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Home My WebLink AboutDocumentation_Pension General_Tab 5.3a_05/04/2015Village of Tequesta General Employees' Retirement Plan Investment Performance Review As of: March 31, 2015 Preliminary Report Preliminary Universe Data 1st Quarter 2015 Market Environment 1 The Market Environment Major Market Index Performance As of March 31, 2015 Quarter Performance MSCI ACWxUS3.6% Investmentreturnsduringthefirstquarterof2015werepositiveacross MSCI EAFE5.0% theboard.Domestically,smallandmidcapcompaniesoutperformed 2.3% MSCI Emerg Mkts largecapcompaniesforthesecondconsecutivequarter.This outperformanceisduelargelytoastrengtheningU.S.dollar(USD), S&P 5001.0% withlargecapcompaniesintheS&P500Indexgenerallyhavingmore Russell 30001.8% internationalcurrencyexposureversusthemoredomesticallyfocused Russell 10001.6% Russell MidCap smallcapcompaniesintheRussell2000Index.4.0% Russell 2000 4.3% DespitethestrongUSD,whichprovidedaheadwindtointernational returnsintheU.S.,internationalstockshadastrongstartversus Barclays US Agg 1.6% domesticindices.Throughthefirstquarter,bothdeveloped Barclays US Govt 1.6% internationalandemergingmarketsoutperformedlargecapU.S. Barclays US TIPS 1.4% indiceswithonlymidtosmalldomesticcompanieskeepingpace.The Barclays MBS 1.1% outperformancewasprimarilydrivenbytheEuropeanCentralBank’s Barclays Corp IG 2.3% Januarydecisiontobeginaquantitativeeasingprogramtocombat slowinggrowthprospectsthroughouttheregion. 3-Month T-Bill0.0% 0.0%2.0%4.0%6.0% U.S.interestratesfluctuatedconsiderablyduetostrengthoftheUSD, 1-Year Performance U.S.economicdata,geopoliticalnews,andtheprospectoftighter monetarypolicy,onlytoendslightlylowerthanwheretheybeganfor MSCI ACWxUS-0.6% thequarter.Thisdeclineinrateswasatailwindforbondreturns. MSCI EAFE -0.5% InvestmentgradecorporatebondsoutperformedU.S.government MSCI Emerg Mkts 0.8% bondsandmortgage-backedsecurities(MBS)duetotheirlonger durationandasaresultoftighteningspreads. S&P 500 12.7% Russell 3000 12.4% Trailingone-yearreturnspaintedadifferentpicture,withU.S.large Russell 1000 12.7% companystocksoutperformingallindicesexcepttheRussellMidCap Russell MidCap 13.7% Index.Despitethestrongquarter,developedinternationalstocks Russell 2000 8.2% postednegativereturnswithemergingmarketstocksfinishingtheyear narrowlypositive.Bondreturnsoverthelast12monthswerestrong, Barclays US Agg5.7% primarilydrivenbyfallinginterestratesacrossthemajorityoftheyield Barclays US Govt5.2% curve. Barclays US TIPS3.1% Barclays MBS5.5% Barclays Corp IG6.8% 3-Month T-Bill0.0% -2.0%0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0% Source: Investment Metrics 2 The Market Environment Domestic Equity Style Index Performance As of March 31, 2015 Quarter Performance -Russell Style Series 3000 Value -0.5% Domesticstocksperformedwellthroughthefirstquarteroftheyear 3000 Index 1.8% withonlylargecapvaluestocksfinishingMarchwithnegativereturns. 3000 Growth4.0% Mixedeconomicdatacreatedvolatilityasgrowingoptimismdueto favorablecorporateearningsreports,strongemploymentdata,andoil 1000 Value-0.7% pricestabilizationwereoffsetbyfearsthattheFederalReservecould 1000 Index 1.6% speedupitstimetableforraisingshort-terminterestrates.However, 1000 Growth 3.8% modestGDP,weakdurablegoods,andweakretailsalesreports releasedduringMarchalleviatedfearsoftightermonetarypolicyinthe nearterm,pushingtheindiceshighertoendthequarter. MidCap Value2.4% MidCap Index4.0% ThereweretwonotabletrendsinU.S.domesticequitiesinthefirst MidCap Growth5.4% quarterofthe2015.First,midtosmallcapcompaniesoutperformed largecapstocksthroughtheendoftheperiod.Aconsiderableportion 2000 Value 2.0% ofthisoutperformanceisattributedtothestrengtheningoftheU.S. 2000 Index 4.3% dollarasinvestorsfavoredsmallcapstockswithlessexposureto foreigncurrenciesthanlargemultinationals.Secondly,growthstocks 2000 Growth6.6% outperformedvaluestocksthroughoutthelargecapspectrumwith -2.0%0.0%2.0%4.0%6.0%8.0% largecapvaluestocksfinishingthequarterinnegativeterritory. 1-Year Performance -Russell Style Series Onaverage,overthetrailingone-yearperiod,returnswerestrongestin 3000 Value8.9% themidcapspacewithallstylespostingdoubledigitreturns.Small 3000 Index12.4% capstrailedbothmidandlargecapnames.Similartothequarterly 3000 Growth15.8% results,growthoutperformedvaluethroughoutthesmallcapspectrum. Basedontheir20-yearaverageP/Eratios,currentvaluationsforboth 1000 Value 9.3% thevalueandcoreindicessuggesttheyweremodestlyovervalued, 1000 Index 12.7% withgrowthindicesoutsideoftheRussell1000GrowthIndexbeing 1000 Growth16.1% closetofairvalue.Midcapstocksappearedmoreovervaluedthan smallcapswithlargestocksbeingslightlyundervalued.Largecap MidCap Value11.7% growthstockswerethemostundervaluedwithacurrentP/Eratiothat MidCap Index13.7% was91.7%ofitslong-termaverage.Incontrast,theRussellMidCap MidCap Growth 15.6% ValueIndex,themostovervaluedindex,hadacurrentP/Eratiothat was124.4%ofitslong-termaverage. 2000 Value 4.4% 2000 Index8.2% 2000 Growth12.1% 0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%18.0% Source: Investment Metrics 3 The Market Environment GICS Sector Performance & (Sector Weight) As of March 31, 2015 Quarter1-Year Russell 1000 4.6% Consumer Disc (13.1%) 17.3% Withinlargecaps,sectorperformancewassomewhatlacklusteras 1.3% onlyfiveofteneconomicsectorsreturned+/-2%forthequarter. Consumer Staples (8.9%) 16.9% ConsumerDiscretionaryandHealthCarepostedthestrongestresults -2.3% Energy (7.6%) withUtilitiesandEnergydetractingthemost.Onaone-yearbasis,six oftensectorspostedreturnsinthedoubledigitswithEnergybeingthe -11.9% -0.9% Financials (17.1%) 10.7% onlysectorwithanegativereturnduetoasharpdropinoilprices 27.6% 7.4% whichbeganinthethirdquarter. Health Care (14.5%) 0.2% SmallcapperformanceforthequarterwasledbyHealthCare, Industrials (11.1%) 8.5% ConsumerDiscretionary,andInformationTechnology.OnlyEnergy 1.4% Info Technology (19.1%) andTelecomServicespostednegativereturnsforthequarter,both 17.7% returning-0.6%Overthetrailingone-yearperiod,fiveoftensectors 1.1% Materials (3.5%) 4.5% returned+10%withonlythreesectorspostinganegativeabsolute 2.0% return.Energywasthelargestoutlier,returningadisproportionate- Telecom