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HomeMy WebLinkAboutAgenda General Pension 081307City 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 August 13, 2007 at 2:OOPM in Council Chambers. Old Business: Approval of 5/14/07 minutes New Business: Adjournment Report from Rockwood Capital Advisors Report from Bogdahn Consulting Report from Scott Christiansen Approval of Sam Martin's Retirement Approval of Doug West'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. .. City of Palm Beach Gardens 10500 N. Military Trail Palm Beach Gardens, FL 33410 GENERAL EMPLOYEES PENSION FUND NOTICE OF MEETING AND AGENDA Please take notice that the Board of Trustees of the City of Palm Beach Gardens will conduct a meeting of the board at the above location on August 13, 2007 at 2 :00PM in Council Chambers. Old Business: New Business: Adjournment Approval of 5/14/07 minutes - Report from Rockwood Capital Advisors - Report from Bogdahn Consulting Report from Scott Christiansen Approval of Sam Martin's Retirement Approval of Doug West's Retirement ?~Fu;x~~~ ./ 3-0 thr-ts~h7~/J~i~~ #JfP/Ct:-. DISABILITY INFORMATION ~ tY~-t~ 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, ifhearing 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. • TO: CITY OF PALM BEACH GARDENS GENER.<\L EMPLOYEES' PENSION PLA.l\l (DB) AUTHORIZATION FOR PAYMENT FROM FUND SUBJECT: Authorization from Board of Trustees for Payment from Fund So..!"(\ C!"br-l:i a Name ofPayee: Social Security Number: Address for Payment Purposes: Amount ofPayment: 3101 ./!!) · ______ _ A Retirement benefit, payable monthly for life, first payment to be-made Ju\~ I st -, 20.o.:::z_ and subsequent payments the first day of each month thereaft ~ (Upon death of the payee, please notifY the -Board of Trustees for further instruction concernitlg s-urvivor benefits, if any.) __ Disability benefit, payabl e until tenninated by further written notice from Board. (Upon death of the payee, please notify the Board of Trustees for further instruction c oncerning survivor benefits, if any.) __ Death Benefit, payable to Beneficiary of Member, first payment to be made -~------.--.-------:--;--;---:-----' 20 __ and subsequent payments on the first d ay of each month, with the last payment on , 20 __ . (Upon the death of the payee, please notify the Board for further instructions.) Refund of Member Contributions, including ____ pretax and ______ after tax . The foregoing authorization and direction for payment has been made pursuant ~o directions and authority of the Board ofTrustees. _ - Date of Issuance: (I copy for Disbursing Agent, 1 copy ~or Board) PF-7 311/02 " TO: ClTY OF PALM BEACH GARDENS GENERAL EMPLOYEES' PENSION PLAN (DB) AUTHORIZATION FOR PAYMENT FROM FUND SUBJECT : Authorization from Board of Trustees for Payment from Fund Name of Payee: Social Security Number: Address for Payment Purposes: A . . . . I Amount of Payment: ..,.1"7~=ii-T11..;o.·· !9.1;10.--------'-"----- ___6,_ R e tirement benefit, payable monthly for life, first payment to be m ade JL)nf._ 1st . , 2001 and subsequent payments the first day of each month thereafter.J (Upon death of the payee, please notify the Board of Trustees for further instruction concerning survivor benefits, if any.) __ Disability benefit, payable until terminated by further written notice from Board. (Upon death of the payee, please notify the Board of Trustees for further instruction concerning survivor benefits, if any.) __ Death Benefit, payahl.e to Beneficiary of Member, first payment to be made ---:----:-:---..,....-----.-----' 20 __ and subsequent payments on the first day of each month, with the last payment on , 20 __ . (Upon the death of t he payee, please notify the Board for further instructions.) Refund of Member Contributions, including ____ pretax and ______ after tax . The foregoing authorization and direction for payment has been made pursuant to directions and authority ofthe Board of Trustees. Date of Issuance : ( 1 c opy for Disbursing Agent, 1 copy for Board) PF-7 3/1/02 I · . I I I I I I I I I I I I I I I I I I Palm Beach Gardens General Employees' Pension Plan Second Quatter 2007 Review ROCKWOOD August 13, 2007 Strategy Review Presented by: D. Andrew Holtgrieve Managing Partner andy@rockwoodcapital.com CAPITAL ADVISORS 721 Emerson Road, Suite 565 • St. Louis, Missouri 63141 • (888) 962-8336 (toll-free) • (314) 962-1254 (fax) 1 YEE-HAA! Along for the Ride I I I I I I I I I I I I I I I I I 1 0 C I W 0 0 D. C A PITA L A D V I S 0 1 S -------------- I .:2-00".QC.f.IO 1 ---------------------------------------------- Palm Beach Gardens General Employees' Pension Plan Second Quarter 2007 Equities Short-Term Funds Accrued Income Total Fund Portfolio Summary B . . Ending 01 f Est. egrnnrng 10 o . M k tV I Market p rtf I" Annual Current Yreld ar e a ue Value 0 0 10 Income $1,911,844 $2,479 $2,239 $1,908,084 $48,561 $5,535 97.5% 2.5% $26,990 $2,219 1.4% 4.6% TOTAL $1,916 ,561 $1,962,180 100% $29,210 1.5% Change this Quarter: $45.619 Change in Market Value Beginning Balance $1,916.561 Net Dividends/Interest Contributions Disbursements Net Realized & Unrealized (GIL) $11,893 $14,154 ($28,163) $47,735 Ending Balance S 1.962.180 Portfolio Summary Total Fund Performance Equities 97% Funds 3% llOCIWOOD CAPITAL ADVISOllS Palm Beach Gardens GE Policy (S&P 500) Diff +/- 2"d Qtr. 2007 3.0% 6.3% -3 .3% 2 ~I I II I I I I I I I I I I I I I I· I I I I I I I I I I I I I I I I I I ---------------------------------- Palm Beach Gardens General Employees' Pension Plan Equity -Second Quarter 2007 Better Than Expected Due to strong returns in April and May, the second quarter of 2007 was an enjoyable one for equity investors, as most indices performed better than expected. Only in June did we witness a sell-off in stocks. For the quarter, the S&P 500 Index gained 6.2% while in the foreign developed markets, the MSCI EAFE Index turned in similar performance gaining 6.7%. The nice start to the quarter was fueled by continued investor confidence and a pick-up in M&A activity (mergers & acquisitions), to the tune of $1.6 trillion in deals or nearly a 100% increase from a year ago. Despite the nice start, investors could not shake concerns over higher bond yields and higher oil prices, leading to increased market volatility as the quarter wore on making investors more cautious as we enter the latter-half of the year. From an attribution standpoint, gains were fairly evenly matched across all market capitalizations, with large-cap stocks slightly besting their mid and small-cap siblings. Most major equities sectors ended in positive territory. Some of the stronger sector performers included: Telecommunications, Materials, Industrials, Technology, and Energy. Conversely, the weaker sectors continued their relative negative trends. These included: Financials, Consumer Discretionary, and Healthcare. During the first six months, your portfolio has benefited by concentrating our investment selection within those industry groups identified as displaying the greatest relative strength (i.e. Aerospace/Defense, Integrated Telecom, Foreign ADRs and Utilities). We will continue our search for dominant themes in the market and make adjustments to your portfolio as needed. Contravisory Research & Management Corp. is a registered investment adviser and equity sub-adviser to Rockwood Cspital Advisors, LLC. Perfonnance 25% ~---------------------------------------------------------. 20% 15% 10% 5% 0% 2nd Qtr. 2007 20 .6% 20.6% YTD One Year • Palm Beach Gardens GE S&P500 lOCIWOOD CAPITAL ADVISOltS Since Inception (1 0/25/05) 3 ~-----------------------------------------------------------------------------------~ Equity Portfolio Second Quarter 2007 38 1.0 1.4% 19.8x ToQ Ten Holdings 1. BayerAG 3.1% 2. Hewlett Packard Co. 3.1% 3. T. Rowe Price Group I 3.1% 4. Loews Corp. 3.1% 5. Safeway Inc. 3.0% 6. AT&Tinc. 3.0% 7. Ryanalr Holdings Pic. 3.0% 8. Ahold(Kon) 2.9% 9. PPLCorp. 2.9% 10. Precision Castparts 2.8% Five Best lmQact 1. General Motors Corp. +24.4% 2. Volvo +22.5% 3.BayerAG +19.5% 4. Wendy's Inti. Inc. +17.8% 5. Precision Castparts +16.7% .... lOCIWOOD CAPITAL ADVISORS Style Box Val Cr Grw Large Cap -71.5% Mid Cap-28.5% 1---+----11---1 Small Cap-O% '---'----''----' Average Mari(et Cap $39.2 billion Median Mari(et Cap $19.7 billion Sector Allocation Producer Du ble Technology ra s 5% 5% Health Care 10% Not Classified 2% Auto& Transport 2% Cons. Staples 13% Cons. Disc. 13% Five Worst lmQact 1.NYSE -21.2% 2. Ryanalr Holdings Pic. -15.7% 3. Simon Property Group Inc. -15.7% 4. Alllant Corp. -12.7% 5. Macys Inc. -11.4% ~I I I I I ·I I I I I :1 I I 'I I I I I 4 'I I· I I I I I I I I I I I I I I I I I I • Equity Transactions Second Quarter 2007 April Kraft Foods, Inc. April International Game Tech. May Apartment lnvt. & Mgmt. June BRE Properties Inc. Sold Bought April Thermo Electron Corp. April Centurytel Inc. May International Flavors & Fragrances June DOW Chemical Co. lOCIWOOD CAPITAL ADVISOlS 5 ---------------------------------------------------------, • ~I Equity Holdings -June 30, 2007 :I :1 Perc! of Cur Exchange C m n N Sh r Avg Total Pnce Market Mkt Val Yield Annual S&P .Oity ISS Ticker 0 pa Y arne a es Cost Cost Value I'd 1,, 1 Income Ratmg CGQ Cash 48 ,561 1.00 48,561 1.00 48,561 2.5 4.6 2,234 NA NA I AHO Ahoki(Kon) Nv 4,500 10.34 46,517 12.52 56,340 2.9 0.0 NR NA LNT AHiantCorp 1,034 38.94 40,.260 38.85 40,171 2.1 3.3 1,189 B 0.76 BUD Anheuser Busch Cos 900 47.00 42,296 52.16 46,944 2.4 2.3 1,062 A+ 0.66 T At&T Inc 1,400 33.80 47,323 41.50 58,100 3.0 3.4 1,988 B+ 0.22 BAY BayerAG 800 52.86 42,285 75.30 60,240 3.1 1.4 754 NA NA I BA Boeing Co 520 64.47 33,525 96.16 50,003 2.6 1.5 728 B+ 0.93 CTL Cenllllytellnc 1,010 45.69 46,146 49.05 49,541 2.6 0.5 253 A 0.11 csco Cisco Sys Inc 1,478 28.51 42,133 27.85 41,162 2.1 0.0 B+ 0.43 CL Colgate Palmolive Co 624 64.86 40,472 64.85 40,466 2.1 22 799 A+ 0.98 ·I DOW Dow Chern Co 1,046 45.82 47,922 4422 46,254 ' 2.4 3.8 1,569 B 0.80 DISH Echostar Communicati 1,134 36.37 41,246 43.37 49,182 2.6 0.0 B-0.93 