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Home My WebLink AboutAgenda Fire Pension 051809 PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND Meeting of Monday, May 18, 2009 Location: Council Chambers, Palm Beach Gardens City Hall 10500 North Military Trail Palm Beach Gardens, FL 33410 Time: 9:00 A.M. A GENDA 1. Call Meeting to Order 2. Minutes of Meeting Held March 16, 2009 3. Investment Manager Report: Dana Investment Advisors 4. Investment Monitor Report: Bogdahn Consulting 5. Attorney Report: Bob Sugarman • Discussion on Share Accounts with a Negative Balance o Letter from Jerry Catoe • Discussion on Status of DROP Fixed In come Interest Election Options 6. Administrative Report: Margie Adcock • Disbursements 7. Other Business 8. Schedule Next Meeting: Monday, July 20, 2009 at 9:00 A.M. 9. Adjourn PLEASE NOTE: Should any interested party seek to appeal any decisi on made by the Board with respect to any matter considered at such meeting or hearing, he will need a record of t he proceedings, and for such purpose he may need to insure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. In a ccordance with the Americans With Disabilities Act of 1990, persons needing a special acco mmodation to participate in this m eeting should contact Tegrit Plan Administrators, LLC no later than four days prior to the meeting. PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND MINUTES OF MEETING HELD March 16, 2009 A meeting of the Board of Trustees was called to order at 9:10 A.M. at Council Chambers, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES OTHERS Tom Murphy Margie Adcock, Administrator Rick Rhodes Bob Sugarman, Attorney Richard Hitchins Joe Bogdahn, Investment Monitor Ed Morejon Brad Armstrong, Actuary Roy Olliff MINUTES The Board reviewed the minutes of the mee ting held January 12, 2009. It was noted that the vote on the actuarial study requested by th e City passed 3-2 with Mr. Rhodes and Mr. Morejon opposing the motion. A motion was ma de, seconded and carried 5-0 to accept the minutes of the meeting held January 12, 2009 as corrected. The Board reviewed the minutes of the meeti ng held February 2, 2009. It was noted that there was a typographical error in that Hurs t tool was misspelled. A motion was made, seconded and carried 5-0 to accept the minutes of the meeting held February 2, 2009 as corrected. ACTUARY REPORT Brad Armstrong appeared before the Board. He presented the September 30, 2008 Actuarial Valuation which determines contribu tions for the fiscal year beginning October 1, 2009. He stated that the news is not good in this particular report. He also noted that the report does not reflect any investment ac tivity after October 1, 2008. He stated that the principal sources of experience losses were: a loss of approximately $.9 million due to the rate of return on the value of assets of 3.8% versus the assumption of 8.25% gross and a loss of approximately $.7 million due to a 6.7 average salary increase versus an expected salary increase of 5.3%. Mr. Arms trong discussed the contribution requirement. He stated that the City contribution requi rement increased by 2.55% of payroll to 33.73% of payroll. The Share Accounts to taled $4,236,245 as of September 30, 2008. The funded ratio increased from 53.9% to 56.8% excluding the Share Accounts. If the Share Accounts were included, the funded ratio increased from 59.1% to 61%. There was discussion on including the Share Accounts in the funded ratio. Mr. Armstrong stated that the Share Accounts were part of the Fund and increase the 120% corridor limitation. Mr. Armstrong noted that the Fund is in a more favorable position than most of the other pension plans in the State because there are positive cash flows and future cash flow requirements are not going to emerge rapidl y. There was discussion on whether people 2 in the DROP count for payroll in the report to the Share Accounts. It was noted that 2% of payroll comes off the top