HomeMy WebLinkAboutAgenda GEPF 082399•. CITY OF PALM BEACH GARDENS
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 on August 23 tiff~ at
1:30 PMat Municipal Annex Conference Room
AGENDA
May 17, 1999 1. Approval of minutes dated _________ _
2. Investment Reports
A. Investment Manager
B. Performance Monitor
3. Old Business
A. Payment of invoices
B.
c.
D.
4. New Business
A. Discussion -Letter from Mark Davis of July 20, 1999
B. Discussion -Summary Plan description -Revision
c.
D.
5. Attorney's Report
6. Adjoununent
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 James Waldron no
later than seven days subsequent to the proceeding at (561-775-8200)
for assistance; if hearing impaired, telephone the Florida Relay Service Numbers, (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.
SunTrust Banks of Florida, Inc.
Mail Code 0-1081
Post Office Box 3808
Orlando, FL 32802
Tel (407) 237-4254
Tel (800) 432-4760 Ext. 4254
Fax (407) 237-4554
SUNThusr
May 14, 1999
Jack Hanson
City ofPalm Beach Gardens
10500 North Military Trail
Palm Beactt Gardens, FL 33410
Dear Mr. Hanson:
------------------------------
Trust and Investment Services Group
I am very pleased to announce that effective April 1, 1999, Becky Carroll has accepted the
position as Team Leader for the Trust and Investment Services South Florida Group.
As T earn Leader, Becky will be in a managerial capacity over the Administrative Officers
serving the South Florida marketplace.
Your new Account Administrative Officer will be Mark Davis. Mark has over seven years '
experience in the Employee Benefits field . I am confident that you will find him very
service-oriented and conscientious in the administration ofyour account.
Louanne DeNardo, who has been your Trust Representative, will continue to serve in that
role and will be an important source of information for your account. Mark may be reached
at 1-800-432-4760 extension 5211 or 407-237-521 1. You may continue to reach Lotianne
at extension 6759.
We value you as a client and hope that these changes will continue to demonstrate our desire
to provide you with quality services. I hope that you will join me in congratulating Becky on
her new responsibilities. Mark looks forward to meeting and working with you in the future.
Sincerely, ~~~+
First Vice President
and Trust Officer
. . SunTrust Banks of Florida, Inc.
Mail Code 0-1081
Post Office Box 3808
Orlando, FL 32802
Tel (407) 237-4254
Tel (800) 432-4760 Ext . 4254
Fax (407) 237 -4554
Trust and Investment Services Group
SUNTRusr
July 20, 1999
Jack Hanson
City of Palm Beach Gardens
10500 North Military Trail
Palm Beach Gardens, FL 33410
Dear Mr. Hanson:
In order to protect the Plan 's assets, it is important for SunTrust to be made aware of the
individuals who are recognized as authorized signers for the retirement plan .
These procedures were instituted with the "commercially reasonable" standards established
by the Comptroller of the Currency. To ensure that our files are current, we are requesting
your assistance by completing and signing the enclosed Certification of Authorized Signers
and Agreement Regarding Requests for Wire Transfers & Distributions From Account .
The employees listed in Item 2 & 5 for telephone verification do not have to be the same as
the Official Signers authorized to direct distributions.
Wires received prior to 2:00 PM ET will be invested in the appropriate investment.
Any wires received after 2:00 PM ET will not be invested until the next day. If you have
any questions regarding this form or the procedures, please do not hesitate to contact me at
1-800-432-4760, extension 5211.
We also would like to update our files regarding your current investment objectives.
Our records indicate that you currently have a/an Balanced objective. If your objective
remains the same or if you wish to change your investment objective, please indicate such by
checking the box on the enclosed Investment Objective Form; then sign and return to my
attention in the envelope provided. If you would like to discuss your objectives further,
please feel free to call your investment officer, Steve Gordon, at l-800-926-4STI, extension
5485 .
::;d-.??
Mark K. Davis, CEBS
Assistant Vice President
and Trust Officer
Enclosures
. ..
CERTIFICATION OF AUTHORIZED SIGNERS AND AGREEMENT REGARDING
REQUESTS FOR WIRE TRANSFERS & DISTRIBUTIONS FROM ACCOUNT
SunTrust Bank, Central Florida, N.A. [the Bank] is serving as Investment Manager of the City of Palm
Beach Gardens Pension Plan account pursuant to Investment Management Agreement dated October
23, 1993. Under the terms of that agreement the Bank may be requested or required to make payments to
the undersigned or to third parties designated by the undersigned. Some parties to the account may ask
that the Bank make those payments by electronic Funds Transfers. also known as "Wires." The
undersigned acknowledges that such transfers may cause the almost instantaneous transfer of significant
sums of money, without the opportunity to recall the transfer, upon the basis of relatively little contact
between themselves or an intended beneficiary of the transfer, and the Bank, and that it is a common and
wise practice for banks and those dealing with them by means of such transfers to institute security
procedures to protect against errors or fraud in transfers. In order to induce the Bank to make payments
by means of Funds Transfers the undersigned selects the Security Procedure.
Initialed below [the "Procedure"] and agree(s) that:
1. The undersigned will cause all requests for transfers and changes or cancellations to such requests
["Requests"] to be delivered to the Bank in a manner which complies with the Procedure
["In Compliance"].
2. If the Bank receives a Request which is not In Compliance, it shall not make the transfer so requested
but shall make a reasonable effort to cure the lack of Compliance or inform the person making the
Request that the Bank will not act upon it and inform the undersigned by telephone call to Mr./Mrs./
Ms. at that a Request which was not In Compliance has been received.
3. If the Bank makes a transfer pursuant to a Request which it reasonably believes it received In
Compliance, it shall not be liable to the undersigned or to any person for whose benefit the
undersigned intended to make the Request.
4. The undersigned will indemnify the Bank against claims arising from transfers made as a result of
Requests delivered In Compliance and transfers not made pursuant to Requests not delivered In
Compliance, and will defend the Bank, or at the Bank's option pay for the cost of defending the Bank
against such claims.
5. The procedures for wire transfers will be as follows:
Security Procedure #1 Call Back Procedure
Upon receipt of a Request the Bank, regardless of the means by which the request was
transmitted, will initiate a telephone call to
_____ __:at phone# _____ _, or
______ at phone# or
______ at phone# or
If any person reached at the number described above shall identify himself I herself as the designated
person for that number and shall confirm the request in all its terms, the Bank shall treat the request as
being In compliance. If the Bank is unable to obtain confirmation of the request after reasonable efforts,
the Bank shall treat the Request as not In Compliance. The designations of persons and phone numbers
made above may be changed only by a writing signed by the undersigned and referring, to this
agreement.
• . -------------------
CERTIFICATION OF AUTHORIZED SIGNERS AND AGREEMENT REGARDING
REQUESTS FOR WIRE TRANSFERS & DISTRIBUTIONS FROM ACCOUNT
Security Procedure #2 Mutually Agreed Procedure
The Undersigned and the Bank agree that they will use the security procedure described in the
attached writing which refers to this paragraph of this agreement and is signed by the Bank and
the Undersigned.
I, the undersigned, hereby certify to SunTrust Bank, Central
Florida, N.A. that I am the duly elected Secretary of--------------
and that the following represents a complete and true list of the individuals, and their official
specimen signatures, who are authorized to sign for the above referenced Plan and Trust on
behalf of the Employer:
Print Name Official Signature
Print Name Official Signature
Print Name Official Signature
Print Name Official Signature
I further certify that SunTrust Bank, Central Florida, N.A . is authorized to accept direction from
any (if blank, only one required) of the above listed individuals, and that
SunTrust Bank, Central Florida, N.A. shall be fully protected in relying on any certification
contained herein and shall be indemnified and saved harmless from any claims, demands,
expenses, loss, or damage resulting from, or growing out of, honoring the official signature of
any of the above listed individuals, or refusing to honor the signature of any individual not listed
above.
I further certify that I have selected the Procedure above for wire transfer requests and agree to
be bound by the terms of the agreement.
I further certify that the foregoing shall remain in full force and effect until express written notice
of any changes to the foregoing shall have been furnished to and received by SunTrust Bank,
Central Florida, N .A., and that receipt of such notice shall not affect any action taken by
Sun Trust Bank, Central Florida, N.A. prior thereto.
IN WITNESS WHEREOF, I have hereunto subscribed my name as Secretary pursuant to due and
lawful authority this day of 19
Secretary
File INew 1Wire2
. ••• sn
Capital
Management INVESTMENT OBJECTIVE FORM
Plan I Account Name: City of Riviera Beach General Employees Retirement Plan Account#: 6825010
To meet objectives of the plan participants, STI Capital Management requires the direction of the plan's fiduciary.
Selection of an investment objective -Aggressive, Balanced, Conservative or Principal Preservation -will enable STI
Capital Management to invest the plan assets in a manner suitable to the participants' long-term objective.
Please check one of the following boxes:
Higher
Lower
D
D
D
D
A . * ggreS SIVe 75-95% Equity I 5-25% Fixed Income
* Balanced 50-70% Equity I 30-50% Fixed Income
Cons e rva tiv e * 100% Fixed Income
P rin cip al Preserv ati on * 100% Stable Asset Fund and/or Cash Equivalent
Higher
Lower
• Exact asset allocation percentages are determined by the STI Capital Management Investment Policy Committee and are reviewed at least quarterly .
The STI Classic Funds are the investment vehicles utilized in the above investment objectives. STI Capital Management
reserves the right to adjust the allocation periodically and to introduce additional STI Classic Funds to the overall asset mix
to achieve the above stated objective. This objective remains in effect until changed by written agreement.
As Fiduciary for the Plan, we hereby give authorization and consent to your investment of the assets of the Plan in
the STI Classic Fund(s) and the SunTrust Employee Benefit Stable Asset Fund where consistent with the Plan's
investment objectives agreed upon from time to time.
We understand that the STI Classic Funds pay an investment advisory fee as well as fees for other services and
that the part of such investment advisory fee which is a ll ocable to the Plan can be rebated promptly each month in
cash to the Plan's account and will be invested in accordance with the investment objectives for the assets of the
Plan. Rebate does not apply to the Sun Trust Employee Benefit Stable Asset Fund. However, the fees paid by the
Plan to you or to one of your affiliates will not be reduced or otherwise im pacted in any way on account of any
fees paid to you or to one of the Sun Trust Bank, Inc. affiliates by the STI Classic Funds for services other than
investment advisory services. Please refer to the fund prospectus for "other fund expenses."
We give this authorization and consent after reviewing the "other expenses" in the prospectus for the STI Classic
Fund(s). We understand that any change in such fee sche du le of fee rebate arrangement will be promptly
communicated to us.
We intend that this authorization remain in effect until revoked by us, and we understand that we can revoke this
authorization at any time without penalty.
By: Title:
Employer: Date:
STI Capital Management Client Service Officer Date
Investments in the STI Classic Funds are not deposits or obligations of, or guaranteed by, SunTrust Banks, Inc. or any of
its affiliates and are not insured by the FDIC or any government agency. Investments in mutual funds involve investment
risks, including possible loss of principal.
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Palm Beach Gardens
General Employees'
Pension Plan
Second Quarter 2006
R 0 C K W 0 0 D C A PIT A L A D V I S 0 R S
1401 S. Brentwood Blvd. Suite 400 • . St.Louis, Missouri 63144 • (888) 962-8336 (toll-free) • (314) 962-1254 (fax)
New Fed Captain
A\EE£££E!
,{R£ AlL GONJt4 DIE II!
lOCIWOOD CAPITAL ADVISORS 1
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Palm Beach Gardens General Employees' Pension Plan
Second Quarter 2 006
Equities
Short-Term Funds
Accrued Income
Total Fund
Portfolio Summary
Beginning Ending %of Est. .
M k tV I Market p rtf 1. Annual Current Yreld ar e a ue V 1 o o ro 1 a ue ncome
$1,696,245
$58,508
$1,605
$1,689,726
$23,413
$1292
98.6%
1.4%
$19,662
$1 ,056
1.2%
4 .5%
TOTAL $1 ,756 ,358 $1 ,714 ,430 100% $20 ,71 7 1.2%
Change this Quarter: -$41 ,92 7
Change in Market Value
Beginning Balance $1,756.358
Net Dividends/Interest
Contributions
Disbursements
Net Realized & Unrealized (G/L)
$6 ,697
$25 ,849
($39 ,033)
($35,441)
Ending Balance $1,714,430
Portfolio Summary
Short-Term
Total Fund Performance
Funds
1%
lOCIWOOD CAPITAL ADVISORS
2"d Qtr YTD*
2006
Pa lm Beach GE -1.8% 2.6%
Policy -1.4% 2.7%
Diff +/--Q.4% -0.1%
* 10/25/05 1nception
2
~---------------------------------------------------------------------------------------
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Palm Beach Gardens General Employees' Pension Plan
Equity -Second Quarter 2006
Market Environment
• The U.S. equity markets were turbulent in the second quarter leading into the heat of the
summer. While the quarter got off to a nice start in April" (S&P 500 +1.2%), we saw
investors recoil in May as market breadth deteriorated (S&P 500 -3.1% ), and while most
of June was ugly (S&P 500 0.0%), a few strong days toward the end of the month left
investors with renewed optimism. For the quarter the S&P 500 fell 1.4% while the Russell
3000 was down 2%.
• Though the dominant market trend is still positive, a true "stock pickers" environment has
finally emerged as breadth has deteriorated.
• Leadership within our portfolio continues to be concentrated in the cyclical groups:
aerospace/defense, machinery and financials, where we are impressed with the
resilience of the uptrends through this market pullback.
• Laggards came mostly from our exposure to the technology sector, select energy
holdings and healthcare. Information Technology is downgraded further from neutral to
negative as the sector is unable to follow through on earlier positive development as
weakness has spread across all industries. The energy sector rebounded in June;
however, the sector continues to flash early warning signals as more downgrades occur.
The managed health care group has finally rallied within a downtrend and is our group
focus sell for July.
• Looking forward, we have reduced our technology and energy exposure. We continue to
remain bullish on industrials and financials. Large cap stocks are showing signs of
improvement which we may be adding to in the coming months.
Performance
12%,------------------------------------------------------,
8%
4%
2nd Qtr.
2006
1stQtr.
2006
• Palm Beach Gardens GE
lOCIWOOD CAPITAL ADVISOlS
8 .0 %
YTD Since Inception
(10/25/05) .
D S&P500
3
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Equity Characteristics
Second Quarter 2006
Characteristics
Number of Stocks
Beta
Yield
Large Cap
Mid Cap
Small Cap
Sector Weighting
Cons. Discretionary
Cons. Staples
Energy
Financial Services
Health Care
Industrials
Information Tech.
Materials
Telecom/Utilities
Misc.
2.9%
3.3%
12 .5%
26 .7%
12.6%
23.4%
16.2%
0.0%
2.4%
0.0%
100%
lOCKWOOD CAPITAL ADVISOR.S
37
0.8
1.2%
35%
58%
7%
Top 10 Holdings
1. Seagate Technology
2. J2 Global Communications
3. Caterpillar
4. Boeing Co.
5. Canadian Pacific Railway Ltd .
6. Landstar System Inc.
7. Halliburton Co.
8. lndymac Bancorp Inc.
9. Precision Castparts
10. El Paso Corp.
3.6%
3.5%
3.3%
3.1%
3.1%
3.0%
2.9%
2.9%
2.8%
2.8%
4
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Equity Transactions
Second Quarter 2006
April
April
May
May
June
June
April
April
Sold
Goodyear Tire & Rubber Corp .
Walgreen Co .
Swift Energy Co.
Performance Food Group
Apache Corp.
Adtran Inc.
Bought
J2 Global Communications
Ryanair Holdings Pic.
May Prudential Financial
May
June
June
CIT Group Inc.
Brown-Forman Corp .
