HomeMy WebLinkAboutAgenda General Pension 111907City 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 November 19, 2007 at 2:OOPM in
Council Chambers.
Old Business: Approval of 8/13/07 minutes
New Business:
Adjournment
Report from Bogdahn Consulting
Report from Scott Christiansen
Re- election of Officers
Approval of 2008 Meeting Dates
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.
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GENERAL EMPLOYEE PENSION BOARD
AUGUST 13, 2007
MINUTES
The General Employee Pension Fund convened on August 13, 2007 in the Council
Chambers of the Municipal Complex, located at 10500 North Military Trail, Palm Beach
Gardens, Florida. The meeting was called to order by Allan Owens at 2:05 P.M. A
quorum was declared.
1. Roll Call
Members Present: Allan Owens, Finance Administrator
Kenneth Steele
Jamie Smith
Dindial Laljie
Members Absent: Steve Parella, Chair
Additional Attendees: Andy Holtgrieve — Rockwood Capital Advisors
David West — Bogdahn Consulting
Scott Christiansen — Attorney
2. Old Business
• Approval of Minutes
— Motion was made and seconded to accept minutes from the May 14, 2007
meeting and approved unanimously 4 -0.
3. New Business
• Rockwood Capital Advisors second quarter report was presented by Andy
Holtgrieve. -
- Equity portfolio review.
— Account summary.
• Bogdahn Consulting second quarter report was presented by David West.
Fiscal year -to -date number missing from printed report — 10.75 %.
Discussion held on Russell small, medium and large cap investments.
Calendar year returns discussed.
Will wait to rebalance due to market conditions at this time.
• Scott Christiansen reported on the following items:
— Mrs. Murphy left the plan before the retirement age was lowered from age
65 to age 62. She will be eligible to draw a non - reduced benefit at age 65.
— Board members stated that their financial disclosure statements have been
submitted.
— Mr. Christiansen has not yet received the signed addendum for his
contract.
— Re- election of Board officers is required every two years and should be
placed on the next meeting agenda.
— Next meeting should be rescheduled due to a time conflict with the
Veterans Day holiday.
General Employee Pension Board
08.13.07
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— Mr. Christiansen requested that Allan Owens give an update on the
Trustee Composition Ordinance.
• Steve Parella, Chair, must fill out a final financial disclosure
statement if he leaves the City of Palm Beach Gardens. His
replacement on the Board is required.
• City wants to turn over administrative control of the general
employee defined benefit plan to the Florida League of Cities.
• Conversation ensued regarding the requirement to maintain a board
of trustees, which would include an attorney.
• The suggestion to meet twice a year is feasible, thus reducing
administrative costs. Special meetings could be called if necessary.
• Discussion ensued regarding investment management.
• Motion made, seconded and unanimously passed, 4-0, in favor of authorization
for Sam Martin's retirement benefit.
• Motion made, seconded and unanimously passed, 4 -0, in favor of authorization
for Doug West's retirement benefit.
• Approval of bills:
— Bogdahn Consulting second quarter statement, $1200.00. Motion made,
seconded and passed unanimously 4-0.
— Sawgrass Asset Management second quarter statement, $822.00. Motion
made, seconded and passed unanimously 4-0.
— Rockwood Capital Advisors second quarter statement, $3433.82. Motion
made, seconded and passed unanimously 4 -0.
— Christiansen and Dehner statement, $1033.73. Motion made, seconded and
passed unanimously 4 -0.
— Salem Trust second quarter statement, $750.00. Motion made, seconded
and passed unanimously 4 -0.
4. Adjournment:
With no further business to discuss the meeting adjourned at 3:19 P.M.
(The remainder of this page intentionally left blank)
General Employee Pension Board
08.13.07
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APPROVED:
Dindial Laljie
Allan Owens
Kenneth Steele
Jamie Smith
Attest:
Patricia Snider, CMC
City Clerk
NOTE: These action minutes are prepared in compliance with 286.011 F.S. and are not verbatim
transcripts of the meeting. A verbatim audio recording is available from the Office of the City
Clerk.
All referenced attachments on file in the City Clerk's office.
General Employee Pension Board
08.13.07
Page 3
BOGDAHN CLL C.
simplifying your investment decisions
City of Palm Beach Gardens
GENERAL EMPLOYEES
RETIREMENT SYSTEM
September, 2007
, lr4k� 1w
www.bogdahnconsulting.com
340 West Central Avenue Suite 300 ♦ Winter Haven, Florida 33880
Telephone (863) 293 -8289 ♦ Facsimile (863) 292 -8717
Performance Evaluation
for
Palm Beach Gardens
General Employees Pension Plan
Rockwood & Sawgrass
For the Period Ending
September 30, 2007
Presented
by:
Bogdahn Consulting, LLC
Palm Beach Gardens General Employees'
General Employees Pension Plan
Executive Summary Report Explanation
The Executive Summary provides an overview of the fund's performance. It shows the performance in dollars, percent, and
relative to the investment policy. These are provided over different time periods including up and down markets. All rates of
return are annualized if the period for which they are calculated exceeds one year.
Account Reconciliation: This section shows the performance of the account in dollars, during the most recent quarter, the
calendar year, and since the inception date. The Beginning Value is the value at the start of each period. The Ending Value
shows the value as of the date of the report. Net contributions are the total contributions less the total withdrawals during the
period. The Investment G/L is the gain or loss resulting from the investments. It is the difference between the beginning and
ending values that cannot be explained by the net contributions. Positive investment G/L figures represent a profit, and negative
values represent a loss.
Investment Policy: This section defines the benchmark against which the fund is being compared. Generally, this is the most
important objective for a fund to achieve. The performance of the fund relative to this measure over longer periods of time, such
as market cycles, is the strongest indicator of the success or failure of the investment strategy. This objective should be
reasonable, and the performance of the fund should be measured against the investment policy after adjusting for risk.
Trailing Returns: This section shows the cumulative time weighted returns over the last 1 year, 2 years, and so on up through
10 years if available, as well as since the inception date. A positive difference indicates the fund has exceeded the policy's
returns. The investor would prefer that this difference be positive for all time periods; however, it is more important for it to be
positive for the longer periods rather than the shorter periods.
Calendar Year Returns: This section gauges the consistency of performance over one year time periods. Each calendar year
of performance represents the return from January 1 st through December 31 st. Watch out for a trend of declining relative
performance in recent periods.
Returns In Up /Down Markets: This section shows how the fund performed in both up and down markets. The methodology is
to segregate the performance for each time period into the quarters in which the market, as defined by the policy, was positive
and negative. Quarters with negative policy returns are treated as down markets, and quarters with positive policy returns are
treated as up markets. Thus, in a 3 year or 12 quarter period, there might be 4 down quarters and 8 up quarters. Up market
returns are calculated for the fund and the policy based on the up quarters. Down market returns are calculated for the fund and
the policy based on the down quarters. The ratio of the fund's return in up markets to the policy's is the up market capture ratio.
The ratio of the fund's return in down markets to the policy's is the down market capture ratio. Ideally, the fund would have a
greater up market capture ratio than down market capture ratio.
