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Home My WebLink AboutDocumentation_Pension Public Safety_Tab 06C_02/10/2004Investment Review VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND February 10, 2004 Representing Northstar Capital Management, Inc. Peter V. Van Beuren Principal NORTHSTAR CAPITAL MANAGEMENT, INC. INVESTMENT COUNSEL 4400 PGA Boulevard. Suite 600 Palm Beach Gardens, Florida 33410 (561) 775-5880 (561) 775-5909 FAX TABLE O :, Section 1: An Overview of Northstar Capital Management, Inc. Section 2: Investment Philosophy & Strategy A. Quality Growth Equity Management B. Fixed Income Management Section 3: A. B. C. D. E. Section 4: Fii A. B. Summary of Investment Guidelines Portfolio Status Equity Characteristics Performance Results Cash Flow Figures uncial Outlook Financial Market Review Economic Benchmarks Section 5: December 31, 2003 Valuation Section 6: Purchase & Sale Report Section 7: Proxies Section 8: Corporate Biographies NORTHSTAR CAPITAL MANAGEMENT FIRM STRUCTURE & HISTORY --~ Structure - Narthstar Capital Management, Inc. is 100% employee owned. The firm has four principal owners who also serve as the firm's board of directors. -~ Board of Directors - H. Kent Mergler, CFA, CIC -President - Robert G. Jacobsen, CFA, CIC -Senior Vice President - Peter V. Van Beuren -Senior Vice President - Stephen K. Mergler, JD -Vice President ---~ History - Northstar has offered the same investment style and service since our Team was established in 1992. Originally, our group was an autonomous product team and profit center of a national firm. As that firm restructured in preparation for sale to a foreign entity, we elected to acquire our operation to maintain the integrity of our product and our independence. 1-1 NORTHSTAR QUALITY GROWTH EQ UITY MANAGEMENT TEAM Name Title and Responsibility Epp Education Dcgrec Ycar Brandon A. Dorsey Equity Trader 11 Boston College BS 1994 Robert G. Jacobsen, CFA, CIC Senior Vice President and Portfolio Manager 33 Georgia State University Eileen McCarthy Vice President and Portfolio Manager 34 University of Illinois N H. Kent Mergler, CFA, CIC President and Portfolio Manager Stephen K. Mergler, JD Meg R. Shea Vice President and Portfolio Manager Vice President and Marketing Contact 41 University of Cincinnati 8 University of Florida 14 St. Mary's College of Calif MBA 1971 BA 193 MBA 1964 JD 1991 BS 1987 Peter V. Van Beuren Senior Vice President and Portfolio Manager 40 Colgate University BA 1961 Selected members of the Group comprise the Investment Management Team for the quality growth equity product. That Investment Management Team meets regularly to establish parameters for, and to evaluate the composition of, quality growth accounts. However, the portfolio managers for any particular account ultimately have the discretion to pluchase and sell securities for that account. NORTHSTAR QUALITY GROWTH EQUITY MANAGEMENT Investment Philosophy ~ We believe high quality, high earnings growth companies provide superior investment returns over full market cycles Investment Process ^ Investment research screens help identify "wealth creators" ^ Fundamental, bottom-up analysis is performed to target companies with growth characteristics ~ A portfolio of approximately 30 names representing the "best ideas" of our portfolio management team is selected ^ Holdings are monitored to assure competitive advantage and growth characteristics ~ Analysis of market characteristics is used to monitor current holdings and to screen our universe for new buy ideas 2-1 NORTHSTAR QUALITY FIXED INCOME MANAGEMENT Portfolio Construction -Fixed Income ^ Primary focus on investment grade debt securities. ^ Debt securities include: Asset and Mortgage Backed Securities Commercial Paper Convertible Bonds Corporate Bonds and Notes Government Issues, including Agencies Municipal Bonds ^ Yield spreads vs. Treasury bonds are monitored and evaluated by sector, industry and issue to identify relative value. ^ We avoid interest rate speculation but will seek to capitalize on secular interest rate trends. Fixed Income Portfolio Characteristics We attempt to add value through: ^ Yield Advantage (verses benchmark index) ^ Above Average Call Protection (consistent with interest rate and economic outlook) ^ Appropriate Volatility (consistent with benchmark index) ^ Prudent Duration (gradual adjustments with a bias towards intermediate and long-term securities) 2-2 i~ i~ ~ Fixed Income - ~ Building a Client Portfolio 2-3 VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND Summary of Investment Guidelines Investment Objectives: Reasonable consistency of return and protection of assets against the inroads of inflation are paramount. However, the volatility of interest rates and securities markets make it necessary to judge results within the context of several years rather than over short periods of one or two years or less. Long Term Asset Mix Guidelines: Fixed Income Securities Equities (Including Convertible Issues & Foreign Securities) Cash Equivalents (under 1 yr maturity) Limitations and Restrictions: MAXIMUM MINIMUM 