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HomeMy WebLinkAbout2006 04 25 Document Corresponding to Regular 300Date: Apri125, 2006 DOCUMENT CORRESPONDING TO REGULAR AGENDA ITEM 300 FOR THE APRIL 25, 2006 REGULAR BOARD OF TRUSTEES MEETING. $OGDAHN CONSULTING LLC. S"nP~f9'~'J01u investmcnt clecisimrs JOSEPH $OGDAHN I'Rirrc~AL 340 West Central Avenue, Suite 300 g63 293-8289 Winter Haven, Florida 33880 ( ) $OGDAHN CONSULTING, LLC. S~P~~~ your investment decisions MICHAEL WELKER, CFA PAR'T'NER ~ SINIOR CONSULTANT 34p West Central Avenue, Suite 300 Winter Haven, Florida 33880 Office: (863) 293-8289 mike@bogdahnconsulting.com Fax: (863) 292-8717 simplifying your investment decisions MEMORANDUM TO: City of Winter Springs Defined Benefit Pension Plan FROM: Joe Bogdahn, CIMA DATE: April 10, 2006 Thank you for considering our firm. I am pleased to enclose our responses to your RFP for investment consulting services. We believe that true independence is a crucial requirement for any fund consultant, and I would like to take this opportunity to emphasize a few points that differentiate us from our competitors: • We area "professionally qualified independent consultant" as set forth in the Florida Statutes. We authored a White Paper' on pension consultants prior to the SEC's investigation, detailing the importance of independence and repercussions of conflicts. We have been interviewed and quoted in Forbes, The New York Times, The Miami Herald and Dow Jones News, as well as several web newsletters and local papers. • We provide our services on a flat-fee basis, with no percentage-of-assets kicker. We do not participate in any trading or soft-dollar arrangements. • With regard ro experience, we represent pension boards like yours in 70 Florida municipalities, and meet with each of our clients at least quarterly. Given this coverage, we have more contact with different pension boards, attorneys, actuaries and administrators each quarter than most of our competitors have in a full year. We work hard to provide top quality professional service, and I am confident that our clients are pleased. We have never been fired or asked to resi n. Few, if any, of our competitors can say the same. • As you know, all pension board trustees are fiduciaries to their plans, and are expected to make decisions as though they were prudent experts. We accept full fiduciary responsibility with each of our clients, without equivocation or exception. We detail this acceptance in our contracts, and serve as the prudent expert for our trustees. • We represent all three pension boards in our hometown of Winter Haven, and ' were honored last month by the Chamber of Commerce with their 2005 Industry Award. • TRUST, INTEGRITY, CONFIDENCE and RESPECT are the cornerstones of any ' successful business relationship. We always have and always will work hard to make sure our clients come first in our business dealings. In addition to checking our client references, I would encourage you to speak to the attorneys, ' actuaries, administrators, custodians and investment managers in the municipal market about our firm and our service. ' We would be honored to represent your Board, and would appreciate the opportunity to meet with you soon. 1 340 West Central Avenue • Suite 300 • Winter Haven, Florida 33880 ' Telephone (863) 293-8289 • Facsimile (863) 292-8717 www.bogdahnconsulting.com simplifying your investment decisions The City of Winter Springs Defined Benefit Pension Plan Nanvestment Consulting ServicesN RESP.ON~ES fiO REQUEST FOR PRrJP05AL ~RFP # 005/0~/KS) www. bogda h nconsu lti ng .come 340 West Central Avenue Suite 300 • Winter Haven, Florida 33880 Telephone (863) 293-8289 • Fax-(863) 292-8717 1 1 I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Contents Response to RFP Questions I. General Information Pages 1-5 II. Manager Searches Pages 6-7 III. Performance Measurement Pages 8-9 IV. Accounting and Reporting Pages 10-i1 V. Advisory Relationships Pages 12-13 VI. Pricing Pages 14 Exhibits Manager Search Report Exhibit 1 Sample Reports Exhibit 2 a) 3 sample performance presentation reports b) Asset allocation review and manager review reports c) Advent reports d) Morningstar attribution repots Representative Client List Bogdahn Consulting, LLC. ~~simplifying your investment decisions" Exhibit 3 ' General information ' 1. Company profile including name of firm and address. Please include information concerning staff turnover rates. ' BOGDAHN CONSULTING, LLC. 340 West Central Avenue, Suite 300 Winter Haven, Florida 33880 ' Telephone 863.293.8289 Primary Contact: Joseph Bogdahn, Principal BOGDAHN CONSULTING is a Registered Investment Advisory firm, registered ' with the Securities Exchange Commission and noticed filed with the State of Florida. BOGDAHN CONSULTING provides detailed analysis, portfolio accounting and performance measurement services for our clients, which include public and corporate pension plans, foundations and endowments and defined contribution plans. We are currently the largest independent consulting firm serving the Florida public pension marketplace. The firm was ' founded with the belief that the investment client should have the most current and unbiased information with which to prudently evaluate their portfolio allocations and performance. ' Our rim p ary business is our municipal pension fund monitoring ' services, and we are devoted to providing unparalleled personal service. Since the inception of the firm Bogdahn Consulting has not lost a single employee. We have 100% employee retention. ' 2. Do you have any physical locations in Florida? ' Bogdahn Consulting has two physical offices in the State of Florida. 340 West Central Avenue, Suite 300 605 Delaney Avenue Winter Haven, Florida 33880 Orlando, Florida 32801 863.293.8289 866.210.6809 ' 3. Have there been any NASD or SEC investigations of your firm that resulted in admonishment or other penalties? ' Our firm has never been subject to any investigation or litigation. Bogdahn Consulting, LLC. 1 ' "simplifying your investment decisions" ~ - _ _ 1 4. How many investment managers has your firm discharged or recommended the discharge of during the past five years? When and under what circumstances would you recommend the termination of a manager? We have recommended to our clients the termination of 10 different investment managers over the past 5 years. We continuously review manager performance and compliance to insure seamless change if product deterioration is evident. Our philosophy states that if any three of the below criteria are violated we recommend placement of the manager(s) on probation -manager(s) are notified by letter they are on a quarter by quarter review process. If the situation does not improve we will recommend a manager search for replacement. If any five of these criteria are violated we recommend termination and a subsequent manager search. 1) Regulatory oversight: Must comply with written policy statement and local ordinances. 2) Correlation to style or peer group: The manager's investment product must be highly correlated to an appropriate index, style category and peer group. All correlation coefficients must be greater than .90. This is one of the most critical parts of the analysis, since most of the remaining due diligence involves comparisons of the manager to the appropriate peer group. 3) Performance relative to a peer group: The managers performance must be above the 40% for the peer group for annual and cumulative periods (1,3, and 5-year returns). 4) Performance relative index: The manager must outperform the index, net of fees, for the trailing three and five year time period. 4 consecutive quarters of underperformance relative to the performance benchmark. 5) Performance relative to assumed risk: The manager must have above median risk- adjusted performance when measured against the manager's peer group as reflected by the fund's Alpha statistic, Sharpe ratio, Treynor Ratio, and Information Ratio. 6) Downside Volatility: The product must not have downside volatility greater than the index. This is measured by the up/down market capture ratio. 7) Minimum track record: The product's inception date should be greater than five years, and the same portfolio management team should have been in place for that same time period. 8) Servicing Issues: Significant service personnel changes /missed meetings. 9) Holdings consistent with style: The screened product should have no more than 20% of the portfolio invested in "unrelated" asset class securities. For example, a U.S. large cap stock fund should not hold more than 20% of its portfolio in non-U.S. stock investments such as cash equivalents, bonds or international securities. 10) Expense ratios/fees: The screened product should not be in the top quartile (most expensive) of its peer group. 11) Stability of the organization: There should be no perceived organizational problems. Examples include manager turnover, regulatory issues, assets coming in/out faster than the manager can handle, or problems in obtaining "best price and execution" in trading. Bogdahn Consulting, LLC. 2 "simplifying your investment decisions" ' This review process has enabled our firm to retain managers whose process may be out of favor instead of terminating them for performance reasons ' only. This review process also provides proactive recommendations to terminate managers with eroding fundamentals and replace them with alternative managers to maintain solid long term performance. ' Can this process be measured? Our client's peer universe rankings relative to policy benchmarks for the trailing five years as of 30 September, 2005 ' show that: ' • 93% plans rank in the top 40th percentile • 87% rank in the top quartile (25th percentile or better). • 40% are in the top decile (10th percentile or better). ' • The average for the 7% that are not in the top 40% are at the median. • Percentile rankings are compiled after investment management and custodial fees. 5. State what you believe distinguishes your consulting firm from your ' competitors. We have built our firm on personal service and attention to detail. We ' choose our new accounts carefully, being ever mindful that we do not want to do anything that may erode our capability to continue to provide top- notch service to our existing clients. ' Our oal is to serve as an advocate and uide for our clients in the 9 9 ' administration of the investment process. We support our clients with the best technology and access to information for reporting purposes and portfolio monitoring. We also provide the most objective and unbiased ' analysis available in the investment management community. We have also found that we are set apart from our competition in many ways, including: ' True Indeuendence - We are a fiduciary to our clients -without caveat or exception. As a fiduciary to our clients, our first and foremost concern is to make sure that every decision is made in the client's best interest. Our only ' compensation is in `hard' dollars pursuant to our contract with the client. We have never practiced or participated in 'pay to play', trading schemes or ' `soft' dollars. Enthusiasm - We enjoy and care about what we do! As a result, we do not ' merely drone on about the funds performance, reciting the numbers and parroting the economic news. We focus our knowledge and experience on what we would do if we were Trustees. Bogdahn Consulting, LLC. 3 ' "simplifying your investment decisions" ~ - __ _ __ ' Can-Do Philosophy -Our clients have never once heard 'that is not our job' from our firm. We feel it is our duty to be available as a resource for ' our clients in all facets of their plan. If we are asked a question that does not fall into our area of expertise, we will contact the actuary or attorney to relay and explain the situation, and facilitate the dialog between the proper ' professional and the client. Asa result of this willingness to become involved, many of our clients contact us for the majority of their questions. ' Open Minded -While we have certainly developed a substantial amount of expertise in our field, we are always open to suggestions. We will never let ' 'pride of authorship' prevent us from making adjustments when needed. Simplifvina your investment decisions -This is not just a tag line, this is what we do everyday. We strive not just to make recommendations, but to do so in a manner that each trustee walks away from the decision with a full understanding of why the recommendation was made. We do not ' attempt to impress utilizing industry jargon and citing formulas. We work hard to keep all discussions on a level that can be understood and absorbed ' by everyone involved. Offer the Intan4ible - In our years of making new business presentations, ' we have yet to find a competitor who can state that they have never been fired or resigned before the inevitable, and yet we can make that statement. We feel that we must be doing something right. We are proud of this ' achievement, and we diligently strive to avoid complacency. We judge our success offering these "intangibles" by the questions we are ' asked and tasks we are asked to assist with that are typically not asked of other investment consulting firms. Our "Can Do" philosophy revolves around ' our desire to be swell-utilized resource for our clients, and the feedback we have received through referrals and reference calls lets us know we are on the right track. Bogdahn Consulting, LLC. 4 ' "simplifying your investment decisions" ~ __ 1 6. Describe your investment consulting philosophy. ' ii our investment decisions." How? To sump fy y ' We have purposely focused our efforts on the Florida municipal marketplace, in order to maximize our knowledge of state statutes, restrictions and the ' actuarial assumptions common to these plans. Structuring our business to focus on one type of client allows us to understand issues and circumstances that are prevalent throughout that sector. While each plan is certainly ' unique, the underlining similarities allow us to efficiently and effectively provide outstanding service to each client and differentiate ourselves from the competition. 1 Our goal is to add more to the Board meetings than just a review of the past ' performance of the plan. We often bring additional discussion items to the floor regarding benefit improvements, actuarial adjustments and educational updates. We know that trust, integrity, confidence and respect are the ' cornerstones of any successful business relationship, and we always have and always will work hard to make sure our clients come first in our business dealings. ' We take our role as Plan fiduciaries ver serious) n w y y, a d ant our trustees to ' have full confidence that our decisions and recommendations are made with only the benefits to the plan and plan beneficiaries in mind. We do not engage in soft-dollar arrangements, do not have any affiliation with any ' Investment Management firm, and do not participate in any `pay to play' schemes. We extend to each of our clients an invitation for their auditors to review our financial records and tax returns to provide unquestionable ' verification of our independent status. We feel these characteristics allow us to provide objective, unbiased, ' investment advice for our clients -providing them with the necessary tools and information to make prudent, informed investment decisions for the pension program. Bogdahn Consulting, LLC. 5 ' "simplifying your investment decisions" Manager Searches ' 1. Describe your management search process. Include statistics on the size and scope of your manager database. Provide examples within the last two years if available. ' The first step in choosing an Investment Management firm is to conduct a detailed review and discussion with the Board as to risk and style ' preference, as well as reviewing the actuarial assumed investment return and cash flow projections. ' Next, we filter through our national database to focus on managers that meet the Board's requirements with regard to risk tolerance, policy objectives, minimum account size and the level of fees charged, to assess ' which managers may be well suited to the plan. Our due diligence process includes a rigorous review of references of similar plans based on size and geographic location as to the level of service provided, as well as verifying / ' auditing the firms past results and style integrity. We combine this information with our on-going process of personal interviews and site visits. We feel that this regular kicking of the tires' provides additional background ' information and insight that may otherwise be overlooked by only reviewing charts, graphs and databases. With the remaining firms, we then draw upon the Mobius database to measure total performance for the manager in both up and down markets, review the manager's risk adjusted returns, and compare risk statistics. Mobius is among the largest databases available and compiles data from over 5,500 composites. The screened data is updated monthly. Using an online portal (M-Port) to gather both quantitative and qualitative information from the investment managers, Mobius is able to collect the data in a timely and accurate manner. Before the data is added to the database and is made available to subscribers, the data service group analyzes each manager's data via a computerized validation system to ensure the data is accurate, complete and relevant. This validation system incorporates over 300 quality control checks and alerts a manager to a suspicious, illogical or mathematically implausible response. In addition to the breadth, depth and reliability of the data, Mobius updates the database in a timely manner. With the Rapid Returns function, updated manager return data is available within 24 hours from the time the manager submits the data to Mobius. Otherwise, Mobius provides database updates within two weeks of the month or quarter-end. Since its inception in 1989, the Mobius database has evolved to include more data points beyond just investment returns. Such data points include portfolio holdings and sector information, as well as fundamental characteristics like price-to-earnings (P/E), price-to-book (P/B) and weighted average market capitalization information. Bogdahn Consulting, LLC. 6 "simplifying your investment decisions" Once our detailed analysis and comparisons are completed using Mobius, we will narrow the list to four to six firms for each investment category, and then review the findings with the Board. Finalists will be introduced to the Board for individual presentations. We have included a sample manager search report in (Exhibit 1). Where multiple investment strategies are involved, we analyze the total portfolio to maximize manager compatibility and improve program investment results. 2. Describe in detail any circumstances under which your firm receives fees or other compensation from investment managers. Our firm does not receive any fees from investment managers. Since the ' inception of the firm we have operated as a fixed fee independent consulting firm. ' The following is an excerpt from our compliance manual: ' As a registered investment adviser, Bogdahn Consu/ting, LLC. has a fiduciary duty to each and every client of the firm. The policy of Bogdahn Consu/ting, LLC. is to protect the interests of each of the firm's clients and to p/ace the client's interests first and foremost in each and every situation. The firm's fiduciary duty a/so includes ' providing full and fair disclosure of all relevant facts and any potential or actual conflicts of interest, a duty of loyalty and good faith, providing recommendations that are suitable. It is the policy of Bogdahn Consulting, LLC. to take all actions necessary to avoid even the appearance of impropriety or potential conflict. Toward that end, Bogdahn Consu/ting, LLC. does not and will not establish any direct business re/ationships with any Investment Manager. Due to the numerous re/ationships the firm has with its clients and other entities, employees may not solicit gifts or gratuities. In addition, gifts of an extraordinary or extravagant nature to an emp/ogee are to be declined or returned in order to not compromise the reputation of the employee or the firm. Gifts of nominal value or those that are customary in the industry such as mea/s, entertainment, etc. may be appropriate. The NASD and NYSE have requirements that no emp/ogee of a member firm may give gifts in excess of $100 to any person at another Frm or securities or financial institution without the prior approval of the emp/ogee's firm. Any form of a loan by an employee to a client or by a client to an emp/ogee is not allowed as a matter of firm policy and good business practice. Bogdahn Consulting, LLC. 7 "simplifying your investment decisions" - - - _ __ 1 1 Performance Measurement ' 1. What methodology is used to compute individual manager returns? Calculations for client portfolios begin with the detailed entry of every ' transaction in the client's account into our portfolio accounting software, Advent Axys Portfolio Management. We reconcile the transaction history with the custodian, and then reconcile the combined reports (custodian and internal) to the investment manager's statement. We independently verify any price discrepancies, and notify all parties of our findings so that all reports may be adjusted. ' Once the portfolio is entered into the portfolio accounting system and the account has been reconciled, the data is uploaded, utilizing a proprietary ' program, into Mobius M-Watch, the software program we utilize to generate our core performance measurement reports. Once the data is uploaded, we again reconcile the account. t Our performance calculation methodology complies with the American Banking Institute method of calculating time-weighted rates of return as ' outlined in the Florida statutes. Advent Axys and Mobius M-Watch calculations also fully comply with the AIMR standards for rate calculations. AIMR standards are considered the highest in the investment industry. All ' performance reports are presented net of fees. 2. How are total fund and asset class numbers calculated? ' Total fund and asset class numbers are calculated using the same time- weighted methodology outlined in question one. Once the data feed is ' complete from Advent Axys to Mobius M-Watch we can calculate total portfolio returns, asset class returns and asset style returns for the portfolio. We can also provide date to date returns by security or asset class. t 3. Describe in detail the performance measurement attribution and analysis services you provide. Provide a sample of your report customization ' capabilities. Our presentation booklets provide high-quality performance reports for ' portfolios, asset class segments, and portfolio/asset class composites. We calculate accurate time-weighted and dollar weighted rates of return for different time-periods. We analyze risk on an absolute and market-relative ' basis, and analyze current and historical asset class and sub-asset class allocations. We also can review the performance effects of investment ' managers' asset class and security selection decisions, as well as returns based and holdings based style analysis. We have included sample reports in (Exhibit 2) outlining our customization capabilities for performance ' presentation reports and attribution analysis. Bogdahn Consulting, LLC. 8 ' "simplifying your investment decisions" -- 1 4. Describe your process of reviewing investment manager compliance with the plan's investment objectives and guidelines. Our analysts and consultants continually review investment managers' portfolios to make sure allocations stay consistent to target weights, performance bogeys and style integrity is maintained, and compliance with investment policies are achieved. Our review process begins with the manual input of every security transaction, for all accounts, into our Advent Axys database system. From this database of information we can run multiple reports and holdings based attribution charts indicating whether or not a manager has maintained his style purity and faithfulness to the investment process. With this detailed entry of all securities we can also monitor individual holdings within the portfolio to insure compliance with the investment policy, city ordinances and state statutes. This ongoing review allows us to identify violations proactively and take steps toward corrective action. Bogdahn Consulting has also written a proprietary computer program that links our security transactions database, Advent, to our performance software system to compare portfolio returns to a benchmark and peer universe of similar investment managers. This allows us to monitor portfolio returns relative to objectives (indexes) and quartile rankings outlined in the performance guidelines. Bogdahn Consulting, LLC. 9 "simplifying your investment decisions" i i i i i i i i i i Accounting and Reporting 1. Please provide a sample quarterly and annual report for a public sector retirement fund. Include any special reports/exhibits. List and discuss the purpose, frequency, and timing of any additional reports provided through your advisory services. Include samples of all standard and any customized. Sample performance presentation reports for public sector retirement funds are included in (Exhibit 2). Our reports are fully customizable based on the specific needs of the client. We have also included three additional reports that are provided periodically to the board of trustees. • An asset allocation review and manager review booklet. This report highlights the current allocation of the pension program and any tactical modifications that need to be implemented. We then show alternative managers and a comparative analysis to see which manager may be a good fit for the portfolio. These reports are provided whenever we review a manager or consider making a change within the portfolio to a new manager. The frequency of this report is determined by the size of the plan and how many managers are involved as well as the overall performance of each manager. • Portfolio accounting reports. Inasmuch as we individually enter each transaction, we can generate a myriad of security level data for each account. Reports produced from this system range from portfolio appraisals with gain/loss or yield, contribution and withdrawal reports, hxed income duration, maturity distribution and credit quality distributions just to name a few. These reports can be provided on a monthly basis to the trustees. • The final report included in (Exhibit 2) is a Morningstar report which outlines the characteristics of the portfolio. These reports can be generated on a monthly basis to help trustees understand how each manager is positioned and the attributes associated with that specific investing style. 