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HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 04A_08/10/2004Investment Review VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND August 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 OF CONTENTS 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: June 30, 2004 Appraisal Section 6: Purchase, Sale & Commission Report Section 7: Proxies Section 8: Corporate Biographies NORTHSTAR CAPITAL MANAGEMENT FIRM STRUCTURE & HISTORY ~ Structure - Northstar 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 EQUITY .MANAGEMENT TEAM Name Titlc and Responsibility Exp Education Degrcc Year Brandon A. Dorsey Equity Trader 11 Boston College BS 1994 Robert G. Jacobsen, CFA., CIC Senior Vice President and Portfolio Manager Eileen McCarthy H. Kent Mergler, CFA, CIC Vice President and Portfolio Manager President and Portfolio Manager N Stephen K. Mergler, JD Jason J. McPharlin Vice President and Portfolio Manager Associate Meg R. Shea Vice President and Marketing Contact 33 Georgia State University MBA 1971 34 University of Illinois BA 1953 41 University of Cincinnati MBA 1964 8 University of Florida JD 1991 1 Thunderbird MBA 1997 14 St. Mary's College of Calif BS 1987 Peter V. Van Beuren Senior Vice President and Portfolio 40 Colgate University BA 1961 Manager 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 accotmts. However, the portfolio managers for any particular account ultimately have the discretion to purchase and sell securities for that account. NORTHSTAR QUALITY GROWTH EQUITY MANAGEMENT Investment Philosophy lid We believe high quality, high earnings growth companies provide superior investment returns over full market cycles Investment Process I~ Investment research screens help identify "wealth creators" ~ Fundamental, bottom-up analysis is performed to target companies with growth characteristics 1® A portfolio of approximately 30 names representing the "best ideas" of our portfolio management team is selected lid Holdings are monitored to assure competitive advantage and growth characteristics II® 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. I'~ Debt securities include: Asset and Mortgage Backed Securities Commercial Paper Convertible Bonds Corporate Bonds and Notes Government Issues, including Agencies Municipal Bonds IIE Yield spreads vs. Treasury bonds are monitored and evaluated by sector, industry and issue to identify relative value. I® 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: IIC Yield Advantage (verses benchmark index) ~ Above Average Call Protection (consistent with interest rate and economic outlook) I'~ Appropriate Volatility (consistent with benchmark index) III Prudent Duration (gradual adjustments with a bias towards intermediate and long-term securities) 2-2 Fixed Income - Building aClient Portfo .io 2-3 i ' 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. Lonq Term Asset Mix Guidelines: MAXIMUM MINIMUM Fixed Income Securities 60% 35% Equities (Including Convertible Issues & Foreign Securities) 60% 0% Cash Equivalents (under 1 yr ~ maturity) 50% 0% Limitations and Restrictions: 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 June 30, 2004 Asset Mix Cash Equivalents Equities Bonds Income Estimated Annual Yield of Eauitv Characteristics 5.5 59.0 35.5 2.3 Portfolio S&P 500 Index 2004 Price Earnings Multiple 26.6 X 17.2 X Projected 5-Year Earnings Growth 17.8 % 5.0 2003 Return on Equity 21.6 % 16.1 Current Yield 0.5 % 1.5 Diversification Summary Portfolio S&P 500 Index Consumer Discretion 22.6 % 11.1 Consumer Staples 5.4 11.2 Energy 2.4 6.6 Financials 17.9 19.8 Health Care 24.5 13.4 Industrials 9.5 11.4 Information Tech 14.8 17.3 Materials 0.0 3.0 Telecommunications 2.9 3.4 Utilities 0.0 2.8 100.0 % 100.0 Fixed Income Characteristics Leman Bros. Govt/Credit Portfolio Intermediate Index Duration 2.2 Yrs 3.75 Yrs Average Maturity 5.3 Yrs 4.42 Yrs Yield to Maturity 3.2 % 3.86 Average Quality AA+ Aa2 3-2 FUNDAMENTAL CHARACTERISTICS OF THE CURRENT HOLDINGS IN THE VILLAGE OF TEQUESTA PUBLIC SAFETY PORTFOLIO 6/30/2004 Company Name Symbol AMBAC FINANCIAL GROUP INC ABK ALCON INCORPORATED ACL AMGENINCORPORATED AMGN APOLLO GROUP INCORPORATED APOL AMERICAN EXPRESS COMPANY AXP BED BATH & BEYOND INCORPORATED BBBY CAPITAL ONE FINANCIAL CORPORATION COF COACH INCORPORATED COH CISCO SYSTEMS INCORPORATED CSCO DELL INCORPORATED DELL GENENTECHINCORPORATED DNA EBAYINCORPORATED EBAY GENERAL ELECTRIC COMPANY GE HARMAN INTL INDUSTRIES INC HAR `;' INTERNATIONAL GAME TECHNOLOGY IGT `~ L-3 COMMUNICATIONS HOLDINGS INC LLL LOWES COMPANIES INCORPORATED LOW MOODYS CORPORATION MCO MEDTRONIC INCORPORATED IMDT MARVELL TECHNOLOGY GROUP LTD IMRVL MICROSOFT CORPORATION IMSFT NEXTEL COMMUNICATIONS CL A INXTL PFIZER INCORPORATED IPFE PROCTER & GAMBLE COMPANY IPG STARBUCKS CORPORATION ISBUX SMITH INTERNATIONAL INCORPORATED ISII STRYKER CORPORATION ISYK SYMANTEC CORPORATION ISYMC TEVA PHARMACEUTICAL ADR ITEVA VARIAN MEDICAL SYSTEMS INC IVAR WACHOVIA CORPORATION IWB WAL-MART STORES INCORPORATED IWMT I Portfolio Average I I S&P 500 INDEX WITH REPORTED EPS ~spx Portfolio