Hewlett-Packard Co.
l 0 C I W 0 0 D C A PIT A L A D V I S 0 l S 5
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Equity Holdings -Second Quarter 2006
ISSUE SHARES COST PER ISS POSITION MARKET MARKET ''• FUND ANNUAL CURRENT
SHARE CGQ COST PRICE VALUE MARKET INCOME YIELD',
CASH
AFLACINC
APARTMENT INVT & MGMT
BOEING CO
BROWN-FORMAN CORP
CANADIAN PACIFIC RAJLW
CATERPILLAR INC
CHESAPEAKE ENERGY CORP
CIT GROUP INC
ELPASOCORP
FAIR ISAAC CORP
FISERVINC
HALLIBURTON CO
HCC INSURANCE HOLDINGS
HENRY SCHEIN INC
HEWLETT-PACKARD CO
INDYMAC BANCORP INC
LANDSTAR SYSTEM INC
LOCKHEED MARTIN CORP
LOEWSCORP
MCKESSON CORP
MEDIMMUNE INC
PG&ECORP
PRECISION CASTPARTS CO
PROTECTIVE LIFE CORP
PRUDENTIAL FINANCIAL I
RY ANAIR HOLDINGS PLC
SAFEWAYINC
SEAGATE TECHNOLOGY
SIMON PROPERTY GROUP I
STERICYCLE INC
SLINRISE SENIOR LIVING
T ROWE PRICE GROUP INC
TO AMERITRADE HOLDING
TEXAS INSTRUMENTS INC
THO INC
VCA ANTECH INC
VOLVO AB..SPONSORED ADR
J2 GLOBAL COMMUNICATIO
23
925
1,040
650
590
1,040
760
1,195
825
3,240
970
920
660
1,355
970
1,345
1,065
1,105
640
1,275
860
1,165
1,075
815
935
565
815
1,720
2,705
560
655
1,300
1,150
1,855
1,340
1,620
1,445
915
1,940
1.00
47.23
36.91
64.47
74.52
44 .05
49 .83
31.29
54.92
11 .72
44.36
43.76
55.46
28.00
45.52
32.32
35.78
37.15
60.12
29.94
45.92
35.32
35.89
46.02
41.74
78.05
55.22
22.29
13.97
68 .08
63.44
34 .46
33.76
21 .46
33.48
27.20
28.86
40.65
23.18
NA
0.32
0.53
0.91
0.04
NA
0.89
0.97
0.90
0.78
0.68
0.41
0.62
0.84
0.84
0.84
0.89
0.38
0.54
0.22
0.66
0.05
0.87
0.52
0.96
0.74
NA
0.83
NA
0.14
0.21
0.26
0.06
0.20
0.55
0.33
0.07
NA
0.23
23,412.67
43,690.99
38,390 .98
41,906.02
43,966.98
45,815.02
37,871.03
37,392.03
45,308.01
37,973.12
43,032.01
40,260.03
36,602.02
37,945.96
44,157.99
43,476.99
38,106.02
41,046 .00
38,478.98
38,171.97
39,488.96
41,148.03
38,584.01
37,509.97
39,022.97
44,095.99
45,006.99
38,342 .07
37 ,789.12
38,125 .02
41,553.99
44,800.99
38,819.06
39,814.98
44,859.98
44,069.02
41,707.04
37,194.02
44,961.05
1.00
46.35
43.45
81.91
71.45
51 .14
74 .48
30 .25
52.29
15.00
36.31
45.36
74.21
29.44
46.73
31 .68
45.85
47.23
71.74
35.45
47.28
27.10
39.28
59.76
46.62
n.70
52.72
26.00
22.64
82 .94
65.10
27.65
37.81
14.81
30.29
21.60
31.93
49.01
31.22
23,412.67
42 ,873.75
45,188.00
53,241.50
42,155.50
53,185.60
56,604.80
36,148.75
43,139.25
48,600.00
35,220.70
41,731.20
48,978.60
39,891.20
45,328.10
42,609 .60
48,830.25
52,189.15
45,913.60
45,198.75
40,660.80
31 ,571.50
42,226.00
48,704.40
43,589.70
43,900.50
42,966.80
44,720.00
61,241.20
46 ,446.40
42,640.50
35,945.00
43,481.50
27,472 .55
40,588.60
34,992 .00
46,138.85
44,844.15
60,566.80
1.367 945.87
2.503 493.05
2.638 2349.78
3.108 793.30
2.461 670.27
3.105 739.?8
3.304 962 .28
2.110 292 .80
2.518 6n.29
2.837 510 .30
2.056 81.01
2.436 0.00
2.859 391.83
2.329 542.52
2.646 0.00
2.487 434.62
2.850 2031 .34
3.046 120.04
2.680 734 .62
2.638 316.39
2.373 207.37
1.843 0.00
2.465 1393.46
2.843 102.28
2.544 810 .n
2.563 439 .01
2.508 0.00
2.610 415 .90
3.575 0.00
2.711 1662.78
2.489 0.00
2.098 0.00
2.538 334.81
1.604 0.00
2.369 170.47
2.043 0.00
2.693 0.00
2.618 1901 .39
3.535 0.00
44,028 1.573 .898.06 1.713.138.22 100.000 20,524.81
lOCI.\YOOD CAPITAL ADVISOlS
4.04
1.15
5.20
1.49
1.59
1.39
1.70
0.81
1.57
1.05
0.23
0.00
0.80
1.36
0.00
1.02
4.16
0.23
1.60
0.70
0.51
0.00
3.30
0.21
1.86
1.00
0.00
0.93
0.00
3.58
0.00
0.00
o.n
0.00
0.42
0.00
0.00
4.24
0.00
6
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Economic Environment & Outlook
Second Quarter 2006
~ In the second quarter, the Federal Reserve raised the federal funds rate an
additional 50 basis points to 5.25%. The fed funds futures contract, the best
predictor of Fed policy moves, indicates that another increase in August is a
strong possibility. Most analysts believe the Fed would like to pause, however,
the Fed recently stated that future action is data dependent.
~ The Fed must remain on guard against the prospect of rising inflation
expectations. CPI has risen 4.2% over the past 12 months. A tightening labor
market has put upward pressure on wages. In September 2005, average hourly
earnings were rising at a r:nodest 2.7% year-over-year rate; but by June 2006 the
rate had climbed to 3.9%. Labor costs are clearly on the upswing.
~ Employment growth has slowed from an average of 176,000 jobs per month in
the first quarter of 2006 to 108,000 in Q2. However, other labor market
indicators are painting a different picture. The unemployment rate dropped to
4.6% in June, a level not seen since mid-2001 . High employment coupled with
strong wage growth should maintain the economy's momentum.
~ Housing has been a significant source of growth in the U.S. economy. Not only
have the direct effects of housing construction provided a major boost, but
consumer spending has also been elevated due to the high level of cash-out
refinancings and home equity lending. An increase in long-term interest rates is
likely to put the brakes on housing and could slow consumer spending.
~ The Bank of Japan has pursued a zero interest rate policy for years to stimulate
their moribund economy. Recently, with their economy showing signs of life, the
BOJ decided to abandon their easy money policy and withdrew the equivalent of
$188 billion from the banking system. This move delivered a powerful monetary
shock and contributed to higher rates across the globe.
~ We have become less defensive from a duration standpoint, and our portfolios
maintain durations near their respective benchmarks. While another Fed rate
hike to 5.5% is likely, the end of this tightening cycle is in sight. However, the
interest rate outlook will be driven by the economic data releases over the next
several months.
lOCIWOOD CAPITAL ADVISOlS 7
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Proxy Voting Record
t·UU.Sii~MIIiil!~
A DT RA N, Inc. A DTN
Mgmt Vote SHS
Ballot Issue Rec Cast Voted Date
Elect Directors
Ratify Auditors
Approve Omnibus Stock Plan
Approve Executive Incentive Bonus Pin
For
For
For
For
For
For
For
For
1430
1430
1430
1430
5/9/06
5/9/06
5/9/06
5/9/06
Mgmt Vote SHS
Ballot Issue Rec Cast Voted Date
Elect Directors
Ratify Auditors
Approval of High Performance Units
For
For
For
For
For
For
1040
1040
1040
5/10/06
5110/06
5/10/06
&·lili·@ii......_MiU!l!~
Fiserv, Inc. FISV
Mgmt Vote SHS
Ballot Issue Rec Cast Voted Date
Elect Directors
Ratify Auditors
Require a Majority Vote for the Election
of Directors
l 0 C I W 0 0 D CAP IT A L AD VI S 0 -1 S
For
For
Against
For
For
For
920
920
920
5/24/06
5/24/06
5/24/06 .
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Proxy Voting Record-(continued)
~~~.],!.iji.J i',.l¥1~ 4c Insurance Holdings, Inc. HCC
Mgmt Vote SHS
Ballot Issue Rec Cast Voted Date
Elect Directors For For 1355 5/11/06
~·liu.EU~fli.l!f!j~
Medlmmune, Inc. MEDI
Mgmt Vote SHS
Ballot Issue Rec Cast Voted Date
Elect Directors
Amend Non-Employee Director Stock
Option Plan
Ratify Auditors
For
For
For
Split
For
For
1165
1165
1165
5/25/06
5/25/06
5/25/06
Mgmt Vote SHS
Ballot Issue Rec Cast Voted Date
E ect rectors For For 1350 5/ 6/06
lOCIWOOD CAPITAL ADVISOlS 9
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Proxy Voting Record-(continued)
~,],,].@j • ....._._ifii.li!§~
Safeway Inc. SWY
Mgmt Vote SHS
Ballot Issue Rec Cast Voted Date
Elect Directors For For 1720 5125/06
Approve Executive Incentive Bonus Pin For For 1720 5/25/06
Ratify Auditors For For 1720 5/25/06
Provide for Cumulative Voting Against For 1720 5/25/06
Eliminate or Restrict Severance Against For 1720 5/25/06
Company-Specific-Establishment of an Against Against 1720 5/25/06 Office of the Board
Adopt Policy to Identify and Label Food
Products that Contain Genetically Against Against 1720 5/25/06
Engineered Ingredients
Issue Sustainability Report Against For 1720 5125106
Mgmt Vote SHS
Ballot Issue Rec Cast Voted Date
Proposal to approve the issuance of
Seagate common shares pursuant to For For 2705 5/17/06
the agreement and plan of merger
Proposal to approve adjournment of the
extraordinary general meeting to a later For For 2705 5/17/06 date, if necessary, to solicit additional
proxies
Mgmt Vote SHS
Ballot Issue Rec Cast Voted Date
Elect Directors
Ratify Auditors
Other Business
lOCIWOOD CAPITAL ADVISORS
For
For
For
Split
For
Again st
1150
1150
1150
4/26/06
4/26/06
4/26/06 .
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Proxy Voting Record-(continued)
Mgmt Vote SHS
Ballot Issue Rec Cast Voted Date
Elect Directors
Ratify Auditors
Approve Omnibus Stock Plan
IOCIWOOD CAPITAL ADVISOlS
For
For
For
Split
For
For
1445
1445
1445
6/05/06
6/05/06
6/05/06
11
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Performance Evaluation
for
Palm Beach Garden
General Employees Pension Plan
Rockwood & Sawgrass
For the Period Ending
June 30, 2006
Presented
by:
Bogdahn Consulting, LLC
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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 differe nt 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 secti on 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 perfo rmance 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/Do wn Ma rkets: 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 calcu lated 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
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Palm Beach Gardens General Employees'
General Employees Pension Plan
Executive Summary
Account Reconciliation
06/30/2006
Qtr
2006 09/30/1994
YTD Incept
~~~¥~!~~~~~:~:~::~::::::::::::::~~~~::~::~:::~:::~4?~::::::::::::::::::t~~r~~:
-~ ?~ ~ ~~
Trailing Returns through June 30, 2006
1 Yr · 2 Yr 3Yr 4 Yr 5Yr
Investment Policy
Index Weight
09/30/1994
6Yr 7Yr 8Yr 9 Yr 10 Yr Incept
:M#.(:::::::::::::::::~;$~:::::::::::::~i!:~::::::::::::t~~?.:::::::::::~~~::::::::::::~~~1 ::::::::::::~!t ::::::::::::~;~::::::::::::~~~~:::::::::::::~;t~::::::::::::t~:::::::::::::::::::::::~;#.::
)~~!~l t:::::u ~~tf )\\~i !:§Htt !:~#:W??f~~W:CH ~~~~//U i.~~f ??:@~il t?W#~f t:::¥*-~W??l~k /HC//~i §~:: .................... ·························································· ................... ················ ........... ··············· ·················· ····················· ........................................................................................ ·············
Calendar Year Returns
06/30/2006 2006
Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997
............... ················ ··············· ········································ ... ····················· ............................ . ............... .................. .. ·········. ·································· ............... ··············· ............ ··················· ~~~~~i ::::::~::::;:::::::::::::::::::~:~:::::::~~:::~A~:::::::::::l~?:::::::;:::::~~~~:::~:~::~:~i?:~:::::::;:::~~~~*-::::::::::~~;~t :::;:::::~~~;:;:;:;:::tP~~:;::::*:~~~::::::~~;'-::
:9!t :::::::::::::::~:::::::::::::::::~:::~:fo :::::::::::9.i~1 :::::::::::i~::::::::::::~A~::::::::::~;~@.:::::::::::~:if ::::::::::::#.i ~~::::::::::::l~~:::::::::::4.~:::::~1~~~:::::::~n~~::
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.
Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate
Returns in Down Markets
09/30/1994
3Yr 5Yr 10 Yr Incept
[@W:t ?I[\(\\%*~~}}[::>~~~1:\}[:~:[:~~~~~::[:[:?[//:~~*~~[:
:~::::::::::::::::::::::::::~~~t :::::::::::::i1~~~::::::::::::::~1~~~:::::::::::::::::::~~:~!~:: ............................................. ······· ............... . ....................................................................
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I Palm Beach Gardens
General Employees Pension Plan
I Asset Allocation Through June 30, 2006
I At Market
Cash & Equiv
I 2%
I Fixed Income
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37%
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I Cash & Equiv
2%
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I Fixed Income
39%
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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 ran kings 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 .
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Palm Beach Gardens General Employees'
General Employees Pension Plan
Universe Comparisons
60% Pure Lg Cap Core & 40% High Quality Bond
Trailing Returns through June 30, 2006
Return
%-tile
Return
%-tile
1 Yr
5.51
40
4.71
60
2Yr
5.70
39
5.75
37
3Yr
7.42
43
7.45
42
4 Yr
5.80
59
7.06
19
5Yr
3.31
36
3.89
23
6Yr
3.77
21
2.39
34
7Yr
3.65
20
2.94
30
8Yr
4.41
20
4.38
21
9Yr
5.76
24
6.26
15
10 Yr
7.08
30
7.86
13
I ~Y:~~~~~~:::::::::::::~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
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5th %-tile 8.56 8.64 10.13 8.14 5.53 6.83 5.72 6.01 7.61 8.88
25th %-tile 6.38 6.34 8.12 6.76 3.73 3.09 3.21 4.14 5.70 7.21
50th %-tile 5.06 5.38 7.23 6.02 2.91 1.68 2.26 3.50 5.13 6.65
75th %-tile 4.10 4.65 6.41 5.20 2.08 0.62 1.53 2.90 4.50 6.00
95th %-tile 1.85 2.53 4.49 3.92 0.59 -1.94 0.16 1.70 3.40 4.75
Calendar Year Returns
Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998
:~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Return -1.09 1.59 3.98 8.33 14.87 -9.90 0.84 5.74 7.81 11.27
%-tile 55 42 49 28 90 45 9 16 84 92
Return -0.89 1.35 3.97 8.25 18.76 -9.53 -3.67 -0.92 11.40 21.35
%-tile 42 52 49 30 38 36 38 53 57 14
:ij~~:::::::::::::::::::::::::::::::::::::::::::~:::::::::::::::::::~:::::::::::::::::::::::::::::::::::::::::::::::::::~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
5th %-tile
25th %-tile
50th %-tile
75th %-tile
95th %-tile
0.41
-0.52
-1.02
-1 .78
-3.27
3.95
2.21
1.38
0.59
-1.78
7.78
5.07
3.95
3.31
1.46
10.61 22.15 -6.02
8.43 19.57 -8.97
7.53 18.17 -10.15
6.43
4.31
16.73
13.99
-11.58
-13.58
Returns are in percent. "%-tile" is the percentile ranking within the universe.
