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2008 Trusco 1st Quarter Fund Management Report
sr!~F x tA,r s~ j •-- 1' i ~F .t. ;i. ~ ' ~ s f f t. ent . anagern tai M co ~ap~ Trus h palm' beach illage °f N°~' ~ tirement plan V loyees Re General Emp irs~ Quaker 20~$ F Michael T. Hill Managing Director ement Trusco Capital Manag _ 48-5243 om 15 7 'talc 6 truscocap mike.hitl@ • o • e+ o me nts l e of C Tab Section ~ pVerview.•°-•-~''''~~-• Sectionll folio Review • • • • - - ~ Section Ill Po F t Sheets • • • • Sectlon tV Fund ac ttribution SummarY° ° ' ' ' ° ' ° to GovernanCelFund A Section v corpora - ° ° , . . Appendix°.•°••-~°°'''~~ .Investment Policy Statement ,Disclosures ement, Inc." ent is a division of R?d9eW°?~h Capital Manag "Trusco Capital Managem • , -"~ .•- • ° i ~ ° 0 _ Boutique Overview ~~- RIDGEIAfORTH ~ RidgeWorth Capital Management, amoney-management holding company, brings CAPITAL MANAGEMENT sophisticated investors a collection of institutional asset management boutiques, each with swell-defined, proven approach and all with unwavering commitments to collective strength. lndivfauat tns;gnt. exceptional performance. Through our multiple, style-specific boutiques, we offer a wide range of equity, alternative, fixed income and liquidity management investment disciplines. -. •- ~ ? Alpha Equity Management LLC Alpha ? Alpha Equity Management, one of the pioneers in active extension (130/30) products, specializes in quantitative strategies engineered to generate alpha through all E4~ItY market cycles. It has developed an impressive six-year track record in international, real estate and domestic short-extension strategies. We believe this long-term Management experience will be a great benefit for investors seeking alternative investment strategies. ? International Equity 130/30 Real Estate 130/30 U.S. Equity 130/30 C E R E~J E ~ Ceredex Value Advisors LLC ? Ceredex is a value equity asset management firm adept at managing "the art and the science" of identifying catalysts that may lead to appreciation in undervalued, w a ~ u f n o v ~ s o R s dividend-paying stocks. Its culture of craftsmanship coupled with a strict enforcement of specific investment guidelines, have enabled it to construct value-oriented portfolios that help clients seek to achieve their goals. ? Large Cap Value Equity Mid-Cap Value Equity Small Cap Value Equity e C E R T I U M ? Certium Asset Management LLC ASSET IAANA6EMEN> ? Certium specializes in international and domestic equity strategies. The degree of rigor, depth of analysis and level of understanding that result from Certium's multi- factoralpha models provide its investment team with a high level of certainty in their investment process. This consistent approach has allowed Certium to manage the downside risk while growing clients' investments over the years. ? International Equity International Equity Index Large Cap Quantitative Equity IranOak ? Ironoak Advisors LLC a o v i s ~ R s ? Ironoak specializes in core-equity strategies for institutional investors. Its portfolio managers purchase stocks considered to be "on sale" under prevailing market conditions, regardless of whether they are growth or value, and build core portfolios that are positioned to benefit from opportunities they believe are overlooked. A culture of consistency and continuity supported by a team-based approach, atime-tested philosophy and a proven process are what has allowed Ironoak to deliver consistent, competitive results for clients. ? Large Cap Core Equity Mid-Cap Core Equity ----:'~I S~ ? Seix Investment Advisors LLC Inuestmer;:t ? Seix, one of the nation's largest high yield investment management firms, is a global boutique that invests in high quality investment grade and high quality high _i Advisors ct.c yield fixed income credits. The hallmark of its success is a credit driven /research oriented security selection process combined with macro strategies for sector allocation and yield curve positioning. Following this approach over 10 years, the Seix strategies have delivered competitive risk-adjusted returns for clients. ? HIGH GRADE ? Int. Bond Inv. Grade Bond Limited Duration Ltd-Term Federal Mortgage Securities Strategic Income Total Return Bond U.S. Gov't Securities ? HIGH YIELD ? High Income Floating Rate High Income High Yield ® o • 0 q ~ o p~ be delivered by r ~ ormance ° Silvana s investment toutp t chniques• h is that consissee ection iaS sector bets, or r ~ ~v a Its philoso ement and stock ded style b clieted risk mana9 • act of uninlen range of insfd stoph sHca the potenf~al imp B C for a diverse d includes rnirnmiz~n9 ement Lowlh equity Productsental analYs~S an selection, _ ital Manag fundam stock firmly establishe ~ down employs to sistent Silvant Cap managing g rounded in ottom-uP h Stock ever has a n ' ~T^ b1eR strategy led to co • which is 9 aI ha)pen ra k• Growl gists, Sta Y ? tment P a h Stock The ~rrr, multi facete rocess has •c 7AN ! Silvantfocuses °ocess erformance ~ P .Small CaP the name su99 f ,s - j` an inves enerate p to the prim ry Growl rket Cycles. s StableRiver's p to insfitufional investors• s ~""Tn4 Man nwEM a"t $eeks tog relaa~ve Large Cap stem • G R~' i team ~ IC risks .Select unpredictab1e ma IianCe sY macroeconom h Stock even In ent and comp Securities e strategies S TreasuN . Large Gap Growl ent LLB fixed incom of acawn ` . managem ana9em ua6ty Course Cehenswe risk lnstitua~onal U. * ital M high-q redictable Comp StableRiver Cap delivering inCOrporal~ng Securities ent process that folios lection U •S • Government Free + StableRiverVestmso~ Security. ,Institutional . VlrginlaTax- entwith b ormance for its clients• ReseNe Exempt al Bond S~ableg~~rex steadfast in offom-uP ent pert aI Cash .Tax- .Maryland MuniciP ,h ~ N a G ~ ~ `E" managem investor l Municip Securities ~A,,,a+• competitive ement . tnstitutiona . US Treasury tBond ~I(,tU1DlN sh Manag Tax_ExemP .Stable Value + ent Securities ,Georgia Term Bond . Institutional Ca • U S Governor Municipal Bona Bond Short- • uality h Grade ZG's investor?Hants . Prime Q . Hi9 Municip Securities mutual funds• key determ d ediate the • IpAI- gpN~ t Bon Term U •S • Treasury h are MuN1C Grade Tax-Exemp ,Virginia Interco Shoff managed portfolios and yowl t Bond d flow and earnings 9 ice and a savvY> lion. + ExemP ghorl Bon since mcep .Investment Tax. Ultra- for separately cash "client first' Spenchmark le that re erEormed the SHG'RT pURp,T10N enl Securities ices venue comorltment tp . U•S. Governor ent advisorYthe pnnciP f d L?