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Transcript of FORT PIERCE POLICE OFFICERS' RETIREMENT FUND … Funds/Select Your Fund/Fort Pierce... · FORT...

  • FORT PIERCE POLICE OFFICERS' RETIREMENT FUND

    INVESTMENT PERFORMANCEPERIOD ENDING

    JUNE 30, 2013

    315 East Robinson Street, Orlando, Florida 32801, 407-644-0111, [email protected] recent Form ADV which details pertinent businesss procedures, please contact:

    NOTE: For a free copy of Part II (mailed w/i 5 bus. days from request receipt) of Burgess Chambers and Associates, Inc.'s

  • Fort Pierce Police Officers Retirement Fund

    BCA Market Perspective

    Why Are Bonds A Risk?

    July 2013

    Since the sudden drop in bond prices in June, investors have been reminded of interest rate risk. While we are continually focused on default risk, it is Feds zero interest rate policy in its fifth year that has investors worried. A shift by the Fed towards allowing interest rates to rise will push down the value of bonds. There are two major types of risk in the bond market. One is the risk that the bond issuer will default on the bond. Selecting higher quality bonds with limited exposure to each issue and/or hiring a professional bond manager with a focus on quality will significantly reduce the risk of a default in your portfolio. The second major risk is interest rate risk specifically the price depreciation of a bond during a rising interest rate environment. As interest rates rise, the price (or market value) of a bond will decline. Lets consider a simple example: Assume you own a fixed coupon bond that pays 3% interest each year. If the market moves the yield of this bond to 6%, its price will have dropped by 50%. As an individual investor, you may not be concerned that your bond has declined in value. You will continue to receive the 3% coupon every year and your money (or par value) back at maturity. However, pension funds, endowments and foundations are required to report the bonds at their current market value. The threat of a rising interest rate environment from the current historical lows is the reason many investors view the asset class as risky. Many believe there is a high probability that the market value decline of bonds will be more than the interest received if rates begin to rise, resulting in a negative total return for the bond portion of your portfolio. BCA has discussed the risk associated with bonds with its clients for the past two years and has offered several solutions. Shortening the maturities (or the duration) of the portfolio is one way to lessen the impact of rising rates as bonds closer to maturity have less sensitivity to interest rate movements. Other alternatives to consider include floating rate bonds which reset the coupon based on a spread above a predetermined index. However, each strategy or asset class has its own individual risk characteristics and should be monitored closely to ensure they are meeting your specific objectives.

    1

  • Fort Pierce Police Officers Retirement Fund Total Fund

    Investment Summary June 30, 2013

    Three years ago, BCA reported the Retirement Funds top 3rd percentile rankings for the two and three-year periods, ended June 30, 2010. The strategy

    then and remains to be more conservative than the market-based benchmark. During the 2008-2009 bear market, performance ranked well because of the asset allocation and the types of managers retained. Todays market has much speculation and too much liquidity driven by Federal Reserve policies. While recent performance has trailed the benchmark, the three-year average return of +10.4% (+9.7% net) was well above the actuarial assumed investment return (+7.5%). In fact, the five-year average remains in the top 21st percentile.

    For the quarter, the Fund had an investment loss of $14,672 or -0.1% net, but ranked in the top 47th percentile. The three best performing asset categories were large-cap (+4.4%), mid-cap (+2.4%), and small-cap (+2.4%). The main detractor in relation to the benchmark was WHV international, which was impacted by falling commodity prices.

    Fiscal YTD, the Fund earned $610K or +6.4%. The top three asset categories were: mid-cap (+18.9%), small-cap (+14.6%), and convertibles (+11.7%).

    For the 12-month period, the Fund earned $989K or +10.7% net, ahead of the actuarial assumption rate (+7.5%). The three best performing asset categories were mid-cap (+25.1%), large-cap (+19.6%), and small-cap (+19.5%).

    For the three-year period, the Fund earned $2.5 million or +9.7% net per year, ahead of the actuarial assumption rate (+7.5%).

    The investment related cash was $163,042 on June 30, 2013. Of this amount, CSMs portion was $131,928 and the remaining $31,114 represents dividends from the SPDR Barclays convertible ETF.

    Manager Review Large-cap core: CSM large-cap core equity results were ahead of the benchmark for the quarter (+4.4% vs. +2.7%). The firms allocation to this product

    was recently scaled back by to fund the iShares S&P 500 ETF, following it being placed on the BCA watch list.

    The Vanguard mid-cap portfolio (a passive product) has closely tracked the underlying index for the three and five-year periods. CSM Small-cap core: This product missed its benchmark for quarter (+2.5% vs. +3.1%), while the five-year average remains close (8.5% vs. +8.8%).

    Since the product is expected to out-perform during a rising interest rate environment, BCA recommends no action.

    The Vanguard REIT products (passive) three and five-year performance were in line with the underlying index, and the rankings were well above the 40th percentile objective for both periods.

    CSMs fixed-income product has achieved superior results for the three and five-year periods; beating the benchmark and ranking in the 41st and 36th

    percentiles, respectively.

    2

  • Fort Pierce Police Officers Retirement Fund Total Fund

    Investment Performance June 30, 2013

    Dollars

    Quarter Fiscal YTD One Year

    Beginning Market Value 10,331,710 9,813,927 9,488,461

    Ending Market Value 10,247,021 10,247,021 10,247,021

    Net Contributions -70,017 -176,980 -230,815

    Investment Gain/(Loss) -14,672 +610,074 +989,375

    Investment Return, Net -0.1% +6.4% +10.7%

    Strategic Model +0.1% +8.2% +12.7%

    Value Added (pts.) -0.2 -1.8 -2.0

    Fiscal Year: October 1st September 30th

    3

  • Fort Pierce Police Officers Retirement Fund Total Fund

    Investment Policy Review June 30, 2013

    Yes No The total Funds annualized three-year performance achieved the 7.5% actuarial assumption rate. The total Funds annualized three-year performance achieved the Strategic Model. The total Funds annualized three-year performance ranked in the top 40th percentile of the universe. The total Funds annualized four-year performance achieved the 7.5% actuarial assumption rate. The total Funds annualized five-year performance achieved the 7.5% actuarial assumption rate. The total Funds annualized five-year performance achieved the Strategic Model. The total Funds annualized five-year performance ranked in the top 40th percentile of the universe. C.S. McKee large cap annualized three-year performance achieved the benchmark. C.S. McKee large cap annualized three-year performance ranked in the top 40th percentile of the universe. C.S. McKee large cap annualized five-year performance achieved the benchmark. C.S. McKee large cap annualized five-year performance ranked in the top 40th percentile of the universe. C.S. McKee small cap annualized three-year performance achieved the benchmark. C.S. McKee small cap annualized three-year performance ranked in the top 40th percentile of the universe. C.S. McKee small cap annualized five-year performance achieved the benchmark. C.S. McKee small cap annualized five-year performance ranked in the top 40th percentile of the universe.

