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HomeMy WebLinkAboutAgenda Fire Pension 051010THE RESOURCE CENTERS, LLC 4360 Northlake Boulevard, Suite 206 ❖ Palm Beach Gardens, FL 33410 Phone (561) 624 -3277 ❖ Fax (561) 624 -3278 ❖ www.RESOURCECENTERS.COM PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND Meeting of Monday, May 10, 2010 Location: Council Chambers, Palm Beach Gardens City Hall 10500 North Military Trail Palm Beach Gardens, FL 33410 Time: 9:00 A.M. U, - Nor-, 1. Call Meeting to Order 2. Minutes of Meetings Held March 15, 2010 3. Investment Manager Report: Dana Investment Advisors 4. Investment Monitor Report: Bogdahn Consulting • Quarterly Investment Report • Discussion on Real Estate Investments • Discussion on Peer Group Percentages for the 3 and 5 year Periods for Dana 5. Attorney Report: Bob Sugarman • Status of Proposed Ordinance 6. Administrative Report: Margie Adcock • Disbursements 7. Other Business • Proposed Amendment to Actuarial Services Agreement • Review Status of Disability Recipients • Board Review of Current Contract with Custodian 8. Schedule Next Meeting: Monday, July 26, 2010 at 9:00 A.M. 9. Adjourn PLEASE NOTE: Should any interested party seek to appeal any decision made by the Board with respect to any matter considered at such meeting or hearing, he will need a record of the 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 accordance with the Americans With Disabilities Act of 1990, persons needing a special accommodation to participate in this meeting should contact The Resource Centers, LLC no later than four days prior to the meeting. PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND MINUTES OF MEETING HELD March 15, 2010 A meeting of the Board of Trustees was called to order at 9:00 A.M. at Council Chambers, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES Tom Murphy Rick Rhodes Ed Morejon Donna Wisneski Roy 011iff MINUTES OTHERS Margie Adcock, Administrator Bob Sugarman, Attorney Joe Bogdahn, Investment Monitor Mike Spencer, Investment Manager Brad Armstrong, Actuary The Board reviewed the minutes of the meetings held January 13, 2010 and January 25, 2010. A motion was made, seconded and carried 5 -0 to accept the minutes of the meetings held January 13, 2010 and January 25, 2010. ACTUARY REPORT Brad Armstrong appeared before the Board. He presented the September 30, 2009 Actuarial Valuation which determines contributions for the fiscal year beginning October 1, 2010. He stated that the Fund faired relatively well. Virtually every other fund he works with, locally and nationally, did not fair as well. He stated that it was a challenging year for the investment markets, especially the quarter ending December 31, 2008. He stated that the principal sources of experience gains and losses were: a gain of approximately $1.1 million due to a 2.8 average salary increase versus an expected salary increase of 5.2 %; a loss of approximately $1.4 million due to the rate of return on the value of assets of 2.3% versus the assumption of 8.25% gross; and a loss of approximately $.6 million due to 0 terminations versus the 4.6 expected. Mr. Armstrong discussed the contribution requirement. He stated that the City contribution requirement increased by 1.26% of payroll to 34.99% of payroll or $3,745,497. The Share Accounts totaled $4,664,308 as of September 30, 2009 with 118 members. The funded ratio increased from 56.8% to 59.7% excluding the Share Accounts. If the Share Accounts were included, the funded ratio increased from 61% to 63.5 %. Mr. Armstrong reviewed the derivation of funding value of assets and discussed the four -year smoothing. There was discussion on the effect of turnover and the possible decrease in the number of members in the Plan. A motion was made, seconded and carried 5 -0 to approve the September 30, 2009 Valuation. There was then discussion on the Share Accounts. Mr. Armstrong provided Share Account Statements for the terminated vested and DROP Participants. There was discussion on how long a Participant could leave their Share Account money in the Fund. 2 It was noted that DROP Participants are active firefighters so they would continue to get Share Account allocations. With respect to terminated vested Participants, they receive allocations through their date of termination of employment. However the Ordinance is not clear if they have to take their Share Account at termination of employment or if they can leave it in the Plan. Mr. Sugarman stated that he reviewed the Plan and the Ordinance provides that the Share Account is "payable ", not "paid ". Therefore, the Share Account does not have to be paid out when they terminate employment. There was discussion on the pros and cons of allowing Participants to leave their Share Account monies in the Plan once they terminate employment. There was a lengthy discussion. It was noted that there was no need to make a decision at this time. The Board decided that they wanted to discuss this matter further at a future meeting. There was further discussion regarding the concerns of the service providers in having a forced distribution upon separation of employment. Mr. Sugarman stated that he would rather have the Board get rid of the liability once a Participant separates from service. He would not want a Participant to be unhappy with the investment returns that they are receiving with the Board. However he could deal with his concern by having the Participants sign a waiver. It was noted that the current practice is that the Share Account monies are payable upon request of the Participants. There was more lengthy discussion. It was noted that the Actuary could do a final calculation of a Participant's Share Account balance. The Board would then approve the calculation prior to payment. If that were the case, it would take about 60 days past the end of the quarter or five months after termination from employment before payment could be made. Mr. Sugarman stated that he would work on an Ordinance to reflect this. Further discussion took place. The Board decided that they wanted to look at this issue more. A motion was made seconded an d carried 5 -0 to table this matter for further discussion at a future meeting. Mr. Armstrong provided the impact statement of closing the Plan to new hires and allowing existing members to transfer to FRS. He reviewed the impact statement dated February 19, 2010. The Board reviewed the current contract with the Actuary. It was noted that the contract had a term of October 1, 2005 to September 30, 2008 and is now a year -to -year contract. If the Actuary would like to adjust the contract, he should present a proposal to the Board. Mr. Armstrong stated that he would prepare a proposed fee schedule for upcoming years. Brad Armstrong departed the meeting. INVESTMENT MANAGER REPORT (RBC GLOBAL ASSET MANAGEMENT) Mike Spencer appeared before the Board. He stated that they used to be Voyageur Asset Management. He discussed the name change. He stated that there was no ownership change. They have always been owned by RBC Global Asset Management. They extended branding to all of the subsidiary companies. There have been no investment management changes. Mr. Spencer discussed the international equity product. He 3 discussed their objective, which is to indemnify the best values in the world. They look for cash flow. He reviewed performance as of February 28, 2010. For the year to date the portfolio was down 2.93% while the EAFE was down 5.05 %. For the quarter ending December 31, 2009, the portfolio was up 1.53% while the EAFE was up 2.23 %. For the calendar year 2009, the portfolio was up 53.48% while the EAFE was up 32.45 %. Since inception of January 1, 2006, the portfolio was up .34% while he EAFE was up the same. Mr. Spencer reviewed calendar year 2008. He stated that hit was a very bad year. They owned a lot of Japanese companies that were not involved in global trade. They had a huge weighting in Japan at the end of 2008. They were good companies and did well, but the overall market was dropping. They sold almost one -half of Japanese holdings and reinvested the cash slowly over a two -month period. They deployed cash back into companies they already had. He reviewed their buys and sells in 2009. He discussed their 2009 strategy. He discussed their outlook. He thinks they will have more turnover than usual. They will do some selling at the end of the first quarter so they will have more cash in the account. They believe that Asia is the most attractive place o put the money right now. Mike Spencer departed the meeting. INVESTMENT MONITOR REPORT Joe Bogdahn appeared before the Board. He stated that he reviewed performance for the quarter ending December 31, 2009 at the last meeting. There was discussion at the last meeting on the American Core Realty Fund. He provided information on the quarter ending December 31, 2009 and the calendar year 2009 for American Realty. He reviewed the fund diversification. He reviewed property type, geographic region and property size. He stated that he was not displeased with American Realty at all. Over the three -year period they are in the top quartile of their peer group. He thinks the market is in the bottom end of the trough of real estate. For those plans that do not have real estate, now is the time to add exposure to that. He thinks it might be a good time to add to real estate and would take the money from fixed income. He thinks it might be the end of the year before they were to see a rebound. He stated that for the next meeting he would bring an action plan and would discuss with American Realty their call procedure. He also discussed the possibility of possibly adding a different real estate manager, such as Intercontinental. He thinks the two mangers would blend well together. Mr. Bogdahn discussed the Revised Investment Policy Statement (IPS). He provided a revised IPS based on discussion at the last meeting and reviewed the Statement. There was a lengthy discussion on the various changes. The Board stated that they wanted to see the changes in legislative style so they can see what language was stricken and what language was added. Mr. Bogdahn stated that he would provide the requested information for the next meeting. Mr. Bogdahn stated that at the next meeting he would discuss the peer group rankings for the three and five -year time periods for total equities and Dana. He stated that total equity is fine, but the Dana Core for the three and five year time periods is below the 4 median and the Dana Growth is below the median for the five year period. He will provide a report for the next meeting. ATTORNEY REPORT Mr. Sugarman discussed the status of the revised Ordinance. He stated that he sent it to the City Attorney and has not received a response as of yet. Mr. Morejon stated that he wanted to get the exact dates that the proposed Ordinance was sent to the City Attorney, as the Board is getting no response form the City. Mr. Sugarman stated that it was sent to the City Attorney by email on March 4. Mr. Morejon noted that the Police changes went through about a month ago. The Board discussed holding off on the IPS to wait for the Ordinance to pass because the IPS will just need to be changed once the Ordinance passes. A motion was made, seconded and carried 5 -0 to table the IPS until the proposed Ordinance passes. Mr. Sugarman stated that he revised the Agreement with the Investment Monitor. He stated that the Agreement is in proper legal form and is ready for execution. A motion was made, seconded and carried 5 -0 to accept the Agreement with the Investment Monitor. Mr. Sugarman departed the meeting. ADMINISTRATIVE REPORT Ms. Adcock provided the final Audit, Governance Letter and Representation Letter she received from Steve Gordon. Ms. Wisneski stated that she reviewed her concerns and had discussions with Mr. Gordon. She stated that he would do an investment breakout and the Management Discussion and Analysis next year. As far as the Audit there were only minor wording changes and the numbers remained the same. She recommended accepting the Audit, Governance Letter and Representation Letter. A motion was made seconded and carried 5 -0 to accept the Audit, Governance Letter and Representation Letter Ms. Adcock presented the list of disbursements to be made. The Board discussed their concerns about the legal bills and how high they are getting and whether some of the work was asked for by the Board to be done. It was noted that the entry for the last meeting was for $2,400, which looked like it included travel time. Bob Sugarman reentered the meeting. The Board discussed their concerns with Mr. Sugarman. Mr. Sugarman stated that he would take off 2.5 hours from his bill for travel for the last meeting. A motion was made, seconded and carried 5 -0 to approve the disbursements with the deduction of 2.5 hours from the legal bill. OTHER BUSINESS The Board reviewed the status of the disability recipients. Ms. Adcock provided a chart of those receiving disability benefits. It was noted that anyone that feels there is an issue with any disability recipient could call the Attorney directly to investigate. Mr. Sugarman discussed the process of reviewing the disability recipients. He noted that in this City a person must be reemployed in order to lose their pension benefits. The Board reviewed the disability recipients. There was a lengthy discussion. A motion was made, seconded and carried 5 -0 to table this matter until the next meeting. There being no further business, the meeting adjourned. Respectfully submitted, Tom Murphy, Secretary As of March 31, 2010 DANA INVESTMENT ADVISORS, INC. 15800 WEST BLUEMOUND ROAD SUITE 250 P.O. Box 1067 BROOKFIELD, WISCONSIN 53008 -1067 www. DANA INVESTMENT. COrn Table of Contents Page(s) 3 Performance & Allocation 13 Economic Market Outlook 23 Large Growth Portfolio Review 27 Large Value Portfolio Review 31 Small Cap Portfolio Review 35 Holdings as of 3 -31 -10 39 Broker Commission Report Palm Beach Gardens Firefighters' Retirement System Account Profile Russell 3000 Index* Performance vs Comparables (doss of Fee Total Return Unannualized Fiscal 2nd Qtr 2010 Fiscal Year -to -Date 12 -31 -09 to 3 -31 -10 1 9 -30 -09 to 3 -31 -10 5.97% 1 12.19% EQUITY ONLY Average Annual Since Inception 6 -10 -02 to 3 -31 -10 3.85% Firefighters' Large Cap Growth Achieve a return over 3 -5 years in excess of target index. Rank in top 40% of representative portfolios 3 -5 years. Investment Objectives: Volatility of fund's total return is expected to be similar to target index. Comparative Indices: Russell 3000 Investment Restrictions: No more than 3% of assets in any one issuing company. Russell 3000 Index* Performance vs Comparables (doss of Fee Total Return Unannualized Fiscal 2nd Qtr 2010 Fiscal Year -to -Date 12 -31 -09 to 3 -31 -10 1 9 -30 -09 to 3 -31 -10 5.97% 1 12.19% EQUITY ONLY Average Annual Since Inception 6 -10 -02 to 3 -31 -10 3.85% Firefighters' Large Cap Growth 4.59% 11.89% 11.89% Russell 1000 Growth Index 4.64% 12.95% 12.95% Firefighters' Small Cap / Large Value 6.84% 11.36% 11.36% S &P 500 Index 5.39% 11.76% 11.76% From the market low on • ii• to - equities 72.34% or $ 5,301,400 Asset Allocation ❑ Dana Lrg Value ❑ Money Market $6,339,063.57 $121,129 ° ❑ Dana Small Cap 0.8% $1,472,355 ❑ Dividends Accrued 10.2% $22,113 0.2% ■ Dana Lrg Growth $6,473,259 44.9% Fiscal = 9 -30 * S &P 500 6 -10 -02 to 7 -1 -05: Russell 3000 7 -1 -05 to current The information set forth above is based upon information believed to be accurate and reliable but we do not guarantee its accuracy. Dana Investment Advisors, Ir� Q1 2010 Equity Market Summary Companies reporting significant earnings growth and beginning to experience revenue growth as well Economic data pointing to continued recovery Industrials, financials and consumer discretionary led the market higher in Q1 Commodity cyclicals (energy, materials) underperformed Small caps outperformed large caps in Q1 Large cap value stocks outperformed large cap growth in Q1 and over the last twelve months Lower return differential between high and low quality stocks in Q1 (still slightly favoring low quality) Index Returns S &P 500 NASDAQ Russell 1000 Growth Russell 1000 Value Russell 2000 p Q1 2010 ■ 12 Months ending 3/31/10 0% 10% 20% 30% 40% 50% 60% 70% Large Cap vs. Small Cap Small caps outperformed large caps by a wide margin in Q1 2010 and now lead over the past year Dollar strength, small cap earnings finally rebounded in Q4 Small cap valuations trading at a 26% premium vs. large caps 26 24 22 20 18 16 14 12 10 S &P 500 - Price to Earnings Ratio S &P Small Cap 600 - Price to Earnings Ratio Recession Periods - United States 101 '02 '03 '04 105 '06 '07 108 '09 Low Quality Equity Rally in 2009 Dana equity strategies focus on high quality companies that are profitable and consistently generate positive free cash flow. Historically, our strategies have been remarkably consistent in generating relative out - performance. Dana Large Growth beat the R1000G Index in 7 of the past 9 years (78 %). Dana Large Value beat the R1 000V Index in 6 of the past 8 years (75 %). From March 9, 2009 to December 31, 2009, the S &P 500 returned +68.1 %. Dana equity strategies posted strong absolute returns in 2009, but the strong performance of "lower quality" stocks during the period made it difficult for managers focusing on higher quality investments to generate relative out - performance. Consider the following: • Unprofitable companies: +110% • Negative free cash flow companies: +95% • Negative ROE companies: +107% • Top quartile leverage (debt /EBITDA): +87% • Top quartile short interest: +91% • Small cap stocks: +193% • Stocks priced <$5: +215% r c � c ca ' 0 200 150 100 50 0 Total Return Since Market Bottom by S &P Quality Rating 82.1 83.1 106 A+ A A- B+ B S &P Quality Ranking 190.1 138.3 138.5 B- C NR Financial Strength Comparison Dana's equity investment process focuses on companies with strong fundamentals, including profitable companies with rising earnings and free cash flows ➢ Value Line Financial Strength rankings shown below, B+ rating is considered "average" ➢ 87% of the Large Value portfolio holdings rank B+ or better for Financial Strength, versus only 78% within the R1000V index Comparison of Holdings By Financial Strength 30.00 25.00 ■ Dana Large Value ❑ Russell 1000 Value 20.00 •� 15.00 10.00 5.00 A ++ A+ A B ++ B+ B C ++ C+ C Composite weight at 3/30/2010 Dana Large Growth Portfolio Characteristics Consistent Portfolio Characteristics Lower Valuation + Higher / Equivalent Growth + Higher Profitability = Better Returns With Lower Risk rice o arnings Ratio (forward 22.0 21.7 20.0 18.0 15.6 16.0 14.0 Dana Large Russell 1000 Growth Growth & Y-- I a....o L M 12.0 11.0 10.2 10.4 10.0 - rv--] E7R 9.0 Dana Large Russell 1000 Growth Growth Return on Equity (ROE) 27.00 26.30 26.00 - 25.25 25.00 24.00 - Dana Large Russell 1000 Growth Growth Price to Cash Flow 16.0 15.1 14.0 12.0 11.4 10.0 71 Dana Large Russell 1000 Growth Growth 17.0 16.0 - 15.3 15.1 15.0 14.0 Dana Large Russell 1000 Growth Growth Market Cap (Average /Median) 100.0 77.8 75.0 58.8 50.0 25.8 25.0 4.9 0.0 - Dana Large Russell 1000 Growth Growth Actual Composite Holdings as of March 31, 2010 Dana Large Cap Value Portfolio Characteristics The Dana "Triple Play" Lower Valuation + Higher Growth + Higher Profitability = Better Returns With Less Risk L rice to Earnings Ratio (trailing ) � J l Return on Equity (ROE) Price o Ratio (forward) 16 14.0 14 12.1 12 - 10 Dana Lg Val Russ 1000 Val 12 10.5 10 -F 8.8 8 Dana Lg Val Russ 1000 Val Market Cap (Average /Median) 100 - 71.4 75 56.7 50 22.5 25 4.1 0 Dana Lg Val Russ 1000 Val Actual Composite Holdings as of March 31, 2010 Performance Since Inception Although the past decade was challenging for equity investors, Dana's Large Growth strategy was able to significantly outperform most major U.S. equity indices since its inception in 2001. Total Return Since Inception Portfolio Annualized Cumulative Dana Large Cap Growth 4.73% 51.64% S &P 500 2.01% 19.57% Russell 1000 2.49% 24.81% Russell 1000 Value 3.42% 35.31% Russell 1000 Growth 1.42% 13.55% Russell 3000 2.75% 27.69% Russell 3000 Value 3.74% 39.12% Russell 3000 Growth 1.62% 15.57% Dow Jones Industrial Average 3.53% 36.64% NASDAQ Composite Index 2.99% 30.33% 3 -Month T -Bill 2.23% 22.01% Period 3/31/01 to 3/31/10 2000 -2009: Lost Decade? Although the past decade was challenging for equity investors, Dana's Large Value strategy was able to significantly outperform most major U.S. equity indices since its inception in June 2001. Total Return Since Inception Portfolio Annualized Cumulative L Dana Large Cap Value 4.06% 41.63% S &P 500 1.40% 12.96% Russell 1000 1.85% 17.40% Russell 1000 Value 2.95% 29.01% Russell 1000 Growth 0.53% 4.73% Russell 3000 2.05% 19.47% Russell 3000 Value 3.23% 32.05% Russell 3000 Growth 0.66% 5.90% Dow Jones Industrial Average 2.86% 28.02% NASDAQ Composite Index 1.20% 11.01% 3 -Month T -Bill 2.19% 20.92% Through 3/31/10 2000 -2009: Lost Decade? Although the past decade was challenging for equity investors, Dana's Small Cap Equity strategy was able to significantly outperform most major U.S. equity indices for the 10 year period ending 3/31/10. Portfolio Dana Small Cap Russell 2000 S &P 500 Russell 2000 Growth _ 3i1i1i1 Dow Jones Industrial Average NASDAQ Composite Index 3 -Month T -Bill Total Return Past Decade Annualized Cumulative 7.57% 107.36% 3.68% -0.65% -1.53% -0.07% 2.29% -6.25% 2.57% Through 3/31/10 43.59% -6.35% - 14.25% -0.73% 25.43% - 47.54% 28.86% Macroeconomic Background e GDP Evidence continues to mount that recession has technically ended. Housing and Employment will continue to face bumpy road. The Fed will reduce some quantitative easing programs but may hold off raising Fed Funds rate until unemployment shows marked improvement. Global growth picture continues full steam ahead, despite struggles in Europe. Earnings and economic data continue to beat estimates. IIIIII.II1161„i 11111111111111.1 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 (% 1 Q Ann) Gross Domestic Product, Bil. Chained 2005 $, SAAR - United States Recession Periods - United States 10 8 6 4 2 0 -2 MI V F The Fed and The Economy The Fed will keep short rates low until slack in employment and industrial capacity improves. The current inflation picture is still benign, and the Real Fed Funds rate is relatively neutral. Real Fed Funds Rate 6 Note that the Real Fed Funds 4 rate remained elevated well 2 into the recession. Note 0 also the prolonged 2 negative rate last decade. -4 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 109 Federal funds rate (effecti\te), NSA - United States - Personal Consumption Expenditures, Excl. Food & Energy, I Recession Periods - United States Capacity Utilization '67 '69 '71 73 75 '77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 Capacity Utilization, Total Index, Nsa - United States � Recession Periods - United States X17 85 Capacity Utilization reveals a lot of 80 slack. Combined with the unemployment 75 rate, this data is referred to as "the output 70 gap." 65 Employment Situation US Initial Claims for Unemployment Insurance (000's of persons) 00 01 '02 '03 '04 05 '06 '07 08 09 US Unemployment Rate jj j j j '00 '01 '02 '03 '04 '05 '06 '07 Unemployment Rate - Percent, SA - United States � Recession Periods - United States US Change in NonFarm Employment MoM '08 '09 700 650 600 Initial Jobless 550 Claims will 500 continue to 450 decline. 400 350 300 250 200 11 9 Some forecasters $ believe that the 7 unemployment 6 rate has peaked. 5 4 3 Launch full data release 600 1162-00 200 o / -200 j -400 600 j 800 / -1.000 00 01 '02 03 '04 '05 06 '07 '08 '09 (DIFF 1M) All Employees, Thousands Total Nonfarm SA - United States [Max: 369.00, Min: - 779.00, Last: 162.001 Recession Periods - United States The March Non - Farm Payrolls number was positive. Leading Economic Data US Index of Leading Indicators (6M %, AR) 15% 10% 5% 0% -5% Launch full data release 15% 10% Leading Indicators 5% are up strongly and have maintained strength. 0% -5% -10% -10% '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 109 ISM Survey 70 W ISM indicates 50 surprising strength in manufacturing. 40 CO 20 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 ISM (NAPM) Production, Index - United States Recession Periods - United States Velocity of Money 2.20 2.00 1.80 Monetary velocity has bottomed, 1.60 indicating liquidity is having desired 1.40 impact. 1.20 1.00 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 Gross Domestic Product, Bil. $, SAAR - United States / Money supply M2 (bil. $) Recession Periods - United States Balance Sheets are Cash Rich 1200 1000 M -T 400 200 Cash as a % of U.S. companies' overall market capitalization is currently at 60 year highs Free cash flow remains strong, S &P 500 on track to generate almost $800 billion in FCF in 2010 Aggressive actions involving dividends, M &A and share buybacks could be an important market catalyst looking forward 0i 00 M CO U U U N N N �MIMMW Source: Corrp�s:a: Dev:sche Bari M CO U-) f` M T— M U') f` M 00 G) 0) 0) 0) 0) O O O O O U U U U U U U U U U U N N N N N N a) N N N 1200 Wes, :ye] .Ift e 200 Ii] P/E Valuations Don't Tell The Whole Story! SSP 500 (Operating Basis) (SPX) S0MarNTMP,3t Mar- 20t0(MOnthly) Historical S &P 500 Forward P/E Ratio (Operating Basis ■ NTM Price [o Earnings Averaye '95 .96 '97 '88 '99 '00 '01 '02 '03 '04 'OS '06 '07 '08 '09 Source: FactSet Data Systems, S &P Market valuations are reasonable based on historical forward P/E expectations ■ Valuations are even more attractive when adjusting for "net cash" for companies with high cash balances, low debt and consistent free cash flow. ■ Example: Apple Computer ■ AAPL doesn't have any long -term debt, consistently generates free cash flow (roughly $813 /year) and has almost $25 billion in cash & equivalents ■ "Net Cash" at AAPL surpasses $27 /share ($2513 / 920m diluted share count) Forward NTM P/E "Cash Adjusted" Fwd P/E Recent Price / Share $240 $240 Net Cash Adjustment -0- (27) Adjusted Price / Share $240 $213 First Call NTM Est. $12.68/sh $12.86/sh Fwd P/E Ratio 18.7x 16.6x Dividends ➢ S &P 500 dividends per share fell 15% in 2009 ➢ Dividends are rebounding, the number of dividend raises are 50% higher year -to -date vs. the same period in 2009 ➢ Approximately 1/3 of S &P 500 companies that announced a dividend increase in Q1 are held in at least one Dana strategy S &P 500 - Dividends per Share 35 Recession Periods - United States 30 25 20 15 10 5 0 100 101 '02 103 Mq=q Dana Investment Strong Fundamentals Dana Large Value Dana Large Value holdings that have raised their dividend payments since the 4t" quarter 2008 Company YieldT Dividend Change Lockheed Martin Corp. 3.39% 35.71% Tyco International Ltd. 2.34% 33.33% AmerisourceBergen Corp. 1.06% 33.33% McDonald's Corp. 3.88% 33.33% Murphy Oil Corp. 1.61% 33.33% CVS Caremark Corp. 0.84% 27.08% Union Pacific Corp. 1.81% 22.73% Philip Morris International Inc. 4.60% 17.39% AFLAC Inc. 2.45% 16.67% Ameriprise Financial Inc. 1.84% 13.33% Sempra Energy 2.97% 11.43% Abbott Laboratories 3.20% 11.11% Dominion Resources Inc. (Virginia) 5.02% 10.76% International Business Machines Corp. 1.73% 10.00% Procter & Gamble Co. 3.06% 10.00% Texas Instruments Inc. 2.02% 10.00% General Mills Inc. 2.91% 9.30% General Dynamics Corp. 2.32% 8.57% Flowserve Corp. 1.05% 8.00% Verizon Communications Inc. 6.55% 6.98% Johnson & Johnson 3.13% 6.52% Chubb Corp. 2.73% 6.06% ONEOK Inc. 4.47% 5.26% Exxon Mobil Corp. 2.40% 5.00% Kimberly -Clark Corp. 4.03% 3.45% Occidental Petroleum Corp. 1.64% 3.13% AT &T Inc. 6.41% 2.50% Edison International 3.70% 1.64% Merger &Acquisition Activity U.S. companies have made over 2,000 deals in Q1 2010, up nearly 30% year- over -year Acquirers often experiencing positive stock price reactions after announcing accretive acquisitions A sample of Dana holdings making accretive acquisitions are shown below Acquirer % Return Company MET American Life Insurance PVH Tommy Hilfiger PRGO PBM Holdings Day of Announcement 5 Days Post Announcement 5.10% 8.10% 9.80% 12.50% 11.90% 13.90% Market Bull and Bear Arguments Bull Case: Economic indicators are strengthening Valuations remain reasonable EPS growth expected to be 20 %+ in each quarter in 2010 Companies reporting top line growth Record amounts of cash could lead to shareholder friendly actions (dividends, share repurchases, accretive M &A) Global monetary policy remains accommodative Bear Case: Prospect of higher interest rates could put a cap on equity market multiples Business and consumer deleveraging continues to weigh on the economy Political uncertainties creating a drag on business capital investment & job creation Continued high unemployment impeding U.S. disposable household income and consumer spending Credit availability still difficult given tougher loan underwriting criteria Performance Attribution Large Cap Growth Q1 Sector Contributors Materials: All sector holdings outperformed sector; LZ +26 %, FMC +8 %, FCX +4% Health Care: Strong performance from generic drugs / distributors Energy: WMB +10 %, NE +3% Q1 Sector Detractors Information Technology: QCOM -8 %, TXN -5.5 %, relative underweight in AAPL Industrials: Number of holdings up double digits (PCP, UNP, DOV, NOC), but AVY, MMM laggards Consumer Staples: KMB flat vs. +5% sector average i op individual Contributors Individual Laggards Perrigo Co. +48% ■ QUALCOMM Inc. -16% Lubrizol Corp. +26% ■ Avery Dennison Corp. -11% Mylan Inc. +23% ■ FPL Group Inc. -10% priceline.com Inc. +17% ■ Coca -Cola Enterprises -9% eBay Inc. +15% Newell Rubbermaid -8% ■ Apple Inc. +11% Texas Instruments Inc. -4% Selected Additions /Deletions Large Cap Growth Additions: Church & Dwight Co. (CHD) — consumer products company