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04/18/2011 PENSION TRUSTEES AGENDA Location: Council Chambers - City Hall Date: 4/18/2011- 9:00 AM 1. Call to Order 2. Approval of Minutes 2.1Approve the minutes of the March 15, 2011 Pension Trustees meeting as submitted in written summation by the City Clerk. Attachments 3. Pension Trustee Items 3.1Approve new hires for acceptance in the Pension Plan as listed. Attachments 3.2Approve the request of employee Elizabeth Garrett, Parks & Recreation Department, for a regular pension as provided by Sections 2.397 and 2.398 of the Employees’ Pension Plan. Attachments 3.3Review of the Employees’ Pension Plan investment performance for the year ended December 31, 2010. Attachments 3.4Approve the recommended administrative expenditures budget for Fiscal Year 2011-12, totaling $335,500. Attachments 4. Other Business 5. Adjourn Meeting Date:4/18/2011 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the minutes of the March 15, 2011 Pension Trustees meeting as submitted in written summation by the City Clerk. SUMMARY: Review Approval: Cover Memo Item # 1 Attachment number 1 Page 1 of 3 Item # 1 Attachment number 1 Page 2 of 3 Item # 1 Attachment number 1 Page 3 of 3 Item # 1 Meeting Date:4/18/2011 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve new hires for acceptance in the Pension Plan as listed. SUMMARY: Pension Name, Job. Class, & Dept./Div. Hire Date Elig. Date David Pritchett, SCBA Maintenance Tech./Fire 2/14/11 2/14/11 Christopher Perrin, SWEquip. Oper./Solid Waste/Gen'l Ser. 2/14/11 2/14/11 Ricky Taylor, WWTP Operator Trainee/Public Utilities 2/14/11 2/14/11 Jean Louis, Sr. Systems Programmer/Information Tech. 2/14/11 2/14/11 Norton McGiffin, Parking Enforcement Specialist/Eng. 7/17/10 2/14/11 * Julianne Maran, Parking Enforcement Specialist/Eng. 2/14/11 2/14/11 Richard Chapman, Network Analyst/Information Tech. 1/31/11 1/31/11 Amelia Adams, Accounting Clerk/Finance 1/31/11 1/31/11 *originally hired as part-time on 7/17/10; status changed to full-time and pension eligible as of 2/14/11 Review Approval: Cover Memo Item # 2 4/18/2011 Meeting Date: Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the request of employee Elizabeth Garrett, Parks & Recreation Department, for a regular pension as provided by Sections 2.397 and 2.398 of the Employees’ Pension Plan. SUMMARY: , was employed by the City on September 24, 1976, and Elizabeth Garrett, Recreation Leader, II, Parks & Recreation Department her pension service credit is effective on July 2, 1991. Her pension will be effective July 1, 2011. Based on an average salary of approximately $37,765 per year over the past five years, the formula for computing regular pensions, and Ms. Garrett’s selection of the Joint & Survivor Annuity, this pension will approximate $20,771 annually. Section 2.397 provides for normal retirement eligibility when a participant has completed thirty years of credited service, has reached age 55 and completed twenty years of credited service, or has reached age 65 and completed ten years of credited service. Ms. Garrett qualifies under the age 65 and ten years of service criteria. Review Approval: Cover Memo Item # 3 Attachment number 1 Page 1 of 5 Item # 3 Attachment number 1 Page 2 of 5 Item # 3 Attachment number 1 Page 3 of 5 Item # 3 Attachment number 1 Page 4 of 5 Item # 3 Attachment number 1 Page 5 of 5 Item # 3 Meeting Date:4/18/2011 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Review of the Employees’ Pension Plan investment performance for the year ended December 31, 2010. SUMMARY: This is the annual presentation on the investment performance of the Employees’ Pension Plan for calendar and plan year ending December 31, 2010. For the last calendar year, the plan had a return of 17.73% versus a benchmark of 13.96%. This is an excess return of 3.77% over the benchmark and an excess return of 5.53% over the median public pension plan, placing the plan in the rd 3 percentile of public pension plans per the Wilshire Public Plan Sponsor Universe. For the last three calendar years, the plan has a return of 3.79% versus a benchmark of 1.24%. This is an excess return th of 2.55% and placed the plan in the top 9percentile of pension plan performance for public plans. Calendar year 2010 money manager changes included the hiring of Multi Employer Property Trust (MEPT) as a private real estate manager. Also, Riverbridge Partners was hired to replace Lee Munder Capital Group as a small cap equity manager, which terminates the investment vehicle we were utilizing. All of the current managers in the pension plan have performed as expected. Only one manager, Wellington Management, an international equity manager, failed to beat its benchmark and underperformed the midpoint of its peer group. The financial industry has changed dramatically over the past decade. The pension plan has adapted and changed accordingly. The average length of service of our current managers is just over five years. The plan has utilized the services of one manager, ING, for over twenty-three years. All of the other managers have been with the plan less than ten years, with most less than five years. The recently completed asset allocation study is being implemented. The two timber managers have been hired and the plan is awaiting the funding notices. The hedge fund of funds search is underway and should be presented to the Trustees sometime this summer. 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Review Approval: Cover Memo Item # 4 Attachment number 2 Page 1 of 200 CC ITY OF LEARWATER EPP MPLOYEES ENSION LAN PR ERFORMANCE EVIEW D31,2010 ECEMBER Eric W. Bailey, CFA John J. Griffith, JD, CPC Managing PrincipalSenior Investment Consultant Item # 4 102 W. Whiting Street, Suite 400, Tampa, FL 33602-5140 Tel: 813/218-5000 www.captrustadv.com Attachment number 2 Page 2 of 200 Item # 4 Attachment number 2 Page 3 of 200 TC ABLE OF ONTENTS Capital Markets Review 1 Fund Overview 2 Performance Review Total Fund 3 Domestic Equity 4 International Equity 5 Fixed Income 6 Real Estate 7 Appendix 8 Item # 4 Attachment number 2 Page 4 of 200 Item # 4 Attachment number 2 Page 5 of 200 City of Clearwater Employees Pension Fund Important Disclaimer Information This report has been created as a courtesy for the clients of Ca The information contained herein was taken from sources believednty is made as to its accuracy or completeness. Performance Comparison Page Information: Shaded areas represent where the investment objective was achi 1) The investment return versus the index; 2) The investment return universe ranking (The lower t Due to methodologies utilized by our systems, the performance resented beginning on the last day of an account's inception month. Results do notption date to an account's first month-end. For example, for an accou begins measuring performance as of March 31. Omission of perfor in different performance figures than if the interim period's perfo Any investment results depicted represent historical net of fees Past performance is no guarantee of future performance. This report is not the official record of your account. However planning and is for information purposes only. Your Custodial C Therefore, if there are any discrepancies between this report anent Statement and call your Financial Advisors if you have any questtion should be reviewed carefully with your accountant or tax tax advisor. This 1099 form. Cost data and acquisition dates provided by you are Advisors. Indices are unmanaged and you cannot invest directly in an index For index definitions, please see the Capital Markets Review. Item # 4 1 Attachment number 2 Page 6 of 200 Item # 4 2 Attachment number 2 Page 7 of 200 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 IndexQTRYTD1 Yr3 Yr5 Yr10 Yr Domestic Fixed Income 3 Month T-Bill0.04%0.14%0.14%0.60%2.31%2.27% Barclays Capital 1-3 year Gov't-0.13%2.40%2.40%3.47%4.32%4.07% Barclays Capital Interm Gov't-1.55%4.98%4.98%4.94%5.41%5.11% Barclays Capital Interm Credit-1.22%7.76%7.76%6.70%6.03%6.22% Barclays Capital Interm Govt/Cred-1.44%5.89%5.89%5.40%5.53%5.51% Barclays Capital Aggregate Bond-1.30%6.54%6.54%5.90%5.80%5.84% Domestic Equity Standard & Poor's 50010.76%15.06%15.06%-2.86%2.29%1.41% Dow Jones Industrial Average8.04%14.06%14.06%-1.61%4.31%3.15% Dow Jones US Total Full Cap11.74%17.70%17.70%-1.56%3.17%2.64% Dow Jones US Select REIT 7.45%28.07%28.07%0.01%2.32%10.42% Russell 1000 - Large Cap11.19%16.10%16.10%-2.37%2.59%1.83% Russell 1000 Growth - Large Cap11.83%16.71%16.71%-0.47%3.75%0.02% Russell 1000 Value - Large Cap10.54%15.51%15.51%-4.42%1.28%3.26% Russell Midcap13.07%25.48%25.48%1.05%4.66%6.54% Russell Midcap Growth14.01%26.38%26.38%0.97%4.88%3.12% Russell Midcap Value12.24%24.75%24.75%1.01%4.08%8.07% Russell 2000 - Small Cap16.25%26.86%26.86%2.22%4.47%6.33% Russell 2000 Growth - Small Cap17.11%29.09%29.09%2.18%5.30%3.78% Russell 2000 Value - Small Cap15.36%24.50%24.50%2.19%3.52%8.42% International Equity MSCI EAFE6.61%7.75%7.75%-7.02%2.46%3.50% MSCI World8.95%11.76%11.76%-4.85%2.43%2.31% MSCI EM 7.05%16.36%16.36%-2.59%10.26%13.18% Blended Benchmarks 30% S&P 500 / 70% Barclays Agg2.32%9.10%9.10%3.27%4.75%4.51% 40% S&P 500 / 60% Barclays Agg3.52%9.95%9.95%2.40%4.40%4.07% 50% S&P 500 / 50% Barclays Agg4.73%10.80%10.80%1.52%4.05%3.63% 60% S&P 500 / 40% Barclays Agg5.94%11.65%11.65%0.64%3.69%3.18% 70% S&P 500 / 30% Barclays Agg7.14%12.50%12.50%-0.23%3.34%2.74% This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. Item # 4 Data Sources: Zephyr StyleAdvisor, Barclay’s Capital, MSCI BarraPoor’s Data provided by sources believed to be reliable but no guarantets accuracy. Past performance is no guarantee of future performance. 3 Attachment number 2 Page 8 of 200 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 This market review was written by the Institutional Consulting Group at Wells Fargo Advisors and provided to you courtesy of CapTrust Financial Advisors. Capital Markets Summary Despite mixed economic and market data throughout the quarter the domestic markets finished the year with a strong performance in the fourth quarter. The S&P 500 Index (up 10.76%), NasdaqComposite Index (NASDAQ) (up 12.43%), S&P 400 Mid-cap Index (up 13.50%), and S&P 600 Small-cap Index (up 16.24%) all finished the quarter with double-digit returns. Only the Dow Jones Industrial Average (DJIA) (up 8.04%) posted a single-digit return for the quarter. Volume remains low across all exchanges and trading platforms. Investor and consumer confidence is improving, but the job market is still weak and expected to remain so well into 2011. The markets received a jump start early in the quarter when it was announced that the Fed was set to execute another round of quantitative easing, labeled QE2. This announcement coupled with the release of a better than expected September ISM Services Index number (54.4) propelled the S&P 500 to a one day gain of 2.1% on October 5th. Over-weighting of this information by investors and the discounting of a poor employment report from ADP later in the week seemed to set the tone for the quarter. Employment numbers were mixed and largely impacted by the loss of census workers and gain of seasonal retail employees . There was also an abundance of positive commentary regarding corporate infrastructure spending, manufacturing output, servicesector activity, and small business owner confidence –a three-year high, to support market advances. Initial Public Offerings (IPOs) brought to market drew interest from investors, and set records again this quarter led by a $20.5B offering from AIA Group, Inc. and a$20.1B offering from General Motors. Earnings season provided few surprises. In addition to the accustomed earnings target overachievers, Thomson Reuters' data indicated that 60% of reporting companies beat analyst’s top-line forecasts. The overall earnings growth rate for the S&P 500 Index was 31% year-over-year, and nine out of ten sectors are up over the same period last year. The markets also benefited from several industry leaders’, now flush with cash, announcement of dividend increases. Retailers received good news as early reports indicated holiday spending could increase by 6 –8% from last year’s levels. This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. Item # 4 Data Sources: Zephyr StyleAdvisor, Barclay’s Capital, MSCI BarraPoor’s Data provided by sources believed to be reliable but no guarantets accuracy. Past performance is no guarantee of future performance. 4 Attachment number 2 Page 9 of 200 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 Capital Markets Summary In international markets, emerging market economies led by a rally in commodity prices Risk/Return Comparison Five Years Ending December 31, 2010 continued to outperform the developed market 14 economies. In addition to demand, the rise in 12 commodity prices was also attributed to investors’ 10 willingness to accept the risk/return rewards 8 offered by commodities. Latin America showed 6 strong performance led by a surge in Argentina’s 4 Mervalindex. Germany’s market, as measured by 2 the DAX, led Europe’s developed economies, 0 followed by the United Kingdom (FTSE), and 051015202530 France (CAC). Manufacturing activity in Europe is Risk (Standard Deviation %) expanding at a slow but steady pace. Unemployment is still hovering around 10%. In Asian markets, inflation remains a concern for China, and therefore, its Asian trading partners. Some investors had expected that rate increases would slow the rapidly expanding economy. However, China’s manufacturing output continued to increase through November until finally showing signs of a slowdown in December. Speculation about how China would manage this concern drove the CSI index down 7.19% in November (-12.27 YTD), but despite raising interest rates this quarter (China), Asian markets moved higher. China’s CSI 300 Index advanced 6.56%, and Hong Kong’s Ha quarter. In domestic fixed income markets the Treasury announced plans for QE2. To help jump start the economy, the Treasury plans to purchase up to $600 billion of long-term Treasuries, and reinvest an additional $250 -$300 billion in Treasuries with the proceeds of its earlier investments. Some economists, and Kansas City Fed President Thomas Hoenig, disagree with this strategy’s planned success. Treasury yields bottomed early in the quarter and thenmoved steadily higher. The sudden spike in rates caused some corporate issuers, like Allegheny Generating, to reconsider the timing of their debt offering. Europe continued to struggle with debt issues. After much negotiation, Ireland was offered and finally accepted debt relief. Attention has now turned to Portugal and Spain as they consider their options. Italy is being watched closely, and Belgium is also on the radarscreen. While battling inflationary issues on the home front, China, anxious to reaffirm its desire to be recognized as a global leader affirmed its long-term investment commitment to the European markets, and expressed its confidence, specifically in the Spanish financial markets, with a pledge to continue to purchase European debt. Japan’s central bank cut its key interest rate to zero, and like the U.S., intends to begin a debt and other asset-backed securities repurchase program designed to stimulate its economy. This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. Item # 4 Data Sources: Zephyr StyleAdvisor, Barclay’s Capital, MSCI BarraPoor’s Data provided by sources believed to be reliable but no guarantets accuracy. Past performance is no guarantee of future performance. 5 Attachment number 2 Page 10 of 200 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 Domestic Equity Broad Domestic Equity Performance As 2010 drew to a close, the U.S. equity market enjoyed an impressive quarter as 30.00% strong corporate earnings and tax-relief 25.00% extensions outweighed continued weakness in 20.00% employment and home sales. Most major 15.00% Large Cap domestic indices posted double-digit returns Mid Cap 10.00% in the fourth quarter and all major domestic Small Cap indices were up double-digits for calendar 5.00% year 2010. A tepid start to 2010 left the S&P 0.00% 500 down 4.62% heading into September, but -5.00% a 20.64% gain over the final four months of 4Q101 year3 years5 years10 years the year saw the index reach a 15.06% return for the year. By late December, the index Style Performance had recouped all its losses since the 10 Year Growth of $100 September 2008 collapse of Lehman 300 Brothers. 250 200 In U.S. mergers and acquisitions, activity 150 increased 14.2% in 2010 as consolidation 100 continued in the energy and health care 50 industry. The biggest deal of the fourth quarter came on the final day of 2010 as 0 CVS Caremark (CVS) announced it had acquired the Medicare Part D business of R1000 ValueR1000 GrowthR2000 ValueR2000 Growth Universal American (UAM) for $1.25 billion. At the time CVS’s existing Part D program served 1.2 million Medicare recipients, while Universal American’s program served 1.9 million recipients. In another announcement shortly after quarter end, Duke Energy (DUK) said it would acquire Progress Energy (PGN) inan all-stock deal valued at just over $13 billion. In IPOs, the previously mentioned General Motors IPO in mid-November raised $20.1 billion in the largest IPO in U.S. history. Small cap stocks greatly outperformed large caps as the Russell 2000 beat the Russell 1000 by over 5% in the quarter and greater than 10% (26.86% vs. 16.10%) for the year. The quarter and year also saw growth stocks slightly outperform value stocks across all capitalization levels. This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. Item # 4 Data Sources: Zephyr StyleAdvisor, Barclay’s Capital, MSCI BarraPoor’s Data provided by sources believed to be reliable but no guarantets accuracy. Past performance is no guarantee of future performance. 6 Attachment number 2 Page 11 of 200 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 Domestic Equity Domestic Equity All the 10 major sectors enjoyed gains for both Quarterly Return the quarter and the year. Energy was the ValueGrowth strongest sector of the quarter as it posted returns greater than 5% in each of the final three months 10.5411.1911.83 to reach a 21.48% return for the quarter. Consumer Discretionary (up 27.66%) and 12.2413.0714.01 Industrials (up 26.73%) were the big gainers for the year, but Materials and Energy also enjoyed 15.3616.2517.11 gains of greater than 20% in 2010. Health Care and Utilities lagged in the quarter and were also the only two sectors to report single digit gains in 2010 (up 2.90% and 5.46% for the year). -10-50510 This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. Item # 4 Data Sources: Zephyr StyleAdvisor, Barclay’s Capital, MSCI BarraPoor’s Data provided by sources believed to be reliable but no guarantets accuracy. Past performance is no guarantee of future performance. 7 Attachment number 2 Page 12 of 200 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 International Markets The international markets this quarter lagged domestic markets by a few percentage points. Early index returns show the EAFE (GR) up 6.65% for the quarter with other international indices slightly higher. The continuing spread of the European debt crisis alongwith monetary tightening in China has kept foreign markets from moving higher. In a story that has been unfolding for over a year now, Ireland has followed Greece in accepting a bailout to finance its debt. Prior to the bailout investors were demanding 9.2% returns on Irish bonds. The high rates were a factor for Ireland agreeing to a deal being funded by the Euro zone, the larger European Union and the IMF. These three sources are providing over 67.5 billion in Euros. Financing is also coming from other sources including England that has more financial ties with its neighbor. The average loan rate of 5.8% is higher than the package offeredto Greece 5.2% interest. Economist speculate the higher rate was an attempt to get Ireland back into the private debt market sooner than if they were given a lower rate comparable to Greece. The bailout was accompanied with an announced plan and broader powers for bailing out future financially distressed members of the EU. The plan or the bailout of Ireland did not do much in settling European markets as Portugal, Spain and Italy all had their debt prices sink the following week. With Ireland shored up the next domino likely to fall is Portugal. One Year International (Gross) Returns As Of December 31, 2010 4.8% China 6.8% Brazil 8.8% United Kingdom 9.3% Germany 14.7% Australia 15.6% Japan 19.4% Russia 21.0% India 27.6% Mexico 34.2% South Africa This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. Item # 4 Data Sources: Zephyr StyleAdvisor, Barclay’s Capital, MSCI BarraPoor’s Data provided by sources believed to be reliable but no guarantets accuracy. Past performance is no guarantee of future performance. 8 Attachment number 2 Page 13 of 200 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 International Markets Portuguese bond prices fell with Spain and Italy in December. Portugal’s debt was downgraded by Fitch at the end of the year to A+ from AA-. Fitch rating agency warned that further downgrades may be coming. While Portugal has problems the big elephant in the room is Spain. Spain’s economy is twice the size of Greece, Ireland and Portugal combined. The consensus is that a bailout for Spain would cost more than the EU and the IMF currently has available.There have been calls recently to increase the size of the European Union’s Bailout fund. A bailout of Spain would require financially stable countries like Germany and France to tap their debt market to finance their share of any possible agreement. Paying for what they see as other countries excessesis already a sore spot and it will be even harder to swallow if it requires taking on debt to accomplish it. Economists and pundits will be watching how the Euro zone fares in 2011 and waiting to see if there will be an end in sight for the crisis. The other factor keeping a lid on rising equity prices is the monetary tightening in China to control inflation and cool perceived bubbles, especially in real estate.China increased its one year lending rate by 25 basis points twice in the quarter. The first occurred in October and the second was over the Christmas holiday to bring the rate to 5.81%. Economist believethe rate moves will do little in cooling down the economy which grew 9.6% in the quarter and created inflation breaching 5% in November. China also increased the minimum required reserve by .5% in December, the sixth such increase in 2010. These broad moves were preceded by moves aimed at cooling the real estate market. The moves included a pilot for a property tax as well as increasing down payment minimums to 30% and suspending lending for third homes. How far China tightens will obviously depend on growth and inflation numbers as we move into 2011. Fixed Income U.S. Treasury yields moved higher during the quarter. The benchmark 10-year Treasury was yielding 2.51% in October, rising to 3.29% to close the quarter. Treasury securities were one of the worst performing fixed income sectors for the quarter, yet still posted strong gains for the year. Agency performed somewhat better than Treasuries for the quarter, although yields still rose. Agency yield spreads are presently below long term averages, and yields are only slightly above comparable treasury maturities. This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. Item # 4 Data Sources: Zephyr StyleAdvisor, Barclay’s Capital, MSCI BarraPoor’s Data provided by sources believed to be reliable but no guarantets accuracy. Past performance is no guarantee of future performance. 