HomeMy WebLinkAboutAgenda Firefighters Pension 081604..�� THE PENSION RESOURCE CENTER, LLC
4360 Norrhlake Boulevard, Suite 206 ❖ Palm Beach Gardens, FL 33410
Phone (561) 624 -3277 ❖ Fax (561) 624 -3278 ❖ w,%rw.RES0URCECENTFRS.00M
PALM BEACH GARDENS FIREFIGHTERS'
PENSION FUND
Meeting of Monday, August 16, 2004
Location_ Palm Beach Gardens Fire Rescue
10500 North Military Trail
Palm Beach Gardens, Florida 33410
(561) 799 -4300
Time: 11 :00 A.M.
AGENDA
1. Call Meeting to Order
2. Minutes of Meetings Held May 17, 2004
3. Investment Monitor: Joe Bogdahn
4 Attorney Report: Bob Sugarman
5 Administrative Report: Margie Adcock
6. Disbursements
7. Other Business
8. Schedule Next Meeting
9. Adjourn
PLEASE NOTE:
Should any interested party seek to appeal any decision made by the Board with respect to any matter
considered at such meeting or hearing, he will need a record of the proceedings, and for such purpose he
may need to Insure that a verbatim record of the proceedings is made, which record Includes the testimony
and evidence upon which the appeal Is to be based. In accordance with the Americans With Disabilities
Act of 1990, persons needing a special accommodation to participate in this meeting should contact The
Pension Resource Center. Inc. no later then four days prior to the meeting.
TRUSCO
CAPITAL
MANAGEMENT
Prepared Exclusively For:
City of Palm Beach Gardens
Defined Benefit Plan
Investment Review
Fourth Quarter 2004
Mary Durkin
Investment Manager
407 - 237 -5028
Mary. Durkin@ truscocapital.com
Period Ending T
December 31, 2004 able of Contents
Economic Overview Market Snapshot Section I
Cash Flows .. ............................... Section II
Performance and Asset Allocation
Fact Sheets
Section III
Section IV
Corporate Governance Ratings ................... Section V
Fund Attribution Summary .......................Section VI
City of Palm Beach Gardens TRUSCO CAPITAL MANAGEMENT 1 1
Period Ending
December 31, 2004 Market Snapshot: December 31, 2004
1211.92
3.4
9.2
7.2
10.9
10.9
10783.01
3.6
7.5
4.4
5.3
5.3
2175.44
3.7
14.7
6.2
8.6
8.6
1251.42
3.6
9.8
7.8
11.4
11.4
1794.19
3.9
13.8
10.0
17.2
17.2
11971.14
3.5
9.9
7.5
10.8
10.8
1515.48
4.4
15.4
15.1
20.7
20.7
582.04
3.6
8.5
3.4
6.2
6.2
625.54
3.2
9.9
11.1
15.7
15.7
326.24
3.9
9.2
3.5
6.3
6.3
405.61
3.3
10.4
12.1
16.5
16.5
578.31
3.6
7.7
1.8
3.7
3.7
696.25
3.1
9.0
10.6
13.3
13.3
270.71
4.4
12.0
8.2
14.0
14.0
256.68
3.9
12.3
11.4
18.9
18.9
724.28
4.8
13.9
9.0
15.5
15.5
881.28
3.9
13.5
15.4
23.7
23.7
217.05
2.6
14.0
10.5
22.0
22.0
245.15
1.8
12.1
12.4
23.3
23.3
2054.98
16
15.1
8.2
14.3
14.3
3492.92
2.4
13.2
13.4
22.2
22.2
575.29
3.2
7.6
3.9
4.5
4.5
663.31
4.2
12.2
9.8
16.5
16.5
328.80
2.2
13.0
11.5
22.6
22.6
2018.16
4.3
13.7
12.7
20.2
20.2
1619.34
3.0
14.1
10.8
18.3
18.3
523.09
3.4
8.3
6.0
8.3
8.3
278.90
4.8
13.5
12.2
13.3
13.3
236.99
4.0
7.9
1.9
8.2
8.2
288.63
-2.0
4.7
16.3
31.5
31.5
411.09
4.3
7.9
8.3
10.9
10.9
350.48
5.7
5.2
-0.5
1.7
1.7
289.57
2.7
10.0
9.9
18.0
18.0
329.55
2.9
13.5
2.3
2.6
2.6
183.18
1.4
8.6
12.4
13.2
13.2
129.10
2.6
8.3
15.4
20.0
20.0
141.60
2.6
12.2
19.7
24.3
24.3
City of Palm Beach Gardens
4.38
0.92
0.95
4.18
4.34
4.34
4.09
1.06
0.80
4.39
4.19
4.19
3.78
0.68
0.44
3.16
3.04
3.04
3.40
0.39
0.15
1.85
1.77
1.77
2.99
0.21
0.02
0.98
0.91
0.91
3.72
0.99
0.42
3.74
3.54
3.54
3.81
0.68
0.63
3.33
3.33
3.33
4.58
1.31
1.26
5.52
5.24
5.24
3.80
0.45
0.37
2.54
3.00
3.00
4.91
0.70
1.26
3.90
4.70
4.70
6.76
1.49
4.57
9.64
11.13
11.13
3.43
1.09
1.00
4.68
4.43
4.43
4.29
1.08
0.71
4.54
4.53
4.53
4.27
1.00
0.74
4.11
3.96
3.96
4.57
1.32
1.17
5.18
4.96
4.9E
5.07
1.62
1.77
6.30
6.21
6.21
2.23
0.21
0.46
0.83
1.30
1.30
2.58
0.16
0.39
0.82
1.25
1.25
3.06
0.21
-0.02
1.03
0.89
0.89
3.61
0.73
-0.09
2.88
2.39
2.39
4.22
1.48
0.30
5.35
4.90
4.90
4.83
3.04
2.14
9.77
8.87
8.87
2.15
2.18
1.72
1.36
0.94
0.94'
2.49
2.38
2.02
1.72
1.01
1.01
3.07
3.02
2.61
2.72
1.84
1.84
3.61
3.70
3.37
3.81
3.22
3.22
4.22
4.36
4.12
4.62
4.26
4.26
4.82
5.01
4.89
5.31
5.08
5.08
11/2004
135.92
2.3
9.4
11.7
30.0
7.8
97.59
0.3
7.6
6.5
15.7
4.6
437.50
-3.1
4.5
11.4
25.9
5.2
43.45
-11.6
-12.5
17.3
39.3
33.6
285.15
-1.5
0.0
8.0
21.0
11.1
TRUSCO CAPITAL MANAGEMENT 1 2
Period Ending I
December 31, 2004 Investment Overview
Our investing
"mantra" in 2004
was don't bet agains�
the cycle.
Economic activity
picked up in the
fourth quarter and
oil prices declined
from recent highs.
Patient investors
were rewarded with
a post - election stock
market rally that
lifted the S &P 500
fill year total return
to 10.9 %.
Bond returns
improved moderately
during the quarter,
and the Lehman
Aggregate Bond
Index finished up
4.3% for all of 2004;
a fifth consecutive
annual gain.
♦ Stock prices enjoyed a post - election rebound in the fourth quarter helped by improving job growth and lower
oil prices. The S &P 500 gained 9.2% on a total return basis during the quarter and 10.9% for all of 2004. Bond
returns also edged higher in 04 and finished the year with its fifth consecutive gain. The Lehman Aggregate
Bond Index rose 1.0% for the quarter and 4.3% in 2004. The trailing price /earnings ratio for the S &P 500 rose to
19.5X, and yields on the 10 -year Treasury note and the 10 -year A -rated corporate bond closed the year at 4.2% and
4.9 %, respectively.
♦ Cyclical economic strength was evident during the period despite ebbing fiscal and monetary support. Job
growth accelerated moderately, consumer spending improved despite higher fuel costs, and the pace of business
activity remained firm. Headline inflation moved higher but was not worrisome, and the Fed raised short-term rates for a
fourth and fifth time.
♦ While Fed tightening pushed short- and intermediate -term Treasury yields higher in the fourth quarter, longer -
term yield held relatively steady causing the yield curve to flatten further. The High Yield and Credit sectors
outperformed for the quarter and all of 2004.
♦ Signs of economic strength and a lessening of the energy price "headwind" helped stock prices break out of their ten -
month trading range. Consumer Discretionary and Technology stocks led the Q4 rally closely followed by
Utilities and Industrials. Energy and Utility stocks outperformed for the full year. Small -cap and International
(EAFE) stocks outperformed the S &P 500 in the fourth quarter and for all of 2004. The Value style outperformed
Growth for the full year, but returns were mixed in 04.
♦ We remain positive on our outlook for the economy and corporate profits, but the rate of growth in both is
likely to slow closer to historical averages due to lower levels of stimulus and more difficult comparisons,
respectively. Core inflation will likely trend moderately higher, and support the Fed's plan to raise interest rates
gradually in the months ahead. The dollar will likely remain under downward pressure.
♦ We continue to recommend a modest overweight position in stocks within current asset allocation ranges, due to
the relative attractiveness of stocks versus bonds. However, we recognize that some of the factors that have
favored equities (steep yield curve, accommodative Fed policy, and easy profit comparisons) are changing and
not as favorable. We will continue to be very price sensitive in entry and exit points and emphasize companies with
consistent growth. We will likely view any market pullback as an opportunity to build equity positions.
♦ In fixed - income portfolios, we anticipate moderately higher yields and a further flattening of the yield curve. In this
environment we will maintain a neutral duration barbell maturity structure and an overweight in Treasury
inflation - indexed securities (TIPS). However we have moved to an underweight position in Corporate bonds
(neutral on BBBs) following the sharp narrowing of credit spreads over the past two years and we will be
moving to an underweight in Mortgages.
City of Palm Beach Gardens
TRUSCO CAPITAL MANAGEMENT 1 3
Decemeriod beE31,l 004 Consumer Spending Remained Healthy in Q4
Consumer
spending
remained firm in
the fourth
quarter, helped by
stronger job
growth and
hourly wage gains
despite high oil
prices.
Spending Growth Firm in Q4...
