HomeMy WebLinkAbout2005 10 25 Attached Report Given to Board Members During MeetingDate: October 25, 2005
THE ATTACHED REPORT WAS GIVEN
TO BOARD MEMBERS DURING THE
MEETING.
TRUSCO
CAPITAL
MANAGEMENT
Prepared Exclusively For:
City of Winter Springs
General Employees'
Pension Plan
Investment Review
Third Quarter 2005
Blake Myton
Investment Manager
407-237-5816
blake.myton @ truscocapital.com
Molly Halcom
Investment Manager
407-237-4372
mol ly. halcom @ truscocapital.com
Dianne Garcia
Relationship Manager
407-237-4513
dianne.garcia @ suntrust.com
The Hurt Building -Atlanta, GA
Period Ending I Table of Contents
September 30, 2005
Economic Overview /Market Snapshot
Performance & Portfolio Composition
Fund Fact Sheets
Fund Attribution Summary
Appendix .
~ Please refer to appendix for full disclosure
City of Winter Springs General Employees' Pension Plan
Section
Section II
Section III
Section IV
Section V
TRUSCO CAPITAL MANAGEMENT I ~
~ ~ r ~ ~ ~. ~ ~ ~ rr ~ ~ rr ~ ~ ~ ~ r r
. .
• - ~ ~.4 ~.e ~~r e •
"'.~'.~~~ 'cz8.t~'~ 0.8 3.6 5.0 2,8 12.2 0.2 0.5
~ 1 10568.70 1.0 3.5 1.8 -0.3 7.5 0.2 0.4
2151.69 0.0 4.6 7.6 -1.1 13.4 0.2 0.6
- ••~ 1285.12 0.9 3.9 6.1 4.1 14.3 14.1 17.7
~ t 879.39 0.2 4.9 8.3 4.7 19.2 0.3 0.7
''; ~ s ' _ ~~.° '`. 12289.26 0.6 3.5 5.6 2.7 12.8 0.2 0.4
,r ~
`'' 587.07 0.6 3.8 3.9 20 10.7 0.2 0.4
' "~` ~ 637.48 1.0 3.4 6.1 3.5 13.8 0.3 0.5
= 330.83 0.5 4.0 6.6 2.2 11.6 9.5 14.7
~~~ 421.12 1.4 3.9 5.6 5.7 16.7 18.8 20.7
s ~ • s ,
- 573.50 0.1 3.1 5.2 0.1 7.8 7.0 12.2
' 705.61 1.4 3.2 3.6 3.3 12.6 15.9 18.3
~~ ~
290.80 0.6 4.4 8.2 8.1 21.1 0.3 0.5
278.71 0.9 5.4 10.5 9.7 23.2 0.4 0.7
781.17 1.3 6.6 10.2 8.4 23.5 18.5 24.9
964.72 1.4 5.4 10.3 11.2 26.1 26.1 26.9
„ ~
234.85 1.5 6.6 10.6 8J 24.0 0.4 0.6
257.12 0.3 4.2 8.4 5.9 18.6 0.4 0.6
2098.70 0.8 6 3 10.0 2.5 18.0 14.9 23.2
3585.42 -0.2 3.1 8.3 4.0 17.8 21.9 25.1
r •, i ~ ~,..: , r •
566.80 0.4 1.6 0.9 -1.5 6.0 0.1 0.3
" • "~~ 859.59 0.8 4.9 9.4 8.9 22.2 0.3 0.6
' • • ~ 350.20 0.9 5.4 9.5 7.3 21.2 0.4 0.6
• ' ~ ~ 524.48 0.8 3.1 4.4 1.7 10.2 1 1.1 15.0
• • • 2197.72 1.3 5.9 10.3 10.1 25.1 22.8 26.0
~ ~ • • • 1659.69 0.3 4.7 9.2 3 4 18.0 18.5 24.4
1601.66 1.3 7.2 8.0 1.2 13.4 0.2 0.6
256.41 -2.9 -0.9 -1.9 -7.4 5.1 0.2 13.7
240.47 1.4 3.1 2.4 3.1 11.3 0.2 8.0
403.96 6.0 18.2 20.6 41.8 48.5 0.7 35.8
396.70 0.9 0.7 5.0 -1.7 6.1 0.2 15.4
363.77 -0.6 1.4 5.6 5.0 10.4 0.1 8.9
• 278.17 1.4 2.4 -1.0 -2.6 7.2 0.3 17.0
• • • • • 327.76 0.3 5 9 7.8 -0.1 13.4 0.1 22.7
169.25
- 0.8 1.9 -7.7 -6.1 2.0 0.3 18.3
_ -_ 118.72 -1.4 1.1 2.5 -5.5 2.3 0.2 18.6
170.43 4.0 7.3 17.3 23.6 38.7 0.5 26.7
%'/ris perspective was prepared r c'liertts and prospective c•1&~nb q~ Trusco C'crpttrrl :blrur«~+rnrrat, Irr,..Ve~iihr~r 7'r«.~r a ur «rrr a,(Ji/i«tirr«~ rrt«br «n~ rr preseat«tiu« ru~ ,rrur«ati<~c m t« thr~ «c r ur«e c nr nr<~n
analvsis.firr individual use. Pas returns are not indirntive of fuhrre results. C'mnnreru.c and prujectinus ue•rr hasrd un i«firrnurnurr uruN«hlf rn thr time o nritin~~. «rr or i« irrnr«riunul rurruse~ Holy.
intended as iudividuaf or speci c advice, and may not he relied upon for frdure investing. Investors are advised to consult with t/reir imestmertt prof, I
making urr-v investment decision .
City of Winter Springs General Employees' Pension Plan TRlISCO CAPITAL MANAGEMENT
SeptembeE30l 005 Key Themes in the Third Quarter, 2005
Equities Outperformed in the 3rd Quarter
Please refer to appendix
for full disclosure.
• Equities enjoyed moderate, broad-
based gains in the third quarter, and the
S&P 500 moved ahead of the Lehman
Aggregate Bond Index year to date.
• Hurricanes Katrina and Rita hit the gulf
coast in late August and September,
causing widespread destruction and
loss of life.
• Economic momentum prior to the
^ Int'I 9.8 7.6 6.8 22.8
Bonds -0.68 2.31 1.83 2.80 storms was solid, but the interruption of
energy output pushed prices sharply
higher, curbing discretionary income and reducing profit margins in non-oil companies.
30 Major Index Performance through 9/30/05
20
,0 ~ i .~
0
-10
3-Nbs. 6 Mos. YTD 1-Yr.
^ Large-Cap 3.6 5.0 2.8 12.2
^Small 4.7 92 34 180
• Foreign economic growth showed signs of improvement, particularly in Asia (especially
Japan) and in the United Kingdom.
•The Federal Reserve, citing a belief that the disruptions from the hurricanes would be
transitory and highlighting concerns over rising inflation expectations, raised the
overnight fed funds rate two more times to 3.75%. The Fed has hiked the short-term
benchmark rate at eleven consecutive policy meetings since the 1 % low in June 2004.
• Bond yields rose and the yield curve remained relatively flat over the course of the
quarter, though there was some steepening following the hurricanes. Credit quality held
steady at relatively low levels.
y~
~.
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT 3
rr I~ >•r r ,~ ~ ~ r• .~ ~ ~ ~ III i~ r ~ i ~ ~
Period Ending Equity Markets in the Third Quarter, 2005
September 30, 2005
Int'I Equities Led Rebound in O3
Major Index Performance through 9/30/05
30
20
10
0
3-Mos. 6 Mos
r iu i-Yr
Overview: The domestic equity markets
benefited from signs of improved
economic momentum pre-hurricanes and
expectations of significant rebuilding
post-hurricanes. International stocks
rebounded amid evidence of
strengthening in Asia and the United
Kingdom.
^ Large 3.6 5.0 2.8 12.2
^ Mid 5.9 10.3 10.1 25.1 Large-Caps: The S&P 500 gained 3.6%
^ Small 4.7 9.2 3.4 1s.o on a total return basis in the third quarter,
Int'I 9.8 7.6 6.8 22.8 lifting the index back into positive territory
year to date and 12.2% from a year ago.
Sector Performance: Higher energy prices helped the energy and utility sectors
outperform, while technology enjoyed a moderate rebound. Consumer stocks, however,
were most negatively affected by the spike in energy costs and further interest rate
increases. Over the past year, energy and utility stocks outperformed by a wide margin.
Mid-Caps: The Russell MidCap index gained 5.9% during the third quarter and was up
25.1 % during the past twelve months. Mid-caps outperformed both large- and small-cap
stocks.
Small-Caps: The Russell 2000 added 4.7% in the third quarter and was up 18.0%
during the past twelve months.