    4

  • Fort Pierce Police Officers Retirement Fund Total Fund

    Investment Policy Review (Continued) June 30, 2013

    Yes No Vanguard REIT annualized three-year performance achieved the benchmark. Vanguard REIT annualized three-year performance ranked in the top 40th percentile of the universe. Vanguard REIT annualized five-year performance achieved the benchmark. Vanguard REIT annualized five-year performance ranked in the top 40th percentile of the universe. C.S. McKee fixed income annualized three-year performance achieved the benchmark. C.S. McKee fixed income annualized three-year performance ranked in the top 40th percentile of the universe. C.S. McKee fixed income annualized five-year performance achieved the benchmark. C.S. McKee fixed income annualized five-year performance ranked in the top 40th percentile of the universe. PFIA Compliant The equity allocation (included REIT and convertibles) was 62.0% (at market), which is within the 70% at market. No more than 5% of the Funds assets (at cost) were invested in common or capital stock of one issuing company. No more than 20% of the Funds assets (at market) were invested in foreign securities (14.8%). All fixed income securities were within the top four ratings.

    5

  • MARKET VALUE PERCENT MARKET VALUE PERCENT MARKET VALUE PERCENTACTUAL ACTUAL TARGET TARGET DIFFERENCE DIFFERENCE

    LARGE CAP CORE 1,303,379.4 12.7% 1,537,053.1 15.0% (233,673.7) (2.3%)MID CAP CORE 1,330,427.1 13.0% 1,229,642.5 12.0% 100,784.6 1.0%SMALL CAP 846,807.1 8.3% 819,761.7 8.0% 27,045.5 0.3%CONVERTIBLE 997,260.9 9.7% 1,024,702.1 10.0% (27,441.2) (0.3%)INTERNATIONAL 1,466,066.1 14.3% 1,537,053.1 15.0% (70,987.1) (0.7%)REIT 407,243.3 4.0% 512,351.0 5.0% (105,107.7) (1.0%)FIXED INCOME 3,732,795.1 36.4% 3,535,222.2 34.5% 197,572.9 1.9%CASH 163,041.9 1.6% 51,235.1 0.5% 111,806.8 1.1%TOTAL FUND $10,247,020.9 100.0% $10,247,020.9 100.0% $0.0 0.0%

    ACTUAL ASSET ALLOCATIONFIXED INCOME

    36.43%

    CASH 1.59%

    INTERNATIONAL14.31%

    REIT 3.97%

    MID CAP CORE12.98%

    SMALL CAP 8.26%

    LARGE CAP CORE12.72%

    CONVERTIBLE9.73%

    TARGET ASSET ALLOCATION

    FIXED INCOME34.50%CASH 0.50%

    INTERNATIONAL15.00%

    REIT 5.00%

    MID CAP CORE12.00%

    SMALL CAP 8.00%LARGE CAP CORE

    15.00%

    CONVERTIBLE10.00%

    Fort Pierce Police Officers' Retirement FundTotal Fund

    Actual vs. Target Asset AllocationJune 30, 2013

    6

  • TOTAL MARKET VALUEAS OF JUNE 30, 2013

    $ 10,247,021

    CS MCKEE LARGECAP CORE

    SUNTRUST CASH

    VANGUARD MID-CAP

    CS MCKEE CASHSPDR BARCLAYS CAP CONVERTIBLES

    VANGUARD REIT

    AMER FDS EUROPACIFIC GR (INT'L)

    WHV INTERNATIONAL

    CS MCKEE SMALL CAP

    ISHARES S&P500 (LC) ETF

    CS MCKEE FIXEDINCOME

    VALUE PERCENT CS MCKEE FIXED INCOME 3,732,795 36.43 VANGUARD MID-CAP 1,330,427 12.98 SPDR BARCLAYS CAP CONVERTIBLES 997,261 9.73 AMER FDS EUROPACIFIC GR (INT'L) 990,233 9.66 CS MCKEE SMALL CAP 846,807 8.26 CS MCKEE LARGE CAP CORE 657,596 6.42 ISHARES S&P 500 (LC) ETF 645,784 6.30 WHV INTERNATIONAL 475,833 4.64 VANGUARD REIT 407,243 3.97 CS MCKEE CASH 131,928 1.29 SUNTRUST CASH 31,114 0.32

    Fort Pierce Police Officers' Retirement FundTotal Fund

    Asset Allocation

    7

  • Allo

    catio

    n Pe

    rcen

    t

    50.00

    45.00

    40.00

    35.00

    30.00

    25.00

    20.00

    15.00

    10.00

    5.00

    0.00

    QUARTER TO DATE 1 YEAR 2 YEARS 3 YEARS 4 YEARS 5 YEARS DOMESTIC EQUITY 33.97 32.18 36.15 43.05 38.01 44.33 CONVERTIBLE 9.73 9.79 9.52 N/A N/A N/A INTERNATIONAL 14.31 14.88 15.09 13.88 7.53 8.67 REAL ESTATE 3.97 5.55 N/A N/A N/A N/A FIXED INCOME 36.43 36.97 31.27 39.63 49.66 40.22 CASH 1.59 0.63 2.64 0.18 2.51 3.30

    Fort Pierce Police Officers' Retirement FundTotal Fund

    Asset DistributionJune 30, 2013

    8

  • QTD FYTD 1 Year 2 Year 3 Year 5 YearName Market Values ROR ROR ROR ROR ROR ROR

    CS McKee Large Cap Core 657,596 4.4% 11.5% 19.6% 11.4% 17.3% 6.7%iShares S&P 500 (LC) ETF 645,784 N/A N/A N/A N/A N/A N/AVanguard Mid-Cap 1,330,427 2.4% 18.9% 25.1% 10.4% 19.1% 7.9%CS McKee Small Cap 846,807 2.4% 14.6% 19.5% 5.3% 14.6% 8.5%