and people in th e DROP receive Shares, so it is included for those in the DROP. Mr. Armstrong noted that the Board had prev iously decided to trend down amortization to 25 years and keep it at 25 years. The shorter amortization period means higher contribution rates. He stated that 25 years is reasonable and prudent and corresponds to a firefighters career. He noted that the di fference between 25 and 30 years is pretty modest. However the difference between 25 and 15 or 20 years is substantial. It was noted that the 25-year amortization period wa s adopted in response to the unfunded ratio situation several years ago when the City hi red Bolton Partners to review the pension plans and that was one of their recommendations. Mr. Armstrong stated that the total normal cost was 24.90%; the total unfunded actuarial accrued liability cost was 14.36%; the administ rative and investment expenses were 2.38%, leaving the total calculated contribution requirement to be 41.64%. He noted that the member contribution was 6% and the 175 contributions was 1.91% (based on the 2% member portion with a one-year lag). Mr. Armstrong reported that the City’s contribution was 33.72% or $3,550,238 to be contri buted during the fiscal year beginning October 1, 2009 versus the amount of $3,180,731 last year. Mr. Armstrong reviewed the derivation of fundi ng value of assets and discussed the four- year smoothing. He stated that for th e fiscal years ending 2009, 2010 and 2011 the Fund would have negative experience from the investment loss in 2008. He provided a projection of employer contributions under varying investment returns as requested by the City. He reviewed the various scenar ios with the Board. There was a lengthy discussion. It was noted that the City was l ooking at FRS. It was al so noted that FRS has had huge losses. Mr. Armstrong stated that if there is no drastic and quick market recovery, that will have a significant imp act on FRS. A motion was made, seconded and carried 5-0 to approve the September 30, 2008 Valuation. There was discussion on the 2% deduction from the Share Accounts and the effect of someone entering the DROP. Mr. Sugarman revi ewed the Ordinance. He stated that the 2% is an employee contribution. He further noted that the DROP Plan provides that employee contributions cease once someone ente rs the DROP. Therefore, the 2% for DROP members is no longer deducted from their Share Account because it is an employee contribution and they no longer make employee contributions once they go into the DROP. There was then discussion on th e PLOP and how that effects the 2% deduction from the Share Accounts. It wa s noted that the Fund would get the 2% throughout a person’s entire career. It was also noted that if someone does the PLOP, the employee continues to put in the 6% empl oyee contribution as well. For someone considering the PLOP, all of the pay in thei r career will be considered. The PLOP does not cost the City any more money, as it is just an optional form of payment. It was noted that with the PLOP, a person is giving up the COLA on the lump sum payment. 3 ATTORNEY REPORT There was a discussion on the two Share Account s with a negative balance. It was noted that Mr. Armstrong had provided some questi ons to Mr. Sugarman, which he responded to. A couple people were paid out early and the value of their Share Account went down. Mr. Sugarman stated that the Board needed to decide whether it wanted to stop making advance payments. The Board could stop ma king payments early and make people wait for a distribution. He stated that the Boar d also needed to decide how to recover the amount owed by the two people with a negativ e balance. There was a lengthy discussion. A motion was made, seconded and carried 5-0 to provide that for people who terminate for whatever reason, the distribution of their Share Account will be limited to 50% of the Share Account value as of the most recent Valuation date. A motion