Data / S&P Data 5 Yr EPS Historical Growth (%) 18.23 12.73 17.18 40.76 8.31 31.37 31.16 50.84 15.21 13.02 23.77 125.19 9.96 24.31 25.91 27.16 26.89 26.38 I 17.24 1 42.27 I 11.11 NMN I 17.33 I 10.28 I 26.18 I 14.56 I 27.36 I 26.18 I 40.22 I 25.79 I -2.26 I 15.74 I I I 25.82 I -0.761 I (33.97)1 1 Yr EPS Historical Growth (%) 26.13 26.06 26.00 44.54 17.31 33.65 21.57 63.89 32.00 24.42 26.14 83.16 6.16 50.00 13.83 22.31 21.54 31.63 16.31 ~ NMN ~ 8.81 ~ 229.41 ~ -17.83 I 13.57 I 31.15 I 72.41 1 27.96 I 37.42 29.17 I 31.65 I 22.41 I 17.58 I I 35.17 I 21.84 I 1.61 I IBES 5Yr Fut Growth (%) 15.00 17.00 21.00 25.00 13.00 20.00 15.00 20.00 15.00 16.00 26.00 38.00 10.00 25.00 15.00 15.00 18.00 15.00 16.00 30.00 12.00 15.00 13.00 11.00 20.00 13.00 20.00 15.00 23.00 18.00 10.00 14.00 17.78 7.00 2.54 Forward Estimated 4 Qtrs P/E to Current Current P/E~x) Growth ROE (%) Yield (%) 11.0 ~ 0.70 15.19 0.60 32.00 1.90 44.25 0.71 20.90 1.00 12.11 0.00 39.40 1.60 26.29 0.00 18.00 1.40 21.02 0.78 22.90 1.10 22.62 0.00 11.00 0.70 21.68 0.16 27.60 1.40 41.41 0.00 27.90 1.90 17.21 0.00 26.70 1.70 47.06 0.00 61.10 2.30 9.20 0.00 66.60 I 1.80 12.05 0.00 19.40 I 1.90 20.18 2.47 33.60 I 1.30 19.52 0.05 26.30 1 1.80 I 21.60 1 0.26 18.50 1 1.20 1 12.26 1 0.60 17.80 I 1.00 I 19.11 I 0.30 22.80 I 1.50 I NMN I 0.46 25.00 I 1.60 I 23.47 1 0.60 32.60 I 1.10 I 2.32 I 0.00 21.30 I 1.90 I 17.07 I 0.56 12.50 I 0.80 I 36.55 I 0.00 15.30 I 1.20 I 14.48 I 1.98 21.30 I 1.90 I 35.20 1 1.84 42.20 I 2.10 I 15.03 I 0.00 27.50 I 2.10 I 12.47 1 0.00 35.70 I 1.80 I 23.63 I 0.13 28.40 I 1.90 I 1$.29 1 0.00 22.90 I 1, 00 I 24.77 1 0.41 31.00 I 1.70 I 25.70 1 0.00 11.00 I 1.10 1 14.57 1 3.60 20.90 I I 1.50 I I 21.80 1 I 0.99 I 26.60 I I 1.50 I I 21.55 I 0.52 17.20 I I 2.46 I 16.05 I 1.52 1.55 I I 0.61 I I 1.34 1 0.34 i I VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS PEN TR FD EQUITY Relative Sector Allocation (June 30, 2004) 'ILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS PEN TR FD EQUITY Other hdustrl Tech 1.1% 9.5% Toe,;omm Tech 17.3% Finance ConsDisc , ' 17.9% 22.69'0 France ' 19.8% ' Energy 2~~ FtihCare ' 24.5% ' C~. _nts Sector Groups Percent of Current Total Portfolio Over/Under Return ' (Current) Sector % 4-Weeks % Materials -2.98 Industrials 9.47 -1.95 -0.18 Telecommunications Services 2.87 -0.53 14.77 Consumer Discretionary 22.63 11.50 2.32 ' HeaRh Care 24.54 ~1.09> -1.76 Consumer Staples 5.38 -5.86 -2.24 Energy 2.14 -4.45 12.85 ' Financial 17.93 -1.88 -0.55 Information Technology 13.98 -3.35 4.24 Utilities -2.67 ' Other 1.07 1.07 4.72 Mkt. wgt. S8P 5l)D avgs. 1.56 ' Total portfolio avg. -share weighted 1.2 ' 3-4 S8~P 500 Utility Material 2.7% 3.0% Industrl 11.4% Telecorrm ~', ConsCxsc ~> 11.1% HthCare 13.4% Energy '' ; 6.6% Staples 112% ~. .. ~ VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND TOTAL RETURNS 10/31 /97- 10/31 /97- 10/31 /97- 9/30/03- 12/31 /03- 9/30/00 9/30/02 6/30/04 6/30/04 6/30/04 3 Years 5 Years Since Inception* Fiscal Year Calendar Year Equities + 96.4 + 29.2 + 56.9 + 14.1 + 7.7 S&P 500 Index + 63.2 - 4.8 + 37.4 + 16.1 + 3.6 W ~;, Bonds + 13.5 + 37.0 + 39.5 - 0.1 + 0.2 Lehman Bros. Govt/Credit + 16.8 + 42.5 + 51.0 - 0.1 - 0.1 Intermediate Index Total Portfolio + 54.5 + 29.6 + 48.7 + 8.3 + 4.7 60% S&P 500/ 40% Int. Govt./Credit Index + 44.6 + 14.1 + 42.8 + 9.6 + 2.2 * Inception 10/31/97 October 16 17 23 23 24 29 November 04 10 20 20 21 December 04 19 22 23 31 January 20 20 30 February 12 13 17 17 17 25 26 26 March O 1 03 10 19 19 22 22 29 April 02 OS 12 23 [LLAGE OF TEQUESTA PUBLIC SAFETY CONTRIBUTIONS/WITHDRAWALS OCTOBER 1, 2003 TO JUNE 30, 2004 6021.38 3128.92 2,212.01 172.00 6,322.95 6,153.52 6,491.38 7,259.23 6,929.27 7,441.61 7,507.23 6,794.04 443.82 6,378.47 6,888.60 300.00 6,170.00 6,443.26 6,236.23 6,326.37 3-6 894.01 3,576.06 39.51 95.97 102.87 411.47 45.42 3,082.10 27.42 4,422.00 1,908.00 200.00 350.00 4,612.00 203.72 21.53 14.19 22.97 42.34 26 6,860.58 26 1,526.03 26 4,734.85 27 18.10 27 1,715.15 27 43.06 27 1,183.71 May June 06 6,272.69 12 112.90 13 2,142.49 13 4,560.00 24 6,265.84 07 6,247.66 25 6,938.14 30 67.50 30 67.50 30 28.78 $135,868.03 $38,858.08 3-7 VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND Financial Market Review Close Close Close 12/31 /02 12/31 /03 6/30104 S&P's 500 Stock Index 879.82 1,111.92 1,140.84 Prime Rate 4.25% 4.00% 4.25% Federal Funds Rate 1.25% 1.00% 1.25% 90 Day U.S. Treasury Bills 1.19% 0.92% 1.26% 5 Year U. S. Govt Notes 2.73% 3.25% 3.77% 10 Year U.S. Govt Notes 3.81 % 4.25% 4.58% 30 Year U.S. Govt Bonds 4.76% 5.07% 5.29% Total Returns 12 Mos. 12 Mos. 9 Mos. 12/31 /02 12/31 /03 6/30/04 S&P 500 Stock Index - 22.1 % + 28.6% + 16.03% Lehman Bros. lnt. Govt/Credit + 9.8% + 4.3% - 0.05% Index 4-1 ECONOMIC BENCHMARKS AS OF 06/30/04 2000 2001 2002 2003A 2004E 1. Real G.D.P. % 3.50 0.50 2.40 3.10 4.30 2. C.P.I. % 2.60 1.56 2.43 1.90 1.70 3. Industrial Production % 4.20 -5.74 1.48 2.30 2.70 4. Light Vehicle Sales 16.20 16.70 16.80 16.70 16.80 5. Housing Starts (millions of units) 1.60 1.60 1.70 1.85 2.00 6. S&P Reported E.P.S. 50.00 24.90 28.00 49.24 54.00 Change 4 -50 12 76 10 7. S&P Dividends Per Share 16.27 15.74 16.08 17.38 18.76 Change -3 -3 2 8 8 8. Price-Earnings Ratios Range 22 - 31 X 22 - 46 X 22 - 46 X 27 - 38 X 13 - 26 X (One Year-End S&P 500 Index) 6.00 4.00 2.00 0.00 -2.00 -4.00 -6.00 -8.00 Indicator p 2000 ^ 2001 oduction ^ 2002 ^ 2003E ^ 2004E _~ The informaton presented m this report has been developed internally and/or obtained from sources which Northstar Capital Management, Inc. believes to be reliable; however, Northstaz does not guarantee the accuracy, adequacy or ...,...el:.:.:..