experiencing consistent revenue & EPS growth despite recession; strong upward estimate revision & surprise history; solid free cash flow generation; margins trending upwards & attractive overall risk /reward Dover Corp. (DOV) — diversified industrial products maker experiencing strong rebound in orders; accelerating revenue & EPS growth; consistent free cash flow generation, strong upward estimate revisions Perrigo Co. (PRGO) — commands 70% market share of private label OTC drug market; uniquely positioned to capitalize on strong long term trends as private label OTC drugs gain market share over branded rivals; attractive revenue & EPS growth; expanding margins, consistent & rapidly accelerating free cash flow Whirlpool Corp. (WHR) — earnings expected to rebound sharply in 2010; indirect play on recovering housing market; attractive relative valuation vs. peer group; positive estimate revision trends; exceptional FCF generation & strong balance sheet support continued investment in emerging markets Deletions: Avery Dennison Corp. (AVY) — unanticipated significant earnings miss and lackluster forward guidance; downward estimate revisions creating uncertain future growth prospects Baxter International (BAX) — classic case of selling one stock we like for one we like even better (PRGO) Mead Johnson Nutrition Co. (MJN) — strong past performance expanded valuation past near term target prices; unattractive future risk /reward prospects Newell Rubbermaid (NWL) — earnings miss & lower EPS guidance in January creating unfavorable forward estimate revisions; earnings guidance expectations pushed back to second half of 2010; rising SG &A expenses and currency headwinds; (replaced with WHR to improve visibility into future growth prospects) Earnings Surprise History Large Cap Growth Dana's Large Growth equity holdings are executing well from a fundamental standpoint Dana holdings continue to experienced a higher ratio of positive vs. negative earnings surprise compared to the Russell 1000 Growth Index Ratio of Positive / Negative Earnings Surprises (Latest Qtr) Dana Large Growth Russell 1000 Growth 3.0 3.5 4.0 Dana Large Growth Risk - Reward Measures Excess Return to Benchmark 0) Dan Russell I Large 9 1000 Growth Growth 3.94% 0.00% Dana Large Growth 2.82% Alpha 3.71% 0.00% 2.90% Beta 0.87 1.00 0.92 Volatility 16.41% 17.14% 16.41% Tracking Error 7.13% 0.00% 7.76% Correlation to Benchmark 0.91 1.00 0.88 Batting Average (2) 0.58 0.61 Dana Large Growth portfolio performance characteristics versus Russell 1000 Growth and S &P 500 indexes All data are annualized, since inception (2/23/2001 to 3/31/2010) Values are calculated using monthly returns (except batting average, which is quarterly) S &P 500 (1) Excess return is the difference between annualized returns of the Dana Large Growth composite and the benchmark (2) Batting average is the number of quarters in which the composite outperformed the benchmark divided by the total number of quarters 0.00% 1.00 15.79% 0.00% 1.00 Performance Attribution Large Cap Value Q1 Sector Contributors Telecom: strong returns from NII Holdings, relatively underweight AT &T and Verizon (both laggards) Materials: outperformance within chemicals holdings (Lubrizol and DuPont) Utilities: strong relative performance in Electric Utilities (Northeast Utilities) Q1 Sector Detractors Consumer Discretionary: underperformance within the Specialty Retail group, lack of Automotive exposure Info Tech: weak performance within Computers & Peripherals (IBM) and Semiconductors (TXN) Energy: relative weakness in the Equipment & Services group (NOV) and E &Ps (CHK) Top Individual Contributors Unum Group Lubrizol Corp. NII Holdings General Electric +29.7% 1 +27.0% +26.2% Individual Laggards Chesapeake Energy -12.9% Sempra Energy -12.6% Texas Instruments -3.1% +21.9% 1 National Oilwell Varco -3.0% PNC Financial Services +18.4% 1 1 Abbott Laboratories -2.7% Selected Additions /Deletions Large Cap Value Additions: Chesapeake Energy Corp (CHK) — strong organic production and reserve growth; trading at discount versus peers; liquidity position has improved over the past year; gas hedges put in place at attractive levels Du Pont (E. I.) De Nemours (DD) — good leverage to economic recovery; cost controls supporting earnings; valuations attractive and dividend over 5 %; volumes are growing, and pricing power allowing input costs to be passed through Whirlpool Corp. (WHIR) — earnings expected to rebound strongly in 2010; valuation levels attractive versus peer group; attractive estimate revision trends; exceptional levels of FCF and clean balance sheet; indirect play on recovering housing market Deletions: Murphy Oil Corp. (MUR) — significant Q4 miss reported; production and earnings guidance weak; recent disappointing exploration efforts Sempra Energy (SRE) — uncertainty regarding recent Global JV divestiture and potential cash redeployment; possible dilution from sale of remaining North American JV; revisions falling McDonald's Corp (MCD) — after holding up well in 2008, the stock was lackluster in 2009; valuations losing attractiveness on a relative basis; mixed growth picture Earnings Surprise History Large Cap Value Dana's Large Value equity holdings continue to execute well from a fundamental standpoint The ratio of positive earnings vs. negative surprises Dana holdings experienced more positive earnings than the Russell 1000 Value average (79% vs. 72 %) y Dana holdings also have reported fewer negative earnings surprises (21 % vs. 28 %) Ratio of Positive / Negative Earnings Surprises (Latest Qtr) Dana Large Cap Value Russell 1000 Value 0.0 5.0 Dana Large Value Risk - Reward Measures Excess Return to Benchmark ��� 1.12% 0.00% 2.67% 0.00% Alpha 1.07% 0.00% 2.53% 0.00% Beta 0.88 1 nn 0.90 inn Volatility 16.88% 18.84% 16.88% 18.09% Tracking Error 3.79% 0.00% 4.52% 0.00% Correlation to Benchmark 0.98 1.00 0.97 1.00 Batting Average (2) 0.57 0.63 Dana Large Value portfolio performance characteristics versus Russell 1000 Value and S &P 500 indexes All data are annualized, since inception (6/20/2001 to 3/31/2010) Values are calculated using monthly returns (except batting average, which is quarterly) (1) Excess return is the difference between annualized returns of the Dana Large Value composite and the benchmark (2) Batting average is the number of quarters in which the composite outperformed the benchmark divided by the total number of quarters Dana Large R Russell 1000 D Dana Large S &P 500 Value V Value V Value Dana Large Value portfolio performance characteristics versus Russell 1000 Value and S &P 500 indexes All data are annualized, since inception (6/20/2001 to 3/31/2010) Values are calculated using monthly returns (except batting average, which is quarterly) (1) Excess return is the difference between annualized returns of the Dana Large Value composite and the benchmark (2) Batting average is the number of quarters in which the composite outperformed the benchmark divided by the total number of quarters Performance Attribution Small Cap Core Q1 Sector Contributors Health Care: outperformance within Life Sciences Tools (PAREXEL) and Health Care Providers & Services (Hanger Orthopedic) Industrials: strong results from Aerospace & Defense (Triumph Group, Stanley) Financials: Regional Bank (Bank of Ozarks, Community Bank System) and REIT (First Potomac, Entertainment Properties) holdings outperformed peers Q1 Sector Detractors Info Tech: weakness among IT Services (Telvent, Teletech) Consumer Discretionary: underperformance within Specialty Retail Materials: Container & Packaging holding underperformed peers Top Individual Contributors PAREXEL Intl. +67.4% Phillips -Van Heusen +47.7% Triumph Group Plexus Corp. Cracker Barrel Inc Individual Laggards Telvent GIT DynCorp International (- 21.6 %) +43.4% 1 BWAY Holding +31.1% Teletech Holdings +30.2% Koppers Holdings Dana Investment Advisors, Inc. (- 13.2 %) Selected Additions /Deletions Small Cap Core Additions: Insituform Technologies (INSU) — direct beneficiary of domestic infrastructure stimulus spending, year- over -year backlog increased 18% and are at historical highs, company making accretive bolt -on acquisitions Tenneco Inc. (TEN) — stricter global environmental regulations should lead to increased demand for TEN's emission control products, 2 /3rds of sales outside the U.S., high operating leverage, EPS may double between 2010 and 2011, attractive valuation OPNET Technologies (OPNT) — significant year- over -year and sequential license revenue growth, margins improving, $100m1n in cash on the balance sheet with no debt, attractive 2.4% dividend yield, trading at a wide discount to peers Deletions: DynCorp International (DCP) — disappointing quarterly earnings and forward guidance, backlog falling, potential Foreign Corrupt Practices Act violations by subcontractors Koppers Holdings (KOP) — revisions moved lower after weaker than expected Q4 results, potential production curtailments for aluminum in North America and Western Europe (key markets for KOP) Navigators Group (NAVG) — persistent stock price underperformance and unexciting earnings growth prospects led us to sell NAVG prior to an extremely poor earnings announcement (75% miss) Dana Investment Advisors, Inc. Earnings Surprise History Small Cap Equity Dana's Small Cap equity holdings continue to execute well from a fundamental standpoint Dana holdings experienced significantly more positive earnings than the Russell 2000 average (70% vs. 65 %) Dana holdings also have reported fewer negative earnings surprises (30% vs. 35 %) Dana Small Cap Russell 2000 Ratio of Positive / Negative Earnings Surprises (Latest Qtr) 0.0 1.5 3.0 Dana Small Cap Risk - Reward Measures Dana Small Cap Russell 2000 =A Excess Return to Benchmark ��� 3.89% 0.00% Alpha 4.01% 0.00% Beta 0.81 1 on Volatility 20.43% 23.58% Tracking Error 9.63% 0.000/0 Correlation to Benchmark 0.90 1.00 Batting Average (2) 0.525 Dana Small Cap portfolio performance characteristics versus Russell 2000 All data are annualized, for the 10 year period (3/31/00 to 3/31/10) Values are calculated using quarterly returns (1) Excess return is the difference between annualized returns of the Dana Small Cap composite and the benchmark (2) Batting average is the number of quarters in which the composite outperformed the benchmark divided by the total number of quarters Dana Investment Advisors, PORTFOLIO HOLDINGS Portfolio: 715comp - City of Palm Beach Gardens Firefighters' Retirement System - Comp Shares/ PAR Identifier Description Price Inc. Market Value Pct. Assets As of 03/31/2010 Accruals Cur. Owed Yield Cash .87 .00 .84 1,539 CL Colgate- Palmolive Cc Short Term Investments 131,215.14 .91 .00 2.49 5,198 CAG 000009 Cash -Money Fund 130,313.86 121,128.87 .84 .00 .01 DLM Total Short Term Investments 14.60 121,128.87 .84 .00 .01 Stocks DPS Dr Pepper Snapple Group 35.17 130,023.49 .90 554.55 Domestic Equity Strategy 1,577 GIS General Mills Inc 70.79 111,635.83 .77 Consumer Discretionary 2.77 1,891 KMB Kimberly -Clark Corp 62.88 118,906.08 3,538 BBY Best Buy Co Inc 42.54 150,506.52 1.04 .00 1.32 1,603 BGFV Big 5 Sporting Goods Corp 15.22 24,397.66 .17 .00 1.31 1,750 CAB Cabela's Inc 17.49 30,607.50 .21 .00 .00 3,191 COH Coach Inc 39.52 126,108.32 .88 .00 .76 561 CBRL Cracker Barrel Old Country Sto 46.38 26,019.18 .18 .00 1.72 1,014 DBRN Dress Barn 26.14 26,508.49 .18 .00 .00 592 GYMB Gymboree Corp 51.64 30,570.88 .21 .00 .00 2,303 KSS Kohls Corp 54.78 126,158.34 .88 .00 .00 1,474 PNRA Panera Bread Cc (CL A) 76.49 112,746.26 .78 .00 .00 636 PVH Phillips -Van Heusen 57.36 36,480.96 .25 .00 .26 471 PCLN Priceline Com Inc 255.00 120,105.00 .83 .00 .00 4,598 TGT Target Corp 52.60 241,854.80 1.68 .00 1.29 1,261 TEN Tenneco Inc 23.65 29,822.65 .21 .00 .00 475 TSCO Tractor Supply Co 58.05 27,573.75 .19 .00 .96 7,522 VIA/B Viacom Inc -Class B 34.38 258,606.36 1.80 .00 .00 2,805 WHR Whirlpool Corp 87.25 244,736.25 1.70 .00 1.97 .15 Total Consumer Discretionary 1.26 1,612,802.92 11.20 .00 .75 Consumer Staples 1,878 CHID Church & Dwight Co Inc 66.95 125,732.10 .87 .00 .84 1,539 CL Colgate- Palmolive Cc 85.26 131,215.14 .91 .00 2.49 5,198 CAG Conagra Foods Inc 25.07 130,313.86 .90 .00 3.19 1,801 DLM Del Monte Foods Co 14.60 26,294.60 .18 .00 1.37 3,697 DPS Dr Pepper Snapple Group 35.17 130,023.49 .90 554.55 1.71 1,577 GIS General Mills Inc 70.79 111,635.83 .77 .00 2.77 1,891 KMB Kimberly -Clark Corp 62.88 118,906.08 .83 1,248.06 4.20 812 NUS Nu Skin Enterprises Inc 29.10 23,629.20 .16 .00 1.72 1,876 PEP Pepsico Inc 66.16 124,116.16 .86 .00 2.72 4,446 PM Philip Morris International 52.16 231,903.36 1.61 2,578.68 4.45 9,048 SLE Sara Lee Corp 13.93 126,038.64 .87 .00 3.16 2,213 WMT Wal -Mart Stores Inc 55.60 123,042.80 .85 669.43 2.18 Total Consumer Staples 1,402,851.26 9.74 5,050.72 2.84 Energy 1,855 APA Apache Corp 101.50 188,282.50 1.31 .00 .59 638 ATW Atwood Oceanics Inc 34.63 22,093.94 .15 .00 .00 4,149 CHK Chesapeake Energy Corp 23.64 98,082.36 .68 311.17 1.27 1,457 CVX Chevron Corp 75.83 110,484.31 .77 .00 3.59 2,218 COP Conocophillips 51.17 113,495.06 .79 .00 4.30 1,875 XOM Exxon Mobil Corp 66.98 125,587.50 .87 .00 2.51 278 LUFK Lufkin Industries 79.15 22,003.70 .15 .00 1.26 3,653 MRO Marathon Oil Corp 31.64 115,580.92 .80 .00 3.03 2,428 NOV National Oilwell Varco Inc 40.58 98,528.24 .68 .00 .99 5,082 NE Noble Corp 41.82 212,529.24 1.48 .00 .45 1,401 OXY Occidental Petroleum Corp 84.54 118,440.54 .82 462.33 1.56 621 SM St Mary Land & Exploration 34.81 21,617.01 .15 .00 .29 8,786 WMB Williams Cos Inc 23.10 202,956.60 1.41 .00 1.90 • r.;. Dana Investment Advisors, Inc. PORTFOLIO HOLDINGS Portfolio: 715comp - City of Palm Beach Gardens Firefighters' As of 03/31/2010 Retirement System - Comp Shares/ PAR Identifier Description Price Market Value Pct. Assets Accruals Cur. Owed Yield Health Care Total Energy 1,449,681.92 10.06 773.50 1.78 Financials ABT Abbott Laboratories 52.68 215,829.96 1.50 .00 3.34 5,024 AFL Aflac Inc 54.29 272,752.96 1.89 .00 2.06 2,263 AXP American Express Co 41.26 93,371.38 .65 407.34 1.75 3,136 AMP Ameriprise Financial Inc 45.36 142,248.96 .99 .00 1.50 1,732 AFSI Amtrust Financial Services 13.95 24,161.40 .17 121.24 2.01 7,283 NLY Annaly Capital Management In 17.18 125,121.94 .87 4,733.95 15.13 7,821 BAC Bank Of America Corp 17.85 139,604.85 .97 .00 .22 735 OZRK Bank Of The Ozarks Inc 35.19 25,864.65 .18 .00 1.59 2,688 CB Chubb Corp 51.85 139,372.80 .97 994.56 2.85 708 CHCO City Holding Company 34.29 24,277.32 .17 .00 3.97 1,084 CBU Community Bank System Inc 22.78 24,693.52 .17 238.48 3.86 604 EPR Entertainment Properties Trust 41.13 24,842.52 .17 392.60 6.32 1,282 FFBC First Financial Bancorp 17.78 22,793.96 .16 128.20 2.25 1,643 FPO First Potomac Realty Trust 15.03 24,694.29 .17 .00 5.32 918 FPIC FPIC Insurance Group Inc 27.11 24,886.98 .17 .00 .00 816 GS Goldman Sachs Group Inc 170.63 139,234.08 .97 .00 .82 912 GLRE Greenlight Capital Re Ltd Cl A 26.68 24,332.16 .17 .00 .00 6,165 HCBK Hudson City Bancorp Inc 14.17 87,358.05 .61 .00 4.23 5,097 JPM JP Morgan Chase 44.75 228,090.75 1.58 .00 .45 2,888 MIG Meadowbrook Insurance Group In 7.90 22,815.20 .16 86.64 1.52 1,060 OHI Omega Healthcare Investors Inc 19.49 20,659.40 .14 .00 6.57 2,157 PNNT PennantPark Investment Corp 10.37 22,368.09 .16 560.82 10.03 2,186 PNC PNC Financial Services Group I 59.70 130,504.20 .91 .00 .67 553 SFG Stancorp Financial Group 47.63 26,339.39 .18 .00 1.68 2,447 STT State Street Corp 45.14 110,457.58 .77 24.47 .09 6,302 UNM Unum Group 24.77 156,100.54 1.08 .00 1.33 4,992 USB US Bancorp 25.88 129,192.96 .90 249.60 .77 4,557 WFC Wells Fargo & Co 31.12 141,813.84 .98 .00 .64 Total Financials 2,347,953.77 16.30 7,937.90 2.30 Health Care 4,097 ABT Abbott Laboratories 52.68 215,829.96 1.50 .00 3.34 1,142 AMMD American Medical Systems Inc 18.58 21,218.36 .15 .00 .00 7,770 ABC AmerisourceBergen Corp 28.92 224,708.40 1.56 .00 1.11 828 AMSG Amsurg Corp 21.59 17,876.52 .12 .00 .00 967 CMN Cantel Medical Corp 19.85 19,194.95 .13 .00 .50 530 CHSI Catalyst Health Solutions Inc 41.38 21,931.40 .15 .00 .00 1,653 DVA Davita Inc 63.40 104,800.20 .73 .00 .00 1,285 HGR Hanger Orthopedic Group Inc 18.18 23,361.30 .16 .00 .00 2,467 HUM Humana Inc 46.77 115,381.59 .80 .00 .00 1,101 BLUD Immucor Inc 22.39 24,651.39 .17 .00 .00 3,035 JNJ Johnson & Johnson 65.20 197,882.00 1.37 .00 3.01 1,292 LH Laboratory Crp Of Amer Hldgs 75.71 97,817.32 .68 .00 .00 859 MATK Martek Biosciences Corp 22.51 19,336.09 .13 .00 .00 1,529 MHS Medco Health Solutions Inc 64.56 98,712.24 .69 .00 .00 863 MRX Medicis Pharmaceutical Corp 25.16 21,713.08 15 51.78 .95 4,700 MYL Mylan Laboratories Inc 22.71 106,737.00 .74 .00 .00 1,807 NVS Novartis AG (ADS) 54.10 97,758.70 .68 3,044.94 3.11 958 PRXL Parexel International Corp 23.31 22,330.98 .16 .00 .00 2,068 PRGO Perrigo Co 58.72 121,432.96 .84 .00 .43 5,285 PFE Pfizer Inc 17.15 90,637.75 .63 .00 4.20 559 SIRO Sirona Dental Systems Inc 38.03 21,258.77 .15 .00 .00 1,764 TEVA Teva Pharmaceutical -SP ADR 63.08 111,273.12 .77 .00 .85 • r.;. Dana Investment Advisors, Inc. PORTFOLIO HOLDINGS Portfolio: 715comp - City of Palm Beach Gardens Firefighters' As of 03/31/2010 Retirement System - Comp Shares/ PAR Identifier Description Price Market Value Pct. Assets Accruals Cur. Owed Yield Information Technology Total Health Care 1,795,844.08 12.47 3,096.72 1.35 Industrials Accenture PLC 41.95 129,457.70 .90 .00 1.79 3,665 1,572 MMM 3M Co 83.57 131,372.04 .91 .00 2.51 463 AOS A.O. Smith 52.57 24,339.91 .17 .00 1.48 1,001 ATU Actuant Corp -CI A 19.55 19,569.55 .14 .00 .20 2,040 CBE Cooper Industries Inc 47.94 97,797.60 .68 550.80 2.25 2,392 DOV Dover Corporation 46.75 111,826.00 .78 .00 2.22 1,316 DDMX Dynamex Inc 17.20 22,635.20 .16 .00 .00 736 EME Emcor Group Inc 24.63 18,127.68 .13 .00 .00 971 ENS EnerSys Inc 24.66 23,944.86 .17 .00 .00 7,654 GE General Electric Co 18.20 139,302.80 .97 765.40 2.20 2,301 ITW Illinois Tool Works Inc. 47.36 108,975.36 .76 713.31 2.62 886 INSU Insituform Technologies Inc (C 26.61 23,576.46 .16 .00 .00 3,224 NOC Northrop Grumman Corp 65.57 211,397.68 1.47 .00 2.62 924 PCP Precision Castparts Corp 126.71 117,080.04 .81 .00 .09 862 SXE Stanley Inc 28.29 24,385.98 .17 .00 .00 1,039 TGH Textainer Group Holdings Ltd 21.55 22,390.45 .16 .00 4.27 557 TNB Thomas and Betts Corp 39.24 21,856.68 .15 .00 .00 367 TGI Triumph Group Inc 70.09 25,723.03 .18 .00 .23 3,382 TYC Tyco International Ltd 38.25 129,361.50 .90 .00 2.20 3,076 UNP Union Pacific Corp 73.30 225,470.80 1.57 830.52 1.47 1,576 UTX United Technologies Corp 73.61 116,009.36 .81 .00 2.31 TTEC Teletech Holdings Inc 17.08 Total Industrials 1,615,142.98 11.21 2,860.03 1.85 Information Technology 3,086 ACN Accenture PLC 41.95 129,457.70 .90 .00 1.79 3,665 ADBE Adobe Systems Inc 35.37 129,631.05 .90 .00 .00 737 AAPL Apple Inc 235.00 173,195.00 1.20 .00 .00 653 ATHR Atheros Communications 38.71 25,277.63 .18 .00 .00 5,585 CSCO Cisco Systems Inc 26.03 145,377.55 1.01 .00 .00 5,051 EBAY Ebay Inc 26.97 136,212.84 .95 .00 .00 7,520 EMC EMC Corp 18.04 135,660.80 .94 .00 .00 251 GOOG Google Inc -CI A 567.12 142,347.12 .99 .00 .00 4,709 HPQ Hewlett- Packard Co 53.15 250,283.35 1.74 376.72 .60 1,823 IBM International Business Machine 128.25 233,799.75 1.62 .00 1.72 505 MANT Mantech International Corp -A 48.83 24,659.15 .17 .00 .00 4,371 MCHP Microchip Technology Inc 28.16 123,087.36 .85 .00 4.84 7,703 MSCC Microsemi Corp 17.34 133,570.02 .93 .00 .00 4,960 MSFT Microsoft Corp 29.29 145,266.00 1.01 .00 1.78 1,652 OPNT OPNET Technologies Inc 16.12 26,630.24 .18 .00 2.23 5,253 ORCL Oracle Corp 25.71 135,054.63 .94 .00 .78 824 OSIS OSI Systems Inc 28.08 23,137.92 .16 .00 .00 1,492 PMTC Parametric Technology Corp 18.05 26,930.60 .19 .00 .00 668 PLXS Plexus Corp 36.03 24,068.04 .17 .00 .00 1,844 SWKS Skyworks Solutions Inc 15.60 28,766.40 .20 .00 .00 773 SYNA Synaptics Inc 27.61 21,342.53 .15 .00 .00 1,156 TTEC Teletech Holdings Inc 17.08 19,744.48 .14 .00 .00 705 TLVT Telvent GIT SA 28.76 20,275.80 .14 .00 1.70 8,533 TXN Texas Instruments Inc 24.47 208,802.51 1.45 .00 1.96 5,010 XLNX Xilinx Inc 25.50 127,755.00 .89 .00 2.51 Total Information Technology 2,590,333.47 17.98 376.72 .99 Materials 949 SHLM A. Schulman Inc 24.47 23,222.03 .16 .00 2.45 303 CMP Compass Minerals Intl Inc 80.23 24,309.69 .17 .00 1.94 Dana Investment Advisors, Inc.._ PORTFOLIO HOLDINGS Portfolio: 715comp - City of Palm Beach Gardens Firefighters' As of 03/31/2010 Retirement System - Comp Shares/ PAR Identifier Description Price Market Value Pct. Assets Accruals Cur. Owed Yield 1,975 DD Du Pont (E.I.) De Nemours 37.24 73,549.00 .51 .00 4.40 1,338 FMC FMC Corp 60.54 81,002.52 .56 167.25 .83 2,183 FCX Freeport- Mcmoran Copper 83.54 182,367.82 1.27 .00 .72 .12 KOP Koppers Holdings Inc 28.32 .00 .00 138.16 .00 2,134 LZ Lubrizol Corp 91.72 195,730.48 1.36 .00 1.35 1,535 SOA Solutia Inc 16.11 24,728.85 .17 .00 .00 Utilities Total Materials 604,910.39 4.20 305.41 1.47 Telecommunication Services 3,709 T AT &T Inc 25.84 95,840.56 .67 .00 6.50 2,327 BCE BCE Inc 29.35 68,297.45 .47 1,012.04 5.24 919 CNSL Consolidated Communications Ho 18.96 17,424.24 .12 .00 8.18 2,220 NIHD Nil Holdings Inc 41.68 92,529.60 .64 .00 .00 2,573 VZ Verizon Communications Inc 31.02 79,814.46 .55 .00 6.13 Total Telecommunication Services 353,906.31 2.46 1,012.04 4.56 Utilities 2,814 AEP American Electric Power Co 34.18 96,182.52 .67 .00 4.80 953 AVA Avista Corp 20.71 19,736.63 .14 .00 4.83 7,321 CNP Centerpoint Energy Inc 1436 105,129.56 .73 .00 5.43 3,894 NU Northeast Utilities 27.64 107,63016 .75 .00 3.71 2,357 OKE Oneok Inc 45.65 107,597.05 .75 .00 3.86 1,055 SIRE Sempra Energy 49.90 52,644.50 .37 411.45 3.13 812 UIL UIL Holdings Corp 27.50 22,330.00 .16 350.78 6.28 Total Utilities 511,250.42 3.55 762.23 4.39 Total Domestic Equity Strategy 14,284,677.52 99.16 22,175.27 1.81 Total Stocks 14,284,677.52 99.16 22,175.27 1.81 Total Portfolio 14,405,806.39 Interest Receivable 0.00 Paydown Receivable 0.00 Accruals .00 Dividends Accrued 22,175.27 Total Portfolio with Accruals & Receivables 14,427,981.66 The market prices shown on these pages represent the last reported sale on the stated report date as to listed securities or the bid price in the case of over -the- counter quotations. Prices on bonds and some other investments are based on round lot price quotations and are for evaluation purposes only and may not represent actual market values. Bonds sold on an odd lot basis (less than $> million) may have a dollar price lower than the round lot quote. Where no regular market exists, prices shown are estimates by sources considered reliable by Dana Investment Advisors. While the prices are obtained from sources we consider reliable, we cannot guarantee them. Dana Investment Advisors is not a custodian. Clients should be receiving detailed statements from their custodian at least quarterly. While Dana In vestment Advisors regularly reconciles to custodian information, we encourage clients to review their custodian statement(s). Palm Beach Gardens Firefighters' Retirement System Broker Name Shares Comm Rate Net Amount Commission Capital Institutional Services 88,192 0.0153 2,985,275.89 1346.18 Insti net 66,513 0.0151 1,894,573.80 1001.19 Weeden 30,756 0.0156 990,239.37 480.17 City of Palm Beach Gardens Firefighters' Pension Trust Fund Quarterly Review 1 st Quarter 2010 THE BOGDAHN GROUP [�(>1 f):� I IN(. Rll �; I'. < <> \1 simplifj,inK your investment rand fidticiary derisinnns 1St Quarter 2010 Market Environment [III BOGDAHN The Market Environment Major Market Index Performance Period Ended: March 31, 2010 ■ Despite getting off to a rough start in January, the domestic equity markets posted strong results for the 1St quarter of 2010. January's weakness was largely a result of the domestic political rhetoric associated with discussions surrounding increased banking regulations as well as the potential geopolitical consequences of Greece's troubles on the global economy. As the quarter wore on investors began to view the domestic economy's recovery in a more positive light, which drove market returns higher. The domestic equity benchmark performance for both the quarter and the trailing one -year period was led by the Russell 2000 ( +8.7 %) and Russell MidCap ( +8.9 %) indices. ■ International markets were also positive for the 1St quarter of 2010. However, due to the strength of the U.S. dollar (USD), the USD returns of each of the foreign benchmarks trailed the respective local currency results for the quarter. In the trailing one -year period, the international markets showed substantial strength, particularly emerging markets, which returned 81.6% for the year. ■ The Barclays Aggregate index posted a solid return of +1.8% for the quarter. Unlike the prior several quarters, which were dominated by the performance of credit issues, the quarter's relatively stable rate environment meant that each segment of the bond index was a positive contributor to broad benchmark's total return. However, the outperformance of credit issues is very evident in the one -year results where the Barclays Aggregate index performance of +7.7% was dominated by the Corporate Investment Grade index return of +23.8% and held back by the -0.1 % return of the Government index. Quarter Performance MSCI ACWxUS 1.7 MSCI EAFE o.s MSCI Emerg Mkts 2.6% S &P 500 6.a% Russell 3000 5.9% Russell 1000 6.7 Russell MidCap 8.7 Russell 2000 8.9% Barclays US Agg Barclays US Govt Barclays MBS Barclays Corp IG t.t % 1.6 2.J 3- Month T -Bill 1 0.0% 0.0% 2.0% 4.0% One Year Performance MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts S &P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg 7.7% Barclays US Govt -0.1 % Barclays MBS 6.2% Barclays Corp IG ".a % 3 -Month T -Bill 0.1 6.0% 8.0% 10.0% 61.7% 66.2% 61.6% a9.a % 52.4% 61.6% 67.7% 62.8 -10.0% 10.0% 30.0% 50.0% 70.0% 90.0% � Source: Barclays Capital, MSCI Capital Markets, Russell Investments 2 � TilE BOGDAHN GROUP The Market Environment Domestic Equity Style Index Performance Period Ended: March 31, 2010 a The 1st quarter's value outperformance represents a mirror image of the 4th quarter's results for growth. While last quarter's growth outperformance was led by strength in information technology and weakness in financials, this quarter's value outperformance was a result of strength in financials and relative weakness in information technology. This quarter's outperformance by value indices is evident across the entire capitalization spectrum where the financial sector represents a weight of more than 20% of each of the Russell value indices. ■ The absolute performance differential between value and growth index results for the 1st quarter were relatively narrow with the 240 basis point return differential between small cap style indices represented the widest performance band. While the return disparity between the various style -based benchmarks is broader over the one -year period, absolute results for all of the equity benchmarks were strong. Much like the 1st quarter of 2010, annual benchmark differentials between growth and value indices were driven by a strong recovery in financial issues over the period. ■ Style -based results over the one -year period were once again heavily impacted by the end -point sensitivity of the four quarter calculation. This sensitivity is quantified by the elimination of the 1st quarter of 2009's performance from the the calculation (Russell 1000: - 10.5 %) and the inclusion of the 1 st quarter of 2010's performance (Russell 1000: +5.7 %). 