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2011 02 08 Regular 602 Winter Springs General (Quarterly Report)
Date: February 8, 2011 The attached document was provided to the Winter Springs Board of Trustees and was discussed during Regular Agenda Item "602" at the February 8, 2011 Regular Meeting. Winter Springs General Employees General Plan and Trust 4th Quarter 2010 THE BOGDAHN GROUP W W W. B O G D A I4 N G R O U R C:O M simplifying yore• fnve5hfcenf and fiduciary decisions Wh Quarter 2010 Market Environment THE BOGDAHN GROUP The Market Environment Major Market Index Performance Period Ended: December 30, 2010 Portfolio Attribution (Reference pages 18 -28 of the Bogdahn Group December 2010 Report) • Strong equity markets provided a big boost to Plan assets for the first quarter of the fiscal year. Both equity and Real Estate investments provided a significant offset to the net losses experienced in the bond market. Active management results were mixed during the quarter; the general Plan allocation was the primary driver of investment returns with the allocation increase to Real Estate nicely offsetting the declines in fixed income (the source of funding). • The Plan earned (5.78 %) net for the quarter, with year over year results for the period ended December of (13.61 %) net. Corresponding peer group rankings were (65th ) and (33rd ) percentile respectively. . • The most notable active manager contribution, continues to come from RBC where performance continues to exceeded already outsized benchmark returns impressively. Results for the quarter (9.87% vs. 6.65 %), and for the fiscal year (20.85% vs. 8.21 %). • The overall Fund performance rankings continue to be impacted by bond manager performance. Low quality continued the outperformance trend that has been in place for over a year now. While underperforming marginally for the quarter ( -1.05 vs. -0.75) Galliard performance remains ahead of the target index for the one year ended December (7.66% vs. 6.15 %). The quality mandate continues to impact peer group rankings negatively. • Plan allocation remains on target policy with monthly investment of net Plan contributions providing for full market exposure. • Additional Real Estate Mandate funding will be completed as manager capital calls are received. What helped? • Allocation shift from fixed income to Real Estate (4.1% average manager return vs. -1.05 Galliard). • Active management for the quarter from RBC Global (9.87% vs. 6.65 %) What hurt? • Domestic equity manager relative performance: Lateef (9.55% vs. 11.83 %), DGHM (8.45% vs. Recommendations: • Review additional domestic fixed income bond alternatives I11E BOGDAHN GROUP The Market Environment Major Market Index Performance Period Ended: December 31, 2010 ■ Although there was a performance lull during November, the Fed's "pro- growth" commitment to prevent a second leg down in economic activity gave investors the confidence to drive equity prices substantially higher during the 4th quarter. Using the S &P 500 as a domestic market proxy, the equity market managed a return of 10.8% for the quarter. The S &P 500's 15.1% for the year, combined with 2009's 26.5% return, represented the benchmark's first back -to -back double -digit calendar year results since the 2003 -2004 period. ■ The Russell data series' small (16.3 %) and mid cap (13.1%) indices posted their second consecutive quarter of outperformance relative to the broad (11.6 %) and large cap (11.2 %) benchmarks. As a result of this continued strength, both small (26.9 %) and mid cap (25.5 %) indices also recorded a solid premium over the broad (16.9 %) and large cap (16.1 %) benchmarks for the year. ■ International equity results were solid for the quarter with the MSCI- ACWxUS index returning 7.3% in U.S. Dollars (USD). The USD's continued weakness also provided a boost to un- hedged U.S. investors. However, general uncertainty surrounding the strength and sustainability of the global recovery, as well as ongoing sovereign concerns in several European countries, represented a drag on international performance relative to domestic results. ■ The majority of the fixed income indices experienced negative performance for the quarter. While all fixed income results were hurt by rising yields, the -2.3% return of the Government segment of the bond market was the largest drag on the quarter's broad fixed income index return of -1.3 %. The mortgage- backed index's return of 0.2% represented the only positive component of the broad, investment grade fixed income market for the quarter. Source: Barclays Capital, MSCI Capital Markets, Russell Investments & Zephyr 3 -Month T -Bill 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 US TIPS Barclays MBS Barclays Corp IG 0.0% -5.0% 0.0% 5.0% 1 -Year Performance 8.2% J 6.5% 5.5% 6.3% 5.4% 3 -Month T -Bill 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 11.6% 3 �I 9.0% 10.0% 15.0% 20.0% 19.2% 15.1% 16.9% 16.1% 25.5% 30.0% Ti BOGDAHN GROUP Quarter Performance MSCI ACWxUS J 7.3% MSCI EAFE 6.7% MSCI Emerg Mkts 7.4% S &P 500 10.8% Russell 3000 11.6% Russell 1000 11.2% Russell MidCap 13.1% Russell 2000 16.3% Barclays US Agg -1.3% Barclays US Govt -2.3% Barclays US TIPS -0.6% Barclays MBS 0.2% Barclays Corp IG -1.6% 3 -Month T -Bill 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 US TIPS Barclays MBS Barclays Corp IG 0.0% -5.0% 0.0% 5.0% 1 -Year Performance 8.2% J 6.5% 5.5% 6.3% 5.4% 3 -Month T -Bill 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 11.6% 3 �I 9.0% 10.0% 15.0% 20.0% 19.2% 15.1% 16.9% 16.1% 25.5% 30.0% Ti BOGDAHN GROUP The Market Environment Domestic Equity Style Index Performance Period Ended: December 31, 2010 ■ The 4th quarter once again favored growth -style equity investments over their value -based counterparts at each capitalization level of the Russell data series. Although growth represented the stronger style for the quarter, each of the value -based indices still managed to post double -digit returns. As a result of the strength demonstrated by both styles, the performance differential between the growth and value benchmarks for the quarter was less than 2% at each capitalization level. ■ While the previous quarter's large cap growth outperformance was dominated by the heavy weight and strength of the information technology sector, the 4th quarter's style -based performance was driven by the growth index's larger allocations to the strong performing industrial and consumer discretionary sectors. Both sectors outperformed the Russell 1000 index return of 11.2% for the quarter and collectively represented a weight of 27.9% of the growth benchmark versus a weight of 16.7% in the value index. ■ The advantage of growth over value in the 4th quarter also persisted at each capitalization level in the one -year style index results. This outperformance is particularly pronounced in the small cap segment where growth outperformed value by 4.6% for the year. The small cap growth benchmark's strength over the year is largely the result of its substantial 27.7% weight to the information technology sector and the sector's return of 34.4 %. 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth Quarter Performance - Russell Style Series 10.9% 11.6% 12.3% 10.5% 11.2% 11.8% 12.2% 13.1% 14.0% 15.4% 16.3% 17.1% 0.0% 5.0% 10.0% 15.0% 1 -Year Performance - Russell Style Series 20.0% 16.2% 16.9% 17.6% 15.5% 16.1% 16.7% 24.8% 25.5% 0 26.4% 24.5% 26.9% 29.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% / THE Source: Russell Investments 4 r BOGDAHN GROUP The Market Environment GICS Sector Performance & (Quarter -End Sector Weight) Period Ended: December 31, 2010 ■ Large cap stock performance was positive across the various Energy (11.7 %) Global Industry Classification Standard (GICS) sectors for the quarter. Although each sector was positive, there was a wide Materials (4.2 %) range of sector performance for the quarter. The mild 1.9% Industrials (11.2 %) result posted by the utilities sector for the quarter represented the weakest return and was a large contrast to the strong Consumer Disc (11.2 %> 21.9% result posted by the top performing energy sector. As Consumer Staples (9.7%) a result of this broad spectrum of sector results, only four of the ten GICS sectors actually managed to outperform the Health Care (11.2 %) Russell 1000 index return of 11.2 %. These four sectors Financials (16.1 %) (energy, materials, industrial and consumer discretionary) Info Technology (18.3 %) collectively represented a weight of 38.3% of the index at the end of the quarter. The financial and information technology Telecom Services (3.0 %) sectors also posted strong performance with returns of 10.9% Utilities (3.4 %) and 10.8% respectively, but each sector finished behind the Russell 1000 ■Quarter 01 -Year - 6.3% 4.4 5.0% 1.9% 6.5% 21.9% 21.4% 19.2% 24.3% 12.9% 27.0% . 13.2% 29.9 14.3% 10.9% 12.� 10.8% 11.1% 17.9% Russell 1000 index return for the quarter. 