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Home My WebLink About2009 04 28 Regular 600 Defined Benefit Plan & Trust for Employees of the City of Winter Springs 1st Quarter 2009Date: Apri128, 2009 ATTACHED DOCUMENT CALLED `DEFINED BENEFIT PLAN & TRUST FOR EMPLOYEES OF THE CITY OF WINTER SPRINGS 1ST QUARTER 2009' WAS DISTRIBUTED TO THE BOARD MEMBERS UNDER REGULAR 600. 1, an & Trust for Employees of The City of Winter Springs ~, 1st Quarter 2009 s THe ~"1~ BOGIIAHN ~~ GROUP 1X~ W W. B O G D A H N G RO tl P. C O M simplifying your investment and fiduciary decisions Investment Market Summary Playing the Waiting Game... No Magic Bullet. Although the economy appeared to unravel at an incredibly rapid pace by any historical standard over the last nine months, the multiple layers of credit expansion and financial engineering that led to the current recessionary environment simply do not lend themselves to an equally short-term resolution. This lack of a "quick fix" to the economy's woes is difficult information for market participants, which often react as poorly to future uncertainty as they do to the actual realization of bad news, to effectively digest. However, it is also important to remember that the economy and the market are not on the same clock. The market represents a classic leading economic indicator, and if history is any guide, the market will recover even as headline economic data, such as unemployment (currently 8.5%), continues to deteriorate. While corporate earnings will certainly represent a significant part of the market's ultimate recovery, the first critical component must be some return of investor confidence in the financial system and equity investments as an essential tool for long-term portfolio growth. After ending 2008 with a positive month, investors were hopeful that the first quarter of 2009 would represent the start of the market's recovery. Unfortunately, the market spent much of the first quarter adding to the losses sustained during the last quarter of 2008. This downward spiral, which thankfully received a large dose of late March relief, shook the resolve of many long-term investors. The broad market Russell 3000 Index posted a return of -10.8% for the quarter. While two of the ten economic sectors of the Russell 3000 Index returned worse than -20% (financials and industrials) and three other sectors posted returns of less than -10% (energy, consumer staples and utilities), unlike the 4th quarter, there was a pocket of positive performance. The information technology sector, which was the core index's most heavily weighted sector (18.5%), managed a return of +3.5% for quarter. In the large cap space, the S&P 500 and Russell 1000 Index posted returns of -11.0% and -10.5% respectively. Further down the capitalization spectrum, the Russell MidCap Index returned -9.0% for the quarter and the small cap Russell 2000 Index returned adisappointing -15.0%. Due to the relative strength and weight of the information technology sector in the indices, growth style benchmarks outpaced their value counterparts by a wide margin at every capitalization range. The broad market Russell 3000 Value Index fell by -17.0% while the Russell 3000 Growth Index returned a much more mild -4.5%. Large cap issues, as measured by Russell 1000 Index, returned -16.8% for value vs. -4.1% for growth. The Russell MidCap Value Index returned -14.7% vs. -3.4% for the Russell MidCap Growth Index. In the narrowest spread of the quarter, the Russell 2000 Value Index returned -19.6%, which fell short of the Russell 2000 Growth Index return of -9.7% by a margin of 9.9%. First Quarter 200' It was a tale of two markets between the performance of developed and emerging market indices