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 20001ndex 2000 Growth Quarter Performance 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 20001ndex 2000 Growth One Year Performance 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Source: Russell Investments THE 3 BOGDAHN The Market Environment GICS Sector Performance & (Quarter -End Sector Weight) Period Ended: March 31, 2010 ■ °TR- Russell 1000 O 1 -Year ■ Large cap stock pertormance was largely positive across the various Global Industry Classification Standard (GICS) sectors Energy (10.7%) for the quarter with the exception of the low- weighted Materials (4.0%) telecommunication services and utilities sectors, which were mildly negative. Sector positioning will most likely play a large Industrials (10.80/6) role in a portfolio's performance for the quarter, with only four Consumer Disc (10.7%) of the index's ten sectors outpacing +5.7% return of the Consumer Staples (10.7%) Russell 1000 index. The quarter's performance was led by industrial, consumer discretionary and financial issues, each Health Care (12.3%) of which posted returns in excess of +10.0 %. Financials (15.6 %) ■ Reversing last quarter's pullback where it represented the Info Technology (18.7 %) weakest sector in the index, the financial sector of the Russell Telecom Services (2.8%) 1000 posted a strong +11.4% return for the quarter. Utilities(3.6 %) Industrials, which factor significantly in both the value and growth benchmarks ( >10% weight) was the Russell 1000 index's stron act sector for the uarter with a return of 1 32.7% a.z % 62.1 12.4% 73.6% 73.0 s.o % 36.4% 4.3 36.6% 11.4% 78.6% 2.0 69.0% -3.6% 16.7% 23.6% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% g q . °TR +12.4%. O 1 -Year ■ For the trailing one -year period, each of the ten GICS sectors Energy (5.0%) posted double -digit performance for the Russell 1000 index. Materials (4.6%) In fact, five of the ten sectors returned more than 50.0% for Industrials (15.2%) the period. Consumer Disc (15.0 %) ■ Small cap stock performance was positive across nine of the Consumer Staples (3.1%) ten GICS sectors for the quarter. In fact, with the exception of industrials, which was the strongest sector of the large cap Health Care (14.3%) index, the small cap sector performance exceeded each Financials (20.9 %) respective large cap sector result for the quarter. Info Technology (18.0%) ■ The one -year results for the Russell 2000 index GICS sectors Telecom Services (0.9 %) were also impressive with the materials and consumer Utilities (3.0%) discretionary sectors posting returns in excess of 100 %. Russell 200(j 3.3'/, 83.0 6.9 % 104.0% 6.0 % 68.0% 17.9% 100.1 7.7% 48.7 8.1 � 49.3% 11A% 47.2% 6.6% 72.7 -2.8 28.3% 2.6% 24.6% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% ��Source: Thompson Financial THE ` GROUP The Market Environment Quality Rankings* Breakdown by Weight and Quarterly Performance Period Ended: March 31, 2010 ■ Within the Russell 1000 index, the performance of each of the quality segments was spread over a 300 basis point range during the 1St quarter. "B" quality rated companies, which make up 6.5% of the index, posted the strongest quality performance for the quarter with a return of +7.5 %. "A-" quality rated companies, which make up a larger 14.0% of the index, posted the quarter's weakest quality performance with a return of +4.5 %. ■ With nearly 30% of the small cap Russell 2000 index being classified as "not rated ", drawing sweeping conclusions from the quality data associated with the small cap index can often be misleading. However, since the +8.2% return by these "non- rated" companies is similar to the +8.8% posted by the index, it is reasonable to draw conclusions for the index based on the 1St quarter's quality data. With the exception of the outlying performance posted by the low- weighted "A-" and "N /A" companies, the spectrum of performance for the various quality ratings of the Russell 2000 index was a narrow 210 basis points. Russell 000 Quality Breakdown A+ 9.7% 5.3% A 11.7% 7.4% A- 14.0% 4.5% B+ 17.7% 5.7% B 6.5% 7.5% B- 27.7% 5.2% C 2.2% 7.1% D 0.0% 0.0% N/A 0.0% 0.0% Not Rated Russell err Index 10.5% 100.0% 5.6% 8.2% Russell rrr Quality 3.0% 9.4% A+ A 4.9% 7.7% A- 0.5% 3.0% B+ 17.2% 9.2% B 20.3% 9.3% B- 11.8% 8.1% c 11.9% 9.8% D 0.2% 9.5% N/A 0.8% 19.8% Not Rated 2000 Russell 29.4% r. 8.2% Quality Rankings Table Highest I High I Above Average I Average I Below Average I Lower I Lowest I In Reorganization 'Standard and Poor's rankings are generated by a computerized system and are based on per -share earnings and dividend records of the most recent 10 years. - October 2005 report �� T►iF. Source: Thompson Financial 5 OGDAHN ( R L ` %1TllT TT The Market Environment International and Regional Market Index Performance (# Countries) Period Ended: March 31, 2010 •QTR(USD) Quarter Performance o QTR (Local) ■ f th rt International developed market performance or a qua er was led by the performance in the Pacific region, which AC World x US (44) posted a return of +6.3% in U.S. Dollars (USD). Within the WORLD xUS(22) Pacific region, Japan was the standout country with a return of +8.3% for quarter in USD. Japan's strong performance was EAFE (21) enough to propel it past the United Kingdom as the largest Europe (16) representative country in international benchmarks. Another phenomenon visible in the performance of international Pacific (5) developed markets during the quarter is the continued Emerging Mkt (22) strength of the USD. However, unlike the 4th quarter where both the Europe and Pacific regions of the index showed EM Europe (5) weakness against the USD, during the 1St quarter, Europe EM Asia (8) was the sole source of weakness with a return of +3.6% in local currency vs. -1.7% In USD. EM Latin Amer (7) Emerging markets continued their solid performance during the 1St quarter with a return of +2.5% in USD. Much like developed markets, USD returns were muted as the result of a strengthening dollar. However, in contrast to the developed markets where Europe represented a drag on the broader benchmarks, Europe's emerging market countries, which posted a USD return of +6.1%, were the primary source of performance in the boarder emerging market benchmark. Despite the strength of the USD over the last two quarters, the one -year results of both the broad and regional benchmarks show the substantial weakness of the USD over the last year. In contrast to the domestic indices which were driven by performance in the industrial, financial and consumer discretionary sectors, the GICS sector attribution of both the EAFE and ACWIxUS benchmarks for the 1St quarter illustrate the largest strength coming from exposure to the information technology sector. Source: MSC/ Capital Markets -5.0% 0.0% 5.0% 10.0% 15.0% 0 1 - Year (USD) 01 -Year (Local) AC World x US (44) WORLD x US (22) EAFE (21) Europe (16) Pacific (5) Emerging Mkt (22) EM Europe (5) EM Asia (8) EM Latin Amer (7) One -Year Performance - 61_7% J 47.5 ss.s 44.a% 55.2 as a% 57.2% 50.5% 51.5% 36.6% - 81.6% 59.4% 111 85.9% _ 73.8% 58.5% 97.8% 60.2 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% THE 6 �7w.� BOGDAHN GROUP The Market Environment U.S. Dollar International Index Attribution & Country Detail Period Ended: March 31, 2010 MSCI-EAFE Energy Ending Weight 8.0% 1st Qtr Return -3.5% 1 -Year Return 38.7% Materials 10.5% 2.4% 84.0% Industrials 11.8% 5.8% 63.6% Consumer Discretionary 9.9% 3.1% 54.6% Consumer Staples 10.0% 2.2% 55.2% Health Care 8.1% -1.2% 37.1% Financials 25.3% -0.7% 71.7% Information Technology 5.3% 11.9% 52.1% Telecommunication Services 5.5% -4.3% 32.0% Utilities Total 5.6% 11 1' -4.0% 1 27.4% Energy 10.8% Qtr Return -2.1% 1-Y ear Return 50.7% Materials 12.2% 3.2% 84.7% Industrials 10.2% 5.8% 65.5% Consumer Discretionary 8.6% 3.0% 61.6% Consumer Staples 8.5% 2.4% 58.6% Health Care 6.2% 0.0% 38.7% Financials 25.9% 1.2% 79.8% Information Technology 7.0% 6.5% 64.0% Telecommunication Services 6.0% -1.9% 35.5% Utilities 4.8% -2.9% 32.5% Total 11 1' 1.9% 7.7% Source: MSCI Capital Markets, & FranklinlTempleton Country Japan Ending Weight 22.2% Ending Weight 15.5% Return 8.3% Return 38.0% United Kingdom 21.0% 14.7% -0.6% 59.6% France 10.6% 7.4% -3.9% 52.4% Australia 8.7% 6.0% 4.2% 87.1% Switzerland 7.9% 5.5% 4.4% 55.5% Germany 7.9% 5.5% -2.6% 53.1% Spain 3.9% 2.7% - 15.2% 50.6% Italy 3.2% 2.3% -7.3% 49.4% Sweden 2.8% 1.9% 7.7% 90.6% Netherlands 2.6% 1.8% -1.0% 69.3% Hong Kong 2.4% 1.7% 2.4% 64.8% Singapore 1.5% 1.0% -1.3% 88.9% Finland 1.2% 0.9% 12.4% 62.2% Belgium 1.0% 0.7% -1.0% 64.1% Denmark 0.9% 0.7% 10.0% 69.5% Norway 0.7% 0.5% -6.4% 71.0% Greece 0.4% 0.3% -13.2% 24.5% Austria 0.3% 0.2% -1.2% 55.7% Portugal 0.3% 0.2% 10.3% 37.9% Ireland 0.3% 0.2% -0.2% 23.6% New Zealand Total EAFE Countries 0.1% 01 0.1% -3.7% 50.2% Canada Developed Total 1 7.6% 6.2% 72.9% China 4.0% -1.6% 5B.0% Brazil 3.7% -0.1% 103.0% Korea 2.9% 4.0% 79.1% Taiwan 2.4% -3.8% 60.1% India 1.7% 4.9% 115.9% South Africa 1.6% 4.6% 71.8% Russia 1.5% 6.8% 106.5% Mexico 1.0% 7.8% 96.3% Israel 0.7% 10.0% 60.9% Malaysia 0.6% 9.1% 71.1% Indonesia 0.5% 10.0% 147.6% Turkey 0.3% 4.0% 136.4% Thailand 0.3% 13.3% 111.3% Chile 0.3% 0.3% 64.8% Poland 0.3% 4.2% 116.7% Colombia 0.2% 10.4% 126.4% Hungary 0.1% 12.6% 181.0% Peru 1 0.1% 0.6% 62.5% Egypt 0.1% 11.9% 76.5% Phili fines 0.1% 5.2% 65.6% Czech Re ublic 0.1% 0.2% 51.2% Morocco Total Emerging Countries Total ACWIxUS Countries 0.0% 22.7% I 6.7% 2.6% 11.1% 81.6% Ti-w BOGDAHN The Market Environment Domestic Credit Sector & Broad Market Maturity Performance Period Ended: March 31, 2010 ■ While several quarters during 2009 were marked by substantial credit compression that benefited lower quality investments, the 1St quarter of 2010 represented a more stable environment. This stability is particularly evident in the narrower 280 basis point performance differential between AAA and <BBB rated debt. This is a substantial change from the last quarter where the return differential between AAA and <BBB rated debt was a much wider 680 basis points. Given the quarter's steady rate environment, the higher coupons associated with lower- quality debt as well as the higher yields offered on longer -term bonds were the primary drivers of total return performance. • The results of the bond market summarized in the one -year performance chart show what can only be characterized as an "extreme" performance band between the various bond index segments. The Government bond index, which did not benefit from 2009's credit compression, was at the low end of the performance band with a one -year return of -0.4 %. In contrast, high yield securities, which benefited from both strengthening credit market conditions and higher coupon rates, posted a return of +57.2% for the year. AAA AA A BBB <BBB Govt Mort 1 -3yr G /M /C 1 -Syr G /M /C 1 -10yr G /M /C 10 +yrG /M /C Quarter Performance 0.0% 2.0% 4.0% 6.0% 8.0% One Year Performance AAA 7.9% AA 15.7% A 22.3% BBB 32.9% <BBB Govt -0.4% Mort 6.z% 1 -3yr G /M /C 1 -5yr G /M /C 1- 10yrG /M /C 10 +yrG /M /C 4.7% 5.4% 6.6% ■ 10.0% 57.2% 10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% � Source: Merrill Lynch Index System 8 � THE BOGDAHN GROUP The Market Environment Market Rate & Yield Curve Comparison Period Ended: March 31, 2010 • During the quarter, the Fed reiterated that rates will remain 7.00 low for an extended period of time. While there is no shortage 2009 -2010 Market Rates Fed Funds Rate —TED Spread —3-Month Libor of opinion, many market observers feel that the Fed will not 6.00 — BAA/10yrSpread — 10yrTreasury 10yrTips raise rates before the end of the year due to muted growth, low inflationary pressures and high unemployment. While 5.00 several readings indicate that the domestic economy has largely stabilized, there are fewer indicators of the strong 4.00 demand or organic growth necessary to drive the economy forward without substantial government stimulus. The current 3.00 economic weakness is most evident in many small and mid sized companies, which still face tight credit conditions and 2.00 slow growth. 1.00 • Although there were a number of economic and geopolitical events during the quarter that could have derailed the 0.00 recovery in the credit markets, the various indicators reported Mar -09 Jun -09 Sep -09 Dec -09 in the "Market Rates" chart show a relatively stable rate environment during the quarter. I Treasury Yield curve ■ In contrast to prior quarters, the Treasury yield curve remained largely unchanged during the 1St quarter. For example, the quarter -end yield on the benchmark 10 -year Treasury (3.84 %) only changed by 1 basis point versus the year -end yield (3.85 %). As a result of this rate stability, the yield curve remains extremely steep with a 2- year /10 -year spread of 282 basis points. 6.00 5.00 4.00 3.00 2.00 1.00 0.00 —+- 3131/2009 19/30/2009 X12/31/2009 0 3/31/2010 0 Mar -10 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr �� Source: Mortgage -X. com , US Department of Treasury & St. Louis Fed FHF 9 l BOGDAHN The Market Environment What a Difference a Year Makes Period Ended: March 31, 2010 1 -Year Return as of 3/31/09 -46.2% -46.2 36.9 -38.1% - 38.2% 38.3 30.8% 37.5% 3.1 7.0 -5.2% 1.1 % -60.0% -40.0% -20.0% 0.0% 20.0% ■ It would be difficult to identify another consecutive two - year period with more diametrically opposed performance that the one -year periods ending 3/31/09 and 3/31/10. Over this period the average performance differential for the international and domestic equity benchmarks was 112.6% and 95.4% respectively. MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts ■ Fixed income, which typically offers a high degree of stability year- over -year, had an average performance spread over the two -year period of 10.2% for the benchmarks shown. This differential was largely due to the 26.0% return differential realized in investment grade debt over these two years. Source: Barclays Capital, MSCI Capital Markets, Russell Investments S &P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg Barclays US Govt Barclays MBS Barclays Corp IG 3 -Month T -Bill F1 Year Return as of 3131110 -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% ■ While it is easy to look in a rearview mirror to see the logic of diversifying a portfolio across several strategies and asset classes, it is important to remember that the greatest investment opportunity often exists when the risk appears to be the greatest. The best lesson for long -term investors to take from the performance disparity of last two -years is do their best not to anticipate or react to short-term market performance but rather to maintain focus on their long -term strategic plans. THE 10 ` BOGDAHN GROUP THE BOGDAHN GROUP City of Palm Beach Gardens Firefighters' Pension Trust Compliance Checklist as of 3/31/2010 1. The Total Plan return equaled or exceeded the 8.25% actuarial earnings assumption over the trailing three and five year periods. ✓ 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three year period. ✓ 3. The Total Plan return equaled or exceeded the total plan benchmark over the trailing five year period. ✓ 4. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three year and five year periods. ✓ 5 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 ✓ 1. Total domestic equity returns meet or exceed the benchmark over the trailing three year period. ✓ 2. Total domestic equity returns meet or exceed the benchmark over the trailing five year period. ✓ 3. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 4. The total equity allocation was less than 75% of the total plan assets at market. ✓ 5. The total equity allocation was less than 65% of the total plan assets at cost. ✓ 6. Total foreign equity was less than 10% of the total plan assets at cost. ✓ 1. Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. 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. 1. Manager outperformed the index over the trailing three year period. ✓ ✓ ✓ 2. Manager outperformed the index over the trailing five year period. ✓ ✓ ✓ 3. Manager ranked within the top 40th percentile over trailing three and five year periods. ✓ ✓ ✓ 4. Less than four consecutive quarters of under performance relative to the benchmark. ✓ ✓ ✓ 5. Three -year down- market capture ratio less than the index. ✓ ✓ ✓ 6. Standard deviation <= 150% of the index over the trailing three and five year periods. ✓ ✓ ✓ FA ✓ ✓ ✓ ✓ 'I'i1F. 12 ` BOGDAHN (; uni Tn Total Fund Portfolio March 31, 2010 Asset Allocation By Style as of Dec - 2009 N Asset Allocation By Style - Current Quarter December 31, 2009 : $28,596,870 Segments Domestic Equity International Equity Domestic Fixed Income Real Estate Cash Equivalent march 31, 2010 : $30,530,322 Market Value Allocation Segments Market Value Allocation ($) (%) ($) (%) 13,508,398 47.2 IN Domestic Equity 14,284,678 46.8 2,518,402 8.8 ■ International Equity 2,616,485 8.6 8,546,626 29.9 ■ Domestic Fixed Income 8,710,384 28.5 722,843 2.5 ■ Real Estate 716,187 2.3 3,300,601 11.5 ■ Cash Equivalent 4,202,589 13.8 THE 14 ! . BOGDAHN P GROUP December 31, 2009 : $28,596,870 ■ Dana Equity Portfolio ■ Dana Growth (Equity) ■ Davis,Hamilton,Jackson & Assoc. Fixed ■ Agincourt Capital Management ■ Receipt & Disbursement ❑ RBC Global (Voyageur) International Portfolio ❑ Manning & Napier Overseas (EXOSX) ❑ American Real Estate Fund Total Fund Portfolio March 31, 2010 March 31, 2010 : $30,530,322 Market Value Allocation Market Value Allocation ($) ( %) ($) ( %) 7,403,119 25.9 ■ Dana Equity Portfolio 7,909,157 25.9 6,230,819 21.8 ■ Dana Growth (Equity) 6,515,594 21.3 4,527,104 15.8 ■ Davis,Hamiltonjackson & Assoc. Fixed 4,618,022 15.1 4,185,916 14.6 ■ Agincourt Capital Management 4,274,642 14.0 2,358,402 8.2 ■ Receipt & Disbursement 3,199,878 10.5 1,904,009 6.7 ❑ RBC Global (Voyageur) International Portfolio 1,997,345 6.5 1,264,660 4.4 ■ Manning & Napier Overseas (EXOSX) 1,299,498 4.3 722,843 2.5 ■ American Real Estate Fund 716,187 2.3 THE 15 BOGDAHN ` GROUP Palm Beach Gardens Firefighters' Asset Allocation As of March 31, 2010 Asset Allocation History by Portfolio Dana Equity Portfolio 7,513.927 35.39 6,188,958 26.52 7,102,580 26.30 7,403,119 25.89 7.909.157 25.91 Dana Growth (Equity) - - 5,198,908 22.28 5,824,742 21.57 6,230,819 21.79 6,515,594 21.34 RBC Global (Voyageur) International Portfolio 1,417,647 6.68 1,652,460 7.08 1,915,140 7.09 1,904,009 6.66 1.997,345 6.54 Manning & Napier Overseas (EXOSX) - - 1,006,057 4.31 1,264,803 4.68 1,264,660 4.42 1,299,498 4.26 American Real Estate Fund 907,077 4.27 839,567 3.60 756,753 2.80 722,843 2.53 716,187 2.35 Agincourt Capital Management Fixed 3,422,759 16.12 3,999,862 17.14 4,160,859 15.41 4,185,916 14.64 4,274,642 14.00 Davis,Hamilton,Jackson & Assoc. Fixed 3,891,569 18.33 4,214,259 18.06 4,469,977 16.55 4,527,104 15.83 4.618.022 15.13 Receipt & Disbursement 4,080,557 19.22 233,951 1.00 1,514,481 5.61 2,358,402 8.25 3,199,878 10.48 Total Fund Portfolio 21,233,535 100.00 23,334,022 100.00 27,009,334 100.00 28,596,870 100.00 30,530,322 100.00 Historical Asset Allocation By Seement 100.0 80.0 60.0 0 .y 40.0 Z 20.0 0.0 9/09 10/09 11/09 12/09 1 /10 2/10 3/10 I homcstir I yuit\ International Equity Domestic Fixed Income ■ Real Estate Cash Equivalent THF: 16 l BOGDAHN GROUP Palm Beach Gardens Firefighters' Financial Reconciliation As of March 31, 2010 Financial Reconciliation Dana Equity Portfolio 7,403,1 19 22,703 - - - 22,703 - 38,330 467,709 7,909,157 Dana Growth (Equity) 6,230,819 - - - - - 20,441 264,334 6,515,594 RBC Global (Voyageur) International Portfolio 1,904,009 2,691 - - -2,691 - 91 93,245 1,997,345 Manning & Napier Overseas (EXOSX) 1,264,660 - - - - - - 34,838 1,299,498 American Real Estate Fund 722,843 - - - -1,840 - 6,949 - 11,765 716,187 Agincourt Capital Management 4,185,916 2,631 - - -2,631 - 50,048 38,678 4,274,642 Davis,Hamiltonjackson & Assoc. Fixed 4,527,104 2,830 - - -2,830 - 57,250 33,668 4,618,022 Receipt & Disbursement 2,358,402 - 30,855 1,028,468 - 119,774 - - 36,789 427 - 3,199,878 Total Fund Portfolio 28,596,870 - 1,028,468 - 119,774 - 32,695 - 36,789 173,537 920,706 30,530,322 Financial Reconciliation FNJD Dana Equity Portfolio 7,102,580 34,482 - - - 34,482 - 80,702 725,875 7,909,157 Dana Growth (Equity) 5,824,742 9,863 - - -9,863 - 42,497 648,354 6,515,594 RBC Global (Voyageur) International Portfolio 1,915,140 5,274 - - -5,274 - 108 82,097 1,997,345 Manning & Napier Overseas (EXOSX) 1,264,803 - - - - - 10,581 24,114 1,299,498 American Real Estate Fund 756,753 - - - -3,777 - 18,029 - 54,818 716,187 Agincourt Capital Management 4,160,859 5,204 - - -5,204 - 98,863 14,919 4,274,642 Davis,Hamiltonjackson & Assoc. Fixed 4,469,977 5,623 - - -5,623 - 112,264 35,780 4,618,022 Receipt & Disbursement 1,514,481 - 60,447 2,033,310 - 239,260 - - 48,684 479 - 3,199,878 Total Fund Portfolio 27,009,334 - 2,033,310 - 239,260 - 64,224 - 48,684 363,525 1,476,321 30,530,322 7%� THF 17 � BOGDAHN ` GROUP Palm Beach Gardens Firefighters' Comparative Performance As of March 31, 2010 Total Fund Portfolio (Net) 3.59 6.22 23.49 -1.45 3.55 3.54 05/01/1998 1 utal Fluid Policy 3.89 7.41 33.69 -1.17 3.26 3.63 Difference -0.30 -1.19 -10.20 -0.28 0.29 -0.09 Total Fund Portfolio (Gross) 3.70 (58) 6.45 (82) 23.99 (94) -0.97 (70) 4.08 (61) 4.13 N/A 05/01/1998 l'otal Fund Policy 3.89 (45) 7.41 (49) 33.69 (44) -1.17 (72) 3.26 (86) 3.63 N/A Difference -0.19 -0.96 -9.70 0.20 0.82 0.50 All Public Plans -Total Fund Median 3.82 7.38 32.71 -0.16 4.33 N/A Total Equity 5.47 10.02 42.49 N/A N/A - 0.48 07/31/2008 Total Equity Policy 5.19 10.82 52.93 N/A N/A -3.32 Difference 0.28 -0.80 -10.44 N/A N/A 2.84 Total Domestic Equity 5.80 (29) 11.58 (55) 42.17 (84) -2.91 (36) 4.09 (19) 5.96 (21) 07/01/2002 Russell 3000 5.94 (24) 12.19 (33) 52.44 (20) -3.99 (57) 2.21 (62) 4.41 (70) Difference -0.14 -0.61 -10.27 1.08 1.88 1.55 US Core /Large Cap Equity (SA +CF) Median 5.41 11.75 48.85 -3.74 2.56 4.94 Dana Core Equity 6.84 (9) 11.36 (62) 42.89 (82) -2.74 (34) 4.20 (17) 6.03 (20) 07/01/2002 S &P 500 5.39 (53) 11.75 (51) 49.77 (42) -4.17 (66) 1.92 (76) 4.22 (82) Difference 1.45 -0.39 -6.88 1.43 2.28 1.81 US Core /Large Cap Equity (SA +CF) Median 5.41 11.75 48.85 -3.74 2.56 4.94 Dana Growth Equity 4.57 (53) 11.86 (53) N/A N/A N/A 24.25 (86) 06/01/2009 Russell 1000 Growth Index 4.65 (51) 12.96 (30) 49.75 (33) -0.78 (45) 3.42 (54) 30.18 (30) Difference -0.08 -1.10 N/A N/A N/A -5.93 US Growth /Large Cap Equity (SA +CF) Median 4.66 12.04 47.06 -1.08 3.54 28.71 Total International Equity 4.05 (17) 3.68 (69) 44.69 (93) -6.30 (58) N/A 3.77 (36) 01/01/2006 MSCI EAFE Index 0.94 (67) 3.18 (74) 55.20 (55) -6.55 (61) 424 (62) 1.79 (57) Difference 3.11 0.50 -10.51 0.25 N/A 1.98 International Equity SA +CF +MF Median 1.62 5.43 56.56 -5.57 5.03 2.25 Returns for periods greater than 1 yr. are annualized. Returns are expressed as percentages Ti tt Total Fund Policy =55% Russell 3000,25% Barclays Intermediate Aggregate, 'total 10% MSCI EAFE, & 10% NCREIF BOGDAHN Equity Policy =85% Russell 3000. 15% MSCI EAFE 18 Fixed assets transferred from Dana to DHJ 5 -31 -2008, fixed performance in total plan. %+ GROUP Palm Beach Gardens Firefighters' Comparative Performance As of March 31, 2010 RBC Global (Voyageur) International Portfolio 4.90 (10) 4.29 (52) 40.89 (94) -6.84 (80) N/A 3.35 (49) 01/01/2006 MSCI EAFE Index 0.94 (65) 3.18 (60) 55.20 (43) -6.55 (74) 4.24 (77) 1.79 (76) Difference 3.96 1.11 -14.31 -0.29 N/A 1.56 International Active Value Equity (SA +CF) Median 1.92 4.57 53.54 -4.62 5.35 3.20 Manning & Napier Overseas (EXOSX) 2.75 (17) 2.74 (76) N/A N/A N/A 41.68 (18) 05/01/2009 MSCI EAFE Index 0.94 (66) 3.18 (7 -1) 55.20 (38) -6.55 (60) 4.24 (53) 37.40 15 Difference 1.81 -0.44 N/A N/A N/A 4.28 International Equity Multi -Cap Core Funds (MF) Median 1.26 4.18 53.34 -5.91 4.53 37.59 Total Fixed Income 2.06 (36) 3.03 (25) 11.09 (33) 6.73 (48) 5.74 (50) 5.32 (60) 06/01/2002 Barclays Capital Intermediate Aggregate 1.81 (56) 2.34 (62) 7.40 (76) 6.19 (69) 5.47 (70) 5.18 (74) Difference 0.25 0.69 3.69 0.54 0.27 0.14 US Intermediate Duration Fixed Income Accounts (SA) Median 1.85 2.51 9.39 6.65 5.74 5.45 Agincourt Capital Management 2.12 (50) 2.73 (49) 9.08 (69) N/A N/A 8.85 (42) 09/01/2008 Barclays Capital Aggregate 1.78 (78) 1.99 (79) 7.69 (84) 6.14 (69) 5.44 (71) 6.96 (83) Difference 0.34 0.74 1.39 N/A N/A 1.89 US Broad Market Core Fixed Income (SA +CF) Median 2.11 2.70 11.54 6.69 5.80 8.52 Davis,Hamilton,Jackson & Assoc. Fixed 2.01 (41) 3.31 (18) 12.97 (19) N/A N/A 8.50 (15) 06/01/2008 Barclays Capital Intermediate Aggregate 1.81 (56) 2.34 (62) 7.40 (76) 6.19 (69) 5.47 (70) 6.35 (72) Difference 0.20 0.97 5.57 N/A N/A 2.15 US Intermediate Duration Fixed Income Accounts (SA) Median 1.85 2.51 9.39 6.65 5.74 7.05 American Real Estate Fund -0.67 (79) -4.86 (79) -20.42 (64) -9.97 (41) N/A -6.18 N/A 08/01/2006 Real Estate Policv 0.81 (21) -2.70 (45) -17.96 (53) -10.75 (44) N \ Difference -1.48 -2.16 -2.46 0.78 N/A N/A US Private Real Estate -Open End (SA +CF) Median 0.00 -2.85 -16.90 -12.55 -0.18 N/A Returns for periods greater than 1 yr. are annualized. Returns are expressed as percentages THE Total Fund Policy =55% Russell 3000, 25% Barclays Intermediate Aggregate, 10% MSCI EAFE, & 10% NCREIF �� BOGDAHN Total Equity Policy--85% Russell 3000; 15% MSCI EAFE 19 Fixed assets transferred from Dana to DHJ 5 -31 -2008, fixed performance in total plan. ` GROUP Total Fund Portfolio (Net) Total Fund Police Difference Total Fund Portfolio (Gross) Total I,und Pohc_\ Difference All Public Plans -Total Fund Median Total Equity Total Fquit folic\ Difference Total Domestic Equity IZIISSCII 3000 Difference I IS Core /Large Cap Equity (SA +CF) Median Dana Equity Portfolio ,,&1' 500 Difference US Core /Large Cap Equity (SA +CF) Median Dana Growth (Equity) Russell 1000 Growth Index Difference US Growth /Large Cap Equity (SA +CF) Median Total International Equity MSCI I:AFF Index SA +CF +MF) Median Palm Beach Gardens Firefighters' Comparative Performance As of March 31, 2010 -0.46 -12.30 10.96 7.92 13.82 10.51 11.42 -1.86 - 14.02 I 'L 11, v_.' � 9.84 17.82 1.40 1.72 2.4 -1.24 4.59 0.67 -6.40 0.00 (67) -11.% (28) 11.67 (93) 8.65 (52) 1435 (27) 11.19 (51) 12.28 (82) -1.86 (85) - 14.02 (56) 13.39 (70) 9.16 (42) 9.23 (85) 9.84 (71) 17.82 (35) 1.86 2.06 -1.72 -0.51 5.12 1.35 -5.54 1.36 -13.64 14.43 8.74 12.54 11.19 16.48 -1.59 N/A N/A N/A N/A N/A N/A -4.90 N/A N/A N/A N/A N/A N A 3.31 N/A N/A N/A N/A N/A N/A -3.91 (25) -18.11 (23) 14.18 (84) 10.21 (64) 21.50 (9) 15.99 (27) 20.02 (84) -6.42 (49) -21.52 (55) 16.52 (53) 10.22 (63) 12.69 (73) 13.87 (59) 24.40 (43) 2.51 3.41 -2.34 -0.01 8.81 2.12 -4.38 -6.49 -21.22 16.61 10.80 14.34 14.22 23.99 -10.07 (92) -19.54 (34) 14.18 (84) 10.21 (64) 21.50 (9) 15.99 (27) 20.02 (84) -6.91 (60) -21.98 (65) 16.44 (58) 10.79 (51) 12.25 (80) 13.87 (59) 24.40 (43) -3.16 2.44 -2.26 -0.58 9.25 2.12 -4.38 -6.49 -21.22 16.61 10.80 14.34 14.22 23.99 N/A N/A N/A N/A N/A N/A N/A -1.85 (35) -20.88 (52) 19.35 (55) 6.04 (58) 11.60 (71) 7.51 (74) 25.92 (.1 N/A N/A N/A N/A N/A N/A N/A -3.11 -20.62 19.88 6.79 14.04 10.05 22.36 11.28 (25) 30.51 (45) 24.22 (71) N/A N/A N/A N/A 3.80 (51) - 30.13 (41) 25.38 (63) 19.65 (43) 26.32 (53) 22.52 (41) 26.54 ( 11) i 7.48 -0.38 -1.16 N/A N/A N/A N/A 4.05 -31.18 27.61 18.94 26.58 21.23 26.30 Returns for periods greater than 1 yr. are annualized. Returns are expressed as percentages Total Fund Policy =55% Russell 3000.25% Barclays Intermediate Aggregate, 10% MSCI EAFE, & 10% NOCREIF l B O GDAH N Total Equity Policy =85% Russell 3000, 15% MSCI EAFE Fixed Assets transferred from Dana to DHJ, 5 -31 -2008, fixed performance in total plan. GROUP Palm Beach Gardens Firefighters' Comparative Performance As of March 31, 2010 RBC Global (Voyageur) International Portfolio 7.72 (33) -29.87 (73) 24.22 (52) N/A Estate Policy N/A 3.18 (52) N/A N/A N/A N.A MSCI EAFE Index 3.80 (57) -30.13 (75) 25.38 (44) 19.65 (70) 26.32 (63) 2252 (79) 26.54 174) Difference 3.92 0.26 -1.16 N/A N/A N/A N/A International Active Value Equity (SA +CF) Median 4.88 -27.10 24.45 20.94 27.05 25.41 29.66 Manning & Napier Overseas (EXOSX) N/A N/A N/A N/A N/A N/A N/A MSCI EAFE Index 3.80 (42) -30.13 (48) 25.38 (60) 19.65 (31) 26.32 (37) 22.52 (13) 26.54 (27) Difference N/A N/A N/A N/A N/A N/A N/A International Equity Multi -Cap Core Funds (MF) Median 1.99 -30.54 26.51 18.00 25.25 18.99 23.02 Total Fixed Income 15.33 (9) 0.03 (86) 5.24 (74) 3.64 (83) 1.77 (77) 2.56 (73) 2.77 (99) Barclays Capital Intermediate Aggregate 9.69 (8O) 4.16 (36) 5.33 (66) 3.84 (59) 2.23 (41) 3.39 (27) 4.94 (66) Difference 5.64 -4.13 -0.09 -0.20 -0.46 -0.83 -2.17 US Intermediate Duration Fixed Income Accounts (SA) Median 11.41 3.29 5.47 3.90 2.07 2.88 5.52 Agincourt Capital Management 14.76 (21) N/A N/A N/A N/A N/A N/A Barclays Capital Aggregate 10.56 (81) 3.65 (34) 5.14 (53) 3.67 (75) 2.80 (80) 3.68 (59) 5.40 (66) Difference 4.20 N/A N/A N/A N/A N/A N/A US Broad Market Core Fixed Income (SA +CF) Median 12.47 2.58 5.16 3.86 3.14 3.78 5.78 Davis,Hamilton,Jackson & Assoc. Fixed 15.91 (7) N/A N/A N/A N/A N/A N/A Barclays Capital Intermediate Aggregate 9.69 (80) 4.16 (36) 5.33 (66) 3.84 (59) 2.23 (41) 3.39 (27) 4.94 (66) Difference 6.22 N/A N/A N/A N/A N/A N/A US Intermediate Duration Fixed Income Accounts (SA) Median 11.41 3.29 5.47 3.90 2.07 2.88 5.52 erican Real Estate Fund -32.96 (41) 4.98 (35) 16.31 (80) N/A N/A N/A N/A Estate Policy -35.19 (52) 3.18 (52) 18.21 (54) N/A N'A N.A N A Terence 2.23 1.80 -1.90 N/A N/A N/A N/A Private Real Estate -Oren End (SA +CF) Median -33.44 3.47 18.34 17.92 19.86 1250 9.60 Returns for periods greater than 1 yr. are annualized. Returns are expressed as percentages Total Fund Policy--55% Russell 3000, 25% Barclays Intermediate Aggregate, 10% MSCI EAFE, & 10% NCREIF B O GDA H N Total Equity Policy =85% Russell 3000.15% MSCI EAFE 21 Fixed Assets transferred from Dana to DHJ, 5 -31 -2008, fixed performance in total plan. GROUP Palm Beach Gardens Firefighters' Total Fund Portfolio March 31, 2010 Finincial Reconciliation October 1, 2009 To Ma t-ch 31. 1 Market Value ,set Capital Market Value As of Contributions Distributions Fees Expenses Income Aso( 9/30/1009 Transfers Apprec/ Deprec' 3/31/2010 Total Fund Portfolio 27,009 2,033 -239 -64 -49 364 1.476 ?O.g30 Financial Reconciliation Since hiception Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec%Deprec. As of 4/30/1998 3/31/2010 'I ocal Fund Portfolio 2.994 24.595 -5,081 -281 -198 I(,62 6.840 30,530 Peer (:coup :%tud. sis -A11 Public Plans -Total Fund Cum tt e 80.00 60.00 40.00 20.00 0.00 1 -20.00 -40.00 1 Oct -2009 Quarter To Mar -2010 ■ l'otal Fund Portfolio 3.70 (58) 6.45 (82) 9 Total Fund Policy 3.89 (45) 7.41 (49) �J r- 1 2 Year Years 23.99 (94) -0.81 (64) -0.97 (70) 33.69 (44) -1.57 (76) -1.17 (72) 3 4 S Years Years Years S175.0 $160.0 $145.0 S130.0 $115.0 $100.0 1.83 (69) 4.08 (61) 1.66 (73) 3.26 (86) $85.0 156.9 149.8 6/98 12/00 6/03 12/05 6/08 3/10 Median 3.82 7.38 32.71 -0.06 -0.16 2.45 4.33 -Total Fund Portfolio -Total Fund Policy I 1 I 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Total Fund Portfolio 2.65 (88) 10.13 (74) 5.76 (94) 4.00 (18) -10.57 (11) -6.32 (25) Total Fund Policy 3.39 (52) 11.40 02) 11.73 (32) -7.83 (92) -14.45 (78) -6.90 (34) All Public Plans -Total Fund Median 3.41 11.48 10.59 -5.74 -12.80 -7.65 �� zz THE `J BOGDAHN GROUP Palm Beach Gardens Firefighters' Total Fund Portfolio March 31, 2010 j 1 r Rollin, I nder /Over Performance - 5 Years 3 ) r Rolling Percentile Ranking - 5 bears .l l t 20.0 10.0 0 0.0 C i c -10.0 e e -20.0 F -20.0 7.50 5.00 2.50 0.00 E -2.50 � -s.00 a 25.00 ■ ■ ■ ■ ■ ■ ■ Tracking Up Market ■ ■ Alpha ■ Sharpe Beta Downside 50.00 ■ ■ ■ Ratio Risk Capture Capture Total Fund Portfolio 5.00 70.16 • �. •. MEN -0 ' I 0.71 c 75.00 000 100.00 100.00 0.00 • • -0 I ? 