Returns for periods exceeding one year are annualized.
lnoept is September 30, 1994 to June 30, 2006
Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate
5
2.49
-2.72
-4.10
-5.12
-8.55
12.89 21 .77 23.85
3.21 13.94 20.05
-0.70 11.87 18.01
-2.41
-5.23
9.72
3.84
14.49
10.59
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Palm Beach Gardens General Employees'
Total Fixed Income
Executive Summary
Account Reconciliation
06/30/2006
Qtr
2006 09/30/1994
YTD Incept
:~Y#:!~W ?:Ctt/:J ~t ?//J:Atf tttt:t *~~::
~t.i~~~i~W$~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~d::::::~:~:::::~:::;i_1 ::~:::::::::::~:::~:~:::~:~~~~:
:~;wt~t~M~~J:::~:::::::~:::::::::::~:~:::~:~:::~:~~:~:~:::~:~:~:::::~::w~:::~:::::::::~:~:::~:~~~:: ·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·. :~~:v~@~tmt::::::r:::::::c~~Mr ura~Mt tttt %9.~£
Trailing Returns through June 30, 2006
1 Yr 2Yr 3Yr 4 Yr 5Yr
Calendar Year Returns
06/30/2006 2006
Investment Policy
Index Weight
09/3011994
6Yr 7Yr 8Yr 9 Yr 10 Yr Incept
Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997
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
~~/:~/7?ttU~WtttH~~~:t~:~:~r:~&:)ttt~::?f[t!~[:
: ~:: ~ ~ ~ ~: ~ ~ ~: ~ ~ ~ ~: ~ ~: ~ ~ ~ ~ ~ ~ :~~~~~: ~:::: ~::::: ~:: :~~~~: ~ :::: ~::::: ::::: ~~~~::::::::::::::: ~ ~:::: ~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
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Palm Beach Gardens General Employees'
Total Fixed Income
Universe Comparisons
High Quality Bond
Trailing Returns through June 30, 2006
1 Yr 2Yr 3Yr 4 Yr 5Yr 6Yr 7Yr 8Yr 9Yr
Return 0.18 2.90 1.49 3.79 4.19 5.44 4.76 4.51 5.15
10Yr
5.31
%-tile 40 27 68 38 46 36 54 53 45 49
~f.#!#.:::::::::::::::::::::::::::::::::::~:~:~:::::::::::::::::::::::::::::::::::::::::::::::::::;::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Return
%-tile
-1.11
80
2.99
23
1.74
51
4.48
14
5.22
9
6.19
9
5.91
8
5.50
5
6.13
3
6.29
6
j ij~~#.j~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
5th %-tile 3.52 3.46 2.88 4.94 5.37 6.33 6.01 5.47 6.04 6.30
25th %-tile
50th %-tile
75th %-tile
95th %-tile
1.40
-0.31
-1.01
-1.81
Calendar Year Returns
2.93
2.51
2.09
1.00
2.21
1.75
1.33
0.30
4.12
3.49
2.52
0.87
4.72
4.04
3.07
0.99
5.73
4.98
3.98
1.81
5.49
4.84
4.07
2.51
5.03
4.53
4.00
2.77
5.59
5.02
4.33
3.06
5.84
5.27
4.57
3.77
Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998
Return
%-tile
Return
0.10
45
-0.08
-0.32
49
-0.72
2.65
17
2.34
3.16
61
4.21
2.83
77
4.68
9.23
28
11.02
9.24
10
8.51
6.50
92
11.84
-1.37
73
-2.15
8.99
13
9.47
%-tile 59 68 29 34 35 4 21 1 0 84 5
:9-h~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
5th %-tile
25th %-tile
50th %-tile
75th %-tile
95th %-tile
1.01
0.49
0.03
-0.22
-0.54
2.02
0.91
-0.35
-0.83
-1.34
3.37
2.41
2.00
1.57
1.09
6.19
4.54
3.69
2.13
0.98
Retums are in percent. -%-tile-Is the percentile ranking within the universe.
Retums for periods exceeding one year are annualized.
Incept is September 30, 1994 to June 30, 2006
11.51
5.34
4.04
2.90
1.63
10.87
9.37
7.98
5.51
1.50
9.85
8.40
7.81
7.00
4.93
12.37
10.90
9.56
7.70
5.78
Sawgrass assumed fixed-10-26-05 $1,043,932.60-Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate
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4.61
1.75
-0.45
-1.46
-3.67
9.45
8.34
7.26
6.33
4.50
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Palm Beach Gardens General Employees'
Fixed Income & Cash-Sawgrass
Account Reconciliation
06/30/2006
Qtr
Executive Summary
Investment Policy
2006 1 0/26/2005
YTD Incept Index
Trailing Returns through June 30, 2006
1 Yr 2Yr 3Yr 4 Yr 5Yr 6Yr 7Yr 8Yr
Calendar Year Returns
06/30/2006 2006
Qtr YTD 2005 2004 2003 2002 2001
Weight
. 10/26/2005
9 Yr 10 Yr Incept
2000 1999 1998 1997
Returns in Up Markets Returns in Down Markets
1 0/26/2005 1 0/26/2005
Incept 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
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Palm Beach Gardens General Employees'
Fixed Income & Cash -Sawgrass
Universe Comparisons
High Quality Bond
Trailing Returns through June 30, 2006
Return
%-tile
Return
%-tile
2 Qtrs 3 Qtrs
-0.32
49
-0.72
68
1 Yr 2Yr 3Yr 4 Yr 5Yr 6Yr 7Yr 8Yr
~ Y:~~%~~: ~: ~: [::: [: ~: [: [: ~: ~: ~: ~: [: i: i: [: [: i: [: [: [: [: [ ::: [: [: [: i: ~: ~: [: [: [: ~: [: [: [: ~: ~: ~: ~: ~: ~::: [: ~::: ~: ~::: [: ~: i: [: [::: ~::::: [: ~::: :: ~:::::::: ::::: ~: ~: ~: ~::::::::::::::::: [::: ~:::: ::::::: [: [: [::: :::::: ~: ~::: ~: [: ~::::: ~: ~: i: ~::: i::: [::::::::::::::::::::::: :: [:: ::
5th %-tile 2.02 2.80 3.52 3.46 2.88 4.94 5.37 6.33 6.01 5.47
25th %-tile
50th %-tile
75th %-tile
95th %-tile
0.91
-0.35
-0.83
-1.34
Calendar Year Returns
1.31
0.18
-0.34
-0.94
1.40
-0.31
-1.01
-1.81
2.93
2.51
2.09
1.00
2.21
1.75
1.33
0.30
4.12
3.49
2.52
0.87
4.72
4.04
3.07
0.99
5.73
4.98
3.98
1.81
5.49
4.84
4.07
2.51
5.03
4.53
4.00
2.77
Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998
Return
%-tile
Return
0.10
45
-0.08
-0.32
49
-0.72
%-tile 59 68
5th %-tile
25th %-tile
50th %-tile
75th %-tile
95th %-tile
1.01
0.49
0.03
2.02
0.91
-0.35
3.37
2.41
2.00
1.57
1.09
6.19 11.51
-0.22
-0.54
-0.83
-1.34
4.54
3.69
2.13
0.98
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, 2006
Index change effective 111/2006 from LB Gov!Credlt to LB Aggregate
9
5.34
4.04
2.90
1.63
10.87
9.37
7.98
5.51
1.50
9.85
8.40
7.81
7.00
4.93
12.37
10.90
9.56
7.70
5.78
4.61
1.75
-0.45
-1.46
-3.67
9.45
8.34
7.26
6.33
4.50
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Palm Beach Gardens General Employees'
Total Equity
Executive Summary
Account Reconciliation
06/30/2006
Qtr
2006 09/30/1994
YTD Incept
i~~¥~!~~~:~:~:~:~:~:~:::::~:~~:~1-~t¥:::~:~:::~:::~~~::::::::::::~:::~:~:::~~~::
:~~f~!#.#.ttr:c:r:tm:uuu a K tttcoo r::r:r::r:~~::
:m~:~~h [i[H\:[H?UU :1V U::::::::u:&:::::?f/j ~&:f
:~~Y~!~ .. ~::::::::::::::::~:::::::~:::~:~~~t~:~:::::::~~:~:141:~::::::::::::::::~~ti!:1.~::
Trailing Returns through June 30, 2006
1 Yr 2Yr 3Yr 4 Yr 5Yr
Calendar Year Returns
06/30/2006 2006
Investment Policy
Index Weight
l ill1 II .·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·
09/30/1994
6Yr 7Yr 8Yr 9 Yr 1 0 Yr Incept
Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997
............... ·········· ... . . . ........ ············ .......................... ·············· ................. ' ........................ . . .. .. ····· ........ ... ..... .. . ................................................ ··············· ................. ····· ... ············ ..... . :r~~\/ff//i/hfff \/lt t //C ~i~f :/}~:~:::::/~*~~HH:¥~m :::m:~~l M //H~fM //i ~~~~t::::*~f~~f /i ~~~~f
:t;~:::::::::::::::::~:::::::::::::::::::~~~:::::::::::~:~:Q ::::~:::::~:$::::::::::::~,~::::::::::~$;~~::::::::::::1 :.w.::::::::::::t~~::~::::::1 (4Q::~:::~:~::~r:~:::::~1~::~~:~:::::J.;~$~:
Returns in Up Markets Returns in Down Markets
09/30/1994 09/30/1994
3Yr 5Yr 10 Yr Incept 3Yr 5Yr 10 Yr Incept
~t~#r rrr:<:::r j r:;~::::::::t>#.~~>>>>?.~~~:::::::::::::::::~:::~~;~:: :F§~\H::C/}fH~W ///~~~f*t:::::::?~~i ?tt:r:::~¥:~:jf :~~:::::::::::::::::::::::::1:#8 ::::::::::::::::~~;:~::::::::::::::::#.~~~::::::::::::::::::::#:i : :~~:::::::::::::::::::::::::~~;~::::::::::::::~~~~~::::::::::::::~~~~~::::::::::::::::::+~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
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Palm Beach Gardens General Employees'
Total Equity
Universe Comparisons
Pure Large Cap Core
Trailing Returns through June 30, 2006
Return
%-tile
Return
%-tile
5th %-tile
25th %-tile
50th %-tile
75th %-tile
95th %-tile
1 Yr
8 .80
40
8.63
43
13.98
10.46
8.40
6.83
2.83
Calendar Year Returns
Qtr
2Yr
7 .34
50
7.47
47
12.63
9.21
7.30
6.15
2.58
YTD
3Yr
10.97
49
11 .22
40
15.57
12.69
10.94
9 .46
6 .37
2005
4Yr
6.53
76
8.37
36
11.26
9.03
7.91
6.60
4.46
2004
5 Yr
2.30
50
2.49
45
6.53
3.75
2.27
1.14
-1.57
2003
6Yr
2.37
27
-0.62
50
7.99
2.82
-0.64
-1 .99
-6.49
2002
7Yr
2.64
23
0.47
49
6.23
2.32
0.39
-0.37
-2.83
2001
8Yr
4.07
25
3.02
43
6.95
3.96
2.84
1.96
-0.15
2000
9Yr
5.85
32
5.73
35
9 .27
6.16
5.39
4.31
2.45
1999
10Yr
7.79
48
8.32
28
11 .21
8.39
7.70
6.64
4.47
1998
I l~¥~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~: ~ ~: ~: ~: ~: ~ ~::::::: ~: ~: ~: ~: ~: ~: ~: ~ ~ ~:: ~: ~: ~::: ~: ~::: ~::: ~ ~::::: ~::::: ~:: ~::: ~:: ~ ~: ~ ~ ~ ::::::: ~::: ~:: ~ :: ~:: :~: ~::: ~::::::::::::::::::::::::::::::::: ::::::: :~: ~:::: ::::::::::::::::::::::::::::::::::::::: ~::::::::: ~::: ~:::: ~ ~:::: ~ ~: ~ ~:: ::
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Return
%-tile
Return
%-tile
-1 .80
55
-1.44
38
2.81
36
2.71
39
4.52
67
4.91
55
11.44 22.83 -21.03
26 87 34
-4.42
9
10.88 28.68 -22.10 -11.88
34 29 46 48
5.29
12
14.26
81
12.39
97
-9.11 21 .04 28.58
60 38 24
··············· .............................. ············ ······························· ······ ········· ··············· .................. . ~~~~~::::::::: ::::::::::: ~::::::::: ~:::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ~ ~::: ~: ::::::::::::::::::::::::::: ~::::::::: ~::: ~: ~ ~ ~ ~:::::::::::::: ~ :::::::::: :~ ::
11 .33 15.14 33.34 -15.55 -1.49 5th %-tile
25th %-tile
50th %-tile
75th %-tile
0.56
-0.92
6.43
3.36
2.53
1.05
7.20
5.09
4.22
1.07
11.51 28.99 -20.13 -9.35
-1.60 10.39 27.83 -22.23 -12.08
-3.17
95th %-tile -5.59 -3.06
8.38
5 .14
Returns are In percent. "%-tire• is the percentile ranking within the universe.
Returns for periods exceeding one year are annualized .
Incept Is September 30, 1994 to June 30, 2006
Rockwood assumed account 10-2~5 $ 1,565,898.88
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24.97
20.58
-23.39
-26.60
-13.51
-19.10
13.61 35.03 34.74
-0.20 22.80 28.47
-7.39 20.27 25.44
-9.63
-14.67
16.39
6.13
18.85
13.04
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Palm Beach Gardens General Employees'
Equity & Cash -Rockwood
Executive Summary
Account Reconciliation
06/30/2006
Qtr
2006 1 0/26/2005
YTD Incept
Trailing Returns through June 30, 2006
1 Yr 2Yr 3Yr 4 Yr 5Yr
Calendar Year Returns
06/30/2006 2006
Investment Policy
Index Weight
II < jj~~
fl :: ! : ilil!li ?Ill
10/26/2005
6Yr 7Yr 8Yr 9 Yr 1 0 Yr Incept
Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997
Returns in Up Markets
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
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10/26/2005
Incept
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Palm Beach Gardens General Employees'
Equity & Cash -Rockwood
Universe Comparisons
Pure Large Cap Core
Trailing Returns through June 30, 2006
Return
%-tile
Return
%-tile
5th %-tile
25th %-tile
50th %-tile
75th %-tile
95th %-tile
2 Qtrs 3 Qtrs
2.81
36
2.71
39
6.43
3.36
2.53
1.05
-3.06
8.42
5.96
4.63
3.24
0.18
1 Yr 2Yr
13.98 12.63
10.46 9.21
'
8.40 7.30
6.83 6.15
2.83 2.58
3Yr 4 Yr 5Yr 6Yr 7Yr
15.57 11.26 6.53 7.99 6.23
12.69 9.03 3.75 2.82 2.32
10.94 7.91 2.27 -0.64 0.39
9.46 6.60 1.14 -1.99 -0.37
6.37 4.46 -1.57 -6.49 -2.83
8Yr
6.95
3.96
2.84
1.96
-0.15
I Calendar Year Returns
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Return
%-tile
Return
%-tile
5th %-tile
25th %-tile
50th %-tile
75th %-tile
95th %-tile
-1.80
55
-1.44
38
0.56
-0.92
-1.60
-3.17
-5.59
2.81
36
2.71
39
6.43
3.36
2.53
1.05
-3.06
11.33 15.14 33.34 -15.55 -1.49
7.20 11.51 28.99 -20.13 -9.35
5.09 10.39 27.83 -22.23 -12.08
4.22
1.07
8.38
5.14
24.97
20.58
-23.39 -13.51
-26.60 -19.10
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, 2006
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13.61 35.03 34.74
-0.20 22.80 28.47
-7.39 20.27 25.44
-9.63
-14.67
16.39
6.13
18.85
13.04
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Fund(%)
Policy(%)
-------------------------------
Palm Beach Gardens Ge ne ral Employees'
General Employees Pension Plan
20.00o/o -------------------------------------
15.00% ------------
10.00%
5.00%
0.00%
11.26 13.44 16.63 16.67
11.38 15.32 18.82 18.99
Difference (%) -0.12 -1.88 -2.19 -2.32
Ratio 98.95 87.73 88.36 87 .78
Qtrs 9.00 13.00 28.00 35.00
0.00%
Down Market Returns
-5.00%
-10.00%
-15.00%
Fund(%) -2.49 -13.15 -12.27 -12.27
Policy(%) -2.66 -14.41 -13.94 -13.94
Difference (%) 0.17 1.26 1.67 1.67
Ratio 93.61 91.26 88.02 88.02
#Down Qtrs 3.00 7.00 12.00 12.00
I D Fund(%) • Policy(%) I
Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate
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Palm Beach Gardens General Employees'
General Employees Pension Plan
Objective Comparison
$4,00U~-----------------------------------,
$3,50C -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
~ ~ ~
$3,000 ----------------------------------------------------------------------------------------------------~------------------------------------------------------------
-_,--,--
---
$2,500 __________________________ r----,--
~ -v ..f}--
01 ..., ..., .-A ..., . ~ . " ..c:l--£) ~ ..-.~B~ ~~B ~ ~~~~ ~~ $2,000 -~ --= -~ ---~ --t.:.J --------~ ----
$1 ,500
$1,000
$500
$ I I I _l_ _l_ _l_ _l_ _L I .J _L
"' J01 501 001 M02 J02 502 002 M03 J03 503 003 M04 J04 504 004 M05 J05 505 005 M06 J06
Quarter Ending
D Fund *-Policy
+ Nominal 8% --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
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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.
