HomeMy WebLinkAboutAgenda Fire Pension 050714THE RESOURCE CENTERS , LLC
4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410
Phone (561) 624-3277 Fax (561) 624-3278 WWW.RESOURCECENTERS.COM
PALM BEACH GARDENS FIREFIGHTERS’
PENSION FUND
Meeting of Wednesday, May 7, 2014
Location: City Hall, Council Chambers
Palm Beach Gardens City Hall
10500 North Military Trail
Palm Beach Gardens, FL 33410
Time: 1 PM
AGENDA
1. Call Meeting to Order
2. Public Comments
3. Minutes:
• Regular Meeting Held on January 13, 2014
• Regular Meeting Held on March 10, 2014
• Special Meeting Held on April 17, 2014
4. ICMA Discussion/Presentation: (Cary Scaglione)
5. Presentation of the 9/30/2014 Actuarial Valuation Report (Doug Lozen)
6. Investment Monitor Report: The Bogdahn Group (Dan Johnson)
• GHA 3/31/2014 Performance Report
7. Attorney Report: Sugarman & Susskind, P.A. (Pedro Herrera)
8. Administrative Report: Resource Centers (Audrey Ross)
• Disbursements
• Benefit Approvals
• 2014 Meeting Dates (reminder of the year)
• Update Regions Bank Authorized Signors
• DROP & Share Statements Proposal
9. Old Business
• Review of Draft Summary Plan Description
10. New Business
11. Other Business
• Service Provider Contract Review – Auditor & Actuary
12. Next Scheduled Meeting: Monday July 7, 2014 @ 9AM.
13. Adjourn
2
PLEASE NOTE:
Should any interested party seek to appeal any decision made by the Board with respect to any matter considered at such meeting or hearing, he will need a
record of the proceedings, and for such purpose he may need to insure that a verbatim record of the proceedings is made, which record includes the testimony
and evidence upon which the appeal is to be based. In accordance with the Americans With Disabilities Act of 1990, persons needing a special accommodation
to participate in this meeting should contact The Resource Centers, LLC no later than four days prior to the meeting.
THE RESOURCE CENTERS , LLC
4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410
Phone (561) 624-3277 Fax (561) 624-3278 WWW.RESOURCECENTERS.COM
PALM BEACH GARDENS FIREFIGHTERS’
PENSION FUND
2014 MEETING DATES
Monday July 7, 2014 @ 9AM
Wednesday August 6, 2014 @ 1PM
Monday September 8, 2014 @ 9AM
Wednesday November 5, 2014 @ 1PM
City of Palm Beach Gardens
Firefighters' Pension Trust Fund
Investment Performance Review
1st Quarter 2014
Universe Sample Information is Preliminary
Private Real Estate Data is Preliminary
1st Quarter 2014 Market Environment
1
Ifthefirstquarterof2014isanyindication,theeuphoriaof2013appearsto
befadingintherearviewmirror.Sofarthisyearithasbeenamuchbumpier
ridewithmarketvolatilityabovewhatwasseenforalmostallof2013.The
quarterstartedwithamodestselloffbutreversedinMarchafternew
FederalReserveChairwomanJanetYellenofferedreassuringcomments
whichhelpedbolsterthemarket.Overallreturnsforbroadbasedindices
rangedfromslightlynegative(-0.4%fortheMSCIEmergingMarketsindex)
tomodestlypositive(+1.8%fortheS&P500and+1.8%fortheBarclays
U.S.AggregateBondIndex).
Domesticequitiesprovedresilientduringthequarter,overcomingprofit
takinginJanuaryandwarningsignscomingoutofemergingmarkets.Prices
inFebruaryandMarchweremixedbutoverallreturnsweregenerally
positive.Onetrendthatappearsincongruousgiventheeconomicuncertainty
isthestrengthfoundinlowerqualitycompanies.While“safehaven”areas
suchasUtilitiesandConsumerStaplesfaredbestduringthequarter,lower
qualitycompanies(noearnings,negativefreecashflow)outperformedtheir
higherqualitycounterparts.
Despitepostingclosetoflatreturnsduringatumultuousquarter,
internationalequitiesweretheworstperformerscomparedtodomestic
equitiesandfixedincome.Emergingequitiesendedinslightlynegative
territory,astheturmoilinEasternEurope(Russia/Ukraine)drovethose
marketsdownsignificantly.One-yearreturnsfordevelopedinternational
equitiesremainedwellinpositiveterritory,butemergingmarketequities
continuedtostrugglewithacombinedone-yearreturnof-1.1%.
TheU.S.bondmarket,representedbytheBarclaysU.S.AggregateBond
Index,reboundedfromitsweak2013performancebyrising1.8%inthefirst
quarterof2014.Onatrailing,one-yearbasisbondsreturnedaweak-0.1%.
Strongquarterlyresultswerebroad-basedasallthreemajorsectorsposted
positivereturns,ledbytheinvestmentgradecorporatesector’s+2.9%
return.U.S.governmentandmortgagebackedsecuritiesrose1.3%and
1.6%,respectively.U.S.TIPSrose1.9%intheperiod,butthetrailingone-
yearreturnremainedinnegativeterritoryat-6.5%.
Source: Investment Metrics
The Market Environment
Major Market Index Performance
As of March 31, 2014
0.0%
2.9%
1.6%
1.9%
1.3%
1.8%
1.1%
3.5%
2.0%
2.0%
1.8%
-0.4%
0.8%
0.6%
-1.0%0.0%1.0%2.0%3.0%4.0%
3-Month T-Bill
Barclays Corp IG
Barclays MBS
Barclays US TIPS
Barclays US Govt
Barclays US Agg
Russell 2000
Russell MidCap
Russell 1000
Russell 3000
S&P 500
MSCI Emerg Mkts
MSCI EAFE
MSCI ACWxUS
Quarter Performance
0.0%
1.5%
0.2%
-6.5%
-1.2%
-0.1%
24.9%
23.5%
22.4%
22.6%
21.9%
-1.1%
18.1%
12.8%
-10.0%-5.0%0.0%5.0%10.0%15.0%20.0%25.0%30.0%
3-Month T-Bill
Barclays Corp IG
Barclays MBS
Barclays US TIPS
Barclays US Govt
Barclays US Agg
Russell 2000
Russell MidCap
Russell 1000
Russell 3000
S&P 500
MSCI Emerg Mkts
MSCI EAFE
MSCI ACWxUS
1-Year Performance
2
Source: Investment Metrics
The Market Environment
Domestic Equity Style Index Performance
As of March 31, 2014
Inaperiodmarkedbyhighervolatilityandgeneraleconomicuncertainty,it
wasnosurprisethatlargercapstocksoutperformedtheirsmallercap
brethren.Midcapswerethebestoverallperformer(+3.5%)followedbylarge
caps(+1.8%)andsmallcaps(+1.1%).Valueoutpacedgrowthatall
capitalizationlevels.
Howmuchdidinclementweatherimpactequityreturnsduringthequarter?
Theimmediateimpactwasfeltviahigherutilitypricesandlowerconsumer
spending,whichnegativelyaffectedmanysectorshighlycorrelatedto
consumerspending.However,realwageincreases(nominalwagegrowth
aboveinflation)andpositiveeconomicleadingindicatorssuggestthat
continuedeconomicgrowthisastrongpossibility.Giventhatbackdrop,the
temporaryquarterlyslowdownappearstobeaweatherrelated
phenomenon.
AsofMarch2014,intrastockcorrelations(~0.33),whileabovethelong-term
average(~0.26since1926),reachedoneofthelowestpointssincetheearly
2000’s.Thisbodeswellforthefuturesuccessofactivelymanaged
strategies.
Currentvaluationsremainfair.TheMarch31,2014valuationontheS&P
500(1,872or15.2xforwardlookingearnings)waswithinahistorically
normaltradingrangefortheindex.Infact,thecurrentlevelisfarbelowthe
inflectionpointseenonMarch24,2000(26x)andisnotdissimilartothe
troughvaluationseenonOctober9,2002,whenthemarkettradedat14.1x
andsubsequentlyappreciatedfrom$777to$1,565(15.2x)overthenextfive
years.
Onereasonwhyvaluationsdidnotincreasecommensuratewithmarket
performancewastheimpactofcorporatesharerepurchases.Fewershares
outstandingresultinhigherearningspershare,whichisthedenominatorin
theprice-to-earningsmultiple.Stockbuybacksincreased15%in2013to
$445billion.
Onanabsolutebasis,smallcapstocksaremoreexpensiverelativetotheir
midandlargecapcounterparts(18.9xPEversus18.2xand15.2x,
respectively).However,relativetotheirlongtermaverages,smallcap
valuationsarein-linewithmidcap.Bothareslightlyexpensiverelativeto
largecaps,especiallyonthevalueside.
0.5%
1.1%
1.8%
2.0%
3.5%
5.2%
1.1%
2.0%
3.0%
1.1%
2.0%
2.9%
0.0%1.0%2.0%3.0%4.0%5.0%6.0%
2000 Growth
2000 Index
2000 Value
MidCap Growth
MidCap Index
MidCap Value
1000 Growth
1000 Index
1000 Value
3000 Growth
3000 Index
3000 Value
Quarter Performance -Russell Style Series
27.2%
24.9%
22.6%
24.2%
23.5%
23.0%
23.2%
22.4%
21.6%
23.5%
22.6%
21.7%
0.0%5.0%10.0%15.0%20.0%25.0%30.0%
2000 Growth
2000 Index
2000 Value
MidCap Growth
MidCap Index
MidCap Value
1000 Growth
1000 Index
1000 Value
3000 Growth
3000 Index
3000 Value
1-Year Performance -Russell Style Series
3
The Market Environment
GICS Sector Performance & (Sector Weight)
As of March 31, 2014
Source: Morningstar Direct
Sectorselectionhadabiggerimpactonactivemanageroutperformance
duringthequarterthanhasbeenseeninrecentperiods.The“defensive”
sectorsofUtilities,HealthCareandConsumerStapleswerelargelyleft
behindduringaverystrong2013marketrallywitnessedacrossall
capitalizationsandstyles.Asinvestoruncertaintyincreasedinthefirst
quarter,theshifttomorestableareasofthemarketwasevident,giventhe
reboundexperiencedinthesethreeareas.
REITshadapositiveimpactontheperformanceoftheFinancialssector
withinthelargecapsegmentofthemarketduringthequarter.While
investorslargelysoldoffREITexposurein2013duetofearsofrisingrates,
interestratestrendedlowerinearly2014,andREITsadvanced10.4%.
ConsumerDiscretionarywasanegativecontributortoperformanceinboth
thesmallandlargecapbenchmarksduringtheperiod.Again,mostofthe
impactcouldbeweatherrelated.Manyanalystshighlightedthesoftretail
andautosalesfiguresinthefirstquartertothecolderthannormalwinter
anditsimpactonconsumerspending.
Onanabsolutevaluationbasis,whenviewedacrossaten-yeartrailing
periodendingMarch31,2014,Financials,EnergyandTelecomwerethe
mostattractivelyvaluedareaswithintheS&P500.Eachsectortradedat
approximately13-14timesforwardearningspershare.Bycontrast,Health
Care,Materials,andbothConsumersectorswerethemostexpensiveat
approximately17times.Relativetotheten-yearaverage,onlytwosectors
currentlytradeatbelowaveragevaluations:TelecomandInformation
Technology.
HealthCarecontinuedtodominatebyplacingsevenstockswithinthetop
tensmallcapperformersduringthequarter,continuingatrendthatstartedin
late2013.Biotechcompaniesnowmakeupover9%oftheRussell2000
Growthbenchmark.Thetoptenlistinlargecapwasmoreuniformwith
HealthCare,InformationTechnology,andIndustrialsallplacingtwostocks
onthelist.
ThetwoConsumersectors,plusInformationTechnology,accountedfor60%
ofthetoptennegativecontributorswithinlargecapduringtheperiod.Within
smallcaps,underperformancewaslessconcentratedbysector,whichis
understandablegiventhatsmallcapstocksarelessimpactedby
macroeconomicvariablesversusidiosyncraticcompanyfundamentals.
10.1%
3.9%
22.4%
26.2%
27.5%
29.7%
22.4%
15.4%
11.3%
26.1%
9.7%
-0.4%
3.2%
2.3%
0.5%
5.9%
3.0%
1.5%
0.6%
-2.0%
-5.0%0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%
Utilities (3.0%)
Telecom Services (2.2%)
Materials (3.7%)
Info Technology (18.3%)
Industrials (11.4%)
Health Care (13.0%)
Financials (17.0%)
Energy (9.5%)
Consumer Staples (8.8%)
Consumer Disc (13.2%)
Russell 1000 Quarter 1-Year
13.5%
31.4%
14.9%
30.8%
26.8%
39.8%
17.2%
22.1%
33.0%
25.8%
5.4%
2.9%
0.8%
0.4%
0.5%
3.9%
1.4%
4.8%
1.8%
-3.2%
-10.0%0.0%10.0%20.0%30.0%40.0%50.0%
Utilities (3.1%)
Telecom Services (0.8%)
Materials (4.9%)
Info Technology (18.0%)
Industrials (14.4%)
Health Care (13.7%)
Financials (22.8%)
Energy (5.5%)
Consumer Staples (3.6%)
Consumer Disc (13.3%)
Russell 2000 Quarter 1-Year
4
The Market Environment
Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000
As of March 31, 2014
Source: Morningstar Direct
Top 10 Weighted Stocks Top 10 Weighted Stocks
Russell 1000 Weight 1-Qtr
Return
1-Year
Return Sector Russell 2000 Weight 1-Qtr
Return
1-Year
Return Sector
Apple Inc 2.61%-3.8%24.3%Information Technology American Realty Capital Properties 0.39%11.1%2.1%Financials
Exxon Mobil Corporation 2.25%-2.8%11.4%Energy AthenaHealth, Inc.0.35%19.1%65.1%Health Care
Microsoft Corporation 1.77%10.4%47.5%Information Technology Acuity Brands Inc 0.34%21.4%92.3%Industrials
Google Inc Class A 1.55%-0.6%40.3%Information Technology CoStar Group, Inc.0.32%1.2%70.6%Information Technology
Johnson & Johnson 1.43%8.0%24.0%Health Care SunEdison Inc 0.30%44.4%328.2%Information Technology
General Electric Co 1.39%-6.8%15.7%Industrials Northstar Realty Finance Corporation 0.30%21.9%84.1%Financials
Wells Fargo & Co 1.24%10.3%38.4%Financials Middleby Corporation 0.30%10.2%73.7%Industrials
Chevron Corp 1.19%-4.0%3.5%Energy Isis Pharmaceuticals 0.29%8.5%155.1%Health Care
JPMorgan Chase & Co 1.19%4.5%31.5%Financials Rite Aid Corporation 0.27%23.9%230.0%Consumer Staples
Berkshire Hathaway Inc Class B 1.16%5.4%19.9%Financials Kate Spade & Co 0.27%15.7%96.5%Consumer Discretionary
Top 10 Performing Stocks (by Quarter)Top 10 Performing Stocks (by Quarter)
Russell 1000 Weight 1-Qtr
Return
1-Year
Return Sector Russell 2000 Weight 1-Qtr
Return
1-Year
Return Sector
Myriad Genetics, Inc.0.01%63.0%34.6%Health Care Intercept Pharmaceuticals Inc 0.14%383.0%781.8%Health Care
Forest Laboratories, Inc.0.13%53.7%142.6%Health Care InterMune, Inc.0.18%127.2%269.8%Health Care
Freescale Semiconductor Ltd 0.01%52.1%63.9%Information Technology Endocyte, Inc.0.04%122.9%91.2%Health Care
Nabors Industries Ltd 0.04%45.3%53.4%Energy RCS Capital Corp Class A 0.00%113.1%NA Financials
American Airlines Group Inc 0.04%45.0%NA Industrials Pernix Therapeutics Holdings, Inc.0.01%112.3%7.9%Health Care
FireEye Inc 0.01%41.2%NA Information Technology Furiex Pharmaceuticals, Inc.0.03%107.1%132.1%Health Care
Keurig Green Mountain Inc 0.08%40.2%86.6%Consumer Staples Horizon Pharma Inc 0.05%98.4%457.9%Health Care
Tesla Motors, Inc.0.09%38.6%450.1%Consumer Discretionary GT Advanced Technologies Inc0.14%95.6%416.7%Information Technology
Royal Gold, Inc.0.02%35.9%-10.4%Materials Harvard Apparatus Reg Technology0.00%90.9%NA Health Care
Engility Holdings Inc 0.00%34.9%87.9%Industrials McClatchy Company Class A 0.02%88.8%121.4%Consumer Discretionary
Bottom 10 Performing Stocks (by Quarter)Bottom 10 Performing Stocks (by Quarter)
Russell 1000 Weight 1-Qtr
Return
1-Year
Return Sector Russell 2000 Weight 1-Qtr
Return
1-Year
Return Sector
NII Holdings Inc 0.00%-56.7%-72.5%Telecommunication Services Dolan Co 0.00%-97.7%-99.3%Industrials
Walter Energy Inc 0.00%-54.5%-73.2%Materials Global Geophysical Services, Inc.0.00%-92.6%-95.1%Energy
Alpha Natural Resources Inc 0.00%-40.5%-48.2%Energy GSE Holding Inc 0.00%-86.0%-96.5%Materials
Nu Skin Enterprises, Inc. Class A 0.03%-39.8%90.4%Consumer Staples Body Central Corp 0.00%-72.8%-88.6%Consumer Discretionary
UTi Worldwide, Inc.0.00%-39.7%-26.6%Industrials Ventrus Biosciences, Inc.0.00%-66.6%-57.4%Health Care
Weight Watchers International, Inc.0.00%-37.6%-50.8%Consumer Discretionary KiOR Inc 0.00%-65.9%-87.7%Energy
3D Systems Corporation 0.03%-36.3%83.5%Information Technology American Apparel, Inc.0.00%-59.3%-76.9%Consumer Discretionary
NeuStar, Inc.0.01%-34.8%-30.1%Information Technology Fairway Group Holdings Corp Class A 0.01%-57.9%NA Consumer Staples
Groupon Inc 0.02%-33.4%28.1%Consumer Discretionary NII Holdings Inc 0.01%-56.7%-72.5%Telecommunication Services
Best Buy Co Inc 0.04%-33.3%21.8%Consumer Discretionary Geron Corporation 0.02%-55.9%95.3%Health Care
5
Source: MSCI Global Index Monitor (Returns are Gross)
Whilethefinalreturnforthefirstquarterof2014showedlittlechange
fromyear-end2013,thepaththroughthequarterwasextremely
uncomfortable.Non-USequityindicesweredownover4%inJanuarybut
thenreversedup5%inFebruary.Marchreturnsendedfairlyflat,but,
onceagain,theintra-monthvolatilitywassignificant.
Developedinternationalequitiesweregenerallypositiveduringthe
quarter.However,Japan’sresultswerealargeexception.Inlocalterms,
Japanwasdownover7%,butyenappreciationbufferedU.S.investors
slightlyasthereturnwas-5.5%inUSDterms.Thestrongestinternational
developedmarketsforthefirstquarterwereNewZealand,Denmark,
Ireland,andItaly.
Emergingequitiescontinuedtounderperformmoderatelyasawhole,but
returnsweresegmentedbyregion.EquitiesinRussiawereonthe
extremeendofunderperformance,returning-14.5%.Russia’sinvasion
andannexationoftheCrimearegioninUkrainecausedinvestorsin
Russianequitiestoflee.Indonesiawasontheotherendofthe
performanceextremeasthecountry’sequitymarketendedthequarter
up21.2%.
CurrencymovesweregenerallyfavorabletoU.S.investorsinoverseas
assetswiththebiggestexceptionbeingRussia.
Overall,fornon-USequities,defensivesectors(HealthCareandUtilities)
turnedinthebestperformanceforthequarter.ConsumerDiscretionary
(-2.0%)wastheworstperformingsectorwithintheMSCIEAFEIndex,
whileTelecom(-5.8%)wastheworstperformingsectorwithintheMSCI
EMIndex.
Valueoutperformedgrowthindevelopedequities,whilegrowth
outperformedvalueamongemergingequities.Smallcapcompanies
outperformedlargecapswithinnon-USequities.