1.00 e Tracking Up Down Sharpe Downside Market Market Alpha IR Ratio Beta 100.00 - -- -r - -- - - r rJ 6/05 6/06 6/07 6108 6/09 3/10 -10.0 0.0 10.0 20.0 30.0 Total Fund Policy( %) -W Over Perfotnunce -ArJun -2005 ♦Mar -2010 -7.5o 0.00 5.00 10.00 15.00 20.00 25.00 Risk(Standard Dec ialion'% ) Return Standard Deviation ■ Total Fund Portfolio -0 97 10.81 • Total Fund Policy -1 17 14.91 - Median -0 16 14.00 Total Period -1-25 25- Median Median -75 75-95 Count Count Count Count ■ Total Fund Portfolio 10 0 (0 %) 14 (70 %) 6 (30 %) 0 (0 %) • Total Fund Policv 'I 0 (0 %) 0 (0 %) 16 (80 %) 4 (20 %) Peer Group Scattergram - 5 Years 8.00 6.00 e 4.00 ze Cz 2.00 0.00 0.00 5.00 1000 15.00 20.00 25.00 Risk (Standard Deviation %) Return Standard Deviation ■ Total Fund Portfolio 4.08 9.12 • Total Fund Policy 3.26 12.00 - Median 4.33 11.44 �� IIIF is BOGDAHN GROUP Tracking Up Market Down Market Alpha IX Sharpe Beta Downside Error Ratio Risk Capture Capture Total Fund Portfolio 5.00 70.16 73.04 -0.35 -0.07 -0 ' I 0.71 7.84 Total Fund Policy 000 100.00 100.00 0.00 N/A -0 I ? 1.00 10.80 Tracking Up Down Sharpe Downside Market Market Alpha IR Ratio Beta Risk Error Capture Capture Total Fund Portfolio 4 16 85.93 72.05 1.56 0.12 11 18 0.73 608 Total Fund Policy 0 00 100.00 100.00 0.00 N/A 009 1.00 8 17 �� IIIF is BOGDAHN GROUP Palm Beach Gardens Firefighters' Total Domestic Equity March 31, 2010 Market Value tier Capital Market Value As of Contributions Distributions Fees Expenses Income A rec./ De rec. As of 12/31/2009 Transfers PP P 3/31/2010 Total Domestic Equity 13.634 -23 59 732 14,425 Financial Reconciliation October 1, 2009 To March 31. 2010 Market Value Net Capital Market Value Contributions Distributions Fees Expenses Income Apprec./ Deprec. As of As of Transfers 9/30/2009 3/31/2010 Total Domestic Fgmh 12.927 44 -44 C? 1.374 14,425 Peer Group Analysis - US Core /Large Cap Equity (SA +CF) 80.00 60.00 40.00 11.75 48.85 -3.10 -174 1 Oct -2009 I e To Year 20.00 Mar -2010 m 11.58 (55) 42.17 (84) 0.00 12.19 (33) 52.44 (20) -20.00 t 11.75 48.85 -3.10 -174 1 Oct -2009 I Quarter To Year Mar -2010 ■ Total Domestic Equity 5.80 (29) 11.58 (55) 42.17 (84) * Domestic Equity Policy 5.94 (24) 12.19 (33) 52.44 (20) 2 3 Years Years -0.03 (II) -2.91 (36) -2.94 (48) -3.99 (57) 4 S Years Years 0.67 (37) 4.09 (19) -0.38 (68) 2.21 (62) I I b V U $ 160.0 $ 140.0 $ 120.0 $1000 $80.0 156.6 139.7 6/02 3/04 12/05 9/07 3/10 Median 5 41 11.75 48.85 -3.10 -174 -0.05 2.56 -Total Domestic Equity - Domestic Equity Policy Comparative t 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep-2008 Total Domestic Equity 5.47 (72) 13.52 (83) 12.24 (84) -7.61 (19) -18.37 (12) -7.13 (22) Domestic Equity Policy 5.90 (53) 16.31 (22) 16.82 (25) -10.80 (58) -22.78 (75) -8.73 (48) US Core /Large Cap Equity (SA+CF) Median 5.98 15.28 15.56 -10.44 -21.66 -8.96 1lIF. 24 BOGDAHN GROUP Palm Beach Gardens Firefighters' Total Domestic Equity March 31, 2010 450 Over 0.00 Performance 30.0- m 25.00 15.0 � � � � ■ � ■ ■ � L u 50.00 • • . e 75.00 E -15.0 Under C 0 Performance 100.00 A -30.0 6,05 6/06 6/07 6/08 6/09 3/10 F -30.0 5 n 0.0 15.0 30.0 45.0 Total Period 5-25 25- Median Median -75 75-95 Domestic Equity Policy (%) Count Count Count Count ■ Total Domestic Equity 20 10 (50 %) 10 (50 %) 0 (0 %) 0 (0 %) ;- Over Perfimvince -&- Iun -2_005 Mar -2010 0 Domestic Equity Policy 20 0 (0 %) 0 (0 %) 16 (80 %) 4 (20 %) Peer Group Scattergram - 3 Years Peer Group Scattergram - 5 1 ears 15.00 - 15.00 10.00 10.00 5.00 0.00 g� 5.00 ■ -5.00 -++ E 0.00 a` -to.00 -15.00 - - - , - -5.00 - 0.00 10.00 20.00 30 00 40 on 50.00 0.00 10.00 20.00 1000 40.00 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation ■ Total Domestic Equity -2.91 17.93 ■ Total Domestic Equity 4.09 14.76 * Domestic Equity Policy -3.99 22.13 0 Domestic Equity Policy 2.21 17.78 - Median -3.74 21.29 - Median 2.56 17.18 Tracking p Down Sharpe Downside g Market Market Alpha IR Ratio Beta Risk Error Capture Capture Total Domestic Equity 4.42 86.15 85.26 0.24 0.12 -0.18 0.85 13.98 Domestic Equity Policy 000 100.00 100.00 0.00 N/A -0.18 1.00 16.50 Historical Tracking Up Down Sharpe Downside Error Market Market Alpha I R Ratio Beta Risk Capture Capture Total Domestic Equity 96.53 88.34 1 99 038 0 -16 0 87 it 11 Domestic Equity Policy 0.00 100.00 100.00 0.00 N A 0.05 1 00 13 94 25 BOGDAHN GROUP Palm Beach Gardens Firefighters' Dana Equity Portfolio March 31, 2010 Financial Reconciliation I Quarter Marlkct N clue Capital Market Value let f Contributions Distributions Fees Expenses Income A rec./ De As of �� 12/31/2009 Transfers App rec./ 3/31/2010 Dana Equity Portfolio 7.403 _3 38 468 7,909 J.'jl,:jI,cj,jj 1jeconciliation October 1, 2009 To N1,11-ch 31, 2010 Market Value Net Capital Market Value Contributions Distributions Fccs Expenses Income Apprec./ Deprec. As of As of Transfers 9/30/2009 3/31/2010 Dana Equity Portfolio 7,103 34 -34 xl 726 7.909 'Peer Group Analysis - US Core /Large Cap Equity (SA +CF) jcumulati e Performance 80.00 60.00 40.00 e o: 20.00 0.00 -20.00 ■ Dana Equity Portfolio • Dana Equity Policy 7=7 1 1 Oct -2009 1 Quarter To Year Mar -2010 6.84 (9) 11.36 (62) 42.89 (82) 5.94 (24) 12.19 (33) 52.44 (20) 2 3 Years Years 0.23 (10) -2.74 (34) -2.94 (48) -3.99 (57) 4 S Years Years 0.79 (35) 4.20 (17) -0.38 (68) 2.21 (62) S160.0 $140.0 $1200 $100,0 $80.0 157.4 139.7 6/02 3/04 12105 9/07 3110 Median 5.41 11.75 48.85 -3.10 -3.74 -0.05 2.56 -Dana Equity Portfolio -Dana Equity Policy Comparative 1 1 1 1 I 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Dana Equity Portfolio 4.23 (91) 14.76 (64) 11.81 (86) -7.61 (19) -18.37 (12) -7.13 (22) Dana Equity Policy 5.90 (53) 16.31 (22) 16.82 (25) -10.80 (58) -22.78 (75) -8.73 (48) US Core/Large Cap Equity (SA+CF) Median 5.98 15.28 15.56 -10.44 -21.66 -8.96 26 Till BOGDAHN GROUP 45.0 30.0 15.0 e 0.0 a° -15.0 e -30.0 n Palm Beach Gardens Firefighters' Dana Equity Portfolio March 31, 2010 C -30.0 -15.0 0.0 15.0 30.0 45.0 T tal Period 9,25 25 -Med' Median-75 7S 7i-95 Dana Equity Policy( %) -W Over Perfomrance -& lun -2005 Mar -2010 Peer roup 15.00 10.00 5.00 0.00 E -5.00 y 9 -10.00 o eno tan un- . Count Count Count Count ■ Dana Equity Portfolio 20 10 (50 %) 10 (50 %) 0 (0 %) 0 (0 %) • Dana Equitv Policv 20 0 (0 %) 0 (0 %) 16 (80 %) 4 (20 %) 1500 10.00 e 5.00 E 0.00 a" -500 0 -15.00 & I 0.00 i t - t 0.00 10.00 1000 30 (10 40.00 50.00 0.00 10.00 a 25.00 ■ ■ ■ ■ ■ ■ 'Y,.) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation 50.00 -2.74 18.18 ■ Dana Equity Portfolio 4.20 14.92 • • • • • Dana Equity Policy • 22.13 e 75.00 0 • ,� • �' • -3.74 a" - Median 2.56 17.18 Tracking 100.00 r r T r Beta Downside 6/05 6/06 6/07 6/08 6/09 3/10 C -30.0 -15.0 0.0 15.0 30.0 45.0 T tal Period 9,25 25 -Med' Median-75 7S 7i-95 Dana Equity Policy( %) -W Over Perfomrance -& lun -2005 Mar -2010 Peer roup 15.00 10.00 5.00 0.00 E -5.00 y 9 -10.00 o eno tan un- . Count Count Count Count ■ Dana Equity Portfolio 20 10 (50 %) 10 (50 %) 0 (0 %) 0 (0 %) • Dana Equitv Policv 20 0 (0 %) 0 (0 %) 16 (80 %) 4 (20 %) 1500 10.00 e 5.00 E 0.00 a" -500 0 -15.00 & I I i t i t 0.00 10.00 1000 30 (10 40.00 50.00 0.00 10.00 20.00 30 00 40.00 Risk(Standal'd Deviation 'Y,.) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation ■ Dana Equity Portfolio -2.74 18.18 ■ Dana Equity Portfolio 4.20 14.92 • Dana Equity Policy -3.99 22.13 • Dana Equity Policy 2.21 17.78 Median -3.74 21.29 - Median 2.56 17.18 Tracking Up Market Down Market Alpha IR Sharpe Beta Downside Error Ratio Risk Capture Capture Dana Equity Portfolio 4.46 85.69 84.27 0.40 0.15 -0.17 0.85 13.92 Dana Equity Policy 0.00 100.00 100.00 0.00 N/A -0.18 1 00 1650 Historical Tracking Up Market Down Market Alpha IR Sharpe Beta Downside Error Capture Capture Ratio Risk Dana Equity Portfolio 3.92 96.20 87.44 2.09 041 0 16 0.86 11 07 Dana Equity Policy 0.00 100.00 100.00 0.00 N/A 0.05 1.00 12 94 TIII 27 BOGDAHN GROUP Palm Beach Gardens Firefighters' Dana Growth Equity March 31, 2010 Financial Reconciliation I Quarter Market �'alac Capital Market Value Tr nsfers As of As of Contributions Distributions Fees Expenses Income Apprecd Deprec. 3/31 12/31 /2009 Dana Growth Equity 6.231 20 264 h,516 I G Market Value Capital Market Value Net Contributions Distributions Fees Expenses Income As of As of Transfers Apprec./ Deprec. 3/31/2010 9/30/2009 Dana Growth Equity 5,825 10 - - -10 - 42 648 6.516 Peer crone Analysis -U S Growth /Large Ca I) Equity (S.% +(F) 101111tilative Performance tt 80.00 60.00 40.00- $120.0 a e d 20.00 �i 0,00 ® ®� 51100 -20.00 1 Oct -2009 1 2 3 4 5 Quarter To Year Years Years Years Years Mar -2010 ■ Dana Growth Equity 4.57 (53) 11.86 (53) N/A N/A N/A N/A N/A • Russell 1000 Growth Index 4.65 (51) 12.96 (30) 49.75 (33) -0.80 (39) -0.78 (45) 1.12 (44) 3.42 (54) $100.0 6/09 9/09 12/09 3/10 Median 4.66 1204 47.06 -1.77 -1.08 0.85 3.54 Dana Growth Equity - Russell 1000 Growth Index I 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep-2009 .tun -2009 Mar -2009 Dec -2008 Sep -2008 Dana Growth Equity 6.97 (53) 12.04 (82) N/A N/A N/A N/A Russell 1000 Growth Index 7.94 (29) 13.97 (54) 16.32 (34) 4.12 (44) -22.79 (55) -12.33 1481 US Growth/Large Cap Equity (SA +CF) Median 7.06 14.04 15.00 4.67 -22.53 -12.44 28 TF'IF. BOGDAHN GROUP �7o,N 29 BOGDAHN 1 GROUP Palm Beach Gardens Firefighters' Total International Equity March 31, 2010 Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec./ Deprec. As of 12/31120119 3/31/2010 Taal International Equity 1.109 128 3 -297 Fifianchil Reconcifi.ition October 1, 2009 To March 31, 2010 Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec./ Deprec. As of 9/30/2009 3/31/2010 1,viallntema0onal11gwty 3.180 5 - - -5 - II 106 3.297 150.0(1 -_ 100.00 50.00 E 0 i C 000 ® ® ®® -50.00 I I Oct -2009 1 2 3 4 .S Quarter To Vear Years Vears Years Vears Mar -2010 ■ Total International Equiq 4.05 (17) 3.68 (69) 44.69 (93) -7.37 (47) -6.30 (58) 0.72 (43) N/A * MSCI EAFE Index 0.94 (67) 3.18 (74) 55.20 (55) -8.62 (55) -6.55 (61) -0.38 (55) 4.24 (62) S1600 S1400 5120 0 51000 $80.0 $60.0 117,0 107.8 12/05 12/06 12/07 12/08 3/10 Median 1 62 543 56.56 -7.88 -5.57 -0.01 5.03 _Total International Equity -MSCI EAFE Index I 1 1 1 1 I Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Total International Equity -0.35 (94) 19.61 (42) 16.68 (98) -5.12 (22) -15.97 (11) -16.50 (11) MSCI EAFE Index 2.22 (68) 19.52 (44) 25.85 (50) -13.85 (70) -19.90 (34) 20.50 (39) International Equity (SA+CF +MF) Median 3.40 19.14 25.71 -11.67 -21.73 -21.68 so `THE BOGDAHN GROUP Palm Beach Gardens Firefighters' Total International Equity March 31, 2010 3 Vr Rolling Under/Over Performance 5.0 1 0.00 0.0 -5.0 '3 w -10.0 0 -15.0 e -20.0 o -20.0 F -15.0 -10.0 -5.0 0.0 5.0 MSCI EA FE Index( %) f Over Performance f Under Performance -*- Dec -2008 ♦ Mar -2010 30.00 15.00 0.00 e -15.00 -30.00 a -45.00 0.00 20.00 4000 (10 00 80.00 100.00 Risk (Standard I)eciation'Z. ) Return Standard DeNiation 25.00 m d 50.00 a 75.00 C 100.00 0 Total International Equity 0 MSCI EAFE Index • Y 6/05 6/06 6/07 Total Period 5-15 25- Median Count Count 6 1 (17 %) 3 (50 %) 20 0 (0 %) 6 (30 %) 6/08 6/09 3/10 Median -75 75A5 Count Count 2 (33 %) 0 (0 %) 14 (70 %) 0 (0 %) 40.00 30.00 20.00 10.00 E 0.00 tY -10.00 -20.00 0.00 10.00 20.00 30.00 40.00 50.00 Risk (Standard Deviation %) Return Standard Deviation 60.00 ■ Total International Equity -6.30 21 57 0 Total International Equity N/A N/A • MSCI EAFE Index -6.55 2702 • MSCI EAFE Index 4.24 22.36 - Median -5.57 27.99 - Median 5.03 23.32 Historical Tracking Up Market Down Market Alpha IR Sharpe Beta Downside Error Capture Capture Ratio Risk Total International Equity 10.19 75.89 80.87 -1.75 -0.08 -0.33 0.74 15.65 MSCI EAFF. Index 0.00 100.00 100.00 0.00 N/A -0.24 1.00 18.84 Historical Tracking I Market k�t Down Market Alpha IR Sharpe Beta Downside Error Ratio Risk Capture Capture Total International Equity N/A N/A N/A N/A N/A N/A N/A N/A MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.17 1.00 14.79 31 BOGDAHN l O GROUP Palm Beach Gardens Firefighters' RBC Global (Voyageur) International Portfolio March 31, 2010 Market Value Capital Market Value Net As of Tr nsfers Contributions Distributions Fees Expenses Income Apprec./ Deprec. As of 12/31/2009 3/31/2010 RBC Global (Voyageur) International Portfolio 1.904 -3 93 1,997 Financial Reconciliation October II' To March 31, 2010 Market Value Market Value Net Cpital As of Transfers Contributions Distributions Fees Expenses Income Apprec./ Deprec. As of 9/30/2009 3131/2010 RBC Global (Voyageur) International Portfolio 1,915 - -5 82 1.997 Peer (:roue Analysis - International ketke Value Equity (SA +CF) t 100.00 75.00 50.00 1: d 25.00 0.00 -25.00 1 Oct -2009 Quarter To Mar -2010 ■ RBC Global (Voyageur) International Portfolio 4.90 (10) 4.29 (52) * MSCI EAFE Index 0.94 (65) 318 (60) Otai�l 1 2 Year Years 3 4 . Years Years Years $140.0 $120.0 $100.0 580.0 40.89 (94) -8.18 (71) -6.84 (80) 0.29 (67) N/A $60.0 1- 55.20 (43) -8.62 (74) -6.55 (74) -0.38 (74) 4.24 (77) 12/05 12/06 12/07 12/08 -RBCGlobal (Voyageur)International Portfolio Median 1.92 4.57 53.54 -6.09 -4.62 1.24 5.35 - MSCI EAFE Index 115.0 107.8 3/10 32 THE 711 BOGDAHN GROUP 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec-2008 Sep 2008 R[W Global (N oNageur) International Portfolio -0.58 (90) 15.90 (87) 16.56 (96) -5.12 (2) -15.97 (34) -16.50 (42) MSCI EAFh:Index 2.22 (50) 19.52 (45) 25.85 (29) -13.85 (EA) -19.90 (57) -20.50 (79) International Active Value Equity (SA+CF) Median 2.17 19.23 23.58 -13.05 -19.35 -17.03 32 THE 711 BOGDAHN GROUP Palm Beach Gardens Firefighters' RBC Global (Voyageur) International Portfolio March 31, 2010 5.0 0 0.0 0 o. -5.0 0 -10.0 -15.0 n o -20.0 -20.0 -15.0 -10.0 -5.0 0.0 5.0 n a MSCI EA FE l ndex (% ) 0 U ■ RBC Global (Voyageur) International Portfolio -W Over Performance f Under PeriDrnnnce -&-Dec-2008 ♦ Mar -2010 0 MSCI EAFE Index 0.00 25.00 A z 50.00 a. a 75.00 a` 100.00 Peer Group Scattergram - 3 bears I'ecr Grt m tm mt 5.00 0.00 e -5.00 d -10.00 0 -15.00 ! 15.00 20.00 25.00 30.00 35.00 40.00 Risk (Standard Deviation%) Return Standard Deviation ■ RBC Global (Voyageur) International Portfolio -6.83 20.37 • MSCI EAFE Index -6.55 27.02 - Median -4.62 25.59 12.00 9.00 e � 6.00 3.00 C 0.00 1- 10.00 •00• ■ N I I T r 6/05 6/06 6/07 6/08 6/09 3/10 Total Period 5-25 25- Median Median -75 75-95 Count Count Count Count 6 0 (0 %) 3 (50 %) 1 (17 %) 2 (33 %) 20 0 (0 %) 1 (5 %) 15 (75 %) 4 (20 %) 15.00 20.00 Risk (Standard Deviation % ) Return ■ RBC Global (Voyageur) International Portfolio N/A • MSCI EAFE Index 4.24 - Median 5.35 25.00 Standard Deviation N/A 22.36 21.28 30.00 �� 1111 33 ` BOGDAHN GROUP Tracking Up Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Error Capture Capture Alpha IR Ratio Beta Risk RBC Global (Voyageur) International Portfolio 9.91 69.15 76.99 -2.53 -0.15 -0.38 0.72 15.36 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A -0.24 1.00 18,84 �� 1111 33 ` BOGDAHN GROUP Historical I rackin, UP Down Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture RBC Global (Voyageur) International Portfolio N/A N/A N/A N/A N/A N/A N/A N/A MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.17 1 00 14.79 �� 1111 33 ` BOGDAHN GROUP Palm Beach Gardens Firefighters' Manning & Napier Overseas (EXOSX) March 31, 2010 RPJM Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprer / Deprec As of 12/31/2009 3131/2010 Manning & Napier Overseas (EXOSX) 1,265 1.299 Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec./ Deprec. As of 9/30/2009 3/31/2010 Manning & Napier Overseas (EXOSX) 1.265 11 24 1,299 Peer Group :knalvsis - International Equity Multi -Cap Core Funds (MF) Cull] 100.00 75.00 50.00 E 25.00 0.00 -25.00 I Quarter ■ Manning & Napier Overseas (EXOSX) 2.75 (17) • MSCI EAFE Index 0.94 (66) Oct -2009 1 2 3 To Year Years Years Mar -2010 2.74 (76) N/A N/A N/A 3.18 (72) 55.20 (38) -8.62 (49) -6.55 (60) 4 Years N/A -0.38 (56) $120.0 $1100 5 Years N/A $ 100.0 4.24 (53) 6/09 9/09 12/09 3/10 Manning & Napier Overseas (EXOSX) Median 1.26 4.18 53.34 -8.70 -5.91 -0.12 4.53 - MSCI EAFE Index T11F. 34 l BOGDAHN GROUP I 1 I 1 I 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending. Ending F.ndinz Ending Dec -2009 Sep -1009 Jun-2009 Mar -2009 Dec- 2008 Sep -2008 Manning& Napier Overseas (EXOSX) -0.01 (95) 25,72 (8) N/A N/A N/A N/A MSCI EAFE Index 2.22 (67) 19.52 (29) 2S SS 13,i -13.85 (62) -19.90 (40) -20.50 (45) International Equity Multi -Cap Core Funds (MF) Median 2.80 18.44 14 00 -12.32 -21.11 -2092 T11F. 34 l BOGDAHN GROUP TFIF 35 !� BOGDAHN GROUP Palm Beach Gardens Firefighters' Total Fixed Income March 31, 2010 Market �' »luc Net Market Value As of Capital of Transfers Contributions Distributions Fees Expenses Income Apprecd Deprec. 3120 12/31/2009 3/31/2010 Total VIX'd Income 8,713 5 - - -5 - 107 72 8,893 Financial Reconciliation October 1, 2009 To March 31, 2010 Market Value Capital Market Value Net Contributions Distributions Fees Expenses Income As of As of Transfers .Apprec./ Deprec. 9/30/2009 3/31/2010 Total Fixed Income 8,631 11 -11 211 51 8.893 25.00 20.00 15.00 t I I I 1 I Quarter Quarter Quarter Quarter Quarter 10.00 Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun-2009 a 5.00 Dec -2008 Sep -2008 0.00 5.06 (20) 2.62 (51) -5.00 1 Oct -2009 1 2 3 Quarter To Year Years Years Mar -2010 ■ Total Fixed Income 2.06 (55) 3.03 (41) 11.09 (53) 6.69 (44) 6.73 (50) * Barclays Capital Intermediate Aggregate 1.81 (76) 2.34 (63) 7.40 (88) 5.38 (78) 6.19 (66) 4 Years Cumulative Performance 150 0 1 48.7 $140.0 $130.0 5120.0 $110.0 5 Years 6.63 (52) 5.74 (54) $100.0 6.27 (67) 5.47 (69) 6/02 3/04 12/05 9/07 3/10 -Total Fixed Income Median 2.11 2.70 11.54 6.35 6.69 6.65 510 - Barclays Capital Intermediate Aggregate ss BOGDAHN GROUP t I I I 1 I Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun-2009 Mar -2009 Dec -2008 Sep -2008 Total Mixed Income 0.95 (23) 5.06 (20) 2.62 (51) 0.99 (37) 5.92 (11) -2.52 (83) Barclays Capital Intermediate Aggregate 0.53 (55) 3.21 (68) 1-68 (72) 0.91 (39) 3.58 (61) -0.13 1231 US Intermediate Duration Fixed Income Accounts (SA) Median 0.59 3.59 2.63 0.76 4.23 -1.01 ss BOGDAHN GROUP 10.0 8.0 6.0 8 $ 4.0 a 2.0 n 0 0.0 Palm Beach Gardens Firefighters' Total Fixed Income March 31, 2010 Over Perbrrrnrtce Under Performance F 0.0 20 4.0 6.0 8.0 10.0 Barclays Capital Intermediate Aggregate ( %) f Under Performance f Over P erfotmance -A- Jon -2005 ♦ Mar -2010 10.00 8.00 6.00 � 4.00 d 2.00 tY 0.00 c 25.00 A d e 50.00 d is u rL 75.00 P. tY 100.00 6/05 ■ Total Fixed Income 0 Barclays Capital Intermediate Aggregate 9.00 7.50 6.00 � 4.50 i 3.00 tY 1 50 Total 6/06 6/07 6/08 6/09 3/10 Period 8`25 25- Median Median -75 75.95 Count Count Count Count 20 0 (0 %) 3 (15 %) 6 (30 %) 11 (55 %) 20 1 (5 %) 5 (25 %) 5 (25 %) 9 (45 %) 0.00 2.00 4.00 6.00 i 8 viii 10.00 12.00 14.00 1.50 3.00 4.50 6.00 7.50 9.00 10.50 Risk ( Standard Mniation '/ I Risk(Standard Deviation %) Return Standard Deviation Return Standard Deviation ■ Total Fixed Income 6.73 4.69 ■ Total Fixed Income 5.74 3.99 0 Barclays Capital Intermediate Aggregate 6.19 2.89 • Barclays Capital Intermediate Aggregate 5.47 2.78 - Median 6.69 4.30 - Median 5.80 3.89 Tracking Up Market Down Market Alpha III Sharpe Beta Downside Error Ratio Risk Capture Capture Total Fixed Income 1 81 113.28 125.32 -0.67 0.30 1.05 1.20 2.21 Barclays Capital Intermediate Aggregate 0.00 100.00 100.00 0.00 N/A 1.22 1 00 1.52 Historical Tracking Up Market Down Market Alpha III Beta Downside Error Ratio Ratio Risk Capture Capture Total Fixed Income 1.69 102.88 95.93 -0.23 0.17 076 1 10 1 81 Barclays Capital Intermediate Aggregate 0.00 100.00 100.00 0.00 N/A 0 85 1 00 1 33 Till. TfI 37 ` BOGDAHN GROUP Palm Beach Gardens Firefighters' Agincourt Capital Management March 31, 2010 Financial Reconciliation I Quarter Market Value Net Capital Market Value As of Contributions Distributions Fees Expenses Income rec./ Dc rec As of 12/31/2009 Transfer PP p 3/31/2010 \gmcourt Capital Management 4.186 ? - - _ - 50 19 4275 Huaticial Reconciliation October 1, 2009To March 31, 2010 Market Value Net Capital Market Value A of Contributions Distributions Fees Expenses Income As of 9/30/2009 Transfers PP rec./ De rec. P 3/31/2010 Agincourt Capital Management 4161 5 - - -5 - 99 15 4.275 Peer Group :knalysis - US Broad Market Core Fixed Income (SA +CF) Cum 25.00 20.00 $115.0 15.00 10.00 e 5.00 $110.0 0.00 I 1 t I I t t $105.0 -5.00 I I _f 1 I 1 Oct -2009 1 2 3 4 5 Quarter Quarter To Year Years Years Years Years Ending Ending Mar -2010 Ending ■ Agincourt Capital Management 2.12 (50) 2.73 (49) 9.08 (69) N/A N/A N/A N/A * Barclays Capital Aggregate 1.78 (78) 199 (79) 7.69 (84) 539 (78) 6.14 (69) 6.25 (67) 5.44 (71) $100.0 9/08 3/09 9/09 3/10 Median 2.11 2.70 11.54 6.35 6.69 6.65 5.80 -Agincourt Capital Management - Barclays Capital Aggregate I I I 1 I 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -200.9 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Agincourt Capital Management 0.60 (48) 4.01 (73) 2.09 (75) 0.66 (41) 7.37 (5) N/A Barclays Capital Aggregate 0.20 (74) 3.74 (81) 1.78 (86) 0.12 (66) 4.58 (37) -049 (29) US Broad Market Core Fixed Income (SA+CF) Median 0.58 4.69 3.39 0.45 3.80 -I. 39 38 TIiF. BOGDAHN GROUP 39 Tm BOGDAHN GROUP Palm Beach Gardens Firefighters' Davis,Hamilton,Jackson & Assoc. Fixed March 31, 2010 Financial Reconciliation I Quarter M1farket Value !Market Value As of V Net Contributions Distributions Fees Expenses Income Capital As of 12/31/2009 Transfers Apprec./ Deprec. 3/31/2010 Dacis,l lanulton,.lackson & Assoc. Fixed 4,527 3 - - -3 - 57 34 4,618 Financial Reconciliation October 1, 2()09To March 31, 2010 Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Appree./ Deprec. As of 9/30/2009 3/31 /2010 Davis,Hanulton.Jackson & Assoc. Fixed 4.470 6 - - -6 - 112 36 4.618 Peer Group :knalysis - I'S Intermediate Duration Fixed Income .Accounts (SA) I Cunt 22.50 18.00 13.50 9,00 E m 4.50- 0.00 -4.50 1 Oct -2009 Quarter To Mar -2010 ■ Davis,Hamilton,Jackson & Assoc. Fixed 2.01 (41) 3.31 (I8) • Barclays Capital Intermediate Aggregate 1.81 (56) 234 (62) 1 2 3 4 5 Year Years Years Years Years 12.97 (19) N/A N/A N/A N/A 7.40 (76) 5.38 (67) 6.19 (69) 6.27 (70) 5.47 (70) $115.0 $110.0 $ 105.0 CI000 $95.0 t 6/08 12/08 6/09 Davis,Hamilton,Jackson & Assoc. Fixed Median 1.85 2.51 9.39 5.81 6.65 6.56 5.74 - Barclays Capital Intermediate Aggregate 1 -x- 12/09 3/10 40 �DIE BOGDAHN GROUP 1 1 1 I I I Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Devis,llamilton,Jackson & Assoc. Fixed 1.28 (13) 6.07 (10) 3.10 (41) 1.27 (23) 4.66 (40) -2.88 (84) Barclays Capital Intermediate Aggregate 0.53 (55) 3.21 (68) 1.68 (72) 0.91 (39) 3.58 (61) -0.13 (23) US Intermediate Duration Fixed Income Accounts (SA) Median 0.59 3.59 2.63 0.76 4.23 -1.01 40 �DIE BOGDAHN GROUP DiF 41 ` BOGDAHN GROUP Palm Beach Gardens Firefighters' American Real Estate Fund March 31, 2010 Financial Reconciliation I Quarter Market Value Market Value Net Capital As of Transfers Contributions Distributions Fees Expenses Income Appnr./ Deprec. As of 12/31/2009 3/31/2010 American Real Estate Fund 723 .2 -12 716 Financial Reconciliation October 1, 2009 To March 31, 2010 Market Value Market Vae Net Capital lu Contributions Distributions Fees Expenses Income ApprecdDeprec. As of As of Transfers 9130/2009 3/31 /1010 American Real Estate Fund 757 - - - 4 - 19 -55 716 Peer Group Analysis - US Private Real Estate -Open End (SA +CF) 10.00 0.00 -10.00 - -zo.00 ■ E d z -30.00 -40.00 -50.00 ! -2.85 -16.90 1 Oct -2009 Quarter To 1 Mar -2010 ■ American Real Estate Fund -0.67 (79) -4.86 (79) * NCREIF Property Index 0.76 (22) -1.36 (20) 1 2 3 4 Year Years Years Years -20.42 (64) -19.76 (51) -9.97 (41) N/A -9.59 (19) -12.17 (14) -4.31 (6) 0.54 (4) S Years N/A 4.19 (1) ( untuh ne Performance S111111111111 $120.0 $110.0 $100.0 $90.0 $80.0 $70.0 9/06 6/07 3108 12/08 9/09 3110 Median -001 -2.85 -16.90 -19.69 -12.55 -7.00 -0.18 -American Real Estate Fund - NCREIF Property Index Comparative t 1 I 1 1 I 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 American Real Estate Fund 4.22 (61) -9.62 (67) -7.44 (47) -13.10 (41) -7.78 (26) -0.56 (56) NCREIF Property Index -2.11 (17) -3.32 (22) -5.20 (18) -7.33 (15) -8.29 (28) -0.17 (42) US Private Real Estate -Open End (SA +CF) Median -3.73 -7.30 -8.06 -14.81 -10.07 -0.30 42 BOGDAHN GROUP �7!#� DiF 43 ` BOGDAHN GROUP Palm Beach Gardens Firefighters' Benchmark History As of March 31, 2010 Ilisturical IINbrid Composition Total Fund Effective Date: May -1998 S &P 500 Index 60.00 Barclays Capital U.S. Government/Credit 35.00 Citigroup 3 Month T -Bill 5.00 Effective Date: Jan -2001 S &P 500 Index 65.00 Barclays Capital U.S. Government/Credit 30.00 Citigroup 3 Month T -Bill 5.00 Effective Date: Apr -2003 S &P 500 Index 65.00 Barclays Capital Intermediate U.S. Government/Credit 30.00 Citigroup 3 Month T -Bill 5.00 Effective Date: Jul -2005 S &P 500 Index 55.00 Barclays Capital Intermediate U.S. Government/Credit 30.00 MSCI EAFE 10.00 Citigroup 3 Month T -Bill 5.00 Effective Date: Oct -2007 Russell 3000 Index 55.00 Barclays Capital Intermediate Aggregate 30.00 MSCI EAFE 10.00 Citigroup 3 Month T -Bill 5.00 Effective Date: Jul -2008 Russell 3000 Index 55.00 Barclays Capital Intermediate Aggregate 25.00 MSCI EAFE 10.00 NCREIF Property Index 10.00 44 Historical Hvbrid Composition Dana Fixed Policy Effective Date: May -1998 Barclays Capital U.S. Government/Credit Effective Date: Apr -2003 Barclays Capital Intermediate U.S. Government/Credit Effective Date: Oct -2007 Barclays Capital Intermediate Aggregate 100.00 100.00 100.00 THE BOGDAHN GROUP Statistics Definitions Statistics Description Return — Compounded rate of return for the period. Standard Deviation — 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. Sharpe Ratio — Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is ctive Return the absolute rate of return per unit of risk. The higher the value, the better the product's historical risk - adjusted performance. Alpha — A measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured p Market Capture 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. Beta -- 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. R- Squared — The percentage of a portfolio's performance explained by the behavior of the appropriate benchmark. High R- Square means a higher correlation of the portfolio's performance to the appropriate benchmark. Treynor Ratio — 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. Downside Risk — 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. Tracking Error — A measure of the standard deviation of a portfolio's performance relative to the performance of an appropriate market benchmark. formation Ratio — Measured by dividing the active rate of return by the tracking error. The higher the Information Ratio, the more value -added contribution by the manager. onsistency — The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. The higher the consistency figure, the more value a manager has contributed to the product's performance. Kcess Return — Arithmetic difference between the managers return and the risk -free return over a specified time period. ctive Return — Arithmetic difference between the managers return and the benchmark return over a specified time period. Kcess Risk — A measure of the standard deviation of a portfolio's performance relative to the risk free return. p Market Capture — The ratio of average portfolio return over the benchmark during periods of positive benchmark return. Higher values indicate better product performance. own Market Capture — The ratio of average portfolio return over the benchmark during periods of negative benchmark return. Lower values indicate better product performance. Calculation based on monthly periodicity. 