Services (2.1%) 4.9% 39.2%overthelast12months. -5.1% Utilities (3.0%) 10.2% Sectorvaluationswerefairlymixed.OnatrailingP/Ebasis,the -15.0%-5.0%5.0%15.0%25.0% Russell1000wasrelativelycheapcomparedtotheRussell2000. Quarter1-Year Russell 2000 BasedontrailingP/E,foursectorsintheS&P500hadvaluationslower thantheir20yearaverage,onesectorisfairlyvalued,andfivesectors 5.2% Consumer Disc (14.0%) 11.2% hadvaluationsabovetheir20yearaverage.InformationTechnology 0.2% andEnergyappeartobethemostundervaluedandTelecomServices Consumer Staples (3.2%) 10.5% andUtilitieswerethemostovervaluedbasedontheirlong-term -0.6% Energy (3.4%) averageP/Eratios. -39.2% 1.6% Financials (23.6%) Byfarthemostdrasticunderperformanceofallsectorsoverthepast 9.5% yearoccurredinEnergy.FallingfromaJunehighnear$115/barrel,oil 29.7% 12.7% Health Care (15.6%) prices(BrentCrudeSpotPrice)plummetedsincethebeginningofthe 2.5% thirdquarterof2014,butpricesappeartohavestabilized,closingthe Industrials (13.6%) 1.5% quarternear$54/barrel.Thecauseofthisdrasticpricechange 5.0% Info Technology (17.9%) centeredontheexpandingworldoilsupplywithlowerforecastsofoil 12.7% consumptiongrowthduetoaweakeroutlookfortheglobaleconomy. 0.7% Materials (4.4%) -2.8% -0.6% Telecom Services (0.7%) -2.5% 1.0% Utilities (3.5%) 16.1% -40.0%-30.0%-20.0%-10.0%0.0%10.0%20.0%30.0% Source: Morningstar Direct 4 The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of March 31, 2015 Top 10 Weighted StocksTop 10 Weighted Stocks 1-Qtr1-Year1-Qtr1-Year Russell 1000WeightSectorRussell 2000WeightSector ReturnReturn ReturnReturn Apple Inc3.55%13.2%65.4%Information TechnologyQorvo Inc0.63%N/AN/AInformation Technology Exxon Mobil Corporation1.73%-7.4%-10.5%EnergyISIS Pharmaceuticals Inc0.41%3.1%47.4%Health Care Microsoft Corp1.59%-11.9%1.8%Information TechnologyPuma Biotechnology Inc0.30%24.7%126.7%Health Care Johnson & Johnson1.35%-3.1%5.2%Health CareOfficeDepot Inc0.27%7.3%122.8%Consumer Discretionary Berkshire Hathaway Inc Class B1.25%-3.9%15.5%FinancialsUltimate Software Group Inc0.27%15.8%24.1%Information Technology Wells Fargo & Co1.23%-0.1%12.4%FinancialsJetBlue Airways Corp0.26%21.4%121.5%Industrials General Electric Co1.18%-0.9%-0.8%IndustrialsBrunswick Corp0.26%0.6%14.8%Consumer Discretionary JPMorgan Chase & Co1.08%-2.6%2.4%FinancialsGraphic Packaging Holding Co0.26%7.1%43.6%Materials Pfizer Inc1.05%12.7%12.2%Health CareDexCom Inc0.26%13.2%50.7%Health Care Procter & Gamble Co1.05%-9.4%4.8%Consumer StaplesMaximus Inc0.25%21.8%49.4%Information Technology Top 10 Performing Stocks (by Quarter)Top 10 Performing Stocks (by Quarter) 1-Qtr1-Year1-Qtr1-Year Russell 1000WeightSectorRussell 2000WeightSector ReturnReturnReturnReturn Pharmacyclics Inc0.07%109.3%155.4%Health CareGordman's Stores Inc0.00%204.0%52.0%Consumer Discretionary Intercept Pharmaceuticals Inc0.02%80.8%-14.5%Health CareCellular Dynamics International Inc0.01%155.5%10.0%Health Care Freescale Semiconductor Ltd0.02%61.6%67.0%Information TechnologyCytori Therapeutics Inc0.01%141.5%-56.3%Health Care Salix Pharmaceuticals Ltd0.05%50.3%66.8%Health CareNII Holdings Inc0.00%135.1%-96.3%Telecommunication Services Hospira Inc0.07%43.4%103.1%Health CareEsperion Therapeutics Inc0.03%129.0%512.4%Health Care Orbital ATK Inc0.02%41.8%16.9%IndustrialsEgalet Corp0.00%127.2%-7.6%Health Care Exelis Inc0.02%39.6%40.5%IndustrialsAmpio Pharmaceuticals Inc0.02%119.5%18.6%Health Care Twitter Inc0.12%39.6%7.3%Information TechnologyFoundation Medicine Inc0.04%116.5%48.6%Health Care Kraft Foods Group Inc0.25%39.0%61.1%Consumer StaplesFairway Group Holdings Corp Class A0.01%114.9%-11.4%Consumer Staples Nu Skin Enterprises Inc Class A0.02%38.6%-25.3%Consumer StaplesZIOPHARM Oncology Inc0.05%112.4%135.2%Health Care Bottom 10 Performing Stocks (by Quarter)Bottom 10 Performing Stocks (by Quarter) 1-Qtr1-Year1-Qtr1-Year Russell 1000WeightSectorRussell 2000WeightSector ReturnReturnReturnReturn Weight Watchers International Inc0.00%-71.9%-66.0%Consumer DiscretionaryCorporate Resource Services Inc0.00%-98.3%-99.4%Industrials Ocwen Financial Corp0.00%-45.4%-78.9%FinancialsDoral Financial Corp0.00%-98.0%-99.1%Financials Apollo Education Group Inc Class A0.01%-44.5%-44.7%Consumer DiscretionaryBPZ Resources Inc0.00%-90.9%-99.2%Energy zulily Inc Class A0.00%-44.5%-74.1%Consumer DiscretionaryWet Seal Inc Class A0.00%-89.7%-99.5%Consumer Discretionary Tidewater Inc0.00%-40.4%-59.6%EnergyBody Central Corp0.00%-88.7%-98.9%Consumer Discretionary Stratasys Ltd0.01%-36.5%-50.2%Information TechnologyQuicksilver Resources Inc0.00%-87.6%-99.1%Energy Peabody Energy Corp0.01%-36.4%-69.3%EnergyAllied Nevada Gold Corp0.00%-87.4%-97.4%Materials SanDisk Corp0.06%-34.8%-20.6%Information TechnologyFXCM Inc0.01%-87.1%-85.4%Financials Rayonier Advanced Materials Inc0.00%-32.9%N/AMaterialsSpeed Commerce Inc0.00%-79.3%-82.5%Information Technology Cliffs Natural Resources Inc0.00%-32.6%-75.7%MaterialsCorinthian Colleges Inc0.00%-77.7%-99.0%Consumer Discretionary Source: Morningstar Direct 5 The Market Environment International and Regional Market Index Performance (Country Count) As of March 31, 2015 USDLocal Currency Quarter Performance Theyearbeganwithamodestsell-offinnon-U.S.equitiesandan 3.6% unexpected,andunusual,currencyeventastheSwissNational AC World x US (45) 9.1% Bankannouncedthedissolutionofthecountry’sthree-yearpegto 4.0% WORLD x US (22) theeuromid-January.Laterthatmonth,theEuropeanCentralBank 10.2% madethedecisiontobeginaquantitativeeasingprogramtocombat 5.0% EAFE (21) slowinggrowthprospectsthroughouttheregion.Developednon- 11.0% U.S.equitiesbegantosurge,leadingtothestrongestmonthforthe 3.6% Europe & ME (16) MSCIEAFEIndexinoverayear. 11.7% 7.7% Pacific (5) Onaregionalbasis,stocksinLatinAmericaturnedintheworst 9.5% quarterlyperformanceinbothlocalcurrencyandUSDtermsforthe 2.3% Emerging Mkt (23) secondconsecutivequarter. 4.9% 2.0% EM EMEA (10) Therewerefewernegativereturnswithindevelopedmarketsthis 5.7% quartercomparedtotherecentpast,butwithinemergingmarkets, 5.3% EM Asia (8) negativereturnsweremorecommonandgenerallymoresevere. 