during the quarter. The developed markets as measured by the MSCI-EAFE Index, declined in both U.S. dollars (-13.9/°) and local currency (-10.0%) for the quarter. Within the 21 country index, Norway, which was down more than 40% in the 4th quarter of 2008, posted the index's only positive country performance with a U.S. dollar return of +3.3%. The major countries of the index (Japan, United Kingdom, France, Switzerland and Germany), which collectively represent more than 60% of the index, were each down in excess of -10% during the quarter. Unlike the wide performance bands of the domestic style indices, the international style distribution was somewhat tighter in the developed markets with the MSCI- EAFE Value Index returning -15.5% vs. the MSCI-EAFE Growth Index return of -12.3%. After declining more than 50% in 2008, the MSCI Emerging Market Index returned +1.0% in U.S. dollars and +4.2% in local currency for the quarter. A large number of the government's broad-based initiatives to bring stability and return liquidity to the fixed income markets were fleshed out during the quarter. The structure and size of these programs continues to evolve on a daily basis and their ultimate success will likely be difficult to measure in the near-term. However, it is also clear that the Fed and Treasury remain on the offensive, as they vocally assure the market's participants that they will do what is necessary to ensure stability and liquidity to the financial markets. The Barclays Capital U.S. Aggregate Index mild return of +0.1% masked some of the performance disparity within the bond market's government, mortgage and credit sectors. Reversing a massive flight to quality that occurred in the bond market since the outset of the credit crisis, government obligations pulled back during the quarter v~ith the Barclays Government Index returning -1.0% for the quarter. Outside of government issues and aided by prospect of protection through government programs, the Barclays Mortgage Index returned +2.2% for quarter. As a symbol of the fear still present in the credit market, the Barclays Corporate Investment Grade Index posted a return of -1.9%. Despite these investment grade credit losses, many lower quality credit issues were positive. Aided by its higher coupons, the Merrill Lynch High Yield Master II Index returned +5.0% for the quarter. Despite our current economic problems, we have faith in the future the United States and the adaptability of the financial system. As large and unpopular as some programs may be, it is a natural expectation for the government to temporality pick up the slack and attempt to drive economic growth forward as personal consumption and business spending slows. The timing of the market and eventual economic recovery is difficult to pinpoint and as Tom Petty phrased it so eloquently back in 1981, "the waiting is the hardest part". `~ BOGDAHN GROUP Page 2 of 39 The Market Environment Long-Term Major Market Index Performance Period Ended: March 31, 2009 Fifteen Year Annualized Performance ~ twenty Year Annualized Performance MSCIEAFE MSCI Emerg. Mkts. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill z3 id MSCIEAFE MSCI Emerg. Mkts. S8~P 500 Russel 13000 Russel 11000 Russell MidCap Russell 2000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill 8.8 0.0% 2.0% 4.0% (i.0% 8.0% 10.0% 12.0% Thirty Year Annualized Performance 0.0% 2.0% 4.0% 6.0% 8.0% Twenty-Five Year Annualized Performance MSCIEAFE MSCI Emerg. Mkts. MSCIEAFE MSCI Emerg. Mkts. S8P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG S&P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays USAgg. Barclays US Gov. Barclays MBS Fixed Barclays Corp IG 3mos. T-Bill 10.