-G h equity inYestm under rowlh style investing an~e that has out . Ultra-Short Bon yowl - 1987, operates ressive 9 term Perform ~ Capital ln~eStmen~a9gressive g since rity of a99 Zevenbergen ecializes unchanged integ ZCl to deliver long- ZCI") sP roce The firm's continuous aS alioWed ~~,reE~~"L~` ~ Zevenbergen t~ Stock selection P , ears h irrvEStr,+~ ~ hilosophY and rice apPrec~ati° Ether for over ten Y j~ of long term Smanagement teamErg rging Growth Stock experienced Growth Stock Aggressive istered with ent adviser reg meats • and is an investor results. G0 e without inc. tive of futureect to Chang Trust Banks, not indica subj mark of Sun Past returns are o$es only, are al advice. teed. or leg ch 3~,2~p8• ement is a service uaran atio i yees do not provide lax eWorth Capital Manag nolbe griting> are for inform ffecti~e Mar t accuracy ca time of w ent and its gimp will bee rrect bu ~tal M Inc. Ridg be co availabe~o~h CaP anagem boutiques anon Ridge`"orth and ith Capital Management'herein is beased onoinform Ridg eWorl contained were b tin purposes. ~ o:.' O ZOQS e SEC, All information rojections r arkel related P on for individual inves 9 ~ M and generalm Y notbe relied up ~ r - • _ -_ noa~ce, and -;,~: ; . o J Q 8 Themes likelihood that a recession ~O arter, raising the ative and O1l Ke j oorate in the first qu ro,wth turned neg cono+`ny continued to detereak housing market, job g n economies ¦ Thee rtion to thew strain on the consumer. o k a back seat to the has begun• In add utting more ast $~pQlbarrel, p ation pressures remained but t prices rose p ns of softening. lnfl term bond also showed sig to normal, but the long- weaker economy ns of returningnificantly. . dit spreads widened sig to the economic and cres and ¦ rt-term credit markets s c eWed srg el nk Sho ressiv y market remained illiquid, ache Congress responded a99 d new vehicles fio extend credit to a ¦ The Federal Reserve an creat?ng ackage• cutting short-term rates assing a stimulus p concerns by role of GSEs and p 13400 index fell 9.5% rn that,onal and anding the s, Intern ° ° Large-Cap brokers, exp weak. The broad RusSe ¦ i markets were uniformlYE international index losa~kets underperformed• ed flight Equ ~ while the MSCI EAF Emerging M contrnu quarter, erformed modestly. e style outp t uarter. Treasuries benend High Yield bonds. The the Yalu Corporate a field fell below ¦ and performance was mjXedrin the firs 10 • uidity concerns hurt Yr. Treasury note y B while credit and q and the to quality, regate Bond Index rose 2.2%, Lehman p`gg orate bonds, while 3'S%" d REITS rose while the Dollar f 'ems hurt stocks and core ¦ Commodities an and credit prob ¦ Bottom line: A weak economy commodities improved. . o~~' I._ . ® r . -~" ® F° Recession Monitor: Real Personal Income less Transfer Payments DEFINITION: 8 -- Real Personal Income Growth ? The NBER, official arbiter of economic cycle turning points, (YOY%) defines a recession as "a significant decline in economic s activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, 4 employment, industrial production, and wholesale-retail sales." - ? The committee views real GDP as the single best measure of z `e- ~ aggregate economic activity. _ _ _ ~ N : _-. - Real Persona h come Grow ? The committee places particular emphasis on two monthly 0 (3-Mo A n. Rate °i°> measures of activity across the entire economy: (1) personal income less transfer payments, in real terms and (2) -2 employment. In addition, the committee refers to two indicators 98 99 00 01 oz o3 04 os os o7 08 with coverage primarily of manufacturing and goods: (3) Source: The Conference Board /Haver Analytics industrial production and (4) the volume of sales of the Employment Growth manufacturing and wholesale-retail sectors adjusted for price 3 changes. The committee also looks at monthly estimates of Nonfarm Payroll Growth real GDP such as those prepared by Macroeconomic Advisers z - (voY%) (see http://www.macroadvisers.com). Although these - ' _ indicators are the most important measures considered by the 1 ~ ~ NBER in developing its business cycle chronology, there is no ' ~ _ ,'~dl~': E fixed rule about which other measures contribute information to Nonfarm Payroll Grow h the prOCeSS. o (3-Mo. Ann. Rate BOTTOM LINE: The NBER claims that it has fairly standard -1 guidelines for calling recessions. The declines in January, February and March employment along with downward revisions to previous -2 ~ months, combined with falling real income suggests we entered 98 99 00 01 02 03 04 05 O6 07 08 Source: Bureau of Labor Statistics /Haver Analytics recession in January. Updated with data as through 3/11/08 Source: MSCI, Ibbotson ro-. . r~sis C cial markets. S~ ~ e finan ddr~ S to stabilize th SeCUrrties• • to A ted step mo~,gage backed Ct~QnS d unpreceden tensions rn atic an scuts ent a taken dram and relieving V ~r'~~ ent hav liqu?drty 3118io$ totaling Govern ereSt rates, infecting _.75 300 bP of the V'S' to 2.25 unltS de reducing int 1130!08 Various 1121(08 _.50 7 cuts The act?ons inc?u 12111107 -.75 to 3.00 10(81107 _•25 to 3.50 totaling 9118107 _,25 to 4.25 3118108 325 by 3116108 -.75 Fed ~5? -. 40 5 to 4.50 _.25 to 2.50 Fun to 1!30!08 to 3,25 y 25 1(21(08 -.56 Federal 12111107 -.75 to 3.50 Reserve 10131107 .,25 to 4.00 Rate 9118107 -•25 to 4.75 Guts Discount -.50 to 5.00 Rate to 5.25 ~ , , . • ~ • 5.75 • ~ • ' EO, Fannie Mae, _ 3119108 OFl-l expand po~~atl - • - ~ Freddie Mac the cap caps by reducing 30% to 20% 3111108 to increase requirement from bn pnnQ'~ byexPandin9 collateral tYPes Expected to Provide $e00 liquid y of Treasury uidity to mortga9 - to X200 billion Secured of iicl market - - ~ Lend uP r~maN dealere than backed • securities tof 28 days (rath d 12112107 tO for a term Announce and avoid oveenight}. increase llquidit`1 t window of discoun funds to ~ stigma term d will auction ainst - - Fe institutions ag ~ . , deposito variety of collateral. ~ ~ : • . • ~ , ~ ~ ~ , • the wide funds arried persons ~ - • . • . 8y infecting term X500 for unm couples to further expand 00 for married 3116108 to include primary through a broader ran ae st a ~1 2 child Announced arties and a9 X300 per qualifying window access counterPrange of collateral in Iviay discount broader arket operations, e ~nn~n{actors dealers. payable b 9 than open rn uld help based on various pJ ~ fac~Uty co bn th~omote the efficient eSt~mated X168 ®.~nr p of liquidity -Total , • ' • ~ dissemination when the unsecured under interbank markets are stress. ~ ~ . ® , ' the 1st Quarter, 2008 rnational Equity Markets in Inte ? International Large Cap Core 20% MSC{ EAFE Index (Net) ? Drivers of Return ? Demark, Ireland, Switzerland, Belgium, 10% Sweden ? Detractors from Return -2.7% ? Germany, Portugal, New Zealand, ? International Small- o% Cap Stocks _ _ _ Greece, Hong Kang outperformed in the -10°~° _s.9°i° weak first quarter market, but "20°f0 1st Quarter 2008 1 Year Ending 3/31/08 _ __.-- continued to trail over the past twelve months. 20% ? International Small Cap ¦MSCI EAFE Index Small Cap Index (Net) ? Drivers of Return 10°f° ? Ireland, Netherlands, Finland, Switzerland, Sweden 0% ? Detractors firom Return ? Australia, Singapore, New Zealand, ° -6.2% Greece, Hong Kong -1010 -11.2% -20% 1 Year Ending 3/31!08 1st Quarter 2008 ? Weakness in China and 30% ? International Emerging Market India helped cause the 21'3% ? Drivers of Return Emerging Markets index 20°i° ~ MSCI EAFE Em. Mkts. Index (Net) ~ Pakistan, Chile, Egypt, Argentina, to underperform in the 10% Taiwan first quarter. ° ? Detractors from Return ? South Africa, Philippines, China, India, Turkey -10% -11.0% -20% 1 Year Ending 3/31/08 1st Quarter 2008 Past Performance is not indicative of future results. Please refer to a endix for full disclosure. Source: FacfSet .•- • ® r ~ ® ,~- - Bond Markets i n Q1, 2008 Treasury Yields Fall, Curve Steepened Wider Credit Spreads Offset Rate Cut Benefits 6.0 Junk Bonds Baa Bonds and T-Bill Rate as r as 10,9 Lehman Brolhars High Yieltl Coryomle Yleltl(-) 11.1 10.6 Moody's Baa Bond Vield (-) 10.5 g0-DayT-BIII Rate(-) 10.5 10.2 10.2 5.0 - 9.9 9.9 - 9•fi 2123-T-BIII Retoe 9~6 - - ~ - _ - - 9.3 ~Slnrt to Oocllno(rom 9.3 -^-..