The URL can be used to link to this page

Home My WebLink About2009 02 17 Regular 600 All Cap Value Manager Presentation Supplemental Report 02/17/09Date: February 17, 2009 ATTACHED PRESENTATION REPORT EMAILED TO THE BOARD PRIOR TO THE MEETING. A COPY WAS ALSO MADE FOR EACH BOARD MEMBER FOR THE MEETING. City of Winter Springs General Employees' Retirement System All Cap Value Manages Presentation Supplemental Repot Presented February 17, 2009 WWW.BC~GDAHI~ICGR~~U['.CC~M THE BC~CDAH~T ~~4LJP sirriplifyireg yaarr investment acrd fzrlreriary decisions Table of Contents Firm and Product Summary Table Page: 1 Correlation to Lateef's All Cap Growth Pages: 2-3 Performance Evaluation Pages: 4-14 Holdings and Attribution Analyses Pages: 15-19 eVestment Alliance Strategy Narratives Pages: 20-24 Statistics Definitions Page: 25 ~~ THIS PAGE WAS LEFT BLANK INTENTIONALLY. r-------------------------- ------------------- ~• • ! ------------------. - ~: - 1 1 1 1 1 Anchor All Cap Value 1 i 1 AIICap Value i 1 i Focused Value 1 1 1---------------------------------------------- 1 1 ---------------------------------------------- 1 1 ------------------~-------------------------------y---------------------------------- 1 1 1983 1982 1 1 ------------------ ------------------------------- ---------------------------------- 1 1 -~--------------------------------y 1 1 1988 1 1 - -------------------------------- 1 1 1 y y 1 1 Boston New York 1 1 y y 1 1 Marblehead 1 1 1---------------------------------------------- 1 1 1 ------------------y-------------------------------y---------------------------------- 1 1 Massachusetts New York 1 1 1 -y--------------------------------y 1 1 Massachusetts 1 1 1---------------- _ .- _._. -------------- ~_ ------------------~-------------------------------y---------------------------------- ~ $6,369 $937 (9/30/08) -~--------------------------------y ~ $794 1------------.. 1 ----------------- ------------------;------------------------------ 1 -~- 1 --------------------------------- -;--- 1 -----------------------------~ 1 1 1 1 1 Separate Account 1 1 1 1 Separate Account 1 1 1 Separate Account 1 1 --------------------------- ------------------- 1 1 ------------------i-------------------------------i---------------------------------- 1 1 -i--------------------------------i 1 1 1 65 1 1 1 75 1 1 1 100 1 .=. m 1 ..; . ----------------- --------------------------------- ~ 363 ~ $215 1 9/30/08 - ------------------------------- ~ $591 1 ( ) 1 ; 1 ' 1 ' 1 1 1 1 1 - ------------------- ~ -------------- ------------------ 1 1 1 10 1 1 5 1 1 1 (9/30/08) 1 1 1 1 1 1 1 1 1 1--------------------------- 1 ------------------- ------------------~-------------------------------~---------------------------------- 1 1 -~--------------------------------~ 1 1 2 ~~ ~ 1 1 1 1 ~ ; , ~ (9/30/08) 1 1 1 y ~ 1 1 J 1 ~ 1 1 1 --- 1 1 J --------------- ---------- 1 • • - - +~ - +; 1 1.-------------- ---------- ------------------ ------------------------------- ---------------------------------- 1 1 20.00% 20.00% 1 1 ------------------1-------------------------------J---------------------------------- - -------------------------------- 1 1 51.00% 1 1 -y--------------------------------J 1 ; 1 1 1 1 80.00% 1 1 1 1 1 1 80.00% 1 1 1 1 1 --- 1 1 1 1---------------------------------------------- 1 ------------------+-------------------------------J---------------------------------- 1 1 ;Boston Private Financial; Boston Private Financial -+--------------------------------J 1 1 1 1 1 Holdings Holdings 1 --- 1 1 1 1 1 1 1 1 1 Relative Value 1 1 1 1 1 1 ~ 1 1 1 1 Relative Value 1 1 ~ 1 1 1 1 1 1 Relative Value 1 1 1 1 1--------------------------- 1 1 1 1 ------------------- ------------------~-------------------------------J---------------------------------- 1 1 1 1 50 ~ 33 1 1 1 1 -y--------------------------------J 1 1 1 ~ 33 1 1 1 1 1 '.--------------------------- ~ ------------------- 1 1 ------------------i-------------------------------i---------------------------------- ~ ~ 1 1 -i--------------------------------i ~ 1 1 1 1°------ 21% ~ 101% 1 1 1 1 -------------------------------a---------------------------------- 1 ~ 49% 1 1 1 1 1 1 -{--------------------------------a Page 1 ~~~. City of Winter Springs General Employees' Rolling Correlations: Lateef: All Cap Growth Equity 12-Quarter Moving Windows, Computed Quarterly o.a 0.6 c 0 .~ `o U 0.4 0.2 Zephyr StyIeADVISOR: The Bogdahn Group 0 Q4 2001 Q4 2002 Q4 2003 Q4 2004 Q4 2005 Q4 2006 Q4 2007 Q4 2008 • Anchor Capital: Anchor All Cap Value O DGHM: AIICap Value • MAP: Focused Value Created with Zephyr StyIeADVISOR. Manager returns supplied by: eVestment Alliance '~~ ~, Page 2 ~~_ City of Winter Springs General Employees' Zephyr StyIeADVISOR: The Bogdahn Group Rolling Correlations: Lateef: All Cap Growth Equity Rolling 12 Quarter Periods Dec 2008 Sep 2008 Jun 2008 Mar 2008 Dec 2007 Sep 2007 Jun 2007 Mar 2007 Dec 2006 Sep 2006 Jun 2006 Mar 2006 Dec 2005 Anchor Capital: Anchor All Cap Value 0.81 0.62 0.75 0.85 0.67 0.69 0.65 0.66 0.65 0.88 0.88 0.91 0.92 DGHM: AIICap Value 0.77 0.55 0.65 0.75 0.73 0.72 0.74 0.78 0.79 0.90 0.90 0.92 0.94 MAP: Focused Value 0.71 0.47 0.65 0.64 0.52 0.63 0.61 0.82 0.82 0.91 0.90 0.92 0.94 Lateef: All Cap Growth Equity 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Rolling Correlations: Lateef: All Cap Growth Equity Rolling 12 Quarter Periods iep 2005 Jun 2005 VIar 2005 ~ec 2004 iep 2004 Jun 2004 ~ec 2003 Jun 2003 ~ec 2002 Jun 2002 ~ec 2001 Jun 2001 ~ec 2000 Jun 2000 ~ec 1999 Jun 1999 Anchor Capital: Anchor All Cap Value 0.93 0.96 0.94 0.91 0.87 0.90 0.91 0.89 0.81 0.90 0.86 0.90 0.91 0.91 0.94 0.87 DGHM: AIICap Value 0.91 0.95 0.95 0.95 0.96 0.94 0.88 0.84 0.79 0.77 0.65 0.63 0.66 0.75 0.75 0.72 MAP: Focused Value 0.93 0.97 0.98 0.97 0.94 0.94 0.93 0.90 0.86 0.84 0.75 0.73 0.69 N/A N/A N/A Lateef: All Cap Growth Equity 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Created with Zephyr StyIeADVISOR. Manager returns supplied by: eVestment Alliance ~r~ Page 3 l';;r~; City of Winter Springs General Employees' Zephyr StyIeADVISOR: The Bogdahn Group Trailing Performance: Return through December 2008 10% 0% -10% c tY -20% -30% -40% ~ ~~ - 1 quarter 1 year 2 years 3 years 4 years 5 years 6 years ^ Anchor Capital: Anchor All Cap Value ^DGHM: AIICap Value ^ MAP: Focused Value Trailing Performance: Return through December 2008 7 years 8 years 10 years ^ Russell 3000 Value 1 quarter 1 year 2 years 3 years 4 years 5 years 6 years 7 years 8 years 10 years Anchor Capital: Anchor All Cap Value -18.51 % -26.73% -9.63% -1.65% 1.36% 3.83% 8.25% 4.49% 2.82% 5.03% DGHM: AIICap Value -19.39% -23.59% -10.22% -2.02% 0.31% 4.24% 9.33% 4.16% 5.67% 8.45% MAP: Focused Value -24.34% -40.83% -20.76% -8.85% -1.84% 2.79% 10.56% 8.62% 7.81 % 11.31 Russell 3000 Value -22.41 % -36.25% -20.56% -8.26% -4.70% -0.72% 4.00% 1.01 % 0.33% 1.69% Created with Zephyr StyIeADVISOR. Manager returns supplied by: eVestment Alliance '~~ ~, Page 4 ~~_ City of Winter Springs General Employees' Zephyr StyIeADVISOR: The Bogdahn Group Trailing Rank vs Universe: For the Periods Ended December 2008 eA US All Cap Value Universe 0% O ® 0 ~ • • a ® O O O 25% ~ Y a ~ Median ~ ~ 100% 1 quarter 1 year 2 years 3 years 4 years 5 years 6 years 7 years 8 years 10 years • Anchor Capital: Anchor All Cap Valt O DGHM: AIICap Value • MAP: Focused Value • Russell 3000 Value ^ 5th to 25th Percentile ^ 25th Percentile to Median ^ Median to 75th Percentile ^ 75th to 95th Percentile Trailing Rank vs Universe: Return Rank through December 2008 Median Rank Volatility of Rank 1 quarter 82 mng 1 year 82 mng 2 years 82 mng 3 years 82 mng 4 years 76 mng 5 years 73 mng 6 years 67 mng 7 years 57 mng 8 years 52 mng 10 years 43 mng Anchor Capital: Anchor All Cap Value 25 15 16 17 8 8 12 23 26 31 68 65 DGHM: AIICap Value 15 4 20 11 10 10 17 18 15 34 25 26 MAP: Focused Value 13 11 70 77 74 75 45 28 8 5 8 7 Russell 3000 Value 73 4 48 55 74 68 72 71 71 70 86 98 Created with Zephyr StyIeADVISOR. Manager returns supplied by: eVestment Alliance eA US All Cap Value Universe ~~ Page 5 City of Winter Springs General Employees' Zephyr StyIeADVISOR: The Bogdahn Group Calendar Year Performance: As of December 2008 c tY 60% 50% 40% 30% 20% 10% 0% -10% -20% 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ^ Anchor Capital: Anchor All Cap Value ^DGHM: AIICap Value ^ MAP: Focused Value ^ Russell 3000 Value Calendar Year Performance: As of December 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 Anchor Capital: Anchor All Cap Value 11.46% 16.48% 10.97% 14.29% 33.37% -15.50% -8.11 % -8.12% 42.31 % 10.10% DGHM: AIICap Value 5.49% 16.71 % 7.63% 21.53% 38.75% -22.08% 16.90% 22.03% 18.56% 9.48% MAP: Focused Value 6.12% 20.61 % 22.59% 23.60% 59.15% -2.32% 2.33% 24.48% 28.53% 12.85% Russell 3000 Value -1.01 % 22.34% 6.85% 16.94% 31.14% -15.18% -4.33% 8.04% 6.65% 13.50% Created with Zephyr StyIeADVISOR. Manager returns supplied by: eVestment Alliance r~ Page 6 ~'~,~_ City of Winter Springs General Employees' Zephyr StyIeADVISOR: The Bogdahn Group 0% 25% Y C CO c Median L N~ L.L 75% 100% Q4 2008 Q4 2007 Q4 2006 ® Anchor Capital: Anchor All Cap Valt O DGHM: AIICap Value ^ 5th to 25th Percentile ^ 25th Percentile to Median Q4 2005 Q4 2004 Q4 2003 Q4 2002 Q4 2001 Q4 2000 Q4 1999 • MAP: Focused Value • Russell 3000 Value ^ Median to 75th Percentile ^ 75th to 95th Percentile Calendar-Year Rank vs Universe: Return Rank Median Rank Volatility of Rank Dec 2008 82 mng Dec 2007 92 mng Dec 2006 92 mng Dec 2005 86 mng Dec 2004 83 mng Dec 2003 76 mng Dec 2002 64 mng Dec 2001 59 mng Dec 2000 55 mng Dec 1999 49 mng Dec 1998 44 mng Anchor Capital: Anchor All Cap Value 57 21 17 17 71 35 76 68 62 99 98 4 39 DGHM: AIICap Value 57 21 11 44 68 65 27 37 87 19 37 42 42 MAP: Focused Value 24 15 77 41 25 2 21 5 10 76 30 17 30 Russell 3000 Value 63 15 55 78 15 70 59 81 62 94 81 74 29 eA US All Cap Value Universe Created with Zephyr StyIeADVISOR. Manager returns supplied by: eVestment Alliance ~~ / Page 7 "~~~~„_~ Calendar-Year Rank vs. Universe eA US All Cap Value Universe O ® ® ~ _ ~ - -- -- -- -- ~ - -- -- O -- -- -- - -- -- -- ® -- -- ~ -- -- -- 0 -- -- - -- a -- -- -- - -- ~-- ~ -- -- ~ -- ® - __ __ 4 i __ ~ __ __ ® __ __ ~__ __ __ City of Winter Springs General Employees' Zephyr StyIeADVISOR: The Bogdahn Group Rank vs Universe: Rolling 3-Year Return eA US All Cap Value Universe c m c Me • Anchor Capital: Anchor All Cap Vali O DGHM: AIICap Value • MAP: Focused Value ^ 5th to 25th Percentile ^ 25th Percentile to Median ^ Median to 75th Percentile Rolling 3-Year Return • Russell 3000 Value ^ 75th to 95th Percentile Dec 1997 Sep 1999 Jun 2000 Dec 2000 Jun 2001 Jun 2003 Mar 2005 Sep 2005 Mar 2006 Dec 2006 Mar 2007 Dec 2007 Jun 2008 Sep 2008 Dec 2008 Anchor Capital: Anchor All Cap Value 23.03 17.80 16.36 12.91 7.72 -3.50 8.89 21.17 22.05 13.89 14.03% 12.94% 9.94% 5.30% -1.65% DGHM: AIICap Value 23.65 14.12 14.32 16.57 17.93 6.27 6.70 25.25 28.12 15.14 13.90% 9.84% 9.62% 5.74% -2.02% MAP: Focused Value N/A N/A N/A 21.77 19.90 11.42 20.19 37.85 40.91 22.26 21.10% 16.20% 11.30% 0.43% -8.85% Russell 3000 Value 30.97 19.52 10.27 9.36 5.37 0.57 7.48 20.81 22.46 15.20 14.42% 8.97% 3.34% 0.24% -8.26% Created with Zephyr StyIeADVISOR. Manager returns supplied by: eVestment Alliance ~r~ Page 8 l';;r~; Q4 1997 Q3 1998 Q3 2000 Q3 2002 Q3 2004 Q3 2006 Q4 2008 City of Winter Springs General Employees' Zephyr StyIeADVISOR: The Bogdahn Group 12% 10% 8% 3 6% a~ 4% 2% 0% Manager Risk/Return Longest Concurrent Timeframe: 11 Years Ended December 2008 0 ~% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% Standard Deviation • Anchor Capital: Anchor All Cap Value O DGHM: AIICap Value • MAP: Focused Value • Russell 3000 Value Risk-Return Table Longest Concurrent Timeframe: 11 Years Ended December 2008 Return (%) Std Dev (%) Downside Risk (%) Beta vs. Market Alpha vs. Market R-Sgared vs. Market Sharpe Ratio Tracking Error vs. Market Anchor Capital: Anchor All Cap Value 5.48 17.98 12.17 0.8658 3.35 67.48 0.1127 10.5080 DGHM: AIICap Value 8.54 20.63 15.08 1.0945 5.96 81.99 0.2466 8.9015 MAP: Focused Value 11.45 19.58 14.53 1.0377 8.87 81.81 0.4086 8.3742 Russell 3000 Value 2.71 17.06 12.78 1.0000 0.00 100.00 -0.0435 0.0000 Created with Zephyr StyIeADVISOR. Manager returns supplied by: eVestment Alliance r~ Page 9 ~'~,~_ City of Winter Springs General Employees' Manager Risk/Return Late Mutually-Exclusive Timeframe: 5 Years Ended December 2008 ® O 7°/ d°/ F°/ R°/ 1n°/ 17°/ 1d°/ 1F% 1R°/ 7n% Standard Deviation Risk-Return Table Risk-Return Table Late Mutually-Exclusive Timeframe: 5 Years Ended December 2008 Early Mutually-Exclusive Timeframe: 5 Years Ended December 2003 Zephyr StyIeADVISOR: The Bogdahn Group Manager Risk/Return Early Mutually-Exclusive Timeframe: 5 Years Ended December 2003 20 15% 10% 5% O[7° / 5% 10% 15% 70% 75% Standard Deviation ® Anchor Capital: Anchor All Cap Value O DGHM: AIICap Value • MAP: Focused Value • Russell 3000 Value Return Std Dev Beta Alpha RSquared Sharpe Return Std Dev Beta Alpha RSquared Sharpe (~) (~~ vs. vs. Market vs. Market Ratio (~) (~) vs. vs. Market vs. Market Ratio Market (/) (~~ Market (/) (~) Anchor Capital: Anchor All Cap Value 3.83 12.13 0.77 4.33 82.58 0.06 Anchor Capital: Anchor All Cap