International Equities: The MSCI EAFE index rose 9.8% in the third quarter led by
rebounds in Japan and South Korea. The index was up 22.8% over the past year.
~~ ..
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT 4
r r~ r rr r r r r r r Ilr r r r r rr rr r r
SeptembeE30l 005 ~ Bond Yields Rose in the Third Quarter, 2005
Bond Yields Moved Higher in Q3
Major Index Performance through 9/30/05
s
6
4
2
0 ~-
-2
Agg Tr TIPS Govt Corp Sec HiYd
^ 3-Nbs. -0.67 -1.12 0.02 -0.53 -1.09 -0.23 0.92
^ YTD 1.82 2.04 2.73 1.99 1.24 1.93 2.06
^ 1-Y r. 2.80 2.48 5.31 2.73 2.57 3.13 6.70
Overview: Bond yields rose in the third
quarter in the face of firm economic
momentum, further Federal Reserve rate
hikes, signs of hurricane-related deficit
spending and rising inflation.
Yields and Yield Curve: The yield on
the 10-year T-note increased to 4.33%
on September 30 from 3.94% at the end
of June, while the 3-month T-bill rose to
3.39% from 3.08%. The yield curve
shifted higher and remained flat.
Investment Grade: The Lehman Aggregate Bond Index fell 0.68% in the third quarter
following a 3.01 % jump in the second quarter. The index was up 2.80% from a year ago.
Sector Performance: Treasury and investment grade corporate securities
underperformed during the quarter, while inflation protection bonds (TIPS) posted slightly
positive returns. Credit spreads remained relatively steady at historically low levels.
High Yield: The Merrill Lynch High Yield Master Bond Index gained 0.92% in the third
quarter following 2.61 % in the second quarter, and was up 2.06% year-to-date, or slightly
ahead of the Lehman Aggregate. The high yield market, while more volatile, has
significantly outperformed the broad bond market during the past three years, though
weakness was apparent in the month of September.
- ~;~.<-
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT 5
~r ~ ~ . r ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r ~
Period Ending
September 30, 2005
Bond Fell in Q3 on Fed /Inflation Worries
Yield Curve Flattened... ...and Long Maturities Underperformed
5.5 12
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
10
10
8
6
4
2
0
-2
-4
-6
0 5 10 15 20
Years to Maturity
25 30
Trcustrn~ Yield Cru-rc Suurcc~: PaclSc~t
Quality Spreads Stayed Relatively Low
200
150
100
~ ~ I ^ 3-Nbs. -0.67 -1.12 0.02 -0.53 -1.09 -0.23 0.92
50 ^ YTD 1.82 2.04 2.73 1.99 1.24 1.93 2.06
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 ^ 1-Y r. 2.80 2.48 5.31 2.73 2.57 3.13 6.70
l U-Yr. "A "-Rcrtcd Corp. ns. Trerrsun~ Source: Merrill Lunch Aggrc gcue & Sc~etor Re~lurrts Sow-ce: Lehman Brothers, Merrill Lynclr
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT s
3Nb
0
83 6Nb 2Yr
0
73
02
0 5Yr 10Yr 30Yr
1
.
^ 3-Nbs. .
-
. -
.26 -2.25 -3.92
^ YTD 2.13 2.07 0.69 -0.05 1.77 7.30
s 1-Y r. 2.60 2.46 0.67 -0.15 2.07 9.60
I I'PC1.Sl U•V' Rettrr•us .S l7lll"('P:LPIiIII(Iq l~I'o fII PI',1'
TIPS/High Yield Outperformed in Q3
s
6
4
2
0
-2
r r r Ir r rr r r r~ rr r r r r r r r r r
Period Ending ~ Investment Outlook: Current
September 30, 2005
Moderately Overweight Equities
Overweight (OW) Large-Caps.
Moderate OW Growth vs. Value.
Neutral/Underweight (UW) Mid-Caps
UW Small-Caps.
Modest OW in International
Fixed-Income Neutral Duration
OW Treasuries.
UW Corporate Bonds, Mortgages.
UW High-Yield.
Increased TIPS exposure.
Strategy
• We expect the pace of economic growth to
slow to approximately 23/4% - 3'/a% over the
next six months as the near-term effects of
the hurricanes dislocate jobs, curb
discretionary spending, and trim profit
margins. The risk of recession remains
relatively low however.
• Capital spending is expected to continue
growing faster than consumer spending.
• Headline inflation pressures have intensified
due to higher energy costs, and the risk of
selective pass-through will push core inflation
moderately higher, supporting the Fed's plan to raise interest rates gradually in the months ahead.
• The dollar will likely remain under longer-term downward pressure on atrade-weighted basis.
• We continue to recommend a modest overweight position in stocks within current asset allocation
ranges. However, we recognize that some of the factors that have favored equities (steep yield curve,
low yields, and easy profit comparisons) are changing and not as favorable. We will continue to be
very price sensitive in entry and exit points and emphasize companies with consistent growth. We will
likely view any significant market pullback as an opportunity to build equity positions, especially if
energy prices and bond yields moderate.
• In fixed-income portfolios, we anticipate moderately higher yields and a further flattening of the yield
curve, though much of the move has already occurred. We also see credit spreads as vulnerable
given their relatively low level. In this environment we favor a neutral duration maturity structure, and
an underweight position in corporate bonds and mortgages. We favor TIPS as an inflation hedge.
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT
Period Ending Energy /Utilities Led Market in 3rd Quarter
September 30, 2005
E porgy /Utilities Led Market in Q2 Valuations Reasonable but not Cheap
35
50
40 ~, 30
30 '~
20 25
10
0
~
r-
_ ~
~
lei
.~. ,~
20
-10 15
-20
Disc Stpl Engy Fin Hlth Ind Tech Mat Tel lttil
10
^ 3-Mos. -0.9 3.1 1 8.2 0.7 1.4 2.4 5.9 1.9 -1.1 7.3
YTD -74 31 418 17 50 26
^ - - -0.1 -6.1 -5.5 23.6 5
^ 1-Y r. 5.1 11.3 48.5 6.1 10.4 7.2 13.4 2.0 2.3 38.7 7
Sector Performance S&P 500 Borate: FactSe[ 7
Strong Profits Growth to Slow Yields Steady but Inflation Higher
40%
30%
20%
10%
0%
-10%
-20%
-30%
9%
8%
10-Yr. -CPI
7%
6%
5%
4%
3%
2%
1%
0%
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05
S&P Olr. Earnings (YOY%r) - Olire fs est. Source: "I'rusco Calrilal 10-Yr-. Trcasur~~ °Io) & CP/ (YOY%) Source: FRB, Labor Dclrt.
City of Winter Springs General Employees' Pension Plan
TRUSCO CAPITAL MANAGEMENT ~ 8
^~ ~ ~ ^~ ~ r . ~ . . r ^~ ^~ ~ III. ~ ~ . ~
Period Ending I Account Activity Summary
September 30, 2005
Please refer to appendix
for full disclosure.
~ :_ x
,*
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT 9
Period Ending
September 30, 2005
Performance Comparisons
Please refer to appendix
for full disclosure.
Year Inception
to Date Trailing Trailing Trailing Trailing to Date
~ Quarter 9 Months 12 Months* 36 Months* 60 Months*120 Months"142 Months*
•.