~ss of such information nor does it guarantee the appropriateness of arty strategy referred [o in tlris report for any particulaz client. Tttis report is provided for informational proposes only and is not to be corrstrncted as advice or a recormnerdation for the purchase or sale of a security. Economic forecasts reflect subjective judgments and assumptions, and rm,.,y,,,..:,.,I events may occur. Therefore, there can be rx assurance that developments will transpire as forecasted in this report. Tttis report reflects the opinion of Northstaz on the date made and is subject to change a[ any time with notice. 4-2 Northstar Capital Management, Inc. SUMMARY OF INVESTMENT POSITION VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND 4806P3 Jurre 30, 2004 Total % Est. Annual Curr Classification Market Value Total Fund Income Yield CASH INSTRUMENTS MONEY MARKET FUNDS 121,469 S.S 753 0.6 TOTAL ASSET CLASS 121,469 5.5 753 0.6 FIXED INCOME BONDS 212,232 9.6 12,807 6.0 U.S. GOVERNMENTS 576,706 26.0 29,245 5.1 TOTAL ASSET CLASS 788,938 35.6 42,052 5.3 COMMON STOCK COMMUNICATION SERVICES 37,324 1.7 0 0.0 CONSUMER DISCRETIONARY 294,169 13.3 227 0.1 CONSUMER STAPLES 69,932 3.2 1,646 2.4 ENERGY 27,880 1.3 0 0.0 FINANCIALS 233,072 10.5 2,551 1.1 HEALTHCARE 319,011 14.4 1,879 0.6 INDUSTRIALS 123,105 5.6 1,200 1.0 TECHNOLOGY 203,082 9.2 224 0.1 TOTAL ASSET CLASS 1,307,575 59.0 7,727 0.6 TOTAL PORTFOLIO 2,217,982 100.0 50,532 2.3 Northstar Capital Management, Inc. PORTFOLIO DETAIL VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND 4806P3 June 30, 2004 Security Call Call Unit Total Market Annual Curr Quantity Description Date Price Cost Cost Price Value Income Yield ('ASH INSTRUMENTS MONIiY MARKET FUNDS S}IORTTERM PAPEK U.S. GOV"T' 121,469 121,469 753 0.6 MONEY MARKET FUNDS TOTAL 121,469 121,469 753 0.6 CASH INSTRUMENTS TOTAL 121,469 121,469 753 0.6 FCKF,D INCOME U.S. GOVERNMENTS AGENCII?S 25,000 FEDERAL IIOME LOAN BANKS 98.69 24,672 106.97 26,742 1,560 5.8 G.240`%~ Due 12-1 1-06 50,000 FEDERAL HOME LOAN MTG CORP. 101.5(, 50,779 99.72 49,859 1,750 3.5 3.500'% Due 09-15-07 25,000 FEDERAL HOME: LOAN BANK BOND 99.20 24,8.0 104.44 26,109 1,312 5.0 5.250% Due 02-13-09 50,000 FEDERAL HOME LN MTG CORP. 100.00 50,000 98.63 49,315 2,125 4.3 4.250'% Due OS-OS-10 25,000 FED[:RAL HOME LOAN BANK 07-23-04 100.00 100.19 25,047 100.28 25,070 1,500 6.0 6.000'% Due 07-23-08 25,000 FEDERAL 110ME LOAN BANK 08-09-04 100.00 100.00 25,000 100.41 25,102 1,575 6.3 6.300% Due 08-09-11 50,000 f~ED HOME LOAN BANK 09-30-04 100.00 100.09 50,047 100.12 50,062 2,810 5.6 5.620'% Due 09-30-13 50,000 FEDERAL HOME LOAN BANK 10-18-04 100.00 99.98 49,992 100.75 50,375 2,775 5.5 5.550% Duc 10-18-11 50,000 FEDERAL HOME LOAN BANK 04-15-OS 100.00 100.00 50,000 97.41 48,703 2,500 5.1 5.000% Due 04-15-14 50,000 FEDERAL FARM CREDIT 08-25-OS 100.00 100.00 50,000 100.47 50,234 2,500 5.0 5.000'% Due 08-25-10 50,000 FED HOME LOAN BANK 09-30-OS 100.00 100.00 50,000 99.62 49,812 2,050 4.1 4.100`% Due 03-30-09 50,000 FEDERAL HOME LOAN BANK 10-17-OS 100.00 100.00 50,000 99.37 49,687 2,625 5.3 5.250% Due 10-17-13 50,000 FEDERAL HOME LOAN BANK 01-23-06 100.00 100.00 50,000 98.87 49,437 2,600 5.3 5.200% Due 01-23-14 25,000 FEDERAL HOME LOAN MORTGAGE 03-OS-07 100.00 100.50 25,125 104.78 26,195 1,562 6.0 CORP. 6.250% Duc 03-OS-12 575,462 576,706 29,245 5.1 U.S. GOVERNMENTS TOTAL 575,462 576,706 29,245 5.1 Northstar Capital Management, Inc. PORTFOLIO DETAIL VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND 4806P3 June 30, 2004 Securih' Call Call Unit Total Market Annual Curr Quantity Description Date Price Cost Cost Price Value Income Yield BONDS CORPORATES 25,000 AMERI"fECH CAP FUNDING CORP 6.300% Due 10-15-04 25,000 PENNSYLVANIA PWR & LT CO 6.500% Due 04-O1-OS 25,000 PUBLIC SVC ELEC & GAS CO 6.250°/~ Due Ol -Ol -07 25,000 BANK[?RS TR NY CORP SUB MTN BE 6.700%, Duc 10-O1-07 25,000 CSX TRANS INC EQUIP TR 93-A 6.480% Due 03-15-08 25,000 FIRST UNION CORP 6.000°/~ Due ] 0-30-08 25,000 VER[LON NEW ENGLAND INC 6.500°/, Due 09-15-11 25,000 CREDIT SUISSE 1'B USA 6.500%~ Due 01-15-12 BONDS TO~fAL FIXED INCOME: TOTAL COMMON STOCK COMMUNICATION SERVICES CELLULAR/WIRELESS TELECOM 1,400 NEXTEL COMMUNICATIONS CL A COMMUNICATION SERVICES TOTAL CONSUMER DISCRETIONARY AUDIO/V[DEO PRODUCTS 300 HARMAN INTERNATIONAL CASINO & GAMING 1,400 INTERNATIONAL GAME TECH RETAIL-SPECIALTY 1,100 BED BATH AND BEYOND 1,000 COACH, INC. 600 LOWE'S COMPANIES 99.12 24,781 101.18 25,296 1,575 6.2 98.22 24,556 102.94 25,735 1,625 6.3 100.00 25,000 106.30 26,575 1,562 5.9 99.57 24,892 109.26 27,315 1,675 6.1 101.42 25,356 108.55 27,137 1,620 6.0 