Value 6.25 21.57 0.87 3.18 56.00 0.13 DGHM: AIICap Value 4.24 13.44 0.86 4.86 85.28 0.08 DGHM: AIICap Value 12.83 25.48 1.25 8.45 82.16 0.37 MAP: Focused Value 2.79 18.84 1.13 4.23 74.58 -0.02 MAP: Focused Value 20.54 20.54 1.07 15.85 92.04 0.83 Russell 3000 Value -0.72 14.35 1.00 0.00 100.00 -0.27 Russell 3000 Value 4.16 18.50 1.00 0.00 100.00 0.04 Created with Zephyr StyIeADVISOR. Manager returns supplied by: eVestment Alliance '~~ Page 10 ~~_ City of Winter Springs General Employees' Zephyr StyIeADVISOR: The Bogdahn Group Histogram of Returns 11 Years Ended December 2008 a~ `m C~ 0 a~ E Z 1 1: 1i 14 12 N 10 a~ ~ 8 C~ 0 6 E z 4 2 0 < -20 -20 to -15 -15 to -10 -10 to -5 -5 to 0 0 to 5 5 to 10 10 to 15 Returns Range (%) Histogram of Excess Returns vs. Russell 3000 Value 11 Years Ended December 2008 i11~1 . <-6 -6to-4 -4to-2 -2to0 Oto2 2to4 4to6 Excess Returns vs. Russell 3000 Value Range (%) ^ Anchor Capital: Anchor All Cap Value ^ DGHM: AIICap Value ^ MAP: Focused Value Created with Zephyr StyIeADVISOR. Manager returns supplied by: eVestment Alliance '^~ Page 11 ~~~~~' City of Winter Springs General Employees' Zephyr StyIeADVISOR: The Bogdahn Group 1 X W Annualized Excess Return /Standard Deviation of Excess Return 11 Years Ended December 2008 0% 8% 6% ----- ------------- ------------ ------------ -------- --- - ------ ----- ----- 4% 2% 0° Q % 2% 4% 6% 8% 10% 12 Standard Deviation of Excess Return vs. Russell 3000 Value ® Anchor Capital: Anchor All Cap Value O DGHM: AIICap Value • MAP: Focused Value • Russell 3000 Value Rolling Risk Statistics: Alpha Rolling Risk Statistic: Information Ratio 12-Quarter Moving Windows, Computed Quarterly relative to Russell 3000 Value 12-Quarter Moving Windows, Computed Quarterly relative to Russell 3000 Value 20% 15% ------- -- X10% - ---------------------------- ------------------- ~ I Q I Q 5% ---- ^ --------------------- ------- - - - O 2.5 2 ~ 1.5 C O '~ 1 0 0.5 C 0 0.5 -1 Q4 2000 Q4 2001 Q4 2002 Q4 2003 Q4 2004 Q4 2005 Q4 Created with Zephyr StyIeADVISOR. Manager returns supplied by: eVestment Alliance Q4 2007 Q3 2008 Page 12 4 2000 04 2001 04 2002 04 2003 04 2004 04 2005 04 2006 04 2007 03 200 ~~~~ tl City of Winter Springs General Employees' Upside vs. Downside Capture Late Mutually-Exclusive Timeframe: 5 Years Ended December 2008 0 v v .N Q 140 130 120 110 100 0 Q 95 0 60 70 80 90 10 0 Downside% Single Computation 150 140 130 v 120 110 100 Zephyr StyIeADVISOR: The Bogdahn Group Upside vs. Downside Capture Early Mutually-Exclusive Timeframe: 5 Years Ended December 2003 i5 70 75 80 85 90 95 10 0 105 11 Upside vs. Downside Capture 11 Years Ended December 2008 Downside% Single Computation ® Anchor Capital: Anchor All Cap Value O DGHM: AIICap Value Created with Zephyr StyIeADVISOR. Manager returns supplied by: eVestment Alliance 0 0 v v .N Q 90 Downside% Single Computation • MAP: Focused Value Page 13 95 100 • Russell 3000 Value 0 ~~ City of Winter Springs General Employees' 160 140 120 100 80 60 40 20 n Multi Statistic Graph ~i Batting Up Capture Down Capture Average Ratio Ratio ~ Anchor Capital: Anchor All Cap Value ^DGHM: AIICap Value 12 10 8 6 4 2 Zephyr StyIeADVISOR: The Bogdahn Group Multi Statistic Graph Excess Return vs. Market ~ MAP: Focused Value Multi-statistics Summary Table: 11 Years Ended December 2008 Information Ratio ~ Russell 3000 Value Treynor Ratio Batting Average # of Up Periods Up Capture Ratio # of Down Periods Down Capture Ratio Excess Return vs. Market Information Ratio Treynor Ratio Anchor Capital: Anchor All Cap Value 43.18% 30 101.80% 14 82.43% 2.77% 0.26 2.34 DGHM: AIICap Value 63.64% 28 130.28% 16 88.07% 5.83% 0.65 4.65 MAP: Focused Value 72.73% 29 145.42% 15 82.10% 8.74% 1.04 7.69 Russell 3000 Value 0.00% 29 100.00% 15 100.00% 0.00% 0.00 -0.74 Created with Zephyr StyIeADVISOR. Manager returns supplied by: eVestment Alliance r~ Page 14 ~'~,~_ City of Winter Springs General Employees' Analysis fate; 92i31~2UC8 10Q.00 SPDR ~~OLD TRUST -OCCIDEP•JT.~L-PETE CORP- JOHhJSOh~J 8. JOHh~JSOh•J --- COU~:ATE P.ALPv1OLl'4~E CO G E P•J~YPs,1 E C O RP---------------- ------------------ :~"Oh-J CORP '."a`ELL3 F?"RGO & CQ NE'".'V-- ------------------------- STJUDE L~1ED IhJC _ _ C O'•;'I D I E h~J LTD -- ------ ------ - ---------------------- PEPSICO Ih•JC 3 Pal -C 0 ------------------------------ HE.~"LTH CARE REIT Ih•JC COP."1 C.~_ST-C O R P -h_J E :"`'__------ nBBOTT L~"BS CHIslBf3 CORP ------ ---------------------------------------- Pv11LLICOPv1 IhJTLCELLULAR COCA COLA CO_________________ HCP Ih~JC C O P`J O C O P H I_LLI P S_____________ "hJh-J?"LY C?~"P F~1~~P~,=1T IhJC --------------------------------------- DU POhJT E I DE IJEP5,IOURS .AFFILI.ATED COh~1PUTER SE "h~J_AD?"R_P4O-PETE CORP------- EhJDUR-AC~JCE SPECIALTY HL ------------------------------------------ TIP;~1E'~'~~:~,F~NER G:~,BLE IPJC ----------------------------------------- PROGRESS EhJERGY IhJC --------------- ¢ ----------------------------------------------------- ; UNITED STATE S CELLULAR ; U S P,~1 1.91; Te I e co m m S e ry'i ce OY ---------- ---- 3.49Energy -~----------------~----------------------------------- ~ ~-------------------------------------------------~--------------- - --; ~'";~~ D.~"F ~ h~J E ~~ R ~ U P PLC h~J E':°;' ;'a'O D ---------------~------------------------------------- 1.8 9 ; Te I e cry 1Y1 rr~ S e r,~'i ce J h~JJ --------------- ! ~ 3. ~ 8 ; H e a Ith Care ---------------------------------------------------- ' -----------------------------------------------------------------~ - ; D RE.~'"hrT:"r+0 RI4S :~"hJ I P41.ATI O P~J S D'.h+:~ ---------------,------------------------------------- 1.8 9 C r~ n s u n~ e r D i s creti o n a rp' ~ C L ---------- ---- -~- 3. ~ 0 C o n s u m e r Sta p i e s ---------------~----------------------------------- ~~-------------------------------------------------~---------------; - -- S E P;"1 P RA E PJ E RGY ; S RE ---------------~------------------------------------- 1.8 0 ; Uti I iti e s G E I;JZ --------------- ! ~ 3.3 B ; H e a Ith Care ~ ------------------------------------------------- ;---------------~ ----------------------------------------------------- ; ~"LLST.~"TE C O RP ; .ALL ---------------,------------------------------------- 1.7 8 ;Financial s .AO C ~. 91 F i n a n ci a l s I~-------------------------------------------------~---------------~- ---------------~------------------------------------- ---------- ---- " rF C ' -~----------------~----------------------------------- ~ 2 8 71 F i i l --; ZI Ps~1 P,a1 E R H LD G S I h~J C ; ZPv1 H 1.7 0; H e a Ith Care r . --------------- ~ . n a n c a s ~------------------------------------------------- ;---------------~ --------------- ;------------------------------------- ; C I h~"1T.