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South Carolina Firefighter’s Retirement Plan Investment UpdateRetirement Plan – Investment Update
August 2 2011August 2, 2011
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Introduction and overview
Agenda
Introduction and overview
Plan performance and feesp
Economic and market outlook
Questions and answers
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Portfolio performanceDecember 31, 2010 – June 30, 2011
3.60%3.40%
3 00%
4.00%
1.50%2.00%
3.00%
50
1.00%
0.00%
Conservative Growth Moderate Growth Growth
* All returns are net of fees
For more performance information please visit www.scfirefighters.com
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Portfolio performanceDecember 31, 2010 to June 30, 2011
P tf li O ti N t R tPortfolio Option Net Return
Moderate Growth 3.60%
Moderate Growth Benchmark 4.06%
Conservative Growth** 1.50%
C i G h B h k 2 02%Conservative Growth Benchmark 2.02%
Growth 3.40%
Growth Benchmark 3.79%
•Benchmarks are a fixed weight blend consisting of global stock (as measured by a mix of the S&P 500 Total Return and MSCI EAFE Index) and fixed income (as measured by the Citigroup 1-3 Year TreasuryTotal Return and MSCI EAFE Index) and fixed income (as measured by the Citigroup 1-3 Year Treasury Index ** Conservative Growth inception is 1/31/11
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Portfolio performanceJune 30, 2010– June 30, 2011
31.51%
30.00%
35.00%
19.39%
15 00%
20.00%
25.00%
5.00%
10.00%
15.00%
0.00%
Conservative Growth Moderate Growth Growth
* All returns are net of fees
For more performance information please visit www.scfirefighters.com
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Q fQuick facts
141 participating departments141 participating departments
~ 8,628 participants
In 2010 there were 578 withdrawals totaling $1,944,108.86
In 2010 there were 140 deposits totaling $3 381 618 28In 2010 there were 140 deposits totaling $3,381,618.28
Current portfolio value $36, 749,376 (6/30/2011)
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FeesJune 30, 2010 – June 30, 2011
Advisor Fee % of total plan assets
Abacus Planning Group $111,000 0.32%
Underlying managers $174,665.45 0.50%
Nexsen Pruet $11,532.63 0.03%
Toledano and Associates $330,542.39 0.95%
T t l f $602 529 66 1 80%Total fees $602,529.66 1.80%
7Underlying manager expense and fee as a percent of total plan assets are based on 12/31/2010 portfolio values
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SCFA RETIREMENT PLAN
Sample Investment FeesPortfolio Value as of 6/30/11$34,816,776.08
Annual AnnualWeight in Portfolio Investment Ticker Amount Trading Fee Expense Ratio Expense Ratio $
11.5% DFA US LARGE COMPANY DFUSX $4,001,032.60 $25.00 0.10% $4,001.03
3.0% DFA US LARGE VALUE DFLVX $1,048,352.22 $25.00 0.28% $2,935.39
4.8% DFA US MICRO CAP DFSCX $1,654,245.21 $25.00 0.52% $8,602.08
3.9% ROYCE MICRO CAP INV CLASS RYOTX $1,369,659.58 $25.00 1.50% $20,544.89
3.6% DFA INTERNATIONAL LARGE COMPANY DFALX $1,239,498.11 $25.00 0.30% $3,718.49
4.7% ARTISAN INTERNATIONAL ARTIX $1,619,172.30 waived 1.23% $19,915.82
4.6% HARBOR INTERNATIONAL HAINX $1,600,043.99 $25.00 0.79% $12,640.35
5.1% DFA INTERNATIONAL SMALL COMPANY DFISX $1,789,287.40 $25.00 0.56% $10,020.01
4.2% DFA EMERGING MARKETS DFEMX $1,455,748.67 $25.00 0.60% $8,734.49
24.3% INDIVIDUAL BONDS $8,457,419.08 $25/bond N/A $0.00
4.4% PIMCO DIVERSIFIED INCOME INST CLASS PDIIX $1,534,264.88 $25.00 0.75% $11,506.99
$ $ $4.1% PIMCO TOTAL RETURN PTTRX $1,440,796.03 $25.00 0.46% $6,627.66
3.4% DFA INTERNATIONAL REAL ESTATE DFITX $1,180,051.36 $25.00 0.41% $4,838.21
3.1% DFA REAL ESTATE SECURITIES DFREX $1,062,957.44 $25.00 0.33% $3,507.76
2.8% PIMCO COMMODITY REAL RETURN INST CLASS PCRIX $976,492.21 $25.00 0.74% $7,226.04
2.9% VAN ECK GLOBAL HARD ASSETS GHAIX $1,026,518.08 $25.00 1.00% $10,265.18
2 0% GATEWAY FUND GATEX $706 404 94 waived 0 94% $6 640 212.0% GATEWAY FUND GATEX $706,404.94 waived 0.94% $6,640.21
1.8% MERGER FUND MERFX $623,121.31 waived 1.59% $9,907.63
2.3% CALAMOS CONVERTIBLE GRW AND INCOME CVTRX $783,789.55 waived 1.13% $8,856.82
1.9% CALAMOS MARKET NEUTRAL CVSIX $670,767.19 waived 1.21% $8,116.28
1.7% HUSSMAN STRATEGIC GROWTH HSGFX $577,153.93 $25.00 1.05% $6,060.12
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Total Mutual Fund Expense $300 to $800 $174,665.45 0.50%Abacus Planning Fee Expense $111,000.00 0.32%Total Fee $285,665.45 0.82%
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What helped and what hurt portfolio returnsDecember 31, 2010 – June 30, 2011
US Large Company Value Stocks
What helped returns
US and International Real Estate Securities
Rebalancing
United States Treasury Bonds
What hurt returns
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Equity hedging strategies
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Emerging Markets
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Rebalancing portfolio investments
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fThinking about the future
Wh t i t i ht i fl ti h thWhat impact might inflation have on the portfolio?
What are the headwinds we are facing?
What are the opportunities for the portfolio?
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Topic 2Components of the consumer price index (CPI)
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Topic 2
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US Stock Flows and market performance
US Stock fund flows and market performance
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Provide portfolio growth while minimizing associated risk
Our goals in working with the Firefighters’ Plan
Provide portfolio growth while minimizing associated risk
Provide clear, comprehensive reporting to the Plan trustees and participants on a regular basisand participants on a regular basis
Minimize investment expenses
Work closely with the Plan’s Third Party Administrator, Toledano and Associates, to ensure timely and accurate service and reporting to individual participantsp g p p
Communicate effectively with plan participants regarding the mechanics of the plan, performance of the investments, and other financial planning topics that may be of interest
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South Carolina State Firefighters’ Association Plan Sponsor
Advisors and partners
South Carolina State Firefighters Association – Plan Sponsor
Toledano and Associates – Third Party Administrators
Abacus Planning Group, Inc. – Registered Investment Advisor
Charles Schwab and Company, Inc. – Custodian
Joel Stoudenmire – ERISA attorney
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http://www.scfirefighters.org
Website
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We at Abacus feel truly honored to have the opportunity of working with the South Carolina Firefighters’ Association the Trustees and theFirefighters Association, the Trustees and the participants and look forward to continuing to serve each of you.serve each of you.
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