8%
7%
6%
5%
4%
3%
2%
1%
0%
4.5%
00 01 02 03 04 05
Real Personal Consumption (Ann. Rate — Q4 Est.) Source: BEA
...Fueled by Job and Wage Growth
4.5 °%
4.000
3.500
3.000
2.50°
2.0 °0
1.500
1.000
0.5 °0
0.0 °0
00 01 02 03 04 05
Nonfann Payroll (000s) & Avg. HourlY Ea/71. (%) Source: BLS
400
300
200
100
0
-100
-200
-300
400
City of Palm Beach Gardens
* Consumer spending rebounded in the third
quarter and continued to grow at a healthy pace
in the final quarter. The pickup in spending
should help keep total GDP growth at or above
the longer term average growth in 04.
* Employment growth accelerated in the fourth
quarter, and average hourly earnings growth
increased. The combination of job gains and
hourly wage growth provided a sustained boost
to consumer spending power.
TRUSCO CAPITAL MANAULMLIN 1 1 '+
Period Ending
December 31, 2004 Policy "Tailwinds" Fad i n
Job growth and
wage gains are
critical at this
point in the
expansion, as
fiscal and
monetary stimulus
is largely over.
♦ Tax cuts and rebates provided timely
support to consumers' disposable income
during the early stages of the expansion and
helped moderate the severity of the
recession. However, those temporary boosts
are over, so disposable and total income
growth rates converged. Fundamental forces
such as wage and job growth, shown on the
previous slide, are needed to fuel future
income and spending increases.
♦ Mortgage rates remained relatively low in
2004 and helped sustained the housing
market. However, the pace of refinance
activity, which provided significant consumer
stimulus by reducing monthly house
payments and expanding home equity, fell by
over 75% from the peak in 2003.
City of Palm Beach Gardens
Job Growth Needed for Income Growth...
10%
9% Personal Inc. (YOY %)
8% — Disposable. Inc. (YOY %)
7%
6%
5%
4%
3%
2%
1%
0%
00 01 02 03 04 05
Personal & Disposable Income Growth (YOY°lo) Source: BEA
...with Tax Cuts and Refi Largely Over
n
Mortgage Rate
MBA Refi Index
a
7
N
5
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
00 01 02 03 04 05
Corn. Mortgage Rate Avg. & MBA Reft Sources: FRB, MBA
TRUSCO CAPITAL MANAGEMENT 1 5
Decemeriod beE31,i 004 Inflation Pressures Moderate but Building
Key inflation
gauges headed
moderately higher
in the fourth
quarter.
♦ "Headline" inflation, as measured by the
Consumer Price Index, rose to 31/2% on a
year- over -year basis in the fourth quarter
due primarily to higher oil prices. The Core
Personal Consumption Deflator, a favorite
of Fed policy makers, was 11/2% during the
period. These two measures are not high
by historical standards, but continued to
move up off recent lows.
♦ Productivity growth, after trending higher
for several years, has moderated, though
from a near record level. Lower
productivity growth can put upward
pressure on inflation. Also, Unit Labor
Costs, like wages, have begun to move
higher suggesting that moderate inflation
pressures are building.
City of Palm Beach Gardens
Core Inflation Edged Higher in Q4...
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
—CPI Core PCE
95 96 97 98 99 00 01 02 03 04 05
CP1 and Core Personal Consumption Deflator Source: BLS, BEA
...and Productivity Gains Continued
-
7%
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
3°/ o
Output.
Decemeriod berE31,,i 004 Energy and Healthcare Costs are H
eadwinds
Conauzon,
"visible"
inflation gauges
such as gasoline
prices acid
healthcare costs
have moved
sigh{ f icautly
higher. These
increased
expeuses
represeut a
headwiiid.for
future
consumption
spending.
Energy Hurt and Helped in 04
$60
$50
$40
$30
$20
$10
$0
95 96 97 98 99 00 01 02 03 04 05
VV77 Oil ($) .Sources: WSJ
Benefits Costs Driving Compensation
8% F— -
7%
6%
5%
4%
3%
2%
1%
95 96 97 98 99 00 01 02 03 04 05
ECI — Wages & Benefits (YO Y%) Source: BLS
City of Palm Beach Gardens
♦ The headwind of higher oil prices
intensified in the fourth quarter before easing
late in the year. WTI spot oil prices hit a high
of $55 / barrel, pushing costs higher and
curbing disposable income
*Another source of inflation has been
higher healthcare costs. While businesses
have enjoyed only moderate wage
increases, benefits costs (mostly healthcare
expense) were up roughly 7% from a year
ago.
TRUSCO CAPITAL MANAGEMENT
ndi
Decemeriod beE31, 004 I 5 Fed Rate Hikes in �04 to be Followed by More in "05
The Fed raised
short -term interest
rates two more
times in the fourth
quarter for a total
of five in 2004
Five more rate
hikes are
ccerrently priced in
by the market for
2005 as the Fed
attempts to
remove current
accommodation
and raise short -
term rates to a
'`neutral" level.
♦ The Federal Reserve first increased the
benchmark policy fed funds rate to 1'/4%
on June 30, but followed it with four more
rate hikes in the second half of the year to
2'/4 %. The Fed indicated that the current
level of interest rates was still
accommodative, as reflected in the
recovery of business credit growth.
Historically, short -term C &I credit demand
and short -term rates have tracked each
other well.
♦ Investors have priced in another five rate
hikes over the course of 2005, with most
occurring by summer. Fed officials have
hinted that the central bank wants to first
lift the fed funds rate to "neutral'. This level
has been defined by some Fed governors
as between 3% and 5 %.
City of Palm Beach Gardens
7
6
5
4
3
2
1
0
Fed Monetary "Accommodation"
Lowered as Credit Expands
Fed Funds
C &I Loan Growth
15°
10°C
5
0
-5°c,
-10°C
95 96 97 98 99 00 01 02 03 04 05
Fed Funds Rate (`7c) C &1 Loan Growth (YOY'Zo Source: FRB
Market Expects 5 More Hikes in '05
6%
5%
4%
3%
2%
1%
"NEUTRAL" FUNDS RATE
ZONE
— — FF Futures Fed Funds Target
0% 1
Q 0 0 O dLr) N N Q M 0 0� ('7
r O N Q O
N O
r r ( N
O
Fed Funds Futures (1114104) — FOW Dates Indicated Source: CBT
TRUSCO CAPITAL MANAGEMENT 1 8
Period Ending
December 31, 2004 Investors Diversifying Holdings
Moderate buying
across major
investment
categories may
reflect an active
desire by investors
to diversify
portfolios.
s Investors Pick Up Equity Buying Pace
0
40
20
0
-20
-40
-60
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05
Equity Fund Flows Source :ICI
30
20
10
0
-10
-20
...but Have Not Abandoned Bonds
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05
Bond Fund Flows Source :ICI
International Stocks More Popular
20
15
10
5
0
-5
-10
96 97 98 99 00 01 02 03 04 05
World Fund Flows Source : ICI
City of Palm Beach Gardens
• Demand for equity mutual funds in
2004, while positive, has not matched
the pace of buying in 2003. However,
there were signs of improved demand
in the fourth quarter which is expected
to carry over into Q1 2005.
♦ Purchases of bond funds improved in
recent months after falling earlier in
the year.
• The renewed interest in international
equities was a key event in 2004, and
reflects a effort by investors to
diversify portfolios.
TRUSCO CAPITAL MANAGEMENT
I
Period Ending I
December 31, 2004 Equity Markets Rally in 04
Equity markets
enjoyed a post-
election rally,
supported by
faster job growth
and more
moderate oil
prices.
While we look for
slower corporate
profits growth in
the quarters
ahead, history
suggests that the
equity markets
can move higher.
However stocks
could prove
vulnerable if
long -term yields
rise significantly,
given year -end
valuations.
♦ The S &P 500 broke out of a ten -month trading range and rallied 9.2% on a total return basis
in the final quarter to finish 2004 up 10.9 %.
♦ The economic backdrop strengthened highlighted by an acceleration in job growth, improved
consumer spending, firm business orders and production, a decline in oil prices, and
further weakening in the value of the dollar.
♦ Within this environment, Consumer Discretionary and Information Technology stocks led
during the fourth quarter, followed by Utilities and Industrials. Energy was the weakest sector in
the fourth quarter due in large part to falling oil prices, but Energy was the strongest sector for
all of 2004. Utilities and Telecommunications stocks also performed well in 2004, but the impact
on the overall S &P 500 was limited due to the small (3 %) weighting of each sector in the index.
International equities (EAFE) outperformed the S &P 500 for the quarter and the year.
♦ Smaller capitalization stocks outperformed larger capitalization stocks in the fourth quarter
and for all of 2004. For the full year, the Value style again outperformed the Growth style.
Specifically, stocks with the highest dividend yield, the lowest price /earnings ratios, and the lowest
earnings growth rates tended to outperform stocks with low yields, high P /Es, and faster earnings
growth.
♦ Year - over -year growth in S &P 500 operating profits was above the 7% long -term average
through the fourth quarter, but the pace of future profits growth is expected to slow. We
project fourth quarter earnings growth closer to 10 %, down from the 20 +% annual gains in 2003
and early 2004, with further year- over -year slowing into early 2005. We also recognize that legal
and regulatory changes being discussed and implemented are causing companies to adopt new,
more conservative reporting practices which would also affect profits growth. We believe the cost
of compliance with many of these changes is significant.
♦ The expansion in the economy is expected to support growth in profits and equity prices in
the coming quarters, though gains are likely to be restrained by the rise in bond yields
within the context of higher fourth quarter valuations. However, gains will tend to be sporadic
and volatile as the market sifts out companies with weaker business models. We will continue to
emphasize individual company fundamentals in our equity selection process, and our purchases
will be both price and timing sensitive.
City of Palm Beach Gardens
TRUSCO CAPITAL MANAGEMENT 1 10
Period Ending
December 31, 2004 Stock Market Rallied in Q4
Tech & Consumer Disc. Led in Q4
35
30
25
20
15
10
5
0
-5
luliujL111
use 5tpl Engy Fn Hth
Ind Tech Mat Tel lltil
■ 3 -Mos. 13.5 7.9 4.7 7.9 5.2
10.0 13.5 8.6 8.3 12.2
■ 6 Mos. 12.2 1.9 16.3 8.3 -0.5
9.9 2.3 12.4 15.4 19.7
■ 1 -Yr. 13.3 8.2 31.5 10.9 1.7
18.0 2.6 13.2 20.0 24.3
Sector Performance S &P 500
Source: FactSet
Corporate Profits Growth
Slower in '05
40%
9.8
30%
20%
10%
0%
-10%
-20%
-30% ' 1
89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05
S &P Op. Earnings ( YOY%) - Olive is est. Source: Trusco Capital
Valuations Raised by 04 Rally
30
25
rnx
15
Trailing PE - Forward PE
10 ' 1
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05
Trailing & Fornrard PIE Ratio Source: Baseline
Smaller Beat Larger in 04 and '04
25
20
15
10 ■
5
0
3 -Mos.
