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Home My WebLink AboutAgenda Police Pension 111208Agenda City of Palm Beach Gardens Police Officers' Pension Fund Special Meeting MEETING OF NOVEMBER 12, 2008 LOCATION: City Council Chambers' Police Conference Room 10500 North Military Trail Palm Beach Gardens, FL 33410 TIME: 1:00 PM 1. Call Meeting To Order 2. Roll Call: • Lt. Jay Spencer, Chairman • David Pierson, Secretary • Jules Barone, Trustee • Brad Seidensticker, Trustee • Wayne Sidey, Trustee 3. Investment Consultant Report - Thistle Assets (John McCann) ■ Review of the current market situation 4. Adjourn Next Meeting Date: *Thursday January 29, 2009 @ 9AM PLEASE NOTE: Should any intere4ed party seek to appeal any decision of this Board with respect to any matter con�idered at -?uch meeting or heaiing, � /hv will n >ed a iecorcl of the proceedings and for such purpose may need to ensure that a a,�rfratim record of the proceeding" is reader, which record includes the to timony and evidence upon which the appeal is, to be based. In accordara e. w,th the Arnericans With Disabillties Act of 1990, persons neecling a special accommodation to nartie rate n this meeting _,hould contact Uri: I he lie n. ,ion Resource Center, I I(:. no later than four days prior to this meal rny. PALM BEACH GARDENS POLICE 11112/2008 TOTAL JUNE 30 MV CONTRIBUTIONS JULY (not $1,065,000) TOTAL SEPT 2008 ACTUAL SEPT 2008 SEPT 2008 LOSS % LOSS ICC RHUMBLINE CASH $9,002,175 $0 ACTUAL FIXED % 47% $12,202,147 0% $25,720,499 LARGE GROWTH REBALANCE TO 35% $3,547,383 $3,199,972 RECOMMEND S &P500 8% 14% $2,000,000 S &P400 FIXED $1,028,820 $12,202,147 S &P600 0% S &P500 $199,972 TOTAL $4,290,512 17% S &P400 $1,517,520 6% S &P600 $1,735,202 7% INTERNATIONAL(9 -30 -2008) TOTALS $15,749,530 $7,543,234 FIXED & CASH % 47% EQUITY % 53% POLICY 55110/35 GRAND TOTAL $25,720,499 INTERNATIONAL REVIEW DATE PRICE SHARES VANGUARD GLOBAL 12/31/2007 23.71 21980.684 4/28/2008 22.49 30162.098 7/1/2008 20.78 38246.795 7/1/2008 20.78 47245.833 9/30/2008 16.65 47245.833 VANGUARD GROWTH 12/31/2007 78.98 7001.016 4/28/2008 76.52 9405.616 7/1/2008 69.94 11807.675 7/1/2008 69.94 14481.395 9/30/2008 56.71 14481.395 VANGUARD VALUE 12/31/2007 41.98 12756.106 4/28/2008 41.25 17216.712 7/1/2008 37.62 21682.422 7/1/2008 37.62 26653.182 9/30/2008 30.76 26653.182 TOTAL JUNE 30 MV CONTRIBUTIONS JULY (not $1,065,000) TOTAL SEPT 2008 ACTUAL SEPT 2008 SEPT 2008 LOSS % LOSS MV $521,162.02 $678,345.58 $794,768.40 $981,768.41 $786,643.12 $552,940.24 $719,717.74 $825,828.79 $1,012,828.77 $821,239.91 $535,501.33 $710,189.37 $815,692.72 $1,002,692.71 $819,851.88 $2,427,734.91 $2,454,000 $561,000 $3,015,000 $2,427,735 $587,265 19.48% 7.78% 3.89% 0.78% INTNL. $2,427,735 9% $2,427,735 184000.0009 168000.0037 187000.0096 183999.992 168000.0065 186999.9768 183999.9975 168000.0102 186999.9912 2453640 REBALANCING FIXED POLICY % 35% $9,002,175 ACTUAL FIXED % 47% $12,202,147 MV 10/31/2008 $25,720,499 REBALANCE TO 35% $3,199,972 RECOMMEND S &P500 8% $2,057,640 $2,000,000 S &P400 4% $1,028,820 $1,000,000 S &P600 0% $113,512 $199,972 TOTAL $3,600,870 MV $521,162.02 $678,345.58 $794,768.40 $981,768.41 $786,643.12 $552,940.24 $719,717.74 $825,828.79 $1,012,828.77 $821,239.91 $535,501.33 $710,189.37 $815,692.72 $1,002,692.71 $819,851.88 $2,427,734.91 $2,454,000 $561,000 $3,015,000 $2,427,735 $587,265 19.48% 7.78% 3.89% 0.78% INTNL. $2,427,735 9% $2,427,735 184000.0009 168000.0037 187000.0096 183999.992 168000.0065 186999.9768 183999.9975 168000.0102 186999.9912 2453640 Comparison of strategies through historical bear markets as defined by S &P 500 equal amount Source: Ibbotson Associates Yearbook & Zephyr Associates pomp ir• :. u ! •r- ,Y ! I• _ � .�.. •Ire J . _�' .