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
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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
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Market Analysis I
Upcoming Settlement Claim Deadlines 2
Upcoming Lead Plaintiff Deadlines 3
Conclusion
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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
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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