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Home My WebLink AboutAgenda GEPB 081009City of Palm Beach Gardens 10500 N. Military Trail Palm Beach Gardens, FL 33410 GENERAL EMPLOYEES PENSION FUND NOTICE OF MEETING AND AGENDA Please take notice that the Board of Trustees of the City of Palm Beach Gardens will conduct a meeting of the board at the above location on August IOth, 2009 at 2:OOPM in Council Chambers. Old Business: New Business: Approval of 6/25/09 minutes Report from Rockwood Report from Bogdahn Consulting Report from Scott Christiansen Approval of Bills Adjournment DISABILITY INFORMATION In accordance with the Disabilities Act and F.S.S.286.26, persons with disabilities needing special accommodation to participate in this proceeding should contact the Human Resource Department no later then seven days subsequent to the proceeding at (561) 799 - 4223 for assistance, if hearing impaired, telephone the Florida Relay Service Number at 800 - 955 - 8770 (VOICE) for assistance. APPEAL NOTICE If a person decides to appeal any decision made by the Board, with respect to any matter considered at such meeting or hearing, he will 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. City of Palm Beach Gardens General Employee Pension Board List of Bills to be Approved Christiansen & Dehner For: Professional Services Rendered Date: Invoice Number: 2/28/2009 16008 Amount: 2,449.07 Bogdahn Group For: Performance Evaluation and Consulting Services for 3/31/09 and 6/30/09 Date: Invoice Number: 3/6/2009 3940 6/19/2009 4199 Sawgrass Asset Management For: Quarterly Management Fee for 3/31/09 and 6/30/09 Date: Invoice Number: 4/7/2009 N/A 7/8/2009 N/A Rockwood Capital Advisors For: Quarterly Management Fee for 3/31/2009 and 6/30/2009 Date: Invoice Number: 3/31/2009 N/A 6/30/2009 N/A Salem Trust Company For: Administration for 3/31/2009 and 6/30/2009 Date: Invoice Number: 4/7/2009 NIA 7/6/2009 N/A Amount: 2,000.00 2,000.00 Amount: 647.00 639.00 Amount: 1,882.18 1.979.67 Amount: 750.00 750.00 CRY OF PALM BEACH GARDENS GENERAL EMPLOYEE PENSION BOARD SPECIAL MEETING JUNE 25,2009 6 The special meeting was called to order at 2:lO p.m. by Secretary Dindial Laliie. 7 I. ROLLCALL 8 PRESENT: Secretary Dindial Laljie, Kenneth Steele, Brandon Dorsey. 9 ABSENT: Chair Allan Owens, Jami Smith. 10 11 Pickle ALSO PRESENT: Accountant Sarah Varga, Deputy Finance Administrator Mary Anderson- 12 11. OLDBUSINESS 13 Brandon Dorsey made a motion for the approval of the Febtuary 9,2009 minutes. 14 Kenneth Steele seconded 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Motion passed, 3-0. 111. NEW BUSINESS Douglas Lozen presented the Foster & Foster report. Kenneth Steele made a motion to accept the Foster & Foster report as submitted. Dindial Laliie seconded. Motion passed, 3-0. Kenneth Steele made a motion approving the payment of bills. Motion passed, 3-0. seconded. (The remainder of this page intentionally left blank.) GENERAL EMPLOYEE PENSION BOARD SPECIAL MEETING 06.25.09 PAGE 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 IV. ADJOURNMENT Dindial Laliie made a motion to adjourn. Brandon Dorsey seconded. Motion passed, 3-0. The meeting adjourned at 2:45 p,m. The next regularly scheduled meeting will be August 10,2009. APPROVED: Allan Owens, Chair Dindial Laljie, Secretary Kenneth Steele Jami Smith Brandon Dorsey ATTEST: Donna M. Cannon Municipal Services Coordinator NOTE: These minutes are prepared in compliance with 286.011 F.S. and are not verbatim transcripts of the meeting. A verbatim audio record is available from the Office of the City Clerk. All referenced attachments on file in the Office of the City Clerk. GENERAL EMPLOYEE PENSION BOARD SPECIAL MEETING 06'25'09 PAGE 2 Sttak+y Review Presented By: D. Andrew Holtgrieve Managing Partner AndprOCkwoodcaprtal.~ Palm Beach Gardens General Employees' Pension Plan Second Quarter 2009 Review August 10, 2009 AiL ROCKWOOD CAPITAL ADVISORS objedives The Board recognizes that the obligations of the Fund are long-term and that the investment policy should be made with a view toward performance and return over a number of years. The general investment objective, then, is to obtain a reasonable total rate of return - defined as interest and dividend income plus realized and unrealized capital gains or losses - commensurate with the Prudent Investor Rule and any other applicable statute. Reasonable consistency of return and protection of assets against the inroads of inflation are paramount. However, the volatility of interest rates and securities markets make it necessary to judge results within the context of several years rather than over short periods of two years or less. P- The performance of the total Fund will be measured for rolling three and fwe year periods and compared to the return of a portfolio comprised of 65% SBP 500 Stock Index, 5% MSCl EAFE, and 30% Barclays Aggregate Bond Index. On a relative basis, performance for the combined portfolio over three to five year periods is expected to be in the 40% of the PSN Universe. Additionally, on an absolute basis, performance for the combined portfolio over three to five year periods is expected to meet or exceed the actuarial earnings assumption of 8%, and equal or exceed CPI plus 4% over three to five year periods. Authorized lnvesbnents All investments made or held in the fund shall be limited to, obligations issued by the United States Government or guaranteed as to principal and interest by the US Govt. or by an agency of the US Govt. Additionally, stocks, commingled funds administered by national or state banks, mutual funds and bonds or other evidences of indebtedness, issued or guaranteed by a corporation organized under the laws of the United States, any state or organized territory of the United States or the District of Columbia. Fixed income securities are to be ranked Investment Grade by S 8, P or Moodys. Not more than 5% of the Fund's assets shall be invested in the common stock or capital stock of any one issuing company, nor shall the aggregate investment in any one issuing company exceed 5% of the outstanding capital stock of the company. Foreign securities shall not exceed 10% of the value at cost of the fund. (Reviewed 2/09) ROCKWOOD CAPITAL ADVISORS PAGE I Palm Beach Gardens Beghning I Market I General Employees' Pension Plan EndinE I yo of I ES~ Annual 1 cumt Mark2 Porifolio lnCOme Yield $1,066,956 $1,107,497 98.0% $19,915 1.8% Equity Cash & Equivalents $7,264 $22,305 2.0% $45 0.2% $1,326 $1,309 __ __ __ Acaued Income Total $1,075,546 $1,131,112 100% $19,960 1 .a% Cash & Total Fund Performance -10 -20 -30 -40 I- b' ' Palm kh cardera CF S&P500 - I -26.2 I Qnm Cre Year ROCKWOOD CAPITAL ADVISORS PAGE 2 Market Value Summaw '71r 2nd Quarter