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HomeMy WebLinkAboutAgenda Police Pension 072910Agenda City of Palm Beach Gardens Police Officers' Pension Fund MEETING OF JULY 29, 2010 LOCATION: City Council Chambers' 10500 North Military Trail Palm Beach Gardens, FL 33410 TIME: 9AM 1. Call Meeting To Order 2. Roll Call: • Lt. Jay Spencer, Chairman • David Pierson, Secretary • Jules Barone, Trustee • Brad Seidensticker, Trustee • Wayne Sidey, Trustee 3. Investment Manager Report - ICC Capital (Steve Stack) 4. Investment Consultant Report - Thistle Asset Consulting (John McCann) • International Manager Search 5. Administrator Report - Resource Centers (Audrey Ross) 6. Attorney Report - Law Offices of Perry & Jensen (Bonni Jensen) • Revised Summary Plan Description • Revised DROP Distribution Policy • Gilbert's FPPTA Presentation 7. Approval of Minutes • April 29, 2010 Regular Meeting 8. Disbursements 9. Benefit Approvals 10. Financial Statements 11. Old Business 12. Other Business • Auditor Discussion 13. Adjourn Next Meetin4 Date: Previously scheduled for Thursday October 28, 2010 @ 9AM PLEASE NOTE: Should any interested party seek to appeal any decision of this Board with respect to any matter considered at such meeting or hearing, s /he will need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. In accordance with the Americans With Disabilities Act of 1990, persons needing a special accommodation to participate in this meeting should contact the The Pension Resource Center, LLC no later than four days prior to the meeting. City of Palm Beach Gardens Police Officers' Pension Fund Minutes of the Meeting Held APRIL 29, 2010 The regular meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers' Pension Fund was called to order at 8:56 AM by Wayne Sidey in the Council Chambers at the Palm Beach Gardens City Hall at 10500 North Military Trail, Palm Beach Gardens, Florida. TRUSTEES PRESENT OTHERS PRESENT David Pierson, Secretary Audrey Ross (Resource Centers) Wayne Sidey, Trustee Bonni Jensen (Law Offices of Perry & Jensen) Brad Seidensticker, Trustee Steve Stack (ICC Capital Management) Jules Barone, Trustee Ray Ellis (PBG Clerk's Office) John McCann (Thistle Asset Consulting) SEPTEMBER 30, 2009 ACTUARIAL VALUATION REPORT Gabriel, Roeder, Smith & Company — Presented by Steve Palmquist Mr. Palmquist stated that the Fund had an Actuarial gain this fiscal year of $137,951. He commented that out of the 45 valuations that he has already done this year, this was the second or third fund that had a gain for the year and not a loss. The Actuarial gain has decreased the Employer contributions from $3.9M to $3.8M. Also the Plan's funded ratio increased from 53.4% to 56.2 %. Mr. Palmquist explained that with the changes they made 3 years ago to the plan it caused their funded ratio to drop, but since then it has gone up every year. He reported that the Plan received $412,644 in State contributions for the fiscal year, which is $34K more than last year. The additional $34K will be held in a reserve account for additional benefits. Mr. Palmquist reported that another factor in the gain was due to the payroll decrease in 2009 in which they did not expect. There were two less officers this year and there are more normal retirements and less disability retirements which is always beneficial to the Plan. Mr. Palmquist reviewed the unfunded liability and stated that as of the end of the fiscal year the unfunded amount was at $28M. He also stated that with the asset smoothing method it recognized a return of 4.4 %, but the Fund would assume 7.5 %. The administration expenses slightly increased this year compared to last year, and the DORP accounts have increased from $451K to $1M due to more members entering the DROP. The Board discussed how the Plan will be affected since more members are entering the DROP and not contributing to the pension plan anymore. Mr. Palmquist stated that the employee and employer contribution would offset any slack because the pay salaries would also decrease. MOTION: Mr. Barone made a motion to approve the September 30, 2009 Actuarial Valuation Report as presented by Gabriel, Roeder, Smith & Company. Minutes 4 -29 -10 - Palm Beach Gardens Police.doc Page 1 of 5 SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 4 -0. INVESTMENT MANAGER REPORT ICC Capital - Presented by Steve Stack Mr. Stack reported that both stocks and bonds have rallied within the quarter. He gave the Board an update on the current market environment and stated that ICC likes the technology and materials sectors and they also think the dollar will only get weaker. Mr. Stack commented that they are still buying and selling the Build America Bonds