--~'^~ 8.7 6.7 4.0 --~-- 6.4 6.4 / / ~ 8.1 8.1 / / 7.8 7.6 ~ ~ 7.5 7.5 4 I / 7.2 7.2 3.0 6.9 6.9 6.6 6.6 6.3 6.3 3/31 /08 6.D 6.D 5.7 5.7 2 0 5.4 5.4 - - - -12/31 /07 5., 5.1 4.8 4.6 4.5 4.5 1.0 9/30/07 4.2 4.2 3.9 3.9 3.6 3.6 ------3/31/07 3.3 3.3 3.0 3.0 2.7 2.7 0.0 i ~ 2.4 2.4 2.1 2.1 0 5 10 15 20. 25 30 ; 5 ; 5 1.2 1,2 0.9 0.9 D,fi O.fi Flight to Quality Dominated Sector Returns IManoonwza!Z~ M J J A 3 0 N D J F M A M J J A 5 O N D J F M 15..0 ¦ Continued economic weakness and severe credit market strains 10.0 prompted the Federal Reserve to further cut the overnight _ n- federal funds rate to 2'/4% in the first quarter. ~t ~ ~ ~`I ¦ Yields fell and longer-term bonds outperformed. o.o ~4 ~ ~ The yield curve steepened significantly and Treasuries v, outperformed. -5.0 - ¦ However, credit spreads widened significantly during the -10.0 - quarter and largely offset the potential benefit of the Fed rate Agg G/Cr I G/C Tr Agy Cred ABS MBS HiYd Mun CUtS. ¦ 3-Nbs. 2.17 2.53 3.00 4.43 3.18 0.43 -1.92 2.43 -3.02 0.27 ¦ 6 Nbs. 5.23 5.71 5.99 8.56 6.51 2.63 -2.67 5.57 -4.27 1.91 . ,T 1-Yr. 7.67 8.35 8.88 12.21 9.77 3.99 -1.16 7.82 -3.74 3.54 Sources: FactSet. Lehman Brothers, Merrill Lynch. NDR putlook cted through first half of 2008'rd e reatest downwa ¦ ssion-I'rke environment in U`S". Consumer under g rices, Rece lobal expansron her energy p which will curtail g rising unemployment, hig pressure (weak housing, ital spending. i hter credit). Slower growth in cap tg e though weaker dollar and risrng to moderat , aces. ¦ Core inflation likely costs could put a floor under p commodity and energy Rates likely to to complete its moves soon. rs weak. ¦ Fed ease to continue. Likely ear into 2009 while economy remain low through end of Y der downward pressure near-term ¦ orate earnings growth f°recasbi~ ~ attractive. Corp but relative valuations are reasons Lion. h and quality in portfolio construe ¦ Still emphasizing strengt ital Management eWorth Cap ement. Neither Ridg eWorth Capital Manag ur oses ros ective clients of Ridg or merit of this analysis for individua fo info matiotnal p aP no This perspective was prepared for clients and p P re resentation or warranties as to the accuracy affiliations make any P on for future investing. Investors are advised to consult with their or any ts. Comments and projections w ~ ~ y no be'r f0ed up n availabl nvestm nit deocisions g indicative of future resin ecific advice, an oats before making any only, are not intended as individual ore ific financial needs and g investment professional about their sp ~ ~~;r~ • ~ - . ~ ~ ~ ~ a t~ate~~' e rat ~ Zoo$ r ~,urr ~ March3l~ pp7 O ~ a~' O ¦ ~ December 31, 2 A't Valuations As~e to neutral eQu~tY Weight. attractive, but risks have increased• 1 NEVT~~ Move Bonds ~ _ reasonable ~ Small-Cap headwinds. e relative valuation. modity pnces, Larg ' ease, resurging corn Value Modest: Fed tend to favor the s Market ~ ^ ~ ® a ns o{ dollar stability slower earning i t) S StOGk si9 Valuations' limited rebound favor • style over time• dollar and h a strong delayed • - ~ growt , ~ LargelSmalt Growth stocks. o{ Ell deceleration and Neutral: Signs more stable dollar response, ~ ~ monetary omies are less • GrOWthNalue _ ed; international a and valuation Develop demand developed. • ~ dependent on US ort {avorin9 ~ pomestiCllntl _ ~ " nay' compression supp raising market l~n - , rne~Cl ~ ' Remain underw d) mortg e weakness eight .~develope ~ - ag uality• ~ ~ ~ concerns hioher on1quality spectrum despite NIICtS ~ shift g economic eXpansion. evllnti Emerging and o{ continued + ant i ~ HI~ ~(101f~ ~ eXpectations olicy ~ weak dollar to favor . Firm overseas p _ _ n a ' tern bona . ? ~ _ Int'1 ~ Bond Quality - ? ~ h I and rising risk premiums s °u d h volatility return strategies. ~ • • + pomeSticllnti ? Hig benefit absolute still too rich. Valuations • tact but recent rune ht~ rowth story keep us underw 9 ? Hedge Funds Secular g in _ s ~ potential cyclical slow~n9 . + REITs ` ' ~ ~ ~- ~ ~ ~ v ~ Gomrnodities o X ~ o a ~ _ s v ° ~ 3 x ~ 91 y ~ A r ~I C CU ~ ll ~ 3 ~+- • r w ` . ~ Q r Market Snapshot: 3/31 /2008 S!',&~50U F : 1322.70 -0.4? -9.4 -12 51 -9.4 -5's1 5.8 11 `3 ;Leh an~A•ggregate, - 4.51 ~ 0.34" 2.17 ' 5'.23" 2.17 7:67 5.48 4:58 Russehl~pr 00, 564.66 -0.4 -9.3 -12.1 -9.3 -3:9 5.7 10.3 reasw. ~ 2.59 0.69. 4.43 8.56 4.43 12.21 6.60 4.80 1384.68 -0.7 9.5 -12:4 -9.5 -5:4! 6.2 11.9 Gouernmertt=Related 3.30 0.64` 3.35 6.73 3.35 9.95 6.25 .4.72 Ru~sell~~ti1~d~cap 2374.38 -1.4 -10.0 -13.2 -10.0 -8:9' 7.4 16.3 ° Corporate 5.89, -1:27 -0.15 1.84:: -0.15 2:87 3.84 4.26 f~usse112000 y 1709.77 0.4 9.9 -14:0 -9.9 -13:0' S.1 14 9 ~ ~,;~r~,~~`~ Securd¢ed y 5.23 0.78 1.72 .4.65. 1.72 6:82 5.42 4.56 Russe11,300a0,r ~ -~~ 1404.66 -0.6 -9.5 -12:5 -9.5 -6:1 6.1 12:1 ~hman Gouernment/Cre,di , r 3.91 -0.01 2.53: 5.71 2.53 8:35 5.55 4.62 MSCI~E~A~FE~~tNet)v, u r ~- 4584.01 -1.1 -8.9 -10.4 -8.9 -27 13.3 21.4 l~ehman IntermediatGlr. i 3.51 -0.01 3.00 5.99 3.00 8.88 5.66 4.37 MSCI~EAFE~S~ma~I~~apyNet~~r~~ 243.72 -0:3 6.2 -10.7 -6.2 -11x2: 11,1 25:5 Lehman :ighYieltl ~ ~,•e 10.86 -0:34. -3.02 -4:27. -3.02 `-3.74 4.89 8.62. 9 s 9~~ ~l~ MS,,CS Emer In arket,~iNe,,,~ 392.78 -5.3 -11 0 , -7.7 -11.0 21:3 29.2 35.5 ehman Municipal ~®,I~nde ? 4.08 2.86' -0.61 0:75 -0.61 1.90 3.70. ..3.92 ' ' ML ~ out ~ o p. 1 5 2.96 -0.14 2.84 5.42 2.84 8.64 5.50 3.93 9R'iu!ssell Top 200 Growth . 626.22 -0.1 -9.8 -10.1 -9.8 1:1 5.9 8:5 NIL~I-~ lJ. reasu 1.60 0.22' 2.98 5:44 2.98 9:00 5.41 3:61 Russel Sop 00 ,,a ue~~ a~~ 751.09 -0.7 8.7 -14.0: -8.7 -8;5 5.7 12.3 m ~ R4sseII1Q,©© Growth. ~ ~ ~ ~ ! 362.29 -0.6 -10.2 -10:9 -10.2 -0:7, 6.3 10.0 = - a 3,~Mo~' _.- 1.37 - 0.24' 0.97 2.06'' 0.97 4.81' 4.49 3.22 Russell ,00,E al ~ zl 445.54 -0.8 -8.7 -14.0 -8.7 -10`.0 6.1 13.7 6~Mo c 1.50 0.29 1.38 2.74 1.38 5.73 4.79 3.41 u "'e~ ~ Russell MidGap rowth r~,`, 867.98 -18 -10.9 -12.5 -10.9 -4:6 7.8 15.2 2 Yr 1.62 0.21 3.36 5:95' 3.36 9.39 5.44 3.62 Busse J, Wap ,alu~ 1002.06 -1:0 -8.6 -14.1 -8.6 -14.1 6.6 16.8 ~ ~ J 5 ~ ~ , 2.46 0.49. 5.56 10.39 5.56 14.37 6.65 4:35 Rusel OOU Growth ~ 2225.94 -0.6 -12.8 f -14.7 -12.8 -8:9 5.7 14.2 ~ ~ " ~ # 0 • ' 3.43 1.08 5.75 -11.32 5.75 .14:35 6.71 4:76 ~ussell 2000 lue ~ .y ~ 3584.89 1:5 -6.5 -13 3, -6.5 -16:9 4.4 15.4 ~ ~ 30 Yr' 4.31 2.1D 3.66 11:01 3.66 13.86: 6.40 6:04 Russell UOO Growth 2149.29 -0:6 -10 4 -11..2' -10.4 -1:5 6.3 10.3 ~ ~ : ~ ~ • Russell aI,u,,, t, ~ - p; 2732.79 -0.6; 8.5 -14.0:; -8.5 -1.0:6 5.9 13.8, 3M' orih • 1.35 1.79' 3.30 3,82` 3.30 5:`04` 2.71 1.12 • is , 6-Month + 1.51 1.79 3.49 4:09 3.49 5.01- 3.11 1:14 C'dhsume~®'iscrel~otiary" ~ 243.32 ` -0:8 ~ -15.3" -5.9 -17:7' -1.3 7.4 ~ 'rte:-a p y ~ ~ ~ j~~T - - 2 ea ; 4' 1.63 1.64 3.07 3.96 3.07 .4.58 3.79 1.51 Cons~rrie S`ta les _ ~ 291.22 3:4 L.L 1.6 2,2 9:3 9.5' 11.3. Year a ~ 2.47 2:50 3.46 4:23 3.46 `'4:54 4.18 2.74 Energy , 557.65 -2:6 7 2 3.1 -7.2 22:1 20.1 27.3 _ ~ 11) > ear 3.43 3.53. 4.03 4:58 4.03 <4:65 4.50 3:82 Finanaal ~ 334.56 -2:7 -14 0 -26.3 -14.0 -27:9 -1.T 6.3 ~ 3,,0 Year, 4.28 4„41; 4.45 4:84; 4.45 4":85 4.77 4.84 Health Care r ~ ~ 360.79 -4.9 -11.5 .-11.5 -11.5 -6.2 3.0'. 4.6 " Industrial ~`~~y~`~?*; 338.51 3.2 -3.9 -8.4; -3.9 6.5' 8.2' 15.4 ~ ~ ~ ~ • r ~ ~ ' ~ C~'• o •'GB'I All aturites~ (U ! 