The Market Environment
International and Regional Market Index Performance (Country Count)
As of March 31, 2014
-1.7%
-0.3%
-3.5%
-0.5%
-4.6%
2.0%
-0.2%
0.3%
0.2%
0.4%
-0.2%
-6.5%
-0.4%
-2.4%
2.3%
0.8%
0.9%
0.6%
-8.0%-6.0%-4.0%-2.0%0.0%2.0%4.0%
EM Latin Amer (5)
EM Asia (8)
EM Europe & ME (8)
Emerging Mkt (21)
Pacific (5)
Europe & ME (16)
EAFE (21)
WORLD x US (22)
AC World x US (43)
Quarter Performance USD Local Currency
-4.9%
5.3%
-0.7%
3.8%
14.4%
16.4%
15.9%
15.9%
13.1%
-13.6%
3.4%
-7.7%
-1.1%
5.3%
25.2%
18.1%
17.0%
12.8%
-20.0%-10.0%0.0%10.0%20.0%30.0%
EM Latin Amer (5)
EM Asia (8)
EM Europe & ME (8)
Emerging Mkt (21)
Pacific (5)
Europe & ME (16)
EAFE (21)
WORLD x US (22)
AC World x US (43)
1-Year Performance USD Local Currency
6
The Market Environment
U.S. Dollar International Index Attribution & Country Detail
As of March 31, 2014
Source: MSCI Global Index Monitor (Returns are Gross in USD)
MSCI-EAFE MSCI-ACWIxUS Quarter 1-Year
Country Weight Weight Return Return
United Kingdom 21.1%15.2%-0.8%16.8%
Japan 19.7%14.2%-5.5%7.8%
France 10.4%7.5%3.0%30.6%
Germany 9.5%6.8%-0.3%31.7%
Switzerland 9.3%6.7%5.1%20.1%
Australia 7.9%5.7%6.0%1.3%
Spain 3.6%2.6%4.8%46.5%
Sweden 3.3%2.4%3.0%18.2%
Hong Kong 2.8%2.0%-3.4%3.7%
Netherlands 2.8%2.0%1.1%30.1%
Italy 2.6%1.9%14.6%54.1%
Singapore 1.5%1.1%-0.9%-2.1%
Denmark 1.4%1.0%16.5%40.6%
Belgium 1.2%0.9%2.4%21.1%
Finland 0.9%0.7%0.3%44.0%
Norway 0.8%0.6%2.2%12.3%
Israel 0.5%0.4%18.7%24.0%
Ireland 0.3%0.2%14.2%43.4%
Austria 0.3%0.2%-2.7%16.5%
Portugal 0.2%0.1%9.7%23.6%
New Zealand 0.1%0.1%16.7%18.0%
Total EAFE Countries 100.0%72.1%0.8%18.1%
Canada 7.3%1.8%7.2%
Total Developed Countries 79.4%0.9%17.0%
China 3.9%-5.9%2.5%
Korea 3.3%-2.0%5.5%
Taiwan 2.5%1.1%11.2%
Brazil 2.3%2.9%-12.7%
South Africa 1.6%4.9%8.4%
India 1.4%8.2%6.7%
Russia 1.1%-14.5%-10.5%
Mexico 1.1%-5.0%-10.2%
Malaysia 0.8%-0.4%8.2%
Indonesia 0.6%21.2%-17.8%
Thailand 0.5%7.5%-16.4%
Poland 0.4%3.4%21.2%
Turkey 0.3%4.8%-28.8%
Chile 0.3%-2.2%-26.5%
Colombia 0.2%5.1%-11.3%
Philippines 0.2%10.3%-9.1%
Greece 0.1%18.1%58.1%
Peru 0.1%4.4%-24.9%
Czech Republic 0.1%7.6%15.1%
Hungary 0.1%-8.7%-7.9%
Egypt 0.0%9.2%32.5%
Total Emerging Countries 20.6%-0.4%-1.1%
Total ACWIxUS Countries 100.0%0.6%12.8%
MSCI -EAFE Sector Weight Quarter Return 1-Year Return
Consumer Discretionary 11.8%-2.0%23.7%
Consumer Staples 11.0%0.7%6.3%
Energy 6.9%1.8%16.5%
Financials 25.6%-0.3%18.2%
Health Care 10.4%6.2%21.7%
Industrials 13.0%0.6%19.1%
Information Technology 4.5%-0.3%20.3%
Materials 8.1%0.7%9.0%
Telecommunication Services 5.0%-2.1%35.6%
Utilities 3.8%7.2%24.2%
Total 100.0%0.8%18.1%
MSCI -ACWIxUS Sector Weight Quarter Return 1-Year Return
Consumer Discretionary 10.8%-0.8%21.7%
Consumer Staples 9.9%0.4%4.0%
Energy 9.1%0.8%7.6%
Financials 26.6%-0.4%11.9%
Health Care 8.2%6.0%21.8%
Industrials 11.2%0.4%16.2%
Information Technology 6.8%1.8%18.6%
Materials 8.7%0.1%0.1%
Telecommunication Services 5.2%-2.9%22.0%
Utilities 3.5%6.2%17.1%
Total 100.0%0.6%12.8%
MSCI -Emerging Mkt Sector Weight Quarter Return 1-Year Return
Consumer Discretionary 9.3%3.9%12.7%
Consumer Staples 8.5%-1.3%-6.8%
Energy 10.8%-4.5%-9.1%
Financials 26.7%-0.4%-5.9%
Health Care 1.7%1.6%8.1%
Industrials 6.5%0.0%0.2%
Information Technology 16.7%4.0%17.6%
Materials 9.4%-3.5%-10.8%
Telecommunication Services 6.9%-5.8%-2.1%
Utilities 3.5%2.8%-1.9%
Total 100.0%-0.4%-1.1%
7
Source: Barclays Capital Live
The Market Environment
Domestic Bond Sector & Broad/Global Bond Market Performance (Duration)
As of March 31, 2014
2.2%
3.2%
0.0%
-0.1%
-6.5%
1.5%
0.2%
-1.3%
7.5%1.7%
1.0%
-0.1%
-0.6%
-8.0%-6.0%-4.0%-2.0%0.0%2.0%4.0%6.0%8.0%
Multiverse (6.19)
Global Agg x US (6.81)
Intermediate Agg (4.41)
Aggregate (5.65)
U.S. TIPS (6.77)
U.S. Corporate IG (7.030)
U.S. Mortgage (5.51)
U.S. Treasury (5.14)
U.S. High Yield (4.02)
Baa (7.33)
A (6.98)
AA (5.59)
AAA (5.17)
1-Year Performance
2.4%
2.8%
1.2%
1.8%
1.9%
2.9%
1.6%
1.3%
3.0%
3.6%
2.7%
2.1%
1.4%
0.0%1.0%2.0%3.0%4.0%
Multiverse (6.19)
Global Agg x US (6.81)
Intermediate Agg (4.41)
Aggregate (5.65)
U.S. TIPS (6.77)
U.S. Corporate IG (7.030)
U.S. Mortgage (5.51)
U.S. Treasury (5.14)
U.S. High Yield (4.02)
Baa (7.33)
A (6.98)
AA (5.59)
AAA (5.17)
Quarter Performance Domesticbondsbegan2014withastrongrally,rising1.5%amid
lacklustereconomicnewsandturmoilinseveralemergingeconomies
(Argentina,Turkey,Venezuela,andChina).Marketsentimentturned
bullish,andbondmarketstradedflat-to-higherinFebruary(0.5%)
despitetherecenteconomicandgeopoliticalunrestinUkraineand
Venezuela.InMarch,bondspostedmodestdeclines(-0.2%)afterthe
FOMCminutesrevealedsupportforcontinuedtaperingoftheFederal
Reserve’squantitativeeasingprogramaswellasamorehawkishtonein
regardstoanincreaseinthefedfundsratein2015.Thoughthequarter
endedwithadownmonth,thelossesdetractedonlyamodestamount
fromgainsearnedearlierinthequarter.
Eachofthethreekeyinvestmentgradesectorsroseduringthefirst
quarter.Corporatebondswerethestrongestperformingsegmentofthe
market,returning2.9%.Followingcreditwasthesecuritizedsector
(1.6%)andTreasury/Agencysecurities(1.3%).Onatrailingtwelve
monthbasis,returnsaremixedwiththecreditandmortgagesectors
landinginpositiveterritoryandgovernmentsecuritiesdown-1.3%.
Thetrendoflowqualitybondsoutperforminghigherqualitysecurities
continuedforyetanotherquarter.BondsratedBaarose3.6%,followed
byA-rated(2.7%),AA-rated(2.1%),andAAA-rated(1.4%).
Renewedbuyingoflonger-datedTreasuriesresultedinthebroad-based
BarclaysAggregateIndexoutperformingshortandintermediatebonds
duringthefirstquarter.
Highyieldbondscontinuedtheirstrongperformanceexceeding
investmentgradecreditfortheseventhconsecutivequarter(3.0%versus
2.9%).Thecontinueddemandforincomeresultedinsecuritiesrated
belowinvestmentgradeoutperforminginvestmentgradeby600basis
points(bps)overthepasttwelvemonths.
AfterunderperformingU.S.bondsinthefourthquarter,international
bonds,representedbytheBarclaysGlobalAggregateexU.S.Index,
surpassedtheirdomesticbondcounterparts(2.8%versus1.8%).The
strongshowingpushedinternationalbondsaheadoftheU.S.marketby
3.3%onatrailing,one-yearbasis.
8
Source: US Department of Treasury, FRED (Federal Reserve of St. Louis)
The Market Environment
Market Rate & Yield Curve Comparison
As of March 31, 2014
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
1 mo3 mo6 mo 1 yr2 yr3 yr5 yr7 yr 10 yr20 yr30 yr
Treasury Yield Curve
12/31/2012 9/30/2013 12/31/2013 3/31/2014
Afterending2013witha2.0%annualdecline,theU.S.bondmarket,
representedbytheBarclaysU.S.AggregateBondIndex,rose1.8%in
thefirstquarter.Weakeconomicnews,coupledwithgreatervisibilityand
guidancefromtheFederalReserve,resultedingreaterdemandfor
domesticbondsduringthequarter.Strengthinlonger-datedmaturities
andthecorporatebondsectorledmarketreturnshigher.
OtherthanmodestweaknessinMarch,yieldlevelsformaturitiesfive
yearsandunderweremostlyunchangedduringthefirstquarter.
However,ratesonlonger-datedbonds(10to30-yearmaturities)
declinedbetween31and41bpsduringtheperiod.Mostofthedecline
inratesoccurredinJanuaryinresponsetoweakereconomicnewsand
troublesinemergingmarketcountries.
Althoughtheyieldcurveflattenedinthefirstquarter,itstillprovides
investorsasizableyieldgainforextendingmaturities,especiallyin
intermediatematurities.Thespreadbetweenkeypointsontheyield
curveisshownbelow.
2-5YearU.S.Treasury 129bps
5-10YearU.S.Treasury 100bps
10-30YearU.S.Treasury 86bps
Therecentriseininterestrateshaspushedyieldstomoreattractive
levels,particularlyinlonger-datedmaturities,whichnowcarryayieldin
excessofthecurrentrateofinflation.Thehigheryieldshelpedpropel
bondstoanincreasinglyrarequarterofstrongperformance.Despitethe
solidquarter,theoveralloutlookfordomesticbondmarketsremains
challengingduetoratesremainingwellbelowhistoricalaverages.
-1.00
-0.50
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Apr-13May-13Jun-13Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14
1-Year Trailing Market Rates
Fed Funds Rate TED Spread 3-Month Libor
BAA OAS 10yr Treasury 10yr TIPS
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Schedule of Investable Assets
Total Fund Total Fund Policy Net Cash Flow
$0.0
$7,000,000.0
$14,000,000.0
$21,000,000.0
$28,000,000.0
$35,000,000.0
$42,000,000.0
$49,000,000.0
$56,000,000.0
$63,000,000.0
$70,000,000.0
$77,000,000.0
Market
Valu
e
7/07 1/08 7/08 1/09 7/09 1/10 7/10 1/11 7/11 1/12 7/12 1/13 7/13 3/14
$44,581,508.5
$65,255,647.4
Schedule of Investable Assets
Periods Ending
Beginning
Market Value
$
Net
Cash Flow
$
Gain/Loss
$
Ending
Market Value
$
%Return
Aug-2007 To Mar-2014 20,255,072 24,326,436 20,674,139 65,255,647 5.55
Schedule of Investable Assets
Total Fund
August 1, 2007 To March 31, 2014
11
March 31, 2014 : $65,255,647
US Cash
$214,087
0%
US Private Real Estate
$5,473,826
8%
Global Fixed Income
$3,378,594
5%
US Fixed Income
$12,823,856
20%
International Equity
$6,960,048
11%
US Equity
$36,405,236
56%
December 31, 2013 : $63,165,953
US Cash
$452,334
1%
US Private Real Estate
$4,328,451
7%
Global Fixed Income
$3,124,488
5%
US Fixed Income
$12,593,889
20%
International Equity
$6,750,188
11%
US Equity
$35,916,603
57%
Asset Allocation By Asset Class
Total Fund
As of March 31, 2014
12
March 31, 2014 : $65,255,647
VG TSMI
$13,265,428
20%
Dana (LC)
$13,654,484
21%
R & D
$214,087
0%
Intercontinental
$2,913,251
4%
American
$2,560,576
4%
Templeton GB
$3,378,594
5%
GHA
$6,409,537
10%
Agincourt
$6,414,319
10%
Manning & Napier
$3,522,030
5%
RBC
$3,438,019
5%
Dana (SC)
$3,707,640
6%
Fiduciary
$5,777,683
9%
December 31, 2013 : $63,165,953
VG TSMI
$12,649,423
20%
Dana (LC)
$13,693,259
22%
R & D
$452,334
1%
Intercontinental
$2,109,773
3%
American
$2,218,678
4%
Templeton GB
$3,124,488
5%
GHA
$6,298,091
10%
Agincourt
$6,295,798
10%
Manning & Napier
$3,448,627
5%
RBC
$3,301,561
5%
Dana (SC)
$3,913,089
6%
Fiduciary
$5,660,832
9%
Asset Allocation By Manager
Total Fund
As of March 31, 2014
13
Asset Allocation vs. Target Allocation
Allocation Differences
0.00%3.00%6.00%9.00%11.00%-3.00 %-6.00 %-9.00 %-11.00 %
Cash Equivalents
Real Estate
Global Fixed Income
Intermediate Fixed Income
Broad Fixed Income
International Equity
Domestic Equity
0.33%
-1.61 %
0.18%
-0.18 %
-0.17 %
0.67%
0.79%
Market Value
$Allocation (%)Target (%)
Domestic Equity 36,405,236 55.8 55.0
International Equity 6,960,048 10.7 10.0
Broad Fixed Income 6,414,319 9.8 10.0
Intermediate Fixed Income 6,409,537 9.8 10.0
Global Fixed Income 3,378,594 5.2 5.0
Real Estate 5,473,826 8.4 10.0
Cash Equivalents 214,087 0.3 0.0
Total Fund 65,255,647 100.0 100.0
Asset Allocation vs. Target Allocation
Total Fund
As of March 31, 2014
14
Asset Allocation Attributes
Domestic EquityInternational Equity Domestic Fixed
Income Global Fixed IncomeReal EstateCash Equivalent Total Fund
($)%($)%($)%($)%($)%($)%($)%
Total Domestic Equity 35,607,46997.81 --------797,7672.1936,405,23655.79
Vanguard Total Stock Index (VITSX)13,265,428100.00 ----------13,265,42820.33
Dana (Large Cap)13,555,34499.27 --------99,1400.7313,654,48420.92
Fiduciary Management, Inc.5,114,12788.52 --------663,55611.485,777,6838.85
Dana (Small Cap)3,672,57099.05 --------35,0710.953,707,6405.68
Total International Equity --6,960,048100.00 --------6,960,04810.67
RBC International Portfolio --3,438,019100.00 --------3,438,0195.27
Manning & Napier Overseas (EXOSX)--3,522,030100.00 --------3,522,0305.40
Total Domestic Fixed Income ----12,672,52498.82 ----151,3321.1812,823,85619.65
Agincourt Capital Management ----6,312,28298.41 ----102,0371.596,414,3199.83
Garcia, Hamilton & Associates ----6,360,24299.23 ----49,2950.776,409,5379.82
Total Global Fixed Income ------3,378,594100.00 ----3,378,5945.18
Templeton Global Bond Adv (FBNRX)------3,378,594100.00 ----3,378,5945.18
Total Real Estate --------5,473,826100.00 --5,473,8268.39
American Core Realty Fund --------2,560,576100.00 --2,560,5763.92
Intercontinental Real Estate --------2,913,251100.00 --2,913,2514.46
Receipt & Disbursement ----------214,087100.00214,0870.33
Total Fund Portfolio 35,607,46954.576,960,04810.6712,672,52419.423,378,5945.185,473,8268.391,163,1861.7865,255,647100.00
Asset Allocation
Total Fund
As of March 31, 2014
15
Financial Reconciliation Quarter to Date
Market Value
01/01/2014 ContributionsDistributions Management
Fees
Other
Expenses
Return On
Investment
Market Value
03/31/2014
Total Domestic Equity 35,916,603 338,127 -750,000 -38,127 -938,633 36,405,236
Vanguard Total Stock Index (VITSX)12,649,423 300,000 ---316,005 13,265,428
Dana (Large Cap)13,693,259 21,415 -500,000 -21,415 -461,225 13,654,484
Fiduciary Management, Inc.5,660,832 10,592 --10,592 -116,851 5,777,683
Dana (Small Cap)3,913,089 6,120 -250,000 -6,120 -44,552 3,707,640
Total International Equity 6,750,188 7,083 --7,083 -209,860 6,960,048
RBC International Portfolio 3,301,561 7,083 --7,083 -136,457 3,438,019
Manning & Napier Overseas (EXOSX)3,448,627 ----73,403 3,522,030
Total Domestic Fixed Income 12,593,889 11,488 --11,488 -229,967 12,823,856
Agincourt Capital Management 6,295,798 7,552 --7,552 -118,521 6,414,319
Garcia, Hamilton & Associates 6,298,091 3,936 --3,936 -111,446 6,409,537
Total Global Fixed Income 3,124,488 225,000 ---29,106 3,378,594
Templeton Global Bond Adv (FBNRX)3,124,488 225,000 ---29,106 3,378,594
Total Real Estate 4,328,451 1,012,500 ---132,875 5,473,826
American Core Realty Fund 2,218,678 262,500 ---79,398 2,560,576
Intercontinental Real Estate 2,109,773 750,000 ---53,478 2,913,251
Receipt & Disbursement 452,334 1,683,752 -1,867,346 --54,672 20 214,087
Total Fund Portfolio 63,165,953 3,277,949 -2,617,346 -56,697 -54,672 1,540,461 65,255,647
Financial Reconciliation
Total Fund
1 Quarter Ending March 31, 2014
16
Financial Reconciliation Fiscal Year to Date
Market Value
10/01/2013 ContributionsDistributions Management
Fees
Other
Expenses
Return On
Investment
Market Value
03/31/2014
Total Domestic Equity 32,329,467 970,272 -1,010,000 -70,272 -4,185,769 36,405,236
Vanguard Total Stock Index (VITSX)10,962,682 900,000 ---1,402,746 13,265,428
Dana (Large Cap)12,620,516 41,226 -760,000 -41,226 -1,793,968 13,654,484
Fiduciary Management, Inc.5,231,333 17,409 --17,409 -546,351 5,777,683
Dana (Small Cap)3,514,936 11,637 -250,000 -11,637 -442,704 3,707,640
Total International Equity 5,912,660 363,407 --13,407 -697,388 6,960,048
RBC International Portfolio 2,954,820 13,407 --13,407 -483,199 3,438,019
Manning & Napier Overseas (EXOSX)2,957,841 350,000 ---214,189 3,522,030
Total Domestic Fixed Income 12,121,597 415,382 --15,382 -302,259 12,823,856
Agincourt Capital Management 5,890,744 407,552 --7,552 -123,575 6,414,319
Garcia, Hamilton & Associates 6,230,854 7,830 --7,830 -178,684 6,409,537
Total Global Fixed Income 2,903,577 365,000 ---110,016 3,378,594
Templeton Global Bond Adv (FBNRX)2,903,577 365,000 ---110,016 3,378,594
Total Real Estate 4,109,274 1,125,000 -18,626 -34,739 -292,917 5,473,826
American Core Realty Fund 2,056,054 375,000 --6,118 -135,640 2,560,576
Intercontinental Real Estate 2,053,220 750,000 -18,626 -28,621 -157,278 2,913,251
Receipt & Disbursement 458,224 3,668,608 -3,840,468 --72,311 35 214,087
Total Fund Portfolio 57,834,800 6,907,669 -4,869,094 -133,800 -72,311 5,588,383 65,255,647
Financial Reconciliation
Total Fund
October 1, 2013 To March 31, 2014
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Comparative Performance Trailing Returns
QTR FYTD 1 YR 3 YR 5 YR Inception Inception
Date
Total Fund Portfolio (Gross)2.41 (15)9.44 (7)16.25 (3)10.09 (14)13.66 (55)5.87 (67)05/01/1998
Total Fund Policy 1.83 (32)8.21 (33)15.10 (8)10.91 (2)15.75 (5)5.59 (84)
All Public Plans-Total Fund Median 1.66 7.71 12.97 8.90 13.76 6.14
Total Fund Portfolio (Net)2.33 9.20 15.75 9.55 13.13 5.29 05/01/1998
Total Fund Policy 1.83 8.21 15.10 10.91 15.75 5.59
Total Equity 2.75 12.61 23.17 11.76 18.76 9.03 07/31/2008
Total Equity Policy 1.77 11.23 21.54 13.47 21.08 8.56
Total Domestic Equity 2.68 (28)12.86 (24)23.49 (38)12.25 (60)19.19 (68)8.83 (28)07/01/2002
Total Domestic Equity Policy 1.97 (45)12.28 (36)22.61 (47)14.61 (29)21.93 (30)8.00 (50)
IM U.S. All Cap Core Equity (SA+CF+MF) Median 1.81 11.44 22.38 13.09 20.60 7.97
Total International Equity 3.11 (12)11.28 (8)21.51 (17)9.35 (17)17.57 (31)7.51 (23)01/01/2006
Total International Equity Policy 0.61 (42)5.45 (50)15.32 (41)6.88 (36)16.01 (47)N/A
MSCI EAFE Index 0.77 (39)6.56 (37)18.06 (27)7.72 (28)16.56 (41)4.99 (60)
IM International Equity (SA+CF+MF) Median 0.29 5.44 13.26 5.52 15.84 5.53
Total Fixed Income 1.65 2.67 1.27 4.93 6.37 5.24 07/01/2002
Total Fixed Income Policy 1.75 1.42 0.47 2.80 4.10 4.61
Total Domestic Fixed Income 1.83 (75)2.43 (31)1.17 (8)N/A N/A 3.80 (22)09/01/2011
IM U.S. Broad Market Core Fixed Income (SA+CF) Median1.98 2.03 0.28 4.29 5.98 3.09
IM U.S. Intermediate Duration (SA+CF) Median 1.19 1.38 0.41 3.50 4.98 2.44
Total Global Fixed Income 0.86 (94)3.62 (28)1.76 (33)N/A N/A 5.43 (11)09/01/2011
Citigroup World Government Bond 2.66 (41)1.55 (90)1.37 (39)1.91 (82)3.84 (95)-0.73 (94)
IM Global Fixed Income (MF) Median 2.43 2.78 0.82 3.36 6.34 2.67
Total Real Estate 2.49 (48)6.39 (29)14.39 (38)13.74 (57)6.48 (64)4.60 (50)07/01/2006
Total Real Estate Policy 2.45 (51)5.65 (59)12.34 (80)12.08 (81)8.11 (31)6.29 (6)
NCREIF Property Index 0.00 (100)2.53 (100)8.21 (100)10.69 (100)7.31 (57)5.78 (9)
IM U.S. Open End Private Real Estate (SA+CF) Median2.45 5.75 13.72 13.83 7.73 4.51
Comparative Performance
Total Fund
As of March 31, 2014
Returns for periods greater than 1 yr. are annualized. Returns are expressed as percentage.
Dana Large Cap Portfolio: Managed as broad equity from 7/1/2002-1/1/2008; large cap value from 1/1/2008-1/1/2011; and core equity from 1/1/2011 to present.
Dana Custom Index: 100% Russell 3000 Index prior to 1/1/2008; 100% Russell 1000 Value Index 1/1/2008-12/31/2010; 100% S&P 500 Index 1/1/2011-present.
19
Comparative Performance
Total Fund
As of March 31, 2014
QTR FYTD 1 YR 3 YR 5 YR Inception Inception
Date
Total Domestic Equity
Vanguard Total Stock Index (VITSX)2.05 (41)12.33 (33)22.71 (45)N/A N/A 22.71 (45)04/01/2013
Vanguard Total Stock Market Index 2.04 (42)12.33 (33)22.70 (45)14.65 (26)22.08 (25)22.70 (45)
IM U.S. Multi-Cap Core Equity (MF) Median 1.77 11.41 22.31 12.93 20.44 22.31
Dana (Large Cap)3.53 (13)14.48 (18)24.11 (38)14.89 (51)20.69 (62)8.62 (54)07/01/2002
Dana Custom Index 1.81 (65)12.51 (57)21.86 (67)14.66 (57)21.54 (42)7.58 (88)
IM U.S. Large Cap Core Equity (SA+CF) Median 2.11 12.74 22.82 14.90 21.17 8.69
Fiduciary Management, Inc.2.06 (44)10.44 (75)N/A N/A N/A 12.05 (74)08/01/2013
Russell 3000 Index 1.97 (47)12.28 (52)22.61 (64)14.61 (64)21.93 (55)13.20 (60)
IM U.S. All Cap Core Equity (SA+CF) Median 1.87 12.32 23.73 15.19 22.09 14.27
Dana (Small Cap)1.29 (49)12.77 (23)28.53 (41)18.53 (8)27.19 (34)9.61 (79)05/01/2005
Russell 2000 Index 1.12 (53)9.94 (75)24.90 (74)13.18 (81)24.31 (74)9.69 (79)
IM U.S. Small Cap Core Equity (SA+CF) Median 1.25 11.29 26.99 15.33 26.20 10.95
Total International Equity
RBC International Portfolio 4.13 (6)16.35 (1)27.52 (8)13.58 (6)20.64 (11)9.33 (7)01/01/2006
MSCI AC World ex USA 0.61 (64)5.45 (83)12.80 (89)4.63 (83)16.04 (56)5.32 (63)
IM International Large Cap Value Equity (SA+CF) Median1.13 7.41 20.24 7.51 16.62 5.75
Manning & Napier Overseas (EXOSX)2.13 (10)6.76 (40)15.95 (48)5.21 (67)N/A 11.27 (41)06/01/2009
MSCI AC World ex USA 0.61 (40)5.45 (66)12.80 (76)4.63 (73)16.04 (35)10.59 (54)
IM International Multi-Cap Core Equity (MF) Median 0.39 6.11 15.75 6.43 15.39 10.84
Returns for periods greater than 1 yr. are annualized. Returns are expressed as percentage.