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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
.·.·:·.·>.·>.·>.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·:-.-:·:·.·.·.·.·:·:-.
Policy ~~/~(U~~~~~~f ~~\~~~~
-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-
1"35 ~~H/CH~~H~~/~)~}{(l//~~~~~~
-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: .·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.··::h·&!;iio "·
3 .89 :::::::::::::::::::::::::::::::::::::::::::::::::::::::~:~:-.................................. ·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
7.86 ~: ~: ~: ~: :: ~: ~: ~::::: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~~~?:~:: .................................. ...... ............. .. ............. . ·································· ...... ····························· ........ ·························· ... ································ ..................................
9.55 ~: ~: ~::: ~::: ~: ~::::: ~: ~: ~: ~::: ~: ~: ~: ~: ~::: ~: ~: ~:::::~:A~~!:~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. .................... ..... . . .. .. . .. ............. .......... .. . ... . .............................. .
Fund
-1 .09
1.59
7.42
3.31
7.08
8.48
Attribution of Manager Contribution between Asset Allocation and Security Selection
Asset Allocation
Current Quarter 0.38
Year to Date -0 .46
3Years -3.02
5 Years -1.87
10 Years -3.46
Incept -4.24
Asset Allocation + Security Selection = Manager Contribution
Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate
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:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
:-:-:-:-:-:-:-:-:-:-:-:·:·:·:·:·:·:·:·:·:·:·:·:·:·:·:-:-:-:-:-:-:-:·:
::::::::::::::::::::::::::::::::::::::::::.:::::::::.;-:::::::.::::::
-0.58 :::::: ~: ~::: ~: ~: ~: ~: ~: ~: ~: ~::::::::::::::::: ~: ~: ~: ~: ~: ~~;~~:: .................... ·············· ...................... ············· .............. ···················· ..................... ··············
·································· ................................... ............. ···················· . ... ... . ..... ·············· ........ .
-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
2 .99 ::: ~: ~: ~: ~: ~: ~: ~: ~: ~: :: ~: ~::: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~: ~ :~;~~~:
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
1.29 : ~: ~::::: ~: ~::::::: ~: ~: ~::::: ~: ~: ~: ~::: ~: ~: ~: ~: ~::: ~: ~ :~;~~:
:::::::::::::::::::::::::::::::::::::;:::::::::::::::::::::::::::::::
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::·
2.68 ::::::::::::::::::::::::::::::::::::::::::::::::::::::::;t;;7.£f :
-:-:-:-:-:·:-:-:-:-:·:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-: ·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
-:-:-:-:-:-:·:·:·:·:·:·:·:·:·:·:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:·
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Palm Beach Gard _ens General Employees'
General Employees Pension Plan
Asset Allocation Effect
10.00% r------------------------------------,
r 5.00o/o -----------------------------------------------------------------------------------------------------------------------------------------------------------------c
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: 0.00%
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-5 .00% S01 001 M02 J02 S02 002 M03 J03 S03 003 M04 J04 S04 004 M05 J05 S05 005 M06 J06
Quarter Ending
Security Selection Effect
10.00% ,-----------------------------------,
5.00%
0 .00%
-5 .00% S01 001 S05 005 M06 J06
Quarter Ending
I • Quarterly Effect -Cumulative Effect I
Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate
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Palm Beach Gardens General Employees'
General Employees Pension Plan
Asset Allocation vs Targets
JVJ'.,j-•••••••••••••••••••••••···••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
~ •nrutr· ···· · ~ · ·-·· · ·---·-·-· ·-· · ·· · · · ·-------· · ·------------·--------·-· ·----------------------------------·· ----· ·---·-· --------------------------· -------· ------------· ----------
Quarter Ending
I • Cash & Equiv *-Target
J03 S03 003 M04 J04 S04
Quarter Ending
I • Equity *-Target I
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ao ,ooolcnr------------------------------------,
70.00o/c -~--~--~~~----------·--·-------------------------------------------------------------------------------------------·--------------------------------------------------------
60.00o/c ------------··--·-----------------------------------------------------------------------------------------------·-----------·-············------·-·--------·---------···----
50. OOo/c -·--~ -----·-·--· · · · · · ·-· ·---· · ·--·-------------------------· ----------·--· ·-· ~-· ---~--~------------~-·-·-· · · · ··--~-----~ ~-~-~--· ·-· · · ·--· · -----------· ·-~ ·-~ .. --.-.------.--
-=-,----~ 40.00o/cH11E9--F*'=t--*-----l1E---Hf+-t->IE-I-+liH--Flli!=!--_'""*--*-~~-*--==*="-r=--*-~,.......~-:::~~--""*"-*--_->1E---*_ r--,--r--,--r--r--,-----r--r--
30.00o/c
20.00o/c
10.00°/c
O.OO% S01 001 M~2 J~2 S02
__j_ _j_ __j_ __j_ __j_
002 M03 J03 S03 003 M04 J04
Quarter Ending
I 0 Fixed Income *-
Index change effective 1/1 /06 from LB Gov/Credit to LB Aggregate
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_l __j_
S04 004 M05 J05 S05 005 M06 J06
Target I
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4.00%
3.00%
2.00%
1.00%
0.00%
Palm Beach Gardens General Employees'
General Employees Pension Plan
Manager Contribution
---·-----------------------------------------------------------------------------------------------------------------------------------------------------------------1
-1.00o/o -----------------------------------------
-2.00%
Growth of $100 Fund vs Policy
$1~----------~--------------------------------------------------~
$
004 M05 J05 505 005 M06 J06
Quarter Ending
I 0 Fund -8-Policy I
Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate
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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
Dec2001 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
Sep2002 2,397 2,540 -144 2,305 92 2,041
Dec2002 2,434 2,655 -221 2,313 121 2,024
Mar2003 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/Creclit to LB Aggregate
21
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
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Palm Beach Gardens General Employees'
General Employees Pension Plan
Quarterly Comparison Analysis ($)
Period Fund Policy Ending
Dec2003 2,680 3,036
Mar 2004 2,741 3,094
Jun 2004 2,717 3,068
Sep 2004 2,674 3,045
Dec 2004 2,805 3,188
Mar 2005 2,745 3,112
Jun 2005 2,717 3,117
Sep 2005 2,740 3,148
Dec 2005 2,779 3,177
Mar 2006 2,812 3,206
Jun 2006 2,765 3,162
: I All dollar values are shown in thousands.
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Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate
Diff Nominal8%
-356 2,388
-352 2,424
-351 2,453
-371 2,469
-383 2,483
-367 2,504
-400 2,490
-408 2,513
-398 2,541
-394 2,549
-396 2,581
22
Diff
292
317
263
205
321
240
228
227
238
264
184
CPI +4%
2,035
2,077
2,105
2,096
2,088
2,115
2,087
2,129
2,109
2,121
2,159
Diff
645
664
611
578
717
630
630
611
671
691
606
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Period
Ending
Dec 1994
Mar 1995
Jun 1995
Sep 1995
Dec1995
Mar 1996
Jun 1996
Sep 1996
Dec 1996
Mar 1997
Jun 1997
Sep 1997
Dec1997
Mar 1998
Jun 1998
Sep 1998
Dec 1998
Mar 1999
Jun 1999
Sep 1999
Dec 1999
Mar 2000
Jun 2000
Sep 2000
Dec2000
Mar 2001
Jun 2001
Sep 2001
Dec 2001
Mar 2002
Jun2002
Sep2002
Dec 2002
Mar 2003
Jun 2003
Sep2003
Dec2003
Palm Beach Gardens General Employees'
General Employe es Pension Plan
Quarterly Comparison Analysis (%)
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.n 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.n 1.59
6.80 3.n 3.03 1.94 4.86 1.69
-4.78 -3.56 -1.22 1.94 -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
23
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
-a .n
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
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Palm Beach Gardens General Employees'
General Employees Pension Plan
Quarterly Comparison Analysis (0/o)
Period Fund Policy Diff Nominata% Diff Ending
Mar 2004 2.67 2.25 0.42 1.94 0.73
Jun 2004 -0.24 -0.25 0.01 1.94 -2.18
Sep 2004 -0.38 0.30 -0.68 1.94 -2.32
Dec2004 6.17 5.82 0.35 1.94 4.23
Mar2005 -1.19 -1.54 0.35 1.94 -3.13
Jun 2005 1.32 2.21 -0.89 1.94 -0.62
Sep2005 1.75 1.79 -0.04 1.94 -0.19
Dec 2005 2.07 1.50 0.57 1.94 0.13
Mar 2006 2.71 2.25 0.46 1.94 0.77
Jun 2006 -1.09 -0.89 -0.20 1.94 -3.03
Incept. 8.48 9.55 -1.07 8.00 0.48
I Returns for periods exceeding one year are annualized.
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Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate
24
CPI +4%
2.59
2.19
1.08
1.18
2.59
1.69
3.20
-0.01
2.59
2.59
6.63
Diff
0.08
-2.43
-1.46
4.99
-3.78
-0.37
-1.45
2.08
0.12
-3.68
1.85
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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-5quared: If the policy is appropriate, then the alpha should be positive, the beta close to one, and the
r-squared should be high. Beta measures risk relative to the policy. A beta of 1 suggests risk equivalent to the policy.
Higher betas indicate higher relative risk . A beta of 1.2 indicates 20% more risk than the policy. The alpha measures the
return adjusting for beta . The higher the alpha, the better. R-squared measures the relationship between the policy and
the fund . A high r-squared means the returns of the fund can largely be explained by movements of the policy. The
higher the r-squared, the more reliable the alpha and the beta. R-squared may range from 0 to 100. Beta, alpha and
r-squared are derived from regression analysis using the fund and policy returns as the dependent and independent
variables respectively. Roughly, one would expect the fund's performance to equal the return of the policy multiplied by
the beta plus the alpha.
Sharpe Ratio/Treynor Ratio: The Sharpe and Treynor ratios are similar. The Sharpe ratio is the excess return per unit
of total risk as measured by standard deviation . The Treynor ratio is the excess return per unit of market risk as
measured by beta. Both of these should be compared against the corresponding value for the policy. Higher numbers
are better, indicating more return for the level of risk that was experienced.
25
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Palm Beach Gardens General Employees'
General Employees Pension Plan
Risk Measures
:~Y:r::::::;:::;::::::::::::::::::::::::::::::::::: ::::::::::fumf: ::::::;::~~: :::::::>:::::Dirt:: ........... . . . . . . . . . . . .
·s:v · ...................... :;:;:;:::::F.un:d:: ·····~ : ... : .. :r.::::::::::::::::::::::;:::::;:::;:;:;:;:::::: .... ..
........... -:-:-:-:-.-:-.... -:
# of Negative Qtrs 4.00 3.00 1.00 # of Negative Qtrs 8.00 7.00
# of Positive Qtrs 8.00 9.00 -1.00 # of Positive Qtrs 12.00 13.00
Batting Average 50.00 50.00 0.00 Batting Average 50.00 50.00
Worstatr -1.19 -1.54 0.35 WorstQtr -7.51 -8.45
Best Qtr 7.08 7.21 -0.13 Bestatr 7.62 10.56
Range 8.27 8.75 -0.48 Range 15.13 19.01
Worst4 Qtrs 3.98 3.97 0.01 Worst4 Qtrs -11.63 -10.68
Standard Deviation 5.40 4.75 0.65 Standard Deviation 6.84 7 .74
Beta 1.08 1.00 0.08 Beta 0.83 1.00
Annualized Alpha -0.38 0.00 -0.38 Annualized Alpha -0.29 0.00
R-5quared 0.90 1.00 -0.10 R-5quared 0.89 1.00
Sharpe Ratio 0.95 1.08 -0.13 Sharpe Ratio 0.17 0.22
Treynor Ratio 4.73 5.14 -0.41 Treynor Ratio 1.39 1.73
Tracking Error 1.73 0 .00 1.73 Tracking Error 2.62 0.00
Information Ratio -0.02 Information Ratio -0.22
· ::1o:vr::::::::::::::::::::::::::::::::::::::::::: :::::::>:Fu:mt :::::::::~: :::::::::::::::olrt:: : ti':icepi :: :::::::::::::::::::::::::::::::::::::: ::::::::::f.UO.d:: ::::: }PQi.fcy :
# of Negative Qtrs 14.00 12.00 2 .00 # of Negative Qtrs 15.00 12.00
# of Positive Qtrs 26.00 28.00 -2.00 # of Positive Qtrs 32.00 35.00
Batting Average 42.50 57.50 -15.00 Batting Average 40.43 59.57
Worstatr -7.51 -8.45 0 .94 Worst Qtr -7.51 -8.45
Best Qtr 11 .16 12.51 -1 .35 Best Qtr 11.16 12.51
Range 18.67 20.96 -2 .29 Range 18.67 20.96
Worst4 Qtrs -11.63 -12.21 0.58 Worst4 Qtrs -11 .63 -12.21
Standard Deviation 8.31 9.42 -1.11 Standard Deviation 7.94 8.94
Beta 0 .81 1.00 -0.19 Beta 0 .81 1.00
Annualized Alpha -0.01 0.00 -0.01 Annualized Alpha 0.03 0.00
R-5quared 0.85 1.00 -0.15 R-5quared 0.83 1.00
Sharpe Ratio 0.41 0.44 -0.03 Sharpe Ratio 0.57 0.63
Treynor Ratio 4.20 4 .18 0.02 Treynor Ratio 5.59 5 .60
Tracking Error 3.65 0 .00 3.65 Tracking Error 3.72 0.00
Information Ratio -0.21 Information Ratio -0.29
Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate
26
:::::::::;:;::piff
1.00
-1 .00
0.00
0.94
-2.94
-3.88
-0.95
-0.90
-0.17
-0.29
-0.11
-0.05
-0.34
2.62
::::::::::::::oift :
3.00
-3.00
-19.14
0.94
-1.35
-2.29
0.58
-1.00
-0.19
0.03
-0.17
-0.06
-0.01
3.72
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Palm Beach Gardens General Employees'
General Employees Pension Plan
Return vs Risk through June 30, 2006
12.00% .----------------.------------------,
11.00%
10.00%
A 9.00%
n
n
u
a
1 8.00%
i
z
e
d
R
e
t
u
7.00%
r 6.00%
n
5 .00%
4.00% *
3MoTBill
* LB Gov/Corp
* Func
*s&P 5oo
3·00o/6 .0':-:0°A-:-o ------5---=.o:-':-10::-:-%----------'--1-0-L.~--oA-o ------15---'.~~oo-=--yo ______ 2___.0.00%
Risk (Annualized Std Dev)
I-t-Policy I
Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate
27
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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 June 30, 2006
3 Years 5 Years
6.00%
5.50%
5.00% *LBG ov/Corp
*s&P
R 4.50%
500 e
t 4.00% u 1--
r
Fund n 3.50%
s *f und
3.00%
*3MoTBill
1LB qov/qorp 1 I I I I
2.50%
0.00% *s&P 500
1.00% 3.00% 5.00% 7.00% 9.00%
0.00% 2.00% 4.00% 6.00% 8.00%
Risk (Annualized Std Dev)
10.00%
9 .00%
8.00%
R 7.00% e
t
u 6.00%
r
n
s 5.00%
4.00%
10 Years
*s&P500
*I und
* LBGov Corp
~3MoTBill
3.00% I 1 l I
5.00% 15.00%
0.00% 10.00% 20 .00%
Risk (Annualized Std Dev)
25.00%
R
e
t
u
r
n
s
!+Policy I
Index change effective 1/1/06 from LB Gov/Credit to LB Aggregate
28
i;+E ~ UnTRill I I
5.00% 10.00% 15.00% 20 .00 °/c
Risk (Annualized Std Dev)
Inception
12.00%
11 .00%
*s&P 500
10.00%
--
9.00%
8.00% *F und
7.00%
* ;orp LB Gov/
6.00%
5.00%
4.00% * . 3MoTBrll
3 .00~.00% I I I
5.00% 10.00% 15.00% 20 .00 o/c
Risk (Annualized Std Dev)
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Palm Beach Gardens General Employees'
General Employees Pension Plan
Policy:
First Objective:
Second Objective:
Universe Data:
09/30/1994-12/31/2005
0 1/0 1/2006-06/30/2006
09/30/1994-06/30/2006
09/30/1994-06/30/2006
60.00 S&P 500
40.00 Lehman Gov/Credit Bond
60.00 S&P 500
40.00 Lehman Aggregate Bond
Annual Return of8.00%
100.00 US Consumer Price Index
+ 4.00 annual adder
60% Pure Lg Cap Core & 40% High Quality Bond
09/30/1994-06/30/2006 40.00 High Quality Bond
60.00 Pure Large Cap Core
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CONTRIBUTIONSIWITHDRA W ALS
Palm Beach Garden General Employees '
I Combined Account
From 04-01-06 To 06-30-06
Tran Trade Settle Broker
I Code Da te Date Security Amount Qua ntity Code C ommission
C O NTRIBUTIONS
li 04-03-06 04-03-06 Cash 11,258.15
I Transfer in
li 04-03-06 04-03-06 Cash 7,505.44
Transfer in
li 04-03-06 04-03-06 Cash 19,848.00
I ER
li 04-04-06 04-04-06 Cash 11,908.80
Transfer from RID account
li 04-04-06 04-04-06 Cash 7,939.20
Transfer from RID account
I li 04-07-06 04-07-06 Cash 567.51
EE
li 04-11-06 04-11-06 Cash 71624
Transfer in
I li 04-11-06 04-11-06 Cash 716.25
Transfer in
li 04-19-06 04-19-06 Cash 549.48
Transfer in
I li 04-19-06 04-19-06 Cash 549.48
Transfer in
li 04-21-06 04-21-06 Cash 712.37
EE
li 04-21-06 04-21-06 Cash 427.42
I Transfer from RID account
li 04-21-06 04-21-06 Cash 284.95
Transfer from RID account
li 05-01-06 05-01-06 Cash 11,259.11
I Transfer from equtiy account
li 05-01-06 05-01-06 Cash 7,506.07
Transfer from fixed income acct
li 05-05-06 05-05-06 Cash 568.31
I EE
li 05-05-06 05-05-06 Cash 340.99
Transfer for investment
li 05-05-06 05-05-06 Cash 227.32
I Transfer for investment
li 05-19-06 05-19-06 Cash 583.03
EE
li 05-19-06 05-19-06 Cash 349.82
Transfer for investment
I li 05-19-06 05-19-06 Cash 23321
Transfer for investment
li 05-26-06 05-26-06 Cash 119.86
Transfer to pay invoices
I li 05-26-06 05-26-06 Cash 119.86
Transfer to pay invoices
li 06-01-06 06-01-06 Cash 11,259.11
Transfer in
I li 06-01-06 06-01-06 Cash 7,506.07
Transfer in
li 06-01-06 06-01-06 Cash 580.55
EE
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Tran Tra de
Code Date
li 06-02-06 I
li 06-02-06
li 06-16-06 I
li 06-19-06
li 06-19-06 I
li 06-23-06
I li 06-23-06
li 06-23-06
I li 06-23-06
WITHDRAWALS
lo 04-03-06 I
lo 04-03-06
lo 04-03-06 I
lo 04-03-06
I to 04-04-06
lo 04-04-06
I to 04-10-06
lo 04-10-06
I lo 04-11-06
lo 04-11-06
to 04-11-06
lo 04-19-06 I
1o 04-19-06
lo 04-19-06 I
lo 04-21-06
lo 04-21-06 I
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Bogdahn Consulting, LLC.
