HomeMy WebLinkAboutAgenda Fire Pension 110810THE 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, November 8, 2010
Location: Council Chambers, Palm Beach Gardens City Hall
10500 North Military Trail
Palm Beach Gardens, FL 33410
Time: 9:00 A.M.
AGENDA
1. Call Meeting to Order
2. Minutes of Meetings Held September 20, 2010 and October 4, 2010
3. Investment Manager Report: Dana Investment Advisors
4. Investment Monitor Report: Bogdahn Consulting
5. Attorney Report: Pedro Hererra
• Status of Proposed Ordinance
6. Administrative Report: Margie Adcock
• Disbursements
7. Other Business
• Review Status of Disability Recipients
• Board Review of Current Contract with Administrator
• 2011 Meeting Dates
8. Schedule Next Meeting: Monday, January 24, 2011 at 9:00 A.M.
9. Adjourn
PLEASE NOTE:
Should any interested party seek to appeal any decision made by the Board with respect to any matter
considered at such meeting or hearing, he will need a record of the proceedings, and for such purpose he
may need to insure that a verbatim record of the proceedings is made, which record includes the testimony
and evidence upon which the appeal is to be based. In accordance with the Americans With Disabilities Act
of 1990, persons needing a special accommodation to participate in this meeting should contact The
Resource Centers, LLC no later than four days prior to the meeting.
PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND
MINUTES OF MEETING HELD
September 20, 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 OTHERS
Tom Murphy
Roy 011iff
Ed Morejon (9:08 A.M.)
Donna Wisneski
Rick Rhodes
MINUTES
Margie Adcock, Administrator
Pedro Herrera, Attorney
Joe Bogdahn, Investment Monitor
Cindy Farrow and David Falconer, Custodian
The Board reviewed the minutes of the meetings held July 26, 2010. A motion was
made, seconded and carried 4 -0 to accept the minutes of the meeting held July 26, 2010.
CUSTODIAN REPORT
Cindy Farrow and David Falconer appeared before the Board. Mr. Falconer is the Trust
Services Manager for Regions Morgan Keegan Trust and Ms. Farrow is the Relationship
Manager. Mr. Falconer gave a brief introduction and overview of the firm. He stated
that they were part of Regions Financial Corporation, which Corporation has $142 billion
in assets with $18.6 billion in Florida bank deposits.
Ed Morejon entered the meeting.
Mr. Falconer stated that Regions Morgan Keegan Trust is part of the Trust and Asset
Management Division of Regions Financial Corporation. It has $70 billion in assets and
is the nations fourth largest corporate trustee. They have 8 Florida offices and 37,000
client accounts. They have the breadth and depth of resources to provide a very good job
for the Fund. Ms. Farrow discussed the custodial services provided to the Board. She
noted that they do not outsource any services. She discussed Internet access as well. Ms.
Wisneski requested summarized quarterly statements of the account. Mr. Morejon stated
that the entire Board should get a copy. Ms. Farrow stated that she would forward that
information to the Administrator each quarter. Ms. Farrow noted that the Fund has seven
sub - accounts that are all rolled up into a master account. There was also discussion on
the cash in the account and possible notification of excess cash that may be in the R &D
account. It was noted that the Investment Consultant monitors the cash in the account.
Farrow discussed the local management team. She reviewed the custody services team.
She provided a representative client list. She revised the seven current sub - accounts of
the Fund. The fee for their services is 4 basis points, which is an all- inclusive fee. It was
noted that the Custodian files and settles all class actions.
2
INVESTMENT MONITOR REPORT
Joe Bogdahn appeared before the Board. He continued discussing the review of real
estate current market conditions from last meeting. He reviewed the real estate market
conditions. He reviewed the cap rate spread to the 10 year Treasury. He noted that
Intercontinental is 88% occupied currently with 7% cash income coming through. He
stated that valuations have been written down in their entire portfolio so they have
reappraised their entire portfolio. He reviewed the allocation considerations such as the
rising interest rates and inflation. He reviewed the bond price change implications by
maturity for rising and falling interest rates. He noted that currently there is a 2.5%
allocation to real estate and the target is 10 %. He would like the Fund to get back up to
the target. Mr. Bogdahn recommended allocation money to the real estate component.
He stated that the Fund would have some significant headwinds and risk in bonds.
Mr. Herrera stated that the Intercontinental agreement is fine and ready to go. He did not
bring the agreement with him to the meeting, but would email it for the Chair to sign.
Mr. Bogdahn stated that he would notify both American Realty and Intercontinental of
the mandates of the Board.
ATTORNEY REPORT
Mr. Herrera discussed the status of the proposed Ordinance. Mr. Morejon stated that he
thought the Board and the professionals did everything they could to explain the issue
very clearly. He stated that on Thursday the City Council Members understood that it
was going to save money because a person entering the DROP is no longer accruing a
benefit. In the end the City Council Members were unwilling to go against the City
Manager's direction. The City is going to hire someone to do a pension study. Ms.
Wisneski stated that she thought the Board should obtain a copy of the recording of the
City Council meeting. It was noted that 90% of the Ordinance was approved, but the 3%
guaranteed interest on the DROP was not approved. It was noted that the Council did
state that they would consider a retroactive change to October 1 for those Participants
currently in the DROP. Mr. Bogdahn stated that he would revise the Investment Policy
Statement for the increase in the asset allocation for international under the new
Ordinance.
Mr. Herrera provided the Board with a Memorandum regarding an IRS determination
letter request dated September 13, 2010. He recommended the Fund apply for a
favorable determination letter during Cycle E, which is extended through January 31,
2011. It was noted that the Board had approved such a submission previously in 2008
but Mr. Sugarman subsequently advised the Board to hold off on the submission. Mr.
Herrera stated that the IRS has advised that it is going to turn its attention to the
compliance of public pension plans. He stated that the attorney's fee for the request
would be $8,500 and there is a $1,000 user fee to the IRS for filing the request. There
was a lengthy discussion. A motion was made, seconded and carried 5 -0 to approve for
the filing of a favorable determination letter with a cap of $8,500 for attorney's fees and
$1,000 for the user fee to the IRS.
Joe Bogdahn, Cindy Farrow and David Falconer departed the meeting.
3
Mr. Herrera stated that he would need the Chair to sign certain documents related to the
determination letter filing. A motion was made, seconded and carried 5 -0 to authorize the
Chair to sign any necessary documents for the IRS determination letter.
Mr. Herrera stated that he drafted a proposed Ordinance for the IRC compliance language
and sent it to the Actuary for an impact statement. He stated that he thought it had already
been done but after review of the current Ordinance realized it was not. He noted that the
main language of the proposed Ordinance deals with the 415 limits. He stated that in
order to proceed with the determination letter, the required compliance language needs to
be in the Ordinance. If the language is not in the Ordinance, then going forward with the
determination letter is moot. There was a lengthy discussion. The Board was very
concerned and upset that they needed to go back to City Council for another change when
they just had an Ordinance change before the Council last week. The Board decided to
have a special meeting on October 4th to discuss this further and review the proposed
Ordinance.
Mr. Herrera discussed new health care legislation that was enacted this summer. He
stated that there was no bearing on the Fund but it might be able to save the City some
money. He recommended that the Chairman provide the information to the City Finance
Director.
ADMINISTRATIVE REPORT
The Board was presented with the engagement letter for Steve Gordon to perform the
Audit for the fiscal year ending September 30, 2010. Ms. Wisneski stated that the letter
does have everything she was looking for. Mr. Herrera stated that the letter was legally
sufficient. A motion was made, seconded and carried 5 -0 to approve the engagement
letter for Steve Gordon to perform the Audit for the fiscal year ending September 30,
2010.
Ms. Adcock presented the Board with the benefit calculation and election for Scott
Fetterman. A motion was made, seconded and carried 5 -0 to approve the benefit election.
There was discussion on how the process is working. It was noted that some Participants
still do not understand that they will not have a final calculation for 6 -8 weeks after they
retire or enter the DROP. It was determined that a checklist should be provided advising
of the steps and information needed, which checklist can be provided with the annual
employee benefit statements and put in the summary plan description. A motion was
made, seconded and carried 5 -0 to have the Secretary work with the Administrator to add
a checklist to the summary plan description, website and provide annually with the
employee benefit statements.
Ms. Adcock presented the list of disbursements to be made. The Board questioned an
entry on the Attorney invoice regarding a member going through a divorce. Mr. Herrera
agreed to remove it from the invoice. A motion was made, seconded and carried 5 -0 to
approve the disbursements listed with an adjustment to the attorney invoice to deduct
$171 from the invoice.
Ms. Adcock provided the Board with a copy of the current agreement between the Fund
and her office. She discussed the background of the agreements. The Board decided to
discuss this further at the November meeting. Mr. Murphy stated that he wanted to
4
discuss the online calculator with Mr. Baur. He does not feel it is working properly to
give participants a complete calculation. The Board authorized Mr. Murphy to discuss
the matter with Mr. Baur.
OTHER BUSINESS
The Board reviewed the responses received to the disability review process. There was a
discussion on the responses received. Mr. Herrera discussed the process and noted that
the review process is to confirm they are still disabled. There was a lengthy discussion.
Mr. Rhodes suggested that a form be sent for the doctors to complete so the Board
obtains the information it is seeking. The form would have the job description on the
back for the doctors to refer to. A motion was made, seconded and carried 5 -0 to allow
Mr. Rhodes to draft a form to be used for the disability review process. There was then
discussion on the fact that a proper response was not received from Kevin Mitchell. A
motion was made, seconded and failed 2 -3 to send a letter to Mr. Mitchell advising that a
letter would need to be received by the Board from a doctor by October 15th or his
November pension payment would cease until such time as he complies. Ed. Morejon,
Roy 011iff and Tom Murphy opposed the motion. There was further discussion. Mr.
Herrera revised the Ordinance and Disability Review Policy. He noted that there is a
provision requiring 60 days within which a disability recipient can provide information.
There was a lengthy discussion. A motion was made, seconded and carried 5 -0 to
reconsider the prior motion. There was further discussion. The original motion was
called and carried 5 -0.
Mr. Morejon stated that he would like the minutes of the meetings to be done as soon as
possible after a meeting and provided to everyone so that the service providers and
Trustees know what items need to be followed up on.
There being no further business, the meeting adjourned.
Respectfully submitted,
Tom Murphy, Secretary
PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND
MINUTES OF MEETING HELD
October 41 2010
A special meeting of the Board of Trustees was called to order at 9:06 A.M. at Council
Chambers, Palm Beach Gardens, Florida. Those persons present were:
TRUSTEES
Tom Murphy
Roy 011iff
Ed Morejon
Donna Wisneski
Rick Rhodes
ATTORNEY REPORT
OTHERS
Margie Adcock, Administrator
Pedro Herrera, Attorney
Mr. Herrera discussed the proposed IRS Ordinance. He stated that there are certain
provisions in the IRC that must be included in plans that are seeking a tax -free
qualification. He stated that for the most part the proposed Ordinance deals with the 415
limits. He reviewed the proposed Ordinance. There was discussion on providing
assistance to the City Attorney in understanding the IRS changes, either verbally or by
some sort of tutorial in case he is not completely familiar with these specific provisions
of the IRC. There was a lengthy discussion on the 415 limits. Mr. Herrera stated that he
received the impact statement from the Actuary advising that there is no impact. He
stated that he would need to file for the determination letter with the IRS by January 31,
2011. He stated that he feels comfortable that he can complete the process to file in 4 to 6
weeks. A motion was made, seconded and carried 5 -0 to approve the proposed IRS
Ordinance in order to facilitate the receipt of a determination letter from the IRS and
process to obtain such letter. Mr. Herrera stated that he would provide a copy of the
proposed IRS Ordinance to the City. There was discussion on the presentation to the City.
It was noted that it should be stressed that the IRS Ordinance is not changing any of the
provisions in the Plan but is rather just a compliance Ordinance.
OTHER BUSINESS
Mr. Murphy stated that he was directed at the last meeting to have a discussion with Mr.
Baur on the online calculator and a checklist that could be provided to Participants in the
Plan. Mr. Murphy stated that he did meet with Mr. Baur and they worked out the details
of a checklist. He provided the checklist to the Board for review. The Board reviewed
the document and there were some additional changes noted that should be made. Mr.
Murphy stated that he also talked to Mr. Baur regarding the online calculator. He advised
that in speaking with Mr. Baur, it was determined that the online calculator was set up
based on information from the City which used an hourly rate at 80 hours versus 96
hours. Also, the payroll from the City is base pay and does not include any incentives or
overtime. Mr. Baur talked to the programmer and it was estimated that it would cost
about $200 to make the changes needed to get the calculations closer to a more accurate
number. Mr. Murphy stated that he did have a problem paying the $200 as he thinks it
should have been set up this way from the beginning. The Board agreed that it should
2
not have to pay for the reprogramming of the online calculator. Ms. Adcock noted that
she would advise Mr. Baur of the Board's unwillingness to pay the fee associated with
reprogramming the online calculator.
Ms. Adcock discussed an issue regarding buyback of service in the Fund. She noted that
in 2001 the actuary at the time had prepared a buyback grid that could be used by
participants to determine an approximate cost of buying back service at a 2.75%
multiplier. She advised that she received a call from a prospective employee and inquired
if the Board wanted to ask the current Actuary to update the grid to take into account the
3% multiplier and any other changes associated with the calculation. There was a
lengthy discussion. The Board found no reason to do anything regarding this matter at
this time.
The Board discussed the status of the disability review process regarding Kevin Mitchell.
It was noted that Mr. Mitchell was sent a third letter advising exactly what needed to be
provided. There was discussion on a subsequent voice message left by Mr. Mitchell and
what the Board's response, if any, should be. The Board directed the Administrator to
call Mr. Mitchell and advise that his message was received and the Board is still waiting
for a doctor's letter by October 15th
Ms. Adcock stated that the Intercontinental agreement was finalized and that the account
was funded in full. Mr. Herrera stated that there needed to be an Amendment to the
current agreement with American Realty. He asked for one minor change to the
Amendment and has not yet received that change.
There being no further business, the meeting adjourned.
Respectfully submitted,
Tom Murphy, Secretary
As of September 30, 2010
DANA INVESTMENT ADVISORS, INC.
15800 WEST BLUEMOUND ROAD
SUITE 250
P.O. BOX 1067
BROOKFIELD, WISCONSIN 53008 -1067
www.DANAINVESTMENT.com
Table of Contents
Page
3 Performance & Allocation
4 Economic Market Outlook
18 Holdings as of 9 -30 -10
22 Broker Commission Report
Palm Beach Gardens Firefighters' Retirement System
Investment Objectives:
Achieve a return over 3 -5 years in excess of target index. Rank in top 40% of representative
portfolios 3 -5 years. Volatility of fund's total return is expected to be similar to target index.
* *Comparative Indices adjusted accordingly)
July 2005 to Current: Russell 3000 Index
Inception to June 2005: S &P 500 Index
Investment Restrictions:
No more than 3% of assets in any one issuing company.
Performance
vs Comparables (Gross of Fees)
Total Return
Fiscal Period
EQUITYONLY
4th Quarter 2010* 2010
Average Annual
Since Inception
6 -30 -10 to 9 -30 -10 9 -30 -09 to 9 -30 -10
6 -10 -02 to 9 -30 -10
Palm Beach Gardens Firefighters'
Retirement % 11.22%
3.60%
System Account
Russell 30001ndex **
11.53% 10.96%
3.56%
Firefighters' Large Growth
11.74%
11.18%
Russell 1000 Growth Index
13.00%
12.65%
Firefighters' Small Cap /Lrg Value
10.62%
11.26%
S &P 500 Index
11.29%
10.15%
Fiscal = 9 -3U
x Unannualized
From the market low on March 9, 2009 to October 25, 2010 the account has returned:
❑ Dana Lrg Value
$6,161,907
39.3%
❑ Dana Small Cap
$1,509,475
9.6%
74.61 % or $ 5,540,654
❑ Money Market
$1,424,062
9.1%
❑ Dividends Accrued
$19,474
0.1%
no Lrg Growth
$6,557,913
41.8%
The information set forth above is based upon information believed to be accurate and reliable but we do not quarantee its accu
Q3 2010 - Equity Market Summary
S &P 500 returned 11.3% in Q3; best September ( +8.9 %) since 1939
• Fed signaling no end to easy monetary policy
• Equities are attractively valued vs. fixed income alternatives
• Strikingly bearish sentiment at end of August 2010
A All economic sectors within the S &P 500 posted positive returns in Q3
• Cyclical sectors (Materials, Consumer Discretionary, Industrials) were
among the best performers; high yielding Telecom sector +19.1 %
• Defensive sectors (Health Care, Staples) and Financials lagged
Growth outperformed Value by nearly 300bps during Q3
• Growth has more exposure to the highly cyclical Consumer
Discretionary, Industrials and Energy sectors
Small cap stocks performed in line with large caps during Q3 but maintain
a large lead YTD and over the past year
• M &A activity
• Earnings growth outpacing large caps
Index Returns
S &P 500
NASDAQ
Russell 1000 Growth
Russell 1000 Value
Russell 2000
❑ Q3 ® Year -to -Date ■ Past 12 Months
0% 2% 4% 6% 8% 10% 12% 14%
Source: Bloomber
S &P 500 Index
More expensive stocks led the market in Q3 2010
During the third quarter of 2010, the S &P 500 Index returned +11.3% versus
+13.0% for Large Growth and +10.1 % for Large Value.
More expensive, higher price /earnings stocks generally outperformed.
Stocks with forward P /E's less than 12x underperformed those stocks with
forward P /E's above 24x by an average of 60 %.
➢ Our risk controls and sensitivity to valuation generally keep us away from
stocks with the highest valuations. As a result, we are pleased that our
Large Core portfolios roughly matched the S &P in Q3.
24
21
18
15
0
12
D:
0
F- 9
6
0
S &P 500 Q310 Performance By P/E Decile
4.9 -9.6 9.6 -11.1 11.1 -12.6 12.6 -13.5 13.5 -14.6 15.4 -17.0 17.0 -19.2 17.0 -24 19.2 -24 >24
Forward P/E (by decile)
Least Expensive 4 - Most Expensive
Dana Large Cap Value - Dividend Yield and Growth
Dana's process seeks out companies with strong, sustainable, free cash
flow and management teams that are shareholder friendly
Dana's Large Cap Value composite generated a 2.6% dividend yield as of
9/30/2010
• 30bps higher than the Russell 1000 Value Index and 10bps higher
than 10 -Year US Treasury Notes
Composite holdings grew dividends 8.3% over the past three years,
despite a severe recession and dividend cuts among their peers.
Dividend Yield
3
2.60
2
1
Dana LCV
2.30
Ru 1000V
El
0
51
3 Year Dividend Growth Rate
[.*M
-3.01
Dana LCV Ru1000V
Actual Composite Holdings as of September 30, 2010
Dana Large Cap Growth - Higher Dividend Yield & Growth
2
1
Dana's process seeks out companies with strong, sustainable, free cash
flow and management teams that are shareholder friendly
Composite holdings grew dividends much faster than the Russell 1000
Growth Index average.
• Annualized 3 year dividend growth for Dana holdings was 17.5% per
year vs. roughly 11.3% for the R1 000G
• Annualized dividend growth was 5.8 times the 3% growth rate of S &P
500.
Managements of highly profitable, cash rich companies feeling increasing
pressure to deploy cash to improve shareholder returns
• Share buy -back activity has increased substantially for portfolio
holdings that currently don't pay substantial dividends
Dividend Yield
1.44 1.45
N
Dana LCG Ru1000G
r: 3 Year Dividend Growth Rate
al.
17.54
15
11.33
n
Dana LCG Ru 1000G
Actual Composite Holdings as of September 30, 2010
Dana Small Cap - Higher Dividend Growth
2
1
Dana's process seeks out companies with strong, sustainable, free cash
flow and management teams that are shareholder friendly.
Dana Small Cap portfolios offer a yield advantage of 46 basis points over
the Russell 2000 Index.
Despite a severe recession, Dana Small Cap holdings grew their dividends
8.7% over the past three years, this compares very favorably versus the
0.40% growth rate for the benchmark index.
Dividend Yield
1.65
M
NO
Dana Small Cap
1.19
Russell 2000
10
8
6
4
2
n
3 Year Dividend Growth Rate
8.71
F pr
Dana Small Cap
MIN
Russell 2000
Actual Composite Holdings as of September 30, 2010
Strong Execution - Lubrizol Corp (LZ)
Management teams that are executing well provide confidence in earnings
estimates, with room for upside surprises, while protecting against possible
value traps
LZ management: increasing prices, expanding geographic footprint,
aggressively buying back stock
Shares trade at an attractive 10.6x forward earnings and 6x EV /EBITDA
• Chemicals M &A done in 2010 at 8x - 10x EV /EBITDA
Lubrizol Corp. (LZ)
September 2009 - September 2010 (Weekly)
Or rr�
_r r
Positive EPS Surprise %
E
E I o I
.,o� r I
� � r
Estimated EPS
EPS estimates +60% in past 12
months
110
105
100
95
90
85
80
75
70
65
10.37
NOW
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
OFactSet Research Svstems 2
S &P 500 Companies Benefit From Foreign Revenues
a
I
HA'I,
KGWO
110
Foreign sales accounted for roughly 33% of sales in 2009 vs. 26% in 1995
Sectors that are experiencing the greatest revenue growth in this recovery
also have the highest mix of foreign sales.
Foreign pre -tax margins are higher than domestic margins.
The rising share of foreign sales with higher margins has contributed to
higher overall margins for the S &P 500
S &P 500 profitability in this recession has surpassed the 2001 -2002 time
period.
S &P 500 Foreign Sales By Sector ( %)
z n o 0 5 m t- M Q* Q*
0 =r Q CJq Cr
(!� Si C7 3 8 g
OF
n �D X
Global cyclicals -n
5
Source: Fret Cempanf reports. 50WA. U5 EQjrf Wa*gy
Foreign operations account for
>40% of S &P Earnings
OM&
Developed
Ma*ets
10%
Swrte. 00FAML US Equ¢y Strzegy
Macroeconomic Background
10
8
6
4
2
0
-2
-4
-6
-8
Economic data shows continued expansion, but at slowing rates. 2011
GDP growth is estimated at 2.5 %. This is hardly a doomsday scenario.
• The NBER announced that the recession officially ended in June
2009.
• Estimated average growth rates for this expansion are 1.0% below
the growth rates of the 2000s due to deleveraging.
Corporate balance sheets are in good shape. Consumers are in repair
mode, but data suggests they are in better shape than feared.
The market reacted strongly this summer to weak housing data which
followed the unprecedented housing tax incentives. Currently mortgage
rates are near all time lows.
Europe continues to affect the market's risk appetite.
