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HomeMy WebLinkAbout2011 11 08 Regular 601 Winter Springs General Quarterly Investment ReportWWW.B0GDAHNGROUP,C0M Winter Springs General Employees General Plan and Trust 3rd Quarter 2011 ilosS THE � BOGDAHN GROUP. simplij3iing your investment and fr`duriary decisions WWW.B0GDAHNGROUP,C0M Winter Springs General Employees General Plan and Trust 3rd Quarter 2011 ilosS THE � BOGDAHN GROUP. simplij3iing your investment and fr`duriary decisions 3 Quarter 2011 Market Environment r BOGDAHN GROUP.. 2 fi�tr BOGDAHN GROUP. The Market Environment Plan Investment Performance Period Ended: September 30, 2011 Portfolio Attribution (Reference pages 18 -20 of The Bogdahn Group September 2011 Report) • Theme for the month and quarter: "Risk -off" Trade was "ON "! Fear of systemic bank failure in the Euro Zone drove market volatility to levels similar to that experienced in the 2008 bear market. Portfolio diversification benefits were further confounded by the lack of offsetting returns in the bond market which typically accompany such drastic equity market sell offs. With stock price correlations in excess of 80 %, active managers had difficulty in providing positive return distinction to bench marks where declines were in excess of -15 %. The narrow focus of the markets in the extreme flight to quality meant that few areas saw positive returns; longer dated U.S. Treasuries rallied, and Core Real Estate continued to deliver steady income and modest appreciation. • In sharp contrast to the June fiscal year to date results, the Plan assets declined -11.71% net for the quarter, retracing the years gains to close the year with a -1 25% rate of return net. Manager performance, which had been leading peer groups, reversed significantly in August and September, heavily impacting the total Plan peer group ranking of 82 percentile for the fiscal year. • The most notable positive contribution came from the allocation to Real Estate, and TIP's. Investment Grade Bonds provided a modest gain. • The most significant negative to Plan performance, aside from the dramatic decline in equity markets, came from the lack of active manager contribution to market benchmarks. What helped? • The allocation to Real Estate continues to provide strong support to absolute return results, while generating sufficient income to meet pension obligations. • Allocations to TIP's guaranteed participation in the "flight to quality trade" boosting U.S. Treasuries. What hurt? • Active management performance was below benchmarks across all allocations for the quarter Recommendations: • Review rebalancing needs to long term targets. 3 THE BOGDAHN GROUP • The third quarter was extremely difficult for global equities as virtually all market segments, styles and countries experienced "double- digit" losses. During the quarter, the equity market reacted negatively to "resolved" issues including the debt ceiling debate, the U.S. sovereign downgrade and the Fed's $400 billion "twist ". While markets almost always react negatively to uncertainty, the events listed above make it clear that unwanted resolutions often are not viewed very favorably either. In contrast to equities, the bond market, particularly U.S. Treasuries, posted positive results (so much for a downgrade). Outside of the U.S., Europe's evolving sovereign financial crisis continued to unfold over the course of the quarter with no palatable solutions on the horizon. As a result, the world's financial markets were like a swinging pendulum, reacting to each positive and negative news event with volatile and often violent shifts in value. As these events and their ramifications continue to unfold, it appears that heightened volatility is likely to be a market reality for the immediate future. • Large cap stocks, as measured by the S &P 500, returned -13.9% for the quarter with September accounting for nearly half of the losses. This quarter represented the worst return for the S &P 500 since the fourth quarter of 2008 (- 21.9 %) and the 19th worst quarter since 1926. Mounting evidence of a second leg down in economic activity hit small and mid cap issues particularly hard with the Russell 2000 index (small cap) returning a disappointing -21.9% and the Russell MidCap index posting a return of - 18.9 %. • International equity results were also negative for the quarter with the MSCI - ACWxUS index returning -19.8% in U.S. Dollars (USD) and the MSCI -EM index posted a weaker - 22.5 %. The quarter's flight to the USD resulted in a large negative total return impact for broadly diversified, un- hedged U.S. investors. • The domestic bond market was the primary benefactor of the quarter's equity market weakness as investors poured into high quality bonds, particularly U.S. Treasuries. The broad market Barclays US Aggregate index returned a strong 3.8% for the quarter. Source: PARis /Investment Metrics The Market Environment Major Market Index Performance Period Ended: September 30, 2011 4 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 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 -19.8% -19.0% -22.5% - 18.9% -21.9% 0.0% 3.8% 5.8% 4.5% 2.4% 2.9% -25 0% -20.0% -15.0% -10.0% 1 -Year Performance - 15.9% - 10.4% M. - -8.9% -20 0% -15.0% -10.0% -0.9% -3.5% -5.0% 0.0% 0.1% -5.0% 0.0% 5.0% 5.3% 4.4% 5.6% 5.6% 5.0% 9.9% 10.0% 10.0% 15.0% �\ TH L BOGDAHN ., GROUP. • Equity results were negative across the capitalization spectrum for the quarter, but the style -based results were mixed. Growth outperformed value in the broad and large cap segments of the market. The Russell 1000 large cap style benchmarks recorded the largest span with growth outperforming value by a margin of 310 basis points. In the small and mid cap segments of the market, growth actually trailed value for the quarter. However, value's advantage over growth in the small and mid cap segments of the market was less than 100 basis points for each segment. • Growth was able to outpace value in the large cap space due to the large cap growth benchmark's over - weighted positions in the information technology (+19.1% vs. value) and consumer staples ( +4.6% vs. value) sectors. Although each sector was negative for the quarter, both were down much less than the broad index results. In contrast, financials, which represent a significant overweight in the large cap value benchmark ( +21.9% vs. growth), were down more than 22% for the quarter. Interestingly, focusing on the small cap segment of the market, financial sector performance was actually less negative than the information technology sector by 700 basis points. As a result, the financially dominated small cap value benchmark was able to outpace the information technology dominated growth benchmark for the quarter. • Over the one -year period, growth benchmarks outperformed value benchmarks in all capitalization ranges. In the small cap segment of the market, both growth and value results were negative, but value trailed growth by a wide 490 basis points. Outside of small cap, the style differentials appear more visually pronounced since value results at each capitalization range were negative for the year, while the corresponding growth results were positive. Source: PARis /Investment Metrics The Market Environment Domestic Equity Style Index Performance Period Ended: September 30, 2011 5 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 -25 0% MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth -8.0% Quarter Performance - Russell Style Series -21.9 -16.6% -15.3% -13.9% -16.2% -14.7% -13.1% -21.5 -22.2% -6.0% -20.0% -4.0% -15.0% -2.0% -10.0% 1 -Year Performance - Russell Style Series -6.0% -3.5% -2.2% -2.4% -1.9% -0.9% o.5% 0.9% 0.8% 3.4% 3.8% 0.0% 2.0% -5.0% 4.0% 0.0% 6.0% *!� T BOGDAHN GROUP. • The performance of the Global Industry Classification Standard (GICS) economic sectors of the Russell 1000 large cap stock index covered a span of 2,500 basis points from best to worst. The macro - driven volatility that dominated the quarter's results left few sectors unscathed and only seemed to intensify as the quarter progressed. Within the ten economic sectors of the Russell 1000, nine posted negative performance for the quarter, with four sectors down more than 20 %. The utilities' sector return of +0.2% was the only economic sector of the Russell 1000 that managed to produce a positive return for the quarter. • All ten GICS sectors of the Russell 2000 small cap index posted negative results for the quarter. Classic defensive sectors like consumer staples (- 11.3 %) and utilities ( -3.3 %) offered portfolios the greatest downside protection for the quarter. However, with six sectors of the Russell 2000 down more than 20% and two more sectors down in the "high- teens ", there were not many places to hide in the small cap segment of the market. • With 2010's strong third quarter sector results rolling off the one -year trailing performance chart, the returns are much more mixed. The Russell 1000 posted seven positive sector results over the one -year period. The consumer staples ( +10.6 %) and utilities ( +11.8 %) sectors posted the strongest one -year results while financial sector returned a disappointing -15.3% over the period. In contrast to large cap, only three sectors of the Russell 2000 managed to post positive results for the year. Much like the Russell 1000, the defensive consumer staples (+9.1%) and utilities ( +11.9 %) sectors led the Russell 2000's performance for the year. Source: Thompson Financial The Market Environment GICS Sector Performance & (Sector Weight) Period Ended: September 30, 2011 Energy (11.6 %) Materials (10.6 %) Industrials (11.1 %) Consumer Disc (14.2 %) Consumer Staples (12.1%) Health Care (10.4 %) Financials (18.9 %) Info Technology (3.8 %) Telecom Services (3.1 %) Utilities (4.1%) Russell 1000 -24.8% Energy (13.1 %) Materials (3.8 %) Industrials (6.2 %) Consumer Disc (22.1 %) Consumer Staples (12.9 %) Health Care (15.1%) Financials (17.2 %) Info Technology (4.5 %) Telecom Services (1.0 %) Utilities (4.0 %) -40 0% -21.9% 20.9% -22.1% Russell 2000 -32.5% -28.3% I -27.5% -4.9% -14.3% 5.4% -4.3% - -15.3% -24.2% -22.7% I -11.0% -19.3% I -17.7% I -9.1% 3.4% -9.0% -7.0% - 30 0% - 25.0% - 20.0% - 15.0% - 10.0% -11.3% -8.1 % -6.2 % -5.8% -6.4% I -24.7% -4.8% 3.7% 0.2% - 5.0% 0.0% 5.0% -2.7% -2.0% -3.3% - •Quarter 01 -Year I ❑Quarter o1-Year 2.4% 7.0% 6.1% 10.6% 1 10.0% 15.0% 9.1% 11.9% -30.0% -20.0% -10.0% 0.0% 10.0% THE 6 /� BOGDAHN GROUP. I Top Top 10 Weighted Stocks Russell 1000 i Symbol XOM Weight 2.93% Return -10.1% Sector' Energy Exxon Mobil Corp Apple Inc AAPL 2.75% 13.6% Information Technology IBM IBM 1.64% 2.5% Information Technology Chevron Corp CVX 1.57% -9.3% Energy Microsoft Corp MSFT 1.52% -3.7% Information Technology General Electric Company GE 1.39% -18.4% Industrials Johnson & Johnson JNJ 1.39% -3.4% Health Care Procter & Gamble Co PG 1.37% 0.2% Consumer Staples AT &T Inc T 1.36% -8.0% Telecomm Service Pfizer Inc PFE 1.16% - 13.2% Health Care Top 10 Performing Stocks Top 10 Performing Stocks Weight 0.03% Return 91.6% Russell 1000 Symbol MMI Weight 0.06% Return 71.4% Sector Information Technology Motorola Mobility Holdings Inc Petrohawk Energy Corp HK 0.05% 56.9% Energy Pharmasset Inc VRUS 0.04% 46.8% Health Care Emdeon Inc EM 0.00% 43.2% Health Care Alexion Pharmaceuticals Inc ALXN 0.08% 36.2% Health Care Goodrich Corp GR 0.09% 26.8% Industrials Nalco Holding Co NLC 0.04% 25.9% Materials Biomarin Pharmaceutical Inc BMRN 0.03% 17.1% Health Care Newmont Mining Corp NEM 0.23% 17.1% Materials Kinetic Concepts Inc KCI 0.03% 14.3% Health Care Russell 2000 Symbol HEV Weight 0.00% Return -87.5% Bottom 10 Performing Stocks Pmi Group Inc PM! Russell 1000 Symbol DNDN Weight 0.02% Return -77.2% Sector Health Care Dendreon Corp Terex Corp TEX 0.02% - 63.9% Industrials Alpha Natural Resources Inc ANR 0.06% -61.1% Energy Manitowoc Co Inc MTW 0.01% -60.2% Industrials Ak Steel Holding Corp AKS 0.01% -58.3% Materials Sunpower Corp SPWRA 0.01% - 58.1% Information Technology Netflix Inc NFLX 0.09% -56.9% Consumer Discretionary First Solar Inc FSLR 0.05% -52.2% Information Technology United States Steel Corp X 0.04% -52.1% Materials Monster Worldwide Inc MWW 0.01% -51.0% Information Technology I Top 10 Weighted Stocks Russell 2000 I Symbol IDCC Weight 0.25% Return 14.3% Sector Information Technology Interdigital Inc Mfa Financial Inc MFA 0.24% -9.9% Financials Healthspring Inc HS 0.24% -20.9% Health Care Sothebys BID 0.23% - 36.5% Consumer Discretionary Berry Petroleum Co BRY 0.23% -33.3% Energy Amer Campus Communities Inc ACC 0.23% 5.7% Financials World Fuel Services Corp INT 0.23% -9.0% Energy Netlogic Microsystems Inc NETL 0.23% 19.0% Information Technology Rosetta Resources Inc ROSE 0.23% -33.6% Energy Mid Amer Apar Communities Inc MAA 0.22% -9.9% Financials Top 10 Performing Stocks Russell 2000 Symbol HGIC Weight 0.03% Return 91.6% Sector Financials Harleysville Group Inc Apac Customer Services Inc APAC 0.02% 59.8% Industrials SFN Group Inc SFN 0.04% 54.0% Industrials Stamps.Com Inc STMP 0.02% 53.2% Information Technology Staar Surgical Co STAA 0.02% 47.2% Health Care Athenahealth Inc ATHN 0.18% 44.9% Health Care Global Industries Ltd GLBL 0.05% 44.5% Energy FXCM Inc FXCM 0.02% 42.0% Financials Universal Display Corp PANL 0.14% 36.6% Information Technology Arch Chemicals Inc ARJ 0.10% 36.2% Materials Bottom 10 Performing Stocks Russell 2000 Symbol HEV Weight 0.00% Return -87.5% Sector Industrials Ener1 Inc Pmi Group Inc PM! 0.01% -81.3% Financials General Maritime Corp GMR 0.01% -80.7% Energy Eastman Kodak Co EK 0.06% -78.2% Consumer Discretionary Motricity Inc MOTR 0.01% -78.1% Information Technology Broadwind Energy Inc BWEN 0.01% -77.9% Industrials Imperial Holdings Inc IFT 0.01% -76.4% Financials Gentiva Health Services Inc GTIV 0.03% -73.5% Health Care Pacific Biosciences Of Cal Inc PACB 0.02% -72.6% Health Care Alliance Healthcare Services Inc AIQ 0.00% -70.0% Health Care The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 Period Ended: September 30, 2011 Source: Thompson Financial 7 TIIE > BOGDAHN GROUP.. • Each of the diversified international equity benchmarks were down roughly 20% for the quarter in U.S. Dollars (USD). In fact, none of the 44 countries that make up the MSCI - ACWxUS index posted a positive return in USD for the period. Greece, which remains at the center of Europe's concerns, posted the weakest country performance in the index with a return of -46.6% for the quarter. Despite the "headline" focus on Greece, the quarter's losses were widespread with only four countries able to avoid "double- digit" losses for the period. The broad MSCI - ACWxUS index returned a weak -19.8% for the quarter. Within these broad market results, the emerging market index (MSCI -EM) posted a weaker -22.5% and the developed market index (MSCI -EAFE) returned a slightly less negative return of - 19.0 %. • Positive sector performance was nonexistent for developed and emerging market benchmarks for the quarter. Much like domestic equity sector performance, the negative return MSCI - ACWxUS index was driven by weak performance in energy (- 21.9 %), materials (- 25.9 %), industrials (- 23.4 %) and financial (- 23.8 %) sectors. Although these outsized losses dominated results, there was little investor downside protection in other areas of the market as only the consumer staples sector ( -9.3 %) managed to stay out of "double- digit" negative territory for the quarter. • The re- ignition of global fear was evident in the return impact of broad currency movements during the quarter. Although the U.S. Treasury suffered a downgrade, in a counter - intuitive result, the USD actually strengthened against many of the world's currencies. With the exception of the Pacific region, whose currencies showed mild depreciation relative to the USD, the currencies of other international regions clearly illustrate the quarter's USD strength. This strength was a drag on U.S. investor returns of foreign holdings. • Over the one -year period, the developed MSCI -EAFE index returned -8.9 %, and the MSCI -EM index posted a weaker -15.9% in USD. The Pacific region of the developed markets was the strongest region as Japan (0.1%) and New Zealand (21.3 %) represented the only two positive performing countries over the one -year period. Source: MSCI The Market Environment International and Regional Market Index Performance (Country Count) Period Ended: September 30, 2011 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) 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) 8 Quarter Performance -29.5% -22.6% -22.5% -24.5% l -19.8% -35 0% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 1 -Year Performance -21.2% r -25 0% - 20.0% - 15.9% E -15.2% -18.9% - 15.4% -19.0% - - 15.7% -19.4% I - 21.1% I - 16.9% - 14.2% -12.7% - 13.9% -17.5% - 14.9% I - 10.4% - 10.3% - 11.3% - 10.9% -8 -9.9% -9.1 - 11.9% -9.7% - 11.7% - 11.6% I ❑ USD ❑ Local Currency .7% -8.9% - 10.4% -15.0% -10.0% OUSD ❑Local Currency -4.1% -5.0% 0.0% i THL BOGDAHN GROUP. MSCI - EAFE Sector Weight 8.2% Quarter Return -18.1% 1 -Year Return -2.7% Energy Materials 10.0% - 27.9% -12.4% Industrials 12.3% - 22.1% -9.4% Consumer Discretionary 10.2% - 20.0% -7.4% Consumer Staples 11.4% -8.6% 2.6% Health Care 9.7% -9.7% 3.2% Financials 22.1% -24.1% -19.8% Information Technology 5.0% -15.5% -8.2% Telecommunication Services 6.2% - 11.3% -0.8% Utilities 4.9% 100.0% -14.0% - 19.0% - 12.2% -8.9% Total Country Japan MSCI -EAFE Weight 23.1% MSCI - ACWIxUS Weight 15.9% Quarter Return -6.4% 1- Year Return 0.1% United Kingdom 22.2% 15.2% -15.4% -5.3% France 9.1% 6.2% -29.8% -16.8% Switzerland 8.6% 5.9% -17.5% -3.0% Australia 8.4% 5.8% - 20.1% -8.9% Germany 7.7% 5.3% -31.0% -13.0% Spain 3.5% 2.4% -22.1% -17.1% Sweden 2.9% 2.0% -26.6% - 16.2% Hong Kong 2.7% 1.9% - 19.9% - 17.2% Netherlands 2.4% 1.7% -21.8% - 15.6% Italy 2.3% 1.6% -31.0% - 24.7% Singapore 1.7% 1.2% - 18.2% - 11.4% Denmark 1.0% 0.7% -24.1% - 16.7% Belgium 1.0% 0.7% - 19.1% - 15.1% Finland 0.9% 0.6% -26.1% -25.5% Norway 0.9% 0.6% -21.6% -7.3% Israel 0.7% 0.5% - 25.4% - 27.6% Austria 0.3% 0.2% - 37.7% - 24.6% Ireland 0.3% 0.2% - 20.6% -0.6% Portugal 0.3% 0.2% -22.0% - 14.4% Greece 0.2% 0.1% -46.6% - 53.7% New Zealand 0.1% 0.1% -6.5% 21.3% otal EAFE Countries 100.0% 68.8% - 19.0% -8.9% Canada otal Developed Countries China 8.2% 77.0% 3.9% -18.8% - 18.9% - 25.2% -6.2% -8:7 %y - 23.9% Korea 3.4% - 23.3% -6.0% Brazil 3.4% -26.9% -25.5% Taiwan 2.6% - 17.7% -5.9% South Africa 1.8% -16.8% -9.5% India 1.7% - 19.9% - 25.1% Russia 1.5% -31.0% -11.5% Mexico 1.1% -19.7% -6.3% Malaysia 0.8% -17.0% -5.5% Indonesia 0.7% -11.0% 0.0% Thailand 0.4% - 14.3% -7.3% Chile 0.4% -26.2% - 21.7% Poland 0.4% - 32.6% - 21.6% Turkey 0.4% - 15.6% -29.1% Colombia 0.2% -12.5% - 11.9% Philippines 0.2% -6.9% -9.8% Peru 0.1% -4.7% -18.1% Czech Republic 0.1% - 21.7% -6.5% Egypt 0.1% - 20.7% -36.9% Hungary 0.1% - 44.4% - 38.4% Morocco Total Emerging Countries Total ACWIxUS Countries 0.0% 23.0% 100.0/ -9.2% - n' ;` 99 -1.5% : 5. to - 10.4/ MSCI - Emerging Mkt Sector Weight 13.8% Quarter Return -25.8% 1 -Year Return - 14.7% Energy Materials 13.9% -27.1% -19.4% Industrials 6.6% - 29.1% - 25.4% Consumer Discretionary 8.1% -19.2% -5.3% Consumer Staples 7.5% -12.8% -3.7% Health Care 1.1% - 17.6% -15.8% Financials 23.7% - 25.9% - 23.6% Information Technology 12.9% -16.6% -9.7% Telecommunication Services 8.8% -9.8% -3.7% Utilities 3.5% 100.0% - 24.2% - 22.5% -19.8% - 15.9% Total MSCI - ACWIxUS Sector Weight 10.9% Quarter Return -21.9% 1 -Year Return -8.1% Energy Materials 11.9% - 25.9% -13.7% Industrials 10.4% - 23.4% -12.0% Consumer Discretionary 9.2% -20.0% -7.2% Consumer Staples 9.8% -9.3% 1.5% Health Care 7.0% - 10.3% 2.7% Financials 23.4% -23.8% -19.0% Information Technology 6.5% - 16.2% -9.8% Telecommunication Services 6.6% - 10.7% -1.4% Utilities 4.3% 100.0% -15.8% - 19.8% - 13.2% - 10.4% Total Source: MSCI The Market Environment U.S. Dollar International Index Attribution & Country Detail Period Ended: September 30, 2011 9 THE BOGDAHN GROUP. • The Merrill Lynch index data that has been historically used to AAA compose the fixed income sector charts has been replaced with data AA provided by Barclays Capital. We made this change in order to improve the consistency of the dataset used in the Market A Environment section of the performance book. Given the similarities Baa in the structure of these benchmarks, this change will not materially High Yield impact any interpretation of results. Treasury • With the exception of non - investment grade debt (high yield), Mortgage domestic broad fixed income results were positive during the quarter. Corporate The Barclays Aggregate bond index posted a return of 3.8 %. Within TIPS the broad benchmark's segments, the Treasury (6.5 %), mortgage (2.4 %) and corporate (2.9 %) portions of the index all contributed to the broad market performance. The dominant Treasury return was Aggregate aided by a general "flight to safety" on global fears as well as the Intermediate Agg anticipation of additional monetary stimulus by the Fed. Treasury Global Agg x US inflation protected securities (TIPS) were also a beneficiary of falling rates during the quarter with a return of 4.5 %. The quarter's preference for quality is also clearly evident in the scaled credit benchmark results. High quality AAA issues returned 4.2 %, lower quality Baa issues returned 2.2 %, and high yield issues posted a AAA return of -6.1%. Outside of the U.S. market, the Barclays Global AA Aggregate xUS benchmark posted a return of -0.7% for the quarter A in USD. This global bond index number was also negatively Baa impacted by the strength in the USD as the equivalent hedged index returned +2.6% for the quarter. High Yield Treasury • The trailing one -year returns were solid for the various broad and Mortgage sector -based fixed income indices. Much like the quarter, one -year Corporate fixed income results were dominated by the performance of Treasury TIPS (6.0 %) and TIPS (9.9 %) securities. Corporate credit results were also strong over the year with all investment grade credits returning in excess of 4.0% for the period. The advantage of longer- duration Aggregate portfolios in the trailing year's falling interest rate environment is Intermediate Agg evident in the 110 basis point return differential between the Global Agg x US Barclays Aggregate and the Barclays Intermediate Aggregate benchmarks. o.o% Source: Barclays Capital Live The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance Period Ended: September 30, 2011 10 Quarter Performance -6.1% -0.7% 2.4% 2.9% 4.2% 3.3% 2.9% 2.2% 2.3% 3.8% 4.5% 6.5% -8.0% -6.0% -4.0% 1 -Year Performance -2.0% 0.0% 2.0% 1.8% 4.5% 4.4% 4.9% 4.4% 5.5% 6.0% 5.6% 9.9% 5.3% 4.2% d i 3.3% 2.0% 4.0% 6.0% 8.0% AAA, AA, A, Baa, Treasury, Mortgage & Corporate benchmarks - sub- components of the Barclays Aggregate Index. 4.0% 10.0% 6.0% 8.0% 12.0% rOGDAHN GROUP.. • Investors growth and inflation expectations have waned dramatically over recent quarters to the point of renewed recessionary expectations. As a result of this negative outlook, rates closed the current quarter below their 9/30/10 levels. While some of the steepness has come out of the yield curve over the past year, the absolute decrease in rates since last quarter was much larger for longer maturities. The average yield decrease for maturities of up to one -year was only 2.5 basis points. Out further on the yield curve, the average decrease was 46.3 basis points for maturities between 2 &5 -years and 94.7 basis points for maturities in excess of 5- years. • The third quarter opened with market participants assessing the impact of the end of the Fed's $600 billion Treasury purchase 5.00 - program (QEII) and ended with participants assessing the eventual impact of the Fed's $400 billion portfolio "twist" (not quite QEIII). 4.50 Through this new program, the Fed will shift $400 billion of its current 4.00 portfolio of Treasury holdings of less than 3 -years for $400 billion of 3.50 Treasury issues beyond 6 -years by 6/30/12. This "twist" will effectively push long -term rates lower, flattening the yield curve in 3.00 the process. While the Fed's stated purpose of this action is to 2.50 support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with its dual mandate, it 2.00 will likely move investors into riskier, higher - yielding assets. The 1.50 Fed took similar policy action in 1961 (when the "twist" was a dance craze) that is viewed through history's lens with mixed results. In 1.00 order to support conditions in the mortgage market, the Fed also 0.50 committed to reinvest principal agency and MBS debt payments back into MBS securities. 0.00 • There was no direct action by the Fed on short -term rates during the quarter so the fed funds rate remained unchanged (targeted at 0.0% 5.50 to 0.25 %). The 10 -year Treasury finished the quarter at a yield of 1.92 %, which was an incredible 126 basis points lower than it 5.00 opened the quarter. This 10 -year Treasury rate decrease was 4.50 accompanied by a manifestation of global investor fears over a 4.00 "second leg" down in the economy as corporate spreads (BAA /10yr) widened by 58 basis points. 3.50 Source: Mortgage - X.com, US Department of Treasury & St. Louis Fed The Market Environment Market Rate & Yield Curve Comparison Period Ended: September 30, 2011 11 5.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Sep -10 1 -Year Trailing Market Rates Fed Funds Rate • TED Spread • 3 -Month Libor BAA/10yr Spread - 10yr Treasury 10yr TIPS Dec -10 Treasury Yield Curve 9/30/2010 0 12/31/2010 -- 6/30/2011 •9/30/2011 1 mo 3 mo 6 mo 1 yr 2 yr Mar -11 3 yr 5 yr Jun- Sep-11 7 yr 10 yr 20 yr 30 yr i THL BOGDAHN GROUP. 1,350 - 1,300 - 1,250 - 1,200 - 1,150 - Total Return 1,100 06/30 S &P 500 Price Index Level 6/30/11 1 1,320.64 T T I 7129 July -2.03% 4. 1 Up Day Down Day High High Close Open Open Close Low Low .1� T T i 8/31 3 Quarter by the Numbers 189.22 Cumulative Point Decline (- 14.33 % *) 64 Trading Days 33 Negative Days 33 +/- 1% (51.6 %) 19 +/- 2.0% (29.7 %) 6 +/- 4.0% (9.4 %) Worst Day 8/8/11 -79.92 points (- 6.66 %) Best Day 8/9/11 + 53.07 points ( +4.74 %) *S &P 500 3 Quarter Total Retum - 13.87% August -5.43% September -7.03% 07/5 07/10 The Market Environment The 3 Quarter Domestic Equity Market at a Glance Daily High /Low /Open /Close for the S &P 500 Price Index Through 9/30/11 07/15 07/20 07/25 07/30 08/4 08/9 08/14 08/19 08/24 08/29 12 09/3 09/8 09/13 09/18 09/23 09/28 9/30/11 1,131.42 Fe THE • BOGDAHN GROUP. • In an effort to better serve your needs, The Bogdahn Group is conducting its first client survey. The insights gathered from this short electronic study will be used to direct the allocation of firm resources as well as to enhance the effectiveness of our client service and communication. • If you do not receive an individual e-mail from the survey company, please participate by directing your browser to https:// www. surveymonkey. com /s /BogdahnGroupClientSurvey. • We sincerely appreciate your participation. All responses will be kept strictly confidential. The Bogdahn Client Survey link will be live through December 20, 2011. The Market Environment How are you doing? How are we doing? The 2011 Bogdahn Client Survey 13 ▪ Please rate your satisfaction with the structure and clarity of our performance report. n Please rate your satisfaction with the level of detail in our performance report. 