��) Difference N/A N/A N/A N/A N/A 0.18 International Equity Large-Cap Growth Funds (MF) Median -12.36 -7.39 9.35 -13.58 -11.13 -0.86 Rockwood Fised Income 2.67 (92) 4.73 (97) 8.45 (94) 6.42 (93) 6.87 (83) 1.63 (86) OS/O1/2010 E3�arctil� lntcruu��iiatc U,S. Gi��rrn�ncni�C'rc�lit �.�)7 fT-�i �.�� (�?51 �.�'�> Ir>�l fi.7�' {t>;} 6.��? ik?i '_.f)� t``�) Difference -0.30 -0.15 0.16 -0.35 -0.10 -0.45 US Broad Market Core Fixed Income (SA+CF) Median 3.40 6.06 11. ] 0 8.81 8.12 2.15 Returns for periods greater than one year are annualized. ^ .�.� ��, Returns are expressed as percentages. �\ j�O� Rehims prior to June 2010 do not include cash. � 7 �, 1� Vr1J 1 1 L r Peergroups were not fully updated as of the date this report was published. !'` R�UP Peergroups are subject to change and a new report may be issued if necessary. `T Tequesta Public Safety Officers' Pension Fund Comparative Performance Fiscal Year Returns As of June 30, 2010 � ii� � ii; � ii � ii, � i� � ii- � � � � � � i i •� ii� •� ii; �� ii �� ii� •� �t Total Fund (Net) 1.60 -1.39 -11.80 14.24 4.07 N/A Tc Ft�nd i'ciit��.� i ;�d� �) - 1`� _ f ., - 4C� 1 �_��y ' ;';; w �'�, Difference 0.01 -1.87 0.66 2.22 -3.81 N/A Total Fund (Gross) 2.00 (29) -112 (76) -ll.34 (19) 14.82 (43) 4.67 (98) N/A Ic,tal l�und Folicv I�s? (1f)1 t�.-!`� (t -I�' 1b t��i I<.t).:' t')t�> � ti� (G`�i 'v :1 Difference 0.41 -1.60 112 2.80 -3.21 N/A All Public Plans-Total Fund Median 1.18 1.34 -13.67 14.48 8.74 12.54 Total Domestic Equity -1.56 (63) -10.99 (94) -21.39 (53) 21.99 (10) 5.38 (97) N/A '';�'e:l' �f!!f -� 11� {�I)1 -(�'�i i(i!i! _?� ;:a�, ifi�i �(y-i-� (��til ?13 ;'!i f`'4 �`."' ;O! Difference -0.54 -4.08 0.59 5.55 -5.41 N/A US Core/Large Cap Equity (SA+CF) Median -1.02 -6.47 -21.14 16.64 10.82 14.34 Total International Equity N/A N/A N/A N/A N/A N/A �.15� 1 [ ,16 1 1,��.lcs -i i.(lt) ('?�) ;.h(1 i ;�,� �;i).� ; �;�3} �� t! (7yi 19 !,� t itii �h �, t-�!)) Difference N/A N/A N/A N/A N/A N/A International Equity Large-Cap Growth Fimds (MF) Median -7.39 0.79 -28.42 28.39 17.16 26.19 Total Fixed Income 4.73 (97) 9.03 (92) 3.55 (36) 5.93 (9) 3.88 (45) N/A I��rc��p dratco�i��L�li�,it� l' S. (��rn!�i�rnt��Cr��clii �_�;`� ju�) S�) i)i (;,a)i ? � 4�Il) , �; r� �;;_� ;�;�� :1;; ,�'+`ri Difference -0.15 -0.98 0.42 0.50 0.34 N/A US Broad Market Core Fixed Income (SA+CF) Median 6.06 12.49 2.56 5.16 3.86 3.12 Returns for periods greater than one year are annualized. � 'I�H F: Returns are expressed as percentages. � j�O! Reriuns prior to June 2010 do not include cash. 1$ � 1.) \i 1 11 r Peergroups were not fully updated as of the date this report was published. '°r (.`Rr1UP Peergroups are subject to change and a new report may be issued if necessary. � v Tequesta Public Safety Officers' Pension Fund Comparative Performance Fiscal Year Returns As of June 30, 2010 � ii� � i• � ii � ii, � ii � ii- � � � � � � i i •� ii� •� ii; -� ii •� ii� •� ii Rockwood Equity -1.56 (63) -10.99 (94) -21.39 (53) 21.99 (10) 5.38 (97) N/A `,�c'ti�''�Ellk � ;h_° i'`�,)i -( �(�±Ij _j� ;>;.: js',�) I(r -�-d i`�.J (f).