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South Carolina Firefighter’s Retirement Plan Investment UpdateRetirement Plan – Investment Update

August 2 2011August 2, 2011

abacusplanninggroup.com

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Introduction and overview

Agenda

Introduction and overview

Plan performance and feesp

Economic and market outlook

Questions and answers

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Portfolio performanceDecember 31, 2010 – June 30, 2011

3.60%3.40%

3 00%

4.00%

1.50%2.00%

3.00%

50

1.00%

0.00%

Conservative Growth Moderate Growth Growth

* All returns are net of fees

For more performance information please visit www.scfirefighters.com


Portfolio performanceDecember 31, 2010 to June 30, 2011

P tf li O ti N t R tPortfolio Option Net Return

Moderate Growth 3.60%

Moderate Growth Benchmark 4.06%

Conservative Growth** 1.50%

C i G h B h k 2 02%Conservative Growth Benchmark 2.02%

Growth 3.40%

Growth Benchmark 3.79%

•Benchmarks are a fixed weight blend consisting of global stock (as measured by a mix of the S&P 500 Total Return and MSCI EAFE Index) and fixed income (as measured by the Citigroup 1-3 Year TreasuryTotal Return and MSCI EAFE Index) and fixed income (as measured by the Citigroup 1-3 Year Treasury Index ** Conservative Growth inception is 1/31/11


Portfolio performanceJune 30, 2010– June 30, 2011

31.51%

30.00%

35.00%

19.39%

15 00%

20.00%

25.00%

5.00%

10.00%

15.00%

0.00%

Conservative Growth Moderate Growth Growth

* All returns are net of fees

For more performance information please visit www.scfirefighters.com


Q fQuick facts

141 participating departments141 participating departments

~ 8,628 participants

In 2010 there were 578 withdrawals totaling $1,944,108.86

In 2010 there were 140 deposits totaling $3 381 618 28In 2010 there were 140 deposits totaling $3,381,618.28

Current portfolio value $36, 749,376 (6/30/2011)

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FeesJune 30, 2010 – June 30, 2011

Advisor Fee % of total plan assets

Abacus Planning Group $111,000 0.32%

Underlying managers $174,665.45 0.50%

Nexsen Pruet $11,532.63 0.03%

Toledano and Associates $330,542.39 0.95%

T t l f $602 529 66 1 80%Total fees $602,529.66 1.80%

7Underlying manager expense and fee as a percent of total plan assets are based on 12/31/2010 portfolio values


SCFA RETIREMENT PLAN

Sample Investment FeesPortfolio Value as of 6/30/11$34,816,776.08

Annual AnnualWeight in Portfolio Investment Ticker Amount Trading Fee Expense Ratio Expense Ratio $

11.5% DFA US LARGE COMPANY DFUSX $4,001,032.60 $25.00 0.10% $4,001.03

3.0% DFA US LARGE VALUE DFLVX $1,048,352.22 $25.00 0.28% $2,935.39

4.8% DFA US MICRO CAP DFSCX $1,654,245.21 $25.00 0.52% $8,602.08

3.9% ROYCE MICRO CAP INV CLASS RYOTX $1,369,659.58 $25.00 1.50% $20,544.89

3.6% DFA INTERNATIONAL LARGE COMPANY DFALX $1,239,498.11 $25.00 0.30% $3,718.49

4.7% ARTISAN INTERNATIONAL ARTIX $1,619,172.30 waived 1.23% $19,915.82

4.6% HARBOR INTERNATIONAL HAINX $1,600,043.99 $25.00 0.79% $12,640.35

5.1% DFA INTERNATIONAL SMALL COMPANY DFISX $1,789,287.40 $25.00 0.56% $10,020.01

4.2% DFA EMERGING MARKETS DFEMX $1,455,748.67 $25.00 0.60% $8,734.49

24.3% INDIVIDUAL BONDS $8,457,419.08 $25/bond N/A $0.00

4.4% PIMCO DIVERSIFIED INCOME INST CLASS PDIIX $1,534,264.88 $25.00 0.75% $11,506.99

$ $ $4.1% PIMCO TOTAL RETURN PTTRX $1,440,796.03 $25.00 0.46% $6,627.66

3.4% DFA INTERNATIONAL REAL ESTATE DFITX $1,180,051.36 $25.00 0.41% $4,838.21

3.1% DFA REAL ESTATE SECURITIES DFREX $1,062,957.44 $25.00 0.33% $3,507.76

2.8% PIMCO COMMODITY REAL RETURN INST CLASS PCRIX $976,492.21 $25.00 0.74% $7,226.04

2.9% VAN ECK GLOBAL HARD ASSETS GHAIX $1,026,518.08 $25.00 1.00% $10,265.18

2 0% GATEWAY FUND GATEX $706 404 94 waived 0 94% $6 640 212.0% GATEWAY FUND GATEX $706,404.94 waived 0.94% $6,640.21

1.8% MERGER FUND MERFX $623,121.31 waived 1.59% $9,907.63

2.3% CALAMOS CONVERTIBLE GRW AND INCOME CVTRX $783,789.55 waived 1.13% $8,856.82

1.9% CALAMOS MARKET NEUTRAL CVSIX $670,767.19 waived 1.21% $8,116.28

1.7% HUSSMAN STRATEGIC GROWTH HSGFX $577,153.93 $25.00 1.05% $6,060.12

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Total Mutual Fund Expense $300 to $800 $174,665.45 0.50%Abacus Planning Fee Expense $111,000.00 0.32%Total Fee $285,665.45 0.82%


What helped and what hurt portfolio returnsDecember 31, 2010 – June 30, 2011

US Large Company Value Stocks

What helped returns

US and International Real Estate Securities

Rebalancing

United States Treasury Bonds

What hurt returns

y

Equity hedging strategies

9

Emerging Markets

abacus smart financial decisionsabacus smart financial decisions

Rebalancing portfolio investments


fThinking about the future

Wh t i t i ht i fl ti h thWhat impact might inflation have on the portfolio?

What are the headwinds we are facing?

What are the opportunities for the portfolio?

11


Topic 2Components of the consumer price index (CPI)

12


Topic 2

13


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US Stock Flows and market performance

US Stock fund flows and market performance

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Provide portfolio growth while minimizing associated risk

Our goals in working with the Firefighters’ Plan

Provide portfolio growth while minimizing associated risk

Provide clear, comprehensive reporting to the Plan trustees and participants on a regular basisand participants on a regular basis

Minimize investment expenses

Work closely with the Plan’s Third Party Administrator, Toledano and Associates, to ensure timely and accurate service and reporting to individual participantsp g p p

Communicate effectively with plan participants regarding the mechanics of the plan, performance of the investments, and other financial planning topics that may be of interest

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South Carolina State Firefighters’ Association Plan Sponsor

Advisors and partners

South Carolina State Firefighters Association – Plan Sponsor

Toledano and Associates – Third Party Administrators

Abacus Planning Group, Inc. – Registered Investment Advisor

Charles Schwab and Company, Inc. – Custodian

Joel Stoudenmire – ERISA attorney


http://www.scfirefighters.org

Website

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We at Abacus feel truly honored to have the opportunity of working with the South Carolina Firefighters’ Association the Trustees and theFirefighters Association, the Trustees and the participants and look forward to continuing to serve each of you.serve each of you.

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