The URL can be used to link to this page

Home My WebLink About2011 08 09 Regular 601 Presentation From Bogdahn Consulting Review Report Second Quarter 2011Winter Springs General Employees General Plan and Trust 2nd Quarter 2011 W WW. BOG DAH N GRO UP. COM THE 17 BOGDAHN -..0/ GROUP. shaplifyiug your invesnueut and Frdiecia y decisions 2n Quarter 2011 Market Environment THE [� BQ G DAHN GROUP. Page Intentionally Left Blank The Market Environment Major Market Index Performance Period Ended: June 30, 2011 Portfolio Attribution (Reference pages 18 -19, 21 -22 of The Bogdahn Group June 2011 Report) • Economic optimism, which drove equity markets up nicely throughout 2010 up through April, gave way to a more somber tone for the rest of the quarter. Disappointing survey data and various indicators turned believers in the economic recovery into skeptics. Bond yields declined notably against consensus, providing for the most significant positive contribution to the Pension Portfolio return. Real Estate investments continued to perform well, with steady operating income distributions and modest asset appreciation. • The Plan earned 0.95% net for the quarter, adding modestly to the fiscal year to date results now at 11.85% net. Plan investments year over year for the period ended December are up 22.95% net. Corresponding peer group rankings were 59th 38th and 21St percentile(s) respectively. • The most notable active manager contribution for the quarter came from Lateef where performance exceeded the benchmark by 0.68% (1.44% vs. 0.76 %). • Allocation to Real Estate continues to help Plan results on the margin with the blended manager returns outperforming both fixed income and equity for the quarter: 3.4% combined manager vs. 2.3% fixed income, and 0.36% total equity. • Plan allocation remains on target policy with monthly investment of net Plan contributions providing for full market exposure. What helped? • Allocation shift from fixed income to Real Estate continues to provide a boost to absolute return results • Active management for the quarter from Lateef What hurt? • Active management - except Lateef - was marginally below benchmarks for the quarter Recommendations: • Review Global Bond alternatives THE BOGDAHN GROUP The Market Environment Major Market Index Performance Period Ended: June 30, 2011 ■ The second quarter was once again fraught with a long list of macro issues for investors to digest. Although none of these issues were necessarily new, there were certainly new elements to drive market volatility. Domestically, investors anticipated the ramifications of the end of the Fed's $600 billion Treasury purchase program (QEII) on June 30, 2011. In addition, the politicization of the looming deadline to raise the U.S. debt ceiling increased investor uncertainty regarding the "financial bedrock" of the world's risk -free asset and the possibility of a U.S. default. Outside of the U.S., many Euro -based countries continued to wrestle with the potential of punitive capital market rates versus the adoption of tough austerity measures tied to any potential aid package. ■ Domestically, large cap stocks, as measured by the S &P 500, managed to generate a return of 0.1% for the quarter despite a pullback of roughly 7% intra - quarter. While the Russell MidCap index posted a slightly higher return of 0.4% over the period, the Russell 2000 index (small cap) returned a disappointing -1.6 %. This quarter's performance represents the first time that the results of small cap issues have trailed their large cap counterparts since the 4th quarter of 2009. ■ Broad market international equity results were also positive for the quarter with the MSCI- ACWxUS index returning 0.6% in U.S. Dollars (USD). The emerging market component of the broad international index was a drag on the quarter's results with the MSCI -EM index posting a return of -1.0% for the quarter. The USD's continued weakness boosted un- hedged U.S. investor international equity returns by roughly 200 basis points (bps) for the quarter. ■ Despite concerns over inflation and the timing of the removal of accommodative Fed policies, each of the fixed income indices experienced positive performance for the quarter with the broad market Barclays US Aggregate index returning 2.3 %. Source: Paris/ Investment Metrics 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 3 -Month T -Bill Quarter Performance 0.6 1.8% -1.0% 0.1 0.0 0.1 -1.6% 0.4 2.3 2.2% 3.7 2.3 2.3 0.0 -2.0% -1.0% 0.0% 1.0% 1 -Year Performance 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 3 -Month T -Bill ' 3.9% 2.3 = 7.7% 3.8% 6.3% 0.0% 10.0% 20.0% 30.0% 40.0% 2.0% 3.0% 4.0% 30.3 30.9 28.2 30.7 32.4 31.9% 38.5% 37.4 4 50.0% THE BQGDAHN GROUP. The Market Environment Domestic Equity Style Index Performance Period Ended: June 30, 2011 ■ Growth outperformed value in each of the capitalization segments of the market during the second quarter. While the absolute return differentials between the style -based benchmarks were less than 300 bps across the capitalization spectrum, the relative variance appears more pronounced due the quarter's muted equity index performance. With the exception of small cap style indices, which were both negative for the quarter, the growth -based benchmarks were positive versus the negative results posted by value -based benchmarks. ■ The largest determinant of growth's outperformance relative to value for the quarter was the result of large sector weight differentials. While, the core benchmarks' two largest sectors are information technology and financials, information technology represents roughly 2,000 bps more of the growth benchmark sector weights while financials represent roughly 2,000 bps more of the value benchmark sector weights. Although both sectors were negative for the quarter, the performance of financials represented a much larger drag on index results and thus value - based benchmarks. ■ Growth continued to show a strong level of outperformance relative to value for all capitalization ranges in the one -year period. This outperformance is particularly pronounced in the small cap segment where growth has outperformed value by more than 1,000 bps for the year. The small cap growth benchmark's strength over the trailing one -year period is largely the result of its substantial weight to the information technology sector (27.8% for growth versus 9.5% for value), which posted a return of 49.1 %. 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 -0.7% 0.0% 0.6% -0.5% 0.1 0.8% -0.7% 0.4% 1.6% -2.6% -1.6% -0.6 -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 1 -Year Performance - Russell Style Series THE Source: Paris/ Investment Metrics 5 BOGDAHN GROUP. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% The Market Environment GICS Sector Performance & (Sector Weight) Period Ended: June 30, 2011 Russell 1000 • Reviewing the Global Industry Classification Standard (GICS) Energy (12.3 %) sectors of the Russell 1000 large cap stock index, performance varied by 1,200 bps from best to worst. Within the ten economic Materials (4.1 %) sectors, five were positive and five were negative. In stark Industrials (11.4 %) contrast to last quarter, led by a selloff in oil, the energy sector 5.9 posted one of the weakest results during the 2nd quarter with a Consumer Disc (11.3 %) return of -5.0 %. Only the financial sector posted a weaker result Consumer Staples (9.8 %) with a return of -5.3 %. While the health care sector's return of 15.6 7.2% was the strongest sector result for the quarter, the Health Care (11.5 %) consumer staples' sector return of 5.6% represented a strong Financials (15.4 %) turnaround after posting the weakest large cap sector performance during the 1 st quarter. Info Technology (17.8 %) Telecom Services (2.9 %) • GICS sector results in the Russell 2000 small cap index were also mixed during the quarter with the same five sectors posting Utilities (3.5 %) ■Quarter 01 -Year negative and positive results, respectively. However, small cap - 20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% sector performance was spread over a wider 2,260 bps. Much like the large cap benchmark, the energy sector posted weak ■Quarter 01 -Yr sector performance for the quarter with a return of -7.0 %. The Russell 2000 ea more mild positive performance posted by the small cap GICS Energy (6.8 %) sectors for the quarter resulted in overall negative performance Materials (5.7 %) for the growth, value and core benchmarks. Industrials (15.1 %) ■ All ten sectors of both the Russell 1000 and Russell 2000 benchmarks posted strong positive results over the one -year Consumer Disc (13.1 %) period. Energy, materials and consumer discretionary issues Consumer Staples (3.1 %) dominated large cap results with sector performance in excess of Health Care (13.0 %) 40% for the year. The one -year sector results for small cap issues favored energy, materials, information technology and Financials (20.4 %) telecommunication services with each sector returning in excess Info Technology (18.9%) of 49 %. Telecom Services (0.9 %) Utilities (3.1 %) 7.0 -4.1 -4.5 -2.4 -3.8 1.8% 5.9 3.7 20.5 15.6 2.9 66.3 53.7 37.0 36.1 32.2 36.7 49.1 49.3 29.0 - 20.0% 0.0% 20.0% 40.0% 60.0% 80.0% THE Source: Thompson Financial 6 [r BOGDAHN GROUP. The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 