�`l (_`;"i �w _'. ?{ii) Difference -0.54 -4.08 0.59 5.55 -5.41 N/A US Core/Large Cap Equity (SA+CF) Median -1.02 -6.47 -21. l4 16.64 10.82 14.34 Europacific Growth (RERGX) N/A N/A N/A N/A N/A N/A 11S( ] I.1f I. Incic��. -I I.UU �`1;� ;.�;if i'.h� -30.I3 (�`>1 �5.3K 17�)} I9.6� IIR) Zri. �� !-;9) Difference N/A N/A N/A N/A N/A N/A International Equity Large-Cap Growth Funds (MF) Median -739 0.79 -28.42 2839 1716 26.19 Rockwood Filced Income 4.73 (97) 9.03 (92) 3.55 (36) 5.93 (9) 3.88 (45) N/A f?_ir:.�� linc��ut:�ii<�t� l!.�. �: �;��R,t;��•ni ( rcc!it -4.;�;: (y'�i !(}.t�l (w�� ;.l � (-61 i �.-1_a t?�j ;.V,.1 (`��) i.-i`: j 1!)U) Difference -0.15 -0.98 0.42 0.50 0.34 N/A US Broad Market Core Fixed Income (SA+CF) Median 6.06 12.49 2.56 5.16 3.86 3.12 Returns for periods greater than one year are annualized. THI�. Returns are expressed as percentages. � , BOGDAHN Returns prior to June 2010 do not include cash. 19 ( Peergroups were not fully updated as of the date this report was published. �" GROUP Peergroups are subject to change and a new report may be issued if necessary. Tequesta Public Safety Officers' Pension Fund Total Fund (Gross) June 30, 2010 � �� • � � � � � � . � 25.00 - 30.00 - 20.00 20.00 I 5.00 - • dF 10.00 � I 0.00 �� ' . � I e � I 5.00 -�� O.pO � ° � ° ,.°. E a a �I o.uo �, � � -i o.00 • _s.00 � , -zo.00 -iaoo -I5.00 � � � � � -�---- -30.00 � � �--- � 1 Ocb20U9 1 2 3 4 5 Oct-200R Oct-2007 Oct-2006 Oct-1005 Oct-20U4 Quarter To Vear Years Years Years Years To To To To To Jun-2010 Sep-2009 Sep-2008 Sep-2007 Sep-2006 Sep-2005 ■ Total Fund (Gross) -6.17 (64) 2.00 (29) 10.42 (AR) -3.42 (63) -230 (30) 1.54 (4I) 2.16 (65) ■ Total Fund (Gross) -1.12 (76) -] L.34 (21) 14 ¢2 (43) 4.67 (97) N/A • Total Fund Policy -5.78 (48) L59 (40) 1232 (58) -1.79 (36) -292 (44) 1.0 (52) 1.94 (72) • Total Fund Policy OA8 (59) -12A6 (34) 12.02 (90) 7.8R (6O N/A Median -S.L�3 1.18 12J9 -2.43 -3.32 124 2.71 Median I.10 -13.R9 14.53 8.57 1235 I 1. ' 1 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Qaarter Qnarter Ending Ending Ending Ending Ending Ending M1lar-2010 Dec-2009 Sep-2009 Jun-2009 Mar-2009 Dec-2008 Total Fund (Gross) 5.31 (4) 3.22 (68) 8.2g (95) 5,fi3 (9$) -3A9 (12) -]0.40 (19) Total Fand Policy 3.92 (47) 3J5 (34) 10.56 (6R) 10.13 (SA) -6.51 ((>9) -I 1.73 (3C) All P�iblic Plans-Total Fimd Median 3.84 3.42 L L45 ] 0.61 -5.80 -12.83 ^ �I�tIF. 20 � �. BOGDAHN Peergroups were not fully updated as of the date this report was published. GR�UP Peergroups are subject to change and a new report may be issued if necessary. Tequesta Public Safety Officers' Pension Fund Total Fund (Gross) June 30, 2010 , � �, � �. , �, �. . zo.o - Over �� Pcrfomencc � � 12.0 c 25.0 � � 0 4.0 � � ■ _ � � � 500 . ■ ■ � � .�. ° -4 A o `u . . � . • �= i 75.0 � , �.. . � 8 � -12.0 . c.. Under 5 � �� Performance 100.0 �� i T -- _ ..