99.09 24,773 106.68 26,670 1,500 5.6 100.87 25,219 106.55 26,638 1,625 6.1 101.13 25,282 107.46 26,865 1,625 6.0 199,858 212,232 12,807 6.0 199,858 212,232 12,807 6.0 775,320 788,938 42,052 5.3 27.12 37,962 26.66 37,324 0 0.0 37,962 37,324 0 0.0 82.28 24,685 91.00 27,300 20.10 28,137 38.60 54,040 30.62 33,685 38.45 42,295 39.20 39,198 45.19 45,190 43.14 25,884 52.55 31,530 98,767 119,015 15 0.1 140 0.3 0 0.0 0 0.0 72 0.2 72 0.1 RES"I'AURANTS 1,100 STARBUCKS CORP COM 25.48 28,026 43.49 47,839 0 0.0 Northstar Capital Management, Inc. PORTFOLIO DETAIL VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND 4806P3 June 30, 2004 Security Call Call Unit Total Market Annual Curr Quantity Description Date Price Cost Cost Price Value Income Yield [:-COMMERCE/SERVICES 500 EBAY INC. 65.19 32,595 91.95 45,975 0 0.0 CONSUMER DISCRETIONARY TOTAL 212,210 294,169 227 0.1 CONSUMER STAPLES RI:"PAIL -GENERAL MERCHANDISE 500 WAL MART STORES INC 45.68 22,841 52.76 26,380 190 0.7 1IOUSI7lOl_D PRODUCTS - PERSONAL CARIi 800 PROCTER & GAMBLE CO 44.78 35,825 54.44 43,552 1,456 3.3 CONSUMER STAPLES TOTAL 58,665 69,932 1,646 2.4 ENERGY OIL & GAS -DRILLING & EQUIPMEiJT 500 SMITH INTERNATIONAL INC 54.50 27,250 55.76 27,880 0 0.0 ENERGY TOTAL 27,250 27,880 0 0.0 FINANCIALS BANKS & THRIFTS 1,000 WACIIOVIA CORP. 37.82 37,819 44.50 44,500 1,600 3.6 PINANCIAI. -CONSUMER/DIVERSIFIED 600 AMBAC FINANCIAL GROUP INC. 70.78 42,466 73.44 44,064 264 0.6 1,000 AMERICAN EXPRESS CO 37.32 37,325 51.38 51,380 400 0.8 700 CAPITAL ONE FINANCIAL CORP. 47.53 33,269 68.38 47,866 77 0.2 700 MOODY'S CORP. 48.70 34,088 64.66 45,262 _210 0.5 147,149 188,572 951 0.5 FINANCIALS TOTAL 184,968 233,072 2,551 1.1 HEALTHCARE HEALTHCARE-BIOTECHNOLOGY 700 AMGEN INC 45.93 32,154 54.57 38,199 0 0.0 800 GENENTECE{ INC NEW 44.37 35,493 56.20 44,960 0 0.0 67,647 83,159 0 0.0 HEALTHCARE -DRUGS 1,100 PFILER INC 33.90 37,287 34.28 37,708 748 2.0 1,400 TEVA PHARMACEUTICAL 28.53 39,944 33.59 47,026 322 0.7 77,231 84,734 1,070 1.3 HEALTHCARE -MEDICAL PROD/SUPPLY 300 ALCON INC 77.07 23,122 78.65 23,595 436 1.8 Northstar Capital Management, Inc. ~~ PORTFOLIO DETAIL VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND 4806P3 Jtr~te 30, 1004 Securih~ Call Call l~nit Total Market Annual Curr Quantity Description Date Price Cost Cost Price Value Income Yield 900 MEDTRONIC INC 32.37 29,136 48.72 43,848 261 O.G 800 STRYKER CORPORATION 32.94 26,350 55.00 44,000 1 12 0.3 500 VARIAN MEDICAL 85.01 42,504 79.35 39,675 0 0.0 121,112 151,118 809 0.5 HEALTHCARE TOTAL 265,990 319,011 1,879 0.6 INDUSTRIALS AEROSPACE/DEFENSE 600 L3 COMMUNICATIONS HLDGS. 63.50 38,099 66.80 40,080 240 0.6 ELECTRICAL EQUIPMENT 1,200 GENERAL ELEC CO 27.59 33,109 32.40 38,880 960 2.5 SCHOOLS 500 APOLLO GROUP, INC. 25.49 12,743 88.29 44,145 0 0.0 INDUSTRIALS TOTAL 83,951 123,105 1,200 1.0 "TECHNOLOGY COMPUTERS -HARDWARE 1,200 CISCO SYS [NC 14.42 17,298 23.70 28,440 0 0.0 1,100 DELL INC. 28.92 31,811 35.82 39,402 0 0.0 49,109 67,842 0 0.0 COMPUTERS -SOFTWARE/SERVIC'ES 1,400 MICROSOFTCORP 34.35 48,091 28.56 39,984 224 0.6 1,200 SYMANTEC CORPORATION 2LG3 25,958 43.78 52,536 0 0.0 74,049 92,520 224 0.2 SEMICONDUCTORS 1,600 MARVELL TECHNOLOGY GROUP 22.45 35,916 26.70 42,720 0 0.0 TECHNOLOGY TOTAL 159,074 203,082 224 0.1 COMMON STOCK TOTAL 1,030,071 1,307,575 7,727 0.6 TOTAL POKTFOLIO 1,926,860 2,217,982 50,532 2.3 June 30, 2004 Wachovia Securities Attn: Fred Kenney 3399 PGA Blvd Ste 400 North Palm Beach, Florida 33408-2713 CUSTODY NO. O1K-963853 Please use this letter as your notification that we executed the following trade(s): Account: VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND 4806P3 Trade Settle Other Exchange Date Date Activity Quantity Symbol Security Price Principal Commis. Fee Fee Net Amount Broker 04-06-04 04-12-04 BUY 100 dna GENENTECH INC 110.3800 11,038.00 55.00 0.00 0.00 11,093.00 WACHOVIA NEW SECURITIES 04-06-04 04-12-04 BUY 300 har HARMAN 82.1000 24,630.00 55.00 0.00 0.00 24,685.00 WACHOVIA INTERNATIONAL SECURITIES 04-06-04 04-12-04 BUY 400 mrvl MARVELL 46.7500 18,700.00 60.00 0.00 0.00 18,760.00 WACHOVIA TECHNOLOGY' SECURITIES GROUP 04-06-04 04-12-04 BUY 200 ebay EBAY INC. 74.0900 14,818.00 55.00 0.00 0.00 14,873.00 WACHOVIA SECURITIES 04-06-04 04-12-04 BUY 200 bbby BED BATH AND 39.7000 7,940.00 55.00 0.00 0.00 7,995.00 WACHOVIA BEYOND SECURITIES 04-06-04 04-12-04 SELL 700 wfc WELLS FARGO & CO 56.7900 39,753.00 105.00 0.00 0.94 39.647.06 WACHOVIA NEW SECURITIES 04-27-04 04-30-04 SELL 200 apol APOLLO GROUP, INC. 93.2300 18,646.00 55.00 0.00 0.44 18,590.56 WACHOVIA SECURITIES 04-27-04 04-30-04 SELL 400 acs AFFILIATED 48.0800 19,232.00 60.00 0.00 0.46 19,171.54 WACHOVIA COMPtiTER SECURITIES SERVICES, INC. OS-04-04 05-07-04 SELL 400 ntap NETWORK 19.1800 7,672.00 40.00 0.00 0.18 7,631.82 WACHOVIA APPLIANCE SECURITIES OS-04-04 OS-07-04 SELL 100 ntap NETWORK 19.1700 1,917.00 10.00 0.00 0.05 1,906.95 WACHOVIA APPLIANCE SECURITIES OS-04-04 OS-07-04 SELL 1,100 ntap NETWORK 19.1600 21,076.00 110.00 0.00 0.50 20,965.50 WACHOVIA APPLIANCE SECURITIES OS-19-04 OS-24-04 BUY 300 111 L3 61.0500 18,315.00 55.(10 0.00 0.00 18,370.00 WACHOVIA COMMUNICATIONS SECURITIES HLDGS. 