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Home My WebLink AboutDocumentation_Pension Public Safety_Tab 03_02/14/2006BOGDAHN CONSULTING LLC. simplifying your investment decisions Village of Tequesta PUBLIC SAFETY OFFICERS PENSION PLAN December, 2005 www. bo gdahnconsulting. com 340 West Central Avenue Suite 300 • Winter Haven, Florida 33880 Telephone (863) 293-8289 • Facsimile (863) 292-8717 i ii it Performance Evaluation '' for Village of Tequesta Public Safety Officers' Pension Trust Fund Rockwood Capital Advisors For the Period Ending December 31, 2005 Presented by: Bogdahn Consulting, LLC ' Village of Tequesta Public Safety Officers' Pension Trust Fund ~'i , 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 12/31 /2005 2005 10/31 /2000 Qtr YTD Incept ...................... ....................... ~e~ii}ritri~: Value :: ...................... ..................... ..................... ::::::::::2;84: ..................... .......... .......... ~6Q~ : .......... ............... ............... ::::: 1;579 ............... ...................... ....................... filet:Flows : ..................... ..................... ::::::::::::::::~fl::::::: .......... .......... ::::: 35fl : ............... ............... : 1:;~?99:: iriiiestm:ent:?~f.L :::::: ::: :::::::: =24:: :: :::::=3:8:::: ::::::::::~34::I Ertd.irjg. Value :.:.: ...: 2;91'f .:... .2,91: : : :: ; 2 9~i 1 Investment Policy Trailing Returns through December 31, 2005 10/31 /2000 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept Fti~id ::::::: ='1:57: ..................... ...................... ::::: 4:48 ::::: x.:52:: ........................ ....................... :::% :1:9'I:: <::: .............. ............... :0:~:7 :: »>::::: `:: ` ..................... .................... ::::::::::: >::::::: ' ::::::::::::::::::::: ::::::: 0:4'I: ........................................................... ............................................................ ..................... ...................... ..................... f?bfi.. py. .....x..91. .............. ............. .............. .... 5 ~4 . .......... .......... .......... ~ : 1:: : 9.?~ .... .............. ............... .............. ::: :4:5fi ::::: .............. ..................... .................... ..................... :2:99 :::::::::::::: ..................... ........................................................... ............................................................ ........................................................... ~2 :::::::::::::::::":::::::::::::::::::~:::::::::::::: . .34 ........................................................... ' . . f~itF ...:: -5.:4:8 . ..1 26 T2.89 . ....2.65. 2,22 .............. ............. ........................................1.93 Calendar Year Returns 12/31 /2005 2005 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 ........................................... ........................................... ~... , ::::::::::::::::~Ot ;;:::;1:57 :: end.. $6 .. ........................................... ........................................... ........... ........... :: i i3:8 :: 9 ... ........... ........... .......... ........... : >:1(3::73:: ........... ........... ........... .......... .......... ;:;1 ~ ::.5: ....Q.7. . .......... ......... ................................................................. ................................................................. :::::=3:65:::::::::::::::::: ::::::::::::>.` :: : %:::: :::::: :: ................................................................. ................................................................. ............................... ............................... :Doti ~ :::::::::::::::: ~:48:: ............................... ............................... ............ ............ :::::3:91::: ............ ............ ........... ........... ::::7:8~ :: ........... ........... ........... ........... :::17::1:3::: ........... ........... .......... .......... ::::8::74: .......... ......... ................................................................. ................................................................. :::::=:3:07::::::::~:::~::::::::~:::::::::::~:::~::~:::::~:~::::::::::::: ................................................................. ................................................................. ............................... ............................... tiff:::::::: = . .: 2.3? .. ............ ............ : .....::: .......5.48..... ........... ........... :::: :::. ...,.,.3.28... ........... ........... :.. ... . ....