5.7% Denmark(+16.7%)wasthetop-performingdevelopedcountry, EM Latin Amer (5) -9.5% 1.3% whileSingapore(-1.9%),NewZealand(-1.5%),andtheUK(-1.0%) hadtheworstperformance.Interestingly,Russia(+18.6%)wasthe -10.0%-5.0%0.0%5.0%10.0%15.0% bestperformingemergingmarket,whileGreece(-29.3%)was,by USDLocal Currency 1-Year Performance far,theworstperformerasthecountryfacedpossiblebankruptcy. -0.6% AC World x US (45) 16.0% Duringthefirstquarter,USDappreciationonceagaincreateda -0.9% significantdragonreturnsforU.S.investorsinmostoverseas WORLD x US (22) 17.3% markets.TheBrazilianrealdepreciatedsignificantlyversusthe -0.5% USDduringthequarter,leadingtoalargedifferenceinreturns EAFE (21) 18.3% betweenlocalandUSDreturnsinLatinAmericanequities. -4.3% Europe & ME (16) 15.5% Onlytwosectorsendedthequarterinnegativeterritoryfor 7.7% 24.2% developednon-U.S.stocks—Energy(-4.7%)andUtilities(-4.8%). Pacific (5) Ontheoppositeendofthespectrum,HealthCare(+9.9%)and 0.8% ConsumerDiscretionary(+8.4%)ledMSCIEAFEperformance.For Emerging Mkt (23) 11.3% theMSCIEMIndex,HealthCare(+6.7%)andConsumer -11.6% EM EMEA (10) Discretionary(+4.1%)stocksperformedstronglybutwerebestedby 8.8% InformationTechnology(+8.5%)stocks.Materials(-3.1%)and 11.1% EM Asia (8) Utilities(-2.1%)stocksdetractedthemost. 14.6% -20.7% EM Latin Amer (5) SimilartoU.S.indices,growthoutperformedvalueacrossthe 2.4% board,while,ingeneral,smallcapsoutperformedlargecaps. -25.0%-20.0%-15.0%-10.0%-5.0%0.0%5.0%10.0%15.0%20.0%25.0% Source: MSCI Global Index Monitor (Returns are Gross) 6 The Market Environment U.S. Dollar International Index Attribution & Country Detail As of March 31, 2015 MSCI-EAFEMSCI-ACWIxUSQuarter1-Year MSCI -EAFESector WeightQuarter Return1-Year Return CountryWeightWeightReturnReturn Consumer Discretionary13.1%8.4%6.0% Japan22.2%15.9%10.3%12.4% Consumer Staples11.0%4.7%2.0% United Kingdom19.8%14.2%-1.0%-5.5% France9.7%7.0%4.8%-7.4% Energy5.1%-4.7%-23.4% Germany9.5%6.8%8.4%-2.0% Financials26.0%4.9%-0.5% Switzerland9.3%6.6%5.1%0.7% Australia7.3%5.2%3.1%-5.8% Health Care11.4%9.9%10.5% Spain3.6%2.6%-0.6%-9.2% Industrials12.7%6.2%-2.1% Hong Kong3.1%2.3%6.0%15.3% Information Technology4.9%7.2%7.2% Sweden3.1%2.2%5.6%-4.2% Netherlands2.7%2.0%4.9%0.5% Materials7.5%3.4%-8.0% Italy2.3%1.7%6.8%-15.2% Telecommunication Services4.7%2.5%0.6% Denmark1.7%1.2%16.7%6.9% Utilities3.6%-4.8%-7.3%Singapore1.5%1.0%-1.9%2.0% Belgium1.3%0.9%6.0%8.5% Total100.0%5.0%-0.5% Finland0.9%0.6%2.8%3.3% Norway0.6%0.5%2.4%-21.1% MSCI -ACWIxUSSector WeightQuarter Return1-Year Return Israel0.6%0.4%9.1%13.7% Consumer Discretionary11.8%7.2%5.3% Ireland0.3%0.2%3.8%-6.7% Austria0.2%0.1%3.2%-25.1% Consumer Staples9.9%3.9%1.9% Portugal0.2%0.1%7.3%-39.1% Energy6.9%-4.0%-22.7% New Zealand0.2%0.1%-1.5%-8.6% Financials27.3%2.3%0.5%Total EAFE Countries100.0%71.7%5.0%-0.5% Canada6.8%-5.9%-5.5% Health Care9.1%10.6%12.4% Total Developed Countries78.5%4.0%-0.9% Industrials11.1%4.8%-1.5% China5.0%8.1%24.3% Korea3.2%4.4%-4.9% Information Technology7.8%7.7%11.4% Taiwan2.8%4.0%13.2% Materials7.6%1.6%-11.4% South Africa1.7%3.3%4.2% Telecommunication Services5.1%1.7%1.9% India1.6%5.4%20.7% Brazil1.6%-14.6%-28.4% Utilities3.4%-4.5%-6.5% Mexico1.0%-1.9%-6.3% Total100.0%3.6%-0.6% Russia0.8%18.6%-24.9% Malaysia0.8%-1.6%-11.7% MSCI -Emerging MktSector WeightQuarter Return1-Year Return Indonesia0.6%2.5%7.5% Thailand0.5%2.5%11.4% Consumer Discretionary9.4%4.1%-1.1% Turkey0.3%-15.8%-4.3% Consumer Staples8.1%2.0%-1.4% Poland0.3%-3.0%-19.0% Energy8.0%2.3%-21.2% Philippines0.3%10.2%26.2% Chile0.3%0.1%-10.1% Financials28.5%-0.2%5.7% Qatar0.2%-3.3%-1.9% Health Care2.4%6.7%25.6% Colombia0.1%-19.1%-38.3% Industrials6.8%1.3%-1.3% United Arab Emirates0.1%-5.3%-13.8% Peru0.1%-6.0%-0.5% Information Technology19.1%8.5%15.0% Greece0.1%-29.3%-64.1% Materials7.0%-2.1%-18.0% Egypt0.1%1.5%20.2% Czech Republic0.0%-3.1%-12.1% Telecommunication Services7.4%1.5%6.3% Hungary0.0%14.0%-9.4% Utilities3.3%-3.1%-3.1% Total Emerging Countries21.5%2.3%0.8% Total100.0%2.3%0.8% Total ACWIxUS Countries100.0%3.6%-0.6% Source: MSCI Global Index Monitor (Returns are Gross in USD) 7 The Market Environment Domestic Bond Sector & Broad/Global Bond Market Performance (Duration) As of March 31, 2015 Quarter Performance AAA (4.7)1.4% Domesticbondmarketswerepositiveduringthefirstquarterof AA (5.8)1.8% 2015asbroadU.S.fixedincomeindicesmovedintandemwith A (7.3)2.2% U.S.Treasuriesthroughouttheperiod.TheBarclaysAggregate Baa (7.8) 2.3% Indexreturned+1.6%withU.S.corporatebondsdriving performancerelativetoU.S.Treasuryandmortgagebacked U.S. High Yield (4.2)2.5% securities. U.S. Treasury (5.7)1.6% U.S. Mortgage (3.5) 1.1% InvestorswererewardedfortakingonmorecreditriskwithAand U.S. Corporate IG (7.4) 2.3% Baacreditsdirectinginvestmentgradeperformanceforthequarter. HighyieldcreditoutperformedinvestmentgradewithBaandB U.S. TIPS (6.0)1.4% creditsoutperformingCaaissues.Furthermore,sinceratehikes aregenerallyassociatedwithanimprovingeconomicenvironment Aggregate (5.4) 1.6% andshouldtheFedbegintoraiserates,itisplausiblespreads Intermediate Agg (3.8) 1.3% couldtightenfurtherascompanyfundamentalsstrengthen. Global Agg x US (7.5)-4.6% Duetothedeclineininterestratesalongtheyieldcurve,longer Multiverse (6.4)-1.9% datedissuesoutperformedshortmaturityissues.Forexample,the -6.0%-4.0%-2.0%0.0%2.0%4.0% quarterlyreturnonthe30-YearTreasurywas+5.1%versusa 1-Year Performance +2.6%returnonthe10-YearTreasury. AAA (4.7) 5.3% Thedomesticbondmarketdramaticallyoutpacedtheinternational AA (5.8) 5.9% bondmarket,representedbytheBarclaysGlobalAggregateex U.S.Index,by+6.2%.Theperformancedifferentialwasheavily A (7.3)7.0% influencedbytheUSDstrengthening+6.6%,withreturnsinlocal Baa (7.8)6.9% currencyfarmoreattractiveat+2.0%.TheEuropeanCentral U.S. High Yield (4.2) 2.0% Bank’sannouncementofaquantitativeeasingprogramfueledan U.S. Treasury (5.7) 5.4% ongoingrallyinEuropeancoreandperipheralcountrybonds.In U.S. Mortgage (3.5)5.5% fact,outsideoftheU.S.,fewcentralbanksworldwidehave U.S. Corporate IG (7.4) consideredtighteningmonetarypolicies.6.8% U.S. TIPS (6.0) 3.1% Aggregate (5.4)5.7% Intermediate Agg (3.8)4.2% -10.1% Global Agg x US (7.5) Multiverse (6.4)-3.8% -12.0%-10.0%-8.0%-6.0%-4.0%-2.0%0.0%2.0%4.0%6.0%8.0%10.0% Source: Barclays Capital Live 8 The Market Environment Market Rate & Yield Curve Comparison As of March 31, 2015 1-Year Trailing Market Rates 4.00 Fed Funds RateTED Spread3-Month Libor TheyieldcurveintheU.S.continuedtoflattenduringthefirst BAA OAS10yr Treasury10yr TIPS 3.50 quarter.Sincepricesandperformancemoveintheopposite directionofyields,thelong-endofthecurvewasthebest 3.00 performingmaturitysegmentas30-yearTreasuriesreturned+5.1% duringtheperiod.Theyieldonthe10-yearTreasuryfellfrom2.17% to1.94%endingthequarterbelow2.0%.Attheshortendofthe 2.50 curve,2-yearTreasuriesfellfrom0.67%to0.56%. 