HomeMy WebLinkAbout1991-06-27 - Agendas - Final•
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FIRE PENSION
AGENDA ITEMS
FOR
6-27-91
`5 . \NS
PFG.. FAYETTEVILLE EIRE P & R tit,. _ 6/21/91,
FA
107- YEPR =��,�s- e( ;' i if r a
EQUITY FIXED 1St
CASH & EQUIV TOTAL ---
CURRENT VALUE * 1,210,571 * 882,898 * 202,982 * 2,296,451
ASSET MIX * 52.7% * 38.4% * 8.8% * 100.0%
OLD * 3.3% * 8.47.. * ea5. 7% * 5.4%
T BASIS * 1,138,764 * 844,912 * 20'2,981 * 2,186,657
F TOTAL * 52.17. * 38.6% * 9.3% * 100.0%
COST YIELD * 3.5/. * 8.6% * 5.7% * 5.77.
C GAIN * 69,147 * 25,943 * 1 * 95,092
GAIN * 6.1% * 3.1% * 0.07. * 4.3%
ACCRUED INCOME * 2,659 * 12,042 * 0 * 14,701
* * * *
-- TARGETS +-- STOCK AVCS —+---- FIXED INC AVCS ----+---- PERFORMANCE
* * EXCL INCL *
EQUITY 55.0% * F'/E16.80 * 0 &E C: P. E * SINCE TOTAL RETURN
FIXED 40.0%. * BETA 1.07 * YTM 7.99'%. 7.57%. *
* ERNGR 21.497—* DUR 5.20 4.23 * 1/18/90 12.09%
CASH BALANCES * DIVGR.' 14.627.-* COUP 8.427. 7.91% * 12/31/90 8.347.
(PRIM/INC:) * MKTCAP 12436 * MAT 8.32 6.76 * 03/31/91 1.13%
10,960.71 * YTD 13.737% * MDY 9.92 * 05/31/91 —1.487.
192,020.54 * MTD —2.53% * (TSY ) * 06/14/91 —0.41%
* DLY 0.26%. * SW 9.92 * 06/20/91 0.10%
202,981.25 * LTRS 0.97 * (TSY ) *
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SECTOR REVIEW
107-FAYEPR --- FAYETTEVILLE FIRE P & R 06/21/91
DESCRIPTION
AMOUNT COST LAST VALUE XEQT
CONSUMER NON -DURABLES:
PHILIP MORRIS COS INC
SEAGRAM LTD
AMERICAN HOME PRODS CORP
MCDONALDS CORP
ARCHER DANIELS MIDLAND C
GIBSON GREETINGS INC
900 38.111 65.125 58613 4.8
400 76.093 107.250 42900 3.5
600 61.198 60.375 36225 3.0
1100 31.194 32.125 35338 2.9
1365 18.706 24.125 32931 2.7
900 22.687 27.7551 24975 -.1
TOTAL CONSUMER NON -DURABLES 230981 19.1
CONSUMER DURABLES:
WHIRLPOOL CORP 1200 33.194 32.875 39450 3. 3
MELVILLE CORP - A/bvJ 700 44.693 50.500 35350 2.9
TOTAL CONSUMER DURABLES 74800 6.2
INTERMEDIATES:
ALUMINUM CO AMER
QUANEX CORP
SCOTT PAPER CO
CHAMPION INTL CORP.for
500 63.241 69.125 34563 2.9
1800 14.609 16. 250 99950 2.4
600 44.394 44.000 26400 L.2
900 28.530 27.750 24975 2.1
TOTAL INTERMEDIATES 115188 9.5
LNITAL GOODS:kk to"
TRINITY INDS INC DEL •r pse 1500 26.148 29.125 43688 3.6
HARRIS CORP DEL �K 1500 27.005 27. 41813 3.6
INTERNATIONAL BUSINESS M ✓ 400 102.954 99.625 39850 3.3
WESTINGHOUSE ELEC CORP �/^ 1200 36.395 28.875 34650 2.9
MOTOROLA INC: {Mar?.