Palm Beach Gardens General Employees'
General Employees Pension Plan
Executive Summary
Account Reconciliation
2007
Investment Policy
3 Yr
5 Yr
10 Yr
Incept
09/3012007
2007 09/30/1994
15.3
Qtr
YTD
2006
2005
2004
Qtr
YTD
Incept
2000
Index
1998
Fund 4.29
Weight
Beginning Value
3,022
2,906
1,079
S &P 500
0.84
5.74
60.00
Net Flows
-51
-125
-533
Lehman Aggregate Bond
8.25
18.76
35.00
Investment G/L
126
317
2,552
MSCI EAFE
3.66
-1.46
5.00
Ending Value
3,098
3,098
3,098
Total
-3.59
-10.08
100.00
Trailing Returns through September 30, 2007
09/30/1994
1 Yr
2 Yr 3 Yr
4 Yr
5 Yr
6 Yr 7 Yr 8 Yr
9 Yr
10 Yr
Incept
Fund 15.50
11.58 10.42
10.13
10.22
7.13 5.43 6.22
6.83
6.23
9.15
Policy 12.39
10.14 9.56
9.59
11.10
7.44 4.38 5.18
6.27
6.75
9.97
Diff 3.11
1.44 0.86
0.54
-0.88
-0.31 1.05 1.04
0.56
-0.52
-0.82
Calendar Year Returns
09/30/2007
2007
09/30/1994
3 Yr
5 Yr
10 Yr
Incept
Fund 137
14.1
15.3
Qtr
YTD
2006
2005
2004
2003
2002
2001
2000
1999
1998
Fund 4.29
11.22
9.66
3.98
8.33
14.87
-9.90
0.84
5.74
7.81
11.27
Policy 2.36
7.56
11.12
3.97
8.25
18.76
-9.53
-3.67
-0.92
11.40
21.351
Diff 1.93
3.66
-1.46
0.01
0.08
-3.89
-0.37
4.51
6.66
-3.59
-10.08
Returns in Up Markets Returns in Down Markets
Inception date is September 30, 1994
All dollar values are shown in thousands.
Returns for periods exceeding one year are annualized
Returns are net of fees.
09/30/1994
3 Yr
5 Yr
10 Yr
Incept
Fund 137
14.1
15.3
16.6
Policy 12.7
15.2
17.1
18.4
Ratio 107.9
92.6
89.7
90.1
Inception date is September 30, 1994
All dollar values are shown in thousands.
Returns for periods exceeding one year are annualized
Returns are net of fees.
Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
2
09/30/1994
3 Yr
5 Yr
10 Yr
Incept
Fund -2.3
-3.9
-12.3
-12.3
Policy -2.4
-3.9
-13.9
-13.9
Ratio 93.8
101.6
88.0
88.0
Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
2
Palm Beach Gardens
General Employees Pension Plan
Asset Allocation as of September 30, 2007
EqL
68'
At Market
Cash & Equiv
2%
Eq u it
63%
At Cost
Cash & Equiv
2%
xed Income
30%
Fixed Income
35%
Equity Limitations
65 @ Cost
3 70 @ Market
Palm Beach Gardens General Employees'
General Employees Pension Plan
Universe Comparison Report Explanation
The universe compares the fund's returns to a group of other investment portfolios, called a universe. Ideally the universe is
comprised of many other investment funds with similar investment profiles. Comparisons are provided over many different time
periods.
Trailing Returns: This section focuses on longer term returns. It shows the cumulative time weighted returns and percentile
rankings for the last 1 year, 2 years, 3 years, and so on up through 10 years if available. The returns for the fund, the policy
and the universe percentiles are displayed. A percentile ranking of 1 is the best, and 100 is the worst. For example, a ranking of
50 means that the fund outperformed half of the universe. A ranking of 25 means the fund was in the top 25% of the universe,
outperforming 75 %. Above 50 is acceptable. Above 25 is excellent. High rankings over all time periods are ideal; however, it is
more important to rank highly over the longer periods rather than the shorter periods.
Calendar Year Returns: This section focuses on shorter periods and gauges the consistency of performance over time. It
shows the calendar year returns for the fund, the investment policy and the universe percentiles. Each full year of performance
represents the return from January 1st through December 31st. Ideally the fund has performed well in the earlier years and in
the most recent years. Watch out for a trend toward underperformance in recent periods. Note the performance indifferent
market environments. A high policy return indicates a bull market, and a low policy return indicates a bear market.
All rates of return are annualized if the period for which theyare calculated exceeds one year.
4
Palm Beach Gardens General Employees'
General Employees Pension Plan
Universe Comparisons
60% PLCC, 35% HQB & 5% International
Trailing Returns through September 30, 2007
Calendar Year Returns
1 Yr
2 Yr
3 Yr
4 Yr
5 Yr
6 Yr
7 Yr
8 Yr
9 Yr
10 Yr
Fund
Return
15.50
11.58
10.42
10.13
10.22
7.13
5.43
6.22
6.83
6.23
% -tile
6
9
18
33
87
49
26
19
27
53
Policy
Return
12.39
10.14
9.56
9.59
11.10
7.44
4.38
5.18
6.27
6.75
% -tile
50
52
60
55
46
35
37
39
42
28
Universe
5th % -tile
15.56
12.00
11.32
11.48
12.57
8.57
7.81
7.69
8.04
7.84
25th % -tile
13.10
10.52
10.22
10.37
11.59
7.75
5.54
5.80
6.94
6.84
50th % -tile
12.37
10.16
9.71
9.65
11.00
7.12
4.02
4.89
6.08
6.24
75th % -tile
11.58
9.72
9.34
9.21
10.52
6.75
3.53
4.50
5.64
5.86
95th % -tile
9.16
8.44
8.00
8.02
9.49
5.72
1.76
3.38
4.83
4.49
Calendar Year Returns
T 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 September 30, 2007
Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
5
Qtr
YTD
2006
2005
2004
2003
2002
1 2001
1 2000
1999
Fund
Return
4.29
11.22
9.66
3.98
8.33
14.87
-9.90
0.84
5.74
7.81
% -tile
8
6
84
60
44
99
66
16
21
67
Policy
Return
2.36
7.56
11.12
3.97
8.25
18.76
-9.53
-3.67
-0.92
11.40
% -tile
29
44
53
60
47
49
58
50
57
55
Universe
5th % -tile
4.67
11.39
14.84
6.59
11.65
22.05
-4.50
3.72
15.03
24.69
25th % -tile
2.43
8.08
12.56
5.07
9.25
19.89
-8.05
-1.05
4.15
13.43
50th % -tile
2.05
7.44
11.15
4.19
8.17
18.73
-9.25
-3.68
-0.65
11.73
75th % -tile
1.15
6.58
10.40
3.63
7.20
17.88
-10.48
-4.58
-1.82
4.20
95th % -tile
-0.05
4.48
6.61
2.86
4.86
15.78
-12.45
-8.68
-4.35
-0.56
T 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 September 30, 2007
Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
5
Palm Beach Gardens General Employees'
Total Fixed Income
Executive Summary
Account Reconciliation
Trailing Returns through September 30, 2007
Investment Policy
Index Weight
Lehman Aggregate Bond 100.00
Total 100.00
09/30/2007
2007
09/30/1994
3 Yr
Qtr
YTD
Incept
Beginning Value
940
949
453
Net Flows
-31
-50
-178
Investment G/L
24
34
658
Ending Value
934
934
934
Trailing Returns through September 30, 2007
Investment Policy
Index Weight
Lehman Aggregate Bond 100.00
Total 100.00
Calendar Year Returns
09/30/2007
2007
09/30/1994
3 Yr
5 Yr
10 Yr
Incept
Fund 7.4
7.9
09/30/1994
1 Yr
2 Yr
3 Yr
4 Yr
5 Yr
6 Yr
7 Yr
8 Yr
9 Yr
10 Yr
Incept
Fund 4.55
4.53
3.65
3.25
3.51
4.07
5.42
5.07
4.29
5.11
5.92
Policy 5.13
4.39
3.78
3.67
4.23
5.05
6.17
6.24
5.33
6.06
6.82
Diff -0.58
0.14
-0.13
-0.42
-0.72
-0.98
-0.75
-1.17
-1.04
-0.95
-0.90
Calendar Year Returns
09/30/2007
2007
09/30/1994
3 Yr
5 Yr
10 Yr
Incept
Fund 7.4
7.9
8.7
Qtr
YTD
2006
2005
2004
2003
2002
2001
2000
1999
1998
Fund 2.60
3.71
3.84
2.65
3.16
2.83
9.23
9.24
6.50
-1.37
8.99
Policy 2.85
3.84
4.33
2.34
4.21
4.68
11.02
8.51
11.84
-2.15
9.47
Diff -0.25
-0.13
-0.49
0.31
-1.05
-1.85
-1.79
0.73
-5.34
0.78
-0.48
Keturns In up marKecs
Inception date is September 30, 1994
All dollar values are shown in thousands.