    SPDR Barclays Cap Convertibles 997,261 1.6% 11.7% 18.8% 6.5% N/A N/A

    Amer Fds EuroPacific Gr (Int'l) 990,233 -0.6% 8.4% 16.5% N/A N/A N/AWHV International 475,833 -3.7% 4.5% 11.5% N/A N/A N/ATotal International 1,466,066 -1.6% 7.1% 14.8% -1.5% 7.7% 0.0%Vanguard REIT 407,243 -1.6% 9.0% 9.1% 11.2% 18.4% 8.3%

    Total Equity 6,351,184 1.2% 12.0% 18.3% 6.4% 14.1% 5.3%CS McKee Fixed Income 3,732,795 -2.1% -1.4% 0.4% 4.5% 4.5% 6.2%

    CS McKee Cash 131,928 0.0% 0.1% 0.1% 0.3% 0.3% 0.6%SunTrust Cash 31,114 0.0% 0.1% 0.1% 0.1% N/A N/ATotal Cash 163,042 0.0% 0.1% 0.1% 0.2% 0.2% 0.6%

    TOTAL: (1, 2, 3) 10,247,021 0.0% 6.8% 11.3% 5.6% 10.4% 6.0%Strategic Model 0.1% 8.2% 12.7% 6.9% 12.0% 6.4%60% S&P500/40% BCAG 0.8% 7.0% 11.8% 9.4% 12.7% 7.2%Lg Cap Core Bnch 2.7% 14.0% 21.2% 12.5% 18.6% 7.1%Russell 1000 Index 2.7% 14.0% 21.2% 12.5% 18.6% 7.1%S&P 500 Index 2.9% 13.4% 20.6% 12.8% 18.5% 7.0%Russell Midcap 2.2% 18.8% 25.4% 11.1% 19.5% 8.3%Russell 2000 3.1% 18.0% 24.2% 10.3% 18.7% 8.8%ML Cnv x144A AllQual 1.6% 12.0% 17.7% 6.6% 11.4% 6.7%MSCI Gross EAFE -0.7% 11.4% 19.1% 1.6% 10.6% -0.2%Wilshire REIT -1.4% 8.6% 8.4% 10.8% 18.5% 7.2%Fixed Income Bnch -2.3% -2.2% -0.7% 3.3% 3.5% 5.1%

    1 Strategic Model (IPS hybrid benchmark objective): from Apr'11 is 15% R1000 + 12% RMC + 8% R2000 + 10% ML Conv All Qual x144A + 15% EAFE + 5% Wilshire REIT + 34.5% Barclays Agg 0.5% ML 3M T-Bills; Nov'09 25% R1000 + 12% RMC + 8% R2000 + 15%EAFE + 5% Wilshire REIT + 35% Barclays Agg; Apr'06 24% R1000 + 10% RMC + 10% R2000 + 8% EAFE + 8% Wilshire REIT + 40% LIAG; Oct'0350% S&P500 + 10%EAFE + 40% LIG/C; Jun'02 was 60% S&P500 + 40% LG/C.

    2 Lg Cap Core Bnch: from Apr'06100% Russell 1000; Jun'02 100% S&P 500.

    3 Fixed Income Bnch: from Nov'09 100% Barclays Agg; Apr'06 100% LIAG; Oct'03 100% LG/C; Jun'02 was 100% LG/C.

    Fort Pierce Police Officers' Retirement FundTotal Fund

    June 30, 2013Gross of Fees

    9

  • RATE

    OF

    RETU

    RN (%

    )

    17.0016.0015.0014.0013.0012.0011.0010.00

    9.008.007.006.005.004.003.002.001.000.00

    -1.00-2.00-3.00-4.00-5.00-6.00-7.00-8.00-9.00

    -10.00-11.00-12.00

    FISCAL YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 TF 6.84 16.20 0.05 9.29 3.74 -10.75 12.90 8.25 10.64 8.20 8.86

    Fort Pierce Police Officers' Retirement FundTotal Fund

    Fiscal Year Rates of Return September 30, 2002 Through June 30, 2013

    10

  • RA

    TE O

    F R

    ETU

    RN

    (%)

    24.00

    22.00

    20.00

    18.00

    16.00

    14.00

    12.00

    10.00

    8.00

    6.00

    4.00

    2.00

    0.00

    -2.00

    -4.00

    LATEST QUARTER ONE YEAR TWO YEARS THREE YEARS FIVE YEARS HIGHEST VALUE 2.08 22.33 10.23 16.62 7.42 FIRST QUARTILE 0.61 13.67 7.51 12.16 5.83 MEDIAN VALUE 0.01 12.36 6.74 11.57 5.20 THIRD QUARTILE -0.52 10.63 5.98 10.44 4.39 LOWEST VALUE -3.23 0.04 0.03 0.27 0.75 MEAN -0.13 11.95 6.32 10.62 4.86

    LATEST QUARTER ONE YEAR TWO YEARS THREE YEARS FIVE YEARSRETURN RANK RETURN RANK RETURN RANK RETURN RANK RETURN RANK

    TF 0.02 47 11.33 63 5.60 78 10.43 78 5.99 21 STRATEGIC MODEL 0.12 47 12.66 42 6.93 42 12.00 31 6.39 15

    Fort Pierce Police Officers' Retirement FundQuartile Ranking

    Total Fund Versus BNY Mellon Public Funds UniverseJune 30, 2008 Through June 30, 2013

    11

  • 6/2008 6/2009 6/2010 6/2011 6/2012 6/2013

    DO

    LLA

    RS

    150.00

    140.00

    130.00

    120.00

    110.00

    100.00

    90.00

    80.00

    70.00

    60.00

    133.75136.31

    LATEST QUARTER FISCAL YTD YEAR TO DATE ONE YEAR THREE YEARS FIVE YEARS

    TF 0.02 6.84 5.18 11.33 10.43 5.99 STRATEGIC MODEL 0.12 8.19 6.11 12.66 12.00 6.39

    Fort Pierce Police Officers' Retirement FundTotal Fund

    Growth of a Dollar AnalysisJune 30, 2008 Through June 30, 2013

    12

  • ENDED RETURNBEST QUARTER 6/2009 18.13WORST QUARTER 12/2008 -24.70BEST 4 QUARTERS 6/2011 30.25WORST 4 QUARTERS 6/2009 -25.67

