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Home My WebLink About2007 03 29 Handout - Bogdahn Report December 2006 March 29,2007 Handouts given to Board of Trustee members from Bogdahn Consulting, LLC at the March 29, 2007 Special Meeting regarding Agenda Item 300. " BOGDAHN CONSULTING, LtC. simplifying your investment decisions '. " '. City of Winter Springs GENERAL EMPLOYEES' DEFINED BENEFIT PLAN & TRUST " " h# " -.JDecember,2006-.J '* .. ,"' '" www.bogdahnconsulting.com " " 340 W. Central Ave. Ste 300 . Winter Haven, Florida 33880 Telephone (863) 293-8289 . Facsimile (863) 292-8717 c4 Performance Evaluation for City of Winter Springs Employees' Defined Benefit Plan and Trust Trusco Capital Management For the Period Ending December 31,2006 Presented by: Bogdahn Consulting, LLC City of Winter Springs Employees' Defined Benefit Plan and Trust Executive Summary Report Explanation The Executive Summary provides an overview of the fund's performance. It shows the performance in dollars, percent, and relative to the investment policy. These are provided over different time periods including up and down markets. All rates of return are annualized if the period for which they are calculated exceeds one year. Account Reconciliation: This section shows the performance of the account in dollars, during the most recent quarter, the calendar year, and since the inception date. The Beginning Value is the value at the start of each period. The Ending Value shows the value as of the date of the report. Net contributions are the total contributions less the total withdrawals during the period. The Investment G/L is the gain or loss resulting from the investments. It is the difference between the beginning and ending values that cannot be explained by the net contributions. Positive investment G/L figures represent a profit, and negative values represent a loss. Investment Policy: This section defines the benchmark against which the fund is being compared. Generally, this is the most important objective for a fund to achieve. The performance of the fund relative to this measure over longer periods of time, such as market cycles, is the strongest indicator of the success or failure of the investment strategy. This objective should be reasonable, and the performance of the fund should be measured against the investment policy after adjusting for risk. Trailing Returns: This section shows the cumulative time weighted returns over the last 1 year, 2 years, and so on up through 10 years if available, as well as since the inception date. A positive difference indicates the fund has exceeded the policy's returns. The investor would prefer that this difference be positive for all time periods; however, it is more important for it to be positive for the longer periods rather than the shorter periods. Calendar Year Returns: This section gauges the consistency of performance over one year time periods. Each calendar year of performance represents the return from January 1 st through December 31 st. Watch out for a trend of declining relative performance in recent periods. Returns In Up/Down Markets: This section shows how the fund performed in both up and down markets. The methodology is to segregate the performance for each time period into the quarters in which the market, as defined by the policy, was positive and negative. Quarters with negative policy returns are treated as down markets, and quarters with positive policy returns are treated as up markets. Thus, in a 3 year or 12 quarter period, there might be 4 down quarters and 8 up quarters. Up market returns are calculated for the fund and the policy based on the up quarters. Down market returns are calculated for the fund and the policy based on the down quarters. The ratio of the fund's return in up markets to the policy's is the up market capture ratio. The ratio of the fund's return in down markets to the policy's is the down market capture ratio. Ideally, the fund would have a greater up market capture ratio than down market capture ratio. 1 City of Winter Springs Employees' Defined Benefit Plan and Trust Executive Summary Account Reconciliation Investment Policy 12/31/2006 Qtr ~~~inni:n~{VaI8~ <: j ~... ..,..5.2.. ...t... .: N~tP!ow~. :.....:...:.......:...:........... ... .375.. 2006 10/31/2000 YTD Incept Index Weight .................... ................... .................... ................... ................... ................... .: f~v~~t~~nt (3/L.. ....:.....:.:...:........ .~3$.. .. ~hdffl{)\I~I~~...... ............:.....: 14~538:. ........... . ......1. .1...8..1. o. ..... :::::::-::'~"< ::.:::: ........... . ............ . . . . . . . . . . . . . ........1,~~::. ............ . ........... . )?~t ........... . ..::: .14;$38:.: .........-... . ............. . ::..~:;~~ ............. . ............. . ............. . . . . . . . . . . . . . . . :1!::~: ........... . ........ . ......... . ......... . ::69;()O ......... . ......... . ......... . .....3.0...0..0... : -: . :- . ~. .:- ......... . S&P500 .............................. . .............................. . .............................. . .. (~h~~h. A.~Qre~~t~a9@.. · Jiv1SCIEAFE.. · ............... ,.. ......... . . . . . . . . . . . . . . . . . . . . . . ..................... . ..................... . ..................... . ..................... . .................... . ..................... . ..................... . . . . . . . . . . . . . . . . . . . . . . . .................... . . . . . . . . . . . . . . . . .. . ............ . ......... . ......... . ......... . 10;00 ......... . ......... . ......... . ......... . .....0.........0.... .10,0,. Total Trailing Returns through December 31,2006 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 1 0/31/2000 9 Yr 10 Yr Incept .... .. .. . ... ... . . .. .... F~~~ ..<1().~(\7.5P...J.~::1f~6 ..:..}.19<5~~9:<:.:.:.:. .................:...........:...: .:.J~1 .P~li6.Y.: ...:. :... .13~33....... ..9.1~. ..:.. ...:..9.40..:.. .12:36 .........$;85...:. ..4..5~.....:.:.:.............:.:. ....... . ....: ...:. ........:...:.:. :.: .... ....:.:................. ...............~."l6. biff~~.7'5 .......<1.6.6 >>.ci.()()<. ..;;1:00. <~q.