9 Attachment number 2 Page 14 of 200 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 Fixed Income Corporate bonds followed Treasury yields higher in the fourth quarter. However, this year’s refinance boom, fueled by low rates, led to respectable annual gains. The positive outlook for U.S. economic growth, along with declining credit risk, allowed corporate spreads to tighten further. U.S. companies sold approximately 844 billion investment grade debt this year, and they are sitting on a record cash hoard of roughly $1.17 trillion. The high yield sector was the big performer of the quarter with a return of 3.21% according to the Barclays Capital U.S. Corporate High Yield index. The Barclays Capital U.S. Aggregate Bond index was down 1.29% on the quarter with monthly returns of 0.36%, -0.57%, and -1.08%. The Barclays Capital U.S. Government Intermediate index was down 1.55% for the quarter with monthly returns of 0.37%, - 0.58%, and -1.34%. Finally, the Barclays Capital U.S. Corporate Investment Grade index fell 1.60% for the quarter with monthly returns of 0.12%, -0.81%, and -0.92%. Improving economic conditions led to a volatile fourth quarter in fixed income markets. Most fixed income categories suffered as long term rates moved higher. As investors removed money from the bond market to seek out riskier assets, bond funds saw outflows for the first time in two years. The Federal Reserve initiated additional quantitative easing in the fourth quarter. The Fed purchases are targeting the belly of the curve (2-10 year maturities), which they hope will support an economic recovery, and aid corporate refinancing for capital purchases. Rising prices should not be a concern for the Fed as it was reported in mid-November that inflation, less food and energy, was now the lowest since 1957. This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. Item # 4 Data Sources: Zephyr StyleAdvisor, Barclay’s Capital, MSCI BarraPoor’s Data provided by sources believed to be reliable but no guarantets accuracy. Past performance is no guarantee of future performance. 10 Attachment number 2 Page 15 of 200 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 Commodities A weakened dollar and strong manufacturing data from China attributed to the continued advance of commodities this quarter. Oil traded in a narrow range most of the year, but rallied after several inventory reports showed declines in reserves, and analysts projected a higher demand for crude and refined petroleum in 2011. The February futures closed slightly above $91 per barrel, and a 12% gain in the fourth quarter pushed oil to a 27 month high, finishing the year up 16%. Metals also gained during the quarter. Silver was up better than41% closing the quarter at $30.83, up 83.24% for the year. Gold, often considered a safe haven by investors, continued to draw interest from non-traditional investing realms. The metal reached an intra-day high above $1,432 an ounce on December 7, before closing the quarter at $1,421. Gold was up 8.69% for the quarter, and 29.58% for the year. Currency Mixed economic reports from around the globe kept the major currencies in a state of flux. Ahead of the October G20 meeting in Seoul, Treasury Secretary Tim Geithnerrequested other member nations to “refrain from exchange rate policies designed to achieve competitive advantage by either weakening their currency or preventing appreciation of undervalued currency”. Although intended for China, this request was considered disingenuous by other members(and many emerging market countries) as the U.S. Dollar continued to slide to an eight-month low against a basket of currencies. The U.S. Dollar as measured against the Dollar Index was down 1.85% in October, up 5.22% in November, finishing the quarter up just 0.39%. Supportive commentary by the Federal Reserve and continued economic weakness in Europe contributed to the dollar’s late quarter strength. 1 Year Country And Currency Returns As of December 31, 2010 19.8% 14.7% 12.0% 21.2% -4.6% 2.4% 17.6% 15.6% 4.4% 8.8% This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. Item # 4 Data Sources: Zephyr StyleAdvisor, Barclay’s Capital, MSCI BarraPoor’s Data provided by sources believed to be reliable but no guarantets accuracy. Past performance is no guarantee of future performance. 11 Attachment number 2 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 Page 16 of 200 CAPITAL MARKET INDEX RETURNS 1991199219931994199519961997199819992000200120022003200420052006 Russell Russell Russell DJ Russell Russell Russell DJ Russell BarclayRussell DJ DJ DJ Russell BarclayRussell Russell MSCI MSCI 200020001000Wilshire 100010002000Wilshire 2000Agg2000Wilshire Wilshire Wilshire 1000Agg10 BEST EAFEEAFE ValueValueValueREITValueGrowthGrowthREITValueBondGrowthREITREITREITGrowthBondGrowthGrowth 41.70%29.15%32.94%8.06%38.35%37.04%35.18%38.71%43.09%31.04%13.96%10.27%48.53%33.14%14.00%36.13%11.81%5.24%37.21%29.09% Russell DJ Russell Russell Russell Russell Russell DJ DJ Russell Russell Russell Russell DJ S&P S&P S&P MSCI MSCI MSCI 1000Wilshire 20001000100010002000Wilshire Wilshire 2000200020002re 500500500EAFEEAFEEAFE GrowthREITValueGrowthGrowthGrowthValueREITREITValueValueValueGrowthREIT 41.16%15.13%23.84%2.66%37.53%23.12%33.35%28.57%33.16%22.83%12.36%3.60%46.02%22.25%13.54%26.34%11.17%-28.92%34.47%28.07% DJ Russell Russell DJ Russell Russell BarclayBarclayRussell Russell Russell Russell Russell Russell S&P MSCI MSCI MSCI MSCI MSCI Wilshire 10001000Wilshire 10002000AggAgg200010002000200010002000 500EAFEEAFEEAFEEAFEEAFE REITValueValueREITGrowthValueBondBondValueValueValueGrowthValueValue 23.84%13.81%18.12%2.66%37.19%22.94%31.78%20.33%27.30%11.63%8.44%-11.42%39.16%20.25%7.05%23.48%7.05%-36.85%31.78%24.50% Russell Russell DJ Russell Russell Russell Russell Russell Russell Russell DJ Russell Russell Russell BarclayDJ Russell S&P S&P S&P 20002000Wilshire 2000100010001000100010001000Wilshire 100010001000AggWilshire 1000 500500500 GrowthGrowthREITGrowthValueGrowthValueValueValueValueREITValueGrowthValueBondREITGrowth 21.18%7.77%15.14%1.31%31.04%21.64%30.49%15.63%21.04%7.01%-5.59%-15.52%36.06%16.49%5.26%22.25%6.97%-37.00%28.46%16.71% Russell Russell Russell Russell DJ BarclayRussell Russell Russell Russell Russell Russell S&P S&P S&P MSCI S&P S&P S&P S&P 2000200020002000Wilshire Agg100020001000200010001000 500500500EAFE500500500500 GrowthValueValueValueREITBondValueGrowthValueGrowthGrowthValue 30.48%7.62%13.37%-1.55%25.75%21.37%19.67%8.67%7.35%-9.10%-9.22%-15.94%30.03%14.31%4.91%15.79%5.49%-38.44%26.46%15.51% Russell BarclayRussell BarclayRussell Russell Russell DJ Russell Russell Russell Russell Russell Russell S&P MSCI S&P S&P S&P S&P 1000Agg1000Agg200020002000Wilshire 100020002000100020002000 500EAFE500500500500 ValueBondValueBondGrowthGrowthGrowthREITGrowthValueGrowthValueGrowthValue 24.61%7.40%10.06%-1.99%18.48%11.26%12.95%1.23%-2.57%-13.96%-11.88%-22.09%29.76%10.87%4.71%13.35%-0.17%-38.54%20.58%15.06% BarclayRussell BarclayRussell DJ BarclayRussell BarclayRussell Russell Russell Russell Russell Russell Russell DJ Russell MSCI S&P MSCI Agg1000Agg2000Wilshire Agg2000Agg1000100010001000200010002000Wil1000 EAFE500EAFE BondGrowthBondGrowthREITBondValueBondGrowthGrowthGrowthGrowthGrowthGrowthValueREITValue 16.00%5.00%9.75%-2.44%12.24%6.36%9.68%-6.46%-0.83%-22.42%-20.42%%28.67%6.30%4.15%9.07%-9.78%-39.20%19.69%7.75% Russell BarclayBarclayDJ Russell Russell Russell BarclayBarclayBarclayBarclayDJ BarclayBarclay MSCI MSCI MSCI MSCI MSCI MSCI 1000AggAggWilshire 200020002000AggAggAggAggWilshire AggAgg EAFEEAFEEAFEEAFEEAFEEAFE GrowthBondBondREITValueGrowthGrowthBondBondBondBondREITBondBond WORST 12.49%-11.85%2.90%-2.92%11.55%3.61%2.06%-17.00%-1.49%-22.43%-22.00%-30.27%4.11%4.34%2.43%4.33%-17.56%-45.09%5.93%6.54% contains those Russell 1000 (larger capitalization) securities with a less-than-average growth orientation. Russell 1000 Value Securities in this index generally have lower price-to-book and vidend yields, and lower forecasted growth rates. contains those Russell 1000 (larger capitalization) securities with a greater-than-average growth Russell 1000 Growth orientation. Securities in this index generally have higher price-to-book and price-to-earnings ratios, lower dividend yields, and higher forecasted growth rates. contains those Russell 2000 (smaller capitalization) securities with a less-than-average growth Russell 2000 Value orientation. Securities in this index generally have lower price-to-book and price-to-earnings ratios than those in the Russell 2000 Growth Index. contains those Russell 2000 (smaller capitalization) securities with a greater-than-average growth Russell 2000 Growth orientation. Securities in this index generally have higher price-to-book and price-to-earnings ratios than those in the Russell 2000 Value Index. is the Morgan Stanley Capital International Europe, Australia, Far East Index designed to measure MSCI EAFE performance of developed stock markets in these areas. is the Lehman Brothers Aggregate Bond Index. This index includes U.S. government, corporate and Barclays AggBond mortgage-backed securities rated investment grade or higher with is a representative sample of 500 leading companies in leading industries of the U.S. economy. S&P 500 is intended as a broad measure of the performance of publicly traded real estate equity. The index is DJ Wilshire REIT comprised of companies whose charter is the equity ownership andoperation of commercial real estate. This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. Item # 4 Data Sources: Morningstar Data provided by sources believed to be reliable but no guarantets accuracy. Past performance is no guarantee of future performance. 12 Attachment number 2 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 Page 17 of 200 RELATIVE PERFORMANCE OF KEY INDICES 60 Equity Outperforming Equity vs. Fixed Asian Crisis 40 Black Monday -Oct '87 20 0 -20 -40 Aug '82 –DJIA 776 Invasion of Iraq Fixed Outperforming -60 Equity vs. FixedMean1 Standard Deviation2 Standard Deviations 60 Domestic Outperforming Domestic vs. Foreign 40 20 0 -20 -40 Foreign Outperforming -60 Domestic vs. ForeignMean1 Standard Deviation2 Standard Deviations This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. Item # 4 Data Sources: Morningstar Data provided by sources believed to be reliable but no guarantets accuracy. Past performance is no guarantee of future performance. 13 Attachment number 2 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 Page 18 of 200 RELATIVE PERFORMANCE OF KEY INDICES 60 Large vs. Small Large Outperforming 40 20 0 -20 -40 Small Outperforming -60 Large vs. SmallMean1 Standard Deviation2 Standard Deviations 60 Value Outperforming Large Value vs. Large Growth 40 20 0 -20 -40 Growth Outperforming -60 Large Value vs. Large GrowthMean1 Std Deviation2 Std Deviations This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. Item # 4 Data Sources: Morningstar Data provided by sources believed to be reliable but no guarantets accuracy. Past performance is no guarantee of future performance. 14 Attachment number 2 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 Page 19 of 200 RELATIVE PERFORMANCE OF KEY INDICES 60 Small Value vs. Small Growth Value Outperforming 40 20 0 -20 -40 Growth Outperforming -60 Small Value vs. Small GrowthMean1 Standard Deviation2 Standard Deviations 80 Equity Outperforming Equity vs. REIT 60 40 20 0 -20 -40 -60 REIT Outperforming -80 Equity vs. REITMean1 Standard Deviation2 Standard Deviations This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. Item # 4 Data Sources: Morningstar Data provided by sources believed to be reliable but no guarantets accuracy. Past performance is no guarantee of future performance. 15 Attachment number 2 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 Page 20 of 200 RELATIVE PERFORMANCE OF KEY INDICES 120 Fixed Income Outperforming Fixed Income vs. REIT 80 40 0 -40 -80 REIT Outperforming -120 Fixed Income vs. REITMean1 Standard Deviation2 Standard Deviations This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. Item # 4 Data Sources: Morningstar Data provided by sources believed to be reliable but no guarantets accuracy. Past performance is no guarantee of future performance. 16 Attachment number 2 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 Page 21 of 200 GENERAL DISCLOSURE STATEMENT Wells Fargo Advisors is the trade name used by two separate, registered broker/dealers and nonbank affiliates of FIRM: Wells Fargo & Company, providing certain retail securities brokerage services: Wells Fargo Advisors, LLC., member FINRA, SIPC, and Wells Fargo Financial Network, LLC, member FINRA, SIPC. Investments in securities and products are: NOT FDIC-INSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE. To review important information about certain relationships and potential conflicts of CONFLICTS OF INTEREST: interest that may exist between Wells Fargo Advisors , its affilmpanies that are mentioned inthis report, please visit the our research disclosure page at www.wellsfargoadvisors.com/gotoresearchdisclosuresor call your Financial Advisor. : This and/or the accompanying information was prepared by or obs STATEMENT OF OPINION which Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Any opinions expressed or implied herein are not necessarily the same as those of Wells Fargo Advisors or its affiliates and are subject to change without notice. The report herein is not a complete analysis ofevery material fact in respect to any company, industry or security. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request. Stocks of small companies are typically more volatile than stocks of larger companies. ASSET CLASS SUITABILITY: They often involve higher risks because they may lack the management expertise, financial resources, product diversification and competitive strengths to endure adverse economic conditions. High-yield, non-investment grade bonds are only suitable for aggressive investors willing to take great risks, which could result in loss of principal and interest payments. Global/International investing involves risks not typically associated with US investing, including currency fluctuations, political instability, uncertain economic conditions and different accounting standards. Past performance is not an indication of future results. PAST PERFORMANCE: Long Term Treasuries = BC Treasury Long; Municipals = ASSET CLASS PERFORMANCE REPRESENTATIONS: BC Municipal; Foreign Bonds = Salomon World BIG –IB; US Govt/Credit = BC Govt/Credit; MtgeBacked Securities = ML Mortgage Master; Corporate Bonds = Salomon Corporate; 90 Day T-Bills = Salomon; Japanese Stocks = Salomon Japan BMI; High Yield Bonds = ML High Yield Master; Small Cap USValue = RU 2000 Value; MidCapUS Stocks = RU Midcap; Large Cap US Value = RU 1000 Value; European Stocks =Salomon Europe BMI; Small Cap US Stocks = RU 2000; LgCap US Growth = RU 1000 Growth; Latin American Stocks = SalomonLatin America BMI; SmCap US Growth = RU 2000 Growth : Large-Cap = S&P 500 or BROAD EQUITY MARKET & SECTOR PERFORMANCE REPRESENTATIONS Russell 1000; Mid-Cap = RU Midcap; Small-Cap = RU 2000; Internat Information found in this document was derived from the following sources: Zephyr Associates DATA SOURCES: StyleAdvisor, InformaM-Watch, Investor Force, Barclays Capital, MSCI Barra, and Standard & Poor’s. Item # 4 This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. 17 Attachment number 2 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 Page 22 of 200 GENERAL DISCLOSURE STATEMENT -This index is comprised of 30 "blue-chip" US stocks selected for their history of Dow Jones Industrial Average successful growth and wide interest among investors. The DJIA represents about 20% of the total market value of all US stocks and about 25% of the NYSE market capitalization. It is aprice-weighted arithmetic average, with the divisor adjusted to reflect stock splits and the occasional stock switches in the index. -A cap-weighted index comprised of all common stocks that are listed onthe NASDAQ Stock NASDAQ Composite Market (National Association of Securities Dealers Automated Quoon system). -A broad-based measurement of changes in stock market conditions based onthe average performance of 500 S&P 500 widely held common stocks. This index does not contain the 500 largest companies nor the most expensive stocks traded in the U.S. While many of the stocks are among the largest, thisindex also includes many relatively small companies. This index consists of approximately 380 industrial, 40 utility, 10 transportation and 70 financial companies listed on U.S. market exchanges. It is a capitalization-weighted index (stock price times number of shares outstanding),calculated on a total return basis with dividends reinvested. -The S&P/Citigroup Growth tracks the performance of those stocksin the S&P 500 with S&P 500/Citigroup Growth lower book-to-price ratios. A cap-weighted index, it is rebalanced semi-annually, based on its price-to-book ratios and market capitalizations at the close of trading one month prior. The index is adjusted each month to reflect changes in the S&P 500. This index is more heavily weighted in the consumer non-cyclical, health care, and technology sectors than the S&P 500. -The S&P Citigroup/Value tracks the performance of those stocks in the S&P 500 with higher S&P 500/Citigroup Value book-to-price ratios. A cap-weighted index, it is rebalanced semi-annually on January 1 and July 1, based on its book-to- price ratios and market capitalizations at the close of trading one month prior. The index is adjusted each month to reflect changes in the S&P 500. This index tends to be more heavily concentrated in the energy and financial sectors than the S&P 500. -The 1000 largest companies in the Russell 3000 index, based on ation. Russell 1000 -A segment of the Russell 1000 with a greater-than-average growth orientation. Companies in this Russell 1000 Growth index have higher price-to-book and price-earnings ratios, lower dividend yields and higher forecasted growth values than the Russell 1000 Value index. -Represents a segment of the Russell 1000 with a less-than-average growth orientation. Companies Russell 1000 Value in this index have low price-to-book and price-earnings ratios, higher dividend yields and lower forecasted growth values than the Russell 1000 Growth Index. -The index consisting of the bottom 800 securities in the Russell 1000 as ranked by total market Russell Mid Cap capitalization, and it represents over 35% of the Russell 1000 total market cap. -The 2000 smallest companies in the Russell 3000 index. Russell 2000 -A segment of the Russell 2000 with a greater-than-average growth orientation. Companies in this Russell 2000 Growth index have higher price-to-book and price-earnings ratios, lower dividend yields and higher forecasted growth values than the Russell 2000 Value index. -A segment of the Russell 2000 with a less-than-average growth orientation. Companies in this index Russell 2000 Value have low price-to-book and price-earnings ratios, higher dividend yields and lower forecasted growth values than the Russell 2000 Growth index. -The index consisting of the bottom 500 stocks in the Russell 1000(as ranked by market capitalization) and Russell 2500 all of the stocks in the Russell 2000. This index is intended tobe used as a measure of small to medium/small stock performance, and it represents over 22% of the Russell 3000 total market cap. Item # 4 This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. 