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Home My WebLink AboutDocumentation_Pension Public Safety_Tab 03_11/06/2006BQGDA~-IN CONSULTING LAC. simplifying your investment decisions Village of Tequesta PUBLIC SAFETY OFFICERS' PENSION PLAN September, 2006 www.bogdahnconsulting. com 340 West Central Avenue Suite 300 • Winter Haven, Florida 33880 Telephone (863) 293-8289 • Facsimile (863) 292-8717 Performance Evaluation for Village of Tequesta Public Safety Officers' Pension Trust Fund Rockwood Capital Advisors For the Period Ending September 30, 2006 Presented by: i3ogdahn Consulting, LLC Village of Tequesta Public Safety Officers' Pension Trust Fund 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 if 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 through 10 years if available, as well as since the inception date. A positive difference indicates the fund has exceeded the 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 Public Safety Officers' Pension Trust Fund Executive Summary Account Reconciliation 09/30/2006 12006 10/31 /2000 Qtr YTD ~~ Incept ......................... S~gin:ci%ng: Value :: :::: ................ :::::::: 3;39::: ' ..............:... ::: 2;910:::::;::: ......... :: ~:;~79: filet Flows ::::::: :::::: ::::: >:::1;99 :::::: :::::::8:3:::::1::: ::1:;:482:. irmrestr~i:ent GfL : 17... .::...15:1:« 284 . 1=riding: Value.:......: :: 3,345: 3;3.45..:. 3;:34 Investment Policy Index Weight i ramng Keturns tnrougn 5epter~gr`.~', ZUO6 10/31 /2000 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept ~~t~id 4.07 x.75 .. ... 5.89. 5:77 3 72 .18 f'oficy ~ 53 x.72 . : 8.11. 90.00 6 D6 :: 3.05 QitF 3:4.6 2:97 =;2.22: . 4.23 -2 3~4 1.8:7:: Calendar Year Returns 09/30/2006 2006 Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997 t^~tnd 3,4:1 _ 5.:C3Q: '1.:6Q 1U;$9 1 Q.73 -10.75 -3:65:. . Pohcy ~t.81 5 9ff; 3.9:1 7;81. 17.13 ,: : 8.74 -3.07 Riff .. -1.2a -fl 98 5 5~ 3::28 =6:40 X2.01 0 58 Returns in Up Markets 10/31 /2000 3 Yr 4 Yr 5 Yr Incept f=crsid 10.8'. 9.i~ :: ... ~..4 9:9: Policy 12 1 1.4;5 ~4 5 14 5 ttatio 89 6.. :::.:86:9. 84:6.... 68.8 Inception date is October 31, 2000 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Rockwood assumed account on April 4th 2005 Returns in Down Markets 10/31 /2000 3 Yr 4 Yr 5 Yr Incept Irur~d X5.8 5:8 $.3 -12.3: Pofi~r ~2 2 3:3 X11 3.:: X141 Ratio 261:8 ~ 74;5 73:8 87.0:: 2 Village of Tequesta Public Safety Officers' Pension Plan Asset Allocation T~gh September 30, 2006 ~~ At Market Cash &Equiv 9% Equity 55% At COSt Equity 50% Fixed Income 36% Fixed Income 40% 3 Cash &Equiv 10% Village of Tequesta Public Safety Officers' Pension Trust Fund 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. All rates of return are annualized if the period for which theyare calculated exceeds one year. 4 Village of Tequesta Public Safety Officers' Pension Trust Fund Universe Comparisons 55% Lg Cap Core, 35% Hg Quality Bd, 10% Cash 1 ralling Keturns through 5eptemb Luuti 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr ~u d . . Return 2.44 5.00 4.07 4.75 5.89 5.77 3.72 -tile 66 61 89 94 87 99 89 ....Icy Return 3.86 5.98 7.53 7.72 8.11 10.00 6.06 -tile 25 34 36 47 48 38 33 ~~ r : ::::::::::::::::::::::::::::::::: :::::::::::::::: aJnl . e se ............................................... :::::::::::::::::::::::::: :::.:.;:>:::::::::>:::::::::::::::::::::::::::::::::: ................ . 5th %-tile 4.73 7.67 8.97 9.41 9.88 11.33 7.42 5.98 6.23 6.66 25th %-tile 3.86 6.19 7.78 8.32 8.82 10.43 6.39 3.53 4.56 5.54 50th %-tile 3.32 5.66 7.26 7.64 8.07 9.74 5.66 2.63 3.74 4.88 75th %-tile 1.67 3.63 5.43 6.63 6.99 8.58 4.76 0.89 2.85 4.19 95th %-tile -2.29 -1.40 1.59 4.42 4.64 6.36 3.09 -1.81 1.40 2.76 Calendar Year Returns Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 ~uiid ::::::::::::: >::::::::::::::: :::: ::: :::::::::::::::: :..:.: _ .: .... ............................................................................................................................................ Return 3.41 5.00 -1.60 10.89 10.73 -10.75 -3.65 -tile 76 61 100 1 100 75 53 Pci[Icy Return 4.61 5.98 3.91 7.61 17.13 -8.74 -3.07 -tile 29 34 47 31 38 34 39 ............................................................................................................................................ Un ..e se ............................................................................................................................................ ........................................................................................................................................... 