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HomeMy WebLinkAboutAgenda Fire Pension 052311THE R ESOURCE C ENTERS , LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Phone (561) 624-3277 Fax (561) 624-3278 WWW .R ESOURCE C ENTERS .COM PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND Meeting of Monday, May 23, 2011 Location: Council Chambers, Palm Beach Gardens City Hall 10500 North Military Trail Palm Beach Gardens, FL 33410 Time: 1:00 P.M. A GENDA 1. Call Meeting to Order 2. Minutes of Meeting Held March 28, 2011 3. Investment Monitor Report: Bogdahn Consulting 4. Attorney Report: Pedro Hererra • Status of Proposed Ordinance • Status IRS Determination Letter • Kevin Mitchell’s Expiration of Workers’ Compensation Offset • Application for Share Account Distribution – Terry Petruzzi 5. Administrative Report: Margie Adcock • Disbursements 6. Other Business 7. Schedule Next Meeting: Monday, July 18, 2011 at 9:00 A.M. 8. Adjourn PLEASE NOTE: Should any interested party seek to appeal any decisi on made by the Board with respect to any matter considered at such meeting or hearing, he will need a record of t he 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 a ccordance with the Americans With Disabilities Act of 1990, persons needing a special a ccommodation to participate in th is meeting should contact The Resource Centers, LLC no later t han four days prior to the meeting. PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND MINUTES OF MEETING HELD March 28, 2011 A meeting of the Board of Trustees was called to order at 9:10 A.M. at Council Chambers, Palm Beach Gardens, Florida. Those persons present were: TRUSTEES OTHERS Tom Murphy Margie Adcock, Administrator Rick Rhodes (9:17 A.M.) Pedro Herrera, Attorney Ed Morejon Troy Brown, Investment Monitor Mark Joyce Brad Armstrong, Actuary Donna Wisneski MINUTES The Board reviewed the minutes of the meeting held January 24, 2011. A motion was made, seconded and carried 4-0 to accept the minutes of the meeting held January 24, 2011. Ms. Wisneski inquired as to whether the Boar d received any response to the letter it sent to the City regarding the City’s request fo r information. Mr. Morejon stated that he received no official response to the letter. Ms. Wisneski inquired as to whether the orga nizational chart set out in the response to RFP from the Administrator was current. Ms. Adcock advised that she would provide the Board with a current organizational chart. The Board reviewed the minutes of the meeting held February 11, 2011. A motion was made, seconded and carried 4-0 to accept the minutes of the meeting held February 11, 2011. Rick Rhodes entered the meeting. ACTUARY REPORT Brad Armstrong appeared before the Board. He presented the September 30, 2010 Actuarial Valuation. He stated that the principal sources of experience gains and losses during the fiscal year from October 1, 2009 to September 30, 2010 were: a gain of approximately $1.7 million due to a .7 average salary increase versus an expected salary increase of 5.1%; a loss of approximately $1.5 million due to the rate of return on the value of assets of 3.0% versus the a ssumption of 8.25% gross; and a loss of approximately $.6 million due to 0 terminations versus the 4.1 expected. Mr. Armstrong reported that the Share Accounts tota led $5,456,393 as of September 30, 2010 with 117 members. He stated that the assets and me thods should be reviewed again prior to the September 30, 2011 Valuation. He stated that the funding value of assets is $2.2 million greater than the market value of assets as of September 30, 2010 because of the investment losses not yet recognized, noting that the smoothing is 4 years. The funded ratio increased from 59.7% to 63.2% excludi ng the Share Accounts. If the Share Accounts were included, the funded ratio increased from 63.5 to 74.3%. Mr. Armstrong discussed the contribution re quirement. He stated that the City contribution requirement for the fis cal year beginning October 1, 2011 is $3,974,487. 2 There was further discussion on the funded ra tio. Mr. Armstrong stated that the funded ratio for the Fund is probably below the me dian compared to other pension plans. However, because the cash flow obligations for the Fund are quite small, the trend has been moving favorably toward 100% in the last few years. He stated that one could not ignore cash flows when looking at the funded rati o. He stated that the Fund’s trend is in the right direction and everything is movi ng favorably in his opinion. There was discussion on the Fund’s assumed rate of re turn of 8.25%. Mr. Armstrong noted that the assumed rate of return for this Plan is a little misleading, as at first blush it appears that the Fund’s assumed rate of return is 8.25% gross. However, this Fund has at least 50 basis points of conservatism compared to those plans with a 7.5% and 8% net investment return assumption. As such, this Fund is in lin e where most of those net assumptions are. A motion was made, seconded and carried 5-0 to approve the September 30, 2010 Valuation. A motion was made, seconded and carri ed 5-0 to provide the City with a final copy of the Actuarial Valuation. There was discussion on the actuarial assump tions. Mr. Armstrong stated that with respect to mortality, there is not enough data to be credible. He would look at doing an experience review versus an experience study. If the Board would like to review the assumptions, he would do nothing more elabor ate that what he di d 3-4 years ago. It would also depend on when the Board would want to adopt the new assumptions. The Board could adopt them to take effect with this Valuation, the 2011 Valuation, or some but not all of the assumptions at the point of the Board’s choosing. If the Board would like to review the assumptions, he will draft a letter for consideration at the next meeting. There was a lengthy discussion. A motion wa s made, seconded and carried 5-0 to authorize the Actuary to perform an experien ce review of the actuarial assumptions and methods related to the Valuation not to exceed the cost of the last experience review. It was noted that Kevin Mitchell had contacted the Board advising that he was told that his disability payment would be increased after ten years due to an offset for a workers’ compensation settlement. The Board reviewed the background of the matter. It was noted that there were two letters from th e Actuary at the time dated January 28, 2000 and May 12, 2000. It is unclear whether the Board at the time of the second letter considered that letter or not, as there was no reference in any minutes from Board meetings during that time that referenced the matter. Mr. Herre ra stated that it is the Board’s role to pay benefits under the Plan. He stated that he thinks the Board’s current Actuary should calculate what the benefit should be. A mo tion was made, seconded and carried 5-0 to have the current Actuary recalculate the disability benefit due Mr. Mitchell. A motion was made, seconded and carried 5-0 to have the Chair call a special meeting if the recalculation is done before the next regular meeting. Brad Armstrong departed the meeting. INVESTMENT MONITOR REPORT Troy Brown appeared before the Board. He discussed the international exposure. He stated that the current Investment Policy Statement provides for a maximum on international exposure of 10% at cost and 15% at market. He stated that the Fund is currently out of compliance with the Investment Policy Statement as the Fund has 16% at market and the maximum in the Statement is 15%. Mr. Herrera stated that the Ordinance provides a maximum of 25% at market. Mr . Brown recommended that the Board revise the Investment Policy Statement to change the maximum to 25% at market. He stated that 3 he would remove the cost basis language all t ogether. Mr. Herrera stated that it appears to have just been an oversight. There was discussion on the use of a transiti on manager. Mr. Brown stated that the Fund does have commission recapture with ConvergEx. However, their contract for transition management is quite lengthy. As such, Mr. Bogdahn provided the Chair with a transition management agreement with GTS. The Chai r did not feel comfortable signing that agreement, as he did not feel it was within th e scope of what the Board authorized him to do from the prior meeting. There was discussion on the representatives from the Bogdahn Group that are handing the Fund’s account. It was noted that currently Mr. Bogdahn has been the contact for the Board. It was noted that Mr. Brown attended the last meeting and discussed his way of relating to the Board. The Board consensus wa s to have Mr. Brown as the representative from the Bogdahn Group handle this account going forward. There was further discussion on the Investment Policy Statement. Mr. Herrera stated that legally he does not like to see the Fund out of compliance. However, he thinks it was just an oversight. The Board changed the Ordinance with that intention. He is comfortable holding off for 31 days for the Policy to be effective. Mr. Rhodes pointed out that Mr. Bogdahn did advise the Board that they woul d need to revise the Statement after the Ordinance was revised. The Ordinance was r ecently revised and at that time the Fund was not over the 10% maximum. A motion was made, seconded and carried 5-0 to revise the Investment Policy Statement to allow for up to 25% in international at market. Mr. Brown stated that he would provide the revi sed Statement prior to the next meeting for Board review. Mr. Herrera stated that the change would become effective 31 days from today. There was further discussion on transition mana gement. Mr. Herrera stated that he has worked with GTS before and does have so me additional language he would want to include in the agreement. He has worked with ConvergEx as well. There was a lengthy discussion. A motion was made, seconded and carri ed 5-0 to negotiate an agreement with ConvergEx and forward that agreement to the Chair to execute. Mr. Brown stated that he would recommend e ngaging a secondary recapture manager, as Dana has not traded with ConvergEx at all in the past year. Rather, Dana uses CAPIS. A motion was made, seconded and carried 5-0 to au thorize the Monitor to bring back to the next meeting information for engaging CAPIS as a recapture manager. Ms. Wisneski stated that she had previ ously requested that Mr. Bogdahn provide a monthly cash balance on all accounts. Mr. Brown stated that he would provide information on the cash in the accounts at every meeting. Mr. Brown discussed Manning and Napier and noted that they have broadened their policy guidelines to increase the limit of 25% in emerging markets to 35%. Mr. Brown stated that he was fine with that. Mr. Brown provided an update on the performa nce of the Fund. The total market value of the Fund as of February 28, 2011 was $39,074,028. 