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HomeMy WebLinkAboutAgenda Police Pension 081215 Agenda City of Palm Beach Gardens Police Officers’ Pension Fund MEETING OF AUGUST 12, 2015 LOCATION: City Council Chambers’ 10500 North Military Trail Palm Beach Gardens, FL 33410 TIME: 9 AM 1. Call Meeting To Order 2. Roll Call: • Jay Spencer, Chairman • Marc Glass, Trustee • John Manuel, Trustee • Greg Mull, Trustee • Brad Seidensticker, Trustee 3. Welcome New Trustee John Manuel 4. Selection of Secretary 5. Investment Manager Report – Highland Capital (Steve Stack) 6. Investment Consultant Report – Thistle Assets (John McCann) 7. Attorney Report – KKJ&L (Bonni Jensen) • Memos Regarding New State of Florida Pension Reporting Requirements (2) • Memo Regarding House Bill 1309 • Revised Application for Distribution from DROP Account 8. Administrator Report – Resource Centers (Audrey Ross) • Administrative Budget • Ratification of the Commercial Package Insurance Renewal 9. Approval of Minutes • April 30, 2015 Regular Meeting 10. Disbursements 11. Benefit Approvals 12. Financial Statements 13. Other Business • Letter from the City Requesting Permission to use GRS for their OPEB Report • Discussion Regarding the City’s Additional Contributions • Chapter 112.664 Florida Status Compliance Report 14. Public Comments 15. Adjourn Next Meeting Date: To be determined… PLEASE NOTE: Should any interested party seek to appeal any decision of this Board with respect to any matter considered at such meeting or hearing, s/he will need a record of the proceedings and for such purpose may need to ensure 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 The Pension Resource Center, LLC no later than four days prior to the meeting. C ITY OF P ALM B EACH G ARDENS P OLICE O FFICERS’ P ENSION F UND A PPLICATION FOR D ISTRIBUTION O F DROP ACCOUNT PLEASE PRINT OR TYPE: 1.a.Retiree’s Name: b.Social Security Number: *In accordance with the provisions of §119.071(5)(a)6g, Florida Statutes, the collection and use of social security num bers is authorized for the purpose of the adm inistration of the pension fund. c.Date of Birth: d.Home Telephone:() (Please include area code) e.Home Address: Number and Street City State Zip Code 2.I retired on: (Please enter the date you retired) 3.Type of Retirement which you are receiving:(Please check one) “ Normal Retirement “ Post Retirement Survivor Benefit 4.FORM OF DROP PAYMENT ELECTION Earnings or losses are credited to your account quarterly unless the account balance is zero at the end of the quarter. The DROP accounts are charged an annual pro-rata administrative charge based upon the administrative expenses of the pension fund as a whole. The form of payment you choose may have tax consequences for you. Please consult your tax advisor before you complete this section of the application. Page 2 of 4 CHECK THE DESIRED OPTION: “1.Lump-Sum Payment (eligible for rollover) If the lump sum method of distribution is selected then the entire account balance will be paid. The full amount will be paid directly to you or can be rolled over to another qualified plan, at your discretion. You may rollover the full withdrawal balance or a portion thereof, with the remainder paid to you in cash. The payout/rollover can be made in any amount of your choosing but the full amount must be taken from the plan. Any amount paid directly to you will have at least a 20% withholding deduction and may be subject to other taxes and/or penalties. You may elect to have additional taxes withheld; provide the percentage here %. “2.Partial Distribution (eligible for rollover) - Please provide the amount here: $_________________. The elected amount will be paid directly to you or can be rolled over to another qualified plan, at your discretion. You may rollover the full withdrawal balance or a portion thereof, with the remainder paid to you in cash. The payout/rollover can be made in any amount of your choosing. Any amount paid directly to you will have at least a 20% withholding deduction and may be subject to other taxes and/or penalties. You may elect to have additional taxes withheld; provide the percentage here %. “3.Three Year Payment (eligible for rollover) The account balance will be paid in three equal annual installments over a three year period. These amounts may be paid directly to you or can be rolled over to another qualified plan, at your discretion. Any amount paid directly to you will have a 20% withholding deduction and may be subject to other taxes and/or penalties. You may elect to have additional taxes withheld; provide the percentage here %. “4.Monthly Installments - Please provide the amount here: $_____________. If you choose monthly installments, then the account balance will be paid out on a monthly basis. The following rules will apply to this method of distribution: a.For retirees who separate from service during calendar year Page 3 of 4 they become age 50 (or older) - The monthly amounts may be determined by you according to your need. If the amount of the payment is to be paid over less than 120 payments, you can be subject to additional taxes and/or penalties. At age 70½, the monthly installment shall be paid to you at a rate which meets the minimum distribution rules of Internal Revenue Code §401(a)(9). The amount of the monthly benefit or the method of payment (for example, from monthly to lump sum) can be changed on a semi-annual basis during the open enrollment periods. The amount of the monthly payment can be reduced to zero unless the payee has reached age 70½. The open enrollment periods will be the months of August and February. During the open enrollment period only, a retiree may request a partial lump sum withdrawal and still continue to receive the monthly payments. b. For retirees who separate from service before calendar year they become age 50 - You may choose any amount provided the amount of the payment is expected to last 10 years or more. The monthly amount chosen must continue in effect until at least age 59½. If the payments last less than 10 years, you can be subject to additional taxes and/or penalties. At age 70½, the monthly installment shall be paid at a rate which meets the minimum distribution rules of Internal Revenue Code §401(A)(9). c.A 20% withholding tax applies to all payments. You can elect a higher withholding. Please provide the percentage here: %. d.If there are less than 15 times the monthly installment at the start of the fiscal year, then the remaining balance will be paid in a lump sum. THE FORM OF PAYMENT YOU CHOOSE MAY HAVE TAX CONSEQUENCES FOR YOU. PLEASE CONSULT YOUR TAX ADVISOR AND COMPLETE THE “STATEMENT OF CONSULTATION WITH TAX ADVISOR FORM” BEFORE MAKING YOUR ELECTION. Page 4 of 4 5. STATEMENT OF CONSULTATION WITH TAX ADVISOR Please check the one applicable statement: “I hereby state that I have discussed my election of payment method from the DROP Account with the following Tax Advisor of my own choosing. Name of Advisor Company “I have chosen not to consult with a Tax Advisor. I hereby certify that the statements contained in this 4 page application are true and correct to the best of my knowledge, and understand that false statements may disqualify me for benefits. This application is a supplement to my prior application for retirement and supercedes it where conflict exists. This form of payment for the DROP account revokes any prior DROP payment elections I have made. I have reviewed the Designation of Beneficiary Form filed with the Board of Trustees and hereby certify its accuracy. If I desire to change my designated beneficiary(ies), I will file a new Designation of Beneficiary Form with this application. This application must be signed in the presence of a Notary Public. Retiree's Signature Date STATE OF COUNTY OF Sworn to (or affirmed) and subscribed before me this ___ day of , 20 by who is personally known to me or has produced as identification. Signature, Notary Public Printed, typed or stamped name of Notary Revised - June 2015 C:\scans\2015 App DROP Wthdrw.wpd PALM BEACH GARDENS POLICE PENSION FUND Benefit Approvals Meeting of August 12, 2015 APPLICATION TO EXIT THE DROP JOSEPH CORRAO DATE OF BIRTH 09/08/1964 DATE OF HIRE 05/59/1985 DROP ENTRY DATE 05/31/2010 DATE OF TERMINATION 05/31/2015 FORM OF BENEFIT 100% J&S MONTHLY BENEFIT AMOUNT $7,527.77 SUPPLEMENTAL BENEFIT $ 312.50 _________________________ APPLICATION FOR DISTRIBUTION OF DROP ACCOUNTS (5/15/2015) SHEREE BROWN DATE OF RETIREMENT 05/27/2014 DATE OF BIRTH 10/01/1954 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $30,000.00 TAX WITHHOLDING (20%) $ 6,000.00 TOTAL NET DISTRIBUTION $24,000.00 CURRENT DROP ACCOUNT BALANCE $232,889.80 _________________________ APPLICATION FOR DISTRIBUTION OF DROP ACCOUNTS (6/15/2015) GWEN FLEMING DATE OF RETIREMENT 10/10/2014 DATE OF BIRTH 12/04/1963 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $40,000.00 TAX WITHHOLDING (20%) $ 8,000.00 TOTAL NET DISTRIBUTION $32,000.00 CURRENT DROP ACCOUNT BALANCE $202,364.78 _________________________ JAY SPENCER DATE OF RETIREMENT 09/03/2010 DATE OF BIRTH 01/07/1964 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $19,000.00 TAX WITHHOLDING (30%) $ 5,700.00 TOTAL NET DISTRIBUTION $13,300.00 CURRENT DROP ACCOUNT BALANCE $283,898.25 _________________________ APPLICATION FOR DISTRIBUTION OF DROP ACCOUNTS (PENDING BOARD APPROVAL) JACK SEGRETO DATE OF RETIREMENT 05/28/2015 DATE OF BIRTH 02/02/1965 TYPE OF DISTRIBUTION PARTIAL LUMP SUM- ROLLOVER TOTAL GROSS DISTRIBUTION $350,000.00 TAX WITHHOLDING (0%) $ 00.00 TOTAL NET DISTRIBUTION $350,000.00 CURRENT DROP ACCOUNT BALANCE $432,823.21 _________________________ __________________________________, SECRETARY APPROVED _________________________________, TRUSTEE _________________________________, DATE Oc t o b e r No v e m b e r De c e m b e r Ja n u a r y Fe b r u a r y March April May June 10 0 0 BB & T 36 1 , 0 6 2 . 9 0 27 7 , 5 1 8 . 9 7 31 6 , 9 3 8 . 1 4 64 2 , 6 4 9 . 2 4 46 4 , 4 9 6 . 6 9 280,823.50 210,440.58 189,798.35 186,114.20 12 1 5 A/ R E m p l o y e e B u y b a c k C o n t r i b u t i o n s 20 , 2 7 9 . 4 3 20 , 2 7 9 . 4 3 20 , 2 7 9 . 4 3 20 , 2 7 9 . 4 3 20 , 2 7 9 . 4 3 20,279.43 20,279.43 20,279.43 20,279.43 12 2 0 A/ R S t a t e C o n t r i b u t i o n s 54 6 , 7 4 8 . 7 5 0. 0 0 0. 0 0 0. 0 0 0.00 0.00 0.00 0.00 0.00 12 3 5 Pe n d i n g R e i n v e s t m e n t / D i s t r i b u t i o n 0. 0 0 0. 0 0 0. 0 0 0. 0 0 0.00 0.00 0.00 0.00 46,889.19 13 0 0 Pr e p a i d O t h e r 0. 0 0 15 5 , 6 6 6 . 2 5 17 4 , 2 3 5 . 2 8 16 1 , 5 4 0 . 4 6 13 8 , 1 4 8 . 6 2 162,473.93 187,907.54 189,203.39 197,580.54 Sa l e m T r u s t ( C o n s o l i d a t e d ) 14 0 0 Ca s h a n d E q u i v a l e n t s 59 3 , 9 2 2 . 2 9 77 3 , 3 0 7 . 3 4 1, 0 8 6 , 8 2 2 . 3 9 71 0 , 9 2 0 . 1 4 63 9 , 3 2 1 . 6 0 465,623.60 260,009.12 337,914.46 564,101.37 14 1 0 Eq u i t i e s 8, 7 6 5 , 0 4 7 . 9 6 9, 0 9 1 , 5 8 6 . 6 9 8, 7 6 7 , 1 0 0 . 9 5 8, 5 1 9 , 1 0 0 . 5 4 9, 3 8 3 , 8 9 0 . 4 5 9,379,290.32 9,364,071.89 9,378,389.53 8,622,482.08 14 2 0 Fi x e d I n c o m e 16 , 9 8 8 , 5 6 7 . 9 1 16 , 8 5 4 , 4 3 3 . 0 0 16 , 9 0 1 , 9 1 6 . 8 1 17 , 6 8 6 , 2 6 5 . 5 4 17 , 4 5 0 , 8 5 8 . 6 8 17,767,093.40 18,187,387.37 18,177,901.25 17,688,349.42 14 5 0 Ac c r u e d I n c o m e 10 9 , 2 8 2 . 0 9 11 0 , 0 3 4 . 3 9 99 , 3 1 7 . 4 8 10 1 , 4 9 6 . 7 4 12 3 , 7 1 1 . 8 9 104,170.53 114,442.12 135,023.52 110,976.57 14 6 0 Br o k e r A c c r u a l s (5 5 , 7 7 4 . 5 6 ) 32 8 , 2 0 2 . 7 9 (7 6 3 . 1 3 ) (7 3 6 . 6 8 ) 979.17 (92,514.22)(832.84)(135,421.29)(930.56) Sa l e m T r u s t T o t a l 26 , 4 0 1 , 0 4 5 . 6 9 27 , 1 5 7 , 5 6 4 . 2 1 26 , 8 5 4 , 3 9 4 . 5 0 27 , 0 1 7 , 0 4 6 . 2 8 27 , 5 9 8 , 7 6 1 . 7 9 27,623,663.63 27,925,077.66 27,893,807.47 26,984,978.88 16 0 4 Am e r i c a n C o r e R e a l t y 3, 1 7 7 , 3 3 1 . 7 9 3, 1 7 7 , 3 3 1 . 7 9 3, 7 0 5 , 7 1 1 . 1 3 3, 7 0 5 , 7 1 1 . 1 3 3, 7 0 5 , 7 1 1 . 1 3 3,860,158.97 3,860,158.97 3,860,158.97 3,946,894.23 16 1 6 Dr e y f u s I n t e r n a t i o n a l B o n d 81 5 , 1 8 7 . 9 5 81 8 , 6 6 9 . 1 8 80 9 , 3 4 5 . 2 8 80 9 , 3 4 5 . 2 8 80 9 , 3 4 5 . 2 8 808,846.91 808,846.91 808,846.91 781,477.81 16 2 8 Op p e n h e i m e r I n t e r n a t i o n a l B o n d 73 8 , 1 0 2 . 2 9 73 9 , 6 4 8 . 6 1 73 0 , 3 1 0 . 4 5 73 1 , 9 9 1 . 3 1 73 3 , 5 8 9 . 3 1 735,230.74 737,131.02 739,225.87 721,397.56 16 3 9 Va n g u a r d G l o b a l E q u i t y 2, 2 8 2 , 8 2 8 . 7 8 2, 2 8 2 , 8 2 8 . 7 8 2, 3 1 0 , 2 4 7 . 5 4 2, 3 1 0 , 2 4 7 . 5 4 2, 3 1 0 , 2 4 7 . 5 4 2,396,486.56 2,396,486.56 2,396,486.56 2,393,611.93 16 4 1 Va n g u a r d I n t e r n a t i o n a l G r o w t h 1, 6 4 4 , 9 4 1 . 4 0 1, 6 4 4 , 9 4 1 . 4 0 1, 5 9 6 , 7 3 1 . 0 1 1, 5 9 6 , 7 3 1 . 0 1 1, 5 9 6 , 7 3 1 . 0 1 1,684,414.80 1,684,414.80 1,684,414.80 1,704,236.93 16 4 2 Va n g u a r d I n t e r n a t i o n a l V a l u e 1, 4 8 4 , 8 2 1 . 5 5 1, 4 8 4 , 8 2 1 . 5 5 1, 4 0 0 , 5 0 6 . 7 2 1, 4 0 0 , 5 0 6 . 7 2 1, 4 0 0 , 5 0 6 . 7 2 1,459,084.62 1,459,084.62 1,459,084.62 1,476,823.00 16 5 4 Rh u m b L i n e A d v i s e r s 36 , 4 3 5 , 3 4 0 . 8 5 37 , 1 0 2 , 7 3 9 . 8 3 36 , 8 7 9 , 5 7 2 . 5 6 35 , 8 9 3 , 4 5 3 . 6 4 37 , 9 2 1 , 6 4 0 . 6 8 37,852,568.36 37,709,125.10 38,258,816.10 37,833,513.29 20 0 0 Ac c o u n t s P a y a b l e (3 8 , 1 6 6 . 8 3 ) 0. 0 0 (4 3 , 1 2 9 . 6 2 ) (3 8 , 9 2 8 . 2 1 ) 0.00 (44,703.88)(39,681.78)0.00 0.00 73 , 8 6 9 , 5 2 4 . 5 5 7 4 , 8 6 2 , 0 1 0 . 0 0 7 4 , 7 5 5 , 1 4 2 . 4 2 7 4 , 2 5 0 , 5 7 3 . 8 3 7 6 , 6 9 9 , 4 5 8 . 2 0 7 6 , 8 3 9 , 3 2 7 . 5 7 7 6 , 9 5 9 , 2 7 1 . 4 1 7 7 , 5 0 0 , 1 2 2 . 4 7 7 6 , 2 9 3 , 7 9 6 . 9 9 Pa l m B e a c h G a r d e n s P o l i c e Ba l a n c e S h e e t FY 2 0 1 5 Ac c o u n t D e s c r i p t i o n TO T A L R E S E R V E F U N D ( M A R K E T V A L U E ) : Oc t o b e r No v e m b e r De c e m b e r Ja n u a r y Fe b r u a r y March April May June 10 0 0 BB & T 36 1 , 0 6 2 . 9 0 27 7 , 5 1 8 . 9 7 31 6 , 9 3 8 . 1 4 64 2 , 6 4 9 . 2 4 46 4 , 4 9 6 . 6 9 280,823.50 210,440.58 189,798.35 186,114.20 12 1 5 A/ R E m p l o y e e B u y b a c k C o n t r i b u t i o n s 20 , 2 7 9 . 4 3 20 , 2 7 9 . 4 3 20 , 2 7 9 . 4 3 20 , 2 7 9 . 4 3 20 , 2 7 9 . 4 3 20,279.43 20,279.43 20,279.43 20,279.43 12 2 0 A/ R S t a t e C o n t r i b u t i o n s 54 6 , 7 4 8 . 7 5 0. 0 0 0. 0 0 0. 0 0 0.00 0.00 0.00 0.00 0.00 12 3 5 Pe n d i n g R e i n v e s t m e n t / D i s t r i b u t i o n 0. 0 0 0. 0 0 0. 0 0 0. 0 0 0.00 0.00 0.00 0.00 46,889.19 13 0 0 Pr e p a i d O t h e r 0. 0 0 15 5 , 6 6 6 . 2 5 17 4 , 2 3 5 . 2 8 16 1 , 5 4 0 . 4 6 13 8 , 1 4 8 . 6 2 162,473.93 187,907.54 189,203.39 197,580.54 Sa l e m T r u s t ( C o n s o l i d a t e d ) 14 0 0 Ca s h a n d E q u i v a l e n t s 59 3 , 9 2 2 . 2 9 77 3 , 3 0 7 . 3 4 1, 0 8 6 , 8 2 2 . 3 9 71 0 , 9 2 0 . 1 4 63 9 , 3 2 1 . 6 0 465,623.60 260,009.12 337,914.46 564,101.37 14 1 0 Eq u i t i e s 8, 7 6 5 , 0 4 7 . 9 6 9, 0 9 1 , 5 8 6 . 6 9 8, 7 6 7 , 1 0 0 . 9 5 8, 5 1 9 , 1 0 0 . 5 4 9, 3 8 3 , 8 9 0 . 4 5 9,379,290.32 9,364,071.89 9,378,389.53 8,622,482.08 14 2 0 Fi x e d I n c o m e 16 , 9 8 8 , 5 6 7 . 9 1 16 , 8 5 4 , 4 3 3 . 0 0 16 , 9 0 1 , 9 1 6 . 8 1 17 , 6 8 6 , 2 6 5 . 5 4 17 , 4 5 0 , 8 5 8 . 6 8 17,767,093.40 18,187,387.37 18,177,901.25 17,688,349.42 14 5 0 Ac c r u e d I n c o m e 10 9 , 2 8 2 . 0 9 11 0 , 0 3 4 . 3 9 99 , 3 1 7 . 4 8 10 1 , 4 9 6 . 7 4 12 3 , 7 1 1 . 8 9 104,170.53 114,442.12 135,023.52 110,976.57 14 6 0 Br o k e r A c c r u a l s (5 5 , 7 7 4 . 5 6 ) 32 8 , 2 0 2 . 7 9 (7 6 3 . 1 3 ) (7 3 6 . 