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Home My WebLink AboutAgenda GEPB 050806City of Palm Beach Gardens 10500 N. Military Trail Palm Beach Gardens, FL 33410 GENERAL EMPLOYEES PENSION FUND NOTICE OF MEETING AND AGENDA Please take notice that the Board of Trustees of the City of Palm Beach Gardens will conduct a meeting of the board at the above location on May 8, 2006 at 2:OOPM in Council Chambers. Old Business: Approval of 2/13/06 minutes New Business: Report from Rockwood Capital Advisors Report from Bogdahn Consulting Discussion Regarding Commission Recapture Program Report from Scott Christiansen Discussion of Renewing Fiduciary Liability Insurance Discussion of Terms for Din Laljie & Jami Smith Approval of Bills Adjournment DISABILITY INFORMATION In accordance with the Disabilities Act and F.S.S.286.26, persons with disabilities needing special accommodation to participate in this proceeding should contact the Human Resource Department no later then seven days subsequent to the proceeding at (561) 799 — 4223 for assistance, if hearing impaired, telephone the Florida Relay Service Number at 800 — 955 — 8770 (VOICE) for assistance. APPEAL NOTICE If a person decides to appeal any decision made by the Board, with respect to any matter considered at such meeting or hearing, he will need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. City of Palm Beach Gardens 10500 N. Military Trail Palm Beach Gardens, FL 33410 GENERAL EMPLOYEES PENSION FUND NOTICE OF MEETING AND AGENDA Please take notice that the Board of Trustees of the City of Palm Beach Gardens will conduct a meeting of the board at the above location on May 8, 2006 at 2:OOPM in Council Chambers. Old Business: Approval of 2/13/06 minutes New Business: Report from Rockwood Capital Advisors Report from Bogdahn Consulting Discussion Regarding Commission Recapture Program Report from Scott Christiansen Discussion of Renewing Fiduciary Liability Insurance Discussion of Terms for Din Laljie & Jami Smith Approval of Bills Adjournment DISABILITY INFORMATION In accordance with the Disabilities Act and F.S.S.286.26, persons with disabilities needing special accommodation to participate in this proceeding should contact the Human Resource Department no later then seven days subsequent to the proceeding at (561) 799 — 4223 for assistance, if hearing impaired, telephone the Florida Relay Service Number at 800 — 955 — 8770 (VOICE) for assistance. APPEAL NOTICE If a person decides to appeal any decision made by the Board, with respect to any matter considered at such meeting or hearing, he will need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. v� ' '(70 It -7- �i�j215 T i� �Sc,v LJ di AHor✓l�'y AE I GF�•4r �� Pe-& 66Aj 5th° PP BOGDAHN CONSULTING, LLC. simplifying your investment decisions DAVID WEST, CFA 340 West Central Avenue Suite 300 Winter Haven, Florida 33880 (863) 293 -8289 dave@bogdahnconsultin&com Fax: (863) 292 -8717 Performance Evaluation for Palm Beach Garden General Employees Pension Plan Rockwood & Sawgrass For the Period Ending March 31, 2006 Presented by: Bogdahn Consulting, LLC Palm Beach Gardens General Employees' General Employees Pension Plan Executive Summary Report Explanation The Executive Summary provides an overview of the fund's performance. It shows the performance in dollars, percent, and relative to the investment policy. These are provided over different time periods including up and down markets. All rates of return are annualized if the period for which they are calculated exceeds one year. Account Reconciliation: This section shows the performance of the account in dollars, during the most recent quarter, the calendar year, and since the inception date. The Beginning Value is the value at the start of each period. The Ending Value shows the value as of the date of the report. Net contributions are the total contributions less the total withdrawals durinq the period. The Investment G/L is the gain or loss resulting from the investments. It is the. difference between the beginning and ending values that cannot be explained by the net contributions. Positive investment G/L figures represent a profit, and negative values represent a loss. Investment Policy: This section defines the benchmark against which the fund is being compared. Generally, this is the most important objective for a fund to achieve. The performance of the fund relative to this measure over longer periods of time, such as market cycles, is the strongest indicator of the success or failure of the investment strategy. This objective should be reasonable, and the performance of the fund should be measured against the investment policy after adjusting for risk. Trailing Returns: This section shows the cumulative time weighted returns over the last 1 year, 2 years, and so on up through 10 years if available, as well as since the inception date. A positive difference indicates the fund has exceeded the policy's returns. The investor would prefer that this difference be positive for ali time periods; however, it is more important for it to be positive for the longer periods rather than the shorter periods. Calendar Year Returns: This section gauges the consistency of performance over one year time periods. Each calendar year of performance represents the return from January 1st through December 31st. Watch out for a trend of declining relative performance in recent periods. Returns In Up /Down Markets: This section shows how the fund performed in both up and down markets. The methodology is to segregate the performance for each time period into the quarters in which the market, as defined by the policy, was positive and negative. Quarters with negative policy returns are treated as down markets, and quarters with positive policy returns are treated as up markets. Thus, in a 3 year or 12 quarter period, there might be 4 down quarters and 8 up quarters. Up market returns are calculated for the fund and the policy based on the up quarters. Down market returns are calculated for the fund and the policy based on the down quarters. The ratio of the fund's return in up markets to the policy's is the up market capture ratio. The ratio of the fund's return in down markets to the policy's is the down market capture ratio. Ideally, the fund would have a greater up market capture ratio than down market capture ratio. Palm Beach Gardens General Employees' General Employees Pension Plan Executive Summary Account Reconciliation 03/31/2006 2006 09/30/1994 Qtr YTD Incept ....................... ......... ........................ ale. giR :9rig::Vale..:;..:::.`:.<:.: .... ..................I............ 779::.:::77;a .......... ............. :...:.:::::1;t)79: ' 1 0:48:::::::4:48::::::4:38: Net Mows .. ..: . .................................... ..................................... ::::::> .: d2 ::: ......... ............................... -02 :: . ...................... >:: 316 .................................... ..................................... 1rivestm -61, . »::: ............. t.................. ............................... ............................... ............................... ::: < : >:7. >:::::::: ......5............5........... > : : <::: »` : 2 049 . ..'.O./.L.: rtdtt� ` Valu>r :: ... 812 ` :: 2 81......:...:«2... 2 Trailing Returns through March 31, 2006 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr Investment Policy Index Weight ......................................................... ..... .................. ......... ..................................... ............................... S & �P:5 < ::::: ;::::::> ::::::.:::. :.::.:...:......:.:...:.. 0 .......OQ .................... 0.0.. :L hm' j'j:A- re .ate :Blond ...1...�n:.gg- g ................ ..... 40.00 ..................................... .........I..................... ............... ..I............................ ................... .................................... ............................... .............. .......... ........ ............................... :7otG: 10ti:o0: 09/30/1994 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept ....I .... ..............I ... ............................... Fitrid ........ :8::07:: ................................................................................... ::':6:15::: ' 1 0:48:::::::4:48::::::4:38: . .. ........................ :::: x:71::::? _ ............ : 4::7.9:::::: ............................... 4': 46::::::?7:14 ........I : ....... ............... ............ ::::8:77 : ..... ........................ f?obCy' : . .':1.9$: ........................................................................ >6 pJ :: - . ........ 1:1:44 .. ...... 5.:44 ..... ; 48..3:: ...................... 2 37' : ::3.62.: ............................... ...............I............... .. >4:89'.::. < :7:60::_: »> 8:26. ......... ... . ... .... 0:85: . Offf . _. 0;09 .... ..... ... ............... ,.. . ., I .Q:96 -0.46: ............:17 .. -0 43 ::.::. ... ... .. . .. .. Calendar Year Returns 03/31/2006 2006 14.5: - - - -- -- .. .. .. ... . .... .. ....._._.. -- — :A....: : -..1.. .. Ratio. Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997 Fund 2:;71. .- >.2 71 x:98 8.:33 :: 14 $7 9;90 0:84 5 74::: 7;$1 , 19::27 21..72:: a?ohcy... 2;25 2,25. ::3-,9 . 7 - 825. 1816 ::: 9.53 =3:67 .:70.:1921 :.: 11 40 , 23:66. Ltiff 0 46 :0'46 0-OT: 0 08 3 89 0 37 4.51 6.6.6-: 3 59 1b 08 1 04`i Returns in Up Markets 1 . 14.5: - - - -- -- .. .. .. ... . .... .. ....._._.. -- — :A....: : -..1.. .. Ratio. 09/30/1994 3 Yr 5 Yr 10 Yr Incept Pohcy :: ;:: 14,7: 95 3 : 18:fi: 19 0< 90.9 89--4 88.& 87:8.: Inception date is September 30, 1994 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate Returns in Down Markets 09/30/1994 3 Yr 5 Yr 10 Yr Incept t i... 1 . 14.5: Policy .. 1 8 I. :A....: : -..1.. .. Ratio. 79 3 :..:90!3: .. .4. 87.5: % ,.. . 875 Palm Beach Gardens General Employees Pension Plan Asset Allocation Through March 31, 2006 Equity 60% At Market Cash & Equiv 3% Equity 58% At Cost Cash & Equiv i� I() 3% Q Fixed Income 37% Fixed Income 39% Palm Beach Gardens General Employees' General Employees Pension Plan Universe Comparison Report Explanation The universe compares the fund's returns to a group of other investment portfolios, called a universe. Ideally the universe is comprised of many other investment funds with similar investment profiles. Comparisons are provided over many different time periods. Trailing Returns: This section focuses on longer term returns. It shows the cumulative time weighted returns and percentile rankings for the last 1 year, 2 years, 3 years, and so on up through 10 years if available. The returns for the fund, the policy and the universe percentiles are displayed. A percentile ranking of 1 is the best, and 100 is the worst. For example, a ranking of 50 means that the fund outperformed half of the universe. A ranking of 25 means the fund was in the top 25% of the universe, outperforming 75 %. Above 50 is acceptable. Above 25 is excellent. High rankings over all time periods are ideal; however, it is more important to rank highly over the longer periods rather than the shorter periods. Calendar Year Returns: This section focuses on shorter periods and gauges the consistency of performance over time. It shows the calendar year returns for the fund, the investment policy and the universe percentiles. Each full year of performance represents the return from January 1 st through December 31 st. Ideally the fund has performed well in the earlier years and in the most recent years. Watch out for a trend toward underperformance in recent periods. Note the performance in different market environments. A high policy return indicates a bull market, and a low policy return indicates a bear market. All rates of return are annualized if the period for which theyare calculated exceeds one year. Palm Beach Gardens General Employees' General Employees Pension Plan Universe Comparisons 60% Pure Lg Cap Core & 40% High Quality Bond Returns are in percent. "% -tile" is the percentile ranking within the universe Returns for periods exceeding one year are annualized. Incept is September 30, 1994 to March 31, 2006 Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 5 Palm Beach Gardens General Employees' Total Fixed income Executive Summary Account Reconciliation Trailing Returns through March 31, 2006 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 09/30/1994 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept Fund :.:. 03/31/2006 2006 09/30/1994 .. .. .......... Qtr YTD Incept 8egmnirig value 1Q7$ 1 078 453: Met Flows =14 .: :14: 23: irivestrri.ent IL`. 4 6 4:5 5::76 : Pnding:ValuE ... 656 1 057 1,057 Trailing Returns through March 31, 2006 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 09/30/1994 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept Fund :.:. 2:61. 1 41 2.27::..:.:4.fiq.. ... .. .. .......... Yr ..: 4.26: 5..12: 4:.55 ........ 4.82..`: . 5.53 ..... ....... .......... 5:32. ...... 5:99 Po' (idy: 2.38 1.8 295: :.5:47 % ?50: 6 4:5 5::76 : 5 85 :. ... 656 ............... $35 : 6:94 Diff D23 0 02 _ 0,f8 0;87 ;:?1,04 1:33 1:;21 =1 04:: 1 03 x;03 �U:9.: Calendar Year Returns 03/31/2006 2006 09/30/1994 3 Yr 5 Yr 10 Yr Incept 'Ound 8.5 3.7 8;.8 Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997 Fond 0.42 .... -0.42 : 2.65 3.16 2:8-3::::: :. 9'.23 9:24 ::6 50 Policy, -0;64 <0:64 2.34' 4:21 4 08..11 0:2;. 8:51 11:84 2.15 9;47 - 9.75 Diff .6:22 0.22 - 0:3:1. -1:05 =185 1:79 0:73 . -5.34. 0.78. =0:48 0:97 Returns in Up Markets Inception date is September 30, 1994 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Returns in Down Markets 09/30/1994 3 Yr 5 Yr 10 Yr Incept 'Ound 8.5 3.7 8;.8 - 9 7 . Policy. .10;4 1 0,5: 10:4: 11.:1:. Ratio 82.4 84.2 84.9 87.1: Inception date is September 30, 1994 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Returns in Down Markets Sawgrass assumed fixed- 10 -26 -05 $1,043,932.60 • Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 0 09/30/1994 3 Yr 5 Yr 10 Yr Incept 3.7 : 3.4 - 3:8. Poficy =3 9 .. 3.7:: <3 6 :: 4:1 :91.9 :::.101::4 93.6 0A Sawgrass assumed fixed- 10 -26 -05 $1,043,932.60 • Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 0 Palm Beach Gardens General Employees' Total Fixed Income Universe Comparisons High Quality Bond Calendar Year Returns C�tr f YTD j 2005 j 2004 1 2003 2002 2001 2000 1999 1998 Fumd Return -0.42 -0.42 2.65 3.16 2.83 9.23 9.24 6.50 -1.37 8.99 % -tile 55 55 1.7.L 61.. ... - 28 10 .- 92 _. 73. _... 13 Polley _- ..... _..__ - - . - -77 Return -0.64 -0.64 2,34 4.21 4.68 11.02 8.51 11.84 -2.15 9.47 % -tile 78 78 29 34 35 4 21 10 84 5 Universe 5th % -tile 1.00 1.00 3.37 6.19 11.51 10.87 9.85 12.37 4.61 9.45 25th % -tile 0.29 0.29 2.41 4.54 5.34 9.37 8.40 10.90 1.75 8.34 50th % -tile -0.36 -0.36 2.00 3.69 4.04 7.98 7.81 9.56 -0.45 7.26 75th % -tile -0.62 -0.62 1.57 2.13 2.90 5.51 7.00 7.70 -1.46 6.33 95th % -tile -0.90 -0.90 1.09 0.98 1.63 1.50 4.93 5.78 -3.67 4.50 Returns are in percent. " %- tile" is the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is September 30, 1994 to March 31, 2006 Sawgrass assumed fixed- 10 -26 -05 $1,043,932.60 - Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate Palm Beach Gardens General Employees' Fixed Income & Cash - Sawgrass Executive Summary Account Reconciliation Investment Policy Diff < ..:::.:::.. :...:.::.:... 0:38 Calendar Year Returns Returns in Up Markets Inception date is October 26, 2005 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Index change effective 1/112006 from LB Gov /Credit to LB Aggregate 03/31/2006 2006 10/26/2005 Qtr YTD Incept B.egihning VA tae 1 >076 1,076 1,044: filef Mows .... ......: . .. ... ..... . ... .. . :: 2 Ending Value 1,057 j 057 1,Ov7: Investment Policy Diff < ..:::.:::.. :...:.::.:... 