Total Fund Return 2nd Quarter 2009 8.9% -- d lntwest / Dividends me Palm Beach Gardens General Employees' Pension Plan Market Value Changes 15,898 9,270 Total $ Change this quarter $55,566 Net Disbursemmb Net Realized & Unrealized (WL) 2nd Quarter Summary &jnning Market Babnce I $1,075,546 ~~ (122,901) (348,038) Fiscal Year Summary Beginning Market Balance (9/30/2008) I $1,576,883 IlWEi/DiVidends I 5,860 9,270 I Glmibutiora Net Ddxlrsements (47,94 1 ) Net Realized & Undid (0 88,377 Ending W Balance $1,131,112 I Ending Market Bah $1,131,112 I ROCKW WOOD CAPITAL ADVISORS PAGE 3 M(B)illions $$$ If you spmt 8 million dollars a day ... every singla day since Jesus was born,.. you still wouldn't have spent as much ... as Congress did in the Stimulus Bill. Now, let's quadruple that amount... and we'll have the cost of the Iraq War. ,ROCKWOOD CAPITAL ADVISORS PAGE 4 2ndQuarter2009 1 TIE "enlfiusiastic bull" that in Mad, continued its cimge for he beaer part dthe 2"d ~uarter, leading to rene~ed opimism hat the uwst may be aver forthe financial markeh- at leest form. Mile the &on remains with us, its seityseems to be lessening Wl, the c~~arter brcugh~ a "&&d si& d rdiep' that "the world is not mingto an end" as emerging markeh and mdi were the bigwinm. The S&P 500 Ida suFged 15.9% while the Dow lndusbial Average gained 12.0%. Hmme, foreign in-m in de\rdoped markeh and emerging markeh fared bas the hbgan Stanley EAR Idex ~23.8%. The markeh seem to haw moved past the pain and dibr;ded over the past few months. In- are 110 hgf d about the possibiliies da tutal bank failure, the ensuing c-ollapse dthe financial systgn and the "end dthe world." The likelihmd da d Great Depessnxl seglls to haw faded h inwstm' minds, aithcq+ we are I& with a rereision that is deeper and @than any post-World War II amtadcn. The marshe gownment and cffnal bank effm to wprt enxlomic mmwy and impmw lending condim appear to haw stabilized he fiMncial markeh and pwented the predptous decline hat my had feared. We have nee seen he level of international mqmatjcm on the mic fronl ~txi~~. Thisintervenbon ' has bU0)ned mmer and businers confidence - bdh key drivers within a capitalistic systgn. The equity mlly that bq+m Mad 9* seglls to be taking a break as inwstm attemp to align recent gains with mic qectaiions. Mile the mlly has been iqmsiw, a "time out" or short-term didation phase would be considered My for its Overall I@. A pllbadc will gk the bears an qpatunityto judytheir pasitim hthe market lgm its longer-term Lpbend. It is ther$ore reasoMbleto scpect a chopwenvinxlment in the interim as inwstm digest recent gaim. ROCKWOOD CAPITAL ADVISORS PAGE 5 2nd Quarter 2009 ThecKlmudm ' of your portfdio continus to mlve as the market transitions from bear to bull. sud.l Mons are often initially accompanied by dramatic pice reaoven'es within the most damaged areas, a "dash for mh" (i.e firtama/s and axrmodity-bad indusies sud~ as oil, &, and&$, ad ladd~der resuhs from d$ensive areas such as mmstap/esand seled /whim, which had a ~E@W impad on the pddio forthe quarter. During this first phase of momy, it is uitical to be disciplined by The Equky porddio continues to benefit h an ilweased allocation within the skngthming amsm dm'v and fed?+ sedws and from an cwn&&t in the /whim area. Also, a reduction in holdings within the d$ensiw amsum stap/es area has been a positive contributw. Mile the portfolio is wdy dl positioned, we will continue to monitor and make adjusbnents when wananted. In fact, the recent price wzakwss is likeiy to pmde a pkg list of by oprtunities in the m future. mdng to W'caI price b$lavior. Tw leadership will take longer to emerge. Performance 40 I -20 40 QTR Fiscal YID One Year Palm Beach Gardens GE 7 4.7 sap500 -7.4 -8.2 -18.8 -10.9 Two Years Three Years Inception ROCKWOOD CAPITAL ADVISORS PAGE 6 -- Equity Portfolio 2.Yum Brands Inc 3. Henly Schein IK. 4.Coca Cda Co. 5. Sip-Aldrich cap. 6. Medco Heab Solubons lnc 7. Hwelt Packard Co. 8. Nike lm. 9. Oracle Systernr Cocp. 1o.m sc& cap. ... t -. - -Tkd+ ~ 3.4% 3.4% 3.2% 3.2% 3.2% 3.1% 3.1% 3.0% 2.9% Portfolio SumW I 37 tdSb3da Top 10 Holdings 1. TJX Companies lnc New I 3.5% 15.0~ Style Box Large Cap - 46.2% Mid Cap - 37.8% small Cap - 7.7% Awwe Market Cap $39.9 billion Median Market Cap $1 5.3 billion 1 2nd Quarter 2009 Five Best Impact 1. Owens & Minor IK +33.0 % 2. Sip-Aldrich Corp. +31.4 % 3. Boston Scii Corp. R7.6 % 5. Ym Brands IIK. +22.0 % Five Wotst Impact 1. Burger King Hddingr IK. I -27.4 % 2. Celp cap. I -12.4 % 3.choice Hoteklnt'l 1 -7.4 % 4. @est Communications I -6.6 % -6.5 % I 5. Wal Matt stwes IK ROCKWOOD CAPITAL ADVISORS PAGE 7 Eauitv Analvsis and Attribution 35% 30% 25% 20% 15% 10% 5% 0% Stadar Discrefionan, 12.0% 40% 30% 20% 10% 0% -10% 17.7% 3.8% w 25.0% I Sector Allocation 0.0% 32* 15 5% 12.4% 1 Performance 10.1% 4.6% Industrial 18.0% 3.9% w 3.6% 1.9% - 0.0% Finance 3s 1% Discretionary Maletiab llf0 Teb Industrial T* 2nd Quarter 2009 Uti1 4.1% e -17.2% uti1 ROCKWOOD CAPITAL ADVISORS PACE 8 Sector Performance 100% 80% 60% 40% 20% 0% -20% -40% -60% -80% -1 00% Consumer staples oisc 18.4 n 23.4 A A A "Dash for Trash" (Previous Year vs. Current Rally) Health Care Materials lnfo Tech hdustrials 43.3 20.2 ff .46.6 -31 .O 41.9 37.4 ~ -54.1 Energy Finance 90.9 42.9 23.7 -47.3 Year Ended 3/8/09 Bull Ralb (3/9 - 6/30) 2nd quarter zu09 Utilities klt'l 44.5 d -39.7 -54.5 ROCKWOOD CAPITAL ADVISORS PAGE 9 j; 'P 1 -> -. -. - Equity Transactions Stock Mkt Cap Celgene Corp. Choice Hotels Int'l SCap - Growth LCap - Growth Hudson City Bancorp Inc. Burger King Holdings Inc. ~~~~~~~ ~ June Netgear Inc. SCap - Growth ~- Lowes Cos Inc 7 May A Sector Industry Desc Con Desc Con Desc Info. Tech Discount hotel, resort and cruise line company. Home improvement retailer with about 1,600 stores in 49 states and Canada. Leading supplier of networking gear for small ~~~ ~ ~ ... ....... ...... ~ ~~~~ Sold Lynch, lories Rw u --- 2nd ouarter Fiml 2009 Year-@Date $401 $ 988 2nd Quarter 2009 I Purchased Enlergy Corp. New Marsh 8 McLennan Cos. ________ .___ .. -~ ~~~~. . businesses and home users. ~ ..-. ~.