797.35 3.22;1 6.24 :10.40' 6.24 '16:53 6.32 7.59 J' ormatio[~ re ,o o ~ 348.36 1.0 -15.2 -15:1 -15.2 -0:4 5.2 10 4 ~ Ma 250.62 -1.1 -3.0 =2:9 -3.0 9:1 13.1 19:9 JPFM~,oyga E~ , 61 Global 411.20 -0.04 0.63 3.29, 0.63 4.45 9.64 11.38 Trcelecommumcation ervices' a 143.79 5.0 -13.7 -18.1 -13.7 -10.0 10.6 13:4 ~ • • ~ ~ U it litres ~ , . k 193.04 1.7< 9.9 3.1 -9.9 -1.6 13.0 19.7 Tr~'~'de"° ",erg ,ted Dolla (97e:~~ 1:0'01 70.31 -0:8 -4.0 -5:5" -4.0 -12:7. -4.8 -6.2 -~ ~ : . :Gold afar 916.20 -5`8 9.7 ' 23.3 9.7 38.2 28.8 22:2 C~S~/~Equ Marke, `e~itr~al ~ ` Y Feb 08 1:1 2 3 'S"T 1.8 ' 10:0 9.0' 8:3' Crud,: ®JI uture - 101.58 -0.3 5.8 24.4 5.8 54:2 22.4 26.7 DJ/AIG'Corn' od' F~utur , , 201.60 -6.5 9.0 13.1. 9.0 17:2 7.5 12.2 CSR Lorin Dnue ~ti Feb OS 0.9 -1 3 1.5 1.6 7.5 11.3 13.4 ~q ~ a $:ho u~tv Feb 08 2.1 1.7 3.6 -2.1 9:3' 11.3.. 12.9 Tql S 5.08 ` -0.06; 5.18 10:46 5.18 14.54' 6.75 6.75 CS/T Mufti Stritegy ~ Feb 08 -0.3 -2.4 L2 -2.1 4:7 9.5 10:1 • - ~ ~ ~ ~ ~ ~ ~ F~~SEN~AREITEquity Index 486.39 6.2' 1.4 -11:5 1.4 -17.4 11.7' 18:3 aConsu~r~?er~,,,Price". Iwnde;~(8?;~8,4"1~U~;,O~; 212.6 O:Q:', 0.8 "2<3' 0.4 4.1~ 3.4 30 _ "Sources: FactSet, Lehman Bros., MSCI, Merrill Lynch, FRB, BLS . a~,~es V . ark al ~ ~~t~,rrc H $6,7g0'379 $8,053,539 $6~734,67~ $5" 2g4 $5,585,78 $8000,000 $6,750"8g4 $6,928"252 963, $g,439,70~ $5"820,625 $7,4°4'00° $5}93~ "174 $q,,303,742 $6+400,000 $5}440'°Oo ~,Q4o,oo0 $3,o4o,p4o 2oa7 18200$ 2445 2406 $2,0p4'044 2Q04 2002 24p8 . 20p1 1999 2404 $1 444,440 1998 Value market i ~a r 1 ~ ~ r r i ~ ~ ~ • I 0 ~ N Account Activity Summary Beginng Market Value as of 12/31/2007 $ 6,790,723.52 Beginning Market Value as of 03/31/2007 $ 5,747,577.98 Portfolio Additions~thdrawals Portfolio Additions~thdrawals Additions $ 240,022.95 Contributions $ 1,089,693.83 Withdrawals $ (608,493.58) Withdrawals $ (869,072.79) Total Additions~thdrawals (368,470.63) Total Portfolio Additions~thdrawals 220,621.04 Portfolio Earnings Portfolio Earnings Gain (Loss) $ (371,229.10) Gain (Loss) $ 54,991.47 Interest and Dividends $ 2,621.92 Interest and Dividends $ 30,484.31 Net Accrued Income $ (106.41) Net Accrued Income $ (135.50) Total Portfolio Earnings (368,713.59) Total Portfolio Earnings 85,340.28 Ending Portfolio Value on 03/31/2008 $ 6,053,539.30 Ending Market Value on 03/31/2008 $ 6,053,539.30 Net Change (737,184.22) Net Change $ 305,961.32 Total Return -5.38 % Total Return 1.79 Please refer to appendix for full disclosure. Source: First Rate investment performance system. Data includes accrued income Performance Comparisons 1st Quarter 12 Months 36 Months 60 Months 120 Months Inception* 2008 3/31 /2008 3/31 /2008 3/31 /2008 3/31 /2008 3/31 /2008 ~ -~- • • t -- - . - - -- ~ _ T --_ --_ _ - . - --.._ _ -.. _ Total Equity -10 02% -2.56% 6.82% 11:50%._ 5.17% 10:10% SunTrust Retirement High Grade Growth -11.05% 6.34% 7.64% 9.61°/ 5.48% 11.03% Russell 1000 Growth Index -10.18% -0.75% 6.33% 9.96% 1.28% 7.60% S&P 5001ndex -9.44% -5.08 % 5.85% 11.32% 3.50% 9.45% SunTrust Retirement High Grade Equity Income -8.53% -6.09% 7.95% 14.22% 5.12% 9.95% Russell 1000 Value Index -8.72% -9.99% 6.01 % 13.68% 5.54 % 11.01 SunTrust Retirement High Grade Relative Value -10.68% -9.97°/ 4.06% 11.66% NIA NIA Russell 1000 Value Index -8.72% -9.99% 6.01% 13.68% 5.54% 11.01 S&P 500 Citigroup Value Index -8.94% -8.36% 6.76% 13.89% 4.50% 9.75% S&P 500lndex -9.44% -5.08% 5.85% 11.32% 3.50% 9.45% SunTrust Retirement Mid Cap Equity -9.60% -9.14% 6.42% 14.30% 8.82% NIA Russell Mid Cap Index -9.98% -8.92% 7.36% 16.31 % 7.65 % 11.89% S&P Mid Cap 4001ndex -8.85% -6.97% 7.06% 15.10% 9.02% 13.14% SunTrust Retirement Small Cap Growth -14.78% -5.20°/ 3.88% 15.32% N/A N/A Russell 2000 Growth Index -12.83% -8.94% 5.74% 14.24% 1.75% N/A RidgeWorth International Equity Index -8.90% -2.03%. 13.80% 21.99% 6.63°/ 7.98% MSCI-EAFE Index -8,91% -2.70% 13.32% 21.41% 6.16% 6.90% _,.-. ,...-_-_.,..w ~_..__-....__ _.~..__.-_____-_._. _ ~ _ TOtaLF.ixed'•InCOme '<2A8%' _ X8.78%--^---- -----5:41%_- ---._ _ 4:33%0 _ _ - ' 5.41% _ 6.19% SunTrust Retirement High Grade Bond 2.59% 8.84°/ 5.44°/ 4.46% 6.12% 6.76% Lehman Aggregate Bond Index 2.17% 7.67% 5.48% 4.58% 6.04% 6.68% Lehman Govt Credit Bond Index 2.53% 8.35% 5.55% 4.62% 6.12% 6.75% Past Performance is not indicative of future results. Period Ending March 31, 2008 Please refer to appendix for full disclosure. *Inception: April 1995 Source: First Rate investment performance system Portfolio Composition . Cash 0.7% Equity 62.1 ~z. Fixed Income 37.2% . . • Total Portfolio i„ '$6,053";539 ` 100.0% Total Equity $3,760,366, 62.1% SunTrust Retirement High Grade Growth $1,271,821 21.0% SunTrust Retirement High Grade Equity Income $877,262 14.5°~ SunTrust Retirement High Grade Relative Value $229,537 3.8% SunTrust Retirement Mid Cap Equity $460,496 7.6% SunTrust Retirement Small Cap Growth $167,433 2.8% RidgeWorth International Equity Index $753,817 12.5% Total Fixed ;Income < $2,252,,718 37..2% SunTrust Retirement High Grade Bond $2,252,718 37.2% Total Crash $40,455 0 7,,% Please refer to appendix for full disclosure. Period Ending March 31, 2008 Historical Asset AI location 100% o.oio o.o°i° o.o°i° o.o°i o'.o~~ o o~; 1.1~'- s:o:r 2.1%:. 1:6%` Fixed Income 90% and Cash 36.1% 5.3°/ 35.9` 34.1% 32.1%- o' o (37.9%) 800/° 38.0% 3754%'' 40.1 % 5.$ % 35:2 /0 37.2 /o 70% 60% 8.0% ° 9.1/0 12'.3% 12.5% 50% Equities 40% (62.1 30% 20% 10% 0% ~b ~ O ¦ Large Cap ®Small/Mid Cap ? International ? Fixed Income ? Cash ~ ~ a ~ n ~ ~ : ~ ~ ~ . ~'~A ~ ~ ~==o~ ~ ~ ~ ~ 3 a ~ ~ ~ ~ y .s, ~ Z ~ S, z ~ ~ • e ^ ~ ~ A~. e p ~ ~ I~I~I~ ~ ~ ~ ~ ~ ~ ~ ~ - ~ .~o-~ 4 I~~~~ B~ Na ~ ~ ~ r I~`I'~I~I' ~ ~ N~ c n I~ ~I~ n ~ ~ ~ n ~ ~ ~ ~ C a ~ WwWWwWw W ~ a~ ~ ae ae a a a'e a'z a se • ~ ~ e q a a x ~ A~~~~~~~ 3 ~ ? 9 a as ® s a ~ ~ a 3 o S ~a ° 3 • cp cod a@a _ - s ~ • Gl ~ ~ 3C 5C 2~4 AC 3~4 3R ~ 3~8 dC 6 1 Il ~e~ - _ _ O W 3e M ~ g _ a a~ a~ ae ale ae a"e ~ ~ a~ a}e ae ae ~t- v o~ o a •v ~Cfl a ~ ~ ~ ~ ~ ~ ~ T ~ 4 ~ 4 ~ 4 4 ~ 4 9 ~ ~ ~ ~ o •O ~ 2 3• ~ ~ ~ e 14.69'/, _ 3. ~ ~ ~ ~ • A g ti _a Hi ~ 1858'/ ~ ° ~ ~4 ~ E ~ ~ a °i d ® 33.18'/ . 4' i; ae ~ ~ 3~3 ~ ~ 11.04%, ~ r Eel 4 " n ~ 3' a• o $ S ~ 'g' ~ ~ ~ ~ ~ k •9.11`6 o ~ ~ ~ # ~ ~ o ~ ~ ~ ~ ~ ~ •1.11%, ' $ ~ ~ :y $ •10.41% ~ ~ Ig •11.88/, "tea ~ s~~ ~ •19.14%, ,A ~ o,~" ~ 3~' ~ ~ ,4 - -27.8&%, ~ w ~n ~'';gegL •11.16'6 aei.,N~ ~ 2. E ~ •.-~ 10.94 0 ~ ~ w I4.1S'6 W p 3 ° - -- - -- 18.10'/, ~ ~3 6.81% $ ~ ~y~ 6,30'/, o = ~ o +f ~ 10.81'/, ~ ~M c 4'n g. ri ~ ~ 0.43% ° ~ 5.18%, ~ ~ 4.91'/, vR n _.-----...__.. ~~~o ° a ~.1~ ~ 11.15'/, 4 1 r_, 9.br6 rr^^ 15.78'6 VJ r I ~ 10.A1'/, ~ 11.81'h 5.44'6 y ~=~o ° a. ~ ~a~• ~ • ~ ' ~ ~ • , .Adviser.. N/ortft IIIG A0.000 Ridge Capital Man~mmt. -~ -- E~oconMoW Carporatian 4546 - - Fund Benchmark Sub~Adviser - ~ 37s,Ot0 S1V.D9S. General Elettrit Company 4.4% Conwmcr Iliscreadomry 6.33% 7.p I% Geed«ValaePdisors LLC -:a vahK eq~iry rtmuger basedin T70:ob Cirevron Corporuion 3:2% Comumer Stap~ks I d.93% 9.24%. pr~,fiorida Conocophillips 3.2% Energy 19.69% Id.95% Tts:060 AT&T lrvcorperaced 3.EW F,nancial SerMCes 29.11% 27:86% POt'tfOilO MaltdgEt• TIO.D00 Bank afAmerioa Corporation 2S% Health Care 8.42% 7.35% •Mr4sRiddidcCFA PorxldiomanagersirKe 1995 ss.~ Pfi¢erlncorpotated 2.4% fndustria6s 19.59% 11.30% J6'Morgan Close & Company 22% InfonnationTerhnology 5.36% 3.61%. 