6 Mos.
YTD
1 -Yr.
• S &P 100 7.6
3.9
4.5
4.5
• S &P 500 9.2
7.2
10.9
10.9
• MidCap 12.2
9.8
16.5
16.5
SmlCap 13.0
11.5
22.6
22.6
Capitalization Performance
Source: S &P
City of Palm Beach Gardens TRUSCO CAPITAL MANAGEMENT 11
Period Ending I
December 31, 2004 Fixed Income Markets Summary
Bonds gained in
the fourth quarter
and the Lehman
Aggregate Bond
Index finished
higher for a fifth
consecutive year.
The yield curve
flattened due to
two more Fed rate
hikes, and credit
spreads narrowed
to historically low
levels.
We will emphasize
a barbell maturity
structure, an
overweight
position in TIPS,
and an
underweight in
Corporates and
Mortgages.
♦ The Lehman Aggregate Bond Index added 0.95% on a total return basis in the fourth,
despite evidence of a stronger economy and two more quarter -point Fed rate hikes. The
index finished 2004 with a 4.34% return — a fifth consecutive annual gain.
♦ Longer -term Treasury yields inched higher during the quarter but short- and intermediate -term
yields continued to rise significantly, causing the yield curve to flatten. The yield on the 10 -year
note closed 2004 at 4.22% compared with 4.26% at the end of 2003, while the 2 -year note finished
at 3.07% compared to 1.84% a year earlier. The yield curve flattened by 36 basis points in 04 and
127 basis points for the full year.
♦ Credit spreads narrowed somewhat further in the fourth quarter, and finished lower for
2004. The spread between 10 -year "A" rated corporate bonds and 10 -year Treasury securities
closed at 71 basis points, the lowest level since 1998 and well below the 98 basis point average of
the past 15 years. Spreads narrowed across the credit spectrum, but still offer some opportunities
in the BBB sector within the investment grade area.
♦ The Credit and High Yield sectors again outperformed the Lehman Aggregate in the fourth
quarter, and were joined by Mortgages. Long maturities outperformed shorter maturities,
and lower quality credits outperformed higher quality on signs of improving growth and
lower default risk.
♦ We believe that the secular decline in yields that began in 1981 is over, but a sharp rise
from this point is unlikely over the near -term given the Fed's stated policy approach to a
"measured" rise in short -term rates and our expectations that economic growth will moderate. We
are maintaining portfolio durations neutral relative to benchmarks, but have a more
defensive portfolio structure, emphasizing:
• A barbell maturity structure (shorter -term and longer -term securities) which will benefit from a
flatter yield curve due to rising short -term rates.
• Sectors that perform well in rising inflation environments such as Treasury inflation- indexed
securities due to increased demand.
• We have moved to an underweight position in Corporate bonds (neutral weighting in BBBs)
given the relatively narrow credit spreads, and we will move to an underweight position in
Mortgages.
City of Palm Beach Gardens TRUSCO CAPITAL MANAGEMENT
12
Period Ending Rate Hikes Flatten Curve / Spreads N December 31, 2004 arrow
Long- inaturity
bond yields held
relatively steady
Point-to-point in
the final quarter
and
outperformed,
despite two more
Fed rate hikes.
The yield curve
(Ills -2s) flattened
another 36 basis
points during the
quarter and 127
basis points for all
of 2004. Credit
spreads narrowed
somewhat further
in Q4, allowing
credit- sensitive
sectors (with
higher yields) to
outperform.
Curve Flattened on Fed Rate Hikes
6.0
5.0
4.0
3.0
2.0
1.0
0.0
-12/31/2004
9/30/2004
- 12/31/2003
0 5 10 15 20 25 30
Treastay Yield Curve Source: FartSet
Flatter Curve Benefited Long Maturities
12.0
10.0
8.0
6.0
4.0
2.0
-2.0
sFVK)
b
2Yr
5 Y
10 Y
30 Y
■ 3 -Mos. 0.46
0.39
-0.02
-0.09
0.30
2.14
■ 6 Ws. 0.83
0.82
1.03
2.88
5.35
9.77
■ 1-Yr. 1.30
1.25
0.89
2.39
4.90
8.87
Treasun, Returns
4.21
3.04
Source :Lehnhan
Brothers
City of Palm Beach Gardens
Credit Spreads Continued to Narrow
200
150
100
50 1 1
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05
10 -Yr. "A " -Rated Cote. vs. Treasury Source: Merrill LYnch
Credit / High Yield Led in 2004
12.0
10.0
8.0
6.0
4.0
2.0
0.0
Agg
UUr
i U/C
Tr
Agy
Cred
ABS
MBS Wd Min
■ 3 -Nbs. 0.95
0.81
0.43
0.42
0.62
1.27
0.37
1.26 4.58 1.00
■ 6 Mos. 4.18
4.40
3.14
3.75
3.32
5.52
2.54
3.90 9.64 4.68
■ 1-Yr. 4.34
4.21
3.04
3.54
3.32
5.25
3.01
4.70 11.14 4.43
Aggregate & Sector Returns
Source: Lehman Brothers
TRUSCO CAPITAL MANAGEMENT 113
Period Ending
December 31, 2004
Past performance is not indicative of future results. Performance returns are shown gross of
fees. Comments and projections are based on information available at the time of writing
and believed to be accurate, are for informational purposes only, and may not be relied upon
for future investing.
City of Palm Beach Gardens
TRUSCO CAPITAL MANAGEMENT 1 14
Period Ending I
December 31, 2004 Account Activity Summary
Past Performance is not indicative of future results.
City of Palm Beach Gardens TRUSCO CAPITAL MANAGEMENT 1 15
Period Ending
December 31, 2004 Performance Comparisons
Past Performance is not indicative of future results. Returns are shown gross of fees.
City of Palm Beach Gardens TRUSCO CAPITAL MANAGEMENT 1 16
3 Years
5 Years
10 Years
ITD 132 Mths.
Quarter
12 Months
Annualized
Annualized
Annualized
Annualized
Total Portfolio
6.37%
9.15%
4.62%
4.37%
10.35%
8.96%
Total Equity
9.97%
12.27%
4.05%
2.83%
12.04%
10.48%
S &P 500 Index
9.23%
10.88%
3.59%
-2.30%
12.07%
11.05%
Total Fixed Income
0.91%
3.91%
5.65%
6.78%
7.28%
N/A
Lehman Govt Credit
0.80%
4.19%
6.59%
8.00%
7.80%
6.72%
Lehman Aggregate Bond
0.95%
4.34%
6.19%
7.71%
7.72%
6.71%
Past Performance is not indicative of future results. Returns are shown gross of fees.
City of Palm Beach Gardens TRUSCO CAPITAL MANAGEMENT 1 16
Period Ending I
December 31, 2004 Portfolio Composition
EqU
61 .5C
STI Classic International Equity Index
SunTrust Retirement Mid Cap Equity
SunTrust Retirement Small Cap Growth
SunTrust Retirement High Grade Relative Value
SunTrust Retirement High Grade Growth
Total Equity
SunTrust Retirement High Grade Bond
SunTrust Retirement High Grade Intermediate Bond
Total Fixed
Money Market
Total Cash
Portfolio Holdings are as of 12131104 and ma -Y change at anY time and without notice.
$
$
$
$
Fixed
37.50%
Cash
1.000/0
141,802.86
58,022.46
172,545.34
593,330.23
759,030.45
1,724,731.34
527,396.70
523,850.12
1,051,246.82
28,659.08
28.6r
5.1%
2.1%
6.2%
21.2%
27.1%
61.5%
18.8%
18.7%
37.5%
1.0%
City of Palm Beach Gardens TRUSCO CAPITAL MANAGEMENT 17
DePembeeriod 004 I STI Classic International Equity Index Fund
cr 31,
Pent per /irnnance is not
indicative o/ /inure t•esvdls.
Per/oratance rehu-its are
shown net o/ fi•e.s. .fore
current investment
per(orutanee return
in urination may be obtained
b calling 1- 800 -874- 4770.
option i, or vi.siling flit, ,STI
Classic Funds web.site at
rrn'H.s'tirlrtssie funds.cunt.
Portfolio holdings and
characterislics are its u/'
12131104 and un{Y change at
an-v time and rviNtuut notice.
Equity Style
Value Blend Growth
Large
Medium
Small
Investment Category
Foreign Stock
Security
%Equity
ENI S.p.A.
1.7%
Siemens AG
1.6%
Total S.A.
1.6%
Deutsche Telekom AG 1.5%
Toyota Motor Corp 1.5%
Characteristic
Dividend Yield (Current)
EPS Growth (5 yr est.)
Market Capitalization ($bil)
Price -to -Book
P/E (12 months trailing)
Return on Equity
Fund Description
1.4%
Fund Philosophy
..
Ticker:
SIEIX
The Fund seeks to provide
Cash: 1.0%
Expense Ratio:
0.81%
diversification and capital
Non -U.S. Stocks: 99.0%
appreciation by investing in
U.S. Stocks: 0.0%
NAV:
$12.96
securities of companies
Inception
Assets (mil):
$461.80
headquartered or based in
Year
Years
Years
foreign countries to replicate
U.S Stocks Non -U S Stocks
00% 990 e
Fund
16.40o
the Morgan Stanley EAFE
12.4%
-2.1%
7.0%
GDP Index.
Industry Concentration
Cash
101.
Security %Equity
EON AG
1.4%
Telefonica S.A.
