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04/16/20121. Call to Order 2. Approval of Minutes PENSION TRUSTEES AGENDA Location: Council Chambers - City Hall Date: 4/16/2012- 1:00 PM 2.1 Approve the minutes of the March 12, 2012 Pension Trustees meeting as submitted in written summation by the City Clerk. � Attachments 3. Pension Trustee Items 3.1 Approve the new hires for acceptance into the Pension Plan as listed. 6� Attachments 3.2 Approve the request of employee Michael Kaelin, Marine and Aviation Department; Richard Albee, Planning and Development Department; James Rores, Library Department; and James Jerkins, Gas Department, for a regular pension as provided by Sections 2397 and 2.398 of the Employees' Pension Plan. 6� Attachments 3.3 Approve the request of employee Dennis Allen, Solid Waste/General Services Department, to vest his pension as provided by Section 2.397 of the Employees' Pension Plan. 6� Attachments 3.4 Annual review of the Employees' Pension Plan investment performance for the year ending December 31, 2011. L� Attachments 4. Other Business 5. Adjourn Pension Trustees Agenda Council Chambers - City Hall Meeting Date:4/16/2012 SUBJECT / RECOMMENDATION: Approve the minutes of the March 12, 2012 Pension Trustees meeting as submitted in written summation by the City Clerk. SUMMARY: Review Approval: Cover Memo ��11�:�) Attachment number 1 \nPage 1 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES CITY OF CLEARWATER �� � � � Present Also Present Unapproved Chair/Trustee George N. Cretekos, Trustee Paul Gibson, Doreen Hock-DiPolito, Trustee Bill Jonson, and Trustee � Polglaze- William B. Horne II - City Manager, Jill S. Sil�r� Manager, Rod Irwin - Assistant City Manager;; Attorney, Rosemarie Call - City Clerk, and Nic Records and Legislative Services Coordinator To provide continuity for research, items are necessarily discussed in that order. __ Call to Order — Chair George N. The meeting was called to ord minutes of the February 13, 2012 Pension ummation by the City Clerk. The motion was nce into the Pension Plan as listed. James Halios, Landscape Maint. Coord./Parks & Rec. 1/3/12 Lanette Richards, Utilities Chemist/Public Utilities 1/3/12 Pension Trustees 2012-03-12 1 /3/12 1 /3/12 1 Item # 1 Attachment number 1 \nPage 2 Trustee Doreen Hock-DiPolito moved to approve the new hires for acceptance into the Pension Plan as listed. The motion was duly seconded and carried unanimously. 3.2 Approve the request of emplovee Thomas Lonq, Parks and Recreation the Emplovees Pension Plan. Thomas Long, Tradesworker, Parks and Recreation D by the City on June 30, 1990, and his pension service date. His pension will be effective April 1, 2012. Based on an average salary of approximately $44,751 p�r:yE years, the formula for computing regular pensions, and Mr. L 100% Joint & Survivor Annuity, this pension will approximate Section 2.397 provides for normal retirement eligibility w; completed thirty years of credited service; has reached ,� twenty years of credited service, or has reached age 65" of credited service. Mr. Long qualifies'under the age 5� service criteria. Trustee Jay E. Polglaze move�! t+o approve the reques# of emp Parks and F���reation Departmenf; for a regular pensi4n as pr� and 2.39� c�f the Employees Pension Plan. The mQtion was e 3.3 Aaprove the •��c I"iY�� Louise Schult, Poli the City on May 18 date. Ms. Schult te� ent, was �rnplc�ye� � effectiue on that ar c�ver the past fi� ing's selection of 1 $25,72� annually. a partic 55 and � complE I twenty as rs 'hQrnas Long, by Sections 2.397 ;onded and carried r�� L�uise Schult, Police Department, to vest her n 2.397 of the Emplovees Pension Plan. rvice Technician, Police Department, was employed by , and began participating in the Pension Plan on that ed from City employment on December 19, 2011. The Employe�:�' Pension Plan provides that should an employee cease to be an �mpl�yee c�fi tk�e �ity of Clearwater or change status from full-time to part-time aft�r com�leting ten or more years of creditable service (pension participation), such ernp�oyee shall acquire a vested interest in the retirement benefits. Vested pension payments commence on the first of the month following the month in which the employee normally would have been eligible for retirement. Pension Trustees 2012-03-12 2 Item # 1 Attachment number 1 \nPage 3 Section 2.397) provides for normal retirement eligibility when a participant has reached age 55 and completed twenty years of credited service, has completed 30 years of credited service, or has reached age 65 and completed ten years of credited service. Ms. Schult would have completed at least 10 years of service and reached age 65 on May 8, 2013. Her pension will be effective June 1, 2013. Trustee Paul Gibson moved to approve the request of employee Louise Department, to vest her pension as prov Pension Plan. The motion was duly sec� �' � . �.. The meeting was adjourned at 1:08 p.m. Attest City Clerk Pension Trustees 2012-03-12 3 Item # 1 Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the new hires for acceptance into the Pension Plan as listed. SUMMARY: Name, Job. Class, & Dept./Div Pension Hire Date Eli�. Date Jennifer Haynes, Accounting Technician/Engineering 1/30/12 1/30/12 James McQuoid, Field Service Representative/Cust. Ser. 1/30/12 1/30/12 Connie Meade, Police Communications Operator/Police 1/17/12 1/17/12 Patricia Deeran, Customer Service Rep./Customer Service 1/17/12 1/17/12 Kyle Vaughan, Survey AssistantBngineering 9/3/11 1/16/12* *originally hired as part-time on 9/3/11; promoted to full-time and pension eligible as of 1/16/12 Review Approval: Meeting Date:4/16/2012 Cover Memo ��11�:�� Pension Trustees Agenda Council Chambers - City Hall Meeting Date:4/16/2012 SUBJECT / RECOMMENDATION: Approve the request of employee Michael Kaelin, Marine and Aviation Department; Richard Albee, Planning and Development Department; James Rores, Library Department; and James Jerkins, Gas Department, for a regular pension as provided by Sections 2397 and 2398 of the Employees' Pension Plan. SUMMARY: Michael Kaelin, Tradesworker, Marine and Aviation Department, was employed by the City on June 5, 1986, and his pension service credit is effective on November 17, 1987. His pension will be effective March 1, 2012. Based on an average salary of approximately $47,042 per year over the past five years, the formula for computing regular pensions, and Mr. Kaelin's selection of the Joint & Survivor Annuity, this pension will approximate $31,414 annually. Richard Albee, Land Resources Specialist, Planning and Development Department, was employed by the City on March 22, 1982, and his pension service credit is effective on that date. His pension will be effective April 1, 2012. Based on an average salary of approximately $55,394 per year over the past five years, the formula for computing regular pensions, and Mr. Albee's selection of the 100% Joint & Survivor Annuity, this pension will approximate $44,792 annually. James Rores, Library Assistant, Library Department, was employed by the City on February 25, 1986, and his pension service credit is effective on that date. His pension will be effective March 1, 2012. Based on an average salary of approximately $33,348 per year over the past five years, the formula for computing regular pensions, and Mr. Rores' selection of the 10-year Certain & Life Annuity, this pension will approximate $23,181 annually. James Jerkins, Engineering Technician, Gas Department, was employed by the City on March 9, 1987, and his pension service credit is effective on that date. His pension will be effective April 1, 2012. Based on an average salary of approximately $44,693 per year over the past five years, the formula for computing regular pensions, and Mr. Jerkins' selection of the 100% Joint & Survivor Annuity, this pension will approximate $29,804 annually. Section 2397 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. Mr. Kaelin, Mr. Rores, and Mr. Jerkins qualify under the age 55 and twenty years of service criteria. Mr. Albee quali�es under the 30 years of service criteria. Review Approval: Cover Memo ��11�:�� Attachment number 1\nPage 1 o C/TY QF �LEAfi!lt/A TER E/C//PL O VEES' SEPARA T/ON PA Y PREFERENCES PREFERENCE #� Employees can receive a lump sum payment for vacation, floating holiday pay, sick leave incentive, bonus days (if applicable), and 1/2 of accrued sick leave at the time of separation from the City. There will be no deduction for pension from this lump sum payment nor will this amount count as earnings in the calculation of the pension. The last day of work will be the termination date and pension benefits will begin the following month. PREFERENCE #2 Employee can extend termination date by part or all of the time due for --- -�------vacation, oating o i ay pay, sic eave mcen ive, onus ays i-apprica e,--- and 1/2 of accrued sick leave. Employee may choose to run out this time in any manner. Balanee will be paid in a fump sum on employee's finaf paycheck. Termination date wifi be the finai day of extended time. Pension benefits will begin the foliowing month. ��� �-_.... i_ �--_._�--_ i ���G1�f�e ae-�� n , an empioyee of the Ciiy oi Ciearwaier, hereby appiy ioi pension benefits under the City's Empfoyees' Pension Plan_ I hereby certify that I fuliy understand the preferences offered to me. I choose to retire using separation pay preference # � and wish my benefits to be calculated under this preference. Please use my leave in the following manner: Run Out vacation sick floaters bonus hours Lump Sum 1�S' � 1 vacation 5��°��sick �_� fioaters �� D bonus hours i understand that my preference cannot be changed once this form is signed and that my decision is irrevocable. ` � �+ � i � Revised ti02 Form #9900-0008 EMPLOYEE'S SIGNATURE: ������������� SOCIAL SECURITY #: ADDRESS: '� `� � $ e " `� n �� - � a J t� �3 � � PHONE: �a � � � � � � � r � � DATE: ���� �a�'(�`l$--aS�1. File Name: Employee Separation Pay Pref 3 �i �ilt Item # 3 CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM I� � � � IrGVlfxe.� �0.�� 1Y1. of Clearwater General Employees' Pension Plan. �� Job Classifica Department: � Benefits Date: Date of Birth: Spouse's Name: Spouse's Date of Birth: � N A- ✓k,f✓ do hereby apply for retirement under the City _ uivision: Date of Hire: Resignation Date The type of pension for which I am applying is (check only one): X Regular Pension based on years of service Job-connected Disability Pension Non-job-connected Disability Pension Sex: M� F Sex: M F The City of Clearwater Employees' Pension Pian provides multiple options to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normal form of retirement benefit. The other optional forms (#2 -#6) shall be computed to be the Actuarial Equivalent of the normal benefit. Option 1- Joint and Survivor Annuity The normal form of retirement benefit shall be an annuiry paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following the death of the Participant to the beneficiary, provided that following such five year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount. [See section 2.397 (a) (3) (A)] The ParticipanYs surviving spouse receives the designated amount for the rest of his/her life or until he/she remarries. If no surviving spouse, dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [Section 2.397 (a) (3) and Section 2.398 (b) (1)] Option 2 - Life Annuity The Participant receives his/her pension as long as he/she lives. Upon the death of the Participant, benefits cease. [Section 2.398 (b) (2) (a) (1)] Option 3-10 Year Certain & Life AnnuitV -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies before 120 monthly payments have been made, the remaining payments up to the 120 payments are made to his/her beneficiary. If payments to the beneficiary commence and he/she dies before the total of 120 payments has been made, the remainder of the payments is paid to the beneficiary's estate. If the first beneficiary predeceases the participant, he/she may designate a new beneficiary. If no beneficiary is alive at the time of the participanYs death, the participant's estate will be paid the balance of the 120 payments. [Section 2.398 (b) (2) (a) (2)] Option 4- 50°/a Joint 8 Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 50% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] Option 5- 75% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 75% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100°/a of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] I�:�a Option 6-100% Joint 8� Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 100% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (Z) (a) (3)] I have considered the norma! form of benefit payment under such Plan (which is designated on this Form as Option 1) and the various alternative optional benefit payment methods (Options 2 through 6) under such Plan and have elected to receive my retirement benefits as indicated below. (Note: Option selection to be indicated both by Number and Description.) I understand that once my first pension check is received, my decision on this option is irrevocable. If taking Option 1 sign below: Option #: 1 Description: Joint and Survivor Annuitv Employee's Signature: �____���i�i�+ar� �./�� Date: I q � Dependent children under the age of 18 and residing in my household are: Child's Name Sex Date of Birth If taking Option 2 Option #: 2 Employee's Signature: below: Description: Life Annuitv If taking Option 3, 4, 5, or 6 fill in beneticiary intormation and Option #: Description: My designated beneficiary is: Name: Date of Birth: Social Security Number: Address: Employee's Signature: STATE OF FLORIDA COUNTY OF PINELLAS Rev. 4/08 Form #9900-0009 Date: de�ow: Sex M F Phone Number: Date: The fore oin instrument was acknowledged before me this 02 � l� by ��c.hCtC� ��G���i�� whois personally known to me or who has provided as identif� a ion d who did/ � n t t� e� Notary Public My Commissior��L�C-SrATEOF'FLORIDA „��,,,,� � pr . ;��` Commission # DD763426 .= Expires: MAY 15, 2012 $p'�""� •�gU pZ7,(uyTIC BOA'DL^7G CO., INC. Name of Notary Printed File Name: Pension Entitlement Option Form Item # 3 Michael Kaelin LAST DATE PAI D: BENEFITS DATE CREDITED SERVICE Estimated Pension Worksheet 2/29/2012 11 /17/1987 24.2833 Prepared by: Deborah Ford Date: 2/9/12 GROSS CALENDAR PENSION YEAR EARNINGS 2007 $46,097.02 2008 $46,385.18 2009 $47,743.67 2010 $47,342.78 2011 $47,642.78 $235,211.43 (5 Year Total) 5/ $47,042.29 (Yearly Avg) 12/ $3,920.19 (Monthly Avg) x 0.0275 (Benefit Rate) x 24.2833 (Yrs of Service) $2,617.87 (Est Mtly Pension) I[�'ii�:�c3 PREFERENCE # � C/TY aF eL�ARUtfAlER EMPL OYEES' SEPARA TfOEI/ PA Y PREFERENCES Employees can receive a lump sum payment for vacation, fioating holiday pay, sick leave incentive, bonus days (if applicable?, and 1/2 of accrued sick leave at the time of separation from the City. There will be no deduction for pension frQm__this__lump 5um _payment nor wili this amount count as earnings in the --_- __ _ _. ____ calculation of the pension. The last day of worfc wifl be the termination da�e and pension benefits will begin the foflowing month. PREFERENCE #2 Employee can extend termination date by part or all of the time due for -- -- ------ vacation, oating o i ay pay, sic eave incen ive, onus ays i apprica e,--- - and 1/2 of accrued sick leave. Employee may choose to run out this time in any manner. Balance will be paid in a lump sum on employee's final paycheck. Termination date will be the final day of extended time. Pension benefits will begin the following month. �, ►�G�� '���--. an empioyee of the Ciiy oi �iearwaier, hereby app�y for pension benefits under the City's Employees' Pension Plan. I hereby certify that l fully understand the preferences offered to me. I choose to retire using separation pay preference # � and wish my benefits to be calculated under this preference. Piease use my leave in the following manner: Run Out vacation sick floaters bonus hours Lump Sum 7�' ���vacation ��y' ��"sick a°�- S floaters �'la�S bonus hours f understand that my preference cannot be changed once this form is signed and that my decision is irrevocable. J���^� ��.. EMPLOYEE'S SIGNATURE: � SOCIAL SECURITY #: W NESSES• ADDRESS: Revised i r02 Form ii9900-0008 �'ev�f. �� _��2� �� �,m t� v� o r � 3`� t� �'_.S' PHONE: ��q 3�i �I �7 S'J DATE: �� �� I� File Name: Employee Separation Pay Pref Item # 3 CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM �, K�`c.�l�► a r ck 1� 1�'� of Clearwater General Employees' Pension Plan. _ __ Job Classific� Department: _ Benefits Date: Date of Birth: do hereby apply for retirement under the City Spouse's Name: Spouse's Date of Birth: � vr�Cr�'t�• Division: Date of Hire: � Resignation Date: ���'P The type of pension for which I am applying is (check only one): i� Regular Pension based on years of service Job-connected Disability Pension Non job-connected Disability Pension Sex: M � The City of Clearwater Employees' Pension Plan provides multiple options to Ptan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normal form of retirement benefit. The other optional forms (#2 -#6) shall be computed to be the Actuarial Equivalent of the normal benefit. Option 1- Joint and Survivor Annuitv The normal form of retirement benefit shall be an annuity paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following the death of the Participant to the beneficiary, provided that following such five year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount. [See section 2.397 (a) (3) (A)] The ParticipanYs surviving spouse receives the designated amount for the rest of his/her life or until he/she remarries. If no surviving spouse, dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [Section 2.397 (a) (3) and Section 2.398 (b) (1)] Option 2 - Life Annuitv The Participant receives his/her pension as long as he/she lives. Upon the death of the Participant, benefits cease. [Section 2.398 (b) (2) (a) (1)] Option 3-10 Year Certain � Life Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies before 120 monthly payments have been made, the remaining payments up to the 120 payments are made to his/her beneficiary. If payments to the beneficiary commence and he/she dies before the total of 120 payments has been made, the remainder of the payments is paid to the beneficiary's estate. If the first beneficiary predeceases the participant, he/she may designate a new beneficiary. If no beneficiary is alive at the time of the participanYs death, the participanYs estate will be paid the balance of the 120 payments. [Section 2.398 (b) (2) (a) (2)] Option 4- 50% Joint 8� Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 50% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] Option 5- 75% Joint 8� Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 75°/a of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of hisJher pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] Item # 3 Option 6-100% Joint & Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 100% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] I have considered the normal form of benefit payment under such Plan (which is designated on this Form as Option 1) and the various alternative optional benefit payment methods (Options 2 through 6) under such Plan and have elected to receive my retirement benefits as indicated below. (Note: Option selection to be indicated both by fVamber a��3escripHer�.} _ __ _ ___ ___ . ._ _ _ __ I understand that once my first pension check is received, my decision on this option is irrevocable. If taking Option 1 sign below: Option #: 1 Description: Joint and Survivor Annuity Employee's Signature: Date: Dependent children under the age of 18 and residing in my household are: Child's Name Sex Date of Birth If taking Option Z sign below: Option #: 2 Description: Life Annuity Employee's Signature: Date: If takin O tion 3, 4, 5, or 6 fill in beneficia information and si n below: Option #: !� Description: I� o J� i"n '►- v r v���J c� � My designated beneficia is: Name: �-i �'S ��1 J9-( ��-�e_ Date of Birth: �i I 1� lS � Sex M Social Security Number: Phone Address: � �S' � � �-Cl �� I'�- l�-�, � ��, � r v,-, i C� 3 y��-s' Employee's Signature: � Number: '��-�7 9 3�_ I 7S% �v STATE OF FLORIDA � The fore oing i strufnent wa cknowledged before me this COUNTY OF PINELLAS � � V �� by �► L� G�G� /`i� I!'� �� who is personally known to me or who has provided as ide ti ati�n and whq,did/didA,ot,tak�an o�h. Rev. 4/08 Form #9900-0009 !/i' r — ` 1 _ T=� .� Notary Public Name of Notary Printed My Commission expires: NOTARY PUBLIC-STATE OF FI,ORI,^,:� ""'•• Deborah L. Ford �j= Commission # DD7b3426 •,,'`,�•:` Fx�ires: MAY 15, 2 ,2 BONDIDTHI2UA'CI.AN1'ICBO\"DINGCO.,�r� Name: Pension Entitlement Option Form �Il�:�j Estimated Pension Worksheet Rick Albee _ _ _-__ ._ _ _ __ _ LAST DATE PAID: BENEFITS DATE CREDITED SERVICE 3/22/2012 3/22/1982 30.0000 Prepared by: Deborah Ford Date: 2/10/12 . ___ _. ___ __ __ ___ GROSS CALENDAR PENSION YEAR EARNINGS 2007 $53,544.93 2008 $55,145.15 2009 $56,874.27 2010 $55,503.76 2011 $55,903.76 $276,971.87 (5 Year Total) 5/ $55,394.37 (Yearly Avg) 12/ $4,616.20 (Monthly Avg) x 0.0275 (Benefit Rate) x 30.0000 (Yrs of Service) $3,808.37 (Est Mtly Pension) [iair�:�3 Attachment number 1\nPage 9 01 City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors 10-Feb-12 sm ESTIMATE clract0l _ _ _ _ _ _ _ _ _ _ _ _�lersion: _ _ _ _ Employee Name: Rick Albee 1-4-96 Employee Date of Birth: 3 23 1957 Marital Status: m Spouse Date of Birth: 7 16 1959 Beneficiary Date of Birth: 7 16 1959 Benefit Commencement Date : 4 1 2012 Estimated Monthly Normal Retirement Benefit: $3,808.37 Estimated Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 Actuarial Equivalent Adjustment Factors: J&S Annuity 1.00000 Life Annuity 1.08833 10 Year Certain 1.07264 50% J&S 1.03139 75% J&S 100°lo J&S ESTIMATE 1.00510 0.98011 Monthly Benefit $3,808.37 $4,144.77 $4,085.00 $3,927.92 $3,827.79 $3,732.63 Item # 3 C/�Y OF �L�A:Ri/V�4lER -- __-- Attachment number 1 \nPage 10 EMPLOI�EES' SEPARATIOfV PAY PREFERENCES PREFERENCE #1 Empfoyees can receive a fump sum payment for vacation, floating holiday pay, sick leave incentive, bonus days (if applicable), and 1/2 of accrued sick leave at the time of separation from the City. There will be no deduction for pension from this lump surn payment nor will this amount count as earnings in the calculation of the pension. The last day ot work will be the termination date and pension benefits will begin the foflowing month. PREFERENCE #2 Employee can extend termination date by part or all of the time due for ��— �---- vacation, oating o i ay pay, sic eave incen ive, onu�ays Ci apprica e,-- and 1/2 of accrued sick leave. Employee may choose to run out this time in any manner. Balance will be paid in a lump sum on employee's final paycheck. Termination date will be the final day of extended time. Pension benefits will begin the following month. ..r, - �<- i, �Q �r1 �S 0�� , an empioyee of the Ciiy oi Ciearwaier, hereby appiy �oi pension benefits under the City's Employees' Pension Pian. I hereby certify that f fully understand the preferences offered to me. I choose to retire �sing separation pay preference #.—__� and wish my benefits to be calculated under this preference. Please use my leave in the following manner: Run Out vacation sick Lump Sum 9�' l� vacation � S • S sick floaters bonus hours floaters � bonus hours I understand that my preference cannot be changed once this form is signed and that my decision is irrevocable. t EMPLOYEE'S SIGNATURE: � �� SOCIAL SECURITY #: WI NESSES: ADDRESS: � a� ,�"����� `�!�')Q° �(�P- � ��i��-� ._.JU c'I l° ' ✓ ��,, c� �% � �c� PHONE: �f � 7 ( 7� � �l �S''�'' l _ DATE: ��/S���Z Revised 1 i02 Form �9900-0008 File Name: Employee Seoaration Pay Pret Item # 3 - - - Attachment number 1_\nPage 11 � CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM �� �1A�✓11�5 �0✓cS _�f Clearwater Gener�l_ Employe.es' Pension Plan. Job Classification: Department: Benefits Date: _ Date of Birth: �,' SIS�I�")f" do hereby apply for retirement under the City Sex: M� F •<-� be� ' v� �-/ Qivision: ��s_ (�_ Date of Hire: � a.S ff` o/ S 5 o Resignation Date: �' ��. . Spouse's Name: Spouse's Date of Birth: � The type of pension for which I am applying is (check only one): x- Regular Pension based on years of service Job-connected Disability Pensio� Non job-connected Disability Pension Sex: M F The City of Clearwater Employees' Pension Plan provides multiple options to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normal form of retirement benefit. The other optionai forms (#2 -#6) shall be computed to be the Actuarial Equivalent of the normal benefit. Option 1- Joint and Survivor Annuity The normal form of retirement benefit shall be an annuiry paid monthly far the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following the death of the Participant to the beneficiary, provided that following such five year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount. [See section 2.397 (a) (3) (A)] The ParticipanYs surviving spouse receives the designated amount for the rest of his/her life or until he/she remarries. if no surviving spouse, dependent children under the age of 18 shali be deemed to be the beneficiary and receive the designated amount until the age of 18. [Section 2.397 (a} (3} and Section 2.398 (b) (1)] Option 2 - Life Annuitv The Participant receives his/her pension as long as he/she lives. Upon the death of the Participant, benefits cease. [Section 2.398 (b) (2) (a) (1)] Option 3-10 Year Certain & Life Annuity -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies before 12d monthly payments have been made, the remaining payments up to the 120 payments are made to his/her beneficiary. If payments to the beneficiary commence and he/she dies before the total of 120 payments has been made, the remainder of the payments is paid to the beneficiary's estate. If the first beneficiary predeceases the participant, he/she may designate a new beneficiary. If no beneficiary is alive at the time of the participant's death, the participanYs estate will be paid the balance of the 120 payments. [Section 2.398 (b) (2) (a) (2)j Option 4- 50°!o Joint & Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. !f the Participant dies first, the beneficiary receives 50% of the pension for the rest of his/her life. If the beneflciary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] Option 5- 75% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. ff the Participant dies first, the beneficiary receives 75% of the pension for the rest of hislher life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon hislher death, benefits cease. [Section 2.398 {b) (2) (a) (3)J I[�'ii�:�c3 Option 6-100% Joint 8� Survivor Artnuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 100% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] 1 have considered the normal form of benefit payment under such Plan (which is designated on this Form as Option 1) and the various alternative optional benefit payment methods (Options 2 through 6) under such Plan and have elected to receive my retirement benefits as indicated below. (Note: Option selection to be indicated both by __ _ __ _ _ _ Number and Description.) I understand that once my first pension check is received, my decision on this option is irrevocable. If takina Oqtion 1 siqn below: Option #: 1 Description: Joint and Survivor Annuitv Employee's Signature: Date: Dependent children under the age of 18 and residing in my household are: Child's Name Sex Date of Birth if iaking Option 2 sign below: Option #: 2 Employee's Signature: If taking Option 3, 4, 5, Option #. �3 Description: Life Annuity Date: or 6 fill in beneficiary information and sign below: Description: ! G - Y,P� � (. ° e ✓ l�Gc.�'n � My desgi nat d benefi iary is: Name: Na�� �k �p� �"'�av►`^ Date of Birth: � y t� Sex�l F Snr.ial Ser.uritv NumbPr• Phone Number: Address: �a-7 �7.3 �r �i�/. Employee's Signature: � STATE OF FLORIDA COUNTY OF PINELLAS Rev. 4/08 Form #9900-0009 Date: c� l zS � r2. The foreg ing i trument was acknowledged bef re me this � ! /S /� by � �'1�S �Clr/�S who is personally known to me or who has provided as iden �� atio and who did/ i no t e an ath. Notary Public --��ignature) O�t�..f, � - /�''� Name of Notary Printed My Commission e��Y "'"'° Deborah L. T'ord : Couauzi,sion # L�1�75342n `ti•.,,�,,.•-'' Expires: Ai�Y 15, 2012 IIONDED THAU ATLAIy'I"iC 14(];s'�1G11�r CJ,� ��+, File Name: Pension Entitlement Option Form Item # 3 .fames Rores LAST DATE PA1D: BENEFITS DATE CREDITED SERVICE Estimated Pension Worksheet 2/29/2012 2/25/1986 26.0111 Prepared by: Deborah Ford Date: 2/15/12 - - Attachment number 1\nPage 13 � GROSS CALENDAR PENSION YEAR EARNINGS 2007 $32,532.45 2008 $32,880.95 2009 $33,803.35 2010 $33,612.70 2011 $33,912.70 $166,742.15 (5 Year Tota�) 5/ $33,348.43 (Yearly Avg) 12/ $2,779.04 (Monthly Avg) x 0.0275 (Benefit Rate) x 26.0111 (Yrs of Service) $1,987.86 (Est Mtiy Pension) Item # 3 City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors ESTIMATE 15-Feb-12 sm clract01 Version: Empfoyee Name: James Rores 1-4-96 Employee Date of Birth: 10 15 1950 Marital Status: s Spouse Date of Birth: Beneficiary Date of Birth: 3 2 1946 Benefit Commencement Date : 3 1 2012 Estimated Monthly Normal Retirement Benefit: $1,987.86 Actuariat Equivalent Adjustment Factors: Option 1 J&S Annuity 1.00000 Option 2 Life Annuity 1.00000 Option 3 10 Year Certain 0.97179 Option 4 50% J&S 0.95276 Option 5 75% J&S 0.93078 Option 6 100% J&S 0.90978 ESTIMATE Attaehment number 1\nPage 14 � Estimated Monthly Benefit $1,987.86 - $1,987.86 $1,931.78 $1,893.96 � $1,$50.25 _ $1,808.52 Item # 3 �'/�}r �� ��i�..Q��f.