HomeMy WebLinkAbout1991-02-21 Minutes;•
•
IM -40
MINUTES OF A MEETING OF THE POLICE PENSION BOARD
A meeting of the Fayetteville Police Pension andRelief Fund Board
of Trustees was held on [Thursday,wFebrua_ry 21,.1991, at 3:30 p.m.
in Room 326 of City Hall. T
PRESENT: Eldon Roberts, Rick Hoyt, Jerry Friend, Dr, James
Mashburn, Hollis Spencer, City Manager Scott
Linebaugh, Finance Director Ben Mayes, and City
Clerk Sherry Thomas
CALL TO ORDER
The meeting was called to order by City Manager Linebaugh,
I!"Al*"'
Mashburn, seconded by Roberts, made a motion to approve the minutes
from the October 25, 1990 meeting. The motion was approved by a
unanimous vote.
Mike Kirkland, with Dean Witter, stated the ACORN account and the
Madison account portfolios, which has been moved to Dean Witter,
• have been established and are running pretty smoothly. He said the
report that has been prepared for this meeting is pretty self-
explanatory.
There is over a half million dollars in cash available for use as
needed as well as the bond. The cash account interest rate has
continued to come down and now is around 6.56, which is a
competitive rate.
Mayes stated that a minimum will be maintained in the City account.
The current balance in the City account is approximately $23,000.
Kirkland explained that the first trade in the Madison account,
fixed asset account, was currently worth $1,108,585. He stated the
account started with $1 million about 14 months ago, so it is up
about 9%
He reported that the cash in the ACORN account should show
$254,000. The ACORN account is worth about $1,063,000, which is
extremely well. That is up 6.3% in three and one-half months, and
a little over 9% on Madison on the cash account. On the ACORN and
Madison accounts, the initial investment was $2,003,000, and the
accounts are now worth $2.175 million (up $168,575.00).
Elaine Longer, of Longer Investments, distributed year end reports
to the Board and explained the stock portfolio at this time is
• worth right at $971,000, and we started with right at $1 million in
June; bond account which contains $524,000, with a yield of about
February 21, 1991
8.5% on historical costs -- 8.3% on market; the third report is the
combined account which was right at $1.495 million with stocks
making up 60% of the total and bonds and cash making up the rest of
it (about 40%). The yield on the stock portfolio was about 3.3% at
year end and the yield on the bond portfolio was right at 8.3%.
Six percent is the target figure.
The equity account is up to $1,083,000 and is fully invested.
There is a 2% cash reserve to be used for Pacific Corp. The
dividend yield on the stock part of the portfolio shows a 2.6%
yield on market value and 3% on historical cost.
There has been no change in the bond account since year end except
that the market value has gone up because interest rates dropped.
The combined account is at $1.616 million. Because the equity
market has been so strong, the equity is at 67% of the investment.
Roberts asked what the overall rate of return was on the portfolio.
Longer replied that the overall average rate of return on stocks
has been approximately 8.12%, and on bonds it is about 6.54%, so
that would be a combined total of 7-3/4% (bonds and stocks together
or 14.2% annualized). She stated that from January 14 to February
20, the market was up 400 points.
• Mayes stated all the requested changes in the investment policy
have been made.
In answer to an inquiry, Mayes stated there was never more than
$100,000 put into a CD in any bank. Therefore the collapse of some
banking institutions can not hurt the Pension's assets because
there is a 100% guarantee on this money.
DAVID PRESTON PENSION
Hoyt stated that he had a letter concerning David Preston, who used
to work for the City. He retired in 1983, for medical reasons. He
had not served his 20 years with the City at that time. Since that
time the 20 years expired in 1989, he has gained employment
elsewhere, and it was brought to the attention of the Board that
they should be aware of his retirement and the fact that 20 years
have elapsed and the Chief of Police sent a letter to Sheriff McKee
on January 21, 1991 stating that those were the facts and that
since 20 years have elapsed no consideration will be given to
reinstating David Preston with the Fayetteville Police Department.