45 Ti*, BOGDAHN `� GROUP Chicago 4320 Winfield Road Suite 200 Warrenville, Illinois 60555 TIII BOGDAHN ...J GROUP simplifying your investment and fidrrriary decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 RAF 1,10 792? Milwaukee 250 E. Wisconsin Ave Suite 1800 Milwaukee, Wisconsin 53202 Labor Donated i Labor Donated e k �s t � £ F� 3 Labor Donated Introduction and Summary We are pleased to present you with this monthly report regarding securities and corporate governance litigation. Within this report, we are providing you with a list of securities cases that have settled and a list of all recently filed securities class actions. We will continue to inform you and highlight if the Fund purchased stock during the Class Period in any of the as -filed class actions. Should you have any questions at any time, please do not hesitate to contact us. Shepherd, Finkelman, Miller & Shah, LLP Market Analysis In February, 2010, The Dow Jones Industrial Average rose approximately 0.55 %, the S &P 500 gained approximately 0.88% and the NASDAQ Composite Index increased by approximately 1.08 %. In the month of March, 2010, to date, The Dow Jones Industrial Average has risen approximately 2.0 %, the S &P 500 is up approximately 3.09% and the NASDAQ Composite Index has increased by approximately 4.1 %. A survey of U.S. consumers was released this month by Thomson Reuters /University of Michigan. The survey indicated that U.S. consumer sentiment has declined in March, reflecting Americans' negative attitude towards the U.S. job market outlook. The preliminary March reading for the overall index on consumer sentiment was 72.5, which is down 73.6 from its ending point in February. The March index was below the 73.6 forecast by analysts polled by Reuters. The index of consumers' 12 -month economic outlook fell to 74 from 80 in February. The survey's I -year inflation expectation index rose to 2.8 in early March from 2.7 in February. There was positive news this month that industrial production in the Eurozone increased by 1.7% in January from the month before. This raised hope in Europe that the 16 countries in the Eurozone will recover more quickly than expected from the recession. The spike in industrial production was the largest monthly increase since 1990 and was more than the 0.6 % expected by analysts. Industrial output is extremely important for the Eurozone economy, which relies heavily on exporting manufactured goods. In the U.S. job market, the U.S. Labor Department issued its monthly report, which indicated that fewer jobs were cut in February than expected. It is believed that the positive job report helped commodities rise, and, thus, positively affected the share prices of companies like ExxonMobil Corp. and Chevron Corp. Several companies posted positive results already this month. Financial stocks, including Bank of America Corp. and JP Morgan Chase & Co., received a boost from the improved employment data. It is thought that these positive steps for financial stocks will lead to fewer loan losses. Apple, Inc. has announced the launch date of April 3, 2010 for its new iPad tablet computer. As a result, Apple stock has risen so far this month. In the housing sector, in an attempt to remedy the foreclosure crisis, the Obama administration announced a new plan that will take effect on April 5, 2010. The program will permit homeowners to sell their homes for less than they owe on mortgages and will provide them with cash for doing so, thereby improving the liquidity of the housing market. The process in which a property is sold for less than the balance of the mortgage is known as a short sale. Under the program, lenders will now be encouraged to accept a short sale, as under the new plan, the servicing bank will receive $1,000 from the U.S. government and if there are multiple loans, additional money will go toward those loans. Further, eligible borrowers will receive $1,500 in relocation assistance. Labor Donated Upcoming settlement Claim Deadlines The following is a chart of upcoming settlement claim deadlines. We provide you with this information first in this Report because the settlements reflected below may present an opportunity for the Fund to increase its assets with little or no expense. Although institutional investors such as the Fund are supposed to automatically receive notice of all securities class action settlements so that claims can be timely submitted, statistics demonstrate that many shareholders fail to submit claims for monies to which they are entitled. In a number of cases, it has been documented that the percentage of eligible shareholders submitting claims is less than 50 %. Although we will endeavor to separately notify you if we discover that you own securities for which a claim can be submitted, since we do not have an historical record of all securities ever held by the Fund, it is best if you provide the person responsible for overseeing the submission of claims with a copy of this Report to ensure that any claims to which the Fund is entitled can be promptly submitted. If, at any time, the Fund's staff or others require assistance in submitting a claim or following up regarding the status of a claim, please contact us and we will be pleased to assist you. Labor Donated SETTLEMENT PROOF OF CLAIM COMPANY CLASS PERIOD AMOUNT DEADLINE Threshold Pharmaceuticals $10M 2/4/05-7/14/06 4/15/2010 American Dental Partners, Inc. $6M 2/25/04-12/13/07 4/17/2010 PETCO Animal Supplies, Inc. $16M 7/13/06 -10 /26/06 4/28/2010 Teletech Holdings, Inc. $11 M 10/25/06-7/16/08 5/20/2010 Stone Energy Corporation $10.5M 5/2/01- 3 /10 /06 5122/2010 Arotech Corp. $2.9M 11/9/04-11/14/OS 6/ 1 /2010 Shuffle Master, Inc. $13M 2/1/06-3/12/07 6/3/2010 Seragen, Inc. $4.375M Shares held on 8/12/98 617/2010 SunOpta, Inc. $11.25M 2123107-1/27/08 6/11/2010 Recommendation We have identified the following stocks in your portfolios for which you should file a proof of claim form: NONE IDENTIFIED. Labor Donated Upcoming Lead Plaintiff Deadlines We continue to evaluate whether it is appropriate to recommend that the Fund participate in any securities class actions that are filed (to the extent that the Fund purchased any of the securities at issue during the proposed class periods or during any alternative class periods that our investigation and evaluation determines could be appropriate) or any corporate governance litigation. For your review and information, a chart of the currently pending securities class actions that we are evaluating appears below: COMPANY TICKER PERCENTAGE DECLINE LEAD PLAINTIFF DEADLINE CRM Holdings, Ltd. CRMH 36% 4/6/2010 Nokia Corporation NOK 46% 4/6 12010 Toyota Motor Corporation TM 6% 4/6/2010 Smithtown Bancorp, Inc. SMTB 15% 4/26/2010 Electronic Game Card, Inc. EGMI 60% 5/3/2010 Novelos Therapeutics, Inc. NVLT 80% 5/4/2010 Recommendation An analysis of each of the above cases, as well as our recommendations, appears in the case specific summaries that appear at Exhibit "A." Although the Fund purchased shares of Nokia during the Class Period, the Fund had substantial sales during the Class Period, which resulted in profits to the Fund from the inflated price. It does not appear that the Fund purchased shares of the remaining above - referenced securities during the Class Periods. Labor Donated Conclusion We hope that this information is informative and useful. We look forward to continuing to work on behalf of, and to protect the interests of, the Fund. If you have any questions or would like to discuss any of these matters, please do not hesitate to contact us. Shepherd, Finkelman, Miller & Shah, LLP Labor Donated Labor Donated CRM HoldinFrs, Ltd. March 15, 2010 A federal securities class action was filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who acquired the common stock of CRM Holdings, Ltd. ( "CRM" or the "Company ") between December 21, 2005 and November 5, 2008, inclusive (the "Class Period "). The Complaint seeks remedies under the Securities and Exchange Act of 1934 (the "Exchange Act").' This report includes a brief statement of the relevant facts, our legal analysis and finally, if appropriate, our recommendations. I. ALLEGATIONS OF THE COMPLAINT CRM is a Bermuda based insurer that provides workers' compensation insurance in a number of states in the United States. During the Class Period, it appears that various officers and directors (collectively, "defendants ") may have misled investors regarding the Company's financial performance and prospects. Specifically, it has been alleged that defendants and their affiliates: (1) engaged in a fraudulent scheme to grow membership in eight self- insured groups (the "Trusts") previously administered by CRM, by charging premiums below commercial rates; (2) inflated reported revenues while reducing net paid premium income so that the assets of the Trusts ultimately would become insufficient to cover liabilities; (3) disguised the true financial conditions of the Trusts by engaging in certain improprieties, including providing the New York State Workers' Compensation Board (WCB) with materially false financial reports for the Trusts, to cover up the fraudulent scheme; (4) exposed the Company to hundreds of millions of dollars in liabilities relating to the under - funding of the Trusts; and (5) failed to maintain adequate internal and financial controls. On October 3, 2008, CRM disclosed that WCB intended to initiate legal proceedings against it on behalf of the Trusts. On this news, shares of CRM Holdings declined 24.31 %. Then, on November 5, 2008, CRM reported its financial results for its fiscal third quarter and increased loss reserves by $2.5 million, which should have been taken earlier in the year. CRM stock dropped more than 36% in response to this news by November 7, 2008 on high volume. II. LEGAL ANALYSIS We believe that claims under Sections 10(b) and 20(a) of the Exchange Act are quite strong. It appears that defendants made a number of false and /or misleading statements, while failing to disclose material adverse facts about the Company's business. In addition, the case is assigned to the Honorable Robert B. Patterson, an excellent jurist, who is well known for being extremely fair. The assignment of this case to Judge Patterson, in our judgment, increases the likelihood that the parties will receive a fair hearing of the case on the merits. Of course, assignment of the case to such a well respected jurist provides us with additional comfort in recommending that our institutional clients consider participation in this action. III. RECOMMENDATIONS We believe that, during the Class Period, it is likely that we can prove that defendants misrepresented and failed to disclose the true value of the Trusts and that CRM lacked adequate internal and financial controls over the Trusts. This may have resulted in the stock trading at artificially inflated prices. If such securities laws violations are established, Class members have suffered damages by paying artificially inflated prices for CRM's common stock. We generally would recommend that our institutional clients seek lead plaintiff status in this matter, however, based upon our review, it does not appear that the Fund purchased shares of CRM during the Class Period. Beverly L. Munter v. CRM Holdings, Ltd., et al., 1:10 -cv- 00975 -RPP (S.D.N.Y., filed February 5, 2010)audge Robert B. Patterson). Labor Donated Nokia Corporation March I S, 2010 A federal securities class action was filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who acquired the American Depository Shares ( "ADS ") of Nokia Corporation ( "Nokia" or the "Company ") between January 24, 2008 and September 5, 2008, inclusive (the "Class Period "). The Complaint seeks remedies under the Securities and Exchange Act of 1934 (the "Exchange Act ").' This report includes a brief statement of the relevant facts, our legal analysis and finally, if appropriate, our recommendations. I. ALLEGATIONS OF THE COMPLAINT Nokia is incorporated under the laws of Finland. Nokia's ADS are issued by Citibank, N.A. as depository instruments and traded on the NYSE under the symbol, NOK. Nokia manufactures mobile devices, and provides Internet services and digital map information worldwide. During the Class Period, it appears that various officers and directors (collectively, "defendants ") may have issued a series of false and misleading statements. It is alleged that the positive statements about Nokia's new product launches were made without a reasonable basis because of known component supply shortages and manufacturing problems Nokia was then encountering; Nokia was losing market share due to intense price cuts by competitors; and, while defendants stated they expected the overall industry average selling price to decline in 2008, they failed to disclose that Nokia had dramatically slashed its average selling price to maintain its market share due to severe price competition. On September 5, 2008, Nokia disclosed a production glitch with a mid -range device and aggressive price cuts by some of its rivals. On this news, the value of Nokia's ADS declined significantly. By the end of the class period, the price of Nokia's ADS had fallen from its class period high of $38.25 to $20.62. II. LEGAL ANALYSIS We believe that claims under Sections 10(b) and 20(a) of the Exchange Act could be successful. Here, defendants may have made statements or omitted material facts which caused an artificial inflation in the price of Nokia's ADS. In light of the nature of the complaint's allegations, however, we believe that there may be some significant impediments to recovery, including the potential applicability of the "truth on the market defense," in light of the extensive information publicly available at the time regarding the competitive cell phone market and industry commentary regarding the same. In addition, the case has been assigned to The Honorable George B. Daniels who, although generally regarded as even - handed and fair, also has been the subject of news coverage regarding the lengthy delays generally applicable to civil cases assigned to his courtroom. Since we believe that justice delayed often equates to justice denied, we would be reluctant to recommend that our clients actually participate in this litigation at this time. III. RECOMMENDATIONS We believe that during the Class Period, it is possible that we can prove that defendants misrepresented and omitted material facts concerning the business and operations at Nokia. These statements may have caused the stock to trade at artificially inflated prices. If such securities laws violations are established, Class members have suffered damages in that they paid artificially inflated prices for Nokia's ADS. For the reasons explained above, we would not recommend that our institutional clients seek to serve as lead plaintiff at this time. In any event, based upon our review, although the Fund purchased shares of Nokia during the Class Period, the Fund had substantial sales during the Class Period, which resulted in profits to the Fund from the inflated price. I City of Roseville Employees' Retirement System, et al. v. Nokia Corporation, et al., 1:10 -cv- 00967 -GBD (S.D.N.Y., filed February 5, 2010)Qudge George B. Daniels). Labor Donated Toyota Motor Corporation March 15, 2010 A federal securities class action was filed in the United States District Court for the District of California on behalf of all persons or entities who acquired the common stock, including the American Depositary Shares ( "ADS "), of Toyota Motor Corporation ( "Toyota" or the "Company ") between December 22, 2006 and February 2, 2010, inclusive (the "Class Period "). The Complaint seeks remedies under the Securities and Exchange Act of 1934 (the "Exchange Act ").' This report includes a brief statement of the relevant facts, our legal analysis and finally, if appropriate, our recommendations. I. ALLEGATIONS OF THE COMPLAINT Toyota is headquartered in Toyota City, Japan, with executive offices in Torrance, California and branch offices in the United States and worldwide. Toyota designs, manufactures, assembles, and sells passenger cars, minivans and trucks and related parts and accessories. During the Class Period, it appears that various officers and directors (collectively, "defendants") misled investors by failing to disclose that there was a major design defect in Toyota's acceleration system, which could cause accidents. On January 21, 2010, Toyota announced that it would be recalling 2.3 million Toyota brand vehicles in North America due to problems with the acceleration pedal sticking. Then, on January 26, 2010, Toyota announced it would stop the sale of eight Toyota models involved in the recall. As a result of this news, Toyota's stock plunged. On January 27, 2010, Toyota announced that I.1 million cars and trucks would be included in a recall that the Company originally issued in November 2009 relating to a problem with certain Toyota vehicles' floor mats interfering with the accelerator pedal. On February 3, 2010, Toyota reported similar acceleration problems with its popular Prius hybrid vehicle. As a result of this news, Toyota's ADS fell $4.69 per share, closing at $73.49 per share on February 3, 2010. Toyota's common stock dropped approximately 6 %. II. LEGAL ANALYSIS We believe that claims under Sections 10(b) and 20(a) of the Exchange Act could well be successful. Here, defendants appear to have made untrue statements of material fact and /or failed to disclose materially adverse facts concerning Toyota's vehicles. After the truth was revealed and it was apparent that Toyota's vehicles contained a design defect that could result in unintended acceleration, the Company's ADS declined nearly 20% from its Class Period high. Thus, a claim under Section 10(b) is viable and could be successful. We believe that a Section 20 (a) claim against the individual defendants also could also be successful, as each individual defendant had the power to control public statements regarding Toyota and the power to control the employees of Toyota. Unfortunately, the case has been assigned to the Honorable Dale S. Fischer, who has an established reputation of ruling in favor of civil defendants and corporations when there are close questions of law and fact. It also has been reported that, on occasion, Judge Fischer appears to evince a degree of judicial hostility to the class action device. III. RECOMMENDATIONS We believe that, during the Class Period, it is likely that we can prove that defendants misrepresented and omitted material facts concerning the acceleration problem with certain Toyota vehicles These statements also appear to have resulted in the stock trading at artificially inflated prices. Based upon our review, it does not appear that the Fund purchased shares of Toyota during the Class Period. I Harry Stackhouse v. Toyota Motor Corporation, et al., 2:10 -cv- 0922 -DSF (C.D.Cal., filed February 8, 2010)audge Dale S. Fischer). Labor Donated Smithtown Bancorp, Inc. March 15, 2010 A federal securities class action was filed in the United States District Court for the Eastern District of New York on behalf of all persons or entities who acquired the common shares of Smithtown Bancorp, Inc. ( "Smithtown" or the "Company ") between March 13, 2008 and February I, 2010, inclusive (the "Class Period "). The Complaint seeks remedies under the Securities and Exchange Act of 1934 (the "Exchange Act ").' This report includes a brief statement of the relevant facts, our legal analysis and finally, if appropriate, our recommendations. I. ALLEGATIONS OF THE COMPLAINT Smithtown is a bank holding company with one direct wholly -owned subsidiary, Bank of Smithtown, a New York state chartered commercial bank. Smithtown maintains its headquarters in Hauppauge, New York. Smithtown provides trust services, including demand, savings and time deposits accepted from consumers, businesses and municipalities located primarily within Long Island, New York. Smithtown has three wholly -owned subsidiaries that were formed for the purpose of issuing trust preferred securities. During the Class Period, it appears that various officers and directors (collectively, "defendants ") may have issued a series of false and misleading statements concerning Smithtown's business and operations. Specifically, the Complaint alleges that defendants failed to disclose that: (i) the Company's financial results were artificially inflated due to Smithtown's material understatement of its loan loss reserves and Smithtown's failure to state certain of its assets at their true fair value; (ii) Smithtown improperly delayed the recognition of its impaired assets in order to inflate its reported income and asset quality; (iii) the Company's internal and disclosure controls were materially deficient; and (iv) the Company, through its subsidiary, was engaged in unsafe and /or unsound banking practices. On February 1, 2010, Smithtown issued a press release announcing its fourth quarter and full year 2009 results. In this press release, Smithtown reported a loss of $19.8 million for the fourth quarter of 2009 or $1.34 per fully diluted share. In response to this press release, shares of Smithtown fell approximately 15 %, to close at $4.60 per share on February 2, 2010. II. LEGAL ANALYSIS We believe that claims under Sections 10(b) and 20(a) of the Exchange Act are likely to be successful in this case. Here, defendants appear to have made misleading statements or omitted material facts concerning Smithtown's business, prospects and operations. Such misstatements and omissions may have caused Smithtown's stock to be overvalued and artificially inflated during the Class Period. It is likely that investors would not have purchased Smithtown's stock at the price they paid had they known that the market price had been artificially inflated by defendants' misstatements. Thus, a claim under Section 10(b) is viable and could be successful. We believe that a Section 20(a) claim against the individual defendants also could be successful, because each of the individual defendants had access to non - public information about Smithtown's business, finances, and present and future business prospects. The case has been assigned to The Honorable Sandra L. Townes with whom our firm does not have experience and about whom little has been reported since her appointment in 2004. The few reports regarding Judge Townes appear to indicate that she is fair and reasonable in civil litigation. III. RECOMMENDATIONS We believe that during the Class Period, it is likely that we can prove that defendants misrepresented and omitted material facts concerning the business and operations at Smithtown. These statements may have caused the stock to trade at artificially inflated prices. If such securities laws violations are established, Class members have suffered damages in that they paid artificially inflated prices for Smithtown common stock. We generally would recommend that our institutional clients seek lead plaintiff in this matter, however, based upon our review, it does not appear that the Fund purchased shares of Smithtown during the Class Period. Waterford Labor Donated Electronic Game Card., Inc. March 15, 2010 A federal securities class action was filed in the United States District Court for the Central District of California on behalf of all persons who purchased the common stock of Electronic Game Card, Inc. ( "Electronic Game Card" or the "Company ") between April 5, 2007 and February 19, 2010, inclusive (the "Class Period "). The Complaint seeks remedies under the Securities and Exchange Act of 1934 (the "Exchange Act").' This report includes a brief statement of the relevant facts, our legal analysis and finally, if appropriate, our recommendations. I. ALLEGATIONS OF THE COMPLAINT Electronic Game Card is a Nevada corporation with its principal executive offices in Irvine, California. Electronic Game Card develops, produces and markets small electronic games to casinos, lotteries, and other companies. These small games act as electronic lottery tickets, portable casino games, educational games for children, promotional items, or as a special form of advertising. During the Class Period, it appears that various officers and directors (collectively, "defendants ") may have issued a series of false and misleading statements to the investing public. In early 2010, the Company admitted that its yearly and quarterly financial results from 2006 through the present could not be relied upon. The Company's independent auditor, Mendoza Berger and Company, LLP, withdrew its audit opinions for the Company's 2006, 2007 and 2008 Annual Reports. As a result of Mendoza Berger's action, the SEC halted trading and the Company's stock plummeted. The Company's stock traded at a Class Period high of $2.20 per share, and fell to $0.88 per share on the date the SEC halted trading. 11. LEGAL ANALYSIS We believe that claims under Sections I0(b) and 20(a) of the Exchange Act are strong and likely to be successful. Here, defendants appear to have made statements or omitted material facts throughout the Class Period concerning the Company's financial condition and business prospects. It is alleged that, as investors became aware of Electronic Game Card's true financial condition, the price of the Company's stock declined dramatically. Had investors known that Electronic Game Card's stock was artificially inflated, they most likely would not have invested in the Company's stock during the Class Period. Thus, a claim under Section 10(b) is viable and could be successful. We believe that a Section 20 (a) claim against the individual defendants could also be successful, as each individual defendant had the power and influence to cause the Company to engage in wrongful conduct. In addition, this case has been assigned to the Honorable James V. Selna who we hold in extremely high regard. Judge Selna is widely recognized for both his intellect and impartiality and is a jurist who moves cases promptly to resolution. 111. RECOMMENDATIONS We believe that during the Class Period, it is likely that we can prove that defendants misrepresented and omitted material facts concerning Electronic Game Card's financials. These statements may have caused the stock to trade at artificially inflated prices. If such securities laws violations are established, Class members have suffered damages in that they paid artificially inflated prices for Electronic Game Card common stock. We generally would recommend that institutional clients seek lead plaintiff appointment if such clients suffered significant losses. appear that the Fund purchased shares of Electronic Game Card during the Class Period. Based upon our review, it does not I James M. Burns v. Electronic Game Card, Inc., et al., 8: 1 0-cv-00258-JVS-AN (C. D. Cal., filed March 3, 2010)(Judge James V. Selna). Labor Donated Novelos Therapeutics, Inc. March 15, 2010 A federal securities class action was filed in the United States District Court for the District of Massachusetts on behalf of all persons who purchased the common stock of Novelos Therapeutics, Inc. ( "Novelos" or the "Company ") between December 14, 2009 and February 24, 2010, inclusive (the "Class Period "). The Complaint seeks remedies under the Securities and Exchange Act of 1934 (the "Exchange Act ").' This report includes a brief statement of the relevant facts, our legal analysis and finally, if appropriate, our recommendations. I. ALLEGATIONS OF THE COMPLAINT Novelos is a Delaware corporation with its principal executive offices in Newton, Massachusetts. Novelos is a biopharmaceutical company commercializing oxidized glutathione –based compounds for the treatment of cancer and hepatitis. One of its products, NOV -002, was in Phase 3 development for treatment of lung cancer under a Food and Drug Administration ( "FDA ") Special Protocol Assessment ( "SPA ") and Fast Track. During the Class Period, it appears that various officers and directors (collectively, "defendants ") may have issued a series of false and misleading statements. At the start of the Class Period, defendants stated that the Phase 3 trial had gone on longer than expected because patients were living longer than had been expected, which implied that the Phase 3 trial was more successful than the Company had believed it would be. On February 24, 2010, Novelos disclosed that the trial's duration was longer than originally anticipated, not because of NOV -002's efficacy, but because the patients in the control arm of the trial —who did not receive NOV- 002 —lived longer than anticipated. On this news, shares of the Company's stock declined more than 80 %, from a close of $1.65 per share on February 23, 2010, to a close of $0.32 per share on February 24, 2010. II. LEGAL ANALYSIS We believe that claims under Sections 10(b) and 20(a) of the Exchange Act could be successful. Here, defendants appear to have made statements or omitted material facts throughout the Class Period concerning the Company's NOV -002 Phase 3 clinical trial. It is alleged that defendants were aware of the dissemination of information to the public and that these false statements were made for the purpose of artificially inflating the price of Novelos' stock. The alleged misrepresentations and omissions by the Company concerning the clinical trial may have caused many investors to invest in Novelos' common stock. Had investors known that Novelos' common stock was artificially inflated, they most likely would not have invested in Novelos during the Class Period. Thus, a claim under Section 10(b) is viable and could be successful. We believe that a Section 20(a) claim against the individual defendants could also be successful, as each individual defendant had the power and influence to control the decision- making of the Company. The case has been assigned to the Honorable Nathaniel M. Gordon who is generally recognized as a fair and efficient jurist, thereby rendering the case more attractive than other similar cases from a potential litigant's perspective. 111. RECOMMENDATIONS We believe that during the Class Period, it is likely that we can prove that defendants misrepresented and omitted material facts concerning the NOV -002 Phase 3 clinical trial. These statements may have caused the stock to trade at artificially inflated prices. If such securities laws violations are established, Class members have suffered damages in that they paid artificially inflated prices for Novelos common stock. We generally would recommend that our institutional clients suffering significant losses seek lead plaintiff status in this case, however, based upon our review, it does not appear that the Fund purchased shares of Novelos during the Class Period. I Drew Weaver v. Novelos Therapeutics, Inc., et al., 1:10 -cv- 10394 -NMG (D. Mass., filed March 5, 2010)audge Nathaniel M. Gorton). Labor Donated P. n r � TI,. -,' * y , . r% � � b.* s ?. ��* y±n+`wa *� w��,. ♦^� � 4 ?# ¥W *�w *�wki *%�y'�* .. -.: �' S�` Id. P � <. '� r %�`Pt h yk �`�. R� g i�r� y.w'^ gyp, � i�� + *y' M�RR �y a • „a, Mp • 4►a.. +t' ra z r 1 i P. n r � TI,. -,' * y , . r% � � b.* s ?. ��* y±n+`wa *� w��,. ♦^� � 4 ?