1.3%
Banco Santander
1.1%
Deutsche Bank AG
1.0%
BP PLC
1.0%
Fund
2.4%
11.0%
34.8
2..Ox
16.1x
14.4%
MSCI
EAFE GDP
2.4%
11.0%
34.8
2.Ox
16.1x
14.4%
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Information Technology
Materials
Telecom Services
Utilities
6.1%
6.1%
■ 7.4%
7A%
5.7?,
5.7%
- 10.2%
10.2
6.9%
6.9
7.2%
. 7.2%
_
9.4%
9.4
6.9%
6.90
12.6%
12.6
27.6°x,
27.6 %
■ Fund
■ MSCI EAFE GDP Weighted
Cumulative and Annualized Total Return
Performance
Annualized
Three
One
Three
Five
Ten
Inception
Months
Year
Years
Years
Years
6/01/1994
Fund
16.40o
21.1%
12.4%
-2.1%
7.0%
6.3%
MSCI EAFE GDP Weighted
16.6 °c:
20.200
11.60,,
-2.3%
5.80,0
5.4 °-
Lipper International Funds Average
14.2%
18.1%
10.2%
-2.0%
6.4%
9.1%
TRUSCO CAPITAL MANAGEMENT
Period Ending
December 31, 2004
Past P'VilrMa nce is not
nulicalire n f future results.
Performance retaurac are
churn net offtes. .Vlore
current inve.cimeal
performance return
infarmaton may he obtained
b-v calling 1- 800474 -4770,
optiaa i, or Visiting the .STI
Classic Funds website at
u• u' �u•. cliclas.� it farad.. roan.
1'urtfolia holdings and
characteristics are as o f
121.i1104 and mqv change at
a'Y time and without /aotit.,
STI Classic International
al Equity Index Fund- continued
The MSCI EAFE GDP was up 16.6% in
the fourth quarter. The best performing
sectors were Telecommunication
Services +23 %, Financials +21%, and
Utilities +18 %. The worst performing
sectors were Consumer Discretionary
+12.9 %, Energy +9.7 %, and Healthcare
+9.6 %. From a country standpoint,
Greece, Austria and Spain were all up
over 24 %. The worst performing
markets were Denmark +10.7 %, Hong
Kong +10.5% and Singapore +6.4 %.
Investors sought out stocks that were
trading at lower valuation multiples and
stocks with higher Dividend Yields.
Smaller cap stocks outperformed larger
cap stocks, and investors rewarded
stocks with high estimated earnings
growth. The Fund returned 16.4%
closely tracking its benchmark.
Fund Manager:
Chad Deakins, CFA
First Quarter
3 Year
Fund
Alpha
-0.13
Beta
R S oared
Second Quarter
0.5%
17.6%
1.9%
0.6%
°
- 12./° 2
°
0.9/°
-8.2%
4.8%
Third Quarter
11.8%
4.8%
4.3%
4.3%
1.4%
1.5%
20.1 %
0.2%
Fourth Quarter
2.6%
- 13.0%
5.7%
- 8.°/,
5
°
- 15.5 /°
°
-20.5%
8.9%
-0.9%
-5.5%
21.3%
16.4%
-4.7%
4.5%
5.7%
17.0%
16.4%
Fund
MSCI EAFF GDP Weighted
9.0%
30.0%
30.7%
-17.1%
°
23.5/0
- 16.5%
40.5%
21.1%
Lipper International Funds Average
4.4%
25.1%
29.5%
- 15.4%
- 23.3%
- 17.3°•
40.0%
20.2%
7.3%
12.7%
37.8%
- 14.7%
- 19.3%
-16.7%
34.7%
18.1%
$25,000
$20,000
$15,000
$10,000
$5,000
Ju
-° -emu ,un -w ,tun -98 Jun -99 Jun -00 Jun -01 Jun -02 Jun -03 Jun -04
'Fund MSCI EA FE GDP Weighted
3 Year
Fund
Alpha
-0.13
Beta
R S oared
Share Ratio _777-De-77-ion
MSCI EAFE GDP Weighted
1.00
0 99
0.69 4.57
Lipper International Funds
0 00
1.00
1.00
0.80 4.62
-0.12
0.98
0.96
0.14 4.45
Period Ending SunTrust Retirement Mid -Cap Equity Fund
December 31, 2004
Past perjorntance is not
indicative q/ future results.
Performance returns are
shown gross of fees. Portfolio
holdings and characteristics
are as of 1 213 110-1 and tnav
change at anY time and
Fund Description Fund Philosophy Composition
Value Blend Growth NAV: $28.44
Large Assets (mil): $23.42
Medium
Small
Investment Category
Annualized
Mid -Cap Blend
Consumer Staples
Three
•. Ten Holdings
Security
Equity Securit
Equity
Monsanto Co.
2.0% UGI Corp.
1.9%
Reynolds American Inc.
2.0% Student Loan Corp.
1.8%
Yum! Brands Inc.
2.0% Rockwell Collins Corp.
1.8%
Ball Corp.
2.0% Amerada Hess Corp.
1.7%
Equitable Resources Inc.
1.9% Marathon Oil Corp.
1.7%
10.6%
Portfolio
6.3%
13.2%
Characteristic
Dividend Yield (Current)
EPS Growth (5 Yr. Est.)
Market Capitalization ($bil)
Price -to -Book
P/E (12 mo trailing)
Price -to -Sales
Fund
1.6%
12.0%
7.9
2.5x
16.4x
1.ix
Fund
Russell Mid -Cap Index
Lipper Mid Cap Core Funds Avg
Russell Mid -Cali
1.4%
12.8%
7.2
2.6x
19.1x
1.2x
Three
Months
13.0 °o
13 . 7
11.9%
The Fund seeks long -term capital growth Cash: 0.0%
by investing in domestic corporations with Stocks: 100.0%
a market capitalization between $1 billion
and $10 billion. The Fund is designed to
comply with guidelines that are based
principally on Florida laws governing the ossi «ks
investment of municipal retirement plans ,Wo=o
for fire, police and general government cap^
0 0 =,
employees.
Industry Concentration
Consumer Discretionary
Annualized
3.5%
Consumer Staples
Three
Five
4 8
Inception
6.0%
Energy
Years
Years
5.0%
Financials
1.8%
3.6%
11.7%
9.4
Health Care
10.4%
Industrials
10.6%
11.4°/o
10.6%
Information Technology
6.3%
Materials a %
%
Telecom Services Utildies
8.0%
20.0
17.8 %
22.3
NE21.6%
15.5
15.3%
■ Fund
■ Russell Midcap Index
TRUSCO CAPITAL MANAGEMENT
Annualized
One
Three
Five
Seven
Inception
Year
Years
Years
Years
12/1996
18.00%
1.8%
3.6%
11.7%
14.0%
20.2
12.2°1
7 6 °,,
9.40,0
11.4°/o
15.5%
9.0%
6.3%
13.2%
10.7%
TRUSCO CAPITAL MANAGEMENT
eriod En
Decembe 31d,1 004 I SunTrust Retirement Mid -Cap Equity Fund - continued
Past per /orntance is not
indicative olfiuure results.
Perjnrntance returns are
show grass offices. Part %alio
holdings and characteristics
are as (/ 121,11104 and may
change at any time and
uvilhout notice.
Manager's Quarterly Perspective
The Russell Mid Cap Index was up
13.7% for the fourth quarter. The best
performing sector was Information
Technology up 20 %. The worst
performing sector was Energy up only
2.8 %. All other sectors were up
between 11 % to 15 %. Cheaper
stocks generally outperformed more
expensive stocks and high beta
stocks dramatically outperformed with
stocks having a beta of 1.7 or higher
returning over 24% on average.
Some of the best performing stocks
were: Verisign up 68% on blockbuster
product release; Apple Computer up
66% on solid growth from its iPod;
and Veritas Software up 60% on
merger deal with Symantec. The
Fund returned 13.0% which was in
line with its benchmark.
Fund Manager:
Chad Deakins, CFA
Historical Quarterly / Calendar Returns
Fund 31.4% 16.0% 55.9% 12.2% 1.2% - 30.4% 28.4% 18.0%
Russell Mid -Cap Index 29.0% 10.11% 18.2% 8.3% -5.6% -16.2% 40.1% 20.2%
Lipper Mid Cap Core Funds Avg 22.2% 7.8% 28.2% 6.3% -4.9% -17.4% 36.1% 15.5%
Growth of $10,000 from 12/31/1996 to 12/31/2004
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Dec -96 Dec -97 Dec -98 Dec -99 Dec -00 Dec -01 Dec -02 Dec -03 Dec -04
1997
1998 1999 2000 2001
2002
2003
2004
First Quarter
-1.2%
13.8% -0.6% 21.5% -11.7%
-5.5%
-4.9%
3.8%
Second Quarter
14.5%
-1.3% 19.1% -1.5% 16.5%
- 13.4%
14.1%
0.5%
Third Quarter
16.7%
-17.9% -3.1% 6.0% -21.0%
- 15.3%
4..5%
0.2%
Fourth Quarter
-0.5%
25.9% 35.8% -11.6% 24.5%
0.5%
13.2%
13.0%
Fund 31.4% 16.0% 55.9% 12.2% 1.2% - 30.4% 28.4% 18.0%
Russell Mid -Cap Index 29.0% 10.11% 18.2% 8.3% -5.6% -16.2% 40.1% 20.2%
Lipper Mid Cap Core Funds Avg 22.2% 7.8% 28.2% 6.3% -4.9% -17.4% 36.1% 15.5%
Growth of $10,000 from 12/31/1996 to 12/31/2004
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Dec -96 Dec -97 Dec -98 Dec -99 Dec -00 Dec -01 Dec -02 Dec -03 Dec -04
TRUSCO CAPITAL MANAGEMENT
Fund
Russell Midcap Index
Other
3 Year
Alpha
Beta
R -S uared
_Sharpe Ratio Std. Deviation
Fund
-0.29
1.1
0.92 0.02 4.50
Russell Mid -Cap Index
0.00
1.00
1.00 0.71 4.41
Lipper Mid Cap Core Funds
-0.21
0.95
0.93 0.16 4.37
TRUSCO CAPITAL MANAGEMENT
Period Ending SunTrust Retirement Small Cap Growth Stock Fund
December 31, 2004
Past per(onunnce is not
indicative u.1 jature re.sult.c.