06-07-04 06-10-04 BUY 300 111 L3 65.5800 19,674.00 55.00 0.00 0.00 19,729.00 WACHOVIA COMMUNICATIONS SECURITIES HLDGS. 06-07-04 06-10-04 BUY' 300 acl ALCON INC. 76.8900 23,067.00 55.00 0.00 0.00 23,122.00 WACHOVIA SECURITIES 06-17-04 06-22-04 SELL 400 sbu~ STARBUCKS CORP 42.9700 17,188.(10 60.00 0.00 0.41 17,127.59 WACHOVIA COM SECURITIES 06-17-04 06-22-04 SELL 200 syk STRYKER 53.8500 10,770.00 55.00 0.00 0.26 10,714.74 WACHOVIA CORPORATION SECURITIES 06-17-04 06-22-04 BUY 500 sii SMITH 54.3500 27,175.00 75.00 0.00 0.00 27,250.00 WACHOVIA INTERNATIONAL INC SECURITIES THANK YOU Northstar Capital Management, Inc. t ProxyEdge -Vote Summary by Account with Ballot Detail and Ballot Comments Meeting Date Range: 04/01/2004 to 04/30/2004 Selected Groups - Tequesta Vote Account - TEQUESTA PUBLIC SAFETY ' STRYKER CORPORATION SYK Issuer: 863667 City: ISIN: Country: UNITED STATES SEDOL: ' Vote Group: GLOBAL Agenda: 932104730 -MANAGEMENT Proposal Vote Report Date: 05/06/2004 Page 1 of 14 Annual Meeting Date: 04/2012004 Holdings Reconciliation Date: 02/27/2004 Vote Deadline Date: 04!20/2004 Number Cast MRV Proposal 01 For For ELECTION OF DIRECTORS 02 For For APPROVE AUTHORIZED COMMON STOCK INCREASE Custodian Internal Stock Voted Ballot Received Last Date Account Account Class Shares Shares Date Vote Date Confirmed OOOOOON01 K963853 A 4806P3 101 500 500 03/12/2004 04/16/2004 04/16/2004 1 1 1 1 1 1 1 1 1 ProxyEdge -Vote Summary by Account with Ballot Detail and Ballot Comments Meeting Date Range: 04/01/2004 to 04/30/2004 Report Date: 05/06/2004 Selected Groups - Tequesta Vote Page 3 of 14 Account - TEQUESTA PUBLIC SAFETY WACHOVIA CORPORATION VV6 Annual Meeting Date: 04/2012004 Issuer: 929903 City: Holdings Reconciliation Date: 0 211 812 0 0 4 ISIN: Country: UNITED STATES Vote Deadline Date: 04/20/Z004 SEDOL: Vote Group: GLOBAL Agenda: 932106431 -MANAGEMENT Proposal Vote Number Cast MRV Proposal 01 For For ELECTION OF DIRECTORS 02 For For RATIFY APPOINTMENT OF INDEPENDENT AUDITORS 03 Against Agatnst S/H PROPOSAL -CORPORATE GOVERNANCE 04 Against Against SM PROPOSAL - POLITICAUGOVERNMENT 05 Against Against S/H PROPOSAL -BOARD OF DIRECTORS Custodian Internal Stock Voted Ballot Received Last Date Account Account Class Shares Shares Date Vote Date Confirmed OOOOOON01K 963853A 4806P3 102 1,000 1,000 03/16/2004 04/16/2004 04!16/2004 ProxyEdge -Vote Summa b Account with Ballot Detaii and Ballot Comments rY Y ' Meeting Date Range: 04/01!2004 to 04/30/2004 Selected Groups - Tequesta Vote Account - TEQUESTA PUBLIC SAFETY ' AMERICAN EXPRESS COMPANY AXP Issuer: 025816 City: ' ISIN: Country: UNITED STATES SEDOL: Vote Group: GLOBAL Agenda: 932103473 -MANAGEMENT Proposal Vote Number Cast MRV Proposal 01 For For ELECTION OF DIRECTORS ' 02 For For RATIFY APPOINTMENT OF INDEPENDENT AUDITORS 03 Against Against S/H PROPOSAL -BOARD OF DIRECTORS 04 Against Against S/H PROPOSAL - POLITICAUGOVERNMENT Report Date: 05/06/2004 Page 5 of 14 Annual Meeting Date: 04/26/2004 Holdings Reconciliation Date: 02/27/2004 Vote Deadline Date: 04/26/2004 Custodian Internal Stock Voted Ballot Received Last Date Account Account Class Shares Shares Date Vote Date Confirmed OOOOOON01K963853 A 4806P3 109 1,000 1,000 03/16/2004 04/26/2004 1 1 1 1 1 1 1 1 1 ProxyEdge -Vote Summary by Account with Ballot Detail and Ballot Comments Meeting Date Range: 04/01/2004 to 04/30/2004 Selected Groups - Tequesta Vote Account - TEQUESTA PUBLIC SAFETY ' MOODY'S CORPORATION MCO Issuer: 615369 City: ISIN: Country: UNITED STATES SEDOL: ' Vote Group: GLOBAL Agenda: 932116064 -MANAGEMENT Proposal Vote Report Date: 05/06/2004 Page 7 of 14 Annual Meeting Date: 04/27/2004 Holdings Reconciliation Date: 0310112004 Vote Deadline Date: 04/27/2004 Number Cast MRV Proposal I For For ELECTION OF DIRECTORS II For For AMEND INCENTIVE STOCK OPTION PLAN III For For ADOPT INCENTIVE STOCK OPTION PLAN IV For For RATIFY APPOINTMENT OF INDEPENDENT AUDITORS V Against Against S/H PROPOSAL -CORPORATE GOVERNANCE Custodian Internal Stock Voted Ballot Received Last Date Account Account Class Shares Shares Date Vote Date Confirmed OOOOOON01K963853A 4806P3 105 700 700 03/26/2004 04/26/2004 ProxyEdge -Vote Summary by Account with Ballot Detail and Ballot Comments Meeting Date Range: 04/01/2004 to 04/30/2004 Report Date: 05/06/2004 Selected Groups - Tequesta Vote Page 9 of 14 Account - TEQUESTA PUBLIC SAFETY WELLS FARGO 8 COMPANY Annual Meeting Date: 04/27/2004 WFC Issuer: 949748 City; Holdings Reconciliation Date: 03/0912004 ISIN: Country: UNITED STATES Vote Deadline Date: 04/27/2004 SEDOL: Vote Group: GLOBAL Agenda: 932109538 -MANAGEMENT Proposal Vote Number Cast MRV Proposal 01 For For ELECTION OF DIRECTORS 02 For For ADOPT OMNIBUS STOCK OPTION PLAN 03 For For RATIFY APPOINTMENT OF INDEPENDENT AUDITORS 04 Against Against S/H PROPOSAL -FORM SHAREHOLDER ADVISORY COMMITTEE 05 Against Against S/H PROPOSAL -CORPORATE GOVERNANCE 06 Against Against S/H PROPOSAL -CORPORATE GOVERNANCE 07 Against Against MISCELLANEOUS SHAREHOLDER PROPOSAL Custodian Internal Stock Voted Ballot Received Last Date Account Account Class Shares Shares Date Vote