4 10 Please rate your consultant's ability to effectively communicate the © information in the performance report. Please rate your consultant's ability to effectively communicate investment insights beyond those in the performance report. © Please rate the effort of your consultant to offer suggestions and /or solutions to enhance your portfolio. n Please rate the outcomes of your consultant's suggestions and /or investment solutions. O Please rate your consultant's level of understanding of your Plan /Fund's unique needs. O Please rate the timeliness of your consultant's responses to regular inquiries. (Our firm policy is to reply to all inquiries within 24 hours). O Please rate the detail provided in your consultant's follow up to inquiries. Please rate your overall satisfaction with The Bogdahn Group's services. Very Poor Poor Average Good Excellent Select one choice • • • • • • • • • il THE r BOGDAHN GROUP. • The performance of the Global Industry Classification Standard (GICS) economic sectors of the Russell 1000 large cap stock index covered a span of 2,500 basis points from best to worst. The macro - driven volatility that dominated the quarter's results left few sectors unscathed and only seemed to intensify as the quarter progressed. Within the ten economic sectors of the Russell 1000, nine posted negative performance for the quarter, with four sectors down more than 20 %. The utilities' sector return of +0.2% was the only economic sector of the Russell 1000 that managed to produce a positive return for the quarter. • All ten GICS sectors of the Russell 2000 small cap index posted negative results for the quarter. Classic defensive sectors like consumer staples (- 11.3 %) and utilities ( -3.3 %) offered portfolios the greatest downside protection for the quarter. However, with six sectors of the Russell 2000 down more than 20% and two more sectors down in the "high- teens ", there were not many places to hide in the small cap segment of the market. • With 2010's strong third quarter sector results rolling off the one -year trailing performance chart, the returns are much more mixed. The Russell 1000 posted seven positive sector results over the one -year period. The consumer staples ( +10.6 %) and utilities ( +11.8 %) sectors posted the strongest one -year results while financial sector returned a disappointing -15.3% over the period. In contrast to large cap, only three sectors of the Russell 2000 managed to post positive results for the year. Much like the Russell 1000, the defensive consumer staples (+9.1%) and utilities ( +11.9 %) sectors led the Russell 2000's performance for the year. Source: Thompson Financial The Market Environment GICS Sector Performance & (Sector Weight) Period Ended: September 30, 2011 Energy (11.6 %) Materials (10.6 %) Industrials (11.1 %) Consumer Disc (14.2 %) Consumer Staples (12.1%) Health Care (10.4 %) Financials (18.9 %) Info Technology (3.8 %) Telecom Services (3.1 %) Utilities (4.1%) Russell 1000 -24.8% Energy (13.1 %) Materials (3.8 %) Industrials (6.2 %) Consumer Disc (22.1 %) Consumer Staples (12.9 %) Health Care (15.1%) Financials (17.2 %) Info Technology (4.5 %) Telecom Services (1.0 %) Utilities (4.0 %) -40 0% -21.9% 20.9% -22.1% Russell 2000 -32.5% -28.3% I -27.5% -4.9% -14.3% 5.4% -4.3% - -15.3% -24.2% -22.7% I -11.0% -19.3% I -17.7% I -9.1% 3.4% -9.0% -7.0% - 30 0% - 25.0% - 20.0% - 15.0% - 10.0% -11.3% -8.1 % -6.2 % -5.8% -6.4% I -24.7% -4.8% 3.7% 0.2% - 5.0% 0.0% 5.0% -2.7% -2.0% -3.3% - •Quarter 01 -Year I ❑Quarter o1-Year 2.4% 7.0% 6.1% 10.6% 1 10.0% 15.0% 9.1% 11.9% -30.0% -20.0% -10.0% 0.0% 10.0% THE 6 /� BOGDAHN GROUP. I Top Top 10 Weighted Stocks Russell 1000 i Symbol XOM Weight 2.93% Return -10.1% Sector' Energy Exxon Mobil Corp Apple Inc AAPL 2.75% 13.6% Information Technology IBM IBM 1.64% 2.5% Information Technology Chevron Corp CVX 1.57% -9.3% Energy Microsoft Corp MSFT 1.52% -3.7% Information Technology General Electric Company GE 1.39% -18.4% Industrials Johnson & Johnson JNJ 1.39% -3.4% Health Care Procter & Gamble Co PG 1.37% 0.2% Consumer Staples AT &T Inc T 1.36% -8.0% Telecomm Service Pfizer Inc PFE 1.16% - 13.2% Health Care Top 10 Performing Stocks Top 10 Performing Stocks Weight 0.03% Return 91.6% Russell 1000 Symbol MMI Weight 0.06% Return 71.4% Sector Information Technology Motorola Mobility Holdings Inc Petrohawk Energy Corp HK 0.05% 56.9% Energy Pharmasset Inc VRUS 0.04% 46.8% Health Care Emdeon Inc EM 0.00% 43.2% Health Care Alexion Pharmaceuticals Inc ALXN 0.08% 36.2% Health Care Goodrich Corp GR 0.09% 26.8% Industrials Nalco Holding Co NLC 0.04% 25.9% Materials Biomarin Pharmaceutical Inc BMRN 0.03% 17.1% Health Care Newmont Mining Corp NEM 0.23% 17.1% Materials Kinetic Concepts Inc KCI 0.03% 14.3% Health Care Russell 2000 Symbol HEV Weight 0.00% Return -87.5% Bottom 10 Performing Stocks Pmi Group Inc PM! Russell 1000 Symbol DNDN Weight 0.02% Return -77.2% Sector Health Care Dendreon Corp Terex Corp TEX 0.02% - 63.9% Industrials Alpha Natural Resources Inc ANR 0.06% -61.1% Energy Manitowoc Co Inc MTW 0.01% -60.2% Industrials Ak Steel Holding Corp AKS 0.01% -58.3% Materials Sunpower Corp SPWRA 0.01% - 58.1% Information Technology Netflix Inc NFLX 0.09% -56.9% Consumer Discretionary First Solar Inc FSLR 0.05% -52.2% Information Technology United States Steel Corp X 0.04% -52.1% Materials Monster Worldwide Inc MWW 0.01% -51.0% Information Technology I Top 10 Weighted Stocks Russell 2000 I Symbol IDCC Weight 0.25% Return 14.3% Sector Information Technology Interdigital Inc Mfa Financial Inc MFA 0.24% -9.9% Financials Healthspring Inc HS 0.24% -20.9% Health Care Sothebys BID 0.23% - 36.5% Consumer Discretionary Berry Petroleum Co BRY 0.23% -33.3% Energy Amer Campus Communities Inc ACC 0.23% 5.7% Financials World Fuel Services Corp INT 0.23% -9.0% Energy Netlogic Microsystems Inc NETL 0.23% 19.0% Information Technology Rosetta Resources Inc ROSE 0.23% -33.6% Energy Mid Amer Apar Communities Inc MAA 0.22% -9.9% Financials Top 10 Performing Stocks Russell 2000 Symbol HGIC Weight 0.03% Return 91.6% Sector Financials Harleysville Group Inc Apac Customer Services Inc APAC 0.02% 59.8% Industrials SFN Group Inc SFN 0.04% 54.0% Industrials Stamps.Com Inc STMP 0.02% 53.2% Information Technology Staar Surgical Co STAA 0.02% 47.2% Health Care Athenahealth Inc ATHN 0.18% 44.9% Health Care Global Industries Ltd GLBL 0.05% 44.5% Energy FXCM Inc FXCM 0.02% 42.0% Financials Universal Display Corp PANL 0.14% 36.6% Information Technology Arch Chemicals Inc ARJ 0.10% 36.2% Materials Bottom 10 Performing Stocks Russell 2000 Symbol HEV Weight 0.00% Return -87.5% Sector Industrials Ener1 Inc Pmi Group Inc PM! 0.01% -81.3% Financials General Maritime Corp GMR 0.01% -80.7% Energy Eastman Kodak Co EK 0.06% -78.2% Consumer Discretionary Motricity Inc MOTR 0.01% -78.1% Information Technology Broadwind Energy Inc BWEN 0.01% -77.9% Industrials Imperial Holdings Inc IFT 0.01% -76.4% Financials Gentiva Health Services Inc GTIV 0.03% -73.5% Health Care Pacific Biosciences Of Cal Inc PACB 0.02% -72.6% Health Care Alliance Healthcare Services Inc AIQ 0.00% -70.0% Health Care The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 Period Ended: September 30, 2011 Source: Thompson Financial 7 TIIE > BOGDAHN GROUP.. • Each of the diversified international equity benchmarks were down roughly 20% for the quarter in U.S. Dollars (USD). In fact, none of the 44 countries that make up the MSCI - ACWxUS index posted a positive return in USD for the period. Greece, which remains at the center of Europe's concerns, posted the weakest country performance in the index with a return of -46.6% for the quarter. Despite the "headline" focus on Greece, the quarter's losses were widespread with only four countries able to avoid "double- digit" losses for the period. The broad MSCI - ACWxUS index returned a weak -19.8% for the quarter. Within these broad market results, the emerging market index (MSCI -EM) posted a weaker -22.5% and the developed market index (MSCI -EAFE) returned a slightly less negative return of - 19.0 %. • Positive sector performance was nonexistent for developed and emerging market benchmarks for the quarter. Much like domestic equity sector performance, the negative return MSCI - ACWxUS index was driven by weak performance in energy (- 21.9 %), materials (- 25.9 %), industrials (- 23.4 %) and financial (- 23.8 %) sectors. Although these outsized losses dominated results, there was little investor downside protection in other areas of the market as only the consumer staples sector ( -9.3 %) managed to stay out of "double- digit" negative territory for the quarter. • The re- ignition of global fear was evident in the return impact of broad currency movements during the quarter. Although the U.S. Treasury suffered a downgrade, in a counter - intuitive result, the USD actually strengthened against many of the world's currencies. With the exception of the Pacific region, whose currencies showed mild depreciation relative to the USD, the currencies of other international regions clearly illustrate the quarter's USD strength. This strength was a drag on U.S. investor returns of foreign holdings. • Over the one -year period, the developed MSCI -EAFE index returned -8.9 %, and the MSCI -EM index posted a weaker -15.9% in USD. The Pacific region of the developed markets was the strongest region as Japan (0.1%) and New Zealand (21.3 %) represented the only two positive performing countries over the one -year period. Source: MSCI The Market Environment International and Regional Market Index Performance (Country Count) Period Ended: September 30, 2011 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) 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) 8 Quarter Performance -29.5% -22.6% -22.5% -24.5% l -19.8% -35 0% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 1 -Year Performance -21.2% r -25 0% - 20.0% - 15.9% E -15.2% -18.9% - 15.4% -19.0% - - 15.7% -19.4% I - 21.1% I - 16.9% - 14.2% -12.7% - 13.9% -17.5% - 14.9% I - 10.4% - 10.3% - 11.3% - 10.9% -8 -9.9% -9.1 - 11.9% -9.7% - 11.7% - 11.6% I ❑ USD ❑ Local Currency .7% -8.9% - 10.4% -15.0% -10.0% OUSD ❑Local Currency -4.1% -5.0% 0.0% i THL BOGDAHN GROUP. MSCI - EAFE Sector Weight 8.2% Quarter Return -18.1% 1 -Year Return -2.7% Energy Materials 10.0% - 27.9% -12.4% Industrials 12.3% - 22.1% -9.4% Consumer Discretionary 10.2% - 20.0% -7.4% Consumer Staples 11.4% -8.6% 2.6% Health Care 9.7% -9.7% 3.2% Financials 22.1% -24.1% -19.8% Information Technology 5.0% -15.5% -8.2% Telecommunication Services 6.2% - 11.3% -0.8% Utilities 4.9% 100.0% -14.0% - 19.0% - 12.2% -8.9% Total Country Japan MSCI -EAFE Weight 23.1% MSCI - ACWIxUS Weight 15.9% Quarter Return -6.4% 1- Year Return 0.1% United Kingdom 22.2% 15.2% -15.4% -5.3% France 9.1% 6.2% -29.8% -16.8% Switzerland 8.6% 5.9% -17.5% -3.0% Australia 8.4% 5.8% - 20.1% -8.9% Germany 7.7% 5.3% -31.0% -13.0% Spain 3.5% 2.4% -22.1% -17.1% Sweden 2.9% 2.0% -26.6% - 16.2% Hong Kong 2.7% 1.9% - 19.9% - 17.2% Netherlands 2.4% 1.7% -21.8% - 15.6% Italy 2.3% 1.6% -31.0% - 24.7% Singapore 1.7% 1.2% - 18.2% - 11.4% Denmark 1.0% 0.7% -24.1% - 16.7% Belgium 1.0% 0.7% - 19.1% - 15.1% Finland 0.9% 0.6% -26.1% -25.5% Norway 0.9% 0.6% -21.6% -7.3% Israel 0.7% 0.5% - 25.4% - 27.6% Austria 0.3% 0.2% - 37.7% - 24.6% Ireland 0.3% 0.2% - 20.6% -0.6% Portugal 0.3% 0.2% -22.0% - 14.4% Greece 0.2% 0.1% -46.6% - 53.7% New Zealand 0.1% 0.1% -6.5% 21.3% otal EAFE Countries 100.0% 68.8% - 19.0% -8.9% Canada otal Developed Countries China 8.2% 77.0% 3.9% -18.8% - 18.9% - 25.2% -6.2% -8:7 %y - 23.9% Korea 3.4% - 23.3% -6.0% Brazil 3.4% -26.9% -25.5% Taiwan 2.6% - 17.7% -5.9% South Africa 1.8% -16.8% -9.5% India 1.7% - 19.9% - 25.1% Russia 1.5% -31.0% -11.5% Mexico 1.1% -19.7% -6.3% Malaysia 0.8% -17.0% -5.5% Indonesia 0.7% -11.0% 0.0% Thailand 0.4% - 14.3% -7.3% Chile 0.4% -26.2% - 21.7% Poland 0.4% - 32.6% - 21.6% Turkey 0.4% - 15.6% -29.1% Colombia 0.2% -12.5% - 11.9% Philippines 0.2% -6.9% -9.8% Peru 0.1% -4.7% -18.1% Czech Republic 0.1% - 21.7% -6.5% Egypt 0.1% - 20.7% -36.9% Hungary 0.1% - 44.4% - 38.4% Morocco Total Emerging Countries Total ACWIxUS Countries 0.0% 23.0% 100.0/ -9.2% - n' ;` 99 -1.5% : 5. to - 10.4/ MSCI - Emerging Mkt Sector Weight 13.8% Quarter Return -25.8% 1 -Year Return - 14.7% Energy Materials 13.9% -27.1% -19.4% Industrials 6.6% - 29.1% - 25.4% Consumer Discretionary 8.1% -19.2% -5.3% Consumer Staples 7.5% -12.8% -3.7% Health Care 1.1% - 17.6% -15.8% Financials 23.7% - 25.9% - 23.6% Information Technology 12.9% -16.6% -9.7% Telecommunication Services 8.8% -9.8% -3.7% Utilities 3.5% 100.0% - 24.2% - 22.5% -19.8% - 15.9% Total MSCI - ACWIxUS Sector Weight 10.9% Quarter Return -21.9% 1 -Year Return -8.1% Energy Materials 11.9% - 25.9% -13.7% Industrials 10.4% - 23.4% -12.0% Consumer Discretionary 9.2% -20.0% -7.2% Consumer Staples 9.8% -9.3% 1.5% Health Care 7.0% - 10.3% 2.7% Financials 23.4% -23.8% -19.0% Information Technology 6.5% - 16.2% -9.8% Telecommunication Services 6.6% - 10.7% -1.4% Utilities 4.3% 100.0% -15.8% - 19.8% - 13.2% - 10.4% Total Source: MSCI The Market Environment U.S. Dollar International Index Attribution & Country Detail Period Ended: September 30, 2011 9 THE BOGDAHN GROUP. • The Merrill Lynch index data that has been historically used to AAA compose the fixed income sector charts has been replaced with data AA provided by Barclays Capital. We made this change in order to improve the consistency of the dataset used in the Market A Environment section of the performance book. Given the similarities Baa in the structure of these benchmarks, this change will not materially High Yield impact any interpretation of results. Treasury • With the exception of non - investment grade debt (high yield), Mortgage domestic broad fixed income results were positive during the quarter. Corporate The Barclays Aggregate bond index posted a return of 3.8 %. Within TIPS the broad benchmark's segments, the Treasury (6.5 %), mortgage (2.4 %) and corporate (2.9 %) portions of the index all contributed to the broad market performance. The dominant Treasury return was Aggregate aided by a general "flight to safety" on global fears as well as the Intermediate Agg anticipation of additional monetary stimulus by the Fed. Treasury Global Agg x US inflation protected securities (TIPS) were also a beneficiary of falling rates during the quarter with a return of 4.5 %. The quarter's preference for quality is also clearly evident in the scaled credit benchmark results. High quality AAA issues returned 4.2 %, lower quality Baa issues returned 2.2 %, and high yield issues posted a AAA return of -6.1%. Outside of the U.S. market, the Barclays Global AA Aggregate xUS benchmark posted a return of -0.7% for the quarter A in USD. This global bond index number was also negatively Baa impacted by the strength in the USD as the equivalent hedged index returned +2.6% for the quarter. High Yield Treasury • The trailing one -year returns were solid for the various broad and Mortgage sector -based fixed income indices. Much like the quarter, one -year Corporate fixed income results were dominated by the performance of Treasury TIPS (6.0 %) and TIPS (9.9 %) securities. Corporate credit results were also strong over the year with all investment grade credits returning in excess of 4.0% for the period. The advantage of longer- duration Aggregate portfolios in the trailing year's falling interest rate environment is Intermediate Agg evident in the 110 basis point return differential between the Global Agg x US Barclays Aggregate and the Barclays Intermediate Aggregate benchmarks. o.o% Source: Barclays Capital Live The Market Environment Domestic Bond Sector & Broad /Global Bond Market Performance Period Ended: September 30, 2011 10 Quarter Performance -6.1% -0.7% 2.4% 2.9% 4.2% 3.3% 2.9% 2.2% 2.3% 3.8% 4.5% 6.5% -8.0% -6.0% -4.0% 1 -Year Performance -2.0% 0.0% 2.0% 1.8% 4.5% 4.4% 4.9% 4.4% 5.5% 6.0% 5.6% 9.9% 5.3% 4.2% d i 3.3% 2.0% 4.0% 6.0% 8.0% AAA, AA, A, Baa, Treasury, Mortgage & Corporate benchmarks - sub- components of the Barclays Aggregate Index. 