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Home My WebLink AboutAgenda Fire Pension 072610THE 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, July 26, 2010 Location: Council Chambers, Palm Beach Gardens City Hall 10500 North Military Trail Palm Beach Gardens, FL 33410 Time: 10:00 A.M. AGENDA 1. Call Meeting to Order 2. Minutes of Meetings Held May 10, 2010 and June 18, 2010 3. Investment Monitor Report: Bogdahn Consulting • Quarterly Investment Report • Investment Strategy Review for Domestic Equity • Final Revised Investment Policy Statement 4. Attorney Report: Pedro Hererra • Status of Proposed Ordinance 5. Administrative Report: Margie Adcock • Disbursements 6. Other Business • Review Status of Disability Recipients 7. Schedule Next Meeting: Monday, September 20, 2010 at 9:00 A.M. 8. 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 May 10, 2010 A meeting of the Board of Trustees was called to order at 9:05 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 (9:25 A.M.) Joe Bogdahn, Investment Monitor Gregory Dahlman, Investment Manager The Board reviewed the minutes of the meeting held March 15, 2010. A motion was made, seconded and carried 5 -0 to accept the minutes of the meeting held March 15, 2010. INVESTMENT MANAGER REPORT (Dana) Gregory Dahlman appeared before the Board. He stated that he was the lead portfolio manager for the large cap growth strategy. He noted that this past week has wiped out most of the gains earned in the 1St Quarter. The total market value as of March 31, 2010 was $14,427,981.66. For the quarter ending March 31, 2010, the portfolio was up 5.81% while the Russell 3000 was up 5.97 %. He noted that the large cap part of the portfolio was up 4.59% while the Russell 1000 Growth was up 4.64 %. The value portion of the portfolio was up 6.84% while the S &P 500 was up 5.39 %. There was discussion on their 2009 performance. He noted that the Dana large cap growth beat the Russell 1000 Growth Index in 7 of the past 9 years. The Dana large cap value beat the Russell 1000 Index in 6 of the past 8 years. Mr. Dahlman reviewed the total risk reward for the period of March 31, 2005 to March 31, 2010. He discussed cash on corporate balance sheets. He noted that cash as a percentage of US companies overall market cap is currently at a 60 year high. The 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. Bob Sugarman entered the meeting. INVESTMENT MONITOR REPORT Joe Bogdahn appeared before the Board. He reviewed performance for the quarter ending March 31, 2010. He reviewed the market environment. He noted that the domestic market outpaced foreign markets in the quarter. However, for the one -year, foreign markets outpaced domestic markets. The total market value of the Fund as of March 31, 2010 was $30,530,322. The Fund was up 3.59% net of fees for the quarter while the benchmark was up 3.89 %. The total equity portfolio was up 5.47% while the benchmark was up 5.19 %. The total domestic 2 equity portfolio was up 5.80% while the Russell 3000 was up 5.94 %. The Dana core equity portfolio was up 6.84% for the quarter while the S &P 500 was up 5.39 %. The Dana growth equity portfolio was up 4.57% for the quarter while the Russell 1000 Growth was up 4.65 %. The total international portfolio was up 4.05% while the benchmark was up .94 %. The international portfolio managed by RBC Global was up 4.90% and the international portfolio managed by Manning & Napier was up 2.75% for the quarter while the EAFE was up .94 %. The total fixed income portfolio was up 2.06% for the quarter while the benchmark was up 1.81 %. Agincourt was up 2.12% for the quarter while the benchmark was up 1.78 %. DHJ fixed income was up 2.01% for the quarter while the benchmark was up 1.81%. The real estate portfolio managed by American Realty was down .67% for the quarter while the NCREIF was up .81 %. Gregory Dahlman departed the meeting. Mr. Bogdahn noted that Dana is the sole domestic equity manager. He stated that he would like to have a special meeting to discuss the portfolio structure and discuss the equity components. He stated that he is comfortable with fixed income and thinks there is nice diversification. He would also like a discussion on TIPS /SIPS. Mr. Sugarman asked if there was any further discussion with the City on possibly closing the Plan because that would most likely affect Mr. Bogdahn's recommendation on asset allocation. Mr. Morejon stated that there have been discussions with the City. Currently the County is working on a proposal but he is not sure of the likelihood of anything happening. He stated that he would most likely have a better idea by August. Mr. Bogdahn reviewed the compliance checklist. Mr. Morejon stated that he was concerned about the interest assumption. Mr. Bogdahn stated that he is looking at 20- year numbers and plans are meeting the assumptions. He noted that short term is the issue. The Actuary is using a 5 year smoothed average. However, this is a long -term program. Mr. Bogdahn stated that he thinks 8.25% is a good number going forward. If the return is reduced now, the City's cost will increase. There was further discussion. Mr. Bogdahn recommended the Board review asset allocation. A motion was made, seconded and carried 5 -0 to do due diligence and move forward with a special meeting to discuss the asset allocation. A special meeting was scheduled for June 18th at 9:00 A.M. REAL ESTATE PRESENTATIONS Mr. Bogdahn stated that the Fund is under the target allocation in real estate. He stated that the Board needed to determine whether to add more money to the existing core fund or to a different real estate investment. AMERICAN REALTY ADVISORS Jay Butterfield and Richelle Hayes appeared before the Board. Mr. Butterfield provided an introduction. He stated that currently the Fund is invested in their core fund. They are one of the largest privately held real estate advisors in the US. They have $3.3 billion in assets under management. They have been in business for 21 years. They have plenty of experience. He stated that this is only their fourth down cycle in 21 years. He reviewed a representative client list. He discussed core versus value. He discussed their value proposition. The focus is on middle market multi- tenant properties. They have a conservative use of leverage and have hands -on management. He discussed the current market conditions. Signs of real estate stabilization have begun to surface. He discussed 3 the positive and negative signs. Due to the recession's depth, recovery will be slow. Mr. Butterfield reviewed the American Core Realty Fund. There are 168 clients and $1.4 billion invested in 57 properties. He discussed the fund strategy and valuations. He discussed property diversification and debt maturity. He discussed challenges and opportunities. He reviewed the core fund and noted that a majority of the return will come from income. He noted that value represents a little higher risk. He recommended that the Fund add to the core fund as it is less expensive; the attorney has already reviewed the documents and the return from income will be more significant in 2010 and 2011. Jay Butterfield and Richelle Hayes departed the meeting. DISCUSSION ON THE AUDIT Allan Owens and Shawn O'Brien appeared before the Board. Ms. Wisneski stated that she invited Finance Director Allan Owens and Accounting Manager Shawn O'Brien to address the Board regarding additional work that the City had to do with respect to the Fund's Audit and incorporating it into the City's CAFR. Mr. Owens stated that they had a new accounting firm audit the City's statements and a few additional procedures had to be done with respect to the Fund's Audit. Mr. O'Brien discussed the additional work that had to be done. He first noted though that everything did agree in total. He noted that the City changed two items to be more consistent with the other City pension plans and they also had to break out the ratings for the risk disclosure. Mr. O'Brien noted that in total everything agreed, but some reclassification needed to be done. Mr. Owens stated that there was no difference in the bottom line. Mr. Morejon noted the Fund's Audit is done for the Fund and not the City. He also noted that the City has never provided any list of its requirements to the Board or the Fund's Auditor. He stated that the Board would be more than willing to look at anything the City would like to make the process easier. Mr. Rhodes noted that Mr. Gordon at a prior meeting stated that he would be more than happy to include in the next Audit anything requested. There was further discussion on the disclosures. Mr. Owens stated that while the Board knows where the money is, it is not necessarily clear to a third party. He stated that the City has always done this and it has never been an issue for the City. Mr. Owens stated that the City has no issue with Mr. Gordon and noted that he has always been very responsive to the City's request. He stated that the City has no issue in working with Mr. Gordon and it was just this one area that needed to be adjusted. Ms. Wisneski stated that she would like Mr. Gordon to step up the reporting or go for an RFP. Mr. Sugarman noted that this was a little beyond the Board's expertise and asked Ms. Wisneski to get together with Mr. Gordon, the City and the City's Auditor to set forth what would be necessary for next year's audit. Mr. Rhodes stated that he did not want to have to include extra work for Mr. Gordon or the Fund just to meet the City's requirement. If the City wants extra work that is something different, but the Board does need to make sure that the accounting requirements are included. It was determined that Ms. Wisneski would get together with Mr. Gordon, the City and the City's Auditor so the parties could agree what would be necessary for next year's audit. Allan Owens and Shawn O'Brien departed the meeting. 