18 Attachment number 2 CAPITAL MARKETS REVIEW –DECEMBER 31, 2010 Page 23 of 200 GENERAL DISCLOSURE STATEMENT -A market capitalization-weighted index representing all of the MSCI developed markets outside Nor MSCI EAFE America. It comprises 20 of the 22 countries in the MSCI World. These 20 countries include the 14 European countries in the MSCI Europe and the 6 Pacific countries in the MSCI Pacific.This index is created by aggregating the 20 different country indexes, all if which are created separately. -This market capitalization-weighted index represents all 22 of the MSCI developed markets in the world. MSCI World It is created by aggregating the 22 different country indexes, all if which are created separately. -A market capitalization-weighted index representing 26 of the emerging MSCI Emerging Markets Free (EMF) markets in the world. Several factors are used to designate whether a country is considered to be emerging vs. developed, the most common of which is Gross Domestic Product Per Capita. The "Free" aspect indicates that this index includes only securities that are allowed to be purchased by global investors. This index is created by aggregating the 26 different country indexes, all if which are created separately. -This index includes all bonds that are in the Barclays Capital Government Bond Barclays Capital Government/Credit and the Barclays Capital Credit Bond indices. -All bonds covered by the Barclays Capital Government Bond indexwith Barclays Capital Government Intermediate maturities of 1 and 10 years. -This index is made up of the Barclays Capital Government/Credit, the Mortgage- Barclays Capital Aggregate Bond Backed Securities, and the Asset-Backed Securities indices. All issues in the index are rated investment grade or higher, have at least one year to maturity, and have an outstanding par value of at least $100 million. -All bonds covered by the Barclays Capital Government Bond indexwith Barclays Capital Government Long Term maturities of 10 years or greater. -This market cap weighted index includes investment grade tax-ex Barclays Capital Municipal Bond classified into four main sectors: General Obligation, Revenue, Insured, and Pre-refunded. To be included in this index, the original transaction size of a bond must have been greater than $50 million. -The convertible securities used in this index span all corporatmust have a par Merrill Lynch Convertibles amount outstanding of $25 million or more. The maturity must be at least one year. The coupon range must be equal to or greater than zero and all quality of bonds are included. Excludeare preferred equity redemption stocks. When the component bonds of this index convert into common stock, the converted securities are dropped from the index. -Market-cap weighted index providing a broad-based measure of bonds in the US Merrill Lynch High Yield Master domestic bond market rated below investment grade but not in defes with a credit rating of BB1 or below as rated by Moody’s and/or S&P, at least $100 million in f remaining term to final maturity equal to or greater than one year. -A measurement of equity REITs and Real Estate Operating CompaniNo special- Dow Jones Wilshire REIT Index purpose or health care REITs are included. It is a market capitalization-weighted index for which returns are calculated monthly using buy and hold methodology; it is rebalanced monthly. -Representing the monthly return equivalents of yield averages that are not marked to Citigroup 3 Month Treasury Bill market, this index is an average of the last three three-month Tsues. –A blended benchmark consisting of 50% S&P 500 and 50% Barclays Capital 50/50 Blend (S&P 500/BCIGC) Government/Credit Intermediate indices. Item # 4 This and/or the accompanying information was prepared by or obtah Wells Fargo Advisors believes to be reliable but does not guarantee its accuracy. Please see important disclosure and reference information at theonclusion of this report. Past performance is not indicative of future results. 19 Attachment number 2 Page 24 of 200 Item # 4 20 Attachment number 2 Page 25 of 200 City of Clearwater Asset Allocation vs Target & Policy Total Fund As of 12/31/10 Market ManagerValueActual %Policy % ING Investment Mgmt89,481,396.2413.50 Aletheia Research30,335,955.094.58 NTGI-QM R1000V42,840,068.906.46 Artisan Partners40,885,652.466.17 Wedge Capital Mgmt40,943,328.546.18 Atlanta Capital Mgmt11,513,746.871.74 Systematic Financial Mgt11,415,579.161.72 Riverbridge Partners19,641,532.482.96 Total Domestic Equity287,057,259.7443.3042.00 Dodge & Cox105,689,606.3215.94 Western Asset Management Co.81,482,273.5012.29 Security Lending Income Account137,548.280.02 In House Account4,973,933.800.75 Total Domestic Fixed Income192,283,361.9029.0030.00 Earnest Partners29,711,160.274.48 Wentworth & Violich31,374,115.124.73 Eaton Vance Mgmt30,980,328.824.67 Wellington Mgmt28,784,020.364.34 Total International Equity120,849,624.5718.2318.00 Multi Employer Property Trust20,943,622.373.16 Security Capital41,879,496.736.32 Total Real Estate62,823,119.109.4810.00 Total Fund663,013,365.31100.00 Item # 4 21 Attachment number 2 Page 26 of 200 City of Clearwater Sources of Fund Growth Total Fund 9/30/10 - 12/31/10 BeginningNetInvestInvestEnding Manager NameValueContribFeesGain/LossValue ING Investment Mgmt80,620,585008,860,81289,481,396 Aletheia Research24,914,4612,000,00003,421,49530,335,955 NTGI-QM R1000V38,754,649004,085,42042,840,069 Artisan Partners35,809,677005,075,97640,885,652 Wedge Capital Mgmt36,139,977004,803,35240,943,329 -2,431-2,778 LMCG SmallCap Selected G5,20900 Atlanta Capital Mgmt10,038,451001,475,29611,513,747 Systematic Financial Mgt9,614,267001,801,31211,415,579 Riverbridge Partners16,876,305002,765,22819,641,532 Domestic Equity Comp252,773,5801,997,569032,286,111287,057,260 Dodge & Cox105,548,26300141,343105,689,606 Western Asset Management Co.82,378,40700-896,13481,482,274 Security Lending Income Account37,416101,0070-875137,548 0 In House Account2,244,6632,729,27104,973,934 Fixed Income Comp190,208,7492,830,2780-755,666192,283,362 -5881,853,698 Earnest Partners27,858,050029,711,160 Wentworth & Violich27,338,561-92104,036,47531,374,115 Eaton Vance Mgmt28,791,544002,188,78530,980,329 -1 Wellington Mgmt26,804,12301,979,89828,784,020 International EQ Comp110,792,278-1,509010,058,856120,849,625 20,000,000 Multi Employer Property Trust00943,62220,943,622 Security Capital60,711,992-22,000,00003,167,50541,879,497 Real Estate Comp60,711,992-2,000,00004,111,12762,823,119 Total Fund614,486,5982,826,338045,700,429663,013,366 Item # 4 22 Attachment number 2 Page 27 of 200 City of Clearwater Executive Summary Table Periods Ending December 31, 2010 Net of Fee Return ValuePeriods Ending 12/31/10Since Inception Name$(000)Cur Qtr1 Year3 Yrs5 Yrs7 Yrs10 Yrs15 YrsRetDate Total Fund663,0137.4217.733.796.026.674.967.459.3912/31/87 Policy Index 6.2013.961.245.246.815.827.739.5512/31/87 Domestic Equity Comp287,05712.6822.530.264.075.903.427.7810.8312/31/87 S&P 500 10.7615.05-2.862.303.851.416.779.7812/31/87 Large Cap Equity Comp162,65711.2016.87-1.932.534.592.056.979.92 3/31/88 R1000 11.2016.10-2.382.594.321.827.009.79 3/31/88 Aletheia Research30,33612.7516.98-0.32-1.97 6/30/07 R1000V 10.5415.51-4.42-5.50 6/30/07 ING Investment Mgmt89,48110.9917.10-0.884.086.051.858.4011.0912/31/87 R1000G 11.8416.72-0.473.764.340.025.739.1412/31/87 NTGI-QM R1000V42,84010.5415.75-4.19-5.27 6/30/07 R1000V 10.5415.51-4.42-5.50 6/30/07 Mid Cap Equity Comp81,82913.7328.032.706.097.505.539.0312.30 3/31/88 R Mid Cap 13.0825.491.054.667.896.549.8211.56 3/31/88 Artisan Partners40,88614.1733.154.819.3310.408.26 7/31/01 R Mid Cap G 14.0126.390.974.887.355.62 7/31/01 Wedge Capital Mgmt40,94313.2923.303.602.07 2/28/07 R Mid Cap V 12.2424.761.01-0.53 2/28/07 Small Cap Equity Comp42,57116.5329.271.935.136.877.83 8/31/03 R2000 16.2526.852.224.476.367.77 8/31/03 Atlanta Capital Mgmt11,51414.7025.988.759.8310.7311.08 8/31/03 R2000V 15.3624.512.193.526.187.93 8/31/03 Riverbridge Partners19,64216.3916.39 9/30/10 R2000G 17.1117.11 9/30/10 Systematic Financial Mgt11,41618.7435.502.935.386.648.03 8/31/03 R2000V 15.3624.512.193.526.187.93 8/31/03 International EQ Comp120,8509.0818.37-0.906.639.066.87 5/31/01 MSCI EAFE 6.658.21-6.552.946.855.36 5/31/01 Earnest Partners29,7116.6516.610.93 4/30/08 MSCI EAFE 6.658.21-5.99 4/30/08 Eaton Vance Mgmt30,9807.6023.332.41 4/30/08 MSCI Emg Mkts 7.3619.191.38 4/30/08 Wellington Mgmt28,7847.3915.995.08 3/31/08 MSCI Emg Mkts 7.3619.194.26 3/31/08 Wentworth & Violich31,37414.7717.58-1.75 4/30/08 MSCI EAFE 6.658.21-5.99 4/30/08 Fixed Income Comp192,283-0.397.377.356.615.645.685.927.0012/31/87 BC Agg -1.306.545.915.805.105.846.047.3412/31/87 Item # 4 23 Attachment number 2 Page 28 of 200 City of Clearwater Executive Summary Table Periods Ending December 31, 2010 Net of Fee Return ValuePeriods Ending 12/31/10Since Inception Name$(000)Cur Qtr1 Year3 Yrs5 Yrs7 Yrs10 Yrs15 YrsRetDate Dodge & Cox105,6900.137.537.686.825.68 2/29/04 BC Agg -1.306.545.915.804.94 2/29/04 In House Account4,9740.000.000.000.000.000.000.000.8012/31/87 3-month T-Bill 0.040.130.692.302.252.253.254.0912/31/87 Security Lending Income Account138-1.6721.7013.5610.057.737.28 6/30/03 3-month T-Bill 0.040.130.692.302.252.16 6/30/03 Western Asset Management Co.81,482-1.097.096.736.275.62 9/30/04 BC Agg -1.306.545.915.805.17 9/30/04 Real Estate Comp62,8236.9930.51-3.08 4/30/08 Wilshire RESI Index 8.1829.12-2.84 4/30/08 Multi Employer Property Trust20,9444.724.72 9/30/10 NCREIF ODCE 4.994.99 9/30/10 Security Capital41,8797.8931.62-2.78 4/30/08 Wilshire RESI 8.1829.12-2.84 4/30/08 Item # 4 24 Attachment number 2 Page 29 of 200 City of Clearwater Executive Summary Table December 31, 2010 Net of Fee Return ValueCalendar Years Name$(000)201020092008200720062005 Total Fund663,01317.7330.28-27.107.2011.766.71 Policy Index 13.9626.00-27.736.6916.598.25 Domestic Equity Comp287,05722.5332.14-37.767.1813.018.12 S&P 500 15.0526.45-36.995.5215.814.89 Large Cap Equity Comp162,65716.8724.59-35.237.7611.528.63 R1000 16.1028.42-37.605.7715.466.27 Aletheia Research30,33616.9836.50-37.97 R1000V 15.5119.69-36.85 ING Investment Mgmt89,48117.1024.43-33.1817.107.1412.02 R1000G 16.7237.21-38.4311.829.095.27 NTGI-QM R1000V42,84015.7520.35-36.86 R1000V 15.5119.69-36.85 Mid Cap Equity Comp81,82928.0345.33-41.7910.2612.537.85 R Mid Cap 25.4940.47-41.465.5915.2712.65 Artisan Partners40,88633.1551.38-42.8722.3110.9410.19 R Mid Cap G 26.3946.30-44.3211.4110.6412.10 Wedge Capital Mgmt40,94323.3038.51-34.89 R Mid Cap V 24.7634.20-38.45 Small Cap Equity Comp42,57129.2733.51-38.633.2717.407.21 R2000 26.8527.19-33.80-1.5518.354.56 Atlanta Capital Mgmt11,51425.9826.83-19.526.9116.226.23 R2000V 24.5120.57-28.92-9.7723.484.70 Riverbridge Partners19,642 R2000G Systematic Financial Mgt11,41635.5035.72-40.710.4918.618.27 R2000V 24.5120.57-28.92-9.7723.484.70 International EQ Comp120,85018.3757.93-47.9411.0227.6213.15 MSCI EAFE 8.2132.46-43.0611.6326.8514.01 Earnest Partners29,71116.6155.54 MSCI EAFE 8.2132.46 Eaton Vance Mgmt30,98023.3367.01 MSCI Emg Mkts 19.1979.02 Wellington Mgmt28,78415.9974.44 MSCI Emg Mkts 19.1979.02 Wentworth & Violich31,37417.5855.98 MSCI EAFE 8.2132.46 Fixed Income Comp192,2837.3712.372.545.945.052.59 BC Agg 6.545.935.246.964.332.43 Item # 4 25 Attachment number 2 Page 30 of 200 City of Clearwater Executive Summary Table December 31, 2010 Net of Fee Return ValueCalendar Years Name$(000)201020092008200720062005 Dodge & Cox105,6907.5314.531.375.475.622.40 BC Agg 6.545.935.246.964.332.43 In House Account4,9740.000.000.000.000.000.00 3-month T-Bill 0.130.161.804.744.763.01 Security Lending Income Account13821.7017.482.435.104.873.09 3-month T-Bill 0.130.161.804.744.763.01 Western Asset Management Co.81,4827.099.243.926.514.662.77 BC Agg 6.545.935.246.964.332.43 Real Estate Comp62,82330.5124.68 Wilshire RESI Index 29.1229.20 Multi Employer Property Trust20,944 NCREIF ODCE Security Capital41,87931.6224.68 Wilshire RESI 29.1229.20 Item # 4 26 Attachment number 2 Page 31 of 200 City of Clearwater Cumulative Performance Comparison Total Returns of Total Fund Public Sponsors Periods Ending 12/10 26% 24% T 22% 20% 1 18% T 16% 14% 1 12% 10% 1 8% T T 1 1 T 6% 1T T T 1 1 1 T T 4% T 1 2% 1 0% -2% -4% LastLastLast 2Last 3Last 4Last 5Last 6Last 7Last 8Last 9Last 10 QtrYearYearsYearsYearsYearsYearsYearsYearsYearsYears High8.1216.2321.314.135.165.996.227.008.787.116.52 1st Qt6.7713.6716.983.004.095.225.416.097.766.225.56 4.965.527.115.474.90 Median5.7512.2015.321.743.034.63 3rd Qt4.4010.9812.820.301.924.134.325.046.484.964.26 Low3.389.339.87-2.290.372.743.344.145.024.123.12 Total Fund T Net Ret7.4217.7323.853.794.636.026.146.678.216.184.96 79132747 Rank10319134 Policy Index 1 Net Ret6.2013.9619.831.242.585.245.736.818.936.895.82 1474819 Rank39208595722 Item # 4 27 Attachment number 2 Page 32 of 200 City of Clearwater Calendar Year Performance Comparison Total Returns of Total Fund Public Sponsors Years Ending December 35% 30% T 25% 1 1 20% T T 1 15% 1 1 T 10% T 1 T 1T 5% 0% 1 -5% T 1 T -10% -15% -20% -25% T 1 -30% -35% 2010200920082007200620052004200320022001 High16.2327.37-9.7110.7716.3210.3413.9226.041.584.40 1st Qt13.6721.60-20.138.6914.058.1111.7922.56-5.83-0.68 9.8919.72-8.21-2.68 Median12.2019.11-24.047.5212.086.52 3rd Qt10.9815.60-27.156.3310.285.338.4017.04-9.76-4.76 Low9.339.23-30.384.366.633.915.7011.34-12.76-8.99 Total Fund T Net Ret17.7330.28-27.107.2011.766.719.9019.63-8.74-5.35 49516081 Rank3374585445 Policy Index 1 Net Ret13.9626.00-27.736.6916.598.2513.4825.03-8.11-3.38 7104959 Rank2078066423 Item # 4 28 Attachment number 2 Page 33 of 200 City of Clearwater Performance Summary Total Fund December 31, 2010 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 QtrYTD1 Year3 Year5 YearIncept 12/31/87 Total FundPolicy Index Cur QtrYTD1 Year3 Yrs5 YrsInceptIncept DateCur Assets Total Fund7.4217.7717.773.806.039.3912/31/87$663,013,366 Policy Index 6.2013.9613.961.245.24 9.55 Rank103394 ING Investment Mgmt17.1017.10-0.884.0811.0912/31/87$89,481,396 10.99 R1000G 11.8416.7216.72-0.473.769.14 Rank6337374133 Aletheia Research12.7516.9816.98-0.32-1.97 6/30/07$30,335,955 R1000V 10.5415.5115.51-4.42-5.50 8202014 Rank NTGI-QM R1000V10.5415.7515.75-4.19-5.27 6/30/07$42,840,069 15.5115.51-4.42-5.50 R1000V 10.54 Rank43292971 14.1733.1533.154.819.338.26 7/31/01$40,885,652 Artisan Partners R Mid Cap G 14.0126.3926.390.974.88 Rank4888187 Wedge Capital Mgmt13.2923.3023.303.602.07 2/28/07$40,943,329 R Mid Cap V 12.2424.7624.761.01 37 Rank705858 Atlanta Capital Mgmt14.7025.9825.988.759.8311.08 8/31/03$11,513,747 24.5124.512.193.52 R2000V 15.36 Rank68656551 Item # 4 29 Attachment number 2 Page 34 of 200 City of Clearwater Performance Summary Total Fund December 31, 2010 Cur QtrYTD1 Year3 Yrs5 YrsInceptIncept DateCur Assets Systematic Financial Mgt18.7435.5035.502.935.388.03 8/31/03$11,415,579 R2000V 15.3624.5124.512.193.52 Rank16116354 Riverbridge Partners 9/30/10$19,641,532 16.3916.39 R2000G 17.11 Rank51 Earnest Partners6.6516.6116.610.93 4/30/08$29,711,160 MSCI EAFE 6.658.218.21 2727 Rank64 Wentworth & Violich14.7717.5817.58-1.75 4/30/08$31,374,115 6.658.218.21 MSCI EAFE Rank22323 7.6024.1024.102.65 4/30/08 Eaton Vance Mgmt$30,980,329 MSCI Emg Mkts 7.3619.1919.19 Rank282525 Wellington Mgmt7.3915.9915.995.08 3/31/08$28,784,020 MSCI Emg Mkts 7.3619.1919.194.26 318787 Rank Dodge & Cox0.137.537.537.686.825.68 2/29/04$105,689,606 -1.306.546.545.915.80 BC Agg Rank2643431819 -1.097.097.096.736.275.62 9/30/04 Western Asset Management Co.$81,482,274 BC Agg -1.306.546.545.915.805.17 Rank6549493240 Security Lending Income Account-1.6724.9124.9114.5510.627.65 6/30/03$137,548 3-month T-Bill 0.040.130.130.692.302.16 In House Account0.000.000.000.000.000.8012/31/87$4,973,934 3-month T-Bill 0.040.130.130.692.304.09 Item # 4 30 Attachment number 2 Page 35 of 200 City of Clearwater Performance Summary Total Fund December 31, 2010 Cur QtrYTD1 Year3 Yrs5 YrsInceptIncept DateCur Assets Multi Employer Property Trust4.724.72 9/30/10$20,943,622 NCREIF ODCE 4.994.99 Rank5454 Security Capital31.6231.62-2.78 4/30/08 7.89$41,879,497 Wilshire RESI 8.1829.1229.12 Rank1311 Item # 4 31 Attachment number 2 Page 36 of 200 Item # 4 32 Attachment number 2 Page 37 of 200 City of Clearwater Domestic Equity Comp as of 12/31/10 Portfolio Performance (%) 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 -4.0 QtrYTD1 Year3 Year5 Year10 YearIncept 12/31/87 Domestic Equity CompS&P 500 Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year12/31/87 Domestic Equity Comp12.6822.5322.530.264.073.4210.83 S&P 500 10.7615.0515.05-2.862.301.419.78 Asset Growth ($000) Beginning Market Value252,774239,449239,449298,670301,381303,35932,236 Net Contributions & Withdrawals1,998-5,133-5,133-5,133-5,133-5,133-5,133 Gain/Loss + Income32,28652,74152,741-6,480-9,191-11,169259,954 Ending Market Value287,057287,057287,057287,057287,057287,057287,057 Top Equity HoldingsGICS Sector Allocation GICS Sector% Port% Port Apple Computer Inc Information Technology2.15Energy7.62 Exxon Mobil Corp Energy2.15Materials6.46 Microsoft Corp Information Technology1.39Industrials16.51 Google Inc Information Technology1.27Consumer Discretionary14.54 Cisco Sys Inc Information Technology1.14Consumer Staples6.23 Oracle Systems Corp Information Technology1.13Health Care10.42 Qualcomm Inc Information Technology1.09Financials11.66 Roper Inds Inc New Industrials1.08Information Technology23.94 Borg-Warner AutomotiConsumer Discretionary1.05Telecom Services0.32 Philip Morris Intl IConsumer Staples1.04Utilities2.30 Item # 4 Holdings and allocations only include SMA accounts. 33 Attachment number 2 Page 38 of 200 City of Clearwater Domestic Equity Comp as of 12/31/10 Asset Allocation ($000) Cash & Equiv $6,905 2.41% Domestic Equity $280,152 97.59% Risk/Return Analysis Periods from 12/87 to 12/10 Alpha0.18 Beta1.09 R-Squared0.93 11.0 E 10.5 10.0 1 9.5 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 T 4.0 0.02.04.06.08.010.012.014.016.018.020.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Domestic Equity Comp 10.83 17.98 0.37 0.24 E S&P 500 9.78 15.97 0.35 1 91-Day Treasury Bill 4.24 1.15 0.00 T Item # 4 Holdings and allocations only include SMA accounts. 34 Attachment number 2 Page 39 of 200 City of Clearwater Cumulative Performance Comparison Total Returns of Equity Portfolios Periods Ending 12/10 45% 40% 35% 30% E 25% E 20% 1 15% 1 E 10% 1 E 1 5%E E E E 1 E 1 1 1 E 1 0% E 1 1 -5% -10% LastLastLast 2Last 3Last 4Last 5Last 6Last 7Last 8Last 9Last 10 QtrYearYearsYearsYearsYearsYearsYearsYearsYearsYears High18.6032.0440.287.978.009.639.6311.0414.6011.4611.94 1st Qt14.0725.0929.632.643.845.826.548.0111.708.267.31 4.395.798.945.653.93 Median11.4117.0924.04-0.851.153.62 3rd Qt9.7614.1120.52-2.88-0.792.322.984.247.033.411.69 Low1.896.3812.86-5.99-3.61-0.031.422.565.472.420.17 Domestic Equity Comp E Net Ret12.6822.5327.240.261.944.074.735.909.035.163.42 4448485456 Rank363235414244 S&P 500 1 Net Ret10.7615.0520.61-2.86-0.832.302.723.856.673.011.41 8485848583 Rank596773747776 Item # 4 35 Attachment number 2 Page 40 of 200 City of Clearwater Calendar Year Performance Comparison Total Returns of Equity Portfolios Years Ending December 70% 60% 50% 40% E 30%E 1 1 E 20% 1 1 E E 10% 1 E E 1 1 0% -10% E 1 -20% E 1 -30% 1 E -40% -50% -60% 2010200920082007200620052004200320022001 High32.0454.50-15.8822.1623.1616.0425.3858.79-3.4619.83 1st Qt25.0936.65-33.4410.1817.5210.4918.1339.38-14.463.14 13.0231.40-20.85-8.39 Median17.0928.69-37.015.4114.596.90 3rd Qt14.1124.08-41.100.289.994.569.9727.52-24.74-14.06 Low6.388.75-49.27-7.561.64-0.103.3217.91-35.43-30.94 Domestic Equity Comp E Net Ret22.5332.14-37.767.1813.018.1213.1833.74-21.30-10.98 48415356 Rank323857356141 S&P 500 1 Net Ret15.0526.45-36.995.5215.814.8910.8728.69-22.12-11.88 67666263 Rank676449473870 Item # 4 36 Attachment number 2 Page 41 of 200 City of Clearwater Return vs Risk Total Returns of Equity Portfolios 3 Years Ending 12/31/10 8.0 6.2 4.4 2.6 0.8 E Median -0.9 Return -2.7 S -4.5 -6.3 -8.2 -10.0 16.018.220.422.624.827.029.231.433.635.838.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank E Domestic Equity Comp0.264126.4654 S Standard & Poors 500-2.867424.9032 Median-0.8526.27 5 Years Ending 12/31/10 10.9 9.5 8.2 6.8 5.4 4.0 E Median Return 2.6 S 1.1 -0.2 -1.6 -3.0 12.013.815.617.419.221.022.824.626.428.230.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank E Domestic Equity Comp4.074420.8051 S Standard & Poors 5002.307619.6630 Median3.6220.84 Item # 4 37 Attachment number 2 Page 42 of 200 City of Clearwater Large Cap Equity Comp as of 12/31/10 Portfolio Performance (%) 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 -4.0 QtrYTD1 Year3 Year5 Year10 YearIncept 3/31/88 Large Cap Equity CompR1000 Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 3/31/88 Large Cap Equity Comp11.2016.8716.87-1.932.532.059.92 R1000 11.2016.1016.10-2.382.591.829.79 Asset Growth ($000) Beginning Market Value144,290105,398105,398130,607153,241216,16318,032 Net Contributions & Withdrawals2,00033,87033,87033,87033,87033,87033,870 Gain/Loss + Income16,36823,39023,390-1,819-24,453-87,375110,755 Ending Market Value162,657162,657162,657162,657162,657162,657162,657 Top Equity HoldingsGICS Sector Allocation GICS Sector% Port% Port Apple Computer Inc Information Technology4.38Energy11.68 Exxon Mobil Corp Energy4.37Materials8.87 Microsoft Corp Information Technology2.84Industrials12.31 Google Inc Information Technology2.58Consumer Discretionary14.12 Cisco Sys Inc Information Technology2.33Consumer Staples9.29 Oracle Systems Corp Information Technology2.31Health Care8.48 Qualcomm Inc Information Technology2.22Financials7.44 Philip Morris Intl IConsumer Staples2.12Information Technology25.73 McDonalds Corp Consumer Discretionary1.85Telecom Services0.65 Caterpillar Inc Industrials1.83Utilities1.41 Item # 4 Holdings and allocations only include SMA accounts. 38 Attachment number 2 Page 43 of 200 City of Clearwater Large Cap Equity Comp as of 12/31/10 Asset Allocation ($000) Cash & Equiv $3,184 1.96% Domestic Equity $159,473 98.04% Risk/Return Analysis Periods from 3/88 to 12/10 Alpha0.07 Beta0.98 R-Squared0.96 10.5 10.0 L 1 9.5 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 T 4.0 0.02.04.06.08.010.012.014.016.018.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Large Cap Equity Comp 9.92 16.41 0.35 0.02 L R1000 9.79 16.43 0.34 1 91-Day Treasury Bill 4.22 1.15 0.00 T Item # 4 Holdings and allocations only include SMA accounts. 39 Attachment number 2 Page 44 of 200 City of Clearwater Large Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/10 30% 25% 1 L 20% L 1 15% L1 10% L 1 5% L 1 L L1 1 1 L L 1 0% L 1 L 1 -5% LastLastLast 2Last 3Last 4Last 5Last 6Last 7Last 8Last 9Last 10 QtrYearYearsYearsYearsYearsYearsYearsYearsYearsYears High13.0220.2127.802.443.695.745.496.799.836.826.57 1st Qt11.5416.6422.76-1.610.123.063.885.218.254.533.06 2.924.077.033.161.55 Median10.7515.0920.76-2.75-0.702.38 3rd Qt10.5914.5120.51-2.88-0.852.312.753.866.693.031.43 Low8.8011.2316.46-4.53-2.521.152.053.326.052.540.95 Large Cap Equity Comp L Net Ret11.2016.8720.67-1.930.402.533.534.597.623.832.05 3540394041 Rank312368311941 R1000 1 Net Ret11.2016.1022.10-2.38-0.402.593.194.327.223.551.82 4445444344 Rank312832384139 Item # 4 40 Attachment number 2 Page 45 of 200 City of Clearwater Large Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 50% 40% 30% L 1 1 L 20% L 1 1 10% L 1 L L L 1 1 0% -10% 1 L -20% 1 L -30% L 1 -40% -50% 2010200920082007200620052004200320022001 High20.2138.93-27.8712.4420.5012.8019.9739.49-11.668.89 1st Qt16.6429.44-35.515.9116.489.0912.8431.48-20.66-6.89 10.9328.73-22.00-11.77 Median15.0926.70-36.935.5115.805.04 3rd Qt14.5126.29-37.215.0115.604.8810.8228.59-22.08-11.93 Low11.2318.60-42.02-0.2011.423.448.1624.60-23.79-12.38 Large Cap Equity Comp L Net Ret16.8724.59-35.237.7611.528.6311.2431.37-22.02-12.65 42265597 Rank238524129428 R1000 1 Net Ret16.1028.42-37.605.7715.466.2711.3929.90-21.65-12.46 40354196 Rank283580297941 Item # 4 41 Attachment number 2 Page 46 of 200 City of Clearwater Return vs Risk Total Returns of Large Neutral Portfolios 3 Years Ending 12/31/10 1.0 0.0 -1.0 L -2.0 1 Median -3.0 Return -4.0 -5.0 -6.0 -7.0 19.020.221.422.623.825.026.227.428.629.831.