2. How soon are performance reports available after the end of the quarter? Reports can be generated 21 days after quarter end. Bogdahn Consulting, LLC. "simplifying your investment decisions" 10 ' 3. Is system software or firmware proprietary or licensed? If licensed, from whom? What is the expiration date of this license? The Mobius system described above is licensed from The Mobius Group, Inc. Mobius Group provides the highest quality information technology solutions ' in the industry. The current Mobius system licensing agreement has been renewed for a three year period, expiring March, 2009. ' For detailed security analysis, we utilize the services of both Morningstar Research, with an annual renewal and Bloomberg. Our portfolio accounting ' program has been purchased and licensed from Advent, Inc. Advent Axys is the industry leader in portfolio accounting software, and is also utilized by most major investment management firms. ' In addition, Bogdahn Consulting has developed proprietary software that is utilized to track individual, as well as specific, groups of investments within a ' specific fund. As previously noted, we also customize comparative databases for our clients. Bogdahn Consulting, LLC. 11 ' "simplifying your investment decisions" Advisory Relationships ' 1. Please provide name, asset size, contact person, and phone number of three existing clients we may contact as references. From subdivisions, or ' other public sector plans. City of Winter Garden Police Officers' & Firefighters' Pension Fund Asset Size - $15,000,000.00 Contact Name -Ken Holton ' Phone - 407.656.3679 City of Altamonte Springs General Employees' & Police Officers' Pension Fund ' -City Operating Reserves and Long Term Reserves Asset Size - $80,000,000.00 Contact Name -Mark DeBord ' Phone - 407.571.8090 City of Melbourne General Employees' Pension Fund ' Asset Size - $10,000,000.00 Contact Name -Jennifer Chase ' Phone - 321.953.6283 2. Largest, smallest and median account size for all public plans. ' Largest - $100,000,000.00 Smallest - $750,000.00 ' Median - $10,000,000.00 3. Name, brief biography including tenure with firm, and description of other ' accounts handled by person who would be responsible for management of this account relationship. ' Our firm is comprised of a diverse group of individuals bringing together their unique talents working toward a common goal -simplifying our client's ' investment decisions. While we employ a team approach in the servicing of each client, each account is assigned a primary consultant. The primary consultant assigned to handle this relationship would be determined by the ' schedule of your quarterly meetings. A complete listing of our clients is attached in (Exhibit 3). We encourage you to call any client and ask about the service we provide. Bogdahn Consulting, LLC. 12 ' "simplifying your investment decisions" i i i i i i i i i Brief Biographies of our three primary municipal consultants: Dave West. CFA -Dave is the firm's chief investment officer and senior public pension consultant. His responsibilities include developing optimal investment portfolios, preparing investment manager due diligence reviews, selecting investment managers, reviewing and developing investment policy guidelines, and preparing performance-monitoring reports. Dave joined Bogdahn Consulting in January of 2006. Prior to joining Bogdahn Consulting, Mr. West was a senior consultant for 4 years at a regional investment consulting firm where he was responsible for conducting asset allocation studies, strategic market recommendations and rebalancing strategies and custom benchmark development. Prior to his consulting career Mr. West worked for a leading institutional money management firm as senior portfolio manager and co-chairman of the asset allocation committee. Along with fixed income responsibilities Mr. West was also the co-manager of the firm's lifestyle mutual funds which posted top quintile performance. Dave has a Bachelors of Business Administration from Stetson University. He is also a Chartered Financial Analyst and Member of the Orlando Financial Analysts Society Dave lives in Orlando with his wife Chris and son Zach. Mike Welker. CFA -Partner and Senior Consultant of Bogdahn Consulting. Mr. Welker has been with the firm for 4 years. Mr. Welker received his B.A. in Economics from Rollins College, where he also played basketball for four years. Upon graduation Mr. Welker attended the Crummer Graduate School of Business where he received his MBA in Finance and Management. Mr. Welker also earned the Chartered Financial Analyst designation in 2004. Over the past 10 years Mr. Welker has worked on both the investment management side of the business as well as the consulting side of the investment business. Prior to joining Bogdahn Consulting, Mr. Welker worked for a leading institutional money management firm where he was responsible for asset allocation decisions and client servicing for institutional accounts. Mr. Welker also gained Wall Street experience working for a trading firm on the floor of the New York Stock Exchange. Mike currently lives in Orlando, Florida with his wife Kristen and daughter Kindell. He is ' active in the community and serves on the board of directors for the downtown Orlando YMCA and the Rollins College Alumni Athletic Board. Mr. Welker is also a member of the CFA Institute of Orlando. ' ]oseph Bo4dahn, LIMA - Principal of Bogdahn Consulting, received his BBA in Economics from the University of Mississippi, where he served as President of the Student Body. Mr. Bogdahn also received his Certified Investment Management Analyst designation ' from the IMCA program at the Wharton School of Business. Mr. Bogdahn has recently written a white paper outlining the problems pervasive in today's investment consulting industry. The white paper has garnered national attention, and has been quoted in the New ' York Times, Miami Herald, Fund Fire Magazine and Forbes, and was profiled this month in the Money Management Letter. ' Joe lives in Winter Haven, Florida with his wife Heather, daughter Isabella, sons Garrison and Miles and boxer Duchess. Mr. Bogdahn is very active in the local community and serves as an Elder of First Presbyterian Church, is a past president and current member of Rotary, and has served on the Board of the Boys & Girls Club for twelve years, including an ' extended term as Board President. He also is the Vice President and Partner of the 6/10 Corporation, a real estate development partnership. Mr. Bogdahn recently accepted the 2005 Industry Award for Bogdahn Consulting from the Winter Haven Area Chamber of ' Commerce. Bogdahn Consulting, LLC. 13 ' "simplifying your investment decisions" ' Pricing ' 1. Clearly and precisely provide a complete fee quotation inclusive of any time, extraordinary, or special charges based upon specifications contained in the RFP. ' 18 000 -All inclusive $ , t 2. Additionally, provide a fee quotation for providing performance monitoring and reporting only, and list separately the cost of performing an asset ' manager search, custodian search, asset allocation study, investment policy review with revisions and commission recapture search. ' All costs associated with our services are outlined in question one. We do not charge extra for the additional services listed in this question. 3. Itemize and describe any other services (including fees) you provide that you feel may be of benefit to the City. ' All services we provide are included in our inclusive fee. These services include: ' • Educational Seminars for Trustee Continuing Education • Security Price Verification ' • Special Meetings • Risk Analysis ' • Quarterly Performance Report • Quarterly Presentations • Investment Policy Statement Development, Review and Maintenance ' • Asset Allocation Consulting /Studies • Investment Style Analysis and Compliance Monitoring ' • Additional Investment Portfolio Evaluations • Manager Searches • Custodial Searches ' • Pension Attorney Searches • Actuarial Search /Review ' • Compliance Monitoring IMPORTANT NOTE: Should the Board be displeased for any reason ' with our service during the first year of our engagement, Bogdahn Consulting will refund in full all fees collected. Bogdahn Consulting, LLC. 14 ' 'simplifying your investment decisions" Exhibit 1 Manager Search ~ Presentation Booklet t NOTE: THIS REPORT CAN BE MODIFIED TO MEET THE BOARD'S NEEDS FOR MORE ' OR LESS DETAIL 1 C BOGDAHN CONSULTING, LLC. Presented 14IarG~ 1, 2006 Investment Consulting and Performance Evaluation Services B®GDAIIN CONSULTING, LLC. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ i International Equity Manager Review: Manager Fee Proposals/Product Delivery Individual Manager Data Comparative Manager Data Reference Data Pages: 1 Pages: 2-10 Pages: 11-17 Pages: 18-21 ~ Bogdahn Consulting, LLC. International Equity Manager Fee Proposals/Product Delivery DePrince Race Zollo Freedom Capital Mgt. State Street Global Wentworth Hauser & Violich 2 BOg(~$hII ~i0IIS1i1t1IIg, Tat.C. °-, ~... ;: ~ ~" ~r DePrince, Race and Znllo Inc. Style Analysis Trend Area Chart and Style Drift Roduct Name: htemational Equity [Goss S¢e] Model: MSp htemafional 6quAy Asset pass: htemational Equity 7 Years Traihp endnp 12ldt/2005 Style Model: MSCI Internatanal Equity Analysis Period:01/01/1999- 1?l31f2005 100 90% 80% 70 ~ 60 r 50% 40% 0 ~ 30% LL 20% ~()% DO1 WD2 ~2 2 1 D02 .1D3 D03 J04 S02 ND3 S03 MJ4 12 QuaAers Ending ' MSq EM (EMERGNG MARKETS) GROWTH ~ MSp WORLD ex l IS GROWTH ' MSq EM (EM32GNG MARKETS) VALl1F ' MSp WORLD ex US VALUE Style Model: MSCI Internatanal Equity Analysis Period: 01/O1H999 -12f31f2005 D04 J05 D05 S04 WD5 S05 _ 1-{ _y ~_ _y -r----------~-~----------r-. _..__--_ ..-----------T----- -----. .. __------~ -1 0 1 2 3 Bogdahn Consulting, LLC. ~. ~ -,.. Manager Contribution MSa SAFE 7 Yeah; Taring Quar4erly DeRiice Race Zolo Manager Contribution Index: MSCI SAFE 4 Bogdahn Consulting, LLC. J99 DB9 .100 D00 J01 DOt ,p2 D02 J03 D03 ,p4 D04 J05 D05 M99 S99 MDO S00 MD1 S01 WD2 S02 MD3 S03 MlA4 SlM MD5 S05 Quarter ErMrg T.~- Freedom Capital Management, LLC Style Analysis Trend Area Chart and Style Drift Roduct Nana: Freedom Mernalional Fund [Gross Sae] Model: MSC1 htemational Equfy Asset Class: htemational Equky 7 Years Traih0 endiq 12!31/2005 Style Model: MSCI International Equky Analysis Period: 01/01/1999 - 12/31/2005 100% 80% ao ~ 60 40 0 U N LL 20% ~% 001 JO2 DOQ J03 003 J04 IuD2 S02 IuD3 S03 M04 12 puarters EndinO ' MSCI Bd (Bulff2GNG MAPo(E7S) GROWfH ~ MSCt WORLD ex US GROWfH ' MSq BSA (9~6iCiNG MAPo(ETS) VALIE ' MSq WORLD ex l1S VALID Style Model: MSCI International Equky Analysis Period: 01/01H999 -12/31/2005 _~ { _2 ~ _2 1 0 5 D04 JD5 DOS S04 MD5 SOS 1 BOgdSIlII ~i0II8171t1IIg', T al.~i. Manager Contribution MSq SAFE 7 Years Traing Quartary Freedom Cap ~ Manager Contribution Index: MSCI SAFE 20 15 to 5 0 -5 -10 s BOg'(i811Y1 ~i0II81i1~1IIg, TaT.C. J99 DB9 J00 D00 J01 D01 .p2 D02 .103 D03 ,104 D04 ,105 DOS M99 S99 MDO S00 MJ1 S01 ND2 S02 M03 S03 M04 S04 MJ5 S05 Quarter Ending ~ - ~ 4 -;.~. ~_ State Street Global Advisors Style Analysis Trend Area Chart and Style Drift Rodud Narre: htemetional Alpha [Cxoss Size] Asset pass: htemational Equily ~~: MSq hternational ~~ 7 Years Traihp ending 12!31/2005 Style Model: MSCI International Equty Analysis Period: 01/01/1999 -12!31/2005 100 80 ~ 60% r 40 0 U N LL 20% ~% l7ui .AZ DDZ .)03 IX13 J04 D04 .105 MJ2 S02 ND3 S03 M04 S04 MD5 12 Quarters Ending ' MSq EM (EMl32GNG MAPoCEfS) GR0INTH ~ MSq WOi7LD ex l15 IaROWiH ' MSq EM (EMERGNG M4Po~75) VALIE ' MSq VyOFiD ex l15 VALIE Style Model: MSCI International Equity Analysis Period:01/01N999 -12/31!2005 2 _ _ - _ _ _ -- - -- ----------- - --- _ _- -- - ---- ---- -- -- ----- MSgEMV MSCB~AC' 1 -- -- - - - - -- --- --- - - -- - -- ----- - - - - ------- - --- --- ---- 0 I -1 --- --- - - - - -- -~ - - -- ------- - - ----- - - btSgVNiLDxUSV MSgWRLl~ct1SG SOS D05 -2 ~------ ----~-- ----- + ~ -2 -1 0 1 2 7 BOgdS~lII CiOIISIil~]IIg, ~~i. Manager Contribution wsa SAFE 7 Years Traig QN State St Gbl Adv Manager Contribution Index: MSCI SAFE 8 BOg'f18IlII Consulting, LLC. .nr~ uerv ,NV WU .lot oot JD2 D02 J03 D03 JlM D04 JOS 005 M99 S99 M~0 S00 A/D1 S01 M02 S02 M~3 S03 ND4 S04 M(75 S05 Quarter EWing ~ ~ ... Wentworth, Hauser 8 Violich Style Analysis Trend Area Chart and Style Drift Roduct 143me: WHV htemalional Equil (Gross S¢e] Asset pass: htemational Equity Model. MSq hternatxuiai EWdy 7 Years Tracing endiip 12Id12005 Style Model: MSC( International fiquity Analysts Period:01/01N999- 12/312005 100% - ___ _ __ _ - 80% a G 60% r 40% `o U tC LL 20% ()% ' 001 ,b2 002 ,p3 003 ,104 M02 S02 M03 S03 M04 12 Quarters Endiig f MSq EM (EMf32C~JG MARKE75) GROWTH ~ MSq WORLD ex US GROWTH ' MSq EM (EM97Gt~G MARKETS) VALLE t MSq WORLD ex tS VALLE Styb Model: MSC( International Equity Analysis Period:01/01l1999 -121312005 _2 L _2 DD4 J05 D05 S04 MD5 S05 -1 0 1 2 9 BOg(~8}lII COII8111t1IIg, TaI.C. Manager Contribution MSp SAFE 7 Years Traing Quartery Wentworth Hauser Manager Contribution Indez: MSCI EAFE 7 0 Bogdshn Consulting, LLC. J:ly l~ J00 000 Jg1 D01 J02 D02 J03 D03 J04 D04 ,p5 DDS M99 S99 M~0 S00 MD1 S01 ND2 S02 M~3 S03 MD4 S04 MD5 S05 puarter Ending ~. Performance: Index Relative Risk Statistics BencMerk NtS(2 SAFE 7 Years Traing end'rtq 12x312005 7Yr t.o o.s 0.8 0.7 0.8 0.5 0.4 0.3 0.2 0.1 0.0 Beta 7Yr 20 1e 1e 14 1z m e s 2 0 Traynor Rath eo 70 w 40 30 zo 70 Betting Average 7Yr 7Yr R-Squared 7Yr Alpha Beta F~Squared Treyrar Betio Batfng Average Momation FZ9tio ^ DePtirlce Race Zob - Frterrlational 6quily -Gross Sae 5.50 0.86 87.16 8.16 64.29 0.70 ^ Freedom l`Ap ~rt -Freedom trterrlatiorlal Fund -Gross Sae 11.93 0.91 87.83 14.38 87.86 0.90 ^ Sfate St Gbl Adv - IMernatiorlaf Alpha -Gross Sae 2.81 0.95 98.73 4.72 82.14 1.16 ^ VVleniworth Hauser - VN~1/ Flterlatiorlal Equity - Gross Sae 15.54 0.85 56.08 19.28 64.29 0.95 • AASa SAFE 0.00 1.00 100.00 1.66 100.00 I rilafremB: / 7eam3 Irerllg 11dex: MSq SAFE 11 Bogdahn Consulting, LLC. Alpha 7Yr Information Ftetio fib <~. Performance: Index Relative Rolling Risk Statistics MSq FJiFE 7 Years Trairp Alpha Index: MSCI 64FE Analysis Period:01/01M999 -12/31/2005 35 --- -- ---- -- - 30 25- 20 15 10 5 0 - --- -- _ -- - - - -------- - -- - _ ----- -5 --r----r----r--T--T------~---~- ---~r-T---r-~-T---T- ~ M~2 S02 MJ3 SIYd MD4 S04 MD5 SOS 001 JD2 D02 .p3 003 J04 004 .105 005 12 Quarters Endng Information Ratio Index: MSCI FAFE Analysis Period:01/01N899 -12131/2005 2.0 - - -- -- -- 1.5 1.0 0.5 0.0 -- -0.5 --T --~--T~-~-T- ---T MD2 S02 MD3 S03 M~4 S04 MD5 S05 001 JD2 D02 J03 003 JD4 D04 JD5 D05 12 Quarters !rdng ^ DePrince, Race and Zdlo Inc. - International Equity ^ State Street Global AdWSOrs - IMemational Alpha ^ Freedom Capital Management, LLC -Freedom International Fund ^ Wentworth, Hauser & ~olich - WHV International Equity 7 2 Bogdshn Consulting, LLC. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ i ~ - ~ .. Performance: Market Capture Ratios Benctarertc MSCI EAFE 7 Years Treing ending 12/31/2005 Up•Market Ratio 7rr Down-Market Ratio Up-Market vs Qown-Market so J i0 W w- !o- io 0 7Vr i= r o: d W f h 7 Up-Market Ratio Down-Market Ratio ^ DeFYirce, Race and Zob hc. - hterrrational Equdy -Gross Sae 109.81 69.81 ^ Freedom Capital fl~naperrent, LLC - Freedom htemaGonal Fund -Gross Sae 181.38 58,00 ^ State Street Gbbal Advisors - hternatianal Apha -Gross S¢e 103.48 82.01 ^ V~krMw onh, Ftauser 8 Vktich - WFN YMemational EAuily -Gross Sae 12126 8.07 • MSCI64FE 100.00 100.00 Yuen, rvuu a+rc Trrefrarre: 7 Years Tra7ng ~ 3 Bogdahn Consulting, LLC. o zo ro eo eo too tzo uo iso Aso zoo Dow n-Market Ratb ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ i ,~ Performance: Risk Analysis Benchnerk: NSCI FAFE 7 Years Traing eMi~g 12/318005 Returns Standard Deviation Sharpe Ratio 7Yr 7Yr Worst Quarte r 7Vr 7Yr Returns Standard Deviation Sharpe Ratio Negative Quarters Wont Quarter Worst4 Quarters ^ DeRnce Race Zob - hterriational Equiy -Gross S¢e 1029 17.34 0.40 9 -21.01 -22 45 ^ Freedom Cap Nbni - Freedom Memational Fund -Gross Sae 18.50 20.69 0.63 11 -18.20 . -18 30 ^ State St Gbl Adv - h~rr~ational Alpha -Gross Sae 7.76 18.00 025 9 -18.85 . -21 55 ^ WentwaAh Hauser - WHV Ydemational Equily -Gross Sae 19.83 21.59 0.76 7 -18.41 . -27 55 ~ MSq SAFE r..w.n...s. ~..,......, r~:__ 4.86 18.81 0.09 13 -19.68 . -2827 14 Bogdahn Consulting, LLC. 7Yr Negative Quarters Worst 4 Quarters ~ - . ~<, Risk vs. Retum Benchmark: MSCI EAFE 3 Years Trailing ending 12!31!2005 N E 25 ZO 15 10 w ~ 5 m K 0 -5 -10 -15 18 5 Years Trailing ending 12/31f200tf h fr 7 m O: 8 10 12 14 16 18 20 22 24 Standard Deviation ^ State Street Global Advisors - Intematitxral Alpha ^ Wentworth, Hauser & Volich - WHV International Equity 15 Bogdahn Consulting, LLC. 13 14 15 16 17 18 19 20 Standard Deviation 7 Years Trailing ending 12/31/2005 19 ZO 21 22 23 Standard Deviaktiwr Bear Market ending 03/31/2003 16 17 18 19 20 21 22 Standard Deviation • MSCI EAFE ^ DePrirlce, Race and Zollo Inc. - IMematitxial Equity ^ Freedom Capital Management, LLC -Freedom Intenlational Fund t~: ~ ~ ~~ - Asset pass: htematbnat Equity Universe Comparison Calendar Years Managefs Benchnerk MSq FAFE Universe: Mubius World Equty: hternational Devebped Benchmark: MSCt 64FE Data cak:ulated ushg fluarterly retunrs Returns Universe: Mobius World Equfty:lnternational Devebped 120 IU 2005 2003 2004 2002 ^ 5-25 %tile ^ 25-50 %tile • MSCI FAFE ^ OePrince, Race and Zdb hc. - hternational Equity -Grans Size ^ Freedom Capital ManaOement, LLC - Freedom hternational Fund -Gross S¢e 2001 2000 1999 1998 1997 p 50-75 %tie ^ 75-95 %tle ^ State SVeet Gbbal Advisors - Memational Alpha -Gross S¢e ^ Wentworth, I-buser 8 Vioich - WHV International Equity -Gross Sae 1996 DeRince, Race and Zob hc. 2005 11.71 2004 21.49 2003 41.69 2002 -12.22 2001 -13.54 2000 1.48 1999 34.03 1998 10.98 1997 1998 Freedom Capital ManaOement, LLC 18.68 29.82 54.86 5.92 0.77 -4.74 22.12 State Street C;fobalAdvisors 15.25 23.66 42.20 -12.15 -16.84 -11.35 28.34 18 02 V11enlworth, Hauser & Vioich MSCI SAFE 40.96 14.02 30.20 20.70 29.26 39.17 -8.45 -15.66 -17.08 -21.20 29.55 -13.96 52.00 27.30 . 13.86 20.33 16.82 2.06 19.22 6.36 7 s Bogdahn Consulting, LLC. 's. Pertonnance: Retums vs Universe lJraverse: Mobius World Fsiuily: htemational Devebped Benchmark MSCI SAFE 10 Years Traiing endiig 12/31/2005 Returns Universe: Mobius World Equity: International Developed 45 40 35 30 25 ^ ~ 20 ^ 15 ^ 10 5 0 ^ 5.25 %tile • MSCI SAFE 3Yr ^ 25-50 %tie arr p 50-75 %tie 10Yr ^ 75-95 %file Returnset Percentile: Percentile: Paruntile: Percentile: Returns for 1 Returns for 3 Returns for 5 ReWrns for 10 Years Trailing Years Trailing Years Trailing Years Trailing ^ DeRince Race Zob - htemationai EquAy -Goss Size 79 0 58 0 39 0 ^ Freedom Cap Mgnt - Freedom htamational Fund -Goss S¢e . 43 0 . 18 0 . WA ^ State St Gd Adv - htertiatlonal Atha -Goss Site . 54 0 . 39 0 4.0 38 0 WA ®WentwoAh Hauser- WHV Ittematior181 Equity -Goss S¢e . . . WA ~ hi~orcn• u,ti:.. ua.w r....a..• ~.~e.....w__~ r...._~__. 3.0 17.0 18.0 3.0 17 Bogdahn Consulting, LLC. I 1 1 1 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 ,:,ate _~ N ~ ~ ~~a ~ O r l0 10 < t0 OI N O 1'~ 10D ~ p~~ p l0 N N N OG 10 !+1 C OD fC ~ ~ C 7 ~ mm GO O W N '~Q ~ ~ r l'7 O ~ M^ N N tD ~ h t0 ~ ~ ~ OD N ~~ 0 {p N 1f07, ~ N ~ ~ 1~ M r ~~pp f0 a l'7 N N O! lD i~ h i9 G 1~ Q C m ON I N t D O I r p N ~ Y~ N ~ E~ ~ N , p ~ iO o o N pp V ~ p p f~7 p~~ p N ~ N ~ ~ ~ N [~ AA N m (9 ~ ~~pp m cN~ N ~ ~ ~ O w m N cV ~ h 0~ ~ M Y 0 N 0 ff~7 ` p `~Q' `O ugi, ~ aNO $ in h ~ i: ~ n ry ~ CD N ~O ' ~ ~ N N N N p ~ S ~ N w ~ V N ~7 h {p ~ / h ~p /h N 7 tn0 N N pp Y f f h O r N { O ~ N ; ~ m Of ] O ~ ~ {7 10 l0 N 7 N ~ Y iy N O r aD fO ftDD Ep Of b t+7 p f0 ~ ~ Y p p O p~ p f+1 M ~m p M y f0 ~ N ~ N 7 NNN n i ~ e ~ ~c o ~ '~, tO `~ g ~ p f7 N N N N N ~ m , t0 N y+ ~ NOQ mm ~ l'01 G O f7 Y (O ~ W fD 1nf7 ~ yy ~~ t0 , N ~.y ~ j N OD tC Y'i N M 1V C OG a i s S P a c a a ~ v ~ ~ N f 7 Y ~ ~ ~ GD >_ 6 U 1~IF7 VaWil 0 U 0 Performance: Returns vs Universe Universe: bbbius World Equity: htemafional Devebped i3enchnerk MSq EAFE 10 Years Tsang ending 12/312005 Universe Peruntile Returns for 1 Years Trailing Returns for 3 Years Trailing Returns for 5 Years Trailing Returns for 10 Years Trailing 5th 35.55 10.17 19.52 15.50 25th 22.81 29.36 10.57 12.23 Median 15.86 25.22 6.72 9.96 75th 12.60 22.72 4.80 7.58 95th 8.12 18.55 2.57 4.18 ueverse: niooeu vvona rsausy: nremauona~ ueveapea 19 Bogdahn Consulting, LLC. ~. ~ ' ~ ~ _. Reference Manager Summary Statistics MSp EAFE 7 Years Traing 20 Bogdahn Consulting, LLC. I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Exhibit 2 A) Performance Measurement Sample Reports (3 Examples) B) Asset A/location Review & Manager Review Report C) Advent Reports D) Morningstar Attribution Reports NOTE: THESE REPORTS CAN BE MODIFIED TO MEET THE BOARD'S NEEDS FOR MORE OR LESS DETAIL BOGDAHN CONSULTING, LLC. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Performance Measurement Samp/e Report #1 BOGDAHN CONSULTING, LLC. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Performance Evaluation for Lakeland Firefighters' Supplemental Pension Plan Westwood Mgmt. Corp. For the Period Ending December 31, 2005 Presented by: Bogdahn Consulting, LLC ~ _ _ 1 Lakeland Firefighters' Supplemental Pension Plan Executive Summary Report Explanation t The Executive Summary provides an overview of the fund's performance. It shows the performance in dollars, percent, ' and relative to the investment policy. These are provided over different time periods including up and down markets. All rates of return are annualized if the period for which they are calculated exceeds one year. ' Account Reconciliation: This section shows the performance of the account in dollars, during the most recent quarter, the calendar year, and since the inception date. The Beginning Value is the value at the start of each period. The Ending Value shows the value as of the date of the report. Net contributions are the total contributions less the total withdrawals ' during the period. The Investment G/L is the gain or loss resulting from the investments. It is the difference between the beginning and ending values that cannot be explained by the net contributions. Positive investment G/L figures represent ' a profit, and negative values represent a loss. Investment Policy: This section defines the benchmark against which the fund is being compared. Generally, this is the most important objective for a fund to achieve. The performance of the fund relative to this measure over longer periods of ' time, such as market cycles, is the strongest indicator of the success or failure of the investment strategy. This objective should be reasonable, and the performance of the fund should be measured against the investment policy after adjusting for risk. ' Trailing Returns: This section shows the cumulative time weighted returns over the last 1 year, 2 years, and so on up through 10 years if available, as well as since the inception date. A positive difference indicates the fund has exceeded ' the policy's returns. The investor would prefer that this difference be positive for all time periods; however, it is more important for it to be positive for the longer periods rather than the shorter periods. ' Calendar Year Returns: This section gauges the consistency of performance over one year time periods. Each calendar year of performance represents the return from January 1st through December 31st. Watch out for a trend of declining relative performance in recent periods. ' Returns In Up/Down Markets: This section shows how the fund performed in both up and down markets. The methodology is to segregate the performance for each time period into the quarters in which the market, as defined by the ' policy, was positive and negative. Quarters with negative policy returns are treated as down markets, and quarters with positive policy returns are treated as up markets. Thus, in a 3 year or 12 quarter period, there might be 4 down quarters and 8 up quarters. Up market returns are calculated for the fund and the policy based on the up quarters. Down market ' returns are calculated for the fund and the policy based on the down quarters. The ratio of the fund's return in up markets to the policy's is the up market capture ratio. The ratio of the fund's return in down markets to the policy's is the down market capture ratio. Ideally, the fund would have a greater up market capture ratio than down market capture ratio. City of Lakeland Firefighters' Retirement System Asset Allocation through December 31, 2005 xed Income 29% Eq~ 6~ At Cost =fixed Income 35% Equit 63% 3 At Market Cash &Equiv 2% Cash &Equiv 2% 1 Lakeland Firefighters' Supplemental Pension Plan t 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. ' Trading Returns: This section focuses on longer term returns. It shows the cumulative time weighted returns and percentile rankings for the last 1 year, 2 years, 3 years, and so on up through 10 years if available. The returns for the ' fund, the policy and the universe percentiles are displayed. A percentile ranking of 1 is the best, and 100 is the worst. For example, a ranking of 50 means that the fund outperformed half of the universe. A ranking of 25 means the fund was in the top 25% of the universe, outperforming 75%. Above 50 is acceptable. Above 25 is excellent. High rankings over all ' time periods are ideal; however, it is more important to rank highly over the longer periods rather than the shorter periods. Calendar Year Returns: This section focuses on shorter periods and gauges the consistency of performance over time. ' It shows the calendar year returns for the fund, the investment policy and the universe percentiles. Each full year of performance represents the return from January 1st through December 31st. Ideally the fund has performed well in the earlier years and in the most recent years. Watch out for a trend toward underperformance in recent periods. Note the ' performance in different market environments. A high policy return indicates a bull market, and a low policy return indicates a bear market. All rates of return are annualized if the period for which theyare calculated exceeds one year. 1 i G u Lakeland Firefighters' Supplemental Pension Plan Universe Comparisons 50% BLCC, 10% IE, 35% HQB, 5% CASH I ralnng Ketums through December 31, 2005 Return 6.90 5.52 7.52 12.09 6.12 3.87 2.77 4.08 5.76 7.41 -tile 44 52 39 39 31 37 44 55 36 26 ~~; n~ :~: ~ . ~r ~ ~~ : ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~::~::~:::~:~::::::;:::::::;:;:::::;::::::;:::::::;:::::::::::::::::::::::::::::;:;:::::::;::::~::::~:::~:~::;::: ..iv ..fie....... . 5th %-tile 10.12 9.12 9.82 14.57 8.11 6.43 6.08 7.92 7.57 8.71 25th %-tile 7.75 6.82 8.16 12.69 6.33 4.33 3.67 5.31 6.20 7.45 50th %-tile 6.66 5.57 7.05 11.52 5.31 3.29 2.56 4.21 5.39 6.64 75th %-tile 5.86 4.56 6.27 10.71 4.41 2.23 1.28 3.29 4.59 5.78 95th %-tile 4.55 2.99 4.89 9.28 3.23 0.77 -0.35 2.05 3.44 3.87 Calendar Year Returns Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 #r_tittd::;:::~ :::::::::::::::::::::::::::::::::::::::::::::::::: ~ :::::::::~::::::::::~:~:::::::::::::::::::::::::::::;:::::::::~:~::::~::::::~::::::::::::::::::::::: Return 1.47 7.91 14.02 17.01 -7.99 -4.24 8.38 8.55 12.70 22.86 -tile 80 12 2 97 16 49 6 86 63 8 .PW .... Return 1.70 5.52 9.56 21.82 -9.94 -4.68 -2.56 12.31 18.28 21.56 -tile 61 52 31 34 47 56 60 67 26 11 :~Cilli~5e . 5th %-tile 2.98 9.12 11.92 25.74 -6.66 2.45 8.58 38.80 22.17 23.68 25th %-tile 2.21 6.82 9.84 22.78 -8.83 -1.63 2.24 19.64 18.31 20.31 50th %-tile 1.82 5.57 8.59 21.05 -10.12 -4.28 -1.53 14.87 15.42 18.39 75th %-tile 1.53 4.56 7.59 19.67 -11.32 -6.25 -4.18 10.61 10.11 15.17 95th %-tile 0.84 2.99 5.77 17.48 -13.72 -9.49 -7.89 5.32 3.74 6.58 Rewms are m percent. "°k-fife" is the percentlle ranking within the universe. Retums for periods exceeding one year are annuailzed. Incept is March 31, 1996 to December 31, 2005 (Incept to 6/30/97 50-40-10}(7/1/97-12/31/97 50-40-10}(1/1/98-9/30/98 55-40-5 }-(10/1/98-12/31/98 50-40-10}(1/1/99- 6/30/00 50-10-35-5}(7/1/00-9-30-03 i i i Lakeland Firefighters' Fixed Income Executive Summary Account Reconciliation 12/31/2005 2005 03/31/1996 Qtr YTD Incept 'a~giiini~~ Value ...:...: ::::::i4.:...~., : ......... ,~3:.... :::.:a.:~ ...::::.:: . ;.,.•...~T ... : .:::::..:......: .. 3,3~~0.. .......................... ................ .............. ............ .......................... .......................... :~fi3v ~stitti:f3/G::::~ ::: ... e .................... ................ ................ ::::::::::::: ................ .............. .............. ::~:~:1~1~:~:~::~ ::: .............. ............. ............ ::::~:~2'S`56~: ......i..... ~Er~dEng ~alt~g ::::::::: ::::::::~4;2~8:::::: ::::::~2~8:::::: :::::::::4j2~~:: Investment Trailing Retums through December 31, 2005 03/31/1996 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept ....................... :Fljiid:::::::::::~:21:::: ........... :::: 2;:7.6::: ............ ..:.. ~::: :~:::2.~ .... ........... ::::5:0~ :: ........... ........... ::::b:~'t ::: ........... ............ :::£::8~::: ............ ........... :~::~5:i6~7:~~ : ........... ........... :::~i6~:22~::~: ........... ........... :::6:59~:: ........... .......................... ::::::~:::::::::~::::::G:~B~: ............... . #~t~fi ~3r# 3 27 ~ 74:: :::5:51 : ::::69i~ ~ ~~::~: i~ ::~: ~ 7::~: lei ::: ":14:::: : 6 :::6:5 :: ::::::~: :~ ~~~:: .6.59. I~li~: -~;~:3 0.;~~:: ~a;:s3:::: ::::::~:~a.:: :::~0:3~::: :~:~:r~ : :::~:c~o:::: ::::c~:c~s :::: :: o:o~ ::: .. . :::::::::::: :o:or:: ' Calendar Year Retums 12/31 /2005 2005 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 ................................ ................................ ~md 0.55.:: ........... ........... :::~:21~:::~: ........... ............ :~:~:~3::3#:~:~: ........... .......... :::.3.2.... ........... ............ ....1,8~ .. ............ ........... ....8..32... ........... ........... ..12 ~8... ........... ........... ..... 29... ........... ........... ... {~,1 ~ .. .................. ................... .. 9 aT ........ . Poli.:.. ..::...:::: ......cy ............. D,59.:. ::::::7:3!~~:: ... , ....... :::4:2'1 :: ........... ~::~:~:~6$::: ........... ::~1~1:: ~ ~:: ......D.... :~ ~~: ~ 1:~:~: . $.!i .... :~:~'1:7:; ...:: .....8+4.:. :::~~...::: .......5.. : :::..:....:: . ~,+~7 .. ::~: ~ ~~~ ~ ~ :~:::~: ::::~: .. 9.7~~ ......... . 4itf':::: ~::a0:it4:~:: ::~:1~3::~ ::::~b:~:0~:.. ...~.4.7... ...0:80.~:: :::-p~:it~~:~: :~:~:~:1~:0>~~:: ::::O:g9~:: ::~:~:b~6~:: :~:-0;1~::~::::::~:~:: f[ClUlll, III VE! IVIQIICCI:~ 03/31/1996 3 Yr 5 Yr 9 Yr Incept ........ r. ~ gks... ~~,~.. ........~t~,~,. P :i ~ ~ ;.. ~I cy ............. 9.a.. :: :;~.:: ....#1~,........ ::.:... ....~p,~:: :::::::::::::1D;4:: R.. '.. :. ~ :::: : .. ~tiv ...........78.2 ... ::: ~ ::;~ ::;:: ....90..3... : ~:~:::~ :: ; ....9T•.3.. ::::~ ~~~::::: .........9~.9 . Inception date is March 31, 1996 ' All dollar values are shown in thousands. Retums for periods exceeding one year are annualized. Returns are net of fees. Retums in Down Markets 03/31 /1996 3 Yr 5 Yr 9 Yr Incept . :Poficy:::: ::::::::~#;~::::. ;.:.:. ~.~ .:.:.:.:. ......3.8..... :. ~.~.;.Y .' .. ....3.~T~: .. . .:::~::.:~:~:<3,T~: .ai?.a ...................81.~......,. ,.....7.8,~.,....,. . ,. T$.~.,., .,...,.......~~8,~., 6 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Lakeland Firefighters' Fixed Income Universe Comparisons High Quality Bond t ranmy r~c~[ums tnrvuyn uCC~sr i ~utsr ~ ~ , cw~ 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr Return 2.67 2.21 2.76 2.91 5.07 5.71 6.87 5.67 6.22 6.59 -tile 35 36 53 62 32 28 18 21 10 10 >poli~`~` :`. ~Y Return 3.04 2.34 3.27 3.74 5.51 6.10 7.04 5.67 6.14 6.54 -tile 15 29 32 35 18 18 13 21 12 11 . I~/t3r~~ :::::::: :: :::::::::~::::::::::::::::::: :~::::~:::::::: :::::: ::~:::~:::~:~::~:::::::::~::::::::::::~:::~:::::::::~:::::::::::: :::: :: 5th %-tile 3.52 3.37 4.49 6.61 6.68 7.10 7.64 6.36 6.51 6.88 25th %-tile 2.83 2.41 3.42 4.18 5.24 5.78 6.63 5.50 5.77 6.15 50th %-tile 2.46 2.00 2.84 3.30 4.56 5.17 5.96 4.95 5.23 5.57 75th %-tile 2.09 1.57 2.01 2.39 3.44 4.16 4.79 4.39 4.63 4.88 95th %-tile 1.67 1.09 1.38 1.57 2.10 2.92 3.57 3.57 3.81 4.11 Calendar Year Returns Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997. ........................................................................................................................................... ............................................................................................................................................ Return 0.55 2.21 3.31 3.21 11.82 8.32 12.88 -1.26 10.12 9.57 -tile 45 36 58 71 1 28 1 71 1 24 ............................................................................................................................................ Return 0.59 2.34 4.21 4.68 11.02 8.51 11.84 -2.15 9.47 9.75 -tile 36 29 34 35 4 21 10 84 5 20 ........................................................................................................................................... ............................................................................................................................................ ~Un ..arse :~::::::~ :::::~ :: ~ ::::~::::~::::~::~::~:~:::::::::~:::::::::~:::::::~~~ ~ ::~: ~ ~~:~= :: ~ :~~~ : ~~: ~~: ~: ~ :~~ :~ ~:~::::::::::~ ::~::::::::::::~::~: 5th %-tile 0.90 3.37 6.19 11.51 10.87 9.85 12.37 4.61 9.45 11.75 25th %-tile 0.66 2.41 4.54 5.34 9.37 8.40 10.90 1.75 8.34 9.52 50th %-tile 0.52 2.00 3.69 4.04 7.98 7.81 9.56 -0.45 7.26 8.59 75th %-tile 0.39 1.57 2.13 2.90 5.51 7.00 7.70 -1.46 6.33 7.06 95th %-tile 0.15 1.09 0.98 1.63 1.50 4.93 5.78 -3.67 4.50 5.91 Retums are in percent. "%-tile" Is the percentile ranking within the universe. Retums for periods exceeding one year are annualized. Incept Is March 31,1996 to December 31, 2005 7 r Lakeland Firefighters' Total Equity Executive Summary Account Reconciliation 12/31 /2005 2005 03/31 /1996 Qtr YTD Incept valuia::: :::::::::gB:~T~:: ::::93~:~:~ :~:: ~:::3:3~9: :i?+let:Flow,s::::::::::: : :::::-5~:: : -3Q~~~: :::::::::~4~5: ~ii#~ieetrrl~iit:!E3i.L::::; : ~ :::::~:'I8.f`~ >:::: ::::::::$~i~ :::: :::::::::::~:6;:~~7~ :1`iiditigV~alu~ :::::::: :::::::: 90037:: ;; ::1{~;fl3~:;: ; ;:;;; ;:;:~#4;r~3~:: Investment Po Index Weight Trailing Returns through Decemper ~~, 1uu5 03/31 /1996 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept ~I 1=t~s~d 1t~;5~ 1:4 87 18,15 ~: l:(? .<~;8.7:.: '417 5.7~;>:;: 6,136>:. ~: :7.:~ :: ... ~....1 .. ::::::::::::~:::::~:~:.: ; .:; .......................11~,~,~0., :Poll ~ ::..:.:.:.:.:~:~~ >. 4y : >1:Qr37:,>; :::1?;91~: : ;::8:3?:::~ ::: 2.~::: :::=Q:?~ :.: ::?~8b . ;: : `5::42... ..: 8:~6:_:: .:.:...:,.;.~...;...:.;.. 9.4::1 ~~~:::::::::: saz: ::: x:30:: ..... : ~~:74: :: ........ ~::1~:55 ::~: .. ::'1:~~::: .::44::: : 4 ::::3:07::: ~: ~:44:::: 1 :::'1:3~~~~ :: 5 ::: 1~:'t~ ~~: :::::::::::~:::::: 9 Calendar Year Retums 12/31 /2005 2005 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 i?ynd...~ ::.....::...... 4;89 . ................................ 1Q,5~ : ........... ...:4$:~i<.~.. ........... .::25 43 .. ........... :~'~ 7.90::::. ............ : ~1Q.~..... ........... .... 5,65 .. ........... ......5.6...... ........... ......1;5....6.,. ........... ............ ...:35,44:::::::::::;:;::::::: ................... :2:4 ::: Palic .::::::::~::~:~ t} .... Y ......................... :::7;45: ........... :.~..:;37:~~~: 3 ........... ~:~~~34:56 :: ........... :~=2~:DA:: ............ ::'I ~ 2~:: 3 ............. ~:=~1~1::2t3: ..~.~..~.~.~.-.~... 2.03.: ...~.~.~...~.. : 2 02 ~ ....~.~..~..~.. .:g:~Al3 :::::::::::::::::::: .5 :.............. .................. . :;I~i#f :::::::::::::::::::::::-0:;5~;:;:: ::: 3,Q~'::: ::: 56d:;:: ::::::9:i.~i;:: ::::4:.34:::: :::::~::~ .. ... 6.9.... ...-6...... ...... $~.. ...~1.3~ ..~:~::::~:~:~:~: ' Retums in Up Markets 1 t 03/31 /1996 3 Yr 5 Yr 9 Yr Incept .............................. ............................. ~~iid:::~.::.:::::::27:5 :::: ............................. ............. ............. :~::~:26;Q~::. ............. ........... ........... ::::28:5:~: ........... ............... ............... ~:~::::~::::?7:8:: ............... Poli ~ ::: 28:8: : ~ .Gy ................. :::: 28:~:~::: ......... ::~::~34:~ : ........... :: ~:: ~:: 33:1): ..... ........ #~to::::: : 95:x:: :::: ~i8:5:::: ::~:: i~3:~::~ :::::~::::8~:3:~ Inception date is March 31, 1996 All dollar values are shown in thousands. Retums for periods exceeding one year are annualized. Returns are net of fees. Retums in Down Markets 03/31/1996 ~ 3 Yr 5 Yr 9 Yr Incept ............................. ........'..... ........... ............... ..~y ..................... ............. ........... 29 ............... ~Ratid~::~::::~:~:~:~:~::63:0::~ : :::~~$~:~ ::: ::::88::3:: ::::::: ~:68i+3~: ( Incept to 12/31/98100°~ Lg Cap) - (1/1/99 to 6/30/00 83.33°~ Lg Cap. 16.67% InYI) - (7/1/00 to 09/30/03 68.86°h Lg Cap, 16.67% Int'I, 16.67% Sm Cap Lakeland Firefighters' Total Equity Universe Comparisons 83.33% BLCC & 16.67% IE r r ann ry rtC~ur ns ~ntvuyn ~~c:rsrnuCr o t , cuva 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr ~ftitid:::~:~:::::::::~ :::::::::::::::::::::: :::::::~;:;:;:;:;:::::::::::::::::::::; ::::::::::;::::::::::::::::~::::::::::~:~:~::::~:~:~:~::~::::~::~:::=::~::::~:::~:~::~:::~:~:~:~:~:::~::::~:~:::~:~:~:~:~:~:~::~:~:: ~:~::~:~:~: Retum 11.50 10.52 14.67 18.15 7.87 3.87 4.17 5.72 6.86 9.71 -tile 24 22 5 35 23 26 15 19 25 15 Return 9.47 7.45 10.37 17.91 6.32 2.09 -0.27 2.65 5.42 8.36 -tile 53 61 45 38 43 50 58 62 48 38 :' lye...' . .I E3f 5th %-tile 15.72 13.71 14.52 21.70 10.27 7.19 6.73 8.12 9.12 10.89 25th %-tile 11.26 10.06 11.62 18.96 7.61 3.87 2.49 4.91 6.74 8.97 50th %-tile 9.66 8.16 10.10 17.33 5.91 2.05 0.27 3.45 5.29 7.88 75th %-tile 8.19 6.42 8.82 15.82 4.70 0.49 -1.44 1.88 4.11 6.51 95th %-tile 6.50 3.88 6.91 13.77 2.66 -1.42 -3.81 0.02 1.86 3.30 Calendar Year Returns Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 Return 1.89 10.52 18.97 25.43 -17.90 -10.71 5.65 15.57 15.16 35.44 -tile 85 22 3 98 14 45 7 73 71 11 Return 2.40 7.45 13.37 34.56 -22.04 -13.23 -11.26 22.03 27.02 35.08 -tile 65 61 32 33 63 62 66 51 42 11 :LJrIiV!et5e ::::::::::::::::::::~::::::~::::::~:::~:~::~:::::::::::::::::~:~ :::::::::::::::::::::::::~::::::::::::~::::::~::~:~::~:~::::::::~ ~::~:~::::::::::::::;:;::;::::: .............................. . 5th %-tile 4.83 13.71 17.32 40.07 -15.59 -2.24 7.11 45.72 35.85 . . 37.28 25th %-tile 3.35 10.06 13.96 35.35 -19.49 -7.82 -2.13 28.81 28.63 32.63 50th %-tile 2.64 8.16 12.18 32.76 -21.19 -11.44 $.48 22.31 23.75 28.08 75th %-tile 2.19 6.42 10.44 30.56 -22.97 -14.68 -12.53 15.06 13.12 23.52 95th %-tile 0.94 3.88 7.61 26.95 -25.83 -18.54 -18.56 5.14 1.99 7.45 Retums are in percent. "%-tfle" Is the percentile ranking within the universe. Retums for periods exceeding one year are annualized. Incept is March 31, 1996 to December 31, 2005 (Incept to 12/31!98100% Lg Cap) - (1/1/99 to 6/30/00 83.33% Lg Cap, 16.67°~ InYI) - (7/1/00 to 09/30/03 66.66% Lg Cap, 16.67°h InYI, 16.67% Sm Cap 9 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Lakeland Firefighters' Large Cap Executive Summary Account Reconciliation 12/31 /2005 2005 11 /30/2003 Qtr YTD Incept ~~mm~..:alu~.:::•: ' : ::..•...rFr..V~' . .~. ~..... .... ~.~~~~:: ai;~vestittaii~:E3/L:>~%:; ::.:::.::.:.::>:.3~`~;: :;: ~ ~::;:~&~;:~~;:~>: ::: i~B.: 1*rdiiigVal~i~:::~::::::: > ::::~:::213z> 2;1~2~:::::: ::::~;:~3~~: I ramng Ketums through December 31, 2005 Calendar Year Returns 12/31/2005 2005 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 . . .:. pa~cy.. ~ 212 .6.~~.. :.~~.~~.. :: Retums in Up Markets 11 /30/2003 1 Yr 2 Yr Incept .....Y ........:.:....:.:.:.~.3 ... ......#4.~............. ....................17.,x:. R:.:::: ::; : :::::~ ~ ;::: ....~t+D .,.... ... .~'~.'5...• :::::::~::~ ::• :: : :::::: 1Qg~.....• .. :::::::::::::::: ::::.:.:.:.:.:: .....• ....11~s. Inception date is November 30, 2003 All dollar values are shown in thousands. Retums for periods exceeding one year are annualized. Returns are net of fees. Retums in Down Markets 11 /30/2003 1 Yr 2 Yr Incept :~~i~1tl~ ::::::::::::::::::::::::~ : ::::: :;:::::::::.:..:. ;.::::: ...~.3...... .::.::::...::::;:::::::::..:.~~:: ~#.3.• 10 D ~i 1 1 C Lakeland Firefighters' Large Cap Universe Comparisons Broad Large Cap Value Trailing Retums tnrougn uecemaer s-i, ~uv~ 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr ~. ~t1d~::::~::::::::~ ::::::::::::::~ :::::::::::::~ :_ ; :::::::: ~ _ ::~ ~::::::::::~:~:::~:;:;::~::::~:::; :::::::::::~:::~::;:~::::::::::::::;:::::::::::::::::::~:::::; ::::::::::: ;::: ................................................... Return 9.14 12.07 15.23 14.20 -tile 9 8 1 9 Pali ~ ::::::::::::: ::::::::::~:::~::: ::::::: ::::::::::::::::::::::::::::::::;:::::::::::;:: ~;:::::~::::;::;:::::::::::::::::: ~ ::~::::::::::::::: .................................................................................. ....LY ......................................... .................... Return -tile ............ 6.15 37 ............ 8.33 32 ........... 6.27 42 . 8.80 46 ~.~n: >;: IYBr~B:~ ::::::::::::::::::::::::::::::::::::::::::::::: ::::::;::::::::::;::::::::::: ; :::::::::::::::::::::::::::::::::::~:::::::~: 5th %-tile 9.98 12.81 12.90 15.39 20.89 10.94 9.47 11.46 11.03 10.43 25th %-tile 7.04 8.98 8.03 10.74 16.65 7.03 4.86 5.69 6.11 7.01 50th %-tile 5.63 7.09 5.65 8.40 14.39 4.80 2.27 2.42 3.84 5.20 75th %-tile 4.46 5.86 4.30 7.18 13.20 3.57 0.42 -0.52 1.80 4.26 95th %-tile 2.11 3.22 1.27 4.54 10.09 1.53 -1.13 -1.99 0.47 2.73 Calendar Year Retums Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 ~`;;d< Retum 1.88 15.23 13.17 -tile 53 1 34 :p... i ~ ::::::::::::::::::::::::::::::::::::::::::: ~ ::::::::::::::::: :::: ::::~ ::::::::::::::::::::::;:::::::::~:::::~:~::::::::::::::::~:~::::::~:::~:~::::~:::::~:::::::::~: Return 2.12 6.27 11.40 -tile 37 42 47 ~tJriiver~a:: ...... . 5th %-tile 4.12 12.90 20.07 36.19 -4.89 7.96 25.81 24.35 29.25 38.11 25th %-tile 2.45 8.03 14.23 29.64 -14.81 -1.08 12.45 18.77 24.45 32.49 50th %-tile 1.95 5.65 11.01 27.57 -19.01 -6.28 3.96 10.79 15.88 28.12 75th %-tile 1.27 4.30 9.69 23.96 -22.30 -11.59 -3.36 3.24 10.50 24.16 95th %-tile -0.25 1.27 5.61 17.08 -25.75 -15.06 -9.78 -4.15 0.80 15.46 Retums are in percent. "%-tile" is the percentile ranking wifh(n the universe. Retums for periods exceeding one year are annualized. Incept is November 30, 2003 to December 31, 2005 ' 11 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Lakeland Firefighters' SMid Cap Executive Summary Account Reconciliation 12/31 /2005 2005 11 /30/2003 Qtr YTD Incept :#~egirrii~ Vali~:: ::: #.86 ........ ......~.~3::~: ~:~::......~..... . iw~t:~low~ ::::::: ::::::::::: ~ ::: ::: =~:~ :: ::::::: =2b~t: ii~ves#ttrk~rlt:f3/L, ;::::::: ~: ::: ;2(F:::~ :::::::::~$:~ : :: ::::::::::: Sti1:: i`i~rig.1laltte :::::::::::::: ~::::::8X5:::~: :::::::~$~'S::: ;:~::::::::1:;~37~:: Investment Pol Trailing Ketums through uecem~er s~, wua Calendar Year Retums RClUlll, 111 VIJ IVIQIRCIti 11 /30/2003 1 Yr 2 Yr Incept Po iey... 11.6. .~~ ~ .~,.. .2~,1~. F.taro :::::::::::......30......... ............................. ..................~~ ._... Inception date is November 30, 2003 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Retums are net of fees. Retums in Down Markets 11 /30/2003 1 Yr 2 Yr incept PilliG~i':.: 5::: >:: ~ ~3:#: : X5:6::% ::::: : .: > ::'::~5:6: 12 _ __ Lakeland Firefighters' SMid Cap Universe Comparisons Mobius Mid Cap Trailing Returns tnrougn uecemner ~~ , ~uu5 2 atrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr ;.~. :t`urt. Return 8.33 15.20 20.21 23.80 -tile 44 20 5 1 ........................................................................................... .................................................................................................................................. Return -tile 6.78 70 11.61 55 8.11 84 13.09 77 ~: ~:::: ~:: #J . er. . hr . e. 5th %-tile 13.31 19.19 20.04 21.22 27.26 16.30 14.41 16.68 16.03 13.99 25th %-tile 9.45 13.76 14.55 17.80 23.76 13.69 11.10 12.17 12.25 11.89 50th %-tile 7.95 11.93 12.09 15.59 21.79 11.26 8.40 8.84 9.79 10.08 75th %-tile 6.44 10.09 9.63 13.38 19.82 8.82 5.70 5.50 7.32 8.26 95th %-tile 4.66 7.02 6.08 10.17 16.28 6.14 0.64 -2.51 4.03 5.81 Calendar Year Returns Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 ............................................................................................................................................ ............................................................................................................................................ >~t1f1C1::: >:~: ;::::: Return 1.06 20.21 27.49 -tile 77 5 1 :f?tifl ~ ::: ~ : :: : : : :::::::::: ~ ::: ::::; ; :::::::: :::::: ;: ::; ::::::::::::::::::::::::::::::::: Return 1.81 8.11 18.29 -tile 59 84 39 Un verge .. .:....:..:.:::.:.::.....:.:...::. :......:. ........................................................................ 5th %-tile 4.62 20.04 26.30 46.99 -6.48 8.11 32.45 42.35 31.29 39.47 25th %-tile 2.94 14.55 20.42 37.60 -12.97 0.81 19.45 21.41 19.91 34.25 50th %-tile 2.10 12.09 16.50 33.16 -15.82 -1.68 14.62 14.35 14.84 31.13 75th %-tile 1.26 9.63 12.22 30.08 -20.54 -6.20 9.13 5.70 6.93 25.73 95th %-tile -0.78 6.08 5.44 22.92 -29.52 -17.19 0.40 -2.02 0.79 18.98 Returns are In percent. "%-tlle" !s the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is November 30, 2003 to December 31, 2005 13 1 i Lakeland Firefighters' Small Cap Fund Executive Summary Account Reconciliation 12/31 /2005 2005 12/31 /2003 Qtr YTD Incept ~:Valk::: ::::::::'33A~4:::: :::~~1~: :: ~~::::1~;~3~6: fiav®Sti7tierlt:fail:::: :::::: 1 A:::: ::::::::~'E;~:: ~:::'::::::::::~fi0~: :i`iidtrig Value :::::: ::::::::: ~38fi:::: :::::~356::: ::::::::::::::1:;:356~: Investment Trailing Retums through uecemner 3~ , ~uuo ' Calendar Year Returns 12/31 /2005 2005 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 - :::: 7:.... . 