2.00 Sincerisingtomoreattractiveyieldsinmid-to-late2013,theyield curvehasgraduallyflattenedandinterestrateshavedeclined, 1.50 particularlyinlonger-datedmaturities.Thisresultedinpositive returnsoverthepasttwelvemonths,especiallyininvestmentgrade 1.00 orbetter,intermediatetermorlongersecurities.Theexpectationis thatgivenstrongeconomicgrowth,lowerunemployment,theendof 0.50 theFed’sQEprogram,andbetterhousingnumbers,interestrates willsoonrise.However,theimpactofforeignpurchasesand 0.00 generallybenigninflationhasbeenanaturalheadwindtorising Mar-14Apr-14May-14Jun-14Jul-14Aug-14Sep-14Oct-14Nov-14Dec-14Jan-15Feb-15Mar-15 rates. Treasury Yield Curve 4.00 InterestratesfluctuatedconsiderablyintheU.S.duringthefirst quarterof2015.Improvingeconomicdatainitiallycausedratesto 6/30/20149/30/201412/31/20143/31/2015 3.50 riseasinvestorsspeculatedtheFederalReservecouldbegin tighteningmonetarypolicyasearlyasJune.However,basedon 3.00 JanetYellen’scommentsinlateMarch,andmixedeconomic reportsnearquarter-end,investorfearsofimminentFedpolicy 2.50 tighteninginJunewereabatedcausingratestofall.Despitethe volatility,ratesendedthequarterlowerwithbroadU.S.credit 2.00 indicespostingsolidgains. TheEuropeanCentralBankannouncedaquantitativeeasingplan 1.50 inresponsetobelow-targetinflationfigures.The60billioneuroper monthbondbuyingprogramwaslargerthaninvestorsexpected 1.00 andwasdesignedtorevitalizetheEurozoneeconomyandfight deflationarypressures. 0.50 0.00 1 mo3 mo6 mo1 yr2 yr3 yr5 yr7 yr10 yr20 yr30 yr Source: US Department of Treasury, FRED (Federal Reserve of St. Louis) 9 Page Intentionally Left Blank 10 The Market Environment The 2014 Bogdahn Client Survey Inanefforttobetterserveyourneeds,TheBogdahnGroupisPleaserateTheBogdahnGrouponthefollowingbasedonascaleof1–10 conductingitsannualclientsurvey.(1verypoorand10Excellent): Wesincerelythankyoufortakingthetimetofilloutthissurvey.1.Yourconsultingteam'slevelofunderstandingofyourPlan/Fund'sunique 1 TheinsightsgainedwillhelpTheBogdahnGroupcontinuetoneedsandobjectives. improveandbetterserveyou.Additionally,weusethe informationtoevaluateourconsultantsandidentifyareasof2.Yoursatisfactionwiththeaccuracy,levelofdetail,andtimelinessofyour 2 professionalimprovement.Thissurveyisshortandshouldtakeperformancereport. approximatelyfiveminutestocomplete.TheBogdahnGroupwill keepallinformationprovidedcompletelyconfidentialandwill3.Yourconsultingteam'sabilitytoeffectivelycommunicatetheinformationin 3 neverreleaseinformationtothirdparties.Thissurveyisfortheperformancereport. internaluseonly. 4.Yourconsultingteam'sabilitytoeffectivelycommunicateinvestment 4 Ifyoudonotreceiveanindividuale-mailfromthesurveyinsightsbeyondthoseintheperformancereport. company,pleaseparticipatebydirectingyourbrowserto https://www.surveymonkey.com/s/TBGSurvey2014.5.Effortofyourconsultingteamtoofferproactivesuggestionsand/or 5 innovativesolutionstoenhanceyourportfoliogoalsandobjectives. Ifyouhaveanyquestionsaboutthesurvey,pleasecontactTala Chinat(863)877-0323orclientsurvey@bogdahngroup.com.6.Theoutcomes/satisfactionofyourconsultant'ssuggestionsand/or 6 investmentsolutions. Thankyouagainforyourhelp.Welookforwardtoreviewingyour feedback.7.Thetimelinessandeffectivenessofyourconsultingteam'sresponsesto 7 regularinquiries.(Ourfirmpolicyistoreplytoallinquirieswithin24hours.) 8.Yoursatisfactionwithyourfeestructurerelativetothevaluedelivered. 8 9.YouroverallsatisfactionwithTheBogdahnGroup'sservices,professional 9 staff,andresources. 10.Pleaseselectyourpreferredmethods(s)toreceiveperformanceand 10 researchreports: -Emailed(PDF)inadvanceofthemeeting -Hardcopiesmailedinadvanceofthemeeting -Hardcopiesdeliveredatmeeting -Electronic“Portal”accessthroughBogdahn -Alternativeelectronicformat(CDs,FlashDrive,Tablet) Select one choice -Other______________________________________ 11 The Bogdahn Group Client Survey link will be live through June 15, 2015. Tequesta General Employees' Retirement Plan Asset Allocation by Asset Class and Manager As of March 31, 2015 Asset Allocation By Segment as ofAsset Allocation By Segment as of December 31, 2014 : $3,489,544March 31, 2015 : $3,653,654 AllocationAllocation SegmentsMarket ValueAllocationSegmentsMarket ValueAllocation Domestic Equity1,674,60448.0Domestic Equity1,721,69647.1 International Equity520,00514.9International Equity551,03515.1 Domestic Fixed Income1,076,62630.9Domestic Fixed Income1,092,33629.9 Global Fixed Income172,7214.9Global Fixed Income173,2524.7 Cash Equivalent45,5881.3Cash Equivalent115,3363.2 NONE 12 Tequesta General Employees' Retirement Plan Asset Allocation by Asset Class and Manager As of March 31, 2015 Asset Allocation By Manager as ofAsset Allocation By Manager as of December 31, 2014 : $3,489,544March 31, 2015 : $3,653,654 AllocationAllocation Market ValueAllocationMarket ValueAllocation Dana Balanced Portfolio2,786,05179.8Dana Balanced Portfolio2,846,94977.9 EuroPacific Growth Fund R6 (RERGX)520,00514.9EuroPacific Growth Fund R6 (RERGX)551,03515.1 Templeton Global Total Return R6 (FTTRX)172,7214.9Templeton Global Total Return R6 (FTTRX)173,2524.7 R&D10,7660.3R&D82,4192.3 NONE 13 Tequesta General Employees' Retirement Plan Asset Allocation vs Target Allocation As of March 31, 2015 Asset Allocation vs. Target Allocation Domestic Equity -2.9 % International Equity 0.1% Domestic Fixed Income -0.1 % Global Fixed Income -0.3 % Cash Equivalent 3.2% -10.0 %-9.0 %-6.0 %-3.0 %0.0%3.0%6.0%9.0%10.0% Allocation Differences Asset Allocation vs. Target Allocation Market Value Allocation (%)Target (%) $ Domestic Equity1,721,69647.150.0 International Equity551,03515.115.0 Domestic Fixed Income1,092,33629.930.0 Global Fixed Income173,2524.75.0 