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HomeMy WebLinkAbout1998-03-26 - Agendas - FinalAGENDA FIREMEN'S PENSION AND RELIEF BOARD Thursday, March 26, 1998 11:00 a.m. City Administration, Room 326 1. Approval of the February 26, 1998 meeting. 2. Approval of the April 1998 Pension List. 3. Investment report, Merrill Lynch. OLD BUSINESS 4. Questions regarding Millage rollback. NEW BUSINESS • 5. Drop Applications 6. Other business MINUTES OF FIRE PENSION BOARD A meeting of the Fayetteville Firemen's Pension and Relief Board was held on Thursday, February 26, 1998 at 11:00 a.m., in room 326 of the City Administration Building, 113 W. Mountain, Fayetteville.Arkansas. Present: Marion Doss, Bill Morris, Darrell. Judy, Ron Wood, Pete Reagan. and Heather Woodruff (City Clerk). Absent: Mayor Fred Hanna CALL TO ORDER Marion Doss called the meeting to order. APPROVAL OF MINUTES Bill Morris moved to approve the minutes. Pete Reagan seconded the motion. The motion carried unanimously. PENSION LIST Pete Reagan moved to approve the pension list. Darrell Judy seconded the motion. The motion carried unanimously. OLD BUSINESS Mr. Morris stated he had a correction to make to the old business. He had stated that Farmington was paying their volunteers $90.00. Since that meeting he had meet with Chief Pike of Farmington. Chief Pike had informed him that Farmington was paying $70.00 a month to the volunteers. In 1978 the State of Arkansas had passed a law stating any fireman serving over 20 years was entitled to receive $10.00 a month rather than $5.00 a month. Mr. Ross replied the law was not retroactive. The law applied to people retiring after that date. The full pay was $20.00 a month for each year over 20 years. Mr. Morris questioned if Fayetteville had any firemen that had retired after 1978 that had served more than 20 years. Mr. Ross believed all of the retired firemen were receiving the correct amount. • Fire Pension Board February 26, 1998 Page 2 ATTORNEY GENERAL OPTIONS Mr. Doss commented the only section which could affect them was the section regarding the Drop participance voting as active or retired members. Mr. Reagan stated the item was being revisited by the Attorney General. He believed the firemen on the Drop Plan were still contributing to the fund. NEW BUSINESS Drop applications Mr. Doss stated there were two applicants John Dill and Tommy Gage. Mr. Reagan asked for the Drop Application to be revised to include a sign off procedure. He felt a third line should be added to the application. The signature should include the fire chief, finance and the applicant. • John Dill Mr. Reagan moved to approve John Dill's Drop application. Mr. Wood seconded the motion. The motion carried unanimously. Tommy Gage Mr. Reagan moved to approve Tommy Gage's Drop application. Mr. Wood seconded the motion. The motion carried unanimously. Mr. Doss added he had verified 6% had been held out of Mr. Gage's EMT pay. OTHER BUSINESS • Mr. Reagan expressed concern about the roll back of Millage. He explained the city only received one mill, which was divided between the Fire Pension and the Police Pension. He added if the millage were lost then the firemen would have to petition for an election to get the Fire Pension Board February 26, 1998 Page 3 millage back. He thought the election would cost a considerable amount of money. He suggested spending money to educate the public on why the city needed the money, rather than loose the millage and have to petition for an election. He suggested the fire pension spend some money on educating the public on the need for the millage. Mr. Doss questioned if it was legal for the Fire Pension to spend money on education. He asked for the City Attorney to be present at the next meeting. The meeting adjourned at 11:30 a.m. 1 • FIREMEN'S RELIEF AND PENSION FUND APRIL 1998 as THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH OF APRIL 1998. YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE PAYEES, IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED. EMP# NAME 43 BAIRD, RICHARD H. 2 BLACKARD, PAUL 63 BOLAIN, ANN 44 BOUDREY, BETTY MRS. 45 BOUDREY, HOWARD 49 BOUDREY, JACK 4 CARL, FLOYD JR 5 CASELMAN, ARTHUR 57 CATE, ROY 6 CHRISTIE, ARNOLD 8 COUNTS, WAYNE 61 DAVIS, BEULAH F. 10 DEARING, EMMA MRS. 11 FARRAR, ALONZO 38 FRALEY JOSEPH G. 33 HARRIS, BILL C. 34 HARRIS, JAMES E. 64 JORDAN, CHARLIE 47 JUDY, DARRELL 37 KING, ARNOLD D. 54 KING, ARVIL 12 LANE, HOPE MRS 13 LAYER, MERLIN 14 LEE, HAROLD 51 LEWIS, CHARLES 60 LEWIS, MARVIE 55 LEWIS, ROGER 40 LOGUE, PAUL D. 50 MASON, LARRY 39 MC ARTHUR, RONALD A. -35 MC CHRISTIAN, DWAYNE 15 MC WHORTER, CHARLES 29 MILLER, DONALD 42 MOORE, JAMES H. 17 MORRIS, WILKIE MRS. 16 MORRIS, WILLIAM H. 62 MORRISON, ELIENE 48 MULLENS, DENNIS W. 58 OSBURN, EDWARD 46 OSBURN, TROY 53 POAGE, LARRY 20 POLLY, GRACE A. MRS. 22 REED, JOE 30 SCHADER, EARVEL 41 SCHADER, TROY 23 SKELTON, BURL L. 24 SKELTON, LEE 56 SKELTON, ROY 36 SPRINGSTON, CARL 25 STOUT, ORVILLE 27 TUNE, MILDRED MRS. 26 TUNE, BILLIE SUE GROSS FED. TAX ST. TAX NET 1,191.06 100.00 55.00 55.00 1,641.57 180.00 1,383.66 1,088.98 287 68 55.00 75.00 1,182.35 55.00 55.00 377.50 55.00 707.84 1,171.39 100.00 55.00 55.00 1,525.81 1,088.98 1,008.97 100.00 1,131.00 130.00 55.00 417.50 55.00 1,088.98 570.91 570.92 50.00 1,902.69 200.00 11078.16 78.16 1,159.11 100.00 55.00 30.00 886.19 80.00 863.01 125.00 55.00 55.00 70.00 80:00 1,448.31 -1,646.01 160.00 1,255.55 65.81 1,556.57 210.00 55.00 55.00 923.01 1,007.92 57.00 692.50 42.50 390.00 1,626.02 126.02 609.88 50.00 590.36 50.00 80.00 80.00 1,091.06 55.00 55.00 1461.57 1,383.66 50.00 751.30 55.00 75.00 1,182.35 55.00 55.00 377 50 55.00 707.84 10.00 1,061.39 55.00 55.00 1,525.81 1,088.98 10.00 898.97 1,001.00 55.00 417.50 55.00 1,088.98 570.91 10.00 510.92 25.00 1,677.69 1,000.00 1,059.11 25.00 806.19 738.01 55.00 55.00 70.00 80.00 1,448.31 1,486.01 1,189.74 60.00 1,286.57 55.00 55.00 923.01 950.92 650.00 390.00 50.00 1,450.00 9.88 550.00 540.36 80.00 80.00 28 WATTS, DONALD 59 WATTS, WAYNE 52 WRIGHT, RANDALL DROP EMPLOYEES JOHNSON, ROBERT MILLER KENNETH WARFORD,THOMAS BONADUCE, MICHAEL DILL, GARY GAGE, TOMMY 400.00 1,191.51 1,128.98 96.17 150.00 400.00 1.095.34 978.98 37,713.20 2,568.34 224.88 34,919.98 2,042.47 2,129.57 1,659.70 1,975.38 2,396.21 1,716.25 WE, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE JUST AND CORRECT; THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID; THAT THE PENSION PAYMENTS SO CHARGED ARE IN ACCORDANCE WITH THE ACTIONS OF THE BOARD OF TRUSTEES OF THE FIREMEN'S RELIEF AND PENSION FUND; THAT THE SERVICES OR SUPPLIES FURNISHED, AS THE CASE MAY BE, WERE ACTUALLY RENDERED OR FURNISHED; AND THAT THE CHARGES MADE THEREFORE DO NOT EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR SERVICES OR SUPPLIES. SECRETARY CHAIRMAN AND PRESIDENT ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) )SS SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF , 1998. NOTARY PUBLIC MY COMMISSION EXPIRES: • • • 1 • • FAYETTEVILLE FIREMEN'S PENSION AND RELIEF FUND DEFERRED RETIREMENT OPTION PLAN (DROP) MEMBER ELECTION FORM I hereby elect the DROP as my retirement benefit option from the pension plan in place of normal retirement benefit. I understand that m electing DROP, I have agreed to the following statements: 1. The amount of the DROP payments will be $.91-6-5-6% ¥O per month. This amount includes all service and age 60 bonuses that I have earned to this date. This amount is the same as if I retired today. 