Investors have poured billions into bond funds despite low yields and
cheap equities.
Political matters are imposing massive uncertainty on the domestic
economy. The probability of "gridlock" is increasing.
GDP
8 (% 1Q Ann) Gross Domestic Product, Bil. Chained 2005 $, SAAR - United States
Recession Periods - United States
'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
1.7,
Source: FactSet Data Systems
Economic Data Supports Recovery
70
60
50
40
30
Source: FactSet Data Systems
ISM Survey
ISM (NAPM) Production, Index - United States
Recession Periods - United States
20—
'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 110
Source: FactSet Data Systems
Consumer Leverage
Household Debt Service Ratio, Percent, Nsa - United States
Recession Periods - United States
14.5 - Trendline, 30 Year Average
14.0 /
H eholds debt service is failing faster than
13.5 a ': ated.
13.0
12.5 j
12.0 12.10___ %yf ____ _ _ _ _ /__ __ _ _______ _ ___ __ __ ___ ______ _ 12.13
11.5 j
11.0 j
10.5
10.0
'81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 195 '96 '97 '98 '99 '00 '01 '02 '03 '04 105 '06 '07
C°� / %aceSei Research Syseems
Source: FactSet Data Systems
Economic Outlook - Historical View Of Employment Recoveries
In
Y
M
2L
L-
0
O.
0
O
N
M
N
O
L
f0
EO.
�0
C
O
Z
The time it has taken to replace the jobs lost in the prior recession has
generally been increasing with each subsequent economic recovery.
— 1953
0.5'0
— 1957 .9 0 —1970 —1974 —1980 —1981
C 2001 —2007
L -6.5
0 5 Iii 17 20 25 30
Months after peak employment —
Sauteslaby fit..[btas w.C3U- W.R6Bbg¢m
35 40 45 4'?
➢ Reasons Include:
Increased globalization
Corporate productivity gains
Advancements in technology & communications
Just -in -time inventory processes
Total cost of each worker is rising
Health insurance, workers comp, payroll taxes, pension & other
benefit costs, rising each decade
Dana Investment Advisors.l
Corporate Cash
Companies are beginning to deploy their cash hoards
➢ Aggressive actions involving dividends, M &A and share buybacks could be
an important market catalysts looking forward
Year- over -year growth in capital expenditure spending has turned positive
Investors are Risk Averse -Mutual Fund Flows & Sentiment
Investors continue to move cash into bond funds
• 2010 (through August) bond fund inflows total $215 billion, but are now
slightly behind the 2009 pace
Equity funds continue to experience net outflows
• U.S. equity funds have realized $43 billion in outflows in 2010 vs. $4.4
billion in net inflows for the same period in 2009
• Foreign equity funds inflows have totaled nearly $15 billion in 2010
Investor sentiment has been extremely volatile (bottom chart), a
consequence of economic, political and general market insecurity
Fund Flows - Equities vs. Bonds
ICI Mutual Funds, Net New Cash Flow, Equity Funds, Billions of USD - United States
ICI Mutual Funds, Net New Cash Flow, Bond & Income Funds, Billions of USD - United States
$50
$40 —
$30 30.59
$20
$10 -
$0
$ -10 —
16.53
$ -20 — —
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
CFactSet Ra—h Systems
Market Sentiment - % of Bulls minus % of Bears
(AAII, Sentiment Survey, Bullish, Percent - AAII, Sentiment Survey, Bearish, Percent- United States) (left)
— S &P 500 - Price Index (Right)
30
20
10
0
-10
-20
-30
-40
-50
1/09 4/09 7109 10109 1/10 4110 7/10
1,200
1,100
1,000
900
B00
700
10/10
®F-SO Ra ,h Systems
Equity Market Valuations are Attractive
S &P 500 forward P/E ratio not far off 10 -year lows while EPS has
rebounded sharply
Equities look attractive against alternatives
• Equity risk premium is above 4 %, reflecting strong Treasury demand
and a distaste for equities
S &P 500 Forward Operating EPS and PE Ratio
1 S &P 500 - NTM Earnings per Share (Left)
$110 — S &P 500 - NTM Price to Earnings Ratio (Right)
$100
$90
$80
$70
$60
$50
101 '02 '03 '04 '05
Source: FactSet
'06 '07
IGIII IIII
2s
24
22
20
18
16
14
12
10
s
'08 109
'10
cFarrSet Resemch Svstems
Source: FactSet
Market Bull and Bear Arguments
Bull Case:
GDP forecasted at 2.5% in 2011, well above most public & media
perceptions
Valuations remain attractive from both historical levels and relative to
investment alternatives
Productivity growth and margin expansion allowing for strong year over
year EPS growth
Top line growth is accelerating.
Record amounts of cash on corporate balance sheets resulting in
shareholder friendly actions (dividends, share repurchases, accretive
M &A)
Global monetary policy remains accommodative
Possible repeat of favorable mid -term election cycle?
Bear Case:
Sovereign debt fears could continue to fuel a flight to quality out of risk
assets
Global economic growth likely to moderate in future quarters, especially in
Europe due to increased fiscal austerity measures.
Business and consumer deleveraging continues to weigh on the economy.
Political uncertainties creating a drag on business capital investment & job
creation
Continued high unemployment impeding U.S. disposable household
income and consumer spending
Credit availability still difficult given tougher loan underwriting criteria
Dana Investment Advisors,
PORTFOLIO HOLDINGS
Portfolio: 715comp - City of Palm Beach Gardens Firefighters'
Retirement System - Comp
Shares/ PAR Identifier Description Price
Inc.
Market Value
Pct. Assets
As of 09 /30/2010
Accruals Cur.
Owed Yield
Cash
.66
.00
1.05
5,207
CAG
Conagra Foods Inc
Short Term Investments
114,241.58
.73
.00
4.19
1,474
DLM
000009
Cash -Money Fund
19,324.14
1,424,062.12
9.10
.00
.01
DPS
Total Short Term Investments
35.52
1,424,062.12
9.10
.00
.01
Stocks
HRL
Hormel Foods Corp
44.60
112,481.20
.72
.00
Domestic Equity Strategy
4,916
NUS
Nu Skin Enterprises Inc
28.80
141,580.80
.90
Consumer Discretionary
1.74
1,876
PEP
Pepsico Inc
66.44
124,641.44
2,133 ALV
Autoliv Inc
65.33
139,348.89
.89
.00
2.14
524 AZO
AutoZone Inc
228.91
119,948.84
.77
.00
.00
1,480 CAB
Cabela's Inc
18.98
28,090.40
.18
.00
.00
3,191 COH
Coach Inc
42.96
137,085.36
.88
478.65
1.40
561 CBRL
Cracker Barrel Old Country Sto
50.76
28,476.36
.18
.00
1.73
1,014 DBRN
Dress Barn
23.75
24,082.50
.15
.00
.00
1,031 DSW
DSW INC
28.70
29,589.70
.19
.00
.00
4,081 JCI
Johnson Controls Inc
30.50
124,470.50
.80
530.53
1.70
908 MFB
Maidenform Brands Inc
28.85
26,195.80
.17
.00
.00
1,521 MCD
McDonald'S Corp
74.51
113,329.71
.72
.00
3.27
3,117 JWN
Nordstrom Inc
37.20
115,952.40
.74
.00
2.15
2,592 PBY
Pep Boys -Manny Moe & Jack
10.58
27,423.36
.18
.00
1.13
2,094 TGT
Target Corp
53.44
111,903.36
.71
.00
1.87
979 TEN
Tenneco Inc
28.97
28,361.63
.18
.00
.00
3,917 TSCO
Tractor Supply Co
39.66
155,348.22
.99
.00
.71
6,715 VIA/B
Viacom Inc -Class B
36.19
243,015.85
1.55
1,007.25
1.66
2,665 WHR
Whirlpool Corp
80.96
215,758.40
1.38
.00
2.12
120,914.30
Total Consumer Discretionary
.00
1,668,381.28
10.66
2,016.43
1.55
Consumer Staples
1,579
CHID
Church & Dwight Cc Inc
64.94
102,540.26
.66
.00
1.05
5,207
CAG
Conagra Foods Inc
21.94
114,241.58
.73
.00
4.19
1,474
DLM
Del Monte Foods Co
13.11
19,324.14
.12
.00
2.75
5,879
DPS
Dr Pepper Snapple Group
35.52
208,822.08
1.33
1,469.75
2.82
2,522
HRL
Hormel Foods Corp
44.60
112,481.20
.72
.00
1.88
4,916
NUS
Nu Skin Enterprises Inc
28.80
141,580.80
.90
.00
1.74
1,876
PEP
Pepsico Inc
66.44
124,641.44
.80
.00
2.89
4,832
PM
Philip Morris International
56.02
270,688.64
1.73
3,092.48
4.57
4,724
WMT
Wal -Mart Stores Inc
53.52
252,828.48
1.62
.00
2.26
Total Consumer Staples
1,347,148.62
8.61
4,562.23
2.86
Energy
1,184
APA
Apache Corp
97.76
115,747.84
.74
.00
.61
793
ATW
Atwood Oceanics Inc
30.45
24,146.85
.15
.00
.00
5,040
CHK
Chesapeake Energy Corp
22.65
114,156.00
.73
378.00
1.32
2,890
CVX
Chevron Corp
81.05
234,234.50
1.50
.00
3.55
1,404
XEC
Cimarex Energy Co.
66.18
92,916.72
.59
.00
.48
2,218
COP
Conocophillips
57.43
127,379.74
.81
.00
3.83
1,711
XOM
Exxon Mobil Corp
61.79
105,722.69
.68
.00
2.85
1,385
GEOI
GeoResources Inc
15.90
22,021.50
.14
.00
.00
2,590
HP
Helmerich & Payne
40.46
104,791.40
.67
.00
.59
556
LUFK
Lufkin Industries
43.90
24,408.40
.16
.00
1.14
3,653
MRO
Marathon Oil Corp
33.10
120,914.30
.77
.00
3.02
2,650
NOV
National Oilwell Varco Inc
44.47
117,845.50
.75
.00
.90
1,162
OXY
Occidental Petroleum Corp
78.30
90,984.60
.58
441.56
1.94
4,793
SE
Spectra Energy Corp
22.55
108,082.15
.69
.00
4.43
Total Energy
1,403,352.19
8.97
819.56
2.21
Dana Investment Advisors,
Inc.
PORTFOLIO HOLDINGS
Portfolio: 715comp -
City of Palm Beach Gardens Firefighters'
As of 09/30/2010
Retirement
System -
Comp
Shares/ PAR
Identifier
Description
Price
Market Value
Pct. Assets
Accruals
Cur.
Owed
Yield
Financials
5,024
AFL
Aflac Inc
51.71
259,791.04
1.66
.00
2.32
2,263
AXP
American Express Co
42.03
95,113.89
.61
.00
1.71
2,592
AMP
Ameriprise Financial Inc
47.33
122,679.36
.78
.00
1.52
1,732
AFSI
Amtrust Financial Services
14.52
25,148.64
.16
121.24
1.93
5,506
NLY
Annaly Capital Management In
17.60
96,905.60
.62
3,744.08
15.45
2,825
AIZ
Assurant Inc
40.70
114,977.50
.73
.00
1.57
9,348
BAC
Bank Of America Corp
13.10
122,482.17
.78
.00
.31
608
OZRK
Bank Of The Ozarks Inc
37.09
22,550.72
.14
.00
1.62
2,688
CB
Chubb Corp
56.99
153,189.12
.98
994.56
2.60
1,084
CBU
Community Bank System Inc
23.01
24,942.84
.16
260.16
4.17
1,044
CTBI
Community Trust Bancorp Inc
27.09
28,281.96
.18
318.42
4.50
1,433
COD[
Compass Diversified Holdings
16.16
23,157.28
.15
.00
8.42
3,210
DLR
Digital Realty Trust
61.70
198,057.00
1.27
.00
3.44
604
EPR
Entertainment Properties Trust
43.18
26,080.72
.17
392.60
6.02
1,282
FFBC
First Financial Bancorp
16.68
21,383.76
.14
128.20
2.40
1,813
FPO
First Potomac Realty Trust
15.00
27,195.00
.17
.00
5.33
1,031
GS
Goldman Sachs Group Inc
144.58
149,061.98
.95
.00
.97
3,682
JPM
JP Morgan Chase
38.06
140,136.92
.90
.00
.53
2,888
MIG
Meadowbrook Insurance Group In
8.97
25,905.36
.17
.00
1.34
4,580
NYX
NYSE Euronext Inc.
28.57
130,850.60
.84
.00
4.20
1,060
OHI
Omega Healthcare Investors Inc
22.45
23,797.00
.15
.00
6.41
2,574
PNNT
PennantPark Investment Corp
10.61
27,310.14
.17
669.24
9.80
2,365
PNC
PNC Financial Services Group [
51.91
122,767.15
.78
.00
.77
6,302
UNM
Unum Group
22.15
139,589.30
.89
.00
1.67
1,357
WAC
Walter Investment Management C
17.49
23,733.93
.15
.00
11.44
5,248
WFC
Wells Fargo & Co
25.12
131,803.52
.84
.00
.80
563
WRLD
World Acceptance Corp
44.16
24,862.08
.16
.00
.00
Total Financials
2,301,754.58
14.70
6,628.50
2.84
Health Care
4,590
ABT
Abbott Laboratories
52.24
239,781.60
1.53
.00
3.37
1,034
AMMD
American Medical Systems Inc
19.58
20,245.72
.13
.00
.00
7,770
ABC
AmerisourceBergen Corp
30.66
238,228.20
1.52
.00
1.04
1,161
CMN
Cantel Medical Corp
16.20
18,808.20
.12
.00
.62
530
CHSI
Catalyst Health Solutions Inc
35.20
18,656.00
.12
.00
.00
1,113
ENSG
Ensign Group
17.95
19,978.35
.13
55.65
1.11
2,455
ERES
eResearch Technology Inc
7.48
18,363.40
.12
.00
.00
1,285
HGR
Hanger Orthopedic Group Inc
14.54
18,683.90
.12
.00
.00
3,913
HSP
Hospira Inc
57.01
223,080.13
1.43
.00
.00
2,467
HUM
Humana Inc
50.24
123,942.08
.79
.00
.00
1,101
BLUD
Immucor Inc
19.83
21,832.83
.14
.00
.00
939
IPXL
Impax Laboratories Inc
19.80
18,592.20
.12
.00
.00
1,969
JNJ
Johnson & Johnson
61.96
121,999.24
.78
.00
3.49
1,800
MHS
Medco Health Solutions Inc
52.06
93,708.00
.60
.00
.00
652
MRX
Medicis Pharmaceutical Corp
29.65
19,331.80
.12
39.12
.81
2,764
MIRK
Merck & Co Inc
36.81
101,742.84
.65
1,050.32
4.13
5,316
MYL
Mylan Laboratories Inc
18.81
99,993.96
.64
.00
.00
2,068
PRGO
Perrigo Co
64.22
132,806.96
.85
.00
.39
559
SIRO
Sirona Dental Systems Inc
36.04
20,146.36
.13
.00
.00
2,350
WPI
Watson Pharmaceuticals
42.31
99,428.50
.64
.00
.00
Total Health Care
1,669,350.27
10.66
1,145.09
1.20
Industrials
1,572
MMM
3M Co
86.71
136,308.12
.87
.00
2.42
Dana Investment Advisors, Inc.
PORTFOLIO HOLDINGS
Portfolio: 715comp - City of Palm Beach Gardens Firefighters'
Retirement System - Comp
As of 09/30/2010
Shares/ PAR Identifier Description Price Market Value Pct. Assets Accruals Cur.
Owed Yield
463
AOS
A.O. Smith
57.89
26,803.07
.17
.00
1.45
428
AAWW
Atlas Air Worldwide Holdings
50.30
21,528.40
.14
.00
.00
1,918
CAT
Caterpillar Inc
78.68
150,908.24
.96
.00
2.24
5,001
DOV
Dover Corporation
52.21
261,102.21
1.67
.00
2.11
971
ENS
EnerSys Inc
24.97
24,245.87
.15
.00
.00
899
NPO
EnPro Industries Inc
31.28
28,120.72
.18
.00
.00
8,842
GE
General Electric Co
16.25
143,682.50
.92
1,061.04
2.95
1,087
INSU
Insituform Technologies Inc (C
24.21
26,316.27
.17
.00
.00
4,017
NOC
Northrop Grumman Corp
60.63
243,550.71
1.56
.00
3.10
1,918
PWER
Power -One Inc
9.09
17,434.62
.11
.00
.00
924
PCP
Precision Castparts Corp
127.35
117,671.40
.75
.00
.09
746
TNB
Thomas and Betts Corp
41.02
30,600.92
.20
.00
.00
367
TGI
Triumph Group Inc
74.59
27,374.53
.17
.00
.21
3,304
UNP
Union Pacific Corp
81.80
270,267.20
1.73
1,090.32
1.61
1,576
UTX
United Technologies Corp
71.23
112,258.48
.72
.00
2.39
702
WTS
Watt Water Technologies Inc
34.05
23,903.10
.15
.00
1.29
OSIS
OSI Systems Inc
36.32
Total Industrials
1,662,076.36
10.62
2,151.36
1.92
Information Technology
3,665
ADBE
Adobe Systems Inc
26.15
95,839.75
.61
.00
.00
737
AAPL
Apple Inc
283.75
209,123.75
1.34
.00
.00
5,585
CSCO
Cisco Systems Inc
21.90
122,311.50
.78
.00
.00
7,520
EMC
EMC Corp
20.31
152,731.20
.98
.00
.00
2,780
ENTR
Entropic Communications Inc
9.60
26,688.00
.17
.00
.00
251
GOOG
Google Inc -CI A
525.79
131,973.29
.84
.00
.00
5,056
HPQ
Hewlett- Packard Cc
42.07
212,705.92
1.36
404.48
.76
6,295
INTC
Intel Corp
19.20
120,864.00
.77
.00
3.28
1,823
IBM
International Business Machine
134.14
244,537.22
1.56
.00
1.94
565
MA
MasterCard Inc (CL A)
224.00
126,560.00
.81
.00
.27
4,371
MCHP
Microchip Technology Inc
31.45
137,467.95
.88
.00
4.36
4,960
MSFT
Microsoft Corp
24.49
121,470.40
.78
.00
2.61
2,628
NEWP
Newport Corp
11.34
29,801.52
.19
.00
.00
1,652
OPNT
OPNET Technologies Inc
18.15
29,983.80
.19
.00
2.20
5,253
ORCL
Oracle Corp
26.85
141,043.05
.90
.00
.74
824
OSIS
OSI Systems Inc
36.32
29,927.68
.19
.00
.00
1,492
PMTC
Parametric Technology Corp
19.54
29,153.68
.19
.00
.00
668
PLXS
Plexus Corp
29.35
19,605.80
.13
.00
.00
8,482
SWKS
Skyworks Solutions Inc
20.67
175,322.94
1.12
.00
.00
2,391
SMSI
Smith Micro Software
9.94
23,766.54
.15
.00
.00
917
SNX
Synnex Corp
28.14
25,804.38
.16
.00
.00
4,167
TDC
Teradata Corp
38.56
160,679.52
1.03
.00
.00
4,420
TXN
Texas Instruments Inc
27.14
119,958.80
.77
.00
1.92
3,651
TQNT
TriQuint Semiconductor Inc
9.60
35,049.60
.22
.00
.00
5,010
XLNX
Xilinx Inc
26.64
133,466.40
.85
.00
2.40
Total Information Technology
2,655,836.69
16.97
404.48
1.02
Materials
1,375
SHLM
A. Schulman Inc
20.15
27,706.25
.18
.00
2.98
1,610
DD
Du Pont (E.I.) De Nemours
44.62
71,838.20
.46
.00
3.68
1,338
FMC
FMC Corp
68.41
91,532.58
.58
167.25
.73
729
FCX
Freeport- Mcmoran Copper
85.39
62,249.31
.40
.00
1.41
933
IPHS
Innophos Holdings Inc
33.10
30,882.30
.20
.00
2.05
1,740
LZ
Lubrizol Corp
105.97
184,387.80
1.18
.00
1.36
1,466
NEM
Newmont Mining Corp
62.81
92,079.46
.59
.00
.96
1,818
SOA
Solutia Inc
16.02
29,124.36
.19
.00
.00
Dana Investment Advisors, Inc.
PORTFOLIO HOLDINGS
Portfolio: 715comp - City of Palm Beach Gardens Firefighters' As of 09 /30/2010
Retirement System - Comp
Shares/ PAR Identifier Description Price Market Value Pct. Assets Accruals Cur.
Owed Yield
589,800.26
3.77
Total Materials
0.00
Telecommunication Services
242,671.00
1.55
8,485
T
AT &T Inc
28.60
919
CNSL
Consolidated Communications Ho
18.67
5,144
VZ
Verizon Communications Inc
32.59
5.98
427,471.69
Total Telecommunication Services
.00
Utilities
6.01
122,783.47
.78
3,389
AEP
American Electric Power Co
36.23
1,128
AVA
Avista Corp
20.88
2,193
DTE
DTE Energy Co.
45.93
4,330
NU
Northeast Utilities
29.57
2,357
OKE
Oneok Inc
45.04
812
UIL
UIL Holdings Corp
2816
.15
350.78
Total Utilities
6.14
504,123.90
3.22
Total Domestic Equity Strategy
4.35
14,229,295.84
Total Stocks
19,473.76
589,800.26
3.77
167.25
0.00
1.53
242,671.00
1.55
.00
Dividends Accrued
5.87
17,157.73
.11
.00
8.30
167,642.96
1.07
.00
5.98
427,471.69
2.73
.00
6.01
122,783.47
.78
.00
4.64
23,552.64
.15
.00
4.79
100,724.49
.64
1,228.08
4.88
128,038.10
.82
.00
3.47
106,159.28
.68
.00
4.09
22,865.92
.15
350.78
6.14
504,123.90
3.22
1,578.86
4.35
14,229,295.84
90.90
19,473.76
2.08
14,229,295.84
90.90
19,473.76
2.08
Total Portfolio
15,653,357.96
Interest Receivable
0.00
Paydown Receivable
0.00
Accruals
.00
Dividends Accrued
19,473.76
Total Portfolio with Accruals & Receivables
15,672,831.72
The market prices shown on these pages represent the last reported sale on the stated report date as to listed securities or the bid price in the case of
over -the- counter quotations. Prices on bonds and some other investments are based on round lot price quotations and are for evaluation purposes only
and may not represent actual market values. Bonds sold on an odd lot basis (less than $> million) may have a dollar price lower than the round lot quote.