500 55.713 66.000 33000 2.7
BOEING coY 700 48.321 46.875 32813 2.7
UNITED TECHNOLOGIES CORP 700 46.376 45.375 31763 2.6
CATERPILLAR INC DEL 600 56.058 50.000 30000 2.5
TOTAL CAPITAL GOODS 287575 13.8
ENERGY:
ROYAL DUTCH PETE NY RE NY REG GLDR 5
AMERADA HESS CORP f n.h
SOC NATL ELF ACQUITA N SPONSORED ADR
NORSK HYDRO A S SPONSORED ADR
DRESSER INDS INC - AlaQ
aigi
500 73.541 78.375 39188
3 r- -
l.
7C12I < G.5.,36 52.375 366 .
1100 28.363 19.750 357010 2.9
1000 25. 392 28.625 28625 2.4
1400 21.910 10.375 28525 2.4
TOTAL ENERGY 168700 13.9
MISC INDUSTRIALS:
DEUTSCHE BANK A G AMER. DEP. RECEIPT
�
NSPORTAT I ON:
LLOW FREIGHT SYS INC D
BRITISH AWYS PLC ADP. 2ND INSTAL
TOTAL TRANSPORTATION
80 482.590 390.860 31'269 2.6
800 25.533 31.875 25500 2.1
900 33.268 27.375 24638 2.0
51:1138 4.1
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SECTOR REVIEW
107-FAYEPR
DESCRIPTION
FAYETTEVILLE FIRE P & R
AMOUNT
FINANCIAL:
FEDERAL NATL MT'3
ST PAUL COS INC
LOEW'S CORP -
FIRST OF AMER BK
ASSN
- GNG Gas
CORP
TOTAL FINANCIAL
PUBLIC UTILITIES:
TELEFONICA DE ESF'ANA S SPONSORED ADR
NICOR INC
HOUSTON INDS INC
TEXAS UTILS CO
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TOTAL PUBLIC UTILITIES
COST
1000
700
300
100(
1000
600
700
600
34.105
73.467
106.957
24.570
23.964
40. 743
33.404
34.873
TOTAL SECURITIES
ACCRUED INCOME
TOTAL EQUITIES
LAST
06/21/91
VALUE %EQT
48. 500
63.250
101.000
28.000
26.250
43. 500
35.375
35.125
48500
44275
3030 i
28000
4.0
3.7
._.5
Ci
+• .
151075 12.5
26250
26100
24763
21075
1.7
'38188 8.1
1207912 99.8
2659 0.2
1210571 100.0
r
illIC27r:tLMED
CHARLES W. QUMLER
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NM CAPITAL MANAGEMENT, INC.
INVESTMENT COUNSEL
7510 MONTGOMERY NE, SUITE 201 505/B8B-9500
ALBUQUERQUE, NM B7109 FAX 505/1888-0874
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NM CAPITAL
MANAGEMENT INC.
New Mexico (cover)
An environment of clear thought and vision; ingredients
vital for profitable investments.
NM Capital Management
Since 1977, NM Capital Management has been distinguished
by clear and consistent investment ideas and superior investment
management. It is owned and operated by active employees
providing strong investment discipline in the management of
stock, bond and balanced portfolios. NM Capital Management is
devoted to superior investment performance with low risk, and
the understanding that communication and personalized service
are a necessity.
NM Capital Management's
Investment Process
Client Goals and
Objectives Economic Factors
Macroeconomic
Overview
Risk Tolerance
Income Goals
Growth Needs
Market
Research
and
Investment
Policy/Strategy
Committee Meeting
Values in Stocks
Opportunities in Bonds
Stock Screen
Client Portfolio
Asset Mil
Sector Diversification
Stock Selection
Bond Maturities
& Issuer
Review
Daily
Bi -weekly
Monthly
Investment Philosophy
While providing consistent investment returns throughout
economic and financial market cycles, preservation of capital
forms the basis of our investment philosophy. Our investments
emphasize value with attention to fundamentals. Our value -
oriented, long-term investment philosophy is one of the reasons
NM Capital Management ranks among the top performing invest-
ment managers nationally.
We are committed to excellence through a strictly disciplined
investment process because we understand that our continued
success is dependent upon satisfaction with investment returns
and the quality of our service.
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Rock art is found throughout the
American Southwest. Petroglypbs
(etchings) and rock art (paintings)
were methods of documenting the
social as well as religious life of
early man.
