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Returns have not been confirmed. !�` R�UP Peergroups subject to change. �1 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 -,z.3� i � MSCI EAFE •i3.�/ Domestically, investors had to assess the potential impact of MSCI Emerg Mkts -s.si financial reform, stubbornly stow employment growth and a burgeoning Federal deficit. Globally, investors had to consider S8P500 -t�ai the potential contagion of sovereign credit issues in Europe Russe113000 -t�.si questionable global growth and evolving Chinese currency Russe111000 •�t.ai Russell MidCap •s.si policy. If this collection of macro issues wasn't enough to give R„SSeu Z000 �.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 3.5% challenges is certainly understandable, but if we collectively BarclaysUSGovt azi pause to wait and see "what may happen", the unfortunate Ba`�iays""BS 2.'�° Barclays Corp IG s.a / 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 -�s.o�ia -�o.oio -s.o�ia o.o°ro 5.o�ro �o.o�ro term. ■ Domestic and international equity benchmarks suffered their OneYear Performance lar est ullback in more than a ear durin the 2"d uarter. ----------- -----------------� g p y g q MSCIACWxUS ,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 MSCIEmergMkts 23.5� � cascading events that resulted in a general reassessment of market risk tolerance after more than a year of consistent sa�P soo +4.4� Russel I 3000 � 5.� i gains. In contrast to equity markets, fixed income benchmarks Russe111000 ,5.2� posted impressive quarterly performance as a"flight to quality" RussellMidCap 25.,� , drove investors to U.S. Treasury securities, which resulted in R�SSQn2000 z,.s� � lower yields and higher prices. Barclays US Agg gs i Barclays US Govt s.s / ■ Despite the 2�d quarter's negative equity perFormance, one- Ba��iaySMBS �.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.,� i equity gains. Not to be outdone, the Barclays Aggregate Bond o.o�io s.o�io �o.o�ia �s.o�io zo.o�io 2s.o�io so.o�ro index return of 9.5% was also impressive. �� rHF Source: Barclays Capital, MSCI Capital Markets, Russell Investments 2 BQGDAHN Preliminary Report. Retums have not been confirmed. � GRQUP 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 3000Value -tt.ti cap stocks (Russell 2000). The chart illustrates that the 2"d 30001ndex -tt.3/ 3000Growth -t�.s/ quarter's style-based performance bands were much more narrow than those realized over the last several quarters. In 1000Value •��.�i fact, the narrow 140 basis point differential between small cap 10001ndex -��.ai value and growth returns represented the quarter's widest 1000Growth -��.�/ style-based range. This quarter's narrower performance span was not surprising given the widespread losses realized by MidCapValue -s.e/ the most heavily-weighted economic sectors of the various MidCapindex -s.ei capitalization-based sty�e benchmarks. nn�acapc�oWen -,0.2� 2000Value -�o.ei 20001ndex •s.s/ 2000 Growth -s.z:/ -15.0% -10.0% -5.0% 0.0% 5.0% OneYear PerFormance ■ The range of style-based benchmark performance is much 3000Value ,�.s� broader over the one-year period and favors value over 30001ndex ,s.�� growth across the capitalization spectrum. The value-based 3000Growth 73.9% benchmarks' outperformance over the one-year period was largely driven by the strong financial sector performance 1000Value ,s.9� during the 3�d quarter of 2009 and the 1St quarter of 2010. �000i�aeX ,5�� While the one-year results are certainly impressive in an 1000Growth ,3.6� absolute sense, the inclusion of the 2�d quarter's negative MidCap Value 2e.s i performance coupled with the "roll-off' of the 2�d quarter of MidCapindex 25.,� 2009's strong performance (Russell 1000: +16.5%) resulted in MidCapGrowth 2,.3� a significant downshift in the reported one-year performance from last quarter. z000vaiue 25.,� 2000 Index 2�.s / 2000 Growth � a.o i 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% r � TFit Source: Russell Investments g � ,, BOGDAHN Preliminary Report. Returns have not been confirmed. �ROUP Peergroups subject to change. The Market Environment GICS Sector Performance &(Quarter-End Sector Weight) Period Ended: June 30, 2010 ■QrR Russe111000 O 1-Year ■ Large cap stock performance