~"S C O R P ; CT.~ S --------------- ;------------------------------------- 1.51711 n d u stri a l s STJ 2.85;Health Care _ ~ ~---------------- ---------•- ----------------------------- ---------------~-------------------------------------~ -------------- C O'~ ` -'- -----------~--~----------------------------------- 2 6 ; H e a Ith Care --; QU.~"LC 0 P•,1 P,~1 I hJ C ; QC 0 PM1 ; - 'I.4.~ ; I nfe rr~°r ati o n Te cP7 n o I n g~y , , -_________-____ ~ ¢ . , ---------------~ ------------------------------------------------- _____________________________________________________; Pti~1ICROSOFTCORP PsF1SFT --------------- ------------------------------------- 1 391nfon~nationTecP7nelagy PEP 2.r77ConsumerStaples . ---------- ---- Ps~1 Pal P~a1 -~----------------~----------------------------------- ! ~ 6 ~ ;Industrials --; RO'.°~`.Ah~J COS I h~J C ; RD C . - 1.3 9 ;Energy' , -_________-____ H C PSI ¢ . ____________________________________________________ 2.5 5 ;Financials - -------------~ ------------------------------------------------- _; OLD REP IhdTL CORP ORI 1 ~-------------------------------------------------~---------------~- --------------- ------------------------------------- 1.38~Financials ---------------~-------------------------------------~ -------------- C P~~1 C S A -'- ~ ---------------~ ~ 5 S; C o n s u m e r D i s creti o n a r'~ S C H E I hd H E P;J RY I h<J C ; H S I C 1.31 ~ H e a Ith Care ' ; . -_________-____ ¢ . ~------------------------------------------------ ;- -------------~ _____________________________________________________i GOODRICH CORP 1GR --------------- ------------------------------------- 1 2~;Industrials ' .ABT 2.~4Health Care ; ~-------------------------------------------------~---------------~- . ---------------~-------------------------------------~ Cf3 ! 2 4~#;Financials h~J.~"TIOh•J'.°e1DE HEALTH PPTY ;h~JHP 1.2~;Financials Pv11CC . 2.3BTelecomrn Ser4'ice TELEPHOP~JE 8, D_~"T.ASYS I__________--;TDS S______;- --------1.18'Telecolrim Ser_;ice------------ ICO 2.3O;ConsumerStapies 1 COP;JSOLID.ATED EDISOhJ IN ;ED 1 10 Utllltles HCP -------- ---------- ----- 2.23; Financials LIOhJSG?"TEEC`JTP;~1h~aTCORP LGF ------------ --------- - ------- , _ ________________------ 17.99Ccnsur~nerDiscretionary' 1 --------------------------- --------- COP --- ---- - - ---------2.2 Cl ; E n e rg ~r ------------------------- ;BTU -- P E ;~.B O DY E h•J E RGY C O RP 17.9 5 ;Energy hJLY _ _ _ 2.'IBFinancials _ __' f3.~"KE R HU~HE_S Ih~IC If3Hl C1.~J2Energp' ---------------------- ------------------ --- DD 212~P,,laterials _ _ TIP~1E'.'~Rh•JERIh•JC T~:~;~: 0.87;ConsumerDiscretionary --------- ETR---- --- - ¢ -------- _____________________ -------- 2.1.2 fUti l iti e s---------------------------; I h•JTE G RYS E h~J E RGY G R O U P ; TE G ; 0.8 ~ ~ Uti l iti e s .ACS 2 0~# Information Technology° . i EhJ~;~hJ=~ CORP ;EC:~" --- --------------------------- 17.817;EnergY ~.PC ,_ 1.97;=nergY TE'~?A PH:~"RPs~1:~"CEUTIC?~.L IhJ 1TE~b~.A ~ 17 75;HeaItP7 Cafe EP°JH 1.95;=financials T'~'~~C 1.93~~onsumerDiscretianary PGh~J 1.92;Jtilities Summary holdings analysis generated from Thomson Portfolio Analytics; composite holdings obtai ned from investment manager. ~~ Page 15 ~~_ City of Winter Springs General Employees' f}a#e: 92;37~2dd8 Anal~~sis [?ate: 72~'31~2dd8 'Idd.dd 1dd.dd TELEPHOhJE & D.+iT.='; SYS I iTDS 4.59;Telecamm Serdice OC~~IDEhJT~.LPETECORP 10f.'Y` 4.2rJ;Energ~r STJUDE P1E^ IPJC iSTJ 3.b3iHealth ,are hJST.~°R ihJST 3.57iUtilities TRM'd'ELERS COP;~IP~.PdIEB IPd !TR~s1 3.~diFinancials KELLOJ~.] CO ~l~ 3.T?;Cansur7~er Staples 3Pa~1CO iP41P41P41 3.T7ilndustrials CITYPJ.~,TLCORP ~CYhJ ~ ~ 3.~biFinancials --------------------------------------------- QUEST DI.~GhJOSTICB IPJC -- -------------- ! DG~_______ ----- -- _________ --------~i---------------------------------- __ 3.4b'Health Care PU3LIC S°~xC EPJTERPRISE PEG 3.4.4; Utilities TELEFLE.'~IPJC !TF 3.4'IiHealthCare -------------------------------------------- EhJ;~N.~CORP --~----- g- ~EC.~ 3.3~J;Energr -------------------------------------- - GE`JER-~°LDYPJ?°hr11CSCORP !GD 3.38ilndustrials KRO G E R C 0--------------------------- --'KR---------- -----'-- --- 3 3 3 ; C o n s u m e r Sta p l °s-------- '~,'ORPJ.~.DO RLTYTR ~~+~`hJO 3.23; Financials PEOPLES UPJITED FIP•J.°4PJC1 ~PBCT 3.1 d; Financials Dom;'; IT.~° I hJ C----------------------------- --~~..-~r~, -------- ----- -- --- 3 d 9 i H e a Ith Care ----------------- ::+HITIPJG PETE CORP hJE:"r+ ~7."JLL 3.d4iEnergr ':"d.~STE PV1GPv1T IFJC DEL Iih~PV1I ; 2 d3lndustrials ------------ REhJSUR.KPJCEGROUP.~,Pv1ER -- ________ ~RG?. _____ _ 2.9'I;Financials TIP°1E l"e+.~°RPJER IPJC ---- T:~+~C ---- i 2 ?7iCansumer DISCretlanary` EB.MY IhJC 'Ef3.AY ' 2 75! lnfan-nation Techn~l~gy ________________________________ IhJ`~ESCO LT^ ------ __ ;Pd'Z ----- -- --- -- 2.52; Financials OLD hJ.#TL P3.~hJGORP' IhJb OP•JB 2 69; Financials _____________________________________________ PIChJEERPJ.~TRESGO __~______________ ;P?GD _____;__ ______F__i_______________________-__________ 2.,,5;Energ~r DO°o~ERCORP ~DO'd 2.ti2;lndustrials TER~.DKT.~. CORP DEL iTDC 2.44i Infon~7afi~~n Technolagp° G.~P IhJC DEL iGPB 2..,d!CansumerDiscretianar° J P P;~IORGAhJ CH?~,SE & CO ;JPP~r1 -- ---2.36'Financials------------------- COLLECTI'b'Ef3R+~.PJDBIPJC iP85 2.33iCansurrrerDiscretianarp° LUf3RIZOLCORP ;LZ 2.22 P.laterials PPG IPJDS IPJC .PPG '1.95;P;~laterials IPJTERPJ.~°TIOhJ:~°Lf3USIhJE88 iIf3PV1 i °I.88~InfarmatianTechnology :~SS~,RED GLI.a,R.~r<JT'( LTD i.+~GO i 2.47;FiP7ancials f3.~.hJCORP RHODE ISLKPJD I if3.ARl d.bliFinancials B?.~TER IhJTL IPJC ;B.Aif 3.~9;Health Care PE.~,f30DYEhJERG1`'GORP if3TL! 2.7aiEnerg?r COPv1Pv1ERCI.~L P~1ET.~°LS CO iCiv1C ~ ~ 3.4diPVlaterials ---~-----------y---------------------------- C.°,LPIhJE ORP --- ------------------ --- ;CPPJ ------- 3.'17iLltilities EDISOhJ IhJTL 'EIX ' 2.69;LJtilities _________________________ E~~T :"B"EST f3.APJCORP IPJC - _______------ ___ ;El"~'BC 4.23iFinancials GIJARAhJTYFIh~JLGROUP IhJ iGFG 'I.95iFinanci3ls G O LQ het~P•J S?.C H S GROUP I N ; G S 3.3 2 fF r o a n ci a l s -- --------- -------------- - - - - C_O CA C O L=; C 0 --- -------------- ;--- 'ISO ' --- ------------------ - - 3 d 8 i C a n s u i_rr e r Sta p i e s - --------------------- -- ---- 14~°PJS.RSCITYS~~UTHERP°J --- -------------- --- ;PCSU --- ------ - 'I_u_8~Industrials ______------;--- P;~1DLJ RES GROUP IhJC 'P~f1DU ' --- ___________________ 3 56Utilities ____________ ------------------- - - - P;~U~ICIPdb°TCORP'.'dIS ----------------------- - ----------- ------ _______________------ ___ - ;P,~1TG 2.83iFinancials P~r1UE_LER :"QTR PRODS IPJC jPM1'!4'.A d.56;lndustrials P;~14JE_LER'.";TR PRODS IhJC ;Pu1'.h+.