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank L Large Cap Equity Comp-1.933124.6329 1 R1000 -2.383825.4776 Median-2.7524.91 5 Years Ending 12/31/10 5.0 4.5 4.0 3.5 3.0 1 L 2.5 Median Return 2.0 1.5 1.0 0.5 0.0 14.015.116.217.318.419.520.621.722.823.925.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank L Large Cap Equity Comp2.534119.2820 1 R1000 2.593920.0372 Median2.3819.66 Item # 4 42 Attachment number 2 Page 47 of 200 City of Clearwater ING Investment Mgmt as of 12/31/10 Portfolio Performance (%) 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 QtrYTD1 Year3 Year5 Year10 YearIncept 12/31/87 ING Investment MgmtR1000G Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year12/31/87 ING Investment Mgmt10.9917.1017.10-0.884.081.8511.09 R1000G 11.8416.7216.72-0.473.760.029.14 Asset Growth ($000) Beginning Market Value80,62152,77552,77563,46251,550103,60417,469 Net Contributions & Withdrawals023,38723,38723,38723,38723,38723,387 Gain/Loss + Income8,86113,31913,3192,63314,544-37,51048,625 Ending Market Value89,48189,48189,48189,48189,48189,48189,481 Top Equity HoldingsGICS Sector Allocation GICS Sector% Port% Port Apple Computer Inc Information Technology5.80Energy9.86 Exxon Mobil Corp Energy5.09Materials4.43 Microsoft Corp Information Technology3.75Industrials12.25 Google Inc Information Technology3.41Consumer Discretionary15.37 Cisco Sys Inc Information Technology3.08Consumer Staples9.83 Oracle Systems Corp Information Technology3.05Health Care10.55 Qualcomm Inc Information Technology2.94Financials5.31 Philip Morris Intl IConsumer Staples2.80Information Technology31.54 National-Oilwell IncEnergy2.19Telecom Services0.86 Directv Consumer Discretionary2.17Utilities0.00 Item # 4 43 Attachment number 2 Page 48 of 200 City of Clearwater ING Investment Mgmt as of 12/31/10 Asset Allocation ($000) Cash & Equiv $1,569 1.75% Domestic Equity $87,912 98.25% Risk/Return Analysis Periods from 12/87 to 12/10 Alpha0.61 Beta0.83 R-Squared0.92 12.0 i 11.0 10.0 1 9.0 8.0 7.0 6.0 5.0 T 4.0 0.02.04.06.08.010.012.014.016.018.020.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio ING Investment Mgmt 11.09 16.44 0.42 0.21 i R1000G 9.14 18.98 0.26 1 91-Day Treasury Bill 4.24 1.15 0.00 T Item # 4 44 Attachment number 2 Page 49 of 200 City of Clearwater Large Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/10 40% 35% 30% 1 25% 20% i i 1 15% 1 i 10% i 1 i 5% i i 1 i 1 1 i 1 1 i 0% 1 1 i -5% -10% LastLastLast 2Last 3Last 4Last 5Last 6Last 7Last 8Last 9Last 10 QtrYearYearsYearsYearsYearsYearsYearsYearsYearsYears High15.6926.4536.283.387.456.686.667.9611.437.484.69 1st Qt12.6918.6927.37-0.013.914.735.456.459.455.482.71 4.425.448.534.281.56 Median11.6215.5024.96-1.672.183.50 3rd Qt10.3212.6521.35-3.081.022.523.664.467.093.210.83 Low7.557.1417.72-6.13-1.290.811.782.656.042.17-0.12 ING Investment Mgmt i Net Ret10.9917.1020.71-0.883.334.085.376.058.794.811.85 2631403540 Rank633778413333 R1000G 1 Net Ret11.8416.7226.55-0.472.473.764.014.347.222.590.02 6381688491 Rank434332344542 Item # 4 45 Attachment number 2 Page 50 of 200 City of Clearwater Large Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 60% 50% 40% 1 30% i 1 i 20% ii 1 10%i 1 i 1 i 1 1 0% -10% -20% 1 i i 1 -30% i -40% 1 -50% -60% 2010200920082007200620052004200320022001 High26.4554.26-29.4725.9915.7817.7121.3050.58-15.71-5.52 1st Qt18.6939.38-35.2119.4711.2512.5213.6833.26-20.78-12.60 11.0129.82-23.85-16.75 Median15.5034.43-38.5514.138.678.64 3rd Qt12.6529.68-42.4111.044.805.367.0326.33-27.67-20.69 Low7.1420.58-49.095.11-3.092.634.6718.63-33.45-26.21 ING Investment Mgmt i Net Ret17.1024.43-33.1817.107.1412.0210.2730.00-22.22-21.29 53493080 Rank379012336429 R1000G 1 Net Ret16.7237.21-38.4311.829.095.276.3029.75-27.89-20.42 81537973 Rank433349674977 Item # 4 46 Attachment number 2 Page 51 of 200 City of Clearwater December 31, 2010 Item # 4 47 Attachment number 2 Page 52 of 200 City of Clearwater Return vs Risk Total Returns of Large Growth Portfolios 3 Years Ending 12/31/10 6.0 4.5 3.0 1.5 0.0 1 i Median -1.5 Return -3.0 -4.5 -6.0 -7.5 -9.0 16.018.020.022.024.026.028.030.032.034.036.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank i ING Investment Mgmt-0.884122.6813 1 R1000G -0.473425.4547 Median-1.6725.88 5 Years Ending 12/31/10 9.0 7.9 6.8 5.7 4.6 i 1 Median 3.5 Return 2.4 1.3 0.2 -0.9 -2.0 13.014.415.817.218.620.021.422.824.225.627.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank i ING Investment Mgmt4.083318.0414 1 R1000G 3.764219.9449 Median3.5020.04 Item # 4 48 Attachment number 2 Page 53 of 200 City of Clearwater Equity Summary Statistics ING Investment Mgmt Period Ending 12/10 PortfolioR1000G Total Number Of Securities59627 Equity Market Value87,912,260 Average Capitalization $(000)88,756,56285,308,940 Median Capitalization $(000)21,143,4506,019,661 Equity Segment Yield1.171.41 Equity Segment P/E - Average19.8218.84 Equity Segment P/E - Median18.9019.63 Equity Segment Beta1.061.01 Price/Book Ratio3.393.86 Debt/Equity Ratio36.2732.84 Five Year Earnings Growth10.049.58 Ten Largest Holdings Market Value% of PortfolioQuarterly Ret Apple Computer Inc 5,093,2225.8013.68 Exxon Mobil Corp 4,475,6755.0919.07 Microsoft Corp 3,296,2073.7514.71 Google Inc 2,997,1733.4112.97 Cisco Sys Inc 2,708,1293.08-7.63 Oracle Systems Corp 2,681,4403.0516.79 Qualcomm Inc 2,580,2112.9410.12 Philip Morris Intl I2,458,0262.805.62 National-Oilwell Inc1,925,5022.1951.49 Directv 1,904,1022.17-4.08 Ten Best PerformersTen Worst Performers Quarterly RetQuarterly Ret National-Oilwell Inc51.49Sprint Nextel Corp -8.64 Freeport-McMoran Cop42.33Cisco Sys Inc -7.63 Whole Foods Mkt Inc 36.32Directv -4.08 Arch Coal Inc 31.70Aetna Inc -3.36 Coach Inc 29.09Hospira Inc -2.32 Occidental Pete Corp25.81Pepsico Inc -0.95 Broadcom Corp 23.28Hershey Foods Corp -0.24 Ansys Inc 23.24Citrix Sys Inc 0.25 Harley Davidson Inc 22.26Wal Mart Stores Inc 1.33 Verisk Analytics Inc21.67Gilead Sciences Inc 1.77 Item # 4 49 Attachment number 2 Page 54 of 200 City of Clearwater Equity Contribution to Return ING Investment Mgmt Period Ending 12/10 PortfolioR1000G Total Number Of Securities59627 Equity Market Value87,912,260 Average Capitalization $(000)88,756,56285,308,940 Median Capitalization $(000)21,143,4506,019,661 Equity Segment Yield1.171.41 Equity Segment P/E - Average19.8218.84 Equity Segment P/E - Median18.9019.63 Equity Segment Beta1.061.01 Price/Book Ratio3.393.86 Debt/Equity Ratio36.2732.84 Five Year Earnings Growth10.049.58 Ten Best Contributors Market Value% of PortfolioQuarterly Ret National-Oilwell Inc1,925,5022.1951.49 Exxon Mobil Corp 4,475,6755.0919.07 Apple Computer Inc 5,093,2225.8013.68 Freeport-McMoran Cop1,251,3381.4242.33 Microsoft Corp 3,296,2073.7514.71 Oracle Systems Corp 2,681,4403.0516.79 Arch Coal Inc 1,323,1991.5131.70 Google Inc 2,997,1733.4112.97 Harley Davidson Inc 1,401,2571.5922.26 Caterpillar Inc 1,576,7661.7919.70 Ten Worst Contributors Market Value% of PortfolioQuarterly Ret Cisco Sys Inc 2,708,1293.08-7.63 Directv 1,904,1022.17-4.08 Sprint Nextel Corp 757,6780.86-8.64 Hospira Inc 1,361,0081.55-2.32 Aetna Inc 785,9380.89-3.36 Pepsico Inc 1,366,7041.56-0.95 Hershey Foods Corp 540,3390.62-0.24 Citrix Sys Inc 1,245,7461.420.25 Wal Mart Stores Inc 1,586,0811.811.33 Gilead Sciences Inc 1,236,9441.411.77 Item # 4 50 Attachment number 2 Page 55 of 200 City of Clearwater Equity Sector Attribution Analysis ING Investment Mgmt Quarter Ending 12/10 WeightReturnSelection GICS SectorsPortfolioIndexPortfolioIndexStockSectorTotal Energy8.229.9727.4321.570.48-0.170.31 Materials5.074.979.3620.01-0.540.01-0.53 Industrials14.7413.1814.4312.910.220.020.24 Consumer Discretionary13.1714.6710.2512.86-0.34-0.02-0.36 Consumer Staples8.219.917.236.410.070.090.16 Health Care12.3410.207.946.190.22-0.120.10 Financials5.904.6410.5910.230.02-0.020.00 Information Technology31.3131.4510.6210.62-0.000.000.00 Telecom. Services1.040.93-8.642.50-0.12-0.01-0.13 Utilities0.000.093.010.000.010.01 100.00100.0011.6411.840.01-0.21-0.20 Index - R1000G Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfol Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] Trading Effect -0.48% [ Actual Return 11.16% ] - [ Buy Hold Return 11.64% ] Item # 4 51 Attachment number 2 Page 56 of 200 City of Clearwater Equity Sector Attribution Chart ING Investment Mgmt Quarter Ending 12/10 % Allocation% Return% Variance 8.2227.43 Energy 0.31 9.9721.57 5.079.36 Materials -0.53 4.9720.01 14.7414.43 Industrials 0.24 13.1812.91 13.1710.25 -0.36 Con. Discretionary 14.6712.86 8.217.23 0.16 Consumer Staples 9.916.41 12.347.94 0.10 Health Care 10.206.19 5.9010.59 0.00 Financials 4.6410.23 0.00 31.3110.62 Infomation Tech. 31.4510.62 -0.13 1.04-8.64 Telecom. Services 0.932.50 0.01 0.00 Utilities 0.093.01 ING Investment MgmtR1000G Item # 4 52 Attachment number 2 Page 57 of 200 City of Clearwater Aletheia Research as of 12/31/10 Portfolio Performance (%) 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 -4.0 -6.0 QtrYTD1 Year3 Year5 Year10 YearIncept 6/30/07 Aletheia ResearchR1000V Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 6/30/07 Aletheia Research12.7516.9816.98-0.32-1.97 R1000V 10.5415.5115.51-4.42-5.50 Asset Growth ($000) Beginning Market Value24,91415,61315,61318,44319,365 Net Contributions & Withdrawals2,00010,48310,48310,48310,483 Gain/Loss + Income3,4214,2404,2401,410488 Ending Market Value30,33630,33630,33630,33630,336 Top Equity HoldingsGICS Sector Allocation GICS Sector% Port% Port MGM Grand Inc Consumer Discretionary2.38Energy17.34 Silver Wheaton Corp Materials2.32Materials22.65 Atp Oil & Gas Corp Energy2.31Industrials12.50 Continental ResourceEnergy2.26Consumer Discretionary10.28 Ishares Silver TrustFinancials2.23Consumer Staples7.61 Canadian Nat Res LtdEnergy2.22Health Care2.08 Hess Corp Energy2.20Financials14.04 United States Stl CoMaterials2.19Information Technology7.70 Exxon Mobil Corp Energy2.13Telecom Services0.00 Suncor Energy Inc NeIndustrials2.09Utilities5.80 Item # 4 53 Attachment number 2 Page 58 of 200 City of Clearwater Aletheia Research as of 12/31/10 Asset Allocation ($000) Cash & Equiv $1,615 5.32% Domestic Equity $28,721 94.68% Risk/Return Analysis Periods from 6/07 to 12/10 Alpha1.08 Beta1.03 R-Squared0.91 2.0 T 1.0 0.0 -1.0 -2.0 a -3.0 -4.0 -5.0 1 -6.0 0.02.04.06.08.010.012.014.016.018.020.022.024.026.028.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Aletheia Research -1.97 26.55 -0.13 0.50 a R1000V -5.50 24.52 -0.28 1 91-Day Treasury Bill 1.36 0.90 0.00 T Item # 4 54 Attachment number 2 Page 59 of 200 City of Clearwater Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/10 35% 30% a 25% 20% 1 a 15% 1 a 10% 1 5% 0% a -5% 1 -10% LastLastLast 2Last 3 QtrYearYearsYears High13.6621.2229.612.20 1st Qt11.2416.3422.67-1.83 Median10.2613.9519.31-3.20 3rd Qt8.3111.8417.52-4.40 Low5.679.4813.45-6.29 Aletheia Research a Net Ret12.7516.9826.36-0.32 Rank8201314 R1000V 1 Net Ret10.5415.5117.58-4.42 Rank43327475 Item # 4 55 Attachment number 2 Page 60 of 200 City of Clearwater Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 50% 40% a 30% 20% 1 a 1 10% 0% -10% -20% -30% 1 a -40% -50% 201020092008 High21.2241.44-26.51 1st Qt16.3429.54-34.31 Median13.9524.49-36.88 3rd Qt11.8420.94-39.77 Low9.4816.32-44.44 Aletheia Research a Net Ret16.9836.50-37.97 Rank201461 R1000V 1 Net Ret15.5119.69-36.85 Rank328649 Item # 4 56 Attachment number 2 Page 61 of 200 City of Clearwater December 31, 2010 Item # 4 57 Attachment number 2 Page 62 of 200 City of Clearwater Return vs Risk Total Returns of Large Value Portfolios 3 Years Ending 12/31/10 4.0 2.6 1.1 -0.2 a -1.6 -3.0 Median Return -4.4 1 -5.8 -7.2 -8.6 -10.0 14.016.418.821.223.626.028.430.833.235.638.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank a Aletheia Research-0.321428.6781 1 R1000V -4.427526.4757 Median-3.2026.27 Item # 4 58 Attachment number 2 Page 63 of 200 City of Clearwater Equity Summary Statistics Aletheia Research Period Ending 12/10 PortfolioR1000V Total Number Of Securities67668 Equity Market Value28,721,160 Average Capitalization $(000)50,153,70271,126,278 Median Capitalization $(000)15,719,9934,794,409 Equity Segment Yield1.392.16 Equity Segment P/E - Average75.8517.11 Equity Segment P/E - Median15.0416.10 Equity Segment Beta1.191.03 Price/Book Ratio1.941.60 Debt/Equity Ratio50.7854.33 Five Year Earnings Growth-2.39-0.74 Ten Largest Holdings Market Value% of PortfolioQuarterly Ret MGM Grand Inc 675,5272.3831.65 Silver Wheaton Corp 657,0432.3246.49 Atp Oil & Gas Corp 654,9532.3122.64 Continental Resource641,4652.2626.94 Ishares Silver Trust632,7242.2341.62 Canadian Nat Res Ltd628,0992.2228.61 Hess Corp 622,6532.2029.64 United States Stl Co620,7132.1933.40 Exxon Mobil Corp 604,7022.1319.07 Suncor Energy Inc Ne591,3892.0917.97 Ten Best PerformersTen Worst Performers Quarterly RetQuarterly Ret Novagold Res Inc 63.27Dean Foods Co New -13.42 Dole Food Co Inc New47.65Barnes & Nobles Inc -11.25 Silver Wheaton Corp 46.49Sunpower Corp -10.90 Freeport-McMoran Cop42.33Aol Inc -4.20 Ishares Silver Trust41.62Sanofi-Aventis -3.07 Fluor Corp 34.06Newmont Mng Corp Hld-1.97 United States Stl Co33.40Boeing Co -1.33 MGM Grand Inc 31.65M D C Corp Colo -0.04 Mosaic Co 30.04Johnson & Johnson 0.69 Hess Corp 29.64United Contl Hldgs I0.80 Item # 4 59 Attachment number 2 Page 64 of 200 City of Clearwater Equity Contribution to Return Aletheia Research Period Ending 12/10 PortfolioR1000V Total Number Of Securities67668 Equity Market Value28,721,160 Average Capitalization $(000)50,153,70271,126,278 Median Capitalization $(000)15,719,9934,794,409 Equity Segment Yield1.392.16 Equity Segment P/E - Average75.8517.11 Equity Segment P/E - Median15.0416.10 Equity Segment Beta1.191.03 Price/Book Ratio1.941.60 Debt/Equity Ratio50.7854.33 Five Year Earnings Growth-2.39-0.74 Ten Best Contributors Market Value% of PortfolioQuarterly Ret Novagold Res Inc 575,7232.0363.27 Silver Wheaton Corp 657,0432.3246.49 Dole Food Co Inc New580,6602.0547.65 Ishares Silver Trust632,7242.2341.62 MGM Grand Inc 675,5272.3831.65 United States Stl Co620,7132.1933.40 Hess Corp 622,6532.2029.64 Canadian Nat Res Ltd628,0992.2228.61 Continental Resource641,4652.2626.94 Atp Oil & Gas Corp 654,9532.3122.64 Ten Worst Contributors Market Value% of PortfolioQuarterly Ret Sunpower Corp 447,4461.58-10.90 Barnes & Nobles Inc 345,5431.22-11.25 Dean Foods Co New 164,4680.58-13.42 Aol Inc 329,8061.16-4.20 Newmont Mng Corp Hld502,1901.77-1.97 Boeing Co 438,5471.55-1.33 Sanofi-Aventis 186,9340.66-3.07 M D C Corp Colo 267,9930.95-0.04 General Motors Corp.387,3991.37 United Contl Hldgs I263,3540.930.80 Item # 4 60 Attachment number 2 Page 65 of 200 City of Clearwater Equity Sector Attribution Analysis Aletheia Research Quarter Ending 12/10 WeightReturnSelection GICS SectorsPortfolioIndexPortfolioIndexStockSectorTotal Energy15.9511.3319.3522.27-0.470.540.08 Materials21.742.9223.2317.881.161.382.55 Industrials10.538.9719.1712.910.660.040.70 Consumer Discretionary10.747.5013.9313.900.000.110.11 Consumer Staples10.2910.31-16.926.16-2.370.00-2.37 Health Care2.5213.40-0.463.19-0.090.800.71 Financials13.8627.3214.2211.040.44-0.070.37 Information Technology6.555.484.1612.12-0.520.02-0.50 Telecom. Services0.005.357.490.000.160.16 Utilities7.837.435.521.860.29-0.040.25 100.00100.0012.5710.53-0.902.952.04 Index - R1000V Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfol Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] Trading Effect 0.85% [ Actual Return 13.43% ] - [ Buy Hold Return 12.57% ] Item # 4 61 Attachment number 2 Page 66 of 200 City of Clearwater Equity Sector Attribution Chart Aletheia Research Quarter Ending 12/10 % Allocation% Return% Variance 15.9519.35 Energy 0.08 11.3322.27 21.7423.23 Materials 2.55 2.9217.88 10.5319.17 Industrials 0.70 8.9712.91 10.7413.93 0.11 Con. Discretionary 7.5013.90 10.29-16.92 -2.37 Consumer Staples 10.316.16 2.52-0.46 0.71 Health Care 13.403.19 13.8614.22 0.37 Financials 27.3211.04 -0.50 6.554.16 Infomation Tech. 5.4812.12 0.16 0.00 Telecom. Services 5.357.49 0.25 7.835.52 Utilities 7.431.86 Aletheia ResearchR1000V Item # 4 62 Attachment number 2 Page 67 of 200 City of Clearwater NTGI-QM R1000V as of 12/31/10 Portfolio Performance (%) 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 -4.0 -6.0 QtrYTD1 Year3 Year5 Year10 YearIncept 6/30/07 NTGI-QM R1000VR1000V Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 6/30/07 NTGI-QM R1000V10.5415.7515.75-4.19-5.27 R1000V 10.5415.5115.51-4.42-5.50 Asset Growth ($000) Beginning Market Value38,75537,00937,00948,69626,197 Net Contributions & Withdrawals00000 Gain/Loss + Income4,0855,8315,831-5,85616,643 Ending Market Value42,84042,84042,84042,84042,840 Item # 4 63 Attachment number 2 Page 68 of 200 City of Clearwater NTGI-QM R1000V as of 12/31/10 Asset Allocation ($000) Domestic Equity $42,840 100.00% Risk/Return Analysis Periods from 6/07 to 12/10 Alpha0.06 Beta1.00 R-Squared1.00 2.0 T 1.0 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 n 1 -6.0 0.02.04.06.08.010.012.014.016.018.020.022.024.026.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio NTGI-QM R1000V -5.27 24.55 -0.27 1.25 n R1000V -5.50 24.52 -0.28 1 91-Day Treasury Bill 1.36 0.90 0.00 T Item # 4 64 Attachment number 2 Page 69 of 200 City of Clearwater Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/10 35% 30% 25% 20% n 1 15%n 1 10% n1 5% 0% n -5% 1 -10% LastLastLast 2Last 3 QtrYearYearsYears High13.6621.2229.612.20 1st Qt11.2416.3422.67-1.83 Median10.2613.9519.31-3.20 3rd Qt8.3111.8417.52-4.40 Low5.679.4813.45-6.29 NTGI-QM R1000V n Net Ret10.5415.7518.03-4.19 Rank43296671 R1000V 1 Net Ret10.5415.5117.58-4.42 Rank43327475 Item # 4 65 Attachment number 2 Page 70 of 200 City of Clearwater Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 50% 40% 30% 20% n 1 n 1 10% 0% -10% -20% -30% n1 -40% -50% 201020092008 High21.2241.44-26.51 1st Qt16.3429.54-34.31 Median13.9524.49-36.88 3rd Qt11.8420.94-39.77 Low9.4816.32-44.44 NTGI-QM R1000V n Net Ret15.7520.35-36.86 Rank298049 R1000V 1 Net Ret15.5119.69-36.85 Rank328649 Item # 4 66 Attachment number 2 Page 71 of 200 City of Clearwater December 31, 2010 Item # 4 67 Attachment number 2 Page 72 of 200 City of Clearwater Return vs Risk Total Returns of Equity Portfolios 3 Years Ending 12/31/10 8.0 6.2 4.4 2.6 0.8 Median -0.9 Return -2.7 n -4.5 1 -6.3 -8.2 -10.0 16.018.220.422.624.827.029.231.433.635.838.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank n NTGI-QM R1000V-4.198726.5054 1 R1000V -4.428926.4754 Median-0.8526.27 Item # 4 68 Attachment number 2 Page 73 of 200 City of Clearwater Mid Cap Equity Comp as of 12/31/10 Portfolio Performance (%) 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 QtrYTD1 Year3 Year5 Year10 YearIncept 3/31/88 Mid Cap Equity CompR Mid Cap Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 3/31/88 Mid Cap Equity Comp13.7328.0328.032.706.095.5312.30 R Mid Cap 13.0825.4925.491.054.666.5411.56 Asset Growth ($000) Beginning Market Value71,95063,91463,91491,35291,49287,25315,585 Net Contributions & Withdrawals0000000 Gain/Loss + Income9,87917,91617,916-9,523-9,662-5,42466,244 Ending Market Value81,82981,82981,82981,82981,82981,82981,829 Top Equity HoldingsGICS Sector Allocation GICS Sector% Port% Port Borg-Warner AutomotiConsumer Discretionary3.12Energy3.67 Computer Sciences CoInformation Technology2.13Materials4.53 Sonoco Prods Co Materials2.03Industrials21.67 Donnelley R R & SonsIndustrials2.00Consumer Discretionary15.83 Cerner Corp Health Care1.97Consumer Staples2.84 Simon Ppty Group IncFinancials1.92Health Care9.74 Duke Realty Corp. Financials1.91Financials16.54 Dover Corp Industrials1.90Information Technology20.58 Carlisle Corp Industrials1.84Telecom Services0.00 Sara Lee Corp Consumer Staples1.76Utilities4.61 Item # 4 Holdings and allocations only include SMA accounts. 69 Attachment number 2 Page 74 of 200 City of Clearwater Mid Cap Equity Comp as of 12/31/10 Asset Allocation ($000) Cash & Equiv $2,570 3.14% Domestic Equity $79,259 96.86% Risk/Return Analysis Periods from 3/88 to 12/10 Alpha0.06 Beta1.16 R-Squared0.82 13.0 M 12.0 1 11.0 10.0 9.0 8.0 7.0 6.0 5.0 T 4.0 0.02.04.06.08.010.012.014.016.018.020.022.024.026.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Mid Cap Equity Comp 12.30 23.65 0.34 0.11 M R Mid Cap 11.56 18.38 0.40 1 91-Day Treasury Bill 4.22 1.15 0.00 T Item # 4 Holdings and allocations only include SMA accounts. 