Where no regular market exists, prices shown are estimates by sources considered reliable by Dana Investment Advisors. While the prices are obtained
from sources we consider reliable, we cannot guarantee them. Dana Investment Advisors is not a custodian. Clients should be receiving detailed
statements from their custodian at least quarterly. While Dana In vestment Advisors regularly reconciles to custodian information, we encourage clients
to review their custodian statement(s).
Palm Beach Gardens Firefighters' Retirement System
Broker Name Shares Comm Rate Net Amount Commission
Capital Institutional Services 84,660 0.0151 3,009,403.67 $ 1,280.39
Insti net 68,009 0.0148 2,112,158.25 $ 1,003.38
Weeden 4,030 0.0171 93,943.67 $ 68.84
This page intentionally blank
AGREEMENT:
THIS AGREEMENT, made and entered into by and between the BOARD OF TRUSTEES OF
CITY OF PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND hereinafter referred
to as the "Trustees" and THE PENSION RESOURCE CENTER, INC., a Corporation organized
in the State of Florida, hereinafter referred to as the "Administrative Manager ".
WITNESSETH:
WHEREAS, the Trustees are the duly appointed and elected Trustees of CITY OF PALM
BEACH GARDENS FIREFIGHTERS' PENSION FUND, an Employee Benefit Plan, hereinafter
referred to as the "Fund ", maintained and operated in accordance with Chapter 38, Article II,
Division 2 of the Code of Ordinances of the City of Palm Beach Gardens, as well as the
appropriate provisions of Chapter 112 and Chapter 175 of the Florida Statutes, the Internal
Revenue Code of 1986, as amended (the "Code "), and other State Statutes and the rules and
regulations promulgated under these laws; and
WHEREAS, the Trustees are authorized and empowered to engage an Administrative Manager to
assist them in discharging their duties and responsibilities as Trustees and as named fiduciaries of
the Fund; and
WHEREAS, as a result of its investigation, the Trustees have determined that it is in the best
interests of the participants and beneficiaries of the Fund to engage the services of the
Administrative Manager upon the terms and conditions hereinafter more fully set forth.
NOW, THEREFORE, in consideration of these premises, the mutual promises of the parties and
other good and valuable consideration, the receipt and sufficiency of which are hereby mutually
acknowledged, it is hereby covenanted and agreed by and between the parties hereto as follows:
l) The Trustees hereby engage and hire The Pension Resource Center, Inc. who hereby accepts
the engagement and hiring by the Trustees to serve as the Administrative Manager and
pension coordinator of the Fund.
Without limiting the generality of the foregoing, it is mutually acknowledged and agreed that
the Administrative Manager is engaged to perform those duties and responsibilities of the
Trustees as the "Fund Administrator" which are delegated to it in accordance with the express
terms of this agreement.
The Administrative Manager shall not a) exercise any discretionary authority or discretionary
control respecting the management or administration of the Fund, or b) exercise any
independent authority or control with respect to the management or disposition of the assets
of the Fund, or c) render investment advice for a fee or other compensation, direct or indirect,
with respect to any monies or other property of the Fund. Additionally, the Administrative
Manager is not hired for the purpose of providing insurance or financial products to the Fund
or its participants.
2) Thi Agreement shall become effective on 11P2.01,00 and shall continue until
SA � 6 unless terminated prior to that time in accordance with provisions herein.
After. V170 O =- , this Agreement may be reviewed and renegotiated. If this
Agreement is not renegotiated, then this Agreement shall continue in full force and effect
until either party requests negotiation, which may be done at any time.
3) This Agreement may be terminated by the Trustees upon written notice to the Administrative
Manager, and this Agreement may be terminated by the Administrative Manager by giving
the Trustees written notice of the intention to terminate at least sixty (60) days prior to the
effective date of termination.
If actual termination occurs, the Administrative Manager shall promptly turn over to the
successor Administrative Manager or such other party designated by the Trustees all records,
reports and documents belonging to the Trustees and in the possession of the Administrative
Manager. The electronic data processing system of the Administrative Manager and all
specifications, punch cards, magnetic tapes, disc packs, programs, manuals or other
documents and appurtenances hereto are and shall remain the sole, absolute and exclusive
property of the Administrative Manager to the extent not inconsistent with any law or
regulation; provided, however, that all of the data and information referred to in Sections
4(h); 5(c); and 7 are and shall remain the sole, absolute and exclusive property of the
Trustees. Any extraordinary expenses incurred by the Administrative Manager in connection
with this transaction shall be billed directly to the Trustees as an additional expense, provided
that the Administrative Manager has the prior approval of the Trustees.
4) The Administrative Manager shall be responsible for and in charge of all administrative
services required of it by the Trustees for the proper and complete administration of the Fund.
Without limiting the generality of the foregoing, the Administrative Manager shall perform
the following services:
a) Establish a Plan Administration Office known as the "Fund Office" in Palm Beach
County in a building accessible to the public. The Administrative Manager shall provide
and pay the employees necessary so that the office shall be properly staffed to enable the
Administrative Manager to perform its services and fulfill all of its duties and obligations
hereunder. The office shall be open to all interested parties during normal business hours
and at such other times as are mutually agreed upon by the parties.
b) Attend all meetings of the Board of Trustees and maintain a record of proceedings.
c) Properly, adequately and effectively respond to inquiries by participants or their
beneficiaries, by the Trustees, by the Trustees designated service providers or by the City
of Palm Beach Gardens.
d) Develop, establish and control proper procedures for the recording of all contributions
required to be paid to the Fund from participating Employees, from the City of Palm
Beach Gardens, and all such other payments and disbursements consistent with the
provisions of the objectives of the Trustees, including the installation of electronic and
mechanical systems for such purposes.
e) Maintain statistical data for the Trustees, Auditor and Fund Consultant, including vesting
and accrual history and eligibility history of participants when such are needed or
required.
I) Assist in the design and development of communication booklets, brochures and forms,
and arrange for distribution of required materials to participants and beneficiaries of the
Fund.
g) Maintain permanent true and accurate copies of all Fund documents, including the Plan
Document, Insurance Policies, Booklets, Brochures, forms and all other Plan related
2
material, government reports, correspondence, memorandums, Contracts, Minutes and all
other pertinent data and records of the Fund as may be required.
h) If authorized by the Trustees, install and control Benefit Claim payments systems and
supervise their operation insuring prompt and accurate recording of vesting and benefit
accrual based solely on data provided by the City of Palm Beach Gardens, including
credited service and the processing of applications and making of monthly payments to
participants and beneficiaries. The Administrative Manager shall provide all personnel
for the prompt and accurate processing and payment of the claims, including, but not
limited to:
i) Maintenance of Designation of Beneficiary forms;
ii) Maintenance of elections and rejections of forms of benefit payments;
iii) Assist participants in completing and filing of applications for benefits under the
pension plan;
iv) Processing all applications in accordance with the City of Palm Beach Gardens
Firefighters' Pension Fund, as amended;
v) Assist in preparation and filing of necessary government reports and other
documentation required by law;
vi) If required by the Trustees, attend meetings of participating members in the City of
Palm Beach Gardens and adequately explain Benefit Coverage to any participant or
beneficiary or group of participants and beneficiaries;
vii) Provide Summary Plan Descriptions to Plan participants, exclusive of mass mailings;
viii) If required, maintain a Benefit checking account upon which account all Benefit
checks will be issued; however, drafts will be issued only when the necessary funds
have been deposited in the proper bank accounts. The Trustees agree to be liable for,
and to provide funds sufficient to satisfy all Benefits payable to eligible participants
and beneficiaries of the Fund while this Agreement is in force. If the Trustees fail to
provide funds necessary to satisfy liability under the Fund, the Administrative
Manager shall promptly notify the Trustees by written notice, and if not corrected
within thirty (30) days thereafter, this Agreement may be terminated immediately at
the option of The Pension Resource Center, Inc. by giving written notice to the
Trustees;
ix) If required, reconcile the Fund's Benefit checking account each month;
x) Maintain the claim files of all participants and beneficiaries established by The
Pension Resource Center, Inc. and provide for storage of same;
xi) Process for the Trustees' review and determination all claims appeal requests;
xii) Perform such other administrative and related advisory functions and services as may
be requested from time to time by the Trustees. Such requests may be attached hereto
and made a part hereof by appropriate addenda;
W
xiii) Furnish the postage for the mailing of routine correspondence; and
xiv) Install and maintain a website containing information available to the participants
of the Fund.
5) It is mutually covenanted and agreed that all services rendered by the Administrative
Manager to, for, or on behalf of the Trustees shall be subject to and governed by the
following terms and conditions:
a) The Administrative Manager with reasonable dispatch shall render all services.
b) All services rendered by the Administrative Manager shall be adequate and convenient to
the Trustees and the Fund's Participants and Beneficiaries.
c) All information, including records and other data, which may come into the possession of
the Administrative Manager shall be subject to disclosure and production to the extent
required by the Public Records Act, Chapter 119, Florida Statutes, or upon compulsion of
a subpoena issued by a Court of competent jurisdiction.
d) The Administrative Manager shall familiarize itself with the basic documents under
which the Fund is established, and thereafter render any and all services consistent with
or to further the purposes for which said Fund was established and currently operates.
e) In the performance of its obligations hereunder the Administrative Manager shall be
governed by the rules, regulations and policy determination made by the Trustees.
6) The Trustees will turn over to the Administrative Manager true copies of all records, reports,
information and other data pertaining to this Fund. The Administrative Manager shall rely
upon the completeness and accuracy of the records, reports and data delivered to it by the
Fund.
It is further agreed that the Administrative Manager shall make a diligent effort to transfer all
employee and employer related data from the computer system of the Fund to its computer
system(s). The Trustees acknowledge that the Administrative Manager will not be held
responsible for any liabilities incurred by the Fund which may result from the inaccuracy of
any data maintained by the Fund whether transferred to the Administrative Manager via
computer tapes or received in the form of written and/or printed information.
In the course of performing its administrative services hereunder, the Administrative
Manager shall notify the Trustees of any other and further information, records and/or reports
which are necessary to maintain proper records and render proper reports to meet the needs of
participants and beneficiaries and Trustees and maintain compliance with current legal
requirements. Administrative Manager shall assist the Trustees in ascertaining additional
information, and in establishing and maintaining additional records and reports; provided,
however, the liability and obligation of the Administrative Manager in connection herewith
shall be limited to properly maintaining and reporting on the information and records
delivered to it.
4
7) Administrative Manager shall work with and assist the Trustees and their professional
advisors in the preparation of records and reports to be filed with governmental departments
or agencies and/or to be disclosed and distributed to any participant or beneficiary. The
Administrative Manager shall, if directed by the Trustees, be in charge of arrangements for
disclosure and distribution of documents and reports to participants, beneficiaries or others as
directed by the Trustees.
8) In connection with all claims, losses and expenses, including reasonable attorneys fees, which
the Administrative Manager, its shareholders, directors, officers, employees, successors and
assigns incur as a result of its performance of the terms and conditions of this Agreement;
save and excepting only acts which constitute any material breach of duty by the
Administrative Manager arising under the terms of this Agreement or by law, or any dispute
between the parties to this Agreement, the Trustees covenant and agree to pay the first
$2,500.00 towards the defense of any such claim, or towards the losses in connection with
any such claim. The total the Fund can be liable for under this paragraph is $2,500.00.
Should the Fund become involved in any litigation that would demand an extraordinary
commitment of the resources of the Pension Resource Center, such expenses shall be
reimbursed by the Fund as mutually agreed by both parties prior to any resources actually
being provided.
9) The Pension Resource Center, Inc. agrees that it shall be liable to the Trustees for any
damages or losses which the Trustees or the Fund may incur as a result of any negligence or
intentional act(s) or omission(s) of The Pension Resource Center, Inc. or material breach of
this Agreement by The Pension Resource Center, Inc.
10) The Trustees agree to pay to The Pension Resource Center, Inc. for all services described in
this agreement a monthly fee in the sum of Five Hundred Dollars and No Cents ($500.00).
This fee is guaranteed not to increase for two (2) years. The Pension Resource Center, Inc.
shall charge an additional fee of $100.00 per retirement or disability application processed,
and $25.00 per medical records request.
11) If the Trustees elect to have The Pension Resource Center, Inc. pay the Pension Benefits, the
Pension Resource Center shall negotiate a separate agreement to cover the expense associated
with the issue of such payments.
12) The Administrative Manager agrees to obtain and maintain at least a $1,000,000.00 Fidelity
Bond. Attached hereto as Exhibit "A" is a copy of the Administrative Manager's current
Fidelity Bond. The Administrative Manager agrees to immediately notify the Trustees, in
writing, in the event of any change in its Fidelity Bond and to immediately notify the Trustees
if said bond is terminated, canceled or discontinued, in whole or in part. The Administrative
Manager agrees to immediately provide the Trustees with a copy of its annual renewal of its
Fidelity Bond.
13) The Administrative Manager agrees to obtain and maintain at least $1,000,000.00 Errors and
Omissions Liability Policy. Attached hereto as Exhibit "B" is a copy of the Administrative
Manager's current Errors and Omissions Liability Policy. The Administrative Manager agrees
to immediately notify the Trustees, in writing, in the event of any change in its Errors and
Omissions Liability Policy and to immediately notify the Trustees if said Policy is
terminated, canceled or discontinued, in whole or in part. The Administrative Manager agrees
to immediately provide the Trustees with a copy of its annual renewal of its Errors and
Omissions Liability Policy.
W
14) All notices hereunder shall be deemed to have been duly given if mailed by certified or
registered mail, postage prepaid to:
a) The Trustees
The Board of Trustees of CITY OF PALM BEACH GARDENS FIREFIGHTERS'
PENSION FUND
c/o Mr. Ed Morejon, Secretary
10500 North Military Trail
Palm Beach Gardens, FL 33410
Copies of all such notices shall also be sent to Fund Counsel:
Scott R. Christiansen
63 Sarasota Center Boulevard
Suite 107
Sarasota, FL 34240
b) J. Scott Baur, President
The Pension Resource Center, Inc.
5606 PGA Boulevard Suite 113
Palm Beach Gardens, FL 33418
15) This Agreement has been executed in the State of Florida and shall be governed and
construed in accordance with the laws of that jurisdiction.
16) This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and
to their separate and respective successors and assigns; provided, however, this Agreement
cannot be assigned by either party without prior express written approval of the other.
17) This Agreement constitutes the entire understanding and agreement by the parties hereto and
shall not be modified, amended or revoked except by the express written consent of the
parties hereto.
18) In the event any provisions of this Agreement are determined to be invalid or illegal, such
invalidity or illegality shall not affect the remaining provisions of this Agreement as presently
written or subsequently amended, unless the invalidity or illegality prevents the Trustees or
the Administrative Manager from accomplishing the purposes of the Agreement.
19) IT IS UNDERSTOOD AND AGREED by the parties to this Agreement that The Pension
Resource Center, Inc.'s fee does not include:
a) The cost of the Fund's Fidelity Bond; or
b) The cost of audits performed by Certified Public Accounts and other Auditors selected by
the Trustees; or
c) Legal fees for services performed by Attorney(s) selected by the Trustees; or
d) The Cost of the Fund's Fiduciary Liability Insurance; or
e) The Cost of the current software systems used by the Fund; or
f) Printing of Fund Materials, Booklets, Checks or microfilming of Fund records, if
requested by the Trustees; or
g) The providing of any funds whatsoever for the payment of Benefits, expenses, or
premiums which are the liability of the Fund as administered by the Trustees; or
h) The cost for any special or bulk mailings required by law or requested by the Trustees; or
i) Direct expenses incurred as a result of any travel out -of -town as required by the Fund or
the Trustees.
20) Any action under this Agreement shall be brought in Palm Beach County, Florida or the
appropriate Federal Court in Florida.
2l) Section 287.133, Florida Statutes, provides that a person or affiliate who has been placed on
the convicted vendor list following a conviction for a public entity crime may not submit a
bid on a contract to provide any goods or services to a public entity, may not submit a bid on
a contract with a public entity for the construction or repair of a public building or public
work, may not submit bids on leases of real property to a public entity, may not be awarded
or perform work as a contractor, supplier, subcontractor, or consultant under a contract with
any public entity, and may not transact business with any public entity in excess of the
threshold amount provided in Section 287.133, Florida Statutes, for CATEGORY TWO for a
period of 36 months from the date of being placed on the convicted vendor list.
22) This Agreement is executed in two (2) counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed in several
counterparts, each of which shall be deemed an original copy, but all constituting one and the
same document.
DATED AT CITY OF PALM BEACH GARDENS FLORIDA, THIS A4* DAY OF
AU6v *T , 2000.
BO A
BE
F
M
IC
RD OF TRUSTEES OF CITY OF PALM
ACH GARDENS FIREFIGHTERS' PENSION
FUN
�t
(Ch rman)
e cef a9 y)
(Witness)
THE PENSION RESOURCE CENTER, INC.
Y:
(President)
By: 74X
(Witness)
PALM BEACH GAI )ENS FIREFIGHTERS' P[ ISION FUND
ADDENDUM TO
ADMINISTRATIVE MANAGER AGREEMENT
This is an Addendum to the Administrative Manager Agreement by and
between the PALM BEACH GARDENS FIREFIGTHERS' PENSION FUND
( "Fund "), and THE PENSION RESOURCE CENTER, LLC, ( "Administrator "),
dated August 24, 2000.
In consideration of the agreements, covenants and conditions hereinafter
set forth, the Fund and Administrator agree to the following:
Paragraph 10 is hereby amended as follows:
10) The Fund agrees to pay to the Administrator for all services described in
this agreement a monthly fee in the sum of eight hundred dollars ($ 800.00).
The Administrator shall charge an additional fee of one hundred dollars
($100.00) per retirement or disability application processed, and fifty dollars
($50.00) per medical records request. The Administrator shall charge an
additional three hundred and fifty dollars ($350.00) for each additional
meeting over six meetings per year.
All other terms of the Administrative Manager Agreement executed by the
parties on August 24, 2000 remain in full force and effect except as modified
here.
IN WITNESS WHEREOF, the parties hereto have caused this Addendum
to the Agreement to be executed by the Trustees on the dates indicated below to
be effective on this 15' day of August, 2007.
IN WITNESS WHEREOF, the parties who caused this Agreement to be
executed in several counterparts, each of which shall be deemed an original
copy, but all constituting one and the same document.
D TED AT CITY OF PALM BEACH GARDENS, FLORIDA, THIS, DAY OF
'2007.
BOARD OF TRUSTEES FOR THE
PALM BEACH GARDENS
FIREFIGHTEF�S'..PENSION FUND:
_ _
By:
Chai )
THE PENSION RESOURCE
CENTER, LLC:
(Secretary)
l)�
By: By:
.,
(Witness)
(CE
(Witness)
Pr(
M40
The following basic services are included in the proposed fee:
Services Related To Meetings Of Trustees:
♦ Schedule Meetings
♦ Attendance At Public Pension Fund Meetings
Review Of Statements And Documents:
♦ Review All Statements And Documents Received From:
+ Money Managers
Performance Monitors
Attorneys
Actuaries
Accountants
Others
♦ Review Bank Statements
♦ Review Custodial Statements
Public Records Custodian:
♦ Maintain All Plan Records As Records Custodian
♦ Maintain Current Beneficiary Designations
♦ Assure Compliance With The Government In The Sunshine Law
♦ Assure Compliance With The Public Records Act
♦ Provide Access to Plan Records and Information
Basic Communication:
♦ Prepare Fund Correspondence To Providers And Participants
♦ Respond To Inquires By Trustees, Participants, And Service Providers
♦ Advise And Educate Trustees On Various Pension Matters
♦ Act As Liaison For Plan To Florida Division Of Retirement
♦ Internet Access to Basic Plan Information
Benefit Processing:
♦ Process Retirement Benefit Applications
♦ Assist In Processing Benefit Claims And Appeals
1 . r`
ek
Account Reconciliation And Report Preparation:
♦ Reconciliation Of Accounts
♦ Assist Auditor With Completion Of Annual Audit
.-Additional Routine Services:
Authorize Payment Of Plan Expenses Upon Approval
Assist With Coordination Of Service Providers
♦ Prepare And Coordinate Requests For Proposals For Service Providers
Obtain Quotes For Plan Liability Insurance And Fidelity Bond Coverage
Record Keeping.
♦ Maintain Data For Benefit Eligibility Of Participants
Maintain Participant Service, Payroll, and Contribution Data
Preparation Of Schedules For Annual State & Actuarial Reports
♦ Online Benefit Calculation System
In addition to full plan administration, the Pension Resource Center can issue benefit
payments to include the following services:
♦ Maintain Pension Checking Account
♦ Prepare Monthly Financial Statements
♦ Pay Invoices Upon Approval
♦ Issue Benefit Payments (As Required)
¢ Check
Direct Deposit (EFT)
♦ Tax Deposits, 1099s, and IRS Reporting
Administration 'Without Payment of Benefits
Item. - -
" Fee
Full Administrative Services: PB Gardens Firefighters Pension Fund
S1,626.00
Conversion_ Fee (System Programming_Charge, If Applicable)
(Actual Cost)
Additional Meetings (Above 6 per plan year)
5350.00
Set -Up Fee: Per Disability Or Retirement Application _
$100.00
Fee Per Medical Records Request (Disability Application)
$50.00
Rate .Guarantee
2 Year's
r
PALM BEACH GARDENS FIREFIGHTERS' PENSION FUND
DISBURSEMENTS
November 8, 2010
• THE RESOURCE CENTERS, LLC. $ 3,281.16
(Bill for services for October and November 2010)
• REGIONS MORGAN KEEGAN TRUST $ 1,020.61
(Custodial Fees for September 2010)
• SUGARMAN & SUSSKIND $ 11,734.75
(Fees for legal services for September 2010 and all
work in connection with IRS Determination Letter)
• US TREASURY
$
1,000.00
(IRS User Fee for IRS Determination Letter)
• BOGDAHN CONSULTING, LLC.
$
5,625.00
(3`d Quarter 2010 Monitoring Fee)
• RBC GLOBAL ASSET MANAGEMENT
$
4,329.73
(3r' Quarter 2010 Management Fee)
• DAVIS HAMILTON JACKSON & ASSOCIATES
$
3,041.51
(3rd Quarter 2010 Management Fee)
• DANA INVESTMENT ADVISORS INC.
$
25,759.25
(3`d Quarter 2010 Management Fee)
• STEVEN I. GORDON
$
1,095.00
(Progress bill for audit for year ended
September 30, 2010)
• FPPTA
$
600.00
(2011 Membership Dues)
• LOCAL 2928
$
400.00
(FPPTA Registration for Rick Rhodes to attend
FPPTA School in September 2010)
Total Disbursements for Approval
$
57,887.01
(Trustee)
(Trustee)
Resource Centers, LLC
4360 Northlake Blvd., Suite 206
Palm Beach Gardens, FL 33410
Bill To .