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% • Small cap stock sector performance was also strong during the 4th quarter with the Russell 2000 index posting a return of Energy (6.4 % ) 16.3 %. In fact, each of the 4th quarter's GICS sector returns for the Russell 2000 index outpaced the corresponding GICS Materials (5.7% sector performance of the Russell 1000 index. Like the Industrials (15.8 % ) Russell 1000, small cap sector performance for the quarter Consumer Disc (13.7 % ) was led by performance in the energy (29.8 %) and materials (21.5 % ) sectors. Consumer Staples (3.0 %) Health Care (12.4 %) • Thanks to the strength of the 4th quarter, each of the ten GICS sectors in both the Russell 1000 and Russell 2000 indices Financials (20.5% also posted positive performance over the trailing one -year Info Technology (18.5 % ) period. While all ten sectors of the Russell 2000 index posted Telecom Services (1.0 % ) double -digit returns for 2010, within the Russell 1000 index, only health care and utilities failed to return in excess of 10% Utilities (3.1 % ) fnr thin vaar With sarttnr rati rrns of _i In% and R _;% rasnarttivaly Source: Thompson Financial 5 Russell 2000 1 ■Quarter 01 -Year y 29.8% 33.3% 21.5% 34.0 19.6 29.7% 16.0% 32.0% 10.6% 19.7% 12.3% 17.2% 12.9 20.7 i 17.3% 34.4% 14.4% 11.5% �i 6.2% 17.5% 0. U% 10.0% 20.0% 30.0% 40.0% THE BOGDAHN GROUP The Market Environment Top 10 Index Weights & 4th Quarter Performance for the Russell 1000 & 2000 Period Ended December 31, 2010 Russell ... Exxon Mobil Corp Top 10 Symbol XOM Weighted Stocks Weight 2.82% M Return Sector 19.1% Energy Apple Inc. AAPL 2.27% 13.7% Information Technology Microsoft Corporation MSFT 1.62% 14.7% Information Technology IBM IBM 1.47% 9.9% Information Technology Procter & Gamble Cc PG 1.46% 8.1% Consumer Staples General Electric Cc GE 1.43% 13.4% Industrials Johnson & Johnson JNJ 1.40% 0.7% Health Care Chevron Corporation CVX 1.37% 13.6% Energy AT &T Inc. T 1.36% 4.2% Telecomm Service Jpmorgan Chase & Co. IL AMMIdNEFF JPM 1.26% 11.6% Financials Monster Worldwide Inc MWW 0.02% 82.3% Information Technology Massey Energy Company MEE 0.04% 73.2% Energy Fairchild Semi FCS 0.01% 66.1% Information Technology Sm Energy Co. SM 0.02% 57.5% Energy Walter Energy, Inc. WILT 0.04% 57.5% Materials Atmel Corporation ATML 0.04% 54.8% Information Technology Beckman Coulter, Inc. BEC 0.03% 54.7% Health Care Atlas Energy, Inc. ATLS 0.02% 53.5% Energy Gentex Corporation GNTX 0.03% 52.4% Consumer Discretionary Vishay Intertech Russell 000 Wilmington Trust VSH Bottom 10 Symbol WL 0.02% Performing Stocks Weight 0.00% 51.7% Return -51.7% Information Technology Sector Financials Capitol Federal CFFND 0.00% -50.1% Financials Clearwire Corporation CLWR 0.01% -36.3% Telecomm Service Amylin AMLN 0.02% -29.4% Health Care Thoratec Corporation THOR 0.01% -23.4% Health Care Apollo Group, Inc. APOL 0.04% 1 -23.1% Consumer Discretionary Lexmark Intl LXK 0.02% -22.0% Information Technology Equinix, Inc. EQIX 0.03% -20.6% Information Technology Human Genome HGSI 0.04% -19.8% Health Care Central European CETV 0.01% -18.4% Consumer Discretionary Source: Thompson Financial Russell ... Riverbed Top 10 Symbol RVBD Weighted Stocks Weight 0.34% Return 54.3% Sector Information Technology Tibco Software Inc. TIBX 0.29% 11.1% Information Technology Verifone Systems, Inc. PAY 0.27% 24.1% Information Technology Sothebys BID 0.26% 22.4% Consumer Discretionary Nordson Corporation NDSN 0.25% 25.0% Industrials Brigham Exploration Cc BEXP 0.25% 45.3% Energy Rackspace Hosting Inc RAX 0.24% 20.9% Information Technology Deckers Outdoor Corp DECK 0.23% 59.6% Consumer Discretionary Parametric PMTC 0.23% 15.3% Information Technology Dril -Quip, Inc. AL e „s Broadsoft, Inc. DRQ Top 10 Performing BSFT 0.22% Stocks 0.01% 25.1% ANIEL 175.8% 1 Energy Information Technology Intermune, Inc. ITMN 0.07% 167.3% Health Care Istar Financial Inc. SFI 0.04% 155.6% Financials Skilled Hlthcare SKH 0.01% 128.5% Health Care Cheniere Energy, Inc. LNG 0.02% 119.0% Energy Newcastle NCT 0.03% 116.1% Financials Twin Disc Incorporated TWIN 0.02% 114.7% Industrials Exelixis, Inc. EXEL 0.05% 109.4% Health Care Approach Resources Inc AREX 0.02% 106.6% Energy Western Refining, Inc. Russell 000 Great Atlantic WNR Bottom 10 Symbol GAP 0.04% Performing Stocks Weight 0.01% 101.9% Return -76.5% Energy Sector Consumer Staples Ambac Financial ABKFQ 0.01% -72.4% Financials Biodel, Inc. BIOD 0.00% -65.5% Health Care Alexza Pharma ALXA 0.01% -60.6% Health Care Green Bankshares, Inc. GRNB 0.00% -52.9% Financials Savient Pharma SVNT 0.09% 1 -51.3% Health Care Mela Sciences, Inc. MELA 0.01% -48.6% Health Care Princeton Review Inc REVU 0.00% -42.2% Consumer Discretionary Coldwater Creek Inc CWTR 0.02% -39.8% Consumer Discretionary Dex One Corporation DEXO 0.04% -39.3% Consumer Discretionary Tim BOGDAHN GROUP The Market Environment International and Regional Market Index Performance (# Countries) Period Ended: December 31, 2010 Quarter Performance I MUSD El Local Currency ■ In U.S. Dollars (USD), the 4t" quarter's performance for the various international indices was positive. In addition, outside of Europe, international holdings continued to benefit from the general weakness of the USD. Despite these strong index results, both developed and emerging international equity market performance fell short of their domestic equity index counterparts for the quarter. The 4t" quarter's results for the MSCI- ACWxUS index show wide performance bands for both the GICS sector (2.2% for telecommunications to 15.7% for materials) and individual country (-10.1% for Greece to 17.4% for Taiwan) returns. This substantial return variability provided an opportunity for active international managers to show substantial positive or negative results relative to the index through sector and /or country portfolio positioning. ■ Over the one -year period, the increasing role of emerging market economies in the global recovery is evident in the AC World x US (44) strong 19.2% USD return of the Emerging Market index. In contrast to this emerging market strength, the ongoing WORLD x US (23) sovereign credit concerns in Europe are clearly visible in the EAFE (22) relatively weak 4.5% one -year USD return of the developed market Europe index. The positive return of this 16 country Europe (16) European index masks the negative returns of each of the five "PIIGS" countries (Portugal, Italy, Ireland, Greece & Spain). Pacific (s> These countries posted disappointing annual returns that Emerging Mkt (21) ranged from -10.5% for Portugal to -44.7% for Greece. It's also not surprising that these five countries represented the EM Europe (5) weakest performance in the 44 country MSCI- ACWxUS index. EM Asia (8) AC World x US (44) WORLD x US (23) EAFE (22) Europe (16) Pacific (5) Emerging Mkt (21) EM Europe (5) EM Asia (8) EM Latin Amer (5) EM Latin Amer (5) 7.3% 5.9% 7.2 % 6.0% 6.7% 5.7% 4.6% 5.0% 10.7% 6.9% 7.4% 5.8% 8.5% 9.9% 7.0% 5.5% 6.1% 4.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 1 -Year Performance 11.6% 8.1% 9.4% 6.2% 8.2 % 5.3% 4.5% 7.5% 2.2% 9.2% ❑ USD ❑ Local Currency J 16.1% 19.2% 4.4% 17.1 18.9% 19.4% 15.0% 14.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% THE Source: MSCI Capital Markets 7 r , BOGDAHN GROUP The Market Environment U.S. Dollar International Index Attribution & Country Detail Period Ended December 31, 2010 Source: MSCI Capital Markets & Franklin/Templeton Japan En ding Weight 4th Q tr Return 1-Year Return Energy 7.9% 10.2% 1.0% Materials 11.5% 17.9% 18.0% Industrials 12.7% 10.6% 20.8% Consumer Discretionary 10.5% 9.1% 20.1% Consumer Staples 10.0% 3.9% 12.8% Health Care 8.2% 2.6% 1.9% Financials 23.8% 1.5% -1.2% Information Technology 5.0% 10.8% 14.9% Telecommunication Services 5.4% 2.2% 6.7% Utilities T otal 5.0% 11 1' 2.6% -4.1% 23.2% Italy 2.6% 1.8% Source: MSCI Capital Markets & Franklin/Templeton Japan En ding Weight 4th Q tr Return 1-Year Return Energy 10.9% 11.6% 6.4% Materials 13.2% 15.7% 21.9% Industrials 10.8% 9.9% 22.2% Consumer Discretionary 9.1% 8.6% 22.3% Consumer Staples 8.6% 4.1% 15.7% Health Care 5.8% 2.7% 3.6% Financials 24.6% 2.8% 4.3% Information Technology 6.7% 12.3% 14.8% Telecommunication Services 5.7% 2.2% 10.1% Utilities T otal 4.3% 11 1' 2.4% -1.6% 23.2% Italy 2.6% 1.8% Source: MSCI Capital Markets & Franklin/Templeton Japan 22.1% 15.0% 12.1% 15.6% United Kingdom 21.3% 14.5% 6.1% 8.8% France 9.5% 6.5% 1.9% -3.2% Australia 8.8% 6.0% 9.8% 14.7% Germany 8.2% 5.6% 9.5% 9.3% Switzerland 8.0% 5.5% 7.5% 12.9% Spain 3.3% 2.2% -8.4% -21.1% Sweden 3.2% 2.2% 7.4% 34.8% Hong Kong 2.9% 1.9% 4.8% 23.2% Italy 2.6% 1.8% -2.3% -14.1% Netherlands 2.5% 1.7% 1.9% 2.2% Singapore Free 1.7% 1.2% 6.8% 22.2% Finland 1.1% 0.8% 5.9% 11.6% Denmark 1.0% 0.7% 7.1% 31.1% Belgium 0.9% 0.6% -3.6% 0.2% Norway 0.8% 0.6% 11.8% 11.8% Israel 0.8% 0.5% 4.8% 5.0% Austria 0.3% 0.2% 11.7% 10.7% Portugal 0.3% 1 0.2% 1 -0.6% 1 -10.5% Greece 0.2% 0.2% -10.1% - 44.7% Ireland 0.2% 0.2% 6.5% - 17.7% New Zealand Total EAFE Countries 0.1 % 1 00 . 0% 0.1% r' 11.5% 9.2% Canada Total Developed Countries 8.0% 75.9% 12.3% 7.2% 9.4% Chma 4.2% 0.7% 4.8% Brazil 3.8% 3.5% 6.8% Korea 3.3% 12.8% 27.2% Taiwan 2.8% 17.4% 22.7% India 1.9% 2.2% 20.9% South Africa 1.9% 13.1% 34.2% Russia 1.5% 16.5% 19.4% Mexico 1.1% 16.7% 27.6% Malaysia 0.7% 5.5% 37.0% Indonesia 0.6% -0.6% 34.6% Thailand 0.4% 5.9% 56.3% Chile 0.4% 5.9% 44.8% Poland 0.4% 4.5% 15.9% Turkey 0.4% -7.9% 21.2% Colombia 0.2% -5.2% 43.4% Peru 0.2% 17.1% 53.3% Philippines 0.1% -3.5% 35.5% Egypt 0.1% 4.9% 12.4% Hungary 0.1% -9.4% -9.6% Czech Republic 0.1% -3.5% -1.7% Morocco Total Emerging Countries Total ACWIxUS Countries 0.0% 24.1% _�% 1 00 . 0% 4.0% lnff�- 15.3% Ti !