Understanding the meaning of
early man's primitive etchings can
be confusing to the uninitiated
and creates a very interesting
parallel to tbe expertise needed to
understand today's sophisticated
capital markets.
Management Group
Gerald S. Epstein
Mr. Epstein, President and Founder of NM Capital Management,
has over 20 years of investment experience and is a member of
the Investment Policy an4 Strategy Committee.
Thomas S. Christopher, CFA, CIC
Mr. Christopher, who is a Principal and Portfolio Manager, manages
stock, bond and balanced accounts. He has over 20 years of invest-
ment experience and is a member of the Investment Policy and
Strategy Committee.
Charles H. Womack
Mr. Womack is a Principal and Portfolio Manager with over 20
years of investment experience. He manages both stock, bond and
balanced accounts. He is a member of the Investment Policy and
Strategy Committee.
John E. Severson, CFA
Mr. Severson is a Portfolio Manager and Client Service Represen-
tative. He has over 7 years of investment experience and is a
member of the Investment Policy and Strategy Committee.
Charles W. Dumler
Mr. Dumler is a Client Service Representative and is also respon-
sible for directed investment research for a number of market
segments. He has over 18 years of investment experience and is
a member of the Investment Policy and Strategy Committee.
Jacques L. DeVore
Mr. DeVore is a Vice President and a member of the Investment
Policy and Strategy Committee. He is responsible for selected invest-
ment research as well as client service and marketing. Mr. DeVore
has over 7 years of investment management experience.
David M. Stumpf
Mr. Stumpf is an Assistant Portfolio Manager. His responsibilities
include portfolio management and research. He has over 7 years
of investment experience and is a member of the Investment Policy
and Strategy Committee.
Beverly A. Jones
Ms. Jones is Vice President of Administration and is responsible for
compliance, blue sky reporting, requests for proposals and new
accounts. She has over 12 years experience in client relations and
administration in the investment industry.
Renee M. Humphrey
Ms. Humphrey is Vice President of Operations and is responsible
for the management of all trading and portfolio accounting systems.
She fias over 12 years experience in the securities industry.
Kristin Kruger -Ernst
Ms. Kruger -Ernst, as Comptroller, is responsible for corporate
accounting and financial analysis. She also monitors portfolio per-
formance for reporting to clients and consultants. Ms. Kruger -Ernst
has over 5 years experience in the investment management industry.
Performance Notes
The computation of results of portfolio management by NM Capital
Management Inc.:
(a) Represents the median quarterly returns compounded for the periods indicated (pre-tax)
for accounts under management for one full quarter (1979-1986) and two full quarters (1987-
1990). Minimum equities of $200,000 from 1988; minimum fixed income of 5200,000 for 1990.
(b) Represents a time -weighted measure of percent change in the total market value after
considering tbe effect of additions and withdrawals of capital.
(c) Gives effect to dividend income and interest income and tbe deduction of brokerage
commission, but does not give effect to management fees. The investment advisory fees charged
are described in Part 11 of WCM's Form ADV.
(d) The following figures reflect tbe deduction of investment advisory fees actually charged tbe
median accounts for 1990. Prior to 1990, performance figures reflect the deduction of a "model"
advisory fee.
EQUITY: 0.1% (1981), 25.3% (1982). 31.4% (1983), 9.2% (1984), 37.6% (1985), 16.3% (1986).
2.3% (1987). 13.1% (1988), 30.1% (1989), 16.81% (1990). BALANCED: 5.0% (1981). 31.1%
(1982). 27.0% (1983), 9.6% (1984). 29.1% (1985). 14.2% (1986). 1.6% (1987). 8.7% (1988).
19.7% (1989), f0.31% (1990). FIXED: 34.5% (1982), 9.4% (1983). 11.6% (1984), 22.9% (1985),
15.3% (1986), 11.451% (1987), 7.1% (1988). 13.0% (1989), 8.4% (1990).
Because tbe stock market is influenced by a variety of changing conditions, these returns may
not be representative of future portfolio management.
NOTE:: Consultants presenting the "gross performance results" to a client should advise him of
the above disclosures.