� � ► pe', ' • • '�.. Rr . m REVISED PALM BEACH GARDENS POLICE PENSION FUND EXECUTIVE SUMMARY SEPTEMBER 30, 2008 Palm Beach Gardens Police Pension Fund - REVISED Executive Summary Report Table of Contents SECTION PAGE Market Snapshot 1 Index Comparisons 2 Compliance Report 3 Total Portfolio Pie Chart 4 Manager Pie Chart 5 Asset Allocation Table 6 Total Ranks Table 7 Manager Ranks 8 Scatterplot Graphs: Total Fund Graph 9 Rhumbline Equities Graph 10 ICC Fixed income Graph 11 Beta Graph 12 Alpha Graph 13 Beta /Alpha Table 14 Batting Average Graph 15 Batting Average /R-Squared Table 16 Other Managers' Page 17 tra thistle setC�atisultiug� lovI (7.1 hisfir ,asset Tonsuffing Major Economic Indicators MARKET SNAPSHOT 3RD QUARTER 2008 INDEX RETURNS MSCI EAFE Lehman Aggregate ♦ The CPI- Urban/1982 -84 =100 for the 12 -month period ended September 2008 rose 4.9 %. In the third quarter, consumer prices rose at a seasonally adjusted annual rate of 2.6 %. ♦ The Producer Price Index (PPI) for finished goods rose 8.7% for the 12 -month period ended in September. The seasonally adjusted annual rate for the third quarter is -0.4 %. ♦ Real Gross Domestic Product (GDP) rose at a seasonally adjusted annual rate of 2.8% for the second quarter of 2008 and 0.9% in the first quarter of 2008. ♦ The seasonally adjusted unemployment rate is 6.1% in September compared to 5.5% in June. THISTLE ASSET CONSULTING 1321 Piazz Delle Pallottole, Boynton Beach, Florida 33426 Phone: 561- 737 -3996 Facsimile: 561-737-6119 - 20.50% - 28.91% -0.48% 0.64% Federal Reserve News ♦ During the third quarter, the Federal Reserve Board cut the primary discount rate by 0.50% to 1.75 %. The primary discount rate is a result of the new discount rate program approved by the Federal Reserve Board on October 31, 2002. The primary discount rate is the interest rate the Federal Reserve charges banks for short-term loans. ♦ The Federal Reserve Open Market Committee cut its target for the federal funds rate by 0.50% to 1.50% in the third quarter. The federal funds rate is the interest rate banks charge each other for overnight loans. Sector Trends ♦ Best Performing Sector: Consumer Staples increased 4.14% in the 3`a quarter. ♦ Worst Performing Sector: Energy declined 24.95% in the 3`a quarter. Source: Standard & Poors (Performance reflects Price Returns Only) QTR YTD S &P 500 -8.37% - 19.29% Russell 1000 -9.35% - 19.50% Russell 1000 Growth - 12.334% - 20.27% Russell 1000 Value -6.11% - 18.85% S &P Mid -cap 400 - 10.87% - 14.34% MSCI EAFE Lehman Aggregate ♦ The CPI- Urban/1982 -84 =100 for the 12 -month period ended September 2008 rose 4.9 %. In the third quarter, consumer prices rose at a seasonally adjusted annual rate of 2.6 %. ♦ The Producer Price Index (PPI) for finished goods rose 8.7% for the 12 -month period ended in September. The seasonally adjusted annual rate for the third quarter is -0.4 %. ♦ Real Gross Domestic Product (GDP) rose at a seasonally adjusted annual rate of 2.8% for the second quarter of 2008 and 0.9% in the first quarter of 2008. ♦ The seasonally adjusted unemployment rate is 6.1% in September compared to 5.5% in June. THISTLE ASSET CONSULTING 1321 Piazz Delle Pallottole, Boynton Beach, Florida 33426 Phone: 561- 737 -3996 Facsimile: 561-737-6119 - 20.50% - 28.91% -0.48% 0.64% Federal Reserve News ♦ During the third quarter, the Federal Reserve Board cut the primary discount rate by 0.50% to 1.75 %. The primary discount rate is a result of the new discount rate program approved by the Federal Reserve Board on October 31, 2002. The primary discount rate is the interest rate the Federal Reserve charges banks for short-term loans. ♦ The Federal Reserve Open Market Committee cut its target for the federal funds rate by 0.50% to 1.50% in the third quarter. The federal funds rate is the interest rate banks charge each other for overnight loans. Sector Trends ♦ Best Performing Sector: Consumer Staples increased 4.14% in the 3`a quarter. ♦ Worst Performing Sector: Energy declined 24.95% in the 3`a quarter. Source: Standard & Poors (Performance reflects Price Returns Only) 15.00 5.00 -5.00 0 d -15.00 -25.00 -35.00 Index Comparison September 30, 2008 3 Months Last 12 Months Last 3 Years (Annualized) • Lehman Gov /Credit Bond • Russell 1000 Growth • Russell 2000 Value C' 4istif Asset Q:g1i5111ting W • Lehman Gov /Credit - Intermediate 13 S&P 500 ■ Russell 1000Value ■ Russell 2000Growth • Russell 3000 ■ MSCI SAFE Page 2 3. Palm Beach Gardens Police Pension Fund - REVISED r Ip Compliance Report September 30, 2008 4. Did the equity return, over the trailing 5 -year period, rank in the top 50% of the Mobius 38.4% Broad YES N� TOTAL FUND 1. Did the total return, over the trailing 3 -year period, exceed the policy, which is comprised of 25% P 5. S &P500,10% S &P400,10% S &P600,10% R1000G,10% EAFE and 35% LBGC? [0.99 vs. 1.831 W r- 2. Did the total return, over the trailing 3 -year period, rank in the top 50% of the Universe comprised of W r- 6. 25% Mobius Broad Large Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Cap Growth, 10% W r- International and 35% Broad Fixed? [36th] 3. Did the total return of the fund over the trailing 3 -year period equal or exceed 7.5% (actuarial r ,� 1. assumption rate of return)? [0.99 vs. 7.501 r- p 2. TOTAL EQUITY R r 1. Did the equity return, over the trailing 3 -year period, exceed the 38.4% S &P 500,15.4 % S &P 400,15.4% r R 3. S &P 600,15.4% R1000G index and 15.4% EAFE? [ -0.24 vs. 0.331 r- p 2. Did the equity return, over the trailing 5 -year period, exceed the 38.4% S &P 500,15.4% S &P 400,15.4% r ,r S &P 600,15.4% R1000G index and 15.4% EAFE? [5.72 vs. 6.37] 3. Did the equity return, over the trailing 3 -year period, rank in the top 50% of the Mobius 38.4% Broad r Ip Large Cap, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth and 15.4% International Universe? [52nd] 4. Did the equity return, over the trailing 5 -year period, rank in the top 50% of the Mobius 38.4% Broad P r• Large Cap, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth and 15.4 % International Universe? [18th] 5. Is the amount invested in any single security less than or equal to 5% of the market value of the total W r- equity portfolio? 6. Is the amount invested in any single industry less than or equal to 20% of the market value of the total W r- equity portfolio? FIXED INCOME - ICC CAPITAL 1. Did the fixed income return, over the trailing 3 -year period, exceed the LBGC? [3.24 vs. 4.151 r- p 2. Did the fixed income return, over the trailing 3 -year period, rank in the top 50% of the Mobius Broad R r Fixed Income Universe? [20th] 3. Did the fixed income return, over the trailing 5 -year period, exceed the LBGC? [2.98 vs. 3.791 r- p 4. Did the fixed income return, over the trailing 5 -year period, rank in the top 50% of the Mobius Broad W �- Fixed Income Universe? [33rd] 5. Is the amount invested in any single security (with exception of U.S. Government and its agencies) less p r than or equal to 5% of the market value of the total fixed income portfolio? 6. Is the minimum quality rating of the bond investments BBB from Standard & Poor's or BAA from r PF Moody's ?(Lehman Brothers Bond) l[,ht5tll .�5.eil't l'.oriUlttng Page 3 Palm Beach Gardens Police Pension Fund - REVISED Total Assets Fixed Income 38% September 30, 2008 Cash 8% ■ Equities ■ Fixed Income ■ Cash kitil�,hi�tle ��etC�unsulfingkit Equities 54% Page 4 ICC Fixed 46% Palm Beach Gardens Police Pension Fund - REVISED Total Assets September 30, 2008 Rhumbline S&P500 19% Rhumbline S &P400 7% ICC Lg. Growth 9% 11% :humbline S&P600 8% ■ Rhumbline S &P500 ■ Rhumbline S&P400 ■ Rhumbline S&P600 D Intl. Equity ■ ICC L . Growth ■ ICC Fixed T �Itt�tlr ,:�1,5�Pt L11Iia1�Ifllii� Page 5 Palm Beach Gardens Police Pension Fund - REVISED Performance Evaluation Summary September 30, 2008 Manager Equities Fined Income Cash Total % of Total Rhumbline S&P500 $5,144,000 $0 $0 $5,144,000 19.1% Rhumbline S &P400 $1,934,000 $0 $0 $1,934,000 7.2% Rhumbline S &P600 $2,170,000 $0 $0 $2,170,000 8.1% Intl. Equity $2,428,000 $0 $0 $2,428,000 9.0% ICC Lg. Growth $2,863,000 $0 $0 $2,863,000 10.6% ICC Fixed $0 $10,089,000 $2,269,000 $12,358,000 45.9% Total ----------------------------------------------------------------------------------------------------------------------------------------------------------------- $14,539,000 $10,089,000 $2,269,000 $26,897,000 100.00/0 of Total 54.1% 37.5% 8.4% 100.00/0 Target % 60.0% 40.0% 0.0% 100.0% Wt,4istfr And `OR5111tillp Page 6 Palm Beach Gardens Police Pension Fund - REVISED Performance Evaluation Summary Return -3.25% 1.22% 3.24% 2.98% 4.98% 3.56% 3.36" o 1.83% 3.80% Ranking (Broad Fired) 44 25 20 3.3 27 59 28 75 61 Policy Return (LBAB) -0.48% 3.66% 4.15% 3.79% 5.13% 3.67% 2.80% 3.68% 5.40% * 25% Broad Large Cap Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Growth, 10% International, 35% Broad Fixed ** 25% S &P500, 10% S &P400, 10% S &P600, 10% R1000G, 10% SAFE, 35% LBAB * ** 38.4% Broad Large Cap Core, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth, 15.4% International Gold iudicatc; cqual to or [Wilt t11,' iud1'A-. or bl upper 40",, of �u�it�er�e Red indicates bottom 40% of universe thistle Asset crousulting W Pa 7 Page September 30, 2008 Current Fiscal Year uarter One Year Three Years Five Years 2007 2006 2005 2004 2003 TOTAL FUND (Net of Fees) Return -7.72% - 13.73% 0.99% 4.27% 11.90% 6.71% 9.78% 8.97% 12.88% Ranking ( *) 60 51 36 36 25 49 29 57 74 Policy Return ( * *) -6.81% - 12.83% 1.83% 5.26% 12.98% 7.22% 10.33% 10.94% 17.37% TOTAL EQUITIES Return - 11.61% - 23.23% -0.24% 5.72% 17.99 ",, 9. _5 9?„ 15.33% 15.36% 25.95% Ranking ( * * *) 95 100 52 1 S 4 21 7 12 6 Policy Return (38.4 %S &P500, 15.4 %S &P400, 15.4 %S &P600, 15.4% R1000G, 15.4% SAFE) - 10.19% - 21.04% 0.33% 6.37% 17.05% 9.27% 16.00% 16.21% 25.50% TOTAL FIXED INCOME Return -3.25% 1.22% 3.24% 2.98% 4.98% 3.56% 3.36" o 1.83% 3.80% Ranking (Broad Fired) 44 25 20 3.3 27 59 28 75 61 Policy Return (LBAB) -0.48% 3.66% 4.15% 3.79% 5.13% 3.67% 2.80% 3.68% 5.40% * 25% Broad Large Cap Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Growth, 10% International, 35% Broad Fixed ** 25% S &P500, 10% S &P400, 10% S &P600, 10% R1000G, 10% SAFE, 35% LBAB * ** 38.4% Broad Large Cap Core, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth, 15.4% International Gold iudicatc; cqual to or [Wilt t11,' iud1'A-. or bl upper 40",, of �u�it�er�e Red indicates bottom 40% of universe thistle Asset crousulting W Pa 7 Page Palm Beach Gardens Police Pension Fund REVISED Performance Evaluation Summary September 30, 2008 Return Current - 16.54 ",. 1.85 °;, Fiscal Year 18.74% 6.603, 22.37"., uarter One Year Three Years Five Years 2007 2006 2005 2004 2003 (50 %Br.Lg.Cap &50 %Br.Sm.Cap) 93 14 RHUMBLINE S &P 500 EQUITY PORTFOLIO 7 26 81 5 Return - S.21 "„ - 21.72 "„ 0.41% 5.28'- 16.63 "„ 10.881% 12.22% 13.84% 24.43% Ranking (Br.Large Cap Core) 31 36 28 48 39 27 57 .35 25 Policy(S &P500) -8.37% - 21.98% 0.22% 5.17% 16.44% 10.79% 12.25% 13.87% 24.40% RHUMBLINE S &P 400 EQUITY PORTFOLIO Return - 10.42 ";, - 16.54 ",. 1.85 °;, 8.74 " >, 18.74% 6.603, 22.37"., 17.621., n/a Ranking (50 %Br.Lg.Cap &50 %Br.Sm.Cap) 93 14 18 7 26 81 5 30 n/a Policy (S &P 400) - 10.87% - 16.68% 1.78% 8.65% 18.76% 6.56% 22.16% 17.55% n/a RHUMBLINE S &P 600 EQUITY PORTFOLIO 4 Years Return - 1.36% - 1.3.6-1 "„ 2.29% 6.71'x, 15.17 "„ 7.61% 21.16% n/a n/a Ranking (Broad Small Cap) 28 22 29 24 51 52 32 n/a n/a Policy (S &P 600) -0.86% - 13.83% 2.00% 6.50% 14.93% 7.16% 21.22% n/a n/a ICC LARGE CAP GROWTH EQUITY PORTFOLIO 2- trs 3- trs 1 -Year Return - 17.58% - 14.69% -25.11% - 30.79% n/a n/a n/a n/a n/a Ranking (Broad Large Cap Growth) 91 82 82 100 n/a n/a n/a n/a n/a Policy (R1000G) - 12.33% - 11.23% - 20.27% - 20.88% n/a n/a n/a n/a n/a INTERNATIONAL EQUITY 3 Otrs. 1 -Year 2 -Year Return -19.471%, - 27.673, - 29.10" -40 %, 27.18 "„ n/a n/a n/a n/a Ranking (International Equity) .36 31 36 ; -1 43 n/a n/a n/a n/a Policy (MSCI SAFE) - 20.50% - 28.91% - 30.12% - 6.40% 25.38% n/a n/a n/a n/a Z I irid"I or fir Upper 40', ,,rrni: Rr,t milicatcs bottom 40% of universe (,,l115tte asset Consulting W Page 8 September 30, 2008 EXPLANATION OF RISK /REWARD SCATTERPLOT GRAPHS The crossing lines represent the 5 -year return (horizontal line) and 5 -year standard deviation or volatility or risk (vertical line) of the index against which the