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Home My WebLink AboutDocumentation_Pension General_Tab 06_02/16/2006B~I~GDA.HN ~t~NSULTING~ LZ..~. simylifying your ~naestrnent decisions MEMORANDUM TO: Tequesta General Pension Board FROM: Joe Bogdahn !~~ DATE: 16 February, 2006 z will not be able to make it down this morning 1'or the meeting. However, T can pazticipate via confez~ence call if someone could call me at $63.660.1645. x will try to call in to the Police Department, but l am not sure if there is a phone in the EOC room. In case we cannot connect: Executive Summary Quarter endive 12/31/05 The portfolio was transitiv~ned to Dana in early October, and they began trading on October 13. Through fortunate timing of the transition, we finished the quarter well ahead of the indexes; • Total portfolio up 4.54% vs. 1.47 for the indexes, 2°d percentile of the peen universe, and as shown on page 2, calendar year returns. Since this was the first quarter of your fiscal year, you eaxa see that we are more than half-way to our assumed actuarial rate right out of the blocks. (No, we can't just annualize this and call it a day!) • Calendar year-egad return of 10.03 vs. 4.00 index, again top decile performance Dana has diversified the portfolio well - we Dave about 50 individual doxxrestic stocks (no more con~naingled funds!) and a diverse international representation through various country ishares, yr foreiga index funds. The asset allocation is brolcert down like this: 26% Large Cap dozmesti.c equities 16% Mid Cap domestic equities 9% Small Cap domestic equates 6% International equities 14% high Quality, short term corporate bands 18% Government bonds I 1 % Money Mazket We contixrue to be well pleased with Dana's disciplizxed pzocess and the cozresponding perfornaazace. The firm continues to grow prudently, and has an excellent management team in place. Salem Trust is doing a fine job, and I know you are pleased to have your `own' account. 340 Rest Central Avenue • Suite 30(1 • Winter Haven, Florida 33880 ~'elephone (863)293-8289 • Facsimlle (863) 292-8717 www.bogdahnconsulting.com ~OGDAHN CONSULTING, LLB, simplifying your irmestment decisions Village of Tequesta GENERAL EMPLOYEES' PENSION PLAN December, 2005 www. bogdahnconsulting. com 340 West Central Avenue Suite 300 • Winter Haven, Florida 33880 Telephone (863) 293-8289 • Facsimile (863) 292-8717 i • Performance Evaluation for Village of Tequesta General Employees' Pension Trust Dana Investment Advisors • For the Period Ending December 31, 2005 Presented by: Bogdahn Consulting, LLC • Village of Tequesta General Employees' • Pension Trust Executive Summary Report Explanation The Executive Summary provides an overview of the fund's performance. It shows the performance in dollars, percent, and relative to the investment policy. These are provided over different time periods including up and down markets. All rates of return are annualized ff the period for which they are calculated exceeds one year. Account Reconciliation: This section shows the performance of the account in dollars, during the most recent quarter, the calendar year, and since the inception date. The Beginning Value is the value at the start of each period. The Ending Value shows the value as of the date of the report. Net contributions are the total contributions less. the total withdrawals during the period. The Investment G/L is the gain or loss resulting from the investments. It is the difference between the beginning and ending values that cannot be explained by the net contributions. Positive investment G/L figures represent a profit, and negative values represent a loss. Investment Policy: This section defines the benchmark against which the fund is being compared. Generally, this is the most important objective for a fund to achieve. The performance of the fund relative to this measure over longer periods of time, such as market cycles, is the strongest indicator of the success or failure of the investment strategy. This objective should be reasonable, and the performance of the fund should be measured against the investment policy after adjusting for risk. Trailing Returns: This section shows the cumulative time weighted returns over the last 1 year, 2 years, and so on up rough 10 years if available, as well as since the inception date. A positive difference indicates the fund has exceeded e policy's returns. The investor would prefer that this difference be positive for all time periods; however, it is more important for it to be positive for the longer periods rather than the shorter periods. Calendar Year Returns: This section gauges the consistency of performance over one year time periods. Each calendar year of performance represents the return from January 1st through December 31st. Watch out for a trend of declining relative performance in recent periods. Returns In Up/Down Markets: This section shows how the fund performed in both up and down markets. The methodology is to segregate the performance for each time period into the quarters in which the market, as defined by the policy, was positive and negative. Quarters with negative policy returns are treated as down markets, and quarters with positive policy returns are treated as up markets. Thus, in a 3 year or 12 quarter period, there might be 4 down quarters and 8 up quarters. Up market returns are calculated for the fund and the policy based on the up quarters. Down market returns are calculated for the fund and the policy based on the down quarters. The ratio of the fund's return in up markets to the policy's is the up market capture ratio. The ratio of the fund's return in down markets to the policy's is the down market capture ratio. Ideally, the fund would have a greater up market capture ratio than down market capture ratio. • Village of Tequesta General Employees' Pension Trust Executive Summary Account Reconciliation 12/31 /2005 2005 10/31 /2000 Qtr YTD Incept :#~e$ii~ii~~Value:~ :~::~::::~::~ :5~:~ : ::~::::4a89: ::::::::::~~9: :}tilet:Fl4ws :::::::::~ :::::::: :::::::::::::~:::::~::::::2$::::::: ::::::::~:ha3::: ::::::::::::::::A39 ii~ie~tiiieiii:~fL: ~~:~:~ ~:~::~:~:~~~~~:~:~:::::~Z;~ :: : ::::::::::~:SG::: ::::::: ~:::~::;:;:::~8:: iitfiti~:llalr~~::~:~:::::::: :::~:::::~:~:;::::::;fi48::::~:: ::;:::::~fi48~ :: ::::::::::: :::::::641~~: Investment Policy Trailing Returns through December 31, 2005 10/31 /2000 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept :~z~~d... ::::..:;:1~:Q3.... :.:.:$.