# ¥W *�w *�wki *%�y'�* .. -.: �' S�` Id. P � <. '� r %�`Pt h yk �`�. R� g i�r� y.w'^ gyp, � i�� + *y' M�RR �y a • „a, Mp • 4►a.. +t' ra z r 1 n 3 l h Introduction Market Analysis I Upcoming Settlement Claim Deadlines 2 Upcoming Lead Plaintiff Deadlines 3 Conclusion `�r 1 �W ? t r •1"l i fir; k }f . . . . . . . . . . . . . . . . . . . . . . . . f � r f 1� ro ro 4• 9 � . . . . . . . . . . . . . . . . . . . . . . . . f � r "hi ! R ST 1 r x Y� �f "C s aY S 4 s_ r P4 «�`t Introduction and, summary We are pleased to present you with this monthly report regarding securities and corporate governance litigation. Within this report, we are providing you with a list of securities cases that have settled and a list of all recently filed securities class actions. We will continue to inform you and highlight if the Fund purchased stock during the Class Period in any of the as -filed class actions. Should you have any questions at any time, please do not hesitate to contact us. Shepherd, Finkelman, Miller & Shah, LLP Market Analysis In March, 2010, The Dow Jones Industrial Average rose approximately 4.35 %, the S &P 500 gained approximately 4.81 % and the NASDAQ Composite Index increased by approximately 5.47%. In the month of April, 2010, to date, The Dow Jones Industrial Average has risen approximately 0.7 %, the S &P 500 is up approximately 1.5% and the NASDAQ Composite Index has increased by approximately 2.3 %. A recent report indicated that U.S. wholesale inventories rose in February 2010, reaching their highest level since October 2008. The increase in wholesale inventories directly affects the manufacturing sector, which has been leading the economic recovery since the second half of 2008. In February, durable goods inventories increased 0.5 %, the largest gain since September 2008. This month, the European Union pledged nearly $40 billion to support Greece in its financial problems. It is believed that this has helped keep the dollar low against the euro. A weaker dollar typically results in an increase in demand from foreign investors, thus bolstering demand and prices. Energy shares drove stocks higher this month in the U.S. market, partly as a result of the joint venture between Reliance Industries (Bombay:RELI.BO) and Atlas Energy (Nasdaq:ATLS). Reliance Industries agreed to pay $1.7 billion to form a joint venture with Atlas Energy, an independent gas company. The joint venture would provide Reliance Industries with a considerable stake in a natural gas project for the U.S. In the housing sector, interest rates on home loans have begun to rise. The Mortgage Bankers Association predicts rates on 30 -year mortgages will be 5.5% by late summer and will rise to 6% by the end of the year. The Federal Reserve has recently halted its emergency $1.25 trillion program to buy mortgage debt, which is contributing to the increase on interest rates. Federal Reserve Vice Chairman Donald Kohn remarked this month that banks may lend more as the economy improves, but cautioned that the process would take time. Other sectors have also seen an increase in interest rates. Many automobile finance companies rose rates to 4.72% in February 2009 from 3.26% in December 2009, according to the Federal Reserve. Another area of rising interest rates is credit cards. This month, the Federal Reserve reported that the average interest rate on credit cards reached 14.26% in February 2009, the highest since 2001. Upcoming settlement Claim Deadlines The following is a chart of upcoming settlement claim deadlines. We provide you with this information first in this Report because the settlements reflected below may present an opportunity for the Fund to increase its assets with little or no expense. Although institutional investors such as the Fund are supposed to automatically receive notice of all securities class action settlements so that claims can be timely submitted, statistics demonstrate that many shareholders fail to submit claims for monies to which they are entitled. In a number of cases, it has been documented that the percentage of eligible shareholders submitting claims is less than 50 %. Although we will endeavor to separately notify you if we discover that you own securities for which a claim can be submitted, since we do not have an historical record of all securities ever held by the Fund, it is best if you provide the person responsible for overseeing the submission of claims with a copy of this Report to ensure that any claims to which the Fund is entitled can be promptly submitted. If, at any time, the Fund's staff or others require assistance in submitting a claim or following up regarding the status of a claim, please contact us and we will be pleased to assist you. COMPANY SETTLEMENT CLASS PERIOD PROOF OF CLAIM AMOUNT DEADLINE PETCO Animal Supplies, Inc. $16M 7/13/06- 10/26/06 4/28/2010 TeleTech Holdings, Inc. $11M 10/25/06- 7/16/08 5/20/2010 Stone Energy Corporation $10.5M 5/2/01- 3/10/06 5/22/2010 Arotech Corp. $2.9M 11/9/04- 11/14/05 6/1/2010 Shuffle Master, Inc. $13M 2/1/06- 3/12/07 6/3/2010 Seragen, Inc. $4.375M shares held on 8/12/98 6/7/2010 Flowserve Corporation, et aL $55M 2/6/01- 9/27/02 6/8/2010 Collins & Aikman $12.2M 8/6/02- 5/17/05 6/8/2010 Adams Golf, Inc. $16.5M 7/10/98- 10/22/98 7/3/2010 SunOpta, Inc. $11.25M 2/23/07- 1/27/08 6/11/2010 Touch America Holdings, Inc. $19M 1/30/01- 11/14/01 6/21/2010 Able Laboratories $9.15M 10/30/02- 05/18/05 6/30/2010 LDK Solar Co., Ltd. $16M 6/1/07- 10/7/07 8/16/2010 Recommendation We have identified the following stocks in your portfolios for which you should file a proof of claim form: NONE IDENTIFIED. Upcoming Dead Plaintiff Deadlines We continue to evaluate whether it is appropriate to recommend that the Fund participate in any securities class actions that are filed (to the extent that the Fund purchased any of the securities at issue during the proposed class periods or during any alternative class periods that our investigation and evaluation determines could be appropriate) or any corporate governance litigation. For your review and information, a chart of the currently pending securities class actions that we are evaluating appears below: COMPANY Medivation, Inc. TICKER PERCENTAGE DECLINE 1"V 11VU] Ormat Technologies, Inc. ORA Schweitzer - Mauduit International, Inc. SWM Cell Therapeutics, Inc. CTIC 67% 17% 34% not specified LEAD PLAINTIFF 11:F_19141a� 5/10/2010 5/10/2010 5/10/2010 5/11/2010 St. Jude Medical, Inc. STJ 13% 5/17/2010 Athenahealth, Inc. ATHN 13% 5/18/2010 AMAG Pharmaceuticals, Inc. AMAG not specified 5/18/2010 Fugi International, Inc. FUQI 37% 5/18/2010 Addus HomeCare Corporation ADUS 37% 5/25/2010 The Hartford Financial Services Group HIG 15% 5/31/2010 Boston Scientific Corporation BSX 12.6% 6/8/2010 Recommendation An analysis of each of the above cases, as well as our recommendations, appears in the case specific summaries that appear at Exhibit "A." Based upon our review, it does not appear that the Fund purchased any of the above - referenced stocks during the respective class periods. Conclusion We hope that this information is informative and useful. We look forward to continuing to work on behalf of, and to protect the interests of, the Fund. If you have any questions or would like to discuss any of these matters, please do not hesitate to contact us. Shepherd, Finkelman, Miller & Shah, LLP .y e i s .y e i y`! Il rif L � t Medivation, Inc. April 15, 2010 A securities class action was filed in the United States District Court for the Northern District of California on behalf of purchasers of Medivation, Inc. ( "Medivation" or the "Company ") common stock during the period between July 17, 2008 and March 2, 2010 (the "Class Period "). The Complaint seeks remedies under the Securities and Exchange Act of 1934 (the "Exchange Ace').' This report includes a brief statement of the relevant facts, our legal analysis and finally, if appropriate, our recommendations. 1. ALLEGATIONS OF THE COMPLAINT Medivation is a biopharmaceutical company which focuses on the development of small molecule drugs for the treatment of Alzheimer's disease, Huntington's disease, and castration - resistant prostate cancer. The Complaint alleges that, during the Class Period, certain officers and /or directors of the Company made false and misleading statements regarding the Company's drug, Dimebon. Specifically, the Complaint asserts that, throughout the Class Period, defendants violated the federal securities laws by disseminating false and misleading statements to the investing public about the effectiveness of Dimebon as a treatment for Alzheimer's disease, making it impossible for shareholders to gain a meaningful or realistic understanding of the drug's progress toward Food and Drug Administration approval and market success. Then, on March 3, 2010, before the market opened, defendants were forced to publicly disclose that Dimebon did not meet primary and secondary goals in a Phase 3 trial for patients with mild to moderate Alzheimer's disease. As a result of this news, Medivation's stock plummeted $27.15 per share to close at $13.10 per share on March 3, 2010 — a one -day decline of 67% on volume of 45 million shares. II. LEGAL ANALYSIS We believe that claims under Sections 10(b) and 20(a) of the Exchange Act are quite strong. It appears that defendants made a number of false and /or misleading statements, while failing to disclose material adverse facts about the Company's business and, specifically, about the prospects of Dimebon. In addition, the case has been assigned to the Honorable Marilyn H. Patel, a well - respected jurist who is known for respecting the rights of shareholders and fairly evaluating claims of alleged securities fraud. The assignment of this case to Judge Patel, in our judgment, increases the likelihood that the parties will receive a fair hearing of the case on the merits. 111. RECOMMENDATIONS We believe that, during the Class Period, it is likely that we can prove violations of the Exchange Act and we recommend that our institutional clients seek lead plaintiff status in this matter if they suffered significant losses. If you have any questions regarding this recommendation, please do not hesitate to contact us. Applestein v. Medivation, Inc., et al., Civil Action No. 10 -0998 (N.D.Cal. - filed March 9, 2010) (Judge Marilyn H. Patel). Ormat Technologies, Inc. April I S, 2010 A securities class action was filed in the in United States District Court for the District of Nevada on behalf of a class consisting of all persons or entities who purchased the securities of Ormat Technologies, Inc. ( "Ormat" or the "Company ") between May 6, 2008 and February 24, 2010 (the "Class Period ").' The Complaint charges Ormat and certain of its officers and directors with violations of the Securities Exchange Act of 1934. This report includes a brief statement of the relevant facts, our legal analysis and finally, if appropriate, our recommendations. I. ALLEGATIONS OF THE COMPLAINT Ormat and its subsidiaries engage in the geothermal and recovered energy power business in the United States and internationally. The Company develops, builds, owns and operates geothermal and recovered energy -based power plants, and sells electricity and equipment for geothermal and recovered energy -based electricity generation. The Complaint alleges that throughout the Class Period, defendants knew or recklessly disregarded that their public statements concerning Ormat's business, operations and prospects were materially false and misleading. Specifically, defendants made false and /or misleading statements and /or failed to disclose: (1) that the Company was improperly continuing to capitalize costs for individual projects after Ormat had decided to abandon further exploration and development of individual projects instead of expensing those costs in the period in which any such determination was made; (2) that, as a result, the Company's financial results were overstated during the Class Period; (3) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles ( "GAAP "); (4) that the Company lacked adequate internal and financial controls; and (5), as a result of the above, that the Company's financial statements were materially false and misleading at all relevant times. On February 24, 2010, Ormat disclosed that the Board of Directors and Audit Committee of the Company, upon recommendation of management, had concluded that the Company's financial statements for the year ended December 31, 2008 (the "2008 Financial Statements ") contained in its Annual Report on Form 10 -K for the year then ended require restatement and should no longer be relied upon, and additionally, that the Company's prior related earnings and news releases and similar communications should also no longer be relied on to the extent they related to the 2008 Financial Statements. The Company announced that the restatement would show a change in the Company's accounting treatment for certain exploration and development costs. According to Ormat, these costs were capitalized on an area -of- interest basis using an accounting method that is analogous to the full cost method, and upon review of this accounting treatment in response to comment letters from the staff of the SEC, the Company concluded that this accounting treatment was inappropriate in certain respects. Ormat additionally indicated that the Company planned to revise its consolidated financial statements as of and for the three- and nine -month periods ended September 30, 2009. As a result of this news, Ormat shares declined $1.28 per share, or nearly 4 %, to close on February 24, 2010 at $31.90 per share, and further declined over the following two days to close on February 26, 2010 at $28.93 per share, on heavy trading volume. Over the course of these three days of trading, Ormat shares declined a total of 12.81 %, or $4.25 per share. 11. LEGAL ANALYSIS We believe that the claims under the Exchange Act are likely to be successful. The factual predicate for the claims asserted appear to be particularly strong and courts generally are more inclined to find securities fraud claims to be valid in cases of financial restatements. The case has been assigned to the Honorable Larry R. Hicks, who generally has been reported to be fair and even - handed in his approach to civil cases. Ill. RECOMMENDATIONS We believe that, during the Class Period, it is likely that we can prove violations of the Exchange Act. We recommend that our institutional clients seek lead plaintiff status in this matter if they suffered significant losses. If you have any questions regarding this recommendation, please do not hesitate to contact us. Schweitzer- Mauduit International, Inc. April 15, 2010 A securities class action was filed in the United States District Court for the Northern District of Georgia on behalf of purchasers of Schweitzer - Mauduit International, Inc. ( "Schweitzer" or the "Company ") common stock during the period between August 5, 2009 and February 10, 2010 (the "Class Period ").' The Complaint charges Schweitzer and certain of its officers and directors with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. This report includes a brief statement of the relevant facts, our legal analysis and finally, if appropriate, our recommendations. I. ALLEGATIONS OF THE COMPLAINT Schweitzer manufactures and sells paper and reconstituted tobacco products to the tobacco industry, as well as specialized paper products for use in other applications. The Complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. Specifically, during the Class Period, defendants allegedly misrepresented the strength of Schweitzer's competitive position and concealed problems with Schweitzer's most important customer. As a result of defendants' false and misleading statements, Schweitzer's stock traded at artificially inflated prices during the Class Period, reaching a high of $82 per share on January 14, 2010. As a result of this inflation, Schweitzer was able to consummate a secondary offering of 1.8 million shares of its stock at $60 per share in November 2009. On February 10, 2010, after the market closed, Schweitzer reported its fourth quarter and full year 2009 financial results. In the conference call following the release, defendants disclosed the Company's most important customer's decision to try competitive products and announced its filing of a patent lawsuit against competitors. As a result, Schweitzer's stock tumbled $23.58 per share to close at $46.65 per share on February 11, 2010, a one -day decline of nearly 34 %, on volume of nearly 14 million shares. According to the Complaint, the true facts, which were then known by or available to the defendants during the Class Period, were: (a) Schweitzer's competitive position was not adequately protected from foreign competition as to low ignition propensity ( "LIP ") paper, as such competitors were increasingly developing alternative methods to manufacture banded LIP paper; (b) the Company's most important customer was not in agreement with Schweitzer as to a license agreement between the two companies; and (c) the Company's competitive position was much more precarious than represented by defendants and the efforts by other manufacturers to invade Schweitzer's territory were growing. II. LEGAL ANALYSIS We believe that the claims under the Securities Act and Exchange Act are unlikely to be successful. The factual predicate for the claims asserted does not appear to be strong and the Complaint implicates difficult questions regarding intellectual property rights, which, in our judgment, may be difficult to utilize as a basis for establishing claims of securities fraud. In addition, the case has been assigned to the Honorable Timothy C. Batten, Sr., who has been reported to be neither particularly fair nor sympathetic to the interests of civil litigants that are challenging corporate interests. The assignment of this case to Judge Batten, in our judgment, increases the likelihood that the case will be unsuccessful on the merits. Ill. RECOMMENDATIONS We believe that, during the Class Period, it is possible (but not likely) that we can prove violations of the Securities Act and Exchange Act. We do not recommend that our institutional clients seek lead plaintiff status in this matter. We, of course, will continue to monitor this litigation and report on any developments that affect your interests. If you have any questions regarding this recommendation, please do not hesitate to contact us. City of Pontiac General Employees' Retirement System v. Schweitzer - Mouduit International, Inc., et al., Civil Action No. 10-00711 (N.D.Ga. -filed March 11. 2010) (Judge Timothy C. Batten, Sr.). Cell Therapeutics, Inc. April I S, 2010 A securities class action was filed in the United States District Court for the Western District of Washington on behalf of a class consisting of all persons or entities who purchased the common stock of Cell Therapeutics, Inc. ( "Cell Therapeutics" or the "Company ") between May 5, 2009 and February 8, 2010 (the "Class Period "). The Complaint seeks remedies under the Securities Exchange Act of 1934 ( "Exchange Act ").' This report includes a brief statement of the relevant facts, our legal analysis and finally, if appropriate, our recommendations. 1. ALLEGATIONS OF THE COMPLAINT Cell Therapeutics is a biopharmaceutical company that develops, acquires and commercializes oncology products for the treatment of cancer. The Complaint charges Cell Therapeutics and certain of the Company's executive officers with violations of federal securities laws. The Company is developing pixantrone, a Phase III single -agent clinical trial product for the treatment of non - Hodgkin's lymphoma and various other hematologic malignancies, solid tumors and immunological disorders. Pixantrone was being developed under a Special Protocol Assessment (SPA) — an agreement between the Company and the U.S. Food & Drug Administration (FDA) concerning the design and size of clinical trials intended to form the primary basis of an efficacy claim for a new drug application. The Complaint alleges that, throughout the Class Period; defendants knew or recklessly disregarded that their public statements concerning Cell Therapeutics' business, operations and prospects were materially false and misleading. Specifically, the Complaint alleges that defendants made false and /or misleading statements and /or failed to disclose material adverse information concerning pixantrone, including: (a) that the SPA was invalidated in March 2008; (b) that the Company's pixantrone study enrolled a large number of patients who did not suffer from aggressive non - Hodgkin's lymphoma; (c) that pixantrone was cardiotoxic; and (d), as a result of the foregoing, that defendants lacked a reasonable basis for their positive statements about the Company's business, operations and prospects. On February 8, 2010, the FDA issued a Briefing Document assessing pixantrone in advance of a February 10, 2010 advisory meeting. The agency stated that the Company's SPA was invalidated in March 2008 and that the pixantrone study results were not meeting the FDA's standards for approval. In response to this news, the stock of Cell Therapeutics fell by 39% in one day of trading. III. LEGAL ANALYSIS We believe that claims under the Exchange Act are reasonably strong, even though there may be certain "truth on the market" defenses available to defendants. The case appears likely to be assigned to the Honorable Robert S. Lasnik, who is an excellent jurist who appears to be committed to protecting the rights of shareholders. The probable assignment of the case to Judge Lasnik increases the likelihood that any lead plaintiff will be successful in our judgment. 111. RECOMMENDATIONS We believe that, during the Class Period, it is likely that we can prove violations of the Exchange Act. Since the amount of total market losses are relatively small and in light of certain potentially applicable defenses, we only recommend that our institutional clients consider seeking lead plaintiff status in this matter if they suffered extremely significant losses. any questions regarding this recommendation, please do not hesitate to contact us. If you have I Sahbagh Y. Cell Therapeutics Inc., et al., Civil Action No. 10- 00414(W.D.Wa. - filed March 12, 20 10) (Magistrate Judge Brian A Tsuchida and Judge Robert S. Lasnik). St. Jude Medical, Inc. April 15, 2010 A securities class action was filed in the United States District Court for the District of Minnesota on behalf of purchasers of the common stock of St. Jude Medical, Inc. ( "St. Jude" or the "Company ") between April 22, 2009 and October 6, 2009 (the "Class Period ").' The Complaint charges St. Jude and certain of its officers and directors with violations of the Securities Exchange Act of 1934. This report includes a brief statement of the relevant facts, our legal analysis and finally, if appropriate, our recommendations. 1. ALLEGATIONS OF THE COMPLAINT St. Jude develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. The Complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company's true financial condition, business and prospects. Specifically, the Complaint alleges that defendants failed to disclose: (i) that the Company was experiencing a slowdown in demand for its products, as hospitals reduced purchases and delayed purchasing decisions; (ii) that the Company was not receiving anticipated orders for cardiac rhythm management devices; and (iii) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its earnings and prospects. On October 6, 2009, St. Jude issued a press release announcing "preliminary third quarter results" for the period ending October 3, 2009. The press release reported that the Company was reducing its earnings guidance for the completed third quarter. In response to this announcement, the price of St. Jude common stock declined from $38.24 per share to $33.40 per share on extremely heavy trading volume. II. LEGAL ANALYSIS We believe that the claims under the Exchange Act are unlikely to be successful. The factual predicate for the claims asserted do not appear to be particularly strong. In addition, the case has been assigned to the Honorable Joan N. Ericksen, who generally has been reported to be pro- business in civil cases and not particularly sympathetic to the interests of civil litigants. The assignment of this case to Judge Ericksen, in our judgment, increases the likelihood that the case will be unsuccessful on the merits. III. RECOMMENDATIONS We believe that, during the Class Period, it is possible (but not likely) that we can prove violations of the Exchange Act. We do not recommend that our institutional clients seek lead plaintiff status in this matter. We, of course, will continue to monitor this litigation and report on any developments that affect your interests. If you have any questions regarding this recommendation, please do not hesitate to contact us. I City of Taylor Police and Fire Retirement System v. St. Jude Medical, Inc., et al., Civil Action No. 10 -00851 (D.Mn. - filed March 18, 2010) (Judge Joan N. Ericksen). Athenahealth, Inc. April 15, 2010 A securities class action was filed in the United States District Court for the District of Massachusetts on behalf of a class consisting of all persons or entities who purchased the securities of athenahealth, Inc. ( "Athena" or the "Company ") between October 29, 2009 and February 25, 2010 (the "Class Period "). The Complaint seeks remedies under the Securities Exchange Act of 1934 ( "Exchange Act ").' This report includes a brief statement of the relevant facts, our legal analysis and finally, if appropriate, our recommendations. 1. ALLEGATIONS OF THE COMPLAINT Athena provides Internet -based business services for medical practices in the United States. The Complaint alleges that Athena and certain top officers and directors made materially false and misleading representations in the Company's financial statements from 2005 through 2008 and in its quarterly financial statements for 2008 and the first three quarters of 2009. On February 25, 2010, after the markets closed, Athena announced that its previous financial statements could no longer be relied upon due to the Company's methodology for calculating implementation revenue and that it would likely restate its prior financial statements. The Company's stock fell almost 13% on the news, from a close of $43.52 on February 25, 2010 to a close of $37.96 on February 26, 2010. In a March 15, 2010 news release, the Company announced that it needed to amortize its service implementation revenue over a 12 -year period — the time it expects to do business with a new customer — rather than a single year, as it had done previously. As a result, Athena announced it was restating its financial results for fiscal years 2005 through 2008, as well as 2008 interim quarters and the first three quarters of 2009. During the Class Period, certain Athena insiders profited by more than $7.8 million by selling Company securities, while overstating revenues and earnings in violation of Generally Accepted Accounting Principles ( "GAAP "). Furthermore, the Complaint alleges that the Company's internal auditors were also aware of the revenue amortization practices, which were in clear violation of GAAP, during the Class Period. 11. LEGAL ANALYSIS We believe that claims under the Exchange Act are quite strong in this case. The case has been assigned to The Honorable George A. O'Toole, Jr., who is considered to be an excellent and fair - minded jurist. In light of the nature of the restatement at issue, including the magnitude of the restatement and the number of years impacted, as well as the insider selling discussed above, we believe that the likelihood of success on the merits in this case is quite high. III. RECOMMENDATIONS We believe that, during the Class Period, it is likely that we can prove violations of the Exchange Act and we recommend that our institutional clients seek lead plaintiff status in this matter if they suffered significant losses. If you have any questions regarding this recommendation, please do not hesitate to contact us. Casula v. athenahealth, Inc., et al., Civil Action No. 10 -00477 (D.Mass. - filed March 19, 2010) (Judge George A. O'Toole, Jr.). AlvUG Pharmaceuticals, Inc. April 15, 2010 A securities class action was filed in the United States District Ticker AMAG Court for the District of Massachusetts on behalf of a class consisting of all purchasers of the common stock of AMAG Pharmaceuticals, Inc. ( "AMAG" or the CUSIP 00163U 106 "Company ") in the Company's secondary public offering ( "Secondary Offering ") on or about anus 21, 2010. The Complaint seeks remedies under the Securities January P Act of 1933 "Securities Act").' This report includes a brief statement of the 041-_ relevant facts, our legal analysis and finally, if appropriate, our recommendations. Business Location Lexington, MA 1. ALLEGATIONS OF THE COMPLAINT,K. rt. AMAG is a biopharmaceutical company engaged in the development and commercialization of therapeutic iron compounds to treat anemia worldwide. According to the Complaint, on or about January 21, 2010, the Registration Class Period 1.2 1.10 to 3.18.10 Statement (the "Registration Statement ") with respect to the Secondary Offering became effective and 3.6 million shares of AMAG common stock were sold to the public at $48.25 per share, thereby raising more than $173 million. The Complaint alleges that the Registration Statement failed to disclose that users of the Company's primary drug, Feraheme, had suffered adverse reactions, with some Lead Plaintiff 5.18.1 O requiring hospitalization. On February 4, 2010, Carol Werther, a Summer Street Deadline analyst, downgraded AMAG from buy to neutral. In a note to clients she wrote, "We are aware of several patients hospitalized with anaphylactiod reactions to Feraheme [and] [w]e are aware of one death that may or may not be directly related to Feraheme." On disclosure of this news, AMAG's stock fell over $7.00 per share to close at $38.12 per share. The Complaint also alleges that the Registration Statement failed to disclose that the effect of the Company's rebate program would be to front load sales into the fourth quarter, causing sales to drop off after the Secondary Offering was completed. On this disclosure, AMAG's stock price once again declined, closing on March I at $34.17 per share, down $4.02 from the previous day's closing price of $38.19. 