Fund is being measured. Each point represents the Fund's 5 -year return (vertically) and standard deviation or volatility (horizontally), relative to the index. ff a point is in the southwest quadrant, for example, the 5 -year return of the Fund has been less than (below) the index line, and the 5 -year standard deviation (volatility) has also been less than (to the left oj) the index line. There are four points, one for each of the last four quarters. The earliest one is the smallest and the quarter just ended being the largest. Each point shows the 5 -year relative position of the Fund versus the index for that quarter. The movement of the points shows the trend, or direction, over time. As noted in the graph, the best place to be is the northwest quadrant (less risk and a higher return); the worst place to be is the southeast quadrant (more risk and a lower return). �itiat�P .�5�et �IItt�111tItt1� 2 K z cq 0 o� o� U 0.1 ^^r �I -2 Palm Beach Gardens Police Pension Fund - REVISED Total Fund Trailing 5 -Years (versus 25% S &P500, 10% S &P400, 10% S &P600,10% R1000G, 10% EAFE, 35% LBGQ September 30, 2008 -2 0 2 Risk (Difference in Standard Deviations) • 9/30/2008 ♦ 613012008 0313112008 ♦ 1213112007 I ��histle �Seet C�uusnitinufi Page 9 Palm Beach Gardens Police Pension Fund - REVISED Total EguityTrailing 5 -Years (versus 38.4% S &P 500,15.4% S &P 400,19.4% S &P 600,15.4% RIOOOG & 15.4% Intl.) 2 U 0� ti CO -2 N September 30, 2008 Risk (Difference in Standard Deviations) • 9/30/2008 ♦ 613012008 ❑ 3/31/2008 ♦ 1213112007 I C, asset 6115111filig 2 Page 10 Go k 4) z or by 0 o� U 0� ti CO -2 N September 30, 2008 Risk (Difference in Standard Deviations) • 9/30/2008 ♦ 613012008 ❑ 3/31/2008 ♦ 1213112007 I C, asset 6115111filig 2 Page 10 2 k G o� z eo rA 0 o) o� v o� Q C. -2 -2 Palm Beach Gardens Police Pension Fund - REVISED ICC Fixed Income Trailing Since Inception (versus LBGQ September 30, 2008 0 2 Risk (Difference in Standard Deviations) • 913012008 ♦ 613012008 ® 3/31/2008 ♦ 1213112007 I i l',hi5tlr:��xet�nttsttlting� Page 11 Palm Beach Gardens Police Pension Fund - REVISED Beta: Trailing 5 -Year Risk September 30, 2008 Sep -O8 Jun -O8 Mar -O8 Dec -07 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 ■ Total Fund ■ Large Cap ❑ Mid Cap ❑ Small Cap ■ ICC Fixed ■ International ■ Large Growth whistle .�SSet �un�idtni9 �%i Page 12 Palm Beach Gardens Police Pension Fund- REVISED Alpha: Trailing 5 -Year Reward September 30, 2005 5.0% 0.0% -5.0% -10.0% TOTAL FUND & INDIVIDUAL MANAGERS Sep -08 Jun -US Mar -US Dec -07 ■Total Fund ■ Large Cap ❑Mid Cap ❑ Small Cap ■ ICC Fixed D International ■ Large Growth � �itt�fll' :�a51't LOli5llltttii� Page 13 Palm Beach Gardens Police Pension Fund - REVISED Alpha & Beta: 5 -Years Trailing (or Inception if Less) September 30, 2008 BETA Current Li ict� Sen -O8 -O8 un -08 Mar -08 Dec -07 Total Fund * 0.89 0.86 0.84 0.86 Managers, Fixed Income ICC Fixed LBAB 0.91 0.71 0.57 0.56 Managers, Equities S &P500 0.14% 0.11% 0.12% 0.13% Large Cap S &P500 0.99 0.99 0.99 0.99 Mid Cap S &P400 0.99 0.99 1.00 0.99 Small Cap S &P600 0.99 0.99 0.99 0.99 International EAFE 0.47 0.32 0.41 0.55 Large Growth R1000G 1.24 ALPHA Total Fund * -0.40% 0.15% 0.10% 0.08% Managers, Fixed Income ICC Fixed LBAB -0.47% 0.92% 1.44% 1.45% Managers, Equities Large Cap S &P500 0.14% 0.11% 0.12% 0.13% Mid Cap S &P400 0.14% 0.12% 0.12% 0.14% Small Cap S &P600 0.23% 0.37% 0.24% 0.18% International EAFE -1.89% 4.98% 5.63% 9.57% Large Growth R1000G 1.24% * 25% S &P 500, 10% S&P400, 10% S&P600, 10% R1000G, 10% SAFE, 35% LBAB himir Asset 606111fillp W Page 14 100 75 50 25 X17 Palm Beach Gardens Police Pension Fund - REVISED Batting Average: 5 -Years Trailing September 30, 2008 TOTAL FUND & INDIVIDUAL MANAGERS S(p -08 Jun -08 AltI) -1 ,, Dec -07 ■Total Fund ■Large Cap OMidCap 13SmallCap ■ICCFixed ■International ■LargeGr=th kit Chic #le Asset Cronsuffillp T Page 15 • Palm Beach Gardens Police Pension Fund REVISED Batting Average: 5 -Yeats Trailing (orinception ifLess) September 30, 2008 BATTING