Period Ended: June 30, 2011 Russell 000 Exxon Mobil Corp Top 10 Weighted Symbol XOM Stocks Weight 3.08% Return -2.7% Sector Energy Apple Inc AAPL 2.26% -3.7% Information Technology IBM IBM 1.54% 5.7% Information Technology Chevron Corp CVX 1.53% -3.5% Energy General Electric Company GE 1.53% -5.2% Industrials Microsoft Corp MSFT 1.40% 3.2% 1 Information Technology Procter & Gamble Cc PG 1.36% 4.0% Consumer Staples At &T Inc T 1.34% 4.1% Telecomm Service Johnson & Johnson JNJ 1.31% 13.2% Health Care JPMorgan Chase & Co JPM op i Performing 1.27% Stocks - 10.7% I Financials National Semiconductor Corp NSM 0.04% 71.6% Information Technology Level 3 Communications Inc LVLT 0.02% 66.0% Telecomm Service Biogen Idec Inc BIIB 0.16% 45.7% Health Care Herbalife Ltd HLF 0.04% 42.2% Consumer Staples Southern Union Cc SUG 0.03% 40.9% Energy Green Mountain Coffee Roasters GMCR 0.06% 38.2% Consumer Staples Carpenter Technology Corp CRS 0.02% 35.5% Materials Hansen Natural Corp HANS 0.03% 34.4% Consumer Staples Tempur Pedic International Inc TPX 0.03% 33.9% Consumer Discretionary Sirius XM Radio Inc Russell iii Frontline Ltd SIRI Bottom i Performing Symbol FRO 0.06% Stocks Weight 0.01% 31.9% Return -39.5% Consumer Discretionary Sector Energy Community Health Systems Inc CYH 0.02% - 35.4% Health Care Lender Processing Services Inc LPS 0.02% -34.8% Information Technology Micron Technology Inc MU 0.06% - 34.7% Information Technology Memc Electronic Materials Inc WFR 0.02% -34.2% Information Technology Clearwire Corp CLWR 0.01% -32.4% 1 Telecomm Service Aeropostale Inc ARO 0.01% -29.5% Consumer Discretionary Forest Oil Corp FST 0.03% - 29.4% Energy Ciena Corp CIEN 0.02% -29.2% Information Technology Skyworks Solutions Inc SWKS 0.04% -29.1% Information Technology Russell 000 Riverbed Technology Inc Top 10 Weighted Symbol RVBD Stocks Weight 0.35% Return -7.4% Sector Information Technology Tibco Software Inc TIBX 0.35% -3.4% Information Technology Verifone Systems Inc PAY 0.31% -24.9% Information Technology Rackspace Hosting Inc RAX 0.31% -5.5% Information Technology American Capital Agency Corp AGNC 0.28% 3.4% Financials Nordson Corp NDSN 0.27% 1 -10.6% Industrials Brigham Exploration Cc BEXP 0.27% -27.7% Energy Acme Packet Inc APKT 0.26% -8.2% Information Technology Amerigroup Corp AGP 0.26% 0.1% Health Care Deckers Outdoor Corp Russell iii Global Crossing Ltd DECK Top i Performing i �lllllllllllllllllllllllllllhWeight GLBC 0.26% Stocks 0.07% -3.6% Return 175.7% Consumer Discretionary Sector Telecomm Service Nature's Sunshine Products Inc NATR 0.01% 117.4% Consumer Staples Conn's Inc CONN 0.01% 93.1% Consumer Discretionary Orthovita Inc VITA 0.02% 82.6% Health Care Barnes And Noble Inc BKS 0.04% 80.4% Consumer Discretionary Doral Financial Corp DRL 0.00% 78.2% Financials Pharmacyclics Inc PCYC 0.03% 77.2% Health Care Empire Resorts Inc NYNY 0.00% 71.0% Utilities Complete Genomics Inc GNOM 0.01% 69.2% Health Care Ems Technologies Inc Russell iii Lee Enterprises Inc ELMG Bottom i Performing Symbol LEE 0.03% Stocks Weight 0.01% 67.7% Return -69.7% Information Technology Sector Consumer Discretionary Evergreen Solar Inc ESLR 0.00% - 63.7% Information Technology American Superconductor Corp AMSC 0.05% -63.7% Industrials Enerl Inc HEV 0.01% - 62.8% Industrials Biomimetic Therapeutics Inc BMTI 0.01% -60.9% Health Care Compucredit Holdings Corp CCRT 0.00% -60.4% lFinancials Pmi Group Inc PMI 0.02% -60.4% Financials Pain Therapeutics Inc PTIE 0.03% - 59.5% Health Care Lecg Corporation XPRT 0.00% -57.3% Industrials Smith Micro Software Inc SMSI 0.02% -55.0% Information Technology THE Source: Thompson Financial 7 [ r BQGDAHN `-� GROUP. The Market Environment International and Regional Market Index Performance (# Countries) Period Ended: June 30, 2011 • Although the broad market international index posted positive performance for the quarter in U.S. Dollars (USD), emerging AC World x US (44) markets were negative during the period. The MSCI- ACWxUS WORLD x US (23) index returned a mild 0.6% for the quarter while the Emerging Markets index posted a weaker -1.0 %. The MSCI -EAFE index, EAFE (22) which excludes the emerging market countries, returned a stronger 1.8% for the quarter. Japan, which was a large drag on Europe (16> international market results during the 1St quarter, managed to Pacific (5) post a positive USD return of 0.2% for the 2nd quarter. Emerging Mkt (21) • Much like domestic equity markets, the performance of the MSCI- ACWxUS index was held back by weak results in the EM Europe (5> energy ( -5.3 %) and financial ( -0.9 %) sectors. EM Asia (8) • The impact of currency movements on returns for the quarter EM Latin Amer (5) was si nificant While the USD returns for man of the Quarter Performance I ■USD ❑Local Currency 0.6 -1.4 1.1 % 1.1 1.8% -0.5 2.9 0.6 0.0% -2.6 1.0% -2.6 -3.1 -4.1 0.1 % 1.1 2.5 -5.7 g y - 8.0% -6.0% -4.0% -2.0% international equity indices were positive, the local currency returns were unilaterally lower, which reflected further depreciation of the USD relative to other currencies. 1 -Year Performance AC World x US (44) ■ Over the one -year period, the performance of developed and emerging markets were similar with the MSCI -EAFE index WORLD x US (23) returning 30.9% and the MSCI -EM index returning 28.2 %. EAFE (22) Europe represented the dominant regional performance for both developed (36.8 %) and emerging (41.1 %) markets over the one- Europe (16) year period. Each of the broad and regional benchmark indices clearly illustrate the substantial depreciation of the USD relative Pacific (5) to other currencies over the trailing one -year period. Emerging Mkt (21) EM Europe (5) EM Asia (8) EM Latin Amer (5) Source: MSCI 8 U.0 /0 L.0 /0 `/.0 /0 ■USD ❑Local Currency 30.3 15.0% 30.9 14.3 30.9 13.8 36.8 17.9 21.0% 7.0 28.2 17.1 41.1 26.9 26.1 18.0 26.3 11.1 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% THE BOGDAHN GROUP. The Market Environment U.S. Dollar International Index Attribution & Country Detail Period Ended: June 30, 2011 MSCI - ACWIxUS �, Weight Q uarter I-Year Return Energy 8.1% -2.9% 45.6% Materials 11.3% 1.1% 45.0% Industrials 12.9% -0.2% 34.9% Consumer Discretionary 10.5% 6.8% 37.5% Consumer Staples 10.2% 7.6% 28.5% Health Care 8.7% 8.9% 27.0% Financials 23.5% -0.5% 24.5% Information Technology 4.7% -0.9% 18.0% Telecommunication Services 5.5% 0.6% 34.5% Utilities Total 4.7% 1 00 . 0% -0.4% 1 13.6% 30 MSCI - ACWIxUS �, Weight Quarter Return I-Year Return Energy 11.2% -5.3% 37.5% Materials 12.9% -1.3% 40.1% Industrials 11.0% 0.1% 34.8% Consumer Discretionary 9.3% 6.9% 38.8% Consumer Staples 8.8% 7.4% 29.6% Health Care 6.3% 8.6% 27.6% Financials 24.5% -0.9% 24.9% Information Technology 6.2% -3.0% 19.2% Telecommunication Services 5.7% 1.5% 30.4% Utilities Total 4.1% 1 00 . 0% 0.3% I 14.6% 31.0% Hong Kong 2.7% 1.9% Country United Kingdom Weight 21.3% Weight 14.5% Q u a rter Return 1.7% I-Year Return 34.1% Japan 20.0% 13.7% 0.2% 13.2% France 10.5% 7.1% 5.3% 43.4% Germany 9.0% 6.2% 7.0% 47.0% Australia 8.6% 5.9% -0.6% 41.1% Switzerland 8.4% 5.7% 7.3% 33.2% Spain 3.6% 2.5% 2.1% 1 35.8% Sweden 3.1% 2.1% 0.8% 42.5% Italy 2.8% 1.9% -1.8% 31.0% Hong Kong 2.7% 1.9% -1.0% 26.0% Netherlands 2.5% 1.7% -4.2% 25.5% Singapore 1.7% 1.2% 2.0% 25.4% Denmark 1.1% 0.7% -6.4% 29.3% Finland 1.0% 0.7% -6.8% 27.5% Belgium 1.0% 0.7% 3.1% 25.5% Norway 0.9% 0.6% -1.1% 53.0% Israel 0.7% 0.5% -2.4% -6.9% Austria 0.3% 0.2% 2.1% 55.3% Portugal 0.3% 0.2% 1.5% 32.2% Ireland 0.3% 0.2% 7.6% 20.9% Greece 0.2% 0.2% 16.3% 3.0% New Zealand Total EAFE 0.1% 1 00 0.1% 11.4% 47.4% Countries Canada Total D - . 0% 1 8.0% 1 - 4.6% I 1 31.0% I China 4.1% -1.8% 12.7% Brazil 3.7% -4.0% 24.2% Korea 3.5% 0.9% 43.5% Taiwan 2.6% 1.7% 37.0% India 1.7% -3.6% 8.0% South Africa 1.7% -2.0% 36.5% Russia 1.6% -5.4% 45.4% Mexico 1.0% -0.6% 30.1% Malaysia 0.8% 3.6% 35.3% Indonesia 0.6% 8.0% 32.4% Chile 0.4% 8.8% 40.8% Poland 0.4% 4.2% 57.8% Thailand 0.4% -1.9% 43.4% Turkey 0.3% -3.9% 10.7% Colombia 0.2% 5.9% 33.2% Philippines 0.1% 3.3% 25.5% Peru 0.1% - 15.2% 7.3% Hungary 0.1% 1.7% 40.8% Czech Republic 1 0.1% 6.3% 40.2% Egypt 0.1% -1.2% -12.0% Morocco Total Emerging Countries 0.0% 23.7% 1 00 . 0% -1.2% I' 0 17.5% 3 0 .3 11 � THE Source: MSCI 9 [ r BQGDAHN ♦� GROUP. The Market Environment Domestic Credit Sector & Broad Market Maturity Performance Period Ended: June 30, 2011 ■ Domestic broad fixed income results were positive during the quarter. Within the broad benchmark's segments, the government, mortgage and corporate portions of the index all produced similarly positive results. The falling yields during the quarter were a benefit to all fixed income indices. However, Treasury inflation protected securities (TIPS) posted the strongest result with a return of 3.6 %. In contrast to the strength in TIPS, lower quality corporate issues, as represented by the high yield benchmark ( <BBB), posted a weaker, but still positive, return of 1.0% as lower quality credit spreads widened to reflect investor concerns over the strength of continued economic recovery. ■ The trailing one -year returns were solid for the various broad and sector -based fixed income indices. Unlike the most recent quarter, the one -year results also illustrate that investors were compensated for holding lower quality issues. This outperformance is attributable to a relatively narrow Treasury yield curve as well as credit compression driven by mild economic recovery and investors searching for yield. Quarter Performance AAA 2.2 AA 2.0 A 2.2 BBB 2.5% <BBB 1.0% Govt 2.3 TIPS 3.6% Mort 2.3 G /M /C = Broad Market (Government + Mortgage + Corporate) 0.0% 1 -3yr G /M /C 1 -5yr G /M /C 1 -10yr G /M /C 10 +yr G /M /C 1.6% 2.2 3.3% 1.0% 2.0% 3.0% 4.0% 1 -Year Performance AAA 3.3 AA 4.7 A 5.9 BBB 8.4% <BBB Govt 2.3 TIPS 7.7 Mort 3.9% 2.3 3.2% - 3.9% . 