    TOTAL # OF PERIODS: 60# OF POSITIVE PERIODS: 35# OF NEGATIVE PERIODS: 25

    QUARTERTO FISCAL ONE TWO THREE FIVE

    DATE YTD YEAR YEARS YEARS YEARSTOTAL FUND 4.42 11.48 19.58 11.38 17.35 6.69LG CAP CORE BNCH 2.65 14.04 21.24 12.49 18.63 7.12EXCESS 1.77 -2.57 -1.66 -1.11 -1.29 -0.43RISKLESS INDEX 0.02 0.08 0.11 0.08 0.11 0.29REAL ROR 4.11 10.50 17.61 9.47 14.67 5.38

    UNIVERSE STD SHARPE INFOPERIOD RETURN RANKING DEV RATIO ALPHA BETA R-SQUARED RATIO

    ONE YEAR 19.58 71 8.43 2.31 -5.11 1.20 85.88 -0.38TWO YEARS 11.38 71 15.71 0.72 -2.29 1.12 95.51 -0.21THREE YEARS 17.35 72 15.25 1.13 -2.53 1.09 95.85 -0.28FIVE YEARS 6.69 72 20.16 0.32 -0.66 1.06 97.24 -0.05

    Fort Pierce Police Officers' Retirement FundCS McKee Large Cap Core

    Performance Profile Through June 30, 2013

    The universe used was the Large Cap CoreThe risk benchmark for this analysis is the Lg Cap Core Bnch.

    13

  • UP MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    60.00

    55.00

    50.00

    45.00

    40.00

    35.00

    30.00

    25.00

    20.00

    15.00

    10.00

    5.00

    0.00

    YTD ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND 16.37 26.13 52.36 58.92 LG CAP CORE BNCH 15.48 25.03 50.25 56.47 DIFFERENCE 0.89 1.11 2.12 2.46 RATIO 1.06 1.04 1.04 1.04 UP PERIODS 5 10 25 39

    DOWN MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    0.00

    -5.00

    -10.00

    -15.00

    -20.00

    -25.00

    -30.00

    -35.00

    -40.00

    -45.00

    YTD ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND -1.87 -5.20 -32.80 -49.11 LG CAP CORE BNCH -1.36 -3.03 -28.51 -47.00 DIFFERENCE -0.51 -2.17 -4.29 -2.10 RATIO 1.37 1.72 1.15 1.04 DOWN PERIODS 1 2 11 21

    Fort Pierce Police Officers' Retirement FundCS McKee Large Cap Core

    Performance in Rising and Declining MarketsJune 30, 2008 Through June 30, 2013

    14

  • ENDED RETURNBEST QUARTER 9/2009 21.59WORST QUARTER 12/2008 -25.61BEST 4 QUARTERS 6/2011 38.79WORST 4 QUARTERS 6/2009 -31.42

    TOTAL # OF PERIODS: 60# OF POSITIVE PERIODS: 37# OF NEGATIVE PERIODS: 23

    QUARTERTO FISCAL ONE TWO THREE FIVE

    DATE YTD YEAR YEARS YEARS YEARSTOTAL FUND 2.38 18.89 25.12 10.36 19.13 7.91RUSSELL MIDCAP 2.21 18.77 25.41 11.06 19.53 8.28EXCESS 0.17 0.12 -0.29 -0.69 -0.41 -0.36RISKLESS INDEX 0.02 0.08 0.11 0.08 0.11 0.29REAL ROR 2.07 17.85 23.07 8.46 16.42 6.60

    UNIVERSE STD SHARPE INFOPERIOD RETURN RANKING DEV RATIO ALPHA BETA R-SQUARED RATIO

    ONE YEAR 25.12 42 7.33 3.41 -0.21 1.00 99.10 -0.33TWO YEARS 10.36 53 16.34 0.63 -0.83 1.02 99.79 -0.69THREE YEARS 19.13 56 15.83 1.20 -0.63 1.02 99.77 -0.38FIVE YEARS 7.91 68 22.07 0.35 -0.31 1.00 99.60 -0.26

    Fort Pierce Police Officers' Retirement FundVanguard Mid-Cap Performance Profile

    Through June 30, 2013

    The universe used was the Mid CapThe risk benchmark for this analysis is the Russell Midcap.

    15

  • UP MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    70.00

    65.00

    60.00

    55.00

    50.00

    45.00

    40.00

    35.00

    30.00

    25.00

    20.00

    15.00

    10.00

    5.00

    0.00

    YTD ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND 16.95 28.06 58.67 71.06 RUSSELL MIDCAP 16.86 28.24 58.11 70.90 DIFFERENCE 0.09 -0.18 0.56 0.16 RATIO 1.01 0.99 1.01 1.00 UP PERIODS 5 10 24 38

    DOWN MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    0.00

    -5.00

    -10.00

    -15.00

    -20.00

    -25.00

    -30.00

    -35.00

    -40.00

    -45.00

    -50.00

    YTD ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND -1.16 -2.29 -32.85 -51.30 RUSSELL MIDCAP -1.21 -2.21 -31.68 -50.78 DIFFERENCE 0.04 -0.09 -1.17 -0.53 RATIO 0.96 1.04 1.04 1.01 DOWN PERIODS 1 2 12 22

    Fort Pierce Police Officers' Retirement FundVanguard Mid-Cap

    Performance in Rising and Declining MarketsJune 30, 2008 Through June 30, 2013

    16

  • ENDED RETURNBEST QUARTER 6/2009 21.97WORST QUARTER 12/2008 -21.55BEST 4 QUARTERS 6/2011 35.84WORST 4 QUARTERS 6/2009 -19.90