Dana Large Cap Portfolio: Managed as broad equity from 7/1/2002-1/1/2008; large cap value from 1/1/2008-1/1/2011; and core equity from 1/1/2011 to present.
Dana Custom Index: 100% Russell 3000 Index prior to 1/1/2008; 100% Russell 1000 Value Index 1/1/2008-12/31/2010; 100% S&P 500 Index 1/1/2011-present.
20
Comparative Performance
Total Fund
As of March 31, 2014
QTR FYTD 1 YR 3 YR 5 YR Inception Inception
Date
Total Domestic Fixed Income
Agincourt Capital Management 1.88 (67)1.99 (53)0.29 (50)4.30 (50)5.59 (67)6.57 (38)10/01/2008
Barclays Aggregate Index 1.84 (74)1.70 (82)-0.10 (75)3.75 (86)4.80 (85)5.23 (91)
IM U.S. Broad Market Core Fixed Income (SA+CF) Median1.98 2.03 0.28 4.29 5.98 6.25
Garcia, Hamilton & Associates 1.77 (13)2.87 (8)2.05 (5)4.92 (6)6.72 (14)6.35 (8)07/01/2008
Barclays Intermediate Aggregate Index 1.20 (48)1.06 (79)0.01 (76)3.04 (80)4.24 (79)4.46 (82)
IM U.S. Intermediate Duration (SA+CF) Median 1.19 1.38 0.41 3.50 4.98 4.99
Total Global Fixed Income
Templeton Global Bond Adv (FBNRX)0.86 (94)3.62 (28)1.83 (31)N/A N/A 8.06 (6)10/01/2011
Citigroup World Government Bond 2.66 (41)1.55 (90)1.37 (39)1.91 (82)3.84 (95)0.03 (95)
IM Global Fixed Income (MF) Median 2.43 2.78 0.82 3.36 6.34 3.55
Total Real Estate
American Core Realty Fund 3.20 (25)5.88 (41)13.15 (62)12.42 (78)5.76 (71)3.60 (73)07/01/2006
NCREIF Fund Index-Open End Diversified Core (EW)2.45 (51)5.65 (59)13.21 (62)12.85 (64)6.59 (63)3.88 (56)
IM U.S. Open End Private Real Estate (SA+CF) Median2.45 5.75 13.72 13.83 7.73 4.51
Intercontinental Real Estate 1.87 (89)7.06 (20)15.81 (22)15.19 (27)N/A 15.59 (27)10/01/2010
NCREIF Fund Index-Open End Diversified Core (EW)2.45 (51)5.65 (59)13.21 (62)12.85 (64)6.59 (63)13.70 (71)
IM U.S. Open End Private Real Estate (SA+CF) Median2.45 5.75 13.72 13.83 7.73 14.30
Returns for periods greater than 1 yr. are annualized. Returns are expressed as percentage.
Dana Large Cap Portfolio: Managed as broad equity from 7/1/2002-1/1/2008; large cap value from 1/1/2008-1/1/2011; and core equity from 1/1/2011 to present.
Dana Custom Index: 100% Russell 3000 Index prior to 1/1/2008; 100% Russell 1000 Value Index 1/1/2008-12/31/2010; 100% S&P 500 Index 1/1/2011-present.
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Comparative Performance Fiscal Year Returns
FY2013FY2012FY2011FY2010FY2009FY2008FY2007FY2006 FY2005
Total Fund Portfolio (Gross)15.11 (12)18.93 (30)0.08 (56)8.61 (83)0.00 (67)-11.96 (28)11.67 (89)8.65 (50)14.35 (26)
Total Fund Policy 14.70 (16)19.99 (14)2.54 (13)9.32 (69)-1.86 (82)-14.02 (55)13.39 (67)9.16 (41)9.23 (84)
All Public Plans-Total Fund Median 12.5517.93 0.29 9.98 1.31-13.6714.39 8.6412.34
Total Fund Portfolio (Net)14.5618.28 -0.37 8.14 -0.46-12.3010.96 7.9213.82
Total Fund Policy 14.7019.99 2.54 9.32 -1.86-14.0213.39 9.16 9.23
Total Equity 22.0625.54 -4.3810.56 -1.59 N/A N/A N/A N/A
Total Equity Policy 21.8227.76 -0.89 9.91 -4.90 N/A N/A N/A N/A
Total Domestic Equity 21.70 (61)26.53 (43)-2.59 (56)11.15 (30)-3.60 (43)-16.51 (10)14.18 (74)10.21 (33)21.50 (14)
Total Domestic Equity Policy 21.60 (62)30.20 (18)0.55 (26)10.96 (34)-6.42 (68)-21.52 (34)16.52 (54)10.22 (33)12.69 (74)
IM U.S. All Cap Core Equity (SA+CF+MF) Median 23.3525.47 -2.04 9.78 -4.67-22.8816.78 9.1215.06
Total International Equity 24.24 (23)20.29 (18)-10.51 (42)8.14 (54)11.28 (30)-30.51 (46)24.22 (72)N/A N/A
Total International Equity Policy 22.69 (31)14.33 (67)-8.94 (31)3.71 (76)3.80 (56)-30.13 (42)N/A N/A N/A
MSCI EAFE Index 24.29 (23)14.33 (67)-8.94 (31)3.71 (76)3.80 (56)-30.13 (42)25.38 (64)19.65 (46)26.32 (56)
IM International Equity (SA+CF+MF) Median 18.2416.38-11.44 8.91 5.08-31.0928.1619.1827.00
Total Fixed Income 0.12 8.82 3.39 9.2015.33 0.03 5.24 3.64 1.77
Total Fixed Income Policy -1.56 4.11 4.22 7.52 9.69 4.16 5.43 3.54 1.48
Total Domestic Fixed Income -0.24 (11)8.27 (14)N/A N/A N/A N/A N/A N/A N/A
Total Domestic Fixed Income Policy -0.80 (29)4.31 (98)4.22 (91)7.52 (96)9.69 (89)4.16 (21)5.43 (26)3.54 (87)1.48 (100)
IM U.S. Broad Market Core Fixed Income (SA+CF) Median-1.28 6.62 5.26 9.2612.34 2.57 5.14 3.85 3.11
Total Global Fixed Income 3.33 (6)13.25 (7)N/A N/A N/A N/A N/A N/A N/A
Citigroup World Government Bond -4.60 (86)3.29 (97)4.61 (8)4.99 (94)13.78 (52)5.90 (6)8.69 (30)2.23 (64)3.02 (74)
IM Global Fixed Income (MF) Median -1.45 7.39 1.53 7.8013.96-1.53 7.21 2.54 5.11
Total Real Estate 15.18 (34)12.45 (55)15.92 (78)2.44 (79)-32.96 (41)4.98 (36)21.07 (13)N/A N/A
Total Real Estate Policy 11.84 (80)11.00 (77)16.10 (78)5.84 (53)-22.09 (5)5.27 (29)17.31 (71)N/A N/A
NCREIF Property Index 11.00 (82)11.00 (77)16.10 (78)5.84 (53)-22.09 (5)5.27 (29)17.31 (71)17.62 (55)19.19 (68)
IM U.S. Open End Private Real Estate (SA+CF) Median12.9612.8916.62 6.39-34.36 3.6018.7318.0819.98
Comparative Performance
Total Fund
As of March 31, 2014
Returns for periods greater than 1 yr. are annualized.
Dana Large Cap Portfolio: Managed as broad equity from 7/1/2002-1/1/2008; large cap value from 1/1/2008-1/1/2011; and core equity from 1/1/2011 to present.
Dana Custom Index: 100% Russell 3000 Index prior to 1/1/2008; 100% Russell 1000 Value Index 1/1/2008-12/31/2010; 100% S&P 500 Index 1/1/2011-present.
23
Comparative Performance
Total Fund
As of March 31, 2014
FY2013FY2012FY2011FY2010FY2009FY2008FY2007FY2006 FY2005
Total Domestic Equity
Vanguard Total Stock Index (VITSX)N/A N/A N/A N/A N/A N/A N/A N/A N/A
Vanguard Total Stock Market Index 21.50 (63)30.28 (16)0.71 (20)11.16 (28)-6.03 (64)-21.19 (29)16.98 (47)10.38 (29)14.70 (53)
IM U.S. Multi-Cap Core Equity (MF) Median 23.1925.43 -2.33 9.62 -4.54-22.9816.72 9.1114.89
Dana (Large Cap)19.62 (62)31.58 (21)-0.89 (72)10.10 (42)-13.66 (97)-12.23 (6)15.43 (71)10.93 (45)18.87 (23)
Dana Custom Index 19.34 (63)30.20 (45)0.95 (53)8.90 (59)-10.62 (92)-21.56 (62)16.52 (58)10.22 (57)14.57 (56)
IM U.S. Large Cap Core Equity (SA+CF) Median 20.6229.78 1.13 9.46 -5.79-20.4816.9710.7615.16
Fiduciary Management, Inc.N/A N/A N/A N/A N/A N/A N/A N/A N/A
Russell 3000 Index 21.60 (78)30.20 (30)0.55 (62)10.96 (53)-6.42 (60)-21.52 (63)16.52 (63)10.22 (37)14.57 (72)
IM U.S. All Cap Core Equity (SA+CF) Median 23.8627.38 0.9811.05 -6.06-21.1117.67 9.1517.13
Dana (Small Cap)31.48 (57)39.20 (8)3.82 (15)15.86 (35)-13.06 (84)-21.93 (80)8.02 (89)5.23 (80)N/A
Russell 2000 Index 30.06 (71)31.91 (54)-3.53 (77)13.35 (72)-9.55 (65)-14.48 (25)12.34 (70)9.92 (32)17.95 (82)
IM U.S. Small Cap Core Equity (SA+CF) Median 32.3032.35 -0.2314.61 -7.80-17.6514.74 8.1621.91
Total International Equity
RBC International Portfolio 27.45 (16)24.65 (3)-8.87 (57)12.31 (10)7.72 (39)-29.87 (70)24.22 (48)N/A N/A
MSCI AC World ex USA 16.98 (82)15.04 (50)-10.42 (70)8.00 (36)6.43 (47)-29.97 (70)31.06 (13)19.36 (72)29.48 (28)
IM International Large Cap Value Equity (SA+CF) Median22.6315.01 -8.41 4.95 6.01-27.3823.9120.9226.81
Manning & Napier Overseas (EXOSX)20.93 (49)16.04 (39)-12.51 (72)2.52 (82)N/A N/A N/A N/A N/A
MSCI AC World ex USA 16.98 (80)15.04 (56)-10.42 (41)8.00 (23)6.43 (26)-29.97 (32)31.06 (6)19.36 (31)29.48 (8)
IM International Multi-Cap Core Equity (MF) Median 20.6415.37-11.09 5.13 2.20-31.3624.9718.2525.34
Returns for periods greater than 1 yr. are annualized.
Dana Large Cap Portfolio: Managed as broad equity from 7/1/2002-1/1/2008; large cap value from 1/1/2008-1/1/2011; and core equity from 1/1/2011 to present.
Dana Custom Index: 100% Russell 3000 Index prior to 1/1/2008; 100% Russell 1000 Value Index 1/1/2008-12/31/2010; 100% S&P 500 Index 1/1/2011-present.
24
Comparative Performance
Total Fund
As of March 31, 2014
FY2013FY2012FY2011FY2010FY2009FY2008FY2007FY2006 FY2005
Total Domestic Fixed Income
Agincourt Capital Management -1.40 (60)6.96 (44)4.92 (69)9.55 (38)14.76 (19)N/A N/A N/A N/A
Barclays Aggregate Index -1.68 (81)5.16 (91)5.26 (49)8.16 (87)10.56 (80)3.65 (32)5.14 (51)3.67 (76)2.80 (81)
IM U.S. Broad Market Core Fixed Income (SA+CF) Median-1.28 6.62 5.26 9.2612.34 2.57 5.14 3.85 3.11
Garcia, Hamilton & Associates 0.88 (8)9.51 (4)2.32 (90)8.87 (28)15.91 (7)N/A N/A N/A N/A
Barclays Intermediate Aggregate Index -0.71 (77)4.31 (85)4.22 (21)7.52 (77)9.69 (82)4.16 (35)5.33 (69)3.84 (61)2.23 (42)
IM U.S. Intermediate Duration (SA+CF) Median -0.24 5.57 3.58 8.2711.46 3.26 5.49 3.92 2.09
Total Global Fixed Income
Templeton Global Bond Adv (FBNRX)3.44 (5)13.25 (7)N/A N/A N/A N/A N/A N/A N/A
Citigroup World Government Bond -4.60 (86)3.29 (97)4.61 (8)4.99 (94)13.78 (52)5.90 (6)8.69 (30)2.23 (64)3.02 (74)
IM Global Fixed Income (MF) Median -1.45 7.39 1.53 7.8013.96-1.53 7.21 2.54 5.11
Total Real Estate
American Core Realty Fund 12.27 (70)11.57 (66)16.11 (74)2.72 (75)-32.96 (41)4.98 (36)16.31 (81)N/A N/A
NCREIF Fund Index-Open End Diversified Core (EW)12.47 (67)11.77 (65)18.03 (41)6.14 (52)-36.09 (54)3.73 (49)17.84 (61)17.49 (55)18.91 (71)
IM U.S. Open End Private Real Estate (SA+CF) Median12.9612.8916.62 6.39-34.36 3.6018.7318.0819.98
Intercontinental Real Estate 18.19 (8)13.33 (42)15.80 (79)N/A N/A N/A N/A N/A N/A
NCREIF Fund Index-Open End Diversified Core (EW)12.47 (67)11.77 (65)18.03 (41)6.14 (52)-36.09 (54)3.73 (49)17.84 (61)17.49 (55)18.91 (71)
IM U.S. Open End Private Real Estate (SA+CF) Median12.9612.8916.62 6.39-34.36 3.6018.7318.0819.98
Returns for periods greater than 1 yr. are annualized.
Dana Large Cap Portfolio: Managed as broad equity from 7/1/2002-1/1/2008; large cap value from 1/1/2008-1/1/2011; and core equity from 1/1/2011 to present.
Dana Custom Index: 100% Russell 3000 Index prior to 1/1/2008; 100% Russell 1000 Value Index 1/1/2008-12/31/2010; 100% S&P 500 Index 1/1/2011-present.
25
Plan Sponsor Peer Group Analysis - All Public Plans-Total Fund
Comparative Performance
-30.00
-20.00
-10.00
0.00
10.00
20.00
30.00
R
e
t
u
r
n
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Oct-2010
To
Sep-2011
Oct-2009
To
Sep-2010
Oct-2008
To
Sep-2009
Oct-2007
To
Sep-2008
Total Fund15.11 (12)18.93 (30)0.08 (56)8.61 (83)0.00 (67)-11.96 (28)Å
Total Policy14.70 (16)19.99 (14)2.54 (13)9.32 (69)-1.86 (82)-14.02 (55)Å
Median12.5517.930.299.981.31-13.67
-4.00
-1.00
2.00
5.00
8.00
11.00
14.00
17.00
20.00
R
e
t
u
r
n
QTRFYTD1 YR2 YR3 YR4 YR5 YR
Total Fund2.41 (15)9.44 (7)16.25 (3)13.53 (3)10.09 (14)11.21 (7)13.66 (55)Å
Total Policy1.83 (32)8.21 (33)15.10 (8)12.99 (10)10.91 (2)11.66 (2)15.75 (5)Å
Median1.667.7112.9711.308.909.9913.76
1 Qtr
Ending
Dec-2013
1 Qtr
Ending
Sep-2013
1 Qtr
Ending
Jun-2013
1 Qtr
Ending
Mar-2013
1 Qtr
Ending
Dec-2012
1 Qtr
Ending
Sep-2012
Total Fund 6.86 (8)5.02 (45)1.15 (6)6.83 (8)1.44 (62)5.02 (34)
Total Policy 6.27 (26)5.12 (42)1.19 (6)6.76 (10)1.00 (77)4.78 (49)
All Public Plans-Total Fund Median 5.63 4.91 0.10 5.47 1.72 4.77
As of March 31, 2014
Performance Review
Total Fund
NONE
26
Peer Group Scattergram - 3 Years
3 Yr Rolling Under/Over Performance - 5 Years
Peer Group Scattergram - 5 Years
3 Yr Rolling Percentile Ranking - 5 Years
Historical Statistics - 3 Years
Historical Statistics - 5 Years
0.0
25.0
50.0
75.0
100.0R
e
t
u
r
n
P
e
r
c
e
n
t
i
l
e
R
a
n
k
6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
Total Fund20 5 (25%)1 (5%)10 (50%)4 (20%)Å
Total Policy20 10 (50%)0 (0%)3 (15%)7 (35%)Å
Over Performance Under Performance
Earliest Date Latest Date
-15.0
0.0
15.0
30.0
To
t
a
l
F
u
n
d
(
%
)
-15.0 -12.5 -10.0 -7.5 -5.0 -2.5 0.0 2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0 22.5 25.0 27.530.0
Total Policy (%)
Over
Performance
Under
Performance
7.50
9.00
10.50
12.00
R
e
t
u
r
n
(
%
)
9.20 9.40 9.60 9.80 10.00 10.20 10.40 10.6010.80
Risk (Standard Deviation %)
Return Standard
Deviation
Total Fund 10.09 10.57Å
Total Policy 10.91 9.52Å
Median 8.90 9.74¾
12.00
13.50
15.00
16.50
R
e
t
u
r
n
(
%
)
9.8 9.9 10.0 10.1 10.2 10.3 10.4 10.510.6
Risk (Standard Deviation %)
Return Standard
Deviation
Total Fund 13.66 9.92Å
Total Policy 15.75 10.50Å
Median 13.76 10.11¾
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
Total Fund 1.63 101.45 122.86 -1.74 -0.39 0.97 1.10 6.65
Total Policy 0.00 100.00 100.00 0.00 N/A 1.14 1.00 5.53
90 Day U.S. Treasury Bill 9.52 0.36 -0.24 0.07 -1.14 N/A 0.00 0.00
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
Total Fund 3.14 90.76 105.14 -0.41 -0.62 1.35 0.90 5.59
Total Policy 0.00 100.00 100.00 0.00 N/A 1.46 1.00 5.18
90 Day U.S. Treasury Bill 10.50 0.45 -0.38 0.09 -1.46 N/A 0.00 0.00
As of March 31, 2014
Performance Review
Total Fund
NONE
27
Pa
g
e
I
n
t
e
n
t
i
o
n
a
l
l
y
L
e
f
t
B
l
a
n
k
28
Peer Group Analysis - IM U.S. Multi-Cap Core Equity (MF)
Comparative Performance
-55.00
-40.00
-25.00
-10.00
5.00
20.00
35.00
50.00
R
e
t
u
r
n
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Oct-2010
To
Sep-2011
Oct-2009
To
Sep-2010
Oct-2008
To
Sep-2009
Oct-2007
To
Sep-2008
VG TSMIN/AN/AN/AN/AN/AN/AÅ
VG TSM Index21.50 (63)30.28 (16)0.71 (20)11.16 (28)-6.03 (64)-21.19 (29)Å
Median23.1925.43-2.339.62-4.54 -22.98
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
R
e
t
u
r
n
QTRFYTD1 YR2 YR3 YR4 YR5 YR
VG TSMI2.05 (41)12.33 (33)22.71 (45)N/AN/AN/AN/AÅ
VG TSM Index2.04 (42)12.33 (33)22.70 (45)18.50 (40)14.65 (26)15.39 (23)22.08 (25)Å
Median1.7711.4122.3117.6712.9313.7320.44
1 Qtr
Ending
Dec-2013
1 Qtr
Ending
Sep-2013
1 Qtr
Ending
Jun-2013
1 Qtr
Ending
Mar-2013
1 Qtr
Ending
Dec-2012
1 Qtr
Ending
Sep-2012
VG TSMI 10.08 (31)6.30 (64)2.77 (44)N/A N/A N/A
VG TSM Index 10.09 (30)6.29 (65)2.76 (44)11.02 (50)0.19 (78)6.24 (33)
IM U.S. Multi-Cap Core Equity (MF) Median 9.45 6.85 2.57 11.01 1.51 5.68
Performance Review (Fiscal Years)
As of March 31, 2014
VG TSMI
NONE
29
Peer Group Analysis - IM U.S. Large Cap Core Equity (SA+CF)
Comparative Performance
-40.00
-30.00
-20.00
-10.00
0.00
10.00
20.00
30.00
40.00
50.00
R
e
t
u
r
n
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Oct-2010
To
Sep-2011
Oct-2009
To
Sep-2010
Oct-2008
To
Sep-2009
Oct-2007
To
Sep-2008
Dana LC19.62 (62)31.58 (21)-0.89 (72)10.10 (42)-13.66 (97)-12.23 (6)Å
Dana Index19.34 (63)30.20 (45)0.95 (53)8.90 (59)-10.62 (92)-21.56 (62)Å
Median20.6229.781.139.46-5.79-20.48
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
R
e
t
u
r
n
QTRFYTD1 YR2 YR3 YR4 YR5 YR
Dana LC3.53 (13)14.48 (18)24.11 (38)18.72 (42)14.89 (51)15.38 (47)20.69 (62)Å
Dana Index1.81 (65)12.51 (57)21.86 (67)17.84 (59)14.66 (57)14.64 (64)21.54 (42)Å
Median2.1112.7422.8218.3514.9015.2621.17
1 Qtr
Ending
Dec-2013
1 Qtr
Ending
Sep-2013
1 Qtr
Ending
Jun-2013
1 Qtr
Ending
Mar-2013
1 Qtr
Ending
Dec-2012
1 Qtr
Ending
Sep-2012
Dana LC 10.58 (46)6.01 (50)2.26 (66)11.16 (35)-0.74 (75)5.18 (83)
Dana Index 10.51 (49)5.24 (72)2.91 (45)10.61 (54)-0.38 (61)6.35 (53)
IM U.S. Large Cap Core Equity (SA+CF) Median 10.49 5.99 2.75 10.67 0.00 6.41
Performance Review (Fiscal Years)
As of March 31, 2014
Dana LC
NONE
30
Peer Group Scattergram - 3 Years
3 Yr Rolling Under/Over Performance - 5 Years
Peer Group Scattergram - 5 Years
3 Yr Rolling Percentile Ranking - 5 Years
Historical Statistics - 3 Years
Historical Statistics - 5 Years
0.0
25.0
50.0
75.0
100.0R
e
t
u
r
n
P
e
r
c
e
n
t
i
l
e
R
a
n
k
6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
Dana LC20 0 (0%)5 (25%)10 (50%)5 (25%)Å
Dana Index20 0 (0%)3 (15%)6 (30%)11 (55%)Å
Over Performance Under Performance
Earliest Date Latest Date
-25.0
0.0
25.0
50.0
D
a
n
a
L
C
(
%
)
-25.0 -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.050.0
Dana Index (%)
Over
Performance
Under
Performance
14.60
14.80
15.00
R
e
t
u
r
n
(
%
)
14.10 14.40 14.70 15.00 15.30 15.60 15.90 16.2016.50
Risk (Standard Deviation %)
Return Standard
Deviation
Dana LC 14.89 15.95Å
Dana Index 14.66 14.52Å
Median 14.90 15.25¾
20.00
21.00
22.00
R
e
t
u
r
n
(
%
)
15.50 15.60 15.70 15.80 15.90 16.00 16.10 16.2016.30
Risk (Standard Deviation %)
Return Standard
Deviation
Dana LC 20.69 15.66Å
Dana Index 21.54 16.02Å
Median 21.17 16.17¾
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
Dana LC 2.07 102.49 103.14 -0.27 0.14 1.14 1.04 7.52
Dana Index 0.00 100.00 100.00 0.00 N/A 1.17 1.00 7.05
90 Day U.S. Treasury Bill 12.30 0.15 -0.20 0.07 -1.17 N/A 0.00 0.01
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
Dana LC 3.23 97.01 98.39 0.47 -0.24 1.44 0.94 7.37
Dana Index 0.00 100.00 100.00 0.00 N/A 1.44 1.00 7.55
90 Day U.S. Treasury Bill 14.24 0.22 -0.23 0.09 -1.44 N/A 0.00 0.00
Performance Review (Fiscal Years)
As of March 31, 2014
Dana LC
NONE
31
Pa
g
e
I
n
t
e
n
t
i
o
n
a
l
l
y
L
e
f
t
B
l
a
n
k
32
Peer Group Analysis - IM U.S. All Cap Core Equity (SA+CF)
Comparative Performance
-55.00
-40.00
-25.00
-10.00
5.00
20.00
35.00
50.00
65.00
R
e
t
u
r
n