4.0% 10.0% 6.0% 8.0% 12.0% rOGDAHN GROUP.. • Investors growth and inflation expectations have waned dramatically over recent quarters to the point of renewed recessionary expectations. As a result of this negative outlook, rates closed the current quarter below their 9/30/10 levels. While some of the steepness has come out of the yield curve over the past year, the absolute decrease in rates since last quarter was much larger for longer maturities. The average yield decrease for maturities of up to one -year was only 2.5 basis points. Out further on the yield curve, the average decrease was 46.3 basis points for maturities between 2 &5 -years and 94.7 basis points for maturities in excess of 5- years. • The third quarter opened with market participants assessing the impact of the end of the Fed's $600 billion Treasury purchase 5.00 - program (QEII) and ended with participants assessing the eventual impact of the Fed's $400 billion portfolio "twist" (not quite QEIII). 4.50 Through this new program, the Fed will shift $400 billion of its current 4.00 portfolio of Treasury holdings of less than 3 -years for $400 billion of 3.50 Treasury issues beyond 6 -years by 6/30/12. This "twist" will effectively push long -term rates lower, flattening the yield curve in 3.00 the process. While the Fed's stated purpose of this action is to 2.50 support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with its dual mandate, it 2.00 will likely move investors into riskier, higher - yielding assets. The 1.50 Fed took similar policy action in 1961 (when the "twist" was a dance craze) that is viewed through history's lens with mixed results. In 1.00 order to support conditions in the mortgage market, the Fed also 0.50 committed to reinvest principal agency and MBS debt payments back into MBS securities. 0.00 • There was no direct action by the Fed on short -term rates during the quarter so the fed funds rate remained unchanged (targeted at 0.0% 5.50 to 0.25 %). The 10 -year Treasury finished the quarter at a yield of 1.92 %, which was an incredible 126 basis points lower than it 5.00 opened the quarter. This 10 -year Treasury rate decrease was 4.50 accompanied by a manifestation of global investor fears over a 4.00 "second leg" down in the economy as corporate spreads (BAA /10yr) widened by 58 basis points. 3.50 Source: Mortgage - X.com, US Department of Treasury & St. Louis Fed The Market Environment Market Rate & Yield Curve Comparison Period Ended: September 30, 2011 11 5.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Sep -10 1 -Year Trailing Market Rates Fed Funds Rate • TED Spread • 3 -Month Libor BAA/10yr Spread - 10yr Treasury 10yr TIPS Dec -10 Treasury Yield Curve 9/30/2010 0 12/31/2010 -- 6/30/2011 •9/30/2011 1 mo 3 mo 6 mo 1 yr 2 yr Mar -11 3 yr 5 yr Jun- Sep-11 7 yr 10 yr 20 yr 30 yr i THL BOGDAHN GROUP. 1,350 - 1,300 - 1,250 - 1,200 - 1,150 - Total Return 1,100 06/30 S &P 500 Price Index Level 6/30/11 1 1,320.64 T T I 7129 July -2.03% 4. 1 Up Day Down Day High High Close Open Open Close Low Low .1� T T i 8/31 3 Quarter by the Numbers 189.22 Cumulative Point Decline (- 14.33 % *) 64 Trading Days 33 Negative Days 33 +/- 1% (51.6 %) 19 +/- 2.0% (29.7 %) 6 +/- 4.0% (9.4 %) Worst Day 8/8/11 -79.92 points (- 6.66 %) Best Day 8/9/11 + 53.07 points ( +4.74 %) *S &P 500 3 Quarter Total Retum - 13.87% August -5.43% September -7.03% 07/5 07/10 The Market Environment The 3 Quarter Domestic Equity Market at a Glance Daily High /Low /Open /Close for the S &P 500 Price Index Through 9/30/11 07/15 07/20 07/25 07/30 08/4 08/9 08/14 08/19 08/24 08/29 12 09/3 09/8 09/13 09/18 09/23 09/28 9/30/11 1,131.42 Fe THE • BOGDAHN GROUP. • In an effort to better serve your needs, The Bogdahn Group is conducting its first client survey. The insights gathered from this short electronic study will be used to direct the allocation of firm resources as well as to enhance the effectiveness of our client service and communication. • If you do not receive an individual e-mail from the survey company, please participate by directing your browser to https:// www. surveymonkey. com /s /BogdahnGroupClientSurvey. • We sincerely appreciate your participation. All responses will be kept strictly confidential. The Bogdahn Client Survey link will be live through December 20, 2011. The Market Environment How are you doing? How are we doing? The 2011 Bogdahn Client Survey 13 ▪ Please rate your satisfaction with the structure and clarity of our performance report. n Please rate your satisfaction with the level of detail in our performance report. 4 10 Please rate your consultant's ability to effectively communicate the © information in the performance report. Please rate your consultant's ability to effectively communicate investment insights beyond those in the performance report. © Please rate the effort of your consultant to offer suggestions and /or solutions to enhance your portfolio. n Please rate the outcomes of your consultant's suggestions and /or investment solutions. O Please rate your consultant's level of understanding of your Plan /Fund's unique needs. O Please rate the timeliness of your consultant's responses to regular inquiries. (Our firm policy is to reply to all inquiries within 24 hours). O Please rate the detail provided in your consultant's follow up to inquiries. Please rate your overall satisfaction with The Bogdahn Group's services. Very Poor Poor Average Good Excellent Select one choice • • • • • • • • • il THE r BOGDAHN GROUP. Asset Allocation By Style as of Jun - 2011 June 30, 2011 : $24,682,945 Segments • Domestic Equity • International Equity • Fixed Income • Real Estate • Cash Equivalent Market Value ($) 12,361,918 3,887,362 5,654,965 2,128,576 650,125 Winter Springs General Employees General Plan and Trust September 30, 2011 Allocation (%) 50.1 15.7 22.9 8.6 2.6 14 Asset Allocation By Style - Current Quarter September 30, 2011 : $22,043,871 Segments • Domestic Equity • International Equity • Fixed Income • Real Estate • Cash Equivalent Market Value ($) 10,332,778 3,093,390 5,884,695 2,185,306 547,702 Allocation ( %) 46.9 14.0 26.7 9.9 2.5 THE BOGDAHN GROUP. Asset Allocation By Manager as of Jun - 2011 • • • • • • • June 30, 2011 : $24,682,945 LateefAsset Mgmt.Equity Dalton, Greiner, Hartman, Maher & Co. Galliard Core Fixed Income RBC Global (Voyageur) Intercontinental Galliard TIPS American Core Realty Fund Receipt & Disbursement Galliard Cash Winter Springs General Employees General Plan and Trust September 30, 2011 Market Value ( 6,359,882 6,408,076 4,568,825 3,887,362 1,450,464 1,107,470 678,112 196,439 26,316 Allocation ( %) 25.8 26.0 18.5 15.7 5.9 4.5 2.7 0.8 0.1 15 Asset Allocation By Manager - Current Quarter • • • • • • • September 30, 2011 : $22,043,871 Lateef Asset Mgmt.Equity Dalton, Greiner, Hartman, Maher & Co. Galliard Core Fixed Income RBC Global (Voyageur) Intercontinental Galliard TIPS American Core Realty Fund Receipt & Disbursement Galliard Cash Market Value Allocation ( ( %) 5,331,882 24.2 5,305,428 24.1 4,760,830 21.6 3,093,390 14.0 1,495,718 6.8 1,133,176 5.1 689,588 3.1 233,642 1.1 216 0.0 E E OGDAHN GROUP. Winter Springs General Employees General Plan and Trust Asset Allocation vs. Target Allocation As of September 30, 2011 September 30, 2011 Domestic Large Cap Value Equity Domestic Broad Cap Growth Equity Foreign Equity Broad Market Fixed Income TIPS - Receipt & Disbursement - Galliard Cash Real Estate - -10.0 % -8.0 % Allocation Differences -6.0 % -4.0 % -2.0 % 0.0% 2.0% 4.0% 6.0% 8.0% 10.'7)% September 30, 2011 Market Value (S) Allocation (%) Target (%) Domestic Large Cap Value Equity Domestic Broad Cap Growth Equity Foreign Equity Broad Market Fixed Income TIPS Receipt & Disbursement Galliard Cash Real Estate Total Fund 5,305,428 5,331,882 3,093,390 4,760,830 1,133,176 233,642 216 2,185, 306 22,043,871 24.1 24.2 14.0 21.6 5.1 1.1 0.0 9.9 100.0 25.0 25.0 15.0 20.0 5.0 0.0 0.0 10.0 100.0 16 THE BOGDAHN Nr" GROUP. Asset Allocation History by Portfolio Sep -2011 ($) Jun -2011 ($) Mar -2011 ($) Dec -2010 ($) Sep -2010 ($) Total Domestic Equity Snow Capital Mgmt. Equity Dalton, Greiner, Hartman, Maher & Co. Lateef Asset Mgmt.Equity Total International Equity RBC Global (Voyageur) Receipt & Disbursement Galliard Cash Total Fund Portfolio Asset Allocation History by Segment 100.0 80.0 60.0 40.0 20.0 0.0 10,637,310 5,305,428 5,331,882 Winter Springs General Employees General Plan and Trust Asset Allocation History As of September 30,2011 48.26 0.00 24.07 24.19 3,093,390 14.03 3,093,390 14.03 22,043,871 ■ Cash Equivalent ■ Real Estate 12,767,958 6,408,076 6,359,882 51.73 0.00 25.96 25.77 3,887,362 15.75 3,887,362 15.75 24,682,945 100.00 17 12,611,331 6,408,094 6,203,237 52.37 0.00 26.61 25.76 3,822,145 15.87 3,822,145 15.87 24,079,375 100.00 11,615,146 5,886,361 5,728,785 51.25 0.00 25.97 25.27 3,585,512 15.82 3,585,512 15.82 Total Real Estate 2,185,306 9.91 2,128,576 8.62 2,069,315 8.59 1,994,043 8.80 American Core Realty Fund 689,588 3.13 678,112 2.75 662,552 2.75 642,474 2.83 Intercontinental 1,495,718 6.79 1,450,464 5.88 1,406,763 5.84 1,351,569 5.96 22,665,850 100.00 ■ Fixed Income ❑ International Equity ■ Domestic Equity 10,225,481 5,209,926 5,015,554 3,127,979 14.93 3,127,979 14.93 Total Fixed Income 5,894,006 26.74 5,676,295 23.00 5,457,217 22.66 5,233,634 23.09 4,974,315 23.75 Galliard Core Fixed Income 4,760,830 21.60 4,568,825 18.51 4,387,658 18.22 4,209,236 18.57 3,995,403 19.07 Galliard TIPS 1,133,176 5.14 1,107,470 4.49 1,069,559 4.44 1,024,397 4.52 978,912 4.67 628,316 628,316 48.82 0.00 24.87 23.94 3.00 3.00 0.00 233,642 1.06 196,439 0.80 87,251 0.36 193,800 0.86 1,958,745 9.35 216 0.00 26,316 0.11 32,116 0.13 43,716 0.19 32,112 0.15 20,946,948 100.00 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 3/11 6/11 9/11 THE BOGDAHN GROUP.. Winter Springs General Employees General Plan and Trust Financial Reconciliation Quarter to Date 1 Quarter Ending September 30, 2011 Market Value As of 07/01/2011 Net Contributions Distributions Transfers Capital Fees Expenses Income Apprec./ Deprec. Market Value As of 09/30/2011 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 12,767,958 6,359,882 6,408,076 3,887,362 44,624 3,887,362 44,624 5,676,295 4,568,825 1,107,470 2,128,576 678,112 1,450,464 196,439 26,316 24,682,945 117,500 58,750 58,750 106,000 94,250 11,750 - 43,424 - 31,409 - 12,015 - 3,271 -3,271 -8,197 - 1,975 -8,197 -1,975 -1,497 37,748 - 2,240,974 -742 8,685 - 1,063,283 -755 29,063 - 1,177,690 -9,374 -662 11,505 - 840,065 3,093,390 -9,374 -662 11,505 - 840,065 3,093,390 -139 4,993 110,128 97,755 -139 4,993 12,373 8,695 58,208 8,695 12,953 45,254 - 242,214 660,995 - 370,896 - - 10,686 4 - 25,910 - -190 - 660,995 - 379,092 - 58,044 - 13,174 62,944 - 2,912,703 10,637,310 5,331,882 5,305,428 5,894,006 4,760,830 1,133,176 2,185,306 689,588 1,495,718 233,642 216 22,043,871 18 TOGDAHN GROUP.. Market Value Net As of Transfers Contributions Distributions 10/01/2010 Capital Fees Expenses Income Apprec./ Deprec. Market Value As of 09/30/2011 Total Domestic Equity 10,225,481 947,500 - - 103,110 - 5,752 162,713 - 589,520 10,637,310 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 September 30, 2011 5,015,554 5,209,926 3,127,979 308,543 3,127,979 308,543 4,974,315 3,995,403 978,912 1,958,745 32,112 20,946,948 473,750 - 58,270 -2,808 51,980 - 148,324 5,331,882 473,750 - 44,840 -2,944 110,733 - 441,196 5,305,428 19 - - 24,293 - 24,293 - 4,495 11,505 - 325,849 3,093,390 -4,495 11,505 - 325,849 3,093,390 673,700 - -9,841 -476 17,352 238,956 578,950 - - 186,476 94,750 -9,841 -476 17,352 52,480 628,316 1,300,000 - - 30,738 - 17,444 90,223 214,950 628,316 - 30,738 -7,154 34,383 64,781 1,300,000 - 10,290 55,840 150,168 - 3,200,533 2,681,327 - 1,165,350 -8,854 - 31,720 26 - 29,210 - -2,497 -190 2 - - 2,681,327 - 1,196,088 - 166,038 - 42,634 281,820 - 461,464 5,894,006 4,760,830 1,133,176 2,185,306 689,588 1,495,718 233,642 216 22,043,871 Trtr BOGDAHN GROUP.. 1 Quarter Oct -2010 To Sep -2011 1 3 5 Since Inception Year Years Years Inception Date 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 Winter Springs General Employees General Plan and Trust Comparative Performance Trailing Returns As of September 30, 2011 (81) -11.71 - 9.44 (39) - 2.27 - 10.19 -1.25 (82) 2.54 (13) -3.79 0.40 (82) -1.25 2.54 (13) -3.79 0.40 (68) 3.33 3.93 (49) -0.60 3.90 0.73 2.01 (51) -1.28 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 Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See 2 n nchmark history for details. (91) 2.88 (88) 11/01/2000 0.33 3.74 -11.74 (82) -1.14 (81) -1.14 (81) 3.27 (70) N/A -2.16 (88) 10/01/2007 - 9.44 (39) 2.54 (13) 2.54 (13) 3.93 (49) 2.01 (51) -0.33 (34) - 2.30 -3.68 -3.68 -0.66 N/A -1.83 - 10.19 0.40 0.40 3.90 2.03 -0.78 Total Fund (Gross) -11.50 (78) -0.41 (68) -0.41 (68) 4.11 (43) 1.44 (77) 3.60 (59) 11/01/2000 Total Fund Policy -9.44 (39) 2.54 (13) 2.54 (13) 3.93 (49) 2.01 (51) 2.55 (98) Difference -2.06 -2.95 -2.95 0.18 -0.57 1.05 All Public Plans -Total Fund Median -10.19 0.40 0.40 3.90 2.03 3.74 Total Fund (New Mgrs) (Gross) -11.53 (78) -0.44 (68) -0.44 (68) 3.99 (47) N/A -1.55 (76) 10/01/2007 Total Fund Policy -9.44 (39) 2.54 (13) 2.54 (13) 3.93 (49) 2.01 (51) -0.33 (34) Difference -2.09 -2.98 -2.98 0.06 N/A -1.22 All Public Plans -Total Fund Median -10.19 0.40 0.40 3.90 2.03 -0.78 E E OGDAHN GROUP. Winter Springs General Employees General Plan and Trust Comparative Performance Trailing Returns As of September 30, 2011 Oct -2010 1 1 3 5 Since Inception To Quarter Sep -2011 Year Years Years Inception Date Total Equity Total Equity Policy Difference Total Domestic Equity Total Domestic Equity Policy Difference IM U.S. Large Cap Core Equity (SA +CF) -18.13 - 16.13 - 2.00 -4.58 - 1.66 - 2.92 -4.58 - 1.66 - 2.92 2.35 0.03 2.32 -1.12 -1.88 0.76 2.05 0.56 1.49 01/01/2001 -17.20 (85) -3.30 (89) -3.30 (89) 1.86 (42) -0.53 (51) 1.85 (34) 11/01/2000 - 15.28 (59) 0.55 (56) 0.55 (56) 1.27 (57) -1.15 (74) -0.24 (87) - 1.92 -3.85 -3.85 0.59 0.62 2.09 - 14.94 0.96 0.96 1.51 -0.52 0.86 Total International Equity - 21.20 (78) -8.75 (53) -8.75 (53) 4.47 (17) -3.15 (71) 2.76 (96) 11/01/2000 MSCI EAFE Index -18.95 (55) -8.94 (56) -8.94 (56) -0.66 (70) -3.00 (70) 2.08 (97) Difference -2.25 0.19 0.19 5.13 -0.15 0.68 IM International Large Cap Value Equity (SA +CF) -18.72 -8.61 -8.61 0.39 -1.88 5.54 Total Fixed Income 2.02 4.67 4.67 8.13 5.96 6.07 11/01/2000 Total Fixed Policy 2.30 4.22 4.22 7.12 6.16 6.12 Difference -0.28 0.45 0.45 1.01 -0.20 -0.05 Total Real Estate 3.14 15.96 15.96 -6.98 N/A -4.18 10/01/2007 NCREIF Fund Index -Open End Diversified Core (EW) 3.58 18.34 18.34 -6.38 0.02 -4.08 Difference -0.44 -2.38 -2.38 -0.60 N/A -0.10 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. E E OGDAHN GROUP. Oct -2010 1 1 3 5 Since Inception To Quarter Sep -2011 Year Years Years Inception Date Dalton, Greiner, Hartman, Maher & Co. Russell 3000 Value Index Difference IM U.S. All Cap Value Equity (SA +CF) Winter Springs General Employees General Plan and Trust Comparative Performance Trailing Returns As of September 30, 2011 (61) -17.84 - 16.63 (47) -1.21 - 16.98 -5.35 (91) - 2.22 (62) - 3.13 - 1.44 -5.35 - 2.22 (62) - 3.13 - 1.44 (91) N/A -1.62 (94) N/A 1.58 N/A - 3.50 (94) N/A - 0.20 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See 2nchmark history for details. 