6 8 ) 979.17 (92,514.22)(832.84)(135,421.29)(930.56) Sa l e m T r u s t T o t a l 26 , 4 0 1 , 0 4 5 . 6 9 27 , 1 5 7 , 5 6 4 . 2 1 26 , 8 5 4 , 3 9 4 . 5 0 27 , 0 1 7 , 0 4 6 . 2 8 27 , 5 9 8 , 7 6 1 . 7 9 27,623,663.63 27,925,077.66 27,893,807.47 26,984,978.88 16 0 4 Am e r i c a n C o r e R e a l t y 3, 1 7 7 , 3 3 1 . 7 9 3, 1 7 7 , 3 3 1 . 7 9 3, 7 0 5 , 7 1 1 . 1 3 3, 7 0 5 , 7 1 1 . 1 3 3, 7 0 5 , 7 1 1 . 1 3 3,860,158.97 3,860,158.97 3,860,158.97 3,946,894.23 16 1 6 Dr e y f u s I n t e r n a t i o n a l B o n d 81 5 , 1 8 7 . 9 5 81 8 , 6 6 9 . 1 8 80 9 , 3 4 5 . 2 8 80 9 , 3 4 5 . 2 8 80 9 , 3 4 5 . 2 8 808,846.91 808,846.91 808,846.91 781,477.81 16 2 8 Op p e n h e i m e r I n t e r n a t i o n a l B o n d 73 8 , 1 0 2 . 2 9 73 9 , 6 4 8 . 6 1 73 0 , 3 1 0 . 4 5 73 1 , 9 9 1 . 3 1 73 3 , 5 8 9 . 3 1 735,230.74 737,131.02 739,225.87 721,397.56 16 3 9 Va n g u a r d G l o b a l E q u i t y 2, 2 8 2 , 8 2 8 . 7 8 2, 2 8 2 , 8 2 8 . 7 8 2, 3 1 0 , 2 4 7 . 5 4 2, 3 1 0 , 2 4 7 . 5 4 2, 3 1 0 , 2 4 7 . 5 4 2,396,486.56 2,396,486.56 2,396,486.56 2,393,611.93 16 4 1 Va n g u a r d I n t e r n a t i o n a l G r o w t h 1, 6 4 4 , 9 4 1 . 4 0 1, 6 4 4 , 9 4 1 . 4 0 1, 5 9 6 , 7 3 1 . 0 1 1, 5 9 6 , 7 3 1 . 0 1 1, 5 9 6 , 7 3 1 . 0 1 1,684,414.80 1,684,414.80 1,684,414.80 1,704,236.93 16 4 2 Va n g u a r d I n t e r n a t i o n a l V a l u e 1, 4 8 4 , 8 2 1 . 5 5 1, 4 8 4 , 8 2 1 . 5 5 1, 4 0 0 , 5 0 6 . 7 2 1, 4 0 0 , 5 0 6 . 7 2 1, 4 0 0 , 5 0 6 . 7 2 1,459,084.62 1,459,084.62 1,459,084.62 1,476,823.00 16 5 4 Rh u m b L i n e A d v i s e r s 36 , 4 3 5 , 3 4 0 . 8 5 37 , 1 0 2 , 7 3 9 . 8 3 36 , 8 7 9 , 5 7 2 . 5 6 35 , 8 9 3 , 4 5 3 . 6 4 37 , 9 2 1 , 6 4 0 . 6 8 37,852,568.36 37,709,125.10 38,258,816.10 37,833,513.29 20 0 0 Ac c o u n t s P a y a b l e (3 8 , 1 6 6 . 8 3 ) 0. 0 0 (4 3 , 1 2 9 . 6 2 ) (3 8 , 9 2 8 . 2 1 ) 0.00 (44,703.88)(39,681.78)0.00 0.00 73 , 8 6 9 , 5 2 4 . 5 5 7 4 , 8 6 2 , 0 1 0 . 0 0 7 4 , 7 5 5 , 1 4 2 . 4 2 7 4 , 2 5 0 , 5 7 3 . 8 3 7 6 , 6 9 9 , 4 5 8 . 2 0 7 6 , 8 3 9 , 3 2 7 . 5 7 7 6 , 9 5 9 , 2 7 1 . 4 1 7 7 , 5 0 0 , 1 2 2 . 4 7 7 6 , 2 9 3 , 7 9 6 . 9 9 Pa l m B e a c h G a r d e n s P o l i c e Ba l a n c e S h e e t FY 2 0 1 5 Ac c o u n t D e s c r i p t i o n TO T A L R E S E R V E F U N D ( M A R K E T V A L U E ) : Pension Resource Centers Accounts Payable Check Register FOR: PALM BEACH GARDENS POLICE Meeting Check Number Date Payee and Description Amount 2672 May 1, 2015 City of Palm Beach Gardens $14,997.44 Retiree Insurance 2673 May 1, 2015 Pension Resource Center $2,575.00 Administrative Fee - May 2015 2674 May 1, 2015 Gerald J Wilkoff, Inc.$1,185.00 Crime Bond #CCP ZF5102422 05 for period covering June 1, 2015 through June 1, 2018 2675 May 1, 2015 Greg Mull $661.81 Reimbursement of expenses - FPPTA Trustee School - New York - April 14, 2015 - April 18, 2015 2676 May 1, 2015 Jay Spencer $145.68 Reimbursement of expenses - FPPTA Trustee School - New York - April 14, 2015 - April 18, 2015 2677 May 1, 2015 ICC Capital Management $28,405.78 Investment Management Fees - 1st Quarter 2015 2678 May 1, 2015 Rhumbline Advisers $5,972.00 Investment Management Fees - 1st Quarter 2015 2679 May 1, 2015 Gabriel Roeder Smith & Company $5,050.00 Professional Actuarial Services Rendered through 3/31/15 2680 May 1, 2015 Thistle Asset Consulting Inc.$5,304.00 Reports - Executive Summary through March 31, 2015 2681 May 1, 2015 Law Offices of Bonnie Jensen P. A. $815.70 Legal Services Rendered through 4/15/2015 2682 May 11, 2015 Marc Glass $435.98 Reimbursement of Travel Expenses - 15th Annual Wall Street Program - 04/14/2015 - 04/18/2015 2683 Printer error 2684 May 11, 2015 River House Restaurant $200.00 Gift Card - resigned board member - Trustee GC 2685 June 1, 2015 City of Palm Beach Gardens $15,749.02 Retiree Insurance 2686 June 1, 2015 Pension Resource Center $2,605.66 Administrative Fee - June 2015 2687 June 1, 2015 Law Offices of Bonni Jensen P. A. $1,811.76 Legal Services Rendered through 5/15/2015 2688 June 1, 2015 Cherry Bekaert & Holland $1,800.00 Additional bill for services rendered related to extended procedures on investments as a result of the SSAE 16 report on Salem Trust 2689 June 9, 2015 Jay Spencer $604.63 Reimbursement for travel expenses - State of Florida Police Officers Firefighters Pension School - Tallahassee - 06/01/2015 - 6/4/2015 2690 July 1, 2015 City of Palm Beach Gardens $15,749.02 Retiree Insurance 2691 July 1, 2015 Pension Resource Center $2,575.00 Administrative Fee - July 2015 2692 July 1, 2015 Gabriel, Roeder, Smith & Company $2,260.00 Professional Actuarial Services rendered through 5/31/15 2693 July 1, 2015 Law Offices of Bonnie Jensen P. A. $357.15 Legal Services Rendered through 6/15/2015 2694 July 1, 2015 United Members Insurance, Inc.$918.00 Payment for Policy # UGL 5331094- for 6/30/2015 - 6/30/2016 - Commercial Package Policy - General Liability and Hired Non-Owned Auto Liability 2695 July 1, 2015 Cherry Bekaert LLP $4,150.00 Professional Services Rendered - Final Bill for Audit Services 2696 August 1, 2015 City of Palm Beach Gardens $14,997.44 Retiree Insurance 2697 August 3, 2015 Pension Resource Center $2,575.00 Administrative Fee - August 2015 2698 August 3, 2015 Rhumbline Advisers $6,044.00 Investment Management Fee - 2nd Quarter 2015 2699 August 3, 2015 Gabriel, Roeder, Smith & Company $3,375.00 Actuarial services rendered through 6/30/2015 2700 August 3, 2015 Law Offices of Bonni Jensen, P. A. $364.80 Legal Services Rendered through 7/15/2015 2701 August 3, 2015 Thistle Asset Consulting, Inc.$5,569.00 Performance Monitoring through June 30, 2015 2702 August 5, 2015 FPPTA $450.00 Registration for Marc Glass - Fall Trustee School - 10/4/2015 - 10/7/2015 2703 August 5, 2015 Naples Grande Beach Resort $507.00 Reservations for Marc Glass - 10/4/2015 - 10/7/2015 Total: $148,210.87 Chair___________________________ Secretary___________________________ Date_______________________________ En d O c t o b e r En d N o v e m b e r En d D e c e m b e r En d J a n u a r y En d F e b r u a r y End March End April End May End June Year-To-Date In c o m e : 40 0 0 Em p l o y e r C o n t r i b u t i o n s 0. 0 0 0. 0 0 0. 0 0 60 1 , 5 9 3 . 2 5 0. 0 0 0.00 601,593.25 0.00 0.00 1,203,186.50 41 0 0 Em p l o y e e C o n t r i b u t i o n s 31 , 7 7 4 . 1 6 32 , 5 7 4 . 6 0 33 , 0 8 2 . 8 7 49 , 4 9 7 . 4 3 32 , 7 4 1 . 5 7 32,855.61 33,096.34 34,221.20 34,537.60 314,381.38 Re a l i z e d G a i n / L o s s - S a l e m T r u s t 42 1 0 Eq u i t i e s 72 3 . 0 6 78 6 . 8 3 (2 4 0 . 6 9 ) (1 8 , 1 6 5 . 7 3 ) 67 9 . 9 8 (28,803.13)7,663.05 5,130.95 (301.25)(32,526.93) 42 2 0 Fi x e d I n c o m e (8 2 1 . 4 4 ) (3 , 7 9 1 . 1 1 ) (9 , 6 8 7 . 1 4 ) 8, 9 0 9 . 2 1 (2 8 , 4 8 6 . 8 2 ) (8,383.30)(1,819.96)(4,003.44)(5,659.81)(53,743.81) Un r e a l i z e d G a i n / L o s s - S a l e m T r u s t 43 1 0 Eq u i t i e s 19 0 , 4 5 1 . 5 6 24 6 , 3 7 0 . 9 6 (2 0 , 3 8 9 . 8 5 ) (1 3 8 , 0 9 1 . 1 3 ) 67 9 , 3 1 9 . 0 2 (4,466.39)(58,055.31)307,437.83 (127,889.38)1,074,687.31 43 2 0 Fi x e d I n c o m e 74 , 7 9 0 . 6 2 63 , 5 6 6 . 8 2 (6 7 , 9 9 2 . 8 1 ) 26 9 , 6 5 4 . 1 4 (1 2 1 , 2 2 3 . 6 3 ) 27,333.57 (88,671.79)(95,861.68)(221,403.80)(159,808.56) 44 0 0 Re a l i z e d G a i n / L o s s - M g r H e l d 44 0 4 Am e r i c a n C o r e R e a l t y 0. 0 0 0. 0 0 3, 7 8 9 . 2 2 0. 0 0 0. 0 0 54,513.81 0.00 0.00 0.00 58,303.03 45 0 0 Un r e a l i z e d G a i n / L o s s - M g r H e l d 45 0 4 Am e r i c a n C o r e R e a l t y 0. 0 0 0. 0 0 13 , 8 9 9 . 4 6 0. 0 0 0. 0 0 64,183.46 0.00 0.00 97,783.53 175,866.45 45 1 6 Dr e y f u s I n t e r n a t i o n a l B o n d 0. 0 0 0. 0 0 (3 0 , 0 5 8 . 9 1 ) 0. 0 0 0. 0 0 (498.37)0.00 0.00 (27,369.10)(57,926.38) 45 2 8 Op p e n h e i m e r I n t e r n a t i o n a l B o n d 0. 0 0 0. 0 0 (1 1 , 0 7 9 . 3 8 ) 0. 0 0 0. 0 0 (22.01)0.00 0.00 (19,951.56)(31,052.95) 45 3 9 Va n g u a r d G l o b a l E q u i t y 0. 0 0 0. 0 0 (7 , 9 7 0 . 2 8 ) 0. 0 0 0. 0 0 86,239.02 0.00 0.00 (2,874.63)75,394.11 45 4 1 Va n g u a r d I n t e r n a t i o n a l G r o w t h 0. 0 0 0. 0 0 (8 6 , 6 1 8 . 9 2 ) 0. 0 0 0. 0 0 87,683.79 0.00 0.00 19,822.13 20,887.00 45 4 2 Va n g u a r d I n t e r n a t i o n a l V a l u e 0. 0 0 0. 0 0 (1 2 2 , 2 9 8 . 6 4 ) 0. 0 0 0. 0 0 58,577.90 0.00 0.00 17,738.38 (45,982.36) 45 5 4 Rh u m b L i n e A d v i s e r s 1, 3 0 1 , 7 8 4 . 8 3 66 7 , 3 9 8 . 9 8 25 7 , 0 7 2 . 7 3 (9 8 6 , 1 1 8 . 9 2 ) 2, 0 2 8 , 1 8 7 . 0 4 (69,072.32)(143,443.26)549,691.00 (425,302.81)3,180,197.27 46 0 0 In t e r e s t & D i v i d e n d I n c o m e 45 , 5 9 7 . 9 2 54 , 6 1 2 . 5 7 21 8 , 7 4 3 . 5 6 46 , 2 2 7 . 5 6 53 , 0 2 4 . 9 1 87,279.81 49,220.42 58,121.00 95,403.01 708,230.76 47 0 0 Cl a s s A c t i o n S e t t l e m e n t s 0. 0 0 0. 0 0 0. 0 0 1, 5 6 6 . 6 5 0. 0 0 0.00 0.00 0.00 0.00 1,566.65 47 1 0 Se c u r i t i e s L i t i g a t i o n 0. 0 0 0. 0 0 11 4 . 3 2 0. 0 0 0. 0 0 0.00 0.00 0.00 0.00 114.32 48 0 0 Sa l e m T r u s t A d j u s t m e n t s 0. 0 0 0. 0 0 0. 0 0 0. 0 0 0. 0 5 0.00 0.00 0.00 0.00 0.05 To t a l I n c o m e 1, 6 4 4 , 3 0 0 . 7 1 1, 0 6 1 , 5 1 9 . 6 5 17 0 , 3 6 5 . 5 4 (1 6 4 , 9 2 7 . 5 4 ) 2, 6 4 4 , 2 4 2 . 1 2 387,421.45 399,582.74 854,736.86 (565,467.69)6,431,773.84 En d O c t o b e r En d N o v e m b e r En d D e c e m b e r En d J a n u a r y En d F e b r u a r y End March End April End May End June Year-To-Date Ex p e n s e : 50 0 0 Be n e f i t P a y m e n t s 29 2 , 0 0 0 . 5 3 0. 0 0 14 8 , 4 6 7 . 2 8 14 8 , 4 8 2 . 5 9 14 8 , 4 8 2 . 5 9 148,482.59 155,738.53 179,257.10 187,097.37 1,408,008.58 50 1 0 Be n e f i c i a r y P a y m e n t s 14 , 5 7 2 . 7 8 0. 0 0 7, 2 8 6 . 3 9 7, 2 8 6 . 3 9 7, 2 8 6 . 3 9 7,286.39 7,286.39 7,286.39 7,286.39 65,577.51 50 2 0 Di s a b i l i t y P a y m e n t s 42 , 4 9 5 . 0 8 0. 0 0 22 , 7 3 5 . 1 4 22 , 7 3 5 . 1 4 22 , 7 3 5 . 1 4 22,735.14 22,735.14 22,735.14 22,735.14 201,641.06 53 0 0 DR O P D i s t r i b u t i o n s 38 , 0 0 0 . 0 0 65 , 0 0 0 . 0 0 25 , 0 0 0 . 0 0 15 0 , 0 0 0 . 0 0 11 , 5 2 0 . 0 0 0.00 80,000.00 92,000.00 404,000.00 865,520.00 53 1 0 DR O P D i s t r i b u t i o n s - M o n t h l y 3, 4 0 0 . 0 0 0. 0 0 1, 7 0 0 . 0 0 1, 7 0 0 . 0 0 1, 7 0 0 . 0 0 1,700.00 1,700.00 1,700.00 1,700.00 15,300.00 60 0 0 Cu s t o d i a n F e e s 0. 0 0 0. 0 0 4, 2 0 1 . 4 1 0. 0 0 0. 0 0 5,022.10 0.00 0.00 0.00 9,223.51 60 2 0 In v e s t m e n t C o n s u l t a n t F e e s 0. 0 0 0. 0 0 5, 3 0 4 . 0 0 0. 0 0 0. 0 0 5,304.00 0.00 0.00 0.00 10,608.00 60 4 0 In v e s t m e n t M a n a g e m e n t F e e s 0. 0 0 0. 0 0 42 , 5 1 8 . 7 2 0. 0 0 0. 0 0 45,022.49 0.00 0.00 11,013.19 98,554.40 61 0 0 Ac t u a r y F e e s 0. 0 0 0. 0 0 10 , 4 8 0 . 0 0 0. 0 0 0. 0 0 0.00 6,942.00 5,050.00 0.00 22,472.00 61 1 0 Ad m i n i s t r a t o r F e e s 2, 5 7 5 . 0 0 2, 5 9 7 . 8 0 2, 5 7 5 . 0 0 2, 5 7 5 . 0 0 2, 6 2 2 . 7 8 2,575.00 2,575.00 2,575.00 2,575.00 23,245.58 61 2 0 Au d i t o r F e e s 0. 0 0 0. 0 0 0. 0 0 5, 0 0 0 . 0 0 0. 0 0 6,000.00 0.00 0.00 1,800.00 12,800.00 61 3 0 Ba n k C h a r g e s 19 9 . 3 0 13 8 . 9 0 15 8 . 4 1 18 3 . 6 2 12 2 . 3 8 153.91 167.79 184.56 203.65 1,512.52 61 5 0 Le g a l F e e s 0. 0 0 66 7 . 5 0 89 8 . 4 3 29 1 . 9 0 84 9 . 3 0 1,159.65 449.65 815.70 1,811.76 6,943.89 61 6 0 Po s t a g e 0. 0 0 0. 0 0 0. 0 0 0. 0 0 39 . 1 7 29.10 0.00 0.00 30.66 98.93 62 0 0 Tr u s t e e E x p e n s e - C o n f e r e n c e 3, 9 2 0 . 8 1 0. 0 0 26 9 . 1 1 1, 3 8 6 . 4 1 0. 0 0 2,081.71 2,044.40 896.91 604.63 11,203.98 62 0 0 Tr u s t e e E x p e n s e - C o n f e r e n c e 3, 1 5 0 . 0 0 30 . 0 0 60 . 0 0 0. 0 0 0. 0 0 0.00 0.00 0.00 0.00 3,240.00 62 2 0 An n u a l M e m b e r s h i p F e e s 0. 0 0 60 0 . 0 0 0. 0 0 0. 0 0 0. 0 0 0.00 0.00 0.00 0.00 600.00 63 0 0 Fi d u c i a r y L i a b i l i t y I n s u r a n c e 92 7 . 8 1 0. 0 0 5, 5 7 9 . 2 3 0. 0 0 0. 0 0 0.00 0.00 0.00 0.00 6,507.04 63 2 0 Ge n e r a l L i a b i l i t y I n s u r a n c e 0. 0 0 0. 0 0 0. 0 0 0. 0 0 0. 0 0 0.00 0.00 1,185.00 0.00 1,185.00 66 0 0 Mi s c e l l a n e o u s E x p e n s e 0. 0 0 0. 0 0 0. 0 0 0. 0 0 0. 0 0 0.00 0.00 200.00 0.00 200.00 To t a l E x p e n s e 40 1 , 2 4 1 . 3 1 69 , 0 3 4 . 2 0 27 7 , 2 3 3 . 1 2 33 9 , 6 4 1 . 0 5 19 5 , 3 5 7 . 7 5 247,552.08 279,638.90 313,885.80 640,857.79 2,764,442.00 Re s e r v e F u n d L a s t P e r i o d 72 , 6 2 6 , 4 6 5 . 1 5 73 , 8 6 9 , 5 2 4 . 5 5 74 , 8 6 2 , 0 1 0 . 0 0 74 , 7 5 5 , 1 4 2 . 4 2 74 , 2 5 0 , 5 7 3 . 8 3 76,699,458.20 76,839,327.57 76,959,271.41 77,500,122.47 72,626,465.15 Ba l a n c e T o / F r o m R e s e r v e 1, 2 4 3 , 0 5 9 . 4 0 99 2 , 4 8 5 . 4 5 (1 0 6 , 8 6 7 . 5 8 ) (5 0 4 , 5 6 8 . 5 9 ) 2, 4 4 8 , 8 8 4 . 3 7 139,869.37 119,943.84 540,851.06 (1,206,325.48)3,667,331.84 TO T A L R E S E R V E F U N D 73 , 8 6 9 , 5 2 4 . 5 5 74 , 8 6 2 , 0 1 0 . 0 0 74 , 7 5 5 , 1 4 2 . 4 2 74 , 2 5 0 , 5 7 3 . 8 3 76 , 6 9 9 , 4 5 8 . 2 0 76,839,327.57 76,959,271.41 77,500,122.47 76,293,796.99 76,293,796.99 Pa l m B e a c h G a r d e n s P o l i c e St a t e m e n t o f I n c o m e a n d E x p e n s e FY 2 0 1 5 Ac c o u n t D e s c r i p t i o n Ac c o u n t D e s c r i p t i o n Palm Beach Gardens Police Officers’ Retirement Fund Investment Review Period Ending June 30, 2015 Palm Beach Gardens Police Officers’ Retirement Fund Page 2 Page 6 Page 6 Page 8 Page 9 Page 10 Page 14 Page 23Purchases and Sales Portfolio Holdings Equity Sector Allocation and Returns Top Ten Holdings Fixed Income Characteristics Commentary Period Ending 6/30/2015 Table of Contents Total Return Summary and Portfolio Allocation Performance Returns for Various Periods Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 2Q15 Large Cap Growth Portfolio Manager Commentary In the month of April, the markets we saw a reversal in the overall trend of the market as sectors such as Energy, +8.53%, bounced back after being beaten down over the past year. These quick recoveries are something that happen regularly, however, tend to not be long lasting as the overall fundamentals of the underlying securities take hold. The Large Growth Strategy returned -0.44% vs. 0.50%for the Russell 1000 Growth Index. Year to date the strategy has returned 5.06% versus 4.36%for the index.An underweight to the Energy sector hurt relative performance the most due to the sharp rally in the sector. Positions in Tesoro, -5.98%, and Philips 66,+0.90%, were the main individual detractors. Positive stock selection occurred within Staples including a new position in Pilgrims Pride, +9.34%, and Tyson Foods, +3.13%.We also took a new position in Invesco due to its positive growth and value characteristics and its strong position in the ETF market, which is the highest growth area of Financials. During May, the Large Growth Strategy returned 3.43% vs. 1.41%for the Russell 1000 Growth Index. The strategy benefitted the most from strong stock selection within Health Care, Centene +21.54% and Cigna, +12.99%, and Technology, Fireeye +12.76% and Zebra Technology +19.07%.An underweight to the Energy sector, -5.47%, also added to returns. June saw the Large Growth Strategy returning -1.19% vs. -1.75%for the Russell 1000 Growth Index. Year to date the strategy has returned 7.32% versus 3.96% for the index. The strategy benefitted the most from strong stock selection within Consumer Staples, CVS +2.44%, and Healthcare, Cigna +15.03% and HCA +10.86%. The strategy continues to have a strong focus on growth areas of Technology, Healthcare, and Consumer Discretionary. These positions are based on strong rankings from our diversified multi factor model which aims to position the strategy