~9 ..: ~:~..t3.i}? :~.. ...4~83.. ..:.4 59.... _.::::.4:....:: .......~ ......................:::~:::~:~:: ~ :.~:~~~:~.:.:: .65 . .....~.~..~. .pofiC.y ..........4. ~(~... ~...... .. ....~.84... .~...~ ~:: ~ ...._~4.2~ .... :::3:89 ::: ........... ~::::3:$9 :~: ............ ~. fi~_~;. ::~...3 8 ::~:::~::::: ::::::~::::~::~::::: ~: ::::::~ ::::::::......... . ....................................... ~................................ . i#f a,93 ... . 2 f~5 ..~.78..:: ..4::: :~~ .1,2..... :::~ ....0.90.. ~:::~ ::::::::::::::::::::::::::::::::::::::::::::::::::::::::~::~::::::.... ~0:8 :~: . 7 ....... ....~ ................. Calendar Year Retums 12/31 /2005 2005 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 ~~;rid :::::::::::::::::::::~~.::: :::1.~:0!3::. :. .......,..~8... .. .... :. .a .~.~..:. .....~6~ .:: ........... : ~ :::1:~3:4::~. ... ..... ............................................................. Potiejr :::::::::::::::::::: ~5~:::: ......... :::::4:1;0:::: .. . ::::::is62::::: ::::1Q7::: :::::1:::70:::. 4:133 ::::::::~:::::=::~:::~:::::~:::~:::~::::~:::::::~:::::~:~:::::::: ............................................................... . .... Retums in Up Markets 10/31 /2000 3 Yr 4 Yr 5 Yr Incept ~ilsici :::: :::::::::: X:3 :: .~a. : 5::1~: ::::::: 5:2 X . ~ 4:~i:: .... Rat$o: .:..... 'f26:~ :. ::.421::0 :. : .:~#4:? : :'11:4:17: .:::.............. Inception date is October 31, 2000 All dollar values are shown in thousands. eturns for periods exceeding one year are annualized. eturns are net of fees. Retums 'rn Down Markets 10/31 /2000 3 Yr 4 Yr 5 Yr Incept ~fii~tl ::::::::::::::::::::}O:i:::: ::::0:~ ::::: ::::;:~Q3:: ::::~:~:..~.~...... . :.~r.;. ~..........'.....'.'..:' ~:~: ~:~:~r.:: :::::::: Pc~fitry :::: ~ ::.. .1.6. .. : ... 1.6... ......1.6 .. ...........1,6. :::::8:.:::: f~atio :::::::::::........~.... :: t3:5~:::: ................. :::~:: 8:~ :: ....._......... :::::::::::::::::~ ~ :~.:: ,5. .................. ~ .. . Asset Allocation 100% MM until/ 1/31/2004 -Dana assumed acct. on 10/18/05- $ 573,084.60 2 ~ Villa a of Te uesta 9 q General Employees' Pension Plan Asset Allocation Through December 31, 2005 At Market Equity 56% • At Cost Equity 54% • Fixed Income 33% Fixed Income 34% 3 Cash &Equiv 11% Cash &Equiv 12% Village of Tequesta General Employees' • Pension Trust Universe Comparison Report Explanation The universe compares the fund's returns to a group of other investment portfolios, called a universe. Ideally the universe is comprised of many other investment funds with similar investment profiles. Comparisons are provided over many different time periods. Trailing Returns: This section focuses on longer term returns. It shows the cumulative time weighted returns and percentile rankings for the last 1 year, 2 years, 3 years, and so on up through 10 years if available. The returns for the fund, the policy and the universe percentiles are displayed. A percentile ranking of 1 is the best, and 100 is the worst. For example, a ranking of 50 means that the fund outperformed half of the universe. A ranking of 25 means the fund was in the top 25% of the universe, outperforming 75%. Above 50 is acceptable: Above 25 is excellent. High rankings over all time periods are ideal; however, it is more important to rank highly over the longer periods rather than the shorter periods. Calendar Year Returns: This section focuses on shorter periods and gauges the consistency of performance over time. It shows the calendar year returns for the fund, the investment policy and the universe percentiles. Each full year of performance represents the return from January 1st through December 31st. Ideally the fund has performed well in the earlier years and in the most recent years. Watch out for a trend toward underperformance in recent periods. Note the performance in different market environments. A high policy return indicates a bull market, and a low policy return indicates a bear market. ~II rates of return are annualized if the period for which theyare calculated exceeds one year. • 4 Village of Tequesta .General Employees' Pension Trust • Universe Com arisons P 60% Lg Cap Core, 20% Hg Quality Bd, 20% Cash Trailing Returns through December 31, 2005 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr Return 7.56 10.47 10.03 8.79 6.01 4.83 4.59 -tile 3 2 2 4 4 4 5 7Yr 8Yr ................. :p.~i~~~::: Return 3.74 5.46 4.10 5.84 4.23 3.59 3.69 -tile 55 44 49 43 39 34 32 ::~n: .e.:%: .#J ~ . I ~er. 5th %-tile 6.67 9.32 7.72 8.33 5.74 4.68 4.54 4.79 4.76 25th %-tile 4.52 6.15 5.34 6.79 4.72 3.88 3.80 4.13 4.18 50th %-tile 3.82 5.26 4.02 5.59 3.93 3.27 3.38 3.78 3.89 75th %-tile .3.42 4.81 3.35 4.95 3.48 2.87 2.99 3.47 3.58 95th %-tile 2.31 3.37 1.58 3.26 2.35 1.95 2.13 2.88 _3.05 Calendar Year Retums 4.87 4.34 4.04 3.77 3.25 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 Return 4.54 10.03 7.56 0.67 1.34 3.66 -tile ~ 2 2 38 49 51 52 ................. ~'...~Y. ~. ~ ............................................. ................................................................. . ..................................... .................... Return 1.57 4.10 7.62 1.07 1.70 4.09 -tile 50 49 37 3 6 6 Un verse ......... ........... ........... ................. 5th %-tile 2.80 7.72 10.69 1.04 1.71 4.11 6.33 5.01 8.42 9.00 25th %-tile 2.01 5.34 8.44 0.88 1.54 3.88 6.07 4.79 5.26 5.35 50th %-tile 1.55 4.02 7.26 0.66 1.34 3.67 5.83 4.58 5.01 5.14 75th %-tile 1.34 3.35 6.26 0.46 1.13 3.44 5.58 4.33 4.80 4.90 95th %-tile 0.60 1.58 4.18 0.22 0.87 3.01 5.29 3.93 4.56 4.51 ~etums are in percent. "%-tile" is the percentile ranking within the universe. Retums for periods exceeding one year are annualized. Incept is October 31, 2000 to December 31, 2005 Asset Allocation 100% MM untill 1/31/2004 -Dana assumed acct. on 10/18/05- $ 573,084.60 5 Village of Tequesta General Employees' Fixed Income Account Reconciliation 12/31 /2005 2005 01 /31 /2004 Qtr YTD Incept ~~egiii~ri~i?,~:Value ::::::::::: :::::::::~~:::;:?3~ :~::;::::: :::::::125:::::;::::~: :::::;:::::;:;~~;:: ~~'slet lows :::::::::::::::::::::::: :::~:::::~{~:::: ~~:::::::$3::~:::: :~:::::~b8:: :~:~:~:~5 :~ Trailing Returns through December 31, 2005 01/31/2004 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept :Po7iey ::::::::::::: ::::::::::::::059::. :~:: 2:34 :::~:::::::~_ ~~: ~ ~ ~ ::~ ::: ::::::::::::::~:~:::::~:~:~ ~ ~ = ~ ~ = ~~~~:::::::~::~: ......._............................................. ............ .....,...........~.~. ................................. . ::=1:3Q :::::::::::::::::~:::::::;:::::::::;:::::::::::::::::: ;:::::::::::::::::::::::::::::::::::::::::::::::::::::: :: ::: :~::~:::~::~:~:~:~: Retums in Up Markets 1 Yr 01/31/2004 Incept ~~s~d ...::.. ....::..2.'~.::......:: :: 7~:.' :Polley> ::.:::: :~ : 4:::::~ :: ::::::::::::::::::: :.:.:...... Q .......... ~: ::::::::::::~::::~:::... ,.... ~ ~ :~ ; ~ :::t6 Inception date is January 31, 2004 All dollar values are shown in thousands. eturns for periods exceeding one year are annualized. eturns are net of fees. Executive Summary Investment Policy Retums in Down Markets 1 Yr 01/31/2004 Incept :Fvrid :::::::::: =::~: ~1:0:~ :::::::::::::::::: :::::...~.~..................... . ~~~ :$: ::::::::::~:::.. . ..-:4 ::t?~c~fisy ::::::::: ::::.:.:::...1::5:.:.:....:.:..::.......:. :.::..:.:.:;.:.......:.:...~,8:: t~atiii::::~ ::::: ::::::::::6'1:6:~:::::::::::::::::: 8 S ::::::::::~::::~......... . 6 Village of Tequesta General Employees' Fixed Income • Com arisons Universe p High Quality Bond Trailinn Rata irnc thrnunh December 31.2005 • - - ., .. 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr - 5 Yr 6 Yr 7 Yr 8 Yr ~~ ~tii~d~:~::~:~:~:~:~:~:~:~:~::~::~:~::::~:~:~:~:~::::~:~:~~ :~:~:~:~:~:~:~:~:::~ ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~:::::::::::::::::::::::::::::::::::::::::::::::;:::::::::;:::::::::;:::::::::::::::::::::::::;::::::::::::;::::::::::::::::::: .~ Return 0.04 1.87 1.04 -tile 52 87 97 ::....i ......:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::;:;:;:::;::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~: ..P~ ley ..:.:.:.:.:.:.:.:.:.:.:.:...:.:~:~:~:~ ...~........~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~..~.~.~.~........................................................................ . ~ Return ..... . -0.38 3.04 2.34 -tile 86 15 29 ..e..:::~:~~~:~::~:~~ ::~::~:~~~:~:~:~:~:::::~::::~:~:~:~:~:~::~::~:~:~:::::::~:::::::~:~:~:~:~:;:::~:~:~::::::::~ ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~:~:~:~:~:~:~:::::::::~:~::~: . ~...IW~. .... . 5th %-tile 1.47 3.52 3.37 4.49 6.61 6.68 7.10 7.64 6.36 6.51 25th %-tile 0.66 2.83 2.41 3.42 4.18 5.24 5.78 6.63 5.50 5.77 50th %-tile 0.07 2.46 2.00 2.84 3.30 4.56 5.17 5.96 4.95 5.23 75th %-tile -0.23 2.09 1.57 2.01 2.39 3.44 4.16 4.79 4.39 4.63 95th %-tile -0.60 1.67 1.09 1.38 1.57 2.10 2.92 3.57 3.57 3.81 Calendar Year Returns Return -tile 0.59 36 2.34 29 :~~ j ~'~~~~ ~" ::::::::::::::::::::::: : :::: : :::: ::::::::::::::;:::::::::::::::: ::::::::::::::::::::::::::::::;:::::::::::::::::::::::::::~:: :~Un verse ..................... 5th %-tile 0.90 3.37 6.19 11.51 10.87 9.85 12.37 25th %-tile 0.66 2.41 4.54 5.34 9.37 8.40 10.90 50th %-tile 0.52 2.00 3.69 4.04 7.98 7.81 9.56 75th %-tile 0.39 1.57 2.13 2.90 5.51 7.00 7.70 95th %-tile 0.15 1.09 0.98 1.63 1.50 4.93 5.78 P.t3[ CY ...... ..., ................ . ~tetums are in percent. "%-tile" is the percentile ranking within the universe Retums for periods exceeding one year are annualized. Incept is January 31, 2004 to December 31, 2005 4.61 9.45 11.75 1.75 8.34 9.52 -0.45 7.26 8.59 -1.46 6.33 7.06 -3.67 4.50 5.91 7 Village of Tequesta General Employees' Account Reconciliation Equity Executive Summary 12/31 /2005 2005 01 /31 /2004 Qtr YTD Incept ~~Iet~Fl~utiis::~:::::: :~~:::-2::::~ ~~:34::~:::: :::::::~,i'~.+~;: ~ii#vestrt~:~eiit:~C3fL~:~:~:~~~:~:~:: ~:~:~ :::::::::::::25::::~::::: :::::::::::52:::::~~:::~: ::::::;:::~:::$.'1:~: :Ei~......~~.Valui~~:::~~~:;:~ ::::::::: ::::::::::::::::3f~4::::::::: ::::~:::3G4~~:::;:::;: ::;::::::::~:: Trailing Retums through December 31, 2005 C;alPnriar Year Retums Investment Policy Retums in Up Markets 01/31/2004 1 Yr Incept 24:8:: :~:7';2:;:::~ ::::::.::::::::::::.~. P~icjr::.:::: ~~ :::....................~....~ :~.. ;g:: .::::::::::~:.::::~:::~:: ::~::.1~... .... ~... :..:....:.: . ::::'165:3:: Inception date is January 31, 2004 All dollar values are shown in thousands. ~eturns for periods exceeding one year are annualized. Returns are net of fees. Returns in Down Markets 01 /31 /2004 1 Yr Incept ... ::~ti~d :::::::::::::::::::::.... ~~ ~ :4: 0 .t~c~fi~y :::::::::.:..::...:...2,~.........,.,.......,. ........_....................~ 1.:: ......... ~t :::::::::::::: ratio :::::::::::::::::::::...~~ .,.........,............ _ :::::1~~ ~:.:: ::: ~:: ~:::::::::: ~::: ,Q. ............~.........~.......... . Village of Tequesta General Employees' Equity Universe Comparisons Pure Large Cap Core Trailing Retums through December 31, 2005 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr ~i~~a::::::::::~:~ :::::::::::::::~::~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::;:::::::::::::::::::::::::::::::::::::::::::::::::::::::~:~:::::::::::::::~:::::::::~:~:~:~:~:~:~:~: Return 14.80 18.69 18.49 -tile 1 1 1 ...... y ........................................................................... ................................. .......................................................................................................... Return 5.77 7.21 4.91 -tile 49 50 55 .. i~~t..e..:~:~:~::~:~:~:~:~:~::~: ~:~::::~:::::::::~:::::::::~ :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~:~:~:~:~:~::~:~:~::~::~:::;:::::~:~::::~:::~:~:~:~::~:~:::~:~:~:~:~:::~:~:~:~:~:~: ~$~ ~~:~: 5th %-tile 10.60 13.64 11.33 12.35 18.13 7.89 5.40 5.96 7.12 8.24 25th %-tile 6.95 8.69 7.20 9.52 15.55 5.22 2.15 2.07 3.78 5.44 50th %-tile 5.73 7.16 5.09 7.70 14.05 3.72 0.46 -0.81 1.79 4.56 75th %-tile 5.16 6.57 4.22 6.83 12.78 2.86 -0.23 -1.80 1.07 3.72 95th %-tile 3.38 3.84 1.07 4.07 9.94 0.54 -3.05 -4.78 -1.01 1.67 Calendar Year Retums Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 Return 9.18 18.49 -tile 1 1 .Pof.