70 Attachment number 2 Page 75 of 200 City of Clearwater Midcap Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/10 50% 45% 40% M 35% 1 30% M 25% 1 20% 15% M 1 1 M 10% 1 1 M M 1 M M 1 5% M 1 M M 1 1 0% -5% LastLastLast 2Last 3Last 4Last 5Last 6Last 7Last 8Last 9Last 10 QtrYearYearsYearsYearsYearsYearsYearsYearsYearsYears High18.3234.8144.699.917.259.5110.2711.5414.5811.1712.46 1st Qt13.9126.9734.804.506.068.129.1610.8812.979.5911.19 6.978.8011.358.127.31 Median13.4124.8431.882.914.115.54 3rd Qt13.0723.0429.311.322.194.455.657.7710.667.887.00 Low9.8420.5722.59-2.64-1.092.764.086.509.226.696.79 Mid Cap Equity Comp M Net Ret13.7328.0336.402.704.546.096.387.5011.017.065.53 60756289100 Rank272019514036 R Mid Cap 1 Net Ret13.0825.4932.771.052.174.665.957.8911.467.996.54 6566426699 Rank734638767561 Item # 4 71 Attachment number 2 Page 76 of 200 City of Clearwater Midcap Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 70% 60% 50% M 40% 1 1 M 30% M 1 20% 1 1 M 1 M 10% M M 1 0% 1 M -10% 1 -20% M -30% -40% 1 M -50% -60% 2010200920082007200620052004200320022001 High34.8161.89-21.0716.9824.5717.4724.5943.43-4.5226.71 1st Qt26.9742.82-32.739.2618.6112.6021.1739.40-9.8115.75 19.9336.44-12.330.43 Median24.8437.59-36.935.9214.0111.35 3rd Qt23.0435.51-41.77-0.0610.568.5316.7134.16-14.56-3.06 Low20.5726.66-50.25-2.868.211.2413.8027.16-16.55-5.61 Mid Cap Equity Comp M Net Ret28.0345.33-41.7910.2612.537.8514.4838.95-19.87-7.30 93359999 Rank202178155879 R Mid Cap 1 Net Ret25.4940.47-41.465.5915.2712.6520.2340.08-16.19-5.62 45129199 Rank463472504123 Item # 4 72 Attachment number 2 Page 77 of 200 City of Clearwater Return vs Risk Total Returns of Midcap Neutral Portfolios 3 Years Ending 12/31/10 12.0 10.2 8.4 6.6 4.8 Median 3.0 M Return 1.2 1 -0.5 -2.3 -4.2 -6.0 14.016.819.622.425.228.030.833.636.439.242.0 Historical Standard Deviation of Return Annualized ReturnStandard Deviation ValueRankValueRank M Mid Cap Equity Comp2.705129.4866 1 R Mid Cap 1.057630.0980 Median2.9128.43 5 Years Ending 12/31/10 9.9 9.0 8.2 7.3 6.4 M Median 5.5 Return 1 4.6 3.7 2.8 1.9 1.0 12.014.216.418.620.823.025.227.429.631.834.0 Historical Standard Deviation of Return Annualized ReturnStandard Deviation ValueRankValueRank M Mid Cap Equity Comp6.093623.3678 1 R Mid Cap 4.666123.5482 Median5.5422.26 Item # 4 73 Attachment number 2 Page 78 of 200 City of Clearwater Artisan Partners as of 12/31/10 Portfolio Performance (%) 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 QtrYTD1 Year3 Year5 Year10 YearIncept 7/31/01 Artisan PartnersR Mid Cap G Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 7/31/01 Artisan Partners14.1733.1533.154.819.338.26 R Mid Cap G 14.0126.3926.390.974.885.62 Asset Growth ($000) Beginning Market Value35,81030,70830,70826,36440,42029,914 Net Contributions & Withdrawals000000 Gain/Loss + Income5,07610,17810,17814,52246610,972 Ending Market Value40,88640,88640,88640,88640,88640,886 Top Equity HoldingsGICS Sector Allocation GICS Sector% Port% Port Cerner Corp Health Care3.95Energy5.26 Precision Castparts Industrials3.06Materials0.00 Agilent TechnologiesHealth Care3.05Industrials21.26 Cooper Industries PlIndustrials2.99Consumer Discretionary20.70 Borg-Warner AutomotiConsumer Discretionary2.92Consumer Staples0.00 Trimble Navigation LInformation Technology2.88Health Care16.34 Allergan Inc Health Care2.62Financials7.37 C H Robinson WorldwiIndustrials2.37Information Technology29.07 Roper Inds Inc New Industrials2.34Telecom Services0.00 Citrix Sys Inc Information Technology2.28Utilities0.00 Item # 4 74 Attachment number 2 Page 79 of 200 City of Clearwater Artisan Partners as of 12/31/10 Asset Allocation ($000) Cash & Equiv $1,286 3.15% Domestic Equity $39,599 96.85% Risk/Return Analysis Periods from 7/01 to 12/10 Alpha0.59 Beta0.94 R-Squared0.96 8.5 r 8.0 7.5 7.0 6.5 6.0 1 5.5 5.0 4.5 4.0 3.5 3.0 2.5 T 2.0 0.02.04.06.08.010.012.014.016.018.020.022.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Artisan Partners 8.26 20.56 0.29 0.36 r R Mid Cap G 5.62 20.62 0.17 1 91-Day Treasury Bill 2.22 0.52 0.00 T Item # 4 75 Attachment number 2 Page 80 of 200 City of Clearwater Midcap Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/10 45% r 40% 1 35% r 30% 1 25% 20% 15% r 1 r 1 10% r r r r r 1 11 5% 1 r 1 1 0% -5% LastLastLast 2Last 3Last 4Last 5Last 6Last 7Last 8Last 9 QtrYearYearsYearsYearsYearsYearsYearsYearsYears High20.8435.4442.955.608.969.4510.1110.9314.909.51 1st Qt15.6929.5536.493.957.317.939.419.8612.989.23 7.878.4412.018.01 Median13.9626.9633.681.334.926.53 3rd Qt12.4024.3429.73-0.523.545.356.437.9611.276.17 Low8.4018.4426.93-4.22-0.982.984.857.029.905.72 Artisan Partners r Net Ret14.1733.1541.974.818.949.339.4810.4013.098.30 1981741 Rank48881867 R Mid Cap G 1 Net Ret14.0126.3935.980.973.494.886.057.3511.246.09 89877581 Rank485730597585 Item # 4 76 Attachment number 2 Page 81 of 200 City of Clearwater Midcap Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 70% 60% 50% r 1 1 40% r r 30% 1 r 20% r 1 10%1 1 r 1 r 0% -10% -20% r 1 -30% -40% r 1 -50% -60% 201020092008200720062005200420032002 High35.4458.21-33.1325.5130.3223.2024.9851.00-8.61 1st Qt29.5546.06-36.9721.5516.2014.8318.3939.45-19.46 16.3537.89-21.96 Median26.9638.63-40.9016.6813.3412.36 3rd Qt24.3436.32-44.2810.3910.419.8512.6732.91-25.52 Low18.4428.46-49.084.905.335.7010.8629.41-31.39 Artisan Partners r Net Ret33.1551.38-42.8722.3110.9410.1916.0733.84-23.37 616761 Rank81462176864 R Mid Cap G 1 Net Ret26.3946.30-44.3211.4110.6412.1015.4842.72-27.41 611585 Rank572475716852 Item # 4 77 Attachment number 2 Page 82 of 200 City of Clearwater December 31, 2010 Item # 4 78 Attachment number 2 Page 83 of 200 City of Clearwater Return vs Risk Total Returns of Midcap Growth Portfolios 3 Years Ending 12/31/10 10.0 8.0 6.0 r 4.0 2.0 Median 1 Return 0.0 -2.0 -4.0 -6.0 16.018.420.823.225.628.030.432.835.237.640.0 Historical Standard Deviation of Return Annualized ReturnStandard Deviation ValueRankValueRank r Artisan Partners4.811829.4961 1 R Mid Cap G 0.975930.4571 Median1.3327.80 5 Years Ending 12/31/10 10.9 10.0 r 9.2 8.3 7.4 Median 6.5 Return 5.6 1 4.7 3.8 2.9 2.0 14.015.817.619.421.223.024.826.628.430.232.0 Historical Standard Deviation of Return Annualized ReturnStandard Deviation ValueRankValueRank r Artisan Partners9.33723.3858 1 R Mid Cap G 4.888523.8263 Median6.5322.42 Item # 4 79 Attachment number 2 Page 84 of 200 City of Clearwater Equity Summary Statistics Artisan Partners Period Ending 12/10 PortfolioR Mid Cap G Total Number Of Securities73493 Equity Market Value39,599,233 Average Capitalization $(000)10,599,6218,177,990 Median Capitalization $(000)7,146,4294,502,943 Equity Segment Yield0.430.85 Equity Segment P/E - Average35.6024.59 Equity Segment P/E - Median31.9420.46 Equity Segment Beta1.201.15 Price/Book Ratio4.213.97 Debt/Equity Ratio20.7438.21 Five Year Earnings Growth8.236.21 Ten Largest Holdings Market Value% of PortfolioQuarterly Ret Cerner Corp 1,563,2103.9512.80 Precision Castparts 1,211,1273.069.34 Agilent Technologies1,205,6133.0524.15 Cooper Industries Pl1,183,2872.9919.72 Borg-Warner Automoti1,157,7602.9237.51 Trimble Navigation L1,141,9982.8813.96 Allergan Inc 1,036,9172.623.29 C H Robinson Worldwi938,2232.3715.11 Roper Inds Inc New 924,8032.3417.43 Citrix Sys Inc 903,0122.280.25 Ten Best PerformersTen Worst Performers Quarterly RetQuarterly Ret Lululemon Athletica 53.00Home Inns & Hotels M-17.15 Borg-Warner Automoti37.51Ctrip Com Intl Ltd -15.29 Dicks Sporting Goods33.74First Solar Inc -11.68 Tesla Mtrs Inc 31.44Hdfc Bank Ltd -9.36 Fossil Inc 31.03Intuitive Surgical I-9.16 Coach Inc 29.09Mercadolibre Inc -7.66 Wynn Resorts Ltd 28.97Gsi Commerce Inc -6.07 Illumina Inc 28.74Citrix Sys Inc 0.25 Varian Semiconductor28.46Core Laboratories N 1.22 Gardner Denver Machy28.31Garmin Ltd 2.11 Item # 4 80 Attachment number 2 Page 85 of 200 City of Clearwater Equity Contribution to Return Artisan Partners Period Ending 12/10 PortfolioR Mid Cap G Total Number Of Securities73493 Equity Market Value39,599,233 Average Capitalization $(000)10,599,6218,177,990 Median Capitalization $(000)7,146,4294,502,943 Equity Segment Yield0.430.85 Equity Segment P/E - Average35.6024.59 Equity Segment P/E - Median31.9420.46 Equity Segment Beta1.201.15 Price/Book Ratio4.213.97 Debt/Equity Ratio20.7438.21 Five Year Earnings Growth8.236.21 Ten Best Contributors Market Value% of PortfolioQuarterly Ret Borg-Warner Automoti1,157,7602.9237.51 Agilent Technologies1,205,6133.0524.15 Lululemon Athletica 526,8341.3353.00 Coach Inc 890,4912.2529.09 Fossil Inc 775,2801.9631.03 Cooper Industries Pl1,183,2872.9919.72 Polo Ralph Lauren Co898,4522.2723.55 Gardner Denver Machy722,6101.8328.31 Cerner Corp 1,563,2103.9512.80 Cme Group Inc 817,5672.0723.98 Ten Worst Contributors Market Value% of PortfolioQuarterly Ret Ctrip Com Intl Ltd 513,7151.30-15.29 Home Inns & Hotels M253,9520.64-17.15 Hdfc Bank Ltd 367,6420.93-9.36 Gsi Commerce Inc 528,9601.34-6.07 Mercadolibre Inc 413,2301.04-7.66 First Solar Inc 208,2240.53-11.68 Intuitive Surgical I129,3910.33-9.16 Booz Allen Hamilton 99,0930.25 Opentable Inc 28,1920.073.53 Citrix Sys Inc 903,0122.280.25 Item # 4 81 Attachment number 2 Page 86 of 200 City of Clearwater Equity Sector Attribution Analysis Artisan Partners Quarter Ending 12/10 WeightReturnSelection GICS SectorsPortfolioIndexPortfolioIndexStockSectorTotal Energy5.175.5315.5324.74-0.48-0.04-0.51 Materials0.007.0215.770.00-0.12-0.12 Industrials19.2315.6117.9317.130.150.110.26 Consumer Discretionary21.0120.0819.9314.991.040.011.05 Consumer Staples0.004.849.070.000.240.24 Health Care12.8112.9914.479.200.680.010.68 Financials7.566.977.5412.65-0.39-0.01-0.39 Information Technology34.2324.5810.6413.33-0.92-0.07-0.99 Telecom. Services0.002.063.560.000.220.22 Utilities0.000.313.010.000.030.03 100.00100.0014.5014.040.080.380.47 Index - R Mid Cap G Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfol Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] Trading Effect 0.09% [ Actual Return 14.59% ] - [ Buy Hold Return 14.50% ] Item # 4 82 Attachment number 2 Page 87 of 200 City of Clearwater Equity Sector Attribution Chart Artisan Partners Quarter Ending 12/10 % Allocation% Return% Variance 5.1715.53 Energy -0.51 5.5324.74 0.00 Materials -0.12 7.0215.77 19.2317.93 Industrials 0.26 15.6117.13 21.0119.93 1.05 Con. Discretionary 20.0814.99 0.00 0.24 Consumer Staples 4.849.07 12.8114.47 0.68 Health Care 12.999.20 7.567.54 -0.39 Financials 6.9712.65 -0.99 34.2310.64 Infomation Tech. 24.5813.33 0.22 0.00 Telecom. Services 2.063.56 0.03 0.00 Utilities 0.313.01 Artisan PartnersR Mid Cap G Item # 4 83 Attachment number 2 Page 88 of 200 City of Clearwater Wedge Capital Mgmt as of 12/31/10 Portfolio Performance (%) 26.0 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 QtrYTD1 Year3 Year5 Year10 YearIncept 2/28/07 Wedge Capital MgmtR Mid Cap V Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 2/28/07 Wedge Capital Mgmt13.2923.3023.303.602.07 R Mid Cap V 12.2424.7624.761.01-0.53 Asset Growth ($000) Beginning Market Value36,14033,20633,20629,53930,365 Net Contributions & Withdrawals00000 Gain/Loss + Income4,8037,7387,73811,40410,578 Ending Market Value40,94340,94340,94340,94340,943 Top Equity HoldingsGICS Sector Allocation GICS Sector% Port% Port Computer Sciences CoInformation Technology4.25Energy2.08 Sonoco Prods Co Materials4.06Materials9.05 Donnelley R R & SonsIndustrials3.99Industrials22.08 Simon Ppty Group IncFinancials3.85Consumer Discretionary10.96 Duke Realty Corp. Financials3.81Consumer Staples5.68 Dover Corp Industrials3.81Health Care3.14 Carlisle Corp Industrials3.68Financials25.71 Sara Lee Corp Consumer Staples3.51Information Technology12.10 Lincoln Natl Corp InFinancials3.50Telecom Services0.00 Allstate Corp Financials3.39Utilities9.21 Item # 4 84 Attachment number 2 Page 89 of 200 City of Clearwater Wedge Capital Mgmt as of 12/31/10 Asset Allocation ($000) Cash & Equiv $1,283 3.13% Domestic Equity $39,660 96.87% Risk/Return Analysis Periods from 2/07 to 12/10 Alpha0.62 Beta0.97 R-Squared0.97 2.5 w 2.0 T 1.5 1.0 0.5 0.0 -0.5 1 -1.0 0.02.04.06.08.010.012.014.016.018.020.022.024.026.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Wedge Capital Mgmt 2.07 24.22 0.02 0.46 w R Mid Cap V -0.53 24.80 -0.09 1 91-Day Treasury Bill 1.69 0.61 0.00 T Item # 4 85 Attachment number 2 Page 90 of 200 City of Clearwater Midcap Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/10 50% 45% 40% 35% 30% w 1 25% 1 w 20% 15% w 1 10% 5% w 1 0% -5% LastLastLast 2Last 3 QtrYearYearsYears High16.3932.4145.527.58 1st Qt14.9725.7633.154.80 Median13.7724.2929.242.91 3rd Qt12.8221.4526.211.65 Low9.0314.3918.27-1.94 Wedge Capital Mgmt w Net Ret13.2923.3030.683.60 Rank70583637 R Mid Cap V 1 Net Ret12.2424.7629.401.01 Rank80364779 Item # 4 86 Attachment number 2 Page 91 of 200 City of Clearwater Midcap Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 70% 60% 50% 40% w 1 30% 1 w 20% 10% 0% -10% -20% -30% w -40% 1 -50% -60% 201020092008 High32.4163.14-26.24 1st Qt25.7645.34-31.89 Median24.2934.08-34.45 3rd Qt21.4528.00-37.68 Low14.3916.38-51.14 Wedge Capital Mgmt w Net Ret23.3038.51-34.89 Rank583359 R Mid Cap V 1 Net Ret24.7634.20-38.45 Rank364781 Item # 4 87 Attachment number 2 Page 92 of 200 City of Clearwater December 31, 2010 Item # 4 88 Attachment number 2 Page 93 of 200 City of Clearwater Return vs Risk Total Returns of Midcap Value Portfolios 3 Years Ending 12/31/10 12.0 10.2 8.4 6.6 4.8 w Median 3.0 Return 1.2 1 -0.5 -2.3 -4.2 -6.0 16.018.621.223.826.429.031.634.236.839.442.0 Historical Standard Deviation of Return Annualized ReturnStandard Deviation ValueRankValueRank w Wedge Capital Mgmt3.603729.9972 1 R Mid Cap V 1.017930.5688 Median2.9128.58 Item # 4 89 Attachment number 2 Page 94 of 200 City of Clearwater Equity Summary Statistics Wedge Capital Mgmt Period Ending 12/10 PortfolioR Mid Cap V Total Number Of Securities37541 Equity Market Value39,659,956 Average Capitalization $(000)6,661,8627,756,883 Median Capitalization $(000)3,604,0613,816,222 Equity Segment Yield2.261.96 Equity Segment P/E - Average19.1721.35 Equity Segment P/E - Median15.4916.51 Equity Segment Beta1.051.18 Price/Book Ratio1.781.51 Debt/Equity Ratio49.6663.78 Five Year Earnings Growth-0.07-1.88 Ten Largest Holdings Market Value% of PortfolioQuarterly Ret Computer Sciences Co1,683,4744.258.27 Sonoco Prods Co 1,609,4264.061.57 Donnelley R R & Sons1,582,0483.994.51 Simon Ppty Group Inc1,523,4903.858.13 Duke Realty Corp. 1,510,6013.819.06 Dover Corp 1,508,0103.8112.50 Carlisle Corp 1,458,4583.6833.32 Sara Lee Corp 1,390,2943.5131.37 Lincoln Natl Corp In1,385,2163.5016.31 Allstate Corp 1,342,1483.391.74 Ten Best PerformersTen Worst Performers Quarterly RetQuarterly Ret Beckman Coulter Inc 54.74Sonoco Prods Co 1.57 United Rentals Inc 53.30Pinnacle West Cap Co1.72 Borg-Warner Automoti37.51Allstate Corp 1.74 Carlisle Corp 33.32Comtech Telecommunic2.22 Sara Lee Corp 31.37Bemis Inc 3.65 Steelcase Inc 28.00Donnelley R R & Sons4.51 Convergys Corp 26.03Aptargroup Inc 4.58 Qep Res Inc 20.54Arch Cap Group Ltd 5.07 Werner Enterprises I19.00Energen Corp 5.85 Endurance Specialty 16.39Bank Hawaii Corp 6.17 Item # 4 90 Attachment number 2 Page 95 of 200 City of Clearwater Equity Contribution to Return Wedge Capital Mgmt Period Ending 12/10 PortfolioR Mid Cap V Total Number Of Securities37541 Equity Market Value39,659,956 Average Capitalization $(000)6,661,8627,756,883 Median Capitalization $(000)3,604,0613,816,222 Equity Segment Yield2.261.96 Equity Segment P/E - Average19.1721.35 Equity Segment P/E - Median15.4916.51 Equity Segment Beta1.051.18 Price/Book Ratio1.781.51 Debt/Equity Ratio49.6663.78 Five Year Earnings Growth-0.07-1.88 Ten Best Contributors Market Value% of PortfolioQuarterly Ret Beckman Coulter Inc 1,243,0253.1454.74 Borg-Warner Automoti1,316,9523.3237.51 Carlisle Corp 1,458,4583.6833.32 Sara Lee Corp 1,390,2943.5131.37 United Rentals Inc 802,5972.0353.30 Steelcase Inc 1,085,5392.7428.00 Convergys Corp 941,6552.3826.03 Lincoln Natl Corp In1,385,2163.5016.31 Werner Enterprises I1,087,3992.7419.00 Transdigm Group Inc 1,222,3703.0916.05 Ten Worst Contributors Market Value% of PortfolioQuarterly Ret Comtech Telecommunic524,0971.322.22 Pinnacle West Cap Co1,222,7753.091.72 Allstate Corp 1,342,1483.391.74 Sonoco Prods Co 1,609,4264.061.57 Teradata Corp Del 399,2521.016.74 Aptargroup Inc 803,9332.034.58 Wyndham Worldwide Co392,4760.999.52 Phh Corp 391,2350.999.92 Arch Cap Group Ltd 792,4502.005.07 Bemis Inc 1,172,4942.963.65 Item # 4 91 Attachment number 2 Page 96 of 200 City of Clearwater Equity Sector Attribution Analysis Wedge Capital Mgmt Quarter Ending 12/10 WeightReturnSelection GICS SectorsPortfolioIndexPortfolioIndexStockSectorTotal Energy1.9810.2920.5424.01-0.07-0.98-1.05 Materials9.925.172.9416.08-1.300.18-1.12 Industrials21.3210.2422.1615.981.320.421.73 Consumer Discretionary9.7910.7917.1512.900.42-0.010.41 Consumer Staples5.426.9320.698.860.640.050.69 Health Care3.155.2554.7413.291.31-0.021.28 Financials25.8629.879.0310.13-0.290.08-0.20 Information Technology12.316.4211.2511.61-0.04-0.04-0.08 Telecom. Services0.002.1217.900.00-0.12-0.12 Utilities10.2512.924.603.350.130.240.37 100.00100.0014.1412.232.11-0.191.92 Index - R Mid Cap V Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfol Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] Trading Effect -0.21% [ Actual Return 13.93% ] - [ Buy Hold Return 14.14% ] Item # 4 92 Attachment number 2 Page 97 of 200 City of Clearwater Equity Sector Attribution Chart Wedge Capital Mgmt Quarter Ending 12/10 % Allocation% Return% Variance 1.9820.54 Energy -1.05 10.2924.01 9.922.94 Materials -1.12 5.1716.08 21.3222.16 Industrials 1.73 10.2415.98 9.7917.15 0.41 Con. Discretionary 10.7912.90 5.4220.69 0.69 Consumer Staples 6.938.86 3.1554.74 1.28 Health Care 5.2513.29 25.869.03 -0.20 Financials 29.8710.13 -0.08 12.3111.25 Infomation Tech. 6.4211.61 -0.12 0.00 Telecom. Services 2.1217.90 0.37 10.254.60 Utilities 12.923.35 Wedge Capital MgmtR Mid Cap V Item # 4 93 Attachment number 2 Page 98 of 200 City of Clearwater Small Cap Equity Comp as of 12/31/10 Portfolio Performance (%) 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 QtrYTD1 Year3 Year5 Year10 YearIncept 8/31/03 Small Cap Equity CompR2000 Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 8/31/03 Small Cap Equity Comp16.5329.2729.271.935.137.83 R2000 16.2526.8526.852.224.477.77 Asset Growth ($000) Beginning Market Value36,53470,13870,13876,71756,65429,988 Net Contributions & Withdrawals-2-39,003-39,003-39,003-39,003-39,003 Gain/Loss + Income6,03911,43511,4354,85624,91951,585 Ending Market Value42,57142,57142,57142,57142,57142,571 Top Equity HoldingsGICS Sector Allocation GICS Sector% Port% Port Cepheid Inc Health Care2.17Energy3.74 Gentex Corp Consumer Discretionary2.01Materials3.41 National Instrs CorpInformation Technology1.97Industrials18.45 Rollins Inc Industrials1.88Consumer Discretionary13.25 Lkq Corp Consumer Discretionary1.87Consumer Staples4.12 Chemed Corp New Health Care1.72Health Care17.15 Ultimate Software GrInformation Technology1.63Financials14.15 Power Integrations IInformation Technology1.48Information Technology25.35 Neogen Corp Health Care1.38Telecom Services0.00 Ansys Inc Information Technology1.36Utilities0.38 Item # 4 Holdings and allocations only include SMA accounts. 94 Attachment number 2 Page 99 of 200 City of Clearwater Small Cap Equity Comp as of 12/31/10 Asset Allocation ($000) Cash & Equiv $1,151 2.70% Domestic Equity $41,419 97.30% Risk/Return Analysis Periods from 8/03 to 12/10 Alpha0.18 Beta0.91 R-Squared0.95 8.0 S 1 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 T 2.0 0.02.04.06.08.010.012.014.016.018.020.022.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Small Cap Equity Comp 7.83 20.11 0.28 -0.02 S R2000 7.77 20.68 0.26 1 91-Day Treasury Bill 2.30 0.57 0.00 T Item # 4 Holdings and allocations only include SMA accounts. 95 Attachment number 2 Page 100 of 200 City of Clearwater Small Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/10 45% 40% 35% S 30% S 1 1 25% 20% S 1 15% 10% S 1 5% S S 1 1 S 1 S 1 0% -5% LastLastLast 2Last 3Last 4Last 5Last 6Last 7 QtrYearYearsYearsYearsYearsYearsYears High19.1932.7840.268.467.159.999.8410.36 1st Qt17.1428.8032.376.274.287.177.489.41 6.177.91 Median15.5926.7328.493.692.915.70 3rd Qt14.4424.0725.872.091.244.685.157.27 Low12.2617.6921.63-0.85-1.002.463.625.37 Small Cap Equity Comp S Net Ret16.5329.2731.371.932.275.135.476.87 6378 Rank292134806159 R2000 1 Net Ret16.2526.8527.022.221.274.474.496.36 9091 Rank354865727479 Item # 4 96 Attachment number 2 Page 101 of 200 City of Clearwater Small Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 60% 50% 40% S 30% S 1 1 20% 11 S S 10% S 1 S 0% 1 -10% -20% -30% 1 -40% S -50% 2010200920082007200620052004 High32.7852.91-22.1511.2322.9412.4725.69 1st Qt28.8037.35-29.403.5219.6310.4922.55 20.82 Median26.7330.06-33.10-0.1717.308.84 3rd Qt24.0726.61-36.70-3.1215.596.1318.65 Low17.6918.82-44.05-8.1212.803.5015.58 Small Cap Equity Comp S Net Ret29.2733.51-38.633.2717.407.2115.69 93 Rank213884284871 R2000 1 Net Ret26.8527.19-33.80-1.5518.354.5618.32 79 Rank486859593888 Item # 4 97 Attachment number 2 Page 102 of 200 City of Clearwater Return vs Risk Total Returns of Small Neutral Portfolios 3 Years Ending 12/31/10 10.9 9.5 8.2 6.8 5.4 4.0 Median Return 2.6 1 S 1.1 -0.2 -1.6 -3.0 18.020.222.424.626.829.031.233.435.637.840.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank S Small Cap Equity Comp1.938028.2339 1 R2000 2.227229.2958 Median3.6929.06 5 Years Ending 12/31/10 9.9 9.0 8.2 7.3 6.4 Median 5.5 Return S 4.6 1 3.7 2.8 1.9 1.0 16.017.519.020.522.023.525.026.528.029.531.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank S Small Cap Equity Comp5.135922.5040 1 R2000 4.477923.7462 Median5.7023.19 Item # 4 98 Attachment number 2 Page 103 of 200 City of Clearwater Riverbridge Partners as of 12/31/10 Portfolio Performance (%) 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 QtrYTD1 Year3 Year5 Year10 YearIncept 9/30/10 Riverbridge PartnersR2000G Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 9/30/10 Riverbridge Partners16.3916.39 R2000G 17.1117.11 Asset Growth ($000) Beginning Market Value16,87616,876 Net Contributions & Withdrawals00 Gain/Loss + Income2,7652,765 Ending Market Value19,64219,642 Top Equity HoldingsGICS Sector Allocation GICS Sector% Port% Port Cepheid Inc Health Care4.73Energy0.00 Gentex Corp Consumer Discretionary4.37Materials0.67 Rollins Inc Industrials4.10Industrials17.36 Chemed Corp New Health Care3.74Consumer Discretionary13.04 Ultimate Software GrInformation Technology3.54Consumer Staples3.31 National Instrs CorpInformation Technology3.52Health Care26.79 Neogen Corp Health Care3.01Financials2.85 Mednax Inc Health Care2.93Information Technology35.98 Semtech Corp Information Technology2.90Telecom Services0.00 Ritchie Bros AuctionIndustrials2.87Utilities0.00 Item # 4 99 Attachment number 2 Page 104 of 200 City of Clearwater Riverbridge Partners as of 12/31/10 Asset Allocation ($000) Cash & Equiv $593 3.02% Domestic Equity $19,049 96.98% Risk/Return Analysis (Number of returns < 12) Periods from 9/10 to 12/10 AlphaN/A BetaN/A R-SquaredN/A 18.0 1 R 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 T -2.0 -1.00.01.02.03.04.05.06.07.08.09.010.011.