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Home My WebLink About2009 01 27 Winter Springs General Quarterly Report Ending December 31, 2008Defined Benefit Plan & Trust for Employees of The City of Winter Springs 4th Quarter 2008 W4~~'~f.1~~7C;C7,~1I-IN~:RC7[JP.CC7M THE BOGDAHN GROUP sifraplifysxg- your ifauestment ~rstd fedxrci~r~+ tlecisorxs The Market Environment 4t" Quarter 2008 A Time to Remember a Quarter to Forget Unfortunately for long-term investors, the 4t" quarter of 2008 is destined to be analyzed in a negative historical context well into the future as many of the world's economic ills seemed to crescendo into a global economic crisis. Although we are all familiar with negative returns in investment portfolios, very few of us have experienced such steep declines in value across a broad set of equity asset classes in a short period of time. Despite much of the bond market remaining mired in a dysfunctional trading environment, fixed income investments reversed last quarter's negative results and served as a buffer against the negative performance experienced in equity portfolios. On the economic front, although it didn't come as a revelation to market participants, during the quarter the NBER (National Bureau of Economic Research) announced that the U.S. officially entered a recession back in December of 2007. U.S. equities experienced dramatic declines during the 4t" quarter. Although each of the equity indices we track was moderately positive for the month of December, the negative performance experienced during October and November would serve to cast the quarter's results among the worst on record. The Russell 3000 broad market index posted a return of -22.8% for the quarter, which was representative of the level of negative performance that most equity investors experienced during the period. There were very few places to hide as nine of the ten economic sectors of the Russell 3000 index posted returns of greater than -10% for the quarter. On a relative basis, sector performance was led by telecommunications services, which posted a return of -5.3%, but only represented 3.5% of the index at the end of the quarter. The largest declines were represented by materials, consumer discretionary, financials and information technology sectors, each of which were down more than -25% for the quarter. In the large cap space, the S&P 500 and Russell 1000 posted returns of -21.9% and -22.5% respectively. The limited safety that some investors may have perceived in larger cap names could account for the weaker -27.3% return of the Russell MidCap Index and the small cap Russell 2000 index's return of -26.1% for the quarter. Although value investments managed to outpace growth style benchmarks at each capitalization level, there was not much disparity in absolute results between the two styles as returns were universally disappointing. At the composite level, the broad market Russell 3000 Value Index fell by -22.4% with the Russell 3000 Growth Index posting asimilar -23.2%. Large cap issues, as measured by the Russell 1000 index, returned -22.2% for Value and -22.8% for Growth. In the narrowest spread of the quarter, the Russell MidCap Value index returned -27.2% vs. -27.4% for the Russell MidCap Growth index. Small cap issues represented the largest style-based performance band for the quarter with the Russell 2000 Value index returning -24.9% and the Russell 2000 Growth index returning -27.5%. Page 2 of 39 The concept of the world's market "decoupling" from the weakness of the U.S. economy was certainly an attractive prospect for domestic investors committing assets to international markets. Unfortunately, the idea, whether overestimated or simply wrong, did not materialize to shield international results from negative performance. The MSCI-EAFE index declined sharply during the quarter in both U.S. dollars (-19.9%) and as measured in local currency (-18.5%). Although not as significant as some recent quarters, the U.S. dollar's broad strength and perceived safety benefitted hedged international portfolios. Within the 21 country index, Japan, one of the heaviest weighted in the index, and also considered a safe haven currency, was the best performing country with a return of -9.0% for the quarter. Other major countries in the index including the United Kingdom, France, and Germany, were each down in excess of -25%. The index also had a handful of countries down more than -40% (Austria, Greece, Ireland and Norway). Much like the domestic style indices, there was little disparity among international style results during the quarter with the MSCI-EAFE Value index returning -19.7% and the MSCI- EAFE Growth index posting asimilar -20.1%. Beyond the developed countries of the MSCI-EAFE index, the MSCI Emerging Market Index returned -27.6% in U.S. dollars and -22.0% in local currency. For the year, the Emerging Market Index posted the weakest performance among the world's major equity indices with a return of -53.2% in U.S. dollars. Although far from functioning normally, the government and monetary authorities of the world worked in tandem to bolster the world's credit and financial systems during the quarter. This unprecedented level of intervention was necessary to assure market participants that the world's markets remained "functional", although arguably still on life support. Aided by aggressive Federal Open Market Committee (FOMC) and Treasury maneuvering in the form of a near -0% Fed funds rate and at least a dozen targeted relief programs, domestic fixed income markets managed to post positive results for the quarter. Marking the end of an era, the Lehman Aggregate index was renamed the Barclays Capital Aggregate index during the quarter and posted a return of 4.6%. Much like last quarter, government obligations led the way with a Barclays Government index returning 8.1% for the quarter. Although many of the government's programs may have long-term inflationary consequences, the -3.5% performance of the Barclays TIPS index illustrates that inflation is not a near-term concern for investors. Outside of government issues, the Barclays Mortgage index returned 4.3% for the quarter; and the proxy for corporate bonds, the Barclays