~~ Telecom Info. Tech Offers cons. 8 corp. wireline and wireless . sewices. ~ primarily in ~ western U.S. ___. One of the worlds largest providers of online, LCap - Growth I I I I internet content and services ROCKWOOD CAPITAL ADVISORS PAGE 10 Exchanga Ticker ACV BAX Bsx CHH COST CVX HEW HNZ HW HSlC IBM JNJ KO KR urn LOW LSTR MCD MHS NHP NKE NTGR OM ORCL PEP PGR QCOM ROST SlAL WLS SRCL STJ TJX M WM a moo Crmplny N8mO CASH 8 EQUNALENTS ALBERTOCULVER CO. NEW BAXTrR INTL INC. BOSTON SCIENTIFIC CORP. CHOICE HOTELS INTL COSTCO WHOLESALE CORP. NEW CHEVRON CORP. HEWllTASSOCIATES INC. HJ HElNZ CO. HEWLElT PACKARD CO. HENRY SCHEIN INC. INl'L BUSINESS CORP. JOHNSON 8 JOHNSON COCA COLA CO. KROGER CO. LOCKHEED MARTIN CORP. LOWES COS INC LANDSTAR SYSTEM INC. MCWNALDS CORP. MEDCO HEALTH SOLUTIONS INC. NATIONWIDE HEALTH PROPERTIE NlKE INC. NETGEAR INC. OWENS 8 MINOR INC ORACLE SYSTEMS CORP. PEPSICO INC. PROGRESSNE CORP. QWESTCWUNICATIONS (IUALCokM INC. ROSS STORES INC. SIGMA-ALDRICH CORP. STAPLES INC. STERICYCLE INC. ST. JUDE MEDlCAL INC. TJX COMPANIES INC. NEW WAL MART STORES INC. YAHOO INC WM BRANDS INC. Pomdiw Total Markst Sham unltcort OriglnalCort PdO 22.305 I 1.00 I 22.305 I 1,210 600 3.260 920 690 400 1,WO 800 910 790 282 380 740 950 350 1.250 840 530 780 950 670 1.990 690 1.800 340 1.950 6.670 540 850 720 1.250 575 780 1.270 550 1.800 1.140 27.41 56.67 12.89 28.93 66.91 85.62 40.16 42.30 33.04 46.22 109.68 47.61 81.79 19.75 65.11 20.64 49.48 52.95 50.05 34.30 67.83 14.70 40.23 21.59 70.15 16.67 4.45 33.27 30.13 56.39 14.59 33.40 42.30 25.41 60.95 16.16 28.07 33.170 35.324 41,362 28.013 46.170 34.249 40.157 33.839 30.062 38.515 32.083 18,090 45,725 18.759 22,790 25.900 41,563 28.063 39,037 32.589 45,445 29,260 27.760 34.539 23,850 32,903 28,648 17,986 25.606 42,042 18,237 19.208 32.994 32,266 33,523 29.091 32.W2 $1.190.605 l.W 25.43 52.96 10.14 20.61 45.70 66.25 29.78 35.70 38.65 47.95 104.42 56.80 47.99 22.05 60.65 19.41 35.91 57.49 45.01 25.74 51.78 14.41 43.82 21.42 54.96 15.11 4.15 45.20 38.60 49.56 20.17 51.53 41.10 31.46 48.44 15.66 33.34 Total Market Value 22,305 30,770 31,932 33,056 24,651 31.533 26,500 29,780 28,896 35.244 37,881 30,491 21,564 35.816 20,948 28,228 24,263 30.164 30,470 35,576 24,453 34.660 28,676 30,236 34,272 18,888 29,465 27.881 24,408 32,810 35,683 25,316 29,630 32,058 39,954 26,642 28,188 36,oMI $1,131,112 X Mkt 2.0 2.7 2.8 2.9 2.2 2.8 2.3 2.8 2.6 3.1 3.4 2.7 1.9 3.2 1.9 2.5 2.2 2.7 2.7 3.2 2.2 3.1 2.5 2.7 3.0 1.7 2.6 2.5 2.2 2.9 3.2 2.2 2.6 2.8 3.5 2.4 2.5 3.4 100.0 - current neld 0.2 1.2 2.0 0.0 2.8 1.6 3.9 0.0 4.7 0.6 0.0 2.1 3.5 3.4 1.6 2.6 1.9 0.5 3.5 0.0 8.8 1.9 0.0 2.1 0.9 3.3 0.0 7.7 1.5 1.1 1.2 1.6 0.0 0.0 1.5 2.3 0.0 2.3 1.8 Annual Incoma 45 363 624 681 497 1.040 1.344 291 642 745 1.214 342 798 450 134 1.m 1.672 670 635 320 612 2.134 367 374 418 413 810 6W 866 $19.961 2nd Quartw 2009 IS ;Ga NIA 0.34 0.46 0.37 0.77 0.04 0.66 0.29 0.92 0.49 0.85 0.25 0.18 0.11 0.79 0.21 0.58 0.10 0.54 0.44 0.75 0.05 0.79 0.89 0.43 0.29 0.67 0.29 0.69 0.23 0.33 0.77 0.21 0.61 0.90 0.35 0.86 0.62 - LROCKWOOD CAPITAL ADVISORS PAGE 11 A AProxy Voting Record A Mgmt Vota Rec Cast .............. ~ ~ Celgere Cop. (CELG) 6117iZW9 Eied Diredon For FW For FW .. For ~ ~ ~ ~~ ~ ~~~~ ~~~ Amend Omnibus Stock Plan FW Ra!ily Audibn Require a MajwW for me Electlon d Directon Against Against ~ ~.. Chgvmn Capnbon (CW 400 5127iZW9 EledDiredon For FM Ra!ily Audbn For FW For FM Amend Exme Incentive Bonus Plan Amend Omnibus Stob; Plan For FW Amend AmWBylarmChaner - Call Speual Against Against ~ ~~ ~~~ ~ ~ .~ ............................. ~~~~ ~ . ~~ Copart Im (CPRT) 4/14iZW9 Appve Stob;-for-SalaryiBonus Plan For For Mgmt Vote Rec Cad Appmve Execmve lncenbve Bonus Plan For For Pmde for Cumulabve Vobng Against Against Revw ExeuNve Cmpensabon Against Against Advlw Vole to Ratlfy Named Execmve Omcen' Aminst Against Cornpensahon 840 413012009 EledDiredon Landstar Systwn. IIX: (LSTR) For For RabfVAudbn For For Amend OmnibuS Stock Plan For For Lockheed Mamn Cow (L4 350 4iZ123Ro09 EledDiredon For For Mify Audbn For For Reduce Supermapnly Vote Requirement For For Report on Spacebased Weapons PrOgram Adopt a Policy in which me Cmpany mll not Make or Promise to Make Any Death Benefd Paymenls to SenlW Exeamw Agcinst Against Agcinst Against ~~~ ~~~~~~ Adviroryvole to Raw Named Ex- Omerr' Against Against cOrnF-Tra!on Manh 8 McLennan Companies. Inc (kMC) 5I21iZ009 Eied Diredm For For Raw Audnon For For Against Against Reinmrporate in Anomer state from Delaware to NOM Dakota Against Against Amend ArbdesJB)narmCharter - Call Speual Report on Pdhl Conlnbuhons Against Against Wnw McDonald's Cop WD) 530 5i27iZ009 ElectDirectns FW For FW FW RawAuditon Amend~omnibus Stock Plan For Approve Aovlsorv Exewtive vote~toRafifv Incentive Named Bonus Exewtiw~omce~~~ Plan .... FW For Phase out Sales of Eggs horn Ballek Cage Hens for^ ~~ ~~~~~~~~~~ Againit ...Ag ainst kainst Against compensatlo?~~~~~~ ~ Medm Health Solutions, Inc. (MHS) For F" ~~ For ~~ FW 700 W112Om EledDiredon Ratity Mnon FM FW Approve Executive Incentive Bonus Plan Mer-Two International lne. (MTD) ROCKWOOD CAPITAL ADVISORS PAGE 12 Ygml vote Rec Cast Nafionvlde Heah Rwek. lm. i"P1 Ovlans & Mim, Inr. (OMI) 680 412412008 EledDiredors For For For For ... ~. .~ Raw AUdbrs .......... ......... For FN For FW For For r", r", 2nd Q~mter 2009 Mmt vote Rec Cast For For Omcen,~~~~ ~~ ~~~~~~~ 740 412212009 RaufyAudnon AdvisoryVotemRatiGNamed Exeamw @inst Against Require Independent Board Chairman Against Against Amend Bylam Establish a Board ComrniUee on ~ ~ Against Against Human Rihe~ Performance-Based Awards Against Against Compe!!WOn~ me mer co. (KR) 950 612512009 Elect Diredm For For For For Raay Audnors Increase Purchasing of Cage Free Eggs Against Against ~RGUire a t&jodyVote for the Eldon of Diredon Against Ag&t The Prcgreuive Corp. (PGR) 1,950 412412009 ElectDirecton For For Require Advance Notice fw Sharehddw Propials ~~~ F6r ~ ~ ~ For Amend Nmination Pdures for the Board For For RaayAud~~on~ ~ ~ ~~ For Foi 1.270 612nW9 ~~~~ Elect ~~~ ~ ~~~ Directon For For ~~ For For Amend~Oinnibus stock Plan Raufy Abditon For For 550 61512W9 Elect Diredm For FOt Raufy Audiiors For For Amend EEO Policy to Prohibit Di-rninatkon based Against Against on Sexual Okntation and Gender ldenliy Pay For Superiw Pedormance .&&n$ Against Advisory Vofe lo Ratify Named Exeamw ORicen' Against Against Compensation Report on Pcidcal Contibutbns Against Against Amend ArkiesJBvlMChaner - Call Soadal Aminst Aminst .. ....... ....... TJX Companies. lnr. (TJX) ~~ ~ WaCMart Stores, Inc. 0 ~~~ ~~~~~~~~~~~~~~~~~~~~~~~ ~ ~~~~ ~ ~ Meebngs Stock RetenbOnlHolding Pen& Agamst Against Web Fa~o and Company (WFC) ROCKWOOD CAPITAL ADVISORS PAGE 13 A Mgmt v* Rec Cast SharehMer vote Adnsmy Vde 10 Ram Named Oman' Against Against CWnQensabon Against Against 2nd Quarter 2009 ROCKWOOD CAPITAL ADVISORS PAGE 14 Proxy Footnote Capital Advisors. through our equity A 2nd Quarter 2009 ib-adviser, Contravisory Research 8 Management Co.. has retained Institutional Shareholder Services (‘ISS”) to coordinate and vote proxies with resped to client securities. Proxy voting is an important right of shareholders and reasonable care and diligence must be undertaken to ensure that such rights are properly and timely exercised When the Adviser has disuetion to vote the proxies of its dients. they will be voted by ISS in accordance