4 INTERCONTINENTAL REAL ESTATE CORPORATION Peter Hapgood and Peter Palandjian appeared before the Board. Mr. Hapgood provided a brief introduction. He stated that he was a senior consultant and Mr. Palandjian was the CEO and President. Mr. Palandijian provided a firm overview. The firm has been in business for over 50 years. The firm started as a real estate contractor, then went to contractors and developers, and then integrated into asset management. They have $2.4 billion in assets under management. They have 77 employees with three offices. He reviewed the funds summary and partial client list. He discussed the US Real Estate Investment Fund. They offer quarterly entry and exit and there currently is no redemption queue. They have had only one redemption, which was only $2 million and the plan that redeemed got out of real estate all together. Mr. Palandijian stated that the real goal of the fund is to do net 10 %. They have $586.5 million in capital commitments with 50 institutional investors. They have had 27 acquisitions to date and have $111.5 million in un -drawn commitments. He discussed the debt summary and portfolio summary. He reviewed performance and holdings in the portfolio. He discussed investing in real estate now and reviewed the historical NCREIF returns. He stated that they would not be taking any money until the next quarter or the quarter after. They will not take the money unless they see a compelling deal. Peter Hapgood and Peter Palandjian departed the meeting. DISCUSSION ON REAL ESTATE PRESENTATIONS Mr. Bogdahn stated that American has done a nice job with the core product. He noted that Intercontinental adds a little bit of flavor to that with a value added portfolio. He noted that the fees were similar but noted that Intercontinental has a performance fee. There was a lengthy discussion. A motion was made, seconded and carried 5 -0 to allow Intercontinental to provide an agreement to the Attorney, but directed the Attorney not to review the agreement until after further discussion at the June meeting. Mr. Bogdahn provided a Revised Investment Policy Statement (IPS). The Board noted that they would discuss it at the special meeting in June. ATTORNEY REPORT Mr. Sugarman discussed the status of the revised Ordinance. He stated that there was still no response from the City. He stated that he has provided Mr. Morejon with the dates and times he has contacted the City. Mr. Morejon stated that he would see how this matter could be moved forward. Mr. Sugarman stated that the City offered a buyout to certain employees, which expired last Friday. He noted that employer incentives could be designed to encourage employees to leave and start collecting a pension. Payroll savings offsets the higher pension. The pension funds are usually contacted in these situations, but that was not the case here. He stated that questions arose regarding the buyout and how the lump sum payment would be treated for pension purposes. Mr. Sugarman stated that if the employee is terminated now versus put on unpaid leave, they do not obtain any further service. There was also the issue of early retirement and it was noted that to be eligible for early retirement an 5 employee had to be working when they reach age 50. If they are not age 50 when they leave employment, they are not eligible for early retirement. Mr. 011iff departed the meeting. ADMINISTRATIVE REPORT Ms. Adcock presented the list of disbursements to be made. A motion was made, seconded and carried 4 -0 to approve the disbursements. Mr. 011iff re- entered the meeting. OTHER BUSINESS Mr. Sugarman stated that he reviewed the proposed Actuarial Services Agreement. There was discussion on the matter. The Board stated that they were very pleased with the services of the Actuary. A motion was made, seconded and carried 5 -0 to approve the Addendum to the Actuarial Services Agreement with GRS. The Board reviewed the status of the disability recipients. Mr. Sugarman discussed the procedure of review. If a disability is not apparent, a letter should be sent for verification. A motion was made, seconded and carried 5 -0 to authorize the Administrator to send a letter to all of the current disability recipients. The Board reviewed the current contract with the Custodian. Mr. Morejon stated that he would like to issue a RFP, as that has not been done in a very long time. Mr. Bogdahn stated that he would handle this as he recently did this for another pension plan. There being no further business, the meeting adjourned. Respectfully submitted, Tom Murphy, Secretary PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND MINUTES OF MEETING HELD June 18, 2010 A meeting of the Board of Trustees was called to order at 9:05 A.M. at Council Chambers, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES Tom Murphy Rick Rhodes Ed Morejon Donna Wisneski Roy 011iff ADDITION TO THE AGENDA OTHERS Margie Adcock, Administrator Pedro Herrera, Attorney Joe Bogdahn, Investment Monitor Mr. Morejon stated that he would like to add the proposed Ordinance to the Agenda under Other Business. A motion was made, seconded and carried 5 -0 to add the proposed Ordinance to the Agenda under Other Business. Mr. Herrera noted that the proposed Ordinance was being added to the Agenda now because his office just received comments from the City on the document. INVESTMENT MONITOR REPORT Joe Bogdahn appeared before the Board. He provided an investment strategy review of the domestic equity portion of the portfolio. He noted that Dana is the domestic equity manager. There was discussion on anything the Board could do to increase the returns by changing or adding managers. Mr. Bogdahn provided information for the Board on other blends of managers. There was a lengthy discussion on the benchmark for Dana. It was noted that they have a growth and value equity portfolio that they can move back and forth between. For the growth product the benchmark is the Russell 1000 Growth, while the benchmark for the core value product is the S &P 500. There was a lengthy discussion on what the benchmark is currently and the proposed benchmark. Mr. Rhodes stated that the reports from Dana needed to be consistent and reported to the Investment Policy Statement, as it appeared that some prior reports were inconsistent. Mr. Bogdahn stated that the total domestic equity portfolio will be measured against the Russell 3000 and the individual growth and value components will be measured against the Russell 1000 Growth and S &P, respectively. Mr. Bogdahn reviewed the proposed revised Investment Policy Statement. There was further discussion. A motion was made, seconded and carried 5 -0 to approve the proposed revised Investment Policy Statement as amended based on the Attorney's final approval. Mr. Bogdahn stated that he would make the changes discussed and provide the revised Statement to the Attorney for final review. Once it is reviewed and approved by the Attorney, it will be provided to the Board. 2 Mr. Bogdahn stated that the Board was meeting today to discuss whether the Board should stay with Dana as the sole domestic equity manager; complement them with another manager; or replace them with another manager. He reviewed the information he provided using the following combinations: 100% Dana Large Cap 50% Dana Large Cap Value /50% Dana Large Cap Growth 100% Manning & Napier 50% Dana Large Cap Value /50 %ASC 50% Dana Large Cap /ICC Multicap 50% DGHM Value /50% Brown Large Cap Growth 50% DGHM Value /50% DSM Large Cap Growth 50% Eagle /50% DSM Large Cap Growth 50% Moody Value /50 %Brown Large Cap Growth 50% Westend/ 50% Cornerstone Mr. Bogdahn reviewed the risk/return analysis for the eight years ending March 31, 2010. He reviewed the upside and downside capture ratios for the four and eight year periods ending March 31, 2010. He stated that he thinks the Dana Large Cap Value and ICC Multicap blend would be a strong one. Mr. Morejon stated that he would like to see a comparison of Dana to the managers that the Board previously interviewed. Mr. Bogdahn stated that he would provide that information at the next meeting. Mr. Bogdahn stated that the Fund's objective is to, over time, beat the S &P 500 by 2 %. He stated that Dana has come pretty close to doing that in eight years. Dana has done what they have said they were going to do. He noted that perhaps now the Board wants them to do something different. Mr. Bogdahn stated that he would recommend going to the Dana Core Value product and adding the ICC Multicap. He stated that would provide two different processes. He would eliminate the Dana Growth and add ICC, which would give a more opportunistic component. There was a lengthy discussion. Mr. Bogdahn stated that he would provide the comparison information for the next meeting Mr. Bogdahn then provided a summary of the quotes and information he received regarding the Board's request for information on custodial services. There was discussion on the current services provided by Regions. Mr. Bogdahn reviewed the responses he received from Salem Trust, BNY, Fifth Third Bank and SunTrust. It was noted that Regions was the least expensive than any other custodian on the list. Ms. Adcock noted that she has not had any issues with Regions and advised that they were always very responsive. The Board decided to retain the current agreement and services with Regions. Mr. Bogdahn noted that the Fund was currently under - allocated in the real estate component. There was a lengthy discussion on whether the Board would want to add more of an allocation to real estate. He provided the Board with the cap rate spread to the 10 -year treasury. Mr. Bogdahn stated that he thought now is the time to be adding to get 3 back to the target in real estate. The risk is that real estate is an illiquid investment and is a long -term investment. It was noted that American Realty does