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Oct-2010
To
Sep-2011
Oct-2009
To
Sep-2010
Oct-2008
To
Sep-2009
Oct-2007
To
Sep-2008
FiduciaryN/AN/AN/AN/AN/AN/AÅ
R300021.60 (78)30.20 (30)0.55 (62)10.96 (53)-6.42 (60)-21.52 (63)Å
Median23.8627.380.9811.05-6.06-21.11
-10.00
0.00
10.00
20.00
30.00
40.00
50.00
R
e
t
u
r
n
QTRFYTD1 YR2 YR3 YR4 YR5 YR
Fiduciary2.06 (44)10.44 (75)N/A N/A N/A N/A N/AÅ
R30001.97 (47)12.28 (52)22.61 (64)18.52 (66)14.61 (64)15.31 (61)21.93 (55)Å
Median1.8712.3223.7319.1815.1915.5822.09
1 Qtr
Ending
Dec-2013
1 Qtr
Ending
Sep-2013
1 Qtr
Ending
Jun-2013
1 Qtr
Ending
Mar-2013
1 Qtr
Ending
Dec-2012
1 Qtr
Ending
Sep-2012
Fiduciary 8.21 (88)N/A N/A N/A N/A N/A
R3000 10.10 (53)6.35 (78)2.69 (53)11.07 (62)0.25 (71)6.23 (35)
IM U.S. All Cap Core Equity (SA+CF) Median 10.12 7.54 2.70 11.29 0.74 5.93
Performance Review (Fiscal Years)
As of March 31, 2014
Fiduciary
NONE
33
Peer Group Analysis - IM U.S. Small Cap Core Equity (SA+CF)
Comparative Performance
-55.00
-40.00
-25.00
-10.00
5.00
20.00
35.00
50.00
65.00
R
e
t
u
r
n
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Oct-2010
To
Sep-2011
Oct-2009
To
Sep-2010
Oct-2008
To
Sep-2009
Oct-2007
To
Sep-2008
Dana SC31.48 (57)39.20 (8)3.82 (15)15.86 (35)-13.06 (84)-21.93 (80)Å
R200030.06 (71)31.91 (54)-3.53 (77)13.35 (72)-9.55 (65)-14.48 (25)Å
Median32.3032.35-0.2314.61-7.80-17.65
-10.00
0.00
10.00
20.00
30.00
40.00
50.00
R
e
t
u
r
n
QTRFYTD1 YR2 YR3 YR4 YR5 YR
Dana SC1.29 (49)12.77 (23)28.53 (41)23.69 (34)18.53 (8)21.74 (9)27.19 (34)Å
R20001.12 (53)9.94 (75)24.90 (74)20.52 (67)13.18 (81)16.21 (85)24.31 (74)Å
Median1.2511.2926.9921.7015.3318.7726.20
1 Qtr
Ending
Dec-2013
1 Qtr
Ending
Sep-2013
1 Qtr
Ending
Jun-2013
1 Qtr
Ending
Mar-2013
1 Qtr
Ending
Dec-2012
1 Qtr
Ending
Sep-2012
Dana SC 11.33 (22)9.64 (68)3.96 (51)14.86 (10)0.43 (93)6.89 (17)
R2000 8.72 (78)10.21 (55)3.08 (60)12.39 (59)1.85 (68)5.25 (56)
IM U.S. Small Cap Core Equity (SA+CF) Median 9.74 10.45 3.97 12.82 2.40 5.49
Performance Review (Fiscal Years)
As of March 31, 2014
Dana SC
NONE
34
Peer Group Scattergram - 3 Years
3 Yr Rolling Under/Over Performance - 5 Years
Peer Group Scattergram - 5 Years
3 Yr Rolling Percentile Ranking - 5 Years
Historical Statistics - 3 Years
Historical Statistics - 5 Years
0.0
25.0
50.0
75.0
100.0R
e
t
u
r
n
P
e
r
c
e
n
t
i
l
e
R
a
n
k
6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
Dana SC20 8 (40%)1 (5%)4 (20%)7 (35%)Å
R200020 0 (0%)2 (10%)9 (45%)9 (45%)Å
Over Performance Under Performance
Earliest Date Latest Date
-50.0
0.0
50.0
D
a
n
a
S
C
(
%
)
-50.0 -45.0 -40.0 -35.0 -30.0 -25.0 -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.050.0
R2000 (%)
Over
Performance
Under
Performance
10.00
15.00
20.00
R
e
t
u
r
n
(
%
)
19.10 19.20 19.30 19.40 19.50 19.60 19.7019.80
Risk (Standard Deviation %)
Return Standard
Deviation
Dana SC 18.53 19.57Å
R2000 13.18 19.18Å
Median 15.33 19.66¾
22.00
24.00
26.00
28.00
R
e
t
u
r
n
(
%
)
18.60 18.80 19.00 19.20 19.40 19.60 19.8020.00
Risk (Standard Deviation %)
Return Standard
Deviation
Dana SC 27.19 18.87Å
R2000 24.31 19.83Å
Median 26.20 19.70¾
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
Dana SC 4.41 105.60 80.73 5.12 1.06 1.10 0.98 9.36
R2000 0.00 100.00 100.00 0.00 N/A 0.83 1.00 9.91
90 Day U.S. Treasury Bill 16.55 0.11 -0.18 0.06 -0.83 N/A 0.00 0.01
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
Dana SC 4.95 95.93 77.35 4.97 0.41 1.49 0.88 9.01
R2000 0.00 100.00 100.00 0.00 N/A 1.25 1.00 10.27
90 Day U.S. Treasury Bill 18.84 0.17 -0.19 0.10 -1.25 N/A 0.00 0.00
Performance Review (Fiscal Years)
As of March 31, 2014
Dana SC
NONE
35
Peer Group Analysis - IM International Large Cap Value Equity (SA+CF)
Comparative Performance
-55.00
-40.00
-25.00
-10.00
5.00
20.00
35.00
50.00
R
e
t
u
r
n
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Oct-2010
To
Sep-2011
Oct-2009
To
Sep-2010
Oct-2008
To
Sep-2009
Oct-2007
To
Sep-2008
RBC27.45 (16)24.65 (3)-8.87 (57)12.31 (10)7.72 (39)-29.87 (70)Å
MSCI ACW16.98 (82)15.04 (50)-10.42 (70)8.00 (36)6.43 (47)-29.97 (70)Å
Median22.6315.01-8.414.956.01-27.38
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
R
e
t
u
r
n
QTRFYTD1 YR2 YR3 YR4 YR5 YR
RBC4.13 (6)16.35 (1)27.52 (8)24.51 (2)13.58 (6)16.05 (1)20.64 (11)Å
MSCI ACW0.61 (64)5.45 (83)12.80 (89)10.82 (90)4.63 (83)6.80 (78)16.04 (56)Å
Median1.137.4120.2414.527.518.7716.62
1 Qtr
Ending
Dec-2013
1 Qtr
Ending
Sep-2013
1 Qtr
Ending
Jun-2013
1 Qtr
Ending
Mar-2013
1 Qtr
Ending
Dec-2012
1 Qtr
Ending
Sep-2012
RBC 11.73 (1)8.86 (78)0.67 (34)8.77 (2)6.92 (34)11.26 (2)
MSCI ACW 4.81 (83)10.17 (59)-2.90 (89)3.27 (69)5.89 (63)7.49 (43)
IM International Large Cap Value Equity (SA+CF) Median 6.11 10.79 0.03 4.19 6.26 7.27
Performance Review (Fiscal Years)
As of March 31, 2014
RBC
NONE
36
Peer Group Scattergram - 3 Years
3 Yr Rolling Under/Over Performance - 5 Years
Peer Group Scattergram - 5 Years
3 Yr Rolling Percentile Ranking - 5 Years
Historical Statistics - 3 Years
Historical Statistics - 5 Years
0.0
25.0
50.0
75.0
100.0R
e
t
u
r
n
P
e
r
c
e
n
t
i
l
e
R
a
n
k
6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
RBC 20 11 (55%)5 (25%)3 (15%)1 (5%)Å
MSCI ACW20 0 (0%)9 (45%)7 (35%)4 (20%)Å
Over Performance Under Performance
Earliest Date Latest Date
-20.0
0.0
20.0
40.0
R
B
C
(
%
)
-20.0 -16.0 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 36.040.0
MSCI ACW (%)
Over
Performance
Under
Performance
0.00
10.00
20.00
R
e
t
u
r
n
(
%
)
15.50 16.00 16.50 17.00 17.50 18.00 18.50 19.00 19.5020.00
Risk (Standard Deviation %)
Return Standard
Deviation
RBC 13.58 19.30Å
MSCI ACW 4.63 16.32Å
Median 7.51 16.59¾
15.00
20.00
25.00
R
e
t
u
r
n
(
%
)
18.60 18.90 19.20 19.50 19.80 20.10 20.40 20.7021.00
Risk (Standard Deviation %)
Return Standard
Deviation
RBC 20.64 18.78Å
MSCI ACW 16.04 20.66Å
Median 16.62 19.87¾
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
RBC 5.38 125.97 90.62 8.66 1.58 0.80 1.02 11.46
MSCI ACW 0.00 100.00 100.00 0.00 N/A 0.35 1.00 11.72
90 Day U.S. Treasury Bill 16.62 0.15 -0.12 0.06 -0.35 N/A 0.00 0.01
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
RBC 7.54 100.74 79.38 6.23 0.50 1.16 0.86 9.75
MSCI ACW 0.00 100.00 100.00 0.00 N/A 0.89 1.00 10.69
90 Day U.S. Treasury Bill 18.52 0.18 -0.21 0.09 -0.89 N/A 0.00 0.00
Performance Review (Fiscal Years)
As of March 31, 2014
RBC
NONE
37
Peer Group Analysis - IM International Multi-Cap Core Equity (MF)
Comparative Performance
-55.00
-40.00
-25.00
-10.00
5.00
20.00
35.00
50.00
R
e
t
u
r
n
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Oct-2010
To
Sep-2011
Oct-2009
To
Sep-2010
Oct-2008
To
Sep-2009
Oct-2007
To
Sep-2008
M & N20.93 (49)16.04 (39)-12.51 (72)2.52 (82)N/AN/AÅ
MSCI ACW16.98 (80)15.04 (56)-10.42 (41)8.00 (23)6.43 (26)-29.97 (32)Å
Median20.6415.37-11.095.132.20-31.36
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
R
e
t
u
r
n
QTRFYTD1 YR2 YR3 YR4 YR5 YR
M & N2.13 (10)6.76 (40)15.95 (48)11.91 (63)5.21 (67)6.94 (65)N/AÅ
MSCI ACW0.61 (40)5.45 (66)12.80 (76)10.82 (73)4.63 (73)6.80 (68)16.04 (35)Å
Median0.396.1115.7513.336.437.7515.39
1 Qtr
Ending
Dec-2013
1 Qtr
Ending
Sep-2013
1 Qtr
Ending
Jun-2013
1 Qtr
Ending
Mar-2013
1 Qtr
Ending
Dec-2012
1 Qtr
Ending
Sep-2012
M & N 4.54 (88)9.59 (64)-0.90 (48)5.15 (25)5.89 (67)6.93 (39)
MSCI ACW 4.81 (83)10.17 (49)-2.90 (82)3.27 (61)5.89 (67)7.49 (23)
IM International Multi-Cap Core Equity (MF) Median 5.86 10.13 -1.03 3.90 6.62 6.57
Performance Review (Fiscal Years)
As of March 31, 2014
M & N
NONE
38
Peer Group Scattergram - 3 Years
3 Yr Rolling Under/Over Performance - 5 Years
Peer Group Scattergram - 5 Years
3 Yr Rolling Percentile Ranking - 5 Years
Historical Statistics - 3 Years
Historical Statistics - 5 Years
0.0
25.0
50.0
75.0
100.0R
e
t
u
r
n
P
e
r
c
e
n
t
i
l
e
R
a
n
k
6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
M & N 8 0 (0%)1 (13%)6 (75%)1 (13%)Å
MSCI ACW20 8 (40%)7 (35%)4 (20%)1 (5%)Å
Over Performance Under Performance
Earliest Date Latest Date
-6.0
0.0
6.0
12.0
M
&
N
(
%
)
-6.0-5.5-5.0-4.5-4.0-3.5-3.0-2.5-2.0-1.5-1.0-0.50.00.5 1.01.5 2.02.5 3.0 3.54.0 4.55.0 5.56.0 6.57.0 7.5 8.08.5 9.09.510.010.511.011.512.0
MSCI ACW (%)
Over
Performance
Under
Performance
3.00
4.50
6.00
7.50
R
e
t
u
r
n
(
%
)
16.20 16.50 16.80 17.10 17.40 17.70 18.00 18.3018.60
Risk (Standard Deviation %)
Return Standard
Deviation
M & N 5.21 18.08Å
MSCI ACW 4.63 16.62Å
Median 6.43 16.50¾
15.00
15.50
16.00
16.50
R
e
t
u
r
n
(
%
)
18.38 18.40 18.42 18.44 18.46 18.48 18.50 18.52 18.5418.56
Risk (Standard Deviation %)
Return Standard
Deviation
M & N N/A N/AÅ
MSCI ACW 16.04 18.53Å
Median 15.39 18.41¾
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
M & N 4.56 106.33 104.08 0.50 0.18 0.37 1.05 12.72
MSCI ACW 0.00 100.00 100.00 0.00 N/A 0.35 1.00 11.72
90 Day U.S. Treasury Bill 16.62 0.15 -0.12 0.06 -0.35 N/A 0.00 0.01
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
M & N N/A N/A N/A N/A N/A N/A N/A N/A
MSCI ACW 0.00 100.00 100.00 0.00 N/A 0.89 1.00 10.69
90 Day U.S. Treasury Bill 18.52 0.18 -0.21 0.09 -0.89 N/A 0.00 0.00
Performance Review (Fiscal Years)
As of March 31, 2014
M & N
NONE
39
Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (SA+CF)
Comparative Performance
-12.00
-8.00
-4.00
0.00
4.00
8.00
12.00
16.00
20.00
24.00
R
e
t
u
r
n
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Oct-2010
To
Sep-2011
Oct-2009
To
Sep-2010
Oct-2008
To
Sep-2009
Oct-2007
To
Sep-2008
Agincourt-1.40 (60)6.96 (44)4.92 (69)9.55 (38)14.76 (19)N/AÅ
BC Agg-1.68 (81)5.16 (91)5.26 (49)8.16 (87)10.56 (80)3.65 (32)Å
Median-1.286.625.269.2612.342.57
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
12.00
R
e
t
u
r
n
QTRFYTD1 YR2 YR3 YR4 YR5 YR
Agincourt1.88 (67)1.99 (52)0.29 (49)2.41 (57)4.30 (50)4.74 (46)5.59 (66)Å
BC Agg1.84 (74)1.70 (82)-0.10 (75)1.82 (85)3.75 (86)4.09 (85)4.80 (85)Å
Median1.982.030.282.474.274.685.98
1 Qtr
Ending
Dec-2013
1 Qtr
Ending
Sep-2013
1 Qtr
Ending
Jun-2013
1 Qtr
Ending
Mar-2013
1 Qtr
Ending
Dec-2012
1 Qtr
Ending
Sep-2012
Agincourt 0.11 (50)0.81 (20)-2.46 (57)-0.07 (78)0.34 (62)2.21 (45)
BC Agg -0.14 (77)0.57 (64)-2.32 (37)-0.12 (87)0.21 (82)1.58 (90)
IM U.S. Broad Market Core Fixed Income (SA+CF) Median 0.09 0.63 -2.42 0.09 0.46 2.14
Performance Review (Fiscal Years)
As of March 31, 2014
Agincourt
NONE
40
Peer Group Scattergram - 3 Years
3 Yr Rolling Under/Over Performance - 5 Years
Peer Group Scattergram - 5 Years
3 Yr Rolling Percentile Ranking - 5 Years
Historical Statistics - 3 Years
Historical Statistics - 5 Years
0.0
25.0
50.0
75.0
100.0R
e
t
u
r
n
P
e
r
c
e
n
t
i
l
e
R
a
n
k
6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
Agincourt11 0 (0%)3 (27%)8 (73%)0 (0%)Å
BC Agg20 0 (0%)1 (5%)5 (25%)14 (70%)ÅOver Performance Earliest Date Latest Date
0.0
5.0
10.0
15.0
Ag
i
n
c
o
u
r
t
(
%
)
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.510.010.511.011.512.012.513.013.514.014.515.0
BC Agg (%)
Over
Performance
Under
Performance
3.50
4.00
4.50
R
e
t
u
r
n
(
%
)
2.76 2.79 2.82 2.85 2.88 2.91 2.94 2.97 3.003.03
Risk (Standard Deviation %)
Return Standard
Deviation
Agincourt 4.30 2.82Å
BC Agg 3.75 2.98Å
Median 4.27 2.90¾
4.00
5.00
6.00
7.00
R
e
t
u
r
n
(
%
)
3.04 3.08 3.12 3.16 3.20 3.24 3.28 3.32 3.36 3.40 3.443.48
Risk (Standard Deviation %)
Return Standard
Deviation
Agincourt 5.59 3.10Å
BC Agg 4.80 3.14Å
Median 5.98 3.41¾
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
Agincourt 0.70 108.68 99.48 0.54 0.76 1.46 1.00 1.60
BC Agg 0.00 100.00 100.00 0.00 N/A 1.31 1.00 1.55
90 Day U.S. Treasury Bill 2.80 0.74 -0.78 0.06 -1.31 N/A 0.00 0.01
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
Agincourt 1.13 115.15 112.31 0.18 0.68 1.63 1.13 1.90
BC Agg 0.00 100.00 100.00 0.00 N/A 1.66 1.00 1.50
90 Day U.S. Treasury Bill 2.80 1.19 -0.88 0.09 -1.66 N/A 0.00 0.00
Performance Review (Fiscal Years)
As of March 31, 2014
Agincourt
NONE
41
Peer Group Analysis - IM U.S. Intermediate Duration (SA+CF)
Comparative Performance
-8.00
-4.00
0.00
4.00
8.00
12.00
16.00
20.00
24.00
R
e
t
u
r
n
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Oct-2010
To
Sep-2011
Oct-2009
To
Sep-2010
Oct-2008
To
Sep-2009
Oct-2007
To
Sep-2008
GHA0.88 (8)9.51 (4)2.32 (90)8.87 (28)15.91 (7)N/AÅ
BC Int Agg-0.71 (77)4.31 (85)4.22 (21)7.52 (77)9.69 (82)4.16 (35)Å
Median-0.245.573.588.2711.463.26
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
R
e
t
u
r
n
QTRFYTD1 YR2 YR3 YR4 YR5 YR
GHA1.77 (13)2.87 (8)2.05 (5)4.13 (6)4.92 (6)5.21 (8)6.72 (14)Å
BC Int Agg1.20 (48)1.06 (79)0.01 (76)1.51 (85)3.04 (80)3.47 (78)4.24 (79)Å
Median1.191.380.412.103.503.874.98
1 Qtr
Ending
Dec-2013
1 Qtr
Ending
Sep-2013
1 Qtr
Ending
Jun-2013
1 Qtr
Ending
Mar-2013
1 Qtr
Ending
Dec-2012
1 Qtr
Ending
Sep-2012
GHA 1.08 (5)0.93 (17)-1.70 (43)0.67 (12)1.00 (8)3.10 (4)
Barclays Int Agg -0.14 (92)0.76 (41)-1.78 (53)0.15 (91)0.18 (85)1.36 (86)
IM U.S. Intermediate Duration (SA+CF) Median 0.20 0.72 -1.75 0.34 0.40 1.74
Performance Review (Fiscal Years)
As of March 31, 2014
GHA
NONE
42
Peer Group Scattergram - 3 Years
3 Yr Rolling Under/Over Performance - 5 Years
Peer Group Scattergram - 5 Years
3 Yr Rolling Percentile Ranking - 5 Years
Historical Statistics - 3 Years
Historical Statistics - 5 Years
0.0
25.0
50.0
75.0
100.0R
e
t
u
r
n
P
e
r
c
e
n
t
i
l
e
R
a
n
k
6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
GHA 12 11 (92%)1 (8%)0 (0%)0 (0%)Å
BC Int Agg20 0 (0%)1 (5%)13 (65%)6 (30%)ÅOver Performance Earliest Date Latest Date
2.5
5.0
7.5
10.0
G
H
A
(
%
)
1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.510.0
Barclays Int Agg (%)
Over
Performance
Under
Performance
1.50
3.00
4.50
6.00
R
e
t
u
r
n
(
%
)
2.00 2.10 2.20 2.30 2.40 2.50 2.60 2.70
Risk (Standard Deviation %)
Return Standard
Deviation
GHA 4.92 2.58Å
BC Int Agg 3.04 2.10Å
Median 3.50 2.09¾
2.00
4.00
6.00
8.00
R
e
t
u
r
n
(
%
)
2.20 2.40 2.60 2.80 3.00 3.20 3.40
Risk (Standard Deviation %)
Return Standard
Deviation
GHA 6.72 3.18Å
BC Int Agg 4.24 2.38Å
Median 4.98 2.71¾
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
GHA 2.38 151.29 132.49 1.91 0.77 1.53 0.98 1.68
Barclays Int Agg 0.00 100.00 100.00 0.00 N/A 1.42 1.00 1.11
90 Day U.S. Treasury Bill 2.09 0.95 -1.16 0.06 -1.42 N/A 0.00 0.01
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
GHA 2.39 141.85 99.42 2.28 1.00 1.94 1.03 1.77
Barclays Int Agg 0.00 100.00 100.00 0.00 N/A 1.82 1.00 1.16
90 Day U.S. Treasury Bill 2.25 1.41 -1.20 0.09 -1.82 N/A 0.00 0.00
Performance Review (Fiscal Years)
As of March 31, 2014
GHA
NONE
43
Pa
g
e
I
n
t
e
n
t
i
o
n
a
l
l
y
L
e
f
t
B
l
a
n
k
44
Peer Group Analysis - IM International Fixed Income (MF)
Comparative Performance
-20.00
-10.00
0.00
10.00
20.00
30.00
40.00
R
e
t
u
r
n
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Oct-2010
To
Sep-2011
Oct-2009
To
Sep-2010
Oct-2008
To
Sep-2009
Oct-2007
To
Sep-2008
Templeton GB3.44 (8)13.25 (5)N/AN/AN/AN/AÅ
Citi WGB-4.60 (62)3.29 (90)4.61 (6)4.99 (64)13.78 (71)5.90 (1)Å
Median-3.386.511.706.6616.13-0.05
-10.00
-7.00
-4.00
-1.00
2.00
5.00
8.00
11.00
14.00
R
e
t
u
r
n
QTRFYTD1 YR2 YR3 YR4 YR5 YR
Templeton GB0.86 (90)3.62 (16)1.83 (33)5.76 (11)N/AN/AN/AÅ
Citi WGB2.66 (33)1.55 (82)1.37 (47)0.35 (77)1.91 (62)3.23 (62)3.84 (80)Å
Median2.392.521.251.872.293.685.77
1 Qtr
Ending
Dec-2013
1 Qtr
Ending
Sep-2013
1 Qtr
Ending
Jun-2013
1 Qtr
Ending
Mar-2013
1 Qtr
Ending
Dec-2012
1 Qtr
Ending
Sep-2012
Templeton GB 2.74 (6)1.03 (71)-2.73 (16)1.38 (9)3.83 (6)5.40 (12)
Citi WGB -1.09 (91)2.88 (40)-2.97 (23)-2.77 (55)-1.71 (82)2.99 (90)
IM International Fixed Income (MF) Median 0.14 1.93 -3.47 -2.63 0.19 4.56
Performance Review (Fiscal Years)
As of March 31, 2014
Templeton GB
NONE
45
Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF)
Comparative Performance
-85.00
-70.00
-55.00
-40.00
-25.00
-10.00
5.00
20.00
35.00
50.00
R
e
t
u
r
n
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Oct-2010
To
Sep-2011
Oct-2009
To
Sep-2010
Oct-2008
To
Sep-2009
Oct-2007
To
Sep-2008
American12.27 (70)11.57 (66)16.11 (74)2.72 (75)-32.96 (41)4.98 (36)Å
NCREIF ODCE13.01 (50)11.61 (66)18.27 (39)6.97 (46)-35.19 (52)3.18 (54)Å
Median12.9612.8916.626.39 -34.36 3.60
-4.00
0.00
4.00
8.00
12.00
16.00
20.00
24.00
28.00
R
e
t
u
r
n
QTRFYTD1 YR2 YR3 YR4 YR5 YR
American3.20 (25)5.88 (41)13.15 (62)11.91 (64)12.42 (78)13.55 (92)5.76 (71)Å
NCREIF ODCE2.47 (49)5.72 (57)13.71 (56)12.22 (63)13.03 (63)14.77 (50)7.30 (57)Å
Median 2.455.7513.7213.4713.8314.757.73
1 Qtr
Ending
Dec-2013
1 Qtr
Ending
Sep-2013
1 Qtr
Ending
Jun-2013
1 Qtr
Ending
Mar-2013
1 Qtr
Ending
Dec-2012
1 Qtr
Ending
Sep-2012
American 2.59 (77)3.40 (54)3.36 (65)2.49 (68)2.50 (53)2.58 (69)