in higher growth, momentum, and valuation stocks and away from more highly levered large capitalization names. Sincerely, Highland Capital Management 2 Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 2Q15 Fixed Income Portfolio Manager Commentary Since February, heightened volatility in the Treasury market has directly impacted performance and liquidity in the bond market. The 10 year Treasury traded as low as 1.68%on February 2nd of this year because of soft US economic data and a drop in interest rates across Europe.At quarter end, the 10 year Treasury increased to 2.35%or approximately 70 basis points in a short period of time. With the rise in interest rates, short to intermediate bonds have outperformed longer dated securities by a wide margin. The Barclays US Gov/Credit Intermediate index lost -0.62% during the quarter, bringing year-to- date performance to +0.82%. The central theme during the quarter was a steepening yield curve which caused long dated securities to underperform. Aggressive steepening in the yield curve caused long dated securities to underperform; declining 7.57% and reversing strong gains from earlier this year. Investment grade issuance is tracking 14%higher year-over-year with total supply expected to exceed $1.3 trillion. Acquisition financing,up a staggering 582%since 2014,is the primary driver of supply growth (Examples: Actavis $21bn and AbbVie $16.7bn). Year-to-date issuance in healthcare has nearly matched the total for all of 2014.Additionally, corporate CFO’s have decided to take advantage of the historically low 30-year treasury levels and have locked in long term financing. Long-dated issuance is up 41%year-to-date. The strong level of corporate bond issuance has been a contributing factor to recent underperformance in this sector as the market is forced to digest the volume. Recent volatility and spread widening within investment grade corporates has allowed Highland to deploy capital in certain areas that have underperformed; offering attractive total return potential.We have been forced to spend more time researching one-off credit opportunities which might have an embedded catalyst to unlock additional value.We have seen these opportunities prevalent within technology, healthcare and energy. A couple of years ago we noticed most sectors trading in tandem with high cross correlations; this relationship has broken down over the past six months. Credit analysis/selection can and will differentiate portfolio performance for the foreseeable future; allowing active managers to generate additional alpha. Recent economic data has started to improve in the second quarter; however the Federal Reserve continues to take a very conservative approach towards increasing interest rates.It is possible the fed funds rate will increase in September; however we are confident that the Federal Reserve will take a slow and measured pace before getting back to historical norms with fed funds rate. We have received numerous questions this quarter about liquidity issues facing the bond market in light of several articles written about the subject. Lack of liquidity is not a new concept to our firm and we have been dealing with this for several years.Due to regulatory constraints, dealers have been reducing inventory since 2009 which has altered the liquidity profile in the bond market. Fortunately, there are new forms of liquidity available for buy-side firms.We use electronic trading platforms that allow us to trade directly with other buy- side firms. This year at least 25%of our trades are done away from the street. Execution (i.e. bid/ask spread) has improved with increased competition. Additionally, Highland Capital is able to now buy on the bid side of the market. This technology, clarity around pricing and regulatory scrutiny with the banks will change how investment firms gain liquidity in the bond market. This is prevalent for investment grade corporates, agencies and treasuries. Ultimately investment firms are relying less on the broker-dealer model to execute trades because of the streets reluctance to hold bonds in inventory.It has forced our firm to trade in the most liquid bonds available otherwise investors might be forced to hold bonds to maturity and sacrifice various total return trading strategies. As always,we appreciate the confidence that you have placed in us to manage your assets, and we welcome any questions that you may have regarding your portfolio. Sincerely, Highland Capital Management 4 Palm Beach Gardens Police Officers’ Retirement Fund Contributions Withdrawals Gain/Loss Cumulative Return Annualized Return Quarter (4/1/15 - 6/30/15) Fiscal Year to Date (10/1/14 - 6/30/15) Five Year (7/1/10 - 6/30/15) Contributions Withdrawals Gain/Loss Cumulative Return Annualized Return Quarter (4/1/15 - 6/30/15) Fiscal Year to Date (10/1/14 - 6/30/15) Five Year (7/1/10 - 6/30/15) $134,762 0.89%------- $15,767,398 $17,640,434 $1,873,036 $10,037,615 -$10,468,541 $2,303,963 15.68%2.96% $16,416,087 $17,640,434 $1,224,347 $1,100,000 -$10,415 $400,000 -$3,917 -$278,436 -1.56%------- Beginning Market Value Ending Market Value Difference $17,522,787 $17,640,434 $117,647 Period Ending 6/30/2015 Beginning Market Value Ending Market Value Difference Total Return Summary - Growth $159,698 1.60%------- $8,971,493 $8,702,642 -$268,851 $0 -$1,392,698 $1,123,847 12.99% $9,444,048 $8,702,642 -$741,407 $0 -$901,105 ------- $4,697,359 $8,702,642 $4,005,283 $1,566,623 -$3,233,981 $5,672,640 115.33%16.58% Total Return Summary - Fixed Income 6 Palm Beach Gardens Police Officers’ Retirement Fund Cash Cash $80,160 0.9% Growth Growth $8,622,482 99.1% Total Total $8,702,642 100.0% Cash Cash $485,801 2.8% Core Fixed Core Fixed $17,154,633 97.2% Total Total $17,640,434 100.0% $17,211,502 98.2% $17,522,787 100.0% As of 12/31/2013 As of 3/31/2014 $311,285 1.8% $9,379,290 99.3% $9,444,048 100.0% Asset Allocation - Fixed As of 3/31/2015 As of 6/30/2015 As of 12/31/2013 As of 3/31/2014 $64,758 0.7% Period Ending 6/30/2015 Asset Allocation - Growth As of 3/31/2015 As of 6/30/2015 Cash Growth Cash Growth Cash Core Fixed Cash Core Fixed 7 Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 Quarter Fiscal Year to Date Five Year (Annualized) (4/1/15 - 6/30/15)(10/1/14 - 6/30/15)(7/1/10 - 6/30/15) Growth 1.60%12.99%16.58% R1000G 0.12%8.94%18.59% Core Fixed -1.56%0.89%2.96% BCAG -1.68%1.69%3.35% BCGC -2.10%1.52%3.57% Performance Returns for Various Periods -4%-2%0%2% Growth Core Fixed 0%5%10%15% Growth Core Fixed 0%5%10%15%20% Growth Core Fixed 8 Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 Domestic Equity Sector Allocation vs. R1000G Domestic Equity Quarterly Sector Returns vs. R1000G 3.9 1.9 13.1 22.4 6.7 17.2 3.4 29.4 2.0 0.01.0 3.9 11.2 21.0 10.5 18.3 5.4 27.0 1.8 0.0 0% 5% 10% 15% 20% 25% 30% 35% ENERGY MATERIALS INDUSTRIALS CONS. DISCRETION CONSUMER STAPLES HEALTH CARE FINANCIALS INFO. TECH.TELECOM.UTILITIES -0.8 -3.1 -1.1 -0.4 1.9 8.5 1.2 2.4 -2.3 0.00.1 -0.5 -5.0 2.9 -1.9 4.0 -2.2 0.3 -3.2 -12.4-15% -10% -5% 0% 5% 10% ENERGY MATERIALS INDUSTRIALS CONS. DISCRETION CONSUMER STAPLES HEALTH CARE FINANCIALS INFO. TECH.TELECOM.UTILITIES Account R1000G 9 Palm Beach Gardens Police Officers’ Retirement Fund Security Weight %QTD Return %Security Weight %QTD Return %Security Weight %QTD Return % APPLE COMPUTER 5.13 1.45 APPLE INC 3.95 1.22 APPLE INC 6.82 1.22 LOWE'S COMPANIES INC.2.64 -9.52 MICROSOFT CORP 1.95 9.30 MICROSOFT CORP 1.91 9.30 HOME DEPORT INC.2.58 -1.71 EXXON MOBIL CORP 1.90 -1.29 WALT DISNEY CO/THE 1.83 8.82 AMERISOURCEBERGEN 2.58 -5.92 JOHNSON & JOHNSON 1.48 -2.41 FACEBOOK INC-A 1.75 4.32 GILEAD SCIENCES INC.2.27 20.20 GENERAL ELECTRIC CO 1.46 7.99 VERIZON COMMUNICATIONS INC 1.66 -3.08 CVS CORPORATION 2.20 1.72 WELLS FARGO & CO 1.44 4.09 GILEAD SCIENCES INC 1.62 19.75 FACEBOOK INC.2.17 3.83 JPMORGAN CHASE & CO 1.37 12.60 AMAZON.COM INC 1.56 16.66 HONEYWELL INTERNATIONAL INC.2.17 -1.56 BERKSHIRE HATHAWAY INC-CL B 1.36 -5.69 GOOGLE INC-CL A 1.47 -2.64 FIREEYE INC.1.98 25.37 PROCTER & GAMBLE CO/THE 1.16 -3.73 COCA-COLA CO/THE 1.45 -2.46 CIGNA CORPORATION 1.95 24.06 PFIZER INC 1.13 -2.82 GOOGLE INC-CL C 1.45 -4.76 Period Ending 6/30/2015 Account S&P 500 Russell 1000 Growth Top Ten Domestic Equity Holdings 25.68 74.32 TOP TEN HOLDINGS OTHER HOLDINGS 17.20 82.80 TOP TEN HOLDINGS OTHER HOLDINGS 21.52 78.48 TOP TEN HOLDINGS OTHER HOLDINGS 10 Palm Beach Gardens Police Officers’ Retirement Fund Current Yield:2.75%Current Yield:2.89%Current Yield:3.10% Corporate Bonds 70.5%Corporate Bonds 34.4%Corporate Bonds 23.9% US Treasuries 6.5%US Treasuries 52.2%US Treasuries 36.1% Gov't Sponsored 13.0%Gov't Sponsored 13.4%Gov't Sponsored 9.3% Mortgage Pools 6.0%Total 100%CMBS 1.9% Other 4.1%ABS 0.6% Total 100%US MBS 28.1% Total 100% Period Ending 6/30/2015 Fixed Income Sector Allocation Fixed Income Portfolio Corporate Bonds US Treasuries Gov't Sponsored Mortgage Pools Other Barclays Capital Government/Credit Index Corporate Bonds US Treasuries Gov't Sponsored Barclays Capital Aggregate Index Corporate Bonds US Treasuries Gov't Sponsored CMBS ABS US MBS 11 Palm Beach Gardens Police Officers’ Retirement Fund Average Quality:A1 Average Quality:AA2/AA3 Average Quality:AA1/AA2 Aaa 24.8%Aaa 59.4%Aaa 71.4% Aa 9.1%Aa 6.1%Aa 4.4% A 55.2%A 16.4%A 11.5% Baa 2.9%Baa 18.2%Baa 12.7% Other 8.0%Other 0.0%Other 0.0% Total 100%Total 100%Total 100% Period Ending 6/30/2015 Bond Quality Allocation Fixed Income Portfolio Aaa Aa A Baa Other Barclays Capital Government/Credit Index Aaa Aa A Baa Other Barclays Capital Aggregate Index Aaa Aa A Baa Other 12 Palm Beach Gardens Police Officers’ Retirement Fund Average Maturity:7.97 Years Average Maturity:8.33 Years Average Maturity:7.87 Years <3 Yrs 25.9%<3 Yrs 32.4%<3 Yrs 23.9% 3-5 Yrs 19.0%3-5 Yrs 20.8%3-5 Yrs 19.9% 5-7 Yrs 16.0%5-7 Yrs 13.6%5-7 Yrs 18.5% 7-10 Yrs 21.1%7-10 Yrs 12.9%7-10 Yrs 22.6% >10 Yrs 18.0%>10 Yrs 20.2%>10 Yrs 15.0% Total 100%Total 100%Total 100% Period Ending 6/30/2015 Bond Maturity Allocation Fixed Income Portfolio <3 Yrs 3-5 Yrs 5-7 Yrs 7-10 Yrs >10 Yrs Barclays Capital Government/Credit Index <3 Yrs 3-5 Yrs 5-7 Yrs 7-10 Yrs >10 Yrs Barclays Capital Aggregate Index <3 Yrs 3-5 Yrs 5-7 Yrs 7-10 Yrs >10 Yrs 13 Palm Beach Gardens Police Officers’ Retirement Fund Average Duration:5.49 Average Duration:6.09 Average Duration:5.63 <3 Yrs 26.5%<3 Yrs 33.4%<3 Yrs 27.6% 3-5 Yrs 28.2%3-5 Yrs 22.6%3-5 Yrs 31.2% 5-7 Yrs 20.9%5-7 Yrs 14.4%5-7 Yrs 19.8% 7-10 Yrs 15.1%7-10 Yrs 11.5%7-10 Yrs 8.8% >10 Yrs 9.4%>10 Yrs 18.1%>10 Yrs 12.6% Total 100%Total 100%Total 100% Period Ending 6/30/2015 Duration Allocation Fixed Income Portfolio <3 Yrs 3-5 Yrs 5-7 Yrs 7-10 Yrs >10 Yrs Barclays Capital Government/Credit Index <3 Yrs 3-5 Yrs 5-7 Yrs 7-10 Yrs >10 Yrs Barclays Capital Aggregate Index <3 Yrs 3-5 Yrs 5-7 Yrs 7-10 Yrs >10 Yrs 0.2% 0.6% 1.0% 1.4% 1.8% 6/30/2013 9/30/2013 12/31/2013 3/31/2014 6/30/2014 9/30/2014 12/31/2014 3/31/2015 6/30/2015 Portfolio Duration vs. Index Duration (Ratio)Index Acct 14 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date CASH AND EQUIVALENTS (USD) Cash Account 77,370.20 77,370.20 0.9 3.2 Dividend Accrual 2,789.45 2,789.45 0.0 ? 80,159.65 80,159.65 0.9 3.1 COMMON STOCK (USD) Energy 930 PHILLIPS 66 40.37 37,541.40 80.56 74,920.80 0.9 2.5 1490 SCHLUMBERGER LTD 105.87 157,743.62 86.19 128,423.10 1.5 1.9 675 SM ENERGY CO 67.96 45,870.50 46.12 31,131.00 0.4 0.4 1100 TESORO CORP 74.20 81,614.50 84.41 92,851.00 1.1 2.0 322,770.03 327,325.90 3.8 1.9 Materials 755 VALSPAR CORP 82.96 62,631.25 81.82 61,774.10 0.7 1.5 1430 WESTLAKE CHEMICAL CORP 42.78 61,181.48 68.59 98,083.70 1.1 1.0 123,812.73 159,857.80 1.8 1.2 Industrials 1430 A.O. SMITH CORP 45.01 64,362.58 71.98 102,931.40 1.2 1.1 420 AMERCO 208.02 87,369.62 326.91 137,302.20 1.6 ? 840 BOEING COMPANY 75.66 63,556.84 138.72 116,524.80 1.3 2.1 2360 DELTA AIR LINES INC 19.10 45,085.91 41.08 96,948.80 1.1 0.9 1770 HONEYWELL INTERNATIONAL INC 66.55 117,798.46 101.97 180,486.90 2.1 2.0 3370 MASCO CORP 19.60 66,047.28 26.67 89,877.90 1.0 1.3 930 MIDDLEBY CORP 86.92 80,834.76 112.23 104,373.90 1.2 ? 2705 QUANTA SERVICES INC 37.02 100,128.55 28.82 77,958.10 0.9 ? 840 UNION PACIFIC CORP 91.02 76,458.10 95.37 80,110.80 0.9 2.1 1185 WABTEC CORP 57.04 67,590.74 94.24 111,674.40 1.3 0.1 769,232.84 1,098,189.20 12.6 1.0 Consumer Discretionary 1935 AUTONATION INC 45.00 87,082.55 62.98 121,866.30 1.4 0.0 1825 BORGWARNER INC 64.26 117,277.60 56.84 103,733.00 1.2 0.9 1535 CABELA'S INC 56.19 86,249.04 49.98 76,719.30 0.9 ? 1935 COMCAST CORP CL A 47.57 92,043.69 60.14 116,370.90 1.3 1.5 700 FOOT LOCKER INC 57.33 40,134.08 67.01 46,907.00 0.5 0.3 Period Ending 6/30/2015 Portfolio Holdings - Growth 15 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date Period Ending 6/30/2015 Portfolio Holdings - Growth 4875 HANESBRANDS INC 18.12 88,323.79 33.32 162,435.00 1.9 1.2 1430 HASBRO INC 41.72 59,666.21 74.79 106,949.70 1.2 2.3 1935 HOME DEPOT INC 63.30 122,481.19 111.13 215,036.55 2.5 1.7 3285 LOWE'S COMPANIES INC 38.41 126,162.40 66.97 219,996.45 2.5 1.4 1230 PENSKE AUTOMOTIVE GROUP INC 46.86 57,634.84 52.11 64,095.30 0.7 1.7 765 POLARIS INDUSTRIES INC 142.59 109,082.50 148.11 113,304.15 1.3 1.4 1310 ROSS STORES INC 52.02 68,143.58 48.61 63,679.10 0.7 1.9 2690 STARBUCKS CORP 29.20 78,544.76 53.61 144,224.35 1.7 1.9 295 TESLA MOTORS INC 240.60 70,977.03 268.26 79,136.70 0.9 0.0 1935 THOR INDUSTRIES INC 53.13 102,813.21 56.28 108,901.80 1.3 1.9 760 WHIRLPOOL CORP 135.19 102,744.63 173.05 131,518.00 1.5 0.4 1,409,361.09 1,874,873.60 21.5 1.2 Consumer Staples 890 CONSTELLATION BRANDS INC 87.72 78,072.85 116.02 103,257.80 1.2 0.0 1770 CVS CORPORATION 59.63 105,538.73 104.88 185,637.60 2.1 1.0 3635 PILGRIMS PRIDE CORP 24.09 87,556.61 22.97 83,495.95 1.0 ? 1995 TYSON FOODS INC-CL A 39.69 79,177.16 42.63 85,046.85 1.0 0.9 1185 WALGREENS BOOTS ALLIANCE INC 59.80 70,863.47 84.44 100,061.40 1.1 1.6 421,208.82 557,499.60 6.4 0.8 Health Care 2020 AMERISOURCEBERGEN CORP 46.20 93,320.77 106.34 214,806.80 2.5 1.1 1685 CENTENE CORP 45.33 76,379.28 80.40 135,474.00 1.6 ? 1010 CIGNA CORPORATION 41.32 41,729.57 162.00 163,620.00 1.9 0.0 1030 EXPRESS SCRIPTS HOLDING COMPANY 74.41 76,639.72 88.94 91,608.20 1.1 0.0 1615 GILEAD SCIENCES INC 79.05 127,669.37 117.08 189,084.20 2.2 0.0 875 HCA HOLDINGS INC 74.52 65,208.06 90.72 79,380.00 0.9 ? 860 INCYTE CORP 89.26 76,761.11 104.21 89,620.60 1.0 ? 505 McKESSON HBOC INC 90.60 45,751.03 224.81 113,529.05 1.3 0.4 1350 MEDNAX INC 53.23 71,860.03 74.11 100,048.50 1.1 0.0 905 MYLAN NV 57.50 52,037.59 67.86 61,413.30 0.7 0.0 615 THERMO FISHER SCIENTIFIC INC 128.65 79,122.39 129.76 79,802.40 0.9 0.5 265 UNITED THERAPEUTICS 161.71 42,852.70 173.95 46,096.75 0.5 ? 550 UNIVERSAL HEALTH SERVICES 116.46 64,052.84 142.10 78,155.00 0.9 0.3 913,384.47 1,442,638.80 16.6 0.2 16 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date Period Ending 6/30/2015 Portfolio Holdings - Growth Financials 475 AFFILIATED MANAGERS GROUP INC 93.45 44,387.96 218.60 103,835.00 1.2 ? 255 BLACKROCK INC 303.41 77,369.17 345.98 88,224.90 1.0 2.2 1220 CBRE GROUP INC 32.70 39,898.27 37.00 45,140.00 0.5 ? 1005 SEI INVESTMENTS CO 39.55 39,744.23 49.03 49,275.15 0.6 2.0 201,399.64 286,475.05 3.3 1.0 Information Technology 2155 AKAMAI TECHNOLOGIES INC 66.72 143,791.52 69.82 150,462.10 1.7 ? 3432 APPLE COMPUTER 92.11 316,126.19 125.42 430,458.60 4.9 1.5 2275 COGNIZANT TECHNOLOGY SOLUTIONS CORP 50.63 115,183.76 61.09 138,979.75 1.6 ? 