�i ��f� E/E/IPL O►�EES' SEPARA Tl`Oflf P,4 l� PREFERENCES _ _ __ Attachment number 1\nPage 15 � PREFERENCE #� Employees can receive a lurr�p sum payrnent for vacation, floating hoJiday pay, sick leave incentive, bonus days (if applicable), and 1/2 of accrued sick leave at the time of separation from the City. There will be no deduction for pension from this lump sum .payment nor will this amount count as earnings in the calculation of the pension. 7he last day of work will be the termination date and pension benefits will begin the following month. PREFERENCE #2 Employee can extend termination date by part or all of the time due for �� --- —�-- vacation, oating o i ay pay, sic eave incen ive, onus a s i a tica Y PP �eT--- -- and 1/2 of accrued sick leave. Employee may choose to run out this time in any manner. Balance will be paid in a lump sum on employee's final paycheck. Termination date will be the final day of extended time. Pension benefits will begin the following month. _ ��– i, 1J c� i'Y►�_S �-tl tVK��s �� , an empioyee of tt�e City oi Ciearwaier, i�ereby a�p�y �o� pension benefits under the City's Employees' Pension Plan. ! hereby certify that I fuliy understand the preferences offered to me. I choose to retire using separation pay preference #� and wish my benefits to be calculated under this preference_ Please use my leave in the following manner: Run Out 3 �' � vacation Lump Sum �1 • 7 vacation sick floaters bonus hours 3�'3.a� sick floaters ���� � bonus hours l understand that my preference cannot be changed once this form is signed and that my decision is irrevocable. EMPLOYEE'S SIGNATURE: SOCIAL SECURITY #: WI ESSES: ADDRESS: Revfsed 7 i02 Form i�9900-0008 � � �- 1 � �7` - � ���� C.-(�C. l' cY l�+ � �d ✓� �L y � � , /�- .� �-� PH�NE: %r�7 %�'`i�f���o7DATE: oZ�ad, I�L. File Name: Employee Separation Pay Pref Item # 3 �i7 Job Classification Department: Benefits Date: Date of Birth: Spouse's Name: Spouse's Date of Birth: _ Attachment number 1 \nPage 16 CITY OF CLEARWATER PENStON ENTti'LEMENT OPTION REQUEST FORM +/» cJ (r. do hereby apply for retirement under the City P�nsion_Plao._ _. ___ _ _ ___ _--- l��')f'(.°�`� ��1 jaCC_� Y1 I C/ Sex: � F Division: Date of Hire: 3 `� Resignation Date: U / V e Yk.% � Sex: M � The type of pension for which t am applying is (check only one): �.• Regular Pension based on years of service Job-connected Disability Pension Non-job-connected Disability Pension , The Ciry of Clearwater Employees' Pension Plan provides multiple options to Pian Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normal form of retirement benefit. The other optional forms (#2 -#6) shail be computed to be the Actuaria) Equivalent of the normal benefit. Option 1- Joint and Survivor Annuitv The normal form of retirement benefit shall be an annuity paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following the death of the Participant to the beneficiary, provided that fotfowing such five year period the survivor annuity shali be reduced to 5Q% of the original survivor annuity amount. [See section 2.397 (a) (3) (A)] 7he Participant's surviving spouse receives the designated amount for the rest of his/her life or until he/she remarries. If no surviving spouse, dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [Section 2.397 (a) (3) and Section 2.398 (b) (1)] Option 2 - Life Annuitv The Participant receives his/her pension as long as he/she lives. Upon the death of the Participant, benefits cease. [Section 2.398 (b) (2) (a) (1)] Option 3-10 Year Certain & Life Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies before 120 monthly payments have been made, the remaining payments up to the 120 payments are made to his/her beneficiary. If payments to the beneficiary commence and he/she dies before the total of 120 payments has been made, the remainder of the payments is paid to the beneficiary's estate. If the first beneficiary predeceases the participant, he/she may designate a new beneficiary. If no beneficiary is alive at the time of the participant's death, the participant's estate will be paid the balance of the 120 payments. [Section 2.398 (b) (2) (a} (2)) Option 4- 50% Joint & Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 50% of the pension for the rest of his/her life. lf the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2} (a} (3}] Option 5- 75% Joint 8 Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 75% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] Item # 3 Attachment number 1\nPage 17 � Optian 6-10Q%o Jo�r�t & S.urvivor A�r��ritY -(mus# ciesignate a beneficiaryj The Participant receives his/her pension as long as he/she lives. tf the Participant dies first, the beneficiary receives 1Q0% of the pension for the rest of his/her Iife. tf the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] 1 have considered the normal form of benefit payment under such Plan (which ts designated on this Form as Option 1) and the various altemative optional benefit payment methods (Options 2 through 6) under such Plan and have elected to receive my retirement benefits as indicated below. (Note: Option selection to be indicated both by — --------- - ----- ---- - , ---------------- ---- - -- Number and Description.) � I understand that once my first pension check is received, my decision on this option is irrevocable. If taking Option 1 sign below: Option #: 1 Description: Joint and Sunrivor Annuitv Employee's Signature: Date: Dependent children under the age of 18 and residing in my household are: Child's Name Sex Date of Birth if iaking Gpiian 2�i�� i�elovr: Option #: 2 Employee's Signature: Description: Life Ann Date: If takin O tion 3, 4, 5, or 6 tni �n penenc�a inrormacion ana si n peiow: Option#: (L_ Description: (}-C'f d a,'.� � uy My desi ate beneficiar�y..is:/ / /S � Name: �f�� � r�fl �C �k.+ n S. Date of Birth: �`� /� Sex M Social Security Number: _ � '' ' Phone Number: Address: S4 �' / �1 1�'1 `J `�'- Employee's Signature: STATE OF FLORIDA COUNTY OF PINELLAS Rev. 4/08 Form #9900-0009 __ l�, � ✓ v � �y d �a�/7�`!- �a�� Date: o� ��- The foreg ing in trument was acknowledged before mej this c�. 02 � by \l Lj ✓h �° S�\/ �t�6c � i� S, �i.who is personally known to me or who has provided as identification and who did/did not take an oath. �,�,.,..c� � `?�c.� � Notary Pubfic '— ( i aturE) ti:.►Y"ri�,, KlCommisgidn������ ��.� Expires January 6, 2013 �,P;;� e�an,�Tro,F��.�o.eoo�s�o�o ires: 0 Name of Notary Printed JOffJ'� + v�� ( � � Fite Name: Pension Entitlement Option Form Item # 3 James Jerkins LAST DATE PAI D: BENEFITS DATE CREDITED SERVICE Estimated Pension Worksheet 3/30/2012 3/9/1987 25.0583 Prepared by: Deborah Ford Date: 2/22/12 GROSS CALENDAR PENSION YEAR EARNINGS 2007 $43,851.53 2008 $44,144.50 2009 $45,383.21 2010 $45,093.00 2011 $44,992.89 estimated--base pay only $223,465.13 (5 Year Totai) 5/ $44,693.03 (Yearly Avg) 12/ $3,724.42 (Monthly Avg) x 0.0275 (Benefit Rate) x 25.0583 (Yrs of Service) $2,566.51 (Est Mtly Pension) I[�'ii�:�c3 City of Ciearwater Employees' Pension Ptan Actuarial Equivalence Factors ESTIMATE 22-Feb-12 sm clract01 Version: Employee Name: James Jerkins 1-4-96 Employee Date of Birth: 2 4 1948 Marital Status: m Spouse Date of Birth: 3 4 1952 Beneficiary Date of Birth: 3 4 1952 Benefit Commencement Date : 4 1 2012 Estimated Monthly Normal Retirement Benefit: $2,566.51 Actuarial Equivalent Adjustment Factors: Option 1 J&S Annuity 1.00000 Option 2 Life Annuity 1.15398 Option 3 10 Year Certain 1.10679 Option 4 50% J&S 1.05267 Option 5 75% J&S 1.00841 Option 6 100% J&S ESTIMATE 0.96772 Estimated Monthly Benefit $2,566.51 $2,961.70 $2,840.59 $2,701.70 $2,588.09 $2,483.66 Item # 3 Pension Trustees Agenda Council Chambers - City Hall Meeting Date:4/16/2012 SUBJECT / RECOMMENDATION: Approve the request of employee Dennis Allen, Solid Waste/General Services Department, to vest his pension as provided by Section 2397 of the Employees' Pension Plan. SUMMARY: Dennis Allen, Licensed Electrician, Solid Waste/General Services Department, was employed by the City on March 14, 1988, and began participating in the Pension Plan on that date. Mr. Allen terminated from City employment on October 4, 2011. The Employees' Pension Plan provides that should an employee cease to be an employee of the City of Clearwater or change status from full-time to part-time after completing ten ar more years of creditable service (pension participation), such employee shall acquire a vested interest in the retirement bene�ts. Vested pension payments commence on the first of the month following the month in which the employee normally would have been eligible for retirement. Section 2397) provides for narmal retirement eligibility when a participant has reached age 55 and completed twenty years of credited service, has completed 30 years of credited service, or has reached age 65 and completed ten years of credited service. Mr. Allen would have completed at least 20 years of service and reached age 55 on October 21, 2012. His pension will be effective November 1, 2012. Review Approval: Cover Memo ��11�:�� City of Clearwater, Florida, and having compieted ten (10} or more years of credited service, �h_�_ r_v�e_havin�occurred__duri� the __period from _�ate__.of_ent 'nto Pen ion Plan) i - - ------- ---- a' J`{� !`�a'8'to (date of resignation or change of status) �� o� p/I hereby makes application to receive the vested rights pension provided for by the City Code of Ordinances. As such former employee, I understand the pension requested will be computed pursuant to the provisions of the City Code of Ordinance in effect on the date of resignation. I hereby further certify that my date of birth is QC� b e`- o� 1 /�j �� At achment number 1\nPage 1 The date I will begin to receive my pension will be /`-^� ��� �� y" /', � 4/oZ. Further, I additionally certify that I have made no application seeking to obtain a return of the contributions that I paid into the Pension Fund during the period of my employment set forth above, I have not been convicted of a felony during my period of employment, and I have not received any ther type of pension from the City. X' , GG%'G%C �----� S' atu re �O �� � Gl t.C/QS � (�3-� vl � � J ��cJ� i,G�' Departmen ivision �. i � e h S� d� � l e�-�r1' c�`c. h Job Classification Social Security Number o2c�a� � �c��e � Street ddress �l �a �����v� /�� " �ss' City, State, ip Code STATE OF FLORIDA The foregoing instrument was acknowledged before COUNTY OF PINELLAS me this day of � �'�/� �` , 20 l02 by �1 �V�v� �S �-� Iet�. who is personally know to me or who has provided as identification and who did/did not take an oath. - Notary Public �f�0 /'�� �, ���%Name of Notary Printed My commission expires Rev. 4/09 NOTAAY PUALiC-STATE OF FLORIDA �`"'°`'.. Deborah L. rord .: . 26 '�.,,,,,,,.••' Expires: 11�t�1' � 5, 2012 BONDID.THRDATLANTIC BOA'D1Nu CO., INC. Vested Pension Form Pension Trustees Agenda Council Chambers - City Hall Meeting Date:4/16/2012 SUBJECT / RECOMMENDATION: Annual review of the Employees' Pension Plan investment perfarmance for the year ending December 31, 2011. SUMMARY: This is the annual presentation on the investment performance of the Employees' Pension Plan for calendar and plan year ending December 31, 2011. For the last calendar year, the plan had a return of -0.36% versus a custom benchmark of 1.81 %. This is a deficit return of -2.17% under the benchmark and a deficit return of -1.40% under the median public pension plan, placing the plan in the 79th percentile of public pension plans per the Wilshire Public Plan Sponsor Universe. For the last three calendar years, the plan has a return of 15.20% versus a benchmark of 13.49%. This is an excess return of 1.71 % over the benchmark and placed the plan in the top 3rd percentile of pension plan performance for public plans for this three-year period. The only change in money managers was the recent termination of Wellington Management, an international equity manager. All of the current managers in the plan are performing as expected given their stated investment strategies and investment styles, despite recent performance below benchmarks. The current asset allocation study implementation is almost completed. The plan sent some funding to one of the two new timber managers in the last year and will continue to fund them over the next couple of years, as is typical for long term investments with this type of manager. The Pension Investment Committee was considering the addition of a hedge fund manager for the purpose of protecting the plan in down markets. However, hedge funds have not performed as expected during recent down markets, causing the committee to instead search for a large cap value manager that will add downside protection to the plan. That search is currently underway. Review Approval: 1) Off'ice of Management and Budget 2) Lega13) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Cover Memo ��11�:�� Attachment number 1 \nPage 1 Attachment number 1 \nPage 2 Attachment number 1 \nPage 3 Attachment number 1 \nPage 4 Attachment number 1 \nPage 5 Attachment number 1 \nPage 6 Attachment number 1 \nPage 7 Attachment number 1 \nPage 8 Attachment number 1 \nPage 9 Attachment number 1 \nPage 1i Attachment number 1 \nPage 1 Attachment number 1 \nPage 1; Attachment number 1 \nPage 1; Attachment number 1 \nPage 1� Attachment number 1 \nPage 1; Attachment number 1 \nPage 1i Attachment number 1 \nPage 1 Attachment number 1 \nPage 1� Attachment number 1 \nPage 1! Attachment number 2 \nPage 1 :; , � � ;� ,+ � ,_ � m I`lf 1� Se i�r ves� e� C� s 1�� � � �� �� � : : ��� Attachment number 2 \nPage 2 ��11�:�� Attachment number 2 \nPage 3 * � . �,. �.: -, �. �,;'�. .. .,z ���:� �1, ,��, 1,; � ; � ` � R ' � :: . / :� . • � y �� 4 " � ■� ' 1 .' �1�� ' 1:�: � "4::�: . �; : J£ � •,; ,, � 0 0 0 .l �. �; � :,:, :,:, :,:, :,: .,:,: :,:, :,:, :,:, :,: .,:,: it�� # Attachment number 2 \nPage 4 ��11�:�� Attachment number 2 \nPage 5 City of Clearwater Employees Pension Fund Important Disclaimer Information This report has been created as a courtesy for the clients of CapTrust Advisors. The information contained herein was taken from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Performance Comparison Page Information: Shaded areas represent where the investment objective was achieved either by: 1) The investment return versus the index; 2) The investment return universe ranking (The lower the number the better the ranking) Due to methodologies utilized by our systems, the performance results presented are calculated and presented beginning on the last day of an account's inception month. Results do not include the interim period from an account's inception date to an account's first month-end. For example, for an account that has an inception date of March 15, this report begins measuring performance as of March 31. Omission of performance during this interim period is likely to result in different performance figures than if the interim period's performance was included in this report. When applicable, investment results depicted represent historical net of fees performance. Past performance is no guarantee of future performance. This report is not the official record of your account. However, it has been prepared to assist you with your investment planning and is for information purposes only. Your Custodial Client Statement is the official record of your account. Therefore, if there are any discrepancies between this report and your Client Statement, you should rely on the Client Statement and call your Financial Advisors if you have any questions. Transactions requiring tax consideration should be reviewed carefully with your accountant or tax tax advisor. This is not a substitute for your own records and the year-end 1099 form. Cost data and acquisition dates provided by you are not verified by CapTrust Advisors. Indices are unmanaged and you cannot invest directly in an index. For index definitions, please see the Capital Markets Review. I[�'ii�:�7 Attachment number 2 \nPage 6 ��11�:�� Domestic Fixed Income 3 Month T-Bill Barclays Capital 1-3 year Gov't Barclays Capital Interm Gov't Barclays Capital Interm Credit Barclays Capital Interm Govt/Cred Barclays Capital Aggregate Bond Domestic Equity Standard & Poor s 500 Dow Jones Industrial Average Dow Jones US Total Full Cap Dow Jones US Select REIT Russell 1000 Growth - Large Cap Russell 1000 Value - Large Cap Russell Midcap Growth Russell Midcap Value Russell 2000 Growth - Small Cap Russell 2000 Value - Small Cap International Equity MSCI EAFE MSCI World MSCI EM Blended Benchmarks 30% S&P 500 / 70% Barclays Agg 40% S&P 500 / 60% Barclays Agg 50% S&P 500 / 50% Barclays Agg 60% S&P 500 / 40% Barclays Agg 70% S&P 500 / 30% Barclays Agg 0.00% 0.06% 0.06% 0.21% 1.56% 1.56% 0.69% 6.08% 6.08% 1.13% 5.37% 5.37% 0.84% 5.80% 5.80% 1.12% 7.84% 7.84% 11.82% 2.11% 12.78% 8.38% 11.97% 0.52% 15.36% 9.37% �,,, � �������� f'1,��i��I'' ��+� �'�'�' !��� �' { � li � P� ��' I,° I i�;I �� I�� �'� i, �+It t 10.61% 2.64% 13.11% 0.39% 0.12% 1.31% 1.91% 1.79% 3.80% 3.39% 3.54% 5.86% 4.89% 9.59% 6.21% 5.79% 5.65% 5.88% 5.20% 6.77% 6.50% 5.78% 2.11% 14.11% -0.25% 8.38% 14.89% 2.37% 0.52% 15.24% 0.28% 9.37% 21.63% -2.04% � � i� ��' �' ji�f i� � ��l� � i ait)w� ���'e'�� i�({iir,���l °n� li � m� � � �i f � �I �r� ��5��`i �I�� ,+� ��`''� e Iii�l�l �I uiN,i' I' �;,�� y 2.64% 18.02% 2.50% 0.39% 11.55% -2.64% 11.24% -1.65% -1.65% 13.37% -1.38% -1.38% Y�.� �C� � It f i o r�' �1i' n� io iI'�� r� �m r �' � m IB ��y�� �g���� ���'Ir���) j J��i1 ��� �J"�� �(���,��Ild��,��� � 1 i, , � 4 CV �Y 1 id h I I {I I I 1 i �, i 14.99% -2.91% -2.91% 15.97% -5.50% -5.50% 3.33% -12.14% -12.14% 7.59% -5.54% -5.54% 4.08% -20.41 % -20.41 % 4.33% 5.40% 6.47% 7.54% 8.61 % 6.12% 5.55% 4.98% 4.40% 3.83% 6.12% 5.55% 4.98% 4.40% 3.83% 22.06% 2.44% 18.19% 0.04% IY���i{�',!, i � i� � n � 1� �!I ,�,14' �II' ���, v6�� el� � ����`� �i��f �' � � '�r� a 19.00% 2.09% 12.36% -1.87% 7.65% 11.13% 17.35% 8.97% 9.71 % 10.44% 11.17% 11.91% -4.72% -2.37% 0.08% 4.48% 3.80% 3.13% 2.45% 1.78% 2.92% 4.57% 3.90% 10.12% 2.60% 3.89% 5.29% 7.67% 4.48% 6.40% 4.67% 3.62% 11.19% 4.92% 4.64% 4.35% 4.06% 3.78% This and/or the accompanying informafron was prepared by or obtained from sozrrces which Wells Fargo Advisors believes to be reliable bzrt does not,gtrarantee its acczrracy. Please see important discloszrre and reference informafron at the conclzrsion of this report Past performance is not indicafrve of fzrtzsre reszrlts. �te�'j'� #'rj Data Sozrrces: Zephyr StyleAdvisor, Barclay's Capital, MSCI Barra & Standard & Poor's Data provided by sozrrces believed to be reliable bzrt no ,gtrarantee is made as to its acczrracy. Past performance is no ,gtrarantee of fzrtzrre performance. � Capital Markets Overview The U.S. markets shrugged off persistent concerns over the European debt crisis to end the quarter better than it began. The latest economic data indicates that the U.S. economy is not in a recession, and that economic activity probably expanded at its fastest pace of the year during the fourth quarter. Overseas markets remain mixed. In Europe, the debt crisis and austerity measures are the source of much consternation. European leaders must deal with the debt, but austerity demands may be forcing some countries into a recession. China is working through a government controlled economic slowdown. After a volatile third quarter the fixed income markets took a breather. However, most sectors of the fixed income market did see gains for the quarter. The exceptions were long dated Treasuries and international developed fixed income. Yields remain at historically low levels. Commodities declined during the quarter, led by metals. Gold ended below its August high, but finished the quarter and year with its 11 th straight annual gain. Iranian military exercises and threats to close or restrict shipping lanes caused a late-in-the-quarter spike in crude oil. The U.S. Dollar Index is up 13% from its March 2008 low as investor's perceived the dollar as a safe haven alternative to the Euro. Fourth quarter ends much better than it started > U.S. economy more resilient than expected �o.o��o > Economic activity expands at faster pace of the year (4th quarter) s. o�ia a. o�ia 4. o�ia > Recessionary fears subside z����� o.o�ia -z.o�ia -4.o�ia -a.o�ia -s.o�ia io.o�ia 2000 2002 2004 Percentage estimates for 4rh quarte Real GDP Bars = CAGR Line = Yr/Yr Percent Change 2006 2008 2010 io.o�ia s.o�ia a.o�ia 4.o�ia z.o�ia o.o�ia -z.o�ia -4.o�ia -a.o�ia -s.o�ia -io.o�ia This and/or the accompanying informafron was prepared by or obtained from sozrrces which Wells Fargo Advisors believes to be reliable bzrt does not,gtrarantee its acczrracy. Please see important discloszrre and reference informafron at the conclzrsion of this report Past performance is not indicafrve of fzrtzsre reszrlts. ��Q�'j'� #'rj Data Sozrrces: Zephyr StyleAdvisor, Barclay's Capital, MSCI Barra & Standard & Poor's Data provided by sozrrces believed to be reliable bzrt no ,gtrarantee is made as to its acczrracy. Past performance is no ,gtrarantee of fzrtzrre performance. 4 > Consumer confidence jumps to eight month high Consumer Confidence Index Conference Board 160 160 > Investor sentiment improves 140 140 > Jobs and employment numbers improve izo izo k , 1�� 1�� � = i 80 i 80 s � 60 ` 60 � I 40 ConfidenceYr/Yr% Chg: Dec @ 1.8%� r� �� 40 ,> -Confidence: Dec @ 64.5 °�12-Month Moving Average: Dec @ 58.1 a 20 20 87 89 91 93 95 97 99 O1 03 OS 07 09 11 October rally sparks U.S. equities in fourth quarter > October marks best month for S&P 500 since 1991 > Energy and Industrials lead S&P 500 to 11.82% return in quarter > Dow Jones Industrial Average rallies more than 1000 points in October > Major market caps post gains better than 10% for the quarter, led by small caps (Russell 2000) up 15.47% This and/or the accompanying informafron was prepared by or obtained from sozrrces which Wells Fargo Advisors believes to be reliable bzrt does not,gtrarantee its acczrracy. Please see important discloszrre and reference informafron at the conclzrsion of this report Past performance is not indicafrve of fzrtzsre reszrlts. �te�'j'� #'rj Data Sozrrces: Zephyr StyleAdvisor, Barclay's Capital, MSCI Barra & Standard & Poor's Data provided by sozrrces believed to be reliable bzrt no ,gtrarantee is made as to its acczrracy. Past performance is no ,gtrarantee of fzrtzrre performance. 5 Most sectors of the fixed income markets see gains during the quarter > Corporate, High Yield and Preferred sectors all rise > Yields remain at near historically low levels a� v c � � L 0 w L � a � �o a� L U 25.00% 20.00 % 15.00 % 10.00 % 5.00 % 0.00 % 4Q11 YTD 1 YR 3 YR 5 YR Long Treasuries see moderate declines > Benchmark 30-year Treasury yield drops to 2.89% from 2.91% > International developed fixed income markets trended lower 6 5 4 3 2 1 0 04' 1��\�O 3 Year Trailing Treasury yields O�� O�� O�'� O,'� O�'� O,'� ti��\� ����� ti���� ���\� ti���� ����� 1 yr 5 yr 10yr 30yr AAA � AA A BBB BB This and/or the accompanying informafron was prepared by or obtained from sozrrces which Wells Fargo Advisors believes to be reliable bzrt does not,gtrarantee its acczrracy. Please see important discloszrre and reference informafron at the conclzrsion of this report Past performance is not indicafrve of fzrtzsre reszrlts. �te�'j'� #'rj Data Sozrrces: Zephyr StyleAdvisor, Barclay's Capital, MSCI Barra & Standard & Poor's Data provided by sozrrces believed to be reliable bzrt no ,gtrarantee is made as to its acczrracy. Past performance is no ,gtrarantee of fzrtzrre performance. 6 Global economy still threatened by debt and engineered slowdown > China in the midst of engineered economic slowdown to slow inflation > Emerging markets improved, but still pressured by slow growth > Europe struggling to contain debt crisis and calm fears Eurozone Real GDP Bars = Compound Annual Rate Line = Yr/Yr % Change 8% 4% 0% -4% -8% 8% 4% 0% -4% -8% -12% ' I I I I I F-12% 2002 2004 2006 2008 2010 Percentageestimatesfor4rhquarter Rea� G�Oba� G�P GI'OWtil Source: HIS Global Insight Year-over-YearPercent Change, PPP Weights 7.5% 7.5% 6.0% 6.0% Period Average 4.5% 4.5% 3.0% 3.0% 1.5% 1.5% 0.0% 0.0% -1.5% -1.5% 1970 1975 1980 1985 1990 1995 2000 2005 2010 Percentage estimates for 4rh quarter Source: International Monetary Fund This and/or the accompanying informafron was prepared by or obtained from sozrrces which Wells Fargo Advisors believes to be reliable bzrt does not,gtrarantee its acczrracy. Please see important discloszrre and reference informafron at the conclzrsion of this report Past performance is not indicafrve of fzrtzsre reszrlts. �te�'j'� #'rj Data Sozrrces: Zephyr StyleAdvisor, Barclay's Capital, MSCI Barra & Standard & Poor's Data provided by sozrrces believed to be reliable bzrt no ,gtrarantee is made as to its acczrracy. Past performance is no ,gtrarantee of fzrtzrre performance. 7 B ES T R'ORS T 1992 1993 1994 1995 1996 1997 1995 1999 2000 2001 2002 2003 2004 2005 2006 2007 2005 2009 2010 2011 � Russell 1000 Value contains those Russell 1000 (larger capitalization) securities with a less-than-average growth orientation. Securities in this index generally have lower price-to-book and price-to-eamings ratios, higher dividend yields, and lower forecasted growth rates. Russell 1000 Growth contains those Russell 1000 (larger capitalization) securities with a greater-than-average growth orientation. Securities in this index generally have higher price-to-book and price-to-eamings ratios, lower dividend yields, and higher forecasted growth rates. Russell 2000 Value contains those Russell 2000 (smaller capitalization) securities with a less-than-average growth orientation. Securities in this index generally have lower price-to-book and price-to-eamings ratios than those in the Russell 2000 Growth Index. Russell 2000 Growth contains those Russell 2000 (smaller capitalization) securities with a greater-than-average growth orientation. Securities in this index generally have higher price-to-book and price-to-eamings ratios than those in the Russell 2000 Value Index. MSCI EAFE is the Margan Stanley Capital Intemational Europe, Australia, Far East Index designed to measure the performance of developed stock markets in these areas. _ Barclays Agg Bond is the Lehman Brothers Aggregate Bond Index. This index includes U.S. govemment, corporate and mortgage-backed securities rated investment grade or higher with maturities up to 30 years. ��" %��r.;;, S&P 500 is a representative sample of SOO leading companies in leading industries of the U.S. economy. DJ Wilshire REIT is intended as a broad measure of the performance of publicly traded real estate equity. The index is comprised of companies whose charter is the equity ownership and operation of commercial real estate. This and/or the accompanying informafron was prepared by or obtained from sozrrces which Wells Fargo Advisors believes to be reliable bzrt does not,gtrarantee its acczrracy. Please see important discloszrre and reference informafron at the conclzrsion of this report Past performance is not indicafrve of fzrtzsre reszrlts. �te�'j'� #'rj DataSozrrces: Morningstar Data provided by sozrrces believed to be reliable bzrt no ,gtrarantee is made as to its acczrracy. Past performance is no ,gtrarantee of fzrtzrre performance. 8 �a �a �a a -�a -�a -sa bCJ �C� r� a _yp -�a -6{7 E�uitc ��. F�a� lle� ° 1 5tandarr� ➢s�iatiar! ����?� Starida:d L3e �iaae�n� ��7ome=nc ��, FcFagn _l�a� 1 c[andasclDecianon �� � 2 Statacl�sal LSesiatidns This and/or the accompanying informafron was prepared by or obtained from sozrrces which Wells Fargo Advisors believes to be reliable bzrt does not,gtrarantee its acczrracy. Please see important discloszrre and reference informafron at the conclzrsion of this report Past performance is not indicafrve of fzrtzsre reszrlts. �te�'j'� #'rj DataSozrrces: Morningstar Data provided by sozrrces believed to be reliable bzrt no ,gtrarantee is made as to its acczrracy. Past performance is no ,gtrarantee of fzrtzrre performance. �Q �a :a la a -la -�a -�a -�a �3(� �fi �c� a -ra -�a -sa � La�e •� s. Small _i5e�a 1�tanda�3 I3eciatian � �� Standasd De �izti�n= I.az�e i'alue cR. La€re Gzo�th 'kFe� 1 Std De°.iaridti �'� Std I]e•�ianan= This and/or the accompanying informafron was prepared by or obtained from sozrrces which Wells Fargo Advisors believes to be reliable bzrt does not,gtrarantee its acczrracy. Please see important discloszrre and reference informafron at the conclzrsion of this report Past performance is not indicafrve of fzrtzsre reszrlts. �te�'j'� #'rj DataSozrrces: Morningstar Data provided by sozrrces believed to be reliable bzrt no ,gtrarantee is made as to its acczrracy. Past performance is no ,gtrarantee of fzrtzrre performance. � �� �a �� � -�t� -�� -sc� �a 6[7 �� ;a r� -�� -�� -�r� -�c� Small C'alue ,'?. Snta]1 �a�; th _l.Tean 1 Szzs:d� �s�3a¢Qn �� � Stsr!�laa�3 DEi3aIlOn. Equitc* ^��. REIT ltean , 1 Standazai I7e�i�ncn ����� Stan�iefd De•.iaflons This and/or the accompanying informafron was prepared by or obtained from sozrrces which Wells Fargo Advisors believes to be reliable bzrt does not,gtrarantee its acczrracy. Please see important discloszrre and reference informafron at the conclzrsion of this report Past performance is not indicafrve of fzrtzsre reszrlts. �te�'j'� #'rj DataSozrrces: Morningstar Data provided by sozrrces believed to be reliable bzrt no ,gtrarantee is made as to its acczrracy. Past performance is no ,gtrarantee of fzrtzrre performance. ��� ��� ��� �� -��� _g,� -��+a Fised I�icame �_, RETT l�e�x ° 1 5¢�r!dazd De,ciana�i � �'� St�nda.