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12-31-2011 General Employees Pension Plan Investment Review �I11 I� SuNTRuST Fourth Quarter 2011 Investment Review North Pa1rp,-k4Lh Mary Durkin Mullins Investment Manager SunTrust Banks, Inc. 407-237-5028 Mary.D.Mullins @suntrust.com Table of Contents I. Economic Overview II. Current Investment Portfolio III. Mutual Fund Factsheets IV. Appendix V. Investment Policy & Guidelines SU TRUST Plan Composition Assets Market Value Total iShares Russell 1000 Growth Index $ 1,281,377.67 17.1% iShares Russell 1000 Value Index $ 776,614.32 10.4% Total Cash MFS Research International Instl $ 627,484.67 8.4% 2.8% Total iShares Dow Jones Select Dividend Index $ 387,574.16 5.2% Equities Manning & Napier World Opptys Ser $ 382,753.16 5.1% 60.0% Legg Mason Emerging Markets Instl $ 364,157.52 4.9% Total Fixed Income Goldman Sachs Growth Opportunities $ 289,248.18 3.9% 37.2% RS Invt Value $ 226,602.92 3.0% Advisors Cambiar Small Cap $ 74,556.09 1.0% Invesco Small Cap Growth $ 73,685.21 1.0% Total Equities $ 4,484,053.90 60.0% Vanguard Total Market Bond $ 2,125,675.30 28.4% Vanguard Short Term Bond $ 354,321.72 4.7% iBoxx High Yield Corporate Bond $ 307,818.06 4.1% Total Fixed Income $ 2,787,815.08 37.2% Federated Treasu Obligations $ 207,680.88 2.8% Total Cash $ 207,680.88 2.8% Please refer to appendix for full disclosure. Period Ending December 31, 2011 SUNrfRUST Historical Asset Allocation 100% 90% 80% ' Fixed Income and Cash 70% (40.0%) 60% -60/0 10.5% 4.6% 8.4% 13.1% 4.90% 50% 5.9% 8.0% 6.3% 4.3% 18.4% 40% - 6.9% Equities 30% (60.0%) 20% 10% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 ■ Large Cap ■Small Cap ❑ Mid Cap ❑International ■Fixed Income ■Cash Please refer to appendix for full disclosure. Period Ending December 31, 2011 SUNrfRUST Historical Market Values $8,000,000 $7,479,550 $7,000,000 $6,549,483 $6,732,161 $6,279,769 $6,231,244 $6,000,000 $5,107,254 $5,302,875 $5,000,000 $4,803,776 $4,000,000 $3,491,966 $3,000,000 $2,000,000 $1,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 ©Total Market Value Please refer to appendix for full disclosure. Period Ending December 31, 2011 SUN'fRUST Account Activity Summary Portfolio Value on (09/30/11) $ 6,879,799.75 Portfolio Value on (12/31/10) $ 6,826,691.85 Beginning Accrued Income $ 1.75 Beginning Accrued Income $ 1.94 Portfolio Value $ 6,879,801.50 Portfolio Value $ 6,826,693.79 Contributions $ 177,621.57 Contributions $ 781,354.23 Withdrawals $ (28,291.67) Withdrawals $ (149,247.12) Gain (Loss) $ 332,174.91 Gain (Loss) $ (121,385.29) Interest and Dividends $ 118,245.30 Interest and Dividends $ 142,136.19 Net Accrued Income $ 1,840.55 Net Accrued Income $ 1,840.36 Market Value $ 7,479,549.86 Market Value $ 7,479,549.86 Ending Accrued Income $ 1,842.30 Ending Accrued Income $ 1,842.30 Portfolio on 1,392.16 Portfolio Value on 71481,392.16 Period Ending December 31, 2011 SUNrfRUST Performance Comparisons ITD 3 Months 12 Months* 36 Months* 60 Months* 120 Months* 200 Months* TOTAL PORTFOLIO Net of Fees Approximation 6.35% -0.33% 8.43% .0 iShares Russell 1000 Growth Index 10.54% 2.46% 17.79% 2.33% 2.42% -- Russell 1000 Grovtith Index 10.61% 2.64% 18.02% 2.50% 2.60% 6.60% iShares