-6.4:0 .. .......... ......... .. = :. ~'1: ....2.0.. ................................................................. ................................................................. :::::=.:58:::::::: :::::::::::::::::::::::::::::::::::: ~ :::::::: ......0 ......................................................... . Returns in Up Markets 10/31 /2000 3 Yr 4 Yr 5 Yr Incept ~~.. ci r1 ..............11..2 .......................... .......................... .........7..4....... ................... .... . .. . ..... ..9.:5. ........ ....... ...........9.5. ................ ................ .......................... .......................... #'Qlic 4:1: Y .... 1 .......................... ........... . . .. .. ................... ................... 1:3:: fi ..... .................... ........ ....... 14:: fi ....... ................ ................ :::::::::.:4:6: 1.... . ................ .................................. .............................................. ............................................. Ratio ::: :: :::::79:8: ::::::54:5: :::: ............................................. ....... ....... ....... :65:4: ....... ................ ................ ................ ::: ::::::65:4 ................ 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 fiti~~ ::: ~~:9 : ............................. ............................. ............................ ~9:~: .............. ............... ............... -x:3:7:: .......... ......... .......... ::::::: -1:3:4: ............... ............... ............... ............................. ............................ Pofieji :::::::::::::~2;6:::: . ... ... .. ..... ............... ............... ::::~::1:~:8: :: : ........ . .. ......... .......... : ~:1:5:a::: . ............... ............... ::::::::: >1:5;5:: ....... .. . . .... ............................. ............................ Ratio ::::::::::::::::::::::'1:86:8 :: ............................. .. . ............... ............... 71$:::::: .............. . ........ ......... .......... :::88:~;:: .......... ............... ............... ............... ::::::::::::::::g6;1::: ............... 2 Village of Tequesta Public Safety Officers' Pension Plan Asset Allocation Through December 31, 2005 Equity 55% At Cost Equity 52% Fixed Income 40% Fixed Income 43% 3 At Market Cash &Equiv 5% Cash &Equiv 5% 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 I ramng Keturns tnrougn uecember ;~~ , 1UU5 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr F...... u . d .:::: : ::::::::::::::::::::::::::::::::: :: ::::::::::::::::::: n ............................................................................................................................... Return 2.53 3.62 -1.57 4.48 6.52 1.91 0.77 -tile 86 92 100 79 97 96 89 Pot' ::::~ :::: :::: :: ::: ::::::::: ::::::::::::::::: :: :: ::::::::::::~::::::::::::::::::::: :::: :: :: ..IGy ............... Return 3.22 5.33 3.91 5.74 9.41 4.56 2.99 -tile 60 39 47 38 39 26 28 ~Ji'ver se : :::::::::::: :::::::~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: I ....................................................................................................................................... 5th %-tile 5.62 8.02 6.84 7.81 11.20 5.93 4.73 5.20 5.65 6.40 25th %-tile 4.16 5.96 5.00 6.48 10.04 4.61 3.16 3.39 4.16 5.17 50th %-tile 3.42 5.06 3.80 5.42 9.02 3.73 2.25 1.87 3.08 4.62 75th %-tile 2.92 4.52 3.12 4.66 8.15 2.89 1.46 0.89 2.41 4.00 95th %-tile 2.05 3.04 1.45 3.36 6.73 1.92 0.24 -0.38 1.45 3.04 Calendar Year Returns Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 f`ti ::::::::::::::::::::::::::::::::~:~:::::::::::::::::: ::::::: ::::::~:::::::::::::::::::::::::::::: rtd ............................... ................................ Return -0.86 -1.57 10.89 10.73 -10.75 -3.65 -tile 100 100 1 100 75 53 Ptificy ..:.. ~. ... Return 1.46 3.91 7.61 17.13 -8.74 -3.07 -tile 45 47 31 38 34 39 iv tJn ..arse :::: :::::::: :: ~ ::: :: ::::::::: :::> ::::::: :::::::::::: :::::: :::::: ::':::: ':::: ::::; :::: :: ::: : 5th %-tile 2.35 6.84 9.50 19.96 -5.88 1.24 9.38 17.94 21.50 23.12 25th %-tile 1.78 5.00 7.88 17.96 -8.23 -2.00 3.89 13.36 18.86 21.60 50th %-tile 1.41 3.80 6.87 16.66 -9.43 -3.55 -0.37 11.33 16.76 20.00 75th %-tile 1.12 3.12 5.58 15.03 -10.82 -4.83 -2.04 8.70 12.99 17.35 95th %-tile 0.37 1.45 4.07 12.75 -12.30 -7.55 -4.27 3.68 10.11 12.68 t Returns are in percent. "%-tile" is the percentile ranking within the universe. Retums for periods exceeding one year are annualized. Incept is October 31, 2000 to December 31, 2005 Rockwood assumed account on April 4th 2005 5 Village of Tequesta Public Safety Officers' Fixed Income Executive Summary Account Reconciliation 12/31 /2005 2005 10/31 /2000 Qtr YTD Incept 8 46 Be~c~rnrng Value 1,.~:2~ $3.:: ' .:: 6. Investment ro Index :'~':tit~[ ::::::::: :::::::: ........................... ........................... Weight ......................................... 