was made, seconded and carried 5-0 to direct the Administrator to send a demand letter for the amount of the overpayment with payment to be received by May 1, 2009 with no interest accruing from September 30, 2008 to the date of payment, or to have the amount deducted from their monthly checks payable to them or their survivor for 24 consecutive months covering June 1, 2009 plus interest from May 1, 2009 at the actuarial assumed rate of return of 8.25%. If either person disagrees, they have the right to appear at the May meeting, where they should call the Administrator to secure a place on the Agenda. Brad Armstrong departed the meeting. INVESTMENT MONITOR REPORT Joe Bogdahn appeared before the Board. He provided the quarterly report for the period ending December 31, 2008. He reviewed the ma jor market index performance. All equities were negative for the quarter and year to date. They are starting to see some positive corporate bond returns so they think the market is very near or at the bottom. Mr. Bogdahn reviewed the investment perfor mance for the quarter ending December 31, 2008. The total market value as of D ecember 31, 2008 was $21,214,548. He noted that the contract with Manning & Napier is pretty much ready. The asset allocation as 37,4% in domestic equities; 3.9% in international; 32.1% in domestic fixed income; 4.9% in real estate; and 21.7% in cash. The Fund was down 10.73% net of fees for the quarter while the benchmark was down 14.45%. The equ ity portfolio managed by Dana was down 23.88% for the quarter while the benchm ark was down 22.78%. The international portfolio managed by Voyageur was down 15.97% for the quarter while the EAFE was down 19.90%. The real estate portfolio ma naged by American Realty was down 7.78% for the quarter while the NCREIF was down 8.29%. Agincourt was up 7.37% for the quarter while the benchmark was up 4.58%. DHJ fixed income was up 4.66% for the quarter while the benchmark was up 3.58%. Mr. Bogdahn stated that they are working on one product with Dana regarding an option within a commingled fund. He st ated that they might be able to provide a presentation at the May meeting. Mr. Sugarman stated that the contract with Manning & Napier is completed. He is just waiting on a signed original Agreement from Manning that the 4 Board can then execute. Mr. Bogdahn provided a firm update. He stated that they are bolstering their research department, hiring two additional people. ATTORNEY REPORT (CONTINUED) There was discussion on the DROP Interest Election Option and Form. Mr. Sugarman stated that someone entering the DROP could do one of two things: they can elect interest to be the net investment return of the Fund or elect a net fixed income return. It was noted that Mr. Bogdahn would be in charge of the fixed income component. There was a lengthy discussion. Mr. Bogdahn suggested pu tting the fixed income component in the Fund. Mr. Sugarman stated that because the Ordinance provides that it will be a “net” fixed income return, so they need to prevent any decline in value. Mr. Bogdahn suggested then putting it is the money ma rket fund with the Fund. Mr. Sugarman stated that until there are a large number of people in the DR OP, the money market is probably the only option. Mr. Bogdahn suggested using the money market fund, as the Board is not trying to enhance the return but rather just tryi ng to stop the bleeding. There was a discussion on the FRS fixed rate of 6.5% on the DROP. Mr. Sugarman stated that the Ordinance would need to be changed to get a guaranteed fixed rate. Mr. Bogdahn stated that he could have the Custodian set up a separate money market account for the DROP. It was noted that the Ordinance provides for a fixe d rate money market fund. However, because there is no fixed rate money market fund, it would be a fixed income return. It was noted that the language in the Ordinance is problematic. It was also noted that the Ordinance provides that an