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HomeMy WebLinkAboutRegular 602 Presentation For Quarter Ending April 2010Date: May 26, 2010 The attached Report was provided by Mr. David West, Bogdahn Consulting, LLC to the Winter Springs Board of Trustees and was discussed during Regular Agenda Item "602" at the May 26, 2010 rescheduled Regular Meeting. I LI Winter Springs General Employees General Plan and Trust 1 st Quarter 2010 --A THE BOGDAHN GROUP W W W, $ Q G D A H N {; R O U R C O M simplifying your investment raid fiduciary decisions 1St Quarter 2010 Market Environment BOGDAHN GROUP The Market Environment Major Market Index Performance Period Ended: March 31, 2009 Portfolio Attribution (Reference pages 19, 20, of the Bogdahn Group March 2010 Report) ■ The Plan results were very strong with the investment program capturing the full benefit of the broad market recovery. Fiscal year -to -date net results (7.74 %) put the Plan well within range of the actuarial required target rate of return. Powered by another strong quarter (4.22% net), year over year results for periods ended March have the Plan earning (33.89 %) net of manager fees. Attribution shows numerous positive active management elements affecting results. Overall equity performance exceeded policy for the quarter (5.51% vs. 4.79 %), fiscal year to date (12.51% vs. 12.19 %), and year over year (58.16% vs. 47.54 %). Active fixed income management continues to capture incremental value out performing bench marks for the quarter (2.6% vs. 1.81%), fiscal year to date (3.67% vs. 2.34 %), and year over year (12.95% vs. 7.4 %). Program results compared to peers continue to improve significantly putting the Plan in the top (20th), (35th), and (43rd) percentiles for the quarter, fiscal year to date, and year over year. ■ The most notable active manager contributions came from RBC where performance has exceeded already outsized benchmark returns impressively. Results for the quarter (5.07% vs. 0.94 %), and fiscal year to date (6.69% vs. 3.8 %) have out performed peers putting the fund in the top (5th) and (18th) percentiles respectively. Year over year RBC has gained (78.49 %) exceeding the foreign equity benchmark by (23.29 %). ■ A sampling of peer data suggests that fund rankings have been heavily impacted by bond manager performance. Many active managers distinguished themselves capturing "once in a career opportunities" for value added management. Galliard performed admirably exceeding the market benchmark by (7.05 %) which provided a significant contribution to Plan assets (14.45 %) year over year. ■ Plan allocation remains on target policy with monthly investment of net Plan contributions providing for full market exposure. What helped? • Active management for the quarter from RBC (5.07% vs. 0.94 %). • Active management from Galliard Core Fixed Income (3.01 %vs. 1.81 %). • Marginal active management contribution from Lateef (5.33% vs. 4.65 %). What hurt? • Real Estate continues to be a drag on absolute returns (- 0.67 %), though the pace of decline and commensurate portfolio impact has moderated significantly • Recommendations: -Move to full target Real Estate allocation (10% from 5 %) through diversified manager/ product mandate assignment MIL BDGDAHN GROUP The Market Environment Major Market Index Performance Period Ended: March 31, 2010 ■ Despite getting off to a rough start in January, the domestic equity markets posted strong results for the 1St quarter of 2010. January's weakness was largely a result of the domestic political rhetoric associated with discussions surrounding increased banking regulations as well as the potential geopolitical consequences of Greece's troubles on the global economy. As the quarter wore on investors began to view the domestic economy's recovery in a more positive light, which drove market returns higher. The domestic equity benchmark performance for both the quarter and the trailing one -year period was led by the Russell 2000 ( +8.7 %) and Russell MidCap ( +8.9 %) indices. ■ International markets were also positive for the 1St quarter of 2010. However, due to the strength of the U.S. dollar (USD), the USD returns of each of the foreign benchmarks trailed the respective local currency results for the quarter. In the trailing one -year period, the international markets showed substantial strength, particularly emerging markets, which returned 81.6% for the year. ■ The Barclays Aggregate index posted a solid return of +1.8% for the quarter. Unlike the prior several quarters, which were dominated by the performance of credit issues, the quarter's relatively stable rate environment meant that each segment of the bond index was a positive contributor to broad benchmark's total return. However, the outperformance of credit issues is very evident in the one -year results where the Barclays Aggregate index performance of +7.7% was dominated by the Corporate Investment Grade index return of +23.8% and held back by the -0.1 % return of the Government index. Quarter Performance MSCI ACWxUS t7% MSCI EAFE o.9% MSCI Emerg Mkts 2.5% S &P 500 5.4% Russell 3000 5.9% Russell 1000 5.7% Russell MidCap 8.7% Russell 2000 8.9% Barclays US Agg Barclays US Govt Barclays MBS Barclays Corp IG 3 -Month T -Bill o 1.8% 1.1 ] 1.5% 1 2.3% 0.0% MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts S &P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg Barclays US Govt Barclays MBS Barclays Corp IG 3 -Month T -Bill 2.0% 4.0% 6.0% 8.0% 10.0% One Year Performance 7 F1E Source: Barclays Capital, MSCI Capital Markets, Russell Investments 3 BoGD" HN " GROUP -10.0% 10.0% 30.0% 50.0% 70.0% 90.0% The Market Environment Domestic Equity Style Index Performance Period Ended: March 31, 2010 Quarter Performance ■ The 1St quarter's value outperformance represents a mirror image of the 4th quarter's results for growth. While last quarter's growth outperformance was led by strength in information technology and weakness in financials, this quarter's value outperformance was a result of strength in financials and relative weakness in information technology. This quarter's outperformance by value indices is evident across the entire capitalization spectrum where the financial sector represents a weight of more than 20% of each of the Russell value indices. ■ The absolute performance differential between value and growth index results for the 1St quarter were relatively narrow with the 240 basis point return differential between small cap style indices represented the widest performance band. While the return disparity between the various style -based benchmarks is broader over the one -year period, absolute results for all of the equity benchmarks were strong. Much like the 1St quarter of 2010, annual benchmark differentials between growth and value indices were driven by a strong recovery in financial issues over the period. ■ Style -based results over the one -year period were once again heavily impacted by the end -point sensitivity of the four quarter calculation. This sensitivity is quantified by the elimination of the 1St quarter of 2009's performance from the the calculation (Russell 1000: - 10.5 %) and the inclusion of the 1St quarter of 2010's performance (Russell 1000: +5.7 %). 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCapindex MidCap Growth 2000 Value 20001ndex 2000 Growth 3000 Value 30001ndex 3000 Growth 1000 Value 10001ndex 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 20001ndex 2000 Growth 7.0 5.9% 4.9% 6.8% 5.7% 4.6% 9.6% 8.7% 7.7% 10.0 8.9% 7.