4 ATTORNEY REPORT Mr. Herrera discussed the status of the proposed IRS Ordinance. He stated that he did not have any new information. Mr . Morejon stated that the City has not moved forward on it yet. Ms. Wisneski stated that she would inquire as to where it is in the process. Mr. Herrera discussed the status of the IRS De termination Letter. He stated that the IRS has approved all of the changes as timely, so there will be no penalties or fees incurred by the Fund. The Letter has now been forwarded to the Determination Letter Department within the IRS. Mr. Herrera provided a Legislative update. He discussed SB 1128 and noted that it has been amended from the language that was first introduced. ADMINISTRATIVE REPORT Ms. Adcock presented the Board with the be nefit calculation and election for Mark Sean Olsen. A motion was made, seconded and carried 5-0 to approve the benefit election. Ms. Adcock presented the list of disbur sements to be made. A motion was made, seconded and carried 5-0 to approve the disbursements listed. OTHER BUSINESS There was discussion on the payment of the Shar e Accounts to Participants that separate service and the timing of such payments. Mr . Herrera stated that the Ordinance provided that the Share Accounts “shall” be paid out which would mean that the Participant could not leave the money with the Fund. Ms. Adcock stated that this had been discussed before with Mr. Sugarman and she would review the minutes from prior meetings for that information. The matter would be discussed at the next meeting. There was discussion on the Summary Plan Description. A motion was made, seconded and carried 5-0 to authorize the Actuary to update the Summary Plan Description. There being no further business, the meeting adjourned. Respectfully submitted, Tom Murphy, Secretary RESOURCE CENTER PAGE 01/09 owo2/2o10 1x16 5616243278 THE RESOURCE CENTERS, LLC 4360 Northlakc Boulevard, Suite 206 9 Palm Beach Gardens, FL 33410 Phone (561) 624.3277 *a Fax (561) 624.3278 9 WWW.RESOLRCECENTERS.COM Vu FACSIMILE 799-4124 (9 Paves) August 2,2010 City Clerk City of Palm Beach Gardens 10500 North Military Trail Palm Beach Gardens, FL 33410 RE. Palm Beach Gardens Firefighters’ Pension Trust Fund Investment Policy Statement Dear City Clerk: As you might know, we serve as the Administrator for the Palm Beach Gardm Firefighters’ Pension Trust Fund. At the Board of Trustees m&g on July 26,2010. the Board adopted the enclosed hvestment Policy Statement. We are providing you with the Investment Policy Statmat as the Plan Sponsor as required by Section 112.661, Florida Statutes. By copy of this letter, I am also providing a copy of the Investment Policy Statement to the Department of Management Services and the Fund’s Actuary as required by Section 112.661, Florida Statutes. Thank you for your attention to this matter. Should pu have any questions regarding this, please do not hesitate to contact our office. Margar&. Ac!cock Administrator Enclosure cc: Department of Management Sgvices (with enclosure) Brad Armstrong, Actuary (with enclosure) (via fecsimilc 248 799-9020) Bob Sugarman, Board Attorney (via fawimile 30547-81 15) Joe Bogdahn, Investment Monitor (via %miL 863-292-8717) RESOURCE ENTER PAGE 02/89 I. 11. City of Palm Beach Gardens Firefighters’ Pension. Trust Fund @lan sponsor) Investment Policy Statement PURPOSE OF INVESTMENT POLICY STATEMENT The Pension Board of Trustees, as named fiduciaries, maintains that an important determinant of future investment reeumS is the expression and periodic review of the Fund’s investment objectives. To that end, the Trustees have adopted this statement of Investment Policy and direct that it apply to all assets under their control. In fulfilling their fiduciary responsibiliiy, the Trustees recognize that the Pension Plan is an essential vehicle for providing income benefits to retired participants or their beneficiaries. The Board also recognizes that the obligations of the Fund are long-term and that invwtment policy should be made with a view toward performance and rcturn over B number of years. The general investment objective. then, is to obtain a reasonable total rate of return - defined BS interest and dividend income plus realized and unrealid capital gains or losses - commensurate with the Prudent Investor Rule and any other applicable statute. Reasonable consistency of return and protection of assets against thc inroads of idation are paramount. However, the volatility of interest rates and securities markets make it necessary to judge results within the context of several years rathet than ova short paids of two years or less. The Pension Board of Trustees will employ professional Investment Management firms to invest the assets of the fund. Within the pamnetm allowed in this IPS, the Investment Managers have 111 discretion, including security selection, sector weightings and investment style. The Trustees, in performing their investment duties, shall comply with the fiduciary standards set forth in Employee Retirement Income Security Act of 1974 (ERISA) at 29 U.S.C. S. 1104(a) (1) (A) - (C). In we of conflict with other provisions of law authorizing investments, the investment and fiduciary standards set forth in this section shall prevail. TARGET ALLOCATIONS In order to provide for a diversified portfolio, the Board has engaged Investment Management firms with target investment allocations as provided for on Schedule ‘A’, attached hereto. The managers are solely responsiblc for the assets und allocation of thcir mandate only and shall abide by any subordinate investment policy assigned to the manager attached hereto. On a regular basis (at least quarterly) the Investment Consultant will review the investment portfolio for the purpose of rebalancing assets within the target investment allocations prescribed on Schedule ‘A’ and shall coordinate the overall asset allocation and &ect rebalancing of the portfolio whm necessary, Thc consultant shall also periodically review the invesment portfolio and report to the Board the style and capitalization of the individual and total portfolios. -1- RESOURCE CENTER PAGE 83/83 mm/zaio iz:i6 5616243278 111. JNVESTMJDlT PERFORMANCE OBJECTIVES The following performance measures will bc used as objectivc criteria for evaluating effectivcness of the investment managers. A. Total Fund Performance I. Thc performance of the total Fund will be rneasurcd for rolling three and five year periods. These periods are considend sufficient to accommodate the market cycles experienced with investments. The performance of this portfolio will be compared to the tetum of a portfolio comprised of 55% Russell 3000, 10% MSCI EAFE, 25% Barclays Intermediate Aggregate Bond Index, and 10% NCREIF Index. On a relative basis, it is expected that the total fund performance will be in the top 40% of the appropriate peer universe over trailing threc to five year periods. On an absolute basis. it is expected that total return of the combined equity, fixed income, and cash portfolio. should equal or exceed the higher of the actuarial camhgs assumption (8.25 %) or the Consumer Price Index plus 3% over three to five year periods. 2. 3. B. The combined cquity portion of the portfolio, defined as common stocks and convertible bonds, is expected to pdom at a rate at least equal to a weighted benchmark of 85% Russell 3000 and 15% MSCI EAFE Index. Individual components of the equity portfolio will be compared as outlined in the manager addendums. All portfolios are expected to perform in the top 40% of an appropriate peer universe over trailing three to five y~ periods. C. Fixed Income Performance The overall objective of the fixcd income portion of the portfolio is to add stability, consistency and safety to the total fund. The fixed incomc portion of the portfolio, dcfmed as fixed income and preferred stocks, is expected to perform at a rate at least equal to the Barclays Intermediate Aggregate Bond Index, and rank in the top 40% of the appropriate pen univeme over trailing three to five year periods. Individual components of the equity portfolio will be cornpared as outlined in the manager eddendums. I). Alternativw fReal Estate/Tirnber) The overall objective of the alternative portion of the portfolio is to provide an attractive level of income with minimal volatility to the fund. ms portion of the fund is expected to provide an absolute rate of rehun as benchmarked in Schedule 'A' attached hercto. -2- 08/02/2810 12: 16 5616243278 RESOURCE CENTER PAGE 04/09 IV. INVESTMENT GUIDELLWS A. Authorized Investments Pursuant to the investment powers of the Board of Trustees as set forth in the Florida Statutes and local ordinances, the Boad of Trustees sets forth the following investment guidelines and limitations, 1. Equities; a. b. Must bc traded on a national exchange or electxonic network; and Not more than 3% of the Plan’s assets, at the time of purchase, shall be invested in the common stock, capital stock or convertible stock of any one issuing company, nor shall the aggregate investment in any one issuing compmy exceed 3% of the outstanding capital stock of the company; and c. Additional criteria may be outlined in the manager’s addendum. a. All fixed income investments shall have a minimum rating of investment grade or higher as reported by a major credit rating service; and b. The value of bonds issued by any single corporation shall not exceed 3% of the total fund; and c. Additional criteria may be outlined in the manager’s addendum. a. The money market fund or STIF options provided by the Plan’s custodian; and b. Have a minimum rating of Standard & Poor’s A1 or Moody’s PI I Investments made by thc Board may include pooled funds. For purposes of this policy pooled funds may include, but are not limited to, mutual funds, commingled funds, exchange-traded funds, limited partnerships and private cquity. Pooled funds may be governed by separate documents which may includc investments not expressly permitted in this Investment Policy Statement. In the event of investment by the Plan into a pooled fund, the Board will adopt the prospectus or governing policy of that fund as the stated addendum to this Investment Policy Statement. 2. Fixed Income: 3. Money Market: 4. Pooled Funds: B. Tradmz . Parameters When feasible and appropriate. all securities shall be compctitively bid. Except as otherwise required by law, the most economically advantageous bid shall be selected. Commissions paid for purchase of securities must meet the prevailing best-execution rates. The responsibility of monitoring best price and execution of trades placed by each manager on behalf of the Plan will be governed by the Portfolio Management Agreement between the Plan and the Investment Managen. 1. Investments in corporate common stock and convertible bonds shall not exceed sixty five (65%) of Plan assets at cost or seventy-five (75%) of the Plan assets at market. 2. Foreign securities shall not cxceed ten percent (10%) at cost of Plan. For the purposes of this Invcstment Policy Statement, foreign securities m defined as bonds, stocks, or other evidences of indebtedness issued or guaranteed by a company that is not organized under the laws of the United Statcs, any state or organized territory of the United States, or the District of Columbia All equity and fixed income securities must be readily marketable. Commingled funds must be independently appraised at lcast mually. Real Estate investments cannot exceed ten percent (1 0%) of Plan assets at cost C. Limitations 3. 4. -3- 88/62/2816 12:16 5616243278 PAGE 65/89 RESOURCE CENTER D. Absolute Resmctions No investments shall be permitted in: 1. Any investment not specifically allowed as part of this policy. 2. Illiquid investments, as described in Chapter 21 5.47, Florida Statutes. 3. Direct investment in 'Scrutinized Companies' identified 111 the periodic publication by the Statc Board of Administration ("SBA list", updated on their website www.sbafla.com/fsb/ ), is prohibited. Any security identified as non-compliant on or before January 1,2010 must be divestcd by September 1,2010. Securities identified after January 1,2010, are subject to the provisions of section 1'. (c) below. However, if divestiture of business activities is accomplished and the company is subsequently removed from the SBA list, the manager can continue to hold that sccurity. Indirect investment in 'Scrutinized Companies' (through pooled funds) are governed by the provisions of Scction V (G) below. V. COMMUNICATIONS A. On a monthly basis, the custodian shall supply an accounting statement that will include a summary of all receipts and disbursements and the cost and the market value of all assets. B. On a quarterly basis, the Investment Managers shall provide a written report affirming compliance with the security restrictions of Section N (as well as any provisions outlined in the Investment Manager's addendum). In addition, the Investment Managers shall deliver a report each quarter detailing the Plan's performance, forecast of the market and economy, portfolio analysis and current ass& of the Plan. Written reports shall be delivered to the Board within 30 days of the end of the quarter. A copy of the written report shall be submitted to the person designated by the City, and shall be available for public inspection. The Investment Managers will provide immediate written and telephone notice to the Board of any significant market related or non- market rclated evcnt, specifically includnp, but not limited to, any deviation from the standards set forth in Section IV or their Investment Manager addendum. If the Fund owns investments, that complied with section IV at the time of purchase, which subsequently exceed the applicable limit or do not satisfy the applicable investment standard, such excess or noncompliant investments may be continued until it is economically feasible to dispose of such investment in accordance with the prudent man standad of cm, but no additional investment may be made unless aUthOri7Xd by law or ordinance. An action plan outlining the investment 'hold or sell' strategy shall be pvidcd to the Board immediately. D. The Invcstment Consultant shall evaluate and report on a quarterly basis the rate of rem net of investment fees and relative performance of the Plan. E. The Board will meet periodically to review the Investment Consultant performance report. The Board will mcet with the investment manager and appropriate outside consultants to discuss pefiormance results, economic outlook, investment strategy and tactics and other