with their Proxy Voting Guidelines in effect from time to time. The Adviser believes that having proxies voted by a professional proxy voting service which has the staff and resources to carefully evaluate voting issues is in the best interests of its clients and will remove the possibility of encountering conflicts of interest on the part of the Adviser with respect to the voting of proxies. The Compliance Officer has reviewed the most recent ISS Proxy Voting Guidelines and believes that having proxies voted in accordance with such guidelines is consistent with the best interests of the Advisets clients. The Chef Compliance Ofker has also determined that ISS, as a leading proxy voting firm, has the capacity and competency to adequately analyze proxy issues, The Compliance Ofker has also received information from ISS demonstrating to the satisfaction of the Compliance Officer that ISS has adopted procedures to ensure that it is independent with respect to its proxy voting decisions, including using “Chinese wall. and other procedures to segregate its proxy voting operations from its corporate servicing operations. ISS has agreed to notify the Adviser if it believes ISS faces a material conflict of interest with respect to voting the proxies of a particular issuer. me Compliance mcer will monitor ISS to ensure that all proxies are being properly voted by periodically engaging in ‘spot reviews” of votes made by ISS. The Compliance Officer will also have ISS confirm annually that it is maintaining appropriate records as set forth below. Client quatterly reports contain information with respect to each voted proxy about which the client portfolio held during the period, including (a) the name of the issuer, (b) the proposal voted upon, and (c) how ISS voted the dient’s proxy. Additionally, the Compliance Officer will maintain fiies relating to the Adviseis proxy voting procedures in an easily accessible place. Records will be maintained and presewed for five years from the end of the fiscal year during whi the last entry was made on a record. with records for the first two years k@ in the offices of the Adviser. Records of the following will be included in the files: Copies of this proxy voting policy and procedures, and any amendments thereto. A copy of each written client request for information on how ISS voted such client’s proxies, and a copy of any written response to any (written or oral) client request for information on how ISS voted its proxies. The Adviser has arranged with ISS to have ISS maintain and make available promptly upon request (i) copies of each proxy statement that is received for one of Adviseis dints, provided however that ISS and the Adviser may rely on obtaining a copy of proxy statements from the SEC‘s EDGAR system for those proxy statements that are so available. (ii) a record of each vote that ISS casts for one of Advisets clients and (iii) a copy of any document ISS created that was material to making a decision how to vote proxies, or that memorialies that decision. ROCKWOOD CAPITAL ADVISORS PAGE 15 .* . . , ., . . 9: .. . Rockwood Capital Advisors, LLC 721 Emerson Road, Suite 565 St. Louis, MO 63141 314-962-8336 toll-free 1-888-962-8336 .' '1 rockwoodcapital.com _. .. WWW.BOCDAHNGROUP.COM City of Palm Beach Gardens General Employees Retirement System I 1;: 2nd Quarter 2009 Investment Market Summary ----XI----- _- - -. - I - Second Quarter 2009 DlalDcaUon NaUon The equity market advanced for most of the quarter; however. as June came to a dose investors were reminded that volatility is alive and well. While the market experienced more than a 40% recovety off its March lows, it would be a naive assumption to expect another 40% positive spike without the market taking a breather. Much of the dislocated valuations that caused the market to bounce rapidly off its low are also at the core of the recent equity market pullback. It is logical for investors to take an inventory of risks as the prospect for near-ten earnings and economic growth is weak. Although the market's decline at the end of quarter may have caused recent talk of 'green shoots" to wither on the vine, a variety of data points indicate that the broader economy has at least slowed its pace of dedine. Sometimes we just have to consider less negative to be a positive. The second quarter of 2009 posted some of the strongest equity performance numbers in years and represented a welcome relief after more than a year of negative results. The market rally, which began in mid-March. continued unabated for most of the quarter despite rising unemployment and disappointing economic statisitcs. The broad market Russell 3000 Index posted a return of 16.8% for the quarter. While all ten economic sectors of the Russell 3000 Index posted positive returns for the quarter, performance was pariiwlarly strong in materials, industrials. consumer disaetionary, finandals and information techndogy sectors, each of which posted returns in excess of the broad index. While the index's other five sectors finished behind the 16.8% return of the Russell 3000 index, only telecommunications Services (4.2%) returned less than 10% for the quarter. In the large cap space. the S8P 500 and Russell 1000 Index posted returns of 15.9% and 16.5% respectively. Further down the capitalization spectrum, the Russell MidCap Index returned 20.8% for the quarter and the small cap Russell 2000 Index returned a similar 20.7%. Due to the broad-based sector strength in the various indices particularly in finandals, value style benchmarks outpaced growth benchmarks by a narrow margin (4%) in all but the small capitalization space. The broad market Russell 3000 Value and Grovvth indices both returned 16.8%. Large cap issues, as measured by Russell 1000 style benchmarks, returned 16.7% for value vs. 16.3% for growth. The Russell MidCap Value Index returned 20.9% vs. 20.7% for the Russell MidCap Growth Index. Unlike the larger capitalization ranges, growth investments (23.4%) outpaced value investments (18.0%) by 5.4% for the quarter within the Russell 2000 style indices. This outperformance by growth in small cap was primarily due to pwformance in the growthoriented infonation technology sector (30.3%) vs. the value-oriented finandals sector + (9.9%). + Equity market strength was not isolated to domestic markets during the quarter as both developed and emerging international markets advanced. Un-hedged international holdings got an additional boost from U.S. dollar weakness, which was widespread during the second quarter. The developed markets as measured by the MSCI-EAFE Index, increased in both US. dollars (25.8%) and local currency (17.3%). Within the 21 country index, each country posted positive