1475 EBAY INC 45.30 66,823.00 60.24 88,854.00 1.0 0.0 2960 EMC CORP-MASS 27.51 81,424.58 26.39 78,114.40 0.9 1.7 2105 FACEBOOK INC 70.95 149,343.22 85.76 180,535.32 2.1 0.0 3395 FIREEYE INC 37.33 126,729.88 48.91 166,049.45 1.9 0.0 197 GOOGLE INC CL A 534.83 105,361.28 540.04 106,387.88 1.2 0.0 199 GOOGLE INC CL C 532.19 105,906.47 520.51 103,581.58 1.2 0.0 2815 INTEL CORPORATION 34.50 97,128.48 30.41 85,618.22 1.0 3.0 1680 MASTERCARD INC 67.86 114,008.04 93.48 157,046.40 1.8 0.5 2480 MICROSOFT CORPORATION 23.37 57,947.60 44.15 109,492.00 1.3 2.5 3795 ORACLE CORPORATION 36.12 137,088.80 40.30 152,938.50 1.8 1.2 525 PALO ALTO NETWORKS INC 168.58 88,507.12 174.70 91,717.50 1.1 0.0 1460 QUALCOMM INC 79.27 115,739.31 62.63 91,439.80 1.1 2.7 825 SKYWORKS SOLUTIONS INC 88.02 72,612.62 104.10 85,882.50 1.0 0.7 2030 VISA INC 29.58 60,044.15 67.15 136,314.50 1.6 2.4 960 ZEBRA TECHNOLOGIES CORP 82.38 79,083.94 111.05 106,608.00 1.2 ? 2,032,849.97 2,460,480.51 28.3 0.9 Telecommunication Services 1625 LEVEL 3 COMMUNICATIONS INC 50.06 81,340.03 52.67 85,588.75 1.0 ? 1715 VERIZON COMMUNICATIONS 50.31 86,284.22 46.61 79,936.15 0.9 4.5 167,624.25 165,524.90 1.9 2.2 6,361,643.85 8,372,865.36 96.2 0.9 INTERNATIONAL EQUITY (USD) Health Care 755 MALLINCKRODT PLC 110.55 83,467.29 117.72 88,878.60 1.0 0.0 17 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date Period Ending 6/30/2015 Portfolio Holdings - Growth Financials 1575 INVESCO LTD 40.44 63,700.40 37.49 59,046.75 0.7 2.7 Information Technology 765 AVAGO TECHNOLOGIES LTD 112.75 86,255.28 132.93 101,691.45 1.2 1.1 233,422.97 249,616.80 2.9 1.1 6,675,226.47 8,702,641.81 100.0 1.0 TOTAL PORTFOLIO 6,675,226.47 8,702,641.81 100.0 1.0 18 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date CASH AND EQUIVALENTS (USD) Cash Account 485,800.58 485,800.58 2.8 3.2 CORPORATE BONDS (USD) 150000 SAN DIEGO GAS & ELECTRIC 111.89 167,829.00 101.62 152,435.10 0.9 5.2 AA2 5.300%11/15/15 150000 MONSANTO CO 99.79 149,680.50 101.26 151,892.70 0.9 2.7 A3 2.750%4/15/16 165000 FIFTH THIRD BANK 100.44 165,719.40 99.78 164,632.54 0.9 1.2 A3 1.150%11/18/16 240000 AFLAC INC 105.36 252,876.00 102.35 245,652.00 1.4 2.6 A3 2.650%2/15/17 75000 BANK OF NOVA SCOTIA 99.72 74,792.25 99.94 74,958.45 0.4 0.8 AA2 0.800%3/17/17 100000 NATIONAL RURAL UTIL 99.68 99,680.00 107.36 107,364.60 0.6 5.1 A1 5.450%4/10/17 80000 AMERICAN EXPRESS CREDIT 99.76 79,804.80 99.62 79,698.80 0.5 1.1 A2 1.130%6/5/17 320000 FRANKLIN RESOURCES INC 100.65 322,083.20 100.03 320,103.36 1.8 1.4 A1 1.380%9/15/17 40000 GENERAL ELEC CAP CORP 100.86 40,345.20 100.62 40,247.04 0.2 1.6 A1 1.600%11/20/17 160000 AMAZON.COM INC 98.75 158,001.60 99.54 159,267.52 0.9 1.2 Baa1 1.200%11/29/17 140000 AT&T INC 99.36 139,108.20 99.34 139,080.90 0.8 1.4 A3 1.400%12/1/17 80000 WALT DISNEY COMPANY 99.54 79,635.20 99.94 79,953.04 0.5 1.1 A2 1.100%12/1/17 320000 INTEL CORP 99.91 319,718.40 99.96 319,886.40 1.8 1.4 A1 1.350%12/15/17 335000 BANK OF NEW YORK MELLON 99.86 334,520.95 99.64 333,793.66 1.9 1.3 A1 1.300%1/25/18 30000 JPMORGAN CHASE & CO 100.53 30,159.90 100.31 30,092.52 0.2 1.8 A3 1.800%1/25/18 200000 FIFTH THIRD BANK 100.00 200,000.00 99.26 198,527.00 1.1 1.5 A3 1.450%2/28/18 115000 CONS EDISON CO OF NY 99.96 114,949.40 111.37 128,076.07 0.7 5.3 A3 5.850%4/1/18 85000 EMC CORP 101.18 86,000.45 100.19 85,164.73 0.5 1.9 A1 1.880%6/1/18 90000 BB&T CORPORATION 101.37 91,237.50 101.10 90,986.40 0.5 2.0 A2 2.050%6/19/18 160000 ORACLE CORP 100.86 161,374.40 101.49 162,378.40 0.9 2.3 A1 2.380%1/15/19 115000 CHEVRON CORP 99.97 114,964.35 110.54 127,123.07 0.7 4.5 AA1 4.950%3/3/19 410000 AMERICAN EXPRESS CREDIT 99.63 408,495.30 100.17 410,690.44 2.3 2.2 A2 2.250%8/15/19 30000 COSTCO WHOLESALE CORP 100.36 30,109.50 98.93 29,679.90 0.2 1.7 A1 1.700%12/15/19 120000 BB&T CORP 99.97 119,968.80 100.22 120,268.80 0.7 2.4 A2 2.450%1/15/20 345000 JPMORGAN CHASE & CO 100.00 345,000.00 98.27 339,025.98 1.9 2.3 A3 2.250%1/23/20 140000 BAXTER INTERNATIONAL INC 99.61 139,456.80 107.01 149,811.20 0.8 4.0 A3 4.250%3/15/20 185000 KEY BANK NA 101.11 187,057.20 99.15 183,430.09 1.0 2.3 A3e 2.250%3/16/20 85000 GOLDMAN SACHS GROUP INC 100.00 85,000.00 99.50 84,574.06 0.5 2.6 Baa1 2.600%4/23/20 100000 PRECISION CASTPARTS CORP 99.99 99,990.00 99.50 99,504.30 0.6 2.3 A2 2.250%6/15/20 155000 GEORGE WASHINGTON UNIVERSITY 100.00 155,000.00 111.67 173,087.26 1.0 4.4 A1 4.900%9/15/20 50000 GENERAL ELECTRIC CAP CORP 103.86 51,930.00 110.10 55,050.15 0.3 4.2 A1 4.630%1/7/21 210000 E.I. DU PONT DE NEMOURS 105.99 222,570.60 104.76 220,002.93 1.2 3.5 A3 3.630%1/15/21 45000 WELLS FARGO & COMPANY 101.11 45,498.60 101.63 45,733.36 0.3 3.0 A2 3.000%1/22/21 Period Ending 6/30/2015 Portfolio Holdings - Fixed 19 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date Period Ending 6/30/2015 Portfolio Holdings - Fixed 165000 TJX COS INC 100.59 165,976.80 101.19 166,970.59 0.9 2.7 A3 2.750%6/15/21 440000 TOTAL CAPITAL INTL SA 100.28 441,232.00 100.87 443,840.32 2.5 2.7 AA1 2.750%6/19/21 170000 EBAY INC 98.14 166,831.20 98.70 167,788.47 1.0 2.9 A2 2.880%8/1/21 130000 PRAXAIR INC 103.93 135,115.50 103.06 133,972.02 0.8 2.9 A2 3.000%9/1/21 280000 OCCIDENTAL PETROLEUM COR 99.76 279,324.50 100.25 280,700.28 1.6 3.1 A2 3.130%2/15/22 110000 PEPSICO INC 103.44 113,789.50 99.75 109,722.14 0.6 2.8 A1 2.750%3/5/22 85000 ABBOTT LABORATORIES 99.02 84,163.60 97.70 83,044.83 0.5 2.6 A2 2.550%3/15/22 225000 UNITEDHEALTH GROUP INC 99.49 223,861.50 97.10 218,483.32 1.2 3.0 A3 2.880%3/15/22 135000 HOME DEPOT INC 99.63 134,503.20 98.35 132,774.25 0.8 2.7 A2e 2.630%6/1/22 360000 MICROSOFT CORP 100.32 361,159.20 95.43 343,555.20 1.9 2.2 Aaa 2.130%11/15/22 250000 CONOCOPHILLIPS COMPANY 98.36 245,895.00 95.02 237,542.00 1.3 2.5 A1 2.400%12/15/22 325000 METLIFE INC 99.49 323,342.50 98.92 321,494.22 1.8 3.1 A3 3.050%12/15/22 405000 JPMORGAN CHASE & CO 99.30 402,152.85 98.08 397,217.11 2.3 3.3 A3 3.200%1/25/23 255000 ST JUDE MEDICAL INC 102.97 262,573.50 98.60 251,428.47 1.4 3.3 Baa1 3.250%4/15/23 120000 ENTERGY MISSISSIPPI INC 97.82 117,379.20 98.25 117,900.60 0.7 3.2 A3 3.100%7/1/23 320000 DOMINION GAS HLDGS LLC 101.73 325,548.80 101.39 324,457.60 1.8 3.5 A2 3.550%11/1/23 260000 ROCKWELL COLLINS INC 107.63 279,848.40 102.84 267,387.64 1.5 3.6 A3 3.700%12/15/23 285000 BLACKROCK INC 99.67 284,048.10 101.64 289,670.86 1.6 3.4 A1 3.500%3/18/24 325000 SIMON PROPERTY GROUP LP 100.04 325,133.25 99.36 322,909.92 1.8 3.4 A2 3.380%10/1/24 85000 STATE STREET CORP 104.19 88,563.20 99.83 84,852.01 0.5 3.3 A1 3.300%12/16/24 265000 PEPSICO INC 99.58 263,897.60 95.57 253,254.67 1.4 2.9 A1e 2.750%4/30/25 100000 QUALCOMM INC 99.64 99,640.00 97.45 97,448.20 0.6 3.5 A1e 3.450%5/20/25 65000 EMERSON ELECTRIC CO 99.68 64,794.60 98.73 64,172.09 0.4 3.2 A2 3.150%6/1/25 65000 PRECISION CASTPARTS CORP 99.80 64,867.40 98.73 64,174.04 0.4 3.3 A2 3.250%6/15/25 285000 NORTHERN TRUST CORP 104.64 298,226.85 103.33 294,479.10 1.7 3.8 A3 3.950%10/30/25 260000 WELLS FARGO & CO 105.20 273,520.00 100.42 261,095.90 1.5 4.1 A3 4.100%6/3/26 115000 XTO ENERGY INC 133.74 153,801.00 133.92 154,003.17 0.9 4.8 6.380%6/15/38 345000 IBM CORP 102.36 353,135.10 90.16 311,059.93 1.8 4.4 Aa3 4.000%6/20/42 320000 GENERAL ELECTRIC CO 115.55 369,760.00 101.56 324,988.80 1.8 4.4 A1 4.500%3/11/44 170000 DOMINION GAS HLDGS LLC 108.64 184,689.70 94.26 160,236.39 0.9 4.9 A2 4.600%12/15/44 250000 ELI LILLY & CO 98.29 245,725.00 90.72 226,800.75 1.3 4.1 A2 3.700%3/1/45 Accrued Interest 78,722.82 0.4 12,205,056.55 12,088,320.56 68.5 3.0 MUNICIPAL BONDS (USD) 205000 FLORIDA ST HURRICANE CATASTROPHE FUND 98.00 200,900.00 101.96 209,009.80 1.2 2.9 AA3 3.000%7/1/20 140000 COMMONWEALTH FING AUTH PA REV 100.00 140,000.00 112.77 157,874.50 0.9 5.0 A2 5.650%6/1/24 20 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date Period Ending 6/30/2015 Portfolio Holdings - Fixed 238000 MASSACHUSETTS ST EDUCTNL FING AUTH 98.50 234,430.00 100.64 239,535.10 1.4 4.7 AA3 4.700%1/1/33 Accrued Interest 9,252.28 0.1 575,330.00 615,671.68 3.5 4.2 GOVERNMENT BONDS (USD) 420000 US TREASURY 99.81 419,212.50 100.45 421,903.02 2.4 0.9 AAA 0.880%6/15/17 75000 US TREASURY NOTE 99.67 74,753.91 100.03 75,023.40 0.4 1.0 Aaa 1.000%5/31/18 175000 US TREASURY NOTE 99.56 174,234.38 100.34 175,601.65 1.0 1.2 1.250%10/31/18 280000 US TREASURY NOTE 99.37 278,228.12 100.02 280,043.68 1.6 1.5 1.500%11/30/19 175000 US TREASURY N/B 100.50 175,875.00 88.01 154,014.00 0.9 2.8 AAA 2.500%2/15/45 Accrued Interest 2,550.52 0.0 1,122,303.91 1,109,136.27 6.3 1.4 GOVERNMENT SPONSORED BOND (USD) 230000 FREDDIE MAC 100.00 230,006.90 100.05 230,103.73 1.3 0.5 AAA 0.500%8/28/15 225000 FEDERAL HOME LOAN BANK 99.91 224,795.25 100.09 225,200.92 1.3 0.4 AAA 0.450%10/26/15 360000 FNMA 99.87 359,526.32 100.07 360,256.32 2.0 0.4 Aaa 0.380%12/21/15 205000 FEDERAL HOME LOAN BANK 99.63 204,245.60 99.98 204,965.35 1.2 0.8 AAA 0.750%4/17/17 315000 FANNIE MAE 99.75 314,212.50 100.29 315,906.25 1.8 1.0 AAA 1.000%8/8/18 215000 FANNIE MAE 99.99 214,978.50 99.60 214,141.07 1.2 1.2 AAA 1.150%10/30/18 215000 FREDDIE MAC 99.99 214,978.50 99.55 214,039.38 1.2 1.1 AAA 1.050%10/30/18 200000 FHLB 100.11 200,226.00 100.15 200,306.60 1.1 2.1 Aaa 2.100%3/30/20 190000 FFCB 100.00 190,000.00 98.55 187,242.53 1.1 2.0 AAA 1.950%10/13/20 75000 FFCB 100.04 75,030.00 99.58 74,686.05 0.4 2.5 Aaa 2.480%6/30/22 Accrued Interest 4,788.53 0.0 2,227,999.57 2,231,636.75 12.7 1.0 MORTGAGE POOLS (USD) 1101.66 GNJO M #781313 103.12 1,136.09 101.66 1,119.96 0.0 5.9 Aaa 6.000%7/15/16 5237.02 FNCI M #254371 99.56 5,214.11 102.92 5,389.68 0.0 5.3 Aaa 5.500%7/1/17 21510.14 FGCI #E01443 105.41 22,673.03 105.43 22,679.19 0.1 3.3 Aaa 3.500%7/1/18 418.96 FGCI N #B13455 99.71 417.73 104.30 436.98 0.0 4.3 Aaa 4.500%4/1/19 10317.62 FNCI N #725445 96.09 9,914.45 104.42 10,774.11 0.1 4.3 Aaa 4.500%5/1/19 8015.38 FNCI N #825335 97.31 7,799.97 104.89 8,407.02 0.0 3.8 Aaa 4.000%5/1/20 7419.77 FNCI N #255888 97.31 7,220.36 104.89 7,782.77 0.0 3.8 Aaa 4.000%8/1/20 3735.23 FNCI N #829053 97.00 3,623.17 104.85 3,916.50 0.0 3.8 Aaa 4.000%8/1/20 11348.14 FGCI #G12205 96.48 10,949.18 104.87 11,900.58 0.1 4.3 Aaa 4.500%6/1/21 21 Palm Beach Gardens Police Officers’ Retirement Fund Unit Total Market Pct.Cur.Moody's Coupon Maturity Quantity Security Cost Cost Price Value Assets Yield Ratings %Date Period Ending 6/30/2015 Portfolio Holdings - Fixed 637.82 FGCI N #G12323 95.88 611.51 104.93 669.25 0.0 4.3 Aaa 4.500%8/1/21 22568.69 GNSF M #552509 98.77 22,290.11 116.78 26,356.11 0.1 5.1 Aaa 6.000%4/15/32 6843.09 GNSF M #582153 99.83 6,831.33 116.39 7,964.92 0.0 5.2 Aaa 6.000%6/15/32 64181.375 FGLMC #G02268 102.08 65,515.19 114.97 73,786.95 0.4 5.7 Aaa 6.500%8/1/36 102958.942 GN POOL # 782119 107.08 110,246.51 114.52 117,909.87 0.7 5.2 Aaa 6.000%8/15/36 55179 FNCL # 256394 102.00 56,282.60 114.84 63,368.21 0.4 5.7 Aaa 6.500%9/1/36 49535.38 G2 POOL # 4194 106.12 52,569.42 112.66 55,807.42 0.3 4.9 Aaa 5.500%7/20/38 21878.46 G2 POOL # 4195 99.89 21,854.50 113.55 24,842.63 0.1 5.3 Aaa 6.000%7/20/38 83463.39 G2 POOL # 4447 104.81 87,480.07 111.38 92,958.00 0.5 4.5 Aaa 5.000%5/20/39 222787.43 G2 POOL # 4496 109.58 244,126.29 111.38 248,134.29 1.4 4.5 Aaa 5.000%7/20/39 77593.289 GNSF 5.5% POOL #714005 106.16 82,370.13 113.02 87,699.09 0.5 4.9 Aaa 5.500%10/15/39 131788.61 FG POOL #G05900 108.64 143,175.97 113.04 148,978.73 0.8 5.3 Aaa 6.000%3/1/40 Accrued Interest 4,037.58 0.0 962,301.71 1,024,919.83 5.8 4.9 CERTIFICATES OF DEPOSIT (USD) 85000 AMERICAN EXPR CENTURION 100.00 85,000.00 99.87 84,893.66 0.5 2.0 1.950%12/18/18 Accrued Interest 54.49 0.0 85,000.00 84,948.16 0.5 2.0 17,663,792.31 17,640,433.83 100.0 2.8 TOTAL PORTFOLIO 17,663,792.31 17,640,433.83 100.0 2.8 22 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission CANTOR FITZGERALD_O 6/2/15 6/5/15 560.00 PALO ALTO NETWORKS INC 168.58 94,407.60 0.02 11.20 EDGETRADE 2_O 4/7/15 4/10/15 840.00 POLARIS INDUSTRIES INC 142.59 119,776.86 0.01 8.40 4/8/15 4/13/15 725.00 ROSS STORES INC 104.04 75,426.10 0.01 7.25 4/16/15 4/21/15 830.00 VALSPAR CORP 82.96 68,852.90 0.01 8.30 264,055.86 0.01 23.95 JONES TRADING_O 4/7/15 4/10/15 4,010.00 PILGRIMS PRIDE CORP 24.09 96,589.27 0.02 80.20 MND PARTNERS_O 4/7/15 4/10/15 1,695.00 CABELA'S INC 56.19 95,239.17 0.04 67.80 4/15/15 4/20/15 1,740.00 INVESCO LTD 40.44 70,373.78 0.04 69.60 165,612.95 0.04 137.40 PURCHASES SUBTOTAL 620,665.68 0.02 252.75 0.02 252.75 Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 Purchases - Growth 23 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission CANTOR FITZGERALD_O 4/7/15 4/10/15 590.00 CBS CORP CL B 61.33 36,185.63 0.02 11.80 4/7/15 4/10/15 1,800.00 CBS CORP CL B 61.33 110,396.82 0.02 36.00 4/7/15 4/10/15 400.00 CBS CORP CL B 61.33 24,532.63 0.02 8.00 171,115.08 0.02 55.80 DONALDSON & CO. - DONALDSON_O 5/13/15 5/13/15 0.60 GOOGLE INC CL C 538.16 325.50 0.00 0.00 EDGETRADE 2_O 5/13/15 5/18/15 50.00 A.O. SMITH CORP 68.42 3,420.93 0.01 0.50 6/11/15 6/16/15 100.00 A.O. SMITH CORP 72.73 7,272.86 0.01 1.00 4/16/15 4/21/15 405.00 AFFILIATED MANAGERS GROUP INC 219.00 88,695.43 0.01 4.05 5/13/15 5/18/15 15.00 AFFILIATED MANAGERS GROUP INC 219.83 3,297.38 0.01 0.15 6/11/15 6/16/15 35.00 AFFILIATED MANAGERS GROUP INC 224.37 7,852.80 0.01 0.35 5/13/15 5/18/15 75.00 AKAMAI TECHNOLOGIES INC 75.93 5,694.64 0.01 0.75 6/11/15 6/16/15 150.00 AKAMAI TECHNOLOGIES INC 74.12 11,117.79 0.01 1.50 5/13/15 5/18/15 15.00 AMERCO 325.00 4,875.06 0.01 0.15 6/11/15 6/16/15 30.00 AMERCO 326.75 9,802.61 0.01 0.30 5/13/15 5/18/15 70.00 AMERISOURCEBERGEN CORP 114.80 8,035.85 0.01 0.70 6/11/15 6/16/15 140.00 AMERISOURCEBERGEN CORP 110.47 15,466.50 0.01 1.40 5/13/15 5/18/15 103.00 APPLE COMPUTER 126.45 13,024.11 0.01 1.03 5/13/15 5/18/15 16.00 APPLE COMPUTER 126.45 2,023.16 0.01 0.16 6/11/15 6/16/15 235.00 APPLE COMPUTER 128.69 30,241.59 0.01 2.35 5/13/15 5/18/15 65.00 AUTONATION INC 62.39 4,055.27 0.01 0.65 6/11/15 6/16/15 135.00 AUTONATION INC 63.62 8,588.54 0.01 1.35 5/13/15 5/18/15 25.00 AVAGO TECHNOLOGIES LTD 123.05 3,076.19 0.01 0.25 6/11/15 6/16/15 50.00 AVAGO TECHNOLOGIES LTD 141.99 7,099.36 0.01 0.50 5/13/15 5/18/15 10.00 BLACKROCK INC 363.98 3,639.83 0.01 0.10 6/11/15 6/16/15 15.00 BLACKROCK INC 357.33 5,360.00 0.01 0.15 5/13/15 5/18/15 30.00 BOEING COMPANY 146.00 4,379.91 0.01 0.30 6/11/15 6/16/15 60.00 BOEING COMPANY 143.09 8,585.24 0.01 0.60 5/13/15 5/18/15 65.00 BORGWARNER INC 60.67 3,943.47 0.01 0.65 6/11/15 6/16/15 125.00 BORGWARNER INC 60.81 7,601.11 0.01 1.25 5/13/15 5/18/15 55.00 CABELA'S INC 52.93 2,911.09 0.01 0.55 6/11/15 6/16/15 105.00 CABELA'S INC 52.06 5,466.19 0.01 1.05 5/13/15 5/18/15 40.00 CBRE GROUP INC 37.37 1,494.77 0.01 0.40 Sales - Growth Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 24 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Sales - Growth Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 6/11/15 6/16/15 85.00 CBRE GROUP INC 37.30 3,170.44 0.01 0.85 5/13/15 5/18/15 60.00 CENTENE CORP 67.57 4,054.12 0.01 0.60 6/11/15 6/16/15 115.00 CENTENE CORP 75.69 8,704.18 0.01 1.15 5/13/15 5/18/15 35.00 CIGNA CORPORATION 131.67 4,608.54 0.01 0.35 6/11/15 6/16/15 70.00 CIGNA CORPORATION 139.21 9,744.52 0.01 0.70 5/13/15 5/18/15 80.00 COGNIZANT TECHNOLOGY SOLUTIONS CORP 61.98 4,958.30 0.01 0.80 6/11/15 6/16/15 155.00 COGNIZANT TECHNOLOGY SOLUTIONS CORP 64.54 10,003.51 0.01 1.55 5/13/15 5/18/15 65.00 COMCAST CORP CL A 56.25 3,656.18 0.01 0.65 6/11/15 6/16/15 135.00 COMCAST CORP CL A 58.66 7,918.95 0.01 1.35 5/13/15 5/18/15 30.00 CONSTELLATION BRANDS INC 115.44 3,463.13 0.01 0.30 6/11/15 6/16/15 60.00 CONSTELLATION BRANDS INC 120.88 7,252.66 0.01 0.60 5/13/15 5/18/15 60.00 CVS CORPORATION 99.71 5,982.48 0.01 0.60 6/11/15 6/16/15 120.00 CVS CORPORATION 102.61 12,312.97 0.01 1.20 5/13/15 5/18/15 