~Y..~.......... . Return 2.09 4.91 -tile 49 55 ...:.i .:........::::: : :. .::: .: ::: .:: .:. :..: ..:..:.: :... :::..:. :.::::.:. .: .::..:: :: ::::::. :.: :: :~: :: :: :::: ::::; ::::::: Un xerse ................ . 5th %-tile 4.08 11.33 15.14 33.34 -15.55 -1.49 13.61 35.03 34.74 36.25 25th %-tile 2.70 7.20 11.51 28.99 -20.13 -9.35 -0.20 22.80 28.47 32.85 50th %-tile 2.06 5.09 10.39 27.83 -22.23 -12.08 -7.39 20.27 25.44 30.81 75th %-tile 1.67 4.22 8.38 24.97 -23.39 -13.51 -9.63 16.39 18.85. 25.92 95th %-tile 0.30 1.07 5.14 20.58 -26.60 -19.10 -14.67 6.13 13.04 17.69 Retums are in percent. "%-tile" is the percentile ranking within the universe. Retums for periods exceeding one year are annualised. Incept is January 31, 2004 to December 31, 2005 9 I• Fund (%) Policy (%) Difference (%) Ratio # Up Qtrs i• Fund (%) Policy (%) Difference (%) Ratio # Down Qtrs Village of Tequesta General Employees' Pension Trust Up Market Returns 9.00% 8.00% -------- ------------ -------- --------- 7.00% --- ------------ -------- --------- 6.00% --- ------------ -------- --------- 5.00 4.00% - -- -- -- - _ - 3.00% - -- -- -- - - 2.00% - -- -- -- - - 0.00% 3 Yr 4 Yr 5 Yr Incept 7.32 5.58 5.15 5.20 5.79 4.61 4.49 4.56 1.53 0.97 0.66 0.64 126.42 121.04 114.70 114.04 10.00 14.00 18.00 18.66 -0.50 /o -1.00% -- --- -1.50% -- --- _~ nnoi Down Market Retums 0.00% ° -- ---- 3 Yr -0.14 -1.64 1.50 8.54 2.00 4 Yr 5 Yr Incept -0.14 -0.14 -0.14 -1.64 -1.64 -1.64 1.50 1.50 1.50 8.54 8.54 8.54 2.00 2.00 2.00 •. Fund (%) ~ Policy (%) Asset Allocation 100% MM until) 1/31/2004 -Dana assumed acct. on 10/18/05- $ 573,084.60 10 Village of Tequesta General Employees' Pension Trust Objective Comparison v a e ~ception date is October 31, 2000 All dollar values are shown in thousands. Asset Allocation 100% MM until) 1/31/2004 -Dana assumed acct. on 10118/05- $ 573,084.60 11 VUU IVIV 1 JV 1 JV 1 VV 1 IVIVG JVG JVG VVG IVIVJ JVJ JVJ VVJ ~YIVt uV~ vV-r VV-r ~Y,VV vvv vvv .i.... Quarter Ending ^ Fund -~ Policy --~- Nominal 8% ^- CPI + 3% Village of Tequesta General Employees' Pension Trust Attributions of Returns Report Explanation Performance attribution concentrates on evaluating the effect of the manager's decisions on asset allocation and security selection. This allows the investor to see whether the manager is adding value by adjusting the actual asset allocation or by picking individual securities. This information is valuable in helping determine the amount of freedom that might be given to the manager in regard to asset allocation ranges. The result of these skills are shown for multiple time periods. The top section shows the returns for both the account and the investment policy and the results of the manager's contribution. The fund's return is thus attributed to the policy and the manager. The bottom section divides the manager's contribution into two components: asset allocation and security selection. The asset allocation effect measures the value that was added by varying the actual asset allocation from the target allocation. This is done by assuming investments, in amounts equal to the actual asset allocation weights, were made in the policy's indices so that security selection has no effect. The difference between this return and the policy's return is the asset allocation effect. The security selection is the remainder of the manager's contribution that is not explained by asset allocation. • r~ ~J 12 Village of Tequesta General Employees' Pension Trust Attribution of Returns Attribution of Performance to show Manager Contribution Policy :::::~: ... .... :;::::::::IVlariager'~Cantrili~fioi:: ............................... ............................... Fund Current Quarter 1.57 ~:~~ ><:~:~;9~~: 4.54 Year to Date 4.10 :~:~:~: ... .... .... ... ~:~:~:~:~:~::~:~:~::~:~:~:~:~:~:~:~:~:~:~~~:~:~:5;9~:~ ............................... ............................... ............................... ............................... 10.03 Years .23 .... .... ... :~:~:~: ... .... .... .... .... ............................... ............................... ............................... ~:~::~:~:~:~:~:~:~::~:~:~::~:~:~:~::~:~:::~:1~;7i~~: ............................... ............................... .............................. ............................... .............................. .01 4 Years 3.59 :~:~:~:~ .... .... .... .... .... ::~:~~~~~:~:~:~:~::~:~::~:~:~~~:~:~:~~~:~:~:~:1~:~4~~ .............................. ............................... .............................. ............................... .............................. 4.83 5 Years 3.69 ~ ~~ ~ :::::(3:9L1:: 4.59 Incept 3.78 :::: ::::~::::::~:~::::::::::;:x ::::::::::::::::::0:87`.:: 4.65 .Policy + Manager Contribution =Fund Attribution of Manager Contribution between Asset Allocation and Security Selection Asset Allocation Security Selection :: ~::: ~1i1'a~i2g~r:~tlirtr•i~istiibri:~ Current Quarter -0.75 -3.72 :~. ::2:97: Year to Date -2.12 8.05 ~:: ::5:93:: 3 Years -2.02 3.80 :::: ... .... .... ... :::::~:~:~ ::::::::::::::~::~::1;78: ............................... ............................... ............................... ............................... Years 1.50 .74 ... .... ... .... ... :::: ... .... ... .... ... ............................... ............................... ............................... ............................... ............................... :::::~:::~:~:::~::~::::~:_:::::::1:24 ............................... ............................... ............................... ............................... ............................... Years 1.21 .11 ... .... ... .... ... :~: ............................... ............................... ............................... ............................... ............................... :~::0:9(t Incept -1.17 2.04 :::: ::: ::::::::: :: ::::: ~::::~: ~ ::0:87:: ~sset Allocation + Security Selection =Manager Contribution Asset Allocation 100% MM until) 1/31/2004 -Dana assumed acct. on 10/18/05- $ 573,084.60 13 i• 