Returns for periods exceeding one year are annualized.
Returns are net of fees.
Returns in Down Markets
09/30/1994
3 Yr
5 Yr
10 Yr
Incept
Fund 7.4
7.9
8.7
9.5
Policy 8.3
9.6
10.3
11.0
Ratio 88.9
82.6
84.6
86.8
Inception date is September 30, 1994
All dollar values are shown in thousands.
Returns for periods exceeding one year are annualized.
Returns are net of fees.
Returns in Down Markets
Sawgrass assumed fixed- 10 -26 -05 $1,043,932.60 - Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate
6
09/30/1994
3 Yr
5 Yr
10 Yr
Incept
Fund -1.4
-2.7
-2.9
-3.3
Policy -2.3
-3.3
-3.2
-3.7
Ratio 61.7
83.8
88.5
89.1
Sawgrass assumed fixed- 10 -26 -05 $1,043,932.60 - Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate
6
Palm
Beach Gardens
General Employees'
1
Fixed Income & Cash - Sawgrass
Incept
i
Executive Summary
Fund -0.1
Account Reconciliation
Investment Policy
Policy -0.5
-1.2
Ratio 23.1
35.5
09/30/2007 2007 10/26/2005
Qtr YTD Incept
Index
Weight
Beginning Value
940 949 1,044
Lehman Aggregate Bond
100.00
Net Flows
-31 -50 -198
1
Investment G/L
24 34 88
Ending Value
934 934 934
Total
100.00
' Trailing Returns through September 30, 2007
10/26/2005
'
1 Yr 2 Yr
3 Yr 4 Yr 5 Yr
6 Yr 7 Yr 8 Yr 9 Yr 10 Yr
Incept
Fund 4.55
4.71
Policy 5.13
4.95
Diff -0.58
-0.24
1 Calendar Year Returns
IReturns in U P Markets Returns in Down Markets
Inception date is October 26, 2005
All dollar values are shown in thousands.
Returns for periods exceeding one year are annualized.
Returns are net of fees.
Index change effective 111/2006 from LB Gov /Credit to LB Aggregate
7
10/26/2005
1 Yr
Incept
Fund -0.1
-0.4
Policy -0.5
-1.2
Ratio 23.1
35.5
Inception date is October 26, 2005
All dollar values are shown in thousands.
Returns for periods exceeding one year are annualized.
Returns are net of fees.
Index change effective 111/2006 from LB Gov /Credit to LB Aggregate
7
Palm Beach Gardens General
Employees'
1
09/30/1994
Total
Equity
3 Yr
5 Yr
10 Yr
Incept
Executive Summary
Fund -3.5
Account Reconciliation
-22.1
-21.4
Investment Policy
Policy -3.6
09/30/2007
2007
09/30/1994
Ratio 97.5
110.4
83.7
Qtr
YTD
Incept
Index
Weight
Beginning Value 2,082
1,932
622
S &P 500
95.00
Net Flows -43
-74
-379
MSCI EAFE
5.00
Investment G/L 103
283
1,898
Ending Value 2,141
2,141
2,141
Total
100.00
Trailing Returns through September 30, 2007
09/30/1994
'
1 Yr 2 Yr 3 Yr
4 Yr
5 Yr
6 Yr 7 Yr
8 Yr 9 Yr 10 Yr
Incept
-
Fund 21.14 15.29 14.20
13.97
14.19
8.55 4.88
6.50 8.00 6.55
10.78
Policy 16.68 13.70 13.21
13.38
15.50
8.53 2.63
3.91 6.32 6.59
11.57
Diff 4.46 1.59 0.99
0.59
-1.31
0.02 2.25
2.59 1.68 -0.04
-0.79
' Calendar Year Returns
Returns in Up Markets Returns in Down Markets
I
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 11/912006, will be added to Policy 11112007
1
09/30/1994
3 Yr
5 Yr
10 Yr
Incept
Fund -3.5
-9.2
-22.1
-21.4
Policy -3.6
-8.3
-26.3
-24.7
Ratio 97.5
110.4
83.7
86.8
I
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 11/912006, will be added to Policy 11112007
1
Palm Beach Gardens General Employees'
Total Equity
Universe Comparisons
95% Pure Large Cap Core & 5% International
Trailina Returns through September 30, 2007
Calendar Year Returns
1 Yr
2 Yr
3 Yr
4 Yr
5 Yr
6 Yr
7 Yr
8 Yr
9 Yr
10 Yr
Fund
Return
21.14
15.29
14.20
13.97
14.19
8.55
4.88
6.50
8.00
6.55
% -tile
8
10
22
34
89
37
26
24
21
39
Policy
Return
16.68
13.70
13.21
13.38
15.50
8.53
2.63
3.91
6.32
6.59
% -tile
40
37
49
44
42
38
47
55
50
38
Universe
5th % -tile
21.91
16.44
16.25
16.58
17.42
10.64
8.97
8.80
9.75
8.90
25th % -tile
17.33
13.97
14.05
14.37
16.17
9.45
4.88
6.14
7.58
6.94
50th % -tile
16.47
13.56
13.19
13.29
15.38
8.37
2.53
4.06
6.30
6.39
75th % -tile
15.30
13.05
12.72
12.79
14.83
7.92
2.15
3.53
5.88
5.99
95th % -tile
11.34
11.19
10.69
10.61
12.99
6.50
0.05
1.65
4.78
4.20
Calendar Year Returns
Returns are in percent. "% -tile" is the percentile ranking within the universe.
Returns for periods exceeding one year are annualized.
Incept is September 30, 1994 to September 30, 2007
Rockwood assumed account 10 -26 -05 $ 1,565,898.88 International bought 11/9/2006, will be added to Policy 1/1/2007
P*
Qtr
YTD
2006
2005
2004
2003
2002
2001
2000
1999
Fund
Return
5.04
14.93
12.95
4.52
11.44
22.83
-21.03
-4.42
5.29
14.26
% -tile
7
5
90
71
35
96
35
19
25
69
Policy
Return
2.04
9.36
15.80
4.91
10.88
28.68
-22.10
-11.88
-9.11
21.04
% -tile
30
40
36
52
40
34
48
44
59
27
Universe
5th % -tile
5.39
14.89
21.46
9.58
16.36
31.49
-13.58
1.29
19.02
40.98
25th % -tile
2.11
9.78
17.16
6.53
12.56
29.39
-20.00
-6.64
4.73
21.12
50th % -tile
1.79
9.20
15.55
4.94
10.70
28.18
-22.20
-12.04
-7.36
20.26
75th % -tile
0.41
7.92
14.97
4.41
10.10
26.79
-22.64
-12.38
-9.46
9.86
95th % -tile
-1.62
4.77
9.55
3.17
5.63
22.93
-26.51
-15.76
-14.13
-0.40
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 September 30, 2007
Rockwood assumed account 10 -26 -05 $ 1,565,898.88 International bought 11/9/2006, will be added to Policy 1/1/2007
P*
Palm Beach Gardens General Employees'
Domestic Equity & Cash - Rockwood
Executive Summary
Account Reconciliation
I ranmg meturn5 inrougn aepteinulri au, cVUi
invesimeni roncy
Index Weight
S &P 500 100.00
Total 100.00
10/26/2005
1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept
Fund 20.51 18.081
Policy 16.44 14.941
Diff 4.07 3.14
Calendar Year Returns
09/30/2007 2007
Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998
Fund 4.85 14.48 12.81
Policy 2.03 9.13 15.80
Diff 2.82 5.35 -2.99
r,t:LUI ns In up IVIdl KCW
09/30/2007
Qtr
2007
YTD
10/26/2005
Incept
Beginning Value
1,957
1,821
1,566
Net Flows
-43
-74
-139
Investment G/L
93
259
579
Ending Value
2,006
2,006
2,006
I ranmg meturn5 inrougn aepteinulri au, cVUi
invesimeni roncy
Index Weight
S &P 500 100.00
Total 100.00
10/26/2005
1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept
Fund 20.51 18.081
Policy 16.44 14.941
Diff 4.07 3.14
Calendar Year Returns
09/30/2007 2007
Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998
Fund 4.85 14.48 12.81
Policy 2.03 9.13 15.80
Diff 2.82 5.35 -2.99
r,t:LUI ns In up IVIdl KCW
Inception date is October 26, 2005
All dollar values are shown in thousands.