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Source: M5C;1 (;aprtal Markets, Kussell Investments, Barclays (;aprtal & Bogdahn c;onsutting, LL(;. 3mos. T-Bill 10.3 10.2 % 1 10.3 % J 11.6 9.6 % s.s % 5.9 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% ~. BOGDAHN GROUP Page 4 of 39 The Market Environment 4th Quarter & Year-to-Date GICS Sector Performance & (Year-End Sector Weight) Period Ended: March 31, 2009 Russel 13000 Russell 1000 ^QTR Energy (11.8%) v 1-Year Materials (3.7%) Industrials (10.3%) Consumer Disc (9.6%) Consumer Staples (11.5%) Health Care (14.8%) Financials (12.0%) InfoTechnology (18.2%) Telecom Services (3.7%) Utilities (4.4%) 01-Year Materials (5.5%) Industrials (12.0%) Consumer Disc (16.5%) Consumer Staples (6.8%) Health Care (9.9%) Financials (15.8%) Info Technology (14.8%) Telecom Services (2.5%) Utilities (9.2%) -11.2% cos % 3.2 -as.i % ' -zos % rt9.6 % '. b.5 -37.7% -10.3 j -23.2 ~ -7.3% -19.9 -2zo % bs.1 is 3.5 3o.z % b.l % -26.7 -11.4 -2s.7 % -70.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% Rusell MidCap -53.9 -7 b1.0 % 3.2 % I -70.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% Source: Thompson Financial ^QTR Energy (12.5%) 01-Year Materials (3.7%) Industrials (9.9%) Consumer Disc (9.4%) Consumer Staples (12.0%) Health Care (14.7%) Financials (11.3%) InfoTechnology (18.2%) Telecom Services (3.8%) Utilities (4.4%) oQTR Energy(4.2%) v 1-Year Materials (3.7%) Industrials (15.3%) Consumer Disc (12.3%) Consumer Staples (4.1%) Health Care (15.8%) Financials (20.6%) Info Technology (18.3%) Telecom Services (1.3%) Utilities (4.6%) i -11.0 % 39.8 ', -2.0 -46.9% -2o.a % -50.3 -6.6 -36.9 % -10.3 -23.z % -6s •19.4 -z7.2 % b9.9 3.9° -30.0 b.2 -26.2 % ' '-11.4% -31.0 % -70.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% Russel 12000 -70.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% `. BOGDAHN GROUP Page G of 39 25 20 15 10 5 0 -5 9h .~ ag hp 4yh O®~ 004 004 004 00 Source: Ibbotson & Zephyr Associates fog fob %~~ 1h ~~ ~~ ~'~ Ay Ao A~ A~ O°~ 00~ 004 004 O~4 004 004 004 O~` 00c, 000 880 rolling 10-year observations - Stocks outperforms Bonds 736 rolling periods or 84% of the time. -Stocks outperforms Cash 749 rolling periods or 85% of the time. -Bonds outperform Cash 723 rolling periods or 82% of the time. `~ BOGDAHN GROtrn Page 8 of 39 Total Fund Portfolio March 31, 2009 ii; ~ ~ ~ December 31, 2008: $13,620,278 Segments ^ Domestic Equity International Equity ^ Domestic Fixed Income ^ Real Estate ^ Cash Equivalent March 31, 2009: $13,351,507 Market Value Allocation Segments Market Value Allocation 124 350 5 39.3 ^ Domestic Equity 5,299,899 39.7 , , 407 1 353 9.9 ®International Equity 1,277,678 9.6 , , 569 248 5 38.5 ^ Domestic Fixed Income 5,474,476 41.0 , , 042 904 6.6 ^ Real Estate 778,845 5.8 , 764,136 5.6 ^ Cash Equivalent 520,610 3.9 ~~ BOGDAHN GROUP Page 10 of 39 Defined Benefit Plan & Trust for Employees of the City of Winter Springs Asset Allocation As of March 31, 2009 Asset Allocation Domestic Equity Portfolio Snow Capital Mgmt. Equity Lateef Asset Mgmt.Equity International Equity Portfolio Voyageur Asset Mgmt. International Galliard Core Fixed Portfolio Galliard TIPS American Stable Value Fund REIT R&D Account Cash Historical Asset Allocation 0 e 0 ea u 0 Q Domestic 9/08 5,528,248 41.41 2,336,270 17.50 3,191,977 23.91 1,277,678 9.57 1,277,678 9.57 5,532,936 41.44 4,481,961 33.57 1,050,975 7.87 778,845 5.83 233,801 1.75 10/08 International 5,822,074 2,519,390 42.75 18.50 3,302,683 24.25 1,353,407 9.94 1,353,407 9.94 5,296,491 38.89 4,304,428 31.60 992,062 7.28 904,042 6.64 244,265 1.79 7,422,820 47.70 3,423,440 22.00 3,999,380 25.70 1,745,816 11.22 1,745,816 11.22 5,248,864 33.73 4,242,774 27.27 1,006,091 6.47 988.399 6.35 154,683 