5.00% 4.00% P e 3.00% r c 2.00% e n t 1.00% E 0.00% f e -1.00% C t -2.00% 3 00°/ Village of Tequesta General Employees' Pension Trust Asset Allocation Effect ° M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 .lua 5u4 uu4 muo ~vo auo uvo • Quarter Ending Security Selection Effect 5.00% 4.00% P e 3.00% r ~ 2.00% e n t 1.00% E f 0.00% f e -1.00% C t -2.00% -3.00% ^ 1 ~ i i i i i i S04 D04 M05 J05 S05 D05 V VV vv r Quarter Ending • Quarter) Effect Cumulative Effect ~ Y Asset Allocation 100% MM until) 1/31/2004 -Dana assumed acct. on 10/18/05- $ 573,084.60 14 Village of Tequesta General Employees' Pension Trust Asset Allocation vs Targets 125.00°/ 100.00°/ -------------------------------------------------------------------- 75.00°/ -- -- -- -- -- -- -- - -- = -- -- ----------------------------------------------------------------- 50.00°/ -- -- -- -- -- -- -- -- -- -- -- ------- ------------------------------------------------------------ 25.00°/ -- -- -- -- -- -- -- -- -- -- -- -- ---- ------------------------------------------------------ '0.00% M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 D05 Quarter Ending ~ Cash & Equiv ~ Target 125.00°/ 100.00°/ --------------------------------- ---------------------------------------------------=---------------------------------------------------- ------------------ 75.00% ---------------------------------------------------------------------------------- ------------------------------------------------------------------------------------ ---~--~~ 50.00% -------------- ------- ----------------------- -------------- ----------------------------------- -- -- -- -- - - 25.00°/ ------------------------------------------- -- ------------------------ -- -- -- - -- - -- 0.00% 1 J 1 S 1 D 1 2 J 2 S 2 D 2 3 J 3 S 3 D 3 M04 J04 S04 D04 M05 J05 S05 D05 Quarter Ending ~ Equity ~ Target 125.00°/ -- ----------------------------------------------------------------- 75.00°/ ------------------------------------- ------------------------------------------- --------------------------------- -------------------- ----------------- 50.00°/ ------------------------------------------------------------------------------ ------------------------ -------------------------------------------------- 25.00°/ - ------------------ ------------------------------- ---------------------------------------------------- -- -- -- -- 0.00% 1 J 1 S 1 D 1 2 J 2 S 2 D 2 03 J 3 S 3 D 3 M04 J04 S04 D04 M05 J05 S05 D05 • Quarter Ending Fixed Income ~ Target Asset Allocation 100% MM until) 1/31/2004 -Dana assumed acct. on 10/18/05- $ 573,084.60 15 Village of Tequesta General Employees' Pension Trust - Manager Contribution 3.50% 3.00% ------------------------------------------------------------------------------------------------------------------------------------ --------------------------- --------------------------------------------------------- -- 2.50% -------------------------------------------------- "-----------------.__.-------------------------------- 2.00% ------------------------------------------------------------------------------------------------------------------------------------------------------- R ----------- e 1.50% ------------------------------------------------------------------------------------------------------------------------------------------------------- t -------------------------------------------------------------------------------------------------------- ----------------------------------------- u 1.00% ----'---°- r n 0.50% ----------------------------------------------------------------------------------------------------------------------- 0.00% -0.50% '~- ____ : -- -1.00% M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 D05 Quarter Ending • ~ Quarterly ---- Cumulative Growth of $100 Fund vs Policy $ $ v a $ I u e $ VVV NIV 1 JV I JU I VV I IVIUL JUL JVL VVL IVIVJ JVJ JVJ VVJ IVIVY JV't vv-t /V'Y IVIVJ JVJ JVJ vV.' • Quarter Ending ^ - Fund -~- Policy Asset Allocation 100% MM until) 1/31/2004 -Dana assumed acct. on 10/18/05- $ 573,084.60 16 Village of Tequesta General Employees' Pension Trust Quarterly Comparison Analysis ($) Fund Policy Dill Nominal 8% Dill CPI + 3% Dill Ending Oct 2000 109 109 0 109 0 109 0 Dec 2000 115 115 0 116 -0 115 1 Mar 2001 125 125 -0 126 -1 125 -0 Jun 2001 126 126 -0 128 -2 127 -1 Sep 2001 148 148 -0 152 -4 149 -1 Dec 2001 173 173 -1 179 -6 173 -0 Mar 2002 205 205 -1 214 -9 208 -4 Jun 2002 228 229 -1 242 -13 235 -6 Sep 2002 244 245 -1 261 -17 252 -9 Dec 2002 268 270 -1 290 -22 278 -10 Mar 2003 298 299 -2 325 -27 314 -16 Jun 2003 312 314 -2 345 -33 329 -17 Sep 2003 16 18 -2 50 -35 34 -18 Dec 2003 353 355 -2 390 -37 372 -19 Mar 2004 394 395 -0 431 -37 414 -20 Jun 2004 415 419 -4 462 -47 445 -30 Sep 2004 439 440 -1 493 -55 471 -32 Dec 2004 489 491 -2 528 -39 501 -12 Mar 2005 520 517 2 572 -52 546 -26 Jun 2005 569 561 8 617 -48 588 -19 Sep 2005 595 582 13 639 -44 615 -20 Dec 2005 648 618 30 678 -30 640 8 All dollar values are shown in thousands. • Asset Allocation 100% MM until) 1/31/2004 -Dana assumed acct. on 10/18/05- $ 573,084.60 17 Village of Tequesta General Employees' Pension Trust Quarterly Comparison Analysis (%) Fund Policy Dill Nominal 8% Dill CPI + 3% Diff Ending Mar 2001 1.16 1.40 -0.24 1.94 -0.78 1.95 -0.79 Jun 2001 1.09 1.07 0.02 1.94 -0.85 1.85 -0.76 Sep 2001 0.79 0.91 -0.12 1.94 -1.15 0.94 -0.15 Dec 2001 0.56 0.65 -0.09 1.94 -1.38 -0.16 0.72 Mar 2002 0.33 0.44 -0.11 1.94 -1.61 1.95 -1.62 Jun 2002 0.34 0.44 -0.10 1.94 -1.60 1.44 -1.10 Sep 2002 0.34 0.43 -0.09 1.94 -1.60 1.34 -1.00 Dec 2002 0.32 0.39 -0.07 1.94 -1.62 0.74 -0.42 Mar 2003 0.20 0.30 -0.10 1.94 -1.74 2.55 -2.35 Jun 2003 0.19 0.28 -0.09 1.94 -1.75 0.44 -0.25 Sep 2003 0.12 0.25 -0.13 1.94 -1.82 1.54 -1.42 Dec 2003 0.16 0.24 -0.08 1.94 -1.78 0.24 -0.08 Mar 2004 2.08 1.68 0.40 1.94 0.14 2.35 -0.27 Jun 2004 -0.41 0.44 -0.85 1.94 -2.35 1.95 -2.36 Sep 2004 0.26 -0.34 0.60 1.94 -1.68 0.84 -0.58 Dec 2004 5.54 5.74 -0.20 1.94 3.60 0.94 4.60 Mar 2005 -0.40 -1.30 0.90 1.94 -2.34 2.35 -2.75 Jun 2005 2.71 1.66 1.05 1.94 0.77 1.44 1.27 Sep 2005 2.89 2.14 0.75 1.94 0.95 2.96 -0.07 Dec 2005 4.54 1.57 2.97 1.94 2.60 -0.26 4.80 Incept. 