�l i�eci�¢on� This and/or the accompanying informafron was prepared by or obtained from sozrrces which Wells Fargo Advisors believes to be reliable bzrt does not,gtrarantee its acczrracy. Please see important discloszrre and reference informafron at the conclzrsion of this report Past performance is not indicafrve of fzrtzsre reszrlts. �te�'j'� #'rj DataSozrrces: Morningstar Data provided by sozrrces believed to be reliable bzrt no ,gtrarantee is made as to its acczrracy. Past performance is no ,gtrarantee of fzrtzrre performance. 12 FIRM: Wells Fargo Advisors is the trade name used by two separate, registered broker/dealers and nonbank af�liates of 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 insurance products are: NOT FDIGINSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE. CONFLICTS OF INTEREST: To review important information about certain relationships and potential conflicts of interest that may exist between Wells Fargo Advisors , its affiliates, and the companies that are mentioned in this report, please visit the our research disclosure page at or call your Financial Advisor. STATEMENT OF OPINION: This and/or the accompanying information was prepared by or obtained from sources 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 of every 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. ASSET CLASS SUITABILITY: Stocks of small companies are typically more volatile than stocks of larger companies. 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 greater risks, which could result in loss of principal and interest payments. GlobaUInternational investing involves risks not typically associated with US investing, including currency fluctuations, political instability, uncertain economic conditions and different accounting standards. PAST PERFORMANCE: Past performance is not an indication of future results. ASSET CLASS PERFORMANCE REPRESENTATIONS: Long Term Treasuries = BC Treasury Long; Municipals = BC Municipal; Foreign Bonds = Salomon World BIG — IB; US Govt/Credit = BC Govt/Credit Mtge Backed 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 US Value = RU 2000 Value; MidCap US Stocks = RU Midcap; Large Cap US Value = RU 1000 Value; European Stocks = Salomon Europe BMI; Small Cap US Stocks = RU 2000; Lg Cap US Growth = RU 1000 Growth; Latin American Stocks = Salomon Latin America BMI; Sm Cap US Growth = RU 2000 Growth BROAD EQUITY MARKET & SECTOR PERFORMANCE REPRESENTATIONS: Large-Cap = S&P 500 or Russell 1000; Mid-Cap = RU Midcap; Small-Cap = RU 2000; International = MSCI EAFE DATA SOURCES: Information found in this document was derived from the following sources: Zephyr Associates StyleAdvisor, Informa M-Watch, Investor Force, Barclays Capital, MSCI Barra, and Standard & Poor's. Item # 5 This and/or the accompanying informafron was prepared by or obtained from sozrrces which Wells Fargo Advisors believes to be reliable bzrt does not,gtrarantee its acczrracy. Please see important discloszrre and reference informafron at the conclzrsion of this report Past performance is not indicafrve of fzrtzrre reszrlts. 13 Dow Jones Industriai Average - This index is comprised of 30 "blue-chip" US stocks selected for their history of 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 a price-weighted arithmetic average, with the divisor adjusted to reflect stock splits and the occasional stock switches in the index. NASDAQ Composite - A cap-weighted index comprised of all common stocks that are listed on the NASDAQ Stock Market (National Association of Securities Dealers Automated Quotation system). S&P 500 - A broad-based measurement of changes in stock market conditions based on the average performance of 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, this index 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. S&P 500/Citigroup Growth - The S&P/Citigroup Growth tracks the performance of those stocks in the S&P 500 with 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. S&P 500/Citigroup Vaiue - The S&P Citigroup/Value tracks the performance of those stocks in the S&P 500 with higher 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. Russeii 1000 - The 1000 largest companies in the Russell 3000 index, based on market capitalization. Russeli 1000 Growth - A segment of the Russell 1000 with a greater-than-average growth orientation. Companies in this index have higher price-to-book and price-earnings ratios, lower dividend yields and higher forecasted growth values than the Russell 1000 Value index. Russeii 1000 Vaiue - Represents a segment of the Russell 1000 with a less-than-average growth orientation. Companies 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. Russeli Mid Cap - The index consisting of the bottom 800 securities in the Russell 1000 as ranked by total market capitalization, and it represents over 35% of the Russell 1000 total market cap. Russeii 2000 - The 2000 smallest companies in the Russell 3000 index. Russeli 2000 Growth - A segment of the Russell 2000 with a greater-than-average growth orientation. Companies in this index have higher price-to-book and price-earnings ratios, lower dividend yields and higher forecasted growth values than the Russell 2000 Value index. Russeii 2000 Vaiue - A segment of the Russell 2000 with a less-than-average growth orientation. Companies in this index have low price-to-book and price-earnings ratios, higher dividend yields and lower forecasted growth values than the Russell 2000 Growth index. Russeli 2500 - The index consisting of the bottom 500 stocks in the Russell 1000(as ranked by market capitalization) and all of the stocks in the Russell 2000. This index is intended to be used as a measure of small to medium/small stock performance, and it represents over 22% of the Russell 3000 total market cap. I[�'ii�:�7 This and/or the accompanying informafron was prepared by or obtained from sozrrces which Wells Fargo Advisors believes to be reliable bzrt does not,gtrarantee its acczrracy. Please see important discloszrre and reference informafron at the conclzrsion of this report Past performance is not indicafrve of fzrtzrre reszrlts. 14 MSCI EAFE - A market capitalization-weighted index representing all of the MSCI developed markets outside North 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 Paci�c countries in the MSCI Paci�c. This index is created by aggregating the 20 different country indexes, all if which are created separately. MSCI World - This market capitalization-weighted index represents all 22 of the MSCI developed markets in the world. It is created by aggregating the 22 different country indexes, all if which are created separately. MSCI Emerging Markets Free (EMF) - A market capitalization-weighted index representing 26 of the emerging 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. Barciays Capitai Government/Credit - This index includes all bonds that are in the Barclays Capital Government Bond and the Barclays Capital Credit Bond indices. Barciays Capitai Government Intermediate - All bonds covered by the Barclays Capital Government Bond index with maturities of 1 and 10 years. Barciays Capitai Aggregate Bond - This index is made up of the Barclays Capital Government/Credit, the Mortgage- 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. Barciays Capitai Government Long Term - All bonds covered by the Barclays Capital Government Bond index with maturities of 10 years or greater. Barciays Capitai Municipai Bond - This market cap weighted index includes investment grade tax-exempt bonds and is 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. Merriii Lynch Convertibles - The convertible securities used in this index span all corporate sectors and must have a par 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. Excluded from this index are preferred equity redemption stocks. When the component bonds of this index convert into common stock, the converted securities are dropped from the index. Merriii Lynch High Yieid Master - Market-cap weighted index providing a broad-based measure of bonds in the US domestic bond market rated below investment grade but not in default. Includes only issues with a credit rating of BB 1 or below as rated by Moody's and/or S&P, at least $100 million in face value outstanding and a remaining term to final maturity equal to or greater than one year. Dow Jones Wiishire REIT Index - A measurement of equity REITs and Real Estate Operating Companies. No special- 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. Citigroup 3 Month Treasury Biii - Representing the monthly return equivalents of yield averages that are not marked to market, this index is an average of the last three three-month Treasury bill issues. 50/50 Biend (S&P 500/BCIGC) — A blended benchmark consisting of 50% S&P 500 and 50% Barclays Capital Government/Credit Intermediate indices. I[�'ii�:�7 This and/or the accompanying informafron was prepared by or obtained from sozrrces which Wells Fargo Advisors believes to be reliable bzrt does not,gtrarantee its acczrracy. Please see important discloszrre and reference informafron at the conclzrsion of this report Past performance is not indicafrve of fzrtzrre reszrlts. 15 Attachment number 2 \nPage 2i ��11�:�� � Attachment number 2 \nPage 2 City of Clearwater Asset Allocation vs Target & Policy Total Fund As of 12/31/11 Market Manager Value Actual % Policy % ING Investment Mgmt 92,197,899.91 14.22 Aletheia Research 26,335,621.20 4.06 NTGI-QM R1000V 53,021,835.24 8.18 Artisan Partners 35,728,704.38 5.51 Wedge Capital Mgmt 36,401,291.97 5.62 Atlanta Capital Mgmt 12,687,788.72 1.96 Systematic Financial Mgt 10,283,687.47 1.59 Riverbridge Partners 20,478,456.38 3.16 Total Domestic Equity 287,135,285.27 44.29 42.00 Earnest Partners 33,508,295.17 5.17 Wentworth & Violich 27,087,331.58 4.18 Eaton Vance Mgmt 25,011,469.43 3.86 Wellington Mgmt 6,942,220.92 1.07 Total International Equity 92,549,317.10 14.28 18.00 Dodge & Cox 111,072,566.03 17.13 Western Asset Management Co. 87,331,156.36 13.47 Security Lending Income Account 183,827.37 0.03 In House Account 1,499,923.22 0.23 Total Domestic Fixed Income 200,087,472.98 30.86 30.00 Multi Employer Property Trust 23,664,524.95 3.65 Security Capital 41,960,078.37 6.47 Molpus Woodlands Group 2,874,303.00 0.44 Total Real Estate 68,498,906.32 10.57 10.00 Total Fund 648,270,981.67 100.00 I[�'ii�:�7 17 Attachment number 2 \nPage 2; City of Clearwater Sources of Fund Growth Total Fund 9/30/11 - 12/31/11 Beginning Net Invest Invest Ending Manager Name Value Contrib Fees Gain/Loss Value ING Investment Mgmt 84,055,687 -941 0 8,143,154 92,197,900 Aletheia Research 24,192,988 -708 0 2,143,342 26,335,621 NTGI-QM R1000V 38,066,505 9,499,330 0 5,456,001 53,021,835 Artisan Partners 33,681,696 -1,326 0 2,048,335 35,728,704 Wedge Capital Mgmt 32,037,173 -677 0 4,364,796 36,401,292 Atlanta Capital Mgmt 10,898,733 -334 0 1,789,389 12,687,789 Systematic Financial Mgt 8,501,150 -259 0 1,782,796 10,283,687 RiverbridgePartners 18,102,181 -372 0 2,376,647 20,478,456 Managed Equity 249,536,112 9,494,713 0 28,104,460 287,135,285 Earnest Partners 25,710,686 5,493,087 0 2,304,523 33,508,295 Wentworth & Violich 24,580,309 -4,719 0 2,511,742 27,087,332 Eaton Vance Mgmt 24,473,262 0 0 538,208 25,011,469 Wellington Mgmt 21,764,693 -15,000,000 0 177,528 6,942,221 International EQ Comp 96,528,950 �9g511g633 0 5,532,000 92,549,317 Dodge & Cox 109,892,456 -1,842 0 1,181,953 111,072,566 Western Asset Management Co. 86,180,127 -13,802 0 1,164,832 87,331,156 Security Lending Income Account 39,931 143,792 0 105 183,827 In House Account 806,813 693,110 0 0 1,499,923 Fixed Income Comp 196,919,327 821,257 0 2,346,890 200,087,473 Multi Employer Property Trust 23,087,470 0 0 577,055 23,664,525 Security Capital 36,928,196 -456,637 0 5,488,520 41,960,078 Molpus Woodlands Group 2,455,219 456,000 0 -36,916 2,874,303 Real Estate Comp 62,470,885 �637 0 6,028,659 68,498,906 Total Fund 605,455,273 803,700 0 42,012,008 648,270,982 Item # 5 18 Attachment number 2 \nPage 2: City of Clearwater Executive Summary Table Periods Ending December 31, 2011 Net of Fee Return Value Periods Ending 12/31/11 Since Inception Name $(000) Cur Qtr 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Ret Date Total Fund 648,271 6.95 -0,36 1519 3.62 518 5.51 6.44 8.96 12/31/87 Policylndex 7.53 1.81 13.49 2.42 5.16 6.37 6.85 9.22 12/31/87 Domestic Equity Comp 287,135 10.89 -0,, � 17.34 1.51 4.01 4.61 6.24 10.34 12/31/87 S&P 500 11.82 212 14.10 -0.25 2.64 2.92 5.45 9.45 12/31/87 Large Cap Equity Comp 171,555 10.17 -0,40 13.00 014 2.88 3.35 5.22 9.44 3/31/SS RI000 11.85 1.51 14.81 -0.02 2.95 3.34 5.67 9.43 3/31/88 Aletheia Research 26,336 8.86 -13.I8 11.50 -4.58 6/30/07 RIOOOV 13.11 0.39 11.55 -4.22 6/30/07 ING Investment Mgmt 92,198 9.69 3.04 14.51 3.28 5.03 4.63 6.85 10.74 12/31/87 RIOOOG 10.60 2.63 18.02 2.50 3.81 2.60 4.45 8.86 12/31/87 NTGI-QM R1000V 53,022 11.68 -0.77 11.40 -4.29 6/30/07 RIOOOV 13.11 0.39 11.55 -4.22 6/30/07 Mid Cap Equity Comp 72,130 9.76 -0,10 22.95 3.59 5.43 6.32 7.76 11.75 3/31/SS RMid Cap 12.31 -L�6 20.17 1.41 4.85 6.99 8.44 10.98 3/31/88 Artisan Partners 35,729 6.08 0.07 26.35 710 8.08 7.45 7.44 7/31/Ol RMid Cap G 11.23 -L66 22.06 2.44 4.91 5.28 4.90 7/31/01 Wedge Capital Mgmt 36,401 13.62 -033 19.40 1.57 2/28/07 RMid Cap V 13.36 -L38 18.20 -0.71 2/28/07 Small Cap Equity Comp 43,450 15.86 2.07 20.77 2.23 4.98 712 S/31/03 R2000 15.48 -4.I7 15.63 0.15 3.20 6.26 8/31/03 Atlanta Capital Mgmt 12,688 16.42 10.20 20.76 8.66 936 10.98 8/31/03 R2000V 15.97 -�.�0 12.36 -1.87 2.34 6.22 8/31/03 Riverbridge Partners 20,478 1313 4.27 16.74 9/30/10 R2000G 14.99 -2.92 10.81 9/30/10 Systematic Financial Mgt 10,284 20.97 -9.9I 1833 -0.26 3.45 5.70 8/31/03 R2000V 15.97 -�.�0 12.36 -1.87 2.34 6.22 8/31/03 International EQ Comp 92,549 6.36 -I5,04 16.67 -I,70 411 5.92 4.58 5/31/Ol MSCI EAFE 3.38 -1 L 73 8.16 -4.26 2.18 5.12 3.61 5/31/01 EarnestPartners 33,508 7.59 -6.88 19.09 -L26 4/30/08 MSCI EAFE 3.38 -11.73 8.16 -7.59 4/30/OS Eaton Vance Mgmt 25,011 2.20 -I9.27 18.48 -4.02 4/30/08 MSCI Emg Mkts 4.45 -18.17 20.42 -4.37 4/30/OS Wellington Mgmt 6,942 1.87 -22.97 15.94 -3.27 3/31/08 MSCIEmgMkts 4.45 -18.17 20.42 -2.26 3/31/OS Wentworth & Violich 27,087 10.22 -13.64 16.56 -S.IS 4/30/08 MSCI EAFE 3.38 -1 L 73 8.16 -7.59 4/30/OS Fixed Income Comp 200,087 119 5.94 8.53 6.79 5.93 5.72 6.08 6.96 12/31/87 BC Agg 1.12 7.84 6.77 6.50 5.60 5.78 6.33 7.37 12/31/87 Item # 5 � Attachment number 2 \nPage 2� City of Clearwater Executive Summary Table Periods Ending December 31, 2011 Net of Fee Return Value Periods Ending 12/31/11 Since Inception Name $(000) Cur Qtr 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Ret Date Dodge & Cox 111,073 1.08 510 8.98 6.71 5.93 5.60 2/29/04 BC Agg 1.12 7.84 6.77 6.50 5.60 5.31 2/29/04 In House Account 1,500 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.76 12/31/87 3-month T-Bill 0.01 0.08 0.12 1.36 2.08 1.86 2.90 3.92 12/31/87 Securiry Lending Income Account 184 012 2.85 13.71 9.62 7.98 6.75 6/30/03 3-month T-Bill 0.01 0.08 0.12 1.36 2.08 1.91 6/30/03 Western Asset Management Co. 87,331 135 7.23 7.85 6.78 5.89 5.84 9/30/04 BC Agg 1.12 7.84 6.77 6.50 5.60 5.54 9/30/04 Real Estate Comp 68,499 9.65 S.SS 20.99 0.04 4/30/OS Policylndex 11.30 11.62 21.69 0.06 4/30/OS Molpus Woodlands Group 2,874 -L35 -2.03 6/30/11 NCREIF Timberland Index 0.51 0.16 6/30/11 Multi Employer Property Trust 23,665 2.50 12.99 14.41 9/30/10 NCREIF ODCE 2.97 15.99 17 07 9/30/10 Securiry Capital 41,960 14.90 6.86 20.59 -0.24 4/30/08 Wilshire RESI 15. 40 8.56 21. 89 0.15 4/30/OS Item # 5 20 Attachment number 2 \nPage 2: City of Clearwater Executive Summary Table December 31, 2011 Net of Fee Return Value Calendar Years Name $(000) 2011 2010 2009 2008 2007 2006 TotalFund 648,271 -0,36 17.73 30.28 -27,10 7.20 11.76 Policylndex 1.81 13.96 26.00 -2773 6.69 16.59 Domestic Equity Comp 287,135 -0,, � 22.53 3214 -3%,76 718 13.01 S&P 500 212 15.05 26.45 -36.99 5.52 15.81 Large Cap Equity Comp 171,555 -0,40 16.87 24.59 -35,23 7.76 11.52 RI000 1.51 16.10 28. 42 -37 60 5.77 15. 46 Aletheia Research 26,336 -I3.18 16.98 36.50 -37.97 RIOOOV 0.39 15.51 19.69 -36.85 ING Investment Mgmt 92,198 3.04 1710 24.43 -33.18 1710 714 RIOOOG 2.63 16.72 3721 -38.43 11.82 9.09 NTGI-QM R1000V 53,022 -0.77 15.75 20.35 -36.86 RIOOOV 0.39 15.51 19.69 -36.85 Mid Cap Equity Comp 72,130 -0,10 28.03 45.33 -4I,74 10.26 12.53 RMid Cap -I.56 25.49 40.47 -4I.46 5.59 15.27 Artisan Partners 35,729 0.07 3315 5138 -42.87 2231 10.94 RMid Cap G -L66 26.39 46.30 -44.32 11.41 10.64 Wedge Capital Mgmt 36,401 -033 2330 38.51 -34.89 RMid Cap V -L38 24.76 34.20 -38.4� Small Cap Equity Comp 43,450 2.07 29.27 33.51 -3R,63 3.27 17.40 R2000 -4.17 26.85 2719 -33.80 -L55 18.35 Atlanta Capital Mgmt 12,688 10.20 25.98 26.83 -19.52 6.91 16.22 R2000V -5.50 24.51 20.57 -28.92 -9.77 23.48 Riverbridge Partners 20,478 4.27 R2000G -2.92 Systematic Financial Mgt 10,284 -9.9I 35.50 35.72 -40.7I 0.49 18.61 R2000V -5.50 24.51 20.57 -28.92 -9.77 23.48 International EQ Comp 92,549 -I5,04 18.37 57.93 -47,44 11.02 27.62 MSCI EAFE -11.73 8.21 32.46 -43.06 11.63 26.85 EarnestPartners 33,508 -6.88 16.61 55.54 MSCI EAFE -11. 73 8.21 32.46 Eaton Vance Mgmt 25,011 -I9.27 2333 67.01 MSCI Emg Mkts -18.17 19.19 79. 02 Wellington Mgmt 6,942 -22.97 15.99 74.44 MSCI Emg Mkts -18.17 19.19 79. 02 Wentworth & Violich 27,087 -I3.64 17.58 55.98 MSCI EAFE -1 L 73 8.21 32. 46 Fixed Income Comp 200,087 5.94 7.37 12.37 2.54 5.94 5.05 BC Agg 7.84 6.54 5.93 5.24 6.96 4.33 Item # 5 21 Attachment number 2 \nPage 2i City of Clearwater Executive Summary Table December 31, 2011 Net of Fee Return Value Calendar Years Name �(000) 2011 2010 2009 2008 2007 2006 Dodge & Cox 111,073 510 7.53 14.53 137 5.47 5.62 BC Agg 7.84 6.54 5.93 5.24 6.96 4.33 In House Account 1,500 0.00 0.00 0.00 0.00 0.00 0.00 3-month T-Bill 0.08 0.13 0.16 1.80 4.74 4.76 Securiry Lending Income Account 184 2.85 21.70 17.48 2.43 510 4.87 3-month T-Bill 0.08 0.13 0.16 1.80 4.74 4.76 Western Asset Management Co. 87,331 7.23 7.09 9.24 3.92 6.51 4.66 BC Agg 7.84 6.54 5.93 5.24 6.96 4.33 Real Estate Comp 68,499 S.SS 30.51 24.68 Policylndex 11.62 24.96 29.20 Molpus Woodlands Group 2,874 NCREIF Timberland Index Multi Employer Property Trust 23,665 12.99 NCREIF ODCE 15. 99 Securiry Capital 41,960 6.86 31.62 24.68 Wilshire RESI 8.56 29.12 29.20 Item # 5 zz 16°�0 14��0 12��0 1 o°io s�io 6�io 4% 2% 0% -2% -4% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 2 City of Clearwater Cumulative Performance Comparison Total Returns of Total Fund Public Sponsors Periods Ending 12/11 Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years 8.00 4.54 9.56 14.56 3.63 4.50 5.61 5.83 6.69 8.52 6.65 6.70 1.86 7.59 11.98 2.41 3.51 4.71 5.02 5.73 7.21 5.78 5.79 1.04 6.77 10.70 1.18 2.47 4.06 4.41 5.04 6.53 5.16 4.96 0.02 5.82 9.38 0.20 1.70 3.51 3.91 4.57 6.02 4.67 3.53 -1.83 4.65 7.29 -1.25 0.62 2.69 3.19 3.79 5.12 3.89 T Total Fund Net Ret 6.95 -036 8.31 15.19 2.74 3.62 4.93 Rank 19 79 11 3 16 22 17 � Policy Index Net Ret 7.53 1.81 7.71 13.49 1.38 2.42 4.66 Rank 8 28 22 7 46 52 25 23 5.18 5.76 19 23 5.16 6.17 19 10 7.22 5.51 24 37 8.12 6.37 9 12 I[�'ii�:�7 35% 30% 25% 20% 15% 10% 5% �% -5% -1�% -15% -20% -25 % -30% -35% Attachment number 2 \nPage 2� City of Clearwater Calendar Year Performance Comparison Total Returns of Total Fund Public Sponsors Years Ending December 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 High 4.54 16.74 27.92 -10.14 11.17 16.43 10.75 14.38 27.27 1.46 1 st Qt 1.86 14.05 22.24 -20.65 8.95 14.33 8.46 12.07 23.21 -5.91 Median 1.04 12.67 19.53 -24.73 7.71 12.47 6.62 10.16 20.26 -8.13 3rd Qt 0.02 11.43 16.01 -2730 6.40 10.61 5.36 8.56 17.46 -9.63 Low -1.83 8.92 10.11 -3038 4.61 7.46 4.02 5.76 11.64 -12.74 T Total Fund Net Ret -036 Rank 79 � Policy Index Net Ret 1.81 Rank 28 17.73 3 13.96 27 30.28 -27.10 3 73 26.00 -27.73 8 79 7.20 11.76 60 58 6.69 16.59 69 4 24 6.71 9.90 49 55 8.25 13.48 27 8 19.63 -8.74 55 62 25.03 -8.11 12 49 I[�'ii�:�7 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Attachment number 2 \nPage 2! City of Clearwater Performance Summary Total Fund December 31, 2011 Qtr YTD 1 Year 3 Year 5 Year � Total Fund � Policy Index Total Fund Policy Index Rank ING Investment Mgmt R1000G Rank Aletheia Research R1000V Rank NTGI-QM R1000V R1000V Rank Artisan Partners R Mid Cap G Rank Wedge Capital Mgmt R Mid Cap V Rank Atlanta Capital Mgmt R2000V Rank Incept 12/31/87 Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets 6.95 �Oo36 �Oo36 i5:2U 3.62 8.96 12/31/87 $648,270,982 7.53 1.81 1.81 13.49 2.42 9.22 . � �:� l9� � '� 79 79 � � �� ,� ' 22 . 9.69 3:04 ;: 3x04 ,,; 14.51 , 3.2� "'. 10:74 10.60 2.63 2.63 18.02 2.50 8.86 � �� �� � - 17�' , � �'9,�, � 72 � �24�� � " 8.86 -13.18 -13.18 11.50 -4.58 13.11 0.39 0.39 11.55 -4.22 85 98 98 78 11.68 -0.77 -0.77 11.40 -4.29 13.11 0.39 0.39 11.55 -4.22 59 62 62 79 6.08 � � t?,C17 � �?:C17 � �b.3� � � � 7:1� � � 7.44 11.23 -1.66 -1.66 22.06 2.44 4.90 98 � ,�3�T � � 3�T � � �. � � � 5 13.36 -1.38 -1.38 18.20 -0.71 84 � 4��° ���4��° � 26 15.97 -5.50 -5.50 12.36 -1.87 6.22 25 12/31/87 $92,197,900 6/30/07 $26,335,621 6/30/07 $53,021,835 7/31/Ol $35,728,704 2/28/07 $36,401,292 8/31/03 $12,687,789 �Ei�'ii�:�•7 Systematic Financial Mgt R2000V Rank Riverbridge Partners R2000G Rank Earnest Partners MSCI EAFE Rank Wentworth & Violich MSCI EAFE Rank Eaton Vance Mgmt MSCI Emg Mkts Rank Wellington Mgmt MSCI Emg Mkts Rank Dodge & Cox BC Agg Rank Western Asset Management Co. BC Agg Rank Security Lending Income Account 3-month T-Bill In House Account 3-month T-Bill Attachment number 2 \nPage 3i City of Clearwater Performance Summary Total Fund December 31, 2011 Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets � 2�.9'�� -9.91 -9.91 � 1�.�3 , �Q.26� 5.70 8/31/03 $10,283,687 15.97 -5.50 -5.50 12.36 -1.87 6.22 ° �l� '��� 96 96 � ` 30� � 78 13.13 � � �;27� 4:27� �. �;16r74"�'� 9/30/10 $20,478,456 14.99 -2.92 -2.92 10.81 65 `l� �� 3.38 -11.73 -11.73 8.16 -7.59 � 14��22� ; -13.64 -13.64 �; ��,56 `` -5:1� 3.38 -11.73 -11.73 8.16 -7.59 �, �3 � ����� 56 56 ; < �;5� ,. 2.20 -19.27 -19.27 18.72 `;���,�6 4.45 -18.17 -18.17 20.42 -4.37 85 76 76 75 1.87 -22.97 -22.97 15.94 -3.27 4.45 -18.17 -18.17 20.42 -2.26 87 83 83 78 1.08 5.10 5.10 :: :;; 8:�$ � � 6�'�� � � �� ; ':�:C� 1.12 7.84 7.84 6.77 6.50 5.31 63 62 62 : : �7,�; , � , � !�� �, ,� ��:1:35� � ` 7.23 7.23 � ` �;7.85 � 6.7��� �.�� 1.12 7.84 7.84 6.77 6.50 5.54 4/30/08 $33,508,295 4/30/08 $27,087,332 4/30/08 $25,011,469 3/31/08 $6,942,221 2/29/04 $111,072,566 9/30/04 $87,331,156 6/30/03 $183,827 0.01 0.08 0.08 0.12 1.36 1.91 0.00 0.00 0.00 0.00 0.00 0.76 12/31/87 $1,499,923 0.01 0.08 0.08 0.12 1.36 3.92 26 �[i�'ii�:�•7 Multi Employer Property Trust NCREIF ODCE Rank Security Capital Wilshire RESI Rank Molpus Woodlands Group NCREIF Timberland Index City of Clearwater Performance Summary Total Fund December 31, 2011 Cur Qtr YTD 1 Year 3 Yrs 5 Yrs 2.50 12.99 12.99 2.97 15.99 15.99 62 �;� �6 ��`� � 4b' ��. 14.90 6.86 6.86 20.59 15.40 8.56 8.56 21.89 12 , 70 70 9 -1.35 0.51 27 14.41 17.07 -0.24 0.15 -2.03 0.16 Attachment number 2 \nPage 3 Incept Date Cur Assets 9/30/10 $23,664,525 4/30/08 $41,960,078 6/30/11 $2,874,303 �[i�'ii�:�•7 Attachment number 2 \nPage 3; ��11�:�� 28 Attachment number 2 \nPage 3; City of Clearwater Domestic Equity Comp as of 12/31/11 Portfolio Performance ("/o) 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 � Domestic Equiry Comp � S&P 500 Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 12/31/87 Domestic Equiry Comp 10.89 -0.21 -0.21 1734 1.51 4.61 10.34 S&P 500 11.81 212 212 1410 -0.25 2.92 9.45 Asset Growth ($000) Beginning Market Value 249,536 287,057 287,057 165,993 308,565 225,747 32,236 Net Contributions & Withdrawals 9,495 489 489 -4,644 -4,644 -4,644 -4,644 Gain/Loss + Income 28,104 -411 -411 125,786 -16,786 66,032 259,543 Ending Market Value 287,135 287,135 287,135 287,135 287,135 287,135 287,135 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Apple Inc Information Technology 2.82 Energy 1030 Exxon Mobil Corp Energy 2.77 Materials 5.99 Microsoft Corp Information Technology 1.61 Industrials 14.76 Google Inc Information Technology 1.58 Consumer Discretionary 15.40 Philip Morris Intl I Consumer Staples 1.45 Consumer Staples 7.94 Wyndham Worldwide Co Consumer Discretionary 1.05 Health Care 10.96 Monsanto Co New Materials 1.05 Financials 10.28 Qualcomm Inc Information Technology 1.04 Information Technology 22.55 Wal Mart Stores Inc Consumer Staples 0.99 Telecom Services 0.00 Johnson & Johnson Health Care 0.98 Utilities 1.83 ��11�:�� Holdings and allocations only include SMA accounts. 29 City of Clearwater Domestic Equity Comp as of 12/31/11 � � � � N � � � 11.0 10.5 10.0 9.5 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 0.0 Risk/Return Analysis Periods from 12/87 to 12/11 Alpha Beta R-Squared 0.15 1.09 0.94 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Annualized Standard Deviation% E Domestic Equity Comp ;. S&P 500 T 91-Day Treasury Bill Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio 1034 18.13 9.45 16.13 4.06 1.19 Holdings and allocations only include SMA accounts. 30 035 0.22 033 0.00 Attachment number 2 \nPage 3� ��11�:�� 25% 20% 15% 10% 5% �% -5% -1�% -15% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 3; City of Clearwater Cumulative Performance Comparison Total Returns of Equity Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years 17.28 7.93 15.71 24.09 5.92 6.93 8.03 8.29 9.57 12.30 10.02 13.51 2.21 11.01 18.85 2.08 3.18 5.05 5.70 6.97 10.18 7.17 11.81 -0.02 8.57 15.31 -0.41 1.10 3.11 3.89 5.09 8.00 4.85 9.39 -4.07 6.67 13.54 -1.87 -031 2.14 2.72 3.77 6.31 3.16 1.57 -10.98 0.20 8.47 -4.72 -3.03 -0.03 1.21 2.61 4.87 2.00 E Domestic Equity Comp Net Ret 10.89 -0.21 10.57 17.34 0.14 1.51 Rank 63 51 28 34 45 45 � S&P 500 Net Ret 11.81 2.12 8.39 14.10 -1.64 -0.25 Rank 51 27 55 69 71 73 31 3.34 4.01 5.11 46 48 49 2.27 2.64 3.63 72 80 83 7.97 4.61 50 53 6.16 2.92 82 83 I[�'ii�:�7 �o°io 6o�io so�io 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% Attachment number 2 \nPage 3i City of Clearwater Calendar Year Performance Comparison Total Returns of Equity Portfolios Years Ending December 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 High 7.93 32.53 54.34 -16.26 22.30 23.16 15.83 25.39 58.56 -334 lst Qt 2.21 25.05 36.66 -33.45 10.23 17.55 10.49 18.13 39.20 -14.43 Median -0.02 16.92 28.73 -37.01 5.43 14.63 6.95 13.04 31.40 -20.82 3rd Qt -4.07 13.55 24.10 -41.04 0.41 10.14 4.57 9.97 27.48 -24.65 Low -10.98 4.09 8.68 -49.21 -7.24 1.75 -0.10 3.32 17.66 -35.37 E Domestic Equity Comp Net Ret -0.21 22.53 Rank 51 31 � S&P 500 Net Ret 2.12 15.05 Rank 27 65 32.14 -37.76 38 57 26.45 -36.99 64 49 7.18 13.01 36 61 5.52 15.81 47 38 32 8.12 13.18 41 49 4.89 10.87 70 68 33.74 -2130 41 53 28.69 -22.12 66 63 I[�'ii�:�7 Attachment number 2 \nPage 3 City of Clearwater Risk Measure Summary Domestic Equity Comp Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 1 3 3 7 8 31 27 Positive Periods 3 3 9 9 13 12 65 69 Up Market Capture 1.03 l.l 1 1.11 1.09 Down Market Capture 1.17 0.98 1.00 1.05 Batting Average 0.50 0.75 0.65 0.54 Worst Quarter � 16.27 � 13.86 � 16.27 � 13.86 �23.59 �21.93 �23.59 �21.93 Best Quarter 10.89 11.81 18.14 15.93 18.14 15.93 22.08 21.32 Worst 4 Quarters �0.21 2.12 �0.21 1.15 �37.76 �3�.07 �37.76 m3�.07 Best 4 Quarters �0.21 2.12 55.86 49.75 55.86 49.75 55.86 49.75 Standard Deviation 22.23 21.27 22.52 21.14 18.13 16.13 Beta 1.04 1.06 1.09 Alpha 0.62 0.51 0.15 R-Squared 0.99 0.99 0.94 Sharpe Ratio 0.77 0.66 0.00 �0.08 0.35 0.33 Treynor Ratio 16.55 0.02 5.77 Tracking Error 2.75 2.78 4.82 Information Ratio 1.12 0.73 0.22 I[�'ii�:�7 33 28.0 25.4 22.8 � 20.2 � a� 0 17.6 � � 15.0 � N 12.4 � � 9.7 7.2 4.6 2.0 14.0 Attachment number 2 \nPage 3� City of Clearwater Return vs Risk Total Returns of Equity Portfolios 3 Years Ending 12/31/11 10.0 8.0 � 6.0 � � 4.0 w 0 � � 2.0 � � N 0.0 � �-2.0 -4.0 -6.0 12.0 15.8 17.6 E Domestic Equity Comp �y Standard & Poors 500 Median 19.4 21.2 23.0 24.8 26.6 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 17.34 34 14.10 69 15.31 5 Years Ending 12/31/11 28.4 30.2 32.0 Standard Deviation Value Rank 22.23 46 21.27 32 22.98 14.0 16.0 E Domestic Equity Comp 5 Standard & Poors 500 Median 18.0 20.0 22.0 24.0 26.0 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 1.51 45 -0.25 73 1.10 34 28.0 30.0 32.0 Standard Deviation Value Rank 22.52 51 21.14 27 22.63 ��11�:�� Attachment number 2 \nPage 3! City of Clearwater Large Cap Equity Comp as of 12/31/11 Portfolio Performance ("/o) 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/88 � Large Cap Equiry Comp � R1000 Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 3/31/SS Large Cap Equiry Comp 1017 -0.90 -0.90 13.00 014 335 9.44 R1000 11.85 1.51 1.51 14.81 -0.02 334 9.43 Asset Growth ($000) Beginning Market Value 146,315 162,657 162,657 84,606 161,257 149,391 18,032 Net Contributions & Withdrawals 9,498 9,496 9,496 43,366 43,366 43,366 43,366 Gain/Loss + Income 15,742 -598 -598 43,584 -33,068 -21,201 110,157 Ending Market Value 171,555 171,555 171,555 171,555 171,555 171,555 171,555 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Apple Inc Information Technology 5.54 Energy 14.07 Exxon Mobil Corp Energy 5.44 Materials 7.94 Microsoft Corp Information Technology 317 Industrials 10.50 Google Inc Information Technology 311 Consumer Discretionary 1519 Philip Morris Intl I Consumer Staples 2.85 Consumer Staples 1212 Monsanto Co New Materials 2.06 Health Care 8.83 Qualcomm Inc Information Technology 2.04 Financials 631 Wal Mart Stores Inc Consumer Staples 1.94 Information Technology 23.80 Johnson & Johnson Health Care 1.92 Telecom Services 0.00 Oracle Systems Corp Information Technology 1.91 Utilities 1.24 ��11�:�� Holdings and allocations only include SMA accounts. 