FISV FIServlnc 920 43.76 40,259 56.80 52,256 2.7 0.0 B+ 0.76 GM General M1rs Corp 1,206 33.60 40,518 37.80 45,587 2.4 2.7 1,206 B-0.98 I HNZ Heinz H J Co 1,015 4221 42,842 47.47 48,182 2.5 32 1,218 B+ 0.81 HPO Hewlett Packard Co 1,345 32.33 43,477 44.62 60,014 3.1 0.7 430 B+ 0.46 IFF lntemational Flav&F 944 5224 49,314 52.14 49,220 2.6 1.6 793 B+ 0.32 JPM J P Morgan Chase & C 900 46.98 42,278 48.45 43,605 2.3 3.1 1,224 B 0.90 LMT Lockheed Martin Corp 510 60.12 30,663 94.13 48,006 2.5 1.5 714 B 0.18 I LTR LoewsCorp 1,155 29.94 34,580 50.98 58,882 3.1 0.5 289 B 0.94 M Macys Inc. 1,024 41.34 42,329 39.78 40,735 2.1 1.3 522 B 0.41 MKC Mccormick & Co Inc 1,170 3529 41,292 38.18 44,671 2.3 2.1 749 A+ 0.64 NYX Nyse Euronext 515 101.00 52,015 73.62 37,914 2.0 1.4 NR NA I PCG Pg&ECorp 1,075 35.89 38,584 45.30 48,698 2.5 32 1,419 B 0.94 PPL PpiCorp 1,192 33.44 39,858 46.79 55,774 2.9 2.6 1,311 B+ 0.34 PX Praxairlnc 675 62.52 42,201 71.99 48,593 2.5 1.7 675 A 0.77 PCP Precision Castparls 449 46.03 20,665 121.36 54,491 2.8 0.1 54 B 0.58 RYAA.Y Ryanair Hldgs Pic 1,520 27.61 41,970 37.75 57,380 3.0 0.0 NR NA I SWY Safewaylnc 1,720 2229 38,342 34.03 58,532 3.0 0.8 396 B 0.92 HSIC Schein Henly Inc 970 45.52 44,158 53.43 51,827 2.7 0.0 B+ 0.81 SHLD Sears Hldgs Corp 284 151.84 43,123 169.50 48,138 2.5 0.0 NR 0.12 SPG Sinon Ppty Group Inc 560 68.08 38,125 93.04 52,102 2.7 3.6 1,702 B+ 027 I SRCL Stericycle Inc 655 63.44 41,555 44.46 29,121 1.5 0.0 B+ 0.45 TROW T.Rowe Price Group I 1,150 33.76 38,819 51.89 59,674 3.1 1.3 782 A 0.82 TMO Thenno Fisher Scientifi 974 48.42 47,164 51.72 50,375 2.6 0.0 B-0.37 TYC Tyco International L~ 1,237 31.91 39,473 33.79 41,798 22 12 495 B+ NA I WOOF Vca Antech Inc 1,445 28.86 41,707 37.69 54,462 2.8 0.0 NR 0.07 VOLV Volvo Aktiebolaget 2,652 8.13 21,561 19.89 52,748 2.7 3.1 NR NA WEN 1,300 34.02 36.75 47 2.5 1.4 0.11 I I I I I I lOCIW OOD CAPITAL AD VI SOlS 6 I I· I I I I I I I I I I I I I I I I I I Palm Beach Gardens General Employees' Pension Plan Second Quarter 2007 EPP-Pacific ex- Japan 20% International Portfolio Portfolio Summary Beginn ing End ing Market Market Value Va lue INTL Equities Short-Term Funds Accrued Income $112,869 $2,659 $317 $122,747 $2,662 $316 TOTAL $115 ,845 $125 ,725 Change this Quarter: $9 ,880 Change in Market Value Beginning Balance $115 ,845 Net Dividends/Interest Contributions Disbursements Net Realized & Unrealized (G/L) $32 $0 ($29) $9,877 Ending Balance $125 ,725 Portfolio Allocation International Fund Performance Cash 2% EWJ-Japan 9% EFA-EAFE 37% , 2 nd Qtr ' 2007 Palm Beach Gardens GE 8.9% Policy (EAFE) 6.7% Diff +/-+1 .9% lOCIWOOD CAPITAL ADVISORS 7 ~I International Equity Holdings -Second Quarter 2007 I I I I Cost . Market Perct of Cur Annual Company Name Shares Basis Pnce Value Mkt Val (0 o) Yield (%) Income Cash 2,662 2,662 1.00 2,662 2.1 4.8 128 iShares MSCI EAFE Index Fund 580 41,306 so.n 46,847 37.4 1.9 890 I iShares MSCI Pacific ex-Japan 172 20,812 146.50 25,198 20.1 3.6 895 iShares MSCI Emerging Mrld 195 20,824 131.65 25,672 20.5 1.2 305 Index I iShares MSCI Japan Index Fund no 10,448 14.51 11,173 8.9 0.7 76 iShares S&P Latin American 40 65 10,449 213.20 13,858 11.1 1.5 212 Portfolio Total 4,444 5106,500 5 125.409 100.0 2.0 52,506 I I I I I I I :1 :1 I I lOCIWOOD CAPITAL ADVISOIS 8 I I· I I I I I I I I I I I I I I I I I I • Economic Environment & Outlook Second Quarter 2007 A The Fed held rates steady in the second quarter of 2007; the federal funds rate target remains at 5.25%. While reported inflation has recently decelerated, the Fed, in the June FOMC statement, maintained that "a sustained moderation has yet to be convincingly demonstrated." In other words, Fed policy is on hold for the foreseeable future. A Employment growth has remained strong throughout 2007 , averaging 145,000 jobs per month. The unemployment rate has held at 4.5% for the past three months. The Fed often mentions their concern over "high levels of resource utilization." This is "Fed speak" for a tight labor market. So far, it's showing no signs of loosening. A The growth outlook has been mixed. Housing data continue to disappoint, but the labor market remains solid and manufacturing has picked up. Q1 GOP grew only 0.7% (annualized), but trade and inventories accounted for most of the weakness. Economists are predicting a strong rebound in 02 growth (median estimate is 3.2% annualized). A Core CPI has shown signs of decelerating recently, with the YOY rate declining from 2.7% in February to 2.2% in May. The Median CPI, a wide ly followed measure of core inflation, has likewise dropped from 3.6% to 3.1% over the same period. The Fed has noted this welcome development, but t hey caution that this level must be sustained before they would even consider lowering the funds rate. A The overhang from the meltdown of the sub-prime mortgage market last quarter continues to pressure credit spreads. We do not expect the subprime problem to create system-wide problems comparable to Long Term Capital Mangement. . However, the markets continue to digest a healthy re-pricing of system-wide risk. A The economy has clearly rebounded after hitting a soft patch early in the year. While the Fed is no doubt pleased with the recent readings on inflat ion, it's hard to imagine the Fed easing monetary policy with the unemployment rate at 4.5%. We look for the Fed to remain on hold through at least the end of 2007 . lOCIWOOD CAPITAL ADVISOlS 9 Proxy Voting Record Ahold Kon Nv (AHO) Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Proposal to adopt 2006 financial statements FOR FOR 4,500 5/03/07 Discharge of liability of the members of the corporate executive board FOR FOR 4,500 5/03/07 Discharge of liability of the members of the supervisory board FOR FOR 4,500 5/03/07 Proposal to appoint Mr. A.D. Boer as a member of the corporate executive FOR FOR 4,500 5/03/07 board, with effect from May 3, 2007 Ratify Auditors FOR FOR 4,500 5/03/07 Proposal to appoint Mr. T. De Swaan as a member of the supervisory board, FOR FOR 4,500 5/03/07 with effect from May 3, 2007 Proposal to amend articles of association FOR FOR 4,500 5/03/07 Authorize the corporate executive board to issue common shares or grant rights FOR FOR 4,500 5/03/07 Authorize the corporate executive board to restrict or exclude pre-emptive rights FOR FOR 4,500 5/03/07 Proposal to cancel78,383,010 cumulative preferred financing shares held by FOR FOR 4,500 5/03/07 I the company Proposal to cancel common shares in the share capital of the company FOR FOR 4,500 5/03/07 repurchased or to be repurchased by the company Authorize the corporate executive board to acquire such number of common FOR FOR 4,500 5103/07 shares in the company or depository receipts Proposal to cancel common shares in the share capital of the company, as FOR FOR 4,500 5103/07 referred to under item 14 Proposal to cancel common shares in the share capital of the company, as FOR FOR 4,500 5/03/07 referred to under item 16 Proposal to approve the sale of U.S. Foodservice FOR FOR 4,500 6/19/07 Proposal to, amongst others, increase the nominal valiJe of the common shares, as well as to authorize each member of the corporate executive FOR FOR 4,500 6/19/07 board to effectuate the proposed amendment of the articles of association. Proposal to, amongst others, reduce the issued capital by decreasing the nominal value of the common shares, as well as authorize each member of the FOR FOR 4,500 6/19/07 corporate executive board to effectuate the proposed amendment of the articles of association. Proposal to, amongst others, consolidate the common shares, as well as to authorize each member of the corporate executive board to effectuate the FOR FOR 4,500 6/19/07 proposed amendment of the articles of association Alliant Energy Corp. (LNT) Mgmt Vote SHS Ballot Issue R C V d Date cc ast otc Elect Directors Ratify Auditors lOCIWOOD CAPITAL ADVISORS FOR FOR FOR FOR 1,034 1,034 5/10/07 5/1 0/07 ~I I I I ~I I I I I I I I I I I I I I 10 I 1 Proxy Voting Record I I I I I I I I I I I I I I I I I Anheuser-Busch Companies , Inc. (BUD) Mgmt Vote SHS Ballot Issue R C V t d Date ec ast o e Elect Directors Ratify Auditors Approve Omnibus Stock Plan App rove Nonqualified Employee Stock Purchase Plan Apartment Investment & Management Co. (AIV) FOR FOR FOR FOR FOR FOR FOR FOR 900 900 900 900 4/25/07 4/25/07 4/25/07 4/25/07 Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Elect Directors Ratify Auditors Approve Omnibus Stock Plan Approve Nonqualified Employee Stock Purchase Plan . ; FOR FOR FOR FOR FOR FOR FOR FOR 1,040 1,040 1,040 1,040 4/25/07 4/25/07 4/25/07 4/25/07 Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Elect Directors FOR FOR 1,400 4/27/07 Ratify Auditors FOR FOR 1,400 4/27/07 Compensation Specific -Severance Payments to Executives FOR FOR 1,400 4/27/07 Report on Political Contributions FOR FOR 1,400 4/27/07 Amend Articles/Bylaws/Charter-Call Special Meetings FOR FOR 1,400 4/27/07 Pay for Superior Performance FOR FOR 1,400 4/27/07 Advisory Vote to Ratify Named Executive Officers' Compensation FOR FOR 1,400 4/27/07 Establish SERP Policy FOR FOR 1,400 4/27/07 Colgate-Palmolive Co. (CL) Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Elect Directors Ratify Auditors Amend Articles/Bylaws/Charter -Call Special Meetings Pay for Superior Performance Echostar Communications Corp. (DISH) FOR FOR FOR FOR FOR FOR FOR FOR 624 624 624 624 5/3/07 5/3/07 5/3/07 5/3/07 Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Elect Directors Ratify Auditors Other Business lOCIWOOD CAPITAL ADVISORS FOR FOR FOR FOR FOR FOR 1,134 1,134 1,134 5/8/07 5/8/07 5/8/07 11 Proxy Voting Record Baye r AG (BAY) Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Submission of approved financial statements & consolidated financial statements, management reports for Bayer AG & for Bayer Group, & the report FOR FOR 800 4/27/07 of the Supervisory Board for fiscal year 2006; resolution on distribution of profit Ratification of the actions of the members of the Supervisory Board & Board of FOR FOR 800 4/27/07 Management