80.00 DELTA AIR LINES INC 47.15 3,771.93 0.01 0.80 6/11/15 6/16/15 160.00 DELTA AIR LINES INC 40.83 6,533.47 0.01 1.60 4/15/15 4/20/15 1,040.00 EATON VANCE CORP 42.82 44,530.73 0.01 10.40 5/13/15 5/18/15 50.00 EBAY INC 58.91 2,945.69 0.01 0.50 6/11/15 6/16/15 100.00 EBAY INC 60.51 6,050.88 0.01 1.00 5/13/15 5/18/15 100.00 EMC CORP-MASS 26.60 2,659.95 0.01 1.00 6/11/15 6/16/15 65.00 EMC CORP-MASS 27.31 1,775.12 0.01 0.65 6/11/15 6/16/15 140.00 EMC CORP-MASS 27.31 3,823.32 0.01 1.40 5/13/15 5/18/15 35.00 EXPRESS SCRIPTS HOLDING COMPANY 85.98 3,009.24 0.01 0.35 6/11/15 6/16/15 70.00 EXPRESS SCRIPTS HOLDING COMPANY 87.97 6,157.78 0.01 0.70 5/13/15 5/18/15 75.00 FACEBOOK INC 77.86 5,839.39 0.01 0.75 6/11/15 6/16/15 145.00 FACEBOOK INC 81.97 11,885.47 0.01 1.45 5/13/15 5/18/15 115.00 FIREEYE INC 43.29 4,978.25 0.01 1.15 6/11/15 6/16/15 230.00 FIREEYE INC 50.99 11,727.48 0.01 2.30 5/13/15 5/18/15 25.00 FOOT LOCKER INC 60.83 1,520.72 0.01 0.25 6/11/15 6/16/15 50.00 FOOT LOCKER INC 63.00 3,149.94 0.01 0.50 5/13/15 5/18/15 55.00 GILEAD SCIENCES INC 106.54 5,859.59 0.01 0.55 6/11/15 6/16/15 110.00 GILEAD SCIENCES INC 119.24 13,116.15 0.01 1.10 5/13/15 5/18/15 5.00 GOOGLE INC CL A 540.83 2,704.15 0.01 0.05 6/11/15 6/16/15 15.00 GOOGLE INC CL A 551.53 8,272.94 0.01 0.15 5/13/15 5/18/15 7.00 GOOGLE INC CL C 530.88 3,716.16 0.01 0.07 6/11/15 6/16/15 14.00 GOOGLE INC CL C 535.38 7,495.32 0.01 0.14 5/13/15 5/18/15 170.00 HANESBRANDS INC 30.52 5,188.30 0.01 1.70 6/11/15 6/16/15 335.00 HANESBRANDS INC 32.47 10,877.74 0.01 3.35 25 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Sales - Growth Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 5/13/15 5/18/15 50.00 HASBRO INC 70.68 3,533.93 0.01 0.50 6/11/15 6/16/15 100.00 HASBRO INC 73.07 7,306.86 0.01 1.00 5/13/15 5/18/15 30.00 HCA HOLDINGS INC 76.97 2,309.05 0.01 0.30 6/11/15 6/16/15 60.00 HCA HOLDINGS INC 83.54 5,012.30 0.01 0.60 5/13/15 5/18/15 65.00 HOME DEPOT INC 111.49 7,246.71 0.01 0.65 6/11/15 6/16/15 135.00 HOME DEPOT INC 111.40 15,038.72 0.01 1.35 5/13/15 5/18/15 60.00 HONEYWELL INTERNATIONAL INC 104.48 6,268.68 0.01 0.60 6/11/15 6/16/15 120.00 HONEYWELL INTERNATIONAL INC 104.96 12,594.96 0.01 1.20 5/13/15 5/18/15 30.00 INCYTE CORP 103.46 3,103.74 0.01 0.30 6/11/15 6/16/15 60.00 INCYTE CORP 105.42 6,325.08 0.01 0.60 4/7/15 4/10/15 1,205.00 INGREDION INC 79.07 95,276.88 0.01 12.05 5/13/15 5/18/15 95.00 INTEL CORPORATION 32.58 3,095.52 0.01 0.95 6/11/15 6/16/15 190.00 INTEL CORPORATION 31.90 6,060.88 0.01 1.90 5/13/15 5/18/15 55.00 INVESCO LTD 40.19 2,210.40 0.01 0.55 6/11/15 6/16/15 110.00 INVESCO LTD 39.28 4,320.72 0.01 1.10 5/13/15 5/18/15 55.00 LEVEL 3 COMMUNICATIONS INC 55.15 3,033.19 0.01 0.55 6/11/15 6/16/15 110.00 LEVEL 3 COMMUNICATIONS INC 55.60 6,116.43 0.01 1.10 5/13/15 5/18/15 115.00 LOWE'S COMPANIES INC 73.19 8,416.69 0.01 1.15 6/11/15 6/16/15 225.00 LOWE'S COMPANIES INC 69.05 15,535.96 0.01 2.25 5/13/15 5/18/15 25.00 MALLINCKRODT PLC 122.48 3,061.94 0.01 0.25 6/11/15 6/16/15 50.00 MALLINCKRODT PLC 126.38 6,318.88 0.01 0.50 5/13/15 5/18/15 115.00 MASCO CORP 26.32 3,026.74 0.01 1.15 6/11/15 6/16/15 230.00 MASCO CORP 27.91 6,419.18 0.01 2.30 5/13/15 5/18/15 60.00 MASTERCARD INC 92.27 5,536.09 0.01 0.60 6/11/15 6/16/15 115.00 MASTERCARD INC 94.66 10,885.77 0.01 1.15 5/13/15 5/18/15 20.00 McKESSON HBOC INC 234.49 4,689.71 0.01 0.20 6/11/15 6/16/15 35.00 McKESSON HBOC INC 237.78 8,322.14 0.01 0.35 5/13/15 5/18/15 45.00 MEDNAX INC 69.65 3,134.19 0.01 0.45 6/11/15 6/16/15 90.00 MEDNAX INC 71.74 6,456.48 0.01 0.90 5/13/15 5/18/15 85.00 MICROSOFT CORPORATION 47.94 4,074.82 0.01 0.85 6/11/15 6/16/15 170.00 MICROSOFT CORPORATION 46.44 7,894.65 0.01 1.70 5/13/15 5/18/15 30.00 MIDDLEBY CORP 102.65 3,079.44 0.01 0.30 6/11/15 6/16/15 65.00 MIDDLEBY CORP 109.10 7,091.36 0.01 0.65 5/13/15 5/18/15 30.00 MYLAN NV 70.53 2,115.86 0.01 0.30 6/11/15 6/16/15 60.00 MYLAN NV 73.97 4,438.11 0.01 0.60 5/13/15 5/18/15 70.00 NETAPP INC 34.93 2,445.05 0.01 0.70 5/13/15 5/18/15 130.00 ORACLE CORPORATION 43.73 5,684.79 0.01 1.30 26 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Sales - Growth Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 6/11/15 6/16/15 260.00 ORACLE CORPORATION 44.28 11,512.58 0.01 2.60 6/11/15 6/16/15 35.00 PALO ALTO NETWORKS INC 174.35 6,102.13 0.01 0.35 5/13/15 5/18/15 45.00 PENSKE AUTOMOTIVE GROUP INC 50.11 2,254.90 0.01 0.45 6/11/15 6/16/15 85.00 PENSKE AUTOMOTIVE GROUP INC 52.24 4,440.31 0.01 0.85 5/13/15 5/18/15 30.00 PHILLIPS 66 80.63 2,418.85 0.01 0.30 6/11/15 6/16/15 65.00 PHILLIPS 66 78.56 5,106.30 0.01 0.65 5/13/15 5/18/15 125.00 PILGRIMS PRIDE CORP 25.87 3,233.69 0.01 1.25 6/11/15 6/16/15 250.00 PILGRIMS PRIDE CORP 24.31 6,078.38 0.01 2.50 5/13/15 5/18/15 25.00 POLARIS INDUSTRIES INC 139.53 3,488.18 0.01 0.25 6/11/15 6/16/15 50.00 POLARIS INDUSTRIES INC 145.88 7,293.86 0.01 0.50 5/13/15 5/18/15 50.00 QUALCOMM INC 70.01 3,500.43 0.01 0.50 6/11/15 6/16/15 100.00 QUALCOMM INC 67.70 6,769.87 0.01 1.00 5/13/15 5/18/15 95.00 QUANTA SERVICES INC 28.85 2,740.69 0.01 0.95 6/11/15 6/16/15 185.00 QUANTA SERVICES INC 29.46 5,449.99 0.01 1.85 5/13/15 5/18/15 45.00 RACKSPACE HOSTING INC 44.08 1,983.56 0.01 0.45 6/1/15 6/4/15 1,315.00 RACKSPACE HOSTING INC 39.46 51,892.36 0.01 13.15 5/13/15 5/18/15 25.00 ROSS STORES INC 101.37 2,534.20 0.01 0.25 6/11/15 6/16/15 45.00 ROSS STORES INC 97.78 4,400.01 0.01 0.45 5/13/15 5/18/15 50.00 SCHLUMBERGER LTD 92.46 4,622.91 0.01 0.50 6/11/15 6/16/15 100.00 SCHLUMBERGER LTD 90.72 9,071.83 0.01 1.00 5/13/15 5/18/15 35.00 SEI INVESTMENTS CO 46.46 1,626.07 0.01 0.35 6/11/15 6/16/15 70.00 SEI INVESTMENTS CO 49.55 3,468.43 0.01 0.70 5/13/15 5/18/15 30.00 SKYWORKS SOLUTIONS INC 96.75 2,902.44 0.01 0.30 6/11/15 6/16/15 55.00 SKYWORKS SOLUTIONS INC 105.62 5,808.99 0.01 0.55 5/13/15 5/18/15 25.00 SM ENERGY CO 57.80 1,444.97 0.01 0.25 6/11/15 6/16/15 45.00 SM ENERGY CO 46.97 2,113.61 0.01 0.45 5/13/15 5/18/15 95.00 STARBUCKS CORP 49.65 4,716.66 0.01 0.95 6/11/15 6/16/15 185.00 STARBUCKS CORP 52.56 9,723.42 0.01 1.85 5/13/15 5/18/15 10.00 TESLA MOTORS INC 242.80 2,428.05 0.01 0.10 6/11/15 6/16/15 20.00 TESLA MOTORS INC 251.02 5,020.50 0.01 0.20 5/13/15 5/18/15 40.00 TESORO CORP 88.44 3,537.53 0.01 0.40 6/11/15 6/16/15 75.00 TESORO CORP 84.34 6,325.38 0.01 0.75 5/13/15 5/18/15 20.00 THERMO FISHER SCIENTIFIC INC 129.47 2,589.35 0.01 0.20 6/11/15 6/16/15 40.00 THERMO FISHER SCIENTIFIC INC 130.55 5,221.90 0.01 0.40 5/13/15 5/18/15 65.00 THOR INDUSTRIES INC 60.62 3,940.22 0.01 0.65 6/11/15 6/16/15 135.00 THOR INDUSTRIES INC 57.88 7,813.65 0.01 1.35 5/13/15 5/18/15 70.00 TYSON FOODS INC-CL A 41.18 2,882.54 0.01 0.70 27 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Sales - Growth Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 6/11/15 6/16/15 135.00 TYSON FOODS INC-CL A 41.34 5,580.79 0.01 1.35 5/13/15 5/18/15 30.00 UNION PACIFIC CORP 102.20 3,065.94 0.01 0.30 6/11/15 6/16/15 60.00 UNION PACIFIC CORP 101.08 6,064.68 0.01 0.60 5/13/15 5/18/15 10.00 UNITED THERAPEUTICS 174.39 1,743.86 0.01 0.10 6/11/15 6/16/15 20.00 UNITED THERAPEUTICS 186.50 3,729.93 0.01 0.20 5/13/15 5/18/15 20.00 UNIVERSAL HEALTH SERVICES 119.80 2,395.95 0.01 0.20 6/11/15 6/16/15 35.00 UNIVERSAL HEALTH SERVICES 131.85 4,614.66 0.01 0.35 5/13/15 5/18/15 25.00 VALSPAR CORP 84.20 2,104.96 0.01 0.25 6/11/15 6/16/15 50.00 VALSPAR CORP 84.53 4,226.42 0.01 0.50 5/13/15 5/18/15 60.00 VERIZON COMMUNICATIONS 49.59 2,975.34 0.01 0.60 6/11/15 6/16/15 115.00 VERIZON COMMUNICATIONS 47.79 5,495.74 0.01 1.15 5/13/15 5/18/15 70.00 VISA INC 68.43 4,790.01 0.01 0.70 6/11/15 6/16/15 140.00 VISA INC 69.74 9,763.42 0.01 1.40 5/13/15 5/18/15 40.00 WABTEC CORP 98.90 3,955.92 0.01 0.40 6/11/15 6/16/15 80.00 WABTEC CORP 101.20 8,095.85 0.01 0.80 5/13/15 5/18/15 40.00 WALGREENS BOOTS ALLIANCE INC 83.88 3,355.13 0.01 0.40 6/11/15 6/16/15 80.00 WALGREENS BOOTS ALLIANCE INC 85.77 6,861.47 0.01 0.80 5/13/15 5/18/15 50.00 WESTLAKE CHEMICAL CORP 69.56 3,477.93 0.01 0.50 6/11/15 6/16/15 100.00 WESTLAKE CHEMICAL CORP 72.33 7,232.86 0.01 1.00 5/13/15 5/18/15 25.00 WHIRLPOOL CORP 186.93 4,673.16 0.01 0.25 6/11/15 6/16/15 50.00 WHIRLPOOL CORP 186.92 9,346.12 0.01 0.50 5/13/15 5/18/15 35.00 ZEBRA TECHNOLOGIES CORP 105.37 3,687.88 0.01 0.35 6/11/15 6/16/15 65.00 ZEBRA TECHNOLOGIES CORP 115.26 7,491.76 0.01 0.65 1,179,111.79 0.01 161.05 FBN SECURITIES_O 6/1/15 6/4/15 2,100.00 NETAPP INC 33.07 69,441.31 0.02 42.00 MAXM_O 4/7/15 4/10/15 1,485.00 HARLEY-DAVIDSON INC 61.59 91,466.14 0.02 29.70 SALES SUBTOTAL 1,511,459.82 0.01 288.55 0.01 288.55 28 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission CITIGROUP GLOBAL MARKETS INC_O 6/1/15 6/10/15 100,000.00 PRECISION CASTPARTS CORP 99.99 99,990.00 0.00 0.00 2.250% Due 06-15-20 6/1/15 6/10/15 65,000.00 PRECISION CASTPARTS CORP 99.80 64,867.40 0.00 0.00 3.250% Due 06-15-25 4/1/15 4/2/15 175,000.00 US TREASURY N/B 100.50 175,875.00 0.00 0.00 2.500% Due 02-15-45 340,732.40 0.00 0.00 FTN SECURITIES_O 4/14/15 4/17/15 190,000.00 FFCB 100.00 190,000.00 0.00 0.00 1.950% Due 10-13-20 4/21/15 4/22/15 200,000.00 FHLB 100.11 200,226.00 0.00 0.00 2.100% Due 03-30-20 390,226.00 0.00 0.00 GOLDMAN SACHS_O 5/13/15 5/20/15 100,000.00 QUALCOMM INC 99.64 99,640.00 0.00 0.00 3.450% Due 05-20-25 J.P. MORGAN SECURITIES INC._O 5/18/15 5/21/15 65,000.00 EMERSON ELECTRIC CO 99.68 64,794.60 0.00 0.00 3.150% Due 06-01-25 5/28/15 6/2/15 135,000.00 HOME DEPOT INC 99.63 134,503.20 0.00 0.00 2.625% Due 06-01-22 6/25/15 6/30/15 115,000.00 XTO ENERGY INC 133.74 153,801.00 0.00 0.00 6.375% Due 06-15-38 353,098.80 0.00 0.00 KEYBANC_O 4/24/15 4/29/15 185,000.00 KEY BANK NA 101.11 187,057.20 0.00 0.00 2.250% Due 03-16-20 MISCHLER FINANCIAL_O 4/27/15 4/30/15 265,000.00 PEPSICO INC 99.58 263,897.60 0.00 0.00 2.750% Due 04-30-25 Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 Purchases - Fixed 29 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 Purchases - Fixed SUNTRUST_O 6/1/15 6/4/15 210,000.00 E.I. DU PONT DE NEMOURS 105.99 222,570.60 0.00 0.00 3.625% Due 01-15-21 SUSQUEHANNA INTERNATIONAL_O 4/1/15 4/7/15 255,000.00 ST JUDE MEDICAL INC 102.97 262,573.50 0.00 0.00 3.250% Due 04-15-23 TD SECURITIES_O 4/6/15 4/7/15 75,000.00 FFCB 100.04 75,030.00 0.00 0.00 2.480% Due 06-30-22 US Bancorp_O 6/12/15 6/17/15 165,000.00 TJX COS INC 100.59 165,976.80 0.00 0.00 2.750% Due 06-15-21 PURCHASES SUBTOTAL 2,360,802.90 0.00 0.00 0.00 0.00 30 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission 5/15/15 5/15/15 125,000.00 FANNIE MAE 100.00 125,000.00 0.700% Due 11-15-17 6/18/15 6/18/15 150,000.00 FEDERAL HOME LOAN BANK 100.00 150,000.00 1.000% Due 06-18-19 6/29/15 6/29/15 35,000.00 GENERAL ELEC CAP CORP 100.00 35,000.00 3.500% Due 06-29-15 310,000.00 0.00 0.00 CANTOR FITZGERALD FIXED_O 6/2/15 6/5/15 80,000.00 DARTMOUTH COLLEGE 110.89 88,712.00 0.00 0.00 4.750% Due 06-01-19 CITIGROUP GLOBAL MARKETS INC_O 4/6/15 4/9/15 40,000.00 GENERAL ELECTRIC CO 113.82 45,528.40 0.00 0.00 4.500% Due 03-11-44 FTN SECURITIES_O 4/14/15 4/17/15 80,000.00 AMERICAN EXPRESS CREDIT 102.84 82,274.40 0.00 0.00 2.800% Due 09-19-16 J.P. MORGAN SECURITIES INC._O 5/18/15 5/21/15 65,000.00 EXXON MOBIL CORPORATION 98.61 64,094.55 0.00 0.00 2.709% Due 03-06-25 JEFFERIES2_O 6/2/15 6/5/15 80,000.00 PRINCETON UNIVERSITY 111.63 89,300.80 0.00 0.00 4.950% Due 03-01-19 MARKETAXESS_O 4/14/15 4/17/15 190,000.00 PROCTER & GAMBLE CO/THE 100.86 191,626.40 0.00 0.00 1.800% Due 11-15-15 Pierpont Securities_O 4/1/15 4/7/15 255,000.00 MERCK & CO INC 100.15 255,379.95 0.00 0.00 0.700% Due 05-18-16 STIFEL NICOLAUS & CO._O Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 Sales - Fixed 31 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 Sales - Fixed 6/12/15 6/17/15 165,000.00 MICROSOFT CORP 100.31 165,508.20 0.00 0.00 1.625% Due 09-25-15 TD SECURITIES_O 6/1/15 6/4/15 210,000.00 WELLS FARGO & COMPANY 101.94 214,078.20 0.00 0.00 2.100% Due 05-08-17 US Bancorp_O 6/2/15 6/5/15 65,000.00 EXXON MOBIL CORPORATION 97.88 63,619.40 0.00 0.00 2.709% Due 03-06-25 WELLS FARGO_O 6/26/15 6/30/15 145,000.00 AT&T INC 99.36 144,072.00 0.00 0.00 1.400% Due 12-01-17 4/8/15 4/13/15 245,000.00 MISSISSIPPI POWER CO 102.28 250,576.20 0.00 0.00 2.350% Due 10-15-16 394,648.20 0.00 0.00 SALES SUBTOTAL 1,964,770.50 0.00 0.00 0.00 0.00 PRINCIPAL PAYDOWNS Not Classified 4/1/15 4/15/15 1,357.34 FG POOL #G05900 100.00 1,357.34 6.000% Due 03-01-40 5/1/15 5/15/15 2,451.62 FG POOL #G05900 100.00 2,451.62 6.000% Due 03-01-40 6/1/15 6/16/15 5,791.16 FG POOL #G05900 100.00 5,791.16 6.000% Due 03-01-40 4/1/15 4/15/15 641.66 FGCI #E01443 100.00 641.66 3.500% Due 07-01-18 5/1/15 5/15/15 676.97 FGCI #E01443 100.00 676.97 3.500% Due 07-01-18 6/1/15 6/16/15 661.49 FGCI #E01443 100.00 661.49 3.500% Due 07-01-18 4/1/15 4/15/15 361.47 FGCI #G12205 100.00 361.47 4.500% Due 06-01-21 5/1/15 5/15/15 401.46 FGCI #G12205 100.00 401.46 32 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 Sales - Fixed 4.500% Due 06-01-21 6/1/15 6/16/15 243.65 FGCI #G12205 100.00 243.65 4.500% Due 06-01-21 4/1/15 4/15/15 11.19 FGCI N #B13455 100.00 11.19 4.500% Due 04-01-19 5/1/15 5/15/15 37.41 FGCI N #B13455 100.00 37.41 4.500% Due 04-01-19 6/1/15 6/16/15 14.44 FGCI N #B13455 100.00 14.44 4.500% Due 04-01-19 4/1/15 4/15/15 15.71 FGCI N #G12323 100.00 15.71 4.500% Due 08-01-21 5/1/15 5/15/15 15.40 FGCI N #G12323 100.00 15.40 4.500% Due 08-01-21 6/1/15 6/16/15 16.23 FGCI N #G12323 100.00 16.23 4.500% Due 08-01-21 4/1/15 4/15/15 403.64 FGLMC #G02268 100.00 403.64 6.500% Due 08-01-36 4/1/15 4/15/15 1,377.32 FGLMC #G02268 100.00 1,377.32 6.500% Due 08-01-36 5/1/15 5/15/15 419.96 FGLMC #G02268 100.00 419.96 6.500% Due 08-01-36 5/1/15 5/15/15 1,433.02 FGLMC #G02268 100.00 1,433.02 6.500% Due 08-01-36 6/1/15 6/16/15 345.15 FGLMC #G02268 100.00 345.15 6.500% Due 08-01-36 6/1/15 6/16/15 1,177.76 FGLMC #G02268 100.00 1,177.76 6.500% Due 08-01-36 4/1/15 4/25/15 691.51 FNCI M #254371 100.00 691.51 5.500% Due 07-01-17 5/1/15 5/25/15 478.35 FNCI M #254371 100.00 478.35 5.500% Due 07-01-17 6/1/15 6/25/15 282.32 FNCI M #254371 100.00 282.32 5.500% Due 07-01-17 4/1/15 4/25/15 121.58 FNCI N #255888 100.00 121.58 4.000% Due 08-01-20 5/1/15 5/25/15 135.53 FNCI N #255888 100.00 135.53 4.000% Due 08-01-20 33 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 Sales - Fixed 6/1/15 6/25/15 115.42 FNCI N #255888 100.00 115.42 4.000% Due 08-01-20 4/1/15 4/25/15 13.50 FNCI N #725445 100.03 13.50 4.500% Due 05-01-19 4/1/15 4/25/15 434.76 FNCI N #725445 100.00 434.75 4.500% Due 05-01-19 5/1/15 5/25/15 12.34 FNCI N #725445 100.04 12.34 4.500% Due 05-01-19 5/1/15 5/25/15 397.39 FNCI N #725445 100.00 397.38 4.500% Due 05-01-19 6/1/15 6/25/15 12.05 FNCI N #725445 99.99 12.05 4.500% Due 05-01-19 6/1/15 6/25/15 388.23 FNCI N #725445 100.00 388.23 4.500% Due 05-01-19 4/1/15 4/25/15 127.58 FNCI N #825335 100.00 127.58 4.000% Due 05-01-20 5/1/15 5/25/15 128.06 FNCI N #825335 100.00 128.06 4.000% Due 05-01-20 6/1/15 6/25/15 128.54 FNCI N #825335 100.00 128.54 4.000% Due 05-01-20 4/1/15 4/25/15 79.19 FNCI N #829053 100.00 79.19 4.000% Due 08-01-20 5/1/15 5/25/15 294.07 FNCI N #829053 100.00 294.07 4.000% Due 08-01-20 6/1/15 6/25/15 74.39 FNCI N #829053 100.00 74.39 4.000% Due 08-01-20 4/1/15 4/25/15 1,323.64 FNCL # 256394 100.00 1,323.64 6.500% Due 09-01-36 5/1/15 5/25/15 2,006.70 FNCL # 256394 100.00 2,006.70 6.500% Due 09-01-36 6/1/15 6/25/15 364.05 FNCL # 256394 100.00 364.05 6.500% Due 09-01-36 4/1/15 4/20/15 1,206.88 G2 POOL # 4194 100.00 1,206.88 5.500% Due 07-20-38 5/1/15 5/20/15 1,233.49 G2 POOL # 4194 100.00 1,233.49 5.500% Due 07-20-38 6/1/15 6/21/15 1,203.05 G2 POOL # 4194 100.00 1,203.05 34 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 