U.S. Credit index, posted a return of 4.0%. Perceived risks were clearly evident outside of investment grade issues with the Merrill Lynch High Yield Master II index returning -17.6% for quarter. ~~ B4GDAHN ~ GROUP The Market Environment Major Market Index Performance Period Ended: December 31, 2008 MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russe113000 Russe111000 Russell MidCap Russe112000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays US Credit Quarter Performance as% s.1 % 4.3 a.o % I 3mos. T-Bill 0.2 % -40.0% -30.0% -20.0% -10.0% MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Five Year Annualized Performance 0.0% 10.0% 20.0% Year-to-Date Performance MSCI EAFE -43.1 MSCI Emerg. Mkts. -53.2% S&P 500 -37.5% Russell 3000 -37.3% Russell 1000 -37s% Russell MidCap -41.5% Russell 2000 -33.s% Barclays US Agg. 5.2% Barclays US Gov. 12.a% Barclays MBS Fixed s.3% Barclays US Credit -3.1 3mos. T-Bill 2.1 -75.0% -60.0% -45.0% -30.0% -15.0% 0.0% 15.0% 30.0% MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays US Credit Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays US Credit 3mos. T-Bill Page 3 of 39 3mos. T-Bill Ten Year Annualized Performance 1.2% 9.3 -1.4% -o.s % -1.1 3.2 3.0 5 .6 s.2 % 6.0 4.9 3.5 -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% -3.0% 0.0% 3.0% 6.0% Source: MSCI Capital Markets, Russell Investments, Barclays Capital & Bogdahn Consulting, LLC. 9.0% 12.0% ~~_ BQC.xD1~HN ~` GROUP The Market Environment Long-Term Major Market Index Performance Period Ended: December 31, 2008 Fifteen Year Annualized Performance' MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russel 12000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays US Credit 3mos. T-Bill ~ s.as % ] 6.36 s.a~ % ~.~o% 5.89 6.18% 6.50 ] 6.44 i.81 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% Twenty-Five Year Annualized Performance MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays US Credit 3mos. T-Bill Twenty Year Annualized Performance MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays US Credit 3mos. T-Bill 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% Thirty Year Annualized Performance I MSCI EAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays US Credit 3mos. T-Bill s.ao % 10.96 12.40% i o.80 % 8.83 8.99 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 0.00% Source: MSCI Capital Markets, Russell Investments, Barclays Capital & Bogdahn Consulting, LLC. Page ~ of 39 6.38 3.00% 6.00% 9.00% 12.00% 15.00% ""~ ~.f'III. ~ `; B(~GDAHN ~ GROUP The Market Environment Russell Style Index Performance Period Ended: December 31, 2008 Year-to-Date Performance Page 5 of 39 3000 Value 30001ndex 3000 Growth 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCaplndex MidCap Growth 2000 Value 20001ndex 2000 Growth -35.0% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% Five Year Annualized Performance 1000 Value 10001ndex 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 20001ndex 2000 Growth -oa % -z.o % -3.3 -o.s% -z.o % -3.4 -o,~ % 0.3 -2.3 0.3 -o.s % -z.a % 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCaplndex MidCap Growth 2000 Value 20001ndex 2000 Growth -50.0% -40.0% -30.0% -20.0% Ten Year Annualized Performance 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCaplndex MidCap Growth 2000 Value 20001ndex 2000 Growth -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% Source: Russell Investments ~"'~ it u`. BQGDAHN `_ ` GROUP Quarter Performance -10.0% 0.0% The Market Environment 4t" Quarter & Year-to-Date GICS Sector Performance & (Year-End Sector Weight) Period Ended: December 31, 2008 Ru ssel 13000 ^YCTD Energy (12.1%) Materials (3.4%) Industrials (11.7%) Consumer Disc (9.1%) Consumer Staples (11.4%) Health Care (14.5%) Financials (14.6%) Info Technology (15.4%) Telecom Services (3.5%) Utilities(4.4%) ^YCTD Energy (12.8%) Materials (3.3%) Industrials (11.2%) Consumer Disc (8.9%) Consumer Staples (12.0%) Health Care (14.5%) Financials (13.8%) Info Technology (15.4%) Telecom Services (3.6%) Utilities(4.4%) -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% Rusell MidCap Russe112000 QTR Energy(6.8%) ~o.s% ^YTD -sa.~ % Materials (5.4%) 3~.a/ -ao.8 % Industrials (13.0%) -2a.~ -az.s % Consumer Disc (15.4%) -30.a% -46.3 Consumer Staples (7.0%) -2a~ -28.5 Health Care (9.1%) -2a.2/ 33.2 Financials (18.8%) -29'8 -42.5 Info Technology (12.8%) -27'7 -46.2 Telecom Services (2.2%) -2a.~ X2.3% Utilities(9.5%) -11'S~ -33.2 -65.0% -55.0% -45.0% -35.0% -25.0% -15.0% -5.0% Source: Thompson Financial Page 6 of 39 ^QTR Energy(4.4%) ^YTD Materials (3.7%) Industrials (16.9%) Consumer Disc (11.0%) Consumer Staples (3.9%) Health Care (15.3%) Financials (23.4%) Info Technology (15.8%) Telecom Services (1.2%) Utilities(4.4%) ', Russell 1000 -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% I'If~,E ~ _ : BOGDAHN GROUP The Market Environment Domestic Credit Sector & Broad Market Maturity Performance & Rate Comparison Period Ended: December 31, 2008 Quarter Performance AAA AA A BBB <BBB 1-3 Yr 1-5Yr 1-10 Yr 10+ Yr 10.6 6.4 -1rs% -5.1 z.a % 3.1 4.1 Year-to-Date Performance AAA AA A BBB <BBB 4.7 -0.3 _7 1.1% r -26.4 1-3 Yr 1-5Yr 1-10 Yr 10+ Yr -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 2008 Market Rates 6.00 Fed Funds Rate -TED Spread -3-Month Libor 5.00 4.00 3.00 2.00 1.00 0.00 Jan-O8 Dec-08 Source: Merrill Lynch ,Mortgage-X.com & US Department of Treasury Page 7 of 39 -35.0% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Treasury Yield Curve 6.00 ~ 12/31 /2007 X6/30/2008 5.00 0 9/30/2008 ~ 12/31 /2008 4.00 O 3.00 O O 2.00 O O O 1.00 O O 0.00 mo 3mo 6mo 1yr 2yr Syr Syr Tyr 10yr 20yr 30yr ~~ B(~GDAHN ~` GROUP The Market Environment US Business Cycle Expansions and Contractions Period Ended: December 31, 2008 tR F'. a .^'.: . gc.