Date Confirmed OOOOOON01 K963853 A 4806P 3 101 700 700 03/22/2004 04/26/2004 ' ProxyEdge -Vote Summa b rY Y Account with Ballot Detail and Ballot Comments Meeting Date Range: 04/01/2004 to 04/30/2004 Report Date: 05/06/2004 ' Selected Groups - Tequesta Vote Page 11 of 14 Account - TEQUESTA PUBLIC SAFETY GENERAL ELECTRIC COMPANY Annual Meeting Date: 04128/2004 GE Issuer: 369604 City; Holdings Reconciliation Date: 03/01/2004 ISIN: Country: UNITED STATES Vote Deadline Date: 04/28/2004 SEDOL: ' Vote Grou p: GLOBAL Agenda: 932103348 -MANAGEMENT Proposal Vote Number Cast MRV Proposal OA For For ELECTION OF DIRECTORS ' OB OC For For For For RATIFY APPOINTMENT OF INDEPENDENT AUDITORS ADOPT/AMEND EXECUTIVE INCENTIVE BONUS PLAN 01 Against Against SM PROPOSAL -ADOPT CUMULATIVE VOTING 02 Against Against S/H PROPOSAL -ANIMAL RIGHTS 03 Against Against S/H PROPOSAL -OPT OUT OFANTI-TAKEOVER STATUTE 04 Against Against S/H PROPOSAL -HEALTH ISSUES 05 Against Against MISCELLANEOUS SHAREHOLDER PROPOSAL 06 Against Against MISCELLANEOUS SHAREHOLDER PROPOSAL ' 07 08 Against Against Against Against S/H PROPOSAL -ELIMINATE CUMULATIVE VOTING S/H PROPOSAL - RESCIND OR ALLOW SHAREHOLDER TO RATIFY POISON PILL 09 Against Against S/H PROPOSAL -LIMIT COMPENSATION 10 Against Against MISCELLANEOUS SHAREHOLDER PROPOSAL ' 11 Against Against MISCELLANEOUS SHAREHOLDER PROPOSAL 12 Against Against S/H PROPOSAL -ENHANCE STOCK VALUE VIA MERGER/SALE ' 13 Against Against S/H PROPOSAL -OVERRIDE CSA VOTE RESTRICTIONS 14 Against Against S/H PROPOSAL -REQUIRE MAJORITY OF DIRECTORS TO BE INDEPENDENT 15 Against Against S/H PROPOSAL - POLITICAUGOVERNMENT ' Custodian Internal Stock Voted Ballot Received Last Date Account Account Class Shares Shares Date Vote Date Confirmed ' OOOOOON01 K963853 A 4806P3 103 1,200 1,200 03/08/2004 04/26/2004 04/27/2004 Pro Edge -Vote Summa b Account with Ballot Detail and Ballot Comments XY IY Y ' Meeting Date Range: 04/01/2004 to 04/30/2004 Selected Groups - Tequesta Vote Account • TEQUESTA PUBLIC SAFETY ' CAPITAL ONE FINANCIAL CORPORATION COF Issuer: 14040H Clty: ISIN: Country: UNITED STATES SEDOL: Vote Group: GLOBAL Agenda: 932093824 -MANAGEMENT Proposal Voie ' Number Cast MRV Proposal 01 For For ELECTION OF DIRECTORS 02 For For RATIFY APPOINTMENT OF INDEPENDENT AUDITORS 03 For For ADOPT INCENTIVE STOCK OPTION PLAN Report Date: 05/06/2004 Page 13 of 14 Annual Meeting Date: 04/29/2004 Holdings Reconciliation Date: 02/27/2004 Vote Deadline Date: 04/29/2004 Custodian Internal Stock Voted Ballot Received Last Date Account Account Class Shares Shares Date Vote Date Confirmed OOOOOON01K963853 A 4806P3 105 700 700 03/25/2004 04/26/2004 04/27!2004 ProxyEdge -Vote Summary by Accoc,~ ~t with Ballot Detail and Ballot Comments Meeting Date Range: 05/01/2004 to 05/31/2004 Report Date: 06/07/2004 Selected Groups - Tequesta Vote Page 1 of 12 Account - TEQUESTA PUBLIC SAFETY AMBAC FINANCIAL GROUP, INC. ABK Annual Meeting Date: 05/04/2004 Issuer: 023139 City: Holdings Reconciliation Date: 03109/2004 ISIN: Country: UNITED STATES Vote Deadline Date: 05/04/2004 SEDOL: Vote Group: GLOBAL Agenda: 932 122118 -MANAGEMENT Proposal Vote Number Cast MRV Proposal 01 For For ELECTION OF DIRECTORS 02 For For APPROVE AUTHORIZED COMMON STOCK INCREASE 03 For For AMEND OMNIBUS STOCK OPTION PLAN 04 For For RATIFY APPOINTMENT OF INDEPENDENT AUDITORS Custodian Internal Stock Voted Ballot Received Last Date Account Account Class Shares Shares Date Vote Date Confirmed OOOOOON01 K963853 A 4806P3 108 600 600 03/30/2004 05/03/2004 05/03/2004 ProxyEdge -Vote Summary by Acct, .c with Ballot Detail and Ballot Comments Meeting Date Range: 05/01/2004 to 05/31/2004 Report Date: 06/07/2004 ' Selected Groups - Tequesta Vote Page 3 of 12 Account - TEQUESTA PUBLIC SAFETY AMGEN INC. Annual Meeting Date: 05/13/2004 AMGN Issuer: 031162 City: Holdings Reconciliation Date: 03/19/2004 ISIN: Country: UNITED STATES Vote Deadline Date: 05/13/2004 SEDOL: Vote Group: GLOBAL Agenda: 932108637 -MANAGEMENT Proposal Vote ' Number Cast MRV Proposal 01 For For ELECTION OF DIRECTORS 02 For For RATIFY APPOINTMENT OF INDEPENDENT AUDITORS ' 3A Against Against MISCELLANEOUS SHAREHOLDER PROPOSAL 3B Against Against S/H PROPOSAL -FORM SHAREHOLDER ADVISORY COMMITTEE ' Custodian Internal Stock Voted Ballot Received Last Date Account Account Class Shares Shares Date Vote Date Confirmed OOOOOON01K963853 A 4806P3 100 700 700 04/12/2004 05/10/2004 05/10/2004 ProxyEdge -Vote Summary by Accc ,with Ballot Detail and Ballot Comments Meeting Date Range: 05/01/2004 to 05/31/2004 Selected Groups - Tequesta Vote Account - TEQUESTA PUBLIC SAFETY TEVA PHARMACEUTICAL INDUSTRIES LIMIT TEVA Issuer: 881624 City: ISIN: Country: UNITED STATES SEDOL: Vote Group: GLOBAL Agenda: 932153238 -MANAGEMENT Proposal Vote Number Cast MRV Proposal 01 For For CHANGE STOCK EXCHANGE LISTING 02 For For CHANGE STOCK EXCHANGE LISTING 3A For For CHANGE STOCK EXCHANGE LISTING 38 For For CHANGE STOCK EXCHANGE LISTING 3C For For CHANGE STOCK EXCHANGE LISTING 3D For For CHANGE STOCK EXCHANGE LISTING 3E For For CHANGE STOCK EXCHANGE LISTING 04 For For CHANGE STOCK EXCHANGE LISTING 05 For For CHANGE STOCK EXCHANGE LISTING Report Date: 06/07/2004 Page 5 of 12 Annual Meeting Date: 05/2012004 Holdings Reconciliation Date: 04/15/2004 Vote Deadline Date: 05N3/2004 Custodian Internal Stock Voted Ballot Received Last Date Account Account Class Shares Shares Date Vote Date Confirmed OOOOOON01 K963853 A 4806P3 209 700 700 04/23/2004 05/14/2004 05/14/2004 ProxyEdge -Vote Summary by Acct. ;with Ballot Detail and Ballot Comments Meeting Date Range: 05/01/2004 to 05/31/2004 Selected Groups - Tequesta Vote Account - TEQUESTA PUBLIC SAFETY NEXTEL COMMUNICATIONS, INC. NXTL issuer: 65332V City: ISIN: Country: UNITED STATES SEDOL: Vote Group: GLOBAL Agenda: 932136383 -MANAGEMENT Proposal Vote Number Cast MRV Proposa! 