3.4% 15.4% 0.0% 5.0% 10.0% 15.0% 20.0% 1 -3yr G /M /C 1 -5yr G /M /C 1 -10yr G /M /C 10 +yr G /M /C THE Source: Bank of America /Merrill Lynch Index System 10 r BQGDAHN GROUP. The Market Environment Market Rate & Yield Curve Comparison Period Ended: June 30, 2011 ■ There was no action by the Fed on short -term rates during the quarter so the fed funds rate remained unchanged (targeted at 0.0% to 0.25 %). The real story of the quarter was the market's anticipation on the impact of the end of the Fed's $600 billion Treasury purchase program (QEII). Since this program represented a significant buyer of Treasury issuance, the general feeling was that rates would rise in anticipation of such a large buyer leaving the market. However, continued weak economic and employment data drove Treasury rates lower for most of the quarter before reversing their course in June. The 10 -year Treasury finished the quarter 29 basis points lower at a yield of 3.18 %. Most of these Treasury rate decreases flowed through to the performance of investment grade corporate issues as the BAA /10yr spread only widened by 14 basis points during the quarter. ■ Rates along the yield curve decreased for all maturities during the quarter. However, due to the steepness of the yield curve, the absolute differentials were greater for longer maturities. The average yield decrease for maturities of up to one -year was 7 bps while the average yield decrease for maturities beyond one - year was 33 bps. Source: Mortgage- X.com, US Department of Treasury & St. Louis Fed 11 1 -Year Trailing Market Rates Fed Funds Rate TED Spread 3 -Month Libor BAA/10vr Spread 10vr Treasury 10vr TIPS Jun -10 Sep -10 Dec -10 Mar -11 Jun -11 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Treasury Yield Curve 1 X6/30/2010 o 12/31/2010 X3/31/2011 X6/30/2011 1 1 me 3 me 6 me 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr THE r BQ GDAHN �-� G ROUP. The Market Environment The Equity Market (S &P 500) Recovery: An Update on Where We Stand Period Ended: June 30, 2011 ■ The SPX Index measures the daily price change in the S &P 500 (excluding dividends). The CBOE Volatility Index (VIX) is a measure of market expectations of near -term volatility conveyed by S &P 500 stock index option prices. It acts as a barometer of investor sentiment and market volatility. ■ After reaching a peak of 1,565.15 on 10/9/2007, the SPX fell to a low of 676.53 on 3/9/09. This drop of 888 points on the index represented a loss of 56.8% from its peak. As the chart illustrates, the market decline was coupled with a significant increase in market volatility as measured by the VIX. ■ From the 676.53 low on 3/9/2009, the SPX index has rose to 1,320.64 as of 6/30/2011. This 644.11 point gain from the low has represented a price return of 95.2 %. As would be expected, this equity market gain was coupled with a reduction in investor pessimism as the VIX decreased to a more historical level. ■ Despite a more than 95% gain since its low, the index remains 244.51 points or 18.5% below its price peak level. We call this phenomenon the "cruelty of math" in that a drop of more than 50% in value will require a gain in excess of 100% to reach the original level. ■ The last time we presented this annualized return chart (9/30/2009), the recovery data was much more grim. This chart illustrates the annualized return that the SPX will be required to post from its current level to reach its previous peak of 1,565.15. In order to put these numbers in a little more perspective, we have also included the original required annualized return data from the 9/30/2009 chart. SPX (S &P 500) Index Level 1.600 1,500 1,400 1,300 1,200 1,100 1,000 900 800 700 600 VIX Index Level 1,565.15 S &P 500 — vix 676.53 100 90 80 ,320.64 70 60 50 40 30 20 10 0 o� o� o� o° o .° 50% 40% 30% 20% 10% 0% F11111UQIILCU Jr^ 1ULU111 iuqu IICU LV IUCUAI IV /Z7/V/ IIIUUA PUCM 48.1% ❑ as of 913012009 ■as of 6/30/2011 21.7% 14.0% 8 9% 10.3% 5.8% 4.3% 2.9% 2.5% 5 .0% 72.1% I . I I i Source: Yahoo Finance THE 12 $QGDAHN �'� GROUP. The Market Environment "We Have a Plan" An Outline of the Fed's Exit Strategy Principles At its meeting on June 21 & 22, the Fed concluded an ongoing market debate by defining a set of "exit strategy principles" that outline how the Committee will eventually exit from its long- running, accommodative monetary policy. The following statement of principles was taken directly from the minutes of the June meeting (with emphasis added). ■ The Committee will determine the timing and pace of policy normalization to promote its statutory mandate of maximum employment and price stability. ■ To begin the process of policy normalization, the Committee will likely first cease reinvesting some or all payments of principal on the securities holdings in the System Open Market Account (SOMA). ■ At the same time or sometime thereafter, the Committee will modify its forward guidance on the path of the federal funds rate and will initiate temporary reserve - draining operations aimed at supporting the implementation of increases in the federal funds rate when appropriate. ■ When economic conditions warrant, the Committee's next step in the process of policy normalization will be to begin raising its target for the federal funds rate and from that point on, changing the level or range of the federal funds rate target will be the primary means of adjusting the stance of monetary policy During the normalization process, adjustments to the interest rate on excess reserves and to the level of reserves in the banking system will be used to bring the funds rate toward its target. ■ Sales of agency securities from the SOMA will likely commence sometime after the first increase in the target for the federal funds rate The timing and pace of sales will be communicated to the public in advance; that pace is anticipated to be relatively gradual and steady, but it could be adjusted up or down in response to material changes in the economic outlook or financial conditions. ■ Once sales begin, the pace of sales is expected to be aimed at eliminating the SOMA's holdings of agency securities over a period of three to five years, thereby minimizing the extent to which the SOMA portfolio might affect the allocation of credit across sectors of the economy. Sales at this pace would be expected to normalize the size of the SOMA securities portfolio over a period of two to three years. In particular, the size of the securities portfolio and the associated quantity of bank reserves are expected to be reduced to the smallest levels that would be consistent with the efficient implementation of monetary policy. ■ The Committee is prepared to make adjustments to its exit strategy if necessary in light of economic and financial developments.* There's always a catch THE 13 BOGDAHN GROUP. Winter Springs General Employees General Plan and Trust June 30, 2011 March 31, 2011 : $24,079,374 June 30, 2011 : $24,682,945 Segments Market Value Allocation Segments Market Value Allocation ■ Domestic Equity 12,427,546 51.6 ■ Domestic Equity 12,361,918 50.1 ■ International Equity 3,822,145 15.9 ■ International Equity 3,887,362 15.7 ■ Fixed Income 5,438,885 22.6 ■ Fixed Income 5,654,965 22.9 ■ Real Estate 2,069,315 8.6 ■ Real Estate 2,128,576 8.6 ■ Cash Equivalent 321,484 1.3 ■ Cash Equivalent 650,125 2.6 14 THE [ � BQ GDAHN `� G ROUP. Winter Springs General Employees General Plan and Trust June 30, 2011 March 31, 2011 : $24,079,374 ■ Dalton, Greiner, Hartman, Maher & Co ■ Lateef Asset Mgmt.Equity ■ Galliard Core Fixed Income ■ RBC Global (Voyageur) ■ Intercontinental Galliard TIPS ■ American Core Realty Fund ■ Receipt & Disbursement ■ Galliard Cash June 30, 2011 : $24,682,945 Market Value Allocation Market Value Allocation ($) (%) ($) (%) 6,408,094 26.6 ■ Dalton, Greiner, Hartman, Maher & Co. 6,408,076 26.0 6,203,237 25.8 ■ Lateef Asset Mgmt.Equity 6,359,882 25.8 4,387,658 18.2 ■ Galliard Core Fixed Income 4,568,825 18.5 3,822,145 15.9 ■ RBC Global (Voyageur) 3,887,362 15.7 1,406,763 5.8 ■ Intercontinental 1,450,464 5.9 1,069,559 4.4 Galliard TIPS 1,107,470 4.5 662,552 2.8 ■ American Core Realty Fund 678,112 2.7 87,251 0.4 ■ Receipt & Disbursement 196,439 0.8 32,116 0.1 ■ Galliard Cash 26,316 0.1 THE 15 , [ � BQGDAHN ♦� GROUP. Winter Springs General Employees General Plan and Trust Asset Allocation vs. Target Allocation As of June 30, 2011 June 30, 2011 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% 0.8% 0.7% -1.5% -0.5 0.8% 0.1% -1.4% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 0 Allocation Differences June 30, 2011 Market Value Allocation Target Domestic Large Cap Value Equity 6,408,076 26.0 25.0 Domestic Broad Cap Growth Equity 6,359,882 25.8 25.0 Foreign Equity 3,887,362 15.7 15.0 Broad Market Fixed Income 4,568,825 18.5 20.0 TIPS 1,107,470 4.5 5.0 Receipt & Disbursement 196,439 