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% One Year Performance � Source: Russell Investments %% I [A E 4 BOGDAHN " GROUP 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% The Market Environment GICS Sector Performance & (Quarter -End Sector Weight) Period Ended: March 31, 2010 ■ Large cap stock performance was largely positive across the various Global Industry Classification Standard (GICS) sectors for the quarter with the exception of the low- weighted telecommunication services and utilities sectors, which were mildly negative. Sector positioning will most likely play a large role in a portfolio's performance for the quarter, with only four of the index's ten sectors outpacing +5.7% return of the Russell 1000 index. The quarter's performance was led by industrial, consumer discretionary and financial issues, each of which posted returns in excess of +10.0 %. ■ Reversing last quarter's pullback where it represented the weakest sector in the index, the financial sector of the Russell 1000 posted a strong +11.4% return for the quarter. Industrials, which factor significantly in both the value and growth benchmarks ( >10% weight) was the Russell 1000 index's stron est sector for the uarter with a return of g It ■QTR +12.4%. O 1 -Year • For the trailing one -year period, each of the ten GICS sectors Energy (5.0%) posted double -digit performance for the Russell 1000 Index. Materials (4.6%) In fact, five of the ten sectors returned more than 50.0% for Industrials (15.2%) the period. Consumer Disc (15.0 %) • Small cap stock performance was positive across nine of the Consumer Staples (3.1%) ten GICS sectors for the quarter. In fact, with the exception of industrials, which was the strongest sector of the large cap Health Care (14.3%) index, the small cap sector performance exceeded each Financials (20.9%) respective large cap sector result for the quarter. Info Technology (18.0%) • The one -year results for the Russell 2000 index GICS sectors Telecom Services (0.9 %) were also impressive with the materials and consumer Utilities(3.0 %) discretionary sectors posting returns in excess of 100 %. Source: Thompson Financial ■QTR O 1 -Year Energy (10.7 %) Materials (4.0 %) Industrials (10.8 %) Consumer Disc (10.7 %) Consumer Staples (10.7 %) Health Care (12.3 %) Financials (15.6 %) Info Technology (18.7 %) Telecom Services (2.8 %) Utilities (3.6%) Russell 1000 0.8% 32.7% 4.2% 62.1% 12.4% 73.5% 11.3% 73.0% 6.0% 36.4% 4.3% 36.5% 11.4% 78.5% 2.0 59.0% -3.5% 15.7% -3.0% 23.6% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Ru sse112000 3.3 % 83.0% 5.9 % 104.0% 6.0% 58.0% 17.9 % 100.1 7.7 48.7% 8.1 49.3% 11.4% 47.2% 6.5% 727% -2.8% 28.3% 2.5% 24.6% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 7'F1E 5 BOGDAHN " GROUP The Market Environment Quality Rankings* Breakdown by Weight and Quarterly Performance Period Ended March 31, 2010 ■ Within the Russell 1000 index, the performance of each of the quality segments was spread over a 300 basis point range during the 1St quarter. "B" quality rated companies, which make up 6.5% of the index, posted the strongest quality performance for the quarter with a return of +7.5 %. "A-" quality rated companies, which make up a larger 14.0% of the index, posted the quarter's weakest quality performance with a return of +4.5 %. ■ With nearly 30% of the small cap Russell 2000 index being classified as "not rated ", drawing sweeping conclusions from the quality data associated with the small cap index can often be misleading. However, since the +8.2% return by these "non- rated" companies is similar to the +8.8% posted by the index, it is reasonable to draw conclusions for the index based on the 1St quarter's quality data. With the exception of the outlying performance posted by the low- weighted "A-" and "N /A" companies, the spectrum of performance for the various quality ratings of the Russell 2000 index was a narrow 210 basis points. Russell 000 Quality Breakdown A+ 9.7% 5.3% A 11.7% 7.4% A- 14.0% 4.5% B+ 17.7% 5.7% B 6.5% 7.5% B- 27.7% 5.2% C 2.2% 7.1% D 0.0% 0.0% N/A 0.0% 0.0% Not Rated Russell 000 Index 10.5% 100.0% 5.6% Russell 000 Quality Breakdown A+ . . 3.0% QTR Return 9.4% A 4.9% 7.7% A- 0.5% 3.0% B+ 17.2% 9.2% B 20.3% 9.3% B- 11.8% 8.1% C 11.9% 9.8% D 0.2% 9.5% N/A 0.8% 19.8% Not Rated Russell 000 Index 29.4% 100.0% 8.2% Quality Rankings Table Highest I High I Above Average I Average I Below Average I Lower I Lowest I In Reorganization *Standard and Poor's rankings are generated by a computerized system and are based on per -share earnings and dividend records of the most recent 10 years. - October 2005 report Source: Thompson Financial 6 BOGDAHN " GROUP The Market Environment International and Regional Market Index Performance (# Countries) Period Ended March 31, 2010 ■ International developed market performance for the quarter was led by the performance in the Pacific region, which posted a return of +6.3% in U.S. Dollars (USD). Within the Pacific region, Japan was the standout country with a return of +8.3% for quarter in USD. Japan's strong performance was enough to propel it past the United Kingdom as the largest representative country in international benchmarks. Another phenomenon visible in the performance of international developed markets during the quarter is the continued strength of the USD. However, unlike the 4t" quarter where both the Europe and Pacific regions of the index showed weakness against the USD, during the 1St quarter, Europe was the sole source of weakness with a return of +3.6% in local currency vs. -1.7% in USD. ■ Emerging markets continued their solid performance during the 1St quarter with a return of +2.5% in USD. Much like developed markets, USD returns were muted as the result of a strengthening dollar. However, in contrast to the developed markets where Europe represented a drag on the broader benchmarks, Europe's emerging market countries, which posted a USD return of +6.1%, were the primary source of performance in the boarder emerging market benchmark. ■ Despite the strength of the USD over the last two quarters, the one -year results of both the broad and regional benchmarks show the substantial weakness of the USD over the last year. ■ In contrast to the domestic indices which were driven by performance in the industrial, financial and consumer discretionary sectors, the GICS sector attribution of both the EAFE and ACWIxUS benchmarks for the 1St quarter illustrate the largest strength coming from exposure to the information technology sector. Source: MSC/ Capital Markets ■ QTR (USD) oQTR(Local) AC World x US (44) WORLD x US (22) EAFE (21) Europe(16) Pacific (5) Emerging Mkt (22) EM Europe (5) EM Asia (8) EM Latin Amer (7) ■ 1 -Year (USD) ❑ 1 -Year (Local) AC World x US (44) WORLD x US (22) EAFE (21) Europe(16) Pacific (5) Emerging Mkt (22) EM Europe (5) EM Asia (8) EM Latin Amer (7) Quarter Performance -5.0% 0.0% 5.0% 10.0% 15.0% One -Year Performance 61.7% 47.5% 56.8% 44.8% 55.2% 45.4% 5 7.2% 50.51 0 51. /o 6.6 81.6% 58.4% 0 lr 111. % 85.9% 738% 58.5% 97.8% 60.2% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% �+"� I [AE BOGDAHN " GROUP 1.7 % 3.6 % 1.4 % 4.2 0.9 o 4.4 % -1.7 3.6 % 6.3% 6.0% 2.5 % 6.2% 6.1% 9.7% 1.4 % 6.1% 1.7 o 5.3% -5.0% 0.0% 5.0% 10.0% 15.0% One -Year Performance 61.7% 47.5% 56.8% 44.8% 55.2% 45.4% 5 7.2% 50.51 0 51. /o 6.6 81.6% 58.4% 0 lr 111. % 85.9% 738% 58.5% 97.8% 60.2% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% �+"� I [AE BOGDAHN " GROUP The Market Environment U.S. Dollar International Index Attribution & Country Detail Period Ended March 31, 2010 Source: MSCI Capital Markets, & Franklin/Templeton Country Japan mg-rawem. ag e Return 8.3% MSCI-EAFE Energy 8.0% -3.5% 9-Year Return 38.7% Materials 10.5% 2.4% 84.0% Industrials 11.8% 5.8% 63.6% Consumer Discretionary 9.9% 3.1% 54.6% Consumer Staples 10.0% 2.2% 55.2% Health Care 8.1% -1.2% 37.1% Financials 25.3% -0.7% 71.7% Information Technology 5.3% 11.9% 52.1% Telecommunication Services 5.5% -4.3% 32.0% Utilities Total 5.6% 11 1' -4.0% 1 27.4% 90.6% Netherlands 2.6% 1.8% Source: MSCI Capital Markets, & Franklin/Templeton Country Japan mg-rawem. ag e Return 8.3% Energy 10.8% -2.1% 50.7% Materials 12.2% 3.2% 84.7% 7 Industrials 10.2% 5.8% 65.5% Consumer Discretionary 8.6% 3.0% 61.6% Consumer Staples 8.5% 2.4% 58.6% Health Care 6.2% 0.0% 38.7% Financials 25.9% 1.2% 79.8% Information Technology 7.0% 6.5% 64.0% Telecommunication Services 6.0% j -1.9% 35.5% Utilities Total 4.8% 11 1' -2.9% 32.5% Source: MSCI Capital Markets, & Franklin/Templeton Country Japan Ending Weight 22.2% Ending Weight 15.5% Return 8.3% Return 38.0% United Kingdom 21.0% 14.7% -0.6% 59.6% France 10.6% 7.4% -3.9% 52.4% Australia 8.7% 6.0% 4.2% 87.1% Switzerland 7.9% 5.5% 4.4% 55.5% Germany 7.9% 5.5% -2.6% 53.1% Spain 3.9% 2.7% -15.2% 50.6% Italy 3.2% 2.3% -7.3% 49.4% Sweden 2.8% 1.9% 7.7% 90.6% Netherlands 2.6% 1.8% -1.0% 69.3% Hong Kong 2.4% 1.7% 2.4% 64.8% Singapore 1.5% 1.0% -1.3% 88.9% Finland 1.2% 0.9% 12.4% 62.2% Belgium 1.0% 0.7% -1.0% 64.1% Denmark 0.9% 0.7% 10.0% 69.5% Norway 0.7% 0.5% -6.4% 