a good job. He feels Intercontinental would be a good complement. He recommended hiring Intercontinental and giving them $1.5 million and bringing back American Realty to a $1.5 million investment to get the Fund back to a 10% allocation in real estate. There was discussion on whether American has written off all of their holdings and the concern about giving them more money to bring them back to $1.5 million. Mr. Bogdahn stated that American owned solid properties and the return of American is based on the market cycle of when the Fund invested. Mr. Bogdahn stated that it was his recommendation to target an allocation of 10% in real estate with 50% to American Realty and 50% to Intercontinental. He stated that at this point he likes the idea of adding to real estate. A motion was made, seconded and carried 5 -0 to authorize the Attorney to negotiate an agreement with Intercontinental for the next meeting. ATTORNEY REPORT Mr. Herrera discussed the status of the revised Ordinance. He stated that his office and the City have reviewed it and it is being proposed for consideration. He stated that it includes the changes that will bring the Ordinance into compliance with Chapter 2009 -97 and establish a guaranteed rate of 3% for DROP accounts. Mr. Herrera reviewed the changes with the Board. It was noted that there was a problem with the printing of the Ordinance with respect to Section 38- 57(2), which showed that this Section had been stricken when in fact that is not the case. Mr. Herrera continued to review the proposed Ordinance. There was a lengthy discussion. A motion was made, seconded and passed 5- 0 to move forward with the proposed changes to the Ordinance as discussed, making sure that Section 38 -57(2) has and will not be stricken. A motion was made, seconded and passed 5 -0 to provide that after the Attorney reviews and finalizes the proposed Ordinance, the Ordinance be distributed to all of the Trustees with final approval to be held by the Chair before provided to the City Council. OTHER BUSINESS There being no further business, the meeting adjourned. Respectfully submitted, Tom Murphy, Secretary City of Palm Beach Gardens Firefighters' Pension Trust Fund (Preliminary Report) 2nd Quarter 2010 WWW.BOGDAHNGROUI'.COM T HE BOGDAHN GROUP simplifying your inr,esrmeuf ,urd fidrrciai y decisions 2nd Quarter 2010 Market Environment Page 2 1 H F BOGDAHN GROUP The Market Environment Major Market Index Performance Period Ended: June 30, 2010 ■ Even the most optimistic market participants had no shortage of negative events to consider during the second quarter. Domestically, investors had to assess the potential impact of financial reform, stubbornly slow employment growth and a burgeoning Federal deficit. Globally, investors had to consider the potential contagion of sovereign credit issues in Europe, questionable global growth and evolving Chinese currency policy. If this collection of macro issues wasn't enough to give you pause, there was (and still is) oil spilling into the Gulf of Mexico. One individual pulling -back in the face of such challenges is certainly understandable, but if we collectively pause to wait and see "what may happen ", the unfortunate result will likely be deflation. While maintaining a long -term strategy in such an uncertain environment can be difficult, we are confident in the market's ability to persevere over the long- term. ■ Domestic and international equity benchmarks suffered their largest pullback in more than a year during the 2nd quarter. While it is always tempting to fault a single issue as the cause of negative performance, it is more likely a combination of cascading events that resulted in a general reassessment of market risk tolerance after more than a year of consistent gains. In contrast to equity markets, fixed income benchmarks posted impressive quarterly performance as a "flight to quality" drove investors to U.S. Treasury securities, which resulted in lower yields and higher prices. ■ Despite the 2nd quarter's negative equity performance, one - year results were solid for each of the equity and fixed income benchmarks on the chart. Emerging markets and domestic small and mid cap issues posted the year's most outsized equity gains. Not to be outdone, the Barclays Aggregate Bond index return of 9.5% was also impressive. Source: Barclays Capital, MSCI Capital Markets, Russell Investments Page 3 MSCI ACWxUS MSCIEAFE MSCI Emerg Mkts S &P 500 Russell 3000 Russell 1000 Russell MidCap Russel 12000 Barclays US Agg Barclays US Govt Barclays MBS Barclays Corp IG 3 -Month T -Bill Quarter Performance -12.3% -13.7 8.3 -11.4% -11.3 -11.4% -9.9 -9.9 -20.0% -15.0% -10.0% -5.0% MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts 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 One Year Performance 3.5 4.2 2.9 3.4 0.0% 0.0% 5.0% 10.0% 10.9 6.4% 23,5% 14.4% 15.7% 15.2 25.1 21.5 9.5 1 7.5 15.9 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% rs* THE $QGDAHN GRouP The Market Environment Domestic Equity Style Index Performance Period Ended: June 30, 2010 ■ Value managed to outpace growth on a relative basis for the quarter at each capitalization level with the exception of small cap stocks (Russell 2000). The chart illustrates that the 2nd quarter's style -based performance bands were much more narrow than those realized over the last several quarters. In fact, the narrow 140 basis point differential between small cap value and growth returns represented the quarter's widest style -based range. This quarter's narrower performance span was not surprising given the widespread losses realized by the most heavily- weighted economic sectors of the various capitalization -based style benchmarks. ■ The range of style -based benchmark performance is much broader over the one -year period and favors value over growth across the capitalization spectrum. The value -based benchmarks' outperformance over the one -year period was largely driven by the strong financial sector performance during the 3rd quarter of 2009 and the 1st quarter of 2010. While the one -year results are certainly impressive in an absolute sense, the inclusion of the 2nd quarter's negative performance coupled with the "roll -off' of the 2nd quarter of 2009's strong performance (Russell 1000: +16.5 %) resulted in a significant downshift in the reported one -year performance from last quarter. Source: Russell Investments Page 4 MidCap Value -9.6% MidCap Index -9.9% MidCap Growth -10.2% 2000 Value -10.6% 20001ndex -9.9% 2000 Growth -9.2% -15.0% -10.0% -5.0% 0.0% 5.0% One Year Performance 3000 Value 3000 Index 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCapindex MidCap Growth 2000 Value 20001ndex 2000 Growth 17.6% 15.7% 13.9% 16.9% 15.2% 1 .6% 28.9% 25.1 % 21.3% 25.1% 21.5% 18.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% *■� THE BOGDAHN GROUP Quarter Performance 3000 Value -11.1% 30001ndex -11.3% 3000 Growth -11.6% 1000 Value -11.1% 10001ndex -11.4% 1000 Growth -11.7% F MidCap Value -9.6% MidCap Index -9.9% MidCap Growth -10.2% 2000 Value -10.6% 20001ndex -9.9% 2000 Growth -9.2% -15.0% -10.0% -5.0% 0.0% 5.0% One Year Performance 3000 Value 3000 Index 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCapindex MidCap Growth 2000 Value 20001ndex 2000 Growth 17.6% 15.7% 13.9% 16.9% 15.2% 1 .6% 28.9% 25.1 % 21.3% 25.1% 21.5% 18.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% *■� THE BOGDAHN GROUP The Market Environment GICS Sector Performance & (Quarter -End Sector Weight) Period Ended: June 30, 2010 • Small cap stock performance was also negative across each ■QTR Russell 1000 • Large cap stock performance was negative across the various O 1 -Year Global Industry Classification Standard (GICS) sectors for the Energy (10.3%) -12.6% quarter. There were few places for portfolios to shift or hide Materials (3.8%) -15.2 with seven of the ten sectors of the Russell 1000 index down the quarter's individual manager results, sector positioning to more than 10% for the quarter. In a reversal of last quarter's Industrials (10.9 °r °) Consumer Staples (3.3%) sector results, telecommunication services ( -5.0 %) and utilities Consumer Disc (10.7%) -11.4 ( -3.8 %) sectors were the strongest relative performing sectors Consumer Staples (10.3%) Financials (21.4%) of the benchmark during the 2nd quarter. Such weak results Info Technology (17.9%) sector of the Russell 2000 was positive over the period and on a broad sector level means that individual issue selections Health Care (12.2 °r °> Telecom Services (1.0 %) and uninvested cash positions will likely play a dominate roll in Financials (16.7%) -5.0 individual investment manager results. 5.8% -3.8 Info Technology (18.4%) • For the trailing one -year period, each of the ten GICS sectors Telecom Services (2.9 %) in the Russell 1000 index posted positive performance. In Utilities (3.8%) contrast to the quarterly results, seven of the ten sectors of the Russell 1000 returned in excess of 10% for the period. - 30.0°x° - 20.0°x° -10.0% 0.0% • Small cap stock performance was also negative across each ■QTR 13 1 -Year 3.5% of the GICS sectors for the 2nd quarter. Even though the quarter's sector losses in the Russell 2000 were generally Energy (5.4%) more mild than those realized in the large cap index, it was Materials (4.8%) still a very difficult quarter for small cap stocks. While issue Industrials (15.4 %) selections and cash positions will be paramount in attributing the quarter's individual manager results, sector positioning to Consumer Disc (13.8%) industrials (- 7.7 %), consumer staples ( -6.4 %) and utilities Consumer Staples (3.3%) ( -3.2 %) will also likely play a role. 13.3 -11.4 Health Care (13.8%) • Despite the 2nd quarter's small cap selloff, the one -year results Financials (21.4%) for the Russell 2000 index GICS sectors are impressive. Each Info Technology (17.9%) sector of the Russell 2000 was positive over the period and 17.5 six of ten sectors returned in excess of 20 %. Telecom Services (1.0 %) Utilities (3.2 %) Source: Thompson Financial Page 5 Russell 2000 10.0% 20.0% 30.0% 40.0% -13.8% 3.5% -13.1% 16.5% -12.2% 26.6% -11.0 29.3% -8.5% 13.3 -11.4 10.3% -13.3 17.5 -12.2 16.3% -5.0 5.8% -3.8 6.3% Russell 2000 10.0% 20.0% 30.0% 40.0% -13.8% 21.9% -13.1% 38.1% -7 19.6% -13.6% 34.0 21.3 -10.3% 13.2% -9.5 21.2% -8.7% 21.0% 13.7% - 30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% f�7THE $QGDAHN GRouP The Market Environment Top 10 Index Weights & Performance for the 2nd Quarter Period Ended: June 30, 2010 Russell 000 Exxon Mobil Corp .. 