2. I understand that the monthly benefit that I will receive at the end of the DROP penod is the exact same amount stated in Item 1, regardless of any pay raises I receive or extra years of service I may work. 3. I understand that at the end of the DROP period I will have the option to receive the DROP account as a lump sum or convert the DROP account to a monthly annuity account or any other method of payment as provided for in the current Rules and Regulations of DROP. 4. I understand that the DROP account will remain in the pension fund until withdrawn in accordance with the Rules and Regulations of the DROP plan I do not have the ability to withdraw from the DROP account until the time of my departure. // // G p 5. I have elected to begin the DROP on ` I/ ' / O . DROP will end at the earlier of when I resign or 9- J- 9 05 , (5 years from the above date, unless authorizations to participate in DROP shall be specifically extended by the Arkansas Statutes). 6. I understand that neither the pension fund nor the Department has given any tax advice concerning the way the DROP account is taxed. I have, or will consult, my own tax advisor for this information. 7. I have read the Rules and Regulations pertaining to DROP. 'Two exceptions to these rules: Age 60 bonuses (for members with over 25 years of service when they go on to DROP) begin at age 60 whether still on DROP or not; raises given to retirees are also given to DROP participants. 5/1-7, Member Signature Date ktelw.J L Souse Signature Date Plan Representative Date • FAYETTEVI LLE FIREMEN'S PENSION AND RELIEF FUND DEFERRED RETIREMENT OPTION PLAN (DROP) MEMBER ELECTION FORM (Beneficiary Designation) Li4R2/ FRE E.OL5 5'3-502-1339 8-02..3- q7 Member SSN - DOB 59D j -EA /l,4pE .c2R. 702709 Address City State Zip f4C/k/r- ICRe lD G E Spouse A7 71//,%oNr, Sf Years of Service y3U -09-6/k/ i - G.24 -$0 SSN DOB 3-c3- 70 Date of Employment Witness Date DESIGNATION OF BENEFICIARY I hereby designate the following beneficiary to receive any benefits from the DROP plan if I die prior to my termination of employment: J2tCK,E ,C/r,CDG E /i//Fr Name Relationship / fig -9g ignature . r ember Date Please select one of the following (if spouse is not selected as beneficiary). I certify that to the best of my knowledge, the above-named member is single or that his spouse cannot be located. Signature of Plan Representative/Notary Date I certify that I have agreed with my spouse on the selection of the above-named beneficiary or beneficiaries I understand that if I am not named beneficiary, I will not be entitled to benefits under the Plan. Signature of Spouse Date I certify that I have witnessed the above spouse's signature. Signature of Plan Representative/Notary • Name: Larry Freedle Emp No. DOH: Yrs Service: 26 32370 28 Hourly Rate: Hours Base: EMT Pay Annual Salary General Fire Pension 13.928 3248 $0.00 26 65.000% Annual Salary. 1/12 Monthly Benefit Rounded to nearest cent Additional Yrs Beyond: 5 5 Max at: $20.00 DROP Amount 0.0000 45,238.1440 29,404.7936 2,450.3995 2,450.40 100.00 2,550.40 Date: 02/13/98 • IMPORTANT NOTICE Attorneys for the Fayetteville Fireman's Pension and Relief Fund Board of Trustees has advised that there may be serious potential tax consequences as a result of participating in the Deferred Retirement Option Plan (DROP, A.C.A.§24-11-830) as follows: AN APPLICATION FOR A LETTER OF DETERMINATION AS TO rat TAX DEFERRAL STATUS OF THE FIREMAN'S PENSION AND RELIEF FUND PLAN AND TRUST HAS NEVER BEEN FILED WITH THE IRS. ALSO, NO DETERNTNATION REQUEST HAS BEEN MADE FOR THE DEFERRED RETIREMENT OPTION PLAN (DROP), AN AMENDMENT TO THE PENSION AND RELIEF FUND PLAN AND TRUST. RELIANCE ON ANOTHER STATE'S QUALIFICATION IS NOT PERMITTED. AN ADVERSE RULING ON THE TAX DEFERRED STATUS OF THE PLAN COULD HAVE SERIOUS DETRIMENTAL TAX CONSEQUENCES TO EACH PARTICIPANT. DROP DISTRIBUTIONS WILL BE TREATED AS ORDINARY INCOME IN THE YEAR CONSTRUCTIVE RECEIPT OCCURS AND ROLLOVER INTO AN OTHERWISE QUALIFIED PLAN, IRA OR OTHER INVESTMENT MAY NOT BE POSSIBLE. BY NOT ACTING TO FORMALLY TAX QUALIFY THE PLAN, AN ARRAY OF POSSIBLE OPTIONS FOR THE DROP PARTICIPANTS MAY NOT BE AVAILABLE. We strongly urge you to seek advice from a competent tax accountant and/or attorney before participating in the DROP program. You assume the risk of such adverse tax consequences if you elect to participate. • • • • FIREMEN'S RELIEF AND PENSION FUND APRIL 1998 •THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH OF APRIL 1998. YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE PAYEES, IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED. EMP# NAME • 43 BAIRD, RICHARD H. 2 BLACKARD, PAUL 63 BOLAIN, ANN 44 BOUDREY, BETTY MRS. 45 BOUDREY, HOWARD 49 BOUDREY, JACK 4 CARL, FLOYD JR 5 CASELMAN, ARTHUR 57 CATE, ROY 6 CHRISTIE ARNOLD 8 COUNTS, WAYNE 61 DAVIS, BEULAH F. 10 DEARING, EMMA MRS. 11 FARRAR, ALONZO 38 FRALEY, JOSEPH G. 33 HARRIS, BILL C. 34 HARRIS, JAMES E. 64 JORDAN, CHARLIE 47 JUDY, DARRELL 37 KING, ARNOLD D. 54 KING, ARVIL 12 LANE, HOPE MRS 13 LAYER, MERLIN 14 LEE, HAROLD 51 LEWIS, CHARLES 60 LEWIS, MARVIE 55 LEWIS, ROGER 40 LOGUE, PAUL D. 50 MASON, LARRY 39 MC ARTHUR, RONALD A. 35 MC CHRISTIAN, DWAYNE 15 MC WHORTER, CHARLES 29 MILLER, DONALD 42 MOORE, JAMES H. 17 MORRIS, WILKIE MRS. 16 MORRIS, WILLIAM H. 62 MORRISON, ELIENE 48 MULLENS, DENNIS W. 58 OSBURN, EDWARD 46 OSBURN, TROY 53 POAGE, LARRY 20 POLLY, GRACE A. MRS. 22 REED, JOE 30 SCHADER, EARVEL 41 SCHADER, TROY 23 SKELTON, BURL L. 24 SKELTON, LEE 56 SKELTON, ROY 36 SPRINGSTON, CARL 25 STOUT, ORVILLE 27 TUNE, MILDRED MRS. 26 TUNE, BILLIE SUE GROSS FED. TAX ST. TAX NET 1,191.06 100.00 55.00 55.00 1,641.57 180.00 1,383.66 1,088.98 287.68 55.00 75.00 1,182.35 55.00 55.00 377.50 55.00 707.84 1,171.39 100.00 55.00 55.00 1,525.81 1,088.98 1,008.97 100.00 1,131.00 130.00 55.00 417.50 55.00 1,088.98 570.91 570.92 50.00 1,902.69 200.00 1,078.16 78.16 1,159.11 100.00 55.00 30.00 886.19 80.00 863.01 125.00 55.00 55.00 70.00 80.00 1,448.31 1,646.01 160.00 1,255.55 65.81 1,556.57 210.00 55.00 55.00 923.01 1,007.92 57.00 692.50 42.50 390 00 1,626.02 126.02 