60% 35% 60% 0% 50% 0% Equities both foreign and domestic including convertible bonds should not exceed 60% of fund assets at cost No more than 10% in foreign securities No short selling, security lending, private placements, lettered stock or real estate No speculating infixed income or interest rate futures No bonds below top four grades -but only 25% permitted in BAA No more than 5% in capital stock of any one issuing company No more than 5% of aggregate investment of any one issuing company No repurchase agreements No investments prohibited under Florida Statutes 112.661 Benchmarks: Equities: S&P 500 Index (60%) Fixed Income: Lehman Brothers Intermediate Bond Index (40%) (Lehman Bros. Government/Credit Intermediate Bond Index) 3-1 VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND PORTFOLIO STATUS PORTFOLIO STATUS: AS OF December 31, 2003 Asset Mix Cash Equivalents Equities Bonds Income Estimated Annual Yield of 6.2 57.4 36.4 2.6 Equity Characteristics 2004 Price Earnings Multiple Projected 5-Year Earnings Growth 2003 Return on Equity Current Yield Portfolio 26.8 X 17.6 21.2 0.6 S&P 500 Index 18.4 X 7.0 17.8 1.5 Diversification Summary Consumer Discretion Consumer Staples Energy Financials Health Care Industrials Information Tech Materials Telecommunications Utilities Portfolio 20.1 6.0 0.0 23.5 18.2 6.7 22.3 0.0 3.2 0.0 100.0% S&P 500 Index 11.3% 11.0 5.8 20.7 13.3 10.9 17.7 3.0 3.4 2.9 100.0% Fixed Income Characteristics Duration Average Maturity Yield to Maturity Average Quality Leman Bros. Govt/Credit Portfolio Intermediate Index 5.9 Yrs 3.8 Yrs 7.2 Yrs 4.5 Yrs 4.4 % 3.2 AAA/Aa2 Aa2 3-2 FUNDAMENTAL CHARACTERISTICS OF THE CURRENT HOLDINGS IN THE VILLAGE OF TEQUESTA PUBLIC SAFETY OF PORTFOLIO w w 12/31 /2003 Comoanv Name 5 Yr EPS 1 Yr EPS IBES Forward Estimated Symbol Historical Historical 5Yr Fut 4 Qtrs P/E to Current Current Growth I%- Growth (%- Growth I%1 P/E (x- Growth ROE I%1 Yield I%1 AMBAC FINANCIAL GROUP INC ABK 17.63 18.68 14.00 11.50 0.80 14.68 0.63 AMGEN INCORPORATED AMGN 15.73 7.48 21.00 26.00 1.20 10.04 0.00 APOLLO GROUP INCORPORATED APOL 38.76 46.49 25.00 36.50 1.50 25.78 0.00 AMERICAN EXPRESS COMPANY AXP 7.59 19.25 12.00 18.60 1.50 20.45 0.83 BED BATH & BEYOND INCORPORATED BBBY 31.13 27.96 20.00 29.30 1.50 22.48 0.00 BEST BUY COMPANY INCORPORATED BBY 31.33 18.03 15.00 19.20 1.30 24.69 0.77 CAPITAL ONE FINANCIAL CORPORATION COF 31.00 32.07 15.00 11.40 0.80 21.98 0.17 COACH INCORPORATED COH 43.17 66.36 18.00 31.50 1.70 40.92 0.00 CISCO SYSTEMS INCORPORATED CSCO 15.27 51.28 15.00 32.70 2.20 15.18 0.00 DELL INCORPORATED DELL 15.36 29.73 15.00 28.30 1.90 47.17 0.00 GENENTECH INCORPORATED DNA 21.15 25.00 25.00 63.20 2.50 8.71 0.00 EBAY INCORPORATED EBAY 110.18 78.26 35.00 62.10 1.80 9.70 0.00 GENERAL ELECTRIC COMPANY GE 9.01 -12.58 10.00 19.60 2.00 20.32 2.58 RAREFY-DAVIDSON INCORPORATED HDI 30.25 32.96 18.00 17.30 1.00 29.27 0.67 INTERNATIONAL GAME TECHNOLOGY IGT 27.23 32.10 15.00 26.80 1.80 24.00 0.28 LOWES COMPANIES INCORPORATED LOW 28.48 28.74 18.00 21.00 1.20 19.86 0.22 MOODYS CORPORATION MCO 23.59 23.33 15.00 24.40 1.60 NMN 0.50 MEDTRONIC INCORPORATED MDT 16.13 16.15 16.00 26.90 1.70 23.25 0.60 MARVELL TECHNOLOGY GROUP LTD MRVL NMN NMN 30.00 31.30 1.00 0.79 0.00 MICROSOFT CORPORATION MSFT 14.36 2.11 10.00 23.00 2.30 17.45 0.58 NETWORK APPLIANCE INCORPORATED NTAP 26.13 76.47 25.00 43.50 1.70 10.63 0.00 NEXTEL COMMUNICATIONS CL A NXTL NMN NMN 15.00 16.00 1.10 30.21 0.00 PFIZER INCORPORATED PFE 26.07 11.43 14.00 16.90 1.30 24.64 1.92 PROCTER & GAMBLE COMPANY PG 9.92 12.23 11.00 21.00 1.90 36.15 1.82 STARBUCKS CORPORATION SBUX 24.50 24.07 20.00 37.70 1.90 13.90 0.00 STRYKER CORPORATION SYK 23.42 27.44 20.00 31.80 1.60 24.60 0.16 SYMANTEC CORPORATION SYMC 21.36 19.33 17.00 29.70 1.70 16.93 0.00 TEVA PHARMACEUTICAL ADR TEVA 40.46 50.74 24.00 23.30 1.00 28.24 0.41 WACHOVIA CORPORATION WB -1.73 18.22 10.00 12.60 1.30 13.35 3.00 WELLS FARGO & COMPANY WFC 13.50 10.22 12.00 14.40 1.20 19.21 3.06 WAL-MART STORES INCORPORATED WMT 16.21 12.64 14.00 23.20 1.70 20.97 0.68 Portfolio Avera e 25.08 27.80 17.55 26.80 1.54 21.19 0.61 S&P 500 INDEX WITH OPERATING EPS SPX 1.79 17.70 7.00 18.40 2.63 17.77 1.49 Portfolio Data / S&P Data 14.01 1.57 2.51 1.46 0.59 1.19 0.4087465 i .... .. VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND TOTAL RETURNS 10/31 /97- 10/31 /97- 10/31 /97- 9/30/02- 12/31 /02- 9/30/03- 9/30/00 9/30/03 9/30/03 9/30/03 12/31 /03 12/31 /03 3 Years 5 Years Since Inception 1 Year Calendar Year Quarter Equities + g6.4 + 29.2 + 38.3 + 7.9 + 19.2 + 6.5 S&P 500 Index + 63.2 - 4.8 + 18.3 + 24.3 + 28.6 + 12.1 W Bonds + 13.5 + 37.0 + 44.9 + 5.8 + 4.1 - 0.3 Lehman Bros. Govt/Credit + 16.8 + 42.5 + 51.1 + 6.0 + 4.3 - 0.1 Intermediate Index Total Portfolio + 54.5 + 29.6 + 38.3 + 6.7 + 11.5 + 3.4 60% S&P 500/ 40% Govt./Credit Index + 44.6 + 14.1 + 31.4 + 17.0 + 18.9 + 7.3 NSTZZ102 02/03/2004 10:29 Page 1 Sym .SPX-E,USD,NORM Sym2 .SPX-E,USD,NORM Monthly 1553.11 1500.00 1450.00 1400.00 1350.00 1300.00 1250.00 1200.00 1150.00 1100.00 1050.00 1000.00 950.00 900.00 850.00 800.00 750.00 700.00 650.00 600.00 550.00 500.00 