Palm Beach Gardens Firefighters'
Pension Fund
Invoice
Date
Invoice #
10/29/2010
10905
Tax ID
Financial Resource Center 87- 0800465
Pension Resource Center 36- 4504183
Resource Centers 87- 0800468
Description
Qty
Rate
Amount
Palm Beach Gardens Firefighters' Pension Monthly Administration
1,625.00
1,625.00
Fee for November 2010
FED -EX Overnight Shipping
31.16
31.16
Total Amount Due
$3,281.16
Mail Payments to:
Resource Centers, LLC at Palm Beach Gardens address OR ACH Payment to:
First Southern Bank
Pension Resource Center
ABA #: 067012895
Account #: 8063659206
If you have any questions concerning this invoice, please contact Bonnie Lindberg at Resource Centers, LLC
Phone 561.459.2959 or email - Bonnie @ResourceCenters.com
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 #
9/30/2010 10866
P.O. Number
Terms
Rep
Ship
Via
F.O.B.
Project
9/30/2010
Quantity
Item Code
Description
Price Each
Amount
Palm Beach Garde...
Palm Beach Gardens Firefighters' Admin Fee for the month of
October 2010
1,625.00
1,625.00
Total $1,625.00
REGIONS MORGAN KEEGAN
Post Office Box 12385
Birmingham, Alabama 35202 -2385
STATEMENT OF TRUSTEES FEES
INVOICE DATE 10/08/2010
ACCOUNT # 3320005077 ACCOUNT NAME: PB GARDENS FIRE
J. SCOTT BAUR
PENSION RESOURCE CENTER
4360 NORTHLAKE BLVD, SUITE 206
PALM BEACH GARDEN FL 33410
MARKET VALUE PERIOD ENDING 09/30/2010
30,618,407.35 0.0000083333 25,515.24 25,515.24
$ 25,515.24
FEE CALCULATION DETAIL 09/01/2010 - 09/30/2010
ITEM AMOUNT
-------------------------- - - - - -- ------ - - - - --
DISCOUNT:
PERIOD ENDING 09/30/2010 24,494.63 -
TOTAL $ 24,494.63-
SUMMARY OF FEE CALCULATION DETAIL
+ + + + + + + + + + + + + + + ++ + + + + + + + + + + + + + + + + + + + + + ++ + + + + + + + + + + + ++ + + + + + + + + + + + ++
ITEM AMOUNT
-------------------------- - - - - -- ------ - - - - --
MARKET VALUE 25,515.24
DISCOUNT 24,494.63 -
TOTAL AMOUNT DUE FOR CURRENT PERIOD $ 1,020.61
FOR FEE CALCULATION PERIOD 09/01/2010 - 09/30/2010
CONSOLIDATED ACCOUNT PRORATION FOR MASTER ACCOUNT M21485 PALM BCH GARDENS
RECEIVED
OCT 181010
ACCOUNT
INVOICE NUMBER 64491
$ 1,020.61
PERCENTAGE
SUMMARY OF ACCOUNT
CHARGE /BILL
+ + + + + + + + + + + + + + + ++
+ + + + + + + + + + + + + + + + + + + + + ++
+ + + + + + + + + + + ++ + + + + + + + + + + + ++
GARDENS DROP
PREVIOUS BALANCE
2,019.06
BILL
PAYMENTS RECEIVED:
2,019.06 -
3320005077
CURRENT FEE:
1,020.61
GARDENS FIRE
BALANCE DUE
$ 1,020.61
BILL
FEE CALCULATION DETAIL
09/01/2010 - 09/30/2010
+ + + + + + + + + + + + + + + ++
+ + + + + + + + + + + + + + + + + + + + + ++
+ + + + + + + + + + + ++ + + + + + + + + + + + ++
DESCRIPTION /
RATE
FEE TOTAL
BASIS
TO
A/C
MARKET VALUE PERIOD ENDING 09/30/2010
30,618,407.35 0.0000083333 25,515.24 25,515.24
$ 25,515.24
FEE CALCULATION DETAIL 09/01/2010 - 09/30/2010
ITEM AMOUNT
-------------------------- - - - - -- ------ - - - - --
DISCOUNT:
PERIOD ENDING 09/30/2010 24,494.63 -
TOTAL $ 24,494.63-
SUMMARY OF FEE CALCULATION DETAIL
+ + + + + + + + + + + + + + + ++ + + + + + + + + + + + + + + + + + + + + + ++ + + + + + + + + + + + ++ + + + + + + + + + + + ++
ITEM AMOUNT
-------------------------- - - - - -- ------ - - - - --
MARKET VALUE 25,515.24
DISCOUNT 24,494.63 -
TOTAL AMOUNT DUE FOR CURRENT PERIOD $ 1,020.61
FOR FEE CALCULATION PERIOD 09/01/2010 - 09/30/2010
CONSOLIDATED ACCOUNT PRORATION FOR MASTER ACCOUNT M21485 PALM BCH GARDENS
RECEIVED
OCT 181010
ACCOUNT
NAME
PERCENTAGE
AMOUNT
CHARGE /BILL
FEE
2850000097
PB
GARDENS DROP
0.79912677%
8.16
BILL
TO
A/C
3320005077
3320005077
PB
GARDENS FIRE
13.82528079%
141.10
BILL
3320010132
PB
GARDENS FREED
3.77110849%
38.49
BILL
TO
A/C
3320005077
3350000088
PB
GARD FIRE EQ
29.54370421%
301.53
BILL
TO
A/C
3320005077
3350000097
PB
GARD FIRE FXD
15.72762432%
160.52
BILL
TO
A/C
3320005077
3350000104
PB
GARD FIRE AGN
14.76010319%
150.64
BILL
TO
A/C
3320005077
3350000113
PB
GAR DANA GRTH
21.57305223%
220.17
BILL
TO
A/C
3320005077
Ak\ REGIONS MORGAN KEEGAN
Post Office Box 12385
Birmingham, Alabama 35202 -2385
STATEMENT OF TRUSTEES FEES
INVOICE DATE 10/08/2010 2
ACCOUNT NAME PERCENTAGE MARKET VALUE
2850000097 PB GARDENS DROP 0.79912677% 244,679.89
3320005077 PB GARDENS FIRE 13.82528079% 4,233,080.79
3320010132 PB GARDENS FREED 3.77110849% 1,154,653.36
3350000088 PB GARD FIRE EQ 29.54370421% 9,045,811.70
3350000097 PB GARD FIRE FXD 15.72762432% 4,815,548.08
3350000104 PB GARD FIRE AGN 14.76010319% 4,519,308.52
3350000113 PB GAR DANA GRTH 21.57305223% 6,605,325.01
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
Noah Scott Warman
Ivelisse Berio LeBeau
*Board Certified Labor
& Employment Lawyer
SUGARMAN & SUSSKIND
PROFESSIONAL ASSOCIATION
ATTORNEYS AT LAW
October 26, 2010
Board of Trustees
City of Palm Beach Gardens Firefighters' Pension Fund
c/o Margaret Adcock, Plan Administrator
The Resource Centers, LLC
4360 Northlake Boulevard
Suite 206
Palm Beach Gardens, FL 33410
For Services Rendered:
IRS DETERMINATION:
For all work in connection with reviewing the Pension
Plan and applicable IRC provisions, regulations and
Revenue procedures; Preparation of Forms 5300,
2848 and 8717 and draft of Notice to Interested
Parties to be posted. Also included in this fee is all
follow up with the IRS during the determination
process, communications with Trustees, IRS and
other providers and any required residual
amendments.
100 Miracle Mile
Suite 300
Coral Gables, Florida 33134
(305) 529 -2801
Broward (954) 327 -2878
Toll Free 1- 800 -329 -2122
Facsimile (305) 447 -8115
AMOUNT DUE: $8,500.00
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
October 6, 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
WR1TI: -OFF:
3,234.75
0.00
3,733.50
3,562.50 -ckil 188428
171.00-
TOTAL AMOUNT DUE: 3,234.75
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
RECEIVED
OCT i 2 2010
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:INVM
In Reference To: Investment Manager
Professional Services
October 06, 2010
Invoice # 70095
Hrs /Rate Amount
9/17/2010 Review and edit Side Letter with Intercontinental.
0.80
228.00
285.001hr
Receipt and review of LLC Agreement with Intercontinental.
0.70
199.50
285.00/hr
9/21/2010 Review and edit Side Letter Agreement with Intercontinental.
0.80
228.00
285.00/hr
9/22/2010 Telephone conference with legal counsel regarding Side Letter terms.
0.60
171.00
Review and edit.
285.00/hr
Receipt and review of Adoption Agreement and Incremental Adoption
0.80
228.00
Agreement with American Realty. Email to legal counsel regarding revisions.
285.00/hr
9/24/2010 Review and edit Subscription documents for Intercontinental.
0.80
228.00
285.00 /hr
For professional services rendered
4.50
$1,282.50
Previous balance
$655.50
Balance due
$1,938.00
Client:Matter PBGF:MEET
I
City of Palm Beach Gardens Firefighters' Pension Fund
In Reference To: Meeting
Professional Services
Page 2
Hrs /Rate Amount
9/20/2010 Attend meeting. Prepare for meeting. Travel. 6.60 1,881.00
285.O0/hr
For professional services rendered 6.60 $1,881.00
Previous balance $1,140.00
Balance due $3,021.00
Client:Matter PBGF:MISC
In Reference To: Miscellaneous
Balance due $114.00
Amount
Previous balance
$171.00
9/30/2010 Write off per Robert A. Sugarman request.
($171.00)
Total payments and adjustments
($171.00)
Balance due
$0.00
Client:Matter PBGF:ORDN
In Reference To: Ordinances
Amount
Previous balance
$114.00
Balance due $114.00
City of Palm Beach Gardens Firefighters' Pension Fund
Client:Matter PBGF:PLAN
In Reference To: Plan
Professional Services
9/14/2010 Telephone conference with chairman on DROP Plan savings
For professional services rendered
Previous balance
Balance due
Client:Matter PBGF:SIPO
In Reference To: Statement of Investment Policy
Previous balance
Balance due
Page 3
Hrs/Rate Amount
0.25 71.25
285.00/hr
0.25 $71.25
$1,482.00
$1,553.25
Amount
$171.00
$171.00
THE
BOGDAHN
GROUP
4901 Vineland Rd Suite 600 Orlando, FL 32811
Palm Beach Gardens Firefighters' Pension
Email: Margie Adcock
Email: Payment Group
Invoice
Date Invoice #
9/17/2010 5577
Description
Amount
Performance Evaluation and Consulting Services
7/1/2010-9/30/2010
5,625.00
Balance Due $53625.00
RBC Global
Asset Management'
Margaret M. Adcock
Invoice Number
14774
The Resource Centers, LLC
Invoice Date:
10/12/2010
4360 Northlake Blvd., Suite 206
Billing Period:
07/01/2010 - 09/302010
Palm Beach Gardens FL 33410
Custodian Account Number:
CF -RSY8
Account Number:
P703000
INVESTMENT MANAGEMENT FEE
For the Arrears Period of 07/01/2010 to 09/30/2010
Account Name:
City of Palm Beach Gardens Firefighters' Pension Trust Fund
Ending Market Value for Account P703000: R E CE I V ED
July 2010: 1,278,417.43 USD
August 2010: 1,895,025.46 USD OCT 2 8 71110
September 2010: 2,730,739.98 USD
Average Market Value 1,968,060.96 USD
Market Value Based Fees
1,968,060.96 n 0.8800% x 90/360 4,329.73
Total Current Period Fees 4,329.73 USD
Total Amount Due Upon Receipt 4,329.73 USD
If you have any questions, please call Portfolio Administration at 612 -376 -7151 or 1 -866- 759 -9083 or send an email to rbcgamusbilling@rbc.com.
[Keep this portion for your financial records]
Invoice Number:
14774
Invoice Date:
10/12/2010
Billing Period:
07/01/2010 - 09/30/2010
Custodian Account Number:
CF -RSY8
Account Number:
P703000
Account Name:
City of Palm Beach Gardens Firefighters' Pension Trust Fund
Wire Instructions:
Bank: US Bank
Pnptnent Mailing Address:
ABA: 091000022
RBC Global Asset Management (U.S.) Inc.
Account: 1 -602- 3318 -3526
PO Box 9195
RBC Wealth Management
Minneapolis, MN 55480 -9934
Reference: Invoice 14774
Amount Due 4,329.73 USD Remittance Amount USD
Alail this portion with pour pgyntem. Thank you for j -our business.
INVOICE# 22268
October 18, 2010
DAVIS HAMILTON JACKSON VA5ssocIATEs,L. P.
CITY OF PALM BEACH GARDENS FIREFIGHTERS' PENSION FUN
(3350000097) palmti
Attn: Margie Adcock
4360 Northlake Boulevard, Suite 206
Palm Beach Gardens, FL 33410
GARCIA HAMILTON & ASSOCIATES
STATEMENT OF MANAGEMENT FEES
5 HOUSTON CENTER
1401 MCKINNEY, SUITE 1600
HOUSTON, TX 77010 -4035
TEL: ( 713) 853 -2322
FAX: ( 713) 853 -2308
D W W W.DHJA.COM
For The Period July 1, 2010 through September 30, 2010
Portfolio Valuation with Accrued Interest as of 09 -30 -10 S 4,866,419.44
4,866,419 @ 0.250% per annum 3,041.51
Quarterly Management Fee $ 3,041.51
TOTAL DUI; AND PAYABLE $ 3,041.51
Win
DANA INVESTMENT ADVISORS, INC.
STATEMENT OF MANAGEMENT FEES
28- Oct -10
Margie Adcock Account: 715ca
Administrator
Pension Resource Centers
4360 Northlake Blvd
Suite 206
Palm Beach Gardens, FL 33410 United States
Billing Period: FROM 07101/2010 TO 09130/2010
Custodian Account 0: 3350000113
Account #: 715ca - City of Palm Beach Gardens Firefighters' Retirement System - LG
Portfolio Value ............................ ............................... $6.611.438
Amount Due, PAYABLE UPON RECEIPT: ...................................... $11,042.16
Please sign & forward as necessary to custodian for payment
Signature Dated
FEE CALCULATION
Amount Based % of Rata Amount Due
Rate Aoolied@ For Assets Under Mananoment on Rate Aoolied Period (Incl. adiustm.1
0.7500% On the first: 3,000,000 22,500.00 5,625.00
0.6000% On the remainder: 3,611,438 21,668.63 5,417.16
Total Fee: 44,168.63 0.25 11,042.16
Please feel free to contact us if you have any questions or would like further information:
(262) 782 -3631
Dana Investment Advisors. Inc.
Attn: Jennifer
P.O. Box 1067
Brookfield. WI 53008 -1087
DANA INVESTMENT ADVISORS, INC.
STATEMENT OF MANAGEMENT FEES
08- Oct -10
Margie Adcock Account: 715ma
Administrator
Pension Resource Centers
4360 Northlake Blvd
Suite 206
Palm Beach Gardens. FL 33410 United States
Billing Period: FROM 07/01/2010 TO 09130/2010
Custodian Account #: 3350000088
Account #: 715ma - City of Palm Beach Gardens Firefighters' Retirement System - SC
Combined (Blend) Portfolio Value .............. ...............................
$9,061,394
For the Accounts: City of Palm Beach Gardens Firefighters' Retirement
System - SC (715ma)
City of Palm Beach Gardens Firefighters' Retirement
System - LV (715mc)
Amount Due, PAYABLE UPON RECEIPT: ......................................
$14,717.09
Please sign & forward as necessary to custodian for payment
Signature Dated
FEE CALCULATION
Amount Based % of Rate Amount
Rate Ap 1p led: For Assets Under Management on Rate Applied Period (Incl.
0.7500% On the first: 3,000,000 22,500.00
Due
adjustm.)
5,625.00
0.6000% On the remainder: 6,061,394 36,368.36
9,092.09
Total Fee: 58,868.36 0.25
14,717.09
Please feel free to contact us if you have any questions or would like further information:
(262) 782 -3631
Dana Investment Advisors, Inc.
Attn: Jennifer
P.O. Box 1067
Brookfield, WI 53008 -1067
Steven I. Gordon
Certified Public Accountant
4600 W. Commercial Blvd., Ste. 5
Tamarac, FL 33319
Phone (954) 485 -5788
Palm Beach Gardens Firefighters Pension
c/o Pension Resources Inc.
4360 N. Lake Blvd., # 206
Palm Beach Gardens, FL 33410
Invoice #: 6625
Date: 10/19/2010
Progress billing in connection with certified audit as of and for the year ended $1,095.00
September 30, 2010
Total Charges: 1,095.00
Prior Balance (Credit) Before this Invoice: 0.00
Total Balance Due: $1,095.00
City of Palm Beach Gardens
Firefighters' Pension Trust Fund
Quarterly Review
3rd Quarter 2010
WWW.BOGDAHNGROUI'.COM
T HE
f BOGDAHN
GROUP
simplifying your inr,esrmeuf ,urd fidrrciai y decisions
3rd Quarter 2010 Market Environment
Page 2
1 H F
BOGDAHN
GROUP
The Market Environment
Major Market Index Performance
Period Ended: September 30, 2010
■ The economic recovery's on -again / off -again gyrations left
investors searching for direction during the third quarter.
Using the S &P 500 as a market proxy, the equity market
managed to rally 7.0% in July after giving up more than 13.0%
in May and June. July's strong performance was followed by
close to a 5.0% pullback in August before managing to close
out the quarter with the strongest September (8.9 %) since
1939. Despite the quarter's extreme moves, equity investors
that managed to "hold on tight" through the market's volatility
were rewarded with strong index performance.
■ The domestic and international equity benchmark returns for
the 3rd quarter of 2010 represented the strongest performance
for any of the indices since the 3rd quarter of 2009. Much like
that period a year ago, investor portfolios that extended
beyond domestic investments were rewarded with stronger
international performance as a result of continued U.S. Dollar
weakness.
■ In contrast to the equity market's whipsaw movement, broad
market fixed income performance was largely smooth. The
Barclays Aggregate index return of 2.5% for the quarter was
the additive result of positive returns in July, August and
September. The fixed income benchmark's solid performance
was largely attributable to the 4.7% return for the corporate
segment of the benchmark. Despite very attractive refinancing
conditions, ongoing structural issues and concerns over
potential political intervention was a hindrance to returns for
mortgage- backed bonds (0.6 %).
■ Although the one -year performance of the various equity and
fixed income benchmarks masks the interim impact of the
uneven global recovery and several event - driven market
swings, a well- designed and stable portfolio structure should
have produced solid results over this period.
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
Russell 2000
Barclays US Agg
Barclays US Govt
Barclays MBS
Barclays Corp IG
3 -Month T -Bill
0.0%
Quarter Performance
2.5%
2.5%
0.6%
4.7%
0.0%
5.0% 10.0%
1 -Year Performance
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
11.3%
11.5%
11.6%
13.3%
11.3%
- 8.0%
3.7%
10.2%
11.0%
10.8%
- 8.2%
7.0%
5.7%
16.7%
16.5%
-118.2%
15.0% 20.0% 25.0%
20.5%
17.5%
13.4%
12.3%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
THE
$QGDAHN
GRouP
The Market Environment
Domestic Equity Style Index Performance
Period Ended: September 30, 2010
■ Growth managed to outpace value by roughly 3% for the
quarter at each capitalization level of the Russell data series.
Whereas investors were faced with a "nowhere" to hide
scenario during the 2nd quarter's market pullback, the 3rd
quarter represented a much broader spectrum of investment
opportunities. In the large cap space, growth -style managers
had the benefit of performance in the heavily- weighted ( >30 %)
information technology sector, which posted a return of 11.9%
vs. 11.6% for the broad Russell 1000 index. This technology
sector advantage was further enhanced by strong
performance in the "growth- favored" industrial (14.0 %) and
consumer discretionary (15.8 %) sectors, which collectively
represented an additional 27% weight of the growth index. In
contrast, value -style performance for the quarter was
hampered by its roughly 27% weight to the financial sector.
This sector's 5.4% return represented the quarter's weakest
result.
■ The advantage of growth over value for the Russell data
series during the 3rd quarter persists in the one -year style
index results. However, the spectrum of performance
between growth and value over the period is more varied,
ranging from a narrow 140 basis points for the Russell
MidCap style benchmarks to 380 basis points for the Russell
1000 series. Much like the breakdown of the 3rd quarter's
style attribution, the advantage of growth over value in the
one -year period is largely the result of the 1,200 basis point
return range between the technology sector return of 11.1%
and the financial sector return of -0.9 %.
Source: Russell Investments
Page 4
3000 Value
3000 Index
3000 Growth
1000 Value
1000 Index
1000 Growth
MidCap Value
MidCap Index
MidCap Growth
2000 Value
2000 Index
2000 Growth
Quarter Performance - Russell Style Series
0.0% 5.0% 10.0% 15.0% 20.0%
3000 Value
3000 Index
3000 Growth
1000 Value
1000 Index
1000 Growth
MidCap Value
MidCap Index
MidCap Growth
2000 Value
2000 Index
2000 Growth
1 -Year Performance - Russell Style Series
0.0% 5.0% 10.0% 15.0% 20.0%
THE
$QGDAHN
GRouP
The Market Environment
GICS Sector Performance & (Quarter -End Sector Weight)
Period Ended: September 30, 2010
■ Large cap stock performance was positive across the various E
Energy (10.6 %)
Global Industry Classification Standard (GICS) sectors for the
quarter. Large cap sector performance was more varied than M
Materials (4.0 %)
last quarter with seven of the ten GICS sectors outperforming I
Industrials (11.0 %)
the broad Russell 1000 index return of 11.6 %. The
performance of the financial (5.4 %), health care (8.7 %) and C
Consumer Disc (11.1 %)
consumer staples (10.9 %) sectors fell short of the broad large C
Consumer Staples (10.2 %)
cap return for the quarter. Although they collectively represent H
Health Care (11.8 %)
less than 10% of the benchmark weight (81 names),
telecommunication services (20.4 %) and industrials (18.1%) F
Financials (15.9 %)
posted the quarter's strongest sector returns in the Russell I
Info Technology (18.5 %)
1000. While there is some variation between the GICS sector
results for large and small cap issues, a very similar T
Telecom Services (3.1 %)
performance story is visible in the Russell 2000 sector returns U
Utilities (3.7 %)
f th r
Russell 1000 1 ■Quarter ❑l -Year
13.0%
5.1%
18.1%
12.8%
14.0%
18.7%
15.8%
24.2%
10.9%
12.8%
8.7%
9.3%
5.4%
-0.9%
11.9%
11.1%
20.4%
19.6%
12.0%
11.7%
or a qua er. -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
Russell 2000 ■Quarter o1 -Year
■ With the exception of the financial sector's return of -0.9% in
the large cap space, each of the ten GICS sectors in both the
Russell 1000 and Russell 2000 indices posted positive
performance over the trailing one -year period. While the one -
year results were very strong in most sectors, some of last
year's volatility is clearly evident in the performance
differentials of 3rd quarter and one -year returns for several
sectors, particularly consumer staples and telecommunication
services.