5th %-tile 5.06 7.67 6.84 9.51 19.97 -5.87 1.25 9.41 17.93 21.51 25th %-tile 4.65 6.19 5.01 7.89 17.97 -8.22 -1.99 3.92 13.35 18.87 50th %-tile 4.20 5.66 3.82 6.88 16.67 -9.42 -3.54 -0.35 11.32 16.76 75th %-tile 3.41 3.63 3.14 5.59 15.04 -10.81 -4.81 -2.02 8.69 13.00 95th %-tile 1.25 -1.40 1.46 4.08 12.76 -12.29 -7.54 -4.26 3.67 10.12 Returns are in percent. "%-tile" is the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is October 31, 2000 to September 30, 2006 Rockwood assumed account on April 4th 2005 n Village of Tequesta Public Safety Officers' Fixed Income Executive Summary Account Reconciliation 09/30/2006 2006 10/31 /2000 Qtr YTD Incept #3egin:ria:rig:V~lue:: ..................... ..................... .................... :: ::::'k177:: ..................... ..................... 11f4: ::::;::`:::::::466: ........................... .......................... . ..................... Net:Flows :::::::: : ..................... ..................... ::::::::::::::::: ~ :::: ............ ........... :::::::::20::: ............... ............... :::::: >:;539:: Iruestrieiif:~fL.;: :: :: :::::::3:~ : ~ : 29: 209 ~radirii~ Value :: ::::>::: :x,213 1;213:: ::: ::1: ~3 3 ,..... I railing Keturns, through September 30, 2006 10/31 /2000 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept and 3.29.:. .:::::: :% 1.?~ . :..> ....2.U9... ...2.73... . ..3.75 ..................................... ::::::::: :: :::::::::::::: ::::::~>:::: ;::%::::::::::::::::::::::'> ............................................5.40,. p • . : : olicy .. :: :: ::.::::: .......x..32._.. ::::. ..2.94.,... :. ......3 fl$... ....3.~2 .... ;. .: :.. ..4.96 ............................... ... ;: ... ,..::.......:. >..................6.26 Di#f `' ~D:p3 ~1: 17 0.:99 : : X1:19 ~1 ~1 .: : ~ .: ;:. ;: `:: X0:86 Calendar Year Returns 09/30/2006 2006 Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 19971 und. 2,91.... ... ~..49..... ......i~.46 .... .. 3...Q3. ...3.!6~ 9,01. , 1.O..~Q......:..:, ..... .......:::.::::: ;;:::::: : 1?ohcy .. .:.. ::.. ..:' 3.9'f : 2.71: .. 2 ~4: 4 2'1.... .:4.68. ...1'k;02: :.' 8.51:. :. ;. >:::::.: ::: ;::::..::~:::.::: .. .:. miff.::: ' : =:~ :fl0 0 ~2 1 88 1.;`18 =1 03 2 0'1 1:69.. . Returns in Up Markets 10/31 /2000 3 Yr 4 Yr 5 Yr Incept f=:.... ~,~,d. 6.5. .... .,,.;.,..... 6..4.... ..... fi.5 9:2. ~?Qlicy 10 6 ,. . :::10.2 11 0.: 11.6 Ratio 61 6 82.2 .: ..:... . . $8;3:.: . 791.: Inception date is October 31, 2000 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Returns in Down Markets 10/31 /2000 3 Yr 4 Yr 5 Yr Incept ~U1'ld :::::::::::::>: >:: ~ .::::: .2.~ .... :::: ~.: ...1.8.... ~.: ......1.0 .. ::. ...........1.6. Policy -4:0 . ~3.7. ~3.5 X3.5. f~atio ;`::..55;'1::.::: ,.. . 48.$ :;:..::.46:8 . :::.. 46:$ 6 1 Village of Tequesta Public Safety Officers' Fixed Income Universe Comparisons High Quality Bond I ralling Keturns through September :3U, 1UU6 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr ............................................................................................................................................ ............................................................................................................................................ Ftir~ .:::::::::::::::: :::::::::::::::::::::::::::::::::: ::::::: :: d....... ...... . ............................................................................................................................................ Return 2.80 2.49 3.29 1.77 2.09 2.73 3.75 -tile 87 93 90 100 100 90 84 Pol. :, : ::::: : T IGy ................................................................... ........................................................... Return 3.76 2.71 3.32 2.94 3.08 3.92 4.96 -tile 32 91 88 72 61 47 40 Univer. se. ::::::::::::::::::: 5th %-tile 4.51 4.60 5.28 5.32 5.73 7.30 7.45 8.13 8.10 6.77 25th %-tile 3.84 3.55 4.28 3.76 3.98 4.65 5.26 6.55 6.59 5.68 50th %-tile 3.56 3.28 3.93 3.30 3.33 3.83 4.70 6.03 6.13 5.34 75th %-tile 3.11 3.04 3.63 2.88 2.77 3.19 4.12 5.30 5.43 4.86 95th %-tile 2.53 2.28 2.66 2.38 2.26 2.50 3.18 4.18 4.47 4.09 Calendar Year Returns Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 i~tind Return 2.91 2.49 0.46 3.03 3.65 9.01 10.20 -tile 70 93 100 62 61 32 3 .. ~... ... F'ti(iCy ..: Return 3.91 2.71 2.34 4.21 4.68 11.02 8.51 -tile 19 91 29 34 35 4 21 Iv >: >: > :::::::::::::::::::::::: ~::: :::::::: :::::::::::::::::::: Un ..