450.00 400.00 350.00 286.46 Freq M Intervals Fundamental Date MAl 5 0 ~ MA2 5 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 SAP 500 Performance 2003 Return (Change in Market Value) Average Size by 2003 Market Value Avg (T4Q) 2002 Return Beg of Year EarninQS Return 100 Best Performing Stocks 96% $8.2 B $359 M -40% 101 - 200 46% $14.4 B $841 M -30% 201 - 300 28% $15.4 B $946 M -21 301 - 400 16% $19.3 B $1155 M -20% 100 Worst Performing Stocks -1% $23.7 B $1197 M -17% Total - S8P 500 28.7% -22.1 The 20 Tou Stocks of the SAP 500 in 2003: 2003 Market Value (T4Q) Return Beg of Year Earnin s AVAYA COMMUNICATION 551% $0.80 B -$14 M WILLIAMS COMPANIES 358% $1.14 B -$190 M DYNEGY INCORPORATED 337% $0.43 B -$223 M CORNING INCORPORATED 328% $3.34 B -$388 M PMC-SIERRA INCORPORATED 267% $0.99 B -$49 M NOVELL INCORPORATED 233% $1.19 B -$1 M COMCAST CORPORATION CL A 223% $22.37 B $20 M SANMINA-SCI CORPORATION 201% $2.10 B $8 M AES CORPORATION 195% $1.58 B $110 M YAHOO INCORPORATED 180% $10.07 B $107 M NATIONAL SEMICONDUCTOR CORP 179% $2.77 B $25 M UNITED STATES STEEL CORP 179% $1.32 B $66 M LUCENT TECHNOLOGIES 167% $4.44 B -$613 M NAVISTAR INTERNATIONAL CORP 163% $1.46 B -$36 M FREEPORT-MCMORAN COPPER 8 GOLD 157% $3.15 B $168 M PHELPS DODGE CORPORATION 149% $2.78 B -$130 M NEXTEL COMMUNICATIONS CL A 146% $11.93 B $448 M BROADCOM CORPORATION 138% $4.30 B -$534 M ADVANCED MICRO DEVICES INC 135% $2.18 B -$683 M VERITAS SOFTWARE CORPORATION 133% $6.91 B $159 M 2003 Year 2000 High End Price Price $ 12.94 n/a $ 9.82 $ 48.69 $ 4.28 $ 57.00 $ 10.43 $ 113.10 $ 20.10 $ 245.44 $ 10.53 $ 38,88 $ 32.79 $ 49.63 $ 12.60 $ 57.84 $ 9.44 $ 68.50 $ 45.03 $ 203.63 $ 39.41 $ 77.44 $ 35.02 $ 31.94 $ 2.84 $ 71.38 $ 47.89 $ 46.63 $ 42.13 $ 20.13 $ 76.09 $ 71.88 $ 28.06 $ 79.81 $ 34.02 $ 268.13 $ 14.90 $ 46.13 $ 37.02 $ 168.69 VILLAGE OF TEQUESTA PUBLIC SAFETY CONTRIBUTION S/WITHDRAWALS OCTOBER 1, 2003 TO DECEMBER 31, 2003 October 16 6021.3 8 17 3128.92 23 2,212.01 23 172.00 24 6,322.95 29 894.01 November 04 3, 576.06 10 6,153.52 20 39.51 20 95.97 21 6,491.38 December 04 7,259.23 19 6,929.27 22 102.87 23 411.47 31 7,441.61 $ 49,748.26 $ 7 ,503.90 3-5 VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND Financial Market Review Close Close Close 12/31 /01 12/31 /02 12/31 /03 S&P's 500 Stock Index 1,148.09 879.82 1,111.92 Prime Rate 4.75% 4.25% 4.00% Federal Funds Rate 1.75% 1.25% 1.00% 90 Day U.S. Treasury Bills 1.72% 1.19% 0.92% 5 Year U.S. Govt Notes 4.30% 2.73% 3.25% 10 Year U.S. Govt Notes 5.05% 3.81 % 4.25% 30 Year U.S. Govt Bonds 5.47% 4.76% 5.07% Total Returns 12 Mos. 12 Mos. 12 Mos. 2001 12/31 /02 12/31 /03 S&P 500 Stock Index - 11.9% - 22.1 % + 28.6% Lehman Bros. Govt/Credit + 9.0% + 9.8% + 4.3% Index 4-1 ECONOMIC BENCHMARKS AS OF 02/02/04 1999 2000 2001 2002 2003E 1. Real G.D.P. % 4.20 3.50 0.50 2.40 3.00 2. C.P.I. % 2.20 2.60 1.56 2.43 1.90A 3. Industrial Production % 3.50 4.20 -5.74 1.48 2.30A 4. Light Vehicle Sales 16.80 16.20 16.70 16.80 16.70A 5. Housing Starts (millions of units) 1.65 1.60 1.60 1.70 1.85A 6. S&P Reported E.P.S. 48.17 50.00 24.90 28.00 44.56 Change 28 4 -50 12 59 7. S&P Dividends Per Share 16.69 16.27 15.74 15.98 17.70 Change 4.00% -3.00% -3.00% 2.00% 10.76% 8. Price-Earnings Ratios Range 25 - 31 X 22 - 31 X 22 - 46 X 22 - 46 X 21 - 34 X (One Year-End S8tP 500 Index) The information presented in this report has been developed intemalt}• and/or obtained from sources which Northstar Capital Management, Inc. believes to be reliable; however, Northstar does not guarantee the accuracy, adequacy or completeness of such informatron nor does it guarantee the appropriateness of arty strategy refereed to in this report for an}• particular client. T}ris report is provided for informational proposes only and is not to be constructed as advice or a recormrtendation for the purchase or sale of a seuwity. Economic forecasts re~ect subjective judgments arrd asstanptions, and unexpected events may occur. Therefore, there can be rro assurance that developments will transpire as forecasted in this report. This report reflects the opinion of Northstar on the date made and u subject to change at any time with notice. 4-2 Northstar Capital Management, Inc. SUMMARY OF INVESTMENT POSITION VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND 4806P3 December 31, 2003 Total % Est. Annual _ Classification Market Value Total Fund Income CASH INSTRUMENTS MONEY MARKET FUNDS 127,837 6.2 TOTAL ASSET CLASS FIXED INCOME BONDS U. S. GOVERNMENTS TOTAL ASSET CLASS COMMON STOCK COMMUNICATION SERVICES CONSUMER DISCRETIONARY CONSUMER STAPLES FINANCIALS HEALTHCARE INDUSTRIALS TECHNOLOGY TOTAL ASSET CLASS TOTAL PORTFOLIO 127,837 6.2 10,227 10,227 Curr Yield 8.0 8.0 218,165 10.5 12,807 5.9 538,370 25.9 25,650 4.8 756,535 36.5 38,457 5.1 22,448 1.1 0 0.0 298,878 14.4 156 0.1 77,087 3.7 866 1.1 262,965 12.7 2,529 1.0 236,138 11.4 986 0.4 79,324 3.8 532 0.7 213,432 10.3 224 0.1 1,190,272 57.4 5,292 0.4 2,074,644 100.0 53,977 2.6 Northstar Capital Management, Inc. PORTFOLIO DETAIL VILLAGE OF TEQUESTA PUBLIC.SAFETY OFFICERS' PENSION TRUST FUND 9806P3 December 31, 2003 Security Call Cull Unit Total Market Annual Cw•r Quantity Description Date _ Price _ Cost Cost Price Value _ Income Yield CASH INSTRUMENTS MONEY MARKET FUN DS SHORT TERM PAPER U.S. GOVT 127,837 127,837 _ 10,227 8.0 MONEY MARKET FUNDS TOTAL 127,837 127,837 10,227 8.0 CASH INSTRUMENTS TOTAL 127,837 127,837 10,227 8.0 FIXED INCOME U.S. GOVERNMENTS AGENCIES 25,000 FEDERAL HOME LOAN BANKS 98.69 24,672 11(1.03 27,508 1,560 5.7 6.240°'o Due 12-11-06 50,000 FEDERAL HOME LOAN MTG CORP. 101.56 50,779 101.72 50,859 1,750 .3.4 3.500°io Due 09-15-07 25,000 FEDERAL HOME LOAN BANK BOND 99.20 24,800 107.41 26,852 1,312 4.9 5.250°,'o Due 02-13-09 50,000 FED NATL MTG ASSOC. 