NCREIF ODCE 3.17 (52)3.56 (50)3.86 (50)2.68 (60)2.33 (63)2.77 (53)
IM U.S. Open End Private Real Estate (SA+CF) Median 3.22 3.54 3.86 3.10 2.52 2.79
Performance Review (Fiscal Years)
As of March 31, 2014
American
NONE
46
Peer Group Scattergram - 3 Years
3 Yr Rolling Under/Over Performance - 5 Years
Peer Group Scattergram - 5 Years
3 Yr Rolling Percentile Ranking - 5 Years
Historical Statistics - 3 Years
Historical Statistics - 5 Years
0.0
25.0
50.0
75.0
100.0R
e
t
u
r
n
P
e
r
c
e
n
t
i
l
e
R
a
n
k
6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
American 19 0 (0%)7 (37%)5 (26%)7 (37%)Å
NCREIF ODCE20 0 (0%)13 (65%)7 (35%)0 (0%)Å
Over Performance Under Performance
Earliest Date Latest Date
-20.0
0.0
20.0
Am
e
r
i
c
a
n
(
%
)
-20.0 -16.0 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.024.0
NCREIF ODCE (%)
Over
Performance
Under
Performance
12.00
13.00
14.00
15.00
R
e
t
u
r
n
(
%
)
0.60 0.75 0.90 1.05 1.20 1.35 1.50 1.65 1.801.95
Risk (Standard Deviation %)
Return Standard
Deviation
American 12.42 0.82Å
NCREIF ODCE 13.03 1.28Å
Median 13.83 1.71¾
4.50
6.00
7.50
9.00
R
e
t
u
r
n
(
%
)
7.50 7.60 7.70 7.80 7.90 8.00 8.10 8.20 8.30 8.408.50
Risk (Standard Deviation %)
Return Standard
Deviation
American 5.76 7.69Å
NCREIF ODCE 7.30 7.61Å
Median 7.73 8.33¾
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
American 0.78 95.52 N/A 5.53 -0.71 14.40 0.52 0.00
NCREIF ODCE 0.00 100.00 N/A 0.00 N/A 9.67 1.00 0.00
90 Day U.S. Treasury Bill 1.28 0.50 N/A 0.05 -9.67 N/A 0.00 0.00
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
American 1.65 89.72 107.37 -1.35 -0.89 0.76 0.99 5.77
NCREIF ODCE 0.00 100.00 100.00 0.00 N/A 0.96 1.00 5.43
90 Day U.S. Treasury Bill 7.62 0.63 -0.66 0.11 -0.96 N/A 0.00 0.00
Performance Review (Fiscal Years)
As of March 31, 2014
American
NONE
47
Peer Group Analysis - IM U.S. Open End Private Real Estate (SA+CF)
Comparative Performance
-85.00
-70.00
-55.00
-40.00
-25.00
-10.00
5.00
20.00
35.00
50.00
R
e
t
u
r
n
Oct-2012
To
Sep-2013
Oct-2011
To
Sep-2012
Oct-2010
To
Sep-2011
Oct-2009
To
Sep-2010
Oct-2008
To
Sep-2009
Oct-2007
To
Sep-2008
Intercontinental18.19 (8)13.33 (42)15.80 (79)N/AN/AN/AÅ
NCREIF ODCE13.01 (50)11.61 (66)18.27 (39)6.97 (46)-35.19 (52)3.18 (54)Å
Median12.9612.8916.626.39 -34.36 3.60
-4.00
0.00
4.00
8.00
12.00
16.00
20.00
24.00
28.00
R
e
t
u
r
n
QTRFYTD1 YR2 YR3 YR4 YR5 YR
Intercontinental1.87 (89)7.06 (20)15.81 (22)15.55 (15)15.19 (27)N/AN/AÅ
NCREIF ODCE2.47 (49)5.72 (57)13.71 (56)12.22 (63)13.03 (63)14.77 (50)7.30 (57)Å
Median 2.455.7513.7213.4713.8314.757.73
1 Qtr
Ending
Dec-2013
1 Qtr
Ending
Sep-2013
1 Qtr
Ending
Jun-2013
1 Qtr
Ending
Mar-2013
1 Qtr
Ending
Dec-2012
1 Qtr
Ending
Sep-2012
Intercontinental 5.10 (4)3.66 (42)4.35 (27)2.78 (58)6.31 (6)2.80 (50)
NCREIF ODCE 3.17 (52)3.56 (50)3.86 (50)2.68 (60)2.33 (63)2.77 (53)
IM U.S. Open End Private Real Estate (SA+CF) Median 3.22 3.54 3.86 3.10 2.52 2.79
Performance Review (Fiscal Years)
As of March 31, 2014
Intercontinental
NONE
48
Peer Group Scattergram - 3 Years
3 Yr Rolling Under/Over Performance - 5 Years
Peer Group Scattergram - 5 Years
3 Yr Rolling Percentile Ranking - 5 Years
Historical Statistics - 3 Years
Historical Statistics - 5 Years
0.0
25.0
50.0
75.0
100.0R
e
t
u
r
n
P
e
r
c
e
n
t
i
l
e
R
a
n
k
6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 3/14
Total Period 5-25
Count
25-Median
Count
Median-75
Count
75-95
Count
Intercontinental3 1 (33%)2 (67%)0 (0%)0 (0%)Å
NCREIF ODCE20 0 (0%)13 (65%)7 (35%)0 (0%)ÅOver Performance Earliest Date Latest Date
13.0
13.5
14.0
14.5
15.0
15.5
16.0
16.5
I
n
t
e
r
c
o
n
t
i
n
e
n
t
a
l
(
%
)
12.8 13.0 13.2 13.4 13.6 13.8 14.0 14.2 14.4 14.6 14.8 15.0 15.2 15.4 15.6 15.8 16.0 16.2 16.4
NCREIF ODCE (%)
Over
Performance
Under
Performance
12.00
13.50
15.00
16.50
R
e
t
u
r
n
(
%
)
1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.402.60
Risk (Standard Deviation %)
Return Standard
Deviation
Intercontinental 15.19 2.35Å
NCREIF ODCE 13.03 1.28Å
Median 13.83 1.71¾
7.00
7.50
8.00
R
e
t
u
r
n
(
%
)
7.50 7.60 7.70 7.80 7.90 8.00 8.10 8.20 8.30 8.408.50
Risk (Standard Deviation %)
Return Standard
Deviation
Intercontinental N/A N/AÅ
NCREIF ODCE 7.30 7.61Å
Median 7.73 8.33¾
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
Intercontinental 2.64 115.90 N/A 14.39 0.75 6.12 0.06 0.00
NCREIF ODCE 0.00 100.00 N/A 0.00 N/A 9.67 1.00 0.00
90 Day U.S. Treasury Bill 1.28 0.50 N/A 0.05 -9.67 N/A 0.00 0.00
Tracking
Error
Up
Market
Capture
Down
Market
Capture
Alpha Information
Ratio
Sharpe
Ratio Beta Downside
Risk
Intercontinental N/A N/A N/A N/A N/A N/A N/A N/A
NCREIF ODCE 0.00 100.00 100.00 0.00 N/A 0.96 1.00 5.43
90 Day U.S. Treasury Bill 7.62 0.63 -0.66 0.11 -0.96 N/A 0.00 0.00
Performance Review (Fiscal Years)
As of March 31, 2014
Intercontinental
NONE
49
Total Fund Compliance:Yes No N/A
Equity Compliance:Yes No N/A
Fixed Income Compliance:Yes No N/A
50
Yes No N/A
Manager Compliance:
Yes No N/A Yes No N/A Yes No N/A Yes No N/A
51
Total Fund Policy
Allocation Mandate Weight (%)
May-1998
S&P 500 Index 60.00
Barclays U.S. Government/Credit 35.00
Citigroup 3 Month T-Bill Index 5.00
Jan-2001
S&P 500 Index 65.00
Barclays U.S. Government/Credit 30.00
Citigroup 3 Month T-Bill Index 5.00
Apr-2003
S&P 500 Index 65.00
Barclays Intermediate U.S. Gov/Credit Index 30.00
Citigroup 3 Month T-Bill Index 5.00
Jul-2005
S&P 500 Index 55.00
Barclays Intermediate U.S. Gov/Credit Index 30.00
MSCI EAFE Index 10.00
Citigroup 3 Month T-Bill Index 5.00
Oct-2007
Russell 3000 Index 55.00
Barclays Intermediate Aggregate Index 30.00
MSCI EAFE Index 10.00
Citigroup 3 Month T-Bill Index 5.00
Jul-2008
Russell 3000 Index 55.00
Barclays Intermediate Aggregate Index 25.00
MSCI EAFE Index 10.00
NCREIF Property Index 10.00
Oct-2011
Russell 3000 Index 55.00
MSCI EAFE Index 10.00
Barclays Intermediate Aggregate Index 20.00
Citigroup World Government Bond 5.00
NCREIF Property Index 10.00
Allocation Mandate Weight (%)
Jul-2013
Russell 3000 Index 55.00
MSCI AC World ex USA 10.00
Barclays Aggregate Index 10.00
Barclays Intermediate Aggregate Index 10.00
Citigroup World Government Bond 5.00
NCREIF Fund Index-Open End Diversified Core (EW)10.00
Citigroup 3 Month T-Bill Index 0.00
Benchmark History
Investment Policy Benchmarks
As of March 31, 2014
52
Total Equity Policy
Allocation Mandate Weight (%)
Jul-2008
MSCI EAFE Index 15.00
Russell 3000 Index 85.00
Oct-2011
MSCI EAFE Index 15.00
Russell 3000 Index 85.00
Jul-2013
Russell 3000 Index 85.00
MSCI AC World ex USA 15.00
Dana Custom Index
Allocation Mandate Weight (%)
Jul-2002
Russell 3000 Index 100.00
Jan-2008
Russell 1000 Value Index 100.00
Jan-2011
S&P 500 Index 100.00
Vanguard Total Stock Market Index
Allocation Mandate Weight (%)
Jun-2003
MSCI US Broad Market Index 100.00
Jun-2013
CRSP U.S. Total Market TR Index 100.00
Total Domestic Equity Policy
Allocation Mandate Weight (%)
May-1998
S&P 500 Index 100.00
Jul-2005
Russell 3000 Index 100.00
Oct-2011
Russell 3000 Index 100.00
Total International Equity Policy
Allocation Mandate Weight (%)
May-2007
MSCI EAFE Index 100.00
Jul-2013
MSCI AC World ex USA 100.00
Benchmark History
Investment Policy Benchmarks
As of March 31, 2014
Prior to 6/1/2011, the data and inception dates for Dana LC and Dana SC were provided by the manager.
53
Total Real Estate Policy
Allocation Mandate Weight (%)
Jul-2006
NCREIF Property Index 100.00
Oct-2011
NCREIF Property Index 100.00
Jul-2013
NCREIF Fund Index-Open End Diversified Core (EW)100.00
Total Fixed Income Policy
Allocation Mandate Weight (%)
May-1998
Barclays U.S. Government/Credit 100.00
Apr-2003
Barclays Intermediate U.S. Gov/Credit Index 100.00
Oct-2007
Barclays Intermediate Aggregate Index 100.00
Oct-2011
Barclays Intermediate Aggregate Index 80.00
Citigroup World Government Bond 20.00
Jul-2013
Barclays Aggregate Index 40.00
Barclays Intermediate Aggregate Index 40.00
Citigroup World Government Bond 20.00
Total Domestic Fixed Income Policy
Allocation Mandate Weight (%)
May-1998
Barclays U.S. Government/Credit 100.00
Apr-2003
Barclays Intermediate U.S. Gov/Credit Index 100.00
Oct-2007
Barclays Intermediate Aggregate Index 100.00
Oct-2011
Barclays Intermediate Aggregate Index 100.00
Jul-2013
Barclays Aggregate Index 50.00
Barclays Intermediate Aggregate Index 50.00
Benchmark History
Investment Policy Benchmarks
As of March 31, 2014
Prior to 6/1/2011, the data and inception dates for Dana LC and Dana SC were provided by the manager.
54
The Bogdahn Group Your Service Team Contact Information
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56
Disclosures
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57
800 N. Magnolia Avenue, Suite 1300, Orlando, FL 32803 | P 407.423.7911 | cbh.com
November 6, 2013
Board of Trustees
City of Palm Beach Gardens Firefighters' Pension Fund
Palm Beach Gardens, Florida
Board of Trustees:
This engagement letter between City of Palm Beach Gardens Firefighters' Pension
Fund Palm Beach Gardens Firefighters' Pension Fund(hereafter referred to as the “Fund”)
and Cherry Bekaert LLP (the “Firm” or “CB”) sets forth the nature and scope of the services
we will provide, the Fund’s required involvement and assistance in support of our services,
the related fee arrangements and other Terms and Conditions, which are attached hereto
and incorporated by reference, designed to facilitate the performance of our professional
services and to achieve the mutually agreed upon objectives of the Fund.
SUMMARY OF SERVICES
We will provide the following services to the Fund as of and for the year ended September
30, 2013:
Audit services
1. We will audit the basic financial statements of the Fund as of and for the year ended
September 30, 2013.
2. We will audit the schedule of administrative and investment expenses. As part of our
engagement, we will apply certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used
to prepare the financial statements or the financial statements themselves.
3. We will apply limited procedures to the pension plan information and management’s
discussion and analysis (MD&A)) which will consist of inquiries of management about the
methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the financial statements.
Accounting and other services
We will provide the following additional services:
1. Assist in the preparation of the financial statements and footnotes.
YOUR EXPECTATIONS
As part of our planning process, we will discuss with you your expectations of CB, changes
that occurred during the year, your views on risks facing you, any relationship issues with CB,
and specific engagement arrangements and timing. Our services plan, which includes our
audit plan, is designed to provide a foundation for an effective, efficient, and quality-focused
approach to accomplish the engagement objectives and meet or exceed your expectations.
Our service plan will be reviewed with you periodically and will serve as a benchmark against
which you will be able to measure our performance. Any additional services that you may
request, and that we agree to provide, will be the subject of separate written arrangements.
Town of Jupiter Police Officers' Pension Fund
November 6, 2013
Page 2
The engagement will be led by Jim Burdick, who will be responsible for assuring the overall
quality, value, and timeliness of the services provided to you.
AUDIT SERVICES
The objective of our audit is the expression of opinions as to whether your basic financial
statements are fairly presented, in all material respects, in conformity with U.S. generally
accepted accounting principles and to report on the fairness of the additional information
referred to in the Summary of Services section when considered in relation to the basic
financial statements taken as a whole. The objective also includes reporting on:
Internal control related to the financial statements and compliance with the provisions
of applicable laws, regulations, contracts, agreements and grants, noncompliance
with which could have a material effect on the financial statements in accordance
with Government Auditing Standards.
The reports on internal control and compliance will each include a paragraph that states that
the purpose of the report is solely to describe (1) the scope of testing of internal control over
financial reporting and compliance and the result of that testing and not to provide an opinion
on the effectiveness of internal control over financial reporting or on compliance, and (2) that
the report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering internal control over financial reporting and compliance. The
paragraph will also state that the report is not suitable for any other purpose.
Our audit will be conducted in accordance with auditing standards generally accepted in the
United States of America; Government Auditing Standards, issued by the Comptroller
General of the United States; and will include tests of accounting records and other
procedures as deemed necessary to enable us to express such opinions and to render the
required reports. If any of our opinions resulting from the procedures described above are
other than unqualified, we will fully discuss the reasons with you in advance. If, for any
reason, we are unable to complete the audit or are unable to form or have not formed
opinions, we may decline to express opinions or issue a report as a result of this
engagement.
ACCOUNTING AND OTHER SERVICES
Accounting services
We will advise Management about the application of appropriate accounting principles, and
may propose adjusting journal entries to the Fund’s financial statements. Management is
responsible for reviewing the entries and understanding the nature of any proposed entries
and the impact they have on the Fund’s financial statements. If, while reviewing the journal
entries, Management determines that a journal entry is inappropriate, it will be Management’s
responsibility to contact us to correct it.
Financial statement preparation
We will assist in the preparation of the Fund’s financial statements and notes, based on
information in the Fund’s accounting records. However, the responsibility for the Fund’s
financial statements and notes remains with Management. This responsibility includes
establishing and maintaining adequate records and effective internal controls over financial
reporting, the selection and application of accounting principles, the safeguarding of assets,
and adjusting the financial statements for any material misstatements as well as reviewing
and approving for publication the draft financial statements prepared with our assistance.
Town of Jupiter Police Officers' Pension Fund
November 6, 2013
Page 3
Management’s responsibilities related to accounting and other services
For all nonattest services we perform in connection with the engagement, you are
responsible for designating a competent employee to oversee the services, make any
management decisions, perform any management functions related to the services, evaluate
the adequacy of the services, and accept overall responsibility for the results of the services.
Prior to the release of the report, Management will need to sign a representation letter
acknowledging your responsibility for the results of these services.
FEES
The estimated fee contemplates only the services described in the Summary of Services
section of this letter. If Management requests additional services not listed above, we will
provide an estimate of those fees prior to commencing additional work.
The following summarizes the fees for the services described above:
Description of Services Estimated Fee
Audit services
Audit of the financial statements, including assistance with
Preparation of financial statements $14,050
If the foregoing is in accordance with your understanding, please sign a copy of this letter in
the space provided and return it to us. If you have any questions, please call Jim Burdick at
(407)423-7911.
Sincerely,
CHERRY BEKAERT LLP
ATTACHMENT – Engagement Letter Terms and Conditions
City of Palm Beach Gardens Firefighters' Pension Fund
ACCEPTED BY: ____________________________________________________________
TITLE: ________________________________________ DATE: ___________________
Attachment ‐ Page 1
Cherry Bekaert LLP
Engagement Letter Terms and Conditions
The following terms and conditions are an integral part of the attached engagement letter and should be
read in their entirety in conjunction with your review of the letter.