    TOTAL # OF PERIODS: 60# OF POSITIVE PERIODS: 36# OF NEGATIVE PERIODS: 24

    QUARTERTO FISCAL ONE TWO THREE FIVE

    DATE YTD YEAR YEARS YEARS YEARSTOTAL FUND 2.45 14.63 19.50 5.30 14.63 8.47RUSSELL 2000 3.08 18.01 24.21 10.28 18.67 8.77EXCESS -0.64 -3.37 -4.71 -4.98 -4.04 -0.30RISKLESS INDEX 0.02 0.08 0.11 0.08 0.11 0.29REAL ROR 2.15 13.64 17.54 3.48 12.01 7.14

    UNIVERSE STD SHARPE INFOPERIOD RETURN RANKING DEV RATIO ALPHA BETA R-SQUARED RATIO

    ONE YEAR 19.50 93 9.09 2.13 -1.70 0.90 76.86 -0.88TWO YEARS 5.30 97 19.15 0.27 -4.54 1.00 92.48 -0.87THREE YEARS 14.63 97 19.03 0.76 -3.53 1.01 94.40 -0.76FIVE YEARS 8.47 73 24.36 0.34 -0.09 0.99 94.60 -0.06

    Fort Pierce Police Officers' Retirement FundCS McKee Small Cap Performance Profile

    Through June 30, 2013

    The universe used was the Small CapThe risk benchmark for this analysis is the Russell 2000.

    17

  • UP MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    85.0080.0075.0070.0065.0060.0055.0050.0045.0040.0035.0030.0025.0020.0015.0010.00

    5.000.00

    YTD ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND 16.93 26.42 70.51 83.89 RUSSELL 2000 16.88 29.88 73.90 83.88 DIFFERENCE 0.04 -3.46 -3.39 0.01 RATIO 1.00 0.88 0.95 1.00 UP PERIODS 4 8 22 37

    DOWN MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    0.00

    -5.00

    -10.00

    -15.00

    -20.00

    -25.00

    -30.00

    -35.00

    -40.00

    -45.00

    -50.00

    YTD ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND -3.84 -5.47 -38.58 -53.60 RUSSELL 2000 -0.88 -4.37 -34.90 -53.26 DIFFERENCE -2.96 -1.11 -3.68 -0.33 RATIO 4.37 1.25 1.11 1.01 DOWN PERIODS 2 4 14 23

    Fort Pierce Police Officers' Retirement FundCS McKee Small Cap

    Performance in Rising and Declining MarketsJune 30, 2008 Through June 30, 2013

    18

  • ENDED RETURNBEST QUARTER 3/2012 10.84WORST QUARTER 9/2011 -13.34BEST 4 QUARTERS 6/2013 18.79WORST 4 QUARTERS 6/2012 -4.52

    TOTAL # OF PERIODS: 24# OF POSITIVE PERIODS: 17# OF NEGATIVE PERIODS: 7

    QUARTERTO FISCAL ONE TWO

    DATE YTD YEAR YEARSTOTAL FUND 1.55 11.66 18.79 6.50ML CNV X144A ALLQUAL 1.61 11.95 17.68 6.57EXCESS -0.06 -0.30 1.11 -0.07RISKLESS INDEX 0.02 0.08 0.11 0.08REAL ROR 1.25 10.66 16.81 4.66

    UNIVERSE STD SHARPE INFOPERIOD RETURN RANKING DEV RATIO ALPHA BETA R-SQUARED RATIO

    ONE YEAR 18.79 20 4.81 3.88 3.39 0.85 92.71 0.59TWO YEARS 6.50 40 11.34 0.57 -0.36 1.05 98.03 0.00

    Fort Pierce Police Officers' Retirement FundSPDR Barclays Cap Convertibles

    Performance Profile Through June 30, 2013

    The universe used was the ConvertiblesThe risk benchmark for this analysis is the ML Cnv x144A AllQual.

    19

  • UP MARKET PERFORMANCER

    ATE

    OF

    RET

    UR

    N (%

    )

    22.0021.0020.0019.0018.0017.0016.0015.0014.0013.0012.0011.0010.00

    9.008.007.006.005.004.003.002.001.000.00

    YTD ONE YEAR TOTAL FUND 10.09 21.18 ML CNV X144A ALLQUAL 11.70 20.89 DIFFERENCE -1.61 0.30 RATIO 0.86 1.01 UP PERIODS 5 10

    DOWN MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    0.00

    -1.00

    -2.00

    YTD ONE YEAR TOTAL FUND -2.24 -1.98 ML CNV X144A ALLQUAL -2.38 -2.66 DIFFERENCE 0.15 0.68 RATIO 0.94 0.74 DOWN PERIODS 1 2

    Fort Pierce Police Officers' Retirement FundSPDR Barclays Cap Convertibles

    Performance in Rising and Declining MarketsJune 30, 2012 Through June 30, 2013

    20

  • ENDED RETURNBEST QUARTER 9/2012 7.47WORST QUARTER 6/2013 -0.61BEST 4 QUARTERS 6/2013 16.47WORST 4 QUARTERS 6/2013 16.47

    TOTAL # OF PERIODS: 12# OF POSITIVE PERIODS: 9# OF NEGATIVE PERIODS: 3

    QUARTERTO FISCAL ONE

    DATE YTD YEARTOTAL FUND -0.61 8.37 16.47MSCI GROSS EAFE -0.73 11.36 19.14EXCESS 0.12 -3.00 -2.67RISKLESS INDEX 0.02 0.08 0.11REAL ROR -0.92 7.36 14.48

    UNIVERSE STD SHARPE INFOPERIOD RETURN RANKING DEV RATIO ALPHA BETA R-SQUARED RATIO

    ONE YEAR 16.47 75 7.43 2.20 1.70 0.77 89.17 -0.76

    Fort Pierce Police Officers' Retirement FundAmer Fds EuroPacific Gr (Int'l)

    Performance Profile Through June 30, 2013

    The universe used was the EAFEThe risk benchmark for this analysis is the MSCI Gross EAFE.