Elect Members to Supervisory Board FOR FOR 800 4/27/07 Authorization to buy back & sell company shares; exclusion of subscription rights FOR FOR 800 4/27/07 Approval of domination and profit and loss transfer agreement between the FOR FOR 800 4/27/07 company and Bayer Schering GMBH Revocation of the existing authorized capital II, creation of new authorized capital II with the option of excluding subscription rights and amendment to FOR FOR 800 4/27/07 section 4 (3) of the articles of incorporation (capital stock) Ratify Auditors FOR FOR 800 4/27/07 BRE Properties (BRE) Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Elect Directors Ratify Auditors Federated Department Stores , Inc. (M) FOR FOR FOR FOR 600 600 5/17/07 5/17/07 Mgmt Vote SHS Ballot Issue R C V t 1 Date ec ast o ec Elect Directors Ratify Auditors Change Company Name Amend Executive Incentive Bonus Plan Approve Deferred Compensation Plan Fiserv , Inc. (FISV) FOR FOR FOR FOR FOR FOR FOR FOR FOR FOR 1,024 1,024 1,024 1,024 1,024 5/18/07 5/18/07 5/18/07 5/18/07 5/18/07 Mgmt Vote SHS Ballot Issue R C V d Date ec ast ote Elect Members to Supervisory Board Ratify Auditors Approve Omnibus Stock Plan Company Specific-Provide Majorty Vote for the Election of Directors Kraft Foods Inc. (KFT) FOR FOR FOR FOR FOR FOR FOR FOR 920 920 920 920 5/23/07 5/23/07 5/23/07 5/23/07 Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Elect Directors Ratify Auditors lOCIWOOD CAPITAL ADVISORS FOR FOR FOR FOR 1,265 1,265 5/18/07 5/18/07 ~I I I I I I I I I I I I I I I I I I 12 I I· . 1 Proxy Voting Record I I I I I I I I I I I I I I I I I General Motors Corp. (GM) Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Elect Directors FOR FOR 1,206 6/5/07 Ratify Auditors FOR FOR 1,206 6/5/07 Approve Executive Incentive Bonus Plan FOR FOR 1,206 6/5/07 Approve Omnibus Stock Plan FOR FOR 1,206 6/5/07 Publish Political Contributions FOR FOR 1,206 6/5/07 Limit on Directorships of Board Members FOR FOR 1,206 6/5/07 Adopt Greenhouse Gas Emissions Goals FOR FOR 1,206 6/5/07 Provide for Cumulative Voting FOR FOR 1,206 6/5/07 Approve Tenns of Existing Poison Pill FOR FOR 1,206 6/5/07 Amend Artides/Bylaws/Charter-Call Special Meetings FOR FOR 1,206 6/5/07 Perfonnance -Based and/or Time-Based Equity Awards FOR FOR 1,206 6/5/07 Claw-back of Payments under Restatements FOR FOR 1,206 6/5/07 Optimize the Size of the Board FOR FOR 1,206 6/5/07 Adopt Simple Majority Vote FOR FOR 1,206 6/5/07 Henry Schein, Inc. (HSIC) Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Elect Directors Ratify Auditors Amend Omnibus Stock Plan Lockheed Martin Corp. (LMT) FOR FOR FOR FOR FOR FOR 970 970 970 5/15/07 5/15/07 5/15/07 Mgmt Vote SHS Ballot Issue R C V d Date ec ast ote Elect Directors Ratify Auditors Increase Disclosure of Executive Compensation Advisory Vote to Ratify Named Executive Officers' Compensations Loews Corp. (L TR) FOR FOR FOR FOR FOR FOR FOR FOR 510 510 510 510 4/26/07 4/26/07 4/26/07 4/26/07 Mgmt Vote SHS Ballot Issue R C V d Date ec ast ote Elect Directors FOR FOR 1,155 5/8/07 Ratify Auditors FOR FOR 1,155 5/8/07 Amend Executive Incentive Bonus Plan FOR FOR 1,155 5/8/07 Provide for Cumulative Voting FOR FOR 1,155 5/8/07 Social Proposal FOR FOR 1,155 5/8/07 lOCIIOOD CAPITAL ADVISOlS 13 Proxy Voting Record I JPMorgan Chase & Co. (JPM) Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Elect Directors FOR FOR 900 5/15/07 Ratify Auditors FOR FOR 900 5/15/07 Put Repricing of Stock Options to Shareholder Vote FOR FOR 900 5/15/07 Performance -Based and/or Time-based Equity Awards FOR FOR 900 5/15/07 Advisory Vote to Ratify Named Executive Officers' Compensation FOR FOR 900 5/15/07 Separate Chairman and CEO Positions FOR FOR 900 5/15/07 Provide for Cumulative Voting FOR FOR 900 5/15/07 Require a Majority Vote for the Election of Directors FOR FOR 900 5/15/07 NYSE Euronext (NYX) Mgmt Vote SHS Ballot Issue R C V d Date ec ast ote Elect Directors Ratify Auditors PG&E (PCG) FOR FOR FOR FOR 515 515 617107 617107 Mgmt Vote SHS Ballot Issue R C V d Date ec ast ote Elect Directors Ratify Auditors Performance-Based and/or Time-Based Equity Awards Restore or Provide for Cumulative Voting PPL Corp. (PPL) FOR FOR FOR FOR FOR FOR FOR FOR 1,075 1,075 1,075 1,075 4/18/07 4/18/07 4/18/07 4/18/07 Mgmt Vot e SHS Ballot Issue R C V d Date ec ast ote Elect Directors Ratify Auditors Adopt Simple Majority Vote Praxair, Inc. (PX) FOR FOR FOR FOR FOR FOR 1,192 1,192 1,192 5/23/07 5/23/07 5/23/07 Mgmt Vote SHS Ba ll ot Issue R C V d Date ec ast ote Elect Directors Ratify Auditors Require Majority Vote for Election of Directors Submit Shareholder Rights Plan (Poison Pill to Shareholder Vote lOCIWOOD CAPITAL ADVISOlS FOR FOR FOR FOR FOR FOR FOR FOR 675 675 675 675 4/24/07 4/24/07 4/24/07 4/24/07 ~I I I I I I I I I I I I I I I I .I I 14 I I I I · . I 1 Proxy Voting Record I I I I I I I I I I I I I I I I I I I e I e I Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Elect Directors FOR FOR 1,720 5/16/07 Ratify Auditors FOR FOR 1,720 5/16/07 Approve Omnibus Stock Plan FOR FOR 1,720 5/16/07 Amend Executive Incentive Bonus Plan FOR FOR 1,720 5/16/07 Provide for Cumulative Voting FOR FOR 1,720 5/16/07 Separate Chainnan and CEO Positions FOR FOR 1,720 5/16/07 Label Genetically Modified Organisms FOR FOR 1,720 5/16/07 Prepare Sustainability Report FOR FOR 1,720 5/16/07 Sears Holdings Corp (SHLD) Mgmt Vote SHS Ballot Issue R C V d Date ec ast ote Elect Directors Ratify Auditors Amend Omnibus Stock Plan Simon Property Group , Inc. (SPG) FOR FOR FOR FOR FOR FOR 284 284 284 5/4/07 5/4/07 5/4/07 B II t I Mgmt Vote SHS D t a o ssue R C V d a e ec ast ote Elect Directors Ratify Auditors PayforSuperiorPertonnance Advisory Vote to Ratify Named Executive Officers' Compensation Submit Severance Agreement (Change in Control) to shareholder Vote Stericycle, Inc. (SRCL) FOR FOR FOR FOR FOR FOR FOR FOR FOR FOR 560 560 560 560 560 5/10/07 5/10/07 5/10/07 5/10/07 5/10/07 Mgmt Vote SHS Ballot Issue R C V d Date ec ast ote Elect Directors Ratify Auditors Increase Authorized Common Stock lO CIWOOD CAPITAL ADVISOIS FOR FOR FOR FOR FOR FOR 655 655 655 5/16/07 5/16/07 5/16/07 15 Proxy Voting Record I T. Rowe Price Group , I nc. (TROW) Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Elect Directors Ratify Auditors Approve Non-Employee Director Omnibus Stock Plan Other Business The Boeing Co. (BA) FOR FOR FOR FOR FOR FOR FOR FOR 1,150 1,150 1,150 1,150 4/12/07 4/12/07 4/12/07 4/12/07 Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Elect Directors FOR FOR 520 4/30/07 Ratify Auditors FOR FOR 520 4/30/07 Adopt Human Rights Policy FOR FOR 520 4/30/07 Separate Chairman and CEO Positions FOR FOR 520 4/30/07 Submit Shareholder Rights Plan (Poison Pill) to Shareholders Vote FOR FOR 520 4/30/07 Advisory Vote to Ratify Named Executive Officers' Compensation FOR FOR 520 4/30/07 Performance-based and/or Time-based Equity Awards FOR FOR 520 4/30/07 Claw-back of Payments under Restatements FOR FOR 520 4/30/07 VCA Antech, Inc. (WOOF) Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Elect Directors Ratify Auditors Approve Executive Incentive Bonus Plan Wendy's International, Inc. (WEN) FOR FOR FOR FOR FOR FOR 1,445 1,445 1,445 6/4/07 6/4/07 6/4/07 Mgmt Vote SHS Ballot Issue Rec Cast Voted Date Elect Directors FOR FOR 1,300 4/26/07 Ratify Auditors FOR FOR 1,300 4/26/07 Approve Executive Incentive Bonus Plan FOR FOR 1,300 4/26/07 Approve Omnibus Stock Plan FOR FOR 1,300 4/26/07 Label Genetically Modified Organisms FOR FOR 1,300 4/26/07 Prepare Sustainability Report FOR FOR 1,300 4/26/07 lOCIWOOD CAPITAL ADVISOlS I I I I I I I I I I I I I I I I 16 I .1· I I I I I I I I I I I I 1 ~I I I I I 1 ... ' . BOGDAHN CONSULTING, LLC .. simplifying your investmen~ decisions City of -Palm Beach -Garden? . 'GENERAL EMPLOYEES' RETIREMENT SYSTEM Www.bogdahnconsulting.com . 340 West Central Avenue Suite 300 + Winter Haven, Florida 33880 Telephone (863) 293-8289 +Facsimile (863) 292-8717 I · I ll I I I I I I I I I I I I I I I II Performance Evaluation for ·Palm Beach Gardens General Employees Pension Plan Rockwood & Sawgrass For the Period Ending June 30, 2007 Presented by: Bogdahn Consulting , LLC I I I I I I I I I I I I I I I I I I ------------------------------------------------ MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell 2000 HFR· Diversified FOF Lehman US Agg. Lehman US Gov . Lehman MBS Fixed The Market Environment Asset Class Performance Period Ended: June 30, 2007 I Quarter Returns I 6.4% -------- ~--------------------------~ -0.6% Lehman US Credit ·0.7% 3mos. T·Bill -3.0% 0.0% 3.0% 6.0% 9.0% 12.0% Source: MSCI Capital Markets, Russell Co., HFR, Lehman, & Bogdahn Consulting, LLC. I One Year Market Performance I MSCI EAFE 27 ---------- MSCIEmerg. Mkts. +---~~~~~~~~--------------------~ S&P 500 Russell 3000 Russell 1000 Russell 2000 Lehman US Agg. Lehman US Gov. -!==::C., Lehman MBS Fixed Lehman US Credit+===:!, 3mos. T·Bill 20.6% 20.4% 14.% 15.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% Bogdahn Consulting, LLC. + I· II I I I I I I I I I I I I I I I I I The Market Environment Asset Class Performance Period Ended: June 30, 2007 I Five Year Annualized Performance I MSCIEAFE 17.7% MSCI Emerg. Mkts. -1----------------------' 27.1% S&P 500 Russell 3000 Russell 1000 Russell 2000 Lehman US Agg. Lehman US Gov. -F===l Lehman MBS Fixed i===!........., Lehman US Credit ~------' 3mos. T·Bill 2.7% 0.0% 5.0% 10.0% 15.0% 20.0% I Ten Year Annualized Performance I 7.7% i ---------- MSCI EAFE MSCI Emerg. Mkts. 6.7Yo I S&P 500 Russell 3000 Russell 1000 Russell 2000 HFR· Diversified FOF -1------------..J 7.7%! Lehman US Agg. 6.0% --------- Lehman US Gov. 5.9% ~==========~ Lehman MBS Fixed Lehman US Credit -F=========:=:!-, 6.3% 3mos. T·Bill 3.7% 9.1% 0.0% 3.0% 6.0% 9.0% 25.0% 12.0% Bogdahn Consulting, LLC. + 30.0% 15.0% I I· I I I I I I I I I I I I I I I I Source: Russell Co . Qtr 20 15 --------······· 10 5 Qtr The Market Environment Equity Style Performance Period Ended: June 30 , 2007 I Russell All Cap Style Performance I lyr 3yr 5yr l•aooo Growth •aooo Index •aooo Value I I Russell Large Cap Style Performance I lOyr ----·--··--· ·-·---1.3..3---------·-·--. --·- 11.3 lyr 3yr 5yr lOyr I• 1000 Growth •1000 Index •1000 Value I \Russell Small Cap Style Performancel 20 ~--------------~~--------------------------------------------------, 16.8 16.4 16.1 16 12 8 4 0 +-I...