Cash Equivalent115,3363.20.0 Total Fund3,653,654100.0100.0 14 Tequesta General Employees' Retirement Plan Asset Allocation History As of March 31, 2015 Asset Allocation History by Portfolio Mar-2014Jun-2014Sep-2014Dec-2014Mar-2015 ($)%($)%($)%($)%($)% Dana Balanced Portfolio2,506,54480.152,681,23280.882,674,36679.892,786,05179.842,846,94977.92 Dana International Equity431,90613.814760.01-0.00-0.00-0.00 EuroPacific Growth Fund R6 (RERGX)-0.00462,00213.94442,55513.22520,00514.90551,03515.08 Templeton Global Total Return R6 (FTTRX)142,0084.54150,4404.54149,3204.46172,7214.95173,2524.74 R&D46,8461.5020,9420.6381,4642.4310,7660.3182,4192.26 Total Fund3,127,304100.003,315,091100.003,347,705100.003,489,544100.003,653,654100.00 Asset Allocation History by Asset Class 100.0 80.0 60.0 40.0 20.0 0.0 8/072/088/082/098/092/108/102/118/112/128/122/138/132/148/143/15 Domestic EquityInternational EquityDomestic Fixed IncomeGlobal Fixed IncomeCash Equivalent 15 Page Intentionally Left Blank 16 Tequesta General Employees' Retirement Plan Financial Reconciliation As of March 31, 2015 Financial Reconciliation: Quarter to Date Market ValueNetManagementOtherApprec./Market Value ContributionsDistributionsIncome 01/01/2015TransfersFeesExpensesDeprec.03/31/2015 Dana Balanced Portfolio2,786,0513,837---3,837-40817,13444,1712,846,949 EuroPacific Growth Fund R6 (RERGX)520,005------31,030551,035 Templeton Global Total Return R6 (FTTRX)172,721-----2,048-1,518173,252 R&D Account10,766-3,83792,337-2,133--14,7162-82,419 Total Fund3,489,544-92,337-2,133-3,837-15,12419,18473,6843,653,654 Financial Reconciliation: Fiscal Year to Date Market ValueNetManagementOtherApprec./Market Value ContributionsDistributionsIncome 10/01/2014TransfersFeesExpensesDeprec.03/31/2015 Dana Balanced Portfolio2,674,3667,489---7,489-97434,102139,4552,846,949 EuroPacific Growth Fund R6 (RERGX)442,55584,563----8,38815,529551,035 Templeton Global Total Return R6 (FTTRX)149,32026,073----10,032-12,173173,252 R&D Account81,464-118,125149,413-4,156--26,1813-82,419 Total Fund3,347,705-149,413-4,156-7,489-27,15552,524142,8113,653,654 17 Tequesta General Employees' Retirement Plan Comparative Performance: Trailing Returns As of March 31, 2015 Comparative Performance Inception QTRFYTD1 YR3 YR4 YR5 YRInception Date Total Fund (Gross)2.63(46)5.75(35)9.19(20)10.97(22)9.67(18)10.48(19)6.34(21)11/01/2000 Total Fund Policy1.47(93)3.65(92)7.47(63)9.80(63)8.96(38)9.40(58)5.39(86) All Public Plans-Total Fund Median2.545.338.0610.218.539.655.92 Total Fund (Net)2.525.538.6910.379.129.926.0411/01/2000 Equity Strategies Dana Core Equity2.66(35)9.06(25)14.95(33)18.46(16)15.82(24)16.64(14)9.32(32)11/01/2005 S&P 500 Index0.95(74)5.93(68)12.73(60)16.11(62)14.17(59)14.47(61)8.16(80) IM U.S. Large Cap Core Equity (SA+CF) Median1.827.0213.3516.6414.5514.888.79 EuroPacific Growth Fund R6 (RERGX)5.97(13)4.24(12)N/AN/AN/AN/A0.80(15)06/01/2014 MSCI AC World ex USA3.59(81)-0.36(76)-0.57(31)6.89(78)3.30(88)5.29(65)-3.91(46) IM International Large Cap Core Equity (MF) Median5.060.78-1.348.264.595.58-4.15 Fixed Income Strategies Dana Fixed Income1.522.834.413.333.974.375.0011/01/2005 (39)(17)(20)(22)(28)(22)(44) Barclays Intermediate Aggregate Index1.322.544.242.413.343.624.67 (81)(31)(30)(76)(72)(74)(80) IM U.S. Intermediate Duration (SA+CF) Median1.472.403.872.753.603.914.93 Templeton Global Total Return R6 (FTTRX)0.31(43)-1.32(50)0.57(42)N/AN/AN/A1.65(45)11/01/2013 Global Fixed Income Index-0.02(52)-1.63(57)-1.25(54)2.67(39)3.92(28)5.22(19)0.56(51) IM Global Fixed Income (MF) Median0.06-1.34-0.911.712.232.960.57 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Dana's inception date is 10-13-2005. Dana Core Equity contains international prior to 7/1/2009. 18 Tequesta General Employees' Retirement Plan Comparative Performance: Fiscal Year Returns As of March 31, 2015 Comparative Performance Oct-2013Oct-2012Oct-2011Oct-2010Oct-2009Oct-2008Oct-2007 FYTDToToToToToToTo Sep-2014Sep-2013Sep-2012Sep-2011Sep-2010Sep-2009Sep-2008 Total Fund (Gross)5.7511.9212.0918.891.6210.011.76-10.10 (35)(14)(59)(30)(24)(47)(48)(8) Total Fund Policy3.6511.5411.1918.061.289.400.48-12.46 (92)(20)(74)(47)(30)(65)(65)(37) All Public Plans-Total Fund Median5.3310.1012.5317.890.329.901.52-13.57 Total Fund (Net)5.5311.3511.5018.291.089.431.64-10.34 Equity Strategies Dana Core Equity9.06(25)21.51(21)21.69(37)31.26(28)2.43(33)11.17(27)-8.19(76)-19.68(44) S&P 500 Index5.93(68)19.73(44)19.34(66)30.20(45)1.14(50)10.16(40)-6.91(63)-21.98(68) IM U.S. Large Cap Core Equity (SA+CF) Median7.0219.2520.7529.771.149.45-5.82-20.44 Dana Int'l PortfolioN/AN/A18.47(83)18.71(27)-12.18(84)5.74(57)N/AN/A MSCI AC World ex USA-0.36(82)5.22(57)16.98(90)15.04(79)-10.42(66)8.00(25)6.43(23)-29.97(48) IM International Large Cap Core Equity (SA+CF) Median1.726.1222.6617.30-9.306.153.32-30.18 EuroPacific Growth Fund R6 (RERGX)4.24(12)N/AN/AN/AN/AN/AN/AN/A MSCI AC World ex USA-0.36(76)5.22(27)16.98(80)15.04(58)-10.42(27)8.00(6)6.43(10)-29.97(62) IM International Large Cap Core Equity (MF) Median0.783.7421.8315.48-11.063.580.98-29.22 Fixed Income Strategies Dana Fixed Income2.832.980.216.802.898.739.244.47 (17)(45)(27)(22)(77)(32)(83)(32) Barclays Intermediate Aggregate Index2.542.74-0.714.314.227.529.694.16 (31)(59)(78)(84)(21)(77)(81)(35) IM U.S. Intermediate Duration (SA+CF) Median2.402.87-0.275.583.608.2711.483.24 Templeton Global Total Return R6 (FTTRX)-1.32(50)N/AN/AN/AN/AN/AN/AN/A Global Fixed Income Index-1.63(57)4.65(38)-1.58(52)14.19(3)2.52(39)12.95(11)19.60(16)-2.93(70) IM Global Fixed Income (MF) Median-1.343.53-1.527.191.617.8213.86-1.53 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Dana's inception date is 10-13-2005. Dana Core Equity contains international prior to 7/1/2009. 