~.f3 6.39ilndustrials PJE::'FIELDE?CPLCO 'PJFX ' 2.5diEnergy _______________ hJORTHE?_ST UTILS ------------ - ___ hJU ; 3.67Utilities ________________ hJE:XEP~J INC -------------- - ___; ;hJX'f 4,59;Energr OLD REPIPJTLCORP ;ORI 3.52iFinancials ----- ---------- P~.P?~.JOHP•JSIPJTLIPJC R~hJ~~E RES CORP -- -------- - jP2;Z#___________!___ ; RRC -- __ - _-- ___34'ICansurllerDiscretianary° 2.59 Energy ---------------- R~YO PJ I E R I PJ C ---; - ________---- ! RYPJ ! ~ d ti ;Financials ---------------------- -------- -------- S.~;FETY IPJS GROUP IPJC ------------ --- --- 5";FT --- ----------------- - 3.38'Froancials _______-- SHER'.^,'IhJ :"~+ILLI:~°PW1S CO --- _______________ iSH'.~+ ____________------ - ___ 2.6diConsurrrerDiscretian~ry SOUTHERP°J CO ; _SO 3.d8Utilities _____________________ --------------------- - .ATB~T IhJC - __________---- ___ -- iT ---------- ---------------------------------- 3.79;Telecorrrm Seri°ice TRn's'ELERS C4Pv1P~.P~JlEB lhd ITR~' _ 3.2diFinancials ?°h~1ERC0 iUH.~L 2.ClSllndustrials ____________________________________________ :"~ESTERPJ DIGITAL CORP ___i "________________ ~___ ;'.ADC i _________~__________________________________ 1.12Infarmation Technology :"BELLS F?°RGO &CO PJE'~'~+ is"dFC 4.°I2iFinancials Pv1EPs°1CELECTRPvt~°TLSIhdC i::''FR i -2_d1'InfarmatianTechnalagy° l"~+IhJhJ DIzCIE STORES IhJG i',"a`IhJhJ 3,d6iCansumer Staples :".`ELLPOIPJTIhJC. ;''.'.+LP 1.67,HealthCare Summary holdings analysis generated from Thomson Portfolio Analytics; composite hol dings obtained from investment manager. //~~ Page 16 ~'~~4~= .. City of vUnter Springs General Employees' Holdings-Based GICS Sector Attribution Analysis 3-Year Analysis Ended 12/31/08 GICS Sector l~~s° Russell 3000 Value 7 2`37`2005 - 7 237 ~°2008 Er~ergy° ~;°lsterials ---------------------------------- Industrials Consumer Discretionary - -------------------------------- Consurrrer Staples Health Care ---------------------------------- Financials Information Technology° ---------------------------------- Teleccmrm Seru~ice Utilities ---------------------------------- h~J?.~ ~,~laterials Industrials - --------------------------------------------------------- Consun7er Discretionary Consumer Staples - --------------------------------------------------------- Health Care Financials ----------------------------------------------------------- Information Technologp• Teleccmm Ser~~ice - --------------------------------------------------------- 4.itIIItIeS h~1J.~ Attribution Analysis ~~°00; 700°00i -3.75; -22°80i -3.75; -22°80i 7°92; 77°~3~ 79°65; 18.'18; 14.'17; -13.06; 22.43r 1.2v~; 1.89. 1.'a9; -2.`32 -0.73; G.36; 4.19; -4.09; -23.88; -x.71; -0.84; 0.35; -1.44; -1.019; 2.35; 8.96. -31.50; -19.47 -2.50; -2.64. -0.48; 0.0~~~ -0.40; _-8 35; 8.58; -23.10; -38.18; -1.98; -3.30; 0.22; 1.08; 1.29; 8.78; 7.53. 28.'191 96.57. 2.621 0.58. O.~Oi 1.58? '1.971 11.43; 7.76; 9.99; -3.16; -1.50; -0.05; 1.00; -0.28; 0.72; 20.74. 32.34; -1.07; -52_B9; 0.'~b; -~17.2~; 4,72; 9.82; 14.54; 8.90; 4.35; -21.11; -39.21; -0.93; -1.57; -0.20; 0.55; 0.3'5; 10.82 5.69; 3.68; 6.90; 1.84; 0.43; 0.84; 2.55; 3.39; _-3 25 h.43; 10.29 9.27; -0.1u~ 0.54; -0.61 ~ -0.27; -0.88 0.84; 0.01; -0.38; 21.85; 0.36; 0.01; G.08; 0.41; 0.48; 00.00; 700.00; -6.60. -22.80; -6.60. -22.80; -7°63. 77°83; 76.27 13.87; 14,17; -8.99. 22.43; 0.27. 1.89; -0.66. -1.09; -1.75. ----- 5.56; 4,19; 36.04; -23.83; 1.88; -0.84; -0.40; 3.06; 2.66; 10.26; 8.96; 13.43; -19.47; -0.76; -2.64; -0.25; 3.34; 3.09; 12.27; 8.58; -20.36; -38.18; -1.43; -3.30; -0.84; 2.55; 1.72; ------ __`'_93; 7.53; 11.4vei 1b.57; -0.1bi 0.58; -0.211 -0.19; -0.401 7.91. 7.76; -7.19; -3.'16; -0.77j -0.6u~; -O.f13j -L1.52; -0.54; 25.83; 32.34; -23.'12 -52.69; -5.85. -17.25; 2.01. 9.68; 11.69 --------~--------------•-----------f-----------;-----------f-----------;-----------f-----------;-----------i 7.72; 4,35. -21.57; -39.2'1; -0.53; -1.57; -0.20; 0.27; 0.06; --3.41 ~ 5.69; -29.48; 6.90; -1.45; 0.43; -1.09; -0.20; -1.29; ------ --~--------------•-----------f-----------;-----------f-----------;-----------f-----------;-----------i 7.16; 6.43 24.35; 9.27 2.21; 0.54 -0.02; 0.96r 0.93; --------~-------------f-----------!-----------f-----------!-----------f-----------!-----------f-----------; 0.08; 0.01; 0.00; 21.85; 0.00; 0.01; 0.06, -0.02; 0.04; Attribution analysis generated from Thomson Portfolio Analytics; composite holdings obtained from investment manager. /~~ Page 17 ~'~~_ ~: City of vUnter Springs General Employees' Holdings-Based GICS Sector Attribution Analysis 3-Year Analysis Ended 12/31/08 GICS Sector~~s, Russell 3000 Value 92~37~2005 -9 -FDCIJSE[}V,4LUE ~ RU3000-fir P•,~laterials Consumer Discretionary Consurrrer Staples ---------------------- ---------------------- Health Care Financials _ Inf~rrnation Technologp~ ---------- Telecarrrln Serv~ic~ l~tilities ---------- ------------ --------~ hJ1.~ 700,00; 70U,00 1fl ~1~1; '14 97i ---6.5 3 --------4.19 _13.15; 8.96. 15.3 8 ; --------$- ---3.16; 7.53; ---4.34. 7.76; _22.04; 32_.34. 10.5'1; --------~ 3 5 i _ 0.22; 5.b9~ 13.6 7 . -------6.43 --- 0.0 0 ; 0.01 -25,03 -.~ ~Q~ -66 80 -X4.20; -_66_~JS~ _21.86; 40 41 -28._64; -30 15' ---h.46 ---~-~~ _--0 00 Attribution Analysis -U.77; -~ -:~ 9 F i -d _0 66 ~ ----Cl. -0.51 ~-- -0 -22.80; -- _23 83 -19.47 ~. 38 18 16.57;. --- -3.16 --_-'52.69 ~. __ _39 21; fi.90~. _-- --9 2 7 21.85;. -28,U3i -22,80; -2.07 -1 ip; ~ P~lj -9 4p _ C1.~7 -0.8~; 0.58 -5.90; -2.64. 0.11 -13.96; -3.30; -1.31 _--0 94~ 0.58_; __ -1.28 -- ~=~ 2 ~ ----~ =~=" -- -0_~-4 -6.07; -17.2v'~ 2.14 1.89; -1.57; -0.76 0.22; 0.43. -17.95 ------- _1.77; 0.54; 1.34 _--0 00 0.01; -0.01 0.30 7.32 i _ 9.4.6 - 4.~ 1-5 ~ ----3.3 9 -IJ.04~-_- -0.99 --1=~-5' ----0.0 2 0.00 ~-- _0.0'1 Attribution analysis generated from Thomson Portfolio Analytics; composite holdings obtained from investment manager. //~~ Page 18 ~'~~4~= .. City of vUnter Springs General Employees' Holdings-Based Market Cap Attribution Analysis 6-Year Analysis Ended 12/31/08 ~ulrirket lialue vs. Russell 3000 V~ilue ~21~31f200Z -12131!2003 Attribution Analysis r ~4C1!' ~COfa1PC~SITE~ 1 RU3000-~' 100.00; 100.00; 78.25; 26.5U 78.25; 26.50, 5.~~ 46.43; ~1.i5 Buckets 1 6.51; 9..57'. 99.31; 36.52. 11.97; 6.13; 0.964 . 0.47; 1-~~ Buckets 2 33-95; 19..22; 67.20. 30.06; 38.65; 8-39. 3.[131 ; 12-51. 15..54 Buckets 3 17-73; 14~04~ 95.14; 36..65; 11.13; 7.75; -0..83 . 11.45; 10.62 Buckets4 37.31 44..26; 70-35; 14..19: 17.44. 2..93. 