0.99 11/08 1G/va ,~ v~ .., ~. - ^ Domestic Fixed Income ~ Real Estate ~ Cash Equivalent ~~ BOGDAHN `T~ GROUP Page 12 of 39 Defined Benefit Plan & Trust for Employees of the City of Winter Springs Comparative Performance Trailing Returns Trailing Returns As of March 31, 2009 otal Fund Portfolio(Net) otal Fund Pulic~ lixed-Asset Target Alloc Moderate Funds (MF) Median 'otal Fund Portfolio otal Fund Polio Tar~ei Allornions btal Fund Portfolio(Net) utal Fund Pulic~ fixed-Asset Target Alloc Moderate Funds (MF) Median otal Fund Portfolio otal Fund Police Target Allocations -4.27 (28) -18.98 (59) -27.95 (73) -7.85 (63) -6.1-I t?) -1?.~9 141 -23 26 1291 -x.47 (28) 1.87 -1.39 -4.69 -2.38 -5.12 -18.09 -25.26 -7.08 -4.12 -18.64 -27.44 -7.25 -s.oo -20.24 -27.4x -v.x3 3.88 1.60 0.04 -0.42 -4.27 (28) -18.98 (59) -27.95 (73) -7.85 (63) -6.14 (731 -17.59 (44) -2326 (29) -x.47 (28) 1.87 -1.39 -4.69 -238 -5.12 -18.09 -25.26 -7.08 -4.00 (64) -1.88 (53) 0.02 N/A 11/01/2000 -1.79 1_'81 -(1'9 1'20) -(1.41 N!A _2.21 -1.59 0.43 -3.35 -1.79 N/A -3.35 -1.22 0.70 11/01/2000 -2.8~ -l.lb -0.92 -0.50 -0.06 1.62 -4.00 (64) -1.88 (53) 0.02 N/A 11/01!2000 -1.79 1281 -0.29 1?(1) -U.41 NiA -2.21 -1.59 0.43 -3.35 -1.79 N/A -4.12 -18.64 -27.44 -7.25 -3.35 -R.00 -20.24 -2248 -6.3? -' e; 3.88 ].60 0.04 -042 -~'= ~~ Returns for periods greater than one year are annualized. Returns are expressed as percentages. NCREIF estimated for all time periods ending March 31.2009. Estimate based on preliminary results of ODCE. Total Fund Policy= 50% S&P 500, 15%MSCI EAFE, 30% LB Int. Aggregate. & 5% NCREIF. Total Equity Policy= 80% S&P 500, & 20%MSCI EAFE. Total Fixed Policy= 85% LB Int. Agg, & 15% Tips Page 14 of 39 -1.22 0.70 11/01/2000 -1.16 -(1.9, -0.06 1.62 ~~ BOGDAHN `~ GROUP Defined Benefit Plan & Trust for Employees of the City of Winter Springs Comparative Performance Trailing Returns Trailing Returns As of March 31, 2009 otal Fixed Portfolio 2.68 1.45 -2.07 3.52 ~~lul I~„.i ":~lic~ (1.91 4.i2 3.39 5.91 ~:~r,,...,,,,.., 1.77 -3.07 -5.46 -2.39 3.05 -1.99 -1.94 2.64 5.16 11/01/2000 4.21 5.9-1 -1.57 -0.78 2.64 5.16 11/01/2000 4.2I 5.94 -1.57 -0.78 al Fixed Portfolio 2.68 1.45 -2.07 3.52 ~I Fi~cd P~~lic~ I~argct :111oca1ions 1.66 3.95 2.58 5.91 'erence 1.02 -2.50 -4.65 -2.39 liard Core Fixed Portfolio 2.34 (2) 1.64 (82) -2.02 (86) N/A cla}, Copital Intermediate Aggregate (1.91 (38) -1.52 ((i2) 3.39 (42) 5.R9 14-1) Ference 1.43 -2.88 -5.41 N/A Intermediate Fixed Income (SA+CF) Median 0.69 4.89 2.49 5.71 liard TIPS clay ~ C'upital I!.S. Treason- lni]ation Notes: ]- 'erence TIPS (SA+CF) Median erican Stable Value Fund REIT 1 E;tatc Police Ference Private Real Estate-Open End (SA+CF) Median ierican Stable Value Fund REIT REIF Propcrt~ Indc~ (erence Private Real Estate-Open End (SA+CF) Median 4.16 (80) 0.62 (92) -2.26 (68) 5.89 (l0) 0.43 (95) -2?6 1681 -1.73 0.19 0.00 4.88 1.96 -2.00 -12.86 (29) -19.43 (28) -18.45 (23) 1.71 (Il 3.44 I11 7.11(1 111 -14.57 -22.87 -25.45 -17.04 -27.57 -25.67 -12.86 (29) -19.43 (28) -18.45 (23) -1 ;.86 (32) -21.00 (34) -20.69 132) 1.00 1.57 2.24 -17.04 -27.57 -25.67 N/A 5.80 (43) N/A 5.77 N/A 7.0(1 (I 1 N/A 0.07 N/A L65 (3>) N/A 0.07 3.05 4.99 -1.94 N/A 4.99 (45) N/A 4.83 N/A -1.69 143) N/A 4.63 N/A 7.00 N/A N/A N/A N/A 6.(IU N!A N/A N/A N/A -0.04 N/A 10/01/2007 4.15 X37) 5.83 N'A N/A -5.87 3.92 N/A N/A 5.51 N/A 10/01/2007 4.12 (7 3) 5.50 N!A N/A O.OI 4.19 N/A N/A -11.10 N/A 10/01/2007 7.00 NIA 7.UU N,;~ N/A -18.10 N/A N/A N/A -11.10 N/A 10/01/2007 7.84 NiA -11.57 N%A N/A 0.47 N/A N/A Returns for periods greater than one yeaz are annualized. Returns aze expressed as percentages. NCREIF estimated for all time periods ending March 31, 2009. ~~ -~lg Estimate based on preliminary results of ODCE. Total Fund Policy= 50% S&P 500, 15%MSCI SAFE, 30% LB Int. Aggregate. & 5% NCREIF. Total Equity BOGDAHN Policy= 80% S&P 500, & 20%MSCI EAFE. Total Fixed Policy= 85% LB Int. Agg, & 15% Tips GROUP Page 16 of 39 Defined Benefit Plan & Trust for Employees of the City of Winter Springs Comparative Performance Fiscal Year Returns Trailing Returns As of March 31, 2009 Tutal I~.