35 City of Clearwater Large Cap Equity Comp as of 12/31/11 � � a� � � N � � 10.0 9.5 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 0.0 Risk/Return Analysis Periods from 3/88 to 12/11 Alpha Beta R-Squared 0.04 0.98 0.96 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 Annualized Standard Deviation% L Large Cap Equity Comp ;. R1000 T 91-Day Treasury Bill Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio 9.44 16.57 9.43 16.60 4.04 1.20 Holdings and allocations only include SMA accounts. 36 033 -0.01 032 0.00 Attachment number 2 \nPage 4i ��11�:�� 2o°io 1 s�io 16�io 14�io Iz�io 1 o�io s�io 6�io 4% 2% 0% -2% -4% -6% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 4 City of Clearwater Large Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years 13.28 6.19 11.08 17.95 2.52 3.60 5.54 5.02 6.67 9.26 7.21 12.10 2.20 8.86 15.15 -0.94 0.49 2.72 3.37 4.45 7.17 4.02 11.81 2.08 8.41 14.24 -1.50 -0.15 2.32 2.82 3.80 6.48 3.20 11.64 1.09 7.91 14.07 -1.61 -0.23 2.23 2.65 3.65 6.17 2.94 8.23 -5.69 4.39 11.81 -3.24 -1.43 1.22 2.08 3.32 5.81 2.86 L, Large Cap Equity Comp Net Ret 10.17 -0.90 Rank 91 87 � R1000 Net Ret 11.85 1.51 Rank 39 66 7.62 13.00 -1.68 0.14 1.95 2.88 3.89 6.64 3.35 78 88 80 37 81 44 46 44 48 8.56 14.81 -1.42 -0.02 2.41 2.95 3.97 6.57 3.34 34 34 46 42 40 43 42 46 48 37 I[�'ii�:�7 so°io 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% Attachment number 2 \nPage 4; City of Clearwater Large Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 High 6.19 21.22 39.27 -27.80 10.93 19.93 11.98 19.81 41.03 -6.83 lst Qt 2.20 17.07 29.85 -35.89 6.14 15.93 8.40 12.56 31.54 -20.89 Median 2.08 15.13 26.78 -36.95 5.54 15.78 5.10 10.92 28.73 -22.00 3rd Qt 1.09 14.94 26.47 -37.19 5.25 15.46 4.90 10.82 28.60 -22.08 Low -5.69 12.16 21.28 -41.46 0.65 11.16 3.97 8.99 24.65 -23.79 L, Large Cap Equity Comp Net Ret -0.90 16.87 Rank 87 26 � R1000 Net Ret 1.51 16.10 Rank 66 33 24.59 -35.23 89 22 28.42 -37.60 37 81 7.76 11.52 12 93 5.77 15.46 32 75 38 8.63 11.24 23 41 6.27 11.39 38 40 31.37 -22.02 27 54 29.90 -21.65 39 42 I[�'ii�:�7 Attachment number 2 \nPage 4; City of Clearwater Risk Measure Summary Large Cap Equity Comp Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 2 1 4 3 9 8 31 27 Positive Periods 2 3 8 9 11 12 64 68 Up Market Capture 0.88 0.95 0.96 0.99 Down Market Capture 1.03 1.04 0.97 0.98 Batting Average 0.00 0.50 0.65 0.52 Worst Quarter � 15.13 � 14.68 � 15.13 � 14.68 �20.96 �22.4� �20.96 �22.48 Best Quarter 10.17 11.85 16.91 16.49 16.91 16.49 20.12 21.88 Worst 4 Quarters �0.90 1.51 m0.90 0.91 �37.57 �38.26 �37.57 m38.26 Best 4 Quarters �0.90 1.51 49.31 51.57 49.31 51.57 4931 51.57 Standard Deviation 21.62 21.71 20.93 21.64 16.57 16.60 Beta 0.99 0.96 0.98 Alpha �0.37 0.01 0.04 R-Squared 0.99 0.99 0.96 Sharpe Ratio 0.59 0.68 �0.06 �0.07 0.33 0.32 Treynor Ratio 12.99 � 1.39 5.53 Tracking Error 2.01 2.11 3.17 Information Ratio �0.82 �0.00 �0.01 I[�'ii�:�7 39 18.9 18.0 17.1 � 16.2 � a� 0 15.3 � � 14.4 � N 13.5 � � 12.6 11.7 10.9 10.0 15.0 Attachment number 2 \nPage 4� City of Clearwater Return vs Risk Total Returns of Large Neutral Portfolios 3 Years Ending 12/31/11 2.5 2.0 1.5 � 1.0 � a� 0 0.5 � � 0.0 � N -0.5 � � -1.0 -1.5 -2.0 -2.5 17.0 16.2 17.4 18.6 L Large Cap Equity Comp i R1000 Median 19.8 21.0 22.2 23.4 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 13.00 88 14.81 34 14.24 5 Years Ending 12/31/11 24.6 25.8 27.0 Standard Deviation Value Rank 21.62 64 21J1 65 21.28 18.0 19.0 L Large Cap Equity Comp i R1000 Median 20.0 21.0 22.0 23.0 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 0.14 37 -0.02 42 -0.15 40 24.0 25.0 Standard Deviation Value Rank 20.93 22 21.64 69 21.14 ��11�:�� Attachment number 2 \nPage 4; City of Clearwater ING Investment Mgmt as of 12/31/11 Portfolio Performance ("/o) 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 � ING Investment Mgmt � R1000G Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 12/31/87 ING Investment Mgmt 9.69 3.04 3.04 14.51 3.28 4.63 10.74 R1000G 10.60 2.63 2.63 18.02 2.50 2.60 8.86 Asset Growth ($000) Beginning Market Value 84,056 89,481 89,481 42,416 54,192 49,832 17,469 Net Contributions & Withdrawals -1 -2 -2 23,385 23,385 23,385 23,385 Gain/Loss + Income 8,143 2,719 2,719 26,397 14,621 18,981 51,344 EndingMarketValue 92,198 92,198 92,198 92,198 92,198 92,198 92,198 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Apple Inc Information Technology 7.07 Energy 12.71 Exxon Mobil Corp Energy 6.23 Materials 4.04 Microsoft Corp Information Technology 4.04 Industrials 11.82 Google Inc Information Technology 3.97 Consumer Discretionary 1619 Philip Morris Intl I Consumer Staples 3.64 Consumer Staples 11.52 Monsanto Co New Materials 2.62 Health Care 9.86 Qualcomm Inc Information Technology 2.60 Financials 5.23 Oracle Systems Corp Information Technology 2.44 Information Technology 28.64 Danaher Corp Industrials 2.41 Telecom Services 0.00 Starbucks Corp Consumer Discretionary 2.20 Utilities 0.00 ��11�:�� 41 City of Clearwater ING Investment Mgmt as of 12/31/11 � � a� � � N � � � 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 0.0 Risk/Return Analysis Periods from 12/87 to 12/11 Alpha Beta R-Squared 0.59 0.83 0.93 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio i ING Investment Mgmt 10.74 16.49 <. R1000G 8.86 18.94 T 91-Day Treasury Bill 4.06 119 42 0.40 0.21 0.25 0.00 Attachment number 2 \nPage 4i ��11�:�� 30% 25% 20% 15% 10% 5% �% -5% -l�% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 4 City of Clearwater Large Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years 13.36 6.73 12.75 24.26 3.11 5.48 5.91 5.95 6.93 9.99 6.98 10.87 2.02 9.69 17.49 0.53 3.18 4.50 4.96 5.71 8.11 4.74 9.73 -035 7.30 15.57 -0.68 2.23 3.29 4.10 4.79 7.24 3.67 8.29 -4.06 5.97 14.39 -2.87 0.90 2.24 3.15 4.02 6.27 2.76 6.71 -8.86 2.74 11.34 -431 -1.04 0.08 1.30 2.34 5.13 1.88 i ING Investment Mgmt Net Ret 9.69 3.04 Rank 50 17 � R1000G Net Ret 10.60 2.63 Rank 31 20 9.84 14.51 0.08 21 72 40 9.45 18.02 0.30 29 22 33 43 3.28 3.91 24 34 2.50 3.57 41 43 5.03 5.67 23 27 3.81 4.12 60 70 8.13 4.63 23 28 6.70 2.60 62 78 I[�'ii�:�7 6o°io so�io 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% Attachment number 2 \nPage 4� City of Clearwater Large Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 High 6.73 26.12 54.26 -28.78 26.93 18.07 19.42 19.31 48.42 -9.80 lst Qt 2.02 19.23 40.87 -35.37 19.47 11.84 12.70 12.98 33.05 -20.08 Median -035 16.90 34.60 -38.47 13.78 8.69 8.67 10.33 29.80 -24.48 3rd Qt -4.06 13.38 30.98 -42.20 10.95 5.02 5.60 6.39 25.94 -27.67 Low -8.86 9.66 24.07 -49.17 6.24 -3.09 4.00 4.76 19.03 -33.45 i ING Investment Mgmt Net Ret 3.04 17.10 Rank 17 46 � R1000G Net Ret 2.63 16.72 Rank 20 53 24.43 -33.18 93 11 37.21 -38.43 35 49 17.10 7.14 33 64 11.82 9.09 68 49 44 12.02 10.27 32 51 5.27 6.30 81 79 30.00 -22.22 48 30 29.75 -27.89 51 76 I[�'ii�:�7 zsi zoi �si �oi si oi -s i -�oi Attachment number 2 \nPage 4! City of Clearwater December 31, 2011 Cumulative Performance Comparison Total Returns of Equity Portfolios � zn � High 24.09 �SCQc �x.xs Mcdian ]53] 3rd Qt ] 3.54 Low A.47 i iNCi ii2vcst»2cnt Mg*n2t Rcturn ] 4.5 ] Rank 59 � R]OOOCi Rcturn ] A.02 Rank 30 � �.�, � 14.0 % 12.0% 1 O.O % 8.0 % 6.0 % 4.0 % 2.0 % O.O % -2.0 % -4.0 % -6.0 % 9n� �n� 9.45 ] 3.65 4.sc x.os 1.A0 4.C1 0.39 2.70 -3. ] ] -2.65 3.7] S.OA 30 45 4.C9 5.02 22 4C 3/]] ]2/]O 14.09 A21 x.ss z.�z 42A -O.A7 22C -2.97 -].73 -6.SA 4.59 -O.AA 4A 50 5. ] 9 -0.47 44 47 ING Investment Mgmt Value Added Analysis - Net of Fee 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 � Quarterly Value Added vs. R1000G 45 - Cumulative Value Added '°�'° 2 Yr Rolling Avg (A�vivalized) Attachment number 2 \nPage 5i City of Clearwater Risk Measure Summary ING Investment Mgmt Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 1 3 3 7 7 28 31 Positive Periods 3 3 9 9 13 13 68 65 Up Market Capture 1.01 0.92 0.93 0.94 Down Market Capture 0.98 l.l 1 0.91 0.79 Batting Average 0.75 0.50 0.55 0.54 Worst Quarter � 12.86 � 13.14 � 12.86 � 13.14 � 1�.51 �22.79 � 18.51 �22.79 Best Quarter 9.69 10.60 14.65 16.32 14.65 1632 23.26 26.75 Worst 4 Quarters 3.04 2.63 3.04 2.63 �33.1� �3�.43 �33.74 m45.64 Best 4 Quarters 3.04 2.63 43.38 49.75 43.38 49.75 4438 49.75 Standard Deviation 19.23 19.72 19.33 21.26 16.49 18.94 Beta 0.95 0.89 0.83 Alpha �0.57 0.18 0.59 R-Squared 0.96 0.96 0.93 Sharpe Ratio 0.75 0.91 0.09 0.05 0.40 0.25 Treynor Ratio 15.11 2.02 8.00 Tracking Error 4.16 4.64 5.44 Information Ratio �0.7� 0.05 0.21 I[�'ii�:�7 46 26.0 24.0 22.0 � 20.0 � a� 0 18.0 � � 16.0 � N 14.0 � � 12.0 10.0 8.0 6.0 13.0 Attachment number 2 \nPage 5 City of Clearwater Return vs Risk Total Returns of Large Growth Portfolios 3 Years Ending 12/31/11 7.0 6.0 5.0 � 4.0 � a� 0 3.0 � � 2.0 � N 1.0 � � 0.0 -1.0 -2.0 -3.0 15.0 14.5 16.0 17.5 i ING Investment Mgmt i R1000G Median 19.0 20.5 22.0 23.5 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 14.51 72 18.02 22 15.57 5 Years Ending 12/31/11 25.0 26.5 28.0 Standard Deviation Value Rank 19.23 32 19.72 38 20.35 16.4 17.8 i ING Investment Mgmt [ R1000G Median 19.2 20.6 22.0 23.4 24.8 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 3.28 24 2.50 41 2.23 47 26.2 27.6 29.0 Standard Deviation Value Rank 1933 13 21.26 46 22.00 ��11�:�� Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Ten Largest Holdings Apple Inc Exxon Mobil Corp Microsoft Corp Google Inc Philip Morris Intl I Monsanto Co New Qualcomm Inc Oracle Systems Corp Danaher Corp Starbucks Corp Ten Best Performers Seagate Technology P Pall Corp Wyndham Worldwide Co National-Oilwell Inc Union Pac Corp Philip Morris Intl I Roper Inds Inc New Google Inc Starbucks Corp Macys Inc. City of Clearwater Equity Summary Statistics ING Investment Mgmt Period Ending 12/11 Portfolio 60 90,569,237 107,758,822 21,579,085 1.50 15.40 15.52 1.09 3.35 33.59 11.52 Market Value 6,394,950 5,640,778 3,657,219 3,588,620 3,295,846 2,374,672 2,355,163 2,209,722 2,184,161 1,994,073 Quarterly Ret 61.30 35.29 33.29 32.96 30.51 27.07 26.26 25.57 23.86 22.66 48 % of Portfolio 7.07 6.23 4.04 3.97 3.64 2.62 2.60 2.44 2.41 2.20 Ten Worst Performers Amazon Com Inc Watson Pharmaceutica Oracle Systems Corp St Jude Med Inc Lam Resh Corp Cardinal Health Inc Waste Connections In Bed Bath & Beyond In Directv Sigma Aldrich Corp Attachment number 2 \nPage 5; R1000G .. . 96,512,033 5,590,219 1.62 16.25 17.17 1.00 3.84 67.90 11.64 Quarterly Ret 6.25 17.39 5.08 25.57 27.07 17.23 12.93 -10.57 12.22 23.86 Quarterly Ret -19.95 -11.59 -10.57 -4.64 -2.53 -2.51 -1.75 1.15 1.21 Item' #g5 City of Clearwater Equity Contribution to Return ING Investment Mgmt Period Ending 12/11 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Ten Best Contributors Exxon Mobil Corp Google Inc Philip Morris Intl I Seagate Technology P Wyndham Worldwide Co Starbucks Corp Union Pac Corp Monsanto Co New Roper Inds Inc New Apple Inc Ten Worst Contributors Oracle Systems Corp Amazon Com Inc Watson Pharmaceutica St Jude Med Inc Cardinal Health Inc Lam Resh Corp Waste Connections In Michael Kors Hldgs L Sigma Aldrich Corp Directv Portfolio 60 90,569,237 107,758,822 21,579,085 1.50 15.40 15.52 1.09 3.35 33.59 11.52 Market Value 5,640,778 3,588,620 3,295,846 920,860 1,554,056 1,994,073 1,501,170 2,374,672 1,528,130 6,394,950 Market Value 2,209,722 913,968 1,012,505 936,733 1,067,637 1,030,637 852,361 615,850 519,855 840,063 49 % of Portfolio 6.23 3.97 3.64 1.02 1.72 2.20 1.66 2.62 1.69 7.07 % of Portfolio 2.44 1.O1 1.12 1.04 1.18 1.14 0.94 0.68 0.57 0.93 Attachment number 2 \nPage 5; R1000G .. . 96,512,033 5,590,219 1.62 16.25 17.17 1.00 3.84 67.90 11.64 Quarterly Ret 1739 25.57 27.07 6130 33.29 23.86 30.51 17.23 26.26 6.25 Quarterly Ret -10.57 -19.95 -11.59 -4.64 -2.51 -2.53 -1.75 1.38 Item'�15 Attachment number 2 \nPage 5� City of Clearwater Equity Sector Attribution Analysis ING Investment Mgmt Quarter Ending 12/ 11 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 11.24 1034 17.29 18.73 �0.16 0.07 �0.09 Materials 4.92 5.11 16.02 15.61 0.02 �0.01 0.01 Industrials 11.71 12.08 15.46 15.94 �0.06 �0.02 �0.0� Consumer Discretionary 16.77 14.45 7.47 9.43 �0.33 �0.03 �0.36 Consumer Staples 12.38 13.03 12.16 8.97 0.39 0.01 0.41 Health Care 10.07 11.05 1.76 7.36 �0.56 0.03 �0.53 Financials 4.12 3.74 14.59 12.18 0.10 0.01 0.10 Information Technology 28.80 28.87 6.50 7.11 �0.18 0.00 �0.17 Telecom. Services 0.00 1.24 8.15 0.00 0.03 0.03 Utilities 0.00 0.09 3.86 0.00 0.01 0.01 loo.00 loo.o0 9.9s 10.62 �a.77 0.10 aa.�7 Index - R1000G Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ]*[ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ]*[ Index Sector Return - Index Total Return ] Trading Effect -0.09% [ Actual Return 9.85% ]-[ Buy Hold Return 9.95% ] 50 �[i�'ii�:�•7 Energy Materials Industrials Con. Discretionary Consumer Staples Health Care Financials Infomation Tech. Telecom. Services Utilities Attachment number 2 \nPage 5; City of Clearwater Equity Sector Attribution Chart ING Investment Mgmt Quarter Ending 12/ 11 % Allocation % Return % Variance � ING Investment Mgmt 0 R1000G 51 �[i�'ii�:�•7 Attachment number 2 \nPage 5i City of Clearwater Aletheia Research as of 12/31/11 Portfolio Performance ("/o) 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 -4.0 -6.0 -8.0 -10.0 -12.0 -14.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/07 � Aletheia Research � R1000V Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 6/30/07 Aletheia Research 8.86 -1318 -1318 11.50 -4.58 R1000V 1311 039 039 11.55 -4.22 Asset Growth ($000) Beginning Market Value 24,193 30,336 30,336 11,439 19,365 Net Contributions & Withdrawals -1 -1 -1 10,481 10,481 Gain/Loss + Income 2,143 -3,999 -3,999 4,416 -3,511 Ending Market Value 26,336 26,336 26,336 26,336 26,336 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Exxon Mobil Corp Energy 2.56 Energy 18.95 Noble Energy Inc Energy 2.54 Materials 22.05 Intl Business McHn Information Technology 234 Industrials 5.75 Kraft Foods Inc Consumer Staples 2.26 Consumer Discretionary 11.60 McDonalds Corp Consumer Discretionary 218 Consumer Staples 1430 Wal Mart Stores Inc Consumer Staples 2.02 Health Care 512 Caterpillar Inc Industrials 2.01 Financials 10.20 Boeing Co Industrials 1.97 Information Technology 6.29 Barrick Gold Corp Materials 1.97 Telecom Services 0.00 Peabody Energy Corp Energy 1.95 Utilities 5.74 ��11�:�� 52 � � a� � � N � � Attachment number 2 \nPage 5 City of Clearwater Aletheia Research as of 12/31/11 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0 -2.5 -3.0 -3.5 -4.0 -4.5 -5.0 0.0 Risk/Return Analysis Periods from 6/07 to 12/11 Alpha Beta R-Squared 0.05 1.02 0.91 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio a Aletheia Research -4.58 25.81 -0.22 -0.02 ;. R1000V -4.22 23.94 -0.22 T 91-Day Treasury Bill 1.08 0.83 0.00 ��11�:�� 53 2o°io Is�io 1 o�io s�io o�io -s�io -lo�io -IS�io Attachment number 2 \nPage 5� City of Clearwater Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/11 Last Qtr High 14.86 lst Qt 13.10 Median 12.16 3rd Qt 11.O1 Low 6.66 a Aletheia Research Net Ret 8.86 Rank 85 � R1000V Net Ret 13.11 Rank 23 Last Year 11.59 3.62 0.36 -2.82 -7.48 -13.18 98 0.39 49 Last 2 Last 3 Last 4 Years Years Years 12.33 18.95 1.76 8.96 14.35 -1.09 7.36 12.63 -2.55 5.61 11.59 -335 2.89 8.53 -5.10 54 0.78 98 7.68 43 11.50 78 11.55 75 -3.70 82 -3.24 73 I[�'ii�:�7 so°io 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 5! City of Clearwater Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 2011 11.59 3.62 0.36 -2.82 -7.48 a Aletheia Research Net Ret -13.18 Rank 98 � R1000V Net Ret 0.39 Rank 49 2010 22.86 16.54 14.46 12.60 9.91 16.98 20 15.51 39 55 2009 42.52 29.44 24.33 20.58 14.71 36.50 12 19.69 83 11: -26.75 -33.62 -36.24 -38.45 -43.31 -37.97 69 -36.85 60 I[�'ii�:�7 zsi zoi �si �oi si oi -s i -�oi Attachment number 2 \nPage 6i City of Clearwater December 31, 2011 Cumulative Performance Comparison Total Returns of Equity Portfolios � zn � High 24.09 �SCQc �x.xs Mcdian ]53] 3rd Qt ] 3.54 Low A.47 a Alcthcia Rcscarch Rcturn ] ] .50 Rank AA � R]OOOV Rcturn ]].55 Rai2k A7 � �.�, � 14.0 % 12.0% 1 O.O % 8.0 % 6.0 % 4.0 % 2.0 % O.O % -2.0 % -4.0 % -6.0 % -8.0 % -10.0% 9n� �n� 9.45 ] 3.65 4.sc x.os 1.A0 4.C1 0.39 2.70 -3. ] ] -2.65 -2.07 0.72 �� xx -�.sz z.zx x� �x 3/]] ]2/]O 14.09 A21 x.ss z.�z 42A -O.A7 22C -2.97 -].73 -6.SA 2.3A -0.32 73 4C 0.0 1 -4.42 x� x� Aletheia Research Value Added Analysis - Net of Fee 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 � Quarterly Value Added vs. R1000V 56 - Cumulative Value Added '°�'° 2 Yr Rolling Avg (A�vivalized) Attachment number 2 \nPage 6 City of Clearwater Risk Measure Summary Aletheia Research Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 2 2 4 4 9 10 Positive Periods 2 2 8 8 9 8 Up Market Capture 0.67 1.02 1.02 Down Market Capture 1.42 1.02 1.02 Batting Average 0.00 0.50 0.50 Worst Quarter �20.78 � 16.21 �20.7� � 16.77 �26.26 �22.17 Best Quarter 8.86 13.11 21.47 18.24 21.47 18.24 Worst 4 Quarters � 13.1 � 039 � 13.18 � L90 �42.20 m42.42 Best 4 Quarters �13.18 039 59.12 53.57 59.12 53.57 Standard Deviation 25.36 24.32 25.81 23.94 Beta 1.O1 1.02 Alpha 0.03 0.05 R-Squared 0.93 0.91 Sharpe Ratio 0.45 0.47 �0.22 m0.22 Treynor Ratio 11.30 �5.52 Tracking Error 6.71 8.00 Information Ratio �0.00 �0.02 I[�'ii�:�7 57 21.9 Zo.l 18.4 � 16.6 � � 14.8 0 � � 13.0 � � 11.2 .� � �, 9.4 d 7.6 5.8 4.0 12.0 Attachment number 2 \nPage 6; City of Clearwater Return vs Risk Total Returns of Large Value Portfolios 3 Years Ending 12/31 / 11 14.4 16.8 19.2 21.6 24.0 26.4 28.8 31.2 33.6 36.0 Historical Standard Deviation of Return a Aletheia Research � R1000V Median Annualized Net of Fee Return Value Rank 11.50 78 11.55 75 12.63 58 Standard Deviation Value Rank 25.36 81 24.32 68 23.51 �Ei�'ii�:�•7 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Ten Largest Holdings Exxon Mobil Corp Noble Energy Inc Intl Business McHn Kraft Foods Inc McDonalds Corp Wal Mart Stores Inc Caterpillar Inc Boeing Co Barrick Gold Corp Peabody Energy Corp Ten Best Performers Cemex S A Lennar Corp- Cl A Goodyear Tire & Rubr Continental Resource Noble Energy Inc Novagold Res Inc Union Pac Corp Dow Chem Co Canadian Nat Res Ltd Dean Foods Co New City of Clearwater Equity Summary Statistics Aletheia Research Period Ending 12/11 Market Value 641,633 635,245 585,658 566,191 546,799 505,271 503,736 492,912 492,773 487,214 Quarterly Ret 70.57 45.52 40.44 37.92 33.64 31.47 30.51 29.19 28.01 26.27 Portfolio 75 25,071,853 51,455,600 14,695,040 1.90 15.07 13.63 1.20 1.56 65.56 -0.60 59 % of Portfolio 2.56 2.54 2.34 2.26 2.18 2.02 2.01 1.97 1.97 1.95 Ten Worst Performers Molycorp Inc Del Sunpower Corp Kinross Gold Corp Overseas Shipholdng Dole Food Co Inc New Chesapeake Energy Co Alcoa Inc Bank Amer Corp Market Vectors Etf T Atp Oil & Gas Corp Attachment number 2 \nPage 6; R1000V 656 73,654,796 4,607,184 2.64 13.63 14.53 1.07 1.36 75.15 0.41 Quarterly Ret 1739 33.64 5.48 12.12 15.10 15.86 23.37 21.98 -2.71 -2.07 Quarterly Ret -27.05 -22.99 -22.87 -19.09 -13.50 -12.76 -936 -8.98 -6.55 Item' #45 City of Clearwater Equity Contribution to Return Aletheia Research Period Ending 12/11 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Ten Best Contributors Noble Energy Inc Continental Resource Lennar Corp- Cl A Goodyear Tire & Rubr Canadian Nat Res Ltd Novagold Res Inc Caterpillar Inc Exxon Mobil Corp Boeing Co Canadian Oil Sands L Ten Worst Contributors Molycorp Inc Del Kinross Gold Corp Sunpower Corp Dole Food Co Inc New Chesapeake Energy Co Bank Amer Corp Overseas Shipholdng Newmont Mng Corp Hld Market Vectors Etf T Atp Oil & Gas Corp Market Value 635,245 455,296 311,747 328,319 470,862 408,397 503,736 641,633 492,912 471,483 Market Value 402,025 360,012 331,000 322,429 307,156 232,808 107,169 432,072 268,722 384,560 Portfolio 75 25,071,853 51,455,600 14,695,040 1.90 15.07 13.63 1.20 1.56 65.56 -0.60 � % of Portfolio 2.54 1.82 1.25 1.31 1.88 1.63 2.01 2.56 1.97 1.88 % of Portfolio 1.61 1.44 1.32 1.29 1.23 0.93 0.43 1.73 1.07 1.54 Attachment number 2 \nPage 6� R1000V 656 73,654,796 4,607,184 2.64 13.63 14.53 1.07 1.36 75.15 0.41 Quarterly Ret 33.64 37.92 45.52 40.44 28.01 31.47 23.37 1739 21.98 22.04 Quarterly Ret -27.05 -22.87 -22.99 -13.50 -12.76 -8.98 -19.09 -4.10 -6.55 Item' #45 Attachment number 2 \nPage 6; City of Clearwater Equity Sector Attribution Analysis Aletheia Research Quarter Ending 12/ 11 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 16.54 11.81 13.74 18.45 �0.78 0.25 �0.53 Materials 23.03 2.56 7.84 17.75 �2.2� 0.94 � 1.34 Industrials 7.07 8.79 10.26 18.14 �0.56 �0.09 �0.64 Consumer Discretionary 11.06 8.60 17.30 17.51 �0.02 0.11 0.08 Consumer Staples 13.38 833 9.49 10.85 �0.18 �0.12 �0.30 Health Care 5.27 13.20 11.54 11.64 �0.01 0.12 0.11 Financials 11.25 24.72 5.79 11.02 �0.59 0.29 �0.30 Information Technology 6.15 8.80 7.89 13.29 �0.33 �0.00 �0.34 Telecom. Services 0.00 5.07 7.28 0.00 0.30 0.30 Utilities 6.25 8.12 9.34 8.62 0.05 0.08 0.13 100.00 100.00 10.32 13.14 �4.70 1.88 a2.�2 Index - R1000V Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ]*[ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ]*[ Index Sector Return - Index Total Return ] Trading Effect -0.53% [ Actual Return 9.79% ]-[ Buy Hold Return 10.32% ] � �[i�'ii�:�•7 Energy Materials Industrials Con. Discretionary Consumer Staples Health Care Financials Infomation Tech. Telecom. Services Utilities Attachment number 2 \nPage 6i City of Clearwater Equity Sector Attribution Chart Aletheia Research Quarter Ending 12/ 11 % Allocation % Return % Variance � Aletheia Research 0 R1000V 62 �[i�'ii�:�•7 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 -4.0 -6.0 City of Clearwater NTGI-QM R1000V as of 12/31/11 Portfolio Performance ("/o) Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/07 � NTGI-QM R1000V R1000V Attachment number 2 \nPage 6 Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 6/30/07 NTGI-QM R1000V 11.68 -OJ7 -OJ7 11.40 -4.29 R1000V 1311 039 039 11.55 -4.22 Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 38,067 42,840 42,840 30,751 9,499 9,499 9,499 9,499 5,456 682 682 12,772 53,022 53,022 53,022 53,022 63 26,197 9,499 17,325 53,022 ��11�:�� � � � � � � � � Attachment number 2 \nPage 6� City of Clearwater NTGI-QM R1000V as of 12/31/11 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0 -2.5 -3.0 -3.5 -4.0 -4.5 0.0 Risk/Return Analysis Periods from 6/07 to 12/11 Alpha Beta R-Squared -0.03 0.99 1.00 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio n NTGI-QM R1000V -4.29 23.77 -0.23 -015 ;. R1000V -4.22 23.94 -0.22 T 91-Day Treasury Bill 1.08 0.83 0.00 ��11�:�� 64 2o°io 1 s�io 16�io 14�io Iz�io 1 o�io s�io 6�io 4% 2% 0% -2% -4% -6% -8% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 6! City of Clearwater Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/11 Last Qtr 14.86 13.10 12.16 11.O1 6.66 n NTGI-QM R1000V Net Ret 11.68 Rank 59 � R1000V Net Ret 13.11 Rank 23 Last Year 11.59 3.62 0.36 -2.82 -7.48 -0.77 62 0.39 49 Last 2 Years 12.33 8.96 7.36 5.61 2.89 65 7.18 52 7.68 43 Last 3 Years 18.95 14.35 12.63 11.59 8.53 11.40 79 11.55 75 Last 4 Years 1.76 -1.09 -2.55 -3.35 -5.10 -3.34 74 -3.24 73 I[�'ii�:�7 so°io 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 7i City of Clearwater Large Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 2011 11.59 3.62 0.36 -2.82 -7.48 n NTGI-QM R1000V Net Ret -0.77 Rank 62 � R1000V Net Ret 0.39 Rank 49 2010 22.86 16.54 14.46 12.60 9.91 15.75 34 15.51 39 � 2009 42.52 29.44 24.33 20.58 14.71 20.35 77 19.69 83 11: -26.75 -33.62 -36.24 -38.45 -43.31 • :• .1 -36.85 60 I[�'ii�:�7 zsi zoi �si �oi si oi -s i -�oi Attachment number 2 \nPage 7 City of Clearwater December 31, 2011 Cumulative Performance Comparison Total Returns of Equity Portfolios � zn � High 24.09 �SCQc �x.xs Mcdian ]53] 3rd Qt ] 3.54 Low A.47 n NTGi-QM R1000V Rcturn ] ] .40 Rank AA � R]OOOV Rcturn ]].55 Rai2k A7 �.z� �.�,� �,.H� �,.�� OA% 0.2% O.O % -0.2 % -OA% -0.6 % -0.8 % -1.0% -1.2% -I A% 9n� �n� 9.45 ] 3.65 4.sc x.os 1.A0 4.C1 0.39 2.70 -3. ] ] -2.65 -] 22 2.52 x� �c -�.sz z.zx x� �x 3/]] ]2/]O 14.09 A21 x.ss z.�z 42A -O.A7 22C -2.97 -].73 -6.SA O.A7 -4.19 xc xc 0.0 1 -4.42 x� x� NTGI-QM R1000V Value Added Analysis - Net of Fee 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 � Quarterly Value Added vs. R1000V 67 - Cumulative Value Added '°�'° 2 Yr Rolling Avg (A�vivalized) Attachment number 2 \nPage 7; City of Clearwater Risk Measure Summary NTGI-QM R1000V Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 2 2 4 4 10 10 Positive Periods 2 2 8 8 8 8 Up Market Capture 0.93 0.99 0.99 Down Market Capture 0.99 1.00 1.00 Batting Average 0.75 0.92 0.83 Worst Quarter � 16.15 � 16.21 � 16.63 � 16.77 �22.13 �22.17 Best Quarter 11.68 13.11 18.29 18.24 18.29 18.24 Worst 4 Quarters �0.77 039 � 1.78 � 1.90 �42.31 m42.42 Best 4 Quarters �0.77 039 54.33 53.57 5433 53.57 Standard Deviation 24.11 24.32 23.77 23.94 Beta 0.99 0.99 Alpha �0.01 �0.03 R-Squared 1.00 1.00 Sharpe Ratio 0.47 0.47 �0.23 m0.22 Treynor Ratio 11.36 �5.41 Tracking Error 0.89 0.72 Information Ratio �0.21 �0.15 I[�'ii�:�7 68 Zg.o 25.4 22.8 � 20.2 � � 17.6 0 � � 15.0 � � 12.4 .� � �, 9.7 d 7.2 .� 2.0 14.0 Attachment number 2 \nPage 7; City of Clearwater Return vs Risk Total Returns of Equity Portfolios 3 Years Ending 12/31 / 11 15.8 17.6 19.4 21.2 23.0 24.8 26.6 28.4 30.2 32.0 Historical Standard Deviation of Return n NTGI-QM R1000V � R1000V Median Annualized Net of Fee Return Value Rank 11.40 88 11.55 87 15.31 � Standard Deviation Value Rank 24.11 61 24.32 64 22.98 �Ei�'ii�:�•7 Attachment number 2 \nPage 7� City of Clearwater Mid Cap Equity Comp as of 12/31/11 Portfolio Performance ("/o) 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 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/88 � Mid Cap Equiry Comp � R Mid Cap Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 3/31/SS Mid Cap Equiry Comp 9.76 -010 -010 22.95 3.59 632 11.75 R Mid Cap 1231 -1.56 -1.56 2017 1.41 6.99 10.98 Asset Growth ($000) Beginning Market Value 65,719 81,829 81,829 34,302 82,918 76,367 15,585 Net Contributions & Withdrawals -2 -9,005 -9,005 -9,005 -9,005 -9,005 -9,005 Gain/Loss + Income 6,413 -694 -694 46,833 -1,783 4,769 65,550 EndingMarketValue 72,130 72,130 72,130 72,130 72,130 72,130 72,130 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Allstate Corp Financials 219 Energy 838 Transdigm Group Inc Industrials 215 Materials 4.68 Duke-Weeks Realry Co Financials 211 Industrials 18.68 Sonoco Prods Co Materials 2.00 Consumer Discretionary 1611 Lincoln Natl Corp In Financials 1.98 Consumer Staples 339 Computer Sciences Co Information Technology 1.92 Health Care 11.61 Donnelley R R& Sons Industrials 1.78 Financials 15.99 Brunswick Corp Consumer Discretionary 1.77 Information Technology 17.58 Carlisle Corp Industrials 1.75 Telecom Services 0.00 Dover Corp Industrials 1.66 Utilities 3.57 ��11�:�� Holdings and allocations only include SMA accounts. 70 City of Clearwater Mid Cap Equity Comp as of 12/31/11 � � a� � N � � � 12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 0.0 Risk/Return Analysis Periods from 3/88 to 12/11 Alpha Beta R-Squared 0.10 1.14 0.82 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 M Mid Cap Equity Comp ;. R Mid Cap T 91-Day Treasury Bill Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio 11J5 23.59 10.98 18.68 4.04 1.20 Holdings and allocations only include SMA accounts. 