71.0% Greece 0.4% 0.3% -13.2% 24.5% Austria 0.3% 0.2% -1.2% 55.7% Portugal 0.3% 0.2% - 10.3% 37.9% Ireland 0.3% 1 0.2% 1 -0.2% 23.6% New Zealand 0.1% 0.1% -3.7% 50.2% Canada Total De veloped Countries 7.6% 77.3% 6.2% 1.4% 72.9% China 4.0% -1.6% 58.0% Brazil 3.7% -0.1% 103.0% Korea 2.9% 4.0% 79.1% Taiwan 2.4% -3.8% 60.1% India 1.7% 4.9% 115.9% South Africa 1.6% 4.6% 71.8% Russia 1.5% 6.8% 106.5% Mexico 1.0% 7.8% 96.3% Israel 0.7% 10.0% 60.9% Malaysia 0.6% 9.1% 71.1% Indonesia 0.5% 10.0% 147.6% Turkey 0.3% 4.0% 136.4% Thailand 0.3% 13.3% 111.3% Chile 0.3% 0.3% 64.8% Poland 0.3% 4.2% 116.7% Colombia 0.2% 10.4% 126.4% Hungary 0.1% 12.6% 181.0% Peru 0.1% 0.6% 1 62.5% Egypt 0.1% 11.9% 76.5% Philippines 0.1% 5.2% 65.6% Czech Republic 0.1% -0.2% 51.2% Morocco 0.0% 6.7% 11.1% BOGDAHN GROUP The Market Environment Domestic Credit Sector & Broad Market Maturity Performance Period Ended: March 31, 2010 Quarter Performance ■ While several quarters during 2009 were marked by substantial credit compression that benefited lower quality investments, the 1St quarter of 2010 represented a more stable environment. This stability is particularly evident in the narrower 280 basis point performance differential between AAA and <BBB rated debt. This is a substantial change from the last quarter where the return differential between AAA and <BBB rated debt was a much wider 680 basis points. Given the quarter's steady rate environment, the higher coupons associated with lower- quality debt as well as the higher yields offered on longer -term bonds were the primary drivers of total return performance. ■ The results of the bond market summarized in the one -year performance chart show what can only be characterized as an "extreme" performance band between the various bond index segments. The Government bond index, which did not benefit from 2009's credit compression, was at the low end of the performance band with a one -year return of -0.4 %. In contrast, high yield securities, which benefited from both strengthening credit market conditions and higher coupon rates, posted a return of +57.2% for the year. Source: Merrill Lynch Index System aaa AA A BBB <BBB Govt Mort 1 -3yr G /M /C 1 -5yr G /M /C 1 -10yr G /M /C 10 +yrG /M /C aaa AA A BBB <BBB Govt Mort 1 -3yr G /M /C 1 -5yr G /M /C 1 -10yr G /M /C 10 +yrG /M /C 2.0 2.1 ■ 2.4 3.5 4.8 09M 1 1.7% G /M /C =Broad Market (Government + Mortgage + Corporate) 1.2% 1.5% 1.7% 1.9% 0.0% 2.0% One Year Performance 4.0% 6.0% 8.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 1� 7'F1E 9 BOGDAHN " GROUP 7.9 15.7 22.3 32.9 5 .2 -0.4 5.2 L 10.0 -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 1� 7'F1E 9 BOGDAHN " GROUP The Market Environment Market Rate & Yield Curve Comparison Period Ended March 31, 2010 ■ During the quarter, the Fed reiterated that rates will remain low for an extended period of time. While there is no shortage of opinion, many market observers feel that the Fed will not raise rates before the end of the year due to muted growth, low inflationary pressures and high unemployment. While several readings indicate that the domestic economy has largely stabilized, there are fewer indicators of the strong demand or organic growth necessary to drive the economy forward without substantial government stimulus. The current economic weakness is most evident in many small and mid sized companies, which still face tight credit conditions and slow growth. 6.00 5.00 4.00 3.00 2.00 1.00 0.00 2009 -2010 Market Rates Fed Funds Rate -TED Spread -3 -Month Libor - BAA/10yrSpread - 10yrTreasury - 10yrTIPs ■ Although there were a number of economic and geopolitical events during the quarter that could have derailed the recovery in the credit markets, the various indicators reported in the "Market Rates" chart show a relatively stable rate environment during the quarter. ■ In contrast to prior quarters, the Treasury yield curve remained largely unchanged during the 1St quarter. For example, the quarter -end yield on the benchmark 10 -year Treasury (3.84 %) only changed by 1 basis point versus the year -end yield (3.85 %). As a result of this rate stability, the yield curve remains extremely steep with a 2- year /10 -year spread of 282 basis points. 7.00 6.00 5.00 4.00 3.00 rg 2.00 1.00 0.00 Mar -09 Jun -09 Sep -09 Dec -09 Mar -10 Treasury Yield Curve X3/31/2009 X9/30/2009 X12/31/2009 • - 3131/2010 1 mo 3mo 6mo 1 yr 2yr 3yr 5 y 7yr 10yr 20yr 30yr I Hr, Source: Mortgage-X. com , US Department of Treasury & St. Louis Fed 10 BOGDAHN GROUP The Market Environment What a Difference a Year Makes Period Ended: March 31, 2010 1 -Year Return as of 3131109 -46.2% 46.2% -46.9% -38.1% - 38.2% - 38.3% 40.8% [ 37.5% 3.1% :::� 7.0% 8.1% -5.2% - 60.0% - 40.0% - 20.0% 0.0% 20.0% ■ It would be difficult to identify another consecutive two - year period with more diametrically opposed performance that the one -year periods ending 3/31/09 and 3/31/10. Over this period the average performance differential for the international and domestic equity benchmarks was 112.6% and 95.4% respectively. ■ Fixed income, which typically offers a high degree of stability year- over -year, had an average performance spread over the two -year period of 10.2% for the benchmarks shown. This differential was largely due to the 26.0% return differential realized in investment grade debt over these two years. MSCI ACMUS MSCI EAFE MSCI Emerg Mkts S &P 500 Russell 3000 Russell 1000 Russell MidCap Russell 2000 Barclays US Agg Barclays US Govt Barclays MBS Barclays Corp IG 3 -Month T -Bill 1 -Year Return as of 3131110 - 20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% ■ While it is easy to look in a rearview mirror to see the logic of diversifying a portfolio across several strategies and asset classes, it is important to remember that the greatest investment opportunity often exists when the risk appears to be the greatest. The best lesson for long -term investors to take from the performance disparity of last two -years is do their best not to anticipate or react to short -term market performance but rather to maintain focus on their long -term strategic plans. I Hr, Source: Barclays Capital, MSCI Capital Markets, Russell Investments � 1 BOGDAHN GROUP 61.7% 4.2% 81.6% 49.8% 52.4% 51.6% 67.7% 62.8% 7.7% -0.1% 5.2% 20.8% 0.1% - 20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% ■ While it is easy to look in a rearview mirror to see the logic of diversifying a portfolio across several strategies and asset classes, it is important to remember that the greatest investment opportunity often exists when the risk appears to be the greatest. The best lesson for long -term investors to take from the performance disparity of last two -years is do their best not to anticipate or react to short -term market performance but rather to maintain focus on their long -term strategic plans. I Hr, Source: Barclays Capital, MSCI Capital Markets, Russell Investments � 1 BOGDAHN GROUP Winter Springs General Employees General Plan and Trust March 31, 2010 December 31, 2009 : $18,269,494 March 31, 2010 : $19,273,042 Segments Market Value Allocation Segments Market Value Allocation (S) (%) (S) (%) ■ Domestic Equity 8,323,521 45.6 ■ Domestic Equity 9,589,583 49.8 ❑ International Equity 2,431,014 13.3 ❑ International Equity 2,910,875 15.1 ❑ Fixed Income 6,218,135 34.0 ❑ Fixed Income 5,761,294 29.9 ■ Real Estate 605,618 3.3 ■ Real Estate 595,761 3.1 ■ Cash Equivalent 691,206 3.8 ■ Cash Equivalent 415,529 2.2 12 BOGDAHN GROUP Winter Springs General Employees General Plan and Trust March 31, 2010 December 31, 2009 : $18,269,494 March 31, 2010 : $19,273,042 13 BOGDAHN ` GROUP Market Value Allocation Market Value Allocation ($) ( %) ($) ( %) ■ Dalton, Greiner, Hartman, Maher & Co. 4,968,701 25.8 ■ Galliard Core Fixed Income 5,123,295 28.0 ■ Lateef Asset Mgmt.Equity 4,887,399 25.4 ■ Lateef Asset Mgmt.Equity 4,854,033 26.6 ■ Galliard Core Fixed Income 4,865,111 25.2 ■ Dalton, Greiner, Hartman, Maher & Co. 3,971,638 21.7 ■ RBC Global (Voyageur) 2,910,875 15.1 ■ RBC Global (Voyageur) 2,431,014 13.3 ■ Galliard TIPS 916,171 4.8 ■ Galliard TIPS 1,141,913 6.3 ❑ American Stable Value Fund 595,761 3.1 ❑ American Stable Value Fund 605,618 3.3 ❑ Receipt & Disbursement 88,424 0.5 ❑ Receipt & Disbursement 141,982 0.8 ■ Galliard Cash 40,600 0.2 13 BOGDAHN ` GROUP