$6..0,8~<...................... .............................. ..............<..>{$5. Calendar Year Returns 12/31/2006 2006 Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997 J:UhW}.~10:.5:W/4.50)1.1f1WM .. l?pi,C)i.......................:.....:.: 5'40:.. ... .1:3.~~.. ..:::......15.14.....::..: .9.~9... ... .~17;.:.. piff<......>.(j.!tJ> ...>2:15>Q;{)4t.57~2:3~ ........ . ;:1221 ........ . ......... . ......... . ~12;62 ......... . ........ . ......... . ........ . 0:41 ......... . ......1048.......................... .................,.. . ..................... . ..................... . ..........,.......... . "6:28........> . . .................... . ..........,.......... . ...............,..... . ...,................. . :1:nF<....... Returns in Up Markets Returns in Down Markets 3 Yr 5 Yr 1 0/31 /2000 6 Yr Incept 3 Yr 5 Yr 1 0/31/2000 6 Yr Incept . . . . . . . . .. ................. .......... ............. .............. .. F@~..... ................:.: 13.~... .....:.:..1 ~.8.::........... :11:.7.. ................ .1!t ..f.'6.iicy. ... ..:...............:.1~.~.... ..........17;9...... .......1~.7.... ......:.........1~t .: ~i:!tJ;O........................ .~~:~:... .......... ~~j....... ....... 9,{5... .............. .94:~ Fiiiid< · p()licy Ratio >2)3 >2:4 118;1 ~13;2 ~15;t sta ~15;5 ~18;9 :8tt A4:2 ~19;1 74;5 Inception date is October 31, 2000 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 2 City of Winter Springs General Employees' Defined Benefit Plan & Trust Asset Allocation Through December 31, 2006 At Market Equity 70% Cash & Equiv o Fixed Income 30% At Cost Cash & Equiv 0% Fixed Income 35% 3 City of Winter Springs Employees' Defined Benefit Plan and Trust Universe Comparison Report Explanation The universe compares the fund's returns to a group of other investment portfolios, called a universe. Ideally the universe is comprised of many other investment funds with similar investment profiles. Comparisons are provided over many different time periods. Trailing Returns: This section focuses on longer term returns. It shows the cumulative time weighted returns and percentile ran kings for the last 1 year, 2 years, 3 years, and so on up through 10 years if available. The returns for the fund, the policy and the universe percentiles are displayed. A percentile ranking of 1 is the best, and 100 is the worst. For example, a ranking of 50 means that the fund outperformed half of the universe. A ranking of 25 means the fund was in the top 25% of the universe, outperforming 75%. Above 50 is acceptable. Above 25 is excellent. High rankings over all time periods are ideal; however, it is more important to rank highly over the longer periods rather than the shorter periods. Calendar Year Returns: This section focuses on shorter periods and gauges the consistency of performance over time. It shows the calendar year returns for the fund, the investment policy and the universe percentiles. Each full year of performance represents the return from January 1 st through December 31 st. Ideally the fund has performed well in the earlier years and in the most recent years. Watch out for a trend toward underperformance in recent periods. Note the performance in different market environments. A high policy return indicates a bull market, and a low policy return indicates a bear market. All rates of return are annualized if the period for which theyare calculated exceeds one year. 4 City of Winter Springs Employees' Defined Benefit Plan and Trust Universe Comparisons 60% Lg Cap Core, 30% Hg Quality Bd, 100/0 Int'I Trailing Returns through December 31, 2006 2 Qtrs 3 Qtrs 1 Yr 2 Yr 5 Yr 6 Yr Return 8.95 89 85 %-tile 10.61 33 12.36 50 7 Yr 8 Yr 6.19 72 5.39 30 6.85 48 4.54 48 5th %-tile 11.99 12.04 16.80 11.29 11 .49 14.30 9.22 7.56 7.57 6.95 25th %-tile 10.79 10.05 14.13 9.97 10.13 13.01 7.68 5.60 4.79 5.45 50th %-tile 10.21 9.23 13.10 9.20 9.40 12.34 6.73 4.46 3.36 4.62 75th %-tile 9.59 8.15 12.03 8.67 8.80 11.67 6.05 3.82 2.73 4.02 95th %-tile 8.09 5.42 8.41 6.77 7.02 10.32 4.16 1.79 -0.04 2.46 Calendar Year Returns 2004 2003 2000 1998 Return 4.50 88 19.41 -12.21 92 55 %-tile 11 .46 14 Return 21.74 -12.62 65 5.14 9.89 %-tiIe 54 1.48 7 -6.28 57 5th %-tile 6.60 16.80 7.96 12.39 24.57 -6.62 2.64 10.98 26.10 25.91 25th %-tile 5.75 14.13 6.23 10.70 22.50 -1 0.44 -3.85 2.57 17.55 21.93 50th %-tile 5.44 13.10 5.49 9.70 21.45 -12.06 -6.10 -2.81 14.88 20.67 75th %-tile 5.14 12.03 4.86 8.83 20.58 -13.19 -6.93 -4.05 8.96 14.39 95th %-tiIe 4.45 8.41 4.09 6.90 18.69 -15.87 -13.00 -8.80 1.57 7.76 Returns are in percent. "%-tiIe" is the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is October 31,2000 to December 31,2006 5 City of Winter Springs General Employees Fixed Income Executive Summary Account Reconciliation Investment Policy 12/31/2006 Qtr A~~innjng\lal~(>),18~ .: NetFI?Ws.................... ....................1 &~. ..I~v~siihMtG/L.:...... ...... .... .... .....:. :.33 ................... . .................. .................... .................. .................... .. ~[)dtn9\l~ILJ~.. .....:...:.....:.......... '<400 2006 10/31/2000 YTD Incept Index Weight 3;:587 .:}~f +~8~a8.~~~re~~te~Md ....7Qo<~;401: ...:::............::....... ........................ .............. . ............. . ............... .............................. .............. .............................. ......'.1:4. ::::::::<:::::::651:: " .....-:-::::>:::::::::::::::::>:::>:...... ",". . ....... .. 100:00 .............. . .............. ......................... 4;4oo4,4qo.r.otal.." . ........ . ........ . ........ . ........ . ........ . ........ . ........ . 100:00 ........ . Trailing Returns through December 31,2006 1 Yr 2 Yr ............ .. . . . . . . . .. ............... Fiind ><<>>>2~83< 3 Yr 6 Yr 7 Yr 8 Yr 1 0/31/2000 9 Yr 10 Yr Incept 4 Yr 5 Yr >2i3q 3:38 +03 .. . ... ... ......... ........... ........... >)~;58 >}.~~.}.1( ..413............. ...............................>..<<<. >j.ro >3.80KllG~81>> ..... .. ... :::::::;:1~:12 :::::::::~1:~1:7: :::::::~O~92:::: ::~O:;88::::::::::::':':"" ......... . ... ................ ......................... . ........................................5:34 ......................... . ......................... . ......................... . ........................................6.05 ..................,...... . ......................... . ..............,.......... . ......................... . ......................................~9f1. ......... .............. ......... ............. ......... ............., ......... .........,.., ......... .............. .. p(jUcy.. ............ 4~3.3.... ................. . ................. . .. Qiff ................. .~1;5.0..... Calendar Year Returns 12/31 /2006 2006 Qtr YTD 2005 2003 2002 2001 2000 1999 1998 1997 2004 Fund/o.i8.2.~~\1.873J)2: ..... )/W..10A~ ../ff: Poii0t>1.244.;3$2.434.~~< }f1)O.2] ...}~~/>> . . niff>-b.46)f~o:At56>1.3.i ....... ;-1.3~b.1~ ...-():~9. ......,..... . ............ . .... ..,..... ............ . ............ . .......,.... . .......... . ......... . Returns in Up Markets Returns in Down Markets 5 Yr 3 Yr 5 Yr 1 0/31 /2000 6 Yr Incept 10/31/2000 6 Yr Incept 3 Yr ...............,.. ............ ........... ............... .. fti~~...............:...:.:.:.:. .1:-~: ............. .1:-8.. ............. .1:.8 ..................... .8.5 POlicy>...... ...........>9;{.. .>i7><..:8~6><<9:1 fund P~licy Ratl~f >,f3 >3A 1is:1 <4.0. >2;9 1 ~?f~ 4:0 .>2:9 1;34:(3 ;'4;0 <~2;9 1;34,6 ................. "........... ........... ................. ............. ........... ....,............ ............. ........... .,............... ............. ........... ............... Riiit~o .>6~>4.90~f<90.q::9a.4 ...., ....... Inception date is October 31,2000 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 6 City of Winter Springs General Employees Total Equity Executive Summary Account Reconciliation Investment Policy 12/31/2006 Qtr 2006 1 0/31/2000 YTD Incept Index ~':~06/~H~*M~8~:;:;::;.. · .:.:...p91. .............~;~M.. ..M~9:~~f~.. ................. ),itr <:<2;8~7 ....:.......:.................... .............. . .. ...... .............. ........................ 10.;115..)0.;11$ t.ot~l> .....:...... . . Weight ~~#inJ1i:n~y~I~~.>..9,~7 NetFlows............ ...............:...207 ........ . 85:00 ........ . ........ . l~:OO .................. . .................... .................. ................... ................... . . . . . . . . . . . . . . . . . . .. .................. .. JrlV~~trll~t. G/k............................. . (>(}(} .. ~~dfn{)\l~I~~ ...:............:....:... .19:,115 ........ . ........ . ........ . ........ . ........ . ........ . 100;09 Trailing Returns through December 31,2006 1 Yr 2 Yr 3Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 1 0/31/2000 9 Yr 10 Yr Incept .......... . ::F~hd> :::::::::::1:3:.:89 ........... . ........... . ........... . .. F?Ucy.:......... .17-~2 o.iff>~;5~ ..... . ........... . :........:~t80... ............ . ........... . ........... . ........... . ............ . . . . .1. . . .1. . ....}X...... ........... . ............ . .......... . A:91. . . . . . . , . . . . .., ..... ..., ... ... ...... . . 11A~f5.Zr)f5~< }.?~><>).:. .11.:91 .1?W .7.M<3,1:E><..................................... . ~OA8>O;~1>o;~6>{2t< . . ... ....... ... ....... .. ........................ ........................................:4::76 ......................... . ......................... . ......................... . ....:...................................2.49 .......,................. . ......................... . .."" -'.................. ........................................2.2]: ,......... . Calendar Year Returns 12/31/2006 2006 Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997 /~fl~<6.131~.89..5.a6 <14.1:6)r.~~ >-2~.()9 .}2.31:::< .. F?licy................................ !-25....... .1'?~.......... .6.27.. .... .12.~2. ..... .M.oP..... :-21.44 .. . .-1F.M.....::.:.....:........... <DilT-9.~~(-:t53>()A.11.44 >>..~2;41>0;65 ....1():53:..> . Returns in Up Markets Returns in Down Markets 3 Yr 5 Yr 1 0/31/2000 6 Yr Incept 3 Yr 5 Yr 1 0/31/2000 6 Yr Incept ........ . ........ . ........ . ..F>dii~Y.. ........ . ........ . ........ . "18:0: A~.~ A$.O::.. :<26.0. tft6>24~4 25~:V::>25:'7 F~rid< Fund < P<)1icy RaUQ AX ">4;5: 104;$: ~23:0 ~23] :~6;a ~27;O ~29;3 9Z:1 ~25;5 ~29;7 $$;9 ... ....... ............. ............... .................. ............ ............ ............... .................. .......,... ............. ............... ..~~tfO ...... ..................$~:Q :... .........$2:1.. ......:....101:2 ................101.;2 Inception date is October 31, 2000 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 7 City of Winter Springs General Employees Total Equity Universe Comparisons 850/0 Pure Large Cap Core & 15% International Trailing Returns through December 31,2006 2 Otrs 3 Otrs 1 Yr 2 Yr 8 Yr %-tile Return 34 5th %-tile 14.90 15.11 21.92 14.71 14.93 18.92 10.64 7.97 7.81 7.47 25th %-tile 13.33 12.31 18.07 12.62 12.94 16.91 8.81 5.24 3.69 5.69 50th %-tile 12.80 11.14 16.87 11.63 11.78 15.99 7.32 3.64 1.82 4.19 75th %-tile 11.81 9.48 15.15 10.73 10.97 15.22 6.56 2.75 0.87 3.19 95th %-tile 8.96 4.62 9.50 7.91 8.09 12.90 3.74 -0.37 -2.56 0.75 Calendar Year Returns 1999 1998 6.43 86 81 81 71 Return 7.25 52 17.42 34 6.27 63 12.32 48 30.00 -21.44 -12.84 36 56 57 %-tile 5th %-tile 8.96 21.92 10.52 15.74 32.86 -13.65 -1.20 9.55 41.24 33.54 25th %-tile 7.78 18.07 7.90 13.67 30.76 -18.70 -9.70 -1.39 26.10 27.28 50th %-tile 7.28 16.87 6.77 12.06 29.40 -21.20 -12.51 -8.39 21.79 25.32 75th %-tiIe 6.86 15.15 5.91 11.18 28.20 -22.32 -13.86 -10.39 12.70 17.37 95th %-tile 5.39 9.50 4.95 8.07 25.63 -25.86 -22.90 -15.52 3.34 8.78 Returns are in percent. "%-tiIe" is the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is October 31, 2000 to December 31, 2006 8 City of Winter Springs General Employees Domestic Equity Executive Summary Account Reconciliation Investment Policy 12/31/2006 Qtr ..~~gi#in~Y~IH~...... ...............7..~8~ .. ~~tF!{JWS..................... .................. .156 .. J~V~~t~~t (3/L............................. .44$ .. ~~dfng \lallJ~.. ..........................8,483 2006 1 0/31 /2000 YTD Incept Index Weight .7;023. <568 ....892. 8A8.~. ...................882.. .............. . .,............ . .............. . .............. . .......