3f311S8 a1311p3 3FSIKe ~ Werixon Ctznmutdra[ions Incorpx'aaed 21% Materials 3.63% 9.33% The find sedcs m preside capiral appreciation, and as a serordary ¦ kcsum vah<,;at rtimru~eert a4 aeanr arvs rapaol grim goof,artentinc«ne.6yiwesdngpriman'yot6Mdendpayi~ Hartfandfinarcaal5enicesGnxplncorporazQd 1.9% Telecom5ervices 5.32% 4,61%. securities. The fvd is desrgired to ca~gfy w:dt guiddmes tint the obtve graph aswmes an inroal 6rrpatheucd imesOnent of S 4tl,d?fb frpa fJtil6des T.48% 4.63% are fused pritapafly at Honda tr<rs govening the inve5tlnCK of 3f3 PNS m 313 4iAR, ' mtmidpal retinenKtrc plays far f'sc. pdice and general govermrxnt ~ . The performance quoted laerefn represems past perfomaonce. enpbytes $Ugt3blithr 77ta fiord & open to ivvesanent only Fry mats for which SunTnrst r BarJt servrs as tnaae or imesaner nuruger dgel~ed retrrx- ran plats wtidt adoptthe teruts of a ccJleuive trust Average AnnuaiTotal Returns ores 94.2% Inception Latest I 3 5 10 THs fiatd rs suiohle fa investors ufio arc bo{dng for oplol Date iZtrarter YTD Year Year Year Year Cash 8 Equialena 3,8% appreooolon potential andiotrie income wuh kss vdat3ty than the Fund 343 6.693 -853'% 4 -853% .d.OA% 7.45% 19.22% 5.12% equtymadaetasawlak. Russe111000aValuelydex ~ -8.72% ~ -8.72% -9.99% 4;01% 13.6846 5S4% rpu of March 31,2008 and subjeu ro change. Past per formance does rat guarantee ~itturr raukaThe performanxe daeo quoted rcpreseMS past per(onttattce and cunreni rctums may 6e ?ower or !tither. Total rctum figures indtade change in unit price, rc6nveament of dividends and capitol gains.The inrcttnaem return and principal value wlU fluctuate so that on investor's unity, when redeemed maybe worth more or lea than file originol test. , Son7nacBank.MeatberFDIC®SunTnstBmks.lnc. ~lJl'YilllJa71 SunTrust is a federally rega[eredseriict mark af.StmTruu Bxda. Iric.: IVOT FOR PUBLIC DbIR~UTION I Shares ~ First Quarter 20D8 International Equity RIDG~W'©RTH I N V E S T A~ E N T S Index Fund ridgewarthfunds.com - ',+al:u~ 3!ettd~ Gran~th 6roirRh?oFS10000Glnveahae4t~^o-r~~`~ ~ ~NleiBl~nBa{`>&of,Pprt(dior` ~a,,.m.M °~GniPoaiNon(%aRnetaasnts)* N .~:~ni"~.:...J4'.R.a..r.~av'_~:..,.,,a.sL...z.r_.:"It ..v.;.5:.u~u.,_,......m..~,.~-, ~ :..,.sd:_ _ ` .3~a.,~ .vr :aa~t.n o-a v<..r.~.u,~.._ - ~j~,J..: j -. Lama S`S]Y~ Aceo~~tvaiwwn.rFm~rn•~nto4mccneanecePaalgz~ns® rumd~ a'enchmark Equities 49.2°, L1J _ S19D~m Australia 3.96'% 4.Ok95 Cash & Equivalems p.7ab _ - ~Nid szaa.aca AusNia ^ ~9% L429 ~ ~ - sosa,x^. Belgitim 2.02% 2.05°J° ^ "ama&l Oer~mark 1.SS~n t.81°~ ~ St.U7 :{o Finaar~d 1.~9"/a 1.1 $°Io Frarvx eD.69~i 11.0595 sY.i.~;0 Germany 15.63'Ja 16.17°/> Adviser so _ Geaece 1.6036 iSv"9;. Ridg~e'Ntorth Capital Management, dnc. ~ kong Kong 1.15°6 7,13°.S t3 Sub-Adviser f • Ireland G.A&% aE~°r:~ iheabavegraohcssumesananrtioJhyFCrthencoVurvestmeryta' Italy 9.6i% Q.2~°,6 ~ cerium Asset Management i.LC an internatisanaV $7p0,pOpfrcm3/3iI38[o3l37r'p8. „ gr quanti¢ahmequity+nanagertaasedonAtkanta,Georgia. TheperfornrorrcequotedhereinrepresenCspostperlormance. ''apan 20.~2k ?0.67 0 Netherlands 2.6+ h 2,19°5 Pattfolio Managers _ New Zealand 0.45°r° D.42^: ~%nadDeaksns.CFA ~+TopTenHoldi~gs(96ofporltolWj! _ - - ~- ~onvay 1.74',6 1.68°rs Pa,rtf©Ieamanagersmce200C EntS a,r 1.6:6 Portugal a.A3°5 O.fi7°~; +.asofMarch31.200Band',suLvjecttachange. .prdrt~avAtkins p Sieagapore 0.6436 0.70°.5 Fa2folromana erslnce2005 E.anA (farmarl~VebaA. 7,5% ~ Post performance does not guomntee future g g } ~ Spain 6.66/° 6.659 results. The performance dale quoted represents (3bjective Ba,ncaSantanderCentratNispano i.3°6 Sav~eden 1,7536 1.E095 post performance and current returns may be The PUrtlseeksmarc.ice~rnese~^en:resultst~arcarrespc^d '~efarrica 1.3'e Savitzerlar..tl t,819~, 2~01°r; tower or higher. Totalretumfrguresinciudechange to the aggregate prix performanx of she securities TcsalSaNe~r, 13°6 L'mtedYirgda:m 10.75% 11.iR9 in share price, reinvestmen! of dividends and matudetl in the A4organ S¢arnieyiapital Irtternationah Europe. United Slates O~.BI?6 O.C3°; capitol gains. The investment return and princfpa! w:stralas a. -ar East f,EA-EJ. GDP N!eighted i^dex lPriae SiemensNpai,regd} 1.3" Cther 2:4330 0.85°> value wilt fluctuate so that an investor's shores, Peturr^. Aloianx Se 1.2°.6 when redeemed, may be worth more or less thou Unicredito Itatiana ,.13P the original cost Far performance data current Suitabil'Ity to the most recent month end, visit our website at This Furd ; swtable for aggressive investors who avant DaimferAg ".136' WWw.ridgeworthfands.COm. expc5ure to fare:gn markets. and are wi~hng to acypt [he 'iay+ata Motor 1.D% **The expenseratio for I Shares is0.61%. increased. •isks of r~c~eigr imaesting for the passipilit3~ of nigher returns. SharelxassDescription - - _ _ . ~ _ ~TotalRetumsasof3/3tf08 , 'Shares are offered pnrnanly to rinanciat instiFUtians and ' AverageAnnualTotalReturns mtermeeianes fc•'he~m eawr acxonrs ar far the axaunts of customers ~er vahom they maps act as fid;ucian7 agent. Inception Latest 1 3 5 10 ~m,~s+ment am~iser, c• custodian. ?base ao~unts primaaily Shares*" flats Quarter YTD Year Year Year Year cdns,st af: assats of a bona fide tnrsr,, business entity I gr6,rca _aa0wc .3,gpgy _2,Ci^yw fl3.80% 21.995; 6.6396 possessing a Fax identificatran rcumtte. ar employee genet plan and assets held wvthin select tee-bas?d programs and EAFEIndex G~Pweig'hted t;Price Return} -9.119 •9.'15; -6,08% 11.703'° 20,?250 5.4896 ceRainnan-discetianaryintecmediaryna-laadplatforms. MSCIEAFEIndexGOPVkig)nedi9'otalRetvrn) -9.22`Yo •9.2250 -i'.7k9 14.28'.'0 23.0710 736°k ~ 0 • ' • ' • ® fl ~ r~m~ ^ ~ peg 1 Shares 1 First Quarter 2008 1 nternational Equity Index Fund ImEestmentTerms&IndexDefinitions ~ ~t"P* a y> "~- ~~~p~~ta~""'"'~~~G",~ °$'t'°^°°'°'"' ..asa.,.a'..3GUa ..,_.a ~ M«.#: ~:x..~e.a..' _".a~&Y;_. x-as ,~.,.,ew.ued:, Price-to-Book Ratio is used to comaare a stock's market n~~* r ~ 1.C W value to its book value. The higher the ratio. the high?r the Total FundASSets S9+0.34.0.853 Alpha 0.49:b Ticker S,EI?( W premium the market iswiplingtopayEoracc^aparryaboveiks UpperCategpry Ina?rna[ionalMulai-CapCpr?Funds Bata 0.93 CUS6P T6626R813 _ hardassefis. Prue-to-Earnings Rofao q'PAE~ is a valu~atoon ratip of a Market Capitaliaataon{4V'td.Avg,1 $45.OCp3 R-Sgmar~ 95.fi' het Asset Valve S1I.82 Cn romparqlscumenYShanepaicetoitsper-snareearnrngs.The price-[o-Book 1.E SEsarpeRatio 0.89 F- higherthaPfEraGi0.Yhemorethema.rketiSrrillingtopayfor each doltarof annualeannings. Pnce-to-Earnings f 2 month traipingl a 1 Siarvdard pawation 10.31% Alpha measures a frond's risk-adjusted perforarrance Reaurn on Equity {12 month ¢ra ding} 19.9% `AS of March 31, 2006 acrd subject tp change. and represents the difference between a fund"s actual perfprmanf~ and its expected pecfcrmarsea, given its le<~eloE ns".•. as nneasured by b?ta. - Beta rs a means pf m?assuring the valatilibr~ of a secunty or n~ ~-' "- .`-- ~ _ -- _ - -'~ - tC81ltltlB' --r -.~ por[fo6o of eepuntieS in co."rrpariSpn waCh the marked as a ~'~~- -..,,a.m;.4,., ,,,b,'~.'~x. _ ' -_... .k.. vrhole k beta of 1 indicates that the securiay mill. move with I.IJ the marke greater than 1 indicates that dt's mo?e volati9e ae ~ than the market, and less than 1 indirates that it's foss 4596 Q 8 `-' ~ votatil?than the market. ae ~ ~e ~ ~ ~ R-Squared measures the portion of a Eund's rnxrvement that g59p, ~ ~ ~ e ~ I ~ ~ ~ o ae o is explained blr~ mwemertts `.n the market index, and he@~ I ~ ~ indicatatheaccuraC,~oEafund'salphaandbeta 25°/a j I o ;,e ~e ~ N ae ~ o r Sharpe Ratio rs arisk-adjusa~ measure that cs calculaaed i = o m using standard deviation and ?xoass return to deY?rmme 7596 i ~ ~ ~ I ~ ~ ~ ~ ~ ~ o reward perunitofrisk-Tnehigherthe5harperafiiath?betaer ~ ~ thafund'shistencalrisk-adjustedperformanca. 