-- Qtr lyr 3yr 5yr lOyr I• 2000 Growth • 2000 Index • 2000 Value I Bogdahn Consulting, LLC. + I· I I I I I I I I I I I I I 'I I I I I 7.00 6.00 5.00 :;::-a 4.00 3.00 2.00 1.00 0.00 1 Mo 3Mo The Market Environment Treasury Yield Curve Period Ended: June 30, 2007 Treasury Yield Curve • • c:::::::::::::: : : 6Mo 1 Yr 2Yr 3Yr J-+-01 07 ---02 07 J Source: Federal Reserve Bogdahn Consulting, LLC. + : : : 5Yr 10Yr 30Yr I · I I I I I I I I I I I I I I I I I I 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 ach ieve. 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 m ight 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. 1 I · I I . I I I I I I I ·I I I I I I I I Palm Beach Gardens General Employees' General Employees Pension Plan Executive Summary Account Reconciliation 06/30/2007 Qtr 2007 09/30/1994 YTD Incept Trailing Returns through June 30, 2007 1 Yr 2Yr 3Yr 4 Yr 5Yr Calendar Year Returns 06/30/2007 2007 Investment Policy Index Weight ·j ~~~j ~~wrrrjjjffjjjjjrrr:c:m::j::r :::::ccccr:::r::::m ~P:!P:?::: +~~Tf:~:ey~~:~~~:::::::::u:::::::::::::::.::::::::m:m::.u:::::::r ~~~~?:: :~P.!::~f:~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~1 ~~:: ......... ·············· .................................. ····· ..... . :J~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::1:~Q.;¢~:( 09/30/1994 6Yr 7Yr 8Yr 9 Yr 10 Yr Incept Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 Returns in Up Markets 09/30/1994 3Yr 5Yr 10 Yr Incept 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 3Yr 5Yr 10 Yr Incept ::f:~n~::::::::::::::::::::::::::::~~;~:::::::::::::::::~~:~:::::::::::::::~:i~:~::::::::::::::::::::~~:z;~:: ::w~~::::H::H:·/:)H3 ~~-Hl.l·l/lH~d::::.:-::::-H~~f#:H::::u:::::::~~:~!~:: .:~®:::::::::::::::::::::::::::~~~~::::::::::::::::~~;~::::::::::::::::~~~:::::::::::::::::::::~;9 :: Index change effective 111/06 from LB Gov/Credit to LB Aggregate 1/1/2007 International added to Policy 2 I· I I Palm Beach Gardens General Employees Pension Plan I Asset Allocation as of June 30, 2007 I At Market Cash & Equiv I 2% I Fixed Income 30% I I I I At Cost I Cash & Equiv 3% I I Fixed Income 35% I I I I Equ ity Limitations 65@ Cost I 3 70@ Market I I I I I I I I I I I I I I I 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 Ret urns: 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 I · I I I I I I I I I I I I I I I I I I Palm Beach Gardens General Employees' General Employees Pension Plan Universe Comparisons 60°/o PLCC, 35°/o HQB & 5% International Trailing Returns through June 30, 2007 Return %-tile Return %-tile 1 Yr 15.12 47 15.21 43 2Yr 10.21 48 9.83 68 3Yr 8.75 54 8.82 50 4 Yr 9.30 58 9.34 55 5 Yr 7.60 84 8.65 33 6Yr 5.19 58 5.70 36 7Yr 5.32 25 4.13 44 8Yr 5.02 29 4.40 44 9Yr 10Yr 5.55 . 6.66 34 47 5.53 34 7.12 28 ~ Y:~R#~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~: ~: ~: ~: ~: ~: ~ ~ ~ ~::: ~ ~: ~ ~ ~ ~ ~ ~ ~: ~ ~ ~ ~ ~ ~ ~ ~ ~: ~: ~ ~ ~ ~ ~ ~ ~: ~: ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~: ~ ~ ~ ~ ~: ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~: ~ ~ ~ ~ ~: ~ ~: ~ ~ ~ ~: ~ ~ ~ ~ ~ ~ ~: ~: ~: ~: ~: ~ ~: ~ ~ ~: ~ ~:: ~:: ~::: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~ ~ ~: ~ ~ ~: ~: ~: ~: ~: ~: ~: ~: ~: ~ ~: ~: ~ ~: ~: ~::: ~: ~: ~::: ~: ~: ~: ~: ~: ~: ~: ~: ~::: ~ ~ ~: ~: ~: 5th %-tile 17.83 12.83 11.38 11.74 10.28 7.45 8.16 6.84 7.24 8.36 25th %-tile 50th %-tile 75th %-tile 95th %-tile 15.78 15.06 14.53 13.27 Calendar Year Returns 10.72 10.17 9.67 8.20 9.51 8.80 8.43 7.04 10.17 9.39 9.01 7.87 8.87 8.28 7.80 6.96 6.17 5.31 4.82 3.87 5.29 3.89 3.33 2.00 5.37 4.19 3.73 2.83 5.94 5.20 4.79 3.85 7.20 6.63 6.19 4.96 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 Return 2.07 6.65 9.66 3.98 8.33 14.87 -9.90 0.84 5.74 7.81 %-tile 100 9 87 52 42 99 66 13 25 81 : ~~~~~: ~::::: ~: ~: ~: ~: ~: ~ ~ ~: ~::: ~::: ~::::::::: :·::::::::::::::::::::::::::::::::::::::::::::::::: ~:::::::::::: ~: ~: ~::::::::: ~:::::::::::::::::: ~:::::::::::::::::::::::::::::::::::::::::::: ~ ~ ~::: ~: ~ ~: ~ ~ ~: ~ ~: ~ ~::: ~:: ~ ~: ~::::::::::::: ~:: ~::::::: ~:::::::::::::::::::::::::::: Return 3.91 5.08 11 .12 3.97 8.25 18.76 -9.53 -3.67 -0.92 11.40 %-tile 70 68 53 52 44 49 57 56 59 57 : ~~~~::::::::::::::::::::::::::::: ~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ~::::::::::: ~:::::::::::::::::::::::::::::::::::::::::::: ~ ~: ~: ~: ~: ~ ~ ~::: :: ~::::::::::::: ~::::: :::::::::: ~:::::::: ~:::::::::::::::::::::::: :::: :~:::::::: :: 5th %-tile 5.44 7.12 14.82 6.97 11 .18 22.12 -3.66 3.72 12.90 23.15 25th %-tile 50th %-tile 75th %-tile 95th %-tile 4.46 4.10 3.85 3.20 5.77 5.36 4.97 4.05 12.11 11 .15 10.46 7.55 4.98 4.02 3.48 2.46 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 June 30, 2007 9.19 8.06 7.20 5.29 19.73 18.69 -7.68 -9.25 17.65 -10.28 15.82 -12.08 Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 1/1/2007 International added to Policy 5 -1.04 -3.50 -4.42 -9.33 5.47 -0.37 -1.71 -4.84 13.55 11.89 9.02 -0.28 I· I I I I I I I I I I I I I I I I I I Palm Beach Gardens General Employees' Total Fixed Income Account Reconciliation 06/30/2007 Qtr Executive Summary Investment Policy 2007 09/30/1994 YTD Incept Index Weight ~~wwr¥~!~+:u~~~~u~uumu ~~~~~uu~u ~:uu~:<mH 1M ~: :f~~M~~:ey~f:¥:~~:~~f%f%%~:~:f<>Uf%ffd m?:~?:m :~ :Nt!t :F.i ·:·:·:·:·:·:·:·:·:·:-:-:-:-:·:·:·:·:·:·:·:·:·:·:·:·:·:·:-~-:-:-:-:-:-:-:-:-:-:19 ·:-:-:-:-:-:-:-:-:-:-:14:7.:· :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ~::::::::: ~:::: ~~~ ~ ~ ~ ~ ~ ~ ~ ~: ~ ~ ~: ~:::::: ~ ~::::::: ~ ~:::::::::::::::::::::::::::::::::::::: :::::::::::::::::::::::::::: ~ ::::::::;:: ~: :::::: ~::::::::: ~::: ~::::::::: ~: ~: ~::::: ~::: ~: ~: ~: ~::::: :::: ~::::::::::::::::::::::::::::: ~::::::::::::::: ~: :::::::: ~: :::: ~::::: :::: ~: :: BW -~ ~f~ ~.~ Trailing Returns through June 30, 2007 09/30/1994 1 Yr 2Yr 3Yr 4 Yr 5 Yr · 6 Yr 7Yr 8Yr 9 Yr 1 0 Yr Incept Calendar Year Returns 06/30/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 Returns in Up Markets 09/30/1994 3Yr 5Yr 10 Yr Incept 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 3Yr 5Yr Sawgrass assumed fixed-10-26-05 $1 ,043 ,932.60 -Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 6 2000 1999 1998 09/30/1994 10 Yr Incept I· I I I I I I I I I I I I I I I I I I Palm Beach Gardens General Employees' Fixed Income & Cash -Sawgrass Executive Summary Account Reconciliation Investment Policy 2007 10/26/2005 06/30/2007 Qtr YTD Incept Index Weight ........ ······························· ............................ . :~~iji:Y~!~~::::::::::::::::::::::::::::~:::::::::::::::::~::::::::::::::::::~WM :: ·:¥.~~M~e :1~~~~~:®M :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::1 ~P:~~~:: :~W F:!?.W.K uu:u:uu::u ::::u:m:m:~~r ::::u::m m ~:m:mr w:w:a ~~:: :~~~~~:$t.k :::::::::::::::::::::::::::::::::::~1 :::::::::::::::::::::1~:::::::::::::::::::::::::Q4 :: ··············· .................................................... . ................ .. ................................................ .. .... .............. ............... ·························· ........ . Trailing Returns through June 30, 2007 1 Yr 2 Yr 3 Yr 4 Yr 5Yr Ca lendar Year Returns 06/30/2007 2007 ...... ························ ..................................... . ..... ························· ..................................... . ..... ............ .............. ... .. . ...................... ....... .. ..... ... ······················ ·································· ... . ······ ························ ..................................... . ..... ························· ····································· . ...... ······················ ....................................... . :-:·:·:·:·:·:·:-:-:-:-:-:-:-:-:-:-:-:-:-:-:·:·:·:·:·:·:·:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:·:·:·:·:·:·:-:-:-:-:-:-:-:-:-:-:· ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::;::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 10/26/2005 6Yr 7Yr 8 Yr 9 Yr 1 0 Yr Incept Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 Returns in Up Markets 10/26/2005 1 Yr Incept 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 7 Returns in Down Markets 1 Yr 10/26/2005 Incept ······························· .................................... . -~~) ~:~ I· I I I I I I I I I I I I I I I I I I Palm Beach Gardens General Employees' Total Equity Executive Summary Account Reconciliation Investment Policy 2007 09/30/1994 06/30/2007 Qtr YTD Incept Index ....................... ··············· ................ ··········· :~~®~:Y~!H ~::::::::::::::::::::::::~~~~:::::::::::::1 ~~~:::::::::::::::::::::::~~~:: :N~i :~ioW-~::::::::::::::::::::::::::::::::::::::::::::;11 :::::::::::::::::::~®.:::::::::::::::::::::~~~:: ·-2,~~ il < ~- Trailing Returns through June 30, 2007 Weight 09/30/1994 1 Yr 2Yr 3Yr 4 Yr 5Yr 6Yr 7Yr 8Yr 9 Yr 10 Yr Incept Calendar Year Returns · 06/30/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 :r:~~:::::::::::::::::::::::::::::::::::~~~?:::::::::::::~;1:~:::::::::1 ~\~:::::.::::::~~~~::::::::::t 1 :;~::::::::::~:*~:::·:::~~t ?:t :::::::::t\~t ::::::::::::~;~~::::::~6~::::::1:2 i ~~:: :1 ,:;: ~~ @:1 ~:~ j::~ @! •j:; tJ-~:1 I@ ~:~ i~:~ Returns in Up Markets Returns in Down Markets 09/30/1994 09/30/1994 3Yr 5Yr 10 Yr Incept 3Yr 5Yr 10 Yr Incept ........ ' ............................................... ' ,..... . . .............................. ·········· .......................... . :r@~HHLH:H::::::t ~;~::::::::>::::~~f ~>HH>~~~~HL::::t?:~~;~:: :r~~~uu::uu::/:U ~t UU::tf1 ~~ttt::::>~~~t H.::HH>#:~:l : :r~~~:::::::::::::::::::::::::1:s.:~::::::::::::::::f.