� BOGDAHN GROUP The Market Environment Domestic Credit Sector & Broad Market Maturity Performance Period Ended: December 31, 2010 ■ Using the Barclays Aggregate index as a proxy for the domestic broad fixed income market (- 1.3 %), the quarter's rising yield environment resulted in negative performance for most diversified, investment -grade bond investors. While individual portfolio results for the quarter will vary by strategy, in general, portfolios that sought the relative safety of shorter maturities (0.4 %) or the yield advantage of lower quality debt (3.1 %) will likely post a performance advantage relative to the Barclays Aggregate benchmark. In addition, bond managers that over - allocated a portfolio to the mortgage sector, which posted a return of 0.3% for the quarter, had the potential to add value relative to the broad index. ■ The trailing one -year returns for the various broad and sector -based bond indices were largely strong. Despite the pull -back that occurred during the 4t" quarter, the calendar year's solid fixed income performance reflects the collective impact of a general period of falling interest rates and an increased confidence in the sustainability of the economic recovery, which narrowed credit spreads. The falling rate environment had the largest impact on the longer -dated indices, while lower quality credit indices benefited most from the increased economic confidence. Source: Bank of America /Merrill Lynch Index System AAA AA A BBB <BBB Govt TIPS Mort Quarter Performance -2.4% -1.6% -1.9% -1.2% 3.1% -2.4% -0.9% 0.3% G /M /C =Broad Market (Government + Mortgage + Corpor e) 0.4% -0.1% -5.5% -0.8% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 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 TIPS Mort 1 -Year Performance 7.9% 7.7% 9.1% 10.9% 5.6% 15.2% 6.3% 5.7% 4.0% 4.8% 5.9% 10.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 1 -3yr G /M /C 1 -5yr G /M /C 1 -10yr G /M /C 10 +yrG /M /C 0 /7* Tim, 1 BOGDAHN GROUP The Market Environment Market Rate & Yield Curve Comparison Period Ended: December 31, 2010 ■ In addition to keeping the fed funds rate at 0.0% to 0.25% for the 24th consecutive month, the Fed also committed to the purchase of an additional $600 billion of Treasury Securities in their second round of "quantitative easing ". The Fed's additional commitment of Treasury purchases during the quarter was a classic case of "buy on the rumor, sell on the news" for bond market investors. Yields remained mostly "range- bound" throughout October as investors tried to anticipate the size, scope and form of the "quantitative easing" that the Fed would announce at their November meeting. However, subsequent to the $600 billion Treasury purchase commitment by the Fed, yields for longer- maturities moved steadily higher through the end of the year. This yield curve movement resulted in higher Treasury yields, a narrowing of the BAA /10yr yield spread and an increase in inflation expectations, which is reflected in 10 year TIPS yields. ■ The increase in yields that defined the 4th quarter's fixed income performance was most pronounced for longer maturities ( >5 years). These differing maturity movements resulted in a "steepening" of the yield curve. At the close of 2010, Treasury yields for maturities in the 5 to 30 -year maturity range had increased by an average of 74 basis points (bps) since the end of September. While not as extreme as the longer -dated yield shifts, the yield increase for maturities in the 1 to 3 -year range averaged 20 bps during the quarter. Thanks to the Fed's ongoing commitment to keep the fed funds rate low for the foreseeable future, the shortest maturities on the curve actually fell. The yields on 1 and 3 -month Treasury issues fell by 7 and 4 bps, respectively, since the end of September. Despite the jump in yields during the 4th quarter, the 10 -year Treasury's 2010 year -end yield of 3.30% was still well below the 2009 year -end yield of 3.85 %. 1 -Year Trailing Market Rates Fed Funds Rate TED Spread 3 -Month Libor BAA/10vr Spread 10vr Treasury 10vr TIPS 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 _F=E Sep -09 Dec -09 Mar -10 Jun -10 Sep -10 Dec -10 Treasury Yield Curve 0 12/31/2009 — 6/30/2010 o 9/30/2010 - o -12/31 /2010 O O C C O C 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Tim Source: Mortgage- X.com, US Department of Treasury & St. Louis Fed 10 ( BOGDAHN GROUP The Market Environment A Term -Based Asset Class Review 5 -Year Annualized Returns at 5 -Year Historical Intervals Russell Top 200 Russell 3000 Russell 1000 Russell MC Russell 2500 Russell 2000 MSCI- ACWIxUS MSCI -EAFE MSCI -EM Barclays Aggregate Barclays TIPS ML Global Broad Market Russell Top 200 Russell 3000 Russell 1000 Russell MC Russell 2500 Russell 2000 MSCI- ACWIxUS MSCI -EAFE MSCI -EM Barclays Aggregate Barclays TIPS ML Global Broad Market -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Russell Top 200 Russell 3000 Russell 1000 Russell MC Russell 2500 Russell 2000 MSCI- ACWIxUS MSCI -EAFE MSCI -EM Barclays Aggregate Barclays TIPS ML Global Broad Market 19.1% ended 181% 16.7% 14.0% 10.3% 6.7% -4.2% 7.4% 12.3% 6.5% N/A N/A 5 -years ended 10 -years ago 10.8% 7.1% 7.5% 12.2% 6.9% N/A N/A 5 -years ended 15 -years ago - 5.3% -. C , Russell Top 200 Russell 3000 Russell 1000 Russell MC Russell 2500 Russell 2000 MSCI- ACWIxUS MSCI -EAFE MSCI -EM Barclays Aggregate Barclays TIPS ML Global Broad Market -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Russell Top 200 Russell 3000 Russell 1000 Russell MC Russell 2500 Russell 2000 MSCI- ACWIxUS MSCI -EAFE MSCI -EM Barclays Aggregate Barclays TIPS ML Global Broad Market 19.1% 17.4°/ 181% 16.7% 14.0% 10.3% 6.7% -4.2% 7.4% 12.3% 6.5% N/A N/A 5 -years ended 10 -years ago -5.0% Russell Top 200 Russell 3000 Russell 1000 Russell MC Russell 2500 Russell 2000 MSCI- ACWIxUS MSCI -EAFE MSCI -EM Barclays Aggregate Barclays TIPS ML Global Broad Market -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% -5.0% 0.0% ❑ Best Performing ■ Worst Performing Source: Barclays Capital, MSCI Capital Markets, Russell Investments & Zephyr 11 0.0% 5.0% 10.0% 15.0% 20.0% 8. 9.5% 9.5% 12.3% 12.1% 10.8% 7.1% 7.5% 12.2% 6.9% N/A N/A 5 -years ended 15 -years ago 17* Tim, 1 BOGDAHN GROUP The Market Environment Historical Annualized Performance Over Various Investor Holding Periods Based on S &P 500 Annual Returns 1926 Through 2010 Term of Investment 1926 3 m 0 CD N_ 3 fD 7 IIm IIm Count 55 54 166 261 1,855 1,264 Percentage 1.50% 1.48% 4.54% 7.14% 50.75% 34.58% ' -5% - 0% 0% - 5% 5% - 8% 8% - 12% Source: Ibbotson Year Book & Zephyr 12 Boxes indicate the 20 -year annualized holding period returns for investors beginning in 1926 THE BOGDAHN GROUP Page Intentionally Left Blank THE 13 r� BOGDAHN G xouP Winter Springs General Employees General Plan and Trust December 31, 2010 September 30, 2010 : 520,946,948 December 31, 2010 : 522,665,850 Segments Market Value Allocation Segments Market Value Allocation (S) (%) (S) (%) ■ Domestic Equity 9,606,937 45.9 ■ Domestic Equity 11,101,252 49.0 ❑ International Equity 3,127,979 14.9 ❑ International Equity 3,585,512 15.8 ❑ Fixed Income 4,954,005 23.7 © Fixed Income 5,215,182 23.0 ■ Real Estate 628,316 3.0 ■ Real Estate 1,994,043 8.8 ■ Cash Equivalent 2,629,711 12.6 ■ Cash Equivalent 769,862 3.4 THE 14 BO GDA H N �`� GROUP Winter Springs General Employees General Plan and Trust December 31, 2010 September 30, 2010 : $20,946,948 December 31, 2010 : $22,665,850 THE 15 ( � BO GDA H N ``-'�, GROUP Market Value Allocation Market Value Allocation ($) ( %) ($) ( %) ■ Dalton, Greiner, Hartman, Maher & Co. 5,886,361 26.0 ■ Dalton, Greiner, Hartman, Maher & Co. 5,209,926 24.9 ■ Lateef Asset Mgmt.Equity 5,728,785 25.3 ■ Lateef Asset Mgmt.Equity 5,015,554 23.9 ■ Galliard Core Fixed Income 4,209,236 18.6 ■ Galliard Core Fixed Income 3,995,403 19.1 ■ RBC Global (Voyageur) 3,585,512 15.8 ■ RBC Global (Voyageur) 3,127,979 14.9 ■ Intercontinental 1,351,569 6.0 ■ Receipt & Disbursement 1,958,745 9.4 ❑ Galliard TIPS 1,024,397 4.5 ❑ Galliard TIPS 978,912 4.7 ❑ American Core Realty Fund 642,474 2.8 ❑ American Core Realty Fund 628,316 3.0 ■ Receipt & Disbursement 193,800 0.9 ■ Galliard Cash 32,112 0.2 ■ Galliard Cash 43,716 0.2 THE 15 ( � BO GDA H N ``-'�, GROUP Winter Springs General Employees General Plan and Trust Asset Allocation vs. Target Allocation As of December 31, 2010 vecemner si, zuiu Domestic Large Cap Value Equity Domestic Broad Cap Growth Equity Foreign Equity Broad Market Fixed Income TIPS Receipt & Disbursement Galliard Cash Real Estate 1.0% 0.3% 0.8% -1.4% -0.5% 0.9% 0.2% -1.2% -10.0% -8.0 -4.0% 0.0% 4.0% 8.0 10.0% Allocation Differences December 31, 2010 M THE [ � BO GDA H N `= GROUP Market Value Allocation Target Domestic Large Cap Value Equity 5,886,361 26.0 25.0 Domestic Broad Cap Growth Equity 5,728,785 25.3 25.0 Foreign Equity 3,585,512 15.8 15.0 Broad Market Fixed Income 4,209,236 18.6 20.0 TIPS 1,024,397 4.5 5.0 Receipt & Disbursement 193,800 0.9 - Galliard Cash 43,716 0.2 - Real Estate 1,994,043 8.8 10.0 Total Fund 22,665,850 100.0 100.0 M THE [ � BO GDA H N `= GROUP Winter Springs General Employees General Plan and Trust Asset Allocation History As of December 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 Core Realty Fund Intercontinental Receipt & Disbursement Galliard Cash Total Fund Portfolio Asset Allocation History by Segment 1 0 0 z u 0 d 11,615,146 51.25 5,886,361 25.97 5,728,785 25.27 3,585,512 15.82 3,585,512 15.82 5,233,634 23.09 4,209,236 18.57 1,024,397 4.52 642,474 2.83 1,351,569 5.96 193,800 0.86 43,716 0.19 22.665.850 100.00 10,225,481 48.82 5,209,926 24.87 5,015,554 23.94 3,127,979 14.93 3,127,979 14.93 4,974,315 23.75 3,995,403 19.07 978,912 4.67 628,316 3.00 1,958,745 9.35 32,112 0.15 20.946.948 100.00 8,931,968 48.80 4,589,911 25.08 4,342,057 23.73 2,580,041 14.10 2,580,041 14.10 6,019,062 32.89 5,072,689 27.72 946,372 5.17 607,888 3.32 141,924 0.78 20,502 0.11 18.301.384 100.00 