which are doing great. Within the quarter Corporates did better then Treasuries and value did better then growth. Mr. Stack reviewed the funds performance for the quarter ending March 31, 2010. The fixed income portfolio gained $258,518 throughout the quarter and had 94.8% in fixed income and 5.2% in cash. The total fund outperformed the index at 1.87% versus 1.78 %, and the bonds also outperformed at 2.04% versus 1.78 %. The growth portfolio also had a gain of $258,026 and had 93% in equities and 6.1% in cash. It was also a good quarter for the growth side as well because the total fund outperformed at 4.91% versus 4.65 %, and the equities outperformed the index at 5.07% versus 4.65 %. INVESTMENT CONSULTANT REPORT Thistle Asset Consulting - Presented by Brendon Vavrica Mr. McCann reviewed the compliance checklist and stated that as far as the total fund we are inline with the policy except for the trailing 3 year period in which they are behind. As far as the equity side we are inline with all the policies, but on the fixed income side we are lagging on the 3 and 5 year trailing periods. For the quarter ending March 31, 2010 there was 61% in equities, 36% in fixed income and 3% in cash. The total fund was slightly behind for the quarter at 4.16% versus the benchmark at 4.37 %. The total equities outperformed at 5.93% versus 5.64 %, and the total fixed income also outperformed at 1.96% versus 1.78 %. Mr. McCann then reviewed each Manager's performance for the quarter: Rhumbline S &P 500 - They were almost inline with the index at 5.38% versus 5.39 %. Rhumbline S &P 400 - Slightly behind at 9.02% versus 9.09 %, but they are still ranked in the 1St percentile. Rhumbline S &P 600 - Also behind at 8.52% versus the index at 8.61 %. ICC Large Cap Growth - Had a great quarter and outperformed at 5.08% versus 4.64 %. International Equity - It was a great quarter for this fund. They outperformed at 2.82% versus .94 %. Mr. McCann stated that he does not make any recommendations at this time to rebalance the portfolio. He also reviewed the Vanguard accounts and commented that they all did great. Mr. McCann briefly reviewed the change he made to the Investment Policy Guidelines regarding the scrutinized companies. MOTION: Mr. Sidey made a motion to approve the revised Investment Policy Guideline as presented. SECOND: Mr. Pierson seconded the motion. Minutes 4 -29 -10 - Palm Beach Gardens Police.doc Page 2of5 CARRIED: The motion carried unanimously 4 -0. Lastly, Mr. McCann reviewed his presentation that he had regarding alternative investments. He reviewed the different scenarios reflecting what the portfolio would look like when they add in different asset classes such as real estate, international bonds and others. The Board discussed the different options and were leaning towards adding in some International Bonds. Mr. McCann stated that he would recommend the fund go into commingled funds if they were going to add some International bonds because the fee is usually lower and they don't require a minimum amount to be able to get into the investment. He stated that he can do a full blown Manager search and bring it back to the Board. MOTION: Mr. Seidensticker made a motion to authorize Mr. McCann to do a full blown Manager search regarding International Bonds. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4 -0. ATTORNEY REPORT Law Offices of Perry & Jensen - Presented by Bonni Jensen Ms. Jensen notified the Board that all the amendments passed and she will have the revised SPD available at the next meeting to be reviewed. Mr. Jensen commented that GRS will do an impact statement regarding the City's buyout they are going to offer. Ms. Jensen reminded the Trustees' that their form 1 disclosures are due by July 1, 2010. Ms. Jensen updated the Board on the State Legislative session and commented that no bills passed that would impact 175 or 185 plans. The only changes that passed were in regards to the FRS. Ms. Jensen explained that there is a table in the DROP distribution policy which shows how to avoid the 10% penalty on taking monthly withdrawals, but she stated that we can not use this table and that an individual calculation would have to be completed by the Actuary in which the member would have to pay for. MINUTES MOTION: Mr. Pierson made a motion to approve the minutes from the January 27, 2010 regular meeting as amended. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 4 -0. ADMINISTRATOR REPORT Resource Centers — Presented by Audrey Ross N/A Minutes 4 -29 -10 - Palm Beach Gardens Police.doc Page 3 of 5 DISBURSEMENTS APPROVALS MOTION: Mr. Seidensticker made a motion to approve the disbursements. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4 -0 BENEFIT APPROVALS MOTION: Mr. Sidey made a motion to approve the applications to enter the DROP for Donald Ammon, Michael Rispoli, Paul Leffler Sr. and Sheree Brown. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 4 -0 MOTION: Mr. Sidey made a motion to approve the applications to exit the DROP for David O'Neill and Ed Vistein. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 4 -0 MOTION: Mr. Sidey made a motion to approve the application for a distribution of DROP account for Ronald Council. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 4 -0 MOTION: Mr. Sidey made a motion to approve the application for a refund of contributions for Brent Palmer. SECOND: Mr. Barone seconded the motion. CARRIED: The motion carried unanimously 4 -0 MOTION: Mr. Sidey made a motion to approve the application to enter the DROP for Jules Barone. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried 3 -0 (Mr. Baron withstand from the vote). FINANCIAL STATEMENTS The board reviewed and discussed the financial statements that were provided through March 2010. The board received and filed the financial statements through March 2010. OLD BUSINESS N/A Minutes 4 -29 -10 - Palm Beach Gardens Police.dor Page 4 of 5 OTHER BUSINESS Ms. Ross presented the Annual Report to the Board to be signed and she stated that she will send it off to the State. AJOURN There being no further business, and the future meetings are scheduled for the last Thursday of the first month of the quarter. The next regular meeting was scheduled for Thursday July 29, 2010 at 9AM; the Trustees officially adjourned the meeting at 10:18AM. Respectfully submitted, DAVID PIERSON, Secretary Minutes 4 -29 -10 - Palm Beach Gardens Police.doc Page 5 of 5 PALM BEACH GARDENS POLICE PENSION FUND Investment Review Quarter Ending June 30, 2010 PALM BEACH GARDENS POLICE PENSION FUND Table of Contents Quarter Ending June 30, 2010 ICC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Investment Review Quarter Ending June 30, 2010 ICC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Investment Performance Report Quarter Ending June 30, 2010 Total Return Summary Page...... 1 Portfolio Allocation Page...... 2 Investment Performance by Asset Category Page...... 3 Fixed - Income Analysis Page...... 4 Purchases & Sales Page...... 8 Realized Gains/ Losses Page...... 12 Portfolio Summary Page...... 15 Portfolio Appraisal PaLye...... 16 ICC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Total Return Summary Quarter Ending June 30, 2010 Starting Value Ending Value Difference Net Contributions/ (Withdrawals) Gain/(Loss) from Investments $14,323,111 $12,695,048 $7,806,576 $15,770,814 $15,770,814 $15,770,814 $1,447,703 $3,075,766 $7,964,238 $964,003 $2,398,189 $5,224,613 $483,700 1 $677,577 1 $2,739,625 --T TOTAL RETURN 3.18% 4.58% 25.65% ANNUALIZED TOTAL RETURN 4.67% ICC Capital Management, Inc. 1 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Portfolio Allocation at Market Quarter Ending June 30, 2010 Asset Allocation: 0/100 (Mkt) Market Value CASH /EQUIVS as of 03131/10 51% FIXED INCOME 4 94.9% Market Value CASH /EQUIVS 9.1 /o as of 06/30/10 FIXED INCOME 90.9% Mkt Value Mkt Value % Mkt Value Mkt Value % as of 03/31/10 as of 03/31/10 as of 06/30/10 as of 06/30/10 Cash/E uivs $733,328 5.1% $1,428,231 9.1% Fixed $13,589,783 94.9% $14,342,583 90.9% Total $14,323,111 100.0% $15,770,814 100.0% ICC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Investment Performance by Asset Category Quarter Ending June 30, 2010 uarter ■ ACCOUNT ■BCAG 10.00 8.00 6.00 3.46 3.49 3.18 3.49 3.06 3.49 4.00 2.00 0.00 BONDS TOTAL GROSS OF FEES TOTAL NET OF FEES Fiscal Year to Date ■ ACCOUNT ■ BCAG 10.00 8.00 5.05 5.55 5.55 5.55 6.00 4.58 4.33 4.00 2.00 0.00 BONDS TOTAL GROSS OF FEES TOTAL NET OF FEES Five Years Annualized ■ ACCOUNT ■ BCAG 10.00 8.00 5.07 5.54 5.54 4.67 5.54 6.00 4.17 4.00 2.00 0.00 BONDS TOTAL GROSS OF FEES TOTAL NET OF FEES The red total bar represents the Barclays Capital Aggregate Index. ICC Capital Management, Inc. 3 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis (Page 1 of 4) Quarter Ending June 30, 2010 Average Quality — AA- Average Duration — 3.98 Current Yield — 4.55 ICC Core Fixed Income Portfolio Mortgage Backed 23 2% Municipal Bonds 4.0% Government Sponsored 14.8 US Treasuries Corporate Bonds 9.4% 48.6% Average Quality — AA Average Duration — 5.44 Current Yield — 3.78 Barclays Capital Government/Credit Index Corporate Bonds 29.1% Government Sponsored 19.6% US Treasuries 51.3% Average Quality — AA Average Duration — 4.30 Current Yield — 4.18 Barclays Capital Aggregate Index US Treasuries 32.1% US MBS 34.1% so Government Sponsored 12.2% ABS 0.3% Corporate Bonds CMBS 18.2% 3.1% ICC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis (Page 2 of 4) Quarter Ending June 30, 2010 Sectors and Market Indices Performance US. Core Fixed Income Portfolio 2010 10.00 8.00 6.00 4.68 88 3.42 3.49 3. 