609.88 50.00 590.36 50.00 80.00 80.00 1,091.06 55.00 55.00 1,461.57 1,383.66 50.00 751 30 55.00 75.00 1,182.35 55.00 55.00 377.50 55.00 707.84 10.00 1,061.39 55.00 55.00 1,525.81 1,088.98 10.00 898.97 1,001.00 55.00 417.50 55.00 1,088.98 570.91 10.00 510.92 25.00 1,677.69 1,000.00 1,059.11 25.00 806.19 738.01 55.00 55.00 70.00 80.00 1,448.31 1,486.01 1,189.74 60.00 1,286.57 55.00 55.00 923.01 950.92 650.00 390.00 50.00 1,450.00 9.88 550.00 540 36 80.00 80 00 • 28 WATTS, DONALD 59 WATTS, WAYNE 52 WRIGHT, RANDALL DROP EMPLOYEES JOHNSON, ROBERT MILLER, KENNETH WARFORD, THOMAS BONADUCE, MICHAEL DILL, GARY GAGE, TOMMY 400.00 1,191.51 1,128.98 96.17 150.00 400.00 1,095.34 978.98 37,713.20 2,568.34 224.88 34,919.98 2,042.47 2,129.57 1,659.70 1,975.38 2,396.21 1716.25 WE, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE JUST AND CORRECT; THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID; THAT THE PENSION PAYMENTS SO CHARGED ARE IN ACCORDANCE WITH THE ACTIONS OF THE BOARD OF TRUSTEES OF THE FIREMEN'S RELIEF AND PENSION FUND; THAT THE SERVICES OR SUPPLIES FURNISHED, AS THE CASE MAY BE, WERE ACTUALLY RENDERED OR FURNISHED; AND THAT THE CHARGES MADE THEREFORE DO NOT EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR SERVICES OR SUPPLIES. gAsae, • CHAIRMAN A ' PRESIDENT ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) )SS SWORN TO AND SUBSCRIBED BEFORE ME THISJOf1JAY OF NO J'i-Y PUBLIC MY COMMISSION EXPIRES: 3 - /m700S .TGnc , 1998. oomemnotp 1,* ••Hf ly'% t'sc +q. SOTAgy 37, ^ Gz z•'; p!/BL1 %,oil>. a• i. 200!!". qt. ftr ..#/fr COU NSA` • FAYETTEVILLE FIRE DEPT PENSION AND RELIEF FUND PORTFOLIO PERFORMANCE 12/31/97 TO 2/28/98 NM CAPITAL MANAGEMENT INCOME ACCOUNT KEYSTONE ASSET MGNT 3 -MONTHS TREASURY BILLS DJIA W/DIV REINVESTED S & P 500 W/DIV REINVEST LONG TERM TREASURY BONDS HIGH GRADE CORP BONDS CPI {jan} NM CAPITAL {time wtd} INCOME ACCOUNT • KEYSTONE ASSET MGNT JANUARY 1996 Dow United Kingdom Hong Kong MAY 1996 Dow United Kingdom Japan Hong Kong SEPT 1996 Dow United Kingdom Japan • Hong Kong 12/31/97 1/31/98 4,647,115 4,612,909 4,897,448 4,957,631 2/28/98 4,800,675 5,085,472 1.561.424 1.513.830 1.644.048 11,106 027 11,084,370 11,530,195 12/31/95 + 5.46 +35.53 +34.94 +27.63 +23.51 + 2.67 +15.68 +15.61 original inv. $75,000 75,000 75,000 $75,000 75,000 75,000 75,000 $75,000 75,000 75,000 75,000 12/31/96 12/31/97 2/28/98 + 5.31 +29.49 +22.98 - 1.21 + 1.61 + 3.32 +11.37 + 4.25 +17.91 + 5.33 +24.87 +33.36 +15.38 +13.42 + 1.70 +16.97 + 6.38 +30.80 1/31/98 $ 106,114 88,463 55,134 $ 98,165 108,581 35,651 53,148 $ 100,974 97,090 41,132 50,929 +0.82 +8.35 +8.40 +1.25 +1.15 +0.19 +3.44 +2.73 +5.29 2/28/98 114,776 97,490 57,160 104,969 116,862 37,914 58,463 107,567 105,334 44,872 56,972 • p FORM ADV •Part II - Page 1 Name of Investment Adviser: Ashland Management Incorporated Uniform Application for Investment Adviser Registration OMB APPROVAL OMB Number: 3235-0049 Expires. April 30, 2000 Estimated average burden hours per response .... 9.01 Address: (Number and Street) (City) (State) (Zip Code) 26 Broadway New York, NY 10004 Area Code: Telephone Number: (212) 425-2803 • This part of Form ADV gives information about the investment adviser and its business for the use of clients. The information has not been approved or verified by any governmental authority. Table of Contents Item Number Item Page 1 Advisory Services and Fees 2 2 Types of Clients 2 3 Types of Investments 3 4 Methods of Analysis, Sources of Information and Investment Strategies 3 5 Education and Business Standards 4 6 Education and Business Background 4 7 Other Business Activities 4 8 Other Financial Industry Activities or Affiliations 4 9 Participation or Interest in Client Transactions 5 10 Conditions for Managing Accounts 5 11 Review of Accounts 5 12 Investment or Brokerage Discretion 6 13 Additional Compensation 6 14 ' Balance Sheet 6 Continuation Sheet Schedule F Balance Sheet, if required Schedule G (Schedules A, B, C, D, and E are included with Part I of this Form, for the use of regulatory bodies, and are not distributed to clients.) Potential persons who are to respond to the collection of informa- don contained in this form are not required to respond unless the form displays a currently valid OMB control number. Copyright01992. NRS Systems. Inc. (Portions of Software Only) 'FORM ADV Par, II - Page 2 Applicant: Ashland Management Incorporated SEC File Number: 801- 11384 Date: 1130198 • Definitions for Part II Related person — Any officer, director or pettier of applicant or any person directly or indirectly controlling, controlled by, or under common control with the applicant, including any non -clerical, non -ministerial employee. Investment Supervisory Services — Giving continuous investment advice to a client (or making investments for the client) based on the individual needs of the client. Individual needs include, for example, the nature of other client assets and the client's per- sonal and family obligations. 1. A. Advisory Services and Fees. (check the applicable boxes) For each type of service provided, state the approximate % of total advisory billings from that service. Applicant: (See instruction below.) ❑ (1) Provides investment supervisory services % 100 % 12 (2) Manages investment advisory accounts not involving investment supervisory services ❑ (3) Furnishes investment advice through consultations not included in either service described above % ❑ (4) Issues periodicals about securities by subscription % 0 (5) Issues special reports about securities not included in any service described above % ❑ (6) Issues, not as part of any service described above, any charts, graphs, formulas, or other devices which % % clients may use to evaluate securities • On than occasional basis, furnishes advice to clients on matters not involving securities (7) more an ❑ (8) Provides a timing service % % • (9) Furnishes advice about securities in any manner not described above (Percentages should be based on applicant's last fiscal year. If applicant has not completed its first fiscal year, provide estimates of advisory billings for that year and state that the percentages are estimates.) Yes No it financial or some similar term? • 81 B. Does applicant call any of the services checked above planning C. Applicant offers investment advisory services for: (check a6 that apply) I] (1) A percentage of assets under management 0 (4) Subscription fees • (2) Hourly charges 0 (5) Commissions ❑ (3) Fixed fees (not including subscription fees) 0 (6) Other D. For each checked box in A above, describe on Schedule F: • the services provided, including the name of any publication or report issued by the adviser on a subscription basis or for a fee • applicant's basic fee schedule, how fees are charged and whether its fees are negotiable • when compensation is payable, and if compensation is payable before service is provided, how a client may get a refund or may terminate an investment advisory contract before its expiration date CPTypes of Clients — Applicant generally provides investment advice to: (check those that apply) IN A. Individuals MI E. Trusts, estates, or charitable organizations 0 B. Banks or thrift institutions IN F. Corporations or business entities other than those listed above ® C. Investment companies 0 G. Other (describe on Schedule F) I ® D. Pension and profit sharing plans Answer all items. Complete amended pages in full, circle amended hems and file with aeration page (page 1). Copyright01992. NRS Systems, Inc. (Portions of Software Only) 'FORM ADV Part/II - Page 3 Applicant: Ashland Management Incorporated SEC File Number: 80I- 11384 Date: 9/18/96 3. Types of Investments. Applicant offers advice on the following: (check those that apply) A. Equity Securities O (1) exchange -listed securities ® (2) securities traded over-the-counter (3) foreign issuers O B. Warrants • C. Corporate debt securities (other than commercial paper) El D. Commercial paper EI E. Certificates of deposit m F. Municipal securities G. Investment company securities: O (1) variable life insurance O (2) variable annuities O (3) mutual fund shares • H. United States government securities m 1. Options contracts on: (1) securities (2) commodities I. Futures contracts on: II (1) tangibles O (2) intangibles K. Interests in partnerships investing in: O (1) real estate O (2) oil and gas interests O (3) other (explain on Schedule F) O L. Other (explain on Schedule F) 4. Methods of Analysis, Sources of Information, and Investment Strategies. A. Applicant's security analysis methods include: (check those that apply) Charting Fundamental Technical (4) 0 Cyclical (5) 0 Other (explain on Schedule F) B. The main sources of information applicant uses include: Financial newspapers and magazines Inspections of corporate activities Research materials prepared by others Corporate rating services (check those that apply) (8) ❑ Timing services m Annual reports, prospectuses, filings with the Securities and Exchange Commission m Company press releases ❑x Other (explain on Schedule F) C. The investment strategies used to implement any investment advice given to clients include: (check those that apply) (4) El Long term purchases (securities held at least a year) ❑x Short term purchases (securities sold within a year) ® Trading (securities sold within 30 days) O Short sales (5) 0 Margin transactions (6) m Option writing, including covered options, uncovered options or spreading strategies rn Other (explain on Schedule F) Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1). Copyright 01992. NRS Systems, Inc. (Portions of Software Only) FORM ADV Pare II - Page 4 Applicant: SEC File Number: Date: Ashland Management Incorporated 801- 11384 1/31/92 ▪ Education and Business Standards. Are there any general standards of education or business experience that applicant requires of those involved in deter- Yes No mining or giving investment advice to clients? 0 ❑x (If yes, describe these standards on Schedule F.) 6. Education and Business Background. For: • each member of the investment committee or group that determines general investment advice to be given to clients, or • if the applicant has no investment committee or group, each individual who determines general investment advice given to clients (if more than five, respond only for their supervisors) • each principal executive officer of applicant or each person with similar status or performing similar functions. On Schedule F, give the: • name • formal education after high school • year of birth • business background for the preceding five years 7. Other Business Activities. (check those that apply) ❑ A. Applicant is actively engaged in a business other than giving investment advice. ❑ B. Applicant sells products or services other than investment advice to clients. ❑ C. The principal business of applicant or its principal executive officers involves something other than providing investment advice. (For each checked box describe the other activities, including the time spent on them, on Schedule F.) • Other Financial Industry Activities or Affiliations. (check those that apply) ❑ A. Applicant is registered (or has an application pending) as a securities broker-dealer. ❑ B. Applicant is registered (or has an application pending) as a futures commission merchant, commodity pool operator or commodity trading adviser. C. Applicant has arrangements that are material to its advisory business or its clients with a related person who is a: ❑ (1) broker-dealer 0 (7) accounting firm O (2) investment company 0 (8) law firm ❑ . (3) other investment adviser • 0 (9) insurance company or agency ❑ (4) financial planning firm 0 (10) pension consultant ❑ (5) commodity pool operator, commodity trading 0 (11) real estate broker or dealer adviser or futures commission merchant 0 (12) entity that creates or packages limited partnerships O (6) banking or thrift institution (For each checked box in C, on Schedule F identify the related person and describe the relationship and the arrangements.) D. Is applicant or a related persona general partner in any partnership in which clients are solicited to Yes No invest? ❑ ❑x Of yes, describe on Schedule F the partnerships and what they invest in.) Answer all items. Complete amended pages in full, circle amended items and rde with execution page (page 1). Copyright01992. NRS Systems. Inc. (Portions of Software Only) FORM ADV Part 1I - Page 5 • Applicant: Ashland Management Incorporated SEC File Number: 801- 11384 Date: 1/30/98 1 9. Participation or Interest in Client Transactions. Applicant or a related person: (check those that apply) ❑ A. As principal, buys securities for itself from or sells securities it owns to any client. ❑ B. As broker or agent effects securities transactions for compensation for any client. ❑ C. As broker or agent for any person other than a client effects transactions in which client securities are sold to or bought from a brokerage customer. ❑ D. Recommends to clients that they buy or sell securities or investment products in which the applicant or a related person has some financial interest. IM E. Buys or sells for itself securities that it also recommends to clients. (For each box checked, describe on Schedule F when the applicant or a related person engages in these transactions and what restrictions, internal procedures, or disclosures are used for conflicts of interest in those transactions.) 