03-29-04 100.00 100.00 50,000 100.23 50,115 1,505 3.0 3.010°ro Due 09-29-06 50,000 FEDERAL HOME LN MTG CORP. OS-OS-04 100.00 100.00 50,000 100.46 50,231 2,125 4.2 4.250°ro Due OS-OS-10 25,000 FEDERAL HOME LOAN BANK 07-23-04 100.00 100.19 25,047 102.87 25,719 1,500 S.R 6A00%Due 07-23-08 25,000 FEDERAL HOME LOAN BANK 08-09-04 100.00 100.00 25,000 102.72 25,680 1,575 6.1 6.300°io Due 08-09-11 50,000 FED HOME LOAN BANK 09-30-04 100.00 100.09 50,047 101.69 50,844 2,810 5.5 5.620°io Due 09-30-13 50,000 FEDERAL HOME LOAN BANK 10-18-04 100.00 99.98 49,992 102.53 51,266 2,775 5.4 5.550%Due 10-18-11 50,000 FEDERAL FARM CREDIT 08-25-OS 100.00 100.00 50,000 102.16 51,078 2,500 4.9 5.000% Due 08-25-10 50,000 FED HOME LOAN BANK 09-30-OS 100.00 100,00 50,000 101.5(1 50,750 2,050 4.0 4.100°ro Due 03-30-09 50,000 FEDERAL HOME LOAN BANK 10-17-OS 100.00 100.00 50,000 101..28 50,641 2,625 5.2 5.250%Due 10-17-13 25,000 FEDERAL HOME LOAN MORTGAGE 03-05-07 100.00 100.50 25,125 107.31 26,828 1,562 S.R CORP. 6.250°ro Due 03-OS-12 _ 525,462 53R,370 25,650 4.R U. S. GOVERNMENTS TOTAL 525,462 538,370 25,650 4.R BONDS CORPORATES 25,000 AMERITECH CAP FUNDING CORP 99.12 24,781 103.53 25,883 1,575 6.1 6.300°ro Due 10-15-04 ~ ~ ~ ~ ~ ~ 1~ ~ ~ ~ Northstar Capital Management, Inc. PORTFOLIO DETAIL VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND 4806P3 December 31, 2003 Security Call Call Unit Total Market Annual Curr Quantity Description Date Price Cost Cost Price Value Income Yield 25,000 PENNSYLVANIA PWR & LT CO 98.22 24,556 105.93 26,482 1,625 6.1 6.500°ro Due 04-O1-OS 25,000 PtiBLIC SVC ELEC & GAS CO 100.00 25,000 109.1 R 27,295 1,562 5.7 6.250°ro Due 01-O1-07 25,000 BANKERS TR NY CORP SUB MTN BE 99.57 24,892 111.79 27,948 1,675 6.0 6.700%Due 10-01-07 25,000 CSX TRANS INC EQUIP TR 93-A 101.42 25,356 110.47 27,617 1,620 59 6.480% Due 03-15-08 25,000 FIRST UNION CORP 99.09 24,773 110.27 27,566 1,5(1(1 5.4 6.000% Due 10-30-08 25,000 VERIZON NEW ENGLAND INC 100.87 25,219 110.19 27,547 1,625 5.9 6.500% Due 09-15-11 25,000 CREDIT SUISSE FB USA 101.13 25,282 111.30 27,826 1,625 5.8 6500% Due 01-15-12 199,858 218,165 12,807 5.9 BONDS TOTAL 199,858 218,165 12,807 5.9 FIXED INCOMF, TOTAL 725,320 756,535 38,457 5.1 COMMON STOCK COMMLiNICATION SERVICES CELLULAR/WIRELESSTELEGOM B00 NEXTEL COMMUNICATIONS CL A COMMUNICATION SERVICES TOTAL CONSUMER DISCRETIONARY CASINO & GAMING 1,600 INTERNATIONAL GAME TECH LEISURETIME - PROllCCTS 400 HARLEY-DAVIDSON INC RE"GAIL -SPECIALTY 900 BED BATH AND BEYOND 700 BEST BUY COMPANY INC. 600 COACH, INC. 1,000 LOWE'S COMPANIES RESTALiRANTS 1,500 STARBUCKS CORP COM E-COMMERCE/SERVICES 300 EBAY INC. CONSUMER DISCRETIONARY TOTAL 25.74 20,592 28.(16 22,448 0 0.0 20,592 22,448 0 0.0 20.19 32,310 35.70 57,120 0 0.0 45.78 18,311 47.53 19,012 56 0.3 28.54 25,690 43.35 39,015 0 0.0 52.06 36,440 52.24 36,568 0 0.0 36.45 21,870 37.75 22,650 0 0.0 43.92 43,921 55.39 55,390 100 0.2 127,921 153,623 100 0.1 25.63 38,442 33.16 49,740 0 0.0 59A7 17,722 64.61 19,383 0 0.0 234,706 298,878 156 0.1 Northstar Capital Management, Inc. PORTFOLIO DETAIL VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND 4806P3 December 31, 2003 Security Call Call Unit Total Market Annual Curr Quantity Description Date Price Cost Cost Price Value Income Yield CONSUMER STAPLES RETAIL -GENERAL MERCHANDISE 700 WAL MART STORES INC 4R.38 33,868 53.05 37,135 210 0.6 HOUSEHOLD PRODUCTS-PERSONALCARE 400 PROC"CER & GAMBLE CO 89.56 35,825 99.88 39,952 656 1.6 CONSUMER STAPLES TOTAL 69,693 77,087 866 1.1 FINANCIALS BANKS & THRIFTS 1,000 WACHOVIACORP. 700 WELLS FARGO & CO NEW FINANCIAL - CONSUMER/DIVERSIFIED 600 AMBAC FINANCIAL GROUP INC. 1,000 AMERICAN EXPRESS CO 700 CAPITAL ONE FINANCIAL CORP. 700 MOODY'S CORP. FINANCIALS TOTAL HEALTHCARE HEALTHCARE-BIOTECHNOLOGY 700 AMGEN INC 300 GENENTECH INC NEW HEALTHCARE-DRUGS 1,100 PFIZER INC 700 TEVA PHARMACEUTICAL HEALTHCARE -MEDICAL PROD/SUPPLY 900 MEDTRONIC INC 5(10 STRYKER CORPORATION HEALTHCARE TOTAL 37.82 37,819 51.02 35,716 70.78 42,466 37.32 37,325 47.53 33,269 48.70 34,088 147,149 220,684 45.93 32,154 81.33 24,400 56,554 33.9() 37.287 57.06 39,944 77,231 32.37 29,136 66.21 33,105 35.33 38,863 56.71 39,697 78,560 48.61 43,749 85.01 42,505 86,254 46.59 46,590 58.89 41,223 87,813 69.39 41,634 48.23 48,230 61.29 42,903 60.55 42,385 175,152 262,965 61.79 43,253 93.57 28,071 71,324 1,040 2.2 784 1.9 1,824 2.1 240 0.6 320 0.7 19 0.0 126 0.3 705 0.4 2,529 1.0 0 0.0 0 0.0 0 0.0 660 1.7 41 0.1 701 