14.00 (46) 12.53 (65) 1.47 13.69 05/01/2009 Lateef Asset Mgmt.Equity -16.55 (75) -1.17 (74) -1.17 (74) 3.61 (42) N/A -1.44 (21) 10/01/2007 Russell 1000 Growth Index -13.14 (26) 3.78 (25) 3.78 (25) 4.69 (26) 1.62 (39) -2.39 (32) Difference -3.41 -4.95 -4.95 -1.08 N/A 0.95 IM U.S. Large Cap Growth Equity (SA +CF) -14.62 1.03 1.03 2.96 0.95 -3.33 RBC Global (Voyageur) -21.20 (78) -8.75 (53) -8.75 (53) 4.47 (17) N/A -9.07 (62) 11/01/2007 MSCI EAFE Index - 18.95 (55) -8.94 (56) -8.94 (56) -0.66 (70) -3.00 (70) -10.10 (75) Difference -2.25 0.19 0.19 5.13 N/A 1.03 IM International Large Cap Value Equity (SA +CF) -18.72 -8.61 -8.61 0.39 -1.88 -8.48 Galliard Core Fixed Income 2.13 (41) 4.16 (24) 4.16 (24) 8.57 (27) N/A 5.91 (84) 10/01/2007 Barclays Capital Intermediate Aggregate 2.30 (33) 4.22 (20) 4.22 (20) 7.12 (79) 6.16 (63) 6.37 (61) Difference -0.17 -0.06 -0.06 1.45 N/A -0.46 IM U.S. Intermediate Duration (SA +CF) 2.01 3.59 3.59 7.84 6.40 6.61 Galliard TIPS 1.57 (94) 6.74 (94) 6.74 (94) 5.98 (95) N/A 6.42 (94) 10/01/2007 Barclays Capital U.S. TIPS 4.51 (65) 9.87 (36) 9.87 (36) 8.13 (67) 7.10 (68) 7.64 (72) Difference -2.94 -3.13 -3.13 -2.15 N/A -1.22 IM U.S. TIPS (SA +CF) 4.73 9.78 9.78 8.42 7.24 7.80 American Core Realty Fund 3.19 (N /A) 16.11 (N /A) 16.11 (N /A) -6.94 (N /A) N/A -4.15 (N /A) 10/01/2007 American Core Realty Policy 3.58 (N /A) 18.34 (N /A) 18.34 (N /A) -0.82 (N /A) N/A 0.67 (N /A) Difference -0.39 -2.23 -2.23 -6.12 N/A -4.82 IM U.S. Open End Private Real Estate (SA +CF) N/A N/A N/A N/A N/A N/A Intercontinental 3.12 (N /A) 16.24 (N /A) 16.24 (N /A) N/A N/A 16.24 (N /A) 10/01/2010 NCREIF Fund Index -Open End Diversified Core (EW) 3.58 (N /A) 18.34 (N /A) 18.34 (N /A) -6.38 (N /A) 0.02 (N /A) 18.34 (N /A) Difference -0.46 -2.10 -2.10 N/A N/A -2.10 IM U.S. Open End Private Real Estate (SA +CF) N/A N/A N/A N/A N/A N/A rOGDAHN /� GROUP. Winter Springs General Employees General Plan and Trust Comparative Performance Fiscal Year Returns As of September 30, 2011 Oct -2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 Oct -2005 Oct -2004 To To To To To To To Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 Sep -2006 Sep -2005 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 -1.25 (82) 2.54 (13) - 3.79 0.40 (27) 10.92 9.13 (74) 1.79 9.99 0.73 0.33 0.40 1.29 (58) -16.82 (91) (63) -12.11 (30) -4.71 -13.67 13.03 11.97 1.06 14.39 (74) Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See 2nchmark history for details. 7.89 (88) 9.55 -1.66 8.59 (64) 11.07 (32) 10.76 (69) 0.31 12.49 (66) -1.14 (81) 10.66 (33) 0.68 (59) -16.82 (91) N/A N/A N/A 2.54 (13) 9.13 (74) 0.33 (63) -12.11 (30) 11.97 (88) 9.55 (32) 10.76 (69) - 3.68 1.53 0.35 -4.71 NIA N/A NIA 0.40 9.99 1.29 -13.67 14.39 8.59 12.49 Total Fund (Gross) -0.41 (68) 11.71 (16) 1.44 (48) -16.46 (89) 13.92 (58) 8.62 (50) 11.82 (59) Total Fund Policy 2.54 (13) 9.13 (74) 0.33 (63) -12.11 (30) 11.97 (88) 9.55 (32) 10.76 (69) Difference -2.95 2.58 1.11 -4.35 1.95 -0.93 1.06 All Public Plans -Total Fund Median 0.40 9.99 1.29 -13.67 14.39 8.59 12.49 Total Fund (New Mgrs) (Gross) -0.44 (68) 11.40 (21) 1.39 (49) -16.46 (89) N/A N/A N/A Total Fund Policy 2.54 (13) 9.13 (74) 0.33 (63) -12.11 (30) 11.97 (88) 9.55 (32) 10.76 (69) Difference -2.98 2.27 1.06 -4.35 N/A N/A N/A All Public Plans -Total Fund Median 0.40 9.99 1.29 -13.67 14.39 8.59 12.49 E E OGDAHN GROUP. Winter Springs General Employees General Plan and Trust Comparative Performance Fiscal Year Returns As of September 30, 2011 Oct -2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 Oct -2005 Oct -2004 To To To To To To To Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 Sep -2006 Sep -2005 Total Equity Total Equity Policy Difference Total Domestic Equity Total Domestic Equity Policy Difference IM U.S. Large Cap Core Equity (SA +CF) -4.58 - 2.92 13.61 4.27 -1.09 -6.91 5.82 -25.61 -21.98 -3.63 18.52 16.44 2.08 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See benchmark history for details. 10.83 -1.68 15.40 1.10 -3.30 (89) 14.19 (8) -4.29 (36) -21.66 (63) 17.58 (43) 9.29 (67) 13.77 (64) 0.55 (56) 10.96 (31) -6.91 (62) -21.98 (68) 16.44 (60) 10.79 (48) 12.25 (78) - 3.85 3.23 2.62 0.32 1.14 - 1.50 1.52 0.96 9.51 -5.88 -20.48 16.98 10.76 15.16 Total International Equity -8.75 (53) 11.69 (12) 11.87 (22) -39.55 (100) 23.63 (56) 19.84 (67) 26.83 (50) MSCI EAFE Index -8.94 (56) 3.71 (63) 3.80 (60) -30.13 (71) 25.38 (41) 19.65 (70) 26.32 (59) Difference 0.19 7.98 8.07 -9.42 -1.75 0.19 0.51 IM International Large Cap Value Equity (SA +CF) -8.61 4.84 5.03 -27.53 24.09 20.89 26.82 Total Fixed Income 4.67 9.27 10.53 0.64 4.96 3.27 2.81 Total Fixed Policy 4.22 7.52 9.69 4.16 5.33 3.55 2.80 Difference 0.45 1.75 0.84 -3.52 -0.37 -0.28 0.01 Total Real Estate 15.96 (N /A) 2.71 (80) -32.42 (38) 4.72 (39) N/A N/A N/A NCREIF Fund Index -Open End Diversified Core (EW) 18.34 (N /A) 6.97 (47) -35.19 (53) 3.18 (52) 18.21 (56) 17.45 (55) 19.66 (60) Difference -2.38 -4.26 2.77 1.54 N/A N/A N/A IM U.S. Open End Private Real Estate (SA +CF) N/A 6.60 -33.44 3.47 18.53 18.08 19.98 rOGDAHN ,? GROUP. Oct -2010 Oct -2009 Oct -2008 Oct -2007 Oct -2006 Oct -2005 Oct -2004 To To To To To To To Sep -2011 Sep -2010 Sep -2009 Sep -2008 Sep -2007 Sep -2006 Sep -2005 Dalton, Greiner, Hartman, Maher & Co. Russell 3000 Value Index Difference IM U.S. All Cap Value Equity (SA +CF) Winter Springs General Employees General Plan and Trust Comparative Performance Fiscal Year Returns As of September 30, 2011 -5.35 (91) - 3.13 - 1.44 16.63 9.15 7.48 10.74 N/A (70) -10.79 N/A -3.68 (11) N/A (94) -22.70 (78) N/A -19.98 N/A 13.73 N/A 16.80 Returns for periods greater than one year are annualized. Returns are expressed as percentages. 10/1/2007 inception date represents the date new managers were hired. Total Fund Policy represents new policy beginning 10/1/2009. Old policy geometrically linked to new policy. See 2nchmark history for details. N/A (76) 14.55 N/A 10.47 N/A (18) 16.78 (63) N/A 20.20 Lateef Asset Mgmt.Equity -1.17 (74) 11.93 (42) 0.53 (22) -15.13 (16) N/A N/A N/A Russell 1000 Growth Index 3.78 (25) 12.65 (35) -1.85 (37) -20.88 (52) 19.35 (57) 6.04 (57) 11.60 (71) Difference -4.95 -0.72 2.38 5.75 N/A N/A N/A IM U.S. Large Cap Growth Equity (SA +CF) 1.03 11.25 -3.03 -20.55 20.19 6.77 14.22 RBC Global (Voyageur) -8.75 (53) 11.69 (12) 11.87 (22) N/A N/A N/A N/A MSCI EAFE Index -8.94 (56) 3.71 (63) 3.80 (60) -30.13 (71) 25.38 (41) 19.65 (70) 26.32 (59) Difference 0.19 7.98 8.07 N/A N/A N/A N/A IM International Large Cap Value Equity (SA +CF) -8.61 4.84 5.03 -27.53 24.09 20.89 26.82 Gaillard Core Fixed Income 4.16 (24) 9.63 (17) 12.08 (41) -1.68 (93) N/A N/A N/A Barclays Capital Intermediate Aggregate 4.22 (20) 7.52 (79) 9.69 (82) 4.16 (34) 5.33 (69) 3.84 (59) 2.23 (42) Difference -0.06 2.11 2.39 -5.84 N/A N/A N/A IM U.S. Intermediate Duration (SA +CF) 3.59 8.27 11.53 3.21 5.49 3.91 2.09 Gaillard TIPS 6.74 (94) 7.28 (95) 3.97 (89) 7.72 (17) N/A N/A N/A Barclays Capital U.S. TIPS 9.87 (36) 8.89 (78) 5.67 (66) 6.20 (63) 4.97 (65) 1.91 (85) 5.32 (47) Difference -3.13 -1.61 -1.70 1.52 N/A N/A N/A IM U.S. TIPS (SA +CF) 9.78 9.35 6.18 6.35 5.11 2.14 5.26 American Core Realty Fund 16.11 (N /A) 2.71 (80) -32.42 (38) 4.72 (39) N/A N/A N/A American Core Realty Policy 18.34 (N /A) 5.84 (55) -22.09 (6) 5.27 (28) N/A N/A N/A Difference -2.23 -3.13 -10.33 -0.55 N/A N/A N/A IM U.S. Open End Private Real Estate (SA +CF) N/A 6.60 -33.44 3.47 18.53 18.08 19.98 Intercontinental 16.24 (N /A) N/A N/A N/A N/A N/A N/A NCREIF Fund Index -Open End Diversified Core (EW) 18.34 (N /A) 6.97 (47) -35.19 (53) 3.18 (52) 18.21 (56) 17.45 (55) 19.66 (60) Difference -2.10 N/A N/A N/A N/A N/A N/A IM U.S. Open End Private Real Estate (SA +CF) N/A 6.60 -33.44 3.47 18.53 18.08 19.98 Z IN N THE BOGDAHN GROUP. Financial Reconciliation 1 Quarter Total Fund (Gross) Total Fund (Gross) Median 12.00 8.00 4.00 0 0.00 C4 -4.00 -8.00 -12.00 -16.00 -20.00 • Total Fund (Gross) • Total Fund Policy Total Fund (Gross) Total Fund Policy All Public Plans -Total Fund Median 1 Quarter -11.50 (78) -9.44 (39) -10.19 Market Value As of 07/01/2011 24,683 Net Transfers Financial Reconciliation October 1, 2010 To September 30, 2011 Market Value As of 10/01/2010 20,947 Oct -2010 To Sep -2011 0.40 1 Quarter Ending Jun -2011 Net Transfers Peer Group Analysis - All Public Plans -Total Fund 1.07 (52) 1.34 (30) 1.09 1 Year -0.41 (68) -0.41 (68) 2.54 (13) 2,54 (13) 0.40 Winter Springs General Employees General Plan and Trust Total Fund (Gross) September 30, 2011 2 Years 5.48 (39) 4.11 (43) 5.78 (32) 3.93 (49) 5.13 Contributions 661 Contributions 2,681 1 Quarter Ending Mar -2011 4.92 (10) 4.31 (36) 4.08 3 Years 3.90 Distributions -379 Distributions -1,196 • 4 Years -0.78 26 1 Quarter Ending Dec -2010 6.12 (53) 7.11 (19) 6.21 Fees -58 Fees -166 5 Years -1.46 (73) 1.44 (77) -0.33 (34) 2.01 (51) 2.03 Expenses -13 Expenses -43 $170.0 $160.0 $150.0 $140.0 $130.0 $120.0 $110.0 $100.0 $90.0 $80.0 $70.0 1 Quarter Ending Sep -2010 10.11 (11) 9.08 (37) 8.76 Income 63 Income 282 2/01 6/02 12/03 6/05 12/06 6/08 12/09 Total Fund (Gross) Total Fund Policy 1 Quarter Ending Jun -2010 -6.15 (65) -6.63 (79) -5.82 Capital Apprec./ Deprec. -2,913 Capital Apprec./ Deprec. -461 Market Value As of 09/30/2011 22,044 Market Value As of 09/30/2011 22,044 Cummulative Performance 9/11 1 Quarter Ending Mar -2010 4.50 (14) 3.63 (64) 3.82 Comparative Performance THE BOGDAHN GROUP. 3 Yr Rolling Under /Over Performance - 5 Years 15.0 10.0 5.0 0.0 -5.0 -10.0 6.00 3.00 a 0.00 -3.00 Total Fund (Gross) Total Fund Policy Total Fund (Gross) Total Fund Policy -9.0 -6.0 -3.0 0.0 3.0 6.0 Total Fund Policy ( %) ■ Under Performance A Dec -2006 ■ Over Performance Peer Group Scattergram - 3 Years • Tracking Error 2.81 0.00 Tracking Error 2.72 0.00 Risk (Standard Deviation %) Return Winter Springs General Employees General Plan and Trust Total Fund (Gross) September 30, 2011 Standard Deviation 16.93 • Total Fund (Gross) 4.11 • Total Fund Policy 3.93 15.19 Median 3.90 15.52 Up Ma rket Capture 107.88 100.00 Up Market Capture 109.32 100.00 9.0 12.0 Sep -2011 Down Market Capture 107.18 100.00 Down Market Capture 115.67 100.00 15.0 27 3 Yr Rolling Percentile Ranking - 5 Years 0.00 25.00 50.00 75.00 100.00 • Total Fund (Gross) • Total Fund Policy Peer Group Scattergram - 5 Years 4.40 2.20 o.00 -2.20 Alpha -0.05 0:00 Alpha -0.66 0.00 1 U 1•• •••• • •• 1 •• • •• ■• ••�m • a•• • • 1 • • • 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 9/11 Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count 20 1 (5 %) 2 (10 %) 10 (50 %) 7 (35 %) 20 0 (0%) 9 (45%) • 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 Historical Statistics - 3 Years Information Ratio 0.17 N/A Historical Statistics - 5 Years Information Ratio -0.12 N/A Risk (Standard Deviation %) • Total Fund (Gross) 1.44 • Total Fund Policy 2.01 12.61 Median 2.03 13.32 Sharpe Ratio 0.31 0.32 Sharpe Ratio 0.05 0.09 Return Standard Deviation 14.24 Beta 1.10 1.00 Beta 1.00 10 (50%) 1 (5%) 14.00 16.00 Downside Risk 11.77 10.32 Downside Risk 10.01 8.63 18.00 THE BOGDAHN GROUP. Financial Reconciliation 1 Quarter Total Domestic Equity Financial Reconciliation October 1, 2010 To September 30, 2011 Total Domestic Equ Peer Group Analysis - IM U.S. Large Cap Core Equity (SA +CF) Median ty 15.00 10.00 5.00 0.00 -5.00 O4 -10.00 -15.00 -20.00 -25.00 • Total Domestic Equity • Total Domestic Equity Policy Total Domestic Equity Total Domestic Equity Policy IM U.S. Large Cap Core Equity (SA +CF) Market Value As of 07/01/2011 12,768 Market Value As of 10/01/2010 10,225 1 Quarter • Oct -2010 To Sep -2011 Net Transfers 118 Net Transfers 948 1 Quarter Ending Jun -2011 Winter Springs General Employees General Plan and Trust Total Domestic Equity September 30, 2011 0.27 (57) -0.03 (65) 0.47 Contributions Contributions 1 Quarter Ending Mar -2011 6.86 (36) 6.38 (47) 6.30 Distributions Distributions 1 2 3 4 5 Year Years Years Years Years -14.94 0.96 0.96 5.01 1.51 -4.31 -0.52 28 1 Quarter Ending Dec -2010 8.99 (88) 11.59 (29) 10.89 Fees -43 Fees -103 -17.20 (85) -3.30 (89) -3.30 (89) 5.08 (50) 1.86 (42) -4.61 (57) -0.53 (51) -15.28 (59) 0.55 (56) 0.55 (56) 5.63 (38) 1.27 (57) -5.12 (69) -1.15 (74) Expenses Expenses $160.0 $150.0 $140.0 $130.0 $120.0 Si 10.0 $100.0 $90.0 $80.0 $70.0 $60.0 $50.0 -6 1 Quarter Ending Sep -2010 12.92 (11) 11.53 (34) 11.03 Income 38 Income 163 Capital Apprec./ Deprec. -2,241 Capital Apprec./ Deprec. -590 Market Value As of 09/30/2011 10,637 Market Value As of 09/30/2011 10,637 Cumulative Performance 2/01 6/02 12/03 6/05 12/06 6/08 12/09 9/11 - Total Domestic Equity - Total Domestic Equity Policy 1 Quarter Ending Jun -2010 -10.12 (20) -11.32 (46) -11.45 1 Quarter Ending Mar -2010 5.72 (33) 5.94 (25) 5.25 Comparative Performance THE BOGDAHN GROUP. 