19 Tequesta General Employees' Retirement Plan Total Fund Performance Review As of March 31, 2015 Plan Sponsor Peer Group Analysis - All Public Plans-Total Fund 16.0028.00 24.00 14.00 20.00 12.00 16.00 10.00 12.00 n r 8.00 u t e R 8.00 6.00 4.00 4.00 0.00 2.00 -4.00 0.00 -8.00 -2.00-12.00 Oct-2013Oct-2012Oct-2011Oct-2010Oct-2009Oct-2008 ToToToToToTo QTRFYTD1 YR2 YR3 YR4 YR5 YRSep-2014Sep-2013Sep-2012Sep-2011Sep-2010Sep-2009 Total Fund (Gross)2.63(46)5.75(35)9.19(20)11.47(25)10.97(22)9.67(18)10.48(19)Total Fund (Gross)11.92(14)12.09(59)18.89(30)1.62(24)10.01(47)1.76(48) Total Fund Policy1.47(93)3.65(92)7.47(63)10.06(64)9.80(63)8.96(38)9.40(58)Total Fund Policy11.54(20)11.19(74)18.06(47)1.28(30)9.40(65)0.48(65) Median2.545.338.0610.3910.218.539.65Median10.1012.5317.890.329.901.52 Comparative Performance 1 Qtr1 Qtr1 Qtr1 Qtr1 Qtr1 Qtr EndingEndingEndingEndingEndingEnding Dec-2014Sep-2014Jun-2014Mar-2014Dec-2013Sep-2013 Total Fund (Gross)3.05-0.804.082.106.183.83 (20)(33)(22)(23)(28)(92) Total Fund Policy2.15(55)-0.36(15)4.07(23)1.56(64)5.91(38)4.31(78) All Public Plans-Total Fund Median2.27-1.133.631.715.604.93 NONE 20 Tequesta General Employees' Retirement Plan Total Fund Performance Review As of March 31, 2015 3 Yr Rolling Under/Over Performance - 5 Years3 Yr Rolling Percentile Ranking - 5 Years 24.00.0 Over Performance 25.0 16.0 50.0 8.0 75.0 0.0 Under Performance 100.0 -8.0 6/1012/106/1112/116/1212/126/1312/136/143/15 -8.00.08.016.024.0 Total Fund Policy (%) 5-2525-MedianMedian-7575-95 Total Period CountCountCountCount Over PerformanceUnder Performance Total Fund (Gross)2012(60%)6(30%)0(0%)2(10%) Earliest DateLatest Date Total Fund Policy200(0%)9(45%)10(50%)1(5%) Peer Group Scattergram - 3 YearsPeer Group Scattergram - 5 Years 11.2010.80 10.44 10.80 10.08 10.40 9.72 10.00 9.36 9.00 5.765.845.926.006.086.166.246.326.407.67.88.08.28.48.68.89.0 Risk (Standard Deviation %)Risk (Standard Deviation %) StandardStandard ReturnReturn DeviationDeviation Total Fund (Gross)10.975.85Total Fund (Gross)10.488.08 Total Fund Policy9.806.09Total Fund Policy9.407.95 Median10.226.26Median9.658.70 Historical Statistics - 3 Years UpDown TrackingInformationSharpeDownside MarketMarketAlphaBeta ErrorRatioRatioRisk CaptureCapture Total Fund (Gross)1.13103.1988.971.600.931.810.943.25 Total Fund Policy0.00100.00100.000.00N/A1.561.003.30 90 Day U.S. Treasury Bill6.100.25-0.350.06-1.56N/A0.000.00 Historical Statistics - 5 Years UpDown TrackingInformationSharpeDownside MarketMarketAlphaBeta ErrorRatioRatioRisk CaptureCapture Total Fund (Gross)1.20104.8497.210.960.831.271.014.59 Total Fund Policy0.00100.00100.000.00N/A1.161.004.44 90 Day U.S. Treasury Bill7.950.29-0.400.08-1.16N/A0.000.00 NONE 21 Tequesta General Employees' Retirement Plan Dana Core Equity Performance Review As of March 31, 2015 Peer Group Analysis - IM U.S. Large Cap Core Equity (SA+CF) 28.0052.00 44.00 24.00 36.00 20.00 28.00 16.00 20.00 nn rr 12.00 uu tt ee RR 12.00 8.00 4.00 4.00 -4.00 0.00 -12.00 -4.00 -20.00 -8.00-28.00 Oct-2013Oct-2012Oct-2011Oct-2010Oct-2009Oct-2008 ToToToToToTo QTRFYTD1 YR2 YR3 YR4 YR5 YRSep-2014Sep-2013Sep-2012Sep-2011Sep-2010Sep-2009 Dana Core Equity2.66(35)9.06(25)14.95(33)20.22(21)18.46(16)15.82(24)16.64(14)Dana Core Equity21.51(21)21.69(37)31.26(28)2.43(33)11.17(27)-8.19(76) S&P 500 Index0.955.9312.7317.2116.1114.1714.47S&P 500 Index19.7319.3430.201.1410.16-6.91 (74)(68)(60)(65)(62)(59)(61)(44)(66)(45)(50)(40)(63) Median1.827.0213.3517.9416.6414.5514.88Median19.2520.7529.771.149.45-5.82 Comparative Performance 1 Qtr1 Qtr1 Qtr1 Qtr1 Qtr1 Qtr EndingEndingEndingEndingEndingEnding Dec-2014Sep-2014Jun-2014Mar-2014Dec-2013Sep-2013 Dana Core Equity6.23-0.425.854.0010.855.37 (20)(83)(14)(6)(38)(64) S&P 500 Index4.93(56)1.13(43)5.23(31)1.81(63)10.51(48)5.24(69) IM U.S. Large Cap Core Equity (SA+CF) Median5.110.924.812.0610.435.94 NONE 22 Tequesta General Employees' Retirement Plan Dana Core Equity Performance Review As of March 31, 2015 3 Yr Rolling Under/Over Performance - 5 Years3 Yr Rolling Percentile Ranking - 5 Years 45.00.0 Over Performance 30.0 25.0 15.0 50.0 0.0 75.0 -15.0 Under Performance 100.0 -30.0 6/1012/106/1112/116/1212/126/1312/136/143/15 -30.0-15.00.015.030.045.0 S&P 500 Index (%) 5-2525-MedianMedian-7575-95 Total Period CountCountCountCount Over PerformanceUnder Performance Dana Core Equity208(40%)8(40%)4(20%)0(0%) Earliest DateLatest Date S&P 500 Index200(0%)8(40%)12(60%)0(0%) Peer Group Scattergram - 3 YearsPeer Group Scattergram - 5 Years 19.5017.25 18.7216.50 17.9415.75 17.1615.00 16.3814.25 15.6013.50 7.707.807.908.008.108.208.308.408.5013.7714.0414.3114.5814.8515.1215.39 Risk (Standard Deviation %)Risk (Standard Deviation %) StandardStandard ReturnReturn DeviationDeviation Dana Core Equity18.468.16Dana Core Equity16.6415.18 S&P 500 Index16.117.82S&P 500 Index14.4714.08 Median16.648.34Median14.8814.67 Historical Statistics - 3 Years UpDown TrackingInformationSharpeDownside MarketMarketAlphaBeta ErrorRatioRatioRisk CaptureCapture Dana Core Equity1.99104.6088.152.491.011.860.974.87 S&P 500 Index0.00100.00100.000.00N/A1.631.005.08 90 Day U.S. Treasury Bill9.460.16-0.230.06-1.63N/A0.000.00 Historical Statistics - 5 Years UpDown TrackingInformationSharpeDownside MarketMarketAlphaBeta ErrorRatioRatioRisk CaptureCapture Dana Core Equity2.13106.0296.871.810.911.241.017.58 S&P 500 Index0.00100.00100.000.00N/A1.111.007.43 90 Day U.S. Treasury Bill12.860.20-0.200.08-1.11N/A0.000.00 NONE 23 Page Intentionally Left Blank 24 Tequesta General Employees' Retirement Plan Europacific Growth Fund R6 (RERGX) Performance Review As of March 31, 2015 Peer Group Analysis - IM International Large Cap Core Equity (MF) 17.0036.00 14.00 28.00 11.00 20.00 8.00 12.00 nn rr 5.00 uu tt ee RR 4.00 2.00 -4.00 -1.00 -12.00 -4.00 -20.00 -7.00 -10.00-28.00 Oct-2013Oct-2012Oct-2011Oct-2010Oct-2009Oct-2008 ToToToToToTo QTRFYTD1 YR2 YR3 YR4 YR5 YRSep-2014Sep-2013Sep-2012Sep-2011Sep-2010Sep-2009 EuroPacific Growth5.97(13)4.24(12)N/AN/AN/AN/AN/AEuroPacific GrowthN/AN/AN/AN/AN/AN/A MSCI AC World ex USA3.59-0.36-0.575.916.893.305.29MSCI AC World ex USA5.228.006.43 (81)(76)(31)(69)(78)(88)(65)(27)16.98(80)15.04(58)-10.42(27)(6)(10) Median5.060.78-1.347.198.264.595.58Median3.7421.8315.48-11.063.580.98 Comparative Performance 1 Qtr1 Qtr1 Qtr1 Qtr1 Qtr1 Qtr EndingEndingEndingEndingEndingEnding Dec-2014Sep-2014Jun-2014Mar-2014Dec-2013Sep-2013 EuroPacific Growth-1.63-4.21N/AN/AN/AN/A (9)(12) MSCI AC World ex USA-3.81(50)-5.19(48)5.25(23)0.61(23)4.81(78)10.17(64) IM International Large Cap Core Equity (MF) Median-3.82-5.264.050.205.5110.47 NONE 25 