^' ,. s i a s. `.. s $. ; ,._y C , December 1854 (IV) -- -- -- -- June 1857(11) December 1858 (IV) 18 30 48 -- October 1860(111) June 1861 (III) 8 22 30 40 April 1865(1) December 1867 (I) 32 46 78 54 June 1869(11) December 1870 (IV) 18 18 36 50 October 1873(111) March 1879 (I) 65 34 99 52 March 1882(1) May 1885 (II) 38 36 74 101 March 1887(11) April 1888 (I) 13 22 35 60 July 1890(111) May 1891 (II) 10 27 37 40 January 1893(1) June 1894 (II) 17 20 37 30 December 1895(IV) June 1897 (II) 18 18 36 35 June 1899(111) December 1900 (IV) 18 24 42 42 September 1902(IV) August 1904 (III) 23 21 44 39 May 1907(11) June 1908 (II) 13 33 46 56 January 1910(1) January 1912 (IV) 24 19 43 32 January 1913(1) December 1914 (IV) 23 12 35 36 August 1918(111) March 1919 (I) 7 44 51 67 January 1920(1) July 1921 (III) 18 10 28 17 May 1923(11) July 1924 (III) 14 22 36 40 October 1926(111) November 1927 (IV) 13 27 40 41 August 1929(111) March 1933 (I) 43 21 64 34 May 1937(11) June 1938 (II) 13 50 63 93 February 1945(1) October 1945 (IV) 8 80 88 93 November 1948(IV) October 1949 (IV) 11 37 48 45 July 1953(11) May 1954 (II) 10 45 55 56 August 1957(111) April 1958 (II) 8 39 47 49 April 1960(11) February 1961 (I) 10 24 34 32 December 1969(IV) November 1970 (IV) 11 106 117 116 November 1973(IV) March 1975 (I) 16 36 52 47 January 1980(1) July 1980 (III) 6 58 64 74 July 1981(111) November 1982 (IV) 16 12 28 18 July 1990(111) March 1991 (I) 8 92 100 108 March 2001 (I) November 2001 (IV) 8 120 128 128 December 2007 (IV) ? ? 73 81 AVERAGE, ALL CYCLES Page 8 of 39 Source: NBER 1854-2001 (32 cycles) 17 38 55 56* 1854-1919 (16 cycles) 22 27 48 49** 1919-1945 (6 cycles) 18 35 53 53 1945-2001 (10 cycles) 10 57 67 67 31 cycles, x'15 cycles ~~ B4GDAHN ~ GROUP Total Fund Portfolio December 31, 2008 September 30, 2008 51~,~60,582 December 31, 2008:513,620,278 Segments Market Value Allocation Segments Market Value Allocation ~5) ~%) ~5) ~%) ^ Domesric Equit<° 6,966,828 X4.8 ^ Domestic Equity- 5,350.12 39.3 ^ Intei7~~rional Egiutc~ 1,7=15,816 11.2 ^ Intei7~arional Egiutti 1,353,=107 99 ® Domestic Fred Income 5,16~,~06 33.2 ^ Domestic Filed Income 528,569 38.5 ^ Real Estate 988,399 6.~ ^ Real Estate 90=t,0~2 6.6 ^ CashEqui~~alent 695,13 ~.~ ^ CashEgni~~•alent 76,136 5.6 Page 9 of 39 ~~ $C}GDAHN ~' GxaUP Total Fund Portfolio December 31, 2008 September 30, 2008: $1~,~60,.582 December 31, 2008: $13,620,278 Mxna~er Marhet Value Allocation Manx;er Marhet Value Allocation ^ Galliard Core Filed Portfolio ~,2~2,77=t 27.3 ^Galliard Core Fi.~ed Portfolio ~,304,~28 31.6 ^ Lateef Asset MgmtEgiut<~ 3,999,380 25.7 ^Lateef Asset Mgmt.Egnitc~ 3,302,683 2~.2 ^ Sno~~~ Capital Mgmt. Equity- 3,423,~~0 22.0 ^ Snotia~ Capital Mgmt. Equity 2,519,390 18.5 ^ Voti~ageur Asset Mgmt. Intei7iational 1,75,816 11.2 ^ Voy°ageur Asset Mgmt. International 1,353,07 9.9 ^ Galliard TIPS 1,006,091 6.5 ^Galliard TIPS 992,062 7.3 ^ American Stable Value Fund REIT 988,399 6.=t ^ American Stable Value Fluid REIT 90,0=t2 6.6 ^ R&D Account Cash 15,683 1.0 ^ R&D Account Cash 2~~,265 1.8 TF{E ~ BC}GDAHN Page 10 of 39 ~ GROUP Defined Benefit Plan & Trust for Employees of the City of Winter Springs Asset Allocation As of December 31, 2008 Asset Allocation Domestic Equity Portfolio 5,822,07 X2.75 Sno~ti Capital Mgmt. Equit<- 2,519,390 18.50 Lateef Asset MgmtEquin- 3,302,683 24.25 Liternational Equity Portfolio 1,353,07 9.9.4 Vo~-ageiu Asset Mgmt. International 1,353,407 9.94 7,22,820 X7.70 3,423,440 22.00 3,999,380 25.70 1,75,816 11.22 1,745,816 11.22 7,565,670 -46.6 3,658,666 22.47 3,907,004 23.99 2,22~4,5~8 13.66 2,224,548 13.66 Total Fred Portfolio 5,296,491 38.89 Galliard Core Filed Portfolio 4,304,428 31.60 Galliard TIPS 992,062 7.28 American Stable Valise Fund REIT 904,042 6.6-4 R&D Account Cash 244,265 1.79 Total Fund Portfolio 13,620,278 100,00 5,248,864 33.73 4,242,774 27.27 1,006,091 6.47 988,399 6.35 154,683 0.99 15,560,582 100.00 5,284,665 32.46 4,271,670 26.23 1,012,994 6.22 1,001,256 6.15 206,871 1.27 16,283,010 100.00 Historical Asset Allocation By Segment 100.0 80.0 .~. 0 ~ 60.0 0 ~ 40.0 d' 20.0 0.0 9/08 10/08 11/08 12/08 Domestic Equity ~ Intemational Equity ~ Domestic Filed Income ~ Real Estate ~ Cash Equivalent Page ll of 39 ~~ $C}GDAHN CROUP Defined Benefit Plan & Trust for Employees of the City of Winter Springs Financial Reconciliation As of December 31, 2008 Financial Reconciliation Quarter Domestic Equit} Portfolio 7,122,820 200,200 - - -26,176 -756 32,751 -1,806,766 5,822,071 LateefAssetMsmt.Equitti 3,999,380 100,100 - - -19,749 -423 13,946 -790,71 3,302,683 Sno~~ Capital Mgrnt. Equih~~ 3,423,440 100,100 - - -6,427 -334 18,806 -1.016,195 2.519,390 Internafional Equih~ Portfolio 1,75,816 37,017 27,800 - -x,717 - - -X52,509 1,353,07 Vovaseur Asset M~mt. International 1,74,816 37,017 27,800 - -4,717 - - -4~2.~09 1,33,407 Total Fiaed Portfolio 5,2~8,86~ 112,200 - - -2,99 -6~2 5,~~2 -66,380 5,296,91 Galliard Core Fred Portfolio 4.242,774 92,100 - - -2,616 -524 8~ -27,390 4.304.428 GalliardTIPS 1.006,091 20,100 - - -378 -117 5,37 -38.990 992.062 American Stable Valise Fnnd REIT 988,399 - - -7,445 -2,439 - - -74,473 904.042 R&DAccomrtCash 14,683 -349,417 601,116 -161,130 - -1,80 863 - 244,265 Total Fund Portfolio 15,56Q582 - 628,916 -168,575 -36,325 -3,28 39,056 -2,~OQ128 13,620,278 Financial Reconciliation Fiscal Year to Date Domesfic Equity Portfolio 7,22,820 200,200 - - -26,176 -756 32,751 -1,806,766 5,822,07 Lateef Asset M,mtEgnitc~ 3,999,380 100.100 - - -19,749 -423 13.946 -790.71 3.302,683 Sno~~ Capital Mmt. Egnih' 3,423,440 100,100 - - -6,427 -334 18.806 -1.016,195 2.19,390 Internafional Equip Portfolio 1,75,816 37,017 27,800 - -x,717 - - -X52,509 1,353,07 Votia,enrAssetMamtInternational 1J45,816 37.017 27,800 - -4,717 - - -452,509 1,353,407 Total Fiaed Portfolio 5,2d8,86~ 112,200 - - -2,991 -6~2 S,d~2 -66,380 5,296,91 Ualliard Core Fiied Portfolio d,2=42,77=4 92.100 - - -2,616 -~34 85 -27,390 4.30=4,428 Galliard TIPS 1,006,091 20.100 - - -378 -117 5,357 -38,990 992.062 American Stable Valise Fund REIT 988,399 - - -7,445 -2,439 - - -74,473 904,042 R&DAccomitCash 154,683 -349,417 601,116 -161,130 - -1,850 863 - 244.265 Total Fund Portfolio 15,560,582 - 628,916 -168,575 -36,325 -3,28 39,056 -2,100,128 13,620,278 Page 12 of 39 ~~ $C}GDAHN ~' CROUP Defined Benefit Plan & Trust for the Employees of the City of Winter Springs Comparative Performance As of December 31, 2008 'otal Fund Portfolio (Net) -15.37 (73) -15.37 (73) -28.01 (72) -5.61 (71) -3.18 (70) 0.55 N/A 11/01/2000 otalFmrlYolic~ -13.19 (301 -P_-19 ~3Q~ -22.17 (261 -2-G1 (23) -0.