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 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Domestic Equity International Equity Fixed Income RealEstate Cash Equivalent THE 17 [ � BOGDAHN ``� GROUP Winter Springs General Employees General Plan and Trust Financial Reconciliation Quarter to Date 1 Quarter Ending December 31, 2010 otal Domestic Equity 10,225,481 470,000 - - - 22,309 -1,246 38,031 905,189 11,615,146 ateef Asset Mgmt.Equity 5,015,554 235,000 - - - 12,539 -591 14,586 476,774 5,728,785 Salton, Greiner, Hartman, Maher & Co. 5,209,926 235,000 - - -9,770 -655 23,445 428,415 5,886,361 otal International Equity 3,127,979 147,917 - - -6,917 -2,406 - 318,939 3,585,512 BC Global (Voyageur) 3,127,979 147,917 - - -6,917 -2,406 - 318,939 3,585,512 otal Fixed Income 4,974,315 305,500 - - -367 -121 3,716 - 49,410 5,233,634 alliard Core Fixed Income 3,995,403 258,500 - - - - - - 44,667 4,209,236 alliard TIPS 978,912 47,000 - - -367 -121 3,716 -4,742 1,024,397 merican Core Realty Fund 628,316 - - -7,487 -1,668 - 7,487 15,826 642,474 itercontinental - 1,300,000 - - -3,134 - 13,020 41,683 1,351,569 eceipt & Disbursement 1,958,745 - 2,237,517 733,366 - 254,492 - -6,318 17 - 193,800 alliard Cash 32,112 14,100 - - -2,497 - 2 - 43,716 otal Fund Portfolio 20,946,948 - 733,366 - 261,979 - 36,892 - 10,091 62,272 1,232,227 22,665,850 THE 18 [ � BOGDAHN `= GROUP Winter Springs General Employees General Plan and Trust Financial Reconciliation Fiscal Year to Date October 1, 2010 To December 31, 2010 otal Domestic Equity 10,225,481 470,000 - - - 22,309 -1,246 38,031 905,189 11,615,146 ateef Asset Mgmt.Equity 5,015,554 235,000 - - - 12,539 -591 14,586 476,774 5,728,785 Salton, Greiner, Hartman, Maher & Co. 5,209,926 235,000 - - -9,770 -655 23,445 428,415 5,886,361 otal International Equity 3,127,979 147,917 - - -6,917 -2,406 - 318,939 3,585,512 BC Global (Voyageur) 3,127,979 147,917 - - -6,917 -2,406 - 318,939 3,585,512 otal Fixed Income 4,974,315 305,500 - - -367 -121 3,716 - 49,410 5,233,634 alliard Core Fixed Income 3,995,403 258,500 - - - - - - 44,667 4,209,236 alliard TIPS 978,912 47,000 - - -367 -121 3,716 -4,742 1,024,397 merican Core Realty Fund 628,316 - - -7,487 -1,668 - 7,487 15,826 642,474 itercontinental - 1,300,000 - - -3,134 - 13,020 41,683 1,351,569 eceipt & Disbursement 1,958,745 - 2,237,517 733,366 - 254,492 - -6,318 17 - 193,800 alliard Cash 32,112 14,100 - - -2,497 - 2 - 43,716 otal Fund Portfolio 20,946,948 - 733,366 - 261,979 - 36,892 - 10,091 62,272 1,232,227 22,665,850 THE 19 [ � BO GDA H N `= GROUP Winter Springs General Employees General Plan and Trust Comparative Performance Trailing Returns As of December 31, 2010 Total Fund (Net) 5.78 (65) 5.78 (65) 13.61 (33) 0.18 (74) 3.26 (89) 3.80 N/A 11/01/2000 Total Fund Policy 7.11 (18) 7.11 (18) 13.05 (42) 1.30 (41) 4.42 (55) 3.18 N/A Difference -1.33 -1.33 0.56 -1.12 -1.16 0.62 All Public Plans -Total Fund Median 6.19 6.19 12.72 1.07 4.49 N/A Total Fund (New Mgrs) (Net) 5.93 (58) 5.93 (58) 13.51 (34) 0.13 (75) N/A -0.57 N/A 10/01/2007 Total Fund Policy 7.11 (18) 7.11 (18) 13.05 (42) 1.30 (41) 4.42 (55) 0.93 N/A Difference -1.18 -1.18 0.46 -1.17 N/A -1.50 All Public Plans -Total Fund Median 6.19 6.19 12.72 1.07 4.49 N/A Total Fund (Gross) 6.12 (53) 6.12 (53) 14.60 (18) 0.91 (55) 3.98 (71) 4.52 N/A 11/01/2000 Total Fund Policy 7.11 (18) 7.11 (18) 13.05 (42) 1.30 (41) 4.42 (55) 3.18 N/A Difference -0.99 -0.99 1.55 -0.39 -0.44 1.34 All Public Plans -Total Fund Median 6.19 6.19 12.72 1.07 4.49 N/A Total Fund (New Mgrs) (Gross) 6.12 (53) 6.12 (53) 14.27 (23) 0.79 (60) N/A 0.04 N/A 10/01/2007 Total Fund Policy 7.11 (18) 7.11 (18) 13.05 (42) 1.30 (41) 4.42 (55) 0.93 N/A Difference -0.99 -0.99 1.22 -0.51 N/A -0.89 All Public Plans -Total Fund Median 6.19 6.19 12.72 1.07 4.49 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 THE hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. [ �� B OGDA111V \`� GROUP Winter Springs General Employees General Plan and Trust Comparative Performance Trailing Returns As of December 31, 2010 Total Equity Total Equity Policy Total Domestic Equity Total Domestic Equity Policy Difference US Core/LC Equity (SA +CF) Median Total International Equity MSCI EAFE Index Difference Intl Active Value Equity (SA +CF) Median Total Fixed Income Total Fixed Policy Total Real Estate NCREIF Fund Index -Open End Diversified Core (EW) 9.20 9.20 17.78 -1.47 3.08 3.59 01/01/2001 10.47 10.47 14.98 -3.18 1.78 -1.27 -1.27 2.80 1.71 0.74 1.81 8.99 (91) 8.99 (91) 16.95 (21) -1.20 (32) 3.13 (44) 3.19 (24) 11/01/2000 11.59 (25) 11.59 (25) 16.93 (21) -2.38 (50) 2.59 (57) 0.77 (75) -2.60 -2.60 0.02 1.18 0.54 2.42 10.87 10.87 14.85 -2.39 2.90 1.62 9.87 (6) 9.87 (6) 20.85 (3) -2.61 (35) 3.29 (71) 4.86 (94) 11/01/2000 6.65 (56) 6.65 (56) 8.21 (64) -6.55 (72) 2.94 (72) 3.84 (100) 3.22 3.22 12.64 3.94 0.35 1.02 6.76 6.76 11.09 -3.92 4.57 7.80 -0.85 -0.85 7.23 5.37 5.34 5.97 11/01/2000 -0.75 -0.75 6.15 5.82 5.74 6.07 -0.10 -0.10 1.08 -0.45 -0.40 -0.10 4.05 4.05 11.58 -9.36 N/A -8.24 10/01/2007 4.99 4.99 16.36 -9.73 -0.16 -8.43 -0.94 -0.94 -4.78 0.37 N/A 0.19 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 THE hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to 1 ew policy. See benchmark history for details. BOGDAHi V f �`� GROUP Winter Springs General Employees General Plan and Trust Comparative Performance Trailing Returns As of December 31, 2010 Dalton, Greiner, Hartman, Maher & Co. 8.45 (88) 8.45 (88) 18.03 (45) N/A N/A 31.22 (38) 05/01/2009 Russell 3000 Value Index 10.92 (57) 10.92 (57) 16.23 (75) -3.91 (92) 1.45 (87) 28.01 (71) Difference -2.47 -2.47 1.80 N/A N/A 3.21 US All Cap Value Equity (SA +CF) Median 11.33 11.33 17.88 0.30 4.34 29.81 Lateef Asset Mgmt.Equity 9.55 (86) 9.55 (86) 15.87 (53) 0.89 (18) N/A 1.40 (13) 10/01/2007 Russell 1000 Growth Index 11.83 (51) 11.83 (51) 16.71 (46) -0.47 (34) 3.75 (48) -0.67 (38) Difference -2.28 -2.28 -0.84 1.36 N/A 2.07 US Growth/LC Equity (SA +CF) Median 11.85 11.85 16.11 -1.30 3.68 -1.21 RBC Global (Voyageur) 9.87 (6) 9.87 (6) 20.85 (3) -2.61 (35) N/A N/A 10/01/2007 MSCI EAFE Index 6.65 (56) 6.65 (56) 8.21 (64) -6.55 (72) 2.94 (72) -6.56 (79) Difference 3.22 3.22 12.64 3.94 N/A N/A Intl Active Value Equity (SA +CF) Median 6.76 6.76 11.09 -3.92 4.57 -4.18 Galliard Core Fixed Income -1.05 (43) -1.05 (43) 7.66 (15) 5.50 (82) N/A 5.65 (87) 10/01/2007 Barclays Capital Intermediate Aggregate -0.75 (25) -0.75 (25) 6.15 (66) 5.82 (75) 5.81 (71) 6.29 (70) Difference -0.30 -0.30 1.51 -0.32 N/A -0.64 US Int Fixed Income (SA +CF) Median -1.10 -1.10 6.46 6.25 6.10 6.67 Galliard TIPS -0.05 (20) -0.05 (20) 4.79 (95) 4.59 (97) N/A 5.79 (94) 10/01/2007 Barclays Capital U.S. TIPS -0.65 (35) -0.65 (35) 6.31 (50) 4.97 (72) 5.35 (82) 6.15 (70) Difference 0.60 0.60 -1.52 -0.38 N/A -0.36 US TIPS (SA +CF) Median -0.73 -0.73 6.30 5.26 5.62 6.41 American Core Realty Fund 3.71 N/A 3.71 N/A 11.23 N/A -9.46 N/A N/A -8.33 N/A 10/01/2007 American Core Realty Policy 4.99 N/A 4.99 N/A 13.51 N/A -4.07 N/A N/A -2.82 N/A Difference -1.28 -1.28 -2.28 -5.39 N/A -5.51 US Private Real Estate -Open End (SA +CF) Median N/A N/A N/A N/A N/A N/A Intercontinental 4.51 N/A 4.51 N/A N/A N/A N/A 4.51 N/A 10/01/2010 NCREIF Fund Index -Open End Diversified Core (EW) 4.99 N/A 4.99 N/A 16.36 N/A -9.73 N/A -0.16 N/A 4.99 N/A Difference -0.48 -0.48 N/A N/A N/A -0.48 US Private Real Estate -Oven End (SA +CF) Median N/A N/A N/A N/A N/A 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 THE hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to n 22 w policy. See benchmark history for details. �� BOGDI�HN Q--* GROUP Winter Springs General Employees General Plan and Trust Comparative Performance Fiscal Year Returns As of December 31, 2010 otal Fund (Net) 5.78 (65) 0.73 (59) -16.82 (91) 13.03 (74) 7.89 (65) 11.07 (66) 12.18 (35) otal Fund Policy 7.11 (18) 0.33 (64) -12.11 (31) 11.97 (88) 9.55 (33) 10.76 (69) 11.65 (46) Difference -1.33 0.40 -4.71 1.06 -1.66 0.31 0.53 11 Public Plans -Total Fund Median 6.19 1.30 -13.67 14.40 8.65 12.46 11.14 otal Fund (New Mgrs) (Net) 5.93 (58) 0.68 (59) -16.82 (91) N/A N/A N/A N/A otal Fund Policy 7.11 (18) 0.33 (64) -12.11 (31) 11.97 (88) 9.55 (33) 10.76 (69) 11.65 (46) Difference -1.18 0.35 -4.71 N/A N/A N/A N/A 11 Public Plans -Total Fund Median 6.19 1.30 -13.67 14.40 8.65 12.46 11.14 otal Fund (Gross) 6.12 (53) 1.44 (48) -16.46 (90) 13.92 (59) 8.62 (51) 11.82 (60) 13.05 (23) otal Fund Policy 7.11 (18) 0.33 (64) -12.11 (31) 11.97 (88) 9.55 (33) 10.76 (69) 11.65 (46) Difference -0.99 1.11 -4.35 1.95 -0.93 1.06 1.40 11 Public Plans -Total Fund Median 6.19 1.30 -13.67 14.40 8.65 12.46 11.14 otal Fund (New Mgrs) (Gross) 6.12 (53) 1.39 (49) -16.46 (90) N/A N/A N/A N/A otal Fund Policy 7.11 (18) 0.33 (64) -12.11 (31) 11.97 (88) 9.55 (33) 10.76 (69) 11.65 (46) Difference -0.99 1.06 -4.35 N/A N/A N/A N/A 11 Public Plans -Total Fund Median 6.19 1.30 -13.67 14.40 8.65 12.46 11.14 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 THE hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to 3 w policy. See benchmark history for details. [ �� BOGDAHN \`� GROUP Winter Springs General Employees General Plan and Trust Comparative Performance Fiscal Year Returns As of December 31, 2010 otal Equity otal Equity Policy otal Domestic Equity otal Domestic Equity Policy Difference S Core/Large Cap Equity (SA +CF) Median otal International Equity ISCI EAFE Index Difference iternational Active Value Equity (SA +CF) Median otal Fixed Income otal Fixed Policy 9.20 1.27 8.99 (91) 11.59 (25) -2.60 10.87 9.87 (6) 6.65 (56) 3.22 6.76 -0.85 -0.75 -0.10 -1.09 -25.61 