7~ ::::::::::::::':::` ::::::~ ::. ~ oo:oi~ I ralling Keturns through December :~'I , 1UUb 10/31 /2000 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept ~~~d::::::::::::n~;~3:::: :: '1::77:: ::::::::::2::39 :::: ~'::1: : :::::::::4.0... :::: :''22 ::::::::::::::~: ... 5 .................. ::::::::~:::::::::::: :::::::::::::::::::::::::::: ai:72 ..........................................,...,.....,....._.,............... . 'ofiCji :::::::: x;34:::: : 3:2'7:: 4 ::::: 3~.'.'.'.'. 5:51 '.'.'.' ...... .. 0:90::::: ~ ::::::: ....................... :85 6 :::::::::::::::::::::: ~ ::~::: ....................................................... . ~ Qiff '1;81.': ~1::~0. '.'.'.'.4' .'~ ~ ~'. . ~F..35.. ::~~ ...1.50 .0.88:. >: .. 3 .9. . Calendar Year Returns 12/31 /2005 2005 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 F n .: '::':'..::.:.::':':' ' ;8~1::'.: ~..d .................0....... .:0.5 $.. 3:03.'.'.'..' .. .:3..05'.'.:: ..9,0:1:. ::':':1Q.~0::':.'....:~:::'::::.':': : Polley .: t7:~59... . .2.34 _: : 4:2'k 4:.68::.. 1::~ 2:: 1...4 ... :51::::::::~::::: > :::::::::::::::::: >:: ::: :::::::::::: ::: 8 ........... Diff 0.25 ~ -.1.81 -1.18 -1.03 -2.07 _ 1 a39 ....'. Returns in Up Markets 10/31 /2000 3 Yr 4 Yr 5 Yr Incept ~isici :::::::::::: 5~ ............................. ............................. . ~`7::::: ............... ............... . ::: i8:~:: ......... ......... ......... ~~1: ............... ............... ............... . ........................... ............................. ............................. #?Qtiey ::::::::::::::: ::: 0:~ :::: .............. ............... ............... ::::~ 1::F:::: ......... ......... #G1:7 : ............... ............... 11:3 Ratio::: ;::: >::::58:'9:::: ::::86:7:::::: :::78:8: ::::::::: X9:9:: 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 `~ti~itl:::'::: .............................. ............................. ............... x'1:9:: :: .............. ............... ............... :: ~~1:~: ......... ........ ......... ~:: g : : ...1. ................ ................ ................ .............. ............................. ............................. # . fi. ~.' ~..:2 o..~'y ..'.'.'.'.' ' '.'.' .'. ~~ ...... ............... ............... >::: r3:8: ........... ........ ......... ~3:8: ................ ................ :~: : :: : X3:8 .. ... .... . . 51::5 ::: a~atici ::: :::::: ............ :::::49A :::: ............... :::49A : ........ :: 4g:0 ..... ......... . 6 Village of Tequesta Public Safety Officers' Fixed Income Universe Comparisons High Quality Bond I ralling Keturns through December 31, 2005 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr Ftar~ .:: :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ~ ~::::::::::::::::::::::::::::::::::::::::: ::::~::::::::::: d.. . ............................................................................................................................................ ............................................................................................................................................ Return 0.54 1.33 0.53 1.77 2.39 4.01 5.22 -tile 30 100 100 84 75 64 49 Poti GY .......... ................. .................. > ::::::: ................. .................. ................. :::::::::::: ............ ............ ............ :::::::: ::: ............ ............ ............ :::::::::::: ............ ............ ............ :::::: ::::: ............ ............ ............ :::: ::~:::>: ............ ............ ............ :::::::::::: ::::::::::::>:>:::::::::::::: :: ............. ............................................. ............................................. Return -0.38 3.04 2.34 3.27 3.74 5.51 6.10 -tile 86 15 29 32 35 18 18 rtia .. . erne ::' :::::::::::::::::: :::::::::~:: :::::: ::::::: ::~:~::::::::::::::::::~::::::::::: :::::::::::::::::::~::::::::::> :::::::::::::::` :::::::::::~: ~. U ...................................................................................................................................... 5th %-tile 1.47 3.52 3.37 4.49 6.61 6.68 7.10 7.64 6.36 6.51 25th %=tile 0.66 2.83 2.41 3.42 4.18 5.24 5.78 6.63 5.50 5.77 50th %-tile 0.07 2.46 2.00 2.84 3.30 4.56 5.17 5.96 4.95 5.23 75th %-tile -0.23 2.09 1.57 2.01 2.39 3.44 4.16 4.79 4.39 4.63 95th %-tile -0.60 1.67 1.09 1.38 1.57 2.10 2.92 3.57 3.57 3.81 Calendar Year Returns Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 tad ...................................................... Return 0.84 0.53 3.03 3.65 9.01 10.20 -tile 8 100 62 61 32 3 Poficy . Return 0.59 2.34 4.21 4.68 11.02 8.51 -tile 36 29 34 35 4 21 .. ....... ..:.:.......... . v s ......:........::.::...:..... .....:.::.::......::...: ,. ,........::....................:.............................. ;:::::... . 