3 Yr Rolling Under /Over Performance - 5 Years 20.0 • 10.0 • 0.0 -10.0 -20.0 Peer Group Scattergram - 3 Years 5.00 E 0.00 a -5.00 -20.0 -16.0 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 Total Domestic Equity Policy ( %) ■ Under Performance A Dec -2006 0 Sep -2011 ■ Over Performance • • 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 Risk (Standard Deviation %) Historical Statistics - 3 Years Total Domestic Equity Total Domestic Equity Policy Total Domestic Equity Total Domestic Equity Policy • Total Domestic Equity 1.86 • Total Domestic Equity Policy 1.27 24.67 Median 1.51 23.91 Tracking Error 4.04 0.00 Tracking Error 4.56 0.00 Return Winter Springs General Employees General Plan and Trust Total Domestic Equity September 30, 2011 Standard Deviation 25.47 Up Market Capture 104.47 100.00 Up Market Capture 101.16 100.00 Down Market Capture 102.15 100.00 Down Market Capture 98.18 100.00 29 3 Yr Rolling Percentile Ranking - 5 Years 0.00 25.00 50.00 75.00 100.00 • Total Domestic Equity • Total Domestic Equity Policy 20 Peer Group Scattergram - 5 Years 3.00 0.00 -3.00 -6.00 6.00 Alpha 0.70 0.00 Alpha 0.76 0.00 •i m, e . • • • • • • • • ■ • • • • • ■ • • • • • 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 9/11 Total Period 20 5 -25 25- Median Median -75 75 -95 Count Count Count Count 1 (5 %) 8 (40 %) 7 (35 %) 4 (20 %) 0 (0 %) 1 (5 %) 17 (85 %) 2 (10 %) 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 Risk (Standard Deviation %) Information Ratio 0.21 N/A Information Ratio 0.17 N/A Sharpe Ratio 0.19 0.16 Sharpe Ratio -0.02 -0.06 Return Standard Deviation 21.03 • Total Domestic Equity -0.53 • Total Domestic Equity Policy -1.15 20.52 Median -0.52 20.19 Beta 1.04 1.00 Beta 1.01 1.00 • Downside Risk 16.47 15.93 Historical Statsistics - 5 Years Downside Risk 14.40 14.09 THE BOGDAHN \--" GROUP. Financial Reconciliation 1 Quarter Lateef Asset Mgmt.Equity Lateef Asset Mgmt.Equity Median 15.00 10.00 5.00 r. 0.00 z -5.00 -10.00 -15.00 -20.00 -25.00 • Lateef Asset Mgmt.Equity • Russell 1000 Growth Index -14.62 Lateef Asset Mgmt.Equity Russell 1000 Growth Index IM U.S. Large Cap Growth Equity (SA +CF) Market Value As of 07/01/2011 1 Quarter 6,360 Financial Reconciliation October 1, 2010 To September 30, 2011 Market Value As of 10/01/2010 5,016 Oct -2010 To Sep -2011 1.03 Winter Springs General Employees General Plan and Trust Lateef Asset Mgmt.Equity September 30, 2011 Net Transfers 59 Net Transfers 474 Contributions Contributions Peer Group Analysis - IM U.S. Large Cap Growth Equity (SA +CF) 1 Year 1.03 1 Quarter Ending Jun -2011 1.44 (26) 0.76 (46) 0.59 2 Years -16.55 (75) -1.17 (74) -1.17 (74) 5.18 (60) 3.61 (42) -1.44 (21) N/A -13.14 (26) 3.78 (25) 3.78 (25) 8.12 (24) 4.69 (26) -2.39 (32) 1.62 (39) 5.95 3 Years 2.96 1 Quarter Ending Mar -2011 6.57 (30) 6.03 (46) 5.83 Distributions Distributions -3.33 Comparative Performance 30 4 Years 1 Quarter Ending Dec -2010 9.55 (84) 11.83 (49) 11.77 5 Years 0.95 Fees -31 Fees -58 $ 120.0 $110.0 $100.0 $90.0 $80.0 $70.0 $60.0 $50.0 Expenses Expenses -3 11 1 Quarter Ending Sep -2010 13.95 (26) 13.00 (38) 12.27 6/08 Income 9 Income 52 Cumulative Performance 3/09 - Lateef Asset Mgmt.Equity - Russell 1000 Growth Index 1 Quarter Ending Jun -2010 12/09 -11.88 (56) -11.75 (53) -11.63 Capital Apprec./ Deprec. -1;063 Capital Apprec./ Deprec. -148 9/10 Market Value As of 09/30/2011 5,332 Market Value As of 09/30/2011 5,332 9/11 1 Quarter Ending Mar -2010 5.33 (33) 4.65 (52) 4.71 THE BOGDAHN GROUP. 3 Yr Rolling Under /Over Performance - 5 Years Peer Group Scattergram - 3 Years 10.00 °'° 5.00 0.00 -5.00 -6.0 -4.0 -2.0 0.0 2.0 4.0 Russell 1000 Growth Index ( %) Over Performance A Dec -2006 + Sep -2011 Lateef Asset Mgmt.Equity Russell 1000 Growth Index Lateef Asset Mgmt.Equity Russell 1000 Growth Index Risk (Standard Deviation %) Tracking Error 4.56 0.00 Tracking Error N/A 0.00 Winter Springs General Employees General Plan and Trust Lateef Asset Mgmt.Equity September 30, 2011 6.0 Up Market Capture 93.12 100.00 Up Market Capture N/A 100.00 8.0 10.0 Down Market Capture 96.15 100.00 Down Market Capture N/A 100.00 31 3 Yr Rolling Percentile Ranking - 5 Years 0.00 25.00 50.00 75.00 100.00 • Lateef Asset Mgmt.Equity • Russell 1000 Growth Index 20 0 (0 %) 8 (40 %) 11 (55 %) 1 (5 %) Peer Group Scattergram - 5 Years - 4.00 0.00 a -4.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 Alpha -0.83 0.00 Alpha N/A 0.00 • • • • • • • • • • • • • • • • • • • • • • 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 9/11 • Information Ratio -0.27 N/A Information Ratio N/A N/A Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count 5 4 (80 %) 1 (20 %) 0 (0 %) 0 (0 %) Risk (Standard Deviation %) Return Standard Return Standard Deviation Deviation • Lateef Asset Mgmt.Equity 3.61 23.37 • Lateef Asset Mgmt.Equity N/A N/A • Russell 1000 Growth Index 4.69 23.78 • Russell 1000 Growth Index 1.62 20.40 Median 2.96 24.10 Median 0.95 21.02 22.00 24.00 Historical Statistics - 3 Years Sharpe Ratio 0.27 0.32 Sharpe Ratio N/A 0.09 Beta 0.94 1.00 Beta N/A 1.00 26.00 28.00 Downside Risk 13.58 14.95 Historical Statsistics - 5 Years Downside Risk N/A 13.76 \ TH L BOGDAHN GROUP. 32 fi�tr BOGDAHN GROUP. Financial Reconciliation 1 Quarter Dalton, Greiner, Hartman, Maher & Co. Dalton, Greiner, Hartman, Maher & Co. • Russell 3000 Value Index Median 15.00 10.00 5.00 0.00 -5.00 -10.00 -15.00 -20.00 -25.00 Dalton, Greiner, Hartman, Maher & Co. Russell 3000 Value Index IM U.S. All Cap Value Equity (SA +CF) -16.98 Market Value As of 07/01/2011 6,408 Market Value As of 10/01/2010 5,210 -1.44 1 Quarter Ending Jun -2011 - 0.86 (70) -0.68 (65) -0.18 Winter Springs General Employees General Plan and Trust Dalton, Greiner, Hartman, Maher & Co. September 30, 2011 Net Transfers Financial Reconciliation October 1, 2010 To September 30, 2011 Net Transfers Peer Group Analysis - IM U.S. All Cap Value Equity (SA +CF) -1.44 59 474 4.36 Contributions Contributions 1 Quarter Ending Mar -2011 7.13 (41) 6.47 (48) 6.37 1.58 Distributions Distributions Oct -2010 1 1 2 3 4 5 To Quarter Sep -2011 Year Years Years Years Years • Dalton, Greiner, Hartman, Maher & Co. -17.84 (61) -5.35 (91) -5.35 (91) 5.07 (44) N/A N/A N/A -16.63 (47) -2.22 (62) -2.22 (62) 3.31 (65) -1.62 (94) -7.38 (90) -3.50 (94) 33 -3.99 Comparative Performance 1 Quarter Ending Dec -2010 -0.20 8.45 (89) 10.92 (59) 11.40 Fees -12 Fees -45 $160.0 $150.0 $140.0 $130.0 $120.0 Si 10.0 $100.0 Expenses Expenses -3 1 Quarter Ending Sep -2010 11.94 (30) 10.10 (69) 10.83 Income 29 Income 111 - Dalton, Greiner, Hartman, Maher & Co. - Russell 3000 Value Index 1 Quarter Ending Jun -2010 -8.39 (18) -11.09 (61) -10.60 Capital Apprec./ Deprec. -1,178 Capital Apprec./ Deprec. -441 8/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 Market Value As of 09/30/2011 5,305 Market Value As of 09/30/2011 5,305 Cumulative Performance 1 Quarter Ending §13g:g Mar -2010 6.12 (59) 7.05 (43) 6.52 THE t OGDAHN GROUP. Financial Reconciliation 1 Quarter Total International Equity Total International Equity • MSCI EAFE Index Median 10.00 5.00 0.00 E -5.00 .14 -10.00 -15.00 -20.00 -25.00 -30.00 • -18.72 Total International Equity MSCI EAFE Index IM International Large Cap Value Equity (SA +CF) Market Value As of 07/01/2011 3,887 Market Value As of 10/01/2010 3,128 -8.61 Winter Springs General Employees General Plan and Trust Total International Equity September 30, 2011 Net Transfers 45 Financial Reconciliation October 1, 2010 To September 30, 2011 Net Transfers 309 -8.61 1 Quarter Ending Jun -2011 0.67 (72) 1.83 (42) 1.61 • -1.37 Contributions Contributions 0.39 1 Quarter Ending Mar -2011 4.69 (22) 3.45 (54) 3.55 Distributions Distributions Peer Group Analysis - IM International Large Cap Value Equity (SA +CF) Oct -2010 1 1 2 3 4 5 To Quarter Sep -2011 Year Years Years Years Years • Total International Equity -21.20 (78) -8.75 (53) -8.75 (53) 0.95 (20) 4.47 (17) -8.89 (73) -3.15 (71) -18.95 (55) -8.94 (56) -8.94 (56) -2.82 (63) -0.66 (70) -9.03 (75) -3.00 (70) -7.55 34 -1.88 1 Quarter Ending Dec -2010 9.87 (5) 6.65 (55) 6.73 Fees -9 Fees -24 $200.0 $180.0 $160.0 $140.0 $120.0 $100.0 Expenses Expenses $80.0 $60.0 -4 1 Quarter Ending Sep -2010 19.39 (8) 16.53 (34) 15.76 Income 12 Income 12 1 Quarter Ending Jun -2010 -12.31 (50) -13.75 (80) -12.34 Capital Apprec./ Deprec. -840 Capital Apprec./ Deprec. -326 2/01 6/02 12/03 6/05 12/06 6/08 12/09 Total International Equity MSCI EAFE Index Market Value As of 09/30/2011 3,093 Market Value As of 09/30/2011 3,093 Cumulative Performance 9/11 $135:6 Comparative Performance 1 Quarter Ending Mar -2010 5.07 (3) 0.94 (66) 1.71 TH L BOGDAHN GROUP. 3 Yr Rolling Under /Over Performance - 5 Years 30.0 o. 20.0 10.0 0.0 -10. o -20.0 -20.0 ■ Over Performance -10.0 0.0 10.0 MSCI EAFE Index ( %) ■ Under Performance ® Dec -2006 Peer Group Scattergram - 3 Years 6.00 0.00 z -6.00 • Total International Equity MSCI EAFE Index Total International Equity MSCI EAFE Index 16.00 18.00 20.00 22.00 24.00 26.00 28.00 Risk (Standard Deviation %) Return Standard Deviation • Total International Equity 4.47 34.40 • MSCI EAFE Index -0.66 28.95 Median 0.39 28.00 Tracking Error 7.90 0.00 Tracking Error 8.00 0.00 Winter Springs General Employees General Plan and Trust Total International Equity September 30, 2011 Up Market Capture 116.55 100.00 Up Market Capture 107.52 100.00 20.0 Sep -2011 30.0 Down Market Capture 99.41 100.00 Down Market Capture 104.86 100.00 35 3 Yr Rolling Percentile Ranking - 5 Years 0.00 25.00 50.00 75.00 100.00 • Total International Equ • MSCI EAFE Index Peer Group Scattergram - 5 Years 0.00 -5.00 -10.00 30.00 32.00 34.00 36.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 Risk (Standard Deviation %) Historical Statistics - 3 Years Alpha 6.03 0.00 Historical Statsistics - 5 Years Alpha 0.81 0.00 • • i . • • • • • • • • • • • • el • • • • • • _ _ . ■ ■ ■ ■ • r 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 9/11 ri Information Ratio 0.78 N/A Information Ratio 0.09 N/A Total Period 20 20 5 -25 25- Median Median -75 75 -95 Count Count Count Count 1 (5 %) 2 (10 %) 7 (35 %) 10 (50 %) 0 (0 %) 2 (10 %) 17 (85 %) 1 (5 %) • Total International Equity -3.15 • MSCI EAFE Index -3.00 25.31 Median -1.88 24.30 Sharpe Ratio 0.29 0.09 Sharpe Ratio -0.06 -0.10 Return Standard Deviation 30.43 Beta 1.12 1.00 Beta 1.00 Downside Risk 20.24 18.36 Downside Risk 19.27 16.85 • TH L BOGDAHN GROUP. Financial Reconciliation 1 Quarter RBC Global (Voyageur) RBC Global (Voyageur) • RBC Global (Voyageur) -21.20 (78) • MSCI EAFE Index Median 10.00 5.00 0.00 E -5.00 a -10.00 -15.00 -20.00 -25.00 -30.00 1 Quarter -18.72 RBC Global (Voyageur) MSCI EAFE Index IM International Large Cap Value Equity (SA +CF) Market Value As of 07/01/2011 3,887 Market Value As of 10/01/2010 3,128 Oct -2010 To Sep -2011 -8.61 Winter Springs General Employees General Plan and Trust RBC Global (Voyageur) September 30, 2011 Net Transfers 45 Financial Reconciliation October 1, 2010 To September 30, 2011 Net Transfers 309 -8.61 1 Year 1 Quarter Ending Jun -2011 0.67 (72) 1.83 (42) 1.61 Contributions Contributions 2 Years -1.37 3 Years 0.39 1 Quarter Ending Mar -2011 4.69 (22) 3.45 (54) 3.55 Distributions Distributions Peer Group Analysis - IM International Large Cap Value Equity (SA +CF) 4 Years -7.55 36 5 Years -8.75 (53) -8.75 (53) 0.95 (20) 4.47 (17) N/A N/A -18.95 (55) -8.94 (56) -8.94 (56) -2.82 (63) -0.66 (70) -9.03 (75) -3.00 (70) -1.88 1 Quarter Ending Dec -2010 9.87 (5) 6.65 (55) 6.73 Fees -9 Fees -24 Expenses Expenses $100.0 $90.0 $80.0 $70.0 $60.0 $50.0 $40.0 -4 2/08 1 Quarter Ending Sep -2010 19.39 (8) 16.53 (34) 15.76 9/08 Income 12 Income 12 6/09 1 Quarter Ending Jun -2010 -12.31 (50) -13.75 (80) -12.34 Capital Apprec./ Deprec. -840 Capital Apprec./ Deprec. -326 Market Value As of 09/30/2011 3,093 Market Value As of 09/30/2011 3,093 Cumulative Performance 3/10 12/10 RBC Global (Voyageur) MSCI EAFE Index 9/11 Comparative Performance 1 Quarter Ending Mar -2010 5.07 (3) 0.94 (66) 1.71 THE Ar c. , BOGDAHN GROUP. 3 Yr Rolling Under /Over Performance - 5 Years -8.0 -7.0 -6.0 -5.0 -4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 MSCI EAFE Index ( %) Over Performance O Dec -2006 • Sep -2011 Peer Group Scattergram - 3 Years 6.00 0.00 z -6.00 • RBC Global (Voyageur) MSCI EAFE Index RBC Global (Voyageur) MSCI EAFE Index Risk (Standard Deviation %) Return Standard Deviation • RBC Global (Voyageur) 4.47 34.40 • MSCI EAFE Index -0.66 28.95 Median 0.39 28.00 Tracking Error 7.90 0.00 Tracking Error N/A 0.00 Winter Springs General Employees General Plan and Trust RBC Global (Voyageur) September 30, 2011 Up Market Capture 116.55 100.00 Up Market Capture N/A 100.00 Down Market Capture 99.41 100.00 Down Market Capture N/A 100.00 37 3 Yr Rolling Percentile Ranking - 5 Years 0.00 25.00 50.00 75.00 100.00 • • • • � • • • • • • • • • • • • • L 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 9/11 • RBC Global (Voyageur) • MSCI EAFE Index Peer Group Scattergram - 5 Years 0.00 -5.00 -10.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 34.00 36.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 Historical Statistics - 3 Years Alpha 6.03 0.00 Alpha N/A 0.00 Information Ratio 0.78 N/A Information Ratio N/A N/A Total Period 5 -25 25- Median Count Count 4 1 (25%) 2 (50%) 20 0 (0%) 2 (10%) Risk (Standard Deviation %) Return Standard Deviation • RBC Global (Voyageur) N/A N/A • MSCI EAFE Index -3.00 25.31 Median -1.88 24.30 Sharpe Ratio 0.29 0.09 Historical Statsistics - 5 Years Sharpe Ratio N/A -0.10 Beta 1.12 1.00 Beta N/A 1.00 Median -75 Count 1 (25 %) 17 (85%) 75 -95 Count 0 (0 %) 1 (5 %) Downside Risk 20.24 18.36 Downside Risk N/A 16.85 • TH L BOGDAHN GROUP. 3 Yr Rolling Under /Over Performance - 5 Years 30.0 o. 20.0 10.0 0.0 -10. o -20.0 -20.0 ■ Over Performance -10.0 0.0 10.0 MSCI EAFE Index ( %) ■ Under Performance ® Dec -2006 Peer Group Scattergram - 3 Years 6.00 0.00 z -6.00 • Total International Equity MSCI EAFE Index Total International Equity MSCI EAFE Index 16.00 18.00 20.00 22.00 24.00 26.00 28.00 Risk (Standard Deviation %) Return Standard Deviation • Total International Equity 4.47 34.40 • MSCI EAFE Index -0.66 28.95 Median 0.39 28.00 Tracking Error 7.90 0.00 Tracking Error 8.00 0.00 Winter Springs General Employees General Plan and Trust Total International Equity September 30, 2011 Up Market Capture 116.55 100.00 Up Market Capture 107.52 100.00 20.0 Sep -2011 30.0 Down Market Capture 99.41 100.00 Down Market Capture 104.86 100.00 35 3 Yr Rolling Percentile Ranking - 5 Years 0.00 25.00 50.00 75.00 100.00 • Total International Equ • MSCI EAFE Index Peer Group Scattergram - 5 Years 0.00 -5.00 -10.00 30.00 32.00 34.00 36.