~rs~ ........ . 5th %-tile 4.67 4.60 3.37 6.19 11.51 10.87 9.85 12.37 4.61 9.45 25th %-tile 3.84 3.55 2.41 4.54 5.34 9.37 8.40 10.90 1.75 8.34 50th %-tile 3.34 3.28 2.00 3.69 4.04 7.98 7.81 9.56 -0.45 7.26 75th %-tile 2.70 3.04 1.57 2.13 2.90 5.51 7.00 7.70 -1.46 6.33 95th %-tile 1.60 2.28 1.09 0.98 1.63 1.50 4.93 5.78 -3.67 4.50 Returns are in percent. "%-tile" is the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is October 31, 2000 to September 30, 2006 7 Village of Tequesta Public Safety Officers' Equity Executive Summary Account Reconciliation 09/30/2006 2006 10/31 /2000 Qtr YTD Incept ....................... ....................... 13ec~ir}ni:ng Value .................. .................. ; :.1~72g ." ........... ............ ,.1x541. ................ ................ . ' :: ;.:: 85$ i~lef Flews :: 32 '11 . fl 912: vestm: ri.:. e t OfL ~::::::::~:~:::: ~ ::: ...... ......72 :::::::: 11.8. »::< ......60 ~ridthg...alue .... 1,.82.9.. .....1,829.. ...1,$29.. Investment Policy Index Weight ................................... ................................... &P:5 0 :::::::::::::::::::::::: ~....4 ...... ............... . .................................. ................................. ::::::::::::::::::::::::::::::::::::1:0.:.0:: . .. Q,4... Total :~::::.: 100,00 I railing Keturns through September :iU, ZUU6 10/31 /2000 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept 3`: iii :::::::: ti d 4.78 ............ ........ ....................... ............. ......... ::6:i3::: ............ ............ ........... :::,$.:8$::: ............ ........... ............ ::~::8:35 ::: ............ ............ ............ :: 3:n:1 ::: ........... ........... ........... :::::::::::::::: :::::::::::::::::::::::::::::::::::::::: ::::::=. .... 2.68 ...................................................................... ....................................................................... ............................................................. ....................... ............. ......... poi : :::::::: :::: :: t.pY .... ...10..7.9 ............ ........... ::: ::: ...11 ~2 . ........... ............ ..1230. ............ ............ '1.5.21......._ ........... ........... .... x.97. ......... ....................................................................... ...................................................................... :: ::::::::: ::::::::::::::;::::::::::::::::::::: 0.54 . ..... Dtf..........5.41 X9.$9... ....3..47... ....6,85... ..3.95 ;; 3.22 Calendar Year Returns 09/30/2006 2006 Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997 d 4. ~ .......................U~... ................................. ...7.08 : ........... :: ~3:~9::::::: ............ ::'17:;88:::::'1:833::: ..................... ::~2:7::28:: .......... :::~1:3:87:::::::::::::::::::::::::::::::::::::::::::::::: ..................................................... 3~ f :::: >: ;::::::::: of .. 7.:: GY .................5.6..... :::::53:: ...8...... :::4: :1:::: ..... 9..... : 'j' ... .. x,88 :: ::2868::: ::22;:14: - :::1:1::8$::::::::::::::::::::::::::::::::::::::::::::::::::::: - ............1..60... ....1.45 .. ....$.90.... ..7..00.....'3 0.35.. .... 5.18. ......1.99 ........................................... Keturns in Up Markets 10/31 /2000 3 Yr 4 Yr 5 Yr Incept ~i~iid:::::::` :::::::.: :.::::: "17.5 ...,.. : ,.1.5.7 3 5.(3.. ......1 ~.2 . Piif .icy .........................1.9.5... gas 2~,.2... ...,.,._...........24..3 ~.`' atto 89.3::::: ::: 45 :::: 6......... ::: ~ . .5.. fl. . _ ... ..........66.9:: Inception date is October 31, 2000 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. ' Returns are net of fees. Returns in Down Markets 10/31 /2000 3 Yr 4 Yr 5 Yr Incept ...... 1=tirid . ; ,::. -.1:6.4:..:. . ;:. -11..0. -2b:~ :.... -~8:5 Fo[i~ : ~' X5:4 : y . ........ . .. X8:3: . ..... :: ~ 4,: -3 2..5 ..4,3: :Ratio:: : .:: ::1'93.5:'::: .:':#32.4 ,.. 