results. performance Whin the index was led by Spain, Sweden, Hong Kong and Singapwe, each of which returned more than 35% for the quarter in U.S. dollars. Unlike the narrow perfmance bands of most of the domestic style indices, the international style distribution was broader with the MSCCEAFE Value Index returning 30.3% vs. the MSCI- EAFE Growth Index return of 21.7%. Emerging markets posted strongest equity index performance for the second quarter in a row Mth the MSCI-EM index returning 34.8% in U.S. ddlars and 24.6% in local currency. Much like the developed index, each of the 22 countries represented by the emerging markets index posted positive performance for the quarter. + The 'risk' trade returned to the bond market with a vengeance during the second quarter as investors sought the yield advantage of corporate obligations. As spreads continued to narrow during the quarter, lower quality debt got the largest boost with the Merrill Lynch High Yield Master II index posting an "equity-like" return of 23.2%. Despite the Fed's best efforts to keep interest rates low to fuel its numerous recovery programs and foster attractive mortgage rates the yield curve steepened measurably during the quarter for maturities beyond one year. Although the Barclays Capital U.S. Aggregate Index returned a seemingly mild 1.8% for the quarter, things were not as smooth in the government, mortgage and credit sectors that make up the broad index. The Bardays Government Index posted its second straight quarterly loss Mth a return if -2.2%. The mortgage sector was not much stronger but did manage to post a positive return of 0.7%. The narrowing credit spreads previously mentioned also benefited higher-quality corpwate issues with the Bardays Corporate Investment Grade Index posting a strong return of 10.4% for quarter. When market dislocation causes investment "pillars" like strategic asset allocation and prudent manager selection to break down. it can be harmful to investor expectations. The loss of long-term focus can resuit in short-term decision making and timing-based portfolio positioning. Unfortunately, such a limited view toward achieving a long-term term set of objectives can further exacerbate the frustration and uncertainty associated with adverse market conditions. It is important to remember that the longterm nature of institutional investors is the "foundation" of what allow5 them to take advantage of the structural and emotional conditions that negatively affect investors with shorter time hwizons. While we may be in a period of severe market dislocation, the death of diversification and strategic asset allocation as effective tools toward achieving long-term objectives is greatly exaggerated. + ? THE qJ BOGDAHN GROUP The Market Environment Major Market Index Performance Period Ended: June 30, 2009 MSCl EAFE MSU EIM~. Mus. sw 5w Russell 3000 Ruraell io00 RusaellMidCap Ruasell2000 Barclays USAgg. mnlays US Gw. BarclayaMBSFlxed EarclayaCorplG 3moa. Tail1 I Quarter Performance p 1Q.IY 10.4% 1 MSCl EAFE MSU Emers MMa. sw Mo Rusaell3WO RuselliCQO Russell MidCap Russell 2000 Barclaya USAgg. Barclays US Ow. Earclaya MBSFlxsd Barclaya CUP IG 3mw. T-BII -70.0% 0.0% 10.0% 20.0% 30.0% 40.0% Five Year Annuallzed Performance S.Q% -5.0% 0.0% 5.0% 10.0% 15.0% - 20.0% MSCl EAFE MSCl Emerg. Mkts. SW Mo RusaeII MW Russell 1000 Russell MidCap Russell 2WO Barclaya US Agg. Barclays USGov. Barclays MBS Fixed BarchyaCorplG 3mm. T-Bill One Year Performance MSCIEAFE MSU Emerg. MMs. sap 500 Russell Moo Russell 4OW Russell 2WO Barclays US Am. Barclaya US Gw. Barclaya MBS Fixed BarclaysCuplG 3moa.T-BLII RuawII MidCap Source: MSCl Capital Matkefs. Russd Investments. Barclays Capiial& Bcgdahn ConsuMng, LLC. 3 2 O.S% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% lTen Year Annualized Performme I.(% 94% p:% 3.1% -5.0% 0.0% 5.0% 10.0% 15.0% <> T Ma BOGDAHN GROW The Market Environment Long-Term Major Market Index Performance Period Ended: June 30,2009 MSCl EWE MSClEMrg.MMI. w 500 Ruueli3wO Ruueli to00 Ruaaell MidCap Ruuell Zoo0 Barclays USAgg. 1 FHtccn Year Annualized Performance I U% NIA I 10s 10.8% 1o.n 1D.1% I a.6~ MSCl EAFE U% 6 6% I MSCl Ewg Mkla. 3mos.T-Bill B.rchyaUSAgg. Barclaya USGov. Barclays MBS Fixed Bardaya Cowl0 t.S% 1 I 6.9% i 0.0% 2.0% 4.0% 8.0% 8.0% I Twenly-FIw Year Annuallzed Performance MSCl EAFE -- MXI Emerg. Mkta. WA , ShP 500 R~l~113wO R-ll 1000 Ruuell M1dC.p I RwSdIZWO SAY. Barely. USA=. 8.6% , B8rclysUSGw. Barclays MBS Flxsd BarclayaCorplG I ..... 10.0% MSCI EAFE MSCl Emerg Mktr ShP 500 RuaselifWO RutreIIIWO Russell Mimp RuueIIZwO ITwnty Year Annualized Performanu, 71 Barclap USAgg - 734 B8rclsyaUS Gov. Barclays MBS Fixed BarclynCwplG 3mm. T-BiII *i% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Source: MSCI Capital Markets. RusseU Investments, Barclays Capita, 8 sopdahn ConsuRing, LLC. 4 3 10.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% IThlrty Year Annualired Performance I J Barclaya Corp IG I _. 12.1% - 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% ? <& BOGDAHN GROUP The Market Environment Russell Style Index Performance Period Ended: June 30,2009 IQuarter Performance I 3000 Value Moo Index 3000Growth 1 I -L IWolndeX 1000Grcmih 1 I Y 63% i.l% I 20.7% I m'8y Mimplndex MidCap Growth 1 2WOValw 1a.m 2000 Index 2000 Growth 23.4% I I ~~ 3OWValue 3000 Index 3WOGrcmih 1000Value 1000 Index 1WOGrowth Midcapvalue MidCaplndax MIdCapGrcmih rnwvaiw Mw Index 2WOGrowth 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% I Five Year Annualized Performance I a% -2.5% -2.0% -1.5% -1.0% -0.5% 0.0% Source: Russel hveslments lone Year Performance I 3000 Value 3WO Index 3000Growth low Value low Index 1000Growth MidCapValue MidCaplndex MidCapGrcmih 2000 Value 2000 Index MDOGrowlh .&e% -246% J0.5,~ 40.4% 40.1% 26.0% 3OCQValw 3000 Index 3000Grcmih 1000 Value 1WOlnder 1000 Growth MidCapValw MidCaplndex MidCap Growth ZOWValue 2000 Index 2000 Grcmih -35.0% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% lTen Year Annualized Performance 02% . 4.8% 4.7% 4.0% (1 24% 4.