LIMITATIONS OF THE AUDIT REPORT
Should the Fund wish to include or incorporate by reference these financial statements and our report
thereon into any other document at some future date, we will consider granting permission to include our
report into another such document at the time of the request. However, we may be required by generally
accepted auditing standards (“GAAS”) to perform certain procedures before we can give our permission
to include our report in another document such as an annual report, private placement, regulator filing,
official statement, offering of debt securities, etc. You agree that you will not include or incorporate by
reference these financial statements and our report thereon, or our report into any other document
without our prior written permission. In addition, to avoid unnecessary delay or misunderstandings, it is
important to provide us with timely notice of your intention to issue any such document.
LIMITATIONS OF THE AUDIT PROCESS
In conducting the audit, we will perform tests of the accounting records and such other procedures as we
consider necessary in the circumstances to provide a reasonable basis for our opinion on the financial
statements. We also will assess the accounting principles used and significant estimates made by
Management, as well as evaluate the overall financial statement presentation.
Our audit will include procedures designed to obtain reasonable assurance of detecting misstatements
due to errors or fraud that are material to the financial statements. Absolute assurance is not attainable
because of the nature of audit evidence and the characteristics of fraud. For example, audits performed in
accordance with GAAS are based on the concept of selective testing of the data being examined and are,
therefore, subject to the limitation that material misstatements due to errors or fraud, if they exist, may not
be detected. Also, an audit is not designed to detect matters that are immaterial to the financial
statements. In addition, an audit conducted in accordance with GAAS does not include procedures
specifically designed to detect illegal acts having an indirect effect (e.g., violations of fraud and abuse
statutes that result in fines or penalties being imposed on the Fund) on the financial statements.
Similarly, in performing our audit we will be aware of the possibility that illegal acts may have occurred.
However, it should be recognized that our audit provides no assurance that illegal acts generally will be
detected, and only reasonable assurance that illegal acts having a direct and material effect on the
determination of financial statement amounts will be detected. We will inform you with respect to errors
and fraud, or illegal acts that come to our attention during the course of our audit unless clearly
inconsequential. In the event that we have to consult with the Fund’s counsel or counsel of our choosing
regarding any illegal acts we identify, additional fees incurred may be billed to the Fund. You agree to
cooperate fully with any procedures we deem necessary to perform with respect to these matters.
If, for any reason, we are unable to complete the audit, or are unable to form, or have not formed an
opinion on the financial statements, we may decline to express an opinion or decline to issue a report as
a result of the engagement. We will notify the appropriate party within your organization of our decision
and discuss the reasons supporting our position.
MANAGEMENT’S RESPONSIBILITIES RELATED TO THE AUDIT
Management is responsible for the fair presentation of the financial statements in conformity with GAAP,
including the appropriate basis of accounting is applied by all component units, if applicable, for making
all financial records and related information available to us, for ensuring that all material information is
Attachment ‐ Page 2
disclosed to us, and for identifying and ensuring that the Fund complies with the laws and regulations
applicable to its activities and with the provisions of contracts and grant agreements.
Management is responsible for the preparation of the supplementary information in conformity with
GAAP. Management agrees to include our report on the supplementary information in any document that
contains and indicates that we have reported on the supplementary information. Management also
agrees to include the audited financial statements with any presentation of the supplementary information
that includes our report thereon or make the audited financial statements readily available to users of the
supplementary information no later than the date the supplementary information is issued with our report
thereon.
Management is also responsible for adjusting the financial statements to correct material misstatements,
informing us of events that occurred subsequent to the balance sheet date until the date of the auditors’
report that might affect the financial statements or related disclosures and informing us of any discovery
of facts related to items that existed at the financial statement date that might affect the financial
statements or related disclosures.
Management is responsible for informing us of its views regarding the risk of fraud at the Fund.
Management must inform us of their knowledge of any allegations of fraud or suspected fraud affecting
the Fund received in communications from employees, former employees, regulators, or others and for
informing us about all known or suspected fraud affecting the Fund involving (a) Management, (b)
employees who have significant roles in internal control, and (c) others where the fraud could have a
material effect on the financial statements.
Management is responsible for the design and implementation of programs and controls over financial
reporting and to prevent and detect fraud. Appropriate supervisory review procedures are necessary to
provide reasonable assurance that adopted policies and prescribed procedures are adhered to and to
identify errors and fraud or illegal acts. As a part of our audit, we will consider the Fund’s internal control
structure, as required by GAAS, sufficient to plan the audit and to determine the nature, timing, and extent
of auditing procedures necessary for expressing our opinion concerning the financial statements. An audit
is not designed to provide any assurance on internal controls. As part of our consideration of the Fund’s
internal control structure, we will inform you of matters that come to our attention that represent significant
deficiencies or material weaknesses in the design or operation of the internal control structure.
Management is responsible for establishment and maintenance of a process for tracking the status of
audit findings and recommendations. Management is also responsible for identifying to us previous audits
or other engagements or studies related to the objectives discussed in the Audit Objectives section of this
letter. This responsibility includes relaying to us corrective actions taken to address significant findings
and recommendations resulting from those audits or other engagements or studies. You are also
responsible for providing management’s views on our current findings, conclusions and
recommendations, as well as your planned corrective actions, and the timing and format related thereto.
At the conclusion of the engagement, Management will provide to us a representation letter that, among
other things, addresses (1) Management’s responsibilities related to the audit and confirms certain
representations made to us during the audit, including, Management’s acknowledgement of its
responsibility for the design and implementation of programs and controls to prevent and detect fraud; (2)
Management’s responsibilities related to the monitoring of internal control over financial reporting; and (3)
Management’s knowledge, directly or from allegations by others, of fraud or suspected fraud affecting the
Fund. The representation letter will also affirm to us that Management believes that the effects of any
uncorrected misstatements, if any, pertaining to the financial statements are immaterial, both individually
and in the aggregate, to the financial statements taken as a whole. The Firm will rely on Management
providing these representations to us, both in the planning and performance of the audit, and in
considering the fees that we will charge to perform the audit.
Attachment ‐ Page 3
AUDIT PROCEDURES – GENERAL
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit will involve professional judgment about the number of
transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain
reasonable rather than absolute assurance about whether the financial statements are free of material
misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or
(4) violations of laws or governmental regulations that are attributable to the Fund or to acts by
management or employees acting on behalf of the Fund. Because the determination of abuse is
subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of
detecting abuse.
Because an audit is designed to provide reasonable, but not absolute assurance and because we will not
perform a detailed examination of all transactions, there is a risk that material misstatements or
noncompliance may exist and not be detected by us. In addition, an audit is not designed to detect
immaterial misstatements or violations of laws or governmental regulations that do not have a direct and
material effect on the financial statements or major programs. However, we will inform you of any material
errors and fraud, or illegal acts that come to our attention during the course of our audit. We will also
inform you of any violations of laws or governmental regulations that come to our attention, unless clearly
inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not
extend to any later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, and may include tests of the physical existence of inventories and direct confirmation of
receivables and certain other assets and liabilities by correspondence with selected individuals, creditors
and financial institutions. We will request written representations from your attorneys as part of the
engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will
also require certain written representations from you about the financial statements and related matters.
AUDIT PROCEDURES – INTERNAL CONTROLS
Our audit will include obtaining an understanding of the Fund and its environment, including internal
controls, sufficient to assess the risks of material misstatement of the financial statements and to design
the nature, timing and extent of further audit procedures. Tests of controls may be performed to test the
effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud
that are material to the financial statements and to preventing and detecting misstatements resulting from
illegal acts and other noncompliance matters that have a direct and material effect on the financial
statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on
internal control and, accordingly, no opinion will be expressed in our report on internal control issued
pursuant to Government Auditing Standards.
An audit is not designed to provide assurance on internal control or to identify significant deficiencies.
However, during the audit, we will communicate to management and those charged with governance
internal control related matters that are required to be communicated under professional standards, and
Government Auditing Standards.
AUDIT PROCEDURES ‐ COMPLIANCE
As part of obtaining reasonable assurance about whether the basic financial statements are free of
material misstatement, we will perform tests of the Fund's compliance with applicable laws and
regulations and the provisions of contracts and agreements, including grant agreements. However, the
objective of those procedures will not be to provide an opinion on overall compliance and we will not
express such an opinion in our report on compliance issued pursuant to Government Auditing Standards.
Attachment ‐ Page 4
Communications
At the conclusion of the audit engagement, we may provide Management and those charged with
governance a letter stating any significant deficiencies or material weaknesses which may have been
identified by us during the audit and our recommendations designed to help the Fund make
improvements in its internal control structure and operations related to the identified matters discovered in
the financial statement audit. As part of this engagement we will ensure that certain additional matters are
communicated to the appropriate members of the Fund. Such matters include (1) our responsibility under
GAAS; (2) the initial selection of and changes in significant accounting policies and their application; (3)
our independence with respect to the Fund; (4) the process used by Management in formulating
particularly sensitive accounting estimates and the basis for our conclusion regarding the reasonableness
of those estimates; (5) audit adjustments, if any, that could, in our judgment, either individually or in the
aggregate be significant to the financial statements or our report; (6) any disagreements with
Management concerning a financial accounting, reporting or auditing matter that could be significant to
the financial statements; (7) our views about matters that were the subject of Management’s consultation
with other accountants about auditing and accounting matters; (8) major issues that were discussed with
Management in connection with the retention of our services, including, among other matters, any
discussions regarding the application of accounting principles and auditing standards; and (9) serious
difficulties that we encountered in dealing with Management related to the performance of the audit.
OTHER MATTERS
Access to working papers
The working papers and related documentation for the engagement are the property of the Firm and
constitute confidential information. We have a responsibility to retain the documentation for a period of
time to satisfy legal or regulatory requirements for records retention. Except as discussed below, any
requests for access to our working papers will be discussed with you prior to making them available to
requesting parties.
We may be requested to make certain documentation available to regulators, governmental agencies
(e.g., SEC, PCAOB, HUD, DOL, etc.) or their representatives (“Regulators”) pursuant to law or
regulations. If requested, access to the documentation will be provided to the Regulators. The Regulators
may intend to distribute to others, including other governmental agencies, our working papers and related
documentation without our knowledge or express permission. You hereby acknowledge and authorize us
to allow Regulators access to and copies of documentation as requested. In addition, our Firm, as well as
all other major accounting firms, participates in a “peer review” program covering our audit and
accounting practices as required by the American Institute of Certified Public Accountants. This program
requires that once every three years we subject our quality assurance practices to an examination by
another accounting firm. As part of the process, the other firm will review a sample of our work. It is
possible that the work we perform for you may be selected by the other firm for their review. If it is, they
are bound by professional standards to keep all information confidential. If you object to having the work
we do for you reviewed by our peer reviewer, please notify us in writing.
Electronic transmittals
During the course of our engagement, we may need to electronically transmit confidential information to
each other, within the Firm, and to other entities engaged by either party. Although email is an efficient
way to communicate, it is not always a secure means of communication and thus, confidentiality may be
compromised. You agree to the use of email and other electronic methods to transmit and receive
information, including confidential information between the Firm, the Fund and other third party providers
utilized by either party in connection with the engagement.
Attachment ‐ Page 5
Subpoenas
In the event we are requested or authorized by you or required by government regulation, subpoena, or
other legal process to produce our working papers or our personnel as witnesses with respect to our
engagement for you, you will, so long as we are not a party to the proceeding in which the information is
sought, reimburse us for our professional time and expense, as well as the fees and expenses of our
counsel, incurred in responding to such a request at standard billing rates.
TERMS AND CONDITIONS SUPPORTING FEE
The estimated fees set forth in the attached engagement letter are based on anticipated full cooperation
from your personnel, timely delivery of requested audit schedules and supporting information, timely
communication of all significant accounting and financial reporting matters, the assumption that
unexpected circumstances will not be encountered during the audit, as well as working space and clerical
assistance as mutually agreed upon and as is normal and reasonable in the circumstances. We strive to
ensure that we have the right professionals scheduled on each engagement. As a result, sudden Fund
requested scheduling changes or scheduling changes necessitated by the agreed information not being
ready on the agreed upon dates can result in expensive downtime for our professionals. Any last minute
schedule changes that result in downtime for our professionals could result in additional fees. Our
estimated fee does not include assistance in bookkeeping or other accounting services not previously
described. If for any reason the Fund is unable to provide such schedules, information and assistance,
the Firm and the Fund will mutually revise the fee to reflect additional services, if any, required of us to
achieve these objectives.
The estimated fees contemplate that the Fund will provide adequate documentation of its systems and
controls related to significant transaction cycles and audit areas.
In providing our services, we will consult with the Fund with respect to matters of accounting, financial
reporting or other significant business issues as permitted by professional standards. Accordingly, time
necessary to effect a reasonable amount of such consultation is reflected in our fee. However, should a
matter require research, consultation or audit work beyond that amount, the Firm and the Fund will agree
to an appropriate revision in our fee.
The estimated fees are based on auditing and accounting standards effective as of the date of this
engagement letter and known to apply to the Fund at this time, but do not include any time related to the
application of new auditing or accounting standards that impact the Fund for the first time. If new auditing
or accounting standards are issued subsequent to the date of this letter and are effective for the period
under audit, we will estimate the impact of any such standard on the nature, timing and extent of our
planned audit procedures and will communicate with you concerning the scope of the additional
procedures and the estimated fees.
In the event of nonpayment of any invoice rendered by us, we retain the right to (a) suspend the
performance of our services, (b) change the payment conditions under this engagement letter, or (c)
terminate our services. If we elect to suspend our services, such services will not be resumed until your
account is paid. If we elect to terminate our services for nonpayment, the Fund will be obligated to
compensate us for all time expended and reimburse us for all expenses through the date of termination.
This engagement letter sets forth the entire understanding between the Fund and the Firm regarding the
services described herein and supersedes any previous proposals, correspondence, and understandings
whether written or oral. Any subsequent changes to the terms of this letter, other than additional billings,
will be rendered in writing and shall be executed by both parties. Should any portion of this engagement
letter be ruled invalid, it is agreed that such invalidity will not affect any of the remaining portions.
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PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND
MINUTES OF MEETING HELD
MARCH 10, 2014
A meeting of the Board of Trustees was called to order at 9:03AM at Council Chambers,
Palm Beach Gardens, Florida. Those persons present were:
TRUSTEES OTHERS
Rick Rhodes, Chairman Audrey Ross, Administrator
Tom Murphy, Secretary Pedro Herrera, Attorney
Ed Morejon Dan Johnson, Investment Consultant
Martin Cohen Mike Barry, Class Action Attorney
Allan Owens, Finance Director
PUBLIC COMMENTS
N/A
MINUTES
The Board tabled the minutes of the regular meeting held on January 10, 2013 until the
next meeting so that Mr. Cohen had more time to review them.
GRANT & EISNEHOFER PRESENTATION – MIKE BARRY
Mr. Barry introduced himself to the board and explained why he was here today and what
services his firm provides for this board. His firm represents share holders in litigation
and today he has a derivative case to bring forth to the board.
A motion was made by Ed Morejon to hold an executive closed door session
(beginning at 9:11AM). The motion was seconded by Tom Murphy and carried 4-0.
A motion was made by Tom Murphy to conclude the executive closed session
(closing at 9:42AM) and to reopen the regular meeting. The motion was seconded
by Marty Cohen and carried 4-0.
The Trustees had a lengthy discussion on the derivative case that was brought forth to
them today. The case is related to AmTrust, which is held by Dana Advisors.
A motion was made by Ed Morejon to retain Grant & Eisenhofer and to authorize
them to file the section 220 document/records request against AmTrust on behalf of
the Plan. The motion was seconded by Tom Murphy and carried 4-0.
Mr. Barry stated that he will bring back the findings of the 220 document to the board
and then they will go from there in regards to moving ahead with the case or not. In the
meantime the manager, Dana Advisors will need to hold onto at least 100 share in
AmTrust during this process. Mr. Herrera noted that holding onto 1 share is legal, but
not recommended.
A motion was made by Tom Murphy to authorize the Plan’s investment consultant
to send a letter to Dana explaining that they need to hold onto at least 100 shares in
AmTrust due to possible litigation. The motion was seconded by Tom Murphy and
carried 4-0.
2
INVESTMENT MONITOR REPORT: THE BOGDAHN GROUP (DAN
JOHNSON)
Mr. Johnson reviewed the December 31, 2013 quarterly report. He briefly reviewed the
market environment during the quarter and noted that all the indices where up with the
exception of bonds. At the end of the quarter the fund had $63M in assets, which was up
$4M since the end of the last quarter. The total return net of fees for the quarter was
6.72% versus the index at 6.27%, and for the one year to date they are also ahead of the
index net of fees at 20.70% versus 20.68%. Mr. Johnson reviewed all the managers’
performance during the quarter and noted that all the managers outperformed their
index’s except for Fiduciary Management and American Realty. Fiduciary Management
is currently holding onto a lot of cash and Mr. Johnson stated that they will keep an eye
on that.
Mr. Johnson reviewed the February 28, 2014 market update. For the quarter the fund is
up 1.1%, but for the fiscal year to date they are already up 8.1%. Mr. Johnson stated that
there are no recommendations at this time regarding any of the managers, but he did note
that the plan is holding a lot of cash at $850K. Therefore Mr. Johnson would recommend
moving a total of $525K out of cash and into the Templeton and Vanguard accounts.
A motion was made by Ed Morejon to authorize the transfer of $525K from the
plans cash account to be distributed to Templeton ($225K) and Vanguard ($300K).
The motion was seconded by Tom Murphy and carried 5-4.
Mr. Johnson updated the board on ICMA and where they stand with the contract. Mr.
Herrera stated that he has reviewed the ICMA contract and made some minor revisions to
it and then sent it back to ICMA to review and sign off on. He explained that the original
contract had an 8-10 year lock up so Mr. Herrera removed that language. He commented
that he will keep the board posted when he receives more information. The Trustees also
tabled the revised IPG until the ICMA contract is signed.
ATTORNEY REPORT: SUGERMAN & SUSSKIND (PEDRO HERRERA)
Mr. Herrera explained that recently a new law passed that now states that same sex
marriages are now granted in regards to benefits such as pensions and insurances. No
action is needed at this time (information purposes only)
Mr. Herrera stated the SB 246 & HB 509 is still pending up in the Legislative Session
and that he will update the board as more information becomes available.
Lastly Mr. Herrera noted that the Division of Retirement is holding a school from May
12-14, 2014.
ADMINISTRATIVE REPORT: RESOURCE CENTERS (AUDREY ROSS)
DISBURSEMENTS
The Board reviewed the disbursements presented for approval by the Administrator.
A motion was made by Tom Murphy to approve the disbursements as presented by
the Administrator. The motion was seconded by Marty Cohen and carried 4-0.
3
BENEFIT APPROVALS
The Board reviewed the application to enter the DROP for Richard Holder.
A motion was made by Tom Murphy to approve the application to enter the DROP
for Richard Holder. The motion was seconded by Ed Morejon and carried 4-0.
The Board reviewed the 2014 COLA increases for the active DROP members that were
prepared by the actuary.
A motion was made by Tom Murphy to approve the 2014 COLA increases for the
active DROP members as presented. The motion was seconded by Marty Cohen
and carried 3-0. (Mr. Morejon abstained from the vote since he was one of the
members on the COLA list).
Ms. Ross presented the board with the 2014/2015 fiduciary insurance renewal. Ms. Ross
stated that the fee for this year is $25.83 lower that last year. The Trustees’ had a brief
discussion on the type and amount of coverage and asked Ms. Ross to get quotes for
higher coverage next year ($2M & $5M).
Ms. Ross notified the board that she did get in hold of Mr. Zace regarding a refund of his
contributions, but she has not heard anything else since.
PRESENTATION OF THE 9/30/2013 AUDITED FINANIAL STATEMENTS:
CHERY, BEKAERT (JIM BURDICK)
Mr. Burdick welcomed himself back and reviewed the required communications letter.
He noted that all together an unmodified opinion was issued, which is the highest level
that can be issued. There were no deficiencies or material weaknesses found while
performing the audit as well. Mr. Burdick discussed the DROP liability and how it is
being accounted for in this report. Currently the DROP assets are considered a liability to
the plan and then when the member exits the DROP and takes their money out, then that
distribution is deducted from the plan’s DROP liabilities. Mr. Burdick explained that this
board had the same conversation last year regarding the DROP assets and ultimately
decided to continue to do it the same way. Also the Division of Retirement will accept
the report either way, so it is more of a housekeeping thing. Lastly Mr. Martin asked if
the audit should have a footnote reflected somewhere indicating that the board reduced
their assumed rate of return, although it was after September 30, 2013. Mr. Burdick
stated that the change will not have any impact on the numbers or the financials, but he
could add in the footnote if the board wished for.
Mr. Burdick noted that this is only a draft copy of the September 30, 2013 financial
statements that are being presented today and that the board will need to meet again
within a week or two to finalize them.
NEW BUSINESS
The Trustees reviewed the updated service provider contract list and the Sugarman &
Susskind contract. Mr. Rhodes noted that the Sugarman & Susskind contact was signed
in 2008 and the fee was guaranteed through December 31, 2010, and the fee has still
remained the same till this day. The Trustees concurred that they were pleased with their
legal services and do not want to make any changes at this time.
4
Mr. Morejon reviewed the 415 IRS rule and the timing of implementing the self-directed
DROP accounts. He explained that currently the plan has an IRS determination letter
which is good through 2016, and then they will re-file for another letter. Mr. Morejon
wants to know what would happen to the self directed accounts if the IRS was to
implement the 415 IRS rule in between the filings. Mr. Herrera explained that there are
ways to get around the 415 IRS rule, but in the meantime nothing has been approved yet.
Mr. Johnson presented the board with the Bogdahn fee proposal for monitoring the self-
directed DROP accounts. After review with his firm Mr. Johnson thinks the best way to
approach this is by increasing the annual rate altogether to $30K (from $22,500) and they
would guarantee this fee for the next 3 years. This new fee would include all the DROP
accounting and monitoring as well as all the other work they do for the board. Mr.
Johnson explained the Bogdahn Group is a hard dollar fee and by increasing the hard
dollar option, it actually decreased the fee as a percentage of assets. The Trustees
discussed the fee increase and noted that they are happy with the services.
A motion was made by Tom Murphy to approve and accept the Bogdahn fee
increase to $30K per year effective July 1, 2014. The motion was seconded by
Marty Cohen and carried 4-0.
Lastly Ms. Ross stated that for the reminder of 2014 we will move the quarterly meeting
dates (May, August & November 2013) back from 9AM to 1PM.
OLD BUSINESS
Mr. Morejon asked if the Actuarial Valuation report and the share account statements are
available yet. Ms. Ross stated that as of yesterday neither documents where available
yet.
Mr. Murphy stated that 2 members received incorrect benefit statements. Ms. Ross stated
that she will check with the Actuary and get them revised.
Lastly Mr. Morejon wanted confirmation that members are not allowed to withdrawal or
have access to their share or DROP accounts prior to them separating service. Mr.
Herrera confirmed that was correct. Members must be collecting a pension check in
order to have access to their DROP or share accounts.
OTHER BUSINESS
Mr. Rhodes acknowledged that the Division of Retirement has accepted and approved all
of the plans Actuarial Valuation Reports through September 30, 2011.