Total Equity _ ~ ~~h: 3.96% 3.36% 15.21% 16.99% 3.11% 10.36% 10.86%
SunTrust Retirement High Grade Growth Fund
S & P 500 Barra Growth Index
S & P 500 Index
SunTrust Retirement High Grade Relative Value**
S & P 500 Barra Value Index
S & P 500 Index
STI Classic Small Cap Growth Fund
Russell 2000 Growth Index
STI Classic Small Cap Value Fund
Russell 2000 Value Index
STI Classic International Equity Index Fund
MSCI EAFE Index
MSCI SAFE GDP Index
SunTrust Retirement Mid Cap Equity Fund
Russell Mid Cap Index
S & P Mid Cap 400 Index
0.91 % -2.61 % 5.09% 9.32% -0.53% 10.72% 10.95%
3.78% 1.99% 10.66% 13.36% -5.46% 8.70% 10.11
3.60% 2.77% 12.25% 16.72% -1.49% 9.49% 10.60%
3.94% 6.91 % 16.69% 18.27% 2.45% 9.77% 10.20%
3.44% 3.54% 13.82% 20.16% 2.31% 9.82% 10.67%
3.60% 2.77% 12.25% 16.72% -1.49% 9.49% 10.60%
6.88% 5.30% 21.15% 24.76% 6.09% -- -
6.32% 2.51 % 17.97% 23.23% -2.54% 4.67% --
9.14% 8.61 % 23.87% 24.90% 19.37% 15.45% -
3.09% 4.02% 17.75% 24.89% 15.18% 13.32% 13.17%
10.86% 7.87% 25.52% 24.72% 2.25% 7.02% -
10,38% 9.10% 25.82% 24.61 % 3.11 % 5.81 % 6.77%
10.73% 6.63% 24.28% 23.81 % 1.63% 5.80% 6.57%
6.02% 13.51 % 28.27% 19.99% 1.36% -- -
5.92% 10.07% 25.10% 25.99% 7.17% 12.59% 13.15%
4.88% 8.92% 22.16% 22.11% 7.05% 14.14% 14.35%
-0.79% 1.78% 2.70% 3.49% 6.74% 6.55% 6.38%
SunTrust Retirement High Grade Intermediate`*` -0.32% 1.54% 2.41% - - -- -
Lehman Intermediate Aggregate Bond Index -0.39% 1.45% 2.24% 3.52% 6.18% -- --
Lehman Intermediate A+ Govt/Credit Bond Index -0.53% 1.15% 1.48% 2.85% 5.99 % 6.04% 5.90
SunTrust Retirement High Grade Bond Fund -0.88% 1.97% 2.96% 3.76% 6.88% 6.63% 6.46%
Lehman Govt Credit Bond Index -0.96% 1.76% 2.58% 4.13% 6.89% 6.59 % 6.43%
Lehman Aggregate Bond Index -0.67% 1.82% 2.80% 3.96% 6.62% 6.54% 6.43%
-Return is annualized.
** -Inception 6/30/2002. Longer term results are linked to the STI Classic Growth and Income Fund to show results prior to inception.
*" -Inception 10/20/2003.
fR'
T j ~~
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT ~ ~
~ ~ lll~ ^~ llll~ I~ i~ ~ ~ . r ~ . ~ ~ ^~ ~ lll~ ~
Period Ending Portfolio Composition
September 30, 2005
Total Cash
Equivalents
1.5%
Total Fixed
Income
30.2%
Total Equities
68.2%
SunTrust Retirement High Grade Growth Fund $ 3,108,572.60
SunTrust Retirement High Grade Relative Value Fund $ 2,447,488.89
STI Classic International Equity Index Fund $ 1,075,709.26
SunTrust Retirement Mid Cap Equity Fund $ 534,332.91
SunTrust Retirement Small Cap Growth Fund $ 285,647.68
SunTrust Retirement Small Cap Value Fund
Total E
uities $
$ 226,035.17
7
677
786
q
SunTrust Retirement High Grade Bond Fund
$ ,
,
.51
2,718,718.30
SunTrust Retirement High Grade Intermediate Bond Fund $ 681,405.24
SunTrust Retirement Reserve Fund
Please refer to appendix
for full disclosure.
City of Winter Springs General Employees' Pension Plan
$ 173,367.14
$ 173,367.14
27.6%
21.8%
9.6%
4.7%
2.5%
2.0%
24.2%
6.1
1.5%
1.5%
TRUSCO CAPITAL MANAGEMENT I 11
Period Ending SunTrust Retirement High Grade Growth Fund
September 30, 2005
Value Blend Growth
Large
Medium
Small
Investment Cateoorv
Large Growth
Please refer to appendix
for full disclosure.
The Fund seeks capital appreciation by
NAV: $54.63 investing primarily in large, well-
established domestic corporations. The
Assets (mil): $54.0 Fund is designed to comply with
guidelines that are based principally on
Florida laws governing the investment
of municipal retirement plans for fire,
police and general government
employees.
Security E uit Security E uit
Microsoft Corp. 3.4% Honeywell Int'I 2.4%
Exxon Mobil Corp. 3.3% Health Mgmt Assoc. 2.3%
General Electric Co. 3.0% Oracle Corp. 2.2%
American Express Co. 2.6% Bed Bath & Beyond 2.1
Baxter International 2.5% Chubb Corp. 2.1
UIVIUCIIU TICIU
Market Capitalization ($bil)
5 Yr Return on Equity
5 Yr EPS Growth
Price to Book
Price to Earnings (FY1)
Fund S&P 500 Index
1.3% 1.8%
71.7 88.7
20.0 16.0
11.0 5.6
2.9x 2.8x
16.9x 15.8x
Consumer Discretionary
C
S[
l
onsumer
ap
es
Energy 5'
Fin
n
i
l
a
c
a
s
Healthcare
I
i
d
t
l
n
us
r
a
s
I
f
ti
T
h
l
n
orma
on
no
ec
ogy
0.9
Materials 2.9
Telecom Services 1.1
3.1
Utilities 0.0 %
3.6
Cash: 0.0%
U.S. Stocks: 100.0%
Non-U.S. Stocks: 100.0%
U 5 Slacks
cash lwo°~<
o mo
NomU.S. SloUcs
0.0'6
ia.9%
10.7
9.6
^ 10.3
1
13.5
13.3
11.1
20.1
19.5
X21.8%
1 5.3
^ Fund
® S&P 500 Index
Annualized
Three One Three Five Ten Inception
Months YTD Year Year Year Year 04/01/1990
Fund 0.9% -2.6% 5.1 % 9.3% -0.5% 10.7% 11.6%
S&P 500 Index 3.6°~ 2.8°'0 12.3°% 16.7°~ -1.5°% 9.5°~ 11.0°;0
Lipper Large Cap Growth Index 5.2% 3.8% 14.2% 13.9% -8.8% 6.1 % 9.1
City of Winter Springs General Employees' Pension Plan TRLISCO CAPITAL MANAGEMENT 12
~ ~ ~ ~ ~ ~ ~ ~ ~ i ~ ~ ~ ~ ~ r ! ~ ~
Period Ending I
~~ t..„~ ~ ~~ ~~~- ~ ~ ~ r~Tr~ ~ ~t ~ ~~1 i'Q
~~~ent
High
Grade Growth
Fund
Please refer to appendix
for full disclosure.
The stock market rallied sharply in July
on good economic and earnings news
but traded back down in August and
September as energy prices spiked
and hurricanes disrupted the economy
of the South. The Fund finished the
quarter up 0.9% versus the S&P 500
index return of 3.6%. The best
performing sectors again were Energy
and Utilities, two sectors in which we
are underweight. However, our
overweight in Technology helped as it
compromised the third strongest
sector. The worst performing sectors
for the quarter were Telecom Services,
Consumer Discretionary and
Financials. The Fund has a lowered
Financials weighing as top line growth
becomes more difficult to attain. We
still foresee amid-cycle slowdown with
decelerating earnings growth, which
should be catalyst for large-cap quality
growth stocks. The valuation
compression in those stocks leaves
them at a relative discount to the
market, therefore large-caps look
particularly attractive.
Fund Manager:
Elliott Perny, CFA
- - .. -
1998 1999 2000 2001 2002 2003 2004 2005
First Quarter 15.4% 5.6% 0.2% -4.8% 2.4% -2.2% 1.3% -3.6%
Second Quarter 5.7% 5.1 % 0.6% 5.8% -10.9% 9.6% 1.0% 0.1
Third Quarter -12.4% -7.7% 2.6% -13.6% -14.9% 2.0% -3.4% 0.9%
Fourth Quarter 25.9% 14.8% -1.7% 12.3% 4.0% 10.4% 7.9%
Fund 34.7% 17.6°ro 1.6°~0 -2.3°io -19.3°io 20.9°~0 6.6% -2.6%
S&P 5001ndex 28.8°~ 21.1°o -9.2°b -11.9°% -22.1 "a 28.7°~ 10.9°~ 2.8°-~
Lipper Large Cap Growth 25.7% 28.0% -10.9% -18.0% -24.2% 27.0% 7.5% 3.8%
~ iii i- ~ •~ ~• ~ ~~
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0 I
Apr-90 Apr-92 Apr-94 Apr-96 Apr-98 Apr-00 Apr-02 Apr-04
Fund S&P 500
MPT Statistics /Other Measurements -
3 Year
Alpha Beta R-Squared Sharpe Ratio Std. Deviation
Fund -0.30 0.80 89.19 0.83 9.30
S&P 500 Index 0.00 1.00 100.00 1.39 10.92
~ , ~3~s.
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT 13
Period Ending I SunTrust Retirement High Grade Relative Value Fund
September 30, 2005
Value Blend Growth
Cusip: 990001182
Large NAV: $13.65
Medium Assets (mil): $52.7
Small
Please refer to appendix
for full disclosure.
