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
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37,
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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)