was negative across the various Global Industry Classification Standard (GICS) sectors for the Energy(10.3° " 3.5� quarter. There were few places for portfolios to shift or hide Materials(3.8% �'S.2' with seven of the ten sectors of the Russell 1000 index down ,6.5r more than 10°/a for the quarter. In a reversal of last quarter's Industrials(10.9° �12�2' 26.6% sector results, telecommunication services (-5.0%) and utilities ConsumerDisc(70.7%) -��.o/ 29.3 % (-3.8%) sectors were the strongest relative performing sectors ConsumerStaples(10.3% $� of the benchmark during the 2"d quarter. Such weak results 13.3% on a broad sector level means that individual issue selections HealthCare(12.2° - "� 4 ' 103 and uninvested cash positions will likely play a dominate roll in Financials(16.7° � 775 IIICIIVICIUBI IIIV@Stlll@Ilt CTlallag@I' C@SUItS. InfoTechnology(18.4%) -tz.zi 76!3 % ■ For the trailing one-year period, each of the ten GICS sectors TQ�Q�omServices(2.9% ' S8� in the Russell 1000 index posted positive performance. In Utilities(3.8° 3�$' 6.3% contrast to the quarterly results, seven of the ten sectors of the Russell 1000 returned in excess of 10% for the period. -so.o^io -zo.o°io -�o.o�io o.o�io �o.o�io 2o.o�io so.o�ro ao.o�ro ■°rR Russe112000 ■ Small cap stock performance was also negative across each �1-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% -t3•a' 21.9% more mild than those realized in the large cap index, it was Materials(4.8 -"�" 38. ,� 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 ' Consumer Disc (13.8% -�3.6% the quarter's individual manager results, sector positioning to 34.0� industrials ( consumer staples (-6.4%) and UtllltleS ConsumerStaples(3.3°/a �'°� 2�3i (-3.2%) will also likely play a role. Heaitnca�e��s.s°io> •+o.sr 13.2 % ■ Despite the 2"d quarter's small cap selloff, the one-year results Financials(21.4% -9�5' Z�2� for the Russell 2000 index GICS sectors are impressive. Each InfoTechnology(17.9° $�" z,.or sector of the Russell 2000 was positive over the period and six of ten sectors returned in excess of 20%. Te1eCOmserv��e5��.o^ -9 '�� 14 � utu�ties (s.2^�o� � 13.71 -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% r � TFiF. Source: Thompson Financial q � BOGDAHN Preliminary Report. Returns have not been confirmed. (_`R�UP Peergroups subject to change. �r The Market Environment Quality Rankings* Breakdown by Weight and Quarterly Performance Period Ended: June 30, 2010 ■ Within the Russell 1000 index, the performance of each of the ��' �' rated quality segments was spread over a 770 basis point A+ � 14.6% -9.9% -1.4% range during the quarter. In general, the higher quality "A+" A 8.7% -8.3% -0.7% (-9.9%) and "A" (-8.3%) rated companies posted the quarter's A- 12.1° -�2.s°i -1.5% strongest relative quality performance. The index's "C" rated B+ 2�.s°i -12.9 -3.6 companies, which represented only 2.1 % of the index, posted B 18.4% -9.8% -1.8% the quarter's weakest performance with a return of -16.0%. B _ �.��i -11.8% -o.s°io C 2.1 % -16.0% -0.3% D 0.0% 0.0% 0.0% N!A 0.0% -4.5% 0.0% Not Rated 9.6% -12.6% -1.3% i�� i �� ■ With nearly 30% of the small cap Russell 2000 index being ,,, !. classified as "not rated", drawing sweeping conclusions from '� the quality data associated with the small cap index can often A+ 0.4% -2.1% o.o°io be misleading. With respect to this caveat, it appears that A 2.5% -6.2% -o.2�io much like the large cap index quality breakdown, investors bid A- 5.3% -8.4% -0.4% up the "higher quality" companies in the index, with the "A+" B+ 12.0% -6.5% -0.8% companies returning the quarter's strongest relative quality B i�.2�i -9.1% -�.s�ro performance (-2.1 %). The range of results for the Russell B- 2o.9°i -9.5 -1.9 2000's quality rated companies was a broad 2,210 basis C 12.6 -�s.i°ro -2.o°ro points. � o.2°io -2a.2°ia o.o°io N/A 0.7% -15.0% -0.1 % Not Rated 28.1% -10.2% -2.9% �ii ii i�. Quality Rankings Table � Highest High Above Average Average Below Average Lower Lowest In Reorganization *Standard and Poor's rankings are generated by a computerized system and are based on per-share eamings and dividend records of the most recent 10 years. -October 2005 report �� T}1F Source: Thompson Financial 5 � �QGDAH� iv Preliminary Report. Returns