0:38 Calendar Year Returns Returns in Up Markets Inception date is October 26, 2005 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Index change effective 1/112006 from LB Gov /Credit to LB Aggregate Palm Beach Gardens General Employees' Fixed Income & Cash - Sawgrass Universe Comparisons High Quality Bond 5th %-tile I 1.75 2.45 3.56 2.96 I 5.58 6.58 6.24 7.09 6.39 6.20 25th %-tile 0.84 0.91 2.69 2.06 3.38 5.15 5.06 6.16 5.48 5.49 50th %-file 0.15 -0.30 2.24 1.53 2.65 4.53 4.41 5.53 4.94 4.95 75th %-tile -0.14 -0.81 1.83 1.13 2.06 3.43 3.62 4.60 4.34 4.48 %-tile 55 55 95th %-tile -0 .52 1.35 ___1._33. 0.57 1.47 2.29 2.56 3 .4 5 3.54 175 Calendar Year R_ eturns Qtr YT * D I 200 - 5 2004.1 2003 I 2002 21i1 ] 2000 T. 19991 1998 - .OUnd ....... Return I -0.42 -0.42 %-tile 55 55 FoBcy . .... . ...... ....... Return -0.64 0.64 %-tile 78 78 niveme ... ......... .. .......... . ... ... ... ........... 6th %-tile 1.00 1.00 - - ------------ . ...... 3.37 6.19 11.51 ...... 10.87 9.85 12.37 4.61 9.45 25th %-tile 0.29 0.29 2.41 4.54 5.34 9.37 8.40 10.90 1.75 8.34 50th %-tile -0.36 -0.36 2.00 3.69 4.04 7.98 7.81 9.56 -0.45 7-26 75th %-tile -0.62 -0.62 1.57 2.13 2.90 5.51 7.00 7.70 -1.46 6.33 95th %-tile I 10]_ 1.19 .1 0-91 ].... 1.63.1 1.50 1 4.13 t. . 5.78 -3.17.1 4.50 Returns are in percent. "%-tile" is the percentile ranking within the universe Returns for periods exceeding one year are annualized. Incept is October 26, 2005 to March 31, 2006 Index change effective 1/1/2006 from LB Gov/Credit to LB Aggregate M Palm Beach Gardens General Employees' Total Equity Executive Summary Account Reconciliation 03/31/2006 2006 09/30/1994 Qtr YTD Incept 8:egjnnarig. V'lue 1 69$ 1;$96::: ,::.:$ �. filet rlows .. =20 20 :.. -340 .Jnvestt'nent G/L : 79 79: 1,472 Ending: Value :: 1;755 1 755 > 1,75 ,5: Trailing Returns through March 31, 2006 Calendar Year Returns 03/31/2006 2006 Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997 l :und A;G.9. 4.69 4 52'::: 11::44 22 $3 .::.:-.21,0 10 Yr -4::42 5,29 : 14.26: 09/30/1994 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept :Fund .: ?1.33...:::8.94 _. _. .. .. _ .. -.... 15* 87 _.. . 4:02 ::.. ....... . :4:00 ;:::::.2;46.:: . .. .. .. _ ..... 77-77 . ....... ... 4:63 _ _ .. _ 3.98 .::: _. 7:76 ........... 8:47 ..;: . 10:1.9: _. Policy: 11;73 .91:8. _.. .... ... 17.22:: .. ..._ .......... 4:92 _.......... .................. 3 97::..::: ...... .. -b:83 ...... _ ........ 1 6 6 . 3 62 _.. 7 81' $;95 . ....... . DifP 040 .0-24 , 1 35:.. _ 0:90 0 03 :: . 9 :.. 2;:97 :. ::0:35 .: 0 05 :: 0,40-:.:::::. _J:; Calendar Year Returns 03/31/2006 2006 Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997 l :und A;G.9. 4.69 4 52'::: 11::44 22 $3 .::.:-.21,0 10 Yr -4::42 5,29 : 14.26: .1.2.. . .9.. . 29;.08 Policy 4.21 4.21. 4 9.1 : 10.:88 28.68 :: -22:10 11:88 -9 11 21.04 28:58.-:, 33.36 aJiff 0;48 0.48 :: 0:39 b56 =5.85 1 -07: 7.46 14.40.: _6:78 16:19 4.28 Returns in Up Markets Inception date is September 30, 1994 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Rockwood assumed account 10 -26 -05 $ 1,565,898.88 10 Returns in Down Markets 09/30/1994 3 Yr 5 Yr 10 Yr Incept fund 21.3 22.5 25 8 26.5 Policy 23,0 24:2 30:0 30_ Ratio .:: .:02..6 92:9 85 9 ;. 86..5:. Inception date is September 30, 1994 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Rockwood assumed account 10 -26 -05 $ 1,565,898.88 10 Returns in Down Markets 09/30/1994 3 Yr 5 Yr 10 Yr Incept Fun -4:0 29.0 -23 2 22.4 Policy.. -4:0 31.A '-27;8' 26;0: Ratio 100;0 '92.5: 83 3 86;3: Palm Beach Gardens General Employees' Total Equity Universe Comparisons Pure Large Cap Core Trailing Returns through March 31, 2006 20.13 13.74 22.18 8.03 25th % -tile 14.13 10.65 18.66 - 1 Yr - - 2 Yr 3 Yr 4Yr-j-- 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr t`.U11GI 15.34 3.54 .• 5.23 4.69 4,52 11.44 22.83 -21.03 -4.42 5.29 Return 12.39 11.33 8.94 30 15.87 26 4.02 34 4.00 12 2.46 4.63 PtiIIC.y 3.98 7.76 8.47 % -tile 64 _ . - -. _ 53 Return 69 4.21 67 4.91 40 10.88 25 20 11.88 32 21.04 34 46 Noiiey :.....;, ............ % -tile 46 46 Return 29 11.73 48 9.18 38 17.22 lJnlver�e 4.92 3.97 -0.83 1.66 3.62 7.81 8.95 % -tile 50 7.06 46 11.33 39 15.14 39 -15.55 41 49 50 34.74 40 32 4.96 27 �lriuers� 5th % -tile 20.13 13.74 22.18 8.861 8.03 25th % -tile 14.13 10.65 18.66 5.93 4.80 50th % -tile 11.69 9.00 16.80 4.62 3.70 75th % -tile 10.88 8.05 15.34 3.54 2.62 95th % -tile 7.411 4.831 12.37 1 1.15 I -0.23 Calendar Year Returns 8.19 7.63 7.35 10.91 11.58 2.38 3.36 4.34 8.10 8.99 -0.91 1.61 3.37 7.41 8.32 -2.40 0.79 2.56 6.25 7.09 -6.54 -1.70 0.33 4.32 5.23 Returns are in percent. " %- tile" is the percentile ranking within the universe Returns for periods exceeding one year are annualized. Incept is September 30, 1994 to March 31, 2006 Rockwood assumed account 10 -26 -05 $ 1,565,898.88 11 YTD I 2005] 2004 - 2003 ] -- 2002 1... 2001 2000 1 1999 , 1998 Fund. Return 4.69 4.69 4,52 11.44 22.83 -21.03 -4.42 5.29 14.26 I 12.39 the 30 30 67 26 87 34 9 12 81 1 97 PtiIIC.y _ . - -. _ Return 4.21 4.21 i 4.91 10.88 28.68 -22.10 11.88 -9.11 21.04 28.58 % -tile 46 46 34 29 46 48 60 38 24 lJnlver�e _55 .. 5th % -tile 7.061 7.06 11.33 15.14 33.34 -15.55 -1.49 13.61 35.03 34.74 25th % -tile 4.96 I 4.96 7.20 11.51 28.99 -20.13 -9.35 -0.20 22.80 28.47 50th % -tile 4.17 4.17 5.09 10.39 27.83 -22.23 -12.08 -7.39 20.27 25.44 75th % -tile 3.53 3.53 4.22 8.38 24.97 -23.39 -13.51 -9.63 16.39 18.85 95th % -tile 1.70 1.70 1.07 5.14 20.58 -26.60 -19.10 -14.67 6.13 13.04 Returns are in percent. " %- tile" is the percentile ranking within the universe Returns for periods exceeding one year are annualized. Incept is September 30, 1994 to March 31, 2006 Rockwood assumed account 10 -26 -05 $ 1,565,898.88 11 Palm Beach Gardens General Employees' Equity & Gash - Rockwood Executive summary Account Reconciliation Trailing Returns through March 31, 2006 Investment Pol Index 03/31/2006 2006 10/26/2005 Qtr YTD Incept E3�ginnir+g `Value '1;696 1,698: 1,566:: Jet Flov✓s -20. -2© 4 :Inv eStiri:ertt G/L ;.79 : 79` 1$5 rtding Value . 1;55 (755 .... 1,755 Trailing Returns through March 31, 2006 Investment Pol Index Weight 4 59. Rohcy "100 Calendar Year Returns 03131/2006 2006 Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997 i und. 4:.6.9.. 4 59. Rohcy Riff_ 648 0.48-:: Returns in Up Markets Returns in Down Markets Inception date is October 26, 2005 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 12 Palm Beach Gardens General Employees' General Employees Pension Plan Up Market Returns 25.00% 20.000% 15,00% 10.00% 5.00% 000% [E] Fund ( %) Policy (%) Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 14 Incept -12.97 -14.83 1.86 87.46 11,00 3 Yr 5 Yr 10 Yr Incept Fund 13.36 13.72 16.47 16.67 Policy 14.70 15.34 18.58 18.99 Difference -1.34 -1.62 -2.11 -2.32 Ratio 90-88 89.44 88.64 87.78 # Up Ctrs 10.00 14.00 29.00 35.00 [E] Fund ( %) Policy (%) Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 14 Incept -12.97 -14.83 1.86 87.46 11,00 Down Market Returns 0.00% -5.00% -10.00% -15,00% -20.00% L 3 Yr 5 Yr 10 Yr Fund (%) - -1.42 -14.55 -12.97 Policy (%) -1.79 -16.11 -14.83 Difference (%) 0.37 1.56 1.86 Ratio 79.33 90.32 87.46 # Down Qtrs 2.00 6.00 11.00 [E] Fund ( %) Policy (%) Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 14 Incept -12.97 -14.83 1.86 87.46 11,00 Palm Beach Gardens General Employees' General Employees Pension Plan Objective Comparison $4,00a, $3,50 - - . - _. ...... .. . $3,00 - - .- . a: _ ...... ..........` _.. .. _. $2,500 -- p p 0 C V p p Ll Ll Ll [7 L1 a $2,00 [ 7 [ I Ll ❑ - U .. 1 -1 [7 .. [ U .. ❑ .. n $1, $1, $0',,IwwwwI -iwwww wwwIII I Iwwww"i M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 Quarter Ending Fund ;i' Policy Nominal 8% I CPI + 4% Inception date is September 30, 1994 All dollar values are shown in thousands. Index change effective 1/1/06 from 113 Gov /Credit to LQ Aggregate 15 Palm Beach Gardens General Employees' General Employees Pension Plan Attributions of Returns Report Explanation Performance attribution concentrates on evaluating the effect of the manager's decisions on asset allocation and security selection. This allows the investor to see whether the manager is adding value by adjusting the actual asset allocation or by picking individual securities. This information is valuable in helping determine the amount of freedom that might be given to the manager in regard to asset allocation ranges. The result of these skills are shown for multiple time periods. The top section shows the returns for both the account and the investment policy and the results of the manager's contribution. The fund's return is thus attributed to the policy and the manager. The bottom section divides the manager's contribution into two components: asset allocation and security selection. The asset allocation effect measures the value that was added by varying the actual asset allocation from the target allocation. This is done by assuming investments, in amounts equal to the actual asset allocation weights, were made in the policy's indices so that security selection has no effect. The difference between this return and the policy's return is the asset allocation effect. The security selection is the remainder of the manager's contribution that is not explained by asset allocation. 16 Palm Beach Gardens General Employees' General Employees Pension Plan Attribution of Returns Attribution of Performance to show Manager Contribution Asset Allocation + Security Selection = Manager Contribution Index change effective 111/06 from LB Gov /Credit to LB Aggregate 17 Policy ::;; ;:.:::?:::Manager ... .... ... .... ............. . ............................... ............................... ............................... .......................I....... ....... . Fund — Current Quarter 2.25 :::0;46 2.71 Year to Date 2.25 :: :: Q;A6 : 2.71 3 Years 11.44 :.. ':: > t1:9t :. 10.48 5 Years 4.83 4.38 10 Years 8.26: :::= 0:76 :: 7.50 Incept 9.85 ::.08'. 8.77 Policy + Manager Contribution = Fund Attribution of Manager Contribution between Asset Allocation and Security Selection Asset Allocation Security Selection Mang Er Contribution. Current Quarter -0.85 1.31 0:46 Year to Date -0.85 1.31 0;46: 3 Years -4.87 3.91 0;96 5 Years -2.26 1.81 0:45 10 Years -3.62 2.86 .. 0:76 Incept -4.37 3.29 1:Ot3 Asset Allocation + Security Selection = Manager Contribution Index change effective 111/06 from LB Gov /Credit to LB Aggregate 17 Palm Beach Gardens General Employees' General Employees Pension Plan Asset Allocation Effect 18 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 Palm Beach Gardens General Employees' General Employees Pension Plan Asset Allocation vs Targets -tl D01 Mt J02 t2 3 6 Jt3 Dt 64 J04 SO4 05 Quarter Ending Cash& Equiv Target 80.00% 70.00% . ........ .. . . ........ 60.00% ----- -- )K . ...... *---- 50.00% 40.00% 30.00% 20.00% -10.00% 0.00% J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 Quarter Ending Equity V Target 80.00% 70.00% 60.00% 50.00% 40.00% --4zz -1 A --f -4 4 --4 4 ------- � ------ 4-- -4- 30.00% 20.00%1 10.00% 0.000 LJ J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 Quarter Ending Fixed InCOIT)e Target Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 19 4.00% 3.00% 2.00% R 1.00% e t u 0.00% r n 1.00% -2.00% -3.00% Palm Beach Gardens General Employees' General Employees Pension Plan Manager Contribution _. .. -- ........... _ _.. _.. _i X1.1 _ _ _�____ -�_ ■ _ __ ■_ ■ ■ .......................... ........ ... _.. . - - - -- I J I .I. I. J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 Quarter Ending Quarterly Cumulative Growth of $100 Fund vs Policy $1351 $13( I -I $125 $1201 i I' V $115' I � I U $1051 C! L -I I 17 I o $10 $95 $85 J 5 D05 M06 M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 SO Quarter Ending [ ❑ Fund [ ) Policy I Index change effective 1/1/06 from 1-8 Gov /Credit to LB Aggregate 20 Palm Beach Gardens General Employees' General Employees Pension Flan Quarterly Comparison Analysis ($) _ Period Ending Sep 1994 Dec 1994 Mar 1995 Jun 1995 Sep 1995 Dec 1995 Mar 1996 Jun 1996 Sep 1996 ... _ Fund _...... . ..... _ 1,079 1,059 1,211 1,369 1,432 1,533 1,634 1,688 1,728 Policy 1,079 1,078 1,240 1,421 1,495 1,600 1,697 1,752 1,800 Diff 0 -20 -29 -51 -63 -67 -62 -64 -72 Nominal 8% 1,079 1,098 1,194 1,294 1,316 1,365 1,452 1,486 Diff 0 -39 17 75 116 168 182 202 210 1,518 Dec 1996 1,820 1,916 -96 1,551 270 Mar 1997 1,927 2,045 -118 1,685 242 Jun 1997 2,141 2,284 -144 1,717 424 Sep 1997 2,328 2,423 -94 1,752 576 Dec 1997 2,375 2,530 -155 1,820 556 Mar 1998 2,568 2,756 -188 1,856 712 Jun 1998 2,550 2,842 -291 1,893 657 Sep 1998 2,385 2,730 -345 1,928 456 Dec 1998 2,679 3,106 -427 2,001 678 Mar 1999 2,642 3,168 -526 2,025 617 Jun 1999 2,790 3,256 -466 2,033 757 Sep 1999 2,647 3,131 -484 2,063 584 Dec 1999 2,821 31391 -570 2,095 726 Mar 2000 2,907 3,490 -583 2,149 758 Jun 2000 2,843 3,432 1 -589 2,167 675 Sep 2000 2,926 3,436 -510 2,192 734 Dec 2000 2,945 3,324 -380 2,225 719 Mar 2001 2,846 3,104 -258 2,243 603 Jun 2001 - -- 2,927 3,183 ... .. _.__._._.. -256 _ ..._.._....._ 2,251 _.. - -- 676 ._... _ _. ......_ Sep 2001 _ __....._. ............ 2,675 2,893 -218 2,229 446 Dec 2001 2,827 3,062 -234 2,256 571 Mar 2002 2,824 3,046 -222 2,283 541 Jun 2002 2,621 2,805 -184 2,290 331 Sep 2002 2,397 2,540 -144 2,305 92 Dec 2002 2,434 2,655 -221 2,313 121 Mar 2003 2,385 2,609 -224 2,345 41 Jun 2003 2,534 2,852 -317 2,358 176 Sep 2003 2,533.... _.._.. 2.,861....... _ .... =329. _..._ . ._ _ 2,373 160 All dollar values are shown in thOUsands. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 21 CPI t 4% Diff 1,079 0 1,090 -31 1,188 23 1,286 84 1,301 131 1,338 195 1,431 203 1,461 227 ... _ ....... _. -- ._.. -.... 1,488 _ . _ 240 1,514 306 1,647 280 1,664 477 1,691 637 1,741 635 1,769 799 1,797 753 1,818 566 1,874 805 1,888 753 1,890 900 1,917 730 1,934 887 1,999 907 2,010 833 __ ..._ __...._ ._... 2,027 .. ..... ....... ........ 899 2,042 903 2,061 785 2,068 859 2,028 648 2,013 814 2,040 7831 2,038 583 2,041 356 2,024 410 2,068 318 2,050 484 2,056 477 Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis ($) Period Fund Policy Diff Nominal 8% Diff CPI + 4% Diff Ending Dec 2003 2,680 3,036 -356 2,388 292 2,035 645 Mar 2004 2,741 3,094 -352 2,424 317 2,077 664 Jun 2004 2,717 3,068 -351 2,453 263 2,105 611 Sep 2004 2,674 3,045 371 2,469 205 2,096 578 Dec 2004 2,805 3,188 -383 2,483 321 2,088 717 Mar 2005 2,745 3,112 -367 2,504 240 2,115 630 Jun 2005 2,717 3,117 -400 2,490 228 2,087 630 Sep 2005 2,740 3,148 -408 2,513 227 2,129 611 Dec 2005 2,779 3,177 -398 2,541 238 2,109 671 Mar 2006 2,812 3,206 -394 2,549 264 2,121 691 All dollar values are shown in thousands. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 22 Pala Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis ( %) -- .. - - -- ._..... Period ......... Fund - .. Policy Ending g _ ......... .... -- _--, Diff -2.89 5.03 4,97 3.40 -0.03 -._ ......_ . Dec 1994 -1.67 0.16 Mar 1995 7.15 7.82 Jun 1995 6.68 8.32 Sep 1995 4.85 5.52 Dec 1995 5.46 5.49 Mar 1996 2.64 2.24 Jun 1996 2.91 2.88 Sep 1996 2.22 2.61 Dec 1996 ............ - - - -- 5.12 - _..._ -- 6.23 Mar 1997 0.17 1.30 Jun 1997 11.16 11.79 Sep 1997 8.66 5.95 Dec 1997 0.59 3.06 Mar 1998 8.07 8.90 Jun 1998 -0.75 3.05 Sep 1998 -6.44 -3.89 Dec 1998 10.89 12.51 Mar 1999 -0.83 2.50 Jun 1999 6.80 3.77 Sep 1999 -4.78 -3.56 _ --- .... Dec 1999 ............ - 6.89 -._ _. _.. ....._ 8.60 Mar 2000 2.62 2.57 Jun 2000 -1.42 -1.02 Sep 2000 3.54 0.63 Dec 2000 0.95 -3.01 Mar 2001 -2.54 -5.93 Jun 2001 4.11 3.69 Sep 2001 -6.53 -7.20 Dec 2001 6.32 6.41 Mar 2002 0.47 0.03 Jun 2002 -5.93 -6.75 Sep 2002 -7.51 -8.45 Dec 2002 3.08 5.95 Mar 2003 -1.47 -1.24 Jun 2003 7.62 10.56 Sep 2003 1.16 7.08 1.44 7.21 Dec 2003 Diff -1.83 -0.67 -1.64 -0.67 Nominal 8% ............. 1.94 1.94 1.94 1.94 Diff -3.61 5.21 4,74 2.91 - - - -- ...... ..... ---- CPI + 4% 1.22 2.12 1,71 1.45 _ ......... .... -- _--, Diff -2.89 5.03 4,97 3.40 -0.03 1.94 3.52 1.08 4.38 0.40 1.94 0.70 2.39 0.25 0.03 1.94 0.97 1.69 1.22 -0.39 1.94 0.28 1.69 0.53 _ _-...._..... -1.11 .__ .................. _--- - - -... 1.94 _ _ ... -.__. 3.18 1.49 3.63 -1.13 1.94 -1.77 1.89 -1.72 -0.63 1.94 9.22 1.09 10.07 2.71 1.94 6.72 -1.35 1.49 0.99 7.17 -0.40 -2.47 1.94 -0.83 1.94 6.13 1.59 6.48 - -3.80 1.94 -2.69 1.49 -2.24 -2.55 1.94 -8.38 1.29 -7.73 -1.62 1.94 8.95 1.09 9.80 -3.33 1.94 -2.77 1.59 -2.42 3.03 1.94 4.86 1.69 5.11 -1.22 1.94 -6.72 1.99 -6.77 -1.71 ._.-._ _..__ .............._..._..__... 1.94 - ........ - 4.95 - -- 1.29 -- 5.60 0.05 1.94 0.68 2.69 -0.07 -0.40 1.94 -3.36 1.69 -3.11 2.91 1.94 1.60 1.69 1.85 3.96 1.94 -0.99 1.19 -0.24 3.39 1.94 -4.48 2.19 -4.73 0.42 1.94 2.17 2.09 2.02 0.67 1.94 -8.47 1.18 -7.71 -0.09 __._........_..._... - ............ 1.94 -- - - 4.38 .....- _......_... _ .. - .._... -- 0.09 .._ - ...... - - -... 6.23 0.44 1.94 -1.47 2.19 -1.72 0.82 1.94 ' -7.87 1.69 -7.62 0.94 1.94 -9.45 1.59 -9.10 -2.87 1.94 1.14 0.98 2.10 -0.23 1.94 -3.41 2.80 -4.27 -2.94 1.94 5.68 0.69 6.93 -0.28 1.94 -0.78 1.79 -0.63 -0.13 1.94 5.14 0.49 6.59 Returns for periods exceeding one year are annualized. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 23 Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis (%) Period 0.73 2.59 0.08 Ending Fund Policy Diff Mar 2004 2,67 2.25 0.42 Jun 2004 -0.24 -0.25 0.01 Sep 2004 -0.38 0.30 -0.68 Dec 2004 6.17 5.82 0.35 Mar 2005 -1.19 -1.54 0.35 Jun 2005 1.32 2.21 -0.89 Sep 2005 1.75 1.79 -0.04 Dec 2005 2.07 1.50 0.57 Mar 2006 2.71 2.25 0.46 Incept. .......... . 8.77 ....... 9.85 -1.08 Returns for periods exceeding one year are annualized. Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 24 CPI 4 4% Nominal 8% Diff, 1 '1 -1 , D-iff 1.94 0.73 2.59 0.08 1.94 -2.18 2.19 -2.43 1.94 -2.32 1.08 -1.46 1.94 4.23 1.18 4.99 1.94 -3.13 2.59 -3.78 1.94 -0.62 1.69 -0.37 ............ - 1,94 -0.19 . ............ 3.20 -1.45 1.94 0.13 -0.01 2.08 1.94 0.77 . .. ........ 2.59 0.12 8.00 0.77 ................ ... . . ......... .. 6.54 2.23 Palm Beach Gardens General Employees' General Employees Pension Plan Risk Measures Report Explanation The evaluation of a fund's performance should extend beyond return to encompass measures of risk. The next two pages are used to determine the level of risk to which the fund has been exposed, and whether the return has been commensurate with the risk taken. All measures are calculated for both the fund and the policy as well as the difference between the two. Up to four time periods are evaluated depending on the age of the fund. # Of Negative Qtrs /# Of Positive Qtrs: Number of negative quarters shows the number of quarters in which the return was less than zero, and the number of positive quarters is the number of quarterly returns which were greater or equal to zero. Batting Average: The batting average is a measure of consistency. It shows the percent of the quarters the fund has beaten the policy and the percent of the quarters the policy has beat the fund. A high average for the fund (e.g. over 50) is desirable, indicating the fund has beaten the policy frequently. Worst Quarter /Best Quarter /Range: The worst quarter is the lowest quarterly return experienced during the period, a measure of downside risk. The best quarter is the highest quarterly return, and the range is the difference of the high and low, and indicates dispersion. Standard Deviation: Standard deviation measures the total volatility of the fund, by measuring dispersion. Higher standard deviation indicates higher risk. If the quarterly or monthly returns are all the same the standard deviation will be zero. The more they vary from one another, the higher the standard deviation. Thus, it measures uncertainty, which is a measure of risk. Alpha /Beta /R- Squared: If the policy is appropriate, then the alpha should be positive, the beta close to one, and the r- squared should be high. Beta measures risk relative to the policy. A beta of 1 suggests risk equivalent to the policy. Higher betas indicate higher relative risk. A beta of 1.2 indicates 2.0% more risk than the policy. The alpha measures the return adjusting for beta. The higher the alpha, the better. R- squared measures the relationship between the policy and the fund. A high r- squared means the returns of the fund can largely be explained by movements of the policy. The higher the r- squared, the more reliable the alpha and the beta. R- squared may range from 0 to 100. Beta, alpha and r- squared are derived from regression analysis using the fund and policy returns as the dependent and independent variables respectively. Roughly, one would expect the fund's performance to equal the return of the policy multiplied by the beta plus the alpha. Sharpe Ratio / Treynor Ratio: The Sharpe and Treynor ratios are similar. The Sharpe ratio is the excess return per unit of total risk as measured by standard deviation. The Treynor ratio is the excess return per unit of market risk as measured by beta. Both of these should be compared against the corresponding value for the policy. Higher numbers are better, indicating more return for the level of risk that was experienced. 25 Palm Beach Gardens General Employees' General Employees Pension Plan Risk Measures Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 26 # of Negative Qtrs 3.00 2.00 1.00 # of Negative Qtrs 7.00 6.00 1.00 # of Positive Qtrs 9.00 10.00 -1.00 # of Positive Qtrs 13.00 14.00 -1,00 Batting Average 50.00 50.00 0.00 Batting Average 55.00 45.00 10.00 Worst Qtr -1.19 -1.54 0.35 Worst Qtr -7.51 -8.45 0.94 Best Qtr 7.62 10.56 -2.94 Best Qtr 7.62 10.56 -2.94 Range 8.81 12.10 -3.29 Range 15.13 19.01 -3.88 Worst 4 Qtrs 3.98 3.97 0.01 Worst 4 Qtrs -11.63 -10.68 -0.95 Standard Deviation 5.78 5.64 0.14 Standard Deviation 6.96 7.92 -0.96 Beta 0.96 1.00 -0.04 Beta 0.83 1.00 -0.17 Annualized Alpha -0.45 0.00 -0.45 Annualized Alpha -0.01 0.00 -0.01 R- Squared 0.88 1.00 -0.12 R- Squared 0.89 1.00 -0.11 Sharpe Ratio 1.47 1.67 -0.20 Sharpe Ratio 0.32 0.34 -0.02 Treynor Ratio 8.82 9.43 -0.61 Treynor Ratio 2.70 2.69 0.01 Tracking Error 2.06 0.00 2.06 Tracking Error 2.66 0.00 2.66 Information Ratio -0.47 Information Ratio -0.17 �.. un i Polley Diff: w. Incept _. _ . _._w __ Fund _..._-�_ Poilcy - piff:. .._ .. _.. .. ........ # of Negative Qtrs 13.00 11.00 2.00 # of Negative Qtrs 14.00 11.00 3.00 # of Positive Qtrs 27.00 29.00 -2.00 # of Positive Qtrs 32.00 35.00 -3.00 Batting Average 45.00 55.00 -10.00 Batting Average 41.30 58.70 -17.40 Worst Qtr -7.51 -8.45 0.94 Worst Qtr -7.51 -8.45 0.94 Best Qtr 11.16 12.51 -1.35 Best Qtr 11.16 12.51 -1.35 Range 18.67 20.96 -2.29 Range 18.67 20.96 -2.29 Worst 4 Qtrs -11.63 -12.21 0.58 Worst 4 Qtrs -11.63 -12.21 0.58 Standard Deviation 8.28 9.39 -1.11 Standard Deviation 7.99 9.01 -1.02 Beta 0.81 1.00 -0.19 Beta 0.80 1.00 -0.20 Annualized Alpha 0.09 0.00 0.09 Annualized Alpha 0.09 0.00 0.09 R- Squared 0.85 1.00 -0.15 R- Squared 0.83 1.00 -0.17 Sharpe Ratio 0.46 0.49 -0.03 Sharpe Ratio 0.60 0.66 0.06 Treynor Ratio 4.70 4.57 0.13 Treynor Ratio 6.04 5.91 0.13 Tracking Error 3.66 0.00 3.66 Tracking Error 3.76 0.00 3.76 Information Ratio -0.21 Information Ratio -0.29 Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 26 Palm Beach Gardens General Employees' General Employees Pension Plan Return vs Risk through March 31, 2006 13.00% 12.00% S &P 500 11.00% 10.00% A n n U 9.00% a ( Fun I I z 8.00% e d R e 7.00% t I B Gov /Corp U r n 6.00% ,5.00% 4.00% ;t 3 Mo l Bill 3.000/ I 6.00% 5.00% 10.00% 15.00% Risk (Annualized Std Dev) Policy Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 27 20.00% Palm Beach Gardens General Employees' General Employees Pension Plan Return vs Risk through March 31, 2006 3 Years 25.00% 20.00% R 15.00% e r 10.00% n s 5.00% Fund S &H 500 3 Mo TBill L6 Gov /Corp 0.00% I - _ I _L I_ _I - - - -L -- -- I - J- 1.00% 3.00% 5.00% 7.00% 9.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% Risk (Annualized Std Dev) 10 Years 10.00°/, 9.00%, S &P 500 8.00° /, Fund R /.00% P, t 1 u 6 00% 1 B Gov /Corp r n g 5.00% 4.00% 3 Mo TBill 3.00% , I 5.00% 15.00% 25.00% 0.00% 10.00% 20.00% Risk (Annualized Std Dev) Policy Index change effective 1 /1/06 from L.B Gov /Credit to LB Aggrewle 28 5 Years 13.00% 6.00% 12.00% 5..50% 11.00% { S &P 500 5.00% f; LB Gov/Corp R 9.00% R 4.50% e e X F and t 4.00% I / -00% u i S &P 500 r s 6.00% n 3.50% 4.00% s 3 Mo I -Bill 3.00% 5.00% 10.00% 15.00% 20.00% 2.50% Risk (Annualized Std Dev) 2.0000 { °� Me T@101 - - 1 .0 0 % 10.I 00% 15.00% 20.0001C Risk (Annualized Sid Dev) Inception 13.00% 12.00% 11.00% { S &P 500 10.00% R 9.00% e Fund t 8.00% U I / -00% i n LB Gov /Corp s 6.00% 5.00% 4.00% f 3 Mo I -Bill 3.001/8.()0% 5.00% 10.00% 15.00% 20.00% Risk (Annualized Std Dev) Palm Beach Gardens General Employees' Policy: First Objective: Second Objective Universe Data: General Employees Pension Plan 09/30/1994-12/31/2005 01/01/2006-03/31/2006 09130/1994-03/-11/2006 09/30/1994-03/31/2006 60.00 S &P 500 40.00 Lelunan Gov /Credit Bond 60.00 S &P 500 40.00 Lehman Aggregate Bond Annual Return of 8.00% 100.00 US Consumer Price Index •i 4.00 annual adder 60% Pure Lg Cap Core & 40% High Quality Bond 09/30/1994 - 03/31/2006 40.00 High Quality Bond 60.00 Pure Large Crap Core 4 29 Bogdahn Consulting, 1.1,C. PORTFOLIO APPRAISAL Pahn Beach Garden General Empliqees' Coutbined'Account March 31, 2006 (Excluding Reinvested Divs.) thlif Total Market Pei, Quantity Security Cost Cost MCC Valtic Gain/Loss Assets DOME 19TIc r,.Q FJf*Fws* Common Stock Urge Cap 925.000 A nac Inc. 47.23 43,690.71 45.13 41,745.25 -1,945.46 1.5 650.000 BOEING CO COM 64.47 41,906.41 77.93 50,654.50 8.748.09 1.8 140.000 Canadian PaeifiC I.Ad 41.53 5,814.20 49.97 6,995.80 1,181.60 0.2 760,000 Caterpillar ]tie 49.83 37.871.18 71.81 54,575.60 16,704.42 1.9 2,865.000 Goodyear Tire & Rubber 15.38 44,050.81 14.48 41,485.20 -2.565.61 1.5 600.000 Halliburfon Co. 55.46 36,602.41 73.02 48,193.20 11,590.79 1.7 (A0.000 Lockheed Mailin Coilt. 00.12 38,478.59 75.13 48,083.20 9,604.61 1.7 425.000 Loews Corp. 89.82 38,172.27 101.20 43,010.00 4,837.73 1.5 1.165.000 MEDIMMUNE INC 35.32 41,147.80 36.58 42,615.70 1,467.90 1.5 COM 1,075.000 PG &- E C-orp. 35.89 38,583.79 38.90 41,817.50 3,233.71 1.5 1,720.000 Safeway Im. COM 22.29 38,341.72 25.12 43.206.40 4,864.68 1.5 1.340.000 Texas Instruments 33.48 44,859.98 32.47 43.509.80 -1.350.19 1.5 960.000 walpt-cell Co. 44.05 42 292.40 43.13 41,404.80 -887.60 1.5 491,812,27 547,296.95 55,484.63 19.5 Mid (all 610.000 APACHE CORD COM 61.14 37,290.50 65.51 39.961.10 2.664.60 1.4 1,430.000 Adi•an Inc. 31,37 44.855.38 26.17 37,423.10 -7,432.28 1.3 1040.000 Apartment Inveillmy L 36.91 38,390.08 46.90 49.776.00 10385,02 1.7 Management CO - Rcit 1,195.000 Chasapeake Energy 31.29 37.391.67 31.41 37,534.95 143.28 1.3 C01-11. 3,240,000 Ef I'm Corp 11.72 37,972.80 12.05 39.042.00 1.009,20 1.4 920.000 FISERY INC COM 43.76 40,259.57 42.55 39.146.00 -1.113.57 1.4 1,355.000 I-ICC bistiraim- 28.00 37045.69 34.90 47,154.00 9,208.31 L7 Holdings Inc Coill 970.000 Henry Schein lac. 45.52 44,158.09 47.80 40.424.20 2,266.11 1.7 1,065.000 Indymac Bancorp Inc 35,78 38,105.70 40.93 43,590,45 5,484.75 1.6 860,000 MCKESSON 11130C 45.92 39,488.79 52.13 44.831.80 5.343.01 1.6 INC COM 575.000 Priccl Rowe Assoc Inc 67.51 38.819.00 79.21 44,c)70.'15 6.1 S 1.75 1,6 Com 935.000 Proice-five U11c Corp. 41.74 39,022.51 49.74 46,506.90 7,484.39 1.7 2,705.000 Swgile'rmhnolopy 13.81 37.356.05 26.33 71,222.65 33,866,60 2.5 Holdings 560.000 Simon PP-FY Group Inc. 69.08 39.124.80 84.14 47:118.40 8.993.60 1.7 655.000 Slericycle hic 63.44 41,554.44 67.62 44,291.10 2,736.66 1.6 1,855.000 *rD Ameritride I-II(Ig 21.46 39,815.16 20.87 39,713.85 -1,101.31 1.4 Ctlip1mus Ameritradc 111d 630,557.13 716.707.25 86.150.12 25.5 Small Cap 070.000 Filil Isaac and Company 44.36 43.03 1,92 39.62 38,431.40 -4.600-52 1.4 Inc. 1.105.000 Landstal. Sysicills Inc. 37.15 41.046.43 44.12 48,752.60 7.706 17 1 1,350.000 Performance Food 27.61 37,279.98 31.19 42.106.50 4,826.52 1.5 Group 815.000 Precision Camparls 46.02 37.510.29 59.40 48,411.00 10,900.71 1.7 Coll). 2 Bogdalm Consulting, LLC. PORTFOLIO APPRAISAL Palm Beach Garden General Employees' Combined Account Marc* 3I, 2006 (Excluding Reinvested Divs.) Unit Total Market Pei. Quantity Security Cost Cost Price Value Gain/Loss Assets 1,366.*660 Sunrise Senior Living 34.46 44,800.99 38.97 50,661.00 5,860.01 1.8 Inc. 885.000 Swin E-Oci-gy Co 42.44 37.557.54 37.46 33,152.10 -4,405.44 1.2 1.620.000 T-I-IQ Inc. 27.20 44,069.18 25.89 41.941.80 -2,127.38 1.5 1A45.000 VCA Anlecli bic 28.86 41,707.04 28.48 41.153.60 -553.44 1.5 327,003.37 344.6 10.00 17,606.63 12.3 1,449,372.77 1,60$.614.20 159,241.43 57.2 1,449,372.77 1,608,614.20 159.241.43 57.2 INTERNATIONAL EQUITIES Foreign Stock Foreign 900.000 Canadian Pacific 44.44 40,000.32 49.97 44,973.00 4,972.68 1.6 Rlil%s,,iy [Ad. NEW 915.000 Volvo Aktictiolkiget 40.05 37.194.02 46.02 42,657.30 5,463.28 1.5 ADR Cl. B 77,194.34 87,630.30 10,435.96 3.1 77,194.34 .. . ....... 87,630.30 10.435.96 3.1 77,194.34 87,630.30 10,435.()f, 3.1 FIXED INCOME Corporlic 13oll(k 25,000 SBC Communicalions 100.55 25,136.25 100.03 25,007.60 -128.65 0.9 Inc. No(c 5.750% Due 05-02-00 25.000 Chase Manhattan Corp 102.76 25,68X.75 101.414 25,369A8 -319.28 0.9 7.125% Due. 02-01-07 50.000 Calcipilhif Finalicial 99.99 49,992.50 99.50 49.751.85 -240.65 1.8 Services 4,875% Due 0(i -15 -07 45.000 Men•ill Lunch & Co. 103.41 46,536.30 102.03 45.914.63 -621.68 1.6 6.560% 6iie 12-16-07 25.000 Wells Fargo &- Co 97.50 24,375.25 97,30 24.325.18 -50.08 0.9 4.000% Due 08-15-08 50,000 merill Lynch &- Co 103.86 51928.00 10265 51.325.25 -602-75 1.8 6.375% Duc 10 -15 -08 35.000 John Decre Cap %.93 33,925.50 9596 33.587.26 -338.24 1.2 3.750% Due 0l -13 -09 40,000 Morgan Stanley 94.42 37,769.60 93.30 37.319.72 -449.88 1.3 4.750% Due 04-04•14 20,000 Anficuser Busch Cos Inc. 95.58 19.115.80 93.61 18,721.72 -394.08 0.7 4.025% Due 02-01-15 50.000 BellSouth Capiial 102.25 51.125.00 100.39 50.192.35 -932.65 1.8 Funding. 0.040% Duc 11 -15 -26 40.000 First Union Corp 107.09 42,834.40 103.87 41.548.90 -1,285.60 1.5 6.180% Due 02-15-36 408,427.35 403,063.92 -5,363.53 143 Accrued Infere-m 6,897.58 0.2 408.427.35 409,961.41 -5.363.53 14.6 2 3 Elogdahn Consulting, L1,C- PORTFOLIO APPRAISAL Palm Beach Garden General Enjp1qVeev' Combined Account March 31, 2006 (Excluding Reinvested Divs.) Unit Total Market Pct. Quantity Security Cost Cost price Value Gabi/Loss Assets Govemillent Bonds 0 FNMA 0.00 0.00 97.63 0.00 0.00 0.0 3.800% Due 01-18-08 50,000 FNMA 99.16 49,579.00 98.75 49,375.00 -204.00 1.8 4.500% Doe 08-04-08 40,000 FNMA 96.95 38,780.80 97.38 38,950.00 169.20 1.4 3.875% Due 08-15-08 100,00(1 96.50 96,496.00 96.13 96,125.00 -371.00 3.4 3.755% Due 03-18-09 150,000 FNMA 97.88 146.826.50 97.22 145,828.13 -998.38 5.2 6.500% Due 06 -01 -10 50,000 US treasury Note 98.75 49,376.96 97.66 48,832.05 -544.91 1.7 4.250% DLIC 10-1.5-10 5(1,000 US ri-emstuy Note 96.59 482293.95 95.26 47.630.85 -663.10 1.7 4.250% Due 08-15-15 25,000 UNITED STATES 114.72 28,679.69 111.58 27,894.53 -795.17 TREAS BDS 0.000% Due 02-15-26 50,000 1,C1111"Sce Valley. 