Equity Selection Criteria
Low Risk
Average Beta (volatility)
lower than Stock Market's
Stocks That Pay Dividends
Low Debt to Capitalization
Large Capitalization Stocks
Strong Balance Sheet
Strong Value
Low Price Earnings Ratio
Low Price to Book Ratio
Superior Cash Flow
Growth
Potential
Earnings Growth,
above Market
Dividend Growth,
above Market
High Quality Earnings
Fixed Income Selection
Active fixed income management provides both total return
and reduced volatility.
"A" rated to "AAA" rated bonds.
Diversification through quality, issuer, maturity, yield and
coupon rate.
Average maturity and diversification — to reduce risk and
maximize return based upon economic and interest rate
expectations.
NM Capital Management's investment strategies reflect the
firm's collective philosophy. Investment decisions are developed,
guided and implemented through the Investment Policy and
Strategy Committee.
Portfolio managers are responsible for new investment oppor-
tunities which are discussed at weekly strategy meetings. Data
on each investment opportunity is then analyzed to ensure that
such companies comply with NM Capital Management's value
screens. When agreement on new investments is reached, the
new target investments are included on the accepted buy list.
This process supports the corporate philosophy and ensures
that individual managers adhere to the value orientation of
NM Capital Management.
(Thousands)
$500
• $400
$300
$200
$100
•
$0
NMCM (%)
S&P 500 (%)
Inflation (%)
(Thousands)
$500
$400
$300
$200
$100
$0
EQUITY RETURNS
Equity Account Median (Growth of $100,000 - January 1981 - December 1990 = $444,195)
81
1.1
-4.9
8.9
82
26.5
21.5
3.9
83
32.6
22.5
3.8
84
10.2
6.2
3.9
85
38.9
31.6
4.0
86
17.5
18.6
1.4
87
3.4
5.3
4.3
88
14.2
16.6
4.1
89
31.3
31.6
4.8
BALANCED RETURNS
Balanced Account Median (Growth of $100,000 - January 1981- December 1990 = $409,152)
90
-6.0
-3.1
6.6
IMMIMPIPir
WrA:
sumemal
NMCM (%)
Balanced Index (%)
Inflation (%)
81
6.1
-0.2
8.9
82
32.3
23.5
3.9
83
28.2
17.7
3.8
84
10.7
8.3
3.9
85
30.4
28.6
4.0
86
15.3
16.5
1.4
87
2.6
3.4
4.3
88
9.7
13.2
4.1
89
20.9
21.6
4.8
FIXED INCOME RETURNS
(Thousands) Fixed Income Account Median (Growth of $100,000 - January 1982 - December 1990 = $315,318)
$500
$400
$300
$200
$100
$0
NMCM (%)
SLGCI (%)
Inflation (%)
82
13.6
12.3
3.9
83
11.2
10.7
3.8
84
11.4
11.0
3.9
85
11.2
10.5
4.0
86
8.9
9.0
1.4
87
7.3
8.0
4.3
88
10.1
9.5
4.1
89
11.4
10.9
4.8
90
9.4
9.2
6.6
90
0.6
1.0
6.6
NMCM EQUITY
S&P 500
INFLATION
NMCM BALANCED
BALANCED INDEX
INFLATION
NMCM FIXED INCOME
SHEARSON LEHMAN
INTERMEDIATE BOND INDEX
INFLATION
NM CAPITAL
MANAGEMENT INC.
505-888-9500
7510 Montgomery NE, Suite 201
Alba uer ue New M • xi • . (
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Nelson's Fourth Annual Survey April 15, 1991
"The 100 best
money managers
you can hire"
Results of the 4th Annual Survey of Investment
Managers conducted by Nelson Publications and
the Nelson Investment Manager Database
NELSON PUBLICATIONS
1 Gateway Plaza, Port Chester NY 10573, 914 937-8400
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NELSON'S 25 TOP -PERFORMING INVESTMENT MANAGEMENT FIRMS
Portfolio Category: Balanced Portfolios
Firm Size: Mid -Size Firms ($200 Mi.- $1Bil. Managed)
Time Period Ranked: 10 -Year Annualized Rate of Return
Lists in descrndingorder thehiylust rates of return reported by the managers for this portfolio
category, firer size group and time period. Please refer to Secfton 2 - Manager Profiles, for the source
of performance data presented bymrhfirm (data item 18).