10. Conditions for Managing Accounts. Does the applicant provide investment supervisory services, manage investment advisory accounts or hold itself out as providing financial planning or some similarly termed services and impose a minimum dollar Yes No value of assets or other conditions for starting or maintaining an account? ❑x 0 (If yes, describe on Schedule F.) Review of Accounts. If applicant provides investment supervisory services, manages investment advisory accounts, or holds itself out as providing financial planning or some similarly termed services: Describe below the reviews and reviewers of the accounts. For reviews, include their frequency, different levels, and triggering factors. For reviewers, include the number of reviewers, their tides and functions, instructions they receive from applicant on perforating reviews, and number of accounts assigned each. The Registrant automatically reviews client equity accounts each month after it has completed the screening of the data base used in the Registrant's stock selection process. In addition, the publication of adverse data concerning an issuer would prompt the Registrant to review the accounts holding the securities of such issuer. Reviews presently are conducted by the Registrant's investment managers. Reviews of both equity and fixed income accounts include transactions during the month, cash balances, and compliance wth the client's investment policy and with any restrictions imposed by the client. Describe below the nature and frequency of regular reports to clients on their accounts. The Registrant submits reports to clients no less frequently than quarterly; and if the client requests, reports may be made on a monthly basis. Such reports for equity accounts consist of the security positions of the account by issuer, number of shares, cost and recent market value, as well as cash or short-term investments. For fixed income accounts, the reports include sector analysis of the account's securities, durations of securities, average yield of securities, the average coupon rate, and the anticipated cash flow from the securities. The reports for balanced accounts combine the features of reports for both equity and fixed income accounts. The Registrant does not generally forward any other material with the report other than the transmittal letter. However, if an unusual amount of account activity or a noteworthy event has occurred between reports, an explanation may accompany the report. Answer a8 items. Complete amended pages in hill, dale amended items and file with execution page (page 1). Copyright®1992. NRS Systems, Inc. (Portions of Software Only) FORM ADV Part 11 - Page 6 Applicant: Ashland Management Incorporated SEC File Number: 801- 11364 Date: 1/30/96 2. Investment or Brokerage Discretion. A. Does applicant or any related person have authority to determine, without obtaining specific client consent, the: (1) securities to be bought or sold? (2) amount of the securities to be bought or sold? (3) broker or dealer to be used? - (4). commission rates paid? Yes No x❑ 0 Yes No p 0 Yes No E ❑ Yes No O 0 B. Does applicant or a related person suggest brokers to clients? For each yes answer to A describe on Schedule F any limitations on the authority. For each yes to A(3), A(4) or B, describe on Schedule F the factors considered in selecting brokers and determining the reasonableness of their commis- sions. If the value of products, research and services given to the applicant or a related person is a factor, describe: • the products, research and services • whether clients may pay commissions higher than those obtainable from other brokers in return for those products and services • whether research is used to service all of applicant's accounts or just those accounts paying for it; and • any procedures the applicant used during the last fiscal year to direct client transactions to a particular broker in return for products and research services received. Yes No x❑ 0 13. Additional Compensation. Does the applicant or a related person have any arrangements, oral or in writing, where it: A. is paid cash by or receives some economic benefit (including commissions, equipment or non -research services) from a non -client in connection with giving advice to clients? B. directly or indirectly compensates any person for client referrals? (For each yes, describe the arrangements on Schedule F. Yes No x❑ 0 Yes No 0 0 14. Balance Sheet. Applicant must provide a balance sheet for the most recent fiscal year on Schedule G if applicant: • has custody of client funds or securities; or • requires prepayment of more than $500 in fees per client and 6 or more months in advance Yes No Has applicant provided a Schedule G balance sheet? 0 0 Answer all items. Complete amended pages in fug, circle amended items and file with execution page (page 1). Copyright 01992. NRS Systems, Inc. (Portions of Software Only) Schedule F of Form ADV Continuation Sheet for Form ADV Part II Applicant: Ashland Management Incorporated SEC File Number: 801- 11384 Date: 1/30/98 not use this Schedule as a continuation s CopyrightoO1992. NRS Systems. Inc. (Portions of Software Only) — — — 1. Full name of applicant exactly ' Ashland Management Incorporated as stated in Item IA of Part I of Fonn ADV: IRS Empl. (dent. No.: Item of Form (identify) Answer ' 1(A)(B)(C) The business accounts description Registrant's major The accounts, basis profit approach companies. The advisory to The quarterly) management. The Assets Up Amounts Amounts The size circumstances For primarily securities. are Fees respective immediately following information relates to the Registrant's investment advisory and strategies generally and to its traditional or "core" business (primarily for institutions and high net worth individuals). There is also included a of the Registrant's investment advisory business as it relates to the services as an investment manager in "wrap -fee" programs sponsored by brokerage firms and other sponsors. Registrant manages equity (both large capitalization and medium capitalization) fixed income accounts, and balanced accounts for clients on a discretionary for individuals, trusts, charitable foundations, corporations, and pension plans and sharing plans. For equity accounts, the Registrant employs a fundamental to investing in growth oriented securities of medium and large capitalization Registrant does not provide investment supervisory services or render investment services in any other mariner. The Registrant is not, and does not hold itself out be, a financial planner. Registrant receives for its investment management services an annual fee (payable which is generally a percentage of the assets in the account under Registrant's standard annual fee schedule for its "core" equity accounts is: under Management Fee to S10 Million 1% in excess of S10 Million up to $30 Million 3/4 of 1% in excess of $30 Million 1/2 of 1% Registrant's fees for equity accounts are negotiable to a certain extent based on the of the account and the services required by the client. Therefore, there may be where fees are computed on a basis different from those set forth above. fixed income accounts, the Registrant's annual fees are .40% for accounts invested in taxable securities and .25% for accounts invested primarily in tax-exempt Fees for fixed income accounts with initial values in excess of $10,000,000 negotiable. for balanced accounts are negotiable and are dependent to a certain extent on the proportions of equity and fixed income assets in the account. 