1= ~ ::::::::::::::::::~: ~ :::::: ~~:8~ ..t~std .. 4,75......3..8.....#.. 50 ..:::::::::::::::::::::::~ :::~:::~:::::::::::::::::::~:::::::~::::::::::::::::::::::::::~::: Piifi~~~ `':::: x:13 ...cy...... ... ~ffR ::::::::::::::::::::= ~: :::::~:6ia~:::::-0:$~:::::: :::::~::~::::~::~::::~:~: ::~ ~:~::::::::~:::::::::::::::::::~:~::::~ ~:::~::~~ ::::: :: ~ ::::~::~:~: b.... A.3$ .............................................................................................................. Retums in Up Markets Returns in Down Markets 12/31 /2003 1 Yr Incept ~ilAd~ '> 9~i8. :~'IS~1:': olicy ..~.... j ~.5.. ~ . . ......................... . R ~~`~ ::::::::::::::: .atw....... ....83g :::::::::::::: ~ ;b:: :::::::::::::::::::::.86.... Inception date is December 31, 2003 ' All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 12/31 /2003 1 Yr Incept Policy:~ :::::::::::.::.9.3.:::::.::::::::::.: ::::::::::::..............-8.0~: ................1(~,6:~ ' 14 Lakeland Firefighters' Small Cap Fund Universe Comparisons Pure Small Cap T raping Ketums through December ~1, lvub 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr ............................................................................................................................................ ........................................................................................................................................... Return 5.17 9.80 3.89 10.49 -tile 73 57 74 65 Po iey.......~.~ .....................~...-....~...~...~.~.~...~..~.~......~..~....~.~.~.~.~..~...~.~.~.~...~....~....~....~...........~......~.....~......~....~.~...~....~...~.. Return 5.88 10.45 4.55 11.23 -tile 59 48 69 56 5th %-tile 12.53 15.70 12.98 17.06 28.36 17.37 18.23 19.21 18.96 16.57 25th %-tile 8.54 12.52 8.68 14.33 23.67 13.12 13.99 14.81 14.44 12.34 50th %-tile 6.49 10.23 6.81 11.55 21.61 10.75 10.81 11.02 11.55 9.63 75th %-tile 4.89 8.55 3.61 8.96 19.89 7.29 7.01 6.14 9.24 7.13 95th %-tile 1.01 3.86 -1.23 4.82 16.79 2.80 1.09 -0.95 5.37 3.94 Calendar Year Returns ...~`X..~.....~...~............~ ...............~.~..~..~.~..~.~..~.~..~.~.~.... ~..........~...~............:.......:.::.:..:::.::::.:.:::::::.; :.:.; ;.;.;.:.:.:.:.;.:.:.;.:.;.:.;.:.:.:.:.:.:.:.:. .................................................................................................................................. Return -tile 1.13 61 4.55 69 18.33 45 Un,vers~. .: ..:.:.::::::::::::::.:~:::: ....................... 5th %-tile 4.28 12.98 25.39 59.91 -3.79 29.44 32.90 48.81 11.96 36.78 25th %-tile 2.50 8.68 21.15 48.09 -11.18 17.11 20.07 27.63 1.93 31.28 50th %-tile 1.39 6.81 17.56 42.91 -16.47 9.63 11.52 14.27 -3.00 25.67 75th %-tile 0.45 3.61 14.18 38.81 -21.72 0.82 2.49 4.87 x.87 20.58 95th %-tile -0.99 -1.23 8.81 32.58 -31.15 -13.27 -10.73 -4.08 -12.41 13.72 rcetums are in percent. "%-tile" is the percentile ranking within the universe. Retums for periods exceeding one year are annualized. Incept is December 31, 2003 to December 31, 2005 15 Lakeland Firefighters' AIICap Growth Executive Summary Account Reconciliation 12/31 /2005 2005 11 /30/2003 Qtr YTD Incept ....................... ...................... :8e~7iNifi!iQ:.Valuia :::: ....................... ................... .................... :::::::::::::::: ~r379 ;:::;:: ................... ... ........... .......... ::::::~~7~;:; ........... ........... ............... ................ ::;::::::::::::::9'~2:: ............... ............... ...................... ....................... ...................... :filet:~IQ~s ::::::::::: ...................... ....................... ................. ................... .................... :::::::::::::~:~::::~ .................... ................... ........... ........... ::::~:~~:1~~:~ ........... ........... ............... ............... :::::~:::~::?!D9:~ ............... ............... ...................... ....................... ~it~Ve3t~~rit:~'3/1:::::: .................... ................... ::::~:::~::::~::~:5.3::~:~: ........... ........... ~:~:~:~:~:~:4 •:~: ............... ............... :::~::~:~:~:~:~2 't :E~Iig~Value ::;::;::: :::~::::::::::::i?~:i~:::::: :~;:;:~?'I~~~::: :::::::::~::1:;~43:1~:: I ralling Ketums through uecemaer ~1, 1uU5 ' Calendar Year Returns 12/31 /2005 2005 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 :Poli =~~ ::: :::: .. cY . . ........ ::::~:::..::~ ...::: 2.86. ................ ::::.::.:::.: 5.17. ........... ....... .............. ............... ::..:....: 6. ....... . 0:~5 ... .... ~.51.:.. .-.-..9.J9 ......:...................:....~:::~::~::::.:::~::~::-:::~:.::~::-:::::::.~:::::.::.:~:::::.:::::::.::.:.:.::.::: Returns in Up Markets 11 /30/2003 1 Yr 2 Yr Incept :eta ~~~ :::;:>:?~::.::'.< : :~~ : '%: ...~a ................ ~.~.... :~:::. ~~~ :'~ ~ :=:::: : .....~~.~.... ~...~. ::::::: :: >::::::,';.`:: .......~.....,.....~s~~.. Palic ~ ~ ::':::: ~ :. ~ ~::.. ....... :R~ ~ :~ :::::::::: ....::.: : ... ~t~ .............. Z`QO.~ ... :::::.:..:.:::: ::: ..... ~tb.~....;....;._. ::::::::::::::::......:...:: .;.;........;.:.:.;..;.99!.6. Inception date is November 30, 2003 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Returns in Down Markets 11 /30/2003 1 Yr 2 Yr Incept ::Pofi~~:~:~:~~ :: ~ -...~..~~!...~..~ ~ :::~:~:~: ~~:3::: ..... ~...~..~.... ......9.!t .............. ...~.~....... ............ ~: .9.~. 16 __ _ ~- 1 ~ Lakeland Firefighters AIICap Growth Universe Comparisons ' Broad Large Cap Growth Trailing Returns through December ~~, 1uu5 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr ~.~. :> Return 11.07 9.93 2.66 9.56 -tile 20 63 89 38 D;~~~j~ ~~~~ ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Return 7.19 9.92 5.17 6.04 -tile 62 63 71 73 ..~.~n.., ..... #.!. IWet~e:::::::::~::::::::: ~::~:::::::::~~~: ~ ::::::: ~ :::::::::::::::: ~ :~:::~:~:~:: ~ ::::~:::::~:: ~ :~:::~:::~:::~:::~::::~::::::::~:::::~::~:::::::::~:~:~:~:: 5th %-tile 15.00 20.94 15.98 16.06 22.03 9.22 6.05 6.85 10.80 11.20 25th %-tile 10.30 14.56 10.65 11.19 17.61 5.31 0.16 -1.24 3.86 6.38 50th %-tile 7.81 11.10 7.27 8.02 14.81 2.59 -2.27 -4.10 0.97 4.08 75th %-tile 6.30 8.60 4.64 5.70 12.38 0.62 -4.62 -6.35 -1.00 2.31 95th %-tile 4.13 5.09 1.30 2.72 9.54 -1.37 -7.86 -9.83 -3.60 -0.01 Calendar Year Returns Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 ........................................................................................................................................... ............................................................................................................................................ ~~fi ..................... ........................................................................ ............................................................................................................................................ ........................................................................................................................................... Return 3.81 2.66 16.92 -tile 31 89 6 ............................................................................................................................................ Return 2.86 5.17 6.93 -tile 59 71 62 .,:.::i:::.:.:: ;:...:.::: .. _. ::.:.:.:.:...:....::.:...:.: ::::,: :..:..::.............._..........:........:. ~Un verse 5th %-tile 6.63 15.98 17.21 40.85 -15.79 -9.94 -0.22 66.15 50.95 37.03 25th %-tile 4.03 10.65 11.08 31.14 -22.77 -14.91 -7.14 43.89 37.77 31.69 50th %-tile 3.14 7.27 8.09 27.09 -25.90 -19.23 -11.77 32.72 31.70 27.88 75th %-tile 2.13 4.64 5.59 24.31 -29.82 -23.97 -17.62 24.68 25.56 23.30 95th %-tile 0.48 1.30 2.15 20.51 -34.42 -32.11 -26.13 15.29 14.10 13.67 Retums are in percent. "%-tile" is the percentile ranking within the universe. Retums for periods exceeding one year are annualized. Incept is November 30, 2003 to December 31, 2005 17 1 1 1 1 Lakeland Firefighters' REIT Executive Summary Account Reconciliation 12/31 /2005 2005 11 /30/2003 Qtr YTD Incept ~.,~11 ~..:.,.:: :: ::::::......:~: :::~:~l~$4:~:~ ~:~: ~ .i9 ~~: ::~::: ~ir#Vest~rt~rli~E3l.G>::: ; ' : »;: >`.7..: " :::'::~:~$::: '?: `: `::>2;~3;: Trailing Returns through December 31, 2005 11 /30/2003 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept :F~.i[jid::::: : '1;39: :.:1$,9 ............. ~21~:t)+4~: :01i ~::~ ...~y .... : : 140(#::: .......... ::$3:~b::::::: :::~ :::::::: ::::: ::::~::::::~:::::~:~ ~~ :::~::~::~:::::~::::::::~: :::: :::::::::: ::::::: :::23:92 :f5itf ... x:;01: .3,~9..: ;; :~ ~~~: ..2.8i~;. ' Calendar Year Retums 1 Retums in Up Markets 11 /30/2003 1 Yr 2 Yr Incept 1=iiid~ :~:: ~ ~ ::::::~fi;:~ : ::385::~::::~~ : ~~ '~ ~:: : ~: 39 . . ~Pol ~ ::::~::~:~::::::2~;::: : ::::X44;:1:~::::::~: 4: ::~ ::::::::::...4..0. :R~...; ...: ...:. ...~t~ .:..............$8.0..... :::.... .:: ....$.7..~.-.......... :. :. ..:::: ........:...........$~.0 . ' Inception date is November 30, 2003 Ali dollar values are shown in thousands. Retums for periods exceeding one year are annualized. Returns are net of fees. Retums in Down Markets 11 /30/2003 1 Yr 2 Yr Incept :~:ti~ttl :~:~::~:=:~::~::::~:~:~6:4:::: ::: ~~k1~:8: :::::::: :::::::....1.1.8. :pt~i~i .::::::::::::::::......7.~.... .... f2.,~~:::::::::::: :.:..: :: ;:;::::::x::::.....12.2.. :f.~ati~ :::::::::::::::::::::::::88:~:~::: :::: ~ J8:2:~:::~: ~~~ .... ~ ~ :: ~::::::::::::::.:.:.:::. ...............9!E~.2:~ ' 18 Lakeland Firefighters' REIT ' Universe Comparisons Mobius REIT 1 1 1 7 1 I ralung Ketums through uecemner ~~ , ~uu5 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr Return 5.24 20.11 12.39 19.91 -tile 83 80 76 92 .. Olley ..................~....~....~..~...~..~.~....~.......................~.~......~......~....~..~......................................~............~.. . ........................................................................................................................................... Return 6.70 22.85 14.00 23.20 -tile 74 54 59 68 5th %-tile 11.06 28.27 18.78 29.28 32.84 26.20 22.97 25.50 22.14 17.39 25th %-tile 8.83 24.95 16.66 26.58 30.59 23.72 21.36 22.75 19.22 14.60 50th %-tile 7.88 23.04 14.80 24.85 29.31 22.47 20.14 21.90 18.43 13.40 75th %-tile 6.64 21.44 12.56 22.50 27.39 21.65 19.20 20.88 17.33 12.44 95th %-tile 3.13 15.83 8.19 19.27 24.62 19.38 17.95 20.05 16.40 11.78 Calendar Year Returns Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 Firitici::::: :::~::::::::~ ::::::: ::::::::~::::::::::: :: :::: ::: ~::::::~: Retum 1.60 12.39 27.93 -tile 93 76 100 Foii ~ :~:: :::~ ::::::::::::::::::::::::::::::::::::::::~_ :::::::::~:::::~::::::::::::::::::::::::~::~:~: =::::::~::~:~:::::~::::::~::~ ...~x .......................................... ~......~...................................................................................................... Return 2.50 14.00 33.14 -tile 83 59 69 .:...I ........::::::::::::::::: :::::::::::::::::: : ::::~:: ;~::::::::::::~::~:::::::::~::~:~:~:~:~::~:~::~:~:~::~:::~:::::::::::::::;::::::::::~:::~::: ::: ::::: Un.v~e~ ..........................................................................................................................................~..~................... 5th %-tile 5.72 18.78 40.85 44.25 11.64 14.82 38.32 5.46 -7.61 31.16 25th %-tile 4.41 16.66 38.29 39.84 7.71 12.49 33.42 0.27 -11.44 26.38 50th %-tile 3.80 14.80 34.71 38.19 4.93 11.11 31.83 -1.20 -15.16 24.59 75th %-tile 3.15 12.56 32.63 35.87 4.26 9.75 29.00 -2.10 -16.73 20.64 95th %-tile 1.43 8.19 28.87 33.11 1.33 6.71 26.68 -4.53 -18.91 18.23 Returns are In percent. "%-tile" Is fhe percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is November 30, 2003 to December 31, 2005 19 Lakeland Firefighters' Supplemental Pension Plan Executive Summary Account Reconciliation 12/31 /2005 Qtr 2005 YTD 03/31/1996 Incept :.:.:aluQ :.: ...i...•. :.. .....r ...... .............. . ~fslt3tFlQvi§:::::::::: ~ : : : ::::: : :::::::fl; : ; :: ~~; :~::~?~ : ::~::~::~'~~~'~~~9: :fi~ie5ttlrt~rtt:!E3/L :: :: :::::::::~::: ~'1:a~:~:: ::::~:::~(~5.6,:;: :::::::::::::::8;:776;: Eiit#ri:g.lalias ::.:::.:::.:. ;:.:.;>::.: ~~45~32~>:.: .:.:.3~'592:.: ::.:;:.::i4;~9~:: Investment Trailing Ketums tnrougn uecemper 3~ , wuo 03/31 /1996 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept 7: 1::::: : 1:.:.' :::: ::::1 ~1~::~: :::~?:~8~ :: ::::~4:~fi::~:: :::5:~5 ::: ::~:5:8~ :. 6.~' . . S 4 Q114y:. 5::~~ : .::?5~ :. :?2;U~>': :.,:fi:1:~::' : 3:8T :.: ~:7`~ :::::: ....2..,..... :::::::: 8:::::: ....~A...... :..:7~ :: :: ...,~ ..~.... ~:4 :::: .......1 ..... :::::::::::::::::::::~:9 ~: .............................~. .. #]iff':::::::: 2::89:: . `:::;~~k0::: ' :.D::8~:::.: ':1::'1:6:::: ;:::::?00:::: ::~;68:»> .:: '~::: : ;.~ .$ ..... ::': ~D:$5::: ........... ::(~: ~ ~: ~9 . ........... ::'::::::~::::'::' ::::: b 8 : ~ 2~: ......................... . ' Calendar Year Retums 12/31 /2005 Qtr 2005 YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 t=t~i~ii ~:..... ': 1~'T . ' ................................ ................................ ::. 7,91..': .......... ........... ..:>xa;4... ............. ............ ..17:51!1::: .......... ........... :: ~7:99:~:~ ........... ........... : X24 :':: ............ ............ ::.8,3.... ........... .......... ....$.x.. ........... ........... . 1~ 7.0.. .......... ........... . 22,8 ~: .~::~: ................... ................... ................................ f?Wailic ::::::::::::::::::~f7A::: ....Y .............. ......... .......... : :~5i:5~:::: ........... ............. ::: ; .:9:...::::: . .......... .2'1:82 ::: ........... ::::9:914 :: - ............ ::: =4' ....:.:: ~8 :~ :. ........... :::: ~ 2 ~ 56:: - :: .. . . ..... ........... ~:~:42::~4:~:: .......... .......... ::1$:~8::: .......... ................... :::.~ ~:;5~::::::::::::~::: ~'............... . ~7iff :::::::::::::::::::::=0~~::::: :::: 234~:;:: :': ::::::;~d$::.. ::~~ :::: .... ,$1... ::::' ~: ' :: ... `~. 95... :::::4:~:::~ ... l7 ....... ::'1~t~:9~: : .......... :~::-3~::: ........... :::=~:88~: ........... :::~~k3>J ::~::::~::: .................. . RCLU111, III V~,l IVIQIRCI, 03/31 /1996 3 Yr 5 Yr 9 Yr Incept .............................. ............................. ............. ............. ........... ........... ............... ............... Roli ~~ :: 1:8:3: ..GY . '#8:4:~:: : >>38:~>< :~:~: :< ;1:$:~: .............................. ............. ........... ............... Retums in Down Markets 03/31/1996 3 Yr 5 Yr 9 Yr Incept ............................ ............................ ~~ ~ ................ .... ........ .~.,.... .. ~,. d ................~3,...... .............. ......(....... ... ,....T'f ..'.'.' .........8.~?..... ........... ............ .'.'.'.T j. .' .'. .........1.x,. ............... ............... '.'.'.'.'.'.'.'.`!'1'. .' '. ............1,3., ......Y ........ ....................... .................... .......$:~... ........ 76,x. Ratio: ~ :~~:~::::'~^8~~~::: ::::~:$ia:~::: :::~::7fl;2~:: ~:::~:::~::~:7~;2~: Inception date is March 31, 1996 t All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 1 (Incept to 6/30/97 50-40-10}{7N/97-12/31/97 50-40-10}{1/1/9&9/30/98 55-40-5 }{10/1/9&12/31/98 50-40-10}{1/1/99- 6/30/00 50-10-35-5}(7/1/00-9-30-03 ' ' 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Lakeland Firefighters' Income Fund Executive Summary Account Reconciliation 12/31 /2005 2005 11 /30/2003 Qtr YTD Incept ~:Be~iiiit<~Valu~~: >>< ::~:3~60 .-.. .-.,..,~?A.::.: : :::>:13~~: .......................... .......................... .................. ................. ............. ............. ............ ............ i i3vesti7t~iil : E3/L:: ~ :::: : ::: ~ :: ........ ............. ........... . ;~itdin:g:ll~~l~;o;:: ~ :::::::: : :::::::i3;~8::::::: :;:~328:::::: ~ :::::1:;:~?i~;: Trailing Retums through Decemper 31, 1UU5 11 /30/2003 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept ........... ........... Fu~id :::: ...... .. ........... ............ ............. :::::57.2::: ....... ............. ........................................................... ........................................................... ::'1~0:79 :::::::::::::::::::::::::::::~:::::::::::::::::::::~: ........................................................... ......................................................... ......................................................... ::::::::~:::::::::::::::::::::::::: ~~:~ :::::::: : ~~ ~~ .................... ......... ..... ...... 1.88-: ......................................................... pY .... .. ........... . ................... ... .......... .......... ..... -...................................... .. 1~t:42:: F~iff: ::. 1:.. ::..3,..3... . .. ...4.99::.. % ::: ~ < - ., 1.54 . Calendar Year Returns 12131 /2005 2005 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 ... Pofi ~ :: ::::~:: 3:2~9:~::~ ::: 6:...: $5 ::'#6:...;: 94 ~::: :::::: :~::::: ::~::~:~:~::::~ :~:::: ::: ~:~ ::::::::::::: :::: :: ::::::::: ::: .~.-........ ....x.44,:..- :::.:1,1.3- . ....:-0.$~ .......::::::::~:::.: ~ - Retums in Up Markets 11 /30/2003 1 Yr 2 Yr Incept d .6.2... ... ~# ,'~ Po icy .............. 7,t .... ....#~.~ ......... ..-................1 ~,7 . ::7:.: ::: .::::: : :::.:~: Inception date is November 30, 2003 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Retums in Down Markets 11/30/2003 1 Yr 2 Yr Incept ~.s. -:-.::-cy ::::::.......~0...... ..,.....-0.3:.~.......;. ;.......;..;-; ...:x(3.3:. 20 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Lakeland Firefighters' Income Fund Universe Comparisons Convertibles Trailing Returns through December 31, 2005 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr Return 2.76 6.23 5.72 10.79 -tile 100 64 29 1 .... ~Y .................~............................................................~................... .................~.........~..•.. . ........................................................................................................................................... Return 5.07 7.14 6.85 11.78 -tile 62 49 18 1 ............................................................................................................................................ ........................................................................................................................................... :.n.... 5th %-tile 10.32 11.16 8.01 9.98 18.09 9.96 7.84 8.23 11.40 12.39 25th %-tile 5.96 8.47 6.10 7.16 14.41 8.61 5.89 5.64 7.50 7.60 50th %-tile 5.35 7.02 3.62 5.69 12.44 7.15 4.38 3.65 6.43 6.24 75th %-tile 4.74 5.57 1.14 4.21 10.46 5.68 2.87 1.67 5.35 4.89 95th %-tile 3.52 4.24 -0.25 2.68 9.16 3.94 -0.58 -0.93 4.28 4.16 Calendar Year Returns Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 ........................................................................................................................................... ............................................................................................................................................ Return -0.83 5.72 16.10 -tile 100 29 29 ,.P01i~t.:.:: :: ...................................................~....~.~......-...~..~ ...~.~.... .~.~.................~......~....~.~.~.~, Return 1.21 6.85 16.94 -tile 25 18 25 :~Un verbs,.... ............................................. ..................................................................: .:....~...~.~.~.. 5th %-tile 2.44 8.01 31.65 51.48 12.54 18.10 29.79 96.97 37.06 35.77 25th %-tile 1.16 6.10 16.69 35.36 -3.90 5.16 13.40 41.55 21.10 26.48 50th %-tile 0.76 3.62 12.74 26.66 -9.60 -5.65 2.69 28.77 12.48 23.49 75th %-tile 0.36 1.14 8.43 21.54 -19.73 -12.64 -7.09 9.40 6.04 19.00 95th %-tile -0.43 -0.25 5.62 11.80 -29.37 -24.94 -20.19 -0.64 -2.57 13.37 Returns are in percent "%-tlle" Is the percentlle ranking within the universe. Returns for periods exceeding one year are annualized. Incept Is November 30, 2003 to December 31, 2005 21 1 1 1 1 1 1 1 1 1 Lakeland Firefighters' International Equity Executive Summary Account Reconciliation 12/31 /2005 2005 10/31 /1998 Qtr YTD Incept ....................... .......... . ...:...V ...:... : ;:8~!m~ alu~ ................... : ::: :~;:..... .: .394 ........... : . ~::...., :: ............... ::::::.:~...:: :::::: .:. ::::.:. ~0:. :filet:Floe-~ ::::::::::::::: ....................... ....................... ::::::::~::; ::~::~:::;~~::: ................... ................... : ~ :::::::::~~:~:~ ............ ........... ::::::~::::~7:~$: ............... ............... ....................... idvest~t4~t E3/L~: ................... ~>::88:~>: ........... ::~: :~:1~~`> ............... :~:~`>': ~~. >~t~5~: i=rtditig V~lt~e::::: >:.>a?i:,5:~:: » :.:~?#5~:; :.>::;:.:;1:;~45~:: Investment Nol I raning Ketums through uecember ;~1,1uu5 10/31/1998 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr Incept ....................... Fetid::.:.:1~3t3.. ....................... ........... ..'14.71.. ........... ........... ...::19:G1:::. ........... ............ ::::.9.8~. . ............ ........... ::::3~:: ........... ........... O;Q8.. ........... ............ ...:2:53::~ :: ............ ................................................ .......:..... .:.. ..... .. .... ....::~~:3:44:: ...................................... . . ........................ #?o1i ~ :::::::1402:: ....~`Y ................ ........... ::17":~'i::: ........... ........... ::~4:1$:~:: ........... ........... ::12:?4 :: ............ ............ :::4:44::: ........... ........... :::1::53::: . ......... ............ ::::4:...:::. .t16 .:: ............ . .. ..... ................................................ ~:::::~::::~:~ :::::::: ::::::::::~: ~:~:::~::::::: ~ ~ ~.~:~ 6.06 . ................... ICI ..~f .............~,1'2... ~ ~ ... ~,~i0... ::~4~57 .. 2.9~i.... ::.:~U:98:. 1,4 ........5 .. .. ,.....,x.33...:: ..... ..:~..:...~ :: :;:::::::::::::::: .:: ::::::.:::::::::::::......2.8~'.. ' Calendar Year Retums 12/31 /2005 2005 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 :A~ .:.. _ Fi~tid::::::::::: ,92 :: .1: :..::. .: ~:...30... .:....: . :.:.~~.2~:::: ::.3:Q.~a~ : . =:1:~;9!6. r ...:... ....1~:.5~:: ::::=1:~:28:: :.:.#~:5Q ::::::::::::::::.::::::::::::::::::~ Po1i ~ ::::::::::::::: ?t~:'12 :: ...Gy ......................... ::1:4: ~ 2~:: 0 ........... ::~20:~t):: ........... : ~ ~ 1:~~ 39 .......... ::=~~...:... 5.85.: ............ : :2#:Zi::~ - ........... :~:~1: ~ : ~ ~~~:: - ........Q.. ~:~~ 2~~: ............ . ifF 0.$f} .: ::~:-~:~2 : :~::=x:48:: ::: ~ 1{~:: :::: O:ifi9:: :::: 4G$:~:: :::=$:32~:: :~:~:=$:"~~:~:~:::::~:~::~:::::::::~:::::~:~:::~:~:-::: Retums in Up Markets 10131 /1998 3 Yr 5 Yr 7 Yr Incept ..t~1d ................3y..~ ..... ..,..3~..3.... .....~1~~~. ..... .....29a~4 . .,... ::Policy ....:.........~~,2.:.. ....3~.8...., ..,..34 # . ...........3~.~: Inception date is October 31, 1998 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. Returns in Down Markets 10/31 /1998 3 Yr 5 Yr 7 Yr Incept ... ~~.f1' .. X1.0. ...py ..... ..................... ...........8...: ......._~t.8:.. ........... X1,,6., ::::::9 ..:..::::: f#at?.4::::~::::.: .......8,4 .. .... ::::::::::::.~.::::: .......91.,x..:... : ::::.