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HomeMy WebLinkAboutAgenda General Pension 051407City 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 14, 2007 at 2:OOPM in Council Chambers. Old Business: - Approval of 2/12/07 minutes New Business: Adjournment Report from Bogdahn Consulting. Report from Scott Christiansen Approval of Gibson & Wirt Insurance Quote Approval of Willie Sigler's Retirement Approval of Bills 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. Performance Evaluation for Palm Beach Gardens General Employees Pension Plan Rockwood & Sawgrass For the Period Ending March 31, 2007 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 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 1 st through December 31 st. 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 Trailing Returns through March 31, 2007 invesurtenlL rUucy Index 03/31/2007 2007 09/30/1994 Lehman Aggregate Bond Qtr YTD Incept Beginning Value 2,906 2,906 1,079 Net Flows -56 -56 -464 Investment G/L 129 129 2,364 Ending Value 2,979 2,979 2,979 Trailing Returns through March 31, 2007 invesurtenlL rUucy Index Weight S &P 500 60.00 Lehman Aggregate Bond 35.00 MSCI EAFE 5.00 Total 100.00 Calendar Year Returns 0313112007 2007 09/30/1994 3 Yr 5 Yr 10 Yr 09/30/19.94 3 Yr 5 Yr 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 11.56 9.80 7.92 10.75 5.86 5.54 4.80 5.62 .5.22 7.58 8.99 Policy 9.90 8.93 7.34 11.05 6.32 5.66 3.41 4.38 5.43 7.91 9.85 Diff 1.66 0.87 0.58 -0.30 -0.46 -0.12 1.39 1.24 -0.21 -0.33 -0.86 Calendar Year Returns 0313112007 2007 09/30/1994 3 Yr 5 Yr 10 Yr 09/30/19.94 3 Yr 5 Yr 10 Yr Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 Fund 4.49 4.49 9.66 3.98 8.33 14.87 -9.90 0.84 5.74 7.81 11.27 Policy 1.13 1.13 11.12 3.97 8.25 18,76 -9.53 -3.67 -0.92 11.40 21.35 Diff 3.36 3.36 -1.46 0.01 0.08 -3.89 -0.37 4.51 6.66 -3.59 -10.08 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 09/30/19.94 3 Yr 5 Yr 10 Yr Incept Fund 12.0 14.2 17.4 16.7 Policy 11.2 15.5 18.9 18.7 Ratio 106.3 91.5 92.2 89.7 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. Returns in Down Markets Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 2 09/30/1994 3 Yr 5 Yr 10 Yr Incept Fund -2.5 -11.3 -12.3 -12.3 Policy -2.7 -12.3 -13.9 -13.9 Ratio 93.6 91.2 88.0 88.0 Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 2 Palm Beach Gardens General Employees Pension Plan Asset Allocation as of March 31, 2007 EqL 68' At Market Cash & Equiv 5% Equit 64% At Cost Cash & Equiv 5% ixed Income 27% Fixed Income 31% Equity Limitations 65 @ Cost 3 70 @ Market I d f 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 1st through December 31st. 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 indifferent 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. r Palm Beach Gardens General Employees' General Employees Pension Plan . i. Universe Comparisons 60% PLCC, 35% HQB & 5% International r =`Trailing Returns through March 31, 2007 Calendar Year Returns W Qtr YTS 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Fund Return 11.56 9.80 7.92 10.75 5.86 5.54 4.80 5.62 5.22 7.58 % -tile 16 15 33 69 54 40 24 24 34 31 Policy 5th'% -tile 2.35 2.35 14.36 6.30 11.02 21.83 -4.21 3.98 13.73 24.88 Return 9.90 8.93 7.34 11'.05 6,32 5.66 3.41 4.38 5.43 7.91 % -tile 37 49 56 57 35 38 42 41 26 20 Universe 5th % -tile 12.72 10.35 9.30 13.05 7,78 7.55 7.65 6.83 6.63 8.73 25th % -tile 10.78 9.52 8.31 12.10 6.72 6.15 4.55 5.48 5.45 7.70 50th % -tile 9.59 8.89 7.45 1122 5.94 5.31 3.10 4.14 4.95 7.28 75th % -tile 8.56 8.45 6.93 10,55 5.27 4.73 2.48 3.49 4.41 6.73 95th % -tile 5.59 6.92 5.27 9.09 3.91 3.22 0.22 1.89 2.93 5.27 Calendar Year Returns W Qtr YTS 2006 2005 2004 2003 2002 2001 2000 1999 Fund Return 4.49 4.49 9.66 3.98 8.33 14.87 -9.90 0.84 5.74 7.81 % -tile 1 1 80 53 45 100 64 18 23 70 Policy Return 1.13 1.13 11.12 3.97 8.25 18.76 -9.53 -3.67 -0.92 11.40 % -tile 52 52 51 53 47 47 57 54 62 58 Universe 5th'% -tile 2.35 2.35 14.36 6.30 11.02 21.83 -4.21 3.98 13.73 24.88 25th % -tile 1.50 1.50 12.34 4.79 9.42 19.66 -7.10 -1.46 5.06 13.98 50th % -tile 1.15 1.15 11.13 4.03 8.17 18.64 -9.31 -3.59 -0,23 11.98 75th % -tile 0.95 0.95 10.02 3.57 7.28 17.66 -10.57 -4.80 -1.67 4.41 95th % -tile 0.35 0.35 6.06 2.66 5.50 16.00 -13.13 -10.62 -4.54 -0.84 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, 2007 Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy P <F. Palm Beach Gardens General Employees' Total Fixed Income Executive Summary Account Reconciliation Trailing Returns through March 31, 2007 invesimem roiicy Index Weight Lehman Aggregate Bond 100.00 Total 100.00 03/31/2007 Qtr 2007 YTD 09/30/1994 Incept Beginning Value 949 949 453 Net Flows -13 -13 -141 Investment G/L 11 11 636 Ending Value 948 948 948 Trailing Returns through March 31, 2007 invesimem roiicy Index Weight Lehman Aggregate Bond 100.00 Total 100.00 Calendar Year Returns 03/31/2007 2007 09/30/1994 3 Yr 5 Yr 10 Yr Incept Fund 7.5 9.3 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 5.53 4.06 2.77 3.08 4.79 4.47 5.18 4.68 4.90 5.53 5.96 Policy 6.58 4.46 3.09 3.85 5.69 5.51 6.47 5.86 5.94 6.56 6.91 Diff -1.05 -0.40 -0.32 -0.77 -0.90 -1.04 -1.29 -1.18 -1.04 -1.03 -0.95 Calendar Year Returns 03/31/2007 2007 09/30/1994 3 Yr 5 Yr 10 Yr Incept Fund 7.5 9.3 9.0 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 Fund 1.20 1.20 3.84 2.65 3.16 2.83 9.23 9.24 6.50 -1.37 8.99 Policy 1.50 1.50 4.33 2.34 4.21 4.68 11.02 8.51 11.84 -2.15 9.47 Diff -0.30 -0.30 -0.49 0.31 -1.05 -1.85 -1.79 0.73 -5.34 0.78 -0.48 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 Fund 7.5 9.3 9.0 9.5 Policy 8.8 11.0 10.6 10.9 Ratio 85.5 84.6 85.0 86.7 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. 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 6 09/30/1994 3 Yr 5 Yr 10 Yr Incept Fund -3.5 -3.1 -3.1 -3.5 Policy -4.4 -3.4 -3.3 -3.8 Ratio 80.6 89.0 92.2 91.8 Sawgrass assumed fixed- 10 -26 -05 $1,043,932.60 - Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 6 4 Palm Beach Gardens General Employees' Fixed Income & Cash - Sawgrass Executive Summary I Account Reconciliation Trailing Returns through March 31, 2007 investment rvncy Index Weight Lehman Aggregate Bond 100.00 Total 100.00 10/26/2005 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept Fund 5.53 4.60 Policy 6.58 5.05 Diff -1.05 Calendar Year Returns 03/31/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 Fund 1.20 1.20 3.84 Policy 1.50 1.50 4.33 Diff -0.30 -0.30 -0.49 Returns in Up Markets 03/31/2007 Qtr 2007 YTD 10/26/2005 Incept Beginning Value 949 949 1,044 Net Flows -13 -13 -161 Investment G/L 11 11 . '65 Ending Value 948 948 948 Trailing Returns through March 31, 2007 investment rvncy Index Weight Lehman Aggregate Bond 100.00 Total 100.00 10/26/2005 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept Fund 5.53 4.60 Policy 6.58 5.05 Diff -1.05 Calendar Year Returns 03/31/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 Fund 1.20 1.20 3.84 Policy 1.50 1.50 4.33 Diff -0.30 -0.30 -0.49 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 111/2006 from LB Gov /Credit to LB Aggregate 7 I eturns in Down Markets 10/26/2005 1 Yr 10/26/2005 1 Yr Incept Fund 5.4 7.0 Policy 6.7 8.1 Ratio 81.3 86.5 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 111/2006 from LB Gov /Credit to LB Aggregate 7 I eturns in Down Markets 10/26/2005 1 Yr Incept Fund 0.1 -0.3 Policy -0.1 -0.7 Ratio -125.0 44.4 Palm Beach Gardens General Employees' a Total Equity Executive Summary Account Reconciliation I railing t-\eturns tnrougn nnarcn ji, zuut Investment Policy Index 03/31/2007 2007 09/30/1994 MSCI EAFE Qtr YTD Incept Beginning Value 1,932 1,932 622 Net Flows -20 -20 -325 Investment G/L 118 118 1,733 Ending Value 2,030 2,030 2,030 I railing t-\eturns tnrougn nnarcn ji, zuut Investment Policy Index Weight S &P 500 95.00 MSCI EAFE 5.00 Total 100.00 Calendar Year Returns 03/31/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 Fund 6.12 6.12 12.95 4.52 11.44 22.83 -21.03 -4.42 5.29 14.26 12.39 Policy 0.81 0.81 15.80 4.91 10.88 28.68 -22.10 -11.88 -9.11 21.04 28.58 Diff 5.31 5.31 -2.85 -0.39 0.56 -5.85 1.07 7.46 14.40 -6.78 -16.19 Returns in Up Markets 09/30/1994 3 Yr 5 Yr 10 Yr Incept Fund 17.6 21.5 27.1 26.2 Policy 16.5 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 14.50 12.90 10.76 15.53 6.04 5.68 4.10 5.82 5.10 8.42 10.52 Policy 12.03 11.88 10.12 15.90 6.30 5.27 0.92 2.90 4.52 8.22 11.34 Diff 2:47 1.02 0.64 -0.37 -0.26 0.41 3.18 2.92 0.58 0.20 -0.82 Calendar Year Returns 03/31/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 Fund 6.12 6.12 12.95 4.52 11.44 22.83 -21.03 -4.42 5.29 14.26 12.39 Policy 0.81 0.81 15.80 4.91 10.88 28.68 -22.10 -11.88 -9.11 21.04 28.58 Diff 5.31 5.31 -2.85 -0.39 0.56 -5.85 1.07 7.46 14.40 -6.78 -16.19 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 Fund 17.6 21.5 27.1 26.2 Policy 16.5 23.1 30.2 29.6 Ratio 106.7 93.1 89.6 88.5 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. Returns in Down Markets Rockwood assumed account 10 -26 -05 $ 1,565,898.88 International bought'11 /9/2006, will be added to Policy 1/1/2007 8 09/30/1994 3 Yr 5 Yr 10 Yr Incept Fund -5.7 -22.8 -22.1 -21.4 Policy -5.4 -24.5 -26.3 -24.7 Ratio 106.5 93.1 83.7 86.8 Rockwood assumed account 10 -26 -05 $ 1,565,898.88 International bought'11 /9/2006, will be added to Policy 1/1/2007 8 + R Palm Beach Gardens General Employees' Total Equity Universe Comparisons 95% Pure Large Cap Core & 5% International Trailing Returns through March 31, 2007 Calendar Year Returns - - - - - -- - -- -___ YT� 2006 _2005 2004 2003 2002 20011 2000 1999 Fund Return 6.12 6.12 12.95 4.52 11.44 22.83 -21.03 -4.42 5.29 14.26 % -tile 1 1 1 Yr 2 Yr 3 Yr 4 Y 5 Yr 6 Yr 7 Yr 8 Yr 7Yr 10 Yr Fund Return 14.50 12.90 10.76 15.51 6.04 5.68 4.10 5.82 5.10 8.42 % -tile 17 19 32 65 60 38 25 20 24 31 Policy Return 12.03 11.88 10.12 15.90 6.30 5.27 0.92 2.90 4.52 8.22 % -tile 31 39 41 41 41 43 46 48 36 36 Universe 5th % -tile 16.49 14.03 12.98 18.57 8.99 8.54 8.15 7.39 6.80 9.98 25th % -tile 12.72 12.68 11.01 17.24 7.43 6.42 3.98 4.42 4.93 8.56 50th % -tile 11.65 11.71 9.97 1533 6.16 5.07 0.79 2.80 4.28 7.95 75th % -tile 10.31 11.18 9.45 15.21 5.64 4.43 0.29 2.34 3.75 7.27 95th % -tile 5.16 8.84 6.57 12.17 3.02 1.59 -3.18 -0.64 1.19 4.80 Calendar Year Returns - - - - - -- - -- -___ YT� 2006 _2005 2004 2003 2002 20011 2000 1999 Fund Return 6.12 6.12 12.95 4.52 11.44 22.83 -21.03 -4.42 5.29 14.26 % -tile 1 1 82 71 33 100 39 15 22 72 Policy Return 0 .8 1 0.81 15.80 4.91 10.88 28.68 -22.10 -11.88 -9.11 21.04 % -tile 46 46. 