0 Complete amended pages in fun, circle amended items and Ole with execution page (page 1). CopyrightoO1992. NRS Systems. Inc. (Portions of Software Only) Schedule F of Form ADV Continuation Sheet for Form ADV Part II 4 Applicant: Ashland Management Incorporated SEC File Number: 801- 11384 Date: 1/30/98 o not use this Schedule as a co Copyright01992. NRS Systems, Inc. (Portions of Software Only) 1. Full name of applicant exactly ' Ashland Management Incorporated as stated in Item IA of Part I of Form ADV: IRS Empl. (dent. No.: Item of Form (identify) Answer r■ Cont. The Registrant's general policy is to bill its advisory fees quarterly the average month-end values of the account during the quarter. Fees are prorated when an account commences or terminates during "Wrap -fee" Programs in arrears, based on a calendar quarter. renders investment Pierce, Fenner & Keegan Incorporated; programs for programs for by those firms. In an investment account; monitor the transactions for the For such services, the from the client. The balanced accounts for may be selected guidance and assistance adviser's investment In the Merrill Lynch with the client; in the only agreement and/or administered by portfolio management Financial Services, Inc., with the client. is paid by the assets in the respective to the Registrant out firm. Investment compensation payable firm. is $100,000. Through its National Assets Group division, the Registrant management services for equity accounts of clients of Merrill Lynch, Smith Incorporated; Prudential Securities Incorporated; Morgan Portfolio Management. Consultants Incorporated (which also administers other firms); and Lockwood Financial Services, Inc. (which also administers other firms), who participate in the "wrap -fee" programs sponsored these programs the sponsors generally: assist the client in selecting adviser; pay the adviser for its management services for the performance of the investment adviser; execute brokerage client's account; and provide custodial services for the account. sponsoring brokerage firm receives an all-inclusive annual fee Registrant does not currently manage any fixed income or "wrap -fee" programs. In a "wrap -fee" program an investment adviser such as the Registrant by a client of the sponsoring brokerage firm (typically with the of the brokerage firm) based upon the compatibility of the philosophy and strategy with the client's objectives and strategy. program, the Registrant executes an appointment schedule programs sponsored by Prudential and Morgan Keegan, the Registrant's is with the sponsoring brokerage firm. In programs sponsored Portfolio Management Consultants, the Registrant executes a agreement with the client. For accounts of clients of Lockwood the agreement may be executed either with Lockwood or directly For managing accounts in these "wrap -fee" programs, the Registrant program sponsor an annual fee computed on the basis of the client's account. Such management fee is payable by the sponsor of the "wrap -fee" paid by the client to the sponsoring brokerage management fees in such programs are paid quarterly. The fees payable by the client for a "wrap -fee" account, and the to the manager, are set forth in the brochure of the sponsoring brokerage The minimum account value for accounts in these "wrap -fee" programs Complete amended pages in full, circle amended items and file with execution page (page 1). Copyright01992. NRS Systems, Inc. (Portions of Software Only) Schedule F of Form ADV Continuation Sheet for Form ADV Part II Applicant: Addend Management Incorporated SEC File Number: 801- 11384 Date: 1130198 o not use this Schedule as a continuation sheet for Form ADV 1. Full name of applicant exactly as stated in Item 1A of Part 1 of Form ADV: Ashland Management Incorporated IRS Empl. (dent. No.: Item of Form (identify) Answer Since the "wrap -fee" paid by the client to the sponsoring brokerage firm includes all brokerage fees for executing transactions for the account, such transactions are generally executed by the sponsor or its affiliate. There may, however, be circumstances in which the Registrant selects another broker-dealer for a particular transaction. The Registrant manages equity accounts for individuals, trusts, charitable organizations, corporations, and private and public pension plans. Fixed income accounts and balanced accounts are currently managed for individuals, corporations and private pension plans. The Registrant also serves as a sub -sub -adviser to a registered investment company. In managing equity accounts, which may be comprised of large capitalization or medium capitalization securities, and the equity portion of balanced accounts, the Registrant employs a fundamental approach to investing in growth -oriented securities of medium and large capitalizaiton companies which have positive earnings. The Registrant invests the assets of managed equity accounts in common stocks, both exchange -listed and over-the-counter, of domestic and, occassionally, foreign issuers (primarily in the form of American depository receipts) which it considers to have high growth rates and levels of profitability. If requested by the client, the Registrant may purchase or sell options on equity securities. Clients are permitted to impose investment restictions and guidelines which are acceptable to the Registrant and consistent with the Registrant's investment strategy. Such restrictions may relate to a particular security, an entire industry, or an investment rating or may require that a particular security in the client's account be held and not sold. Equity securities are selected based upon a number of financial screens and calculation of the "rational value" of the security. Generally, the universe of securities eligible for purchase are different for the Registrant's large capitalization and medium capitalization strategies, although there may be some overlap. Furthermore, the screens for the large capitalization strategy and those for the medium capitalization strategy vary in certain respects. Moreover, medium capitalization portfolios may hold stocks of a larger number of issuers. All such factors and criteria are, of