0.9 225 0.5 60 0.1 285 0.3 986 0.4 INDUSTRIALS ELECTRICAL EQUIPMENT 700 GENERAI, ELEC CO 196,026 236,138 23.46 16,424 30.98 21,686 532 2.5 Northstar Capital Management, Inc. PORTFOLIO DETAIL VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND 4806P3 December 31, 2003 Security Call Call Unit Total Market Annuul Curr Quantity Descripdmt Date Price Cost Cost Price Value Income Yield SCHOOLS 850 APOLLO GROUP, INC. 27.24 23,156 67.81 57,638 0 0.0 INDUSTRIALS TOTAL 39,580 79,324 532 0.7 TECHNOLOGY COMPUTERS -HARDWARE 2,000 CISCO SYS INC 16.57 33,146 24.23 48,460 0 0.0 1.100 DELL INC. 28.92 _ 31,811 33.98 _ _ 37,378 _____ 0 0.0 64,957 85,838 0 0.0 COMPUTERS -SOFTWARE/SERVICES 1,400 MICROSOFT CORP 34.35 48,091 27.37 38,318 224 0.6 1,600 NETWORK APPLIANCE 21.34 34,148 20.44 32,704 0 0.0 1,200 SYMANTEC CORPORA"TION 21.63 25,958 34.50 41,400 0 0.0 108,197 112,422 224 0.2 SEMICONDUCTORS 400 MARVELLTECHNOLOGYGROUP 42.89 17,156 37.93 15,172 0 0.0 TECHNOLOGY TOTAL 190,310 213,432 224 0.1 COMMON STOCK TOTAL 971,591 1,190,272 5,292 0.4 'TOTAL PORTFOLIO 1,824,748 2,074,644 53,977 2.6 NORTHSTAR CAPITAL MANAGEMENT, INC PURCHASE AND SALE VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND From 08-01-03 to 12-31-03 Trade Settle Unit Date Date Quantity Security Price Amount PURCHASES 8/7/2003 8/8/2003 50,000 FEDERAL HOME LOAN MTG CORP. 101.56 50,779 3.500% Due 09-15-07 8/14/2003 8/25/2003 50,000 FEDERAL FARM CREDIT 100.00 50,000 5.000% Due 08-25-10 8/19/2003 8/22/2003 100 TEVA PHARMACEUTICAL 58.15 5,815 8/19/2003 8/22/2003 100 TEVA PHARMACEUTICAL 58.17 5,817 8/19/2003 8/22/2003 100 TEVA PHARMACEUTICAL 58.23 5,823 9/8/2003 9/30/2003 50,000 FED HOME LOAN BANK 100.00 50,000 4.100% Due 03-30-09 9/8/2003 9/29/2003 50,000 FED NATL MTG ASSOC. 100.00 50,000 3.010% Due 09-29-06 9/9/2003 9/30/2003 50,000 FED HOME LOAN BANK 100.09 50,047 5.620% Due 09-30-13 9/10/2003 9/15/2003 400 GILEAD SCIENCES INC 67.62 27,049 9/23/2003 9/26/2003 400 BEST BUY COMPANY INC. 50.38 20,152 9/23/2003 9/26/2003 100 WAL MART STORES INC 58.02 5,802 9/23/2003 9/26/2003 200 WACHOVIA CORP. 42.11 8,423 9/23/2003 10/17/2003 50,000 FEDERAL HOME LOAN BANK 100.00 50,000 5.250% Due 10-17-13 10/14/2003 10/17/2003 300 BEST BUY COMPANY INC. 54.29 16,288 10/14/2003 10/17/2003 250 AMBAC FINANCIAL GROUP INC. 71.96 17,990 10/14/2003 10/17/2003 600 NETWORK APPLIANCE 25.43 15,258 10/14/2003 10/17/2003 300 EBAY INC. 59.07 17,722 10/22/2003 10/27/2003 200 MEDTRONIC INC 46.12 9,225 10/22/2003 10/27/2003 100 AMBAC FINANCIAL GROUP INC. 71.39 7,139 10/22/2003 10/27/2003 100 TEVA PHARMACEUTICAL 57.24 5,724 10/22/2003 10/27/2003 400 MARVELL TECHNOLOGY GROUP 42.89 17,156 11/5/2003 11/10/2003 600 COACH, INC. 36.45 21,870 11/10/2003 11/14/2003 300 SANDISK CORP 83.14 24,943 12/2/2003 12/5/2003 800 NEXTEL COMMUNICATIONS CL A 25.74 20,592 12/18/2003 12/23/2003 500 PFIZER INC 34.49 17,245 570, 860 Current Acquisition Trade Settle Unit Price Date Date Date Quantit Security Price Amount 2!6/2004 SALES 12/19/1997 8/15/2003 8/15/2003 25000 UNITED STATES TREAS NTS 100.00 25,000 0.00 5.750% Due 08-15-03 3/12/2001 8/19/2003 8/22/2003 400 FOREST LABORATORIES 41.86 16,744 75.54 6/18/2003 9!10/2003 9/15/2003 100 LEXMARK INTL GROUP INC CL A 64.86 6,486 85.38 4/8/2003 9/10/2003 9/15/2003 200 LEXMARK INTL GROUP INC CL A 64.86 12,973 85.38 7!15/2003 9/23/2003 9/26/2003 700 CAREMARK RX, INC. 21.23 14,860 28.53 6/6/2003 9/23/2003 9/26/2003 200 SYMANTEC CORPORATION 64.14 12,828 39.96 6/6/2003 9/29/2003 10!2/2003 200 FOX ENTERTAINMENT GROUP, INC 27.63 5,526 29.52 1/7/2003 9/29/2003 10/2/2003 200 FOX ENTERTAINMENT GROUP, INC 27.63 5,526 29.52 4/8/2003 9/29/2003 10/2/2003 500 FOX ENTERTAINMENT GROUP, INC 27.63 13,814 29.52 1/7/2003 9/29/2003 10/2/2003 300 FOX ENTERTAINMENT GROUP, INC 27.63 8,289 29.52 7/10/2003 10/8/2003 10/14/2003 300 FEDERAL HOME LN MTG CORP 56.41 16,924 63.08 4/4/2000 10/14/2003 10/17/2003 500 PFIZER INC 30.67 15,334 38.85 2/16/2000 10/14/2003 10/17/2003 200 GENERAL ELEC CO 28.95 5,790 33.18 8/27/2002 10/14/2003 10/17/2003 100 GENERAL ELEC CO 28.95 2,895 33.18 10/10/1997 10/14/2003 10/17!2003 200 GENERAL ELEC CO 28.95 5,790 33.18 8/27/2002 11/5/2003 11/10/2003 100 RAREFY-DAVIDSON INC 47.97 4,797 53.34 8/23/2000 11/5/2003 11/10/2003 300 RAREFY-DAVIDSON INC 47.97 14,390 53.34 9/10/2003 11/10/2003 11/14/2003 400 GILEAD SCIENCES INC 52.37 20,947 56.56 11/10/2003 12/18/2003 12/23/2003 300 SANDISK CORP 57.30 17,191 53.12 226,104 NORTHSTAR CAPITAL MANAGEMENT, INC. PURCHASE AND SALE VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND 4806P3 From 01-01-04 To 01-31-04 Trade Settle Date Date Quantity Security Unit Price Amount PURCHASES 1/6/2004 1/9/2004 400 AFFILIATED COMPUTER SERVICES, INC. 1/8/2004 1/23/2004 50000 FEDERAL HOME LOAN BANK 5.200% Due 01-23-14 1/14/2004 1/20/2004 600 NEXTEL COMMUNICATIONS CL A 1/21/2004 1/26/2004 500 GENERAL ELECTRIC 57.14 22,856 100.00 50,000 28.95 17,370 33.37 16,685 106,911 Current Acquisition Trade Settle Unit Price Date Date Date Quantity Security Price Amount 2/6/2004 SALES 9/23/2003 1/6/2004 1/9/2004 100 WAL MART STORES INC 52.73 5,273 57.58 10/9/2001 1/6/2004 1/9/2004 100 WAL MART STORES INC 52.73 5,273 57.58 4/22/2003 1/14/2004 1/20/2004 350 LOWE'S COMPANIES 52.73 18,455 54.67 4/8/2003 1/14/2004 1/20/2004 50 LOWE'S COMPANIES 52.73 2,636 54.67 8/23/2000 1/21/2004 1/26/2004 200 HARLEY-DAVIDSON INC. 45.10 9,020 53.34 4/29/2003 1/21/2004 1/26/2004 200 HARLEY-DAVIDSON INC. 45.10 9,020 53.34 49,677 VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FD VOTE SUMMARY REPORT July 1, 2003 TO July 31, 2003 Mtg Company/ Mgt Vote Record Shares Date/Type Ballot Issues Security Rec Case Date Voted 08/11/2003 A Forest Laboratories 345838106 06/20/2003 800 Directors For For Proposals: 02. Ratification of amendment of the For For company's certificate of incorporation to authorize additional shares of the company's common stock. 