30 48 38 27 49 43 53 29 Universe 5th % -tile 2.71 2.71 21.15 8.71 14.89 31.24 -13.58 1.56 13.51 36.89 25th % -tile 1.37 1.37 16.72 6.33 12.34 28.75 -19.53 -8.37 0.50 21.96 50th'O/ the 0.78 0.78 15.51 4.87 10.68 28.09 -22.16 -12.08 -8.22 20.37 75th % -tile 0.57 0.57 13.84 4.37 10.10 26.61 -22.68 -12.50 -9.58 8.28 95th % -tile -0.28 -0.28 7.76 3.31 6.49 23.80 -26.81 -22.21 -14.98 -2.18 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, 2007 Rockwood assumed account 10 -26 -05 $ 1,565;898.88 International bought 11/9/2006, will be added to Policy 1/1/2007 M j' 1. Palm Beach Gardens General Employees' Domestic Equity & cash - Rockwood Executive Summary Account Reconciliation Investment Policy i raiimg Keiurns inrougn iviarcn 3-i, zuut Index 03/31/2007 Qtr 2007 YTD 10/26/2005 Incept Beginning Value 1,821 1,821 1,566 Net Flows -20 -20 -85 Investment G/L 113 113 434 Ending Value 1,914 1,914 1,914 i raiimg Keiurns inrougn iviarcn 3-i, zuut Index Weight S &P 500 Total 100.00 100.00 10/26/2005 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept Fund 14.48 18.77 Policy 11.83 14.03. Diff 2.65 4.74 Calendar Year Returns 03/3112007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 Fund 6.24 6.24 12.81 Policy 0.64 0.64 15.80 Diff 5.60 5.60 -199 RCIUII I' III Uy I dlI\CLS 1 Yr 10/26/2005 Incept Fund 16.6 25,1 Policy 13.5 18.7 Ratio 123.2 _ _ _ _ _ 134.2) 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. 10 Returns in Down Markets 10/26/2005 1 Yr Incept Fund -1.8 -1.8 Policy -1.4 =1.4 Ratio 125.0 125.0 Palm Beach Gardens General Employees' Domestic Equity & Cash - Rockwood Universe Comparisons Pure Large Cap Core Trailing Returns through March 31, 2007 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr I :j �r �7W 8 Yr Fund Return 11.83 16.58 14.48 %- tile - - - - -- 48 - - -- 48 -- 30 - - -� I % -tile 1 1 16 5th % -tile 2.64 2.64 20.97 11.33 Policy Return 7.38 13.46 11.83 35.03 25th % -tile 1.22 1.22 16.19 7.20 11.51 % -tile 40 31 31 22.80 50th % -tile 0.61 0.61 15.48 5.09 10.39 Universe 5th % -tile 9.44 15.61 16.30 14.01 12.83 18.51 8.95 8.54 8.64 7.37 25th % -tile 8.25 14.03 12.63 12.64 10.98 17.27 7.43 6.41 3.34 4.53 50th % -tile 7.30 13.25 11.49 11.59 9.91 15.69 6.11 5.03 0.75 2.79 75th % -tile 7.05 12.66 10.36 11.12 9.47 15.21 5.65 4.32 0.23 2.25 95th % -tile 5.94 10.85 5.98 9.04 6.97 13.01 3.47 1.25 -4.89 -0.75 Calendar Year Returns Qtr -YTD 2006 2005 20041 2003 2002 2001T 2000 1999 Fund Return % -tile 6.24 6.24 12.81 1 1 75 Policy Return 0.64 0.64 15.80 %- tile - - - - -- 48 - - -- 48 -- 30 - - -� I Universe 5th % -tile 2.64 2.64 20.97 11.33 15.14 33.34 -15.55 -1.49 13.61 35.03 25th % -tile 1.22 1.22 16.19 7.20 11.51 28.99 -20.13 -9.35 -0.20 22.80 50th % -tile 0.61 0.61 15.48 5.09 10.39 27.83 -22.23 -12.08 -7.39 20.27 I 75th % -tile 0.46 0.46 12.74 4.22 8.38 24.97 -23.39 -13.51 -9.63 16.39 95th % -tile -0.05 -0.05 4.79 1.07 I 5.14 20.58 -26.60 -19.10 -14.67 6.13 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, 2007 11 Palm Beach. Gardens General Employees' International Equity Executive Summary Account Reconciliation I railing Keturns tnrougn Iviarcn 31, zuut Investment Policy Index Weight MSCI EAFE 100.00 Total 100.00 11/07/2006 1 Yr .2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept Fund 11.11 Policy 9.91 Diff 1.20 Calendar Year Returns 03/31/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 Fund 4.18 4.18 Policy 4.15 4.15 Diff 0.03 0.03 Returns in Up Markets 11/07/2006 Incept Fund 11.1 Policy 9.9 Ratio 112.1 Inception date is November 7, 2006 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 12 Returns in Down Markets Fund Policy Ratio 11/07/2006 Incept 03/31/2007 Qtr 2007 YTD 11/07/2006 Incept Beginning Value 111 111 104 Net Flows 0 0 0 Investment G/L 5 5 12 Ending Value 116 116 116 I railing Keturns tnrougn Iviarcn 31, zuut Investment Policy Index Weight MSCI EAFE 100.00 Total 100.00 11/07/2006 1 Yr .2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept Fund 11.11 Policy 9.91 Diff 1.20 Calendar Year Returns 03/31/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 Fund 4.18 4.18 Policy 4.15 4.15 Diff 0.03 0.03 Returns in Up Markets 11/07/2006 Incept Fund 11.1 Policy 9.9 Ratio 112.1 Inception date is November 7, 2006 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 12 Returns in Down Markets Fund Policy Ratio 11/07/2006 Incept Palm Beach Gardens General Employees' International Equity Universe Comparisons International Equity Trailing Returns through March 31, 2007 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr !jr L 7 Yr 8 Yr Fund Return Policy Return 4.15 4.15 % -tile 36 36 Universe % -tile 6.96 6.96 35.29 38.92 32.32 65.72 1.26 2.71 2.11 117.71 Policy Return 4.49 % -tile 23.76 Universe 5th % -tile 22.89 27.67 24.92 34.10 28.41 38.94 27.23 23.41 14.55 19.74 25th % -tile 17.21 21.43 20.54 24.98 21.75 31.13 18.42 14.36 9.23 12.77 50th % -tile 14.63 18.95 18.45 22.56 19.33 27.64 15.29 11.69 4.93 8.93 75th % -tile 13.04 17.12 16.01 20.66 17.73 25.37 13.24 9.67 2.70 6.61 95th % -tile 10.99 14.06 12.56 17.46 14.95 22.93 11.18 6.59 -0.70 2.54 Calendar Year Returns Qtr YTD 2006 2005 2004 2003 1 2002 1 2001 1 2000 1999 Fund Return % -tile 4.18 35 4.1 35 Policy Return 4.15 4.15 % -tile 36 36 Universe 5th % -tile 6.96 6.96 35.29 38.92 32.32 65.72 1.26 2.71 2.11 117.71 25th % -tile 4.49 4.49 28.37 23.76 23.60 48.59 -8.48 -10.53 -8.63 67.62 50th % -tile I 3.75 3.75 25.65 16.31 19.34 38.92 -14.41 -18.53 -15.84 47.72 75th % -tile 2.74 2.74 22.79 13.13 16.57 33.20 -18.10 -23.29 -24.08 29.01 95th % -tile 1.58 1.58 18.65 9.40 12.66 27.55 -23.32 -29.32 -34.431 17.12 J Returns are in percent. "%- tile" is the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is November 7, 2006 to March 31, 2007 13 r M, Fund ( %) Policy ( %) Difference ( %) Ratio # Up Qtrs 3 Yr _ _ 5 Yr 10 Yr Incept Palm Beach Gardens General Employees' 16.73 General Employees Pension Plan 18.65 Up Market Returns -1.48 -1.92 106.32 25.00% 92.17 89.71 -- - -- 20.00% 8 -- - - - - -- 12.00 12.00 15.00% 10.00% - ` :3 �Ti. 333 & 5.00% h 3 33 n nn°i. - 3 Yr _ _ 5 Yr 10 Yr Incept 11.95 14.18 17.41 16.73 11.24 15.49 18.89 18.65 0.71 -1.31 -1.48 -1.92 106.32 91.54 92.17 89.71 9.00 14.00 28.00 38.00 Down Market Returns 0.00% - 5.00% 1- - -- - -- - 10.00% F -- - 15.00% -- 3 L- 55 Yr 10 Yr Incept Fund ( %) -2.49 -11.26 -12.27 -12.27 Policy ( %) -2.66 -12.35 -13.94 -13.94 Difference ( %) 0.17 1.09 1.67 1.67 Ratio 9 9 8 8 # Down Qtrs 3.00 6.00 12.00 12.00 Fund ( %°) Policy ( %) Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 14 $i $1 $1 v a $, 1 u e Palm Beach Gardens General Employees' General Employees Pension Plan Objective Comparison IVIUL JUL JVL UUL IVIV3 JU3 JU3 UU3 IVIU4 JU'+ OV4 UV4 IVIUO JUO JUO UVO MUD JUO JUq UUO IVIV/ Quarter Ending [ Fund =}- Policy �— Nominal 8% {] CPI + 4% Inception date is September 30, 1994 All dollar values are shown in thousands. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 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 + Manager Contribution = Fund Attribution of Manager Contribution between Asset Allocation and Security Selection Policy Manager Contribution Fund Current Quarter 1.13 3.36 4.49 Year to Date 1.13 3.36 4.49 3 Years 7.34 0.58 7.92 5 Years 6.32 -0.46 5.86 10 Years 7.91 -0.33 7.58 Incept 9.85 -0.86 8.99 Policy + Manager Contribution = Fund Attribution of Manager Contribution between Asset Allocation and Security Selection Asset Allocation + Security Selection = Manager Contribution Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 17 Asset Allocation . Security Selection Manager Contribution Current Quarter -0.68 4.04 3.36 Year to Date -0.68 4.04 3.36 3 Years -3.12 3.70 0.58 5 Years -2.93 2.47 -0.46 10 Years -3.54 3.21 -0.33 Incept -4.371 3.51 -0.86 Asset Allocation + Security Selection = Manager Contribution Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 17 10.00% P e r 5.00% c e n t E f 0.00% f e c t - 5.00% 10.00% P e r 5.00% c e n t E f 0.00% f e c t -5.00% Palm Beach Gardens General Employees' General Employees Pension Plan Asset Allocation Effect -- /,. - - -- - ------------------------------------------------------------------------- JOZ 502 DUZ M03 J03 503 D03 M04 JD4 SO4 D04 M05 J05 505 D05 M06 J06 S06 D06 M07 Quarter Ending r Security Selection Effect Quarter Ending Quarterly Effect Cumulative Effect Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 18 Security Selection Effect Quarter Ending Quarterly Effect Cumulative Effect Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 18 a, Palm Beach Gardens General Employees' General Employees Pension Plan Asset Allocation vs Targets 80.00% -- - 70.00% ------------------------------------------------- -------- -------------- 60.00% - - - - -- --------------------------- - - - - -= 50.00% ------------------------------------ ------------------------------------------------------ 40. 