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 7 THE <> BOGDAHN GROUP The Market Environment Quarter & I-Year GlCS Sector Performance & (Quarter-End Sector Weight) Period Ended: June 30,2009 Emrgy(11.3X) rnl-Yrn Materials (3.8%) Industrials (10.4%) Consumer Disc (9.9%) Comumer Staples(10.6'4 Health Care (13.8%) Financiais (14.2%) InfoTechnology (18.5%) Tdecom Sewices (3.2%) utilities (4.3%) 29.0Z Materials (6.1%) Industrials (12.9%) Consumer Disc (14.8%) Consumer Staples (7.2%) Health Care (9.3%) Firuncials (17.8%) InfoTechndogy (14.4%) Telecom Services (1.9%) Vtilitier(8.2%) -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% Source: ThornDson Financial Energy(ll.8%) Materials (3.8%) Industrials (1O.WA) Consumer Disc (9.7%) Consumer Staples (11.2%) Healthcare (13.7%) Financiais (13.7%) InfoTechndogy (18.4%) TelecomServices (3.4%) Dl-Year utilitiss(4.3%) Materials (3.8%) lndustrlals (16.0%) Consumer Disc (12.9%) Conaumer Staples (3.5%) Healthcare (15.1%) Financiais (19.5%) Info Technology (19.7%) Telecom Services (1.3%) Utilities (3.6%) -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 40.0% -60.0% 40.0% -20.0% 0.0% 20.0% 40.0% 7 THE qJ BOGDAHN GROUP The Market Environment Quality Rankings* Breakdown by Weight and Quarterly Performance for Various Indices Period Ended: June 30,2009 .. A A- R+ A+ 14.7% 8.8% A 10.1% 13.9% A. I 10.0% I 14.9% I I 10.6% 14.0% 10.4% 15.0% 26.8% 16.4% ~ E+ 25.7% 16.4% E 17.9% 18.6% I I E I 6.7% I 23.7% - C 2.6% 24.9% D 0.0% 95.7% Not Rated 12.2% 24.3% n noL ssd MidCap Ruality Ranking Average Weight RTR Return I - E 17.8% 18.9% R- 5.6% 22.9% I I C 2.1% 22.7% I 0 0.0% 0.0% Nnt Rabd 10.9% I 24.7% I 7 THE qJ BOGDAHN GROUP 1 The Market Environment Domestic Credit Sector & Broad Market Maturity Performance & Rate Comparison Period Ended: June 30,2009 AM M A BBB <EBB Govt Mwt 1-3yrGlWC 1-5yr GlWC IlOyrGlMtC lDtyrGlWC I Quarter Performance r 1.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% I ZOO9 Market Rat- 7.00 ' ~FedFundsRaIe -TEDSpread - 3MonMLlbor I , -WlOySpread -1OyiTreasury ---1OyrTIPs 5.00 .-- -* t.'.,. 1.00 0.00 MA AA A BBB <EBB Govt MOR 1JyrGIMIC 1SyrGIMIC 1-lOyr GlMlC 10+yrWMIC One Year Performance1 -3.5% 67% 9.3% -6.0% -3.0% 0.0% 3.0% 6.0% 9.0% iz.r-' 1 Treasury Yield Curve 6.W 5.00 4.00 3.00 2.00 1.00 0.00 [ -1213112W7 +?%i12008 &3131~/209 0 613012009 4 Y d /' Jaw09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 lmo 3mo 6mo lyr 2yr 3yr 5yr 7yr 10yr 20yr 30yr Source Memn Lynch , MoftgageX com , US Department of Treasuiy & St LOUN Fed 7 THE <> BOGDAHN GROUP Page Intentionally Left Blank City of Palm Beach Gardens General Employees' Retirement System 7 tal Fund Compliance: Compliance Checklist as of June 30,2009 1. , v_I , lV.l ylll ,,,sled or exceeded the 8% actuarial earnings assumption over the trailing three and five year periods. J 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. 4. 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 1. Total equity returns meet or exceed the benchmark over the trailing three and five year periods. 2. Total equity returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. 3. The total equity allocation was less than 75% of the total plan assets at market. 4. 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. J J J ted Income Comdiance: 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 I. Manager outperformed the index over the trailing three year periods. JJ inager Compliance: Int'lETFs ISmgraSS I (:rkNZI* IYes NO WA Ye8 No NIA Yes No WA 2. Manager ranked within the top 50th percentile over trailing three year periods. J JJ 3. Less than four consecutive quarters of under performance relative to the benchmark. J J J 4. Three-year down-market capture ratio less than the index. J J 5. Standard deviation c= 150% of the index over the trailing three year periods. J J 10 1 THE qJ BOGDAHN GROUP Total Fund Composite June 30,2009 I : March31,2009 : $1,893,670 June30,2009 : $1,960,882 I n . s ;. ..Y , .. kc -. .:* .. , ., -.. L A A Segments Market Value 6) Equity 1,066,941 International Equity 70,057 Fixed Income 722,137 Cash Equivalent 34,535 Allocation 56.3 3.7 38.1 1.8 (Oh) Segments Market Value (S) Equity I, 107.624 International Equity 88,380 H Fixed Income 709,108 Cash Equivalent 55,770 Allocation (XI 56.5 4.5 36.2 2.8 ?THE qJ BOGDAHN GROUP Total Fund Composite June 30,2009 I March31,2009 : $1,893,670 June 30,2009 : $1,960,882 A 1 A A Market Value Allocation Market Value Allocation 6) (Oh) ($) W Rockwood Equity Portfolio l,075,53 I 56.8 W Rockwood Equity Portfolio 1,131,239 57.7 W International ETFs 78,556 4.1 W International ETFs 98.170 5.0 W Receipt &Disbursement Account 642 W Receipt & Disbursement Account 1,730 0. I W Sawgrass Fixed 738,941 39.0 W Sawgrass Fixed 729,743 37.2 ? THE /C-l BOGDAHN GROUP Palm Beach Gardens General Employees' Comoarative Performance Trailing Returns As of June 30,2009 Total Fund Policy Difference All Public Plans-Total Fund Median -1 Fmd (Gross) Rockwood Equity Portfolio S&P 500 Difference US CoreLarge Cap Equity (SA+CF) Median International ETFs MSCI EAFE Index Difference International Equity All (SA+CF) Median Total Fixed Composite 'Total Fixed Policy Difference US Broad Market Core Fixed Income (SA+CF) Median Sawgrass Fixed Sawgrass Fixed Policy Difference ~~ 10.59 -8.88 -15.78 7.05 -10.64 -19.66 12.0~ -1 1.39 -172X -5.03 0.75 -2.38 18.03 -20.19 -30.42 16.61 -19.02 -26.52 -6.58 -1.17 -3.90 8.93 (97) -20.95 (84) -30.65 (91) 15.93 (40) -19.47 (62) -26.21 (53) -7.00 -1.48 4.44 15.43 -19.05 -26.08 25.01 (49) -10.12 (36) -28.11 (37) 25.85 (43) -13.16 (58) -30.96 (56) 6.84 3.04 2.85 24.83 -12.24 -30.48 2.40 (71) 11.65 (4) 8.17 (21) 1.78 (851 6.57 (71) 6.05 (55) 0.62 5.08 2.12 3.54 7.83 6.44 2.40 (71) 11.65 (4) 8.17 (21) 1.78 (85) 6.57 (711 6.05 (55) 0.62 5.08 2.12 .. -3.66 (833 0.31 -2.24 -2.76 -.i.66 0.90 -7.15 423 1.08 -7.43 (44) -8.22 (66) 0.79 -7.82 N/A -7.51 (67) N/A -6.33 6.83 (39) 6.43 (521 0.40 6.45 6.83 (39) (1.43 1521 0.40 .. -1.6.3 (92) 0.42 0.30 -0.60 -1.63 I .03 -3.31 -4.28 0.97 NIA -4.27 (71) NIA -3.57 NIA 0.13 (68) N/A 1.15 5.22 (25) 4.49 (573 0.73 4.66 NIA NiA NIA .. 0.00 I941 0.17 1.74 0.82 0.82 o on -1.38 -2.24 0.86 NIA -2.24 1x63 N/A -1.18 NIA N/A 3.83 2.79 1701 5.47 (28) 5.04 (55) 5.13 NIA N!A NIA 0.43 h 72 KIA -0.76 NIA 6.66 iomi~iw 6.72 -0.06 6.65 IO~III!~ -0.05 0.711 -3.67 N/A ll1011201 -5.13 Nl.4 1.46 NIA -5.57 NIA 11/01/20( -11.03 N!A 5.46 N/A 6.63 NIA lOAU/l9! 6.71 N14 -0.08 N/A 5.93 NIA 11/01/201 5.44 N14 0.49 ~~~ US Broad Market Core Fixed Income (SA+CF) Median 3.54 7.83 6.44 6.45 4.66 5.13 NIA Returns for periods greater than OM year are annualized. Rems are expresxd 8s percentages. Total Fund Policy = 65% S&P 500.5% MSCI EAFE. & 30% LB Aggregate 13 GROUP Palm Beach Gardens General Employees' Lomparative Performance Fiscal Year End Returns As of June 30,2009 Ort-2007 Ort-2Ul.. . . . . - .. .. . (. . . - .. .. . OCtl0OZ Ort-2001 'Is 'I,, .Io .I,, 'le 'lo To s~p-2011x s~p-zut17 sep-ziioo s~p-211115 s~p-zt~ti~ scp-2003 sen-2002 Total Fumd (Net) -15.57 (80) 15.50 (30) 7.79 187) 8.15 198) 9.26 190) I 10.57 197) -7.06 (57 ., Total Fund Pnliq Difference All Public Plans-Total Fund Median Total Fnad (Gross) .Total Fund Paliq Difference Total Equity Composite Total Eqoit! Pnlic! Difference Rockwood Equity Portfolio sal' 5011 Difference US CoreiLarge Cap Equity (SA+CF) Median lnlernationrl ETFs MSCT EAIT I"d*\ Difference International Equity All (Sh+CF) Median Total Fixed Composite Firctl lnfnl Polic! Difference US Broad Market Core Fixed Income (SA+CF) Median Sawgrass Fixed Swgrass lixud Polic: Difference ., -14.43 (661 -1.14 -13.25 -14.90 -14.43 -0.47 -21.25 -22.5') 1.34 -20.82 (46) -2I.W ih.31 1.16 -21.38 -26.68 (26) -311.13 1521 3.45 -29.92 .. 