2-608 ; 23-47~ 26..08 Buckets 5 4200; 12..91; -28.49; 40.75; 0.84; 1.33; -0..46 ; -1.47; -1 93 LL ~C#~P ~#ALl1E ! RU30i30~-V 1C10.f~0~ 100.0}(}; 72.58 26.54; 72.58 26.5f}~ 7.89 ; 38.18 46.08 Cap Buckets 1 Cep Buckets 2 --------------------------- Cap Buckets 3 cap Buckets 4 --------------------------- Can Buckets 5 ~' RU3000-'U' lulkt Cap Buckets 1 ----------------------------- I'~1kt Cap Buckets 2 ----------------------------- h~+14~,t Cap Buckets 3 ----------------------------- hJlkt cap. Buckets 4 ----------------------------- hulkt Cara Buckets 5 ~ ~ ~ r :, Mkt.. ~.ap...Bucket.. ~....~s m a I.~.. ~.~ E~~ ...........................$................. 2 ,000 ,000 ,000 .............................. Mkt... a.F~..Bucket.. 2...~m.! d...c ~.P) .............................. x..............10 ,000 ,000 ,000 ................................. Mkt„ C.a~..B u c k et..3..(m i d!I a r.0.e . c al~,~ ................ $......... 20 ,000 ,000 ,000.... .......................... Mkt Cap Bucket 4 large caps .$ .200,000,000,000 Mkt Cap Bucket 5 ['mega" cap) Infnity 12..991 9..57'; 132..961 36.52; 22.621 6.131 4.619; 6.721 1134 33-.94; 19..22; 69-29E 30.06; 28.18; 8.39; 1.294; 16.42; 17..72 16.49; 14.,04; 104-74; 36.65; 13..41; 7.75; 1.119; 10.29; 11..41 --33-93; 44,.26 50..32; 14..19; 9..43; 2..93; 1.647 7-50; 9..15 ---2-65; 12..91; -23-15; 40.75; -1.06; 1.33; -0,.79; -2-75. -3..54 144.44. 144.44; 8'1.99; 26.54; 81.99. X6.54; 13.28; 4~.~4; 55.48 --3699; 9..57'. 45.89? 36.52; 42.02; 6.13; 9.345 15.19; 2453 --39-71; 19..22; 81.99; 30.06; 38.72; 3-39. 0.573; 25.27; 25..84 910; 14-04. 19-78E 36.65; -0.12; 7.75; -0.72; -5.11; -5-83 --1.2.35; 44..26; 55.,30 14..19; 0..93. 2.93. 4.199? 5.92. 10.12 ----1.35: 12..91; 1-19. 4075; 0..33; 1..33; -0-13; 0.95; 0.32 Attribution analysis generated from Thomson Portfolio Analytics; composite holdings obtained from investment manager. '~ Page 19 ~~_ `~~-. City of Winter Springs General Employees' Anchor Capital Advisors LLC December 31, 2008 Anchor All Cap Value -Active eASE Profile: Product Narratives INVESTMENT STRATEGY The firm's All Cap Value investment philosophy is to invest in those securities that will provide clients a superior return over time, while always maintaining prudent and appropriate levels of risk. They believe in investing in sound companies with strong outlooks when they are available at attractive prices. They also believe that capital preservation is as important as capital appreciation in achieving long-term investment success. The firm uses abottom-up, value-driven, highly disciplined security analysis approach in selecting securities for their All Cap Value discipline. The objective of their process is to identify opportunities that are undervalued, have moderate downside risk, and a high probability of above average returns. -Value Driven - Quantitative Screening & Modeling - Fundamental Research /Bottom-Up Analysis - Up & Down Side Review Prices /Sell Discipline -Team Approach The ultimate investment decision is made by the individual portfolio manager. However, portfolio managers may not deviate from the Investment Committee's buy list. Managers select which stocks to include in a portfolio based upon a written statement of the client's objectives. All portfolios are reviewed on a regular basis by the portfolio manager as well as the portfolio manager's peers to ensure that client portfolios conform to firm policies. SCREENING PROCESS The firm's investment process utilizes a combination of quantitative screening, fundamental, hands-on analysis, and company visits. Drawing from a universe of 5,000 securities, the firm screens for low valuation based upon the following criteria: 1) low price/earnings ratios in relationship to the market as well as the company's peers, 2) high current dividend yield and growth, and 3) stock market valuations at large discounts to private market value. Securities meeting these criteria are the focus of more intensive fundamental analysis, including internal financial modeling, Wall Street research, company visits, and competitive analysis. PORTFOLIO CONSTRUCTION METHODOLOGY Ultimately, the objective of the All Cap Value investment process is to identify those stocks which are undervalued, have moderate downside risk and a high probability ofabove-average return. Once a candidate stock has gone through this process it is presented to our Investment Committee for inclusion in our All Cap Value portfolios. BUY/SELL DISCIPLINE A buy list is generated by Anchor's Investment Committee, which meets formally every Tuesday and informally during the week as needed. Stocks on the list are used in a model and portfolio managers can only deviate from the model to take into consideration restrictions on the portfolio, such as no tobacco, or a tax consideration. Initial, minimum and maximum individual holding weightings: Minimum holding weight: None Maximum individual holding weight: 10% at market, 5% at cost. Initial holding weight: Generally 2% +/- for a combination of factors including relative liquidity characteristics. Capitalization Range $1 billion and greater The firm's equity sell discipline is based upon predetermined price targets on both the upside and downside. As stocks approach these designated targets, we identify key change factors which can lead to a buy, sell, or hold decision. The criteria we use for a sell are: (1) achievement of predetermined price targets, (2) negative changes within the company, (3) more attractive alternatives exist. TRADING EXECUTION STRATEGY Anchor trades with brokers who work the firm's orders to achieve best execution. The firm monitors best execution by checking the time and sales in Telemet against our execution prices. They monitor the settlement process to ensure trades are processed correctly and evaluate brokers on how they perform in handling our trades. ADDITIONAL COMMENTS The following is what we consider to be the Anchor's competitive advantages: Page 20 ~~~: City of Winter Springs General Employees' -Proven, time-tested value investment management approach -Strong and consistent performance record -Strength in researching and understanding companies and industries -Efficient decision-making by senior investment professionals //~~ Page 21 ~'~h4~= .. City of Winter Springs General Employees' Dalton, Greiner, Hartman, Maher and Co., LLC December 31, 2008 AIICap Value -Active eASE Profile: Product Narratives INVESTMENT STRATEGY DGHM's overriding goal is to be a leading practitioner of fundamental analysis, constructing a lineup of specialty products with along-term, value orientation that achieve highly competitive risk-adjusted