Source: Thompson Financial
Page 5
Energy (5.5 %)
Materials (5.3 %)
Industrials (15.3 %)
Consumer Disc (13.9 %)
Consumer Staples (3.1 %)
Health Care (13.0 %)
Financials (20.9 %)
Info Technology (18.7 %)
Telecom Services (1.0 %)
Utilities (3.3 %)
15.3%
9.9%
19.9%
21.6%
10.7%
12.4%
11.7%
18.5%
7.4%
16.6%
7.7%
7.2%
6:0 % 8.7%
17.8%
18.5%
10.4%
3.2%
11.5%
18.4%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
f�7THE
$QGDAHN
GRouP
The Market Environment
Top 10 Index Weights & 3rd Quarter Performance for the Russell 1000 & 2000
Period Ended: September 30, 2010
Russell III
Exxon Mobil Corp
Top 1
Symbol
XOM
Weighted Stocks
Weight
2.72%
Return
9.1%
Sector
Energy
Apple Inc
AAPL
2.09%
12.8%
Information Technology
Microsoft Corp
MSFT
1.68%
7.0%
Information Technology
Procter & Gamble Co
PG
1.55%
0.8%
Consumer Staples
General Electric Co
GE
1.47%
13.5%
Industrials
International Business
IBM
1.46%
9.2%
Information Technology
Johnson & Johnson
JNJ
1.45%
5.9%
Health Care
AMT Inc
T
1.39%
20.3%
Telecomm Service
Jpmorgan Chase & Co
JPM
1.37%
4.1%
Financials
Chevron Corp New
Russell III -AMM&MWIL6.,
Priceline Com Inc
CVX
Top 1 Performing
PCLN
1.35%
SOP
0.12%
20.5%
97.3%
Energy
Consumer Discretionary
Mbia Inc
MBI
0.01%
79.1%
Financials
Atmel Corp
ATML
0.02%
65.8%
Information Technology
Cnh Global N V
CNH
0.01%
61.8%
Industrials
Nbty Inc
NTY
0.03%
61.7%
Consumer Staples
Citrix Sys Inc
CTXS
0.09%
61.6%
Information Technology
Informatioa Corp
INFA
0.03%
60.8%
Information Technology
Anadarko Pete Corp
APC
0.22%
58.4%
Energy
Las Vegas Sands Corp
LVS
0.08%
57.4%
Consumer Discretionary
Fossil Inc
Russell III
Tfs Finl Corp
FOSL
Bottom 1
Symbol
TFSL
0.02%
Performing
Weight
0.01%
55.0%
Stocks
Return
- 25.9%
Consumer Discretionary
Sector
Financials
Capitol Fed FIN
CFFN
0.01%
- 24.4%
Financials
Lincare Hldgs Inc
LNCR
0.02%
- 22.3%
Health Care
Fti Consulting Inc
FCN
0.01%
-20.4%
Industrials
Bancorpsouth Inc
BXS
0.01%
-19.5%
Financials
Wilmington Trust Corp
WL
0.01%
- 18.9%
Financials
Comstock Res Inc
CRK
0.01%
- 18.9%
Energy
Aeropostale
ARO
0.02%
- 18.8%
Consumer Discretionary
Beckman Coulter Inc
BEC
0.03%
- 18.8%
Health Care
Vistaprint N V
VPRT
0.01%
- 18.6%
Information Technology
Source: Thompson Financial
Page 6
Russell III
Tibco Software Inc
Top 1
Symbol
TIBX
Weighted Stocks
Weight
0.25%
Return
47.1%
Sector
Information Technology
Salix Pharmaceuticals
SLXP
0.24%
1.8%
Health Care
Riverbed Technology In
RVBD
0.24%
65.0%
Information Technology
Nordson Corp
NDSN
0.23%
31.8%
Industrials
Highwoods Pptys Inc
HIW
0.23%
18.6%
Financials
Henry Jack & Assoc Inc
JKHY
0.22%
7.2%
Information Technology
Mfa Financial Inc
MFA
0.22%
5.8%
Financials
Parametric Technology
PMTC
0.21%
24.7%
Information Technology
Omega Healthcare Invs
OHI
0.21%
14.5%
Financials
Verifone Sys Inc
Russell III
3Par Inc
PAY
Top 1 Performing
Symbol
PAR
0.21%
Stocks
t
0.08%
64.1%
Return
254.2%
Information Technology
Sector
Information Technology
Virnetx Holding Corp
VHC
0.03%
148.0%
Information Technology
Keithley Instrs Inc
KEI
0.01%
144.4%
Information Technology
Zymogenetics Inc
ZGEN
0.03%
131.0%
Health Care
Unica Corp
UNCA
0.03%
119.0%
Information Technology
Travelzoo Inc
TZOO
0.01%
108.1%
Information Technology
Allis Chalmers Energy
ALY
0.01%
102.4%
Energy
Netezza Corp
NZ
0.09%
97.0%
Information Technology
Sycamore Networks Inc
SCMR
0.05%
1 95.0%
1 Information Technology
Aresight Inc
Russell III
Lecg Corp
ARST
Bottom 1
Symbol
XPRT
0.08%
Performing
Weight
0.00%
94.6%
Stocks
Return
- 57.7%
Information Technology
Sector
Industrials
Alphatec Holdings Inc
ATEC
0.02%
-54.1%
Health Care
Amag Pharmaceuticals I
AMAG
0.06%
- 49.9%
Health Care
Dynavox Inc
DVOX
0.01%
- 49.3%
Health Care
Arena Pharmaceuticals
ARNA
0.06%
-48.9%
Health Care
Aspenbio Pharma Inc
APPY
0.00%
-48.0%
Health Care
First Bancorp P R
FBP
0.00%
-47.2%
Financials
Green Bankshares Inc
GRNB
0.01%
-46.8%
Financials
Network Engines Inc
NENG
0.01%
- 46.1%
Information Technology
Amedisys Inc
AM ED
0.08%
- 45.9%
Health Care
BOGDAHN
GROUP
The Market Environment
International and Regional Market Index Performance (# Countries)
Period Ended: September 30, 2010
• After suffering relative to domestic markets in the 2nd quarter's
AC World x US (44)
"flight to safety ", the U.S. Dollar (USD) performance for each
of the broad international indices shown in the chart
WORLD x US (23)
(ACWxUS, EAFE & EM) outpaced domestic equity results for
EAFE (22)
the 3rd quarter. In fact, in a complete reversal of last quarter's
EAFE (22)
results where the best country return was Singapore's 0.0 %,
Europe (16)
43 of the 44 countries in the MSCI - ACWxUS index posted
positive results. Ireland (- 3.4 %), whose market had to digest
Pacific (5)
multiple credit agency downgrades during the quarter, was the
Emerging Mkt (21)
only country to post a negative return for the quarter in USD.
one -year performance of several of the countries that have
EM Europe (5)
• Investors that are only focused on the USD return of their
EM Asia (8)
foreign portfolios would be missing one of the biggest
contributors to the quarter's performance: "the currency
EM Latin Amer (5)
11
Quarter Performance
1 8.6%
7.4%
7.2%
9.1'
3.7%
effect . The return differential between USD and local 0.0% 5.0% 10.0%
currency returns for the broad international indices was
seismic in nature. In simple terms, every un- hedged dollar
invested overseas for the quarter returned close to 10% 1 -Year Performance
through USD depreciation before investing in a single
AC World x US (44)
company.
WORLD x US (23)
■ Over the one -year period, the 20.5% return of emerging
EAFE (22)
markets continues to represent the strongest trailing broad
equity market performance. In contrast, the developed market
Europe (16)
returns for the one -year period were muted in both USD and
local currency terms. Developed market performance for the
Pacific (5)
trailing one -year period was clearly weighed down by credit
Emerging Mkt (21)
concerns in Europe. This concern is visibly reflected in the
one -year performance of several of the countries that have
EM Europe (5)
been in the news such as Greece (- 52.3 %), Ireland (- 24.8 %),
EM Asia (8)
Italy (- 14.3 %), Spain (- 12.5%), and Portugal (- 9.5 %).
EM Latin Amer (5)
Source: MSCI Capital Markets
Page 7
-2.4%
-5.0%
■USD ❑Local Currency
16.7%
16.2%
16.5%
19.4%
11.6%
18.2%
12.9%
20.1%
13.2%
16.0 %
12.3%
21.0%
14.1%
15.0% 20.0% 25.0%
■USD ❑Local Currency
8.0%
6.2%
N 4.6%
3.5%
3.7%
3.0%
3.2%
1 6.4%
5.0%
20.5%
16.0%
�7.9%
19.2%
_ 19.1%
15.2%
15.0%
21.9%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
f�7THE
$QGDAHN
GRouP
The Market Environment
U.S. Dollar International Index Attribution & Country Detail
Period Ended: September 30, 2010
IVISCI-EAFE
Energy
Ending Weight
7.4%
3rd Qtr Return
22.4%
I-Year Return
-2.0%
Materials
10.4%
19.3%
13.3%
Industrials
12.2%
15.9%
10.8%
Consumer Discretionary
10.4%
18.7%
13.3%
Consumer Staples
10.4%
14.6%
17.4%
Health Care
8.5%
11.2%
4.7%
Financials
24.8%
17.8%
-7.1%
Information Technology
4.8%
8.6%
1.0%
Telecommunication Services
5.8%
20.3%
6.1%
Utilities
5.2%
11.3%
-6.8%
Total
100.0%
16.7%
8.0%
Energy
10.4%
. Qtr Return
16.8%
I-Year Return
2.3%
Materials
12.2%
20.3%
18.7%
Industrials
10.5%
17.4%
13.7%
Consumer Discretionary
9.1%
19.6%
17.6%
Consumer Staples
9.0%
15.8%
21.4%
Health Care
6.1%
11.4%
6.9%
Financials
25.7%
17.5%
-0.4%
Information Technology
6.4%
10.7%
5.0%
Telecommunication Services
6.1%
18.0%
9.7%
Utilities
4.5%
11.2%
-3.1%
Total
100.0%
16.7%
8.0%
Source: MSCI Capital Markets, & Franklin /Templeton
Page 8
Country
United Kingdom
IVISCI-EAFE
Ending Weight
21.5%
MSCI-ACWIxUS
Ending Weight
14.8%
3rd Quarter
Return
19.8%
1-Year
AL Return .1
9.7%
Japan
21.1%
14.5%
5.9%
0.2%
France
10.1%
0.8%
20.9%
-2.9%
Australia
8.6%
5.9%
23.7%
9.6%
Germany
8.0%
7.0%
16.7%
2.0%
Switzerland
7.8%
5.4%
13.3%
9.0%
Spain
3.8%
2.6%
27.7%
- 12.5%
Sweden
3.2%
2.2%
24.7%
30.1%
Italy
2.9%
2.0%
20.0%
- 14.3%
Hong Kong
2.7%
0.2%
21.9%
21.8%
Netherlands
2.6%
1.8%
16.4%
4.1%
Singapore
1.7%
1.2%
15.8%
25.6%
Finland
1.1%
0.1%
26.5%
1.7%
Denmark
1.0%
0.7%
17.7%
19.0%
Belgium
1.0%
0.7%
19.6%
5.6%
Israel
0.8%
0.6%
11.6%
14.4%
Norway
0.8%
0.6%
29.4%
14.9%
Austria
0.3%
0.2%
28.4%
- 10.6%
Greece
0.3%
5.5%
18.9%
- 52.3%
Portugal
0.3%
0.2%
20.6%
-9.5%
Ireland
0.2%
0.2%
-3.4%
- 24.8%
New Zealand
Total EAFE Countries
0.1%
100.0%
0.1%
67.0%
13.6%
-1.9%
Canada
Total Developed Countries
1
7.6%
74.6%
13.4%
16.2%
13.5%
4.6% M
China
4.3%
10.7%
14.1%
Brazil
3.9%
21.8%
16.6%
Korea
3.2%
17.2%
15.3%
Taiwan
2.5%
19.9%
13.0%
India
1.9%
15.4%
27.4%
Hong Kong
1.8%
21.9%
21.8%
South Africa
1.8%
25.4%
29.7%
Russia
1.4%
13.4%
13.2%
Mexico
1.0%
11.5%
24.3%
Malaysia
0.7%
18.9%
38.6%
Indonesia
0.6%
17.9%
42.6%
Turkey
0.4%
31.9%
43.7%
Chile
0.4%
32.6%
57.9%
Thailand
0.4%
32.5%
49.2%
Poland
0.4%
35.6%
25.1%
Colombia
0.2%
32.3%
49.6%
Peru
0.2%
24.9%
32.0%
Philippines
0.1%
29.6%
54.2%
Hungary
I
1 0.1%
27.0%
3.3%
Czech Republic
0.1%
17.4%
-5.2%
Morocco
Total Emerging Countries
Total ACWIxUS Countries
0.0%
25.4%
100.0%
8.3%
18'7���
3.1%
THE
BOGDAHN
GROUP
The Market Environment
Domestic Credit Sector & Broad Market Maturity Performance
Period Ended: September 30, 2010
■ Using the Barclays Aggregate index as a proxy for the broad
fixed income market, bonds provided investors with a solid
2.5% return for the quarter. However, individual fixed income
portfolio results have the potential for significant variation
based on their specific bond segment concentration. Keeping
duration relative to the benchmark at a neutral level, portfolios
that were over - weighted to corporate issues during the 3rd
quarter had the greatest potential to provide outperformance
relative to the broad market index. In contrast, a portfolio that
was focused in the mortgage (0.7 %) segment of the market
would have had a difficult time adding value relative to the
same benchmark.
■ The trailing one -year returns for the various broad and sector -
based bond indices were very strong but likely unrepeatable
in the forward- looking year given the extremely low level of
interest rates. The one -year performance of the broad index
benchmarks clearly show the impact of duration as the term to
maturity increases. While yields in the 3 -7 year range (81-
104 basis point reduction) fell more than yields in the 10 -30
year range (34 -78 basis point reduction), the magnifying effect
on the total return is larger for the longer -dated indices. In
addition to the general reduction in the yield curve over the
last year, prospects of increasing corporate strength clearly
had a positive impact on the various credit sector indices.
Whether it was a reach for additional yield or an overall
increase in investors' appetite for risk, the return premium
earned increased as quality decreased.
Source: Merrill Lynch Index System
Page 9
AAA
AA
A
BBB
<BBB
Govt
Mort
1 -3yr G /M /C
1 -5yr G /M /C
1 -10yr G /M /C
10 +yr G /M /C
Quarter Performance
3.3%
4.0%
4.8%
5.4%
6.7%
2.6%
. 0.7%
G /M /C = Broad Market (Government + Mortgage + Corporate)
- 0.7%
1.2%
2.1%
5.9%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%
AAA
AA
A
BBB
<BBB
Govt
Mort
1 -3yr G /M /C
1 -5yr G /M /C
1 -10yr G /M /C
10 +yrG /M /C
1 -Year Performance
9.6%
10.0%
12.0%
14.7%
7.0% 18.5%
L54 %
4.
7.2 %
14.0%
0.0% 5.0% 10.0% 15.0% 20.0%
THE
$QGDAHN
GRouP
The Market Environment
Market Rate & Yield Curve Comparison
Period Ended: September 30, 2010
■ The Fed kept its target for the fed funds rate steady at 0.0% to
0.25% during the quarter, which marked the 21St month of its
current policy. Although there was no substantial change in
the language of Fed's statement regarding their target rate,
there was a rather significant announcement regarding the
various securities held on their balance sheet. The Fed
indicated that it would maintain the current level of $1.8 trillion
in securities purchased during its quantitative easing program
by reinvesting the principal payments from its agency and
MBS securities holdings into longer -dated Treasuries. The
unchanged fed funds rate target combined with the
reinvestment announcement led investors to surmise that the
current rate environment is likely to persist for the immediate
future. While credit spreads remained relatively steady during
the quarter, the continued decline of 10yr Treasury and TIPS
yields is clearly visible. The TED spread, a general indication
of credit risk in the global economy, also recorded a sizable
reduction during the quarter as Europe's ongoing sovereign
support efforts eased investor worries.
■ The yield curve continued to drift downward throughout the
quarter and maintained its significant steepness. The largest
yield reductions were realized in the 5 to 7 year range where
rates fell just over 50 basis points during the quarter. Short -
term rates remained extremely low with the 2 -year rate
reaching an all time low of 0.37% during the quarter. The 10-
year Treasury bond closed the quarter with a yield of 2.53 %,
which was down 44 basis points from the 2.97% yield on
6/30/10 and 132 basis points from the 3.85% yield on
12/31/09.
Source: Mortgage -X.com , US Department of Treasury & St. Louis Fed
Page 10
1 -Year Trailing Market Rates
5.50
5.00 Fed Funds Rate TED Spread 3 -Month Libor
4.50 BAA/10yr Spread 10yr Treasury 10yr TIPS
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
Sep -09 Dec -09 Mar -10 Jun -10 Sep -10
5.50
5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
Treasury Yield Curve
0 9/30/2009 ,--12/31/2009 —<,-6/30/2010 �-- 9/30/2010
1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
THE
BOGDAHN
GROUP
O
O
0
1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
THE
BOGDAHN
GROUP
The Market Environment
"Shock & Awe" - Bond Price Change Implications by Maturity for Rising & Falling Interest Rates
Period Ended: September 30, 2010
■ The chart to the right illustrates what the potential "price -
shock" would be from an immediate 1% parallel shift in
interest rates on a Treasury bond at each maturity on the yield
curve. To create this example, we used the Treasury yield
curve as of 9/30/10 and assumed that each bond would be
issued at par with a semi - annual coupon payment based on
its respective yield. Each bond's price change was then
calculated based on its duration (price sensitivity) and
convexity (curvature of price /yield relationship). While the
bond's duration has the largest impact on the resulting price
change, a non - callable bond's positive convexity is why bond
prices rise more for a rate decrease than they fall for an
equivalent rate increase.
■ While the price impact on bonds for a shift in interest rates is
unavoidable, the total return implications are more complex.
The chart below illustrates that the actual "total return" impact
on the Barclays Aggregate Bond index (diversified portfolio
proxy) during a period of rising interest rates is not as ominous
as the "price change" chart implies. The total return impact on
a diversified portfolio during periods of rising interest rates is
mitigated by a number of factors including:
$1,250 Bond Price $
$1,200
$1,150
$1,100
$1,050
1.92%
Original
0.27/0
0 -84%
$1,019
Price
$1,003
$990
$1,008
®
■
$1,000
$950
-0.99%
$980
-1.96%
$971
-2.92%
$900
$850
$800
6.77%
4.96% $1,068
$1,050 -
Change in Price
25%
20.50%
$1,205
20%
15.84%
$1,158
15%
9.24%
$1,092 10%
5%
0%
-5%
$953
-4.70% $937
-6.29% $916 -10%
-8.36%
$868 -15%
- 13.23%
$840
16.02% 0
-20 /o
1 -Year 2 -Year 3 -Year 5 -Year 7 -Year 10 -Year 20 -Year 30 -Year
Yield Curve
9/30/10
✓ Holding Period: The impact of bond price sensitivity on total return diminishes as the holding period increases.
✓ Reinvestment: As interest rates rise both coupons and bond proceeds can be reinvested at higher rates.
✓ Roll Down: The aging effect of bonds "rolling down" a positively sloped yield curve will provide an offset to rising interest rates.
✓ Yield Spreads: Bond spreads between Treasury & non - Treasury issues tend to narrow during rising interest rate environments, which will
reduce the impact of the rate change on the prices of non - Treasury holdings.
✓ Yield Curve: Periods of rising interest rates are typically associated with a flattening yield curve (short rates rising more than long rates).
As a result, the largest rate change will typically be concentrated on a portfolio's shorter- maturity bonds.
✓ Diversification: While an individual bond's price change will largely be determined by its duration, a diversified portfolio's duration represents
the weighted- average duration of individual bonds that make up the portfolio. As a result, any portfolio price impact will represent the
combined impact of the various bond durations and corresponding mitigating factors.
Source: US Department of Treasury & St. Louis Fed
Page I1
<7
THE
$QGDAHN
GRouP
Page 12
The Market Environment
Historical Total Return Impact of Interest Rate Changes on Aggregate Bond Index Performance
Period Ended: September 30, 2010
Rate %
Growth of $100
12.00%
18 9 16
13
12 25 Duration (Months)
1,100
11.00%
3.00% A 1.44% 3.19%
6.49% (2.88 %) 7.73%
3.00%
0.01%
1.75% 4.25% Fed Rate Increase °%
1.21% 3.09% Barclays Aggregate Retur
1,000
10.00%
9.00%
Rising Rate
Environment
900
8.00%
800
7.00%
6.00%
700
5.00%
600
4.00%
500
3.00%
2.00%
P 1
400
1.00%
n
"
�
�
300
0.00°
_
I
I'
'
m
' l
�
I
pr
- 1.00%
l
200
- 2.00%
100
- 3.00%
- 4.00%
*annualized for periods > 12 months
^eery �oee �oea ^Dee ^Dee woe^ ^Dee ^0ea ^000 moo^ �oory
^000 ^000 ^ooh ^000 X00^ ^Doe
^000 000 00. Doti o0e 000 ooh Doe 00� 00e 000 0,�0
® Barclays Aggregate Monthly Performance
Target Fed Funds Rate
Barclays Aggregate Growth of $100 (Y2 -Axis)
Target Fed Funds Rate
represents lower -band
series from 1/2009.