~8 (22) U36 N/A Difference -3.18 -3.18 -5.8~ -3.20 -2.60 0.19 lined-Asset Target Alloc Moderate Funds (IvIF) Median -13.38 -13.38 -23.31 -1.38 -2.29 N/A 'otal Fiord Portfolio (Gross) -15.15 -15.15 -27.50 --4.99 -2.53 1.25 11/01/2000 otal Fmxl Yolic~ -12.19 -12.19 -23.17 -2_dl -i~_58 ii ;6 Difference -2.96 -2.96 -5.33 -2.58 -1.95 0.89 'otal Fund Portfolio (Net) -15.37 (73) -15.37 (73) -28.01 (72) -5.61 (71) -3.18 (70) 0.55 N/A 11/01/2000 otol fund Polio Target Alli~cations -1 ~.1S (~8) -1 x.18 (-18> -~~ » (d'>) -, 1 ; (;0> -1.1 ~ (39) i~.o9 NiA Difference -2.19 -2.19 -2.79 -2.~8 -2.05 0.~6 lined-Asset Target Alloc Moderate Funds (:MF) Median -13.38 -13.38 -23.31 -1.38 -2.29 N/A 'otal Fund Portfolio (Gross) -15.15 -1515 -27.50 -=4.99 -2.53 1.25 11/01/2000 otalFmrlPohc~ Tar,~etAllorltion~ -13.18 -13-18 -~~?? -3.13 -1.13 U.U9 ~iffereuce -197 -L97 -2.28 -1.86 -1.~0 1.16 Rehnns for periods seater than one tiear are tuinualized. Refirns are eipressed as percentages ~'~ THE, Total Fend Police T 3i yet Allocations = 50° o S&P~00, 1 ~°o MSCI EAFE, 30° o LB Int. Assre~ate, & ~° o NCREIF ' ~ ~~~t~i~~ Total Fetid Policy = 60°o S&P 500. and d0°o LB Int. Aam~esate ~ CROUP Page 13 of 39 Page 1~ of 39 ~~ $C}GDAHN ~' GxaUP Defined Benefit Plan & Trust for Employees of the City of Winter Springs Comparative Performance As of December 31, 2008 Total Equity Portfolio Total Equity Polio Total Equity Portfolio Tottil Equity Poli« TuetAllo~ations Domestic Equity Portfolio ShP 300 US Core/Larne Cap EquitL (SA+CF) Median Lateef Asset Mgmt.Equity Kua~ell 1i ii i0 Growth Index Difference US Gro~~tl~/L.arge Cap Equity- (SA+CF) Median Snow Capital Mgmt. Equity Ku~sell 3000 Value Index US All Cap Value Equit<~ (SA+CF) Median International Equity Portfolio IvISCI EAI~E Indeti ternational Active Value Equity (SA+CF) Median oyageur Asset Mgmt. International SCI EAFE Index -24.20 -24.211 -40.91 -2L~i4 -2L~i_1 -37 nii -2.26 -2.26 -3.91 -24.20 -24.20 -40.91 -21.31 -21.31 -38.18 -2.69 -2.69 -2.73 -23.80 (87) -23.80 (87) -38.30 (79) -2L94 1601 -?L94 (60) -37.iiii i61 i -1.86 -1.86 -1.30 -2L66 -21.66 -36.39 -19.33 (11) -19.33 (11) -32.80 (12) -22.79 (33) -22.79 (33) -38.44 (48) 3.46 3.46 x.64 -22.39 -22.59 -38.55 -29.03 (98) -29.03 (98) -44.36 (96) -22.41 (3-4i -22.41 (341 -36 23 (i~4) -6.62 -6.62 -8.11 -22.15 -22.15 -35.17 -10.42 -6.-43 -1.60 -; 98 -4c~1 2.;3 -2.44 -1.82 0.73 -10.42 -6.43 -1.60 01/01/2001 -8.14 -4.73 -2.4ii -2.28 -1.70 0.80 -9.29 (78) -5.77 (86) -1.54 N/A 11/01/2000 -8 36 166) -3.21 179 i -3.7 3 N/A -0.93 -0.56 2.21 -7.90 -4.32 N/A N/A N/A -26.15 N/A 10/01/2007 -9.11 i6~ii -3.71 (69) _32.38 N/A N/A N/A 6.-43 -8.49 -4.69 N/A N/A N/A --41.66 N/A 10/01/2007 -8.26 (371 -47(i (78) -33.57 N/A N/A N/A -8.09 -7.57 -3.84 N/A -26.00 (98) -26.00 (98) -50.21 (98) -1.4.11 (100) -7.89 (100) -1.65 N/A 11/01/2000 -19 ~i0 138) -I ~ 90 i 38 i -43 li(~ i ?7 i -~, ~i2 (6(~ i -2.08 i 74 i 028 N/A -6.10 -6.10 -7.15 -7.19 -5.81 -1.93 -19.35 -19.35 -40.37 -5.06 -0.28 N/A -zs.oo ~98~ -26.00 ~98~ -so,21 ~98~ -19.9ii (38) -19.90 (58) --43.06 (77i -6.10 -6.10 -7.15 Active Value Equip (SA+CF) Median -19.35 -19.35 -40.37 Rehnns for periods ;neater than one year are tuinualized. Refirns ue eipres5ed as peicenta,es. Total EquitS, Polio- 100° o S&P X00 Total Egnit_a Police Tarset Allocations= 80°o S&P 500, & 20°o MSCI EAFE Page 15 of 39 N/A N/A -47.-46 N/A 10/01/2007 -t, 92 (66) -2.08 (74) -37.14 N/A N/A N/A -10.32 -5.06 -0.28 N/A ~~ $C}GDAHN ~ ~~oU~ Defined Benefit Plan & Trust for Employees of the City of Winter Springs Comparative Performance As of December 31, 2008 l Fred Portfolio Filed Polio 'otal Fred Portfolio otal Fred Polio Tar~,et Allocations lliard Core Fred Portfolio clams s Capital Intermediate A„regate Terence Intermediate Filed Income (SA+CF) Meditnl lliard TIPS clams s Capital LT S_ Treasnr~ Inflation Note~~ 1-10 Year ference TIPS (SA+CF) Median ierican Stable Value Fiord REIT .1 Estate Polio ference Private Real Estate-Open End (SA+CF) Median -1.20 -1.20 -3.49 2.29 2.64 4.98 11/01/2000 3 >5 3S8 4.86 ;7 4S7 6.01 -4.78 -4J8 -8.35 -3.08 -1.93 -1.03 -1.20 -1.20 -3.49 2.29 2.64 4.98 11/01/2000 2?> 2?> 3.75 > I1 4.41 >.92 -3.45 -3.4~ -7.27 -2.82 -1.77 -0.94 -0.68 (90) -0.68 (90) --4.08 (93) N/A N/A -1.88 N/A 10/01/2007 3.~5 (~91 3 ~5 t~')~ 4.86 148) >45 ~(~~ 4.43 1401 6?7 N/A -4.26 --4.26 -8.94 N/A N/A -8.1~ 4.22 4.22 4.60 x.40 4.30 N/A -3.40 (66) -3.40 (66) -0.84 (39) N/A N/A 3.23 N/A 10/01/2007 -~.1~ (971 -~ 1> (97) -2,43 (77~ 3.38 (61> 3.51 (9~1 1.86 N/A 1.7~ 1.7~ L~9 N/A N/A 1.37 -2.83 -2.83 -1.44 3.39 4.35 N/A -7.53 N/A -7.53 N/A -5.30 N/A N/A N/A -3.06 N/A 10/01/2007 1.71 N/A 1.71 N/A Z00 N/A N/A N/A Z00 N/A -9.24 -9.24 -12.30 N/A N/A -10.06 N/A N/A N/A N/A N/A N/A Rehnns for periods ,reatei than one ti~ear are tumualized. ~ THE, Rehu7is are eipressed as percentages ~ ~~~D A ~hT Total Filed Polio 100° o LB Intermediate A,gresate ' ri 1 V Total Flied Police Tarset Allocatirnis = 8~°o LB Intermediate Assresate & 1~° o LB US Tips 1-1O years ~ !~` R~T 7~ Page 16 of 39 'l~ V Defined Benefit Plan & Trust for the Employees of the City of Winter Springs Comparative Performance As of December 31, 2008 'otal Fiord Portfolio (Net) -16.82 (84) 13.03 (1) 7.89 (14) 11.07 (1) 12.18 (1) 12.49 (21) otalFundYolic~ -12.11 (39) IL~)7 (1) 9.5~ (9) 10.76 (1) 1L6> (1> 1S_84 (3) Difference -4.71 1.06 -L66 0.31 0.53 -6.35 homed-Asset Target Alloc Moderate Funds (MF) Median -13.61 6.72 3.62 3.03 2.02 10.10 'otal Fund Portfolio (Gross) -16.-46 13.92 8.62 11.82 13.05 13.34 otal Fund P~lic~ -12.11 1 L97 9 ~~ 10 7c; 1 Lt>> IS$4 Difference -4.35 195 -0.93 1.06 1.40 -5.50 'otal Fund Portfolio (Net) -16.82 (84) 13.03 (1) 7.89 (14) 11.07 (1) 12.18 (1) 12.-19 (21) otal Fund Yolic~ Target Allocations -14.63 (6U) 14.4U (1) ~>.19 (10) 10.76 (1) 1 L(3 (1) 1 S.S4 (2 ) Difference -2.19 -1.37 -1.30 0.31 0.53 -6.35 homed-Asset Target Alloc Moderate Funds (IVIF j Median -13.61 6.72 3.62 3.03 2.02 10.40 'otal Fund Portfolio (Gross) -16.