--- - r - �-20.0 �� 9/OS 9/06 9/07 9/08 9/09 6110 -20.0 -12.0 -4.0 4.0 12.0 20.0 Total Period $_25 25-Median Median-75 7_5-95 Total Fund Policy( %) Count Count Count Count ■ Total Fund (Gross) ]0 3 (30%) � (40%) Z (20%) I (10%) � Under Perfom�ance � Over Perfiimiance � Mar-2008 -p- Jun-2010 • Total Fund Policy 10 0(0"/0) 3(30"/0) 5(50"/0) 2(20%) � • 1 1 ' ' I 1 I 090 R.00 - 5 �� G.00 a.on ; o.00 0 � � a.00 `_ -s.on `_ ;, v o.00 a z -10.00 - -2.00 � 0.00 5.00 I 0.00 I 5.00 20.00 29.00 0.00 5.00 10.00 I 5,00 20.00 Risk (Standard De��ation % ) Risk (Standard Deviation %) Return Standard Deviation Return Standard Devia[ion ■ Total Fund (Gross) -230 1 t.64 ■ Total Fund (Gross) 216 9.71 • Total Fuud Poticy -292 12.63 • Total Fund Policy 1.94 lOZ4 - Mcdian -332 13.12 - Mcdian 2J1 1U.81 � Tracking Up Down Sharpc Downsidc Error Market n7arket Alpha �R Ratio Beta Risk Capture Capture Total Fund (Gross) 5.03 95J8 93.49 O.IR 0.10 -027 0.85 9.2R Total Fund Policy 0.00 100.00 100.00 0.00 N/A -029 1.00 10.05 � Tracking Up Down Sharpe Downside Error Market Market Alpha �R Ratio Bet Risk Capture Capture Total Fund (Gross) 4.34 99.15 97.63 0.50 0.04 -0.01 O.R6 7.44 Total Fund Policy 0.00 L00.00 100.00 0.00 N/A -0.02 I.00 7.R6 �� TtiF. 21 � BOGDAHN Peergroups were not fully updated as of the date this report was published. �" (` R�UP Peergroups are subject to change and a new report may be issued if necessary. �i Tequesta Public Safety Officers' Pension Fund Rockwood Equity June 30, 2010 �. � � � .� � zs.00 3o.on - 20.00 ■ zo.00 I 5.00 10.00 -� .' �. 10.00 ■ � �'I ■ I n.00 -', s.00 � � e ; � � = I � _ �_ � z o.00 z -io.00- �� -i.00 � �� -20A0 . I -10.00 � i i -30.00 -I5.00 �� -40.00 � � � � -20.00 �------ --��---------�-------� �-- � - ---� �---- � - 1 Och2009 1 2 3 4 5 Oct-200R Och2U07 Oct-2110fi Oct-2UOg Oct-2004 Quarter To Year Years Years Years }'ears To To To To To Jun-2010 Sep-2009 Sep-200R Sep-2007 Sep-2006 Sep-2005 ■ RockwoodEquiry -13.57 Iy4) -156 (63) IoJO 18e) -I2.73 (97) -10.18 (75) -3.27 (7R) _�.23 �g7) � RockwoodEquity -10.99 (94) -2139 (53) 21.99 (10) 5.38 (97) N/A � S&P 500 -I1.43 (SI) -1.02 I50) 14.43 (39) -8.1I (55) A.81 167) -3.07 (GR) -0.79 (75) • S�.P 500 -6.91 (60) -2198 (65) 16.44 (58) 10.79 (j2) 1225 (80) Mcdian -IL42 -IA2 13RO J.99 A�l -2.G1 -0.10 Median -6.47 -21.14 L6.64 lOB2 14.34 1 1 1 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Marv2010 Dec-2009 Sep-2009 Jun-2009 Mar-2009 Dec-2008 Rockwood Equity S.OS (3) $,40 (74) 11.54 (90) 9.14 (95) -6.96 (14) -21.63 (49) S&P 500 539 (51) G.04 (49) ]5.C,1 (3R) 15 93 (42) -11.01 (69) -21.94 (60) OS Core/Large Cap Equity (SA+CF) Median 5.40 6.67 1528 ] 5.56 -10.43 -2 L68 �'+� 'T�Eti, 22 � BOGDAHN Peergroups were not fully updated as of the date this report was published. �"� GRQUP Peergroups are subject to change and a new report may be issued if necessary. Tequesta Public Safety Officers' Pension Fund Rockwood Equit,y June 30, 2010 ' i � 1 ' � � ' i � ' ' � zo.o - o�er o.o P crfurniancc IOA ■ .. e 25.0 � � z � e o.o - _ �c 50A � � ` Y . � � � � � � _ � o -10.0 '� c 75.0 ' � � � � � � � � � � � 9 � O -20.0 `� . . . 