~:~:: ~ : ......97.2.,. :::::::: ;~~ :: ...........:..:9.x,2.: 22 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Lakeland Firefighters' International Equity Universe Comparisons International Equity Tralling Retums through December 31, 1UU5 2 Qtrs 3 Qtrs 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr ............................................................................................................................................ ........................................................................................................................................... ~u d :::::::::::::: : : ; ;; :;:; ::::;:;:;:;:;:; ;:; ;:;: ; ;:;:;:;:; ;:;: ;: :;:::: ::;:;:: ;::;::;::;:;:;:;::;:;::;:::;:::::::;::;:;:;:::;:;:::::;:::;:; ;:;:: ; ; ;::: ;:;:;:: ; ::: ;:;:;:;: ...n :: Return 12.74 11.34 11.30 14.71 19.61 9.84 3.96 0.08 2.53 -tile 86 88 87 84 91 85 70 73 94 ............................................................................................................................................ Return 14.99 14.13 14.02 17.31 24.18 12.74 4.94 1.53 4.86 -tile 72 69 67 55 54 57 61 59 74 ............................................................................................................................................ ,n.... #J.tY~~B:~ ::::::::::::::: ::::::::::~:::::::::~::::::::::::::::::::~:: :::~:~ :::::~::~:::~::~:~:~:~::~:::~:~:~:::~::~:~::::::::: :: ~::::::::::::::::::::::~ 5th %-tile 31.01 36.30 3$.92 32.95 41.72 29.68 22.05 14.85 21.03 16.56 25th %-tile 20.83 22.99 23.76 23.42 30.64 19.45 12.49 7.77 13.67 11.06 50th %-tile 16.71 16.01 16.31 17.76 24.57 13.64 6.80 3.10 8.60 7.85 75th %-tile 14.57 13.38 13.13 15.43 21.34 10.90 3.54 -0.09 4.71 5.83 95th %-tile 10.17 9.68 9.40 13.25 18.68 7.81 0.26 -3.33 2.19 3.69 Calendar Year Retums Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 .................. ................ ............ ............ ............ ........... ............ ............. .................................. Return 4.92 11.30 18.22 30.07 -14.96 -16.55 -17.28 18.56 -tile 48 87 62 88 54 43 57 94 Pili ~ :::::::::: ...~'Y .......... :::::::: ............... ~" ~ : :~:: .....~...... ::::::::~::~:: ~............ : : .~.......... ::~ :::::: ....... ...... :::::::::::~: .....~...~...~. ~::~::::::~:~::: ~.~.~...~..~.~.~... : _ :~::::::::::::::::~:::::~:::::::: ..~........~..~... , ................................ Return 4.12 14.02 20.70 39.17 -15.65 -21.21 -13.96 27.30 -tile 65 67 39 50 59 63 41 79 .: i :: :: .. :.:.......: :. .. :. :..............................:.:...._......:..................'.............:........:. :Un,yerss ::::::: :::::::: 5th %-tile 10.46 38.92 32.32 65.72 1.26 2.71 2.11 117.71 28.21 22.88 25th %-tile 6.52 23.76 23.60 48.59 -8.48 -10.53 -8.63 67.62 17.92 11.70 50th %-tile 4.77 16.31 19.34 38.92 -14.41 -18.53 -15.84 47.72 11.85 5.11 75th %-tile 3.66 13.13 16.57 33.20 -18.10 -23.29 -24.08 29.01 1.27 -2.62 95th %-tile 1.85 9.40 12.66 27.55 -23.32 -29.32 -34.43 17.12 -30.21 -30.95 Retums are In percent. "%-tile" Is the percentile ranking within the universe. Retums for periods exceeding one year are annualized. Incept is October 31, 1998 to December 31, 2005 23 Lakeland Firefighters' Supplemental Pension Plan Up Market Returns GJ.VV 70 % --- - - 20.00 - - ------ - - - - - - - - - - - - - - - 15.00% -- - - - - -- - 10.00% -- - - - -- - - 5.00% -- - - - -- - - 0 00% . 3 Yr 5 Yr 9 Yr Incept Fund (%) 19.97 18.19 18.39 17.99 Policy (%) 18.27 18.40 19.73 19.19 Difference (% ) 1.70 -0.21 -1.34 -1.20 Ratio 109.30 98.86 93.21 93.75 # Up Qtrs 9.00 13.00 25.00 28.00 Down Market Returns 0.00% -5.00% --------- - - - -10.00% --------- - -15.00% - --- -- --- - 20 00% - . 3 Yr 5 Yr 9 Yr Incept Fund (%) -4.44 -16.01 -11.29 -11.29 Policy (%) -3.46 -18.55 -16.09 -16.09 Difference (%) -0.98 2.54 4.80 4.80 Ratio 128.32 86.31 70.17 70.17 # Down Qtrs 3.00 7.00 11.00 11.00 ^ Fund (%) ~ Policy (%) (Incept to 6/30/97 50-40-10}(7!1/97-12/31/97 50-40-10}(1/1/98-9/30/98 55-40-5 }(10/1/98-12/31/98 50-40-10}(1/1/99- 6/30/00 50-10-35-5}(7/1/00-&30-03 24 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Lakeland Firefighters' Supplemental Pension Plan Objective Comparison $1 $1 $1. $11 a I u e $'. $; $~ Inception date is March 31, 1996 All dollar values are shown in thousands. (Incept to 8/30/97 50-40-10}(7/1/97-12/31/97 50-40-10}(1/1/9&9/30/98 55-40-5 }(10/1/98-12/31/98 50-40-10}(1/1/99- 6/30/00 50-10-35-5}(7/1/00-9-30-03 25 uvv mvi JVi aVi uvi mv[ JV[ JV[ UU[ MU3 JU3 SU3 UU3 MU4 JU4 JU4 UU4 MU5 JU5 505 DU5 quarter Ending ^ Fund -~ Policy $ Nominal 7.50% -^- CPI + 3% i i i i i i i i i i i Lakeland Firefighters' Supplemental 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 policys 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. 26 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Lakeland Firefighters' Supplemental Pension Plan Attribution of Returns Attribution of Performance to show Manager Contribution Policy + Manager Contribution =Fund Attribution of Manager Contribution between Asset Allocation and Security Selection sset Allocation ecurity Selection ... .... ... : ; ............................... ............................... ............................... >::IVt~tiag~i':Gbi~iti~it~itti~fi:: Current Quarter -0.37 0.14 :: :::::p;g~:: Year to Date -1.27 3.66 :::::: .... .... .... .... ::::::::::::::::::::~:::~:: ~ :::~:~::~ ~:::2;3~:: ............................... .............................. ............................... ......................... .. Years 2.70 .52 .... .... .... .... :: .............................. ............................... .............................. ............................... ;::~;$~: Years 0.95 .95 .... .... .... .... :: .............................. ............................... .............................. ............................... ~:~:~:~1::00:~ 9 Years -2.98 3.97 :: .... .... .... .... :::: :::~:::~:::::: ~:: ~:~i~~g~: ............................... .............................. ............................... ............................... Incept -3.33 4.25 :::: : ~:: ~ :::::~:: ;::::::;::~;:::::::::{~~2:: Policy :::::: ... .... ... .... :::::::::A~ail2ge~:!/cibi(i'titiri:: ............................... ............................... ............................... ............................... Fund Current Quarter 1.70 :: ~ :: ~:~::~::~:~:~:~:~::~:~:~:~:~~ :~:~:~ ~~~;~3~~ 1.47 Year to Date 5.52 :::~: :::~::~::~:~:::~:~: ~ ::~:~ :::~:~:~~ :~~:~9:~ 7.91 3 Years 12.09 :::::::: .... .... ::::::::~:::::::::::~::;:::::::::::::::;:::::::~:82:~ ............................... .............................. 12.91 5 Years 3.87 ::~ ~::::~~:OQ:: 4.87 Years .41 .... .... .... :~: ............................... .............................. ............................... ~:::;:b:99~: .40 Incept 7.95 :~ : ~ : ::::::::::::::::::::::~:~:;:::: :::0:92: 8.87 Asset Allocation + Security Selection =Manager Contribution (Incept to 6/30/97 50-40-10}(7/1/97-12/31/97 50-40-10}{1/1/9&9/30/98 55-40-5 }{10/1/9&12/31/98 50-40-10}{1/1/99- 6/30/00 50-10-35-5}(7/1/00-9-30.03 27 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Lakeland Firefighters' Supplemental Pension Plan Asset Allocation vs Targets 7o.oo°i ------------------------------------------------------------------------------------------------------------------------------------------ so.oo°i ---------------------------------------------------------------------- 50.00°/ ------------------------------------------------------------------------------------ ---------------------------------------------------------------------------------------- 40.00°/ ------------------------------------------------------------------------------------ 30.00°/ ---------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------ 20.00°/ ~-------------------------------------------------------------------------------------------- 10.OOo/ ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 0.00% M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 D05 Quarter Ending ~ Cash & Equiv ~ Target 50. 40. 30. 20. 10. 0. 80 70 60 30. M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 Quarter Ending ~ Equity -~- Target S05 D05 100°°'°t1, t--I . t-1. I--1. t--I ~ r~1. I--1 ~ t--I , I~-1. I--I . t-1. I--1. t--I . t-1. I--1. I~-I ~ I--1 I--I f-1. I--1. I-1 0.00% M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 D05 Quarter Ending ^ Fixed Income -~- Target (Incept to 6/30/97 50-40-10}{7/1/97-12/31/97 50-40-10}(1!1/98-9/30/98 55-40-5 }(10/1/98-12/31!88 50-40-10}{1/1/99- 6/30/00 50-10-35-5}(7/1/00-9-30-03 28 Lakeland Firefighters' Supplemental Pension Plan Asset Allocation vs Targets 60 40. 10 0 80. 40 30 20 10 M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 D05 Quarter Ending ~ Internationa ~ Target ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 J S 4 D 5 J 5 S 5 D 5 Quarter Ending ~ Small Cap ~-- Target (Incept to 6/30/97 50-40-10}(7/1/97-12/31/97 50-40-10(1/1/98-9/30/98 55-40-5 x(10/1/98-12/31/98 50-40-10}-(1/1/99- 6/30/00 50-10-35-5}(7/1/00-9-30-03 29 Lakeland Firefighters' Supplemental Pension Plan ' Asset Allocation Effect ° ' 4.00 /o 3.00% P 1 e r 2.00% c ' e 1.00% n t 0.00% ' E f f -1.00% e t c t -2.00% ' -3 00°/ ' ° M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 D05 Quarter Ending ' Securit Selection Effect Y ° ' a.oo /o ' P 3.00% e r 2.00% c e 1.00% n ' t 0 00% E . f f -1.00% ' e c t -2.00% 1 -3.00% nnui Dui sui uui Muz JOZ sue D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 D05 ' Quarter Ending ~ Quarterly Effect Cumulative Effect t (Incept to 6/30/97 50-40-10}(7/1/97-12/31/97 50-40-10}(1/1/98-9/30/98 55-40-5 }(10/1/98-12/31/98 50-40-10}(1/1/9 6/30/00 50-10-35-5}(7/1/00-9-30-03 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Lakeland Firefighters' Supplemental Pension Plan Manager Contribution 5.uu r° 4.00% ---------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- 3.00% ------------------------------------ ----------------------- ----------------------------------------------------------------------------------------------- 2.00% -------------------------------- --- -------- ----------------------------------- R e 1.00% -- --------------------- -- -------------~-----_-_-.---------------------- - t u 0.00% r n -1.00% --------- --------- ---------------------------------- -2.00% --------- --------------------------------------------- -3.00% --------- ------------------------------------------------- -4.00% M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04 J04 S04 D04 M05 J05 S05 D05 Quarter Ending ~ Quarterly Cumulative Growth of $100 Fund vs Policy g v a ~ u e uvv my~ wi avi uu~ mug Luc auz vuz Mus Ju3 Su3 uu-s MU4 Ju4 Su4 D04 M05 J05 S05 D05 Quarter Ending ^ Fund $ Policy (Incept to 6/30/97 50-40-10}(7/1/97-12/31/97 50-40-10}(1/1/98-9/30/98 55-40-5 }(10/1/98-12/31/98 50-40-10}(1/1/99- 6/30/00 50-10-35-5}(7/1/00-9-30-03 31 1 Lakeland Firefighters' Supplemental Pension Plan ' Quarterly Comparison Analysis ($) 1 [l Period Ending Fund Policy Diff Nominal 7.50% Dill CPI + 3% Dill Mar 1996 7,235 7,235 0 7,235 0 7,235 0 Jun 1996 7,685 7,711 -27 7,658 27 7,631 54 Sep 1996 7,818 7,816 1 7,717 101 7,660 158 Dec 1996 8,167 8,165 1 7,777 390 7,675 492 Mar 1997 8,079 8,101 -22 7,758 322 7,640 439 Jun 1997 9,169 9,074 95 8,051 1,118 7,857 1,312 Sep 1997 9,705 9,522 184 8,107 1,598 7,864 1,841 Dec 1997 9,788 9,682 106 8,134 1,654 7,802 1,986 Mar 1998 10,392 10,369 23 8,202 2,191 7,826 2,566 Jun 1998 10,527 10,758 -231 8,481 2,046 8,054 2,473 Sep 1998 10,123 10,284 -161 8,540 1,583 8,042 2,081 Dec 1998 10,893 11,308 -415 8,616 2,277 8,031 2,862 Mar 1999 10,836 11,390 -553 8,647 2,190 8,013 2,824 Jun 1999 11,380 11,643 -263 8,661 2,718 7,986 3,393 Sep 1999 11,130 11,438 -309 8,933 2,197 8,239 2,891 Dec 1999 11,585 12,455 -871 9,031 2,554 8,260 3,325 Mar 2000 11,739 12,677 -937 9,015 2,724 8,282 3,457 Jun 2000 11,877 12,407 -529 9,107 2,771 8,329 3,549 Sep 2000 12,200 12,586 -386 9,423 2,777 8,599 3,601 Dec 2000 12,340 11,935 406 9,500 2,841 8,585 3,755 Mar 2001 11,726 10,973 753 9,517 2,209 8,597 3,129 Jun 2001 11,763 11,330 433 9,563 2,200 8,629 3,134 Sep 2001 10,902 10,446 456 9,896 1,006 8,867 2,035 Dec 2001 11,692 11,249 442 10,077 1,614 8,854 2,838 Mar 2002 11,658 11,033 624 10,033 1,625 8,798 2,860 Jun 2002 11,246 10,274 971 10,115 1,130 8,824 2,421 Sep 2002 10,229 9,436 793 10,419 -190 9,063 1,166 Dec 2002 10,458 9,838 620 10,493 -35 9,014 1,444 Mar 2003 9,933 9,492 441 10,515 -582 9,075 858 Jun 2003 10,888 10,510 378 10,611 278 9,019 1,869 Sep 2003 11,239 10,987 253 10,970 269 9,325 1,915 Dec 2003 12,061 11,799 261 11,127 934 9,304 2,757 Mar 2004 12,318 11,970 348 11,187 1,131 9,380 2,937 Jun 2004 12,118 11,763 355 11,231 887 9,403 2,715 Sep 2004 12,591 11,981 609 11,618 973 9,664 2,927 Dec 2004 13,601 12,786 816 11,814 1,787 9,739 3,862 ' All dollar values are shown in thousands. ' (Incept to 6/30/97 50-40-10}(7/1/97-12/31/97 50-40-10}(1/1/98-9/30/98 55-40-5 }{10/1/98-12/31/98 50-40-10}(1/1/9& 6/30/00 50-10-35-5}(7/1/00-9-30-03 ' 32 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Lakeland Firefighters' Supplemental Pension Plan Quarterly Comparison Analysis ($) Period Ending Fund Policy Diff Nominal 7.50% Dill CPI + 3% Dill Mar 2005 13,363 12,482 881 11,889 1,474 9,827 3,535 Jun 2005 13,616 12,624 992 11,961 1,655 9,825 3,790 Sep 2005 14,381 13,187 1,193 12,397 1,984 10,336 4,045 Dec 2005 14,592 13,412 1,180 12,623 1,969 10,309 4,283 All dollar values are shown in thousands. (Incept to 6/30/97 50-40.10}(7/1/97-12/31/97 50-40-10}(1/1/98-9/30/98 55-40-5 }(10/1/98-12/31/98 50-40-10}{1/1/99- 6/30/00 50.10.35-5}(7/1/00-9-30-03 33 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Lakeland Firefighters' Supplemental Pension Plan Quarterly Comparison Analysis (%) Period Ending Fund Policy Diff Nominal 7.50% Diff CPI + 3% Dill Jun 1996 2.19 2.55 -0.36 1.82 0.37 1.44 0.75 Sep 1996 2.80 2.44 0.36 1.82 0.98 1.44 1.36 Dec 1996 5.53 5.53 0.00 1.82 3.71 1.24 4.29 Mar 1997 0.87 1.17 -0.30 1.82 -0.95 1.64 -0.77 Jun 1997 11.64 10.16 1.48 1.82 9.82 0.84 10.80 Sep 1997 6.86 5.94 0.92 1.82 5.04 1.24 5.62 Dec 1997 2.10 2.96 -0.86 1.82 0.28 0.74 1.36 Mar 1998 7.03 7.96 -0.93 1.82 5.21 1.34 5.69 Jun 1998 0.03 2.51 -2.48 1.82 -1.79 1.24 -1.21 Sep 1998 -2.91 -3.50 0.59 1.82 -4.73 1.04 -3.95 Dec 1998 8.41 10.76 -2.35 1.82 6.59 0.84 7.57 Mar 1999 0.64 1.84 -1.20 1.82 -1.18 1.34 -0.70 Jun 1999 6.35 3.49 2.86 1.82 4.53 1.44 4.91 Sep 1999 -3.11 -2.66 -0.45 1.82 -4.93 1.74 -4.85 Dec 1999 4.68 9.47 -4.79 1.82 2.86 1.04 3.64 Mar 2000 2.94 3.27 -0.33 1.82 1.12 2.45 0.49 Jun 2000 1.79 -1.53 3.32 1.82 -0.03 1.44 0.35 Sep 2000 1.45 0.24 1.21 1.82 -0.37 1.44 0.01 Dec 2000 1.95 -4.41 6.36 1.82 0.13 0.94 1.01 Mar 2001 -3.75 -6.81 3.06 1.82 -5.57 1.95 -5.70 Jun 2001 1.38 4.40 -3.02 1.82 -0.44 1.85 -0.47 Sep 2001 -8.49 -9.00 0.51 1.82 -10.31 0.94 -9.43 Dec 2001 7.24 7.68 -0.44 1.82 5.42 -0.16 7.40 Mar 2002 1.69 0.12 1.57 1.82 -0.13 1.95 -0.26 Jun 2002 -2.70 -6.02 3.32 1.82 -4.52 1.44 -4.14 Sep 2002 -10.03 -9.24 -0.79 1.82 -11.85 1.34 -11.37 Dec 2002 3.36 5.46 -2.10 1.82 1.54 0.74 2.62 Mar 2003 -3.43 -1.80 -1.63 1.82 -5.25 2.55 -5.98 Jun 2003 10.62 11.77 -1.15 1.82 8.80 0.44 10.18 Sep 2003 1.69 2.95 -1.26 1.82 -0.13 1.54 0.15 Dec 2003 7.72 7.82 -0.10 1.82 5.90 0.24 7.48 Mar 2004 3.32 2.65 0.67 1.82 1.50 2.35 0.97 Jun 2004 -0.32 -0.40 0.08 1.82 -2.14 1.95 -2.27 Sep 2004 2.36 0.29 2.07 1.82 0.54 0.84 1.52 Dec 2004 8.15 6.85 1.30 1.82 6.33 0.94 7.21 Mar 2005 -0.73 -1.30 0.57 1.82 -2.55 2.35 -3.08 Returns for periods exceeding one year are annualized. (Incept to 6/30/97 50-40-10}{7/1/97-12/31/97 50-40-10}(1/1/98-9/30/98 55-40-5 x(10/1/98-12/31/98 50-40-10}(1/1/99- 6/30/00 50-10-35-5}(7/1/00-X30-03 34 Lakeland Firefighters' Supplemental Pension Plan Quarterly Comparison Analysis (%) Period Ending Fund Policy Dill Nominal 7.50% Diff CPI + 3% Dill Jun 2005 2.99 2.30 0.69 1.82 1.17 1.44 1.55 Sep 2005 4.02 2.75 1.27 1.82 2.20 2.96 1.06 Dec 2005 1.47 1.70 -0.23 1.82 -0.35 -0.26 1.73 Incept. 8.87 7.95 0.92 7.50 1.37 5.41 3.46 Returns for periods exceeding one year are annualized. (Incept to 6/30/97 50-40-10}(7/1/97-12/31/97 50-40-10}(1/1!98-9/30/98 55-40-5 }(10/1/98-12/31/88 50-40-10}(1!1/99- 6/30/00 50-10-35-5}(7/1/00-8`30-03 35 r Lakeland Firefighters Supplemental 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 nsk taken. All measures are calculated for both the fund and the policy as well as the difference ' between the two. Up to four time periods are evaluated depending on the age of the fund. # Of Negative Qtrs/# Of Positive Qtrs: Number of negative quarters shows the number of quarters in which the return ' was less than zero, and the number of positive quarters is the number of quarterly returns which were greater or equal to zero. Batting Average: The batting average is a measure of consistency. It shows the percent of the quarters the fund has ' beaten the policy and the percent of the quarters the policy has beat the fund. A high average for the fund (e.g. over 50) is desirable, indicating the fund has beaten the policy frequently. ' Worst Quarter/Best Quarter/Range: The worst quarter is the lowest quarterly return experienced during the period, a measure of downside risk. The best quarter is the highest quarterly return, and the range is the difference of the high and low, and indicates dispersion. Standard Deviation: Standard deviation measures the total volatility of the fund, by measuring dispersion. Higher standard deviation indicates higher risk. If the quarterly or monthly returns are all the same the standard deviation will be ' zero. The more they vary from one another, the higher the standard deviation. Thus, it measures uncertainty, which is a measure of risk. ' Alpha/Beta/R-Squared: If the policy is appropriate, then the alpha should be positive, the beta close to one, and the r-squared should be high. Beta measures risk relative to the policy. A beta of 1 suggests risk equivalent to the policy. Higher betas indicate higher relative risk. A beta of 1.2 indicates 20% more risk than the policy. The alpha measures the ' return adjusting for beta. The higher the alpha, the better. R-squared measures the relationship between the policy and the fund. A high r-squared means the returns of the fund can largely be explained by movements of the policy. The higher the r-squared, the more reliable the alpha and the beta. R-squared may range from 0 to 100. Beta, alpha and ' r-squared are derived from regression analysis using the fund and policy returns as the dependent and independent variables respectively. Roughly, one would expect the fund's performance to equal the return of the policy multiplied by the beta plus the alpha. Sharpe RatlolTreynor 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 Traynor 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. ' 36 1 i Lakeland Firefighters' Supplemental Pension Plan Risk Measures ~3Yr ::::::::::::::::.::.:.~: ::..: ~usid:~ ~::::~F~ol ~ ~ : : ~ :::~::~:Dt~f~: # of Negattve Qtrs 3.00 3.00 0.00 # of Positive Qtrs 9.00 9.00 0.00 Batting Average 58.33 41.67 16.66 Worst Qtr -3.43 -1.80 -1.63 Best Qtr 10.62 11.77 -1.15 Range 14.05 13.57 0.48 Worst 4 Qtrs 7.91 5.35 2.56 Standard Deviation 7.07 6.16 0.91 Beta 1.07 1.00 0.07 Annualized Alpha 0.13 0.00 0.13 RSquared 0.87 1.00 -0.13 Sharpe Ratio 1.58 1.68 -0.10 Treynor Ratio 10.41 10.32 0.09 Tracking Error 2.56 0.00 2.56 Information Ratfo 0.32 :..,fir :::::::::: :::::::::::::::::: .~ :..............~.~.~.~.........~...~.. :: :. .. . .........~tsr~d: :::::;:::Pot)c::: : ~ ::;:::Miff:; # of Negattve Qtrs 7.oti i.oo o.oli # of Posittve Qtn3 13.00 13.00 0.00 Batting Average 55.00 45.00 10.00 Worst Qtr -10.03 -9.24 -0.79 Best Qtr 10.62 11.77 -1.15 Range 20.65 21.01 -0.36 Worst 4 Qtrs -12.62 -11.66 -0.96 Standard Deviation 8.36 9.00 -0.64 Beta 0.87 1.00 -0.13 Annualized Alpha 1.18 0.00 1.18 R-Squared 0.87 1.00 -0.13 Sharpe Ratto 0.32 0.18 0.14 Treynor Ratio 3.06 1.66 1.40 Tracking Error 3.24 0.00 3.24 Informatton Ratio 0.31 ............................ 9:~?~c::::::: :::: ......... .. ~::::~:~tiitil~: ............ ::~:::Piit~c~:: ............. ::~::::::~Qiff: # of Negative Qtrs 9.00 11.00 -2.00 # of Positve Qtrs 27.00 25.00 2.00 Batttng Average 50.00 50.00 0.00 Worst Qtr -10.03 -9.24 -0.79 Best Qtr 11.64 11.77 -0.13 Range 21.67 21.01 0.66 Worst 4 Qtrs -12.62 -15.38 2.76 Standard Deviation 9.07 9.48 -0.41 Beta 0.86 1.00 -0.14 Annualized Alpha 1.45 0.00 1.45 R-Squared 0.82 1.00 -0.18 Sharpe Ratio 0.53 0.41 0.12 Treynor Ratio 5.64 3.86 1.78 Tracking Error 4.07 0.00 4.07 Information Ratio 0.24 ............................ :tiic~pt :::::::~ ::::::::::::::: ............ :::~ : Fixrr~ii ~ ............ ~::: Po~~ : ........ ... ::Diff~: # of Negative Qtrs 9.00 11.00 -2.00 # of Positive Qtrs 30.00 28.00 2.00 Batting Average 48.72 51.28 -2.56 Worst Qtr -10.03 -9.24 -0.79 Best Qtr 11.64 11.77 -0.13 Range 21.67 21.01 0.66 Worst 4 Qtrs -12.62 -15.38 2.76 Standard Deviation 8.85 9.32 -0.47 Beta 0.86 1.00 -0.14 Annualized Alpha 1.45 0.00 1.45 R-Squared 0.82 1.00 -0.18 Sharpe Ratio 0.59 0.46 0.13 Treynor Ratio 6.03 4.27 1.76 Tracking Error 3.95 0.00 3.95 Information Ratio 0.23 ' (Incept to 6/30/97 50-40-10}{7/1/97-12/31/97 50-40-10}(1/1198-9/30/98 55-40-5 }(10/1/9&12/31/98 50-40-10}(1/1/9 6/30/00 50-10-35-5}(7/1/00-9-30-03 ' 37 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Lakeland Firefighters' Supplemental Pension Plan Return vs Risk through December 31, 2005 1 o.oo°i° 9.00% 8.00% n n u a 7.00% z e d R 6.00% e t u r n 5.00% 4.00% 3.00°/8.c ~ and ~ Rus3000 ~ LB Gov/Corp ~MSCI ~ 3 Mo TBill 0% 5.00% 1 0.00% 15.00% 20.00% 25.01 Risk (Annualized Std Dev) -~-- Policy I% (Incept to 6/30/97 50-40-10}(7/1/97-12/31/97 50-40-10}(1/1/9&9/30/98 55-40-5 }(10/1/9&12/31/98 50-40-10}(1/1/99- 6/30/00 50-10-35-5}(7/1/00-9-30-03 38 Lakeland Firefighters' Supplemental Pension Plan Return vs Risk through December 31, 2005 30.00% 25.00% 20.00% R e t 15.00% u r s 10.00% 5.00% 0.00°/8.~ 3 Years ~ MSCI Rus3000 L Gov/Corp 3MoTB'I 0% 5.00% 10.00% 15.00% 20.01 Risk (Annualized Std Dev) 8.00 /o 7.00% 6.00% e 5.00% t u 4.00% r s 3.00% 2.00% 1 00% 5 Years 0 5.00% 15.00% 25.00% 1% 0.00% 10.00% 20.00% Risk (Annualized Std Dev) 9 Years 10.00% 9.00% 8.00% e 7.00% t u 6.00% r n s 5.00% 4.00% 3 00% Fund Rus3000 LB Gov Corp ~ MSCI 3 Mo Bill 5.00% 15.00% 25.00% 0.00% 10.00% 20.00% Risk (Annualized Std Dev) Inception 10.00% 9.00% 8.00% e 7.00% t u 6.00% r n s 5.00% 4.00% 3.00% ALB G /Corp ~ and MSCI 3 Mo TBill Rus3000 Fund ~Rus3000 LB Go Corp ~ MSCI 3 Mo TBill 5.00% 15.00% 25.00% 0.00% 10.00% 20.00% Risk (Annualized Std Dev) --}-- Policy (Incept to 6/30/97 50-40-10}{7/1/97-12/31/97 50-40-10}(1/1/9&9/30188 55-40-5 }(10/1/9&12/31/98 50.40-10}(1/1/99- 6/30/00 50-10-35-5}(7/1/00-9-30-03 39 ' Lakeland Firefighters' Supplemental Pension Plan Policy: 03/31/1996-06/30/1997 50.00 S&P 500 40.00 Lehman Gov/Credit Bond 10.00 Citigroup Treasury Bill - 3 Month 07/01/1997-12/31/1997 50.00 Russell 1000 40.00 Lehman Gov/Credit Bond ' 10.00 Citigroup Treasury Bill - 3 Month 01/01/1998-09/30/1998 55.00 Russell 1000 40.00 Lehman Gov/Credit Bond 5.00 Citigroup Treasury Bill - 3 Month 10/01/1998-12/31/1998 50.00 Russell 1000 ' 40.00 Lehman Gov/Credit Bond 10.00 Citigroup Treasury Bill - 3 Month ' 01/01/1999-06/30/2000 50.00 Russell 1000 35.00 Lehman Gov/Credit Bond 10.00 MSCI EAFE ' 5.00 Citigroup Treasury Bill - 3 Month 07/01/2000-09/30/2003 40.00 Russell 1000 35.00 Lehman Gov/Credit Bond ' 10.00 Russe112000 Growth 10.00 MSCI EAFE 5.00 Citigroup Treasury Bill - 3 Month ' 10/01/2003-12/31/2005 50.00 Russell 3000 35.00 Lehman Gov/Credit Bond 10.00 MSCI EAFE ' 5.00 Citigroup Treasury Bill - 3 Month ' First Objective: 03/31/1996-12/31/2005 Annual Return of 7.50% Second Objective: 03/31/1996-12/31/2005 100.00 US Consumer Price Index ' + 3.00 annual adder Universe Data: 50% BLCC, 10% IE, 35% H QB, 5% CASH ' 03/31/1996-12/31/1997 40.00 High Quality Bond 50.00 Broad Large Cap Core 10.00 Government Money Market 01/01/1998-09/30/1998 40.00 High Quality Bond 55.00 Broad Large Cap Core 5.00 Government Money Market 10/01/1998-12/31/1998 40.00 High Quality Bond ' 50.00 Broad Large Cap Core 10.00 Government Money Market 01/01/1999-06/30/2000 35.00 High Quality Bond 40 Lakeland Firefighters' Supplemental Pension Plan 07/01 /2000-09/30/2003 10/01 /2003-12/31 /2005 50.00 Broad Large Cap Core 10.00 International Equity 5.00 Government Money Market 35.00 High Quality Bond 40.00 Broad Large Cap Core 10.00 Broad Small Cap Growth 10.00 International Equity 5.00 Government Money Mazket 35.00 High Quality Bond 50.00 Broad Large Cap Core 10.00 International Equity 5.00 Government Money Market 41 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Bogtiahn Consulting, LLC. PORTFOLIO APPRAISAL Lakeland Firefighters' Westwood Mgm~ Corp. December 31, 2005 (Excluding Reinvested Divs.) Unit Total Market Pct. Quantity Security Cost Cost Price Value Gain/I.oss Assets DOMESTIC EQUITIES Mutual Funds Large Cap 4,076.270 Westwood Trust 387.36 1,578,978.85 522.91 2,131,527.54 552,548.69 14.6 LargeCap F1md Mid Cap 6,020.508 Westwood Trust 200.83 1,209,123.32 311.44 1,875,041.40 665,918.08 12.9 SMidCap Fund 2,788,102.17 4,006,568.94 1,218,466.77 27.5 Multi Cap Growth Specialty F.q. 22,922.901 Westwood Trust 50.83 1,165,223.81 62.42 1,430,946.07 265,722.27 9.8 MultiCap Growth Fund 1,165,223.81 1,430,946.07 265,722.27 9.8 Income Fund Speciaty Eq. 10,471.127 Westwood Alternative 110.33 1,155,246.50 126.81 1,327,849.83 172,603.34 9.1 Real Income Fund 1,155,246.50 1,327,849.83 172,603.34 9.1 RE17' Specialty E9. 