11. LEGAL ANALYSIS We believe that claims under the Securities Act are reasonably strong in this case. In particular, the claims related to AMAG's front - loading of its rebate program and resulting manipulation of sales in the fourth quarter of 2009 appear to have significant merit. The case has been assigned to The Honorable Nathaniel M. Gorton, who is generally recognized as a fair and efficient jurist, thereby rendering the case more attractive than other similar cases from a potential litigant's perspective. Ill. RECOMMENDATIONS We believe that, during the Class Period, it is quite likely that we can prove violations of the Securities Act and we recommend that our institutional clients seek lead plaintiff status in this matter if they suffered significant losses. If you have any questions regarding this recommendation, please do not hesitate to contact us. Silverstrand Investments v. AMAG Pharmaceuticals, Inc., et al., Civil Action No. 10 -10470 (D. Mass. -filed March 18, 2010) (Judge Nathaniel M. Gorton). `? Fuqi International, Inc. April I S, 2010 A securities class action was filed in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of Fuqi International, Inc. ("Fuqi" or the "Company ") between May 15, 2009 and March 16, 2010 (the "Class Period "), including purchasers of Fuqi common stock in, or traceable to, the Company's July 22, 2009 stock offering (the "Secondary Offering "). The Complaint seeks remedies under the Securities Act of 1933 ( "Securities Act") and the Securities Exchange Act of 1934 ( "Exchange Act").' This report includes a brief statement of the relevant facts, our legal analysis and finally, if appropriate, our recommendations. 1. ALLEGATIONS OF THE COMPLAINT The Company designs, develops, promotes, and sells precious metal jewelry in the People's Republic of China and is headquartered in China. The Complaint names Fuqi, as well as certain of the Company's executive officers and directors and the underwriters of the Secondary Offering, as defendants. The Complaint alleges that during the Class Period, defendants made false and /or misleading statements and /or failed to disclose the truth concerning the Company's financial results in that: (1) the Company's publicly reported cost of sales was materially understated during the Class Period; (3) the Company's publicly reported gross profit and net income were materially overstated during the Class Period; (4) contrary to defendants' Class Period representations, the Company lacked adequate internal and financial controls; and (5) that, as a result of the above, the Company's publicly reported financial statements were materially false and misleading at all relevant times. In addition, the Complaint alleges that the Prospectus issued by the Company in connection with the Secondary Offering contained, and incorporated by reference therein, the materially false and misleading statements relating to the Company's cost of sales, gross profit and net income for the quarter ending March 31, 2009. On March 16, 2010, Fuqi revealed that it found accounting errors relating to the Company's inventory and cost of sales during the Class Period that caused it to overstate gross profit and net income for the first nine months of 2009. As a result, Fuqi announced it had delayed the filing of its annual report on Form 10 -K pending the Company's completion of analysis and evaluation of the potential errors on the previously issued quarterly financial statements for 2009. On this news, Fuqi shares plummeted more than 35 %, to close at $11.90 per share on March 17, 2010, on extremely heavy trading volume. II. LEGAL ANALYSIS We believe that claims under the Securities Act and the Exchange Act are quite strong. It appears that defendants made a number of false and /or misleading statements, while failing to disclose material adverse facts about the Company's business and its margins. The case has been assigned to the Honorable Richard J. Sullivan, a respected (albeit conservative) jurist with respect to the rights of shareholders. Ill. RECOMMENDATIONS We believe that, during the Class Period, it is likely that we can prove violations of the Securities Act and Exchange Act. We recommend that our institutional clients seek lead plaintiff status in this matter if they suffered significant losses. If you have any questions regarding this recommendation, please do not hesitate to contact us. C O E 0 0- 7/112009 9112009 11/012009 1213112009 1212010 Yang v. Fuqi International, Inc., et al., Civil Action No. 10 -02654 (S.D.N.Y. - filed March 26, 2010) (Judge Richard J. Sullivan). Addus HomeCare Corporation April 15, 2010 A securities class action was filed in the United States District Court for the Northern District of Illinois on behalf of a class consisting of all persons or entities who, purchased or otherwise acquired Addus HomeCare Corporation ( "Addus" or the "Company ") common stock pursuant and /or traceable to the Registration Statement and Prospectus (collectively, the "Registration Statement ") issued in connection with the Company's October 27, 2009 initial public offering (the "IPO ").' This report includes a brief statement of the relevant facts, our legal analysis and finally, if appropriate, our recommendations. I. ALLEGATIONS OF THE COMPLAINT Addus provides a broad range of social and medical services in the home, including personal care and assistance with daily living activities, skilled nursing and rehabilitative therapies and adult day care to individuals with special needs who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. The Complaint charges Addus and certain of the Company's executive officers and /or directors, among others, with violations of federal securities laws. The Complaint alleges that the Registration Statement was materially false and misleading and /or omitted facts necessary to make the statements made not misleading, including the following: (1) that the Company's accounts receivable included at least $1.5 million in aging receivables that should have been reserved for as such; and (2) that the Company's Home Health revenues were falling short of internal forecasts due to a slowdown in admissions from the Company's Integrated Services program due to the State of Illinois' effort to develop new procedures for integrating care. On March 18, 2010, after the market closed, the Company reported its financial results for the 2009 fiscal fourth quarter and year ending December 31, 2009, and reported a net loss of $3.7 million, or a loss of $0.48 per share for the fourth quarter. The Company indicated that Addus had to increase its bad debt reserve levels by $1.5 million, and that during the fourth quarter the Company's Home Health revenues were short of internal forecasts due to a slowdown in admissions from the Company's Integrated Services program due to the State of Illinois' effort to develop new procedures for integrating care. The following day, shares of the Company's stock declined $2.60 per share, or approximately 29 %, to close at $6.30 per share on March 19, 2010. This closing price represented a cumulative loss of $3.70, or 37 %, of the value of Addus shares at the IPO price of $10 per share, just months earlier. I1. LEGAL ANALYSIS We believe that it is possible that the claims asserted under Sections I I and IS of the Securities Act of 1933 could be successful. Although such claims are generally easier to prove under the '33 Act than under the Securities Exchange Act of 1934, the factual basis of the claims in this case appear relatively weak. In addition, the case has been assigned to the Honorable Virginia M. Kendall, a jurist who was a career prosecutor that reportedly is somewhat inexperienced with and unsympathetic to civil cases. The assignment of this case to Judge Kendall, in our judgment, decreases the likelihood that the lead plaintiff will be successful in this case. III. RECOMMENDATIONS Although we believe that it is possible that violations of the 1933 Securities Act can be established in this case, we do not recommend that our institutional clients seek lead plaintiff status in this case for the reasons discussed above. If you have any questions regarding this recommendation, please do not hesitate to contact us. Crotteau v. Addus Homecore Corp., Civil Action No. 10 -01937 (N.D.III. - filed March 26, 20 10) (fudge Virginia M. Kendall). ai q,'., The Hartford Financial Services Group April IS, 2010 A securities class action was filed in the United States District Court for the Southern District of New York on behalf of purchasers of The Hartford Financial Services Group, Inc. ( "The Hartford" or the "Company ") common stock during the period between December 10, 2007 and February 5, 2009 (the "Class Period "). The Complaint charges The Hartford and certain of its CUSIP officers and directors with violations of the Securities Exchange Act of 1934. This arc report includes a brief statement of the relevant facts, our legal analysis and finally, appropriate, our recommendations. I. ALLEGATIONS OF THE COMPLAINT The Hartford is one of the largest investment and insurance companies based in the United States. The Complaint alleges that, during the Class Period, defendants made materially false and misleading representations regarding the Company's business and prospects, including its capital position, investment risk and hedging program. Specifically, the Complaint alleges that defendants were aware of material undisclosed information which contradicted their public statements during the Class Period, including, but not limited to, the following: (a) the Company's regulatory capital position was weak and deteriorating throughout the Class Period; (b) the Company had built up massive exposure to losses from derivative investments, including credit default swap contracts, way beyond the "corporate bond" risk references included in The Hartford's quarterly conference calls with analysts; (c) the Company had leveraged its risk significantly throughout the Class Period through a securities lending program in which it invested the cash collateral it received from third -party lenders in extremely risky investments, including residential and commercial mortgage- backed securities; (d) the Company's hedging program was becoming increasingly expensive to maintain due to high volatility in the equity markets; (e) the Company's financial results were continuing to deteriorate to a much greater extent than represented due to its exposure to the U.S. real estate market and credit default swap contracts; (f) the Company had failed to maintain adequate internal controls to adequately report losses from investments on a timely basis; (g) the Company was not on track to achieve the 2008 core earnings per share forecasted for and by the Company and continually misrepresented the effect market movements would have on such earnings; and (h) the Company overstated its book value by not accruing for liabilities for repayment of workers' compensation insurance premiums consistent with what was actually justified. On February 5, 2009, after the markets closed, The Hartford was forced to report disastrous fourth quarter and 2008 year -end financial results. And, while defendants had repeatedly assured the market throughout the Class Period that the Company's capital position was sound and could fully support its current credit rating, that same day Moody's downgraded The Hartford's long -term senior debt rating and the Company's P &C and life insurance subsidiaries. As a result of this news, The Hartford's shares fell from $15.09 on February 5, 2009 to close at $12.68 per share on February 6, 2009. II. LEGAL ANALYSIS We believe that the claims under Sections 10(b) and 20(a) of the Exchange Act are reasonably strong. It appears that defendants made a number of false and /or misleadini. statements, while failing to disclose material adverse facts about the Company s business and, specifically, its investments and reserves. Our view of the strength of the case is tempered by the fact that a number of securities cases related to mortgage- backed security investments have proved unsuccessful. We also note, however, that the case has been assigned to the Honorable Naomi Riece Buchwald, a well - respected jurist who is extremely intelligent and is known for respecting the rights of shareholders and fairly evaluating claims of alleged securities fraud. The assignment of this case to Judge Buchwald, in our judgment, increases the likelihood that the parties will receive a fair hearing of the case on the merits. III. RECOMMENDATIONS We believe that, during the Class Period, it is likely that we can prove violations of the Exchange Act and we recommend that our institutional clients seek lead plaintiff status in this matter if they suffered significant losses. If you have any questions regarding this recommendation, please do not hesitate to contact us. Elf- I-Itil ill Business Location I Hartford, CT Class Period 1 12.10.07 to 2.5.09 Lead Plaintiff 5.31.10 Deadline Boston ScientitiC Corporation April 15, 2010 A securities class action was filed in the United States District Court for the District of Massachusetts on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Boston Scientific Corporation ( "Boston Scientific" or the :Company") during the period from April 20, 2009 to March 12, 2010 (the "Class Period "). The Complaint seeks remedies under the Securities and Exchange Act of 1934 ( "Exchange Ace').' I. ALLEGATIONS OF THE COMPLAINT Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices, including products that focus on the treatment of cardiac arrhythmias and heart failure. The Complaint alleges that Boston Scientific and certain officers and directors failed to disclose that: (i) sales and demand for BSX's Cardiac Rhythm Management ( "CRM ") products had been materially inflated by the payment of illegal and improper inducements to health care professionals; (ii) a material portion of the Company's reported CRM revenues resulted from the sale of products which had been manufactured without required FDA approval; (iii) demand for the CRM products had weakened due to the curtailment of illegal payments; and (iv) that there were defects in the headers of certain of the Company's implantable cardiac defibrillator ( "ICD ") products such that Defendants' statements about CRM sales in general and sales of ICDs in particular were materially misleading. As a result of the alleged misrepresentations and /or omissions, it is alleged that the stock traded at inflated prices during the Class Period. When the truth was disclosed, the stock declined drastically and resulted in significant losses for investors. 11. LEGAL ANALYSIS We believe that claims under the Exchange Act are very strong in this case. The case has been assigned to The Honorable Patti B. Saris, who is considered to be an excellent and fair- minded jurist. We believe that the likelihood of success on the merits in this case is quite high. III. RECOMMENDATIONS We believe that, during the Class Period, it is likely that we can prove violations of the Exchange Act and we recommend that our institutional clients seek lead plaintiff status in this matter if they suffered significant losses. If you have any questions concerning this recommendation, please do not hesitate to contact us. City of Roseville Employees' Retirement System v. Boston Scientific Corporation, Civil Action No. 10 -10593 (D. Mass. - filed April 9, 2010 (Judge Patti B. Saris). :W; PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND DISBURSEMENTS May 10, 2010 • THE RESOURCE CENTERS, LLC. $ 3,250.00 (Bill for services for April and May 2010) • REGIONS MORGAN KEEGAN TRUST $ 1,957.11 (Custodial Fees for February and March 2010) • SUGARMAN & SUSSKIND $ 4,231.50 (Fees for legal services for February and March 2010) • BOGDAHN CONSULTING, LLC. $ 5,125.00 (1St Quarter 2010 Monitoring Fee) • RBC GLOBAL ASSET MANAGEMENT $ 2,770.83 (1St Quarter 2010 Management Fee) • DAVIS HAMILTON JACKSON & ASSOCIATES $ 2,886.25 (1St Quarter 2010 Management Fee) • DANA INVESTMENT ADVISORS INC. $ 23,891.88 (1St Quarter 2010 Management Fee) • GABRIEL ROEDER SMITH & COMPANY $ 14,950.00 (Bill for Valuation; Employee Benefit, Share and DROP Account Statements; 1 Benefit calculation; Impact Statement; and 15 -year projection of required Contributions) • EVAN BESTLAND $ 46,015.53 (Remaining Distribution of Share Account) Total Disbursements for Approval $ 105,078.10 (Trustee) (Trustee) Resource Centers, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Bill To Palm Beach Gardens Firefighters' Pension Fund Ship To Invoice Date Invoice # 5/1/2010 10663 P.O. Number Terms Rep Ship Via F.O.B. Project 5/1/2010 Quantity Item Code Description Price Each Amount Palm Beach Garde... Palm Beach Gardens Firefighters' Pension Fund Admin Fee for the month of May 2010 1,625.00 1,625.00 Total s1,625.00 Resource Centers, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Bill To Palm Beach Gardens Firefighters' Ship To Invoice Date Invoice # 3/31/2010 1 10625 P.O. Number Terms Rep Ship Via F.O.B. Project 3/31/2010 Quantity Item Code Description Price Each Amount Palm Beach Garde... Palm Beach Gardens Firefighters' Pension Fund for the month of April 2010 1,625.00 1,625.00 Total x1,625.00 REGIONS MORGAN KEEGAN Post Office Box 12385 Birmingham, Alabama 35202 -2385 STATEMENT OF TRUSTEES FEES INVOICE DATE 04/09/2010 ACCOUNT # 3320005077 ACCOUNT NAME: PB GARDENS FIRE J. SCOTT BAUR TEGRIT PLAN ADMINISTRATORS 4360 NORTHLAKB BLVD, SUITE 206 PALM BEACH GARDEN FL 33410 MARKET VALUE PERIOD ENDING 03/31/2010 29,782,887.30 0.0000083333 24,818.97 24,818.97 $ 24,818.97 FEE CALCULATION DETAIL 03/01/2010 - 03/31/2010 ITEM AMOUNT -------------------------- -- - - -- ------ - - - - -- DISCOUNT: PERIOD ENDING 03/31/2010 23,826.21 - TOTAL $ 23,826.21- SUMMARY OF FEE CALCULATION DETAIL +rrrr + +r + + + #wrw ++ + + + +r+r + +rtr +w +wr +rrwrw wwwwwrwrwrww+ + + + +wrwwwr +w+ ITEM AMOUNT -------- ------------------ - - - - -- ------ - - - - -- MARKET VALUE 24,818.97 DISCOUNT 23,826.21 - TOTAL AMOUNT DUE FOR CURRENT PERIOD $ 992.76 FOR FEE CALCULATION PERIOD 03/01/2010 - 03/31/2010 CONSOLIDATED ACCOUNT PRORATION FOR MASTER ACCOUNT M21485 PALM BCH GARDENS APR 15 2010 ACCOUNT INVOICE NUMBER 59832 $ 1,957.11 PERCENTAGE SUMMARY OF ACCOUNT CHARGE /BILL wrwwwrwr +wwrr +wrw wwwwwwwwwwwwwwwwwwwwwww wwwrrwwwwwrww rwww +wwww +www GARDENS DROP PREVIOUS BALANCE 1,912.18 BILL PAYMENTS RECEIVED: 947.83 - 3320005077 CURRENT FEE: 992.76 GARDENS FIRE BALANCE DUE $ 1,957.11 BILL FEE CALCULATION DETAIL 03/01/2010 - 03/31/2010 rr : +r + + + + + +r + +r +w wrwwwwwwwrewww :wrwwww ++ wrrwwwwwwrwww + +r ++ + + + + : + ++ DESCRIPTION/ RATE FEE TOTAL BASIS TO A/C MARKET VALUE PERIOD ENDING 03/31/2010 29,782,887.30 0.0000083333 24,818.97 24,818.97 $ 24,818.97 FEE CALCULATION DETAIL 03/01/2010 - 03/31/2010 ITEM AMOUNT -------------------------- -- - - -- ------ - - - - -- DISCOUNT: PERIOD ENDING 03/31/2010 23,826.21 - TOTAL $ 23,826.21- SUMMARY OF FEE CALCULATION DETAIL +rrrr + +r + + + #wrw ++ + + + +r+r + +rtr +w +wr +rrwrw wwwwwrwrwrww+ + + + +wrwwwr +w+ ITEM AMOUNT -------- ------------------ - - - - -- ------ - - - - -- MARKET VALUE 24,818.97 DISCOUNT 23,826.21 - TOTAL AMOUNT DUE FOR CURRENT PERIOD $ 992.76 FOR FEE CALCULATION PERIOD 03/01/2010 - 03/31/2010 CONSOLIDATED ACCOUNT PRORATION FOR MASTER ACCOUNT M21485 PALM BCH GARDENS APR 15 2010 ACCOUNT NAME PERCENTAGE AMOUNT CHARGE /BILL FEE 2850000097 PB GARDENS DROP 0.473086008 4.70 BILL TO A/C 3320005077 3320005077 PB GARDENS FIRE 15.10598571% 149.97 BILL 3320010132 PB GARDENS FREED 6.493728068 64.47 BILL TO A/C 3320005077 3350000088 PB GARD FIRE EQ 26.50851205% 263.17 BILL TO A/C 3320005077 3350000097 PB GARD FIRE FXD 15.339423768 152.28 BILL TO A/C 3320005077 3350000104 PB GARD FIRE AGN 14.21836808% 141.15 BILL TO A/C 3320005077 3350000113 PB GAR DANA GRTH 21.86089634% 217.02 BILL TO A/C 3320005077 REGIONS MORGAN KEEGAN Post Office Box 12385 Birmingham, Alabama 35202 -2385 STATEMENT OF TRUSTEES FEES INVOICE DATE 04/09/2010 2 ACCOUNT NAME PERCENTAGE MARKET VALUE 2850000097 PB GARDENS DROP 0.473086008 140,898.67 3320005077 PB GARDENS FIRE 15.10598571% 4,498,998.70 3320010132 PB GARDENS FREED 6.49372806% 1,934,019.71 3350000088 PB GARD FIRE EQ 26.50851205% 7,895,000.27 3350000097 PB GARD FIRE FXD 15.33942376% 4,568,523.29 3350000104 PB GARD FIRE AGN 14.21836808% 4,234,640.54 3350000113 PB GAR DANA GRTH 21.86089634% 6,510,806.12 FEES ARE DUE WITHIN 120 DAYS OF THE INVOICE DATE. ANY FEE NOT PAID WILL BE CHARGED TO THE TRUST. IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT CINDY FARROW AT 813 - 639 -3411 REGIONS MORGAN KEEGAN Post Office Box 12385 Birmingham, Alabama 35202 -2385 STATEMENT OF TRUSTEES FEES INVOICE DATE 03/11/2010 ACCOUNT # 3320005077 ACCOUNT NAME: PB GARDENS FIRE J. SCOTT BAUR TEGRIT PLAN ADMINISTRATORS 4360 NORTHLUM BLVD, SUITE 206 PALM BEACH GARDEN FL 33410 MARKET VALUE PERIOD ENDING 02/28/2010 28,930,612.97 0.0000083333 24,108.75 24,108.75 $ 24,108.75 FEE CALCULATION DETAIL 02/01/2010 - 02/28/2010 ITEM AMOUNT ----------------------- --- - - - - -- ------ - - - - -- DISCOUNT: PERIOD ENDING 02/28/2010 23,144.40 - TOTAL $ 23,144.40- SUMMARY OF FEE CALCULATION DETAIL ITEM AMOUNT -------------------------- - - - - -- ------ - -- - -- MARKET VALUE 24,108.75 DISCOUNT 23,144.40 - TOTAL AMOUNT DUE FOR CURRENT PERIOD $ 964.35 FOR FEE CALCULATION PERIOD 02/01/2010 - 02/28/2010 CONSOLIDATED ACCOUNT PRORATION FOR MASTER ACCOUNT M21485 PALM BCH GARDENS (' F 1VFp MAR 17 7010 ACCOUNT INVOICE NUMBER 58975 $ 1,912.18 PERCENTAGE SUMMARY OF ACCOUNT CHARGE /BILL FEE 2850000097 PB GARDENS DROP PREVIOUS BALANCE 3,691.15 BILL PAYMENTS RECEIVED: 2,743.32 - 3320005077 CURRENT FEE: 964.35 GARDEN-;' FIRE BALANCE DUE $ 1,912.18 BILL FEE CALCULATION DETAIL 02/01/2010 - 02/28/2010 3320010132 PB DESCRIPTION / RATE FEE TOTAL BASIS TO A/C MARKET VALUE PERIOD ENDING 02/28/2010 28,930,612.97 0.0000083333 24,108.75 24,108.75 $ 24,108.75 FEE CALCULATION DETAIL 02/01/2010 - 02/28/2010 ITEM AMOUNT ----------------------- --- - - - - -- ------ - - - - -- DISCOUNT: PERIOD ENDING 02/28/2010 23,144.40 - TOTAL $ 23,144.40- SUMMARY OF FEE CALCULATION DETAIL ITEM AMOUNT -------------------------- - - - - -- ------ - -- - -- MARKET VALUE 24,108.75 DISCOUNT 23,144.40 - TOTAL AMOUNT DUE FOR CURRENT PERIOD $ 964.35 FOR FEE CALCULATION PERIOD 02/01/2010 - 02/28/2010 CONSOLIDATED ACCOUNT PRORATION FOR MASTER ACCOUNT M21485 PALM BCH GARDENS (' F 1VFp MAR 17 7010 ACCOUNT NAME PERCENTAGE AMOUNT CHARGE /BILL FEE 2850000097 PB GARDENS DROP 0.45223352% 4.36 BILL TO A/C 3320005077 3320005077 PB GARDEN-;' FIRE 15.41420361% 148.65 BILL 3320010132 PB GARDENS FREED 6.68501041% 64.47 BILL TO A/C 3320005077 3350000088 PB GARD FIRE EQ 25.79892849% 248.79 BILL TO A/C 3320005077 3350000097 PB GARD FIRE FXD 15.663833938 151.05 BILL TO A/C 3320005077 3350000104 PB GARD FIRE AGN 14.65165859% 141.29 BILL TO A/C 3320005077 3350000113 PB GAR DANA GRTH 21.334131458 205.74 BILL TO A/C 3320005077 REGIONS MORGAN KEEGAN Post Office Box 12385 Birmingham, Alabama 35202 -2385 STATEMENT OF TRUSTEES FEES INVOICE DATE 03/11/2010 2 ACCOUNT NAME PERCENTAGE MARKET VALUE 2850000097 PB GARDENS DROP 0.45223352% 130,833.93 3320005077 PB GARDENS FIRE 15.414203618 4,459,423.59 3320010132 PB GARDENS FREED 6.68501041% 1,934,014.49 3350000088 PB GARD FIRE EQ 25.798928498 7,463,788.15 3350000097 PB GARD FIRE FXD 15.663833938 4,531,643.17 3350000104 PB GARD FIRE AGN 14.651658598 4,238,814.64 3350000113 PB GAR DANA GRTH 21.334131458 6,172,095.00 FEES ARE DUE WITHIN 120 DAYS OF THE INVOICE DATE. ANY FEE NOT PAID WILL BE CHARGED TO THE TRUST. IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT CINDY FARROW AT 813 - 639 -3411 Robert A. Sugarman Howard S. Susskind Kenneth R. Harrison, Sr. D. Marcus Braswell, Jr. Pedro A. Herrera Ivelisse Berio- LeBeau Noah S. Warman SUGARMAN & SUSSKIND PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW April 7, 2010 City of Palm Beach Gardens Firefighters' Pension Fund c/o Margaret M. Adcock, Administrator The Pension Resource Center, Inc. 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, Florida 33410 CURRENT FEES: CURRENT COSTS: PREVIOUS BALANCE: PAYMENTS RECEIVED: CREDIT.- CREDIT` 3,519.75 0.00 4,844.25 3,277.50 -ck# 158150 712.50 - 142.50- TOTAL AMOUNT DUE: 4,231.50 100 Miracle Mite Suite 300 Coral Gables, Florida 33134 (305) 529 -2801 Broward 763 -2566 Toll Free 1- 800 -329 -2122 Facsimile (305) 447 -8115 is , 0C SUGARMAN & SUSSKIND 100 Miracle Mile Suite 300 Coral Gables, Florida 33134 Telephone: 305 -529 -2801 Fax: 305 - 447 -8115 www.sugarmansusskind.com City of Palm Beach Gardens Firefighters' Pension Fund Go Margaret M. Adcock, Administrator The Pension Resource Center, Inc. 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens FL 33410 Client:Matter PBGF:ACCT In Reference To: Accountant's Inquiry Letters Professional Services 3/10/2010 Review and respond e-mail actuary reference impact statement and forward 3/12/2010 Receipt and review of rep letter For professional services rendered Balance due April 07, 2010 Invoice # 66664 Hrs/Rate Amount 0.50 142.50 285.00/hr 0.25 71.25 285.00/hr 0.75 $213.75 $213.75 Client:Matter PBGF:ACTu In Reference To: Actuarial Services Professional Services Hrs /Rate Amount 3/5/2010 Research and draft e-mail actuary reference status of impact statement 0.50 142.50 285.00/hr For professional services rendered 0.50 $142.50 Previous balance $142.50 City of Palm Beach Gardens Firefighters' Pension Fund Page 2 Amount 3/5/2010 Payment -Thank You. Check No. 158150 ($142.50) Total payments and adjustments ($142.50) Balance due $142.50 Client:Matter PBGF:MEET In Reference To: Meeting Professional Services 3/15/2010 Prepare for meeting, Attend meeting For professional services rendered Previous balance 3/31/2010 Credit for 2.5 hours @ $285.00 hr per Robert A. Sugarman request. 3/31/2010 Payment -Thank You. Check No. 158150 Total payments and adjustments Balance due Client:Matter PBGF:MISC In Reference To: Miscellaneous Hrs/Rate Amount 5.50 1,567.50 285.00/hr 5.50 $1,567.50 $3,063.00 ($712.50) ($1,638.75) ($2,351.25) $2,279.25 Professional Services Hrs /Rate Amount 3/12/2010 Email to Administrator regarding payment of Petruzzi monies. Review 0.85 242.25 ordinance. 285.00/hr For professional services rendered 0.85 $242.25 City of Palm Beach Gardens Firefighters' Pension Fund Page 3 Amount Previous balance $570.00 3/5/2010 Payment -Thank You. Check No. 158150 ($570.00) Total payments and adjustments ($570.00) Balance due $242.25 Client:Matter PBGF:MNTS In Reference To: Minutes of Meetings Professional Services Hrs /Rate Amount 3/12/2010 Review and revise minutes for regular and special meetings 1.00 285.00 285.001hr For professional services rendered 1.00 $285.00 Balance due $285.00 Client:Matter PBGF:ORDN In Reference To: Ordinances Professional Services Hrs /Rate Amount 3/15/2010 Review and respond e-mail city attorney reference status of proposed 0.50 142.50 ordinance amendment 285.00/hr 3/26/2010 Research contacts with city attorney's office reference proposed ordinance 0.50 142.50 amendment 285.00/hr For professional services rendered 1.00 $285.00 Previous balance $142.50 City of Palm Beach Gardens Firefighters' Pension Fund Page 4 Amount 3/31/2010 Credit ($142.50) Total payments and adjustments Balance due $285.00 Client:Matter PBGF:PLAN In Reference To: Plan Professional Services 3/2/2010 Review and revise ordinance amendment and Telephone conference with actuary and city attorney office For professional services rendered Previous balance 3/31/2010 Payment - Thank You. Check No. 158150 Total payments and adjustments Balance due Client:Matter PBGF:SIPO In Reference To: Statement of Investment Policy Professional Services Hrs/Rate Amount 1.00 285.00 285.00/hr 1.00 $285.00 $783.75 OVA'A 7M ($783.75) $285.00 Hrs /Rate Amount 3/2/2010 Draft and forward e-mail consultant reference revised investment policy and 0.50 142.50 Telephone conference with consultant 285.00/hr 3/12/2010 Review e-mail consultant reference revisions to investment policy and 0.75 213.75 respond 285.00/hr City of Palm Beach Gardens Firefighters' Pension Fund 3126/2010 Review investment policy and update status with consultantr For professional services rendered Previous balance 3/31/2010 Payment - Thank You. Check No. 158150 Total payments and adjustments Balance due Page 5 Hrs/Rate Amount 0.50 142.50 285.00mr 1.75 $498.75 $142.50 ($142.50) ($142.50) $498.75 Robert A. Sugarman Howard S. Susskind Kenneth R. Harrison, Sr. O. Marcus Braswell, Jr. Pedro A. Herrera Ivelisse Berio- LeBeau Noah S. Warman SUGARMAN & SUSSKIND PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW March 9, 2010 City of Palm Beach Gardens Firefighters' Pension Fund c/o Margaret M. Adcock, Administrator The Pension Resource Center, Inc. 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, Florida 33410 CURRENT FEES: CURRENT COSTS: PREVIOUS BALANCE: PAYMENTS RECEIVED: 712.50 0.00 7,837.50 3,705.75 -ck# 152502 TOTAL AMOUNT DUE: 4,844.25 100 Miracle Mile Suite 300 Coral Gables, Florida 33134 (305) 529 -2801 Broward 763 -2566 Toll Free 1- 800 - 329 -2122 Facsimile (305) 447 -8115 RECEIVEO MAR 112010 SUGARMAN & SUSSKIND 100 Miracle Mile Suite 300 Coral Gables, Florida 33134 Telephone: 305 -529 -2801 Fax: 305 - 447 -8115 www.sugarmansusskind.com City of Palm Beach Gardens Firefighters' Pension Fund Go Margaret M. Adcock, Administrator The Pension Resource Center, Inc. 