THE
Source:
Zephyr, US Department of Treasury & St. Louis Fed
$OGDAHN
GROUP
The Market Environment
The Recession is Over: US Business Cycle Expansions and Contractions
Period Ended: September 30, 2010
DATES BUSINESS CYCLE REFERENCE
Peak Trough
Quarterly dates are in parenthesis
December 1854 (IV)
Contraction
Peak to Trough
--
Expansion
Previous Trough
to this Peak
--
Cycle
Trough from Peak from
Previous Trough Previous Peak
-- --
June 1857(11)
December 1858 (IV)
18
30
48
--
October 1860(111)
June 1861 (111)
8
22
30
40
April 1865(1)
December 1867 (1)
32
46
78
54
June 1869(11)
December 1870 (IV)
18
18
36
50
October 1873(111)
March 1879 (1)
65
34
99
52
March 1882(1)
May 1885 (11)
38
36
74
101
March 1887(11)
April 1888 (1)
13
22
35
60
July 1890(111)
May 1891 (II)
10
27
37
40
January 1893(1)
June 1894 (11)
17
20
37
30
December 1895(IV)
June 1897 (11)
18
18
36
35
June 1899(111)
December 1900 (IV)
18
24
42
42
September 1902(IV)
August 1904 (III)
23
21
44
39
May 1907(11)
June 1908 (11)
13
33
46
56
January 1910(1)
January 1912 (IV)
24
19
43
32
January 1913(1)
December 1914 (IV)
23
12
35
36
August 1918(111)
March 1919 (1)
7
44
51
67
Source: NBER
Page 13
DATES BUSINESS CYCLE REFERENCE
Peak Trough
Quarterly dates are in parenthesis
January 1920(1) July 1921 (111)
Contraction
Peak to Trough
18
Expansion
Previous Trough
to this Peak
10
Cycle
Trough from
Previous Trough
28
Peak from
Previous Peak
17
May 1923(11)
July 1924 (111)
14
22
36
40
October 1926(111)
November 1927 (IV)
13
27
40
41
August 1929(111)
March 1933 (1)
43
21
64
34
May 1937(11)
June 1938 (11)
13
50
63
93
February 1945(1)
October 1945 (IV)
8
80
88
93
November 1948(IV)
October 1949 (IV)
11
37
48
45
July 1953(11)
May 1954 (11)
10
45
55
56
August 1957(111)
April 1958 (11)
8
39
47
49
April 1960(11)
February 1961 (1)
10
24
34
32
December 1969(IV)
November 1970 (IV)
11
106
117
116
November 1973(IV)
March 1975 (1)
16
36
52
47
January 1980(1)
July 1980 (III)
6
58
64
74
July 1981(111)
November 1982 (IV)
16
12
28
18
July 1990(111)
March 1991 (1)
8
92
100
108
March 2001 (1)
November 2001 (IV)
8
120
128
128
December 2007 (IV)
Jun 2009 (II)
18
73
91
81
AVERAGE, ALL CYCLES
1854 -2009 (33 cycles)
16
42
56
55*
1854 -1919 (16 cycles)
22
27
48
49 **
1919 -1945 (6 cycles)
18
35
53
53
1945 -2009 (11 cycles)
11
59
73
66
* 32 cycles, * *15 cycles
THE
BOGDAHN
Gn"UP
The Market Environment
US Business Cycle Facts
Period Ended: September 30, 2010
■ The Length: At 18 months, the recession that just ended represented the longest since the great depression.
■ The Damage: From peak to trough, real GDP declined at an annualized rate of 2.8% and unemployment increased by 4.1%, which
resulted in a net loss of 7 million jobs.
■ The Reality: The NBER's announcement of the end of the downturn in June of 2009 is not a conclusion that economic conditions
have been favorable since that time or that the economy is now operating at normal capacity. The trough simply marks the end of the
declining phase and the start of the rising phase.
■ The Definition: While the "rule of thumb" is that a recession is defined as two consecutive quarters of negative GDP, the National
Bureau of Economic Research (NBER) uses a broader definition of a recessionary period. The NBER defines a recession as "a
period of falling economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real
income, employment, industrial production, and wholesale - retail sales ".
■ Double -Dip ?: Growth has clearly not returned to pre- crisis levels and several economic indicators such as unemployment might likely
go higher before recovering. However, by the NBER's definition, should there be a further downturn in economic activity from here
resulting in a newly defined recessionary period, that downturn would be considered a new recession by the NBER, not a double -dip.
THE
E
SOGDAHN
Page 14 GROUP
Total Fund Portfolio
September 30, 2010
June 30, 2010 : $29,809,720
September 30, 2010 : $34,332,303
Segments
Market Value
Allocation
Segments
Market Value
Allocation
■ Domestic Equity
12,778,859
42.9
■ Domestic Equity
14,229,296
41.4
■ International Equity
2,280,376
7.6
■ International Equity
5,223,393
15.2
■ Domestic Fixed Income
8,971,066
30.1
11 Domestic Fixed Income
9,167,591
26.7
■ Real Estate
737,577
2.5
■ Real Estate
2,269,435
6.6
■ Cash Equivalent
5,041,840
16.9
0 Cash Equivalent
3,442,588
10.0
1~Hk,
BOGDAHN
Page 15 GROUP
Total Fund Portfolio
September 30, 2010
June 30, 2010 : $29,809,720
September 30, 2010 : $34,332,303
Page 16
BOGDAHN
GROUP
Market Value
Allocation
Market Value
Allocation
($)
( %)
($)
( %)
■ Dana Equity Portfolio
9,061,423
26.4
■ Dana Equity Portfolio
7,139,520
24.0
■ Dana Growth (Equity)
6,611,446
19.3
■ Dana Growth (Equity)
5,797,651
19.4
■ Garcia, Hamilton & Assoc. Fixed
4,866,678
14.2
■ Garcia, Hamilton & Assoc. Fixed
4,721,337
15.8
■ Agincourt Capital Management
4,558,392
13.3
■ Agincourt Capital Management
4,431,617
14.9
■ RBC International Portfolio
2,730,880
8.0
■ Receipt & Disbursement
4,021,016
13.5
❑ Manning & Napier Overseas (EXOSX)
2,492,653
7.3
❑ RBC International Portfolio
1,835,139
6.2
❑ Receipt & Disbursement
1,741,395
5.1
❑ Manning & Napier Overseas (EXOSX)
1,125,863
3.8
■ Intercontinental Real Estate
1,500,000
4.4
■ American Core Realty Fund
737,577
2.5
■ American Core Realty Fund
769,435
2.2
Page 16
BOGDAHN
GROUP
Total Domestic Equity (Composite)
Dana Core Equity Portfolio
Dana Growth (Equity)
International Equity (Composite)
RBC International Portfolio
Manning & Napier Overseas (EXOSX)
Total Fixed Income (Composite)
Agincourt Capital Management Fixed
Garcia, Hamilton & Assoc. Fixed
Real Estate
American Core Realty Fund
Intercontinental Real Estate
Receipt & Disbursement
Total Fund Portfolio
Page 17
Palm Beach Gardens Firefighters'
Asset Allocation
As of September 30, 2010
15,672,869
45.65
9,061,423
26.39
6,611,446
19.26
5,223,533
15.21
2,730,880
7.95
2,492,653
7.26
9,425,070
27.45
4,558,392
13.28
4,866,678
14.18
769,435 2.24
1,500,000 4.37
1,741,395 5.07
4.332.303 100.00
12,937,171
43.40
7,139,520
23.95
5,797,651
19.45
2,961,002
9.93
1,835,139
6.16
1,125,863
3.78
9,152,954
30.70
4,431,617
14.87
4,721,337
15.84
737,577 2.47
4,021,016 13.49
9,809,720 100.00
14,424,751
47.25
7,909,157
25.91
6,515,594
21.34
3,296,843
10.80
1,997,345
6.54
1,299,498
4.26
8,892,663
29.13
4,274,642
14.00
4,618,022
15.13
716,187 2.35
3,199,878 10.48
0,530,322 100.00
13,633,937 47.68
7,403,119 25.89
6,230,819 21.79
3,168,669 11.08
1,904,009 6.66
1,264,660 4.42
8,713,019 30.47
4,185,916 14.64
4,527,104 15.83
722,843 2.53
2,358,402 8.25
8,596,870 100.00
12,927,322
47.86
7,102,580
26.30
5,824,742
21.57
3,179,943
11.77
1,915,140
7.09
1,264,803
4.68
8,630,836
31.96
4,160,859
15.41
4,469,977
16.55
756,753 2.80
1,514,481 5.61
27,009,334 100.00
THE
BOGDAHN
GROUP
Palm Beach Gardens Firefighters'
Historical Asset Allocation By Segment
October 1, 2009 To September 30, 2010
100.0
90.0
80.0
70.0
60.0
C
50.0
0
Q
40.0
30.0
20.0
10.0
0.0
9/09 10/09 11/09 12/09 1 /10 2/10 3/10 4/10 5110 6/10 7/10 8/10 9/10
Domestic Equity International Equity Domestic Fixed Income Real Estate 0 Cash Equivalent
Page 18
7*,*1 THE
$OGDAHN
GROUP
Palm Beach Gardens Firefighters'
Financial Reconciliation Quarter
1 Quarter Ending September 30, 2010
otal Domestic Equity (Composite)
12,937,171
1,447,474
- 125,821
- 21,653
- 72,854
1,362,844
15,672,869
Cana Core Equity Portfolio
7,139,520
1,311,833
- 125,821
- 11,833
- 46,532
701,192
9,061,423
Jana Growth (Equity)
5,797,651
135,641
-
-9,820
- 26,322
661,652
6,611,446
►ternational Equity (Composite)
2,961,002
1,782,684
-
-2,684
- 278
482,254
5,223,533
BC International Portfolio
1,835,139
582,684
-
-2,684
- 278
315,464
2,730,880
tanning & Napier Overseas (EXOSX)
1,125,863
1,200,000
-
-
- -
166,790
2,492,653
otal Fixed Income (Composite)
9,152,954
5,620
-
-5,620
- 106,247
165,870
9,425,070
.gincourt Capital Management
4,431,617
2,669
-
-2,669
49,139
77,636
4,558,392
arcia, Hamilton & Assoc. Fixed
4,721,337
2,951
-
-2,951
- 57,108
88,234
4,866,678
eal Estate
merican Core Realty Fund
737,577
-
-1,807
- 8,878
24,786
769,435
itercontinental Real Estate
-
1,500,000
-
- -
-
1,500,000
.eceipt & Disbursement
4,021,016
2,520,211
- 4,741,725
-
- 60,948 2,841
-
1,741,395
otal Fund Portfolio
29,809,720
7,255,989
- 4,867,546
- 31,763
- 60,948 191,098
2,035,754
34,332,303
THE
BOGDAHN
Page 19 GROUP
Palm Beach Gardens Firefighters'
Financial Reconciliation FYTD
October 1, 2009 To September 30, 2010
otal Domestic Equity (Composite)
12,927,322
1,515,711
- 125,821
- 89,890 -
271,252
1,174,296
15,672,869
ana Core Equity Portfolio
7,102,580
1,370,207
- 125,821
- 70,207 -
174,213
610,452
9,061,423
Jana Growth (Equity)
5,824,742
145,504
-
- 19,683 -
97,039
563,844
6,611,446
►ternational Equity (Composite)
3,179,943
1,790,729
-
- 10,729 -
11,235
252,356
5,223,533
BC International Portfolio
1,915,140
590,729
-
- 10,729 -
654
235,086
2,730,880
tanning & Napier Overseas (EXOSX)
1,264,803
1,200,000
-
- -
10,581
17,269
2,492,653
otal Fixed Income (Composite)
8,630,836
19,333
-
- 19,333 -
423,417
370,817
9,425,070
.gincourt Capital Management
4,160,859
7,873
-
-7,873 -
197,601
199,932
4,558,392
arcia, Hamilton & Assoc. Fixed
4,469,977
11,460
-
- 11,460 -
225,816
170,885
4,866,678
eal Estate
merican Core Realty Fund
756,753
-
-
-7,488
35,625
- 15,454
769,435
itercontinental Real Estate
-
1,500,000
-
- -
-
-
1,500,000
.eceipt & Disbursement
1,514,481
5,597,696
- 5,239,512
- - 139,146
7,876
-
1,741,395
otal Fund Portfolio
27,009,334
10,423,470
- 5,365,333
- 127,441 - 139,146
749,405
1,782,014
34,332,303
THE
E
SOGDAHN
Page 20 GROUP
Palm Beach Gardens Firefighters'
Comparative Performance
As of September 30, 2010
Total Fund Portfolio (Net)
7.17
8.16
8.16
-1.90
2.49
3.55
05/01/1998
Total Fund Policy
8.90
9.32
9.32
-2.66
2.69
Difference
-1.73
-1.16
-1.16
0.76
-0.20
-0.08
Total Fund Portfolio (Gross)
7.27
(87)
8.62
(85)
8.62
(85)
-1.48
(59)
3.02
(74)
4.13
N/A 05/01/1998
Total Fund Policy
8.90
(42)
9.32
(71)
9.32
(71)
-2.66
(85)
2.69
(84)
3.63
N/A
Difference
-1.63
-0.70
-0.70
1.18
0.33
0.50
All Public Plans -Total Fund Median
8.66
9.98
9.98
-1.03
3.63
N/A
Total Equity
12.01
10.56
10.56
N/A
N/A
-0.16
07/31/2008
Total Equity Policy
12.27
9.91
9.91
N/A
N/A
-2.95
Difference
-0.26
0.65
0.65
N/A
N/A
2.79
Total Domestic Equity
11.07
(53)
11.15
(25)
11.15
(25)
-3.75
(13)
2.33
(26)
5.79
(13) 07/01/2002
Russell 3000
11.53
(30)
10.96
(28)
10.96
(28)
-6.59
(52)
0.92
(56)
4.00
(67)
Difference
-0.46
0.19
0.19
2.84
1.41
1.79
US Core/Large Cap Equity (SA +CF) Median
11.11
9.81
9.81
-6.52
1.03
4.40
Dana Core Equity
10.55
(71)
11.12
(25)
11.12
(25)
-4.05
(16)
2.14
(30)
5.67
(15) 07/01/2002
S &P 500
11.29
(41)
10.16
(43)
10.16
(43)
-7.16
(67)
0.64
(68)
3.78
(80)
Difference
-0.74
0.96
0.96
3.11
1.50
1.89
US Core/Large Cap Equity (SA +CF) Median
11.11
9.81
9.81
-6.52
1.03
4.40
Dana Growth Equity
11.68
(62)
11.16
(52)
11.16
(52)
N/A
N/A
17.13
(81) 06/01/2009
Russell 1000 Growth Index
13.00
(38)
12.65
(35)
12.65
(35)
-4.36
(39)
2.06
(48)
21.63
(33)
Difference
-1.32
-1.49
-1.49
N/A
N/A
-4.50
US Growth/Large Cap Equity (SA +CF) Median
12.28
11.27
11.27
-4.96
1.97
20.30
Total International Equity
16.13
(71)
8.14
(50)
8.14
(50)
-5.79
(30)
N/A
4.29
(33) 01/01/2006
MSCI EAFE Index
16.53
(66)
3.71
(75)
3.71
(75)
-9.06
(60)
2.45
(62)
1.71
(60)
Difference
-0.40
4.43
4.43
3.27
N/A
2.58
International Equity (SA +CF +MF) Median
17.43
8.08
8.08
-8.20
3.34
2.52
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
$
Total Equity Policy =85% Russell 3000; 15% MSCI EAFE
p�DAH N
GROUP
Page 21
Palm Beach Gardens Firefighters'
Comparative Performance
As of September 30, 2010
RBC International Portfolio
17.21
(19)
12.31
(9)
12.31
(9)
-5.33
(32)
N/A
7.52 (21)
4.61
(30)
01/01/2006
MSCI EAFE Index
16.53
(38)
3.71
(66)
3.71
(66)
-9.06
(76)
2.45
(77)
1.71
(79)
N/A
Difference
0.68
8.60
8.60
3.73
N/A
2.90
International Active Value Equity (SA +CF) Median
15.77
6.19
6.19
-6.47
4.06
3.28
Manning & Napier Overseas (EXOSX)
15.18
(75)
2.52
(84)
2.52
(84)
N/A
N/A
20.23
(23)
06/01/2009
MSCI EAFE Index
16.53
(57)
3.71
(77)
3.71
(77)
-9.06
(60)
2.45
(58)
17.00
(58)
Difference
-1.35
-1.19
-1.19
N/A
N/A
3.23
International Equity Multi -Cap Core Funds (MF) Median
17.04
6.93
6.93
-8.36
3.01
17.86
Total Fixed Income
2.97
(31)
9.20
(24)
9.20
(24)
8.00
(39)
6.56
(45)
5.67
(58)
07/01/2002
Barclays Capital Intermediate Aggregate
2.07
(89)
7.52
(78)
7.52
(78)
7.10
(73)
6.09
(74)
5.43
(77)
Difference
0.90
1.68
1.68
0.90
0.47
0.24
US Intermediate Duration Fixed Income Accounts (SA) Median
2.76
8.31
8.31
7.66
6.46
5.75
Agincourt Capital Management
2.86
(51)
9.55
(37)
9.55
(37)
N/A
N/A
12.13
(22)
10/01/2008
Barclays Capital Aggregate
2.48
(85)
8.16
(89)
8.16
(89)
7.42
(75)
6.20
(74)
9.35
(88)
Difference
0.38
1.39
1.39
N/A
N/A
2.78
US Broad Market Core Fixed Income (SA +CF) Median
2.86
9.14
9.14
8.10
6.67
10.98
Garcia, Hamilton & Assoc. Fixed
3.08
(22)
8.87
(28)
8.87
(28)
N/A
N/A
9.46
(18)
07/01/2008
Barclays Capital Intermediate Aggregate
2.07
(89)
7.52
(78)
7.52
(78)
7.10
(73)
6.09
(74)
7.55
(74)
Difference
1.01
1.35
1.35
N/A
N/A
1.91
US Intermediate Duration Fixed Income Accounts (SA) Median
2.76
8.31
8.31
7.66
6.46
8.25
American Core Realty Fund
4.56 (51)
2.72 (62)
2.72 (62)
-10.25 N/A
N/A
-3.70 N/A 08/01/2006
Real Estate Policy
5.99 (29)
7.52 (21)
7.52 (21)
-10.41 N/A
N/A
-3.29 N/A
Difference
-1.43
-4.80
-4.80
0.16
N/A
-0.41
US Private Real Estate -Oven End (SA +CF) Median
4.61
5.51
5.51
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
Page 22 GROUP
Total Fund Portfolio (Net)
vial Fund Policy
Total Fund Portfolio (Gross)
Total Fund Policy
Difference
All Public Plans -Total Fund Median
Total Equity
Total Equity Policy
Difference
Total Domestic Equity
Russell 3000
Difference
US Core/Large Cap Equity (SA +CF) Median
Dana Equity Portfolio
S &P 500
Difference
US Core/Large Cap Equity (SA +CF) Median
Dana Growth (Equity)
Russell 1000 Growth Index
Difference
US Growth/Large Cap Equity (SA +CF) Median
Total International Equity
MSCI EAFE Index
Difference
International Eauitv (SA +CF +MF) Median
Palm Beach Gardens Firefighters'
Comparative Performance
As of September 30, 2010
8.16
-0.46
-12.30
10.96
7.92
13.82
10.51
9.32
-1.86
-14.02
13.39
9.16
9.23
-1.16
1.40
1.72
-2.43
-1.24
4.59
0.67
8.62
(85)
0.00
(67)
-11.96
(28)
11.67
(92)
8.65
(51)
14.35
(27)
11.19
(51)
9.32
(71)
-1.86
(84)
-14.02
(55)
13.39
(70)
9.16
(42)
9.23
(85)
9.84
(71)
-0.70
1.86
2.06
-1.72
-0.51
5.12
1.35
9.98
1.34
-13.67
14.43
8.70
12.54
11.19
10.56
-1.59
N/A
N/A
N/A
N/A
N/A
9.91
-4.90
N/A
N/A
N/A
N/A
N/A
0.65
3.31
N/A
N/A
N/A
N/A
N/A
11.15
(25)
-3.91
(26)
-16.51
(16)
14.18
(84)
10.21
(64)
21.50
(9)
15.99
(27)
10.96
(28)
-6.42
(50)
-21.52
(55)
16.52
(54)
10.22
(63)
12.69
(73)
13.87
(59)
0.19
2.51
5.01
-2.34
-0.01
8.81
2.12
9.81
-6.42
-21.11
16.67
10.81
14.32
14.22
11.32
(22)
-10.07
(92)
-19.61
(35)
14.18
(84)
10.21
(64)
21.50
(9)
15.99
(27)
10.16
(43)
-6.91
(60)
-21.98
(65)
16.44
(58)
10.79
(51)
12.25
(80)
13.87
(59)
1.16
-3.16
2.37
-2.26
-0.58
9.25
2.12
9.81
-6.42
-21.11
16.67
10.81
14.32
14.22
11.16
(52)
N/A
N/A
N/A
N/A
N/A
N/A
12.65
(35)
-1.85
(35)
-20.88
(52)
19.35
(55)
6.04
(59)
11.60
(71)
7.51
(74)
-1.49
N/A
N/A
N/A
N/A
N/A
N/A
11.27
-3.25
-20.59
19.91
6.79
14.04
10.06
8.14
(50)
11.28
(25)
-30.51
(45)
24.22
(71)
NWA
N/A
N/A
3.71
(75)
3.80
(51)
-30.13
(41)
25.38
(63)
19.65
(43)
26.32
(53)
22.52
(41)
4.43
7.48
-0.38
-1.16
N/A
N/A
N/A
8.08
4.10
-31.17
27.61
18.95
26.59
21.26
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 23
Palm Beach Gardens Firefighters'
Comparative Performance
As of September 30, 2010
RBC International Portfolio
12.31
(9)
7.72
(32)
-29.87
(73)
24.22
(52)
N/A
-35.19 (55)
N/A
18.21 (54)
N/A
N/A
MSCI EAFE Index
3.71
(66)
3.80
(57)
-30.13
(75)
25.38
(45)
19.65
(71)
26.32
(64)
22.52
(77)
Difference
8.60
3.92
0.26
-1.16
N/A
N/A
N/A
International Active Value Equity (SA +CF) Median
6.19
4.77
-27.04
24.45
20.96
27.15
25.40
Manning & Napier Overseas (EXOSX)
2.52
(84)
N/A
N/A
N/A
N/A
N/A
N/A
MSCI EAFE Index
3.71
(77)
3.80
(48)
-30.13
(48)
25.38
(56)
19.65
(32)
26.32
(40)
22.52
(17)
Difference
-1.19
N/A
N/A
N/A
N/A
N/A
N/A
International Equity Multi -Cap Core Funds (MF) Median
6.93
3.03
-30.45
26.18
18.17
25.57
19.27
Total Fixed Income
9.20
(24)
15.33
(9)
0.03
(86)
5.24
(74)
3.64
(82)
1.77
(76)
156
Barclays Capital Intermediate Aggregate
7.52
(78)
9.69
(81)
4.16
(36)
5.33
(66)
3.84
(59)
2.23
(42)
3.39
(27)
Difference
1.68
5.64
-4.13
-0.09
-0.20
-0.46
-0.83
US Intermediate Duration Fixed Income Accounts (SA) Median
8.31
11.43
3.29
5.47
3.91
2.10
2.88
Agincourt Capital Management
9.55
(37)
14.76
(20)
N/A
N/A
N/A
N/A
N/A
Barclays Capital Aggregate
8.16
(89)
10.56
(81)
3.65
(35)
5.14
(54)
3.67
(75)
2.80
(80)
3.68
(60)
Difference
1.39
4.20
N/A
N/A
N/A
N/A
N/A
US Broad Market Core Fixed Income (SA +CF) Median
9.14
12.51
2.57
5.16
3.86
3.10
3.81
Garcia, Hamilton & Assoc. Fixed
8.87
(28)
15.91
(7)
N/A
N/A
N/A
N/A
N/A
Barclays Capital Intermediate Aggregate
7.52
(78)
9.69
(81)
4.16
(36)
5.33
(66)
3.84
(59)
2.23
(42)
3.39
(27)
Difference
1.35
6.22
N/A
N/A
N/A
N/A
N/A
US Intermediate Duration Fixed Income Accounts (SA) Median
8.31
11.43
3.29
5.47
3.91
2.10
2.88
American Core Realty Fund
2.72 (62)
-32.96 (45)
4.98 (35)
16.31 (80)
N/A
N/A
N/A
Real Estate Policy
7.52 (21)
-35.19 (55)
3.18 (52)
18.21 (54)
N/A
N/A
N/A
Difference
-4.80
2.23
1.80
-1.90
N/A
N/A
N/A
US Private Real Estate -Oven End (SA +CF) Median
5.51
-33.38
3.47
18.34
17.92
19.86
12.50
Returns for periods greater than 1 yr. are annualized. Returns are expressed as percentages fHE
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 24
Palm Beach Gardens Firefighters'
Total Fund Portfolio
September 30, 2010
Financial Reconciliation I I'
V To September
Market Value
Market Value
As of
Net
Contributions Distributions Fees
Expenses
Capital
Income
As of
9/30/2009
Transfers
Apprec./Deprec.