4.65 3.78 0.87 8.00 -3.35 5.44 -0.79 Returns for periods exceeding one year are annualized. r~ L_J Asset Allocation 100% MM until) 1/31/2004 -Dana assumed acct. on 10/18/05- $ 573,084.60 18 Village of Tequesta General Employees' • Pension Trust Risk Measures Report Explanation The evaluation of a fund's performance should extend beyond return to encompass measures of risk. The next two pages are used to determine the level of risk to which the fund has been exposed, and whether the return has been commensurate with the risk taken. All measures are calculated for both the fund and the policy as well as the difference between the two. Up to four time periods are evaluated depending on the age of the fund. # Of Negative Qtrs/# Of Positive Qtrs: Number of negative quarters shows the number of quarters in which the return was less than zero, and the number of positive quarters is the number of quarterly returns which were greater or equal to zero, Batting Average: The batting average is a measure of consistency. It shows the percent of the quarters the fund has beaten the policy and the percent of the quarters the policy has beat the fund. A high average for the fund (e.g. over 50) is desirable, indicating the fund has beaten the policy frequently. Worst Quarter/Best Quarter/Range: The worst quarter is the lowest quarterly return experienced during the period, a measure of downside risk. The best quarter is the highest quarterly return, and the range is the difference of the high and low, and indicates dispersion. Standard Deviation: Standard deviation measures the total volatility of the fund, by measuring dispersion. Higher standard deviation indicates higher risk. If the quarterly or monthly returns are all the same the standard deviation will be .zero. The more they vary from one another, the higher the standard deviation. Thus, it measures uncertainty, which is a measure of risk. Alpha/Beta/R-Squared: If the policy is appropriate, then the alpha should be positive, the beta close to one, and the r-squared should be high. Beta measures risk relative to the policy. A beta of 1 suggests risk equivalent to the policy. Higher betas indicate higher relative risk. A beta of 1.2 indicates 20% more risk than the policy. The alpha measures the return adjusting for beta. The higher the alpha, the better. R-squared measures the relationship between the policy and the fund. A high r-squared means the returns of the fund can largely be explained by movements of the policy. The higher the r-squared, the more reliable the alpha and the beta. R-squared may range from 0 to 100. Beta, alpha and r-squared are derived from regression analysis using the fund and policy returns as the dependent and independent variables respectively. Roughly, one would expect the fund's performance to equal the return of the policy multiplied by the beta plus the alpha. Sharpe Ratio/Treynor Ratio: The Sharpe and Treynor ratios are similar. The Sharpe ratio is the excess return per unit of total risk as measured by standard deviation. The Treynor ratio is the excess return per unit of market risk as measured by beta. Both of these should be compared against the corresponding value for the policy. Higher numbers are better, indicating more return for the level of risk that was experienced. 19 Village of Tequesta General Employees' Pension Trust Risk Measures :3. Yr ::::::::::::::::::::::::::::::::::::::::::::: ::::::::::~.irsiii:: :::::::::f*islic~!: :;::::::::::::Di~:: # of Negative Qtrs 2.00 2.00 0.00 # of Positive Qtrs 10.00 10.00 0.00 Batting Average 50.00 50.00 0.00 Worst Qtr -0.41 -1.30 0.89 Best Qtr 5.54 5.74 -0.20 Range 5.95 7.04 -1.09 Worst 4 Qtrs 0.67 1.07 -0.40 Standard Deviation 4.40 3.73 0.67 Beta 0.88 1.00 -0.12 Annualized Alpha 2.04 0.00 2.04 R-Squared 0.57 1.00 -0.43 Sharpe Ratio 0.96 0.66 0.30 Treynor Ratio 4.82 2.46 2.36 Tracking Error 2.86 0.00 2.86 Information Ratio 0.62 • :b:.~.c ::::::::::::::::::::::::::::::: . ::::::::: ~ :..~.~.~. ............ ............. # of Negative Qtrs 2.00 2.00 0.00 # of Positive Qtrs 18.00 18.00 0.00 Batting Average 35.00 65.00 -30.00 Worst Qtr -0.41 -1.30 0.89 Best Qtr 5.54 5.74 -0.20 Range 5.95 7.04 -1.09 Worst 4 Qtrs 0.67 1.07 -0.40 Standard Deviation 3.43 2.89 0.54 Beta 0.90 1.00 -0.10 Annualized Alpha 1.04 0.00 1.04 R-Squared 0.58 1.00 -0.42 Sharpe Ratio 0.69 0.51 0.18 Treynor Ratio 2.64 1.48 1.16 Tracking Error 2.22 0.00 2.22 Information Ratio 0.41 .7 ......................... :::;::::~u~ ~ :: ............ :::::::..... . .... !: .. . ::::::::::::::13iff:: # of Negative Qtrs 2.00 2.00 0.00 # of Positive Qtrs 14.00 14.00 0.00 Batting Average 37.50 62.50 -25.00 Worst Qtr -0.41 -1.30 0.89 Best Qtr 5.54 5.74 -0.20 Range 5.95 7.04 -1.09 Worst 4 Qtrs 0.67 1.07 -0.40 Standard Deviation 3.84 3.24 0.60 Beta 0.89 1.00 -0.11 Annualized Alpha 1.42 0.00 1.42 R-Squared 0.58 1.00 -0.42 Sharpe Ratio 0.80 0.57 0.23 Treynor Ratio 3.46 1.84 1.62 Tracking Error 2.48 0.00 2.48 Information Ratio 0.50 ~ Rat ::::::::::::::::::::::::::::::::::: :::::: ~Ft~nd:: :::::::: Pt~iCy: :::::::::::::: Qlff # of Negative Qtrs 2.00 2.00 0.00 # of Positive Qtrs 18.66 18.66 0.00 Batting Average 37.09 62.91 -25.82 Worst Qtr -0.41 -1.30 0.89 Best Qtr 5.54 5.74 -0.20 Range 5.95 7.04 -1.09 Worst 4 Qtrs 0.67 1.07 -0.40 Standard Deviation 3.38 2.85 0.53 Beta 0.90 1.00 -0.10 Annualized Alpha 1.01 0.00 1.01 R-Squared 0.58 1.00 -0.42 Sharpe Ratio 0.68 0.50 0.18 Treynor Ratio 2.56 1.43 1.13 Tracking Error 2.19 0.00 2.19 Information Ratio 0.40 Asset Allocation 100% MM until) 1/31/2004 -Dana assumed acct. on 10/18/05- $ 573,084.60 20 I. s.oo°i° ~.oo°i° 6.00% A 5.00% n n u a I 4.00% •z e d 3.00% R e t u r 2.00% n 1.00% 0.00% -1.00°~ 0 Village of Tequesta General Employees' Pension Trust Return vs Risk through December 31, 2005 ~ LB Gov/Corp ~ Fund ~3 Mo TBiI 0% 5.00% 10.00% 15.OO~P 500 20.00% 25. Risk (Annualized Std Dev) • __~_ Policy Asset Allocation 100% MM untill 1/31/2004 -Dana assumed acct. on 10/18/05- $ 573,084.60 21 00°/ Village of Tequesta General Employees' • Pension Trust Return vs Risk through December 31, 2005 3 Years 4 Years • 20.00% 15.00% R e t 10.00% u r n s 5.00% ~0 0.00% 1.00% 3.00% 5.00% 7.00% 9.00% 11.