course, subject to revision for each of the strategies. Pending investment, or at such times as the Registrant's strategy calls for reduction in, or limitation of exposure to, common stocks, funds in accounts may be invested in United States Treasury securities or in money market funds of brokers or custodians. Funds so temporarily invested in money market accounts may also be subject to a fee payable by the money market fund to the adviser to such fund on that portion of the client's account which is from time to time invested in the money market fund. The Registrant's investment strategy for equity accounts is fundamental, using both the Standard & Poor's Compustat data base and the Baseline data base. Both strategies are supplemented by research sources and services which the Registrant believes are reliable. Investment decisions are based primarily upon reported financial information. (i (B) Cont , �—� ( Z) Complete amended pages in full, circle amended items and file with execution page (page 1). CopyrighteO1992. NRS Systems, Inc. (Portions of Software Only) Schedule F of. - Form ADV Continuation Sheet for Form ADV Part 11 Applicant: Ashland Management Incorporated SEC File Number: 801- 11384 Date: 1/30/98 o not use this Schedule as a they srhednles.) Copyright01992. NRS Systems, Inc, (Portions of Software Only) I. , Full name of applicant exactly as stated in Item lA of Part I of Form ADV: Ashland Management Incorporated IRS Empl. (dent. No.: Item of Form (identify) Answer ' 1 In December, 1997, the Registrant entered into arrangements pursuant to which it owns a fifty percent (50%) equity interest in a limited liability company which serves as the general partner of, and manager to, a private investment limited partnership. Any advice rendered by the Registrant to such limited partnership will be on non -discretionary basis. Such limited partnership is in its inception stage, and the arrangements are not currently material to the business of the Registrant. members of Registrant's Investment Committee are: Charles C. Hickox, Chairman the Board; Parry v. S. Jones, President; Terence J. McLaughlin, Managing Director; Robert J. Flynn, Vice President; and Nicholas P. Jones, Vice President; and Kevin McCarthy, Vice President. Charles C. Hickox (b 1936), a graduate of Columbia University, has been Chairman, Secretary and a Director of the Registrant since 1980. Parry v. S. Jones (b 1936), a graduate of Brown University, has been President, Treasurer and a Director of the Registrant since 1975. Terence J. McLaughlin (b 1958), a graduate of St. John's University has been a Vice President of the Registrant since 1989, and was named a Managing Director in 1992. Robert J. Flynn (b 1946), a graduate of Northeastern University, has been a Vice President of the Registrant since November 1991. From June 1989 to November 1991, he was Vice President of Smith Barney, Upham, Harris & Co; from May 1988 to June 1989, he was a Vice President with Dean Witter, Incorporated; from July 1986 February 1988, he was employed by NHP Real Estate Securities. Nicholas P. Jones (b 1959), a graduate of University of Pennsylvania, Wharton School, has been employed by the Registrant since 1986. He was elected a Vice President 1991 and was appointed a Portfolio Manager in 1996. Kevin A. McCarthy (b 1960), a graduate of Pace University, has been employed by the Registrant since 1991 and has been a Vice President since 1996. Originally the Director of Trading for the Registrant, he was appointed a Portfolio Manager in January, 1998. From October 1988 to October 1991, he was employed as a broker by M&M Securities, and from October 1984 to October 1988, he was a broker with Sean McCooey & Co. a of M. to in 4 Cont. ) COThe Complete amended pages in full, circle amended items and file with execution page (page 1). Copyright01992. NRS Systems, Inc, (Portions of Software Only) Schedule F of Form ADV Continuation Sheet for Form ADV Part II Applicant: Ashland Management Incorporated SEC File Number: 801- 11384 Date: 1130/98 (Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules. I. Full name of applicant exactly Ashland Management Incorporated as stated in Item IA of Part 1 of Form ADV: IRS Empl. (dent. No.: Item of Form (identify) Answer Charles C. Hickox, Chairman of the Board, and Parry v. S. Jones, President, are also clients of the Registrant, and, therefore, securities purchased or sold for other clients may also be purchased or sold for their accounts, subject to the trading restrictions set forth below. , The Registrant has adopted (1) policies and procedures to prevent misuse of non-public information, (ii) supervisory and record-keeping procedures, and (iii) a code of ethics under the Investment Company Act of 1940. All officers and employees of the Registrant are required to submit securities transactions for prior approval by the Registrant's Compliance Officer and to arrange for delivery to the Compliance Officer copies of the trade confirmations for all of their security transactions and of monthly statements for their accounts. Furthermore, in the event that an officer or employee of the Registrant desires to have a transaction for the purchase or sale of a security which is being purchased or sold for the account of a client, the officer or employee is required to delay execution of his or her own transaction until 48 hours after the client's transaction has been completed. The Registrant generally will not accept a "core" equity account from an individual with an initial value of less than *1,000,000 or from an institution with an initial account value of less than $3,000,000. For fixed income securities, the initial minimum value is generally *500,000. If the Registrant accepts an account with a lower value than these respective minimums, a minimum annual fee may be charged. It is the Registrant's policy in transacting security transactions for its clients' accounts to seek quality execution at favorable transaction costs consistent with the authority granted or direction given to the Registrant by the particular client. The Registrant's standard form of investment advisory agreement for other than "wrap -fee" accounts provides that unless the client designates a broker-dealer to execute transactions for its account, the Registrant shall select the firm or firms through which securities transactions for such account will be effected. The primary factors considered by the Registrant in selecting the broker-dealers to execute transactions for such accounts are: (a) quality of execution; (b) commissions or mark-ups charged; (c) reliability and financial condition of the broker-dealer; and (d) research and portfolio analysis services furnished. In selecting a broker-dealer for a particular transaction, the Registrant also takes into account the size and difficulty of the specific order. The Registrant serves as a sub -sub -adviser to a registered investment company. The agreement pursuant to which the Registrant performs such advisory services for such investment company provides that, subject to the satisfaction of certain conditions, the Registrant is to direct 25% of the brokerage transactions for the investment company to broker-dealers which will provide services to defray the costs of operating such investment company. 