AVERAGE Current Po icy Sep -OS un -08 Mar -08 Dec -07 Total Fund 30.00 30.00 25.00 25.00 Managers, Fixed Income ICC Fixed LBAB 55.00 60.00 50.00 50.00 Managers, Equities Large Cap S &P500 70.00 65.00 60.00 60.00 Mid Cap S &P400 60.00 55.00 55.00 55.00 Small Cap S &P600 61.03 64.30 62.28 60.01 International EAFE 50.00 42.86 33.33 40.00 Large Growth R1000G 25.00 R- SQUARED Total Fund 0.97 0.96 0.96 0.97 Managers, Fixed Income ICC Fixed LBAB 0.71 0.78 0.76 0.76 Managers, Equities Large Cap S &P500 1.00 1.00 1.00 1.00 Mid Cap S &P400 1.00 1.00 1.00 1.00 Small Cap S &P600 1.00 1.00 1.00 1.00 International EAFE 0.33 0.14 0.16 0.25 Large Gr0717th R1000G 0.84 * 25% S&P 500, 10% S &P400, 10% S&P600, 10% R1000G, 10% SAFE, 35% LBAB 0hlstle Asset 6115111tilig � Page 16 Performance of0thetManagers September 30, 2008 Qtr YTD 1Yr 3Yr 5Yr 10Yr CORE EQIIITY Atlanta Capital Management Co., LLC - High Quality Growth Plus - Gross Size Eagle Asset Management - Conservative Large Cap Equity - Gross Size ICC Capital Management, Inc - Core Value - Gross Size Inverness Counsel - Miami Beach Fire & Police - Gross Size (Equity Only) INVESCO - Structured Core Equity - Gross Size Madison Investment Advisors, Inc. - Large Cap Equity (Instl) - Gross Size Rhumbline Advisers Corporation - Russell 1000 Index Fund - Gross Size Rhumbline Advisers Corporation - S &P 500 Index Fund - Gross Size Robeco Investment Management, Inc. - WPG Disc Equity Large Cap - Gross Size Voyageur Asset Management - Large Cap Core Russell 1000 S &P 500 - - GROWTH E WTY Allegiant Asset Management - Large Capitalization Growth Equity - Gross Size Clearwater Capital Managment II - U.S. Active Large Cap Growth Equity - Gross Size Davis Hamilton Jackson & Associates - Quality Growth - Gross Size Denver Investment Advisors, LLC - Growth - Gross Size ICC Capital Management, Inc - Large Cap Growth Equity - Gross Size Montag & Caldwell, Inc. - Large Cap Growth - Gross Size OakBrook Investments, LLC - OakBrook Select Equity - Gross Size Rhumbline Advisers Corporation - Russell 1000 Growth Index Fund - Gross Size Sazvgrass Asset Management, LLC - Large Cap Growth Equity - Gross Size SIPCO - U.S. Growth Leaders - Gross Size State Street Global Advisors - Active U.S. Large Cap Growth Strategy - Gross Size Voyageur Asset Management, Inc. - Large Cap Growth - Gross Size Russell 1000 Growth S &P 500 /Citigroup Growth Rhumbline Large Cap(FYE) Rhumbline Mid Cap(FYE) Rhumbline Small Cav(FYE) WC,histlr Asset Conmltingw -9.96 -15.71 -15.71 2.45 5.60 3.56 -6.75 -23.27 -23.27 -0.59 4.89 6.14 -6.56 -17.39 -17.39 2.72 7.53 6.22 -5.46 -18.04 -18.04 3.75 7.86 -0.65 -12.98 -12.98 1.60 4.85 5.59 -9.31 -22.00 -22.00 0.18 5.48 6.25 -8.19 -21.73 -21.73 0.37 5.24 3.24 -7.99 -20.00 -20.20 1.28 6.30 4.40 -9.35 -22.10 -22.10 0.13 5.49 3.49 -8.37 -21.98 -21.98 0.22 5.17 3.06 -11.52 -24.22 -24.22 -0.75 4.05 7.47 -10.07 -16.50 -16.50 1.06 3.85 2.84 -17.70 -26.29 -26.29 -0.76 5.07 6.40 -15.78 -28.43 -28.43 -3.95 1.72 -9.20 -11.99 -11.99 4.30 6.71 3.95 1.35 -8.70 -8.70 4.52 6.19 6.25 -12.37 -20.83 -20.83 0.16 3.79 -7.99 -19.73 -19.73 1.00 5.33 4.15 -3.23 -12.92 -12.92 6.52 8.97 -10.47 -19.37 -19.37 0.63 4.82 0.82 -7.50 -19.12 -19.12 -1.13 3.42 4.34 -12.33 -20.88 -20.88 0.04 3.74 0.59 -11.24 -19.44 -19.44 0.27 3.70 1.30 -8.21 -21.72 -21.72 0.41 5.28 n/a _ -10.82 -16.54 -16.54 1.85 8.74 n/a -1.36 -13.64 - 13.64 2.29 n/a n/a -19.47 -29.10 -29.10 n/a n/a n/a -17.56 -30.79 -30.79 n/a n/a n/a Page 17 Performance of Other Managers September 30, 2008 W:1 ;bi5ttr Asset(ConSUltinu Page 18 _qtr YTD 1Yr 3Yr 5Yr 10Yr VALUE EQUITY Aletheia Research and Management,Inc - Aletheia Value - Gross Size BlackRock - Active Quant Large Cap Value - Gross Size -7.20 -20.15 -20.15 1.88 8.49 Buckhead Capital Management - Value Equity - Low PIE - Gross Size 4.78 -20.38 -20.38 0.58 5.90 7.03 Cascade Investment Counsel, LLC - Large Cap Value - Gross Size -24.57 -15.78 -15.78 4.36 14.30 10.20 Cohen & Steers Capital Mgmt., Inc. - Cohen & Steers Large Cap Value - Gross Size -6.39 -16.72 -16.72 5.16 