18.52 -6.91 14.30 16.44 5.82 -3.63 2.08 -4.29 (28) -21.66 (57) 17.58 (36) -6.91 (61) -2198 (66) 16.44 (58) 2.62 0.32 1.14 -6.43 -21.11 16.67 11.87 (20) -39.55 (100) 23.63 (59) 3.80 (58) -30.13 (75) 25.38 (45) 8.07 -9.42 -1.75 4.88 -27.04 24.45 10.53 0.64 4.96 9.69 4.16 5.33 0.84 -3.52 -0.37 10.83 15.40 17.60 12.51 14.30 15.14 -1.68 1.10 2.46 9.29 (75) 13.77 (59) 16.77 (20) 10.79 (52) 12.25 (80) 13.87 (59) -1.50 1.52 2.90 10.82 14.32 14.25 19.84 (69) 26.83 (56) 22.94 (76) 19.65 (71) 26.32 (64) 22.52 (77) 0.19 0.51 0.42 20.96 27.15 25.40 3.27 2.81 2.68 3.55 2.80 3.68 -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 THE hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to n 24 w policy. See benchmark history for details. [ �� BOGDAHN \`� GROUP Winter Springs General Employees General Plan and Trust Comparative Performance Fiscal Year Returns As of December 31, 2010 ton, Greiner, Hartman, Maher & Co. ,sell 3000 Value Index Ference All Cap Value Equity (SA +CF) Median eef Asset Mgmt.Equity ,sell 1000 Growth Index Ference Growth/Large Cap Equity (SA +CF) Median C Global (Voyageur) Cl EAFE Index Ference xnational Active Value Equity (SA +CF) Median liard Core Fixed Income clays Capital Intermediate Aggregate Ference Intermediate Fixed Income (SA +CF) Median liard TIPS clays Capital U.S. TIPS Ference TIPS (SA +CF) Median erican Core Realty Fund erican Core Realty Policy Ference Private Real Estate -Open End (SA +CF) Median REIF Fund Index -Open End Diversified Core (EW) Ference Private Real Estate -Open End (SA +CF) Median 8.45 (88) N/A N/A 1092 (57) 10.79 (94) -22.70 (70) -2.47 (59) N/A (54) N/A 11.33 -3.56 -20.17 9.55 (86) 0.53 (19) -15.13 (15) 11.83 (51) 1.85 (35) -20.88 (52) -2.28 2.38 5.75 (55) 11.85 (59) -3.14 (71) -20.56 (74) 9.87 (6) 11.87 (20) N/A 6.65 (56) 3.80 (58) -30.13 (75) 3.22 8.07 N/A 6.76 4.88 -27.04 -1.05 (43) 12.08 (39) -1.68 (95) -0.75 (25) 9.69 (81) 4.16 (35) -0.30 2.39 -5.84 -1.10 11.45 3.26 -0.05 (20) 3.97 (88) 7.72 (17) -0.65 (35) 5.67 (70) 6.20 (62) 0.60 (42) -1.70 (27) 1.52 -0.73 6.28 6.50 3.71 N/A -32.42 (41) 4.72 (39) 4.99 N/A -22.09 (9) 5.27 (28) -1.28 -10.33 -0.55 (62) N/A (82) -33.38 (54) 3.47 (40) 4.51 N/A N/A N/A 4.99 N/A -35.19 (55) 3.18 (52) -0.48 N/A N/A N/A -33.38 3.47 N/A N/A N/A N/A 13.73 (70) 14.55 (11) 16.78 (59) 20.89 (54) N/A N/A N/A N/A 16.37 10.43 18.70 21.13 N/A N/A N/A N/A 19.35 (55) 6.04 (59) 11.60 (71) 7.51 (74) N/A N/A N/A N/A 19.92 6.79 14.04 10.05 N/A N/A N/A N/A 25.38 (45) 19.65 (71) 26.32 (64) 22.52 (77) N/A N/A N/A N/A 24.45 20.96 27.15 25.40 N/A N/A N/A N/A 5.33 (67) 3.84 (58) 2.23 (42) 3.39 (27) N/A N/A N/A N/A 5.47 3.90 2.09 2.87 N/A N/A N/A N/A 497 (62) 1.91 (82) 5.32 (54) 7.52 (40) N/A N/A N/A N/A 5.06 2.08 5.37 7.50 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 18.34 17.92 19.86 12.50 N/A N/A N/A N/A 18.21 (54) 17.45 (53) 19.66 (58) 11.75 (58) N/A N/A N/A N/A 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 THE hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to 5 w policy. See benchmark history for details. �� BOGDI�HN Q-o GROUP Winter Springs General Employees General Plan and Trust Total Fund (Gross) December 31, 2010 Financial Reconciliation 1 Quarter Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec.// Deprec. As of 9/30/2010 12/31/2010 Total Fund (Gross) 20,947 - 733 -262 -37 -10 62 1,232 22,666 Financial Reconciliation O II' o December 3 4 5 $80.0 Market Value Net Quarter Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec.// Deprec. As of 9/30/2010 12/31/2010 Total Fund (Gross) 20,947 733 -262 -37 -10 62 1,232 22,666 Peer Group Public Plans-Total Plans-Total Fund Cummulative Performance ■ Total Fund (Gross) $160.0 6.12 (53) $1562 40.00 30.00 20.00 10.00 c i 7 Z 0.00 -10.00 -2000 $143.0 $140.0 $120.0 $100.0 1 Oct -2010 1 2 3 4 5 $80.0 Quarter To Year Years Years Years Years Dec -2010 ■ Total Fund (Gross) 6.12 (53) 6.12 (53) 14.60 (18) 19.02 (13) 0.91 (55) 2.22 (64) 3.98 (71) • Total Fund Policy 7.11 (18) 7.11 (18) 13.05 (42) 15.57 (63) 1.30 (41) 2.51 (55) 4.42 (55) $60.0 12/00 12/02 12/04 12/06 12/08 12/10 Median 6.19 6.19 12.72 16.33 1.07 2.68 4.49 -Total Fund (Gross) -Total Fund Policy Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep -2010 Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Total Fund (Gross) 10.11 (12) -6.15 (65) 4.50 (14) 3.45 (49) 11.53 (48) 11.74 (30) Total Fund Policy 9.08 (37) -6.63 (79) 3.63 (66) 3.40 (52) 10.55 (66) 10.13 (57) All Public Plans -Total Fund Median 8.73 -5.83 3.83 3.42 11.40 10.59 THE 26 ,( BOGDAHN \Q./ GROUP Winter Springs General Employees General Plan and Trust Total Fund (Gross) December 31, 2010 30.0 0.00 20.00 30.00 0.00 5.00 10.00 15.00 20.00 25.00 Over Risk (Standard Devi ation %) Risk (Standard Deviation %) Performance Return Standard Deviation Return Standard Deviation 20.0 ■ Total Fund (Gross) c 25.00 16.36 ■ Total Fund (Gross) 3.98 13.15 • Total Fund Policy x ■ • Total Fund Policy 4.42 11.82 10.0 - Median 50.00 15.11 - Median 4.49 12.23 Hist Up Down 0.0 Tracking , Sharpe ■ Error = 75.00 , Alpha IR Ratio Beta Risk a Capture Capture ■ ■ -10.0 w 3.11 Under a 110.70 -0.35 -0.04 0.09 1.10 11.02 ti 0.00 Performance 100.00 100.00 0.00 N/A 0.11 1.00 9.71 H -20.0 4 3/06 3/07 3/08 3/09 3/10 12/10 -20.0 -10.0 0.0 10.0 20.0 30.0 Sharpe Downside Error Market Total Period 5 -25 25- Median IR Median -75 Beta 75 -95 Total Fund Policy( %) Capture Count Count Count Count Total Fund (Gross) 2.57 ■ Total Fund (Gross) 20 0 (0 %) 7 (35 %) -0.10 5 (25 %) 1.09 8 (40 %) f Over Performance f Under Performance -A-Mar-2006 t Dec -2010 • Total Fund Policy 20 0 (0 %) 9 (45 %) N/A 11 (55 %) 1.00 0 (0 %) 7.50 5.00 2.50 e = 0.00 -2.50 P4 5.00 10.00 8.00 6.00 4.00 2.00 0.00 -2.00 0.00 10.00 20.00 30.00 0.00 5.00 10.00 15.00 20.00 25.00 Risk (Standard Devi ation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation ■ Total Fund (Gross) 0.91 16.36 ■ Total Fund (Gross) 3.98 13.15 • Total Fund Policy 1.30 14.72 • Total Fund Policy 4.42 11.82 - Median 1.07 15.11 - Median 4.49 12.23 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total Fund (Gross) 3.11 108.11 110.70 -0.35 -0.04 0.09 1.10 11.02 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 0.11 1.00 9.71 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total Fund (Gross) 2.57 107.02 114.88 -0.73 -0.10 0.18 1.09 8.61 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 0.22 1.00 7.54 27 THE [ BOG DAHN ``� GROUP Winter Springs General Employees General Plan and Trust Total Domestic Equity December 31, 2010 Financial Reconciliation a 10.00 a Market Value As of 9/30/2010 Net Transfers Contributions Distributions Fees Expenses Income Capital ApprecJDeprec. Market Value As of 12/31/2010 Total Domestic Equity 10,225 470 - -22 -1 38 905 11,615 Financial Reconciliation OctII' I December Market Value As of 9/30/2010 Net Transfers Contributions Distributions Fees Expenses Income Capital ApprecJ Deprec. Market Value As of 12/31/2010 Total Domestic Equity 10,225 470 -22 -1 38 905 11,615 Peer Group I 1 Performance $160.0 40.00 30.00 $140.0 $139.1 $120.0 $116.8 $100.0 1 Oct -2010 1 2 3 4 5 $80.0 Quarter To Year Years Years Years Years Dec -2010 ■ Total Domestic Equity 8.99 (91) 8.99 (91) 16.95 (21) 25.03 (13) -1.20 (32) 0.92 (32) 3.13 (44) • Total Domestic Equity Policy 11.59 (25) 11.59 (25) 16.93 (21) 21.52 (36) -2.38 (50) -0.47 (57) 2.59 (57) $60.0 1 1 1 12/00 12/02 12/04 12/06 12/08 12/10 Median 10.87 10.87 14.85 20.48 -2.39 -0.13 2.90 - Total Domestic Equity - Total Domestic Equity Policy Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep -2010 Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Total Domestic Equity 12.92 (8) -10.12 (15) 5.72 (33) 6.43 (26) 15.75 (34) 17.93 (15) Total Domestic Equity Policy 11.53 (29) -11.32 (41) 5.94 (24) 5.90 (54) 15.61 (39) 15.93 (42) US Core/Large Cap Equity (SA +CF) Median 11.07 -11.43 5.40 6.00 15.28 15.58 THE 28 ,( BOGDAHN \Q./ GROUP 20.00 a 10.00 a 0.00 -1000 $140.0 $139.1 $120.0 $116.8 $100.0 1 Oct -2010 1 2 3 4 5 $80.0 Quarter To Year Years Years Years Years Dec -2010 ■ Total Domestic Equity 8.99 (91) 8.99 (91) 16.95 (21) 25.03 (13) -1.20 (32) 0.92 (32) 3.13 (44) • Total Domestic Equity Policy 11.59 (25) 11.59 (25) 16.93 (21) 21.52 (36) -2.38 (50) -0.47 (57) 2.59 (57) $60.0 1 1 1 12/00 12/02 12/04 12/06 12/08 12/10 Median 10.87 10.87 14.85 20.48 -2.39 -0.13 2.90 - Total Domestic Equity - Total Domestic Equity Policy Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep -2010 Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Total Domestic Equity 12.92 (8) -10.12 (15) 5.72 (33) 6.43 (26) 15.75 (34) 17.93 (15) Total Domestic Equity Policy 11.53 (29) -11.32 (41) 5.94 (24) 5.90 (54) 15.61 (39) 15.93 (42) US Core/Large Cap Equity (SA +CF) Median 11.07 -11.43 5.40 6.00 15.28 15.58 THE 28 ,( BOGDAHN \Q./ GROUP Winter Springs General Employees General Plan and Trust Total Domestic Equity December 31, 2010 30.0 Over 0.00 40.00 50.00 0.00 10.00 20.00 30.00 Performance Risk (Standard Devi ation %) Risk (Standard Deviation %) 18.0 c 25.00 Standard Deviation Sharpe Return Standard Deviation ■ Total Domestic Equity -1.20 24.29 ■ Total Domestic Equity 3.13 19.40 © Total Domestic Equity Policy 1- 50.00 0 • Total Domestic Equity Policy 2.59 19.28 w 6.0 -2.39 23.44 ■ ���� 2.90 18.93 Total Domestic Equity c 75.00 •0.0 ■ 00 , � • � • 0.29 0.03 1.02 17.13 Total Domestic Equity Policy 0.00 100.00 'c Under 0.00 N/A -0.03 1.00 16.86 ' Performance 100.00 Up Down -30.0 3/06 3/07 3/08 3/09 3/10 12/10 0 F -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 ( %) Error Market Count Count Count Count Ratio ■ Total