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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.
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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.
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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.
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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.
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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
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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.
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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
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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
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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
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God
nps
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1-3yr WMlC
1-5yr GlMlC
1-lOyr GMC
1O*yI mlc
-1
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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
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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
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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
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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
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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