11.17 Crawford Investment Counsel, Inc. - Dividend Growth - Gross Size -1.09 -13.67 -13.67 4.94 6.08 5.67 DePrince, Race, Zollo, Inc. - Large Cap Value Equity - Gross Size -1.59 -21.25 -21.25 1.71 7.06 8.43 Eagle Asset Management - Value - Institutional - Gross Size -6.25 -17.14 -17.14 3.24 9.46 5.87 ICC Capital Management, Inc - Core Value - Gross Size -6.56 -17.39 -17.39 2.72 7.53 6.22 Loomis, Sayles & Company, L.P. - Large Cap Value - Gross Size Missouri Valley Partners - Large Cap Value - Gross Size -6.77 -20.76 -20.76 1.04 5.78 Oppenheimer Capital - Large Cap Value - Gross Size -14.10 -41.32 41.32 -9.12 -0.20 1.02 Rhumbline Advisers Corporation - Russell 1000 Value Index Fund - Gross Size -6.12 -23.29 -23.29 0.23 7.16 5.70 State Street Global Advisors - Active U.S. Large Cap Value Strategy - Gross Size -6.76 -23.79 -23.79 0.30 6.95 6.22 The Boston Company Asset Mgmt., LLC - US Large Cap Value Equity Management -8.88 -21.24 -21.24 2.06 6.83 5.95 Ceredex Value Ad Large Cap Value Voyageur Asset Management, Inc. - Large Cap Value - Gross Size -6.55 -21.65 -21.65 1.37 9.61 6.39 Westwood Management Corporation - LargeCap Equity - Gross Size -8.02 -15.51 -15.51 5.58 11.52 8.36 Russell 1000 Value -6.11 -23.56 -23.56 0.09 7.11 5.54 S &P 500 /Cidgroup Value - -- 4.97 -24.50 -24.50 0.16 6.62 4.52 MID-CAP EQUITY Amalgamated Bank - LongView 400 MidCap Index Fund - Gross Size -10.89 -16.64 -16.64 1.81 8.65 10.30 Batterymareh Financial Mgmt., Inc. - US Mid Cap S&P 400 - Gross Size -18.61 -25.49 -25.49 -3.35 5.16 Chicago Equity Partners, LLC - Mid Cap Core Equity - Gross Size -15.07 -24.71 -24.71 -2.88 6.22 9.31 OakBrook Investments, LLC - Enhanced MidCap Strategy - Gross Size -12.93 -17.06 -17.06 2.34 9.76 Rhumbline Advisers Corporation - S&P 400 Index Fund - Gross Size -14.28 -19.83 -19.83 0.50 7.87 9.86 Robeco Investment Management, Inc. - BPAM Mid Cap Value Equity - Gross Size -5.31 -16.10 -16.10 4.47 11.28 9.70 State Street Global Advisors - Active U.S. Mid Cap Strategy - Gross Size -13.24 -28.97 -28.97 -4.38 6.00 8.75 Russell Midcap -12.91 -22.36 -22.36 0.09 8.62 8.34 S &P Midcap 400 -10.87 -16.68 -16.68 1.78 8.65 10.30 Rhumbline Large Cap(FYE) -8.21 -21.72 -21.72 0.41 5.28 n/a Rhumbline Mid Cap(FYE) -10.82 -16.54 -16.54 1.85 8.74 n/a Rhumbline Small Cap(FYE) -1.36 -13.64 -13.64 2.29 n/a n/a International Equt (FYE) -19.47 -29.10 -29.10 n/a n/a n/a ICC Large Growth(FYE) -17.56 -30.79 -30.79 n/a n/a n/a W:1 ;bi5ttr Asset(ConSUltinu Page 18 Performance of Other Managers -19.22 -30.16 -30.16 0.40 9.06 8.53 - September 30, 200.8_ -14.16 -25.77 -25.77 1.65 8.43 5.24 INVESCO - International Equity - Gross Size Qtr YTD 1Yr 3Yr 5Yr 10Yr ALL CAP EQUITY -23.57 -32.82 -32.82 0.49 8.81 8.36 Advanced Investment Partners - AllCap - Gross Size -8.50 18.50 -18.50 -0.79 5.35 5.34 BuckheadCaptial Management - All Cap - Gross Size -3.88 -17.62 -17.62 3.58 9.11 8.72 Diamond Hill Capital Management, Inc. - Diamond Hill Select Equity - Gross Size -11.26 -19.86 -19.86 0.98 11.84 19.20 Intrepid Capital Management, Inc. - Intrepid Multi -Cap Equity - Gross Size 0.36 -7.35 -7.35 3.85 8.56 8.84 Oak Ridge Investments, LLC - All -Cap - Gross Size -9.88 -19.22 -19.22 0.37 7.45 n/a Oppenheimer Capital - All Cap Equity - Gross Size -12.92 -25.60 -25.60 -0.36 6.75 7.65 Rockwood Capital - Strategic Equity -12.47 -20.70 -20.70 0.81 9.23 n/a Russell 3000 -8.73 -21.52 -21.52 0.26 5.70 3.80 Dow Jones Wilshire 5000 (Full Cap) -17.56 -30.79 -30.79 n/a n/a n/a SMALL CAP EQUTY Atlanta Capital Management Co., LLC - High Quality Small Cap - Gross Size 3.73 -5.95 -5.95 6.05 10.89 10.48 Eagle Asset Management - Small Cap Core - Institutional - Gross Size -2.91 -13.09 -13.09 5.82 12.06 14.96 GW Capital, Inc. - Small Cap Value Equity - Gross Size -3.53 -11.43 -11.43 5.07 18.88 15.71 Intrepid Capital Management, Inc. - Intrepid Small Cap - Gross Size 3.15 2.80 2.80 7.02 9.45 Kayne Anderson Rudnick Invst. - Small Cap - Gross Size 1.33 -11.43 -11.43 2.35 9.50 10.11 Pzena Investment Management, LLC - Pzena Small Cap Value