9/30/2010
Total Fund Portfolio 27,009
-3 5,598 -537 -127
-139
749 1,782
34,332
Financial Reconciliation
1 1
Market Value
Market Value
As of
Net
Contributions Distributions Fees
Expenses
Capital
Income
As of
4/30/1998
Transfers
App rec./ D prec.
9/30/2010
Total Fund Portfolio 2,048
Peer Group Analysis -All Public Plans -Total Fund (7mmulative Performance
11
11t
e
0.00
c
L?
L
d
a
-10.00
-20.00
$175.0
$160.0 $160.1
$152.4
$145.0
$130.0
$115.0
1 Oct -2009 1 2 3 4 5
Quarter To Year Years Years Years Years $100.0
Sep -2010
■ Total Fund Portfolio 7.27 (87) 8.62 (85) 8.62 (85) 4.22 (79) -1.48 (59) 1.66 (76) 3.02 (74)
• Total Fund Policy 8.90 (42) 9.32 (71) 9.32 (71) 3.58 (87) -2.66 (85) 1.13 (90) 2.69 (84) $85.0
6/98 12/00 6/03 12/05 6/08 9/10
Median 8.66 9.98 9.98 5.84 - 1.03 2.41 3.63 -Total Fund Portfolio -Total Fund Policy
Comparative 1
1 1 1 1 1 1
Quarter Quarter Quarter Quarter Quarter Quarter
Ending Ending Ending Ending Ending Ending
Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Mar -2009
Total Fund Portfolio 4.88 (20) 3.70 (61) 2.65 (87) 10.13 (75) 5.76 (93) -4.00 (19)
Total Fund Policy -6.54 (76) 3.89 (47) 3.39 (54) 11.40 (52) 11.73 (32) -7.83 (91)
All Public Plans -Total Fund Median -5.84 3.84 3.43 11.45 10.63 -5.80
THE
SOGDAHN
Page 25 ` GROUP
30.0
Over
Performance
20.0
e 10.0
0
Y:. 0.0
0
0.
-10.0
w
e -20.0
F" -20.0 -10.0
-W OverPeifornrmcc -¢ Dcc -2005
10.00
5.00
0.00
v
-5.00
a
10.00
0.0 10.0
Total Fund Policy ( %)
-*- Sep -2010
0
Palm Beach Gardens Firefighters'
Total Fund Portfolio
September 30, 2010
Under
Performance
20.0 30.0
0.00
25.00
■ .
. ■ .
20.00
■
■
0.00 5.00
d
■
25.00
Risk (Standard Deviation %)
�
%)
50.00
Return Standard Deviation
Return
Standard Deviation
• • •
• � �
� �
�
■ Total Fund Portfolio
a 75.00
9.73
� �
•
-2.66
15.97
• Total Fund Policy
2.69
12.92
09
-1.03
14.50
- Median
3.63
100.00
Historical Statistics
- 3 Years
Tracking
Up
Down
12/05
12/06
12/07
12/08
12/09 9/10
Market
Total Period
5 -25
25- Median
IR
Median -75
75 -95
Count
Count
Count
Count
■ Total Fund Portfolio
20
0 (0 %)
12 (60 %)
Total Fund Portfolio
8 (40 %)
0 (0 %)
0 Total Fund Policy
20
0 (0 %)
0 (0 %)
-0.16
13 (65 %)
7 (35 %)
8.00
6.00
4.00
F 2.00
0.00
a
-2.00
0
0.00
5.00
10.00 15.00
20.00
25.00
30.00
0.00 5.00
10.00
15.00 20.00
25.00
Risk (Standard Deviation %)
Risk (Standard Deviation
%)
Return Standard Deviation
Return
Standard Deviation
■ Total Fund Portfolio
-1.48
11.79
■ Total Fund Portfolio
3.02
9.73
• Total Fund Policy
-2.66
15.97
• Total Fund Policy
2.69
12.92
- Median
-1.03
14.50
- Median
3.63
11.78
Historical Statistics
- 3 Years
Tracking
Up
Down
Sharpe
Downside
Market
Market
Alpha
IR
Beta
Error
Capture
Capture
Ratio
Risk
Total Fund Portfolio
5.03
75.09
73.29
0.22
0.12
-0.16
0.72
8.33
Total Fund Policy
0.00
100.00
100.00
0.00
N/A
-0.15
1.00
11.44
Historical
Tracking
Up
Down
Sharpe
Downside
Market
Market
Alpha
IR
Beta
Error
Capture
Capture
Ratio
Risk
Total Fund Portfolio
4.19
79.90
72.44
0.90
-0.01
0.09
0.73
6.46
Total Fund Policy
0.00
100.00
100.00
0.00
N/A
0.07
1.00
8.87
Page 26
THE
BOGDAHN
GROUP
Palm Beach Gardens Firefighters'
Total Domestic Equity
September 30, 2010
Market Value Net Capital Market Value
As of Transfers Contributions Distributions Fees Expenses Income Apprec./ Deprec. As of
6/30/2010 9/30/2010
Total Domestic Equity 12,937 1,322 -22 73 1,363 15,673
Market Value
As of Net 9/30/2009 Transfers
Total Domestic Equity 12,927 1,390
LU.UU
10.00
e
� 0.00
L
w
�V
10.00
Capital Market Value
Contributions Distributions Fees Expenses Income Apprec./ Deprec. As of
9/30/2010
-90 271 1,174 15,673
_20.00 1
1
1
1
1
1
1
Quarter
1
Oct -2009
1
2
3
4
5
Ending
Quarter
To
Year
Years
Years
Years
Years
Dec -2009
Sep -2009
Sep -2010
Mar -2009
Total Domestic Equity
-10.31 (17)
5.80 (28)
5.47 (72)
■ Total Domestic Equity
11.07 (53)
11.15 (25)
11.15 (25)
3.35 (19)
-3.75 (13)
0.45 (23)
2.33 (26)
• Domestic Equity Policy
11.53 (30)
10.96 (28)
10.96 (28)
1.90 (43)
-6.59 (52)
-1.29 (51)
0.92 (56)
Median
11.11
9.81
9.81
1.44
-6.52
-1.28
1.03
S180,0
$160.0
$140.0
$120.0
$100.0
W21
138.2
$80.0
6/02 3/04 12/05 9/07 6/09 9/10
-Total Domestic Equity - DomesticEquityPolicy
Page 27
THE
BOGDAHN
G1X%_j
1
1
1
1
1
1
Quarter
Quarter
Quarter
Quarter
Quarter
Quarter
Ending
Ending
Ending
Ending
Ending
Ending
Jun -2010
Mar -2010
Dec -2009
Sep -2009
Jun -2009
Mar -2009
Total Domestic Equity
-10.31 (17)
5.80 (28)
5.47 (72)
13.52 (83)
12.24 (84)
-7.61 (20)
Domestic Equity Policy
-11.32 (40)
5.94 (24)
5.90 (54)
16.31 (23)
16.82 (25)
-10.80 (58)
US Core/Large Cap Equity (SA +CF) Median
-11.45
5.40
6.01
15.28
15.58
-10.44
Page 27
THE
BOGDAHN
G1X%_j
45.0
Over
Performance
30.0
15.0
W 0.0
-15.0
A
:? -30.0
0
F -30.0 -15.0 0.0 15.0
Domestic Equity Policy( %)
-
OverPetformncc -¢Dcc -2005 Sep -2010
10.00
0.00
F -10.00
c
c -20.00
W
a
-30.00
Palm Beach Gardens Firefighters'
Total Domestic Equity
September 30, 2010
Under
P erfomance
30.0 45.0
0.00
20.00 30.00
40.00
50.00
0.00 10.00
20.00
30.00
M M M M
M M M
Risk (Standard Deviation %)
M
25.00
M M M■•■
M M
M M M
v
Standard Deviation
■ Total Domestic Equity
-3.75
19.76
50.00
2.33
15.97
Domestic Equity Policy
-6.59
23.70
• Domestic Equity Policy
0.92
19.14
- Median
• ®
®
•
- Median
1.03
c 75.00
®
•
•
Down
Sharpe
Downside
•
Market
a
100.00
IR
Beta
Error
Capture
Capture
Ratio
Risk
12/05
12/06
12/07
12/08
0.51
12/09 9/10
Total Period
5 -25
25- Median
100.00
Median -75
75 -95
Count Count Count Count
■ Total Domestic Equity 20 11 (55 %) 9 (45 %) 0 (0 %) 0 (0 %)
• Domestic Equity Policy 20 0 (0 %) 0 (0 %) 16 (80 %) 4 (20 %)
10.00
5.00
0.00
G
c -5.00
d
a
10.00
0.00 10.00
20.00 30.00
40.00
50.00
0.00 10.00
20.00
30.00
40.00
Risk (Standard Deviation %)
Risk (Standard Deviation %)
Return Standard Deviation
Return
Standard Deviation
■ Total Domestic Equity
-3.75
19.76
■ Total Domestic Equity
2.33
15.97
Domestic Equity Policy
-6.59
23.70
• Domestic Equity Policy
0.92
19.14
- Median
-6.52
22.74
- Median
1.03
18.55
Historical Statistics - 3 Years
Tracking
Up
Down
Sharpe
Downside
Market
Market
Alpha
IR
Beta
Error
Capture
Capture
Ratio
Risk
Total Domestic Equity 4.65
90.14
84.43
1.78
0.51
-0.15
0.86
14.83
Domestic Equity Policy 0.00
100.00
100.00
0.00
N/A
-0.24
1.00
17.50
Historical
Tracking
Up
Down
Sharpe
Downside
Market
Market
Alpha
IR
Beta
Error
Capture
Capture
Ratio
Risk
Total Domestic Equity 3.92
93.47
88.26
1.36
0.26
0.07
0.87
11.86
Domestic Equity Policy 0.00
100.00
100.00
0.00
N/A
0.00
1.00
13.79
Page 28
THE
BOGDAHN
GROUP
Palm Beach Gardens Firefighters'
Dana Equity Portfolio
September 30, 2010
Financial Reconciliation I Quarter
Market Value Net Capital Market Value
As of Transfers Contributions Distributions Fees Expenses Income Apprec./ Deprec. As of
6/30/2010 9/30/2010
Dana Equity Portfolio 7,140 1,186 - -12 47 701 9,061
Financial Reconciliation October 11 1 To September 30, 2010
Market Value Market Value Net Capital As of Transfers Contributions Distributions Fees Expenses Income Appec./ D prec. As of
9/30/2009 9/30/2010
Dana Equity Portfolio 7,103 1,244 -70 174 610 9,061
Peer Group Core/Large Cap Equity Performance
S180,0
20.00
10.00 � $160.0 $157.6
0.00 � $140.0 $138.2
c
a ■
-10.00 $120.0
-20.00 1 1 1 1 1
1 Oct -2009 1 2 3 4 5 $100.0
Quarter To Year Years Years Years Years
Sep -2010
■ Dana Equity Portfolio 10.55 (71) 11.12 (25) 11.12 (25) 3.87 (16) -4.05 (16) 0.22 (26) 2.14 (30)
• Dana Equity Policy 11.53 (30) 10.96 (28) 10.96 (28) 1.90 (43) -6.59 (52) -1.29 (51) 0.92 (56) $80.0
6/02 3/04 12/05 9/07 6/09 9/10
Median 11.11 9.81 9.81 1.44 -6.52 -1.28 1.03 -Dana Equity Portfolio -Dana Equity Policy
Comparative 1
1 1 1 1 1 1
Quarter Quarter Quarter Quarter Quarter Quarter
Ending Ending Ending Ending Ending Ending
Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Mar -2009
Dana Equity Portfolio -9.73 (12) 6.84 (9) 4.23 (91) 14.76 (64) 12.17 (84) -7.61 (20)
Dana Equity Policy -11.32 (40) 5.94 (24) 5.90 (54) 16.31 (23) 16.82 (25) -10.80 (58)
US Core/Large Cap Equity (SA +CF) Median -11.45 5.40 6.01 15.28 15.58 -10.44
THE
BOGDAHN
Page 29 GRouP
45.0
30.0
15.0
0
0
0.0
po.
-15.0
.c
W
-30.0
Over
Performance
Ca -30.0 -15.0 0.0 15.0
Dana Equity Policy ( %)
-W OverPetfornrmcc -¢ Dcc -2005 Sep -2010
10.00
0.00
-10.00
c
c -20.00
W
a
-30.00
Palm Beach Gardens Firefighters'
Dana Equity Portfolio
September 30, 2010
Under
Performance
30.0 45.0
0.00
20.00 30.00
40.00
50.00
0.00 10.00
20.00
30.00
M M M M
M M M
Risk (Standard Deviation %)
M
25.00
Risk (Standard Deviation
%)
M M ■
M
a
Return
■ ■
M
■ Dana Equity Portfolio
50.00
19.80
M
2.14
16.02
• Dana Equity Policy
-6.59
23.70
0 Dana Equity Policy
A
• •
• •
•
-6.52
22.74
75.00
0
•
•
•
Historical Statistics - 3 Years
Tracking
P
Down
Sharpe
a
Error
Market
Market
Alpha
IR
100.00
Beta
Risk
Capture
Capture
12/05
12/06
12/07
12/08
12/09 9/10
87.55
Total Period
5 -25
25- Median
Median -75
75 -95
14.73
Dana Equity Policy 0.00
Count
Count
Count
Count
■ Dana Equity Portfolio
20
11 (55 %)
9 (45 %)
0 (0 %)
0 (0 %)
• Dana Equity Policy
20
0 (0 %)
0 (0 %)
16 (80 %)
4 (20 %)
10.00
5.00
0.00
G
c -5.00
d
a
10.00
0.00 10.00
20.00 30.00
40.00
50.00
0.00 10.00
20.00
30.00
40.00
Risk (Standard Deviation %)
Risk (Standard Deviation
%)
Return Standard Deviation
Return
Standard Deviation
■ Dana Equity Portfolio
-4.05
19.80
■ Dana Equity Portfolio
2.14
16.02
• Dana Equity Policy
-6.59
23.70
0 Dana Equity Policy
0.92
19.14
- Median
-6.52
22.74
- Median
1.03
18.55
Historical Statistics - 3 Years
Tracking
Up
Down
Sharpe
Downside
Error
Market
Market
Alpha
IR
Ratio
Beta
Risk
Capture
Capture
Dana Equity Portfolio 4.46
87.55
83.22
1.38
0.45
-0.17
0.85
14.73
Dana Equity Policy 0.00
100.00
100.00
0.00
N/A
-0.24
1.00
17.50
Historical
Tracking
Up
Down
Sharpe
Downside
Market
Market
Alpha
IR
Beta
Error
Capture
Capture
Ratio
Risk
Dana Equity Portfolio 3.79
91.64
87.18
1.16
0.21
0.05
0.86
11.78
Dana Equity Policy 0.00
100.00
100.00
0.00
N/A
0.00
1.00
13.79
Page 30
THE
1� SOGDAHN
GROUP
Palm Beach Gardens Firefighters'
Dana Growth Equity
September 30, 2010
Financial Reconciliation 1
Market Value Net Capital Market Value
As of Transfers Contributions Distributions Fees Expenses Income Apprec% Deprec. As of
6/30/2010 9/30/2010
Dana Growth Equity 5,798 136 - -10 26 662 6,611
Financial Reconciliation October 11 1 To September 30, 2010
Market Value Net Capital Market Value
As of Transfers Contributions Distributions Fees Expenses income Apprec ./Deprec. As of
9/30/2009 9/30/2010
Dana Growth Equity 5,825 146 -20 97 564 6,611
Peer Group Analysis - US Growth/Large Cap 1 Performance
5130.0
30.00 $128.4
20.00 - $124.5
10.00 - $120.0
y
C
-10.00
$110.0
-20.00 1 1 1 1 1 1
1 Oct -2009 1 2 3 4 5
Quarter To Year Years Years Years Years
Sep -2010
■ Dana Growth Equity 11.68 (62) 11.16 (52) 11.16 (52) N/A N/A N/A N/A
• Russell 1000 Growth Index 13.00 (38) 12.65 (35) 12.65 (35) 5.15 (31) 4.36 (39) 1.08 (44) 2.06 (48) $100.0
6/09 9/09 12/09 3/10 6/10 9/10
Median 12.28 11.27 11.27 3.90 -4.96 0.74 1.97 - Dana Growth Equity - Russell 1000 Growth Index
Comparative 1
1 1 1 1 1 1
Quarter Quarter Quarter Quarter Quarter Quarter
Ending Ending Ending Ending Ending Ending
Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Mar -2009
Dana Growth Equity -11.02 (33) 4.57 (54) 6.97 (53) 12.04 (82) N/A N/A
Russell 1000 Growth Index -11.75 (54) 4.65 (52) 7.94 (29) 13.97 (53) 16.32 (34) -4.12 (44)
US Growth/Large Cap Equity (SA +CF) Median -11.63 4.68 7.04 14.03 15.01 -4.67
THE
i� SOGDAHN
Page 31 ~ GROUP
Palm Beach Gardens Firefighters'
Total International Equity
September 30, 2010
Financial Reconciliation Quarter
Market Value Net Capital Market Value
As of Transfers Contributions Distributions Fees Expenses Income Apprec./ Deprec. As of
6/30/2010 9/30/2010
Total International Equity 2,961
1,783 - -3
482
5,224
Financial Reconciliation October
I I' To September 30, 2010
Market Value
Net
Capital
Market Value
As of
Transfers Contributions Distributions Fees
Expenses Income Appreed Deprec
As of
9/30/2009
9/30/2010
Total International Equity 3,180
1,791 -11
- 11 252
5,224
Peer Group I
1
Performance
S160,0
30.00
20.00
10.00
e
C
E 0.00
a
-10.00
-20.00
$140.0
S122.1
$120.0
S108.4
$100.0
1 Oct -2009 1 2 3 4 5 $80.0
Quarter To Year Years Years Years Years
Sep -2010
■ Total International Equity 16.13 (71) 8.14 (50) 8.14 (50) 9.70 (32) -5.79 (30) 0.95 (39) N/A
• MSCI EAFE Index 16.53 (66) 3.71 (75) 3.71 (75) 3.75 (62) -9.06 (60) -1.45 (64) 2.45 (62) $60.0
12/05 12/06 12/07 12/08 12/09 9/10
Median 17.43 8.08 8.08 5.54 -8.20 -0.34 3.34 -Total International Equity - MSCI EAFE Index
Comparative Performance
1 1 1 1 1 1
Quarter Quarter Quarter Quarter Quarter Quarter
Ending Ending Ending Ending Ending Ending
Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Mar -2009
Total International Equity -10.19 (30) 4.05 (17) -0.35 (94) 19.61 (42) 16.68 (98) -5.12 (22)
MSCI EAFE Index -13.75 (71) 0.94 (67) 2.22 (68) 19.52 (44) 25.85 (50) -13.85 (70)
International Equity (SA +CF +MF) Median -12.16 1.62 3.39 19.14 25.70 -11.69
THE
SOGDAHN
Page 32 GROUP
5.0
Over
P erlorn once
0.0
0
it -5.0
c
w
� -10.0
Q
0
-15.0
,.., -20.0
■
\+I
R
o -20.0 -15.0 -10.0 -5.0
F
MSCI EAFE Index ( %)
f llndcrPcrNrniincc -W Over Perfor"nce Dec -2008
15.00
0.00
-15.00
-30.00
a
-45.00
Palm Beach Gardens Firefighters'
Total International Equity
September 30, 2010
Under
Performance
0.0 5.0
-*- Sep -2010
0.00
25.00 M M ■
C4 M M
a 50.00 • • • • • • ■
QM
Q 75.00
a
100.00
12/05 12/06 12/07 12/08 12/09 9/10
Total Period 5 -25 25- Median Median -75 75 -95
Count Count Count Count
■ Total International Equity 8 1 (13 %) 5 (63 %) 2 (25 %) 0 (0 %)
• MSCI EAFE Index 20 0 (0 %) 4 (20 %) 16 (80 %) 0 (0 %)
30.00
20.00
10.00
0.00
° -10.00
a-20.00
-30.00
0.00 20.00
40.00 60.00
80.00
100.00
0.00 10.00 20.00
30.00
40.00
50.00 60.00
Risk (Standard Deviation %)
Risk (Standard Deviation %)
Return Standard
Deviation
Return
Standard Deviation
■ Total International Equity
-5.79
24.15
■ Total International Equity
N/A
N/A
• MSCI EAFE Index
-9.06
29.38
• MSCI EAFE Index
2.45
23.97
Median
-8.20
30.15
- Median
3.34
24.80
Historical Statistics - 3 Years
Tracking
Up
Down
Sharpe
Downside
Market
Market
Alpha
IR
Beta
Error
Capture
Capture
Ratio
Risk
Total International Equity 10.29
83.39
79.53
1.12
0.24
-0.21
0.77
16.63
MSCI EAFE Index 0.00
100.00
100.00
0.00
N/A
-0.27
1.00
20.03
Historical
Tracking
Up
Down
Sharpe
Downside
Market
Market
Alpha
IR
Beta
Error
Capture
Capture
Ratio
Risk
Total International Equity N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
MSCI EAFE Index 0.00
100.00
100.00
0.00
N/A
0.10
1.00
15.69
Page 33
�THY, $OGDAHN
GROUP
Palm Beach Gardens Firefighters'
RBC International Portfolio
September 30, 2010
Financial Reconciliation
I I1
Market Value
Market Value
Oct -2009 1
As of
Net
Contributions Distributions Fees
Capital
Expenses Income
As of
6/30/2010
Transfers
Appec/ D prec.