returns for clients. The DGHM investment philosophy focuses on purchasing very good businesses when they are out of favor, or priced at a discount to their peer groups. The investment team targets the ideal tradeoff between valuation, profitability, and capital efficiency. DGHM conducts intensive due diligence on all securities that enter the portfolios, and seeks to uncover the key catalysts that will drive a stock price higher. As DGHM believes their core competency is stockpicking, all sectors are within a band of 75% to 125% of the respective sector in the relevant benchmark. This allows DGHM to place their active weights in a manner to derive alpha from stock selection, as opposed to sector rotation /market timing. SCREENING PROCESS The heart of DGHM's process is in-depth fundamental research. DGHM's portfolio's embrace a team approach, whereby eleven experienced sector specialists (10 of which are CFA's) work on this product. DGHM believes that this best allows their team to know the names in their portfolio very thoroughly. The universe is first screened with a proven, proprietary multi-factor model in order to narrow the universe to a select group of companies that have a high probability of outperforming. PORTFOLIO CONSTRUCTION METHODOLOGY The sector specialists perform a full realm of detailed due-diligence processes to determine which companies represent their best ideas in a respective sector. All new ideas are thoroughly discussed in a team forum, whereby the idea can be vetted by the experienced group of professionals. The sector specialist retains final decision-making authority over their idea, as the firm feels it is important to empower their specialists with decision making authority, an essential component of job satisfaction. Portfolio construction is overseen by a team leader whose directive is to ensure the portfolio's compliance with the firm's investment policy guidelines. All portfolio securities are continuously monitored, and are also reviewed in a full team forum approximately monthly. BUY/SELL DISCIPLINE Securities are sold from the portfolio when their risk/return tradeoff becomes less attractive than other investable candidates, or when their fundamentals deteriorate. The team also employs a "value trap" rule, whereby securities can be forced out of the portfolio if they remain underperformers for a certain period of time. This helps ensure that the portfolios remain fresh with the team's best ideas. TRADING EXECUTION STRATEGY Our trading desk in New York handles all trading. Buy and sell orders are determined by portfolio managers and are given over to the trading desk by telephone or in person. Once received by the desk, orders are entered into a sophisticated paperless trading and blotter system that resides on the trading desk. The software enables the traders to know precisely at any point during the trading day the status of all orders and how the execution of that order compares with the stock's action in the market. The software also provides the proper SEC-mandated regulatory compliance for tracking orders, as well as recording broker interaction with an order. The trading desk is in constant contact with portfolio managers to keep them up-to-date with an order's progress and changing market conditions. At the end of each trading day portfolio managers receive a report compiling firm wide trading activity. The report allows the portfolio manager to review an order's status as well as the execution price. The trading desk also circulates weekly reports summarizing outstanding orders, and monthly commission reports detailing business done with various brokerage firms are provided to ensure that commission targets are met. ADDITIONAL COMMENTS DGHM AIICap Value is an actively managed, diversified portfolio of U.S. based value companies spanning all cap ranges. A all cap equity approach to stocks with market capitalizations over $1 billion allows our disciplined style of investing to take advantage of market opportunities wherever they may occur across the capitalization spectrum. By focusing on stocks with capitalizations above $1 billion, we obtain the necessary liquidity to deploy our assets without incurring the higher trading costs associated with investing in stocks under $1 billion. Our strict adherence to this discipline has currently led to us to be heavily invested in mid-sized companies, as this is where we find the best opportunities today. //~~ Page 22 ~'~h4~= .. City of Winter Springs General Employees' Moody Aldrich Partners, LLC December 31, 2008 Focused Value -Active eASE Profile: Product Narratives INVESTMENT STRATEGY Seeks capital apprciation using bottom-up, fundamental research and aMulti-Dimensional approach to value. This strategy invests in sound businesses that are undervalued relative to earnings, cash flows, assets, and future prospects. Investments with strong return potential are pursued across the capitalization spectrum. This separate account strategy is designed for institutions and individuals that want high return potential from a concentrated portfolio of actively managed stocks. SCREENING PROCESS Our initial universe begins with the value stocks of the Russell 3000 Index. The first step in generating investment ideas is a proprietary quantitative screen, performed monthly, that reduces our field of choice to 150 stocks by highlighting companies with attractive value characteristics. The screen identifies potential attractiveness by ranking and weighting the following factors on a percentile basis: price/value, quality rating, growth persistence rating, projected growth rate, earnings momentum percentile, price momentum percentile, value/momentum percentile, current return on assets, normalized return on equity (ROE). Surviving stocks tend to have the following characteristics: undervalued, based on a dividend discount model, low normalized P/E, high ROE, reasonable quality and stability, growth persistence, some positive earnings and price momentum. Next, a preliminary valuation review based on consensus earnings and growth rates is performed. This step involves a discounted cash flow estimation of intrinsic value as well as relative measures such as P/B, P/E and yields. We then begin more extensive fundamental research concentrating first on a qualitative assessment of the business and company strategy. Through extensive contact with management, company reports and independent research we try to understand the drivers of value, where they are in their business cycle, capital allocation plans, and competitive advantages. The next step is an assessment of the