71 033 0.11 037 0.00 Attachment number 2 \nPage 7; ��11�:�� 30% 25% 20% 15% 10% 5% �% -5% -l�% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 7i City of Clearwater Midcap Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years 20.22 6.44 14.66 24.88 8.92 7.47 10.44 11.04 11.37 13.23 10.57 16.35 5.42 13.88 21.68 7.01 6.68 8.61 8.93 10.36 13.02 10.24 14.54 -1.57 11.59 20.40 2.82 4.01 5.77 6.76 8.72 11.43 8.52 12.34 -435 9.33 18.78 0.91 1.40 4.05 5.29 7.04 10.49 7.17 5.46 -9.24 5.41 13.32 -2.20 -0.08 1.70 3.89 5.91 9.41 6.50 M Mid Cap Equity Comp Net Ret 9.76 -0.10 13.09 22.95 Rank 89 41 31 19 � R Mid Cap Net Ret 12.31 -1.56 11.15 20.17 Rank 75 48 56 51 1.99 3.59 69 52 0.39 1.41 78 72 �z 5.03 5.43 55 68 3.60 4.85 80 81 6.52 9.71 87 92 6.66 9.94 79 83 6.32 99 � •• I[�'ii�:�7 �o°io 6o�io so�io 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% Attachment number 2 \nPage 7 City of Clearwater Midcap Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 2011 2010 2009 2008 2007 2006 2005 2004 High 6.44 31.99 63.14 -21.07 14.95 27.40 17.47 26.82 1 st Qt 5.42 27.04 41.17 -26.71 8.67 18.75 12.73 21.31 Median -1.57 23.69 37.16 -35.94 3.46 14.43 11.70 20.53 3rd Qt -435 22.19 34.77 -37.68 -0.52 10.56 9.22 17.45 Low -9.24 15.86 19.11 -44.82 -2.17 8.24 2.29 15.01 M Mid Cap Equity Comp Net Ret -0.10 28.03 Rank 41 19 � R Mid Cap Net Ret -1.56 25.49 Rank 48 39 2003 2002 44.04 -4.15 39.21 -9.81 35.67 -1233 33.40 -14.56 27.16 -16.55 45.33 -41.79 10.26 12.53 7.85 14.48 38.95 -19.87 18 91 15 56 79 96 28 99 40.47 -41.46 5.59 15.27 12.65 20.23 40.08 -16.19 27 88 44 46 27 52 12 87 73 I[�'ii�:�7 Attachment number 2 \nPage 7� City of Clearwater Risk Measure Summary Mid Cap Equity Comp Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 1 3 3 7 8 30 31 Positive Periods 3 3 9 9 13 12 65 64 Up Market Capture 0.96 0.99 0.99 1.16 Down Market Capture 0.91 0.83 0.91 1.17 Batting Average 0.75 0.75 0.70 0.57 Worst Quarter � 17.17 � 18.90 � 17.17 � 18.90 �26.7� �27.28 �26.78 �27.28 Best Quarter 9.76 1231 23.05 20.80 23.05 20.80 49.24 20.80 Worst 4 Quarters �0.10 �L56 m0.10 mL56 �4L79 �4L46 �4L79 m4L46 Best 4 Quarters �0.10 �L56 65.80 67.72 65.80 67.72 77.74 67.72 Standard Deviation 23.23 24.93 24.81 25.60 23.59 18.68 Beta 0.93 0.96 1.14 Alpha 0.90 0.51 0.10 R-Squared 0.98 0.98 0.82 Sharpe Ratio 0.98 0.80 0.09 �0.00 0.33 0.37 Treynor Ratio 24.65 2.20 6.74 Tracking Error 3.72 3.46 10.28 Information Ratio 0.52 0.54 0.11 I[�'ii�:�7 74 Attachment number 2 \nPage 7! City of Clearwater Artisan Partners as of 12/31/11 Portfolio Performance ("/o) 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 7/31/Ol � Artisan Partners � R Mid Cap G Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 7/31/Ol Artisan Partners 6.08 0.07 0.07 2635 710 7.45 7.44 R Mid Cap G 11.23 -1.66 -1.66 22.06 2.44 5.28 4.90 Asset Growth ($000) Beginning Market Value 33,682 40,886 40,886 15,064 36,468 30,811 29,914 Net Contributions & Withdrawals -1 -5,004 -5,004 -5,004 -5,004 -5,004 -5,004 Gain/Loss + Income 2,048 -153 -153 25,668 4,265 9,921 10,819 Ending Market Value 35,729 35,729 35,729 35,729 35,729 35,729 35,729 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Ihs Inc Industrials 336 Energy 9.80 Regeneron Pharmaceut Health Care 2.93 Materials 0.00 Agilent Technologies Health Care 2.77 Industrials 13.56 Dresser-Rand Group I Energy 2.72 Consumer Discretionary 21.53 Coach Inc Consumer Discretionary 2.71 Consumer Staples 2.48 Salesforce Com Inc Information Technology 2.62 Health Care 21.61 Trimble Navigation L Information Technology 2.57 Financials 4.01 Cameron Internationa Energy 2.54 Information Technology 27.00 Cerner Corp Health Care 2.52 Telecom Services 0.00 Precision Castparts Industrials 2.52 Utilities 0.00 ��11�:�� 75 � � a� � � N � � City of Clearwater Artisan Partners as of 12/31/11 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 0.0 Risk/Return Analysis Periods from 7/Ol to 12/11 Alpha Beta R-Squared 0.58 0.92 0.95 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio r Artisan Partners 7.44 20.22 ;. R Mid Cap G 4.90 20.53 T 91-Day Treasury Bill 2.01 0.52 76 0.27 031 0.14 0.00 Attachment number 2 \nPage 8i ��11�:�� 30% 25% 20% 15% 10% 5% �% -5% -1�% -15% -20% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 8 City of Clearwater Midcap Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years 16.62 6.76 16.84 26.00 4.86 7.10 8.03 9.04 9.47 12.22 9.53 13.69 0.71 13.32 22.52 2.32 5.48 6.13 7.65 8.36 11.01 8.22 12.13 -1.99 10.96 20.18 0.22 3.18 4.41 6.25 7.21 10.57 7.34 10.55 -5.91 8.91 18.48 -1.70 1.82 3.74 5.08 6.18 9.37 5.76 7.28 -16.27 5.41 15.08 -3.83 -1.90 1.39 4.46 5.63 9.16 4.67 r Artisan Partners Net Ret 6.08 Rank 98 � R Mid Cap G Net Ret 11.23 Rank 63 0.07 15.43 26.35 31 11 2 -1.66 11.49 22.06 45 44 30 3.61 7.10 11 5 0.31 2.44 49 60 �� 7.73 8.08 8 19 3.76 4.91 73 81 9.05 11.56 8 9 6.18 9.73 75 67 7.45 45 5.28 79 I[�'ii�:�7 �o°io 6o�io so�io 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% Attachment number 2 \nPage 8; City of Clearwater Midcap Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 High 6.76 35.50 57.39 -33.13 25.01 20.90 23.20 21.82 51.00 -2.74 lst Qt 0.71 29.96 46.22 -37.54 21.02 14.95 14.84 18.98 44.86 -1331 Median -1.99 26.80 39.68 -40.90 16.48 13.34 13.04 16.35 37.89 -2035 3rd Qt -5.91 24.98 36.32 -44.99 8.66 9.95 10.19 13.13 33.38 -24.78 Low -16.27 18.56 26.78 -50.49 4.30 5.97 5.73 10.59 29.41 -30.09 r Artisan Partners Net Ret 0.07 33.15 Rank 31 12 � R Mid Cap G Net Ret -1.66 26.39 Rank 45 57 51.38 -42.87 15 62 46.30 -4432 24 70 22.31 10.94 17 65 11.41 10.64 65 65 �a 10.19 16.07 75 60 12.10 15.48 65 60 33.84 -23.37 72 67 42.72 -27.41 25 85 I[�'ii�:�7 30 % 25 % 20 % ]5% ]O% 5% O% -5 % -]O% Attachment number 2 \nPage 8; City of Clearwater December 31, 2011 Cumulative Performance Comparison Total Returns of Equity Portfolios ]2/]] 9/]] 6/]] 3/]] ]2/]O High 24.09 9.45 ]3.65 ]4.09 A2] ] st Qt ] A.AS 436 A.OS A.55 2.72 Mcdiai2 ]53] ].AO 4.6] 42A -O.A7 3rd Qt ]3.54 039 2.70 226 -2.97 Low A.47 -3.]] -2.65 -].73 -6.SA r Artisan Part�2crs Rctun2 2635 ]]27 ]2.69 ]235 4.A] Rank 2 3 7 9 ]4 � R Mid Cap Ci Rcturn 22AC S.A9 C.SA 7.C4 0.97 Rank 9 ]5 35 30 36 3 5.0 % 30.0 % 25.0 % 20.0 % 1 5.0 % 1 O.O % 5.0 % O.O % -5.0 % -10.0% Artisan Partners Value Added Analysis - Net of Fee 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 � Quarterly Value Added vs. R Mid Cap G - Cumulat3ve Value Added '°�'° 2 Yr Rolling Avg (A�vivalized) 79 Attachment number 2 \nPage 8� City of Clearwater Risk Measure Summary Artisan Partners Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 1 2 3 6 7 13 14 Positive Periods 3 3 10 9 14 13 28 27 Up Market Capture 0.79 0.96 1.02 0.99 Down Market Capture 0.76 0.67 0.84 0.88 Batting Average 0.50 0.50 0.50 0.41 Worst Quarter � 14.74 � 19.33 � 14.74 � 19.33 �27.54 �27.36 �27.54 �27.36 Best Quarter 7.61 11.23 20.50 20.67 20.50 20.67 26.70 27.06 Worst 4 Quarters 0.07 � 1.66 0.07 m 1.66 �42.87 �44.32 �42.87 m44.32 Best 4 Quarters 0.07 �1.66 58.59 62.98 58.59 62.98 58.59 62.98 Standard Deviation 20.97 23.61 24.44 25.80 21.76 23.19 Beta 0.87 0.92 0.92 Alpha 1.50 1.12 0.58 R-Squared 0.95 0.95 0.95 Sharpe Ratio 1.25 0.93 0.23 0.04 0.36 0.24 Treynor Ratio 30.14 6.11 8.50 Tracking Error 5.84 6.04 5.03 Information Ratio 0.50 0.67 0.31 I[�'ii�:�7 ao 29.9 28.1 26.3 � 24.5 � a� 0 22.7 � � 20.9 � N 19.1 � � 17.4 15.6 13.8 12.0 12.0 Attachment number 2 \nPage 8; City of Clearwater Return vs Risk Total Returns of Midcap Growth Portfolios 3 Years Ending 12/31/11 12.0 10.0 � 8.0 � � 6.0 w 0 � � 4.0 � � N 2.0 � �0.0 -2.0 -4.0 16.0 14.2 16.4 r Artisan Partners [ R Mid Cap G Median 18.6 20.8 23.0 25.2 27.4 Historical Standard Deviation of Return Annualized Return Value Rank 2635 2 22.06 30 20.18 5 Years Ending 12/31/11 29.6 31.8 34.0 Standard Deviation Value Rank 20.97 17 23.61 53 23.55 17.8 19.6 r Artisan Partners [ R Mid Cap G Median 21.4 23.2 25.0 26.8 28.6 Historical Standard Deviation of Return Annualized Return Value Rank 7.10 5 2.44 60 3.18 81 30.4 32.2 34.0 Standard Deviation Value Rank 24.44 36 25.80 59 25.42 ��11�:�� Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Ten Largest Holdings Ihs Inc Regeneron Pharmaceut Agilent Technologies Dresser-Rand Group I Coach Inc Salesforce Com Inc Trimble Navigation L Cameron Internationa Cerner Corp Precision Castparts Ten Best Performers Akamai Technologies Amerigroup Corp Woodward Governor Co Mercadolibre Inc Concur Technologies Pall Corp Noble Energy Inc Trimble Navigation L Core Laboratories N Intuitive Surgical I City of Clearwater Equity Summary Statistics Artisan Partners Period Ending 12/11 Market Value 1,145,928 997,740 943,110 928,326 921,704 892,848 876,680 865,744 857,500 856,908 Quarterly Ret 62.37 51.45 49.64 48.13 36.46 35.29 33.64 29.36 27.16 27.10 Portfolio 70 34,084,552 9,028,368 5,696,690 0.39 28.61 25.79 1.18 4.59 23.73 11.44 a2 % of Portfolio 3.36 2.93 2.77 2.72 2.71 2.62 2.57 2.54 2.52 2.52 Ten Worst Performers Green Mtn Coffee Roa Netflix Com Inc Sina Com Ctrip Com Intl Ltd Universal Display Co Ipg Photonics Corp Athenahealth Inc Opentable Inc Broadcom Corp Aruba Networks Inc Attachment number 2 \nPage 8i R Mid Cap G �•• 7,914,950 4,185,386 1.06 20.13 17.87 1.22 3.72 78.53 8.10 Quarterly Ret 15.17 -4.76 11.78 23.14 18.19 -11.22 29.36 18.42 -10.61 6.02 Quarterly Ret -51.74 -38.77 -27.38 -27.24 -23.47 -22.03 -17.51 -14.95 -11.54 It m' # 5 City of Clearwater Equity Contribution to Return Artisan Partners Period Ending 12/11 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Ten Best Contributors Amerigroup Corp Trimble Navigation L Dresser-Rand Group I Noble Energy Inc Mercadolibre Inc Ihs Inc Coach Inc Cameron Internationa Core Laboratories N Lkq Corp Ten Worst Contributors Athenahealth Inc Salesforce Com Inc Ctrip Com Intl Ltd Cerner Corp Universal Display Co Cepheid Inc Broadcom Corp Green Mtn Coffee Roa Sina Com Ipg Photonics Corp Market Value 543,536 876,680 928,326 585,218 365,884 1,145,928 921,704 865,744 581,145 640,704 Market Value 751,536 892,848 339,300 857,500 385,245 705,405 629,772 125,580 228,800 267,573 Portfolio 70 34,084,552 9,028,368 5,696,690 0.39 28.61 25.79 1.18 4.59 23.73 11.44 83 % of Portfolio 1.60 2.57 2.72 1.72 1.07 3.36 2.71 2.54 1.71 1.88 % of Portfolio 2.21 2.62 1.00 2.52 1.13 2.07 1.85 0.37 0.67 0.79 Attachment number 2 \nPage 8 R Mid Cap G �•• 7,914,950 4,185,386 1.06 20.13 17.87 1.22 3.72 78.53 8.10 Quarterly Ret 51.45 2936 23.14 33.64 48.13 15.17 18.19 18.42 27.16 24.50 Quarterly Ret -17.51 -11.22 -27.24 -10.61 -23.47 -1138 -11.54 -51.74 -27.38 Item'# 5 Attachment number 2 \nPage 8� City of Clearwater Equity Sector Attribution Analysis Artisan Partners Quarter Ending 12/ 11 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 7.88 8.98 23.03 22.93 0.01 �0.13 �0.12 Materials 0.00 8.25 15.36 0.00 �0.33 �0.33 Industrials 13.15 14.19 16.74 17.11 �0.05 �0.06 �0.11 Consumer Discretionary 20.21 20.48 5.39 10.37 � 1.01 0.00 � 1.00 Consumer Staples 2.65 6.68 �16.58 �0.23 �0.43 0.46 0.03 Health Care 23.68 14.29 1.00 6.23 � 1.24 �0.4� � 1.72 Financials 5.30 6.51 3.44 12.87 �0.50 �0.02 �0.52 Information Technology 27.13 18.65 3.61 8.67 � 1.37 �0.22 � 1.60 Telecom. Services 0.00 1.65 6.13 0.00 0.09 0.09 Utilities 0.00 032 3.86 0.00 0.02 0.02 100.00 100.00 6.06 11.32 �4.59 �0.67 a5.26 Index - R Mid Cap G Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ]*[ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ]*[ Index Sector Return - Index Total Return ] Trading Effect 0.29% [ Actual Return 6.36% ]-[ Buy Hold Return 6.06% ] 84 �[i�'ii�:�•7 Energy Materials Industrials Con. Discretionary Consumer Staples Health Care Financials Infomation Tech. Telecom. Services Utilities Attachment number 2 \nPage 8! City of Clearwater Equity Sector Attribution Chart Artisan Partners Quarter Ending 12/ 11 % Allocation % Return % Variance � Artisan Partners 0 R Mid Cap G 85 �[iai1�:�•7 Attachment number 2 \nPage 9i City of Clearwater Wedge Capital Mgmt as of 12/31 / 11 Portfolio Performance ("/o) 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 2/28/07 � Wedge Capital Mgmt � R Mid Cap V Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 2/28/07 Wedge Capital Mgmt 13.62 -033 -033 19.40 1.57 R Mid Cap V 1336 -138 -138 18.20 -0.71 Asset Growth ($000) Beginning Market Value 32,037 40,943 40,943 19,238 30,365 Net Contributions & Withdrawals -1 -4,001 -4,001 -4,001 -4,001 Gain/Loss + Income 4,365 -541 -541 21,164 10,037 Ending Market Value 36,401 36,401 36,401 36,401 36,401 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Allstate Corp Financials 431 Energy 7.00 Transdigm Group Inc Industrials 4.24 Materials 9.23 Duke-Weeks Realry Co Financials 416 Industrials 23.64 Sonoco Prods Co Materials 3.93 Consumer Discretionary 10.86 Lincoln Natl Corp In Financials 3.90 Consumer Staples 4.28 Computer Sciences Co Information Technology 3.79 Health Care 1.90 Donnelley R R& Sons Industrials 3.50 Financials 27.61 Brunswick Corp Consumer Discretionary 3.49 Information Technology 8.45 Carlisle Corp Industrials 3.45 Telecom Services 0.00 Dover Corp Industrials 3.27 Utilities 7.03 ��11�:�� 86 Attachment number 2 \nPage 9 City of Clearwater Wedge Capital Mgmt as of 12/31 / 11 � � a� � � N � � 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 -0.2 -0.4 -0.6 -0.8 0.0 Risk/Return Analysis Periods from 2/07 to 12/11 Alpha Beta R-Squared 0.57 0.98 0.97 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio w Wedge Capital Mgmt 1.57 23.40 0.01 0.47 ;. R Mid Cap V -0.71 23.59 -0.09 T 91-Day Treasury Bill 136 0.57 0.00 ��11�:�� 87 30% 25% 20% 15% 10% 5% �% -5% -1�% -15% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 9; City of Clearwater Midcap Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/11 Last Qtr 20.60 15.73 14.69 13.90 8.30 w Wedge Capital Mgmt Net Ret 13.62 Rank 84 � R Mid Cap V Net Ret 13.36 Rank 87 Last Year 12.27 7.12 -1.81 -6.20 -11.29 -0.33 40 -1.38 43 Last 2 Years 19.16 13.31 10.34 8.40 3.24 1 :: 10.93 41 aa Last 3 Years 25.32 19.40 17.54 15.56 7.76 19.40 26 18.20 42 Last 4 Years 3.19 2.34 0.87 -0.50 -5.25 2.60 16 0.41 69 I[�'ii�:�7 6o°io so�io 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 9; City of Clearwater Midcap Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 2011 12.27 �.12 -1.81 -6.20 -11.29 w Wedge Capital Mgmt Net Ret -033 Rank 40 � R Mid Cap V Net Ret -13 8 Rank 43 2010 30.88 25.84 23.30 19.78 14.62 23.30 50 24.76 43 89 2009 57.20 45.34 35.12 30.58 19.07 38.51 35 34.20 50 11: -31.72 -33.94 -36.61 -43.71 -51.14 -34.89 31 -38.45 53 I[�'ii�:�7 zsi zoi �si �oi si oi -s i -�oi Attachment number 2 \nPage 9� City of Clearwater December 31, 2011 Cumulative Performance Comparison Total Returns of Equity Portfolios ]2/]] 9/]] 6/]] 3/]] ]2/]O High 24.09 9.45 ]3.65 ]4.09 A2] ] st Qt ] A.AS 436 A.OS A.55 2.72 Mcdiai2 ]53] ].AO 4.6] 42A -O.A7 3rd Qt ]3.54 039 2.70 226 -2.97 Low A.47 -3.]] -2.65 -].73 -6.SA w Wcdgc Capital Mg*n2t Rcturn ] 9.40 3 3] 9.54 ] 0.00 3.60 Rank 20 34 ]7 ]7 ]9 � R Mid Cap V Rctun2 ]A20 ].9A 635 6.62 ].O] Rank 29 4A 36 36 36 14.0 % 12.0% 1 O.O % 8.0 % 6.0 % 4.0 % 2.0 % O.O % -2.0 % -4.0 % Wedge Capital Mgmt Value Added Analysis - Net of Fee � Quarterly Value Added vs. R Mid Cap V - Cumulat3ve Value Added '°�'° 2 Yr Rolling Avg (A�vivalized) � Attachment number 2 \nPage 9; City of Clearwater Risk Measure Summary Wedge Capital Mgmt Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 2 2 4 4 9 9 9 9 Positive Periods 2 2 8 8 10 10 10 10 Up Market Capture 1.11 1.00 1.03 Down Market Capture 1.04 0.95 0.94 Batting Average 0.75 0.58 0.68 0.68 Worst Quarter � 19.63 � 18.47 � 19.63 � 18.47 �26.40 �27.19 �26.40 �27.19 Best Quarter 13.62 1336 25.65 23.62 25.65 23.62 25.65 23.62 Worst 4 Quarters �0.33 �1.38 �0.63 �2.36 �39.75 �42.51 �39.75 m42.51 Best 4 Quarters �0.33 �1.38 73.15 72.41 73.15 72.41 73.15 72.41 Standard Deviation 27.20 26.86 26.71 26.75 Beta 0.99 0.98 Alpha 0.33 0.57 R-Squared 0.96 0.97 Sharpe Ratio 0.71 0.67 0.00 m0.08 Treynor Ratio 19.42 0.03 Tracking Error 5.60 4.62 Information Ratio 0.18 0.47 I[�'ii�:�7 m 35.0 30.0 � 25.0 � a� w � 20.0 � � a� '�„ 15.0 N � � 10.0 5.0 0.0 14.0 Attachment number 2 \nPage 9i City of Clearwater Return vs Risk Total Returns of Midcap Value Portfolios 3 Years Ending 12/31/11 16.4 18.8 21.2 23.6 26.0 28.4 30.8 33.2 35.6 38.0 w Wedge Capital Mgmt [ R Mid Cap V Median Historical Standard Deviation of Return Annualized Return Value Rank 19.40 26 18.20 42 17.54 92 Standard Deviation Value Rank 27.20 65 26.86 64 26.04 ��11�:�� Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Ten Largest Holdings Allstate Corp Transdigm Group Inc Duke-Weeks Realty Co Sonoco Prods Co Lincoln Natl Corp In Computer Sciences Co Donnelley R R & Sons Brunswick Corp Carlisle Corp Dover Corp Ten Best Performers Carlisle Corp Convergys Corp Solutia lnc Wyndham Worldwide Co Brunswick Corp Murphy Oil Corp Dover Corp Lincoln Natl Corp In Bank Hawaii Corp Energen Corp City of Clearwater Equity Summary Statistics Wedge Capital Mgmt Period Ending 12/11 Market Value 1,515,773 1,490,216 1,461,388 1,381,024 1,371,246 1,330,542 1,230,273 1,228,080 1,213,820 1,149,390 Quarterly Ret 39.54 36.14 34.47 33.29 29.02 26.85 25.33 24.64 23.60 22.61 Portfolio 41 35,216,997 5,368,708 3,295,407 2.71 18.61 14.55 1.19 1.32 62.47 0.52 93 % of Portfolio 4.31 4.24 4.16 3.93 3.90 3.79 3.50 3.49 3.45 3.27 Ten Worst Performers Phh Corp Computer Sciences Co First Niagara Finl G Pg&E Corp Life Technologies Co HCC Ins Hldgs Inc Comtech Telecommunic Bemis Inc Donnelley R R & Sons V F Corp Attachment number 2 \nPage 9 R Mid Cap V 527 7,801,385 3,707,206 2.42 16.60 14.94 1.27 1.37 76.84 -0.45 Quarterly Ret 16.66 17.15 16.47 17.85 24.64 -11.04 3.82 29.02 39.54 25.33 Quarterly Ret -33.46 -11.04 -3.98 -1.49 1.25 2.24 2.77 3.50 3.82 Item'# 5 City of Clearwater Equity Contribution to Return Wedge Capital Mgmt Period Ending 12/11 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Ten Best Contributors Carlisle Corp Brunswick Corp Lincoln Natl Corp In Convergys Corp Dover Corp Wyndham Worldwide Co Transdigm Group Inc Allstate Corp Sonoco Prods Co Duke-Weeks Realty Co Ten Worst Contributors Computer Sciences Co Phh Corp Pg&E Corp First Niagara Finl G Life Technologies Co Comtech Telecommunic HCC Ins Hldgs Inc Bemis Inc Capstead Mtg Corp UGI Corp New Market Value 1,213,820 1,228,080 1,371,246 913,055 1,149,390 836,043 1,490,216 1,515,773 1,381,024 1,461,388 Market Value 1,330,542 211,860 993,402 318,447 669,252 727,005 1,006,500 1,022,720 374,444 355,740 Portfolio 41 35,216,997 5,368,708 3,295,407 2.71 18.61 14.55 1.19 1.32 62.47 0.52 94 % of Portfolio 3.45 3.49 3.90 2.60 3.27 2.38 4.24 4.31 3.93 4.16 % of Portfolio 3.79 0.60 2.83 0.91 1.90 2.07 2.86 2.91 1.07 1.O1 Attachment number 2 \nPage 9� R Mid Cap V 527 7,801,385 3,707,206 2.42 16.60 14.94 1.27 1.37 76.84 -0.45 Quarterly Ret 39.54 29.02 24.64 36.14 25.33 33.29 17.15 16.66 17.85 16.47 Quarterly Ret -11.04 -33.46 -1.49 -3.98 1.25 2.77 2.24 3.50 11.49 Item' #�5 Attachment number 2 \nPage 9! City of Clearwater Equity Sector Attribution Analysis Wedge Capital Mgmt Quarter Ending 12/ 11 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 6.65 6.07 16.87 21.43 �0.30 0.05 �0.26 Materials 8.98 432 12.71 22.93 �0.92 0.44 �0.47 Industrials 21.61 9.99 19.18 16.83 0.51 0.40 0.90 Consumer Discretionary 12.04 10.86 16.19 16.01 0.02 0.03 0.05 Consumer Staples 4.21 7.26 12.99 9.76 0.14 0.11 0.25 Health Care 2.08 6.76 1.25 5.97 �0.10 0.35 0.25 Financials 27.78 30.65 14.00 13.70 0.08 �0.01 0.07 Information Technology 9.03 8.25 4.31 10.87 �0.59 �0.02 �0.61 Telecom. Services 0.00 0.86 �6.03 0.00 0.17 0.17 Utilities 7.61 14.98 6.80 10.38 �0.27 0.22 a0.05 100.00 100.00 13.73 13.42 �1.44 1.74 0.30 Index - R Mid Cap V Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ]*[ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ]*[ Index Sector Return - Index Total Return ] Trading Effect 0.04% [ Actual Return 13.76% ]-[ Buy Hold Return 13.73% ] 95 �[i�'ii�:�•7 Energy Materials Industrials Con. Discretionary Consumer Staples Health Care Financials Infomation Tech. Telecom. Services Utilities Attachment number 2 \nPage 1i City of Clearwater Equity Sector Attribution Chart Wedge Capital Mgmt Quarter Ending 12/ 11 % Allocation % Return % Variance � Wedge Capital Mgmt 0 R Mid Cap V � �[i�'ii�:�•7 Attachment number 2 \nPage 1i City of Clearwater Small Cap Equity Comp as of 12/31/11 Portfolio Performance ("/o) 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 -6.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 � Small Cap Equiry Comp � R2000 Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 8/31/03 Small Cap Equiry Comp 15.86 2.07 2.07 20.77 2.23 712 R2000 15.48 -4.17 -4.17 15.63 0.15 6.26 Asset Growth ($000) Beginning Market Value 37,502 42,571 42,571 47,086 64,401 29,988 Net Contributions & Withdrawals -1 -2 -2 -39,005 -39,005 -39,005 Gain/Loss + Income 5,949 881 881 35,368 18,054 52,466 Ending Market Value 43,450 43,450 43,450 43,450 43,450 43,450 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Lkq Corp Consumer Discretionary 2.43 Energy 313 Ultimate Software Gr Information Technology 214 Materials 2.77 Rollins Inc Industrials 2.08 Industrials 20.01 National Instrs Corp Information Technology 1.94 Consumer Discretionary 14.81 Cepheid Inc Health Care 1.68 Consumer Staples 3.96 Semtech Corp Information Technology 1.44 Health Care 15.72 Mednax Inc Health Care 1.41 Financials 11.76 Chemed Corp New Health Care 136 Information Technology 27.28 United Nat Foods Inc Consumer Staples 131 Telecom Services 0.00 Gentex Corp Consumer Discretionary 131 Utilities 0.56 ��11�:�� Holdings and allocations only include SMA accounts. 97 City of Clearwater Small Cap Equity Comp as of 12/31/11 � � � � � � � � 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 0.0 Risk/Return Analysis Periods from 8/03 to 12/11 Alpha Beta R-Squared 032 0.91 0.96 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 Annualized Standard Deviation% 5 Small Cap Equiry Comp ;. R2000 T 91-Day Treasury Bill Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio 7.12 20.08 6.26 20.91 2.03 0.57 Holdings and allocations only include SMA accounts. 98 0.25 0.13 0.20 0.00 Attachment number 2 \nPage 1i ��11�:�� 30% 25% 20% 15% 10% 5% �% -5% -1�% -15% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1i City of Clearwater Small Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Qtr Year Years Years Years Years Years Years Years 19.44 6.54 15.62 24.50 5.57 5.60 7.44 7.75 8.75 17.09 -0.93 12.87 20.06 4.05 3.25 5.75 6.11 7.88 15.47 -3.05 11.30 17.03 1.80 1.88 4.10 4.72 6.57 13.65 -4.83 9.66 15.52 0.72 0.38 3.14 4.06 5.94 11.22 -11.49 5.08 11.90 -132 -1.16 1.79 2.06 4.46 S Small Cap Equity Comp Net Ret 15.86 2.07 Rank 34 12 � R2000 Net Ret 15.48 -4.17 Rank 49 70 14.87 20.77 12 22 10.25 15.63 65 71 � 1.97 2.23 48 44 0.58 0.15 77 78 4.61 4.98 45 48 2.98 3.20 77 87 6.26 60 ..; I[�'ii�:�7 6o°io so�io 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% Attachment number 2 \nPage 1i City of Clearwater Small Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 2011 2010 2009 2008 2007 2006 2005 2004 High 6.54 36.32 53.35 -22.15 11.39 25.57 14.03 26.61 lst Qt -0.93 29.64 36.35 -29.87 3.44 19.63 10.02 22.75 Median -3.05 26.99 29.15 -33.24 0.65 17.58 8.36 20.68 3rd Qt -4.83 25.10 26.09 -36.09 -2.60 15.75 5.69 18.42 Low -11.49 20.97 19.50 -42.48 -8.40 12.80 2.79 15.47 S Small Cap Equity Comp Net Ret 2.07 29.27 Rank 12 29 � R2000 Net Ret -4.17 26.85 Rank 70 52 33.51 -38.63 31 85 27.19 -33.80 66 59 �� 3.27 17.40 27 52 -1.55 18.35 65 38 7.21 15.69 71 91 4.56 18.32 86 78 I[�'ii�:�7 Attachment number 2 \nPage 1i City of Clearwater Risk Measure Summary Small Cap Equity Comp Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 2 2 4 4 8 9 11 12 Positive Periods 2 2 8 8 12 11 22 21 Up Market Capture 1.06 0.99 1.03 0.96 Down Market Capture 0.83 0.79 0.94 0.90 Batting Average 1.00 0.83 0.75 0.64 Worst Quarter � 18.74 �21.86 � 18.74 �21.86 �25.65 �26.12 �25.65 �26.12 Best Quarter 15.86 15.48 20.74 20.68 20.74 20.68 20.74 20.68 Worst 4 Quarters 2.07 �4.17 2.07 m4.17 �3�.63 �37.50 �3�.63 m37.50 Best 4 Quarters 2.07 �4.17 57.55 62.77 57.55 62.77 57.55 62.77 Standard Deviation 24.36 27.86 24.83 26.00 20.56 22.05 Beta 0.87 0.94 0.91 Alpha 1.51 0.47 0.32 R-Squared 0.98 0.96 0.96 Sharpe Ratio 0.85 0.56 0.03 �0.05 0.27 0.21 Treynor Ratio 23.78 0.80 6.14 Tracking Error 5.26 5.40 4.71 Information Ratio 0.67 0.30 0.13 I[�'ii�:�7 � 25.9 24.1 223 � 20.5 � a� 0 18.8 � � 17.0 � N 15.2 � � 13.4 11.6 9.8 8.0 21.0 Attachment number 2 \nPage 1i City of Clearwater Return vs Risk Total Returns of Small Neutral Portfolios 3 Years Ending 12/31/11 6.0 5.0 � 4.0 � � 3.0 w 0 � � 2.0 � � N 1.0 � �0.0 -1.0 -2.0 19.0 223 23.6 24.9 S Small Cap Equiry Comp i R2000 Median 26.2 27.5 28.8 301 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 20.77 22 15.63 71 17.03 5 Years Ending 12/31/11 31.4 32.7 34.0 Standard Deviation Value Rank 24.36 17 27.86 58 27.43 20.4 21.8 S Small Cap Equiry Comp [ R2000 Median 23.2 24.6 26.0 27.4 28.8 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 2.23 44 0.15 78 1.88 � 30.2 31.6 33.0 Standard Deviation Value Rank 24.83 30 26.00 51 26.00 ��11�:�� Attachment number 2 \nPage 1i City of Clearwater Riverbridge Partners as of 12/31 / 11 Portfolio Performance ("/o) 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 -4.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 � Riverbridge Partners � R2000G Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 9/30/10 Riverbridge Partners 13.13 4.27 4.27 16.74 R2000G 14.99 -2.92 -2.92 10.81 Asset Growth ($000) Beginning Market Value 18,102 19,642 19,642 16,876 Net Contributions & Withdrawals 0 -1 -1 -1 Gain/Loss + Income 2,377 838 838 3,603 Ending Market Value 20,478 20,478 20,478 20,478 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Ultimate Software Gr Information Technology 4.53 Energy 0.00 Rollins Inc Industrials 4.40 Materials 0.00 Cepheid Inc Health Care 3.55 Industrials 17.99 National Instrs Corp Information Technology 3.48 Consumer Discretionary 10.78 Lkq Corp Consumer Discretionary 332 Consumer Staples 4.45 Semtech Corp Information Technology 3.04 Health Care 25.52 Mednax Inc Health Care 2.99 Financials 1.50 Chemed Corp New Health Care 2.88 Information Technology 39.76 United Nat Foods Inc Consumer Staples 2.77 Telecom Services 0.00 Gentex Corp Consumer Discretionary 2.76 Utilities 0.00 ��11�:�� 103 � � � � N � � � City of Clearwater Riverbridge Partners as of 12/31 / 11 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 -2.0 Risk/Return Analysis (Number of returns < 12) Periods from 9/10 to 12/11 Alpha Beta R-Squared N/A N/A N/A 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 R Riverbridge Partners ;. R2000G T 91-Day Treasury Bill Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio 16J4 17.66 0.94 10.81 23.08 0.46 0.11 0.03 0.00 104 Attachment number 2 \nPage 1i ��11�:�� 2o°io Is�io 1 o�io s�io o�io -s�io -lo�io -IS�io -ZO�io High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1i City of Clearwater Small Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/11 Last Qtr 17.86 15.33 13.82 12.42 9.98 R Riverbridge Partners Return 13.13 Rank 65 � R2000G Return 14.99 Rank 32 Last 2 Qtrs -3.95 -731 -9.51 -11.65 -16.66 -4.85 14 -10.60 63 105 Last 3 Qtrs -2.30 -6.90 -9.90 -11.98 -17.47 -4.52 11 -11.13 64 Last 4 Qtrs 7.94 2.26 -l.11 -3.87 -8.91 4.27 14 -2.92 62 I[�'ii�:�7 lo°io s�io 6�io 4% 2% 0% -2% -4% -6% -8% -10% Attachment number 2 \nPage 1 City of Clearwater Small Growth Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 2011 High 7.94 1 st Qt 2.26 Median -1.11 3rd Qt -3.87 Low -8.91 R Riverbridge Partners Return 4.27 Rank 14 � R2000G Return -2.92 Rank 62 � I[�'ii�:�7 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Ten Largest Holdings Ultimate Software Gr Rollins Inc Cepheid Inc National Instrs Corp Lkq Corp Semtech Corp Mednax Inc Chemed Corp New United Nat Foods Inc Gentex Corp Ten Best Performers Dealertrack Hldgs In Stratasys Inc Sps Comm Inc Ebix Com Inc Faro Technologies In Ultimate Software Gr Cabot Microelectroni Concur Technologies Constant Contact Inc Cass Information Sys City of Clearwater Equity Summary Statistics Riverbridge Partners Period Ending 12/11 Market Value 903,214 878,068 708,640 693,825 662,963 606,601 597,323 574,320 552,938 551,706 Quarterly Ret 73.96 64.02 59.30 50.70 45.80 39.38 37.39 36.46 34.24 29.54 Portfolio 52 19,960,289 1,666,594 974,908 0.41 29.07 29.05 1.OS 3.52 12.46 6.01 107 % of Portfolio 4.53 4.40 3.55 3.48 3.32 3.04 2.99 2.88 2.77 2.76 Ten Worst Performers Echelon Corp Quality Sys Inc Athenahealth Inc Neogen Corp Bio-Reference Labs I Cepheid Inc Chemed Corp New Sciquest Inc New Pegasystems Inc Grand Canyon Ed Inc Attachment number 2 \nPage 1 R2000G 1,162 1,391,346 533,139 0.72 30.34 14.60 1.43 3.08 49.50 8.44 Quarterly Ret 39.38 19.13 -1138 13.93 24.50 17.63 14.96 -6.56 8.02 23.61 Quarterly Ret -30.53 -23.35 -17.51 -11.75 -11.62 -1138 -6.56 -4.48 -3.85 Item'# 5 City of Clearwater Equity Contribution to Return Riverbridge Partners Period Ending 12/11 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Ten Best Contributors Ultimate Software Gr Dealertrack Hldgs In Sps Comm Inc Ebix Com Inc Rollins Inc Cabot Microelectroni Lkq Corp Faro Technologies In Stratasys Inc Concur Technologies Ten Worst Contributors Cepheid Inc Quality Sys Inc Athenahealth Inc Neogen Corp Echelon Corp Chemed Corp New Bio-Reference Labs I Pegasystems Inc Sciquest Inc New Grand Canyon Ed Inc Market Value 903,214 386,956 333,380 375,855 878,068 445,615 662,963 339,940 237,502 373,357 Market Value 708,640 266,698 344,872 389,005 135,805 574,320 308,577 259,043 189,106 331,473 Portfolio 52 19,960,289 1,666,594 974,908 0.41 29.07 29.05 1.OS 3.52 12.46 6.01 108 % of Portfolio 4.53 1.94 1.67 1.88 4.40 2.23 3.32 1.70 1.19 1.87 % of Portfolio 3.55 1.34 1.73 1.95 0.68 2.88 1.55 1.30 0.95 1.66 Attachment number 2 \nPage 1 Russell 2000 Growth 1,162 1,391,346 533,139 0.72 30.34 14.60 1.43 3.08 49.50 8.44 Quarterly Ret 3938 73.96 5930 50.70 19.13 3739 24.50 45.80 64.02 36.46 Quarterly Ret -1138 -23.35 -17.51 -11.75 -30.53 -6.56 -11.62 -3.85 -4.48 Item'# 5 Attachment number 2 \nPage 1 City of Clearwater Equity Sector Attribution Analysis Riverbridge Partners Quarter Ending 12/ 11 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 0.00 7.72 28.15 0.00 � 1.02 � 1.02 Materials 0.00 4.04 15.22 0.00 �0.01 �0.01 Industrials 14.89 15.80 16.87 20.63 �0.56 �0.05 �0.61 Consumer Discretionary 10.23 14.73 18.53 11.85 0.68 0.14 0.82 Consumer Staples 4.69 4.55 6.69 6.88 �0.01 �0.01 �0.02 Health Care 30.50 20.52 �2.25 11.37 �4.16 �0.36 �4.52 Financials 3.80 8.00 23.30 12.24 0.42 0.12 0.54 Information Technology 35.90 2332 23.59 14.82 3.15 �0.02 3.13 Telecom. Services 0.00 1.23 7.69 0.00 0.09 0.09 Utilities 0.00 0.09 11.87 0.00 0.00 0.00 100.00 100.00 13.39 14.98 �0.47 �1.12 a1.59 Index - R2000G Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ]*[ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ]*[ Index Sector Return - Index Total Return ] Trading Effect 0.04% [ Actual Return 13.43% ]-[ Buy Hold Return 13.39% ] � �[i�'ii�:�•7 Energy Materials Industrials Con. Discretionary Consumer Staples Health Care Financials Infomation Tech. Telecom. Services Utilities Attachment number 2 \nPage 1 City of Clearwater Equity Sector Attribution Chart Riverbridge Partners Quarter Ending 12/ 11 % Allocation % Return % Variance � Riverbridge Partners 0 R2000G 110 �[iai1�:�•7 Attachment number 2 \nPage 1 City of Clearwater Atlanta Capital Mgmt as of 12/31/11 Portfolio Performance ("/o) 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 -6.