$;$~$ .............. . .............. . .............. . .............. . .... ....... ... .2;?7:1. ..............8;4~3 Trailing Returns through December 31,2006 1 Yr 2 Yr .... .... ............. . ...............3:98.. 8 Yr 1 0/31 /2000 9 Yr 10 Yr Incept 3 Yr 4 Yr 6 Yr 7 Yr 5 Yr ..... ....... F:u~d11?f)Jf~ .. F(jli#............1 ~.e{)........ .1~.~2... piff <4.06 <~1~96 ... .. ... ...... .. j (j.~t ..1;t~6~.49< 4~27 ........... .......... ........... . . . . . . . . .. ........... ........... ........... .......... ........... . . . . . . . . .. ........... ........... <10.4:4 )f74 >l3.192;94 <().~ >O.~8 ~q}ci 1;33 ... 0 0.00 o. 0..0 ... 0 0 0 0 0 0 0.000 ... 0 0 0 0 0 0.0.00 .0. 0 0 0 0.00.... . o. 0 0 0 0 0 0 0 0..0 .............<1:58 00000.0..0.00. o. 00000.000000 ..00.....0. 0 o. . o. 000.0.0000 .. 0 0 0 0 0.0000. ...........2;40> Calendar Year Returns 2001 2000 1999 1998 1997 12/31/2006 2006 Qtr YTD 2005 2003 2002 2004 F\1nd<>.5.63J:f!4........+~O. ..13.11 .)6.11 .-22.27<-1.61./< .. P~iicY................................ ~.~o ...... .t~.ao.. ....... .;,91...... ...10.88....... .2~'~8:..... .-2~.1~. .... -11'8:~............................... .(jiff <>1.{)1.>4:Q6>O~()12.83<-2:57AL111().~1:<< . . Returns in Up Markets Returns in Down Markets 3 Yr 5 Yr 3 Yr 5 Yr 1 0/31/2000 6 Yr Incept 1 0/31/2000 6 Yr Incept f@(j16.3>A9.f.)#'724:7 .. Policy....................... .17:.0............... ~*.~............... 24.~................... .~4.6 R~tj(}>>><<96:2 >9{2>10Q.4<>jOO;4 r.ufld F?Ii~ t~~t1Q >5;:/t ..... 0\ >5;4 >96;6 .. 0...... ~23~2. 0......0. O. 00.0. O. ~2.t5 ~25;7 ~30;3 )~4;e o . . . 0 0 . . . . . . . . . . 0 . 0 . . . . . . . . . . ~27;.1 ~29;7 91;2 .0...... . .9i:63 ..0..... 0 Inception date is October 31, 2000 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 9 City of Winter Springs General Employees Domestic Equity Universe Comparisons Pure Large Cap Core Trailing Returns through December 31,2006 2 Otrs 3 Otrs 1 Yr 2 Yr 3 Yr 4 Yr Return 10.54 81 8.04 78 11.74 79 8.26 80 10.05 60 13.86 72 %-tiIe %-tile 11.12 30 15.80 30 10.22 40 41 2.94 40 5th %-tile 14.83 15.10 20.97 12.97 13.41 16.91 9.70 7.73 7.67 7.21 25th %-tile 12.79 11.62 16.19 10.97 11.39 15.55 7.48 4.25 3.44 4.98 50th %-tile 12.51 10.75 15.48 10.02 10.29 14.47 5.99 2.74 1.00 3.26 75th %-tile 11.15 8.68 12.74 8.98 9.33 13.54 5.12 2.02 0.47 2.66 95th %-tile 7.26 2.18 4.79 5.22 5.38 10.43 1.42 -3.03 -3.92 -0.39 Calendar Year Returns 13.71 %-tile 56 12 Return 4.91 10.88 %-tile 34 29 5th %-tile 8.29 20.97 11.33 15.14 33.34 -15.55 -1 .49 13.61 35.03 34.74 25th %-tile 7.00 16.19 7.20 11.51 28.99 -20.13 -9.35 -0.20 22.80 28.4 7 50th %-tile 6.61 15.48 5.09 10.39 27.83 -22.23 -12.08 -7.39 20.27 25.44 75th %-tile 6.03 12.74 4.22 8.38 24.97 -23.39 -13.51 -9.63 16.39 18.85 95th %-tile 4.29 4.79 1.07 5.14 20.58 -26.60 -19.10 -14.67 6.13 13.04 Returns are in percent. "%-tile" is the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is October 31,2000 to December 31,2006 10 City of Winter Springs General Employees International Equity Executive Summary Account Reconciliation Investment Policy 12/31/2006 Qtr 2006 1 0/31/2000 YTD Incept Index Weight ~~9:i@in~>@8+1.4:~5 .::.::...:.::.::.::::.1::.:.::.::11.::..::842....3..::.'.::.:..::.::.::/<.:3f >r\Jet:Fll:lws:::::::>>"- .. ... .........-:-::::<::5:1: :<:::<::::::8:1:4:: ............ . ............ . ............ . ............ . ............ . ':'::::::::::::783: ..................... ................. ...................... ................ ............. .............,....... ................. ............ ..................... ............... ............. ::i~~sstm:Mt:G/L::::: :.:.:.:.:.:.: '::::::::::1:55: :: :::: :::::325: ::::: Trailing Returns through December 31,2006 1 Yr 2 Yr 3Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 1 0/31/2000 I 9 Yr 10 Yr Incept .. ... ............ . ....... .... . itJ@/~6.~51~.4f2(j.1f :J~-i:11N3~> ~f$4 ..P~lic.Y...... ......~~.~e .......~9.~t.. ....~O.41.........~4.85...... ...1~.~3..... $;31 Diff .<~()<41)O:8.f <~ri.~()>~1A4;:1:t1 0,03 .. .. . . .. .,........... . ...............8;79.. .......".... . ............. . ............. . ............. . ..........:....8:03. ............. . ........... . ............. . ............. . ..............0....7..... >>::>> . ;: .6: .......... . Calendar Year Returns 12/31/2006 2006 Qtr YTD 2005 2004 2003 2002 2001 2000 1999 1998 1997 .. Furid.......... ..................10.90.... 26:45 ........ . ........ . ........ . 26:136 ........ . ........ . ........ . >.:0:41 ........ . 1t7~ /21.5(}<~5.19-1Er64)f.1.~>/ .... .1J.()Z.. .......2?m........~~.17:......-1~.66 ..... .-~9~1 .. ........... ......... ... ..... .T~4>();80~3,9~:~0;~. <4:01..........>...... ......... ....,.....,........... .......... ..................... ......... ........."........... ..........,......... . p~li~ <1 ().4t) .:Dil'f.. . ....... ..... ... ..................0.50.... Returns in Up Markets Returns in Down Markets 3 Yr 5 Yr 1 0/31 /2000 6 Yr Incept 3Yr 5 Yr 1 0/31/2000 6 Yr Incept ..Fti1;d..........................~9..~... ..........~6.1... :.........~5.().......... ........3$.9: Fond... .. p:()Ii~y .................... .~~?.............. ~m'1................ 34.8................... .~ff'~ f'l()licy. R~t~b...1(j3:0104~Q100~7>10of R~tlQ .............. . >>3;$> >4;1: .304,1 ........ . ........ . ~2%f~25;O ........ . . . . . . . . . . ........ . ........ . ~20;()~24,8. ........ . ........ . ........ . 