administrative fee shall be charged. There was further discussion. Fire Chief Bergel entered the meeting. The Board discussed the issues with the Chief. It was noted that the Ordinance provides that a DROP participant can elect a fixed ra te money market fund as may be available by the Board but the Board cannot find one. Th e Board can find a money market fund and can pass on whatever rate the Fund gets, which is pretty low right now. It was noted that they could either change the Ordinance, whic h will take a lot of time and is questionable as to whether it is a possibility or just put the money in a money market fund. It was noted that the Palm Beach Gardens Police Pe nsion Plan and FRS have a guaranteed rate, but the Board would need to bring that befo re City Council in order to get a guaranteed rate for this Fund. There was discussion on the administrative fee and the calculation of the DROP account balances. A motion was ma de, seconded and carried 4-1 to charge $1 a year for the administrative fee on the DROP accounts. Mr. Morejon opposed the motion. Richard Hitchins departed the meeting. Mr. Sugarman stated that he would draft an Ordinance regarding the interest rate election for the DROP. There was a discussion on th e provision of the Ordinance. A motion was made, seconded and carried 4-0 that having b een advised by the Investment Monitor that a “fixed rate money market fund” as called for in the Ordinance is not available, the 5 Board chooses not to make that option available to future Participants in the DROP at this time. A motion was made, seconded and carried 4-0 that with respect to the current Participant in the DROP, because an amendmen t in the Plan has been proposed offering a fixed rate option, the Board will give him an opportunity to have his DROP deposits placed into the Plan’s money market fund until such time as the proposed amendment is adopted or rejected by the City Council. ADMINISTRATIVE REPORT Ms. Adcock presented the list of disbursements to be made. A motion was made, seconded and carried 4-0 to approve the disbursements listed. OTHER BUSINESS Mr. Murphy stated that he would like for the Board to approve the payment for a gift of recognition of service for Steve Rogers for all of his years of dedication to the Board. It was noted that the Board had provided a prior Trustee, Dr. Philip Buttaravoli, with an axe when he resigned from the Board. A moti on was made, seconded and carried 4-0 to authorize Mr. Rhodes to make arrangements for a gift of recognition of service for Steve Rogers not to exceed $300. There being no further business, the meeting adjourned. Respectfully submitted, Tom Murphy, Secretary WWW.BOGDAHNGROUP.COM City of Palm Beach Gardens Firefighters' Pension Trust Fund Quarterly Review 1 st Quarter 2009 mE The Market Environment Major Market Index Performance Period Ended: March 31,2009 s&P 500 Russell3ooO Russell 1ooO RuueIIMidCap Russell ZW0 Barclays US Agg. Barclays US Gw. BarclaysMBS Flxed Barclays Cap IG 3mm. Tail1 1 -11.0% -1OdX -10.5% -9. .15.0% 0.4% -1.0% 2.2% I -1.9% ~ 0.1% I MSCl Emerg Mktr. Fin Year Annualized Performance MSCl EAFE -1dY 6.3% S&P 5w R11.sell3OW RusMIIlooO RuueIIMidCap Russell2WO Barclays USAgg Barclays US Gav. Barclays MBS Fixed Barclays Corp IG 3mos. Tail1 MSCl EAFE MSCl Emerg. Mkts. ShP 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays CorplG 3mm. T-Bill j One Year Performance1 48% 48.ok 48.1% 40.8% 1.1% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 1 Ten Year Annualized Performance 1 I ~ 9.5% 8.1% -8.0% 4.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% MSCl EAFE MSCl Ernerg. MMI. s(LP 500 Russel13000 Russell 1000 Russell MidCap Russell2000 BarclaysUSAgg. Barclays US Go". Barclays MBS Fired Barclays Corp IG 3mor. T-Bill Sarm: MSCl CapM Mafiets, Russet/ Investments, Barcbys Capital 8 Wdahn Consudrng, LLC 2 p1.% 2.3% mlll_ ! 62% ' 11' 4.