=46 13.92 8.62 11.82 13.05 13.34 otal Fund Yolic~ Target Allocations -14.63 14.46 9-19 10.76 1 1 6> 18_S4 Difference -1.83 -0.48 -0.57 1.06 1.40 -5.50 Rehnns for periods seater than one tiear are tuinualized. Refirns are eipressed as percentages ~'~ THE, Total Fund Police T u yet Allocations = 50° o S&P~00, 1 ~°o MSCI EAFE, 30° o LB Int. Assre~ate, & ~° o NCREIF ' ~ ~~~t~i~~ Total Fetid Policy = 60°o S&P 500, and 40°o LB Int. Aam~esate ~ CROUP Page 17 of 39 Page 18 of 39 ~~ $C}GDAHN ~' GxaUP Defined Benefit Plan & Trust for Employees of the City of Winter Springs Comparative Performance As of December 31, 2008 l Equity Portfolio F.gnii~ Polio 'otal Equity Portfolio otal Egnit~ Policy Tar«et ~1locations )omestic Equity Portfolio ,&P 30ii )ifference iS Core/Lar~se Cah Egt~it< 1 SA+CE) McJian ~ateef Asset Mgmt.Equity :ussell IOOii Gro«rth Indel )ifference IS Uro~~~th/L,ar~e Cap Equit<~ (SA+CF) Median snow Capital Mgmt. Equity ;u4~e11 3000 Valve Indel )ifference 7S All Cap Value Equine (SA+CF) Median nteinational Equity Portfolio 'ISM"I I a1 E Index )ifference nternational Active Value Equiiti~ (SA+CF) Median Joyageur Asset Mgmt. International ~1SCI EPEE Index )ifference uternational Active Value Equine (SA+CF) Medi<ui Rehnns for periods ;neater than one ti~ear are tuinualized. Refirns ue eipres5ed as percentages. Total EgnitS, Polio- 100°o S&P X00 Total Egnit_a Police Tarset Allocations= 80°o S&P X00, & 20°o MSCI EAFE Page 19 of 39 -25.61 18.52 10.83 15.0 17.60 18.76 -~ 1 `)~ 1 t 44 1 ~ > 1 14.3U 1 x.14 ~-6 f,-1 -3.63 2.08 -1.68 1.10 2.-16 -5.88 -25.61 18.52 10.83 15.0 17.60 18.76 -23 +~1 15.21 I L9<t 14 3U 1> 14 24 +~4 -2.00 0.31 -1.16 1.10 2.=16 -5.88 -21.66 (87) 17.58 (2) 9.29 (27) 13.77 (2) 16.77 (1) 17.81 (13) -2E98 155 1(.44 131 10.79 1101 12?3 13~ 1;.57 (1) 24.40 (2) 0.32 1.14 -1.50 1.~2 2.90 -6.59 -18.55 9.34 5.47 4.41 1.99 1-4.59 -15.13 (1~) N/A N/A N/A N/A N/A -211 SS 1 ~4) 19.3 1 1-41 6 (~4 123) I P6ii 17) 7.>1 131 2>.92 1 7 ~.7~ N/A N/A N/A N/A N/A -20.11 13.61 3.38 3.94 -0.38 16.30 -28.16 (98) N/A N/A N/A N/A N/A -22.70 (89) 1; 7; 191 14.» 111 16.78 11) 20.89 1 11 2-4.89 1141 -x.46 N/A N/A N/A N/A N/A -16.64 7.68 8.97 7.23 5.47 20.14 -39.55 (100) 23.63 (-4) 19.8 (8) 26.83 (1) 22.94 (1) 27.32 (27) -3i) 1 : 191) 2> 3S 14 ~ 19 t~ 110) 2tS 32 11 1 22 >' 1 1 ~ ,u ~,~ 1;01 -9.42 -1.7~ 0.19 0.~1 0.42 0.78 -26.36 12.78 15.97 10.25 7.~4 2L~6 -39.55 (100) N/A N/A N/A N/A N/A -30.13 191) ?>.38 14) I9 G~ I U ~ i 26.32 11 i 22.>2 1 11 X65-4 130 ) -9.-12 N/A N/A N/A N/A N/A -26.36 12.78 1.97 10.2 7.~4 2L~6 ~~ $C}GDAHN ~ ~~oU~ Defined Benefit Plan & Trust for Employees of the City of Winter Springs Comparative Performance As of December 31, 2008 Total Fred Portfolio Total FLtied Polies Total Fred Portfolio Total Filed Polio Tar,et Allocations Galliard Core Fred Portfolio Barclay ~ Capital Intenuedi~te ~~~rre~rate Difference US Intermediate Fred Income (SA+CF) Medi~ul Galliard TIPS Bu~cla~ ~ Capital U.S_ Treaanil IirtlationNotes~ 1-li( Year Difference US TIPS (SA+CF) Median American Stable Value Fiord REIT Keal Estate Pollc~ Difference US Private Real Estate-Open End (SA+CF) Median 0.64 4.96 3.27 2.81 2.68 x.24 4.1t~ ;. 2.50 3.65 >.40 -3.52 -0.37 -0.28 0.01 -1.00 -0.16 0.64 4.96 3.27 2.81 2.68 x.24 4.73 ; ;; ;.;; 3.50 ;.ES > 4i( -4.09 -0.37 -0.28 0.01 -L00 -0.16 -1.68 (76) N/A N/A N/A N/A N/A 4.16 (11 >;; (11 3.54 (xl 3?3 (91 3.39 (101 4.94 (1>1 -x.84 N/A N/A N/A N/A N/A 0.19 4.26 3.30 1.50 2.69 3.93 7.72 (1) N/A N/A N/A N/A N/A 7.5'i (1 ( ~ ;? 1971 3?5 (36( ;.`-4 (11 ~ 7~ (>(~( 7?~ (>> -0.17 N/A N/A N/A N/A N/A 1.27 6.31 1.93 2.70 x.77 6.65 -4.03 (20) N/A N/A N/A N/A N/A 7.i(0 (6) N/A N/A N/A N/A N/A -2.97 N/A N/A N/A N/A N/A 1.04 13.44 12.02 14.60 9.65 7.11 Rehnns for periods ,reatei than one ti~ear are tumualized. ~ THE, Rehu7is are eipressed as percentages ~ ~~~D A ~hT Total Filed Polio 100° o LB Intermediate A,gresate ' ri 1 V Total Fried Police Tarset Allocatirnis = 8~°o LB Intermediate Assresate & 1~° o LB US Tips 1-lo years ~ !~` R~T 7~ Page 20 of 39 'l~ V Winter Springs General Employees Total Fund Portfolio (Net) December 31, 2008 Market Value Net Ca ~tal Market Value ~s of Transfers Contributions Distributions Fees Espenses Income Apprec/pDeprec ~s of 9/30/2008 12/31/2008 Total Fiord Portfolio (Net) 15,561 - 629 -169 -36 -3 39 -?,400 13,620 n-Iarket Value As of Transfers Contributions Distributions 9/30/2008 Total Fund Portfolio INet) IS i61 10.00 0.00 1000 a L 7 ~ _30.00 -40.00 so 00 6_ 9 -169 Fees Espenses -36 -, $1600 ~~~~~~~ 1 Oct-2008 1 2 3 ~ 5 Quarter To Year Pears Years Pears Years Dec-2008 ^ Total FundYortfolio(Net) -1537 (73) -1537 (73) -28.01 U°_) -12.80 (67) -561 (71) -318 (70) -042 156) • Total FundPolicp -12.19 (30) -1219 (30) -2~-ll (26) -9.07 (25) -2.41 (23) -0.58 (22) 1.43 (I51 ndedian -1333 -1338 -2534 -1124 -433 -229 -030 $145.0 $1300 ~tt5.o ~tuoo $3i0 tozt too 2 $ 70 0 I 1"' 00 9 02 6;04 3 0C 12%07 12.03 -Total FimdPortfilio (Net) Total Fund Policy 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep-2008 .Jun-2008 D-far-2008 Dec-2007 Sep-2007 Jun-2007 Total Fund Portfolio (1Vet) -6.59 (24) -4.79 (l0U) -4.35 (32) -2.22 (84) 1.89 (52) 4.48 (11) Total FundPohcj- -5.08 (9) -1.90 (77) -4.31 (39) -0.34 (50) 235 (34) 3.62 (32) ffiied-~~seet Target allot n-Ioderate Fmrds 1 nIF 1 ndulian -8-04 -1.03 -5 40 -0.85 1 93 3.07 Page 21 of 39 ~~ $C}GDAHN ~' CROUP D'farl.et Value Capital Income ~pprec/ Deprec' ~s of 12/31/2008 39 -2 400 13.620 Winter Springs General Employees Total Fund Portfolio (Net) December 31, 2008 300 ~~,z1 0.00 0 Perfinnvice ~ R ,,oo • i ~~ ~ • a ^ ~~~• ~ 1ao ~ ^ ^ ^ ~ ~ ~ ^ z >ooo ~ ~ o • 6.o a • ~ ^ ~ ~ ~~ oo o a = ~ .~ trnde~ a ~, Yerfinueuice 1 X10 00 ~ ~ i i i R -10.0 3 0~ 3 0~ ; 0( ; 07 ; 03 12:03 o -10 0 = 0 C 0 14.0 23.0 30.0 F; Total Period 5-25 25-Dledian b-Iedian-75 7.5-95 TotalF~ndPolic~~(%) Count Count Count Count ^ Total FundYortfolio(Net) 20 2 UO°o) li (7~°0) 3 (li°o) 0 (0°~0) fU~erPerformanee fIInderYerfoi~mance ~f1ar-2001 {r Dec?OOB •TotalFimdYolicv 20 10 (30°-0) R (~0°0) 2 (10°0) 0 (0°~0) 00 0 00 e -_ .~~ a L ~ -10.00 a -1 ~_oo 10 00 00 e ~ ~~ a L ~ -x.00 a -10.00 ~.oo Aso 1 0.00 lzso 1 ~ oo i ztio ~o_oo a.oo 6 00 3.00 10.00 1 z o0 1 a ~0 16 00 Risk (StandardDe~~iation %) Risk (Sta ndardDe~~iation % ) Return Standard Deviation Return Standard Deviation ^ Total Fund Yrntfolio (Net) S 61 10 81 ^ Total Funs Portfolio (Neo -0.~2 9.36 • Total Fund Policj= -2.