5°~ i ~ ~ = j Standard Deviation +s a statistical measurem?nt oB 59a I dispersion atx>ut an average, v+taich depicts how vrcdely I j retarnsuan?d ow,r a certain period of tome. MSC! EAFE l„de:; GDP weighted (Price RaWm} and (Total -1596 i ReWm,} ar? unmanaged ;gross dcmesaic product-weighted ~ I ~ i t'+auiry imd:o?s oomprisiolg ZO of the ,+8 countries rn th?MSCI -2596 1998 1999 2000 2009 2002 2003 2004 2005 2006 2007 unwerse and representing the d?velcpEtt world outside of ~ pghazps, ~ MSCp EAFEIndexGOPW'elghted 1Pflpe Return). ¦ MSq SAFE Index GOPtVeightedlTptal Retum9 North Ames ice. Each MSCI xuntry and?x is cr?ated sepaaate4y then aggregated, vvothvyu[ Chang?, into regronat hfSC: rndirxS. EAFc performance data is eatcula[ed in U.S. dolpars and +n <ocal currency. The MSCI EAFE Index. GDP vveight?d ~,~ofial R?turnl ~s adjusted for the r?irtvestrn?nt of income dsvidends- mvrestorscannot iruvest derectly i n an :nd?x. Investment Concerns ~p'e~~'~doesnotguamntee future results. InternatianatimvestingirMOlvesincreasedreskandvolatik[y. STIClassicFands6ecometheRidgeWorthFuttdsan3l37f0~8. Stocks nee more +rolatile and carry mare risk and return Animrestarshouldconsiderthefand~investmentobjectives,risks,andchorgesandexpensescarefuUybeforeinvestingor poaen[ial ahan ether forms of mv?s[ments. The net asset sending money. This and other importantlnforatoHon about the RidgeWorth Funds can be foundln the fund sprospectus. value per shaae or this Fund will flvctuateasthevafue of the 70 obtain more inPormation, please calf 7-888-784-3863 or visit www.ridgeworthfunds.com. Please read the prospectus s?curiti~s in the portEOlio changes. carefu!lybefore investing. Itisimppcta,n¢¢orem?,nberthattherearerissssassociart~iwiah R+dgeU4''Drfih Fuiads ©Fe di5ttrbWle+d by F~Dreside Disiri$Crtio~n a~ert+iCes, L.1? Ridge Vdorth liavestinents is the £tcfde ! indexinvesting;includingehe~potentdalriskofmarke¢dctpine,as ~ORte tOrRldge&'Va?irih VOi1YtOC 14rlpf]pgert1e11t, lrtC., the 00'Vi58f t0 tfie RrdgeVtrorth Funds, Orro~ jS tJOt Cf~1fOt8d vdth the ~ D G E r 1' O RT H :yell as rtha risks associated Wirth mv?stirog in specpfic distrrtwior. companies- I N V E S T hrS E N T S • Not FDIC Insured • No Bank Guarantee • May Lose Vafue ridReworthfuads.com REFS-IEVI.030E R' ~ ~ ~-v ~ - & - - 10.03% ~ ~ ~ ~ z a ~ ~.~m~ ~ ~ 9.11% - ~ d ~ o ~x~~ 3s ~ ~ » 3~~ ~ 3 •2.18'ti C e f.. _-___ ~ e,ss% o ~y J ~ ~~~~t ~ ~ ~ ~ ~-.°.~ ~ 0 8.16% & ~ 4- . ~ ~ O O ~~jj O qc O ~ ~ C..? ~ LS b~O ~Y ^a ~ ~ 5~~. ~ t~ II3d% ~ e 3~~° ~ o a ~ ~ 4~ 11.63% ~ ~ ~ ° s• ~ ~ ~ 0 3.a3% ~ ~ ~ S' 0 5 g ~ ~ 3 9 3• o ~ ~ 3.1P/~ ~ t °a•P o ~ ~ - ~ i 774%. ~ a ~ c r ~ ~ a 2.63% :i, h Q R 1.70Y~ ~ ~ ; ` - ~ H~ ~y i ~ t 1.69'/ ~- z H fl 3 ~ ~ 'r~ ~ 1 Fr~~.til ~ o~ ~ ®o f Fund Attribution Summary -Appreciated more than 15% -. -, , , ,- SunTrust~RetirementHig'h~''Gra~de~Growth~Fund ~ SunTrustWRetir.'ementHigh,~Grade~Equityrlncome•~Fund BJ SVCS CO COM $ 115,235.00 $ - 19.78 NO SECURITIES APPRECIATED MORE THAN 15% DARDEN RESTAURANTS INC CO $ 120,316.82 $ 180,392.10 18.81 SunTriist~R"efirement':High Grade.Bond Fund NO SECURITIES APPRECIATED MORE THAN 15% SunTrustRetirement;Hi h'GradeRelativeValue:Fund SunTrust Retirement High;Grade lute'mediate-B,ond F. and NO SECURITIES APPRECIATED MORE THAN 15% NO SECURITIES APPRECIATED MORE THAN 15% -SunTrust Retirement.Small Ca Equity'F..und S.unTrust.ItetirementMid Cap;,Equ' =Fund . ALPHA NAT RES INC COM $ - $ 62,988.00 37.07 CELGENE CORP COM $ 228,000..14 $ 337,033.71 32.58 BUCKLE INC COM $ 29,700.00 $ 55,912.50 30.64 CSXCORP COM $ 294,885.90 $ 419,123.25 29.08 LINDSAY MFG CO COM $ 70,690.00 $ 76,.852.50 29.21 DARDEN RESTAURANTS INC CO $ 231,073.69 $ 208,1.24.70 22.04 GYMBOREE CORP COM $ 36,552.00 $ 65,802.00 27.95 TERADYNE INC COM $ 204,452.82 $ 159,510.06 19.69 TUPPERWARE BRANDS COM $ 53,475.57 $ 103,236.92 25.20 CHESAPEAKE ENERGY CORP CO $ 361,463.20 $ 415,165.40 17.52 WALTER INDS INC COM $ - $ 75,156.00 25.11 PETROQUEST ENERGY INC COM $ 65,065.00 $ 98,838.00 24.90 KANSAS CITY SOUTHERN COM $ 54,928.00 $ 80,220.00 19.43 FTI CONSULTING INC COM $ - $ 110,112.00 15.91 BUCYRUS INTL INC NEW CL A $ - $ 55,907.50 15.76 BUFFALO WILD WINGS INC CO $ - $ 60,025.00 15.42 Please refer to Appendix for full disclosure. Period Ending March 31, 2008 Fund Attribution Summary -Depreciated more than 15% . . . . _ 'SunTrusf Retlrem`ent'.Hi'"h~Grade~Grovirth~F,und SunTrustsR`etlrement~Hlgh:Grade~Equ Cncome Fund NVIDIACORPCOM $ 402,116.40 $ -46.19 NATIONAL CITYCORPCOM $ - $ - -52.31 UNITEDHEALTH GROUP INC CO $ 528,747.00 $ 317,314.60 -40.86 SPRINT NEXTEL CORP COM $ 252,752.50 $ - -34.50 GOOOLE INC CL ACOM $ 462,600.12 $ 303,483.83 -36.25 MOTOROLA INC COM $ 211,728.00 $ 250,635.00 -32.59 MERCK & CO INC COM $ 686,860.20 $ 456,538.50 -33.93 CITIGROUP INC COM $ 489,704.96 $ 301,679.28 -23.82 APPLE INC COM $ 758,844.48 $ 561,228.50 -27.41 JABIL CIRCUIT INC COM $ 125,977.50 $ - -22.59 PRECISION CASTPARTS CORP $ 589,336.30 $ 442,925.12 -26.22 HARMAN INTL COM $ 128,992.50 $ 215,523.00 -21.11 BAKER HUGHES INC COM $ 314,181.40 $ - -21.13 WACHOVIACORP 2ND NEW COM $ 494,390.00 $ 475,200.00 -20.86 INTEL CORP COM $ 613,659.88 $ 496,840.44 -19.94 AMERICAN INTL GROUP INC C $ 419,760.00 $ 283,287.50 -20.18 DELL INC COM $ 446,817.30 $ 369,914.40 -18.69 LEGG MASON INC COM $ 197,505.00 $ 319,086.00 -19.79 PRICE T ROWE GROUP INC CO $ 575,194.24 $ 480,900.00 -17.42 MERRILL LYNCH & CO INC CO $ 139,675.36 $ - -19.00 BOEING CO COM $ 351,589.20 $ - -17.25 HCC INS HLDGS INC COM $ 146,268.00 $ 176,982.00 -18.59 ADOBE SYS INC COM $ 476,225.85 $ 403,768.55 -16.65 PRINCIPAL FINL GROUP INC $ 120,470.00 $ - -18.28 MICROSOFTCORPCOM $ 1,079,392.00 $ - -15.25 MORGANSTANLEYCOMNEW $ 151,629.05 $ 155,608.50 -18.25 MARATHON OIL CORP COM $ 295,171.00 $ 469,680.00 -18.07 ';P Un •rus a ~elllerl r ra e4 e a IV2'~. a Ue'#: , Un ' WASHINGTON MUTUAL INC COM $ 111,602.00 $ 198,790.00 -17.40 BE4RSTEARNS COS INC COM $ 122,844.00 $ - -62.74 HARRIS CORP DEL COM $ 129,872.96 $ 263,129.66 -17.01 SPRINT NEXTEL CORP COM $ 226,387.46 $ - -48.71 BRISTOL MYERS SQUIBB CO C $ 185,640.00 $ 228,975.00 -16.09 SCHERING PLOUGH CORP COM $ 264,854.88 $ 137,846.06 -45.45 PUBLIC SVC ENTERPRISE GRO $ 186,656.00 $ 204,969.00 -15.51 UNITEDHEALTH GROUP INC CO $ 200,499.00 $ 136,821.52 -40.28 DONNELLEYR R & SONS CO C $ 122,655.00 $ 248,542.00 -15.37 MOTOROLA INCCOM $ 266,055.48 $ - -39.77 VALERO ENERGYCORP NEW CO $ 215,412.28 $ 130,681.71 -29.85 VA; ;.rUS i' a Iremen 1 -, ap;" UI ,Un AMERICAN INTL GROUP INC C $ 247,308.60 $ 174,384.00 -25.70 NVIDIACORP COM $ 211,740.48 $ - -41.53 LEGG MASON INC COM $ 199,553.20 $ 44,951.94 -23.62. JABIL CIRCUIT INC COM $ 199,731.60 $ - -36.74 INTEL CORP COM $ 393,981.48 $ 270,743.94 -20.49 TELEPHONE & DATASYS INC $ 341,921.20 $ 227,687.46 -36.42 MICROSOFT CORP COM $ 413,316.00 $ 285,105.48 -20.06 TESORO CORP COM $ 351,835.20 $ 255,450.00 -36.29 PRINCIPAL FINL GROUP INC $ 306,888.72 $ 214,856.32 -19.29 OWESTCOMMUNICATIONS INTL $ 317,510.94 $ 226,336.92 -33.44 DELL INC COM $ 245,198.04 $ 172,447.44 -19.18 CADENCE DESIGN SYS INC CO $ 406,385.91 $ 158,875.88 -32.16 BRISTOL MYERS SQUIBB CO C $ 293,390.76 $ 203,947.50 -18.56 SOTHEBY-S DEL COM $ 218,084.40 $ - -31.76 GOODRICH CORP COM $ 334,903.23 $ 236,136.06 -18.23 ITT EDUCATIONAL SVCS INC $ - $ - -30.66 MCGRAW HILL COMPANIES INC $ 186,893.46 $ 123,413.00 -16.40 RAYMOND JAMES FINL INC CO $ 343,354.58 $ 204,912.66 -27.87 TEXAS INSTRS INC COM $ 242,484.00 $ 177,648.68 -15.43 MENS WEARHOUSE INC COM $ 179,524.92 $ - -27.42 BAKER HUGHES INC COM $ 263,899.40 $ 192,964.50 -15.18 VISHAY INTERTECHNOLOGY IN $ 266,891.31 $ - -26.18 JANUS CAP GROUP INC COM $ 270,848.25 $ 275,004.86 -25.94 LEGG MASON INC COM $ 241,321.85 $ - -23.76 TORO CO COM $ 288,532.00 $ 265,309.90 -22.62 NOVELLUS SYS INC COM $ 401,336.49 $ 341,262.60 -22.43 _ HARRIS CORP DEL COM $ 392,627.52 $ 395,568.03 -18.95 Un rUS " e semen ~ 1 ra eS On r .