83,1.:... ....93;g. 8 Village of Tequesta Public Safety Officers' Equity Universe Comparisons Broad Large Cap Growth I railing Keturns through September 30, 2006 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr ~~`tin .:::::::::::::::::::::::::::::::::::::.::::.:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Return 2.38 7.08 4.78 6.63 8.83 8.35 3.01 -tile 15 13 61 84 56 91 79 otlGy ................................................................:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Return 4.14 8.53 10.79 11.52 12.30 15.21 6.97 -tile 1 2 10 23 14 16 16 tJriu r. e se :::: ::::::::::::::::::::::::::::::::::::::::::~::::::~:::::::::::::::::::::::::::::::::::: ::::::::::: :::: 5th %-tile 3.56 8.06 11.56 13.58 13.94 17.05 8.36 1.62 7.12 11.37 25th %-tile 1.18 5.48 8.50 11.34 11.25 14.16 6.05 -0.97 2.20 5.63 50th %-tile -1.22 2.82 5.96 9.36 9.20 12.34 4.87 -3.64 -0.09 3.60 75th %-tile -3.66 -0.65 3.16 7.77 7.42 10.90 3.42 -6.59 -1.72 2.43 95th %-tile -7.50 -7.05 -3.37 2.42 4.45 7.66 0.67 -11.44 -3.95 0.59 Calendar Year Returns Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 t~std ....................................... Return 4.07 7.08 -3.99 17.88 18.33 -27.28 -13.87 -tile 38 13 100 4 100 59 21 Rb(iCy ............. . Return 5.67 8.53 4.91 10.88 28.68 -22.10 -11.88 -tile 11 2 73 27 39 22 10 i Un verse . 5th %-tile 6.37 8.06 15.98 17.21 ........... 40.85 ............ -15.79 ........... -9.94 . ........... -0.22 . .......... 66.15 .. .......... 50.95 25th %-tile 4.77 5.48 10.65 11.08 31.14 -22.77 -14.91 -7.14 43.89 37.77 50th %-tile 3.50 2.82 7.27 8.09 27.09 -25.90 -19.23 -11.77 32.72 31.70 75th %-tile 1.73 -0.65 4.64 5.59 24.31 -29.82 -23.97 -17.62 24.68 25.56 95th %-tile -2.44 -7.05 1.30 2.15 20.51 -34.42 -32.11 -26.13 15.29 14.10 Returns are in percent. "%-tile" is the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is October 31, 2000 to September 30, 2006 9 Village of Tequesta Public Safety Officers' Pension Trust Fund ' Up Market Returns 20.00% 1500°/ ---- - -- --- o 10.00% --- ' 5.00% - - - -- - 0.00% 1 3 Yr 4 Yr Fund (%) 10.81 9.92 Policy (%) 12.06 14.83 ' Difference (%) -1.25 -4.91 Ratio 89.64 66.89 # Up Qtrs 9.00 12.00 t -- Down Market Returns 0.00% ' -5.00% -- - -- - - - 00% - -- - -- - - -- - -- - -10 . -15.00% - Yr 3 4 Yr ' Fund (%) Policy (%) __ _ _ -5.76 -2.20 -5.76 -3.30 Difference (%) -3.56 -2.46 Ratio 261.82 174.55 - # Down Qtrs - 3.00 4.00 ' ~ Fund (%) ~ Policy (%) Rockwood assumed account on April 4th 2005 10 5 Yr Incep 9.35 9.89 14.48 14.49 -5.13 -4.60 64.57 68.25 14.00 15.00 5 Yr Incept -8.30 -12.29 -11.25 -14.12 2.95 1.83 73.78 87.04 6.00 8.66 Village of Tequesta Public Safety Officers' Pension Trust Fund Objective Comparison v a I u e Inception date is October 31, 2000 All dollar values are shown in thousands. Rockwood assumed account on April 4th 2005 11 w i uvi Mu[ Juz auz u0z Mu3 J03 503 UU3 M04 J04 S04 D04 M05 J05 S05 D05 M06 J06 S06 Quarter Ending ^ Fund ~ Policy Nominal 8% ^ CPI + 3% ' Village of Tequesta Public Safety Officers' Pension Trust Fund r 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. 12 Village of Tequesta Public Safety Officers' Pension Trust Fund Attribution of Returns Attribution of Performance to show Manager Contribution Policy ~:::::Nla~iager.:~aritcitziitioi: Fund Current Quarter 4.61 =1::2(7:: 3.41 Year to Date 5.98 ~a;98 : 5.00 3 Years 8.11 ~2:~2 : 5.89 4 Years 10.00 :: ~4::Z3:: 5.77 5 Years 6.06 :::: : :::::::::::::::::::::: :::=z:3~;: 3.72 ; Incept 3.05 :::: :::::::::::::: :::: ;'1::87:: 1.18 Policy + Manager Contribution =Fund Attribution of Manager Contribution between Asset Allocation and Security Selection Asset Allocation Security Selection i~lanag~c CoritritiitiQri Current Quarter -2.34 1.14 =12Q Year to Date -3.01 2.03 =0!:98:: 3 Years -3.90 1.68 =2:22:: 4 Years -5.04 0.81 X4:23:: 5 Years -2.89 0.55 :: :: ...... ....... ...... ....... ...... ' : :: >::: >:: :::<::::~2:34 ............................ ............................ ............................ ............................ ............................ Incept -1.58 -0.29 :: =1:87 Asset Allocation + Security Selection =Manager Contribution Rockwood assumed account on April 4th 2005 13 ' 10.00% ' P e 5.00% r c e n t 0.00% E f f e -5.00% c t t 10 00°/ Village of Tequesta Public Safety Officers' Pension Trust Fund Asset Allocation Effect ' ° D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 D05 MO6 J06 S ' Quarter Ending Security Selection Effect 10.00% P e 5.00% r c e n t 0.00% E ' f f e -5.00% c t -10 00% ' D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 505 D05 M06 J06 5 Quarter Ending ~ Quarterly Effect Cumulative Effect Rockwood assumed account on April 4th 2005 14 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 70 60 50 40 30 20 10 0 70 60 50 40 30 20 10 0 Village of Tequesta Public Safety Officers' Pension Trust Fund Asset Allocation vs Targets D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 J06 S06 Quarter Ending ❑ Cash & Equiv Target UUl MUL JUL 5U2 UUL MU3 JU3 SU3 UU3 MU4 JU4 SU4 U04 MU5 JU5 505 005 M06 J06 S06 Quarter Ending Equity -X— Target UU1 MUL JU2 SU2 UU2 MU3 JU3 503 D03 MU4 J04 SO4 D04 M05 J05 S05 D05 M06 J06 S06 Quarter Ending Fixed Income -)K— Target Rockwood assumed account on April 4th 2005 15 1 o.oo°i° 5.00% R e t 0.00% u r n -5.00% -10.00% $14 $13 $1? $12 v $12 a $11 I u $11 e $10 $10 Village of Tequesta Public Safety Officers' Pension Trusfi Fund Manager Contribution ___ I . ~ ~~ I J1 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 D05 M06 J06 SI Quarter Ending ~ Quarterly -- Cumulative Growth of $100 Fund vs Policy Rockwood assumed account on April 4th 2005 16 "'~'" S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 D05 M06 J06 S06 Quarter Ending ^ Fund ^ Policy ' Village of Tequesta Public Safety Officers' Pension Trust Fund Quarterly Comparison Analysis ($) Period Ending Fund Policy Diff Nominal 8% Diff CPI + 3% Diff Oct 2000 1,579 1,579 0 1,579 0 1,579 0 Dec 2000 1,555 1,540 16 1,603 -48 1,590 -35 Mar 2001 1,459 1,480 -21 1,658 -199 1,645 -186 Jun 2001 1,527 1,539 -12 1,697 -170 1,682 -156 Sep 2001 1,466 _ 1,461 5 1, 755 _ -289 1, 723 -257 Dec 2001 1,579 1,573 6 1,813 -234 1,745 -165 Mar 2002 1,573 1,614 -42 1,889 -316 1,819 -247 Jun 2002 1,624 _ 1,597 27 2,014 -390 1,934 -310 Sep 2002 1,636 1,559 77 2,145 -509 2,051 -415 Dec 2002 1,629 1,659 -30 2,202 -573 2,081 -453 Mar 2003 1,672 1,683 -11 2,288 -616 2,178 -506 Jun 2003 1,776 1,881 -105 2,366 -591 2,222 -446 Sep 2003 1,972 2,055 -84 2,562 -590 _ 2,405 -433 Dec 2003 2,086 2,235 -150 2,654 -568 2,453 -368 Mar 2004 2,202 2,316 -114 2,741 -539 2,546 -344 Jun 2004 _ _ 2,225 2,332 -107 2,814 -589 _ 2,616 -391 Sep 2004 2,407 2,508 -102 3,039 -632 2,808 _ -401 Dec 2004 2,600 2,686 -87 3,141 -541 2,877 -277 Mar 2005 2,507 2,689 -182 3,241 -734 2,984 -477 Jun 2005 2,587 2,797 -210 3,357 -770 3,080 -492 Sep 2005 2,864 3,034 -169 3,611 -747 _ 3,360 -496 Dec 2005 2,910 3,149 -239 3,752 -842 3,422 -512 Mar 2006 3,027 3,258 -231 3,869 -843 3,547 -520 Jun 2006 3,039 3,275 -236 3,985 -947 3,671 -632 Sep 2006 3,345 3,628 -284 4,263 -919 3,897 _ -553 All dollar values are shown in thousands. Rockwood assumed account on April 4th 2005 17 Village of Tequesta Public Safety Officers' Pension Trust Fund Quarterly Comparison Analysis (%) Period Ending Fund Policy Diff Nominal 8% Diff CPI + 3% Diff Mar 2001 -7.63 -5.35 -2.28 1.94 -9.57 1.95 -9.58 Jun 2001 4.16 3.49 0.67 1.94 2.22 1.85 2.31 Sep 2001 -5.55 -6.60 1.05 1.94 -7.49 0.94 -6.49 Dec 2001 6.03 5.94 0.09 1.94 4.09 -0.16 6.19 Mar 2002 -2.92 0.08 -3.00 1.94 -4.86 1.95 -4.87 Jun 2002 -2.19 -6.22 4.03 1.94 -4.13 1.44 -3.63 Sep 2002 -4.74 -7.81 3.07 1.94 -6.68 1.34 -6.08 Dec 2002 _ -1.33 5.46 -6.79 1.94 -3.27 0.74 -2.07 Mar 2003 -0.00 -1.13 1.13 1.94 -1.94 2.55 -2.55 Jun 2003 4.15 9.63 -5.48 1.94 2.21 0.44 3.71 Sep 2003 2.61 1.35 1.26 1.94 0.67 1.54 1.07 Dec 2003 3.62 6.62 -3.00 1.94 1.68 0.24 3.38 Mar 2004 3.89 2.04 1.85 1.94 1.95 __ 2.35 1.54 Jun 2004 0.15 -0.15 0.30 1.94 -1.79 1.95 -1.80 Sep 2004 0.36 0.25 0.11 1.94 -1.58 0.84 -0.48 Dec 2004 _ _ 6.19 5.36 0.83 1.94 4.25 0.94 5.25 Mar 2005 -5.01 -1.34 -3.67 1.94 -6.95 2.35 -7.36 Jun 2005 1.07 2.04 -0.97 1.94 -0.87 1.44 -0.37 Sep 2005 3.41 1.74 1.67 1.94 1.47 2.96 0.45 Dec 2005 -0.88 _ 1.46 -2.34 1.94 -2.82 -0.26 -0.62 Mar 2006 2.49 2.05 0.44 1.94 0.55 2.35 0.14 Jun 2006 -0.94 -0.72 -0.22 1.94 -2.88 2.35 -3.29 Sep 2006 _ 3.41 4.61 -1.20 1.94 1.47 0.74 2.67 Incept. 