0.8 0.0 Galliard Cash 26,316 0.1 0.0 Real Estate 2,128,576 8.6 10.0 Total Fund 24,682,945 100.0 100.0 16 THE r BQ GDAHN `� G ROUP. Winter Springs General Employees General Plan and Trust Asset Allocation History As of June 30,2011 Asset Allocation History by Portfolio Total Domestic Equity 12,767.958 51.73 12,611,331 52.37 11,615,146 51.25 10,225,481 48.82 8.931968 48.80 Snow Capital Mgmt. Equity - 0.00 - 0.00 - 0.00 - 0.00 - 0.00 Dalton, Greiner, Hartman, Maher & Co. 6,408,076 25.96 6.408,094 26.61 5,886,361 25.97 5,209,926 24.87 -4.519.91 1 25.08 Lateef Asset Mgmt.Equity 6,359,882 25.77 6,203,237 25.76 5,728,785 25.27 5,015,554 23.94 4.342,057 23.73 Total International Equity 3,887,362 15.75 3,822,145 15.87 3,585,512 15.82 3,127,979 14.93 2,580,041 14.10 RBC Global (Voyageur) 3,887,362 15.75 3,822,145 15.87 3,585,512 15.82 3,127,979 14.93 2,580,041 14.10 Total Fixed Income 5,676,295 23.00 5,457,217 22.66 5,233,634 23.09 4,974,315 23.75 6,019,062 32.89 Galliard Core Fixed Income 4,568,825 18.51 4,387,658 18.22 4,209,236 18.57 3,995,403 19.07 5,072,689 27.72 Galliard TIPS 1,107,470 4.49 1,069,559 4.44 1,024,397 4.52 978,912 4.67 946,372 5.17 Total Real Estate 2,128,576 8.62 2,069,315 8.59 1,994,043 8.80 628,316 3.00 607,888 3.32 American Core Realty Fund 678,112 2.75 662,552 2.75 642,474 2.83 628316 3.00 607,888 3.32 Intercontinental 1,450,464 5.88 1,406,763 5.84 1,351,569 5.96 - 0.00 - 0.00 Receipt & Disbursement 196,439 0.80 87,251 0.36 193,800 0.86 1,958,745 9.35 141,924 0.78 Galliard Cash 26,316 0.11 32,116 0.13 43,716 0.19 32,112 0.15 20,502 0.11 Total Fund Portfolio 24,682,945 100.00 24,079,375 100.00 22,665,850 100.00 20,946,948 100.00 18,301,384 100.00 Asset Allocation History by Segment 100.0 80.0 e 60.0 0 c 40.0 d' 20.0 0.0 9/07 12/07 3/08 ■ Cash Equivalent 17 THE [ � BQ GDAHN G ROUP. 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 ■ Real Estate ■ Fixed Income ■ International Equity ■ Domestic Equity Winter Springs General Employees General Plan and Trust Financial Reconciliation Quarter to Date 1 Quarter Ending June 30, 2011 Total Domestic Equity 12,611,331 137,500 - - - 12,015 -1,554 46,028 - 13,332 12,767,958 Lateef Asset Mgmt.Equity 6,203,237 68,750 - - - -756 15,628 73,023 6,359,882 Dalton, Greiner, Hartman, Maher & Co. 6,408,094 68,750 - - - 12,015 -797 30,401 - 86,356 6,408,076 Total International Equity 3,822,145 41,250 - - - -744 - 24,711 3,887,362 RBC Global (Voyageur) 3,822,145 41,250 - - - -744 - 24,711 3,887,362 Total Fixed Income 5,457,217 99,300 - - -6,203 -89 4,065 122,006 5,676,295 Galliard Core Fixed Income 4,387,658 85,550 - - - - - 95,617 4,568,825 Galliard TIPS 1,069,559 13,750 - - -6,203 -89 4,065 26,388 1,107,470 Total Real Estate 2,069,315 - - -7,906 -5,547 - 33,006 39,709 2,128,576 American Core Realty Fund 662,552 - - -7,906 -1,936 - 8,763 16,640 678,112 Intercontinental 1,406,763 - - - -3,611 - 24,243 23,069 1,450,464 Receipt & Disbursement 87,251 - 272,250 685,092 - 282,324 -8,854 - 12,479 3 - 196,439 Galliard Cash 32,116 -5,800 - - - - - - 26,316 Total Fund Portfolio 24.079.375 - 685.092 - 290,231 - 32,619 - 14,866 83.101 173.093 24,682,945 M THE [ r BQ GDAHN `-� G ROUP. Total Domestic Equity Lateef Asset Mgmt.Equity Dalton, Greiner, Hartman, Maher & Co Total International Equity RBC Global (Voyageur) Total Fixed Income Galliard Core Fixed Income Galliard TIPS Total Real Estate American Core Realty Fund Intercontinental Receipt & Disbursement Galliard Cash Total Fund Portfolio Winter Springs General Employees General Plan and Trust Financial Reconciliation Fiscal Year to Date October 1, 2010 To June 30, 2011 10,225,481 830,000 - 5,015,554 415,000 - 5,209,926 415,000 - 3,127,979 263,919 - 3,127,979 263,919 - 4,974,315 567,700 - 3,995,403 484,700 - 978,912 83,000 - 628,316 1,300,000 - 628,316 - - - 1,300,000 - 1,958,745 - 2,958,319 2,020,331 32,112 -3,300 - 20.946,948 - 2.020.331 m - 59,686 -4,255 124,965 1,651,453 - - 26,861 -2,066 43,295 914,959 - - 32,825 -2,190 81,670 736,494 - - 14,919 -3,833 - 514,215 - - 14,919 -3,833 - 514,215 - -6,570 -338 12,360 128,828 - - - - 88,722 - -6,570 -338 12,360 40,107 - 22,541 - 15,469 - 81,528 156,742 - 22,541 -5,179 - 25,688 51,828 - - 10,290 - 55,840 104,914 - 794,454 -8,854 - 21,034 23 - - -2,497 - 2 - - 816,995 - 107,994 - 29,459 218.877 2,451,238 12,767,958 6,359,882 6,408,076 3,887,362 3,887,362 5,676,295 4,568,825 1,107,470 2,128,576 678,112 1,450,464 196,439 26,316 THE [ r BOGDAHN `-� G ROUP. Winter Springs General Employees General Plan and Trust Comparative Performance Trailing Returns As of June 30, 2011 Total Fund (Net) Total Fund Policy Difference All Public Plans -Total Fund Median Total Fund (New Mgrs) (Net) Total Fund Policy Difference All Public Plans -Total Fund Median Total Fund (Gross) Total Fund Policy Difference All Public Plans -Total Fund Median Total Fund (New Mgrs) (Gross) Total Fund Policy Difference All Public Plans -Total Fund Median 0.95 (59) 11.85 (38) 22.95 (21) 5.29 (33) 4.11 (83) 4.16 (74) 11/01/2000 1.35 (30) 13.24 (16) 23.52 (17) 5.58 (28) 5.07 (44) 3.57 (93) -0.40 -1.39 -0.57 -0.29 -0.96 0.59 1.09 11.47 20.97 4.85 4.89 4.90 0.95 (61) 12.02 (37) 22.78 (22) 5.25 (34) N/A 1.00 (80) 10/01/2007 1.35 (30) 13.24 (16) 23.52 (17) 5.58 (28) 5.07 (44) 2.32 (40) -0.40 -1.22 -0.74 -0.33 N/A -1.32 1.09 11.47 20.97 4.85 4.89 2.03 1.07 (53) 12.53 (26) 23.91 (16) 6.05 (21) 4.82 (54) 4.88 (51) 11/01/2000 1.35 (30) 13.24 (16) 23.52 (17) 5.58 (28) 5.07 (44) 3.57 (93) -0.28 -0.71 0.39 0.47 -0.25 1.31 1.09 11.47 20.97 4.85 4.89 4.90 1.06 (54) 12.53 (26) 23.53 (17) 5.93 (23) N/A 1.61 (65) 10/01/2007 1.35 (30) 13.24 (16) 23.52 (17) 5.58 (28) 5.07 (44) 2.32 (40) -0.29 -0.71 0.01 0.35 N/A -0.71 1.09 11.47 20.97 4.85 4.89 2.03 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 THE Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See 20 nnchmark history for details. A lTtT [ l7 4 Ro i u l p Winter Springs General Employees General Plan and Trust Comparative Performance Trailing Returns As of June 30, 2011 Total Equity Total Equity Policy Difference Total Domestic Equity Total Domestic Equity Policy Difference IM U.S. Large Cap Core Equity (SA +CF) Total International Equity MSCI EAFE Index Difference IM International Large Cap Value Equity (SA +CF) Total Fixed Income Total Fixed Policy Difference 0.36 16.56 (30) 11/01/2000 33.30 (86) 5.97 0.41 17.25 (94) 11/01 /2000 32.10 (97) 3.03 0.05 -0.69 1.20 2.94 0.27 (58) 16.79 (69) 31.87 (46) 6.75 (9) 0.03 (65) 18.68 (47) 32.37 (41) 395 (50) 0.30 -1.89 -0.50 2.80 0.49 18.29 31.26 3.94 0.67 (71) 15.79 (10) 38.24 (2) 3.09 (26) 1.83 (41) 12.36 (48) 30.93 (37) -1.30 (77) 1.16 3.43 7.31 4.39 1.61 12.18 29.45 0.63 2.30 2.60 5.43 6.33 2.17 1.88 3.99 6.27 0.13 0.72 1.44 0.06 3.87 2.78 1.09 4.27 (38) 3.31 (66) 0.96 3.82 2.37 (65) 1.96 (70) 0.41 3.19 6.28 6.45 0.17 Total Real Estate NCREIF Fund Index -Open End Diversified Core (EW) Difference 3.40 12.31 17.44 -8.06 4.74 14.38 20.61 -7.64 -1.34 -2.07 -3.17 -0.42 N/A 0.03 N/A 4.06 01/01/2001 1.79 3.71 (30) 11/01/2000 1.32 (86) 2.39 2.53 5.14 (94) 11/01 /2000 4.16 (97) 0.98 7.67 6.02 11/01/2000 6.04 0.02 -5.27 10/01/2007 -5.21 -0.06 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 B THE Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See 21 chma history for details. oG�Ai TtT l [ l7 4 Rou p Page Intentionally Left Blank THE 22 [� BOGDAHN ``� GROUP Winter Springs General Employees General Plan and Trust Comparative Performance Trailing Returns As of June 30, 2011 Dalton, Greiner, Hartman, Maher & Co. Russell 3000 Value Index Difference IM U.S. All Cap Value Equity (SA +CF) Lateef Asset Mgmt.Equity Russell 1000 Growth Index Difference IN U.S. Large Cap Growth Equity (SA +CF) RBC Global (Voyageur) MSCI EAFE Index Difference IM International Large Cap Value Equity (SA +CF) Galliard Core Fixed Income Barclays Capital Intermediate Aggregate Difference IM U.S. Intermediate Duration (SA +CF) Galliard TIPS Barclays Capital U.S. TIPS Difference IM U.S. TIPS (SA +CF) American Core Realty Fund American Core Realty Policy Difference IM U.S. Open End Private Real Estate (SA +CF) Intercontinental NCREIF Fund Index -Open End Diversified Core (EW) Difference IM U.S. Open End Private Real Estate (SA +CF) -0.86 (65) 15.19 (78) 28.95 (71) N/A 24.07 -0.68 (61) 17.28 (58) 29.13 (71) 2.66 (87) -0.18 25.03 -2.09 -0.18 N/A (12) -0.51 5.33 18.56 1.18 31.68 5.12 1.44 (25) 18.44 (56) 34.95 (40) 9.86 (5) 0.76 (45) 19.47 (42) 35.01 (40) 5.01 (40) 0.68 -1.03 -0.06 4.85 3.19 0.58 -3.81 18.88 33.34 4.27 (86) 0.67 (71) 15.79 (10) 38.24 (2) 3.09 (26) 1.83 (41) 12.36 (48) 30.93 (37) -1.30 (77) -1.16 3.43 (94) 7.31 6.92 4.39 6.91 1.61 12.18 29.45 0.63 7.05 2.17 (17) 1.99 (29) 4.96 (23) 6.72 (49) 2.17 (17) 1.88 (31) 3.99 (64) 6.27 (69) 0.00 0.11 -0.72 0.97 -5.97 0.45 2.00 1.45 (62) 4.24 0.03 6.69 14.38 2.85 (93) 5.08 (40) 7.07 (91) 4.41 (98) 3.66 (32) 5.13 (39) 7.74 (32) 5.28 (69) -0.81 -0.05 -0.67 -0.87 3.57 4.87 7.61 5.48 3.83 (75) 12.51 (88) 17.65 (75) -8.00 (51) 4.74 (45) 14.38 (38) 18.80 (55) -1.99 (1) -0.91 -1.87 -1.15 -6.01 4.47 13.89 18.92 -8.00 3.36 (85) 12.72 (62) N/A N/A 4.74 (45) 14.38 (38) 20.61 (37) -7.64 (37) -1.38 -1.66 N/A N/A 4.47 13.89 18.92 -8.00 N/A 26.72 (39) 05/01/2009 1.23 (90) 24.07 (71) N/A 2.65 4.24 25.03 N/A 3.34 (12) 10/01/2007 5.33 (43) 1.18 (39) N/A 2.16 4.96 0.52 N/A -3.59 (48) 11 /01 /2007 1.96 (70) -5.49 (76) N/A 1.90 