Investment Cateao
Large Value
.. -
Security %Equity Security %Equity
Exxon Mobil 2.1 % Applied Materials 1.8%
Agilent 1.9% Citigroup 1.8%
Principal Financial 1.9% Microsoft Corp. 1.8%
ConocoPhillips 1.9% Anadarko 1.7%
Burlington Res. 1.8% Pfizer Inc. 1.7%
• ~ • • ~ - -
Barra
Characteristic Fund Value
Dividend Yield (Current) 1.9% 2.1 °%
5 Year EPS Growth (Hist.) 13.2% 3.4°%
Market Capitalization ($bil) 70.2 B 58.1 B
Price-to-Book 2.7x 2.Ox
P/E (12 months trailing) 16.8x 13.8x
Return on Equity 19.8% 20.3%
The Fund seeks long-term capital Cash: 3.2%
appreciation with a secondary goal of Stocks: 96.8%
current income by using avalue-
oriented investment strategy. The
Fund is designed to comply with
guidelines that are based principally on
Florida laws governing the investment .,.
of municipal retirement plans for fire, - '
police and general government
employees.
.~ -
Consumer Discretionary 9'4°~°
11s%
s.z°r°
Consumer Staples
2.5%
1o.a %
Energy
10.0
Rnancials 21 .8 i°
35.9
Healthcare 13.1 %
7.8
Industrials 13.4
s.,
1 zs %
Information Technology °
~ 3
0
Materials 3.7 %
4.2
z.a
Telecom Services
5.9%
3
6% ~ FUnd
Utilities .
s.a ~; ~ Barra Value Index
- -. - -
Annualized
Three Year to One Three Inception
Months Date Year Years 6/30/02
Fund 3.9% 6.9°io 16.7% 18.3% 10.1
Barra Value Index 3.4°t 3.5"-. 13.8°~ 20.2°~ 10.4°
S&P 500 3.6% 2.8% 12.3% 16.7% 8.8%
~:ti~ ,~
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT 14
~~ (~ ~ ~- ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ I~
Period Ending SunTrust Retirement High Grade Relative Value Fund-
September 30, 2005 continued
Two devastating hurricanes and 2002 2003 2004 2005
an uncompromising Fed First Quarter N/A -4.1% 2.4% 1
7%
combined to rewrite the third Second Quarter N/A 13.5% 2.6% .
1.2%
quarter's storyline. Energy prices Third Quarter -17.4% 2.1% 0.1% 3.9%
spiked, interest rates rose, but Fourth Quarter 6.5% 14.1 % 9.1
equities still advanced, with most
of the gain occurring early on.
Energy and technology stocks led Fund -12.1 % 26.7% 14.7% 6.9%
the advance, while consumer, Barra Value -12.6% 31.8% 15.7% 3.5%
telecommunications, and S&P 500 -10.3% 28.7% 10.9% 2.8%
financials struggled. Market
action reflected concern over .
, , ~ ~ ~ ~ ~ ~ . , ~ ~ ~
consumer resiliency and
durability when faced with
growing economic headwinds,
even as overall corporate $1a,ooo
, _
-
profitability maintained a robust $13,000 ~ /' ~~ '
pace. $12,000 _
In the third quarter
the Barra $11,000 _ ~
, $10,000 _ -
Value Index gained 3.4% and
$9,000
benefited from a September ,
stam ede into ener
p gY, Yet still $8,000
underperformed growth. Fund $7,000 -
~~~ S~~ oe~
Mar Jun sep~
oec March June _ - --
Sept Dec March June
sep~
perfOrmanCe Came In SllghtlY -SunT rustRetirementHigh GradeRelativeValue S&P/Barra500 Value
ahead of the index for the quarter.
Fund Manager:
Charles B. Arrington, CFA
Please refer to appendix
for full disclosure.
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT 15
Period Ending I STI Classic Small Cap Growth Stock Fund
September 30, 2005
Value Blend Growth
Large
Medium
Smal I
Investment Cateoorv
Small Growth
Ticker: SSCTX The fund seeks long-term
Expense Ratio: 1.19% capital appreciation by
investing in the stocks of
NAV: $22.06 companies with market
Assets (mil): $1,270 capitalization between $50
million and $2 billion at the
time of purchase.
Industry Concentration
Please refer to appendix
for full disclosure.
Securitv % EQUity Securitv % Equity
Protein Design Labs 1.1 % Genlyte Group 0.9%
Flow Intl 1.0% Gevity HR 0.9%
Intuitive Surgical 1.0% Jos A. Bank Clot hier 0.8%
Ceradyne 0.9% NICE-Systems 0.8%
Aspect Medical 0.9% Ventiv Health 0.8%
Characteristic
Dividend Yield (Current)
EPS Growth (3 yr est.)
Market Capitalization ($bil)
Price-to-Book
P/E (FY1 Est)
Return on Equity
Russell
Fund 2000 Growth
0.3% 0.5%
20.0% 20.3%
1.0 1.1
2.8x 3.Ox
19.6x 21.6x
13.1% 11.8%
Consumer Discretionary
Consumer Staples
Fsergy
Rnancials
Healthcare
Intlustrials
Information Technobgy
Materials
Telecom Services
Utilities
Cash: 3.4%
U.S. Stocks: 96.6%
^ Fund
^ Russell 2000 Growth Index
31.8%
- -. - - -
Annualized
Three One Three Four Five Inception
Months YTD Year Years Years Years 10/08/1998
Fund 6.9% 5.3% 21.2% 24.8% 15.0% 6.1 % 15.7%
Russell 2000 Growth Index 6.3°i° 2.5°% 18.0°% 23.2°0 11.2°-0 -2.5°% 9.3"0
S&P 600 Small Cap Growth Index 6.6°~0 8.7°~0 23.9°0 24.2°~~ 16.7°% 7.3°ro 15.3°~o
Lipper Small Cap Growth Classification 5.7% 3.8% 18.6% 20.4% 10.0% -2.5% 12.5%
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT 16
^r +~ ~ r ~ ~ rt ~ ~ s rl ~ ~ ~ ~ ~ ~ ~ ~
Period Ending STI Classic Small Cap Growth Stock Fund -continued
September 30, 2005
Fueled by better than expected
second quarter earnings and 30%
plus returns in the Energy sector,
small cap stocks posted strong gains
for the quarter. The Russell 2000
Growth Index gained 6.3%, outpacing
the large cap S&P 500 return of 3.6%
for the second consecutive quarter.
The Small Cap Growth Fund gained
6.9%, well ahead of both the Russell
2000 Growth and the Lipper Small
Cap Growth average return of 5.7%.
Strong stock selection and robust
performance in the Consumer
Discretionary, Healthcare, and
Industrials sectors provided more
than enough positive relative
performance to offset the Fund's
underweight position in the Energy
sector, which posted meteoric returns
for the quarter.
Fund Manager:
Mark Garfinkel, CFA
Please refer to appendix
for full disclosure.
~ - - .. -
1999 2000 2001 2002 2003 2004 2005
First Quarter -11.4% 16.4% -10.6% 1.1 % -6.4% 8.1 % -4.6%
Second Quarter 20.8% -0.1 % 16.0% -10.2% 24.2% -0.6% 3.3%
Third Quarter -5.2% 0.3% -22.8% -19.9% 9.7% -3.5% 6.9%
Fourth Quarter 18.8% -4.1 % 23.9% 6.2% 14.2% 15.1
Fund 20.6°0 11.8°~b -0.8°% -22.7°i° 45.6°i° 19.2% 5.3%
Russell 2000 Growth Index 43.1°~ -2'x.4°~ -9.2°~ -30.3°~ 48.5°~° 14.3°~ 2.5°~
S&P 600 Small Cap Growth Index 19.5°;~ 0.6°0 -1.2°0 -15.4°~ 37.3°~° 22.0°0 8.7°0
Lipper Small Cap Growth Classification 63.4% -6.2% -11.3% -29.7% 44.4% 10.7% 3.8%
$30,000
$25, 000
$ZO,ooo
$ i s, o00
$to,ooo
$s, o00
$o I I
Oct-98 Jul-99 Apr-00 Jan-01 Oct-01 Jul-02 Apr-03 Jan-04 Oct-04 Jul-OS
Fund Russell 2000 Grow th Index
• - - - -
3Year
Sharpe Std.
Alpha Beta R-Squared Ratio Deviation
Fund 0.3 0.9 0.9 1.4 4.7
Russell 2000 Growth Index 0.0 1.0 1.0 1.2 5.1
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT 17
~ ~ ~ ~ ~ ~ ~ ~ ~ ~' ~ ~i ~ ~ ~ ~ ~ ~ ~
SeptembeE30l 005 STI Classic Small Cap Value Fund
Value Blend Growth
Large
Medium
Small
Investment Cateaorv
Small Value
Ticker: SCETX The fund seeks long-term
Expense Ratio: 1.22% capital appreciation and
income by investing in the
NAV: $21.91 stocks of companies with a
Assets (mil): $725.4 market capitalization between
$50 million and $3 billion.