He has no obligation to the City and the City has no obligation to
him other than paying him his retirement. Roberts, seconded by
Spencer, made a motion to recognize that David Preston has no
obligation to this Board or to the Fayetteville Police Department
• as 20 years have elapsed from retiring and the only obligation that
the Board has is to pay him his monthly pension benefit. The
motion was approved by a unanimous vote.
February 21, 1991
I.`I�I;i Irl i;j zf7?
Hoyt asked why the remaining position on the Board has not been
filled.
Friend, seconded by Roberts, made a motion to ask City Attorney
Jerry Rose how to solve this problem. The motion was approved by
a unanimous vote.
The next meeting will be held on a Monday in April at 2:00 p.m.
The meeting was adjourned at 4:48 p.m.
•
0
•
•
Y
OF FAYETTEVILLE, ARKANSAS
EMEN'S PENSION AND RELIEF FOND
TMENT POLICY
C ICP t4111MED
Revised 1/15/91
\invpol
The purpose of this policy is to define the guidelines
Policemen's Pension and Relief Fund Board in selecting
for the Policemen's Pension and Relief Fund.
Investment objectives:
A. To protect the Fund's assets while insuring systematic
and adequate funding of plan distributions and benefits
to participants and their beneficiaries.
Be To earn the highest possible total return (capital
appreciation plus current return), consistent with
prudent levels of risk.
C. The long-term goal is to realize a minimum annual
absolute rate of return equal to a weighted average
income yield on the Fund's total portfolio of 6% to
satisfy actuarial projections. The Board expects the
total fund, as well as each component, (ie: equity fund,
balanced fund, fixed
income fund, etc.) to:
1. Perform in the top one-third of an evaluation
services universe using a Standard and Poors
Index;
2. Achieve a net return equal to the S & P 500
rate of return for equities;
3. Achieve a net return ,inclusive of fees, equal
to the Shearson/Lehman Government/Corporate
Bond Index for fixed income; and
4. Achieve a net return ,inclusive of fees, at
least equal to the combination of the S & P
500 and Shearson/Lehman Government/Corporate
Bond Index for balanced funds.
Investment Guidelines:
A. Adherence to all applicable Arkansas Statutes is
required, particularly A. C. A. 24-10-401 --24-11-410
of 1987 as amended.
Be Investments and reinvestment shall be made in
accordance with the prudent investor rule as interpreted
and defined by the Federal Employees Retirement Income
Security Act (ERISA) of 1974. This rule states that
in making investments, the fiduciary shall exercise
the same judgement and care which an institutional
investor of ordinary prudence, discretion and
intelligence exercises in the management of large
• CITY OF FAYETTEVILLE, ARKANSAS
POLICEMEWS PENSION & RELIEF FUND
INVESTMENT POLICY
investments entrusted to it, considering probable safety
of capital as well as probable income.
C. If professional investment counsel is employed to
execute transactions as a money manager, the following
is required:
1. Investment counsel may be comprised of more than
one professional firm in order to segregate various
duties and powers.
2. Investment counsel shall be registered with the
Arkansas Securities Department and/or the
Securities and Exchange Commission (SEC). Proof
of current registration shall be made annually to
the Board.
3. Investment counsel shall be retained under contract
awarded on the basis of competitive bid. Award of
the contract will not be required to be solely on
lowest bid. All contracts shall include a 30 day
cancellation provision.
4. The investment counsel shall have full power to
hold, purchase, sell, assign, transfer or dispose
• of any of the moneys or investments of the fund so
long as such activities are in accordance with the
following guidelines:
a. No more than 2% of the fund's total assets
valued at cost be invested in the equities of
any one company or affiliated group of
companies. (Each telephone company issuer
shall be considered a separate & distinct
issuer). Equities purchased for the account will
carry a minimum Standards & Poors rating of "B-"
with a weighted average of the equity portfolio
being equal to a Standards & Poors rating of
"B+" or better.
b. No more than 11% of the fund's total assets
may be invested in any one debt security of
any one issuer or intermediary. This does not
apply to U. S. Treasury or government
guaranteed or agency debt securities.
c. Any fixed income securities shall carry an
investment rating of "A" or better by Moody's
and "A" by Standard & Poors.