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% ? ME <> BOGDAHN GROUP %O'ZL %O'OL %OB %0'9 M't %O'Z %OO The Market Environment Russell Style Index Performance Period Ended: March 31. 2009 3000Value 3000 Index jooo Growth 1000Value 1WOlndex 1WOGrowth MidCapValue MidCaplndax MidCapGrarth MWValw Mw Inder MwGrmrth [Quarter Performance I -1bOX I -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% Five Year Annualized parfom~~e I MWValw 3000 Index joootrowth 10WVaIm 1WO Index 10WGrowth MidCapValue MidCaplndax MidCapGrarth 2OI)OValw 2WO Index 2000Grmrth MOOValw 3000 Index 3000Grcmth lO00Value 1000 Index 1WOGrowth MidCapValw MldCaplndex MidCap Growth MW Value 2000 Index 2000Grcmth I I 3000Valw 3000 Index 3000 Growth 10OOvalw tWOlndex 10WGrowth MidCapValw MidCaplnder MidCapGrowth ZOOOValw 2000 Index 2000 Growth -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% [Ten Year Annualized Performance -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% Source Russel hveshnents 4 46001 %00 XO'OL- %UOZ- %O'OF- %OW- %OW %O09 %O'OL. 3 - %O'OL %O'O %OOL- XOOZ- W'OE- %OOF %O'OS- %0'09 %OOL- %O'Ol %OO %o'oL- %Ooz- %o"- 9bO'Or- %Om- %0'09- %O'OL %O'OL %O-O %OOL- %OOZ- %O'oE- %OW- %O'OS- %OO9 %O'OL- The Market Environment Domestic Credit Sector & Broad Market Maturity Performance & Rate Comparison Period Ended: March 31,2009 MA AA A BBB CBBB 1-3Yr 1JYr 1-1OYr 1WYr -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 0.0% 1mMarketRates 7.00 -Fed Funds Rate -TED Wead -3-Monthbbor -WIDyrSpead 6.00 3.w 4.w I 2.00 1 0.04 ' Jan-09 FebO9 Mar-09 Sourn: Man?# Lynch , Mcftgage-X.com , US Department of Treasury & St. Louis Fed 6 AAA AA A BBB <BBB 1-3Yr I-5Yr 1-1OYr 1W Yr One Year Pwfonnancel -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% Treasury Yield Curve 6.00 +12/31/2047 &9/30/2008 +12131/2008 +3/31/2009 5.00 4.00 3.00 2.00 1.00 n nn Imo 3mo 6mo lyr 2yr 3yr 5yr 7yr lOyr 20yr 30yr qJ T BOGDA" GROUP 0 S 01 oz City of Palm Beach Gardens Firefighters' Pension Trust Compliance Checklist as of 03/31/2009 ~ .. . . ~ . . .. ... ~~~ ~..~~ ~ ~ ~ ~ 1. ~ 2. 3. 4. The Total Plan return equaled or exceeded the 8.25% actuarial earnings assumption over the trailing three and five year periods. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. The Total Plan standard deviation was equal to or less than 120% of the total plan benchmark over the trailing three and five year periods. J J J J 1. Total domestic equity returns meet or exceed the benchmark over the trailing three and five year periods. J ~ 2. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods i 3. The total equity allocation was less than 75% of the total plan assets at market. 14. The total equity allocation was less than 65% of the total plan assets at cost. ~ 5. Total foreign equity was less than 10% of the total plan assets at cost. I I r~~ ~~~~ ~~~~~~ ~~ ~ ,I 1. Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. J 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. 3. The average quality of the fixed portfolio was investment grade or better. ~ ..... . .. J J ~ 1. 2. 3. 4. Three-year down-market capture ratio less than the index. J Manager outperformed the index over the trailing three and five year periods. Manager ranked within the top 40th percentile over trailing three and five year periods. Less than four consecutive quarters of under performance relative to the benchmark. 5. Standard deviation <= 150% of the index over the trailing three and five year periods. J J J J J J J J I J J J J 8 Total Fund Portfolio March 31,2009 December 31,2008 : $21,214,548 March 31,2009 : $21,233,535 A A Segments Market Value Domestic Equity 7,938,052 W International Equity 816,868 W Domestic Fixed Income 6,818,003 Real Estate 1,043,834 Cash Equivalent 4,597,792 6) 10 Allocation Segments (Oh) 37.4 Domestic Equity 3.9 W International Equity 32.1 W Domestic Fixed Income 4.9 Real Estate 21.7 Cash Equivalent Market Value 7,384,405 738,124 7,075,352 9 0 7,O 7 7 5,128,577 ($) . Allocation (W 34.8 3.5 33.3 4.3 24.2 ?; THE <- BOGDA" GROUP E'P L'9 1'91 €81 Z61 P'SE (%) UO!IE3O[W Palm Beach Gardens Firefighters' Asset Allocation As of March 31,2009 Dana Equity Portfolio 16,564.740 7J.34 IL.4Y4.6Y4 34.11b Voyageur International Portfolio 1,637,111 7.25 2,129,248 9.35 American Real Estate Fund 1,124,052 4.98 1,138,272 5.00 Agincourt Capital Management Fixed Davis,Hamilton,.Jackson & Assoc. Fixed 3,780,194 16.60 Galliard Fixed Income Portfolio 3,259,631 14 43 3.234.747 14.20 Receipt& Disbursement IL.114O.Y8U 30.86 I1.433.75Y 1,777,953 7.87 1,494,077 1,131,896 5.01 1,043,834 3.166.758 14.02 3.400.215 3,671,436 16.25 3.842.664 33.YU 7,513,927 33.39 1,417,647 6.68 7.04 4.92 907,077 4.27 16.03 3.422.759 16.12 18.11 3,891,569 18.33 4.080.557 19.22 22,585,534 1w.w 22.777.155 100.00 225%.&?4 100.00 21,214548 lW.W 21,233,335 100.00 Historical Asset Allocation By Segment 1 9/08 1WO8 11108 12/08 1/09 2/09 3/09 I Domestic huitv I Internationalhuitv Domestic Fired Income RealEstate Cash muivalent 0.0 12 Palm Beach Gardens Firefighters' Financial Reconciliation As of March 31,2009 Voyng~ur Insmtiod Portfolio 1,494,017 1.760 -1.760 Ammican Rcal €$lata Fwd 1.043.834 Agmcom Capital Managcnirnl 3.4W.215 2,045 .2,045 Davia,Hm?ilton,Jackson & As= Fmod 3.842.664 2,402 -2.402 Cnlisrd Fixed Immc Patfolio Re&@ & hahnanmt 4,109,048 97,825 -90.587 2,315 -78.745 -336.757 40202 -17.658 49.821 -91 43.051 7,321 -43,0051 139381 -889,837 21314.548 940.6% -108,671 -19,531 Financial Reconciliation FYTD 5,541 -365,846 l.417.647 hWlicpRalE.1*cFd 1.131.896 -224,819 907.077 mc*it.l hkmpnal 3.166.758 2.372 -2,372 81,055 174.945 3.422.759 ).vis.HamihoaJ.ckuDn & Aaw. Fixed 3,671.4M 4,696 4.696 IW.854 119.279 3.891.569 Mmd Fird lnmc Pntfolio l<C+.t&Disl"mumt 4.109.048 97.825 -90.587 -43.051 7.321 4,080,557 hbtlclhrcu uSMw4 2,133,741 -1- -58,710 54b(( 307353 -3mm 21,233535 ? THE 13 /c-l BOGDAHN GROUP VIN VIN VIN LO'O L9sz- LS'LZ- POLI- V/N VIN VIN VIN EP'P- S8'P- LL'S- V/N VIN CP'6 V/N 56.1 (1) 9l.t (I1 L9PI- (I) IOSI- (1) EEL- 9OOUIO/BO V/N IZW V/N VIN V/N (9Z) 01'61- (Of) 98'61- (Of) OI'fl- V/N SZO- L8'E- 09'ZI- OorP- 1065- II'EI- SS'P VIN VIN 19E PO9 ZL'OI EL3 V/N 0901- (9L) SL'I- (9L) PO'S- (Si) LO'PI- IOLJ OZ9P- (OL) 660E- (SS) S8.51- 9OOUIO/IO V/N S09- V/N V/N (9E) 9P'OI- (9Z) 91'0P- (d LZOZ- (1) ZI'S- VIN 6L'E- $99- IS'ZI- LoLr- 8L'6Z- 6VO1- 590 981 1L.1 69'0 19z Pp' I 81's V/N CCZ- (P8) E8.P- l6L) IS'L- (6L) S5.21- (fL) OZ8E- (18) SI'IE- (LS) 08'01- ZOOZ/10/90 V/N 891- (SE) L6Z- (Sf) OB'S- (65) 98Z1- (Sf) 6S'Sf- (8P) 896Z- (81) Z9L- PZ I s9z ZS'Z LSZ 689 IOL E8'E PZ I u.1- OZ'E- IZL- CS'LZ- 51'12- $8.1- 866I/lO/EO EWZ ZEO are- w't- w'oz- vrvr- wv- Palm Beach Gardens Firefighters' Comparative Performance As of March 31,2009 Total Fund Policy Difference Mixed-Asset Target Alloc Moderate Funds (MR Median Total Fad POddIO (GI'OM) Total Fund Policy Difference Dana Eqnily Portfolio Dana Equity Policy Diffemnce US Core/Large Cap Qui@ (SA+CF) Median Voyageor International Portfolio MSCI EAFE Index Difkrence International Active Value Equity (SAKF) Median American Rnl Estate Fond NCREIF Property Index Difference US Private Real Estate-Open End (SA+CF) Median Aginconrt Capital Management Barclays Capital Aggregate Difference US Intermediate Duration Fixed Income Accounts (SA) Median Davu,HamiltonJackmn & Assoc. Fixed Barclays Capital Intermediate Aggregate Differcncc -123 (24) -14.02 (45) 1.72 -14.54 -11.96 -14.02 2.06 -19.54 (32) -21.52 (531 1.98 -21.42 -29.87 (74) -30.13 (77) 0.26 -27.34 4.98 (38) 5.27 (31) 4.29 3.23 NIA 3.65 (42) NIA 3.24 NIA 4.16 (2.11 NIA lU.