Securi % E ui Securi % E ui
Harris Corp. 3.5% CHC Helicopter 2.0%
Cooper Cos. 3.1 % CKE Restaurants 1.9%
Fair Isaac Corp. 3.0% Wabtec 1.8%
Graco Inc. 2.4% Intrawest Corp. 1.7%
Airgas Inc. 2.2% FactSet Research 1.7%
Characteristic Fund
Dividend Yield (Current) 1.4%
Est. 3-5 Yr EPS Growth 14.1
Market Capitalization ($bil) 1.9
Price to Book 2.3x
Price to Earnings 17.6x
Russell
2000 Value
1.7%
11.0°io
1.0
1.8x
17.7x
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Information Technology
Materials
Telecom Services
Utilities
32.8°0
^ Russell 2000 Value Index
Please refer to appendix
for full disclosure.
Three
Months YTD
Fund 9.1 % 8.6%
Russell 2000 Value Index 3.1°0 4.0°0
Lipper Small Cap Value Index 4.6% 6.0%
~W
City of Winter Springs General Employees' Pension Plan
Annualized
One Three Five Ten Inception
Year Year Year Year 8/31/1994
23.9% 24.9% 19.4% 15.5% 16.0%
17.8°% 24.9°~0 15.2% 13.3°~0 13.6°%
19.5% 25.9% 15.3% 12.9% 13.1
TRUSCO CAPITAL MANAGEMENT 118
Cash: 2.2%
U.S. Stocks: 82.7%
Non-U.S. Stocks 15.1%
cash
z 2~e
Nm-U S. Stacks U 5 Sracks
B2 )°ie
t5 t9;
~l tr ~ IIII~ ~ ~ ~ r rr ~ ar t~ ~ r ~ a^~ ~^^~ ,r ~
Period Ending STI Classic Small Cap Value Fund -continued
September 30, 2005
The STI Classic Small Cap Value
Equity Fund returned 9.1
during the third quarter versus
3.1 % for the Russell 2000 Value
Index. An overweight position in
Industrials coupled with
investments in Freight Car
America and LSI Industries
significantly drove the Funds out
performance. In the Information
Technology, a slight sector
overweight and a position in
Harris Corp. contributed to the
Fund exceeding the benchmark.
Undecided economic indicators
and uncertainty in the financial
markets continued this quarter
from both rising interest rates
and high energy costs. Strict
discipline adherence drives Fund
performance over long time
periods, directed by our bottoms-
up, dividend paying investment
process preferring quality stocks
over risky, unprofitable
companies.
Fund Manager:
Please refer to appendix Brett Barner, CFA
for full disclosure.
~ - - -
1998 1999 2000 2001 2002 2003 2004 2005
First Quarter 9.7% -13.3% -4.1% 5.5% 9.7% -6.4% 5.7% -1.9%
Second Quarter -8.9% 19.8% 5.9% 8.9% -1.8% 17.1% 3.9% 1.4%
Third Quarter -22.0% -8.1 % 6.7% -8.1 % -12.6% 7.9% 0.2% 9.1
Fourth Quarter 11.0% 1.9% 9.0% 14.9% 4.3% 15.9% 14.1%
Fund -13.5% -2.7°~0 18.0% 21.2% -1.7°0 37.1% 25.5% 8.6°i°
Russell 2000 Value Index -6.5°~ -1-5°~ 22.8°~ 14-0°~: 11.4°~ 46.0°~ 223°„ 4.0°,:,
Lipper Small Cap Value Index -6.7°/p 1.9% 16.1% 17.2% -11.2% 47.5% 20.7% 6.0%
555.000
$50.000
$45,000
$ao,°°°
$35,000
$30,000
$25,000
$2°.000
$,5.°~
$,°.°~
$5.000
Sep-94 Sep-95 Sep-96 Sep-97 Sep-98 Sep-99 Sep-00 Sep-Ol Sep-02 Sep-03 Sep -04
Fund Russell 2000 Value
. - - - -
5 Year
Alpha Beta R-Squared Sharpe Std. Deviation
Fund 0.55 0.78 89.46 1.22 13.99
Russell 2000 Value Index 0.00 1.00 100.00 0.76 16.91
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT ~ 9
r r r r ril rr ~~ r~ r rs ~I r~ r ~ r ~.~.
SeptembeE30l 005 ( STI Classic International Equity Index Fund
Please refer to appendix
for full disclosure.
Value Blend Growth Ticker: SIEIX The Fund seeks to provide
Large
Expense Ratio:
0.66% diversification and capital
appreciation by investing in
Medium NAV: $12.66 securities of companies
Small Assets (mil): $606.22 headquartered or based in
foreign countries to replicate
Investment Category the Morgan Stanley EAFE
Foreign Stock GDP Index.
.. -
Securitv %Equity
Securitv %Equity -
Total S.A. 1.8%
BP PLC
1.2% Consumer Discretionary
ENI S.p.A. 1.8% Mitsubishi UFJ Financial 1.1% Consurrer staples 5
s
Toyota Motor Corp. 1.5% Deutsche Telekom AG 1.1% .
Siemens AG 1.4%
Banco Santander
1.0%
Fnergy 7.s%
EON AG 1.3%
Allianz AG Holding
1.0% 79
Financials
• • • -
Heatthcare 5.6
MSCI 5.69b
Characteristic Fund EAFE GDP Industrials
Dividend Yield (Current) 2.3% 2.3% s.s%
EPS Growth (5 yr est.)
11.0% 11.0% Information Technology 6.s%
Market Capitalization ($bil)
45.3 45.3
Materials 7.3
7 3
Price-to-Book 2.3x 2.3X 7.4
P/E (12 months trailing) 16.Ox 16.Ox Telecom services 7.a%
Return on Equity 16.1 % 16.1 % utilities 6.a %
s.a
Cash: 1.0%
Non-U.S. Stocks: 99.0%
U.S. Stocks: 0.0%
U. S. Stocks / Non-U.S Stocks
° °~0 99 0~0
~a_, ~ -
13.2
13.2
27.9
27.9
11s%
11.6%
^ Fund
^ MSCI EAFE GDP Weighted
- -. - -
Annualized
Three Year to One Three Five Ten Inception
Months Date Year Years Years Years 6/01/1994
Fund 10.9% 7.9% 25.5% 24.7% 2.3% 7.0% 6.6%
MSCI EAFE GDP Weighted 10.7°0 6.7°~0 24.3°~0 23.8°% 1.6°0 5.8°0 5.7°~a
Lipper International Funds Average 11.0% 9.6% 25.2% 22.8% 2.0% 6.6% 6.4%
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT 20
rr ~ ~ ~^r a! ~ ~ ~ r ~ ~1 ~ rr ~ ~ ~ ~ ~ ~
SeptembeE3012005 ~ STI Classic International Equity Index Fund -continued
The MSCI EAFE GDP was up 10.7% in
the third quarter. The best performing
sectors were Materials +17.7%, Energy
+17.5%, and Consumer Discretionary
+12.8%. The weakest sectors were
Information Technology +6.7%, Utilities
+5.6%, and Telecommunications
Services +4.4%. From a country
standpoint, Japan led the way at
+19.2% and was followed by Norway
+15.2% and Austria +12.4%. The worst
performing markets were Portugal
+5.7%, Singapore +4.6% and Ireland
+1.8%. Investors continued to seek out
stocks that were trading at lower
valuation multiples. But in a reverse of
recent trends, investors emphasized
stocks with lower dividend yields. In
addition, small and mid-cap stocks
continued to outperform larger cap
stocks. The Fund tracked its
benchmark well up 10.9%.
Fund Manager:
Chad Deakins, CFA
Co-Manager:
Andrew Atkins
1998 1999 2000 2001 2002 2003 2004 2005
First Quarter 17.6% 1.9% -0.6% -12.2% 0.9% -8.2% 4.8% -1.0%
Second Quarter 4.8% 4.3% -4.3% -1.4% -1.5% 20.1% 0.2% -1.7%
Third Quarter -13.0% 5.7% -8.5% -15.5% -20.5% 8.9% -0.9% 10.9%
Fourth Quarter 21.3% 16.4% -4.7% 4.5% 5.7% 17.0% 16.4%
Fund 30.0% 30.7% -17.1°i° -23.5!° -16.5% 40.5°i° 21.1°ro 7.9%
MSCI EAFE GDP Weighted 25.t°% 29.5°~0 -15.1°~~ -23.3°% -17.3°0 40.0°~0 20.2" 6.7°-0
Lipper International Funds Average 12.7% 37.8% -14.7% -i9.3% -16.7% 34.7% 18.1% 9.6%
$25, 000
$20, 000
$15, 000
$10, 000
$5,000
Jun- Jun- Jun- Jun- Jun- Jun- Jun- Jun- Jun- Jun- Jun- Jun-
94 95 96 97 98 99 00 01 02 03 04 05
Fund MSCI EAFE GDP Weighted
Please refer to appendix
for full disclosure.