~fJ::::::::::::::::f:~\:f::::::::::::::::::::::~~:~:: :W-~~::::::::::::::::::::::::::~~;~:::::.::::::::~1~~~:::::::::::::~~~:~::::::::::::::::::::~~~1 : ~~~~::::::::::::::::::::::::::~a:$::::::::::::::::~~~~::::::::::::::::~~~:?:::::::::::::::::::::::~tA : :~w.?.:::::::::::::::::::::::j:~~~~::::::::::::::::~~~::::::::::::::::~~~:t :::::::::::::::::::::@.;~:: Inception date is September 30, 1994 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees . Rockwood assumed account 10-26-05 $ 1,565,898.88 International bought 11/9/2006, will be added to Policy 1/1/2007 8 I· I I I I I I I I I I I I I I I I I I ~---~------------------------------------------------------------~ Palm Beach Gardens General Employees' Total Equity Universe Comparisons 95%, Pure Large Cap Core & 5°/o International Trailing Returns through June 30, 2007 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Return 20.21 14.36 11.47 13.21 9.14 5.09 4.75 4.69 %-tile 70 51 63 65 88 55 22 24 26 37 ~ f:~~~¥.: ~: ~: ~: ~: ~: ~: ~ ~ ~: ~:::::::::: ~:::: ~: ~ ~ ~: ~: ~: ~: ~::: ~: ~: ~ ~:: ~ ~:: ~::::: ~::: ~::::::::: ~: ~::::::: ~: ~: ~::::::::: ~:: ~:: ~: ~::: ~: ~:: ::::::: ~: ~ :~: ~: ~::: ~::: ~: ~::: ~::::::::: ~: ~: ~:::::::::: ~ ~: ~: ~: ~: ~: ~::: ~: ~: ~: ~: ~: ~: ~: ~: ~::::::::::::::: ~::::::::: ~::: ~: ~: ~: ~: ~::::::: ~: ~: ~: ~: ~ :~ Return %-tile 5th %-tile 25th %-tile 50th %-tile 75th %-tile 95th %-tile 20.82 38 24.74 21.41 20.56 20.01 17.83 Calendar Year Returns 14.56 11 .75 42 . 49 17.91 16.37 15.15 12.76 14.38 11.69 13.90 11.19 11.56 8.61 13.54 42 17.02 14.65 13.39 12.86 10.56 10.75 35 13.14 11.51 10.53 10.04 8.40 5.34 39 8.71 6.48 5.15 4.48 2.99 2.19 49 10.11 4.13 2.16 1.63 -0.81 2.81 49 7.4 7 4.29 2.72 2.28 0.21 4.86 45 8.30 5.77 4.69 4.34 2.04 7.15 39 9.72 7.82 6.93 6.46 3.46 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 Return 3.10 9.42 12.95 4.52 11.44 22.83 -21.03 -4.42 5.29 14.26 %-tile 100 9 87 68 33 98 38 13 22 80 : P:~!o/:: ~: ~: ~::::: ::::::::::::::::::::::::: ~::: ~:::::::::::: ~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ~::: ~: ~: ~::: ~::: ~: ~: ~: ~ ~ ~: ~: ~: ~: ~: ~: ~::: ~: ~: ~: ~: ~: ~: ~: ~::: ~::::::: ~: ~ ~ ~ ~: ~ ~ ~:: ~: ~: ~: ~: ~::: :: ~: ~::: ~:::::: ~::::::::::: ~ ~: ~: ~::::::::::::::: :::::::::::: Return %-tile 5th %-tile 25th %-tile 50th %-tile 75th %-tile 95th %-tile 6 .30 51 8.46 6.80 6.31 6.08 5.29 7.17 55 10.05 8.04 7.23 6.94 5.73 15.80 31 21.67 16.45 15,51 14.41 9.58 4.91 48 9.88 6.33 4.87 4.31 3.19 Returns are in percent "%-tlle" is the percentile ranking within the universe . Returns for periods exceeding one year are annualized. Incept is September 30, 1994 to June 30, 2007 10.88 37 14.89 12.34 10.67 9.94 5.65 28.68 -22.10 -11.88 34 49 47 31 .74 -13.28 0.74 29.63 -19.67 -8.02 28.18 -22.14 -12.02 26.60 -22.63 -12.47 23 .59 -25 .26 -20 .06 Rockwood assumed account 10-26-05 $ 1,565,898.88 International bought 11/9/2006, will be added to Polley 1/1/2007 9 -9.11 53 18.12 1.80 . -8.92 -9.61 -15.05 21.04 27 37.44 21 .15 20.26 16.13 -0.19 I · I I I I I I I I I I I I I I I I I I Palm Beach Gardens General Employees' Domestic Equity & Cash -Rockwood Executive Summary Account Reconciliation 06/30/2007 Qtr Investment Policy 2007 1 0/26/2005 YTD Incept Index Trailing Returns through June 30, 2007 Weight 10/26/2005 1 Yr 2Yr 3Yr 4 Yr 5Yr 6Yr 7Yr 8 Yr 9 Yr 1 0 Yr Incept Calendar Year Returns 06/30/2007 2007 . Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 Returns in Up Markets 1 Yr Inception date is October 26, 2005 All dollar values are shown in thousands. 10/26/2005 Incept Returns for periods exceeding one year are annualized. Returns are net of fees. Returns in Down Markets 10/26/2005 1 Yr Incept 10 I · I I I I I I I I I I I I I I I I I I Palm Beach Gardens General Employees' Domestic Equity & Cash -Rockwood Universe Comparisons Pure Large Cap Core Trailing Returns through June 30, 2007 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr Return 9.18 14.93 19.81 %-tile 9 31 77 Return 6.96 14.12 20.59 ~ ~~R¥.~~:: ~::::::::::::::: ~::::: ~::::::::::::: ~: ~: ~: ~: ~::::::::::::: ~: ~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::: ~: ~: ~::::: ~::::::::::: ~::::::: ~: ~! ~: ~::::::::::::::: ~::::::::::::: ::::::::::::::::::::::::::: 5th %-tile 9.90 18.61 24.34 17.66 15.33 16.76 13.13 8.84 9.28 7.25 25th %-tile 7.74 15.15 21.19 50th %-tile 6.95 14.06 20.37 75th %-tile 6.72 13.72 19.85 95th %-tile 5.50 12.33 17.89 Calendar Year Returns Qtr YTD 2006 Return 2.77 9.18 12.81 %-tile 1 00 9 75 Return %-tile 6.28 48 6.96 50 15.80 30 15.05 14.31 13.81 12.04 2005 12.68 14.55 11.48 6.53 4.12 4.29 11.60 13.33 10.50 5.15 2.11 2.82 11 .13 12.85 10.05 4.64 1.74 2.28 8.90 10.55 8.52 3.16 -0.00 -0.79 2004 2003 2002 2001 2000 1999 .................................................................................... ··································· ................... . :Y.~~~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 5th %-tile 8.40 9.90 20.97 11.33 25th %-tile 6.76 7.74 16.19 7.20 50th %-tile 6.26 6.95 15.48 5.09 75th %-tile 6.09 6.72 12.74 4.22 95th %-tile 5.18 5.50 4.79 1.07 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 June 30, 2007 11 15.14 33.34 -15.55 -1.49 13.61 35.03 11.51 28.99 -20.13 -9.35 -0.20 22.80 10.39 27.83 -22.23 -12.08 -7.39 20.27 8.38 24.97 -23.39 -13.51 -9.63 16.39 5.14 20.58 -26.60 -19.10 -14.67 6.13 I I I I I I I I I I I I I I I I I I Palm Beach Gardens General Employees' International Equity Executive Summary Account Reconciliation 06/30/2007 Qtr 2007 11/07/2006 YTD Incept Trailing Returns through June 30, 2007 1 Yr 2Yr 3Yr 4 Yr 5Yr Investment Policy Index Weight ··········· ..................................................... ··-· ......... ·········· .............................. ·········· ........ . . ·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.'.',',',",',".',',",',','.'.',',',',',',',',',',',',',',',' :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ~:::::::::::::::::::;:::::::::::::::::::::::::::::::::::::: .·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.· .·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.· 11/07/2006 6Yr 7Yr 8Yr 9 Yr 10 Yr Incept .............. ················· ............................................................................................................ . ~ 9~ ~ ~ ~ ~ ~ ~ ~::::::::::::::::: ~ ~ ~ ~ ~ ~ ~::::: ~:::: ::::::::::::: ~: ~: ~::::::::::::::::::::::::::: :::::::::::::::: ~: ~::::::: ::::::::::::: ~::::::: ::::::::::::::::::::::::::::::::::::::::::::::::::: ~: ~ ~ ~ ~ ~: ~: ~ ~ ~: ~:::::::: ~::::::::::: ~::::::::::::::::::::::: :::::::::::: ~ :~~~t :: Calendar Year Returns 06/30/2007 2007 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998 Returns in Up Markets Inception date is November 7, 2006 All dollar values are shown in thousands. 11/07/2006 Incept Returns for periods exceeding one year are annualized. Returns are net of fees. Returns in Down Markets 12 11/07/2006 Incept I · I I I I I I I I I I I I I I I I I I Palm Beach Gardens General Employees' International Equity Universe Comparisons International Equity Trailing Returns through June 30, 2007 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr Return 13.12 %-tile 20 :r91~~¥.::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::·::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Return 11.09 %-tile 50 :~~R¥-~~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::·::::::::::::::::::::::::::::::::::::::::::::::::u::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 5th %-tile 19.84 38.95 42 .78 40.72 37 .13 35.26 29.17 24.61 17.31 19.22 25th %-tile 50th %-tile 75th %-tile 95th %-tile 12.38 11.07 9.79 7.69 Calendar Year Returns 25 .90 22.96 20.57 17.68 30.57 27 .13 25.15 21 .70 29.77 27.14 25.29 21.96 24.81 22.26 20.35 17.40 26 .84 24.40 22.32 20.21 20.06 17.55 15.24 13.60 15.84 12.95 11.13 8.69 10.23 7.10 4.58 1.27 12.55 9.14 7.33 5.24 Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 Return 8.58 13.12 %-tile 21 20 Return %-tile 6 .67 63 11 .09 50 ;p ~~~::::::::::::::::::::::::::::::;::::::::::::::.::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::;:::;:;:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::;:::::::;:::::::::: 5th %-tile 12.22 19.84 35.29 38.92 32.32 65.72 1.26 2.71 2.11 117.71 25th %-tile 50th %-tile 75th %-tile 95th %-tile 8.35 7.19 6 .18 4.45 12.38 11.07 9.79 7,69 28.37 25.65 22.79 18.65 23.76 16 .31 13.13 9.40 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 June 30, 2007 13 23.60 19.34 16.57 12.66 48.59 -8.48 -10.53 -8.63 38.92 -14.41 -18.53 -15.84 33.20 -18.10 -23 .29 -24 .08 27.55 -23.32 -29 .32 -34.43 67.62 47.72 29.01 17 .12 I· I I I I I I I I I I I I I I I I Fund(%) Policy(%) Palm Beach Gardens General Employees' General Employees Pension Plan U -~P~M~a=r~k=e~t~R=e~tu~r=ns~------------------------------------------, 25.00% ...- 20.00o/o ------------------------------------- 15.00% ------------ 10.00% 5.00% 0 .00% 11.60 13.79 15.99 16.51 11.76 15.56 17.65 18.60 Difference (%) -0.16 -1.77 -1.66 -2.09 Ratio 98 .64 88.62 90.59 88.76 #Up Qtrs 10.00 15.00 28.00 39.00 0.00% -5.00% -1 0.00% -15.00% Fund(%) -2.26 -9.01 -12.27 -12.27 Policy (%) -2.41 -9.71 -13.94 -13.94 Difference (%) 0.15 0.70 1.67 1.67 Ratio 93.78 92.79 88.02 88.02 #Down Qtrs 2.00 5.00 12.00 12.00 I D Fund(%) • Pol icy(%) I Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 1/1/2007 International added to Policy 14 I· I I I I I I I I I I I I I I I I I I v a I u e --------------------------------------------------. Palm Beach Gardens General Employees' General Employees P e nsion Plan Objective Comparison $4 ,000\-----------------------------~ $3 500 -------------------------------------------------------------------------------------------------------------------------------------------------------------------- ' = =-------'71':~ ~ ~,.~-----*-7"- $3 ,000 -------------------------------------------------------------------------~-----------------------------------------------------------------------------~---~- ,, ~ .--r--.--.-,---r-.--,--- A J>. r-v --------------------------,--,--1-A-ll-H::H>--r-~-"-lTJr~vl-+r--v -v ---- ,---~ "ii:W--tl-+--H--HrJ>.t"ll-t-~-+----v v A4 $2 ,500 ~ r=l I r:t ,.., ,..-,_ c:::L ~ ,.., . ,..