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 Risk (Standard Deviation %) Historical Statistics - 3 Years Alpha 6.03 0.00 Historical Statsistics - 5 Years Alpha 0.81 0.00 • • i . • • • • • • • • • • • • el • • • • • • _ _ . ■ ■ ■ ■ • r 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 9/11 ri Information Ratio 0.78 N/A Information Ratio 0.09 N/A Total Period 20 20 5 -25 25- Median Median -75 75 -95 Count Count Count Count 1 (5 %) 2 (10 %) 7 (35 %) 10 (50 %) 0 (0 %) 2 (10 %) 17 (85 %) 1 (5 %) • Total International Equity -3.15 • MSCI EAFE Index -3.00 25.31 Median -1.88 24.30 Sharpe Ratio 0.29 0.09 Sharpe Ratio -0.06 -0.10 Return Standard Deviation 30.43 Beta 1.12 1.00 Beta 1.00 Downside Risk 20.24 18.36 Downside Risk 19.27 16.85 • TH L BOGDAHN GROUP. Financial Reconciliation 1 Quarter RBC Global (Voyageur) RBC Global (Voyageur) • RBC Global (Voyageur) -21.20 (78) • MSCI EAFE Index Median 10.00 5.00 0.00 E -5.00 a -10.00 -15.00 -20.00 -25.00 -30.00 1 Quarter -18.72 RBC Global (Voyageur) MSCI EAFE Index IM International Large Cap Value Equity (SA +CF) Market Value As of 07/01/2011 3,887 Market Value As of 10/01/2010 3,128 Oct -2010 To Sep -2011 -8.61 Winter Springs General Employees General Plan and Trust RBC Global (Voyageur) September 30, 2011 Net Transfers 45 Financial Reconciliation October 1, 2010 To September 30, 2011 Net Transfers 309 -8.61 1 Year 1 Quarter Ending Jun -2011 0.67 (72) 1.83 (42) 1.61 Contributions Contributions 2 Years -1.37 3 Years 0.39 1 Quarter Ending Mar -2011 4.69 (22) 3.45 (54) 3.55 Distributions Distributions Peer Group Analysis - IM International Large Cap Value Equity (SA +CF) 4 Years -7.55 36 5 Years -8.75 (53) -8.75 (53) 0.95 (20) 4.47 (17) N/A N/A -18.95 (55) -8.94 (56) -8.94 (56) -2.82 (63) -0.66 (70) -9.03 (75) -3.00 (70) -1.88 1 Quarter Ending Dec -2010 9.87 (5) 6.65 (55) 6.73 Fees -9 Fees -24 Expenses Expenses $100.0 $90.0 $80.0 $70.0 $60.0 $50.0 $40.0 -4 2/08 1 Quarter Ending Sep -2010 19.39 (8) 16.53 (34) 15.76 9/08 Income 12 Income 12 6/09 1 Quarter Ending Jun -2010 -12.31 (50) -13.75 (80) -12.34 Capital Apprec./ Deprec. -840 Capital Apprec./ Deprec. -326 Market Value As of 09/30/2011 3,093 Market Value As of 09/30/2011 3,093 Cumulative Performance 3/10 12/10 RBC Global (Voyageur) MSCI EAFE Index 9/11 Comparative Performance 1 Quarter Ending Mar -2010 5.07 (3) 0.94 (66) 1.71 THE Ar c. , BOGDAHN GROUP. 3 Yr Rolling Under /Over Performance - 5 Years -8.0 -7.0 -6.0 -5.0 -4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 MSCI EAFE Index ( %) Over Performance O Dec -2006 • Sep -2011 Peer Group Scattergram - 3 Years 6.00 0.00 z -6.00 • RBC Global (Voyageur) MSCI EAFE Index RBC Global (Voyageur) MSCI EAFE Index Risk (Standard Deviation %) Return Standard Deviation • RBC Global (Voyageur) 4.47 34.40 • MSCI EAFE Index -0.66 28.95 Median 0.39 28.00 Tracking Error 7.90 0.00 Tracking Error N/A 0.00 Winter Springs General Employees General Plan and Trust RBC Global (Voyageur) September 30, 2011 Up Market Capture 116.55 100.00 Up Market Capture N/A 100.00 Down Market Capture 99.41 100.00 Down Market Capture N/A 100.00 37 3 Yr Rolling Percentile Ranking - 5 Years 0.00 25.00 50.00 75.00 100.00 • • • • � • • • • • • • • • • • • • L 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 9/11 • RBC Global (Voyageur) • MSCI EAFE Index Peer Group Scattergram - 5 Years 0.00 -5.00 -10.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 34.00 36.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 Historical Statistics - 3 Years Alpha 6.03 0.00 Alpha N/A 0.00 Information Ratio 0.78 N/A Information Ratio N/A N/A Total Period 5 -25 25- Median Count Count 4 1 (25%) 2 (50%) 20 0 (0%) 2 (10%) Risk (Standard Deviation %) Return Standard Deviation • RBC Global (Voyageur) N/A N/A • MSCI EAFE Index -3.00 25.31 Median -1.88 24.30 Sharpe Ratio 0.29 0.09 Historical Statsistics - 5 Years Sharpe Ratio N/A -0.10 Beta 1.12 1.00 Beta N/A 1.00 Median -75 Count 1 (25 %) 17 (85%) 75 -95 Count 0 (0 %) 1 (5 %) Downside Risk 20.24 18.36 Downside Risk N/A 16.85 • TH L BOGDAHN GROUP. &IOaD NHVQDOJ 58 I (LS)18i (9) TOT OTOZ -18 1N1 Oulpua as ;.Lena 11/6 I9L`b TTOZ /0£/60 ;o sv amen Tail .Lej,\{ I9L`b TTOZ /0£/60 ;o sv anleA ;azl .Lej,Q aau1uuo,Iaad aA iju1duio0 01/6 981 60 /ZI •aa .Ldaa raa .Lddv iumclua 86 •aa .Ldaa /aaaddV iumclua 58Z (5b) Z6 Z (b9) £9'Z OTOZ - unf Oulpua aaT .Lena ageda.Tddd ajeTpatruaguj je;TdeJ sluio.ieg auxoauj paxTJ @SOJ P.reT1IRD 60/£ S0/9 8LZ (06) LO (L£) Z6Z aiuoaui aiuoauj OTOZ - daS Oulpua aaT .Lena L0 /I aau1uuopad aAptInuin3 sasuadxa sasuadxa 096$ 0 0 0 0 0911$ 0 0 l 0 18 0 saaj saaj 019 199 g£ suo!Tngl .LTs!Q suol ;nql .LTs!Q 178 L iiOZ `0£ aaquiaidas 090 (69) 817 0 (tz) ss o TTOZ -18 1A1 OulpuI aaT .Lena £65 (£9)919 (19) L£ 9 (6L) Z L (95) 98 S (OZ) ZZ b (OZ) ZZ b (££) 0£`Z V/N (178) 16 5 (LZ) LS 8 (L I) 98 9 (17Z) 9I b (1 9117 (Ib) £I Z TTOZ - 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smipmT dnoJJ .Jaad 8Z9 OTOZ /TO /OT ;o sv anIen }azlae1N1 6ZI`Z TTOZ /TO /L0 ;o sv anIen alplsg IpaN Iglu • alpls3 I I IIOZ `0£ aaquia ;daS o1, OiOZ `I .ago ;a0 uoi ;ugiauoaaj pq uuuij a1 1sg Ipag I910.L aaJ>'nO I uoiiuiiiauoaag plait-mu 3 Yr Rolling Under /Over Performance - 5 Years 30.0 o. 20.0 10.0 0.0 -10. o -20.0 -20.0 ■ Over Performance -10.0 0.0 10.0 MSCI EAFE Index ( %) ■ Under Performance ® Dec -2006 Peer Group Scattergram - 3 Years 6.00 0.00 z -6.00 • Total International Equity MSCI EAFE Index Total International Equity MSCI EAFE Index 16.00 18.00 20.00 22.00 24.00 26.00 28.00 Risk (Standard Deviation %) Return Standard Deviation • Total International Equity 4.47 34.40 • MSCI EAFE Index -0.66 28.95 Median 0.39 28.00 Tracking Error 7.90 0.00 Tracking Error 8.00 0.00 Winter Springs General Employees General Plan and Trust Total International Equity September 30, 2011 Up Market Capture 116.55 100.00 Up Market Capture 107.52 100.00 20.0 Sep -2011 30.0 Down Market Capture 99.41 100.00 Down Market Capture 104.86 100.00 35 3 Yr Rolling Percentile Ranking - 5 Years 0.00 25.00 50.00 75.00 100.00 • Total International Equ • MSCI EAFE Index Peer Group Scattergram - 5 Years 0.00 -5.00 -10.00 30.00 32.00 34.00 36.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 Risk (Standard Deviation %) Historical Statistics - 3 Years Alpha 6.03 0.00 Historical Statsistics - 5 Years Alpha 0.81 0.00 • • i . • • • • • • • • • • • • el • • • • • • _ _ . ■ ■ ■ ■ • r 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 9/11 ri Information Ratio 0.78 N/A Information Ratio 0.09 N/A Total Period 20 20 5 -25 25- Median Median -75 75 -95 Count Count Count Count 1 (5 %) 2 (10 %) 7 (35 %) 10 (50 %) 0 (0 %) 2 (10 %) 17 (85 %) 1 (5 %) • Total International Equity -3.15 • MSCI EAFE Index -3.00 25.31 Median -1.88 24.30 Sharpe Ratio 0.29 0.09 Sharpe Ratio -0.06 -0.10 Return Standard Deviation 30.43 Beta 1.12 1.00 Beta 1.00 Downside Risk 20.24 18.36 Downside Risk 19.27 16.85 • TH L BOGDAHN GROUP. Financial Reconciliation 1 Quarter RBC Global (Voyageur) RBC Global (Voyageur) • RBC Global (Voyageur) -21.20 (78) • MSCI EAFE Index Median 10.00 5.00 0.00 E -5.00 a -10.00 -15.00 -20.00 -25.00 -30.00 1 Quarter -18.72 RBC Global (Voyageur) MSCI EAFE Index IM International Large Cap Value Equity (SA +CF) Market Value As of 07/01/2011 3,887 Market Value As of 10/01/2010 3,128 Oct -2010 To Sep -2011 -8.61 Winter Springs General Employees General Plan and Trust RBC Global (Voyageur) September 30, 2011 Net Transfers 45 Financial Reconciliation October 1, 2010 To September 30, 2011 Net Transfers 309 -8.61 1 Year 1 Quarter Ending Jun -2011 0.67 (72) 1.83 (42) 1.61 Contributions Contributions 2 Years -1.37 3 Years 0.39 1 Quarter Ending Mar -2011 4.69 (22) 3.45 (54) 3.55 Distributions Distributions Peer Group Analysis - IM International Large Cap Value Equity (SA +CF) 4 Years -7.55 36 5 Years -8.75 (53) -8.75 (53) 0.95 (20) 4.47 (17) N/A N/A -18.95 (55) -8.94 (56) -8.94 (56) -2.82 (63) -0.66 (70) -9.03 (75) -3.00 (70) -1.88 1 Quarter Ending Dec -2010 9.87 (5) 6.65 (55) 6.73 Fees -9 Fees -24 Expenses Expenses $100.0 $90.0 $80.0 $70.0 $60.0 $50.0 $40.0 -4 2/08 1 Quarter Ending Sep -2010 19.39 (8) 16.53 (34) 15.76 9/08 Income 12 Income 12 6/09 1 Quarter Ending Jun -2010 -12.31 (50) -13.75 (80) -12.34 Capital Apprec./ Deprec. -840 Capital Apprec./ Deprec. -326 Market Value As of 09/30/2011 3,093 Market Value As of 09/30/2011 3,093 Cumulative Performance 3/10 12/10 RBC Global (Voyageur) MSCI EAFE Index 9/11 Comparative Performance 1 Quarter Ending Mar -2010 5.07 (3) 0.94 (66) 1.71 THE Ar c. , BOGDAHN GROUP. 3 Yr Rolling Under /Over Performance - 5 Years -8.0 -7.0 -6.0 -5.0 -4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 MSCI EAFE Index ( %) Over Performance O Dec -2006 • Sep -2011 Peer Group Scattergram - 3 Years 6.00 0.00 z -6.00 • RBC Global (Voyageur) MSCI EAFE Index RBC Global (Voyageur) MSCI EAFE Index Risk (Standard Deviation %) Return Standard Deviation • RBC Global (Voyageur) 4.47 34.40 • MSCI EAFE Index -0.66 28.95 Median 0.39 28.00 Tracking Error 7.90 0.00 Tracking Error N/A 0.00 Winter Springs General Employees General Plan and Trust RBC Global (Voyageur) September 30, 2011 Up Market Capture 116.55 100.00 Up Market Capture N/A 100.00 Down Market Capture 99.41 100.00 Down Market Capture N/A 100.00 37 3 Yr Rolling Percentile Ranking - 5 Years 0.00 25.00 50.00 75.00 100.00 • • • • � • • • • • • • • • • • • • L 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 9/11 • RBC Global (Voyageur) • MSCI EAFE Index Peer Group Scattergram - 5 Years 0.00 -5.00 -10.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 34.00 36.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 Historical Statistics - 3 Years Alpha 6.03 0.00 Alpha N/A 0.00 Information Ratio 0.78 N/A Information Ratio N/A N/A Total Period 5 -25 25- Median Count Count 4 1 (25%) 2 (50%) 20 0 (0%) 2 (10%) Risk (Standard Deviation %) Return Standard Deviation • RBC Global (Voyageur) N/A N/A • MSCI EAFE Index -3.00 25.31 Median -1.88 24.30 Sharpe Ratio 0.29 0.09 Historical Statsistics - 5 Years Sharpe Ratio N/A -0.10 Beta 1.12 1.00 Beta N/A 1.00 Median -75 Count 1 (25 %) 17 (85%) 75 -95 Count 0 (0 %) 1 (5 %) Downside Risk 20.24 18.36 Downside Risk N/A 16.85 • TH L BOGDAHN GROUP. Financial Reconciliation 1 Quarter Galliard Core Fixed Income Financial Reconciliation October 1, 2010 To September 30, 2011 Galliard Core Fixed Income Median 12.00 10.00 8.00 6.00 - 4.00 - 2.00 0.00 -2.00 • Galliard Core Fixed Income • Barclays Capital Intermediate Aggregate Market Value As of 07/01/2011 4,569 Market Value As of 10/01/2010 3,995 Peer Group Analysis - IM U.S. Intermediate Duration (SA +CF) 1 Quarter 2.13 (41) 230 (33) 2.01 3.59 Winter Springs General Employees General Plan and Trust Galliard Core Fixed Income September 30, 2011 Net Transfers 94 Net Transfers 579 r"1 1 Year 3.59 Contributions Contributions 2 Years 5.93 3 Years 7.84 Distributions Distributions. Oct -2010 To Sep -2011 4.16 (24) 4.16 (24) 6.86 (17) 8.57 (27) 5.91 (84) N/A 4.22 (20) 4.22 (20) 5.86 (56) 7.12 (79) 6.37 (61) 6.16 (63) 4 Years 6.61 • 5 Years 6.40 Fees Fees $132;0 $128.0 $124.0 $120.0 $116.0 $112.0 $108.0 $104.0 $100.0 $96.0 Expenses Expenses 11/07 6/08 Income Income 3/09 - Galliard Core Fixed Income - Barclays Capital Intermediate Aggregate Capital Apprec./ Deprec. 12/09 98 Capital Apprec./ Deprec. 186 9/10 Market Value As of 09/30/2011 4,761 Market Value As of 09/30/2011 4,761 Cumulative Performance 9/11 Comparative Performance Galliard Core Fixed Income Barclays Capital Intermediate Aggregate IM U.S. Intermediate Duration (SA +CF) 1 Quarter Ending Jun -2011 2.17 (17) 2.17 (17) 2.00 1 Quarter Ending Mar -2011 0.88 (24) 0.48 (69) 0.60 38 1 Quarter Ending Dec -2010 - 1.05 (45) -0.75 (28) - 1.09 1 Quarter Ending Sep -2010 2.92 (37) 2.07 (90) 2.78 1 Quarter Ending Jun -2010 2.63 (64) 2.92 (45) 2.85 1 Quarter Ending Mar -2010 3.01 (6) 1.81 (57) 1.85 THE BOGDAHN GROUP. 3 Yr Rolling Under /Over Performance - 5 Years 9.0 0 8.0 U 6.0 5.0 C7 Peer Group Scattergram - 3 Years 9.00 6.00 a 3.00 ,II 4.5 5.0 5.5 6.0 6.5 7.0 7.5 Barclays Capital Intermediate Aggregate ( %) Under Performance S Dec -2006 ■ Over Performance • • Galliard Core Fixed Income Barclays Capital Intermediate Aggregate Galliard Core Fixed Income Barclays Capital Intermediate Aggregate Risk (Standard Deviation %) Return Standard Deviation • Galliard Core Fixed Income 8.57 3.64 • Barclays Capital Intermediate Aggregate 7.12 2.42 Median 7.84 3.32 Tracking Error 2.31 0.00 Tracking Error N/A 0.00 Winter Springs General Employees General Plan and Trust Galliard Core Fixed Income September 30, 2011 8.0 ® Sep -2011 Up Market Capture 113.41 100.00 Up Market Capture N/A 100.00 8.5 9.0 Down Market Capture 87.96 100.00 Down Market Capture N/A 100.00 39 3 Yr Rolling Percentile Ranking - 5 Years 0.00 25.00 50.00 75.00 100.00 - 7.00 5.60 g 4.20 2.80 Alpha Alpha • • • • • • • • • • • • • ■ ■ ••••• • ••• • Galliard Core Fixed Income • Barclays Capital Intermediate Aggregate 20 Peer Group Scattergram - 5 Years • 1.20 1.60 2.00 2.40 2.80 3.20 3.60 4.00 4.40 4.80 5.20 5.60 6.00 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 Historical Statistics - 3 Years 2.26 0.00 N/A 0.00 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 9/11 Total Period 5 Risk (Standard Deviation %) Return Standard Deviation • Galliard Core Fixed Income N/A N/A • Barclays Capital Intermediate Aggregate 6.16 2.63 Median 6.40 3.44 Information Ratio 0.59 N/A Information Ratio N/A N/A Sharpe Ratio 2.23 2.12 Sharpe Ratio N/A 1.46 5 -25 25- Median Median -75 75 -95 Count Count Count Count 0 (0 %) 3 (60 %) 0 (0 %) 2 (40 %) 0 (0 %) 7 (35 %) 12 (60 %) 1 (5 %) Beta 0.88 1.00 Historical Statsistics - 5 Years Beta N/A 1.00 Downside Risk 2.00 1.45 Downside Risk N/A 1.28 TH L BOGDAHN GROUP. Financial Reconciliation 1 Quarter Galliard TIPS Financial Reconciliation October 1, 2010 To September 30, 2011 Galliard TIPS Median Galliard TIPS Barclays Capital TIPS IMU.S. TIPS (SA +CF) 12.00 10.00 8.00 6.00 4.00 2.00 0.00 • Galliard TIPS • Barclays Capital TIPS Market Value As of 07/01/2011 1,107 Market Value As of 10/01/2010 979 Peer Group Analysis - IM U.S. TIPS (SA +CF) 1 Quarter 1.57 (94) 4.51 (65) Oct -2010 To Sep -2011 6.74 (94) 6.74 (94) 7.01 (95) 5.98 (95) 6.42 (94) N/A 9.87 (36) 9.87 (36) 9.38 (63) 8.13 (67) 7.64 (72) 7.10 (68) 4.73 9.78 9.78 9.56 8.42 Comparative Performance 1 Quarter Ending Jun -2011 2.85 (93) 3.66 (31) 3.58 Net Transfers 12 Net Transfers 95 Winter Springs General Employees General Plan and Trust Galliard TIPS September 30, 2011 Contributions Contributions 1 Quarter Ending Mar -2011 2.23 (30) 2.08 (56) 2.11 1 2 3 Year Years Years Distributions Distributions 4 Years 7.80 1 Quarter Ending Dec -2010 -0.05 (18) -0.65 (37) -0.72 40 Fees -3 Fees -10 5 Years 7.24 Expenses Expenses Cumulative Performance $140.0 $136.0 $132.0 $128.0 $124.0 $120.0 $116.0 $112.0 $108.0 $104.0 $100.0 $96.0 1 Quarter Ending Sep -2010 1.89 (96) 2.48 (72) 2.67 1/07 Income 5 Income 17 Capital Apprec./ Deprec. 12 Capital Apprec./ Deprec. 52 6/08 Galliard TIPS 3/09 1 Quarter Ending Jun -2010 2.21 (94) 3.82 (61) 3.89 12/09 9/10 Barclays Capital TIPS Market Value As of 09/30/2011 1,133 Market Value As of 09/30/2011 1,133 9/11 1 Quarter Ending Mar -2010 0.68 (58) 0.56 (73) 0.71 THE BOGDAHN GROUP. 3 Yr Rolling Under /Over Performance - 5 Years 8.0 6.0 C7 4.