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 � Atlanta Capital Mgmt � R2000V Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 8/31/03 Atlanta Capital Mgmt 16.42 10.20 10.20 20.76 8.66 10.98 R2000V 15.97 -5.50 -5.50 12.36 -1.87 6.22 Asset Growth ($000) Beginning Market Value 10,899 11,514 11,514 14,689 32,049 14,990 Net Contributions & Withdrawals 0 -1 -1 -10,001 -10,001 -10,001 Gain/Loss+Income 1,789 1,175 1,175 8,000 -9,360 7,699 Ending Market Value 12,688 12,688 12,688 12,688 12,688 12,688 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Kirby Expl Co. Industrials 3.56 Energy 2.76 Morningstar Inc Consumer Discretionary 3.44 Materials 3.64 Lkq Corp Consumer Discretionary 3.01 Industrials 2736 Henry Jack & Assoc I Information Technology 2.96 Consumer Discretionary 20.96 Blackbaud Inc Information Technology 2.81 Consumer Staples 3.62 Sally Beauty HIdgs I Consumer Discretionary 2.79 Health Care 8.57 Bio Rad Labs Inc Health Care 2.77 Financials 13.75 Dril-Quip Inc Energy 2.76 Information Technology 1934 Aptargroup Inc Materials 238 Telecom Services 0.00 Fair Isaac Corp Information Technology 231 Utilities 0.00 ��11�:�� �Qt City of Clearwater Atlanta Capital Mgmt as of 12/31/11 � � a� � N � � � 12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Risk/Return Analysis Periods from 8/03 to 12/11 Alpha Beta R-Squared 138 0.72 0.92 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio t Atlanta Capital Mgmt 10.98 17.77 ;. R2000V 6.22 20.92 T 91-Day Treasury Bill 2.03 0.57 112 0.50 0.44 0.20 0.00 Attachment number 2 \nPage 1 ��11�:�� 25% 20% 15% 10% 5% �% -5% -l�% Attachment number 2 \nPage 1 City of Clearwater Small Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Qtr Year Years Years Years Years Years Years Years High 19.25 1.95 14.56 21.20 6.16 4.93 7.78 8.59 10.66 1 st Qt 17.88 -0.63 13.05 19.04 4.77 3.21 5.68 6.26 8.49 Median 16.19 -4.03 11.13 17.38 2.85 2.21 4.82 5.40 7.48 3rd Qt 15.13 -6.21 9.21 15.77 0.94 0.03 3.67 4.12 6.25 Low 13.81 -8.96 7.66 13.12 0.42 -1.82 1.75 2.62 4.92 t Atlanta Capital Mgmt Net Ret 16.42 10.20 17.83 20.76 9.11 8.66 9.89 9.36 10.66 Rank 42 1 1 8 1 1 1 1 6 � R2000V Net Ret 15.97 -5.50 8.47 12.36 0.21 -1.87 1.96 2.34 4.64 Rank 55 68 85 99 96 97 89 100 99 I[�'ii�:�7 113 6o°io so�io 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% Attachment number 2 \nPage 1 City of Clearwater Small Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 2011 2010 2009 2008 2007 2006 2005 2004 High 1.95 33.58 55.19 -23.17 5.01 25.08 13.63 27.20 lst Qt -0.63 30.90 36.04 -28.21 0.79 21.53 10.31 25.39 Median -4.03 27.62 32.28 -30.75 -2.59 19.90 8.22 21.40 3rd Qt -6.21 24.82 25.37 -33.26 -7.82 16.57 5.85 18.37 Low -8.96 21.40 20.58 -38.96 -1130 13.06 2.16 12.52 t Atlanta Capital Mgmt Net Ret 10.20 Rank 1 � R2000V Net Ret -5.50 Rank 68 25.98 26.83 65 62 24.51 20.57 79 96 -19.52 6.91 1 3 -28.92 -9.77 27 83 114 16.22 6.23 78 70 23.48 4.70 8 83 20.24 59 22.25 43 I[�'ii�:�7 zsi zoi �si �oi si oi -s i -�oi Attachment number 2 \nPage 1 City of Clearwater December 31, 2011 Cumulative Performance Comparison Total Returns of Equity Portfolios ]2/]] 9/]] 6/]] 3/]] ]2/]O High 24.09 9.45 ]3.65 ]4.09 A2] ] st Qt ] A.AS 436 A.OS A.55 2.72 Mcdiai2 ]53] ].AO 4.6] 42A -O.A7 3rd Qt ]3.54 039 2.70 226 -2.97 Low A.47 -3.]] -2.65 -].73 -6.SA t Atlanta Capital Mg*n2t Rcturn 20.76 A.OS ]S.A] ]3.9A A.75 Rank ]3 7 2 5 4 � R2000V Rctun2 12.3C -2.79 7.OA C.7C 2.19 Rank A2 94 3] 35 29 ��,.�,� ��,.�,� s�,.�,� 40.0 % 30.0 % 20.0 % 1 O.O % O.O % -10.0% Atlanta Capital Mgmt Value Added Analysis - Net of Fee 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 � Quarterly Value Added vs. R2000V - Cumulat3ve Value Added '°�'° 2 Yr Rolling Avg (A�vivalized) 115 Attachment number 2 \nPage 1; City of Clearwater Risk Measure Summary Atlanta Capital Mgmt Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 2 3 4 7 9 10 11 Positive Periods 3 2 9 8 13 11 23 22 Up Market Capture 1.16 0.94 0.96 0.88 Down Market Capture 0.58 0.64 0.58 0.59 Batting Average 1.00 0.75 0.80 0.64 Worst Quarter � 15.76 �21.47 � 15.76 �21.47 � 16.60 �24.�9 � 16.60 �24.�9 Best Quarter 16.42 15.97 18.00 22.70 18.00 22.70 18.00 22.70 Worst 4 Quarters 10.20 �5.50 8.57 m6.00 �24.55 �38.89 �24.55 m38.89 Best 4 Quarters 10.20 �5.50 52.53 65.05 52.53 65.05 52.53 65.05 Standard Deviation 22.64 29.28 20.44 26.53 16.81 22.38 Beta 0.76 0.75 0.72 Alpha 2.39 2.21 1.38 R-Squared 0.96 0.95 0.92 Sharpe Ratio 0.91 0.42 0.35 �0.13 0.57 0.20 Treynor Ratio 27.06 9.57 13.14 Tracking Error 8.40 8.14 7.81 Information Ratio 0.66 1.08 0.44 I[�'ii�:�7 � 25.9 24.1 223 � 20.5 � a� 0 18.8 � � 17.0 � N 15.2 � � 13.4 11.6 9.8 8.0 18.0 Attachment number 2 \nPage 1; City of Clearwater Return vs Risk Total Returns of Small Value Portfolios 3 Years Ending 12/31/11 12.0 10.2 8.4 � 6.6 � a� 0 4.8 � � 3.0 � N 1.2 � � -0.5 -23 -4.2 -6.0 16.0 20.2 22.4 i Atlanta Capital Mgmt i R2000V Median 24.6 26.8 29.0 31.2 33.4 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 20J6 8 12.36 99 17.38 5 Years Ending 12/31/11 35.6 37.8 40.0 Standard Deviation Value Rank 22.64 4 29.28 57 28.84 18.2 20.4 i Atlanta Capital Mgmt i R2000V Median 22.6 24.8 27.0 29.2 31.4 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 8.66 1 -1.87 97 2.21 117 33.6 35.8 38.0 Standard Deviation Value Rank 20.44 1 26.53 51 26J7 ��11�:�� Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Ten Largest Holdings Kirby Expl Co. Morningstar Inc Lkq Corp Henry Jack & Assoc I Blackbaud Inc Sally Beauty Hldgs I Bio Rad Labs Inc Dril-Quip Inc Aptargroup Inc Fair Isaac Corp Ten Best Performers Fair Isaac Corp Acuity Brands Inc Wright Express Corp Umpqua Hldgs Corp Carlisle Corp Simpson Manufacturin Moog Inc ' a' Hibbett Sports Inc Aaon Inc Raven Inds Inc City of Clearwater Equity Summary Statistics Atlanta Capital Mgmt Period Ending 12/11 Market Value 430,594 416,745 363,968 358,283 340,433 337,235 335,180 334,366 287,978 279,552 Quarterly Ret 64.27 47.48 42.69 41.76 39.54 35.65 34.67 33.31 30.88 28.81 Portfolio 62 12,111,637 1,966,553 1,551,275 1.00 20.36 20.26 1.08 2.92 18.46 4.74 118 % of Portfolio 3.56 3.44 3.01 2.96 2.81 2.79 2.77 2.76 2.38 2.31 Ten Worst Performers Owens & Minor Inc Ne Columbia Sportswear Techne Corp Hittite Microwave Co HCC Ins Hldgs Inc II VI Inc Landauer Inc Morningstar Inc Iberiabank Corp Aaron Rents Inc Attachment number 2 \nPage 1; I' 111 I 1,354 1,082,047 406,698 2.19 22.74 12.98 1.46 1.16 54.75 -0.29 Quarterly Ret 25.08 5.42 24.50 16.34 24.95 27.29 5.81 22.09 17.32 64.27 Quarterly Ret -1.72 0.75 0.77 1.40 2.24 4.91 5.06 5.42 5.47 Item�# 5 City of Clearwater Equity Contribution to Return Atlanta Capital Mgmt Period Ending 12/11 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Ten Best Contributors Fair Isaac Corp Acuity Brands Inc Kirby Expl Co. Moog Inc ' a' Sally Beauty Hldgs I Lkq Corp Umpqua Hldgs Corp Blackbaud Inc Dril-Quip Inc Carlisle Corp Ten Worst Contributors Owens & Minor Inc Ne Columbia Sportswear Techne Corp Hittite Microwave Co HCC Ins Hldgs Inc Landauer Inc Young Innovations In Iberiabank Corp II VI Inc Aaron Rents Inc Market Value 279,552 234,260 430,594 275,441 337,235 363,968 208,648 340,433 334,366 177,200 Market Value 152,845 146,772 170,650 119,500 159,225 102,485 81,483 114,869 155,142 154,611 Portfolio 62 12,111,637 1,966,553 1,551,275 1.00 20.36 20.26 1.08 2.92 18.46 4.74 119 % of Portfolio 2.31 1.94 3.56 2.28 2.79 3.01 1.72 2.81 2.76 1.46 % of Portfolio 1.26 1.21 1.41 0.99 1.32 0.85 0.67 0.95 1.28 1.28 Attachment number 2 \nPage 1; I' 111 I 1,354 1,082,047 406,698 2.19 22.74 12.98 1.46 1.16 54.75 -0.29 Quarterly Ret 64.27 47.48 25.08 34.67 27.29 24.50 41.76 24.95 22.09 39.54 Quarterly Ret -1.72 0.75 0.77 1.40 2.24 5.06 7.70 5.47 4.91 Item�# 5 Attachment number 2 \nPage 1; City of Clearwater Equity Sector Attribution Analysis Atlanta Capital Mgmt Quarter Ending 12/ 11 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 2.63 4.76 22.09 13.93 0.21 0.04 0.26 Materials 3.71 4.98 14.36 16.64 �0.08 �0.01 �0.09 Industrials 25.70 1435 24.01 20.28 0.96 0.49 1.45 Consumer Discretionary 21.18 11.41 16.30 18.01 �0.36 0.20 �0.16 Consumer Staples 6.20 3.11 � 15.86 12.83 � L78 �0.10 � L87 Health Care 9.96 538 7.88 14.22 �0.63 �0.08 a0.71 Financials 12.71 36.24 18.99 16.23 0.35 �0.06 0.29 Information Technology 17.93 11.12 22.94 14.15 1.58 �0.12 1.45 Telecom. Services 0.00 0.72 9.22 0.00 0.05 0.05 Utilities 0.00 7.93 10.36 0.00 0.44 0.44 100.00 100.00 17.06 15.96 0.24 0.85 1.10 Index - R2000V Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ]*[ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ]*[ Index Sector Return - Index Total Return ] Trading Effect 0.20% [ Actual Return 17.26% ]-[ Buy Hold Return 17.06% ] 120 �[i�'ii�:�•7 Energy Materials Industrials Con. Discretionary Consumer Staples Health Care Financials Infomation Tech. Telecom. Services Utilities Attachment number 2 \nPage 1; City of Clearwater Equity Sector Attribution Chart Atlanta Capital Mgmt Quarter Ending 12/ 11 % Allocation % Return % Variance � Atlanta Capital Mgmt 0 R2000V 121 �[i�'ii�:�•7 Attachment number 2 \nPage 1; City of Clearwater Systematic Financial Mgt as of 12/31 / 11 Portfolio Performance ("/o) 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 -10.0 -15.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 � Systematic Financial Mgt � R2000V Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year S/31/03 Systematic Financial Mgt 20.97 -9.91 -9.91 1833 -0.26 5.70 R2000V 15.97 -5.50 -5.50 12.36 -1.87 6.22 Asset Growth ($000) Beginning Market Value 8,501 11,416 11,416 10,362 32,360 15,001 Net Contributions & Withdrawals 0 -1 -1 -6,001 -6,001 -6,001 Gain/Loss+Income 1,783 -1,131 -1,131 5,922 -16,076 1,283 Ending Market Value 10,284 10,284 10,284 10,284 10,284 10,284 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Cbl & Assoc Pptys In Financials 3.63 Energy 9.72 Dupont Fabros Techno Financials 3.58 Materials 718 Pier I Imports Inc Consumer Discretionary 332 Industrials 15.21 Cno Finl Group Inc Financials 235 Consumer Discretionary 1538 Hain Celestial Group Consumer Staples 215 Consumer Staples 338 Polyone Corp Materials 2.06 Health Care 5.00 Webster Finl Corp Co Financials 1.93 Financials 29.57 Waddell & Reed Finl Financials 1.90 Information Technology 12.24 Dana Holding Corp Consumer Discretionary 1.81 Telecom Services 0.00 Triumph Group Inc Ne Industrials 1.64 Utilities 232 ��11�:�� 122 City of Clearwater Systematic Financial Mgt as of 12/31 / 11 � � � � N � � � 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 0.0 Risk/Return Analysis Periods from 8/03 to 12/11 Alpha Beta R-Squared 0.04 1.04 0.86 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio s Systematic Financial Mgt 5.70 22.75 ;. R2000V 6.22 20.92 T 91-Day Treasury Bill 2.03 0.57 123 0.16 -0.01 0.20 0.00 Attachment number 2 \nPage 1; ��11�:�� 25% 20% 15% 10% 5% �% -5% -1�% -15% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1; City of Clearwater Small Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Qtr Year Years Years Years Years Years Years Years 19.25 1.95 14.56 21.20 6.16 4.93 7.78 8.59 10.66 17.88 -0.63 13.05 19.04 4.77 3.21 5.68 6.26 8.49 16.19 -4.03 11.13 17.38 2.85 2.21 4.82 5.40 7.48 15.13 -6.21 9.21 15.77 0.94 0.03 3.67 4.12 6.25 13.81 -8.96 7.66 13.12 0.42 -1.82 1.75 2.62 4.92 s Systematic Financial Mgt Net Ret 20.97 -9.91 Rank 1 96 � R2000V Net Ret 15.97 -5.50 Rank 55 68 10.49 18.33 57 30 8.47 12.36 85 99 -0.44 -0.26 100 78 0.21 -1.87 96 97 124 2.66 3.45 87 85 1.96 2.34 89 100 4.41 100 . �. I[�'ii�:�7 6o°io so�io 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% Attachment number 2 \nPage 1; City of Clearwater Small Value Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December 2011 2010 2009 2008 2007 2006 2005 2004 High 1.95 33.58 55.19 -23.17 5.01 25.08 13.63 27.20 lst Qt -0.63 30.90 36.04 -28.21 0.79 21.53 10.31 25.39 Median -4.03 27.62 32.28 -30.75 -2.59 19.90 8.22 21.40 3rd Qt -6.21 24.82 25.37 -33.26 -7.82 16.57 5.85 18.37 Low -8.96 21.40 20.58 -38.96 -1130 13.06 2.16 12.52 s Systematic Financial Mgt Net Ret -9.91 35.50 Rank 96 1 � R2000V Net Ret -5.50 24.51 Rank 68 79 35.72 -40.71 31 97 20.57 -28.92 96 27 125 0.49 18.61 30 62 -9.77 23.48 83 8 8.27 11.42 47 100 4.70 22.25 83 43 I[�'ii�:�7 zsi zoi �si �oi si oi -s i -�oi Attachment number 2 \nPage 1; City of Clearwater December 31, 2011 Cumulative Performance Comparison Total Returns of Equity Portfolios ]2/]] 9/]] 6/]] 3/]] ]2/]O High 24.09 9.45 ]3.65 ]4.09 A2] ] st Qt ] A.AS 436 A.OS A.55 2.72 Mcdiai2 ]53] ].AO 4.6] 42A -O.A7 3rd Qt ]3.54 039 2.70 226 -2.97 Low A.47 -3.]] -2.65 -].73 -6.SA s Systcn2atic Financial Mgt Rctun2 ]A33 O.A4 6.74 ]0.72 2.93 Rank 2A C9 34 1C 24 � R2000V Rctun2 12.3C -2.79 7.OA C.7C 2.19 Rank A2 94 3] 35 29 z�,.�, � � s.�,� � �,.�, � s.�,� �,.�,� -s.�, � -� �,.�,� -� s.�,� -z�,.�,� Systematic Financial Mgt Value Added Analysis - Net of Fee 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 � Quarterly Value Added vs. R2000V - Cumulat3ve Value Added '°�'° 2 Yr Rolling Avg (A�vivalized) 126 Attachment number 2 \nPage 1; City of Clearwater Risk Measure Summary Systematic Financial Mgt Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 2 2 4 4 9 9 13 11 Positive Periods 2 2 8 8 11 11 20 22 Up Market Capture 1.28 1.24 1.07 0.97 Down Market Capture 1.31 1.02 0.99 0.99 Batting Average 0.50 0.75 0.65 0.55 Worst Quarter �27.29 �21.47 �27.29 �21.47 �27.29 �24.�9 �27.29 �24.�9 Best Quarter 20.97 15.97 25.37 22.70 25.37 22.70 25.37 22.70 Worst 4 Quarters �9.91 �5.50 �1L58 m6.00 �40.�8 �38.89 �40.8� m38.89 Best 4 Quarters �9.91 �5.50 74.73 65.05 74.73 65.05 74.73 65.05 Standard Deviation 32.43 29.28 30.35 26.53 25.13 22.38 Beta 1.09 1.06 1.04 Alpha 1.23 0.67 0.04 R-Squared 0.96 0.86 0.86 Sharpe Ratio 0.56 0.42 �0.06 �0.13 0.17 0.20 Treynor Ratio 16.74 � 1.64 4.00 Tracking Error 6.98 11.67 9.58 Information Ratio 0.89 0.17 �0.01 I[�'ii�:�7 127 25.9 24.1 223 � 20.5 � a� 0 18.8 � � 17.0 � N 15.2 � � 13.4 11.6 9.8 8.0 18.0 Attachment number 2 \nPage 1; City of Clearwater Return vs Risk Total Returns of Small Value Portfolios 3 Years Ending 12/31/11 7.0 6.1 5.2 � 43 � a� 0 3.4 � � 2.5 � N 1.5 � � 0.6 -0.2 -1.1 -2.0 16.0 20.2 22.4 s Systematic Financial Mgt i R2000V Median 24.6 26.8 29.0 31.2 33.4 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 1833 30 12.36 99 17.38 5 Years Ending 12/31/11 35.6 37.8 40.0 Standard Deviation Value Rank 32.43 84 29.28 57 28.84 18.2 20.4 s Systematic Financial Mgt i R2000V Median 22.6 24.8 27.0 29.2 31.4 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank -0.26 78 -1.87 97 2.21 128 33.6 35.8 38.0 Standard Deviation Value Rank 3035 78 26.53 51 26J7 ��11�:�� Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Ten Largest Holdings Cbl & Assoc Pptys In Dupont Fabros Techno Pier I Imports Inc Cno Finl Group Inc Hain Celestial Group Polyone Corp Webster Finl Corp Co Waddell & Reed Finl Dana Holding Corp Triumph Group Inc Ne Ten Best Performers FSI Int Inc Kodiak Oil & Gas Cor United Rentals Inc Ethan Allen Interior Wabash Natl Corp Fair Isaac Corp Newpark Res Inc Bbcn Bancorp Inc Arctic Cat Inc Hercules Offshore In City of Clearwater Equity Summary Statistics Systematic Financial Mgt Period Ending 12/11 Market Value 368,950 363,300 336,827 239,149 218,127 209,055 195,744 193,206 183,465 166,583 Quarterly Ret 93.65 82.34 75.48 75.07 64.36 64.27 55.99 55.68 55.62 52.05 Portfolio 104 10,172,449 1,524,393 1,283,558 1.16 15.62 14.20 1.69 1.52 51.07 -2.37 129 % of Portfolio 3.63 3.58 3.32 2.35 2.15 2.06 1.93 1.90 1.81 1.64 Ten Worst Performers Silicon Image Inc Veeco Instrs Inc Del U S Airways Group In Finish Line Inc Express Inc Mastec Inc Waddell & Reed Finl Home Pptys N Y Inc Orbotech Ltd Dillards Inc Attachment number 2 \nPage 1; I' 111 I 1,354 1,082,047 406,698 2.19 22.74 12.98 1.46 1.16 54.75 -0.29 Quarterly Ret 40.07 24.37 42.43 16.64 20.00 8.22 33.61 0.03 15.71 20.01 Quarterly Ret -19.93 -14.75 -7.82 -3.28 -1.73 -136 0.03 2.56 3.10 Item'# 5 City of Clearwater Equity Contribution to Return Systematic Financial Mgt Period Ending 12/11 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Ten Best Contributors Cbl & Assoc Pptys In Pier I Imports Inc Kodiak Oil & Gas Cor Dupont Fabros Techno Hercules Offshore In Wabash Natl Corp Ryder Sys Inc Webster Finl Corp Co Universal Stainless United Rentals Inc Ten Worst Contributors Silicon Image Inc U S Airways Group In Veeco Instrs Inc Del Finish Line Inc Express Inc Mastec Inc Waddell & Reed Finl Orbotech Ltd Home Pptys N Y Inc Dillards Inc Market Value 368,950 336,827 114,950 363,300 146,520 114,464 159,420 195,744 138,232 82,740 Market Value 61,100 119,145 37,440 138,852 69,790 85,113 193,206 54,890 69,084 65,076 Portfolio 104 10,172,449 1,524,393 1,283,558 1.16 15.62 14.20 1.69 1.52 51.07 -2.37 130 % of Portfolio 3.63 3.32 1.13 3.58 1.44 1.13 1.57 1.93 1.36 0.81 % of Portfolio 0.60 1.17 0.37 1.37 0.69 0.84 1.90 0.54 0.68 0.64 Attachment number 2 \nPage 1; I' 111 I 1,354 1,082,047 406,698 2.19 22.74 12.98 1.46 1.16 54.75 -0.29 Quarterly Ret 40.07 42.43 82.34 24.37 52.05 6436 42.47 33.61 46.97 75.48 Quarterly Ret -19.93 -7.82 -14.75 -3.28 -1.73 -136 0.03 3.10 2.56 Item'# 5 Attachment number 2 \nPage 1; City of Clearwater Equity Sector Attribution Analysis Systematic Financial Mgt Quarter Ending 12/ 11 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 8.13 4.76 26.82 13.93 1.05 �0.07 0.98 Materials 5.27 4.98 21.54 16.64 0.26 0.00 0.26 Industrials 15.83 1435 23.23 20.28 0.47 0.06 0.53 Consumer Discretionary 14.86 11.41 16.40 18.01 �0.24 0.07 �0.17 Consumer Staples 4.73 3.11 24.10 12.83 0.53 �0.05 0.48 Health Care 6.34 538 14.97 14.22 0.05 �0.02 0.03 Financials 29.43 36.24 23.16 16.23 2.04 �0.02 2.02 Information Technology 13.10 11.12 15.72 14.15 0.21 �0.04 0.17 Telecom. Services 0.34 0.72 �5.77 9.22 �0.05 0.03 a0.03 Utilities 1.97 7.93 14.30 10.36 0.08 0.33 0.41 100.00 100.00 20.66 15.96 4.38 0.31 4.69 Index - R2000V Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ]*[ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ]*[ Index Sector Return - Index Total Return ] Trading Effect 0.78% [ Actual Return 21.44% ]-[ Buy Hold Return 20.66% ] 131 �[i�'ii�:�•7 Energy Materials Industrials Con. Discretionary Consumer Staples Health Care Financials Infomation Tech. Telecom. Services Utilities Attachment number 2 \nPage 1; City of Clearwater Equity Sector Attribution Chart Systematic Financial Mgt Quarter Ending 12/ 11 % Allocation % Return % Variance � Systematic Financial Mgt 0 R2000V 132 �[iai1�:�•7 Attachment number 2 \nPage 1; City of Clearwater International EQ Comp as of 12/31/11 Portfolio Performance ("/o) 20.0 15.0 10.0 5.0 0.0 -5.0 -10.0 -15.0 -20.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 5/31/Ol � International EQ Comp � MSCI EAFE Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 5/31/Ol International EQ Comp 636 -15.04 -15.04 16.67 -1.70 5.92 4.58 MSCI EAFE 338 -11.73 -11.73 816 -4.26 512 3.61 Asset Growth ($000) Beginning Market Value 96,529 120,850 120,850 51,823 67,126 36,401 20,000 Net Contributions & Withdrawals -9,512 -9,518 -9,518 -9,682 -9,682 -9,682 -9,682 Gain/Loss + Income 5,532 -18,782 -18,782 50,408 35,105 65,830 82,231 Ending Market Value 92,549 92,549 92,549 92,549 92,549 92,549 92,549 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Bhp Billiton Ltd Materials 4.04 Energy 23.41 Core Laboratories N Energy 3.86 Materials 19.03 Rio Tinto Plc Materials 2.68 Industrials 1234 Arm Hldgs Plc Information Technology 2.56 Consumer Discretionary 3.23 Potash Corp Sask Inc Materials 238 Consumer Staples 8.85 Novartis A G Health Care 2.26 Health Care 8.61 Shire Health Care 2.21 Financials 1711 Agrium Inc Materials 2.20 Information Technology 516 Schlumberger Ltd Energy 219 Telecom Services 2.26 Nestle S A Consumer Staples 214 Utilities 0.00 ��11�:�� Holdings and allocations only include SMA accounts. 133 City of Clearwater International EQ Comp as of 12/31/11 � � a� � � N � � � 4.8 4.6 4.4 4.2 4.0 3.8 3.6 3.4 3.2 3.0 2.8 2.6 2.4 2.2 2.0 0.0 Risk/Return Analysis Periods from 5/Ol to 12/11 Alpha Beta R-Squared 0.26 1.03 0.95 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Annualized Standard Deviation% I International EQ Comp ;. MSCIEAFE T 91-Day Treasury Bill Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio 4.58 1935 3.61 18.64 2.04 0.52 Holdings and allocations only include SMA accounts. 134 0.13 0.21 0.08 0.00 Attachment number 2 \nPage 1; ��11�:�� 25% 20% 15% 10% 5% �% -5% -1�% -15% -20% -25 % High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1; City of Clearwater Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years 9.09 -3.13 6.48 21.05 1.64 4.55 8.08 10.75 12.96 17.08 14.64 5.31 -10.56 1.31 13.80 -4.74 -035 3.97 6.14 7.79 11.33 9.16 4.19 -1330 -1.52 10.46 -6.29 -235 1.96 3.91 6.31 9.08 6.60 2.79 -15.59 -2.72 8.08 -7.94 -4.20 0.36 2.15 4.38 7.76 5.25 -0.74 -21.74 -5.54 4.04 -10.76 -6.46 -1.37 0.85 2.63 6.32 3.98 I International EQ Comp Net Ret 6.36 -15.04 Rank 15 70 � MSCI EAFE Net Ret 3.38 -11.73 Rank 66 35 0.28 16.67 31 15 -2.27 8.16 65 73 -4.64 -1.70 24 43 -7.87 -4.26 73 76 135 2.67 4.11 34 49 0.33 2.18 75 74 5.71 8.27 53 66 4.33 7.72 75 75 5.92 63 5.12 79 I[�'ii�:�7 so°io �o�io 6o�io so�io 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% Attachment number 2 \nPage 1� City of Clearwater Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December 2011 2010 2009 2008 2007 2006 2005 2004 High -3.13 25.22 76.36 -24.15 39.18 35.41 36.71 31.90 lst Qt -10.56 17.11 42.27 -40.21 18.13 29.39 20.84 23.58 Median -1330 11.98 35.69 -4333 11.88 26.09 15.25 19.98 3rd Qt -15.59 8.48 26.24 -47.44 7.76 22.29 11.58 17.15 Low -21.74 2.37 9.83 -57.07 0.74 11.41 6.45 10.24 I International EQ Comp Net Ret -15.04 18.37 Rank 70 20 � MSCI EAFE Net Ret -11.73 8.21 Rank 35 76 2003 2002 58.53 4.02 43.10 -9.37 37.76 -1430 32.58 -17.04 24.09 -22.59 57.93 -47.94 11.02 27.62 13.15 17.66 31.06 -13.03 11 77 58 37 64 72 81 40 32.46 -43.06 11.63 26.85 14.01 20.69 39.16 -15.66 59 46 52 41 57 40 40 62 136 I[�'ii�:�7 Attachment number 2 \nPage 1� City of Clearwater Risk Measure Summary International EQ Comp Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 2 1 4 3 8 8 15 15 Positive Periods 2 3 8 9 12 12 27 27 Up Market Capture 0.95 1.22 1.18 1.05 Down Market Capture 1.14 0.85 1.00 1.00 Batting Average 0.25 0.67 0.60 0.50 Worst Quarter �21.66 � 18.95 �21.66 � 18.95 �26.42 �20.50 �26.42 �20.50 Best Quarter 6.36 3.45 31.05 25.85 31.05 25.85 31.05 25.85 Worst 4 Quarters � 15.04 � 11.73 � 15.04 � 1 L73 �47.94 �46.20 �47.94 m46.20 Best 4 Quarters � 15.04 � 11.73 71.81 55.20 71.81 55.20 71.81 58.14 Standard Deviation 28.27 27.26 28.60 25.56 23.54 22.26 Beta 1.O1 1.09 1.03 Alpha 1.99 0.94 0.26 R-Squared 0.94 0.95 0.95 Sharpe Ratio 0.59 0.29 �0.11 �0.22 0.12 0.09 Treynor Ratio 16.41 �2.88 2.81 Tracking Error 6.62 6.80 5.11 Information Ratio 1.22 0.49 0.21 I[�'ii�:�7 137 20.0 18.0 16.0 � 14.0 � a� 0 12.0 � � 10.0 � N 8.0 � � 6.0 4.0 2.0 0.0 14.0 Attachment number 2 \nPage 1� City of Clearwater Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 12/31/11 6.0 4.0 � 2.0 � � 0.0 w 0 � � -2.0 � � N -4.0 � �-6.0 -8.0 -10.0 14.0 16.6 19.2 I International EQ Comp [ MSCIEAFE Median 21.8 24.4 27.0 29.6 32.2 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 16.67 15 8.16 73 10.46 5 Years Ending 12/31/11 34.8 37.4 40.0 Standard Deviation Value Rank 28.29 58 27.26 48 27.48 16.6 19.2 I International EQ Comp i MSCIEAFE Median 21.8 24.4 27.0 29.6 32.2 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank -1.70 43 -4.26 76 -235 138 34.8 37.4 40.0 Standard Deviation Value Rank 28.60 78 25.56 41 26.15 ��11�:�� Attachment number 2 \nPage 1� City of Clearwater Earnest Partners as of 12/31/11 Portfolio Performance ("/o) 20.0 15.0 10.0 5.0 0.0 -5.0 -10.0 -15.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 � Earnest Partners � MSCI EAFE Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 4/30/OS EarnestPartners 7.59 -6.88 -6.88 19.09 -1.26 MSCI EAFE 338 -11.73 -11.73 816 -7.59 Asset Growth ($000) Beginning Market Value 25,711 29,711 29,711 16,392 29,002 Net Contributions & Withdrawals 5,493 5,488 5,488 5,484 5,484 Gain/Loss + Income 2,305 -1,691 -1,691 11,633 -978 Ending Market Value 33,508 33,508 33,508 33,508 33,508 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Arm HIdgs Plc Information Technology 4.64 Energy 16.08 Core Laboratories N Energy 413 Materials 11.18 Shire Health Care 4.01 Industrials 9.84 Schoeller Bleckmann Energy 3.87 Consumer Discretionary 5.86 United Industrial Co Financials 3.75 Consumer Staples 2.57 Weichai Power Co Industrials 2.91 Health Care 13.21 Rio Tinto Plc Materials 2.63 Financials 27.82 Bhp Billiton Ltd Materials 2.63 Information Technology 936 Diageo Consumer Staples 2.57 Telecom Services 410 Is MSCI Eafe Industrials 2.55 Utilities 0.00 ��11�:�� 139 � � a� � N � � � Attachment number 2 \nPage 1� City of Clearwater Earnest Partners as of 12/31/11 1.0 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 -6.0 -7.0 -8.0 -5.0 Risk/Return Analysis Periods from 4/08 to 12/11 Alpha Beta R-Squared 2.01 1.09 0.98 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio e Earnest Partners -1.26 27.06 -0.06 1.40 ;. MSCI EAFE -7.59 2537 -0.32 T 91-Day Treasury Bill 0.40 0.21 0.00 ��11�:�� 140 25% 20% 15% 10% 5% �% -5% -1�% -15% -20% -25 % High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1� City of Clearwater Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 12/11 e Earnest Partners Net Ret Rank � MSCI EAFE Net Ret Rank Last Last Last 2 Last 3 Qtr Year Years Years 9.09 5.31 4.19 2.79 -0.74 7.59 6 3.38 66 -3.13 -10.56 -13.30 -15.59 -21.74 • :S -11.73 35 141 6.48 1.31 -1.52 -2.72 -5.54 4.20 9 -2.27 65 21.OS 13.80 10.46 8.08 4.04 19.09 10 8.16 73 I[�'ii�:�7 so°io �o�io 6o�io so�io 40% 30% 20% 10% 0% -10% -20% -30% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1� City of Clearwater Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December e Earnest Partners Net Ret Rank � MSCI EAFE Net Ret Rank 2011 2010 2009 -3.13 25.22 76.36 -10.56 17.11 42.27 -1330 11.98 35.69 -15.59 8.48 26.24 -21.74 2.37 9.83 •:: -11.73 35 16.61 27 8.21 76 142 55.54 12 32.46 59 I[�'ii�:�7 Zo.o 1 g.o 16.0 � 14.0 � � 12.0 0 � � lo.o � � g.o .� � � 6.0 ¢ 4.0 2.0 11 .� Attachment number 2 \nPage 1� City of Clearwater Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 12/31 / 11 16.6 19.2 21.8 24.4 27.0 29.6 32.2 34.8 37.4 40.0 Historical Standard Deviation of Return Earnest Partners MSCI EAFE Median Annualized Net of Fee Return Value Rank 19.09 10 8.16 73 10.46 143 Standard Deviation Value Rank 28.96 68 27.26 48 27.48 �[i�'ii�:�•7 City of Clearwater Global Equity Summary Statistics Earnest Partners Period Ending 12/11 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Five Year Dividend Growth Ten Largest Holdings Arm Hldgs Plc Core Laboratories N Shire Schoeller Bleckmann United Industrial Co Weichai Power Co Rio Tinto Plc Bhp Billiton Ltd Diageo Is MSCI Eafe Ten Best Performers China Shipping Conta Orient Overseas Int China Merchants Bank Grupo Elektra(New) Schoeller Bleckmann Core Laboratories N China Oilfield Servi Industrial & Commerc Itau Unibanco Banco Royal Dutch Shell Market Value 1,422,238 1,264, 845 1,230,504 1,186,701 1,149,773 892,806 807,180 805,182 787,056 782,574 Quarterly Ret 46.62 43.39 31.36 29.79 27.52 27.16 21.91 20.96 20.64 19.00 Portfolio 52 30,680,300 28,453,692 14,624,174 2.53 12.95 12.35 1.03 1.54 79.66 5.65 1.73 144 % of Portfolio 4.64 4.13 4.01 3.87 3.75 2.91 2.63 2.63 2.57 2.55 Ten Worst Performers Erste Group Bank Ag Icici Bk Ltd Ceragon Networks Ltd Transocean Ltd Zug Societe Generale Denso Corp Nippon Steel Corp Credit Suisse Group Koninklijke Kpn Nv Komercni Banka Attachment number 2 \nPage 1� MSCI EAFE 924 47,148,032 6,284,282 3.78 12.01 13.23 1.00 1.28 87.03 -1.63 3.18 Quarterly Ret 8.51 27.16 11.33 27.52 3.14 6.80 10.98 6.31 13.89 4.87 Quarterly Ret -32.11 -23.88 -19.37 -18.19 -16.77 -15.18 -14.13 -10.52 -9.66 Item'# 5 Attachment number 2 \nPage 1� City of Clearwater Global Performance Attribution Analysis Earnest Partners Quarter Ending 12/ 11 Benchmark Portfolio Return Attribution Countries/ Active Currency Local US $ Active Currency Local US $ Market Currency Securiry Currencies Weight Weight Return Return Weight Weight Return Return Select Select Select Total Australia 8.43 8.43 2.25 7.86 2.56 0.00 6.31 6.31 0.11 -0.54 0.10 -0.32 Austria 0.26 0.26 -1.93 -5.11 5.34 5.20 9.82 6.26 -0.31 -0.12 0.63 0.20 Belgium 0.96 0.96 5.58 2.15 0.00 0.00 -0.01 0.03 0.01 Bermuda 0.00 0.00 0.00 0.00 Brazil 0.00 0.00 4.85 0.00 16.57 16.57 -0.20 0.80 0.60 Canada 0.00 0.00 2.04 0.00 13.67 13.67 -0.09 0.28 0.19 Cayman Islands 0.00 0.00 0.00 0.00 ChannelIslands 0.06 0.06 -2.71 -2.94 0.00 0.00 0.00 -0.00 0.00 China 0.00 0.00 10.39 0.00 15.23 15.50 -0.43 1.58 1.15 Colombia 0.00 0.00 2.79 0.00 7.57 7.57 -0.12 0.21 0.09 Cyprus 0.00 0.00 0.00 0.00 Czech Republic 0.00 0.00 0.73 0.71 -3.09 -9.13 -0.03 0.01 -0.02 -0.05 Denmark 1.00 1.00 11.74 8.25 0.00 0.00 -0.08 0.03 -0.05 Finland 0.89 0.89 1.08 -2.20 0.00 0.00 0.03 0.02 0.05 France 9.07 9.07 6.22 2.77 2.19 2.14 -4.23 -7.34 -0.14 0.18 -0.23 -0.19 Germany 7.74 7.74 7.56 4.07 0.00 0.00 -0.26 0.21 -0.05 Greece 0.15 0.15 -23.50 -25.99 0.00 0.00 0.04 0.00 0.04 Hong Kong 2.70 2.70 5.76 6.00 1.59 11.68 43.06 43.39 -0.02 0.09 0.59 0.67 India 0.00 0.00 1.80 0.00 -23.88 -23.88 -0.08 -0.43 -0.51 Ireland 0.25 0.25 25.85 21.77 1.76 0.00 6.41 6.41 0.33 0.01 -0.34 -0.01 Isle of Man 0.08 0.08 -1.95 -1.46 0.00 0.00 0.00 -0.00 0.00 Israel 0.65 0.65 6.78 4.85 0.94 0.00 -19.37 -19.37 0.01 0.01 -0.25 -0.23 Italy 2.33 2.33 2.94 -0.40 0.00 0.00 0.03 0.06 0.09 Japan 23.09 23.09 -4.09 -3.91 8.09 7.88 -8.16 -7.99 1.24 -0.15 -0.33 0.76 Kazakhstan 0.00 0.00 0.00 0.00 Luxembourg 0.00 0.00 0.00 0.00 Mexico 0.00 0.00 2.25 2.19 30.97 29.79 -0.09 0.02 0.70 0.62 Netherlands 2.42 2.42 10.07 6.56 5.16 1.85 16.93 13.60 0.16 0.02 0.35 0.53 New Zealand 0.14 0.14 -5.67 -3.74 0.00 0.00 0.01 -0.00 0.01 Norway 0.89 0.89 10.66 8.86 5.37 3.39 1.45 5.45 0.29 -0.02 -0.49 -0.23 Benchmark : MSCI EAFE Index Gross Dividend 145 �[iai1�:�•7 Attachment number 2 \nPage 1; City of Clearwater Global Performance Attribution Analysis Earnest Partners Quarter Ending 12/ 11 Benchmark Portfolio Return Attribution Countries/ Active Currency Local US $ Active Currency Local US $ Market Currency Securiry Currencies Weight Weight Return Return Weight Weight Return Return Select Select Select Total Panama 0.00 0.00 1.65 0.00 8.58 8.58 -0.07 0.14 0.07 Portugal 0.25 0.25 -6.11 -9.15 0.00 0.00 0.03 0.01 0.03 Scotland 0.08 0.08 22.84 22.55 0.00 0.00 -0.02 -0.00 -0.02 Singapore 1.72 1.72 -1.06 -0.62 4.02 3.91 2.63 3.14 -0.12 0.03 0.15 0.06 South Korea 0.00 0.00 2.19 0.00 6.94 6.94 -0.09 0.15 0.06 Spain 3.48 3.48 1.24 -2.05 2.17 2.11 8.23 4.71 0.04 0.03 0.15 0.22 Sweden 2.86 2.86 8.86 9.07 2.19 2.14 15.57 15.79 -0.03 -0.01 0.15 0.11 Switzerland 8.55 8.55 7.24 4.17 7.59 2.59 -3.13 -3.85 -0.03 0.14 -0.79 -0.68 Taiwan 0.00 0.00 2.18 0.00 2.84 2.84 -0.09 0.06 -0.03 United Kingdom 22.16 22.16 9.38 9.12 17.25 8.69 10.91 10.62 -0.26 -0.07 0.26 -0.07 United States 0.00 0.00 2.90 45.52 7.82 7.82 -0.12 0.36 0.23 0.47 100.00 100.00 4.18 3.38 100.00 100.00 7.48 7.08 -0.36 0.33 3.67 3.63 Benchmark : MSCI EAFE Index Gross Dividend Market Selection [Portfolio Active Weight - Benchmark Active Weight] x[Benchmark Local Return - Benchmark Total Local Return] Currency Selection [Portfolio Currency Weight - Benchmark Currency Weight] x[(Benchmark US$ Return - Benchmark Local Return) -(Benchmark Total US$ Return - Benchmark Total Local Return) ] Security Selection [Portfolio Active Weight] x[Portfolio Local Return - Benchmark Local Return] �[i�'ii�:�•7 146 Attachment number 2 \nPage 1; City of Clearwater International Equity Sector Attribution Analysis Earnest Partners Quarter Ending 12/ 11 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 13.52 8.18 18.19 15.05 0.42 0.62 1.05 Materials 10.88 10.06 4.22 4.40 �0.02 0.01 �0.01 Industrials 8.82 1231 12.32 4.32 0.71 �0.03 0.67 Consumer Discretionary 6.14 10.14 7.07 1.07 0.37 0.09 0.46 Consumer Staples 2.31 11.41 13.89 5.70 0.19 �0.21 a0.02 Health Care 13.28 9.74 8.78 5.76 0.40 0.08 0.48 Financials 30.60 22.02 1.89 �0.12 0.61 �0.30 0.31 Information Technology 9.57 4.97 3.85 �0.4� 0.41 �0.18 0.24 Telecom. Services 4.88 6.26 3.15 2.12 0.05 0.02 0.07 Utilities 0.00 4.91 �4.46 0.00 0.39 0.39 100.00 100.00 7.02 3.39 3.14 0.49 3.63 Index - MSCI EAFE Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ]*[ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ]*[ Index Sector Return - Index Total Return ] Trading Effect 1.21% [ Actual Return 8.24% ]-[ Buy Hold Return 7.02% ] 147 �[i�'ii�:�•7 Attachment number 2 \nPage 1; City of Clearwater Wentworth & Violich as of 12/31/11 Portfolio Performance ("/o) 20.0 15.0 10.0 5.0 0.0 -5.0 -10.0 -15.