-,_ j-t:T $2 ,00( I t..:r --~ ---o -r'-' -D --~ ---o ---- $1,50( $1 ,00( $500 m~~~m~~~~~~~~~~~-~~~m Quarter Ending 0 Fund + Policy + Nominal 8% B-CPI + 4% Inception date is September 30, 1994 I 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 I 15 I · I I I I I I I I I I I I I I I I I 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 a llocation 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 sect ion 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 I· I I I I I I I I I I I I I I I I I I Palm Beach Gardens General Employees' General Employees Pension Plan Attribution of Returns Attribution of Performance to show Manager Contribution Current Quarter Year to Date 3 Years 5 Years 10 Years Incept Policy + Manager Contribution = Fund .................................. ··············· .................. . ........ ········ ..... ······· ...... . ............... ··················· . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........ .. ······· ................ . ............. ..... ................ . ........ .... ...... ········ ....... . ..... ········ ····················· ..................... ·············· ..... ····· ....................... . ............. ..... ....... ......... . ................................... ..... ...... ....... ····· .......... . ........... .......... ............. . ..... ..... ........ ·············· .. .. ... ..... ········ ............... . ... ........ ..... .. ... ............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................... ·············· ................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................... ..... ..... ·················· ..... . .......... ·················· ······ :-:-:-:-:-:-:-:·:·:·:·:·:·:·:·:·:·:·:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-: ... ··························· ..... .................................. ·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.· .................................. ........ ................. ..... .... . ....................... .. ........ . ... ............. ········ .......... . ................................... ............. ····· ............... . ............. ... .. . . . ............. . ..... ........ ..... ... ....... ..... . ............. ..... ... ....... ..... . ................................... .......... ........ ... ....... ..... . ........... ..... .. ... ............. . ····· ............. ················ 1.12 :::::::::::::::::::::::::::::::::::::::::::::::::::::::~:4e :: ................... ················ .................................. ... ........ ..... .. . ............... . ········ ......................... . ........... ..... .. .. . . .. ... ........ ..... .................. . ·········· ....................... . ........... ..... ... .. ............. . ..... ..... ... ..... ... ....... ..... . 9.98 :::::::::::::::::::::::::::::::::::::::::::::::::::::::;too :: ................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... ... .. .................. ······ ................................... Fund 2.07 6.65 8.75 7.60 6.66 8.98 Attribution of Manager Contribution between Asset Allocation and Security Selection Asset Allocation Current Quarter -1.51 Year to Date -2.22 3 Years -3.85 5 Years -3.75 10 Years -3.22 Incept -4.42 Asset Allocation + Security Selection = Manager Contribution :-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-: Security Selection ~~~}/})A~i~~g$r ~C~~tr!~~ti~~~~ -:-:-:·:·:(-:·:·:·:·:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:- ............ ······················ ................... ··············. :-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-: ......... ················ ......... . ...... ............ ....... ...... .. . ..... .. . ............ .......... ... . ......... ················ ........ . .... ... ..... ................... ... . ................... ...... ...... .. . 3 . 79 ~//I/U:UC~~HU~U!HUiH~i ~t:: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ·:·:-:-:-:<·:·:·:-:-:-:-:-:-:·:·:-:-:-:-:-:·:·:·:·:·:·:·:·:-:-:-:·:· ··············· .................. . :-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-: ................................... ..... ......... .... .. ..... ........ . .... .... ....... ... ................ . ..... ... ·········· ....... ········ . .............. .... ··············· . ........ .... .. . ··········· ........ . ········ ······ ...... ····· ........ . Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 1/1/2007 International added to Policy 17 I I· I I I I I I I I I I I I I I I I I 6.00% 5.00% p 4 .00% e 3.00% r c 2.00% e n 1 .00% t 0.00% E f -1.00% f e -2 .00% c -3.00% t -4.00% -5.00% 6.00% 5.00% p 4 .00% e 3.00% r c 2 .00% e n 1.00% t 0.00% E f -1.00% f e -2 .00% c -3.00% t -4.00% -5.00% Palm Beach Gardens General Employees' General Employees Pension Plan Asset Allocation Effect ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------ S02 002 M03 J03 S03 003 M04 J04 S04 004 M05 J05 Quarter Ending Security Selection Effect ···-·······-····-··1 ··--···---·--·····························----------·············-···--·-·-······--······-······----····---·····-·---····-····-----·-- ····--··········.,.../..····--------··--·-----·······-----········--------·-·--·····---·-······-··-······-··----------------···---··-···-··---······--------··--·--- S02 002 M03 J03 S03 003 M04 J04 S04 004 M05 J05 S05 005 Quarter Endi ng I • Quarterly Effect -Cumulative Effect 506 0 06 M07 J07 I Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 1/1/2007 Internationa l added to Policy 18 I· I I I I I I I I I I I I I I I I I I 80. 70. 60 50. 40 30. 20. 10. 0. Palm Beach Gardens General Employees' General Employees Pension Plan Asset Allocation vs Targets Quarter Ending I • Cas h & Equiv --* Target J04 S04 004 M05 J05 S05 Quarter Ending I • Equity --* Targetl I 80 .00%.-------------------------------------------------------------------~ 70 .00 % ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 60 .00% ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 50.00o/o ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r=-.---r--or- 40 .00% r--r-,--~ ...-!!>-.....=... r--r--,-,:._ '" ------------------- 30 .00% 20 .00% 10 .00% O.OO% S02 002 M03 J~3 S~3 __ .----~ ---.==-- J I I I 003 M04 J04 S04 004 M05 J05 S05 005 M06 J06 S06 006 M07 J07 Quarter Endi ng I 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 I · I I I I I I II I I I I I I I I I I I Palm Beach Gardens General Employees ' General Employees Pension P lan Asset Allocation vs Targets 80 .00°/t:.~---------------------------------, 70.000ft ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 60.000ft ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 50.000ft ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 40.000/t ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 30.000ft ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 20 .000ft ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 10 .000/t ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- * Target I Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 1/1/2007 International added to Policy 20 I I · I I I I I I I I I I I I I I I I I I 5.00% 4.00% 3.00% 2 .00% R 1.00% e t 0.00% u r -1.00% n -2.00% -3 .00% -4 .00% -5.00% $17 $16 $15 $14 v a $13 I u e $12 $11 $10 $9 Palm Beach Gardens General Employees' General Employees Pension Plan Manager Contribution ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------·-------------------------------------------------------------------------------------------------- 003 M04 J04 S04 004 M05 J05 S05 005 Quarter Ending I • Quarterly -Cumulative I Growth of $100 Fund vs Policy M04 J04 S04 004 M05 J05 S05 Quarter Ending I D Fund -8---Policy I Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 1/1/2007 International added to Policy 21 '•· I I II I I I I I II I I I I I I I I I I Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis ($) Period Fund Policy Diff Nominal8% Diff CPI +4% Ending Sep 1994 1,079 1,079 0 1,079 0 1,079 Dec 1994 1,059 1,078 -20 1,098 -39 1,090 Mar 1995 1,211 1,240 -29 1,194 17 1,188 Jun 1995 1,369 1,421 -51 1,294 75 1,286 Sep 1995 1,432 1,495 -63 1,316 116 1,301 Dec 1995 1,533 1,600 -67 1,365 168 1,338 Mar 1996 1,634 1,697 -62 1,452 182 1,431 Jun 1996 1,688 1,752 -64 1,486 202 1,461 Sep 1996 1,728 1,800 -72 1,518 210 1,488 Dec 1996 1,820 1,916 -96 1,551 270 1,514 Mar 1997 1,927 2,045 -118 1,685 242 1,647 Jun 1997 2,141 2,284 -144 1,717 424 1,664 Sep 1997 2,328 2,423 -94 1,752 576 1,691 Dec 1997 2,375 2,530 -155 1,820 556 1,741 Mar 1998 2,568 2,756 -188 1,856 712 1,769 Jun 1998 2,550 2,842 -291 1,893 657 1,797 Sep 1998 2,385 2,730 -345 1,928 456 1,818 Dec 1998 2,679 3,106 -427 2,001 678 1,874 Mar 1999 2,642 3,168 -526 2,025 617 1,888 Jun 1999 2,790 3,256 -466 2,033 757 1,890 Sep 1999 2,647 3,131 -484 2,063 584 1,917 Dec 1999 2,821 3,391 -570 2,095 726 1,934 Mar 2000 2,907 3,490 -583 2,149 758 1,999 Jun 2000 2,843 3,432 -589 2,167 675 2,010 Sep 2000 2,926 3,436 -510 2,192 734 2,027 Dec2000 2,945 3,324 -380 2,225 719 2,042 Mar 2001 2,846 3,104 -258 2,243 603 2,061 Jun 2001 2,927 3,183 -256 2,251 676 2 ,068 Sep 2001 2,675 2,893 -218 2,229 446 2,028 Dec 2001 2,827 3,062 -234 2,256 571 2,013 Mar 2002 2,824 3,046 -222 2,283 541 2,040 Jun 2002 2,621 2,805 -184 2,290 331 2 ,038 Sep 2002 2,397 2,540 -144 2,305 92 2,041 Dec 2002 2,434 2,655 -221 2,313 121 2,024 Mar 2003 2,385 2,609 -224 2,345 41 2,068 Jun 2003 2,534 2,852 -317 2,358 176 2,050 Sep 2003 2,533 2,861 -329 2,373 160 2,056 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 Diff 0 -31 23 84 131 195 203 -227 240 306 280 477 637 635 799 753 566 805 753 900 730 887 907 833 899 903 785 859 648 814 783 583 356 410 318 484 477 I · I I I I I I I I I I II i• I I I I I I Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis($) Period Fund Policy Diff Nominal8% Diff CPI +4% Ending Dec 2003 2,680 3,036 -356 2,388 292 2,035 Mar 2004 2,741 3,094 -352 2,424 317 2,077 Jun 2004 2,717 3,068 -351 2,453 263 2,105 Sep 2004 2,674 3,045 -371 2,469 205 2,096 Dec 2004 2,805 3,188 -383 2,483 321 2,088 Mar 2005 2,745 3,112 -367 2,504 240 2,115 Jun 2005 2,717 3,117 -400 2,490 228 2,087 Sep 2005 2,740 3,148 -408 2,513 227 2,129 Dec2005 2,779 3,177 -398 2,541 238 2,109 Mar 2006 2,812 3,206 -394 2,549 264 2,121 Jun 2006 2,765 3,162 -396 2,581 184 2,159 Sep 2006 2,834 3,276 -442 2,591 242 2,141 Dec 2006 2,906 3,386 -481 2,605 300 2 ,116 Mar 2007 2,979 3,369 -390 2,599 380 2,116 Jun 2007 3,022 3,482 -459 2,631 391 2,148 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 Diff 645 664 611 578 717 630 630 611 671 691 606 692 790 863 875 I· I I I I I I I I I I I I I I Period Ending Dec 1994 Mar 1995 Jt.m 1995 Sep 1995 Dec 1995 Mar 1996 Jun 1996 Sep 1996 Dec 1996 Mar 1997 Jun 1997 Sep 1997 Dec 1997 Mar 1998 Jun 1998 Sep 1998 Dec 1998 Mar 1999 Jun 1999 Sep 1999 Dec 1999 Mar 2000 Jun 2000 Sep 2000 Dec 2000 Mar 2001 Jun 2001 Sep 2001 Dec 2001 Mar 2002 Jun 2002 Sep 2002 Dec 2002 Mar 2003 Jun 2003 Sep 2003 Dec2003 Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis (0/o) Fund Policy Diff Nominal8% Diff CPI +4% -1.67 0.16 -1.83 1.94 -3.61 1.22 7.15 7.82 -0 .67 1.94 5.21 2.12 6.68 8.32 -1.64 1.94 4.74 1 .71 4.85 5.52 -0.67 1.94 2.91 1.45 5.46 5.49 -0.03 1.94 3.52 1.08 2.64 2.24 0.40 1.94 0.70 2.39 2.91 2.88 0.03 1.94 0.97 1.69 2 .22 2.61 -0.39 1.94 0.28 1.69 5.12 6.23 -1.11 1.94 3.18 1 .49 0.17 1.30 -1.13 . 