1,818.728 Westwood Trust RE1T 187.44 340,906.29 251.54 457,481.83 116,575.54 3.1 340,906.29 457,481.83 116,575.54 3.1 Small Cap Fund Small Cap 20,320.000 Ishares Tr Russell 2000 54.63 1,110,121.15 66.72 1,355,750.40 245,629.25 9.3 1,110,121.15 1,355,750.40 245,629.25 9.3 6,559,599.92 8,578,597.08 2,OL8,997.16 58.8 INTERNATIONAL EQUITIES Global Funds Foreign 13,020.204 Westwood International 94.89 1,235,543.91 111.59 1,452,941.51 217,397.60 10.0 Fund 1,235,543.91 1,452,941.51 217,397.60 10.0 1,235,543.91 1,452,941.51 217,397.60 10.0 FIXED INCOME Bond Funds 35,230.304 Westwood bond fund 122.32 4,309,546.52 120.00 4,227,530.83 -82,015.69 29.0 4,309,546.52 4,227,530.83 -82,015.69 29.0 4,309,546.52 4,227,530.83 -82,015.69 29.0 1 7r Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL Lakeland Firefighters' t Westwood Mgmi: Corp. December 31, 2005 ' (Facluding Reinvested Divs.) Unit Totsl Quantity Security Cost Cost _ CASH & EQUIV. ' Cash Accounts Cash & Equiv. Cash 2,316.49 ' Mone M rkets 2,316.49 y a 330,296 SEI Government Sec. 1.00 330,296.31 ' 330,296.31 332,612.80 TOTAL PORTFOLIO 12,437,303.15 ' 2 Price PM. Gain/Loss Assets 2,316.49 0.00 0.0 2,316.49 0.00 0.0 1.00 330,296.31 0.00 2.3 330,296.31 0.00 2.3 332,612.80 0.00 2.3 14,391,682.22 2,154,379.07 100.0 ~ _ _ _ _ __ ' Bogtialm Consulting, LLC. CONTRIBUTIONS/WITHDRAWALS Lakeland Firefighters' Westwood Mgm>t Corp. From 10-01-OS To 12-31-OS Tran Trade Settle Broker Code Date Date Security Amount Quantity Code Commission CONTRIBUTIONS ' 0.00 WITHDRAWALS ' 0.00 EXPENSE ACCOUNTS 0.00 ' AFTER FEE PERFORMANCE EXPENSE ACCOUNTS dp 10-17-05 10-17-05 Administration Fee 19,545.97 Quarterly management fet for 4th quarter 2005 19,545.97 ' PORTFOLIO NET TOTAL -19,545.97 EXPENSE ACCOUNTS PAID BY CLIENT ' 0.00 AFTER FEE PERFORMANCE EXPENSE ACCOUNTS PAID BY CLIENT ' 0.00 GRAND TOTAL -19,54597 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Bogdahn Consulting, LLC. INCOME AND EXPENSES Lakeland Firefighters' Westwood Mgmi: Corp. From 10-Ol-OS Through 12-31-OS Ex-Date Pay-Date Bond Funds 10-31-OS 10-31-OS Westwood bond fund 11-30-OS 11-30-OS Westwood bond fund 12-31-OS 12-31-OS Westwood bond fund Global Funds 10-31-OS 10-31-OS Westwood International Fund 11-30-OS 11-30-OS Westwood International Fund 12-31-OS 12-31-OS Westwood International Fund Mutual Funds 10-31-OS 10-31-OS Westwood Trust LargeCap Fund 10-31-OS 10-31-OS Westwood Trust SMidCap Fund I 1-30-OS 11-30-OS Westwood Trust LargeCap Fund 11-30-OS 11-30-OS Westwood Trust SMidCap Fund 12-31-OS 12-31-OS Westwood Trust LargeCap Fund 12-31-OS 12-31-OS Westwood Trust SMidCap Fund Money Markets 10-03-OS 10-03-OS SEI Government Sec. 11-O1-OS 11-O1-OS SEI Government Sec. 12-O1-OS 12-O1-OS SEI Government Sec. Multi Cap Growth 10-31-OS 10-31-OS Westwood Trust MultiCap Growth Fund 11-30-OS 11-30-OS Westwood Trust MultiCap Growth Fund 12-31-OS 12-31-OS Westwood Trust MultiCap Growth Fund Income Fund 10-31-OS 10-31-OS Westwood Alternative Real Income Fund 11-30-OS 11-30-OS Westwood Alternative Real Income Fund 12-31-OS 12-31-OS Westwood Alternative Real Income Fund REIT 10-31-OS 10-31-OS Westwood Trust REIT 11-30-OS 11-30-OS Westwood Trust REIT 14,820.72 14,525.24 14,428.07 43,774.03 2,503.72 1,384.41 2,792.30 6,680.43 2,499.07 2,682.14 4,566.03 3,944.27 5,878.23 699.01 747.11 285.35 574.01 1,514.32 2,373.68 7,440.34 6,604.37 8,426.70 22,471.41 1,563.08 1,698.91 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Bogdahn Consulting, LLC. INCOME AND EXPENSES Lakeland Firefighters' Westwood Mgm~ Corp. From 10-01-OS Through 12-31-OS Ex-Date Pay-Date 12-31-OS 12-31-OS Westwood Trust RETI' Small Cap Fund 12-29-OS 12-29-OS Ishares Tr Russell 2000 After Fee Performance Expense Accounts 10-17-OS 10-17-OS Administration Fee NET INCOME 2 Amount 5,302.36 5,302.36 90,997.97 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Bogdahn Consulting, LLC. PURCHASE AND SALE Lakeland Firefighters' Westwood Mgm1: Corp. From 10-O1-OS To 12-31-OS Trade Settle Date Date Quantity Security PURCFIASES 10-31-OS 11-O1-OS 11-30-OS 12-O1-OS 12-31-OS 01-02-06 8,384 SEI Government Sec. 37,140 SEI Government Sec. 43,157 SEI Government Sec. Unit Price Amount 1.00 8,384.36 1.00 37,139.82 1.00 43,157.30 88,681.48 Bogdahn Consulting, LLC. DATE TO DATE GAINS AND LOSSES ' Lakeland Firefighters' Westwood Mgm>t: Corp. From 09-30-OS to 12-31-OS 09-30-05 Additions 12-31-05 12-31-05 Security Msrket Value Withdrawals Market Value Cost Basis ' Bond Funds Westwood bond fund 4,242,549.50 -43,774.03 4,227,530.83 4,309,546.52 ' 4,242,549.50 4,227,530.83 4,309,546.52 Bond Funds Total 4,242,549.50 4,227,530.83 4,309,546.52 ' Cash Accounts Cash & Fquiv. Cash 0.00 21,862.46 2,316.49 2,316.49 ' 0.00 2,316.49 2,316.49 Cash Accounts Total 0.00 2,316.49 2,316.49 ' Global Fuads Foreign ' Westwood International Fund 1,389,516.19 -6,680.43 1,452,941.51 1,235,543.91 1,389,516.19 l ,452,941.51 1,23 5,543.91 ' Global Funds Total Mutual Funds 1,389,516.19 1,452,941.51 1,235,543.91 Large Cap WestwoodTnut 2,102,215.49 -12,943.33 2,131,527.54 1,578,978.85 ' CargeCap Fund 2,102,215.49 2,131,527.54 1,578,978.85 Mid Cap ' WestwoodTrvst 1,861,409.76 -8,417.79 1,875,041.40 1,209,123.32 SMidCap Fund 1,861,409.76 1,875,041.40 1,209,123.32 ' Mutual Funds Total 3 963 625 26 4 006 568 94 , , . , , . 2,788,102.17 Money Markets ' SEI Government Sec. 241,614.83 86,392.68 330,296.31 330,296.31 241,614.83 330,296.31 330,296.31 ' Money Mazkets Total 241,614.83 330,296.31 330,296.31 ' 1 Realized Gain or Loss Unrealized Gain or Loss Cost Market Cost Msrket 0.00 0.00 -82,015.69 -15,018.68 0.00 0.00 -82,015.69 -15,018.68 0.00 0.00 -82,015.69 -15,018.68 0.00 0.00 217,397.60 63,425.32 0.00 0.00 217,397.60 63,425.32 0.00 0.00 217,397.60 63,425.32 000 0.00 552,548.69 29,312.05 0.00 0.00 552,548.69 29,312.05 0.00 0.00 665,918.08 13,631.63 0.00 0.00 665,918.08 13,631.63 0.00 0.00 1,218,466.77 42,943.68 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 _ _ _ _ -~. - 1 ' Bogdahn Consulting, LLC. DATE TO DATE GAINS AND LOSSES ' Lakeland Firefighters' Westwood Mgm~ Corp. From 09-30-OS to 12-31-OS 1 09-30-05 Additions 12-31-05 12-31-05 Security Market Value Withdrawals Market Value Cost Basis ' Multi Cs Growth p Specialty E9. Westwood Trust 1,378,853.78 -2,373.68 1,430,946.07 1,165,223.81 ' MultiCap Growth Fund 1,378,853.78 1,430,946.07 1,165,223.81 ' Multi Cap Gro Total 1,378,853.78 1,430,946.07 1,165,223.81 Income Fund Specialty Eq. ' Westwood Alternative 1,359,798.29 -22,471.41 1,327,849.83 1,155,246.50 Real Income Fund i ,359,798.29 I ,327,849.83 1,155,246.50 ' Income Fund Total 1,359,798.29 1,327,849.83 I ,155,246.50 REIT ' Specialty E4. Westwood Trust REIT 455,883.35 -6,292.11 457,481.83 340,906.29 455,883.35 457,481.83 340,906.29 ' RE17' Total 455,883.35 457,481.83 340,906.29 Small Csp Fund ' Smap Cap Lshares Tr Russe112000 1,349,044.80 -5,302.36 1,355,750.40 1,110,121.15 I ,349,044.80 1,355,750.40 1,110,121.15 ' Small Cap Fun Total 1,349,044.80 1,355,750.40 1,110,121.!5 TOTAL PORTFOLIO 14,380,886.00 14,591,682.22 12,437,303.15 1 ' 2 1 Realized Gain or Loss Unrealized Gain or Loss Cost Market Cost Market 0.00 0.00 265,722.27 52,092.29 0.00 0.00 265,722.27 52,092.29 0.00 0.00 265,722.27 52,092.29 0.00 0.00 172,603.34 -31,948.45 0.00 0.00 172,603.34 -31,948.45 0.00 0.00 172,603.34 -31,948.45 0.00 0.00 116,575.54 1,598.48 0.00 0.00 116,575.54 1,598.48 0.00 0.00 116,575.54 1,598.48 0.00 0.00 245,629.25 6,705.60 0.00 0.00 245,629.25 6,705.60 0.00 0.00 245,629.25 6,705.60 0.00 0.00 2,154,379.07 119,798.24 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Performance Measurement Sample Report #2 BOGDAHN CONSULTING, LLC. 1 1 1 1 ' PENSION FUND ' December Quarter 2005 Investment Performance Report 1 l Dave West, CFA ' Bogdahn Consulting, LLC. 340 West Central Ave., Suite 300 Winter Haven, Florida 33880 863.293.8289 ' mike@bogdahnconsulting.com 1 1 r_ SUMMARY and COMMENTS Market Environment Stock markets generally were strong during the fourth-quarter, though they dropped sharply during the short week between Christmas and New Year's. Overall, the S&P 500 gained 2% during the three-month period; S&P mid-caps were up 3%, but S&P small-caps only posted 0.4% returns. Bonds rose about %z% across the maturity spectrtun. Since January first, stocks have see-sawed --- first recovering fmal-week losses and then losing again during the past week. Bonds have held about even. Total Fund and Manager Performance In this setting, the Investment Fund gained nearly 2% during the past quarter, which was ahead of the Policy Index. For the most recent seven months of the current fiscal year through 12-31, the net return was 5%. Stock managers' returns were mixed. Wells's returns for the year were excellent against their Growth benchmark range, while Trusco's returns were poor against their Value range. Morgan's mid /small-cap fund did well against its index goal. On a combined basis, equities were ahead of the S&P 500 during the past quarter and year 2005 due to Wells and mid/small-caps. Morgan's bonds were consistent with a 50:50 mix of their intermediate and full-core benchmark, while J-for-Jobs was above the index for Commercial Mortgages. Build Indiana has posted strong gains during 2005, after the 11 %s% loss last year. Asset Allocation The stock allocation on December 31St was 64%, including the 3% in the Building Fund of XXX. Comments Trusco's relatively-poor returns are noted above --- they have not met their index targets since calendar-year 2001. At the July meeting, they explained that their "high-quality value" approach has kept them out ofhigh-performing oils and utilities which they consider overvalued, and they don't intend to change that approach. However, our patience is being severely tested; and the burden of proof to maintain confidence is on them. They are scheduled to appear at our January meeting. Suggestions for further diversification of the Total Fund, as well as potential replacements for Trusco, will be made at the January meeting for consideration by the Trustees. DW 20`'' January, 2006 1 _ __ _ 1 ' PERFORMANCE 1 C The Pension Fund is adefined-benefit plan. The Fund's performance goals are to match or exceed the current actuarial rate of 7% (plus approximately 0.3% for administrative expenses), the inflation rate, and a Policy Index target based upon weightings in the S&P Index for stocks and the Lehman Brothers Aggregate Index for bonds. Current weightings, based upon the past 80 years of stock and bond performance, should produce returns over time in excess of 8%. The Fund operates on a May 31S` Fiscal Year. Rates of Return (% Returns. Net of Manasement Fees 2005 Trailing Periods 4Q 3~ ~ 1~ YTD 2004 1 ~ 2vrs 3yrs 4yrs Svrs Total Fund 1.7 2.4 2.5 -1.4 5.3 9.0 5.3 7.1 9.7 5.1 2.9 Policy Index 1.4 1.7 2.1 -1.4 3.8 8.0 3.8 5.9 9.6 4.9 3.5 S&P 500 Growth 1.3 2.3 1.1 -3.5 1.1 7.0 1.1 4.0 11.2 - 0.3 -3.7 Wells (Strong) Capital 2.3 6.4 5.8 -4.3 10.1 15.9 10.1 13.0 --- --- --- Russell 1000 Growth 3.0 4.0 2.5 -4.1 5.3 6.3 5.3 5.8 13.2 1.1 -3.6 S&P 500 Value 2.9 4.8 1.6 -0.8 8.7 15.0 8.7 11.8 17.7 8.0 4.5 Trusco 2.4 1.9 -0.6 0.0 3.8 15.1 3.8 9.3 13.9 5.8 4.4 Russell 1000 Value 1.3 3.9 1.7 0.1 7.1 16.5 7.1 11.7 17.5 8.2 5.3 Morgan MC / SC 1.8 4.9 4.5 -1.4 10.1 17.1 10.1 13.5 19.9 --- --- S&P Mid / Sm Index 1.9 5.1 4.1 -1.2 10.1 19.5 10.1 14.7 21.8 11.4 9.7 UA S&P Fund 2.1 3.6 1.3 -2.2 4.8 10.8 4.8 7.7 14.3 3.8 --- Combined Stocks 2.2 4.2 2.5 -2.1 6.8 14.0 6.8 10.3 15.1 4.2 -0.3 S&P 500 Index 2.1 3.6 1.4 -2.2 4.9 10.9 4.9 7.9 14.4 3.9 0.5 Morgan Bond Mix 0.5 -0.5 3.0 -0.7 2.2 4.1 2.2 3.1 3.5 5.0 5.9 50:50 Comb. Index 0.6 -0.5 2.7 -0.5 2.2 4.1 2.2 3.1 3.4 5.0 5.7 LBA Index 0.6 -0.7 3.0 -0.5 2.4 4.3 2.4 3.4 3.6 5.2 5.9 LB Interm. Index 0.6 -0.4 2.4 -0.6 2.0 3.8 2.0 2.9 3.2 4.7 5.5 J-for-Jobs (CMBS) 1.3 1.0 1.9 0.8 5.0 4.2 5.0 4.6 4.6 5.8 6.3 CMBS Index 0.5 -1.0 3.2 -0.8 1.8 4.1 1.8 3.0 3.5 6.4 7.0 Build Fund of Indiana 3.9 1.7 4.1 1.0 11.0 -11.5 11.0 - 0.9 --- --- --- Build Fund RORs are from their Valuations; no meaningful benchmark exists for RE financi ng opportunities in Indiana. Past Fiscal-Year Returns (Net): FYE May 97 13.5%; providing + 6.5 above 7% Actuarial Rate FYE May 98 18.8 +11.8 " FYE May 99 10.9 + 3.9 " FYE May 00 7.5 + 0.5 " FYE May O1 - 3.4 - 10.4 below " FYE May 02 - 5.8 - 12.8 below " FYE May 03 1.9 - 5.1 below " FYE May 04 10.0 + 3.0 above " FYE May OS 7.4 + 0.4 above " Current FY 7 months through 12-31 4.9 2 ' Annual Fees: Basis-Pts. Annual Amount Wells (Strong) 80 0.8% $ 66,000 for $ 8 MM Trusco 7s 0.8 66,000 7 Morgan Mid- /Small-Cap s7 0.6 8,000 2 UA S&P Index Fund 6 0 1 2,000 4 ' Combined Equities 62 _ 0.6 130,000 21 Morgan Bonds 40 0.4 44,000 11 J for Jobs 7s Build Fund of XXX 0~8 13,000 2 1 INVESTMENTS s4 O.s°% $187,000 for $34 MM Custody for Wells s + transactions $ 6,000 estimated @ $10 per trade ' CONTRIBUTORS TO "INCOME p lus CAPITAL GAINS" (in Millions of Dollars) ' Due to Managers Income plus Due to versus their Indices Capital Gains Target Indices (Including Fees) ' 2001 $ (1.660) MM $ (1.264) MM $ (0.396) $MM negative 2002 (2.187) (1.942) (0.245) negative 2003 4.329 4.844 (0.514) negative ' 2004 2.722 2.547 0.175 positive 2005 ---12 months YTD throueh 12-31-OS ' Total 1.926 Wells (Strong) 0.822 1.516 0.341 0.410 positive 0.481 significant + Trusco 0.326 0.486 (0.160) significant - Morgan MidCap /SmallCap 0.142 0.140 0.002 UA S&P Fund 0.171 0.173 0.001 Combined Equities 1.460 1.138 0.322 Morgan Bonds 0.271 0.248 0.023 ' J for Jobs (vs. CMBS Index) 0.096 0.031 0.065 Build Fund of Indiana 0.099 0.099 --- COMMISSIONS: Separately-Managed Portfolios only ' Zoos Current Year Quarter to-Date 2004 ' # ofAgency Shares Traded 166,738 843,407 699,546 $ Commissions -Wells (Strong) $ 2,941 4.Oc $ 18,029 4.1c $ 31,430 4.sc - Trusco 3,366 4_1 17.866 4_4 3.024 4.2 ' -TOTAL $ 6,307 4.Oc 35,896 4.3c $ 34,464 4.sc Pensions and Investments (11 July 2006; p. 8) reported that the institutional average is 4.1 cents per share. ' 3 1 1 1 1 1 1 1 1 1 1 1 PORTFOLIO CHARACTERISTICS AT THE END OF LATEST QUARTER Wells (formerly Strong) Capital Management is a Growth manager, often mixing smaller-capitalization companies in their Large Cap portfolio. Tom Pence is the lead portfolio manager, with client servicing provided by Virgil Barber [Indianapolis]. Trusco (formerly Sun Trust) is a Value manager through their "Value Income" pooled fund. Like Strong, they often mix smaller-capitalization companies in their Large Cap portfolio. Mills ltiddick is the key portfolio manager, with client servicing provided by Bill Tarry [Orlando]. Wells (Strong) Trusco S&P 500 Growth Value Index Cash Reserves 2 % 5 % --- Company Size $ 56 B $ 56 B $ 92 Billion Dividend Rate 0.7 % 2.6 % 2.0 P/E Ratio 27 x 15 x 19 x Number of Issues 50 82 500 Max. Corp. Concentration 4.9 % 2.2 [7.5% maximum concentration allowed throu gh market movement] Growth managers typically have lower dividends a nd higher P/Es; Valu e the opposite EQUITY STYLE MIX SUGGESTED BY CORRELATIONS WITI3 PAST INDEX RETURNS LargeCap Growth LareeCan Value Mid/Small Growth Mid/Small Value Growth Value Wells (Strong) 67 % 14 % 19 % 0 % 86 % 14 Trusco Value 6 69 0 25 6 94 Morgan Mid /Small 0 0 63 37 63 37 UA S&P Index 50 50 0 0 50 50 Combined Equities 37 39 12 12 49 51 Combined LC 76% Combined MC / SC 24% 48% 52% These calculations are not perfect measures, but do provide useful indications of style. ' Morgan's (formerly Bank One) overall bond portfolio is a somewhat equal mix of their Intermediate and whole- market "Core" mutual funds managed in Columbus, OH, the mix of which should be more conservative than the ' LBA Index. The client service officer is Fran Brezette [Indianapolis]. Morgan LBA Characteristics Sector/Issuer (Bk 1) Index Moan LBA Index Short-Term 1 % 0 % Duration (% Change)* na 4.6 Treasuries/Agencies 45 Yield 5 % 5 Mortgage Backed 35 Number of Issues na 6,453 ' U.S. Credits & Foreign - 20 Asset Backed 0 100 % 100 ' * Duration is the best single measure of a bond portfolio's sensitivity to interest rate swings --- which, other than the fear of default, is the only factor which drives bond prices either up or down --- and estimates the price change in the portfolio 's bonds when interest rates rise or fall by 100 basis points (1 %). in the opposite direction. 1 4 1 ASSET ALLOCATION (excludes Checking Accounts) E uities Wells (Strong) LCG Equities Trusco (SunTrust) LCV Equities MidCap / SmallCap Equities UA S&P Index Equities Build Fund of Indiana [lZE Financing] Combined Equities Fixed Income Morgan (Banc One) Bonds J-for-Jobs (Comm'1Mnrtgage-Backed) 9-30-OS 12-31-OS Dollars % Dollars $ 8,125,455 23.7% $ 8,324,450 24.2% 7,303,989 21.3 7,480,410 21.7 1,490,053 4.4 1,517,560 4.4 3,619,249 10.6 3,693,941 10.7 961,065 2.8 998,552 2.9 21,499,811 62.8 22,014,913 63.9 The Policy range for the equity allocation is 55% to 65% 10,978,659 32.1 1,731,381 5.1 TOTAL PENSION INVESTMENTS $ 34,209,851 100.0% 10,682,252 31.0 1,754,368 5.1 $ 34,451,533 100.0% CHANGES IN MARKET VALUE OF THE INVESTMENT PORTFOLIO (excludes Checking Account) Beginning Cash Income & Ending Net Withdrawals Mkt.Value In / Out Capital Gains Mkt.Value % of Begin. MV 1995 17,693,288 na na 21,405,948 --- 1996 21,405,948 na na 23,634,795 --- 1997 23,634,795 ( 416,848) 4,281,000 27,498,947 1.8 1998 27,498,947 ( 723,206) 4,848,176 31,623,917 2.6 1999 31,623,917 ( 642,065) 4,462,285 35,444,137 2.0 2000 35,444,137 (1,070,864) ( 562,712) 33,810,561 3.0 2001 33,810,561 ( 828,497) (1,659,842) 31,322,222 2.5 2002 31,322,222 ( 958,038) (2,187,282) 28,176,902 3.1 2003 28,176,902 ( 676,945) 4,330,505 31,830,462 2.4 2004 31,830,462 ( 964,622) 3,000,259 33,866,099 3.0 1Q OS 33,866,099 ( 355,787) ( 430,343) 33,079,969 1.1 2Q OS 33,079,969 ( 305,534) 873,978 33,648,413 0.9 3Q OS 33,648,413 ( 297,619) 859,057 34,209,851 0.9 4Q OS 34,209,851 ( 379,698) 621,380 34,451,533 1_1 (1,338,638) 1,924,072 4.0 5 1 Memorandum Date: January 31, 2006 To: Sample Retirement Plan Committee Subject: Investment Performance Review: Fourth Quarter 2005 Investments: The following fund had a variance per the investment policy statement: - VanQUard Windsor II: On January 3, 2006, the boazd of trustees for the fund announced they were adding another sub-advisor to manage the fund. Armstrong Shaw will bring the total number of sub-advisors to six. Vanguard does not anticipate the change will have material impact the fund's expense ratio. Additionally, Vanguard will initially allocate a portion of the fund's cash position (approximately 4%) to Armstrong Shaw. The new manager's portfolio will be fairly concentrated with between 25 and 40 securities and will focus on companies that generate free cash flow and are selling at 70% or less of their intrinsic value. Founded in 1984, Armstrong Shaw is an employee-owned firm located in New Canaan, Connecticut. The MOT'IIlIIQStar Stewardship Grade This Grade evaluates a fund on five criteria (regulatory issues, board quality, manager incentives, fees, and corporate culture). A study by two professors at Binghamton University (SUNS that indicated that there is a relationship between mutual fund governance and the performance of the mutual fund. Based on the Morningstar Stewazdship Grades, they concluded that Boazd Quality was the most important criterion. We have included the written evaluations from Morningstar for the funds on the menu that they have been "graded". In the table bebw, we have summarized the fund's overall grade (A to F) and the Board Quality evaluation (Excellent to Very Poor). Stewardship Board Date of Grade Quality Evaiuatfon --_ ___ Vanguard Windsor II - -- 06/18/04 In our opinion, fund board grades of "C" (Fair) or below raise negative questions that serve as important demerits when a fund is on probation for other reasons. SAMPLE RETIREMENT PLAN INVESTMENT PERFORMANCE REVIEW FOURTH QUARTER 2005 MUTUAL FUNDS Policy Category 5-Yr 5-Yr 5-Yr Style Manager(s) Qtr 5-Yr Total Sharpe Worm Alpha In Plan Drift Change Expenses Returns Return Ratio Ratio Statistic Other Date (X.A.1) (X.A.2) (X.A.3) (X.A.4) (X.A.~ (X.A.t7 (X.A.~ (X.A.'n (X.A.8) Vanguard Windsor II 1/04 • O • • • • • • • Fund is meeting criteria • Fund is outside criteria and needs to be monitored ~ Fund is candidate for replacement Data is not available Vanguard Windsor II Fourth Quarter 2005 Trailing Rehrrtia Perbds Endrg Deoartber 30.2005 m 0 • N .~ J SC Q O f- 1 D 1 Yr 2 Yrs 3 Yrs 4 Net Assets, Manager Tenure and E~goenses Net Awls $MNt Turnover Ratio 28867.49 28.00 ^ Sfi m 25M Percentile ^25fi Percentile ti) Medan O Medan ro 75fi Percenhe ^ 75fi m 95fi Percentile • Vanguard WmASa II ~ Russe111000 Value Percentile Peer Group Rank -Large Cap Value Peer Group 1 Q 2 Q 1 Yr 2 Yrs 3 Yrs 4 Yrs 5 Yrs Varx,}rard Wrldsor II 91 73 30 13 13 11 21 FhlsseB 1000 Value 63 48 29 19 19 11 27 Trailing Returns 1 Q 2 Q 1 Yr 2 Yrs 3 Yrs 4 Yrs 5 Yrs Vanguard Wndsor II 0.06 4.09 7.01 12.52 18.09 8.17 5.75 fhsse11000 Value 127 520 7.05 11.68 17.49 8.19 528 llriverse(5%) 3.81 8.96 11.41 13.96 20.11 9.43 8.66 lhtiverse(25%) 228 6.46 7.8E 11.05 16.81 7.09 5.44 ~~~) 1.62 5.12 5.4E 927 15.05 5.82 3.86 ~%) 0.84 4.03 3.8C 7.62 13.81 4.31 2.11 Total Number of Holdings 281.00 Manager Tenure 12b-1 Qmlent Ratio 21.00 N4 0.34 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ I~ ~ ~ ~ ~ ~ ~ Vanguard Windsor II Fourth Quarter 2005 Quarterly Rolling Performance '~^~`'' ~~' 12 Month Rolling Performance Jar}OU - Deo05 a 0 9 m ~ r D m a' N m N_ ~ O r J C ¢ ~ 0 ~ - AAar-05 ,1tn05 SeQ05 Dec()5 DeG00 .Mh01 Dec-01 ,AnL12 DBO~02 Jtil03 DeC-00 Jul(M DBa04 JIrTOG DBGOS 3 Year Rolling Performance J r00 D -05 5 Year Rolling PerForrnance a - eo ~~ _ ~~ ~ ~ c a m 1 ~ ~ v m N m ~ v 0 N A 7 C C a _ N ~ C a O ~ H _~ O F- _~ .hhQ3 ~ .AIl~ ~Bf,-(i+{ ,ANUS DBp05 DeG04 Wlar-05 ,A1F05 $~ ~p~ ^ Slh b 2511 Pacen9e ^ 251h Peroerrde b Medra~ ^ Me[ian b 751h PeroenEle ^ 751i b 951h P~oenae . Vargtad VVSX190f II x Id199e11000 Value Gemed ~vitl~ MPf SNIuaT" (Dea Mamina~l Vanguard Windsor II Fourth Quarter 2005 Asset Loadings Jan-00 - Dec.-05 1 0 r m Morningstar GatecJaY Large Value 1403 2403 30103 40103 1404 26104 30104 4404 1(105 2405 3405 4(405 Equity Si)Ae Box Large-Value Asset Loading % -Last 3 Years Vanguard Windsor II (`ash L9 Value Lg Growth Sm Value Sm Grvwlh EAFE 6.45 73.96 0.00 4.19 0.00 15.40 5.51 7923 0.00 220 0.00 13.06 7.67 7721 0.00 0.00 0.00 15.12 9.36 76.42 0.00 0.00 0.00 1422 7.31 79.48 0.00 0.00 0.00 1321 8.90 7229 4.08 023 0.00 14.51 12.57 6241 4.64 4.18 0.00 16.19 12.39 67.33 125 6.10 0.00 12.9Ci 16.00 66.57 0.00 6.40 0.00 11.03 15.77 69.88 0.00 423 0.00 10.11 13.48 72.88 0.00 3.48 0.00 10.16 12.44 73.45 0.00 3.28 0.00 10.83 P/E Ratio PIB Ratio 15.31 2.40 ~an-uu ueotlu t)e(}U1 t)eG(71 l7eC{l3 Dea04 DeG45 ^ EAFE ^ Sm Growth ^ Sm Value ^ Lg Growth ^ Lg Value ^ C,astt ~ ~ ~ ~ i i ~ a• ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Vanguard Windsor II Fourth Quarter 2005 upMarkat capnas Reno: RoNng as mono, wkleow o, ~^^^~~ m ~~^^~~rrlrl.lri n U ~ f ~ and Oeo02 dn-03 Deo03 ,Aii-04 Deo04 .Aii(~ Deo05 Dovrr-Markat Caphae Reno: Roltlg 36 month wlrWow .talao-oeoas ~ .~ o~ z ~ m n U 3 o° oeao2 ~ oeo~i .AiiOa Up Market/Down Martcet Capture Dero4 .kri-06 oeros WMd(~Y~e oonnMdC,ap1ie Ratio. % Ratio, ~6 Varx,}rard YVFrdsor II 95.10 76.68 Fhsse11000 Value 100.00 100.00 Univierse(5%) 114.31 133.11 UnNerse(2,5%) 9926 116.56 ~~'~() 9¢.08 105.07 ~°~) 85.97 96.07 ~~~~%) 75.56 78.85 Sortino Ratio Var~~ard Wfld9pr II FhsseG 1000 Value Universe(5%) Uri~etse(25%) lkr~erse(75%) Utmrerse(96%) Sortino Ratio Vanguard Wndsa' II FhaseM 1000 Value Uriverse(5%) Uriverse(25%) lhiverse(Medan) ~%) Urrverse(96%) 3 Yts 5.40 4.39 3.67 3.47 3.38 3.29 3.23 5 Yrs 0.40 0.34 0.56 0.31 0.17 -0.01 -0.23 ^ 5th b 25rt1 Pacenae ^ 25R1 Pbroaryle b tule6arl p A~ledan b 7561 P~aroarlfie ^ 75R1 b 95Q1 P~eroanMe ~ Total cored witli n81 swb.n m.