111.11 55,556.00 107.09 53,544.75 -2,011.25 1.9 Atilliorily 5.880% Due 04-01-36 513,588.90 508.180.30 -5,408.60 18.1 Accrued Interest 7,097.27 0.3 . .............. . 513,589.90 515,277.57 -5.408.00 18.3 I-1-11MC 58.561 I'HI.M(* Pool 002021 98.86 57,892.57 97.49 57,089.96 -802.62 2.0 5.000% Due 10 -01 -20 Accrued Interest .. ...... ...... ........... 244.00 0.0 57,892.57 57,333.96 -802.62 10 FN \4 A 49j029 FNMA Pool #256060 101.39 49,711.26 100.04 49,046.83 -664.43 1.7 0.000% Due 01-01-36 Acemcd Interest 245.15 .. ........ .... 0.0 49,711.26 49,291.98 -664.43 1.8 1.029,620.07 1031.804.91 -12,239.16 36.7 CASH &, EQUINI. Money Markets 84.125 Goldman Sachs 1.00 84:125.05 1.00 84.125.05 0.00 3.0 rin.Sq.Ti-casury Oblib. A(Imin - --------- ... ........... . ......... - - - .. . ......... .. ........... . 84,125.05 84,125.05 0.00 3.0 84,125.05 84.125.05 0.00 3.0 TOTAL PORTFOLIO 2,640,312.23 2,812,234.46 I57,438.23 100.0 3 Aogdalln Consulting, LLC. CONTRIBUTIONS /WITHDRA WALS Mahn Beach Garden Genera! Employees' Combined Account From 0.1-01-06,7'o 03 -31 -06 Trap Trade Settle Broker Code Date Dale Security Amount Quantity Code Commission CONTRIBUTIONS ti 01 -04 -06 01 -04 -06 Cash 7.309.19 Received to cover monthly Ixnnefit payments ti 01 -04 -06 01 -04 -06 Cath 4,872.80 Received to cover monthly benefit payments li 01 -13 -06 01 -13 -06 Cash 592.97 EE 1i 01 -17 -06 01 -17 -06 Cash 355.78 Transfer from account 80105112 ti 01-17 -06 01 -17 -06 Cash 237.19 Transfer from account 801051 12 1i 01 -23 -06 01 -23 -06 Cash 573.09 EE li 01 -25 -06 01 -25.06 (:'ash 19,848.00 IR ti 01 -27 -06 01 -27 -06 Cash 286.54 Iransfer between accounts Ii 01 -27 -06 01 -27 -06 Crash 286.55 Transfer ill to reinvest contributions li 02 -09 -06 02 -09 -06 Cash 1,349.06 -transfer fivtn account 5108 1i 02 -09 -06 02 -09 -06 Cash 899.38 Transfer fi-onl account 5109 Ii 02- 15.06 02 -15 -06 Gash 580.55 EE ti 02 -16-06 02 -16 -06 ('ash 348.33 Transfer for investment of conlrihmions ti 02 -16 -06 02 -16 -06 Cash 232.22 Transfer betwee ll accounts ti 02 -24 -06 02 -24 -00 Cash 2.492.10 Transfer ti 02 -24 -06 02 -24 -00 Cash 1,661.40 Transfer' li 02 -27.06 02 -27-06 Gash 573.09 EE li 03 -01 -06 03 -01 -06 Cash 10.915.25 Transfer li 03 -01 -06 03 -01 -06 Cash 7,276.84 Transfer li 03 -14 -06 03 -14 -06 Cash (A7.88 EE li 03 -14 -06 03 -14 -06 Crash 3(14.73 Fransfer for investment 6 03.14 -06 03 -14 -06 Cash 243.15 Transfer for investnlem li 03 -24 -06 03 -24 -06 Gash 573.09 EE Ii 03- 27 -06 03 -27 -06 Cash 343.85 Transfer flor investment ti 03 -27 -06 03 -27 -06 Cash 229.24 Transfer for investlllcnl 63,052.27 Bogdahn Consulting, LIX. CONTRIBUTIONS/WITHDRAWALS Palm Beach Garden General F.mphyees' Combined Account From 01 -01 -06 To 03 -31 -06 Trau Trade Settle Code Date Dale Security Amount WITHDRAWALS 10 01 -03 -06 01 -03 -06 Crash 16,962.71 Benefit payments to 01 -03 -06 01 -03 -06 Cash 1,802.47 W!H lax on benefit payments t0 01 -04 -06 01 -04 -06 Cash 7,309.19 Trdnsfe• to account 801051 12 to corer benefit payments to 01 -04 -06 01 -04 -06 Cash 4,872.80 Transfer to account 80105112 In 01 -09 -06 01 -09 -06 Cash 288.45 Custodial fee: to 01 -17 -06 01 -17 -06 Cash 355.78 Tlansfcr to Rockwood Capital account to 01 -17 -00 01 -17.06 Cash 237.19 Transfer to Sawgriss account 10 01 -27 -06 01 -27 -06 Cash 286.54 Transfer to Rockwood Capital account to 0127 -06 01 -27 -06 Cash 286.55 Transfer to Sawgra ss accounl to 01-31 -06 01-31 -06 Cash 34.00 forcigtl lax witbhekl 10 02 -01 -06 02 -01 -06 Cash 16062.71 Benefit payments lo (12 -01 -06 02 -01 -16 Cash 1,802.47 W/11 lax on benefit payments to 02 -08 -06 02-08 -06 Cash 2,000.00 HC for period ending 12/31/05 4, 02-08 -06 02 -08 -06 Cash 2,180.59 C1uailerly management fee In Rockwood capitill U.) 02 -09 -06 02 -09 -06 Cash 1,349.06 Transfer t0 R/D account to 02 -09 -06 02 -09.06 Cash 899.38 Transfer to R/D account to 02 -16 -06 02-16 -06 Cash 348.33 Transfer to account 5108 to 02 -16 -06 02 -16 -06 Cash 232.22 Transfer to account 5109 to 02 -23 -06 (12 -23 -06 Cash 743.50 C &D 10 02 -23 -06 02 -23 -06 Crash 3.410.00 NO, 1: 10 02 -24 -06 02 -24-16 Cash 2,492.10 Transfer 10 1111) account to 02 -24 -06 02 -24 -06 Cash 1,661.40 Transfer to R1D account to 03 -01.06 03 -01 -06 Cash 16.971.88 Benefit Payments to 03 -01 -06 03 -01 -06 Cash 1.793.30 Federal w/h on benefit payments to 03 -01 -06 03 -01 -06 Cash 10.915.25 Transfer to R/D account to 03 -01 -06 03 -01 -06 Cash 7,276.84 Transfer to acct 51 12 2 Broker Quantity Code Commission Bogdalm Consulting, LLC. CON'I'R IBU'1'IONS /WITI-IDRA WALS Palm Beach Garden General Employees' Combined Account From 01 -01 -06 7o 03 -31 -06 Tran Trade Selde Code Date Date Security to 03 -14 -06 03 -14 -06 Cash <Ih 01 -09 -06 TI- allsfer to a/c 5108 to 03 -14 -06 03- 14.06 Cash dl, 01 -17 -06 Transfew to a/c 5109 lo 03 -27 -06 03 -27 -06 Crash Transfer to a/c 5108 to 03 -27 -06 03 -27 -06 Cash 'I'lxmsfer to a/c 5109 EXPENSE ACCOUNTS AFTER FEE PERFORMANCE EXPENSE. ACCOUNTS (11) 01 -09.06 01 -09 -06 Administration Fee Custodial fee <Ih 01 -09 -06 01 -09 -06 Administration Fee. Quartufly custodial ree dl, 01 -17 -06 01 -17 -06 AdministntionFee Management fce to Sawgrass Asset Mgt PORTFOLIO NET TOTAL EXPENSE ACCOUNTS PAID BY CLIENT AFTER FEE PERFORMANCE EXPENSE, ACCOUNTS PAID 13Y CLIENT GRAND TOTAL. 9 Amount 364.73 243.15 343.85 229.24 104,655.68 - - -- -0.0(1 1.80 459.75 675.00 -42,739.96 0.00 0.00 - 42,739.96 Broker Quantity Code Commission Palm Beach Gardens General Employees' Pension Plan First Quarter 2006 R 0 C K W 0 0 D CAPITAL ADVISORS 1401 S. Brentwood Blvd. Suite 400 - St. Louis, Missouri 63144 - (886) 962 -8336 (toll -free) (314) 962 -1254 (lax) Palm Beach Gardens General Employees' Pension Plan First Quarter 2006 Total Fund Portfolio Summary Equities 97% Change this Quarter: $57,193 Change in Market Value Net Dividends /Interest $6,148 Contributions $1,916 Disbursements ($22,559) Net Realized & Unrealized (G /L) $71,689 Portfolio Summary Short -Term nds 15% 10% 5% 0% Total Fund Performance 1 st Qtr. 2006 N Palm Beach GE Since Inception' S &P 500 10/25/05 Inception R 0 C K W 0 0 D CAPITAL ADVISORS 1 Palm Beach Gardens General Employees' Pension Plan First Quarter 2006 Market Environment • This latest quarter represents a much better launch to the new year than one year ago when the equity market stumbled "out of the gate" and declined 2.2% in the first quarter of 2005. Leadership continues to be concentrated within the more cyclical areas of the equity market: machinery, energy, aerospace /defense, metals, etc. Your portfolio holds important positions in most of those groups. As the Fed continues in its strategy of gradually boosting interest rates, the more interest -rate sensitive groups such as home building and electric utilities are increasingly faltering. We expect those trends to continue and have positioned your portfolio in line with that expectation. While many investment gurus have been highlighting the virtues of owning the large -cap issues for some time (two to three years), their market performance continues to lag the mid- and small -cap segments which are apparently buoyed by an alternative thinking of other investors who have identified better money- making opportunities in the mid -and small -cap areas. While even these trends will change at some point, we are not anticipating it in the near future. As such your portfolio weighting has been concentrated more within the mid -cap segment. R 0 C K W 0 0 D CAPITAL ADVISORS 2 Equity Characteristics March 31, 2006 Characteristics Sector Weighting 38 1.0 1.2% 48% 39% 13% Top 10 Holdings 1. Seagate Technology 4.1% 2. Caterpillar 3.1% 3. Canadian Pacific Railway Ltd. 3.0% 4. Sunrise Senior Living 2.9% 5. Boeing Co. 2.9% 6. Apartment Invt & Mgmt 2.8% 7. Landstar System Inc. 2.8% 8. Precision Castparts 2.8% 9. Halliburton Co. 2.7% 10. Lockheed Martin Corp 2.7% R 0 C K W 0 0 D CAPITAL ADVISORS 3 Equity Transactions First Quarter 2006 Sold Jan Rockwell Collins Inc. Jan Centerpoint Energy Inc. Jan Teco Energy Inc. Feb Entcrgy Corp. Mar Schering- Plough Corp. " Mar Sprint Nextel Corp. Mar Murphy Oil Corp. Mar Baxter International Inc. Bought Jan Henry Schein Inc. Jan THQ Inc. Jan Adtran Inc. Feb Fair Isaac Corp. Feb Sunrise Senior Living Inc. Mar TD Amentrade Holding Corp. Mar Medimmune Inc. Mar VCA Antech Inc. Mar Stericycle Inc. ` R 0 C K W 0 0 D CAPITAL ADVISORS 4 Equity Holdings -- March 31, 2006 &" 4 R 0 C K W 0 0 D CAPITAL ADVISORS CASH 59 1.00 NA 58,507:98 1.00 58,507.98 3.334 2779.13 1239.77 4.75 ADTRAN INC 1,430 31.37 0.57 44,854.95 26.17 37,423.10 2.133 501.47 1.34 AFLAC INC 925 47.23 0.61 43,690.99 45,13 41,745.25 2.379 48424 1.16 APACHE CORP 610 61.14 0.20 37,296.99 65.51 39,961.10 2.277 0.60 APARTMENT INVT & MGMT CO -A 1,040 36.91 0.44 38,390.98 46.90 48,776.00 2.780 2487.58 5.10 BOEING CO 650 64.47 0.54 41,906.02 77.93 50,654.50 2.887 769.95 1.52 CANADIAN PACIFIC RAILWAY LTD 1,040 44.05 NA 45,815.02 49.97 51,968.80 2.962 644.41 1.24 CATERPILLAR INC 760 49.83 0.73 37,871.03 71.81 54,575.60 3.110 725.86 1.33 CHESAPEAKE ENERGY CORP 1,195 31,29 0.95 37,392.03 31,41 37,634.95 2.139 236.47 0.63 EL PASO CORP 3,240 11.72 0.83 37,973.12 12.05 39,042.00 2.225 511.45 1.31 FAIR ISAAC CORP 970 44.36 0.77 43,032.01 39.62 38,431.40 2.190 76.86 0.20 FISERV INC 920 43.76 0.24 40,260.03 42.55 39,146.00 2.231 0.00 0.00 GOODYEAR TIRE & RUBBER CO 2,865 15.38 0.65 44,051.09 14.48 41,48520 2.364 0.00 0.00 HALLIBURTON CO 660 55.46 0.47 36,602.02 73.02 48,193.20 2,746 385.55 0.80 HCC INSURANCE HOLDINGS INC 1,355 28.00 0.79 37,945.96 34.80 47,154.00 2.687 414.96 0.88' HENRY SCHEIN INC 970 45.52 0.35 44,157.99 47.86 46,424.20 2.646 0.00 0.00 INDYMAC BANCORP INC 1,065 35.78 0.94 38,106.02 40.93 43,590.45 2.484 1865.67 4.28 LANDSTAR SYSTEM INC 1,105 37.1[5 0.08 41,046.00 44.12 48,752.60 2.778 112.13 0.23 LOCKHEED MARTIN CORP 640 60.12 0.61 38,478.98 75.13 48,083.20 2.740 769.33 1.60 LOEWS CORP 425 89.82 0.17 38,172.01 101.20 43,010.00 2.451 249.46 0.58 MCKESSON CORP 860 45.92 0.56 39,488.96 52.13 44,831.80 2555 201.74 0.45 MEDIMMUNE INC 1,165 35.32 0.52 41,148.03 36.58 42,615.70 2.429 0.00 0.00 P G & E CORP 1,075 35.89 0.68 38,584.01 38.90 41,817.50 2.383 1405.07 3.36 PERFORMANCE FOOD GROUP CO 1,350 27.61 0.54 37,279.98 31.19 42,106.50 2.400 0.00 0.00 PRECISION CASTPARTS CORP 815 46.02 0.60 37,509,97 59.40 48,411.00 2.759 96.82 0.20 PROTECTIVE LIFE CORP 935 41.74 0.90 39,022.97 49.74 46,506.90 2.650 734.81 1.58 SAFEWAY INC 1,720 22.29 0.91 38,342.07 25.12 43,206.40 2.462 341.33 0.79 SEAGATE TECHNOLOGY 2,705 13.97 NA 37,789.12 26.33 71,222.65 4.059 0.00 0.00 SIMON PROPERTY GROUP INC 560 68.08 0.61 38,125.02 84.14 47,118.40 2.685 1696.26 3.60 STERICYCLE INC 655 63.44 0.19 41,553.99 67.62 44,291.10 2.524 0.00 0.00 SWIFT ENERGY CO 885 42.44 0.50 37,557.98 37.46 33,152.10 1.889 0.00 0.00 Sunrise Senior Living Inc 1,300 34.46 0.06 44,800.99 38.97 50,661.00 2.687 0.00 0.00 T ROWE PRICE GROUP INC 575 67.51 0.12 38,819.00 78.21 44,970.75 2.563 634.09 1.41 TD AMERITRADE HOLDING CORP 1,855 21.46 0.30 39,814.98 20.87 38,71185 2.206 0.00 0.00 TEXAS INSTRUMENTS INC 1,340 33.48 0.64 44,859.98 32.47 43,509.60 2.480 156.64 0.36 THOINC 1,620 27.20 0.36 44,069.02 25.89 41,941.80 2.390 0.00 0.00 VCA ANTECH INC 1,445 28.86 0.02 41,707.04 28.48 41,153.60 2.345 0.00 0.00 VOLVO AB-SPONSORED ADR 915 40.65 NA 37,194.02 46.62 4?,65710 2.431 1016.31 4.49 WALGREENCO 960 44,05 0.15 42,292.03 43.13 41,404.60 2.360 248.43 0.60 I 11 111 1 . &" 4 R 0 C K W 0 0 D CAPITAL ADVISORS Economic Environment & Outlook March 31, 2006 A In the first quarter, the Federal Reserve raised the federal funds rate an additional 50 basis points to 4.75 %. The fed funds futures contract, the best predictor of Fed policy moves, indicates that another increase in May is a virtual certainty. In addition, with the economy showing few signs of slowing, the odds of further rate increases have been growing. ® The Fed must remain on guard against the prospect of rising inflation expectations. The persistence of high headline inflation and a tighter labor market has finally started to feed through into wages. In September 2005, average hourly earnings had risen by 2.7% on a year- over -year basis, but by February 2006 the rate had climbed to 3.5 %. ® The U.S. experienced average employment growth of 165,000 jobs per month in 2005. Since the end of 2004, the unemployment rate has dropped from 5.4% to the current 4.8 %. The labor market still appears to be tightening, putting upward pressure on wages and inflation. ® Housing has been a significant source of growth in the U.S. economy. Not only have the direct effects of housing construction provided a major boost, but consumer spending has been elevated due to the high level of cash -out refinancing and home equity lending. An increase in long -term interest rates is likely to put the brakes on housing and could slow consumer spending. �a A swing in the inventory cycle is likely to provide significant stimulus for the economy in the first half of 2006. The inventory -to -sales ratio, a measure of business stocks of inventories relative to business sales, is at historically low levels. This has been an excellent indicator of strong near -term economic growth. A We have become less defensive from a duration standpoint, and our portfolios maintain durations near their respective benchmarks. While another Fed rate hike to 5% is highly likely, the end of this tightening cycle is in sight. However, the interest rate outlook will be driven by the economic data releases over the next several months. &1 4 R 0 C K W 0 0 D CAPITAL ADVISORS 6 Proxy Voting Record Wafgreen Co. WAG Mgmt . Oate Rec Cast Voted, Elect Director Bernauer N/A For 960 01/11/06 Elect Director Foote N/A For 960 01111/06 Elect Director Howard N/A For 960 01/11/06 Elect Director McNally N/A For 960 01/11/06 Elect Director Reed N/A For 960 01/11/06 Elect Director Rein N/A For 960 01111/06 Elect Director Schwartz N/A For 960 01/11/06 Elect Director Schwemm N/A For 960 01/11/06 Elect Director Skinner N/A For 960 01/11/06 Elect Director Ferstel N/A For 960 01/11/06 Elect Director C. Walgreen, III N/A For 960 01111/06 Ratify Auditors N/A For 960 01/11/06 Amend Stock Option Plan N/A For 960 01/11/06 ROCKW00D CAPITAL. ADVISORS Performance Evaluation for Palm Beach Garden General Employees Pension Plan Rockwood & Sawgrass For the Period Ending March 31, 2006 Presented by: Bogdahn Consulting, LIC Palm Beach Gardens General Employees' General Employees Pension Plan Executive Summary Report Explanation The Executive Summary provides an overview of the fund's performance. It shows the performance in dollars, percent, and relative to the investment policy. These are provided over different time periods including up and down markets. All rates of return are annualized if the period for which they are calculated exceeds one year. Account Reconciliation: This section shows the performance of the account in dollars, during the most recent quarter, the calendar year, and since the inception date. The Beginning Value is the value at the start of each period. The Ending Value shows the value as of the date of the report. Net contributions are the total contributions less the total withdrawals during the period. The Investment G/L is the gain or loss resulting from the investments. It is the difference between the beginning and ending values that cannot be explained by the net contributions. Positive investment G/L figures represent a profit, and negative values represent a loss. Investment Policy: This section defines the benchmark against which the fund is being compared. Generally, this is the most important objective for a fund to achieve. The performance of the fund relative to this measure over longer periods of time, such as market cycles, is the strongest indicator of the success or failure of the investment strategy. This objective should be reasonable, and the performance of the fund should be measured against the investment policy after adjusting for risk. Trailing Returns: This section shows the cumulative time weighted returns over the last 1 year, 2 years, and so on up through 10 years if available, as well as since the inception date. A positive difference indicates the fund has exceeded the policy's returns. The investor would prefer that this difference be positive for all time periods; however, it is more important for it to be positive for the longer periods rather than the shorter periods. Calendar Year Returns: This section gauges the consistency of performance over one year time periods. Each calendar year of performance represents the return from January 1st through December 31st. Watch out for a trend of declining relative performance in recent periods. Returns In Up /Down Markets: This section shows how the fund performed in both up and down markets. The methodology is to segregate the performance for each time period into the quarters in which the market, as defined by the policy, was positive and negative. Quarters with negative policy returns are treated as down markets, and quarters with positive policy returns are treated as up markets. Thus, in a 3 year or 12 quarter period, there might be 4 down quarters and 8 up quarters. Up market returns are calculated for the fund and the policy based on the up quarters. Down market returns are calculated for the fund and the policy based on the down quarters. The ratio of the fund's return in up markets to the policy's is the up market capture ratio. The ratio of the fund's return in down markets to the policy's is the down market capture ratio. Ideally, the fund would have a greater up market capture ratio than down market capture ratio. Palm Beach Gardens General Employees' General Employees Pension Plan Executive Summary Account Reconciliation 03/31/2006 2006 09/30/1994 Qtr YTD Incept ..... I............I .... ..... :$egiRni rig:: Value..'::::; . ....... .......................