Winter Springs General Employees General Plan and Trust Asset Allocation vs. Target Allocation As of March 31, 2010 A4 —h 41 7n1n Domestic Large Cap Value Equity Domestic Broad Cap Growth Equity Foreign Equity Broad Market Fixed Income TIPS Real Estate Receipt & Disbursement Galliard Cash Allocation Differences .0.8% I0.4% .1% 0.2% -0.2 °( �0.5% .2 °0 -10.0% -8.0% -4.0% 0.0% 4.0% 8.0% 10.0% March 31, 2010 14 BOGDAHN GROUP Market Value Allocation Target Domestic Large Cap Value Equity 4,968,701 25.8 25.0 Domestic Broad Cap Growth Equity 4,887,399 25.4 25.0 Foreign Equity 2,910,875 15.1 15.0 Broad Market Fixed Income 4,865,111 25.2 25.0 TIPS 916,171 4.8 5.0 Real Estate 595,761 3.1 5.0 Receipt & Disbursement 88,424 0.5 - Galliard Cash 40,600 0.2 - Total Fund 19,273,042 100.0 100.0 14 BOGDAHN GROUP Winter Springs General Employees General Plan and Trust Asset Allocation History As of March 31, 2010 Asset Allocation History by Portfolio Total Domestic Equity Snow Capital Mgmt. Equity Dalton, Greiner, Hartman, Maher & Co Lateef Asset Mgmt.Equity Total International Equity RBC Global (Voyageur) Total Fixed Income Galliard Core Fixed Income Galliard TIPS American Stable Value Fund Receipt & Disbursement Galliard Cash Total Fund Portfolio Asset Allocation History by Segment lnn n 0 C. O U O M. 9,856,099 51.14 4,968,701 25.78 4,887,399 25.36 2,910,875 15.10 2,910,875 15.10 5,781,283 30.00 4,865,111 25.24 916,171 4.75 595,761 3.09 88,424 0.46 40,600 0.21 19,273,042 100.00 8,825,671 48.31 3,971,638 21.74 4,854,033 26.57 2,431,014 13.31 2,431,014 13.31 6,265,208 34.29 5,123,295 28.04 1,141,913 6.25 605,618 3.31 141,982 0.78 18,269,494 100.00 8,076,514 46.61 3,596,107 20.75 4,480,407 25.86 2,318,143 13.38 2,318,143 13.38 6,205,557 35.81 5,089,040 29.37 1,116,517 6.44 639,006 3.69 88,380 0.51 17,327,600 100.00 6,767,374 44.28 2,985,975 19.54 3,781,399 24.74 1,762,078 11.53 1,762,078 11.53 5,893,704 38.56 4,813,261 31.49 1,080,442 7.07 714,964 4.68 146,556 0.96 15,284,676 100.00 5,528,248 41.38 2,336,270 17.49 3,191,977 23.90 1,277,678 9.56 1,277,678 9.56 5,532,936 41.42 4,481,961 33.55 1,050,975 7.87 785,600 5.88 233,801 1.75 13,358,262 100.00 9/07 12/07 3/08 6/08 9/08 12108 3/09 6/09 9/09 12/09 3/10 Domestic Equity International Equity Fixed Income Real Estate Cash Equivalent 15 BOGDAHN ` GROUP Winter Springs General Employees General Plan and Trust Financial Reconciliation Quarter to Date 1 Quarter Ending March 31, 2010 Total Domestic Equity 8,825,671 518,300 - - 19,583 -1,078 32,425 500,365 9,856,099 Lateef Asset Mgmt.Equity 4,854,033 - 193,900 - - 12,135 -567 11,619 228,350 4,887,399 Dalton, Greiner, Hartman, Maher & Co. 3,971,638 712,200 - -7,448 -511 20,806 272,015 4,968,701 Total International Equity 2,431,014 344,174 - - -5,574 -488 21,171 120,578 2,910,875 RBC Global (Voyageur) 2,431,014 344,174 - - -5,574 -488 21,171 120,578 2,910,875 Total Fixed Income 6,265,208 - 639,596 - - -3,709 - 286 5,059 154,606 5,781,283 Galliard Core Fixed Income 5,123,295 - 405,296 - - -3,243 -213 - 150,569 4,865,111 Galliard TIPS 1,141,913 - 234,300 - - -466 -73 5,059 4,037 916,171 American Stable Value Fund 605,618 -4,281 - - -1,541 - 4,281 -8,316 595,761 Receipt & Disbursement 141,982 - 259,415 445,453 - 232,859 - -6,741 3 - 88,424 Galliard Cash - 40,818 - - - -218 - - 40,600 Total Fund Portfolio 18,269,494 - 445,453 - 232,859 - 30,408 -8,811 62,939 767,233 19,273,042 M BOGDAHN GROUP Winter Springs General Employees General Plan and Trust Financial Reconciliation Fiscal Year to Date October 1, 2009 To March 31, 2010 Total Domestic Equity 8,076,514 757,700 - - 37,525 -2,059 64,279 997,190 9,856,099 Lateef Asset Mgmt.Equity 4,480,407 - 74,200 - - 23,334 -1,105 25,376 480,255 4,887,399 Dalton, Greiner, Hartman, Maher & Co. 3,596,107 831,900 - - 14,191 -954 38,903 516,935 4,968,701 Total International Equity 2,318,143 424,948 - - - 10,748 -901 26,073 153,360 2,910,875 RBC Global (Voyageur) 2,318,143 424,948 - - - 10,748 -901 26,073 153,360 2,910,875 Total Fixed Income 6,205,557 - 639,387 - - -8,127 -1,053 9,831 214,462 5,781,283 Galliard Core Fixed Income 5,089,040 - 405,087 - - -7,243 -843 - 189,245 4,865,111 Galliard TIPS 1,116,517 - 234,300 - - -884 -209 9,831 25,217 916,171 American Stable Value Fund 639,006 -9,035 - - -3,177 - 13,637 - 44,671 595,761 Receipt & Disbursement 88,380 - 575,043 996,882 - 410,194 - - 11,607 5 - 88,424 Galliard Cash - 40,818 - - - -218 - - 40,600 Total Fund Portfolio 17,327,600 - 996,882 - 410,194 - 59,577 - 15,838 113,825 1,320,342 19,273,042 17 BOGDAHN GROUP Winter Springs General Employees General Plan and Trust Comparative Performance Trailing Returns As of March 31, 2010 otal Fund (Net) 4.32 (20) 7.74 (35) 33.89 (43) -1.32 (78) 1.18 (84) 2.62 (96) 3.17 N/A 11/01/2000 otal Fund Policy 3.63 (64) 7.15 (61) 30.45 (67) 0.07 (43) 2.46 (51) 3.95 (67) 2.49 N/A Difference 0.69 0.59 3.44 -1.39 -1.28 -1.33 0.68 11 Public Plans -Total Fund Median 3.80 7.38 32.74 -0.14 2.46 4.35 N/A otal Fund (New Mgrs) (Net) 4.34 (19) 7.76 (35) 33.91 (43) N/A N/A N/A -4.02 N/A 10/01/2007 otal Fund Policy 3.63 (64) 7.15 (61) 30.45 (67) 0.07 (43) 2.46 (51) 3.95 (67) -2.24 N/A Difference 0.71 0.61 3.46 N/A N/A N/A -1.78 11 Public Plans -Total Fund Median 3.80 7.38 32.74 -0.14 2.46 4.35 N/A otal Fund (Gross) 4.50 (13) 8.10 (27) 34.72 (36) -0.68 (66) 1.84 (69) 3.29 (86) 3.87 N/A 11/01/2000 otal Fund Policy 3.63 (64) 7.15 (61) 30.45 (67) 0.07 (43) 2.46 (51) 3.95 (67) 2.49 N/A ifference 0.87 0.95 4.27 -0.75 -0.62 -0.66 1.38 11 Public Plans -Total Fund Median 3.80 7.38 32.74 -0.14 2.46 4.35 N/A otal Fund (New Mgrs) (Gross) 4.52 (13) 8.12 (27) 34.74 (35) N/A N/A N/A -3.46 N/A 10/01/2007 otal Fund Policy 3.63 (64) 7.15 (61) 30.45 (67) 0.07 (43) 2.46 (51) 3.95 (67) -2.24 N/A ifference 0.89 0.97 4.29 N/A N/A N/A -1.22 11 Public Plans -Total Fund Median 3.80 7.38 32.74 -0.14 2.46 4.35 N/A Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. $ ` B G 1lAi 11 V �" GROUP Winter Springs General Employees General Plan and Trust Comparative Performance Trailing Returns As of March 31, 2010 otal Equity 5.51 11.14 58.16 -3.68 -0.07 2.37 2.66 01/01/2001 otal Equity Policy 4.79 10.09 47.54 -4.64 -0.65 2.06 0.91 lifference 0.72 1.05 10.62 0.96 0.58 0.31 1.75 otal Domestic Equity 5.72 (33) 12.51 (24) 53.59 (14) -2.52 (31) 0.45 (41) 2.44 (55) 2.35 (23) 11/01/2000 otal Domestic Equity Policy 5.94 (24) 12.19 (33) 50.36 (35) -4.04 (59) -0.30 (61) 2.00 (70) -0.22 (83) lifference -0.22 0.32 3.23 1.52 0.75 0.44 2.57 S Core /LC Equity (SA +CF) Median 5.41 11.75 48.85 -3.74 -0.05 2.56 0.63 otal International Equity 5.07 (5) 6.69 (18) 78.49 (6) -8.39 (90) -1.81 (89) 3.20 (89) 3.70 (99) 11/01/2000 1SCI EAFE Index 0.94 (65) 3.18 (60) 55.20 (43) -6.55 (74) -0.38 (74) 4.24 (77) 3.39 (100) ifference 4.13 3.51 23.29 -1.84 -1.43 -1.04 0.31 itl Active Value Equity (SA +CF) Median 1.92 4.57 53.54 -4.62 1.24 5.35 7.44 otal Fixed Income 2.60 3.67 12.95 5.76 5.80 4.96 5.96 11/01/2000 otal Fixed Policy 1.81 2.34 7.40 6.19 6.29 5.47 6.10 lifference 0.79 1.33 5.55 -0.43 -0.49 -0.51 -0.14 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. 