Service - Gross Size Rhumbline Advisers Corporation - Russell 2000 Index Fund - Gross Size -1.35 -13.68 -13.68 2.28 10.00 Sawgrass Asset Management, LLC - Small Cap Growth Equity - Gross Size -14.24 -26.15 -26.15 -4.49 3.15 2.93 State Street Global Advisors - U.S. Small Cap Growth Opportunities Strategy - Gross Size -5.19 -26.04 -26.04 -5.21 4.71 5.55 Trusco Capital Management, Inc. - Small Cap Growth - Gross Size Russell 2000 -1.11 -14.48 -14.48 1.83 8.15 7.81 S &P SmallCap 600 -0.86 -13.83 -13.83 2.00 9.89 10.05 REAL ESTATE (0613012008) American Realty Advisors - Core Equity Real Estate -Sep. Accts. - Gross Size 0.88 5.37 11.27 15.72 15.41 12.73 ASB Capital Management, Inc. - EB Real Estate Fund - Gross Size 0.10 5.24 11.49 15.52 15.50 12.09 JPMorgan Asset Management - Strategic Property Fund - Gross Size 0.86 4.74 9.43 15.46 15.51 13.19 Principal Global Investors - Real Estate Core Property - Gross Size 1.13 4.00 9.22 13.94 14.06 11.97 RREEF - RREEF America II - Gross Size Dow Jones Wilshire REIT Index -5.39 -16.46 -15.29 4.92 14.53 11.27 NCREIF Property Index 0.56 5.45 9.20 14.96 14.72 12.23 INTERNATIONAL EQUITY DePrince, Race, Zollo, Inc. - International Equity - Gross Size -19.22 -30.16 -30.16 0.40 9.06 8.53 ICC Capital Management, Inc - International ADR Equity - Gross Size -14.16 -25.77 -25.77 1.65 8.43 5.24 INVESCO - International Equity - Gross Size -24.66 -28.36 -28.36 10.98 Oppenheimer Capital - International Equity - Gross Size -23.57 -32.82 -32.82 0.49 8.81 8.36 State Street Global Advisors - MSCI SAFE Index Strategy - Gross Equal -20.52 -30.23 -30.23 1.37 9.91 5.20 The Boston Company Asset Mgmt., LLC - International Core Equity Management -22.28 -34.60 -34.60 -0.62 10.81 8.72 Wentworth, Hauser and Violich - WHV International Equity - Gross Size -31.41 -18.66 -18.66 13.01 24.51 19.20 MSCI EAFE -20.50 -30.12 -30.12 1.58 10.16 5.42 Rhumbline Large Cap(FYE) -8.21 -21.72 -21.72 0.41 5.28 n/a Rhumbline Mid Cap(FYE) -10.82 -16.54 -16.54 1.85 8.74 n/a Rhumbline Small Cap(FYE) -1.36 -13.64 -13.64 2.29 n/a n/a _ International Equity(FYE) -19.47 -29.10 -29.10 n/a n/a n/a ICC Large Growth(FYE) -17.56 -30.79 -30.79 n/a n/a n/a Sal Stk ksdcnnsultings Page 19 Performance of Other Mangy September 30, 2008 _ _ Qtr YT_D_ IYr 3Yr_ 5Yr 10Yr CORE FIXED INCOME _ Atlanta Capital Management Co., LLC - High Quality Broad Market - Gross Size 0.94 6.22 6.22 5.17 4.54 5.38 Eagle Asset Management - Core Fixed Institutional - Gross Size -0.59 4.67 4.67 4.67 3.96 5.22 Galliard Capital Management - Broad Market Core Composite - Gross Size -1.54 0.92 0.92 3.44 3.69 5.48 ICC Capital Management, Inc - Core Fixed Income - Gross Size -2.60 1.62 1.62 3.31 3.13 4.81 Oppenheimer Capital - Fixed Income Aggregate - Gross Size -3.20 3.07 3.07 3.98 3.69 5.08 Rockwood Capital - Core Bond - Gross Size -1.03 3.69 3.69 4.18 3.41 4.84 Sawgrass Asset Management, LLC - Core Fixed Income - Gross Size -1.32 2.92 2.95 4.02 3.69 5.27 Voyageur Asset Management, Inc. - Broad Market Core - Gross Size -1.08 -0.37 -0.37 2.78 3.05 4.73 Lehman Aggregate Bond -0.48 3.66 3.66 4.15 3.79 5.20 Lehman Gov /Credit Bond -1.63 2.41_ 2.41 3.60 3.34 5.00 INTERMEDIATE FIXED INCOME Allegiant Asset Management - Intermediate Gov't /Credit --Gross Size -1.28 3.70 3.70 4.34 3.58 4.99 Davis Hamilton Jackson & Associates - Intermediate Fixed Income - Gross Size -1.69 3.58 3.58 4.43 3.89 5.18 Eagle Asset Management - Institutional Conservative - Gross Size -0.25 5.20 5.20 4.87 3.72 5.15 Missouri Valley Partners - Intermediate Government /Credit Fixed Income - Gross Size 0.51 5.91 5.91 5.18 4.09 Sazgmss Asset Management, LLC - Intermediate Fixed Income - Gross Size -1.51 3.01 3.01 4.20 3.36 5.00 Sit Investment Associates, Inc. - Intermediate Govt /Corp - Gross Size -0.21 1.48 1.48 3.98 3.72 5.16 Voyageur Asset Management, Inc. - Intermediate Core - Gross Size -1.75 -1.14 -1.14 2.54 2.46 4.84 Lehman Gov /Credit - Intermediate -1.19 3.15 3.15 4.04 3.25 4.96 ICC Fixed Income(FYE) -3.25 1.22 1.22 3.24 2.98 4.62 ��15�t �55d�0115t1� Page 20