CONTRIBUTIONSIWITHDRA W ALS
Palm Beach Garden General Employees '
Combined Account
From 04-01-06 To 06-30-06
Settle
Date Seeurity Amount Quantity
06-02-06 Cash 348.33
Received for investment
06-02-06 Cash 232.22
Transfer for investment
06-16-06 Cash 580.55
EE
06-19-06 Cash 348.33
Received for investment
06-19-06 Cash 232.22
Transfer for investment
06-23-06 Cash 19,848.00
ER
06-23-06 Cash 647.58
EE
06-23-06 Cash 11,908.80
Received for investment
06-23-06 Cash 7,939.20
Transfer for investment
145,721.83
04-03-06 Cash 16,971.88
Benefit payments
04-03-06 Cash 1,793.30
W IH tax on benefit payments
04-03-06 Cash 11,258.15
Transfer to RID .account
04-03-06 Cash 7,505 .44
Transfer to RID account
04-04-06 Cash 11,908.80
Transfer to Rockwood account
04-04-06 Cash 7,93920
Transfer to Sawgrass account
04-10-06 Cash 470.40
Custodial market value fee
04-10-06 Cash 279.60
Custodial market value fee
04-11-06 Cash 2,000.00
BC for period ending 3/31/06
04-11-06 Cash 71624
Transfer to RID account
04-11-06 Cash 71625
Transfer to RID account
04-19-06 Cash 1,098.96
C&D
04-19-06 Cash 549.48
Transfer to RID account
04-19-06 Cash 549.48
Transfer to RID account
04-21-06 Cash 427.42
Transfer to Rockwood account
04-21-06 Cash 284.95
Transfer to Sawgrass account
2
Broker
Code Commission
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CONTRIBUTIONSIWITHDRA W ALS
Palm Beach Garden General Employees'
I Combined Account
From 04-01-06 To 06-30-06
Tran Trade Settle Broker
I Code Date Date Security Amount Quantity Code Commission
lo 04-25-06 04-25-06 Cash 25 .65
Foreign tax on Canadian Pacific Railway
I lo 0~1-06 05-01-06 Cash 16,971.88
Benefit payments
lo 05-01-06 05-01-06 Cash 1,793.30
W IH tax on benefit payments
I lo 05-01-06 05-01-06 Cash 11,259.11
Transfer to r/d account
1o 05-01-06 05-01-06 Cash 7,506.07
Transfer to RID account
lo 05-02-06 05-02-06 Cash 298.43
I Foreign tax on Volvo AB
lo 05-02-06 05-02-06 Cash 2.76
ADR fee on Volvo dividend
lo 05-05-06 05-05-06 Cash 340.99
I Transfer to equity acct
lo 0~5-06 05-05-06 Cash 227.32
Transfa to fixed income acct
1o 05-19-06 05-19-06 Cash 349.82
I Transfa to equity acct
lo 05-19-06 05-19-06 Cash 233.21
Transfer to fixed income acct
lo 05-26-06 05-26-06 Cash 242.13
C&D
I lo 05-26-06 05-26-06 Cash 119.86
Transfer to RID account
lo 05-26-06 05-26-06 Cash 119.86
Transfa to RID account
I lo 06-01-06 06-01-06 Cash 16,971.88
Benefit payments
lo 06-01-06 06-01-06 Cash 1,793.30
W IH tax on benefit payments
I lo 06-01-06 06-01-06 Cash 11,259.11
Transfec to RID account
1o 06-01-06 06-01-06 Cash 7,506.07
Transfer to RID accoount
I lo 06-02-06 06-02-06 Cash 348.33
Transfer to Rockwood account
lo 06-02-06 06-02-06 Cash 232.22
Transfer to Sawgrass account
lo 06-19-06 06-19-06 Cash 348.33
I Transfa to Rockwood account
lo 06-19-06 06-19-06 Cash 232.22
Transfa to Sawgrass account
lo 06-23-06 06-23-06 Cash 11,908.80
I Transfa to Rockwood account
1o 06-23-06 06-23-06 Cash 7,939.20
Transfer to Sawgrass account
162,499.40
I EXPENSE ACCOUNTS
0.00
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Bogdahn Consulting, LLC.
CONTRIBUTIONSIWITHDRA W ALS
Palm Beach Garden General Employees'
Combined Account
From 04-01-06 To 06-30-06
Tran Trade
Code Date
Settle
Date Security
AFTER FEE PERFORMANCE EXPENSE ACCOUNTS
Amount
dp 04-07..06 04-07..06 Administration Fee 930 .00
Quarterly management fee to Sawgrass Asset Management
dp 04-17..06 04-17..()6 AdministrationFee 3,073.62
Quarterly management fee to Rockwood Capital Advisors
PORTFOLIO NET TOTAL
EXPENSE ACCOUNTS PAID BY CLIENT
AFTER FEE PERFORMANCE EXPENSE
ACCOUNTS PAID BY CLIENT
GRAND TOTAL
4
4,003 .62
-:ZO, 781.19
0 .00
0 .00
-20,781.19
Quantity
Broker
Code Commission
I ~
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PORTFOLIO APPRAISAL
Palm Beach Garden General Employees'
I Combined Account
June 30, 2006
(Excluding Reinvested Divs.)
I Unit Total Market Pet.
Quantity Seeurity Cost Cost Price Value Gain/Loss Assets
DOMESTIC EQUITIES
Common Stock
I
Large Cap
925.000 At1ac Inc. 47.23 43,690.71 46.35 42,873.75 -816.96 1.6
650.000 BOEING CO COM 64.47 41,906.41 81.91 53,241.50 ll,335.09 1.9
825 .000 CIT Group 54.92 45,308.26 52.29 43,139.25 -2,169.01 1.6
140.000 Canadian Pacific Ud 41.53 5,814.20 51.14 7,159.60 1,345.40 0.3
I 760.000 Caterpillar Inc 49.83 37,871.18 74.48 56,604.80 18,733.62 2.0
660.000 Halhlnn1on Co. 55.46 36,602.41 74.21 48,978.60 12,376.19 1.8
1,345.000 Hewlett Packard Co 32.33 43,477.39 31.68 42,609.60 -867.79 1.5
640.000 Lockheed Martin Corp. 60.12 38,478.59 71.74 45,913 .60 7,435.01 1.7
I 1,275.000 LoewsCorp. 29.94 38,17227 35.45 45,198.75 7,026.48 1.6
1,165.000 MEDIMMUNE INC 35.32 41,147.80 27.10 31,571.50 -9,576.30 1.1
COM
1,075.000 PG&ECorp. 35.89 38,583.79 39.28 42,226.00 3,64221 1.5
I 565 .000 Prudential Financial Inc 78.05 44,095.59 77.70 43,900.50 -195.09 1.6
1,720.000 Safeway Inc. COM 22.29 38,341.72 26.00 44,720.00 6,378.28 1.6
1,340.000 Texas Instruments 33.48 44,859.98 30.29 40,588.60 -4,271.38 1.5
538,350.30 588,726.05 50,375.75 21.3
I Mid Cap
1,040.000 Apartment Inventory & 36.91 38,390.98 43.45 45,188.00 6,797.02 1.6
Management Co -Reit
590.000 Brown Forman Corp. 74.52 43,967.27 71.45 42,155.50 -1,811.77 1.5
I ClassB
1,195.000 Chesapeake Energy 31.29 37,391.67 30.25 36,148.75 -1,242.92 1.3
Corp.
3,240.000 EIPasoCorp 11.72 37,972.80 15 .00 48,600.00 10,62720 1.8
I 920.000 FISERV INC COM 43 .76 40,259.57 45.36 41,731.20 1,471.63 1.5
1,355.000 HCC Insurance 28.00 37,945.69 29.44 39,891.20 1,945.51 1.4
Holdings Inc Com
970.000 Hemy Schein Inc. 45.52 44,158.09 46.73 45,328.10 1,170.01 1.6
I 1,065.000 lndymac Bancorp Inc 35.78 38,105.70 45.85 48,830.25 10,724.55 1.8
860.000 MCKESSON HBOC 45.92 39,488.79 47.28 40,660.80 1,172.01 1.5
INC COM
1,150.000 Price T Rowe Assoc Inc 33 .76 38,819.00 37.81 43,481.50 4,662.50 1.6
I
Com
935 .000 Protective Life Corp. 41.74 39,022.51 46.62 43,589.70 4,567.19 1.6
2,705.000 Seagate Technology 13.73 37,139.65 22.64 61,24120 24,101.55 2 .2
Holdings
560.000 Simon PPTY Group Inc. 68.08 38,124.80 82.94 46,446.40 8,321.60 1.7
I 655.000 Stericycle Inc 63.44 41,554.44 65.10 42,640.50 1,086.06 1.5
1,855.000 TD Ameritrade Hldg 21.46 39,815.16 14.81 27,472.55 -12,342.61 1.0
Corp/was Ameritrade
Hid
I 592,156.12 653,405.65 61,249.53 23.6
Small Cap
970.000 Fair Isaac and Company 44.36 43,031.92 36.31 35,220.70 -7,811.22 1.3
I Inc.
1,940.000 J2 Global 23 .18 44,960.76 31.22 60,566.80 15,606.04 2 .2
Communications Inc.
1,105.000 Landstar Systems Inc . 37.15 41,046.43 47.23 52,189.1 5 11,142.72 1.9
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PORTFOLIO APPRAISAL
Palm Beach Garden General Employees'
I
Combined Account
June 30, 2006
(Excluding Reinvested Divs.)
I Unit Total Market Pet.
Quutlty Sec:urlty Cost Cost Price Value Gain/Loss Assets
815.000 Precision Cas1parts 46.02 37,510.29 59.76 48,704.40 11 ,194.11 1.8
Corp.
1,300.000 Sunrise Senior living 34.46 44,800.99 27.65 35,945.00 -8,855.99 1.3
I lnc.
1,620.000 T-HQlnc. 27.20 44,069.18 21.60 34,992.00 -9,077.18 1.3
1,445.000 VCA Antech Inc 28.86 41,707.04 31.93 46,138.85 4,431.81 1.7
297,126.61 313,756.90 16,630.29 11.3
I 1,427,633.03 1,555,888.60 128,255.57 56.3
1,427,633.03 1,555,888.60 128,255.57 56.3
I
INTERNATIONAL EQUITIES
Foreign Stock
Foreign
900.000 Canadian Pacific 44.44 40,000.32 51.14 46,026.00 6,025.68 1.7
Railway Ltd. NEW
I 815.000 Ryanair Holdings 55.22 45,006.91 52.72 42,966.80 -2,040.11 1.6
PLC-SP ADR
915.000 Volvo Aktiebolaget 40.65 37,194.02 49.01 44,844.15 7,650.13 1.6
ADRCLB
I I 122,201.25 133,836.95 11,635.70 4.8
122,201.25 133,836.95 11,635.70 4.8
I 122,201.25 133,836.95 11,635.70 4 .8
I FIXED INCOME
Corporate Bonds
25,000 Chase Manhattan Corp 102.76 25,688.75 100.81 25,202.20 -486.55 0 .9
I 7.125% Due 02-01-07
50,000 Caterpillar Financial 99.99 49,992.50 99.25 49,622.95 -369.55 1.8
Services
4 .875% Due06-15-07
I I 45,000 Merrill Lynch & Co. 103.41 46,536.30 101.69 45,761.04 -775.26 1.7
6 .560% Due 12-16-07
25,000 Wells Fargo & Co 97.50 24,375.25 96.69 24,172.70 -202.55 0 .9
4 .000% Due 08-15-08
I
50,000 Merill Lynch & Co 103.86 51,928.00 101.43 50,717.05 -1,210.95 1.8
6375% Due 10-15-08
25,000 mM 96.51 24,126.50 96.30 24,075.83 -50.68 0 .9
4.250% Due 09-15-09
35,000 John Deere Capital Scr 99.81 34,931.75 98.78 34,573.32 -358.44 1.3
I MTN
5.400% Due04-07-10
25,000 Lehman Brothers 105.39 26,348.25 103.53 25,881.50 -466.75 0 .9
Holdings
I 6.625% Due 01-18-12
40,000 Morgan Stanley 94.42 37,769.60 91.68 36,672.80 -1,096.80 1.3
4 .7500.4. Due 04-04-14
25,000 Goldman Sachs Group 94.23 23,558.50 93.49 23,371.98 -186.53 0.8
I Inc
5.125% DueOl -15-15
20,000 Anheuser Busch Cos lnc. 95.58 19,115.80 91.52 18,303.10 -812.70 0 .7
4.625% Due 02-01 -15
I 2
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PORTFOLIO APPRAISAL
Palm Beach Garden General Employees'
Combined Account
I June 30, 2006
(Excluding Reinvested Divs.)