There being no further business, the meeting adjourned at 12:40PM.
Respectfully submitted,
Tom Murphy, Secretary
CITY OF PALM BEACH GARDENS
FIREFIGHTERS' PENSION FUND
ACTUARIAL VALUATION REPORT
AS OF OCTOBER 1, 2013
CONTRIBUTIONS APPLICABLE TO THE CITY'S
PLAN/FISCAL YEAR ENDING SEPTEMBER 30, 2015
May 2, 2014
Board of Trustees
City of Palm Beach Gardens
Firefighters' Pension Fund
Resource Centers, LLC
4360 Northlake Blvd., Suite 206
Palm Beach Gardens, FL 33410
Re: City of Palm Beach Gardens
Firefighters' Pension Fund
Dear Board:
We are pleased to present to the Board this report of the annual actuarial valuation of the City of
Palm Beach Gardens Firefighters' Pension Fund. The valuation was performed to determine
whether the assets and contributions are sufficient to provide the prescribed benefits and to
develop the appropriate funding requirements for the applicable plan year.
The valuation has been conducted in accordance with generally accepted actuarial principles and
practices, including the applicable Actuarial Standards of Practice as issued by the Actuarial
Standards Board, and reflects laws and regulations issued to date pursuant to the provisions of
Chapters 112, 175, Florida Statutes, as well as applicable federal laws and regulations. In our
opinion, the assumptions used in this valuation, as adopted by the Board of Trustees, represent
reasonable expectations of anticipated plan experience.
In conducting the valuation, we have relied on personnel, plan design, and asset information
supplied by the City of Palm Beach Gardens, financial reports prepared by the custodian bank,
and the actuarial assumptions and methods described in the Actuarial Assumptions section of
this report. While we cannot verify the accuracy of all this information, the supplied information
was reviewed for consistency and reasonableness. As a result of this review, we have no reason
to doubt the substantial accuracy of the information and believe that it has produced appropriate
results. This information, along with any adjustments or modifications, is summarized in various
sections of this report.
13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 · (239) 433-5500 ·Fax (239) 481-0634 · www.foster-foster.com
·~42-L
2
The undersigned is familiar with the immediate and long-term aspects of pension valuations, and
meets the Qualification Standards of the American Academy of Actuaries necessary to render the
actuarial opinions contained herein. All of the sections of this report are considered an integral
part of the actuarial opinions.
To our knowledge, no associate of Foster & Foster, Inc. working on valuations of the program
has any direct financial interest or indirect material interest in the City of Palm Beach Gardens,
nor does anyone at Foster & Foster, Inc. act as a member of the Board of Trustees of the City of
Palm Beach Gardens Firefighters' Pension Fund. Thus, there is no relationship existing that
might affect our capacity to prepare and certify this actuarial report.
If there are any questions, concerns, or comments about any of the items contained in this report,
please contact me at 239-433-5500.
Respectfully submitted,
Foster & Foster, Inc.
By:
DHL/lke
Enclosures
3
4
TABLE OF CONTENTS
Section Title Page
I Introduction
a. Summary of Report 5
b. Changes Since Prior Report 7
c. Comparative Summary of 8
Principal Valuation Results
II Valuation Information
a. Reconciliation and Derivation of the 13
Unfunded Actuarial Accrued Liability
b. Actuarial Assumptions and Methods 14
c. Valuation Notes 16
III Trust Fund 17
IV Member Statistics
a. Statistical Data 22
b. Age and Service Distribution 23
c. Member Reconciliation 24
v Summary of Plan Provisions 25
VI Governmental Accounting Standards 28
Board Disclosure Information
VII Share Plan Reconciliation 31
SUMMARY OF REPORT
The regular annual actuarial valuation of the City of Palm Beach Gardens Firefighters' Pension
Fund, performed as of October 1, 2013, has been completed, and the results are presented in this
Report. The contribution amounts developed in this valuation are applicable to the plan/fiscal
year ended September 30, 2015.
The contribution requirements, compared with amounts developed in the October 1, 2012,
actuarial valuation, are as follows:
Valuation Date
Applicable Plan/Fiscal Year End
Total Required Contribution
% of Total Annual Payroll
Member Contributions (Est.)
% of Total Annual Payroll
City and State Required Contribution
% of Total Annual Payroll
State Contribution 1
% of Total Annual Payroll
Balance from City 1
% of Total Annual Payroll
10/1/2012
9/30/2014
48.97%
6.00%
42.97%
530,988
6.80%
36.17%
10/1/2013
9/30/2015
52.61%
6.00%
46.61%
530,988
6.80%
39.81 %
1 State Contribution shown is an amount based on 6.8% of the October 1, 2013 valuation payroll.
For budgeting purposes, the required Sponsor Contribution (City and State) is 42.97% of
Pensionable Earnings for the fiscal year ending September 30, 2014, and 46.61 % for the fiscal
year ending September 30, 2015. The precise City requirement is the applicable Sponsor
percentage, less State Contributions equal to 6.80% of Pensionable Payroll realized for the
applicable fiscal year.
5
Experience during the last twelve months was more favorable than expected, relative to the
Plan's actuarial assumptions. The primary sources of favorable experience included a 10.1 %
investment return (Actuarial Asset Basis), exceeding the 8.25% assumption, and an average
decrease in Pensionable Compensation of more than 6%. These gains were partially offset by
lower than expected employee turnover.
In spite of the Plan's net favorable experience for the year, funding requirements, when
expressed as a percentage of payroll have increased for the following reasons:
1. A reduction in the payroll growth assumption (as required by Chapter 112, Florida
Statutes) for the purpose of amortizing the Unfunded Actuarial Accrued Liability
(UAAL). This reduction results in an increase to the Principal portion of the
amortization payment.
2. An approximate 12% reduction in Valuation Payroll. This decrease results in an increase
in the required payment toward the UAAL, expressed as a percentage of payroll.
3. A reduction in the investment return assumption from 8.25% to 8.05% (as approved by
the Board at the November 6, 2013 Board Meeting).
The balance of this Report presents additional details of the actuarial valuation and the general
operation of the Fund. The undersigned would be pleased to meet with the Board to discuss the
Report and answer any questions concerning its contents.
Respectfully submitted,
FOSTER & FOSTER, INC.
6
Plan Changes Since Prior Valuation
There were no changes in benefits since the prior valuation.
Actuarial Assumption/Method Changes Since Prior Valuation
• The payroll growth assumption, utilized for amortization of the Unfunded
Actuarial Accrued Liability (UAAL) has been decreased from 4.5% to 2.9% (the
actual ten-year payroll growth as of 10/1/2013). This decrease was made for the
purpose of compliance with Part VII of Chapter 112, Florida Statutes.
Additionally, the following changes in methods and assumptions were made (as approved
by the Board at the November 6, 2013 Meeting):
• The Investment return assumption has been decreased from 8.25% to 8.05%.
Further reductions will be implemented with future valuations according to the
following schedule:
Valuation Date
10/1/2014
10/1/2015
10/1/2016
10/1/2017
Investment Return Assumption
7.85%
7 .65%
7.45%
7.25%
• The amortization period for components of the UAAL established prior to
10/1/2013 are limited to no more than 20 years as of 10/1/2013. Assumption
changes on and after 10/1/2013 will be amortized over 20 years, and Experience
Gains and Losses established on and after 10/1/2013 will be amortized over 10
years.
7
8
COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS
new assumption old assumption old assumption
10/1/2013 10/1/2013 10/1/2012
A. Participant Data
Number Included
Actives 105 105 108
Service Retirees 9 9 7
Beneficiaries 1 1 1
Terminated Vested 3 3 2
Disability Retirees 5 5 5
DROP Retirees 8 8 6
Total 131 131 129
Total Annual Payroll 8,686,040 8,686,040 9,720,044
Payroll Under Assumed Ret. Age 7,808,654 7,808,654 8,909,034
Annual Rate of Payments to:
Service Retirees 676,505 676,505 451,643
Beneficiaries 31,584 31,584 31,584
Terminated Vested 90,766 90,766 71,566
Disability Retirees 118,217 118,217 118,217
DROP Retirees 586,468 586,468 471,287
B. Assets
Actuarial Value 1 56,934,843 56,934,843 48,969,796
Market Value 1 59,994,725 59,994,725 50,720,309
C. Liabilities
Present Value of Benefits
Active Members
Retirement Benefits 54,426,225 52,767,304 56,205,472
Disability Benefits 398,117 388,634 445,806
Death Benefits 206,155 201,387 221,166
Vested Benefits 2,989,602 2,866,554 3,299,360
Refund of Contributions 15,549 15,497 11,751
Service Retirees 10,110,520 9,894,532 6,555,356
Beneficiaries 58,710 58,609 84,607
Terminated Vested 772,068 747,263 613,950
Disability Retirees 1,147,127 1,129,280 1,141,658
DROP Retirees 1 9,705,609 9,509,940 7,976,089
Share Plan Balances 8,078,808 8,078,808 7,175,953
Total 87,908,490 85,657,808 83,731,168
9
new assumption old assumption old assumption
C. Liabilities -(Continued) 10/1/2013 10/1/2013 10/1/2012
Present Value of Future Salaries 51,038,562 50,622,675 58,338,596
Normal Cost (Projected Unit Credit)
Service Ret 1,903,639 1,841,568 2,039,700
Dis Benefits 23,935 23,375 26,623
Death Benefits 10,299 10,057 11,022
Vest Benefits 163,922 157,021 182,747
Refunds 4,332 4,318 3,636
Total Normal Cost 2,106,127 2,036,339 2,263,728
Present Value of Future Normal Costs 14,171,585 13,620,896 15,612,111
Actuarial Accrued Liability
Service Ret 41,277,368 40,125,910 41,759,767
Dis Benefits 282,930 276,724 314,680
Death Benefits 147,614 144,509 155,948
Vest Benefits 2,148,869 2,064,071 2,336,339
Refunds 7,282 7,266 4,710
Inactives 1 21,794,034 21,339,624 16,371,660
Share Plan Balances 8,078,808 8,078,808 7,175,953
Total Actuarial Accrued Liability 73,736,905 72,036,912 68,119,057
Unfunded Actuarial Accrued Liability (UAAL) 16,802,062 15,102,069 19,149,261
D. Actuarial Present Value of Accrued Benefits
Vested Accrued Benefits
Inactives 1 21,794,034 21,339,624 16,371,660
Share Plan Balances 8,078,808 8,078,808 7,175,953
Actives 25,388,520 24,571,806 23,945,495
Member Contributions 5,916,021 5,916,021 5,844,494
Total 61,177,383 59,906,259 53,337,602
Non-vested Accrued Benefits 1,942,839 1,890,863 1,997,570
Total Present Value Accrued Benefits 63,120,222 61,797,122 55,335,172
Increase (Decrease) in Present Value of
Accrued Benefits Attributable to:
Plan Amendments 0 0
Assumption Changes 1,323,100 0
New Accrued Benefits 0 3,576,852
Benefits Paid 0 (1,613,497)
Interest 0 4,498,595
Other 0 0
Total: 1,323,100 6,461,950
Valuation Date
Applicable to the Fiscal Year Ending
E. Pension Cost
Normal Cost (with interest)
% of Total Annual Payroll 2
Administrative Expenses (with interest)
% of Total Annual Payroll 2
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 20 years as of 10/1/13
(with interest)
% of Total Annual Payroll 2
Total Required Contribution
% of Total Annual Payroll 2
Expected Member Contributions
% of Total Annual Payroll 2
Expected City and State Contrib.
% of Total Annual Payroll 2
F. Past Contributions
Plan Year Ending:
Total Required Contribution
City and State Requirement
Actual Contributions Made:
Members
City
State
Total
G. Actuarial Gain (Loss) 3,549,892
new assumption
10/1/2013
9/30/2015
28.06
1.33
23.22
52.61
6.00
46.61
9/30/2013
3,940,827
3,443,143
497,684
3,347,645
564,042 3
4,409,371
old assumption
10/1/2013
9/30/2015
27.15
1.33
21.71
50.19
6.00
44.19
1 The asset values and liabilities for DROP Members include accumulated DROP
Balances as of 9/30/2013 and 9/30/2012.
2 Contributions developed as of 10/1/2013 are expressed as a percentage of Payroll
Under Assumed Retirement Age at 10/1/2013 of $7,808,654.
3 "Frozen" under the traditional interpretation of Chapter 99-1, Florida Statutes.
old assumption
10/1/2012
9/30/2014
26.46
1.13
21.38
48.97
6.00
42.97
10
H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Accrued Liability
as of:
2013
2014
2015
2020
2025
2033
Projected Unfunded
Accrued Liability
16,802,062
16,271,038
15,642,643
10,680,748
5,089,040
0
I. (i) 3 Year Comparison of Actual and Assumed Increases in Pensionable Compensation
Year Ended
Year Ended
Year Ended
9/30/2013
9/30/2012
9/30/2011
Actual
-6.2%
2.7%
7.2%
(ii) 3 Year Comparison of Investment Return on Actuarial Value
Year Ended
Year Ended
Year Ended
(iii) Average Annual Payroll Growth
(a) Payroll as of:
(b) Total Increase
(c) Number of Years
( d) Average Annual Rate
9/30/2013
9/30/2012
9/30/2011
Actual
10.1%
7.2%
1.1 %
10/1/2013
10/1/2003
Assumed
5.1%
5.1% 1
5.1%
Assumed
8.25%
8.25%
8.25%
$8,686,040
6,541,837
32.8%
10
2.9%
1 The reported Actual Increase in Pensionable Compensation for fiscal 2012 is based on
estimated pay utilized for purposes of the September 12, 2012 Actuarial Impact Statement.
11
STATEMENT BY ENROLLED ACTUARY
This actuarial valuation was prepared and completed by me or under my direct supervision, and I
acknowledge responsibility for the results. To the best of my knowledge, the results are
complete and accurate, and in my opinion, the techniques and assumptions used are reasonable
and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. There is no
benefit or expense to be provided by the plan and/or paid from the plan's assets for which
liabilities or current costs have not been established or otherwise taken into account in the
valuation. All known events or trends which may require a material increase in plan costs or
required contribution rates have been taken into account in the valuation.
Please let us know when the report is approved by the Board and unless otherwise directed we
will provide copies of the report to the following offices to comply with Chapter 112 Florida
Statutes:
Mr. Keith Brinkman
Bureau of Local
Retirement Systems
Post Office Box 9000
Tallahassee, FL 32315-9000
Ms. Sarah Carr
Municipal Police and Fire
Pension Trust Funds
Division of Retirement
Post Office Box 3010
Tallahassee, FL 32315-3010
12
13
RECONCILIATION OF UNFUNDED ACTUARIAL ACCRUED LIABILITIES
(1) Unfunded Actuarial Accrued Liability $19' 149 ,261
as of October 1, 2012
(2) City and State Normal Cost Applicable for the Year 1,729,186
(3) Expected Administrative Expenses for the Year 96,825
(4) Interest on (1 ), (2), and (3) 1,726,466
(5) Sponsor Contributions to the System during the 3,911,687
year ending September 30, 2013
(6) Interest on ( 5) 138,090
(7) Expected Unfunded Accrued Liability as of October 1, 2013 18,651,961
(1)+(2)+(3)+(4)-(5)-(6)
(8) New UAAL due to Experience (Gain)/Loss (3,549,892)
(9) New UAAL due to Reduction in Investment Return Assumption 1,699,993
(10) UAAL as of October 1, 2013 16,802,062
Date Years 10/1/2013 Amortization
Established Remaining Amount Amount
Prior Experience 10/1/1993 10 13,208,579 1,629,425
Benefit Change 10/1/2002 19 2,367,502 186,636
Experience Loss 10/1/2006 20 753,294 57,589
Assum/Method Change 10/1/2006 20 (2,364,211) (180,743)
Experience Gain 10/1/2007 20 (317,241) (24,253)
Experience Loss 10/1/2008 20 1,500,881 114,742
Experience Loss 10/1/2009 20 941,610 71,986
Experience Loss 1011/2010 20 492,646 37,663
Experience Loss 10/1/2011 20 4,242,169 324,312
Benefit Change 10/1/2011 20 (2,473,617) (189,107)
Experience Loss 10/1/2012 20 300,349 22,962
Experience Gain 10/1/2013 IO (3,549,892) (437,919)
Assumption Change 10/1/2013 20 1,699,993 129,964
16,802,062 1,743,257
ACTUARIAL ASSUMPTIONS AND METHODS
Mortality Rates
Interest Rate
Retirement Rates
Actuarial Value of Assets
Cost of Living Adjustments
Funding Method
Salary Increases *
RP-2000 Table, sex distinct, without projection.
8.05% (previously 8.25%) per year compounded
annually, net of investment related expenses.
Probability of
Age Retirement
50 5.0%
51 5.0
52 50.0
53 10.0
54 10.0
55 100.0
For those Members who attain 25 years of Credited
Service, regardless of Age, the probability of
retirement is 100%.
The Actuarial Value of Assets is calculated by
recognizing 25% of the difference between the
Market Value of Assets and the expected Market
Value of Assets.
1.0% increase for members who are Age 53, 2.0%
increase for members who are Age 54, and 1.5%
increase for members who are Age 5 5 and greater.
Projected Unit Credit Cost Method.
Age Increase
20 3.7%
30 1.1
40 0.7
50 0.2
60 0.0
* Expected increase in salary in addition to 4.5% inflation assumption.
14
Administrative Expenses
Payroll Growth Assumption
Final Pay Load
Termination Rates
Disability Rates
$99,667
2.9% (previously 4.5%) for amortization of the
Unfunded Actuarial Accrued Liability.
For Members hired prior to October 1, 2011, active
liabilities are increased by 3 % to account for
assumed payments of unused sick and annual leave
time. Members protected from benefit changes set
forth in Ordinance 23, 2012 are valued with a 4.5%
final salary load. Members hired on and after
October 1, 2011 are valued with no final pay load.
Age
All Ages
25
30
35
40
45
50
55
Age
20
25
30
35
40
45
50
% Separating from
Years Employment Within the
of Service Next Year
0 15.0%
1 10.0
2 9.0
3 8.0
4 7.0
5 & Over 7.0
5.9
4.4
3.0
2.1
1.7
1.0
% Become Disabled
within Next Year
0.0545%
0.0545
0.0580
0.0895
0.1210
0.2750
0.4290
It is assumed that 75% of disablements and active
Member deaths are service related.
15
VALUATION NOTES
Total Annual Payroll is the projected annual rate of pay as of the valuation date of all covered
Members.
Present Value of Benefits is the single sum value on the valuation date of all future benefits to be
paid to current Members, Retirees, Beneficiaries, Disability Retirees and Vested
Terminations.
Normal (Current Year's) Cost is determined for each participant as the present value of the
increase in the accrued benefit for the plan year, utilizing projected salary.
Projected Unit Credit Actuarial Cost Method (Level Percent of Compensation) is the method
used to determine required contributions under the Plan. The use of this method involves the
systematic funding of the Normal Cost (described above) and the Unfunded Accrued (Past
Service) Liability. The actuarial accrued liability is the present value of accrued benefits,
utilizing projected salary for active Plan Participants.
Unfunded Actuarial Accrued Liability (UAAL) is the difference between the actuarial accrued
liability (described above) and the actuarial value of assets. Under the Projected Unit Credit
Actuarial Cost Method, an actuarial gain or loss, based on actual versus expected U AAL, is
determined in conjunction with each valuation of the plan.
Total Required Contribution is equal to the Normal Cost plus an amount sufficient to amortize
the Unfunded Accrued Liability over no more than 30 years. The required amount is adjusted
for interest according to the timing of contributions during the year.
16
ASSETS
Cash and Cash Equivalents:
Money Market
Total Cash and Equivalents
Receivable:
City Contributions in Transit
State Contributions
Accrued Income
Total Receivable
Investments:
Fixed Income
Stocks
Mutual Funds:
Fixed Income
Equity
Pooled/Common/Commingled Funds:
Real Estate
Total Investments
TOT AL ASSETS
LIABILITIES AND NET ASSETS
Liabilities:
Payable:
Unpaid Investment Expenses
Unpaid Administrative Expenses
Total Liabilities
Net Assets, including DROP Account Balances
TOTAL LIABILITIES AND NET ASSETS
BALANCE SHEET
September 30, 2013
17
MARKET VALUE
2, 176,592.33
2, 176,592.33
836,911.25
750,072.76
104,266.04
1,691,250.05
12,000,452.61
20,348,405 .15
2,903,577.47
16,822,125.97
4, 109,273 .95
56,183,835.15
60,051,677.53
48,338.20
8,614.50
56,952.70
59,994,724.83
60,051,677.53
CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
September 30, 2013
Contributions:
Member
City
State
Total Contributions
Earnings from Investments
Interest & Dividends
Net Realized Gain (Loss)
Unrealized Gain (Loss)
Total Earnings and Investment Gains
Expenses:
Investment Related 1
Administrative
Total Expenses
Distributions to Members:
Benefit Payments
Lump Sum DROP Distributions
Lump Sum Share Distributions
Termination Payments
Total Distributions
Change in Net Assets for the Year
Net Assets Beginning of the Year
Net Assets End of the Year
Market Value Basis
REVENUES
EXPENDITURES
497,683.94
3,347,645.00
750,072.76
1,293,617.23
3,400,552.48
1,932,910.36
234,901.52
99,667.02
657,210.14
805, 761.63
150,525.56
0.00
1 Investment Related expenses include investment advisory, custodial and performance monitoring fees.
18
4,595,401. 70
6,627,080.07
334,568.54
1,613,497.33
9,274,415.90
50, 720,308.93
59,994,724.83
ACTUARIAL ASSET VALUATION
September 30, 2013
Actuarial Assets for funding purposes are developed by recognizing the total actuarial investment gain or loss for
each Plan Year over a four year period. In the first year, 25% of the gain or loss is recognized. In the second year
50%, in the third year 75%, and in the fomih year 100% of the gain or loss is recognized . The actuarial investment
gain or loss is defined as the actual return on investments minus the actuarial assumed investment return. Actuarial
Assets shall not be less than 80% nor greater than 120% of Market Value of Assets.