    21

  • UP MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    28.00

    26.00

    24.00

    22.00

    20.00

    18.00

    16.00

    14.00

    12.00

    10.00

    8.00

    6.00

    4.00

    2.00

    YTD ONE YEAR TOTAL FUND 8.11 22.91 MSCI GROSS EAFE 11.88 27.59 DIFFERENCE -3.77 -4.68 RATIO 0.68 0.83 UP PERIODS 3 9

    DOWN MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    0.00

    -1.00

    -2.00

    -3.00

    -4.00

    -5.00

    -6.00

    YTD ONE YEAR TOTAL FUND -5.24 -5.24 MSCI GROSS EAFE -6.62 -6.62 DIFFERENCE 1.38 1.38 RATIO 0.79 0.79 DOWN PERIODS 3 3

    Fort Pierce Police Officers' Retirement FundAmer Fds EuroPacific Gr (Int'l)

    Performance in Rising and Declining MarketsJune 30, 2012 Through June 30, 2013

    22

  • ENDED RETURNBEST QUARTER 9/2012 6.66WORST QUARTER 6/2013 -3.73BEST 4 QUARTERS 6/2013 11.47WORST 4 QUARTERS 6/2013 11.47

    TOTAL # OF PERIODS: 12# OF POSITIVE PERIODS: 8# OF NEGATIVE PERIODS: 4

    QUARTERTO FISCAL ONE

    DATE YTD YEARTOTAL FUND -3.73 4.51 11.47MSCI GROSS EAFE -0.73 11.36 19.14EXCESS -3.00 -6.86 -7.67RISKLESS INDEX 0.02 0.08 0.11REAL ROR -4.03 3.55 9.57

    UNIVERSE STD SHARPE INFOPERIOD RETURN RANKING DEV RATIO ALPHA BETA R-SQUARED RATIO

    ONE YEAR 11.47 97 9.09 1.25 -2.05 0.74 54.83 -1.03

    Fort Pierce Police Officers' Retirement FundWHV International Performance Profile

    Through June 30, 2013

    The universe used was the EAFEThe risk benchmark for this analysis is the MSCI Gross EAFE.

    23

  • UP MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    28.00

    26.00

    24.00

    22.00

    20.00

    18.00

    16.00

    14.00

    12.00

    10.00

    8.00

    6.00

    4.00

    2.00

    YTD ONE YEAR TOTAL FUND 7.29 18.60 MSCI GROSS EAFE 11.88 27.59 DIFFERENCE -4.59 -8.99 RATIO 0.61 0.67 UP PERIODS 3 9

    DOWN MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    0.00

    -1.00

    -2.00

    -3.00

    -4.00

    -5.00

    -6.00

    YTD ONE YEAR TOTAL FUND -6.02 -6.02 MSCI GROSS EAFE -6.62 -6.62 DIFFERENCE 0.61 0.61 RATIO 0.91 0.91 DOWN PERIODS 3 3

    Fort Pierce Police Officers' Retirement FundWHV International

    Performance in Rising and Declining MarketsJune 30, 2012 Through June 30, 2013

    24

  • ENDED RETURNBEST QUARTER 9/2009 34.68WORST QUARTER 12/2008 -38.13BEST 4 QUARTERS 6/2010 55.47WORST 4 QUARTERS 6/2009 -42.37

    TOTAL # OF PERIODS: 60# OF POSITIVE PERIODS: 35# OF NEGATIVE PERIODS: 25

    QUARTERTO FISCAL ONE TWO THREE FIVE

    DATE YTD YEAR YEARS YEARS YEARSTOTAL FUND -1.60 9.05 9.05 11.17 18.43 8.28WILSHIRE REIT -1.38 8.58 8.42 10.79 18.50 7.21EXCESS -0.22 0.47 0.63 0.38 -0.06 1.07RISKLESS INDEX 0.02 0.08 0.11 0.08 0.11 0.29REAL ROR -1.91 8.06 7.19 9.22 15.72 7.02

    UNIVERSE STD SHARPE INFOPERIOD RETURN RANKING DEV RATIO ALPHA BETA R-SQUARED RATIO

    ONE YEAR 9.05 12 11.08 0.81 0.44 1.02 99.82 1.19TWO YEARS 11.17 1 17.79 0.62 0.42 0.99 99.93 0.65THREE YEARS 18.43 2 16.51 1.11 0.09 0.99 99.91 -0.16FIVE YEARS 8.28 8 32.07 0.25 1.01 0.97 99.94 0.43

    Fort Pierce Police Officers' Retirement FundVanguard REIT

    Performance Profile Through June 30, 2013

    The universe used was the MS Real EstateThe risk benchmark for this analysis is the Wilshire REIT.

    25

  • UP MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    110.00

    100.00

    90.00

    80.00

    70.00

    60.00

    50.00

    40.00

    30.00

    20.00

    10.00

    0.00

    YTD ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND 15.35 22.02 73.89 110.13 WILSHIRE REIT 14.48 21.11 74.23 111.36 DIFFERENCE 0.87 0.91 -0.34 -1.22 RATIO 1.06 1.04 1.00 0.99 UP PERIODS 4 6 21 35

    DOWN MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    0.00

    -5.00

    -10.00

    -15.00

    -20.00

    -25.00

    -30.00

    -35.00

    -40.00

    -45.00

    -50.00

    -55.00

    YTD ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND -7.78 -10.62 -30.83 -57.20 WILSHIRE REIT -7.45 -10.48 -30.93 -58.55 DIFFERENCE -0.33 -0.15 0.10 1.34 RATIO 1.04 1.01 1.00 0.98 DOWN PERIODS 2 6 15 25

    Fort Pierce Police Officers' Retirement FundVanguard REIT

    Performance in Rising and Declining MarketsJune 30, 2008 Through June 30, 2013

    26

  • ENDED RETURNBEST QUARTER 12/2008 4.96WORST QUARTER 6/2013 -2.11BEST 4 QUARTERS 6/2009 9.00WORST 4 QUARTERS 6/2013 0.43

    TOTAL # OF PERIODS: 60# OF POSITIVE PERIODS: 48# OF NEGATIVE PERIODS: 12

    QUARTERTO FISCAL ONE TWO THREE FIVE

    DATE YTD YEAR YEARS YEARS YEARSTOTAL FUND -2.11 -1.39 0.43 4.52 4.46 6.16FIXED INCOME BNCH -2.32 -2.24 -0.69 3.31 3.51 5.13EXCESS 0.21 0.85 1.12 1.21 0.95 1.03RISKLESS INDEX 0.02 0.08 0.11 0.08 0.11 0.29REAL ROR -2.41 -2.29 -1.27 2.70 2.05 4.75

    UNIVERSE STD SHARPE INFOPERIOD RETURN RANKING DEV RATIO ALPHA BETA R-SQUARED RATIO

    ONE YEAR 0.43 61 2.72 0.12 1.02 0.88 96.88 1.84TWO YEARS 4.52 33 2.72 1.63 1.46 0.91 94.83 1.72THREE YEARS 4.46 41 2.49 1.75 1.43 0.85 91.48 1.08FIVE YEARS 6.16 36 3.15 1.86 1.36 0.92 90.47 0.96

    Fort Pierce Police Officers' Retirement FundCS McKee Fixed Income

    Performance Profile Through June 30, 2013

    The universe used was the Fixed IncomeThe risk benchmark for this analysis is the Fixed Income Bnch.