have not been confirmed. �`R�UP Peergroups subject to change. �'1 The Market Environment International and Regional Market Index Performance (# Countries) Period Ended: Ju 30, 2 0 1 0 ■QTR(USD) QuarterPerformance o QTR (Local) ■ Much like the domestic indices, international markets also suffered during the quarter due to concerns over global credit ACWorldxUS(4d) 123/ _y.3/ and sustainable growth. The "flighY' to the safety of the U.S. WoR�oXus�2s� -13.4 Dollar (USD) that typically occurs during periods of global � EAFE (22) -� 3.a i unrest is clearly evident in the USD versus local currency _, international index results. Relative to the USD, 39 of the 44 Europe(16) -14 countries that make up the MSCI-ACWxUS index saw their -9 � 5 ' o Pacific (5) -� �. � currencies depreciate by an average of -6.0 /o. In contrast, _ Japan was one of the five ACWxUS countries that managed EmergingMkt(21) �� to gain relative to the USD during the quarter with an -5.5' -15.3 % appreciation of +4.8% EM Europe (5) 9 0 � EM Asia (8) -5 � ■ Weak performance in developed markets (-13.8%) was -Z �" 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.oio -�s.oio -�o.o°ro -s.o°ro o.o°ro 5.o°ro 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 g ry 01-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 Worldx US (44) �24� quarter due to stronger relative results in the emerging Asian WORLDxUS(23) 7 � 5 ' countries as well as some sporadic positive individual country 64 � 10 � 3 � j results. Over the last year, the emerging market index shows EAFE(22) 104 a perFormance advantage of more than 3x the developing Europe (16) 6.3' market index return. 1 � 3 ' Pacific (5) s.s i -o.a i ■ It is interesting to note that MSCI reclassified Israel as a EmergingMkt(21) 23si developed market country as part of its semi-annual index 20., o EM Europe (5) 27 � 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 EM Asia (8) 23.0' the first country in the developed index that does not fall into 199 EM Latin Amer (5) 25'� i the classic definition of (E)urope, (A)ustralasia or (F)ar (E)ast. ,8. -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% `� THF Source: MSCI Capital Markets g ( BOGDAHN Preliminary Report. Returns have not been confirmed. !'`R�UP Peergroups subject to change. �� The Market Environment U.S. Dollar International Index Attribution & Country Detail Period Ended: June 30, 2010 a , � 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% �3,g% Switzerfand 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 9.0% -9.6% � p.go�o Italy 2.8 / 2.0 / -21.0 / -9.2 / 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% o.o / 29.4 /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% �1tI�It10S 5.5% -12.5% -4.0% Belgium 0.9% 0.7% -12.3% 13.6% � � � , 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% PoRugal 0.3% 0.2% -16.7% -9.8 % NewZealand 0.1% 0.1% -10.5% 8.6°/ ii i � , � ,' - Canada 7.9% -10.3°/ 18.6% �- Energy 10.3% -16.7% 0.3% China 4.a% -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 32% -7.6°/ 32.3% Taiwan 2.5°/ -9.3% 16.1% Consumer Discretionary 8.9% -8.6% 15.2% India 1.9% -22% 32.0% Consumer Staples 9.1 % -6.3% 22.3% South Africa 1.7% -9.5 % 18.4% Health Care 6.4°/a -9.4% 12.0% Russia 1.5% - 15.4°/ 26.9% Mexico 1.0% -9.0% 31.7% Financials 25.3% -14.7% �•2% Malaysia 0.7% 0.2 % 33.9% Information Technology 6.9°/a -13.3% 14.6% Indonesia o.6% 4.4% 66.9% TelecommunicationServices 6.1% -7.0% 77% Turkey o.4/0 -4.0/ 44.3/0 Chile 0.4% 2.9 % 25.8% UYI�IYIeS 4.$% -11.0% -�.5% Thailand 0.4% -1.7% 35.1% � � �'� �'' Poland 0.3% -21.6% 24.0% Colombia 0.2% 3.6% 53.6% Peru 0.1% 4.2% 52.2% E9Ypt 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•, s • �� THt. Source: MSCI Capital Markets, 8 Franklin/Templeton � � BQGDAHN Preliminary Report. Returns have not been confirmed. �R�UP Peergroups subject to change. 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 �i°` °•e' credit worries and the looming possibility of a"double-dip" � 3�� recession overshadowed the corporate spread compression A T; 3.