pertinent matters affecting the Plan on a periodic basis. F. At least annually. the Board shall provlde the Investment Managers with projected disbursement needs of the Plan so that the investment portfolio can be structured in such a manner as to provide sUacicnt liquidity to pay obligations as they come due. To this end the Investment Managers should, to the extent possible, attempt to match investment maturities with how cash needs and anticipated d-flow requirements. C. -4- 88/82/2818 12:16 5616243278 RESOURCE CENTER PAGE 86/89 G. The Investment Consultant, on behalf ofthe Plan, shdi send a letter to any pooled fund refemg the investment manager to the listing of ‘Scrutinized Companies’ by the State Board of Administration (ISBA list’), on their website www.sbaflacom/rSb/. This letter shall request that they consider removing such companies from the fund or create a similar actively managed fund having indirect holdings devoid of such companies. If the manager creates a similar fund, the Plan shall replace all applicable investments with investments in the similar fund in rn expedited timeframe consistent with prudent investing standards. For the purposes of this section, a private equity fund is deemed to be an actively managed mvestment fund. However, after sending the required correspondence, the Plan is not required to sell the pooled fund. VI. COMPLIANCE A. It is the direction of the Board that the plan assets ate held by a thttd party custodian. and that all securities phased by, and all collateral obtained by the plan shall be properly designated as Plan assets. No withdrawal of assets, in whole or in part, shall be madc from safekeeping except by an authorized member of the Board or their designee. Securities transactions been a broker-dealer and the custodian involviw purchase or sale of securities by transfer of money or securities must be made on a ”delivery vs. payment” basis to insure that the custodian will have the security M money in hand at conclusion of thc hansaction. B. The investment policy shall require all approved institutions and dealers transacting repurchase agreements to execute and perform as stated in the Mastcr Repurchase Agreement. All repurchase agreement transactions shall adhere to the requirements of thc Master Repurchase Agreement. C. At the dlration of the Board operations of thc Plan shall be reviewed by indepmdent certified public accountants as part of any financial audit periodically required Compliance with the Board’s internal controls shall be verified. These controls have been designed to prevent losses of assets that migbt mise from hud, mor, OT misrepresentation by third parties or imprudent actions by the Bomd or employees of the plan sponsor, to the extent possible D. Each member of the Board shall participate in a continuing education program relating to investments and the Board’s responsibilitics to the Plan. It is suggested that this education process begin during each Trustee’s first tenn. E. With each actuarial valuation, the Board shall determine the total expected annual rate of retm for the current year, for each of the next sevd years and for the long term thereafter. Th~s determination shall be filed promptly with the Deparbnent of Management Services, the plan’s sponsor and the consulting actuary. F. The proxy votes must be exercised for the exclusive benefit of the participants of thc Plan. Each Investment Manager shall provide the Board with a copy of their proxy voting policy for approval. On a regular basis, at least annually, each manager shall report a record of their proxy vote -5- 88/82/2818 12: 16 5616243278 RESOURCE CENTER PAGE 07/89 VI]. CRITERIA FOR INVESTMENT MANAGER REVIEW The Board wishes to adopt standards by which judgments of the ongoing performance of a portfolio manager may be made. Upon violation of any of the following, the portfolio manager will be warned of the Board's serious concern for the Fund's continued safety and performance. Violation of thmc individual guidelines shall result in a probation recommendation. Violation of five individual guidelines shan results in a termination recommendation: t 4 consecutive quarters of relative under-performance verses benchmark index t 3 and 5 year trailing returns below the 40th percentile and und&oming the index. + Downside volatility greater than index. measured by up/down market capme ratio. t Style Consistency or purity drift from the mandate. + Management turnover in portfolio team or senior management. t Investment process change, including varying the index or benchmark. + Failure to adhere to the IPS or other compliance issues. + Investigation of the firm by the SEC. t Significant asset flows into or out of the company. + Merger or salc of firm. Feeincreases. + Servicing issues - Key personal stop servicing the account without proper notification. Nothing in this rection shall limit or diminish the Board's right to terminate the manager at any time for any reason. Bcnchmark index as nferenccd above in this section shall refer to the index outlined in the investment manager addendum. WI. CRITERIA FOR INYESTiW3NT TOTAL FUND REVJEW A. B. C. XI. FLORIDA STATUTES 112,175 and APPLICABLE CITY ORDINANCES If at any time this document is found to bc in conflict with the City Ordinances or applicable Florida Statutes. the Ordinances and Statutes shall prevail. Four consecutive quarter8 of Total Fund performance below the 5Mh percenhle in Fund Four consecutive qu-s of Total Fund performance below the established benchmark Standard deviation for the Total Fund in excess of 150% of the assigned benchmark. performance rankings. X. REVIEW AND AMENDMENTS It is the Board's intention to review this document at least annually subsequent to the actuarial report and to amend this statement to reflect any changes in philosophy, objectives, or guidelines. In this regard, the Investment Manager's interest in consistency in these matters is recognized and will be taken into account when changes are being considered. If, at any time, the Investment Manager feels that the specific objcchves defined herein cannot be met, or the guidelines constrict perfonnmce, the Board should be notified in w*iting. By initialing and continuing acceptance of this Investment Policy Statement, the Investment Managers concur with the provisions of this document By signing this document, the Chairman attests that this policy has been recommended by the Investment Consultant, reviewed by the plan's legal counsel for compliance with applicable law, and approved by the Board of Trustees. -6- 08/02/2818 12: 16 5616243278 RESUrRCE CENTER PAGE 88/69 XI. FILING OF TRE INVESTMENT POLICY Upon adoption by the Board, the invcstment policy shall bc promptly filed with the Florida Department of Management Services, the City, and the plan's actuary. The effective date of the Investment Policy shall be the 3 1 days following the filing date with the City. CITY OF PALM BEACH GARDENS FIREFIGHTERS' PENSION PLAN As recommend by Investment Consultant The Bogdahn Group Dafc: ~/ZA Lo Sugarman & Susskind As approved by the Board 68/62/2618 12: 16 5616243278 * E 4, 2 c) ed 3i RESOURCE CENTER 11,111 PAGE 69/69 RESOURCE CENTER PAGE 81/09 08/02/2818 12: 16 5616243278 T)XE RESOURCE CENTERS, LLC 4360 Northlakc Boulevard, Suite 206 9 Palm Beach Gardens, FL 33410 Phone (561) 624.3277 *:* Fax (561) 624.3278 *> ww\rr.RESO~IRCEcENTE~.(~~h~ Vu FACSIMILE 799-4124 19 Paves) August 2,2010 City Clerk City of Palm Beach Gardens 10500 North Military Trail PalmBeachGardens,FL33410 RE: Palm Beach Wens FMigMas’ Pension Trust Fund Investment Policy Statement Dear City Clerk: As you might lorow, we serve as tbe Administrator for the Palm Beach Gardens Firefightas’ Pension Trust Fund. At the Board of Trustees meeting on July 26,2010. the Board adopted the enclosed Investment Policy Statement. We are providing you with the Investment Policy Statement as the Plan Sponsor as required by Section 112.661, Florida Statutes. By copy of this letter, I am also providing a copy of the Investment Policy Statement to the Department of Management Services and the Fund’s Actuary as required by Section 112.661, Florida Statutes. Thank you for your attention to this matter. Should you have any questions regarding this, please do not hesitate to contact our office. Margar&. Adma( Administrator Enclosure cc: Department of Management Scrvices (with enclosure) Brad Armstrong, Actuary (With enclosure) (via faesimilc 248 799-9020) Bob Sugarman, Board Attorney (via facsimile 30547-81 15) Joe Bogdahn, Investment Monitor (via facsimile 863-292-8717) 08/02/2818 12: 16 5616243278 PAGE 02/89 RESOURCE CENTER City of Palm Beach Gardens Firefighters' Pension Trust Fund (plan sponsor) Investment Policy Statement I. 11. PURPOSE OF INVESTMENT POLICY STATEMENT The Pension Board of Trustees, as named fiduciaries, maintains that an important determinant of future investment returns is the expression and periodic review of the Fund's investment objectives. To that end, the Trustees have adopted this statement of Investment Policy and direct that it apply to all assets under their control. In fulfilling their fiduciary responsibility, the Trustees recognize that the Pension Plan is an essential vehicle for providing income benefits to retired participants or their beneficiaries. The Board also recopinires that the obligations of the Fund are long-term and that invcstmmt policy should be madc with B view toward performance. and return over n number of years. The general investment objective, thm, is to obtain a reasonable total rate of return - defined as interest and dividend income plus realized and unrealized capital gains or losses - commensurate with the Prudent Investor Rule and any other applicable statute. Reasonable consistency of return and protection of assets against the inroads of inflation are paramount. However, the volatility of interest rates and securities markets make it necessary to judge results within the context of several years rather than over short Mods of two years or less. "he Pension Board of Trustees will employ professional Investment Management firms to invest the assets of the fund. Within the parameters allowed in this IPS, the Investment Managers have full discretion, including security selection, sector wcightings and investment style. The Trustees, in performing their investment duties, shall comply with the fiduciq standards set forth in Employee Retirement Income Security Act of 1974 (ERISA) at 29 U.S.C. s. 1104(a) (1) (A) - (C). In case of conflict with. other provisions of law authorizing investments, the investment and fiduciary standards set forth in this section shall prevail. TARGET ALLOCATIONS In order to provide for a diversified portfolio, the Board has engaged Investment Management firms with target investment allocations as provided for on Schedule 'A', attached hereto. The managers are solely responsible for the assets and allocation of their mandate only and shall abide by any subordinate investment policy assigned to the manager attached hereto. On a regular basis (at least quarterly) the Investment Consultant will review the investment portfolio for the purpose of rebalancing assets within the target investment allocations prescribed on Schedule 'A' and shall coordinate the overall asset allocation and affect rebalancing of the portfolio when necessary. Thc consultant shall also pcriodically review the investment portfolio and report to the Board thc style and capitalization of the individual and total portfolios. -1- III. INVESTMENT PERFORMANCE OBJECTIVES The following performance measures will bc used as objectivc criteria for evaluating effectivcness of the investment managers. A. Total Fund Performance 1. Thc performance of the total Fund will be measurcd for rolling three and five year periods. These periods are considered sufficient to accommodate the market cycles experienced with investments. The performance of this portfolio will be compared to the return of a portfolio comprised of 55% Russell 3000, 10% MSCI EAFE, 25% Barclays Intermediate Aggregate Bond Index, and 10% NCREIF Index. On a relative basis, it is expected that me total fund performance will be in the top 40% of the appropriate peer universe over trailing three to five year periods. On an absolute basis. it is expected that total return of the combined equity, fixed income, and cash portfolio, should equal or exceed the higher of the actuarial cdngs assumption (8.25 %) or the Consumer Price Index plus 3% over three to five year periods. 2. 