Sales - Fixed 5.500% Due 07-20-38 4/1/15 4/20/15 433.55 G2 POOL # 4195 100.00 433.55 6.000% Due 07-20-38 5/1/15 5/20/15 533.97 G2 POOL # 4195 100.00 533.97 6.000% Due 07-20-38 6/1/15 6/21/15 388.22 G2 POOL # 4195 100.00 388.22 6.000% Due 07-20-38 4/1/15 4/20/15 2,788.66 G2 POOL # 4447 100.00 2,788.66 5.000% Due 05-20-39 5/1/15 5/20/15 2,386.37 G2 POOL # 4447 100.00 2,386.37 5.000% Due 05-20-39 6/1/15 6/21/15 1,940.01 G2 POOL # 4447 100.00 1,940.01 5.000% Due 05-20-39 4/1/15 4/20/15 5,662.74 G2 POOL # 4496 100.00 5,662.74 5.000% Due 07-20-39 5/1/15 5/20/15 6,053.99 G2 POOL # 4496 100.00 6,053.99 5.000% Due 07-20-39 6/1/15 6/21/15 5,844.65 G2 POOL # 4496 100.00 5,844.65 5.000% Due 07-20-39 4/1/15 4/15/15 1,887.54 GN POOL # 782119 100.00 1,887.54 6.000% Due 08-15-36 5/1/15 5/15/15 2,357.94 GN POOL # 782119 100.00 2,357.94 6.000% Due 08-15-36 6/1/15 6/16/15 970.27 GN POOL # 782119 100.00 970.27 6.000% Due 08-15-36 4/1/15 4/15/15 139.33 GNJO M #781313 100.00 139.33 6.000% Due 07-15-16 5/1/15 5/15/15 138.27 GNJO M #781313 100.00 138.27 6.000% Due 07-15-16 6/1/15 6/16/15 119.81 GNJO M #781313 100.00 119.81 6.000% Due 07-15-16 4/1/15 4/15/15 127.25 GNSF 5.5% POOL #714005 100.00 127.25 5.500% Due 10-15-39 5/1/15 5/15/15 130.57 GNSF 5.5% POOL #714005 100.00 130.57 5.500% Due 10-15-39 6/1/15 6/16/15 128.53 GNSF 5.5% POOL #714005 100.00 128.53 5.500% Due 10-15-39 35 Trade Settle Unit Comm/ Date Date Quantity Security Price Amount Share Commission Palm Beach Gardens Police Officers’ Retirement Fund Period Ending 6/30/2015 Sales - Fixed 4/1/15 4/15/15 80.42 GNSF M #552509 100.00 80.42 6.000% Due 04-15-32 5/1/15 5/15/15 89.90 GNSF M #552509 100.00 89.90 6.000% Due 04-15-32 6/1/15 6/16/15 89.56 GNSF M #552509 100.00 89.56 6.000% Due 04-15-32 4/1/15 4/15/15 34.61 GNSF M #582153 100.00 34.61 6.000% Due 06-15-32 5/1/15 5/15/15 26.41 GNSF M #582153 100.00 26.41 6.000% Due 06-15-32 6/1/15 6/16/15 35.00 GNSF M #582153 100.00 35.00 6.000% Due 06-15-32 61,494.22 0.00 0.00 PRINCIPAL PAYDOWNS SUBTOTAL 61,494.22 0.00 0.00 0.00 0.00 36 3 9 0 N . O r a n g e A v e , S u i t e 2 1 0 0 | O r l a n d o , F L 3 2 8 0 1 T e l : 4 0 7 - 8 3 9 - 8 4 4 0 | F a x : 4 0 7 - 8 4 1 - 2 8 1 4 CITY OF PALM BEACH GARDENS POLICE OFFICERS’ PENSION FUND Chapter 112.664, F.S. Compliance Report In Connection with the October 1, 2014 Funding Actuarial Valuation Report And the Plan’s Financial Reporting for the Year Ending September 30, 2014 TABLE OF CONTENTS Title Page Ch. 112.664, F.S. Results Schedule of Changes in Net Pension Liability 1. Using financial reporting assumptions per GASB Statement No. 67 1 2. Using assumptions prescribed in Section 112.664(1)(a), F.S. 2 3. Using assumptions prescribed in Section 112.664(1)(b), F.S. 3 4. Using the mandated mortality and funding interest rate +2% 4 Assets Versus Benefit Payments Projections 1. Using funding assumptions 5 2. Using assumptions prescribed in Section 112.664(1)(a), F.S. 6 3. Using assumptions prescribed in Section 112.664(1)(b), F.S. 7 4. Using the mandated mortality and funding interest rate +2% 8 Actuarially Determined Contribution 9 CH. 112.664, Florida Statutes RESULTS 1 Schedule of Changes in the Employers' Net Pension Liability Using Financial Reporting Assumptions per GASB Statement No. 67 Fiscal year ending September 30,2014 1. Total pension liability a. Service Cost 1,229,681$ b. Interest 6,083,570 c. Benefit Changes 885,269 d. Difference between actual & expected experience & Other 77,194 e. Assumption Changes - f. Benefit Payments (2,277,672) g. Contribution Refunds (6,852) h. Net Change in Total Pension Liability 5,991,190 i. Total Pension Liability - Beginning 85,007,723 j. Total Pension Liability - Ending 90,998,913$ 2. Plan Fiduciary Net Position a. Contributions - Employer 2,712,635$ b. Contributions - Non-Employer Contributing Entity 546,749 c. Contributions - Member 391,188 d. Net Investment Income 6,798,928 e. Benefit Payments (2,277,672) f. Contribution Refunds (6,852) g. Administrative Expense (114,098) h. Other - i. Net Change in Plan Fiduciary Net Position 8,050,878 j. Plan Fiduciary Net Position - Beginning 64,575,453 k. Plan Fiduciary Net Position - Ending 72,626,331$ 3. Net Pension Liability / (Asset)18,372,582 Certain Key Assumptions Valuation Date 10/01/2013 Measurement Date 09/30/2014 Investment Return Assumption 7.20% Mortality Table RP-2000 fully generational using Scale AA 2 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions required under 112.664(1)(a), F.S. Fiscal year ending September 30,2014 1. Total pension liability a. Service Cost 1,229,681$ b. Interest 6,083,570 c. Benefit Changes 885,269 d. Difference between actual & expected experience & Other 77,194 e. Assumption Changes - f. Benefit Payments (2,277,672) g. Contribution Refunds (6,852) h. Net Change in Total Pension Liability 5,991,190 i. Total Pension Liability - Beginning 85,007,723 j. Total Pension Liability - Ending 90,998,913$ 2. Plan Fiduciary Net Position a. Contributions - Employer 2,712,635$ b. Contributions - Non-Employer Contributing Entity 546,749 c. Contributions - Member 391,188 d. Net Investment Income 6,798,928 e. Benefit Payments (2,277,672) f. Contribution Refunds (6,852) g. Administrative Expense (114,098) h. Other - i. Net Change in Plan Fiduciary Net Position 8,050,878 j. Plan Fiduciary Net Position - Beginning 64,575,453 k. Plan Fiduciary Net Position - Ending 72,626,331$ 3. Net Pension Liability / (Asset)18,372,582 Certain Key Assumptions Valuation Date 10/01/2013 Measurement Date 09/30/2014 Investment Return Assumption 7.20% Mortality Table RP-2000 fully generational using Scale AA 3 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions required under 112.664(1)(b), F.S. Fiscal year ending September 30,2014 1. Total pension liability a. Service Cost 1,999,564$ b. Interest 5,508,479 c. Benefit Changes 885,269 d. Difference between actual & expected experience & Other 267,462 e. Assumption Changes - f. Benefit Payments (2,277,672) g. Contribution Refunds (6,852) h. Net Change in Total Pension Liability 6,376,250 i. Total Pension Liability - Beginning 105,676,118 j. Total Pension Liability - Ending 112,052,368$ 2. Plan Fiduciary Net Position a. Contributions - Employer 2,712,635$ b. Contributions - Non-Employer Contributing Entity 546,749 c. Contributions - Member 391,188 d. Net Investment Income 6,798,928 e. Benefit Payments (2,277,672) f. Contribution Refunds (6,852) g. Administrative Expense (114,098) h. Other - i. Net Change in Plan Fiduciary Net Position 8,050,878 j. Plan Fiduciary Net Position - Beginning 64,575,453 k. Plan Fiduciary Net Position - Ending 72,626,331$ 3. Net Pension Liability / (Asset)39,426,037 Certain Key Assumptions Valuation Date 10/01/2013 Measurement Date 09/30/2014 Investment Return Assumption 5.20% Mortality Table RP-2000 fully generational using Scale AA 4 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions under 112.664(1)(b), F.S. except 2% higher investment return assumption Fiscal year ending September 30,2014 1. Total pension liability a. Service Cost 877,331$ b. Interest 6,414,623 c. Benefit Changes 885,269 d. Difference between actual & expected experience & Other (113,073) e. Assumption Changes - f. Benefit Payments (2,277,672) g. Contribution Refunds (6,852) h. Net Change in Total Pension Liability 5,779,626 i. Total Pension Liability - Beginning 70,590,222 j. Total Pension Liability - Ending 76,369,848$ 2. Plan Fiduciary Net Position a. Contributions - Employer 2,712,635$ b. Contributions - Non-Employer Contributing Entity 546,749 c. Contributions - Member 391,188 d. Net Investment Income 6,798,928 e. Benefit Payments (2,277,672) f. Contribution Refunds (6,852) g. Administrative Expense (114,098) h. Other - i. Net Change in Plan Fiduciary Net Position 8,050,878 j. Plan Fiduciary Net Position - Beginning 64,575,453 k. Plan Fiduciary Net Position - Ending 72,626,331$ 3. Net Pension Liability / (Asset)3,743,517 Certain Key Assumptions Valuation Date 10/01/2013 Measurement Date 09/30/2014 Investment Return Assumption 9.20% Mortality Table RP-2000 fully generational using Scale AA 5 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using assumptions from the Plan's Latest Actuarial Valuation FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2015 60,549,803 4,127,147 4,841,957 59,834,993 2016 59,834,993 4,069,567 5,034,293 58,870,267 2017 58,870,267 3,997,423 5,137,060 57,730,631 2018 57,730,631 3,912,801 5,241,510 56,401,922 2019 56,401,922 3,815,076 5,336,927 54,880,070 2020 54,880,070 3,703,563 5,434,416 53,149,217 2021 53,149,217 3,571,067 5,704,988 51,015,297 2022 51,015,297 3,415,929 5,807,234 48,623,992 2023 48,623,992 3,240,860 5,956,160 45,908,692 2024 45,908,692 3,043,777 6,077,198 42,875,270 2025 42,875,270 2,827,074 6,114,653 39,587,691 2026 39,587,691 2,591,312 6,180,671 35,998,333 2027 35,998,333 2,334,558 6,234,457 32,098,434 2028 32,098,434 2,056,535 6,266,307 27,888,662 2029 27,888,662 1,756,943 6,285,961 23,359,644 2030 23,359,644 1,433,899 6,327,767 18,465,776 2031 18,465,776 1,086,763 6,318,508 13,234,031 2032 13,234,031 715,761 6,305,775 7,644,018 2033 7,644,018 320,574 6,257,772 1,706,820 2034 1,706,820 - 6,206,442 - 2035 - - 6,153,640 - 2036 - - 6,069,774 - 2037 - - 5,972,849 - 2038 - - 5,875,169 - 2039 - - 5,783,077 - 2040 - - 5,666,682 - 19.25 Certain Key Assumptions Valuation Investment return assumption 7.10% Valuation Mortality Table RP-2000 fully generational using Scale AA Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statues and Plan provisions: 6 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under 112.664(1)(a), F.S. FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2015 60,549,803 4,127,147 4,841,957 59,834,993 2016 59,834,993 4,069,567 5,034,293 58,870,267 2017 58,870,267 3,997,423 5,137,060 57,730,631 2018 57,730,631 3,912,801 5,241,510 56,401,922 2019 56,401,922 3,815,076 5,336,927 54,880,070 2020 54,880,070 3,703,563 5,434,416 53,149,217 2021 53,149,217 3,571,067 5,704,988 51,015,297 2022 51,015,297 3,415,929 5,807,234 48,623,992 2023 48,623,992 3,240,860 5,956,160 45,908,692 2024 45,908,692 3,043,777 6,077,198 42,875,270 2025 42,875,270 2,827,074 6,114,653 39,587,691 2026 39,587,691 2,591,312 6,180,671 35,998,333 2027 35,998,333 2,334,558 6,234,457 32,098,434 2028 32,098,434 2,056,535 6,266,307 27,888,662 2029 27,888,662 1,756,943 6,285,961 23,359,644 2030 23,359,644 1,433,899 6,327,767 18,465,776 2031 18,465,776 1,086,763 6,318,508 13,234,031 2032 13,234,031 715,761 6,305,775 7,644,018 2033 7,644,018 320,574 6,257,772 1,706,820 2034 1,706,820 - 6,206,442 - 2035 - - 6,153,640 - 2036 - - 6,069,774 - 2037 - - 5,972,849 - 2038 - - 5,875,169 - 2039 - - 5,783,077 - 2040 - - 5,666,682 - 19.25 Certain Key Assumptions Valuation Investment return assumption 7.10% Valuation Mortality Table RP-2000 fully generational using Scale AA Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statues and Plan provisions: 7 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under 112.664(1)(b), F.S. FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2015 60,549,803 2,964,570 4,841,957 58,672,417 2016 58,672,417 2,863,919 5,034,293 56,502,042 2017 56,502,042 2,750,609 5,137,060 54,115,591 2018 54,115,591 2,626,237 5,241,510 51,500,318 2019 51,500,318 2,490,425 5,336,927 48,653,816 2020 48,653,816 2,342,767 5,434,416 45,562,167 2021 45,562,167 2,178,193 5,704,988 42,035,372 2022 42,035,372 1,995,720 5,807,234 38,223,858 2023 38,223,858 1,797,535 5,956,160 34,065,232 2024 34,065,232 1,582,358 6,077,198 29,570,392 2025 29,570,392 1,352,166 6,114,653 24,807,906 2026 24,807,906 1,107,596 6,180,671 19,734,831 2027 19,734,831 847,498 6,234,457 14,347,872 2028 14,347,872 571,951 6,266,307 8,653,515 2029 8,653,515 281,037 6,285,961 2,648,592 2030 2,648,592 - 6,327,767 - 2031 - - 6,318,508 - 2032 - - 6,305,775 - 2033 - - 6,257,772 - 2034 - - 6,206,442 - 2035 - - 6,153,640 - 2036 - - 6,069,774 - 2037 - - 5,972,849 - 2038 - - 5,875,169 - 2039 - - 5,783,077 - 2040 - - 5,666,682 - 15.42 Certain Key Assumptions Valuation Investment return assumption 5.10% Valuation Mortality Table RP-2000 fully generational using Scale AA Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statues and Plan provisions: 8 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions under 112.664(1)(b), F.S. except 2% higher investment return assumption FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2015 60,549,803 5,289,723 4,841,957 60,997,570 2016 60,997,570 5,321,718 5,034,293 61,284,995 2017 61,284,995 5,343,198 5,137,060 61,491,133 2018 61,491,133 5,357,204 5,241,510 61,606,828 2019 61,606,828 5,363,391 5,336,927 61,633,292 2020 61,633,292 5,361,364 5,434,416 61,560,240 2021 61,560,240 5,342,405 5,704,988 61,197,656 2022 61,197,656 5,304,758 5,807,234 60,695,180 2023 60,695,180 5,252,256 5,956,160 59,991,276 2024 59,991,276 5,182,694 6,077,198 59,096,772 2025 59,096,772 5,099,590 6,114,653 58,081,708 2026 58,081,708 5,004,215 6,180,671 56,905,252 2027 56,905,252 4,894,710 6,234,457 55,565,505 2028 55,565,505 4,771,344 6,266,307 54,070,542 2029 54,070,542 4,634,408 6,285,961 52,418,990 2030 52,418,990 4,482,215 6,327,767 50,573,437 2031 50,573,437 4,314,691 6,318,508 48,569,620 2032 48,569,620 4,132,923 6,305,775 46,396,767 2033 46,396,767 3,937,377 6,257,772 44,076,373 2034 44,076,373 3,728,557 6,206,442 41,598,488 2035 41,598,488 3,505,472 6,153,640 38,950,319 2036 38,950,319 3,268,304 6,069,774 36,148,850 2037 36,148,850 3,017,781 5,972,849 33,193,781 2038 33,193,781 2,753,314 5,875,169 30,071,926 2039 30,071,926 2,473,415 5,783,077 26,762,264 2040 26,762,264 2,177,532 5,666,682 23,273,115 2041 23,273,115 1,865,207 5,552,667 19,585,655 2042 19,585,655 1,536,382 5,404,677 15,717,359 2043 15,717,359 1,191,527 5,247,305 11,661,582 2044 11,661,582 829,882 5,083,989 7,407,475 2045 7,407,475 450,410 4,915,825 2,942,060 2046 2,942,060 52,530 4,729,614 - 2047 - - 4,539,851 - 31.58 Certain Key Assumptions Valuation Investment return assumption 9.10% Valuation Mortality Table RP-2000 fully generational using Scale AA Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statues and Plan provisions: 9 A. Valuation Date B. Actuarially Determined Contribution (ADC) to Be Paid During Fiscal Year Ending 9/30/2016 9/30/2016 9/30/2016 9/30/2016 C. Assumed Dates of Employer Contributions Quarterly Quarterly Quarterly Quarterly D. Annual Payment to Amortize Unfunded Actuarial Liability $ 2,073,095 $ 2,073,095 $ 3,779,845 $ 661,141 E. Employer Normal Cost 948,963 948,963 1,616,988 547,051 F. Employer ADC if Paid on Valuation Date: D + E 3,022,058 3,022,058 5,396,833 1,208,192 G. Employer ADC Adjusted for Frequency of Payments 3,152,671 3,152,671 5,565,646 1,274,643 H. Employer ADC Adjusted for Frequency of Payments as % of Covered Payroll 67.88 % 67.88 % 119.83 % 27.44 % I. Assumed Rate of Increase in Covered Payroll to Contribution Year 5.00 % 5.00 % 5.00 % 5.00 % J. Covered Payroll for Contribution Year 4,876,838 4,876,838 4,876,838 4,876,838 K. Employer ADC for Contribution Year: H x J 3,310,398 3,310,398 5,843,915 1,338,204 L. Estimated State Revenue in Contribution Year 412,644 412,644 412,644 412,644 M.Net Employer ADC in Contribution Year 2,897,754 2,897,754 5,431,271 925,560 N. Net Employer ADC as % of Covered Payroll in Contribution Year: M ÷ J 59.42 % 59.42 % 111.37 % 18.98 % O. Expected Member Contributions 419,408 419,408 419,408 419,408 P. Total Contribution (including Members) 3,729,806 3,729,806 6,263,323 1,757,612 Q. Total Contribution as % of Covered Payroll in Contribution Year: P ÷ J 76.48 % 76.48 % 128.43 % 36.04 % R. Certain Key Assumptions Investment Return Assumption 7.10% 7.10% 5.10% 9.10% Mortality Table RP-2000 fully generational using Scale AA October 1, 2014 ACTUARIALLY DETERMINED CONTRIBUTION October 1, 2014 October 1, 2014October 1, 2014 112.664(1)(b) F.S. except 2% higher investment return assumption 112.664(1)(b) F.S. Assumptions 112.664(1)(a) F.S. Assumptions Plan's Latest Actuarial Valuation RP-2000 fully generational using Scale AA RP-2000 fully generational using Scale AA RP-2000 fully generational using Scale AA PAGE Market Snapshot 1 Index Comparisons 2 Compliance Report 3 Total Portfolio Pie Chart 5 Manager Pie Chart 6 Asset Allocation Table 7 Gain/Loss Table 8 Total Ranks Table 9 Manager Ranks 10 Scatterplot Graphs: Total Fund Graph 13 Rhumbline Equities Graph 14 ICC Fixed income Graph 15 Beta Graph 16 Alpha Graph 17 Beta/Alpha Table 18 Batting Average Graph 19 Batting Average/R-Squared Table 20 Other Managers' Page 21 Palm Beach Gardens Police Pension Fund Executive Summary Report Table of Contents SECTION Page 2 Index Comparison June 30, 2015 -10.00 0.00 10.00 20.00 30.00 3 Months Last 12 Months Last 3 Years (Annualized) Re t u r n ( % ) Barclays Gov/Credit Bond Barclays Gov/Credit-Intermediate S&P 500 Russell 1000 Growth Russell 1000 Value Russell 2000 Growth Russell 2000 Value Russell 3000 MSCI EAFE 1.98% R2000G -2.10% BCGC 12.34% R2000G 20.11% R2000G 1.60% BCIGC 1.68% BCIGC 1. 