�� that dominated fixed income results for most of the last year. BBB Z.a, The resulting "flight to quality" drove rates lower across the � BBB - Treasury yield curve. This general rate decline enhanced the co�rt 4.3� performance of long-dated and high-quality bond issues. The markeYs changing risk aversion was evident in the high yield M°rt ;� °;�,-` Z.9� index (<BBB) return of -0.1%. This performance marked the G/M/C =BroadMarket(Government+Mortgage*Corporate) first quarter in more than a year that high yield was not the �-3yrG/M/C ,.6� best performing segment of the fixed income market. �-sy�crnnic z.+� 1-10yr G/M/C 2.e i 10+yrG/M/C ssi -2.0°/u 0.0°/u 2.0% 4.0°/a 6.0% 8.0°/a 10.0°/u OneYear Performance ■ Despite questions surrounding the sustainability of the global AAA t 1.1 % economic recovery that dominated the quarter's results, the one-year performance of the various bond market indices still A°' '2." shows the effects of sizable credit compression in corporate A ,5.°' issues. The Government bond index, which did not benefit BBB 79�6% from the credit compression in corporate bonds, posted a <BSe � 2�.5� respectable +6.5% over the last year. co�c 6.5, Mort zs i I 1-3yrG/M/C s.3/ ' 1-Syr G/M/C s.a / 1-10yr G/M/C e.t /' 10+yr G/M/C 16.7 % 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% �� TFi t: Source: Merrill Lynch Index System 8 � BOGDAHN Preliminary Report. Retums have not been confirmed. GR�UP Peergroups subject to change. The Market Environment Market Rate & Yield Curve Comparison P e ri od En ded: Ju 30, 2 0 1 0 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 ��=FedFU�ds Rate -TEDSpread -3-MonthLibor 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.so as well as weaker than expected domestic economic s.00 3 '`° ; ��..�--�,_ * ,� ,��.,�„, � �, � readings. These market events are easily visualized in the 2.5o trailing market rates chart where domestic inflation expectations receded (10yr TIPs), credit spreads widened Z.00 :. (BAA/10yr Spread) and investors fled to the quality of i.5o � �a,,. Treasuries that drove ields lower 10 r Treasu �� *'�� 1§ ��'" Y� � Y rY)• �.00 0.50 - . _. . �. 0.00 <,� .._.�,� F; _; , Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 TreasuryYield Curve 6.00 ■ After trading in a relatively narrow range for much of the last —�s�so�zoos —a-,tisvzoos o 3/31/2010 —o—s�so�zo,o year, the yield curve showed a marked reduction in rates s.00 across the maturity spectrum during the quarter. The �� benchmark 10-Year Treasury bond closed the quarter with a yield of 2.98%, which was down 87 basis points from the a.00 3.84% yield on 3/31/10. The lower curve reflects the market's 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 �� THF Source: Mortgage-X.com , US Department of Treasury & St. Louis Fed 9 BOGDAHN Preliminary Report. Returns have not been confirmed. � (-' R�UP Peergroups subject to change. �T Tequesta General Employees' Retirement Plan June 30, 2010 � � : � i � � � � � March 31, 2010 : 51,448,749 June 30, 2010 :$1,403,327 i` — `- ` ^�"`� � � �, . 0 1 •-.� �~i� �� , �.� ;. `., � � � f , ,�: �_ �"*, � � � � � � � �`� �� ,� � I . . 3 . . , . ,, �. . . �_� �.: . Segments Market Value Allocation Segments Market Value Allocation �$) �%) �$) �%) ■ Domestic Equity 734,052 50.7 ■ Domestic Equity 662,356 472 � Intemational Equiry 135,275 9.3 0 International Equity 128,037 9.1 ■ Fixed Income 537,678 37.1 ■ Fixed Income 575,509 41.0 ■ Cash Equivalent 41,743 2.9 ■ Cash Equivalent 37,426 2.7 r � T'►i E, �o �{� BOGDAHN Preliminary Report. Retums have not been confirmed. (.`RDUP Peergroups subject to change. �T Tequesta General Employees' Retirement Plan June 30, 2010 i i� �• � I I i �� .�� 1 March 31, 2010 :$1,448,749 June 30, 2010 :$1,403,327 Market Value Allocation Market Value Allocation ��) �%) �$) �%) ■ Dana Balanced Portfolio 1,305,253 901 ■ Dana Balanced Portfolio 1,273,395 90.7 � Dana International Equity 136,618 9.4 0 Dana International Equity 129,831 9.3 ■ R&D 6,878 0.5 ■ R&D 100 - �� rt�F_ 11 � BOGDAHN Preliminary Report. Retums have not been confirmed. !'