03. Ratification of BDO Seidman, LLP For For as independent auditors. 08/21/2003 A Symantec Corporation 871503108 07/08/2003 800 Directors For For Proposals: 02. Adoption of Symantec's Amended and For For Restated Certificate of Incorporation. 03. Amendment of Symantec's 1996 For For Equity Incentive Plan to allow grants of restricted stock. 04. Adoption of Symantec's Senior For For Executive Incentive Plan. 05. Ratification of the selection of KPMG For For LLP as independent auditors. 08/28/2003 A Medtronic, Inc. 585055106 07/03/2003 700 Directors For For Proposals: 02. To ratify the appointment of For For PriceWaterhouseCoopers LLP as Medtronic's independent auditors. 03. To approve Medtronic's 2003 long-term For For incentive plan. 04. To approve Medtronic's executive For For incentive plan. VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FD VOTE SUMMARY REPORT August 1, 2003 TO August 31, 2003 Company/ Mgt Vote Record Shares Ballot Issues Security Rec Case Date Voted NO PROXIES FOR AUGUST ~~ ' Mtg Date/Type ' 10/14/03 VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FD VOTE SUMMARY REPORT September 1, 2003 TO September 30, 2003 Company/ Mgt Vote Record Shares Ballot Issues Security Rec Case Date Voted A Procter 8~ Gamble 742718109 08/01/2003 400 Directors For For Proposals: 02. Ratify appointment of independent For For auditors - Deloitte & Touche 03. Approve the Procter & Gamble 2003 For For non-employee diretors' stock plan 04. Shareholder Proposal No. 1 Board of Against Against Diretors Terms 05. Shareholder Proposal No. 2 Label Against Against Genetically Engineered Foods VILLAGE OF TEQUESTA PROXY VOTING THERE WERE NO PROXY VOTES DURING THE MONTHS OF OCTOBER, NOVEMBER AND DECEMBER 2003. CORPORATE BIOGRAPHIES 8-1 ~ ~ s ~ ~ ~ ^~ ~ ~ ~ s ~^ ~ ~ ~ ~ ~ ~ ~ CELI,IJLAR/WIREI,E:SS 'T'ELECOM NExTEI. CONIMUNICAI'IONS Nextel Communications, Inc. is a provider of wireless communications services in the United States. The Company's service offerings include digital wireless service, Nextel Direct Connect, its long-range digital walkie-talkie service; wireless data, including a-mail and text messaging and Nextel Online services, which provide wireless access to the Internet, an organization's internal databases and other applications. CASINO & GAMING INTEKNAT'IONAL CAME TECHNOLOGY The Company is engaged in the design, manufacture and marketing of computerized casino gaming products and operates proprietary gaming systems. RETAIL - SI'I~:CIAL,TY BED BATH & BEYOND INC. Bed Bath & Beyond Inc. operates a chain of superstores that sell a variety of domestics merchandise and home furnishings. The Company's stores offer brand name merchandise such as Laura Ashley, Cuisinart, Calphalon, J.A. Henckels, and Krups. Bed Bath & Beyond operates throughout the United States. 8-2 RETAML -SPECIALTY t3ES'}` IiUY COMPANY INC. Best Buy Co., Inc. is a specialty retailer of consumer electronics, home office equipment, entertainment software and appliances. The Compay operates retail stores and commercial Websites as part of continuing operations under the brand names Best Buy (BestBuy.com) Future Shop (FutureShop.ca) and Magnolia Hi-Fi (MagnoliaHiFi.com). The Copany has two reportable operating segments, Domestic and International. Domestic includes United States Best Buy and Magnolia Hi-Fi stores. International consists of Future Shop stores operating in Canada as well as Canadian Best Buy stores. COACH INC. Coach, Inc. designs, produces, and markets primarily leather goods. The Company's products include handbags, business cases, men's and women's accessories, luggage and travel accessories, leather outerwear, and gloves. Coach, together with a licensing partner, offers watches, footwear, furniture, and eyewear. LOWES COMPANIF,S The Company is a home improvement, home decor and home construction retailer serving the do-it-yourself market. Its stores combine the merchandise, sales and service of a home improvement center, abuilding-contractor supply business and a consumer durables retailer. 