Firm (Location) / Performance Composite
BALANCED
MID-SIZE FIRMS
10 -YR ANNUALIZED
1990 3 Yr. 5 Yr. 10 Yr.
Caldwell & Orkin Inc. (Atlanta, GA)
All taxable and tax-exempt discretionary balanced portfolios.
Dane, Falb, Stone & Company (Boston, MA)
All balanced accounts
Rittenhouse Financial Services (Philadelphia, PA)
Institutional discretionary accounts
Spare, Tengler, Kaplan & Bischel (San Francisco, CA)
All fully discretionary accounts greater than $5MM
Sound Shore Management, Inc. (Greenwich, CT)
All balanced accounts, including cash reserves.
Alpine Capital Management (Denver, CO)
Accounts over $100,000 under management over 6 months
NM CapitalManagement(Albuquerque,
Same as above but with t Ieast 10 % in bonds atbeghudng of period.
Investment Counselors Inc. (St. Louis, MO)
All discretionary tax-exempt balanced accounts
Capstone Asset Management Co. (Houston, TX)
50% Core Growth/50% Fixed Income - Composite of all accounts in this style .
Capstone Asset Management Co. (Houston, TX)
30% Core Growth/70% Fixed Income - Composite of all accounts in this style
Regent Investor Services (White Plains, NY)
Balanced Accounts
Wilson, Kemp & Associates, Inc. (Detroit, MI)
Composite of balanced accounts
Cowen Asset Management (New York, NY)
All Tax Exempt Accounts > $500,000
James Investment Research (Alpha, 01-1)
Arithmetic average of all ret. funds under management reviewed yearly by
Deloitte Touche.
Fiduciary Management Inc. (Milwaukee, WI)
60/40 weighting of FMI Equity and Fixed Income Composites
Towneley Capital Management (New York, NY)
Institutional Balancedgd
Montag & Caldwell Inc. (Atlanta, GA)
Balanced Funds: All discretionary balanced employee benefit plans with
values over $1 million
Campbell Reed Conner & Birdwell (Los Angeles, CA)
Balanced: Average of all institutional accounts
Winrich Capital Management (Lake Forest, CA)
Balanced composite.
Stratton Management Co. (Plymouth Meeting. PA)
Largest, fully discretionary, tax advantaged, institutional accounts.
Campbell, Newman, Pottinger & Associates (Mequon, WI)
All fully -discretionary accounts
Georg, a D. Bjurman & Associates (Los Angeles, CA)
Fully Discretionary Accounts
Keystone Investment Management Corp. (Boston, MA)
All discretionary, tax-exempt, employee -benefit accounts greater than $5
million.
Chelsea Management Co. (Los Angeles, CA)
Internal compilation; based on cumulative total of all accounts.
Financial Counselors Inc. (Kansas City, MO)
Dollar weighted average of tax-exempt portfolios over $5 million.
3.66% 13.84% 13.59%
2.39 1232 13.50
3.90 15.03 13.58
4.66 12.10 12.04
-1.30 11.88 11.13
-2.40 11.01 12.89
0.55 10.07 9.54
2.70 14.89 12.74
3.46 12.45 12.89
4.76 11.24 12.25
4.40 12.43 12.48
2.72 11.87 11.63
5.49 8.70 10.03
1.50
-0.10
0.04
12.76
11.28
8.74
4.70 12.19
6.50 13.83
0.97 9.48
-3.92 10.19
6.74 14.09
8.28 13.36
0.30 10.06
-0.10 1121
5.11 11.47
12.90
9.03
8.88
11.89
12.93
9.45
9.39
13.31
12.31
11.02
11.19
10.53
16.99%
16.74
16.73
15.75
15.34
15.16
15.13
15.11
14.79
14.72
14.54
1450
14.32
14.19
14.09
14.00
13.90
13.76
13.62
13.55
13.49
13.39
13.32
13.30
13.22
Source: Nelson's Investment Manager Database; 01991 Nelson Pubrcatioos, Pon Chester, N.Y. 10573
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