    27

  • UP MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    11.00

    10.00

    9.00

    8.00

    7.00

    6.00

    5.00

    4.00

    3.00

    2.00

    1.00

    0.00

    YTD ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND 1.39 3.90 8.70 11.19 FIXED INCOME BNCH 1.60 3.58 8.24 10.79 DIFFERENCE -0.21 0.33 0.45 0.40 RATIO 0.87 1.09 1.05 1.04 UP PERIODS 3 8 26 43

    DOWN MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    0.00

    -1.00

    -2.00

    -3.00

    -4.00

    -5.00

    -6.00

    -7.00

    YTD ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND -3.23 -3.34 -4.84 -5.58 FIXED INCOME BNCH -3.98 -4.12 -6.59 -7.94 DIFFERENCE 0.75 0.77 1.75 2.36 RATIO 0.81 0.81 0.74 0.70 DOWN PERIODS 3 4 10 17

    Fort Pierce Police Officers' Retirement FundCS McKee Fixed Income

    Performance in Rising and Declining MarketsJune 30, 2008 Through June 30, 2013

    28

  • VARIABILITY OF RETURNS (RISK)22.0021.0020.0019.0018.0017.0016.0015.0014.0013.0012.0011.0010.009.008.007.006.005.004.003.002.001.000.00-1.00-2.00

    AN

    NU

    ALI

    ZED

    RA

    TE O

    F RE

    TURN

    %

    21.0020.0019.0018.0017.0016.0015.0014.0013.0012.0011.0010.009.008.007.006.005.004.003.002.001.000.00

    -1.00-2.00

    RETURN STD DEV BETA ALPHA R-SQUARED TOTAL FUND 10.43 9.35 0.99 -1.26 99.04 STRATEGIC MODEL 12.00 9.45 1.00 0.00 100.00 RUSSELL 3000 18.63 14.00 1.00 0.00 100.00 ML CNV X144A ALLQUAL 11.38 9.88 1.00 0.00 100.00 MSCI GROSS EAFE 10.55 18.05 1.00 0.00 100.00 WILSHIRE REIT 18.50 16.66 1.00 0.00 100.00 FIXED INCOME BNCH 3.51 2.81 1.00 0.00 100.00

    Strategic Model

    ML 3M TBill

    TOTAL FUND

    STRATEGIC MODEL

    RUSSELL 3000

    ML CNV X144A ALLQUALMSCI GROSS EAFE

    WILSHIRE REIT

    FIXED INCOME BNCH

    MORE RETURNLESS RISK

    MORE RETURNMORE RISK

    LESS RETURNLESS RISK

    LESS RETURNMORE RISK

    Fort Pierce Police Officers' Retirement FundTotal Fund

    Capital Market LineJune 30, 2010 Through June 30, 2013

    29

  • VARIABILITY OF RETURNS (RISK)40.0038.0036.0034.0032.0030.0028.0026.0024.0022.0020.0018.0016.0014.0012.0010.008.006.004.002.000.00-2.00-4.00

    AN

    NU

    ALI

    ZED

    RA

    TE O

    F RE

    TURN

    %

    8.00

    7.00

    6.00

    5.00

    4.00

    3.00

    2.00

    1.00

    0.00

    -1.00

    RETURN STD DEV BETA ALPHA R-SQUARED TOTAL FUND 5.99 11.79 0.86 0.33 97.27 STRATEGIC MODEL 6.39 13.47 1.00 0.00 100.00 RUSSELL 3000 7.25 19.02 1.00 0.00 100.00 ML CNV X144A ALLQUAL 6.65 15.56 1.00 0.00 100.00 MSCI GROSS EAFE -0.16 22.79 1.00 0.00 100.00 WILSHIRE REIT 7.21 33.16 1.00 0.00 100.00 FIXED INCOME BNCH 5.13 3.26 1.00 0.00 100.00

    Strategic Model

    ML 3M TBill

    TOTAL FUNDSTRATEGIC MODEL

    RUSSELL 3000

    ML CNV X144A ALLQUAL

    MSCI GROSS EAFE

    WILSHIRE REIT

    FIXED INCOME BNCH

    MORE RETURNLESS RISK

    MORE RETURNMORE RISK

    LESS RETURNLESS RISK

    LESS RETURNMORE RISK

    Fort Pierce Police Officers' Retirement FundTotal Fund

    Capital Market LineJune 30, 2008 Through June 30, 2013

    30

  • UP MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    42.0040.0038.0036.0034.0032.0030.0028.0026.0024.0022.0020.0018.0016.0014.0012.0010.00

    8.006.004.002.000.00

    YTD ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND 6.80 13.69 32.45 36.19 STRATEGIC MODEL 8.14 15.31 34.78 41.12 DIFFERENCE -1.34 -1.62 -2.33 -4.93 RATIO 0.84 0.89 0.93 0.88 UP PERIODS 4 9 23 37

    DOWN MARKET PERFORMANCE

    RA

    TE O

    F R

    ETU

    RN

    (%)

    0.00-2.00-4.00-6.00-8.00

    -10.00-12.00-14.00-16.00-18.00-20.00-22.00-24.00-26.00-28.00-30.00-32.00

    YTD ONE YEAR THREE YEARS FIVE YEARS TOTAL FUND -1.52 -2.08 -19.95 -29.19 STRATEGIC MODEL -1.88 -2.30 -19.29 -32.46 DIFFERENCE 0.36 0.22 -0.66 3.28 RATIO 0.81 0.90 1.03 0.90 DOWN PERIODS 2 3 13 23

    Fort Pierce Police Officers' Retirement FundTotal Fund

    Performance in Rising and Declining MarketsJune 30, 2008 Through June 30, 2013

    31

  • -ACCRUED INTEREST- Bond interest earned since the last interest payment, but not yet received.