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 � Wentworth & Violich � MSCI EAFE Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 4/30/OS Wentworth & Violich 10.22 -13.64 -13.64 16.56 -515 MSCI EAFE 338 -11.73 -11.73 816 -7.59 Asset Growth ($000) Beginning Market Value 24,580 31,374 31,374 15,083 29,002 Net Contributions & Withdrawals -5 -7 -7 -9 -9 Gain/Loss + Income 2,512 -4,280 -4,280 12,013 -1,906 Ending Market Value 27,087 27,087 27,087 27,087 27,087 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Bhp Billiton Ltd Materials 5.79 Energy 32.41 Potash Corp Sask Inc Materials 531 Materials 28.67 Agrium Inc Materials 4.90 Industrials 15.41 Schlumberger Ltd Energy 4.88 Consumer Discretionary 0.00 Nestle S A Consumer Staples 4.76 Consumer Staples 16.56 Noble Corporation Ba Energy 4.55 Health Care 2.98 Canadian Pac Railway Industrials 4.42 Financials 3.97 Canadian Natl Ry Co Industrials 435 Information Technology 0.00 Weatherford Internat Energy 4.20 Telecom Services 0.00 Cooper Industries Pl Industrials 419 Utilities 0.00 ��11�:�� 148 Attachment number 2 \nPage 1; City of Clearwater Wentworth & Violich as of 12/31/11 � � a� � N � � � 1.0 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 -6.0 -7.0 -8.0 -5.0 Risk/Return Analysis Periods from 4/08 to 12/11 Alpha Beta R-Squared 0.46 1.15 0.89 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio w Wentworth & Violich -515 28.96 -019 0.06 ;. MSCI EAFE -7.59 2537 -0.32 T 91-Day Treasury Bill 0.40 0.21 0.00 ��11�:�� 149 25% 20% 15% 10% 5% �% -5% -1�% -15% -20% -25 % High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1; City of Clearwater Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Qtr Year Years Years 9.09 5.31 4.19 2.79 -0.74 w Wentworth & Violich Net Ret 10.22 Rank 3 � MSCI EAFE Net Ret 3.3 8 Rank 66 -3.13 -10.56 -13.30 -15.59 -21.74 -13.64 56 -11.73 35 150 6.48 1.31 -1.52 -2.72 -5.54 0.77 27 -2.27 65 21.OS 13.80 10.46 8.08 4.04 16.56 15 8.16 73 I[�'ii�:�7 so°io �o�io 6o�io so�io 40% 30% 20% 10% 0% -10% -20% -30% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1; City of Clearwater Calendar Year Performance Comparison Total Returns of International Equity Portfolios Years Ending December 2011 2010 2009 -3.13 25.22 76.36 -10.56 17.11 42.27 -1330 11.98 35.69 -15.59 8.48 26.24 -21.74 2.37 9.83 w Wentworth & Violich Net Ret -13 .64 Rank 56 � MSCI EAFE Net Ret -11.73 Rank 35 17.58 23 8.21 76 151 55.98 12 32.46 59 I[�'ii�:�7 Zo.o 1 g.o 16.0 � 14.0 � � 12.0 0 � � lo.o � � g.o .� � � 6.0 ¢ 4.0 2.0 11 .� Attachment number 2 \nPage 1; City of Clearwater Return vs Risk Total Returns of International Equity Portfolios 3 Years Ending 12/31 / 11 16.6 19.2 21.8 24.4 27.0 29.6 32.2 34.8 37.4 40.0 Historical Standard Deviation of Return w Wentworth & Violich � MSCI EAFE Median Annualized Net of Fee Return Value Rank 16.56 15 8.16 73 10.46 152 Standard Deviation Value Rank 28.93 68 27.26 48 27.48 �[i�'ii�:�•7 City of Clearwater Global Equity Summary Statistics Wentworth & Violich Period Ending 12/11 Total Number Of Securities Equity Market Value Average Capitalization $(000) Median Capitalization $(000) Equity Segment Yield Equity Segment P/E - Average Equity Segment P/E - Median Equity Segment Beta Price/Book Ratio Debt/Equity Ratio Five Year Earnings Growth Five Year Dividend Growth Ten Largest Holdings Bhp Billiton Ltd Potash Corp Sask Inc Agrium Inc Schlumberger Ltd Nestle S A Noble Corporation Ba Canadian Pac Railway Canadian Natl Ry Co Weatherford Internat Cooper Industries Pl Ten Best Performers Tenaris S A Nabors Industries Lt Canadian Pac Railway Canadian Nat Res Ltd Core Laboratories N Partnerre Hldgs Ltd Teck Resources Ltd Weatherford Internat Canadian Natl Ry Co Cooper Industries Pl Market Value 1,444,384 1,326,326 1,223,415 1,219,334 1,188,826 1,134,761 1,103,021 1,086,092 1,049,322 1,046,449 Quarterly Ret 47.23 41.44 41.35 28.01 27.16 23.98 21.97 19.90 18.48 18.04 Portfolio 36 24,990,191 49,495,200 21,166,956 2.00 16.18 16.19 0.00 1.94 47.24 11.82 5.41 153 % of Portfolio 5.79 5.31 4.90 4.88 4.76 4.55 4.42 4.35 4.20 4.19 Ten Worst Performers Transocean Ltd Zug Manulife Finl Corp Potash Corp Sask Inc Vale S A Axa Sa Bunge Limited Brookfield Asset Mgm Agrium Inc Novartis A G Fibria Celulose S A Attachment number 2 \nPage 1; MSCI EAFE 924 47,148,032 6,284,282 3.78 12.01 13.23 1.00 1.28 87.03 -1.63 3.18 Quarterly Ret 6.31 -4.35 1.O1 14.77 4.74 3.38 41.35 18.48 19.90 18.04 Quarterly Ret -18.19 -5.25 -4.35 -3.80 -2.21 -1.48 0.19 1.O1 2.51 Item'�45 Attachment number 2 \nPage 1; City of Clearwater Global Performance Attribution Analysis Wentworth & Violich Quarter Ending 12/ 11 Benchmark Portfolio Return Attribution Countries/ Active Currency Local US $ Active Currency Local US $ Market Currency Securiry Currencies Weight Weight Return Return Weight Weight Return Return Select Select Select Total Australia 8.43 8.43 2.25 7.86 6.15 0.00 6.31 6.31 0.04 -0.54 0.25 -0.25 Austria 0.26 0.26 -1.93 -5.11 0.00 0.00 0.02 0.01 0.02 Belgium 0.96 0.96 5.58 2.15 0.00 0.00 -0.01 0.03 0.01 Bermuda 0.00 0.00 9.17 0.00 20.81 20.81 -0.38 1.91 1.53 Brazil 0.00 0.00 3.72 0.00 -3.65 -3.65 -0.16 -0.14 -0.29 Canada 0.00 0.00 28.59 0.19 11.60 11.61 -L19 0.00 3.32 2.12 Cayman Islands 0.00 0.00 4.99 0.00 3.38 3.38 -0.21 0.17 -0.04 ChannelIslands 0.06 0.06 -2.71 -2.94 0.00 0.00 0.00 -0.00 0.00 China 0.00 0.00 0.00 0.00 Cyprus 0.00 0.00 0.00 0.00 Denmark 1.00 1.00 11.74 8.25 0.00 0.00 -0.08 0.03 -0.05 Finland 0.89 0.89 1.08 -2.20 0.00 0.00 0.03 0.02 0.05 France 9.07 9.07 6.22 2.77 0.52 0.00 -2.21 -2.21 -0.17 0.24 -0.04 0.02 Germany 7.74 7.74 7.56 4.07 2.55 0.00 14.54 14.54 -0.18 0.21 0.18 0.21 Greece 0.15 0.15 -23.50 -25.99 0.00 0.00 0.04 0.00 0.04 Hong Kong 2.70 2.70 5.76 6.00 0.00 0.00 -0.04 -0.03 -0.07 Ireland 0.25 0.25 25.85 21.77 2.34 0.00 8.88 8.88 0.45 0.01 -0.40 0.06 Isle of Man 0.08 0.08 -1.95 -1.46 0.00 0.00 0.00 -0.00 0.00 Israel 0.65 0.65 6.78 4.85 0.00 0.00 -0.02 0.01 -0.01 Italy 2.33 2.33 2.94 -0.40 0.00 0.00 0.03 0.06 0.09 Japan 23.09 23.09 -4.09 -3.91 0.00 0.00 1.91 -0.22 1.68 Kazakhstan 0.00 0.00 0.00 0.00 Luxembourg 0.00 0.00 2.73 0.00 47.23 47.23 -0.11 1.29 1.17 Netherland Antilles 0.00 0.00 4.83 0.00 14.77 14.77 -0.20 0.71 0.51 Netherlands 2.42 2.42 10.07 6.56 6.29 0.00 18.58 18.58 0.23 0.07 0.54 0.83 New Zealand 0.14 0.14 -5.67 -3.74 0.00 0.00 0.01 -0.00 0.01 Norway 0.89 0.89 10.66 8.86 0.16 0.00 2.97 2.97 -0.05 0.01 -0.01 -0.05 Portugal 0.25 0.25 -6.11 -9.15 0.00 0.00 0.03 0.01 0.03 Scotland 0.08 0.08 22.84 22.55 0.00 0.00 -0.02 -0.00 -0.02 Singapore 1.72 1.72 -1.06 -0.62 0.00 0.00 0.09 -0.02 0.07 Benchmark : MSCI EAFE Index Gross Dividend 154 �[iai1�:�•7 Attachment number 2 \nPage 1; City of Clearwater Global Performance Attribution Analysis Wentworth & Violich Quarter Ending 12/ 11 Benchmark Portfolio Return Attribution Countries/ Active Currency Local US $ Active Currency Local US $ Market Currency Securiry Currencies Weight Weight Return Return Weight Weight Return Return Select Select Select Total Spain 3.48 3.48 1.24 -2.05 0.00 0.00 0.10 0.09 0.19 Sweden 2.86 2.86 8.86 9.07 0.00 0.00 -0.13 -0.03 -0.16 Switzerland 8.55 8.55 7.24 4.17 17.99 0.00 3.73 3.73 0.29 0.19 -0.63 -0.15 United Kingdom 22.16 22.16 9.38 9.12 9.98 0.00 12.79 12.79 -0.63 -0.12 0.34 -0.41 United States 0.00 0.00 0.00 99.81 0.80 0.80 100.00 100.00 4.18 3.38 100.00 100.00 11.33 11.34 -0.31 0.80 7.47 7.96 Benchmark : MSCI EAFE Index Gross Dividend Market Selection [Portfolio Active Weight - Benchmark Active Weight] x[Benchmark Local Return - Benchmark Total Local Return] Currency Selection [Portfolio Currency Weight - Benchmark Currency Weight] x[(Benchmark US$ Return - Benchmark Local Return) -(Benchmark Total US$ Return - Benchmark Total Local Return) ] Security Selection [Portfolio Active Weight] x[Portfolio Local Return - Benchmark Local Return] �[i�'ii�:�•7 155 Attachment number 2 \nPage 1i City of Clearwater International Equity Sector Attribution Analysis Wentworth & Violich Quarter Ending 12/ 11 Weight Return Selection GICS Sectors Portfolio Index Portfolio Index Stock Sector Total Energy 30.20 8.18 16.40 15.05 0.41 2.57 2.97 Materials 31.12 10.06 4.53 4.40 0.04 0.21 0.25 Industrials 13.89 1231 22.60 4.32 2.54 0.01 2.55 Consumer Discretionary 0.00 10.14 1.07 0.00 0.23 0.23 Consumer Staples 17.25 11.41 8.69 5.70 0.52 0.13 0.65 Health Care 3.28 9.74 2.51 5.76 �0.11 �0.15 a0.26 Financials 4.26 22.02 5.95 �0.12 0.26 0.62 0.88 Information Technology 0.00 4.97 �0.4� 0.00 0.19 0.19 Telecom. Services 0.00 6.26 2.12 0.00 0.08 0.08 Utilities 0.00 4.91 �4.46 0.00 0.39 0.39 100.00 100.00 11.34 3.39 3.65 4.29 7.95 Index - MSCI EAFE Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ]*[ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ]*[ Index Sector Return - Index Total Return ] Trading Effect 0.00% [ Actual Return 11.34% ]-[ Buy Hold Return 11.34% ] 156 �[i�'ii�:�•7 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 -10.0 -15.0 -20.0 City of Clearwater Eaton Vance Mgmt as of 12/31/11 Portfolio Performance ("/o) Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 � Eaton Vance Mgmt , MSCI Emg Mkts Net of Fee Returns Eaton Vance Mgmt MSCI Emg Mkts Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value Attachment number 2 \nPage 1i Incept Ztr YTD 1 Year 3 Year 5 Year 10 Year 4/30/OS 2.20 -19.27 -19.27 18.48 -4.02 4.45 -18.17 -18.17 20.42 -437 24,473 30,980 30,980 4,244 0 0 0 -157 538 -5,969 -5,969 20,924 25,011 25,011 25,011 25,011 157 8,277 -157 16,891 25,011 ��11�:�� � � a� � N � � � Attachment number 2 \nPage 1i City of Clearwater Eaton Vance Mgmt as of 12/31/11 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0 -2.5 -3.0 -3.5 -4.0 -4.5 -5.0 Risk/Return Analysis Periods from 4/08 to 12/11 Alpha Beta R-Squared -0.04 0.99 0.98 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio v Eaton Vance Mgmt -4.02 29.78 -015 -0.06 ;. MSCI Emg Mkts -4.37 31.09 -015 T 91-Day Treasury Bill 0.40 0.21 0.00 ��11�:�� 158 30% 25% 20% 15% 10% 5% �% -5% -1�% -15% -20% -25 % -30% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1i City of Clearwater Cumulative Performance Comparison Total Returns of Emerging Markets Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Qtr Year Years Years 10.44 5.86 4.01 3.54 -2.05 v Eaton Vance Mgmt Net Ret 2.20 Rank 85 � MSCI Emg Mkts Net Ret 4.45 Rank 43 -1.80 -ll.os -17.41 -19.16 -25.62 -19.27 76 -18.17 64 159 12.96 1.6� 0.30 -2.10 -6.05 -0.21 53 -1.24 60 25.89 22.1� 19.75 18.72 8.13 .,. : 20.42 38 I[�'ii�:�7 1 oo°io 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% -20% -30% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1i City of Clearwater Calendar Year Performance Comparison Total Returns of Emerging Markets Portfolios Years Ending December 2011 2010 2009 -1.80 29.89 88.13 -11.OS 23.83 77.73 -17.41 20.47 71.34 -19.16 18.43 63.20 -25.62 7.41 27.05 v Eaton Vance Mgmt Net Ret -19.27 Rank 76 � MSCI Emg Mkts Net Ret -18.17 Rank 64 23.33 30 19.19 60 � 67.01 69 79.02 19 I[�'ii�:�7 33.9 31.1 28.3 � 25.5 � � 22.8 0 � � 20.0 � � 17.2 .� � �, 14.4 d 11.6 .. .1 11 Attachment number 2 \nPage 1i City of Clearwater Return vs Risk Total Returns of Emerging Markets Portfolios 3 Years Ending 12/31 / 11 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 v Eaton Vance Mgmt � MSCI Emg Mkts Median Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 18.48 78 20.42 3 8 19.75 � Standard Deviation Value Rank 30.64 84 29.12 49 29.26 I[�'ii�:�7 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 -10.0 -15.0 -20.0 -25.0 City of Clearwater Wellington Mgmt as of 12/31 / 11 Portfolio Performance ("/o) Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/08 Attachment number 2 \nPage 1i � Wellington Mgmt MSCI Emg Mkts Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 3/31/OS Wellington Mgmt 1.87 -22.97 -22.97 15.94 -3.27 MSCI Emg Mkts 4.45 -18.17 -18.17 20.42 -2.26 Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 21,765 28,784 28,784 8,902 -15,000 -15,000 -15,000 -15,000 178 -6,842 -6,842 13,040 6,942 6,942 6,942 6,942 � 8,000 -15,000 13,942 6,942 ��11�:�� � � a� � N � � � Attachment number 2 \nPage 1i City of Clearwater Wellington Mgmt as of 12/31 / 11 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0 -2.5 -3.0 -3.5 -5.0 Risk/Return Analysis Periods from 3/08 to 12/11 Alpha Beta R-Squared -033 0.97 0.99 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio 1 Wellington Mgmt -3.27 33.65 -011 -0.42 ;. MSCI Emg Mkts -2.26 34.60 -0.08 T 91-Day Treasury Bill 0.42 033 0.00 ��11�:�� 163 30% 25% 20% 15% 10% 5% �% -5% -1�% -15% -20% -25 % -30% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1i City of Clearwater Cumulative Performance Comparison Total Returns of Emerging Markets Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Qtr Year Years Years 10.44 5.86 4.01 3.54 -2.05 1 Wellington Mgmt Net Ret 1.87 Rank 87 � MSCI Emg Mkts Net Ret 4.45 Rank 43 -1.80 -ll.os -17.41 -19.16 -25.62 -22.97 83 -18.17 64 164 12.96 1.6� 0.30 -2.10 -6.05 -5.48 91 -1.24 60 25.89 22.1� 19.75 18.72 8.13 15.94 78 20.42 38 I[�'ii�:�7 1 oo°io 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% -20% -30% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1i City of Clearwater Calendar Year Performance Comparison Total Returns of Emerging Markets Portfolios Years Ending December 2011 2010 2009 -1.80 29.89 88.13 -11.OS 23.83 77.73 -17.41 20.47 71.34 -19.16 18.43 63.20 -25.62 7.41 27.05 1 Wellington Mgmt Net Ret -22.97 Rank 83 � MSCI Emg Mkts Net Ret -18.17 Rank 64 •• . .a 19.19 60 165 74.44 35 79.02 19 I[�'ii�:�7 33.9 31.1 28.3 � 25.5 � � 22.8 0 � � 20.0 � � 17.2 .� � �, 14.4 d 11.6 .. .1 11 Attachment number 2 \nPage 1 City of Clearwater Return vs Risk Total Returns of Emerging Markets Portfolios 3 Years Ending 12/31 / 11 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 1 Wellington Mgmt � MSCI Emg Mkts Median Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 15.94 78 20.42 3 8 19.75 � Standard Deviation Value Rank 29.36 59 29.12 49 29.26 I[�'ii�:�7 Attachment number 2 \nPage 1 City of Clearwater Fixed Income Comp as of 12/31 / 11 Portfolio Performance ("/o) 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 � Fixed Income Comp � BC Agg Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 12/31/87 Fixed Income Comp 119 5.94 5.94 8.53 6.79 5.72 6.96 BC Agg 1.12 7.84 7.84 6J7 6.50 SJ8 737 Asset Growth ($000) Beginning Market Value 196,919 192,283 192,283 198,649 210,399 178,032 59,224 Net Contributions & Withdrawals 821 -3,476 -3,476 -4,414 -4,414 -4,414 -4,414 Gain/Loss + Income 2,347 11,280 11,280 5,852 -5,897 26,470 145,277 Ending Market Value 200,087 200,087 200,087 200,087 200,087 200,087 200,087 Top Fixed Income Holdings Sector Allocation Sector % Port % Port FNMA C130 - Tba Jan Mortgage 2.09 Finance 18.97 United States Treas Government 1.64 Government 1438 United States Treas Government 1.41 Industrials 1718 United States Treas Government 1.40 Mortgage 41.89 FNMA C130 - Tba Jan Mortgage 137 Transportation 1.67 FNMA Pool #ad0494 Mortgage 131 Utilities 0.87 FNMA Pool A10851 Mortgage 1.28 Municipals 4.09 United States Treas Government 1.03 Foreign 0.55 FNMA Pool #ad0217 Mortgage 0.94 Miscellaneous 0.41 Xerox Corp Sr Nt 6.4 Industrials 0.89 ��11�:�� Holdings and allocations only include SMA accounts. 167 City of Clearwater Fixed Income Comp as of 12/31 / 11 7.5 7.0 ° 6.5 � � 6.0 � N 5.5 � � 5.0 4.5 4.0 1.0 1.5 Risk/Return Analysis Periods from 12/87 to 12/11 Alpha 0.23 Beta 0.59 R-Squared 0.57 F Fixed Income Comp ;. BC Agg T 91-Day Treasury Bill Holdings and allocations only include SMA accounts. 2.0 2.5 3.0 3.5 4.0 4.5 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio 6.96 313 0.92 -017 737 4.11 0.80 4.06 1.19 0.00 168 Attachment number 2 \nPage 1 ��11�:�� 22% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1 City of Clearwater Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Last 8 Last 9 Last 10 Qtr Year Years Years Years Years Years Years Years Years Years 5.49 13.88 11.85 19.64 9.11 8.58 8.21 7.69 7.81 8.69 8.60 2.34 7.79 8.41 10.52 7.53 7.30 6.87 6.31 6.15 6.31 6.60 1.28 6.16 6.89 7.87 6.43 6.55 6.23 5.70 5.52 5.40 5.86 0.89 3.87 5.79 5.89 5.15 5.42 5.28 4.99 4.80 4.78 5.20 0.00 0.09 1.72 1.78 0.83 1.97 2.57 2.82 2.89 3.26 3.64 F Fixed Income Comp Net Ret 1.19 5.94 Rank 55 54 � BC Agg Net Ret 1.12 7.84 Rank 59 23 6.65 8.53 7.00 6.79 55 44 34 39 7.19 6.77 6.39 6.50 42 65 52 52 � 6.50 5.93 37 38 6.14 5.60 55 57 5.68 5.46 42 47 5.44 5.29 56 57 5.72 57 5.78 55 I[�'ii�:�7 2s% 20% 15% 10% 5% �% -5% -1�% -15% -20% Attachment number 2 \nPage 1 City of Clearwater Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 High 13.88 15.82 21.09 9.76 9.73 11.68 6.79 10.76 20.91 12.61 1 st Qt 7.79 9.93 13.37 5.42 7.48 5.31 3.10 5.25 6.15 10.43 Median 6.16 7.13 8.34 3.14 6.53 4.57 2.55 4.35 4.51 9.33 3rd Qt 3.87 5.58 5.28 -2.27 5.06 4.13 2.04 3.17 3.60 6.99 Low 0.09 0.56 -0.49 -15.77 2.22 2.80 1.32 1.32 1.77 0.88 F Fixed Income Comp Net Ret 5.94 7.37 Rank 54 46 � BC Agg Net Ret 7.84 6.54 Rank 23 61 12.37 2.54 28 54 5.93 5.24 69 28 5.94 5.05 61 30 6.96 4.33 40 64 170 2.59 3.93 48 62 2.43 4.34 57 50 3.77 8.06 71 66 4.11 10.26 63 29 I[�'ii�:�7 Attachment number 2 \nPage 1 City of Clearwater Risk Measure Summary Fixed Income Comp Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 2 1 5 4 16 19 Positive Periods 4 4 10 11 15 16 80 77 Up Market Capture 0.76 1.20 1.06 0.88 Down Market Capture 0.30 1.22 0.30 Batting Average 0.50 0.67 0.55 0.47 Worst Quarter 0.87 0.42 �0.39 � L30 �2.54 � L30 �2.54 �2.87 Best Quarter 1.99 3.82 5.72 3.82 5.72 4.57 5.72 7.96 Worst 4 Quarters 5.94 7.84 4.29 3.90 0.68 3.13 �0.07 �3.23 Best 4 Quarters 5.94 7.84 15.09 9.50 15.87 10.56 15.87 18.48 Standard Deviation 3.81 3.22 4.03 3.46 3.13 4.11 Beta 0.83 0.97 0.59 Alpha 0.70 0.11 0.23 R-Squared 0.49 0.67 0.57 Sharpe Ratio 2.20 2.06 1.32 1.45 0.92 0.80 Treynor Ratio 10.10 5.47 4.93 Tracking Error 2.90 2.54 2.64 Information Ratio 0.57 0.10 �0.17 I[�'ii�:�7 171 18.0 16.0 14.0 � 12.0 � a� 0 10.0 � � 8.0 � N 6.0 � � 4.0 2.0 0.0 -2.0 0.0 � � a� 0 � � a� � � N � � Attachment number 2 \nPage 1 City of Clearwater Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 12/31/11 10.9 10.0 9.2 83 7.4 6.5 5.6 4.7 3.8 2.9 2.0 0.0 2.0 F Fixed Income Comp i BC Agg Median 4.0 6.0 8.0 10.0 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 8.53 44 6J7 65 7.87 5 Years Ending 12/31/11 12.0 14.0 Standard Deviation Value Rank 3.81 52 3.22 35 3.78 2.0 F Fixed Income Comp [ BC Agg Median 4.0 6.0 8.0 10.0 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 6J9 39 6.50 52 6.55 172 12.0 14.0 Standard Deviation Value Rank 4.03 48 3.46 31 4.23 ��11�:�� Attachment number 2 \nPage 1 City of Clearwater Dodge & Cox as of 12/31 / 11 Portfolio Performance ("/o) 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 2/29/04 � Dodge & Cox � BC Agg Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 2/29/04 Dodge & Cox 1.08 5.10 5.10 8.98 6J1 5.60 BC Agg 1.12 7.84 7.84 6J7 6.50 531 Asset Growth ($000) Beginning Market Value 109,892 105,690 105,690 98,118 96,434 75,656 Net Contributions & Withdrawals -2 -4 -4 -2,418 -2,418 -2,418 Gain/Loss + Income 1,182 5,386 5,386 15,373 17,057 37,835 Ending Market Value 111,073 111,073 111,073 111,073 111,073 111,073 Top Fixed Income Holdings Sector Allocation Sector % Port % Port United States Treas Government 2.95 Finance 20.96 United States Treas Government 2.53 Government 10.45 FNMA Pool #ad0494 Mortgage 236 Industrials 16.80 FNMA Pool A10851 Mortgage 230 Mortgage 41.39 United States Treas Government 1.85 Transportation 2.42 FNMA Pool #ad0217 Mortgage 1.70 Utilities 0.84 Xerox Corp Sr Nt 6.4 Industrials 1.61 Municipals 6.62 Fhgld Pool #g03771 Mortgage 1.54 Foreign 0.24 Aol Time Warner Inc Industrials 1.49 Miscellaneous 0.27 FNMA Pool Ae0381 Mortgage 1.46 ��11�:�� 173 � � a� � � N � � � 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 0.5 City of Clearwater Dodge & Cox as of 12/31 / 11 Risk/Return Analysis Periods from 2/04 to 12/11 Alpha 0.21 Beta 0.84 R-Squared 0.58 1.0 d Dodge & Cox ;. BC Agg T 91-Day Treasury Bill 1.5 2.0 2.5 3.0 3.5 4.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio 5.60 3.65 0.96 0.10 531 3.50 0.92 2.10 0.58 0.00 174 Attachment number 2 \nPage 1 ��11�:�� 22% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1 City of Clearwater Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Qtr Year Years Years Years Years Years Years 5.49 13.88 11.85 19.64 9.11 8.58 8.21 7.69 2.34 7.79 8.41 10.52 7.53 7.30 6.87 6.31 1.28 6.16 6.89 7.87 6.43 6.55 6.23 5.70 0.89 3.87 5.79 5.89 5.15 5.42 5.28 4.99 0.00 0.09 1.72 1.78 0.83 1.97 2.57 2.82 d Dodge & Cox Net Ret 1.08 Rank 63 � BC Agg Net Ret 1.12 Rank 59 5.10 6.31 62 65 7.84 7.19 23 42 8.98 7.03 37 34 6.77 6.39 65 52 175 6.71 6.53 43 37 6.50 6.14 52 55 5.93 38 5.60 57 I[�'ii�:�7 2s% 20% 15% 10% 5% �% -5% -1�% -15% -20% Attachment number 2 \nPage 1� City of Clearwater Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December 2011 2010 2009 2008 2007 2006 2005 High 13.88 15.82 21.09 9.76 9.73 11.68 6.79 1 st Qt 7.79 9.93 13.37 5.42 7.48 5.31 3.10 Median 6.16 7.13 8.34 3.14 6.53 4.57 2.55 3rd Qt 3.87 5.58 5.28 -2.27 5.06 4.13 2.04 Low 0.09 0.56 -0.49 -15.77 2.22 2.80 1.32 d Dodge & Cox Net Ret 5.10 Rank 62 � BC Agg Net Ret 7.84 Rank 23 7.53 14.53 44 17 6.54 5.93 61 69 176 1.37 5.47 60 67 5.24 6.96 28 40 5.62 2.40 21 59 4.33 2.43 64 57 I[�'ii�:�7 zz i zoi �xi ��i ]4% ]2% ]O% xi �i 4% 2% O% Attachment number 2 \nPage 1� City of Clearwater December 31, 2011 Cumulative Performance Comparison Total Returns of Fixed income Portfolios ] 2/] ] High 19.C4 ] st Qt ] 0.52 Mcdiai2 7.A7 3rd Qt S.A9 Low ].7A d Dodgc 8c Cox Rcturn A.9A Rank 37 � BC Agg Rcturn C.77 Rank CS �.�,� s.�,� 4.0 % 3.0 % 2.0 % 1.0% O.O % -1.0% -2.0 % -3.0 % -4.0 % -5.0 % -6.0 % 9/] ] 6/] ] ] 4.93 ] ] .79 9.97 A.53 x.�� c.xo CAC 523 0.44 0.44 9.79 A.42 29 2C 7.97 C RC 54 SC 3/]] ]2/]O ] ] .69 9.65 7.54 7.59 s.xs �.n 429 4.C5 0.55 0.C7 �.c� �.cx 23 23 530 5.9] CO 55 Dodge � Cox Value Added Analysis - Net of Fee 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 � Quarterly Value Added vs. BC Agg 177 - Cumulative Value Added '°�'° 2 Yr Rolling Avg (A�vivalized) Attachment number 2 \nPage 1� City of Clearwater Risk Measure Summary Dodge & Cox Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 1 1 4 4 7 9 Positive Periods 4 4 11 11 16 16 24 22 Up Market Capture 0.65 1.24 1.02 1.01 Down Market Capture �0.10 0.92 0.72 Batting Average 0.25 0.50 0.45 0.52 Worst Quarter 0.83 0.42 �0.43 � 1.30 �2.88 � L30 �2.88 �2.44 Best Quarter 1.91 3.82 6.98 3.82 6.98 4.57 6.98 4.57 Worst 4 Quarters 5.10 7.84 4.12 3.90 �0.26 3.13 �0.26 �0.81 Best 4 Quarters 5.10 7.84 17.78 9.50 17.78 10.56 17.78 10.56 Standard Deviation 4.31 3.22 4.23 3.46 3.94 3.63 Beta 0.69 0.83 0.84 Alpha 1.04 0.26 0.21 R-Squared 0.27 0.44 0.58 Sharpe Ratio 2.05 2.06 1.24 1.45 0.88 0.87 Treynor Ratio 12.84 6.29 4.15 Tracking Error 3.97 3.49 2.83 Information Ratio 0.52 0.05 0.10 I[�'ii�:�7 178 18.0 16.0 14.0 � 12.0 � a� 0 10.0 � � 8.0 � N 6.0 � � 4.0 2.0 0.0 -2.0 0.0 � � a� 0 � � a� � � N � � Attachment number 2 \nPage 1� City of Clearwater Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 12/31/11 10.9 10.0 9.2 83 7.4 6.5 5.6 4.7 3.8 2.9 2.0 0.0 2.0 d Dodge & Cox i BC Agg Median 4.0 6.0 8.0 10.0 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 8.98 37 6J7 65 7.87 5 Years Ending 12/31/11 12.0 14.0 Standard Deviation Value Rank 431 62 3.22 35 3.78 2.0 d Dodge & Cox [ BC Agg Median 4.0 6.0 8.0 10.0 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 6J1 43 6.50 52 6.55 179 12.0 14.0 Standard Deviation Value Rank 4.23 51 3.46 31 4.23 ��11�:�� Attachment number 2 \nPage 1� City of Clearwater Fixed Income, Mortgage and Municipals Summary Statistics Dodge & Cox Quarter Ending 12/ 11 Total Number Of Securities Total Market Value Yield to Maturity Time to Maturity Current Coupon Duration Effective Convexity Effective Duration Effective Maturity 0- 1 1 1-2 1 2- 3 2 3- 4 1 4- 5 1 5+ 1 GOVT AAA 4 AA A 1 BAA 2 BA B NR Yield to Maturity Quality Portfolio 178 108,625,945 2.63 15.00 5.75 4.90 0.44 4.55 6.80 0- 1 8 1- 3 2 3 - 5 11 5 - 7 10 7 - 10 11 10+ 55 0-1 8 1-3 27 3-4 16 4-6 23 6-8 5 8+ 17 Time to Maturity Duration 180 BC Agg 7,829 2.24 7.13 4.01 5.18 -0.45 4.95 7.13 0 - 3 8. 3 - 5 8. 5 - 7 65. 7 - 9 16. 9 - 11 1. 11+ 0. 0 - 1 10. 1 - 3 28. 3 - 4 15. 4 - 6 23. 6- 8 5. 8+ 16. Coupon Effective Duration �Ei�'ii�:�•'� Attachment number 2 \nPage 1� City of Clearwater Percent Invested by Sector and Quality Dodge & Cox As of 12/31/11 Moody's Quality Ratings Name Aaa Aa A Baa Ba B Other NR Total Government 10.45 --- --- --- --- --- --- --- 10.45 Treasury 7.71 --- --- --- --- --- --- --- 7.71 Agency 2.74 --- --- --- --- --- --- --- 2.74 Corporate --- 3.78 10.11 21.02 3.55 0.39 --- --- 38.85 Industrial --- 1.52 2.18 10.68 2.43 --- --- --- 16.81 Utility --- --- --- 0.46 --- 0.39 --- --- 0.85 Finance --- 2.27 7.70 9.88 1.12 --- --- --- 20.97 Yankee --- --- 0.24 --- --- --- --- --- 0.24 Transportation --- 0.54 0.81 1.07 --- --- --- --- 2.42 Mortgage 40.50 --- --- --- --- --- --- 0.89 41.39 GNMA --- --- --- --- --- FHLMC 8.44 --- --- --- --- --- --- --- 8.44 FNMA 29.70 --- --- --- --- --- --- 0.89 30.59 Other Mortgage 2.36 --- --- --- --- --- --- --- 2.36 Municipals --- 0.76 5.35 --- --- --- --- 0.52 6.63 Cash --- --- --- --- --- Other --- 0.27 --- --- --- --- --- --- 0.27 Total 50.95 5.35 16.27 22.09 3.55 0.39 --- 1.41 100.00 I[�'ii�:�7 181 Attachment number 2 \nPage 1� City of Clearwater Fixed Income Sector Attribution Analysis Dodge & Cox Quarter Ending 12/ 11 Weight Return Selection Portfolio Index Portfolio Index Securit Sector Total Finance 20.78 9.53 1.24 1.06 0.04 �0.03 0.00 Government 10.84 40.01 0.36 1.28 �0.10 0.02 �0.08 Industrials 17.85 10.07 1.75 2.04 �0.05 0.05 0.00 Mortgage 40.04 36.55 1.49 1.33 0.06 �0.00 0.06 Transportation 2.48 0.36 0.84 1.42 �0.01 0.00 �0.01 utllltles o.91 1.60 ��.