1.94 -1.77 1.89 11.16 11.79 -0.63 1.94 9.22 1.09 8.66 5.95 2.71 1.94 6.72 1.49 0.59 3.06 -2.47 1.94 -1.35 0.99 8 .07 8.90 -0.83 1.94 6.13 1.59 -0.75 3.05 -3.80 1.94 -2.69 1.49 -6.44 -3.89 -2.55 1.94 -8.38 1 .29 10.89 12.51 -1.62 1.94 8.95 1.09 -0.83 2.50 -3.33 1.94 -2.77 1.59 6.80 3.77 3 .03 1.94 4.86 1.69 -4.78 -3.56 -1.22 f94 -6.72 1.99 6.89 8.60 -1.71 1.94 4.95 1.29 2.62 2.57 0.05 1.94 0.68 2.69 -1.42 -1.02 -0.40 1.94 -3.36 1.69 3.54 0.63 2 .91 1.94 1.60 1.69 0 .95 -3.01 3 .96 1.94 -0.99 1.19 -2.54 -5.93 3.39 1.94 -4.48 2 .19 4.11 3.69 0.42 1.94 2 .17 2.09 -6.53 -7.20 0.67 1.94 -8.47 1.18 6.32 6.41 -0.09 1.94 4.38 0.09 0.47 0.03 0.44 1.94 -1.47 2.19 -5.93 -6.75 0.82 1.94 -7.87 1.69 -7.51 -8.45 0 .94 1.94 -9.45 1 .59 3.08 5.95 -2.87 1.94 1.14 0.98 -1.47 -1.24 -0.23 1.94 -3.41 2.80 7.62 10.56 -2.94 1.94 5.68 0.69 1.16 1.44 -0.28 1.94 -0.78 1.79 7.08 7.21 -0.13 1.94 5.14 0.49 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 Diff -2.89 5.03 4.97 3.40 4.38 0.25 1.22 0.53 3.63 -1 .72 10.07 7.17 -0.40 6.48 -2.24 -7.73 9.80 -2.42 5.11 -6.77 5.60 -0 .07 -3.11 1.85 -0.24 -4.73 2.02 -7.71 6.23 -1.72 -7.62 -9.10 2.10 -4.27 6.93 -0.63 6.59 I· I I I I I I I I I I I I I I I I I I Period Ending Mar 2004 Jun 2004 Sep 2004 Dec 2004 Mar 2005 Jun 2005 Sep 2005 Dec 2005 Mar 2006 Jun 2006 Sep 2006 Dec 2006 Mar 2007 Jun 2007 Incept. Palm Beach Gardens General Employees' General Employees Pension Plan Quarterly Comparison Analysis (%) Fund Policy Diff Nominal8% Diff CPI +4% 2.67 2.25 0.42 1.94 0.73 2.59 -0.24 -0.25 0.01 1.94 -2.18 2 .19 -0.38 0.30 -0.68 1.94 -2.32 1.08 6.17 5.82 0.35 1.94 4.23 1.18 -1.19 -1.54 0.35 1.94 -3.13 2.59 1.32 2.21 -0.89 1.94 -0.62 1.69 1.75 1.79 -0.04 1.94 -0.19 3.20 2.07 1.50 0.57 1.94 0.13 -0.01 2.71 2.25 0.46 1.94 0.77 2.59 -1.09 -0.89 -0.20 1.94 -3.03 2.59 3.95 4.92 -0.97 1.94 2.01 0.98 3.84 4.49 -0.65 1.94 1.90 0.49 4.49 1.13 3.36 1.94 2.55 2.69 2.07 3.91 -1.84 1.94 0.13 2.39 8.98 9.98 -1.00 8.00 0.98 6.63 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 Diff 0.08 -2.43 -1.46 4.99 -3.78 -0.37 -1.45 2.08 0.12 -3.68 2.97 3.35 1.80 -0.32 2.35 I ~ I I I I I I I I I . I I I I I I I I I • 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 q uarters 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 t he 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 po licy. Higher numbers are better, indicating more return for the level of risk that was experienced. 26 '•· I I I I I I I I I I I I Palm Beach Gardens General Employees' General Employees Pension Plan ::a::xr.::::::::::::::::::::::::::::::::::::::::::::: ::::::::::f.:unt{ >:::::P.oJ~: ····· ······· # of Negative Qtrs 3.00 2.00 # of Positive Qtrs 9.00 10.00 Batting Average 41.67 58.33 WorstQtr -1.19 -1.54 Best Qtr 6.17 5.82 Range 7.36 7.36 Worst4 Qtrs 3.98 3.97 Standard Deviation 5.19 4.47 Beta 1.02 1.00 Annualized Alpha -0.15 0.00 R-Squared 0.78 1.00 Sharpe Ratio 0.98 1.15 Treynor Ratio 4.97 5.14 Tracking Error 2.42 0.00 Information Ratio -0.03 ::~o :vr::::::::::::::::::::::::::::::::::::::::::: :::::::<t.-u.n~t: :::::::::P.Oit:<iY.: # of Negative Qtrs 14.00 12.00 # of Positive Qtrs 26.00 28.00 Batting Average 45.00 55.00 WorstQtr -7.51 -8.45 Best Qtr 10.89 12.51 Range 18.40 20.96 Worst4 Qtrs -11.63 -12.21 Standard Deviation 7 .95 8.95 Beta 0.81 1.00 Annualized Alpha 0.18 0.00 R-Squared 0.84 . 1.00 Sharpe Ratio 0.38 0.39 Treynor Ratio 3.70 3.46 Tracking Error 3.58 0.00 Information Ratio -0.13 Risk Measures :::<:<:<:b.H{ ............ 1.00 -1.00 -16.66 0.35 0.35 0.00 0.01 0.72 0.02 -0.15 -0.22 -0.17 -0.17 2.42 :::::::::::\D.Iff 2.00 -2.00 -10.00 0.94 -1.62 -2.56 0.58 -1.00 -0.19 0.18 -0.16 -0.01 0.24 3.58 :~:)f ::::::::::::::::::::::::::::::::::::::::::: ::::::::)~~&f : :::}::~Y.: ·::::::::::::::D.if( # of Negative Qtrs 6.00 5.00 1.00 #of Positive Qtrs 14.00 15.00 -1.00 Batting Average 40.00 Worst Qtr -7.51 BestQtr Range Worst4 Qtrs Standard Deviation Beta Annualized Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio ::,ocept :::::::::::::::::::::::::::::::::::::::: # of Negative Qtrs # of Positive Qtrs Batting Average Worst Qtr Best Qtr Range Worst4 Qtrs Standard Deviation Beta Annualized Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 7.62 15.13 1.10 6.02 0.81 0.13 0.83 0.82 6.09 2.80 -0.38 ............ ::::::::Fuo.<r 15.00 36.00 39.22 -7.51 11.16 18.67 -11.63 7.71 0.80 0.18 0.82 0.64 6.17 3.68 -0.27 60.00 -20.00 -8.45 0.94 10.56 -2.94 19.01 -3.88 3.97 -2.87 6.78 -0.76 1.00 -0.19 0.00 0.13 1.00 -0.17 0.88 -0.06 5.98 0.11 0.00 2.80 ..... ... . ::::::::::::::oiff:: <<::PQ8Cy: 12.00 3.00 39.00 -3.00 60.78 -21.56 -8.45 0 .94 12.51 -1.35 20.96 -2.29 -12.21 0.58 8.66 -0.95 1.00 -0.20 0.00 0.18 1.00 -0.18 0.69 -0.05 5.94 0 .24 0.00 3.68 Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 1/1/2007 International added to Policy 27 I · I I I I I I I I I I I I I I I I I I 13.00% 12.00% 11.00% A 10.00% n n u a I 9.00% i z e d 8.00% R e t u r 7.00% n 6.00% ·s.OO% Palm Beach Gardens General Employees' General Employees Pension Plan Return vs Risk through June 30, 2007 *s&P soo - * Fun ~ * LB Gov/Corp 4 '00~.00Yo ~ I I I o 3 MoTBill 0 0 0 5.00Yo 10.00Yo 15.00Yo Risk (Annualized Std Dev) !-+Policy I Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 1/1/2007 International added to Policy 28 20.00% I I I I I I I I I I I I I I I I I I • 13.00% 12.00% 11.00% 10.00% R 9.00% e t 8.00% u 7.00% r n 6.00% s 5.00% 4.00% 3.00% Palm Beach Gardens General Employees' General Employees Pension Plan Return vs Risk through June 30, 2007 3 Years 5 Years 12.00% 0 11.00% *s&P 5J *s&P 5oo 10.00% 9.00% R 8.00% e t 7.00% Fund * und u r 6.00% n s 5.00% 4.00% *LB ~ov/Corp 3.00% * * ( oytcorp . 1 3 fVIo TBill 1 L~ I - 1.00% 3.00% 5.00% 7.00% 9.00% 0.00% 2.00% 4.00% 6.00% 8.00% Risk {Annualized Std Dev) 2·000t.oo% 5.00% 10.00% 15.00% 20.00% *3Mo TBill I I 8.00% 7.50% 7.00% 6.50% R e 6.00% t u 5.50% r n 5.00% s 4.50% 4.00% 10 Years "' S&P500 * und *LB Gm /Corp 3.50% P* "::1 ~•. -rto:n I I I ·5.otro/o 15.00% 0.00% 10.00% 20.00% Risk {Annualized Std Dev) 25.0 0% I-t-Policy Risk {Annualized Std Dev) Inception 13.00% 12.00% *s&P 5oo 11.00% 10.00% - R e 9.00% t *F und u 8.00% r n s 7.00% * Corp LB Gov/ 6.00% 5.00% ""' I I I 4·00 o/6.ooo..G MoS:BOO/o 10.00% 15.00% 20.00% Risk {Annualized Std Dev) Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate 1/1/20071ntemational added to Policy 29 I I I I I I I I I I I II :I ·I Palm Beach Gardens General Employees' General Employees Pension Plan Policy: First Objective: Second Objective: Universe Data: 09/30/1994-12/31/2005 0 110112006-12/3112006 0 110112007-06/30/2007 09/30/1994-06/30/2007 09/30/1994-06/30/2007 60.00 S&P 500 40.00 Lehman Gov/Credit Bond 60.00 S&P 500 40.00 Lehman Aggregate Bond 60.00 S&P 500 35.00 Lehman Aggregate Bond 5.00 MSCI EAFE Annual Return of8.00% 100.00 US Consumer Price Index + 4.00 annual adder 60% PLCC, 35% HQB & 5% International 09/30/1994-12/3112006 40.00 High Quality Bond 60.00 Pure Large Cap Core 01/0112007-06/30/2007 35.00 High Quality Bond 60.00 Pure Large Cap Core 5.00 International Equity 30 rl · •' • I I I I I I I I . I I I I I I I I I I Tran Trade Settle Code Date Date Bogdahn Consulting, LLC CONTRIBUTIONSIWITHDRA W ALS Palm Beach Garden General Employees' Combined Account From 04-01-07 To 06-30-07 Security Amount Quantity CONTRIBUTIONS ti 04-02-07 04-02-07 Cash 10,315.37 Transfer to cover benefit pynmt ti 04-02-07 04-02-07 Cash 6,876.92 Transfer in to cover benefit pymnt li 04-06-07 04-06-07 Cash 636.17 EE li 04-ll-07 04-ll-07 Cash 22,567.01 ER li 04-20-07 04-20-07 Cash 618.46 EE li 05-04-07 05-04-07 Cash 480.63 EE li 05-18-07 05-18-07 Cash 460.74 EE li 05-31-07 05-31-07 Cash 426.04 EE li 06-0l-07 06-0l-07 Cash 11,324.45 Transfer to cover monthly benefit pymnt li 06-01-07 06-01-07 Cash 7,549.64 Transfer to cover monthly benefit pynmt li 06-08-07 06-08-07 Cash 1,312.52 Transfer to cover invoice li 06-08-07 06-08-07 Cash 875 .01 Transfer to cover invoice li 06-15-07 06-15-07 Cash 412.55 EE li 06-18-07 06-18-07 Cash 425.17 Transfer to cover distribution li 06-18-07 06-18-07 Cash 283.44 Transfer to cover distribution li 06-29-07 06-29-07 Cash 1,023.07 EE li 06-29-07 06-29-07 Cash 22,567.01 ER li 06-29-07 . 