Domestic Equity 20 1 (5 %) 9 (45 %) 5 (25 %) 5 (25 %) f Under Performance f Over Performance -A- Mar -2006 t Dec -2010 • Total Domestic Equity Policy 20 0 (0 %) 1 (5 %) 14 (70 %) 5 (25 %) 10.00 5.00 0.00- -5.00 i -10.00 �1 15.00 10.00 15.00 10.00 5.00 a 0.00 a -5.00 20.00 30.00 40.00 50.00 0.00 10.00 20.00 30.00 Risk (Standard Devi ation %) Risk (Standard Deviation %) Return Standard Deviation Sharpe Return Standard Deviation ■ Total Domestic Equity -1.20 24.29 ■ Total Domestic Equity 3.13 19.40 © Total Domestic Equity Policy -2.38 24.03 • Total Domestic Equity Policy 2.59 19.28 Median -2.39 23.44 - Median 2.90 18.93 40.00 THE 29 BOGDAHN �` GROUP Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total Domestic Equity 4.83 103.00 98.64 1.39 0.29 0.03 1.02 17.13 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 N/A -0.03 1.00 16.86 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total Domestic Equity 43.95 128.34 95.80 8.66 0.19 0.22 0.92 24.24 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 N/A 0.10 1.00 13.38 THE 29 BOGDAHN �` GROUP Winter Springs General Employees General Plan and Trust Lateef Asset Mgmt.Equity December 31, 2010 Financial Reconciliation 1 Q uarter Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income ApprecJDeprec. As of 9/30/2010 12/31/2010 LateefAssetMgmt.Equity 5,016 235 - - -13 -1 15 477 5,729 Financial Reconciliatio O II' o Decem 5 $60.0 9 0.00 -10.00 To Market Value Net Years Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income ApprecJ Deprec. As of 9/30/2010 Dec -2010 12/31/2010 LateefAssetMgmt.Equity 5,016 235 - - -13 -1 15 477 5,729 Peer Group I 1 Perfo rmance 9.55 (86) 15.87 (53) 23.62 (61) 0.89 (18) N/A N/A $110.0 • Russell 1000 Growth Index 11.83 (51) 40.00 30.00 $104.6 $100.0 $97.8 A $90.0 $80.0 $70.0 20.00 Oct -2010 1 2 10.00 a 5 $60.0 9 0.00 -10.00 To -2000 $104.6 $100.0 $97.8 A $90.0 $80.0 $70.0 1 Oct -2010 1 2 3 4 5 $60.0 Quarter To Year Years Years Years Years Dec -2010 ■ Lateef Asset Mgmt.Equity 9.55 (86) 9.55 (86) 15.87 (53) 23.62 (61) 0.89 (18) N/A N/A • Russell 1000 Growth Index 11.83 (51) 11.83 (51) 16.71 (46) 26.55 (39) -0.47 (34) 2.47 (46) 3.75 (48) $50.0 9/07 6/08 3/09 12/09 12/10 Median 11.85 11.85 16.11 25.25 -1.30 2.26 3.68 - LateefAsset Mgmt.Equity - Russell 1000 Growth Index C omparative Perfo 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep -2010 Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 LateefAssetMgmt.Equity 13.95 (24) -11.88 (57) 5.33 (32) 5.83 (77) 15.34 (26) 14.76 (54) Russell 1000 Growth Index 13.00 (37) -11.75 (54) 4.65 (52) 7.94 (29) 13.97 (54) 16.32 (34) US Growth/Large Cap Equity (SA +CF) Median 12.25 -11.63 4.69 7.04 14.04 15.01 THE so ,� BO GDA H N Q� GROUP Winter Springs General Employees General Plan and Trust Lateef Asset Mgmt.Equity December 31, 2010 1.0 Over 30.00 0.00 40.00 5.00 10.00 15.00 20.00 25.00 Performance Risk (Standard Devi ation %) 0.6 Deviation %) Return ■ c 25.00 Return Standard Deviation ■ Lateef Asset Mgmt.Equity 0.89 22.28 a ■ Lateef Asset Mgmt.Equity • 0.2 • Russell 1000 Growth Index -0.47 24.37 • • Russell 1000 Growth Index 50.00 19.44 •••••• -1.30 - 0.2 w • • • • • 3.68 19.73 Hist 75.00 ••••••• Down Tracking -0.6 Sharpe Downside Error Market Under a, Market � IR Ratio Beta Performance 100.00 Capture Capture -1.0 3/06 3/07 3/08 3/09 3/10 12/10 -1.0 -0.6 -0.2 0.2 0.6 1.0 1.18 0.11 0.11 0.85 14.01 Russell 1000 Growth Index 0.00 Total Period 5 -25 25- Median Median -75 75 -95 N/A Russell 1000 Growth Index I%) Count Count Count Count Down ■ Lateef Asset Mgmt.Equity 2 2 (100 %) 0 (0 %) 0 (0 %) 0 (0 %) f Under Performance -A-Dee-2010 t Dec -2010 • Russell 1000 Growth Index 20 0 (0 %) 7 (35 %) 9 (45 %) 4 (20 %) 20.00 15.00 10.00 0.00 c -10.00 P4 -20.00 10.00 5.00 c 0.00 a 5.00 10.00 20.00 30.00 40.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 Risk (Standard Devi ation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation ■ Lateef Asset Mgmt.Equity 0.89 22.28 ■ Lateef Asset Mgmt.Equity N/A N/A • Russell 1000 Growth Index -0.47 24.37 • Russell 1000 Growth Index 3.75 19.44 - Median -1.30 24.49 - Median 3.68 19.73 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture LateefAsset Mgmt.Equity 7.86 89.46 85.92 1.18 0.11 0.11 0.85 14.01 Russell 1000 Growth Index 0.00 100.00 100.00 0.00 N/A 0.06 1.00 16.72 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture LateefAsset Mgmt.Equity N/A N/A N/A N/A N/A N/A N/A N/A Russell 1000 Growth Index 0.00 100.00 100.00 0.00 N/A 0.17 1.00 13.24 THE 31 [ � BO GDA H N `= GROUP Winter Springs General Employees General Plan and Trust Dalton, Greiner, Hartman, Maher & Co. December 31, 2010 Financial Reconciliation 30.00 1 2 Market Value 20.00 a Market Value Net Capital 10.00 As of Contributions Distributions Fees Expenses Income As of 9/30/2010 Transfers ApprecJDeprec. 12/31/2010 Dalton, Greiner, Hartman, Maher & Co. 5,210 235 -10 -1 23 428 5,886 Financial Reconciliation OctI I' o December ■ Dalton, Greiner, Hartman, Maher & Co. 8.45 (88) 8.45 (88) Market Value N/A N/A Market Value N/A Net Capital As of Contributions Distributions Fees Expenses Income As of 9/30/2010 Transfers ApprecJ Deprec. 12/31/2010 Dalton, Greiner, Hartman, Maher & Co. 5,210 235 -10 -1 23 428 5,886 Peer Group Analysis - US All Cap Value Equity (SA +CF) Cumulative Performance $143.6 $140.0 $130.0 $120.0 $1100 30.00 1 2 3 20.00 a 9 10.00 Year 0.00 Years -1000 $143.6 $140.0 $130.0 $120.0 $1100 1 Oct -2010 1 2 3 4 5 Quarter To Year Years Years Years Years Dec -2010 ■ Dalton, Greiner, Hartman, Maher & Co. 8.45 (88) 8.45 (88) 18.03 (45) N/A N/A N/A N/A $100.0 • Russell 3000 Value Index 10.92 (57) 10.92 (57) 16.23 (75) 17.98 (90) -3.91 (92) -3.19 (90) 1.45 (87) 6/09 12/09 6/10 12/10 Dalton, Greiner, Hartman, Maher & Co. Median 11.33 11.33 17.88 23.97 0.30 1.74 4.34 -Russell 3000 Value Index Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep -2010 Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Dalton, Greiner, Hartman, Maher & Co. 11.94 (31) -8.39 (18) 6.12 (63) 7.17 (3) 16.26 (70) N/A Russell 3000 Value Index 10.10 (69) -11.09 (64) 7.05 (49) 4.17 (77) 18.59 (48) 16.81 (81) US All Cap Value Equity (SA +CF) Median 11.01 -10.68 6.96 5.07 18.30 18.68 THE 32 ( BOGDAHN \Q./ GROUP Page Intentionally Left Blank THE 33 r� BOGDAHN G xouP Winter Springs General Employees General Plan and Trust Total International Equity December 31, 2010 Financial Reconciliatio F a i 0.00 Market Value -15.00 Market Value Net Capital As of Contributions Distributions Fees Expenses Income As of 9/30/2010 Transfers ApprecJDeprec. 12/31/2010 Total International Equity 3,128 148 - -7 -2 319 3,586 Financial Reconciliation OctII' I Decem Market Value Market Value Net Capital As of Contributions Distributions Fees Expenses Income As of 9/30/2010 Transfers ApprecJ Deprec. 12/31/2010 Total International Equity 3,128 148 -7 -2 319 3,586 Peer Group I 1 Perfo $200.0 45.00 30.00 $155.8 $150.0- $147.1 $100.0 1 Oct -2010 1 2 3 4 5 Quarter To Year Years Years Years Years Dec -2010 ■ Total International Equity 9.87 (6) 9.87 (6) 20.85 (3) 36.20 (4) -2.61 (35) -1.97 (67) 3.29 (71) • MSCI EAFE Index 6.65 (56) 6.65 (56) 8.21 (64) 19.72 (57) -6.55 (72) -2.30 (70) 2.94 (72) $50.0 12/00 12/02 12/04 12/06 12/08 12/10 Median 6.76 6.76 11.09 20.75 -3.92 -0.49 4.57 -Total International Equity - MSCI EAFE Index C omparative Perfo 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep -2010 Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Total International Equity 19.39 (6) -12.31 (59) 5.07 (5) 1.54 (64) 27.00 (3) 31.73 (9) MSCI EAFE Index 16.53 (37) -13.75 (85) 0.94 (67) 2.22 (50) 19.52 (46) 25.85 (32) International Active Value Equity (SA +CF) Median 15.75 -11.97 1.96 2.17 19.30 23.67 THE 34 , ( BO GDA H N \Q./ GROUP 15.00 F a i 0.00 �1 -15.00 -3000 $155.8 $150.0- $147.1 $100.0 1 Oct -2010 1 2 3 4 5 Quarter To Year Years Years Years Years Dec -2010 ■ Total International Equity 9.87 (6) 9.87 (6) 20.85 (3) 36.20 (4) -2.61 (35) -1.97 (67) 3.29 (71) • MSCI EAFE Index 6.65 (56) 6.65 (56) 8.21 (64) 19.72 (57) -6.55 (72) -2.30 (70) 2.94 (72) $50.0 12/00 12/02 12/04 12/06 12/08 12/10 Median 6.76 6.76 11.09 20.75 -3.92 -0.49 4.57 -Total International Equity - MSCI EAFE Index C omparative Perfo 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep -2010 Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Total International Equity 19.39 (6) -12.31 (59) 5.07 (5) 1.54 (64) 27.00 (3) 31.73 (9) MSCI EAFE Index 16.53 (37) -13.75 (85) 0.94 (67) 2.22 (50) 19.52 (46) 25.85 (32) International Active Value Equity (SA +CF) Median 15.75 -11.97 1.96 2.17 19.30 23.67 THE 34 , ( BO GDA H N \Q./ GROUP Winter Springs General Employees General Plan and Trust Total International Equity December 31, 2010 50.0 Over 0.00 30.00 35.00 40.00 10.00 15.00 20.00 25.00 30.00 Performance Risk (Standard Devi ation %) 30.0 - c 25.00 Return Standard Deviation F a Standard Deviation ■ Total International Equity -2.61 35.85 10.0 ■ Total International Equity 3.29 29.00 • MSCI EAFE Index -6.55 29.70 • • MSCI EAFE Index 2.94 24.05 W - Median -3.92 , - Median -10.0 o 22.83 55_• Hist ••• Down 75.00 • ••• •�• i -30.0- Under a Sharpe Downside a Performance 100.00 Market Alpha IR Ratio -50.0 Risk 3/06 3/07 3/08 3/09 3/10 12/10 R c -50.0 -30.0 -10.0 10.0 30.0 50.0 Total International Equity 9.08 118.24 F 6.04 Total Period 5 -25 25- Median Median -75 75 -95 MSCI EAFE Index( %) 100.00 Count Count Count Count 1.00 ■ Total International Equity 20 0 (0 %) 1 (5 %) 9 (45 %) 10 (50 %) -W Under Performance f Over Performance Mar -2006 tDec-2010 • MSCI EAFE Index 20 0 (0 %) 1 (5 %) 16 (80 %) 3 (15 %) 10.00 5.00 15.00 0.00 -5.00 -10.00 a -15.00 40 10.00 5.00 c 0.00 a -5.00 40 10.00 15.00 20.00 25.00 30.00 35.00 40.00 10.00 15.00 20.00 25.00 30.00 35.00 Risk (Standard Devi ation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation ■ Total International Equity -2.61 35.85 ■ Total International Equity 3.29 29.00 • MSCI EAFE Index -6.55 29.70 • MSCI EAFE Index 2.94 24.05 - Median -3.92 27.96 - Median 4.57 22.83 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total International Equity 9.08 118.24 102.04 6.04 0.62 0.05 1.14 22.97 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A -0.15 1.00 20.09 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Total International Equity 7.66 109.07 106.06 0.62 0.16 0.17 1.12 18.24 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.14 1.00 15.78 35 THE � B©G DAHN `� GROUP Winter Springs General Employees General Plan and Trust RBC Global (Voyageur) December 31, 2010 Financial Reconciliation 1 Quarter Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec.// Deprec. As of 9/30/2010 12/31/2010 RBC Global (Voyageur) 3,128 148 - -7 -2 319 3,586 Financial Reconciliation O II' o December 0.00 a 15.00 -3000 Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec.// Deprec. As of 9/30/2010 12/31/2010 RBC Global (Voyageur) 3,128 148 -7 -2 319 3,586 Peer Group I 1 Performance $120.0 45.00 30.00 $100.0 $80.0- $ 80.2 $60.0 $40.0 1 Oct -2010 1 2 3 4 5 $20.0 Quarter To Year Years Years Years Years Dec -2010 ■ RBC Global (Voyageur) 9.87 (6) 9.87 (6) 20.85 (3) 36.20 (4) -2.61 (35) N/A N/A • MSCI EAFE Index 6.65 (56) 6.65 (56) 8.21 (64) 19.72 (57) -6.55 (72) -2.30 (70) 2.94 (72) $0.0 9/07 6/08 3/09 12/09 12/10 Median 6.76 6.76 11.09 20.75 -3.92 -0.49 4.57 -RBC Global (Voyageur) - MSCIEAFEIndex Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep -2010 Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 RBC Global (Voyageur) 19.39 (6) -12.31 (59) 5.07 (5) 1.54 (64) 27.00 (3) 31.73 (9) MSCI EAFE Index 16.53 (37) -13.75 (85) 0.94 (67) 2.22 (50) 19.52 (46) 25.85 (32) International Active Value Equity (SA +CF) Median 15.75 -11.97 1.96 2.17 19.30 23.67 THE 36 ,( BOGDAHN \Q./ GROUP 15.00 a 0.00 a 15.00 -3000 $100.0 $80.0- $ 80.2 $60.0 $40.0 1 Oct -2010 1 2 3 4 5 $20.0 Quarter To Year Years Years Years Years Dec -2010 ■ RBC Global (Voyageur) 9.87 (6) 9.87 (6) 20.85 (3) 36.20 (4) -2.61 (35) N/A N/A • MSCI EAFE Index 6.65 (56) 6.65 (56) 8.21 (64) 19.72 (57) -6.55 (72) -2.30 (70) 2.94 (72) $0.0 9/07 6/08 3/09 12/09 12/10 Median 6.76 6.76 11.09 20.75 -3.92 -0.49 4.57 -RBC Global (Voyageur) - MSCIEAFEIndex Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep -2010 Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 RBC Global (Voyageur) 19.39 (6) -12.31 (59) 5.07 (5) 1.54 (64) 27.00 (3) 31.73 (9) MSCI EAFE Index 16.53 (37) -13.75 (85) 0.94 (67) 2.22 (50) 19.52 (46) 25.85 (32) International Active Value Equity (SA +CF) Median 15.75 -11.97 1.96 2.17 19.30 23.67 THE 36 ,( BOGDAHN \Q./ GROUP Page Intentionally Left Blank THE 37 r� BOGDAHN G xouP Winter Springs General Employees General Plan and Trust Galliard Core Fixed Income December 31, 2010 Financial Reconciliation 5.00 Market Value Market Value a Net Capital 0.00 As of Contributions Distributions Fees Expenses Income As of 9/30/2010 Transfers ApprecJDeprec. 12/31/2010 Galliard Core Fixed Income 3,995 259 - -45 4,209 Financial Reconciliation OctI I' o December Market Value Market Value Net Capital As of Contributions Distributions Fees Expenses Income As of 9/30/2010 Transfers ApprecJ Deprec. 12/31/2010 Galliard Core Fixed Income 3,995 259 -45 4,209 Peer Group Analysis - US Intermediate Fixed Income (SA +CF) Cumulative Performance / \$121.9 $lzo.o / $ 119.5 $110.0 $100.0 1 Oct -2010 1 2 3 4 5 Quarter To Year Years Years Years Years Dec -2010 ■ Galliard Core Fixed Income -1.05 (43) -1.05 (43) 7.66 (15) 10.64 (14) 5.50 (82) N/A N/A $90.0 1 1 • Barclays Capital Intermediate Aggregate -0.75 (25) -0.75 (25) 6.15 (66) 6.31 (71) 5.82 (75) 6.12 (72) 5.81 (71) 9/07 6/08 3/09 12/09 12/10 Galliard Core Fixed Income Median -1.10 -1.10 6.46 7.31 6.25 6.50 6.10 - Barclays Capital Intermediate Aggregate Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep -2010 Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Galliard Core Fixed Income 2.92 (35) 2.63 (67) 3.01 (4) 0.76 (36) 5.22 (18) 4.80 (17) Barclays Capital Intermediate Aggregate 2.07 (88) 2.92 (49) 1.81 (56) 0.53 (57) 3.21 (69) 1.68 (75) US Intermediate Fixed Income (SA +CF) Median 2.76 2.90 1.84 0.59 3.59 2.63 THE 38 ,( BOGDAHN \Q./ GROUP 5.00 a 0.00 -5 00 / \$121.9 $lzo.o / $ 119.5 $110.0 $100.0 1 Oct -2010 1 2 3 4 5 Quarter To Year Years Years Years Years Dec -2010 ■ Galliard Core Fixed Income -1.05 (43) -1.05 (43) 7.66 (15) 10.64 (14) 5.50 (82) N/A N/A $90.0 1 1 • Barclays Capital Intermediate Aggregate -0.75 (25) -0.75 (25) 6.15 (66) 6.31 (71) 5.82 (75) 6.12 (72) 5.81 (71) 9/07 6/08 3/09 12/09 12/10 Galliard Core Fixed Income Median -1.10 -1.10 6.46 7.31 6.25 6.50 6.10 - Barclays Capital Intermediate Aggregate Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep -2010 Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Galliard Core Fixed Income 2.92 (35) 2.63 (67) 3.01 (4) 0.76 (36) 5.22 (18) 4.80 (17) Barclays Capital Intermediate Aggregate 2.07 (88) 2.92 (49) 1.81 (56) 0.53 (57) 3.21 (69) 1.68 (75) US Intermediate Fixed Income (SA +CF) Median 2.76 2.90 1.84 0.59 3.59 2.63 THE 38 ,( BOGDAHN \Q./ GROUP Winter Springs General Employees General Plan and Trust Galliard Core Fixed Income December 31, 2010 6.0 4.00 6.00 0.00 10.00 Over 1.50 3.00 4.50 6.00 Performance 9.00 Risk (Standard Devi ation %) 5.8 c 25.00 Return Standard Deviation 0 5.6 Standard Deviation 50.00 • •• ••• 5.50 4.80 • 7 5.4 a • • • • • • • D° • Barclays Capital Intermediate Aggregate 5.82 75.00 2.91 w • Barclays Capital Intermediate Aggregate 5.81 s 5.2 Median 6.25 c Under a - Median a Performance 3.58 100.00 Hist 5.0 Up Down 3/06 3/07 3/08 3/09 3/10 12/10 5.0 5.2 5.4 5.6 5.8 6.0 Tracking Total Period 5 -25 25- Median Median -75 75 -95 Barclays Capital Intermediate Aggregate I%) Sharpe Count Count Count Count ■ Galliard Core Fixed Income 2 0 (0 %) 0 (0 %) 0 (0 %) 2 (100 %) f Under Performance -A-Dec-2010 t Dec -2010 • Barclays Capital Intermediate Aggregate Alpha 20 0 (0 %) 9 (45 %) 11 (55 %) 0 (0 %) 12.00 10.00 8.00 6.00 E 4.00 7 a 2.00 0.00 10.50 9.00 7.50 � 6.00 i 4.50 z 3.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 1.50 3.00 4.50 6.00 7.50 9.00 Risk (Standard Devi ation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation ■ Galliard Core Fixed Income 5.50 4.80 ■ Galliard Core Fixed Income N/A N/A • Barclays Capital Intermediate Aggregate 5.82 2.91 • Barclays Capital Intermediate Aggregate 5.81 2.87 Median 6.25 4.12 - Median 6.10 3.58 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Galliard Core Fixed Income 2.77 102.58 120.29 -0.26 -0.10 1.04 1.00 2.78 Barclays Capital Intermediate Aggregate 0.00 100.00 100.00 0.00 N/A 1.45 1.00 1.60 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Galliard Core Fixed Income N/A N/A N/A N/A N/A N/A N/A N/A Barclays Capital Intermediate Aggregate 0.00 100.00 100.00 0.00 N/A 1.11 1.00 1.31 KE THE ( B©G DAHN \`� GROUP Winter Springs General Employees General Plan and Trust Galliard TIPS December 31, 2010 Financial Reconciliation 1 Quarter Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income ApprecJDeprec. As of 9/30/2010 12/31/2010 Galliard TIPS 979 47 - 4 -5 1,024 Financial Reconciliation O II' o December 5 $105.0 a 0.00 To -500 Years Market Value Years Years Market Value Net Dec -2010 Capital As of Contributions Distributions Fees Expenses Income As of 9/30/2010 Transfers (20) ApprecJ Deprec. 12/31/2010 Galliard TIPS 979 47 4 -5 1,024 Peer Group ' Performance 4.97 (72) 6.60 (64) 5.35 (82) $100.0 $125.0 15.00 10.00 $121.4 $120.0 $120.1 $115.0 $110.0 1 Oct -2010 5.00 a 3 4 5 $105.0 a 0.00 To -500 $121.4 $120.0 $120.1 $115.0 $110.0 1 Oct -2010 1 2 3 4 5 $105.0 Quarter To Year Years Years Years Years Dec -2010 ■ Galliard TIPS -0.05 (20) -0.05 (20) 4.79 (95) 7.42 (100) 4.59 (97) N/A N/A • Barclays Capital TIPS -0.65 (35) -0.65 (35) 6.31 (50) 8.83 (39) 4.97 (72) 6.60 (64) 5.35 (82) $100.0 9/07 6/08 3/09 12/09 12/10 Median -0.73 -0.73 6.30 8.76 5.26 6.82 5.62 - Galliard TIPS Barclays Capital TIPS Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep -2010 Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Galliard TIPS 1.89 (95) 2.21 (93) 0.68 (60) 2.32 (19) 2.85 (85) 0.48 (91) Barclays Capital TIPS 2.48 (70) 3.82 (56) 0.56 (78) 1.76 (89) 3.08 (57) 0.66 (66) US TIPS (SA +CF) Median 2.65 3.86 0.71 1.91 3.11 0.70 THE ao BOGDAHN Q-0* GROUP Winter Springs General Employees General Plan and Trust Galliard TIPS December 31, 2010 5.0 6.00 7.00 0.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50 Over Risk (Standard Devi ation %) Risk (Standard Deviation %) Performance Return Standard Deviation Return Standard Deviation 4.8- 4.59 5.02 ■ Galliard TIPS N/A N/A • Barclays Capital TIPS 4.97 5.70 c 25.00 • Barclays Capital TIPS 5.35 5.52 Median 5.26 5.35 - Median 5.62 5.29 4.6 Up Lk Tracking 50.00 Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk 4.4- H Capture Capture S • • • • Galliard TIPS 3.08 75.36 66.45 c 75.00 -0.17 • • 0.71 4.59 a 100.00 100.00 y N/A 0.51 1.00 • • 4.2- Up Down Tracking Under a Sharpe Downside U Market Performance 100.00 IR Ratio Beta Risk 4.0 Capture Capture 3/06 3/07 3/08 3/09 3/10 12/10 4.0 4.2 4.4 4.6 4.8 5.0 N/A N/A N/A N/A N/A Barclays Capital TIPS 0.00 100.00 100.00 0.00 Total Period 5 -25 25- Median Median -75 75 -95 Barclays Capital TIPS(%) Count Count Count Count ■ Galliard TIPS 2 0 (0 %) 0 (0 %) 0 (0 %) 2 (100 %) f Under Performance -A-Dee-2010 t Dec -2010 • Barclays Capital TIPS 20 0 (0 %) 1 (5 %) 14 (70 %) 5 (25 %) 8.00 7.00 6.00 c 5.00 a 4.00 ■ T 7.50 7.00 6.50 = 6.00 5.50 a • T 5.00 4.00 5.00 6.00 7.00 8.