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 Barclays Capital TIPS ( %) Under Performance S Dec -2006 Peer Group Scattergram - 3 Years 10.00 e 8.00 CG 6.00 • • Historical Statistics - 3 Years Galliard TIPS Barclays Capital TIPS Galliard TIPS Barclays Capital TIPS 2.80 3.00 3.20 3.40 3.60 3.80 4.00 4.20 4.40 4.60 4.80 5.00 5.20 5.4 Risk (Standard Deviation %) • Galliard TIPS 5.98 • Barclays Capital TIPS 8.13 4.73 Median 8.42 4.25 Tracking Error 3.26 0.00 Tracking Error N/A 0.00 Sep - 2011 Return Winter Springs General Employees General Plan and Trust Galliard TIPS September 30, 2011 Standard Deviation 3.68 Up Market Capture 68.52 100.00 Up Market Capture N/A 100.00 Down Market Capture 62.42 100.00 Down Market Capture N/A 100.00 41 3 Yr Rolling Percentile Ranking - 5 Years 0.00 25.00 50.00 75.00 100.00 • Galliard TIPS • Barclays Capital TIPS 20 Peer Group Scattergram - 5 Years 8.00 7.00 6.00 5.00 Alpha 0.46 0.00 Alpha N/A 0.00 • • • • • • • • • • • • • • • • • • • • • • ■ • • 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 9/11 • 3.80 4.00 4.20 4.40 4.60 4.80 5.00 Risk (Standard Deviation %) Information Ratio -0.67 N/A Information Ratio N/A N/A Total Period 5 5 -25 25- Median Count Count 0 (0 %) 0 (0 %) 0 (0%) 0 (0 %) Return Standard Deviation • Galliard TIPS N/A N/A • Barclays Capital TIPS 7.10 5.40 Median 7.24 5.25 Sharpe Ratio 0.97 0.96 Sharpe Ratio N/A 0.73 5.20 Beta 0.68 1.00 Historical Statsistics - 5 Years Beta N/A 1.00 Median -75 75 -95 Count Count 0 (0 %) 5 (100 %) 14 (70 %) 6(30 %) 5.40 5.60 Downside Risk 4.12 5.61 Downside Risk N/A 4.92 5.80 \ TH L BOGDAHN GROUP. Financial Reconciliation 1 Quarter Total Real Estate Financial Reconciliation October 1, 2010 To September 30, 2011 Total Real Estate • Total Real Estate Median Market Value As of 07/01/2011 2,129 Market Value As of 10/01/2010 628 Total Real Estate NCREIF Fund Index -Open End Diversified Core (EW) IM U.S. Open End Private Real Estate (SA +CF) 20.00 16.00 12.00 a 8.00 E . a 4.00 0.00 -4.00 -8.00 -12.00 N/A Net Transfers Net Transfers 1,300 Winter Springs General Employees General Plan and Trust Total Real Estate September 30, 2011 N/A 1 Quarter Ending Jun -2011 3.51 (85) 4.62 (53) 4.79 Contributions Contributions N/A N/A 1 Quarter Ending Mar -2011 4.39 (56) 4.01 (69) 4.49 Distributions N/A Distributions. -8 -31 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) Oct -2010 1 1 2 3 4 5 To Quarter Sep -2011 Year Years Years Years Years 3.14 (N /A) 15.96 (N /A) 15.96 (N /A) 9.14 (N /A) -6.98 (N /A) -4.18 (N /A) N/A • NCREIF Fund Index -Open End Diversified Core (EW) 3.58 (N /A) 18.34 (N /A) 18.34 (N /A) 12.51 (N /A) -6.38 (N /A) -4.08 (N /A) 0.02 (N /A) 42 N/A Fees -2 Fees -17 N/A 1 Quarter Ending Dec -2010 4.05 (62) 4.99 (31) 4.55 Expenses Expenses $110.0 $105.0 $100.0 $95.0 $90.0 $85.0 $80.0 $75.0 $70.0 $65.0 $60.0 11/07 Income 9 Income 90 Cumulative Performance 6/08 - Total Real Estate 1 Quarter Ending Sep -2010 4.56 (69) 5.45 (53) 5.90 3/09 Capital Apprec./ Deprec. 12/09 58 Capital Apprec./ Deprec. 215 - NCREIF Fund Index -Open End Diversified Core (EW) Comparative Performance 1 Quarter Ending Jun -2010 3.25 (62) 4.32 (30) 3.47 9/10 Market Value As of 09/30/2011 2,185 Market Value As of 09/30/2011 2,185 9/11 1 Quarter Ending Mar -2010 -0.67 (77) 0.75 (44) 0.68 TH L BOGDAHN GROUP. 3 Yr Rolling Under /Over Performance - 5 Years -6.0 -8.0 FC Tj -10.0 -12.0 -4.00 -8.00 -12.00 -12.0 -11.0 -10.0 -9.0 -8.0 -7.0 NCREIF Fund Index -Open End Diversified Core (EW) ( %) Over Performance . Under Performance A Dec -2006 Peer Group Scattergram - 3 Years • • 10.00 12.00 14.00 16.00 Risk (Standard Deviation %) Return Standard Deviation • Total Real Estate -6.98 12.16 • NCREIF Fund Index -Open End Diversified Core (EW) -6.38 13.60 Median N/A N/A Total Real Estate NCREIF Fund Index -Open End Diversified Core (EW) Total Real Estate NCREIF Fund Index -Open End Diversified Core (EW) Winter Springs General Employees General Plan and Trust Total Real Estate September 30, 2011 Tracking Error 3.02 0:00 Tracking Error N/A 0.00 18.00 -6.0 ® Sep -2011 2000 Up Market Capture 80.23 100.00 Up Market Capture N/A 100.00 - 5.0 Down Market Capture 100.00 Down Market Capture 43 3 Yr Rolling Percentile Ranking - 5 Years 93.22 N/A 0.00 25.00 50.00 75.00 100.00 • Total Real Estate 2.00 ▪ o.00 r. - 2.00 -4.00 100.00 0.00 or • • • • • • • `P • w 1 • s a , • , • • 1 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 9/11 • NCREIF Fund Index -Open End Diversified Core (EW) 19 0 (0 %) 10 (53 %) 9 (47 %) 0 (0 %) Peer Group Scattergram - 5 Years • 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 %) Historical Statistics - 3 Years Alpha -1.51 0.00 Alpha N/A Return Standard Deviation • Total Real Estate N/A N/A • NCREIF Fund Index -Open End Diversified Core (EW) 0.02 11.48 Median N/A N/A Information Ratio -0.27 N/A Information Ratio N/A N/A Total Period 5 -25 25- Median Median -75 75 -95 Count Count Count Count 5 0 (0 %) 3 (60 %) 1 (20 %) 0 (0 %) 1 1 e e Sharpe Ratio -0.54 -0.42 Sharpe Ratio N/A Beta 0.87 1.00 Historical Statsistics - 5 Years Beta N/A -0.09 1.00 Downside Risk 11.33 12.31 Downside Risk N/A 9.54 THE /� BOGDAHN GROUP. Financial Reconciliation 1 Quarter American Core Realty Fund Financial Reconciliation October 1, 2010 To September 30, 2011 American Core Realty Fund Median 20.00 16.00 12.00 8.00 4.00 0.00 -4.00 -8.00 • American Core Realty Fund • NCREIF Property Index 1 Quarter 3.19 (N /A) 3.30 (N /A) N/A American Core Realty Fund NCREIF Property Index IM U.S. Open End Private Real Estate (SA +CF) Market Value As of 07/01/2011 678 Market Value As of 10/01/2010 628 N/A Net Transfers Net Transfers N/A Winter Springs General Employees General Plan and Trust American Core Realty Fund September 30, 2011 1 Year 1 Quarter Ending Jun -2011 3.83 (71) 3.94 (70) 4.79 2 Years N/A Contributions Contributions 3 Years N/A 1 Quarter Ending Mar -2011 4.48 (52) 3.36 (91) 4.49 Distributions -8 Distributions 44 N/A -31 Oct -2010 To Sep -2011 16.11 (N /A) 16.11 (N /A) 9.21 (N /A) -6.94 (N /A) -4.15 (N /A) N/A 16.10 (N /A) 16.10 (N /A) 10.85 (N /A) -1.45 (N /A) 0.19 (N /A) 3.40 (N /A) 4 Years N/A 5 Years 1 Quarter Ending Dec -2010 3.71 (75) 4.62 (44) 4.55 Fees -2 Fees -7 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) $110.0 $105.0 $100.0 $95.0 $90.0 $85.0 $80.0 $75.0 $70.0 $65.0 Expenses Expenses Cumulative Performance 11/07 6/08 3/09 12/09 9/10 - American Core Realty Fund - NCREIF Property Index Comparative Performance 1 Quarter Ending Sep -2010 4.56 (69) 3.86 (82) 5.90 Income 9 Income 34 Capital Apprec./ Deprec. 13 Capital Apprec./ Deprec. 65 1 Quarter Ending Jun -2010 3.25 (62) 3.31 (56) 3.47 Market Value As of 09/30/2011 9/11 690 Market Value As of 09/30/2011 690 $100.8 $84.4 1 Quarter Ending Mar -2010 -0.67 (77) 0.76 (43) 0.68 THE BOGDAHN GROUP.. 3 Yr Rolling Under /Over Performance - 5 Years o -2.0 Tt -4.0 FC -6.0 -8.0 0.00 -5.00 -10.00 -15.00 Over Performance A • • Under Performance American Core Realty Fund NCREIF Property Index American Core Realty Fund NCREIF Property Index -10.0 -9.0 -8.0 -7.0 -6.0 -5.0 -4.0 NCREIF Property Index ( %) Under Performance A Dec -2006 0 Sep -2011 Peer Group Scattergram - 3 Years • • 8.00 10.00 12.00 14.00 16.00 Risk (Standard Deviation %) Return Standard Deviation • American Core Realty Fund -6.94 12.18 • NCREIF Property Index -1.45 9.12 Median N/A N/A Tracking Error 4.58 0:00 Tracking Error N/A 0.00 Winter Springs General Employees General Plan and Trust American Core Realty Fund September 30, 2011 Up Market Capture 96.64 100.00 Up Market Capture N/A 100.00 -3.0 -2.0 -1.0 Down Market Capture 157.97 100.00 Down Market Capture N/A 100.00 45 3 Yr Rolling Percentile Ranking - 5 Years FC 25.00 . 0.00 50.00 75.00 FC 100.00 • • • • L • • • • • • 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 9/11 • American Core Realty Fund 5 • NCREIF Property Index 3.00 0.00 -3.00 18.00 20.00 22.00 8.00 10.00 12.00 14.00 Risk (Standard Deviation %) Alpha -4.96 0.00 Alpha N/A 0.00 Information Ratio -1.16 N/A Information Ratio N/A N/A Total Period 19 5 -25 25- Median Median -75 75 -95 Count Count Count Count 0 (0 %) 3 (60 %) 1 (20 %) 0 (0 %) 11 (58 %) 2 (11 %) 6 (32 %) 0 (0 %) Peer Group Scattergram - 5 Years • Return Standard Deviation • American Core Realty Fund N/A N/A • NCREIF Property Index 3.40 7.92 Median N/A N/A Historical Statistics - 3 Years Sharpe Ratio -0.54 -0.13 Sharpe Ratio N/A 0.26 Beta 1.27 1.00 Historical Statsistics - 5 Years Beta N/A 1.00 16.00 18.00 Downside Risk 11.33 7.41 Downside Risk N/A 5.74 TH L BOGDAHN GROUP. 46 fi�tr BOGDAHN GROUP. Intercontinental Intercontinental • Intercontinental Median Market Value As of 07/01/2011 1,450 Market Value As of 10/01/2010 Intercontinental NCREIF Fund Index -Open End Diversified Core (EW) IM U.S. Open End Private Real Estate (SA +CF) 20.00 16.00 12.00 8.00 4.00 0.00 -4.00 -8.00 N/A Net Tra nsfers Net Tra nsfers 1,300 1 Quarter Winter Springs General Employees General Plan and Trust Intercontinental September 30, 2011 Financial Reconciliation 1 Quarter Financial Reconciliation October 1, 2010 To September 30, 2011 • • Oct -2010 To Sep -2011 N/A 1 Quarter Ending Jun -2011 3.36 (87) 4.62 (53) 4.79 Contributions Contributions N/A 1 Year • N/A 1 Quarter Ending Mar -2011 4.35 (58) 4.01 (69) 4.49 Distributions Distributions • N/A 47 N/A Fees Fees -10 Peer Group Analysis - IM U.S. Open End Private Real Estate (SA +CF) 2 3 4 5 Years Years Years Years 3.12 (N /A) 16.24 (N /A) 16.24 (N /A) N/A N/A N/A N/A • NCREIF Fund Index -Open End Diversified Core (EW) 3.58 (N /A) 18.34 (N /A) 18.34 (N /A) 12.51 (N /A) -6.38 (N /A) -4.08 (N /A) 0.02 (N /A) N/A 1 Quarter Ending Dec -2010 4.51 (53) 4.99 (31) 4.55 Expenses Expenses Cumulative Performance $123.0 $120.0 $117.0 Si 14.0 • $108.0 • $105.0 $102.0 $99.0 11/10 1 Quarter Ending Sep -2010 N/A 5.45 (53) 5.90 Income Income 56 - Intercontinental 12/10 3/11 Capital Apprec./ Deprec. 45 Capital Apprec./ Deprec. 150 6/11 - NCREIF Fund Index -Open End Diversified Core (EW) 1 Quarter Ending Jun -2010 N/A 4.32 (30) 3.47 Market Value As of 09/30/2011 1,496 Market Value As of 09/30/2011 9/11 1,496 Comparative Performance 1 Quarter Ending Mar -2010 N/A 0.75 (44) 0.68 TH L BOGDAHN GROUP. Total Fund Policy Allocation Mandate Weight ( %) Jan -1976 S &P 500 Barclays Capital Aggregate MSCI EAFE Index Oct -2003 S &P 500 Barclays Capital Aggregate MSCI EAFE Index Sep -2006 S &P 500 Barclays Capital Intermediate Aggregate Oct -2009 Russell 3000 Index Barclays Capital Intermediate Aggregate MSCI EAFE Index Barclays Capital U.S. Treasury: U.S. TIPS NCREIF Property Index Oct -2010 Russell 3000 Index Barclays Capital Intermediate Aggregate MSCI EAFE Index Barclays Capital U.S. Treasury: U.S. TIPS NCREIF Fund Index -Open End Diversified Core (EW) Winter Springs General Employees General Plan and Trust Benchmark History As of September 30,2011 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 48 Total Equity Policy Allocation Mandate Weight ( %) Jan-1970 S &P 500 MSCI EAFE Index Oct -2003 S &P 500 MSCI EAFE Index Sep -2006 S &P 500 Oct -2009 Russell 3000 Index MSCI EAFE Index Total Domestic Equity Policy Total Fixed Policy 90.00 10.00 85.00 15.00 100.00 77.00 23.00 Allocation Mandate Weight ( %) Jan-1926 S &P 500 Oct -2009 Russell 3000 Index 100.00 100.00 Allocation Mandate Weight ( %) Nov -2000 Barclays Capital Aggregate Sep -2006 Barclays Capital Intermediate Aggregate 100.00 100.00 THE BOGDAHN GROUP. Winter Springs General Employees General Plan and Trust As of September 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. 49 THE ,IT T I E 0 -- GROUP. 50 fi�tr BOGDAHN GROUP. Return Statistics Standard Deviation Sharpe Ratio Alpha Beta R- Squared Treynor Ratio Downside Risk Tracking Error Information Ratio Consistency Excess Return Active Return Excess Risk Up Market Capture Down Market Capture Description Compounded rate of return for the period. 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. 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. 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. 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. 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. 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. 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. A measure of the standard deviation of a portfolio's performance relative to the performance of an appropriate market benchmark. 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. 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. Arithmetic difference between the managers return and the risk -free return over a specified time period. Arithmetic difference between the managers return and the benchmark return over a specified time period. A measure of the standard deviation of a portfolio's performance relative to the risk free return. The ratio of average portfolio return over the benchmark during periods of positive benchmark return. better product performance. The ratio of average portfolio return over the benchmark during periods of negative benchmark return. better product performance. Higher values indicate Lower values indicate Calculation based on monthly periodicity. Statistics Definitions 51 THE BOGDAHN GROUP City of Winter Springs General Employee Retirement System Compliance Checklist as of September 30, 2011 Total Fund Compliance: Yes No N/A 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. Equity Compliance: Yes No N/A 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. 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. Manager Compliance: Lateef Yes No N/A Dalton Yes No N/A RBC Global Yes No N/A Gaillard Yes No N/A TIPS Yes No N/A 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. 52 ✓ ✓ ✓ ✓ 5. Less than four consecutive quarters of under performance relative to the benchmark. ✓ ✓ ✓ ✓ ✓ 6. Three year down - market capture ratio less than the index. ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ City of Winter Springs General Employee Retirement System Compliance Checklist as of September 30, 2011 Manager Compliance: American P+ Yes No N/A Intercon. R+ Yes No N/A Yes No N/A Yes No N/A Yes No N/A 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. 53 Chicago Cleveland 4320 Winfield Road, Suite 200 Warrcnville, Illinois 60555 15770 Dallas Parkway, Suite 250 Da]las, Texas 75248 THE BOGDAHN GROUP. nvestment and frduriary decisions 866.240.7932 Orlando 4901 Vineland Road, Suite 601 Orlando, Florida 32811 6133 Rockside Road Rocksidc Square 11, Suite 303 Independence, Ohio 44131 Dallas Milwaukee 250 E. Wisconsin Ave, Suite 1800 Milwaukee, Wisconsin 53202