10 Weighted Symbol XOM Stocks Weight 2.77% Return -14.2% Sector Energy Apple Inc AAPL 2.00% 7.1% Information Technology Microsoft Corp MSFT 1.90% - 21.0% Information Technology General Electric Co GE 1.61% -20.3% Industrials Procter & Gamble Co PG 1.59% -4.5% Consumer Staples Johnson & Johnson JNJ 1.51% -8.6% Health Care International Business IBM 1.49% -3.2% Information Technology Bank Of America Corpor BAC 1.47% -19.4% Financials Jpmorgan Chase & Co JPM 1.45% - 18.1% Financials Wells Fargo & Co New Russell rrr Netflix Inc WFC Top r Performing Symbol NFLX 1.38% Stocks Weight 0.04% - 17.6% Return 47.3% Financials Sector IIM� Consumer Discretionary Mariner Energy Inc ME 0.02% 43.5% Energy Abraxis Bioscience Inc ABII 0.00% 43.4% Health Care Gig Partners Inc GLG 0.01% 42.7% Financials Sybase Inc SY 0.04% 38.7% Information Technology Akamai Technologies In AKAM 0.06% 29.2% Information Technology Valeant Pharmaceutical VRX 0.03% 21.9% Health Care Sandisk Corp SNDK 0.08% 21.5% Information Technology Newmont Mining Corp NEM 0.23% 21.4% Materials Chipotle Mexican Grill :. Russell rrr Anadarko Pete Corp CMG ttom 1r Symbol APC 0.04% Performing Weight 0.25% 21.4% Stocks Return -50.3% Consumer Discretionary Sector Energy Office Depot Inc ODP 0.02% -49.4% Consumer Discretionary Ak Stl Hldg Corp AKS 0.02% -47.7% Materials Massey Energy Corp MEE 0.03% -47.6% Energy Cobalt Intl Energy Inc CIE 0.01% -45.2% Energy Seahawk Drilling Inc HAWK 0.00% -42.9% 1 Energy Nvidia Corp NVDA 0.07% -41.3% Information Technology Sears Hldgs Corp SHLD 0.04% - 40.4% Consumer Discretionary Waddell & Reed Finl In WDR 0.02% - 39.3% Financials United States Stl Corp X 0.07% - 39.3% Materials Source: Thompson Financial Page 6 Russell 000 Human Genome Sciences .. 10 Weighted Symbol HGSI Stocks Weight 0.46% Return -6.4% Sector Health Care Ual Corp UAUA 0.32% -1.8% Industrials Tupperware Brands Corp TUP 0.26% -0.6% Consumer Discretionary Skyworks Solutions Inc SWKS 0.26% -4.7% Information Technology Ares Cap Corp ARCC 0.25% -3.5% Financials Domtar Corp UFS 0.25% 1 -6.3% Materials E Trade Financial Corp ETFC 0.24% -9.4% Financials Polycom Inc PLCM 0.24% -2.4% Information Technology Solera Holdings Inc SLH 0.24% -3.5% Information Technology Developers Diversified Russell rir Neurocrine Biosciences DDR Top r Performing Symbol NBIX 0.231/. Stocks Weight 0.02% -9.1 °/a Return 119.6% Financials Sector Health Care Akorn Inc AKRX 0.01% 94.1% Health Care Cirrus Logic Inc CRUS 0.08% 88.4% Information Technology Us Gold Corporation UXG 0.03% 85.6% Materials Idenix Pharmaceuticals IDIX 0.01% 77.3% Health Care Trimas Corp TRS 0.01% 74.3% Industrials Astronics Corp ATRO 0.01% 66.8% Industrials Cpi Corp CPY 0.01% 63.3% Consumer Discretionary Southwest Bancorp Inc OKSB 0.02% 60.7% Financials Power One Inc New :. Russell rrr Intermune Inc PWER ttom 1r Symbol ITMN 0.05% Performing Weight 0.10% 60.0% Stocks Return - 79.0% Information Technology Sector Health Care First Bancorp P R FBP 0.01% -78.0% Financials Affymax Inc AFFY 0.04% -74.5% Health Care Yrc Worldwide Inc YRCW 0.04% -66.9% Industrials Oxigene Inc OXGN 0.00% -66.3% Health Care Pacific Cap Bancorp Ne PCBC 0.01% -65.7% Financials South Finl Group Inc TSFG 0.01% -63.1% Financials Discovery Laboratories DSCO 0.01% -59.7% Health Care Fuelcell Energy Inc FCEL 0.02% - 58.2% Industrials Old Second Bancorp Inc OSBC 0.00% -57.5% Financials BOGDAHN GROUP The Market Environment International and Regional Market Index Performance (# Countries) Period Ended: June 30, 2010 ■ Much like the domestic indices, international markets also suffered during the quarter due to concerns over global credit and sustainable growth. The "flight" to the safety of the U.S. Dollar (USD) that typically occurs during periods of global unrest is clearly evident in the USD versus local currency international index results. Relative to the USD, 39 of the 44 countries that make up the MSCI- ACWxUS index saw their currencies depreciate by an average of -6.0 %. In contrast, Japan was one of the five ACWxUS countries that managed to gain relative to the USD during the quarter with an appreciation of +4.8 %. ■ Weak performance in developed markets (- 13.8 %) was spread broadly across the 22 countries in the MSCI -EAFE index. In fact, Singapore's USD return of +0.0% was the only positive country in the index. In contrast to Singapore, it should certainly come as no surprise that Greece was the worst performing country in the index with a return of -40.4% for the quarter. The emerging markets index return of -8.3% for the quarter was down less than developed markets for the quarter due to stronger relative results in the emerging Asian countries as well as some sporadic positive individual country results. Over the last year, the emerging market index shows a performance advantage of more than 3x the developing market index return. ■ It is interesting to note that MSCI reclassified Israel as a developed market country as part of its semi - annual index review in May. While Israel's 0.9% weight in the MSCI -EAFE index at the end of the quarter may not seem significant, it is the first country in the developed index that does not fall into the classic definition of (E)urope, (A)ustralasia or (F)ar (E)ast. Source: MSCI Capital Markets Page 7 ■QTR(USD) o QTR (Local) AC World x US (44) WORLD x US (23) EAFE (22) Europe (16) Pacific (5) Emerging Mkt (21) EM Europe (5) EM Asia (8) EM Latin Amer (5) Quarter Performance -12.3 -9.3% -13.4 -10.4 -13.8% -10.9 -14.8 -9.5% -11.6 -13.0 -8.3% -5.5 -15.3 -9.0 -5.1 2.7 -11.9 10.3% -20.0% -15.0% - 10.0% -5.0% 0.0% 5.0% ■ 1 -Year (USD) 01 -Year (Local) AC World x US (44) WORLD x US (23) EAFE (22) Europe (16) Pacific (5) Emerging Mkt (21) EM Europe (5) EM Asia (8) EM Latin Amer (5) One -Year Performance 10.9% 12.4% 7.5% 10.3 6.4 10.4% 6.3 17.3 6.6 -0.8% 23.5 20.1% 27.0% 30.5% 23.0% 19.9% 25.7% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% fC�THE ; $QGDAHN GRouP The Market Environment U.S. Dollar International Index Attribution & Country Detail Period Ended: June 30, 2010 MSCI-EAFE Energy Ending Weight 7.1% 2nd Qtr -22.5% -9.2% Materials 10.1% -18.1% 13.4% Industrials 12.3% - 10.9% 13.9% Consumer Discretionary 10.3% -10.1% 10.4% Consumer Staples 10.6% -7.3% 19.4% Health Care 9.0% -9.6% 10.8% Financials 24.4% - 16.9% 0.8% Information Technology 5.2% -14.7% 6.3% Telecommunication Services 5.6% -9.3% 4.4% Utilities 5.5% -12.5% -4.0% Total 0' 2.0% -21.0% MSCI - ACWlxUS Energy Ending Weight 10.3% 2nd Qtr Return - 16.7% 1-Year Return 0.3% Materials 11.8% -15.2% 19.9% Industrials 10.5% - 10.5% 14.9% Consumer Discretionary 8.9% -8.6% 15.2% Consumer Staples 9.1% -6.3% 22.3% Health Care 6.4% -9.4% 12.0% Financials 25.3% - 14.7% 7.2% Information Technology 6.9% - 13.3% 14.6% Telecommunication Services 6.1% -7.0% 7.7% Utilities Total 4.8% 100.0% -11.0% -0.5% Source: MSCI Capital Markets, & Franklin/Templeton Page 8 Japan .3% 16.0% -10.1% 0.9% United Kingdom 721.0% 14.5% -13.8% 8.6% France .8% 6.7% - 18.3% 1.7% Australia .1% 5.6% -19.0% 18.1% Switzerland 8.0% 5.5% - 11.3% 18.0% Germany 7.8% 5.4% - 12.1% 7.8% Spain 3.5% 2.4% - 20.4% - 12.6% Sweden 2.9% 2.0% -6.6% 30.8% Italy 2.8% 2.0% -21.0% -9.2% Netherlands 2.6% 1.8% -13.0% 17.4% Hong Kong 2.6% 1.8% -5.8% 14.3% Singapore 1.7% 1.2% 0.0% 29.4% Finland 1.0% 0.7% -25.9% -9.4% Denmark 1.0% 0.7% -5.4% 19.4% Belgium 0.9% 0.7% - 12.3% 13.6% Israel 0.9% 0.6% - 18.4% 13.2% Norway 0.7% 0.5% - 17.5% 12.3% Austria 0.3% 0.2% - 21.9% -10.0% Ireland 0.3% 0.2% -19.8% -7.0% Greece 1 0.3% 0.2% 1 - 40.4% -46.7% Portugal 1 0.3% 0.2% 1 - 16.7% -9.8% New Zealand Total EAFE Countries 0.1% 00 0.1% - 10.5% 8.6% Canada Total Developed Countries 7.9% 76.8% - 10.3% 18.6% 7.5% China 4.4% -4.5% 11.1% Brazil 3.6% - 15.2% 22.1% Korea 3.2% -7.6% 32.3% Taiwan 2.5% -9.3% 16.1% India 1.9% -2.2% 32.0% South Africa 1.7% -9.5% 18.4% Russia 1.5% - 15.4% 26.9% Mexico 1.0% -9.0% 31.7% Malaysia 0.7% 0.2% 33.9% Indonesia 0.6% 4.4% 66.9% Turkey 0.4% 4.0% 44.3% Chile 0.4% 2.9% 25.8% Thailand 0.4% -1.7% 35.1% Poland 0.3% - 21.6% 24.0% Colombia 0.2% 3.6% 53.6% Peru 0.1% 4.2% 52.2% Egypt 0.1% - 13.4% 11.4% Philippines 0.1% 3.1% 37.2% Hungary 0.1% - 30.2% 15.5% Czech Republic 0.1% -13.0% -0.6% Morocco Total Emerging Countries Total ACWIxUS Countries 0.0% 23.2% 00i' 4.1% -8.3% -11.1 23.5% 0• THE BQGDAHN GRouP The Market Environment Domestic Credit Sector & Broad Market Maturity Performance Period Ended: June 30, 2010 ■ The equity market unrest that occurred during the quarter was largely a benefit to fixed income indices. Foreign sovereign AAA credit worries and the looming possibility of a "double -dip" as recession overshadowed the corporate spread compression A that dominated fixed income results for most of the last year. BBB The resulting "flight to quality" drove rates lower across the <BBB Treasury yield curve. This general rate decline enhanced the Govt performance of long -dated and high - quality bond issues. The market's changing risk aversion was evident in the high yield Mort index ( <BBB) return of -0.1%. This performance marked the first quarter in more than a year that high yield was not the 1- 3yrG /M /C best performing segment of the fixed income market. 