3. B. Performance The combined equity portion of the portfolio, defined as common stocks and convertible bonds, is mpeaed to perform at a rate at least equal to a weighted benchmark of 85% Russell 3000 and 15% MSCI EAFE Index. Individual components of the equity porLfolio Will be compared outlined in the manager addendums. All portfolios are expected to perfom in the top 40% of an appropriate peer univcrse over trailing three to fivc year periods. C. Fixed Income Performance Thc overall objective of the fixed income potion of the portfolio is to add stability, consistency and safety to the total fund. The fixed income portion of the portfolio, dcfmed as fixed income and preferred stocks, is expected to perform at a rate at least equal to the Barclays Intermediate Aggregate Bond Index, and rank in the top 40% of the appropriate pa universe over trailing three to five year periods. Jndividual components of the equity portfolio will be compared as outlined in the manager addendums. I). Aiternntivcs meal EahteRimber) T~c overall objective of the alternative portion of the portfolio is to provide an attractive level of income with minimal volatility to the fund. 7%~ portion of the fund is expected to provide an absolute rate of rem as benchmarked in Schedule 'A' attached hereto. -2. RESOURCE CENTER PM~E 64/89 68/02/2818 12:16 5616243278 JV. INVESTMENT GUIDELINES A. Authorized Investments Pursuant to the investment powers of the Board of Trustees as set forth in the Florida Statutes and local ordinances, the Board of Trustees sets forth the following investment guidelines and limitations 1. Equities: a. b. Must be traded on a national cxchange or electronic network; and Not more than 3% of the Plan’s assets, at the time of purchase, shall be invested in the common stock, capital stock or convertible stock of any one issuing company, nor shall the aggregate investment in any one issuing company exceed 3% of the outstanding capital stock of the company; and Additional criteria may be outlined in the manager’s addendum. All fixed income investments shall have a minimum rating of investment grade or higher as reported by a major credit rating service; and The value of bonds issued by any single corporation shall not exceed 3% of the total fund; and Additional criteria may be outlined in the manager’s addendum. The moncy market fund or STIF options provided by the Plan’s custodian; and Have a minimum rating of Standard & Poor’s A1 or Moody’s PI. c. a. b. c. a. b. Investments made by thc Board may include pooled funds. For purposes of this policy pooled funds may include, but are not limited to, mutual funds, commingled funds, exchange-traded funds. limited partnerships and private quity. Pooled fund8 may bc governed by separate documents which may includc investments not expressly permitted in this Investment Policy Statement. In the event of investment by the Plan into a pooled fund, the Board will adopt the prospectus or governing policy of that fund as the statcd addendum to this Investment Policy Statement. 2. Fixed Income: 3. Moncy Market: 4. Pooled Funds: B. Tradin~~Parameters When feasible and appropriate, all securities shall be competitively bid. Except as otherwise required by law, the most economically advantageous bid shall be selected. Commissions paid for purchase of securities must meet the prevailing best-execution rates. The responsibility of monitoring best price and execution of trades placed by each manager on behalf of the Plan will be governed by the Portfolio Management Agrccment between the Plan and the Investment Manage=. C. Limitations 1. Iavesbnents in corporate common stock and convertible bonds shall not exceed sixty five (65%) of Plan assets at cost or seventy-five (75%) of thc Plan assets at market. 2. Foreign securities shall not cxceed ten percent (10%) at cost of Plan. For the purposes of this Investment Policy Statement, foreign securities are defined as bonds, stocks, or other evidences of indebtedness issued or guaranteed by a company that is not organized unda the laws of the United States, any state or organized territory of the United States. or the District of Columbia All equity and fixed income securities must be readily marketable. Camminglcd funds must be independently appraised at lcast annually. Real E&te investments cannot exceed ten percent (10%) of Plan assets at cost 3. 4. -3- RESOJRE CENTER PAGE 05m9 D. Absolute Restrictions No investmmts shall be permitted in: 1. Any investment not specifically allowed as part of this policy. 2. Illiquid investments, as descnbed in Chapter 215.47, Florida Statutes. 3. Direct investment in ‘Scrutinized Companies’ identified in the periodic publication by the State Board of Administration (“SBA list”, updated on thei~ websitc www.sbafla.com/fsb/ ), is prohibited. Any security identified as non-compliant on 01 before January 1.2010 must be divestcd by Septcmber 1,2010. Securities identified after January 1,2010, are subject to the provisions of section V. (c) below. However, if divestiture of business activities IS accomplished and the company is subsequently removed from the SBA list, the manager can continue to hold that sccurity. Indirect investment in ‘Scrutinized Companies’ (through pooled funds) are governd by the provisions of Scction V (G) below. V. COMMUNICATIONS A. On a monthly basis, the custodian shall supply an accounting statement that will imlude a summaty of all receipts and disbursements and the cost and the market value of all assets. B. On a quarterly basis, the Investment Managers shall provide a written report affirming compliance with the security restrictions of Section JV (as well as any provisions outlined in the Investment Manager’s addendum). In addition, the Investment Managers shall deliver a report each quarter detailing the Plan’s performance, forecast of the market and economy, portfolio analysis and current assets of the Plan. Written reports shall be delivered to the Board within 30 days of the end of the quarter. A copy of the written report shall be submitted to the person designated by the City, and shall be available for public inspection. The Investmrnt Managers will provide immediate witten and telephone notice to the Board of any significant m&et related or non- market rclated evcnt, specifically including, but not limited to, any deviation from the standards set forth in Section IV or their Investment Manager addendum. If the Fund owns investments, that complied with section lV at the time of purchase, which subsequcntly excced the applicable limit or do not satisfy the applicable investment standard, such excess or noncompliant investments may be continued until it is economically feasible to dispose of such investment in accordance with the prudent man standard of care, but no additional investment may be made unless authorized by law or ordinance. An action plan outlining the investment ‘hold or sell’ strategy shall be provided to the Board immediately. D. The hvcstment Consultant shall evaluate and report on a quarterly basis tho rate of return nct of investment fees and relative performance of the Plan. E. The Board will meet periodically to review the Investment Consultant performance report. The Board will meet with the investment manager and appropriate outside consultants to discuss performmce results, economic outlook, investment strategy and tactics and other pertinent matters affecting the Plan on a periodic basis. F. At least annually, the Board sM1 pronde the Investment Managers with projected disbursement needs of the Plan so that the investment portfolio can be structured in such a manner as to provide sufficient liquidity to pay obligations 88 they come due. To this end the Investment Managers should, to the extent possible, attempt to match investment maturities with known cash nwds and anticipated cash-flow requirements. C. -4- RESOURCE ENTER PAGE 66/09 68/82/2818 12:16 5616243278 G. The Investment Consultant, on behalf of the Plan, shall send a let& to any pooled fimd referring the investment manager to the listing of ‘Scrutinized Companies’ by the State Board of Administration (‘SBA list’), on their website www.sbaflacom/f$b/. This letter shall request that they consider removing such companics from the fund or create a similar actively managed fund having indirect holdings devoid of such companies. If the manager creates a similar fund, the Plan shall replace all applicable investments with investments in the similar fund in an expedited timeframe consistent with prudent investing standards. For the purposes of this section, a private equity fund is deemed to be an actively managed investment find. However, after sending the required correspondence., the Plan is not required to sell the pooled fund. VI. COMPLIANCE A. It is the direction of the Board that the plan assets are held by a third par& custodian, and that all securities purchased by, and all collateral obtained by the plan shall bc properly designated aa Plan assets. No withdrawal of assets, in whole OT in part, shall be madc from safekeeping except by an authorized member ofthe Board or their designee. Securities transactions between a broker-dealer and the custodian involving purchase or sale of securities by transfer of money or secunties must be made on a ”delivery vs. payment” basis to insure that the custodian will have the security or money in hand at conclusion of thc transaction. B. The investment policy shall require all approved institutions and dealers transacting repurchase agreements to execute and perfom as stated in the Mastcr Repurchase Agreement. All repurchase agrecment transactions shall adhere to the requiremcnts ofthc Master Repurchase Agrecment. C. At the direction of the Board operations of thc Plan shall be reviewed by indqcndent certified public accountants as part of any financial audit periodically required. Compliance with the Board’s internal controls shall be verified. These controls have been designed to prevent losses of assets that might arise from fraud, error, or misrepresentation by third parties or imprudent actions by the Board or employees of the plan sponsor, to the extent possible. D. Each member of the Board shall participate in a continuing education program relating to investments and the Board‘s responsibilitics to the Plan. it is suggested that this education process begin during each Trustee’s first term. E. With each actuarial valuation, the Board shall determine the total expected annual rate of mum for the current year, for each of the next several years and for the long term thereafter. This determination shall be filed promptly with the merit of Management Services, the plan’s sponsor and the consulting actuary. F. The proxy votes must be exercised for the exclusive benefit of the participants of the Plan. Each Investment Manager shall provide the Board with a copy of their proxy voting policy for approval. On a -gular basis, at least annually, each manager shall report a rccord of their proxy vote. -5- 08/02/2018 12: 16 5616243278 RESOURCE CENTER PAGE 07/09 VI1. CRITERIA FOR INVESTMENT MANAGER REVIEW The Board wishes to adopt standards by which judgments of the ongoing perfonnance of a portfolio manager may be made. Upon violation of my of the following, the portfolio managm will be warned of the Board’s serious concern for the Fund‘s continued safety and performance. Violation of three individual guidelines shall result in a probation recommendation. Violation of five individual guidelines shan results in a termination recommendation: + 4 consecutive quarters of relative under-perfonnance verses benchmark index + 3 and 5 year trailing returns below the 40th percentile and underperfonning the index. t Downside volatility greater than index, measured by up/down market capture ratio. t Style Consistency or purity drift from the mandate. t Management turnover in portfolio team or senior management. t Investment process change, including varying the index or benchmark. t Failure to adhere to the IPS or other compliance issues. t Investigation of the fim by the SEC. Significant asset flows into or out of the company. + Merger or salc of firm. t Fee increases. t Servicing issues - Key personal stop servicing the account without proper notification. Nothing in this section shall limit or diminish the Board’s ri&t to terminate the manager at any time for any reason. Bcnchmark index as referenced above in this section shall refer to the index outlined in the investment manager addendum. WL CRlTERJA FOR INVESWNT TOTAL FUND REWW XI. X. A. B. C. FLORIDA STATUTES 112,175 and APPLICABLE CITY ORDINANCES If at any time this document is found to be in conflict with the City Ordinances or applicable Florida Statutes, the Ordinances and Statutes sMI prevail. REVIEW AND AMENDMENTS It is the Bods intention to review this document at least annually subsequent to the actuarial report and to amend this statement to reflect any changes in