3.19 -3.81 N/A 5.73 (86) 10/01/2007 6.39 (66) 6.17 (70) N/A -0.44 6.58 6.44 N/A 6.41 (94) 10/01/2007 6.92 (66) 6.91 (64) N/A -0.50 7.05 7.08 N/A -5.22 (40) 10/01/2007 N/A -0.19 (2) N/A -5.03 -0.72 -5.97 N/A 12.72 (62) 10/01/2010 0.03 (36) 14.38 (38) N/A -1.66 -0.72 13.89 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 THE Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See 2 nchmark history for details. B oG�Ai lTtT [ l7 4 Ro i u l p Winter Springs General Employees General Plan and Trust Comparative Performance Fiscal Year Returns As of June 30, 2011 Total Fund (Net) 11.85 (38) 10.92 (28) 0.73 (59) -16.82 (91) 13.03 (75) 7.89 (65) 11.07 (66) Total Fund Policy 13.24 (16) 9.13 (75) 0.33 (63) -12.11 (31) 11.97 (88) 9.55 (32) 10.76 (69) Difference -1.39 1.79 0.40 -4.71 1.06 -1.66 0.31 All Public Plans -Total Fund Median 11.47 10.00 1.29 -13.67 14.40 8.64 12.54 Total Fund (New Mgrs) (Net) 12.02 (37) 10.66 (34) 0.68 (59) -16.82 (91) N/A N/A N/A Total Fund Policy 13.24 (16) 9.13 (75) 0.33 (63) -12.11 (31) 11.97 (88) 9.55 (32) 10.76 (69) Difference -1.22 1.53 0.35 -4.71 N/A N/A N/A All Public Plans -Total Fund Median 11.47 10.00 1.29 -13.67 14.40 8.64 12.54 Total Fund (Gross) 12.53 (26) 11.71 (16) 1.44 (48) -16.46 (89) 13.92 (59) 8.62 (51) 11.82 (60) Total Fund Policy 13.24 (16) 9.13 (75) 0.33 (63) -12.11 (31) 11.97 (88) 9.55 (32) 10.76 (691 Difference -0.71 2.58 1.11 -4.35 1.95 -0.93 1.06 All Public Plans -Total Fund Median 11.47 10.00 1.29 -13.67 14.40 8.64 12.54 Total Fund (New Mgrs) (Gross) 12.53 (26) 11.40 (21) 1.39 (49) -16.46 (89) N/A N/A N/A Total Fund Policy 13.24 (16) 9.13 (75) 0.33 (63) -12.11 (31) 11.97 (88) 9.55 (32) 10.76 (69) Difference -0.71 2.27 1.06 -4.35 N/A N/A N/A All Public Plans -Total Fund Median 11.47 10.00 1.29 -13.67 14.40 8.64 12.54 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 B THE Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. oG�Ai TtT l [ l7 4 Rou p Winter Springs General Employees General Plan and Trust Comparative Performance Fiscal Year Returns As of June 30, 2011 Total Equity Total Equity Policy Difference Total Domestic Equity Total Domestic Equity Policy Difference IM U.S. Large Cap Core Equity (SA +CF) Total International Equity MSCI EAFE Index Difference IM International Large Cap Value Equity (SA +CF) Total Fixed Income Total Fixed Policy Difference Total Real Estate NCREIF Fund Index -Open End Diversified Core (EW) Difference IM U.S. Open End Private Real Estate (SA +CF) 16.56 9.27 13.61 0.64 -1.09 1.88 -25.61 9.69 18.52 5.33 17.25 1.75 9.34 -3.52 -6.91 12.31 (89) -21.98 -32.42 (39) 16.44 N/A -0.69 6.97 (48) 4.27 3.18 (51) 5.82 -2.07 -3.63 2.77 2.08 N/A 16.79 (69) 14.19 (7) -4.29 (36) -21.66 (63) 17.58 (43) 18.68 (47) 10.96 (31) -6.91 (62) -21.98 (68) 16.44 (60) -1.89 3.23 2.62 0.32 1.14 18.29 9.50 -5.90 -20.48 16.98 15.79 (10) 11.69 (12) 11.87 (22) -39.55 (100) 23.63 (57) 12.36 (48) 3.71 (63) 3.80 (60) -30.13 (71) 25.38 (41) 3.43 7.98 8.07 -9.42 -1.75 12.18 4.78 4.99 -27.55 24.23 2.60 9.27 10.53 0.64 4.96 1.88 7.52 9.69 4.16 5.33 0.72 1.75 0.84 -3.52 -0.37 12.31 (89) 2.71 (78) -32.42 (39) 4.72 (37) N/A 14.38 (38) 6.97 (48) -35.19 (54) 3.18 (51) 18.21 (56) -2.07 -4.26 2.77 1.54 N/A 13.89 6.60 -33.41 3.23 18.53 10.83 N/A 15.40 19.66 (60) 12.51 N/A 14.30 19.98 -1.68 1.10 9.29 (67) 13.77 (63) 10.79 (48) 12.25 (78) -1.50 1.52 10.75 15.13 19.84 (68) 26.83 (50) 19.65 (71) 26.32 (: 0.19 0.51 20.96 26.81 3.27 2.81 3.55 2.80 -0.28 0.01 N/A N/A 17.45 (55) 19.66 (60) N/A N/A 18.08 19.98 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 THE Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See 2 nchmark history for details. B oG�Ai lTtT [ l7 4 Ro i u l p Page Intentionally Left Blank THE 26 [� BOGDAHN ``� GROUP Winter Springs General Employees General Plan and Trust Comparative Performance Fiscal Year Returns As of June 30, 2011 Dalton, Greiner, Hartman, Maher & Co. Russell 3000 Value Index Difference IM U.S. All Cap Value Equity (SA +CF) Lateef Asset Mgmt.Equity Russell 1000 Growth Index Difference IM U.S. Large Cap Growth Equity (SA +CF) RBC Global (Voyageur) MSCI EAFE Index Difference IM International Large Cap Value Equity (SA +CF) Galliard Core Fixed Income Barclays Capital Intermediate Aggregate Difference IM U.S. Intermediate Duration (SA +CF) Galliard TIPS Barclays Capital U.S. TIPS Difference IM U.S. TIPS (SA +CF) American Core Realty Fund American Core Realty Policy Difference IM U.S. Open End Private Real Estate (SA +CF) Intercontinental NCREIF Fund Index -Open End Diversified Core (EW) Difference IM U.S. Oven End Private Real Estate (SA +CF) 15.19 (78) 16.63 (10) N/A N/A N/A N/A N/A 17.28 (58) 9.15 (68) -10.79 (93) -22.70 (77) 13.73 (75) 14.55 (19) 16.78 (61) -2.09 7.48 N/A N/A N/A N/A N/A 18.56 10.64 -3.68 -19.93 16.74 10.34 20.20 18.44 (56) 11.93 (42) 0.53 (21) -15.13 (16) N/A N/A N/A 19.47 (42) 12.65 (35) -1.85 (37) -20.88 (52) 19.35 (57) 6.04 (57) 11.60 (71) -1.03 -0.72 2.38 5.75 N/A N/A N/A 18.88 11.24 -3.17 -20.56 20.19 6.75 14.23 15.79 (10) 11.69 (12) 11.87 (22) N/A N/A N/A N/A 12.36 (48) 3.71 (63) 3.80 (60) -30.13 (71) 25.38 (41) 19.65 (71) 26.32 (58) 3.43 7.98 8.07 N/A N/A N/A N/A 12.18 4.78 4.99 -27.55 24.23 20.96 26.81 1.99 (29) 9.63 (17) 12.08 (41) -1.68 (94) N/A N/A N/A 1.88 (31) 7.52 (78) 9.69 (81) 4.16 (34) 5.33 (69) 3.84 (59) 2.23 (41) 0.11 2.11 2.39 -5.84 N/A N/A N/A 1.45 8.26 11.48 3.22 5.48 3.91 2.09 5.08 (40) 7.28 (95) 3.97 (89) 7.72 (17) N/A N/A N/A 5.13 (39) 8.89 (78) 5.67 (66) 6.20 (63) 4.97 (65) 1.91 (85) 5.32 (47) -0.05 -1.61 -1.70 1.52 N/A N/A N/A 4.87 9.35 6.18 6.50 5.11 2.14 5.26 12.51 (88) 2.71 (78) -32.42 (39) 4.72 (37) N/A N/A N/A 14.38 (38) 5.84 (56) -22.09 (6) 5.27 (26) N/A N/A N/A -1.87 -3.13 -10.33 -0.55 N/A N/A N/A 13.89 6.60 -33.41 3.23 18.53 18.08 19.98 12.72 (62) N/A N/A N/A N/A N/A N/A 14.38 ( S) 6.97 (48) -35.19 (54) 3.18 (51) 18.21 (56) 17.45 (55) 19.66 (60) -1.66 N/A N/A N/A N/A N/A N/A 13.89 6.60 -33.41 3.23 18.53 18.08 19.98 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 B THE Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. oG�Ai TtT l [ l7 4 Rou p Winter Springs General Employees General Plan and Trust Total Fund (Gross) June 30, 2011 Market Value Capital Market Value Net As of Transfers Contributions Distributions Fees Expenses Income Apprec./ As of 04/01/2011 Deprec. 06/30/2011 Total Fund (Gross) 24,079 685 -290 -33 -15 83 173 24,683 Market Value Capital Market Value As of Net Contributions Distributions Fees Expenses Income Apprec./ As of 10/01/2010 Transfers Deprec. 06/30/2011 Tot�il Fund (Gros) 20,947 2,020 -817 -108 -29 219 2,451 24,683 35.00 30.00 25.00 20.00 c � 15.00 10.00 5.00 0.00 -5.00 nor M $ 170.0 $160.0 - $150.0 $140.0 $130.0 $120.0 $110.0 $165.6 $151.2 I Oct -2010 1 2 3 4 5 Quarter Jun -2011 Year Years Years Years Years ■ Total Fund (Gross) 1.07 (54) 12.53 (27) 23.91 (17) 18.40 (17) 6.05 (21) 2.15 (61) 4.82 (54) • Total Fund Policy 1.35 (30) 13.24 (16) 23.52 (17) 16.88 (45) 5.58 (28) 2.76 (38) 5.07 (44) \ledian 1.09 11.47 20.97 16.71 4.85 2.39 4.89 $100.0 $90.0 $80.0 $70.0 2/01 6/02 12/03 6/05 12/06 6/08 12/09 6/11 Total Fund (Gross) - Total Fund Policy 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2011 Dec -2010 Sep -2010 Jun -2010 Mar -2010 Dec -2009 Total Fund (Gross) 4.92 (9) 6.12 (53) 10.11(12) - 6.15(65) 4.50 (14) 3.45 (48) Total Fund Policy 4.31 (36) 7.11 (18) 9.08(37) - 6.63(79) 3.63 (64) 3.40 (51) All Public Plans -Total Fund Median 4.10 6.21 8.74 -5.82 3.82 3.41 THE 0- 28 , [ BQGDAHN `� GxouP. Winter Springs General Employees General Plan and Trust Total Fund (Gross) June 30, 2011 15.0 e �- 10.0 V 5.0 0.0 -5.0 F 10.0 6.00 Over Performance 0 0 0 Under Performance -9.0 -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 Total Fund Policy ( %) 0-1 Under Performance A Sep -2006 Jun -2011 c ° 3.00 0.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 Risk (Standard Deviation %) Return Standard Deviation ■ Total Fund (Gross) 6.05 15.85 • Total Fund Policy 5.58 14.33 - Median 4.85 14.78 0.00 Tracking Up Down Information c 25.00 Downside Error L 50.00 1 Market 40 0 40 0 • • Risk • Capture 6 ■ ■ Z 75.00 2.66 107.83 106.02 0.08 0.26 a 1.09 10.41 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 0.42 1.00 9/06 3/07 9/07 3/08 9;08 3/09 9/09 3/10 9/10 3/11 6/11 Total Period 5 -25 25- Median Median -75 75 -95 Error Count Count Count Count ■ Total Fund (Gross) 20 1(5%) 5 (25 %) 8(40%) 6(30%) • Total Fund Policy 20 0(0 %) 9 (45 %) 10(50 %) 1 (5 %) -6.00 e c � 4.00 2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 Risk (Standard Deviation %) Return Standard Deviation ■ Total Fund (Gross) 4.82 13.18 • Total Fund Policy 5.07 11.83 - Median 4.89 12.25 14.00 16.00 Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund (Gross) 2.66 107.83 106.02 0.08 0.26 0.42 1.09 10.41 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 0.42 1.00 9.24 Hist Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Fund (Gross) 2.58 107.55 114.11 -0.61 -0.03 0.27 1.10 8.59 Total Fund Policy 0.00 100.00 100.00 0.00 N/A 0.31 1.00 7.53 PN THE 29 [ r BQGDAHN \� GxouP. Winter Springs General Employees General Plan and Trust Total Domestic Equity June 30, 2011 Market Value Capital Market Value Net As of Transfers Contributions Distributions Fees Expenses Income Apprec./ As of 04/01/2011 Deprec. 