~~uitc Police Difference -25.61 18.52 10.83 15.40 17.60 -21.98 1t,.44 IZ51 14.3U 15.1-{ -3.63 2.08 -1.68 1.10 2.46 -25.61 18.52 10.83 15.40 17.60 -23.61 18.21 1 L99 14.30 15.14 -2.00 0.31 -1.16 1.10 2.46 -21.66 (54) -21.98 (631 17.58 (36) 16.44 158) 9.29 (74) 10.79 1-191 13.77 (59) (2.25 (811 16.77 (19) 13.87 (601 0.32 1.14 -1.50 1.52 2.90 -21.42 16.61 10.78 14.37 14.28 18.76 -14.70 2-1.64 - 19.94 -5.88 5.24 18.76 -14.70 24.64 -19.94 -5.88 5.24 17.81 (91) 24.40 (44) -14.46 (18) -20.49 (76) -6.59 6.03 24.02 -19.07 otal Equity Portfolio otal [quitr Police Target Allocations 5&P 500 Difference US Core/Large Cap Equity (SA+CF) Median Lateef Asset Mgmt.Equity Russell 1000 Gro~~th Index Difference US Gro~~~th/Large Cap Equity (SA+CF) Median Snow Capital Mgmt. Equity Russell 3000 Value Indez Difference US All Cap Value Equity (SA+CF) Median SAFE Index ~ternational Active Value Equity (SA+CF) Median oyageur Asset Mgmt. International ISCI EAl'F [ndex Value -15.13 (13) N/A N/A N/A N/A N/A N/A -20.88 (501 19.35 (55) 6.04 (571 11.60 (701 7.51 (74) 25.92 (27) -22.51 (76) 5.75 N/A N/A N/A N/A N/A N/A -20.90 19.89 6.70 14.01 10.04 22.40 -19.53 -28.16 (92) N/A N/A N/A N/A N/,~ N/A -22.70 173) 13.7; (64) 14.55 (1tl) 16.78 (581 20.89 (49) 24.89 (711 -15.89 (77) -5.46 N/A N/A N/A N/A N/A N/A -19.77 16.24 10.28 18.70 20.83 28.20 -10.27 -39.55 (100) 23.63 (61) 19.84 (66) 26.83 (51) 22.94 (78) 27.32 (71) -20.13 (99) -30.13 (771 25.38 1-13) 19.bi t681 '_6.32 (5R1 22.53 (791 26.54 (761 -IS?6 189) -9.42 -1.75 0.19 0.51 0.42 0.78 -4.87 -27.34 24.45 20.77 26.92 25.41 29.93 -6.80 -39.55 (100) N/A N/A N/A N/A N/A N/A -30.13 (77) 25.38 (43) 19.65 (681 26.32 (58) 22.52 (79) 26.54 (76) -15,26 (89) -9.42 N/A N/A N/A N/A N/A N/A -27.34 24.45 20.77 26.92 25..11 29.93 -6.80 Returns for periods greater than one yeaz are annualized. Returns aze expressed as percentages. NCREIF estimated for all time periods ending March 31, 2009. Estimate based on preliminary results of ODCE. Total Fund Policy= 50% S&P 500, 15%MSCI EAFE. 30% LB Int. Aggregate. & 5%NCREIF. Total Equity Policy= 80% S&P 500, & 20%MSCI EAFE. Total Fixed Policy= 85% LB Int. Agg, & 15% Tips Page 18 of 39 ~~ BOGDAHN GROUP Winter Springs General Employees Total Fund Portfolio (Net) March 31, 2009 ' 1 1 Market Value Capital Market Value As of 'T'ransfers Contributions Distributions Fees Expenses Income As of 12/31/2008 Apprec./ Deprec. 3/31/2009 Total Fund Portfolio (Net) 13,620 - 481 -167 -21 -2 32 -59] 13,352 • 1 1 I 1 Market Value Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income ;lpprec./ Deprec. As of 9/30/2008 3/31/2009 To[al Fund Portfolio (Net) IS,SGI - 1,109 -336 -57 -5 71 -2.992 13.352 1 1 1 1 1 ~~ 1 10.00 ~ $1G0.0~ 0.00 -10.00 e -- -20.00 c `e ~ -.0.00 -40.00 - -50 00 ~ ~ 1 Oct-2008 Quarter To Mar-2009 ^ To[al Fund Portfolio (Net) -4.27 (28) -18.98 (59) • Total Fund Policy -6.14 (73) -17.59 (44) I 2 3 4 Year Years Years Years -27.95 (73) -15.30 (62) -7.85 (G3) -4.00 (64) -23.26 (29) -12.35 (29) -5.47 (28) -1.79 (28) 5 Years -1.88 (53) -029 (20) $ 145.0 $130.0 $115.0 $ 100.0 $85 0 $70.0 Median -8.12 -18.09 -2516 -14.34 -7.08 -3.35 -1.79 Total Fund Portfolio INet) -Total Fund Policy 1 1 ~ I 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec-2008 Seo-2008 Jun-2008 Mar-200R Dec-2007 Sep-2007 Total Fund Portfolio (Net) _18.37 (73) -6.59 (25) -4,79 (100) -4.35 (32) -2.22 (84) 