philosophy, objectives, or guidelines. Zn this regard, the Investmcnt Manager’s interest in consistency in these matters is recognized and will be taken into account when changes are king considered. If, at any time, the Investment Manager feels that the specific objectives defined herein cannot be met, or the guidelines constrict performance, the Board should be notified in writhg. By initialing and continuing acceptancc of this Investment Policy Statement, the Investment Managers concur with thc provisions of this document. By signing this document, the Chairman attests that this policy has been recommended by the Investment Consultant, reviewed by the plan’s legal counsel for compliance with applicable law, and approved by the Bead of Trustees. Four consecutive quarters of Total Fund performance below the 50th percentile in Fund performance rankings. Four consecutive quarters of Total Fund performance below the established benchmark Standard deviation for the Total Fund in excess of 150% of the assigned benchmark. -6- 88/02/2818 12: 16 5616243278 RESOURCE CENTER PAGE 08/09 XI. FILING OF W WWTMENT POLICY Upon adoption by the Board, the investment policy shall be promptly filed with the Florida Department of Managemcnt Services, the City, and the plan’s actuq. The effective date of the Investment Policy shall be the 31 days following the filing date with the City. CITY OF PALM BEACH GARDENS FIREFlGHTERS’ PENSION PLAN As recommend by Investment Consultant - $50 x The Bogdahn Group Datc: 7lL‘ in Sugannan & Susskind As approved by the Board -7- b 88/82/2816 12: 16 5616243278 RESOURCE CENTER PAGE 89/89 a n I a aa Le 1 ... . .. . .. .. . . .. .. ,:... .. .,i ., . . .. City of Palm Beach Gardens Firefighters' Pension Trust Fund (plan sponsor) Investment Policy Statement I. PURPOSE OF INVESTMENT POLICY STATEMENT The Pension Board of Trustees (Board), as named fiduciaries of the Citv of Palm Beach Gardens Pension Trust Fund (Fund), maintains that an important determinant of future investment returns is the expression and periodic review of the Fund's investment objectives. To that end. the Rwte&we Board has adopted this statement of Investment Policy and direct that it apply to all assets under their control. In fulfilling their fiduciary responsibility, the TFttstees recognizes that the Pmsk&+~ is an essential vehicle for providing income benefits to retired participants or their beneficiaries. The Board also recognizes that the obligations of the Fund are long-term and that investment policy should be made with a view toward performance and return over a number of years. The general investment objective, then, is to obtain a reasonable total rate of return - defmed as interest and dividend income plus realized and unrealized capital gains or losses - commensurate with the Prudent Investor Rule and any other applicable statute. Reasonable consistency of return and protection of assets against the inroads of inflation are paramount. However, the volatility of interest rates and securities markets make it necessary to judge results within the context of several years rather than over short periods of two years or less. The PeRfieft Board &&w+ees will employ professional Investment Management fms to invest the assets of the fFund. Within the parameters allowed in this IPS, the Investment Managers have full discretion, including security selection, sector weightings and investment style. The Trustees Board, in performing their investment duties, shall comply with the fiduciary standards set forth in Employee Retirement Income Security Act of 1974 (ERISA) at 29 U.S.C. s. 1104(a) (1) (A) - (C). In case of conflict with other provisions of law authorizing investments. the investment and fiduciary standards set forth in this section shall prevail. 11. TARGET ALLOCATIONS 1 The Board has established the followine target asset allocation for the total Fund: Asset Class Tareet Range Domestic Eauity Securities 55% 45% - 65% Foreien Eauity Securities 10% 5% - 15% Comwsite Eauitv Portfolio 65% 55% - 75% Direct Real Estate 10% 5% - 15% Cash & Cash Eauivalents o"/o 0% - 5% Broad Market Fixed Income 25% 15% - 35% The Board will monitor the aggregate asset allocation of the Fund. and will take action to rebalance portfolio within the stated ranges under certain conditions at the next committee meeting. If at the end extenuating circumstances such as Dending cash flows or allocation levels viewed as temoraw, the asset allocation will be rebalanced into the allowable range. To the extent wssible. cash contributions into and withdrawals fiom the oortfolio will be executed Dmwrtionally based on the most current asset allocation available. The Board does not intend to exercise short-term changes to the target allocation. Specific assignments and additional guidelines for each investment manager will be outlined in addenda to this overall Investment Policy Statement. These sDecific investment manager addenda. which are signed and authorized by the Board, mav contain additional restrictions or more flexibility than the guidelines detailed below. The following guidelines and restrictions apply to all Fund investments. 111. INVESTMENT PERFORMANCE OBJECTIVES The following performance measures will be used as objective criteria for evaluating effectiveness of the investment managers. A. Total Fund Performance 1. The performance of the total Fund will be measured for rolling three and five year periods. These periods are considered sufficient to accommodate the market cycles experienced with investments. The performance of this portfolio will be compared to the return of a portfolio comprised of 55% Russell 3000, 10% MSCI EAFE, 25% Barclays Intermediate Aggregate Bond Index, and 10% NCREIF Index. On a relative basis, it is expected that the total fund performance will be in the top 40% of the appropriate peer universe over trailing three to five year periods. On an absolute basis, it is expected that total return of the combined equity, fixed income, and cash portfolio, should equal or exceed the higher of the actuarial earnings assumption (8.25 %) or the Consumer Price Index plus 3% over three to five year periods. 2. 3. . B. Eauitv Performance The combined equity portion of the portfolio, defined as common stocks and convertible bonds, :. .. . 3:;: is expected to perform at a rate at least equal to a weighted benchmark of 85% Russell 3000 $ x. j: { ', .. :... T...- and 15% MSCI EAFE Index. Individual components of the equity portfolio will be compared as outlined in the manager addendums. All portfolios are expected to perform in the top 40% of an appropriate peer universe over trailing three to five year periods. C. Fixed Income Performance The overall objective of the fixed income portion of the portfolio is to add stability, consistency and safety to the total fund. The fixed income portion of the portfolio, defmed as fmed income and preferred stocks, is expected to perform at a rate at least equal to the Barclays Intermediate Aggregate Bond Index, and rank in the top 40% of the appropriate peer universe over trailing three to five year periods. Individual components of the equity portfolio will be compared as outlined in the manager addendums. D. Alternatives (Real Estat-) The overall objective of the alternative portion of the portfolio is to provide an attractive level of income with minimal volatility to the fund. This portion of the fund is expected to provide e an absolute rate of return es and will be benchmarked P NCREIF index. I1 IV. INVESTMENT GUIDELINES A. Authorized hvestments Pursuant to the investment powers of the Board eHktees as set forth in the Florida Statutes and local ordinances, the Board &kwtees sets forth the following investment guidelines and limitations: 1. Equities: a. b. Must be traded on a national exchange or electronic network; and Not more than 3% of the PlttRlS Fund's assets, at the time of purchase, shall be invested in the common stock, capital stock or convertible stock of any one issuing company, nor shall the aggregate investment in any one issuing company exceed 3% of the outstanding capital stock of the company; and Additional criteria may be outlined in the manager's addendum. c. 2. Fixed Income: a. b. c. All fixed income investments shall have a minimum rating of investment grade or higher as reported by a major credit rating service; and The value of bonds issued by any single corporation shall not exceed 3% of the total fund; and Additional criteria may be outlined in the manager's addendum. 3. Money Market: a. The money market hnd or STIF options provided by the PIe& Fund's custodian; and b. Have a minimum rating of ' yAl:orR4ee$*jPC its eauivalent bv a maior credit rating service. Pooled Funds: Investments made by the Board may include pooled funds. For purposes of this policy pooled funds may include, but are not limited to, mutual funds, commingled funds, exchange-traded funds, limited partnerships and private equity. Pooled funds may be governed by separate documents which may include investments not expressly permitted in this Investment Policy Statement. In the event of investment by the PlaR into a pooled hnd, the Board will adopt the prospectus or governing policy of that fund as the stated addendum to this Investment Policy Statement. b. L. 1. 1 L. 3. 4. D. 1. ... L. 3. Trading Parameters When feasible and appropriate, all securities shall be competitively bid. Except as otherwise required by law, the most economically advantageous bid shall be selected. Commissions paid for purchase of securities must meet the prevailing best-execution rates. The responsibility of monitoring best price and execution of trades placed by each manager on behalf of the Plan Fund will be governed by the Portfolio Management Agreement between the I Fund and the Investment Managers. Investments in corporate common stock and convertible bonds shall not exceed 7 0 seventy-five (75%) of the market value of Plan Fund assets et FfleFh. Foreign securities shall not exceed €en twenty-five percent (44% 25%) of the market For the purposes of this Investment Policy statement, foreign securities are defmed as bonds, stocks, or other evidences of indebtedness issued or guaranteed by a company that is not organized under the laws of the United States, any state or organized territory of the United States, or the District of Columbia. All equity and fixed income securities must be readily marketable. Commingled funds must be independently appraised at least annually. Real Estate investments earn# shall not exceed tetl fifteen percent (44% lso/) of the market value of I4.m Fund asset-. of Ph Fund assets. Absolute Restrictions No investments shall be permitted in: Any investment not specifically allowed as part of this policy. Illiquid investments, as described in Chapter 21 5.47, Florida Statutes Direct investment in ‘Scrutinized Companies’ identified in the periodic publication by the State Board of Administration (“SBA list”, updated on their website www.sbafla.comifsb/ ), is prohibited. Any security identified as non-compliant on or before January I, 2010 must be divested by September 1, 2010. Securities identified after January 1, 2010, are subject to the provisions of section V. (c) below. However, if divestiture of business activities is accomplished and the company is subsequently removed &om the SBA list, the manager can 7 :s - . 1 ..; -. : :ia. .. ~-, . ,.,’- .I --’ fyy’ ; .-,: 2. . . . :i. . ,. .., p .:. . .. . -.. . ,. : ,’-.: ~ .. ... .. . ..z .’ .r -. .. .. .. continue to hold that security. Indirect investment in ‘Scrutinized Companies’ (through pooled funds) are governed by the provisions of Section V (G) below. V. COMMUNICATIONS A. B. ,. D. 1. F. G. On a monthly basis, the custodian shall supply an accounting statement that will include a summary of all receipts and disbursements and the cost and the market value of all assets. On a quarterly basis, the Investment Managers shall provide a written report affming compliance with the security restrictions of Section IV (as well as any provisions outlined in the lnvestment Manager’s addendum). In addition, the Investment Managers shall deliver a report each quarter detailing the PlttRlS Fund’s performance, forecast of the market and economy, portfolio analysis and current assets of the Ph Fund. Written reports shall be delivered to the Board within 30 days of the end of the quarter. A copy of the written report shall be submitted to the person designated by the City, and shall be available for public inspection. The Investment Managers will provide immediate written and telephone notice to the Board of any significant market related or non-market related event, specifically including, but not limited to, any deviation fiom the standards set forth in Section IV or their Investment Manager addendum. If the Fund owns investments, that complied with section IV at the time of purchase, which subsequently exceed the applicable limit or do not satisfy the applicable investment standard, such excess or noncompliant investments may be. continued until it is economically feasible to dispose of such investment in accordance with the prudent man standard of care, but no additional investment may be made unless authorized by law or ordinance. An action plan outlining the investment ‘hold or sell’ strategy shall be provided to the Board immediately. The Investment Consultant shall evaluate and report on a quarterly basis the rate of return net of investment fees and relative performance of the PlitR m. The Board will meet periodically to review the Investment Consultant performance report. The Board will meet with the investment manager and appropriate outside consultants to discuss performance results, economic outlook, investment strategy and tactics and other pertinent matters affecting the PlaR Fund on a periodic basis. At least annually, the Board shall provide the Investment Managers with projected disbursement needs of the P+m &d so that the investment portfolio can be structured in such a manner as to provide sufficient liquidity to pay obligations as they come due. To this end the Investment Managers should, to the extent possible, attempt to match investment maturities with known cash needs and anticipated cash-flow requirements. The Investment Consultant, on behalf of the 14aR m, shall send a letter to any pooled fund referring the investment manager to the listing of ‘Scrutinized Companies’ by the State Board of Administration (‘SBA list’), on their webste www.sbafla.com/fsb/. This letter shall request that they consider removing such companies from the fimd or create a similar actively managed fund having indirect holdings devoid of such companies. If the manager creates a similar fund, the plwt &d shall replace all applicable investments with investments in the similar hnd in an expedited timefiame consistent with prudent investing standards. For the purposes of this -5- .. . section, a private equity hnd is deemed to be an actively managed investment fund. However, after sending the required correspondence, the PleR is not required to sell the pooled fund. ::. :. .: ,.::.:: .:, :. , , .. ?:,, - ,.,..::.. .".. -;:.&&,: ,'". .. . .. COMPL~CE ' ' A. It is the direction of the Board that the plm Fund assets are held by a third party custodian, and that all securities purchased by, and all collateral obtained by the plm Fund shall be properly designated as Him Fund assets. No withdrawal of assets, in whole or in part, shall be made f?om safekeeping except by an authorized member of the Board or their designee. Securities transactions between a broker-dealer and the custodian involving purchase or sale of securities by transfer of money or securities must be made on a "delivery vs. payment" basis to insure that the custodian will have the security or money in hand at conclusion of the transaction. The investment policy shall require all approved institutions and dealers transacting repurchase agreements to execute and perform as stated in the Master Repurchase Agreement. All repurchase agreement transactions shall adhere to the requirements of the Master Repurchase Agreement. At the direction of the Board operations of the 3 Fund shall be reviewed by independent certified public accountants as part of any fmancial audit periodically required. Compliance with the Board's internal controls shall be verified. These controls have been designed to prevent losses of assets that might arise hm hud, error, or misrepresentation by third parties B. n'- .. ., i. -, . .::: or imprudent actions by the Board or employees of the plan sponsor, to the extent possible. . .. .. D. Each member of the Board shall participate in a continuing education program relating to investments and the Board's responsibilities to the PlaR Fund. It is suggested that this education process begin during each %&ee Board member's first term. With each actuarial valuation, the Board shall determine the total expected annual rate of return for the current year, for each of the next several years and for the long term thereafter. This determination shall be filed promptly with the Department of Management Services, the plan% sponsor and the consulting actuary. The proxy votes must be exercised for the exclusive benefit of the participants of the Phm Fund. Each Investment Manager shall provide the Board with a copy of their proxy voting policy for approval. On a regular basis, at least annually, each manager shall report a record of their proxy vote. 7. VII. CRITERIA FOR INVESTMENT MANAGER REVIEW The Board wishes to adopt standards by which judgments of the ongoing performance of a portfolio manager may be made. Upon violation of any of the following, the portfolio manager will be warned of the Board's serious concern for the Fund's continued safety and performance. Violation of three individual guidelines shall result in a probation recommendation. Violation of five individual guidelines shall results in a termination recommendation: + 4 consecutive quarters of relative under-performance verses benchmark index . .I - .. .. 3: ,. .. , ., , .. .. . ,.. j: a4 =, + 3 and 5 year trailing returns below the 40th percentile and underperforming the index. + Downside volatility greater than index, measured by up/down market capture ratio. + Style Consistency or purity drift from the mandate. + Management turnover in portfolio team or senior management. + Investment process change, including varying the index or benchmark. + Failure to adhere to the IPS or other compliance issues. + Investigation of the fm by the SEC. + Significant asset flows into or out of the company. + Merger or sale of fm. t Fee increases. + Servicing issues - Key personal stop servicing the account without proper notification. Nothing in this section shall limit or diminish the Board's right to terminate the manager at any time for any reason. Benchmark index as referenced above in this section shall refer to the index outlined in the investment manager addendum. VIII. CRITERIA FOR INVESTMENT TOTAL FUND REVIEW A. Four consecutive quarters of total Fund performance below the 50th percentile in Fund performance rankings. Four consecutive quarters of total Fund performance below the established benchmark Standard deviation for the total Fund in excess of 150% of the assigned benchmark. B. C. XI. X. FLORIDA STATUTES 112,175 and APPLICABLE CITY ORDINANCES If at any time this document is found to be in conflict with the City Ordinances or applicable Florida Statutes, the Ordinances and Statutes shall prevail. REVIEW AND AMENDMENTS It is the Board's intention to review this document at least annually subsequent to the actuarial report and to amend this statement to reflect any changes in philosophy, objectives, or guidelines. In this regard, the Investment Manager's interest in consistency in these matters is recognized and will be taken into account when changes are being considered. If, at any time, the Investment Manager feels that the specific objectives defined herein cannot be met, or the guidelines constrict performance, the Board should be notified in writing. By initialing and continuing acceptance of this Investment Policy Statement, the Investment Managers concur with the provisions of this document. By signing this document, the Chairman attests that this policy has been recommended by the Investment Consultant, reviewed by the ph M's legal counsel for compliance with applicable law. and approved by the Board &l+&ees. FILING OF THE INVESTMENT POLICY Upon adoption by the Board, the investment policy shall be promptly filed with the Florida Department of Management Services, the City, and the ftlwt ws actuary. The effective date of the Investment Policy shall be the 31 days following the filing date with the City. CITY OF PALM BEACH GARDENS FIREFIGHTERS’ PENSION M TRUST FUND As recommend by Investment Consultant Date: The Bogdahn Group As reviewed by Legal Counsel Sugarman & Susskind Date: As approved by the Board Date: Chairmaq Board of Trustees h i -r Y c ;;;; + m 0 0 N H z Y s 9 9 e 0 0 0 - ae 2 m Y 0- 0 3 yt (D m -. t- m -. N H s 9 0. e 0 0 0 - OD m -. -. 6 0 yt * = U w a E f B I- - x x - 111 111 2 m -. v) H E 0 m 0 w ae -. r - _. x x - F Y v) H E 8 m H x R c i: f x E 8 ae 2 ap D 0 W W W. 0 0 ti D A H N ti RO UP. C 0 M City of Palm Beach Gardens Firefighters' Pension Trust Fund Quarterly Review 1 st Quarter 20 1 1 , THE %OOL Yd.8 %OS %O't XO'Z %OO % %OO The Market Environment Domestic Equity Style Index Performance Period Ended: March 31.2011 . Value outperformed growth by a narrow margin in the large and broad capitalization ranges, while growth outpaced value in the mid and small capitalization segments of the market. While most of the capitalization equivalent style-based returns were similar for the quarter, the small cap Russell 2000 style index series favored growth over value by 2.6%. Small cap growth's outperformance versus value for the quarter was primarily a result of double-digit performance in the heavily-weighted information technology sector. Outside of small cap issues, Performance between growth and value represented a relatively narrow performance spread. . While information technology performance boosted small cap growth returns for the quarter, style-based results were dominated by strong performance in the energy sector across the capitalization spectrum. In the large and broad cap segments of the market, the energy sector represents more than 10% of both the growth and value benchmarks and was the sole sector to post double-digit performance for the quarter. . Although the quarter's style-based performance differentials were mixed between growth and value, the one-year results show that growth-based investments hold a clear advantage Over value at all capitalization ranges. This outperformance is particularly pronounced in the small cap segment where growth outperformed value by more than 10.0% for the year. The small cap growth benchmark's strength over the year is largely the result of its substantial 34.1% weight to the information technology sector and its return of 41.4%. Soune: Rusd lnveshnents Page 4 Quarter Performance - Russell Style Series 30W Value 3000 Index 3000 Growth 6.5% 6.2% low Value 1000 Index 1000Gmwth MidCap Value MidCap Index MidCap Gmwth 1.m 6.6% 1 79% 2 21 L."% 4.Wh 1c - ZOW Value 2000 Index 2000 GmwM 0.0% U.U"h 1-Year Performance - Russell Style Series 30W Value 3000 Index 3000 GmwM 192% low Value 152% 1000 Index 16 7% 1000 Gmwth 18 3% MidCap Value 22.3% Midhn Index I 2d3Y~ ---- -- MidCap Gmwth 26 6% 1 20.6% I 25.8% I 20W Value 2000 Index 2000 Gmwth 0.0." _"."," -"."," .".O% 35 THF BOGDAHN iJ GROUP The Market Environment International and Regional Market Index Performance (# Countries) Period Ended: March 31,2011 . Although the broad international indices and most of the regional benchmarks posted positive performance for the quarter, the impact of the Japanese earthquake is evident in the negative performance of the pacific region. The pacifE region is dominated by Japan, which posted a US. Dollar (USD) return of -4.9% for the quarter (-9.1% for March). In addition, Japan represented the second largest country weight in both the MSCI- EAFE index (20.3%) and the MSCI-ACWxUS index (13.8%). Although Japan posted the weakest developed market return for the quarter. Egypt, with its return of -23.2%. posted the weakest overall country performance in the MSCI-ACWxUS index. However, Egypt only represented a weight ofO.l% in this index. . International equity results for both developed and emerging international equity market indices fell short of domestic equity index performance for the quarter. The MSCI-ACWxUS index returned a solid 3.5% for the quarter while the Emerging Markets index posted lower 2.1%. Much like domestic equity markets, the performance of the MSCI-ACWxUS index was dominated by strength in the energy sector (11.3%). The regional benchmark results for the quarter also demonstrate that with the exception of the Pacific region, the USD continued its depreciation against the worlds market currencies. . Over the one-year period, emerging markets posted stronger performance (18.8%) than developed market economies (14.0%). This emerging market strength is also visible on a regional basis with both the emerging European (23.4%) and Asian (19.6%) markets outperforming their regional developed market counterparts by more than 5%. Each of the broad and regional benchmark indices illustrate the substantial depreciation of the USD relative to other currencies over the trailing 1-year period. I .US0 OLocalCurnmy Quarter Pstfonnance AC World x US (44) WORLD x US (23) WE (W Emerging MM (21) EM amp (5) EM Asia (8) EM Latin Amer (5) -l.