Per /brntanee returns are
shown grass alftes. Portlolio
holdings and characteristics
are as q1'12131104 and map
change at aap lime and
tffi�
Value Blend Growth
The Fund seeks long -term capital Cash: 2.6%
Large
NAV: $13.02 appreciation by investing in domestic U.S. Stocks: 97.4%
Assets (mil): $45.1 corporations with a market capitalization
Medium
between $50 million and $2 billion. The
US Sloiks
Fund is designed to comply with guidelines �, a°
Small
that are based principally on Florida laws
governing the investment of municipal
Investment Category
retirement plans for fire, police and general cash
Small Growth
government employees. 26%
.. Ten Holdings
Security % Equity
Security % Equity
Industry Concentration
,s.7%
Rofin -Sinar Tech. 1.0%
Jos. A. Bank Cloth. 0.9%
Consumer Discretionary 20.6%
Protein Design Labs 1.0%
Digi Intl. 0.9%
2.7%
Consumer Staples 2.8%
Actuant 1.0%
United Therapeutics 0.9%
Activision 0.9%
Copart 0.9%
3 a%
Energy 6.9%
Navigant Consult. 0.9%
Scientific Games 0.9%
Financials ,, ,%
, 7.a%
e
Healthcare 16.6%
Characteristic
Fund S &P 600 SCG
22.7
Industrials
Dividend Yield (Current)
0.2% 0.5%
23.4%
EPS Growth (3 yr est.)
20.0% 16.3%
Information Technology
16'' °'°
4.2 °0
Market Capitalization ($bil)
1.0 1.5
"1a1ef a15 4.9%
Price -to -Book
2.8x 3.8x
Telecom services o.o% ■ Fund
P/E (12 months trailing)
21.8x 23.3x
o.a ■ S &P 600 Small Cap Growth Index
Return on Equity
25.4 /°
13.9% °
Utilities o.o%
2.0%
Total Performance
Manager's Quarterly Perspective
Small Cap Growth stocks finished the year with double -digit returns in the fourth quarter,
Three Twelve
Inception
p as the S &P 600 Barra Growth and Russell 2000 Growth gained 14.0% and 15.0/ '
Months Months
10/20/2003 respectively. Although only one -fourth of managers beat the Russell 2000 Growth
benchmark for the quarter, the Small Cap Growth Fund slightly outpaced its indices with a
Fund
16.0 0-0 23.3 0'0
24.7,o 16.0% return. The Fund also surpassed its peers, exceeding the Lipper Small Growth
category's 14.2% rise. Superior stock selection in the Industrial, Healthcare, and
S &P 600 Small Cap Growth Index 14.0', 22.0 °�,
24.3 °1 Consumer Discretionary sectors contributed to the Fund's strong performance. Additional
Lipper Small Cap Growth Classification
14.2% 10.7%
11.8% contribution came from the Fund's overweight position in two of the top performing
sectors, Industrials and Technology. Growth stocks outperformed Value for the quarter,
but trailed for the full year.
Fund Manager:
Mark Garfinkel, CFA
TRUSCO CAPITAL MANAGEMENT
Period Ending SunTrust Retirement High Grade Relative Value Fund
December 31, 2004
Past perfomtance is not
indicative af.lature results.
Per /bruraece returns are
shown grass of ftes. Portfilio
holdings and characteristics
are as of 12/.31/04 and nla.i
Change at anV tittle and
without notice.
Value Blend Growth
Large
Medium
Small
Investment Cateaory
Large Value
Security
%Equity
Exxon Mobil
2.0%
Citigroup
2.0%
Rockwell Auto.
2.0%
WellPoint
2.0%
Prudential Financial
1.9%
Characteristic
Dividend Yield (Current)
5 Year EPS Growth (Hist.)
Market Capitalization ($bil)
Price -to -Book
P/E (12 months trailing)
Return on Equity
Fund
Barra Value Index
S &P 500
Fund Description Fund Philosophy I
e runo see <s ionperm capital
Cusip: 990001182 appreciation with a secondary
goal of current income by using a
NAV: $12.78 value- oriented investment
Assets (mil): $45.6 strategy. The Fund is designed to
comply with guidelines that are
based principally on Florida laws
governing the investment of
municipal retirement plans for fire,
police and general government
Security
%Equity
General Electric
1.9%
American Electric
1.8%
Bank of America
1.8%
Principal Financial
1.8%
Berkshire Hathaway B 1.7%
Three
Months
9.1%
9.9?c
9.2%
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Information Technology
Materials
Telecom Services
Utilities
Cash: 3.0%
U.S. Stocks: 97.0%
�1 13.
13.3
- 9.7%
2.7%
6.9%
6.5%
10.3 %
7.6
13.4%
7s
9.6%
.0%
4.8%
1.6%
3.1%
■ 5.8
4.5%
■ 5.8%
Barra
Fund
Value
1.8%
2.0%
14.4%
5.6%
68.8 B
62.0 B
2.7x
2.1 x
17.9x
16.3x
20.0%
16.9%
Three
Months
9.1%
9.9?c
9.2%
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Information Technology
Materials
Telecom Services
Utilities
Cash: 3.0%
U.S. Stocks: 97.0%
�1 13.
13.3
- 9.7%
2.7%
6.9%
6.5%
10.3 %
7.6
13.4%
7s
9.6%
.0%
4.8%
1.6%
3.1%
■ 5.8
4.5%
■ 5.8%
23.9%
■ Fund
■ Barra Value Index
38.8%
TRUSCO CAPITAL MANAGEMENT
Annualized
One
Two
Inception
Year
Years
6/30/02
14.7%
20.5%
10.3%
15.7"
23.50,-
12.200
10.9%
19.4%
10.4%
23.9%
■ Fund
■ Barra Value Index
38.8%
TRUSCO CAPITAL MANAGEMENT
Period Ending
December 31, 2004
Past performance is not
indicative of future re.cuhN.
Performance returns are
shown gross of fees. Portfolio
holdings and characteristics
are as o/'!2 /3//04 and mqv
change at any time and
without notice.
SunTrust Retirement High Grade Relative Value Fund -
continued
Manager's Quarterly Perspective
Historical Quarterly
Calendar
2002 2003
2004
Concerns over interest rates, energy
First Quarter
N/A -4.1%
2.4%
prices, war in Iraq, and the
Second Quarter
N/A 13.5%
2.6%
presidential race kept investor
Third Quarter
-17.4% 2.1%
0.1%
enthusiasm in check for most of the
Fourth Quarter
6.5% 14.1%
9.1%
year. Meanwhile, the economy
continued to expand, corporate
profits were solid, and core inflation
Fund
-12.1% 26.7%
14.7%
remained low. In the end, investors
Barra Value
-12.6% 31.8%
15.7%
refocused on the positives rather
S &P 500
-10.3% 28.7%
10.9%
than their concerns propelling the
market to a strong rally. Value -
oriented strategies enjoyed a
particularly good year. Similar to the
Growth of $10,000
,
1998 to early 2000 period of strength
in the S &P 500, value indexes proved
difficult to beat in 2004, with ideal
$14,000 —
--
conditions favoring their particular
$13,000
compositions. Although the Fund
$12,000
trailed its primary value benchmark, it
fared extremely well against the S &P
$11,000
500 as well as other actively
$10,000
managed large cap value funds.
$9,000
Conditions are likely to change in
2005 and we expect a waning
$8,000
economic tailwind, profit
$7,000
deceleration, and renewed
Jun Sept
Dec Mar Jun Sept Dec March June
Sept Dec
appreciation for sustainable earnings
—
sunTrust Retirement High Grade Relative Value — S&P/Barra 500 Value
growth. Together, these factors
suggest moderating equity returns
following two above - consensus years
in 2003 and 2004.
Fund Manager:
Charles B. Arrington, CFA
TRUSCO CAPITAL MANAGEMENT
Period Ending
December 31, 2004 SunTrust Retirement High Grade Growth Fund
Pact per /brmance is not
indicative ol'ficture results.
Performance returns are
shown gross of fees. Portfolio
holdings and characteristics
are as q/' 12/31104 and may
change at cnry time and
without notice.
The Fund seeks capital appreciation by Cash: 3.6%
Value Bland Growth investing primarily in large, well- o
NAV: $56.09 U.S. Stocks: 96.4 /°
Large established domestic corporations. The
Assets (mil): $59.8 Fund is designed to comply with Non -U.S. Stocks: 0.0%
Medium guidelines that are based principally on
Florida laws governing the investment
Small of municipal retirement plans for fire,
police and general government
employees.
Investment Category
Large Growth"__
Security E uit
Securit
Equity
Annualized
Exxon Mobil Corp. 2.9%
Lexmark International
2.1%
Consumer Discretionary
11 90 16.9%
Microsoft Corp. 2.5%
Home Depot Inc.
2.0%
Year Year
7.s
Fund 7.9%
6.6%
1.4%
Consumer Staples
10.5
American Express Co. 2.4%
General Electric Co.
2.0%
-23 °, 12 11,-
1 1.4' °,r
Cisco Systems Inc. 2.2%
Goldman Sachs
2.0%
Energy
1
4. 7.2%
Oracle Corp. 2.1%
Harley- Davidson Inc.
2.0%
Financials
20.5%
20.6
Portfolio Characteristics
Healthcare
10.3 %
12.7%
Characteristics
Fund S &P 500 Index
Industrials
17.1%
11.8%
Dividend Yield (Current)
1.1% 1.4%
20.5%
Information Technology
16.0%
Market Capitalization ($bil)
66.2 91.7
17%
Materials
3 1
Price -to -Book
3.2x 3.Ox
P/E (12 mo fwd)
19.6x 17.8x
Telecom Services
3.3% ■ Fund
EPS Growth (5 yr est)
13.3 12.1
Utilities
1.3% ■ S &P 500 Index
2.9%
ROE
20.6 16.2
TRUSCO CAPITAL MANAGEMENT
Annualized
Three
One 11
Three
Five Ten
Inception
Months
Year
Year
Year Year
04/01/1990
Fund 7.9%
6.6%
1.4%
0.70o 13.5%
12.4%
S &P 500 Index 92 °,�
10.9" 0
3.6 °,
-23 °, 12 11,-
1 1.4' °,r
Lipper Large Cap Growth Index 10.0%
7.5%
-0.7%
-9.7% 8.6%
9.3%
TRUSCO CAPITAL MANAGEMENT
Period Ending
December 31, 2004 SunTrust Retirement High Grade Growth Fund
Past performance is not
indicative of future results.
Perfonuance returns are
sho wit gross offees. Portfolio
holdings and characteristics
are as of 12131104 and nug
change at a-v time and
without notice.
Manager's Quarterly Perspective
The fourth quarter saw a significant rise
in stock prices after three lackluster
quarters. The S &P 500 advanced 9.2%
while the Fund was up 7.9 %. During
the fourth quarter, Technology,
Consumer Discretionary, and
Industrials were the strongest sectors
as they are leveraged to the economy.