d. Short term investments shall consist of direct
U. S. Government obligations such as U. S.
Treasury Bills, repurchase agreements fully
• collateralized by U. S. Treasury issues,
2
n
LJ
n
LJ
•
YETTEVILLE, ARKANSAS
S PENSION & RELIEF FUND
POLICY
certificates of deposit not to exceed $100,000
at any national bank or federal savings and
loan institution, and corporate issues of one
year maturity or less. Funds may be held in
good quality money market funds during periods
of purchasing securities.
e. Investments in international securities that are
not exchange -traded American Depository Receipts
shall be made only after securing approval by the
majority of the Board at a regularly scheduled
meeting.
f. In accordance with Arkansas Statute 12-3307.15,
no funds shall be invested in companies engaged
in business in or with the Republic of South
Africa which have.not adopted the "Statement
of Principles of U. S. Firms with Affiliates in
the Republic of South Africa" Sullivan
principles.
5. Investments and reinvestments shall only be made in
in accordance with the prudent investor rule, as
interpreted by the Federal ERISA of 1974.
6. Investment counsel shall provide the Board a
written investment policy and promptly provide the
Board with subsequent policy changes in writing.
The policy shall adhere to guidelines as set forth
in this document.
7. Investment counsel shall file a written report with
the Board , for the period since the last report,
setting forth the following:
a. All investments purchased and sold, all
receipts and disbursements and any other
transactions concerning the Fund's account
on a monthly basis.
b. Cost and market value of all investment
categories on a monthly basis.
c. Current yield at market on a monthly basis.
d. Total investment return of the total Fund as
well as investment return by asset category
for the most recent quarter. This quarterly
information should include year to date and
• CITY OF FAYETTEVILLE, ARKANSAS
POLICEMEN'S PENSION & RELIEF FUND
INVESTMENT POLICY
previous year return figures.
e. Average maturities of applicable securities
on an annual basis.
f. Comparison of actual asset allocation to
established asset allocation guidelines
on a quarterly basis.
g. Short and long-term forecasts of economic
conditions which have an impact on invest-
ments at least quarterly.
h. Projected earnings for the Fund for the next
annual period at least quarterly.
i. A list of all transaction fees as cents per
share and percent of trade value and the
total amount of transaction fees on a monthly
and year to date basis.
8. If the Board chooses to direct a specific invest-
40
ment activity, the investment counsel shall be so
notified in writing. The Board must approve such
action during a regularly scheduled meeting.
9. The investment counsel shall select brokers to
handle transactions on a competitive bid basis at
least quarterly. A report of these bids and awards
shall be submitted to the Board quarterly.
III. Volatility and Liquidity:
A. Consistent with the desire for adequate diversification,
this investment policy is based upon the assumption that
the volatility of the portfolio will be similar to that
of the overall market. Consequently, it is expected
that the volatility of the total portfolio, in
aggregate, will be reasonably close to that of a
weighted composite of market indexes (e.g. Standard &
Poors 500 index for stocks and Salomon Brothers Broad
Grade Index for bonds).
B. While there is no immediate requirement for the
investment managers to maintain liquid reserves for
payment of pension benefits, the Board of Trustees will
monitor the liquidity needs of the plan with the
• managers on at least an annual basis.
4
• CITY OF FAYETTEVILLE, ARKANSAS
POLICEMEN'S PENSION & RELIEF FUND
INVESTMENT POLICY
IV. Asset-Allocation/Diversification:
A. The maximum allocation of investment categories shall
be 408 for equities and the balance in fixed income
(includes cash equivalents).
Be A specific asset allocation shall be approved by the
Board and shall be segregated as a percentage for
equities, fixed income and cash equivalents. The specific
asset allocation shall be reviewed at least semi-annually
with the investment counsel. Any changes shall be
transmitted to the investment counsel in writing. The
allocation shall be within the following guidelines:
1. Cash and Cash Equivalents: 108-25$
Short term investments shall consist of
obligations of the U. S. Government, U. S.