0 ` B G 1lAi 11 V �" GROUP Winter Springs General Employees General Plan and Trust Comparative Performance Trailing Returns As of March 31, 2010 ton, Greiner, Hartman, Maher & Co. sell 3000 Value Index Eerence All Cap Value Equity (SA +CF) Median eef Asset Mgmt.Equity sell 1000 Growth Index Eerence Growth /LC Equity (SA +CF) Median C Global (Voyageur) Cl EAFE Index Eerence Active Value Equity (SA +CF) Median liard Core Fixed Income clays Capital Intermediate Aggregate Eerence Int Fixed Income (SA +CF) Median liard TIPS clays Capital TIPS Eerence TIPS (SA +CF) Median erican Stable Value Fund REIF Property Index Eerence Private RE -Open End (SA +CF) Median 6.12 (60) 13.73 (18) N/A N/A N/A N/A 41.41 (33) 05/01/2009 7.05 (39) 11.51 (50) 54.46 (66) -7.21 (88) -1.84 (85) 1.18 (84) 38.99 (46) -0.93 2.22 N/A N/A N/A N/A 2.42 6.46 11.51 56.40 -2.53 0.59 3.91 38.35 5.33 (30) 11.47 (60) 47.54 (48) N/A N/A N/A -1.99 (7) 10/01/2007 4.65 (51) 12.96 (30) 49.75 (33) -0.78 (45) 1.12 (44) 3.42 (54) -5.11 (40) 0.68 -1.49 -2.21 N/A N/A N/A 3.12 4.66 12.04 47.06 -1.08 0.85 3.54 -5.81 5.07 (5) 6.69 (18) 78.49 (6) N/A N/A N/A N/A 10/01/2007 0.94 (65) 3.18 (60) 55.20 (43) -6.55 (74) -0.38 (74) 4.24 (77) -10.95 (81) 4.13 3.51 23.29 N/A N/A N/A N/A 1.92 4.57 53.54 -4.62 1.24 5.35 -8.44 3.01 (3) 3.80 (11) 14.45 (14) N/A N/A N/A 5.52 (87) 10/01/2007 1.81 (56) 2.34 (61) 7.40 (75) 6.19 (67) 6.27 (68) 5.47 (68) 6.46 (66) 1.20 1.46 7.05 N/A N/A N/A -0.94 1.85 2.51 9.35 6.63 6.52 5.69 6.77 0.68 (55) 3.02 (33) 6.45 (70) N/A N/A N/A 5.88 (69) 10/01/2007 0.56 (73) 2.34 (93) 6.18 (86) 6.01 (76) 5.85 (79) 4.84 (85) 5.69 (79) 0.12 0.68 0.27 N/A N/A N/A 0.19 0.68 2.72 6.67 6.31 6.10 5.10 6.09 -0.67 (79) -4.86 (79) -20.21 (63) N/A N/A N/A -14.64 (39) 10/01/2007 0.76 (22) -1.36 (20) -9.59 (19) -4.31 (6) 0.54 (4) 4.19 (1) -8.13 (6) -1.43 -3.50 -10.62 N/A N/A N/A -6.51 0.00 -2.85 -16.90 -12.55 -7.00 -0.18 -16.08 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were FHr, hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. B GDAHN `� GROUP Winter Springs General Employees General Plan and Trust Comparative Performance Fiscal Year Returns As of March 31, 2010 Total Fund (Net) 7.74 (35) 0.73 (5 9) -16.82 (91) 13.03 (77) 7.89 (68) 11.07 (67) 12.18 (36) Total Fund Policy 7.15 (61) 0.33 (63) -12.11 (30) 11.97 (91) 9.55 10.76 (70) 11.65 (47) Difference 0.59 0.40 -4.71 1.06 -1.66 0.31 0.53 All Public Plans -Total Fund Median 7.38 1.36 -13.64 14.43 8.74 12.54 11.19 Total Fund (New Mgrs) (Net) 7.76 (35) 0.68 (60) -16.82 (91) N/A N/A N/A N/A Total Fund Policy 7.15 (61) 0.33 (63) -12.11 (30) 11.97 (91) 9.55 (32) 10.76 (70) 11.65 (47) Difference 0.61 0.35 -4.71 N/A N/A N/A N/A All Public Plans -Total Fund Median 7.38 1.36 -13.64 14.43 8.74 12.54 11.19 Total Fund (Gross) 8.10 (27) 1.44 (49) -16.46 (90) 13.92 (60) 8.62 (52) 11.82 (61) 13.05 (24) Total Fund Policy 7.15 (61) 0.33 (63) -12.11 (30) 11.97 (91) 9.55 (32) 10.76 (70) 11.65 (47) Difference 0.95 1.11 -4.35 1.95 -0.93 1.06 1.40 All Public Plans -Total Fund Median 7.38 1.36 -13.64 14.43 8.74 12.54 11.19 Total Fund (New Mgrs) (Gross) 8.12 (27) 1.39 (50) -16.46 (90) N/A N/A N/A N/A Total Fund Policy 7.15 (61) 0.33 (63) -12.11 (30) 11.97 (91) 9.55 (32) 10.76 (70) 11.65 (47) Difference 0.97 1.06 -4.35 N/A N/A N/A N/A All Public Plans -Total Fund Median 7.38 1.36 -13.64 14.43 8.74 12.54 11.19 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to l ew policy. See benchmark history for details. ` B GDAHN �" GROUP Winter Springs General Employees General Plan and Trust Comparative Performance Fiscal Year Returns As of March 31, 2010 Total Equity 11.14 -1.09 -25.61 18.52 10.83 15.40 17.60 Total Equity Policy 10.09 -6.91 -21.98 16.44 12.51 14.30 15.14 Difference 1.05 5.82 -3.63 2.08 -1.68 1.10 2.46 Total Domestic Equity 12.51 (24) -4.29 (27) -21.66 (56) 17.58 (36) 9.29 (75) 13.77 (59) 16.77 (20) Total Domestic Equity Policy 12.19 (33) -6.91 (60) -21.98 (65) 16.44 (58) 10.79 (51) 12.25 (80) 13.87 (59) Difference 0.32 2.62 0.32 1.14 -1.50 1.52 2.90 US Core /Large Cap Equity (SA +CF) Median 11.75 -6.49 -21.22 16.61 10.80 14.34 14.22 Total International Equity 6.69 (18) 11.87 (21) -39.55 (100) 23.63 (58) 19.84 (68) 26.83 (55) 22.94 (77) MSCI EAFE Index 3.18 (60) 3.80 (57) -30.13 (75) 25.38 (44) 19.65 (70) 26.32 (63) 22.52 (79) Difference 3.51 8.07 -9.42 -1.75 0.19 0.51 0.42 International Active Value Equity (SA +CF) Median 4.57 4.88 -27.10 24.45 20.94 27.05 25.41 Total Fixed Income 3.67 10.53 0.64 4.96 3.27 2.81 2.68 Total Fixed Policy 2.34 9.69 4.16 5.33 3.55 2.80 3.68 Difference 1.33 0.84 -3.52 -0.37 -0.28 0.01 -1.00 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to n w policy. See benchmark history for details. ` B GDAHN �" GROUP Winter Springs General Employees General Plan and Trust Comparative Performance Fiscal Year Returns As of March 31, 2010 Dalton, Greiner, Hartman, Maher & Co. Russell 3000 Value Index Difference US All Cap Value Equity (SA +CF) Median Lateef Asset Mgmt.Equity Russell 1000 Growth Index Difference US Grow Cap Equity (SA +CF) Median RBC Global (Voyageur) MSCI EAFE Index Difference International Active Value Equity (SA +CF) Median Galliard Core Fixed Income Barclays Capital Intermediate Aggregate Difference US Intermediate Fixed Income (SA +CF) Median Galliard TIPS Barclays Capital TIPS Difference US TIPS (SA +CF) Median American Stable Value Fund NCREIF Property Index Difference US Private Real Estate -Open End (SA +CF) Median 13.73 (18) N/A N/A N/A N/A N/A N/A 11.51 (50) -10.79 (96) -22.70 (67) 13.73 (71) 14.55 (9) 16.78 (60) 20.89 (57) 2.22 N/A N/A N/A N/A N/A N/A 11.51 - 3.08 - 20.42 16.37 10.17 20.02 21.13 11.47 (60) 0.53 (19) -15.13 (14) N/A N/A N/A N/A 12.96 (30) -1.85 (35) -20.88 (52) 19.35 (55) 6.04 (58) 11.60 (71) 7.51 (74) -1.49 2.38 5.75 N/A N/A N/A N/A 12.04 -3.11 -20.62 19.88 6.79 14.04 10.05 6.69 (18) 11.87 (21) N/A N/A N/A N/A N/A 3.18 (60) 3.80 (57) -30.13 (75) 25.38 (44) 19.65 (70) 26.32 (63) 22.52 (79) 3.51 8.07 N/A N/A N/A N/A N/A 4.57 4.88 -27.10 24.45 20.94 27.05 25.41 3.80 (11) 12.08 (39) -1.68 (95) N/A N/A N/A N/A 2.34 (61) 9.69 (80) 4.16 (34) 5.33 (67) 3.84 (58) 2.23 (41) 3.39 (27) 1.46 2.39 -5.84 N/A N/A N/A N/A 2.51 11.44 3.24 5.47 3.90 2.07 2.87 3.02 (33) 3.97 (88) 7.72 (13) N/A N/A N/A N/A 2.34 (93) 5.67 (67) 6.20 (58) 4.97 (58) 1.91 (75) 5.32 (52) 7.52 (38) 0.68 - 1.70 1.52 N/A N/A N/A N/A 2.72 6.10 6.31 4.98 2.08 5.36 7.50 -4.86 (79) -32.42 (37) 4.72 (39) N/A N/A N/A N/A -1.36 (20) -22.09 (9) 5.27 (28) 17.31 (67) 17.62 (5 3) 19.19 (67) 12.41 (52) - 3.50 - 10.33 - 0.55 N/A N/A N/A N/A -2.85 -33.44 3.47 18.34 17.92 19.86 12.50 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to 3 w policy. See benchmark history for details. ` B GDAHN �" GRoUP Winter Springs General Employees General Plan and Trust Total Fund (Net) March 31, 2010 Financial Reconciliation 1 Quarter Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec.// Deprec. As of 12/31/2009 3/31/2010 Total Fund (Net) 18,269 - 445 233 -30 -9 63 767 19,273 Financial Reconciliation October 1, 2009 T1 March 31, 20 10 Market Value Market Value Net Capital As of Transfers Contributions Distributions Fees Expenses Income Apprec.// Deprec. As of 9/30/2009 3/31/2010 Total Fund (Net) 17,328 997 -410 -60 -16 114 1,320 19,273 Peer Group Public Plans-Total Plans-Total Fund Cummulative Performance 80.00 60.00 40.00 a 20.00 L 7 x 0.00 -20.00 -40.00 $145.0 133.6 $130.0 131.1 $115.0 $100.0 1 Oct -2009 1 2 3 4 5 $85.0 Quarter To Year Years Years Years Years Mar -2010 ■ Total Fund (Net) 4.32 (20) 7.74 (35) 33.89 (43) -1.76 (79) -1.32 (78) 1.18 (84) 2.62 (96) • Total Fund Policy 3.63 (64) 7.15 (61) 30.45 (67) 0.05 (48) 0.07 (43) 2.46 (51) 3.95 (67) $70.0 12/00 12/02 12/04 12/06 12/08 3/10 Median 3.80 7.38 32.74 -0.06 -0.14 2.46 4.35 -Total Fund (Net) Total Fund Policy Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Total Fund (Net) 3.28 (64) 11.36 (52) 11.59 (34) -4.27 (24) -15.33 (86) -6.59 (29) Total Fund Policy 3.40 (52) 10.55 (67) 10.13 (57) -6.14 (59) -12.19 (43) -5.08 (7) All Public Plans -Total Fund Median 3.41 11.48 10.59 -5.74 -12.80 -7.65 24 BOGDAHN GROU Winter Springs General Employees General Plan and Trust Total Fund (Net) March 31, 2010 _IV.V 20.0 10.0 z 0.0 9 a w -10.0 R 0 F -20.0 Over P erforman ce -20.0 -10.0 0.0 10.0 Total Fund Policy ( %) -W Over Performance -W Under Performance Jun -2005 7.50 5.00 2.50 0.00 L -2.50 7 a -5.00 -7.50 Under Performance 20.0 30.0 Mar -2010 0.00 5.00 10.00 15.00 20.00 c 25.00 0.00 5.00 10.00 15.00 20.00 R a • Risk (Standard Deviation %) 50.00 • Risk (Standard Deviation %) L ■ Return Standard Deviation a Return Standard Deviation L 75.00 ■ Total Fund (Net) -1.32 0 ■ Total Fund (Net) 2.62 a • Total Fund Policy 100.00 12.86 • Total Fund Policy 3.95 6'05 6/06 6/07 - Median Total Period 5 -25 25- Median - Median 4.35 Count Count ■ Total Fund (Net) 0 (0 %) 4 (20 %) • Total Fund Policv 0 (0 %) 10 (50 %) 10.00 8.00 6.00 = 4.00 L 2.00 a 0.00 M�eh le 0 6/08 6/09 3/10 Median -75 75 -95 Count Count 6 (30 %) 10 (50 %) 9 (45 %) 1 (5 %) 0.00 5.00 10.00 15.00 20.00 25.00 0.00 5.00 10.00 15.00 20.00 25.00 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation ■ Total Fund (Net) -1.32 14.83 ■ Total Fund (Net) 2.62 11.90 • Total Fund Policy 0.07 12.86 • Total Fund Policy 3.95 10.44 - Median -0.14 14.01 - Median 4.35 11.48 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total Fund (Net) 3 13 109.67 121.23 -1.23 -0.35 -0.14 1.14 10.70 Total Fimd Policv 100.00 100.00 0.00 N/A -0.08 1.00 8.94 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total Fund (Net) 2.49 102.82 122.51 -1.66 -0.45 0.04 1.12 8.31 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 0.16 1.00 6.93 25 BOGDAHN GROU Winter Springs General Employees General Plan and Trust Total Domestic Equity March 31, 2010 Financial Reconciliation I tl 4!) pp F a L $80.0 Market Value a 1 Oct -2009 0.00 2 Market Value 4 5 Net Capital Quarter As of Contributions Distributions Fees Expenses Income Years As of 12/31/2009 Transfers Apprec.