We were market weighted or over
weighted these sectors and
underweighted the two worst
performing sectors, Energy and
Healthcare. However the style and size
issues the Fund faced for the first nine
months of the year continued as the
value style & small capitalization
equities out performed large cap
growth for the quarter. For the year
ahead, we anticipate a dramatic drop in
the S &P 500 earnings growth from the
20% level of 2004 to 6% or 7 %. That
should shift the investor focus to our
large cap growth style, which is
expected to grow earnings at double
the index values. We also expect large
caps to outperform small caps after six
years of trailing returns.
Fund Manager:
Elliott Perny, CFA
Historical Cluarterly
/ Calendar
Returns
1997
1998
1999
2000
2001 2002
2003
2003
First Quarter
2.6%
15.4%
5.6%
0.2%
-4.8% 2.4%
-2.2%
1.3%
Second Quarter
18.8%
5.7%
5.1%
0.6%
5.8% - 10.9%
9.6%
1.0%
Third Quarter
7.3%
-12.4%
-7.7%
2.6%
- 13.6% - 14.9%
2.0%
-3.4%
Fourth Quarter
3.7%
25.9%
14.8%
-1.7%
12.3% 4.0%
10.4%
7.9%
Fund 35.5% 34.7% 17.6% 1.6% -2.3% - 19.3% 20.9% 6.6 %
S&P 500 Index 33.4% 28.8% 21.1% -9.2 % - 11.9% -22.1% 28.7% 10.9%
Lipper Large Cap Growth 28.1% 25.7% 28.0% - 10.9% - 18.0% -24.2% 27.0% 7.5%
Growth of $10,000 from 04/01/1990 to 12/31/2004
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0 ' I
Apr -90 Apr -92 Apr -94 Apr -96 Apr -98 Apr -00 Apr -02 Apr -04
Fund S &P 500
MPT Statistics / Other Measurements
3 Year
Alpha Beta R- Squared Sharpe Ratio Std. Deviation
Fund -0.10 0.69 74.48 0.00 11.85
S &P 500 Index 0.00 1,00 100.00 0.15 14 86
TRUSCO CAPITAL MANAGEMENT
Period Ending I SunTrust Retirement High Grade Bond Fund
December 31, 2004
Past performance is not
indicative o(,(uture results.
Perlorrnanre returns are
shown gross (/J ft ts. Por#Wio
holdings and characteristics
are as of 121.31104 and ntge
change at any titre and
without notice.
Short Int. Lon
High
Medium
Low
Investment Category
Intermediate -Term Bond
Sector
Corporate Bond
Agency
Mortgages
US Treasury
TIPS
Cash
Unit Price:
Assets (mil):
Fund
ML "A" GtC
17.0%
24.69'°
0.0%
20.3%
2.7%
0.0%
68.0%
55.1%
10.4%
0.0%
1.9%
0.0 00
The fund seeks to provide a Cash: 1.9%
$32.19 high level of total return Bonds: 98.1%
$184.02 through current income and
capital appreciation by Bonds
investing in domestic corporate 98.1%
investment grade bonds rated
A or higher by major credit
rating agencies and U.S. Casa
Government securities. 9. -0
0 -1 Year
1 -3 Years
3 -5 Years
35.5
Portfolio Characteristics
Characteristic
Fund
ML "A" GC
5 -7 Years
12.'
19.2 ° /,
Average Rating
AGY
AAA
7.9,
Average Coupon
3.6 °�°
5.1
7 -10 Years
Fund
15.0 %
Current Yield
3.4%
4.8
■ ML A Rtd G/C
Yield -to- Maturity
3.7%
4.0
10 + Years
17.4
Average Maturity
7.7
7.3
13
1
Effective Duration
4.9
4.9
Cumulative and Annualized
Total Return Performance
Annualized
Three
One
Three
Five
Ten
Inception
Months
Year Years
Years
Years
9/1/89
Fund
1.0%
4.1% 6.3%
7.6%
7.7%
8.1%
Merrill Lynch G/C
A Rated and Above 0.6%
3.8% 5.6%
7.2%
7.4 °0
8.7 0o
TRUSCO CAPITAL MANAGEMENT
Period Ending I
December 31, 2004 SunTrust Retirement High Grade Bond Fund
Pact per /brtnanee is not
indicative o.f.f Lure results.
Perlarnianee returns are
shown gross o/ fees. Por(/olio
holdings and characterislie.s
are as (#'12131104 and may
change at any time and
without notice.
The Fund had an excellent fourth quarter,
with returns of 1.0% versus 0.6% for the
Merrill Lynch Government/Credit A or
Higher Index, bringing annual results to
4.1 % versus 3.8 %. Returns were positively
impacted by two primary strategies: an
aggressive barbell strategy (overweighting
very short and long maturities) to take
advantage of the flattening of the yield
curve, and increasing our TIPS (Treasury
Inflation Protected Securities) exposure as
the breakeven spreads became very
attractive early in the quarter. We had
reduced our exposure to corporate bonds
as the spreads on these higher rated
securities narrowed to historically tight
levels. As we look toward 2005, we have
reduced our curve flattening trade and are
now underweight corporates, as we have
already had significant gains in these
areas.
Fund Managers:
John Talty, CFA and
Perry Troisi
Fund 10.0% -1.1% 10.7% 8.6% 11.4% 3.6% 4.1%
Merrill Lynch G/C A Rated 9.7% -2.20% 12.4% 8.2% 11.6% 3.2% 3.8 0o
Growth of $10,000 from 9/11/1989 to 11
$35, 000
eC; eG GG GCi � GCi �Ci �Ci �Ci eCi �G �G eG �G eG
Fund ML A Rtd G/C
TRUSCO CAPITAL MANAGEMENT
$30,000
$25,000
$20,000
$15,000
$10,000
1998
1999
2000
2001
2002
2003
2004
First Quarter
1.7%
-0.4%
2.3%
3.2%
-0.5%
1.6%
2.9%
Second Quarter
2.7%
-1.0%
0.7%
0.2%
4.2%
2.5%
-3.0%
Third Quarter
5.2%
0.9%
2.5%
5.2%
5.7%
-0.4%
3.3%
Fourth Quarter
0.2%
-0.5%
4.9%
-0.1%
1.5%
-0.1%
1.0%
Fund 10.0% -1.1% 10.7% 8.6% 11.4% 3.6% 4.1%
Merrill Lynch G/C A Rated 9.7% -2.20% 12.4% 8.2% 11.6% 3.2% 3.8 0o
Growth of $10,000 from 9/11/1989 to 11
$35, 000
eC; eG GG GCi � GCi �Ci �Ci �Ci eCi �G �G eG �G eG
Fund ML A Rtd G/C
TRUSCO CAPITAL MANAGEMENT
$30,000
$25,000
$20,000
$15,000
$10,000
Period Ending SunTrust Retirement High Grade Intermediate Bond Fund
December 31, 2004
Past performance is not
indicative of fruure results.
Performance returns are
sho",n gross ol',(ees. Portfolio
holdings and characteristics
are as of !2/31104 and mae
change at anv tune and
Short Int. Lon The fund seeks to provide a Cash: 2.4%
Unit Price: $10.52 high level of total return Bonds: 97.6%
High Assets (mil): $217.91 through current income and
Medium capital appreciation by Bonds
Low investing in domestic corporate 97.6%
investment grade bonds rated
Investment Category A or higher by major credit
rating agencies and U.S. cash
Intermediate -Term Bond 2A.'.
Government securities.
Sector
Fund
Leh Agg Int A+
Corporate Bond
12.1%
14.90x,
0 -1 Year
Agency
0.0%
12.8 ",
Mortgages
42.5%
47.71,,
US Treasury
33.3%
23.00.
1 -3 Years
TIPS
9.7%
0.0110
Cash
2.4%
1.6%
3 -5 Years
Portfolio Characteristics
Characteristic
Fund
Leh Agg Int A+
5 -7 Years
Average Rating
AGY
AAA/AA1
Average Coupon
4.2%
4.9%
Current Yield
4.1%
4.8%
7 -10 Years
Yeld -to- Maturity
4.1%
4.3%
Average Maturity
6.5
5.1
10+ Years
Effective Duration
3.2
3.3
44.6%
x Better
The Fund had a solid fourth quarter, with returns of 0.9% versus 0.8% for the Lehman
Aggregate Intermediate A or Better Index, bringing annual results to 3.7% versus 3.6 %.
Three One Returns were positively impacted by two primary strategies: a barbell strategy
Months Year (overweighting very short and longer maturities) to take advantage of the flattening yield
Fund 0.9% 3.70io curve, and increasing our TIPS (Treasury Inflation Protected Securities) exposure as the
Lehman Aggregate Intermediate A or Better" 0.8 3.6 breakeven spreads became very attractive early in the quarter. We continue to be
underweighted in the mortgage sector which has expensive valuations. As we look
toward 2005, we have reduced our curve flattening trade and are underweight
corporates, as we have already had significant gains in these areas.
Fund Managers: John Talty, CFA and Perry Troisi
TRUSCO CAPITAL MANAGEMENT
Period Ending
December 31, 2004
Source: ISS
Corporate Governance
♦ What is CGQ?
• Corporate Governance Quotient (CGQ) is a rating system designed to
assist institutional investors in evaluating the quality of corporate
boards and the impact their governance practices may have on
performance. The CGQ uses a comprehensive set of objective and
consistently applied criteria to each of the companies rated.
♦ What companies are covered in the CGQ database?
• The database features corporate governance ratings on more than
5,500 U.S. companies.
♦ How are CGQ scores determined?
• Ratings are calculated on the basis of eight core categories:
Board of Directors
Audit
• Charter and bylaw provisions
• Anti - takeover provisions
• Executive and director compensation
• Progressive practices
Ownership
Director education
• All scores are expressed on a relative basis compared to a company's industry
and index group.
City of Palm Beach Gardens TRUSCO CAPITAL MANAGEMENT
in
Period Ending
December 31, 2004
■Top Quartile
IN 2nd Quartile
E] 3rd Quartile
Bottom Quartile
High Grade Fund's Corporate Governance Ratings
Average Score 88.6
City of Palm Beach Gardens
e s ^%
2:
Average Score 82.3
13.7%
Average Score 58.5
163
333
27
6.6%
75,0%
Average Score 82.5
8.0%
6 3
Average Score 76.7
4.1%
14 3
Period Ending
December 31, 2004 High Grade Fund's Corporate Governance Ratings
■Top Quartile
®2nd Quartile
3rd Quartile
Bottom Quartile
City of Palm Beach Gardens
6.5%
Bottom Quartile
None
6.6%
72.9%
Bottom Quartile
SEI Investments Co.