1- 5yrG/M/C 1 -10yr G /M /C 10 +yrG /M /C Quarter Performance 4.8 442.8% 3.7% 4.3% 2.9 G /M /C = Broad Market (Government + Mortgage '+ Corporate) 2.1% 2.9% 8.5% -2.0% 0.0% 2.0% 4.0% 6.0% ■ Despite questions surrounding the sustainability of the global AAA economic recovery that dominated the quarter's results, the one -year performance of the various bond market indices still AA shows the effects of sizable credit compression in corporate A issues. The Government bond index, which did not benefit BBB from the credit compression in corporate bonds, posted a <BBB respectable +6.5% over the last year. Govt Mort Source: Merrill Lynch Index System Page 9 1- 3yrG /M /C 1- 5yrG /M /C 1- 10yrG /M /C 10+yrG /M /C One Year Performance 6.5 0 7.6% 5.3% 16.4 % 8.1% 11.1 1 12.1% 15.4% 16.7% 19.6% 8.0% 10.0% 27 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% f�7THE ; $QGDAHN GRouP THE SOGDAHN Page 10 GROUP Total Fund Portfolio June 30, 2010 March 31, 2010 : $30,530,322 June 30, 2010 : $29,809,720 Segments Market Value Allocation Segments Market Value Allocation ■ Domestic Equity 14,284,678 46.8 ■ Domestic Equity 12,778,859 42.9 ■ International Equity 2,616,485 8.6 ■ International Equity 2,280,376 7.6 ■ Domestic Fixed Income 8,710,384 28.5 11 Domestic Fixed Income 8,971,066 30.1 ■ Real Estate 716,187 2.3 ■ Real Estate 737,577 2.5 ■ Cash Equivalent 4,202,589 13.8 0 Cash Equivalent 5,041,840 16.9 1~Hk, SOGDAHN Page 11 GROUP March 31, 2010 : $30,530,322 ■ Dana Equity Portfolio 0 Dana Growth (Equity) 0 Davis,Hamilton,Jackson & Assoc. Fixed ■ Agincourt Capital Management ■ Receipt & Disbursement ❑ RBC Global (Voyageur) International Portfolio ❑ Manning & Napier Overseas (EXOSX) ■ American Real Estate Fund Page 12 Total Fund Portfolio June 30, 2010 June 30, 2010 : $29,809,720 Market Value Allocation Market Value Allocation ($) ( %) ($) ( %) 7,909,157 25.9 ■ Dana Equity Portfolio 7,139,520 24.0 6,515,594 21.3 ■ Dana Growth (Equity) 5,797,651 19.4 4,618,022 15.1 ■ Davis,Hamilton,Jackson & Assoc. Fixed 4,721,337 15.8 4,274,642 14.0 ■ Agincourt Capital Management 4,431,617 14.9 3,199,878 10.5 ■ Receipt & Disbursement 4,021,016 13.5 1,997,345 6.5 ❑ RBC Global (Voyageur) International Portfolio 1,835,139 6.2 1,299,498 4.3 ❑ Manning & Napier Overseas (EXOSX) 1,125,863 3.8 716,187 2.3 ■ American Real Estate Fund 737,577 2.5 BOGDAHN GROUP Page 13 Asset Allocation History by Portfolio Dana Equity Portfolio Dana Growth (Equity) RBC Global (Voyageur) International Portfolio Manning & Napier Overseas (EXOSX) American Real Estate Fund Agincourt Capital Management Fixed Davis,flamiltonjackson & Assoc. Fixed Receipt & Disbursement Total Fund Portfolio Palm Beach Gardens Firefighters' Asset Allocation As of June 30, 2010 6,188,958 26.52 5,198,908 22.28 1,652,460 7.08 1,006,057 4.31 839,567 3.60 3,999,862 17.14 4,214,259 18.06 233,951 1.00 23,334,022 100.00 7,102,580 26.30 5,824,742 21.57 1,915,140 7.09 1,264,803 4.68 756,753 2.80 4,160,859 15.41 4,469,977 16.55 1,514,481 5.61 27,009,334 100.00 7,403,119 25.89 6,230,819 21.79 1,904,009 6.66 1,264,660 4.42 722,843 2.53 4,185,916 14.64 4,527,104 15.83 2,358,402 8.25 28,596,870 100.00 7,909,157 25.91 6,515,594 21.34 1,997,345 6.54 1,299,498 4.26 716,187 2.35 4,274,642 14.00 4,618,022 15.13 3,199,878 10.48 30,530,322 100.00 7,139,520 23.95 5,797,651 19.45 1,835,139 6.16 1,125,863 3.78 737,577 2.47 4,431,617 14.87 4,721,337 15.84 4,021,016 13.49 29,809,720 100.00 Historical Asset Allocation By Segment 100.0 80.0 0 60.0 0 a 40.0 a 20.0 0.0 9/09 10/09 11/09 12/09 1 /10 2/10 3/10 4/10 5110 6/10 Domestic Equity ■ International Equity Domestic Fixed Income Real Estate Cash Equivalent THE $OGDAHN GROUP Palm Beach Gardens Firefighters' Financial Reconciliation As of June 30, 2010 Financial Reconciliation Dana Equity Portfolio 7,909,157 23,892 - - 23,892 - 46,978 - 816,616 7,139,520 Dana Growth (Equity) 6,515,594 - - - - - 28,220 - 746,162 5,797,651 RBC Global (Voyageur) International Portfolio 1,997,345 2,771 - - -2,771 - 268 - 162,474 1,835,139 Manning & Napier Overseas (EXOSX) 1,299,498 - - - - - - - 173,635 1,125,863 American Real Estate Fund 716,187 - - - -1,905 - - 23,295 737,577 Agincourt Capital Management 4,274,642 - - - - - 49,598 107,377 4,431,617 Davis,Hamiltonjackson & Assoc. Fixed 4,618,022 2,886 - - -2,886 - 56,445 46,871 4,721,337 Receipt & Disbursement 3,199,878 - 29,549 1,044,175 - 168,531 - - 29,514 4,557 - 4,021,016 Total Fund Portfolio 30,530,322 - 1,044,175 - 168,531 - 31,454 - 29,514 186,065 - 1,721,344 29,809,720 Financial Reconciliation FYTD Dana Equity Portfolio 7,102,580 58,374 - - - 58,374 - 127,680 - 90,741 7,139,520 Dana Growth (Equity) 5,824,742 9,863 - - -9,863 - 70,717 - 97,808 5,797,651 RBC Global (Voyageur) International Portfolio 1,915,140 8,045 - - -8,045 - 376 - 80,377 1,835,139 Manning & Napier Overseas (EXOSX) 1,264,803 - - - - - 10,581 - 149,521 1,125,863 American Real Estate Fund 756,753 - - - -5,682 - 18,029 - 31,523 737,577 Agincourt Capital Management 4,160,859 5,204 - - -5,204 - 148,461 122,296 4,431,617 Davis,Hamiltonjackson & Assoc. Fixed 4,469,977 8,510 - - -8,510 - 168,709 82,651 4,721,337 Receipt & Disbursement 1,514,481 - 89,996 3,077,485 - 407,791 - - 78,198 5,035 - 4,021,016 Total Fund Portfolio 27,009,334 - 3,077,485 - 407,791 - 95,678 - 78,198 549,589 - 245,023 29,809,720 1~Hk, SOGDAHN Page 14 GROUP Palm Beach Gardens Firefighters' Comparative Performance As of June 30, 2010 otal Fund Portfolio (Net) -4.98 0.92 11.03 -4.00 2.00 3.03 05/01/1998 otal Fund Policy N/A N/A N/A N/A [N /A lifference N/A N/A N/A N/A N/A N/A otal Fund Portfolio (Gross) 4.88 1.25 11.51 -3.59 2.54 3.62 05/01/1998 otal Fund Policy N/A N/A N/A N/A N/A lifference N/A N/A N/A N/A N/A N/A otal Equity -10.29 -1.30 13.18 N/A N/A -5.68 07/31/2008 otal Equity Policy -1 1.66 -2.10 14.34 N/A N/A lifference 1.37 0.80 -1.16 N/A N/A 3.07 'otal Domestic Equity -10.31 0.08 13.60 -7.91 1.27 4.34 07/01/2002 ussell3000 -11.32 -0.51 15.72 -9.47 -0.48 - lifference 1.01 0.59 -2.12 1.56 1.75 1.62 Tana Core Equity -9.73 0.52 15.36 -7.55 1.51 4.49 07/01/2002 &P 500 -11.43 -1.02 14.43 -9.81 -0.79 2.52 lifference 1.70 1.54 0.93 2.26 2.30 1.97 Jana Growth Equity -11.02 -0.47 11.52 N/A N/A 9.71 06/01/2009 ussell 1000 Growth Index -11.75 -0.31 13.62 -6.91 0.38 13.67 lifference 0.73 -0.16 -2.10 N/A N/A -3.96 'otal International Equity -10.19 -6.89 11.38 -10.71 N/A 1.12 01/01/2006 1SCI EAFE Index -13.75 -11.00 6.37 -12.94 1.35 -1_60 lifference 3.56 4.11 5.01 2.23 N/A 2.72 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 1I(� $ Q�DAH 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. �T (" Roup Page 15 Palm Beach Gardens Firefighters' Comparative Performance As of June 30, 2010 3C Global (Voyageur) International Portfolio -8.12 -4.18 11.06 -10.55 N/A 1.24 01/01/2006 SCI EAFE Index -13.75 -11.00 6.37 -12.94 1.60 fference 5.63 6.82 4.69 2.39 N/A 2.84 anning & Napier Overseas (EXOSX) -13.36 -10.99 11.91 N/A N/A 19.21 05/01/2009 SCI EAFE Index -13.75 -11.00 6.37 -12.94 1.35 15.67 fference 0.39 0.01 5.54 N/A N/A 3.54 )tal Fixed Income 2.93 6.05 11.42 7.86 5.84 5.53 06/01/2002 irclays Capital Intermediate Aggregate 2.92 5.34 8.72 7.34 5.57 5.39 fference 0.01 0.71 2.70 0.52 0.27 0.14 ;incourt Capital Management 3.67 6.51 10.78 N/A N/A 9.74 09/01/2008 irclays Capital Aggregate 3.49 5.55 9.50 7.55 5.54 7.98 fference 0.18 0.96 1.28 N/A N/A 1.76 ivis,Hamilton,Jackson & Assoc. Fixed 2.24 5.62 12.03 N/A N/A 8.59 06/01/2008 trclays Capital Intermediate Aggregate 2.92 5.34 8.72 7.34 5.57 fference -0.68 0.28 3.31 N/A N/A 1.55 nerican Real Estate Fund 3.26 -1.76 -11.22 -10.22 N/A -5.02 08/01/2006 ;al Estate Policy N/A N/A N/A N/A N/A N/A fference N/A N/A N/A N/A N/A N/A Returns for periods greater than 1 yr. are annualized. Returns are expressed as percentages .1�HF, Total Fund Policy--55% Russell 3000,25% Barclays Intermediate Aggregate, 10% MSCI EAFE, & 10% NCREIF $ Q�DAH 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. �T (" Roup Page 16 Palm Beach Gardens Firefighters' Comparative Performance As of June 30, 2010 otal Fund Portfolio (Net) -0.46 -12.30 10.96 7.92 13.82 10.51 11.42 otal Fund Policy -1.86 - 14.,02 13.; , 9. � 0 9.23 9.84 ,ifference 1.40 1.72 -2.43 -1.24 4.59 0.67 -6.40 otal Fund Portfolio (Gross) 0.00 -11.96 11.67 8.65 14.35 11.19 12.28 otal Fund Policy -1.86 -14.02 13.39 9.16 9.23 9.84 17.82 ifference 1.86 2.06 -1.72 -0.51 5.12 1.35 -5.54 otal Equity -1.59 N/A N/A N/A N/A N/A N/A otal Equity Policy -4.90 N/A N/A N/A N/A N/A N/A ifference 3.31 N/A N/A N/A N/A N/A N/A otal Domestic Equity -3.91 -18.11 14.18 10.21 21.50 15.99 20.02 ussell 3000 -6.42 -21.52 16.52 10.22 12.69 13.87 24.40 ,ifference 2.51 3.41 -2.34 -0.01 8.81 2.12 -4.38 ,ana Equity Portfolio -10.07 -19.54 14.18 10.21 21.50 15.99 20.02 &P 500 -6.91 -21.98 16.44 10.79 12.25 13.87 24.40 ifference -3.16 2.44 -2.26 -0.58 9.25 2.12 -4.38 ,ana Growth (Equity) N/A N/A N/A N/A N/A N/A N/A ussell 1000 Growth Index 11, "Y 19.35 6.04 11.60 7.51 25.92 ifference N/A N/A N/A N/A N/A N/A N/A otal International Equity 11.28 -30.51 24.22 N/A N/A N/A N/A ISCI EAFE Index 3.80 -30.13 25.38 19.65 26.32 22.52 26.54 ifference 7.48 -0.38 -1.16 N/A N/A N/A N/A Returns for periods greater than 1 yr. are annualized. Returns are expressed as percentages TH}., Total Fund Policy--55% Russell 3000,25% Barclays Intermediate Aggregate, 10% MSCI EAFE, & 10% NCREIF Q�DAH 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. �T (" Roup Page 17 Palm Beach Gardens Firefighters' Comparative Performance As of June 30, 2010 Global (voyageur) International Portfolio 7.72 -29.87 24.22 N/A N/A N/A N/A EAFE Index 3.80 -30.13 25.38 19.65 26.32 22.52 26.54 •ence 3.92 0.26 -1.16 N/A N/A N/A N/A ling & Napier Overseas (EXOSX) N/A N/A N/A N/A N/A N/A N/A EAFE Index 3.80 -30.13 25.38 19.65 26.32 22.52 26.54 ence N/A N/A N/A N/A N/A N/A N/A Fixed Income 15.33 0.03 5.24 3.64 1.77 2.56 2.77 iys Capital Intermediate Aggregate 9.69 4.16 5.33 3.84 2.23 3.39 4.94 ence 5.64 -4.13 -0.09 -0.20 -0.46 -0.83 -2.17 court Capital Management 14.76 N/A N/A N/A N/A N/A N/A iys Capital Aggregate 10.56 3.65 5.14 3.67 2.80 3.68 5.40 •ence 4.20 N/A N/A N/A N/A N/A N/A ,Hamiltonjackson & Assoc. Fixed 15.91 N/A N/A N/A N/A N/A N/A ays Capital Intermediate Aggregate 9.69 4.16 5.33 3.84 2.23 3.39 4.94 •ence 6.22 N/A N/A N/A N/A N/A N/A erican Real Estate Fund -32.96 4.98 16.31 N/A N/A N/A N/A 1 Estate Policy -35.19 3.18 18.21 N/A N/A N/A N/A 'erence 2.23 1.80 -1.90 N/A N/A N/A 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 a $ Q�DAH 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. �T (" Roup Page 18 Historical Total Fund Palm Beach Gardens Firefighters' Benchmark History As of June 30, 2010 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 Page 19 Historical Hvbrid Comnosition Dana Fixed 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 11 11 �*"� 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 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 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. Information 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. Consistency -- 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. Excess Return -- Arithmetic difference between the managers return and the risk -free return over a specified time period. Active Return -- Arithmetic difference between the managers return and the benchmark return over a specified time period. Excess 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. Page 20 THE BOGDAHN GROUP Chicago 4320 Winfield Road Suite 200 Warrenville, Illinois 60555 THE BOGDAHN GROUP simplifying your investment and fiduciary y decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 Cleveland 6100 Oak Tree Blvd, Suite 200 Independence, Ohio 44131 866.240.7932 Milwaukee 250 E. Wisconsin Ave Suite 1800 Milwaukee, Wisconsin 53202 290 Woodcliff Drive Fairport, NY 14450 1.800.551.0224 58 5.32 5.6880 585.325.5617 fax June 11, 2010 Dear Client: As an employee -owned firm, Manning & Napier has worked hard to establish a strong management succession plan that will serve our clients, employees and shareholders long into the future. At this time, I am pleased to announce that the firm has enacted a plan developed several years ago by our Executive Group, which prompts the following changes to our management structure: ■ Patrick Cunningham, an 18 -year veteran and shareholder of the firm, has been elevated to the role of Chief Executive Officer of Manning & Napier Advisors, Inc. In this capacity, Patrick's primary responsibility will be to oversee the business and outline the broad vision of the firm. Since joining the firm, Patrick has taken on important management responsibilities, including positions of Managing Director, Client Relations, Sales Management and Executive Group member. His experience, tenure and commitment to the firm make him ideally suited to take on this new responsibility in the next phase of the firm's growth. ■ Jeff Coons, a 25 -year veteran and shareholder of the firm and current Co- Director of Research, has been elevated to the role of President of Manning & Napier Advisors, Inc. While Jeff will retain his position as Co-Director of Research and will remain a member of our Senior Research Group, he will now have broad responsibility for carrying out the vision of the firm. ■ The Executive Group, which has been acting as the CEO of the firm since 2003, will continue as an advisory board to the CEO, and Executive Group members will maintain their senior management responsibilities. Page 2 This transition comes at a unique point in time for Manning & Napier and for our industry as a whole. The last ten years have represented the most dynamic environment of our 40 year history. Since we opened our doors in 1970, never have we seen such dramatic industry and market events or volatile market conditions as those over the past ten years. Perhaps not surprising, this environment has resulted in unprecedented interest in our absolute return - oriented investment approach. Consider the following: ■ The firm has experienced unprecedented growth. Total assets under management have grown to more than $30 billion, a new record for the firm. Individual and institutional investors have driven our mutual fund and collective investment trust assets from just under $2 billion at the end of 2004 to more than $13 billion today. ■ The globalization of markets has highlighted a need for greater insight, a broader focus, and more resources. In today's markets, a sound investment approach must be able to analyze, interpret and account for conditions across the globe, in both developed and emerging markets. Our Research staff has increased from 40 to more than 60 individuals over the past four years, and we remain committed to growing these resources. ■ Healthy investment returns are no longer enough for clients to succeed. Retirement savings are being undermined by rapidly rising health care costs, with no end in sight. This development is problematic not only for retirees but also for Plan Sponsors and other fiduciaries responsible for employee benefits. Manning & Napier has developed numerous products and services to address the convergence of health and wealth, both of which ultimately drive the success of any retirement program. While we believe this change to our organizational structure will serve to strengthen the firm going forward, I want to be clear about what isn t changing at Manning & Napier: ■ Although we have had offers from other firms, we remain employee- owned, and we will not entertain offers or make acquisitions that are not in the best interests of our clients. I continue to be the majority shareholder, and 44 additional employees currently have an ownership stake. We plan to continue to extend ownership opportunities to key employees that demonstrate ability and commitment to the firm and our clients. ■ Our investment process will continue to be driven by our time - tested strategies, pricing disciplines and the oversight of our Senior Research Group. Changes to our management structure will not in any way impact the long- tenured, team -based process that has been the driver of our investment results in the past. In fact, one of Patrick's primary responsibilities will be to ensure we stay committed to these time - tested processes. Page 3 While the world is growing increasingly complex, Manning & Napier is busy planning for the future and growing stronger. As we look ahead, we understand that the keys to continuing a high level of client service are to be open to new ideas and to take a proactive and prudent approach to managing growth. Our humble attitude is that whatever we have done in the past can always be improved to ensure your loyalty and trust. The naming of a CEO and President represents a major milestone in our corporate history that illustrates our commitment to our current and future clients. We are excited about the opportunities that await us as we take this next step forward. Sincerely, William Manning Chairman of the Board Steven I. Gordon Certified Public Accountant American Institute of Certified Public Accountants Florida Institute of Certified Public Accountants July 1, 2010 Board of Trustees City of Palm Beach Gardens Firefighters' Pension Trust. Fund Palm Beach Gardens, Florida I am pleased to confirm my understanding of the services I am to provide for City of Palm Beach Gardens Firefighters' Pension Trust Fund for the year ended September 30, 2010. I will audit the net assets available for benefits of Financial Statements of City of Palm Beach Gardens Firefighters' Pension Trust Fund as of September 30, 2010 and the related statements of changes in net assets for the year then ended. Accounting standards generally accepted in the United States provide for certain required supplementary information (RSI) to supplement City of Palm Beach Gardens Firefighters' Pension Trust Fund's basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to City of Palm Beach Gardens Firefighters' Pension Trust Fund's RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not bee audited: Management's Discussion and Analysis, Schedule of Funding Progress and Schedule of Contributions from Employer and Other Contributors. The objective of my audit is the expression of an opinion as to whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and whether the supplemental schedules are fairly stated in all material respects in relation to the basic financial statements taken as a whole. My audit will be conducted in accordance with U.S. generally accepted auditing standards and will include tests of the accounting records of City of Palm Beach Gardens Firefighters' Pension Trust Fund and other procedures I consider necessary to enable me to express such an opinion. If my opinion is other than unqualified, I will discuss the reasons with you in advance. If, for any reason, I am unable to complete the audit or am unable to form or have not formed an opinion, I may decline to express an opinion or to issue a report as a result of this engagement. 4600 W. Commercial Blvd. Suite 5 Tamarac, FL 3330 Voice (954) 485 -5788 Fax (954) 485 -8588 Audit Procedures Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts and direct confirmation of investments, benefit obligations, and certain other assets and liabilities by correspondence with financial institutions, and other third parties. I will also request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of my audit, I will require certain written representations from you about the financial statements and related matters. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, my audit will involve judgment about the number of transactions to be examined and the areas to be tested. Also, I will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from errors, fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental regulations, that are attributable to the plan or to acts by management or employees acting on behalf of the plan. Because an audit is designed to provide reasonable, but not absolute, assurance and because I will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by me. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, I will inform you of any material errors that come to my attention, and I will inform you of any fraudulent financial reporting or misappropriation of assets that comes to my attention. I will also inform you of any violations of laws or governmental regulations that come to my attention, unless clearly inconsequential. My responsibility as auditor is limited to the period covered by my audit and does not extend to any later periods for which I am not engaged as auditor. My audit will include obtaining an understanding of internal control sufficient to plan the audit and to determine the nature, timing, and extent of audit procedures to be performed. An audit is not designed to provide assurance on internal control or to identify reportable conditions, that is, significant deficiencies in the design or operation of internal control. However, during the audit, if I become aware of such reportable conditions, I will communicate them to the board of trustees in a separate letter. In addition, I will perform certain procedures directed at considering the Plan's compliance with applicable Internal Revenue Service (IRS) requirements for tax - exempt status. However, you should understand that my audit is not specifically designed for and should not be relied upon to disclose matters affecting plan qualifications or compliance with IRS requirements. If during the audit I become aware of any instances of any such matters or ways in which management practices can bee improved, I will communicate them to you. Management Responsibilities You are responsible for making all financial records and related information available to me and for the accuracy and completeness of that information. I will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you.. This responsibility includes the establishment and maintenance of adequate records and effective internal controls over financial reporting, the selection and application of accounting principles, and the safeguarding of assets. You are responsible for adjusting the financial statements to correct material misstatements and for confirming to me in the management representation letter that the effects of any uncorrected misstatements aggregated by me during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. You are also responsible for identifying and ensuring that the plan complies with applicable laws and regulations. Fees and Other My fees for these services will be $5,450. You will also be billed for travel and other out -of- pocket costs, if any. Should you request me to prepare the state annual report I would charge $1,000 for the service. The fee estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, I will discuss it with you and arrive at a new fee estimate before I incur the additional costs. My invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with my firm policies, work may be suspended if your account is overdue and will not be resumed until your account is paid in full. If I elect to terminate my services for nonpayment, my engagement will be deemed to have been completed upon written notification of termination, even if I have not completed my report. You will be obligated to compensate me for all time expended and to reimburse me for all out -of- pocket expenditures through the date of termination. I appreciate the opportunity to be of service to the City of Palm Beach Gardens Firefighters' Pension Trust Fund and believe this letter accurately summarizes the significant terms of my engagement. If you have any questions, please let me know. If you agree with the terms of my engagement as described in this letter, please sign the enclosed copy and return it to me. Very trul yours, V Steven I. Gordon, CPA RESPONSE: This letter correctly sets forth the understanding of City of Palm Beach Gardens Firefighters' Pension Trust Fund. For the Plan: Title: Bate: PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND DISBURSEMENTS July 26, 2010 • THE RESOURCE CENTERS, LLC. $ 3,303.16 (Bill for services for June and July 2010) • REGIONS MORGAN KEEGAN TRUST $ 2,031.92 (Custodial Fees for April and May 2010) • SUGARMAN & SUSSKIND $ 5,075.85 (Fees for legal services for April, May and June 2010) • BOGDAHN CONSULTING, LLC. $ 5,625.00 (2nd Quarter 2010 Monitoring Fee) • AGINCOURT CAPITAL MANAGEMENT $ 2,668.90 (1St Quarter 2010 Management Fee) • TOM MURPHY $ 158.00 (Reimbursement for mileage for FPPTA Conference in June 2010) • ED MOREJON $ 394.00 (Reimbursement for mileage and per diem for FPPTA Conference in June 2010) • NAPLES GRAND RESORT $ 700.00 (Reservations for Ed Morejon for FPPTA Conference in June 2010) • FPPTA $ 500.00 (Registration for Ed Morejon for FPPTA Conference in June 2010) Total Disbursements for Approval $ 20,456.83 (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 # 6/30/2010 10744 P.O. Number Terms Rep Ship Via F.O.B. Project 6/30/2010 Quantity Item Code Description Price Each Amount Palm Beach Garde... FED -EX Palm Beach Gardens Firefighters' Admin Fee for the month of July 2010 FED -EX Overnight Shipping - 2 Packages 1,625.00 53.16 1,625.00 53.16 Total x1,678.16 Resource Centers, LLC 4360 Notthlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Bill To Palm Beach Gardens Fircfighters' Pension Fund Ship To Invoice Date Invoice # 5/26/2010 10704 P.O. Number Terms Rep Ship Via F.O.B. Project 5/26/2010 Quantity Item Code Description Price Each Amount Palm Beach Garden... Palm Beach Gardens Firefighters' Admin Fee for the month of June 2010 1,625.00 1,625.00 Total $1,626.00 A REGIONS MORGAN KEEGAN Post Office Box 12385 Birmingham, Alabama 35202 -2385 STATEMENT OF TRUSTEES FEES INVOICE DATE 06/10/2010 ACCOUNT # 3320005077 ACCOUNT NAME: PB GARDENS FIRE J. SCOTT BAUR TEGRIT PLAN ADMINISTRATORS 4360 NORTZW= BLVD, SUITE 206 PALES BEACH GARDEN FL 33410 MARKET VALUE PERIOD ENDING 05/31/2010 29,900,110.18 0.0000083333 24,916.66 24,916.66 $ 24,916.66 FEE CALCULATION DETAIL 05/01/2010 - 05/31/2010 ITEM AMOUNT -------------------------- - - - - -- ------ - - - - -- DISCOUNT: PERIOD ENDING 05/31/2010 23,919.99 - TOTAL $ 23,919.99- SUMMARY OF FEE CALCULATION DETAIL ITEM AMOUNT ------------------------- -- - - - -- ------ - - - - -- MARKET VALUE 24,916.66 DISCOUNT 23,919.99 - TOTAL AMOUNT DUE FOR CURRENT PERIOD $ 996.67 FOR FEE CALCULATION PERIOD 05/01/2010 - 05/31/2010 CONSOLIDATED ACCOUNT PRORATION FOR MASTER ACCOUNT M21485 PALM BCH GARDENS ACCOUNT INVOICE NUMBER 61248 $ 2,031.92 PERCENTAGE SUMMARY OF ACCOUNT CHARGE /BILL FEE 2850000097 PB GARDENS DROP PREVIOUS BALANCE 2,992.36 BILL TO A/C PAYMENTS RECEIVED: 1,957.11 - PB CURRENT FEE: 996.67 173.51 BALANCE DUE $ 2,031.92 3320010132 FEE CALCULATION DETAIL 05/01/2010 - 05/31/2010 6.68021545% 66.58 BILL TO A/C DESCRIPTION / RATE FEE TOTAL BASIS 25.13117519% 250.47 MARKET VALUE PERIOD ENDING 05/31/2010 29,900,110.18 0.0000083333 24,916.66 24,916.66 $ 24,916.66 FEE CALCULATION DETAIL 05/01/2010 - 05/31/2010 ITEM AMOUNT -------------------------- - - - - -- ------ - - - - -- DISCOUNT: PERIOD ENDING 05/31/2010 23,919.99 - TOTAL $ 23,919.99- SUMMARY OF FEE CALCULATION DETAIL ITEM AMOUNT ------------------------- -- - - - -- ------ - - - - -- MARKET VALUE 24,916.66 DISCOUNT 23,919.99 - TOTAL AMOUNT DUE FOR CURRENT PERIOD $ 996.67 FOR FEE CALCULATION PERIOD 05/01/2010 - 05/31/2010 CONSOLIDATED ACCOUNT PRORATION FOR MASTER ACCOUNT M21485 PALM BCH GARDENS ACCOUNT NAME PERCENTAGE AMOUNT CHARGE /BILL FEE 2850000097 PB GARDENS DROP 0.53855741% 5.37 BILL TO A/C 3320005077 3320005077 PB GARDENS FIRE 17.40849635% 173.51 BILL 3320010132 PB GARDENS FREED 6.68021545% 66.58 BILL TO A/C 3320005077 3350000088 PB GARD FIRE EQ 25.13117519% 250.47 BILL TO A/C 3320005077 3350000097 PB GARD FIRE FXD 15.43512276% 153.84 BILL TO A/C 3320005077 3350000104 PB GARD FIRE AGN 14.46103126% 144.13 BILL TO A/C 3320005077 3350000113 PB GAR DANA GRTH 20.34540158% 202.77 BILL TO A/C 3320005077 REGIONS MORGAN KEEGAN Post Office Box 12385 Birmingham, Alabama 35202 -2385 STATEMENT OF TRUSTEES FEES INVOICE DATE 06/10/2010 2 ACCOUNT NAME PERCENTAGE MARKET VALUE 2850000097 PB GARDENS DROP 0.53855741% 161,029.26 3320005077 PB GARDENS FIRE 17.408496358 5,205,159.59 3320010132 PB GARDENS FREED 6.680215458 1,997,391.78 3350000088 PB GARD FIRE EQ 25.131175198 7,514,249.07 3350000097 PB GARD FIRE FXD 15.435122768 4,615,118.71 3350000104 PB GARD FIRE AGN 14.461031268 4,323,864.28 3350000113 PB GAR DANA GRTH 20.345401588 6,083,297.49 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 05/11/2010 ACCOUNT # 3320005077 ACCOUNT NAME: PB GARDENS FIRE J. SCOTT BAUR TEGRIT PLAN ADMINISTRATORS 4360 NORTHLAKE BLVD, SUITE 206 PALM BEACH GARDEN FL 33410 INVOICE NUMBER 60589 $ 2,992.36 SUMMARY OF ACCOUNT PREVIOUS BALANCE 1,957.11 CURRENT FEE: 1,035.25 BALANCE DUE $ 2,992.36 FEE CALCULATION DETAIL 04/01/2010 - 04/30/2010 + + + + + + + + + + + + + + + ++ + + + + + + + + + + + + + + + + + + + + + ++ + + + + + + + + + + + ++ + + + + + + + + + + + ++ DESCRIPTION / RATE FEE TOTAL BASIS MARKET VALUE PERIOD ENDING 04/30/2010 31,057,515.79 0.0000083333 25,881.16 25,881.16 $ 25,881.16 FEE CALCULATION DETAIL 04/01/2010 - 04/30/2010 ITEM AMOUNT -------------------------- - - -- -- ------ - - - - -- DISCOUNT: PERIOD ENDING 04/30/2010 24,845.91 - TOTAL $ 24,845.91- SUMMARY OF FEE CALCULATION DETAIL + + + + + + + + + + + + + + + ++ + + + + + + + + + + + + + + + + + + + + + ++ + + + + + + + + + + + ++ + + + + + + + + + + + ++ ITEM AMOUNT ---------- --------- -•------ - - - - -- ------ - - - - -- MARKET VALUE 25,881.16 DISCOUNT 24,845.91 - TOTAL AMOUNT DUE FOR CURRENT PERIOD $ 1,035.25 FOR FEE CALCULATION