~% 4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 1-Year Perlonnance AC World x US (44) WORLD x US (23) EAFE (22) Europ (16) Pacific (5) Emerging Mkl(21) EM Eumpe (5) EM &ia (81 14.1% EM Latin her (51 '' I -5.0% 0.056 5.0% 10.0% 15.0% 20.0% 25.0% Sourn: MSCI Capnal MarXets ex'. . - . ', . , Paee7 >.-- -. .. . C ? THE BOGDAHN lJ GROUP %Y6L I %Y9 I %8S se3w uoqequnwwmspl %s'9 Yz' L- %t9 I Anciwliael UOoBuUollll %SL %F'* %6bZ sp!aueu! j %I9 %9Z %LS as3 4uBecI %ZEL %ZO %&E Weis mwnsw %98L %I.'@ %89 Amnmas~] mumsuo3 %s'OZ %I* %0LL Sl8U)SWUl %&OZ %ti L XOEL www %tiOZ %R' L L . . .- .. .. . XLOZ XF'Z %08 m3 lRcaH %IS %IO %L6 sq&p mwnsuo3 %0* %9@ 461'01 h-!a munouo3 The Market Environment Domestic Credit Sector & Broad Market Maturity Performance Period Ended: March 31,2011 = Using the Barclays Aggregate index as a proxy for the domestic broad fixed income market, bonds returned 0.4% for the quarter. WWin the benchmark's sectors. Government securities (-0.1 %) were the only bond market segment to post a negative return for the quarter. While the quarter's rising yield environment was a hindrance to all fixed income performance, non-Government issues benefkd from increased confidence in the U.S. economic recovery, which was reflected in the narrowing spreads between Government and corporate issues. Although timing and selection are always a factor in individual portfolio results. active strategies that used their flexibility to overweight corporate andlor lower quality issues clearly had the potential to be rewarded for those active decisions. Treasury inflation protected securities (TIPS) also posted an attractive return for the quarter as investor concerns over future inflation drove prices higher. . The trailing one-year returns were solid for the various broad and sector-based bond indices. Given the steep yield wrve and growing evidence of a solid, albeit slow, economic recovery, longerdated and lower quality benchmarks posted the strongesl returns over the one-year period. AAA AA A 006 CB00 God nps Mort 1-3yr WMlC 1-5yr GlMlC 1-lOyr GMC 1O*yI mlc -1 AAA AA A tuarter Performance -% 1.4% - 3.9% \ -0.1% ~ 0.0% 13% 2.0% 3.0% 4.0% 5.0% 1 -Year Performance 6.0% I 5.8% 14.2% - 8.2% TIPS Mort 4.4% I-3yr GlMlC I-5yr OMlC I-lOyr GNlC I 8.7% I 2.9% - 1.7% m 1O+yr GlMK 8.8% -~. 0.0% 2.0% 4.0% 6.0% 0.0% 10.0% 12.0% 14.0% 16.0% Source: Bank of AmeristvMwill Lynch index System Total Fund Portfolio March 31,2011 December31,2010 : $36521.873 March 31,201 1 : $39,381,804 Allocation Segments (%) 47.2 Domestic Equity 15.5 International Equity 25.2 Domestic Fixed Income 6.4 Real Estate 5.6 Cash Equivalent Market Value 20,254,846 6,321,828 9,197.1 27 2,762,391 845.613 ($) Segments Markct Value Domestic Equity 17,253,253 International Equity 5,660,928 Domestic Fixed Income 9,213,039 Real Estate 2,338,986 Cash Equivalent 2,055,667 ($1 Page 1 I P- i Allocation (“A) 51.4 16.1 23.4 7.0 2.1 ? < BOGDAHN b GROUP 01 OE 1 'P 9L 5'8 Sll p'Z1 1.02 6'1s (%) uo!,.wlv A A ZPO'SBE 6P9'P9laI ZPL'L6S'I LOS'Z66'Z OZE'6ZE't 86L'VES'P 6PL'668'P 9PE'l16'L OS9'99S'ZI ($) wu PXJW 1 OLO'SPL ZP6'56L PVO'EPS' I PL6'199'Z P60'666'2 166'SOS'P 19S'ESB'P PPL'6 I f'l ESV'L60'Il JWA IaXJW (s) Palm Beach Gardens Firefighters' Total Fund As of March 31,2011 arch 31,2011 Domestic Equity International Equity Fkd Income Real Fstati leceipt & Disbursemen ~~~ ~ -3.00% -1.04% -2.99% 0.98% -1O.o00/. 4.Wh -4.Wh 0.Wh 4.Wh 8.Wh 10.Wh Allocation Differences March 31,2011 Market Value Allocation Target (S) (Yo) (%) International Equity 6,321,828 16.1 10.0 Fixed Income 9,434,547 24.0 25.0 Real Estate 2,762,391 7.0 10.0 Receipt & Disbursement 385,042 1.0 Total Fund 19.381.804 100.0 100.0 Domestic Equity 20,477,996 52.0 55.0 woo1 ZZfO€~Of WOO1 OZL'608'6Z WOO1 09Z'Zff%f Woo1 fL8'IZS'9f WOO1 P08'18C6f 01'10JtJOd Pans IVL WO1 U8'66I'f 6P'fI 910'1ro'p LO'S S6flPL'I PO'Z 0LOdSPL 860 ZPO'S8f iualuawmqr!a id!amx LE'P LS6'66P.I ZZ'P PPOEPS'I 90P ZPL'L65'1 aieiq lea8 puau!iuoxaiul SE'Z L81'91L LP'Z LLS'LEL PZZ SEP'69L 81'Z ZP6'S6L 962 6P9'P91'1 punj hieax a103 umuatuv - - 199 Z6C69Z'Z OY9 986'8fFZ IO'L l6f'Z9LsZ ws3 I-x inox EI'SI ZZO'819'P PBSI LEE'IZL'P 81'Pl 8L9'998'P 6Z'E I 195'E58'P PP'ZI 6PL.660 pax!d .~OSSV IB uoiptueH %pet) WPI ZKJ'PLZ'P L8PI LI91EP'P 8Z'f I Z6E'8SS'P PE'ZI 166SOS'P 15'11 86L'PES'P pax!g iuama%euelnj lei!de3 pno3u!%v fI'6Z €99%8'8 OL'Of VS6'ZS1'6 SVLZ OLO'SZP'6 f9SZ IES'6Sf6 %fZ LPf'PfP'6 a=ozsI Pans inoL (~~0x3) seasla.40 la!deN 18 %u!uuely PS9 SPE'L66'1 91'9 6El'SE8'1 S6'L O88'0fL'Z IZ8 P60'666'Z SP'S OZE'62E'E o!lojuod ieuo!iewaiui 3gx &!nba [#uq)rur)uI W'OI nswc E66 ZOO'I%'Z 1rs1 ffCfZZ'S of's1 990'199's SOY1 8Z8'1Z29 9Z'P 86P'662'1 8L'f f98'SZl'l 9Z'L ES9'Z6P'Z 6ZL PL6'199'Z 09'L LOS'Z66Z PE'IZ P65'515'9 SP'61 IS9'L6L'5 92'61 9PP'I 19'9 I 1652 LS1'606'L 56'EZ OZS'6EI'L 6E'9Z EZP'190'6 POOZ PPLIIE'L 6002 9PE'I 16'L 6E'OE ESP'L60'I I 16'IE OS999S'ZI Palm Beach Gardens Firefighters' Financial Reconciliation Quarter 1 Quarter Ending March 31,2011 I2/ ilue 10 Contributions Distributions .. Dana Core 11,097,453 540,000 929,198 12,566,650 Dana Growth 7,319,744 29,876 . . >> ..... . .'r*, , ... -29,876 591,602 7,911,346 : .; ;,,;,"<:?"';-, ::*; .:.>..:. . i ..v.;;., .,:, International Equity $661,068 360,625 - 300,135 6,321,828 RBC International Portfolio 2,999,094 180,625 149,60 1 3,329,320 Manning & Napier Overseas (EXOSX) 2,661,974 180.000 150,533 2,992,507 Total Fixed Income 9,359,551 - Agincourt Capital Management 4,505,991 Garcia, Hamilton & Assoc. Fixed 4,853,561 74,995 9,434347 28,807 4,534,798 46,188 4,899,749 Total Real Estate American Core Realty Fund Intercontinental Real Estate 2338,986 321,360 -9,059 -6,806 - 117,910 2.762591 795,942 321,360 -2,738 50,085 1,164,649 1,543,044 -9.059 -4,068 67.825 1,597,742 Receipt & Disbursement 745,070 1,084280 -1,410,728 - 33,776 197 385,042 Total Fund Portfolio 36321,873 2,336,141 -1,419,787 36,681 -33,776 2,014,036 39,381,804 ZPL'L6S'I 69 1'1 I I 890.b 91t.6- LS6'66P'I 6P9'P91'1 SE9'8L - I8L'b 09E'IZf SEP'69L 16CZ9L'Z P08'681 6P8'8- 91C6- 09fIZE Z6€'69z'Z .- 9PE'116'L 006'66Z'1 8 16'0~- 816'0P 9PP' I 19'9 OS9'99S'Z1 LZZ'S96'1 L I L'PI- L I L'PSS'I fZP' 190'6 ES'9 (11) E09 WWIoILO (ZI) P6'L 9V8 (16) POL DOZ/IO/OI (SZ) 9F6 6E'S (8L) 805 HIVIOILO (ZSl SCS OE'S (91) 9P'E )OU10/10 (zz) 96'9 PZ9 (EL) 96'5 VIN 15'9 (PL) E0'9 VIN PZ9 (EL) 96'5 (a€) EE'9 LZZ (95) 81'1 VIN PS'S (Of) 11's VIN 61'9 (58) Of's VIN PS'S (01) 11'5 (LI) 6V9 191- (95) ES'Z- VIN 66'1 (DS) 8L'I OE'O- (SL) ES'Z- (Z€) PP'I 061- (LS) ES'Z- 01'5 (21) 9L.P (El) 01'9 IS'O- (LE) 82'0- (01) 890 090 (69) 8P'O (91) S6'0 PL'S (61) 21'5 (8E) 609 01'5 (ZL) 9L'P (€1) 69'9 LP'O- (il) 88'0- (CS) zso- EE'OI (IS) EE'OI (L) LS'ZI E90 (61) ZP'O (6P) P90 090 (69) 8P'O (Lz) 080 PP'EI (01) 0601 (1) 08EZ L6Z1 (OL) 06'01 6901 (09) EE'OI (9) 96'PI SL'OI (09) EE'Ol 9L'E (85) SP'E (LZ) 89P 80'E (8E) SP'E (PL) IS'L VIN 9ZPI 109) L8'EI (8Z) 66EI 9ZPI :09) L8-EI [od WE1 VIN VIN P8'6 IPOI 61'11 OL) b8'6 <..rr i (IL) 0911 VIN (65) PO9 VIN (55) Sf61 VIN (ES) 88'02- VIN (95) SKI* VIN ZP'9- (17) 16'9- (61) 16'7- (SE) S9ZI (Zd 91'11 6L.6 (ZP) 71'01 (cz) ZI'II 6E'PI (08) SZ'ZI (01) OE'IZ 08'01 (IS) 6L'OI (€9) IZ'OI 60'12- (99) 86'12- (PZ) 11.81- 6fP1 (EL) 6921 tor) OE'IZ 0801 (E')) LZ'OI (€9) IT01 ZP'9- (05) ZP'9- @z) I6C 6L.6 (LZ) 96'01 (sz) EI'II ViN VIN V/N VIN V/N VIN WN VIN 06.P- 6SI- 16'6 9sOI Ei'6 Z8f I 91'6 Z6L 6S'El 9601 Z0.PI- OE'ZI- 98'1- 9P'O- 6fPI (69) 6SEI In<\ In... L9EI- (SS) ZOPI- I<"\ ..I..._ 000 I 65'21 8661 808 I ES.8 I EZE IP'EE- SZL 7s) IP'SI (69) 61'61 (PSI Z9'LI (69) IE'LI (OS) Li S (9) 6052- (09) P8'S VIN VIN V/N (28) IT91 kc) 867 (Cp) 96'Zf- (08) ZL'Z 00 sz 00 oz 00 SI 0001 00 5 00 0 ouor 00 0i ""01 00 0 I 0s z- -000 -os2 i - -00s 5 -0s L -0OoI 0001 os ZI 00 0 -002 i --on* - s - -009 -008 U€ 91 on I 00 0 on OUI uu 001 uo 0 W 00s- 3 non - ;t 1 005 8961 CS61 V'N "1". ~0SL -0sz 00 Of I I 60 0 V!N 00 0 00001 00 0 OP61 WI 20 0 VN uo 0 0000, 00 001 00 0 ZE asEd 18'SI 001 60 0 V;N 00 0 00001 000 aw3 IJSW Ob61 WI 20 0 V,N 00 0 00 001 w 001 00 0 (Y. ".!8.Wu P..P".IS)*'!X 00 os 00 o* 0005 00 02 L 0001 0051- 0001- :005. .a I us I 7 00i 00il 0001 00 8 uu ,I UU t 00 z 00 0 ', 007 I- 1 ~~ I I ~ IP L 00 1 5P 0- VIV 00 0 00 001 00001 00 0 mnJV 6L 01 SI I P6 L 9P f VIN VIN uqvaa w.puws "'4'11 I%Yo!*.w P'.P".lSlI'!B 00 os os LI 0011 OIZl - 0z 01 PLS 00 I I20 V:N 000 00001 00001 00 0 10 L 00 I 5P 0- 00 0 m001 00 0 1871 bP 8 V!X ZPL'L6S'I 69 1'1 I I 890.b 91t.6- LS6'66P'I 6P9'P91'1 SE9'8L - I8L'b 09E'IZf SEP'69L 16CZ9L'Z P08'681 6P8'8- 91C6- 09fIZE Z6€'69z'Z .- 9PE'116'L 006'66Z'1 8 16'0~- 816'0P 9PP' I 19'9 OS9'99S'Z1 LZZ'S96'1 L I L'PI- L I L'PSS'I fZP' 190'6 Palm Beach Gardens Firefighters' Comparative Performance Trailing As of March 31,2011 .. Total Fund Policy 4.31 (38) 11.94 (21) All Public Plans-Total Fund Median Total Fund Portfolio (Net) 10.44 .'..A ~IL.. 4.1 1 5.3--'1.94 :.. *q Total Fund Policy Total Equity Total Equity Policy Total Domestic Equity Russell 3000 US CoreILarge Cap Equity (SAKF) Median Dana Core S&P 500 US CoreLarge Cap Equity (SA+CF) Median Dana Growth Russell 1000 Growth Index 4.31 --I I 8.06 (9) 6.38 (44) 6.25 8.04 (9) 5.92 (61) 6.25 8.08 (9) 6.03 (45) I 1.94 1833 17.45 19.70 (IS) 18.71 (33) 17.81 19.64 (19) 17.31 (61) 17.8 1 19.66 (33) 18.57 (47) 14.43 (G) 13.93 (35) 13.05 13.97 I 3 9.3 ia8o 16.49 4.03 (54) 3.35 (75) 4.13 3.59 3.35 NlA NIA 4.23 (64) 4.01 (74) 4.52 3.74 4.01 NIA N!A 19.23 (13) 17.41 (22) 15.62 19.39 (13) 15.65 (49) 15.62 18.91 (39) 18.26 (42) 6.71 (5) 3.42 (40) 2.98 6.36 (7) 2.35 (67) 2.98 NIA 5.19 (39) 4.54 (21) 2.95 (56) 3.13 4.33 (24) 2.62 (70) 3.13 NtA 4.34 (45) 4.40 NI.4 NIA 4.31 osmin99 4.40 6.14 3.46 07/3ll200 7.64 (14) 07/01/200 5.82 (65) 6.20 7.52 (17) 07/01/200 5.46 (81) 6.20 23.73 (65) 06101/200 26.53 (39) IUS GrowthiLarge Cap Equity (SA+CF) Median 5.84 18.36 17.49 4.54 4.01 25.04 Returns for periods greater than 1 yr. are annualized. Rems are expressed as percentagss Told Fund Policy=55% Russell 3000.25% Barclays lntcrmediate Aggngatc, 10% MSCl EAFE. & 10% NCREIF Total Equity Policy=SS% Russell 3000; 15% MSCl EAFE Page I7 7 THE BOGDAHN Y GROLIP . mihh ES'9 (11) E09 WWIoILO (ZI) P6'L 9V8 (16) POL DOZ/IO/OI (SZ) 9F6 6E'S (8L) 805 HIVIOILO (ZSl SCS OE'S (91) 9P'E )OU10/10 (zz) 96'9 PZ9 (EL) 96'5 VIN 15'9 (PL) E0'9 VIN PZ9 (EL) 96'5 (a€) EE'9 LZZ (95) 81'1 VIN PS'S (Of) 11's VIN 61'9 (58) Of's VIN PS'S (01) 11'5 (LI) 6V9 191- (95) ES'Z- VIN 66'1 (DS) 8L'I OE'O- (SL) ES'Z- (Z€) PP'I 061- (LS) ES'Z- 01'5 (21) 9L.P (El) 01'9 IS'O- (LE) 82'0- (01) 890 090 (69) 8P'O (91) S6'0 PL'S (61) 21'5 (8E) 609 01'5 (ZL) 9L'P (€1) 69'9 LP'O- (il) 88'0- (CS) zso- EE'OI (IS) EE'OI (L) LS'ZI E90 (61) ZP'O (6P) P90 090 (69) 8P'O (Lz) 080 PP'EI (01) 0601 (1) 08EZ L6Z1 (OL) 06'01 6901 (09) EE'OI (9) 96'PI SL'OI (09) EE'Ol 9L'E (85) SP'E (LZ) 89P 80'E (8E) SP'E Palm Beach Gardens Firefighters' Comparative Performance Trailing As of March 31,2011 INCRElF Property Index .- , . -, 3.36 (83) 8.14 (69) 16.03 (89) -3.63 (7) 3.46 (7) 8.14 (69) US Private Real Estate-Open End (SA+CF) Median 3.9b3>.5' 8.79 22.18 -7.56 1.15 8.79 . . -. . . . . . .. , ..~. . ... .i. , . .. at. American Core Realty Fund 4.49 (26) 8.37 (6s) 17.00 (83) -9.01 (53) N/A -1.61 (57) 07/01/200 NCREIF Property Index 3.36 (83) 8.14 (69) 16.03 (89) -3.63 (7) 3.46 (7) 2.79 (7) US Private Real Estate-Open End (SA+CF) Median 3.98 8.79 22.18 -7.56 1.15 0.13 Intercontinental Real Estate 4.41 (27) 7.44 (76) NIA NIA NIA 7.44 (76) 10101/201 NCREIF Property Index 3.36 (83) 8.14 (69) 16.03 189) -3.63 (7) 3.46 (7) 8.14 (69) US Private Real Estateopen End (SA+CF) Median 3.98 8.79 22.18 -7.56 1.15 8.79 Returns for periods greater than 1 yr are annualized. Rems are expressed as percentages Total Fund Policy=SJ% Russell 3000.25% Barclays Intermediate Aggregate. 