`RjOUP Peergroups subject to change. �� Tequesta General Employees' Retirement Plan Asset Allocation vs. Target Allocation As of June 30, 2010 June 30, 2010 Cash Equivalent 2.7% Domestic Equity -2.8% International Equity -0.9% Domestic Fixed Income 1.0% T -- ----- -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 37,426 2.7 - Domestic Equity 662,356 47.2 50.0 International Equity 128,037 9.1 10.0 Domestic Fixed Income 575,509 41.0 40.0 Total Fund 1,403,327 100.0 100.0 l � THE 12 l(� BOGDAHN Preliminary Report. Returns have not been confirmed. GR�UP Peergroups subject to change. Tequesta General Employees' Retirement Plan Asset Allocation History As of June 30, 2010 Asset Allocation History by Portfolio II' i II' 1� II' I I I I � � � � � � � � Dana Balanced Portfolio l,111,782 99.11 1,157,325 91.47 1,247,761 91.83 1,305,253 90.10 1,273,395 90.74 Dana International Equity - - 95,998 7.59 100,383 7.39 136,618 9.43 129,831 9.25 R&D 9,981 0.89 11,872 a.94 10,618 OJ8 6,878 0.47 100 0.01 Total Fund 1,121,764 100.00 1,265,195 100.00 1,358,762 100.00 1,448,749 100.00 1,403,327 100.00 Asset Allocation History by Segment 100.0 � r .. .. �:� � � � �� .:;•. . . . ,. �a�,�; .. . � • I � ,..,,�� 80.0- .. , _ _ _ „ . ,-_,. � -.: � , ; � �., , , . 3 _ ., _ , . � , �. . ., � , a . �� ;�. ._.: �. . . N �. . _�. ., ...� . . _.�, , . . . .. . . �� M s 0 6�.�� . �, C . � . � . � . . � . O i � . . ,�,,. _ .0 ,.. , � . . : _�, ^- ... U 4�.�� _ � . . ' . . � '=: O � � � � � . . .�. �, . t . „ . . , .. . , .. . ,., ... _ . .. .,, . ... , , ., . , � - 2�.� Q.� 8/07 11/07 2/08 5/08 8/08 11/08 2/09 5/09 8/09 11/09 2/10 6/10 i. Domestic Equity � Intemational Equity � Fixed Income � Cash Equivalent ��"� T'tiE 13 � . BOGDAHN Preliminary RepoR. Returns have not been confirmed. !�` R�UP Peergroups subject to change. Vr 14 Preliminary Report. Returns have not been confirmed. Peergroups subject to change. Tequesta General Employees' Retirement Plan Financial Reconciliation As of June 30, 2010 Financial Reconciliation Quarter to Date �� .� . , � � � � � � �• � . �� • �•, . � i I � I f I Dana Balanced Portfolio 1,305,253 -8,743 63,618 -14,506 - -8,590 10,509 -74,146 1,273,395 Dana International Equity 136,618 15,234 - - -1,991 -254 2,170 -21,947 129,831 R&D Account 6,878 -6,491 - - - -286 - - 100 Total Fund 1,448,749 - 63,618 -14,506 -1,991 -9,130 12,679 -96,092 1,403,327 Financial Reconciliation Fiscal Year to Date .� . � � � � � � � �• � � �� •� � i ii� � i i i Dana Balanced Portfolio 1,157,325 -66,743 184,939 -14,506 - -11,Sp0 27,672 -3,792 1,273,395 Dana International Equity 95,998 49,234 - - -1,991 -593 2,905 -15,722 129,831 R&D Account 11,872 17,509 - - -3,569 -25,711 - - 100 Total Fund 1,265,195 - 184,939 -14,506 -5,560 -37,804 30,577 -19,514 1,403,327 �� rHE. 15 � : BOGDAHN Preliminary Report. Returns have not been confirmed. /".`R�UP Peergroups subject to change. �i Tequesta General Employees' Retirement Plan Comparative Performance Trailing Returns As of June 30, 2010 � ii� •� � � �i i •� � �. • Total Fund (Net) -5.81 (38) 0.63 (77) 9.50 (95) -2.50 (54) 1.04 (74) 3.06 (3fi) 3.29 N/A ll/Ol/2000 f �;(��I l�lthel f'C� ICY' -r1 tt� (.19} (� vi, tf,ll) � � �) !h�) _',_! � ��,�, .i.} � ,� 1 > f _ `v rl Difference 0.20 -0.23 -2.01 0.65 0.05 1.23 0.71 All Public Plans-Total Fund Median -6.09 0.98 12.11 -2.39 1.56 2J0 N/A Total Fund (Gross) -5.68 1.05 10.08 -2.25 1.24 3.28 3.47 11/Ol/2000 � n(_il F ilntl Pp�IC�� -!,.(11 fl_5fi ? i? I i.l � (1 C}q ��:1 _�� Difference 0.33 0.19 -1.43 0.90 0.25 1.45 0.89 Dana Core Equity -11.00 (33) -0.64 (39) 12.56 (69) -9J8 (69) -3.56 (90) N/A -1.01 (64) 11/Ol/2005 S��I' �111� -I1 =l3 j�<!) -i (1� (�4j i4-�� 1=1!l -`) �I !r0) -3.0'_ t?'1 -(1?9 (7X) _� ?� + tii Difference 0.43 0.38 -1.87 0.03 -0.54 N/A 0.24 US Core/Large Cap Equity (SA+CF) Median -ll.41 -0.96 13.85 -9.17 -2.53 0.00 -0.61 Daaa Int'1 Portfolio -14.23 (89) -9.76 (64) 8.79 (52) N!A N/A N/A 8.79 (52) 07/Ol/2009 MSC I i:;1}I: li�cicx -13.-; ��01 -I L(�0 (`?; h.;� ( �y) .�'_,y-4 l� _<i.�� i7,i l., � (�;t {� ,; (-`�; Difference -0.48 1.24 2.42 N/A N/A N/A 2.42 International Core Equity (SA+CF) Median -12.61 -8.8o 8.91 -12.41 -3.19 2.75 8.91 Dana Fixed Income 2.28 (84) 4.71 (84) 7.78 (83) 7.02 (76) 6.66 (7'7) N/A 591 (83) 11/Ol/2005 R�irc<��Int:ri�iedi<�t�C�S.Government/Credit '9"' t?�1 -��ti t�i71 ��-_9 (7�� (,.