Unit Total Market Pet. I Quutlty Security Cost Cost Price Value Gain/Loss Assets
50,000 Be11Sou1h Capital 102.25 51,125.00 100.09 50,046.50 -1 ,078.50 1.8
Funding
6.040% Due 11-15-26
I 40,000 First Union Corp 107.09 42,834.40 101.74 40,695.08 -2,139.32 1.5
6.180% Due02-15-36
458,330.60 449,096.04 -9,234.57 162
Accrued lnte!Tst 6,283.11 02
I 458,330.60 455,379.15 -9,234.57 16.5
Government Bonds
I 0 FNMA 0 .00 0 .00 97.41 0.00 0.00 0 .0
3.800% Due 01-18-08
50,000 FNMA 99.16 49,579.00 98.13 49,062.50 -516.50 1.8
4.500"At Due 08-04-08 .
I 40,000 FNMA 96.95 38,780.80 96.84 38,737.50 -43.30 1.4
3.875% Due 08-15-08
150,000 FNMA 97.88 146,826.50 %.38 144,562.50 -2,264.00 5.2
6.500% Due 06-01-10
I
100,000 FHILMC Series M1N 98.86 98,862.00 98.41 98,412.90 -449.10 3.6
5250% Due 02-24-11
50,000 US Treasury Note %.59 48,293.95 93.57 46,783.20 -1,510.75 1.7
4 .250% Due 08-15-15
25,000 UNfi'ED STATES 114.72 28,679.69 108.32 27,080.08 -1,599.62 1.0
I TREASBDS
6.000% Due 02-15-26
50,000 Tennessee Valley 111.11 55,556.00 103.61 51,807.20 -3,748.80 1.9
Authority
I 5.880% Due 04-01-36
466,577.94 456,445.88 -10,132.06 16.5
Accrued Interest 7,130.48 0.3
466,577.94 463,576.36 -10,132.06 16.8
I FHIMC
55,979 FHI.MC Pool #J02621 98.86 55,340.01 96.28 53,89529 -1,444.72 1.9
I 5.000% Due 10-01-20
Accrued Interest 233.24 0.0
55,340.01 54,128.54 -1,444.72 2 .0
I FNMA
47,373 FNMA Pool #256060 101.39 48,031.73 98.50 46,663.55 -1,368.18 1.7
6.000% Due 01-01-36
Accrued Interest 236.86 0.0
I 48,031.73 46,900.42 -1 ,368.18 1.7
1,028,280.28 1,019,984.46 -22,1 79.53 36.9
I
CASH & EQUIV.
Cash Accounts
Casb & Equiv.
Cash 647.58 647.58 0 .00 0.0
647.58 647.58 0.00 0.0 I 3
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Bogdahn Consulting, LLC.
PORTFOLIO APPRAISAL
Palm Beach Garden General Employees'
Combined Account
Quaadty
MoneyMarlcets
54,891 Goldman Sachs
Fin.Sq.Treasury Oblib.
Admin
TOTAL PORTFOLIO
June 30, 2006
(Excluding Reinvested Divs.)
Unit Total
Cost Cost Price
1.00 54,891.48 1.00
54,891.48
55,539.06
2,633,653.62
4
Market Pet.
Value Gain/Loss Assets
54,891.48 0 .00 2.0
54,891.48 0.00 2.0
55,539.06 0.00 2.0
2,765,249.07 117,71L74 100.0
. . ., . . . . .; . . . . . . . . . . . . . . . . . . . . . . . .
SAWGRASS
Sawgrass Asset Management is Proud to Present
Our Fixed Income Process to
Citg ol Palm Beach Gardens
General Emplog ees' P ension Pund
August 15, 2005
Chris Greco
Senior Institutional Sales Executive
904-493-5500
••••••••••••••••••••••••••••••••
Sawgrass Asset Management, LLC
Firm Profile: ~ r3~ !l-l;f
As of July 2005 ;:{ ~ .P{G2 ~ _ ( ~
• Florida-Based, Employee-Owned, Independent Firm {:,_~ 1-k
-Stability, Consistency & Focus ~~
• Over $1 Billion in Assets
-26 Florida Municipal Clients
• 20 Years of Investment Staff Continuity
-No Investment Professional Turnover Since Inception
• Solely Dedicated to Institutional Asset Management
-Core Fixed
-Intermediate Fixed
SAWGRASS ASSET MANAGEMENT,L.L.C.
2
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Florida Public Fund Client List
Sawgrass is proud to serve as investment advisor for the following Florida Public Plans:
Bal Harbour Village Police Officers
Cooper City General Employees
Cooper City Firefighters
Cooper City Police Officers
Deerfield Beach Firefighters' Pension
Florida State Treasurer's Office
City of Jacksonville
Jacksonville Beach General Employees
Jacksonville Beach Police
Jacksonville Beach Fire
Jupiter Police Officers
Maitland Police & Fire
City of Ocala
Ocala Police Officers
Palatka Police Officers
Palatka Firefighters
Palmetto Police Officers
Pembroke Pines Police & Fire
Pinellas Park General Employees
Pinellas Park Police
St. Augustine General Employees
St. Augustine Police Officers
Sanford Police Officers
Sarasota Firefighters
Winter Garden General Employees
SAWGRASS ASSET MANAGEMENT,L.L.C.
3
. . . . . . . . . . . ., . . . . . . . . . . . . . . . . . . . .
The F ixed Income Client Service Team
Andrew M. Cantor, C.F.A. -Founding Principal-Director of Fixed Income Investments
26 Years Experience
• Lead Portfolio Manager for Core Fixed Income Portfolios
• Responsible for overall Interest Rate Oudook
• Corporate/Credit Sector Specialist
David A. Furfine, C.F.A. -Partner-Fixed Income Portfolio Manager
19 Years Experience
• Portfolio Manager for Intermediate Fixed Income Portfoli os
• Mortgage-Backed Security (MBS) Sector Specialist
Chris Greco. -Senior Institutional Sales Executive
10 Years Experience
• Lead Relationship Manager for Client Service
Alicia Q. Dator -
Operations Specialist
9 Years Experience
• Trade & Custodian Reconciliations
April December-Lehman-
Operations Specialist
13 years Experience
• Trading & Custodian Reconciliation
• All Setdement Issues • All Setdement Issues with Bank Relationships
• Lead Technology Liaison
4
SAWGRASS ASSET MANAGEMENT,L.L.C.
. . . ., . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 ~ /1v{ Los
Fixed Income Investing
Our Investment Strategy!
II
''THUMBPRINT''
High Quality Portfolio
Emphasize Corporate / Mortgage Holdings
Strategic Use of Put Bonds
Consistent Long-term Performance
SAWGRASS ASSET MANAGEMENT,L.L.C.
5
••••••••••••••••••••••••••••••••
Advantages of a Put Bond Strategy
• Adds Value in Both Up & Down Markets
• Insurance Policy Against Interest Rate Fluctuation
• Emphasizes High Quality Securities
• Risk Reduction Without Portfolio Turnover
Example:
Sun Trust 6.00°/o due 2/15/26 -Put Date 2/15/06
6
SAWGRASS ASSET MANAGEMENT,L.L.C.
., . . . . . . . ., . . . . . . . . . . . . . . . . . . . . . . .
Put Bond Strategy Example
Advantage of a Put Bond
50
-SunTrust
40
30
-10 --~--
-20 '-----------------------'
Interest Rate Change (0/o)
Bonds Used
• SunTrust 6.00°/o
Due 2/15/2026
Putable 2/15/2006@ $100
• U.S. Treasury Note 3.875°/o
Due 2/15/2013
Performance Advantages
• Upside Potential
• Downside Protection
Source: BondEdge
7
SAWGRASS ASSET MANAGEMENT,L.L.C.
••••••••••••••••••••••••••••••••
Performance
Sawgrass Core Fixed Income vs. Lehman Aggregate Index
• Unannualized & Annualized Total Returns as of 6/30/05
8%
6%
4%
2%
0%
liJ Sawgrass
• Index
Qtr
2.9%
3.0%
YTD
2.8%
2.5%
1 Year
1.5%
1.2%
3 Years
6.2%
6.0%
5 Years
7.2%
7.1%
10 Years
7.3%
7.1%
Value Added 0.3 % 0.3 % 0.2 % 0.1 % 0.2 %
SAWGRASS ASSET MANAGEMENT,L.L.C.
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• • • • • • • • • .i • • • •. • • • • • • • • • • • • • • • • • •
M a rket Cycle -10 Year Returns
Saw grass Core Fixed Income vs. Lehman Aggregate Index
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Up Market Ratio
Sawgrass' Core Fixed Income
product captured 99% of the
up market ... while only 72%
of the down market.
Down Market Ratio
Source: Mobius M-Search,Broad Fixed Universe, 5-year trailing returns as of 613 0105.
SAWGRASS ASSET MANAGEMENT,L.L.C.
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••••••••••••••••••••••••••••••••
Current Attributes and Holdings As of 6/30/05
Sawgrass Core Fixed Income vs. Lehman Aggregate Index
Yield to Maturity
Effective Maturity
Effective Duration
Average Quality
Fixed
Income
Sector
Distribution
Sawgrass
4.3%
6.9 Years
4.2 Years
AA1
Treasury
Agency I
Corporate
Mortgage
ABS
Index
4.4%
6.4 Years
4.3 Years
AAA
=====-,9%
~5%
Top Corporate Bonds
1) JP Morgan Chase 7.125% due 2/1107
2) SunTrust 6.00% due 2/1126 Putable 2/1106
3) Merrill Lynch 6.56% due 12/16/07
1:1 Sawgrass
• Index
c:::=:::::J3% Cash J
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
L__
SAWGRASS ASSET MANAGEMENT,L.L.C.
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·~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sample Compliance Monitor 6/30/05
FLORIDA CITY TREASURY RESERVE FUND
Within
MATURITY LIMITATIONS Policy Current Policy?
Effective maturity per security 5,7Years 6.9Yrs.Max Yes
Greater than three-year effective maturity 5,50% 31% Yes
Portfolio Effective Maturity 5,4 Years 2.5 Years Yes
Current Within
SECTOR ALLOCATIONS Minimum Maximum Percentage Policy?
U.S. Treasury & Federal Agencies 35% None 53% Yes
Corporate Debt Obligations* None 50% 46% Yes
Mortgage/ Asset Backed Securities None 30% 9% Yes
Municipal Securities None 20% 0 Yes
Certificates of Deposit None 20% 0 Yes
Repurchase Agreements None 25% 0 Yes
Local Gov't Surplus Funds/Trust Fund None 50% 0 Yes
Money Market/Trust None 30% 1% Yes
*U.S. dollar denominated debt obligations of domestic or foreign corporations, includes Yankee notes, Euro -dollar issues, bankers
acceptances and commercial paper.
SAWGRASS ASSET MANAGEMENT,L.L.C.
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• • • • • • .I • • • • • • • • • • • • • • • • • • • • • • • • •
How Do We Add Value?
• Employee Owned I Vested Interest
• Proven Investment Managers and Teams
• Structured and Repeatable Investment Process
• Consistent Results Above Our Clients' Benchmarks
12
SAWGRASS ASSET MANAGEMENT,L.L.C.
. ., . . . ., . . . . . . . . . ., . . . . . . . . . . . . . . . .
Proposed Fixed Income Holdings
Cusip
CORPORATE BONDS
24240VAF8
02687QBB3
939333AB6
14912LY70
891027AL8
16161ABM9
14912L2D2
05565UAA7
590188HX9
524908CVO
337358BKO
949746EX5
61748AAE6
035229BN2
244199AR6
867914AH6
857473AE2
00077QAC4
456866AK8
45686XCC5
8447HBAE2
867914AN3
33738KAA3
33738MAA9
54866NBJ7
Accrued!
GNMA
36225BBA5
36290VHG2
Accrued Int.
Security
DEAN WITTER DISCOVER & CO
AMERICAN INTERNATIONAL SER MTNF
WASHINGTON MUT FIN CORP
CATERPILLAR FINL SVCS CRP MTN
TORCHMARK CORP
JPMORGAN CHASE & CO
CATERPILLAR FINL SVCS CRP MTN
BP CANADA FINANCE
MERRILL LYNCH & CO INC
LEHMAN BROS HLDGS INC
FIRST UNION CORP
WELLS FARGO & CO
MORGAN STANLEY
ANHEUSER BUSCH COS INC CALLABLE 07/01/20
DEERE & CO Callable 06/15/09@ 100
SUNTRUST BANKS INC Putable 2/15/06@ 100
STATE STR BOSTON
ABN AMRO BK NV
INGERSOLL-RAND CO PUT ABLE 11/15/05@ 100
INGERSOLL-RANDCOPUTABLE 11/19/2005@ 1
SOUTHTRUST BANK Putable 01/09/2008 @ 100
SUNTRUST BANKS INC Putable 1/15/08@ 100
FIRST UNION CORP Putable 2/15/06@ 100
FIRST UNION CORP Putable 2/15/06@ 100
LOWES COS INC PUT ABLE 05/15/2007@ 100
GNMA PASS-THRU X PLATINUM 30YR Pool 7809
GNMA PASS-THRU X SINGLE FAMILY Pool 6186
As of June 30, 2005
Quantity Market Value Coupon Mature Date
1250000
1250000
1000000
1500000
500000
2000000
500000
750000
1500000
500000
500000
1000000
750000
750000
500000
1000000
600000
400000
335000
330000
430000
1000000
750000
500000
500000
160083
1252508
$1,260,941
$1,245,560
$1,019,339
$1,471,867
$514,548
$2,093,234
$491,437
$740,285
$1,591,550
$533,851
$527,848
$983,569
$738,877
$809,102
$580,600
$1,125,024
$770,736
$413,276
$398,926
$383,163
$488,525
$1,124,173
$894,727
$596,485
$653,070
$283,950
$21,734,662
$169,810
$1,292,801
$6,956
$1,469,567
6.50 11/1/2005
2.85 12/1/2005
6.25 5/15/2006
2.50 10/3/2006
6.25 12/15/2006
7.12 2/1/2007
3.10 5/15/2007
3.37 10/31/2007
6.56 12/16/2007
7.00 2/1/2008
6.40 4/1/2008
3.50 4/4/2008
4.75 4/1/2014
7.12 7/1/2017
8.95 6/15/2019
6.00 2/15/2026
7.35 6/15/2026
7.30 12/1/2026
6.39 11/15/2027
6.13 11/18/2027
6.12 1/9/2028
6.00 1/15/2028
6.18 2/15/1936
6.18 2/15/1936
7.11 5/15/1937
7.00 12/15/2028
6.00 8/15/1934
13
SAWGRASS ASSET MANAGEMENT,L.L.C.
••••••••••••••••••••••••••••••••
Propo s ed Fixed Income Holdi ngs (cont.) As of J une 30, 2005
Cusip Security Quantity Market Value C oupon Mature Date
FNMA
31388E6U5 FNMA PASS-THRU LNG 15 YEAR Pool 603083 545319 $560,206 5.50 1/1/2017
31371KUK5 FNMA PASS-THRU INT 15 YEAR Pool 254486 560561 $567,501 5.00 9/1/2017
31385WSS9 FNMA PASS-THRU INT 15 YEAR Pool 555029 920028 $931,418 5.00 11/1/2017
31400SCG2 FNMA PASS-THRU INT 15 YEAR Pool 695871 1831224 $1,824,211 4.50 4/1/2018
31402C5E8 FNMA PASS-THRU INT 15 YEAR Pool 725445 1727161 $1,720,650 4.50 5/1/2019
31371 H2F4 FNMA PASS-THRU LNG 30 YEAR Pool 252874 268960 $287,542 7.50 11/1 /2029
31371KN49 FNMA PASS-THRU LNG 30 YEAR Pool 254311 855803 $887,159 6.50 5/1 /1932
31371KP62 FNMA PASS-THRU LNG 30 YEAR Pool254345 909603 $933,143 6.00 6/1/1932
31400WFR6 FNMA PASS-THRU LNG 30 YEAR Pool 699576 406933 $417,354 6.00 4/1/1933
31385XEC7 FNMA PASS-THRU LNG 30 YEAR Pool555531 994702 $1,009,224 5.50 6/1/1933
31403GVE9 FNMA PASS-THRU LNG 30 YEAR Pool748613 1743201 $1,768,651 5.50 1/1/1934
Accrued Int. $45,878
$10,952,939
FHLMC
3128H7E99 FHLMC PC GOLD CASH 15 Pool E99160 1416814 $1,411,544 4.50 9/1/2018
3128MJAG5 FHLMC PC GOLD CASH 30 Pool G08006 1146524 $1,176,391 6.00 8/1/1934
Accrued Int. $10,677
$2,598,612
TREASURY BILLS
912795WG2 UNITE D STATES TREAS BILLS 1000000 $984,062 12/29/2005
CASH AND EQUIVS.