121;~>:>1QO;~ ~2~:~ ~23A 95:1 Inception date is October 31, 2000 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 11 City of Winter Springs General Employees International Equity Universe Comparisons 6 Yr 7 Yr 8 Yr Return %-tiIe 43 61 53 57 50 %-tile 39 20.27 49 42 15.43 45 Return 5th %-tile 20.76 19.58 35.29 31.62 29.33 35.40 27.24 20.84 14.43 20.29 25th %-tile 16.41 15.59 28.37 22.65 22.37 27:01 18.13 11.04 8.57 12.57 50th %-tile 14.85 14.02 25.65 20.11 19.75 23.88 14.83 8.24 4.67 8.72 75th %-tiIe 13.60 12.44 22.79 18.28 18.11 21.4 7 12.91 6.26 2.45 6.79 95th %-tile 11.51 8.98 18.65 15.29 15.79 19.35 10.46 3.40 -1.58 4.57 Calendar Year Returns Return 1 0.40 26.86 14.02 20.70 39.17 -15.66 -21.21 %-tile 58 39 67 39 50 59 63 5th %-tile 16.23 35.29 38.92 32.32 65.72 1.26 2.71 2.11 117.71 28.21 25th %-tile 12.06 28.37 23.76 23.60 48.59 -8.48 -10.53 -8.63 67.62 17.92 50th %-tile 10.68 25.65 16.31 19.34 38.92 -14.41 -18.53 -15.84 47.72 11.85 75th %-tile 9.75 22.79 13.13 16.57 33.20 -18.10 -23.29 -24.08 29.01 1.27 95th %-tile 8.13 18.65 9.40 12.66 27.55 -23.32 -29.32 -34.43 17.12 -30.21 Returns are in percent. "%-tile" is the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept is October 31, 2000 to December 31, 2006 12 City of Winter Springs Employees' Defined Benefit Plan and Trust Up Market Returns 25.00% w.OO% ------------------------------------- 15.00% ---------- 10.00% 5.00% 0.00% Fund (%) Policy (%) Difference (%) Ratio # Up Qtrs 0.00% -5.00% -10.00% -15.00% -20.00% Fund (%) Policy (%) Difference (%) Ratio # Down Qtrs 3 Yr 13.33 13.94 -0.61 95.62 9.00 Down Market Returns 5 Yr 15.77 17.89 -2.12 88.15 14.00 3 Yr -2.80 -2.37 -0.43 118.14 3.00 5 Yr -13.19 -15.06 1.87 87.58 6.00 6 Yr 17.66 18.69 -1.03 94.49 16.00 Incept 17.66 18.69 -1.03 94.49 16.00 6 Yr -15.45 -18.90 3.45 81.75 8.00 [EfFund (%) . Policy(%) ~ 13 Incept -14.19 -19.05 4.86 74.49 8.66 City of Winter springs Employees Defined Benefit Plan and Trust Objective Comparison City of Winter Springs Employees' Defined Benefit Plan and Trust Attributions of Returns Report Explanation Performance attribution concentrates on evaluating the effect of the manager's decisions on asset allocation and security selection. This allows the investor to see whether the manager is adding value by adjusting the actual asset allocation or by picking individual securities. This information is valuable in helping determine the amount of freedom that might be given to the manager in regard to asset allocation ranges. The result of these skills are shown for multiple time periods. The top section shows the returns for both the account and the investment policy and the results of the manager's contribution. The fund's return is thus attributed to the policy and the manager. The bottom section divides the manager's contribution into two components: asset allocation and security selection. The asset allocation effect measures the value that was added by varying the actual asset allocation from the target allocation. This is done by assuming investments, in amounts equal to the actual asset allocation weights, were made in the policy's indices so that security selection has no effect. The difference between this return and the policy's return is the asset allocation effect. The security selection is the remainder of the manager's contribution that is not explained by asset allocation. 15 City of Winter Springs Employees' Defined Benefit Plan and Trust Attribution of Returns Attribution of Performance to show Manager Contribution Policy . . . . . . . . . . . . . . . . . . . . . . . . . . ........................ . . Mah~ 'et .C6hifibOti6h ..............!;1................................. Current Quarter 5.40 ......... . ........ . ......... . . . . . . . . . . .... .." ........ . .... ... ........ . .... ... ........ . .... ... ........ . .... ... ........ . .... ... ........ . .... ... ........ . ........ . ........ . ........ . ........ . ........ . . · A);'i$ ............. .. .... ....... ............. .. .... ....... . . . .. -.. Year to Date 13.33 3 Years 9.40 5 Years 6.85 6 Years 4.54 Incept 3.76 Policy + Manager Contribution = Fund Fund 4.64 10.58 8.80 6.19 5.39 5.31 Attribution of Manager Contribution between Asset Allocation and Security Selection Asset Allocation Security Selection Current Quarter -2.86 2.10 Year to Date -7.54 4.79 3 Years -5.21 4.61 5 Years -4.04 3.38 6 Years -2.83 3.68 Incept -2.58 4.13 Asset Allocation + Security Selection = Manager Contribution 16 City of Winter Springs Employees' Defined Benefit Plan and Trust Asset Allocation Effect City of Winter Springs Employees' Defined Benefit Plan and Trust Asset Allocation vs Targets City of Winter Springs Employees' Defined Benefit Plan and Trust Asset Allocation vs Targets 80.00% 70.00% - -- -- ------- -- - ------ -- ----- - - - - - - - - - ~ - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- 60.000/0 -- -- _ _ --- ---- _ _ _ -- -------- -- ------ --- _ _ _ -- ----- --- _ ---- ---- ---- - --- ---------- ----- ------ --p --- ----- -------- ----- --- - --- ----- - ---- --- --------- ----- ---------- --- 50.000/0 __ - __ - u __ __ _ __ __ __ __ _ __ _ __ __ __ - - - __ ___ __ _ u __ __ __ __ _ _ _ __ __ __ - __ - - __ __ - __ __ __ __ __ u __ __ - - m __ __ __ __ __ __ __ - __ __ - - - -- -- -- -- - - -- - -- -- -- -- -- -- -- -- -- -- u - -- - -- - -- -- - 40.00% u___u__ - - - - - - - - - - - - - ~ - - - - - - - . - - - - - - - - - - - - -. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- 30.00%------------ 20.00% __om -------------------.----------------------------------------- --------.---------------------------------.------ ---------------------------_..-------------------.-- 10.00% ---- 0.00% M02 003 M04 J04 804 004 M05 Quarter Ending I . Int'I * Target' 006 19 City of Winter Springs Employees' Defined Benefit Plan and Trust Manager Contribution City of Winter Springs Employees' Defined Benefit Plan and Trust Quarterly Comparison Analysis ($) Period Fund Poliey Diff Nominal 9% Diff CPI + 4% I Diff Ending Oet 2000 1,292 1,292 0 1,292 0 1,292 0 Dee 2000 5,231 5,074 157 5,135 96 5,111 120 Mar 2001 5,115 4,781 335 5,340 -224 5,317 -201 Jun 2001 5,551 5,115 436 5,603 -52 5,575 -24 Sep 2001 5,267 4,807 460 5,894 -627 5,810 -543 Dee 2001 5,899 5,331 568 6,193 -294 5,983 -85 Mar 2002 6,099 5,545 554 6,527 -428 6,314 -216 Jun 2002 5,877 5,263 614 6,833 -956 6,584 -707 Sep 2002 5,534 4,865 669 7,183 -1,649 6,890 -1,356 Dee 2002 5,875 5,359 516 7,524 -1,649 7,141 -1,265 Mar 2003 5,927 5,445 482 7,886 -1,959 7,540 -1,613 Jun 2003 6,647 6,253 394 8,228 -1,580 7,761 -1,113 Sep 2003 7,040 6,606 434 8,628 -1,588 8,120 -1,080 Dee 2003 7,884 7,398 486 9,005 -1 , 120 8,347 -463 Mar 2004 8,355 7,789 566 9,426 -1,071 8,790 -435 Jun 2004 8,574 8,025 549 9,840 -1,266 9,192 -618 Sep 2004 8,942 8,418 525 10,462 -1,520 9,699 -756 Dee 2004 10,039 9,366 673 11,015 -977 10,137 -98 Mar 2005 10,187 9,479 708 11,505 -1,318 10,651 -464 Jun 2005 10,551 9,898 654 12,016 -1 ,465 11,090 -539 Sep 2005 11,251 10,651 600 12,735 -1,484 11 ,908 -657 Dee 2005 11,810 11,172 638 13,334 -1,524 12,223 -413 Mar 2006 12,507 11,892 614 13,980 -1 ,473 12,897 -391 Jun 2006 12,701 12,164 537 14,654 -1,954 13,603 -902 Sep 2006 13,527 13,069 458 15,273 -1,746 14,034 -507 Dee 2006 14,538 14,159 379 15,985 -1 ,447 14,478 59 All dollar values are shown in thousands. 