06/30/2011 Total Domestic Equity 12,611 138 -12 -2 46 -13 12,768 Market Value Net Capital Market Value As of Contributions Distributions Fees Expenses Income Apprec./ As of 10/01/2010 Transfers Deprec. 06/30/2011 Total Domestic Equity 10,225 830 -60 -4 125 1,651 12,768 40.00 30.00 20.00 a 10.00 0.00 -10.00 I Oct -2010 1 2 3 4 5 Quarter Jun -o Year Years Years Years Years ■ Total Domestic Equity 0.27 (58) 16.79 (69) 31.87 (46) 24.24 (22) 6.75 (9) 0.66 (38) 4.27 (38) • Total Domestic Equity Policy -0.03 (65) 18.68 (47) 32.37 (41) 23.39 (33) 3.95 (50) -0.61 (64) 3.31 (66) \ledian 0.49 18.29 31.26 22.27 3.94 0.10 3.82 $160.0 $150.0 $140.0 $130.0 $120.0 $110.0 $100.0 $90.0 $80.0 $70.0 $60.0 $50.0 S149.1 $124.2 2/01 6/02 12/03 6/05 12/06 6/08 12/09 6/11 Total Domestic Equity Total Domestic Equity Policy 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2011 Dec -2010 Sep -2010 Jun -2010 Mar -2010 Dec -2009 Total Domestic Equity 6.86 (36) 8.99(88) 12.92(10) - 10.12(20) 5.72 (33) 6.43 (31) Total Domestic Equity Policy 6.38 (47) 11.59(29) 11.53(33) - 11.32(45) 5.94 (25) 5.90 (49) IM U.S. Large Cap Core Equity (SA +CF) 6.29 10.89 11.02 -11.46 5.25 5.87 THE r 30 BQ GDAHN `� G ROUP. Winter Springs General Employees General Plan and Trust Total Domestic Equity June 30, 2011 20.0 I L' 10.0 w 0.0 E Q -10.0 Over Performance Under Performance F -20.0 ?0.0 -I0.0 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 Total Domestic Equity Policy ( %) 0-1 Under Performance A Sep -2006 Jun -2011 6.00 e e 0.00 -6.00 6.00 9.00 12.00 15.00 18.00 21.00 24.00 27.00 30.00 Risk (Standard Deviation %) Return Standard Deviation ■ Total Domestic Equity 6.75 23.28 • Total Domestic Equity Policy 3.95 23.40 - Median 3.94 22.80 0.00 Tracking Up Down Information Sharpe Downside 25.00 Market Market Alpha ■ Ratio Beta Risk L 50.00 Capture • • c .' 75.00 Total Domestic Equity • 106.18 96.91 2.75 0.69 0.39 1.02 100.00 Total Domestic Equity Policy 0.00 100.00 100.00 9/06 3/07 9/07 3/08 9'08 3/09 9/09 3/10 9/10 3/11 6/11 Hist Total Period 5 -25 25- Median Median -75 75 -95 Information Count Count Count Count ■ Total Domestic Equity 20 1(5%) 8 (40 %) 7(35 %) 4(20%) • Total Domestic Equity Policy 20 0(0%) 1 (5 %) 17(85%) 2(10%) e 6.00 3.00 0.00 .00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 Risk (Standard Deviation %) Return Standard Deviation ■ Total Domestic Equity 4.27 19.47 • Total Domestic Equity Policy 3.31 19.35 - Median 3.82 18.93 31 THE [ 0- BQ GDAHN `� GxouP. Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Domestic Equity 4.17 106.18 96.91 2.75 0.69 0.39 1.02 15.88 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 N/A 0.27 1.00 15.70 Hist Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Domestic Equity 4.53 100.52 95.98 1.03 0.23 0.21 1.00 13.45 Total Domestic Equity Policy 0.00 100.00 100.00 0.00 N/A 0.16 1.00 13.35 31 THE [ 0- BQ GDAHN `� GxouP. Winter Springs General Employees General Plan and Trust Lateef Asset Mgmt.Equity June 30, 2011 Market Value Capital Market Value Net As of Transfers Contributions Distributions Fees Expenses Income Apprec./ As of 04/01/2011 Deprec. 06/30/2011 Lateef Asset Mgmt.Equity 6,203 69 -1 16 73 6,360 Market Value Capital Market Value As of et Contributions Distributions Fees Expenses Income Apprec./ As of 10/01/2010 Transfers Deprec. 06/30/2011 Lmeefi\sset \4gmtEquiri 5,016 415 4, 915 6,360 50.00 40.00 30.00 c e 20.00 10.00 0.00 -10.00 r0 rt � � w $120.0 $110.0 $100.0 $90.0 $80.0 $70.0 $60.0 I Oct -2010 1 2 3 4 5 $50.0 Quarter Jun -o Year Years Years Years Years ■ Lateef Asset Mgmt.Equity 1.44 (25) 18.44 (55) 34.95 (40) 23.66 (41) 9.86 (5) N/A N/A • Russell 1000 Growth Index 0.76 (46) 19.47 (43) 35.01 (40) 23.85 (39) 5.01 (40) 2.16 (45) 5.33 (43) :Median 0.58 18.88 33.34 22.69 4.27 1.76 4.96 Lateef Asset Mgmt.Equity Russell 1000 Growth Index $113.1 104.5 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2011 Dec -2010 Sep -2010 Jun -2010 Mar -2010 Dec -2009 Lateef Asset Mgmt.Equity 6.57 (30) 9.55(84) 13.95(26) - 11.88(56) 5.33 (33) 5.83 (76) Russell 1000 Growth Index 6.03 (46) 11.83(49) 13.00(38) - 11.75(53) 4.65 (52) 7.94 (29) IM U.S. Large Cap Growth Equity (SA +CF) 5.84 11.78 12.27 -11.63 4.71 6.99 THE 32 L 0- BQGDAHN GROUP. 11/07 6/08 3/09 12/09 9/10 6/11 Winter Springs General Employees General Plan and Trust Lateef Asset Mgmt.Equity June 30, 2011 i F 9.0 6.0 3.0 u y 0.0 -3.0 .� -6.0 Over O Perforrnaece Under Performance -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 Russell 1000 Growth Index ( %) Ocar Peilbrmenm 0 Sep -2006 * Jun -2011 12.00 6.00 c 0.00 -6.00 >.00 12.00 15.00 18.00 21.00 24.00 27.00 30.00 Risk (Standard Deviation %) Return Standard Deviation ■ Lateef Asset Mgmt.Equity 9.86 20.76 • Russell 1000 Growth Index 5.01 23.61 \4edian 4.27 23.57 0.00 Tracking Up Down c Sharpe Downside Error Market Market ■ 25.00 Ratio Beta Risk Capture • L 50.00 • • . 40 • 4 o: c • • • • 97.32 80.71 5.13 75.00 0.57 0.87 12.48 Russell 1000 Growth Index 0.00 100.00 100.00 0.00 100.00 0.32 1.00 15.55 9/06 3/07 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 6/11 Information Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count ■ Lateef Asset MgmtEquity 4 4(100%) 0 (0 %) 0(0 %) 0(0%) • Russell 1000 Groh th Index 20 0(0%) 7 (35 %) 11 (55%) 2 (10%) 9.00 6.00 c e 3.00 0.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 Risk (Standard Deviation %) Return Standard Deviation ■ Lateef AssetMgmt.Equity N/A N/A • Russell 1000 Growth Index 5.33 19.37 - Median 4.96 19.59 Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Lateef A-et \4gmtGquin 5.97 97.32 80.71 5.13 0.69 0.57 0.87 12.48 Russell 1000 Growth Index 0.00 100.00 100.00 0.00 N/A 0.32 1.00 15.55 Hist Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Lateef Asset 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 0.27 1.00 13.17 THE 33 [ 0- BQGDAHN \� GxoUP. Page Intentionally Left Blank THE 34 [� BOGDAHN ``� GROUP Winter Springs General Employees General Plan and Trust Dalton, Greiner, Hartman, Maher & Co. June 30, 2011 Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec./ As of 04/01/2011 Deprec. 06/30/2011 Dalton, Greiner, I larnnan. Maher & Co. 6,408 69 -12 -1 30 -86 6,408 Market Value Capital Market Value Net As of Transfers Contributions Distributions Fees Expenses Income Apprec./ As of 10/01/2010 Deprec. 06/30/2011 Dalton, Greiner, Hartman, Maher & Co. 5,210 415 -2 S2 736 6,408 50.00 40.00 30.00 v 20.00 10.00 0.00 -10.00 $160.0 $150.0 $140.0 $130.0 S1 1 0.0 $110.0 $100.0 $156.2 $151.8 THE 35 , [ 0- BQGDAHN ♦� G ROUP. I Oct -2010 1 2 3 4 5 1 Quarter Jun -o Year Years Years Years Years 8/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 ■ Dalton, Greiner, Hartman, Maher & Co. -0.86(64) 15.19 (78) 28.95 (70) 24.98 (42) N/A N/A N/A • Russell 3000 Value Index -0.68(62) 17.28 (58) 29.13 (70) 23.21 (65) 2.66 (86) -3.25 (91) 1.23 (88) Dalton, Greiner, Hartman, Maher & Co. Russell 3000 Value Index :Median - 0.51 18.56 31.68 24.52 5.12 - 0.43 4.24 C omparative 1 Performan 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2011 Dec -2010 Sep -2010 Jun -2010 Mar -2010 Dec -2009 Dalton, Greiner, Hartman, Maher & Co. 7.13 (37) 8.45(89) 11.94(28) - 8.39(18) 6.12 (59) 7.17(8) Russell 3000 Value Index 6.47 (45) 10.92(58) 10.10(67) - 11.09(61) 7.05 (42) 4.17 (76) IM U.S. All Cap Value Equity (SA +CF) 6.34 11.38 10.75 -10.66 6.41 5.08 THE 35 , [ 0- BQGDAHN ♦� G ROUP. Winter Springs General Employees General Plan and Trust Total International Equity June 30, 2011 Market Value Capital Market Value Net As of Transfers Contributions Distributions Fees Expenses Income Apprec./ As of 04/01/2011 Deprec. 06/30/2011 Total International Equity 3,822 41 -1 25 3,887 Market Value Capital Market Value As of Net Contributions Distributions Fees Expenses Income Apprec./ As of 10/01/2010 Transfers Deprec. 06/30/2011 Total International Equity 3,128 264 - - -IS -4 - 514 3,887 40.00 O.nO c 20.00 a 1 0.00 0.00 -10.00 5200.0 $180.0 $160.0 $140.0 $120.0 $100.0 $80.0 $164.2 $155.0 THE 36 L � BQ GDAHN `� G ROUP. 1 Oct -2010 1 2 3 4 5 $60.0 I Quarter Juno Year Years Years Years Years ■ Total International Equity 0.67 (71) 15.79 (11) 38.24(2) 28.16 (1) 3.09 (26) -3.36 (67) 2.37 (65) 2/01 6/02 12/03 I I 6/05 12/06 6/08 12/09 6/11 • MSCI EAFE Index 1.83 (41) 12.36 (48) 30.93 (38) 18.01 (57) -1.30(77) -3.59 (70) 1.96 (70) Total International Equity MSCI EAFE Index :Median 1.61 12.18 29.45 18.70 0.63 -2.28 3.19 C omparative 1 Performan 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2011 Dec -2010 Sep -2010 Jun -2010 Mar -2010 Dec -2009 Total International Equity 4.69 (21) 9.87(5) 19.39(6) - 12.31(51) 5.07 (3) 1.54 (66) MSCI EAFE Index 3.45 (55) 6.65 (55) 16.53(34) - 13.75(81) 0.94 (65) 2.22 (54) IM International Large Cap Value Equity (SA +CF) 3.55 6.73 15.75 -12.27 1.69 2.32 THE 36 L � BQ GDAHN `� G ROUP. Winter Springs General Employees General Plan and Trust Total International Equity June 30, 2011 30.0 'c 20.0 W 10.0 0 0.0 t -10.0 o -20.0 F Over Performance 0 J Under Performance -'a.o -la.a 0.0 10.0 20.0 30.0 MSCI EAFE Index (% Over Pell iirmanm Under Performance A Sep -2006 Jun -2011 10.00 e 5.00 c 0.00 -5.00 15.00 18.00 21.00 24.00 27.00 30.00 33.00 36.00 39.00 Risk (Standard Deviation %) Return Standard Deviation ■ Total International Equity 3.09 35.15 • MSCI EAFE Index -1.30 29.31 - Median 0.63 27.58 0.00 c 25.00 . 