2. 3. 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 5. 6. Page 3 Is the minimum quality rating of the domestic bond investments BBB from Standard & Poor's or BAA from Moody's? Did the fixed income return, over the trailing 5-year period, rank in the top 40% of the Mobius Broad Fixed Income Universe? [71st] Did the total return of the fund over the trailing 3-year period equal or exceed 7.3% (actuarial assumption rate of return)? [12.28 vs. 7.30] TOTAL FIXED INCOME Did the fixed income return, over the trailing 3-year period, exceed the 89% BCAB and 11% Non-US World Gov't Bond? [1.11 vs. 1.20] Is the amount invested in any single security less than or equal to 5% of the market value of the total equity portfolio? Is the amount invested in any single industry less than or equal to 20% of the market value of the total equity portfolio? Did the fixed income return, over the trailing 5-year period, exceed the BCAB? [2.90 vs. 3.04] Did the fixed income return, over the trailing 3-year period, rank in the top 40% of the Mobius Broad Fixed Income Universe? [78th] Is the amount invested in any single security (with exception of U.S. Government and its agencies) less than or equal to 5% of the market value of the total fixed income portfolio? Palm Beach Gardens Police Pension Fund Compliance Report June 30, 2015 YES NO Did the equity return, over the trailing 3-year period, exceed the 38.4% S&P 500, 15.4% S&P 400, 15.4% S&P 600, 15.4% R1000G index and 15.4% EAFE? [17.88 vs. 17.18] Did the equity return, over the trailing 5-year period, exceed the 38.4% S&P 500, 15.4% S&P 400, 15.4% S&P 600, 15.4% R1000G index and 15.4% EAFE? [16.91 vs. 16.72] Did the equity return, over the trailing 3-year period, rank in the top 40% of the Mobius 38.4% Broad Large Cap, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth and 15.4% International Universe? [12th] Did the equity return, over the trailing 5-year period, rank in the top 40% of the Mobius 38.4% Broad Large Cap, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth and 15.4% International Universe? [9th] TOTAL FUND Did the total return, over the trailing 3-year period, exceed the policy, which is comprised of 25% S&P500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 29% BCAB , 4% Non US $ World Gov. Bond & 2% RE? [12.28 vs. 11.65] TOTAL EQUITY Did the total return, over the trailing 3-year period, rank in the top 40% of the Universe comprised of 25% Mobius Broad Large Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Cap Growth, 10% International Equity, 29% Broad Fixed, 4% International Fixed Income & 2% NCREIF? [50th] 1. On January 21, 2015, Highland Capital Management, LLC (Highland) entered into an agreement to purchase ICC Capital Management, Inc. (ICC). ICC will begin the process of transitioning to Highland during the first and second quarters of 2015 with the expectation of full integration being completed by June 30, 2015. 2. No. 3. The recent combination of the firm's has increased the investment team's depth to include: Jed Miller, Steve Wishnia, David Thompson, Mark Cronin, Brian Escebedo, and Vineet Agrawal. 4. No. 5. Effective Apri 1, 2015, Highland purchased assets of ICC Capital Management, which increased our assets under management (by approximately 88%). 6. None 7. Mortgage Pools represented 3.3% of the Core Fixed Income strategy on 6/30/15. Mortgage Pools represented 2.6% of the Intermediate Fixed Income strategy on 6/30/15. 8. No. 9. As of 6/30/15 Core Value Equity = 0.0% Large Cap Growth = 2.8% Multi-Cap Equity = 2.5% International Equity = 90.8% 10. No 11. As of 6/30/15 Core Value Equity = 49.65% Large Cap Growth = 49.55% Multi-Cap Equity = 52.05% 12. Nathan Moore. Highland Capital Management. Page 4 For managers, with fixed income portfolios that we monitor, are you currently invested in commercial mortgage backed securities (CMBS)? (If yes, please give % of fixed portfolio) Manager Compliance Questionnaire June 30, 2015 Have there been any changes in your organization? Have you undergone any change in ownership or control? Are you invested in any unhedged and/or levereged derivatives? What percentage of equity is international? The manager must immediately notify the Board and the Consultant when the international exposure reaches ten percent (10%). An explanation will be needed as to why the manager is changing their discipline. (This does not apply to managers that are 100% international equity and to those that have been previously given permission by the board and the consultant) Are you invested in any companies on the SBA's website? (Please review list of scrutinized companies on the following website: http://www.sbafla.com/fsb/Home/ProtectingFloridasInvestmentAct/tabid/751/Default.aspx What is your Active Share percentage? Name of person completing this form (please include company name)? Have there been any changes in your investment philosophy? Have there been any changes in your staff of investment professionals? Have you lost a substantial amount of business (amount of percentage of assets under management)? Have you gained a substantial amount of business (amount of percentage of assets under management)? Have there been any new investigations begun by any state or federal government or their agencies, or any charges filed, with regard to any division or unit of your company, and in particular anyone who directly or indirectly performs services for this client? Please provide details (if there is any doubt, please err on the side of providing too much information). Page 5 Palm Beach Gardens Police Pension Fund Total Assets June 30, 2015 Equities 68% Fixed Income 26% Real Estate 5% Cash 1% Equities Fixed Income Real Estate Cash Page 6 Palm Beach Gardens Police Pension Fund Total Assets June 30, 2015 Rhumbline S&P500 27% Rhumbline S&P400 12% Rhumbline S&P600 12% Intl. Equity 7% ICC Lg. Growth 11% Intl. Bonds 3% ICC Fixed 24% American Realty 5% Rhumbline S&P500 Rhumbline S&P400 Rhumbline S&P600 Intl. Equity ICC Lg. Growth Intl. Bonds ICC Fixed American Realty Manager Equities Fixed Income Real Estate Cash Total % of Total Rhumbline S&P500 $20,299,000 $0 $0 $0 $20,299,000 26.7% 25.0% Rhumbline S&P400 $8,698,000 $0 $0 $0 $8,698,000 11.5% 10.0% Rhumbline S&P600 $8,836,000 $0 $0 $0 $8,836,000 11.6% 10.0% Intl. Equity $5,575,000 $0 $0 $0 $5,575,000 7.3% 10.0% ICC Lg. Growth $8,626,000 $0 $0 $0 $8,626,000 11.4% 10.0% Intl. Bonds $0 $2,221,000 $0 $0 $2,221,000 2.9% 4.0% ICC Fixed $0 $17,167,000 $0 $563,000 $17,730,000 23.3% 26.0% $0 $0 $3,950,000 $0 $3,950,000 5.2% 5.0% Total $52,034,000 $19,388,000 $3,950,000 $563,000 $75,935,000 100.0% 100.0% % of Total 68.5%25.5%5.2%0.7%100.0% Target %65.0%30.0%5.0%0.0%100.0% Page 7 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary June 30, 2015 American Realty Portfolio Last Qtr. MV Net Flows Inv G(L)This Qtr. MV Total Fund $75,731,000 $165,000 $39,000 $75,935,000 Total Equities $52,705,000 -$846,000 $175,000 $52,034,000 ICC Large Growth $9,312,000 -$846,000 $159,000 $8,626,000 Rhumbline S&P 500 $20,245,000 $0 $54,000 $20,299,000 Rhumbline S&P 400 $8,790,000 $0 -$92,000 $8,698,000 Rhumbline S&P 600 $8,817,000 $0 $19,000 $8,836,000 International Equity $5,540,000 $0 $35,000 $5,575,000 International Bonds $2,190,000 $0 $31,000 $2,221,000 ICC Fixed Income $17,202,000 $243,000 -$277,000 $17,167,000 Real Estate $3,169,000 $670,000 $111,000 $3,950,000 Page 8 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary June 30, 2015 Current Fiscal Year Quarter FYTD One Year Three Years Five Years 2014 2013 2012 2011 2010 Return 0.05%6.83%5.38%12.28%11.75%10.73%14.53%18.63%0.22%10.09% Ranking (*)73 19 27 50 64 47 80 90 40 45 Policy Return (**)-0.39%5.52%4.11%11.65%12.03%10.35%14.21%19.60%1.76%10.82% Policy Ranking (*)96 64 65 78 50 58 85 72 8 32 Return 0.32%9.08%6.89%17.88%16.91% 13.97%24.43%28.59%-2.62%12.36% Ranking (***)62 20 22 12 9 20 30 14 58 20 23.27%27.80%-0.50%11.44% Policy Ranking (***)73 43 40 31 13 21 56 27 15 36 Return -1.25%0.80%0.68%1.11%2.90%3.07%-2.93%5.83%4.78%7.63% Ranking (Broad Fixed)72 64 66 78 71 74 75 71 14 45 Policy Return (89% BCAB and 11% Non-US World Gov't Bond)-1.66%0.53%0.07%1.20%3.04%3.41%-2.12%4.98%5.21%7.79% Policy Ranking (Broad Fixed)86 74 79 76 68 71 61 76 10 44 Page 9 * 25% Broad Large Cap Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Growth, 10% International, 4% Intl. Bond, 26% Broad Fixed & 5% RE ** 25% S&P500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Intl. Bond, 26% BCAB & 5% NCREIF Policy Return (38.4%S&P500, 15.4%S&P400, 15.4%S&P600, 15.4% R1000G, 15.4% EAFE)16.72% Red indicates bottom 40% of universe 17.18% *** 38.4% Broad Large Cap Core, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth, 15.4% International TOTAL FIXED INCOME(Net of Fees)[Inception 3-31-1994](International Fixed Inception 9-30-2010) Gold indicates equal to or beat the index, or in upper 40% of universe 0.15% Palm Beach Gardens Police Pension Fund Performance Evaluation Summary June 30, 2015 5.96% TOTAL FUND (Net of Fees)[Inception 3-31-1992] TOTAL EQUITIES(Net of Fees)[Inception 6-30-2000] 8.02%13.86% Current Fiscal Year Quarter FYTD One Year Three Years Five Years 2014 2013 2012 2011 2010 0.27%6.25%7.44%17.26%17.32%19.65%19.31%30.17%1.19%10.21% Ranking (Br.Large Cap Core)50 50 39 54 30 18 66 21 20 29 0.28%6.22%7.42%17.31%17.34%19.74%19.34%30.20%1.15%10.16% Policy Ranking (Br.Large Cap Core)49 51 39 53 30 17 66 20 20 30 -1.05%10.80%6.39%18.53%17.89%11.81%27.56%28.90%-1.17%17.77% 58 20 25 39 20 53 46 28 26 12 -1.06%10.81%6.40%18.60%17.83%11.82%27.68%28.54%-1.28%17.78% 59 20 25 38 21 53 44 30 27 12 0.22%14.45%6.78%18.79%18.41%5.80%31.40%33.27%0.21%14.14% Ranking (Broad Small Cap)59 42 43 32 33 35 39 18 26 37 0.19%14.42%6.72%18.81%18.44%5.74%31.52%33.35%0.21%14.21% Policy Ranking (Broad Small Cap)61 43 44 32 33 36 37 18 26 36 1.66%13.25%12.21%21.35%18.06%16.29%28.72%27.52%-6.48%14.62% Ranking (Broad Large Cap Growth)12 6 26 2 36 67 1 55 94 8 0.12%8.94%10.56%17.99%18.59%19.15%19.27%29.18%3.78%12.65% 71 47 41 49 22 29 73 40 14 20 0.63%2.99%-1.57%13.72%11.49%7.90%23.71%19.38%-11.11%9.09% 76 53 32 18 14 8 28 20 50 32 0.84%2.14%-3.82%12.45%10.03%4.70%24.29%14.33%-8.94%3.71% 69 60 60 30 36 41 24 68 25 65 Page 10 Return Policy (R1000G) Policy (S&P 600) Ranking (Broad Mid Cap) ICC LARGE CAP GROWTH EQUITY PORTFOLIO(Inception 9-30-2007) Return Policy Ranking (Broad Mid Cap) INTERNATIONAL EQUITY(Inception 9-30-2006) Return Ranking (International Equity) Policy (MSCI EAFE) Return Gold indicates equal to or beat the index, or in upper 40% of universe Policy (S&P 400) Red indicates bottom 40% of universe Policy Ranking (Broad Large Cap Growth) Policy Ranking (International Equity) Return Palm Beach Gardens Police Pension Fund Performance Evaluation Summary June 30, 2015 RHUMBLINE S&P 500 EQUITY PORTFOLIO(Inception 6-30-2000) RHUMBLINE S&P 400 EQUITY PORTFOLIO(Inception 12-31-2002) Policy(S&P500) RHUMBLINE S&P 600 EQUITY PORTFOLIO(Inception 10-31-2003) Current Fiscal Year Quarter FYTD One Year Three Years Five Years 2014 2013 2012 2011 2010 -1.58%0.80%0.89%1.02%2.90%3.10%-2.93%5.59%5.20%7.44% Ranking (Broad Fixed)84 64 61 79 71 73 75 72 10 46 -1.68%1.69%1.86%1.83%3.36%3.96%-1.68%5.16%5.29%8.17% Policy Ranking (Broad Fixed)86 25 39 64 62 66 53 75 9 41 Four Years 1.42%0.95%-0.68%2.02%1.50%2.97%-2.82%7.89%0.33%n/a -1.54%-8.57%-13.49%-3.88%-2.82%-0.99%-5.65%3.46%4.14%n/a Two Years Inception 3.47%9.46%11.42%12.11%11.47%11.34%11.10%n/a n/a n/a 3.82%10.80%13.71%12.45%11.87%11.26%11.00%n/a n/a n/a Page 11 INTERNATIONAL FIXED INCOME PORTFOLIO(Inception 9-30-2010) Return Policy (Non-US World Bond) Gold indicates equal to or beat the index, or in upper 40% of universe Red indicates bottom 40% of universe AMERICAN REALTY PORTFOLIO(Inception 6-30-2012) Return Policy (NCREIF) Palm Beach Gardens Police Pension Fund Performance Evaluation Summary June 30, 2015 ICC FIXED INCOME PORTFOLIO(Inception 3-31-1994) Return Policy(BCAB) June 30, 2015 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. If 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 of) 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). Page 13 Palm Beach Gardens Police Pension Fund Total Fund Trailing 5-Years June 30, 2015 (versus 25% S&P500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Non-US World Bond, 26% BCAB, 5% RE) -3 0 3 -3 0 3 Di f f e r e n c e i n R e t u r n s ( M a n a g e r - In d e x ) Risk (Difference in Standard Deviations) 6/30/2015 3/31/2015 12/31/2014 9/30/2014 Good Aggressive Conservative Bad Page 14 Palm Beach Gardens Police Pension Fund Total Equity Trailing 5-Years June 30, 2015 (versus 38.4% S&P 500, 15.4% S&P 400, 15.4% S&P 600, 15.4% R1000G & 15.4% Intl. ) -3 0 3 -3 0 3 Di f f e r e n c e i n R e t u r n s ( M a n a g e r - In d e x ) Risk (Difference in Standard Deviations) 6/30/2015 3/31/2015 12/31/2014 9/30/2014 Good Aggressive Conservative Bad Page 15 Palm Beach Gardens Police Pension Fund Total Fixed Income 5-Year Trailing June 30, 2015 (versus 89% BCAB, 11% Non-US World Gov't Bond) -3 0 3 -3 0 3 Di f f e r e n c e i n R e t u r n s ( M a n a g e r - In d e x ) Risk (Difference in Standard Deviations) 6/30/2015 3/31/2015 12/31/2014 9/30/2014 Good Aggressive Conservative Bad 15451000 15451000 123518000 123518000 264000 264000 139233000 Page 16 Palm Beach Gardens Police Pension Fund Beta: Trailing 5-Year Risk (or Inception if Less) June 30, 2015 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 Jun-15 Mar-15 Dec-14 Sep-14 Total Fund Large Cap Mid Cap Small Cap Total Fixed International Large Growth Page 17 Palm Beach Gardens Police Pension Fund Alpha: Trailing 5-Year Reward (or Inception if Less) June 30, 2015 -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Jun-15 Mar-15 Dec-14 Sep-14 TOTAL FUND & INDIVIDUAL MANAGERS Total Fund Large Cap Mid Cap Small Cap Total Fixed International Large Growth Jun-15 Mar-15 Dec-14 Sep-14 Total Fund 0.98 0.97 0.97 0.97 Managers, Fixed Income Total Fixed 0.94 0.95 0.97 0.96 Managers, Equities Large Cap 1.00 1.00 1.00 1.00 Mid Cap 1.00 1.00 1.00 1.00 Small Cap 1.00 1.00 1.00 1.00 International 0.30 0.34 0.34 0.31 Large Growth 1.12 1.11 1.12 1.13 