    -ALPHA- A linear regressive constant that measures expected return independent of Beta.

    -ASSET ALLOCATION- The division of portfolio asset classes in order to achieve an expected investment objective.

    -BALANCED UNIVERSES - BNY Mellon Public Funds, Endowments & Foundations, Corporate peer groups, and PSN peer groups.

    -BETA- A measure of portfolio sensitivity (volatility) in relation to the market, based upon past experience.

    -BOND DURATION- A measure of portfolio sensitivity to interest rate risk.

    -COMMINGLED FUND- An investment fund which is similar to a mutual fund in that investors are permitted to purchase and redeem units that representownership in a pool of securities.

    -CONVERTIBLE BONDS - Hybrid securities' that offer equity returns during rising equity markets and improved down-market protection.

    -CORE- An equal weighting in both growth and value stocks.

    -CORRELATION COEFFICIENT- A measure of how two assets move together. The measure is bounded by +1 and -1; +1 means that the two assets movetogether positively, while a measure of -1 means that the assets are perfectly negatively correlated.

    -GROWTH MANAGER- Generally invests in companies that have either experienced above-average growth rates and/or are expected to experienceabove-average growth rates in the future. Growth portfolios tend to have high price/earnings ratios and generally pay little to no dividends.

    -INDEXES- Indexes are used as "independent representations of markets" (e.g., S&P 500).

    -INFORMATION RATIO- Annualized excess return above the benchmark relative to the annualized tracking error.

    -LARGE CAP- Generally, the term refers to a company that has a market capitalization that exceeds $10 billion.

    -MANAGER UNIVERSE- A collection of quarterly investment returns from various investment management firms that may be subdivided by style (e.g. growth,value, core).

    -MID CAP- Generally, the term refers to a company that has a market capitalization between $2 and $10 billion.

    -NCREIF - A quarterly time series composite total rate of return measure of investment performance of a large pool of individual commercial real estateproperties acquired in the private market for investment purposes only.

    -NCREIF ODCE - Open End Diversified Core Equity index which consists of historical and current returns from 26 open-end commingled funds pursuing corestategy. This index is capitalization weighted, time weighted and gross of fees.

    Fort Pierce Police Officers' Retirement FundGlossary of Terms

    32

  • -NET- Investment return accounts only for manager fees. -PROTECTING FLORIDA INVESTMENT ACT (PFIA) - SBA publishes a list of prohibited investments (scruntinized companies).

    -RATE OF RETURN- The percentage change in the value of an investment in a portfolio over a specified time period, excluding contributions.

    -RISK MEASURES- Measures of the investment risk level, including beta, credit, duration, standard deviation, and others that are based on current andhistorical data.

    -R-SQUARED- Measures how closely portfolio returns and those of the market are correlated, or how much variation in the portfolio returns may be explainedby the market. An R2 of 40 means that 40% of the variation in a funds price changes could be attributed to changes in the market index over the time period.

    -SHARPE RATIO- The ratio of the rate of return earned above the risk-free rate to the standard deviation of the portfolio. It measures the number of units ofreturn per unit of risk.

    -SMALL CAP- Generally refers to a company with a market capitilation $300 million to $2 billion.

    -STANDARD DEVIATION- Measure of the variability (dispersion) of historical returns around the mean. It measures how much exposure to volatility wasexperienced by the implementation of an investment strategy.

    -SYSTEMATIC RISK- Measured by beta, it is the risk that cannot be diversified away (market risk).

    - TIME WEIGHTED (TW) RETURN - A measure of the investments versus the investor. When there are no flows the TW & DOLLAR weighted (DW) returnsare the same and vice versa.

    -TRACKING ERROR- A measure of how closely a managers performance tracks an index; it is the annualized standard deviation of the differences between thequarterly returns for the manager and the benchmark.

    -TREYNOR RATIO- A measure of reward per unit of risk. (excess return divided by beta)

    -UP AND DOWN-MARKET CAPTURE RATIO- Ratio that illustrates how a manager performed relative to the market during rising and declining marketperiods.

    -VALUE MANAGER- Generally invests in companies that have low price-to-earnings and price-to-book ratios and/or above-average dividend yields.

    Fort Pierce Police Officers' Retirement FundGlossary of Terms

    33

  • Advisory services are offered through or by Burgess Chambers and Associates, Inc., a registered SEC investment advisor.Performance Reporting:1.Changes in portfolio valuations due to capital gains or losses, dividends, interest, income and management fees are included in thecalculation of returns. All calculations are made in accordance with generally accepted industry standards.2.Transaction costs, such as commissions, are included in the purchase cost or deducted from the proceeds or sale of a security.Differences in transaction costs may affect comparisons.3.Individual client returns may vary due to a variety of factors, including differences in investment objectives, asset allocating andtiming of investment decisions.4.BCA does not have discretion or decision making authority over any investments. All decisions regarding investment managerselection and retention, asset allocation, and other investment policies were made by the client. While BCA providesrecommendations and choices regarding suitable investments, not all clients take these recommendations or select from the choicesoffered.5.Performance reports are generated from information supplied by the client, custodian, and/or investment managers. BCA relies uponthe accuracy of this data when preparing reports.6.The market indexes do not include transaction costs, and an investment in a product similar to the index would have lowerperformance dependent upon costs, fees, dividend reinvestments, and timing. Benchmarks and indexes are for comparison purposesonly, and there is no assurance or guarantee that such performance will be achieved.7.Performance information prepared by third party sources may differ from that shown by BCA. These differences may be due todifferent methods of analysis, different time periods being evaluated, different pricing sources for securities, treatment of accruedincome, treatment of cash, and different accounting procedures.8.Certain valuations, such as alternative assets, ETF, and mutual funds, are prepared based on information from third party sources,the accuracy of such information cannot be guaranteed by BCA. Such data may include estimates and maybe subject to revision.9.BCA has not reviewed the risks of individual security holdings. The firm's ADV, Part II, is available upon request.10.BCA investment reports are not indicative of future results.

    Fort Pierce Police Officers' Retirement FundDisclosure

    34