�?7 17�� 6�,� f7'1 >.'6 tK��) i.59 iK�l Difference -0.69 -0.17 -0.51 0.05 -0.01 N/A 0.02 US Intermediate Fixed Income (SA+CF) Median 2.90 536 9.21 7.68 7.24 5.82 6.43 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Dana's inception date is 10-13-2005. Dana Core Equity contains 'I'IiF. international prior to 7/1/2009. • BOGDAHN 16 � Prelimina ry Report. Retums have not been confirmed. � !"' R � U P Peergroups subject to change. �� Tequesta General Employees' Retirement Plan Comparative Performance Fiscal Year Returns As of June 30, 2010 � ii� � ii; � ii � ii� � ii � ii� � ii � � � � � � � i i •� ii� �� ii� •� ii •� ii� �� ii •� ii- Total Fund (Net) 0.63 (77) 1.64 (47) -10.34 (S) ll.64 (43) 10.35 (23) 1].09 (67) 2.08 (100) Tt>Ral F��t��l �'oiict� O.�tb f(�Gj 0.�� r(��) -�1�'.��t� (�:�) I�.(�� {9U) �1.�5 fi��} r.�w"- E�J7'� �,O� (1(l0) Difference -0.23 1.16 2.12 -0.38 2.47 2.72 0.05 All Public Plans-Total Fund Median 0.98 1.36 -13.67 14.43 8J4 12.54 11.19 Total Fund (Gross) 1.05 1.76 -1010 11.64 10.67 11.09 2.70 Total 1=un�l Pulicv 1).S(i 0.4;� -12.46 12.0�' �.5� �+. �7 �.0; Difference 0.19 1.28 2.36 -0.38 2.79 2.72 0.67 Dana Core Equity -0.64 (39) -8.19 (75) -19.68 (35) 16.70 (49) N/A N/A N/A S��;P �O(i -1.02 I;-11 -f�.41 (t�(1) -Zl.i1� 16�) lti.<4-� i{�) 1(1.�9 1�?) l�.?j {till� 1 i*; 1�`)} Difference 0.38 -1.28 230 0.26 N/A N/A N/A US Core/Large Cap Equity (SA+CF) Median -0.96 -6.48 -21.14 16.61 10.81 14.34 14.20 Dana Int'l Portfolio -9.76 (64) N/A N/A N/A N/A N/A N/A �1`�( I I'..�I-1: lnti��. -1 1.U11 (��i �.�il) (�;�) -�(1.1 i (-�-�) �i.iY (??� t+).(i� (i�) �(�.3� (67} �2.?� 1�7t Difference 1.24 N/A N/A N/A N/A N/A N/A lnternational Core Equity (SA+CF) Median -8.80 31 l -30.45 27A1 19.76 27.70 21.98 Dana Fixed Income 4.71 (84) 9.24 (83) 4.47 (29) SZ5 (74) N/A N/A N/A F�,�ria�� Intcr�n�di<o:c [',S. Gov,aiiment ('r..�li! -1 4'� (�"i !i? {ll (;?� ; l ; (�') �.d; {>rij ;.�-4 19;) I.k'w ��>�) ` r,(; ir,;;) Difference -0.17 -0.77 1.34 -0.18 N/A N/A N/A US Intermediate Fixed Income (SA+CF) Median 5.36 ] 1.43 3.22 5.46 3.90 2.09 2.87 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Dana's inception date is 10-13-2005. Dana Care Equity contains ^ • international prior to 7/1/2009. /_ ` RO�TAu1�T 17 �� , L lJ 111V Preliminary Report. Returns have not been confirmed. !'` R�UP Peergroups subject to change. `1 Tequesta General Employees' Retirement Plan Total Fund (Gross) June 30, 2010 � �� • � � � � � . zs.00 zs.00 zo.on zo.00 15.00 � 15.00 ■ 10.00 10.00 ■ 5.00 ° 5.00 ° 0.00 , a e E E z` � a o.00 � � -5 ��o � � '� -t o.00 -s.00 � • -i s.00 -i -i o.on I -zo.00-� -15.00 � � � � � � -25.00 � � � � 1 Oc42009 1 2 3 4 5 Oct-2008 Oct-2007 Oct-2006 Ocb200$ Oc62004 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) -5.64 (33) I.OS (45) lO.OR (92) -1.27 (33) -2.25 (37) 1.24 (70) 3.28 (14) ■ Total Fund (Gross) 1.76 (54) -10.10 (12) I 1.64 (93) 10.67 (9) 11.09 (67) • Total Fu�d Policy -6Al (49) 0.86 (60) 1 I.51 (63) -2.14 (58) -3.15 (65) 0.99 (74) 1.83 (77) • Total Fund Policy 0.48 (67) -12.46 (,40) 12.02 (90) 7.88 (59) 837 (98) Median -6.09 0.98 12.11 -L62 -239 I.55 2.73 Median 191 -13.33 ]4.09 R.10 11.87 1 1 ' 1 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 Drc-2008 Total Fund (Gross) 3.71 (63) 3.30 (62) 8.94 (90) 5.86 (92) 3.84 (16) -8Z3 (6) Total Fund Policy 3.48 (78) 3.70 (36) L0.56 (6� IOJ3 (57) -6.51 (C9) -11.73 (36) All Public Plans-Total Fund Median 3.92 3.41 I 1.46 ] 0.60 -5.77 -12.R1 �� 1'H F �s � BOGDAHN Preliminary Report. Returns have not been confirmed. (-` R�UP Peergroups subject to change. �1 Tequesta General Employees' Retirement Plan Total Fund (Gross) June 30, 2010 � �• �• � � , �. , zo.o Over � � Pcrformance � � � 12.0 �■ � 25.0 ■ � � � C ■ 0 4.0 - � � � � � • �`c 50.0 � ■ • � � • ° -4.0 a • � � `� a 75A � . . . o -12A � � � � � . � � � • �. Under C . � � :°. Performance ]OOA �--��-�--�-� �-20.0 i � 9/OS 9/Ofi 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) 20 5(25%) R(40%) 2( IQ%) 5(25 %) fOverPerfum�ance -(,YSep-2005 $Jun-2010 • TotalFundPolicy 20 0(0%) 2(10%) 6(30%) 12 (60"/0) �. � � � � 20.00 17.50 15.00 14.00 io.no �aso o s.no e = o.00 � �.00 � � - sso � -5.00 � - I 0.00 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 Devia[ion Return Standard Deviation ■ Total Fttnd (Gross) -2.25 ]035 ■ Total Fund (Gross) 3.2R 8.61 � Total Fund Policy -3.15 12.61 • Total Fund Policy 1,R3 10.24 - Mcdian -239 1299 - Median 2.73 10.49 I Tracking M rket Market A►pha IR Sharpe Be Dowosidc Error Capture Capture Ratio Risk Total Fund (Gross) 3.51 R5.93 R4.16 0.1 R 0.19 -0.31 O.RO R33 TotalFimdPolicy 0.00 ]00.00 ]00.00 0.00 N/A -031 1.00 10.07 Tracking Up Down Sharpe Downside Error Market Market Alpha �R Ratio Be1a Risk Capture Capture Total Fund (Gross) 334 91.07 75.78 L73 038 0.11 O.AO 6.53 Total Fund Policy 0.00 100A0 ] 00.00 0.00 N/A -0.03 1.00 7.88 �� THF 19 � �oGDAHN Preliminary Report. Returns have not been confirmed. (_`R�UP Peergroups subject to change. �T Tequesta General Employees' Retirement Plan Dana Core Equity June 30, 2010 �. � � � ,� � 25.00 30.00 20.00 20.00 I 5.00 - � ■ 10.00 i 10.00 � � 0.00 5.00 � ° � c 4. ` o ° � 0.00 °' C -10.00-� I -5.00 -20.00 ■ -10.00 �� -3 0.00 - I 5.00 -20.00 � � � i i i -40.00 � � � � 1 Oct-2009 1 2 3 q q Oct-200R Oct-2007 Oct-2UOfi Oct-21105 Oct-2004 Quarter To Year Years Years Years Years To To To To To .lun-2010 Sep-2009 Sep-200S Sep-2007 Sep-2006 Sep-2005 ■ Dana Corc Equiry -I L00 (33) -0.64 (39) 12.56 (69) -932 (7R) -9J8 (69) 3.56 (90) N/A � Dana Core Equity -R. L9 (75) -19.68 (35) 16.70 (49) N/A N/A • s&esoo -ii.a3 �sa) -i.oz (sa� ia.a3 (ai� -s.n �ho� -v.si ��o> -s.oz p2� -0.�9 ��&� � S&P500 -6.91 (60) -21.9R (65) 16.44 (58) 10.79 (52) 1225 (80) Mediau -11.41 -09fi 13.R5 -790 -9.17 -2.53 0.00 Median -6.48 -21.14 16.61 10.81 14.34 1 1 � 1 1 1 1 1 1 Quarter Qaarter Qnarter Quarter Quarter Quarter Eodiog Ending Ending Ending Ending Ending Mar-2010 Dec-2009 Sep-2009 .lun-2009 Mar-2009 Dec-2008 Daua Core Equity 5.77 (30) 5.55 (69) 13.29 (84) 1419 (71) -8.59 (29) -22.36 (68) S&P 500 5.39 (52) 6_04 (49) 15.(1 (3R) 15.93 (42) -11.01 (69) -21.94 (60) US Core/Large Cap Equity (SA+CF) Median 5.40 6.01 ISZS 15.57 -10.44 -21.6A �� T}iE Zo � ; BOGDAHN Preliminary Report. Returns have not been confirmed. GR�UP Peergroups subject to change. Tequesta General Employees' Retirement Plan Dana Core Equity June 30, 2010 ., � ,. , , �. 4.0 2.0 Over 0. � P erfomran ce � 'S.0 -3.0 c > - e SOA � � � � P.' � -8.0 � c 75.0 • � • � � • � � � � � � • • � � � • � * � -13.0 � . . . � Under C . . . .. . � I ° 100.0 � P erfirm�nce p-L8.0 9/OS 9/06 9/07 9/08 9/09 6/10 -IR.O -13.0 -8.0 -3A 2.0 4.0 Total Period 5-25 25-Median Median-75 75-95 S&P 500 (%) Count Count Count Count ■ Dana Core Equity 7 0(0%) 3(43"/0) 4(57%) 0(0%) � Over Perfurcmnce f Under Pertorrrrance � Deo-2008 �]un-2010 • S&P 500 20 0(0%) 0(0%) ] 5(75%) 5(25%) '• 1 1 �• 1 5.00 10.00 0.00 5.00 -5.00 e o 0'00 � -] 0.00 � -I5.00 � -5.00 C a�' -20.00 -10.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 5.00 10.00 I5.00 20.00 25.00 30.00 Risk (Standard De��ation %) Risk (Standard Deviation % ) Return Standard Deviation Return Standard Deviation ■ Dana Core Equiry -9.7R 20.67 ■ Dana Core Eqnity N/A N/A • S&P 500 -9.R1 21.85 • S&P 500 -0.79 1 RA6 - Median -9.17 21.64 - Median 0.00 17A9 1 Tracking Up Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Dana Core Equity 3.54 96.69 97.66 -035 -0.01 -0.4R 096 1 C.80 S&P 500 0.00 100.00 100.00 0.00 N/A -0.47 1.00 16.54 1 Tracking Up Down Sharpe Dowoside Error Market Market Alpha �R Ratio Beta Risk Capture Capture Dana Corc Equity N/A N/A N/A N/A N/A N/A N/A N/A S&P 500 0.00 100.00 J00.00 0.00 N/A -0.12 1.00 13.19 �*� Trir 21 � BOGDAHN Preliminary Report. Returns have not been confirmed. (-` RQUP Peergroups subject to change. �T :,��; 22 Preliminary Report. Returns have not been confirmed. Peergroups subject to change. Tequesta General Employees' Retirement Plan Dana International Equity June 30, 2010 �. � � � � � 20.00 50.00 I 5.00 4�.�� 10.00 -�� 5.00 � 20.00 � I I 0.00 � 10.00 o i e i c ' I �' � o.on � -s.00 -� o.00 ■ -i o.00 • s -is.00 � -zo.00 -20.00 - -30.00 � -25.00 � � � i � i -40.00 � � � � 1 Oct-2009 1 2 3 4 5 Oct-20UR 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 ■ Da❑a Intcmational Equity -1423 (R9) -9J6 (64) x.79 �52) N/A N/A N/A N/A ■ Dana Intemational Equity N/A N/A N/A N/A N/A � MSCI EAFE Index -13J5 (RO) -I L00 (R2) (37 179) -1430 (54) -1294 (58) �22 (73) L35 173) � MSCI EAFH In(lex 3.50 (45� -30.13 (44) 25.38 (72� 19.65 (54) 2632 (67� Mcdian -12.61 -R.RO R91 -14.02 -12.41 -3.19 2.75 Median 3.11 -30.45 27.01 19J6 27J0 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 Jun-2009 Mar-2009 Dec-2008 Dana In[ernational Equity 0.39 (84) 4.50 (15) 20.56 (22) N/A N/A N/A MSCI EAFE Index 0.94 (66) 2.22 (73) 19.52 (36) 25.R5 (35) -13.R5 (70) -19.90 (43) Intemalional