8-3 RESTAURANTS STARBUCKS CORPORATION The Company is engaged in the purchasing and roasting of high-quality whole bean coffees. It also sells them, along with a variety of coffee beverages and coffee-related accessories and equipment, primarily through Company-operated retail stores. E-COMMERCE/SERV[CES EBAY, INC. EBay Inc. operates a marketplace in which anyone, anywhre, can buy or sell practically anything. The Company has developed aWeb-based marketplace in which a community of buyers and sellers are brought together to browse, buy and sell various items. The Company's marketplace exists as an on-line trading platform that enables a global community of buyers and sellers to interact and trade with one another. RETAIL - GENERAL. MERCHANDLSE WALMART STORES, INC. Wa1Mart Stores, Inc. operates discount stores and Supercenters, as well as Sam's Clubs. The Company's WalMart discount stores and Supercenters offer merchandise such as apparel, housewares, small appliances, electronics, and hardware. Wa1Mart operates in the United States, Canada, Argentina, Brazil, Germany, Mexico, and Puerto Rico, as well as joint ventures in China and Korea. 8-4 HOUSCHOI,D PRODUC'T'S -PERSONAL CARE PROCTER & GAMBLE CO The Procter & Gamble Company manufactures and markets consumer products in countries throughout the world. The Company provides products in the laundry and cleaning, paper, beauty care, food and beverage, and health care segments. Procter & Gamble's products include Pampers diapers, Tide laundry detergent, PUR drinking water systems, Crest toothpaste, and Vicks cough/cold products. BANKS & THRIFTS WACHOVIA CORPORATION Wachovia Corporation is a bank holding company. Its branches are located in the Eastern and South Atlantic states and provide a wide range of commercial and consumer banking trust services and other financial services. wEl.l.s rARGO co. The Company provides banking, insurance, investments and other financial services through its branch offices located throughout the United States. 8-5 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ i ~ ~ ~ ~ ~ ~ F'INANCIAI. - CONSI.INIER/DIVERSIFIED (( AMBAC: FINANCIA[, GROUP Ambac Financial Group, Inc. is a holding company whose subsidiaries provide financial guarantee products and other financial services to clients in both the public and private sectors around the world. It provides financial guarantees for public finance and structured finance obligations though its principal operating subsidiary, Ambac Assurance Corporation. Through its financial services subsidiaries, Ambac Financial Group provides financial and investment products, including investment agreements, interest rate and total return swaps funding conduits, investment advisory and cash management services, principally to its clients which include municipalities and their authorities, school districts, healthcare organizations and asset-backed issuers. AMF,RICAN EXPRESS COMPANY The Company is a global travel and financial services firm providing customers with products and services including charge and credit cards, travelers cheques and other stored value products. It offers financial planning, brokerage services, mutual funds, insurance and other investment products. CAPITAL ONE FINANCIAL Capital One Financial Corporation is a financial services company whose primary business is offering credit card products. Its operations are conducted primarily through its subsidiary, Capital One Bank. The Company also offers consumer lending and deposit products, along with automobile and other motor vehicle financing products. 8-6 FINANCIAL - CONSUMER DIVERSIFIED CONTD. MOOUYS CORPORA'CION The Company is engaged primarily in the credit rating of corporations, financial institutions and the public sector. They also market products enabling clients to access this information. Geographic sales for 2002 were 70% in the US and 30% Other. H EALTHCARF.-BIOTECHNOLOGY AMGEN INC. The Company is a biotechnology company engaged in the research and development of human therapeutics based on advances in cellular and molecular biology, its two major products are Epogen, an anti-anemic drug, and Neupogen, a white blood cell promoter. GENEN7'ECH INC'ORPORA'TED Genentech, Inc. is a biotechnology company using human genetic information to discover, develop, manufacture and commercialize biotherapeutics for significant unmet medical needs. The Company manufactures and commercializes 10 biotechnology products directly in the United States. These include Herceptin, Rituxan, TNKase, Activase, Cathflo Activase, Nutropin Depot, Nutropin AQ, Nutropin human growth hormone, Protopin and Puhnozyme. 8-7 ~ ~ ~ HEALTHCARE-DRUGS PFI'LER INC. ~ ~ ~ ~ ~ ~ ~ Pfizer Inc. is aresearch-based, global pharmaceutical company that discovers, develops, manufactures, and markets medicines for humans and animals. The Company's products include prescription pharmaceuticals, non-prescription self-medications, and animal health products such as anti-infective medicines and vaccines. TF,VA PHARMACEUTICAL Teva Pharmaceutical Industries Ltd. Is a global pharmaceutical company producing drugs in all major treatment categories. Teva has utilized its production and research capabilities to establish a global pharmaceutical business focused on the growing demand for genetic drugs and on the opportunities for proprietary branded products for specific niche categories. Teva's active pharmaceutical ingredients business provides both significant revenues and profits from sales to third-party generic manufacturers and strategic benefits to the Company's own pharmaceutical production through its delivery of significant raw materials. 