% (SM) I3 39 (27) -2.43 11.49 11.67 13 39 -1.72 14.18 (as) 16.52 (54) -2.34 16.61 24.22 (53) 2538 (43) -1.16 24.45 16.31 (81) 17.31 (68) -1.00 18.34 NIA 5 14 182) NIA 5.46 NIA 5.33 (34) NIA 7.72 (39) 9.16 (21) -1.24 7.26 8.65 '1.16 -0.51 10.21 (62) -0.01 10.78 NIA 19.65 (68) NIA 20.77 NIA 17.62 (511 NIA 17.77 NIA 3.67 (110) NIA 3.91 10.22 (62) NIA 3.84 (53) NIA 13.82 (>) 9.23 (54) 4.59 9.49 I435 9.23 5.12 21.50 (9) 12.69 (7-11 8.81 14.37 NIA 26.32 (581 NIA 26.92 NIA 19.19 (661 NIA 19.75 NIA NIA 2.11 NIA 2.23 (96) NIA 2.80 (13) IUJI (5u) %X4 (43) 0.67 9.40 11.19 9.84 1.35 15.99 (26) 13.87 (60) 2.12 14.28 NIA 22.52 179) NIA 25.41 NIA NIA 12.35 NIA 3.68 (17) NIA 2.87 12.41 (50) NIA 3.39 (81) NIA 11.42 (W) 1782 (25) -6.40 15.67 12.28 17 82 -5.54 20.02 (84) 24.411 (44) 4.38 24.02 NIA 26.54 (76) NIA 29.93 NIA 783 (82) NIA 9.60 NIA NIA 5.52 NIA 494 179) NIA 5.40 (531 -8.m (W) -10.92 (84) 2.36 -8.25 -8.13 2.79 XIA -20.49 (76) NIA -19.07 NIA NIA -6.80 NIA 5.70 (54) NIA 6.02 -1n.92 -15.26 (89) NIA 8.61 (281 NIA 8.09 NIA 7.92 (671 NIA US Broad Market Core Fixed Income (SA+CF) Median 2.56 5.16 3.86 3.11 3.79 5.79 8.56 RchnaJ for pcnods greater than one year are annuallzed Rshlms are expressed as pacentages Total Fmd~ltcy=S5% Russell 3000,30% Barclays Intermediate Aggregate. 10% MSCI EAFE, & 5% Cltlgroup Treasury Bill- 3Mo Flxed Ass& mfd from Dana to DHI, 5-3 1-2008, hed performance 111 total plan 60li 1019 SO/( 2OKl 0016 8( J 6LI- src- 80 L- pi PI- 97 $2- 6081- 000i- I 3 0002- - s - 000 0001 Palm Beach Gardens Firefighters' Total Fund Portfolio (Net) March 31,2009 30 0 0"- PcrblltMIS~ 20 0 0.00 I 10000 I , 6/04 6/05 6/06 6/07 6/08 3!09 Total Period 5-25 26Mdi.s Medimt-75 75-95 Cm.t Count COOat COOal Total Flmd Patfolio (Nr) 20 I2 (60%) 4 (200%) 3 (15%) I (5%) 0 Total Fund Policy 20 3 (15%) I2 (60%) 5(25%) 0 (0%) 3.SO 0.00 - -350- w 8 -7.00- e -1o.50- 3 2 -14.00- -17.50 5 00 LO.00 1500 20 00 Rlnk(SOnLrdlMa8on %) kmm St.ad.rd Oe\i.Com Td Fund portfolio (Nct) -5.13 8.53 0 T-1 Fd Policy -7.21 11.36 - Median -1.08 1063 s no ,.E ,w , -1 E -500- 2 -730- -1000 5 00 7 50 1000 1250 I500 17 50 RnsklSIandard =.tian X) Rtmm smdmd ~nhtia Total Flmd Patfoho (Net) 0 34 799 0 Total Fund Policy .I 73 9 83 - Mcdm .I 19 9 27 DOWdd. Risk &I* ShnT R.80 UP D- C.PUI,C C..hlr. MIIkf Msrkrf Alpha IR T.SCki.Z Emor Total Fund Ponfalio (Net) 3.59 76.24 74.07 0 07 0.52 -I 07 0.73 8W T-1 Fund Policy 0.00 lO0W loow ow N'A -0.91 I 00 10.81 Dmuid. Risk TOUl Fd Ponfolia (Ne0 3.12 91.53 68.78 I63 061 .0.32 0 78 621 T0l.l Fund Policy O.W 100w 100 w 0.w NIA 4.46 IC4 8.41 Be" Sharp* R.80 UP Dam Markt M.rkf Alpha In C.PlU,C C.pUIIC Tnckiq EIn. ? ME qJ BOGDAHN GROUP 00 O'J 00 50- 000s- ; 3 s - - 0051- 000 0051 Palm Beach Gardens Firefighters' Dana Equity Portfolio March 31,2009 n.nn 5 2500 a z soon E 7500 a ." u - .- t e 1 ioonn 1 , 644 6'0s 6/06 6107 6'0% 3'09 Tahl Period SI5 ZS3ldi." Mdim-11 1.F95 C0U.l Covnt CO."l C""", Dana Equity Ponfolio I6 9 156%) 4 (2S?61 2 113%) I 16.0) 0 DanaEqury Polncy 20 n (00.1 0 (O%, I5 (75%, 5 OS%J Dana Equity Pmfolio -12 86 16 06 Dana Equily Pal~v -13 55 16 40 Duu Equtty Podolio 0 D- Equty Policy 4 97 4 83 l4.Sl I4 SJ - Median -1251 16 22 - Median -3 19 14 40 Downside Risk Dm Equity P&h 3.18 91.11 95.15 0.18 n.22 .n.w 0.96 1601 D~~ wity misy 0.W 100.00 lW.00 n no N!A mz IW I643 kh Sharp Ratio UP D- &I.*-, Market Alpha m C..hm Cspnm 1R.ki.g E-. Dddr Ritk Dam Equily PO~liO 3.2s 108.64 91.53 1.88 0 60 4 32 098 12.19 Dsaa Equity Policy QCQ 100.00 iw.00 0.00 N!A -0.46 1.W 12.96 kh Sh.r)r Dan Ratio Mark, M.rk.1 Alphi IR UP mLig C.*h C.phlm E- ... ... .. ? THE .. ,. qJ BOGDAHN GROUP ... , 19 02 .. F .. t .. f .. 1 .. I OOPS OOOIS 0021s 00 UP 00 u Palm Beach Gardens Firefighters' American Real Estate Fund March 31,2009 -1 I (kc2008 I 2 3 4 QII.* TO YOl. Vun Year8 Y".S M.r-2009 ~Arn&unRcdErtateFvnd -13.10 (30) -19.86 (30) -19.10 (26) 4.25 (18) NIA NjA ONCRElFPm~~lndcx -7.33 (I) -15.01 (I) -14.61 (I) .l.S5 (I) 4.16 (I) 7.95 ("AI Msdian -17.04 .27 57 .25 61 -121 0 01 h-iA __ 1 Yn., s XIA 943 (NjA) N :A 11200 sinno 190 0 9/06 3/07 9:oi 1/08 9108 3/09 -Amnsm Real Estate Fund -NCREIFPropany Index NCRElF pmpaty lndcx -8 29 (26) -0 17 (411 0 56 (60) I60 (32) 321 (11) 3 56 (52) US hmtc Rd Eaated+s~ End (SA+CF) Mcdin -9 99 -0 30 0 14 I 24 I 94 3 67 ? ME <> BOGDAHN GROUP / 09015 0801s P6C 980 ILS E t E 922 160 690 Palm Beach Gardens Firefighters' Davis,HamiltonJackson & Assoc. Fixed March 31,2009 Market Vdue As 01 DamJim~ImmJa~ksm & AM= Fixed 3.843 2 -2 50 .I 3,892 C.pibl 31~1now ApprtrJ Dcprr. Contibulionr Diseibutions FCC8 EXp*aSrS 1nmnr NU 1..u*n M.