00%---------------------------------------- ----------------------------------------------------- 30.00% --------------------------------------------- ----------------- - ---------------- - - - - -- 20.00% ---------------------------------------------------------------- 10.00 %, - - - - -- - -- — ---------- - --------------------------------- - - - - - - ---------------------- 0.00 %_ Quarter Ending �® Cash & Equiv Target 1 JUZ JUZ UUZ MUJ JUJ JUJ UUJ MU4 JU4 5U4 UU4 MUb JUb 5Ub UUb MUb J05 SU6 DUb M07 Quarter Ending Equity —+ -- Target " J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 J06 S06 D06 M07 Quarter Ending Fixed Income = Target Index change effective 1/1106 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 19 Palm Beach Gardens General Employees' General Employees Pension Plan Asset Allocation vs Targets 70.00% ------------------------------------------------------------------- - - - - -- --------------- 60.00% - - - - - -- ------------------------------------------------------------------------ - - - - -- 50.00% ---------------------------------------------------------- 40.00% --- ...---------------------------------------------------------------------------------------- 30.00% --------------------------------- ------------------------- - - - - -- ------------------------=--- 20.00%------------------------------------- ---------------------------------------------------- 10.00% ---------------------------------------------------- ------------- -- - - -- ----------- � - - --- -. 0'00% J02 SS602 N(03 J�3 603 M04 J6'4 Sd4 Db4 M65 J� 605 M06 JO6 S 6"6 6 M07 Quarter Ending ® Foreign Fnds --+, - Target Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 20 Palm Beach Gardens General, Employees' General Employees Pension Plan Manager Contribution ---------------------------------------------------------------------------------- -------------------------- ------------------------------------------------ ---------- ------------------------------------------- - - - -- - - -- \ ----- - - - - --- ------------------------------------------------------ qn? nnq mn.q ins Sna WR none AnA ' nd and Mnr, mr, cnr nnF nano Ina C-rLICZ nna Kern Quarter Ending Quarterly — Cumulative Growth of $100 Fund vs Policy $80ULM—M. M02, JO; S02 Index change effective 1/1/06 fri D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J( Quarter Ending Fund )m LB Gov/Credit to LB Aggregate 1/1/2007 International added to Policy 21 S05 D05 M06 J06 S06 D06 M07 5.00% 4.00% 3.00% 2.00% R e t 1.00% u r 0.00% n -1.00% -2.00% -3.00% Palm Beach Gardens General, Employees' General Employees Pension Plan Manager Contribution ---------------------------------------------------------------------------------- -------------------------- ------------------------------------------------ ---------- ------------------------------------------- - - - -- - - -- \ ----- - - - - --- ------------------------------------------------------ qn? nnq mn.q ins Sna WR none AnA ' nd and Mnr, mr, cnr nnF nano Ina C-rLICZ nna Kern Quarter Ending Quarterly — Cumulative Growth of $100 Fund vs Policy $80ULM—M. M02, JO; S02 Index change effective 1/1/06 fri D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J( Quarter Ending Fund )m LB Gov/Credit to LB Aggregate 1/1/2007 International added to Policy 21 S05 D05 M06 J06 S06 D06 M07 Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis ($) Period End ng Fund, Policy Diff Nominal 8% Diff CPI + 4% Diff 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 11365 168 1,338 195 Mar 1996 1,634 1,697 -62 1,452 182 1,431 203 Jun 1996_ 1,688 1,752 -64 1,486 202 227 Sep 1996 1,728 1,800 -72 1,518 210 -----1,461 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 -466 2,033 757 1,890 900 _ Sep 1999 _ _ 2,647 _ _3,2_56 - 3,131 _ -484 _ 21063 584 1,917 730 Dec 1999 2,821 3,391 -570 2,095 726 1,934 887 f Mar 2000 2,907 3,490 -583 2,149 758 1,999 907 Jun 2000_ 2,843_ 3,432 -589 2,167 67_5_ 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 I -258 2,243 603 2,061 785 Jun 2001 2,927_ 3,183 I_J -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 1 410 Mar 2003 2,385 2,609 -224 2,345 41 2,068 318 Jun 2003 2,534 2,852 I -317 2,358 176 2,050 _ 484 2,38$ I 160 2,056 477 Dec 2003 2,680 3,036 -356 292 2,035 645 All dollar values are shown in thousands. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 22 Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis ($) Period Ending Fund Policy Diff Nominal 8% Diff CPI + 4% Diff 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 2_005 2,717 _ -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 _Jun 2006 2,765 3,162 -396 2,581 184_ 2,159 606 Sep 2006 _ _ 2,834 3,276 -442 2,591 242 2,141 692 Dec 2006 2,906 3,386 -481 2,605 300 2,116 790 Mar 2007 2,979 3,369 -390 2,599 380 2,116 863 All dollar values are shown in thousands. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 23 Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis ( %) Period Fund Policy Diff Nominal 8% Diff CPI + 4% Diff End ng Dec 1994 -1.67 0.16 -1.83 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 Dec 1995 _ 5.46 _ 5.49 -0.03 __ 1.94 3.52 _ 1.08 4.38 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 2.61 -0.39 1.94 0.28 1.69 0.53 -- Dec 1996 - -- 5.12 --- - - - - -- -- 6.23 - -1.11 - 1.94 - -- 3.18 1.49 3.63 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 5.95 2.71 1.94 6.72 1.49 7.17 Dec 1997 0.59 3.06 -2.47 1.94 -1.35 0.99 -0.40 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 1.29 -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 -4.78 -3.56 -1.22 1.94 -6.72 1.99 -6.77 Dec 1999 -� -- -- -6.89 -- - - 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 200_0_ 3.54 - 0.63 1.94 1.60 1.69 1.85 _ Dec 2000 -- - - - -- - -0.95- -- - - - - -- -3.01 _2.91 - - -- 3.96 _ � 1.94 _ - -- -0.99 _ 1.19 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 6.32 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 200_2 -7.51 -8.45 0.94 1.94 -9.45 1.59 ' -9.10 Dec 2002 _ _ 3.08 5.95 -2.87 _ 1.94 1.14 0.98 2.10 Mar 2003 -1.47 -1.24 -0.23 1.94 -3.41 2.80 -4.27 Jun 2003 7.62 10.56 -2.94 1.94 5.68 0.69 6.93 Sep 2003 _ - 1.16 - 1.44 -0.28 _ - 1.94 -0.78 1.79 -0.63 Dec 2003 7.08 7.21 -0.13 1.94 5.14 0.49 6.59 Mar 2004 2.67 2.25 0.42 1.94 0.73 2.59 0.08 Returns for periods exceeding one year are annualized. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 24 Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis ( %) Period Fund Policy Diff Nominal 8% Diff CPI + 4% Diff Ending Jun 2004 -0.24 -0.25 0.01 1.94 -2.18 2.19 -2.43 Sep 2004 -0.38 _ 0.30 -0.68 1.94 -2.32 1.08 -1.46 Dec 2004 _ J 6.17 5.82 0.35 1.94 4.23 1.18 4.99 Mar 2005 -1.19 -1.54 0.35 1.94 -3.13 2.59 -3.78 Jun 2005 1.32 2.21 -0.89 1.94 -0.62 1.69 -0.37 Sep 2005 1.75 1.79 -0.04 1.94 -0.19 -1.45 Dec 2005 _ _ _ 2.07 _ 1.50 0.57 1.94 0.13 _3.20 -0.01 2.08 Mar 2006 2.71 2.25 0.46 1.94 0.77 2.59 0.12 Jun 2006 -1.09 -0.89 -0.20 1.94 -3.03 2.59 -3.68 Sep 2006_ 3.95 4.92 - 0.97_ 1.94 2.01 0.98 2.97 Dec 2006 _ _ 3.84 4.49 _ -0.65 1.94 1.90 0.49 3.35 Mar 2007 4.49 1.13 3.36 1.94 2.55 2.69 1.80 Incept. 8.99 9.85 -0.86 8.00 0.99 6.56 2.43 Returns for periods exceeding one year are annualized. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate •1/1/2007 International added to Policy 25 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 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. 