06-29-07 Cash 14,154.05 Transfer from ac 80105108 ti 06-29-07 06-29-07 Cash 9,436.03 Transfer from ac 80105109 1ll,744.28 WITHDRAWALS 1o 04-02-07 04-02-07 Cash 16,645.20 Total Benefit Pymnt 1o 04-02-07 04-02-07 Cash 1,808.84 Federal W/H to 04-02-07 04-02-07 Cash 10,315.37 transferpd to acct 80105ll2 to 04-02-07 04-02-07 Cash 6,876.92 Transferpd to ac 80105112 lo 04-09-07 04-09-07 Cash 0.30 Market Fee Broker Code Commission I Bogdahn Consulting, LLC I CONTRIBUTIONS/WITHDRAWALS Palm Beach Garden General Employees' Combined Account I From 04-01-07 To 06-30-07 Tran Trade Settle Broker Code Date Date Security Amount Quantity Code Commission I lo 04-09-07 04-09-07 Cash 29.18 Market Fee PD lo 04-09-07 04-09-07 Cash 483.23 I Market Fee Pd lo 04-09-07 04-09-07 Cash 237.30 Market Fee pd lo 04-11-07 04-11-07 Cash 2,000.00 I COnsultant Fee BC 010107-033107 lo 04-11-07 04-11-07 Cash 1,011.18 Attorneys Fee CD lo 05-01-07 05-01-07 Cash 18,600.04 I Total Benefit Pymnt lo 05-01-07 05-01-07 Cash 1,954.38 FederalW/H lo 05-01-07 05-01-07 Cash 353.84 Foreign Tax W/H I lo 05-01-07 05-01-07 Cash 1.94 Foreign W/H Fee lo 05-11-07 05-11-07 Cash 229.43 Foreign Tax Wlh I lo 06-01-07 06-01-07 Cash 18,600.04 Various Benefit Pymnt lo 06-01-07 06-01-07 Cash 1,959.41 Federa1W/H I lo 06-01-07 06-01-07 Cash ll,324.45 Transferpd to ac 80105ll2 to 06-01-07 06-01-07 Cash 7,549.64 Transferpd to ac 80105ll2 lo 06-08-07 06-08-07 Cash 2,190.93 I Insurance pd to Gibson & Wirt 1o 06-08-07 06-08-07 Cash 348.47 Foreign Tax W/H 1o 06-08-07 06-08-07 Cash 12.90 I Foreign W/H Fee lo 06-08-07 06-08-07 Cash 1.94 Foreign W/H Fee lo 06-08-07 06-08-07 Cash 1,312.52 I Transferpd to ac 80105112 to 06-08-07 06-08-07 Cash 875.01 Transferpd to ac 80105112 lo 06-18-07 06-18-07 Cash 425.17 Transferpd to ac 80105112 I to 06-18-07 06-18-07 Cash 283.44 Transferpd to ac 80105112 lo 06-19-07 06-19-07 Cash 1,116.13 Retro Beneift Pymnt I lo 06-29-07 06-29-07 Cash 14,154.05 Transferpd to ac 80105108 lo 06-29-07 06-29-07 Cash 9,436.03 Transfer pd to ac 80 I 05109 I 130,137.28 I 2 I I · ... • I I I I I I I I I I I I I I I I I I Bogdahn Consulting, LLC CONTRIBUTIONS/WITHDRAWALS Palm Beach Garden General Employees' Combined Account From 04-01-07 To 06-30-07 Tran Trade Code Date Settle Date EXPENSE ACCOUNTS Security AFTER FEE PERFORMANCE EXPENSE ACCOUNTS dp 04-ll-07 04-ll-07 Administration Fee Investment Mgmnt Fee dp 04-18-07 04-18-07 Administration Fee Investment Mgmnt Fee PORTFOLIO NET TOTAL EXPENSE ACCOUNTS PAID BY CLIENT AFTER FEE PERFORMANCE EXPENSE ACCOUNTS PAID BY CLIENT GRAND TOTAL Amount 0.00 835.00 3,353.98 4,188.98 -22,581.98 0.00 0.00 -22,581.98 3 Quantity Broker Code Commission I ~ •• 'Ill I Bogdahn Consulting, LLC I PORTFOLIO APPRAISAL Palm Beach Garden General Employees' Combined Account I June 30, 2007 (Excluding Reinvested Divs.) Unit Total Market Pet. Quantity Security Cost Cost Price Value Gain/Loss Assets I DOMESTIC EQUITIES Common Stock Large Cap 1.9 1,400.000 AT&T Inc./ formally 33.80 47,322.94 41.50 58,100.00 10,777.06 I AT&TCotp 900.000 Anheuser-Busch Cos. 46.99 42,295.05 52.16 46,944.00 4,648.95 1.6 Inc. 520.000 BOEING CO COM 64.53 33,556.42 96.16 50,003.20 16,446.78 1.7 I 1,478.000 Cisco Sys, Inc COM 28.51 42,133.49 27.85 41,162.30 -971.19 1.4 624.000 Colgate Palmolive 64.86 40,471.83 64.85 40,466.40 -5.43 1.3 1,046.000 Dow Chemical Co.Com 45.81 47,921.97 44.22 46,254.12 -1,667.85 1.5 1,134.000 ECHOSTAR 36.37 41,246.19 43.37 49,181.58 7,935.39 1.6 I COMMNTNS NEW CL A 1,206.000 General Motors 33.60 40,517.74 37.80 45,586.80 5,069.06 1.5 Cotp.Com I 1,015.000 Heinz H J Company 42.21 42,842.34 47.47 48,182.05 5,339.71 1.6 1,345.000 Hewlett Packard Co 32.33 43,477.39 44.62 60,013.90 16,536.51 2.0 900.000 J.P. Morgan & Co. 46.98 42,277.77 48.45 43,605.00 1,327.23 1.4 510.000 Lockheed Martin Corp. 60.12 30,662.63 94.13 48,006.30 17,343.67 1.6 1,155.000 Loews Corp. 29.94 34,579.59 50.98 58,881.90 24,302.31 1.9 I 1,024.000 Macy's Inc 41.34 42,328.78 39.78 40,734.72 -1,594.06 1.3 1,075.000 PG&ECorp. 35.89 38,583.79 45.30 48,697.50 10,113.71 1.6 675.000 Praxair Inc. 62.52 42,200.80 71.99 48,593.25 6,392.45 1.6 1,720.000 Safeway Inc. COM 22.29 38,341.72 34.03 58,531.60 20,189.88 1.9 I 1,237.000 Tyco International Ltd 31.91 39,472.30 33.79 41,798.23 2,325.93 1.4 COM 730,232.73 874,742.85 144,510.12 28.9 I Mid Cap 1,034.000 Alliant Energy Cotp 38.94 40,259.72 38.85 40,170.90 -88.82 1.3 1,010.000 Century Telephone 45.69 46,145.89 49.05 49,540.50 3,394.61 1.6 Enterprises I 920.000 FISERV INC COM 43.76 40,259.57 56.80 52,256.00 11,996.43 1.7 970.000 Hemy Schein Inc. 45.52 44,158.09 53.43 51,827.10 7,669.01 1.7 944.000 International Flavors 52.24 49,313.24 52.14 49,220.16 -93.08 1.6 and Frag Inc. 1,170.000 McCormick & Co Inc 35.29 41,292.11 38.18 44,670.60 3,378.49 1.5 I 515.000 NYSE Euronext/ was 66.09 34,036.66 73.62 37,914.30 3,877.64 1.3 NYSE Group Inc. 1,192.000 P P & L RES INC COM 33.44 39,857.62 46.79 55,773.68 15,916.06 1.8 1,150.000 Price T Rowe Assoc Inc 33.76 38,819.00 51.89 59,673.50 20,854.50 2.0 I Com 284.000 Sears Holdings Corp 151.84 43,122.84 169.50 48,138.00 5,015.16 1.6 560.000 Simon PPTY Group Inc. 68.08 38,124.80 93.04 52,102.40 13,977.60 1.7 1,310.000 Stericyc1e Inc 31.72 41,554.44 44.46 58,242.60 16,688.16 1.9 I 974.000 Thermo Fisher Scientific 48.42 47,164.39 51.72 50,375.28 3,210.89 1.7 1,300.000 W endys Inti, Inc COM 34.02 44,229.51 36.75 47,775.00 3,545.49 1.6 588,337.88 697,680.02 109,342.14 23.1 I Small Cap 449.000 Precision Castparts 46.02 20,665.18 121.36 54,490.64 33,825.46 1.8 Cotp. I I I· •• • I Bogdahn Consulting, LLC I PORTFOLIO APPRAISAL Palm Beach Garden General Employees' Combined Account I June 30, 2007 (Excluding Reinvested Divs.) Unit Total Market Pet. I Quantity Security Cost Cost Price Value Gain/Loss Assets 1,445.000 VCA Antech Inc 28.86 41,707.04 37.69 54,462.05 12,755.01 1.8 62,372.22 108,952.69 46,580.47 3.6 1,380,942.83 1,681,375.56 300,432.73 55.6 I 1,380,942.83 1,681,375.56 300,432.73 55.6 INTERNATIONAL EQUITIES Global Funds I Foreign 195.000 !Shares MSCI Emerging 106.79 20,824.05 131.65 25,671.75 4,847.70 0.8 Markets 770.000 IS bares MSCI Japan 13.57 10,447.98 14.51 11,172.70 724.72 0.4 I Index Fund 172.000 ISbares MSCI Pacific 121.00 20,812.00 146.50 25,198.00 4,386.00 0.8 Ex-Japan 65.000 IShares S&P Latin 160.75 10,448.75 213.20 13,858.00 3,409.25 0.5 American40 I 580.000 Ishares MSCI EAFE 71.22 41,305.80 80.77 46,846.60 5,540.80 1.6 Index Fund 103,838.58 122,747.05 18,908.47 4.1 I 103,838.58 122,747.05 18,908.47 4.1 Foreign Stock Foreign 800.000 Bayer AG SA ADR 52.86 42,284.88 75.30 60,240.00 17,955.12 2.0 I 4,500.000 KONINKLUKE 10.34 46,514.25 12.52 56,340.00 9,825.75 1.9 AHOLDNVADR 1,520.000 Ryanair Holdings 27.61 41,969.63 37.75 57,380.00 15,410.37 1.9 PLC-SP ADR I 2,652.000 Volvo Aktiebolaget 8.13 21,560.34 19.89 52,748.28 31,187.94 1.7 ADRCLB 152,329.10 226,708.28 74,379.1 8 7.5 152,329.10 226,708.28 74,379.18 7.5 I 256,167.68 349,455.33 93,287.65 11.6 FIXED INCOME Corporate Bonds I 45,000 Merrill Lynch & Co. 103.41 46,536.30 100.43 45,193.41 -1,342.89 1.5 6.560% Due 12-16-07 25,000 Wells Fargo & Co 97.50 24,375.25 98.38 24,594.18 218.93 0.8 I 4.000% Due 08-15-08 25,000 ffiM 96.51 24,126.50 97.80 24,448.95 322.45 0.8 4.250% Due 09-15-09 25,000 American General 99.22 24,803.75 98.27 24,567.80 -235.95 0.8 I Finance Corp Note 4.875% Due 05-15-10 25,000 Abbott Laboratories 101.71 25,428.00 100.40 25,101.13 -326.88 0.8 5.600% Due 05-15-11 35,000 John Deere Cap Corp 100.10 35,036.05 100.52 35,181.83 145.78 1.2 I SerM1N 5.650% Due 07-25-11 I 2 I 14 C I • I Bogdahn Consulting, LLC I PORTFOLIO APPRAISAL Palm Beach Garden General Employees' Combined Account I June 30, 2007 (Excluding Reinvested Divs.) Unit Total Market Pet. I Quantity Security Cost Cost Price Value Gain/Loss Assets 25,000 Lehman Brothers 105.39 26,348.25 103.72 25,931.20 -417.05 0.9 Holdings 6.625% Due 01-18-12 I 20,000 J P Morgan Chase & Co 101.46 20,291.00 100.o3 20,005.18 -285.82 0.7 Sub Note 5.750% Due 01-02-13 40,000 Morgan Stanley 94.42 37,769.60 93.38 37,353.56 -416.04 1.2 4.750% Due 04-01-14 I 25,000 Goldman Sachs Group 94.23 23,558.50 95.02 23,755.98 197.48 0.8 Inc 5.125% Due 01-15-15 25,000 SunTrust Banks Inc. 102.50 25,625.00 101.98 25,495.30 -129.70 0.8 I 6.000% Due 01-15-28 40,000 First Union Corp 107.09 42,834.40 102.95 41,181.52 -1,652.88 1.4 6.180% Due 02-15-36 25,000 Lowes Companies Ser 120.20 30,051.00 111.29 27,822.60 -2,228.40 0.9 I MTNB 7.110% Due 05-15-37 386,783.60 380,632.62 -6,150.98 12.6 Accrued Interest 6,607.49 0.2 I 386,783.60 387,240.11 -6,150.98 12.8 CMO I 50,000 SeaRiber Maritime Fin 75.90 37,948.00 76.06 38,027.85 79.85 1.3 Hldgs. 12.000% Due 09-01-12 Accrued Interest 500.00 0.0 I 37,948.00 38,527.85 79.85 1.3 Government Bonds 40,000 FNMA 96.95 38,780.80 98.50 39,400.00 619.20 1.3 I 3.875% Due 08-15-08 25,000 US Treasury Note 99.73 24,931.64 99.59 24,898.45 -33.19 0.8 4.625% Due 11-30-08 50,000 FHILMC Series MTN 98.86 49,431.00 99.49 49,746.80 315.80 1.6 I 5.250% Due 02-24-11 50,000 FHLB 99.72 49,859.45 100.09 50,046.90 187.45 1.7 5.375% Due 06-14-13 50,000 US Treasury Note 95.89 47,945.32 94.88 47,441.40 -503.92 1.6 I 4.250% Due 08-15-15 40,000 Federal Home Loan Mtg 98.07 39,227.60 96.09 38,437.50 -790.10 1.3 Corp 5.200% Due 03-05-19 25,000 UNITED STATES 114.72 28,679.69 109.16 27,289.05 -1,390.64 0.9 I TREASBDS 6.000% Due 02-15-26 I I 3 I 14 . . " I I I I I I I I I I I I I I I I I I Bogdahn Consulting, LLC PORTFOLIO APPRAISAL Palm Beach Garden General Employees' Combined Account Quantity Security 25,000 Tennessee Valley Authority 5.880% Due04-01-36 Accrued Interest FHIMC 47,831 FHIMC Pool #J02621 5.000% Due 10-01-20 Accrued Interest FNMA 25,861 FNMA Pass Thru Pool #735036 5.500% Due 12-01-34 40,851 FNMA Pool #256060 6.000% Due 01-01-36 71,366 FNMA Pool #896494 6.000% Due 08-01-36 Accrued Interest CASH & EQUIV. Money Markets 75,152 Goldman Sachs Fin.Sq.Treasury Oblib. Admin TOTAL PORTFOLIO June 30, 2007 (Excluding Reinvested Divs.) Unit Total Cost Cost Price 111.11 27,778.00 104.07 306,633.50 306,633.50 98.86 47,285.74 96.72 47,285.74 99.25 25,666.60 96.82 101.39 41,419.57 99.10 100.14 71,466.27 98.99 138,552.44 138,552.44 917,203.28 1.00 75,151.95 1.00 75,151.95 75,151.95 2,629,465.74 4 Market Pet. Value Gain/Loss Assets 26,017.48 -1,760.53 0.9 303,277.58 -3,355.93 10.0 4,015.20 0.1 307,292.77 -3,355.93 10.2 46,260.84 -1,024.90 1.5 199.30 0.0 46,460.14 -1,024.90 1.5 25,037.79 -628.81 0.8 40,484.62 -934.95 1.3 70,642.09 -824.18 2.3 136,164.50 -2,387.94 4.5 679.61 0.0 136,844.11 -2,387.94 4.5 916,364.99 -12,839.89 30.3 75,151.95 0.00 2.5 75,151.95 ---=oc:..::.o~o 2.5 75,151.95 0.00 2.5 3,022,347.83 380,880.49 100.0