Returns for periods exceeding one year are annualized.
Returns are net of fees.
10
Returns in Down Markets
10/26/2005
1 Yr Incept
Fund -1.8
Policy -1.4
Ratio 125.0
10/26/2005
1 Yr
Incept
Fund 20.5
22.41
Policy 16.4
18.4
Ratio 124.8
121.7
Inception date is October 26, 2005
All dollar values are shown in thousands.
Returns for periods exceeding one year are annualized.
Returns are net of fees.
10
Returns in Down Markets
10/26/2005
1 Yr Incept
Fund -1.8
Policy -1.4
Ratio 125.0
Palm Beach Gardens General Employees'
Domestic Equity & Cash - Rockwood
Universe Comparisons
Pure Large Cap Core
Trailing Returns through September 30, 2007
Calendar Year Returns
7-
2 Qtrs
3 Qtrs
1 Yr
2 Yr
3 Yr
4 Yr
5 Yr
6 Yr
7 Yr
8 Yr
Fund
Return
7.76
14.48
20.51
% -tile
63
7
9
Policy
Return
8.44
9.13
16.44
% -tile
28
32
38
Universe
5th % -tile
13.67
15.22
21.93
16.25
16.11
16.16
17.34
10.52
8.91
8.65
25th % -tile
8.45
9.36
17.01
13.65
13.81
14.15
15.98
9.42
5.02
5.91
50th % -tile
8.19
8.93
16.16
13.37
13.04
13.16
15.24
8.31
2.46
3.94
75th % -tile
7.04
7.95
15.17
12.82
12.55
12.70
14.74
7.89
2.11
3.43
95th % -tile
3.88
3.98
10.34
10.85
10.57
10.39
12.66
6.56
0.30
1.10
Calendar Year Returns
7-
Qtr
YTD
1 2006
2005
2004
2003
2002
2001
2000
1999
Fund
Return
4.85
14.48
12.81
% -tile
7
7
75
Policy
Return
2.03
9.13
15.80
% -tile
25
32
30
Universe
5th % -tile
5.55
15.22
20.97
11.33
15.14
33.34
-15.55
-1.49
13.61
35.03
25th % -tile
2.03
9.36
16.19
7.20
11.51
28.99
-20.13
-9.35
-0.20
22.80
50th % -tile
1.88
8.93
15.48
5.09
10.39
27.83
-22.23
-12.08
-7.39
20.27
75th % -tile
0.55
7.95
12.74
4.22
8.38
24.97
-23.39
-13.51
-9.63
16.39
95th % -tile
-1.82
3.98
4.79
1.07
5.14
20.58
-26.60
-19.10
-14,67
6.13
Returns are in percent. "% -tile" is the percentile ranking within the universe.
Returns for periods exceeding one year are annualized.
Incept is October 26, 2005 to September 30, 2007
11
Palm Beach Gardens General Employees'
International Equity
Executive Summary
Account Reconciliation
Trailing Returns through September 3U, ZUU1
Investment Policy
Index Weight
MSCI EAFE 100.00
Total 100.00
11/07/2006
1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept
Fund 30.25
Policy 19.85
Diff 10.40
Calendar Year Returns
09/30/2007 2007
Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998
Fund 7.96 22.12
Policy 2.23 13.57
Diff 5.73 8.55
Returns in Up Markets
11/07/2006
Incept
Fund 30.2
Policy 19.9
Ratio 152.4
Inception date is November 7, 2006
All dollar values are shown in thousands.
Returns for periods exceeding one year are annualized.
Returns are net of fees.
12
Returns in Down Markets
Fund
Policy
Ratio
11/07/2006
Incept
09/30/2007
2007
11/07/2006
Qtr
YTD
Incept
Beginning Value
125
111
104
Net Flows
0
0
0
Investment G/L
10
25
31
Ending Value
135
135
135
Trailing Returns through September 3U, ZUU1
Investment Policy
Index Weight
MSCI EAFE 100.00
Total 100.00
11/07/2006
1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept
Fund 30.25
Policy 19.85
Diff 10.40
Calendar Year Returns
09/30/2007 2007
Qtr YTD 2006 2005 2004 2003 2002 2001 2000 1999 1998
Fund 7.96 22.12
Policy 2.23 13.57
Diff 5.73 8.55
Returns in Up Markets
11/07/2006
Incept
Fund 30.2
Policy 19.9
Ratio 152.4
Inception date is November 7, 2006
All dollar values are shown in thousands.
Returns for periods exceeding one year are annualized.
Returns are net of fees.
12
Returns in Down Markets
Fund
Policy
Ratio
11/07/2006
Incept
Palm Beach Gardens General Employees'
International Equity
Universe Comparisons
International Equity
Trailing Returns through September 30, 2007
Calendar Year Returns
2 Qtrs
3 Qtrs
1 Yr
2 Yr
3 Yr
4 Yr
5 Yr
6 Yr
7 Yr
8 Yr
Fund
Return
17.22
22.12
% -tile
11
10
Policy
Return
9.05
13.57
% -tile
61
57
Universe
5th % -tile
19.39
26.10
45.57
34.68
37.37
34.28
33.32
31.28
20.05
18.36
25th % -tile
13.13
17.38
31.15
24.72
25.88
24.86
25.91
19.82
11.27
12.37
50th % -tile
10.06
14.17
26.18
22.54
23.49
22.87
23.61
16.40
8.60
8.86
75th % -tile
7.75
11.64
23.56
20.36
21.48
21.09
21.34
14.71
6.26
7.16
95th % -tile
4.41
8.54
18.63
17.23
18.84
18.86
18.86
12.40
3.24
4.81
Calendar Year Returns
Returns are in peroent. "% -tile" is the peroentile ranking within the universe.
Returns for periods exceeding one year are annualized.
Incept is November 7, 2006 to September 30, 2007
13
Qtr
YTD
2006
2005
2004
2003
1 2002
2001
2000
1999
Fund
Return
7.96
22.12
% -tile
9
10
Policy
Return
2.23
13.57
% -tile
54
57
Universe
5th % -tile
9.77
26.10
35.29
38.92
32.32
65.72
1.261
2.71
2.11
117.71
25th % -tile
4.50
17.38
28.37
23.76
23.60
48.59
-8.48
-10.53
-8.63
67.62
150th % -tile
2.45
14.17
25.65
16.31
19.34
38.92
-14.41
-18.53
-15.84
47.72
75th % -tile
1.09
11.64
22.79
13.13
16.57
33.20
-18.10
-23.29
-24.08
29.01
95th % -tile
-1.14
8.54
18.65
9.40
12.66
27.55
-23.32
-29.32
-34.43
17.12
Returns are in peroent. "% -tile" is the peroentile ranking within the universe.
Returns for periods exceeding one year are annualized.