- ::; >Y77�::; :: : r7......... ....... > :'::1;�i'9: :Net FI w................. :: _:: : .........4... s ... l ....................... ............... . ........ >:> ::: 2: >:: .... -4... . >:: >: ::- .......... .... ..........eni � ..........::::::..... ..... . ..:..:.:. ............................... . Y .- . ....... 9....1......•......•..•......,$ .�...• .......... . ...... •.... ;...?..::::::::. ......::.....: . �.... . Trailing Returns through March 31, 2006 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr Investment Policy Index Weight s& ....00....o.00 :Lbh ... *' Aggregate; :Bond;:::: .:: :::.:._., >. :::: 4t?; Q17 ............ .. 09/30/1994 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept ......:::::::::::::::::: 14u ..................:.. • ::. • - ;: .................. •... ... ...........:......,;:::.... • •..... ...... : ::::......::;:::;:..;: 4.......... x.... :::..... ...... :.:::::.:::..:::::::::: ... '::fib:::::::::::: •:::..•.:::. ............... 7.5U... ::::::.:::::::8:77 . Y .- . -.... � 9$ :: � :: fi09:::;.- ...3...44...•....5 44 4:x.3 � 3� .::..� 6 . 4:89 :� 69 �:::.$:26 -:�:. :: � 85 21.35: ,6 >: ?:: btt.J6:9C ::. '0:45 : ` >1 34.. 1 17 -0.43 0 5� rO;F : -1:Oi Calendar Year Returns 03/31/2006 2006 Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997 U►1 >:: >:: >::.2;71: :.. 2.71 3.98: ........ 8.33 ' _-- ........... . 14:87 I .................- -9 90 . ,> t} g4.:.. -.-- .5;74 - 7 $1 — - 11.27: -- -- 21:72 P611 cy ": ..... 2 25 2.25 3.97 8.25 18:76 4 53 `: -1-8.67'. -0:92 11-.40 21.35: 23.66 .. ............. ::....:::.....:. 0 46 0:46 ...:: 0 D1 08 :..... 3:$y 037. ;... 4 51.: ...... 6 6 -3 59 -:10 08 Returns in Up Markets 09/30/1994 3 Yr 5 Yr 10 Yr Incept wild 13.4 � �^ . 16.5 . _7:3:0 Policy 14 7.. 15 3.:... 18.6 19.0 Rgtio..... ::90 9. .•.... .; :.$9:�} :.:..:.: :.88.6 .. .....7 ....... Inception date is September 30, 1994 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate Returns in Down Markets 09/30/1994 3 Yr 5 Yr 10 Yr Incept :Fund . 1 <4 V =14.5 13:0 _7:3:0 Poiiy< -1.8 -16.1 -14 8 `14;8 Ratio ::::.. .. :: 79.3 90 3 87:5. : :: :.:87:5 Palm Beach Gardens General Employees Pension Plan Asset Allocation Through March 31, 2006 Equity 60% �0 At Market Cash & Equiv 3% Equity 58% At Cost Cash & Equiv 8 I[) 3% 3 Fixed Income 37% Fixed Income 39% Palm Beach Gardens General Employees' General Employees Pension Plan Universe Comparison Report Explanation The universe compares the fund's returns to a group of other investment portfolios, called a universe. Ideally the universe is comprised of many other investment funds with similar investment profiles. Comparisons are provided over many different time periods. Trailing Returns: This section focuses on longer term returns. It shows the cumulative time weighted returns and percentile rankings for the last 1 year, 2 years, 3 years, and so on up through 10 years if available. The returns for the fund, the policy and the universe percentiles are displayed. A percentile ranking of 1 is the best, and 100 is the worst. For example, a ranking of 50 means that the fund outperformed half of the universe. A ranking of 25 means the fund was in the top 25% of the universe, outperforming 75 %. Above 50 is acceptable. Above 25 is excellent. High rankings over all time periods are ideal; however, it is more important to rank highly over the longer periods rather than the shorter periods. Calendar Year Returns: This section focuses on shorter periods and gauges the consistency of performance over time. It shows the calendar year returns for the fund, the investment policy and the universe percentiles. Each full year of performance represents the return from January 1 st through December 31 st. Ideally the fund has performed well in the earlier years and in the most recent years. Watch out for a trend toward underperformance in recent periods. Note the performance in different market environments. A high policy return indicates a bull market, and a low policy return indicates a bear market. All rates of return are annualized if the period for which theyare calculated exceeds one year. Palm Beach Gardens General Employees" General Employees Pension Plan Universe Comparisons 60% Pure Lg Cap Core & 40% High Quality Bond Retums are in percent. "% -tile" is the percentile ranking within the universe Returns for periods exceeding one year are annualized. Incept is September 30, 1994 to March 31, 2006 Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 5 Palm Beach Gardens General Employees' Total Fixed Income Executive Summary Account Reconciliation 03/31/2006 2006 09/30/1994 Qtr YTD Incept .. .... .. .. ........... ............ .. ........... ........ . ........... ... I ....... . ..... . .. . R.6 .. ..... . ... ........... ...... .. ....... Nibt:F 16M� ..... ....... .. ... ..... .... ... . . .. ............ 5 Yr .... ..... . ....... . ..... .. . ..... .. ....... ... . I .... ............ . ... 1A . ............ I .......... . . . . .. ........... . ...... .......... . ...... .... ........ ..... .. . ..... .... ................ . .................. . ..... .... ........ ........ .............. .. ............. ...... .......... ....... .......... ......... . Investment Policy Trailing Returns through March 31, 2006 03/31/2006 . ....... ........... .. 09/30/1994 3 Yr 5 Yr 10 Yr Incept 1 an.6 ....... .. -3*.7 3.4.. .... ...... ... Qtr YTID 09/30/1994 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept q.. .... : 1 4 . ... ... ... ..... . ........ x:32;'.:.:.:;:::::.5.:89 ..... .................. .2 3.8a., 1:30 ........... ........ ......... - . ............. ...... .... .. - ...... ................ 4 ..... ..... ...... Dlff 0,23 . ... . ..... . ......... . �00 .... .... ... ...... ......... .... .. .... ... .. ......... ... - ----- ......... ... . ...... .......... .... .... ..... . ...... . . ... .. .. ....... ...... ........... � 5 ............. ... Calendar Year Returns Returns in Up Markets 03/31/2006 2006 09/30/1994 3 Yr 5 Yr 10 Yr Incept 1 an.6 ....... .. -3*.7 3.4.. .... ...... ... Qtr YTID 2005 2004 2003 2002 2001 2000 1999 1998 1997 . ... ... ... ..... . ........ .. .... ... :6 01 ,15 . : . 3 7. . ::s*8:0-� T �., - Policy 'G.64: :--0.-64:- .... ....... :.::.2,34*'.:. 4.21':: -X 468 1:1.02 8-51: -11.*84 - 5.: 9-47. .:9.75. blff : 0 -.-22 0 .2 -0.81 ------------------- A::0.6 . 1:85- . ... T9 ... :1 -. 5.34. :0.18. -�- 0.48 ... "O W Returns in Up Markets Inception date is September 30, 1994 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Returns in Down Markets ...... . 09/30/1994 3 Yr 5 Yr 10 Yr Incept 1 an.6 ....... .. -3*.7 3.4.. .... ...... ... 8�Asw .. . .. ...... .... . ........ 84,2:: '::::m'.80wo ..... ............ ::::::871: Inception date is September 30, 1994 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Returns in Down Markets Sawgrass assumed fixed- 10-26-05 $1,043,932.60 - Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate ...... . . .... 09/3011994 3 Yr 5 Yr 10 Yr Incept 1 an.6 ....... .. -3*.7 3.4.. ..319 Ra fib 91: 9: .......... 93.6. 93.4 Sawgrass assumed fixed- 10-26-05 $1,043,932.60 - Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate Palm Beach Gardens General Employees' Total Fixed Income Universe Comparisons High Quality Bond Trailing Returns through March 31, 2006 41 60 311 1 7 19 17J .............. ..... ......... ............................ .. . ...... .... ..... r 5 Yr 6 Yr 7 Yr 8 Yr . 9 Yr 10 Yr ....... ........ ..... ....... . ................. ..... .. ... ..... ... . ................. ................. ....... ................... .... ........... .. ........ I .................. .............. ..... . . . .. .......... .. ............ ....... ............................ Return 5.15 5.06 . ... .... 1.41 50th %-file . . 2.27 ........................... 2.65 4.53 4.41 5.53 .... ..... 5.12 1.83 1.13 4.8 5.53 5.32 %-tile 30 1.33 58 1.47 67 2.56 47 .............. 5� 62 66 5� 53 59 _777:17-171:7 ................ ........... I ........ ......... I ......... .. .. ... ..... ........ . ... ........... . ...... ... ... ... .................... ........... ........ . ........... ............. ....... .26 ................... ............ ............... .............. ......... ....... ....... . ..... ............. .... .. ............. .......... ... . .... . . . ....... ............. .......... . ...... � ........ .. , .. ....... .... . .... . . ................ ................. . ............ ................... Return J__ 2.381 I ........... 1.39 T 5T .47 5.30 6.45 5. �6 5.86 6.�T6 6.35 %-file 41 60 311 1 7 19 17J .............. ..... ......... ............................ .. . ...... .... ..... 1. ................................. .......... ...................... ... ............ ....... .... 6th %-tile .......................................................... 3.56 2.96 5.58 6.58 6.24 7.09 25th %-tile 2.69 2.06 3.38 5.15 5.06 6.16 50th %-file 2.24 1.53 2.65 4.53 4.41 5.53 75th %-file 1.83 1.13 2.06 3.43 3.62 4.60 95th %- til e 1.33 0 5 7 1.47 2.29 2.56 3.45 17 12 10 14 ......... ... ......... I .. ..... .. ..... .. .. . ............ ........ .. . . ... . ....... ... ........... ........ .... ..... ........ ..... ..... . ... . . . ............... .......... I ........... ... I .......... 6.-3-961 - _62_ -OF __6_._9_8T685"_ 5.48 5.49 4.94 4.95 4.34 4,48 6.17 5.59 4.85 3.54.1 3.751 4.10 6.07 5.52 4.85 4.28 25th %-tile 0.29 0.29 2.41 4.54 5.34 9.37 8.40 10.90 1.75 8.34 50th %-file -0.36 -0.36 2.00 3.69 4.04 7.98 7.81 9.56 -0.45 7.26 75th %-tile -0.62 -0.62 1.57 2,13 2.90 5.51 7.00 7.70 -1.46 6.33 95th %-tile -0.90 -0.90 1.09 0.98 1.63 1.50 4.93 5.78 -3.67 4.50 Returns are in percent. "%-tile" is the percentile ranking within the universe. - --------- ------- Returns for periods exceeding one year are annualized. Incept is September 30, 1994 to March 31, 2006 Sawgrass assumed fixed- 10-26-05 $1,043,932.60 - Index change effective 111/06 from LB Gov/Credit to LB Aggregate 7 Palm Beach Gardens General Employees' Fixed Income & cash - Sawgrass Executive Summary Account Reconciliation Trailing Returns through March 31, 2006 Investment Policy Index Weight iota( ::.::.:..:.:::.:: :.::.:: >::_:::::.:::............10 00: 10/26/2005 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept :uriitl 03/31/2006 2006 10/26/2005 Qtr YTD Incept $t;grn�irig::Vltle x,070 1r(i7f ::; 1,044 . ......... . .Plows .. ....... ...... :. . ................ .... hvestrneni QtL .:. .. .._. 4 ... .. ...4 .. ... . . .. i 1 rdiri 'Value 9....... 1 057 %' ......... 1 057 .............. Trailing Returns through March 31, 2006 Investment Policy Index Weight iota( ::.::.:..:.:::.:: :.::.:: >::_:::::.:::............10 00: 10/26/2005 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept :uriitl 1.05 Pti(iy . :. <: 0 67 .... . ::........... 0 3B Calendar Year Returns Returns in Up Markets Returns in Down Markets Inception date is October 26, 2005 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Index change effective 1/1/2006 from LB Gov /Credit to LB Aggregate V3 Palm Beach Gardens General Employees' Fixed income & Cash - Sawgrass Universe Comparisons High Quality Bond Trailing Returns through March 31, 2006 % -tile r, v., 5th % -tile 25th % -tile 50th % -tile 75th % -tile 95th % -tile 1.75 2.45 0.84 0.91 0.15 -0.30 -0.14 -0.81 -0.52 -1.35 Calendar Year Returns _ � _ ...- .... - ......__ _ -- 3.56 2.96 5.58 6.58 6.24 7.09 6.39 6.20 2.69 2.06 3.38 5.15 5.06 6.16 5.48 5.49 2.24 1.53 2.65 4.53 4.41 5.53 4.94 4.95 1.83 1.13 2.06 3.43 3.62 4.60 4.34 4.48 1.33 0.57 1.47 2.29 2.56 3.45 3.54 3.75 Calendar Year Returns YTD I 2005 2004 2003 2002 l 2001 20001 19991 1998 u...... .... . - - Return -0.42 -0.42 % -tile 55 55 poUcy ::.......: ___._.._..._.._.__,._....._� ....__......_ ... ........ _._. Return -0.64 -0.64 % -tile 78 78 Universe 5th % -tile 1.00 1.00 3.37 6.19 __. 11.51 _.._._._. 10.87 _ .. _ _ -. - __ -- 9.85 -- -. - -- .... -- 12.37 - .....-----__._ 4.61 _. �._. _ ....... _ 9.45 25th % -tile 0.29 0.29 2.41 4.54 5.34 9.37 8.40 10.90 1.75 8.34 50th % -tile -0.36 -0.36 2.00 3.69 4.04 7.98 7.81 9.56 -0.45 7.26 75th % -tile -0.62 -0.62 1.57 2.13 2.90 5.51 7.00 7.70 -1.46 6.33 95th % -tile -0.90 -0.90 1.09 0.98 1.63 1.50 4.93 5.78 -3.67 l 4.50 Returns are in percent. " %- tile" is the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is October 26, 2005 to March 31, 2006 Index change effective 111/2006 from L8 Gov /Credit to LB Aggregate I Palm Beach Gardens General Employees' Total Equity Executive Summary Account Reconciliation 03/31/2006 2006 09130/1994 Qtr YTD Incept giriri Value:::.::' ......... .:; >::` ::x.;696::. ......... :. ?::6Z?: llt.:Flows.: >...:.:.. `::': `:' :::::''::'= 2t7:;: >::.:< ':: =20:.; :.::::; ...... = ,3;40: iraGestftl.6rit G1L. :::... `: <;; <`'�9.....:.:::: 79::: <;::: >:1;:d72 Eiidiri;g Vlu' :;:::.:: >::::> . <;a755::: < ::;:::x;755.:'::: ": <::1,7: Trailing Returns through March 31, 2006 Investment 09/30/1994 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept Calendar Year Returns 03/31/2006 2006 Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997 :Fund 4.69 4.69 4 52 �: 11 ?�4 :4 00 x;46 4:63 1 9II ' - -7:76' 8:47 10.19 Policy ::. 11:73 918.:::::::: 17.22 492 3.97 -0.83 1.66 3.62 7.81 $:95 11,213 Diff D 4{? 0 24 1 35 . 0 9th 0 03 29 2;97 0 0 36 05 . -0.48 1 0g:. Calendar Year Returns 03/31/2006 2006 Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997 :Fund 4.69 4.69 4 52 �: 11 ?