1.89 (52) Total Fund Policy -12.19 (29) -5.08 (9) -1.90 (77) -4.81 (38) -0.84 (50) 2.35 (33) Mixed-Asset Target Alloc Moderate Funds /,MFI n4edian -13.38 -8.04 -1.05 -5.41 -0.85 1.94 Page 20 of 39 ~~ ~ BOGDAHN `~~ GROUP 12/00 9/02 6/04 3/OG 12/07 3/09 Winter Springs General Employees Domestic Equity Portfolio March 31, 2009 ' ~ ~ ~ Market Value Net Market Value As of Contributons Distributions Fees Ex enses Income Capital 12/31/2008 Transfers p Apprec./ Deprec. As of 3!31/2009 Domestic Equity Portfolio s,R2'- 17R - _ -13 -I 26 -484 S,s28 ' ~ ~ t 1 Market Value Net Market Value As of Contributions Distributions Fees Ex enses lncome Capital 9 /3 012 0 0 8 Transfers P Apprec./ Deprec. As of 3/31/2009 Domestic Equity Portfolio 7,423 378 - - -39 -1 58 -2,290 5,528 Peer Group Analysis - US Core/Large Cap Equity (SA+CF) ]s.oo o.oo -ls.oo 0 E -30.00 C -45.00 -60.00 ~~ ~~ Cumulative Performance $lao.o $]zo.o $100.0 1 Oct-2008 1 2 3 4 Quarter To Year Years Years Years Mar-2009 ^ Domestic Equity Portfolio -7.99 (22) -29.88 (54) -3241 (58) -22.34 (44) -12.81 (57) -7.43 (77) ~ SRP s00 -11.01 (68) -30.64 (72) -38.09 (72) -23.34 (64) -13.06 (6s) -7.43 (77) 5 $RO 0 Years -4.27 (60) -4.76 (82) $60.0 12/00 9/02 6/04 3/06 12/07 3/09 Median -10.49 t t ~ -29.78 -37.07 -22.77 -12.51 -6.63 -3.79 ~Do~resticEquityPortfolio -~---5&PS00 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec-2008 Se -2008 .Iun-2008 Afar-2008 Dec-2007 Se -2007 Domestic Equity Portfolio -23.80 (86) -4.69 (8) -6.34 (99) -9.30 (40) -3.24 (99) 2,bg (2g) S&P 500 -2].94 (59) -8.37 (39) -2J3 (82) -9.44 (47) -3.33 (99) 2.03 (47) US Core/Large Cap Equity (SA+CF) Median -2L74 -9.01 -1 19 . -9.47 1.98 1.98 Page 22 of 39 ~~ BOGDAHN l ~ ~ GROUP Winter Springs General Employees Lateef Asset Mgmt.Equity March 31, 2009 Market Value As of Net Ca rtal Market Value Contributions Dis[ribufions Fees As of 12/31/2008 Transfers Expenses lncome Apprec.p/Deprec. 3/31 /2009 ateef Asset Mgnrt.Equity 3,303 89 - 8 - 10 -201 4 192 Market Value As of Net Capital Market Value Transfers Contributions Distributions Fees Expenses Income As of 9/30/2008 Apprec./ Deprcc. 3/31/2009 Lateef Asset Memt Equity 3999 189 - - -28 -I 24 991 4 192 Peer Group Analysis - lJS Growth/Large Cap Equity (SA+CF) ls.oa o.oo -15.00 c `w -30.00 C -4s.00 -60.00 ~ ^ Lateef Asset M~mt.Equih • Russel] 1000 Growth Index 1 Oct-2008 1 2 3 Quarter To Year Years Years Mar-2009 -5.85 (63) -24.05 (22) -29.93 (12) N/A N/A -4.12 (41) -25.97 (47) -34.28 (49) -19.24 (55) -11.28 (s0) ~~ ~~ 4 ,5 Years Years N/A N/A -5.72 (60) -4.38 (74) Cumulative Performance $100.0 $90.0 $80.0 $70 0 $60.0 $50.0 9/07 3/08 9/OR 3/09 Median -4.81 -26.41 -34.49 -19.06 -11.29 -5.43 -3.41 ~ LateefAsset Mgmt.Equity --~-•- Russell 1000 Growth htdex 1 Quarter Ending 1 Quarter Endin 1 Quarter E 1 Quarter 1 Quarter 1 Quarter Dec-200R Se -20 8 nding .)un-2008 Ending Mar-2008 Ending Ending Lateef AssetMgmt.Equity -19.33 (9) -0 50 (4) 7 Dec-2007 Se -2007 Russell 1000 Growth Index -22.79 (SS) . -12 33 (47) _ .28 (99) ] -9.70 (35) 1.87 23 ( ) N/A US GrowtldLarge Cap Equity (SA+CF) Median -22.s1 . -12 s1 .25 (s5) -L0.18 (41) -0.77 (58) 4.21 (66) . 1.51 -10.71 -0.20 s.21 Page 24 of 39 l~~ BOGDAHN GROUP Winter Springs General Employees International Equity Portfolio March 31, 2009 ' ~ t t 1 Market Value Market Value As of Net Contribufions Distributons Fees Expenses Income Capital As of 12/31/2008 Transfers Apprec./ Deprec. 