Tequesta General Employees' Retirement Plan Dana Fixed Portfolio Performance Review As of March 31, 2015 Peer Group Analysis - IM U.S. Intermediate Duration (SA+CF) 7.7320.00 6.92 17.00 6.11 14.00 5.30 11.00 4.49 nn rr 8.00 uu tt ee RR 3.68 5.00 2.87 2.00 2.06 -1.00 1.25 -4.00 0.44 -0.37-7.00 Oct-2013Oct-2012Oct-2011Oct-2010Oct-2009Oct-2008 ToToToToToTo QTRFYTD1 YR2 YR3 YR4 YR5 YRSep-2014Sep-2013Sep-2012Sep-2011Sep-2010Sep-2009 Dana Fixed Portfolio1.52(39)2.83(17)4.41(20)2.58(21)3.33(22)3.97(28)4.37(22)Dana Fixed Portfolio2.98(45)0.21(27)6.80(22)2.89(77)8.73(32)9.24(83) Barclays Interm Agg Index1.322.544.242.102.413.343.62Barclays Interm Agg Index2.74-0.714.314.227.529.69 (81)(31)(30)(49)(76)(72)(74)(59)(78)(84)(21)(77)(81) Median1.472.403.872.102.753.603.91Median2.87-0.275.583.608.2711.48 Comparative Performance 1 Qtr1 Qtr1 Qtr1 Qtr1 Qtr1 Qtr EndingEndingEndingEndingEndingEnding Dec-2014Sep-2014Jun-2014Mar-2014Dec-2013Sep-2013 Dana Fixed Portfolio1.290.041.501.400.010.95 (10)(38)(39)(31)(75)(15) Barclays Intermediate Aggregate Index1.20(18)0.03(39)1.62(27)1.20(52)-0.14(93)0.76(42) IM U.S. Intermediate Duration (SA+CF) Median0.910.001.401.220.210.72 NONE 26 Tequesta General Employees' Retirement Plan Dana Fixed Portfolio Performance Review As of March 31, 2015 3 Yr Rolling Under/Over Performance - 5 Years3 Yr Rolling Percentile Ranking - 5 Years 10.00.0 Over Performance 8.0 25.0 6.0 50.0 4.0 75.0 2.0 Under Performance 100.0 0.0 6/1012/106/1112/116/1212/126/1312/136/143/15 0.02.04.06.08.010.0 Barclays Intermediate Aggregate Index (%) 5-2525-MedianMedian-7575-95 Total Period CountCountCountCount Over PerformanceUnder Performance Dana Fixed Portfolio204(20%)7(35%)6(30%)3(15%) Earliest DateLatest Date Barclays Interm Agg Index200(0%)0(0%)10(50%)10(50%) Peer Group Scattergram - 3 YearsPeer Group Scattergram - 5 Years 3.634.59 3.304.32 2.974.05 2.643.78 2.313.51 1.983.24 1.801.841.881.921.962.002.042.082.102.152.202.252.302.352.402.45 Risk (Standard Deviation %)Risk (Standard Deviation %) StandardStandard ReturnReturn DeviationDeviation Dana Fixed Portfolio3.332.04Dana Fixed Portfolio4.372.40 Barclays Interm Agg Index2.411.86Barclays Interm Agg Index3.622.16 Median2.751.92Median3.912.29 Historical Statistics - 3 Years UpDown TrackingInformationSharpeDownside MarketMarketAlphaBeta ErrorRatioRatioRisk CaptureCapture Dana Fixed Portfolio0.69109.9275.520.971.301.530.971.08 Barclays Intermediate Aggregate Index0.00100.00100.000.00N/A1.131.001.18 90 Day U.S. Treasury Bill2.070.95-0.750.05-1.13N/A0.000.00 Historical Statistics - 5 Years UpDown TrackingInformationSharpeDownside MarketMarketAlphaBeta ErrorRatioRatioRisk CaptureCapture Dana Fixed Portfolio1.35118.49113.700.550.541.641.051.23 Barclays Intermediate Aggregate Index0.00100.00100.000.00N/A1.671.001.04 90 Day U.S. Treasury Bill2.091.17-1.180.07-1.67N/A0.000.00 NONE 27 Page Intentionally Left Blank 28 Tequesta General Employees' Retirement Plan Templeton Global Total Return R6 (FTTRX) Performance Review As of March 31, 2015 Peer Group Analysis - IM Global Fixed Income (MF) 11.0030.00 25.00 8.00 20.00 5.00 15.00 2.00 nn rr 10.00 uu tt ee RR 5.00 -1.00 0.00 -4.00 -5.00 -7.00 -10.00 -10.00-15.00 Oct-2013Oct-2012Oct-2011Oct-2010Oct-2009Oct-2008 ToToToToToTo QTRFYTD1 YR2 YR3 YR4 YR5 YRSep-2014Sep-2013Sep-2012Sep-2011Sep-2010Sep-2009 Templeton0.31(43)-1.32(50)0.57(42)N/AN/AN/AN/ATempletonN/AN/AN/AN/AN/AN/A Global FI Index-0.02-1.63-1.250.702.673.925.22Global FI Index4.65-1.5814.192.5212.9519.60 (52)(57)(54)(43)(39)(28)(19)(38)(52)(3)(39)(11)(16) Median0.06-1.34-0.910.181.712.232.96Median3.53-1.527.191.617.8213.86 Comparative Performance 1 Qtr1 Qtr1 Qtr1 Qtr1 Qtr1 Qtr EndingEndingEndingEndingEndingEnding Dec-2014Sep-2014Jun-2014Mar-2014Dec-2013Sep-2013 Templeton-1.62-0.742.670.47N/AN/A (72)(32)(41)(98) Global Fixed Income Index-1.61(72)-3.13(79)3.62(11)3.23(16)0.99(36)2.29(10) IM Global Fixed Income (MF) Median-1.06-1.712.392.420.641.00 NONE 29 Tequesta General Employees' Retirement Plan Benchmark History As of March 31, 2015 Total Fund PolicyTotal Fixed Policy Allocation MandateWeight (%)Allocation MandateWeight (%) Jan-1978Feb-2004 Citigroup 3 Month T-Bill Index100.00Barclays U.S. Gov't/Credit100.00 Jan-2004Oct-2005 S&P 500 Index60.00Barclays Intermediate U.S. Gov/Credit Index100.00 Citigroup 3 Month T-Bill Index20.00 Jul-2012 Barclays U.S. Gov't/Credit20.00 Barclays Intermediate Aggregate Index100.00 Oct-2005 Sep-2013 S&P 500 Index60.00 Barclays Intermediate Aggregate Index86.00 Barclays Intermediate U.S. Gov/Credit Index40.00 Global Fixed Income Index14.00 Dec-2009 S&P 500 Index50.00 Barclays Intermediate U.S. Gov/Credit Index40.00 MSCI EAFE Index10.00 Jul-2012 S&P 500 Index50.00 Barclays Intermediate Aggregate Index40.00 MSCI AC World ex USA10.00 Global Fixed Income Index Sep-2013 S&P 500 Index50.00 Allocation MandateWeight (%) Barclays Intermediate Aggregate Index30.00 Jan-1994 MSCI AC World ex USA15.00 JPM EMBI+33.33 Global Fixed Income Index5.00 Barclays US Corp: High Yield33.33 Citigroup Non-U.S. World Government Bond33.34 30 Plan Sponsor TF Asset Allocation Tequesta General Employees As of March 31, 2015 Plan Sponsor TF Asset Allocation vs. All Public Plans-Total Fund 76.0 68.0 60.0 52.0 44.0 36.0 28.0 20.0 12.0 4.0 -4.0 -12.0 US EquityIntl. EquityUS Fixed IncomeIntl. Fixed IncomeAlternative Inv.Real EstateCash Tequesta General Employees47.1215.0829.904.740.000.003.16 (59)(28)(49)(42)(10) 5th Percentile60.5322.4041.499.3733.7510.703.72 1st Quartile53.0115.3034.184.9612.728.991.99 Median49.0314.0629.454.629.765.381.06 3rd Quartile44.3911.8224.984.373.134.370.60 95th Percentile28.948.6416.153.940.722.570.03 Parentheses contain percentile rankings. Calculation based on <Periodicity> periodicity. 31 TequestaGeneralEmployees'PensionFund ComplianceChecklist AsofMarch31,2015 Total Fund Compliance: YesNoN/A 1. The Total Plan return equaled or exceeded the 7.5% actuarial earnings assumption over the trailing three year period. 2. The Total Plan return equaled or exceeded the 7.5% actuarial earnings assumption over the trailing five year period. 3. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three year period. 