5th %-tile 0.90 3.37 6.19 11.51 10.87 9.85 12.37 4.61 9.45 11.75 25th %-tile 0.66 2.41 4.54 5.34 9.37 8.40 10.90 1.75 8.34 9.52 50th %-tile 0.52 2.00 3.69 4.04 7.98 7.81 9.56 -0.45 7.26 8.59 75th %-tile 0.39 1.57 2.13 2.90 5.51 7.00 7.70 -1.46 6.33 7.06 95th %-tile 0.15 1.09 0.98 1.63 1.50 4.93 5.78 -3.67 4.50 5.91 Returns are in percent. "%-tile" is the percentile ranking within the universe. Retums for periods exceeding one year are annualized. Incept is October 31, 2000 to December 31, 2005 7 Village of Tequesta Public Safety Officers' Equity Executive Summary Account Reconciliation 12/31 /2005 2005 10/31 /2000 Qtr YTD Incept `:Segirtii~g Vi~lue :::: _: x;59:7::: ': ~~09: ':::: >: >:::$~$: }`slat Mows :::::::::: :::::::38:: ......................................... ......................................... ............................ ... :::::::'148: ........... ............ ... .. ::::::::::802:: ................ ................ . ......... ......................................... ......................................... ir~restrri:eii4:~GfL:::::::::~::::::: 34 :: ... .. . ............ ........... ::::::: =46: ................ ................ ................ :::::::::::-~9 ~rtdric~ V~lui~ :::::: < ~;fif>~ :: : ': ~,6f}1 : :::: <:::1601' Investment I Index Weight ~ I railing Keturns through December 31, 2005 10/31 /2000 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept Ftitii ::::::::: _ : ~~ 3.99.:: ........................ ........................ _:: .::.. fi 38 .: ........... ............ :'10:22::::: .. . ............. ............ : fl:66 :: - ......... ......... ......... ::::3:45 :::::::::::::: - ........................ ........................ ........................ ::::::::::::::::::::::::::::::::::~::::::::::::::: ::::4: - .......................................................3.. ........................................................... ........................................... ........................ ........................ #?ofi ::::: ::::~ ....:: cy.........4.,91... ........... ............ : ::::... ... 7.85..: ............. ............ :: 3:39 .::: ......... ......... ::~:9~ :: ........................ ........................ ::::b:54::: ::~:::~ :::::: ................ ........................................................... ........................................................... :::::::::::::::::::::::::::::::::::::::::::::::::::::::::0:96 i is DtF... $.9 Q 1. 47 . x:17 :: ~:5$ .. ~: ....3.99. ~ ::: :::::::::~:::::::: ::::~:::::::::: X3:38 Calendar Year Returns 12/31 /2005 2005 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 2.14 3. ~..d .... 99 1:~:... ... 8$ 18..:33 ~7 ~8 :: 13 87 l?.. li.:. 0 2:09.::::::4:91: GY :: : '1:0:88 : ... ::: 2$:: ~ ::: 68 :=2 ::: :: 2.1 ~1 :: ='I:~ . ~ ' ::::::::::::::::::::::: >::::::: >: >::: <:::: `: 88 . 4 23.......8.90 .... . 7.00 . ....1 D_ 35.... ..5 ..1.8.. .....189 ... ............................................ . Returns in Up Markets ~ 10/31 /2000 3 Yr 4 Yr 5 Yr Incept ~~ t+nd ..............19.0 .... ............................. .............................. .... ~.1..4.... .............. ............. ....45.9.. .......... ........... .........15.9 . ............... ............... ............................. t• : ::::::::::::: .:~ PQ iGy......... .23.E . ............... >: ~~.~ .... .......... ::::: ... X4.7 . ............... :...: .......24..E . R i ::::::::::::: ~ at. o ..............80.9 .... ~ ....5fJ.~ .... ``= ... 8~.3:::: ::::::::::::::::::64:8:: 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. Returns in Down Markets 10/31 /2000 3 Yr 4 Yr 5 Yr Incept fi~iitl :::::::: ............... ............... ::::::~9:~::: ............. ............. :::::-2~:~:::::: ................ ............... ::=3~ :2::: ::: .............. ........ .... :~:: <~b:9: .......... P'afi ::::::~::: ~'Y ...... . : X7`:0 ....... X27;7:::::: . .. : ;;3~ :..::::::: .~.. .......... :::~.. :: . 3.0. #~atio::::::::: :::1:36:3 :: ~: :::::82:~4 ::::: . :: ..95,8....... ....93, 6. 8 Village of Tequesta Public Safety Officers' Equity Universe Comparisons Broad Large Cap Growth Trailing Returns through December 31, 2005 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr u. d . Return 3.76 4.59 -3.99 6.38 10.22 -0.66 -3.45 -tile 98 97 100 70 92 91 62 of ::::::::::::: :::::::::::::::::::::::::::::::::::::::::::~:~::::: ::: ::::::::::::::::: :::: P.. Icy.. . ....................................... ...................... ...................... Return 5.77 7.21 4.91 7.85 14.39 3.92 0.54 -tile 83 85 73 52 54 38 22 Ur'W s :::::::::::::::::: :: I.