3/31/2009 Intemational Equity Portfolio 1,353 48 8 _ _3 _ - -129 1 27g .. t t t 1, Market \'aluc Capital Market Value As of Transfers Contribufions Distributions Fees Expenses Income A rec./ De rec. As of 9/30/2008 PP P 3/31/2009 Intemational Equity Portfolio 1.746 85 36 - -8 - - -582 IZ78 t t t $200.0 15.00 0.00 -15.00 S 150.0 e -30.00 ii e ~ -45.00 ~ ^ -60.00 S 100.0 -75 00 t ~ ~ i ~ 1 Oct-2008 I 2 3 4 5 Quarter To Year Years fears Years fears Mar-2009 ^ Intemational Equity Portfolio -9.63 (16) -33.13 (84) -54.91 (99) -34.37 (98) -19.54 (98) -]0.01 (99) -5.39 (100) • MSCI EAFE Index -13.85 (55) -30.99 (70) -46.20 (76) -27.49 (74) -14.07 (75) -5.64 (76) -1.75 (7G) $50 0 Median -13.1 I -29.01 -43.00 -25.44 -12.60 -3.87 -0.25 ~ Intemational Equity Portfolio ---~ MSCI EAFE Index t t ' t 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec-2008 Sep-2008 Jun-2008 Mar-2008 Dec-2007 Sep-2007 Internafional Equity Portfolio -26.00 (99) -24.28 (96) -10.94 (100) -0.22 (2) -10.17 (100) -0.26 (83) ndSCl EAFE Index -19.90 (57) -20.50 (82) -1.93 (39) -8.82 (66) -1.71 (52) 2.23 (29) Intemational Active Value Equity (SA+CF) Median -19.34 -17.20 -2.64 -8.13 -1.53 1.24 Page 26 of 39 ~~_ BOGDAHN GROUP l2/00 9/02 6/04 3/OG 12/07 3/09 Winter Springs General Employees Voyageur Asset Mgmt. International March 31, 2009 ~' t t ~ ?•(arket Value Net Market Value As of Transfers Contributions Distributions Fecs Expenses Income Capital As of 12/31/2008 Apprec./ Deprec. 3/31/2009 Voyageur.Asset Mgmt. International 1.353 4R 8 _ -q _ _ _129 l X78 ' t t t 1 Market Value Net Market Value As of Transfers Contributions Distributions Fees Expenses Income .~pprec.ntDeprec. As of 9/30/2008 3/31/2009 Voyageur Asset Mgmt. International 1,746 85 36 - -8 - - _582 1278 t t t t Is.oo o.oo -IS.oo ~ L~ -3000 i 0 `~ -4s.oo ^ -ro.oo - -75.00 ~ ~ ~ ~ i i i 1 Oct-2008 1 2 3 4 5 Quarter To Year Years Years Years Years Mar-2009 ^ Voyageur Asset Mgmt. International -9.G3 (16) -33.13 (84) -54.91 (99) N/A N/A N/A N/A • MSCI SAFE Index -13.85 (55) -30.99 (70) -46.20 ('76) -27.49 (74) -14.07 (75) -5.64 (7G) -1.75 (76) Cumulative Performance $100,0 $85.0 $70.0 $55.0 $40.0 $25.0 Vo}'ageur Asset Mgntl. International Median -13.11 -29.01 -41.00 -25.44 -12.60 -3.87 -0.25 --MSCI EAFE Index t t. ' t 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec-2008 Sep-2008 Jun-2008 Mar-2008 Dec-2007 Sep-2007 ~ oyageur Asset Mgmt.lnternational -26.00 (99) -24.28 (96) -10.94 (100) -0.22 (2) -10.17 (100) N/A ndSC[ EAFE index -19.90 (57) -20.50 (82) -1.93 (39) -8.82 (66) -1.71 (52) 2.23 (29) International Active Value Equity (SA+CF) Median -19.34 -17.20 -2.64 -8.13 -L53 1.24 Page 28 of 39 THE ~_ ~ BOGDAHN GROUP 9/07 3/08 9/08 3/09 Winter Springs General Employees Galliard Core Fixed Portfolio March 31, 2009 t t ~ Market Value Net Market Value As of Transfers Contributions Distributions Fees Expenses Income Capital As of 12/31/2008 Apprec./ Deprec. 3/31/2009 Galliard Core Fixed Portfolio 4,304 R2 - _9 _ _I _ 102 4,482 ' t t t 1 . Market Value Net Market Value As of Transfers Contributions Distributions Fees Expenses Income Capital As of 9/30/2008 Apprec./ Deprec. 3/312009 Galliard Core Fixed Portfolio 4,243 I74 - -5 -3 -I - 74 4,482 ~ t t t l 0.00 ~- $1 10.0 5.00 - 0 ^ ~ $1 5.0 0.00 c 0 C ~ ^ -5.00 - $100.0 -10.00 1 Oct-2008 1 2 3 4 5 Quarter To Year Years Years fears Years Mar-2009 $108.9 ~/ ^ Galliard Core Fised Portfolio 2.34 (2) L64 (82) -2.02 (86) N!A N/A N/A N/A $99 p • Barclays Capital Intermediate Aggregate 0.91 (38) 4.52 (62) 3.39 (42) 5.59 (47) 5.89 (44) 4.99 (45) 4.15 (37) , 9/07 3/08 9/08 3/09 Median 0.69 4.89 2.49 5.47 i 71 4.83 3.92 -Galliard Core Fixed Portblio ---Barclays Capital Intermediate Aggregate t t ' t 1 1 1 1 I 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec-2008 Sep-2008 ./un-2008 Mar-2008 Dec-2007 Sen-2007 Galliard Core Frxed Portfolio -0.68 (90) -3.02 (84) -0.G1 (21) 0.20 (96) 1.81 (94) N/p Barclays Capital Intermediate Aggregate 3.58 (59) -0.13 (20) -0.96 (42) 2.35 (58) 2.89 (45) 2.76 (51) US Intermediate Fixed Income (SA+CF) Median 4.IG -1.18 -1.04 2.60 2.82 2 77 Page 30 of 39 ~~ ~ BOGDAHN GROUP Winter Springs General Employees American Stable Value Fund REIT March 31, 2009 ' t t 1 Vfarket Value Net Market Value As of Transfers Contributions Distributions Fees Expenses Income Capital As of 12/31/2008 Apprec./ Deprec. 