Agencies and corporate issues of one to
three year maturity or less, repurchase
agreements, certificates of deposit and
•\ the highest two grade of commercial paper.
Additionally, any good _quality money market
funds may be utilized.
2. Fixed Income: 158-758
The quality of fixed income securities shall
not be rated less than "A" by Moody Is or
Standard an Poors. Any one issue shall not
exceed 158 of the fixed income portfolio at
cost without Board approval. only after the
Board has approved any recommendation may the
investment advisor take such action. Whenever
possible, call protection shall be integrated
into the portfolio to stabilize the current
income and marketability of the portfolio.
3. Equities: 208-408
Managers shall have no restrictions as to the
percentage of their diversification except as
follows: Equity investments in any single
issue shall not exceed 58 of the cost value of
the total equity portfolio. Private place-
ments are permissible.
C
i
• CITY OF FAYETTEVILLE., ARKANSAS
POLICEMEN'S PENSION & RELIEF FUND
INVESTMENT POLICY
(in terms of the stock/bond ratio,
diversification, volatility, and style);
3. The opportunities available in both the
equity and bond markets; and
4. Material changes in the counsels'
organization; such as philosophical and
personnel changes.
vi. Communication and Review:
Ongoing communication by phone, letter, or meeting will be
accomplished as deemed necessary by either the investment
counsel and/or the Board of Trustees. A review of the fund's
overall performance will be scheduled to occur quarterly; and
that review will be done in person. A copy of all trades will
be sent by the money manager to the City Manager's office to be
distributed to the Board for information purposes only. The
Board will look forward to specific investment ideas and how
they should affect the portfolio's performance. Addition-
ally, any communications concerning the outlook of the
• economy, business environment and other related matters would
be information well received by the Board.
•
7
City of Fayetteville, Arkansas \POLPR01
Policemen0s Pension 8 Relief Fund
Plan Projections - 1/1/90
54,009,866
Benefit Payments Eaply-6% Court Investment
.................. City -12% Fines Property State Earnings Ending
Year Retirees! Active Contrib. 8 Fees Taxes Insurance (6%) Assets
_______________ ..... __---- -------- ___ ______________________ ------ _---- ___________ ___________
1987 2330203. 750982 59,769 115,780 830791 1410286
1988 244,334 82,918 560841 122,813 80,768 169,899
1989 2638333 1190632 52,283 1280295 115,732 217,806
1990 2888122 120,592 69,234 141,500 1300499 3500000 4,5390000
1990 $278,930 $30424 $114,248 $55,000 $1200000 $100,000 $243,799 54,360,558
1991 2760798 90335 118,703 55,000 1200000 990350 264,841 48732,319
1992 274,632' 17,351 124,065 55,000 120,000 98,700 287,113 50125,214
1993 2720433 310294 1270368 55,000 120,000 98,050 3108414 5,5321319
1994 2700201 50,040 128,805 55,000 120,000 970400 334$68 5,947,651
1995 267,938! 690390 128,938 550000 1208000 96,750 358,760 6,3690771
1996 2650639 88,005 1290925 55,000 120,000 96,100 383,608 60800,760
1997 2630294 1051808 1300223 55,000 1200000 95,450 4080993 7,2410324
1998 260,891 131,237 131,700 550000 120,000 941800 4340761 7,685,457
1999 2581414 157,055 1260974 556000 120,000 94,150 460,547 8,1260659
2000 255,841 185,083 127,979 55,000 1200000 930500 4860266 8,568,480