Delayed Interest $5,332
892991001 Nations Cash Reserves Trust Fund $1,627,670 1.00
$1,633,002
SAWGRASS ASSET MANAGEMENT,L.L.C. 14
• • • • • .i • • • • • • • • • • • • • • • • • • • • • • • • • •
Proposed Fixed Income Holdings (cont.) As of June 30, 2005
Cusip Security Quantity Market Value Cou p o n Mature Date
TREASURY BONDS
912828AZ3 UNITED STATES TREAS NTS 1000000 $971,875 2.62 5/15/2008
912828AU4 UNITED STATES TREAS NTS 500000 $500,625 3.87 2/15/2013
912810EW4 UNITED STATES TREAS BDS 2500000 $3,080,469 6.00 2/15/2026
Accrued Int. $66,446
$4,619,415
AGENCY BONDS
3136F6HR3 FEDERAL NATL MfG ASSN MfN Callable on 11 1000000 $989,375 3 .00 11/9/2006
3136F35D4 FEDERAL NATL MfG ASSN 500000 $491,719 2.75 2/13/2007
3128X3SM6 FREDDIE MAC CALLABLE 08/03/2005@ 100 1000000 $997,028 3.75 8/3/2007
31359MWC3 FEDERAL NATL MfG ASSN Callable 09/01/05 750000 $741,562 3.41 8/30/2007
3136F5PB1 FEDERAL NATL MfG ASSN MfN Callable Anyti 1000000 $982,187 3.02 10/12/2007
3133M1B32 FEDERAL HOME LN BKS PUT ABLE 10/15/2005 255000 $265,479 5.75 10/15/2007
31359MWW9 FEDERAL NATL MfG ASSN Callable 11/30/05 500000 $497,344 3.65 11/30/2007
3133M2JS7 FEDERAL HOME LN BKS, PUT ABLE SEMI-ANNUAL 1000000 $1,041,574 5 .68 12/3/2007
3136F6TV1 FEDERAL NATL MfG ASSN MfN Callable on 01 1300000 $1,295,125 3.80 1/18/2008
31359MTFO FEDERAL NATL MfG ASSN Callable 09/15/05 1000000 $991,250 3.75 9/15/2008
3133XOYM5 FEDERAL HOME LN BKS Callable Anytime @ 1 500000 $500,000 4.35 9/17/2008
3133M8JE5 FEDERAL HOME LN BKS 1000000 $1,066,250 5.79 4/27/2009
3128X3K85 FREDDIE MAC CALLABLE 11/18/2005@ 100 1500000 $1,499,193 4.12 11/18/2009
3136F3VN3 FEDERAL NATL MfG ASSN, CALLABLE 12/03/20 1000000 $990,312 4.40 6/3/2013
3128X1KG1 FREDDIE MAC CALLABLE 06/12/2006@ 100 500000 $486,094 4.00 6/12/2013
880591058 TENNESSEE VALLEY AUTH 500000 $527,676 4.87 12/15/2016
880591CK6 TENNESSEE VALLEY AUTH 500000 $607,999 5.98 4/1/1936
880591CS9 TENNESSEE VALLEY AUTH 1370000 $1,646,207 5.88 4/1/1936
Accrued Int. $137,992
$1 5,754,367
TOTAL PORTFOLIO $59,746,627
SAWGRASS ASSET MANAGEMENT,L.L.C. 15
••••••••••••••••••••••••••••••••
Investment Management Fees
Saw grass Asset Management would like to provide
institutional investment management services to
Palm Beach Gardens Pension Fund
based on the following schedule:
.45% on assets under management ( 45 basis points)
Fees are calculated quarterly at 114 of the annual rate, payable in arrears.
SAWGRASS ASSET MANAGEMENT,L.L.C.
••••••••••••••••••••••••••••••••
Performance
Sawgrass Intermediate Fixed Income vs. Lehman Intermediate Gov't/Corp Index
• Unannualized & Annualized Total Returns as of 6/30/05
8%
6%
4%
2%
0%
l:l Sawgrass
• Index
Qtr
2.2%
2.5%
1 Year
4.5%
4.8%
3 Years
4.6%
5.1%
5 Years
6.5%
6.9%
10 Years
6.3%
6.3%
SAWGRASS ASSET MANAGEMENT,L.L.C.
17
• •
• • • • • • • • • • • • • • • • • • • • • • • • • • •
•
Decision Process
We begin by identifying a universe of
securities consistent with our client's
objectives and policies. For corporate
issues, we further screen based on
measures of credit worthiness .
Our next step focuses on the maturity
structure decision. We base this
decision on our interest rate forecast,
the resulting yield curve
configuration, and our confidence in
these two predictions .
In forecasting the direction of interest
rates, we evaluate five distinct
factors: economic growth rates, fiscal
policy, monetary policy, inflation and
international events. With this
interest rate forecast, we then analyze
the current yield curve configuration,
which tells us which maturities,
relative to the benchmark, are most
likely to provide additional returns .
We will then structure the portfolio's
effective duration within a range of +I
·2o% from the appropriate
benchmark .
Sawgrass also seeks to add value for
clients through our evaluation of the
relative attractiveness of market
sectors. We evaluate sectors
according to the stage of the
economic cycle, yield relationships
and performance simulations .
Having established a maturity, sector,
and quality framework, we analyze
the structure of specific fixed income
securities. The process considers such
items as redemption features and uses
rich/cheap analysis to find
undervalued issues. Before the final
selection of a security, we run a
performance scenario analysis to
better understand how the specific
issue will perform given various
changes in the market .
Our sell discipline considers market
conditions, portfolio rebalancing and
specific issue fundamentals. When a
portfolio change in duration or sector
allocation is implemented, sell
candidates are evaluated so as to
accomplish the portfolio adjustment
Intermediate Fixed Income Investing
Andrew M. Cantor, CFA,
Principal,
Director of Fixed Income Investing
Phone: (904) 493-5500
INVESTMENT PHILOSOPHY
Christopher J. Greco,
Senior Institutional Sales Exect~tive
Phone: (904) 493-5504
Fax: (904) 493-5522
Sawgrass Asset Management's active Intermediate Fixed Income product has
incorporated a defined investment philosophy whose effectiveness has been
proven since its inception in 1991. This strategy focuses primarily on controlled
duration management of investment grade securities and secondarily on strategic
sector valuations and specific security analysis. This portfolio has an effective
duration that ranges from 3-5 years and an average maturity that ranges from 4-
8 years. There currently are no sector constraints. The investable universe
consists of U.S. dollar-denominated government, corporate and mortgage-backed
securities . The investment approach is managed to the Lehman Intermediate
Government/Corporate Index.
PERFORMANCE
Qtr
D Saw grass 2.2%
• Lelunan Int. G/C 2.5%
ATTRIBUTES
Yield to Maturity(%)
Effective Maturity (Years)
Effectivernuation(Years)
Convexity
Average Quality
1 Yr
4.5%
4.8%
3 Yrs
4.6%
5.1 %
not investment management tton
6/30/05-Gross of Fees
5 Yrs
6.5%
6.9%
10Yrs
6.3%
6.3%
6/30/05
results for the quarter, one year, three years, five years, and 10 years would be 2.1 %, 4.1 %, 4.1 %, 6.1 %, and 5.8%, respectively.
SAWGRASS
Asset Management, L.L.C. Intermediate Fixed Income Investing
PERFORMANCE DISCLOSURES
Sawgrass Asset Management, LLC. (Sawgrass) has prepared and presented this report in compliance with the Perfor-
mance Presentation Standards of the The CFA Institute (AIMR-PPST"), the U.S. and Canadian version of the Global
Investment Performance Standards (GIPST"). The CFA Institute has not been involved in the preparation or review of
this report.
Sawgrass is a Registered Investment Advisor whose primary focus is to provide institutional investment management
services.
Performance up to March 31, 1998 consists of accounts managed at Barnett Capital Advisors, Inc., where the entire
Sawgrass team was previously employed. The entire team that produced and were responsible for these results is
currently at Sawgrass, managing these products under the same investment philosophy and process. All fee paying,
fully discretionary, tax-exempt accounts managed by Sawgrass are included in at least one composite and do not
include simulated, modeled, or back-tested performance.
Returns do not reflect the deduction of investment advisory fees and include cash. Client returns will be reduced by
these advisory fees and any other expenses it may incur in the management of its investment advisory account.
The Firm's official performance record is maintained in Advent Axys, a PC-based portfolio management and accounting
system. Barnett Capital Advisors, Inc. utilized Super4, a mainframe performance measurement application.
Performance is on a trade date dollar-weighted monthly basis in U.S. dollars. The dollar-weighted monthly results are
• •
• •
• • • • • • •
geometrically linked (time-weighted) to produce quarterly and annualized results. New accounts are added to the •
composite beginning with their first month of fully discretionary performance. Terminated accounts remain in
composites through their last full month of discretionary performance. A comprehensive list and description of the
firm's composites is available upon request.
Past performance does not guarantee future results. Investments are subject to risk and may lose value.
Iriformation Specific to the Intermediate Fixed Income Composite: As of 6/30/05, this composite was comprised
of 12 accounts valued at $65 million. Assets in this composite represent 6% of the firm's total assets under management.
This composite's creation date was t/t/93 and it's minimum account size is currently $1 million.
The investment management fee schedule is available in Part II of Form ADV as follows: 0-45% on the first $to
million, 0.35% on the next $20 million and 0.25% on the balance. As an example, the effect of investment management
fees on the total value of a client's portfolio assuming (a) $1,ooo,ooo investment, (b) portfolio return of 6% a year, and
(c) 0.45% annual investment advisory fee would be $4,660 in the first year, and cumulative effects of $26,018 over
five years.
Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Annual Tolal Return 15.6°1o 4.4% 8.1~10 7.9% 1.3% 9.8% 8.7°1o 9.8% 3.4% 3.0%
Lehman Intermediate Gov / Corp Index 15.3% 4.1% 7.9% 8.4% 0.4% 10.2% 9.0% 9.8% 4.3% 3.0%
Value Added 0.3% 0.3% 0.2% -0.6% 0.9% -0.4% -03% 0.0% -0.9% 0.0%
Intermediate Comp. Assets-Year End (MM) $74.4 S102.1 $102.6 $16.5 $23.4 $36.2 $24.5 S64.3 $69.5 $68.1
Tolal Firm Assets-Year End (MM) $2,150.0 $1,947.0 $2,000.0 5189.5 $629.1 $1,177.2 $1,070.3 5940.6 $863.6 $1,006.8
Percent of Firm's Assets 3.5% 5.2% 5.1% 8.7% 3.7% 3.1% 2.3% 6.8% 8.0°'• 6.8%
Number of Accounts 5 7 8 2 3 11 8 10 12 12
Di~'Persion 1.65% 0.26% 0.12% n/a* n/a* 0.10% 0.29% 0.37% 0.42% 0.33%
*When there ace two or fewer accounts represented for the entire year, the calculation of standard deviation as a form of dispersion is not meaningful.
1994: High was -1.97%; low was -2.98%. 1999: High was 1.61°1o; low was 1.22%.
• • • • • • • • • • • • • • • • • --------------------------------------------------•
••••••••••••••••••••••••••••••••
The Sawgrass Management Team
Andrew M. Cantor, C.F.A.
Principal, Director of Fixed Income Investments
28 Years of Investment Experience
Mr. Cantor is a founding Principal of Saw grass Asset Management and serves as the firm's Director of Fixed Income. He
is the lead portfolio manager for the Sawgrass intermediate and core fixed income portfolios and serves on the firm's
management committee. Prior to the formation of Sawgrass, he spent 15 years at Barnett Capital Advisors, Inc . where he
was responsible for creating the institutional group's fixed income investment discipline and served as head of all
taxable fixed income assets. Prior to Barnett, he worked for Gulf United Corporation, where he was responsible for economic and interest rate
analysis and the management of approximately $1.1 billion in fixed income investments. He has 28 years of experience managing funds for
pension, endowments, foundations, insurance companies, corporate reserves and individuals. Mr. Cantor received his B.S. in Mathematics
from Florida Atlantic University and his M.A. in Economics from the University of South Carolina. Mr. Cantor has served as President of the CFA
Society of Jacksonville, holds a membership in The CF A Institute and has earned the Chartered Financial Analyst (CFA) designation.
Dean E. McQuiddy, C.F.A .
Principal, Director of Equity Investing
23 Years of Investment Experience
Mr. McQuiddy is a founding Principal of Saw grass Asset Management and directs the firm's equity management and
research efforts. He is the lead portfolio manager for the Saw grass small and small/ mid-cap growth equity portfolios
and serves on the firm's management committee. Prior to Saw grass, he spent 15 years at Barnett Capital Advisors, Inc.
and was solely responsible for creating the firm's small cap growth product in January of 1987. Mr. McQuiddy received his B.S. in Finance from
the University of Florida and holds a membership in and has earned the Chartered Financial Analyst (CFA) designation from The CFA Institute.
SAWGRASS ASSET MANAGEMENT,L.L.C.
. . . •~ . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Sawgrass Management Team (cont.)
Brian K. Monroe
Principal, Director of Sales & Marketing
16 Years of Investment Experience
Mr. Monroe is a founding Principal of Saw grass Asset Management and serves as the firm's Director of Sales & Marketing.
He is responsible for all new business development and marketing efforts for Saw grass and serves on the firm's manage-
ment committee. Prior to Saw grass, Mr. Monroe was directly responsible for all national market sales and new business
development at Barnett Asset Management. He also developed and served client and consultant relationships in the Florida and national
marketplace. His previous experience also includes working with SEI Capital Resources in their New York City office where he served as
Primary Consultant to institutional plan sponsors in the corporate endowment, foundation, Taft-Hartley and hospital industries for over five
years. Mr. Monroe earned his B.S. and M.B.A. in Finance from Providence College and currently serves as a committee member for the Associa-
tion of Investment Management Sales Executives (AIMSE). Mr. Monroe also holds a Series 65.
Martin E. LaPrade, C.F.A.
Partner, Equity Portfolio Manager
25 Years of Investment Experience
Mr. LaPrade is a Partner at Saw grass Asset Management and serves as an Equity Portfolio Manager, primarily respon-
sible for large and small cap growth portfolios at Sawgrass Asset Management. As a member of the equity research
committee and the firm's management committee, he is responsible for merging quantitative equity models with specific
security selection. Prior to Saw grass, he was an equity portfolio manager with Barnett Capital Advisors, Inc. where he was an integral part of the
institutional investment team and research committee. Mr. LaPrade received his B.S. in Accounting from Furman University. He is a member of
the CFA Society of Jacksonville and has earned the Chartered Financial Analyst (CF A) designation from The CF A Institute, of which he is also
a member.
SAWGRASS ASSET MANAGEMENT,L.L.C.
-----------------------------• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
The Sawgrass Investment Team
Andrew M. Cantor, C.F.A.
Principal, Director of Fixed Income Investments
28 Years of Investment Experience
Dean E. McQuiddy, C.F.A.
Principal, Director of Equity Investing
23 Years of Investment Experience
Martin E. LaPrade, C.F.A.
Partner, Equity Portfolio Manager
25 Years of Investment Experience
S A W G R A S S A S S E .T M A N A G E M E N T , L • L • C •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
The Sawgrass Investment Team (cont.)
David A. Furfine, C.F.A.
Partner, Fixed Income Portfolio Manager
20 Years of Investment Experience
Mr. Furfine is a Partner at Saw grass Asset Management and serves as a Fixed Income Portfolio Manager overseeing all
investments in mortgage-backed securities and a variety of fixed income portfolios. His responsibilities include interest
rate analysis, portfolio construction and lead portfolio management on the firm's short-term fixed income portfolios. Mr.