1.18 3.05 -1.87 8.00 -6.82 _ 5.68 -4.50 Returns for periods exceeding one year are annualized. Rockwood assumed account on April 4th 2005 18 II' Village of Tequesta Public Safety Officers' Pension Trust Fund 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 Public Safety Officers' Pension Trust Fund Risk Measures 3 Yr : F_u:ni=i: ::: I?i~l~y: ::::::D'iff # of Negative Qtrs 3.00 3.00 0.00 # of Positive Qtrs 9.00 9.00 0.00 Batting Average 50.00 50.00 0.00 Worst Qtr -5.01 -1.34 -3.67 Best Qtr 6.19 6.62 -0.43 Range 11.20 7.96 3.24 Worst 4 Qtrs -1.60 3.91 -5.51 Standard Deviation 6.50 4.38 2.12 Beta 1.21 1.00 0.21 Annualized Alpha -3.06 0.00 -3.06 R-Squared 0.67 1.00 -0.33 Sharpe Ratio 0.50 1.25 -0.75 Treynor Ratio 2.68 5.46 -2.78 Tracking Error 3.85 0.00 3.85 Information Ratio -0.58 5 Yr: ; ;:.: ;..Fund PolSc. ':Diff # of Negative Qtrs 8.00 6.00 2.00 # of Positive Qtrs 12.00 14.00 -2.00 Batting Average 55.00 45.00 10.00 Worst Qtr -5.01 -7.81 2.80 Best Qtr 6.19 9.63 -3.44 Range 11.20 17.44 -6.24 Worst 4 Qtrs -10.75 -9.84 -0.91 Standard Deviation 6.15 6.69 -0.54 Beta 0.65 1.00 -0.35 Annualized Alpha -0.91 0.00 -0.91 R-Squared 0.51 1.00 -0.49 Sharpe Ratio 0.24 0.57 -0.33 Treynor Ratio 2.31 3.84 -1.53 Tracking Error 4.90 0.00 4.90 Information Ratio -0.48 Rockwood assumed account on April 4th 2005 4 Yr: ::: :::: ::::: ~ui~ti : P. ~'.~ :.:: :.... O rcy. ~ 'ff: DI . . ............ . # of Negative Qtrs 5.00 4.00 1.00 # of Positive Qtrs 11.00 12.00 -1.00 Batting Average 50.00 50.00 0.00 Worst Qtr -5.01 -1.34 -3.67 Best Qtr 6.19 9.63 -3.44 Range 11.20 10.97 0.23 Worst 4 Qtrs -1.60 3.91 -5.51 Standard Deviation 6.01 5.55 0.46 Beta 0.72 1.00 -0.28 Annualized Alpha -1.80 0.00 -1.80 R-Squared 0.44 1.00 -0.56 Sharpe Ratio 0.58 1.39 -0.81 Treynor Ratio 4.83 7.71 -2.88 Tracking Error 4.77 0.00 4.77 Information Ratio -0.89 ::Incept.:: ri Fu d . ': 'Pofic : .. y . : Diff .... . # of Negative Qtrs 10.66 8.66 2.00 # of Positive Qtrs 13.00 15.00 -2.00 Batting Average 57.74 42.26 15.48 Worst Qtr -7.63 -7.81 0.18 Best Qtr 6.19 9.63 -3.44 Range 13.82 17.44 -3.62 Worst 4 Qtrs -10.75 -9.84 -0.91 Standard Deviation 6.82 7.49 -0.67 Beta 0.71 1.00 -0.29 Annualized Alpha -1.67 0.00 -1.67 R-Squared 0.61 1.00 -0.39 Sharpe Ratio -0.21 0.05 -0.26 Treynor Ratio -2.06 0.41 -2.47 Tracking Error 4.81 0.00 4.81 Information Ratio -0.39 20 Village of Tequesta Public Safety Officers' Pension Trust Fund Return vs Risk through September 30, 2006 s.oo°r° ~.oo°i° s.oo°i° A n 5.00% n u a I i z 4.00% e d R e t 3.00% u r n 2.00% 1.00% 0.00%00% 5.00% 10.00% Risk (Annualized Std Dev) ~ Policy 15.00% Rockwood assumed account on April 4th 2005 20.00% ~ 21 Village of Tequesta Public Safety Officers' Pension Trust Fund ' Return vs Risk through September 30, 2006 3 Years 4 Years 20.00% 15.00% ' R e t 10.00% u r n ' s 5.00% 0.00% 1.00% 3.00% 5.00% 7.00% 9.00% 0.00% 2.00% 4.00% 6.00% 8.00% Risk (Annualized Std ®ev) ' 5 Years 8.00% -- - - 7.00% S&P 500 ' 6.00% _ - - R ' e ~ 5.00% ~ LB Gov/Core r ' g 4.00% Fund ' 3.00% ' 2.00°0 ~ - 0.00% 5.00% 10.00% 15.00% 20.00% Risk (Annualized Std Dev) 25.00% 20.00% R 15.00% e t u r 10.00% n s 5.00% 0.00°/ 8.00% 5.00% 10.00% 15.00% 20.00% Risk (Annualized Std Dev) Inception 8.00% - - - 7.00% 6.00% ~ LB G v/Core R 5.00% e t 4.00% u r n 3.00% s ~ 3 Mo TBill 2.00% 1.00% ~ and S~&P 500 0.00°/0 ~ - 0.00% 5.00% 10.00% 15.00% 20.00° Risk (Annualized Std Dev) I f Policy Rockwood assumed account on April 4th 2005 22 Village of Tequesta Public Safety Officers' Pension Trust Fund Policy: 10/31/2000-09/30/2006 55.00 S&P 500 35.00 Lehman Gov/Credit Bond 10.00 Citigroup Treasury Bill - 3 Month First Objective: 10/31/2000-09/30/2006 Annual Return of 8.00% Second Objective: 10/31/2000-09/30/2006 100.00 US Consumer Price Index + 3.00 annual adder Universe Data: 55% Lg Cap Core, 35% Hg Quality Bd, 10% Cash 10/31/2000-09/30/2006 35.00 High Quality Bond 55.00 Pure Large Cap Core 10.00 Taxable Money Market 23 Bogdahn Consulting, LLC. ' CONTRIBUTIONS/WITHDRAWALS Village of Tequesta-PSO Custodiaiz- Salem Trust Rockwood Capital Advisors From 06-30-06 To 09-30-06 Tran Trade Settle ' Code Date Date Security CONTRIBUTIONS ' li 07-03-06 07-03-06 Cash ~ ~ ER li 07-03-06 07-03-06 Cash EE li 07-14-06 07-14-06 Cash ER li 07-14-06 07-14-06 Cash EE li 07-31-06 07-31-06 Cash ER ' li 07-31-06 07-31-06 Cash EE li 08-10-06 08-]0-06 Cash li 08-10-06 ER 08-10-06 Cash EE li 08-24-06 08-24-06 Cash ER li 08-24-06 08-24-06 Cash ' EE li 09-08-06 09-08-06 Cash ER li 09-08-06 09-08-06 Cash EE li 09-12-06 09-12-06 Cash State contribution li 09-12-Ob 09-12-06 Cash State Contribution li 09-22-06 09-22-06 Cash ER G 09-22-06 09-22-06 Cash EE ' li 09-25-06 09-25-06 Cash Class action proceeds from Carnival Litigation Broker