Russell 1000 Value Index 13.01% 0.19% 11.39% -2.73% 3.74% -- Russell 1000 Value Index 13.11% 0.39% 11.55% -2.64% 3.89% 8.17% MFS Research International Instl 4.12% -10.61% 9.33% -3.17% 6.04% -- Manning&Napier World Opptys Ser 2.93% -16.14% 8.41% -2.54% -- -- MSCI EAFE Index(Net) 3.33% -12.14% 7.65% -4.72% 4.67% 3.72% iShares Dow Jones Select Dividend Index 12.50% 11.90% 13.49% -1.51% -- -- DowJones Select Dividend 12.68% 12.42% 13.91% -0.66% 5.90% 10.63% Legg Mason Emerging Market Instl 4.05% -22.37% 17.56% 0.47% 12.93% -- MSCI EMF(Gross) 4.45% -18.17% 20.44% 2.72% 14.20% 6.98% Goldman Sachs Growth Opportunities 14.50% -3.70% 21.97% 5.48% 5.13% -- Russell Mid Cap Grovtith 11.24% -1.65% 22.06% 2.44% 5.29% RS Invt Value 12.85% -10.84% 15.88% -- -- Russell Mid Cap Value 13.37% -1.38% 18.19% 0.04% 7.67% Invesco Small Cap Growth 12.23% -0.81% 19.35% 3.17% -- Russell 2000 Grovith 14.99% -2.91% 19.00% 2.09% 4.48% Advisors Cambiar Small Cap 19.92% -1.16% 25.01% -- -- -- Russell 2000 Value 15.97% -5.50% 12.36% -1.87% 6.40% 9.47% Total Fixed Income 0. Vanguard Total Market Bond 1.23% 7.93% 5.81% -- -- -- Barclays US Aggregate 1.12% 7.84% 6.77% 6.50% 5.78% 6.58% Vanguard Short Term Bond 0.33% 2.95% 2.80% -- -- -- Barclays Govt. 1-5 yrs 0.42% 3.21% 2.58% 4.76% iBoxx High Yield Corporate Bond 7.84% 5.88% 18.64% -- iBoxx Liquid High Yield 7.98% 5.94% 19.88% *Annualized returns Period Ending December 31,2011 SUNTRUST Important Disclosures All information is as of December 31, 2011 unless otherwise noted. The perspective presented herein was prepared by SunTrust Institutional Investment Advisors, LLC for institutional clients and prospective institutional clients of SunTrust Bank. This material may not be suitable for others and should not be redistributed. Neither SunTrust nor any affiliates make any representation or warranties as to the accuracy or merit of this perspective for individual use. 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SU11fRUST Investment Policy • Guidelines Mrrr D.WAlm WICKIPMCWH Irmwr hirrr �. sunrrare EXHIBTTA IJ1Y i RUSr 3c4 faun 01anp amw.Suire,6w r32M VILLAGE OF NORTH PALM SEAIC'H rNrri'aM,r':+aa-ea+s;.'ea Frr�aau.aur. 7.rnte GENERAL EMPLt)YEEN'PENSION PLAN Ihlry C.mart®Q4_,TiuS LiOM STA°TEME14T OF fNVESTMENT POLICY July 27,2010 t37ALS ANIDGLUDEUNES w Mary K;7hy MCGWO Village at North Palen Beach 1351 US Highway 1 WBst Palm Beach,PL X3A Dear Mary Kay. Pariochcally,our aud4ors require that our clients provide written ac"wiledgment as B their lire didelirli and,StrjeCti;es Hrri,iSsl6ekrw are Jarigasd fi complerr nk all applical# aument inwesirrent policy. In that regard,ptearse sii n Letcm and rehurn t-lis lather tD LN. laws, The purpose of These guideLiws is ty. If you have arry qussfiam.please do not heeltate to oonlact me, ➢) Provide Iho inwGSirnent mgialMgur{il an a,�C,ucatc undcrstwdlrip,olrlte Sirxerely, Trugee%"ins aimenl ebjecti a and; 2) tndicwe ibe criieria by which ilhe Tnv trneraa Vlznagrr s perfixorrrmce will >�eValaalred, Mary d.Mulling Vte Pre6ldent&htvrstrrleni Manager The primary irmi sii neut nb*tive of dre Gentera6 Employees'Pcnslon Plan is itoe prriee dom wW pteservankm or the azim1%whiLe Lbr.wm7rrrl0ry ubjeGtivc is lonrl tent Enclosure