Gains/(Losses} Not Yet Recognized
Plan Year Amounts Not Yet Recognized by Valuation Year
Ending Gain/(Loss) 2013 2014
09/30/2010 ( 407 ,459) 0 0
09/30/2011 (3,099,811) (774,953) 0
09/30/2012 4 ,536,378 2,268, 189 1,134,094
09/30/2013 2,088,861 1,566,646 1,044,430
Total 3,059,882 2,178 ,524
Development of Investment Gain/(Loss}
Market Value of Assets, including DROP & Share Balances, 09/30/2012
Contributions Less Benefit Payments & Admin Expenses
Expected Investment Earnings *
Actual Net Investment Earnings
0913012013 Actuarial Investment Gain/(Loss)
*Expected Investment Earnings= 0.0825 * (50,720,309 + 0.5 * 2,882 ,237)
Development of Actuarial Value of Assets
(1) Market Value of Assets, including DROP & Share Balances, 09/30/2013
(2) Gains/(Losses) Not Y et Recognized
(3) Actuarial Value of Assets, 09/30/2013 , (1) -(2)
(A) 09/30/2012 Actuarial Assets, including DROP & Share Balances:
(I) Net Investment Income:
1 . Interest and Dividends
2. Realized Gains (Losses)
3. Change in Actuarial Value
4. Investment Expenses
Total
(B) 09/30/2013 Actuarial Assets, including DROP & Share Balances:
Actuarial Assets Rate of Return= 21/(A+B-I):
Market Value of Assets Rate of Return:
10/01/2013 Limited Actuarial Assets:
2015
0
0
0
522,215
522,215
50,720,309
2,882,237
4 ,303,318
6,392,179
2 ,088 ,861
59 ,994,725
3 ,059,882
56,934,843
48,969,796
1,293,617
3,400,552
623,541
(234,902)
5 ,082,810
56,934,843
10.1%
12.3%
56,934,843
2016
19
0
0
0
0
0
CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
September 30, 2013
Contributions:
Member
City
State
Total Contributions
Earnings from Investments
Interest & Dividends
Net Realized Gain (Loss)
Change in Actuarial Value
Total Earnings and Investment Gains
Expenses:
Investment Related 1
Administrative
Total Expenses
Distributions to Members:
Benefit Payments
Lump Sum DROP Distributions
Lump Sum Share Distributions
Termination Payments
Total Distributions
Change in Net Assets for the Year
Net Assets Beginning of the Year
Net Assets End of the Year2
Actuarial Asset Basis
REVENUES
EXPENDITURES
497,683.94
3,347,645.00
750,072.76
1,293,617.23
3,400,552.48
623 ,541.36
234,901.52
99 ,667.02
657,210.14
805,761.63
150,525.56
0.00
'Investment Related expenses include investment advisory, custodial and performance monitoring fees.
2 Net Assets may be limited for actuarial consideration.
20
4,595,401. 70
5,317,711.07
334,568.54
1,613,497.33
7,965 ,046.90
48 ,969, 795 .93
56,934,842.83
09/30/2012 Balance
Plus Additions
Investment Return Earned
Less Distributions
09/30/2013 Balance
DEFERRED RETIREMENT OPTION PLAN ACTIVITY
October 1, 2012 to September 30, 2013
945,148.36
710,468.86
21,549.61
(805, 761.63)
871,405.20
21
22
STATISTICAL DATA
10/1/2010 10/1/2011 10/1/2012 10/1/2013
Number 114 111 108 105
Average Current Age 40.9 41.8 42.0 42.6
Average Age at Employment 28.1 28.5 28.3 28.5
Average Past Service 12.8 13.3 13.7 14.1
Average Annual Salary $86,824 $89,150 $90 ,000 $82,724
23
AGE AND SERVICE DISTRIBUTION
PAST SERVICE
AGE 0 1 2 3 4 5-9 10 -14 15-19 20-24 25-29 30+ Total
15 -19 0 0 0 0 0 0 0 0 0 0 0 0
20 -24 0 1 0 0 0 0 0 0 0 0 0
25 -29 0 1 0 0 0 0 0 0 0 0 0
30 -34 0 0 0 0 0 9 7 0 0 0 0 16
35 -39 2 1 0 0 0 6 7 2 0 0 0 18
40 -44 0 0 0 0 0 6 8 6 1 0 0 21
45 -49 0 0 0 0 0 4 7 11 6 0 0 28
50 -54 0 0 0 0 0 0 8 5 2 0 16
55 -59 0 0 0 0 0 0 0 0 3 0 0 3
60 -64 0 0 1 0 0 0 0 0 0 0 0 1
65+ 0 0 0 0 0 0 0 0 0 0 0 0
Total 2 3 1 0 0 25 30 27 15 2 0 105
VALUATION PARTICIPANT RECONCILIATION
1. Active lives
a. Number in prior valuation 10/1/12
b. Terminations
i. Vested (partial or full) with deferred
benefits
ii. Non-vested or full lump sum distribution
received
c. Deaths
i. Beneficiary receiving benefits
ii. No future benefits payable
d. Disabled
e. Retired
f. DROP
g. Continuing participants
h. New entrants
i. Total active life participants in valuation
2. Non-Active lives (including beneficiaries receiving benefits)
Service
Retirees,
Vested Receiving Receiving
Receiving Death Disability
Benefits Benefits Benefits
a. Number prior 7 1 5
valuation
b. In 2 0 0
c. Out 0 0 0
d. Number current 9 1 5
valuation
Vested
Deferred
2
1
0
3
108
1
0
0
0
0
0
4
103
2
105
DROP
6
4
2
8
24
Total
21
7
2
26
Eligibility
Credited Service
Average Final Compensation
Member Contributions
City and State Contributions
Normal Retirement
Date
Benefit
Form of Benefit
Early Retirement
Eligibility
Benefit
SUMMARY OF PLAN PROVISIONS
(Through Ordinance 2, 2013)
Full-time certified Firefighters.
Total years and fractional parts of years of
employment with the City as a Firefighter while
making Member contributions.
Total compensation, excluding overtime and
payments for unused accrued sick and annual leave
for salary earned after September 13, 2012.
Average Salary for the 5 best years of the 10 years
immediately preceding retirement or termination.
6.0% of Salary.
Remaining amount required in order to pay current
costs and amortize unfunded past service cost, if
any, as provided in Part VII, Chapter 112, F.S.
Earlier of: 1) Age 52 with 10 years of Credited
Service, or 2) attainment of 25 years of Credited
Service, regardless of Age.
3.0% of Average Final Compensation times
Credited Service, not to exceed 75% of Average
Final Compensation.
Ten Year Certain and Life Annuity
(options available).
Age 50 with 10 years of Credited Service.
Accrued benefit, reduced 3. 0% per year that the
benefit commencement date precedes age 52.
25
Vesting
Schedule
Benefit Amount
Disability
Eligibility
Service Incurred
Non-Service Incurred
Exclusions
Benefit
Service Incurred
Non-Service Incurred
Duration
Death Benefits
10 or more years of
Credited Service
Less than 10 years of
Credited Service
25% after 5 years of Credited Service, then 15% for
each additional year until 100% after 10 years of
Credited Service.
Member will receive the vested portion of his (her)
accrued benefit payable at age 50 (reduced) or age
52.
Covered from Date of Employment.
10 years of Credited Service.
Disability resulting from use of drugs, illegal
participation in riots, service in military, etc.
60% of Average Final Compensation, but not less
than 2.0% of Average Final Compensation times
Credited Service.
2.5% of Average Final Compensation times
Credited Service.
Payable for life (with 120 payments guaranteed) or
until recovery (as determined by the Board).
Optional forms of payment are available.
Monthly accrued benefit payable to designated
beneficiary for 10 years at otherwise Early
(reduced) or Normal (unreduced) Retirement
Date.
Refund of Member contributions.
26
Post-Retirement
Cost of Living Adjustment
Eligibility
Amount
Deferred Retirement Option Plan
Eligibility
Participation
Rate of Return
Distribution
Chapter 175/185 Share Accounts
Allocation
Investment Earnings
Vesting Schedule
Distribution
Benefits payable to beneficiary in accordance with
option selected at retirement.
Normal and Early Retirees and Beneficiaries
(including Vested Terminated Retirees). COLA is
not payable to Disability Retirees.
1.0% increase for members who are Age 53 , 2.0%
increase for members who are Age 54, and 1.5%
increase for members who are Age 55 and greater.
Satisfaction of Normal Retirement requirements.
Maximum participation period of 60 months .
At the Member 's option, a fixed rate , actual rate of
investment return for the Plan, or returns generated
by self-directed accounts.
Cash lump sum (options available) at termination of
employment.
Ordinance 27 , 1998 established a Share Plan for all
Active Members. Premium tax monies received in
excess of the base amounts, less 6.8% of salary, is
allocated annually to each individual Share Account
based on Credited Service, determined as of
September 30.
Net rate of investment return realized by the Plan
for the preceding Plan Year.
Active Members who terminate employment with
less than 5 years of Credited Service forfeit their
Share.
Active Members with 5 or more years of Credited
Service will be paid a lump sum upon separation
from service.
27
Actuarial
Valuation
Date
10 /01/13
10 /01/12
10/01/11
10/01/10
10/01/09
DISCLOSURE INFORMATION PER STATEMENT NO. 25 OF THE
GOVERNMENTAL ACCOUNTING STANDARDS BOARD
The schedule provided below has been prepared in accordance with the requirements
of paragraph 37 of Statement No. 25 of the Governmental Accounting Standards Board.
SCHEDULE OF FUNDING PROGRESS
Actuarial
Accrued
Actuarial Liability Unfunded
Value of (AAL) AAL Funded Covered
Assets -Projected Unit Credit (UAAL) Ratio Payroll
(a) (b) (b-a) (alb) (c)
56,934,843 73,736,905 16,802,062 77 .2% 8,686,040
48,969,796 68, 119,057 19, 149,261 71.9% 9,720,044
35,152,000 57,098,000 21,946,000 61.6% 10,576,000
31,110,000 49,208,000 18,098,000 63.2% 10,072,000
26,484,000 44,358,000 17,874,000 59.7% 9,994,000
The schedule provided below has been prepared in accordance with the requirements
of paragraph 38 of Statement No . 25 of the Governmental Accounting Standards Board.
SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER AND OTHER CONTRIBUTING ENTITIES
Year Annual
Ended Required City State Percentage
September 30 Contribution Contribution Contribution I Contributed
2013 3,443,143 3,347,645 564,042 113.6%
2012 3,634,796 3,974,487 188,039 114.5%
2011 3,942,436 3,745,497 196,939 100.0%
2010 3,751,350 3,550,238 201,112 100 .0%
2009 3,381,790 3,180,731 201,059 100.0%
1 State Contribuiton shown reflects 2% of Pensionable Payroll through fiscal 2012. For the fiscal year
ended September 30, 2013, the State Contribution is 6.8% of Pensionable Payroll for that year.
UAALas
a% of
Covered
Payroll
((b-a)/c)
193.4%
197.0%
207.5%
179.7%
178 .8%
1:0
00
DISCLOSURE INFORMATION PER STATEMENT NO. 27 OF THE
GOVERNMENTAL ACCOUNTING STANDARDS BOARD
ANNUAL PENSION COSTS AND RELATED INFORMATION
Contribution rates as of 9/30/13
City and State
Plan Members
Actuarially Determined Contribution
(City and State)
Contributions made
Actuarial valuation date
Actuarial cost method
41.51%
6.00%
3,443,143
3 ,911,687
10/112011
Projected Unit Credit
Amortization method Level Percentage of Pay , Closed
Remaining amortization period
Asset valuation method
Actuarial assumptions (as of 10/1/2011):
Investment rate of return
Projected salary increase *
* Includes inflation at
Post Retirement COLA
25 years (as of 101112011)
4 Year Smooth
8 .25%
4 .5% -8.2%
4.5%
Age 53 -1 %
Age 54 -2%
Age 55 and later -3%
THREE YEAR TREND INFORMATION
Annual Percentage
Year Pension Cost of APC
Ending (APC) Contributed
9/30/13 3 ,430,813 114.0%
9/30/12 3,634,796 114.5%
9/30/11 3 ,942 ,436 100.0%
Net
Pension
Obligation
(1 ,008 ,604)
(527 ,730)
0
29
DISCLOSURE INFORMATION PER STATEMENT NO. 27 OF THE
GOVERNMENTAL ACCOUNTING STANDARDS BOARD
DEVELOPMENT OF NET PENSION OBLIGATION (NPO)
This municipal Defined Benefit Plan has been subject to the minimum funding
standards since the adoption of the "Florida Protection of Public Employee
Retirement Benefits Act" (Part VII of Chapter 112, Florida Statutes) in 1980.
Accordingly, the sponsor has funded the actuarially determined required contributions
for all years from October 1, 1987, through the transition date, October 1, 1997.
Thus, the NPO on October 1, 1997, is 0.
The development of the Net Pension Obligation to date is as follows:
Actuarially Determined
Contribution (A)
Interest on NPO
Adjustment to (A)
Annual Pension Cost
Contributions Made
Increase in NPO
NPO Beginning of Year
NPO End of Year (527,730)
9/30/13
3,443,143
(43,538)
31,208
3,430,813
3,911,687
(480,874)
(527,730)
(1,008,604)
30
9/30/2012 Balance
Plus Additions
Investment Return Earned
Less Distributions
Less Expenses
9/30/2013 Balance
SHARE PLAN RECONCILIATION
October 1, 2012 to September 30, 2013
31
7,175,953.18
186,030.96
913,498.85
( 150,525 .56)
(46,149.34)
8,078,808.09
PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND
MINUTES OF MEETING HELD
JANUARY 13, 2014
A meeting of the Board of Trustees was called to order at 9:03AM at Council Chambers,
Palm Beach Gardens, Florida. Those persons present were:
TRUSTEES OTHERS
Rick Rhodes, Chairman Scott Baur, Administrator
Mark Joyce, Vice Chair Audrey Ross Administrator
Tom Murphy, Secretary Dan Johnson, Investment Consultant
Ed Morejon Pedro Herrera, Attorney
Martin Cohen Fernando deAguero, ICMA
Steven Feigelis, ICMA
Cary Scaglione, ICMA
PUBLIC COMMENTS
N/A
MINUTES
The Board reviewed the minutes of the regular meeting held on November 6, 2013.
A motion was made by Ed Morejon to approve the minutes of the November 6, 2013
regular meeting as amended. The motion was seconded by Tom Murphy and
carried 5-0.
SELECTION OF CHAIRMAN, VICE CHAIR & SECRETARY
Ms. Ross stated that the board needs to select a Chair, Vice Chair, and Secretary
according to their policy.
A motion was made by Ed Morejon to nominate Rick Rhodes as Chair. The motion
was seconded by Tom Murphy and carried 5-0.
Mr. Rhodes accepted the nomination as Chair.
A motion was made by Mark Joyce to elect Rick Rhodes as Chair. The motion was
seconded by Tom Murphy and carried 5-0.
A motion was made by Tom Murphy to nominate Martin Cohen as Vice Chair. The
motion was seconded by Mark Joyce and carried 5-0.
Mr. Cohen accepted the nomination as Vice Chair.
A motion was made by Tom Murphy to elect Martin Cohen as Vice Chair. The
motion was seconded by Mark Joyce and carried 5-0.
A motion was made by Ed Morejon to nominate Tom Murphy as Secretary. The
motion was seconded by Mark Joyce and carried 5-0.
Mr. Murphy accepted the nomination as Secretary.
2
A motion was made by Mark Joyce to elect Tom Murphy as Secretary. The motion
was seconded by Ed Morejon and carried 5-0.
ADMINISTRATIVE REPORT: RESOURCE CENTERS (AUDREY ROSS &
SCOTT BAUR)
DISBURSEMENTS
The Board reviewed the disbursements presented for approval by the Administrator.
A motion was made by Martin Cohen to approve the disbursements as presented by
the Administrator. The motion was seconded by Ed Morejon and carried 5-0.
BENEFIT APPROVALS
The Board reviewed the application for distribution of Share Account (final payout) for
Glen Aitken and the application to enter the DROP for Michael Dunaway.
A motion was made by Tom Murphy to approve the application for final
distribution of Share account for Glen Aitken and the application to enter the
DROP for Michael Dunaway. The motion was seconded by Mark Joyce and carried
5-0.
The Board reviewed the 2014 COLA increase for the retirees. The board asked the
Actuary to prepare the same kind of list for the active DROP members as well for
approval at the next meeting.
A motion was made by Ed Morejon to approve the 2014 COLA increases for the
retirees effective 1/1/2014. The motion was seconded by Mark Joyce and carried 5-
0.
Ms. Ross noted that Mr. Cohen has a conflict with the May and November 2014 meetings
dates. Therefore those dates will be rescheduled and Ms. Ross will notify the board as
soon as possible.
ICMA PRESENTATION: FERNANDO DEAGUERO, STEVEN FEIGELIS &
CARY SCAGLIONE
Mr. deAguero explained that ICMA is here today to help the board with a self directed
DROP account as an alternative for their DROP investments. He noted that the City also
uses ICMA for their 457 account. Mr. deAguero reviewed ICMA as a company and
stated that they were founded in 1972 and they currently have a 96.7% client retention
rate. ICMA is non-profit organization with close to $50B in assets. ICMA administers
over 2,100 defined contribution plans and over 4,900 457 plans, and they also have quite
a few DROP plans that they administer locally as well. Mr. dAguero introduced Mr.
Feigelis and stated that he is ICMA’s retirement specialist. Mr. Feigilis will be the one
who will help the plan’s administrator get set up on their computer program, EZ Link.
He explained that this software will allow the plan administrator to set up new DROP
members and also choose their investments. Mr. Feiglis will also be assisting with the
transition and he also puts on educational seminars for the members once the transition is
complete. Mr. deAguero reviewed the products that ICMA invests in and noted that most
of these investments can be traded daily, except for the few that have restrictions. The
pension board will work with their consultant and ICMA to narrow down the investment
list to a couple of options to offer the members, and then from there the board would
3
create their own policy regarding distributions, etc. Mr. deArgues reviewed the
transition process and stated that the entire process takes about 90 days from start to
finish. The Trustees discussed the fee with ICMA and asked if they would consider
giving them a discount since ICMA would be the manager for both the Pension Plan and
the 457 Account with the City of Palm Beach Gardens. Mr. deArgues stated that they
could not offer a discount to the ongoing monthly fee at this time because they are two
totally separate accounts with different assets, but ICMA will not charge the pension
board the start up admin fee because of the relationship (the start-up admin fee is 55 basis
points). The proposed ICMA fee is 29 basis points for the stable market value fund and
then each investment has their own fee built into their stock price.
The Trustees discussed the IRS’s outlook on DROP accounts and if ICMA would tie into
that “variable account” situation. Mr. Herrera stated that from a legal standpoint the IRS
has not passed anything in regards to the variable rate on DROP accounts versus the fixed
rate, and what is consider a defined contribution account versus a defined benefit
account. Although with ICMA there are so many different investment options that they
offer that they can deal with the IRS situation in the future if it was to ever come forth,
but in the meantime the plan has a qualified IRS determination letter as well. Lastly the
Trustees asked ICMA if they would consider offering the same service to members on
their 175 (Share) account. Mr. deArgues stated that ICMA could also administer the
Share accounts as well, but it would be a separate account. The Trustees noted that they
wanted to deal with setting up the DROP accounts first before they move on with the
Share accounts.
BOARD DISCUSSION:
The Trustees had a lengthly discussion on the ICMA presentation and also what steps
they need to take to move forward. Mr. Herrera confirmed with the Trustees that if the
board where to hire ICMA, then they will be replacing the plans current money market
option.
A motion was made by Ed Morejon to hire ICMA to administer the self-directed
DROP accounts and to authorize the Plan’s Attorney to review the ICMA contract.
The motion was seconded by Mark Joyce and carried 5-0.
Mr. Johnson reviewed the process from there. He stated that he will work with ICMA to
come up with a list of investments, he will prepare a draft IPG, and he will also get a
written fee proposal from Bogdahn reflecting the additional cost to administer and report
on the ICMA accounts. Ms. Ross stated that she will also check with her firm to see if
there will be any additional cost on their end as well. Mr. Johnson stated that after all the
contracts are signed between the board and ICMA, then they can start working on putting
together a policy surrounding the administration of the self-directed DROP accounts.
INVESTMENT MONITOR REPORT: THE BOGDAHN GROUP (DAN
JOHNSON)
Mr. Johnson reviewed the December 31, 2014 flash performance report. Fiscal year to
date the fund is up 6.6%, which was a gain of $3.8M for the quarter. He explained that
the market continues to be in a positive rebound and therefore all the managers
outperformed their index for the quarter. Mr. Johnson stated that he will have the full
December 31, 2014 quarterly report at the next meeting.
4
Mr. Johnson reviewed the revised investment policy guidelines (IPG). He noted the
changes that were made including the change to the plans assumed rate of return. The
board had a brief discussion on the assumption rate and Mr. Cohen commented that he
does not think that 7.75% is a reasonable rate.
A motion was made by Tom Murphy to approve and accept the revised investment
policy guidelines as presented. The motion was seconded by Mark Joyce and
carried 5-0.
Mr. Brown explained that the Templeton Global Bond Mutual fund account has launched
a new share class. The new R6 shares (retirement class) are exactly the same underlying
fund as what is currently in the portfolio, however, the R6 share class is offered at a
lower cost. Mr. Brown stated that he has no objection to this share class transfer because
there are no costs associated with the transfer, it has the same benefits of the share class
that we are currently in, and the new share class will actually save the plan some money.
ATTORNEY REPORT: SUGERMAN & SUSSKIND (BOB SUGARMAN)
Mr. Herrera reminded the Trustees of the upcoming continuing education programs for
the Trustees and also of the Division of Retirement school in May.
OLD BUSINESS
The board reviewed the revised COLA example from the Actuary that will be
incorporated into the Summary Plan Description (SPD). The Trustees concurred that the
example was readable and that they can move forward with the SPD.
A motion was made by Martin Cohen to approve and accept the revised summary
plan description as presented with the revised COLA example. The motion was
seconded by Tom Murphy and carried 5-0.
NEW BUSINESS
Ms. Ross presented that board with the September 30, 2013 audit engagement letter from
Cherry, Bekaert (CB). She noted that CB did propose a fee increase from $13,750 to
$14,050. The Trustees discussed the fee increase and noted that it was too late to go out
for an RFP at this time.
A motion was made by Martin Cohen to approve and accept the September 30, 2013
audit engagement letter with the fee increase to $14,050. The motion was seconded
by Mark Joyce and carried 4-1 (Ed Morejon opposed the vote).
OTHER BUSINESS
Mr. Cohen discussed the responsibility of a Trustee and noted that he thinks this board is
doing a great in regards to the investments and all, but he stated that he thinks they should
be more focused on paying down the plans unfunded liability. Mr. Morejon reviewed the
history of this board and stated that this plan is a fairly new defined benefit plan
compared to other defined benefit plans around. Every year the City and the pension plan
contribute their required contributions to make the plan whole. This pension plan is
unfunded like most plans around here, but they are not underfunded. Mr. Cohen
commented that he would like to speak directly to the pension plans Actuary and the City
officials regarding some of his concerns about the plans unfunded liability. He would
also like to have the Actuary run some scenarios in regards to paying down or paying off
5
the plans unfunded liability. Mr. Morejon explained that making more changes to the
plan right now could have a negative impact on the plan and the City because of the
recent changes that were just made to the plan. Mr. Murphy stated that he does no think
the plans unfunded liability is unreasonable, as the board consults with their professional
service providers each year in regards to paying down the unfunded liability (which
happens over many of years). The Trustees noted that Mr. Cohen is more then welcome
to speak to the City officials and the plan’s Actuary in regards to coming up with ways to
pay off the plans unfunded liability as long as there is no fee incurred to the plan.
Mr. Rhodes stated that he will provide Ms. Ross with Brandon Zace’s phone number in
regards to his share account balance that he is entitled to.
There being no further business, the meeting adjourned at 12:14PM.
Respectfully submitted,
Tom Murphy, Secretary