Real Estate NCREIF 0.94 0.94 n/a n/a Total Fund -0.01%0.13%0.00%-0.14% Managers, Fixed Income Total Fixed 0.03%0.00%-0.04%-0.03% Managers, Equities Large Cap 0.03%0.04%0.04%0.04% Mid Cap 0.10%0.11%0.09%0.10% Small Cap 0.03%0.04%0.02%0.02% International 8.47%5.94%5.89%6.91% Large Growth -2.68%-2.55%-3.08%-3.18% Real Estate NCREIF 0.41%0.00 n/a n/a Page 18 S&P400 * 25% S&P 500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Non-US World Gov't Bond, 26% BCAB, 5% RE S&P600 EAFE R1000G Policy S&P500 S&P600 EAFE S&P400 BCAB R1000G BCAB S&P500 * ALPHA Palm Beach Gardens Police Pension Fund Alpha & Beta: 5-Years Trailing (or Inception if Less) June 30, 2015 Current BETA * Page 19 Palm Beach Gardens Police Pension Fund Batting Average: 5-Years Trailing (or Inception if Less) June 30, 2015 0 10 20 30 40 50 60 70 80 90 100 Jun-15 Mar-15 Dec-14 Sep-14 TOTAL FUND & INDIVIDUAL MANAGERS Total Fund Large Cap Mid Cap Small Cap Total Fixed International Large Growth Jun-15 Mar-15 Dec-14 Sep-14 Total Fund 35.00 35.00 30.00 30.00 Managers, Fixed Income Total Fixed 55.00 55.00 55.00 55.00 Managers, Equities Large Cap 40.00 45.00 40.00 40.00 Mid Cap 60.00 60.00 55.00 60.00 Small Cap 40.00 40.00 35.00 35.00 International 45.00 50.00 55.00 55.00 Large Growth 45.00 40.00 40.00 40.00 Real Estate NCREIF 41.67 45.45 40.00 50.00 Total Fund 0.99 0.99 0.99 0.99 Managers, Fixed Income Total Fixed 0.88 0.88 0.88 0.89 Managers, Equities Large Cap 1.00 1.00 1.00 1.00 Mid Cap 1.00 1.00 1.00 1.00 Small Cap 1.00 1.00 1.00 1.00 International 0.20 0.24 0.25 0.13 Large Growth 0.92 0.93 0.93 0.93 Real Estate NCREIF 0.23 0.13 0.09 0.23 Page 20 BCAB BCAB * S&P600 R1000G R-SQUARED S&P500 S&P400 * 25% S&P 500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Non-US World Gov't Bond, 26% BCAB, 5% RE S&P600 EAFE R1000G June 30, 2015 EAFE Palm Beach Gardens Police Pension Fund Batting Average: 5-Years Trailing (or Inception if Less) BATTING AVERAGE S&P500 S&P400 Current Policy * Qtr YTD 1Yr 3Yr 5Yr 10Yr Great Lakes - Large Cap - Gross Size 0.08 7.68 8.97 18.19 17.89 8.78 Highland Capital Management, Inc - Core Value - Gross Size -0.55 7.80 6.82 18.95 14.83 7.58 Logan Capital Management - Large Core 60/40 - Gross Size 0.75 9.90 10.83 15.96 19.77 10.25 Russell 1000 0.11 6.67 7.37 17.73 17.58 8.13 S&P 500 0.28 6.22 7.42 17.31 17.34 7.89 Dana Investment Management - Large Growth - Gross Size -0.50 12.21 12.24 19.06 18.80 9.95 Garcia Hamilton & Associates - Quality Growth - Gross Size 0.92 9.31 12.62 15.46 16.40 7.94 Logan Capital Management - Large Cap Growth - Gross Size 1.64 12.57 12.74 19.12 18.49 9.05 Montag & Caldwell, Inc. - Large Cap Growth - Gross Size 1.62 8.99 8.81 15.16 15.81 9.10 Sawgrass Asset Management, LLC - Large Cap Growth Equity - Gross Size -0.96 6.81 8.54 17.34 18.02 8.75 Silvant Capital - Select LCG Stock - Grosss Size 3.64 11.84 11.74 15.77 16.03 8.36 Russell 1000 Growth 0.12 8.94 10.56 17.99 18.59 9.10 S&P 500/Citigroup Growth 0.31 8.00 10.07 17.79 18.65 9.04 Rhumbline Large Cap(FYE)0.27 6.25 7.44 17.26 17.32 8.00 Rhumbline Mid Cap(FYE)-1.05 10.80 6.39 18.53 17.89 9.83 Rhumbline Small Cap(FYE)0.22 14.45 6.78 18.79 18.41 9.36 Highland Capital Large Growth(FYE)1.66 13.25 12.21 21.35 18.06 n/a International Equity(FYE)0.63 2.99 -1.57 13.72 11.49 n/a Page 21 Performance of Other Managers June 30, 2015 CORE EQUITY GROWTH EQUITY Qtr YTD 1Yr 3Yr 5Yr 10Yr Ceredex Value Ad Large Cap Value 0.06 3.31 2.52 17.90 16.68 9.21 Highland Capital Management, Inc - Core Value - Gross Size -0.55 7.80 6.82 18.95 14.83 7.58 RBC Global Asset Management, Inc. - Large Cap Value - Gross Size 0.43 6.98 6.51 17.39 16.91 7.98 Russell 1000 Value 0.11 4.34 4.13 17.34 16.50 7.05 S&P 500/Citigroup Value 0.24 4.30 4.57 16.84 16.01 6.66 Amalgamated Bank - LongView 400 MidCap Index Fund - Gross Size Chicago Equity Partners, LLC - Mid Cap Core Equity - Gross Size -1.46 8.83 5.92 19.29 19.67 8.86 Robeco Investment Management, Inc. - BPAM Mid Cap Value Equity - Gross Size -1.44 11.83 9.66 22.56 21.27 12.74 Russell Midcap -1.54 8.44 6.63 19.26 18.23 9.40 S&P Midcap 400 -1.06 10.81 6.40 18.60 17.82 9.74 Great Lakes - SMID - Gross Size -0.36 13.07 8.17 23.11 21.73 10.92 Kayne AndersonRudnick - SMID Core - Gross Size -0.05 16.15 13.59 17.71 17.03 9.50 Russell 2500 -0.34 11.90 5.92 18.66 17.85 9.09 Rhumbline Large Cap(FYE)0.27 6.25 7.44 17.26 17.32 8.00 Rhumbline Mid Cap(FYE)-1.05 10.80 6.39 18.53 17.89 9.83 Rhumbline Small Cap(FYE)0.22 14.45 6.78 18.79 18.41 9.36 Highland Capital Large Growth(FYE)1.66 13.25 12.21 21.35 18.06 n/a International Equity(FYE)0.63 2.99 -1.57 13.72 11.49 n/a Page 22 VALUE EQUITY MID-CAP EQUITY SMID-CAP EQUITY Performance of Other Managers June 30, 2015 Qtr YTD 1Yr 3Yr 5Yr 10Yr Great Lakes - AllCap - Gross Size 0.15 9.43 9.41 19.09 19.06 8.64 HGK Asset Management - All Cap - Gross Size 0.53 1.51 -0.05 16.21 15.71 8.29 Highland Capital Management, Inc - Multi-Cap Eq. - Gross Size -1.40 5.38 7.48 14.32 11.25 10.24 Oak Ridge Investments, LLC - All-Cap - Gross Size -0.04 12.49 14.36 18.24 18.22 9.09 Russell 3000 0.14 7.28 7.90 17.73 17.54 8.15 Dow Jones Wilshire 5000 (Full Cap)0.06 7.02 7.11 17.47 17.34 8.17 Atlanta Capital Management Co., LLC - High Quality Small Cap - Gross Size 1.36 19.38 13.09 19.41 20.23 12.90 Ceredex - Value Ad Small Cap Value - Gross Size 1.37 14.57 2.86 17.53 16.70 11.33 GW Capital, Inc. - Small Cap Value Equity - Gross Size -3.93 2.11 -8.64 13.22 14.01 8.49 Kayne Anderson Rudnick Invst. - Small Cap - Gross Size -0.39 13.56 10.38 14.70 17.68 10.50 Sawgrass Asset Management, LLC - Small Cap Growth Equity - Gross Size 0.00 17.24 15.47 20.02 20.26 6.53 Silvant Capital - Small Cap Growth - Gross Size 1.58 16.61 8.76 17.65 18.66 8.62 Russell 2000 0.42 14.94 6.49 17.81 17.08 8.40 S&P SmallCap 600 0.19 14.42 6.72 18.81 18.44 9.28 American Realty Advisors - Core Equity Real Estate-Sep. Accts. - Gross Size 4.45 6.32 12.95 12.25 13.42 6.44 JPMorgan Asset Management - Strategic Property Fund - Gross Size 3.96 6.81 12.87 13.44 14.56 7.82 Principal Global - Real Estate Core - Gross Size 3.19 7.86 14.85 13.93 15.67 6.97 Dow Jones Wilshire REIT Index 4.66 20.51 25.24 14.25 16.15 9.60 NCREIF Property Index 3.57 6.72 12.71 11.46 12.75 8.38 Harding Loevner - International Equity - Gross Size 0.43 4.60 0.96 11.84 10.81 8.85 Harding Loevner - Emerging Mkts. Equity - Gross Size 0.72 -1.25 -5.49 7.37 7.57 10.29 Highland Capital Management, Inc - International ADR Equity - Gross Size -0.28 0.80 -3.23 10.83 9.50 5.58 Thornburg Investment Mgmt. - International Equity - Gross Size 4.91 11.40 9.52 12.15 9.86 8.33 MSCI EAFE 0.84 2.14 -3.82 12.45 10.03 5.60 MSCI EMERGING MARKETS 0.82 -1.46 -4.77 4.08 4.03 8.46 Rhumbline Large Cap(FYE)0.27 6.25 7.44 17.26 17.32 8.00 Rhumbline Mid Cap(FYE)-1.05 10.80 6.39 18.53 17.89 9.83 Rhumbline Small Cap(FYE)0.22 14.45 6.78 18.79 18.41 9.36 Highland Capital Large Growth(FYE)1.66 13.25 12.21 21.35 18.06 n/a International Equity(FYE)0.63 2.99 -1.57 13.72 11.49 n/a Page 23 SMALL CAP EQUITY REAL ESTATE (3/31/2015) INTERNATIONAL EQUITY Performance of Other Managers June 30, 2015 ALL CAP EQUITY Qtr YTD 1Yr 3Yr 5Yr 10Yr Garcia Hamilton & Associates - Fixed Aggregate - Gross Size -2.71 1.74 2.31 4.04 5.15 6.17 Montage & Caldwell Inc. - Core Fixed Income - Gross Size -0.69 2.05 2.28 1.62 2.87 4.51 Sawgrass Asset Management, LLC - Core Fixed Income - Gross Size -1.66 1.33 1.47 1.95 3.47 4.82 RBC Global Asset Management, Inc. - Broad Market Core - Gross Size -1.55 2.17 2.50 2.36 3.86 4.34 Wedge Capital Management - Core Fixed Income - Gross Size -1.56 1.70 1.95 2.69 3.97 5.20 Barclays Aggregate Bond -1.68 1.69 1.86 1.83 3.35 4.44 Barclays Gov/Credit Bond -2.10 1.52 1.69 1.76 3.52 4.39 Barclays High Yield US Corporate Bond 0.00 1.50 -0.40 6.81 8.61 7.89 Garcia Hamilton & Associates - Intermediate Fixed Income - Gross Size -1.08 1.92 2.08 3.65 4.49 5.56 RBC Global Asset Management, Inc. - Intermediate Core - Gross Size -0.62 1.82 1.75 1.99 3.21 3.74 Sit Investment Associates, Inc. - Intermediate Govt/Corp - Gross Size -0.36 2.95 3.77 2.99 4.34 5.28 Barclays Intermediate Aggregate -0.67 1.85 1.89 1.74 2.89 4.22 Barclays Gov/Credit-Intermediate -0.62 1.71 1.68 1.60 2.79 4.02 Brandywine Global - International Fixed Invst. Grade - Gross Size -2.42 -5.23 -7.97 1.64 4.72 4.83 PIMCO - Non US Fixed Income Unhedged - Gross Size -2.44 -6.80 -10.35 -1.21 3.38 4.89 Wells Capital Mgmt. - Global Fixed Income Ex-US - Gross Size -3.03 -8.03 -11.87 -1.33 2.24 4.27 Citigroup World Government Ex-US -1.54 -8.57 -13.49 -3.88 0.32 2.63 Highland Capital Fixed Income(FYE)-1.58 0.80 0.89 1.02 2.90 3.64 International Bonds(FYE)1.42 0.95 -0.68 2.02 n/a n/a American Realty(FYE)3.47 9.46 11.42 11.47 n/a n/a Page 24 INTERMEDIATE FIXED INCOME INTERNATIONAL FIXED INCOME Performance of Other Managers June 30, 2015 CORE FIXED INCOME M E M O R A N D U M To: Interested Parties From:Board of Trustees Palm Beach Gardens Police Officers’ Pension Fund Subject:New State of Florida Pension Reporting Requirements Date:June, 2015 This Memorandum is intended to provide background and additional disclosures to accompany the new state reporting required by Section 112.664, Florida Statutes. The Board is pleased to provide this memorandum as a service to the active membership, retirees, beneficiaries, and interested members of the public in an effort to answer anticipated questions in connection with the Board's new Section 112.664 Report. Legal Protections Article X, Section 14, of the Florida Constitution specifically protects pension benefits for public employees and mandates that Florida governmental pension benefits are required to be funded "on a sound actuarial basis." According to state statute (Section 112.64(2)), the total contributions to a retirement system "shall be sufficient to meet the normal cost of the retirement system or plan and to amortize the unfunded liability." All Florida cities are required to make these mandatory employer contributions to the pension plan at least quarterly. The required contributions are actuarially determined by the independent actuary employed by the Board of Trustees. If a municipality fails to comply with its mandatory pension contributions, the Department of Management Services in Tallahassee is empowered to withhold state funds and tax revenue. See §112.63(4)(b), Florida Statutes. Thus, unlike widely reported examples of pension underfunding in other states, Florida law mandates "funding discipline" by the plan sponsor. Funding Discipline As a result of the legal protections for governmental pensions in Florida, by law the Retirement Plan will never become insolvent because it is required to be actuarially funded. The Retirement Plan is actuarially funded through a combination of investment earnings, municipal, member, and state contributions. Memo from Board of Trustees New State of Florida Pension Reporting Requirements Page 2 of 3 June, 2015 Discount Rate/Investment Earnings Assumption In order to properly fund the retirement system, the Board's actuary uses several assumptions and federally approved actuarial methods. One of the most important assumptions is the "discount rate," which is otherwise referred to as the Plan's "investment earnings assumption." Even though the discount rate is a long term projection, the Board reviews the investment assumption annually and works closely with independent plan fiduciaries to make sure that plan assets are invested consistent with a long term investment policy. Although investments fluctuate from year to year, the Board has purposely chosen a discount rate which is supported by long term investment performance and financial projections. Unrealized Gains Financial markets have performed well for the past several years, following the market correction in 2009. For example, the annualized rate of return by the Standard & Poor's 500 ("S&P 500") index has been approximately 13% per year for the past several years. As a result of the strong equity returns for the past several years, most governmental pension plans have yet to recognize all of the resulting actuarial gains. Accordingly, it is noteworthy "unrealized" investment gains have not yet been recognized in the Board's Section 112.664 Report or the Board's FY 2014 valuation. Sensitivity Testing The new law requires the Board to provide hypothetical "run out" dates, assuming that the Board used a theoretical investment return assumption of 2.00% less than the Board's current discount rate. All things being equal, the use of a lower investment return assumption will lower the Plan's current funded ratio. The law also requires the Board to include in the new Section 112.664 Report additional "run out" dates, assuming that the plan sponsor stopped contributing to the Retirement Plan. As described above, Florida law mandates funding discipline by plan sponsors. Accordingly, the hypothetical run out dates in the required report are an academic exercise which do not impair the ability of the Board to pay constitutionally protected benefits. In addition to the "run out" dates required by the law, the Board also directed its actuary to project the Retirement Plan's valuation using an investment return assumption of 200% higher than the Board's current discount rate. In other words, the Board is of the view that proper "sensitivity testing" requires the evaluation of several possible investment return scenarios. For this very reason, new Governmental Accounting Standards Board ("GASB") requirements were recently implemented across the country. In fact, the Board's FY 2014 valuation contains a projection of benefit payments for the next 100 years. A copy of the Board's FY 2014 valuation containing the new GASB 67 100 year projection is available upon request, as are the additional sensitivity testing calculations performed by the Board's actuary. Memo from Board of Trustees New State of Florida Pension Reporting Requirements Page 3 of 3 June, 2015 Amortization schedule Defined benefit pensions are paid monthly over a retiree's or beneficiary's lifetim e. As a result, pension trustees invest with a long term investment horizon. By law, Florida governmental plans are permitted to amortize their liabilities over thirty years. W hile the "funded ratio" of many Florida governmental plans is less than 100%, it is anticipated if all assumptions are borne out that the Retirement Plan will be approximately 100% funded at the end of the 30 year amortization period. Many professionals consider the Board's amortization schedule to be similar to a 30 year mortgage. The remaining balance on one's mortgage is usually less important than the ability to make the full monthly payments. Portfolio diversification As long term investors, the Board employs a long term investment strategy which is based on a written investment policy. The Board retains a qualified investment consultant who monitors the Board's portfolio, as a fiduciary, consistent with the Board's investment policy. The Board's investments are diversified into several assets classes managed by different investment advisors in order to minimize volatility in the portfolio. The past five years of investment returns (along with the allocations of cash, equity, bond and alternative investments) are provided on this web site as well. A copy of the Board's quarterly investment reports are also available upon request. To see the Board’s State produced fact sheet, see the following web site: https://www.rol.frs.state.fl.us/forms/PALM_BEACH_GARDENSPolice.pdf H:\PBG 0003\Board\2015\Pension Reporting Requirements.wpd