3/31/2009 American Stable Value Fund REIT 904 - _ _7 -2 116 779 ~ t t t 1 Market Value Market Value As of Net Contributions Distributions Fees Ez enses Income Capital 9/30/2008 Transfers p Apprec.l Deprec. .4s of 3/31/2009 American Stable Value Fund REIT 988 - - -l4 -5 - - -191 779 t t I t• t Is oo $noo~ ooo-{ ~_ ^ ~, -15.00 - e 0 ! ~ -30.00 -I I -45.00 1 Oct-2008 Quarter To Mar-2009 ^ American Stable Value Fund REIT -12.86 (29) -19.43 (28) • NCREIF Property Index -]3.86 (32) -21.00 (34) 1 2 3 Year Years Years • ~ $ t os.o $100.0 $95.0 $90.0 4 5 $85 0 Years Years -18.45 (23) N/A N/A N/A N/A $80.0 -20.69 (32) -5.09 (30) 1.65 (35) 6.00 (N/A) 7.84 (N/A) Mediarr -17.04 r t. t -27.57 -25.67 -7.21 0.07 N/A N/A ArrKrican Stable Value Fund REIT ----NCREIFPropertylndex 1 Quarter Ending Dec-2008 1 Quarter Ending Se 2008 1 Quarter Ending .lun-2008 1 1 Quarter Quarter Ending Ending Mar-2008 Dec-2007 1 Quarter Ending Se -2007 American Stable 4'alue Fund REIT NCREIF Property Index US Private Real Estate-Open End (SA+CF) Median -7.53 (23) -8.29 (2G) -9.99 -0.30 (4R) -0.17 (41) -0.30 1.52 (21) 0.56 (GO) 0.74 1.19 (59) 1.SR (71) 1.60 (32) 3.21 (11) 1.24 1.94 N/A 3.56 (52) 3.67 Page 32 of 39 ~~ ~ BOGDAHN `~, GROUP 9/07 3/08 9/08 3/09 Defined Benefit Plan & Trust for Employees of the City of Winter Springs Benchmark History Target Allocations As of March 31, 2009 Benchmark Policy Total Equity Asset Allocations Effective Date: Nov-2000 S&P 500 Index 90.00 MSCI EAFE 10.00 Effective Date: Oct-2003 S&P 500 Index 85.00 MSCI EAFE I x.00 Effective Date: Sep-2006 S&P 500 Index 80.00 MSCI EAFE 20.00 Benchmark Policy Total Fixed Tareet Allocations Effective Date: Nov-2000 Barclays Capital Aggregate 100.00 Effective Date: Sep-2006 Barclays Capital Intermediate Aggregate 100.00 Effective Date: Oct-2007 Barclays Capital Intermediate Aggregate 85.00 Barclays Capital U.S. Treasury Inflation Notes: 1-10 Year 15.00 Page 34 of 39 BOGDAHN GROUP City of Winter Springs General Employee Retirement System Compliance Checklist as of March 31, 2009 ~. .~~. The Total Plan return equaled or exceeded the 8% actuarial earnings assumption over the trailing three and five year periods. / The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. / The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. / The Total Plan standard deviation was equal to or less than 120% of the total plan benchmark over the trailing three and five year periods. / Total equity returns meet or exceed the benchmark over the trailing three and five year periods. Total equity returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. / Total equity returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. / Total foreign equity was less than 20% of the total plan assets at cost. / 't ~ •~~- •~~ • Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. / Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. / The quality of the fixed portfolio was investment grade or better. / The effective duration of the fixed income portfolio was within +/_ 125% of the policy benchmark. / Manager outperformed the index over the trailing three and five year periods. / / / / / Manager ranked within the top 50th percentile over trailing three and five year periods. / / / / / Manager outperformed the index over the trailing three and five year periods. / / / / / Standard deviation <= 150% of the index over the trailing three and five year periods. / / / / /