01 For For ELECTION OF DIRECTORS 02 For For RATIFY APPOINTMENT OF INDEPENDENT AUDITORS 03 For For AMEND STOCK PURCHASE PLAN Report Date: 06/07/2004 Page 7 of 12 Annual Meeting Date: 05/27/2004 Holdings Reconciliation Date: 04/02!2004 Vote Deadline Date: 05/27/2004 Custodian Internal Stock Voted Ballot Received Last Date Acxount Account Class Shares Shares Date Vote Date Confirmed OOOOOON01K963853 A 4806P3 103 1,400 1,400 04/14/2004 05/24/2004 05/25/2004 ProxyEdge -Vote Summary by Acc~ .. ~t with Ballot Detail and Ballot Comments Meeting Date Range: 05/01/2004 to 05/31/2004 Report Date: 06/07/2004 Selected Groups - Tequesta Vote Page 9 of 12 Account - TEQUESTA PUBLIC SAFETY LOWE'S COMPANIES, INC. LOW Annual Meeting Date: 0512812004 Ho ldings Reconciliation Date: 04/01!2004 Issuer: 548661 City: ISIN: Country: UNITED STATES Vote Deadline Date: 05/28/2004 ' SEDOL: Vote Group: GLOBAL Agenda: 932151525 -MANAGEMENT Proposal Vote Number Cast MRV Proposal ' 01 For For ELECTION OF DIRECTORS 02 For For RATIFY APPOINTMENT OF INDEPENDENT AUDITORS ' Custodian Internal Stock Voted Ballot Received Last Date Account Account Class Shares Shares Date Vote Date Confirmed OOOOOON01K963853 A 4806P3 107 600 600 04/21!2004 05/24/2004 05/25/2004 ProxyEdge -Vote Summary by Accc.....t with Ballot Detail and Ballot Cpmments Meeting Date Range: 05/01/2004 to 05!31/2004 Selected Groups - Tequesta Vote Account - TEQUESTA PUBLIC SAFETY MARVELL TECHNOLOGY GROUP LTD. Issuer: G5878H City: ISIN: Country: UNITED STATES SEDOL: Vote Group: GLOBAL Agenda: 932 159610 -MANAGEMENT Proposal Vote Number Cast MRV Proposal 01 For For ELECTION OF DIRECTORS 02 For For RATIFY APPOINTMENT OF INDEPENDENT AUDITORS 03 For For AMEND OMNIBUS STOCK OPTION PLAN 04 For For APPROVE STOCK SPLIT Report Date: 06/07/2004 Page 11 of 12 Annual Meeting Date: 05/28/2004 Holdings Reconciliation Date: 04/14/2004 Vote Deadline Date: 05/2812004 Custodian Internal Stock Voted Ballot Received Last Date Account Account Class Shares Shares Date Vote Date Confirmed OOOOOON01 K963853 A 4808P3 105 800 800 04/28/2004 05/24/2004 05/25/2004 ProxyEdge -Vote Summary by Account with Ballot Detail and Ballot Comments Meeting Date Range: 06/01!2004 to 06/30/2004 Report Date: 06/30/2004 Selected Groups - Tequesta Vote Page 1 of 4 Account - TEQUESTA PUBLIC SAFETY VARIAN MEDICAL SYSTEMS, INC. VAR Special Meeting Date: 06/10/2004 Issuer: 92220P City: Holdings Reconciliation Date: 04112/2004 ISIN: Country: UNITED STATES Vote Deadline Date: 06/10/2004 SEDOL: Vote Group: GLOBAL Agenda: 932166754 -MANAGEMENT Proposal Vote Number Cast MRV Proposal 01 For For APPROVE AUTHORIZED COMMON STOCK INCREASE Custodian Internal Stock Voted Ballot Received Last Date Account Account Class Shares Shares Date Vote Date Confirmed OOOOOON01K963853A 4806P3 105 500 500 0 5/04/2004 06/09/2004 06/09/2004 ProxyEdge -Vote Summary by Account with Ballot Detail and Ballot Comments Meeting Date Range: 06/01/2004 to 06/30/2004 Report Date: 06/30/2004 Selected Groups - Tequesta Vote Page 3 of 4 Account - TEQUESTA PUBLIC SAFETY EBAY INC. Annual Meeting Date: 06/24/2004 EBAY Issuer: 278642 City: Holdings Reconciliation Date: 04128/2004 ISIN: Country: UNITED STATES Vote Deadline Date: 06/2412004 SEDOL: Vote Group: GLOBAL Agenda: 932 168924 -MANAGEMENT Proposal Vote Number Cast MRV Proposal 01 For For ELECTION OF DIRECTORS 02 For For AMEND INCENTIVE STOCK OPTION PLAN TO INCREASE SHARES 03 For For AMEND INCENTIVE STOCK OPTION PLAN TO INCREASE SHARES 04 For For APPROVE AUTHORIZED COMMON STOCK INCREASE 05 For For RATIFY APPOINTMENT OF INDEPENDENT AUDITORS 06 For Against S/H PROPOSAL -FORM SHAREHOLDER ADVISORY COMMITTEE Custodian Internal Stock Voted Ballot Received Last Date Account Account Class Shares Shares Date Vote Date Confirmed OOOOOON01 K963853 A 4806P3 103 500 500 05/14/2004 06/24/2004 CORPORATE BIOGRAPHIES _.. ~ „~ I _ ,/ ~~ 8-1 CELLULAR/WIRELESS TH:LECOM NEXTF,L COMMUNICATIONS 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 e-mail and text messaging and Nextel Online services, which provide wireless access to the Internet, an organization's internal databases and other applications. AtJD10/VIDEO PRODUC"TS HARMAN INTERNATIONAL Harman International Industries designs, manufactures and markets high-fidelity audio products and electronic systems for the consumer and professional markets. The Consumer Systems Group has operating segments that design, manufacture and market audio and electronic systems for vehicle, home audio, video and computer applications. The Professional Group designs, manufactures and markets loudspeakers and electronics used by audio professionals in concert halls, stadiums, airports and other buildings and recording, broadcast, cinema and music reproduction applications. CASINO & GAMING INTERNATIONAL GAME TECHNOLOGY The Company is engaged in the design, manufacture and marketing of computerized casino gaming products and operates proprietary gaming systems. ~ -~_ ~ -= s-2 ~ ~ L _:-~l RETAIL - SPECIALTY 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. 