Fund
MSCI SAFE GDP Weighted
Lipper International Funds
~' ;
City of Winter Springs General Employees' Pension Plan
3 Year
Alpha Beta R-Squared Sharpe Ratio Std. Deviation
0.11 0.97 0.99 1.97 11.73
0.00 1.00 1.00 1.84 12.02
-0.08 0.98 0.91 0.47 11.93
TRUSCO CAPITAL MANAGEMENT ~ 21
r ~ ~ +~^~ I~ rr ~ i r1 i. rr s ~ ~ ~ ~ .r ~ ~
Period Ending I SunTrust Retirement Mid-Cap Equity Fund
September 30, 2005
Value Blend Growth
NAV: $32.28
Large Assets (mil): $32.70
Medium
Small
Please refer to appendix
for full disclosure.
Investment Cateao
Mid-Cap Blend
.. -
Security E uit Security Equity
McGraw -Hill Cos. 1.7 % Phelps Dodge Corp. 1.3%
Eaton Corp. 1.5°/ Southwest Airlines Co. 1.3%
Bear Stearns Cos. 1.4% Lincoln National Corp. 1.2%
Coventry Health Care Inc. 1.4% Pilgrim's Pride Corp. 1.2%
Amerada Hess Corp. 1.3% Edison International 1.1%
I .. ® ..
The Fund seeks long-term capital growth Cash: 0.0%
by investing in domestic corporations with Stocks: 100.0%
a market capitalization between $1 billion
and $10 billion. The Fund is designed to
comply with guidelines that are based
principally on Florida laws governing the ; ° - us sI~L~
investment of municipal retirement plans ,mo',~
for fire, police and general government cap,
employees. ~~'`
Consumer Discretionary
Consumer Staples
Energy
Financials
4.6%
I 5.3
~ s.1
7.7
~a%
17.3
~ 15.3%
20.5
13.1
7.2 %
14.3
Healthcare
Russell 1o.s %
Characteristic
Fund
Mid-Cap Industrials 10.7
Dividend Yield
1.2%
1.4% s s%
EPS Growth (5 yr est.)
12.7%
13.2°~b Inforrmtion Technology
Market Capitalization ($bil)
7
8
7
4 Materials 5.1 %
. . a s%
Price-to-Book 2.4x 1.9x o.a %
P/E (12 months trailing)
15.Ox
17.9x Telecom Services
1.7%
Return on Equity 23.5% 20.1 % tnirues fi.3 %
a.2 %
City of Winter Springs General Employees' Pension Plan ~ TRUSCO CAPITAL MANAGEMENT 22
- -. - - -
Annualized
Three Year to One Three Five Inception
Months Date Year Years Years 12/1996
Fund 6.0% 13.9% 28.1 % 19.9% 1.3% 10.8%
Russell Mid-Cap Index 5.9% 10.1% 25.1°io 26.0°~0 7.2% 10.1°%
Lipper Mid Cap Core Funds Avg 5.2% 7.5% 20.3% 21.1 % 4.7% 10.7%
rr r. r~ r r ~r rr r. r~ r~ rl~ r r r r r r
Period Ending SunTrust Retirement Mid-Cap Equity Fund -continued
September 30, 2005
.- ~ - .-
The Russell Mid Cap was up 5.9%
in the 3rd quarter of 2005. Energy
stocks again led the way returning
30% for the quarter. The next best
sectors were Information
Technology +10.2%, and
Telecommunication Services
+9.11 %. The worst performing
sectors were Consumer Staples
+4%, Financials +3.3%, and
Consumer Discretionary -3.7%.
The Russell Mid Cap Growth index
returned 6.6% vs. the Russell Mid
Cap Value index return of 5.4%.
The SunTrust Retirement Mid Cap
Equity Fund performed in line with
its index. We made some changes
during the quarter adding to
Healthcare and trimming back on
Consumer Cyclical, and exiting
Consumer Retail particularly in the
apparel area.
Fund Manager:
Chad Deakins, CFA
Please refer to appendix
for full disclosure.
~ - - .. -
1998 1999 2000 2001 2002 2003 2004 2005
First Quarter 13.8% -0.6% 21.5% -11.7% -5.5% -4.9% 3.8% 1.6%
Second Quarter -1.3% 19.1% -1.5% 16.5°0 -13.4% 14.1% 0.5% 5.4%
Third Quarter -17.9% -3.1% 6.0°% -21.0% -15.3% 4..5% 0.2% 6.0%
Fourth Quarter 25.9% 35.8% -11.6% 24.5% 0.5% 13.2% 13.0%
Fund 16.04% 55.940 12.2°'° 1.2°0 -30.4°i 28.4% 18.0°0 13.9°i°
R~~sscn raid-~~~u i~,dex ~ ;_, _ ,e 2°:~ ~.a~~ -s.s°.~ -1s ~~, aa1-~ co.?°.5 10 1~o
Lipper Mid Cap Core Funds Avg 7.8% 26.2% 6.3% -4.9% -17.4% 36.1% 15.5% 7.5%
~ ~~~ ~ ~~
$35,000
$30,000
$25,000
$20, 000
$~ 5,000
$i o,ooo
$5,000
$o
Fund Russell Midcap Index
• - - - -
3Year
Alpha Beta R-S uared Sharpe Ratio Std. Deviation
Fund -0.37 0.98 0.90 1.51 12.20
Russell Mld-Cap Index 0.00 1.00 1.00 2.07 11.77
Lipper Mid Cap Core Funds -0.34 1.00 0.90 0.43 12.42
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT 23
r r~ r r wr r ^r r. r. ~r t~ r r r r~ r^i r~
Period Ending I SunTrust Retirement High Grade Bond Fund
September 30, 2005
Short Int. Lon Unit Value: $32.82
High Assets (mil): $241.54
Medium
Low
Investment Cateaorv
Intermediate-Term Bond
~ ~ - -
Sector Fund ML G/C A+
US Treasury 90.3% 50.2°ro
Agency/Gov Related 0.0% 25.1
Mortgages 0.0% 0.0%
Corporate Bond 9.0% 24.7%
Cash 0.7% 0.0%
37.8%
The fund seeks to provide a Cash: p.7%
high level of total return Bonds: 99.3%
through current income and
capital appreciation by Bonds
investing in domestic corporate ss.3 0
investment grade bonds rated
A or higher by major credit
rating agencies and U.S. Cash
0.7 0
Government securities.
~ ~
0-1 Year
1-3 Years
3-5 Years
Please refer to appendix
for full disclosure.
Characteristic Fund ML G/C A+ 5-7 Years
Average Rating TSY AAA
Average Coupon 4.5% 5.1 7-1o Years
Current Yeld 4.3% 4.9
Yeld-to-Maturity 4.3% 4.6 10 + Years
Average Maturity 6.7 7.2 d
Effective Duration
- 4.7
-. 4.9
-
-
^ ML G/C A+
Annualized
Three Year- One Three Five Ten Inception
Months to-Date Year Years Years Years 8/31/1999
Fund -0.9% 2.0°ro 3.0% 3.8% 6.9% 6.6% 7.8%
Merrill Lynch G/C A Rated and Abo~ Index -1.0°io 2.0% 2.6% 3.3% 6.7% 6.5% 7.5%
t
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT 24
r~ ~r r r r r r r ~r rr r~ r rr ~r ~r r r +~
Period Ending SunTrust Retirement High Grade Bond Fund
September 30, 2005
Interest rates rose across the yield curve
in the third quarter of 2005, led by a further
50 basis point increase in the Fed Funds
rate and heightened inflation concerns in
the aftermath of hurricane Katrina. We
expect the storm's long term impact to be
limited, and with the FED signaling
additional rate hikes the probability of the
yield curve inverting remains high in our
view. The higher rates drove the Fund's
negative return for the quarter at -0.9%
and took back some of the strong second
quarter gains. As a result, the Fund's
year-to-date performance of 2.0%, is
modestly below coupon income but
ahead of the Merrill Lynch
Government/Credit A or better Index.
Please refer to appendix
for full disclosure.
We remain committed to the risk-adverse
strategies implemented earlier this year.
Increasing the Fund's exposure to
Treasuries at the expense of the higher
quality spread sectors is the right move
with volatility levels at all time lows and
credit and mortgage spreads near historic
tights. We think our current defensive
portfolio structure will benefit greatly from
any return to more normal risk premiums
in the market.