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50 Risk (Standard Devi ation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation ■ Galliard TIPS 4.59 5.02 ■ Galliard TIPS N/A N/A • Barclays Capital TIPS 4.97 5.70 • Barclays Capital TIPS 5.35 5.52 Median 5.26 5.35 - Median 5.62 5.29 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Galliard TIPS 3.08 75.36 66.45 0.98 -0.17 0.60 0.71 4.59 Barclays Capital TIPS 0.00 100.00 100.00 0.00 N/A 0.51 1.00 6.15 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture Galliard TIPS N/A N/A N/A N/A N/A N/A N/A N/A Barclays Capital TIPS 0.00 100.00 100.00 0.00 N/A 0.42 1.00 5.01 THE 41 BO GDA H N Q GROUP Winter Springs General Employees General Plan and Trust American Core Realty Fund December 31, 2010 Financial Reconciliatio 1 Oct -2010 1 2 3 4 5 Market Value Quarter Market Value Year Net Years Years Years Capital As of Contributions Distributions Fees Expenses Income As of 9/30/2010 Transfers Apprec.// Deprec. 12/31/2010 American Core Realty Fund 628 - -7 -2 7 16 642 Financial Reconciliation OctII' I Decem • NCREIF Property Index 4.62 (N /A) 4.62 (N /A) 13.11 (N /A) -3.02 (N /A) -4.18 (N /A) 0.48 (N /A) 3.51 (N /A) $60.0 Market Value Market Value 6/08 3/09 Net Median N/A N/A Capital N/A As of Contributions Distributions Fees Expenses Income 1 As of 9/30/2010 Transfers 1 1 1 Apprec.// Deprec. 12/31/2010 American Core Realty Fund 628 Quarter -7 -2 7 16 642 $110.0 20.00 10.00 a 0.00 a -10.00 -2000 $100.0 $90.8 $90.0 $80.0 $75.4 1 Oct -2010 1 2 3 4 5 $70.0 Quarter To Year Years Years Years Years Dec -2010 ■ American Core Realty Fund 3.71 (N /A) 3.71 (N /A) 11.23 (N /A) -11.77 (N /A) -9.46 (N /A) N/A N/A • NCREIF Property Index 4.62 (N /A) 4.62 (N /A) 13.11 (N /A) -3.02 (N /A) -4.18 (N /A) 0.48 (N /A) 3.51 (N /A) $60.0 9/07 6/08 3/09 12/09 12/10 Median N/A N/A N/A N/A N/A N/A N/A -American Core Realty Fund _ NCREIF Property Index C omparative Perfo 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep -2010 Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 American Core Realty Fund 4.56 (74) 3.25 (57) -0.67 (76) -4.23 (66) -9.62 (69) -7.20 (47) NCREIF Property Index 3.86 (86) 3.31 (50) 0.76 (40) -2.11 (19) -3.32 (25) -5.20 (19) US Private Real Estate -Open End (SA +CF) Median 6.30 3.30 0.64 -3.32 -7.30 -8.01 THE 42 I ( � BO GDA H N ``-'�, GROUP Winter Springs General Employees General Plan and Trust American Core Realty Fund December 31, 2010 -4.0 Over 0.00 20.00 25.00 0.00 5.00 • • • • Performance 15.00 20.00 Risk (Standard Devi ation %) c 25.00 Risk (Standard Deviation %) Return Standard Deviation Return 50.00 ,* •; -9.46 11.15 ■ American Core Realty Fund • N/A N/A FG -8.0 v 75.00 8.25 • NCREIF Property Index v Under Y p"., PerforAe 100.00 - Median -9.56 14.18 -10.0 - Median 3/06 3/07 3/08 12.93 3/09 3/10 12/10 -10.0 -8.0 -6.0 -4.0 Down Total Period 5 -25 25- Median Median -75 75 -95 NCREIFProperty Index I%) Sharpe Count Count Count Count Error ■ American Core Realty Fund 2 0 (0 %) 1 (50 %) 0 (0 %) 0 (0 %) f Under Performance -A-Dee-2010 t Dec -2010 • NCREIF Property Index 20 8 (40 %) 5 (25 %) 6 (30 %) 0 (0 %) 10.00 0.00 -10.00 0 a -20.00 40 40 4.50 3.00 1.50 0.00 -1.50 0 a -3.00 -4.50 0.00 5.00 10.00 15.00 20.00 25.00 0.00 5.00 10.00 15.00 20.00 Risk (Standard Devi ation %) Risk (Standard Deviation %) Return Standard Deviation Return Standard Deviation ■ American Core Realty Fund -9.46 11.15 ■ American Core Realty Fund N/A N/A • NCREIF Property Index -4.18 8.25 • NCREIF Property Index 3.51 7.96 - Median -9.56 14.18 - Median -1.02 12.93 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture American Core Realty Fund 4.58 96.74 158.06 -4.26 -1.15 -0.90 1.26 11.33 NCREIF Property Index 0.00 100.00 100.00 0.00 N/A -0.57 1.00 7.41 Hist Up Down Tracking Sharpe Downside Error Market Market Alpha IR Ratio Beta Risk Capture Capture American Core Realty Fund N/A N/A N/A N/A N/A N/A N/A N/A NCREIF Property Index 0.00 100.00 100.00 0.00 N/A 0.19 1.00 5.74 THE 43 [ � BO GDA H N `= GROUP Winter Springs General Employees General Plan and Trust Intercontinental December 31, 2010 Financial Reconciliation 1 Quarter Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income ApprecJDeprec. As of 9/30/2010 12/31/2010 Intercontinental 1,300 - -3 13 42 1,352 Financial Reconciliation O II' o December Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income ApprecJ Deprec. As of 9/30/2010 12/31/2010 Intercontinental - 1,300 -3 13 42 1,352 Group Peer Private • Estate-Open 20.00 10.00 0.00 a a -10.00 -2000 $104.5 $104.0 $103.0 $102.0 $101.0 1 Oct -2010 1 2 3 4 5 Quarter To Year Years Years Years Years Dec -2010 ■ Intercontinental 4.51 (N /A) 4.51 (N /A) N/A N/A N/A N/A N/A $100.0 • NCREIF Fund Index -Open End Diversified Core (EW) 4.99 (N /A) 4.99 (N /A) 16.36 (N /A) -9.59 (N /A) -9.73 (N /A) -3.90 (N /A) -0.16 (N /A) 9/10 12/10 Intercontinental Median N/A N/A N/A N/A N/A N/A N/A -NCREIF Fund Index -Open End Diversified Core (EW) Comparative Performance 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Sep -2010 Jun -2010 Mar -2010 Dec -2009 Sep -2009 Jun -2009 Intercontinental N/A N/A N/A N/A N/A N/A NCREIF Fund Index -Open End Diversified Core (EW) 5.45 (62) 4.32 (30) 0.75 (40) -3.48 (52) -7.32 (51) -9.03 (67) US Private Real Estate -Open End (SA +CF) Median 6.30 3.30 0.64 -3.32 -7.30 -8.01 THE 44 ( BOGDAHN \Q./ GROUP Page Intentionally Left Blank THE 45 r� BOGDAHN G xouP Winter Springs General Employees General Plan and Trust Benchmark History As of December 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 U.S. Treasury: U.S. TIPS NCREIF Property Index Effective Date: Oct -2010 Russell 3000 Index Barclays Capital Intermediate Aggregate MSCI EAFE Barclays Capital U.S. Treasury: U.S. TIPS NCREIF Fund Index -Open End Diversified Core Equity (EV) Total E Effective Date: Jan -1970 65.00 S &P 500 Index 30.00 MSCI EAFE 5.00 5.00 Allocation Effective Date: Oct -2003 5.00 S &P 500 Index 60.00 MSCI EAFE 30.00 10.00 20.00 Effective Date: Sep -2006 15.00 S &P 500 Index 60.00 10.00 Effective Date: Oct -2009 40.00 Russell 3000 Index MSCI EAFE 50.00 25.00 Total Domestic Equity Po 15.00 5.00 Allocation Effective Date: Jan -1926 5.00 S &P 500 Index Effective Date: Oct -2009 50.00 Russell 3000 Index 20.00 15.00 5.00 10.00 Total Fixed Policy Effective Date: Nov -2000 Barclays Capital Aggregate Effective Date: Sep -2006 Barclays Capital Intermediate Aggregate 46 90.00 10.00 85.00 15.00 100.00 77.00 23.00 100.00 100.00 100.00 100.00 THE BO GDA H N `� GROUP Winter Springs General Employees General Plan and Trust As of December 31, 2010 Dkelosu res Neither The Bogdahn Group, nor any covered associates have made political contributions to any official associated with the Winter Springs General Employees General Plan and Trust, in excess of the permitted amount. THE 47 [ � BOGDAHN 01 `= GROUP City of Winter Springs General Employee Retirement System Compliance Checklist as of December 31, 2010 lTotal . No 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 domestic equity returns ranked within the top 40th percentile of its peer group over the trailing three year period. ✓ 3. Total domestic equity returns ranked within the top 40th percentile of its peer group over the trailing five year period. ✓ 4. The total equity allocation was less than 75% of the total plan assets at market. ✓ Total foreign equity was less than 25% of the total plan assets at cost. ✓ Fixed Income Compliance: Yes No N/A 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 RBC Global Galliard TIPS Yes No N/A Yes No N/A Yes No N/A Yes No N/A 'Yes Nc 1. Manager outperformed the index over the trailing three year period. ✓ ✓ ✓ ✓ ✓ 2. Manager outperformed the index over the trailing five year period. ✓ ✓ ✓ ✓ ✓ 3. Manager ranked within the top 40th percentile over trailing three and five year periods. ✓ ✓ ✓ ✓ ✓ 4. Manager ranked within the top 40th percentile over trailing three and five year periods. ✓ ✓ ✓ ✓ ✓ 5. Less than four consecutive quarters of under performance relative to the benchmark. ✓ ✓ ✓ ✓ ✓ 6. Three year down - market capture ratio less than the index. ✓ ✓ ✓ ✓ 48 City of Winter Springs General Employee Retirement System Compliance Checklist as of March 31, 2010 1. Manager outperformed the index over the trailing three year period. ✓ ✓ 2. Manager outperformed the index over the trailing five year period. ✓ ✓ 3. Manager ranked within the top 40th percentile over trailing three year period. ✓ ✓ 4. Manager ranked within the top 40th percentile over trailing five year period. ✓ ✓ 5. Less than four consecutive quarters of under performance relative to the benchmark. ✓ ✓ 6. Three -year down - market capture ratio less than the index. ✓ ✓ 49 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. 46 THE _ BOGDAHN GRoup THE 47 [ � BOGDAHN `= GROUP THE 48 [ � BOGDAHN `= GROUP THE 49 [ � BO GDA H N `= GROUP Chicago 4320 Winfield Road Suite 200 Warrenville, Illinois 60555 THE BOGDAHN GROUP simplifying your investment and fiduciary decisions Orlando 4901 Vineland Road, Suite 600 Orlando, Florida 32811 866.240.7932 Cleveland 6133 Rockside Road Rockside Square II, Suite 303 Independence, Ohio 44131 Dallas Milwaukee 15770 Dallas Parkway, Suite 250 250 E. Wisconsin Ave Suite 1800 Dallas, Texas 75248 Milwaukee, Wisconsin 53202