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Riverbridge Partners 16.39 10.44 1.57 R R2000G 17.11 6.52 2.62 1 91-Day Treasury Bill 0.04 0.03 0.00 T Item # 4 100 Attachment number 2 Page 105 of 200 City of Clearwater Small Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/10 26% 25% 24% 23% 22% 21% 20% 19% 18% 17% 1 R 16% 15% 14% 13% 12% Last Qtr High24.76 1st Qt17.75 Median16.49 3rd Qt15.11 Low12.72 Riverbridge Partners R Return16.39 Rank51 R2000G 1 Return17.11 Rank38 Item # 4 101 Attachment number 2 Page 106 of 200 City of Clearwater Equity Summary Statistics Riverbridge Partners Period Ending 12/10 PortfolioR2000G Total Number Of Securities541,269 Equity Market Value19,048,865 Average Capitalization $(000)1,631,2291,381,587 Median Capitalization $(000)893,426563,145 Equity Segment Yield0.380.47 Equity Segment P/E - Average35.1240.18 Equity Segment P/E - Median26.9116.43 Equity Segment Beta1.011.27 Price/Book Ratio3.413.41 Debt/Equity Ratio12.3918.36 Five Year Earnings Growth4.733.75 Ten Largest Holdings Market Value% of PortfolioQuarterly Ret Cepheid Inc 900,1044.7321.59 Gentex Corp 831,6714.3752.36 Rollins Inc 780,4614.1027.14 Chemed Corp New 712,2653.7411.74 Ultimate Software Gr674,4983.5425.85 National Instrs Corp670,9333.5215.67 Neogen Corp 572,9843.0121.21 Mednax Inc 558,1712.9326.25 Semtech Corp 553,3222.9012.13 Ritchie Bros Auction546,4232.8711.57 Ten Best PerformersTen Worst Performers Quarterly RetQuarterly Ret Dynamex Inc 62.36Enernoc Inc -23.88 Gentex Corp 52.36Capella Education Co-14.22 Faro Technologies In50.57Grand Canyon Ed Inc -10.67 Financial Engines In49.32Napco Sec Sys Inc -8.21 Constant Contact Inc44.61Echo Global Logistic-5.72 Ipc the Hospitalist 42.79Landec Corp -3.70 Resources Connection35.42Innerworkings Inc -0.30 Cabot Microelectroni28.81Angiodynamics Inc 0.85 Mobile Mini 28.36Allscripts Healthcar4.33 Rollins Inc 27.14Concur Technologies 5.04 Item # 4 102 Attachment number 2 Page 107 of 200 City of Clearwater Equity Contribution to Return Riverbridge Partners Period Ending 12/10 PortfolioRussell 2000 Growth Total Number Of Securities541,269 Equity Market Value19,048,865 Average Capitalization $(000)1,631,2291,381,587 Median Capitalization $(000)893,426563,145 Equity Segment Yield0.380.47 Equity Segment P/E - Average35.1240.18 Equity Segment P/E - Median26.9116.43 Equity Segment Beta1.011.27 Price/Book Ratio3.413.41 Debt/Equity Ratio12.3918.36 Five Year Earnings Growth4.733.75 Ten Best Contributors Market Value% of PortfolioQuarterly Ret Gentex Corp 831,6714.3752.36 Rollins Inc 780,4614.1027.14 Cepheid Inc 900,1044.7321.59 Ultimate Software Gr674,4983.5425.85 Mednax Inc 558,1712.9326.25 Resources Connection374,7741.9735.42 Ipc the Hospitalist 308,5691.6242.79 Faro Technologies In242,6881.2750.57 Neogen Corp 572,9843.0121.21 Power Integrations I442,3432.3226.42 Ten Worst Contributors Market Value% of PortfolioQuarterly Ret Enernoc Inc 187,5740.98-23.88 Capella Education Co262,3251.38-14.22 Grand Canyon Ed Inc 260,8211.37-10.67 Echo Global Logistic82,3900.43-5.72 Landec Corp 127,1350.67-3.70 Napco Sec Sys Inc 21,8110.11-8.21 Innerworkings Inc 199,9061.05-0.30 Angiodynamics Inc 363,6541.910.85 Usana Inc 123,8330.657.66 Financial Engines In20,5040.1149.32 Item # 4 103 Attachment number 2 Page 108 of 200 City of Clearwater Equity Sector Attribution Analysis Riverbridge Partners Quarter Ending 12/10 WeightReturnSelection GICS SectorsPortfolioIndexPortfolioIndexStockSectorTotal Energy0.004.1835.650.00-0.78-0.78 Materials1.694.898.0416.84-0.150.00-0.14 Industrials16.0617.1918.2619.27-0.16-0.03-0.19 Consumer Discretionary11.3417.3420.2814.390.670.150.82 Consumer Staples3.523.1010.0714.81-0.17-0.01-0.18 Health Care26.7619.5815.3112.420.77-0.330.45 Financials2.754.9716.3216.41-0.000.010.01 Information Technology37.8927.3818.9318.100.320.120.44 Telecom. Services0.001.3013.230.000.050.05 Utilities0.000.076.270.000.010.01 100.00100.0017.4416.961.28-0.800.48 Index - R2000G Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfol Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] Trading Effect -0.35% [ Actual Return 17.09% ] - [ Buy Hold Return 17.44% ] Item # 4 104 Attachment number 2 Page 109 of 200 City of Clearwater Equity Sector Attribution Chart Riverbridge Partners Quarter Ending 12/10 % Allocation% Return% Variance 0.00 Energy -0.78 4.1835.65 1.698.04 Materials -0.14 4.8916.84 16.0618.26 Industrials -0.19 17.1919.27 11.3420.28 0.82 Con. Discretionary 17.3414.39 3.5210.07 -0.18 Consumer Staples 3.1014.81 26.7615.31 0.45 Health Care 19.5812.42 2.7516.32 0.01 Financials 4.9716.41 0.44 37.8918.93 Infomation Tech. 27.3818.10 0.05 0.00 Telecom. Services 1.3013.23 0.01 0.00 Utilities 0.076.27 Riverbridge PartnersR2000G Item # 4 105 Attachment number 2 Page 110 of 200 City of Clearwater Atlanta Capital Mgmt as of 12/31/10 Portfolio Performance (%) 28.0 26.0 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 QtrYTD1 Year3 Year5 Year10 YearIncept 8/31/03 Atlanta Capital MgmtR2000V Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 8/31/03 Atlanta Capital Mgmt14.7025.9825.988.759.8311.08 R2000V 15.3624.5124.512.193.527.93 Asset Growth ($000) Beginning Market Value10,03818,63218,63218,25028,47914,990 Net Contributions & Withdrawals0-10,000-10,000-10,000-10,000-10,000 Gain/Loss + Income1,4752,8822,8823,264-6,9666,524 Ending Market Value11,51411,51411,51411,51411,51411,514 Top Equity HoldingsGICS Sector Allocation GICS Sector% Port% Port Morningstar Inc Consumer Discretionary3.91Energy3.44 Dril-Quip Inc Energy3.44Materials3.50 Forest City EnterpriFinancials3.33Industrials23.38 Affiliated Managers Financials3.30Consumer Discretionary17.35 Kirby Expl Co. Industrials3.02Consumer Staples6.52 Bio Rad Labs Inc Health Care2.83Health Care9.87 Henry Jack & Assoc IInformation Technology2.49Financials17.86 Lkq Corp Consumer Discretionary2.47Information Technology18.07 Blackbaud Inc Information Technology2.42Telecom Services0.00 Aptargroup Inc Materials2.36Utilities0.00 Item # 4 106 Attachment number 2 Page 111 of 200 City of Clearwater Atlanta Capital Mgmt as of 12/31/10 Asset Allocation ($000) Cash & Equiv $382 3.31% Domestic Equity $11,132 96.69% Risk/Return Analysis Periods from 8/03 to 12/10 Alpha1.15 Beta0.70 R-Squared0.92 12.0 11.0 t 10.0 9.0 8.0 1 7.0 6.0 5.0 4.0 3.0 T 2.0 0.02.04.06.08.010.012.014.016.018.020.022.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Atlanta Capital Mgmt 11.08 17.71 0.50 0.24 t R2000V 7.93 20.82 0.27 1 91-Day Treasury Bill 2.30 0.57 0.00 T Item # 4 107 Attachment number 2 Page 112 of 200 City of Clearwater Small Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/10 40% 35% 30% t t 25% 1 1 20% 15% 1 t 10%t t t t t 1 5% 1 1 1 0% 1 -5% LastLastLast 2Last 3Last 4Last 5Last 6Last 7 QtrYearYearsYearsYearsYearsYearsYears High19.2033.4436.948.996.619.489.0110.91 1st Qt17.6430.9032.257.134.717.747.489.23 6.088.39 Median15.6128.0827.543.531.525.61 3rd Qt14.2824.1524.532.36-0.034.034.517.16 Low12.6921.4716.81-0.98-2.511.373.005.90 Atlanta Capital Mgmt t Net Ret14.7025.9826.408.758.289.839.2210.73 110 Rank686562511 R2000V 1 Net Ret15.3624.5122.522.19-0.953.523.716.18 9289 Rank587191789085 Item # 4 108 Attachment number 2 Page 113 of 200 City of Clearwater Small Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 60% 50% 40% 30% t t 1 1 1 20% 1 t t 10% t t 1 0% -10% 1 -20% t -30% 1 -40% 2010200920082007200620052004 High33.4453.30-23.217.2229.9811.5528.23 1st Qt30.9035.72-28.67-1.4821.788.2726.31 23.25 Median28.0826.24-30.43-5.1019.377.05 3rd Qt24.1523.62-33.57-9.6017.064.7619.26 Low21.4718.36-38.47-11.8311.452.3317.23 Atlanta Capital Mgmt t Net Ret25.9826.83-19.526.9116.226.2320.24 66 Rank6547168058 R2000V 1 Net Ret24.5120.57-28.92-9.7723.484.7022.25 54 Rank719328761275 Item # 4 109 Attachment number 2 Page 114 of 200 City of Clearwater December 31, 2010 Item # 4 110 Attachment number 2 Page 115 of 200 City of Clearwater Return vs Risk Total Returns of Small Value Portfolios 3 Years Ending 12/31/10 12.0 10.2 t 8.4 6.6 4.8 Median 3.0 Return 1 1.2 -0.5 -2.3 -4.2 -6.0 18.020.422.825.227.630.032.434.837.239.642.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank t Atlanta Capital Mgmt8.75522.391 1 R2000V 2.197829.8447 Median3.5330.04 5 Years Ending 12/31/10 11.0 10.0 t 9.0 8.0 7.0 6.0 Median Return 5.0 4.0 1 3.0 2.0 1.0 16.017.819.621.423.225.026.828.630.432.234.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank t Atlanta Capital Mgmt9.83117.831 1 R2000V 3.528524.3141 Median5.6124.76 Item # 4 111 Attachment number 2 Page 116 of 200 City of Clearwater Equity Summary Statistics Atlanta Capital Mgmt Period Ending 12/10 PortfolioR2000V Total Number Of Securities641,296 Equity Market Value11,132,152 Average Capitalization $(000)2,036,3141,128,565 Median Capitalization $(000)1,613,617475,760 Equity Segment Yield0.861.79 Equity Segment P/E - Average25.6037.66 Equity Segment P/E - Median23.0114.74 Equity Segment Beta1.091.24 Price/Book Ratio2.831.36 Debt/Equity Ratio20.4245.21 Five Year Earnings Growth5.22-2.48 Ten Largest Holdings Market Value% of PortfolioQuarterly Ret Morningstar Inc 434,7253.9119.23 Dril-Quip Inc 383,1603.4425.13 Forest City Enterpri370,0173.3330.09 Affiliated Managers 367,1143.3027.19 Kirby Expl Co. 336,1023.029.96 Bio Rad Labs Inc 314,6662.8314.74 Henry Jack & Assoc I276,9252.4914.71 Lkq Corp 274,9122.479.23 Blackbaud Inc 269,6192.428.21 Aptargroup Inc 262,5862.364.58 Ten Best PerformersTen Worst Performers Quarterly RetQuarterly Ret Daktronics Inc 62.12Fair Isaac Corp -5.15 Hibbett Sports Inc 47.90Landauer Inc -3.45 Pinnacle Finl Partne47.77Jones Lang Lasalle I-2.61 Rofin Sinar Technolo39.64Caseys Gen Stores 2.16 Carlisle Corp 33.32Knight Transn Inc 2.46 Acuity Brands Inc 30.70Westamerica Bancorp 2.52 Forest City Enterpri30.09Manhattan Assocs Inc4.05 Diamond Foods Inc 29.88Owens & Minor Inc Ne4.06 Sally Beauty Hldgs I29.73Aptargroup Inc 4.58 Hittite Microwave Co28.10Choice Hotels Intl I5.47 Item # 4 112 Attachment number 2 Page 117 of 200 City of Clearwater Equity Contribution to Return Atlanta Capital Mgmt Period Ending 12/10 PortfolioR2000V Total Number Of Securities641,296 Equity Market Value11,132,152 Average Capitalization $(000)2,036,3141,128,565 Median Capitalization $(000)1,613,617475,760 Equity Segment Yield0.861.79 Equity Segment P/E - Average25.6037.66 Equity Segment P/E - Median23.0114.74 Equity Segment Beta1.091.24 Price/Book Ratio2.831.36 Debt/Equity Ratio20.4245.21 Five Year Earnings Growth5.22-2.48 Ten Best Contributors Market Value% of PortfolioQuarterly Ret Forest City Enterpri370,0173.3330.09 Affiliated Managers 367,1143.3027.19 Dril-Quip Inc 383,1603.4425.13 Daktronics Inc 146,4641.3262.12 Morningstar Inc 434,7253.9119.23 Hibbett Sports Inc 146,4931.3247.90 Pinnacle Finl Partne141,2321.2747.77 Rofin Sinar Technolo157,9211.4239.64 Acuity Brands Inc 201,8451.8130.70 Diamond Foods Inc 202,0841.8229.88 Ten Worst Contributors Market Value% of PortfolioQuarterly Ret Fair Isaac Corp 182,2861.64-5.15 Jones Lang Lasalle I226,5842.04-2.61 Landauer Inc 95,9520.86-3.45 McGrath Rentcorp 13,1100.1210.45 Caseys Gen Stores 116,4771.052.16 Knight Transn Inc 140,6001.262.46 Westamerica Bancorp 144,7771.302.52 Pss World Med Inc 111,8701.015.71 Owens & Minor Inc Ne161,8651.454.06 Ruddick Corp 103,5200.936.59 Item # 4 113 Attachment number 2 Page 118 of 200 City of Clearwater Equity Sector Attribution Analysis Atlanta Capital Mgmt Quarter Ending 12/10 WeightReturnSelection GICS SectorsPortfolioIndexPortfolioIndexStockSectorTotal Energy3.167.0125.1326.22-0.03-0.42-0.45 Materials3.985.756.2225.33-0.76-0.18-0.94 Industrials24.0013.7413.6920.69-1.680.55-1.13 Consumer Discretionary18.069.6215.1416.82-0.300.13-0.18 Consumer Staples4.483.0619.196.030.59-0.130.46 Health Care9.265.988.2410.41-0.20-0.16-0.36 Financials18.2337.8916.5412.560.720.541.26 Information Technology18.839.5716.0915.530.110.020.13 Telecom. Services0.000.6512.630.000.020.02 Utilities0.006.736.140.000.620.62 100.00100.0014.7315.30-1.560.98-0.58 Index - R2000V Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfol Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] Trading Effect 0.46% [ Actual Return 15.19% ] - [ Buy Hold Return 14.73% ] Item # 4 114 Attachment number 2 Page 119 of 200 City of Clearwater Equity Sector Attribution Chart Atlanta Capital Mgmt Quarter Ending 12/10 % Allocation% Return% Variance 3.1625.13 Energy -0.45 7.0126.22 3.986.22 Materials -0.94 5.7525.33 24.0013.69 Industrials -1.13 13.7420.69 18.0615.14 -0.18 Con. Discretionary 9.6216.82 4.4819.19 0.46 Consumer Staples 3.066.03 9.268.24 -0.36 Health Care 5.9810.41 18.2316.54 1.26 Financials 37.8912.56 0.13 18.8316.09 Infomation Tech. 9.5715.53 0.02 0.00 Telecom. Services 0.6512.63 0.62 0.00 Utilities 6.736.14 Atlanta Capital MgmtR2000V Item # 4 115 Attachment number 2 Page 120 of 200 City of Clearwater Systematic Financial Mgt as of 12/31/10 Portfolio Performance (%) 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 QtrYTD1 Year3 Year5 Year10 YearIncept 8/31/03 Systematic Financial MgtR2000V Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 8/31/03 Systematic Financial Mgt18.7435.5035.502.935.388.03 R2000V 15.3624.5124.512.193.527.93 Asset Growth ($000) Beginning Market Value9,61414,06314,06317,47428,18015,001 Net Contributions & Withdrawals0-6,000-6,000-6,000-6,000-6,000 Gain/Loss + Income1,8013,3533,353-59-10,7652,414 Ending Market Value11,41611,41611,41611,41611,41611,416 Top Equity HoldingsGICS Sector Allocation GICS Sector% Port% Port Cbl & Assoc Pptys InFinancials2.79Energy10.38 Dupont Fabros TechnoFinancials2.39Materials7.99 Webster Finl Corp CoFinancials2.35Industrials15.42 Fpic Ins Group Inc Financials2.29Consumer Discretionary9.54 Wabash Natl Corp Industrials2.15Consumer Staples3.11 Polyone Corp Materials2.11Health Care8.01 International Coal GEnergy2.01Financials29.62 Health Mgmt Assoc InHealth Care1.99Information Technology14.52 Complete Production Energy1.95Telecom Services0.00 Carrizo Oil & Co IncEnergy1.78Utilities1.42 Item # 4 116 Attachment number 2 Page 121 of 200 City of Clearwater Systematic Financial Mgt as of 12/31/10 Asset Allocation ($000) Cash & Equiv $177 1.55% Domestic Equity $11,238 98.45% Risk/Return Analysis Periods from 8/03 to 12/10 Alpha0.22 Beta0.98 R-Squared0.82 8.5 8.0 s 1 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 T 2.0 0.02.04.06.08.010.012.014.016.018.020.022.024.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Systematic Financial Mgt 8.03 21.83 0.26 0.03 s R2000V 7.93 20.82 0.27 1 91-Day Treasury Bill 2.30 0.57 0.00 T Item # 4 117 Attachment number 2 Page 122 of 200 City of Clearwater Small Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/10 40% 35% s s 30% 25% 1 1 20% s 15% 1 10% s 1 s 5% s 1 1 s s 1 0% 1 -5% LastLastLast 2Last 3Last 4Last 5Last 6Last 7 QtrYearYearsYearsYearsYearsYearsYears High19.2033.4436.948.996.619.489.0110.91 1st Qt17.6430.9032.257.134.717.747.489.23 6.088.39 Median15.6128.0827.543.531.525.61 3rd Qt14.2824.1524.532.36-0.034.034.517.16 Low12.6921.4716.81-0.98-2.511.373.005.90 Systematic Financial Mgt s Net Ret18.7435.5035.612.932.315.385.866.64 5689 Rank1619634554 R2000V 1 Net Ret15.3624.5122.522.19-0.953.523.716.18 9289 Rank587191789085 Item # 4 118 Attachment number 2 Page 123 of 200 City of Clearwater Small Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 60% 50% 40% s s 30% 1 1 1 20% 1 s 10% s s 1 0% s -10% 1 -20% -30% 1 -40% s -50% 2010200920082007200620052004 High33.4453.30-23.217.2229.9811.5528.23 1st Qt30.9035.72-28.67-1.4821.788.2726.31 23.25 Median28.0826.24-30.43-5.1019.377.05 3rd Qt24.1523.62-33.57-9.6017.064.7619.26 Low21.4718.36-38.47-11.8311.452.3317.23 Systematic Financial Mgt s Net Ret35.5035.72-40.710.4918.618.2711.42 100 Rank12598216327 R2000V 1 Net Ret24.5120.57-28.92-9.7723.484.7022.25 54 Rank719328761275 Item # 4 119 Attachment number 2 Page 124 of 200 City of Clearwater December 31, 2010 Item # 4 120 Attachment number 2 Page 125 of 200 City of Clearwater Return vs Risk Total Returns of Small Value Portfolios 3 Years Ending 12/31/10 11.0 9.5 8.0 6.5 5.0 Median 3.5 s Return 1 2.0 0.5 -1.0 -2.5 -4.0 18.020.422.825.227.630.032.434.837.239.642.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank s Systematic Financial Mgt2.936332.6783 1 R2000V 2.197829.8447 Median3.5330.04 5 Years Ending 12/31/10 9.9 9.0 8.2 7.3 6.4 Median 5.5 s Return 4.6 3.7 1 2.8 1.9 1.0 16.017.819.621.423.225.026.828.630.432.234.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank s Systematic Financial Mgt5.385426.2676 1 R2000V 3.528524.3141 Median5.6124.76 Item # 4 121 Attachment number 2 Page 126 of 200 City of Clearwater Equity Summary Statistics Systematic Financial Mgt Period Ending 12/10 PortfolioR2000V Total Number Of Securities1081,296 Equity Market Value11,238,381 Average Capitalization $(000)1,421,4341,128,565 Median Capitalization $(000)1,153,124475,760 Equity Segment Yield0.731.79 Equity Segment P/E - Average40.4337.66 Equity Segment P/E - Median13.7714.74 Equity Segment Beta1.621.24 Price/Book Ratio1.821.36 Debt/Equity Ratio42.3845.21 Five Year Earnings Growth-7.25-2.48 Ten Largest Holdings Market Value% of PortfolioQuarterly Ret Cbl & Assoc Pptys In313,2502.7935.52 Dupont Fabros Techno268,0022.39-14.94 Webster Finl Corp Co263,9802.3512.25 Fpic Ins Group Inc 256,8722.295.33 Wabash Natl Corp 241,7402.1546.48 Polyone Corp 237,3102.113.31 International Coal G225,2342.0145.49 Health Mgmt Assoc In223,2361.9924.54 Complete Production 218,6701.9544.50 Carrizo Oil & Co Inc200,0421.7844.07 Ten Best PerformersTen Worst Performers Quarterly RetQuarterly Ret Kodiak Oil & Gas Cor94.69Cole Kenneth Prodtns-25.07 Axcelis Technologies79.27Dupont Fabros Techno-14.94 Noranda Alum Hldg Co77.62Black Hills Pwr & Lt-2.68 Lo-Jack Corp 69.11Smith A O Corp 'b' -0.96 FSI Int Inc 66.17Medicines Co -0.49 Sfn Group Inc 62.40Magellan Health Svcs0.08 Abraxas Pete Corp 60.92Health Net Inc. 0.37 Rosetta Resources In60.24Radian Group Inc 3.23 Entegris Inc 59.96Polyone Corp 3.31 United Rentals Inc 53.30Fpic Ins Group Inc 5.33 Item # 4 122 Attachment number 2 Page 127 of 200 City of Clearwater Equity Contribution to Return Systematic Financial Mgt Period Ending 12/10 PortfolioR2000V Total Number Of Securities1081,296 Equity Market Value11,238,381 Average Capitalization $(000)1,421,4341,128,565 Median Capitalization $(000)1,153,124475,760 Equity Segment Yield0.731.79 Equity Segment P/E - Average40.4337.66 Equity Segment P/E - Median13.7714.74 Equity Segment Beta1.621.24 Price/Book Ratio1.821.36 Debt/Equity Ratio42.3845.21 Five Year Earnings Growth-7.25-2.48 Ten Best Contributors Market Value% of PortfolioQuarterly Ret Wabash Natl Corp 241,7402.1546.48 Cbl & Assoc Pptys In313,2502.7935.52 International Coal G225,2342.0145.49 Complete Production 218,6701.9544.50 Carrizo Oil & Co Inc200,0421.7844.07 Noranda Alum Hldg Co111,6900.9977.62 Sfn Group Inc 128,8321.1562.40 United Rentals Inc 129,6751.1553.30 Dana Holding Corp 163,4951.4639.69 Rosetta Resources In104,4510.9360.24 Ten Worst Contributors Market Value% of PortfolioQuarterly Ret Dupont Fabros Techno268,0022.39-14.94 Cole Kenneth Prodtns28,7270.26-25.07 Black Hills Pwr & Lt159,0001.42-2.68 Smith A O Corp 'b' 114,2401.02-0.96 Medicines Co 60,7590.54-0.49 Campus Crest Cmntys 119,1701.06 Magellan Health Svcs127,6561.140.08 Health Net Inc. 158,2821.410.37 Dime Cmnty Bancorp I40,8520.366.31 Radian Group Inc 81,5070.733.23 Item # 4 123 Attachment number 2 Page 128 of 200 City of Clearwater Equity Sector Attribution Analysis Systematic Financial Mgt Quarter Ending 12/10 WeightReturnSelection GICS SectorsPortfolioIndexPortfolioIndexStockSectorTotal Energy7.617.0146.4326.221.540.071.61 Materials9.775.7517.4325.33-0.770.40-0.37 Industrials13.3913.7425.2020.690.60-0.020.59 Consumer Discretionary10.599.6212.8216.82-0.420.01-0.41 Consumer Staples4.133.069.196.030.13-0.100.03 Health Care5.965.9812.7210.410.140.000.14 Financials31.6237.8911.2312.56-0.420.17-0.25 Information Technology14.469.5722.5115.531.010.011.02 Telecom. Services0.650.6520.7512.630.050.000.05 Utilities1.816.733.276.14-0.050.450.40 100.00100.0018.1115.301.801.002.80 Index - R2000V Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfol Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] Trading Effect 1.08% [ Actual Return 19.19% ] - [ Buy Hold Return 18.11% ] Item # 4 124 Attachment number 2 Page 129 of 200 City of Clearwater Equity Sector Attribution Chart Systematic Financial Mgt Quarter Ending 12/10 % Allocation% Return% Variance 7.6146.43 Energy 1.61 7.0126.22 9.7717.43 Materials -0.37 5.7525.33 13.3925.20 Industrials 0.59 13.7420.69 10.5912.82 -0.41 Con. Discretionary 9.6216.82 4.139.19 0.03 Consumer Staples 3.066.03 5.9612.72 0.14 Health Care 5.9810.41 31.6211.23 -0.25 Financials 37.8912.56 1.02 14.4622.51 Infomation Tech. 9.5715.53 0.05 0.6520.75 Telecom. Services 0.6512.63 0.40 1.813.27 Utilities 6.736.14 Systematic Financial MgtR2000V Item # 4 125 Attachment number 2 Page 130 of 200 Item # 4 126 Attachment number 2 Page 131 of 200 City of Clearwater International EQ Comp as of 12/31/10 Portfolio Performance (%) 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 -4.0 -6.0 -8.0 QtrYTD1 Year3 Year5 Year10 YearIncept 5/31/01 International EQ CompMSCI EAFE Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 5/31/01 International EQ Comp9.0818.3718.37-0.906.636.87 MSCI EAFE 6.658.218.21-6.552.945.36 Asset Growth ($000) Beginning Market Value110,792102,105102,105109,24354,42720,000 Net Contributions & Withdrawals-2-163-163-163-163-163 Gain/Loss + Income10,05918,90818,90811,77066,586101,013 Ending Market Value120,850120,850120,850120,850120,850120,850 Top Equity HoldingsGICS Sector Allocation GICS Sector% Port% Port Bhp Billiton Ltd Materials4.84Energy22.41 Rio Tinto Plc Materials3.36Materials22.33 Potash Corp Sask IncMaterials2.94Industrials14.32 Schlumberger Ltd Energy2.64Consumer Discretionary1.99 Core Laboratories N Energy2.55Consumer Staples7.77 Arm Hldgs Plc Information Technology2.51Health Care6.87 Transocean Ltd Zug Energy2.49Financials18.66 Noble Corporation BaEnergy2.38Information Technology3.32 Weatherford InternatEnergy2.29Telecom Services2.33 Vale S A Materials2.16Utilities0.00 Item # 4 Holdings and allocations only include SMA accounts. 127 Attachment number 2 Page 132 of 200 City of Clearwater International EQ Comp as of 12/31/10 Asset Allocation ($000) Domestic Equity $28,801 23.83% Cash & Equiv $4,606 3.81% Intl Equity $87,442 72.36% Risk/Return Analysis Periods from 5/01 to 12/10 Alpha0.37 Beta1.02 R-Squared0.95 7.0 I 6.5 6.0 5.5 1 5.0 4.5 4.0 3.5 3.0 2.5 T 2.0 0.02.04.06.08.010.012.014.016.018.020.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio International EQ Comp 6.87 19.05 0.24 0.30 I MSCI EAFE 5.36 18.57 0.17 1 91-Day Treasury Bill 2.24 0.51 0.00 T Item # 4 Holdings and allocations only include SMA accounts. 