50.00 e: c 75.00 100.00 9/06 3/07 9/07 3/08 9/08 3/09 9109 3/10 9/10 3/11 6/11 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count ■ Total International Equity 20 0(0 %) 2 (10 %) 8(40 %) 10(50 %) • \IS( ILAILIndex 20 0 (0 %) 2 (10 %) 17(85 %) 1(5 %) 8.00 4.00 c e 0.00 4.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 Risk (Standard Deviation %) Return Standard Deviation ■ Total International Equity 2.37 28.79 • MSCI EAFE Index 1.96 23.80 - Median 3.19 22.65 Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total International Equity 8.37 116.55 100.74 5.57 0.68 0.24 1.14 21.66 \IS( I GAPElndex 0.00 100.00 100.00 0.00 N/A 0.06 1.00 18.91 Hist Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total International Equity 7.92 107.34 103.52 0.82 0.16 0.15 1.11 18.24 MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.11 1.00 15.78 THE 37 , [ 0- BQGDAHN `� GxouP. Winter Springs General Employees General Plan and Trust RBC Global (Voyageur) June 30, 2011 Market Value Capital Market Value Net As of Transfers Contributions Distributions Fees Expenses Income Apprec./ As of 04/01/2011 Deprec. 06/30/2011 RBC Global (Voyageur) 3,822 41 -1 25 3,887 Market Value Capital Market Value As of Net Contributions Distributions Fees Expenses Income Apprec./ As of 10/01/2010 Transfers Deprec. 06/30/2011 RBC Global (Voyageur) 3,128 X64 5 -4 514 3,887 40.00 30.00 c 20.00 10.00 0.00 -10.00 $100.0 $90.0 $80.0 $70.0 $60.0 $50.0 $97.4 $86.0 THE 38 L r BQGDAHN `� GROUP. Oct -2010 $40.0 1 1 2 3 4 5 Quarter Jun-2011 Year Years Years Years Years ■ RBC Global (Voyageur) 0.67 (71) 15.79 (11) 38.24(2) 28.16 (1) 3.09 (26) N/A N/A 2/08 9/08 6/09 3/10 12/10 6/11 • MSCI EAFE Index 1.83 (41) 12.36 (48) 30.93 (38) 18.01 (57) -1.30(77) -3.59 (70) 1.96 (70) RBC Global (Voyageur) MSCI EAFE Index :Median L61 12.18 29.45 18.70 0.63 -2.28 3.19 C om parative I Performan 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2011 Dec -2010 Sep -2010 Jun -2010 Mar -2010 Dec -2009 RBC Global (Voyageur) 4.69 (21) 9.87(5) 19.39(6) - 12.31(51) 5.07 (3) 1.54 (66) MSCI EAFE Index 3.45 (55) 6.65 (55) 16.53(34) - 13.75(81) 0.94 (65) 2.22 (54) IM International Large Cap Value Equity (SA +CF) 3.55 6.73 15.75 -12.27 1.69 2.32 THE 38 L r BQGDAHN `� GROUP. Winter Springs General Employees General Plan and Trust RBC Global (Voyageur) June 30, 2011 2.0 'm u 0.0 0.00 c 25.00 . 50.00 e: v .' 75.00 100.00 -2.0 o -4.0 V -6.0 -8.0 Over Performance Under Performance -8.0 -7.0 -6.0 -5.0 -4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 MSCI EAFE Index ( %) Or -cr Pcrlimnance 0 Sep -2006 * Jun -2011 10.00 e 5.00 c 0.00 -5.00 15.00 18.00 21.00 24.00 27.00 30.00 33.00 36.00 39.00 Risk (Standard Deviation %) Return Standard Deviation ■ RBC Global (Voyageur) 3.09 35.15 • MSCI EAFE Index -1.30 29.31 - Median 0.63 27.58 40 40 in 9/06 3/07 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 6/11 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count ■ RBC Global (Voyageur) 3 0(0%) 2 (67 %) 1(33 %) 0(0%) • MSCI EAFE Index 20 0(0%) 2 (10 %) 17(85%) 1 (5 %) 8.00 4.00 c e 0.00 4.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 Risk (Standard Deviation %) Return Standard Deviation ■ RBC Global (Voyageur) N/A N/A • MSCI EAFE Index 1.96 23.80 - Median 3.19 22.65 Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) 8.37 116.55 100.74 5.57 0.68 0.24 1.14 21.66 MSCI SAFE Index 0.00 100.00 100.00 0.00 N/A 0.06 1.00 18.91 Hist Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture RBC Global (Voyageur) N/A N/A N/A N/A N/A N/A N/A N/A MSCI EAFE Index 0.00 100.00 100.00 0.00 N/A 0.11 1.00 15.78 P N THE 39 [ r BQ GDAHN ♦� G ROUP. Winter Springs General Employees General Plan and Trust Galliard Core Fixed Income June 30, 2011 Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec./ As of 04/01/2011 Deprec. 06/30/2011 Galliard Core Fixed Income 4,388 86 96 4,569 Market Value Capital Market Value As of Net Contributions Distributions Fees Expenses Income Apprec./ As of 10/01/2010 Transfers Deprec. 06/30/2011 Galliard Core Fixed Income 3,995 485 89 4,569 12.00 10.00 8.00 v 6.00 4.00 2.00 0.00 S128.0 $124.0 $120.0 $116.0 $112.0 $108.0 $104.0 $100.0 $96.0 25.2 123.2 THE 40 BQ GDAHN `� G ROUP. I Oct -2010 1 2 3 4 5 1 Quarter Jun -o Year Years Years Years Years 11/07 6/08 3/09 12/09 9/10 6/11 ■ Galliard Core Fixed Income 2.17 (17) 1.99 (29) 4.96 (23) 8.47 (21) 6.72 (49) N/A N/A • Barclays Capital Intermediate Aggregate 2.17 (17) 1.88 (31) 3.99 (64) 6.33 (65) 6.27 (69) 6.49 (70) 6.39 (66) Galliard Core Fixed Income Barclays Capital Intermediate Aggregate Median 2.00 1.45 4.24 6.79 6.69 6.80 6.58 C omparative 1 Performan 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2011 Dec -2010 Sep -2010 Jun -2010 Mar -2010 Dec -2009 Galliard Core Fixed Income 0.88 (24) - 1.05(44) 2.92 (37) 2.63 (64) 3.01 (6) 0.76 (37) Barclays Capital Intermediate Aggregate 0.48 (69) - 0.75(28) 2.07 (89) 2.92 (46) 1.81 (56) 0.53 (59) IM U.S. Intermediate Duration (SA +CF) 0.60 -1.10 2.77 2.85 1.84 0.62 THE 40 BQ GDAHN `� G ROUP. Winter Springs General Employees General Plan and Trust Galliard Core Fixed Income June 30, 2011 It e v G m 6.0 0 U 5.0 V o,er Performanm O Q Under Performance 4.5 5.0 5.5 6.0 6.5 7.0 7.5 Barclays Capital Intermediate Aggregate (% ) ■ Over Performance ■ Under Performance . Sep -2006 ♦ 7.n -2011 8.00 e 6.00 e 4.00 2.00 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00 Risk (Standard Deviation %) Return Standard Deviation ■ Galliard Core Fixed Income 6.72 4.61 • Barclays Capital Intermediate Aggregate 6.27 2.60 - Median 6.69 3.68 0.00 2 25.00 . 50.00 c 75.00 100.00 9/06 3/01 9/07 3/08 ■ Galliard Core Fixed Income • Barclays Capital Intermediate Aggregate 8.40 7.00 c 5.60 4.20 1.80 2.10 2.40 2.70 3.00 3.30 3.60 3.90 4.20 4.50 4.80 5.10 5.40 5.70 Risk (Standard Deviation %) Return Standard Deviation ■ Galliard Core Fixed Income N/A N/A • Barclays Capital Intermediate Aggregate 6.39 2.74 - Median 6.58 3.49 41 THE [ r BQ GDAHN ♦� GxouP. Tracking Up Down 9/08 3/09 Information Sharpe 3/11 6/11 Downside 25- Median Error Market Market Alpha Ratio Ratio Beta Risk 0(0%) 2(50%) Capture Capture 12(60%) 0(0%) Galliard Core Fixed Income 2.64 112.98 129.50 0.39 0.17 1.43 1.01 2.69 Lim clav sCapital Intermediate Aggregate 0.00 100.00 100.00 0.00 N/A 1.73 1.00 1.55 Hist Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio 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 1.46 1.00 1.28 41 THE [ r BQ GDAHN ♦� GxouP. id 9/08 3/09 9/09 3/10 9/10 3/11 6/11 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count 4 0(0%) 2 (50 %) 0(0%) 2(50%) 20 0(0%) 8 (40 %) 12(60%) 0(0%) Winter Springs General Employees General Plan and Trust Galliard TIPS June 30, 2011 Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec./ As of 04/01/2011 Deprec. 06/30/2011 Galliard TIPS 1,070 14 -6 4 26 1,107 Market Value Capital Market Value As of Net Contributions Distributions Fees Expenses Income Apprec./ As of 10/01/2010 Transfers Deprec. 06/30/2011 Galliard TIPS 979 83 -7 12 40 1,107 17.00 12.00 10.00 e 8.00 6.00 4.00 2.00 � t � I Oct -2010 1 2 3 4 5 Quarter Jun -o Year Years Years Years Years ■ Galliard TIPS 2.85 (91) 5.08 (41) 7.07 (91) 7.68 (91) 4.41 (97) N/A N/A • Barclays Capital TIPS 3.66 (32) 5.13 (38) 7.74 (32) 8.63 (50) 5.28 (68) 7.65 (68) 6.92 (66) Median _" 4.87 7.61 8.63 5.48 7.76 7.05 $132.0 $129.0 $126.0 $123.0 $120.0 $117.0 $114.0 $111.0 $108.0 $105.0 $102.0 S99.0 596.0 Galliard TIPS - Barclays Capital TIPS 1 28.5 126.3 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2011 Dec -2010 Sep -2010 Jun -2010 Mar -2010 Dec -2009 Galliard TIPS 2.23 (30) - 0.05(18) 1.89 (96) 2.21(94) 0.68 (58) 2.32 (22) Barclays Capital TIPS 2.08 (56) - 0.65(37) 2.48 (72) 3.82 (61) 0.56 (73) 1.76 (87) IM U.S. TIPS (SA +CF) 2.11 -0.72 2.67 3.89 0.71 1.92 THE 42 [ 0- BQGDAHN \� GxouP. 11/07 6/08 3/09 12/09 9/10 6/11 Winter Springs General Employees General Plan and Trust Galliard TIPS June 30, 2011 M 7.0 e 6.0 F q 5.0 V 4.0 3.0 OA, I Perfo-ance A Under Performance Ir 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 Barclays Capital TIPS ( %) Under Perloiniance 0 Sep -2006 * Jun -2011 7.00 6.00 c e v 5.00 4.00 5.60 3.80 4.00 4.20 4.40 4.60 4.80 5.00 5.20 5.40 5.60 5.80 6.01 Risk (Standard Deviation %) Return Standard Deviation ■ Galliard TIPS 4.41 4.40 • Barclays Capital TIPS 5.28 5.36 - Median 5.48 4.92 0.00 Tracking Up Down Information 2 25.00 ' Downside Error c • Market Alpha Ratio Ratio Beta 50.00 Risk Capture C apture 75.00 3.17 71.88 64.89 0.70 -0.32 0.66 0.69 4.47 Barclays Capital TIPS 0.00 100.00 100.00 0.00 N/A 0.60 1.00 9/06 3/07 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 6/11 Total Period 5 -25 25- Median Median -75 75 -95 Error Count Count Count Count ■ Galliard TIPS 4 0(0%) 0 (0 %) 0(0 %) 4(100%) • Barclays( apitatl TIPS 20 0(0 %) 1 (5 %) 13(65 %) 6(30%) 8.00 7.20 c e v 6.40 5.60 80 4.00 4.20 4.40 4.60 4.80 5.00 5.20 5.40 5.6 Risk (Standard Deviation %) Return Standard Deviation ■ Galliard TIPS N/A N/A • Barclays Capital TIPS 6.92 5.33 - Median 7.05 5.11 Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture C apture Galliard TIPS 3.17 71.88 64.89 0.70 -0.32 0.66 0.69 4.47 Barclays Capital TIPS 0.00 100.00 100.00 0.00 N/A 0.60 1.00 6.03 Hist Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio 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 0.68 1.00 4.92 THE 43 [ � BQGDAHN \� GxouP. Winter Springs General Employees General Plan and Trust Total Real Estate June 30, 2011 Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec./ As of 04/01/2011 Deprec. 