2001 2530145 221,697 1201338 55,000 120,000 92,850 511,509 8,9930335
2002 250,301 262,148 1140722 55,000 120,000 920200 535,684 90398,492
• 2003 247,292 3100706 103,427 558000 1200000 910550 5580269 90768,740
2004 244,105 364,932 908075 550000 120,000 90,900 578,533 1000940211
2005 2400733 426,050 730172 550000 1200000 90,250 595,802 1003610652
2006 2371175 479,981 538087 550000 1200000 89,600 609,715 1005718898
2007 233,426. 520,475 394304 55,000 1208000 880950 620,795 10,742,046
2008 229,478 550,543 27,358 55,000 120,000 88,300 629,842 1008820525
2009 2256327 576,162 200462 554000 1200000 87,650 637,400 11,001,548
2010 220,964 598,386 101173 556000 120,000 87,000 643,678 118098,049
2011 216,384 6078053 5,690 556000 1200000 860350 649,191 11,190,843
2.012 2111510 6080938` 30192 55,000 1206000 860037 6540764 1102890388
2013 2060488 606,858 2,784 55,000 1200000 851292 660,855 11,399,973
2014 2010206 603,999 20398 550000 120,000 840438 667,697 11,5240301
2015 1950648 6018255 2,114 550000 120,000 830568 6758372 11,6630452
2016 189,802 597,212 10758 55,000 120,000 828530 6836975 110819,701
2017 183,653 593,558 10501 550000 120,000 810503 693,606 1109940100
2018 1770185' 589,008 921 55,000 1200000 800347 704,348 12,188,523
2019 1700385 5860115 669 55,000 120,000 790331 716,266 12,403,289
2020 1630250 5800661 298 558000 1200000 780010 7296479 128642,165
2021 1550782 5720407 0 558000 120,000 76,362 744,225 128909,563
2022 1470998 562,592 0 558000 120,000 74,516 760,742 13,2096231
2023 1398752 5510898 0 55,000 120,000 72,530 7790230 13,5440341
2024 1310462 5400291 0 55,000 120,000 708444 7990871 130917,903
2025 1220946 5270735 0 550000 120,000 68,234 822,851 14,333,307
2026 1140263 514,200 0 550000 1200000 65,904 8480372 14,7940120
• 2027 1050486 499,663 0 55,000 120,000 63,459 8760647 1503040077
2028 960694 484,118 0 550000 1208000 60,907 907,898 150867,070
2029 874966 467,585 0 55,000 1200000 58,258 9421355 16,4870132
t
•
City of Fayetteville, Arkansas
Policemen's Pension & Relief Fund
Asset Allocation — Cost Basis
January 31, 1991
DEAN WITTER
Dean Witter
Madision Investment
Acorn Asset Management
TOTAL DEAN WITTER
•LONGER INVESTMENTS, INC.
CITY HELD INVESTMENTS
TOTAL FUND
PERCENT OF TOTAL
•
p f /3
a-;�I-ql
\BENIPOLINV
Cash &
Fixed
$0
Percent
Equivalent
Income
Equities
Total Of
(10-25%)
(15-75%)
(20-40%)
Total
$5499407
$609000
$0
$609:407
13%
1699750
900,000
0
1,06%750
24%
334,644
350,000
319,575
12004;219
22%
95%
61%
59%
26%
1,053,801
11310,000
319,575
2;683,376.
59%
3%
23°h
74%
".320/co'
349284
494,403
931,542:::.
1,460229
32%
2%
16%
0%
8%
23,737
3509000
0 '`'
` 373;737
8%
;,$1,111822
$2,154,403
$1,251,117",
$4517;342`
100%
------
------
------
------
25% 100%
( S t
•
u
E�tYETTEVI LLE
THE CITY OF FAYETTEVILLE, ARKANSAS
January 21, 1991
Sheriff Kenneth McKee
Washington County Sheriff's Office
114 North College Avenue
Fayetteville, Arkansas 72701
RE: George David PRESTON
Dear Sheriff McKee:
POLICE DEPARTMENT
Our records on PRESTON indicate he was initially employed by
the Fayetteville Police Department on October 27, 1969. He
subsequently resigned for medical reasons on April 25, 1983. Since
the retirement system in which PRESTON was a member provided for a
20 -year plan, and since more than 20 years has elapsed since his
original date of hire, no consideration will be given to
reinstating PRESTON with the Fayetteville Police Department.