3.18 2.87 2.78 254 4.00- 2.00 _ ��� Municipal Bonds Coupon Maturit y S&P Rating Mood 's Rating University N C Univ Revs 5.757% 12/1/2039 AA+ AAA Commonwealth Fing Auth Pa Rev 5.653% 6/1/2024 AA- AA3 Chicago Ill Brd Ed 6.138% 12/1/2039 AA- AA2 Utah St �o 7/1/2024 AAA Aso �P Mortgage Backed Securities Coupon Maturity S&P Rating Mood 's Rating Gnsf 5.5% Pool #714005 Municipal Bonds Coupon Maturit y S&P Rating Mood 's Rating University N C Univ Revs 5.757% 12/1/2039 AA+ AAA Commonwealth Fing Auth Pa Rev 5.653% 6/1/2024 AA- AA3 Chicago Ill Brd Ed 6.138% 12/1/2039 AA- AA2 Utah St 4.554% 7/1/2024 AAA AAA Mortgage Backed Securities Coupon Maturity S&P Rating Mood 's Rating Gnsf 5.5% Pool #714005 5.500% 10/15/2039 AAA Aaa F lmc #g02268 6.500% 8/1/2036 AAA Aaa Fncl # 256394 6.500% 9/1/2036 AAA Aaa G2 Pool # 4447 5.000% 5/20/2039 AAA Aaa Gn Pool # 782119 6.000% 8/15/2036 AAA Aaa G2 Pool # 4194 5.500% 7/20/2038 AAA Aaa G2 Pool # 4195 6.000% 7/20/2038 AAA Aaa Gnsf M #552509 6.000% 4/15/2032 AAA Aaa F ci # 12205 4.500% 6/1/2021 AAA Aaa Fnci N #725445 4.500% 5/1/2019 AAA Aaa Fnci M #254371 5.500% 7/1/2017 AAA Aaa Fnci N #255888 4.000% 8/1/2020 AAA Aaa Fnci N #825335 4.000% 5/1/2020 AAA Aaa Gn'o M #781313 6.000% 7/15/2016 AAA Aaa Fnci N #829053 4.000% 8/1/2020 AAA Aaa Gnsf M #582153 6.000% 6/15/2032 AAA Aaa F ci N 013455 4.500% 4/1/2019 AAA Aaa F ci N #g12323 4.500% 8/1/2021 AAA Aaa Government/A enc Bonds Coupon Maturity S&P Rating Mood 's Rating Freddie Mac 1.350% 6/29/2012 AAA AAA Fannie Mae 3.500% 1/29/2020 AAA AAA Fannie Mae 2.000% 1/13/2017 AAA AAA Freddie Mac 5.900% 6/15/2022 AAA AAA Fannie Mae 5.625% 11/15/2021 AAA AAA ICC Capital Management, Inc. 5 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis (Page 3 of 4) Quarter Ending June 30, 2010 GovernmentlAgency Bonds Coupon Maturit y S&P Rating Mood 's Rating Fannie Mae 6.000% 4/28/2021 AAA AAA Freddie Mac 3.375% 8/18/2014 AAA AAA Fannie Mae 3.200% 8/5/2014 AAA AAA Us Treasury 3.375% 11/1 2019 AAA AAA Us Treasury 4.625% 2/15/2040 AAA AAA Us Treasury 1.375% 3/15/2013 AAA AAA Corporate Bonds Coupon Maturit y S&P Rating Mood 's Rating Bank Of Ney York Mellon 2.950% 6/18/2015 AA- AA2 San Diego Gas & Electric 5.300% 11/15/2015 A+ Aa3 Goldman Sachs Group Inc 5.375% 3/15/2020 A Al McDonald's Corp 5.800% 10/15/2017 A A3 At &T Inc 5.625% 6/15/2016 A A2 Merck & Co Inc 6.000% 9/15/2017 AA- Aa3 University Of Chicago 5.420% 10/1/2030 AA AA1 At &T Inc 4.950% 1/15/2013 A A2 Golden West Finl 4.750% 10/1/2012 AA- Al New York University 5.236% 7/1/2032 AA- Aa3 General Elec Cap Corp 3.500% 6/29/2015 AA+ AA2 Blackrock Inc 5.000% 12/10/2019 A+ Al Cifigroup Inc 6.010% 1/15/2015 A A3 Cifigroup Inc 5.300% 10/17/2012 A A3 George Washington University 4.896% 9/15/2020 A+ Al Novant Health Inc 5.850% 11/1/2019 A+ Al Morgan Stanley 5.625% 9/23/2019 A A2 McDonald's Corp 5.300% 3/15/2017 A A3 Baxter International Inc 4.250% 3/15/2020 A+ A3 Goldman Sachs Group Inc 6.000% 5/1/2014 A Al National Rural Util Coop 5.500% 7/1/2013 A+ Al IBM Corp 6.500% 10/15/2013 A+ Al Pe sico Inc 3.100% 1/15/2015 A- AA3 Baker Hughes Inc 6.500% 11/15/2013 A A2 Honeywell International 3.875% 2/15/2014 A A2 General Dynamics Corp 5.250% 2/1/2014 A A2 Johns Hopkins University 5.250% 7/1/2019 AA AA2 Cisco Systems Inc 4.950% 2/15/2019 A+ Al Conoco hilli s 6.000% 1/15/2020 A Al Hewlett- Packard Co 4.250% 2/24/2012 A A2 Amgen Inc 5.700% 2/1/2019 A+ A3 Morgan Stanley 6.000% 5/13/2014 A A2 Coca -Cola Co 3.625% 3/15/2014 A+ AA3 Verizon Communications 5.500% 4/1/2017 A A3 Chevron Corp 4.950% 3/3/2019 AA AAl Cons Edison Co Of Ny 5.850% 4/1/2018 A- A3 Boeing Co 4.875% 2/15/2020 A A2 National Rural Util Coop 5.450% 4/10/2017 A+ Al Goldman Sachs 5.250% 10/15/2013 A Al Goldman Sachs 5.125% 1/15/2015 A Al Bear Stearns - jp Moran 5.700% 11/15/2014 A+ AA3 ICC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis (Page 4 of 4) Quarter Ending Portfolio Duration vs. Index Duration (Ratio) 1.8% T 1.4% NEUTRAL 1.0% 0.6% 0.2% 1 6/30/2008 June 30, 2010 --+— INDEX --M—ACCT AGGRESSIVE DEFENSIVE 9/30/2008 12/31/2008 3/31/2009 6/30/2009 9/30/2009 12/31/2009 3/31/2010 6/30/2010 ICC Capital Management, Inc. 7 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Review Quarter Ending June 30, 2010 ICC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Performance Report Quarter Ending June 30, 2010 Total Return Summary Page...... 1 Portfolio Allocation Page...... 2 Investment Performance by Asset Category Page...... 3 Portfolio Sector