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 COMPANIES 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. RESTAURANTS STARBLICKS 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. -~ r .i 8-3 E-COMMERCE/SERVICES F~BAY, 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. RETALL-GENERAL MERCHANDISE WALMART STORES, INC. Wa1Mart Stores, Inc. operates discount stores and Supercenters, as well as Sam's Clubs. The Company's Wa1Mart discount stores and Supercenters offer merchandise such as apparel, housewares, small appliances, electronics, and hardware. Wa1Mari operates in the United States, Canada, Argentina, Brazil, Germany, Mexico, and Puerto Rico, as well as joint ventures in China and Korea. r .~ ------~ 8-4 HOt1SEHOL,D PRODUCTS -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. 0[L & GAS- DRILLING EQUIPMENT SMITH INTERNATIONAL INC. Smith International Inc. is a worldwide supplier of products and services to the oil and gas exploration and production industry, the petrochemical industry and other industrial markets. The Company provides a line of products and engineering services, including drilling and completion fluid systems, solids-control equipment, waste-management services, production chemicals, three-cone and diamond drill bits, turbines, fishing services, drilling tools, underreamers, casing exit and multilateral systems, packers and liner hangers. 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. _-----J I 8-5 FINANCIAL -CONSUMER/UIVERSIFIID AMBAC FINANCIAL 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 through its principal operating subsidiary, Ambac Assurance Corporation. Through its fmancial 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. AMERICAN 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. ~ ~ _ ~>i 8-6 ~ ~ FINANCIAL-CONSUMER DIVERSIFIED CONTD.. MOODYS CORPORATION 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. HEALTHCARE-B10T'ECHNOLOGY 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. GENENTECHINCORPORATED 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 Pulmozyme. L --~ ~I g-7 _.....J __y---~ HEALTHCARE - DR[1GS ~ ~ PFIZER 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 ammal health products such as anti-infective medicines and vaccines. TEVA 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 HEALTHCARE -MEDICAL PRODUCTS/SUPPLIES s~ ALCON INC. ``'~ Alcon Inc. develops, manufactures and markets pharmaceuticals, surgical equipment and devices and consumer \ eye care products that treat eye diseases and disorders and promote the general health and function of the human 1 eye. It has local operations in over 70 countries and its products are sold in more than 180 countries around the world. MEDTRONIC INC. Medtronic, Inc. provides device-based therapies that restore health, extend life, and alleviate pain. The Company'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. STRYKER 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. VARIAN MEDICAL SYSTEMS. INC. Varian Medical Systems, Inc. is principally engaged in the design and production of integrated systems of equipment and software for treating cancer with radiation therapy, as well as x-ray tubes for original equipment manufacturers (or OEMs), replacement x-ray tubes and imaging subsystems. ~ ~ ~ ~i 8-9 AEROSPACE/DEFENSE L-3 COMMUNICATIONS HOLDINGS INC. L-3 Communications Holdings, Inc. is a merchant supplier of secure communications and intelligence, surveillance and reconnaissance systems, training, simulation and support services, aviation products and aircraft modernization, as well as specialized products. The Company's customers include the United States Department of Defense and prime contractors thereof, certain United States Government intelligence agencies, major aerospace and defense contractors, foreign governments, commercial customers and certain other United States federal, state and local government agencies. ELECTRICAL EQUIPMENT GENERAL ELECTRIC 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. SCHOOLS APOLLO GRO[IP. 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. . ~_ [ -~ ~ ~~ ~ 8-10 ~~ ~~ 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. DELL COMPUTER 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% COMPUTERS-SOF'TWARElSERVICES 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. 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'I'ECHNOLOGYGROUP 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 Tosluba. ~ ~ .. 8-12