// Deprec. 3/31/2010 Total Domestic Equity 8,826 18 -20 -1 32 500 9,856 Financial Reconciliation OctI 1 March 31, 20 10 12.51 (24) 53.59 (14) -1.95 (30) -2.52 (31) 0.45 (41) 2.44 (55) Market Value • Total Domestic Equity Policy Market Value 12.19 (33) 50.36 (35) Net -4.04 (59) -0.30 (61) 2.00 (70) Capital As of Contributions Distributions Fees Expenses Income As of 9/30/2009 Transfers 12/00 12/02 12/04 12/06 Apprec.// Deprec. 3/31/2010 Total Domestic Equity 8,077 758 -38 -2 64 997 9,856 Peer Group C omparative Perfo Core/Large Cap Equity (SA+CF) Cumulative Perfo 1 1 1 1 1 $140.0 $125.8 $120.0 $105.8 $100.0 SU ln� 60 0p 4!) pp F a L $80.0 20.00 a 1 Oct -2009 0.00 2 -20.00 $140.0 $125.8 $120.0 $105.8 $100.0 $80.0 1 Oct -2009 1 2 3 4 5 Quarter To Year Years Years Years Years Mar -2010 ■ Total Domestic Equity 5.72 (33) 12.51 (24) 53.59 (14) -1.95 (30) -2.52 (31) 0.45 (41) 2.44 (55) • Total Domestic Equity Policy 5.94 (24) 12.19 (33) 50.36 (35) -3.52 (61) -4.04 (59) -0.30 (61) 2.00 (70) $60.0 12/00 12/02 12/04 12/06 12/08 3/10 Median 5.41 11.75 48.85 -3.10 -3.74 -0.05 2.56 - TotalDomesticEquity Total Domestic Equity Policy C omparative Perfo 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Total Domestic Equity 6.43 (25) 15.75 (33) 17.93 (15) -7.99 (23) -23.80 (87) -4.69 (10) Total Domestic Equity Policy 5.90 (53) 15.61 (38) 15.93 (41) -11.01 (69) -21.94 (60) -8.37 (41) US Core/Large Cap Equity (SA +CF) Median 5.98 15.28 15.56 -10.44 -21.66 -8.96 26 BOGDAHN GROU Winter Springs General Employees General Plan and Trust Total Domestic Equity March 31, 2010 30.0 Over 0.00 30.00 40.00 50.00 Performance 20.00 30.00 18.0 c 25.00 (Standard Deviation %) F a Risk (Standard Deviation %) ■ ■ 6.0 ■ L' 50.00 Return W -6.0 a 75.00 F lo 000 0 0 : 22.27 ■ Total Domestic Equity ■ • . 2.44 -18.0 o Under FY, • Total Domestic Equity Policy -4.04 G Performance 100.00 • Total Domestic Equity Policy 3 -30.0 6'05 6/06 6/07 6/08 6/09 3/10 0 30.0 18.0 6.0 6.0 18.0 30.0 Total Period 5 -25 25- Median Median -75 75 -95 Total Domestic Equity Policy( %) 2.56 Count Count Count Count Historical ■ Total Domestic Equity 20 0 (0 %) 7 (35 %) 7 (35 %) 6 (30 %) f Under Performance f Over Performance f Jun -2005 Mar -2010 • Total Domestic Equity Policy 20 0 (0 %) 0 (0 %) 14 (70 %) 6 (30 %) 15.00 10.00 5.00 0.00 L -5.00 a -lo.00 -15.00 15.00 10.00 5.00 a 0.00 a 5.00 0.00 10.00 20.00 30.00 40.00 50.00 0.00 10.00 20.00 30.00 40.00 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation ■ Total Domestic Equity -2.52 22.27 ■ Total Domestic Equity 2.44 17.67 • Total Domestic Equity Policy -4.04 21.52 • Total Domestic Equity Policy 2.00 17.28 - Median -3.74 21.29 - Median 2.56 17.18 Historical Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total Domestic Equity 5 57 102.26 96.05 1.76 0.31 -0.10 1.01 16.25 Total Domestic Equity Policy 0 00 100.00 100.00 0.00 N/A -0.19 1.00 15.98 Historical Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total Domestic Equity 43.94 134.20 97.10 8.54 0.19 0.19 0.92 23.85 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 N/A 0.03 1.00 12.53 27 BOGDAHN t GROUP Winter Springs General Employees General Plan and Trust Lateef Asset Mgmt.Equity March 31, 2010 Financial Reconciliation 1 Quarter Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec.// Deprec. As of 12/31/2009 3/31/2010 Lateef Asset Mgmt.Equity 4,854 -194 -12 -1 12 228 4,887 Financial Reconciliation October 1, 2009 To March 31, 20 10 0.00 Quarter -20.00 Year Years Years Years Years Market Value Market Value Mar -2010 Net Capital As of Transfers Contributions Distributions Fees Expenses Income Apprec.// Deprec. As of 47.54 (48) 9/30/2009 N/A N/A 3/31/2010 Lateef Asset Mgmt.Equity 4,480 -74 -23 -1 _ 480 4,887 Peer Group 1.12 (44) Growth/Large Cap Equity Performance 9/07 $1100 9/09 3/10 Median 80.00 60.00 $100.0 $95.1 $90.0 $ 87.7 $80.0- $70.0- 40.00 F 1 a L 4 5 20.00 a 0.00 Quarter -20.00 $100.0 $95.1 $90.0 $ 87.7 $80.0- $70.0- 1 Oct -2009 1 2 3 4 5 $60.0 Quarter To Year Years Years Years Years Mar -2010 ■ Lateef Asset Mgmt.Equity 5.33 (30) 11.47 (60) 47.54 (48) 1.68 (12) N/A N/A N/A • Russell 1000 Growth Index 4.65 (51) 12.96 (30) 49.75 (33) -0.80 (39) -0.78 (45) 1.12 (44) 3.42 (54) $50.0 9/07 3/08 9/08 3/09 9/09 3/10 Median 4.66 12.04 47.06 -1.77 -1.08 0.85 3.54 -LateefAssetMgmt.Equity -Russell 1000 Growth Index Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Lateef AssetMgmt.Equity 5.83 (77) 15.34 (25) 14.76 (53) -5.85 (66) -19.33 (10) -0.50 (5) Russell 1000 Growth Index 7.94 (29) 13.97 (54) 16.32 (34) -4.12 (44) -22.79 (55) -12.33 (48) US Growth/Large Cap Equity (SA +CF) Median 7.06 14.04 15.00 -4.67 -22.53 -12.44 28 BOGDAHN GROUP Winter Springs General Employees General Plan and Trust Dalton, Greiner, Hartman, Maher & Co. March 31, 2010 Financial Reconciliation 1 Oct -2009 1 2 Market Value 4 5 Market Value Net Capital As of Contributions Distributions Fees Expenses Income As of 12/31/2009 Transfers Apprec.// Deprec. 3/31/2010 Dalton, Greiner, Hartman, Maher & Co. 3,972 712 -7 -1 21 272 4,969 Financial Reconciliation Oct1 1' 1 March 31, 20 10 Market Value ■ Dalton, Greiner, Hartman, Maher & Co. 6.12 (60) 13.73 (18) Market Value N/A Net Capital N/A As of Contributions Distributions Fees Expenses Income As of 9/30/2009 Transfers Apprec.// Deprec. 3/31/2010 Dalton, Greiner, Hartman, Maher & Co. 3,596 -14 1 39 517 4,969 Peer Group Analysis - US All Cap Value Equity (SA +CF) Cumulative Performance L 25.00 a 0.00 -25.00 $130.0 $120.0 $110.0 1 Oct -2009 1 2 3 4 5 Quarter To Year Years Years Years Years Mar -2010 ■ Dalton, Greiner, Hartman, Maher & Co. 6.12 (60) 13.73 (18) N/A N/A N/A N/A N/A $100.0 • Russell 3000 Value Index 7.05 (39) 11.51 (50) 54.46 (66) -5.47 (94) -7.21 (88) -1.84 (85) 1.18 (84) 6/09 9/09 12/09 3/10 - Dalton, Greiner, Hartman, Maher & Co. Median 6.46 11.51 56.40 0.85 -2.53 0.59 3.91 -Russell 3000 Value Index Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Dalton, Greiner, Hartman, Maher & Co. 7.17 (1) 16.26 (66) N/A N/A N/A N/A Russell 3000 Value Index 4.17 (79) 18.59 (47) 16.81 (78) -17.00 (100) -22.41 (49) -5.26 (25) US All Cap Value Equity (SA +CF) Median 5.01 18.23 18.13 -10.25 -22.53 -7.82 29 BOGDAHN GROUP Winter Springs General Employees General Plan and Trust Total International Equity March 31, 2010 Financial Reconciliation F a L 25.00 a Market Value 0.00 -25.00 Market Value Net Capital As of Contributions Distributions Fees Expenses Income As of 12/31/2009 Transfers Apprec.// Deprec. 3/31/2010 Total International Equity 2,431 344 -6 21 121 2,911 Financial Reconciliation OctI I' 1 March 31, 20 10 Market Value Market Value Net Capital As of Contributions Distributions Fees Expenses Income As of 9/30/2009 Transfers Apprec.// Deprec. 