Diversification Page...... 4 Investment Performance by Sectors Page...... 5 Portfolio Attributes Page...... 6 Brokers Commission Page...... 7 Purchases & Sales Page...... 8 Realized Gains/ Losses Page...... 9 Portfolio Summary Page...... 10 Portfolio Appraisal Pa -ze...... 11 ICC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Total Return Summary Quarter Ending June 30, 2010 Starting Value $5,516,489 $4,957,615 $1,200,000 Ending Value $4,695,728 $4,695,728 $4,695,728 Difference ($820,761) ($261,887) $3,495,728 Net Contributions/ (Withdrawals) ($219,997) ($321,156) $3,619,945 Gain/(Loss) from Investments ($600,764) $59,269 ($124,217) TOTAL RETURN - 11.31% 0.63% - 10.19% ANNUALIZED RETURN -3.17% ICC Capital Management, Inc. 1 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Portfolio Allocation at Market Quarter Ending June 30, 2010 Asset Allocation: 100/0 (Mkt) Market Value CASH /EQUIVS as of 03131/10 6.1% EQUITY 93.9% Market Value as of 06130110 CASH /EQUIVS 5.0% EQUITY 4 95.0% Mkt Value Mkt Value % Mkt Value Mkt Value as of 03/31/10 as of 03/31/10 as of 06/30/10 as of 06/30/10 CasivE uivs 1 $336,234 6.1% 1 $232,870 5.0% Equity $5,180,255 93.9% $4,462,858 95.0% Total $5,516,489 100.0% $4,695,728 100.0% ICC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Performance by Asset Category Quarter Ending June 30, 2010 uarter ■ ACCOUNT ■ INDEX 0.00 -5.00 -10.00 -15.00 -11.86 -11.75 -11.31 -11.75 -11.44 -11.75 -20.00 EQUITY TOTAL GROSS OF FEES TOTAL NET OF FEES Fiscal Year to Date 5.00 1 11 -5.00 ■ ACCOUNT ■ INDEX Since Inception 0.00 -5.00 -10.00 EQUITY TOTAL GROSS OF FEES TOTAL NET OF FEES ■ ACCOUNT ■ INDEX EQUITY TOTAL GROSS OF FEES TOTAL NET OF FEES ICC Capital Management, Inc. The red total bar represents the Russell 1000 Growth Index. 3 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Portfolio Sector Diversification Quarter Ending June 30, 2010 Security Top Ten Holdings % of equities Return for Quarter TARGET CORPORATION 4.63% -6.21% NEWMONT MINING CORP. 4.43% 22.06% MICROSOFT CORP. 3.82% - 21.04% APPLE COMPUTER INC. 3.66% 11.05% MARVELL TECHNOLOGY GROUP 3.43% - 22.82% THOMAS & BETTS CORP. 3.19% - 11.57% SOUTHWEST AIRLINES CO. 3.11% -15.93% EXXON MOBILE CORP. 2.95% -14.19% MICRON TECHONOLOGY INC. 2.87% - 18.13% AMR CORP. 2.84% -15.71% Sector Sector Contribution % of Portfolio Return for Quarter Materials 5.59% 13.60% Industrials 18.17% - 13.03% Telecommunications 1.20% 4.44% Consumer Discretionary 13.76% - 14.99% Consumer Staples 8.55% - 12.90% Energy 4.32% -13.25% Financials 7.57% -25.19% Health Care 13.16% -16.51% Information Technology 25.52% -8.88% Utilities 2.15% -3.34% ICC Capital Management, Inc. 4 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Performance by Sectors Quarter Ending June 30, 2010 Index Sector Returns for 2 Q1 0 0.0 -0.8 -5.0 -10.0 -10.3 -1i -15.0 -15.7 1/1 Q -15.8 -20.0 selrr p p �cf I� GPs SptP �j0 P�Yl olds �I0 s °jo d k Sector Diversification Relative to the Russell 1000 Growth Index 10.0, -5. -10. o C 0 � r '$' dsve �Q+ell`rt`.r. Pj0 sP �o djs hod . Is °� n�j �Ip Pl P6' 11s °I1 °jo ply � ICC Capital Management, Inc. 5 OVERWEIGHT PALM BEACH GARDENS POLICE PENSION FUND GROWTH Growth Portfolio Attributes Quarter Ending June 30, 2010 CAPITALIZATION 6/30/2010 3 3 2010 12/31/2009 9 30 2009 ICC 43.4 50.1 48.5 44.1 R1000G 69.5 77.9 79.4 71.4 BETA 6/30/2010 3 3 2010 12/31/2009 9 30 2009 ICC 1.01 1.02 1.01 1.01 R1000G 1.00 1.00 1.00 1.00 YIELD 6/30/2010 3 3 2010 12/31/2009 9 30 2009 ICC 1.50 1.00 1.02 1.08 R1000G 1.70 1.50 1.56 1.72 PPE 6/30/2010 3 3 2010 1 3 2009 9/30/2009 ICC 12.4 15.8 17.7 20.2 R1000G 13.3 15.6 16.9 16.8 3 YEAR EPS GROWTH 6/30/2010 3 31 2010 1Z(31/2009 9 30 2009 ICC 5.0 12.0 7.7 3.3 R1000G 5.0 9.0 7.5 9.7 5 YEAR EPS GROWTH 6/30/2010 3 31 2010 12,/3112009 9 30 2009 ICC 14.0 18.0 16.9 14.4 R1000G 13.0 15.0 15.0 15.8 ICC Capital Management, Inc. G MARKET CAPITALIZATION 100.0 69.5 77•9 79.4 71.4 75.0 43.4 50.1 48.5 441 50.0 2_ 6/30/2010 3/31/2010 12/31/2009 9/30/2009 BETA 1.50 1.01 1.00 1.02 1.00 1.01 1.00 1.01 1.00 1.00 0.50 0.00 6/30/2010 3/31/2010 12/31/2009 9/30/2009 3.o YIELD 2.0 1.50 1.70 1.50 1.56 1.72 1.00 d1.08 1.0 0.0 d. , .d 6/30/2010 3/31/2010 12/31/2009 9/30/2009 30.0 PRICF/EARNINGS 20.0 17.7 20.2 15.8 15.6 16.9 16.8 12.4 13.3 10.0 0.0 6/30/2010 3/31/2010 12/31/2009 9/30/2009 15.0 3 YR EPS GROWTH 12.0 10.0 9.0 9.7 7.7 7.5 5.0 5.0 5.0 3.3 0.0 6/30/2010 3/31/2010 12/31/2009 9/30/2009 30.0 5 YR EPS GROWTH 20.0 14.0 18.0 15.0 16.9 15.0 14.4 15.8 13.0 10.0 0.0 6/30/2010 3/31/2010 12/31/2009 9/30/2009 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Broker Commission Summary Report Quarter Ending June 30, 2010 Date Trans Ticker Security $Amount Shares Price Comm PerSh Morgan