Fund Managers:
John Talty, CFA
Perry Troisi
1999 2000 2001 2002 2003 2004 2005
First Quarter -0.4% 2.3% 3.2% -0.5% 1.6% 2.9% -0.1
Second Quarter -1.0% 0.7% 0.2% 4.2% 2.5% -3.0% 3.0%
Third Quarter 0.9% 2.5% 5.2% 5.7% -0.4% 3.3% -0.9%
Fourth Quarter -0.5% 4.9% -0.1 % 1.5% -0.1 % 1.0%
Fund -1 .1 % 10.7% 8.6% 11.4% 3.6% 4.1 % 2.0%
Merrill Lynch G/C A+ Index -2.2% 12.4°i° 8.2% 1 1 .6% 3.2°0 3.8% 2.0%
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000 ~-
A ug-89
Aug-92 Aug-95 Aug-98 Aug-01 Aug-04
Fund ML G/C A+
City of Winter Springs General Employees' Pension Plan
TRUSCO CAPITAL MANAGEMENT I 25
r rlr r r r r r r r r ~r rr r rir r r r r rr
Period Ending I SunTrust Retirement High Grade Intermediate Bond Fund
September 30, 2005
Short Int. Long Unit Value: $10.68
High Assets (mil): $137.42
Medium
Low
Investment Category
Intermediate-Term Bond
~ - -
Sector Fund Leh Agg Int A+
Treasury 56.2°0 23.7°ro
Agency/Gov Related 0.0% 16.0%
Mortgages 37.1 % 48.2%
Corporate Bond 5.5% 12.1
Cash 1.2% 0.0°0
•. -
Characteristic Fund Leh Agg Int A+
Average Rating TSY AAA/AA1
Average Coupon 4.7% 4.9°io
Current Yield 4.6% 4.9%
Yield-to-Maturity 4.7% 4.9%
Average Maturity (Years) 6.0 5.1
Effective Duration (Years) 3.3 3.4
Please refer to appendix
for full disclosure.
The fund seeks to provide a Cash: 1.2%
high level of total return through Bonds: 98.8%
current income and capital
appreciation by investing in Bonds
domestic corporate investment sa.a~o
grade bonds rated A or higher
by major credit rating agencies,
mortgages and U.S. Cash
Government Securities. 12°'°
~ ~
3.6%
0-1 Year
1.0%
1-3 Years 41.0%
40.7%
3-5 Years
5-7 Years
7-10 Years 6.2%
4.7%
Three
Months
Fund -0.3%
Lehman Aggregate Intermediate A or Better Index -0.4%
City of Winter Springs General Employees' Pension Plan
Year to
Date
1.5%
1.5%
0
42.9%
^ Fund
^ Lehman Agg Int A+
Annualized
One Inception
Year 10/31 /2003
2.4% 3.2%
2.3°0 3.2%
TRUSCO CAPITAL MANAGEMENT I 26
Period Ending ~ SunTrust Retirement High Grade Intermediate Bond Fund
Cnntomhcr Qfl 9nnF
Interest rates rose across the yield curve
in the third quarter of 2005, led by a
further 50 basis point increase in the Fed
Funds rate and heightened inflation
concerns in the aftermath of hurricane
Katrina. We expect the storm's long term
impact to be limited, and with the FED
signaling additional rate hikes the
probability of the yield curve inverting
remains high in our view. The higher
rates drove the Fund's negative return for
the quarter at -0.3% and took back some
of the strong second quarter gains. As a
result, the Fund's year-to-date
performance of 1.5%, is modestly below
coupon income but in line with the
Lehman Aggregate Intermediate A or
Better Index.
We remain committed to the risk-adverse
strategies implemented earlier this year.
Increasing the Fund's exposure to
Treasuries at the expense of the higher
quality spread sectors is the right move
with volatility levels at all time lows and
credit and mortgage spreads near
historic tights. We think our current
defensive portfolio structure will benefit
greatly from any return to more normal
risk premiums in the market.
Fund Managers:
John Talty, CFA
Perry Troisi
Please refer to appendix
for full disclosure.
2001 2002 2003 2004 2005
First Quarter N/A N/A N/A 2.2% -0.3%
Second Quarter N/A N/A N/A -1.7% 2.2%
Third Quarter N/A N/A N/A 2.4% -0.3%
Fourth Quarter N/A N/A N/A 0.9%
Fund N/A N/A N/A 3.7% 1.5%
Lehman Aggregate Inter. A+ Index 8.7% 9.6% 3.3°io 3.6% 1.5%
$11,000
$10,500
$10,000
$9,500 I I I I I I I I I I I ~
Oct- Dec- Feb- Apr- Jun- Aug- Oct- Dec- Feb- Apr- Jun- Aug-
03 03 04 04 04 04 04 04 05 05 05 05
Fund Lehman Agg Int A+
~r
~~ '~'^-
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT 27
~ ~ ~ ~ ~ ~ r ~ ~ ~ ~ ~r ~ ~ r ~ ~ ~ ~
~ciated more than 15%
SCO CAPITAL MANAGEMENT 28
Small Ca Fund
N CO $ 106.470 00 $ 134.097.00 82.28
$ 82.1x4.00 $ 171,011.00 66.39
LS IN $ 44.778.00 $ 1H3,090.00 63.55
C CO $ 153.954.87 $ 132,230.40 59.98
:O $ 270, S 1 2.00 $ 269, 340.75 57.1 4
PION $ 178.281.00 $ 209,440.00 56.08
$ 233,479.00 $ 247,590.00 52.39
$ 278, 250.00 $ 196,061 .25 45.28
COM $ 150,480.00 $ 184,301.08 45.06
:ORP $ 192,800.00 $ 195,440.00 44.81
J COM $ 85,752.00 $ 107,968.00 41.65
U $ 187.178.50 $ 204,063.00 40.29
$ 133,905.00 $ 137,537.52 39.47
$ 55,978.20 $ 189,699.00 38.61
JC C $ 377,927.00 $ 302,400.00 38.55
;OM $ 46,380.00 $ 53,410.00 38.19
INC $ 74,520.00 $ 199,853.50 37.84
$ 240,360.00 $ 235,626.00 36.35
$ 188.944.00 $ 221 , 474.50 35.94
3 CO $ 138,580.00 $ 44,764.80 34.81
$ 51.109.59 $ 98,689.36 34.37
EW $ 119,908.00 $ 139,425.00 31.47
3 INC $ 65,860.00 $ 128,149.50 29.72
LOGIES $ 110,743.78 $ 125,144.60 28.39
JG CO $ 85, 540.00 $ 1 27, 518.12 28.28
~ORP $ - $ 58,373.00 28.25
$ 209,660.00 $ 184,946.00 28.07
$ 186,266.36 $ 170,100.00 27.74
i INC $ - $ 144,105.00 27.71
OM $ 198,342.32 $ 104,988.40 27.14
$ 182,580.00 $ 155,496.00 27.05
31ES C $ 94,4H1.13 $ 104,647.95 25.95
$ 158,436.00 $ 33,168.00 25.61
$ 194,140.00 $ 175,273.00 25.47
$ 138, 986.40 $ 152, 369.35 24.70
7P DEL $ 270, 028.00 $ 231 , 684.00 24.38
$ 131,200.00 $ 173,357.50 24.36
~ $ 1 97, 522.00 $ 166, 951 .00 24. t 6
$ 115,433.00 $ 124,995.00 23.55
~M $ 208,670.00 $ 222,708.00 22.96
$ 162,222.50 $ 153,845.00 22.31
'M $ 143,614.00 $ 101,486.00 21.66
$ 219,954.00 $ 196,571.00 21.08
JRP C $ 193,152.00 $ 184,870.00 20.90
$ 168,469.21 $ 82,452.70 20.53
3 LTD $ 226,577.80 $ 228,012.50 20.33
ER COR $ 201,440.00 $ 170,065.00 19.54
$ 84,711.00 $ 72,090.00 19.21
$ - $ 47,944.00 18.91
$ 112,480.00 $ 79,824.00 18.64
$ - $ 72.051.20 18.44
$ 217,341.00 $ 202,982.00 17.37
$ - $ 154.452-00 16.90
IC DE $ - $ 107,709.00 16.54
$ - $ 44,983.19 16.49
LS INC $ - $ 174,735.00 15.41
$ - $ 152,347.50 15.37
$ - $ 101,650.00 15.34
CL $ 215,440.00 $ 129,735.00 15.11
Hi h G rad e Intermedia te B ond Fund
ATED MORE THAN 15"-6 - -
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ IIIIII~ ~
Period Ending '
September 30, 2005 FUnd Attl'IbUtIOCI SUI'YIYYIaI'y -Depreciated more than 15%
SunTrust Retirement Hi h Gra de E uit Fund
ESTEE LAUDER GCM CL A S - S 523,494.90 -15.40
SunTrust Retirement Hi h Gra de E uk Income Fu nd
LEGGETT & PLATT INC COM $ 99.861.06 S 158.711.4C -23.40
SunTrust Retirement Hi h Gra de Re lative Value Fu nd
FEDERAL NATIONAL MTG ASSN
BOSTON SCIENTIFIC CORP CO $
S 341,464.80
- S
S -
641,366.28 -20.16
-17.88
SunTnust Retirement Mid Ca Fund
ABERCROMBIE & FITCH CO CL
VERISIGN INC COM
AMERICAN EAGLE OUTFITTERS
BLOCK H 8 R INC COM
PIXAR INC COM 5
$
$
$
S 28L189.10
184,466.64
259.183.76
371.806.20
103.103.00 S
S
$
S
S -
-
227,417.45
353,153.46
- -26.67
-23.59
-22.96
-17.60
-16.46
SunTrust Retirement Hi h Gra de Bo nd Fund
NO SECURITIES DEPRECIATED MORE THAN 15°° - -
SunTrust Retirement Hi h Gra de Int ermediate B on d Fund
NO SECURITIES DEPRECIATED MORE THAN 15°° - -
Please refer to appendix
for full disclosure.