~,~ ti....:.,e....,.,, Vanguard Windsor II Fourth Quarter 2005 Shape Ratio: RolNng as month window ~~ - ~o~ Alpha: RotRng 36 month wkdow 1 ' 1 JanaO - Dec'.05 1. 1 o ~• m 0. ~ m a~ e ~ n `m ~' n N -0 a - -~. oaoap .xha i Davos .l~oa oeaoa ,k,~ as oacos oeodz ,Anal Derail dnot Deoo4 kno5 Davos Shape Ratlo: Rolkg 60 month window . Alpl~ RottAg 60 month window 0.7 0 0 0 ~;, o. ~ a m e a `m L n - o. a - o - -0.~ Deooa Mar-05 .AnoS sep-05 Deo-05 Deoa4 Mar-05 .kno5 sepal Deo-05 Sharpe Ratio Alpha 3 Yrs 5 Yrs 3 Yrs 5 Yrs Vanguad Wr~dsor II 1.63 0.33 Vanguarcl Windsor II 1.37 0 66 Russe11000 Value 1.54 029 Russell 1000 Value 0.00 . 0 00 ~~''~~`~%) 1.64 0.51 UniVetse(5%) 1.85 . 3.38 ~'~(~%) 1.46 0.30 Urmrerse(25%) -0.19 0.39 U"^~() 1.32 0.18 Universe(Median) _1,57 _125 %) 120 0.06 Universe(75%) 2.70 292 Uni~etse(95%) 1.03 -0.05 Universe(95%) x.49 x.62 ^ SQi b 25th F'eioerdle ^ 251h Peroenlle b Nation ^ Median b 75th Pemense ^ 75th b 95th Peroentle ~ ShaipeF7afo Cteued wOh MPI Srylos^~ (Dau: Momie~ Vanguard Windsor II Fourth Quarter 2005 Performance vs. Risk Excess Retum Attribution e a ~ 1 p +~ .: P ~ ~ ~ N ~ RMy, r..~ m N_ ~ m 1 c C C Q f0 O F- ,• .1an01 Deo-01 Jrn02 Dao02 ,AiW3 Dec03 ,kr104 D eo04 ,kn-05 DeG05 0 2 4 6 8 10 12 14 ~ EXC2SS ~ SEieGti0r1 ~ TRTg Total Aml~afined StdDev, % RSciuaed, Infom~aGon Ratio, Downscle ~4 Tiad6g 6rar and Sel~CbiDn S grTignoe Large Cap Value Peer Group • Vanguard Windsor II ~.... ~«e ~.,~.MS.,.. .,.,...~... ....v~.... ~ Casa • Russell 1000 var~,adw.xsoru Value 93~ a1a a7a 338 x924 RraseN,o00vane 100AD N4 898 000 PN lkrivasr:(5%) 96,47 Q75 11.56 596 99 95 Sector Anaysis u*~sec25°~) 9633 ono 1037 , ass 98.39 x x x 9alAw H~dN~ AYE RYm x x x ~..~ x arm x wr.tr x ca.m. m~ri°~~ Mrfgw S~N e N e N x rnd,rw x x lkwase(Me6an) 9315 -0.39 951 382 88.64 0.97 4.96 2.10 °w r or ~ °r Ooad~ 1.53 1229 3.00 3.71 25.52 11.73 hY1~W Errpy Urla~ ~°~) 10.77 15.00 8.41 8394 -0.85 855 305 7Q?9 D~hrOe Uiverse(95%) 8401 -1.39 7B1 243 5559 2 IMormatlon Rdio: ROIWg 60 iT101kM \v1rldOMr 1 2 Ja~00-De°OS 1 VarguardWirMSa II 1 ^ 5h t° 25th PeroenU7e Q • 25h Percer~e m Medan A o Median m 75h Peoenhte ' ^ %SdMae ^ %HaW~ee • %Meda o %Telecortrnunicalias ~ • 75h t° 95h Percerm le ^ % Flealhcare ^ %Cmsuner Services • %Brsiness Services -` C %finanaal Services O %CaarmaGoods ^ %Indafiial MaleriaLs • %F_neg~ -1 ^ %Udlifies x w ^ Fxoess DeG 04 Mar-05 JuF05 SeP05 Dec95 C¢a1M wiM MPI SWhuTM lD°rw~ Mmrinaeadn ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ i Fund Monitoring Report Explanation Trailing Absolute Performance (Page 1 ~ 2) This section focuses on longer-term returns. It shows the cumulative time-weighted returns and percentile rankings for the last quarter, 1 year, 3 yeass, and 5 years. The returns for the fund, the applicable index and the universe percentiles aze displayed. A percentile ranking of 0 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. Page two illustrates prior reports to show performance trends II. Fund Size, Manager Tenure ~ Expenses (Page 1) Net Assets: The size of the fund. Rapidly escalating assets can disrupt successful performance. Turnover %: This is a measure of the fund's trading activity. The higher the % the greater is the implicit expense of the fund. Total number of holdings: The number of securities the fund owns. Too few (<20-30) can be too risky. Manager Tenure: The number of years the manager has been responsible for the fund. Longer is better. 12b-1 Fee: This figure is the maximum annual charge deducted from fund assets to pay for distribution and mazketing costs. Expense Ratio: This ratio represents the percentage of fund assets that is paid for operating expenses, management fees, and 12b-1 fees costs but excluding sales chazges (loads). Lower is better. III. Returns Based Style Analysis (Pages 3) Style Analysis Implications: The asset allocation decision accounts for the vast majority of investment performance. It far outweighs the importance of individual manager selection or market timing. However, for many investors, Returns Based Style Analysis (RBSA) is becoming recognized as a very important element in determining the asset allocation of a fund. RBSA refers to the determination of the weighting of types of investment styles, or asset classes. With respect to equities, this can involve the selection of small-capitalization, lazge-capitalization, value-oriented, or growth-oriented managers. For bonds, this can be based upon the selection of credit quality and maturity. International investments can be differentiated by geographic region, capitalization, etc. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 11~ ~ ~ RBSA can add a new dimension to investment decision malting and responsibility. The fiduciaries would be selecting individual fund managers based on their "fit" within a particular investment style. Manager Style Indices: The application of RBSA requires the measurement of historical returns for different styles of investment management. These Manager Style Indices (or Asset Classes) are usually unmanaged market capitalization-weighted indices. Some of the most widely-recognized Manager Style Indices used for the evaluation of U.S. equity managers are the Frank Russell Style Indices. IV. Style Statistics (Page 3) This is data captured from Morningstar to determine asset class holdings on a portfolio basis, both on a long and short-term basis. The Morningstar Category and Style Box is their value judgment about the style the fund is representing. V Up and down market capture ratios (Page 4) Up Market (in periods when indez returns are positive): This indicates the extent that the peer group and fund return exceeded the return of the index serving as a proxy for the "market" or asset class. A number greater than is 100 is preferred and indicates the fund outperformed the index during the all the periods when the index was positive over the specified timeframe. Down Market (in periods when index returns are negative): This indicates the extent that the peer group and fund return did not fall as much as the index. A number less than 100 is preferred and indicates the fund outperformed the index in down markets. Lower is better. VI Sortino Ratio (Page 4) Sortino Ratio: A risk adjusted performance measure that focuses on downside volatility instead of total volatility. The excess return above the risk free rate is divided by the fund's semi-standard deviation (volatility below zero). Higher is better. VII Sharpe Ratio (Page 5) Sharpe Ratio is an absolute measure of risk adjusted returns. It is a method of measuring excess return per unit of risk. The proxy for risk is standard deviation. Higher is better. VIII Alpha (Page 5) Alpha is a relative measure of risk adjusted return. Used as a `value-added" measure, Alpha is the excess return above the market index that the manager generated for a given level of market risk (beta). Higher is better. IX. Performance vs. Risk (Scatter Plot -Page 6) This is a visual depiction comparing the funds to other offerings in the peer group as well as the corresponding indexes we're using to compare performance. It measures the relationship of total return compared to risk expressed by standazd deviation. The intersect point is the risk and return, for the period measured, of the index we're measuring the fund against. The fund and any other index are then plotted on the graph relative to the index. It's desirable that the fund be in the "northwest quadrant". By being in the northwest quadrant, the fund would be exhibiting returns that are in excess of the index, but with lower risk X. Excess Return Attribution (Page 6) Excess Return: The difference between the funds return and the index return. A positive difference is better. Timing Return: The portion of the funds return attributable to the asset class weightings being different than the indexes. Selection Return: The portion of the funds return attributable to the security selection skills. It is desirable to have selection returns as high as possible. R Squared: Is a "goodness of fit" measure. It measures the amount of variability in the fund's performance is explained by the variability in the index returns based on a simple regression. Provides a measure of reliability in explaining the alpha and beta statistics of a fund. The higher the R- squazed the better. Information Ratio: This measures the excess return of a fund resulting from deviating from the index. It is calculated by dividing the annualized tracking en or into the excess return over the index. Higher is better. Annualized Semi-Standard Deviation (Downside Risk): This is a measure of the volatility of a fund's return below a minimum acceptable return, which in this case is zero. Smaller is better. Annualized Standard Deviation, Excess (Tracking Error): The standazd deviation of excess returns over the index. Smaller is better. Significance Level %, Selection: This is a measure of how statistically reliable (significant) the cumulative selection return (as described above) is as a measure of manager skill in selecting individual securities. A high number would indicate that the manager has been consistent in his selection skill (or lack thereof) and is an indicator of the likelihood of him doing so in the future. Higher is better. XI. Sector Weightings (Page 6) These are calculated for all funds based on the securities in the fund's most recent portfolio. 3 ~ Asset Allocation Review ~ Manager Review Reports 1 ' BOGDAHN CONSULTING, LLC. z ~`'i "_ ~ 'A , ~~' ~,, In~e~i~nt ~Q~sultin~ end FerfQrrn~n~e E~aluatiQn ~er~i~es - ~YY ~~ ~Cta-~~AI~N ~~~TStII~TTI~G~ LAC. ~w Target Asset Allocation Review: ~ Bogdahn Consulting, LLC. °, Target Asset Allocation Review: Efficient Frontier Curve For the 20-Year F~riod Ended 12131 /05 14 1 1 ~ ~ ~ ~ c . ~ c c Q 4 2 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Risk (Standard Deviation) Frontier • Aggregate Bond ~ Russell 1000 Value hdex • Russet/ 1000 Growth Index ~ Wilshire RE Index • FAFE • Russeu 2500 Value f NCRBF hdex ~ Russell 1000 ~ Russe112500 Growth c,m.a ~ rs, srym Z BOg'~II ~i0II8111t1IIg', j/J.J~i. ., ~. ~. Target Asset Allocation Review: correla Aggregate Bond 1 tion Matri x: For the 20-Year Period En ded 12/3 1/05 ,Russell 1000 Value 0.00 1 Russe111000 ! -0.05 0.93 1 Russell 1000 Growth ~ -0.08 0.79 0.96 1 Russell 2500 Growth -0.13 0.79 0.91 0.91 1 Russe I 12500 Va I ue -0.03 0.92 0.83 0.69 0.80 1 SAFE -0.02 0.69 0.72 0.67 0.66 0.60 1 Wilshire REIT Index ! 0.13 0.60 0.47 0.33 0.47 0.74 0.39 1 NCREIF Index -0.15 0.00 -0.03 -0.05 -0.08 -0.06 0.06 0.06 1' 3 Bogdahn Consulting, LLC. Correlation Matrix: For the 3-Year Period Ended 03/31/03 ~ ~ ~ ~ ~ 1' ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 7 Asset Allocation: Performance Opposites Sb1 ~~ ~4' Sb°~ Sb°~ °~~ °~~ °~~ ~~ ~`L ~`l' ~`~ ~`~ ~~` ~` ~`'' ~`'' ~`O ~ ~~ ~~ ~~ ~~ ~°' ~°' A~ A~ A~ A~ A`i' A~' A~ p'~ AR A~` ph 0 _, ~ , 1 2 3 4 5 6 -Russell 1000 Value TR 12 Period Percent Return -Russell 2000 Growth TR 12 Period Percent Return 4 Bogdahn Consulting, LLC. Yt ~ ~ International Equity vs. Domestic Equity: Currency Impact When the dollar devalues relative to other currencies, international stocks tend to out-perform domestic so.oo°io so.oo°i° 40.00% 20.00% 0.00% -20.00% -40.00% ~ 0 ~ 0 ~ ~ 0 ~ ~ ~ ~ 0 0 ~ ~ 0 ~ ~ 0 0 0 0 ~ 0 0 ~ ~ ~ 0 ~ 0 0 0 0 0 m w m m m m m co m m m m m m m m w m m m m m m m m m m m cD m m m m A A A O ~ A C~ A O O O A O A A A A A A A A A A A A A A A A n ~ A A A A V V V V V V V V V V OD 00 N W A ~ ~ O ~ ~ O ~p ~p ~p ~p ~p ~'p ~p ~p ~p O O O O O O -~ N W A Cn O V W CO O ~ N W A CTS O V O CO O --• N W A ^Excess Returns of International Stocks Vs. Domestic Stocks Excess Return Differential of Domestic Currency Vs. Foreign Currency 5 Bogdahn Consulting, LLC. ~. - ,._ i`~ ~~ .~ - Target Asset Allocation Review: Recommended Target Portfolio Comparison 4( ~% Recommended Target Portfolio Allocation „~~, 10% ~% ^ Russell 1000 Index ^ LBAB ^ 90-Day T Bill ~% ., .~ ^ Russell 1000 Growth Index o Russell 2500 Value ^ Wilshire REIT ^ Treasury Inflation-Protected 10% ^ Russell 1000 Value Index ^ MSCI EAFE ^ NCREIF ^ Lehman Intermediate Aggregate 6 BOgdSilll Ci0II61]ItlIIg', ~~i. Current Target Portfolio Allocation 5% Target Asset Allocation Review: Recommended Target Portfolio Comparison 3 Years Trailing ending 12/31/2005 5 Years Trailing ending 12/31/2005 16 14 12 N 10 a~ Q: ^ 10 - 8 6 4 8 N c a~ ~ 2 0 6 4 5 6 7 8 9 10 Standard Deviation -2 -4 9.0 Standard Deviation 7 Bogdahn Consulting, LLC. ~ ~ ~ ~ ~ i ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ .~ . Target Asset Allocation Review: Recommended Target Portfolio Comparison 9 8 7 ~ 4 ... a~ o! 3 2 1 0 -1 7 Years Trailing ending 12131/2005 ^ 6 5 8.5 9.0 9.5 10.0 10.5 Standard Deviation -8 -10 -12 G-- 9.8 10.0 10.2 10.4 Standard Deviation 0 Bear Market ending 03/31/2003 -2 -4 ~ -6 w a~ 8 BOg'~II COII8111t]IIg, I.l..ci. ~ ~ ~ ~ ~ ~ ~ i ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~. '- • .. Target Asset Allocation Review: Recommended Target Portfolio Comparison Returns Universe: Mobius Broad Balanced 50 40 30 20 10 0 -10 -20 2004 2002 ^ 5-25 %tile ^ 25-50 %tile • 55% R1/40%LBA/5%C ^ Recommended Target Portfolio (Core Stlt) - hdex 2000 1998 p 50-75 %tile ^ 75-95 %tile ^ Recommended Target Portfolio Core/Brd.Stlt. -Index 1996 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 Recommended Target Portfolio (Core Stlt) 7.17 14.26 26.18 -5.37 1.63 7.57 8.69 9.95 Recommended Target Portfolio Core/Brd.Stlt. 6.67 11.67 22.64 -8.94 -4.20 -0.10 13.71 17.04 55% R1/40%LBA/5%C 4.85 6.98 16.48 -10.96 -4.52 -1.18 13.30 17.67 20.33 14.54 ~ vciui na 9 BOg''t1,8~1II ~i0II8li1tlIIg', ~.~i. Luvb 2003 2001 1999 1997 ~; Target Asset Allocation Review: Recommended Target Portfolio Comparison Up-Market Ratio 140 120 100 80 60 40 20 0 7Yr Down-Market Ratio 70 60 50 40 30 20 10 0 7Yr Up-Market Ratio Down-Market ' Ratio ^ Recommended Target Fbrtfolio (Core Stit) - hdex 130.47 66.80 ^ Recomr~ended Target Portfolio Core/Brd.SUt. - hdex 119.91 93.11 • 55% R1/40%LBA/5%C 100.00 100.00 ^~ucn. ~l:170 RI/'4V70L~A/.7701+ Timeframe: 7 Years Trailing 10 Bogdahn Consulting, LLC.~ r ~ ~ ~ ~ ~ ~ ~ ~ i ~ ~ ~ ~ ~ ~ ~ ~ i ~___~ Target Asset Allocation Review: Recommended Target Portfolio Comparison Beta Alpha Sharpe Ratio Standard Deviation Universe: Mobius Broad Balanced Universe: Mobius Broad Balanced Universe: Mobius Broad Balanced Universe: Mobius Broad Balanced Index• 55%R1/40%LBA/5%C Index: 55%R1/40%LBA/5%C 1 1 1 1 1.4 1.2 1.0 0.8 0.6 10 8 6 4 2 0 1' 0.4 -2 7Yr 7Yr 7Yr 7Yr Ending 12/31/2005 Ending 12/31/2005 Ending 12/31/2005 lading 12/31/2005 11 Bogdahn Consulting, LLC. International Manager Review: 12 Bogdahn Consulting, LLC. International Manager Review: Performance: Correlation 5 Years Trailing ending 12/31 /2005 Data calculated using Quarterly returns I~hanset aid Inde~c ^ ^ ^ ^ ^ ^ ^ ^ ^ AXA Posai~sg by - F~banational Ec}ity - Goss Sme 1.00 Q99 Q:96 0:86 1.00 0.96 0.99 Q82 Q99 ^ L~Rinoe Floe Zcb- rtarr~onel E4ily - Qnss Sae 0:99 1.00 Q97 Q86 0:98 0.96 Q! 97 Q:78 Q96 0 Fishy ice, he - Fad ~ hstih~onel - Qoss Sae 0:96 0:97 1.00 0.86 0.96 0.96 0.94 Q.80 Q96 ^ Fneeciar~p Art - Freecbrnl-tar~e6oenl FtrrJ -Goss Sae Q:86 Q88 Q86 1.00 0:87 0.91 0.86 Q82 Q86 ^ She St CSI Adv - h6ar~ard Alpha-Goss Sae 1.00 Q9B Q96 Q$7 1.00 Q96 Q9B Q80 Q9B ^ Ter~Orn-Terple~nC~q~ed M~r1~5 6c-lBE4ity Qitposi~e- C~+oss Sae Q.9B Q98 Q96 Q91 0:96 1.00 Q97 Q81 Q9B ~stion CbAsset Amt - The Bosb~n Cbrrpa~y t~kareUarnl Core Ec}ity Fux! - ^ fit Sae Q99 0.97 Q94 Q86 Q99 Q:97 1.00 Q81 Q96 ^ Vltriwath I-~sa - W-1/ ttar~a~l E}ity - C3oss Sze 0.82 Q78 Q80 Q82 Q80 Q.81 Q81 1.00 Q82 • Ml~AFf Q99 Q.9B Q96 Q86 Q99 Q99 0.96 0:82 _ 1.00. ~ Trrefrare SYeersTra'ir~ TcpiG (Zrr~dfirn 13 Bogdahn Consulting, LLC. ~~ ~ ~ .~: International Manager Review: Alpha 1s 14 12 10 8 6 4 2 0 20 18 1s 14 12 10 8 6 4 2 0 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 so 70 so 50 40 30 20 10 0 5Yr Performance: Indez Relative Risk Stahshcs Benchmark: MSCI EAFE 5 Years Trailing ending 12/31 /2005 Data calculated using Quarterly returns Beta i~Squared 1"" 5Yr 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 5Yr Alpha Beta R-Squared Treynor Ratio Batting Average Information Ratio ~ AXA Rosenberg Inv -International Equity -Gross Size 3.00 0.96 98.37 5.84 70.00 1.04 ~ DePrince Race Zollo -International Equity -Gross Size 2.93 0.94 96.42 5.87 60.00 0.64 O Fisher Inv, Inc -Foreign Equity Institutional - Gross Size 5.42 0.92 92.99 8.65 65.00 0.89 ~ Freedom Cap Mgmt - Freedom International Fund -Gross Size 15.28 0.97 77.34 18.05 75.00 1.33 ~ State St GblAdv - InternationalAlpha -Gross Size 3.18 0.96 98.78 6.09 80.00 1.23 Templeton -Templeton Developed Markets Ex-US Equity Composite - ~ Gross Size 2.33 0.97 97.33 5.06 50.00 0.63 - Boston Co Asset Mgmt - The Boston Company International Core Equity Fund -Net Size 6.55 0.85 95.49 10.69 65.00 1 .16 ~ W entw orth Hauser - W HV International Equity -Gross Size 8.19 0.81 67.33 12.35 60.00 0.53 • MSCI EA FE 0.00 1 .00 100.00 2.62 100.00 Timeframe: 5 Years Trailing Index: MSCI EA FE 14 Bogdahn Consulting, LLC. Information Ratio Treynor Ratio Batting Average International Manager Review: Up-Market Ratio 180 160 140 120 100 8~ 60 40 20 0 90 80 70 60 50 40 30 20 10 0 5Yr '~;: Performance: Market Capture Ratios Benchmark: MSCI EAFE 5 Years Trailing ending 12/31/2005 Data calculated using Quarterly returns Down-Market Ratio 5Yr 1 1 0 1 1 m 1 Y `m d 80 - 60 ~ 40 20 00 80 60 40 20 50 60 70 80 90 100110120130140 150 Dow n-Market Ratin Up-Market Ratio Down-Market Ratio ^ AXA Rosenberg hvestment Management - hternational Equity -Gross Size 102.80 83.01 ^ DeR-ince, Race and Zollo hc. - hternational Equity -Gross Size 105.68 86.97 O Fsher hvestments - Foreign Equity hstitutional - Gross Size 111.71 77.12 ^ Freedom Capital Management, LLC - Freedom hternational Fund - Gross Size 160.62 63.71 ^ State Street Global Advisors - hternational Alpha - Gross Size 103.39 82.32 TempletoNFranklin Templeton hstitutional - Templeton Developed Markets Ex-US Equity Composite - ^ Gross Size 102.55 87.54 The Boston Company Asset Management, LLC -The Boston Company hternational Core Equity Fund - ^ Net Size 99.81 55.77 ^ Wentworth, Hauser & Violich - WHV hternational Equity -Gross Size 103.07 52.92 ~ MSq E'°~~ M J.,.. ~ u+IV r 100.00 100.00 vv~. IYNVI 1../11 L Timeframe: 5 Years Trailing 15 Bogdahn Consulting, LLC. ^. • ,, Performance: Return vs. Risk International Manager Review: 3 Years Trailing ending 12/31/2005 34 ^ -- 32 ^ 30 28 ^ ~, 26 24 22 20 18 16 14 13 14 15 16 17 18 19 20 Standard Deviation Benchmark: MSCI EAFE 3 Years Trailing and 5 Years Trailing ending 12/31 /2005 Data calculated using Quarterly returns 5 Years Trailing ending 12!3112005 25 20 ^ 15 10 ^ ~ 5 ~ 0 -5 -10 -15 17 18 19 20 21 22 23 24 Standard Deviation 3 r 5 r Returns Standard Deviation Returns Standard Deviation ^ AXA Rosenberg Inv -International Equity -Gross Size 26.26 16.73 8.00 19.93 ^ DePrince Race Zollo -hternational Equity -Gross Size 24.35 17.12 7.86 19.58 ^ Fisher hv, Inc -Foreign Equity Institutional -Gross Size 24.88 17.41 10.33 19.63 ^ Freedom Cap Mgmt -Freedom International Fund -Gross Size 32.88 17.47 20.15 22.79 ^ State St Gbl Adv -hternational Alpha -Gross Size 26.61 16.74 8.20 19.74 ^ Templeton -Templeton Developed Markets Ex-US Equity Composite -Gross Size 23.86 16.67 7.27 20.19 Boston Co Asset Mgmt -The Boston Company hternational Core Equity Fund - ^ Net Size 28.02 14.89 11.53 17.86 ^ Wentworth Hauser - WHV International Equity -Gross Size 33.36 13.88 12.49 20.39 • MSCI EA FE 24.18 16.81 4.94 20.50 16 Bogdahn Consulting, LLC. ~ ,;_.: ~ ~ ~~: -: International Manager Review: Returns 25 20 15 10 5 0 9 8 7 s 5 4 3 2 1 0 cv. 25 20 15 10 5 0 -1 -1 -Z -2 Performance: Risk Analysis Benchmark: MSCI EAFE 5 Years Trailing ending 12/31 /2005 Data calculated using Quarterly returns Standard Deviation Sharpe Ratio 5Yr o.e 0.7 o.s 0.5 0.4 0.3 0.2 0.1 0.0 0 -5 -10 -15 -20 -25 Fv~ Returns Standard Sharpe Negative Worst Worst4 ~ AXA Rosenberg Inv -International Equity -Gross Size Deviation Ratio puarters Quarter Quarters ~ De Prince Race Zollo -International Equity -Gross Size 8.00 19.93 0.28 6 -19.66 -19.28 O Fisher Inv, Inc -Foreign Equity Institutional- Gross Size 7.86 19.58 0.28 7 -21.01 -22.45 . Freedom Cap Mgmt -Freedom International Fund -Gross Size 10.33 20 15 19.63 22 79 0.41 7 -21.91 -23.23 ~ State StGblAdv - InternationalAlpha -Gross Size . . 0.77 7 -18.20 -15.17 Templeton -Templeton Developed Markets Ex-US Equity Composite - 8.20 7 27 19.74 20 19 0.29 6 -18.85 -20.32 ® Gross Size . . 0.24 6 -20.47 -23.43 Boston Co Asset Mgmt -The Boston Company International Core Equity ~ 11 .53 17.86 0.51 5 -16 50 -13 64 Fund -Net Size . . ~ Wentw orth Hauser - W HV International Equity -Gross Size 12.49 20 39 49 0 6 1 • MSCI EA FE . . - 8.41 -17.06 4.94 20.50 0.13 9 -19 68 -22 95 Timeframa• 5 vo~« T~scr.... . . 17 Bogdahn Consulting, LLC. 5Yr Negative Quarters Worst Quarter Worst 4 Quarters International Manager Review: 25 Alpha Index: MSCI EAFE Analysis Period: 01/01/2001 - 12/31/2005 20 15 10 5 0 -5 M04 S04 M05 S05 D03 J04 D04 J05 D05 12 Quarters Ending Performance: Rolling Alpha and Beta Benchmark: MSCI EAFE 5 Years Trailing ending 12/31/2005 Data calculated using Quarterly returns Beta Index: MSCI SAFE Analysis Period: 01/01/2001 -12/31/2005 18 BOg~lII Ci0II8llit].IIg, T al.~i. M04 S04 M05 S05 D03 J04 D04 J05 D05 12 Quarters Ending 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Advent Reports BOGDAHN CONSULTING, LLC. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I 1 1 1 1 Bogtiahn Consulting, LLC. PORTFOLIO APPRAISAL Lakeland Firefighters' Westwood Mgm~ Corp. December 31, 2005 (Excluding Reinvested Divs.) Unit Total Market Pct. Quantity Security Cost Cost Price Value Gsiu/Loss Assets DOMESTIC EQUITIES Mutual Funds Large Cap 4,076.270 Westwood Trust 387.36 1,578,978.85 522.91 2,131,527.54 552,548.69 14.6 IargeCap Fund Mid Cap 6,020.508 Westwood Trust 200.83 1,209,123.32 311.44 1,875,041.40 665,918.08 12.9 SMidCap Fund 2,788,102.17 4,006,568.94 1,218,466.77 27.5 Multi Cap Growth Specialty Iq. 22,922.901 Westwood Trust 50.83 1,165,223.81 62.42 1,430,946.07 265,722.27 9.8 MultiCap Growth Fund 1,165,223.81 1,430,946.07 265,722.27 9.8 Income Fund Specialty F9. 10,471.127 Westwood Alternative i 10.33 (,155,246.50 126.81 1,327,849.83 172,603.34 9.1 Real Income Fund 1,155,246.50 1,327,849.83 172,603.34 9.1 REIT Specialty E9. 