growth. As a resulL.the invmtrwrLm managertsl shall sweat the hjgh�si possAbk return while mainrainina a pnrdenl ref"lbr legal gmNidenrtigris,Fdaclarry re*parrcihility, safely of capilaf and mini mum volatility of returns. Toaoxaplish ibeseobjeruMxs,the Booed Drlrfwlees hax ekxted to retain pruleasiuraal investmew,rranWr%. Tire rove Arai nl manorA.s?retained will W expwlad lo employ a I h act tf t d ear Investment halaw d im)!stmeru suategy fa rombieetiari of ykNdm hands and ew%h). I7otNexfge y a4t�ilsQnt{ii3t${i Flay 10,c'o6�D5 reimeins in q The fullLwing guidrJiri s,restriclkms and obj irgc xhsli apply 14 a inr4rnlrirerit Dated this `3 �y rff d f u i, . 2010, roan eerteiained byitle Based of Trusnnr� Sagrxsr:mre SuNTRUST Investment Policy • Guidelines A- C1IDELI°E1, A--s�dsti rlhgralmin-iayb eiovesh!d ii,a 43oiCtyofc*;he(p1iuU7CM invrzlrnerws U nired Stu-army agg icy lhercof A11 hough the equity puLtiun of the pOctIbRu shall nut tweed 65%of the Fund's total which are folly guararwmd as up the paylrlem of principal and inlacwl;marrrey ax tLa al 4�a 4;l.there no lirn'ri imposod oo the Fixed incorm tar cu b porliions ofllle market IumLis.depohli%In ML LL.L-wiadkmk and bank%which amr Fedtrully Fund. G shalt hr]be dleeisiamamine inV srmeol.munager(s)Lindeternnkne the must lmwncd_kapt Tale nbliplkm%wills ariding yraL[Ca:A A-I by Standoff}& approprialeaiirl mix(within Ihae limit'")ttrachkwe the Fund's Prclr x ur P-I by 6%od h. I. L�uwy PQ&MLI[k 6. PRQFJTRlTEDTRAN5A Tl=.' Amy hock purchased for the pca:tfolio{except mutll bund or kvoLmiggled All iFl%)wmemw in uplimn,futures,Inanicipal lx rrdi,pwimu nclals:,private fund shnrecl mash ham;tmxn IWed ow rnp�x wrack ctchanr urNASDAQ placerneGLi.ibm sales,ptlrehn-Lics on rnargan,red eslute anal.partnrrihipsaro luxosemern in any slin le rttwk is&Lte smell not exceed 51k of flier Fund"c loll prahibiwd, -h—nor Ann the�Wily 1p-Afcd'sc'a"a—i—(err s—t)—j 554:,,r the Fund's weal 7ti ets. g a. Ptxlltt?Ili COME LSC!_TEDLIfT L TOTAL PORT O: Thee Flied ineeunt p etion iA Ibi P1i'rision Fumd snail amdr w oldy of US. The tiY:al Ixxttclio goal shall be m actlicvc rslurrtx cn+er aoy nlllmg lhwvv-yrx Gimvernwrnt,1J,5-C'knerlirrleni hFncy bt+nds nr brgndk iwx wd by than padre]In excc:%of a TargeL Index. The Targel Index fex the Ptnsrnn Fund 1s Lorporatiuns lisiud on rtlajatr aLax-L exchsurge or NASDAQ and air rated def lr<xl r,a(,W?r inyesamenL in the S&P 5W I0dex MLI a Alk`4E tnae;lment in "BRg"f r baler by u natiearmlly fccopi7Jed toting wrvkv&tacepd IhIW 10%of Lalrrnan(:rwernmeMPCtirparrtr 6eitd Indcx. IF ihmild be a furthcr gnat a l'the Ether fixed incoua punfollonmy be in4nLed in securities not Imalogthis inseIALluenl man vr(s)that the Iola]pratfnlinmh3m in any rarll-ingthrex-year remirktion. Iniveglnik-nl in any Fiwglc cog)rwMe"d ate ahnll not ezt:a Ll 591, period whcwld rrical ac e:xt ed Ilre Ccata;umc,r Prior Indsx plw!.509!wi.,..Ilr,inl5 me the Fund's toLal 1:1.U— ant]rank In Ilie tapes of a reprewemullvr;urdwer3e of other rrrcruioeted, relative criteria,a Furilrcr Val of the total portfolkr ihall be.her IrroMe an 3. CON VER'l 1B 1.1-1A-i'1*RI'l F- afnlmliaxd rewim in any rolling thrc%-year period equal ccleir macrihran the role of'! , 6unds and pm line l slick,tL-:arc convertible im o common stuck or that include warrnn4r ffx the purchase ayd carrurtntt[lock are allawred only it it 2. E(3,LIfrY PORTFnLtt). meeuiibe akwvse meounmed criteria and w4uialottof egmhy and Mud itxY.