91E) �— 10 12-13 Complete amended pages in hill, circle amended items and file with execution page (page 1). Copyright1992. NRS Systems, Inc. (Portions of Software Only Schedule F of Form ADV Continuation Sheet for Form ADV Part 11 Applicant: Ashland Management Incorporated SEC File Number: 801- 11384 Date: 1/30/98 (Do not use this Schedule as a continuation sheet for Form ADV Part I or any other s 11. Full name of applicant exactly Ashland Management Incorporated as stated in Item IA of Part I of Porm ADV:. IRS Empl. (dent. No.: Item of Form (identify) Answer ' 1 1 2-1 3 Cont. For the execution of equity transactions for clients which grant to the Registrant the unrestricted right to select the broker-dealer, the Registrant pays negotiated commissions which are the same for all shares included in a trade irrespective of the account for which the trade is made. For fixed income securities, the Registrant attempts to negotiate the best commissions and/or prices from broker-dealers. The Registrant does not pay a higher rate of commissions because of any services provided by any broker-dealer which it has the unrestricted authority to select. Clients which do not grant to the Registrant the authority to select broker-dealers for their accounts may incur higher transaction costs than those clients which authorize the Registrant to select broker-dealers. Trades for the Registrant's clients are either executed individually (where the broker-dealer designated by the client has not been designated by any of the Registrant's other clients) or "bunched" (where multiple clients have designated the same broker-dealer or where the Registrant has the right to select the broker-dealer to execute transactions for the client's account). When trades are bunched through a particular broker-dealer, each account receives the average price for the transactions. In this manner, all clients whose trades are executed through the same broker-dealer are treated equally. The bunching of orders does not affect the price at which transactions are executed or the commissions which are paid by the clients' accounts. The Registrant receives research and other services or products within the parameters of Section 28(e) of the Securities Exchange Act. The Registrant presently has certain arrangements whereby it directs brokerage, subject to the requirements of best execution and price and receives various research, publications, and analytical services from brokers. All of the services and portfolio analyses provided by broker-dealers to the Registrant pursuant to such arrangements are research services which are used by the Registrant in managing accounts over which the Registrant has investment discretion. Such services include: data bases and portfolio analysis services used in securities research; performance data bases; statistical services; news and quotation services utilized for securities research and for managing portfolios; services which analyze and make recommendations concerning the voting by the Registrant of proxies for securities held in managed accounts; investment seminars; and .transaction cost analyses for clients' accounts. None of such services relate to general administrative or other functions of the Registrant. Research services provided by broker-dealers or third -party providers for accounts for which the Registrant has the authority to select broker-dealers may be used to benefit all of the accounts managed by the Registrant. Therefore, an account may benefit from services provided by a broker-dealer which does not execute transactions for such account. Conversely, an account may pay commissions to a broker-dealer which provides services that also benefit other accounts. The Registrant periodically reviews on a regular basis the commission rates and prices paid to the broker-dealers which the Registrant selects to effect transactions and the quality of the execution services performed by such broker-dealers. . Complete amended pages in full, circle amended items and file with execution page (page 1). Copyright101992. NRS Systems, Inc. (Portions of Software Only) Schedule F of .Form ADV Continuation Sheet for Form ADV Part II Applicant: AsNand Management Incorporated SEC File Number: 801- 11384 Date: 1130198 (Do' not use this Schedule as Part Copyright (c)1992. NRS Systems, Inc. (Portions of Software Only) 1 I. Fug name of applicant exactly Ashland Management Incorporated as stated in Item lA of Part 1 of Form ADV: IRS Empl. (dent. No.: Item of Fonn (identify) Answer 1 12-13 Cont.) Clients for which the Registrant manages accounts in "wrap -fee" programs pay to the program sponsors all-inclusive fees for investment management, custodial and brokerage services. Such fees cover brokerage commissions for transactions effected through the sponsoring broker-dealer or other firm designated in the client's agreement with the sponsor. In effecting transactions for "wrap -fee" accounts, the Registrant takes into account the fact that transactions through another broker-dealer would entail an additional payment by the client for transaction services. The Registrant has an incentive compensation arrangement for certain marketing employees who are not executive officers of the Registrant. Pursuant to such arrangement, such employees •receive during the period that an account is managed by the Registrant decreasing percentages of the fees received by the Registrant from accounts which they solicited for the Registrant. Such employees are also eligible to participate, through awards from an incentive "pool", in fees from "wrap -fee" accounts managed by the Registrant. These arrangements are structured to comply with the provisions of Rule 206(4)-3 under the Investment Advisers Act. The Registrant has an arrangement with a financial planning/investment advisory firm which, while not entailing the payment of a referral fee, provides for the management by the Registrant of accounts for clients of such other firm at advisory fees which vary from the Registrant's standard fees. This arrangement is also structured to comply with the provisions of Rule 206(4)-3. Complete amended pages in fug, circle amended items and file with execution page (page 1). Copyright (c)1992. NRS Systems, Inc. (Portions of Software Only)