The Commission on Law Enforcement
Little Rock should have all pertinent
retirement from our department in 1983.
sincerely,
L
Richard L. Watson
Chief of iPolice
P. O. BOX 1988
160 WEST ROCK STREET 72702
501 521-8050
FAX 501 521-5876
Standards and Training in
files on PRESTON since his
1 > r
A - 342 018786 049 END 2/20/91 2 CITY OF FAY�ETsTEVILLE POLICE
re
.C.C"JSTODIAL POSITIONS c rAj f �CG
DATE QUANTITY SYMBL MGN PLAN NR DIV RE PRICE VALUE MARGINED
2/19 551x262 ILAF 024004937 . 1.00 551x262.00 — C ASH
.CASH POS 1 OF 1 2/08/91
0o29CR T/D 0.29CR S/D 60x600#00 MKT 0.29CR CSH
SECURITY OPN COST PRICE UNITS MKT VALUE SYMBOL
FED FARM CRED BY. 910 91JL22 N/0 100.875?101? 60x000 60600 8042K
r
616
F
A 342 015178"049 END 2/20/91 2 CITY OF FAYETTEVILLE POLICE PENSIO
C.CUSTODIAL POSITIONS Oil PlYd ✓
•DATE QUANTITY SYMBL MGN PLAN NR DIV RE PRICE VALUE MARGINED
2/19 132x338* ILAF 023996279 1.00 132x338.00
�- O.CASH POS 1 OF 9 2/20/91
0.41CR T/D 1Or906.26CR S/D 976,250.00 MKT 0.00 CSH
SECURITY OPN COST PRICE UNITS MKT VALUE SYMBOL
TORONTO DOM US $ 9900 99FBRG N/0 100.000?104 1/8? 50000 52062 TB847
DAYTON HUDSON CO 9400 01FBRG N/0 102.739?100 1/4? 50000 50125 TC629
XEROX CREDIT 101250 99AP15 N/0 99.750?102 3/8? 50x000 51187 TW454
DEAN WITTER SEARS LIQUID ASSET N/0 1.000 ?1? 40x464Sx 40464 ILAF
US TSY NOTE 850 00FB15 N/O 100.750?104? 100000 104000 B01D5
FFCB 086500 990C N/0 98.125?103 5/8? 175x000 181343 808H2
US TSY NOTE 8875 99FB15 N/O 103.000?106 1/8? 150x000 159187 809W1
FNMA 082000 96DE23 N/0 97x375?100 7/8? 325x000 327843 818M6
EASTMAN KODAK CO 9125 x98MHRG A— 98.000?101? 50x000 50500 99968
0
-� to g, .SgS"
L
F
9�
A 342 018922 049 3 2/20/91 2 CITY OF FAYETTEVILLE PPOOLICE PENSIO
TE
C.CUSTODIAL POSITIONS , / co" '"LI
DATE OUANTITY SYMBL MGN PLAN NR DIV RE PRICE VALUE MARGINED
2/19 444r4T3 ILAF 024004945 1.00 9V,ii3-80 - CASH
O.CASH POS 1 OF
18
2/20/91
59x531.63 T/D
0.27CR S/D
808050.00
MKT
0.00 CSH
SECURITY
OPN
COST
PRICE
UNITS
MKT VALUE
SYMBOL
GMAC 8750
96FBRG
N/O
100.715
?99
3/4?
50x000
49875
TC632
AMER TEL R TELEG COMPANY
NY
H
29.250
33
7/8
17000
33875
T
AVON PRODS PFD EOTY REDM
$2
N/O
26.197
29
5/8
2000
71100
AVPPR
BLACK AND DECKER CORP
H
9.125
12
1/2
11000
12500
BDK
BOEING CO
-H
49.486
48
400 x
19200
BA
EASTMAN KODAK CO
B/H
39.125
45
3/4
300
13725
Ell
GTE CORPORATION
31
28.250
31
1/4
17000
31250
GTE
GENL ELECTRIC CO
BRL
51.750
68
3/8
400
27350
GE
MOTOROLA INC
21
62.250
61
5/8
300 x
18487
MOT
FFG INDUSTRIES INC
B
38.875
54
1/2
300
16350
FFG
PACIFIC TELESIS GROUP
H
44.500
42
600
25200
PAC
PEPSICO INC NC
BRL
25.375
31
5/8
800
25300
PEP
PHILIP MORRIS_COS..INC
BRL
48.000
64
1/8
500
32062
MO
SHL TRNSdTRAD PLC NY SH
NEW
-2x
52.000
53
7/8
_
400
21550
SC
SOUTHWESTERN BELL CORP
H
54.750
54
3/4
600
32850
SBC
US TSY NOTE 8125
93JN30
N/O
103.000?102
3/8?