WESTELL TECHNOLOGIES INC $ 82,524.00 $ 42,784.56 -39.13
MOTIVE INC COM $ 125,118.00 $ 6,561.90 -36.15
HUTCHINSON TECHNOLOGY INC $ 154,040.00 $ 41,008.40 -32.17
FIRST BANCORP P R COM $ - $ 40,608.00 -30.42
SPECTRUM BRANDS INC $ 201.300.00 $ 90,314.25 -28.64
LEVITY CORP FLA CL A COM $ - $ 64232.00 -27.65
INFOCROSSING INC COM $ 177.074.00 $ 83,629.00 -26.30
INTRALASE CORP COM $ 103,986.00 $ 91,202.00 -25.03
IXIA COM $ 122,472.00 $ 96,482.89 -24.33
GANDER MOUNTAIN CO COM $ 41,040.00 $ 28,768.00 -21.14
CLICK COMM INC COM NEW $ 193,797.89 $ 172,980.21 -20.20
ULTRALIFE BATTERIES INC C $ 195,415.00 $ 93,024.00 -20.00
TRANSMONTAIGNE INC $ - $ 33,558.00 -19.33
GOTTSCHALKS INC COM $ 79,875.00 $ 57,456.00 -18.93
TARRANT APPAREL GROUP $ - $ 55,578.00 -18.76
MARINEMAXINCCOM $ 121,875.00 $ 32,193.87 -18.43
TRIPATH IMAGING INC COM $ 80,464.00 $ 132,375.00 -17.52
ARGON ST INC COM $ 255,600.00 $ 164,304.00 -17.35
TOLLGRADE COMMUNICATION I $ - $ 76,140.00 -17.14
BUCKLE INC COM $ - $ 95,116.00 -16.88
FEI CO COM $ 191.604.00 $ 121,275.00 -15.61
MAXTOR CORP COM $ 136.026.80 $ 45,037.01 -15.58
LHC GROUP INC $ 47,268.00 $ 60,255.00 -15.02
k. _
~~; '` ~'
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT 29
Period Ending Important Disclosure Information
September 30, 2005
INVESTMENT PERFORMANCE
Past performance is not indicative of future results. Performance data related to accounts managed by Trusco represents returns gross
of investment management fees. See Trusco's Form ADV, Part II for a description of investment advisory fees. The performance
information reported herein may be for a variety of products which have different methods of presenting performance data, i.e. net of
fees, gross of fees, or a combination of these. This information should not be evaluated independent of or without reference to the
investment advisory agreement that more specifically addresses applicable investment advisory fees.
Fees have a compounding effect on cumulative results. For example, assume the account achieves a 10% annual return prior to the
For use with deduction of fees each year for a period of ten years. If an annual fee of 0.5% of assets under management were charged each of the
Trusco Separately ten years, the resulting annual average return net of fees would be reduced to 9.48%.
Managed YIELD INFORMATION
Accounts, Yield information more closely reflects the current earnings of the Fund than the total return.
Common and In the absence of current fee waivers the yield would be reduced.
Collective Trust A SEC Yield relates aggregate net earnings of a fund to its aggregate net assets. In any given period a fund may distribute more or less
Funds, and than its actual income.
SunTrust
Retirement SECTOR WEIGHTINGS AND PORTFOLIO CHARACTERISTICS
Accounts The sector weightings and portfolio characteristics are presented as of the date shown in the left-hand corner of this presentation, and
may change without notice. A complete list of sector weightings and individual security positions for any specific period are available
upon request.
FORECASTING
Forecasting is based on current economic and market information, which may be revised at any time
REPRESENTATIVE CLIENT LIST
The list is intended simply to indicate a broad cross section of Trusco Capital Management, Inc. clients in the public and private sectors.
The selection of clients for the list is not based on performance criteria. This list should not be construed as an endorsement or approval
by the listed clients of Trusco Capital Management, Inc. or of the advisory services provided
ECONOMIC AND MARKET REVIEW
This perspective was prepared for clients and prospective clients of Trusco Capital Management, Inc. Neither Trusco nor any affiliations
make any representation or warranties as to the accuracy or merit of this analysis for individual use. Comments and projections are
based on information available at the time of writing and believed to be accurate, are for informational purposes only, and may not be
relied upon for future investing. Investors are advised to consult with their investment professional about their specific circumstances
before making any investment decisions.
FINANCIAL TERMS
Total Return -All performance calculations are total returns. Total return is comprised of dividend and interest income, realized and
unrealized gains and losses.
Estimated Annual Income - An estimate of the dividends and interest to be received over the next twelve months based on current asset
allocation and information.
`~;
<„
City of Winter Springs General Employees' Pension Plan TRLISCO CAPITAL MANAGEMENT
30
SeptembeE30l 005 Important Mutual Fund Disclosure Information
INVESTMENT PERFORMANCE
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns
may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. Returns are
shown net of fees. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than the original cost. For performance data current to the most recent month end, please visit our website at
www.sticlassicfunds.com. In the absence of current fee waivers the total return would be reduced. All returns greater than 12 months
have been annualized
YIELD INFORMATION
For use with STI Yield information more closely reflects the current earnings of the Fund than the total return.
Classic Funds In the absence of current fee waivers the yield would be reduced.
A SEC Yield relates aggregate net earnings of a fund to its aggregate net assets. In any given period a fund may distribute more or less
than its actual income.
GENERAL DISCLOSURE
An investor should consider the fund's investment objectives, risks, and charges and expenses carefully before investing or sending
money. This and other important information about the STI Classic Funds can be found in the fund's prospectus. To obtain a prospectus,
please call 1-800-428-6970, option 1, or by visiting www.sticlassicfunds.com. Please read the prospectus carefully before investing.
Mutual fund investing involves risk, including possible loss of principal.
STI Classic Funds are advised by Trusco Capital Management, Inc., which receives a fee for its services, and are distributed by BISYS
Fund Services, LP, which is not affiliated with Trusco Capital Management, Inc.
Investments in the STI Classic Funds are not insured by the FDIC or any other Federal agency nor are they guaranteed by any bank,
and may lose value.
INVESTMENT CONCERNS
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade
fixed income securities. The net asset value per share of equity mutual funds will fluctuate as the value of the securities in the portfolio
changes.
MPT STATISTICS/OTHER MEASUREMENTS
Alpha -Alpha is defined as the difference between the average realized return of a portfolio manager with private information and the
expected return of the passive strategy based upon public information only with equal systematic risk.
Beta - A measure of an investment's volatility, relative to an appropriate asset class.
R-Squared -Statistical measure of how well a regression line approximates real data points; an r-squared of 1.0 (100%) indicates a
perfect fit. r-squared measures how well the Capital Asset Pricing Model predicts the actual performance of an investment or portfolio.
Sharpe Ratio -The Sharpe Ratio (also known as Reward-to-Volatility-Ratio) indicates the excess return per unit of risk associated with
the excess return. The higher the Sharpe Ratio, the better the performance.
Standard Deviation - A statistical measurement of dispersion about an average, which, for a mutual fund, depicts how widely the
returns varied over a certain period of time.
HIGH GRADE MUTUAL FUNDS
The Fund does not invest in limited partnerships, real estate (including REITs), private placements, Rule 144A securities and certain
other non-publicly traded, thinly traded or restricted securities.
~ - _.
City of Winter Springs General Employees' Pension Plan TRUSCO CAPITAL MANAGEMENT ~ 31