Amount Quantity Code Commission 6,312.01 3,483.42 6,200.54 3,434.37 6,276.37 3,470.26 6,380.91 3,530.13 6,430.54 3,533.71 6,482.85 3,534.19 67,742.22 65,700.10 7,625.80 4,152.64 5.33 204,295.39 WITHDRAWALS l0 07-12-06 07-12-06 Cash 200.00 Activity fee l0 07-12-06 07-12-06 Cash 15.00 Activity fee l0 07-12-06 07-12-06 Cash 302.63 Quarterly market based fee l0 07-28-06 07-28-06 Cash 120.00 Activity fee for quarter ending 6/30/06 l0 08-01-06 08-01-06 Cash 23.30 Foreign tax on Canadian Pacific dividend to OS-08-06 08-08-06 Cash 281.93 Business Services Connection for preparation of minutes Bogdahn Consulting, LLC. CONTRIBUTIONS/WITHDRAWALS Village of Tequesta PSO Custodia~z- Salea'n Trust Rockwood Capital Advisors From 06-30-06 To 09-30-06 Tran Trade Settle Code Date Date Security Amount Quantity l0 08-08-06 08-08-06 Cash 2,000.00 BC for period ending 6/30/06 to OS-08-06 08-08-06 Cash 1,221.54 Hanson, Perry & Jensen for legal sewices l0 09-28-06 09-28-06 Cash 795.70 Hanson, perry & Jenson PA l0 09-28-06 09-28-06 Cash 225.54 Business Services Connection, Inc. 5,185.64 EXPENSE ACCOUNTS 0.00 AFTER FEE PERFORMANCE EXPENSE ACCOUNTS dp 08-08-06 08-08-06 Administration Fee 4,049.70 Quarterly management fee to Rockwood Capital Advisors PORTFOLIO NET TOTAL 195,060.05 EXPENSE ACCOUNTS PAID BY CLIENT AFTER FEE PERFORMANCE EXPENSE ACCOUNTS PAID BY CLIENT 0.00 0.00 GRAND TOTAL 195,060.05 Broker Code Commission 2 Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL ' Village of Tequesta-PSO Custodian- Salem Trust Rockwood Capital Advisors September 30, 2006 (Excluding Reinvested Divs.) Unit Total Market Pct. Quantity Security Cost Cost Price Value Gain/Loss Assets DOMESTIC EQUITIES Common Stock Large Cap 815.000 Aflac Inc. 45.28 36,901.41 45.76 37,294.40 392.99 1.1 570.000 BOEING CO COM 58.58 33,389.12 78.85 44,944.50 11,555.38 1.3 855.000 CIT Group 54.92 46,955.83 48.63 41,578.65 -5,377.18 1.2 800.000 Caterpillar Inc 44.77 35,812.00 65.80 52,640.00 16,828.00 1.6 1,060.000 Heinz H J Company 42.21 44,741.75 41.93 44,445.80 -295.95 1.3 1,385.000 Hewlett Packard Co 32.33 44,770.40 36.69 50,815.65 6,045.25 1.5 1,350.000 Kraft Foods 32.61 44,020.40 35.66 48,141.00 4,120.60 1.4 610.000 Lockheed Martin Corp. 59.24 36,136.40 86.06 52,496.60 16,360.20 1.6 1,530.000 Loews Corp. 23.82 36,448.68 37.90 57,987.00 21,538.32 1.7 ' 1,050.000 PG & E Corp. 34.97 36,721.55 41.65 43,732.50 7,010.95 1.3 585.000 Prudential Financial Inc 78.05 45,656.50 76.25 44,606.25 -1,050.25 1.3 1,720.000 Safeway Inc. COM 22.29 38,341.72 30.35 52,202.00 13,860.28 1.6 1,265.000 Texas Instruments 33.58 42,483.38 33.25 42,061.25 -422.13 1.3 522,379.14 612,945.60 90,566.46 18.3 Mid Cap 970.000 Apartment Inventory & 38.98 37,805.94 54.41 52,777.70 14,971.76 1.6 ' Management Co - Reit 795.000 BRE Properties 57.15 45,433.53 59.73 47,485.35 2,051.82 1.4 610.000 Brown Forman Corp. 74.52 45,457.69 76.65 46,756.50 1,298.81 1.4 Class B 1,790.000 1 Chesapeake Energy 20.50 36,695.00 28.98 51,874.20 15,179.20 1.6 Corp. 3,540.000 EI Paso Corp 10.38 36,744.85 13.64 48,285.60 11,540.75 1.4 960.000 FISERV INC COM 43.76 42,009.98 47.09 45,206.40 3,196.42 1.4 1,305.000 II HCC Insurance 28.05 36,603.42 32.88 42,908.40 6,304.98 1.3 ~ Holdings Inc Com I 985.000 Henry Schein Inc. 45.52 44,840.94 50.14 49,387.90 4,546.96 1.5 860.000 MCKESSON HBOC 45.92 39,488.79 52.72 45,339.20 5,850.41 1.4 INC COM 1,250.000 McCormick & Co Inc 35.29 44,115.50 37.98 47,475.00 3,359.50 1.4 680.000 NYSE Group Inc. 66.09 44,941.61 74.75 50,830.00 5,888.39 1.5 1,150.000 Price T Rowe Assoc Inc 33.76 38,819.00 47.85 55,027.50 16,208.50 1.6 Com 960.000 Protective Life Corp. 38.56 37,022.21 45.75 43,920.00 6,897.79 1.3 2,165.000 Seagate Technology 18.73 40,550.45 23.09 49,989.85 9,439.40 1.5 Holdings 300.000 Sears Holdings Corp 151.84 45,552.30 158.09 47,427.00 1,874.70 1.4 ' 590.000 Simon PPTY Cn~oup Inc. 62.30 36,757.00 90.62 53,465.80 16,708.80 1.6 670.000 Stericycle Inc 63.44 42,506.07 69.79 46,759.30 4,253.23 ] .4 695,344.28 824,9]5.70 129,571.42 24.7 ' Small Cap 2,010.000 J2 Global 23.18 46,583.06 27.17 54,611.70 8,028.64 1.6 Communications Inc. 1,100.000 Landstar Systems Inc. 32.79 36,069.00 42.70 46,970.00 10,901.00 1.4 1,380.000 Pacet International Inc. 32.35 44,639.00 27.76 38,308.80 -6,330.20 1.1 ' 760.000 Precision Castparts 37.69 28,643.75 63.16 48,OOL60 19,357.85 1.4 Corp. 1 Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL Village of Tequesta-PSO Custodian- Salei~z Trust Rockwood Capital Advisors September 30, 2006 (Excluding Reinvested Divs.) Unit Total Market Pct. Quantity Security Cost Cost Price Value Gain/Loss Assets 1,470.000 VCA Antech Inc 28.86 42,428.61 36.06 53,008.20 10,579.59 1.6 198,363.42 240,900.30 42,536.88 7.2 1,416,086.84 1,678,761.60 262,674.76 50.2 ],416,086.84 1,678,761.60 262,674.76 50.2 INTERNATIONAL EQUITIES Foreign Stock Foreign 935.000 Canadian Pacific 44.44 41,555.89 49.74 46,506.90 4,951.01 1.4 Railway Ltd. NEW 845.000 Ryanair Holdings 55.22 46,663.60 63.29 53,480.05 6,816.45 1.6 PLC-SP ADR 850.000 Volvo Aktiebolaget 43.66 37,111.00 59.70 50,745.00 13,634.00 1.5 ADR CL B 125,330.49 150,731.95 25,401.46 4.5 125,330.49 150,731.95 25,401.46 4.5 125,330.49 150,731.95 25,401.46 4.5 FIXED INCOME Corporate Bonds 10,000 Proctor & Gamble Co. 97.92 9,792.00 98.41 9,841.06 49.06 0.3 4.950% Due 08-15-14 10,000 SBC Communications 96.21 9,621.10 96.62 9,661.95 40.85 0.3 Inc. 5.100% Due 09-15-14 15,000 Midamerican Energy Co 93.82 14,072.85 94.98 14,246.66 173.81 0.4 4.650% Due 10-01-14 11,000 Cisco Systems 100.14 11,015.07 100.80 11,087.48 72.41 0.3 5.500% Due 02-22-16 15,000 Lehman Bros Holdings 99.53 14,930.]0 99.63 14,944.59 14.49 0.4 Inc Series MTN 5.500% Due 04-04-] 6 59,431.12 59,781.74 350.62 1.8 Accrued Interest 905.83 _ 0.0 59,431.12 60,687.57 350.62 1.8 Government Bonds 50,000 FNMA Preassign 99.38 49,687.50 99.09 49,546.88 -140.63 1.5 4.250% Due 09-28-07 60,000 FNMA 99.38 59,628.60 99.72 59,831.25 202.65 1.8 5.000% Due 01-23-09 25,000 FHLB 99.20 24,799.78 100.59 25,148.44 348.66 0.8 5.250% Due 02-13-09 20,000 FEDERAL HOME LN 104.33 20,866.06 101.81 20,362.50 -503.56 0.6 MTG CORP 5.750% Due 03-15-09 50,000 FHLB 100.00 50,000.00 97.97 48,984.38 -(,015.63 I.5 4.100% Due 03-30-09 70,000 US Treasury Note 108.31 75,818.75 103.65 72,556.61 -3,262.14 2.2 6.000% Due 08-15-09 2 1 1 1 1 Quantity Security 80,000 US Treasury Note 3.625% Due 06-15-]0 105,000 FEDERAL NATL MTG ASSN 5.500% Due 03-15-11 30,000 U.S. Treasury Note 4.875% Due OS-31-1 ] 100,000 US Treasury Note 4.875% Due 07-31-11 50,000 Federal Home Loan Bank Bond 4.700% Due 10-04-11 50,000 US Treasury Note 4.000%Due 11-15-12 20,000 US Treasury Note 5.125% Due OS-15-16 Accrued Interest FNMA 26,667 FNMA Pool #725773 5.500% Due 09-01-34 42,185 FNMA Pool #735503 6.000% Due 04-01-35 66,375 FNMA Pool #835760 4.500% Due 09-01-35 86,751 FNMA Pool #735897 5.500% Due ] 0-01-35 Accrued interest GNMA 53,502 GNSF Pool #599190 6.000% Due 03-15-35 92,062 GNSF Pool #640896 7.000% Due 04-15-35 72,613 GNSF Pool #641273 4.500% Due 04-15-35 Accrued Interest Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL Village of Tequesta-PSO Custodia~z- Sale»i Trust Rockwood Capital Advisors September 30, 2006 (Excluding Reinvested Divs.) Unit Total Cost Cost P 95.30 76,237.50 105.68 110,958.75 96.79 102.34 Market Pct. Value Gain/Loss Assets 77,434.40 1,196.90 2.3 107,460.94 -3,497.8 ] 3.2 100.55 30,165.23 101.15 30,344.52 179.29 0.9 100.06 100,057.81 101.16 101,160.20 1,102.39 3.0 100.00 50,000.00 97.84 48,921.88 -1,078.13 1.5 94.61 47,306.64 96.86 48,429.70 1,123.06 1.4 102.50 20,500.00 103.73 20,746.88 246.88 0.6 716,026.62 710,928.56 -5,098.06 21.3 6,079.20 0.2 716,026.62 717,007.76 -5,098.06 21.4 99.51 26,537.12 98.71 102.24 43,130.82 100.68 94.19 62,516.74 93.46 99.39 86,222.04 98.57 218,406.71 218,406.71 103.87 55,575.18 107.47 98,937.61 97.8 I 71,024.80 225,537.59 225,537.59 1,219,402.04 3 rice 26,323.25 -213.87 0.8 42,472. ] 7 -658.65 1.3 62,034.12 -482.61 1.9 85,509.18 -712.87 2.6 216,338.72 -2,067.99 6.5 979.66 0.0 217,318.38 -2,067.99 6.5 101.23 54,158.42 -1,416.77 1.6 103.24 95,045.70 -3,891.91 2.8 94.48 68,604.04 -2,420.76 2.1 217,808.16 -7,729.43 6.5 574.31 0.0 218,382.47 -7,729.43 6.5 1,213,396.18 -14,544.87 36.3 Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL Village of Tequesta-PSO Custodial'-Salmi Trust Rockwood Capital Advisors September 30, 2006 (Excluding Reinvested Dirs.) Unit Total Quantity Security Cost Cost Price CASH & EQUIV. Money Markets 301,833 Goldman Sachs 1.00 301,833.11 Fin.Sq.Treasury Oblib. Admin TOTAL PORTFOLIO 301,833.] 1 3,052,652.48 4 Market Pct. Value Gain/Loss Assets 1.00 301,833.11 0.00 9.0 301,833.11 0.00 9.0 301,833.11 0.00 9.0 3,344,722.84 273,531 ~5 100.0