3 Under x . . . � � � . � . � Y P erformance I 00.0 a-30.0 i -� 9/OS 9/06 9/07 9/OR 9/09 6/10 -309 -20.0 -10.0 0.0 l0A 20.0 Total Pcriod 5-ZS 25-Median Median-75 75-95 S&P 500 (%) Coont Count Count Count ■ Rockwood Equiry 10 2(20"/0) 2(20"/0) 6(60"/0) 0 f0"/o) f OverPerfomance f UnderPerformance � Mar-200R -p-Jim-2010 • S&P 500 20 0(0"/0) 0(0"/0) 15 (75"/0) 5(25"/0) � • 1 1 1 1 5,00 10.00 0.00 s.no � -s.00 > > o.00 � � -i o.00 - � _ `_ -s.00 - ;, -i s.00 z a" -zo.00 � -� -io.00 � , 0.00 ] O.QO 20.00 30.00 40.00 5.00 10.00 15.00 20.00 25.�0 30.00 Risk (Standard De��ation % ) Risk (Standard Deviation % ) Rcturn Standard Dcviatinn Rcturn Standard Deviation ■ Rockwood Gquity -10.1R 21.01 ■ Rockwood Equiry -1.23 1756 • S&P 500 -9.ft1 21.R5 • SBcP 500 -OJ9 IR9(, - Mcdian -9.2] 21.64 Median -0.10 IR.Op � Tracking Up Down Sharpc Downsidc Error 61arket �1arket .41pha �R Ratio g ��`� Risk Capture Capture RockwoodEquity RJR IOO.RO IOLG7 -0.92 -0.04 -0.4R 0.93 172( S&P 500 0.00 100.00 100.00 0.00 N/A -0.47 1.00 16.84 1 Tracking Up Down Sharpe Downside Error Market Market Alpha �R Ratio Beta Risk Capture Capture Rockwood Equity 720 103.R6 ]05.51 -029 -0.05 -0.14 0.94 13.R0 S&P 500 0.00 100.00 ]00.00 0.00 N/A -0.12 1.00 1;.19 �� "I'rtt: z3 BOGDAHN Peergroups were not fully updated as of the date this report was published. �� GR�UP Peergroups are subject to change and a new report may be issued if necessary. �� C� z @ 'O N N N N � 9 W O- ..- N � N 7 i N C N O � a 9 N �- T N @ �� E t m a v m � � o � d N N N N t� � � N � @ � d � � @ � U � O O `-� C � � 9 � N 3 a� N (d Q' N o a o� o a� � a� y o- a� a Tequesta Public Safety Officers' Pension Fund Europacific Growth (RERGX) June 30, 2010 �•� � � � � .� � � 20.00 90.00 I5.00 4 �� I 0.00 -' 3 �.�� s.00� I zono- � � � I n.00 i o.no = ; _ G C � �. � � -s.nn z o.00 ' -IOAO -]0.00 -. I -I 5.00 ... -20.00 -20.00 � � -30.00 � i � i i i � -40.00 � � � � -25A0 � - 1 Oct-2009 1 2 3 q 5 Oct-200R Oct-2007 OM-2006 Oct-2005 Oct-2004 Quarter To Year Years �'ears Years Years To To To To To Jun-2010 Sep-2009 Sep-2008 Sep-2007 Sep-2006 Sep-2005 ■ Europacific Growth (RERGX) N/A N/A N/A N/A N/A N/A N/A ■ Europacific Growth (RERGX) N/A N/A N/A N/A N/A • Msc[E,afei„d�x -i3.�s ��) -ii.00 i9s> a3� �so� -ia.so is�� -i2.�a �so� -a.zz t��) i3s �FS> • MSCIEAFEindex 3.50 (3� -30.t3 (59) 2538 (79) 19.65 (l8) 2632 (49) Medinn -123C, J39 935 -13.SR -11.13 -3.L5 2.08 Median 0.79 -28.42 2`339 17.16 26.19 1 1. � I 1 1 1 1 1 1 Qnarter Quarter Quarter Quarter Quarter Qnarter Ending Ending Ending Ending Ending Ending Mar-2010 Dec-2009 Sep-2009 Jun-2009 Mar-2009 Deo-2008 Earopacific Growth (RERGX) N/A N/A N/A N/A N/A N/A MSCIEAFEIndex 0.94 (Al) 2.22 (93) 19.52 (IS) 25.A5 (16) -13.R5 (R9) -1990 (50) Intemalional Equity Large-Cap Growth Funds (MF) Median 1 J6 4.00 17.R3 2239 -11.55 -19.90 �� I�}{E 25 � BOGDAHN Peergroups were not fully updated as of the date this report was published. (�` R�UP Peergroups are subject to change and a new report may be issued if necessary. �z Tequesta Public Safety Officers' Pension Fund Rockwood Fixed Income June 30, 2010 ,. � � • : �. � � •� � i