128 Attachment number 2 Page 133 of 200 City of Clearwater Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 12/10 50% 45% 40% I 35% 30% 25% 20% 1 I 15% I 10% 1 I I I 1 I 1 1 1I 5% 1 1 I 0% I 1 -5% 1 -10% -15% LastLastLast 2Last 3Last 4Last 5Last 6Last 7Last 8Last 9 QtrYearYearsYearsYearsYearsYearsYearsYearsYears High12.5424.7846.653.8610.6114.6417.8018.2823.6721.12 1st Qt8.4417.0229.55-1.422.857.549.1911.2714.5412.47 6.898.9112.299.05 Median7.2911.9823.74-3.870.114.92 3rd Qt5.898.4519.40-6.88-2.372.844.696.9010.657.76 Low2.402.3711.07-10.43-4.681.063.135.359.086.14 International EQ Comp I Net Ret9.0818.3736.73-0.901.956.637.699.0611.608.55 46486358 Rank172014213431 MSCI EAFE 1 Net Ret6.658.2119.72-6.55-2.302.944.706.8510.447.18 74768183 Rank647671707273 Item # 4 129 Attachment number 2 Page 134 of 200 City of Clearwater Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December 80% 70% 60% I 50% 40% 1 1 30% I I 1 20% 1 I I 1 I 10% 1 I 1 0% -10% I 1 -20% -30% -40% 1 -50% I -60% 201020092008200720062005200420032002 High24.7875.57-24.1639.1635.4136.3931.4357.984.02 1st Qt17.0242.19-40.2717.9129.4420.7723.5543.10-9.37 19.9837.49-14.21 Median11.9835.69-43.3311.7526.0915.15 3rd Qt8.4526.17-47.407.7022.3611.5617.1632.40-17.03 Low2.379.83-57.570.7412.126.4410.2424.03-22.65 International EQ Comp I Net Ret18.3757.93-47.9411.0227.6213.1517.6631.06-13.03 728140 Rank201078573764 MSCI EAFE 1 Net Ret8.2132.46-43.0611.6326.8514.0120.6939.16-15.66 404063 Rank765947514156 Item # 4 130 Attachment number 2 Page 135 of 200 City of Clearwater Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 12/31/10 6.0 4.2 2.4 0.6 I -1.1 -2.9 Median Return -4.7 -6.5 1 -8.4 -10.2 -12.0 15.020.025.030.035.040.045.050.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank I International EQ Comp-0.902134.5377 1 MSCI EAFE -6.557031.0247 Median-3.8731.36 5 Years Ending 12/31/10 14.0 12.2 10.4 8.6 6.8 I Median 5.0 Return 3.1 1 1.3 -0.4 -2.2 -4.0 12.014.416.819.221.624.026.428.831.233.636.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank I International EQ Comp6.633127.0377 1 MSCI EAFE 2.947324.6852 Median4.9224.67 Item # 4 131 Attachment number 2 Page 136 of 200 City of Clearwater Earnest Partners as of 12/31/10 Portfolio Performance (%) 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 -4.0 -6.0 -8.0 QtrYTD1 Year3 Year5 Year10 YearIncept 4/30/08 Earnest PartnersMSCI EAFE Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 4/30/08 Earnest Partners6.6516.6116.610.93 MSCI EAFE 6.658.218.21-5.99 Asset Growth ($000) Beginning Market Value27,85825,48425,48429,002 Net Contributions & Withdrawals-1-4-4-4 Gain/Loss + Income1,8544,2314,231714 Ending Market Value29,71129,71129,71129,711 Top Equity HoldingsGICS Sector Allocation GICS Sector% Port% Port Arm Hldgs Plc Information Technology5.13Energy13.53 Weichai Power Co Industrials4.05Materials12.99 Rio Tinto Plc Materials3.22Industrials11.24 United Industrial CoFinancials3.22Consumer Discretionary4.08 Schoeller Bleckmann Energy3.20Consumer Staples1.93 Orient Overseas Int Industrials3.18Health Care11.26 Bhp Billiton Ltd Materials3.00Financials33.43 Dnb Nor Asa Financials2.74Information Technology6.79 Is MSCI Eafe Industrials2.72Telecom Services4.76 Core Laboratories N Energy2.71Utilities0.00 Item # 4 132 Attachment number 2 Page 137 of 200 City of Clearwater Earnest Partners as of 12/31/10 Asset Allocation ($000) Cash & Equiv $2,126 7.15% Intl Equity $27,586 92.85% Risk/Return Analysis (Number of returns < 12) Periods from 6/08 to 12/10 AlphaN/A BetaN/A R-SquaredN/A 2.0 1.0 e T 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 -6.0 1 -7.0 -5.00.05.010.015.020.025.030.035.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Earnest Partners 0.93 29.30 0.01 e MSCI EAFE -5.99 27.50 -0.24 1 91-Day Treasury Bill 0.52 0.24 0.00 T Item # 4 133 Attachment number 2 Page 138 of 200 City of Clearwater Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 12/10 50% 45% 40% 35% e 30% 25% 20% 1 e 15% 10% 1 e1 5% 0% LastLastLast 2 QtrYearYears High12.5424.7846.65 1st Qt8.4417.0229.55 Median7.2911.9823.74 3rd Qt5.898.4519.40 Low2.402.3711.07 Earnest Partners e Net Ret6.6516.6134.68 Rank642716 MSCI EAFE 1 Net Ret6.658.2119.72 Rank647671 Item # 4 134 Attachment number 2 Page 139 of 200 City of Clearwater Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December 80% 70% 60% e 50% 40% 1 30% 20% e 10% 1 0% 20102009 High24.7875.57 1st Qt17.0242.19 Median11.9835.69 3rd Qt8.4526.17 Low2.379.83 Earnest Partners e Net Ret16.6155.54 Rank2712 MSCI EAFE 1 Net Ret8.2132.46 Rank7659 Item # 4 135 Attachment number 2 Page 140 of 200 City of Clearwater Global Equity Summary Statistics Earnest Partners Period Ending 12/10 PortfolioMSCI EAFE Total Number Of Securities52969 Equity Market Value27,585,515 Average Capitalization $(000)35,296,17150,244,792 Median Capitalization $(000)16,639,1617,065,051 Equity Segment Yield1.752.94 Equity Segment P/E - Average18.8919.40 Equity Segment P/E - Median17.5717.50 Equity Segment Beta1.051.00 Price/Book Ratio2.041.59 Debt/Equity Ratio100.8198.09 Five Year Earnings Growth2.40-2.07 Five Year Dividend Growth3.125.34 Ten Largest Holdings Market Value% of PortfolioQuarterly Ret Arm Hldgs Plc 1,413,0755.1310.61 Weichai Power Co 1,117,3304.0516.55 Rio Tinto Plc 888,5843.2222.02 United Industrial Co888,1393.229.70 Schoeller Bleckmann 882,6063.2032.28 Orient Overseas Int 877,7993.1821.65 Bhp Billiton Ltd 826,9883.0021.75 Dnb Nor Asa 755,2412.743.08 Is MSCI Eafe 751,0382.727.00 Core Laboratories N 748,0202.711.22 Ten Best PerformersTen Worst Performers Quarterly RetQuarterly Ret China Oilfield Servi38.53Mindray Medical Intl-10.72 Ceragon Networks Ltd33.27Getinge Industrier -10.44 Schoeller Bleckmann 32.28Bnp Paribas -10.32 Hitachi 22.19Rogers Communication-6.67 Rio Tinto Plc 22.02Societe Generale -6.45 Bhp Billiton Ltd 21.75Posco -5.52 Orient Overseas Int 21.65Koninklijke Kpn Nv -5.41 Carnival Corp 20.97Mapfre Sa -5.40 Norsk Hydro Asa 20.93Bancolombia S A -5.15 Grupo Elektra(New) 20.26Credit Suisse Group -5.05 Item # 4 136 Attachment number 2 Page 141 of 200 City of Clearwater Global Performance Attribution Analysis Earnest Partners Quarter Ending 12/10 BenchmarkPortfolioReturn Attribution Countries/ActiveCurrencyLocalUS $ActiveCurrencyLocalUS $MarketCurrencySecurity CurrenciesWeightWeightReturnReturnWeightWeightReturnReturnSelectSelectSelectTotal Australia8.588.584.0410.142.770.1021.6621.921.250.491.74 Austria0.320.3213.7311.765.515.3623.4121.28-0.620.53-0.08 -2.45-4.140.270.27 Belgium0.970.970.000.00 Bermuda0.000.000.000.00 Brazil0.000.006.640.001.301.30 -6.67-6.67 Canada0.000.002.030.00 Cayman Islands0.100.1018.3518.190.000.00 0.010.01 China0.000.0013.270.0011.9211.77 -0.90-5.15-5.15 Colombia0.000.002.99 Cyprus0.000.000.000.00 Czech Republic0.000.000.770.7512.688.42 9.007.120.170.17 Denmark1.021.020.000.00 Finland1.121.127.755.880.000.00 0.200.20 France10.1410.143.621.833.793.69-7.19-8.791.40-0.410.99 Germany7.957.9511.279.340.000.001.141.14 Greece0.310.31-5.62-7.260.000.00 0.100.10 Hong Kong2.672.675.034.892.8415.6721.8121.65-0.030.480.44 India0.000.002.350.001.581.58 Ireland0.230.238.336.452.150.001.301.30-0.33-0.15-0.48 Isle of Man0.080.0817.7420.890.000.00 0.010.01 2.144.830.190.19 Israel0.820.820.000.00 Italy2.862.86-1.64-3.350.000.00 0.780.78 Japan21.1421.148.8312.097.046.858.4111.662.37-0.032.34 Kazakhstan0.000.000.000.00 Luxembourg0.000.000.000.00 Mexico0.000.000.940.9218.3720.26 4.272.48-0.45-1.50-0.49-0.72 Netherlands2.652.654.931.96-0.23 New Zealand0.100.105.3911.930.000.00 0.020.02 Norway0.810.8110.2111.045.914.138.3410.08-0.79-0.11-0.90 Panama0.000.000.800.0020.9720.97 Benchmark : MSCI EAFE Index Gross Dividend Item # 4 137 Attachment number 2 Page 142 of 200 City of Clearwater Global Performance Attribution Analysis Earnest Partners Quarter Ending 12/10 BenchmarkPortfolioReturn Attribution Countries/ActiveCurrencyLocalUS $ActiveCurrencyLocalUS $MarketCurrencySecurity CurrenciesWeightWeightReturnReturnWeightWeightReturnReturnSelectSelectSelectTotal Portugal0.280.281.11-0.640.000.00 0.070.07 Scotland0.030.0319.4118.640.000.00 0.000.00 5.89-0.330.12-0.22 Singapore1.701.703.133.183.106.849.70 South Korea0.000.002.880.00-2.14-2.14 Spain3.773.77-6.76-8.371.911.86-3.73-5.400.600.060.66 7.217.330.19-0.38-0.18 Sweden3.183.182.132.07-10.54-10.44 Switzerland7.827.822.777.725.872.002.133.850.45-0.040.41 United Kingdom21.5521.556.786.1016.137.1411.7410.601.020.801.82 -7.48-7.48 United States0.000.003.1544.40 100.00100.005.736.70100.0099.106.836.877.65 1.138.78 Benchmark : MSCI EAFE Index Gross Dividend Market Selection [Portfolio Active Weight - Benchmark Active Weight] x [Bench Currency Selection [Portfolio Currency Weight - Benchmark Currency Weight] x [ Security Selection [Portfolio Active Weight] x [Portfolio Market Return Premiu Item # 4 138 Attachment number 2 Page 143 of 200 City of Clearwater International Equity Sector Attribution Analysis Earnest Partners Quarter Ending 12/10 WeightReturnSelection GICS SectorsPortfolioIndexPortfolioIndexStockSectorTotal Energy12.367.3415.2610.380.600.180.79 Materials12.1610.5012.7217.99-0.640.19-0.45 Industrials11.5312.2515.3910.500.56-0.030.54 Consumer Discretionary3.6310.3718.469.000.34-0.150.19 Consumer Staples1.8910.417.423.920.070.240.31 Health Care11.958.51-0.612.58-0.38-0.14-0.52 Financials35.0924.821.011.79-0.27-0.51-0.78 Information Technology6.144.8212.9710.860.130.050.18 Telecom. Services5.255.76-4.122.21-0.330.02-0.31 Utilities0.005.222.540.000.220.22 100.00100.006.886.730.080.070.15 Index - MSCI EAFE Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfol Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] Trading Effect 0.32% [ Actual Return 7.19% ] - [ Buy Hold Return 6.88% ] Item # 4 139 Attachment number 2 Page 144 of 200 City of Clearwater Wentworth & Violich as of 12/31/10 Portfolio Performance (%) 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 -4.0 -6.0 -8.0 QtrYTD1 Year3 Year5 Year10 YearIncept 4/30/08 Wentworth & ViolichMSCI EAFE Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 4/30/08 Wentworth & Violich14.7717.5817.58-1.75 MSCI EAFE 6.658.218.21-5.99 Asset Growth ($000) Beginning Market Value27,33926,68526,68529,002 Net Contributions & Withdrawals-1-2-2-2 Gain/Loss + Income4,0364,6914,6912,374 Ending Market Value31,37431,37431,37431,374 Top Equity HoldingsGICS Sector Allocation GICS Sector% Port% Port Bhp Billiton Ltd Materials6.60Energy30.91 Potash Corp Sask IncMaterials5.76Materials31.26 Schlumberger Ltd Energy5.18Industrials17.28 Noble Corporation BaEnergy4.67Consumer Discretionary0.00 Weatherford InternatEnergy4.49Consumer Staples13.37 Vale S A Materials4.24Health Care2.66 Nestle S A Consumer Staples4.21Financials4.52 Tenaris S A Energy4.03Information Technology0.00 Cooper Industries PlIndustrials3.91Telecom Services0.00 Suncor Energy Inc NeMaterials3.80Utilities0.00 Item # 4 140 Attachment number 2 Page 145 of 200 City of Clearwater Wentworth & Violich as of 12/31/10 Asset Allocation ($000) Cash & Equiv $2,498 7.96% Intl Equity $28,877 92.04% Risk/Return Analysis (Number of returns < 12) Periods from 6/08 to 12/10 AlphaN/A BetaN/A R-SquaredN/A 1.0 0.5 T 0.0 -0.5 -1.0 -1.5 w -2.0 -2.5 -3.0 -3.5 -4.0 -4.5 -5.0 -5.5 -6.0 1 -6.5 -5.00.05.010.015.020.025.030.035.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Wentworth & Violich -1.75 30.31 -0.07 w MSCI EAFE -5.99 27.50 -0.24 1 91-Day Treasury Bill 0.52 0.24 0.00 T Item # 4 141 Attachment number 2 Page 146 of 200 City of Clearwater Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 12/10 50% 45% 40% 35% w 30% 25% 20% 1 w 15% w 10% 1 1 5% 0% LastLastLast 2 QtrYearYears High12.5424.7846.65 1st Qt8.4417.0229.55 Median7.2911.9823.74 3rd Qt5.898.4519.40 Low2.402.3711.07 Wentworth & Violich w Net Ret14.7717.5835.43 Rank22315 MSCI EAFE 1 Net Ret6.658.2119.72 Rank647671 Item # 4 142 Attachment number 2 Page 147 of 200 City of Clearwater Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December 80% 70% 60% w 50% 40% 1 30% 20% w 10% 1 0% 20102009 High24.7875.57 1st Qt17.0242.19 Median11.9835.69 3rd Qt8.4526.17 Low2.379.83 Wentworth & Violich w Net Ret17.5855.98 Rank2312 MSCI EAFE 1 Net Ret8.2132.46 Rank7659 Item # 4 143 Attachment number 2 Page 148 of 200 City of Clearwater Global Equity Summary Statistics Wentworth & Violich Period Ending 12/10 PortfolioMSCI EAFE Total Number Of Securities35969 Equity Market Value28,876,588 Average Capitalization $(000)59,251,78250,244,792 Median Capitalization $(000)30,447,0677,065,051 Equity Segment Yield1.212.94 Equity Segment P/E - Average18.2519.40 Equity Segment P/E - Median18.6517.50 Equity Segment Beta0.001.00 Price/Book Ratio2.471.59 Debt/Equity Ratio52.1398.09 Five Year Earnings Growth14.24-2.07 Five Year Dividend Growth6.645.34 Ten Largest Holdings Market Value% of PortfolioQuarterly Ret Bhp Billiton Ltd 1,900,2146.6021.75 Potash Corp Sask Inc1,658,2295.767.56 Schlumberger Ltd 1,490,4755.1835.90 Noble Corporation Ba1,343,1644.676.24 Weatherford Internat1,292,1904.4933.33 Vale S A 1,219,4574.2411.32 Nestle S A 1,211,6924.2110.09 Tenaris S A 1,159,6024.0328.24 Cooper Industries Pl1,126,4543.9119.72 Suncor Energy Inc Ne1,093,1803.8017.97 Ten Best PerformersTen Worst Performers Quarterly RetQuarterly Ret Teck Resources Ltd 50.99Fibria Celulose S A -7.46 Manulife Finl Corp 37.22Axa Sa -4.20 Schlumberger Ltd 35.90Ubs Ag -3.29 Weatherford Internat33.33Partnerre Hldgs Ltd 0.92 Ingersoll-Rand Plc 32.08Core Laboratories N 1.22 Nabors Industries Lt29.90Novartis A G 2.22 Canadian Nat Res Ltd28.61British Amern Tob Pl4.00 Yara Intl Asa 28.38Canadian Natl Ry Co 4.24 Tenaris S A 28.24Unilever N V 5.93 Talisman Energy Inc 27.65Noble Corporation Ba6.24 Item # 4 144 Attachment number 2 Page 149 of 200 City of Clearwater Global Performance Attribution Analysis Wentworth & Violich Quarter Ending 12/10 BenchmarkPortfolioReturn Attribution Countries/ActiveCurrencyLocalUS $ActiveCurrencyLocalUS $MarketCurrencySecurity CurrenciesWeightWeightReturnReturnWeightWeightReturnReturnSelectSelectSelectTotal Australia8.588.584.0410.146.260.0021.7521.750.501.111.61 Austria0.320.3213.7311.760.000.00 0.040.04 -2.45-4.14 Belgium0.970.970.000.00 0.270.27 Bermuda0.000.009.830.0018.7418.74 Brazil0.000.003.970.0010.5310.53 Canada0.000.0026.360.0017.2717.27 Cayman Islands0.100.1018.3518.195.090.006.246.24-0.36-0.62-0.98 China0.000.000.000.00 Cyprus0.000.000.000.00 Denmark1.021.029.007.120.000.00 0.170.17 Finland1.121.127.755.880.000.00 0.200.20 -4.20-4.20-0.05 France10.1410.143.621.830.610.002.102.05 Germany7.957.9511.279.343.110.0019.7119.710.700.260.96 Greece0.310.31-5.62-7.260.000.00 0.100.10 5.034.89 Hong Kong2.672.670.000.00 0.550.55 Ireland0.230.238.336.452.640.0032.0832.08-0.420.630.21 Isle of Man0.080.0817.7420.890.000.00 0.010.01 0.19 Israel0.820.822.144.830.000.00 0.19 Italy2.862.86-1.64-3.350.000.00 0.780.78 Japan21.1421.148.8312.090.000.00 3.553.55 Kazakhstan0.000.000.000.00 Luxembourg0.000.003.650.0028.2428.24 Netherland Antilles0.000.004.410.0035.9035.90 4.272.48-0.58-0.04-0.62 Netherlands2.652.655.380.003.533.53 New Zealand0.100.105.3911.930.000.00 0.020.02 Norway0.810.8110.2111.040.160.0028.3828.380.100.030.13 1.11-0.64 Portugal0.280.280.000.00 0.070.07 Scotland0.030.0319.4118.640.000.00 0.000.00 Singapore1.701.703.135.890.000.00 0.380.38 -6.76-8.37 Spain3.773.770.000.00 1.221.22 Benchmark : MSCI EAFE Index Gross Dividend Item # 4 145 Attachment number 2 Page 150 of 200 City of Clearwater Global Performance Attribution Analysis Wentworth & Violich Quarter Ending 12/10 BenchmarkPortfolioReturn Attribution Countries/ActiveCurrencyLocalUS $ActiveCurrencyLocalUS $MarketCurrencySecurity CurrenciesWeightWeightReturnReturnWeightWeightReturnReturnSelectSelectSelectTotal Sweden3.183.187.217.330.000.00 0.590.59 Switzerland7.827.822.777.7218.390.0013.1013.10-2.421.90-0.52 2.150.352.50 United Kingdom21.5521.556.786.1010.150.0010.2710.27 United States0.000.000.00100.00 9.90 3.5813.48 100.00100.005.736.70100.00100.0016.2316.23 Benchmark : MSCI EAFE Index Gross Dividend Market Selection [Portfolio Active Weight - Benchmark Active Weight] x [Bench Currency Selection [Portfolio Currency Weight - Benchmark Currency Weight] x [ Security Selection [Portfolio Active Weight] x [Portfolio Market Return Premiu Item # 4 146 Attachment number 2 Page 151 of 200 City of Clearwater International Equity Sector Attribution Analysis Wentworth & Violich Quarter Ending 12/10 WeightReturnSelection GICS SectorsPortfolioIndexPortfolioIndexStockSectorTotal Energy29.517.3421.2310.383.200.814.01 Materials29.5810.5019.8617.990.552.152.70 Industrials17.8512.2514.6310.500.740.210.95 Consumer Discretionary0.0010.379.000.00-0.24-0.24 Consumer Staples14.3610.417.753.920.55-0.110.44 Health Care3.018.512.222.58-0.010.230.22 Financials4.9324.826.191.790.220.981.20 Information Technology0.004.8210.860.00-0.20-0.20 Telecom. Services0.005.762.210.000.260.26 Utilities0.765.22-1.502.54-0.030.190.16 100.00100.0016.236.735.224.289.50 Index - MSCI EAFE Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfol Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] Trading Effect 0.02% [ Actual Return 16.25% ] - [ Buy Hold Return 16.23% ] Item # 4 147 Attachment number 2 Page 152 of 200 City of Clearwater Eaton Vance Mgmt as of 12/31/10 Portfolio Performance (%) 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 QtrYTD1 Year3 Year5 Year10 YearIncept 4/30/08 Eaton Vance MgmtMSCI Emg Mkts Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 4/30/08 Eaton Vance Mgmt7.6023.3323.332.41 MSCI Emg Mkts 7.3619.1919.191.38 Asset Growth ($000) Beginning Market Value28,79225,11925,1198,277 Net Contributions & Withdrawals0-157-157-157 Gain/Loss + Income2,1896,0186,01822,860 Ending Market Value30,98030,98030,98030,980 Item # 4 148 Attachment number 2 Page 153 of 200 City of Clearwater Eaton Vance Mgmt as of 12/31/10 Asset Allocation ($000) Intl Equity $30,980 100.00% Risk/Return Analysis (Number of returns < 12) Periods from 6/08 to 12/10 AlphaN/A BetaN/A R-SquaredN/A 2.6 2.4 v 2.2 2.0 1.8 1.6 1.4 1 1.2 1.0 0.8 0.6 T 0.4 -5.00.05.010.015.020.025.030.035.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Eaton Vance Mgmt 2.41 32.34 0.06 v MSCI Emg Mkts 1.38 33.38 0.03 1 91-Day Treasury Bill 0.52 0.24 0.00 T Item # 4 149 Attachment number 2 Page 154 of 200 City of Clearwater Cumulative Performance Comparison Total Returns of Emerging Markets Portfolios Periods Ending 12/10 55% 50% 1 45% v 40% 35% 30% 25% v 20% 1 15% 10% v 1 5% 0% LastLastLast 2 QtrYearYears High8.8129.4853.20 1st Qt7.7124.1045.98 Median5.9620.8043.97 3rd Qt5.3018.4339.77 Low2.218.8813.21 Eaton Vance Mgmt v Net Ret7.6023.3343.52 Rank283650 MSCI Emg Mkts 1 Net Ret7.3619.1946.07 Rank326122 Item # 4 150 Attachment number 2 Page 155 of 200 City of Clearwater Calendar Year Performance Comparison Total Returns of Emerging Markets Portfolios Years Ending December 100% 90% 80% 1 70% v 60% 50% 40% 30% v 20% 1 10% 0% 20102009 High29.4892.22 1st Qt24.1077.74 Median20.8070.53 3rd Qt18.4350.52 Low8.8827.05 Eaton Vance Mgmt v Net Ret23.3367.01 Rank3662 MSCI Emg Mkts 1 Net Ret19.1979.02 Rank6121 Item # 4 151 Attachment number 2 Page 156 of 200 City of Clearwater Wellington Mgmt as of 12/31/10 Portfolio Performance (%) 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 QtrYTD1 Year3 Year5 Year10 YearIncept 3/31/08 Wellington MgmtMSCI Emg Mkts Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 3/31/08 Wellington Mgmt7.3915.9915.995.08 MSCI Emg Mkts 7.3619.1919.194.26 Asset Growth ($000) Beginning Market Value26,80424,81624,8168,000 Net Contributions & Withdrawals0000 Gain/Loss + Income1,9803,9683,96820,784 Ending Market Value28,78428,78428,78428,784 Item # 4 152 Attachment number 2 Page 157 of 200 City of Clearwater Wellington Mgmt as of 12/31/10 Asset Allocation ($000) Cash & Equiv $-17 -0.06% Domestic Equity $28,801 100.06% Risk/Return Analysis (Number of returns < 12) Periods from 3/08 to 12/10 AlphaN/A BetaN/A R-SquaredN/A 5.5 l 5.0 4.5 1 4.0 3.5 3.0 2.5 2.0 1.5 1.0 T 0.5 0.0 -5.00.05.010.015.020.025.030.035.040.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Wellington Mgmt 5.08 36.91 0.12 l MSCI Emg Mkts 4.26 37.89 0.10 1 91-Day Treasury Bill 0.54 0.38 0.00 T Item # 4 153 Attachment number 2 Page 158 of 200 City of Clearwater Cumulative Performance Comparison Total Returns of Emerging Markets Portfolios Periods Ending 12/10 55% 50% 1 45% l 40% 35% 30% 25% 20% 1 l 15% 10% l1 5% 0% LastLastLast 2 QtrYearYears High8.8129.4853.20 1st Qt7.7124.1045.98 Median5.9620.8043.97 3rd Qt5.3018.4339.77 Low2.218.8813.21 Wellington Mgmt l Net Ret7.3915.9942.25 Rank318767 MSCI Emg Mkts 1 Net Ret7.3619.1946.07 Rank326122 Item # 4 154 Attachment number 2 Page 159 of 200 City of Clearwater Calendar Year Performance Comparison Total Returns of Emerging Markets Portfolios Years Ending December 100% 90% 80% 1 l 70% 60% 50% 40% 30% 20% 1 l 10% 0% 20102009 High29.4892.22 1st Qt24.1077.74 Median20.8070.53 3rd Qt18.4350.52 Low8.8827.05 Wellington Mgmt l Net Ret15.9974.44 Rank8731 MSCI Emg Mkts 1 Net Ret19.1979.02 Rank6121 Item # 4 155 Attachment number 2 Page 160 of 200 Item # 4 156 Attachment number 2 Page 161 of 200 City of Clearwater Fixed Income Comp as of 12/31/10 Portfolio Performance (%) 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 QtrYTD1 Year3 Year5 Year10 YearIncept 12/31/87 Fixed Income CompBC Agg Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year12/31/87 Fixed Income Comp-0.397.377.377.356.615.687.00 BC Agg -1.306.546.545.915.805.847.34 Asset Growth ($000) Beginning Market Value190,209180,115180,115212,692175,843165,69659,224 Net Contributions & Withdrawals2,830-938-938-938-938-938-938 Gain/Loss + Income-75613,10713,107-19,47117,37927,525133,998 Ending Market Value192,283192,283192,283192,283192,283192,283192,283 Top Fixed Income HoldingsSector Allocation Sector% Port% Port United States TreasGovernment3.31Finance17.94 United States TreasGovernment2.61Government23.04 FNMA Pool #ad0494Mortgage1.94Industrials15.47 United States TreasGovernment1.31Mortgage37.20 FNMA Pool #ad0217Mortgage1.26Transportation1.80 FNMA Cl 30 - Tba JanMortgage1.23Utilities0.57 FNMA Pool Ae0381Mortgage1.22Municipals2.44 Fhgld Pool #g03771Mortgage1.20Foreign0.58 United States TreasGovernment1.08Miscellaneous0.96 United States TreasGovernment1.07 Item # 4 Holdings and allocations only include SMA accounts. 157 Attachment number 2 Page 162 of 200 City of Clearwater Fixed Income Comp as of 12/31/10 Asset Allocation ($000) Domestic FixedDomestic Equity $173,490 90.23%$75 0.04% Cash & Equiv $18,718 9.73% Risk/Return Analysis Periods from 12/87 to 12/10 Alpha0.22 Beta0.59 R-Squared0.57 7.5 1 7.0 F 6.5 6.0 5.5 5.0 4.5 T 4.0 1.01.52.02.53.03.54.04.5 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Fixed Income Comp 7.00 3.20 0.87 -0.15 F BC Agg 7.34 4.17 0.75 1 91-Day Treasury Bill 4.24 1.15 0.00 T Item # 4 Holdings and allocations only include SMA accounts. 