~ e.. 5th %-tile 15.00 20.94 15.98 16.06 22.03 9.22 6.05 6.85 10.80 11.20 25th %-tile 10.30 14.56 10.65 11.19 17.61 5.31 0.16 -1.24 3.86 6.38 50th %-tile 7.81 11.10 7.27 8.02 14.81 2.59 -2.27 -4.10 0.97 4.08 75th %-tile 6.30 8.60 4.64 5.70 12.38 0.62 -4.62 -6.35 -1.00 2.31 95th %-tile 4.13 5.09 1.30 2.72 9.54 -1.37 -7.86 -9.83 -3.60 -0.01 Calendar Year Returns I . ::::::::::::::::::::::::::::::::::::::::::~::::_::::::::::::::_:::::_:::::::_::::::::::;::::::::::::::::::::::::; :::::::::::::::;::::::::::::~::::::::::_:: tool cy :............. ................. :: .:: :: :........... . Return -tile 2.09 76 4.91 73 10.88 27 28.68 39 -22.10 22 -11.88 10 1::::::: .: . . tln.verse . . ................ 5th %-tile 6.63 15.98 17.21 40.85 -15.79 -9.94 -0.22 66.15 50.95 37.03 25th %-tile 4.03 10.65 11.08 31.14 -22.77 -14.91 -7.14 43.89 37.77 31.69 50th %-tile 3.14 7.27 8.09 27.09 -25.90 -19.23 -11.77 32.72 31.70 27.88 75th %-tile 2.13 4.64 5.59 24.31 -29.82 -23.97 -17.62 24.68 25.56 23.30 95th %-tile 0.48 1.30 2.15 20.51 -34.42 -32.11 -26.13 15.29 14.10 13.67 Returns are in percent. "%-tile" is the percentile ranking within the universe. Retums for periods exceeding one year are annualized. Incept is October 31, 2000 to December 31, 2005 9 Village of Tequesta Public Safety Officers' Pension Trust Fund Up Market Returns 20.00% 15.00% ------------------------------------- 10.00% ---- ----- - 5.00% --- -- - 0 0.00 /0 3 Yr 4 Yr 5 Yr Incept I Fund (%) 11.23 7.40 9.53 9.53 Policy (%) 14.07 13.58 14.58 14.58 'I Difference (%) -2.84 -6.18 -5.05 -5.05 Ratio 79.82 54.49 65.36 65.36 # Up Qtrs 9.00 11.00 13.00 13.00_ Down Market Returns o.oo°io -- -5.00% ------ - -- -10.00% ------------- -- -15.00% - ---- --------- _~n nnoi Fund (%) Policy (%) Difference (%) Ratio # Down Qtrs 3 Yr -4.87 -2.61 -2.26 186.59 3.00 4 Yr -9.20 -12.85 3.65 71.60 5.00 ^ Fund (%) ~ Policy (%) Rockwood assumed account on April 4th 2005 5 Yr -13.67 -15.52 1.85 88.08 7.00 Incept -13.35 -15.50 2.15 86.13 7.66 10 Village of Tequesta Public Safety Officers' ~~ Pension Trust Fund I', ~ Objective Comparison 1 1 ii Inception date is October 31, 2000 All dollar values are shown in thousands. Rockwood assumed account on April 4th 2005 11 UVV IVIV 1 JV I JV I UU I IVIUL JVL JUL UVL IVIVJ JUJ JVJ VVJ rvIVY JVY JVV vVY IVIVJ JvJ JV:J VVJ Quarter Ending ^ Fund ,~ Policy $ Nominal 8% ^ CPI + 3% Village of Tequesta Public Safety Officers' Pension Trust Fund I' 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 1 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. i~ i~ i~ i~ i~ i~ n ii i~ ii i~ „ Village of Tequesta Public Safety Officers' Pension Trust Fund Attribution of Returns Attribution of Performance to show Manager Contribution Policy :::: ::::iVla~iager' Car~f~itiktioii ; Fund Current Quarter 1.46 : . . :: ::: : : : :::::::::::::::::: =23Z:: .................................. .................................. .................................. .................................. .................................. -0.86 Year to Date 3.91 : :: :~~:~$ -1.57 3 Years 9.41 : : ~2:81a : 6.52 4 Years 4.56 : . . ::::::::::::::::: :::: =2:65 : .................................. .................................. .................................. .................................. 1.91 5 Years 2.99 : . ::::: ::::::::~::::::::::::::: :=2:22: .................................. .................................. 0.77 Incept 2.34 :::::::::::::: :::::::::::::;1:93:: 0.41 Policy + Manager Contribution =Fund Attribution of Manager Contribution between Asset Allocation and Security Selection Asset Allocation Security Selection 1~l~ii~ger Caiitciluti~ri Current Quarter -0.75 -1.57 =2:32 Year to Date -1.94 -3.54 =5:48 3 Years -4.64 1.75 X2:$9 4 Years -2.12 -0.53 .. .. .. .. :::::::::: .::::: ~-2:65:: ................................. ................................ ................................. ................................ 5 Years -1.47 -0.75 ::: .. .. .. .. :::::: ::::::::::::::::::2:22 ................................. ................................ ................................. ................................ Incept -1.23 -0.70 =~ :93 Asset Allocation + Security Selection = Manager Contribution Rockwood assumed account on April 4th 2005 13 ~ Village of Tequesta Public Safety Officers' Pension Trust Fund Asset Allocation Effect ° 10.00 /o 1 P e 5.00% r c e n t 0.00% E f I f e -5.00% c t -10 00°/ ' ° M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 DC Quarter Ending 1 Security Selection Effect 10.00% 1 P 1 e 5.00% - - - - r c e ' n t 0.00% E f f e -5.00% ---- ---- -------- ------------ --- -- ---- ---- --- --- -------------------------------------------------------------------------------------------- c t 1 -10.00% M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 D0. Quarter Ending ' f ~ Quarterly Effect Cumulative Effect Rockwood assumed account on April 4th 