3/31/2010 Total International Equity 2,318 425 -11 -1 16 153 2,911 Peer Group 1 1 Performance 7 pp $150.0 IJ3:3 $100.0 1 Oct -2009 1 2 3 4 5 Quarter To Year Years Years Years Years Mar -2010 ■ Total International Equity 5.07 (5) 6.69 (18) 78.49 (6) -10.29 (88) -8.39 (90) -1.81 (89) 3.20 (89) • MSCI EAFE Index 0.94 (65) 3.18 (60) 55.20 (43) -8.62 (74) -6.55 (74) -0.38 (74) 4.24 (77) $50.0 12/00 12/02 12/04 12/06 12/08 3/10 Median 1.92 4.57 53.54 -6.09 -4.62 1.24 5.35 -Total International Equity _MSCIEAFEIndex Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Total International Equity 1.54 (64) 27.00 (3) 31.73 (9) -9.63 (20) -26.00 (98) -24.28 (94) MSCI EAFE Index 2.22 (50) 19.52 (45) 25.85 (29) -13.85 (60) -19.90 (57) -20.50 (79) International Active Value Equity (SA +CF) Median 2.17 19.23 23.58 -13.05 -19.35 -17.03 30 BOGDAHN GROUP 50.00 F a L 25.00 a 0.00 -25.00 $150.0 IJ3:3 $100.0 1 Oct -2009 1 2 3 4 5 Quarter To Year Years Years Years Years Mar -2010 ■ Total International Equity 5.07 (5) 6.69 (18) 78.49 (6) -10.29 (88) -8.39 (90) -1.81 (89) 3.20 (89) • MSCI EAFE Index 0.94 (65) 3.18 (60) 55.20 (43) -8.62 (74) -6.55 (74) -0.38 (74) 4.24 (77) $50.0 12/00 12/02 12/04 12/06 12/08 3/10 Median 1.92 4.57 53.54 -6.09 -4.62 1.24 5.35 -Total International Equity _MSCIEAFEIndex Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Total International Equity 1.54 (64) 27.00 (3) 31.73 (9) -9.63 (20) -26.00 (98) -24.28 (94) MSCI EAFE Index 2.22 (50) 19.52 (45) 25.85 (29) -13.85 (60) -19.90 (57) -20.50 (79) International Active Value Equity (SA +CF) Median 2.17 19.23 23.58 -13.05 -19.35 -17.03 30 BOGDAHN GROUP Winter Springs General Employees General Plan and Trust Total International Equity March 31, 2010 30.0 F � 10.0 4 W R -10.0 C O -30.0 -50.0 Over P erforman ce Under Performance R c -50.0 -30.0 -10.0 10.0 F MSCI EAFE Index( %) -W Over Performance -W Under Performance Jun -2005 10.00 5.00 0.00 _ -5.00 -10.00 a -15.00 30.0 50.0 -*- Mar -2010 0.00 c 25.00 a 50.00 L Qi L 75.00 a 100.00 6/05 Total Period ■ Total International Equity 20 • MSCI EAFE Index 20 15.00 12.00 9.00 = 6.00 3.00 a 0.00 0 15.00 20.00 25.00 30.00 35.00 40.00 10.00 15.00 20.00 25.00 30.00 Risk (Standard Deviation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation ■ Total International Equity -8.39 33.59 ■ Total International Equity 3.20 27.33 • MSCI EAFE Index -6.55 27.02 • MSCI EAFE Index 4.24 22.36 - Median -4.62 25.59 - Median 5.35 21.28 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total International Equity 9 15 107.83 109.21 -0.31 -0.08 -0.23 1.12 22.10 MSCI EAFE Index 0 00 100.00 100.00 0.00 N/A -0.24 1.00 18.84 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total International Equity 7.17 105.91 108.71 -0.93 -0.03 0.14 1.11 17.29 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.17 1.00 14.79 ca BOGDAHN GROUP 6/06 6/07 6/08 6/09 3/10 5 -25 25- Median Median -75 75 -95 Count Count Count Count 0 (0 %) 0 (0 %) 9 (45 %) 11 (55 %) 0 (0 %) 1 (5 %) 15 (75 %) 4 (20 %) Winter Springs General Employees General Plan and Trust RBC Global (Voyageur) March 31, 2010 Financial Reconciliation 1 Quarter Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec./Deprec. As of 12/31/2009 3/31/2010 RBC Global (Voyageur) 2,431 344 -6 21 121 2,911 Financial Reconciliation October 1 March 31, 20 10 $20.0 Quarter To Market Value Years Years Market Value Years Net Capital As of Contributions Distributions Fees Expenses Income As of 9/30/2009 Transfers ApprecJ Deprec. 3/31/2010 RBC Global (Voyageur) 2,318 425 -11 -1 16 153 2,911 Peer Group 1 1 Performance N/A N/A N/A • MSCI EAFE Index $1,00 3.18 (60) 7 00 L 25.00 a 0.00 -25.00 $100.0 $80.0- $74.8 $60.0- $40.0- 1 Oct -2009 1 2 3 4 5 $20.0 Quarter To Year Years Years Years Years Mar -2010 ■ RBC Global (Voyageur) 5.07 (5) 6.69 (18) 78.49 (6) -10.29 (88) N/A N/A N/A • MSCI EAFE Index 0.94 (65) 3.18 (60) 55.20 (43) -8.62 (74) -6.55 (74) -0.38 (74) 4.24 (77) $0.0 9/07 3/08 9/08 3/09 9/09 3/10 Median 1.92 4.57 53.54 -6.09 -4.62 1.24 5.35 -RBC Global (Voyageur) -MSCIEAFEIndex Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 RBC Global (Voyageur) 1.54 (64) 27.00 (3) 31.73 (9) -9.63 (20) -26.00 (98) -24.28 (94) MSCI EAFE Index 2.22 (50) 19.52 (45) 25.85 (29) -13.85 (60) -19.90 (57) -20.50 (79) International Active Value Equity (SA +CF) Median 2.17 19.23 23.58 -13.05 -19.35 -17.03 32 BOGDAHN ` GROU Winter Springs General Employees General Plan and Trust Galliard Core Fixed Income March 31, 2010 Financial Reconciliation 1 Quarter Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec.// Deprec. As of 12/31/2009 3/31/2010 Galliard Core Fixed Income 5,123 -405 -3 151 4,865 Financial Reconciliation October 1 March 31, 20 10 a L 5 7 $105.0 V. 4.50 Market Value 0.00 To Market Value Years Net Capital Years As of Contributions Distributions Fees Expenses Income As of 9/30/2009 Transfers Apprec.// Deprec. 3/31/2010 Galliard Core Fixed Income 5,089 -405 -7 -1 189 4,865 Peer Group 1 Income (SA+CF) Cumulative Performance ■ Galliard Core Fixed Income 3.01 (3) 3.80 (11) 14.45 (14) 5.89 (46) N/A X1,00 N/A 22.50 18.00 13.50 $116.9 $115.0 2 9.00 a L 5 7 $105.0 V. 4.50 $1000 0.00 To -4.50 1 $116.9 $115.0 2 $114.4 $110.0 5 $105.0 $1000 Quarter To 1 Oct -2009 1 2 3 4 5 Quarter To Year Years Years Years Years Mar -2010 ■ Galliard Core Fixed Income 3.01 (3) 3.80 (11) 14.45 (14) 5.89 (46) N/A N/A N/A $95.0 • Barclays Capital Intermediate Aggregate 1.81 (56) 2.34 (61) 7.40 (75) 5.38 (67) 6.19 (67) 6.27 (68) 5.47 (68) 9/07 3/08 9/08 3/09 9/09 3/10 Galliard Core Fixed Income Median 1.85 2.51 9.35 5.81 6.63 6.52 5.69 -Barclays Capital Intermediate Aggregate Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Galliard Core Fixed Income 0.76 (36) 5.22 (18) 4.80 (17) 2.34 (4) -0.68 (90) -3.02 (85) Barclays Capital Intermediate Aggregate 0.53 (55) 3.21 (69) 1.68 (74) 0.91 (38) 3.58 (59) -0.13 (22) US Intermediate Fixed Income (SA +CF) Median 0.59 3.66 2.64 0.74 4.22 -1.16 33 BOGDAHN GROU Winter Springs General Employees General Plan and Trust Galliard TIPS March 31, 2010 Financial Reconciliation 1 Oct -2009 6.00 Market Value 3 4 7 Market Value a ' Net Capital 3.00 As of Contributions Distributions Fees Expenses Income As of 12/31/2009 Transfers Apprec.// Deprec. 3/31/2010 Galliard TIPS 1,142 -"34 - 5 4 916 Financial Reconciliation Oct1 1' • To March 31, 20 10 ■ Galliard TIPS 0.68 (55) Market Value 6.45 (70) 2.00 (88) Market Value N/A Net Capital As of Contributions Distributions Fees Expenses Income As of 9/30/2009 Transfers Apprec.// Deprec. 3/31/2010 Galliard TIPS 1,117 -234 -1 l'' 25 916 Peer Group Analysis - US TIPS (SA +CF) Cumulative Performance •1, 115.4 $115.0 114.8 $110.0 $105.0 1 Oct -2009 6.00 a L 3 4 7 a ' 3.00 To 0.00 Years -3.00 115.4 $115.0 114.8 $110.0 $105.0 1 Oct -2009 1 2 3 4 5 Quarter To Year Years Years Years Years Mar -2010 ■ Galliard TIPS 0.68 (55) 3.02 (33) 6.45 (70) 2.00 (88) N/A N/A N/A • Barclays Capital TIPS 0.56 (73) 2.34 (93) 6.18 (86) 1.99 (89) 6.01 (76) 5.85 (79) 4.84 (85) $100.0 9/07 3/08 9/08 3/09 9/09 3/10 Median 0.68 2.72 6.67 2.47 6.31 6.10 5.10 - Galliard TIP S -Barclays Capital TIPS Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 Galliard TIPS 2.32 (20) 2.85 (85) 0.48 (91) 4.15 (82) -3.40 (70) -2.89 (19) Barclays Capital TIPS 1.76 (86) 3.08 (53) 0.66 (65) 5.52 (22) -3.48 (75) -3.54 (62) US TIPS (SA +CF) Median 1.92 3.08 0.69 4.95 -2.68 -3.51 34 BOGDAHN GROU Winter Springs General Employees General Plan and Trust American Stable Value Fund March 31, 2010 Financial Reconciliation I tl -10.00 Oct -2009 1 2 -20.00 Market Value 5 7 94 Market Value $ 67.3 Net Quarter -50.00 Capital Years As of Contributions Distributions Fees Expenses Income As of 12/31/2009 Transfers Apprec./Deprec. 3/31/2010 American Stable Value Fund 606 -4 -2 4 -8 596 Financial Reconciliation OctI 1 March 31, 20 10 ■ American Stable Value Fund -0.67 (79) -4.86 (79) -20.21 (63) -19.33 (48) N/A N/A N/A Market Value •NCREIF Property Index 0.76 (22) Market Value -9.59 (19) Net -4.31 (6) 0.54 (4) Capital $60.0 As of Contributions Distributions Fees Expenses Income As of 9/30/2009 Transfers ApprecJ Deprec. 3/31/2010 American Stable Value Fund 639 9 -3 14 -45 596 $1100 10.00 0.00 $100.0 $90.0 $80.0- -10.00 Oct -2009 1 2 -20.00 a L 5 7 94 -30.00 $ 67.3 -40.00 Quarter -50.00 $100.0 $90.0 $80.0- 1 Oct -2009 1 2 3 4 5 $70.0 $ 67.3 Quarter To Year Years Years Years Years Mar -2010 ■ American Stable Value Fund -0.67 (79) -4.86 (79) -20.21 (63) -19.33 (48) N/A N/A N/A •NCREIF Property Index 0.76 (22) -1.36 (20) -9.59 (19) -12.17 (14) -4.31 (6) 0.54 (4) 4.19 (1) $60.0 9/07 3/08 9/08 3/09 9/09 3/10 Median -0.01 -2.85 -16.90 -19.69 -12.55 -7.00 -0.18 - American Stable Value Fund _ NCREIF Property Index Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Dec -2009 Sep -2009 Jun -2009 Mar -2009 Dec -2008 Sep -2008 American Stable Value Fund -4.23 (61) -9.62 (67) -7.20 (46) -12.86 (39) -7.53 (26) -0.30 (48) NCREIF Property Index -2.11 (17) -3.32 (22) -5.20 (18) -7.33 (15) -8.29 (28) -0.17 (42) US Private Real Estate -Open End (SA +CF) Median -3.73 -7.30 -8.06 -14.81 -10.07 -0.30 35 BOGDAHN GROU Winter Springs General Employees General Plan and Trust Benchmark History As of March 31, 2010 Total Fund Effective Date: Jan -1976 S &P 500 Index Barclays Capital Aggregate MSCI EAFE Effective Date: Oct -2003 S &P 500 Index Barclays Capital Aggregate MSCI EAFE Effective Date: Sep -2006 S &P 500 Index Barclays Capital Intermediate Aggregate Effective Date: Oct -2009 Russell 3000 Index Barclays Capital Intermediate Aggregate MSCI EAFE Barclays Capital Global Inflation - Linked: U.S. TIPS NCREIF Property Index Total E Effective Date: Jan -1970 65.00 S &P 500 Index 90.00 30.00 MSCI EAFE 10.00 5.00 Effective Date: Oct -2003 S &P 500 Index 85.00 60.00 MSCI EAFE 15.00 30.00 10.00 Effective Date: Sep -2006 S &P 500 Index 100.00 60.00 Effective Date: Oct -2009 40.00 Russell 3000 Index 77.00 MSCI EAFE 23.00 50.00 25.00 Total Domestic Equity Policy 15.00 5.00 Allocation Mandate Weight Effective Date: Jan -1926 5.00 S &P 500 Index 100.00 Effective Date: Oct -2009 Russell 3000 Index 100.00 Total Fixed Effective Date: Nov -2000 Barclays Capital Aggregate Effective Date: Sep -2006 Barclays Capital Intermediate Aggregate 100.00 100.00 `7%, BOGDAHN GROUP Statistics Definitions Statistics Description 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. 