Incept is November 7, 2006 to September 30, 2007
13
Palm Beach Gardens General
Employees'
General Employees Pension
Plan
Up Market Returns
o
25.00 /o
20.00%
15.00%
- -- - -
10.00%
5.00%
-
0.00%
'
3 Yr
5 Yr
10 Yr
Incept
Fund ( %)
13.67
14.07
15.31
16.55
Policy ( %)
12.67
15.19
17.07
18.37
Difference ( %)
1.00
-1.12
-1.76
-1.82
Ratio
107.89
92.63
89.69
90.09
# Up Qtrs
10.00
16.00
28.00
40.00
Down Market Returns
- 5.00%
-
'
- 10.00%
- -
'
- 15.00%
3 Yr
5 Yr
10 Yr
Incept
Fund ( %)
-2.26
-3.92
-12.27
-12.27
'
Policy ( %)
-2.41
-3.86
-13.94
-13.94
Difference ( %)
0.15
-0.06
1.67
1.67
Ratio
93.78
101.55
88.02
88.02
# Down Qtrs
2.00
4.00
12.00
12.00
® Fund ( %) Policy ( %)
' Index change effective 1/1/06 from
LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
'
14
V
a
I
u
e
Palm Beach Gardens General Employees'
General Employees Pension Plan
Objective Comparison
Quarter Ending
❑ Fund Policy
—$ Nominal 8% $ CPI + 4%
Inception date is September 30, 1994
All dollar values are shown in thousands.
Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
15
Palm Beach Gardens General Employees'
General Employees Pension Plan
Attributions of Returns Report Explanation
Performance attribution concentrates on evaluating the effect of the manager's decisions on asset allocation and security
selection. This allows the investor to see whether the manager is adding value by adjusting the actual asset allocation or by
picking individual securities. This information is valuable in helping determine the amount of freedom that might be given to the
manager in regard to asset allocation ranges. The result of these skills are shown for multiple time periods.
The top section shows the returns for both the account and the investment policy and the results of the manager's contribution.
The fund's return is thus attributed to the policy and the manager.
The bottom section divides the manager's contribution into two components: asset allocation and security selection. The asset
allocation effect measures the value that was added by varying the actual asset allocation from the target allocation. This is
done by assuming investments, in amounts equal to the actual asset allocation weights, were made in the policy's indices so
that security selection has no effect. The difference between this return and the policy's return is the asset allocation effect. The
security selection is the remainder of the manager's contribution that is not explained by asset allocation.
16
Palm Beach Gardens General Employees'
General Employees Pension Plan
Attribution of Returns
Attribution of Performance to show Manager Contribution
IPolicy + Manager Contribution = Fund
Attribution of Manager Contribution between Asset Allocation and Security Selection
Policy
Manager Contribution
Fund
Current Quarter
2.36
1.93
4.29
Year to Date
7.56
3.66
11.22
3 Years
9.56
0.86
10.42
5 Years
11.10
-0.88
10.22
10 Years
6.75
-0.52
6.23
Incept
9.97
-0.82
9.15
IPolicy + Manager Contribution = Fund
Attribution of Manager Contribution between Asset Allocation and Security Selection
Asset Allocation + Security Selection = Manager Contribution
' Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
' 17
Asset Allocation
Security Selection
Manager Contribution
Current Quarter
-1.22
3.15
1.93
Year to Date
-3.53
7.19
3.66
3 Years
-4.15
5.01
0.86
5 Years
-4.84
3.96
-0.88
10 Years
-3.09
2.57
-0.52
Incept
-4.42
3.60
-0.82
Asset Allocation + Security Selection = Manager Contribution
' Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
' 17
' Palm Beach Gardens General Employees'
General Employees Pension Plan
Asset Allocation Effect
0
UUZ MUJ JUJ Sus UU;i Mu4 Ju4 604 U04 M05 J05 S05 D05 M06 J06 S06 D06 M07 J07 S07
Quarter Ending
Security Selection Effect
' 10 oo °i
10.00%
P
5.00%
e
r
c
e
n
t
0.00%
'
E
f
f
�
- 5.00%
C
t
'
- 10.00%
UUZ MUJ JUJ Sus UU;i Mu4 Ju4 604 U04 M05 J05 S05 D05 M06 J06 S06 D06 M07 J07 S07
Quarter Ending
Security Selection Effect
' 10 oo °i
Quarter Ending
' Quarterly Effect - — Cumulative Effect
Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
' 18
o
P
5.00%
r
r
c
e
n
'
t
0.00%
E
f
f
e
- 5.00%
C
' t
'
- 10.00%
Quarter Ending
' Quarterly Effect - — Cumulative Effect
Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
' 18
Palm Beach Gardens General Employees'
General Employees Pension Plan
Asset Allocation vs Targets
80.00 °i
70.00 ° /
-
60.00 °/
50.00 ° /
- -
40.00 ° /
30.00 ° /
-
-
20.00%--
10.00 %
-
' 0.00%
2
3 it St -D t3 J 4 4 U64 M05 J65 S 5 D 5 6 J66 S'66 D 6 Mb7 J S
Quarter Ending
Cash & Equiv —X- Target
80.00 %
' 70.00 %
- -- ------
60.00°/
-
50.00 ° /
- - - -
'
40.00%
-
30.000/c-
20.00%
-
-
10.00 %
- -
' 0.00%
D02
M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 J06 S06 D06 M07 J07 S07
Quarter Ending
'
� Equity � Target
80.00°/
70.00 %
'
60.00 %
50.00%
' 40.00 %
30.00%-
20.00 ° /
-
10.00%
-
'0.00%- D02
M03 J03 S03 D03 M04 J04 SO4 D04 M05 J05 S05 D05 M06 J06 S06 D06 M07 J07 S07
Quarter Ending
❑ Fixed Income ->K— Target
'
Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
I
19
Palm Beach Gardens General Employees'
General Employees Pension Plan
Asset Allocation vs Targets
70.00%---
60.00% -
50.00°i
40.00%---
30.00 % -
20.00%---
10.00% - -- - - --
0.00% 2 3 J S 3 3 J S D 5 J 5 S 5 5 6 J S 6 7 J S07
Quarter Ending
Foreign Fnds -X- Target
Index change effective 111106 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
20
10.00%
5.00%
R
e
t 0.00%
u
r
n
-5.00%
- 10.00%
$
$
$
$
v$
a
I
u $
e
$
$
Palm Beach Gardens General Employees'
General Employees Pension Plan
Manager Contribution
02 M03 J03 S03 D03 M04 J04 504 D04 M05 J05 505 DU5 MU6 JUb SUb DUb MU/ JUI Sc
Quarter Ending
Quarterly -- Cumulative
Growth of $100 Fund vs Policy
JVL "VL IVIVJ JVJ ✓vim I.- vvv vvv vvv ...vv v.... --- ...v. - .....