~,Ufl PACKAGING CORP AMER COM $ 407,800.20 $ 360,205.23 -18.69 CIT GROUP INC NEW 5.60 $ 502,623.36 $ - -25.79 TERADATACORP DEL $ 263,629.38 $ 239,858.38 -18.04 ALTERNATIVE LN TR 6.1725 $ 971,843.50 $ 762,384.75 -19.95 PRINCIPAL FINL GROUP INC $ 429,079.72 $ 435,953.28 -17.96 GOODRICH CORP COM $ 390,967.57 $ 354,951.72 -17.54 MCGRAW HILL COMPANIES INC $ 265,663.84 $ 216,194.45 -16.56 DIAMOND OFFSHORE DRILLING $ 429,124.00 $ 383,770.80 -16.44 UI7 YU " , e [amen . , 1 ^ ra e'i h arms la e' On Ub CURTISS WRIGHT CORP COM $ 296,431.00 $ 273,145.80 -16.07 CIT GROUP INC NEW 5.60 $ 157,912.32 $ - -25.73 AMERICAN EAGLE OUTFITTERS $ 297,634.10 $ 309,821.94 -15.63 PACCAR INC COM $ 270,874.56 $ 288,135.00 -15.54 Please refer to Appendix for full disclosure. Period Ending March 31, 2008 Fund Attribution Summary -Depreciated more than 15% -. SunTrustReti'rement-SrriallJCap~Equi `,Fund ~ SunTrusk:Retirement.SmalhGap Equi Fund continued SHORETEL INC $ 44,704.00 $ - -65.41 NATCO GROUP INC CL A $ 81,225.00 $ - -19.85 GLOBAL SOURCES LTD USD.01 $ 55,875.60 $ - -55.28 PHASE FORWARD INC COM $ 66,337.50 $ 72,590.00 -19.81 SIGMA DESIGNS INC COM $ 24,840.00 $ - -47.04 VIRGIN MOBILE USA INC CL $ 27,212.29 $ - -19.81 TESSERA TECHNOLOGIES INC $ 72,800.00 $ 38,480.00 -46.77 ASTEC INDS INC COM $ 37,190.00 $ - -19.75 GSI COMMERCE INC COM $ 36,075.00 $ - -46.45 DEVRY INC DEL COM $ 103,920.00 $ 77,404.00 -19.72 LIFE TIME FITNESS INC COM $ 54,648.00 $ - -44.48 CBEYOND COMMUNICATIONS IN $ 53,728.22 $ - -19.62 SYNCHRONOSS TECHNOLOGIES $ 49,616.00 $ - -43.66 HERCULES INC COM $ 72,562.50 $ - -19.36 DOUBLE-TAKE SOFTWARE INC $ 72,762.00 $ 54,312.00 -42.41 ALEXION PHARMACEUTICALS I $ 108,793.50 $ 106,740.00 -19.01 NETGEAR INC COM $ 80,899.56 $ 63,201.60 -40.56 KORN/FERRY INTL INC COM N $ 39.,522.00 $ - -18.81 ANADIGICS INC COM $ 39,338.00 $ 31,160.00 -40.43 GENOMIC HEALTH INC COM $ 52,072.00 $ 47,225.00 -1820 BRIGHTPOINT INC COM NEW $ 57,600.00 $ 53,922.00 -40.38 TRANSDIGM GROUP INC COM $ 70,013.50 $ - -17.70 IMMUCOR INC COM $ 101,970.00 $ - -38.95 HOLOGIC INC COM $ - $ 61,160.00 -17.63 SYNAPTICS INC COM $ 45,276.00 $ 37,014.00 -37.90 MEDCATH CORP COM $ 42,980.00 $ - -17.59 FCSTONE GROUP INC $ 46,030.00 $ - -36.70 AMERICAN ORIENTAL BIOENGI $ - $ 40,095.00 -17.50 URS CORP COM NEW $ 46,150.50 $ 57,207.50 -35.02 WILLBROS GROUP INC COM $ 57,435.00 $ 64,260.00 -17.34 VASCO DATASEC INTL INC C $ 60,028.00 $ - -34.51 RADIANTSYS INC COM $ 45,676.73 $ 60,783.47 -17.08 OMNICELL INC COM $ 72,711.00 $ - -34.20 AMERICAN COML LINES INC C $ - $ 35,550.00 -16.86 ZOLTEK COS INC COM $ 75,022.50 $ - -33.03 MATRIX SERVICE CO COM $ 60,005.00 $ 34,360.00 -16.58 ALIGN TECHNOLOGY INC COM $ 40,032.00 $ - -32.57 WOODWARD GOVERNOR CO COM $ 100,701.90 $ 87,214.08 -16.38 AN1AG PHARMACEUTICALS INC $ 60,130.00 $ 38,408.50 -31.54 COLUMBUS MCKINNON CORP N $ 60,347.00 $ - -15.38 ARTHROCARE CORP COM $ 52,855.00 $ 65,032.50 -31.54 FOUNDRY NETWORKS INC COM $ 72,708.00 $ 66,585.00 -30.17 XENOPORT INC COM $ 69,402.96 $ 58,357.74 -29.82 BLUE COAT SYS INC COM NEW $ 44,374.50 $ 40,774.00 -28.99 ATHEROS COMMUNICATIONS IN $ 41,076.30 $ 39,491.80 -28.85 AUTHENTEC INC $ 36,717.31 $ 35,058.38 -28.74 NETLOGIC MICROSYSTEMS INC $ 59,570.00 $ - -28.49 DECKERS OUTDOOR CORP COM $ 77,530.00 $ 59,301.00 -26.18 SHUTTERFLY INC COM $ 32,025.00 $ - -25.32 COMTECH GROUP INC COM NEW $ 47,524.60 $ - -25.31 COMTECH TELECOMMUNICATION $ 67,512.50 $ 68,250.00 -25.23 GFI GROUP INC COM $ 71,790.00 $ - -24.98 KAMAN CORP COM $ 69,939.00 $ - -24.03 KOPPERS HLDGS INC COM $ 56,212.00 $ - -23.92 UNIVERSAL ELECTRONICS INC $ 58,520.00 $ - -23.92 ALKERMES INC COM $ 64,760.86 $ 51,131.52 -23.36 TERRAINDS INC COM $ 133,728.00 $ 51,518.50 -22.82 ULTASALON COSMETICS & FR $ 3,430.00 $ - -22.60 VAIL RESORTS INC COM $ 48,429.00 $ - -22.38 FOSSIL INC COM $ 69,267.00 $ 62,607.00 -22.24 CASEYS GEN STORES INC COM $ 47,376.00 $ - -21.34 TEMPUR-PEDIC INTL INC COM $ 35,059.50 $ - -21.04 OSI PHARMACEUTICALS INC C $ 33,957.00 $ 35,520.50 -20.35 Please refer to Appendix for full disclosure. Period Ending March 31, 2008 ~/erX1?aC1Ce ting? ~ the rate Tonal (GMI) ra sin evaluating ~orp° eN{'etrics internat . institutional inVeShat governance d Governanc designed to assist and the impact t ective an ~ What is a s stem orate g 400 metric set of obj GMI uses a ratin any,s Corp Cever~~naMl uses a . s rated. uality of a C°mp erforman an~e have on.p anies q radices may. 'ed cnteroa to each °f the c ~ databaSe? n 4,000 comp ponsistently apple in the GM son more tha anies are covered t comp or orate governance rating ? Wh The database features c p globally. s determined? Dries: are GMI rating n the basis of six core categ ? How . Ratings are calcueators o ~ Board of D Financial Der R ghts ~ Shartakeover provisions ensation Anti r comp vironmenta?, labor and sourcing ~ ulatory, en ~ executive ane av?or ~ includes reg sis compared to all ~ Corporate B a relative ba 10 is blems and policies ro re eXpressed on or bond's rating of 1 is loweS , p s for Trusco a q stock qll GMI rating I's Global UniVerSe. companies in GM <.3.0 5 ~s average"GMI rating of highest al? Be ow Average ~ of 3.50 - 5.50 We GM? rating ~ Below Average - of 6.0 - 7.0 ~ Average = GM? rai eg_ GMI rating of 7.5 - 9.5 Ultell gboVe Aver g ^ GM? rating of ~ p'0 Period Ending March 31, Zoos hest Rating > GM?'s Hag a ~ ~ ~ please refer to Appendix for full disclosure. ~o • High Grade Fund's Corporate Governance Ratings 23.1% ~ 11.9% 71.9% 10.3% 83.0 i6.6 % - / 32.1% Average Score 8.2 Average Score 8.5 Average Score 8.4 3.9% 21.6% 1.3%1.3% 60.6% i~ -- _ 1.3 36.6 % 74,6% ® GM I's Highest Rating (10.0) ¦ Well Above Average (7.5-9.5) Average (6.0-7.0) Average Score 7.0 Average Score 7.8 Below Average (3.5-5.5) . , ~ . : ~ ~ ~ , ~ _ ~ ~ R_ 13.3 % 9.0% Irk Well Below Average (<~.0) -- 14.4% ~ 11.9 . ~~r 72.3 % 79.1 Average Score 8.4 Average Score 8.3 Please refer to Appendix for full disclosure. Period Ending March 31, 2008 i~ - i ~ ~ I TRUSC® ~ CAPITAL ~ ~ f Blake Myton i ~ ~ i MA~A~EMENT investment Manager February 14, 2007 Jane Lerner Village of North Palm Beach ' 501 U.S. Highway 1 - . North Palm Beach, FL 33408 Dear Ms. Lerner: Periodically, our auditors require that our clients. provide written acknowledgment as to the current investment directives and/or policy. In that regard, please sign below and return this letter to me. - If you have any questions, please don't hesitate to contact me. Thank you. Very truly yours, Blake Myton - ' Investment Manager BMIces , w hereby a nowledge that the Investment Policy Statement dated May 10, 2005 rema'ns in effect. Dated this 1~ay of February 2007. 