2005 1 14 Village of Tequesta Public Safety Officers' Pension Trust Fund Asset Allocation vs Targets 60 50 30 20 10 0 M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 D05 Quarter Ending ~ Cash & Equiv ~ Target OV.VU %o - -------------------------------------- --------------------- -- ----------- -------------------- 50.00% - -- ---------------- ------------ ----- ------------------------------------------------------------------------ ------------- 40.00% -- --------- ------------ -- --- -- ------ - ----- - - ---- - -_ - - - 10.00%r1 - -1. C-_ __1 ~ I-- C_ --1. C- C-_ __1 ~ C- 1. I1 ~ C_ 1 0.00% ~ ~ ~ M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 D05 Quarter Ending ^ Fixed Income ~ Target Rockwood assumed account on April 4th 2005 15 MUl JUl JUl UUI MVL JVL JUL UUL IVIVJ JVJ JUJ UV3 IVIV4 JVV JV4 VVY IVIVJ JVJ JVJ VVJ Quarter Ending ~ Equity ~ Target i ~ Village of Tequesta Public Safety Officers' Pension Trust Fund I~I' Manager Contribution ~' 10.00% ' 5.00% ' R e t 0.00% ' u r n ' -5.00% 10 00°/ ° M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 504 D04 MU5 JU5 SUb uu5 Quarter Ending ~ Quarterly Cumulative Growth of $100 Fund vs Policy v ~ a u $ e 1 ' Rockwood assumed account on April 4th 2005 Quarter Ending ^ Fund ^ Policy 16 ~ Village of Tequesta Public Safety Officers' Pension Trust Fund Quarterly Comparison Analysis ($) 1 Period Ending Fund Policy Dill 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 2,911 3,149 -238 3,752 -841 3,422 -511 All dollar values are shown in thousands. Rockwood assumed account on April 4th 2005 ' 17 i~ ~ Village of Tequesta Public Safety Officers' Pension Trust Fund Quarterly Comparison Analysis (%) Fund Policy Diff Nominal 8% Diff CPI + 3% Diff End ng 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 -0.86 1.46 -2.32 1.94 -2.80 -0.26 -0.60 Incept. 0.41 2.34 -1.93 8.00 -7.59 5.44 -5.03 Returns for periods exceeding one year are annualized. Rockwood assumed account on April 4th 2005 18 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 QuarterlBest 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 RatioITreynor 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. ii ii i i ,s ~ Village of Tequesta Public Safety Officers' Pension Trust Fund Risk Measures ............................ 3:Yr ::::::::: ~ :::::: ............ :::::Fu~ici: ...... ............ :::: I?olicji: ............ ::: :::Dif€ # of Negative Qtrs 3.00 3.00 0.00 # of Positive Qtrs 9.00 9.00 0.00 Batting Average 58.33 41.67 16.66 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 -1.57 3.91 -5.48 Standard Deviation 6.38 5.30 1.08 Beta 0.90 1.00 -0.10 Annualized Alpha -1.85 0.00 -1.85 R-Squared 0.56 1.00 -0.44 Sharpe Ratio 0.74 1.44 -0.70 Treynor Ratio 5.28 7.64 -2.36 Tracking Error 4.30 0.00 4.30 Information Ratio -0.67 ............................ 4 ~r ~~ ::::::::: ............ :::::~tii~d: ............ :: ::Pti1:i ..: ............. : aiff # of Negative Qtrs 7.00 5.00 2.00 # of Positive Qtrs 9.00 11.00 -2.00 Batting Average 56.25 43.75 12.50 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 6.30 7.11 -0.81 Beta 0.61 1.00 -0.39 Annualized Alpha -1.46 0.00 -1.46 R-Squared 0.48 1.00 -0.52 Sharpe Ratio 0.03 0.40 -0.37 Treynor Ratio 0.26 2.81 -2.55 Tracking Error 5.34 0.00 5.34 Information Ratio -0.50 ............................ 5:1!:r .:::::::: : :::::::::::::::::::::: ............ ::::: F:u:rii:: .. ............ ::::: Policj+: ............ :::::::: Diff :: # of Negative Qtrs 9.00 7.00 2.00 # of Positive Qtrs 11.00 13.00 -2.00 Batting Average 60.00 40.00 20.00 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 6.91 7.82 -0.91 Beta 0.68 1.00 -0.32 Annualized Alpha -1.89 0.00 -1.89 R-Squared 0.59 1.00 -0.41 Sharpe Ratio -0.21 0.10 -0.31 Treynor Ratio -2.12 0.78 -2.90 Tracking Error 5.11 0.00 5.11 Information Ratio -0.43 ............................ :Trice t :::: »>: > ::::::::: :: ~ ......... ............ :: :Fttrid : ............ : :::Pofic y. ............. >:Diff . .......... # of Negative Qtrs 9.66 7.66 2.00 # of Positive Qtrs 11.00 13.00 -2.00 Batting Average 61.28 38.72 22.56 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 7.09 7.90 -0.81 Beta 0.70 1.00 -0.30 Annualized Alpha -1.86 0.00 -1.86 R-Squared 0.61 1.00 -0.39 Sharpe Ratio -0.27 -0.00 -0.27 Treynor Ratio -2.77 -0.01 -2.76 Tracking Error 5.06 0.00 5.06 Information Ratio -0.38 Rockwood assumed account on April 4th 2005 ' 20 s.oo°i° ~.oo°i° 6.00% ' 5.00% A ' n n u a I 4.00% i z e d 3.00% R e t u r 2.00% n ' 1.00% 0.00% ' -1.00°~ 0 Village of Tequesta Public Safety Officers' Pension Trust Fund Return vs Risk through December 31, 2005 ~ LB Gov/Cor ~ 3 Mo TBill F nd 0% 5.00% 10.00% 15.Op~P 500 20.00% 25.0 Risk (Annualized Std Dev) ~ Policy Rockwood assumed account on April 4th 2005 21 0% Village of Tequesta Public Safety Officers' Pension Trust Fund Return vs Risk through December 31, 2005 3 Years 4 Years 20.00% 0 15.00% R e t 10.00% u r n s 5.00% 0 00°/ Fund Gov/Corp 3 Mo TBill i i i ~S&P ° 1.00% 3.00% 5.00% 7.00% 9.00% 11.