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens FL 33410 Client:Matter PBGF:ACTU In Reference To: Actuarial Services March 09, 2010 Invoice # 65798 Professional Services Hrs /Rate Amount 2/10/2010 Review and forward revised ordinance amendment to actuary for impact 0.50 142.50 statement 285.001hr For professional services rendered 0.50 $142.50 Balance due $142.50 Client:Matter PBGF:MEET In Reference To: Meeting Amount Previous balance $5,343.75 2/28/2010 Payment -Thank You. Check No. 152502 ($2,280.75) Total payments and adjustments ($2,280.75) Balance due $3,063.00 Client:Matter PBGF:MISC City of Palm Beach Gardens Firefighters' Pension Fund In Reference To: Miscellaneous Professional Services Page 2 Hrs /Rate Amount 2/10/2010 Draft consultant services agreement per direction of board 2.00 570.00 285.00/hr For professional services rendered 2.00 $570.00 Balance due $570.00 Client:Matter PBGF:ORDN In Reference To: Ordinances Amount Previous balance $712.50 2/28/2010 Payment - Thank You. Check No. 152502 ($570.00) Total payments and adjustments ($570.00) Balance due $142.50 Client:Matter PBGF:PLAN In Reference To: Plan Amount Previous balance $1,068.75 2/28/2010 Payment - Thank You. Check No. 152502 ($285.00) Total payments and adjustments ($285.00) Balance due $783.75 City of Palm Beach Gardens Firefighters' Pension Fund Client:Matter PBGF:SIPO In Reference To: Statement of Investment Policy Page 3 Amount Previous balance $712.50 2/28/2010 Payment - Thank You. Check No. 152502 ($570.00) Total payments and adjustments ($570.00) Balance due $142.50 THE BOGDAHN GROUP 340 West Central Avenue Suite 300 Winter Haven, FL 33880 Palm Beach Gardens Firefighters' Pension Email: Margie Adcock Email: Payment Group Invoice Date Invoice # 3/25/2010 5025 Description Amount Performance Evaluation and Consulting Services 2,000.00 1/1/2010- 3/31/2010 additional portfolio evaluation - domestic equity 625.00 additional portfolio evaluation - international equity 625.00 additional portfolio evaluation - international equity 625.00 additional portfolio evaluation - fixed income 625.00 additional portfolio evaluation - real estate 625.00 Balance Due $5,125.00 RBC Global Asset Management - 9 Margaret M. Adcock The Resource Centers, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens FL 33410 Invoice Number 13475 Invoice Date: 04/15/2010 Billing Period: 01/01/2010 - 03/3 1/20 10 Custodian Account Number: CF -RSY8 Account Number: P703000 INVESTMENT MANAGEMENT FEE For the Arrears Period of 01 /01/2010 to 03/31/2010 Account Name: City of Palm Beach Gardens Firefighters' Pension Trust Fund Ending Market Value for Account P703000: January 2010: 1,244,448.85 USD February 2010: 1,216,972.65 USD March 2010: 1,316,987.26 USD Average Market Value 1,259,469.59 USD Market Value Based Fees 1,259,469.59 @ 0.8800% x 90 / 360 Total Current Period Fees Total Amount Due Upon Receipt 2,770.83 2,770.83 USD 2,770.83 USD If you have any questions. please call Portfolio Administration at 612 - 376 -7151 or 1- 866 -759 -9083 or send an email to rbcgamusbilling@rbc.com. [Keep this portion for your financial records) Invoice Number: 13475 Invoice Date: 04/15/2010 Billing Period: 01/01/2010 - 03/31/2010 Custodian Account Number: CF -RSY8 Account Number: P703000 Account Name: City of Palm Beach Gardens Firefighters' Pension Trust Fund Wire Instructions: Bank: US Bank Payment Alailing Address: ABA: 091000022 RBC Global Asset Management (U.S.) Inc. Account: 1- 602 -3318 -3526 PO Box 9195 RBC Wealth Management Minneapolis, MN 55480 -9934 Reference: Invoice 13475 Amount Due 2,770.83 USD Remittance Amount USD dfait this portion with your payment. Thank you for your business. INVOICE# 22072 April 26, 2010 DAVIS HAMILTON JACKSON ASSOCIATESsLP. CITY OF PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND (3350000097) palmri Attn: Margie Adcock 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 DAVIS HAMILTON JACKSON & ASSOCIATES STATEMENT OF MANAGEMENT FEES For The Period January 1, 2010 through March 31, 2010 Portfolio Valuation with Accrued Interest as of 03 -31 -10 4,618,007 @ 0.250 % per annum Quarterly Management Fee TOTAL DUE AND PAYABLE none 5 HOUSTON CENTER 1401 WKINNEY, SUITE 1600 HOUSTON, TX 77010 -4035 TEL: (713) 853-2322 FAX: (713) 853 -2308 WWW.DHJA.COM $ 4,618,007.28 2,886.25 $ 2,886.25 $ 2,886.25 DANA INVESTMENT ADVISORS, INC. STATEMENT OF MANAGEMENT FEES 15- Apr -10 Margie Adcock Account: 715ca Administrator Pension Resource Centers 4360 Northlake Blvd Suite 206 Palm Beach Gardens, FL 33410 United States Billing Period: FROM 01/01/2010 TO 03/31/2010 Custodian Account #: 3350000113 Account #: 715ca - City of Palm Beach Gardens Fir Portfolio Value ............................ ............................... $6,518.634 Amount Due, PAYABLE UPON RECEIPT: ...................................... $10,902.95 Please sign & forward as necessary to custodian for payment Signature Dated FEE CALCULATION Amount Based % of Rate Amount Due Rate ARollede For Assets Under Management on Rate Applied Period (incl. adjustm.) 0.7500% On the first: 3,000,000 22,500.00 5,625.00 0.6000% On the remainder: 3,518,634 21,111.80 5,277.95 Total Fee: 43,611.80 0.25 10,902.95 If you have any questions or need further information please contact me - Jennifer @ (262)782 -3631 - Jennifer@Danalnvestment.com Make Checks Payable to: Dana Investment Advisors. Inc. Attn: Jennifer P.O. Box 1067 Brookfield. WI 53008 -1067 CIE. MAY 0 3 2010 DANA INVESTMENT ADVISORS, INC. STATEMENT OF MANAGEMENT FEES Margie Adcock Administrator Pension Resource Centers 4360 Northlake Blvd Suite 206 Palm Beach Gardens, FL 33410 United States Billing Period: FROM 01/01/2010 TO 03/31/2010 Custodian Account A: 3350000088 Account 4: 715ma - City of Palm Beach Gardens Fir Combined (Blend) Portfolio Value ............................................. For the Accounts: City of Palm Beach Gardens Firefighters' Retirement System - SC (715ma) City of Palm Beach Gardens Firefighters' Retirement System - LV (715mc) Amount Due, PAYABLE UPON RECEIPT: ..................................... . Please sign & forward as necessary to custodian for payment Signature Dated FEE CALCULATION Rate A Inn led: 0.7500% 0.6000% For Assets Under Management On the first: 3,000,000 On the remainder: 4,909,286 Total Fee: Amount Based % of Rate on Rate o o Iled period 22,500.00 29,455.71 51,955.71 0.25 15- Apr -10 Invoice No: 13742 Account: 715ma $7,909,286 $12,988.93 Amount Due fincl, adlustm.l 5,625.00 7,363.93 12,988.93 If you have any questions or need further information please contact me - Jennifer @ (262)782 -3631 - Jennifer @Danalnvestment.com Make Checks Payable to: Dana Investment Advisors. Inc. Attn: Jennifer P.O. Box 1067 Brookfield. W 53008 -1067 GDC Gabriel Roeder Smith & Company JConsultants & Actuaries One Towne Square Suite 800 Southfield, Michigan 48076 -3723 (248) 799 -9000 City of Palm Beach Gardens Firefighters' Pension Fund Pension Resource Center, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, Florida 33410 Attention: Ms. Margaret M. Adcock, Administrator Invoice 4/9/2010 111284 Dept. # 78009 Gabriel Roeder Smith & Company P.O. Box 78000 Detroit, Michigan 48278 -0009 OR ACH Payment to: Gabriel Roeder Smith & Company JP Morgan Chase, ABA #: 072000326 Account #: 0486723 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. 7010 Regular Annual Services for the period 10/1/2009 - 9/30/2010: 2678 -005 $8,200 The September 30, 2009 annual actuarial valuation determining contribution requirements for the fiscal year beginning October 1, 2010 submitted March 10, 2010. Newsletter and routine consultation by phone, letter, email and fax. March 15, 2009 meeting to discuss the actuarial valuation report. Correspondence with auditors dated January 15, 2010 Preparation of Page 6a submitted to City for inclusion in the State report. Individual member benefit statements as of September 30, 2009. 5500 Individual member share account statements as of September 30, 2009. $500 Individual member DROP account quarterly statements ($150 apiece) for calendar year 2009 $600 One (1) benefit calculation. $150 de minimis impact statement dated March 10, 2010 $500 Invoice Total $10,450 Paid to Date Client No. 2678 Amount Due $10,450 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. 7010 Gabriel Roeder Smith &Company JConsultants & Actuaries One Towne Square Suite 800 Southfield, Michigan 48076 -3723 (248) 799 -9000 City of Palm Beach Gardens Firefighters' Pension Fund Pension Resource Center, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, Florida 33410 Attention: Ms. Margaret M. Adcock, Administrator Invoice 4/9n010 111285 Dept. # 78009 Gabriel Roeder Smith & Company P.O. Box 78000 Detroit, Michigan 48278 -0009 OR ACH Payment to: Gabriel Roeder Smith & Company JP Morgan Chase, ABA #: 072000326 Account #: 0486723 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. Fifteen year projection of estimated required contributions for the City of Palm Beach Gardens Firefighters' Pension Fund in the event of closing the Plan and joining the Florida Retirement System (see fee quote of $4,500 dated January 19, 2010 and subsequent document dated February 19, 2010). 2678 -005 $4,500 Invoice Total $4,500 Paid to Date Client No. 2678 Amount Due $4,500 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. CITY OF PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND CHAPTER 175 PREMIUM TAX ALLOCATION Statement of benefits to Firefighters as of September 30, 2009 prepared for Bestland, Evan Social Security No.: XXX- XX4308 1. ACCOUNT BALANCE AS OF 10/1/2008 $80,331.33 (INCLUDES OCTOBER, 2008 SPECIAL DISTRIBUTION) 2. CHAPTER 175 ALLOCATION $4,966.85 (INCLUDES OCTOBER, 2009 SPECIAL DISTRIBUTION) 3. FORFEITURES AND DISTRIBUTIONS $40,165.67 4. INVESTMENT EARNINGS $1,099.54 5. PLAN EXPENSES 216.53 6. ACCOUNT BALANCE AS OF 9/30/2009 $46,015.53 7. VESTED PERCENTAGE AS OF 9/30/2009 100% 8. VESTED ACCOUNT BALANCE AS OF 9/30/2009 $46,015.53 Gabriel Roeder Sndth & Company 3, 1012010 GRS Gabriel Roeder Smith & Company One Towne Square 248.799.9000 phone Consultants & ALtUarlls Suite 800 248.799.9020 fax Southfield, MI 48076 -3723 www.gabrielrocdcr.corn April 12, 2010 Ms. Margaret Adcock, Administrator City of Palm Beach Gardens Firefighters' Pension Fund Pension Resource Center, LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, Florida 33410 Attention: Board of Trustees Re: Actuarial Fees for Palm Beach Gardens Firefighters' Pension Fund Dear Margie: Enclosed is a proposed amendment to the Palm Beach Gardens Firefighters' Pension Fund Actuarial Services Agreement for the next three fiscal years. Please contact me with any questions or comments. Respectfully submitted, a14 lam' Brad Lee Armstrong, A.S.A., E.A. BLA:bd Enclosure cc: Robert Sugarman AMENDMENT TO ACTUARIAL SERVICES AGREEMENT WITH THE BOARD OF TRUSTEES OF THE CITY OF PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND FEES AND COSTS Fiscal Year Ending September 30 2009 2010 2011 2012 Annual Valuation and Normal Consulting Services: (Paragraph 1 of original agreement) $7,900 $8,200 $8,200 $8,500 Benefit Computations and Quarterly DROP Account Statements per case: $ 150 $ 150 $ 150 $ 155 Supplemental Valuations and Non -de minimis Impact Statements: First Change $1,150 $1,200 $1,200 $1,250 Additional changes at same time 2"d & 3`d $ 600 each $ 625 each 4d' & above $ 425 each $ 450 each de minimis Impact Statements $ 500 $ 500 $ 625 each $ 650 each $ 450 each $ 475 each $ 500 $ 525 Individual member benefit statements $ 500 $ 500 $ 500 $ 525 Individual member share account statements $ 500 $ 500 $ 500 $ 525 All quoted prices are all inclusive. In other words, there will be no additional fees for the cost of materials, supplies, transportation, expenses, overhead, etc. Fees for other actuarial services will be quoted prior to commencement of any requested work not described above. Gabriel Roeder Smith & Company Palm Beach Gardens Firefighters' Pension Fund Disability Pension Review 2010 Type of Monthly Member DOB DOR Retirement Benefit Special Notes BIVINS, TOBY 12/9/1971 4/5/2008 LOD $2,968.20 BUSH, KATHLEEN 10/13/1958 7/2/2004 LOD $1,711.04 HODGKINS, RICHARD 10/18/1957 1/5/2000 LOD $1,834.15 Reviewed in 2003 -2005; IME in Oct 2004; Board continued disability benefit at 2 -28 -2005 meeting. MITCHELL, KEVIN 5/6/1969 2/22/1999 LOD $1,732.09 Reviewed in 2003 -2005; IME in Nov 2004; FCE in Sept 2005; Board continued disability benefit at 11 -28 -2005 meeting. WEAVER, DANIEL 6/28/60 10/14/2002 NLOD $1,299.02 Y AMENDMENT TO CUSTODIAL AGREEMENT Between CITY OF PALM BEACH GARDENS FIREFIGHTERS' RETIREMENT SYSTEM and AMSOUTH BANK THIS AMENDMENT is made to the Custodial Agreement dated the 3`d day of May, 2002, between CITY OF PALM BEACH GARDENS FIREFIGHTERS' RETIREMENT SYSTEM and AMSOUTH BANK. The Agreement is amended to read as follows: 1. Section 2 — Custodian's Duties and Obligations is hereby amended by adding the following underlined language to subparagraph k: Section 2 - CUSTODIAN'S DUTIES AND OBLIGATIONS: k. Custodian shall be responsible for the timely filing of all necessary proof of claims for any and all securities class actions involving securities held by the Custodian after May 16, 2002 on the trustees' behalf. In all other respects, the Custodial Agreement between the parties dated the 3rd day of May, 2002 remains unchanged. SIGNED in Palm Beach Gardens, Palm Beach County, Florida on this day of August, 2006. Attest: CITY OF PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND Ic By: . fitness Z airperson Witne G: \PSG F\CUST\CustodialAgreemen !/Amend men t -.doc Custodian: AMSOUTH BANK By: zf 0,/ Print Nam Unrf��i� L • �� Print Title: T2ze2r CITY OF PALM BEACH GARDENS FIREFIGHTERS' RETIREMENT SYSTEM AND AMSOUTH BANK CUSTODIAL AGREEMENT This Agreement made, executed and delivered, in triplicate, this day of 2002, by and between the Board of Trustees of the City of Palm Beach Gardens Firefi ters' Retirement System (the "Retirement System ") and AmSouth Bank, a banking corporation ( "Custodian "). WITNESSETH: WHEREAS, there is an established retirement fund known as the City of Palm Beach Gardens Firefighters' Retirement System; and WHEREAS, the Retirement System desires to appoint and designate AmSouth Bank as the custodian for the assets of the Retirement System, and additions thereto or changes therein, (the "Account "), and Custodian agrees to so act; and WHEREAS, the Retirement System wishes to deposit into a separate account maintained with Custodian (the "Account ") all assets of the Retirement System and, at its discretion, to make additional deposits into the Account of cash or other property (the "Additional Assets "), as well as to confer the other duties and obligations set forth herein. (The Retirement System's assets, the Additional Assets and all the property which may be held in the Account from time to time shall sometimes be referred to herein collectively as the "Assets "); and WHEREAS, the Retirement System may, from time to time, direct the Custodian to segregate the Assets into several separate investment funds (referred to herein individually as an "Investment Fund" and collectively as the "Investment Funds ") and further shall, for each Investment Fund, identify the investment manager (each an "Investment Manager" and collectively the "Investment Managers ") which shall have acknowledged that it is a fiduciary, who is authorized to direct the investment of the Assets of the Retirement System; and WHEREAS, the Custodian has agreed to accept the deposit of the Assets and to accept the duties and obligations hereinafter set forth, and otherwise agrees to the terms and conditions set forth herein; and WHEREAS, the Retirement System trustees represent that they have all requisite authority under the Palm Beach Gardens Code to enter into this Agreement, including the authority to designate investment managers and/or custodians, and the Retirement System represents that all actions required for the execution of this Agreement by the Retirement System and the appointment of Custodian have been duly taken: NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is hereby AGREED between the parties hereto as follows: 1. APPOINTMENT OF AMSOUTH BANK. The Retirement System hereby designates AmSouth Bank as the "Custodian" of the Account, and Custodian hereby accepts such appointment and agrees to marshal the Account and carry out the Retirement System's directions regarding the investment and reinvestment of assets of the Account. a. Custodian is hereby appointed as the custodian of all Assets held in the Investment Funds. Custodian may cause any stock certificates and other forms of securities held as Assets hereunder either to be held in its name, in the name of the Retirement System, in bearer form, or to be registered in the name of its nominee without disclosing or referring to the agency. When using a nominee registration, the liability or responsibility of Custodian shall neither increase nor decrease solely as a result of the use of such nominee name. b. Custodian may hold securities in bulk with certificates of the same class and issuer constituting assets of other accounts, and may use depositories for securities. C. Custodian shall be directed in writing or confirmed in writing by each Investment Manager of an Investment Fund as to the investment of short and intermediate term investments of cash awaiting investment or distribution, which investment must comply with the restrictions and limitations of Chapters 112 of the Florida Statutes and may include, without limitation, investments in United States Treasury Obligations, commercial paper, variable amounts notes, mutual funds or registered investment companies (to which the Custodian or any affiliate may serve as investment advisor, underwriter, manager, administrator, distributor, custodian, transfer agent or in any other capacity, for which the Custodian or any such affiliate may receive a fee from such fund or company). d. The Investment Manager responsible for the investment of the Investment Fund holding an Asset which is the subject of a tender, exchange, put or proxy, shall retain the right to exercise voting rights and to exercise all other rights pertaining to tenders, exchanges, puts, or proxies in connection with all Assets held thereunder, including without limitation any stock or other securities held thereunder, and to give Custodian written instructions as to how these rights shall be exercised. e. The Retirement System shall have the following authorities and responsibilities concerning any Investment Manager that it may appoint hereunder: (1) From time to time the Retirement System may designate one or more Investment Managers, who shall have the powers and authorities hereafter defined. (ii) The Retirement System may, by similar notice, modify or terminate such designation and authority from time to time. (iii) So long as, and to the extent that, any such designation is in effect, Custodian shall (i) establish a separate fund for each Investment Manager and shall invest, reinvest and retain the portion of the Assets assigned to that Investment Manager, and (ii) with respect to Assets in such Investment Fund shall follow any instructions received by it from such Investment Manager in accordance with the instructions received from such Investment Manager. f. Each Investment Manager is authorized to place the buy or sell orders with the brokers or other persons through whom such transactions shall be accomplished, pertaining to the Assets which is subject to the direction of the Investment Manager. g. Payment of the costs of the acquisition, sale or exchange of any security or other property shall be charged to such Investment Fund managed by the Investment Manager. h. All instructions from an Investment Manager (or from persons authorized by an Investment Manager) to the Custodian shall be in writing and shall be complete in all reasonable and necessary details. The Custodian may, in its discretion, accept directions by telephone or electronic communication confirmed in writing, or by any other means of communication which it believes to be genuine (including communications received through the facilities of an institutional delivery system of a depository). 2. CUSTODIAN'S DUTIES AND OBLIGATIONS. Custodian agrees to hold and safely keep such cash, stocks, certificates, bonds and other securities as may be delivered to it by or for the Account of the Retirement System, and to collect the income, interest and dividends paid in cash on the property held by it pursuant to this Agreement and credit same to the Account. Matured bonds and other securities shall be presented for payment by Custodian on the maturity date and the principal and income paid thereon shall be credited to the Account. a. Custodian agrees to hold, deal with and dispose of the Assets and the income derived therefrom in the manner as provided for herein. b. Custodian agrees to make such sales, subscriptions, investments and reinvestments as any Investment Manager may from time to time direct in writing. C. Custodian agrees to hold the assets in safekeeping. d. Custodian shall bear no risk, responsibility or financial exposure as to the value or suitability of any assets acquired or disposed by the Retirement System. 3 e. Custodian agrees to collect and credit to the Account all dividends, interest or other income or principal due or received by it in regard to the assets held hereunder and all proceeds from the sale of redemption of all Assets. f. Custodian agrees to submit on a timely basis debt obligations which may be redeemed by the issuer provided that Custodian received adequate actual notice of such premature redemption. g. Custodian agrees to deliver to the Investment Manager responsible for the investment of an Investment Fund holding an Asset which is the subject of a tender, exchange, put or proxy, all materials relating to the exercise of that tender, exchange, put or proxy, and to follow the written instructions given by the Investment Manager. Custodian agrees to follow the instructions which are received by it at least two full business days prior to the expiration of the period in which such tenders, exchanges or puts, may be exercised. Custodian will follow such instructions not received by it at least two full business days prior to the expiration of such period, but shall not be liable for damages if action on such instructions cannot be taken prior to the expiration of such period. h. Custodian shall make distributions to participants, including benefit payments. All requests will directed to the Custodian in writing and signed by the Retirement System setting forth the amount, method and time of payment, date of commencement, date of termination, social security number, last known address, and any other information necessary for the Custodian to carry out its responsibilities under applicable state and federal laws. The Custodian shall make the necessary filings with the Internal Revenue Service and appropriate state taxing agencies and shall timely provide each participant receiving payment with an appropriate IRS form. i. Pursuant to SEC Rule 1413-1, the Custodian shall furnish the Retirement System the name, address and share position to companies that issue securities held as Assets. The Custodian is authorized to disclose the Retirement System's name, address and share position. j. The custodian shall not be responsible for investment performance arising from its compliance with the instructions of the Retirement System or a designated investment manager. 3. PRINCIPAL CASH AND DIVIDENDS IN KIND. All principal cash or dividends in cash or in kind received or collected with respect to the property in this Account will be credited to the Account. 4. STATEMENTS. Statements of receipts, disbursements, other transactions and an inventory of all assets will be submitted to the Retirement System, its investment managers and consultant on a monthly basis. Custodian shall transmit and certify the accuracy of the information of the Account within forty -five (45) days after the plan year -end. E 5. INVESTMENT VALUATION. Custodian will prepare and furnish to the Retirement System a report of the assets in this Account showing units, description, carrying values, estimated income and estimated market values on a monthly basis. Such information will be on the form used for this purpose by Custodian and will show valuations as of the end of the month prior to date prepared. 6. AMENDMENT AND MODIFICATION. This Agreement may be altered, amended or modified at any time in such manner as may be mutually agreed upon between Custodian and the Retirement System. 7. WITHDRAWAL AND TERMINATION. The Retirement System may withdraw any or all of the property held hereunder by Custodian and either party hereto may terminate this Agreement upon receipt by the other party of written notice of such withdrawal or termination, at least ninety (90) days before its effective date if terminated by Custodian and at least thirty (30) days before its effective date if terminated by the Retirement Plan. Upon termination and the tender to Custodian of a proper receipt, Custodian shall transfer and deliver to the Retirement System or its designee all property then held hereunder. 8. AUTHORIZATION. The names and specimen signatures of individuals authorized by the Retirement System to execute and direct Custodian under this Agreement are set to be forth in the Certification of Authorized Signatures to be submitted from time to time by the Retirement System to Custodian. Custodian will rely on the so authorized individuals for all direction. Until further notice, one of the following signatures is required for direction: NAME SIGNATURE lease print or type) Number of signature(s) required: 1 In addition to the individuals named above, Custodian will also sell and purchase property in and for the Account as directed, in writing, by the Retirement System's Investment Managers only after receiving written authorization from the Retirement System authorizing said Investment Managers to give such direction on behalf of the Retirement System. The Retirement System may also authorize, in writing, Custodian to act upon the telephone instructions of the Retirement System's Investment Managers, to be confirmed in writing by the Investment Manager. 9. AGENTS AND COUNSEL. Custodian upon prior authorization by the Retirement System shall be entitled to employ suitable agents and counsel and to pay their reasonable expenses and compensation. 10. FEE AND EXPENSES. Custodian shall be entitled to fees for its services based on its fee schedule as attached on Exhibit A. Such fees or expenses shall be billed to the Retirement System quarterly. Custodian shall give the Retirement System at least six (6) months advance notice of any proposed fee increase. The fee schedule in effect on the date of this Agreement is attached hereto as Exhibit A and agreed to by the parties shall remain in effect for at least the first two (2) years of this agreement, provided that this fee guarantee shall not affect the right of either party to terminate this Agreement as provided herein. 11. FIDELITY BOND AND ERRORS AND OMISSIONS INSURANCE. Custodian shall maintain errors and omissions insurance of at least $5 million and a Fidelity Bond of at least $5 million and shall annually provide the Retirement System with proof that such insurance is in force and effect. 12. INVESTMENTS. The Account shall be fully invested at all times and no cash balances shall be held without interest if received before 1:00 p.m. Eastern time. Investments in money market funds and other short-term investments shall comply with the investment restrictions and limitations of Chapter 112 of the Florida Statutes. 13. QUALIFIED PUBLIC DEPOSITORY. Custodian warrants the assets will be held by its trust department and that as a trust company, Custodian meets the exemption under Chapter 280.03(2) and may serve as a custodian under Chapter 112 of the Florida Statutes. Custodian warrants that it will promptly notify the Retirement System, in writing, should its status change during the term of this Agreement. 14. FIDUCIARY STATUS. Custodian acknowledges that in accordance with this agreement, it is a fiduciary with respect to the Board of Trustees and the Retirement System and is both a fiduciary and a "named fiduciary" within the meaning of Section 112.656, Florida Statutes. 15. ENFORCEMENT OF AGREEMENT. If either party to this agreement commences litigation against the other in order to enforce any provision herein or recover damages for any breach hereof, the prevailing party in any finally concluded litigation shall be entitled to recover from the other any reasonable trial and appellate attorney's fees and expenses incurred in connection with such litigation, to the extent it is finally determined by a court of competent jurisdiction that the other party has actually breached this agreement. If any litigation is instituted for the purpose of interpreting or enforcing any of the provisions of this Agreement, the prevailing party or parties, as determined by the court having jurisdiction thereof, shall be entitled to recover from the non - prevailing party or parties in addition to all other relief, all costs and expenses incurred in connection with such litigation, including, without limitation, reasonable E. fees of attorneys and of accountants and other experts at the pretrial level, the trial level and in connection with all appellate proceedings. 16. GOVERNING LAW AND VENUE. This agreement is made in Palm Beach Gardens, Florida and the laws of the State of Florida shall govern this agreement. Venue for any legal action shall be Palm Beach County, Florida. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year above written: CITY OF PALM BEACH GARDENS FIREF TERS' RETI///R���EMENT SYSTEM By: �� _� A Secretary i hairman WI ES: , AMSOUTH BANK Print Name: - 1 , . Title: r 7 CUST- AmSouthAgmt EXHIBIT A CITY OF PALM BEACH GARDENS FIREFIGHTERS' RETIREMENT SYSTEM AND AMSOUTH BANK CUSTODIAL AGREEMENT ANNUAL ADMINISTRATIVE FEES Calculated at the rate of four basis points (.0004) applied to the market value of the assets in the Account. SECURITIES TRANSACTION FEES (PURCHASES AND SALES ONLY) Fee per Security Transaction = No Charge OTHER FEES Recurring Periodic Payment = No Charge Lump Sum Distribution & Other Payments = No Charge Minimum annual fee $ 3,000.00 Fees are calculated and are payable on a quarterly basis. E:j