750-
CGQ
CGQ
8.60
TRUSCO CAPITAL MANAGEMENT 1 20
Period Ending
December 31, 2004 High Grade Fund's Corporate Governance Ratings
■Top Quartile
■2nd Quartile
E] 3rd Quartile
Bottom Quartile
137',
16.3% 2.3%
High Grade Int. Bond
City of Palm Beach Gardens
Small Cap Bottom Quartile CGQ
Illumina Inc.
24.7
Mine Safety Appliances Co.
24.7
Penn National Gaming Inc.
24.7
P.A.M. Transportation Services Inc.
24.4
Rocky Shoes & Boots Inc.
23.8
Measurement Specialties Inc.
22.6
Infocrossing Inc.
21.9
BankAtlantic Bancorp Inc.
20.7
Marten Transport Ltd.
19.8
Digi International Inc.
19.1
Jupitermedia Corp.
15.0
Skyworks Solutions Inc.
14.5
Pacer International Inc.
12.8
U.S. Xpress Enterprises Inc.
11.6
W Holding Co. Inc.
11.5
Dover Downs Gaming & Entertainment Inc.
8.0
TeleCommunication Systems Inc.
7.7
Kforce Inc.
7.5
Third Wave Technologies Inc.
6.4
Symmetricom Inc.
6.0
Santander Bancorp
5.3
Ultimate Software Group Inc.
5.0
Bradley Pharmaceuticals Inc.
4.7
American Software Inc.
2.8
Goodys Family Clothing Inc.
2.7
Bio -Rad Laboratories Inc.
2.1
Covenant Transport Inc.
1.2
Metrologic Instruments Inc.
1.2
Mid Cap Bottom Quartile CGQ
MEMC Electronic Materials Inc. 8.6
Old Dominion Freight Line Inc. 81
HG Bond Bottom Quartile CGQ
None
HG Int. Bond Bottom Quartile CGQ
None
TRUSCO CAPITAL MANAGEMENT 1 21
Period Ending
December31,2004 Fund Attribution Summary- Appreciated more than 15%
Security
SunTrust High Grade Equity
Beginning
Mkt
Fund
Value
Ending
Mkt Value
Total
Return
PARKER HANNIFIN CORP
$
875,248.20
$ 880,098.80
28.91
EMC CORP MASS
$
953,077.06
$ 1,101,554.73
28.86
VERITAS SOFTWARE CORP
$
185,903.20
$
26.03
WALT DISNEY CO
$
968,748.00
$ 1,110,332.00
24.27
ORACLE CORP
$
684,323.76
$ 1,252,732.04
21.63
MARRIOTT INTL INC NEW
$
1,174,815.60
$ 1,013,348.20
21.32
TIME WARNER INC
$
812,907.24
$ 910,765.70
20.51
SLM CORP
$
-
$ 874,047.69
20.25
COMPUTER SCIENCES CORP
$
622,191.00
$ 960,544.80
19.68
SOUTHWEST AIRLS CO
$
616,277.76
$ 587,675.44
19.56
DELL INC
$
683,840.40
$ 962,856.86
18.37
DEERE & CO
$
1,122,524.50
$ 844,440.00
15.69
BANK NEW YORK INC
$
710,435.35
$ 652,191.30
15.21
SunTrust High Grade Equity
Income Fund
135,107.70
$ 151,377.60
32.96
PARKER HANNIFIN CORP
$
77,459.76
$ 69,377.84
28.89
ROCKWELL AUTOMATION INC
$
61,687.80
$ 101,280.20
28.56
EDWARDS AG INC
$
82,776.42
$ 107,636.11
25.29
SPRINT CORP
$
81,526.50
$ 85,732.50
24.09
TELEFLEXINC
$
59,330.00
$ 77,702.24
22.75
PUBLIC SVC ENTERPRISE GRO
$
121,495.20
$ 69,993.04
22.39
NEWELL RUBBERMAID INC
$
70,801.32
$ 110,862.77
22.00
MERRILL LYNCH & CO INC
$
102,025.44
$ 140,579.04
20.56
DIEBOLD INC
$
72,058.10
$ 113,856.39
19.84
PALL CORP
$
55,692.00
$ 68,756.25
18.63
SOUTH FINL GROUP INC
$
36,265.20
$ 43,460.08
15.88
MAY DEPT STORES CO
$
77,556.38
$ 138,944.40
15.78
SAFECO CORP
$
-
$ 99,517.20
15.50
DU PONT E I DE NEMOURS &
$
127,116.00
$ 153,036.00
15.42
BANK NEW YORK INC
$
85,468.10
$ 102,933.60
15.26
MCGRAW HILL COMPANIES INC
$
61,281.61
$ 42,932.26
15.10
SunTrust High Grade Relative Value Fund
$
266,339.10
$ 160,683.60
ARCHER DANIELS MIDLAND CO
$
574,552.26
$ 740,045.01
31.82
ROCKWELL AUTOMATION INC
$
714,285.90
$ 881,990.00
28.46
SYSCO CORP
$
195,108.32
$ 239,516.75
27.56
ADVANCED AUTO PTS INC
$
571,418.40
$ 706,742.40
26.98
SEI CORP
$
324,607.84
$ 396,154.64
24.79
WALT DISNEY CO
$
453,142.25
$ 547,632.20
24.32
NORFOLK SOUTHERN CORP
$
593,580.66
$ 655,039.00
22.00
EXELON CORP
$
214,453.05
$ 252,521.10
21.18
SUNGARD DATA SYS INC
$
506,966.56
$ 592,323.64
19.18
PRUDENTIAL FINL INC
$
747,841.92
$ 856,551.60
18.14
EXPRESS SCRIPTS INC
$
341,662.86
$ 391,831.44
16.99
INTEL CORP
$
343,507.44
$ 392,647.93
16.80
TEXAS INSTRS INC
$
399,191.52
$ 452,761.80
15.82
MAY DEPT STORES CO
$
491,301.47
$ 546,840.00
15.63
TEXTRON INC
$
329,319.48
$ 443,907.00
15.46
DU PONT E I DE NEMOURS &
$
614,394.00
$ 681,795.00
15.39
PRINCIPAL FINL GROUP INC
$
711,666.45
$ 794,031.30
15.32
INTERNATIONAL BUSINESS MA
$
465,739.68
$ 524,938.50
15.19
City of Palm Beach Gardens
ADVANCED MICRO DEVICES IN
$
59,475.00
$ 84,799.02
69.38
APPLE COMPUTER INC
$
185,225.00
$ 254,637.60
66.19
VERITAS SOFTWARE CORP
$
116,234.00
$ 156,482.55
60.39
PACIFICARE HEALTH SYS INC
$
86,245.00
$ 163,568.88
54.01
MONSANTO CO NEW
$
452,154.30
$ 467,453.25
52.93
ABERCROMBIE & FITCH CO
$
275,310.00
$ 275,127.00
49.32
HUMANA INC
$
162,037.80
$ 224,961.13
48.60
MEMC ELECTRONIC MATERIALS
$
-
$ 79,685.50
44.38
MCAFEE INC
$
59,797.50
$ 147,311.56
43.93
MARVEL ENTERPRISES INC
$
35,817.60
$ 42,045.44
40.66
NVR INC
$
214,890.00
$ 250,055.00
39.64
LEGG MASON INC
$
85,551.62
$ 95,677.56
38.04
MEDCO HEALTH SOLUTIONS IN
$
140,286.00
$ 156,748.80
34.63
ELECTRONIC ARTS INC
$
377,577.90
$ 238,084.80
34.12
COACH INC
$
135,107.70
$ 151,377.60
32.96
ARCHER DANIELS MIDLAND CO
$
135,840.00
$ 147,513.72
31.77
E TRADE FINL CORP
$
123,050.50
$ 135,327.40
30.91
STUDENT LOAN CORP
$
491,872.50
$ 406,272.00
30.35
LSI LOGIC CORP
$
53,077.65
$ 56,745.40
27.15
CAREMARK RX INC
$
-
$ 8,871.75
26.89
ADOBE SYS INC
$
179,823.45
$ 188,659.18
26.84
UNIVERSAL TECHNICAL INST
$
56,436.60
$ 59,848.40
26.31
RYLAND GROUP INC
$
550,863.70
$ 307,090.98
24.26
AVAYA INC
$
196,888.56
$ 204,026.40
23.39
SIEBEL SYS INC
$
82,751.50
$ -
23.01
CREE INC
$
$ 67,735.20
22.23
SEPRACOR INC
$
190,242.00
$ 194,971.08
21.71
XEROXCORP
$
285,964.80
$ 290,360.70
20.81
OLD DOMINION FREIGHT LINE
$
64,246.30
$ 64,275.60
20.79
7- ELEVEN INC
$
189,310.50
$ 190,570.15
19.87
SCHOLASTIC CORP
$
172,211.75
$ 173,157.60
19.65
SOUTHWEST AIRLS GO
$
266,339.10
$ 160,683.60
19.55
LENNAR CORP
$
225,624.00
$ 302,274.44
19.40
SUNGARD DATA SYS INC
$
77,727.90
$ 77,822.51
19.18
M D C HLDGS INC
$
237,209.50
$ 235,635.44
18.42
COMPUTER ASSOC INTL INC
$
137,943.50
$ 75,848.52
18.17
BALL CORP
$
562,572.90
$ 445,473.42
17.73
BMC SOFTWARE INC
$
78,733.80
$ 77,748.00
17.65
CIGNA CORP
$
511,084.20
$ 274,483.05
17.17
JEFFERIES GROUP INC NEW
$
153,391.50
$ 150,969.44
17.11
REYNOLDS AMERN INC
$
476,620.20
$ 462,325.20
16.67
YUM BRANDS INC
$
465,760.30
$ 454,343.40
16.29
NATIONAL SEMICONDUCTOR
$
116,717.15
$ 175,066.35
16.04
TEXTRON INC
$
342,559.10
$ 330,919.20
15.28
JUNIPER NETWORKS INC
$
165,082.00
$ 157,131.01
15.21
MCGRAW HILL COMPANIES INC
$
291,266.95
$ 280,295.48
15.19
RADIAN GROUP INC
$
288,937.50
$ 117,500.68
15.18
PRINCIPAL FINL GROUP INC
$
202,331.25