06/30/2011 Total Real Estate 1069 -8 -6 33 40 2,129 Market Value Net Capital Market Value As of Contributions Distributions Fees Expenses Income Apprec./ As of 10/01/2010 Transters Deprec. 06/30/2011 Tot<d Re<d Estme 628 X00 -23 15 82 157 2,129 40.00 30.00 20.00 c 10.00 0.00 -10.00 -20.00 $110.0 $105.0 $100.0 $95.0 $90.0 $85.0 $80.0 $75.0 $70.0 $65.0 31.8 THE 44 L 0- BQ GDAHN `� G ROUP. Oct -2010 $60.0 1 I To 1 2 3 4 5 r Quarter Jun Year Years Years Years Years 11/07 6/08 3/09 12/09 9/10 6/11 ■ Total Real Estate 3.40 (83) 12.31 (89) 17.44 (89) 2.11 (89) -8.06 (53) N/A N/A • NCREIF Fund Index -Open End Diersified Core (EW) v 4.74 (48) 14.38 (42) 20.61 (36) 6.49 (24) -7.64 (36) -3.95 (42) 0.03 (38) Total Real Estate NCREIF Fund Index - Open End Diversified Core (El) Medi<ut 4.47 13.89 18.92 5.27 - 8.00 - 4.30 - 0.72 C omparative 1 Performan 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2011 Dec -2010 Sep -2010 Jun -2010 Mar -2010 Dec -2009 Total Real Estate 4.39 (56) 4.05 (59) 4.56 (67) 3.25 (61) -0.67(77) - 4.23(68) NCREIF Fund Index -Open End Diversified Core (EW) 4.01 (71) 4.99 (30) 5.45 (54) 4.32 (31) 0.75 (45) - 3.48(53) IM U.S. Open End Private Real Estate (SA +CF) 4.49 4.50 5.90 3.46 0.68 -3.23 THE 44 L 0- BQ GDAHN `� G ROUP. Winter Springs General Employees General Plan and Trust Total Real Estate June 30, 2011 -7.0 e 2 W -9.0 2 -10.0 O F 11.0 Over Performance C A ■ Under Performance I -11.5 -11.0 -10.5 -10.0 -9.5 -9.0 -8.5 -8.0 -7.5 -7.0 NCREIF Fund lndex -Open End Diversified Core (EW) (% ) Over Pell iirmenm A Sep -2006 * Jun -2011 -4.00 e -8.00 c e -12.00 -16.00 0.00 c 25.00 . 50.00 e: O 75.00 100.00 9/06 3/07 9/07 3/08 9/08 3/09 9/09 3/10 9/10 3/11 6/11 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count ■ Total Real Estate 4 0(0%) 3 (75 %) 1 (25 %) 0 (0 %) • NCREIF Fund Index -Open End Diversified Core (EW) 20 0(0%) 14(70%) 6 (30 %) 0 (0 %) 2.00 0.00 c e -2.00 4.00 10.00 12.00 14.00 16.00 18.00 20.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 17.00 18.00 Risk (Standard Deviation % Risk (Standard Deviation %) Standard Standard Return Deviation Return Deviation ■ Total Real Estate -8.06 11.84 ■ Total Real Estate N/A N/A • NCREIF Fund Index - Open Lid Diversified Core (EW) -7.64 13.30 • NCREIF Fund Index -Open End Diversified Core (EW) 0.03 11.48 - Median -8.00 15.23 - Median -0.72 12.36 Hist Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Total Real Estate 3.06 78.26 92.56 -1.54 -0.21 -0.67 0.87 11.33 NCREIF Fund Index -Open End Diversified Core (EW) 0.00 100.00 100.00 0.00 N/A -0.55 1.00 12.31 Hist Tracking Up Down Information Sharpe Downside Market Market Alpha Beta Error Capture Capture Ratio Ratio Risk Total Real Estate N/A N/A N/A N/A N/A N/A N/A N/A NCREIF Fund Index -Open End Diversified Core (EW) 0.00 100.00 100.00 0.00 N/A -0.11 1.00 9.54 45 THE L 0- BQ GDAHN `� G ROUP. Winter Springs General Employees General Plan and Trust American Core Realty Fund June 30, 2011 Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec./ As of 04/01/2011 Deprec. 06/30/2011 American Core Realty Fund 663 -8 -2 9 17 678 Market Value Capital Market Value As of Net Contributions Distributions Fees Expenses Income Apprec./ As of 10/01/2010 Transfers Deprec. 06/30/2011 American Core Realty Fund 628 -23 5 26 52 678 40.00 30.00 20.00 L 0.00 -10.00 -20.00 $110.0 $105.0 $100.0 $95.0 $90.0 $85.0 $80.0 $75.0 $70.0 $65.0 S97.6 581.8 THE 46 L 0- BQGDAHN `� GROUP. 1 Oct -2010 1 2 3 4 5 1 Quarter Jun T Year Years Years Years Years 11/07 6/08 3/09 12/09 9 10 6.'11 ■ American Core Realty Fund 3.83 (71) 12.51 (89) 17.65 (71) 2.20 (89) -8.00(53) N/A N/A • NCREIF Property Index 3.94 (71) 12.39 (89) 16.73 (89) 7.24 (24) -2.56 (1) 0.26(6) 3.45 (7) American Core Realty Fund NCREIF Property Index \ledian 4.47 13.89 18.92 5.27 - 8.00 - 4.30 - 0.72 C omparative I Performan 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2011 Dec -2010 Sep -2010 Jun -2010 Mar -2010 Dec -2009 American Core Realty Fund 4.48 (53) 3.71 (74) 4.56 (67) 3.25 (61) - 0.67(77) - 4.23(68) NCREIF Property Index 3.36 (91) 4.62 (43) 3.86 (81) 3.31 (55) 0.76(45) - 2.11(20) IM U.S. Open End Private Real Estate (SA +CF) 4.49 4.50 5.90 3.46 0.68 -3.23 THE 46 L 0- BQGDAHN `� GROUP. Winter Springs General Employees General Plan and Trust American Core Realty Fund June 30, 2011 -2.0 e � -4.0 2 -6.0 0 U -10.0 Over Performance ❑ Under Performance -10.0 -9.0 -8.0 -7.0 -6.0 -5.0 -4.0 -3.0 -2.1 NCREIF Property Index ( %) 1 ider Performance . Sep -2006 * Jun -2011 e -5.00 c ' -10.00 - -15.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 Risk (Standard Deviation %) Return Standard Deviation ■ American Core Realty Fund -8.00 11.87 • NCREIF Property Index -2.56 8.87 - Median -8.00 15.23 0.00 c 25.00 . 50.00 e: i .' 75.00 100.00 9/06 3/07 9/07 3D8 Total Period ■ American Core Realty Fund 4 • NCREIF Property Index 20 3.00 e 0.00 e -3.00 9.08 3/09 9/09 3/10 9/10 3/11 6/11 5 -25 25- Median Median -75 75 -95 Count Count Count Count 0(0 %) 3 (75 %) 1 (25 %) 0(0 %) 11(55 %) 4 (20 %) 5 (25 %) 0(0%) 8.00 10.00 12.00 14.00 16.00 18.00 Risk (Standard Deviation %) Return Standard Deviation ■ American Core Realty Fund N/A N/A • NCREIF Property Index 3.45 7.94 - Median -0.72 12.36 Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio Ratio Beta Risk Capture Capture Americ<111 Core Re<ilta Fund 4.57 96.61 158.06 -4.68 -1.17 -0.67 1.26 11.33 V RGII Propem Index 0.00 100.00 100.00 0.00 N/A -0.29 1.00 7.41 Hist Tracking Up Down Information Sharpe Downside Error Market Market Alpha Ratio 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 0.23 1.00 5.74 THE 47 , L 0- BQGDAHN `� GROUP. Page Intentionally Left Blank THE 48 [� BOGDAHN ``� GROUP Winter Springs General Employees General Plan and Trust Intercontinental June 30, 2011 Market Value Net Capital Market Value As of Transfers Contributions Distributions Fees Expenses Income Apprec./ As of 04/01/2011 Deprec. 06/30/2011 Intel Continental 1,407 - - - -4 - 24 23 1,450 Market Value Net Capital Market Value As of Contributions Distributions Fees Expenses Income Apprec./ As of 10/01/2010 Transters Deprec. 06/30/2011 Intercontinental - X00 10 56 105 1,450 40.00 30.00 20.00 c 10.00 0.00 -10.00 -20.00 " � , j F�� r , r2 P" $116.0 $114.0 $112.0 $110.0 $108.0 $106.0 $104.0 $102.0 $100.0 THE 49 [ r BQ GDAHN `� G ROUP. I Oct -2010 1 2 3 4 5 $98.0 Quarter Jun T Year Years Years Years Years 11 /10 12/10 3/11 6/11 ■ Intercontinental 3.36 (83) 12.72 (59) N/A N/A N/A N/A N/A v • NCREIF Fund Index -Open End Diersified Core (EW) 4.74 (48) 14.38 (42) 20.61 (36) 6.49 (24) -7.64 (36) -3.95 (42) 0.03 (38) Intercontinental NCREIF Fund Index - Open End Diversified Core (El) \ledian 4.47 13.89 18.92 5.27 - 8.00 - 4.30 - 0.72 C omparative 1 Performan 1 1 1 1 1 1 Quarter Quarter Quarter Quarter Quarter Quarter Ending Ending Ending Ending Ending Ending Mar -2011 Dec -2010 Sep -2010 Jun -2010 Mar -2010 Dec -2009 Intercontinental 4.35 (59) 4.51 (50) N/A N/A N/A N/A NCREIF Fund Index -Open End Diversified Core (EW) 4.01 (71) 4.99 (30) 5.45 (54) 4.32 (31) 0.75 (45) - 3.48(53) IM U.S. Open End Private Real Estate (SA +CF) 4.49 4.50 5.90 3.46 0.68 -3.23 THE 49 [ r BQ GDAHN `� G ROUP. Winter Springs General Employees General Plan and Trust Benchmark History As of June 30,2011 Total Fund Jan -1976 S &P 500 Index Barclays Capital Aggregate MSCI EAFE Oct -2003 S &P 500 Index Barclays Capital Aggregate MSCI EAFE Sep -2006 S &P 500 Index Barclays Capital Intermediate Aggregate Oct -2009 Russell 3000 Index Barclays Capital Intermediate Aggregate MSCI EAFE Barclays Capital U.S. Treasury: U.S. TIPS NCREIF Property Index 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 (EW) 65.00 30.00 5.00 60.00 30.00 10.00 60.00 40.00 50.00 25.00 15.00 5.00 5.00 50.00 20.00 15.00 5.00 10.00 Total Domestic Jan -1926 S &P 500 Index Oct -2009 Russell 3000 Index Total Fixed Nov -2000 Barclays Capital Aggregate Sep -2006 Barclays Capital Intermediate Aggregate 50 100.00 100.00 11 11 11 11 THE [ � BOGDAHN `� G ROUP. Winter Springs General Employees General Plan and Trust As of June 30, 2011 Disclosures 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. 51 THE [ r BQ GDAHN `-� G ROUP. Page Intentionally Left Blank THE 52 [� 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. 53 THE BOGDAHN GROUP City of Winter Springs General Employee Retirement System Compliance Checklist as of June 30, 2011 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. ✓ 5. Total foreign equity was less than 25% 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. 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. 54 City of Winter Springs General Employee Retirement System Compliance Checklist as of June 30, 2011 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 -vear down - market capture ratio less than the index. 55 ZOZ£S arSUOaS[Ak `aaalnen%[iW 0081 alinS `any ulsuoaSIAk '3 OSZ aa31 num1! N Z£6L'O17Z'99 [ ] S ZE ew-lo13 `Opuepo 009 ol?nS `peo2l puslauIA 106ti opu suorsp,7p Grvunf' �'un tuauersar�ur 4naCYu!Afjdu4r$ ano cut I ) NHVUDOq JH1, 1, 8t3ZSL Sexal `se11VO OSZ alms `AuA%I ed SulluG OLL91 suIIEQ I € 117V oigo `aauapuadapul £0£ alms `11 a -ienb5 ap!silaoN SSS09 SIOUI[l[ a[p,tiaa»vtA peo'd api5313oll € €19 OOZ al!nS `peoH plas3ulm OZ €b puRIan0 oguotiq 3