Quarter Ending
Fund -E�- Policy
Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
21
Palm Beach Gardens General Employees'
General Employees Pension Plan
Quarterly Comparison Analysis ($)
Period
Fund
Policy
Diff
Nominal 8%
Diff
CPI + 4%
Diff
End ng
Sep 1994
1,079
1,079
0
1,079
0
1,079
0
Dec 1994
1,059
1,078
-20
1,098
-39
1,090
-31
Mar 1995
1,211
1,240
-29
1,194
17
1,188
23
Jun 1995
1,369
1,421
-51
1,294
75
1,286
84
Sep 1995
1,432
1,495
-63
1,316
116
1,301
131
Dec 1995
1,533
1,600
-67
1,365
168
1,338
195
Mar 1996
1,634
1,697
-62
1,452
182
1,431
203
Jun 1996
1,688
1,752
-64
1,486
202
1,461
227
Sep 1996
1,728
1,800
-72
1,518
210
1,488
240
Dec 1996
1,820
1,916
-96
1,551
270
1,514
306
Mar 1997
1,927
2,045
-118
1,685
242
1,647
280
Jun 1997
2,141
2,284
-144
1,717
424
1,664
477
Sep 1997
2,328
2,423
-94
1,752
576
1,691
637
Dec 1997
2,375
2,530
-155
1,820
556
1,741
635
Mar 1998
2,568
2,756
-188
1,856
712
1,769
799
Jun 1998
2,550
2,842
-291
1,893
657
1,797
753
Sep 1998
2,385
2,730
-345
1,928
456
1,818
566
Dec 1998
2,679
3,106
-427
2,001
678
1,874
805
Mar 1999
2,642
3,168
-526
2,025
617
1,888
753
Jun 1999
2,790
3,256
-466
2,033
757
1,890
900
Sep 1999
2,647
3,131
-484
2,063
584
1,917
730
Dec 1999
2,821
3,391
-570
2,095
726
1,934
887
Mar2000
2,907
3,490
-583
2,149
758
1,999
907
Jun 2000
2,843
3,432
-589
2,167
675
2,010
833
Sep 2000
2,926
3,436
-510
2,192
734
2,027
899
Dec 2000
2,945
3,324
-380
2,225
719
2,042
903
Mar 2001
2,846
3,104
-258
2,243
603
2,061
785
Jun 2001
2,927
3,183
-256
2,251
676
2,068
859
Sep 2001
2,675
2,893
-218
2,229
446
2,028
648
Dec 2001
2,827
3,062
-234
2,256
571
2,013
814
Mar 2002
2,824
3,046
-222
2,283
541
2,040
783
Jun 2002
1 2,621
2,805
-184
2,290
331
2,038
583
Sep 2002
2,397
2,540
-144
2,305
92
2,041
356
Dec 2002
2,434
2,655
-221
2,313
121
2,024
410
Mar 2003
2,385
2,609
-224
2,345
41
2,068
318
Jun 2003
2,534
2,852
-317
2,358
176
2,050
484
Sep 2003
2,533
2,861
-329
2,373
160
2,056
477
Dec 2003
2,680
3,036
-356
2,388
292
2,035
645
All dollar values are shown in thousands.
Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
22
1
Palm Beach Gardens General Employees'
General Employees Pension Plan
Quarterly Comparison Analysis ($)
Period
Fund
Policy
Diff
Nominal 8%
Diff
CPI + 4%
Diff
End ng
Mar 2004
2,741
3,094
-352
2,424
317
2,077
664
Jun 2004
2,717
3,068
-351
2,453
263
2,105
611
Sep 2004
2,674
3,045
-371
2,469
205
2,096
578
Dec 2004
2,805
3,188
-383
2,483
321
2,088
717
Mar 2005
2,745
3,112
-367
2,504
240
2,115
630
Jun 2005
2,717
3,117
-400
2,490
228
2,087
630
Sep 2005
2,740
3,148
-408
2,513
227
2,129
611
Dec 2005
2,779
3,177
-398
2,541
238
2,109
671
Mar 2006
2,812
3,206
-394
2,549
264
2,121
691
Jun 2006
2,765
3,162
-396
2,581
184
2,159
606
Sep 2006
2,834
3,276
-442
2,591
242
2,141
692
Dec 2006
2,906
3,386
-481
2,605
300
2,116
790
Mar 2007
2,979
3,369
-390
2,599
380
2,116
863
Jun 2007
1 3,022
3,482
-459
2,631 1
391
2,148
875
Sep 2007
1 3,098
3,511
-413
2,6301
468
2,124 1
974
1 All dollar values are shown in thousands.
' Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
23
Palm Beach Gardens General Employees'
General Employees Pension Plan
Quarterly Comparison Analysis ( %)
Period
Fund
Policy
Diff
Nominal 8%
Diff
CPI + 4%
Diff
Ending
Dec 1994
-1.67
0.16
-1.83
1.94
-3.61
1.22
-2.89
Mar 1995
7.15
7.82
-0.67
1.94
5.21
2.12
5.03
Jun 1995
6.68
8.32
-1.64
1.94
4.74
1.71
4.97
Sep 1995
4.85
5.52
-0.67
1.94
2.91
1.45
3.40
Dec 1995
5.46
5.49
-0.03
1.94
3.52
1.08
4.38
Mar 1996
2.64
2.24
0.40
1.94
0.70
2.39
0.25
Jun 1996
2.91
2.88
0.03
1.94
0.97
1.69
1.22
Sep 1996
2.22
2.61
-0.39
1.94
0.28
1.69
0.53
Dec 1996
5.12
6.23
-1.11
1.94
3.18
1.49
3.63
Mar 1997
0.17
1.30
-1.13
1.94
-1.77
1.89
-1.72
Jun 1997
11.16
11.79
-0.63
1.94
9.22
1.09
10.07
Sep 1997
8.66
5.95
2.71
1.94
6.72
1.49
7.17
Dec 1997
0.59
3.06
-2.47
1.94
-1.35
0.99
-0.40
Mar 1998
8.07
8.90
-0.83
1.94
6.13
1.59
6.48
Jun 1998
-0.75
3.05
-3.80
1.94
-2.69
1.49
-2.24
Sep 1998
-6.44
-3.89
-2.55
1.94
-8.38
1.29
-7.73
Dec 1998
10.89
12.51
-1.62
1.94
8.95
1.09
9.80
Mar 1999
-0.83
2.50
-3.33
1.94
-2.77
1.59
-2.42
Jun 1999
6.80
3.77
3.03
1.94
4.86
1.69
5.11
Sep 1999
-4.78
-3.56
-1.22
1.94
-6.72
1.99
-6.77
Dec 1999
6.89
8.60
-1.71
1.94
4.95
1.29
5.60
Mar 2000
2.62
2.57
0.05
1.94
0.68
2.69
-0.07
Jun 2000
-1.42
-1.02
-0.40
1.94
-3.36
1.69
-3.11
Sep 2000
3.54
0.63
2.91
1.94
1.60
1.69
1.85
Dec 2000
0.95
-3.01
3.96
1.94
-0.99
1.19
-0.24
Mar 2001
-2.54
-5.93
3.39
1.94
-4.48
2.19
-4.73
Jun 2001
4.11
3.69
0.42
1.94
2.17
2.09
2.02
Sep 2001
-6.53
-7.20
0.67
1.94
-8.47
1.18
-7.71
Dec 2001
6.32
6.41
-0.09
1.94
4.38
0.09
6.23
Mar 2002
0.47
0.03
0.44
1.94
-1.47
2.19
-1.72
Jun 2002
-5.93
-6.75
0.82
1.94
-7.87
1.69
-7.62
Sep 2002
-7.51
-8.45
0.94
1.94
-9.45
1.59
-9.10
Dec 2002
3.08
5.95
-2.87
1.94
1.14
0.98
2.10
Mar 2003
-1.47
-1.24
-0.23
1.94
-3.41
2.80
-4.27
Jun 2003
7.62
10.56
-2.94
1.94
5.68
0.69
6.93
Sep 2003
1.16
1.44
-0.28
1.94
-0.78
1.79
-0.63
Dec 2003
7.08
7.21
-0.13
1.94
5.14
0.49
6.59
Mar 2004
2.67
2.25
0.42
1.94
0.73
2.59
0.08
Returns for periods exceeding one year are annualized.