~1 9-~7 • Total Fuud Policj- 1 ~3 8-15 - l~dedian -~33 1QCi~ - l~.feelian -030 8.83 1 Tracl.ing r own Sharpe Downside Dlarlcet D4arket Alpha IR Beta Error Capture Capture Ra6o Risk Total Fund Portfolio (Nell 2.93 33-07 113.13 -2.97 -1-09 -0 8~ 1-10 10 06 Total Fund Policy 0.00 100.00 100.00 0.00 N'_~ -0.62 1.00 8.37 1 r own Tracking Sharpe Downside n'Iarket biarket Alpha IR Beta Error Capture Captnre Ra6o Rislc Total Fund Portfolio (Net) 2.6~ 96.23 113_G7 -192 -Q68 -0.33 1.11 8.08 Total Fluid Policj- 0.00 100.00 100.00 0.00 NA -0.17 1 00 6.72 Page 22 of 39 ~~ $C}GDAHN ~' CROUP Winter Springs General Employees Domestic Equity Portfolio December 31, 2008 ' 1 1 ~ Dlarlcet Palue ~s of 9/30/2008 Net Transfers Contributions Distributions Fees Expenses Income Ca ~tal apprecpDeprec ~Iarlcet Palue As of 12/31/2008 Domestic Equip-~ Portfolio 7,423 200 - - -26 -1 33 -1,807 S,R22 ~' 1 1 1 1 D-Iarl.et Value As of 9/30/2008 Net Contributions Distributions Transfers Fees Expenses Income Capital ~pprec/ Deprec' D-Iarl.et Value ~s of 12/31/2008 Domestic Equih° Portfolio 7.423 200 - - -26 -1 33 -1.807 5.822 ~ 1 1 ~ 1 ~ 1 $160.0 1 ~ 00 0.00 ® $1400 -15.00 .. ~ $1200 L -30 ~~~ a -45_0o x ioo 0 89 0 -60 00 $80-0 ~9~1 1 Oct-2008 1 2 3 ~ ~ Quarter To Year Pears Years Fears Years Dec-2008 ^DomesticEquitF-Portfolio -,_3.80 (871 -2380 (871 -3830 U9) -1855 (661 929 U8) -5.77 (861 -2.0°_ (71) • S,~P500 -21.94 (60) -2194 (60) -37.00 (61) -18.48 (65) -836 (C,C,) -521 (79) -2.19 (R1) $600 1, 00 9 02 6;04 3 06 12%07 12 08 ndedian ~ -21.66 -21.66 -36 59 -17.95 -7 90 -432 -131 -Domestic Equit}- Portfolio SAP 500 1 1. ' 1 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep-2008 Jun-2008 Mar-2008 Dec-2007 Sep-2007 .Jun-2007 Domestic Equih Portfolio -4.69 (S) -6.3~ (99) -9.30 (41) -3.2~ (6U) 2.68 (28) 6.93 (2~) S,~P500 -837 (40) -2.73 X83) -9.45 (48) -333 (66) 2.03 (471 C,28 (49) T1ti Core'Luge Cap Equih• (SA+ CF) f,fedian -9.00 -1.23 -9.46 -2.88 1 96 6.27 ~ T $C}GDAHN ~ ~R~~P Page 23 of 39 Winter Springs General Employees Domestic Equity Portfolio December 31, 2008 300 o~~z~ o.oo P erfinnvice 13.0 a 25 00 R V x ^ ~ ^ 'c 50 00 -6.0 ~ ^ ^ ~ ~ . ~ ~SOO ' ••• •~~_ •~ ~ ••~ •• ~ ~ ~ • ~ ~ -1so w u~~ae~ a ^ Perfinuemce 100 00 ~ ~i -30.0 : 0~ 3 05 ~ 06 3 07 3 iS 1~ 03 o -30 0 -13.0 -6.0 6 0 18.0 30.0 q Total Peri od 5-25 25-Median Median-75 75-95 S&P500(%) Count Count Count Count ^ DomesticEquitvPortfolio 20 0 (0°0) 8 (~0°-0) 6 (30°-0) 6 (30°0) fIInderPerfonnance fO~erPerfoimance ~LFar-2001 {r Dec?OOB • S&P 300 20 0 (0°0) 0 (0°0) 13 (65°0) 7 (35°-0l 00 0 UO -5-00 -10.00 ,~, -15-00 7 a -20 00 -~ ~ _oo 10 00 00 0.00 ~ -5.00 L ~ -10.00 a -15.00 S.oo to 00 15.0o zo.o o z5.oo 30 0o S.oo lo.o0 15 00 20 0o z5 00 Risk (StandardDe~~iation %) Risk (StandardDe~~iation % ) Keturn Standard Deviation Keturn Standard Deviation ^ Domestic EquiK Portfolio -9.29 16.0 ^ Domestic Equit<- Portfolio -2.0°_ 1~ 17 • S&P 500 -R36 1;.92 • S,YP500 -2.ll 135 - l~,fediui -7.90 16-03 - l~.feelian -131 13 72 1 Tracking r own Sharpe Downside 1\-Iarket Market Alpha IR Beta Error Capture Capture Ratio Risk DomeaticEquin-Portfolio 56.63 131-85 99.73 11.17 021 0-01 0-89 29.90 SAP 500 0.00 100.00 100.00 0.00 N'_~ -0.76 1.00 13.83 1 r own Tracking Sharpe Downside Market biarket Alpha IR Beta Error Capture Capture Ra6o Ride Domestic Equih Portfolio X391 155 2~ 101.30 7.90 0.18 0.08 0.90 2335 SAP 500 0.00 100 00 100.00 0.00 N _A -0.35 1.00 11.01 Page 2~ of 39 ~~ $C}GDAHN ~' CROUP Winter Springs General Employees Lateef Asset Mgmt.Equity December 31, 2008 Dlarket Value Net Ca ~tal b4arlet Value As of Transfers Contributions Distributions Fees Espenses Income Apprec/pDeprec ~s of 9/30/2008 12/31/20118 Lateef asset 1~Igmt Equip 3,999 100 - - -20 - 14 -791 3,303 Marl.etPalue Net Ca rtal D'IarlcetYalue As of Transfers Contributions Distributions Fees Espenses Income ApprecpDeprec As of 9/30/2008 12/31/2008 Lateef=lssetI~IgmtEquit~• 3.999 100 - - -2U - 1~ -791 3.303 L -30.00 a -45.00 $1100 $100.0 $ 90.0 x;30 0 -60 00 1 Oct-2008 1 2 3 ~ 5 $ 70 0 $68 Quarter To Year Years Pews Years Years Dec-2008 ^ Lateef ? sset 1~Igmt Equit<- -19 33 (11) -1933 U 1) -32.80 (Ll N/~ N;.~ N%A N%~ $61.1 •Russe111000urrn~rthHides -32.79 (55j _22.79 (55j _;g.44 ~4g1 -17.03 (62) -9.11 (601 -SJ1 (69) -3.42 (81) $600 ~ ~~ ~~ ~ 9%07 1?'07 x'03 6 03 9:'03 1?'08 ndedian ~ -2'S9 -2259 -3855 -1627 -3.49 -4.69 -1.83 -Lateef~saetI~igmt-Equitj- Russe111000Ur owthUidel 1 1. ' 1 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep-2008 .Jun-2008 lbJar-2008 Dec-2007 Sep-2007 .Jun-2007 Lateef~sset D-Igurt.Equih -U.SU (5) -7.28 (99) -9.70 (36) 1.87 (23) N/A N/~ Russe111000~rro~~thIndei -1233 (43) 125 1>5) -10.18 (42) -OJ7 (57) 421 (65) Ci_86 (47) US Uro«rth'Luge Cap Equih (S~~ +CF) median -12 51 1 43 -10.71 -0.25 i?0 6 72 Page 25 of 39 ~~ $C}GDAHN ~' CROUP Winter Springs General Employees Snow Capital Mgmt. Equity December 31, 2008 ' 1 1 ~ nJarlcet ~"aloe nJarket Value Net Ca ~tal p .1s of Contributions Dishributions Fees Expenses Income ~s of 9/30/2008 Transfers >~pprec/ Deprec 12/31/2008 Sno«, Capit~~lblgmt. Equip- 3,823 100 - - -6 - 19 -1,O1G 2519 ~' 1 1 1 1 l~Iarleet Value DJarlcet Value Net Ca ~tal p As of Transfers Contributions Distributions Fees Expenses Income ~ ~ec./ De sec. PP p ~s of 9/30/2008 12/31/2008 Sno1~-Capitall~IgmtEquih- 3.823 100 - - -6 - 19 -1.016 2,519 $115.0 1,.00 0.00 ~_ -1 x.00 a L -30.00 a -a5 00 -60 00 $100 l) `~ 85.0 ~7o n X60 0 1 Oct-2008 1 2 3 d 5 $~~ 0 $51 0 Quarter To Pear Years Years Years Years Dec-2008 ^ Sno~~ Capital nIgmt Equip- -29 03 (981 -29 03 (981 -dq 36 (961 N- ~ N- ~ N- ~ N%A •Russell~r)OOCalueliidc~ -22.81 (5q) -22g1 (5q) -3Ci25 (64) -20.56 (73) -826 (57) -q.70 (78) -0-72 (6q) $q00 %07 12.07 3/OR C;08 9:'08 12.08 n~fedian ~ -22.15 -22.15 -35.17 -17.81 -7 57 -3 8q -0.28 - Sno~c Capital I~Igmt Equity Russe113000 Value Lidea 1 1. ' 1 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep-2008 .Juu-2008 blar-2008 Dec-2007 Sep-2007 .Juu-2007 Sno«-Capital Mgmt Equih- -9.16 (57) -5.30 (9d) -8.87 (61) -8.35 (93) N/A N/>~ Russe113000 Calue Inges S 26 (20) -5.17 (93) -8.55 (5q1 -591 (7q) -OJ5 (q2) q 69 (96) US.111 Cap ti-alue Equitj- (Sa+CF )1~Iecfian -7 85 -0.70 -8 18 --4 q8 -157 6 q7 +`~ TI [t, BC}GDAHN ~, ~Ra~P Page 26 of 39 Winter Springs General Employees International Equity Portfolio December 31, 2008 ' 1 1 1 Dlarket Value Net Ca ~tal n'Iarket Value .1s of Transfers Contributions Distributions Fees Expenses Income A ~ec./pDe sec. ~s of 9/30/2008 PP p 12/31/2008 International Equip- Portfolio 1,746 37 28 - -_ ~' 1 1 1 1 Marl.et Value As of T~ ausfers Contributions Distributions Fees 9/311/2008 - - -453 1,353 Capital Market Value Expenses Income ~s of ~pprec./ Deprec. 