+tlw, portfolio, 7`lre gtral of the ggWLY por LiM of 1lre p.Ldfollo shall be to achicve a retum user any roiling three-yr;m period in cxccw4 of Siarrdard&.PoofN 3410 lhdex.. In 4. M rR AL FLINDS AND COIAMINGLED FUNDS; aatdilian,it whnuld be a,goal of Ilse inxw Aaiiehl manager(s)thst the cgtdly Invcalnleal%in mutual toast sharks and Meek sfionsaired ectim mlg1ed fund,art' parMAiti returns in any falling three-yew Peri[d rank in The Top 4"of a per k iiblm. Flowamver-Wf of shim ve unties held in mutual ar comindri!led rrprosenwive unlverw of alter eiluily poafblioa. FtmLL;mtrxl mxe d 1he criteria trollined abw e. 3. 1•'174E�TS f1UCt7ME Pt7RTFC}L1L7: 51 CA$"E.0l.UVAI.Er.NTINVFLSTMh T1re primar}'talrjeelive uf'[he flxcti Lnccdm ptanfvlia i+tar add wlalliility, Pwre is no rninimnn nr rnusinurn arrKartnt f+r Fmrd ars:ets which may he amsWertcy,and safety to Lhr lolal ftlrtd parlfaliu. Tat Sea aMmy'objecliye invesled iftCish eyu1%JOILf,subjeCl io Me cash flrsw decd;of the Fund. shall lee Iota] d4x a turn i is:,Irxdal lee a eosl+eflhe enve�tttt rt maruaser�(vl to achieve a[Crum in rxac�of the[rbolao Awtxof the fiend whtiold rwA be in u non-inomeem hcnring aoxltaot fnrrnclre erntrtenVC rtpnrade Eland]nlex. 1L should bra swondry gr.ml axftl; Ihan olYe f L,}atvp.lauL.arruuW Ue invewed in an ilweresL latarim�a.aa+er�aror- Cash in'L Lmem rnan4erfsl thal the Tilted Idmnw portfealinielurm uvvr any falling err other rrcrt-i.nterea heerilt�asi:.ts shall nc�>ur total rLtcrc Ihun Ids'(rt rnulket urrce-gear pressed rmnk in the Tr,p aa�.axTa rkprksentadse uniturwe of similarly vnitrcl of Tt1nd asw"lx. monnged tmmd pnrlfulm- SuYTRUST Investment Policy and Guidelines C. REPORT M 6ND N I LAS; R1.%I LNT The irivrslnwnL markaver(s)for Lliv.Pemshm Fund shall pouvi Lie.quarterly repms.kr M-kg—t purp-- The relkirls slull imliucle dEfu m inummenis held,Marns canned and any offier imrcxmation nx� ry Fk)rclarjfrs i fion cHr the in v .Lnmnt rrwwgT'srLsuJh, Any loss.realizedor unrcutimd.kHi an -ilngle inveimrni pmifion ir.g.the%kxt or hnc d cxf any%ingle mm pan y,any simple a4�rninwra Ewmd im pumhasc poi e,shall*diwiwd to I he TmKl=on.a quaWrly b a sis hy I he jnryesuwm 1k1dMgMN"j lh 4B KrarJk rC"- Upm re:i%onable mmice,the imesuwnz nkwagwr(w mail pro4 iae any r2kyant in r—i—rpTjcM d bX lh 6c rd c4 Tm—. The imvwnwnt mAnnp;'%pcKnrmonce rbull tle cwaluom an P qwwwdy hosis in Lerms of&Jue%dike flkt guaL,a_,authored in this siawinerm. 0, POUCY REVIEW k 14 the inicnijon ofibe Bound offraiwesof the Viliageof North Palm Bees Ca rai Emph)yLe%'pension rAin to review the'gatenoorw of lmr tnncra Policy from unne Fo 6rne and io rime_-Ad Ax-m if necessary io rcfWi any dhanpos in phiM.,ophy or obje-fiyes.I hmeirr,if at any finne the in%�%Inneml manager believes Lbat the specifx objmiyei deflwd hmin eunnL4 be reel.or that the pidelliFtes uinnex*5iflilycouirict perfinrmum-e,the TruNILUS shall be nolilreed "rlai man, B: Nth t Gewral apioy es`PwMon Plan Do,: T. Capital A7aoa nt 7 DuLe SuNT)RusT