IIndex change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
24
I
Palm Beach Gardens General Employees'
i
General Employees Pension Plan
Quarterly Comparison Analysis ( %)
Period
Fund
Policy
Diff
Nominal 8%
Diff
CPI + 4%
Diff
End ng
Jun 2004
-0.24
-0.25
0.01
1.94
-2.18
2.19
-2.43
Sep 2004
-0.38
0.30
-0.68
1.94
-2.32
1.08
-1.46
Dec 2004
6.17
5.82
0.35
1.94
4.23
1.18
4.99
Mar 2005
-1.19
-1.54
0.35
1.94
-3.13
2.59
-3.78
Jun 2005
1.32
2.21
-0.89
1.94
-0.62
1.69
-0.37
Sep 2005
1 1.75
1.79
-0.04
1.94
-0.19
3.20
-1.45
Dec 2005
2.07
1.50
0.57
1.94
0.13
-0.01
2.08
Mar 2006
2.71
2.25
0.46
1.94
0.77
2.59
0.12
Jun 2006
-1.09
-0.89
-0.20
1.94
-3.03
2.59
-3.68
Sep 2006
3.95
4.92
-0.97
1.94
2.01
0.98
2.97
Dec 2006
3.84
4.49
-0.65
1.94
1.90
0.49
3.35
Mar 2007
4.49
1.13
3.36
1.94
2.55
2.69
1.80
Jun 2007
2.07
3.91
-1.84
1.94
0.13
2.39
-0.32
Sep 2007
4.29
2.36
1.93
1.94
2.35
1.28
3.01
Incept.
9.15
9.97
-0.82 1
8.001
1.15 1
6.60
2.55
IReturns for periods exceeding one year are annualized.
' Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
' 25
Palm Beach Gardens General Employees'
General Employees Pension Plan
Risk Measures Report Explanation
The evaluation of a fund's performance should extend beyond return to encompass measures of risk. The next two pages are
used to determine the level of risk to which the fund has been exposed, and whether the return has been commensurate with
the risk taken. All measures are calculated for both the fund and the policy as well as the difference between the two. Up to four
time periods are evaluated depending on the age of the fund.
# Of Negative Qtrs/# Of Positive Qtrs: Number of negative quarters shows the number of quarters in which the return was less
than zero, and the number of positive quarters is the number of quarterly returns which were greater or equal to zero.
Batting Average: The batting average is a measure of consistency. It shows the percent of the quarters the fund has beaten
the policy and the percent of the quarters the policy has beat the fund. A high average for the fund (e.g. over 50) is desirable,
indicating the fund has beaten the policy frequently.
Worst Quarter /Best Quarter /Range: The worst quarter is the lowest quarterly return experienced during the period, a measure
of downside risk. The best quarter is the highest quarterly return, and the range is the difference of the high and low, and
indicates dispersion.
Standard Deviation: Standard deviation measures the total volatility of the fund, by measuring dispersion. Higher standard
deviation indicates higher risk. If the quarterly or monthly returns are all the same the standard deviation will be zero. The more
they vary from one another, the higher the standard deviation. Thus, it measures uncertainty, which is a measure of risk.
Alpha/Beta/R- Squared: If the policy is appropriate, then the alpha should be positive, the beta close to one, and the r- squared
should be high. Beta measures risk relative to the policy. A beta of 1 suggests risk equivalent to the policy. Higher betas
indicate higher relative risk. A beta of 1.2 indicates 20% more risk than the policy. The alpha measures the return adjusting for
beta. The higher the alpha, the better. R- squared measures the relationship between the policy and the fund. A high r- squared
means the returns of the fund can largely be explained by movements of the policy. The higher the r- squared, the more reliable
the alpha and the beta. R- squared may range from 0 to 100. Beta, alpha and r- squared are derived from regression analysis
using the fund and policy returns as the dependent and independent variables respectively. Roughly, one would expect the
fund's performance to equal the return of the policy multiplied by the beta plus the alpha.
Sharpe Ratio/Treynor Ratio: The Sharpe and Treynor ratios are similar. The Sharpe ratio is the excess return per unit of total
risk as measured by standard deviation. The Treynor ratio is the excess return per unit of market risk as measured by beta.
Both of these should be compared against the corresponding value for the policy. Higher numbers are better, indicating more
return for the level of risk that was experienced.
Ki
Palm Beach Gardens General Employees'
General Employees Pension Plan
Risk Measures
3 Yr
Fund
Policy
Diff
_
# of Negative Qtrs
2.00
2.00
0.00
# of Positive Qtrs
10.00
10.00
0.00
Batting Average
50.00
50.00
0.00
Worst Qtr
-1.19
-1.54
0.35
Best Qtr
6.17
5.82
0.35
Range
7.36
7.36
0.00
Worst 4 Qtrs
3.98
3.97
0.01
Standard Deviation
5.42
4.64
0.78
Beta
1.02
1.00
0.02
Annualized Alpha
0.73
0.00
0.73
R- Squared
0.77
1.00
-0.23
Sharpe Ratio
1.19
1.20
-0.01
Treynor Ratio
6.32
5.59
0.73
Tracking Error
2.62
0.00
2.62
Information Ratio
0.33
_
L
10 Yr
Fund
Policy
Diff
# of Negative Qtrs
14.00
12.00
2.00
# of Positive Qtrs
26.00
28.00
-2.00
Batting Average
45.00
55.00
-10.00
Worst Qtr
-7.51
-8.45
0.94
Best Qtr
10.89
12.51
-1.62
Range
18.40
20.96
-2.56
Worst 4 Qtrs
-11.63
-12.21
0.58
Standard Deviation
7.84
8.66
-0.82
Beta
0.83
1.00
-0.17
Annualized Alpha
0.01
0.00
0.01
R- Squared
0.84
1.00
-0.16
Sharpe Ratio
0.33
0.36
-0.03
Treynor Ratio
3.11
3.10
0.01
Tracking Error
3.48
0.00
3.48
Information Ratio
-0.15
_
L
5 Yr
Fund
Policy
Diff
# of Negative Qtrs
5.00
1 4.00
1.00
# of Positive Qtrs
15.00
16.00
-1.00
Batting Average
40.00
, 60.00
-20.00
Worst Qtr
-1.47
-1.54
0.07
Best Qtr
7.62
10.56
-2.94
Range
9.09
12.10
-3.01
Worst 4 Qtrs
3.98
3.97
0.01
Standard Deviation
5.64
5.86
-0.22
Beta
0.86
1.00
-0.14
Annualized Alpha
0.34
0.00
0.34
R- Squared
0.80
1.00
-0.20
Sharpe Ratio
1.31
1.41
-0.10
Treynor Ratio
8.59
8.27
0.32
Tracking Error
2.66
0.00
2.66
Information Ratio
-0.33
_
L
Incept
Fund
Policy
Diff
# of Negative Qtrs
15.00
12.00
3.00
# of Positive Qtrs
37.00
40.00
-3.00
Batting Average
40.38
59.62
-19.24
Worst Qtr
-7.51
-8.45
0.94
Best Qtr
11.16
12.51
-1.35
Range
18.67
20.96
-2.29
Worst 4 Qtrs