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. 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. 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. Tracking Error -- A measure of the standard deviation of a portfolio's performance relative to the performance of an appropriate market benchmark. Information Ratio -- Measured by dividing the active rate of return by the tracking error. The higher the Information Ratio, the more value -added contribution by the manager. Consistency -- The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. The higher the consistency figure, the more value a manager has contributed to the product's performance. Excess Return -- Arithmetic difference between the managers return and the risk -free return over a specified time period. Active Return -- Arithmetic difference between the managers return and the benchmark return over a specified time period. Excess Risk -- A measure of the standard deviation of a portfolio's performance relative to the risk free return. Market Capture -- The ratio of average portfolio return over the benchmark during periods of positive benchmark return. Higher values indicate better product performance. ;vn Market Capture -- The ratio of average portfolio return over the benchmark during periods of negative benchmark return. Lower values indicate better product performance. Calculation based on monthly periodicity. 37 BOGDAHN GROUP City of Winter Springs General Employee Retirement System Compliance Checklist as of March 31, 2010 1. The Total Plan return equaled or exceeded the 8% actuarial earnings assumption over the trailing three and five year periods. ✓ 2. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three and five year periods. ✓ 3. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 1. Total equity returns meet or exceed the benchmark over the trailing three and five year periods. ✓ 2. Total equity returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 3. The total equity allocation was less than 75% of the total plan assets at market. ✓ 4. Total foreign equity was less than 20% of the total plan assets at cost. ✓ 1. Total fixed income returns meet or exceed the benchmark over the trailing three and five year periods. ✓ 2. Total fixed income returns ranked within the top 40th percentile of its peer group over the trailing three and five year periods. ✓ 3. All fixed income investments had a minimum rating of investment grade or higher. ✓ 3ger Compliance: Lateef Dalton Voyageur Galliarc Yes No N/A Yes No N/A Yes No N/A Yes No 1. Manager outperformed the index over the trailing three and five year periods. ' ✓ ✓ ✓ ✓ ✓ 2. Manager ranked within the top 40th percentile over trailing three and five year periods. ✓ ✓ ✓ ✓ ✓ 3. Less than four consecutive quarters of under performance relative to the benchmark. ✓ ✓ ✓ ✓ ✓ 4. Three and five -year down - market capture ratios less than the index. ✓ ✓ ✓ ✓ ✓ 38 City of Winter Springs General Employee Retirement System Compliance Checklist as of March 31, 2010 1. Manager outperformed the index over the trailing three and five year periods. ✓ 2. Manager ranked within the top 50th percentile over trailing three and five year periods. ✓ 3. Less than four consecutive quarters of under performance relative to the benchmark. ✓ 4. Three -year down - market capture ratio less than the index. ✓ 5. Standard deviation <= 150% of the index over the trailing three and five year periods. ✓ K7 Z£6L'Ot7Z'998 Z0Z£S uisuo3srA� `333int,�e11W 0081 wins and utsuo3sim '3 OSZ aalnP Al, iiW 118Z£ 12 ptiolj `opu - eijp 009 wins `peo'H pueIaatA 106b OPUL)IJO suoassaapmanpr� pup �uarugsa�ui �no�CSuaijdtuas dflox� NHVaDOU JH,L 1, S 09 stouttlI `atttAU OOZ alms pi ppijutAk OZ£V OB -C 3tua Winter Springs General Employees General Plan and Trust Asset Allocation And Performance Flash Report As of April 30, 2010 Total Fund Portfolio (Gross) 19,732 100.0 2.0 2.0 6.6 10.2 28.0 -1.1 4.0 4.0 11/01/2000 Total Fund Policy N/A N/A N/A N/A N/A N/A N/A N/A Difference N/A N/A N/A N/A N/A N/A N/A N/A Total Fund (Excl RE) (Gross) 19,137 97.0 2.0 2.0 6.8 10.8 30.0 4.3 11/01/2000 Total Fund Policy (Excl RE) 1.2 1.2 5.1 9.0 25.2 -0.3 4.5 2.7 Difference 0.8 0.8 1.7 1.8 4.8 -0.1 -0.1 1.6 Total Equity 13,129 66.5 2.4 2.4 8.1 13.8 42.5 N/A N/A 2.9 01/01/2001 Total Equity Policy 1.3 1.3 6.1 11.5 36.4 -5.6 2.7 1.0 Difference 1.1 1.1 2.0 2.3 6.1 N/A N/A 1.9 Total Domestic Equity 10,167 51.5 2.8 2.8 8.6 15.6 39.9 3.6 2.6 11/01/2000 Total Domestic Equity Policy 2.2 2.2 8.2 14.6 40.2 -4.7 2.8 0.0 Difference 0.6 0.6 0.4 1.0 -0.3 1.6 0.8 2.6 Total International Equity 2,961 15.0 1.3 1.3 6.5 8.1 54.0 4.0 3.8 11/01/2000 MSCI EAFE Index -1.7 -1.7 -0.8 1.4 35.0 -8.5 4.3 3.2 Difference 3.0 3.0 7.3 6.7 19.0 -0.8 -0.3 0.6 Results are preliminary and have not been confirmed. THE BOGDAHN GROUP Winter Springs General Employees General Plan and Trust Asset Allocation And Performance Flash Report As of April 30, 2010 nestic Equity ton, Greiner, Hartman, Maher & Co. 5,236 26.5 5.0 5.0 11.4 19.4 48.5 N/A N/A 48.5 05/01/2009 sell 3000 Value Index 0.8 3.0 3.0 10.2 6.3 4 3. 1 -7.4 2.2 43.1 Ference 1.6 2.0 2.0 1.2 4.6 5.4 N/A N/A 5.4 eef Asset Mgmt.Equity 4,931 25.0 0.5 0.5 5.9 12.0 32.7 N/A N/A -1.7 10/01/2007 ,sell 1000 Growth Index 10.8 1.1 1.1 5.8 14.2 38.2 -1.9 4.0 -4.5 Ference N/A -0.6 -0.6 0.1 -2.2 -5.5 N/A N/A 2.8 -rnational Equity C Global (Voyageur) 2,961 15.0 1.3 1.3 6.5 8.1 54.0 N/A N/A -11.8 11/01/2007 Cl EAFE Index -1.7 -1.7 -0.8 1.4 35.0 -8.5 4.3 -12.9 Ference 3.0 3.0 7.3 6.7 19.0 N/A N/A 1.1 Fixed Income Galliard Core Fixed Income 4,963 25.2 1.2 1.2 4.2 5.0 14.4 N/A N/A 5.8 10/01/2007 Barclays Capital Intermediate Aggregate 0.8 0.8 2.6 3.2 7.6 6.3 5.4 6.6 Difference 0.4 0.4 1.6 1.8 6.8 N/A N/A -0.8 Galliard TIPS 934 4.7 1.5 1.5 2.2 4.5 8.4 N/A N/A 6.3 10/01/2007 Barclays Capital Global Inflation - Linked: U.S. TIP 2.4 2.4 2.9 4.8 10.8 6.6 4.9 6.5 Difference -0.9 -0.9 -0.7 -0.3 -2.4 N/A N/A -0.2 Cash Receipt & Disbursement 88 0.4 0.0 0.0 0.0 0.0 0.1 N/A N/A 1.9 10/01/2007 Galliard Cash 23 0.1 0.0 0.0 N/A N/A N/A N/A N/A 0.0 03/01/2010 Results are preliminary and have not been confirmed. THE BOGDAHN GROUP American Realty* ,1L -� DGHM $ 4,647,380.60 Galliard ** . $ Galliard TIPS $ Lateef . R &D 915,853.18 RBC Global* L" 1$ 2,961,188.47 Totals $ 9,121,564.31 $ 2,961,188.47 $ *As of 3/31 $ 132,879.40 $ * *As of 4/30 0.71% 16% 24% 1 a io By Manager 3% American Realty $ 1,000,000.00 (- DGHM $ 4,169,973.06 Galliard 4,344,705.17�� Galliard TIPS $ 807,626.77 Lateef -t 4,198,563.39 R &D $ 133,081.00 Voyaguer _§L 3,521,374.30jllllllllllllllllllllllll� Totals $18,175,323.69 Winter Springs General Asset Allocation As of: May 24, 2010 4,986,331.34 894,475.67 5,880,807.01 • American Realty* • DGHM • Galliard ** • Galliard TIPS • Lateef • R &D • RBC Global ** $ 595,760.81 $ 595,760.81 ' 3.17% $ 57,499.12 $ 4,704,879.72 25.00% _' 202.04'$ 4,986,533.38 26.49% $ 21,377.51 $ 915,853.18 4.87% �§ 51,672` $ 4,525,856.46 24.04% $ 132,879.40 $ 132,879.40 0.71% F 2,961,188.47 15.73% $ 263,630.82 $ 18,822,951.42 100.00% 329 6% $ X1,000,000.00 5.50% 23% $ 4,170,831.20 22.95% 24% $j 4,276,417.01 23.53% 4% $ 832,921.16 4.58% 23% $' 4,378,444.79 24.09% 1% $ 133,081.00 0.73% 19% $ M383,628.54 18.62% $ 18,175,323.69 100.00% By Asset Class 0°2 50% ■ D. Equity ■ I. Equity ■ Fixed ■ Real Estate ■ Cash 3.17% $ — 25.00% $ 858.14 26.13% $ (68,288.16) 5.00% $ 25,294.39 25.00% $ 179,881.40 0.71% $ 15.00% $ (137,745.76) 100.00% $ 0.00