Core Equity (SA+CF) Median 134 3.14 1911 23.R3 -13A5 -20.23 �� THE 23 � _ : : BOGDAHN Preliminary Report. Returns have not been confirmed. �TR�UP Peergroups subject to change. Tequesta General Employees' Retirement Plan Dana's Fixed Portfolio June 30, 2010 �• � � � �6so »so i s.00 i s.00 13.50 12.50 I 2.00 10.00 ]OSO ■ 7.5 0 9.00 a ° ` Y � � 7.50 � � � � 5.00 ■ * � 6.00 � 2.5 D • 4.50 -- � 0.00 3.00 -2.50 1.50- O.OU i i i i i i -5.00 i i i i 1 Oct-2009 l 2 3 4 5 Oct-200R Oct-2007 Ocb2006 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-200G Sep-2005 ■ Dena's Fixed Portfo7io 22R B4) a.71 (x4) 798 (83) 7.04 (81) Zo2 (76) 6.66 (77) N/A ■ nana's Fixed PortFolio 9Z4 (83) 4.47 (29) 5.25 (74) N/A N/A • Barcap lntamediatc u.s. Govemmcnt/crodit 297 r3R) a.ss (77) 829 (73) v]7 �86) 6.97 �77) 667 �77) 526 iR� � Barcap Intermediate U.S. GovemmenUCredi� l0A (77) 3.13 (52) 5.43 (56) 3.54 (93) 1.48 (95) 1 Median 290 536 921 791 7.68 724 S.R2 1 1. � 1 1 1 1 1 1 1 Quarter Quarter Quarter Qnarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar-2010 Dec-20Q9 Sep-2009 Jun-2009 Mar-2009 Dec-2008 Dana's Fixed Portfolio 1.89 (4'n 0.49 (60) 2.93 (81) -0.2g (98) 0.13 (73) 6.26 (7) Barcap intermediate U.S. Govemment/Credit I.54 (79) 0.31 (R2) 3.25 (66) L67 (75) -0.05 (R2) 4.84 (34) US Intermediate Fixed Income (SA+CF) Median I.RS 0.60 3.63 2.64 0.75 4.16 �� BOGDAHN 24 i Preliminary Report. Retums have not been confirmed. r GROUP Peergroups subject to change. Tequesta General Employees' Retirement Plan Dana's Fixed Portfolio June 30, 2010 �, ,. � �. , ., , ,. . R.0 0.0 Over P erfuman ce 72 c 25.0 ■ � A e ■ � 0 6.4 Q = �� e 50.0 � � � i i 5(i ` u i 75.0 •� • • •�� v E r 4.R Under a �� :�.�.• � • : � " .. . rJ. P erfomence 100.0 -�- c 4.0 9/OS 9/06 9/07 9/OS 9/09 6/]0 p 4.0 4.R 5.6 C>.4 72 S.0 Total Period 5-25 25-Median Median-75 75-95 BarcapintermediateU.S.GoveromenUCredit(%) Count Count Count Count ■ Dana's Fixed Po�tfolio 7 2(29%) 0(0%) 4(57%) 1(]4%) f Under Performance -� OverPerTormance � Dew200S $ lun-2010 • Baroap Intertnediatc U.S. Government/Credit 20 0(0"/0) 2(LO%) 9(45%) 9(45"/0) � • � � ' • I 1 I2.00 R.00 ( 0.5 0 7.00 9.00 6.00 0 7.50 e 5.00 ,�, 6.00 ° 5 4.50 � 4.00 3.00 3.00 2.00 4.00 6.00 R.00 10.00 12.00 I.50 3.00 4.50 6.00 7.50 9.00 Risk (Standard Devia[ion % ) Risk(Standard Deviation % ) Re[urn Standard Deviation Rcturn Standard Deviation ■ Dana's Fixed Portfolio 7.02 3.86 ■ Dana's Fixcd PoRfolio N/A N/A • Barcap Intermediate U.S. GovemmenUGedit C..97 3.75 • Barcap Intermediate U.S. GovemmenUCredi[ 5.26 3.41 - Mcdian 7.6R 3.74 - Median S.R2 3.45 Tracking Up Down Sharpc Downsidc Error n7arket Market Alpha �R Ratio Beta Risk Capture Capture Dana's Fixed Portfolio 1.59 RR.R I SR24 1.44 0.02 LC>4 0.79 1.21 Barcap Tntermediate lJ.S. Government/Credit 0.00 100.00 100.00 0.00 N/A 1.40 L00 1.84 1 Tracking Up Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Dana'sFixed Podfolio N/A N/A N/A N/A N/A N/A N/A N/A Barcap Intermediate U.S. GovernmenUCredit 0.00 100.00 100.00 0.00 N/A 0.74 ] AO 1.59 �� rF�F 25 � , BOGDAHN Preliminary Report. Returns have not been confirmed. GR�UP Peergroups subject to change. Tequesta General Employees' Retirement Plan Benchmark History As of June 30, 2010 Total Fund Polic Total Fi�ced Income Polic � � � � �. Effective Date: Jan-1978 Effective Date: Feb-2004 Citigroup 3 Month T-Bill 100.00 Barclays Capital U.S. Government/Credit 100.00 Effective Date: Jan-2004 Effective Date: Oct-2005 S&P 500 Tndex 60.00 Barclays Capital intermediate U.S. Government/Credit 100.00 Citigroup 3 Month T-Bill 20.00 Barclays Capita] U.S. Government/Credit 20.00 Effective Date: Oct-2005 S&P 500 Index 60.00 Barclays Capital Intermediate U.S. Governinent/Credit 40.00 Effective Date: Deo-2009 S&P 500 Index 50.00 Barclays Capital Intermediate U.S. Government/Credit 40.00 MSCI EAFE 10.00 zs ��, BOGDAHN Preliminary Report. Retums have not been confirmed. GR�UP Peergroups subject to change. Statistics DeGnitions 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 retum 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 perfortnance 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 perfornlance 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. 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