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% Risk (Annualized Std Dev) 5 Years 8.00% 7.00% 6.00% R 5.00% e t 4.00% u r n 3.00% s 2.00% 1.00% 0.00° o 6.00% 5.00% 10.00% 15.00% 20.00% Risk (Annualized Std Dev) • --f --Policy Asset Allocation 100% MM until) 1/31/2004 -Dana assumed acct. on 10/18/05- $ 573,084.60 22 ~S&P ___ __ ~ Fund -- ALB Gov/Corp 3 Mo TBill 6.50% 6.00% 0 5.5 o LB Gov/Corp 5.00% ~ Fund R 4.50% e ~ 4.00% ~S&P 500 r 3.50% __._ n s 3.00% 2.50% 2.00% 1.50°o M it 6.00% 5.00% 10.00% 15.00% 20.00% Risk (Annualized Std Dev) Inception 8.00% 7.00% ~ LB Gov/Corp 6.00% 5.00% ~: R Fund e 4.00% _ ______.___._ __ t u 3.00% r n 2.00% 3 o TBill s 1.00% 0.00% -1.00% 5.00% 15.Of~P 500 0.00% 10.00% 20.00% Risk (Annualized Std Dev) 0% Policy: Village of Tequesta General Employees' Pension Trust First Objective: Second Objective: 10/31 /2000-12/31 /2003 O 1 /01 /2004-12/31 /2005 10/31 /2000-12/31 /2005 10/31/2000-12/31/2005 100.00 Citigroup Treasury Bill - 3 Month 60.00 S&P 500 20.00 Citigroup Treasury Bill - 3 Month 20.00 Lehman Gov/Credit Bond Annual Return of 8.00% 100.00 US Consumer Price Index + 3.00 annual adder Universe Data: 60% Lg Cap Core, 20% Hg Quality Bd, 20% Cash 10/31/2000-12/31/2003 100.00 Government Money Market 01/01/2004-12/31/2005 20.00 High Quality Bond 60.00 Pure Large Cap Core 20.00 Government Money Market • • 23 • Bogdahn Consulting, LLC. CONTRIBUTIONS/WITHDRAWALS Tequesta General Combined Account From 10-Ol-OS To 12-31-OS Tran Trade Settle Broker Code Date Date Security Amount Quantity Code Conmtisslon CONTRIBUTIONS ti 10-04-05 10-04-05 .Cash 316,946.71 Transfer from Rockwood Cap ti 10-04-05 10-04-05 Cash 211,291.14 Transfer from Rockwood Cap li 10-07-05 10-07-05 Cash 5,270.25 Funds received li 10-18-05 10-18-05 Cash 24,673.78 Transfer from Rockwood Cap li 10-18-05 10-18-OS Cash 20,172.97 Transfer fro Rockwood Cap li 10-20-05 10-20-05 Cash 5,965.30 Funds received li 11-07-05 11-07-05 Cash 6,040.05 Ftmds received li 11-18-05 11-18-05 Cash 6,565.13 Funds received li 12-O1-OS 12-01-OS Cash 6,656.12 Funds received li 12-16-OS 12-16-05 Cash 6,732.90 Funds received • li 12-28-OS 12-28-05 Cash 6,763.31 Funds received 617,077.66 WITH DRAWALS l0 10-03-OS 10-03-OS Cash 860.00 Check 1009 l0 10-03-OS 10-03-05 Cash 13,271.19 Check 1012 l0 10-04-05 10-04-05 Cash 959.35 Check 1007 l0 10-04-05 10-04-OS Cash 528,237.85 wire transfer from Rockwood losing account ' l0 10-06-OS 10-06-05 Cash 500.00 Check 1010 l0 10-07-05 10-07-05 Cash 106.33 Check 1008 l0 10-18-OS 10-18-OS Cash 44,846.75 wire transfer from Rockwood-closing account l0 10-18-05 10-18-05 Cash 80.00 charge for wire fees l0 10-31-05 10-31-05 Cash 423 I-rror correction l0 12-O1-OS 12-01-05 Cash 0.01 clear prior account l0 12-02-05 12-02-05 Cash 601.80 Check 1016 l0 12-06-OS 12-06-05 Cash 400.00 Check 1019 l0 12-21-05 12-21-OS Cash 500.00 Check 1018 • 1 • Bogdahn Consulting, LLC. - CONTRIBUTIONS/WITHDRAWALS Tequesta General Combined Account From 10-01-OS To 12-31-OS Tran Trade Settle Broker Code Date Date Security Amount Quantity Code Commission l0 12-27-05 12-27-05 Cash 743.00 Check 1020 591,110.51 EXPENSE ACCOUNTS AFTER FEE PERFORMANCE EXPENSE ACCOUNTS 0.00 0.00 PORTFOLIO NET TOTAL 25,967.15 EXPENSE ACCOUNTS PAID BY CLIENT 0.00 • AFTER FEE PERFORMANCE EXPENSE ACCOUNTS PAID BY CLIENT 0.00 GRAND TOTAL • 25,967.15 2 • • 1x11 u Quantity DOMESTIC EQUITIF Common Stock Large Cap 156.000 76.000 134.000 69.000 70.000 117.000 160.000 124.000 ] 12.000 126.000 55.000 118.000 74.000 240.000 81.000 109.000 95.000 109.000 149.000 280.000 170.000 92.000 135.000 158.000 117.000 150.000 149.000 Security S AT&T hrc. /formally AT&T Corp Ahria Group Inc/Philip Morris BANK OF AMERICA CORP Bear Steams Co. Becton Dickinson & Co. Burlington Northern Santa Fe Corp. CIT Group Caterpillar Inc ChevronTexaco Corp Citigroup Inc. Conocaphillips Dow Chemical Co.Com Hartford Finl Services Intel Corp. International Business Machines Johnson & Johnson Kimberly Clark Corp. Marathon Oil Corporation Met Life Inc. Motorola, Inc COM National City Corp. PPG Industries United Technologies Corp. Verizon Communications WACHOVIA CORP COM Washington Mutual, Inc, Wyeth Com Bogtiahn Consulting, LLC. PORTFOLIO APPRAISAL Tequesta General Combined Account December 31, 2005 (Excluding Reinvested Divs.) Unit Total Cost Cost Price 24.89 3,882.84 69.60 5,289.89 41.75 5,594.50 100.93 6,964.17 58.47 4,093.17 56.42 6,601.14 43.53 6,965.07 54.20 6,720.82 59.09 6,618.08 44.56 5,614.56 61.27 3,369.85 42.54 5,020.13 74.83 5,537.44 23.16 5,558.40 82.15 6,654.18 63.53 6,924.86 56.95 5,410.31 59.16 6,448.44 46.77 6,968.94 20.02 .5,606.30 32.26 5,484.52 56.35 5,183.84 50.41 6,805.36 29.88 4,720.63 46.87 5,484.26 37.19 5,578.50 45.73 6,813.58 155,913.78 Mid Cap Market Pct. Vslue Gaiu/Loss Assets 24.49 3,820.44 -62.40 0.6 74.72 5,678.72 388.83 0.9 46.15 6,184.10 589.60 1.0 115.53 7,971.57 1,007.40 1.2 60.08 4,205.60 112.43 0.6 70.82 8,285.94 1,684.80 1.3 51.78 8,284.80 1,319.73 1.3 57.77 7,163.48 442.66 1.1 56.77 6,358.24 -259.84 1.0 48.53 6,114.78 500.22 0.9 58.18 3,199.90 -169.95 0.5 43.82 5,170.76 150.63 0.8 85.89 6,355.86 818.42 1.0 24.96 5,990.40 432.00 0.9 82.20 6,658.20 4.02 1.0 60.10 6,550.90 -373.96 1.0 59.65 5,666.75 256.44 0.9 60.97 6,645.73 197.29 1.0 49.00 7,301.00 332.06 1.1 22.59 6,325.20 718.90 1.0 33.57 5,706.90 222.38 0.9 57.90 5,326.80 142.96 0.8 55.91 7,547.85 742.49 1.2 30.12 4,758.96 38.33 0.7 52.86 6,184.62 700.36 1.0 43.50 6,525.00 946.50 1.0 46.07 6,864.43 50.85 1.1 166,846.93 10,933.15 25.8 257.000 AMDOCS LTD ORD 25.89 6,653.29 27.50 7,067.50 414.21 1.1 104.000 APACHE CORP COM 62.94 6,545.65 68.52 7,126.08 580.43 1.1 206.000 D.R. Horton Inc. 31.25 6,436.61 35.73 7,360.38 923.77 1.1 114.000 Eaton Corp. 59.33 6,763.64 67.09 7,648.26 884.62 1.2 149.000 FISERV INC COM 44.75 6,667.29 43.27 6,447.23 -220.06 1.0 102.000 Johnson Controls Inc. 65.49 6,680.48 72.91 7,436.82 756.34 1.1 Corn 120.000 MCKESSON HBOC 43.74 5,248.87 51.59 6,190.80 941.93 1.0 INC COM 208.000 Nordstrom Inc. 31.55 6,562.42 37.40 7,779.20 1,216.78 1.2 207.000 P P & L RES INC COM 29.85 6,178.17 29.40 6,085.80 -92.37 0.9 194.000 Pepsi Bottling Group Inc 27.48 5,331.08 28.61 5,550.34 219.26 0.9 135.000 Sempra Energy 43.30 5,845.24 44.84 6,053.40 208.16 0.9 1 . Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL Tequesta General Combined Account December 31, 2005 (Excluding Reinvested Divs.) Unit Total Market Pct. Quantity Security Cost Cost Price Value Gain/Loss Assets 175.000 Supervalu Inc. 29.85 5,223.15 32.48 5,684.00 460.85 0.9 117.000 VF Corporation 55.34 6,475.29 55.34 6,474.78 -0.51 1.0 130.000 Valero Energy Corp. 49.43 6,425.90 51.60 6,708.00 282.10 1.0 94.000 Wellpoint Health 71.00 6,674.14 79.79 7,500.26 826.12 1.2 Networks Inc. NEW 93,711.22 101,112.85 7,401.63 15.6 Small Cap 288.000 Diodes Inc 23.16 6,670.21 31.05 8,942.40 2,272.19 1.4 188.000 Jarden Corp. 33.62 6,321.12 30.15 5,668.20 -652.92 0.9 309.000 Labor Ready Inc 21.92 6,772.88 20.82 6,433.38 -339.50 1.0 117.000 Pantry Inc 33.25 3,890.60 46.99 5,497.83 1,607.23 0.8 172.000 Portalplayer Inc 27.07 4,655.64 28.32 4,871.04 215.40 0.8 220.000 Progress Software Corp 29.83 6,562.53 28.38 6,243.60 -318.93 I.0 139.000 Quest Diagnostics 48.28 6,710.93 51.48 7,155.72 444.79 1.1 115.000 Selective Insumace 47.53 5,466.17 53.10 6,106.50 640.33 0.9 Group Inc 50.000 Siena Health Services 80.90 4,045.00 79.96 3,998.00 -47.00 0.6 Inc. 51,095.08 54,916.67 3,821.59 8.5 • 300,720.08 322,876.45 22,156.37 49.8 Dividend Receivable Dividend Receivable- 342.06 342.06 0.00 0.1 Equities 301,062.14 323,218.51 22,156.37 49.9 INTERNATIONAL EQ UITIES Global Funds Foreign 95.000 Central Europe & 42.69 4,055.34 42.46 4,033.70 -21.64 0.6 Russia Fd Inc 305.000 IShazesJapanIndex 13.67 4,169.35 13.52 4,123.60 -45.75 0.6 150.000 IShares MSCI Austria 27.44 4,116.41 27.59 4,138.50 22.09 0.6 Index FD 60.000 IShares MSCI Brazil 33.26. 1,995.60 33.37 2,002.20 6.60 0.3 Index FD 85.000 IShares MSCI Mexico 35.97 3,057.45 35.71 3,035.35 -22.10 0.5 Index FD 100.000 IShares MSCI 20.49 2,049.00 20.32 2,032.00 -17.00 0.3 Netherlands Index FD 135.000 Ishazes Inc. MSCI 22.54 3,042.90 22.70 3,064.50 21.60 0.5 Sweden Index Fund 75.000 Morgan Stanley India 37.40 2,804.66 37.35 2,801.25 -3.41 0.4 Investments 90.000 Turkish Investment Fund 23.80 2,142.14 25.24 2,271.60 129.46 0.4 27,432.85 27,502.70 69.85 4.2 70.000 IShazes Inc MSCI South 44.40 3,108.00 44.75 3,132.50 24.50 0.5 Korea Index Fund (60.000 IShazes Inc MSCI 18.70 2,992.00 18.58 2,972.80 -19.20 0.5 • United Kingdom Index Fund 2 • Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL Tequesta General Combined Account December 31, 2005 (Ezcluding Reinvested Divs.) Unit Total Market PM. Quantity Security Cost Cost Price Value Gain/L.oss Asaets 160.000 IShares MSCI Australia 18.67 2,987.20 18.81 3,009.60 22.40 0.5 Index FD 70.000 IsharesMSCIEAFE 59.66 4,176.20 59.43 4,160.10 -16.10 0.6 Index Fund 13,263.40 13,275.00 11.60 2.0 40,696.25 40,777.70 81.45 6.3 40,696.25 40,777.70 81.45 6.3 FIXED INCOME Corporate Bonds 5,000 Nations Bank Corp. 102.61 5,130.45 101.76 5,088.02 -42.44 0.8 7.500% Due 09-1 S-06 5,000 Hewlett Packard Co. 101.36 5,067.80 100.84 5,041.81 -26.00 0.8 5.750% Due 12-15-06 5,000 Carolina Power & Light 103.66 5,183.05 102.73 5,136.53 -46.53 0.8 6.800% Due 08-15-07 5,000 Merrill Lynch & Co. 99.31 4,965.49 98.97 4,948.49 -17.01 0.8 4.250% Due 09-14-07 5,000 CIT Group Inc Series 100.02 5,001.24 99.62 4,980.97 -20.28 0.8 MTN • 4.750% Due 08-15-08 5,000 CSXCorp 103.98 5,199.00 103.15 5,157.49 X1.51 0.8 6.250% Due 10-15-08 5,000 Target Corp. 102.15 5,107.25 101.47 5,073.63 -33.62 0.8 5.375% Due 06-15-09 5,000 Countrywide Home 101.91 5,095.25 101.51 5,075.64 -19.62 0.8 Loans Inc. 5.625% Due 07-15-09 5,000 Capital One Bank Notes 102.76 5,137.75 102.38 5,119.24 -18.52 0.8 5.750% Due 09-15-10 5,000 Kohls Corp 106.08 5,304.10 105.29 5,264.36 -39.75 0.8 6.300% Due 03-01-I 1 5,000 Bristol Myers Squibb 103.21 5,160.65 (03.28 5,163.90 3.25 0.8 Co. 5.750% Due 10-01-11 5,000 Bank One Corp. 104.10 5,205.05 104.00 5,199.78 -5.28 0.8 5.900% Due 11-15-11 5,000 Gannett Co 107.26 5,363.00 103.73 5,186.49 -176.51 0.8 6.375% Due 04-01-12 5,000 SLM Corporation 100.07 5,003.65 100.15 5,007.26 3.61 0.8 5.125% Due 08-27-12 5,000 Avon Products 96.70 4,834.80 97.22 4,861.08 26.28 0.8 4.625% Due OS-15-13 5,000 Goldman Sachs 99.78 4,989.15 99.98 4,998.80 9.65 0.8 5.250% Due 10-15-13 5,000 HSBC Finance Corp 99.26 4,962.75 99.09 4,954.57 -8.19 0.8 5.250% Due 04-15-15 5,000 Lowes Companies ]nc 99.85 4,992.25 100.08 5,004.17 11.92 0.8 5.000% Due 10-15-15 91,702.68 91,262.17 -440.52 14.1 Accrued Interest 1,272.70 0.2 • 91,702.68 92,534.86 -440.52 14.3 3 • Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL Tequesta General Combined Account December 31, 2005 (Excluding Reinvested DIvs.) Uuit Total Market Pct. Quantity Security Cost Cost Price Value GaL~/I.~oss Asseta Government Bonds 10,000 Federal Home Loan 100.45 10,044.90 100.09 10,009.38 -35.53 1.5 Bank 4.875%Due 11-15-06 15,000 United States Treasury 99.21 14,880.82 99.21 14,882.22 1.40 2.3 Notes 3.500% Due 11-15-06 15,000 United States Treasury 99.42 14,912.39 99.30 14,895.71 -16.69 2.3 4.000% Due 09-30-07 10,000 FHLB Series 580 99.27 9,926.50 98.97 9,896.88 -29.63 1.5 4.125% Due 10-19-07 20,000 US Treasury Notes 99.44 19,888.90 99.45 19,889.84 0.94 3.1 4.125% Due 08-15-08 5,000 Federal Home Loan 101.57 5,078.55 101.03 5,051.56 -26.99 0.8 Mortgage Corp 5.125% Due 10-15-08 15,000 US treasury Note 99.39 14,909.18 99.48 14,921.49 12.31 2.3 4.250% Due 10-15-10 7,000 FEDERAL NATL MTG 103.76 7,263.36 103.38 7,236.25 -27.11 1.1 ASSN 5.500% Due 03-15-11 • 3,000 FHLMC 98.59 2,957.65 98.22 2,946.56 -11.09 0.5 4.500% Due OI-IS-13 10,000 United States Treasury 98.51 9,850.78 99.11 9,910.55 59.77 1.5 Notes 4250% Due OS-15-13 3,000 FNMA 101.38 3,041.42 101.50 3,045.00 3.58 0.5 5.000% Due 04-15-15 5,000 US Treasury Note 98.01 4,900.63 98.71 4,935.35 34.72 0.8 4.250% Due 08-15-15 117,655.08 117,620.78 -34.30 18.2 Accrued Interest 1,312.00 0.2 117,655.08 118,932.78 -34.30 18.4 209,357.76 211,467.64 -474.82 32.6 CASH & EQUIV. Cash Accounts Cash & Equiv. Cash 47,642.98 47,642.98 0.00 7.4 47,642.98 47,642.98 0.00 7.4 Money Markets 24,772 Goldman Sachs 1.00 24,772.29 1.00 24,772.29 0.00 3.8 Fin.Sq.Treasury Oblib. Admin 24,772.29 24,772.29 0.00 3.8 72,415.27 72,415.27 0.00 11.2 TOTAL PORTFOLIO 623,531.42 647,879.12 21,763.00 100.0 • 4