21 City of Winter Springs Employees' Defined Benefit Plan and Trust Quarterly Comparison Analysis (0/0) Period Fund Policy Diff Nominal 9% Diff CPI + 4% Diff Ending Mar 2001 -3.96 -7.57 3.61 2.18 -6.14 2.19 -6.15 Jun 2001 5.65 3.98 1.67 2.18 3.47 2.09 3.56 Sep 2001 -7.97 -9.10 1.13 2.18 -10.15 1.18 -9.15 Dee 2001 8.68 7.28 1.40 2.18 6.50 0.09 8.59 Mar 2002 0.03 0.29 -0.26 2.18 -2.15 2.19 -2.16 Jun 2002 -6.20 -7.88 1.68 2.18 -8.38 1.69 -7.89 Sep 2002 -9.07 -11.13 2.06 2.18 -11.25 1.59 -10.66 Dee 2002 2.90 6.43 -3.53 2.18 0.72 0.98 1.92 Mar 2003 -2.44 -2.05 -0.39 2.18 -4.62 2.80 -5.24 Jun 2003 9.23 11.64 -2.41 2.18 7.05 0.69 8.54 Sep 2003 2.59 2.12 0.47 2.18 0.41 1.79 0.80 Dee 2003 9.22 9.02 0.20 2.18 7.04 0.49 8.73 Mar 2004 3.11 2.26 0.85 2.18 0.93 2.59 0.52 Jun 2004 0.10 0.33 -0.23 2.18 -2.08 2.19 -2.09 Sep 2004 -0.49 -0.19 -0.30 2.18 -2.67 1.08 -1.57 Dee 2004 8.52 7.31 1.21 2.18 6.34 1.18 7.34 Mar 2005 -0.98 -1.42 0.44 2.18 -3.16 2.59 -3.57 Jun 2005 1.01 1.66 -0.65 2.18 -1.17 1.69 -0.68 Sep 2005 2.33 3.00 -0.67 2.18 0.15 3.20 -0.87 Dee 2005 2.09 1.86 0.23 2.18 -0.09 -0.01 2.10 Mar 2006 2.89 3.26 -0.37 2.18 0.71 2.59 0.30 Jun 2006 -1.35 -0.78 -0.57 2.18 -3.53 2.59 -3.94 Sep 2006 4.12 4.94 -0.82 2.18 1.94 0.98 3.14 Dee 2006 4.64 5.40 -0.76 2.18 2.46 0.49 4.15 Incept. 5.31 3.76 1.55 9.00 -3.69 6.48 -1.17 Returns for periods exceeding one year are annualized. 22 City of Winter Springs Employees' Defined Benefit Plan and Trust Risk Measures Report Explanation The evaluation of a fund's performance should extend beyond return to encompass measures of risk. The next two pages are used to determine the level of risk to which the fund has been exposed, and whether the return has been commensurate with the risk taken. All measures are calculated for both the fund and the policy as well as the difference between the two. Up to four time periods are evaluated depending on the age of the fund. # Of Negative Qtrs/# Of Positive Qtrs: Number of negative quarters shows the number of quarters in which the return was less than zero, and the number of positive quarters is the number of quarterly returns which were greater or equal to zero. Batting Average: The batting average is a measure of consistency. It shows the percent of the quarters the fund has beaten the policy and the percent of the quarters the policy has beat the fund. A high average for the fund (e.g. over 50) is desirable, indicating the fund has beaten the policy frequently. Worst Quarter/Best Quarter/Range: The worst quarter is the lowest quarterly return experienced during the period, a measure of downside risk. The best quarter is the highest quarterly return, and the range is the difference of the high and low, and indicates dispersion. Standard Deviation: Standard deviation measures the total volatility of the fund, by measuring dispersion. Higher standard deviation indicates higher risk. If the quarterly or monthly returns are all the same the standard deviation will be zero. The more they vary from one another, the higher the standard deviation. Thus, it measures uncertainty, which is a measure of risk. AlphalBetalR-Squared: If the policy is appropriate, then the alpha should be positive, the beta close to one, and the r-squared should be high. Beta measures risk relative to the policy. A beta of 1 suggests risk equivalent to the policy. Higher betas indicate higher relative risk. A beta of 1 .2 indicates 20% more risk than the policy. The alpha measures the return adjusting for beta. The higher the alpha, the better. R-squared measures the relationship between the policy and the fund. A high r-squared means the returns of the fund can largely be explained by movements of the policy. The higher the r-squared, the more reliable the alpha and the beta. R-squared may range from 0 to 100. Beta, alpha and r-squared are derived from regression analysis using the fund and policy returns as the dependent and independent variables respectively. Roughly, one would expect the fund's performance to equal the return of the policy multiplied by the beta plus the alpha. Sharpe Ratio/Treynor Ratio: The Sharpe and Treynor ratios are similar. The Sharpe ratio is the excess return per unit of total risk as measured by standard deviation. The Treynor ratio is the excess return per unit of market risk as measured by beta. Both of these should be compared against the corresponding value for the policy. Higher numbers are better, indicating more return for the level of risk that was experienced. 23 City of Winter Springs Employees' Defined Benefit Plan and Trust # of Negative Qtrs # of Positive Qtrs Batting Average Worst Qtr Best Qtr Range Worst 4 Qtrs Standard Deviation Beta Annualized Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio ..........Fund.. 3.00 9.00 33.33 -1.35 8.52 9.87 4.50 5.50 1.07 -0.93 0.93 1.06 5.43 1.47 -0.41 . . :<p~liCy. .... 3.00 9.00 66.67 -1.42 7.31 8.73 5.14 5.02 1.00 0.00 1.00 1.28 6.41 0.00 Risk Measures .. Diff> 0.00 0.00 -33.34 0.07 1.21 1.14 -0.64 0.48 0.07 -0.93 -0.07 -0.22 -0.98 1.47 ..........Fund. ........... . ........ . PI' Diff .......... . >. ().l:GY: # of Negative Qtrs 8.00 8.00 0.00 # of Positive Qtrs 16.00 16.00 0.00 Batting Average 50.00 50.00 0.00 Worst Qtr -9.07 -11.13 2.06 Best Qtr 9.23 11.64 -2.41 Range 18.30 22.77 -4.47 Worst 4 Qtrs -14.38 -14.65 0.27 Standard Deviation 7.74 9.39 -1.65 Beta 0.78 1.00 -0.22 Annualized Alpha 1.18 0.00 1.18 R-Squared 0.89 1.00 -0.11 Sharpe Ratio 0.36 0.20 0.16 Treynor Ratio 3.53 1.90 1.63 Tracking Error 3.28 0.00 3.28 Information Ratio 0.26 . . ............ . ........... . .........POlicy.:.. Diff 5Yr: ............ . Flind< ............ . ............ . .......... . .. . . . . . . . . . . . . # of Negative Qtrs 6.00 6.00 0.00 # of Positive Qtrs 14.00 14.00 0.00 Batting Average 40.00 60.00 -20.00 Worst Qtr -9.07 -11.13 2.06 Best Qtr 9.23 11.64 -2.41 Range 18.30 22.77 -4.47 Worst 4 Qtrs -14.38 -14.65 0.27 Standard Deviation 7.14 8.43 -1.29 Beta 0.80 1.00 -0.20 Annualized Alpha 0.20 0.00 0.20 R-Squared 0.89 1.00 -0.11 Sharpe Ratio 0.54 0.53 0.01 Treynor Ratio 4.80 4.50 0.30 Tracking Error 2.87 0.00 2.87 Information Ratio -0.23 ................ . ......... . ........... . ........... . ........ . . :h'lcept......:............ ......... . Fd .........PQHcY. .Diff ........ . >......un ... . . # of Negative Qtrs 8.00 8.66 -0.66 # of Positive Qtrs 16.66 16.00 0.66 Batting Average 51.34 48.66 2.68 Worst Qtr -9.07 -11.13 2.06 Best Qtr 9.23 11.64 -2.41 Range 18.30 22.77 -4.47 Worst 4 Qtrs -14.38 -14.65 0.27 Standard Deviation 8.08 9.50 -1 .42 Beta 0.79 1.00 -0.21 Annualized Alpha 1.68 0.00 1.68 R-Squared 0.87 1.00 -0.13 Sharpe Ratio 0.32 0.11 0.21 Treynor Ratio 3.25 1.02 2.23 Tracking Error 3.58 0.00 3.58 Information Ratio 0.43 24 City of Winter Springs Employees' Defined Benefit Plan and Trust Return vs Risk through December 31, 2006 10.00% 9.00% 8.00% * Int'I A 7.00% n n u a ?+~ I 6.00% LB Agg. i z e * d Fund 5.00% R e t u r 4.00% n 3.00% * 3 Mo TBill 2.00% * S&P 500 1 .00lOO% I 5.00% I 10.00% Risk (Annualized Std Dev) 1-+-- Policy I I 15.00% 20.000!c 25 City of Winter Springs Employees' Defined Benefit Plan and Trust Return vs Risk through December 31, 2006 3 Years 30.00% 25.00% 20.00% * Int'I R R e e t 15.00% t u u r r n 10.00% * n * S&P-500 s Fund s 5 Years 25.00% 20.00% 15.00% * Int'I 10.00% 5.00% -- * I.. * 5.00% * h,nd S&P 500 LB Agg. *3 Mo TBill 0.000/6.00% 5.0~% 1 O.~O% 15.~0% Risk (Annualized Std Dev) 20.000!c * * '3 Mo TBill LB A~ g. 0.00% I I I I I I I I I 1.00% 3.00% 5.00% 7.00% 9.00% 11.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% Risk (Annualized Std Dev) * Int'l Inception 10.00% 9.00% 8.00% * Int'I 7.00% R e 6.00% * t LB Agg. u * 5.00% F nd r n s 4.00% 3.00% * 3 Mo TBill 2.00% * 1.000/6.00% -~ ~&P 500 5.00% 10.00% 15.00% 20.00% Risk (Annualized Std Dev) 6 Years 10.00% 9.00% 8.00% R 7.00% e t 6.00% u r n 5.00% s 4.00% * LB Ag~ Fl nd 3.00% * * S&P 500 2 0 3 Mo TBill I I .00 Y6.00% 5.00% 10.00% 15.00% 20.00% Risk (Annualized Std Dev) 1- t- Policy I 26 Policy: First Objective: Second Objective: Universe Data: City of Winter Springs Employees' Defined Benefit Plan and Trust 10/3112000-09/3012003 65.00 S&P 500 30.00 Lehman Aggregate Bond 5.00 MSCI EAFE 1 % 1/2003-12/31/2006 60.00 S&P 500 30.00 Lehman Aggregate Bond 10.00 MSCI EAFE 10/31/2000-12/31/2006 Annual Return of9.00% 10/3112000-12/31/2006 100.00 US Consumer Price Index + 4.00 annual adder 60% Lg Cap Core, 30% Hg Quality Bd, 10% Int'I 10/31/2000-09/3012003 30.00 High Quality Bond 65.00 Pure Large Cap Core 5.00 International Equity 10/0112003-12/31/2006 30.00 High Quality Bond 60.00 Pure Large Cap Core 10.00 International Equity 27 Bogdahn Consulting, LLC. CONTRIBUTIONS/WITHDRAWALS DB Plan & Trustfor Employees of the City of Winter Springs Sun trust Trusco Capital Mgmt. From 10-01-06 To 12-31-06 Tran Trade Settle Code Date Date Security CONTRIBUTIONS Ii 10-06-06 10-06-06 Cash EE Ii 10-06-06 10-06-06 Cash ER Ii 10-20-06 10-20-06 Cash EE Ii 10-20-06 10-20-06 Cash ER Ii 11-01-06 11-01-06 Cash EE Ii 11-03-06 11-03-06 Cash ER Ii 11-17-06 11-17-06 Cash EE Ii 11-17-06 11-17-06 Cash ER Ii 12-04-06 12-04-06 Cash EE Ii 12-04-06 12-04-06 Cash ER Ii 12-18-06 12-18-06 Cash EE Ii 12-18-06 12-18-06 Cash ER WITHDRAWALS 10 10-02-06 10-02-06 Cash Benefit payments 10 10-04-06 10-04-06 Cash Lump sum distribution to participant 10 11-01-06 11-01-06 Cash Benefit Payments 10 11-30-06 11-30-06 Cash Benefit payments 10 12-01-06 12-01-06 Cash Benefit payments 10 12-08-06 12-08-06 Cash Participant lump sum distribution 10 12-19-06 12-19-06 Cash Participant lump sum distribution EXPENSE ACCOUNTS Amount Quantity 12,527.70 52,198.79 12,815.58 53,398.37 12,898.18 53,742.54 13,652.55 56,885.70 13,931. 72 58,048.84 17,000.84 70,836.66 427,937.47 14,419.55 1,042.65 14,419.55 5,410.35 14,419.55 185.51 2,955.45 52,852.61 0.00 Broker Code Conunission Bogdahn Consulting, LLC. CONTRIBUTIONS/WITHDRAWALS DB Plan & Trustfor Employees of the City of Winter Springs Suntrust Trusco Capital Mgmt. From 10-01-06 To 12-31-06 Security Amount Quantity Broker Code Commission Tran Trade Code Date Settle Date AFTER FEE PERFORMANCE EXPENSE ACCOUNTS dp 11-09-06 11-09-06 Administration Fee Suntrust Bk Retirement Services 22,718.12 22,718.12 PORTFOLIO NET TOTAL 352,366.74 EXPENSE ACCOUNTS PAID BY CLIENT 0.00 AFTER FEE PERFORMANCE EXPENSE ACCOUNTS PAID BY CLIENT 0.00 GRAND TOTAL 352,366.74 2 Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL DB Plan & Trust for Employees of the City of Winter Springs Suntrust Trusco Capital Mgmt December 31,2006 Quantity Security Money Markets Cash & Equiv. 202,585 SuntlUst Retirement Reserve Fund (Excluding Reinvested Divs.) Unit Total Market Pet. Cost Cost Price Value Ga.in/Loss Assets -- 1.00 202,585.17 1.00 202,585.17 0.00 1.4 -- 202,585.17 202,585.17 0.00 1.4 -- 22,644.61 22,644.61 0.00 0.2 11,5]7,378.01 14,537,642.31 3,020,264.30 100.0 TOTAL PORTFOLIO 2 BOGDAHN CONSULTING, LLC. simplifying your illvestmellt & fiduciary decisions FIRM UPDATE JANUARY 2007 MESSAGE FROM JOE BOGDAHN 2006 was an exciting year for our fIrm, and I would like to take this opportunity to update you on our progress and thank you for your support. Thanks to your kind referrals and references, we are growing steadily. In addition, many of your fellow trustees are beginning to recognize the value of a truly independent consultant, an awareness highlighted by several of our competitor's business practices coming under regulatory and legal scrutiny. I believe that the childhood jingle of 'make new friends, but keep the old - for one is silver and the other gold' applies in our business today as well, and in order to represent additional boards we must expand our fum so that we do not dilute the service we provide to our current accounts. Our goal remains to provide our clients with the highest level of objective, unbiased investment consulting services possible, and we know that the key to achieving this is having bright and ethical people