Furfine was formerly with Barnett Capital Advisors, Inc. where he utilized his fixed income and mortgage expertise in a
similar fashion. Prior to Barnett, he served eight years with Prudential Home Mortgage Company managing all trading and hedging activities.
Additionally, he managed a mortgage portfolio of over $10 billion while at Prudential. Mr. Furfine received a B.S. in Economics summa cum
laude from The Wharton School of The University of Pennsylvania. He is a member of The CFA Institute, has earned the Chartered Financial
Analyst (CF A) designation and currently serves on the Board of the CFA Society of Jacksonville, recently a past President.
Patrick A. Riley, C.F.A.
Partner, Equity Portfolio Manager
13 Years of Investment Experience
Mr. Riley is a Partner and serves as an Assistant Portfolio Manager on all small and small/mid-cap growth equity
portfolios at Saw grass Asset Management. He also serves on the equity management research committee with direct
responsibility for the firm's quantitative proprietary research modeling system. Mr. Riley was formerly with Barnett
Capital Advisors, Inc. where he served as senior analyst and assistant portfolio manager of the small cap equity product. Mr. Riley has a M.B.A.
with a concentration in Finance from Auburn University and a B. B.A. with a major in marketing from Marshall University. He has earned the
Chartered Financial Analyst (CFA) designation and is a member of The CFA Institute and the CFA Society of Jacksonville.
SAWGRASS ASSET MANAGEMENT,L .L.C.
••••••••••••••••••••••••••••••••
The Sawgrass Investment Team (cont.)
W. Marc Davis, C.F.A.
Equity Research Analyst
6 Years of Investment Experience
Mr. Davis is an Equity Research Analyst for all of the equity portfolios at Sawgrass Asset Management. He serves on the
firm's equity management research committee and is primarily responsible for quantitative and fundamental research.
Mr. Davis graduated from Wake Forest University with a M.B.A. in Finance and a B.A. in Economics. He has previous
work experience with the Charles Schwab Corporation and the Van guard Group. Mr. Davis has earned the Chartered Financial Analyst (CF A)
designation and is a member of The CFA Institute and the CF A Society of Jacksonville.
Judy Z. Doyle
Partner, Equity Security Trader
32 Years of Investment Experience
Ms. Doyle is a Partner and serves as the Head Equity Security Trader for Saw grass Asset Management. Her responsibili-
ties include all security trading, execution and implementation of the firm's equity assets. Previously, she was the equity
trading manager at Barnett Capital Advisors, Inc. where she spent 20 years trading for institutional and retail trust
accounts with particular emphasis on small cap execution. Prior to Barnett, she was the equity trader for the First Union
Corporation in Charlotte, North Carolina. Ms. Doyle is a member of the national Security Traders Association, of which she was the first woman
elected to the Board of Governors in their 54-year history. Ms. Doyle holds a Series 65.
SAWGRASS ASSET MANAGEMENT,L.L.C.
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
The Sawgrass Investment Team (cont.)
Janet B. Emmick
Partner, Equity Security Trader
19 Years of Investment Experience
Ms. Emmick is a Partner and serves as an Equity Security Trader for Saw grass Asset Management. She is responsible for
all security trading and execution of the firm's equity assets. Previously, she was the primary fixed income securities
trader at Barnett Capital Advisors trading all types of fixed income securities for retail, institutional and corporate trust
accounts. In addition, she was the assistant portfolio manager on a $2 billion money market mutual fund and also
managed individual fixed income portfolios with various maturity structures. Ms. Emmick is a graduate of the University of North Florida with
a B.A. in Finance. Ms. Emmick holds a Series 65.
Timothy H. Christiansen
Equity Security Trader
17Years of Investment Experience
Mr. Christiansen is an Equity Trader with Saw grass Asset Management. He has worked on Wall Street as an equity
option and futures sales trader and has traded equities on the floor of the Chicago Stock Exchange. Prior to joining
Saw grass, he worked extensively with the City of Gainesville General Employees' Pension Plan and the Consolidated
Police Officers' and Firefighters' Retirement Plan regarding manager searches, due diligence and strategic planning.
Mr. Christiansen graduated Magna Cum Laude from Duke University and received his M.B.A. from Duke's Fuqua School of Business where he
was in the top 5% of his class . He is a member of The CFA Institute and holds a Series 65.
SAWGRASS ASSET MANAGEMENT,L.L.C.
••••••••••••••••••••••••••••••••
The Sawgrass Investment Team (cont.)
Alicia Q. Dator
Investment Operations /Technology Liaison
9 Years of Investment Experience
Ms. Dator serves as an Investment Operations specialist with Saw grass Asset Management. Her responsibilities include
all trade and custodian reconciliations on a daily basis. She also acts as a liaison between broker I dealers on any
settlement issues and between the firm's technology partners to assist on all day to day technology needs. Ms. Dator has
worked in the investment field for the last nine years with Barnett Capital Advisors, Inc., and most recently served as an investment associate at
Colonial Asset Management. Ms. Morris holds a Series 65.
April December-Lehman
Investment Operations
14 Years of Investment Experience
Ms. Lehman serves as an Investment Operations specialist for Sawgrass Asset Management. Her responsibilities in-
clude all trade and custodian reconciliations on a daily basis. She also acts as a liaison between broker I dealers on any
settlement issues. Ms. Lehman most recently served in trust administration and portfolio management at Wachovia
Bank, N.A. Ms. Lehman has had extensive education through the American Bankers Association, The College of Financial Planning and
Cannon Financial Institute and is currently pursuing her accredited Asset Management Specialist Certification and the CTFA.
SAWGRASS ASSET MANAGEMENT,L.L.C.
••••••••••••••••••••••••••••••••
The Sawgrass Marketing & Client Service Team
Brian K. Monroe
Principal, Director of Sa les & Marketing
16 Years of Investment Experience
Joe Beattie, III
Partner, Florida Institut i ona l Sales
21 Years of Investment Experience
Mr. Beattie is a Partner at Sawgrass Asset Management and serves as the firm's Sales and Client Service Professional
concentrating on the Florida institu tional market. He has extensive asset management and institutional marketing
experience in Florida with such firms as Manning & Napier Advisors, Inc. and First Union Capital Management in
Miami. Corporations, endowments, foundations, Taft-Hartley, insurance companies, municipalities and governmental entities are among the
variety of client relationships he has established and maintained over the years. Mr. Beattie received his B.S. from West Virginia Institute of
Technology and holds a Series 65.
Christopher J. Greco
Senior Institutional Sales Executive
10 Years of Investment Experience
Mr. Greco is a Senior Institutional Sales Executive responsible for new business development and client service. Mr.
Greco is responsible for initiating and maintaining new relationships with state retirement plans, corporations, foun-
dations, endowments and health care entitites in the state of Florida. In addition, he covers a select group of consultants
in the Southeast region of the United States. Prior to Sawgrass, Mr. Greco was the Vice President of Institutional Sales for Clover Capital
Management and marketed institutional products to plan sponsors at Fidelity Investments. Mr. Greco received his B.S. and M.B.A. in Finance
from Boston College. Mr. Greco also holds a Series 65.
SAWGRASS ASSET MANAGEMENT,L.L.C.
••••••••••••••••••••••••••••••••
The Sawgrass Marketing & Client Service Team (c ont.)
Cristine M. Davis
Associate, Sales & Mark eting
11 Years of I nvestment Experience
Ms. Davis serves as an Associate with the firm's Sales and Marketing team. She is responsible for a variety of Saw grass
Asset Management's marketing efforts, including the firm's marketing materials, presentations, performance reporting
and responses to request for proposals and consultant questionnaires. Prior to joining Saw grass, she spent five years at
Barnett Capital Advisors, Inc. assisting their institutional investment managers and sales professionals with client presentations and product
mat erials. Ms. Davis has a B.B.A. with a concentration in Finance from The University of North Florida.
Lori D. Bayler
Associate, Sales & Marketing
1 Year of Investment Experience
Ms. Bayler serves as an Associate with the firm's Sales & Marketing team. She is responsible for a variety of sales and
marketing efforts, including the firm's marketing materials, presentations, conference facilitating and database mainte-
nance. Ms. Bayler graduated Summa Cum Laude and with Baccalaureate Honors from the University of North Florida
with a B. B.A. in Marketing & Management.
SAWGRASS ASSET MANAGEMENT,L.L.C.
•
• • •. .! • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Performance Disclosures
Saw grass Asset Management, LLC. (Sawgrass) has prepared
and presented this report in compliance with the Perfor-
mance Presentation Standards of the The CFA Institute
(AIMR-PPSTM), the U.S. and Canadian version of the Glo-
bal Investment Performance Standards (GIPS™). The CFA
Institute has not been involved in the preparation or re-
view of this report.
Sawgrass is a Registered Investment Advisor whose primary
focus is to provide institutional investment management
services.
Performance up to March 31, 1998 consists of accounts
managed at Barnett Capital Advisors, Inc., where the entire
Sawgrass team was previously employed. The entire team
that produced and were responsible for these results is cur-
rently at Saw grass, managing these products under the same
investment philosophy and process. All fee paying, fully
discretionary, tax-exempt accounts managed by Sawgrass
are included in at least one composite and do not include
simulated, modeled, or back-tested performance. Compos-
ites include separately managed accounts and equity com-
posites do not include segments of balanced accounts.
Year
Annual Total Return
Lehman Aggregate Index
Value Added
Core Fixed Comp. Assets-Year End (MM)
Total Firm Assets-Year End (Ml'vf)
Percent of Firm's Assets
Number of Accounts
Dispersion
Returns do not reflect the deduction of investmenl advi-
sory fees and include cash. Client returns will be reduced by
these advisory fees and any other expenses it may incur in
the management of its investment advisory account.
The Firm's official performance record is maintained in
Advent Axys, a PC-based portfolio management and
accounting system. Barnett Capital Advisors, Inc. utilized
Super4, a mainframe performance measurement
application. Performance is on a trade date dollar-weighted
monthly basis. The dollar-weighted monthly results are
geometrically linked (time-weighted) to produce quarterly
and annualized results. New accounts are added to the
composite beginning with their first month of fully
discretionary performance. Terminated accounts remain
in composites through their last full month of discretionary
performance. A comprehensive list and description of the
flrm's composites is available upon request.
Past performance does not guarantee future results.
Investments are subject to risk and may lose value.
1995 1996 1997 1998 1999 2000
18.5°1o 3.4% 9.9% 8.3% .{).2'"• 11.5%
18.5% 3.6% 9.7% 8.7°1o .{).8°1o 11.6%
0.1 "'• .{).2% 0.3% .{).4% 0.6% .{).1%
$64.4 $169.3 $184.8 $31.1 $42.2 $86.3
$2,150.0 $1,947.0 $2,000.0 $189.5 $629.1 $1,177.2
3.0% 8.7% 9.2% 16.4% 6.7% 7.3%
4 6 6 5 6 9
0.18"1o 0.08°1• 0.09°~ n/a* 0.22% 0.34°1o
Information Specific to the Core Fixed Income Composite:
As of 6/30/05, this composite was comprised of25 accounts
valued at $290 million. Assets in this composite represent
27% of the flrm's total assets under management. Product
results for the quarter ending March 31, 1998 represent the
flxed income segment with a pro-rata cash allocation of
balanced accounts transitioned to Sawgrass. This
composite's creation date was 1/l/93 and it's minimum
account size is currently $1 million.
The investment management fee schedule is available in
Part II of Form ADV as follows: 0.45% on the flrst $10
million, 0.35% on the next $20 million and 0.25% on the
balance. As an example, the effect of investment
management fees on the total value of a client's portfolio
assuming (a) $1,000,000 investment, (b) portfolio return
of 6% a year, and (c) 0.45% annual investment advisory
fee would be $4,660 in the flrst year, and cummulative
effects of $26,018 over flve years.
2001 2002 2003 2004
8.4% 10.7% 4.1% 4.1°1o
8.4% 10.3% 4.1% 4.4%
0.0% 0.4% 0.0% .{).3%
$127.0 $197.3 $185.7 $271.2
$1,070.3 $940.6 $863.6 $1,006.8
11.9% 21.0% 21.5°1o 26.9%
17 20 20 24
0.39°1o 0.37% . 0.27% 0.18°1•
*When there are two or fewer accounts represented for the entire year, the calculation of standard dcYiation as a form of di spersion is not meaningful.
SAWGRASS A S S E T MAN AGE MEN T,L.L.C.
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Performance Dis closu re s
SawgrassAsset Management , LLC. (Sawgrass) has prepared
and pre se nted this report in compliance with the Perfor-
man ce Presentation Standard s of the The CFA Institute
(AIMR-PPSTM), the U.S. and Canadian version of the Glo-
. ballnvestment Performance Standards (GIPSTM). The CFA
Institute has not been involved in the preparation or re-
view of this report.
Sawgrass is a Registered Investment Advisor whose primary
focus is to provide institutional investment management
services.
Performance up to March 31, 1998 consists of accounts
managed at Barnett Capital Ad visors, Inc., where the entire
Saw grass team was previously employed. The enti re team
that produced and were responsible for these results is cur-
rently at Saw grass, managing these products under the same
investment philosophy and process. All fee paying, fully
di scretionary, tax-exempt accounts managed by Sawgrass
are included in at least one composite and do not include
simulated, modeled, or back-tested performance. Compos-
ites include separately managed accounts and equity com-
posites do not include segments of balanced accounts.
Year
Annual Total Return
Lehman Intermediate Gov / Corp Index
Value Added
Intermediate Comp. Assets-Year End (MM)
Total Firm Assets-Year End (MM)
Percent of Firm's Assets
Number of Accounts
Dispersion
Returns do not reflect the deduction of investment advi-
sory fees and include cash. Client returns will be reduced by
these advisory fees and any other expenses it may incur in
the management of its investment advisory account.
The Firm's official performance record is maintained in
Advent Axys, a PC-based portfolio management and
accounting system. Barnett Capital Advisors, Inc. utilized
Super4, a mainframe performance measurement
application. Performance is on a trade date dollar-weighted
monthly basis. The dollar-weighted monthly results are
geometrically linked (time-weighted) to produce quarterly
and annualized results . New accounts are added to the
composi te beginning with their first month of fully
discretionary performance. Terminated accounts remain
in composites through their last full month of di scretionary
performance. A comprehensive list and description of the
firm's composites is available upon request.
Past performance does not guarantee future results.
Investments are subject to risk and may lose value.
1995 1996 1997 1998 1999 2000
15.6% 4.4% 8.1 °1o 7.9% 1.3% 9.8°'o
15.3% 4.1 % 7.9% 8.4% 0.4% 10.2°1o
0.3% 0 .3% 0.2% -0.6% 0.9% -0.4%
$74.4 $102.1 $102.6 $16.5 $23.4 $36.2
$2,150.0 $1,947.0 $2,000.0 $189.5 $629.1 $1,177.2
3.5% 5 .2~'o 5.1% 8.7% 3.7% 3.1%
5 7 8 2 3 11
1.65% 0 .26% 0.12% n/a* n/a* 0.10%
Infornwtion Specific w the Intermediate Fixed Income
Composite: As of 6/30/05, this composite was comprised
of 12 accounts valued at $65 million. Assets in this
composite represent 6% of the firm's total assets under
management. This composite's creation date was 111/93
and it's minimum account size is currently $1 million.
The investment management fee schedule is available in
Part II of Form ADV as follows: 0.45% on the first $10
million, 0.35% on the next $20 million and 0.25% on the
balance. As an example, the effect of investment
management fees on the total value of a client's portfolio
assuming (a) $1,000,000 investment, (b) portfolio return
of 6% a year, and (c) 0.45% annual investment advisory
fee would be $4,660 in the first year, and cummulative
effects of $26,018 over five years.
2001 2002 2003 2004
8.7% 9.8% 3.4% 3.0%
9.0% 9 .8"1o 4.3% 3.0%
-0.3% 0.0% -0.9% 0.0%
$24.5 $64.3 $69.5 $68.1
$1,070.3 $940.6 $863.6 $1,006.8
2.3% 6.8°1o 8.0% 6.8%
8 10 12 12
0.29% 0.37% 0.42% 0.33%
*When d1erc are two or fewer accounts represented fur d1e entire year, d1e calculation of standard de\'iation as a form of dispersion is not meaningful.
1994: High was -1 .97%; low was -2.98"1o. 1999: High was 1.61°'o; low was 1.22°1o.
SAWGRASS A S S E T MAN AGE MEN T,L.L.C.
a