9/30/2010
RBC International Portfolio
1,835
583 - -3
315
2,731
Financial Reconciliation
October
I I' To September 30, 2010
Sep -2010
Market Value
■ RBC International Portfolio
Market Value
12.31 (9) 12.31 (9)
As of
Net
Contributions Distributions Fees
Capital
Expenses Income
As of
9/30/2009
Iransfers
Appreed Deprec.
9/30/2010
RBC International Portfolio
1,915
591 I1
1 23S
2,731
S160,0
30.00
20.00
10.00
e
c
`c
0.00
CC
10.00
-20.00
$140.0
$123.9
$120.0
$108.4
$100.0
$80.0
1
Oct -2009 1
2
3
4 5
Quarter
To Year
Years
Years
Years Years
Sep -2010
■ RBC International Portfolio
17.21 (19)
12.31 (9) 12.31 (9)
9.99 (22)
-5.33 (32)
1.32 (37) N/A
• MSCI EAFE Index
16.53 (38)
3.71 (66) 3.71 (66)
3.75 (64)
- 9.06 (76)
-1.45 (70) 2.45 (77)
$60.0
12/05 12/06
12/07 12/08
12/09 9/10
Median
15.77
6.19 6.19
5.78
-6.47
0.39 4.06
-RBCInternational
Portfolio - MSCIEAFEIndex
Comparative Performance
1
1
1
1
1
1
Quarter
Quarter
Quarter
Quarter
Quarter
Quarter
Ending
Ending
Ending
Ending
Ending
Ending
Jun -2010
Mar -2010
Dec -2009
Sep -2009
Jun -2009
Mar -2009
RBC International Portfolio
-8.12 (7)
4.90
(9)
-0.58 (90)
15.90 (86)
16.56 (95)
-5.12 (2)
MSCI EAFE Index
-13.75 (84)
0.94
(66)
2.22 (50)
19.52 (46)
25.85 (30)
-13.85 (61)
International Active Value Equity (SA +CF) Median
-12.01
1.96
2.06
19.27
23.57
-12.99
THE
`
SOGDAHN
GROUP
Page 34
5.0
Over
P erfomrance
0.0
e
°- -5.0
a -10.0
G
-15.0
e
r -20.0
■
N
-20.0 -15.0 -10.0 -5.0
a
MSCI EAFE Index (% )
5.00
0.00
-5.00
e
� -10.00
L
v -15.00
a
-20.00
-- Undcr PcrNrniincc f Over Performance f Dec -2008
Palm Beach Gardens Firefighters'
RBC International Portfolio
September 30, 2010
Under
Performance
0.0 5.0
Sep -2010
15.00 20.00 25.00 30.00 35.00
Risk (Standard Deviation %)
Return Standard Deviation
■ RBC International Portfolio -5.33 23.12
• MSCI EAFE Index -9.06 29.38
- Median -6.47 27.99
0.00
a
25.00
09
Downside
Error
Market
Market
Alpha
IR
Ratio
■
•
Rislc
50.00
Capture
•
L
•
•
■
77.80
73.99
75.00
� � • �
�
• � � �
i
MSCI EAFE index
0.00
100.00
100.00
0.00
■
Ci
1.00
20.03
Historical
Tracking
Up
Down
100.00
Sharpe
Downside
12/05 12/06
12/07
12/08
12/09 9/10
Beta
Total Period 5 -25
25- Median
Median -75
75 -95
Capture
Count
Count
Count
Count
■ RBC International Portfolio
8 0 (0 %)
5 (63 %)
1 (13 %)
2 (25 %)
• MSCI EAFE Index
N/A
20 0 (0 %)
1 (5 %)
15 (75 %)
4 (20 %)
15.00
10.00
5.00
L _
P 0.00
a
-5.00
40.00 10.00 15.00 20.00 25.00 30.00
Risk (Standard Deviation %)
Return Standard Deviation
■ RBC International Portfolio N/A N/A
• MSCI EAFE Index 2.45 23.97
- Median 4.06 22.92
35.00
Page 35
THE
SOGDAHN
GROUP
Tracking
Sharpe
Downside
Error
Market
Market
Alpha
IR
Ratio
Beta
Rislc
Capture
Capture
RBC International Portfolio
10.40
77.80
73.99
129
0.27
-0.20
0.75
15.94
MSCI EAFE index
0.00
100.00
100.00
0.00
N/A
-0.27
1.00
20.03
Historical
Tracking
Up
Down
Sharpe
Downside
Market
Market
Alpha
IR
Beta
Error
Capture
Capture
Ratio
Risk
RBC International Portfolio
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
MSCI EAFE Index
0.00
100.00
100.00
0.00
N/A
0.10
1.00
15.69
Page 35
THE
SOGDAHN
GROUP
Palm Beach Gardens Firefighters'
Manning & Napier Overseas (EXOSX)
September 30, 2010
Financial Reconciliation Quarter
Market Value Net Capital Market Value
As of Transfers Contributions Distributions Fees Expenses Income Apprec./ Deprec. As of
6/30/2010 9/30/2010
Manning & Napier Overseas (EXOSX) 1,126 1,200
Financial Reconciliation October II' To September 30,2010
Market Value Net
As of Transfers Contributions Distributions Fees
9/30/2009
Manning & Napier Overseas (EXOSX) 1,265 1,200
167 2,493
Capital Market Value
Expenses income As of
Apprec./ Deprec. 9/30/2010
Cuml
11 17
2,493
■
30.00 W__8.9
20.00 � $124.0
10.00- $120.0
E
0.00-
z
-10.00
$110.0-
-20.00
1 Oct -2009 1 2 3 4 5
Quarter To Year Years Years Years Years
Sep -2010
■ Manning & Napier Overseas (EXOSX) 15.18 (75) 2.52 (84) 2.52 (84) N/A N/A N/A N/A $100.0 T I
• MSCI EAFE Index 16.53 (57) 3.71 (77) 3.71 (77) 3.75 (62) -9.06 (60) -1.45 (68) 2.45 (58) 6/09 9/09 12/09 3/10 6/10 9/10
- Manning & Napier Overseas (EXOSX)
Median 17.04 6.93 6.93 4.69 -8.36 -0.50 3.01 - MSCI EAFE Index
Comparative Performance
1 1 1 1 1 1
Quarter Quarter Quarter Quarter Quarter Quarter
Ending Ending Ending Ending Ending Ending
Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Mar -2009
Manning & Napier Overseas (EXOSX) -13.36 (73) 2.75 (18) -0.01 (91) 25.72 (7) N/A N/A
MSCI EAFE Index -13.75 (80) 0.94 (68) 2.22 (63) 19.52 (33) 25.85 (38) -13.85 (61)
International Equity Multi -Cap Core Funds (MF) Median -12.33 1.31 2.74 18.63 24.02 -12.41
THE
BOGDAHN
Page 36 GRouP
THE
SOGDAHN
Page 37 GROUP
Palm Beach Gardens Firefighters'
Total Fixed Income
September 30, 2010
Financial Reconciliation I i1
Market Value
Market Value
As of
Net
Contributions Distributions Fees
Ca ./ ital
Expenses Income
As of
6/30/2010
Transfers
Apprec/ Deprec.
9/30/2010
Total Fixed Income 9,153
6 - -6
106 166
9,425
Financial Reconciliation October
I I' To September 30, 2010
Market Value
Market Value
As of
Contributions Distributions Fees
Expenses Income
%
As of
9/30/2009
Transfers
Appec Deprec.
9/30/2010
Total Fixed Income 8,631 19 - - -19 423 371 9,425
Peer Group Broad Market Core 1 Income Performance
5175.0
18.00
15.00 $160.0 $157.6
154.7
12.00
$145.0
e
9.00
C
x $130.0
6.00
3.00- $115.0
0.00
$100.0
1 Oct -2009 1 2 3 4 5
Quarter To Year Years Years Years Years
Sep -2010
■ Total Fixed Income 2.97 (40) 9.20 (49) 9.20 (49) 12.22 (21) 8.00 (54) 7.31 (53) 6.56 (54) $85.0
• Barclays Capital Intermediate Aggregate 2.07 (99) 7.52 (96) 7.52 (96) 8.60 (95) 7.10 (79) 6.65 (79) 6.09 (80) 6/02 3/04 12/05 9/07 6/09 9/10
- Total Fixed Income
Median 2.86 9.14 9.14 10.98 8.10 7.35 6.67 - BarclaysCapitalIntermediateAggregate
Comparative 1
I 1 1 1 1 1
Quarter Quarter Quarter Quarter Quarter Quarter
Ending Ending Ending Ending Ending Ending
Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Mar -2009
Total Fixed Income 2.93 (48) 2.06 (36) 0.95 (22) 5.06 (20) 2.62 (51) 0.99 (37)
Barclays Capital Intermediate Aggregate 2.92 (48) 1.81 (56) 0.53 (57) 3.21 (68) 1.68 (74) 0.91 (38)
US Intermediate Duration Fixed Income Accounts (SA) Median 2.90 1.84 0.59 3.57 2.63 0.74
T SOGDAHN
Page 38 GROUP
10.0
9.0
6.0
e
S 3.0
v 0.0
w
o -3.0
Over
P erfornnnce
Palm Beach Gardens Firefighters'
Total Fixed Income
September 30, 2010
Under
P erfornnnce
F
-3.0 0.0 3.0 6.0 9.0 10.0
Barclays Capital I mermedi ate Aggregate ( %)
-W Under Performance -F Over Performance -A- Dec -2005 Sep -2010
12.50
10.00
7.50
a 5.00
2.50
a
0.00
a
2.00 4.00 6.00 8.00
Risk (Standard Deviation %)
Return
■ Total Fixed Income 8.00
0 Barclays Capital Intermediate Aggregate 7.10
- Median 8.10
10.00 12.00
Standard Deviation
4.60
2.69
4.09
0.00
25.00
a
a 50.00
a •
.A. 75.00
a
100.00
12/05 12/06
Total Period 5 -25
Count
■ Total Fixed Income 20 0 (0%
• Barclays Capital Intermediate Aggregate 20 1 (5%
9.00
7.50
6.00
e
� 4.50
L
d 3.00
a
1
•
■12/07
Tracking
Up
12/08 12/09
9/10
25- Median
Median -75
75 -95
Count
Count
Count
2 (10 %)
9 (45 %)
9 (45 %)
5 (25 %)
6 (30 %)
8 (40 %)
--- 1 1.50
14.00 1.50 3.00 4.50 6.00
Risk (Standard Deviation %)
Return
■ Total Fixed Income 6.56
• Barclays Capital Intermediate Aggregate 6.09
- Median 6.67
7.50 9.00 10.50
Standard Deviation
3.97
2.72
3.82
Page 39
THE
BOGDAHN
GROUP
Tracking
Up
Down
Sharpe
Downside
Market
Market
Alpha
IR
Beta
Error
Capture
Capture
Ratio
Risk
Total Fixed Income
1.84
116.21
129.18
-0.61
0.48
1.52
1.22
2.17
Barclays Capital Intermediate Aggregate
0.00
100.00
100.00
0.00
N/A
1.77
1.00
1.47
Historical
Tracking
Up
Down
Sharpe
Downside
Market
Market
Alpha
IR
Beta
Error
Capture
Capture
Ratio
Risk
Total Fixed Income
1.72
104.69
92.65
-0.13
0.28
1.04
1.10
1.73
Barclays Capital Intermediate Aggregate
0.00
100.00
100.00
0.00
N/A
1.15
1.00
1.25
Page 39
THE
BOGDAHN
GROUP
Palm Beach Gardens Firefighters'
Agincourt Capital Management
September 30, 2010
Financial Reconciliation Quarter
Market Value Market Value Net Capital As of Transfers Contributions Distributions Fees Expenses Income Appec./ D prec. As of
6/30/2010 9/30/2010
Agincourt Capital Management 4,432
3 - -3
49 78
4,558
Financial Reconciliation October I I' To
September 30,2010
a
5.00
0.00
Market Value
net
Capital
Market Value
As of
Contributions Distributions Fees
Expenses Income
Apprec./ Deprec.
As of
9 /30 /2009fr.msfers
9/30/2010
Agincourt Capital Management 4,161
8 -8
198 200
4,558
S130,0
15.00
10.00
S125.7
$120.0 S1 19.6
$110.0
1
;r
2
0
4
a
5.00
0.00
S125.7
$120.0 S1 19.6
$110.0
1
Oct -2009 1
2
3
4
5
Quarter
To Year
Years
Years
Years
Years
Sep -2010
■ Agincourt Capital Management
2.86 (51)
9.55 (37) 9.55 (37)
12.13 (22)
N/A
N/A
N/A
• Barclays Capital Aggregate
2.48 (85)
8.16 (89) 8.16 (89)
9.35 (88)
7.42 (75)
6.84 (73)
6.20 (74)
$100.0
9/08
3/09 9/09
3/10 9/10
Median
2.86
9.14 9.14
10.98
8.10
7.35
6.67
- Agincourt
Capital Management
- Barclays Capital Aggregate
Comparative 1
1
1
1
1
1
1
Quarter
Quarter
Quarter
Quarter
Quarter
Quarter
Ending
Ending
Ending
Ending
Ending
Ending
Jun -2010
Mar -2010
Dec -2009
Sep -2009
Jun -2009
Mar -2009
Agincourt Capital Management
3.67 (26)
2.12
(50)
0.60
(47)
4.01 (73)
2.09
(75)
0.66 (42)
Barclays Capital Aggregate
3.49 (46)
1.78
(77)
0.20
(74)
3.74 (82)
1.78
(86)
0.12 (68)
US Broad Market Core Fixed Income (SA +CF) Median
3.44
2.11
0.57
4.67
3.35
0.51
THE
BQGDAHN
GRoup
Page 40
Palm Beach Gardens Firefighters'
Garcia, Hamilton & Assoc. Fixed
September 30, 2010
Financial Reconciliation I Quarter
Market Value Market Value Net Capital As of Transfers Contributions Distributions Fees Expenses Income App rec./ D prec. As of
6/30/2010 9/30/2010
Garcia, Hamilton & Assoc. Fixed 4,721
3 -3
57 88
4,867
Financial Reconciliation October I I' To
September 30, 2010
Market Value
Market Value
As of
Net
Contributions Distributions Fees
l
Expenses Income
As of
9/30/2009
Tr nsfers
ApprecJ Deprec.
9/30/2010
Garcia, Hamilton & Assoc. Fixed 4,470 11 -11 226 171 4,867
Peer Group Analysis - US Intermediate Duration 1 Income Accounts Performance
$130.0
15.00
12.00 $122.6
$120.0
$117.8
9.00
C
Y
a6.00 $110.0-
3.00
$100.0
0.00 I I i i I i
1 Oct -2009 1 2 3 4 5
Quarter To Year Years Years Years Years
Sep -2010
■ Garcia, Hamilton & Assoc. Fixed 3.08 (22) 8.87 (28) 8.87 (28) 12.34 (12) N/A N/A N/A $90.0
• Barclays Capital Intermediate Aggregate 2.07 (89) 7.52 (78) 7.52 (78) 8.60 (85) 7.10 (73) 6.65 (73) 6.09 (74) 6/08 12/08 6/09 12/09 9/10
- Garcia, Hamilton & Assoc. Fixed
Median 2.76 8.31 8.31 9.83 7.66 7.14 6.46 - BarclaysCapitalIntermediateAggregate
Comparative Performance
1 1 1 1 1 1
Quarter Quarter Quarter Quarter Quarter Quarter
Ending Ending Ending Ending Ending Ending
Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Mar -2009
Garcia, Hamilton & Assoc. Fixed 2.24 (85) 2.01 (40) 1.28 (12) 6.07 (10) 3.10 (40) 1.27 (23)
Barclays Capital Intermediate Aggregate 2.92 (48) 1.81 (56) 0.53 (57) 3.21 (68) 1.68 (74) 0.91 (38)
US Intermediate Duration Fixed Income Accounts (SA) Median 2.90 1.84 0.59 3.57 2.63 0.74
THE
1� SOGDAHN
Page 41 ` GROUP
Palm Beach Gardens Firefighters'
American Core Realty Fund
September 30, 2010
Financial Reconciliation
I I1
Oct -2009
1
2 3
4
5
$80.0
Market Value
Quarter
To
Year
Years Years
Market Value
Years
As of
Net
Contributions Distributions
Fees
Expenses
Income
Capital
As of
6/30/2010
Transfers
App reed D prec.
9/30/2010
American Core Realty Fund
738
-
-2
N/A
9
25
769
Financial Reconciliation
October I I'
To September 30, 2010
5.84 (33)
-9.20 (19) -4.61 (N /A)
0.45 (N /A)
3.67 (N /A)
$70.0
Market Value
9/07 9/08 9/09 9/10
Median
4.62
5.51
5.51
Market Value
N/A
As of
Net Contributions Distributions
Fees
Expenses
Income
Capital
As of
9/30/2009
Transfers
Ad Deprec.
9/30/2010
American Core Realty Fund
757
-7
1 1
36
-15
769
Peer Group
' eal Estate-Open
End
Quarter
Performance
Ending
Ending
Ending
5130.0
Ending
Ending Ending
10.00
1 5.00
0.00
c
-15.00
a
-30.00
-45.00
$120.0
$110.0
$101.8
$100.0
$90.0
$84.1
1
Oct -2009
1
2 3
4
5
$80.0
Quarter
To
Year
Years Years
Years
Years
Sep -2010
■ American Core Realty Fund
4.56 (51)
2.72 (62)
2.72 (62)
-17.02 (50) -10.25 (N /A)
-4.24 (N /A)
N/A
• NCREIF Property Index
3.86 (58)
5.84 (33)
5.84 (33)
-9.20 (19) -4.61 (N /A)
0.45 (N /A)
3.67 (N /A)
$70.0
9/06
9/07 9/08 9/09 9/10
Median
4.62
5.51
5.51
-17.41 N/A
N/A
N/A
- American Core Realty Fund - NCREIF Property Index
Comparative 1
1
1
1
1
1 1
Quarter
Quarter
Quarter
Quarter
Quarter Quarter
Ending
Ending
Ending
Ending
Ending Ending
Jun -2010
Mar -2010
Dec -2009
Sep -2009
Jun -2009 Mar -2009
American Core Realty Fund
3.26
(54)
-0.67 (75)
4.23
(66)
-9.62 (69)
-7.44 (48) -13.10 (42)
NCREIF Property Index
3.31
(48)
0.76 (41)
-2.11
(19)
-3.32 (25)
-5.20 (19) -7.33 (16)
US Private Real Estate -Open End (SA +CF) Median
3.28
0.67
-3.32
-7.30
-8.01 -14.11
�P%�r
SOGDAHN
GROUP
Page 42
2.0
1.0
-2.0
b
w
-5.0
R
R;
U
Palm Beach Gardens Firefighters'
American Core Realty Fund
September 30, 2010
Over
Performance
■ Under
Performance
6
-11.0 -8.0 -5.0 -2.0
Q
NCREIF Property Index ( %)
f UndcrPcit6mNncc Sep -2009 Sep -2010
4.00
0.00
-4.00
-8.00
° -12.00
a -16.00
-20.00
Al
1.0 2.0
0.00
25.00
a
a 50.00
u
i
a
75.00
P
ai
100.00
12/05 12/06
Total Period
■ American Core Realty Fund 5
• NCREIF Property Index 20
4.00
2.00
0.00
c
-2.00
-4.00
cG
6.00
12/07 12/08 12/09 9/10
5 -25 25- Median Median -75 75 -95
Count Count Count Count
0 (0 %) 4 (80 %) 0 (0 %) 0 (0 %)
7 (35 %) 6 (30 %) 6 (30 %) 0 (0 %)
0.00 5.00
10.00 15.00
20.00
25.00
0.00 5.00
10.00
15.00
20.00
Risk (Standard Deviation %)
Risk (Standard Deviation %)
Return Standard Deviation
Return
Standard Deviation
■ American Core Realty Fund
-10.25
11.05
■ American Core Realty Fund
N/A
N/A
• NCREIF Property Index
4.61
7.96
0 NCREIF Property Index
3.67
8.04
- Median
-11.72
15.82
- Median
-0.77
12.92
Historical
Tracking
Up
Down
Sharpe
Downside
Error
Market
Market
Alpha
IR
Ratio
Beta
Risk
Capture
Capture
American Core Realty Fund 4.58
94.98
161.83
-4.36
-1.24
-1.03
1.30
t 1.53
NCREIF Property Index 0.00
100.00
100.00
0.00
N/A
-0.71
1.00
7.41
Historical
Tracking
Up
Down
Sharpe
Downside
Market
Market
Alpha
IR
Beta
Error
Capture
Capture
Ratio
Risk
American Core Realty Fund N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NCREIF Property Index 0.00
100.00
100.00
0.00
N/A
0.19
1.00
5.74
Page 43
*"►r THE
■/ BOGDAHN
GROUP
Historical
Total Fund
Palm Beach Gardens Firefighters'
Benchmark History
As of September 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 44
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
City of Palm Beach Gardens Firefighters' Pension Trust
Compliance Checklist as of 9/30/2010
1. The Total Plan return equaled or exceeded the 8.25% actuarial earnings assumption over the trailing three and five year periods.
2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three year period.
3. The Total Plan return equaled or exceeded the total plan benchmark over the trailing five year period.
4. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three year and five year periods.
5 The Total Plan standard deviation was equal to or less than 150% of the total plan benchmark over the trailing three and five year periods
1. Total domestic equity returns meet or exceed the benchmark over the trailing three year period.
2. Total domestic equity returns meet or exceed the benchmark over the trailing five year period.
3. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods.
4. The total equity allocation was less than 75% of the total plan assets at market.
5. The total equity allocation was less than 65% of the total plan assets at cost.
6. Total foreign equity was less than 10% of the total plan assets at cost. Actual 11.53%
1. Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods.
2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods.
3. The average quality of the fixed portfolio was investment grade or better.
1. Manager outperformed the index over the trailing three year period.
2. Manager outperformed the index over the trailing five year period.
3. Manager ranked within the top 50th percentile over trailing three year period.
4. Less than four consecutive quarters of under performance relative to the benchmark.
5. Three -year down - market capture ratio less than the index.
6. Standard deviation <= 150% of the index over the trailing three and five year periods.
Page 45
+� THE
B GDAHN
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.
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