158 Attachment number 2 Page 163 of 200 City of Clearwater Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 12/10 24% 22% 20% 18% 16% 14% 12% 10% F 8% F F F F 1 6% 1 1 F 1 1 1 FF F 1 F 1 1 1 4% 2% 0% F 1 -2% -4% LastLastLast 2Last 3Last 4Last 5Last 6Last 7Last 8Last 9Last 10 QtrYearYearsYearsYearsYearsYearsYearsYearsYearsYears High4.0815.4321.469.199.118.097.437.298.147.627.72 1st Qt0.279.7211.427.167.106.636.035.905.936.376.67 5.485.295.185.695.97 Median-0.777.027.856.026.356.03 3rd Qt-1.295.695.544.605.295.254.794.604.595.055.40 Low-3.160.690.860.862.062.592.912.973.383.824.07 Fixed Income Comp F Net Ret-0.397.379.847.357.006.615.935.645.405.705.68 2831414966 Rank404535222725 BC Agg 1 Net Ret-1.306.546.245.916.175.805.235.104.985.555.84 6059626059 Rank766168545659 Item # 4 159 Attachment number 2 Page 164 of 200 City of Clearwater Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December 25% 20% 15% F 10% 1 1 F F 1 1 1F 5% F 1 F 11 1 F F F F 1 0% -5% -10% -15% 2010200920082007200620052004200320022001 High15.4319.379.609.6511.386.6710.4617.3112.2510.59 1st Qt9.7213.015.507.475.303.075.205.7810.419.12 4.344.449.318.38 Median7.028.223.476.514.572.54 3rd Qt5.695.28-0.995.044.132.033.163.556.987.17 Low0.69-0.27-10.582.162.891.321.321.770.952.54 Fixed Income Comp F Net Ret7.3712.372.545.945.052.593.933.778.065.57 61706686 Rank452657603047 BC Agg 1 Net Ret6.545.935.246.964.332.434.344.1110.268.43 50622848 Rank616929396556 Item # 4 160 Attachment number 2 Page 165 of 200 City of Clearwater Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 12/31/10 11.0 10.0 9.0 8.0 F 7.0 Median 6.0 1 Return 5.0 4.0 3.0 2.0 1.0 0.02.04.06.08.010.012.014.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank F Fixed Income Comp7.35225.0552 1 BC Agg 5.91543.8928 Median6.025.03 5 Years Ending 12/31/10 11.0 10.0 9.0 8.0 7.0 F Median 6.0 1 Return 5.0 4.0 3.0 2.0 1.0 0.01.22.43.64.86.07.28.49.610.812.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank F Fixed Income Comp6.61254.2855 1 BC Agg 5.80593.6233 Median6.034.13 Item # 4 161 Attachment number 2 Page 166 of 200 City of Clearwater Dodge & Cox as of 12/31/10 Portfolio Performance (%) 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 QtrYTD1 Year3 Year5 Year10 YearIncept 2/29/04 Dodge & CoxBC Agg Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 2/29/04 Dodge & Cox0.137.537.537.686.825.68 BC Agg -1.306.546.545.915.804.94 Asset Growth ($000) Beginning Market Value105,54898,28498,284101,70779,32475,656 Net Contributions & Withdrawals000-2,415-2,415-2,415 Gain/Loss + Income1417,4057,4056,39728,78032,449 Ending Market Value105,690105,690105,690105,690105,690105,690 Top Fixed Income HoldingsSector Allocation Sector% Port% Port United States TreasGovernment4.74Finance19.39 FNMA Pool #ad0494Mortgage3.53Government12.44 FNMA Pool #ad0217Mortgage2.30Industrials16.27 FNMA Pool Ae0381Mortgage2.23Mortgage43.28 Fhgld Pool #g03771Mortgage2.19Transportation2.26 United States TreasGovernment1.95Utilities0.47 United States TreasGovernment1.89Municipals4.10 FNMA Pool #ad0119Mortgage1.87Foreign0.25 Xerox Corp Sr Nt 6.4Industrials1.71Miscellaneous1.52 FNMA Pool #984262Mortgage1.61 Item # 4 162 Attachment number 2 Page 167 of 200 City of Clearwater Dodge & Cox as of 12/31/10 Asset Allocation ($000) Domestic FixedCash & Equiv $103,219 97.66%$2,471 2.34% Risk/Return Analysis Periods from 2/04 to 12/10 Alpha0.23 Beta0.93 R-Squared0.63 6.0 d 5.5 5.0 1 4.5 4.0 3.5 3.0 2.5 T 2.0 0.51.01.52.02.53.03.54.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Dodge & Cox 5.68 3.79 0.87 0.26 d BC Agg 4.94 3.64 0.70 1 91-Day Treasury Bill 2.39 0.58 0.00 T Item # 4 163 Attachment number 2 Page 168 of 200 City of Clearwater Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 12/10 24% 22% 20% 18% 16% 14% 12% d 10% 8% d d d d 1 6% 1 1 d 1 1 1 4% 2% 0% d 1 -2% -4% LastLastLast 2Last 3Last 4Last 5Last 6 QtrYearYearsYearsYearsYearsYears High4.0815.4321.469.199.118.097.43 1st Qt0.279.7211.427.167.106.636.03 5.48 Median-0.777.027.856.026.356.03 3rd Qt-1.295.695.544.605.295.254.79 Low-3.160.690.860.862.062.592.91 Dodge & Cox d Net Ret0.137.5310.987.687.126.826.07 24 Rank264329182419 BC Agg 1 Net Ret-1.306.546.245.916.175.805.23 60 Rank766168545659 Item # 4 164 Attachment number 2 Page 169 of 200 City of Clearwater Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December 25% 20% 15% d 10% d 1 1 1 5%d d 1 1 d1 d 0% -5% -10% -15% 201020092008200720062005 High15.4319.379.609.6511.386.67 1st Qt9.7213.015.507.475.303.07 Median7.028.223.476.514.572.54 3rd Qt5.695.28-0.995.044.132.03 Low0.69-0.27-10.582.162.891.32 Dodge & Cox d Net Ret7.5314.531.375.475.622.40 Rank431563672058 BC Agg 1 Net Ret6.545.935.246.964.332.43 Rank616929396556 Item # 4 165 Attachment number 2 Page 170 of 200 City of Clearwater December 31, 2010 Item # 4 166 Attachment number 2 Page 171 of 200 City of Clearwater Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 12/31/10 11.0 10.0 9.0 8.0 d 7.0 Median 6.0 1 Return 5.0 4.0 3.0 2.0 1.0 0.02.04.06.08.010.012.014.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank d Dodge & Cox7.68185.3859 1 BC Agg 5.91543.8928 Median6.025.03 5 Years Ending 12/31/10 11.0 10.0 9.0 8.0 7.0 d Median 6.0 1 Return 5.0 4.0 3.0 2.0 1.0 0.01.22.43.64.86.07.28.49.610.812.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank d Dodge & Cox6.82194.4056 1 BC Agg 5.80593.6233 Median6.034.13 Item # 4 167 Attachment number 2 Page 172 of 200 City of Clearwater Fixed Income, Mortgage and Municipals Summary Statistics Dodge & Cox Quarter Ending 12/10 PortfolioBC Agg Total Number Of Securities1567,999 Total Market Value103,218,717 Yield to Maturity2.452.97 Time to Maturity14.567.08 Current Coupon5.734.24 Duration4.415.25 Effective Convexity0.18-0.04 Effective Duration3.824.98 Effective Maturity5.917.08 Yield to Maturity Time to Maturity Coupon 0 - 117.0% 0 - 114.7% 0 - 311.5% 1 - 213.9% 1 - 32.1% 3 - 53.4% 2 - 319.8% 3 - 54.9% 5 - 766.7% 3 - 420.2% 5 - 710.6% 7 - 917.2% 4 - 512.4% 7 - 1014.3% 9 - 111.1% 5+ 16.7%10+ 53.4%11+ 0.0% Quality Duration Effective Duration GOVT 12.2% 0 - 115.1%0 - 121.2% AAA 42.3% 1 - 332.7%1 - 330.5% AA 5.2% 3 - 413.5%3 - 412.0% A 13.2% BAA 19.1% 4 - 613.7%4 - 615.3% BA 4.7% 6 - 810.0%6 - 87.9% B 1.4% 8+ 15.1%8+ 13.1% NR 1.9% Item # 4 168 Attachment number 2 Page 173 of 200 City of Clearwater Percent Invested by Sector and Quality Dodge & Cox As of 12/31/10 Moody's Quality Ratings NameAaaAaABaaBaBOtherNRTotal Government 12.44---------------------12.44 Treasury10.36---------------------10.36 Agency2.09---------------------2.09 Corporate ---4.009.7216.644.661.37---0.0036.39 Industrial---1.031.7710.053.43---------16.28 Utility------------0.47---------0.47 Finance---2.977.706.590.761.37---0.0019.39 Yankee------0.25---------------0.25 Transportation ---0.460.551.24------------2.25 Mortgage 42.10------------------1.1843.28 GNMA--------------------------- FHLMC6.67---------------------6.67 FNMA31.52------------------1.1832.70 Other Mortgage3.90---------------------3.90 Municipals ---0.462.96------------0.684.10 Cash --------------------------- Other ---0.30---1.23------------1.53 Total 54.545.2213.2419.114.661.37---1.86100.00 Item # 4 169 Attachment number 2 Page 174 of 200 City of Clearwater Fixed Income Sector Attribution Analysis Dodge & Cox Quarter Ending 12/10 WeightReturnSelection PortfolioIndexPortfolioIndexSecuritySectorTotal Finance20.1011.10-1.13-0.05-0.220.08-0.14 Government10.2942.59-0.02-2.230.230.420.65 Industrials17.699.64-0.64-1.850.21-0.070.14 Mortgage42.9233.332.060.820.530.170.70 Transportation3.060.37-2.21-2.650.01-0.05-0.03 Utilities0.491.28-0.62-2.820.010.020.03 Municipals3.620.00-3.380.80-0.150.06-0.09 Foreign0.261.69-1.72-1.34-0.000.010.00 Miscellaneous1.570.000.000.000.010.01 100.00100.000.34-0.930.630.641.27 Index - Wilshire GCM Index Security Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfol Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] Trading Effect -0.20% [ Actual Return 0.14% ] - [ Buy Hold Return 0.34% ] Item # 4 170 Attachment number 2 Page 175 of 200 City of Clearwater Western Asset Management Co. as of 12/31/10 Portfolio Performance (%) 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 QtrYTD1 Year3 Year5 Year10 YearIncept 9/30/04 Western Asset Management Co.BC Agg Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 9/30/04 Western Asset Management Co.-1.097.097.096.736.275.62 BC Agg -1.306.546.545.915.805.17 Asset Growth ($000) Beginning Market Value82,37876,08976,089100,79878,40074,568 Net Contributions & Withdrawals000000 Gain/Loss + Income-8965,3935,393-19,3163,0836,914 Ending Market Value81,48281,48281,48281,48281,48281,482 Top Fixed Income HoldingsSector Allocation Sector% Port% Port United States TreasGovernment7.81Finance15.82 United States TreasGovernment3.08Government38.57 FNMA Cl 30 - Tba JanMortgage2.90Industrials14.29 United States TreasGovernment2.54Mortgage28.28 FNMA Ci 15 - Tba JanMortgage2.47Transportation1.12 Federal Home Ln MtgGovernment2.46Utilities0.71 FNMA Cl 30 - Tba JanMortgage2.36Municipals0.00 GNMA Ii Pool 004772Mortgage1.92Foreign1.07 GNMA Ii Sf 30 - TbaMortgage1.91Miscellaneous0.13 United States TreasGovernment1.89 Item # 4 171 Attachment number 2 Page 176 of 200 City of Clearwater Western Asset Management Co. as of 12/31/10 Asset Allocation ($000) Domestic FixedDomestic Equity $70,271 86.24%$75 0.09% Cash & Equiv $11,136 13.67% Risk/Return Analysis Periods from 9/04 to 12/10 Alpha0.03 Beta1.12 R-Squared0.92 6.0 w 5.5 1 5.0 4.5 4.0 3.5 3.0 2.5 T 2.0 0.51.01.52.02.53.03.54.04.5 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Western Asset Management 5.62 4.04 0.77 0.34 w BC Agg 5.17 3.49 0.76 1 91-Day Treasury Bill 2.51 1.00 0.00 T Item # 4 172 Attachment number 2 Page 177 of 200 City of Clearwater Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 12/10 24% 22% 20% 18% 16% 14% 12% 10% 8% w w w w 1 6% w 1 1 1 1 w 1 4% 2% 0% w 1 -2% -4% LastLastLast 2Last 3Last 4Last 5Last 6 QtrYearYearsYearsYearsYearsYears High4.0815.4321.469.199.118.097.43 1st Qt0.279.7211.427.167.106.636.03 5.48 Median-0.777.027.856.026.356.03 3rd Qt-1.295.695.544.605.295.254.79 Low-3.160.690.860.862.062.592.91 Western Asset Management Co. w Net Ret-1.097.098.166.736.676.275.67 41 Rank654947323840 BC Agg 1 Net Ret-1.306.546.245.916.175.805.23 60 Rank766168545659 Item # 4 173 Attachment number 2 Page 178 of 200 City of Clearwater Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December 25% 20% 15% 10% w w 1 1 w 1 5% 1 w 1 w w 1 0% -5% -10% -15% 201020092008200720062005 High15.4319.379.609.6511.386.67 1st Qt9.7213.015.507.475.303.07 Median7.028.223.476.514.572.54 3rd Qt5.695.28-0.995.044.132.03 Low0.69-0.27-10.582.162.891.32 Western Asset Management Co. w Net Ret7.099.243.926.514.662.77 Rank494346504438 BC Agg 1 Net Ret6.545.935.246.964.332.43 Rank616929396556 Item # 4 174 Attachment number 2 Page 179 of 200 City of Clearwater December 31, 2010 Item # 4 175 Attachment number 2 Page 180 of 200 City of Clearwater Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 12/31/10 11.0 10.0 9.0 8.0 7.0 w Median 6.0 1 Return 5.0 4.0 3.0 2.0 1.0 0.02.04.06.08.010.012.014.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w Western Asset Management Co.6.73324.8949 1 BC Agg 5.91543.8928 Median6.025.03 5 Years Ending 12/31/10 11.0 10.0 9.0 8.0 7.0 w Median 6.0 1 Return 5.0 4.0 3.0 2.0 1.0 0.01.22.43.64.86.07.28.49.610.812.0 Historical Standard Deviation of Return Annualized Net of Fee ReturnStandard Deviation ValueRankValueRank w Western Asset Management Co.6.27404.3255 1 BC Agg 5.80593.6233 Median6.034.13 Item # 4 176 Attachment number 2 Page 181 of 200 City of Clearwater Fixed Income, Mortgage and Municipals Summary Statistics Western Asset Management Co. Quarter Ending 12/10 PortfolioBC Agg Total Number Of Securities2257,999 Total Market Value70,271,060 Yield to Maturity3.402.97 Time to Maturity16.647.08 Current Coupon4.424.24 Duration6.685.25 Effective Convexity0.52-0.04 Effective Duration5.924.98 Effective Maturity10.137.08 Yield to Maturity Time to Maturity Coupon 0 - 112.3% 0 - 16.8% 0 - 322.4% 1 - 25.2% 1 - 36.7% 3 - 534.2% 2 - 320.5% 3 - 55.4% 5 - 735.9% 3 - 430.8% 5 - 710.6% 7 - 95.5% 4 - 517.7% 7 - 1023.8% 9 - 111.8% 5+ 13.5%10+ 46.8%11+ 0.1% Quality Duration Effective Duration GOVT 32.9% 0 - 17.3%0 - 18.4% AAA 32.8% 1 - 317.3%1 - 323.4% AA 5.5% 3 - 47.9%3 - 49.7% A 12.8% BAA 11.4% 4 - 623.7%4 - 617.3% BA 1.3% 6 - 89.9%6 - 818.2% B 1.4% 8+ 33.9%8+ 23.0% NR 2.0% Item # 4 177 Attachment number 2 Page 182 of 200 City of Clearwater Percent Invested by Sector and Quality Western Asset Management Co. As of 12/31/10 Moody's Quality Ratings NameAaaAaABaaBaBOtherNRTotal Government 38.100.21---0.26------------38.57 Treasury26.27---------------------26.27 Agency11.830.21---0.26------------12.30 Corporate 0.174.5112.7811.011.310.550.001.5731.90 Industrial---1.234.867.820.38---------14.29 Utility------0.380.180.15---------0.71 Finance---3.287.212.440.780.550.001.5715.83 Yankee0.17---0.340.57------------1.08 Transportation ---0.21---0.11---0.81------1.13 Mortgage 27.450.53---------------0.3028.28 GNMA10.59---------------------10.59 FHLMC1.33---------------------1.33 FNMA13.54---------------------13.54 Other Mortgage1.990.53---------------0.302.82 Municipals --------------------------- Cash --------------------------- Other ---------------------0.130.13 Total 65.725.4612.7811.381.311.350.002.00100.00 Item # 4 178 Attachment number 2 Page 183 of 200 City of Clearwater Fixed Income Sector Attribution Analysis Western Asset Management Co. Quarter Ending 12/10 WeightReturnSelection PortfolioIndexPortfolioIndexSecuritySectorTotal Finance16.5711.10-0.19-0.05-0.020.050.03 Government27.8242.59-3.26-2.23-0.290.19-0.09 Industrials14.809.64-1.62-1.850.03-0.05-0.01 Mortgage37.6233.331.240.820.160.070.23 Transportation0.720.373.14-2.650.04-0.010.04 Utilities0.741.28-4.78-2.82-0.010.01-0.00 Municipals0.000.000.000.80-0.00-0.00-0.00 Foreign1.741.69-1.96-1.34-0.01-0.00-0.01 Miscellaneous0.000.000.000.000.000.00 100.00100.00-0.76-0.93-0.100.270.17 Index - Wilshire GCM Index Security Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfol Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] Trading Effect -0.59% [ Actual Return -1.34% ] - [ Buy Hold Return -0.76% ] Item # 4 179 Attachment number 2 Page 184 of 200 Item # 4 180 Attachment number 2 Page 185 of 200 City of Clearwater Real Estate Comp as of 12/31/10 Portfolio Performance (%) 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 QtrYTD1 Year3 Year5 Year10 YearIncept 4/30/08 Real Estate CompWilshire RESI Index Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 4/30/08 Real Estate Comp6.9930.5130.51-3.08 Wilshire RESI Index 8.1829.1229.12-2.84 Asset Growth ($000) Beginning Market Value60,71249,77049,77019,347 Net Contributions & Withdrawals-2,000-2,000-2,000-2,000 Gain/Loss + Income4,11115,05315,05345,477 Ending Market Value62,82362,82362,82362,823 Item # 4 181 Attachment number 2 Page 186 of 200 City of Clearwater Real Estate Comp as of 12/31/10 Asset Allocation ($000) Cash & Equiv $906 1.44% Real Estate $61,917 98.56% Risk/Return Analysis (Number of returns < 12) Periods from 6/08 to 12/10 AlphaN/A BetaN/A R-SquaredN/A 1.0 0.5 T 0.0 -0.5 -1.0 -1.5 -2.0 -2.5 1 -3.0 R -3.5 -5.00.05.010.015.020.025.030.035.040.045.050.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Real Estate Comp -3.08 43.50 -0.08 R Wilshire RESI Index -2.84 43.92 -0.08 1 91-Day Treasury Bill 0.52 0.24 0.00 T Item # 4 182 Attachment number 2 Page 187 of 200 City of Clearwater Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/10 35% 30% R 1 25% 1 R 20% R 1 15% 10% 1 R 5% 0% -5% -10% -15% LastLast 2Last 3Last 4 QtrQtrsQtrsQtrs High10.1326.0021.4730.11 1st Qt6.6720.3617.4418.66 Median4.9011.3414.3315.49 3rd Qt3.468.839.1710.65 Low-1.41-1.90-5.41-12.72 Real Estate Comp R Net Ret6.9920.9817.8230.51 Rank2122203 Wilshire RESI Index 1 Net Ret8.1822.5017.0929.12 Rank1216276 Item # 4 183 Attachment number 2 Page 188 of 200 City of Clearwater Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 40% 30% R 1 1 R 20% 10% 0% -10% -20% -30% -40% -50% 20102009 High30.1136.12 1st Qt18.66-5.52 Median15.49-28.27 3rd Qt10.65-30.79 Low-12.72-45.55 Real Estate Comp R Net Ret30.5124.68 Rank313 Wilshire RESI Index 1 Net Ret29.1229.20 Rank610 Item # 4 184 Attachment number 2 Page 189 of 200 City of Clearwater Security Capital as of 12/31/10 Portfolio Performance (%) 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 QtrYTD1 Year3 Year5 Year10 YearIncept 4/30/08 Security CapitalWilshire RESI Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 4/30/08 Security Capital7.8931.6231.62-2.78 Wilshire RESI 8.1829.1229.12-2.84 Asset Growth ($000) Beginning Market Value60,71249,77049,77019,347 Net Contributions & Withdrawals-22,000-22,000-22,000-22,000 Gain/Loss + Income3,16814,10914,10944,533 Ending Market Value41,87941,87941,87941,879 Item # 4 185 Attachment number 2 Page 190 of 200 City of Clearwater Security Capital as of 12/31/10 Asset Allocation ($000) Cash & Equiv $904 2.16% Real Estate $40,976 97.84% Risk/Return Analysis (Number of returns < 12) Periods from 6/08 to 12/10 AlphaN/A BetaN/A R-SquaredN/A 1.0 0.5 T 0.0 -0.5 -1.0 -1.5 -2.0 -2.5 s 1 -3.0 -5.00.05.010.015.020.025.030.035.040.045.050.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Security Capital -2.78 43.53 -0.08 s Wilshire RESI -2.84 43.92 -0.08 1 91-Day Treasury Bill 0.52 0.24 0.00 T Item # 4 186 Attachment number 2 Page 191 of 200 City of Clearwater Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/10 35% s 30% 1 1 s 25% 20% 15% 10% 1 s 5% 0% -5% -10% -15% -20% -25% -30% -35% LastLastLast 2 QtrYearYears High10.1330.1130.79 1st Qt6.6718.667.90 Median4.9015.49-9.17 3rd Qt3.4610.65-11.76 Low-1.41-12.72-32.33 Security Capital s Net Ret7.8931.6228.10 Rank13114 Wilshire RESI 1 Net Ret8.1829.1229.16 Rank12610 Item # 4 187 Attachment number 2 Page 192 of 200 City of Clearwater Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 40% s 30% 1 1 s 20% 10% 0% -10% -20% -30% -40% -50% 20102009 High30.1136.12 1st Qt18.66-5.52 Median15.49-28.27 3rd Qt10.65-30.79 Low-12.72-45.55 Security Capital s Net Ret31.6224.68 Rank113 Wilshire RESI 1 Net Ret29.1229.20 Rank610 Item # 4 188 Attachment number 2 Page 193 of 200 City of Clearwater Multi Employer Property Trust as of 12/31/10 Portfolio Performance (%) 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 QtrYTD1 Year3 Year5 Year10 YearIncept 9/30/10 Multi Employer Property TrustNCREIF ODCE Incept Net of Fee ReturnsQtrYTD1 Year3 Year5 Year10 Year 9/30/10 Multi Employer Property Trust4.724.72 NCREIF ODCE 4.994.99 Asset Growth ($000) Beginning Market Value00 Net Contributions & Withdrawals20,00020,000 Gain/Loss + Income944944 Ending Market Value20,94420,944 Item # 4 189 Attachment number 2 Page 194 of 200 City of Clearwater Multi Employer Property Trust as of 12/31/10 Asset Allocation ($000) Cash & Equiv $2 0.01% Real Estate $20,941 99.99% Risk/Return Analysis (Number of returns < 12) Periods from 9/10 to 12/10 AlphaN/A BetaN/A R-SquaredN/A 5.5 5.0 1 M 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 T -0.5 -1.00.01.02.03.04.05.06.07.08.0 Annualized Standard Deviation% AnnualizedStd. SharpeInfo Net Ret Dev.RatioRatio Multi Employer Property 4.72 6.67 0.70 M NCREIF ODCE 4.99 7.06 0.70 1 91-Day Treasury Bill 0.04 0.06 0.00 T Item # 4 190 Attachment number 2 Page 195 of 200 City of Clearwater Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/10 11% 10% 9% 8% 7% 6% 5% O M 4% 3% 2% 1% 0% -1% -2% Last Qtr High10.13 1st Qt6.67 Median4.90 3rd Qt3.46 Low-1.41 Multi Employer Property Trust M Net Ret4.72 Rank54 NCREIF ODCE Fund Index O Net Ret4.99 Rank46 Item # 4 191 Attachment number 2 Page 196 of 200 City of Clearwater Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 35% 30% 25% 20% O 15% 10% 5% 0% -5% -10% -15% 2010 High30.11 1st Qt18.66 Median15.49 3rd Qt10.65 Low-12.72 NCREIF ODCE Fund Index O Net Ret16.36 Rank44 Item # 4 192 Attachment number 2 Page 197 of 200 Item # 4 Attachment number 2 Page 198 of 200 Item # 4 Attachment number 2 Page 199 of 200 Item # 4 Attachment number 2 Page 200 of 200 Item # 4 4/18/2011 Meeting Date: Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the recommended administrative expenditures budget for Fiscal Year 2011-12, totaling $335,500. SUMMARY: The Employees’ Pension Plan does not have a legal requirement to have a budget. The Trustees must approve all expenditures. The following are routine expenditures that staff is requesting approval for the sake of efficiency. Printing and binding is for the statutorily required annual information distribution to the members of the pension plan. Postage is required mailings. Membership dues are for the annual dues for the Florida Public Pension Trust Association. Training and travel are for the estimated costs of training required by state statute. This is a not-to-exceed amount since we do not know which Trustees and Pension Advisory Committee members will elect to attend conferences. The total paid for training and travel for FY10 was $3,136 and for FY11 YTD is $576. Reimbursement to the General Fund is for the cost of the oversight of the Plan and is recognized as revenue to the General Fund. This reimbursement covers the services provided by Human Resources, Payroll, and Finance. Klausner and Kaufman is the Plan’s pension attorney firm. Annual attorney’s fees also include medical bills that are for the medical services authorized by the Pension Advisory Committee. Total paid in FY10 was $71,942 and FY11 YTD is $60,166. At this time, staff is budgeting for a Referendum next year. This referendum is for proposed changes to the pension plan. Money manager, safekeeping, actuary, and pension administration fees are all set by contracts approved by the Trustees and are not included in this budget. Operating Expenditure Type: NoneNone Current Year Budget?:Budget Adjustment: Budget Adjustment Comments: Current Year Cost:Annual Operating Cost: Cover Memo $335,500 Not to Exceed:Total Cost: Item # 5 2011 to 2012 For Fiscal Year: Appropration CodeAmountAppropriation Comment 646-07410 $335,500 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Review Approval: Cover Memo Item # 5 Attachment number 1 Page 1 of 1 City of Clearwater Employees' Pension Plan Administrative Expenses Budget Increase/ Fiscal Year Description2011/20122010/2011(Decrease) Printing & Binding$ 400$ 400 -$ Postage 400 400 - Memberships 600 600 - Misc 100 100 - Training 5,000 5,000 - Travel Expense 3,000 3,000 - Physicals 30,000 36,000 (6,000) Reimbursement to General Fund (Human Resources)49,000 45,000 4,000 Reimbursement to General Fund (Accounting & Finance)19, 000 21,000 (2,000) Reimbursement to General Fund (Payroll)73,000 70,000 3,000 Pension Attorney 140,000 140,000 - Referendum 15,000 15,000 - Totals $ 335,500$ 336,500$ (1,000) Item # 5