s.00 2n.00 »so i b.00 i i s.00 t a.00 i z.so iz.00! � o.00 - ■ i o.00 ZS0 !, � I � L L � � ■ : � RAO 5.00 5 � ■ • �, ■. ?! � - � � 2.50 G.00 �R � � 0.00 �� 4.00 � -2.50 ■ I 2.00 I -5 AO 0.00 i i i i i i -7.50 i i i i 1 Oct-2009 l 2 3 4 5 Ocb200R Oct-2007 Oct-20Ufi Oct-20Ug Oct-2004 Quarter To Year Years Years Years Years To To To To To Jun-2010 Sep-2009 Sep-2008 Sep-2007 Sep-2006 Sep-2005 ■ Rockwood Fixcd Inaomc 2.67 (92) 4,71 �97) 8.45 �94) 6.42 (93) 6.87 (83) ti.59 (85) S 37 (7v) � Rockwood Fixed Income 9.03 (92) 3.55 (36) 5.93 (9) 3.RR (45) N/A � Bnrcap IntcimedialeU.S. Govamment/Credit 297 184) 4.RR (95) S29 (94) G.77 I)3) G97 IR2) fi.fi7 (84) 5.26 183) � Batcap I�tertltedt9tc U.S. GOVe7tli11enUCiedi� l0A (S9) 3.73 (41) 5.43 (28) 354 (85) 1.48 (10 1 0) Mndian 3.40 6.06 ]LLO 8.R1 R.12 7.64 5.95 1 1 � 1 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Qnarter Quarter Ending Ending Ending Ending Ending Ending Mar-2010 Deo-2009 Sep-2009 .Iun-2009 Mar-2009 Dec-2008 Rockwood Fized [ncome 1.74 (83) 0.27 (71) 3.55 (90) 2.11 (74) -0.10 (74) 3Z3 (58) Barcap L�tcrmediate U.S. GovernmenUCredit 1.54 (94) 031 (G7) 3.25 (94) 1.67 (R9) -0.05 (73j 4.R4 (33) US Broad Market Core Fixed Income (SA+CF) Median 2.13 0.58 4.75 3.39 0.48 3.76 26 �� BOGDAHN Peergroups were not fully updated as of the date this report was published. �"' ' Peergroups are subject to change and a new report may be issued if necessary. GR�UP Tequesta Public Safety Officers' Pension Fund Rockwood Fixed Income June 30, 2010 .� ,. � � � ., � � y.o o.o Over P crforrmn cc � 7.0- � Z5.0 � � � �� _ �,i• o s.o �u so.o ■ ■ = � � � �� Y e �s.o � � 3.0 , � : ■„� � 'fl Under � .. � .. �. . ... . ! ° Perfmmance 100.0 I �-� � �-�♦-� ♦ - � ___ _-� �_1 Y I.0 9/OS 9/06 9/07 9/OH 9/09 6/10 �° I.0 3.0 5.0 7.0 9.0 Total Period $_25 25-Median Median-7_5 75-95 BarcapintermediateU.S.Government/Credit(%) Count Count Count Count ■ Rockwood Fixed lncome 10 2(20%) 2(20%) 4(40%) 2(20%) f-OverPerfocrronce fUnderPerfortmnce �}-Mar-200& �}-.Iun-2010 • garcapintermediateU.S.GovernmenUCredit 20 0(0%) 5(25%) 3(IS%) 12 (60"/0) ' ' 1 1 1 1 I Z.00 9.00 � - I 0.00 7.50 � R.00 G.00 � 6.00 �� 4.50 � o e 4.00 3.00 - CC 5 2.00 �-� I .5 0 2.00 4.00 6.00 8.00 10.00 12.00 14.00 3.00 4.50 6.00 7.50 9.00 lOSO Risk (Standard Deviation % ) Risk (Standard Deviation % ) Rcturn Standard Dcviation Rcturn Standard Dcviation ■ Rockwood Fixed Income 6.R7 337 ■ Rockwood Fixed Income 537 3.OR • Barcap [ntem�ediate U.S. GovemmendCredit (.97 3J5 • Barcap Iutermediate U.S. GovemmenUCredit 526 i.41 - Median R.12 414 - Mcdian 5.9� 3.92 � Tracking Up Down Sharpc Downsidc Error Nlarket Market .41pha IR Ratio Aeta Risk Capture Capture RockwoodFixedlncome 2.29 103.16 114.12 -0.05 -0.03 L19 1.00 2.70 Barcap Tntermediate U.S. Govemment/Credit 0.00 100.00 100.00 0.00 N/A 1.40 1.00 1.84 1 Tracking � DOWO Sharpe Downside Error Market Marke[ Alpha �R Ratio Bet Risk Capture Capture Rockwood Fixed locome L80 ]02.44 ]02.64 022 0.07 OJO 098 2.17 E3arcap In[ermediate U.S. Govemmen[/Credrt 0.00 100.00 ]00.00 0.00 N/A 0.74 LDO L59 �^ �I�HP. 2� � � BOGDAHN Peergroups were not fully updated as of the date this report was published. (_` R�UP Peergroups are subject to change and a new report may be issued if necessary. �z Tequesta Public Safety Officers' Pension Fund Total Fund Policy As of June 30, 2010 � � �, �� Effective Date: Apr-2005 S&P 500 Index 60 Barcla s Ca ital lntermediate U.S. Government/Credit 40 za �� BOGDAHN Peergroups were not fully updated as of the date this report was published. � (_` RoUP Peergroups are subject to change and a new report may be issued if necessary. �z Statistics Definitions Statistics Description Return -- Compounded rate of return for tl�e period. Standard Deviatioii -- 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 tl�e absolute rate of return per unit of risk. The higher the vahie, the better the product's historical risk-adjusted performance. Alpha -- A measure of the difference between a portfolio's actual returns and its expccted 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, ar 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 liigl�er correlation of the portfolio's performance to tl�e appropriate Uenchmark. 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 retum series. It is calculated Uy 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 Uy 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 partfolio's performance relative to the risk free return. Up Market Capture -- The ratio of average portfolio return over the benchmark during periods of positive benchmark rehirn. Higher values indicate better product performance. Down Market Capture -- The ratio of average portfolio return over the benchmark during periods of negative benchmark return. Lower values indicate better product performance. Calculation based on monthly periodicity. `� THE. 29 � � .- BOGDAHN Peergroups were not fully updated as of the date this report was published. GR�UP Peergroups are subject to change and a new report may be issued if necessary. Village of Tequesta Public Safety Officers' Pension Fund Compliance Checklist as of June 30, 2010 . . . . . 1. The Total Plan return equaled or exceeded the 8% actuarial earnings assumption over the trailing three and five year periods. ✓ 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 4. Total foreign securities were less than 15% of the total plan assets at cost. ✓ . . . . 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°/a of the total plan assets at market. ✓ -. . . . . 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 securities are rated investment grade or higher. ✓ . .•• . • . • - e � .'. , . � . . � . . � . 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 down-market capture ratio less than the index. ✓ ✓ � Ttt�. 30 �T� BOGDAHN Peergroups were not fully updated as of the date this report was published. �� T � Peergroups are subject to change and a new report may be issued if necessary. �� No Text No Text No Text z ]i e r�� '. 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