Stanley 4/6/2010 Sell BMY Bristol Myers Squibb Company $103,060.44 3900 $26.45 $78.00 $0.02 4/6/2010 Sell BMY Bristol Myers Squibb Company $7,927.73 300 $26.45 $6.00 $0.02 4/6/2010 Sell BMY Bristol Myers Squibb Company $15,855.45 600 $26.45 $12.00 $0.02 4/6/2010 Sell BMY Bristol Myers Squibb Company $7,927.72 300 $26.45 $6.00 $0.02 Total: Morgan Stanley $134,771.34 5,100 $102.00 $0.02 Morgan Stanley Smith Barney 5/10/2010 Buy WFC Wells Fargo And Co. $137,096.82 4200 $32.62 $84.00 $0.02 Total: Morgan Stanley Smith Barney $137,096.82 4,200 $84.00 $0.02 The Griswold Company 4/13/2010 Buy AVP Avon Products Inc. $35,349.93 1100 $32.10 $44.00 $0.04 5/27/2010 Buy VFC Vf Corp. $115,680.90 1500 $77.08 $60.00 $0.04 Total: The Griswold Company $151,030.83 2,600 $104.00 $0.04 Edgetrade 2 4/6/2010 Sell GME Gamestop Corp -Cl A $2,241.26 100 $22.42 $1.00 $0.01 4/6/2010 Sell GME Gamestop Corp -Cl A $6,723.79 300 $22.42 $3.00 $0.01 4/6/2010 Sell JDSU Jds Uniphase Corp $27,827.68 2100 $13.26 $21.00 $0.01 4/6/2010 Sell JDSU Jds Uniphase Corp $7,950.76 600 $13.26 $6.00 $0.01 4/6/2010 Sell JDSU Jds Uniphase Corp $23,852.30 1800 $13.26 $18.00 $0.01 4/6/2010 Sell GME Gamestop Corp -Cl A $2,241.26 100 $22.42 $1.00 $0.01 4/6/2010 Sell GME Gamestop Corp -Cl A $15,688.83 700 $22.42 $7.00 $0.01 4/6/2010 Sell GME Gamestop Corp -Cl A $4,482.52 200 $22.42 $2.00 $0.01 4/6/2010 Sell GME Gamestop Corp -Cl A $4,482.53 200 $22.42 $2.00 $0.01 4/13/2010 Sell NEM Newmont Mining Corp $73,907.55 1400 $52.80 $14.00 $0.01 4/19/2010 Buy Cl Cigna Corp $28,333.12 800 $35.41 $8.00 $0.01 4/21/2010 Buy AMR AMR Corp $56,440.74 7100 $7.94 $71.00 $0.01 4/21/2010 Sell VMW Vmware Inc -Class A $18,401.93 300 $61.35 $3.00 $0.01 4/21/2010 Sell VMW Vmware Inc -Class A $67,473.73 1100 $61.35 $11.00 $0.01 4/26/2010 Sell AAPL Apple Computer Inc $13,498.98 50 $269.99 $1.00 $0.01 4/26/2010 Sell AAPL Apple Computer Inc $13,498.97 50 $269.99 $1.00 $0.01 4/26/2010 Sell AAPL Apple Computer Inc $26,997.95 100 $269.99 $1.00 $0.01 4/28/2010 Buy AMR AMR Corp $86,859.64 11600 $7.48 $116.00 $0.01 5/7/2010 Buy ADM Archer Daniels Midland Co $59,912.93 2300 $26.04 $23.00 $0.01 5/7/2010 Sell NUE Nucor Corp $31,598.09 700 $45.15 $7.00 $0.01 5/7/2010 Sell NUE Nucor Corp $22,570.07 500 $45.15 $5.00 $0.01 5/27/2010 Sell DV Devey Inc. $22,969.77 400 $57.43 $4.00 $0.01 5/27/2010 Sell DV Devey Inc. $17,227.33 300 $57.43 $3.00 $0.01 5/27/2010 Sell DV Devey Inc. $86,136.64 1500 $57.43 $15.00 $0.01 Total: Edgetrade 2 $721,318.37 34,300 $343.00 $0.01 ICC Capital Management, Inc. 5 Year Return (p1) 5 Year Standard Deviation (p19) Size Fund Policy Difference Fund Policy Difference 6/30/2010 2.46 2.19 0.27 9.28 11.91 -2.63 1 3/31/2010 4.12 4.03 0.09 9.05 11.63 -2.58 0.7 12/31/2009 3.11 2.88 0.23 8.92 11.48 -2.56 0.49 9/30/2009 3.64 3.44 0.20 8.94 11.44 -2.50 0.343 N/A Inception Return (p16) Inception Standard Deviation (p20) Size Fund Policy Difference Fund Policy Difference 6/30/2010 0 0 1 3/31/2006 0 0 0.7 12/31/2005 0 0 0.49 9/30/2005 0 0 0.343 Total Equity 5 Year Return (p49) 5 Year Return (p21) Inception Standard Deviation (p57) 5 Year Standard Deviation (p24) Size Fund Fund Policy Difference Policy Fund Policy Difference 4.71 6/30/2010 0.67 -0.09 0.76 16.49 18.10 -1.61 1 3/31/2010 3.28 2.85 0.43 16.14 17.51 -1.37 0.7 12/31/2009 1.73 1.36 0.37 15.91 17.24 -1.33 0.49 9/30/2009 2.55 2.30 0.25 15.92 17.23 -1.31 0.343 N/A Inception Return (p16) Inception Standard Deviation (p20) Size Fund Policy Difference Fund Policy Difference 6/30/2010 0 0 1 3/31/2006 0 0 0.7 12/31/2005 0 0 0.49 9/30/2005 0 0 0.343 ICC Fixed Income 5 Year Return (p49) Inception Standard Deviation (p57) Size Fund Policy Difference Fund Policy Difference 6/30/2010 4.71 5.54 -0.83 3.91 3.88 0.03 1 3/31/2010 5.09 5.44 -0.35 3.94 3.65 0.29 0.7 12/31/2009 4.82 4.97 -0.15 3.99 3.67 0.32 0.49 9/30/2009 4.95 5.13 -0.18 3.88 3.59 0.29 0.343 CINSX Black Rock International Bond Fund Expense Primarily non - dollar 5 -15 year bonds Markets AUM At least 65% assets in at least 3 developed countries Ratio Can invest 25 +% in UK, Can. France, Germany, Japan DIBRX Dreyfus International Bond Fund 0.90% At least 65% in non -US gov't and corp. bonds ESICX Evergreen Advantage Inst. International Bond Fund 396 0.55% 2007 (Inc.) 2.96% At least 80% foreign gov't or corporate debt Maximum 35% below investment grade. OIBYX Oppenheimer International Bond Fund At least 80% in foreign gov't and corporate bonds RPIIX T. Rowe Price Institutional International Bond Fund At least 80% in non -US securities *No limit on emerging market investment grade Maximum 25% below investment grade IGOV iShares Citi International Treasury Bond Fund ETF S &P /Citi International Treasury Bond index Ex -US BWX SPDR Barclays Capital Intl. Treasury Bond Index ETF BC Global Ex -US index IBND SPDR Barclays Capital Investment Grade International corporate bond index ETF Emerging # of Expense Manager Markets AUM Securities Ratio Tenure Yield 35% $304M 118 0.90% 2010 2.22% 25% $652M 240 0.85% 2010 2.78% 5% each 5% $113 124 0.79% 1993 (Inc.) 3.22% no limit $126 227 0.63% 2004(Inc.) 4.40% *100% $205M 396 0.55% 2007 (Inc.) 2.96% $124M 0.35% 2009 2.51% $16 0.50% 2007 0.79% $6M 0.55% 2010 2.85% Palm Beach Gardens Police Review of International Bond Funds June 30t ", 2010 Comparative Index: World Bond ie. Citi -Non $US World Gov.Bond 3 Month Balckrock -1.36% Dreyfus -1.63% Evergreen -2.13% Oppenheimer -2.15% T. Rowe -3.01% i- Shares -3.86% Barclays ETF -3.95% BarclaysSPDR - Policy: -1.26% Balckrock Dreyfus Evergreen Oppenheimer T. Rowe i- Shares Barclays ETF BarclaysSPDR 6 -Month -3.07% -1.44% -1.52% -0.78% -4.13% -6.03% -5.14% -3.34% CCGQ U.9U% 0.89% 0.79% 0.63% 0.55% 0.35% 0.55% 0.50% 1 Year 2.90% 9.23% 5.39% 7.98% 2.33% -2.85% -0.92% 1.52% MIN.$ $2M $1,000 $1M NONE $1M NONE NONE NONE 3 Year 5.50% 13.02% 8.61% 6.86% 5.13% 5 Year 3.53% 5.55% 7.34% 7.66% 4.98% Palm Beach Gardens Police Review of International Equity Funds June 30t ", 2010 1. Vanguard Global Equity (VHGEX) [0.47 %] June 30, 2010 MorningStar Rating: (out of 471 funds over 5- years) Comparative Index: World Stock ie. MSCI World 0 \/__1 G \/__1 Fund: - 12.03% 14.50% - 13.64% 0.20% Policy: - 11.39% 10.20% - 11.46% 0.06% Diff: 0.64% 4.30% -2.18% 0.14% Rating: n/a -0.11% Rating: March 31, 2010 MorningStar Rating Comparative Index: (out of 255 funds over 10- years) World Stock ie. MSCI World 0 \/--- G \/--- Fund: 4.53% 59.83% -7.27% 2.78% Policy: 3.24% 52.37% -5.41% 2.89% Diff: 1.29% 7.46% -1.86% -0.11% Rating: n/a 79 Received an average rating but a very good review from Morningstar. There is long -term optimism due to good 10 -year and since - inception returns. No change recommended. www.vanguard.com 2. Vanguard International Growth Admiral Shares (VWILX) [0.34 %] June 30, 2010 MorningStar Rating: 3z (out of 655 funds over 3- years) Comparative Index: Foreign Large Blend ie. MSCI EAFE 0 KA-4 -k 11 \/__1 0 \/__1 G \/__r Fund: - 12.16% 12.01% -9.91% 3.88% Policy: - 13.97% 5.92% - 13.38% 0.88% Diff: 1.81% 6.09% 3.47% 3.00% Rating: n/a 12 19 March 31, 2010 MorningStar Rating Comparative Index: 3 Month Fund: 2.55% Policy: 1.58% Diff: 0.97% Rating: n/a �tT� (out of 638 funds over 3- years) Foreign Large Blend ie. MSCI EAFE 1 Year 3 Year 62.09% -3.22% 60.93% -4.17% 1.16% 0.95% 5 Year 6.39% 6.11% 0.28% Received a good rating and review from Morningstar. The category is up 30% for the year through December 10, but the fund is turning in a top - decile performance and is topping its typical peer by 10 percentage points and the MSCI EAFE index by even more. Three solid subadvisors run the portfolio. Over trailing periods of one year and longer, the fund is squarely top - quartile. www.vanauard.com 3. Vanguard International Value (VTRIX) [0.45 %] June 30, 2010 MorningStar Rating: (out of 293 funds over 3- years) Comparative Index: Foreign Large Value ie. MSCI EAFE Value March 31, 2010 MorningStar Rating: i (out of 274 funds over 3- years) Comparative Index: Foreign Large Value ie. MSCI EAFE Value 3 Month 1 Year 3 Year 5 Year Fund: - 15.96% 4.84% - 12.52% 2.38% Policy: - 13.97% 5.92% - 13.38% 0.88% Diff: -1.99% -1.08% 0.86% 1.50% Rating: n/a 40 March 31, 2010 MorningStar Rating: i (out of 274 funds over 3- years) Comparative Index: Foreign Large Value ie. MSCI EAFE Value Average rating but good review from Morningstar. Down to 3 -stars from 4 -stars this quarter. Consists of four subadvisors that employ sound, value oriented styles that complement each other. This recent success is no fluke. The four subadvisors have come on board at various points in time over the past nine years. No change recommended. www.vanquard.com 3 Month 1 Year 3 Year 5 Year Fund: 1.50% 55.87% -4.79% 5.83% Policy: -0.24% 58.52% -8.40% 3.20% Diff: 1.74% -2.65% 3.61% 2.63% Rating: n/a Average rating but good review from Morningstar. Down to 3 -stars from 4 -stars this quarter. Consists of four subadvisors that employ sound, value oriented styles that complement each other. This recent success is no fluke. The four subadvisors have come on board at various points in time over the past nine years. No change recommended. www.vanquard.com This material is for internal and /or client reporting purposes only and may not be used Advanced Analytics Page 1 of 1 as sales material or by broker /dealers in connection with the sale of any security. Release Date: 06 -30 -2010 SPDR Barclays Capital Intl Corp Bond Rating Net Assets Morningstar