4. The Total Plan return equaled or exceeded the total plan benchmark over the trailing five year period. 5. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three year period. 6. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing five year period. YesNoN/A Equity Compliance: 1. Total Equity return equaled or exceeded the benchmark over the trailing three year period. 2. Total Equity return equaled or exceeded the benchmark over the trailing five year period. 3. Total Equity investments do not exceed 70% of the market value of Plan assets. 4. Total market value of foreign securities do not exceed 25% of the market value of Plan assets. YesNoN/A Fixed Income Compliance: 1. Total Fixed Income return equaled or exceeded the benchmark over the trailing three year period. 2. Total Fixed Income return equaled or exceeded the benchmark over the trailing five year period. 3. 95% of the fixed income investments have a minimum rating of investment grade or higher. Dana DomesticEuropacific (RERGX)Dana FixedTempleton (FTTRX) Manager Compliance: YesNoN/AYesNoN/AYesNoN/AYesNoN/A 1. Manager outperformed the index over the trailing three year period. 2. Manager outperformed the index over the trailing five year period. 3. Manager has had less than 4 consecutive quarters of underperformance. 4. Manager ranked within the top 40th percentile over the trailing three year period. 5. Manager ranked within the top 40th percentile over the trailing five year period. 6. Manager three year down market capture ratio is less than the index. 7. Manager five year down market capture ratio is less than the index. 32 Writeup Disclosures As of March 31, 2015 Neither The Bogdahn Group, nor any covered associates have made political contributions to any official associated with the Tequesta General Employees' Retirement Plan in excess of the permitted amount. 33 Report Statistics Definitions and Descriptions Arithmetic difference between the manager’s performance and the designated benchmark return over a specified time period. Active Return - A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta. It determines the portfolio's Alpha - non-systemic return, or its historical performance not explained by movements of the market. A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of the portfolio's systematic risk. Beta - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. Higher consistency indicates the manager has contributed more to the Consistency - product’s performance. The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance Down Market Capture - A measure similar to standard deviation that utilizes only the negative movements of the return series. It is calculated by taking the standard deviation of the negative Downside Risk - quarterly set of returns. A higher factor is indicative of a riskier product. Arithmetic difference between the manager’s performance and the risk-free return over a specified time period. Excess Return - A measure of the standard deviation of a portfolio's performance relative to the risk free return. Excess Risk - This calculates the value-added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the Information Ratio - Information Ratio, the more the manager has added value to the portfolio. The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark. A high R-Squared means the portfolio's performance has R-Squared - historically moved in the same direction as the appropriate benchmark. Compounded rate of return for the period. Return - Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is an absolute rate of return per unit of risk. A Sharpe Ratio - higher value demonstrates better historical risk-adjusted performance. A statistical measure of the range of a portfolio's performance. It represents the variability of returns around the average return over a specified time period. Standard Deviation - This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark. Tracking Error - Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation. It is calculated by taking the excess rate of return above the risk free Treynor Ratio - rate divided by beta to derive the absolute rate of return per unit of risk. A higher value indicates a product has achieved better historical risk-adjusted performance. The ratio of average portfolio performance over the designated benchmark during periods of positive returns. A higher value indicates better product performance. Up Market Capture - 34 Disclosures The Bogdahn Group compiled this report for the sole use of the client for which it was prepared. The Bogdahn Group is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. The Bogdahn group uses the results from this evaluation to make observations and recommendations to the client. The Bogdahn Group uses time-weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. The Bogdahn Group analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides The Bogdahn Group with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides The Bogdahn Group with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause The Bogdahn Group to believe that the information presented is significantly misstated. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting, or investment management services. Additional information included in this document may contain data provided by from index databases, public economic sources and the managers themselves. This document may contain data provided by Barclays. Barclays Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor’s. Nothing contained within any document, advertisement or presentation from S&P Indices constitutes an offer of services in jurisdictions where S&P Indices does not have the necessary licenses. All information provided by S&P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI, Inc. Copyright MSCI, 2012. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. 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Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results. 35 THE BOGDAHN GRoup sinrplifj�ing your investment and fiduciarl, decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Chicago I Cleveland I Milwaukee Pittsburgh