�4 , -2 83 -21.03 4.42 5 29 - 14 2G 12.39 29108 Policy ::. 4 21 .::4.21. 4,9T . 14 88 28.68 - 22.10 11.88 -9.11 21:04 28:513 33.36 :Diff 0 483 0.48 0 39 0 5.6 5.85 1 47 ..7.46 14.40.: 6 78.16 19 4 28: Returns in Up Markets 09/30/1994 3 Yr 5 Yr 10 Yr Incept ud 21 3 09/30/1994 3 Yr Rohcy. 23,0: 24-2:1.:. t=und : -4:6 - 29.0 aZatio. 92 6:. .. 92:9. 85.9.. 86:5:: Inception date is September 30, 1994 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Rockwood assumed account 10 -26 -05 $ 1,565,898.88 10 Returns in Down Markets 09/30/1994 3 Yr 5 Yr 10 Yr Incept t=und : -4:6 - 29.0 23.2 22 4< Poficy -4:0 -31.4 .: 27:8 26;0 Ratjo: 100;0 92.5 83,3 Palm Beach Gardens General Employees' Total Equity Universe Comparisons Pure Large Cap Core Trailing Returns through . . . �...._ ....... .I ..... . .M.......a.... r..c...h ... ..3... 1..... , . ..2006 ... .......... . . r 2 Yr L . .r . .. ..... . .I . ............... ..... ............ ........ . . .............. . ....................... ...7.....Y...r . ..... .............. ..r .�_ -: .... .... ........... .. . .. ... r- ................... ......... . ....... n . . ........ ... .... .. ........... ............................. ... I .. ............ I ................ 4.00 2.46 4.63 3.98 7.76 8.47 11. 33- j__8.'9j__1 5. 87 T,,---- -, I Return ... ... 71 4.02 95th %-tile 1.41 4.831 12.37 1.1,5� -0.23I -.- 6.54.1 -. -1 70.. . 0.33 [_ 4.32 1 _5.23 - [ - .. _[_ _ .- - .. . ... ....... . ...... __. 1 1- 1—- Calendar Year Returns Returns are in percent. "%-tile" is the percentile ranking within the universe Returns for periods exceeding one year are annualized. Incept is September 30, 1994 to March 31, 2006 Rockwood assumed account 10-26.05 $ 1,565,898.88 11 ./1 Qt - YTD J 2004 2_0027[.. 2001 1 ... .. ...... 20001 - -1-9991-- Return 4.69 4.69 4.52 11.44 22.83 -21.03 -4.42 5 14 .26 12.39 % -W e 30 30 67 26 87 34 9 12 11 97 :0 ....... ..... Return 4 .2 1 4.21 10.88 28.68 0 --------- - -11.88 -9.11 '21.04 28.58 %-tile 46 ....... 46 ------- 5 34 9 46 48 60 38 24 ......... . ......... nly.er'�;e: .... ... . ..... ...... ..... - -- . ... .... .. . ..... . .. .......... ... .... 5th %-tile 7.06 7.06 11.33 15.14 33.34 -15.55 -1.49 13.61 35.03 34.74 25th %-tile 4.96 4.96 7.20 11.51 28.99 -20.13 -9.35 -0,20 22.80 28.47 50th %-tile 4.17 4.17 5.09 10.39 27,83 -22.23 -12.08 -7.39 20.27 25.44 75th %-tile 3,53 3.53 4.22 8.38 24.97 -23.39 -13.51 -9.63 16.39 18.86 95th %-tile 1.70 1.70 1.07 5.14 20.58 -26.60 -19.10 -14.67 6.13 13.04 Returns are in percent. "%-tile" is the percentile ranking within the universe Returns for periods exceeding one year are annualized. Incept is September 30, 1994 to March 31, 2006 Rockwood assumed account 10-26.05 $ 1,565,898.88 11 Palm Beach Gardens General Employees' Equity & Cash - Rockwood Executive Summary Account Reconciliation Investment Policy 03/31/2006 2006 10126'2005 Qtr YTD Incept Index .............. ..... ....... ... - .0., .. .. . ..... ....... - , - — .... . .. . ....... .... . . ..... ..... ............ ..... .......... . ......... I ..... .. .......... . ............ .... .. ....... . . . ..... ...... ........... .. - . . . .. ... ............ ....... .... ............. ........ ... .......... ..... ..... ............... ...... ....... . . .... .... : ... .... ................. .... ......... ........ ..... . ...... ....... .......... Brad' . . .... . ............. . ... ....... .... ... . . . .......... .......... ....:I .4 . ..155 . ........ . . .. . . . ... .. . . — ... . . Trailing Returns through March 31, 2006 I--**,-- 1 Yr 2 Yr 3 Yr 4 Yr 6 Yr Weight ........................... ..... ........... .............. .. ........ ..... .. . . ...... .. ......... ....... .......... ... ......... ..... $&F.500. ....... . .... .... . . .. ............... ........... — ..... ....... I ........ ........ ... ....... . ... . ............... ............... - .................................. . . .... . . .... ... ..................... .......... . ............................ '' * ........................ ............... ................. .. ...... . ..... . . .. ............... ... ...... ..... ..................... .............. ... ............................ ................................................. ... ............ ........ ......... ............ ... ... ........ ........... .......... . . . ......... ..... ....... ....... I .......... ................... ... ..... ................................ --- .. .................... ........................ .. ... .. .. .. .. .... ..................................... .. ............. . . ..... . ... . ................. ..... 40 . DO 0 ...... ... . . .. . .............. ..... .... . . . ....... ..................... .. I .. ...... ..................... ........ .. 10/26/2005 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept Fiii . .. ....... ..... ....... ... .... .. .... ......... ........ ... . . ... ........... .. ....... ............ ............ ..................................... ...... ... . . ......... ..... ............ ...... . .............. . ........... ............ .... . . ........... ............ ..... ..... .. ....... .. . ... ....... ...... ........ .......................... . . ............. ........ .... ...... ........... ... ..... ... ... ...... ...... ......... ...... I ... .... ....... ......... .. .. . .......... ...... . . ...... .... .. .. ..... ........... ......... .. ....... . ........ . ... .... I .... .. ........... ........ Calendar Year Returns ........ ... 03/31/2006 2006 Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997 Returns in Up Markets Returns in Down Markets Inception date is October 26, 2005 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 12 ..... ........ . ........ . .... ....... .. .... . . . .. ....... .. .. .. . ..... . ........ . ........... .................. .. . . .... . . .... ... .... ...... . ...... .. ............. * ........ ... .. . ....... Returns in Up Markets Returns in Down Markets Inception date is October 26, 2005 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 12 Palm Beach Gardens General Employees' General Employees Pension Plan 25.00% Up Market Returns,----.----- 20.00% - - - - 15.00% -- - - - - - -- .._ -__ 10.00% - - -- - -- 5.00% - - 0.00% - - 3 Yr - -- -- 5 Yr 10 Yr Incept Fund ( %) 13.36 13.72 16.47 - 16.67 Policy ( %) 14.70 15.34 18.58 18.99 Difference ( %) -1.34 -1.62 -2.11 -2.32 Ratio 90.88 89.44 88.64 87.78 # Up Ctrs 10.00 14.00 _ 29.00 35.00 Down Market Returns I 5.00`%. - 10.00% - 15.00% - - 20.00% 1 Fund ( %) -- 3Yr 5 Y - -- 10 Yr - � - Incept -1.42 -14.55 -12.97 -12.97 -- Policy ( %) -1.79 -16.11 -14.83 -14.83 Difference ( %) 0.37 1.56 1.86 Ratio 79.33 90.32 87.46 1.86 87.46 # Down Qtrs 2.00 6.00 11.00 11.00 [j Fund ( %) Policy ( %) Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 14 Palm Beach Gardens General Employees' General Employees Pension Plan Objective Comparison $4,000, - -- - $3,50 + X _.. I ... ........__ ....... .. $3,00 ........... W ;i )K - ---I $2,5011, �� I ._..._........_..� -�..r- l..r l.. _ .. U �, 0 - © 0 . U 4 v a $2,00 El u e $1,50 $1,00 , M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 Quarter Ending Fund :i' Policy Nominal 8% I CPI + 4% Inception date is September 30, 1994 All dollar values are shown in thousands. Index change effective 1/1/06 from l B Gov /Credit to LB Aggregate 15 Palm Beach Gardens General Employees' General Employees Pension Plan Attributions of Returns Report Explanation Performance attribution concentrates on evaluating the effect of the manager's decisions on asset allocation and security selection. This allows the investor to see whether the manager is adding value by adjusting the actual asset allocation or by picking individual securities. This information is valuable in helping determine the amount of freedom that might be given to the manager in regard to asset allocation ranges. The result of these skills are shown for multiple time periods. The top section shows the returns for both the account and the investment policy and the results of the manager's contribution. The fund's return is thus attributed to the policy and the manager. The bottom section divides the manager's contribution into two components: asset allocation and security selection. The asset allocation effect measures the value that was added by varying the actual asset allocation from the target allocation. This is done by assuming investments, in amounts equal to the actual asset allocation weights, were made in the policy's indices so that security selection has no effect. The difference between this return and the policy's return is the asset allocation effect. The security selection is the remainder of the manager's contribution that is not explained by asset allocation. 16 Palm Beach Gardens General Employees' General Employees Pension Plan Attribution of Returns Attribution of Performance to show Manager Contribution - -- — - -- Policy _... - - - - - -.- ;:::::;:: ............. ; ;.;Matiager:CoritriW.tigri:: >. �...._...... .... :; Fund Current Quarter 2.25 :: ... ..:.:Q46:: > 2.71 Year to Date 2.25 : < ::Q;A6': 2.71 3 Years __... 11.44 _...__..._..---...... ........ `:: . ..........- - ;._.........:. '.::0:9 .... ., .... . . . ....... —: _ _: -_ �_ ___..._. 10.48 S Years 4.83 :: .::0.45;. _...__.._. -- - ._...__.. —._.. _ 4.38 10 Years _........- - -.... .._.... -- - _. 8.26: _ _..__...— _..__.._. ....... := (...... . . . . . . . . . . . . . . . . .... . ...................... 7.50 Incept 9.85 :.:.::.:.: .:.:::::..:.:..:.:...:::...... ...... 8.77 Policy + Manager Contribution = Fund Attribution of Manager Contribution between Asset Allocation and Security Selection Asset Allocation + Security Selection = Manager Contribution Index change effective 111/06 from LB Gov /Credit to LB Aggregate 17 Asset Allocation Security Selection :; Wh6gec Cizrifrit anti ri Current Quarter -0.85 1.31 > 0.46 Year to Date -0.85 1.31 3 Years _._..... __... -4.87 _..... _ _ ._ . ..... ..... ..... . 3.91 - :.:.:p;g. ........... . 5 Years -2.26 1.81 -- 10 Years -3.62 2.86 Incept -4.37 3.29 Asset Allocation + Security Selection = Manager Contribution Index change effective 111/06 from LB Gov /Credit to LB Aggregate 17 Palm Beach Gardens General Employees' General Employees Pension Plan Asset Allocation Effect 5.00% ---- .... --l- - - - -- 4,00% ....... ............................ - ...... ....................... p3.00% ......................... ............... . ....... r2.00% ....... . ..., ...................... c e1.00% .... ........... ......... .......... n t 0.000% E -1.00% ... -- .... .. f I f -2.00% ........... c -3.00% ...................... t -4.00% .....••............................... -5.00% 1A4 D01 lyfuz )04 S02 UVZ M03 J03 bUJ L)UJ MU4 JU4 504 D04 M05 JOS S05 D05 M06 Quarter Ending Security Selection Effect 15.00% - ------ 4.00% ...... p3.00% . ................... .............. e r, 2.00% ..... . ...... .. .... C WIN, e 1.00% n t 0.00% E -1.00% f f -2.00% e................ c-3.00% . ........ ............ -4.00% ..................... . .. ........ -5.00% 1 1 1 -_ I I . I ...... J01 801 D01 M02 J02 S02 002 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J06 S06 D06 M06 Quarter Ending Quarterly Effect 'Cumulative Effect Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 18 80. 70. 60. 50. 40. 30. 20. 10. 0. 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 80 70 60 Palm Beach Gardens General Employees' General Employees Pension Plan Asset Allocation vs Targets J 1 St D01 M02 J02 S02 D02 M03 J03 St D 3 M04 J04 Quarter Ending Cash & Equiv Target ... ............ . - k: )K- J01 S01 D01 M02 102 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 Quarter Ending l ® Equity { l-argei' 40.00 % .av_— - +: - - 4.- A- - f,�•---- -:� - -- 4:. - - - - --- - - -:- � _.. _,- .._.._:�, - _. - -- - - - -�< 30.00% 20.00% 10.00°/ 0.00% J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 MOE Quarter Ending [_] Fixed Income } Target Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 19 Palm Beach Gardens General Employees' General Employees Pension Plan Manager Contribution 4.00% 3.00% 2.00% R1.00% ........_ ............................ e t u 0.00% r •n - 1.00% _. _._...... -_ _ . _ . ... 11, ................... - - 2.00% _. ....... . . . . .. . - 3.00% -. I _ J01 $01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 Quarter Ending fQuarterly Curnulative 1 Growth of $100 Fund vs Policy $13 $13011 _.. .. $125. $120 I - V H Li n a $110 i u $1051 .. $10 L1 b $85' - M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 MO( Quarter Ending (❑ Fund L] Policy Index change effective 111/06 from I. B Gov /Credit to LB Aggregate 20 Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis ($) All dollar values are shown in thousands. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 21 Fund Policy Diff Norninal 8% Diff CPI + 4% Diff Endo g . ------- ._..... __ - - -- - _ Sep 1994 1,079 1,079 0 1,079 0 1,079 0 Dec 1994 1,059 1,078 -20 1,098 -39 1,090 -31 Mar 1995 1,211 1,240 -29 1,194 17 1,188 23 Jun 1995 1,369 1,421 -51 1,294 75 1,286 84 Sep 1995 1,432 1,495 -63 1,316 116 1,301 131 Dec 1995 1,533 1,600 -67 1,365 168 1,338 195 Mar 1996 1,634 1,697 -62 1,452 182 1,431 203 Jun 1996 1,688 1,752 -64 1,486 202 1,461 227 Sep 1996 1,728 1,800 -72 1,518 210 1,488 240 Dec 1996 1,820 1,916 -96 1,551 270 1,514 306 Mar 1997 1,927 2,045 -118 1,685 242 1,647 280 Jun 1997 2,141 2,284 -144 1,717 424 1,664 477 - - - -- _..._ Sep 1997 - -- 2,328 - - ..... - 2,423 - _._._ .. -- -94 - - - -.. ....... 1,752 -- 576 1,691 _. 637 Dec 1997 2,375 2,530 -.155 1,820 556 1,741 635 Mar 1998 2,568 2,756 -188 1,856 712 1,769 799 Jun 1998 2,550 2,842 -291 1,893 657 1,797 753 Sep 1998 2,385 2,730 -345 1,928 456 1,818 566 Dec 1998 2,679 3,106 -427 2,001 678 1,874 805 Mar 1999 2,642 3,168 -526 2,025 617 1,888 753 Jun 1999 2,790 3,256 -466 2,033 757 1,890 900 Sep 1999 2,647 3,131 -484 2,063 584 1,917 730 Dec 1999 2,821 3,391 -570 2,095 726 1,934 887 Mar2000 2,907 3,490 -583 2,149 758 1,999 907 Jun 2000 2,843 3,432 -589 2,167 675 2,010 833 Sep 2000 2,926 3,436 -510 2,192 734 2,027 899 Dec 2000 2,945 3,324 -380 2,225 719 2,042 903 Mar 2001 2,846 3,104 -258 2,243 603 2,061 785 Jun 2001 2,927 _ .. 3,183 - -256 2,251 676 2,068 859 __.. - Sep 2001 .. 2,675 2,893 -218 2,229 446 2,028 648 Dec 2001 2,827 3,062 -234 2,256 571 2,013 814 Mar 2002 2,824 3,046 -222 2,283 541 2,040 783 Jun 2002 2,621 2,805 - -... -184 _....._ __.. 2,290 331 - 2,038 583 ..._.. ...._._ Sep 2002 - -.._ 2,397 _.._..._- 2,540 -144 2,305 92 2,041 356 Dec 2002 2,434 2,655 -221 2,313 121 2,024 410 Mar 2003 2,385 2,609 -224 2,345 41 2,068 318 Jun 2003 2,534 2,852 -317 2,358 176 2,050 484 Sep 2003 -_ 2,533 2,,861 861 -329 2,373_. 160 2,056 477 All dollar values are shown in thousands. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 21 Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis ($) Period Ending _... ......... . _ Fund - ... - -. Policy _ Diff _._ _ - .. .. Nominal 8% - - - -._. . Diff _._.._.._.. -- Dec 2003 2,680 3,036 -356 - 2,388 292 Mar 2004 2,741 3,094 -352 2,424 317 Jun 2004 2,717 3,068 -351 2,453 263 Sep 2004 2,674 3,045 -371 2,469 205 Dec 2004 2,805 3,188 -383 2,483 321 Mar 2005 2,745 3,112 -367 2,504 240 Jun 2005 2,717 3,117 _. .._ -400 2,490 - - - -- ..... 228 -- Sep 2005 2,740 3,148 -408 2,513 227 Dec 2005 2,779 3,177 -398 2,541 238 Mar 2006 2,812 3,206 -394 2,549 264 All dollar values are shown in thousands. Index change effective 1/1106 from LB Gov /Credit to LB Aggregate 22 CPI + 4% I Diff 2,035 645 2,077 664 2,105 611 2,096 578 2,088 717 2,115 630 2,087 630 2,129 611 2,109 671 2,121 691 Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis (%) Period Ending . Fund .......... . Policy Diff Nominal 8% Diff . CPI -+ 4% . ........ .. Diff Dec 1994 0 --f6 i. 3 1.94 -3.61 .... ...... . 1,22 -2.89 Mar 1995 7.15 7.82 -0.67 1.94 5-21 2.12 5.03 Jun 1995 6.68 8.32 -1.64 1.94 4.74 1.71 4.97 Sep 1995 4.85 -- - - ------- 5.52 -0.67 1.94 2.91 1.45 3.40 3.52 . .. 1.08 .... 4.38 Dec 1995 5.46 5.49 -0-03 1.94 Mar 1996 2.64 2.24 0.40 1.94 0.70 2.39 0.25 Jun 1996 2.91 2.88 0.03 1.94 0.97 1.69 1.22 Sep 1996 .......... 2.22 5.12 2.61 6.23 . ........ - -0.39 -1.11 . ......... ...... ......... . 1.94 1.94 .......... .. . 0.28 3.18 1.69 1.49 0.53 3.63 Dec 1996 Mar 1997 0.17 1.30 -1-13 1.94 -1.77 1.89 -1.72 Jun 1997 11.16 11.79 -0,63 1.94 9.22 1.09 10-07 Sep 1997 8.66 0.59 5.95 - - --- ----------- 3.066 2.71 -2.47 1.94 1.94 6.72 -1.35 1.49 0.99 7.17 -0.40 Dec 1997 Mar 1998 8.07 8.90 -0.83 1.94 6.13 1.59 6.48 Jun 1998 -0.75 3.05 -3.80 1.94 -2.69 1.49 -2.24 Sep 1998 -6.44 -3.89 -2.55 1.94 -8.38 1 -7.73 Dec 1998 - - -- ------------ 10.89 12.51 -1.62 -- ----- 1.94 8.95 1.09 9.80 Mar 1999 -0.83 2.50 -3.33 1.94 -2.77 1.59 -2.42 Jun 1999 6.80 3.77 3.03 1.94 4.86 1.69 5.11 Sep 1999 -6;,C--1999 -4.78 --6.89 -3.56 -1.22 1.94 -6.72 1.99 -6.77 8.60 1.71 1.94 4.95 1.29 5.60 Mar 2000 2.62 2.57 0.05 1.94 0.68 2.69 -0.07 Jun 2000 -1.42 -1.02 -0.40 1.94 -3.36 1.69 -3.11 Sep 2000 3.54 . . ......... ..... 0.63 2.91 1.94 1.60 1.69 1,85 Dec 2000 0.95 -3.01 3.96 1.94 -0.99 1.19 -0.24 Mar 2001 -2.54 -5.93 3.39 1.94 -4.48 2.19 -4.73 Jun 2001 4.11 3.69 0.42 1.94 2.17 2.09 2.02 Sep 2001 -6.53 -7.20 0.67 1.94 -8.47 1.18 -7.71 Dec 2001 6 6.41 -0.09 1.94 4.38 0.09 6.23 Mar 2002 0.47 0.03 0.44 1.94 -1.47 2.19 -1.72 Jun 2002 -5.93 -6.75 0.82 1.94 -7.87 1.69 -7.62 Sep 2002 -7.51 -8.45 _K9& 0.94 1.94 -9.45 1.59 -9.10 Dec 2002 3.08 -2.87 1.94 1.14 0.98 2.1 Mar 2003 -1.47 -1.24 -0.23 1.94 -3.41 2.80 -4.27 Jun 2003 7.62 10.66 -2.94 1.94 5.68 0.69 6.93 Sep 2003 1.16 ..... ........ - , - - 1,44 ....... ........ --- -01281 -0.13 1.94 1.94 I-.. -078 1.79 . ....... 0.49 . - -0.63 6.59 Dec i WE- Returns for periods exceeding one year are annualized. Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 23 Palm Beach Gardens General Employees` General Employees Pension Plan Quarterly Comparison Analysis ( %) Period F Fund P Policy D Diff N Nominal 8% D Diff C CPI + 4% D Diff Mar 2004 2 2.67 2 _ .. _ _.. ---- _..._._ 1.94 0 0.73 2 2.59 0 0.08 Jun 2004 - -0.24 - -0.25 0 0.01 1 1.94 - -2.18 2 2.19 - -2.43 Sep 2004 - -0.38 0 0.30 - -0.68 1 1.94 - -2.32 1 1.08 - -1.46 Dec 2004 6 6.17 5 5.82 0 0.35 1 1.94 4 4.23 1 1.18 4 4.99 Mar 2005 - -1.19 - -1.54 0 0.35 1 1.94 - -3.13 2 2.59 - -3.78 Jun 2005 1 1.32 2 2.21 - -0.89 1 1.94 - -0.62 1 1.69 - -0.37 Sep 2005 1 1.75 1 1.79 - -0.04 1 1.94 - -0.19 3 3.20 - -1.45 _.._. _.^....__ _ . _ _. ..... Returns for periods exceeding one year are annualized Index change effective 1/1106 from LB Gov /Credit to LB Aggregate 24 Palm Beach Gardens General Employees' General Employees Pension Plan Risk Measures Report Explanation The evaluation of a fund's performance should extend beyond return to encompass measures of risk. The next two pages are used to determine the level of risk to which the fund has been exposed, and whether the return has been commensurate with the risk taken. All measures are calculated for both the fund and the policy as well as the difference between the two. Up to four time periods are evaluated depending on the age of the fund. # Of Negative Qtrs /# Of Positive Qtrs: Number of negative quarters shows the number of quarters in which the return was less than zero, and the number of positive quarters is the number of quarterly returns which were greater or equal to zero. Batting Average: The batting average is a measure of consistency. It shows the percent of the quarters the fund has beaten the policy and the percent of the quarters the policy has beat the fund. A high average for the fund (e.g. over 50) is desirable, indicating the fund has beaten the policy frequently. Worst QuarterlBest Quarter /Range: The worst quarter is the lowest quarterly return experienced during the period, a measure of downside risk. The best quarter is the highest quarterly return, and the range is the difference of the high and low, and indicates dispersion. Standard Deviation: Standard deviation measures the total volatility of the fund, by measuring dispersion. Higher standard deviation indicates higher risk. If the quarterly or monthly returns are all the same the standard deviation will be zero. The more they vary from one another, the higher the standard deviation. Thus, it measures uncertainty, which is a measure of risk. Alpha /Beta /R- Squared: If the policy is appropriate, then the alpha should be positive, the beta close to one, and the r- squared should be high. Beta measures risk relative to the policy. A beta of 1 suggests risk equivalent to the policy. Higher betas indicate higher relative risk. A beta of 1.2 indicates 20% more risk than the policy. The alpha measures the return adjusting for beta. The higher the alpha, the better. R- squared measures the relationship between the policy and the fund. A high r- squared means the returns of the fund can largely be explained by movements of the policy. The higher the r- squared, the more reliable the alpha and the beta. R- squared may range from 0 to 100. Beta, alpha and r- squared are derived from regression analysis using the fund and policy returns as the dependent and independent variables respectively. Roughly, one would expect the fund's performance to equal the return of the policy multiplied by the beta plus the alpha. Sharpe Ratio / Treynor Ratio: The Sharpe and Treynor ratios are similar. The Sharpe ratio is the excess return per unit of total risk as measured by standard deviation. The Treynor ratio is the excess return per unit of market risk as measured by beta. Both of these should be compared against the corresponding value for the policy. Higher numbers are better, indicating more return for the level of risk that was experienced. 25 Palm Beach Gardens General Employees' General Employees Pension Plan Risk Measures . _ � ._.. - :.. :....._......._: ,PoRC:: _..... _.__ � TfJ'ff # of Negative Qtrs 3.00 2.00 1.00 # of Positive Qtrs 9.00 10.00 -1.00 Batting Average 50.00 50.00 0.00 Worst Qtr -1.19 -1.54 0.35 Best Qtr 7.62 10.56 -2.94 Range 8.81 12.10 -3.29 Worst 4 Qtrs 3.98 3.97 0.01 Standard Deviation 5.78 5.64 0,14 Beta 0.96 1.00 -0.04 Annualized Alpha -0.45 0.00 -0.45 R- Squared 0.88 1.00 -0.12 Sharpe Ratio 1.47 1.67 -0.20 Treynor Ratio 8.82 9.43 -0.61 Tracking Error 2.66 0.00 2.66 Tracking Error 2,06 0.00 2.06 Information Ratio -0.47 0.58 . _ � ._.. - :.. :....._......._: ,PoRC:: _..... _.__ � TfJ'ff # of Negative Qtrs 7.00 6.00 � _ 1.00 # of Positive Qtrs 13.00 14.00 -1.00 Batting Average 55.00 45.00 10.00 Worst Qtr -7.51 -8.45 0.94 Best Qtr 7.62 10.56 -2.94 Range 15.13 19.01 -3.88 Worst 4 Qtrs -11.63 -10.68 -0.95 Standard Deviation 6.96 7.92 -0.96 Beta 0.83 1.00 -0.17 Annualized Alpha -0.01 0.00 -0.01 R- Squared 0.89 1.00 -0.11 Sharpe Ratio 0.32 0.34 -0.02 Treynor Ratio 2.70 2.69 0.01 Tracking Error 2.66 0.00 2.66 Information Ratio -0.17 -2.29 Worst 4 Qtrs i.Q Yr A..vnd Policy Diff A ricept.-- .. -.;- - Fund Policy Diff # of Negative Qtrs 13.00 11.00 2.00 # of Negative Qtrs 14.00 11.00 3.00 # of Positive Qtrs 27.00 29.00 •2.00 # of Positive Qtrs 32.00 35.00 -3.00 Batting Average 45.00 55.00 -10.00 Batting Average 41.30 58.70 -17.40 Worst Qtr -7.51 -8.45 0.94 Worst Qtr -7.51 -8.45 0.94 Best Qtr 11.16 12.51 -1.35 Best Qtr 11.16 12.51 -1.35 Range 18.67 20.96 -2.29 Range 18.67 20.96 -2.29 Worst 4 Qtrs -11.63 -12.21 0.58 Worst 4 Qtrs -11.63 -12.21 0.58 Standard Deviation 8.28 9.39 -1.11 Standard Deviation 7.99 9.01 -1.02 Beta 0.81 1.00 -0.19 Beta 0.80 1.00 -0.20 Annualized Alpha 0.09 0.00 0.09 Annualized Alpha 0.09 0.00 0.09 R- Squared 0.85 1.00 -0.15 R- Squared 0.83 1.00 -0.17 Sharpe Ratio 0.46 0.49 -0.03 Sharpe Ratio 0.60 0.66 -0.06 Treynor Ratio 4.70 4.57 0.13 Treynor Ratio 6.04 5,91 0.13 Tracking Error 3.66 0.00 3.66 Tracking Error 3.76 0.00 3.76 Information Ratio -0.21 Information Ratio -0.29 Index change effective 1/1106 from LB Gov /Credit to LB Aggregate M Palm Beach Gardens General Employees' General Employees Pension Plan Return vs Risk through March 31, 2006 13.00% L - -, 12.00% k< 11.00% S &P 500 10.00% A n n u 9.00% a Fun i z 8.00% e d R e 7.00% t +. U L B Gov /Corp r n 6.00% 5.00% 4.00 %, 3 Mo TBill 3.00018.00% 1 5.00% 10.00% 15.00% Risk (Annualized Std Dev) Policy Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 27 20.00% 25.00% 20.00% R 15.00% e r 10.00% n s 5.00% Palm Beach Gardens General Employees' General Employees Pension Plan Return vs Risk through March 31, 2006 3 Years Fund ;f S &R 500 3 Mo TBill *L¢ Gov /Corp 0.00% -L - - I - --1- -- 1 - - -I -= L J -. 1 _ -L . J 1.00% 3.00% 5.00% 7.00% 9.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% Risk (Annualized Std Dev) 10.00% 10 Years 9.00% + S &P 500 8.00% I R 7.00% and P, I {; u 6.00% 1.B Gov /Corp r n s 5.00% 4.00% 3 Mo TBill 3.00% -- - 1 1- 5.00% 15.00% 25.00% 0.00% 10.00% 20.00% Risk (Annualized Std Dev) Policy Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 28 5 Years 13.00% 1 5.50% 12.00% I 5.00% LB G v /Corp R 4.50% 10.00% e and u 4.00% WS e t &P 500 r 8.00% n 3.50% u s 3.00% I I 2.50% n 2.00°° 6.00% Me TB1'! I - 1 - -- 5.U�% 10.00% 15.00% 2.0.00% Risk (Annualized Std Dev) Inception 13.00% 1 12.00% I 11.00% y. S &P 500 10.00% R 9.00% e t Fund 8.00% u r 7.00% I I n LB Gov /Corp s 6.00% 5.00% 4.00% + 3 Mo Mill 3.00°/ 8.00% 1 1 5.00% 10.00% 15.00% 20.00% Risk (Annualized Std Dev) Palm Beach Gardens General Employees' Policy: First Objective: Second Objective: Universe Data: General Employees Pension Plan 09/30/1994-12/31/2005 0l /01/2006-03/31/2006 09/30/1994-03/3 1 /2006 09/3011994-03/31/2006 60.00 S &P 500 40.00 Lehman Gov /Credit Bond 60.00 S &P 500 40.00 Lehman Aggregate Bond Annual Return of 8.00% 100.00 US Consumer Price Index -1 4.00 annual adder 60% Pure Lg Cap Core & 40% High Quality Bond 09/30/1994 - 03/31/2006 40.00 High Quality Bond 60.00 Pure Large Cap Core 29 Mid Cap 610.000 APACHE CORP COM Bogdahn Consulting, LLC. 37,296.50 65.51 39.961.10 2.6(,4.00 1.4 1,43011 PORTFOLIO APPRAISAL, 31.37 44.855.38 26.17 37,423.10 - 7,432.28 Palm Beach Garden General Eni!pl�yees' Apmuiment Inventory & 36.91 38,390.98 46.90 48.776.00 10.385.02 Combined Account Management Co - Rcit A9ai ch 31, 2006 1,195.000 Chasapeake Energy 31.29 37,391.67 31.41 (Excluding Reinvested Divs.) 143.28 1.3 ('rnp. Unit Total Market Pct, Quanlikv Security Cost _ Cost Price Value GalnlLoSs Assets nomm -ric EQurrIES FISLRV INC COM _..------ -_ -_._ 42.55 ._..� Comnxtn Stock 1.4 1,35.5.000 14C'C hismance 28.00 37.945.69 34.80 Large Cap 9,208,31 1.7 Holdings Inc C'om 925.000 Aflac Inc. 47.23 43,090.71 45.13 41.745.25 - 1,945.46 1.5 650.000 BOEING CO COM 64.47 41,906.41 77.93 50,654.50 8,748.09 1.8 140,000 Canadian Pacific I.J(l 41.53 5,814.20 49.97 6,995.80 1,181.6U 0.2 760,000 Caterpillar Inc 49.83 37,871.18 71.81 54,575.60 16,704.42 1.9 2,865.000 Goodyear Tirc R. Rubber 15.38 44,050.81 14.48 41,485.20 - 21565.61 1.5 660.000 liallibulion Co. 55.46 36,602.41 73.02 48,193.20 11,590.79 1.7 640.000 Lockheed Martin Comp. 00.12 38,478,59 75.13 48,083.20 9,604.61 1.7 425.000 L<>msCotp. 89.82 38,172.27 101.20 43,010.00 4,837.73 1.5 1,165.000 MED1MMUNE INC 35.32 41,147.80 36.58 42,Ci15.70 1,467.90 1.5 37,356.05 COM 71 ,222.G5 33,866.60 2.5 Holdings 1,075.000 IIG & E Cotp. 35.89 38,583.79 38.90 41,817.50 3,233.71 1.5 1;720.000 Safeway Inc.. COM 22.29 38,341.72 25.12 43,206.40 4,864.68 1.5 1,340.000 TexasInstrumenls 33.48 44,859,98 32,47 43,509.80 1,350.19 1.5 960.000 Walgreen Co. 44.05 4229240 43.13 41,404.90 - 887.60 1.5 1,101.31 1.4 491,812.27 Comp /was AmeriDade 547,296.95 55,484.68 19.5 Mid Cap 610.000 APACHE CORP COM 61.14 37,296.50 65.51 39.961.10 2.6(,4.00 1.4 1,43011 Adtran Inc. 31.37 44.855.38 26.17 37,423.10 - 7,432.28 1.3 1,040.000 Apmuiment Inventory & 36.91 38,390.98 46.90 48.776.00 10.385.02 1.7 Management Co - Rcit 1,195.000 Chasapeake Energy 31.29 37,391.67 31.41 37;534.95 143.28 1.3 ('rnp. 3,240,000 El Paso Crap 11.72 37,972.80 12.05 39,042,00 1 069.20 1.4 920.000 FISLRV INC COM 43.76 40,259.57 42.55 39.146.00 - 1.113.57 1.4 1,35.5.000 14C'C hismance 28.00 37.945.69 34.80 47,154.00 9,208,31 1.7 Holdings Inc C'om 970.000 Henry Schein Inc, 45.52 44,158.09 47.86 46,424.20 2,266.11 1.7 1,065.000 Indymac Bancorp Inc 35.78 38,105.70 40.93 43,590.45 5,484.75 1.6 860,000 MC.KFSSON HOOC 45.92 39,488.79 52.13 44,831.80 5.343.01 1.6 INC COM 575.000 Price T Rowe Assoc Inc 67.51 38.819.00 78.21 44,970.75 6.151.75 1.6 C'om 935.000 Proleclive Life Corp. 41.74 39,022.51 49.74 46,506.90 7,484.39 1.7 2,705.000 Seagate Technology 13.81 37,356.05 26.33 71 ,222.G5 33,866.60 2.5 Holdings 560.000 Simon PP'1 Y Group luc. 68.08 38,124.80 84.14 47,1 18.40 8,993.60 1.7 655.000 Slericycle Inc 63.44 41,554.44 67.62 44,291.10 2.736.66 1.6 1,855.00(1 'rD Ameritrade 1441e 21.46 39,815.16 20.87 38,713.85 1,101.31 1.4 Comp /was AmeriDade Ilkl 630,557.13 716.707.25 86.150.12 25.5 Small Crap 970.000 hair K-mac amxl company 44.36 43,031.92 39.62 38,431.40 - 4,600.52 1.4 Inc. 1,105.000 IandstarSyslcms Inc. 37.15 41.946.43 44.12 48,752.00 7.706.17 1.7 050.000 Performance: Food 27.61 37.279.98 31.19 42. 106.50 4,826.52 1.5 Group 815.000 Precision Castparls 46.02 37.510.29 59.40 48,411.00 10,900.71 1.7 Corp. 2 Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL, Palm Beach Garden General Emrpit?yees' Combined Account March 31, 2006 (Excluding Reinvested Divs.) 11101 Total Market Pct, Quantity SecuritJ Cost - _Cost _ Price Value Gain/Loss Assets 1,300.000 Sunrise Settiort.iving 34.46 44,800.99 38.97 50,661.00 5,860.01 1.8 Inc. 885.000 Swift Enotgy Co 42.44 37,557.54 37.46 33,152.10 4,405.44 1.2 1,620.000 T -HQ Inc. 27.20 44,069.18 25.89 41,941.80 - 2,127.38 1.5 1,445.000 VCA AnIcch Etc 28.86 _ 41,707.04 28.48 41_153.60 _ - 553.44 1,5 327,003.37 344,610.00 17 606.63 123 _ !,449,372.77 1 60$,614.20 159,241.43 57.2 1,449,372.77 1,608,614.20 159,241.43 57.2 INTERNATIONAL EQUITIES Foreign Stock Foreign 900.000 Canadian Pacific 44.44 40,000.32 49.97 44,973.00 4,972.68 1.6 Railway I.A. NEW 915.000 Volvo Aktieholaget 40.65 37.194.02 46.62 42,657.30 5,463.28 1.5 ADR Cl. B 77,194.34 87,630.30 10,435.96 3.1 _ 77.194_34 87,630.30 10.435.96 3.1 77,194.34 87 630.30 10,435.96 3.1 FIXED INCOME Corpo ate Bonds 25,000 SBC Comtnunicalions 100.55 25,136.25 100.03 25,007.60 - 128.65 0.9 Inc. Note 5.750% Due 05 -02 -06 25,000 Chase Manhattan Corp 10176 25,688.75 101.48 25.369.48 3192$ 0.9 7.125% Due-02-01-07 50,000 Calcrpillar financial 99.99 49,992.50 99.50 49.751.85 - 240.65 1.8 Suvices 4.875 % Due 06 -15 -07 45,000 Menifl Lynch & Co. 103.41 46,536.30 102.03 45 914.63 - 021.68 1.6 6.560"/4 Due 12 -16-17 25,000 Wells Fargo & Co 97.541 24,375.25 9730 24,325.18 - 50.08 0.9 4.000 %4 Due 08 -15 -08 50,000 Mcrill Lynch & Co 103.86 51928.00 102.65 51,325.25 - 602.75 I.S 6.375% Duct 10 -15 -08 35.000 John Decre Cap 96.93 33,925.50 95.96 33,587.26 - 338.24 1.2 3.750% Due 01 -13 -09 40,000 Morgan Stanley 94.42 37;769.60 93.30 37.319.72 449,88 1.3 4.750% Due 04 -04 -14 20,000 Anhcuscr Busch Cos Inc. 95.58 19,1 15,8(1 93.61 18 ;721.72 394!18 0.7 4.625% Due 02 -01 -15 50,000 BellSouth Capital 102.25 51,125.00 100.38 50.192.35 - 932.65 1.8 Funding 6.040% Due I I -15 -26 4(1,000 fits( Union Corp 107.09 42,834.40 103.87 41,548.80 - 1,285,60 1.5 6.180% Due 02 -15 -36 _._....._._.._.._.._...._ 408.427.35 403,.82 063 _._.... .. ............ .... 5,363.53 ...... _._. 14.3 Accrued hueresl 6.897.58 408.427.35 40%961.41 - 5,363.53 14.6 2 CASH R EQUIV. Dogdahn Consulting, LI,C. Money Markets PORTFOLIO APPRAISAL, 84.125 Goldman Sachs 1.00 84;125.05 100 84;125.05 0.00 3.0 Palm Beach Garden General Employees' Adnun Combined Account $4,125.05 84,125.05 March 31, 2006 3.0 84,125.05 84,125.05 000 3,0 (Excluding Reinvested Divs.) 2,640,312.23 2,812,234.46 157,438.23 100.0 Unit Total Market Pet. Quantit► __ _- ...... ....... Securih .. ......... .a- Cost Cost Price Value Gain/Loss Assets Gavemmcttt Bonds ..._.._____._. _ 0 FNMA 0.00 0.00 97.63 0.00 0.00 0.0 3.800% Due 0l -18 -08 50,000 FNMA 99.16 497579.00 98.75 49,375.00 -204.00 1.8 4,500% Due 0"4 -08 40,000 FNMA 9695 38,780.80 97.38 38,950.00 169.20 1.4 3.875% Due 08 -15 -08 100,000 FHINIC 96.50 96,496,00 96.13 96,125.00 - 371.00 3.4 3.755% Due 03 -18 -09 150,000 FNMA 97.88 146,826.50 97.22 145,828.13 - 998.38 5.2 6.500% Due 06 -01 -10 50,000 US treasury Note 98.75 49,376.96 97.06 48,832.05 - 544.91 1.7 4.250% Due 10 -15 -10 50,000 US Treasury Note 96.59 48293.95 95.26 47.630.85 - 663.10 1.7 4.250% Due 08 -15 -IS 25,000 UNITED STATES 114.72 28,679.69 111.58 27,894.53 - 785.17 1.0 TREAS BUS 6.000% Due 02 -15 -26 50,000 Tennessee Valley 111.11 55,556.00 107.09 53,544.75 - 2,011.25 1,9 Authority 5.880% Due 04 -01 -36 ........_ ............. 513,588.90 5085180.30 ._ - 5.408.60 .....__._... 18.1 Accrued Interest _ ..._... ........... .......... 7,097 27 .. - -- ._...._. 0.3 -- ...._. 513,588.90 515.277.57 - 5,408,00 18.3 FHI.MC 58.561 17Ht.MC Pool #302621 98.86 57,892.57 97.49 57,059.96 - 802.62 2,0 5.000% Me 10 -01 -20 Accrual Interest ....._.___ ._-- ._. -. -__- -- 244.00 _......_.____..... - _.__. 0.0 __...._ 57,892.57 57,33396 - 802.62 _ 2.0 FNMA 49,029 FNMA I'mi 0/256000 101.39 49,711.26 100.04 49,046.83 - 064.43 1.7 6.000% Due 0 1 -0 1 -36 Accrued Interest 245.15 ---- ___.._---- .__.. 0.0 49,711.26 49,291.98 - 664.43 1.8 1.029,620.07 1.031,864.91 -12,239.16 36.7 CASH R EQUIV. Money Markets 84.125 Goldman Sachs 1.00 84;125.05 100 84;125.05 0.00 3.0 Fin.Sq.Tmtsury Oblib. Adnun $4,125.05 84,125.05 0.00 3.0 84,125.05 84,125.05 000 3,0 TOTAL PORTFOLIO 2,640,312.23 2,812,234.46 157,438.23 100.0 3 Bogdahn Consulting, LL.C. CONTRIBUTIONS /WITHDRAWALS Palm Beach Garden General Employees' Combined Account Front 01 -01 -06 .Tip 03-31 -06 Tran Trade Settle Broker Code Date Date Security Amount Quantity Code Commission CONTRIBUTIONS ti 01 -04 -06 01 -04 -06 Cash 7.309.19 Rcceivtxl to cover momhly henctit payments ti 01 -04 -06 01 -04 -06 Cash 4,972.80 Received to cover monthly benefit payments ti 01 -13 -06 01 -13 -06 Cash 592.97 EE ti 01 -17 -06 01 -17 -06 Cash 355.78 Trinsfer from account 80105112 ti 01.17 -06 01 -17-06 Cash 237.19 Tmnsfer from account 80105112 li 01 -23 -06 01 -23 -06 Cash 573.09 EE ti 01.25 -06 01 -25 -06 Cash 19,848.00 ER ti (11.27 -06 01 -27 -06 Cash 286.54 Irancfer helween accounts l i 01 -27 -06 01 -27 -06 Cash 286.55 TI-ansfer in to reined contributions ti 02 -09 -06 02 -09.06 Cash 1.349.06 Trinsrer ti+um account 5108 ti 02 -09 -06 02 -09 -06 Crash 899.38 Transfer fmm account 5109 li 02 -15 -06 02 -15 -06 Cash 580.55 EE ti 02 -16 -06 02 -16-06 Cash 34833 Transfer for investmcnl (if contributions ti 02 -16 -06 02 -16 -06 Crash 232.22 TrtmsferIxtwcc» accounts ti 02 -24 -06 02- 24.06 Cash 2.492.10 Transfer ti 02 -24 -06 02 -24 -06 Cash 1,661.40 Tn:msfer Ii 02 -27.06 02 -27 -06 Cash 573.09 EE li 03 -01 -06 03 -01 -06 Cash 10.915.25 Tahnsfo. li 03 -01 -06 03 -01 -06 Cash 7,276.84 TransIbl- li 03 -14 -06 03 -14 -06 Cash 607.88 EE ti 03 -14 -06 03 -14 -06 Crash 3(14.73 Transfer for investment ti 03 -14 -06 03 -14 -06 Cash 243.15 Traansfer for invesunent li 03 -24 -06 03 -24 -06 Cash 573.09 L-F ti 03 -27 -06 03 -27 -06 Crash 343.85 Transfer liar investment ti 03 -27 -06 03 -27 -06 Cash 229.24 -transfer for investment 63.052.27 Bogdahn Consu {ling, I.I.C. CONTRIBUTIONS /WITHDRAWALS Palm Beach Garden Genera! Empht j ees' Combined Account From 01 -01 -116 To 03 -31 -06 -Fran Trade Settle Code Date Date Security Amount VIITHDRAWAI,S to 01 -03 -06 01 -03 -06 Cash 16,962.71 Benefit payments to 01.03 -06 01 -03.06 Cash 1,802.47 WVFI lax on benefit paynlcnts to 01 -04 -06 01 -04.06 Cash 7,309.19 Transfer to account 801051 12 to corer beneft payments to 01 -04.06 01 -04 -06 Cash 4,872.80 Transfer to account 80105112 In 01 -09 -06 01 -09 -06 Cash 288.45 Custodial fec to 01 -t7 -06 01 -17 -06 Cash 355.78 Ttansfer to Rockwood Capital account to 01 -17 -06 01 -17 -06 Cash 237.19 Transfer to Sawgrass account to 01 -27 -06 01 -27 -06 Cash 286.54 T ransfcr to Rockwood Capital accounl to 01 -27 -06 01 -274)6 Cash 286.55 Transfer to Sawgn ms account lo 01-31 -06 01 -31 -06 Crash 34.00 Foreign tax withheld Jo 02 -01 -06 02-11 -06 Crash 16,962.71 BeneCl paynlcnts to 02 -01 -06 02 -01 -06 Cash 1,802.47 W/H lax on benefit payments l0 02 -08 -06 02 -08 -06 Cash 2,000.00 13C for period ending IW31/05 lo 02 -08 -06 02 -08 -06 Crash 2, 1 80.59 Quarterly nnnagcnleni fee to Rockwood Capital to 02 -09 -06 02 -09 -06 Cash 1,349.06 Transfer to R/D account to 02 -09 -06 02 -09.06 Cash 899.38 Transfer to RA) account to 02.16 -06 02- I6-06 Cash 348.33 transfer to account 5108 to 02 -16 -06 02 -16 -06 Cash 232.22 Transfer to account 5109 to 02 -23 -06 02 -23 -06 Cash 743.50 C&D to 02-23 -06 02 -23 -06 Cash 3.410.00 F&F M 02 -24 -06 02 -24 -06 Cash 2,492.10 Transfer to Rif) account to 02 -24 -06 02 -24 -06 Crash 1,661.40 Transfer to R/D account to 03 -01 -06 03 -01 -06 Cash 16.971.88 Benefit Payments to 03 -01 -06 03 -01 -06 Cash 1.793.30 Federal w/h on henefrt paymcnls to 03 -01 -06 03 -01 -06 Cash 10.915.25 Transfer to R/D account to 03 -01 -06 03 -01 -06 Cash 7,276.84 Transfer to acct 51 12 2 Broker Quantity Code Collmlission Bogdahn Consulting, LLC. CONTRIBUTIONS /WITHDRAWALS Palm Beach Garden General Employees' Combined Account From 01 -01 -06 To 03 -31 -06 Tran Trade Set tic Code Date Date Security Amount Quantity to 03 -14 -06 03 -14 -06 Cash 364.73 dp 01 -17 -06 01.17 -06 AdminishaUon Fcc Transfer to a/c 5108 to 03 -14 -06 03.14 -06 Crash 243.15 1.136.55 Transfer to a/c 5109 lo 03 -27 -06 03 -27 -06 Cash 343.85 Transfer to a/c 5108 to 03 -27 -06 03 -27 -06 Cash 229.24 Transkr lo ale. 5109 104,655.68 EXPENSE AC COUNTS 0.00 AFTER FEE PERFORMANCE EXPENSE ACCOUNTS dp 01- 09.06 01 -09 -06 Administration Fw.. 1.80 Cusimlial Icc dp 01 -09 -06 01 -09-06 Administration Fee 459.75 Quancrly ctistotlial fee dp 01 -17 -06 01.17 -06 AdminishaUon Fcc 675.00 Management fce to Sawgrass Asset Mle 1.136.55 POI1TV01,10 NET TOTAI. - 42,739.96 EXPENSE ACCOUNT SS PAID BY CLIENT A1-,1'I• :R FEE PERFORMANCE EXPENSE, ACCOUNTS PAID BV C1.lENT 0.00 0.00 GRAND TOTAL 42,739.96 3 Broker Codc _ Commission Palm Beach Gardens General Employees' Pension Plan First Quarter 2006 & R 0 C K W 0 0 D C A P I T A L A D V I 5 0 R S 1401 S. Brentwood Blvd. Suite 400 • St. Louis, Missouri 63144 • (888) 962 -8336 (toll -free) (314) 962 -1254 (fax) Palm Beach Gardens General Empl First Quarter 2006 Total Fund Portfolio Summary Pension Plan Equities 97% Change this Quarter: $57,193 Change in Market Value Net Dividends /Interest Contributions Disbursements Net Realized & Unrealized (G /L) Portfolio Summary Short -Term Funds = eke3% 15% 10% 5% 0% $6,148 $1,916 ($22,559) $71,689 Total Fund Performance 1st Qtr. 2006 Since Inception' Palm Beach GE ® S &P 500 10/25/05 Inception R0CRW00D CAPITAL ADVISORS 1 Palm Beach Gardens General Employees' Pension Plan First Quarter 2006 Market Environment • This latest quarter represents a much better launch to the new year than one year ago when the equity market stumbled `but of the gate" and declined 2.2% in the first quarter of 2005. s Leadership continues to be concentrated within the more cyclical areas of the equity market: machinery, energy, aerospace /defense, metals, etc. Your portfolio holds important positions in most of those groups. As the Fed continues in its strategy of gradually boosting interest rates, the more interest -rate sensitive groups such as home building and electric utilities are increasingly faltering. We expect those trends to continue and have positioned your portfolio in line with that expectation. : While many investment gurus have' been highlighting the virtues of owning the large -cap issues for some time (two to three years), their market performance continues to lag the mid- and small -cap segments which are apparently buoyed by an alternative thinking of other investors who have identified better money- making opportunities in the mid -and small -cap areas. While even these trends will change at some point, we are not anticipating it in the near future. As such your portfolio weighting has been concentrated more within the mid -cap segment. R 0 C K W 0 0 D CAPITAL ADVISORS 2 ,�& Equity Characteristics March 31, 2006 Characteristics Sector Weighting 2.5% 7.2% 12.2% 22.7% 13.2% 22.8% 12.2% 0.0% 5.0% 2.2% 100% 38 1.0 1.2% 48% 39% 13% Top 10 Holdings 1. Seagate Technology 4.1% 2. Caterpillar 3.1% 3. Canadian Pacific Railway Ltd. 3.0% 4. Sunrise Senior Living 2.9% 5. Boeing Co. 2.9% 6. Apartment Invt & Mgmt 2.8% 7. Landstar System Inc- 2.8% 8. Precision Castparts 2.8% 9. Halliburton Co. 2.7% 10. Lockheed Martin Corp 2.7% AKROCKW OOD CAPITAL ADVISORS 3 Equity Transactions First Quarter 2006 Sold Jan Rockwell Collins Inc. Jan Centerpoint Energy Inc. Jan Teco Energy Inc. Feb Entcrgy Corp. Mar Schedng- Plough Corp. " Mar Sprint Nextel Corp. Mar Murphy Oil Corp. Mar Baxter International Inc. Bought Jan Henry Schein Inc. Jan THQ Inc. Jan Adtran Inc. Feb Fair Isaac Corp. Feb Sunrise Senior Living Inc. Mar TD Ameritrade Holding Corp. Mar Medimmune Inc. Mar VCA Antech Inc. Mar Stericycle Inc. 1 4& R 0 C K W 0 0 D CAPITAL ADVISORS 4 Equity Holdings -- March 31, 2006 R0CKNOOD CAPITAL ADVISORS ,[� CASH 59" 1.00 161.14 NA ,507:98 1.00 13�9,961.. ,507.08 3:334 "" 2779:13' 4.75 ADTRAN INC 1,430 31.37 0.57 ,854.95 737,296.99 26.17 ,423.10 2.133 501,47 1.34 AFLAC INC 925 41.23 0.61 ,690.99 45.13 ,745.25 2.379 48424 1.16 APACHE CORP 610 0.20 65.51 10 2.277 2 39.77 0.60 APARTMENT INVT & MGMT CO •A 1,040 36.91 0.44 38,390.98 46.90 48,776.00 2.780 2487,58 5.10 BOEING CO 650 64.47 0.54 41,906.02 77.93 50,654.50 2.887 769.95 1.52 CANADIAN PACIFIC RAILWAY LTD 1,040 44.05 NA 45,815.02 49.97 51,968.80 2.962 644.41 1.24 CATERPILLAR INC 760 49.83 013 37,871.03 71.81 54,575.60 3.110 725.86 1.33 CHESAPEAKE ENERGY CORP 1,195 3129 0.95 37,392.03 31.41 37,634.95 2.139 238.47 0.63 EL PASO CORP 3,240 11.72 0.83 37,973.12 12.05 39,042.00 2.225 511.45 1.31 FAIR ISAAC CORP 970 44.36 0.77 43,032.01 39.62 38,431.40 2.190 76.86. 0,20 FISERV INC 920 43.76 0.24 40260.03 42.55 39,146.00 2.231 0.00 0.00 GOODYEAR TIRE & RU68ER CO 2,865 15.38 0.65 44,051.09 14,48 41,48520 2.364 0.00 0.00 HALLIBURTON CO 660 55.46 0.47 36,602.02 73.02 48,193.20 2,746 385.55 0.80 HCC INSURANCE HOLDINGS INC 1,355 28.00 0.79 37,945.96 34.80 47,154.00 2.687 414.96 0.88 HENRY SCHEIN INC 970 45.52 0.35 44,157.99 47.86 46,424.20 2.646 0.00 0.00 INDYMAC BANCORP INC 1,065 35.78 0.94 38,t06.02 40.93 43,590.45 2.484 1865.67 4.28 LANDSTAR SYSTEM INC 1,105 3715 0.08 41,046.00 44.12 48,752.60 2.778 112.13 0.23 LOCKHEED MARTIN CORP 640 60.12 0.61 38,478.98 75.13 48,083.20 2.740 769.33 1.60 LOEWS CORP 425 89.82 0.17 38,172.01 101.20 43,010.00 2.451 249.46 0.58 MCKESSON CORP 660 45.92 0.56 39,488.98 52.13 44,831.80 2.555 201.74 0:45 MEDIMMUNE INC 1,165 35.32 0.52 41,148.03 36.58 42,615.70 2.429 0.00 0,00 P G & E CORP 1,075 35.89 0.88 38,584.01 38.90 41,817.50 2.383 1405.07 3.36 PERFORMANCE FOOD GROUP CO 1,350 27.61 0.54 37,279.98 31.19 42,106.50 2.400 0.00 0.00 PRECISION CASTPARTS CORP 815 46.02 0.60 37,509,97 59.40 48,411.00 2.759 96.82 0.20 PROTECTIVE LIFE CORP 935 41.74 0.90 39,022.97 49.74 46,506.90 2.650 734.81 1.58 SAFEWAY INC 1,720 22.29 0.91 38,342.07 25.12 43,206.40 2.462 341.33 0.79 SEAGATE TECHNOLOGY 2,705 13.97 NA 37,769.12 26.33 71,222.65 4.059 0.00 0.00 SIMON PROPERTY GROUP INC 560 68.08 0.61 38,125.02 84.14 47,118.40 2.685 1696.26 3.60 STERICYCLE INC 655 63.44 0.19 41,553.99 67.62 44,291.10 2.524 0.00 0.00 SWIFT ENERGY CO 885 42.44 0.50 37,557.98 37.46 33,152.10 1.869 0.00 0.00 Sunrise Senior Living Inc 1,300 34.46 0.06 44,800.99 38.97 50,661.00 2.887 0.00 0.00 T ROWE PRICE GROUP INC 575 67.51 0.12 38,619.00 78.21 44,970.75 2.563 634.09 1.41 TD AMERITRADE HOLDING CORP 1,855 21.46 0.30 39,814.98 20.87 38,713.85 2.205 0.00 0.00 TEXAS INSTRUMENTS INC 1,340 33.48 0.64 44,859.98 32.47 43,509.80 2.480 156.64 0.36 THQ INC 1,620 27.20 0.36 44,069.02 25.89 41,941.80 2.390 0.00 0.00 VCAANTECHINC 1,445 28.86 0.02 41,707.04 28.48 41,153.60 2.345 0.00 0.00 VOLVO AB-SPONSORED ADR 915 40.65 NA 37.194.02 46.62 4,657.30 2.431 1016.31 4.49 WALGREEN CO 960 44.05 0.15 42,292.03 43.13 41,40410 2.360 246.43 0.60 R0CKNOOD CAPITAL ADVISORS ,[� Economic Environment & Outlook March 31, 2006 1 A In the first quarter, the Federal Reserve raised the federal funds rate an additional 50 basis points to 4.75 %. The fed funds futures contract, the best predictor of Fed policy moves, indicates that another increase in May is a virtual certainty. In addition, with the economy showing few signs of slowing, the odds of further rate increases have been growing. A The Fed must remain on guard against the prospect of rising inflation expectations. The persistence of high headline inflation and a tighter labor market has finally started to feed through into wages. In September 2005, average hourly earnings had risen by 2.7% on a year- over -year basis, but by February 2006 the rate had climbed to 3.5 %. A The U.S. experienced average employment growth of 165,000 jobs per month in 2005. Since the end of 2004, the unemployment rate has dropped from 5.4% to the current 4.8 %. The labor market still appears to be tightening, putting upward pressure on wages and inflation. A Housing has been a significant source of growth in the U.S. economy. Not only have the direct effects of housing construction provided a major boost, but consumer spending has been elevated due to the high level of cash -out refinancing and home equity lending. An increase in long -term interest rates is likely to put the brakes on housing and could slow consumer spending. A A swing in the inventory cycle is likely to provide significant stimulus for the economy in the first half of 2006. The inventory-to -sales ratio, a measure of business stocks of inventories relative to business sales, is at historically low levels. This has been an excellent indicator of strong near -term economic growth. A We have become less defensive from a duration standpoint, and our portfolios maintain durations near their respective benchmarks. While another Fed rate hike to 5% is highly likely, the end of this tightening cycle is in sight. However, the interest rate outlook will be driven by the economic data releases over the next several months. I I_�&- R 0 C K W 0 0 D CAPITAL ADVISORS X Proxy Voting Record Walgreen Co. WAG • .- bate Vote . Elect Director Bernauer N/A For 960 01/11/06 Elect Director Foote N/A For 960 01/11/06 Elect Director Howard NIA For 960 01/11/06 Elect Director McNally N/A For 960 01/11106 Elect Director Reed N/A For 960 01/11/06 Elect Director Rein N/A For 960 01/11/06 Elect Director Schwartz N/A For 960 01/11/06 Elect Director Schwemm N/A For 960 01/11/06 Elect Director Skinner N/A For 960 01/11/06 Elect Director Ferstel N/A For 960 01/11/06 Elect Director C. Walgreen, Ill N/A For 960 01/11/06 Ratify Auditors NIA For 960 01/11/06 Amend Stock Option Plan N/A For 960 01111/06 "j R 0 C K W 0 0 D CAPITAL ADYISORS VA