12/31/2008 IntemationalEquin Portfolio 1,746 37 1 ~.UU 0.00 ~_ -1 x.00 a L -~~ 00 a -45.00 -60 00 -'~ - -~ - $ 200 0 - -453 1,3>; `\ $150.0 ~ io2.6 ~iuuu 34 0 1 Oct-2008 1 2 3 4 5 Quarter To Year Years Years Years Years Dec-2008 ^ International EquiK Portfolio -20.00 (981 2C, 00 (93) -50 21 (981 -29.44 (100) -14.11 (1001 -7.89 (100) -2.51 (100) •1~dSCIEaFEInJes -19.90 (581 -19.90 (58) -430(1 (77) -2027 (C,7) -Ci93 (66) -2.08 (74) 3.10 (76) $500 1"''00 9 02 6:'04 3 0C 12107 12.03 n~fedian -1935 -1935 -4037 -13.28 -506 -028 4.04 -International Equity Portfolio bISCI E.~FE InJe~ 1 1. ~' 1 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep-2008 Jun-2008 D-tar-2008 Dec-2007 Sep-2007 Jun-2007 International Equip Portfolio -24.28 (95) -10.9.1 (100) -0.22 (2) -10.17 (lUU) -0.26 (B3) 6.84 (5~) 1~,ISCIEAFEIngei -20.50 (81) -1.93 (41) -3.32 X661 -1J1 (53) _ (29) 6.67 (571 International ~1cti~ e ~ alue Egiuh (S ~+CF) l~iedian -1737 -239 -8 08 -1 42 126 6-93 +~ Tltt-, BC}GDAHN ~, Page 27 of 39 GROUP Winter Springs General Employees International Equity Portfolio December 31, 2008 60 0 0 00 o~~zr . P erfinnvrce q0.0 R 25.00 o a 'o zoo '~ 50 on ~ ~ ~ ~ ^ ~,, ° ° a W _~,~ ~ ^^ ^~~ ^ R IInder a . ^ o ~ Yerfinueurce 100 ~~~~ i ~ i ~ -A00 3Oq 305 3106 3.07 303 1203 ~ -40 0 ?0.0 0.0 20.0 40.0 60.0 Total Period 5-25 25-b-Iedian b-Iedian-75 75-95 NISCI EAFE Index(%) Count Count Count Count ^ InternationalEquinrYortfolio 20 0 (0°0) 0 (0°0) 9 (~i~o) 11 (i5°o) f U~erPerformanee f IInderYerformance ~flar-2001 {r Dec ?003 • ~-fSCI1~~FE Index 20 0 (0°0) 1 (5°-0l 12 (60°0l 7 (35°0) 10 00 00 15 00 0.00 ~_ -~-00 a L ~ -10-00 a -15.00 10 00 e ~~ a L '~ 0.00 a s_oo 10.00 1 ~ nn zo.oo z5. oo 30.00 1 o vv 15_0o zo.oo z5 00 Risk (StandardDe~~iation %) Risk (Sta ndardDe~~iation % ) Return Standard Dev iation Return Standard Deviation ^ International Equity- Portfolio -lq.l l '_3 73 ^ International Equip- Portfo lio -2.31 21 19 • f.ISCI E~~FE Iirdex -692 19.69 • 1vISCI E?,FE Index ? 10 1759 - l~fediur -S-OC, 18.92 - bfediui 4-Oq 17-00 1 r own Tracking Sharpe Downside n-Iarket n-Iarket Alpha IR Beta Error Capture Capture Ra6o Risk International Equit~-Yortfolio 6.99 90.21 11923 -6.35 -1-01 -OJ1 l.lq 31.22 bISCI EAFE lirdex 0.00 100.00 100.00 0.00 N'_~ -O.q7 1.00 16.90 1 r own Tracking Sharpe Downside Market n4arket Alpha IR Beta Error Capture Capture Ra6o Risk Internatirnral Equip- Portfolio 5.68 96.06 l lCi.89 -~ q6 -0.71 -0.19 1.13 16.69 bfSCI EAFE Iirdex 0.00 100.00 100 00 0 00 N A 0 02 1.00 13 38 Page 28 of 39 ~~ $C}GDAHN ~' CROUP Winter Springs General Employees Voyageur Asset Mgmt. International December 31, 2008 ' 1 1 1 Dlarket Value Market Value Net Capital As of Transfers Contributions Distributions Fees Expenses Income ~ sec/ De rec. As of 9/30/2008 pp p 12/31/2008 Z"oj-ageur assetl~Igmt. International 1,76 37 28 - -~ - - -~53 1,353 ~' 1 1 1 1 Market Value Market ~"aloe As of Transfers Contributions Distributions Fees Expenses Income ~ iec./p~De sec. As of 9/30/2008 pp p 12/31/2008 ti-opageur lssetl~Igmt Intzmahonal 1.76 37 28 - -~ - - -~53 1.3i3 ~' 1 1 1 ~' 1 $115.0 1 ~ 00 0.00 -15.00 L -~~.~~ a -5.00 -~~, uo $100 C~ $ 85.0 ~ 70 0 x;55 0 ~~o_o 1 Oct-2008 1 2 3 ~ 5 Quarter To Pear Pears Years Years Years Dec-2008 ^ ~-o~-ageur?ssetl~IgmtIntemational X6.00 (98) -2600 (981 -5021 (98j N:A N,:~ Nib N%A $250 •1~dSCIEaFEInJes -1).90 (58) -19.)0 (581 -~3OC, (77) -2027 (Ci7) -6.92 (66) -2.08 (7~) 2.10 (76) 9i07 1~-07 3%08 6.08 9.'08 1~-08 - ~'op ageur .ass et I~Ig mt. vitemati onal n~fedian ~ -Ill 35 -1935 -037 -18.28 -5.06 -0.28 ~.0~ DISCI E ~FE Inelel 1 1. ' 1 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep-2008 Jun-2008 D-tar-2008 Dec-2007 Sep-2007 Jun-2007 t"ocageur Asset Mgmt. International -2.28 (95) -10.9.1 (100) -0.22 (2) -10.17 (lUU) N/A N/A 1~,ISCIEAFEIn~ei -20.50 (81) -1.93 (~1) -8.82 X661 -1J1 (i3) _ (29) 6.67 (57) International ~1cti~ e ~ aloe Egiuh (S ~+CF ) l~iedian -1737 -239 -8 08 -1 ~2 126 6-93 +~ Tltt-, BC}GDAHN ~, ~~a~P Page 29 of 39 Winter Springs General Employees Galliard Core Fixed Portfolio December 31, 2008 Dlarket Value Net Ca ~tal Market Value As of Transfers Contributions Distributions Fees Expenses Income ~ ~ecpDe sec. As of 9/30/21108 pp p 12/31/20118 alliard Core Fred Portfolio ~?~3 92 - - -3 -1 - -27 ~30~ Marl.et Value As of T~ ausfers Contributions Distributions 9/30/2008 Expenses Galliard Core Filed Portfolio ~?~3 )? Fees _~ $110.0 10.00 5.00 °.~.. 0 (~0 a L 7 a $105-0 ~iooo -iuuu 1 Oct-2008 1 2 3 ~ 5 Quarter To Pear Pears Years Years Pears Dec-2008 ^ Galliard CoreFisedPortfolio -068 (90) -0.65 (901 -x.08 (93) N,~A N/~ N%a N/A • BuclavsCapitalIntennecfiate~~ggregate 3.58 (59) 3.5g (59) ~gC, (~81 5.93 (~9) S.~g (50) X60 (~9) ~.~3 (~0) ndedian X22 x.22 ~ 60 5.86 5.~0 x.52 X30 $950 Capital Marl.et Value Income As of Apprec/ Deprec 12/31/2008 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep-2008 .Jun-2008 Mar-2008 Dec-2007 Sep-2007 Jun-2007 Galliard Core Eixed Portfolio -3.02 (8~) -0.61 (20) 0.20 (96) 1.81 (93) N/A N/A Pai~laj-s CapitalIntennediate~~ggregate -0.13 U8) -096 (~1) 2.35 (58) 3.89 (~5) 2.76 (51) -035 (86) US Iirtennediate Fled Income l S_~+CF ~ n.Iedian -1 25 -1.05 2 60 2.82 2J7 -0 li Page 31 of 39 ~~ $C}GDAHN ~' CROUP )i07 1 ~%07 3105 6.05 9105 1 ~%OS -Galliard Core Fred Portfilio Baal acs Capital Intermediate Aggregate Winter Springs General Employees Galliard TIPS December 31, 2008 ' 1 1 ~ biarket ~"aloe Market Value p As of Contributions Distributions Fees Espenses Income ~sof 9/30/2008 Transfers ~ cec/ De sec. ~~ ~ 12/31/2008 alliard TIPS 1,006 20 - - - - 5 -39 992 ~' 1 1 1 1 D-Iarket Value D-lancet Value ~s of Contributions Distributions Fees u Espenses Income p ~s of 9/30/2008 Tr sfers ~ cec De sec. PP p 12/31/2008 Galliard TII S 1,006 20 - - - - ~ -39 992 ~ 1 ~ ~ 1 $110 10.00 °.~.. 00 0 00 a L . 7 a s o0 -io 00 1 Oct-2008 1 2 3 ~ 5 Quarter To Year I"ears Fears Pears Pears Dec-2008 ^ Galliard TIPS -~ ~0 (C6) - 3.