26 Palm Beach Gardens General Employees' General Employees Pension Plan Risk Measures 3 Yr Fund Policy Diff # of Negative Qtrs 4.00 3.00 1.00 # of Positive Qtrs 8.00 _ 9.00 -1.00 Batting Average 50.00 50.00 0.00 Worst Qtr -1.19 -1.54 0.35 Best Qtr 6.17 5.82 0.35 Range 7.36 7.36 0.001 Worst 4 Qtrs 3.98 3.97 0.01 Standard Deviation 5.33 4.39 0.94 Beta 1.09 1.00 0.09 Annualized Alpha 0.24 0.00 0.24 R- Squared 0.81 1.00 -0.191 Sharpe Ratio 0.86 0.91 -0.05 Treynor Ratio 4.20 4.00 0.20 Tracking Error 2.33 0.00 2.33 Information Ratio 0.25 10 Y_ r Fund Policy Diff _ # of Negative Qtrs _Fund 1.4.00 12.00 _Diff 2.00 # of Positive Qtrs 26.00 28.00 -2.00 Batting Average 45.00 55.00 -10.00 Worst Qtr -7.51 -8.45 0.94 Best Qtr 11.16 12.51 i -1.35 Range 18.67 20.96 -2.291 Worst 4 Qtrs -11.63 -12.21 0.58 Standard Deviation 8.12 9.06 -0.94 Beta 0.82 1.00 -0.18 Annualized Alpha 0.42 0.00 0.42 R- Squared 0.84 1.00 -0.16 Sharpe Ratio 0.48 0.47 0.01 Treynor Ratio 4.77 4.24 0.53 Tracking Error 3.68 0.00 3.68 Information Ratio -0.09 5 YYr Fund Policy Diff # of Negative Qtrs 7.00 6.00 1.00 # of Positive Qtrs 13.00 14.00 -1.00 Batting Average 45.00 55.00 -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 6.31 7.11 -0.80 Beta 0.81 1.00 -0.19 Annualized Alpha 0.25 0.00 0.25 R- Squared 0.85 1.00 -0.15 Sharpe Ratio 0.53 0.54 -0.01 Treynor Ratio 4.14 3.81 0.33 Tracking Error 2.80 0.00 2.80 Information Ratio -0.16 Incept Fund Policy Diff _ # of Negative Qtrs J ` 15.00 12.00 3.00 # of Positive Qtrs 35.00 38.00 -3.00 Batting Average 40.00 60.00 -20.00 Worst Qtr -7.51 -8.45 0.94 i Best Qtr 11.16 12.51 -1.35 Range 18.67 20.96 -2.29 Worst 4 Qtrs -11.63 -12.21 0.58 Standard Deviation 7.76 8.70 -0.94 Beta 0.80 1.00 -0.20 Annualized Alpha 0.28 0.00 0.28 R- Squared 0.82 1.00 -0.18 Sharpe Ratio 0.64 0.67 -0.03 Treynor Ratio 6.21 5.83 0.38 Tracking Error 3.71 0.00 3.71 Information Ratio -0.23 Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 27 13.00% 12.00% 11.00% 10.00% A n n u a 9.00% z e d 8.00% R e t u r 7.00% n 6.00% 5.00% 4.00°/ B.UU -/0 J Iv1U 1 6111 Palm Beach Gardens General Employees' General Employees Pension Plan Return vs Risk through March 31, 2007 9.uu% 10.00% 15.00% 20.00% Risk (Annualized Std Dev) —�— Policy Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy Palm Beach Gardens General Employees' General Employees Pension Plan Return vs Risk through March 31, 2007 3 Years 12.00% 11.00% 10.00% 9.00% R 8.00% e t 7.00% u r 6.00% n s 5.00% 4.00% 3.00% 200% 500 1.00% 3.00% 5.00% 7.00 %' 0.00% 2.00% 4.00% 6.00% 8.00% Risk (Annualized Std Dev) 10 Years 10.00% 9.00% 8.00% R 7.00% e u 6.00% r n s 5.00% 4.00% I - - -- e L S &P -�, Fund 3 Mo TBill and L Gov /Corp 3 Mo TBill i 500 1.00% 3.00% 5.00% 7.00 %' 0.00% 2.00% 4.00% 6.00% 8.00% Risk (Annualized Std Dev) 10 Years 10.00% 9.00% 8.00% R 7.00% e u 6.00% r n s 5.00% 4.00% I - - -- - - - -- &P -�, S &P 500 =F LB Gov/ and -i- LB Gov Corp I I 3 Mo TBill i 3.00% 5.00% 15.00% 25.00% 0.00% 10.00% 20.00% Risk (Annualized Std Dev) 7.00% 6.50% 6.00% 5.50% R e 5.00% t r 4.50% n S 4.00% 3.50% 3.00% 2.50h 5 Years Risk (Annualized Std Dev) Inception 13.00% 12.00% 11.00% 10.00% R e 9.00% t u 8.00% r n s 7.00% 6.00% 5.00% 4.00 S &P 500 S &P 500 =F LB Gov/ and LB ov /Corp 0 0,8 Mo TBO13% 10.00% 15.00% 20 -0 Risk (Annualized Std Dev) Inception 13.00% 12.00% 11.00% 10.00% R e 9.00% t u 8.00% r n s 7.00% 6.00% 5.00% 4.00 0.00 0/3 Mo -MID% 10.00% 15.00% 20.00% Risk (Annualized Std Dev) ILL Policy Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/11/2007 International added to Policy 29 S &P 500 and =F LB Gov/ orp 0.00 0/3 Mo -MID% 10.00% 15.00% 20.00% Risk (Annualized Std Dev) ILL Policy Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/11/2007 International added to Policy 29 a 4'� Palm Beach Gardens General Employees' General Employees Pension Plan Policy: 09/30/1994 - 12/31/2005 60.00 S &P 500 40.00 Lehman Gov /Credit Bond 01/01/2006- 12/31/2006 60.00 S &P 500 40.00 Lehman Aggregate Bond 01/01/2007- 03/31/2007 60.00 S &P 500 35.00 Lehman Aggregate Bond 5.00 MSCI EAFE First Objective: 09/30/1994- 03/31/2007 Annual Return of 8.00% Second Objective: 09/30/1994- 03/31/2007 100.00 US Consumer Price Index + 4.00 annual adder Universe Data: 60% PLCC, 35% HQB & 5% International 09/30/1994 - 12/31/2006 40.00 High Quality Bond 60.00 Pure Large Cap Core 01/01/2007- 03/31/2007 35.00 High Quality Bond 60.00 Pure Large Cap Core 5.00 International Equity 30 BOGDAHN CONSULTING LLC. simplifying your investment decisions City of Palm Beach Gardens GENERAL EMPLOYEES" RETIREMENT SYSTEM March, 2007 uwill wo: www.bogdahnconsulting.com 340 West Central Avenue Suite 300 ♦ Winter Haven, Florida 33880 Telephone (863) 293 -8289 ♦ Facsimile (863) 292 -8717 Performance Evaluation for Palm Beach Gardens General Employees Pension Plan Rockwood & Sawgrass For the Period Ending March 31, 2007 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 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 Account Reconciliation 03/31/2007 Qtr Executive Summary Investment Policy 2007 09/30/1994 YTD Inceptl 11ndex ....I ......................... ............................. 8(46hirig W!1001 . .... ........................I...... ...... ............................... x,908` : 9t�6 1 A79: .... Net Mows 56 _56: .;`:::.':?464: :::: <: 100.00 investment'GI.L ..:: ` . :::.129:.. ;... 1:29:. :::.::2;1364.. 09/30/1994 rtdt V. I ..... a ........ 9 .................. 2 9?`9.... ..... r............................r. Z, 9 . ... Trailing Returns through March 31, 2007 Weight .......... _ _ _. S.W. 500 _ ...... 60:00 . Aggregate Bond L.... 35.00 ..... ... .. MSG I: ,t!►f : ........:: ...... .. ..e....h......m.............a........n .. :.. 5.00 I~. .............. .... . ?.................... :::: <: 100.00 Calendar Year Returns 03/31/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 clq. 4.49 4.49 < 9.66 3.98 8.33 14.87 .: -9.90 0.84 5.74 7:81 09/30/1994 Polley?: ... ... 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept Fijbd . 11 56 :: 9.80: 7.92 10-75:::::::::':5 .8$ 5::54::_ 4.80. 5.62 5.22 7.58 8.99 Polity 990 8.93 7.34 11.05 6.32 566 3.41 4.38 ::::::.5.43 7:91 9.85: .iF :: >...:,fyfi ..: 0,8V:::::0,58 0::58 A.3 0:46 -© 12 1::39:: .: 1.24 Y0.21 -0:3:3 .. Calendar Year Returns 03/31/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 clq. 4.49 4.49 < 9.66 3.98 8.33 14.87 .: -9.90 0.84 5.74 7:81 -11.27 l' Polley?: ... ... 1.13 1.13.::::: 11.12 3.97 8.25 18.76. -9.53 -3.67 -0.92 11.40 21.35 ..... #�lff . ..... 3.36 3.36 1:46 0.01 0.08 .... -3.89: .... 0.37 4.51 ... 6.66 -3.59 1.0:08 Returns in Up Markets Returns in Down Markets 09/30/1994 3 Yr 5 Yr 10 Yr Incept ttsld ... 12 0.:: . .......... 34:2 ...: . 17 4 .. .. 17 :Policy . ............ ;..11:2...:::` 15 5 .: ... X8.9 .. .... 1:8,7: Rat[o .:::.: ,.. ;:106.x. .....: 91 b...... ..... . .2 85a 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. 09/30/1994 3 Yr 5 Yr 10 Yr Incept fi ...:? -11.3 -12.3 -12.3 ................. ft.- Icy:.....2.7 = 12.3 -13.9 #patio 93:8 91.2 88.0 88aQ: Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy FA Palm Beach Gardens General Employees Pension Plan Asset Allocation as of March 31, 2007 Equ 68' At Market Cash & Equiv 5% Equit 64% At Cost Cash & Equiv 5% ixed Income 27% Fixed Income 31% Equity Limitations 65 @ Cost s 70 @ Market 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 1st through December 31st. 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. 4 Palm Beach Gardens General Employees' General Employees Pension Plan Universe Comparisons 60% PLCC, 35% HQB & 5% International Trailing Returns through March 31, 2007 Calendar Year Returns 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr ............................................................................................................. ............................... ............................................................................................................. ............................... ...... Ftu Return 11.56 9.80 7.92 10.75 5.86 5.54 4.80 5.62 5.22 7.58 % -tile 16 15 33 69 54 40 24 24 34 31 ............................................................................................................. ............................... ............................................................................................................. ............................... PQticy Return 9.90 8.93 7.34 11.05 6.32 5.66 3.41 4.38 5.43 7.91 % -tile 37 49 56 57 35 38 42 41 26 20 . .... Unlvecs .... ..... ... 5th % -tile 12.72 10.35 9.30 13.05 7.78 7.55 7.65 6.83 6.63 8.73 25th % -tile 10.78 9.52 8.31 12.10 6.72 6.15 4.55 5.48 5.45 7.70 50th % -tile 9.59 8.89 7.45 11.22 5.94 5.31 3.10 4.14 4.95 7.28 75th % -tile 8.56 8.45 6.93 10.55 5.27 4.73 2.48 3.49 4.41 6.73 95th % -tile 5.59 6.92 5.27 9.09 3.91 3.22 0.22 1.89 2.93 5.27 Calendar Year Returns Returns are in percent. " %a -tile" is the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is September 30, 1994 to March 31, 2007 Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 5 Qtr YTD 1 2006 2005 2004 2003 20021 2001 1 2000 1999 ............................... .................... ............................... .. . ........... .. ............................. ..... _ .................. .............................. _ . ........ . ,. ....... ............................... ..... Tuhd-................... . ...... . .. Return 4.49 4.49 9.66 3.98 8.33 14.87 -9.90 0.84 5.74 7.81 % -tile 1 1 80 53 45 100 64 18 23 70 ................... ....... ...... .............. .............. ......... .... ... ... ............. .. .... . PoflCy Return 1.13 1.13 11.12 3.97 8.25 18.76 -9.53 -3.67 -0.92 11.40 % -tile 52 52 51 53 47 47 57 54 62 58 . .... Unlvecs .... ..... ... 5th % -tile 2.35 2.35 14.36 6.30 11.02 21.83 -4.21 3.98 13.73 24.88 25th % -tile 1.50 1.50 12.34 4.79 9.42 19.66 -7.10 -1.46 5.06 13.98 50th % -tile 1.15 1.15 11.13 4.03 8.17 18.64 -9.31 -3.59 -0.23 11.98 75th % -tile 0.95 0.95 10.02 3.57 7.28 17.66 -10.57 -4.80 -1.67 4.41 95th % -tile 0.35 0.35 6.06 2.66 5.50 16.00 -13.13 -10.62 -4.54 -0.84 Returns are in percent. " %a -tile" is the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is September 30, 1994 to March 31, 2007 Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 5 Palm Beach Gardens General Employees' Total Fixed Income Executive Summary Account Reconciliation 03/31/2007 2007 09/30/1994 Qtr YTD Incept 113 g0 hing Value 949 949 4.06 :filet Flows .: 13..:::. -13 4'1:.: *i4ostment G %C :::: 11 11 �4 68i :.:. Ei #ing Yalu:::;::: `........ > <`$48``:: `:: 948 : ::;:;:;:;:;94 1:: Trailing Returns through March 31, 2007 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 5.53 4.06 277 w....3.08 4.79 4.47 5.18 �4 68i :.:. 4.90 5.53 5.96: 06fley 6.58::*:::, 4.46 :{i9 ` :::3 $5 5.69 5.51 6.47 5:8t'r 5.94 6.56 > :..6:91: Ditf 1:45 0.40 -a;32 (# 7i 0 90 ,1 0�# 1.29 0.73 : -5.34 0.78 -0.48 Calendar Year Returns 03/31/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 : j 1 ::::::? : ; .. 1.20 1.20 3.84 2.65 - 3,16 -- 2,83 9.23 924 6.50 1 37 8:99: Policy;:. : 1 :50 1.50 4.33 2.34 4.21 4.68 11.02 8.51 11.84 -2.15 9.47 -0.30 -0.30 -0.49 :A.81 -1.05 -1.85 -1.79 0.73 : -5.34 0.78 -0.48 Returns in Up Markets ...... :: = >:33: >: ;.. .............. .1 3:5 :Pof!s j! :::::.:.::: :.:................. : >:::::.............: 09/30/1994 3 Yr 5 Yr 10 Yr Incept . .............. fi)hd T; .' . .. 9.3 . .. .... 1?olicy ;$ »: ?: ;.11.0 '10,G 10;1: ,. . :Rtio 85.5::::-:::: 85.0,: 86:7: 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. Returns in Down Markets 09/30/1994 3 Yr 5 Yr 10 Yr Incept :uf >- :::.:::?3:5:: ...... :: = >:33: >: ;.. .............. .1 3:5 :Pof!s j! :::::.:.::: :.:................. : >:::::.............: -3,3 -3.8 ? .:::.:: :..:.:$Q¢ .::` :89Q:.:. g2,2_ 91;8 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 Account Reconciliation 03/31/2007 Qtr #3egifiritiig Value 949 Net Flows -13 ................:......:.. 11 Executive Summary 2007 10/26/2005 YTD Incept 949 ................ 1 i044< ............... -13 -:1i 1: 11 65 :11=i dai►ig:V lu ;::::: :': 94 948 94 Trailing Returns through March 31, 2007 Investment Policy Index Weight 10/26/2005 Calendar Year Returns Returns in Up Markets 1 Yr 10/26/2005 Incept ........... 03/31/2007 2007 ...... is y T : ' Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 F t1d 1.20 1.20 3.84 . .. . :Policy 1.50 1.50 4.33 '. ........ -0.30 i3:3Q ........... .. . .... -0.49 .. . . Returns in Up Markets 1 Yr 10/26/2005 Incept ........... . .... .: : ` ::: . ..:: .... ..........................: : . .,. , . .1. : . ...... is y T : ' . . 8;a : quo ....... 81.3 ::: 86:5: 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 Returns in Down Markets 10/26/2005 1 Yr Incept 0. :il~tittd ...... .. 1 :; -0.3 . :Poff :: >:.: :.. -0.1 : ? ........... . . -0.7 fxatio . ' _125.0 ::: 44.4 Palm Beach Gardens General Employees' Total Equity Executive Summary Account Reconciliation 03/31/2007 2007 09/30/1994 Qtr YTD Incept ..................................... 8egr0ri►rig value I.............................. ..x;932:......1,932 MSCI: E:. <..:.. :.: : » >::. ::.. 622: ltilet �lgv✓s ...... .... . ;: - 2D:::::;:: :, -20 ........ =325 e5trlieni . . ................19.. 118 1,.7.3..3 .... ............................... ............... Eiit3i vale .........!�........� .....:: . ::2;ff30:: . 2;03.. 2,030:: Trailing Returns through March 31, 2007 Investment Polic Index Weight &P $00 :..:.:: 95.00 MSCI: E:. <..:.. :.: : » >::. 5.00. .'tiff ..:...:.:.:.:.:::. ?.::::..:.: .... >: ....... 1 Calendar Year Returns 03/31/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 -- -- ...... u id ::: 6,12 6.12 12.95 4.52 11 4 ..22;83 21,03 4112 5.29 14.26 12:39 P.oltCyr 0.81 0.81 15.80 4.91 10.88 28.68 22.10 - 11.88 -9.11 21.04 28.58 . Qitf 5.31 5.31 -2.85 -0.39 0.56 -5.85 1.07 7.46 14.40 76.78 -16.19 Returns in Up Markets 09/30/1994 3 Yr 5 Yr 10 Yr Incept 17.6 2 ........................ . 2 � :- ... 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 14.50 12.90 10.76 15.53 6.04 5.68 4.10 5.82 5.10 8.42 - -- 10:52 P0IC.y 12:03 11.88 10.12 15.90 6.30. 527 0.92 2:90 4.52 8:22 11.34 #tiff 2;47 1.02 0.64 -.0137 --0.20 0:41 3 8:.:: 2:92. :0:58 0.20 -0:82 Calendar Year Returns 03/31/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 -- -- ...... u id ::: 6,12 6.12 12.95 4.52 11 4 ..22;83 21,03 4112 5.29 14.26 12:39 P.oltCyr 0.81 0.81 15.80 4.91 10.88 28.68 22.10 - 11.88 -9.11 21.04 28.58 . Qitf 5.31 5.31 -2.85 -0.39 0.56 -5.85 1.07 7.46 14.40 76.78 -16.19 Returns in Up Markets 09/30/1994 3 Yr 5 Yr 10 Yr Incept ils�d 1 17.6 2 ........................ . 2 � :- ... 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 Fund 5.7 .... -22.8 22:1 -21;4: Poflcy ..:.... -5.4 2d,5 -26.3 -24.7 Ratao 106.5 .. :::93.1 I.. Rockwood assumed account 10 -26 -05 $ 1,565,898.88 International bought 11/9/2006, will be added to Policy 1/1/2007 I Rockwood assumed account 10 -26 -05 $ 1,565,898.88 International bought 11/9/2006, will be added to Policy 1/1/2007 I Palm Beach Gardens General Employees' Total Equity Universe Comparisons 95% Pure Large Cap Core & 5% International I ralimg meturns inrougn March 31 , 200 t Calendar Year Returns 1 Yr 1 2 Yr 1 3 Yr 1 4 Yr 1 5 Yr 1 6 Yr 1 7 Yr 1 8 Yr 9 Yr 1 10 Yr Ftarld ; . ::. Return 14.50 12.90 10.76 15.53 6.04 5.68 4.10 5.82 5.10 8.42 % -tile 17 19 32 65 60 38 25 20 24 31 ...:...:..:.:...:.:.:. ..............;.......;........ PoElcy........: ... Return 12.03 11.88 10.12 15.90 6.30 5.27 0.92 2.90 4.52 8.22 % -tile 31 39 41 41 41 43 46 48 36 36 1ni>terse 5th % -tile 16.49 14.03 12.98 18.57 8.99 8.54 8.15 7.39 6.80 9.98 25th % -tile 12.72 12.68 11.01 17.24 7.43 6.42 3.98 4.42 4.93 8.56 50th % -tile 11.65 11.71 9.97 15.73 6.16 5.07 0.79 2.80 4.28 7.95 75th % -tile 10.31 11.18 9.45 15.21 5.64 4.43 0.29 2.34 3.75 7.27 95th % -tile 5.16 8.84 6.57 12.17 3.02 1.59 -3.18 -0.64 1.19 4.80 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, 2007 Rockwood assumed account 10 -26-05 $ 1,565,898.88 International bought 11/9/2006, will be added to Policy 1/1/2007 Qtrl YTD 2006 2005 2004 2003 2002 2001 2000 1999 . . .. Return 6.12 6.12 12.95 4.52 11.44 22.83 -21.03 -4.42 5.29 14.26 % -tile 1 1 82 71 33 100 39 15 22 72 ...:...:..:.:...:.:.:. ..............;.......;........ PoElcy........: ... Return 0.81 0.81 15.80 4.91 10.88 28.68 -22.10 -11.88 -9.11 21.04 % -tile 46 46 30 48 38 27 49 43 53 29 ..... ................ ..... .. U.nl wi6 5th % -tile 2.71 2.71 21.15 8.71 14.89 31.24 -13.58 1.56 13.51 36.89 25th % -tile 1.37 1.37 16.72 6.33 12.34 28.75 -19.53 -8.37 0.50 21.96 50th % -tile 0.78 0.78 15.51 4.87 10.68 28.09 -22.16 -12.08 -8.22 20.37 75th % -tile 0.57 0.57 13.84 4.37 10.10 26.61 -22.68 -12.50 -9.58 8.28 95th % -tile -0.28 -0.28 7.76 3.31 6.49 23.80 -26.81 -22.21 -14.98 -2.18 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, 2007 Rockwood assumed account 10 -26-05 $ 1,565,898.88 International bought 11/9/2006, will be added to Policy 1/1/2007 Palm Beach Gardens General Employees' Domestic Equity & Cash - Rockwood Executive Summary Account Reconciliation 03/31/2007 2007 10/26/2005 Qtr YTD Incept :9.06.fng Value .. 1;82# 1;821 < >:1,566: .. ::'Net Flows .... >Dif.:? 2.65 `:.:.:: : > ...::::::::::::::: :> ...::: ir;vestirteri> : >::::: ............................ .......... ............................... ............... ............................... »:.... ...... 1 3 >:::: 434'. _.. .......... ................I.............. ............... ............................... : i c# : Valuie ; >?::::::` :::::.:.:.:...:.:1s ................ ............................... 4 :.`:::::;1 914 .................... 1;914;: Trailing Returns through March 31, 2007 Investment Policy Index Weight 10/26/2005 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept fund ........... ..: _ 14.48 :.:.:.:.::.:.: .......................... ...... ,.......... _�... .:.:.: .:.:. .: ..... ..... . - P'01icy :.... 11.83 ... .. ............ . ,.. . . . : . 1 >Dif.:? 2.65 `:.:.:: : > ...::::::::::::::: :> ...::: 4.74:: Calendar Year Returns 03/31/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 ,. ,.. :F>ai 166 :::> ::::::: :::::::: 6 24::':::::l - 2.81 :Policy 064 0.64 15.80 miff 560 5:60 ................................. , -2.99 Returns in Up Markets 1 Yr 10/26/2005 Incept iiiid:::: 166 :::> ::::::: :::::::: _. >:::::::::::::::::::::: 28.1. . ..:i............. :: 13,5 1 , . ..:..:::.:.: X123.2 :......:::::..:?; .::.:.:: ':. .:434:2:: 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. 10 Returns in Down Markets 1 Yr 10/26/2005 Incept �Y... ...................... 1, . 'ftio ...::.: 125.0 .., ...... .` .12Q Palm Beach Gardens General Employees' Domestic Equity & Cash - Rockwood Universe Comparisons Pure Large Cap Core I IainlIy rWILL11IIS utIuuyn IvlarGn 31, Zuuf Calendar Year Returns 2 Qtrs 1 3 Qtrs 1 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr . . :Fund > .:.:::..> :...::.. . Return 11.83 16.58 14.48 -tile 1 1 16 `. ...... ..... ............. ............ .....:.................::...... ..:.......... .... ..:.. :......... .... PQ ..... Return 7.38 1 3.4 6 1 1.8 3 % -tile 40 31 31 iJniver� 5th % -tile 9.44 15.61 16.30 14.01 12.83 18.51 8.95 8.54 8.64 7.37 25th % -tile 8.25 14.03 12.63 12.64 10.98 17.27 7.43 6.41 3.34 4.53 50th % -tile 7.30 13.25 11.49 11.59 9.91 15.69 6.11 5.03 0.75 2.79 75th % -tile 7.05 12.66 10.36 11.12 9.47 15.21 5.65 4.32 0.23 2.25 95th % -tile 5.94 10.85 5.98 9.04 6.97 13.01 3.47 1.25 -4.89 -0.75 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 October 26, 2005 to March 31, 2007 11 Qtr YTD 2006 2005 1 2004 1 2003 2002 2001 2000 1999 ....................... ................. ... ....... ...... ........ . Return 6.24 6.24 12.81 % -tile 1 1 75 ,_...... .. .... .... .... .. .................. ........ .. ..... :PofiCy.:.. ,. .. .. . . Return 0.64 0.64 15.80 % -tile 48 48 30 iJniver� 5th % -tile 2.64 2.64 20.97 11.33 15.14 33.34 -15.55 -1.49 13.61 35.03 25th % -tile 1.22 1.22 16.19 7.20 11.51 28.99 -20.13 -9.35 -0.20 22.80 50th % -tile 0.61 0.61 15.48 5.09 10.39 27.83 -22.23 -12.08 -7.39 20.27 75th % -tile 0.46 0.46 12.74 4.22 8.38 24.97 -23.39 -13.51 -9.63 16.39 95th % -tile -0.05 -0.05 4.79 1.07 5.14 20.58 -26.60 -19.10 -14.67 6.13 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, 2007 11 Palm Beach Gardens General Employees' International Equity Executive Summary Account Reconciliation 03/31/2007 2007 11/07/2006 Qtr YTD Incept e$i[irixrl. Value <; :::> ::: >: 111 111 10$: �`slet Flows :::: »::::::: > 0 0 : >: 0 irWib&tM.e , 01L: <::: >:::::::: 5 5 < 12 rdiig Value;; > » >::: >::1: 11G Trailing Returns through March 31, 2007 Investment Policy Index Weight 11/07/2006 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept ....................I... .... ............................................ ...... ...... .. .. ... tid .. .:........::.:.. ............................... .......... . . ................ ..... ....... . ... .... . .. .:.:....:.:::. ... ::« .: ........... .... .. li Po c Y .. .... ©iff ;.. <:.... ;::::: <:::::: < . ... .. ........ ........................... Calendar Year Returns 03/31/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 P. i `:: ::: ..d ...... ....... ..................... ............. .': 4.18 4,18 :::::::::::: :::::::::: `:::::::::::::::': :::::::::: :::::::::: .... ......... :....:::::::::::::::: .......................... ....... ..... .................. I ........ I .............. ................................................................. ............................... ........... ............................... .... .. ...................... ..................... .............. ............. :Poli .... 4.15 .................................................. ............................... ................................................................. ............................... ................................................ ............................... ................................................................ ............................... ... 4.15 . .. ... ... . .... ... .. . .. tiff 0.43 0.03 Returns in Up Markets 11/07/2006 Incept Pt�r1d .... .: . . :.:.::..:.:.... Pot'e .....................:......... . `;g Riatto . ............. ........ 1 ...�.:: ........... Inception date is November 7, 2006 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 12 Returns in Down Markets Putttl .. . 11 P -j ` .............. Y...........: f!tato :::.::.:: 11/07/2006 Incept Palm Beach Gardens General Employees' International Equity Universe Comparisons International Equity I railing Keturns tnrougn March 61, 1uu / Qtr 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6' 7 Yr 8 Yr Return Return 4.18 % -tile % -tile 35 Pb[Ij< ;... :::.:.:.:.:.:.:.:.:.:.. ........ . ... Return 4.15 % -tile % -tile 36 ... . .......... . ........ ....................... . ........ .,.. .. 5th % -tile 22.89 27.67 24.92 34.10 28.41 38.94 27.23 23.41 14.55 19.74 25th % -tile 17.21 21.43 20.54 24.98 21.75 31.13 18.42 14.36 9.23 12.77 50th % -tile 14.63 18.95 18.45 22.56 19.33 27.64 15.29 11.69 4.93 8.93 75th % -tile 13.04 17.12 16.01 20.66 17.73 25.37 13.24 9.67 2.70 6.61 95th % -tile 10.99 14.06 12.56 17.46 14.95 22.93 11.18 6.59 -0.70 2.54 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 November 7, 2006 to March 31, 2007 13 Qtr YTD 1 2006 2005 2004 2003 2002 L 2001 2000 1999 Return 4.18 4.18 % -tile 35 35 Pb[Ij< Return 4.15 4.15 % -tile 36 36 ... . .......... . 5th % -tile 6.96 6.96 35.29 38.92 32.32 65.72 1.26 2.71 2.11 117.71 25th % -tile 4.49 4.49 28.37 23.76 23.60 48.59 -8.48 -10.53 -8.63 67.62 50th % -tile 3.75 3.75 25.65 16.31 19.34 38.92 -14.41 -18.53 -15.84 47.72 75th % -tile 2.74 2.74 22.79 13.13 16.57 33.20 -18.10 -23.29 -24.08 29.01 95th % -tile 1.58 1.58 18.65 9.40 12.66 27.55 -23.32 -29.32 -34.43 17.12 Returns are in percent. "% -tile" is the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is November 7, 2006 to March 31, 2007 13 Palm Beach Gardens General Employees' General Employees Pension Plan 25.00% Up Market Returns _. - -- 20.00% - - - - - - - - - - - - - - - - ---------- --- --- 15.00% -- ---- - - - - -- -- - -- - 10.00% - -- - -- - - - 5.00% - -- - - -- - 000% 5.00% 10.00% - - - - -- -- - -- - 15.00% 3 Yr 5 Yr 10 Yr Incep Fund ( %) 11.95 14.18 17.41 16.73 Policy ( %) 11.24 15.49 18.89 18.65 Difference ( %) 0.71 -1.31 -1.48 -1.92 Ratio 106.32 91.54 92.17 89.71 # Up Qtrs 9.00 14.00 28.00 38.00 Down Market Returns 0.00% 5.00% 10.00% - - - - -- -- - -- - 15.00% 3 Yr 5 Yr 10 Yr Incept Fund ( %) -2.49 -11.26 -12.27 -12.27 Policy ( %) -2.66 -12.35 -13.94 -13.94 Difference ( %) 0.17 1.09 1.67 1.67 Ratio 93.61 91.17 88.02 88.02 # Down Qtrs 3.00 6.00 12.00 12.00 Fund ( %) 0 Policy ( %) I Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 14 $Z v a $, I ` u e $1 $1 Palm Beach Gardens General Employees' General Employees Pension Plan Objective Comparison M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 J06 S06 D06 MOi Quarter Ending ❑ Fund } Policy Q Nominal 8% CPI + 4% Inception date is September 30, 1994 All dollar values are shown in thousands. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 15 i 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 + Manager Contribution = Fund Attribution of Manager Contribution between Asset Allocation and Security Selection Policy ... :: .... ... .... .. ............................... :::::::IVlaiagec:Caititiik4iori : ............................... ............................... ............................... ............................... Fund Current Quarter 1.13 ... .... ... ... ............................... ... ............................... ............................... ............................... ............................... 3:36 4.49 Year to Date 1.13 ::`: ` : ":: ? ` ` ::::::3;36:: 4.49 3 Years 7.34 F 7.92 5 Years 6.32 :: :4fi 5.86 10 Years 7.91 ; : =033 : 7.58 Incept 9.85 .: .. ':. .:::: `:`:`.':;0:86 8.99 Policy + Manager Contribution = Fund Attribution of Manager Contribution between Asset Allocation and Security Selection Asset Allocation + Security Selection = Manager Contribution Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 17 Asset Allocation Security Selection Manager Carthi�utidri: Current Quarter -0.68 4.04 136:. Year to Date -0.68 4.04 3.36: 3 Years -3.12 3.70 5 Years -2.93 2.47 10 Years -3.54 3.21 0:33 Incept -4.37 3.51:8fi Asset Allocation + Security Selection = Manager Contribution Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 17 10.00% e c 5.00% e n t E f 0.00% e c t -5.00% 10.00% e c 5.00% e n t E f 0.00% f e C t -5.00% Palm Beach Gardens General Employees' General Employees Pension Plan Asset Allocation Effect JVO uvO 'viv" Jv'f .) U4 uu4 MM JU5 SU5 D05 M06 J06 S06 D06 M07 Quarter Ending Security Selection Effect - -- .- Jvo vuo rv1V,4 JV4 aU4 uu4 MUb JU5 505 D05 M06 J06 S06 D06 M07 Quarter Ending Quarterly Effect Cumulative Effect Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 18 80 70 60 50 40 30 20 10 0 Palm Beach Gardens General Employees' General Employees Pension Plan Asset Allocation vs Targets 80.00 ° / 70.00 % - - - - - -- -- - - - -- ------------------------------------ - - - - -- - - - - -- - - - - -- - -- 60.00°/ w A - 50.00 % 40.00% 30.00 % 20.00 % 10.00% 0.00% J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 J06 S06 D06 M07 Quarter Ending Equity -+- Target 80.00% 70.00% - - - - 60.00% - - -- -------- - - - --- ---- - - -- -- - - - - - -- - ---- - - - - -- 50. 00% - - -- - -- - - -- - - ----------------------------------- 40.00% 30.00% 20.00% 10.00% 0.00%1 L I J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 J06 S06 D06 M07 Quarter Ending 0 Fixed Income Target Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 19 Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 20 5.00% 4.00% 3.00% R 2.00% e t 1.00% u n 0.00% -1.00% -2.00% -3.00% V $ a I u $ e Palm Beach Gardens General Employees' General Employees Pension Plan Manager Contribution J02 S02 D02 M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 J06 S06 D06 M07 Quarter Ending Quarterly - Cumulative Growth of $100 Fund vs Policy IVIVL JVL JVL VVL IVIUJ JVJ JUJ uVJ IVIV'f JV'f JV`f uV•f IVILIU JVJ JVJ uU:) IVIVV JVu JUV uVU MU) Quarter Ending ❑ Fund ❑ Policy Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 21 Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis ($) Period Ending Fund Policy Diff Nominal 8% Diff CPI + 4% Diff 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 Mar 2000 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 2,5341 2,852 -3171 2,358 176 2,050 484 Sep 2003 2,533 2,861 -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 1/1/2007 International added to Policy 22 Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis ($) Period Ending Fund Policy Diff Nominal 8% Diff CPI + 4% Diff 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 Jun 2006 2,765 3,162 -396 2,581 184 2,159 606 Sep 2006 2,834 3,276 442 2,591 242 2,141 692 Dec 2006 2,906 3,386 -481 2,605 300 21116 790 Mar 2007 2,979 3,369 -390 2,599 380 2,116 863 All dollar values are shown in thousands. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 23 Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis ( %) Period Fund Policy Diff Nominal 8% Diff CPI + 4% Diff Ending Dec 1994 -1.67 0.16 -1.83 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 Dec 1995 5.46 5.49 -0.03 1.94 3.52 1.08 4.38 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 2.61 -0.39 1.94 0.28 1.69 0.53 Dec 1996 5.12 6.23 -1.11 1.94 3.18 1.49 3.63 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 5.95 2.71 1.94 6.72 1.49 7.17 Dec 1997 0.59 3.06 -2.47 1.94 -1.35 0.99 -0.40 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 1.29 -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 -4.78 -3.56 -1.22 1.94 -6.72 1.99 -6.77 Dec 1999 6.89 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 6.32 _ 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 0.94 1.94 -9.45 1.59 -9.10 Dec 2002 3.08 5.95 -2.87 1.94 1.14 0.98 2.10 Mar 2003 -1.47 -1.24 -0.23 1.94 -3.41 2.80 -4.27 Jun 2003 7.62 10.56 -2.94 1.94 5.68 0.69 6.93 Sep 2003 1.161 1.44 -0.28 1.94 -0.78 1.79 -0.63 Dec 2003 7.081 7.21 -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 1/1/2007 International added to Policy 24 Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis ( %) Period Fund Policy Diff Nominal 8% Diff CPI + 4% Diff Ending Mar 2004 2.67 2.25 0.42 1.94 0.73 2.59 0.08 Jun 2004 -0.24 -0.25 0.01 1.94 -2.18 2.19 -2.43 Sep 2004 -0.38 0.30 -0.68 1.94 -2.32 1.08 -1.46 Dec 2004 6.17 5.82 0.35 1.94 4.23 1.18 4.99 Mar 2005 -1.19 -1.54 0.35 1.94 -3.13 2.59 -3.78 Jun 2005 1.32 2.21 -0.89 1.94 -0.62 1.69 -0.37 Sep 2005 1.75 1.79 -0.04 1.94 -0.19 3.20 -1.45 Dec 2005 2.07 1.50 0.57 1.94 0.13 -0.01 2.08 Mar 2006 2.71 2.25 0.46 1.94 0.77 2.59 0.12 Jun 2006 -1.09 -0.89 -0.20 1.94 -3.03 2.59 -3.68 Sep 2006 3.95 4.92 -0.97 1.94 2.01 0.98 2.97 Dec 2006 3.84 4.49 -0.65 1.94 1.90 0.49 3.35 Mar 2007 4.49 1.13 3.36 1.94 2.55 2.69 1.80 Incept. 8.99 9.85 -0.86 8.00 0.99 6.56 2.43 Returns for periods exceeding one year are annualized. Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 25 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 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. 26 Palm Beach Gardens General Employees' General Employees Pension Plan Risk Measures 3 Yr Fund. Policy . :: Diff # of Negative Qtrs 4.00 3.00 1.00 # of Positive Qtrs 8.00 9.00 -1.00 Batting Average 50.00 50.00 0.00 Worst Qtr -1.19 -1.54 0.35 Best Qtr 6.17 5.82 0.35 Range 7.36 7.36 0.00 Worst 4 Qtrs 3.98 3.97 0.01 Standard Deviation 5.33 4.39 0.94 Beta 1.09 1.00 0.09 Annualized Alpha 0.24 0.00 0.24 R- Squared 0.81 1.00 -0.19 Sharpe Ratio 0.86 0.91 -0.05 Treynor Ratio 4.20 4.00 0.20 Tracking Error 2.33 0.00 2.33 Information Ratio 0.25 ..... .... ... _ .... 10W ::: ... ........ Ftm is ...... . .. Policy ... . ...... D.ff:: # of Negative Qtrs 14.00 12.00 2.00 # of Positive Qtrs 26.00 28.00 -2.00 Batting Average 45.00 55.00 -10.00 Worst Qtr -7.51 -8.45 0.94 Best Qtr 11.16 12.51 -1.35 Range 18.67 20.96 -2.29 Worst 4 Qtrs -11.63 -12.21 0.58 Standard Deviation 8.12 9.06 -0.94 Beta 0.82 1.00 -0.18 Annualized Alpha 0.42 0.00 0.42 R- Squared 0.84 1.00 -0.16 Sharpe Ratio 0.48 0.47 0.01 Treynor Ratio 4.77 4.24 0.53 Tracking Error 3.68 0.00 3.68 Information Ratio -0.09 .................. 5 .'r ::.. Fund... . PottCY.:: Diff. # of Negative Qtrs 7.00 6.00 1.00 # of Positive Qtrs 13.00 14.00 -1.00 Batting Average 45.00 55.00 -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 6.31 7.11 -0.80 Beta 0.81 1.00 -0.19 Annualized Alpha 0.25 0.00 0.25 R- Squared 0.85 1.00 -0.15 Sharpe Ratio 0.53 0.54 -0.01 Treynor Ratio 4.14 3.81 0.33 Tracking Error 2.80 0.00 2.80 Information Ratio -0.16 ......... ............................... lnnept Fond ......................... F?<>ftt;y : 4iff:: # of Negative Qtrs 15.00 12.00 3.00 # of Positive Qtrs 35.00 38.00 -3.00 Batting Average 40.00 60.00 -20.00 Worst Qtr -7.51 -8.45 0.94 Best Qtr 11.16 12.51 -1.35 Range 18.67 20.96 -2.29 Worst 4 Qtrs -11.63 -12.21 0.58 Standard Deviation 7.76 8.70 -0.94 Beta 0.80 1.00 -0.20 Annualized Alpha 0.28 0.00 0.28 R- Squared 0.82 1.00 -0.18 Sharpe Ratio 0.64 0.67 -0.03 Treynor Ratio 6.21 5.83 0.38 Tracking Error 3.71 0.00 3.71 Information Ratio -0.23 Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 27 13.00 12.00°/ 11.00°/ A 10.00% n n u a 1 9.00% z e d 8.00% R e t u r 7.00% n 6.00% 5.00% 4.00 ° /6 Palm Beach Gardens General Employees' General Employees Pension Plan Return vs Risk through March 31, 2007 Risk (Annualized Std Dev) Policy Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 28 S &P 500 15.00% 20.00% Palm Beach Gardens General Employees' General Employees Pension Plan Return vs Risk through March 31, 2007 3 Years 12.00% 11.00% 10.00% 9.00% R 8.00% e t 7.00% � 6.00% n 5.00% s 4.00% 3.00% 2 00°/ 500 ° 1.00% 3.00% 5.00% 7.00% 0.00% 2.00% 4.00% 6.00% 8.00% Risk (Annualized Std Dev) 10.00% 9.00% 8.00% R 7.00% e t u 6.00% r n s 5.00% 4.00% 10 Years 3.00% L i -_. 1 1 5.00% 15.00% 25.00% 0.00% 10.00% 20.00% Risk (Annualized Std Dev) 7.00% 6.50% 6.00% 5.50% R e 5.00% t u 4.50% s 4.00% 3.50% 3.00% 2.50% 13.00% 12.00% 11.00% 10.00% R e 9.00% t u 8.00% r n s 7.00% 6.00% 5.00% 4.00 ° /8 5 Years X, S &P 500 Fund LB Gov /Corp Mo TE90% 10.00% 15.00% 20.00% I Risk (Annualized Std Dev) Inception S &P 500 Fund LB Gov /Corp Mo TBiM% 10.00% 15.00% 20.000/ I Risk (Annualized Std Dev) Policy Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy 29 Palm Beach Gardens General Employees' General Employees Pension Plan Policy: 09/30/1994- 12/31/2005 60.00 S &P 500 40.00 Lehman Gov /Credit Bond 01 /01 /2006-12/31/2006 60.00 S &P 500 40.00 Lehman Aggregate Bond 01/01/2007-03/31/2007 60.00 S &P 500 35.00 Lehman Aggregate Bond 5.00 MSCI EAFE First Objective: 09/30/1994 - 03/31/2007 Annual Return of 8.00% Second Objective: 09/30/1994- 03/31/2007 100.00 US Consumer Price Index + 4.00 annual adder Universe Data: 60% PLCC, 35% HQB & 5% International 09/30/1994 - 12/31/2006 40.00 High Quality Bond 60.00 Pure Large Cap Core 01/01/2007- 03/31/2007 35.00 High Quality Bond 60.00 Pure Large Cap Core 5.00 International Equity ii Bogdahn Consulting, LLC. CONTRIBUTIONS/WITHDRAWALS Palm Beach Garden General Employees' Combined Account From 01 -01 -07 To 03 -31 -07 Tran Trade Settle Code Date Date Security Amount CONTRIBUTIONS li 01 -12 -07 01 -12 -07 Cash 613.06 EE li 01 -25 -07 01 -25 -07 Cash 621.40 EE li 02 -01 -07 02 -01 -07 Cash 8,830.45 Transfer in to cover benefit payments h 02 -01 -07 02 -01 -07 Cash 5,886.96 Transfer in to cover benefit payments li 02 -09 -07 02 -09 -07 Cash 603.97 EE li 02 -23 -07 02 -23 -07 Cash 627.16 EE li 03 -01 -07 03 -01 -07 Cash 10,320.74 li 03 -01 -07 03 -01 -07 Cash 6,880.49 Transfers in to cover benefit payments li 03 -09 -07 03 -09 -07 Cash 647.77 EE li 03 -22 -07 03 -22 -07 Cash 611.85 ER 35,643.85 WITHDRAWALS to 01 -02 -07 01 -02 -07 Cash 1,808.84 Federal w/h on benefit payments to 01 -08 -07 01 -08 -07 Cash 6.38 Salem Trust Fees to 01 -08 -07 01 -08-07 Cash 28.73 Salem Trust Fee to 01 -0S -07 01 -08 -07 Cash 472.05 Salem Trust Fee to 01 -08 -07 01 -08 -07 Cash 242.85 Salem Trust Fee to 01 -11 -07 01 -11-07 Cash 2,000.00 Bogdahn Consulting 10/06 -12/06 to 01 -24 -07 01 -24 -07 Cash 1,570.30 Christiansen & Dehner to 01 -25 -07 01 -25-07 Cash 16,645.20 Benefit payments to 02 -01 -07 02 -01 -07 Cash 16,645.20 Benefit payments to 02 -01 -07 02 -01 -07 Cash 1,808.84 W/H tax on benefit payments to 02 -01 -07 02 -01 -07 Cash 8,830.45 Benefit payments to 02 -01 -07 02 -01 -07 Cash 5,886.96 Transfer to R &D account to 03 -01 -07 03 -01 -07 Cash 16,645.20 Benefit payments to 03 -01 -07 03 -01 -07 Cash 1,808.84 W/H tax on benefit payments to 03 -01 -07 03 -01 -07 Cash 10,320.74 Transfer in to R&D account to rebalance Broker Quantity Code Commission Bogdahn Consulting, LLC. CONTRIBUTIONS/WITHDRAWALS Palm Beach Garden General Employees' Combined Account From 01 -01 -07 To 03 -31 -07 Tran Trade Settle Code Date Date Security Amount to 03 -01 -07 03 -01 -07 Cash 6,880.49 Transfer to R &D account to rebalance to 03 -14 -07 03 -14 -07 Cash 40.75 Fee charged on issuance of new Ryanair ADR certificate 91,641,82 EXPENSE ACCOUNTS AFTER FEE PERFORMANCE EXPENSE ACCOUNTS dp 01 -09 -07 01 -09 -07 Administration Fee 838.00 Sawgrass Mgmt. fee for p/e 12/31/06 dp 01 -17 -07 01 -17 -07 Administration Fee 3,192.52 Rockwood mgmt. fees 09/06 -12/06 4,030.52 PORTFOLIO NET TOTAL - 60,028A9 EXPENSE ACCOUNTS PAID BY CLIENT 0.00 AFTER FEE PERFORMANCE EXPENSE ACCOUNTS PAID BY CLIENT GRAND TOTAL - 60,028A9 2 Broker Quantity Code Commission Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL Palm Beach Garden General Employees' Combined Account March 31, 2007 (Excluding Reinvested Divs.) Unit Total Quantity Security Cost Cost Price DOMESTIC EQDITIE Common Stock Large Cap 1,400.000 900.000 520.000 1,478.000 624.000 1,134.000 1,024.000 1,206.000 1,015.000 1,345.000 900.000 1,265.000 510.000 1,155.000 1,075.000 675.000 1,720.000 1,237.000 Mid Cap ,S AT &T Inc. / formally AT &T Corp Anheuser -Busch Cos. Inc. BOEING CO COM Cisco Sys, Inc COM Colgate Palmolive ECHOSTAR COMMNTNS NEW CL A Federated Dept. Stores General Motors Corp.Com Heinz H J Company Hewlett Packard Co J.P. Morgan & Co. Kraft Foods Lockheed Martin Corp. Loews Corp. PG & E Corp. Praxair Inc. Safeway Inc. COM Tyco International Ltd COM 1,034.000 Alliant Energy Corp 1,040.000 Apartment Inventory & 7,879.06 Management Co - Reit 600.000 BRE Properties 920.000 