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% Risk (Annualized Std Dev) 5 Years 8.00% 7.00% 6.00% R 5.00% e t 4.00% u r n 3.00% s 2.00% 1.00% 0.00° o .00% 5.00% 10.00% 15.00% 20.00% Risk (Annualized Std Dev) 6.50 /o 6.00% 5.50% 5.00% R 4.50% e t 4.00% u r 3.50% n s 3.00% 2.50% 2.00% 1.50°0 .00% 5.00% 10.00% 15.00% 20.00% Risk (Annualized Std Dev) 8.00% 7.00% 6.00% 5.00% R e 4.00% t u 3.00% r n 2.00% s 1.00% 0.00% -1.00% Inception LB 3 Mo TBill { ~E 5.00% ~0% 0.00% 10.00% 20.00% Risk (Annualized Std Dev) { Policy Rockwood assumed account on April 4th 2005 22 Village of Tequesta Public Safety Officers' Pension Trust Fund Policy: 10/31/2000-12/31/2005 55.00 S&P 500 35.00 Lehman GovlCredit Bond 10.00 Citigroup Treasury Bill - 3 Month First Objective: 10/31/2000-12/31/2005 Annual Return of 8.00% Second Objective: 10/31/2000-12/31/2005 100.00 US Consumer Price Index + 3.00 annual adder Universe Data: 55% Lg Cap Core, 35% Hg Quality Bd, 10% Cash 10/31/2000-12/31/2005 35.00 High Quality Bond 55.00 Pure Large Cap Core 10.00 Government Money Market 23 Bogdahn Consulting, LLC. CONTRIBUTIONS/WITHDRAWALS Vllage of Tequesta-PSO Custodian- Salem Trust Rockwood Capital Advisors From 10-01-OS To 12-31-OS Tran Trade Settle Code Date Date Security Amount Quantity CONTRIBUTIONS li 10-12-OS 10-12-05 Cash 16,513.97 ER li 10-12-OS 10-12-OS Cash 80.39 EE li 10-12-OS 10-12-OS Cash 131.00 ER li 10-12-OS ]0-12-OS Cash 166.79 EE li 10-12-OS ]0-12-OS Cash 271.79 ER li 10-12-OS 10-12-OS Cash 195.08 EE li 10-12-OS 10-12-OS Cash 310.26 ER li 10-12-OS 10-12-OS Cash 5,162.92 ER li 10-12-OS 10-12-OS Cash 3,263.33 EE li 10-31-OS 10-31-OS Cash 3,497.90 EE li 10-31-OS 10-31-OS Cash 5,557.14 ER li 11-09-OS 11-09-OS Cash 4,136.51 EE li 11-09-OS 11-09-OS Cash 6,590.55 ER li I1-21-OS 11-21-OS Cash 3,738.94 EE li 11-21-OS 11-21-OS Cash 5,946.43 ER li 12-OS-OS 12-OS-OS Cash 4,036.91 EE li 12-OS-OS 12-OS-OS Cash 6,414.14 ER h 12-19-OS 12-19-OS Cash 3,516.09 EE li 12-19-OS ]2-19-OS Cash 5,660.44 ER li 12-28-OS 12-28-OS Cash 9,098.58 Recd from Wachovia, initial funding monies li 12-30-OS 12-30-OS Cash 6,134.71 ER li 12-30-OS 12-30-OS Cash 3,909.64 EE WITHDRAWALS l0 11-18-OS 11-18-OS Cash 2,000.00 BC for period ending 9/30/05 Broker Code Commission Bogdahn Consulting, LLC. CONTRIBUTIONS/WITHDRAWALS Village of Tequesta-PSO Custodian- Salem Trust Rockwood Capital Advisors From 10-01-OS To 12-31-OS Tran Trade Settle Code Date Date Security Amount Quantity l0 11-18-OS 11-18-05 Cash 300.90 Business Services Connection for minutes of 8/11/05 meeting l0 11-18-OS 11-18-05 Cash 360.60 Attorney fee to Hanson, Perry & Jensen l0 12-12-OS 12-12-05 Cash 7,102.42 Lump Sum Benefit payment J. Fleming l0 12-12-OS 12-12-OS Cash 1,775.60 Federal withholding on Benefit payment l0 12-15-OS 12-15-OS Cash 3,218.00 Accordia Southeast Palm Beach l0 12-28-OS 12-28-OS Cash 25.00 Wire Fee l0 12-28-OS 12-28-OS Cash 9,098.58 Wire Transfer to First National 23,881.10 EXPENSE ACCOUNTS 0.00 AFTER FEE PERFORMANCE EXPENSE ACCOUNTS dp 11-03-OS 11-03-OS Administration Fee 750.00 Custodial fee to Salem Trust 750.00 PORTFOLIO NET TOTAL 69,702.41 EXPENSE ACCOUNTS PAID BY CLIENT AFTER FEE PERFORMANCE EXPENSE ACCOUNTS PAID BY CLIENT 0.00 0.00 GRAND TOTAL 69,702.41 Broker Code Commission 2 Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL Village of Tequesta-PSO Custodian- Salem Trust Rockwood Capital Advisors December 31, 2005 (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 46.42 37,832.30 930.89 1.3 620.000 BOEING CO COM 58.58 36,317.99 70.24 43,548.80 7,230.81 1.5 1,000.000 Baxter International, Inc. 36.58 36,579.60 37.65 37,650.00 1,070.40 1.3 800.000 Caterpillar Inc 44.77 35,812.00 57.77 46,216.00 10,404.00 1.6 ' 560.000 DEERE & CO COM 64.81 36,293.60 68.11 38,141.60 1,848.00 1.3 500.000 Entergy Corp 72.02 36,010.00 68.65 34,325.00 -1,685.00 1.2 3,080.000 Goodyear Tire & Rubber 11.72 36,109.92 17.38 53,530.40 17,420.48 1.8 840.000 HalliburtonCo. 