8-8 ~ ~ ~ ~ ~ r ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ HEALTHCARE -MEDICAL PRODUCTS/SUPPL.IES MEDTRONIC INC. Medtronic, Inc. provides device-based therapies that restore health, extend life, and alleviate pain. The Compairy's principal products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, heart failure management, heart valve replacement, malignant and non-malignant pain, and movement disorders. Medtronic's products are sold worldwide. S'CRYKER CORPORATION The Company develops, manufactures and markets specialty surgical and medical products, including endoscopic systems, orthopaedic implants, powered surgical instruments, and patient handling equipment for the global market. ELECTRICAL EQUIPMENT GENERAL ELE:CTFtIC General Electric Company develops, manufactures, and markets products for the generation, distribution, and utilization of electricity. The Company, through General Electric Capital Services, Inc., offers a variety of financial services including mutual fund management, financing, asset management, and insurance. General Electric also owns the National Broadcasting Company. 8-9 SCHOOLS APOLLO GROl1P INC. Apollo Group, Inc. provides higher education programs for working adults. The Company's subsidiaries include the University of Phoenix, the Institute for Professional Development, the College for Financial Planning, and Western International University. Apollo offers accredited degree programs, certificate programs, and customized training at campuses in the United States and Canada. COMPUTERS-HARDWARE CISCO SYSTEMS The Company is a supplier of multiprotocol and multimedia routers, bridges, communication servers and network management products designed to meet customer inter-networking application requirements. Its customers span such industries as financial services, transportation, telecommunications, manufacturing, utilities, government, publishing, computing, universities and research centers. UEC,h COMPU'T'ER CORP. The Company is a direct marketer ofhigh-performance personal computer systems and the Dell brand of personal computers including desktops, notebooks and servers. Geographic sales for 2002 were 65% in the US and 35% 8-10 "t)M PU'fERS-SOFTWARE/SERVICES AFI+ILLA'I'Ep COMP(1'TER SERVICES Affiliated Computer Services, Inc. is a global company delivering comprehensive business process outsourcing and information technology outsourcing solutions to commercial and government clients. The Company is organized into commercial, state and local government and the federal government segments. Within the commercial segment, ACS provides technology outsourcing, business process outsourcing and systems integration services to clients in such industries as insurance, utilities, manL>lacturing, financial institutions, telecommunications, healthcare, retail and transportation. MICROSOFT CORP Microsoft Corporation develops, manufactures, licenses, sells and supports computer software products. The Company offers operating system software, server application software, business and consumer applications software, software development tools, and Internet and Intranet software. Microsoft also develops the MSN network of Internet products and services. NE'T'WORK APPLIANCE IN('ORI'OR.A'I"E:D Network Appliance, Inc. is a provider of enterprise network storage and data management solutions. NetApp network storage solutions and service offerings provide data-intensive enterprises with consolidated storage, improved data center operations, economical business continuance and efficient remote data access across the distributed enterprise. NetApp products consist of filter storage applications, NearStone appliances, NetCache content delivery appliances, data management and content delivery software and support services. All NetApp systems come packaged in rack-mountable enclosures that can be installed in a customer's existing server racks orfactory-installed and configured in cabinets. SYMANTEC CORPORATION The Company develops, markets and supports a diversified line of application and system software products designed to enhance individual and workgroup productivity as well as manage networked computing environments. The Company also offers Internet security software. 8-11 SEMICONDUCTORS MARVELL T1~;CHNOLOC;Y GROUP Marvell Technology Group Ltd. Is a global semiconductor provider of broadband communications and storage solutions. The Company's product portfolio consists of switching, transceiver, wireless, PC (personal computer) connectivity, gateways, communications controller and storage solutions that power the entire communications infrastructure, including enterprise, metro, home and storage networking. Its core technologies were initially focused on the storage market, where it provided products to disk drive manufacturers such as Fujitsu, Hitachi, Samsung, Seagate and Toshiba. 8-12