Category Data updated through 06 -30 -2010 — $5.8 mil World Bond Trailling-Time-Period Performance 3 Yr 5 Yr 10 Yr 15 Yr Load - Adjusted Return % YTD 1 Mo 3 Mo 12 Mo Annlzd Annlzd Annlzd Annlzd as of 06 -30 -10 Total Return % as of 06 -30 -10 — 0.20 +/- Barcap Agg — -1.37 +/- CitiNon -$ Wld Gv — -1.47 % Rank within Category 1 = Best 100 = Worst Total Return % +/- Barcap Agg +/- CitiNon -$ Wld Gv Family: State Street Global Advisors Ticker: Inception: 2010 -05 -19 Min Init Purchase: Manager: Yeats /Hutson Min IRA: Tenure: 0.1 Years Min Auto Inv Plan: Telephone: 866 - 787 -2257 Purchase Constraints: Objective World Bond Internet: IBND www.ssgafunds.com © 1996 -2010 Morningstar, Inc. All rights reserved. 22 W. Washington Street, Chicago, IL, 60602, 312 -696 -6000 IVInRNINGSiAR Principia "' Although data are gathered from reliable sources, Morningstar cannot guarantee completeness and accuracy. 12 Mo 5 Yr 10 Yr Inception Front -End Load: 0.00% Deferred Load: 0.00% 12b -1 Fee: —% Gross Exp Ratio: 0.55% Net Exp Ratio: 0.55% NAV /MKT: 30.06 This material is for internal and /or client reporting purposes only and may not be used Advanced Analytics Page 1 of 1 as sales material or by broker /dealers in connection with the sale of any security. SPDR Barclays Capital Intl Treasury Bond Data updated through 06 -30 -2010 Total Return % as of 06 -30 -10 +/- Barcap Agg +/- CitiNon -$ Wld Gv % Rank within Category 1 = Best 100 = Worst Total Return % +/- Barcap Agg +/- CitiNon -$ Wld Gv Family: State Street Global Advisors Inception: 2007 -10 -02 Manager: Schwartzman /Brunel) /Kirby Tenure: 2.8 Years Telephone: 866 - 787 -2257 Objective World Bond Rating Net Assets $958.7 mil Release Date: 06 -30 -2010 Morningstar Category World Bond 3 Yr 5 Yr 10 Yr 15 Yr Load - Adjusted Return % 12 Mo Annlzd Annlzd Annlzd Annlzd as of 06 -30 -10 -:),I4 1.10 _J.do -U.Jz -10.47 -0.42 -7.44 -10.42 -1.80 -0.52 -2.69 -2.44 Ticker: Min Init Purchase: Min IRA: Min Auto Inv Plan: Purchase Constraints: Internet: BWX www.ssgafunds.com © 1996 -2010 Morningstar, Inc. All rights reserved. 22 W. Washington Street, Chicago, IL, 60602, 312 -696 -6000 IVInRNINGSiAR Principia "' Although data are gathered from reliable sources, Morningstar cannot guarantee completeness and accuracy. 12 Mo 5 Yr 10 Yr Inception 4.23 5.44 -5.14 -1.01 -0.49 -10.47 -5.88 1.05 -1.80 Front -End Load: 0.00% Deferred Load: 0.00% 12b -1 Fee: —% Gross Exp Ratio: 0.50% Net Exp Ratio: 0.50% NAV /MKT: 53.75 RISKY BUSINESS Florida Public Pension Trustees Association June 29th 2010 GilbertA. Garcia, CFA Managing Partner ATime of Danger ATime of Opportunity lu 1pom zoos Gold S &P High Yield 7 Russell Aggregate Aggrega 10 -Year Annualized Returns Ending 12 -31 -09 13.59% 6.72% 6.33% 4.98% - 0.95% 011111[0111NWlOIGL� INDEX Gold High Yield Aggregate Russell Midcap 10 -Year Annualized Returns Ending 12 -31 -09 13.59% 6.72% 6.33% 4.98% - 0.95% •r_ •I0Id� 10 -Year INDEX Annualized Returns Ending 12 -31 -09 Gold High Yield Aggregate Russell Midcap 13.59% 6.72% 6.33% 4.98% 10 -Year Sharpe Ratio Ending 12 -31 -09 0.965 0.941 0.300 0.101 S &P - 0.95% -0.212 e oo7 10 -Year Annualized Returns Gold Ending 12 -31 -07 / 11.25% S& High Yield 10.00% 5.97% 5.91% Russell Aggregate 5.51% Midcap 611111■[S1ONVlSI• INDEX Gold Russell Midcap Aggregate High Yield 10 -Year Annualized Returns Ending 12 -31 -07 11.25% 10.00% 5.97% 5.91% 5.51% •r_ •I• 10 -Year INDEX Annualized Returns Ending 12 -31 -07 Gold Russell Midcap Aggregate 11.25% 10.00% 5.97% 5.91% 10 -Year Sharpe Ratio Ending 12 -31 -07 0.665 0.620 0.338 0.261 High Yield 5.51% 0.136 C3 10 -Year INDEX Sharpe Ratio Ending 12 -31 -09 Aggregate Gold High Yield Russell Midcap 0.965 0.941 0.300 0.101 -0.212 10 -Year Sharpe Ratio Ending 12 -31 -07 0.665 0.620 0.338 0.261 0.136 Is There An Easy Button? pplp- RISK PALM BEACH GARDENS POLICE PENSION FUND I Benefit Approvals I Meeting of July 29, 2010 GWENDOLYN FLEMING JACK SEGRETO JOSEPH CORRAO APPLICATION TO ENTER THE DROP DATE OF BIRTH DATE OF HIRE DATE OF TERMINATION AGE AT RETIREMENT YEARS AT SERVICE FORM OF BENEFIT MONTHLY BENEFIT AMOUNT SUPPLEMENTAL BENEFIT DATE OF BIRTH DATE OF HIRE DATE OF TERMINATION AGE AT RETIREMENT YEARS AT SERVICE FORM OF BENEFIT MONTHLY BENEFIT AMOUNT SUPPLEMENTAL BENEFIT DATE OF BIRTH DATE OF HIRE DATE OF TERMINATION AGE AT RETIREMENT YEARS AT SERVICE FORM OF BENEFIT MONTHLY BENEFIT AMOUNT SUPPLEMENTAL BENEFIT 12/04/1963 10/06/1986 03/28/2010 46 YEARS 23 YEARS TEN YEAR CERTIAN $7,667.26 $ 287.50 02/02/1965 12/06/1989 05/01/2010 45 YEARS 20 YEARS MODIEFIED CASH ANNUITY $6,242.40 $ 250.00 09/08/1964 05/29/1985 05/31/2010 45 YEARS 25 YEARS 100& JOINT & SURVIOR $7,527.77 $ 312.50 APPROVED: , CHAIRMAN SECRETARY DATE