~0 (6C) -0 8~ (39) Ni9 N,:~ N;A N-A $100.0 •Bucla~sCapitalUS TreasurvInllahonNotes 1-lOFear -5L (97) S1~ (97) -2~3 (77) X28 (82) 338 (61) 3.00 (72) 3R1 (95) 9i07 1~-07 3%08 6.08 9108 1~-08 -Galliard TIP S n~fedian ~ -2.83 -2.83 -1.~~ ~ 9°_ 3 39 330 ~3~ Bar~lws Capital II S Treasuit- LiflationNotes. 1-10 Fear 1 1. ' 1 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep-2008 .Jun-2008 Mar-2008 Dec-2007 Sep-2007 .Jun-2007 Galliard TIPS -2.89 (2U) U.03 (27) 5.67 (25) ~.9~ (66) N/A N/~ Pu~laj-s CapitalU.STreasui~InflationNotes:l-IOlear -2.90 (20) 0.23 (1~) x.70 (23) X88 (82) 3.68 (9~) -0.20 (12) US TIPS (S.1+CF) n-Iuhan -3-~5 -0 26 5 ~0 x.99 ~ ~~ -0 72 +~ Tltt-, BC}GDAHN ~, ~~a~P Page 32 of 39 Winter Springs General Employees American Stable Value Fund REIT December 31, 2008 ' 1 1 1 1V~Iarket Value Market Value As of Transfers Contributions Distributions Fees Expenses Income =lpprec.p~Deprec. As of 9/30/2008 12/31/2008 Americus Stable ti-alue Fund REIT 988 - - -7 _ ~' 1 1 1 1 Market Value As of T~ ausfers Contributions Distributions Fees 9/30/2008 - - -7~ 90~ Capital Markets"aloe Expenses Income As of Apprec/ Deprec• 12/31/2008 Ameiicui Stable ~-alue Fund REIT 983 - - -7 _ 1 u_uu 5.00 °.~.. 0 00 a L 7 a s 00 -1 a 00 -7~ 90~ $1100 3 $105-0 xloo~~ 1 Oct-2008 1 2 3 ~ 5 Quarter To Pear Years Years Pears Years Dec-2008 ^ Americus Stable \ aloe Fund REIT -7.53 (N ~) -7 53 (N'Al -5.30 (N%.~) N _~ N ~ N A N%.~ $95 0 • Real EstatePolicv 1 71 (NA) 1.71 (N'A) 7.00 (N_~) N.~ N~-1 N'_~, N ~. )i07 1~%07 3%03 6.03 9%03 1~%03 - _~merica~i Stable Val ue Fwid RE IT 1\Iedian ~ N'_~ N .~ N .~ N _A N _A N'A N _~ Real Estate Polity 1 1. ' 1 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep-2008 Jun-2008 Mar-2008 Dec-2007 Sep-2007 .Juu-2007 American Stable ~"aloe Fund REIT -0.30 (~~ L52 (22) 1.19 (61) 1.58 (71) N/A N/.1 Real EstatePoliej IJI (6) 1.71 (16) IJI (26) 1J1 (6~) N/A N;A US Yiivata Real Estate-Open End (S ~+CF ) n-Iedian -030 0.82 1 28 1.9~ 3.67 x.60 +~ TI tt-, BC}GDAHN ~, ~~a~P Page 33 of 39 Defined Benefit Plan & Trust for Employees of the City of Winter Springs Benchmark History As of December 31, 2008 Benchmark Police Total Fund Effective Date: Nov-2000 S&P 500 Indel 6.00 Barclays Capital Aggregate 30.00 MSCI EAFE 5.00 Effective Date: Oct-20[13 SAP 500 Indel 60.00 Barclays Capital Aggregate 30.00 MSCI EAFE 10.00 Effective Date: Sep-2006 S&P 500 Index 60.00 Barclays Capital Intermediate Aggregate X0.00 Page 3~ of 39 ~~ BC}GDAHN `' GRaCTI' Defined Benefit Plan & Trust for Employees of the City of Winter Springs Benchmark History Target Allocations As of December 31, 2008 Benchmark Police Total Epuit~~ Asset Allocations Effecti~-e Date: No~~-20110 S&P 500 Indel 90.00 MSCI EAFE 10.00 Effecti~~e Date: Oct-2003 S&P 500 Indel 85.00 MSCI EAFE 15.00 Effecti~-e Date: Sep-2006 S&P 500 Indel 80.00 MSCI EAFE 20.00 Benchmark Polio- Total Fred Tar6et Allocations Effecti~-e Date: Noy--21100 Barcla~~s Capital Aggregate 100.00 Effecti~-e Date: Sep-2006 Barclays Capital Intermediate Aggregate 100.00 Effecti~-e Date: Oct-2007 Barclays Capital Intermediate Aggregate 85.00 Barclays Capital U.S. Treasmti- Inflation Notes: 1-10 Year 15.00 Page 35 of 39 ~~ $C}GDAHN ~' GxaUP Statistics Definitions Page 36 of 39 Statistics Description Retm7i -- Compounded rate of returi for the period. Standard Deviation -- A statistical measure of the range of a portfolio's perTormance, the yaiiability of a return around its average return over a specified time period. Sharpe Ratio -- Represents the excess rate of rettu7i over the risk free rehu7i divided by the standard deviation of the excess rehu7i. The result is the absolute rate of reh~rn per Milt of risk. The lilgher the value, the better the producf s historical risk-adjusted peiTornance. Alpha -- A measure of the difference bet,yeen a portfolio's actual rehu7~s and its expected peiTonnance, given its level of risk as measured b~ beta. It is a measure of the portfolio's historical performance not elplained b~ movements of the market, or a portfolio's non-systematic rettu7i. Beta -- A measure of the sensitivity of a portfolio to the movements in the market It is a measure of a portfolio's non-diversifiable or s~ stematic risk. R-Squared -- The percentage of a portfolio's peiTornance elplained by the behavior of the appropriate benclnnark. High R-Square means a higher correlation of the portfolio's peii'ormance to the appropriate benclnnark. Treynor Ratio -- Sinillar to Sharpe ratio but focuses on beta rather than excess risk (standard deviation). Represents the excess rate of rettu7i over the risk free rate divided by the beta The result is the absolute rate of return per milt of risk. The higher the value, the better the producf s lilstoiical risk-adjusted performance. Downside Risk -- A measure similar to standard deviation, but focuses oiily on the negative movements of the rehu7i series. It is calculated by taking the standard deviation of the negative quarterly set of rett~rns. The higher the factor, the riskier the product. Tracking Error -- A measure of the standard deviation of a portfolio's pei~ornance relative to the peiTonnance of an appropriate market benclnnark. Information Ratio -- Measured by dividing the active rate of rehu7i by- the tracking error. The higher the Information Ratio, the more value-added contribution by the manager. Consistency -- The percentage of quarters tl~zt a product achieved a rate of rehzrn higher than that of its benclnnark. The higher the consistency figare, the more valve a manager has contributed to the producf s peiTonnance. Excess Reh~rn -- Aritlmnetic difference beriyeen the managers rett~rn and the risk-free rehu7i over a specified time period. Active Rettun -- Aritlmnetic difference between the managers rehu7i and the benclnnark rehn7i over a specified time period. Excess Risk -- A measure of the standard deviation of a portfolio's pei~ornance relative to the risk free rettu7i. p Market Capture -- The ratio of average portfolio rehu7i over the benclnnark during periods of positive benclnnark rehu7i. Higher valves indicate better product perTormance. own Market Captt~re -- The ratio of average portfolio rehu7i over the benclmnarh dining periods of negative benclnnark rettu7i. Lower valves indicate better product pei~ormance. Calculation based on monthh' periodicity°. ~~-. TFIE $C}GDAHN G~aU~