1?..3') iX1l 3.11 14.37 16.15 I 2 .: 4 3.76 21.95 I6 hX 5.21 21.35 (11) lb44 (5x1 4.91 1664 NIA 25 iX (59) NIA 26.34 ., 794 1x61 -0.15 9.59 8.41 7 94 0.47 10.14 -0.65 10.79 14.19 (4) 111.79 (5(I) 4.00 10.78 NIA I9.05 (50) NIA 19.62 ., x.40 (97) -0.25 14.15 8.96 X.4(1 0.56 12.89 I225 0.64 KIA 1225 IXII NIA 14.37 NIA ?h1? 15x1 NIA 27.21 .. '1.07 1x71 -0.41 12.67 10.09 '1.h7 0.42 14.12 1.: x7 0.25 N/,\ 1.<.87 li9I NIA 14.27 NIA 252 1511 N/A 22.62 ., 17.3h (?VI 4.79 18.22 11.40 17.31, -5.96 15.96 24 411 -8 44 NIA ?-1K 1-14) NIA 24.10 N/A ?h 54 15:) NIA 27.09 0.64 (69) l.65 1.31,) -3.01 2.58 0.64 (69) 2.hC l.7hl -3.01 4.92 (78) 5.14 (5.31 -0.22 5.16 4.92 (78) 5.14 (53) -0.22 4.77 (4) 367 1741 1.10 3.86 4.78 (4) N:2 NIA 2.66 (88) 250 101) 0.10 3.10 YIA N A NIA 2.85 (9s) 1. > .c 1x11 -0 50 3 78 NIA u\ NIA 5.33 (69) h.?l 1261 -1.18 5.79 NIA N A NIA -~l.l4 1x1 2.08 -6.44 -634 -0. I 4 2.80 -15.09 -21).40 5.40 XIA -X40 (76 NIA -19.04 NIA NIA -11.53 -IS.?(> 175 7.76 (71 WII (27 -1.44 8.56 NIA \,:I NIA IUS Broad Market Core Fixed Income (SA+CF) Median 2.58 5.16 3.86 3.10 3.78 5.79 8.56 Rehlms for periods greater than one year are annualized. Rms are expressed as percentages Total Fund Policy = 65% S&P 500.5% MSCl EAFE. & 30% LB Aggregate P 5350 0 41 on 30 00 s3oon IS .on 2 - o~on I=-- oIc2ooa a) ' 7.05 (88) -10.64 (75) lisy 12.08 (30) -11.39 (86) Median 10.19 -8.88 . a- I 1 2 3 4 S Ye.. Yam YUls Y"" YI..S -17.28 (67) -1190 (74) -3.66 (83) -1.63 (94) 000 (95) -19.66 (86) -10.88 (61) -2.76 (64) 460 (79) 0.82 (81) 1250 0 1200 n SISOO SlOrJO ssn n - I 9/97 9/00 9/03 9/06 6/09 I79 -Total Fund (her) -Told Fund Pollnl .I577 -1024 -2 20 0 35 I I I 1 1 Qua-. ENdhz De2007 I Qu.r*r E.dbL M.r.2w) QluW, Qu."C. Q"..*. Qll."er D.r-ZOCL8 *Iw(I lunlW8 M.r-2008 12.43 (54) -10.10 (W) 2.49 (I) 4.61 (961 -1.04 (72) Endinb Ed9 Ending Ending 411 (25) -7.73 (92) -14.32 (77) 4.61 (33) -2.07 (96) 442 (66) -1.03 (71) T.l.1 Fd (Net) Total Fund Polis). -12.41 -7.56 4 14 -5 04 Q.71 PIms-To~l Fund Median -5.68 ?- <> BOGDAHN GROUP Palm Beach Gardens General Employees' Total Fund (Net) June 30,2009 1 E 2500 - Y a - so00 v E 2 75 00 g 10000 9104 9/05 9/06 9/07 9/08 6109 -20.0 -12.0 -4.0 40 I20 20 0 Tala1 Perid 523 isrnrdi. Medh-75 7593 CO"., Cavnl Coml C0llo.t 20 n (0%) 2 (10%) 13 (65%) 5 (25%) Total Fund Policy(%) Total Fund (N4 20 0 (0% o in*&) 7 (35%) I3 (65%) ~UnderPmbbnnsnm *OvarPerbwnrc -4-Scp-2004 + lun-2009 Total Fund Policy rqnn I I 1000 .iii-;, , , - 5 E a moo - -45.00 40.04 0 00 1500 30.00 45.00 Risk(Sl.md.rd Matian %I Renm Slamdard Ik*iatiom Total Fund (Na) -2.16 12.31 -Median -2.20 12.02 Total Fund Policy -3 66 13.50 0.00 I000 20 00 3000 40 00 so 00 60.00 Rirk(Wndird &sfion Ye) RuIlrn S1,nd.d Dwimlion W Tocsl Fund iNn) 0 82 10 20 Told Fund Polxy OW 10 89 - Median 1.79 10.06 hW".id. Risk BCl. DOWD Shsrpr R.60 T...kiag \Is.ket Msrket Alpha IR UP Elm. C.DN.C C.PlU,* 0 35 0.15 4.42 n 85 1050 5.02 91 79 88 83 1123 Totll Fund (Nn) 10000 OW N:A 4 44 I 00 Total Fund Policy 0 00 100.00 Fa60 rn.rke1 Alpha Error 93.11 0 82 0 18 -0 17 0.87 8.34 lW.OO 0.00 -0 22 I 00 8.82 Total Fund (Net1 4.04 99.02 Total Fund Policy 0.00 lO0.W 16 7 ME BOGDAHN GROUP Palm Beach Gardens General Employees' Total Domestic Equity June 30,2009 Market Value As of 6I30i2WP C.pill Apprtd Deprer. Contributions Distributions Fea EXQWtS I"CC.me Net T.*,l,fC" MirbtVahw A3 of 3i3ll2009 Tom1 Domestic Equity 1,016 -38 5 89 1.131 I , 14000 2 -1500 a' -30 00 a sinno -4s 00 I I OCt-2008 1 2 3 4 3 Quart-. TO >em YtSr- \can Y*S.. Year, 1-2009 Total Domwt~Equity 893 (97) -2095 184) -3065 (91) -1891 (42) -743 (44) -3 52 (50) .I 56 (61) SBP 500 IS93 (40) -1947 162) -2621 (53) -1993 (46) -822 (66) -427 (Ill .224 (86) 10 0 -Told Doirestir Equtly -SAP 500 Median 1543 -19.01 -24 n8 -1924 .l 82 -3.57 .I I8 I 1 I I I I Ending Ending Ending Ending Ending Eading Q...,W Qll..tCr Qusrer Q"8.t-r Q"U,C. Qvmrkr Mar-2009 Drc2WS scp2w8 JO".Z008 M.r.2WS Del007 Ton1 Domestic Eqmily -1.12 (IS) -21.117 (55) -1217 (84) 4.31 (S) -11.10 (85) 1.66 (45) SBP Sml -11 ni (68) .2l.94 (58) -8 31 (39) -2 73 (82) -944 (48) -3 33 (67) L'S Cordargr Cap Equity (SAICF) Median -1049 -21 14 -9 on -1.29 -9 47 -2 81 7 THE /cJ BOGDAHN GROUP Palm Beach Gardens General Employees' Total Domestic Equity June 30,2009 300 0 00 I nvs I 9104 9,OS 9/06 9 07 9108 6109 Told Pad F25 tSMd,." Md,.W715 7F95 camof count comnt COUnt TMal Danoslic Equty 20 2 (10%) 1 (35.61 3 (15.01 8 (40%) SBP sw 20 0 (0-0) 0 (00.) 13 (6%) 7 (35%) 5.00 I 0.00 - : -1o.on E -15.w --5'onLI - - -25.00 -20.00 1.00 10.00 im -2 20 on 25.00 3000 35 00 Riak(St.ndardk*i.tiom %I RHllrn Stlndlrd Ikri.h -7.43 -8 22 -7 82 18 32 I9 35 19 28 15.38 16.04 16.01 DCWlulde Risk TNal DmcNc EqWy 7 92 89 20 89 24 -0 19 0 09 4 50 0 86 I6 43 SBP 500 0 00 100 00 100 00 OW "A 451 IW 16 I3 Bet, Sharp R."O UP D-" Msrkd Ilsrktl Alpha IR C.WU.C C.PtU.* TnCki"g E-. Dowaside ah k" Sh.rpc I!p DOW" Market Mark1 Alphs 1R c.phlr* C.PIUrr m(i0 7r.cki.g Error Tml Domcstic E+#ul* 6.17 M.40 89.90 0.51 0 10 -0 22 0.89 12 80 SBP500 0.00 IOOW lW00 0.00 nt.4 -0 25 1.00 12 58 1 THE <> BOGDAHN GROUP Palm Beach Gardens General Employees' Rockwood Equity Portfolio June 30,2009 Markt Vnlm As of 6~onw Rwkwmd Equity Patfolio 1.076 -3a 5 89 1,131 c.pit.1 Appmd Ikpm. COntrihutioU Distriboliaas Fls Elpnwc lllCem* Net Transfen Markt Vhs As of 31~1nw9 3000 1145.01 -30.00 45.00 Qll.*. Rakwood Equity Portfolio 8.93 (911 0 SBPSW 15.93 (40) Mcdin I5 43 -20.95 (84) -30.65 (91) -18.91 (42) -7.43 (44) NIA NIA -19.47 (62) -26.21 (13) -19.93 (66) -8.22 (66) 4.21 (71) -2.24 (86) -19.05 -2608 -1934 -1 82 -3 57 -1 18 11300- III50- 11000- 81 1 194 $85 0 110 0 - I550 , 12105 9106 6107 3i08 I2iO8 6/09 -Roekroad Equity Parl%llo - SBP 500 I I I I I I EdW Ending Edhg endog Edmg Eadbg Q"."*. Q..*r QU.rttr pu.rtrr Q...*. *.*r M.F2W) %IO06 StPZwII J.U-2008 M.F2008 DU-zw7 hhwd EI"Uy parnola -7.11 113) -11.87 (SS) .lZ.Z? (84) 4.31 IS) -11.10 1.95) -1.66 (4) SBP J00 -11 01 (68) -21 94 (58) 637 (39) -2 73 (82) -944 (48) -333 (67) US CoreiLargc Cw Eqwty (SAtCF) Mcdm -1049 -21 14 -9 00 -1 29 -9 47 -2 87 7 ME CJ BOGDAHN GROUP Palm Beach Gardens General Employees' Rockwood Equity Portfolio June 30,2009 d.0 0.00 c 2500 OUS .. 0 .: - - g -7.0- b e 7500 $ -10.0- e 5 -130- - s y' Undcr d z B 50.00 - - P A lW00 9104 9105 9/06 9'07 9/08 6!09 PUbmSnCC B -16.0 2 -13.0 -10.0 -7.0 -40 TatalPemd s7.5 ZFMddim Mrdian-lS 7sw Rorkxd Equie Portfolio 3 1 03%) 2 (67%.) 0 10%) 0 (0%) +lun-2009 S&P 500 20 0 (0.d 0 ID.) 13 (65%) 7 (35X) -I60 Count CO"", C0""f CO"", s&Psoo(%) ..