43.97 36,936.82 61.96 52,046.40 15,109.58 1.8 ' 610.000 Lockheed Martin Corp. 59.24 36,136.40 63.63 38,814.30 2,677.90 1.3 510.000 Loews Corp. 71.47 36,448.68 94.85 48,373.50 11,924.82 1.7 1,050.000 PG & E Corp. 34.97 36,721.55 37.12 38,976.00 2,254.45 1.3 1,720.000 Safeway Inc. COM 22.29 38,341.72 23.66 40,695.20 2,353.48 1.4 1,760.000 Schering Plough Corp 20.74 36,504.16 20.85 36,696.00 191.84 1.3 Corn 1,580.000 Sprint Nextel 23.01 36,357.85 23.36 36,908.80 550.95 1.3 1,265.000 Texas Instmments 33.58 42,483.38 32.07 40,568.55 -1,914.83 1.4 ' 880.000 Walgreen Co. 45.44 39,986.58 44.26 38,948.80 -1,037.78 1.3 593,941.66 663,271.65 69,329.99 22.8 Mid Cap 620.000 APACHE CORP COM 58.99 36,573.80 68.52 42,482.40 5,908.60 1.5 970.000 Apartment Inventory & 38.98 37,805.94 37.87 36,733.90 -1,072.04 1.3 Management Co - Reit 3,090.000 Centerpoint Energy Inc. 11.86 36,647.40 12.85 39,706.50 3,059.10 1.4 1,790.000 Chesapeake Energy 20.50 36,695.00 31.73 56,796.70 20,101.70 2.0 ' Corp. 3,540.000 El Paso Corp 10.38 36,744.85 12.16 43,046.40 6,301.55 1.5 960.000 FISERV INC COM 43.76 42,009.98 43.27 41,539.20 -470.78 1.4 1,305.000 HCC Insurance 28.05 36,603.42 29.68 38,732.40 2,128.98 l.3 ' Holdings Inc Com 1,020.000 Indymac Bancorp Inc 36.12 36,842.40 39.02 39,800.40 2,958.00 1.4 860.000 MCKESSON HBOC 45.92 39,488.79 51.59 44,367.40 4,878.61 1.5 ' 740.000 INC COM Murphy Oil Corp Com 51.35 37,999.00 53.99 39,952.60 1,953.60 1.4 575.000 Price T Rowe Assoc Inc 67.51 38,819.00 72.03 41,417.25 2,598.25 1.4 Com 960.000 Protective Life Corp. 38.56 37,022.21 43.77 42,019.20 4,996.99 1.4 ' 780.000 Rockwell Collins Inc. 46.61 36,356.03 46.47 36,246.60 -109.43 1.2 2,165.000 Seagate Technology 18.89 40,896.85 19.99 43,278.35 2,381.50 I.5 Holdings 590.000 Simon PPTY Group Inc. 62.30 36,757.00 76.63 45,211.70 8,454.70 1.6 2,105.000 TECO Energy, Inc. 17.33 36,484.91 17.18 36,163.90 -321.01 1.2 COM 603,746.58 667,494.90 63,748.32 22.9 Small Cap 1,100.000 Landstar Systems Inc. 32.79 36,069.00 41.74 45,914.00 9,845.00 1.6 1,340.000 Performance Food 29.50 39,529.46 28.37 38,015.80 -1,513.66 1.3 Group 1 Quantity Security 960.000 Precision Castparts Corp. 1,280.000 Swift Energy Co INTERNATIONAL EQUITIES Foreign Stock Foreign 935.000 Canadian Pacific Railway Ltd. NEW 850.000 Volvo Aktiebolaget ADR CL B FIXED INCOME Government Bonds 100,000 Federal Home Loan Mortgage Corp 3.500% Due 09-15-07 115,000 FNMA Preassign 4.250% Due 09-28-07 25,000 FHLB 5.250% Due 02-13-09 50,000 FEDERAL HOME LN MTG CORP 5.750% Due 03-15-09 50,000 FHLB 4.100% Due 03-30-09 70,000 US Treasury Note 6.000% Due 08-15-09 105,000 FEDERAL NATL MTG ASSN 5.500% Due 03-15-11 50,000 Federal Home Loan Bank Bond 4.700% Due 10-04-1 I 45,000 U S Treasury Notes 4.000% Due 02-15-15 15,000 United States Treasury Note 4.125% Due OS-15-15 Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL Vllage of Tequesta-PSO Custodian- Salem Trust Rockwood Capital Advisors December 31, 2005 (Excluding Reinvested Divs.) Unit Total Market Pct. Cost Cost Price Value Gain/Loss Assets 37.69 36,181.58 51.81 49,737.60 13,556.02 1.7 29.27 37,461.38 45.07 57,689.60 20,228.22 2.0 149,241.42 191,357.00 42,115.58 6.6 1,346,929.66 1,522,123.55 175,193.89 52.3 1,346,929.66 1,522,123.55 175,193.89 52.3 44.44 41,555.89 41.95 39,223.25 -2,332.64 1.3 43.66 37,111.00 47.09 40,026.50 2,915.50 l.4 78,666.89 79,249.75 582.86 2.7 78,666.89 79,249.75 582.86 2.7 78,666.89 79,249.75 582.86 2.7 100.08 100,082.76 98.06 98,062.50 -2,020.26 3.4 99.38 114,281.25 99.03 113,885.94 -395.31 3.9 99.20 24,799.78 101.38 25,343.75 543.97 0.9 104.33 52,165.15 102.94 51,468.75 -696.40 1.8 100.00 50,000.00 98.13 49,062.50 -937.50 1.7 108.31 75,818.75 105.39 73,773.42 -2,045.33 2.5 105.68 110,958.75 103.38 108,543.75 -2,415.00 3.7 100.00 50,000.00 97.88 48,937.50 -1,062.50 1.7 100.18 45,079.10 96.95 43,628.90 -1,450.21 1.5 97.61 14,641.40 97.81 14,671.29 29.89 0.5 2 Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL Village of Tequesta PSO Custodia~r- Salem Trust Rockwood Capital Advisors December 31, 2005 (Excluding Reinvested Divs.) Unit Total Market Pct. Quantity Security Cost Cost Price Value Gain/Loss Assets 69,408 Federal Nat'I Mtg Assn 94.19 65,373.70 94.18 65,368.49 -5.21 2.2 Pool #835760 4.500% Due 09-01-35 703,200.64 692,746.78 -10,453.86 23.8 Accrued Interest 9,816.19 0.3 703,200.64 702,562.97 -10,453.86 24.1 FNMA 49,819 Federal National 102.24 50,935.92 101.04 50,339.03 -596.89 1.7 Mortgage Assn. Pool# 735503 6.000% Due 04-01-35 Accrued Interest 249.09 0.0 50,935.92 50,588.13 -596.89 1.7 GNMA 99,167 GNSFPooI#599190 103.87 103,009.49 102.41 101,552.98 -1,456.51 3.5 6.000% Due 03-15-35 119,641 GNSF Pool #640208 105.78 126,557.70 104.39 124,890.21 -1,667.50 4.3 6.500% Due 03-15-35 103,043 GNSF Pool #640896 107.47 110,739.45 104.96 108,156.93 -2,582.52 3.7 7.000% Due 04-15-35 79,056 GNSF Pool #641273 97.81 77,326.64 95.97 75,869.04 -1,457.60 2.6 4.500% Due 04-15-35 417,633.29 41Q469.16 -7,164.13 14.1 Accrued Interest 1,088.77 0.0 417,633.29 411,557.93 -7,164.13 14.1 1,171,769.85 1,164,709.03 -18,214.88 40.0 CASH & EQUIV. Cash Accounts Cash & Equiv. Cash 10,044.35 10,044.35 0.00 0.3 10,044.35 10,044.35 0.00 0.3 Money Markets 134,881 Goldman Sachs 1.00 134,881.35 1.00 134,881.35 0.00 4.6 Fin.Sq.Treasury Oblib. Admin 134,881.35 134,881.35 0.00 4.6 144,925.70 144,925.70 0.00 5.0 TOTAL PORTFOLIO 2,742,292.10 2,911,008.03 157,561.87 100.0 3