PERIOD 04 /01/2010 - 04/30/2010 CONSOLIDATED ACCOUNT PRORATION FOR 24ASTER ACCOUNT M21485 PALM BCH GARDENS MAY 17 1010 ACCOUNT NAME PERCENTAGE AMOUNT CHARGE /BILL FEE 2850000097 PB GARDENS DROP 0.48607896% 5.03 BILL TO A/C 3320005077 3320005077 PB GARDENS FIRE 17.28841433% 178.98 BILL 3320010132 PB GARDENS FREED 6.43100235% 66.58 BILL TO A/C 3320005077 3350000088 PB GARD FIRE EQ 25.97277227% 268.88 BILL TO A/C 3320005077 3350000097 PB GARD FIRE FXD 14.85082568% 153.74 BILL TO A/C 3320005077 3350000104 PB GARD FIRE AGN 13.79807599% 142.84 BILL TO A/C 3320005077 3350000113 PB GAR DANA GRTH 21.17283042% 219.20 BILL TO A/C 3320005077 REGIONS MORGAN KEEGAN Post Office Box 12385 1, R t_( `? - Birmingham, Alabama 35202 -2385 STATEMENT OF TRUSTEES FEES INVOICE DATE 05/11/2010 2 ACCOUNT NAME PERCENTAGE MARKET VALUE 2850000097 PB GARDENS DROP 0.48607896% 150,964.05 3320005077 PB GARDENS FIRE 17.28841433% 5,369,352.01 3320010132 PB GARDENS FREED 6.43100235% 1,997,309.57 3350000088 PB GARD FIRE EQ 25.97277227% 8,066,497.85 3350000097 PB CARD FIRE FXD 14.85082568% 4,612,297.53 3350000104 PB GARD FIRE AGN 13.79807599% 4,285,339.63 3350000113 PB GAR DANA GRTH 21.17283042% 6,575,755.15 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- LeBeou Noah S. Warman SUGARMAN & SUSSKIND PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW June 29, 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: TOTAL AMOUNT DUE: 3,334.50 0.00 5,972.85 4,231.50 -ck# 169915 5,075.85 100 Miracle Mile Suite 300 Coral Gables, Florida 33134 (305)529 -2801 Broward 763 -2566 Toll Free 1- 800 -329 -2122 Facsimile (305) 447 -8115 JUL I;1 i(i') 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 Previous balance 6/8/2010 Payment -Thank You. Check No. 169915 Total payments and adjustments Balance due Client:Matter PBGF:ACTU In Reference To: Actuarial Services June 29, 2010 Amount $213.75 ($213.75) ($213.75) $0.00 Amount Previous balance $376.20 6/8/2010 Payment -Thank You. Check No. 169915 Total payments and adjustments Balance due Client:Matter PBGF:MEET ($142.501 ($142.50) $233.70 City of Palm Beach Gardens Firefighters' Pension Fund In Reference To: Meeting Professional Services 6/18/2010 Attend meeting. Prepare for meeting. Travel. For professional services rendered Previous balance 61812010 Payment -Thank You. Check No. 169915 Total payments and adjustments Balance due Client:Matter PBGF:MISC In Reference To: Miscellaneous Page 2 Hrs/Rate Amount 7.50 2,137.50 285.00/hr 7.50 $2,137.50 $3,647.25 147 770 7R1 ($2,279.25) $3,505.50 Amount Previous balance $242.25 6/8/2010 Payment - Thank You. Check No. 169915 ($242.25) Total payments and adjustments ($242.25) Balance due Client:Matter PBGF:MNTS In Reference To: Minutes of Meetings Previous balance 6/8/2010 Payment -Thank You. Check No. 169915 $0.00 Amount $285.00 ($285.00) City of Palm Beach Gardens Firefighters' Pension Fund Page 3 Amount Total payments and adjustments ($285.00) Balance due $0.00 Client:Matter PBGF:ORDN In Reference To: Ordinances Professional Services 6/14/2010 Review, research and respond e-mail city attorney reference revised ordinance amendment 6/16/2010 Review, research and respond e-mail client reference copy of city attorney revised ordinance amendment For professional services rendered Previous balance 6/8/2010 Payment - Thank You. Check No. 169915 Total payments and adjustments Balance due Client :Matter PBGF:PLAN In Reference To: Plan Hrs /Rate Amount 1.50 427.50 285.00/hr 0.50 142.50 285.00 /hr 2.00 $570.00 $285.00 tenor. nnx (Utibmu) 4.1•TIOX114: Professional Services Hrs /Rate Amount 6/24/2010 Review and edit IRC Compliance ordinance. 1.20 342.00 285.00/hr City of Palm Beach Gardens Firefighters' Pension Fund For professional services rendered Previous balance 6/8/2010 Payment - Thank You. Check No. 169915 Total payments and adjustments Balance due Client:Matter PBGF:SIPO In Reference To: Statement of Investment Policy Page 4 Hours Amount 1.20 $342.00 $424.65 117R5 nn) ($285.00) $481.65 Professional Services Hrs /Rate Amount 6/16/2010 Receipt and review of revised IPS. Review and edit. 0.60 171.00 285.00 /hr 6/21/2010 Review I PS. 0.40 114.00 285.00/hr For professional services rendered 1.00 $285.00 Previous balance $498.75 6/8/2010 Payment - Thank You. Check No. 169915 ($498.75) Total payments and adjustments ($498.75) Balance due $285.00 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 June 7, 2010 City of Palm Beach Gardens Firefighters' Pension Pund c/o Margaret M. Adcock, Administrator The Pension Resource Center, Inc. 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, Florida 33410 CURRENT FEES: 1,368.00 CURRENT COSTS: 0.00 PREVIOUS BALANCE: 4,604.85 PAYMENTS RECEIVED: 0.00 TOTAI. AMOUNT DUI;: 5,972.85 100 Miracle Mile Suite 300 Coral Gables, Florida 33134 (305) 529 -2801 Broward 763 -2566 Toll Free 1- 800 -329 -2122 Facsimile (305) 447-8115 ?ECEiVED JUN 1 0 710 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 c/o 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 Previous balance Balance due Client:Matter PBGF:ACTU In Reference To: Actuarial Services Previous balance Balance due Client:Matter PBGF:MEET In Reference To: Meeting June 03, 2010 Amount $213.75 $213.75 Amount $376.20 $376.20 City of Palm Beach Gardens Firefighters' Pension Fund Page 2 Professional Services Hrs /Rate Amount 5/3/2010 Review and edit March 15 minutes, email to PRC 0.30 85.50 285.00 /hr 5/10/2010 Prepare for meeting, Attend meeting 4.50 1,282.50 285.001hr For professional services rendered 4.80 $1,368.00 Previous balance $2,279.25 Balance due $3,647.25 Client:Matter PBGF:MISC In Reference To: Miscellaneous Amount Previous balance $242.25 Balance due $242.25 Client:Matter PBGF:MNTS In Reference To: Minutes of Meetings Amount Previous balance $285.00 Balance due $285.00 Client:Matter PBGF:ORDN In Reference To: Ordinances City of Palm Beach Gardens Firefighters' Pension Fund Page 3 Amount Previous balance $285.00 Balance due $285.00 Client:Matter • PBGF:PLAN In Reference To: Plan Amount Previous balance $424.65 Balance due $424.65 Client:Matter PBGF:SIPO In Reference To: Statement of Investment Policy Amount Previous balance $498.75 Balance due $498.75 Rober' A. Sugarman Howes J 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 May 4, 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: 373.35 CURRENT COSTS: 0.00 PREVIOUS BALANCE: 4,231.50 PAYMENTS RECEIVED: 0.00 TOTAL AMOUNT DUE: 4,604.85 100 Miracle Mile Suite 300 Coral Gables, Florida 33134 (305) 529 -2801 Broward 763 -2566 Toll Free 1 -800- 329 -2122 Facsimile (305) 447 -8115 RECEIVE0 MAY 10 210 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 c/o 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: Accountants Inquiry Letters May 04, 2010 Amount Previous balance $213.75 Balance due $213.75 Client:Matter PBGF:ACTU In Reference To: Actuarial Services Professional Services 4/20/2010 Review Amendment to Actuarial Services Agreement. Email to ADMN regarding same. Receipt and review of Fee Amendment to GRS Agreement. Email to ADMN regarding same. For professional services rendered Previous balance Hrs /Rate Amount 0.46 131.10 285.00 /hr 0.36 102.60 285.001hr 0.82 $233.70 $142.50 Balance due $376.20 City of Palm Beach Gardens Firefighters' Pension Fund Page 2 Client:Matter PBGF:MEET In Reference To: Meeting Amount Previous balance $2,279.25 Balance due $2,279.25 Client:Matter PBGF:MISC In Reference To: Miscellaneous Amount Previous balance $242.25 Balance due $242.25 Client:Matter PBGF:MNTS In Reference To: Minutes of Meetings Amount Previous balance $285.00 Balance due $285.00 Client:Matter PBGF:ORDN In Reference To: Ordinances Amount Previous balance $285.00 %* . O City of Palm Beach Gardens Firefighters' Pension Fund Page 3 Amount Balance due $255.00 Client:Matter PBGF:PLAN In Reference To: Plan Professional Services Hrs /Rate Amount 4/1/2010 Review ordinance amendment and Telephone city attorney 0.25 71.25 285.00 /hr 4/612010 Review and edit proposed Ch. 2009 -97 ord. 0.24 68.40 285.00 /hr For professional services rendered 0.49 $139.65 Previous balance $285.00 Balance due $424.65 Client:Matter PBGF:SIPO In Reference To: Statement of Investment Policy Previous balance Amount $498.75 Balance due $495• R) THE BOGDAHN GRoup 340 West Central Avenue Suite 300 Winter Haven, FL 33880 Bill To Palm Beach Gardens Firefighters' Pension Email: Margie Adcock Email: Payment Group Invoice Date Invoice # 6/23/2010 5308 Description Amount Performance Evaluation and Consulting Services 4/1/2010-6/30/2010 5,625.00 Balance Due $5,625.00 o�" C:uTt a MAN,►cEMr:N r, t.i.t RECEIVED Date: 4/28/2010 Invoice: Ms. Margaret M. Adcock MAY 0 3 2010 City of Palm Beach Gardens Firefighters' Retirement System The Pension Resource Center, Inc. 4360 Northlake Blvd., Ste. 206 Palm Beach Gardens, FL 33410 Re: City of Palm Beach Garden Firefighters' Retirem Account #: 3350000104 Per our Investment Management Agreement, the fees to Agincourt Capital Management in payment for investment services rendered from 1/ 1/2010 - 3/31/20 10: Monthly Market Values: 1/31/2010 $4,260,458.18 2/28/2010 $4,275,686.07 3/31/2010 $4,274,583.20 Average Market Value: $4,270,242.48 $4,270,242.48 x 0.2500% = $10,675.61 x = x = Total Annual Fee: $10,675.61 Total Quarterly Fee:.- _ - $2,668.90 • Agincourt Capital Management, LLC Federal Tar 1D: 54- 1947440 CC: Joe Bogdahn Payment Due lVithin 30 Days to: Agincourt Capital Management, LLC IHMIA CH. Branch Banking & Trust (BB &T) or Agincourt Capital Management, LLC 823 East Alain Street ATTN. Laura Haynie Richmond, VA 23219 600 East Main Street, Suite 2120 ABA# 051404260 Richmond, VA 23219 Account# 5131720132 FBO: Agincourt Capital Management, LLC Please let its know jyorry�f�Ifi' ttti' `Lol�Kfi�iY.tfGl�(r;��it'�i{i� i°,rin {1C1D V or otrr Code ojEtlric:s boo EAST MAIN STRUT, SUITE 2120 • Rici IMOND, VIRGINIA 23219 TFI.t.i,i1ONF (804) 648 -1111 • F..L\ (804) 648 -4475