�� z.ss �a.as �a.al �a.a� Municipals 6.58 0.00 2.28 1.77 0.03 0.03 0.06 Foreign 0.24 1.85 2.73 0.25 0.01 0.02 0.02 Miscellaneous 0.28 0.02 1.18 0.00 �0.00 �0.00 100.00 100.00 1.35 1.35 �0.08 0.08 �0.00 Index - Wilshire GCM Index Security Selection Return Attribution [ Portfolio Market Value Sector Percentage ]*[ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ]*[ Index Sector Return - Index Total Return ] Trading Effect -0.27% [ Actual Return 1.08% ]-[ Buy Hold Return 1.35% ] 182 �[i�'ii�:�•7 Attachment number 2 \nPage 1� City of Clearwater Western Asset Management Co. as of 12/31/11 Portfolio Performance ("/o) 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/04 � Western Asset Management Co. � BC Agg Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 9/30/04 Western Asset Management Co. 135 7.23 7.23 7.85 6.78 5.84 BC Agg 1.12 7.84 7.84 6J7 6.50 5.54 Asset Growth ($000) Beginning Market Value 86,180 81,482 81,482 99,655 94,634 74,568 Net Contributions & Withdrawals -14 -38 -38 -38 -38 -38 Gain/Loss + Income 1,165 5,887 5,887 -12,285 -7,264 12,801 Ending Market Value 87,331 87,331 87,331 87,331 87,331 87,331 Top Fixed Income Holdings Sector Allocation Sector % Port % Part FNMA C130 - Tba Jan Mortgage 4.79 Finance 15.74 United States Treas Government 3.22 Government 20.76 FNMA C130 - Tba Jan Mortgage 313 Industrials 17.78 Freddie Mac Gold Mortgage 1.96 Mortgage 42.69 GNMA Ii Poo1004978 Mortgage 1.74 Transportation 0.45 Federal Home Ln Mtg Government 1.70 Utilities 0.91 United States Treas Government 1.70 Municipals 0.00 GNMA Ii Poo1004772 Mortgage 1.62 Foreign 1.05 GNMA Ii Sf 30 - Tba Mortgage 1.62 Miscellaneous 0.62 Fhlm Pool A74793 Mortgage 1.52 ��11�:�� 183 Attachment number 2 \nPage 1� City of Clearwater Western Asset Management Co. as of 12/31/11 � � a� � � N � � � 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 0.5 Risk/Return Analysis Periods from 9/04 to 12/11 Alpha 0.01 Beta 1.07 R-Squared 0.91 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio w Western Asset Management 5.84 3.82 0.96 0.24 ;. BC Agg 5.54 3.41 0.99 T 91-Day Treasury Bill 217 1.02 0.00 ��11�:�� 184 22% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1� City of Clearwater Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 12/11 Last Last Last 2 Last 3 Last 4 Last 5 Last 6 Last 7 Qtr Year Years Years Years Years Years Years 5.49 13.88 11.85 19.64 9.11 8.58 8.21 7.69 2.34 7.79 8.41 10.52 7.53 7.30 6.87 6.31 1.28 6.16 6.89 7.87 6.43 6.55 6.23 5.70 0.89 3.87 5.79 5.89 5.15 5.42 5.28 4.99 0.00 0.09 1.72 1.78 0.83 1.97 2.57 2.82 w Western Asset Management Co. Net Ret 1.35 7.23 Rank 47 35 � BC Agg Net Ret 1.12 7.84 Rank 59 23 7.16 7.85 43 50 7.19 6.77 42 65 185 6.85 6.78 37 40 6.39 6.50 52 52 6.43 5.89 40 40 6.14 5.60 55 57 I[�'ii�:�7 2s% 20% 15% 10% 5% �% -5% -1�% -15% -20% Attachment number 2 \nPage 1! City of Clearwater Calendar Year Performance Comparison Total Returns of Fixed Income Portfolios Years Ending December 2011 2010 2009 2008 2007 2006 2005 High 13.88 15.82 21.09 9.76 9.73 11.68 6.79 1 st Qt 7.79 9.93 13.37 5.42 7.48 5.31 3.10 Median 6.16 7.13 8.34 3.14 6.53 4.57 2.55 3rd Qt 3.87 5.58 5.28 -2.27 5.06 4.13 2.04 Low 0.09 0.56 -0.49 -15.77 2.22 2.80 1.32 w Western Asset Management Co. Net Ret 7.23 7.09 Rank 35 50 � BC Agg Net Ret 7.84 6.54 Rank 23 61 9.24 3.92 44 44 5.93 5.24 69 28 186 6.51 4.66 50 45 6.96 4.33 40 64 2.77 39 2.43 57 I[�'ii�:�7 zz i zoi �xi ��i ]4% ]2% ]O% xi �i 4% 2% O% Attachment number 2 \nPage 1! City of Clearwater December 31, 2011 Cumulative Performance Comparison Total Returns of Fixed income Portfolios ]2/]] 9/]] 6/]] 3/]] ]2/]O High ] 9.64 ] 4.93 ] ] .79 ] ] .69 9.65 ] st Qt ] 0.52 9.97 A.53 7.54 7.59 Mcdiai2 7.A7 A.79 6.A0 S.A3 6.]] 3rd Qt S.A9 6A6 523 429 4.65 Low ].7A 0.44 0.44 0.55 0.67 w Wcstcrn Assct Managcmcnt Co. Rctun2 7.A5 920 736 623 6.73 Rank 50 37 39 42 37 � BC Agg Rctun2 6.77 7.97 6R6 530 5.9] Rank 65 54 56 60 55 z.s� z.�,� �.s� �.�,� �,.s� �,.�,� -�,.s� -�.�,� -�.s� -z.�,� -z.s� Western Asset Management Co. Value Added Analysis - Net of Fee 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 � Quarterly Value Added vs. BC Agg - Cumulat3ve Value Added '°�'° 2 Yr Rolling Avg (A�vivalized) 187 Attachment number 2 \nPage 1! City of Clearwater Risk Measure Summary Western Asset Management Co. Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 0 0 2 1 5 4 9 8 Positive Periods 4 4 10 11 15 16 20 21 Up Market Capture 0.92 1.14 1.09 1.08 Down Market Capture 0.84 1.53 1.23 Batting Average 0.50 0.67 0.60 0.62 Worst Quarter 0.52 0.42 � 1.09 � L30 �2.17 � L30 �2.17 � L30 Best Quarter 2.94 3.82 4.64 3.82 5.22 4.57 5.22 4.57 Worst 4 Quarters 7.23 7.84 4.46 3.90 1.56 3.13 �0.46 �0.81 Best 4 Quarters 7.23 7.84 11.40 9.50 14.60 10.56 14.60 10.56 Standard Deviation 3.51 3.22 4.06 3.46 3.82 3.41 Beta 0.99 1.12 1.07 Alpha 0.27 �0.07 0.01 R-Squared 0.82 0.89 0.91 Sharpe Ratio 2.19 2.06 1.30 1.45 0.96 0.99 Treynor Ratio 7.75 4.75 3.42 Tracking Error 1.54 1.50 1.25 Information Ratio 0.67 0.19 0.24 I[�'ii�:�7 188 18.0 16.0 14.0 � 12.0 � a� 0 10.0 � � 8.0 � N 6.0 � � 4.0 2.0 0.0 -2.0 0.0 � � a� 0 � � a� � � N � � Attachment number 2 \nPage 1! City of Clearwater Return vs Risk Total Returns of Fixed Income Portfolios 3 Years Ending 12/31/11 10.9 10.0 9.2 83 7.4 6.5 5.6 4.7 3.8 2.9 2.0 0.0 2.0 4.0 w Western Asset Management Co. i BC Agg Median 6.0 8.0 10.0 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 7.85 50 6J7 65 7.87 5 Years Ending 12/31/11 12.0 14.0 Standard Deviation Value Rank 3.51 44 3.22 35 3.78 2.0 4.0 w Western Asset Management Co. [ BC Agg Median 6.0 8.0 10.0 Historical Standard Deviation of Return Annualized Net of Fee Return Value Rank 6J8 40 6.50 52 6.55 189 12.0 14.0 Standard Deviation Value Rank 4.06 49 3.46 31 4.23 ��11�:�� Attachment number 2 \nPage 1! City of Clearwater Fixed Income, Mortgage and Municipals Summary Statistics Western Asset Management Co. Quarter Ending 12/ 11 Total Number Of Securities Total Market Value Yield to Maturity Time to Maturity Current Coupon Duration Effective Convexity Effective Duration Effective Maturity 0- 1 1-2 2- 3 3- 4 4- 5 5+ Yield to Maturity GOVT 18. AAA 43. AA 5. A 14. BAA 15. BA 1. B 0. NR 1. Quality Portfolio 262 67,122,890 2.34 20.19 4.99 6.76 1.01 6.04 10.17 0- 1 2 1- 3 5 3- 5 8 5- 7 8 7 - 10 11 10+ 63 0-1 2 1-3 40 3-4 9 4-6 13 6-8 6 8+ 27 Time to Maturity Duration � BC Agg 7,829 2.24 7.13 4.01 5.18 -0.45 4.95 7.13 0- 3 9. 3 - 5 35. 5 - 7 49. 7- 9 4. 9 - 11 1. 11+ 0. 0 - 1 14. 1 - 3 33. 3 - 4 8. 4 - 6 12. 6- 8 5. 8+ 25. Coupon Effective Duration �Ei�'ii�:�•'� Attachment number 2 \nPage 1! City of Clearwater Percent Invested by Sector and Quality Western Asset Management Co. As of 12/31/11 Moody's Quality Ratings Name Aaa Aa A Baa Ba B Other NR Total Government 20.20 0.27 0.10 0.19 --- --- --- --- 20.76 Treasury 14.61 --- --- --- --- --- --- --- 14.61 Agency 5.59 0.27 0.10 0.19 --- --- --- --- 6.15 Corporate 0.17 4.16 14.25 15.14 0.61 0.28 --- 0.88 35.49 Industrial --- 1.28 6.36 9.67 0.45 --- --- 0.02 17.78 Utility --- --- 0.74 0.18 --- --- --- --- 0.92 Finance --- 2.88 6.83 4.73 0.16 0.28 --- 0.86 15.74 Yankee 0.17 --- 0.32 0.56 --- --- --- --- 1.05 Transportation --- 0.22 --- 0.23 --- --- --- --- 0.45 Mortgage 41.37 0.60 --- --- --- --- --- 0.72 42.69 GNMA 13.61 --- --- --- --- --- --- 0.41 14.02 FHLMC 7.01 --- --- --- --- --- --- --- 7.01 FNMA 18.82 --- --- --- --- --- --- --- 18.82 Other Mortgage 1.93 0.60 --- --- --- --- --- 0.31 2.84 Municipals --- --- --- --- --- --- --- --- --- Cash --- --- --- --- --- Other 0.15 --- --- --- 0.48 --- --- --- 0.63 Total 61.88 5.24 14.35 15.57 1.09 0.28 --- 1.60 100.00 I[�'ii�:�7 � Attachment number 2 \nPage 1! City of Clearwater Fixed Income Sector Attribution Analysis Western Asset Management Co. Quarter Ending 12/ 11 Weight Return Selection Portfolio Index Portfolio Index Securit Sector Total Finance 14.70 9.53 1.62 1.06 0.08 �0.02 0.07 Government 15.08 40.01 3.32 1.28 0.31 0.02 0.33 Industrials 15.18 10.07 2.49 2.04 0.07 0.04 0.10 Mortgage 52.14 36.55 1.82 1.33 0.25 �0.00 0.25 Transportation 0.30 0.36 0.74 1.42 �0.00 �0.00 �0.00 Utilities 0.98 1.60 5.68 2.55 0.03 �0.01 0.02 Municipals 0.00 0.00 0.00 1.�� �a.aa �a.aa �a.aa Foreign 0.97 1.85 2.51 0.25 0.02 0.01 0.03 Miscellaneous 0.65 0.02 1.18 0.00 �0.00 �0.00 100.00 100.00 2.15 1.35 0.76 0.04 0.80 Index - Wilshire GCM Index Security Selection Return Attribution [ Portfolio Market Value Sector Percentage ]*[ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ]*[ Index Sector Return - Index Total Return ] Trading Effect -0.46% [ Actual Return 1.69% ]-[ Buy Hold Return 2.15% ] � �[i�'ii�:�•7 Attachment number 2 \nPage 1! City of Clearwater Real Estate Comp as of 12/31 / 11 Portfolio Performance ("/o) 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 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 � Real Estate Comp � Policy Index Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 4/30/OS Real Estate Comp 9.65 8.85 8.85 20.99 0.04 Policy Index 1130 11.62 11.62 21.69 0.06 Asset Growth ($000) Beginning Market Value 62,471 62,823 62,823 27,416 19,347 Net Contributions & Withdrawals -1 110 110 -1,890 -1,890 Gain/Loss + Income 6,029 5,566 5,566 42,973 51,042 Ending Market Value 68,499 68,499 68,499 68,499 68,499 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Simon Ppty Group Inc Financials 8.70 Energy 0.00 Equity Residential P Financials 8.20 Materials 0.00 Hcp Inc Financials 7.69 Industrials 0.00 Prologis Inc Financials 6.66 Consumer Discretionary 1.67 Avalonbay Cmntys Inc Financials 5.67 Consumer Staples 0.00 Ventas Inc Financials 536 Health Care 0.00 General Growth Pptys Financials 5.05 Financials 9833 Host Marriott Corp N Financials 4.94 Information Technology 0.00 Sl Green Rlty Corp Financials 4.48 Telecom Services 0.00 Apartment Invt & Mgm Financials 4.48 Utilities 0.00 ��11�:�� 193 City of Clearwater Real Estate Comp as of 12/31 / 11 0.5 0 0.4 � 03 � � � 0.2 � � � 0.1 0.0 -5.0 0.0 Risk/Return Analysis Periods from 4/08 to 12/11 Alpha 0.05 Beta 1.00 R-Squared 0.99 R Real Estate Comp ;. Policy Index T 91-Day Treasury Bill 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio 0.04 37.58 -0.01 0.03 0.06 37.81 -0.01 0.40 0.21 0.00 194 Attachment number 2 \nPage 1! ��11�:�� 30% 25% 20% 15% 10% 5% �% -5% -1�% -15% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 1! City of Clearwater Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/11 Last Qtr 15.92 5.35 2.84 1.10 -5.30 R Real Estate Comp Net Ret 9.65 Rank 14 � Policy Index Net Ret 11.30 Rank 13 Last 2 Qtrs 12.11 6.48 4.88 -1.56 -13.27 -0.10 67 1.35 63 195 Last 3 Qtrs 18.83 12.03 9.41 1.98 -11.37 3.26 67 5.53 59 Last 4 Qtrs 24.97 16.67 12.52 5.59 -12.85 .. .; 11.62 54 I[�'ii�:�7 so°io 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 2i City of Clearwater Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December 2011 2010 2009 24.97 30.69 38.04 16.67 18.42 -3.23 12.52 13.91 -28.19 5.59 3.68 -31.21 -12.85 -23.52 -45.86 R Real Estate Comp Net Ret 8.85 Rank 62 � Policy Index Net Ret 11.62 Rank 54 30.51 5 24.96 12 � 24.68 14 29.20 11 I[�'ii�:�7 Attachment number 2 \nPage 2i City of Clearwater Risk Measure Summary Real Estate Comp Quarterly Periods Ending 12/31/11 1 Year 3 Years 5 Years Inception Risk Measures Portfolio Bench Portfolio Bench Portfolio Bench Portfolio Bench Negative Periods 1 1 3 3 4 4 Positive Periods 3 3 9 9 10 10 Up Market Capture 0.86 1.01 0.99 Down Market Capture 1.00 1.03 0.99 Batting Average 0.25 0.50 0.50 Worst Quarter ��.90 ��.94 �36.65 �33.�5 �37.93 �40.40 Best Quarter 9.65 11.30 33.98 35.93 33.98 35.93 Worst 4 Quarters 8.85 11.62 6.21 7.43 �45.85 �45.65 Best 4 Quarters 8.85 11.62 118.01 115.40 118.01 115.40 Standard Deviation 36.99 36.00 41.48 41.52 Beta 1.02 1.00 Alpha �0.17 0.05 R-Squared 0.99 0.99 Sharpe Ratio 0.56 0.60 0.08 0.07 Treynor Ratio 20.3 8 3.21 Tracking Error 3.39 3.54 Information Ratio �0.03 0.03 I[�'ii�:�7 197 30.0 23.5 17.0 � 10.5 � � 4.0 0 � � -2.5 � � -9.0 .� � �, -15.5 d -22.0 -28.5 -35.0 0.0 Attachment number 2 \nPage 2i City of Clearwater Return vs Risk Total Returns of Real Estate Portfolios 3 Years Ending 12/31 / 11 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 36.0 40.0 Historical Standard Deviation of Return Annualized Return Standard Deviation Value Rank Value Rank R Real Estate Comp 20.99 8 36.99 94 � Policy Index 21.69 7 36.00 93 Median -1.82 14.99 �[i�'ii�:�•7 198 Attachment number 2 \nPage 2i City of Clearwater Security Capital as of 12/31/11 Portfolio Performance ("/o) 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 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 4/30/08 � Securiry Capital �� Wilshire RESI Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 4/30/OS Securiry Capital 14.90 6.86 6.86 20.59 -0.24 Wilshire RESI 15.40 8.56 8.56 21.89 0.15 Asset Growth ($000) Beginning Market Value 36,928 41,879 41,879 27,416 19,347 Net Contributions & Withdrawals -457 -2,809 -2,809 -24,809 -24,809 Gain/Loss + Income 5,489 2,890 2,890 39,353 47,423 Ending Market Value 41,960 41,960 41,960 41,960 41,960 Top Equity Holdings GICS Sector Allocation GICS Sector % Port % Port Simon Ppty Group Inc Financials 8.70 Energy 0.00 Equity Residential P Financials 8.20 Materials 0.00 Hcp Inc Financials 7.69 Industrials 0.00 Prologis Inc Financials 6.66 Consumer Discretionary 1.67 Avalonbay Cmntys Inc Financials 5.67 Consumer Staples 0.00 Ventas Inc Financials 536 Health Care 0.00 General Growth Pptys Financials 5.05 Financials 9833 Host Marriott Corp N Financials 4.94 Information Technology 0.00 Sl Green Rlty Corp Financials 4.48 Telecom Services 0.00 Apartment Invt & Mgm Financials 4.48 Utilities 0.00 ��11�:�� � � � a� � � N � � � Attachment number 2 \nPage 2i City of Clearwater Security Capital as of 12/31/11 0.5 0.4 03 0.2 0.1 0.0 -0.1 -0.2 -03 -5.0 Risk/Return Analysis Periods from 4/08 to 12/11 Alpha Beta R-Squared -0.06 0.99 0.99 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio s Securiry Capital -0.24 38.79 -0.02 -011 ;. Wilshire RESI 015 3910 -0.01 T 91-Day Treasury Bill 0.40 0.21 0.00 ��11�:�� 200 30% 25% 20% 15% 10% 5% �% -5% -1�% -15% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 2i City of Clearwater Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/11 Last Qtr 15.92 5.35 2.84 1.10 -5.30 s Security Capital Net Ret 14.90 Rank 12 � Wilshire RESI Net Ret 15.40 Rank 6 Last Year 24.97 16.6� 12.52 5.59 -12.85 • :• 1 : • 201 Last 2 Years 22.78 17.16 13.44 5.96 -6.88 18.59 19 18.39 20 Last 3 Years 22.23 4.92 -1.82 -4.62 -13.68 20.59 9 21.89 7 I[�'ii�:�7 so°io 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 2i City of Clearwater Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December s Security Capital Net Ret Rank � Wilshire RESI Net Ret Rank 2011 2010 2009 24.97 30.69 38.04 16.67 18.42 -3.23 12.52 13.91 -28.19 5.59 3.68 -31.21 -12.85 -23.52 -45.86 • :• 1 . • 31.62 4 29.12 7 202 24.68 14 29.20 11 I[�'ii�:�7 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 City of Clearwater Multi Employer Property Trust as of 12/31/11 Portfolio Performance ("/o) Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/10 � Multi Employer Property Trust � NCREIF ODCE Attachment number 2 \nPage 2i Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 9/30/10 Multi Employer Property Trust 2.50 12.99 12.99 14.41 NCREIF ODCE 2.97 15.99 15.99 17.07 Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 23,087 20,944 20,944 0 0 0 577 2,721 2,721 23,665 23,665 23,665 203 0 20,000 3,665 23,665 ��11�:�� Attachment number 2 \nPage 2i City of Clearwater Multi Employer Property Trust as of 12/31/11 � � � � N � � � 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0 0.0 Risk/Return Analysis (Number of returns < 12) Periods from 9/10 to 12/11 Alpha Beta R-Squared N/A N/A N/A 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio M Multi Employer Property 14.41 1.62 8.85 ;. NCREIF ODCE 17.07 1.63 10.41 T 91-Day Treasury Bill 011 0.04 0.00 ��11�:�� 204 30% 25% 20% 15% 10% 5% �% -5% -1�% -15% High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 2i City of Clearwater Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/11 Last Qtr 15.92 5.35 2.84 1.10 -5.30 M Multi Employer Property Trust Net Ret 2.50 Rank 62 � NCREIF ODCE Fund Index Net Ret 2.97 Rank 48 Last 2 Qtrs 12.11 6.48 4.88 -1.56 -13.27 :• . 6.59 24 205 Last 3 Qtrs 18.83 12.03 9.41 1.98 -11.37 9.51 46 11.52 28 Last 4 Qtrs 24.97 16.67 12.52 5.59 -12.85 12.99 46 15.99 26 I[�'ii�:�7 30% 25% 20% 15% 10% 5% �% -5% -1�% -15% 2011 Attachment number 2 \nPage 2 City of Clearwater Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December High 24.97 1 st Qt 16.67 Median 12.52 3rd Qt 5.59 Low -12.85 M Multi Employer Property Trust Net Ret 12.99 Rank 46 � NCREIF ODCE Fund Index Net Ret 15.99 Rank 26 206 I[�'ii�:�7 0.6 0.4 0.2 0.0 -0.2 -0.4 -0.6 -0.8 -1.0 -1.2 -1.4 -1.6 -1.8 -2.0 -2.2 City of Clearwater Molpus Woodlands Group as of 12/31 / 11 Portfolio Performance ("/o) Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/11 Attachment number 2 \nPage 2 � Molpus Woodlands Group NCREIF Timberland Index Incept Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 6/30/11 Molpus Woodlands Group -135 -2.03 NCREIF Timberland Index 0.51 016 Asset Growth ($000) Beginning Market Value 2,455 111 Net Contributions & Withdrawals 456 2,808 Gain/Loss + Income -37 -45 Ending Market Value 2,874 2,874 ��11�:�� 207 Attachment number 2 \nPage 2 City of Clearwater Molpus Woodlands Group as of 12/31 / 11 � � a� � � N � � 0.4 0.2 0.0 -0.2 -0.4 -0.6 -0.8 -1.0 -1.2 -1.4 -1.6 -1.8 -2.0 -2.2 0.0 Risk/Return Analysis (Number of returns < 12) Periods from 6/11 to 12/11 Alpha Beta R-Squared N/A N/A N/A 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 Annualized Standard Deviation% Annualized Std. Sharpe Info Net Ret Dev. Ratio Ratio M Molpus Woodlands Group -2.03 1.96 -1.04 ;. NCREIF Timberland Index 016 0.95 015 T 91-Day Treasury Bill 0.02 0.03 0.00 ��11�:�� 208 2o°io Is�io 1 o�io s�io o�io -s�io -lo�io -IS�io High 1 st Qt Median 3rd Qt Low Attachment number 2 \nPage 2 City of Clearwater Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/11 Last Last 2 Qtr Qtrs 15.92 12.11 5.35 6.48 2.84 4.88 1.10 -1.56 -530 -13.27 M Molpus Woodlands Group Net Ret -1.35 Rank 90 � NCREIF Timberland Index Net Ret 0.51 Rank 81 -2.03 79 0.16 67 209 I[�'ii�:�7 Attachment number 2 \nPage 2 ��11�:�� 210 Attachment number 2 \nPage 2 City of Clearwater Employees Pension Fund Appendix Dow Jones Industrial Average: This index is comprised of 30 "blue-chip" US stocks selected for their history of 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 a price-weighted arithmetic average, with the divisor adjusted to reflect stock splits and the occasional stock switches in the index. NASDAQ Composite: A cap-weighted index comprised of all common stocks listed on the NASDAQ Stock Market (National Association of Securities Dealers Automated Quote system). S&P 500: A broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. This index does not contain the SOO largest companies or the most expensive stocks traded in the US. While many of the stocks are among the largest, this index also includes many relatively small companies. This index consists of approximately 380 industrial, 40 utility, 10 transportation, and 70 financial companies listed on the US market exchanges. It is a capitalization-weighted index (stock price times number of shares outstanding), calculated on a total return basis with dividend reinvested. Russell 1000: The 10001argest companies in the Russell 3000 index, based on market capitalization. Russell 1000 Growth: A segment of the Russell 1000 with a greater-than-average growth orientation. Companies in this index have higher price-to-book and price-to-earnings ratios, lower dividend yields and higher forecasted growth values than the Russell 1000 Growth index. Russell 1000 Value: Represents a segment ofthe Russell 1000 with a less-than-average growth orientation. Companies in this index have low price-to book and price-to-earnings ratios, higher dividend yields and lower forecasted growth values than the Russell 1000 Growth index. Russell Mid-Cap: This index consists of the bottom 800 securities in the Russell 1000 as ranked by total market capitalization, and represents over 35% of the Russell 1000 total market cap. Russell Mid-Cap Growth: The Russell Mid-cap Growth Index offers investors access to the mid-cap growth segment of the U.S. equity universe. The Russell Midcap Growth Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap growth market. Based on ongoing empirical research of investment manager behavior, the methodology used to determine growth probability approximates the aggregate mid-cap growth manager's opportunity set. Russell Mid-Cap Value: Measures the performance of the Russe113000 Index e�tended to include micro-cap securities of the Russell Micro-cap Index. The index represents approximately 99% of the U. S. Equity Market. As of the latest reconstitution, the average market capitalization was appro�mately $3.8 billion; the median market capitalization was appro�mately $612 million. The index had a total market capitalization range of approximately $368.5 billion to $673 million. Russe112000: the 2000 smallest companies in the Russe113000 index. Russe112000 Growth: A segment of the Russe112000 with a greater-than-average growth orientation. Companies in this index have higher price-to book and price-to-earnings ratios, lower dividend yields and higher forecasted growth values than the Russe112000 Value index. I[�'ii�:�7 211 Attachment number 2 \nPage 2 City of Clearwater Employees Pension Fund Appendix Russe112000 Value: A segment of the Russe112000 with a less-than-average growth orientation. Companies in this index have low price-to-book and price-to-earnings ratios, higher dividend yields and lower forecasted growth values than the Russe112000 Growth index. Russe112500: This index consists of the bottom 500 stocks in the Russell 1000 (as ranked by market capitalization) and all of the stocks in the Russe112000. This index is intended to be used as a measure of small to medium/small stock performance. Russe112500 Growth: A segment of the Russe112500 with a greater-than-average growth orientation. Companies in this index have higher price-to book and price-to-earnings ratios, lower dividend yields and higher forecasted growth values than the Russe112500 Value index. Russe112500 Value: A segment of the Russe112500 with a less-than-average growth orientation. Companies in this index have low price-to-book and price-to-earnings ratios, higher dividend yields and lower forecasted growth values than the Russe112500 Growth index. Russell 3000: is composed of the 3,000 largest U.S. securities, as determined by total market capitalization. Russell 3000 Growth: This index measures the performance of those Russe113000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russe112000 Growth indexes. Russell 3000 Value: This index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000Value or the Russe112000 Value indexes. MSCI EAFE: A market capitalization-weighted index representing all of the MSCI developed markets outside North 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 of which are created separately. MSCI World: A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of June 2007 the MSCI World Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. MSCI World ex U.S.: The MSCI World index excluding the U.S. portion ofthe index. MSCI All Country World Index: a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. As of January 2009 the MSCI ACWI consisted of 46 country indices comprising 23 developed and 23 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The emerging market country indices included are: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, I[�'ii�:�7 212 Attachment number 2 \nPage 2 City of Clearwater Employees Pension Fund Appendix MSCI All Country World Index ex U.S.: The MSCI All Country World Index excluding the U.S. portion ofthe index. MSCI Emerging Markets Free (EMF): A market capitalization-weighted index representing 2 of the emerging 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 of which are created separately. Barclays Capital U.S. Aggregate Bond: This index is made up ofthe Barclays Capital U.S. GovernmenUCredit, the Mortgage-Backed Securities, and the Asset-Backed Securities indices. All issues in the index are rated investment grade or higher, have at least on year maturity, and have an outstanding par value of at least $100 million. Barclays Capital U.S. Government/Credit: This index includes all bonds that are in the Barclays Capital U.S. Government Bond and the Barclays Capital U.S. Credit Bond indices. Barclays Capital U.S. Government/Credit Intermediate: All bonds by the Barclays Capital U.S. Government/Credit Bond index with maturities of 1 to 10 years. Barclays Capital Municipal Bond: This market capitalization-weighted index includes investment grade tax-exempt bonds and is 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. Barclays Capital U.S. Treasury Index: This index includes public obligations ofthe U.S. Treasury. Treasury bills are excluded by the maturity constraint, but are part of a separate Short Treasury Index. In addition, certain special issues, such as state and local government series bonds (SLGs), as well as U.S. Treasury TIPS, are excluded. STRIPS are excluded from the index because their inclusion would result in double-counting. Securities in the Index roll up to the U.S. Aggregate, U.S. Universal and Global Aggregate Indices. Barclays Capital U.S. TIPS: This index measures the performance of U.S. Treasury Inflation Protection Securities. Merrill Lynch Convertibles: The convertible securities used in this index span all corporate sectors and must have a par amount outstanding of $25 million or more. The maturity must be at least on year. The coupon range must be equal to or greater than zero and all equity of bonds are included. Excluded from this index are preferred equity redemption stocks. When the component bonds of this index convert into common stock, the converted securities are dropped from the index. Merrill Lynch Corp/Govt 1-3 Years A or Better: An unmanaged index of government and corporate fixed-rate debt issues with maturities between one and 3 years. Merrill Lynch High Yield Master: Market capitalization weighted index providing a broad-based measure of bonds in the US domestic bond market rated below investment grade, but not in default. Includes only issues with a credit rating of BB 1 or below as rated by Moody's and/or S&P, at least $100 million in face value outstanding and a remaining term to final maturity equal to or greater than one year. Dow Wilshire REIT: A measurement of equity REITs and Real Estate operating Companies. No special-purpose or health care REITs are included. It is a market capitalization weighted index for which returns are calculated monthly I[�'ii�:�7 213 Attachment number 2 \nPage 2 City of Clearwater Employees Pension Fund Appendix Alpha: A risk-adjusted measure of 'excess return' on an investment. That is, it measures an active manager's performance in excess of a benchmark index or'risk-free' investment. An alpha of 1.0 means the manager outperformed the market 1.0%. A positive alpha is the extra return awarded to the investor for taking additional risk rather than accepting the market return. Batting Average: The percent of periods the manager has beaten the benchmark. A high average for the fund (e.g. over 50) is desirable, indicating the fund has beaten the policy frequently. Beta: A measure of systematic risk, or the sensitivity of a manager to movements in the benchmark. A beta of 1 implies that you can expect the movement of a manager's return series to match that of the benchmark used to measure beta. Down Market Capture Ratio: A measure of a manager's performance in down markets. A down-market is defined as those periods (months or quarters) in which market return is less than 0. It tells you what percentage of the down-market was captured by the manager. Information Ratio: The Information Ratio measures the consistency with which a manager beats a benchmark. R-squared: The R-Squared (R2) of a manager versus a benchmark is a measure of how closely related the variance of the manager returns and the variance of the benchmark returns are. Sharpe Ratio: The Sharpe Ratio is a risk-adjusted measure of return which uses standard deviation to represent risk It is calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. Standard Deviation: Standard deviation of return measures the average deviations of a return series from its mean, and is often used as a measure of risk. A large standard deviation implies that there have been large swings in the return series of the manager. Tracking Error: A divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. Treynor Ratio: The Treynor Ratio is a risk-adjusted measure of return which uses beta to represent risk It is calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the portfolio's beta value. Up Market Capture Ratio: A measure of a manager's performance in up markets. An up-market is defined as those periods (months or quarters) in which market return is greater than 0. It tells you what percentage of the up-market was captured by the manager. I[�'ii�:�7 214 Attachment number 2 \nPage 2 City of Clearwater Employees Pension Fund Appendix Disclaimer Page This material is for information only and for the use of the recipient. It is not to be reproduced or copied or made available to others. Any opinions expressed are our current opinions only. Assumptions, opinions and estimates constitute CapTrust's judgment as of the date of this material and are subject to change without notice. While the information contained herein is from sources believed reliable, we do not represent that it is accurate or complete and it should not be relied upon as such. CapTrust accepts no liability for loss arising from the use of this material. Performance Comparison Page Information: Shaded Areas represent where the investment objective was achieved either by: 1)The investment return vs the index; 2)The investment return universe ranking (the lower the number the better the ranking) Manager performance begins on the last day of the inception month. Any investment results depicted represent historical net performance. Past performance is no guarantee of future performance. 215 I[�'ii�:�7