1,818.728 Westwood Trust REIT 187.44 340,906.29 251.54 457,481.83 116,575.54 3.1 340,906.29 457,481.83 116,575.54 3.1 Small Cap Fund Small Cap 20,320.000 (shares Tr Russell 2000 54.63 1,110,121.15 66.72 1,355,750.40 245,629.25 9.3 1,110,121.15 1,355,750.40 245,629.25 9.3 6,559,599.92 8,578,597.08 2,018,997.16 58.8 INTERNATIONAL EQUTIIES Global Funds Foreign 13,020.204 Westwood International 94.89 1,235,543.91 111.59 1,452,941.51 217,397.60 10.0 Fund 1,235,543.91 1,452,941.51 217,397.60 10.0 1,235,543.91 1,452,941.51 217,397.60 10.0 FIXED INCOME Bond Funds 35,230.304 Westwood bond fiord 122.32 4,309,546.52 120.00 4,227,530.83 -82,015.69 29.0 4,309,546.52 4,227,530.83 -82,015.69 29.0 4,309,546.52 4,227,530.83 -82,015.69 29.0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL Lakeland Firefighters' Westwood Mgmx Corp. December 31, 2005 (Excluding Reioveated Divs.) Unit Total Quantity Security Cost Cost Price CASH & EQUIV. Cash Accounts Cash & Equiv. Cash Money Markets 330,296 SEI Government Sec. TOTAL PORTFOLIO 2,316.49 2,316.49 1.00 330,296.31 330,296.31 332,612.80 12,437,303.15 2 Market Value 2,316.49 2,316.49 Pct. Gain/Loss Assets 0.00 0.0 0.00 0.0 1.00 330,296.31 0.00 2.3 330,296.31 0.00 2.3 332,612.80 0.00 2.3 14,591,682.22 2,154,379.07 100.0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Bogtiahn Consulting, LLC. CONTRIBUTIONS/WITHDRAWALS Lakeland Firefighters' Westwood Mgmi± Corp. From 10-01-OS To 12-31-OS Tran Trade Settle Broker Code Date Date Security Amount Qusutity Code Commission CONTRIBUTIONS 0.00 WITHDRAWALS 0.00 EXPENSE ACCOUNTS 0.00 AFTER FEE PERFORMANCE EXPENSE ACCOUNTS dp 10-17-05 10-17-05 Administration Fee 19,545.97 Quarterly management fee for 4th quarter 2005 19,545.97 PORTFOLIO NET TOTAL -19,545.97 EXPENSE ACCOUNTS PAID BY CLIENT 0.00 AFTER FEE PERFORMANCE EXPENSE ACCOUNTS PAID BY CLIENT 0.00 GRAND TOTAL -19,545.97 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Bogdahn Consulting, LLC. PURCHASE AND SALE Lakeland Firefighters' Westwood Mgm~ Corp. From 10-Ol-OS To 12-31-OS Trade Settle Unit Date Date Quantity Security Price Amount PURCHASES 10-31-OS 11-O1-OS 8,384 SEI Government Sec. 1.00 8,384.36 11-30-OS 12-O1-OS 37,140 SEI Government Sec. 1.00 37,139.82 12-31-OS 01-02-06 43,157 SEI Government Sec. 1.00 43,157.30 88,681.48 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Bogdahn Consulting, LLC. INCOME AND EXPENSES Lakeland Firefighters' Westwood Mgm~ Corp. From 10-Ol-OS Through 12-31-OS Ex-Date Pay-Date Security Bond Funds 10-31-OS 10-31-OS Westwood bond fund 11-30-OS 11-30-OS Westwood bond fund 12-31-OS 12-31-OS Westwood bond fund Global Funds 10-31-OS 10-31-OS Westwood International Fund 11-30-OS 11-30-OS Westwood International Fund 12-31-OS 12-31-OS Westwood International Fund Mutual Funds 10-31-OS 10-31-OS Westwood Trust LargeCap Fund 10-31-OS 10-31-OS Westwood Trust SMidCap Fund 11-30-OS 11-30-OS Westwood Trust I,argeCap Fund 11-30-OS 11-30-OS Westwood Trust SMidCap Fund 12-31-OS 12-31-OS Westwood Trust LargeCap Fund 12-31-OS 12-31-OS Westwood Trust SMidCap Fund Money Markets 10-03-OS 10-03-OS SEI Government Sec. 11-01-OS 11-01-OS SEI Govenunent Sec. 12-O1-OS 12-O1-OS SEI Government Sec. Multi Cap Growth 10-31-OS 10-31-OS Westwood Trust MultiCap Growth Fund I 1-30-OS 11-30-OS Westwood Trust MultiCap Growth Fund 12-31-OS 12-31-OS Westwood Trust MultiCap Growth Fund Income Fund 10-31-OS 10-31-OS Westwood Alternative Real Income Fund 11-30-OS 11-30-OS Westwood Alternative Real Income Fund 12-31-OS 12-31-OS Westwood Alternative Real Income Fund 1tETT 10-31-OS 10-31-OS Westwood Trust REIT 11-30-OS 11-30-OS Westwood Trust REIT 14,820.72 14,525.24 14,428.07 43,774.03 2,503.72 1,384.41 2,792.30 6,680.43 2,499.07 2,682.14 4,566.03 3,944.27 5,878.23 1,791.38 21,361.12 699.01 747.11 842.68 2,288.80 285.35 574.01 1,514.32 2,373.68 7,440.34 6,604.37 1,563.08 1,698.91 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Bogdahn Consulting, LLC. INCOME AND EXPENSES Lakeland Firefighters' R'estwood Mgm~ Corp. From 10-O1-OS Through 12-31-OS Ex-Date Pay-Date Security Amount 12-31-05 12-31-OS Westwood Trust REIT 3,030.12 6,292.11 Small Cap Fund 12-29-OS 12-29-OS Ishares Tr Russe112000 5,302.36 5,302.36 After Fee Performance Expense Accounts 10-17-OS 10-17-OS Administration Fee 19,545.97 19,545.97 NET INCOME 90,997.97 2 Bogtiahn Consulting, LLC. ' DATE TO DATE GAINS AND LOSSES Lakeland Firefighters' Westwood Mgmz Corp. From 09-30-OS to 12-31-OS 09-30-05 Additions 12-31-05 12-31-05 ' Security Market Value Withdrawals Market Value Cost Basis Bond Funds ' Westwood bond fund 4,242,549.50 -43,774.03 4,227,530.83 4,309,546.52 4,242,549.50 4,227,530.83 4,309,546.52 ' Bond Funds Total 4,242,549.50 4,227,530.83 4,309,546.52 Cash Accounts Cash & Equiv. ' Cash 0.00 21,862.46 2,316.49 2,316.49 0.00 2,316.49 2,316.49 ' Cash Accounts Total Global Funds 0.00 2,316.49 2,316.49 Foreign Westwood International 1,389,516.19 -6,680.43 1,452,941.51 1,235,543.91 ' Fund 1,389,516.19 I ,452,941.51 1,235,543.91 ' Global Funds Total 1,389,516.19 1,452,941.51 1,235,543.91 Mutual Funds Large Cap ' Westwood Trust 2,102,215.49 -12,943.33 2,131,527.54 1,578,978.85 LargeCap Fund 2,102,215.49 2,131,527.54 1,578,978.85 ' Mid Cap Westwood Trust 1,861,409.76 -8,417.79 1,875,041.40 1,209,123.32 SMidCap Fund ' 1,861,409.76 1,875,041.40 1,209,123.32 Mutual Funds Total 3,963,625.26 4,006,568.94 2,788,102.17 ' Money Markets Realized Gain or Loss Unrealized Gain or Loss Cost Market 0.00 0.00 -82,015.69 -15,018.68 0.00 0.00 -82,015.69 -15,018.68 0.00 0.00 -82,015.69 -15,018.68 0.00 0.00 217,397.60 63,425.32 0.00 0.00 217,397.60 63,425.32 0.00 0.00 217,397.60 63,425.32 0.00 0.00 552,548.69 29,312.05 0.00 0.00 552,548.69 29,312.05 0.00 0.00 665,918.08 13,631.63 0.00 0.00 665,918.08 13,631.63 0.00 0.00 1,218,466.77 42,943.68 SEI Government Sec. 241,614.83 86,392.68 330,296.31 330,296.31 0.00 0.00 241,614.83 330,296.31 330,296.31 0.00 0.00 Money Markets Total 241,614.83 330,296.31 330,296.31 0.00 0.00 1 0.00 0.00 0.00 0.00 Bogdahn Consulting, LLC. ' DATE TO DATE GAINS AND LOSSES Lakeland Firefighters' Westwood Mgmx Corp. From 09-30-OS to 12-31-OS 09-30-05 Additions 12-31-05 12-31-05 ' Security Market Value Withdrawals Market Value Cost Basis Multi Cap Crowth Specialty E9. ' Westwood Trust 1,378,853.78 -2,373.68 1,430,946.07 1,165,223.81 MultiCap Growth Fund 1,378,853.78 !,430,946.07 1,165,223.81 ' Multi Cap Gro Total 1,378,853.78 1,430,946.07 1,165,223.81 Income Fund t Specialty E9. Westwood Alternative 1,359,798.29 -22,471.41 1,327,849.83 1,155,246.50 Real Income Fund 1,359,798.29 1,327,849.83 1,155,246.50 ' Income Fund Total 29 1 359 798 1 327 849 83 1 155 246 50 , , . , , . , . , REIT 1 Spec~~Tyl~. Westwood Trust REIT 455,883.35 -6,292.11 457,481.83 340,906.29 455,883.35 457,481.83 340,906.29 ' REIT Total 455 883 35 457 481 83 340 906 29 . , , . , . Small Cap Fund Small Cap Ishares Tr Russell 2000 1,349,044.80 -5,302.36 1,355,750.40 1,110,121.15 1,349,044.80 1,355,750.40 1,110,121.15 ' Small Cap Fun Total 1,349,044.80 1,355,750.40 1,110,121.15 ' TOTAL PORTFOLIO 14,380,886.00 14,591,682.23 12,437,303.15 ' 2 Realized Galn or Loss Unrealized Gain or Loss Cost Market Cost Market 0.00 0.00 265,722.27 52,092.29 0.00 0.00 265,722.27 52,092.29 0.00 0.00 265,722.27 52,092.29 0.00 0.00 172,603.34 -31,948.45 0.00 0.00 172,603.34 -31,948.45 0.00 0.00 172,603.34 -31,948.45 0.00 0.00 116,575.54 1,598.48 0.00 0.00 116,575.54 1,598.48 0.00 0.00 116,575.54 1,598.48 0.00 0.00 245,629.25 6,705.60 0.00 0.00 245,629.25 6,705.60 0.00 0.00 245,629.25 6,705.60 0.00 0.00 2,154,379.07 119,798.24 ~ Morningstar Attribution ~ Reports 1 ' BOGDAHN CONSUITING~ LLC. 1 1 1 i [] Portfolio Fact Sheet: Client Summary Page 1 of 4 Data Updated Through: For internal and/or client reporting purposes only 12-31-2005 Equity Style Review Sample P°rt~D'10 ~~'° Benchmark: Standard & Poor's 500 $ 3,327,313.70 Composition % Portfolio Bmark ~ Cash 0.01 0.00 • US Stocks 95.18 100.00 • Non-US Stocks 4.67 0.00 • Bands 0.00 0.00 4F Other 0.15 0.00 Current hrvestrnssrt Style Fixed-Income Intrsstmertt Style % Style Maturity Value Core Growth Short Interm Long 33 30 17 Large Size High Quality 8 7 5 Medium Medium Small Low Sector Weightings Regional Exposuro % of Stocks ~ Portfolio J Bmark % of Assets Portfolio Bmark Info Economy 17.13 20.80 '0` ~~J Americas 97.52 100.00 Software 1.82 3.70 m V North America 96.57 100.00 Hardware 11.95 10.40 Q ~M Latin America 0.94 0.00 Media 0.10 3.70 ~ J Greater Europe 1.80 0.00 Telecommunication 3.25 3.10 ~ ^ United Kingdom 0.00 0.00 Service Economy 50.99 45.80 C= ~~~~~I Europe dap 1.80 0.00 Healthcare 11.98 12.70 ®~~ Europe emrg 0.00 0.00 Consumer Services 9.93 8.20 ®~ Africa/Middle East 0.00 0.00 Business Services 6.54 3.90 ~ ~ Greater Asia 0.53 0.00 Financial Services 22.53 21.00 ©~~r Japan 0.00 0.00 Mfg Economy 31.89 33.40 d ~~~1~ Australasia 0.53 0.00 Consumer Goods 7.73 8.60 ®~ Asia dev 0.00 0.00 Industrial Materials 13.78 12.20 ~ ~~ Asia emrg 0.00 0.00 Energy 7.71 9.30 ~ t~ Not Available 0.15 0.00 Utilities 2.67 3.30 Q ~ % a 1o zo 3a ao so so io ea so 100 s ~ hr.. Trailing Returns Returns Th_r_o_u_gh 12-31.2005 _ _ _ _ _ _ _ _ _ _ _ _ Investment Activity Groph 3 Ma I Yr 3 Yr 5 Yr 10 Yr Pre-Tax Portfolio Return 4.21 20.29 29.95 17.11 P1.74 Total Market Value: $3,327,314 $ 000 +/- Benchmark Return 2.13 15.38 15.57 16.57 - --------------------------- 12.67 --------------------------------- ----------- -3500.0 BssUWorst Time Periods 3_Months_______- Return% tYear___________ Retum% 3Years__________ Retum% ' Best 04-03/06-03 24.26 03-03/02-04 63.62 10-02/09-05 33.34 Worst 06-98/08-98 -17.11 04-02/03-03 -17.24 04-00/03-03 3.60 RitWRswms Against MF Universe Average Star Rating ' n6130 hnds111 6126 finds) (9963 hods) Portfolio 2.8 * (94%~* Return 5 5 2 Mgd Products 0.0 * (0%-* Risk 71 74 75 Stocks 2.8 * (94%-* ' It =bed, 100=wudl 'pacert d portlolio wed ri everape ' Top 5 holdings out of 62 Type Holding Value S % Assets Next 5 holdings out of 62 Type Holding Value S % Assets SanDisk ST 128781.00 3.87 Goldman Sachs Group ST 79180.20 2.38 Omnicare ST 102996.00 3.10 Metropolitan Ufe Insurance ST 78400.00 2.36 CIT Group ST 86472.60 2.60 Apache ST 75372.00 2.27 ' Hartford Financial Services Group ST 85890.00 2.58 Altria Group ST 74720.00 2.25 Burlington Northern Santa Fe ST 81443.00 2.45 Occidental Petroleum ST 74288.40 2.23 02005 hAmirgdr Inc. PN rigMa reserved. The irdamretran, dria, endytea end apiriom contained herein 111 iridide tla mdMentid end proprietary idormatran d hAunngster, 121 may rot 6e spied err ~ ra6stdbried,l31 do rat aaratrMe irnarshrient edNa offered by Manwgder, III ere provided addy b:dom.trand prrpaea end Madge ere not = a6er to buy err adl a arnaiN. a~ 151 are rat wanamed to be arrem, aampbte MnRNIN AR a acarrie. Fxept es oMerwise rerpded by law, Mormgda aheX not be reepandble fa any tredirrp daida*, danrpes a oMa loeeea resulting ham, a related to tNS inlmnatran, date, analyses a opinions a Mdr we. This repan k.gplerreed edea btaeNe. 6 eopllirahle it mud be preceded a acarrganed by a prospectus a epurvdad. and rliadoare drianan. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Portfolio Fact Sheet: Advisor Detail Page 2 of 4 Data Updated Through: for iMemal and/or client reporting purposes only 12-31-2005 ° O Equity Style Review Sample Poltfo~i° v^i°e Benchmark: Standard 6 Poor's 500 $ 3,327,313.70 Market Maturity Geo Avg Market Capitalization 1SMiq Valuation Multiples Portfolio Bmark Interest Rate Rick Portfoio % of stocks Portfolio Bmark Portfolio 24853.72 P/E Ratio TTM 16.29 17.30 Maturity - Developed Markets 99.05 100.00 Benchmark 47642.00 P/B Ratio TTM 2.62 2.80 Emerging Markets 0.95 0.00 P/S Ratio TTM 1.60 1.50 Duration (total portfolio) Not Available 0.00 0.00 P/C Ratio TTM 11.97 10.80 Avg Credit Quality Type Weightings Profitability Portfolio Bmark Credit Guality % of US Stocks ^ Portfolio _1 Bmark % of US Stocks 2003 2004 2004 % of Bonds High Yield 7.76 9.27 ~~ Net Margin 9.00 9.60 13.38 Govt. 0.00 BB 0.00 Distressed 0.00 0.79 ~ ROE 14.30 15.60 19.61 AAA 0.00 B 0.00 Hard Assets 7.73 10.11 ~L~ ROA 5.70 7.00 10.49 AA 0.00 Below B 0.00 Cyclical 14.63 11.93 ~~~ Debt/Capital 33.50 25.70 29.35 A 0.00 NR/NA 0.00 Slow Growth 20.75 19.83 ~~~~) BBB 0.00 Classic Growth 35.82 39.22 ~~~~~~~IJ Aggressive Growth 6.51 5.48 ~~ Speculative Growth 6.80 2.94 ~~ Not Available 0.00 0.43 ~ 96 0 5 10 15 20 25 30 35 40 45 50 Fund Statistics Potential Cap Gains Exposure NA Avg Gross Exp Ratio 0.61 Risk/Aeward Scatterplat Perrormance History Graph • Portfolio O Individual Holding ^Bmark ^ Portfolio Duarterly Returns +/- Benchmark in % 3 Year Mean 16.0 O O 82.1 71.2 12.0 O O O O 60.3 1 ^ - 8.0 O O 49.4 ~~ ~O O O 38.5 ~ ^ I ^ I ^ ^ ' 4.0 O ~ O O 27.6 Uli O O 16.7 ~ Bmark D O~ O „O 5.8 -4.0 -5.1 -16.0 -8.0 3 Year Standard Deviation Risk end Return Statistics 3 Yr _ _ _ _ 5 Yr _ _ _ _ _ _ 10 Yr _ _ _ _ _ _ _ _ MPf Statistics 3 Yr - 5 Yr _ _ 10 Yr _ lMMio amrlc Padoll0 &nark Pa11o110 &riark Portlaho Partldl0 Patlda Standard Deviation 11.61 9.20 16.45 14.99 16.75 15.62 Alpha 10.98 15.60 11.45 Mean 29.95 14.38 17.11 0.54 21.74 9.07 Beta 1.19 1.04 0.97 Sharpe Ratio 2.17 1.30 0.91 -0.04 1.05 0.40 R-squared 88 90 82 02005 Mmiigatr hic. All dghla reserved. The idormetron, data, eWysaz and ophiau omtdned hrein 111 widude the oorddentrd end Prapdelary idametran d Manirpaur. 121 may riot be copied a n6mibutrd,131 do not cenatrnde inreabnent advice rMred by Matwpater, 141 re provided eddy ha idametraW pupoees end tlbrdae re na en olfe to buy a WI a erardry, end (5) re not warranted to be anew, mrylde a etsuete. Fmpt es atlrenviae requred bylaw, Marinpdr shell not W raepandble la erry tradhg dedeiau, danrpee a other Imeae resulting han, a rdated to this mronneUm, data, rulysae a apidars a tlbir use. lhie spat u ergplrrirdd Wes itrettre. H eppacede it m¢t be preceded a sxangried by a prwpectrs a aluvdent and disdosae datanad. MC~RNIN6SfAR® ' Portfolio Fact Sheet: Holdings For internal and/or client reporting purposes only Page 3 of 4 Data Updated Through: 12-31-2005 Equity Style Review Sample Portfolio Value BencMnark: Standard fi Poor's 500 $ 3,327,313.70 t Total 82 hoWinps as of 12-31.2005 Type Portfolio % of Holding 1 Yr 3 Yr 5 Yr 10 Yr Max Front Max Back Expense Holdings Date Assets Value S Ret % Ret % Ret % Ret % Load % Load % Ratio % ' SanDisk ST 3.87 128781.00 151.58 83.60 35.26 32.56 Omnicare = ST 3.10 102996.00 65.62 34.25 21.86 10.23 _ _ _ CIT Group ST - 2.60 86472.60 14.58 40.49 - - - - - ' Hartford financial Services Group Burlington Northern Santa Fe ST = ST 2.58 2.45 85890.00 81443.00 25.81 51.72 25.98 41.98 5.89 22.15 15.72 12.34 = _ _ Goldman Sachs Group ST - 2.38 79180.20 23.89 24.51 4.45 - - - - Metropolitan Ufe Insurance ST - 2.36 78400.00 22.22 23.13 7.93 - - - - ' Apache ST 2.27 75372.00 36.28 36.98 18.45 19.12 Altria Group = ST 2.25 74720.00 27.72 29.23 17.03 15.17 = _ _ Occidental Petroleum ST - 2.23 74288.40 39.15 44.36 30.54 18.32 - - - Fiserv ST 2.08 69232.00 7.66 8.42 6.47 17.15 ' DR Horton = ST 2.06 68601.60 19.41 62.04 38.65 29.17 = _ _ Citigroup ST - 2.04 67942.00 4.63 15.02 2.91 19.61 - - - Bank of America ST - 2.00 66456.00 2.39 14.33 19.56 14.08 - - - ' Johnson Controls ST - 1.97 65619.00 16.87 24.10 24.96 17.67 - - - Freddie Mac ST - 1.96 65350.00 -9.16 5.62 0.74 13.84 - - - Associated Banc-Corp ST - 1.96 65100.00 1.21 16.74 15.98 11.68 - - - Michaels Stores ST 1.91 63666.00 19.19 32.28 40.46 26.55 Wachovia = ST 1.91 63432.00 4.29 17.10 17.38 10.50 = _ _ Motorola ST - 1.90 63252.00 32.43 44.63 5.81 3.94 - - - ' Eaton Affiliated Computer Services ST = ST 1.90 1.85 63064.60 61547.20 -5.44 -1.68 22.06 3.97 18.18 14.29 13.99 20.23 = _ _ Texas Instruments ST 1.83 60933.00 30.78 29.31 -7.17 17.96 VF ST - 1.83 60874.00 1.82 17.95 11.38 10.23 - Amdocs ST 1.82 60500.00 4.76 40.95 -16.13 - Wyeth = ST 1.80 59891.00 10.54 9.65 -4.28 8.85 _ _ _ SuperValu ST - 1.76 58464.00 -4.11 28.21 21.54 10.39 - - - Allstate Johnson 6 Johnson ST = ST 1.74 1.72 57854.90 57095.00 6.93 -3.36 16.26 5.79 6.85 4.46 12.39 12.58 = _ _ Valero Energy ST 1.71 56760.00 128.46 78.89 42.05 Masco ST - 1.68 55851.50 -15.34 15.53 5.76 9.16 - - - ' Amgen ST 1.66 55202.00 22.93 17.72 4.28 18.18 Intel = ST 1.65 54912.00 8.12 17.94 -3.08 13.83 = _ _ Textron ST - 1.62 53886.00 6.24 24.43 13.50 11.05 - - - Sempra Energy ST 1.62 53808.00 25.62 27.62 18.11 11.99 = = _ _ ' Kimberly-Clark ST 1.54 51299.00 -6.73 11.47 -0.67 6.21 Limited Brands ST - 1.51 50287.50 -0.27 22.26 9.13 13.86 - - - General Mills ST - 1.48 49320.00 1.88 4.25 4.63 8.48 - - - ' IBM ST 1.48 49320.00 -15.83 2.82 0.06 14.49 WeIlPoint = ST 1.44 47874.00 38.77 36.39 = _ _ BCE ST - 1.40 46463.00 3.79 14.79 0.23 28.69 - - - Archer Daniels Midland ST 1.37 45621.00 12.25 27.94 13.40 7.83 ' United States Steel = ST 1.33 44224.40 -5.36 55.57 23.49 7.30 = _ Wal-Mart Stores ST - 1.29 43056.00 - 10.30 -1.59 -1.73 16.25 - - - PPG Industries ST - 1.29 42846.00 - 12.62 8.17 7.88 5.32 - - - Per/ormance Disc%sure llre performance data quoted represents past performance and does notguarantee future resu/ts. The investment return and principal r~lue ofan investment will ' {luctuate thus an investors shares, when redeemed, maybe worth more arless than theirorigina/cost. Currentperformance maybe loweiorhigherthan return data quoted herein. Formore current information please visit www.momingstaradvisorcom/Yamilyinfo. ' See Disc%sure Page for Standardized Returns. 02W5 FMlirgda Inc. Ap righb reserved. the irdarrrre~m, data, endysa rrdishmded 131 do rat anetrMe imashrraa edvia dlaed by Marwpar and ~rdms cmtdrred bean 111 include the aafidentld end prrpridary Mmnetim d Mmwpster, 121 mey rot be copied a 111 re prrMded eddy la irAarnretrarW pupam nd tladae re not sn ofla to buy a adl a taariry end (5) are nd wsranled to be correct car lde s MC~RNIN6Sf AR , , , . g a ernrsts. Ecapt u othavdce rerpired by law, blarwgatar shall not be rerpanibie fa airy tredng deadau, rlarnepes a Ma bases resdtinD horn, a rdeted to this mlombUm, date, endyaes a opidau a Ihdr use. This repay ' p npplenieritd tales btaeNe. d eppllirable it must be preceded a accmpaied by a Droepeclus a egdvelenL end disdaure etateneit. -7 _. _.__ __._ Portfolio Fact Sheet: Holdings For internal and/or client reporting purposes only Page 4 of 4 _ Data Updated Through: 12-31-2005 ° Equity Style Review Sample Portfolio Value Benchmark: Standard fi Poor's 500 $ 3,327,31 3.70 ' Total 82 holdings es of 12-31.2005 Type Portfolio % of Holding 1 Yr 3 Yr 5 Yr 10 Yr Max Front Max Back 6cpense Holdings Date Assets Value S Ret % Ret % Ret % Ret % Load % Load % Ratio % ' Verizon Communications ST 1.24 41264.40 -22.18 -4.05 -6.09 2.67 Nordstrom ST = 1.24 41140.00 61.70 60.14 34.74 15.52 = _ _ Pfizer ST - 1.23 40810.00 -10.62 -6.48 -11.04 9.92 - - - Cisco Systems ST 1.18 39376.00 -11.39 9.33 -14.85 15 24 ConocoPhillips ST = 1.15 38398.80 36.89 37.41 18.39 . 16.24 = _ _ United Technologies ST - 1.11 36900.60 10.03 23.71 8.92 18.54 - - - O.uest Diagnostics ST - 1.01 33462.00 8.50 22.44 8.02 - - - - Caterpillar ST 0.97 32351.20 20.68 39.07 22.50 17.50 ' PPL ST = 0.87 28812.00 14.03 23.56 9.14 14.01 = _ _ iShares Mexico Index ETF 2005-11-30 0.72 24079.94 45.61 43.29 23.73 - 0.00 0.00 0.59 iShares Austria Index ETF 2005-11-30 0.57 19104.77 21.50 48.74 30.33 0.00 0.00 0.59 ' iShares Australia ETF 2005-11-30 0.53 17719.03 16.66 31.75 18.47 = 0.00 0.00 0.59 iShares Spainlndex ETF 2005-11-30 0.50 16713.28 4.45 28.46 10.44 - 0.00 0.00 0.59 iShares Italy Index ETF 2005-11-30 0.48 15950.48 1.49 23.04 4.95 - 0.00 0.00 0.59 ' International flavors & Fragrances ST - 0.41 13634.50 -20.20 0.36 12.74 -0.77 - - - iShares Brazil Index ETF 2005-11-30 0.36 11871.28 52.46 63.33 18.02 - 0.00 0.00 0.74 iShares Netherlands ETF 2005-11-30 0.26 8577.52 12.79 17.18 -0.55 - 0.00 0.00 0.59 Pedorn~ance Disc%sure ' The performance data quoted represents past performance and does not guarantee future results. The investment return and pnncipa/ va/ue ofan investment wi// fluctuate thus an investor's shares, when redeemed, maybe worth mare orless than their anginal cost. Currentpenbrmancernaybe lowerarhigher than return data quoted herein. For more current information p/ease visit www.momingstaradvisoi com/1`amilyinfo. ' See Oisc%sure Page for Standardized Hetums. 01005 MadnOria Inc. Ap d0hte resavad. The idameaan, date, aralyses rd epidaa antained herein 111 include the anfidentld rd prapdetay infarmedm d Marwgria, 121 may nor be ayied a • radabtuled,131 du nd rsmUbde imesbnad edNa eased by MamOetar, 111 ore presided eddy la sdamsOmel pupates nd tladare ore nor en dla to buy a sell a eearity, and 151 are rnt waraded to be caracL amplete M` /RNIN6~fY I a aauele. Fxxpt u otlawiae ragged by kw, Msmirgria rhdl rol be reapasvNe la hY trarfsq deddau, deme0ea a otlra bases reaulGrq horn, a rdated sa ais idmrodm, date, aialyses a apiniau a tlieir use. This repot ' ie ngplatradd ales Gtaahae. N apppiceble it mutt ba preceded a xmrpeded by a prospechu a eQUivdent, end dadaare riatemed. ~ Exhibit 3 1 Representative ~ Client List 1 1 1 ' BOGDAHN CONSULTING, LLC. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Florida Public Pension Clients client plan size Special Fire Districts Anna Maria Fire Control $ 1,400,000 Bonita Springs Fire Control $ 13,500,000 Destin Fire Control $ 2,500,000 East Lake Tarpon Fire $ 3,400,000 Englewood Fire Control $ 6,100,000 Midway Fire Protection $ 390,000 North Bay Fire Control $ 440,000 North River Fire Control $ 5,900,000 Okaloosa Island Fire Control $ 1,650,000 Ocean City Wright Fire $ 2,600,000 South Walton Fire Control $ 3,800,000 Municipalities City of Altamonte Springs (F,G,P) $ 87,500,000 City of Arcadia F,P) $ 7,200,000 City of Avon Park (F,P) $ 6,500,000 City of Belleair Bluffs (F) $ 650,000 City of Belle Glade F,G,P) $ 21,100,000 City of Brooksville (F,P) $ 5,700,000 City of Bunnell (F) $ 330,000 City of Casselberry (F, P) $ 2,750,000 City of Crescent City (F,P) $ 820,000 City of Crestview (F,G,P) $ 13,500,000 City of Dania Beach (F) $ 26,500,000 City of Deltona (F) $ 6,500,000 City of Edgewater (F,G,P) $ 16,000,000 City of Eustis (F) $ 4,720,000 City of Fernidina Beach (F,G,P) $ 23,000,000 City of Flagler Beach (F,P) $ 1,300,000 City of Fort Myers (F) $ 35,400,000 City of Frostproof (P) $ 2,391,000 City of Gulfport (F,P) $ 6,000,000 City of Holmes Beach (P) $ 3,184,000 City of Homestead (F) $ 4,600,000 City of Lakeland (F) $ 14,400,000 City of Lake Alfred (G,P) $ 3,700,000 City of Lake City (F,G,P) $ 20,000,000 City of Lake Worth (DivII F) $ 4,065,000 City of Lynn Haven (F) $ 1,700,000 City of Melbourne (G,F) $ 48,600,000 City of Monticello (F,P) $ 1,520,000 City of Mount Dora (F,G,P) $ 15,300,000 City of Neptune Beach (P) $ 3,850,000 City of Oakland Park (G) $ 20,200,000 contact Mary Stephens Chief Dan Gourley Wanda Martin James Finley Lt. Kirk Gaskell Captain R. Carbonell Patrick Jacobs Capt. Ann McHugh Joe Early Dan Friel Nathan Brown Mark DeBord Shelly Baumann Carol Knapp Debra Sullivan Stacey Rogers Margaret Bosack Derek Fraser Jeffery Drier Allen Peacock Kathy Austin Cathy David Lisa Spriggs Debbie Sigler Chief Roy Tremain Robin Marley Charlie Helm Chief Chappelle Barbara Smith Mike Arras Lt. Stephenson Pete Prior Gary Clark Mike Stripling Chief Albritton Jeff Joel Lt. D. Hernandez Jennifer Chase Patti Claiborne Chief Scoggins Karla Strait Catherine Graham telephone number 941.741.3900 941.992.3320 850.837.8413 727.784.8668 941.474.3311 850.932.4771 850.897.3689 941.721.6700 850.244.5373 850.862.1185 850.231.4763 408.571.8090 863.494.2514 863.453.5258 727.584.2151 561.992.1635 352.544.5407 904.437.2457 407.262.7700 386.698.1212 850.682.6132 954.921.0404 407.665.7172 386.424.2408 352. 357.6585 904.277.7320 386.439.1627 941.334.6222 863.635.7854 727.893.1030 941.708.5804 954.730.2068 862.834.8794 941.291.5747 904.752.4344 561.586.1711 850.265.4111 407.953.6248 850.342.0153 352.735.7170 904.270.2400 954.561.6260 Public Pension Fund Evaluation Clients, continued City of Oviedo (F,P) $ 7,700,000 Sheila Hutchinson 321.267.3082 ' City of Palm Beach Gardens (F,G) $ 15,950,000 Sarah Varga 561.799.4166 City of Palmetto (P) $ 6,016,000 Diane Ponder 941.723.4570 ' City of Perry (F,P) City of Punta Gorda (P) $ $ 5,800,000 7,200,000 Det. Mike Anderson Chief Chuck Rinehart 850.584.5121 941.575.5519 City of Quincy (F,P) $ 5,400,000 Sgt. Shane Geiger 850.875.7315 City of St. Pete Beach (F,G,P) $ 27,300,000 Dr. Hugh McGuigan 727.360.1797 ' City of Sebring (F,P) $ 15,600,000 George Hensley 863.471.5105 City of South Pasadena (F) $ 3,900,000 Larry Wilson 727.344.1666 City of Sweetwater (P) $ 3,300,000 Marie Schmidt 305.593.2644 City of Tarpon Springs (G) $ 3,220,000 Jane Kniffen 727.938.3711 ' City of Temple Terrace (F,P) $ 22,400,000 Div. Chief David Becker 727.989.7120 City of Umatilla (P) $ 740,000 Karen Howard 352.669.3561 City of Venice (F,G,P) $ 36,200,000 Shawn Carvey 941.480.3030 ' City of West Melbourne (P) $ 2,840,000 Chief Brian Lock 321.723.9673 City of West Palm Beach (G) $ 17,200,000 Alfredo Lay 561.659.8050 ' City of Winter Garden (F,G,P) City of Winter Haven (F,G,P) $ $ 25,300,000 51,600,000 Ken Holton Suzy Pita 407.656.3679 352.787.9795 Town of Belleair (P) $ 1,500,000 Donna Carlen 727.588.3783 ' Town of Havana (F) $ 475,000 Karen Myrick 850.539.2820 Town Howey-in-the-Hills (P) $ 680,000 Rick Thomas 352.324.2030 Town of Indian Shores (P) $ 773,000 Doug Pasley 727.595.5414 Town of Lady Lake (P) $ 1,950,000 Ms. Karen Rickelman 352.751.1538 Town of Orange Park (F) $ 3,200,000 Jim Schaudel 904.264.3411 ' Village of Tequesta (G,PS) $ 3,300,000 Gwen Carlisle 561.575.6209 New Relationships in 2006 ' City of Ft. Myers General Employee: $ 50,000,000 City of Kissimmee Police $ 30,000,000 City of Marianna Police & Fire $ 5,500,000 ' City of St. Augustine Fire $ 8,000,000 G -Genera/ Employees' Pension Board ' F- Firefighters' Pension Board P -Police Officers' Pension Board PS -Public Safety Officers' Pension Board ' Investment Consulting and Performance Eva/nation Services provided a// clients u 1 1