-11.63
-12.21
0.58
Standard Deviation
7.72
8.62
-0.90
Beta
0.81
1.00
-0.19
Annualized Alpha
0.32
0.00
0.32
R- Squared
0.82
1.00
-0.18
Sharpe Ratio
0.66
0.69
-0.03
Treynor Ratio
6.28
5.91
0.37
Tracking Error
3.69
0.00
3.69
Information Ratio
-0.22
_
L
Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/112007 International added to Policy
27
13.00%
12.00%
11.00%
10.00%
A
n
n
u
a 9.00%
z
e
d
8.00%
R
e
t
u
r 7.00%
n
6.00%
5.00%
4.000/A n ,
-ww iu 1 V.WU /0
Risk (Annualized Std Dev)
-- Policy
Index change effective 1/1/06 from LB Gov /credit to LB Aggregate 1/1/2007 International added to Policy
28
Palm Beach Gardens General Employees'
General Employees Pension Plan
Return vs Risk through September 30, 2007
I U.UU %0
LU.UU%
20.00%
15.00%
R
e
t 10.00%
u
r
n
s
5.00%
Palm Beach Gardens General Employees'
General Employees Pension Plan
Return vs Risk through September 30, 2007
3 Years 5 Years
25.00%
N
0.00%
1.00% 3.00% 5.00% 7.00% 9.00%
0.00% 2.00% 4.00% 6.00% 8.00%
Risk (Annualized Std Dev)
7.50%
7.00%
6.50%
R 6.00%
e
t 5.50%
u
r
n 5.00%
s
4.50%
4.00%
�E
3.50%
10 Years
X
LB Gov /(
X S &P 500
5.00% 10.00% 15.00% 20.00%
Risk (Annualized Std Dev)
20.00%
R 15.00%
e
t
u
n 10.00%
s
5.00%
0.00 ° /
8.00%
13.00%
12.00%
11.00%
10.00%
R
e 9.00%
t
u 8.00%
r
n
s 7.00%
6.00%
5.00%
4.00°/8 0
5.00% 10.00%
Risk (Annualized Std Dev)
Inception
15.00% 1
-�- Policy
Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
29
- -- -0% '
Risk (Annualized Std Dev)
S &P 5
X3 Mo Mill )KLB Go
/Corp
N
0.00%
1.00% 3.00% 5.00% 7.00% 9.00%
0.00% 2.00% 4.00% 6.00% 8.00%
Risk (Annualized Std Dev)
7.50%
7.00%
6.50%
R 6.00%
e
t 5.50%
u
r
n 5.00%
s
4.50%
4.00%
�E
3.50%
10 Years
X
LB Gov /(
X S &P 500
5.00% 10.00% 15.00% 20.00%
Risk (Annualized Std Dev)
20.00%
R 15.00%
e
t
u
n 10.00%
s
5.00%
0.00 ° /
8.00%
13.00%
12.00%
11.00%
10.00%
R
e 9.00%
t
u 8.00%
r
n
s 7.00%
6.00%
5.00%
4.00°/8 0
5.00% 10.00%
Risk (Annualized Std Dev)
Inception
15.00% 1
-�- Policy
Index change effective 1/1/06 from LB Gov /Credit to LB Aggregate 1/1/2007 International added to Policy
29
- -- -0% '
Risk (Annualized Std Dev)
Palm Beach Gardens General Employees'
General Employees Pension Plan
Policy: 09/30/1994 - 12/31/2005 60.00 S &P 500
40.00 Lehman Gov /Credit Bond
01 /01 /2006 -12/31 /2006 60.00 S &P 500
40.00 Lehman Aggregate Bond
01/01/2007- 09/30/2007 60.00 S &P 500
35.00 Lehman Aggregate Bond
5.00 MSCI EAFE
First Objective: 09/30/1994- 09/30/2007 Annual Return of 8.00%
Second Objective: 09/30/1994- 09/30/2007 100.00 US Consumer Price Index
+ 4.00 annual adder
Universe Data: 60% PLCC, 35% HQB & 5% International
09/30/1994- 12/31/2006 40.00 High Quality Bond
60.00 Pure Large Cap Core
01/01/2007- 09/30/2007 35.00 High Quality Bond
60.00 Pure Large Cap Core
5.00 International Equity
W
MSCI EAFE
MSCI Emerg. Mktg.
S&P 500
Russell 3000
Russell 1000
Russell 2000
Lehman US Agg.
Lehman US Gov.
Lehman MBS Fixed
Lehman US Credit
3mos. T-Bill
-6.0%
The Market Environment
Asset Class Performance
Period Ended= September 30, 2007
Quarter Performance
-3.0% 0.0% 3.0% 6.0% 9.0% 12.0% 15.0%
Source: MSCI Capital Markets, Russell Co., HFR, Lehman, & Bogdahn Consulting, LLC.
MSCI EAFE
MSCI Emerg. Mkts.
S&P 500
Russell 3000
Russell 1000
Russell 2000
Lehman US Agg.
Lehman US Gov.
Lehman MBS Fixed
Lehman US Credit
3mos. T-Bill
0.
Year-to-Date Market Performance
0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
Bogdahn Consulting, LLC.
The Market Environment
Asset Class Performance
Period Ended= September 30, 2007
Five Year Annualized Performance
MSCI EAFE
MSCI Emerg. Mkts.
S&P 500
Russell 3000
Russell 1000
Russell 2000
Lehman US Agg.
Lehman US Gov.
Lehman MBS Fixed
Lehman US Credit
3mos. T-Bill 2.6%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
Rniirrp• MRrl ranital Markoic Rij.ccPll rn HFR 1 ahman ritirnm R Rnndahn rnn.quitinn 11 r
Ten Year Annualized Performance
MSCI SAFE
MSCI Emerg. Mkts.
S &P 500
Russell 3000
Russell 1000
Russell 2000
Lehman US Agg.
Lehman US Gov.
Lehman MBS Fixed
Lehman US Credit
3mos. T-Bill
0.0°
/0 3.0% 6.0% 9.0% 12.0% 15.0%
Bogdahn Consulting, LLC.
The Market Environment
' Equity Sector Performance
Period Ended: September 30, 2007
Sector Performance
' as of 9/30/2007
ENERGY 8.4%
8.0°
MATERIALS #4.2% 24.8%
INDUSTRIALS .3%
17.9%
'
CONSUMER DISCR '5.5%
o
' CONSUM Eft STAPLES 4.5%
10.2%
HEALTH CARE 1.9%
FINANCIALS -3.9%
-5.0%
' INFORMATION TECH 5.4%
15.7%
TELECOM SVC 2.0%
' 17.6%
UTILITIES 1.3%
10.4% O QTD ■ YTD
Source: MSCI Barra & Bogdahn Consulting, LLC.
Bogdahn Consulting, LLC.
The Market Environment
Equity Style Performance
Period Ended: September 30, 2007
Source: Russell Co.
Russell All Cap Style Performance
25 - -1
19.3 181 - - - --
20 - -- - - T�.3 _ - - - - 16. -2-
137____ 13.7 160 14.2
16 - - - - - - 3'2:4...- - -- - -- - - 32:4 - -- - -�
10 8.8 6.8 8.8-
6.2
0
-5 -0.8 - -�
25
20
15
10
5
0
.5
Qtr YTD lyr Syr Syr
Q 3000 Growth ■ 3000 Index ■ 3000 Value
Russell Large Cap Style Performance
l0yr
19.4
i 18.1
--- 1 15 S - -16 0
14.5
2. -7 - _ _ __ 12:213.8 13.8 _
9.3 8.8
4.2 6.0 4.1
0.2
Qtr YTD lyr Syr Syr 10yr
01000 Growth ■ 1000 Index ■ 1000 Value
Russell Small Cap Style Performance
24 - - -- -- - -- -- - - -- -�
20 -_ 18.9 18.7 18.8 18.7
16 12.3 14.1 -13.4 12.5 I
12 - 9.4 - 10.1-
7.2 �
3.7
4 0.0 3.2 -
0
Qtr YTD lyr Syr Syr
❑ 2000 Growth ■ 2000 Index ■ 2000 Value
Bogdahn Consulting, LLC.
l0yr
30.0%
20.0%
10.0%
0.0%
-10.0%
- 20.0%
- 30.09%
DM M $ SrnrnNNMM r-CDW 00m OD m aO mmCDC) Ilmnrnn 88mnnrnmomrnm
8 $0000aoaso0 `8`Bo
—Value -- Growth
Source: Frank Russell Co. & Bogdahn Consulting, LLC.
The Market Environment
Trends for Stocks and Bonds
Period Ended: September 30, 2007
Growth vs. Value
Russell 1000 Excess Return Rolling 12 Month Periods
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Treasury Yield Curve
1 Mo 3 Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 10 Yr 30 Yr
Source: Federal Reserve
Bogdahn Consulting, LLC.