300 South Orange Avenue, Suite 1600; Orlando, FL 32801 Phone: 407-237-5816; Fax: 407-237-4726; E-mail: Blake.Myton@truscocapital.com EXHIBIT A VILLAGE OF NORTH PALM BEACH GENERAL EMPLOYEES' PENSION PLAN STATEMENT OF INVESTMENT POLICY GOALS AND GUIDELINES The guidelines and objectives provided below are designed to complement all applicable laws. The purpose of these guidelines is to: 1) Provide the investment manager(s) an accurate understanding of the Trustees' investment objectives and; 2) Indicate the criteria by which the Investment Manager's performance will be evaluated. The primary investment objective of the General Employees' Pension Plan is the protection and preservation of the assets while the secondary objective is long term growth. As a result, the investment manager(s) shall seek the highest possible return while maintaining a prudent regard for legal considerations, fiduciary responsibility, safety of capital and minimum volatility of returns. To accomplish these objectives, the Board of Tilistees has elected to retain professional investment managers. The investment manager(s) retained will be expected to employ a balanced investment strategy (a combination of stocks, bonds and cash). The following guidelines, restrictions and objectives shall apply to each investment manager retained by the Board of Trustees. A. GUIDELINES Although the equity portion of the portfolio shall not exceed 65% of the Fund's total assets (at cost), there is no limit imposed on the fixed income or cash portions of the Fund. It shall be the decision of the investment manager(s) to determine the most appropriate asset nux (within these limits) to achieve the Fund's objectives. 1. EQUITY PORTFOLIO: Any stock purchased for the portfolio (except mutual fiord or commingled . fund shares) must have been listed on a major stock exchange or NASDAQ Investment in any single stock issue shall not exceed 5% of the Fund's total value nor shall the equity portfolio's total value (at cost) exceed 65% of the Fund's total assets. 2. FIXED INCOME PORTFOLIO: The fixed income portion of the Pension Fund shall consist only of U.S. Government, U.S. Government Agency bonds or bonds issued by the corporations listed on major stock exchange or NASDAQ and are rated "BBB" or better by a nationally recognized rating service, except that 10% of the fixed income portfolio may be invested in securities not meeting this restriction. Investment in any single corporate bond issue shall not exceed 5% of the Fund's total value. 3. CONVERTIBLE SECURITIES: Bonds and preferred stocks that are convertible into common stock or that include warrants for the purchase of common stock are allowed only if it meets the above mentioned criteria and restriction of equity and fixed income _ portfolio. 4. MUTUAL FUNDS AND COMMINGLED FUNDS: Investments in mutual fund shares and bank sponsored commingled funds are permissible. However, 90% of the securities held in mutual or conuningled funds must meet the criteria outlined above. 5. CASH EQUIVALENT INVESTMENTS: There is no minimum or maximum amount of Fund assets which may be invested in cash equivalents, subject to the cash flow needs of the Fund. . Assets of the fund should not be in anon-interest bearing account for more than one (1) day, but should be invested in an interest bearing account. Cash or other non-interest bearing assets shall never total more than 10% (at market value) of Fund assets. Assets of the Fund may be invested in a variety of cash equivalent investments including obligations of the United States or any agency thereof which are fully guaranteed as to the payment of principal and interest; money market funds, deposits in S&L associations and banks which are federally insured; corporate obligations with a rating of at least A-1 by Standard & Poor's or P-1 by Moody's. 6. PROHIBITED TRANSACTIONS: All investments in options, futures, municipal bonds, precious metals, private placements, short sales, purchases on margin, real estate and partnerships are prohibited. B. GOALS 1. TOTAL PORTFOLIO: The total portfolio goal shall be to achieve returns over any rolling three-year period in excess of a Target Index. The Target Index for the Pension Fund is defined as a 60% investment in the S&P 500 Index and a 40% investment in Lehman GovernmentlCorporate Bond Index. It should be a further goal of the investment manager(s) that the total portfolio return in any rolling three-year period should meet or exceed the Consumer Price Index plus 500 basis points and rank in the top 40% of a representative universe of other mentioned relative criteria, a further goal of the total portfolio shall be to provide an annualized return. in any rolling three-year period equal 'to or greater than the rate of 9%. 2. EQUITY PORTFOLIO: The goal of the equity portion of the portfolio shall be to achieve a return over any rolling three-year period in excess of Standard & Poor's 500 Index. In addition, it should be a goal of the investment manager(s) that the equity portfolio returns in any rolling three-year period rank in the Top 40% of a representative universe of other equity portfolios. 3. FIXED INCOME PORTFOLIO: The primary objective of the fixed income portfolio is to add stability, consistency, and safety to the total fund portfolio. The secondary objective shall be total return. As a result it should be a goal of the investment manager(s) to achieve a return in excess of the Lehman Government/Corporate Bond Index. It should be a secondary goal of the investment manager(s) that the fixed income portfolio returns over any rolling three-year period rank in the Top 40% of a representative universe of similarly managed bond portfolios. C. REPORTING AND PERFORMANCE MEASUREMENT The investment manager(s) for the Pension Fund shall provide quarterly reports for management purposes. The reports shall include data on investments held, returns - earned and any other information necessary for clarification of the investment manager's results. Any loss, realized or unrealized, on any single investment position (e.g. the stock or bond of any single company, any single government bond or commercial paper, etc.) of more than twenty-five percent (2~%) of the cost or purchase price, shall be disclosed to the Trustees on a quarterly basis by the investment manager(s) by a separate report. Upon reasonable notice, the investment manager(s) shall provide any relevant information requested by the Board of Ti~.lstees. The investment manager's performance shall be evaluated on a quarterly basis in terms of achieving the goals as outlined in this statement. D. POLICY REVIEW It is the intention of the Board of Trustees of the Village of North Palm Beach General Employees' pension plan to. review the Statement of Investment Policy from time to time and to amend them if necessary to reflect any changes in philosophy or objectives. However, if at any time the investment manager believes that the specific objectives defined herein cannot be met, or that the guidelines unnecessarily constrict performance, the Trustees shall be notified. Chai man, Board of Trustees Village of North Palm Beach General Employees' Pension Plan Date Tr~~~Capital Manag ent Date z ~- anon e Infirm ~~~Q~ur ant rt risks, and 1 ~ p ectlves, Funds can 's investment obl eWorth consider the fund about the R'?co please read the octant informa~W.ridgeworth• rospeCtus. An investor of er~ mp visiting cared by a p money. 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