working together toward this common goal. AP. a result, my top priority is assembling the best team possible to serve our clients. I am well pleased with our progress. Most of you have met my partner Mike Welker. Mike has provided excellent leadership for our clients and the finn. Mike is a CF A charter holder and has his MBA in Finance. He also teaches advanced classes at the FPPT A schools. As we added new clients, Mike and I faced a dilemma common to growing organizations - expand our client servicing capabilities or bolster our support staff. I am pleased that we have been able to do both. Last year Celeste Richardville joined our office team, assisting Bill Stark and Donna Sullivan in reviewing and generating reports, as well as providing administrative support. Bryan Bakardjiev joined our team as our Senior Portfolio Analyst and Investment Consultant. Bryan is in the CF A program and has six years investment experience, and is coordinating our efforts to streamline our data gathering operations. He will also oversee the updating of our infonnation technology programs, and will work closely with me serving our public clients. This past January, we purchased Sentinel Fiduciary Services, an independent registered investment advisory finn serving the defined contribution market. In addition to diversifying our service offerings and our client base, the acquisition also brought into the company several outstanding people, including Rob Little. A veteran of the consulting industry, Rob is both a CFA charter holder and a CPA, and serves our fIrm as Director of Research, heading up investment manager due diligence and authors our investment overviews. In conjunction with the Sentinel acquisition, we added Dave West and Herb Whitehouse to our team, signifIcantly strengthening our capabilities. Dave, a CF A charter holder, brings over 20 years of investment management and consulting experience to the finn. He serves as our Chief Investment Officer and Senior Consultant, and co-chairs our Investment Committee with Rob. Dave also teaches at FPPT A. Herb serves as our Chief Fiduciary Officer and Director of Compliance. Herb is an attorney who led the team at J&J in the late seventies when they 'created' the first 401(k) plan. He has also served as Secretary to the named fiduciaries at Chase. A Master Pension Fiduciary, Herb works closely with the attorneys serving our ERISA clients. Mike and I are excited to announce that Rob, Dave and Herb are now partners in the fIrm. While my primary focus remains the Florida municipal pension market, we have expanded into the Midwest, with offices in Chicago and Milwaukee. (Crazy as it seems, some people actually elrjoy the snow and ice!) Our Midwest operations are anchored by Mike Bostler, Dick Boggs and John Mellinger. With a client mix of endowment, foundation, association and Taft-Hartley clients, they add a fresh perspective to our approach to serving our clients. These three consultants have over 65 combined years of consulting experience, and are a tremendous resource to our Florida team. Our fIrm now has eight talented consultants supported by a seasoned team of nine operations folks - a diverse group of individuals bringing together their unique talents working toward a common objective - simplifyillg our client's investment & fiduciary decisio1ls. We are currently interviewing for an additional consultant to assist us with our growth, and are looking to enhance our reporting capabilities by hiring a senior level portfolio analyst mid year. I am proud of our team, and am honored to be associated with each of them. Thank you again for being part of our progress. I encourage you to visit our offices if you find yourself in the Winter Haven area. Please let me know if you have any suggestions or comments, as we are always looking for additional ways to better serve our clients. I look forward to seeing you soon, and Happy New Year! - 340 West Central Avenue · Suite 300 · Winter Haven~ Florida 33880 Telephone (863)293-8289. Facsimile (863) 292-8717 BOGDAHN CONSULTING, LLC. simplifying your investment decisions PRIVACY NOTICE As required by the Securities and Exchange Commission Regulation S-P, this is a notification regarding the collection, use, and protection of personal information furnished to us by our clients. OUR COMMITMENT TO YOUR PRIVACY BOGDAHN CONSULTING is committed to protecting the confidentiality of the information provided to us by our clients. To the extent that we may collect nonpublic personal information about our clients or their plan participants, we will not share this information with third parties except as described below. HOW WE PROTECT INFORMATION Our employees are required to protect the confidentiality of information and to comply with our established policies. We also maintain physical, electronic and procedural safeguards to protect information. DISCLOSURE OF INFORMATION We may disclose information when we believe it necessary for the conduct of our business, or where disclosure is required by law. For example, information may be disclosed for audit or research purposes, to attorneys or other professionals, or to law enforcement and regulatory agencies, for example, to help us prevent fraud. In addition, we may disclose information to third party service providers to enable them to provide business services for us, such as performing computer related or data maintenance/processing services, or to facilitate the processing of transactions requested by you. Information may also be disclosed to other professional advisors engaged by you, such as accountants, actuaries, custodians and attorneys. Except in these specific, limited situations, we will not make any disclosures of information to other companies who may want to sell their products or services to you. For example, we do not sell client lists and we will not sell your name. ACCESS TO INFORMATION If you desire to review any file we maintain for your information, please contact our office. Our Form ADV is available upon request. Please contact us for a free copy. 340 West Central Avenue. Suite 300. Winter Haven, Florida 33880 Telephone (863)293-8289 . Facsimile (863) 292-8717