$ 190,862.28
15.12
TRUSCO CAPITAL MANAGEMENT 122
Period Ending
December31,2004 Fund Attribution Summary- Appreciated more than 15%
SunTrust Retirement Small Cap
Growth Fund
SunTrust Retirement Small Cap
Growth Fund
BEBE STORES INC $ 302,016.00 $ 141,645.00 91.68
ACTUANT CORP $ 387,374.00 $ 427,630.00
26.55
ULTRALIFE BATTERIES INC
S
114,921.00
$ 95,305.00
91.25
AFFILIATED MANAGERS GROUP
$
321,240.00
$ 352,248.00
26.52
ROCKY SHOES & BOOTS INC
$
175,000.00
$ 318,860.00
70.29
GENERAL MARITIME CORP
$
191,565.00
$ -
26.14
INTUITIVE SURGICAL INC
$
308,583.00
$ 332,166.00
61.70
ELECTRONICS BOUTIQUE HLDG
$
269,390.00
$ 249,052.00
25.92
US XPRESS ENTERPRISES INC
$
274,392.00
$ 146,500.00
58.04
CSK AUTO CORP
$
213,120.00
$ 108,810.00
25.68
CARRIER ACCESS CORP
$
166.800.00
$ 209,328.00
53.67
UNIVERSAL AMER FINL CORP
$
-
$ 157,794.00
24.89
DIGI INTL
$
325,755.00
$ 395,370.00
50.39
SCIENTIFIC GAMES CORP
$
196,730.00
$ 381,440.00
24.82
SFBC INTL INC
$
276.255.00
$ 327,850.00
50.13
MINE SAFETY APPLIANCES CO
$
272,824.00
$ 273,780.00
24.72
PENN NATIONAL GAMING INC
$
432,280.00
$ 363,300.00
49.88
SILICON IMAGE INC
$
-
$ 139.910.00
23.68
NETWORK EQUIP TECHNOLOGIE
$
59,490.00
$ 137,480.00
48.56
ELKCORP
$
327,568.00
$ 280,604.00
23.43
COLDWATER CREEK INC
$
229,570.00
$ 262.395.00
47.92
WESTERN DIGITAL CORP
$
151,188.00
$ 346,880.00
23.32
PERFORMANCE TECHNOLOGIES
$
94,800.00
$ 209,491.80
4715
M / I HOMES INC
$
-
$ 159,819.00
22.55
MICROSTRATEGY INC
$
184,905.00
$ 271,125.00
46.63
BANK OF THE OZARKS INC
$
175,407.00
$ -
22.41
ACTIVISION INC NEW
$
327,332.00
$ 413,690.00
45.49
SM &A
$
157,974.00
$ 194,344.71
22.05
ROFIN -SINAR TECHNOLOGIES
$
434,824.00
$ 445,725.00
44.49
FLORIDA ROCK INDS INC
$
240,051.00
$ 238,120.00
21.91
HOLOGIC INC
$
132,963.00
$ 164,820.00
42.55
GUITAR CENTER INC
$
255,470.00
$ 268,719.00
21.69
INNOVATIVE SOLUTIONS & SU
$
-
$ 201,360.96
40.55
MIPS TECHNOLOGIES INC
$
-
$ 131,438.40
21.45
S INTL INC
$
201,572.00
$ 240,204.84
40.39
SECURE COMPUTING CORP
$
149,523.00
$ -
21.45
COPART INC
$
316,131.00
$ 381,640.00
39.04
TEXAS INDS INC
$
303,496.00
$ 286,948.00
21.40
POWER ONE INC
$
184,680.00
$ 223,000.00
37.65
II -VI INC
$
119,034.00
$ 63,735.00
21.37
HYPERION SOLUTIONS CORP
$
183,546.00
$ 228,438.00
37.16
INTEGRATED DEVICE TECHNOL
$
230,864.25
$ 173,400.00
21.30
ASPECT MEDICAL SYS INC
$
-
$ 278,844.00
36.67
NAVIGANT CONSULTING INC
$
432,612.00
$ 399.000.00
21.13
CENTRAL GARDEN & PET CO
$
113,294.00
$ 137,742.00
36.32
HUNT J B TRANS SVCS INC
$
304,548.00
$ 125,580.00
20.83
MPS GROUP INC
$
125,309.00
$ -
34.72
LABOR READY INC
$
234,134.00
$ 245,340.00
20.68
METROLOGIC INSTRS INC
$
171,180.00
$ 248,625.00
34.07
DENDRITE INTL INC
$
278,876.00
$ 329,800.00
20.35
GEVITY HR INC
$
219,934.00
$ 370,080.00
34.03
CONNS INC
$
181,740.00
$ 188,384.00
20.31
JUPITERMEDIA CORP
$
224,867.40
$ 344,810.00
33.60
PHOENIX COMPANIES INC
$
257,374.00
$ 262,500.00
19.96
SKYWEST INC
$
251,335.00
$ 250,750.00
33.44
VENTIV HEALTH INC
$
169,500.00
$ 331,216.00
19.88
GENLYTE GROUP INC
$
347,706.00
$ 359,856.00
33.06
PALOMAR MEDICAL TECHNOLOG
$
280,576.00
$ 325,875.00
18.93
CYPRESS SEMICONDUCTER CDR
$
252,249.40
$ 211,140.00
32.69
OVERNITE CORP
$
154,007.00
$ 156,408.00
18.60
BUILDING MATERIAL HLDG CO
$
-
$ 114,870.00
32.67
ZENITH NATL INS CORP
$
211,550.00
$ 224,280.00
18.40
KFORCE INC
$
165,086.00
$ 247,252.50
32.46
WESTELL TECHNOLOGIES INC
$
-
$ 81,600.00
18.34
GENESCO INC
$
277,890.00
$ 317,628.00
32.23
SURMODICS INC
$
$ 123,212.90
18.09
MARINEMAX INC
$
231,956.00
$ 199,392.00
32.15
SIERRA HEALTH SVCS INC
$
$ 137,775.00
18.04
SILGAN HLDGS INC
$
213,535.60
$ 238,475.52
31.93
T -HO INC
$
116,760.00
$ 119,288.00
17.88
GARDNER DENVER INC
$
184,719.00
$ 230,586.66
31.63
WERNER ENTERPRISES INC
$
324,408.00
$ 330,544.00
17.24
SELECT MEDICAL CORP
$
210,851.00
$ 3,520.00
31.05
QUIKSILVER INC
$
424,514.00
$ 226,404.00
17.19
MARTEN TRANS LTD
$
346,115.64
$ 279,579.00
30.11
EPICOR SOFTWARE CORP
$
123,909.00
$ 126,810.00
17.12
ENGINEERED SUPPORT SYS IN
$
228,200.00
$ 236,880.00
29.78
CLICK COMM INC
$
-
$ 123,980.05
17.12
OMNIVISION TECHNOLOGIES 1
$
127,350.00
$ 98,080.00
29.68
CELADON GROUP INC
$
144,780.00
$ 153,525.00
16.80
PACER INTL INC TENN
$
96.760.00
$ 108,426.00
29.63
CBRL GROUP INC
$
266,992.00
$ 267,840.00
16.29
UNITED THERAPEUTICS CORP
$
202,594.00
$ 383,775.00
29.26
INFINITY PPTY & CAS CORP
$
-
$ 235,840.00
16.01
CACI INTL INC
$
364,182.00
$ 265,707.00
29.08
RAYOVAC CORP
$
258,230.00
$ 363,664.00
15.98
ASTA FDG INC
$
-
$ 92,249.08
28.98
MOLDFLOW CORP
$
-
$ 30,861.90
15.92
ANSYS INC
$
293,407.00
$ 240,450.00
28.94
CENTRAL EURO DISTRIBUTION
$
$ 212,688.00
15.90
GRIFFON CORP
$
318,821.00
$ 337,500.00
27.96
FIRST CASH FINL SVCS
$
$ 245,732.00
15.40
COMMERCIAL METALS CO
$
397,200.00
$ 151,680.00
27.29
PER -SE TECHNOLOGIES INC
$
256,564.00
$ 256,446.00
15.38
W HLDG CO INC
$
275,500.00
$ 303,496.20
27.02
BROWN SHOE CO INC
$
117,782.00
$ -
15.18
VENTANA MEDICAL SYS
$
201,760.00
$ 140,778.00
26.86
RARE HOSPITALITY INTL INC
$
143,910.00
$ -
15.11
City of Palm Beach Gardens TRUSCO CAPITAL MANAGEMENT 123
Period Ending
December 31, 2004
Fund Attribution
Summ
SunTrust High Grade Equity Fund
Beginning
Ending
Total
NO SECURITIES DEPRECIATED MORE THAN 15%
SunTrust High Grade Equity Income Fund
PFIZER INC
S 155.754 0C S
-18.37
SunTrust High Grade Relative Value Fund
NO SECURITIES DEPRECIATED MORE THAN 15%
-
SunTrust Retirement Mid Cap Fund
AUTODESK INC
$ -
$ 90,093.30
-43.70
ONYX PHARMACEUTICALS INC
$ 75,912.65
$ 47,904.81
-24.69
SunTrust Retirement Small Cap Fund
LIONBRIDGE TECHNOLOGIES I
$ 253,405.00
$ -
-37.65
GANDER MOUNTAIN CO
$ 216,162.00
$ 51,320.00
-35.90
DITECH COMMUNICATIONS COR
$ 441,083.00
$ 343,850.00
-33.23
GUESS INC
$ 46,680.01
$ 114,380.70
-29.53
JAKKS PACIFIC INC
$ 202,745.00
$
-23.64
HYPERCOM CORP
$ 302,580.00
$ 177,600.00
-19.78
SALIX PHARMACEUTICALS LTD
$ 344,320.00
$ 253,823.70
-18.26
TRANSACT TECHNOLOGIES INC
$ 303,996.00
$ 160,306.80
•17.37
AXCELIS TECHNOLOGIES INC
$ 154,836.00
$ -
-17.04
SMART & FINAL INC
$ 281,568.00
$ -
-15.94
SunTrust High Grade Bond Fund
NO SECURITIES DEPRECIATED MORE THAN 15%
SunTrust High Grade Intermediate Bond Fund
NO SECURITIES DEPRECIATED MORE THAN 15%
City of Palm Beach Gardens
ary - Depreciated more than 15%
TRUSCO CAPITAL MANAGEMENT 1 24