FISERV INC COM 970.000 Henry Schein Inc. 1,000.000 INTERNATIONAL 88.91 GAME TEC COM 1,170.000 McCormick & Co Inc 515.000 NYSE Group Inc. 1,192.000 P P & L RES INC COM 1,150.000 Price T Rowe Assoc Inc 64.86 Com 284.000 Sears Holdings Corp 560.000 Simon PPTY Group Inc. 655.000 Stericycle Inc 1,300.000 Wendys Inti, Inc COM Small Cap 815.000 Precision Castparts Corp. Market Pct. Value Gain/Loss Assets 33.80 47,322.94 39.43 55,202.00 7,879.06 1.9 46.99 42,295.05 50.46 45,414.00 3,118.95 1.5 64.53 33,556.42 88.91 46,233.20 12,676.78 1.6 28.51 42,133.49 25.53 37,733.34 - 4,400.15 1.3 64.86 40,471.83 66.79 41,676.96 1,205.13 1.4 36.37 41,246.19 43.43 49,249.62 8,003.43 1.7 41.34 42,328.78 45.05 46,131.20 3,802.42 1.5 33.60 40,517.74 30.64 36,951.84 - 3,565.90 1.2 42.21 42,842.34 47.12 47,826.80 4,984.46 1.6 32.33 43,477.39 40.14 53,988.30 10,510.91 1.8 46.98 42,277.77 48.38 43,542.00 1,264.23 1.5 32.61 41,248.74 31.66 40,049.90 - 1,198.84 1.3 60.12 30,662.63 97.02 49,480.20 18,817.57 1.7 29.94 34,579.59 45.43 52,471.65 17,892.06 1.8 35.89 38,583.79 48.27 51,890.25 13,306.46 1.7 62.52 42,200.80 62.96 42,498.00 297.20 1.4 2129 38,341.72 36.64 63,020.80 24,679.08 2.1 31.91 39,472.30 31.55 39,027.35 -444.95 1.3 723,559.50 38.94 40,259.72 36.91 38,390.98 57.15 34,289.46 43.76 40,259.57 45.52 44,158.09 42.28 42,277.80 35.29 41,292.11 66.09 34,036.66 33.44 39,857.62 33.76 38,819.00 151.84 43,122.84 68.08 38,124.80 63.44 41,554.44 34.02 44,229.51 54,268.50 560,672.60 842,387.41 118,827.91 44.82 46,343.88 6,084.16 57.69 59,997.60 21,606.62 63.15 37,890.00 3,600.54 53.06 48,815.20 8,555.63 55.18 53,524.60 9,366.51 40.38 40,380.00 - 1,897.80 38.52 45,068.40 3,776.29 93.75 48,281.25 14,244.59 40.90 48,752.80 8,895.18 47.19 54,268.50 15,449.50 180.16 51,165.44 8,042.60 111.25 62,300.00 24,175.20 81.50 53,382.50 11,828.06 31.30 40,690.00 - 3,539.51 46.02 37,510.29 104.05 U 690,860.17 130,187.57 28.3 1.6 2.0 1.3 1.6 1.8 1.4 1.5 1.6 1.6 1.8 1.7 2.1 1.8 1.4 23.2 84,800.75 47,290.46 2.8 E_ I-M Palm Beach Gardens General Employees' Pension Plan First Quarter 2007 ROCKW OOD CAPITAL ADVISORS 721 Emerson Road, Suite 565 St. Louis, Missouri 63141 • (888) 962 -8336 (toll -free) (314) 962 -1254 (fax) 1 1 II 11 The American ....... 4& R0CKW00D CAPITAL ADVISORS How CAN I HELPYOOOSE? Palm Beach Gardens General Empl First Quarter 2007 Total Fund Portfolio Summary Pension Plan Equities 100% Change in Market Value Net Dividends /Interest Contributions Disbursements Net Realized & Unrealized (G /L) Portfolio Summary Short-Term Funds 0% $6,456 $0 ($22,856) $108,664 Total Fund Performance Palm Beach Gardens GE 6.1% Policy (S &P 500) 0.6% Diff +/_ +5.5% AL ROCKWOOD CAPITAL ADVISORS 2 Palm Beach Gardens General Em Equity - First Quarter 2007 First Quarter Cutting Through "Choppy" Waters Pension Plan The first quarter of 2007 was a choppy one for most equity investors as stocks started out strong, dipped, and eventually landed in positive territory. The S&P 500 Index, appreciated a slight 0.6 %, while the average diversified equity fund increased 2.1%. Bond investors were more or less in line with equity investors as the Lehman Brothers Aggregate Bond Index rose 1.5% The equity markets continue to be characterized by uneven leadership. As such, it has been difficult to identify obvious themes in the market, creating a true "stock pickers" environment. Your equity portfolio has benefited from an unusual combination of economically sensitive sectors (Industrials and Consumer Discretionary) and traditionally more defensive areas (Consumer Staples, Utilities, and Telecom). Our flexible investment approach should allow us to continue to achieve long -term superior returns. We will continue to monitor your portfolio and make adjustments as opportunities make themselves available. In fact, the price weakness in the equity market that occurred during the quarter has provided a growing list of buy opportunities. Contravisory Research & Management Corp. is a registered investment adviser and equity sub - adviser to Rockwood Capital Advisors, LLC. 21% 18% 15% 12% 9% 6% 3% 0% Performance 1 s Qtr. One Year 2007 0 Palm Beach Gardens GE 17.7% Since Inception (10/25/05) N S&P 500 R 0 C K W 0 0 D CAPITAL ADVISORS 3 Equity Portfolio ' First Quarter 2007 Characteristics Style , Number of Stocks Beta 1 • Yield 1.5% P/E 1 Top Ten Holdings Sector Allocation 1 Five Best Impact Five Worst Impact I 1. Precision Castparts +33.0% 1. International Game - 12.3% , 2. Volvo +22.2% 2. Kraft Foods Inc. - 10.6% 3. Bayer AG +19.9% 3. Wendy's Intl. Inc. -5.2% ' 4. Alliant Corp. +19.7% 4. General Motors Corp. -4.0% 5. Federated Dept Store +18.5% 5. NYSE -3.6% ' 1 R 0 C K W 0 0 D CAPITAL ADVISORS _1 Producer Technology , Durables 5% 5% Utilities Materials 0010 7% ADR's ' Health Care 13% 8% Not Classified 2% ' Auto & Transport Finance 2% 21% Cons. Disc. Cons. Staples '12% 15% ' Five Best Impact Five Worst Impact I 1. Precision Castparts +33.0% 1. International Game - 12.3% , 2. Volvo +22.2% 2. Kraft Foods Inc. - 10.6% 3. Bayer AG +19.9% 3. Wendy's Intl. Inc. -5.2% ' 4. Alliant Corp. +19.7% 4. General Motors Corp. -4.0% 5. Federated Dept Store +18.5% 5. NYSE -3.6% ' 1 R 0 C K W 0 0 D CAPITAL ADVISORS _1 Equity Transactions First Quarter 2007 Sold Jan El Paso Corp. Jan HCC Insurance Feb Brown- Forman Feb Texas Instruments Feb J2 Global Communications Bought Jan AT &T Inc. Jan Ahold (Kon) Feb Cisco Systems Feb General Motors Feb Tyco International R 0 C K W 0 0 D CAPITAL A D V I S 0 R S Proxy Voting Record Hewlett — Packard Co. HPQ Ballot ISSUe MgMt Vote Rec Cast Voted Elect Directors For For 1,345 3/14/07 Ratify Auditors For For 1,345 3/14/07 Require Director Nominee Qualifications For For 1,345 3/14/07 Separate Chairman & CEO Positions For For 1,345 3/14/07 Submit Shareholders Rights Plan For For 1,345 3/14/07 Performance Based Equity Awards For For 1,345 3/14/07 I International Game Technoloav IGT I R 0 C K W 0 0 D CAPITAL ADVISORS 6 Equity Holdings - March 31, 2007 Exchange Avg Total Market Perct of Cur Annual S&P • Ticker Company -- Cash 2,479 1.00 2,479 1.00 2,479 0.1 4.8 119 NA NA AHO Ahold(Kon) Nv 4,500 10.34 46,514 11.74 52,830 2.8 0.0 NR - LNT Alliant Corp 1,034 38.94 40,260 44.82 46,344 2.4 2.8 1,189 B 0.74 BUD Anheuser Busch Cos 900 46.99 42,295 50.46 45,414 2.4 2.3 1,062 A+ 0.51 AIV Apartment Invt & Mgm 1,040 36.91 38,391 57.69 59,998 3.1 4.2 3,120 B- 0.72 T At &T Inc 1,400 33.80 47,323 39.43 55,202 2.9 3.6 1,988 B+ 0.78 BAY Bayer AG 800 52.86 42,285 63.97 51,176 2.7 1.6 446 NA - BA Boeing Co 520 64.47 33,525 88.91 46,233 2.4 1.6 728 B+ 0.87 BRE Bre Properties Inc 600 57.15 34,289 63.15 37,890 2.0 3.4 1,230 B 0.94 CSCO Cisco Sys Inc 1,478 28.51 42,133 25.53 37,733 2.0 0.0 B+ CL Colgate Palmolive Co 624 64.86 40,472 66.79 41,677 2.2 2.2 799 A+ 0.98 DISH EchostarCommunicati 1,134 36.37 41,246 43.43 49,250 2.6 0.0 - B• 0.31 FD Federated Dept Store 1,024 41.34 42,329 45.05 46,131 2.4 1.1 512 B 0.30 FISV Fisery Inc 920 43.76 40,260 53.06 48,815 2.5 0.0 B+ 0.35 GM General Mfrs Corp 1,206 33.60 40,518 30.64 36,952 1.9 3.3 1,206 B- 0.99 HNZ Heinz H J Co 1,015 42.21 42,842 47.12 47,827 2.5 3.0 1,218 B 0.88 HPQ Hewlett Packard Co 1,345 32.33 43,477 40.14 53,988 2.8 0.8 430 B+ 0.54 IGT International Game 1,000 42.28 42,278 40.38 40,380 2.1 1.3 520 B+ 0.41 JPM J P Morgan Chase & C 900 46.98 42,278 48.38 43,542 2.3 2.8 1,224 B 0.89 KFT Kraft Foods Inc 1,265 32.61 41,249 31.66 40,050 2.1 3.2 1,265 NR 0.66 LMT Lockheed Martin Corp 510 60.12 30,663 97.02 49,480 2.6 1.4 714 B 0.31 LTR Loews Corp 1,155 29.94 34,580 45.43 52,472 2.7 0.6 289 B 0.16 MKC Mccormick & Cc Inc 1,170 35.29 41,292 38.52 45,068 2.4 2.1 749 A+ 0.72 NYX Nyse Euronext 515 66.09 34,037 93.75 48,281 2.5 0.0 NR PCG Pg &E Corp 1,075 35.89 38,584 48.27 51,890 23 3.0 1,419 B 0.98 PPL Ppl Corp 1,192 33.44 39,858 40.90 48,753 2.5 3.0 1,311 B+ 0.51 PX Praxair Inc 675 62.52 42,201 62.96 42,498 2.2 1.9 675 A 0.56 PCP Precision Castparts 815 46.02 37,510 104.05 84,801 4.4 0.1 98 B 0.62 RYAA.Y Ryanair Hldgs Plc 1,630 27.61 45,007 44.79 73,008 3.8 0.0 - NR - SWY Safeway Inc 1,720 22.29 38,342 36.64 63,021 3.3 0.6 396 B 0.85 HSIC Schein Henry Inc 970 45.52 44,158 55.18 53,525 2.8 0.0 B+ 0.89 SHLD Sears Hldgs Corp 284 151.84 43,123 180.16 51,165 2.7 0.0 NR 0.16 SPG Simon Ppty Group Inc 560 68.08 38,125 111.25 62,300 3.3 3.0 1,568 B+ 0.11 SRCL Stericycle Inc 655 63.44 41,554 81.50 53,383 2.8 0.0 B+ 0.29 TROW T.Rowe Price Group 1 1,150 33.76 38,819 47.19 54,269 2.8 1.4 782 A 0.43 TYC Tyco Intl Ltd New 1,237 31.91 39,472 31.55 39,027 2.0 1.3 495 B+ WOOF Vca Antech Inc 1,445 28.86 41,707 36.31 52,468 2.7 0.0 - NR 0.65 VOLV Volvo Aktiebolaget 765 40.65 31,097 84.07 64,314 3.4 3.6 1,411 NR - WEN Wends Intl Inc 1 1,300 1 34.02 1 44,230 1 31.30 1 40,690 1 2.1 1 1.1 1 442 B+ 1 0.07 Portfolio Total 44,007 S1.530.800 S1.914.323 100.0 1.4 S27,404 R 0 C K W 0 0 D CAPITAL ADVISORS Palm Beach Gardens General Empl First Quarter 2007 Pension Plan International Portfolio Portfolio Summary Change this Quarter: $4,602 Change in Market Value Net Dividends /Interest Contributions Disbursements Net Realized & Unrealized (G /L) Portfolio Allocation MV Emerging Cash M is 2% EPP- Pacific ex- Japan 20% ILF -Lat r 10% EWJ -Japan 10% EFA -EAFE 38% $22 $0 ($29) $4,609 International Fund Performance R 0 C K W 0 0 D CAPITAL A D V I S 0 R S --H,