10% MSCl EAFE, & 10% NCREIF Tolal Equily Polic)-85% Russell 3000: 15% MSCl EAFE Page I9 7 THE < BOGDAHN i-' GROUP (PL) IS'L VIN 9ZPI 109) L8'EI (8Z) 66EI 9ZPI :09) L8-EI [od WE1 VIN VIN P8'6 IPOI 61'11 OL) b8'6 <..rr i (IL) 0911 VIN (65) PO9 VIN (55) Sf61 VIN (ES) 88'02- VIN (95) SKI* VIN ZP'9- (17) 16'9- (61) 16'7- (SE) S9ZI (Zd 91'11 6L.6 (ZP) 71'01 (cz) ZI'II 6E'PI (08) SZ'ZI (01) OE'IZ 08'01 (IS) 6L'OI (€9) IZ'OI 60'12- (99) 86'12- (PZ) 11.81- 6fP1 (EL) 6921 tor) OE'IZ 0801 (E')) LZ'OI (€9) IT01 ZP'9- (05) ZP'9- @z) I6C 6L.6 (LZ) 96'01 (sz) EI'II ViN VIN V/N VIN V/N VIN WN VIN 06.P- 6SI- 16'6 9sOI Ei'6 Z8f I 91'6 Z6L 6S'El 9601 Z0.PI- OE'ZI- 98'1- 9P'O- 6fPI (69) 6SEI In<\ In... L9EI- (SS) ZOPI- I<"\ ..I..._ 000 I Palm Beach Gardens Firefighters' Comparative Performance Fiscal Years As of March 31,2011 International Equity MSCl EAFE Index International Equity (SA+CF+MF) Median RBC International Portfolio MSCl EAFE Index International Active Value Equity (SA+CF) Median Manning & Napier Overseas (EXOSX) MSCl EAFE Index International Equity Multi-Cap Core Funds (h4F) Median Total Fired Income Barclays Capital Intermediate Aggregate US Intermediate Fixed Income (SAKF) Median Agincourt Capital Management Barclays Capital Aggregate US Broad Market Core Fixed Income (SAKF) Median Garcia, Hamilton & Assoc. Fixed Barclays Capital Intermediate Aggregate US Intermediate Fixed Income (SAKF) Median 8.14 (40) 3.71 (69) 6.40 12.31 (9) 3.71 (65) 6.10 2.52 (86) 3.71 (79) 6.78 9.20 (24) 7.52 (78) 8.28 9.55 (37) 8.16 (87) 9.15 8.87 (29) 7.52 (78) 8.28 1138 (16) 3.80 (43) 2.42 7.72 (34) 4.88 3.80 (59) NIA 3.49 3.80 (49) 15.33 (9) 11.44 9.69 (80) 14.76 (20) 12.53 10.56 (82) 15.91 (7) 11.44 9.69 (80) -30.51 (48) -30.13 (44) -30.74 -29.87 (72) -30.13 (74) -27.12 NIA -30.13 (38) -31.21 0.03 (86) 4.16 (34) 3.24 NIA 3.65 (34) 2.57 NIA 4.16 (34) 3.24 24.22 (67) 25.38 (57) 26.27 24.22 (53) 25.38 (45) 24.45 NIA 25.38 (48) 25.18 5.24 (75) 5.33 (67) 5.46 NIA 5.14 (53) 5.16 NIA 5.33 (67) 5.46 NlA 18.74 19.65 (40) NfA 19.65 (72) 20.98 NIA 19.65 (43) 18.95 3.64 W) 3.84 (58) 3.91 NIA 3.67 (75) 3.86 NIA 3.84 (58) 3.91 NlA 26.32 (48) 26.03 NfA 26.32 (63) 27.09 NIA 26.32 (43) 25.63 1.77 (76) 2.23 (41) 2.09 NIA 3.11 2.80 (80) NIA 2.23 (41) 2.09 NlA 22.52 (37) 20.64 NIA 22.52 (79) 25.42 NIA 20.37 22.52 (201 2.56 (73) 3.39 (27) 2.87 NIA 3.68 (59) 3.80 NIA 3.39 (27) 2.87 Rehrrns for penods greater than 1 yr are annualized Returns are expressed as percentages Total Fund Pollcy=SS% Russell 3000. 25% Barclays Intermediate Aggregate. 10% MSCl EAFE, & 10% NCREIF Total Equity Polrc~85% Russell 3000. 15% MSCI EAFE 1 THE fl BOGDAHN (----' GROUP Page 2 I 65'21 8661 808 I ES.8 I EZE IP'EE- SZL 7s) IP'SI (69) 61'61 (PSI Z9'LI (69) IE'LI (OS) Li S (9) 6052- (09) P8'S VIN VIN V/N (28) IT91 kc) 867 (Cp) 96'Zf- (08) ZL'Z Palm Beach Gardens Firefighters' Total Fund March 31,2011 35.00 30 00 'i.00 moo - E 1500 3 a 1000 U n no -500 I , I 1 I I Oreznio I 2 3 4 3 O".,ln TO Ye.. YI.n Y"" Ye." Yea" Mar-2011 Total Fund 5.44 151 12.16 (19) 14.43 (25) 19.11 (89) 4.03 (54) 2.67 (68) 4.23 (64) .. .. TdPolisy 4.31 (38) 11.94 (21) 13.93 (35) 23.42 (32) 3.35 (75) 2.41 (77) 4.01 (74) MCdi.n 4.11 IO 44 13.05 22.l5 413 3.19 4.52 3000 I 2000. n -10.00 -2D.00 -3o.00 Tad Fund Td Policy Md.n WZw19 occzooi Ckczw7 occ200( Ort-zws la TO TO TO TO Scpzolo stpZw19 stp2008 stp2M7 &p200( 861 (84) OW (69) -11% (29) 1167 (89) 865 (43) 932 (69) -1 86 (85) -1402 (53) I3 39 (66) 9 16 (34) 9 98 I23 -1379 14 33 8 44 Q..rkl *.mr Q..rr **. Qu.*r Q...n. E.drnl E.dU.l E.di.C EdhC hznio &*2010 J-2010 M.r-2llO Dor-fw) hdhi *Zoo) 736 (86) 4.88 (22) 3.m (60) 2.63 (86) 10.13 (13) 8 75 4 82 3 82 341 11 36 Tam1 Frnd 611 (44) Tad Polmcy All Pvblis PlmsTold Fund Mcdun 731 (15) 890 (45) -654 (77) 3 89 (47) 339 (52) 11 4n (50) 6 19 Page 23 f ? THE BOGDAHN b' GROUP I 00 sz 00 oz 00 SI 0001 00 5 00 0 ouor 00 0i ""01 00 0 I 0s z- -000 -os2 i - -00s 5 -0s L -0OoI 0001 os ZI 00 0 -002 i --on* - s - -009 -008 Palm Beach Gardens Firefighters' Dana Core March 31,2011 3000 , I 45 00 4n 00 35 on 30 00 25 no DLl I 5 on " 10 -5 00 -! I on2010 1 2 3 4 S Qu.ner T. YU. YU" Yean Yun Yun Msr-201 I 6.16 0 2.43 (261 411 114) 211 (67) 0.U 1611) 161 170) 6 15 1711 1561 11 08 2 98 094 3 I1 lO.00 -I In 0.00 - E u -10.00 : -20.00 -30.00 -moo n U Q n H 11.12 (25) -2.91 (19) -I8 II (24) 14.18 (85) 10.16 (42) 4.91 (61) 31.98 (66) 16.44 (18) 9.19 4 42 -2I.W 16.69 I I 1 I Q..W Q..lIW Q-mr Q-*r Qlu*r Qu.mr hdtg Edmg erwlig Ending hdhg Ending h2010 sp2010 1-2010 M.r.2010 h2w) sepzw9 Dm. Cart 10.73 (59) 105s ((I) -9.73 (13) 6.84 P) 4.73 (91) 14.16 (641 sap so0 10.76 (56) 11.29 (38) -11.43 (50) 1.39 (51) 6.04 (48) I5 61 (391 LIS Corr/L~ar~e Cap Egu~ty (SAXIF1 Median 10.85 11.04 -11.43 5.40 ti 00 I528 Page 25 7 THE BOGDAHN iJ GROUP U€ 91 on I 00 0 on OUI uu 001 uo 0 W 00s- 3 non - ;t 1 005 Palm Beach Gardens Firefighters' Dana Growth March 31,2011 45 00 40 00 35 00 30 00 25 00 - E 2000 E *' - I5 00 1000 40.00 3000 20.00 10.00 - 8 000 E - t -10.00 -20 00 -30.00 -40.00 1 d n n a I IM (kt-200) ~C7.008 (kt-2007 on-Iw6 OI1-1m5 Ta TO TO TO T. SIpIOII sIF-200) seF-zm *2w7 SPZWL 11 16 (52) NIA NIA NIA NIA 126s (35) -185 (36) .2088 (53) 1935 (55) 604 (591 1129 .3 01 -20 48 19 90 6 80 I I 1 I I I *..*r Qua*. Qu.r*r Qua*. Qu.ner Qua.*. Dee-1010 S*ZOIO lunlO10 Mar-1010 DU-I009 srpzon9 Eodmg Ending Ending Eadiag EndioL Endinc D.". Gram 10.71 (70) 11.68 (61) -1I.02 (33) 457 (54) 6.97 (541 12.04 (82) RimG 11.83 (49) 13.00 (36) -11 15 (551 4.65 (52) 794 (29) I307 (iIi IJS C.rm.lliLargc Cap EqmW (SAKFI Median 11.81 12 23 -1163 4 69 7 01 I4 04 Page 21 -7 THE BOGDAHN iJ GROUP 8961 CS61 V'N "1". ~0SL -0sz 00 Of I I Palm Beach Gardens Firefighters' RBC March 31,2011 50.00 60.00- rl 30.00- rn d rl 20.00- 2 3 4 5 Ye." YCO" Y..i-S YUr. I 50.00 i 40.00 30.00 J -2O.OOj -30.00 -I 1 4OW U n U -50.00 7 rnmc 0 MSCIEAFE 3.11 (65) 3.M (59) -30.13 (14) 25.38 (45) 19.6s (12) MCdisO 6.10 4.88 57.12 24.45 20.98 \ISCI EAFE lnlcmalional Activs Value Eqwwty (SAICF) Mcdm Page 29 6.65 (57) 6.81 16.53 (31) 15.15 -13.15 (84) -11.91 094 (67) 1% 2.22 (50) 2.05 19 52 I481 1939 THF < BOGDAHN iJ GROUP 60 0 V!N 00 0 00001 00 0 OP61 WI 20 0 VN uo 0 0000, 00 001 00 0 Palm Beach Gardens Firefighters' Manning & Napier March 31,2011 5000 , 40 00 30 00 R n 1000 UW lki .1 I I 1 3 4 5 YE.., YU.' Yt." Ye." NIA NIA N,* NIA il 19 (531 -2 53 156) -146 161) i.78 (16) 11.40 -1.61 .I 61 2 21 50 00 40 00 30 00 20 00 1000 - 5 000 a -1000 -20 00 1 -3000- 4000- n n ckt.1009 ckt-1008 0.1-1007 (kbZW6 TO TO TO TO SeplOlO SepZOW slplW8 Sep-1007 371 (79) 380 (49) -30 I3 (38) 2538 (48) MvaungBNapicr 252 (861 NIA NIA NIA MSCI EAFE Me&= 6 78 3 49 -31 21 25 18 OIClW5 TO SeplW6 Nl.4 1965 (43) 189s 1 I I Qm.ra Qm.. h. *.mr Qm.*, Qusrar Q"..*. e.(iig E.di.8 E.dinE KmdiOg E"diaE Ending IkClOlO slpzo10 J-1010 Mar-1010 Dee2009 ScvlW9 Manning& Kspkr 6.79 (69) 15.18 (76) -1136 (70) 1.75 (20) 4.01 (90) 2LlZ 14) hlSCl FAFE 6.65 (72) 16.53 (55) -13.75 (71) 0.94 (76) 221 (60) 1152 1261 lnirrnaiional Equit) Multi-Cap Con: Funds (MF) Median 7 19 16.94 -12.39 1.46 1.70 111 16 Page 31 C 7 THE BOGDAHN iJ GROUP ZE asEd 18'SI 001 60 0 V;N 00 0 00001 000 aw3 IJSW Ob61 WI 20 0 V,N 00 0 00 001 w 001 00 0 (Y. ".!8.Wu P..P".IS)*'!X 00 os 00 o* 0005 00 02 L 0001 0051- 0001- :005. Palm Beach Gardens Firefighters’ Agiocourt March 31,2011 1600 14 ao 1200 1000 8 00 z ao 757 (61) NIA NIA NIA 610 (17) 5.30 1851 511 174) 6.01 (74) I 74 II 62 6 I9 647 6 5, 20 aa 1750 ism 1250 moo 2.50 a.w .2.5a .s.ao -7.50 R U I I I OrelwI OrClW8 OrC2007 (xC2006 (xCZW5 TO TL? TO TO TO SFlOIO SplwI ScplW8 SpzWl SPlwL 955 (37) 1476 (20) NIA NIA NIA 8 16 (87) 1056 (82) 365 (34) 5 14 (531 367 179 9 IS 12 53 2 57 5 16 3 86 I 1 1 I I I Q...k. Qoamr @..b Qo.rI4. Q..rk, Qumrtr. hdmg Emdiq Emdig Emding Eadinl Endinc kZQI0 *lo10 Jm1010 Mar-1010 klW9 Sep1009 Aginrourl -1.13 (SI) 2.86 (51) 3.61 (17) 2.12 (50) 0.60 (41) m (73) Rarclayr Agg -1.30 (651 2.48 (83) 3.49 (46) 1.78 (78) 0.20 i7ii 174 182) 1;s Brond Market Corc Fixed lncorn~ ISAICF) Mcdian -1.15 2 86 3.44 2.11 a s7 4.67 Page 33 ? THf BOGDAHN iJ GROUP .a I 14.00 12.00 10.00 8 00 b 00 2.00 0.00 -7 00 4.00 Palm Beach Gardens Firefighten' Garcia, Hamilton March 31,2011 II 7-11 I 2 1 4 5 Vu. Vt." SIIIm Sum Sa" 6 10 (11) 94%(11) NIA NiA WA 416 (Ill 6W (75) 1 I7 (70) 513 (76) 196 (73) 1 IO 7 21 154 6 14 614 IS 00 i250 U e II so0 2 SO 0 00 -2 SO J.00 Garcia. Hamillon ~BardsylilnoFmAgg 7S2 (78) 969 (80) 416 (34) S33 (67) Medim 8 28 1144 3 24 S 4b 1 TO StPlw6 NIA 3.114 (58) 3 91 I I 1 1 1 1 Qusmr Quarler Quarler Q"."*. Qll..nr Q"..*r Ending Eadbg hdbg Edhg Ending Ending Dz&.OIO sep2010 Jut-2010 MnrlOlO Der-ZW9 Sp2009 C..Ci.. Hsmilto" 437 (8) 3.08 (23) 1.24 (Sb) 2.01 (41) 1.1 (13) h.01 1111 Barclays Intern .A= 475 (2s) 2.07 (88) 2.92 (49) 1.81 (56) 053 (57) 321 (64) US Intsmcdiate Firrd ioconx (SAtCF) Mcdian -1 I1 2.76 2.99 1.84 0.60 3 s9 Page 35 ? THE BOGDAHN iJ GROUP us I 7 00i 00il 0001 00 8 uu ,I UU t 00 z 00 0 ', 007 I- 1 ~~ I I us I 7 00i 00il 0001 00 8 uu ,I UU t 00 z 00 0 ', 007 I- 1 ~~ I I ~ IP L 00 1 5P 0- VIV 00 0 00 001 00001 00 0 mnJV 6L 01 SI I P6 L 9P f VIN VIN uqvaa w.puws "'4'11 I%Yo!*.w P'.P".lSlI'!B 00 os os LI 0011 OIZl - 0z 01 PLS 00 I I20 V:N 000 00001 00001 00 0 10 L 00 I 5P 0- 00 0 m001 00 0 1871 bP 8 V!X Palm Beach Gardens Firefighters' American Realty March 31,2011 25.00 - n 20 O( IS oc 10 oc - E 2 IO( 2 0 OC -5 00 -10 00 -1500 .20 00 H 4000 30 00 20 00 1000 0 00 -1000 - $ a 5 2 -2000 -3000 -40 00 .sow -60 00 -70 00 r-l E n OCt-Zoo) T. 2.12 (80) 5.114 (60) scF2OlO 1.25 TO -32.96 (43) SCp200) .22W (6) -3341 1 : at-I007 OlCZOM OCt-ZW5 TO T. TO scF-2008 SqCZWl s+oM 498 (33) 1631 (82) NIA 527 (26) 1131 (69) 1162 (54) 3 23 I8 53 1808 I I I 1 1 I QU."W Qm.ner Qm..m Qm.r*. Qm.. r Qm.r*r Edb ErnmbL Emdbg E.dLS E.dbS Endd*Ic DCC-2010 Sp-2010 J-2010 M~FZOIO DCC-Zoo) S~PZMW Amnrrhan Rdr* 3.71 (16) 4.56 (14) 326 (5l) 4.61 (15) 4.23 (68) -9.62 (681 NCREIF 4.62 (52) 3.86 (89) 3.31 (52) 0.76 (41) -2 11 (20) -3 32 (23, US Priralc Real EstatcOpm End (SA-CFI Mcdirn 4.71 6.30 3.37 0.67 -3 23 -7 55 Page 37 ? r BOGDAHN iJ GROUP ~ IP L 00 1 5P 0- VIV 00 0 00 001 00001 00 0 mnJV 6L 01 SI I P6 L 9P f VIN VIN uqvaa w.puws "'4'11 I%Yo!*.w P'.P".lSlI'!B 00 os os LI 0011 OIZl - 0z 01 Palm Beacb Gardens Firefigbters' Intercontinental RE Mar& 31,2011 35 00 30 00 25 00 20 00 I5 00 1000 - :: E 2 500 d - 0 00 -5 00 .,VU0 -1500 -20 00 U U 4 5 Y"" Y"rn 40.01 30.01 20.01 1o.oc 0.01 -IO.OC - ;t E 30.0c e U -30.00 -10.00 -5O.OO 40.00 -70.00 1"tamntirn"d RE NCRElF h4Sdi.n a U I I orI-zm wzm or*Mo7 wail06 orb1W TO TO TO I. TO SepZOlO +OD9 SeyZW +lW7 +lwC NIA NIA NIA NIA NIA 584 (60) -2209 (6) 527 (26) 1731 (69) 1762 (54) 7 25 -3341 3 23 I8 s3 I8 08 I I I t I I *.e Quurrr Q-rhr QU*r Q-*r Q...hr lk&OlO Se,ZOII JmZ010 M.r-7.QlO DlcZ109 %,2W 4 71 6 30 3 31 0 67 -3 23 -7 55 mimy E* Endby mir E- Ending 2.89 (94) NIA NU NIA NIA NIA 462 (12) 386 (89) 331 (52) 016 (41) .2 I1 (20) -332 I231 1nlrrrodncnnl.l RE NCRElF US Pmatc Rul EslaleQpeo End (SA+CF) Median Page 39 THE BOGDAHN iJ GROUP PLS 00 I I20 V:N 000 00001 00001 00 0 10 L 00 I 5P 0- 00 0 m001 00 0 1871 bP 8 V!X Palm Beach Gardens Firefighters' Pension Plan Compliance Checklist as of 03/31/2011 4 Fund Compliance: . .. . . . . 1, , llr .uLc.I ,,,c.,, r.,uo,-U lnVIrUru .,,- Lu.-I yuIIIIIIIIyII\ -fer the trailing three and five year periods. 2. The total plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. f f . .. . 1. Total domestic equity returns meet or exceed the benchmark over the trailing three and five year periods. f 2. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. 3. The total equity allocation was less than or equal to 75% but greater than or equal to 55% of the total fund value at market. 4. The total domestic equity allocation was less than or equal to 65% but greater than or equal to 45% of the total fund value at market. 5. The international equity allocation was less than or equal to 15% but greater than or equal to 5% of the total fund value at market. Real Estate Compliance: 1. Total Real Estate allocation was less than 15% of the total plan assets at market. f 4 f f 1. Total fixed income retums 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 total fixed income allocation was less than or equal to 35% but greater than or equal to 15% of the total fund value at market. 4. All fixed income investments had a minimum rating of investment grade or higher as determined by a major credit rating service. ? THF BOGDAHN iJ GROUP Palm Beach Gardens Firefighters' Benchmark History As of March 31,2011 S&P 500 Index Barclays Capital US. GovernmentlCredit Citigroup 3 Month T-Bill Effective Date: Apr-2003 S&P 500 Index Barclays Capital Intermediate US. GovernmentKredit Citigroup 3 Month T-Bill Effective Dnte: Jul-2005 S&P 500 Index Barclays Capital Intermediate U.S. GovernmentiCredit MSCl EAFE Citigroup 3 Month T-Bill Effective Date: Oft-2007 Russell 3000 Index Barclays Capital Intermediate Aggregate MSCI EAFE Citigroup 3 Month T-Bill Effective Date: Jul-2008 Russell 3000 Index Barclays Capital Intermediate Aggregate MSCl EAFE NCRElF Property Index 60.00 35.00 5.00 65.00 30.00 5.00 65.00 30.00 5.00 55.00 30.00 10.00 5.00 55.00 30.00 10.00 s.00 55.00 25.00 10.00 10.00 Historical Hybrid Composition Total Equity Policy I Effective Date: Jul-2008 I MSCI EAFE 15.00 Russell 3000 Index 85.00 Effective Date: May-1998 Barclays Capital US. GovernmentiCredit 100.00 I Effective Date: Apr-2003 Barclays Capital Intermediate U.S. Government/Credit Effective Date: Oct-2007 Barclays Capital Intermediate Aggregate 100.00 100.00 Page 41 7 f BOGDAHN k GROUP