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
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(
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:
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
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End March End April End May End June Year-To-Date
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40
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32,855.61 33,096.34 34,221.20 34,537.60 314,381.38
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27,333.57 (88,671.79)(95,861.68)(221,403.80)(159,808.56)
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54,513.81 0.00 0.00 0.00 58,303.03
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64,183.46 0.00 0.00 97,783.53 175,866.45
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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
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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
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