financial trends (margins, asset and inventory turns, revenues, etc.), capital allocation pattern, earnings quality and the manageability of debt. Our trend analysis focuses in on the factors management can influence to boost return on invested capital. We want evidence that supports the stated business strategy. The next step is judgment about the future prospects of a business, and catalysts that we believe must happen for our return expectation to be achieved. Catalysts can include new products, new management, a strategy shift, better utilization of working capital, lower cost of capital, better cost controls, etc. These improvements tend to manifest themselves in corresponding improvements in cash flow, capital efficiency, returns on invested capital and equity, margins and revenues: the end result should be a higher stock price. The final step is a refinement of valuation utilizing amulti-dimensional approach. We value each company as if buying the whole business using a discounted cash flow (economic value added -EVA) analysis. We also look at valuation measures such as P/B, P/E, P/S and various cash flow yields. Relative valuation measures are compared to industry peer groups and adjusted for cyclical and seasonal factors. The end result is a reasonable range of fair value, not a precise number. PORTFOLIO CONSTRUCTION METHODOLOGY Flexibility is a priority with this strategy that is free to go where the values are. Provides exposure to small, medium, and large companies and reasonable diversification across sectors. Investments are concentrated in the firm's best ideas. Investors can expect to be fully invested at all times in 20 to 30 stocks, up to 50% in the top 10 holdings, 10% maximum in any one stock. Along-term investment horizon leads to low turnover. Portfolios are invested quickly into a model portfolio and hold the same stocks in the same weights to keep dispersion among accounts to a minimum. Client directed exclusions are considered prior to purchase. BUY/SELL DISCIPLINE The buy discipline employed by Moody Aldrich Partners (MAP) seeks companies with some, if not all, of the following characteristics: 1. Distinct undervaluation, including (but not limited to) absolute and relative measures of earnings, cash flow, assets, and book value. 2. Future prospects and durable competitive advantage. 3. Financial statement analysis, including catalysts to improve operating results. 4. Trends of cash flow and returns on invested capital versus cost of capital. 5. Financial strength to execute business strategy 6. Timeliness Moody Aldrich's sell discipline is twofold: 1) Stocks are sold based on qualitative judgments derived from the investment team's fundamental research and tied to the investment thesis for each holding. Signals include an erosion of the business and/or its balance sheet. The team monitors key indicators continually and eliminates companies when catalysts expected to unlock value do not materialize or if the investment case breaks down. Occasionally, when internal research uncovers a promising new idea, the team will sell a more fully valued holding to fund the purchase. 2) Also, earnings estimate momentum (EEM) and value provide a very effective unemotional sell discipline. Essentially, as fair value is approached, MAP becomes more demanding of earnings estimate momentum. As a stock becomes fairly valued, if its EEM is still strong, MAP will sell a portion of the holding, retaining the rest. TRADING EXECUTION STRATEGY MAP has a responsibility to ensure that customers receive best execution on orders placed in their accounts. In seeking to achieve best execution, MAP will consider the full range and quality of a broker's services including commission rate, financial responsibility, execution capabilities, and responsiveness. ~~ Page 23 ~`~~~ " City of Winter Springs General Employees' MAP is committed to achieving best execution with respect to clients' securities transactions. MAP does not currently use commissions to obtain regularly invoiced research services. ADDITIONAL COMMENTS //~~ Page 24 ~'~h4~= .. City of Winter Springs General Employees' Zephyr StyIeADVISOR: The Bogdahn Group Return Compounded rate of return for the period. Standard Deviation A statistical measure of the range of a portfolio's performance, the variability of a return around its average return over a specified time period. Sharpe Ratio Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is the absolute rate of return per unit of risk. The higher the value, the better the product's historical risk-adjusted performance. Alpha A measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta. It is a measure of the portfolio's historical performance not explained by movements of the market, or a portfolio's non- systematic return. 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 systematic risk. Treynor Ratio Similar to Sharpe ratio, but focuses on beta rather than excess risk (standard deviation). Represents the excess rate of return over the risk free rate divided by the beta. The result is the absolute rate of return per unit of risk. The higher the value, the better the product's historical risk-adjusted performance. Information Ratio Measured by dividing the excess return by the tracking error. The higher the Information Ratio, the more value-added contribution by the manager. Tracking Error A measure of the standard deviation of a portfolio's performance relative to the performance of the benchmark index. Excess Return Arithmetic difference between the managers return and the index return over a specified time period. Up Market Capture The ratio of average portfolio return over the benchmark during periods of positive benchmark return. Higher values indicate better product performance. Down Market Capture The ratio of average portfolio return over the benchmark during periods of negative benchmark return. Lower values indicate better product performance. Batting Average The batting average of the manager vs. a benchmark is the ratio between the number of periods where the manager outperforms the benchmark and the total number of periods. Downside Risk A measure similar to standard deviation, but focuses only on the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. The higher the factor, the riskier the product. R-Squared The percentage of a portfolio's performance explained by the behavior of the appropriate benchmark. High R-Square means a higher correlation of the portfolio's performance to the appropriate benchmark. Created with Zephyr StyIeADVISOR. Manager returns supplied by: eVestment Alliance '~~ Page 25 ~~_