+t Vnhw As oi 1rnIR008 10.00 5.00- 0.00- E % J.00- e 6 II 1 -10.00 -1500 I I 1 OrC2008 1 2 3 4 5 QU.ra. TO Ye.. Ye.., VU" VU.* Vu= Mar-1009 DM*.HnnilM.fLm&Aswnc Fwd I27 (17) 604 (21) NIA NIA N/A N/A N/A 0 BYdyrClprmImm~steA~gwc 091 (27) 452 (49) 3 39 (35) 559 (34) 5 89 (35) 499 (35) 4 15 (38) Mcmn 0 46 444 I93 4 12 5 32 4 58 3 93 $1044 $1029 4 51035- 51020. SI00S- s99 0 - 5975- $960 6/08 9/08 I2I0S 3/09 -D.vis.H.nilfonJarkson k Assoc.Fiud - Bmdnjs Capital 1otrmrdi.tr A8grcg.l~ ~~ ~ ~ ~~~~ I I I I 1 1 Endhi EdU bdbg Edbg Ediq Emding **. QoM. QUM. Quucr Q".*. QU.mr Mo(HI SCF-2008 J.D-lWB M.PlOO8 h2W7 *1w7 Dd4hdk.J- k Am.c Pied 4.u (35) 3.88 (80) NIA NIA NIA NIA kclmw- bgwc 3.58 (54) 6.13 (IS) 6.96 (52) 23s (34) 2.89 (51) 2.76 (57) WSEmodMltnCmcFixcd~(SA+CF)Mcdiaa 3.77 -1.43 4.94 1.98 290 2.81 23 ? THE qJ BOGDAHN GROUP 00001 00'001 00001 0001 0001 00SZ 0055 00 s 0001 000E OOSS 00 5 0001 OOOE 00SS 00 s OOOE 0059 00 s OOOE 0059 00s OOSE 0009 Statistics Definitions I statistics Description Return Standard Deviation Shatpe Ratio Alpha Beta R-Squared Treynor Ratio Downside Risk Tracking Error Information Ratio Consistency Excess Return Active Return Excess Risk I p Market Capture I" Down Market Capture I - Compounded rate of return for the period. - A statistical measure of the range of a portfolio's performance, the variability of a return around its average return over a specified time period. - Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is the absolute rate of return per unit of risk. The higher the value, the hdter the product's historical risk-adjusted performance. - A measure ofthe difference between a portfolio's actual returns and its expected performance, given its level of risk as measure by beta. It is a measure of the portfolio's historical performance not explained by movements of the market, or a portfolio's non-systematic return. - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of a portfolio's non-diversifiable or systematic risk. - The percentage of a portfolio's performance explained hy the behavior ofthe appropriate benchmark. High R-Square means a higher correlation of the portfolio's performance to the appropriate benchmark. - Similar to Sharpe ratio, but focuses on beta rather than excess risk (standard deviation). Represents the excess rate of return ove the risk free rate divided by the beta. The result is the absolute rate of return per unit of risk. The higher the value, the bener the product's historical risk-adjusted performance. - A measure similar to standard deviation, but focuses only on the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. The higher the factor, the riskier the product. - A measure of the standard deviation of a portfolio's performance relative to the performance of an appropriate market benchmark. - Measured hy dividing the active rate of return by the tracking error. The higher the Information Ratio, the more value-added contribution by the manager. - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. The higher the consistenq figure, the more value a manager has contributed to the product's performance. - Arithmetic difference between the managers return and the risk-free return over a specified time period. - Arithmetic difference between the managers return and the benchmark return over a specified time period. - A measure of the standard deviation of a portfolio's performance relative to the risk free return. - - The ratio of average portfolio return over the benchmark during periods of positive benchmark return. Higher values indicate - The ratio of average portfolio return over the benchmark during periods of negative benchmark return. Lower values indicate better product performance. better omduct Derformance. Caldation based on monthly peiodicity 25 GROUP simplifiing your investmenr andfiduciary decbwris