-UndrrPeISomnsc +OvnPcrbmnce -A-Dec-2008 -;.:c , -7 I , , , , IT^ i 1 Y q -10.00 e -15.00 2 -20.00 : 3 -5.00 -10.00 30 00 -25.00 25.00 3000 35.00 5 00 10.00 15.00 20 00 25.00 5.00 IO 00 15.00 20.00 Risk(SUndnrdD"i*llom %) Ri d.lionX) St.od.rd D-i.lion . ..... .. St.nd.rd D-tion lwun -7.43 18.32 Rockrood Eqmty Pmfolio li:A NIA -8.22 19.35 0 S&P 500 -2 24 16.04 -7.82 19.28 -Median -1 18 16.03 R~woodEquity Potlfolb SBP 500 - Mcdim Danslde Ri.k 88 44 89 05 a 37 0 09 a 54 0 85 1509 0 00 10000 100 00 OW YA -0 53 I 00 I581 Market M..lrrl Alpha IR =.rpr Beta Doxa bIi0 UP T..<ki.g Error C.Phl.C C.Ptu.* Rockwood Equity Ponfolio 7 14 S&P sw DOWIldC Risk NIA NIA NIA NIA NIA NIA NIA NiA 0.00 100.00 1W.W 0.00 NIA 4 27 1.00 12.53 Beta Sbarpr Ratio Down M.&t Market Alpha 1R C.PlUC C..hlu.C UP TlSCkiUg Ena. Rocbd Equty POmollo S&P 500 20 T ME <> BOGDAHN GROUP Palm Beach Gardens General Employees' International ETFs June 30,2009 51151 II 60.00 I OU-loo6 1 2 3 4 5 Q"*r,e. TO Yea. Yeln Yam Y".S YUn SuunlW9 NIA NIA NIA 0.13 (68) 2.79 (70) Median 24 83 -12.24 -30 48 -2021 4 33 I IS 3 83 IntonallonnlETFs 25.01 (49) -10.12 (36) .28 11 137) -1565 (13) MSClEAFEIndex 25.85 (43) -13.16 (58) -3096 156) -21 24 (61) -7.51 (67) 11300- ! u!nti 6/07 12/07 6/08 12:08 6/09 -1nterna4ional ETTr - MSCl EAFE Index 1 I I I I I Q...I=C Qu.ner Quark. Qu.ner Quarter Qn..mttr Ending Ending Ending Ending Ending Ending Marl009 LkC.1008 SCFlWS l".-1008 M*,-2WS b1W7 Immnatiad ETFI 4.94 (19) 31.04 (56) -20.01 (41) 0.49 (2.1) 4.m (19) -1.S7 (65) MSCI EAFE Index -13 85 (73) -19.90 144) -20.50 (45) -I 93 (57) -8 82 (57) .I 71 (14) IntmanomI Equity All (SA-CF) Meman -1199 -20 31 -20 97 -1.56 -8 13 .I 51 T ME /c-l BOGDAHN GROUP Page Intentionally Left Blank 22 Palm Beach Gardens General Employees' Total Fixed Composite June 30,2009 s300 1 lJ.00 10.00- 12JO.O- s200.0- L 51500 1 On.2W8 I 2 3 4 5 *ne. TO Ye.. Ye*" Yes" Yean YCa" Jrm-Zw) Twl Fix4 Cnnpaitc 2.40 (71) I1 65 (4) 8.17 (21) 7.41 (34) 6.83 (39) J.2 (25) 547 (28) Fkd Total Policy 1.78 (85) 657 (71) 6.05 (55) 6.58 02) 643 (52) 449 (57) 5.04 (55) SIOO.0 9194 9197 9100 9/03 9106 6/09 Mcdin 3.54 7 83 6.44 6.67 6 45 1.66 5.13 -Total Fnad Cowasile -Fixed Total POIIN 1 I I 1 1 I Qumr Q-m. **. Q..r*r Qum. EdiW wing Endimg EdDg Ending Edhg Ikc2loll %p2008 .Inn-2008 M.FZ008 Dee-2007 Qlune. M.&m -3.11 (83) -1.17 (70) 2.34 (35) 2.69 (62) Tm1.l Fur4 Cmmpsiirr 0.u (33) 8.12 12) 4.58 l3T 449 (30) -1.02 (58) 2.17 (46) 3.00 (40) Fkd T0t.l Policy 0.12 (69) US Bmad Met Core Fired lncomc (SAICF) Median -1.39 4 95 1.99 2.90 0.53 3 84 23 ? THE BOGDAHN GROUP Palm Beach Gardens General Employees' Total Fixed Composite June 30,2009 I I 750 , 8 Total Fircd Compos~t~ 0 Fixed Total Vdq - Median Risk iYlnd.rd Dwistion %i RItUnr SIsOdnrd Dwihm 6 83 5 26 6 43 3 45 6 45 4 03 , ,Ji:j-'= ow I so L___ 6 00 8 00 1000 I2 c" I50 4 50 6 00 7.50 9 00 10.50 Ri$klStmd.td aGslian%) R*tUun Stsodid IkrGlan 8 Total Fixed Composite 5 47 4.48 0 FiradTofal Policy 5 04 3 SI - Mcdm 513 3 67 Downside Rkk Total Fixed Canposik 2.37 109.80 1l7.24 -0 45 0.18 o 70 I I4 2.71 Fixed Total Policy 0 00 lW00 l00.00 0ng N:A 0 79 100 I 82 Beta Sharp Ratio I'P DOrn Md'd Mirkrt Alpha IR CW"m c,ptU,* T*.CLi".. Error DOWIlSide Ruk Total Fixed CompoUtc 194 101.48 89 38 0 34 0.22 0 s5 I02 2.29 Firad Total Volicy 0.00 100.00 IOO.00 O.w N?A 0 52 1.00 1.8.3 Br,. Sharp Ratio 1JP D- M*.l..l Market Alpha IR C.PIWC C.PtU.C T,.Cb* E...?, 24 7 THE qJ BOGDAHN GROUP Palm Beach Gardens General Employees' Sawgrass Fixed June 30,2009 15.00 10.00 - h - 5.00 d - 5 0.00 -5 00 - I_-- - I ort-2owI 1 2 3 4 3 Qu..,n TO Year YUrS Y..n Yean Ye." 240 (71) 11 65 (4) 8 17 (21) 741 (34) 6 83 (39) NIA NIA 178 (85) 6 57 (71) 605 (SJ) 658 (52) 643 (52) NIA NIA Jvn-2009 3 54 7 83 644 6 67 6 45 466 I13 S950 1 , 12105 9/06 6107 3108 12108 6109 -Sswprr Find Policy - Sawgrarr Fiud I I I I I I Qu...rrr Quam. V".llU Vu.*r V..*r Qu.*. Ending Endin. Ellding Emding Cadiag E.dorg Mar-ZOm Drc20rJ.Y &p-20rJ.Y lun2008 M.c-2008 D-2Wl 0.84 (33) 8.12 (2) -3.11 (83) -1.17 (70, 2J4 (35) 2.69 (62) 0.12 (69) 4.58 (37) U.49 (30) .I 02 (58) 2.17 146) 3.00 (40) hpnr Fixed Snugrars Fixed Policy US Bmd Ma&$ Cae Fixed lnsmc (SAICF) Median 0.53 384 -1.39 u 95 1.- 2.90 25 T /c-l BOGDAHN P-Dnr m Palm Beach Gardens General Employees' Sawgrass Fixed June 30,2009 PNb-OC 66- 62- ;? I000 7.50 3.00 0.00 - U i -2.50 5.00 2.50 0.00 .. .... s - d - - = E !':It__ isn 2.00 6 00 8 00 12.00 I50 3 no 6 00 7 50 9.00 in.5n 1 26 7 qJ BOGDAHN GROUP Palm Beach Gardens General Employees' Benchmark History As of June 30,2009 S&P 500 Index Barclays Capital US. Govemment/Credit Effective Date: Jan-ZOO6 Barclays Capital Aggregate S&P 500 Index Effective Date: Jan2007 S&P 500 Index Barclays Capital Aggregate MSCI EAFE Effective Date: Apr-2008 S&P 500 Index Barclays Capital Aggregate 60.00 40.00 40.00 60.00 60.00 35.00 5.00 65.00 30.00 5.00 MSCI EAFE Effective Date: Oct-1994 Barclays Capital US. GovemmenVCredit IOO.00 I Effective Date: Jan-ZOO6 Barclays Capital Aggregate 100.00 I S&P 500 Index Effective Date: Jan-ZOO7 S&P 500 Index MSCI EAFE Effective Date: Apr-2008 S&P 500 Index MSCI EAFE 100.00 95.00 5 .oo 93.00 7.00 Effective Date: Nov-2005 Barclays Capital U.S. GovemmenVCredit Effective Date: Jan-ZOO6 Barclays Capital Aggregate 100.00 100.00 Statistics Definitions Excess Return Active Return Excess Risk Up Market Capture Down Market Capture r Description Statistics Return Standard Deviation Sharpe Ratio Alpha Beta R-Squared Treynor Ratio Downside Risk I Tracking Error Information Ratio Consistency 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 ofthe excess return. The result is the absolute rate of return per unit of risk. The higher the value, the better 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 measured 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-diversifiahle or systematic risk. - The percentage of a pottfolio's performance explained by the behavior of the appropriate benchmark. High R-Square means a higher correlation of the porrfolio'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 over 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 better 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 by dividing the active rate of return by the tracking error. The higher the Information Ratio, the more value-added - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. The higher the consistency - 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 contribution by the manager. figure, the more value a manager has contributed to the product's performance. - A measure ofthe 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 product performance. I - -- ME Calculation bared on monthly periodicity. 28 I /C,BOGDAHN GROUP