200x000
204750
801F9
WASTE MANAGEMENT INC
B/H
42.125
39
1%4
500 x
19625
WMX
US TSY NOTE 825
92AU15
N/0
102.000?102?
150x000
153000
810C2
77 rt4L ✓A L 0 c=
0-
/ o 2, �4eoe,�
l
6211 yto L — CAsN
•
0
0
i > f
DEAN WITTER REYNOLDS, INC.
Firstsouth Centre, Suite 200, 280 North College, Fayetteville, AR 72701.
Telephone (501) 575-1400 Rogers Area (501) 831-7000 W=1(800)487-4880
�oPTFo�io
XLI�OCArIOIV
Ac 4L
3 ,4cars
�/� 39�, S97 - BorJDs - SD• ��
1391 500 Y
Asa, 2O?y
3) V 3 7
CAsH —
_ Saraw —
33.7%
P®6 CZ -,kI -qI
PROPOSED
• CITY OF FAYETTEVILLE, ARKANSAS page 1
POLICEMEN'S PENSION AND RELIEF FUND Revised 1/15/91
INVESTMENT POLICY \invpol
PURPOSE: The purpose of this policy is to define the guidelines
for the Policemen's Pension and Relief Fund Board in selecting
assets for the Policemen's Pension and Relief Fund.
i. Investment Objectives:
A. To protect the Fund's assets while insuring systematic
and adequate funding of plan distributions and benefits
to participants and their beneficiaries.
B. To earn the highest possible total return (capital
appreciation plus current return), consistent with
prudent levels of risk.
C. The long-term goal is to realize an annual absolute rate
of return equal to a weighted average income yield on the
Fund's total portfolio of 6% to satisfy actuarial
projections. The Board expects the total fund, as well as
each component, (ie: equity fund, balanced fund, fixed
,income fund, etc.) to:
1. Perform in the top one-third of an evaluation
• services universe using a Standard and Poors
Index;
2. Achieve a net return equal to the S & P 500
rate of return for equities;
3. Achieve a net return ,inclusive of fees, equal
to the Shearson/Lehman Government/Corporate
Bond Index for fixed income; and
4. Achieve a net return ,inclusive of fees, at
least equal to the combination of the S & P
500 and Shearson/Lehman Government/Corporate
Bond Index for balanced funds.
II. Investment Guidelines:
A. Adherence to all applicable Arkansas Statutes is
required, particularly A. C. A. 24-10-401 --24-11-410
of 1987 as amended.
B. Investments and reinvestment shall be made in
accordance with the prudent investor rule as interpreted
and defined by the Federal Employees Retirement Income
Security Act (ERISA) of 1974. This rule states that
in making investments, the fiduciary shall exercise
the same judgement and care which an institutional
investor of ordinary prudence, discretion and
intelligence exercises in the management of large
• investments entrusted to it, considering probable safety
CITY OF FAYETTEVILLE, ARKANSAS PROPOSED
• POLICEMEN'S PENSION & RELIEF FUND
INVESTMENT POLICY
of capital as well as probable income.
C. If professional investment counsel is employed to
execute transactions as a money manager, the following
is required:
1. Investment counsel may be comprised of more than
one professional firm in order to segregate various
duties and powers.
2. Investment counsel shall be registered with the
Arkansas Securities Department and/or the
Securities and Exchange Commission (SEC). Proof
of current registration shall be made annually to
the Board.
3. Investment counsel shall be retained under contract
awarded on the basis of competitive bid. Award of
the contract will not be required to be solely on
lowest bid. All contracts shall include a 30 day
cancellation provision.
4. The investment counsel shall have full power to
hold, purchase, sell, assign, transfer or dispose
of any of the moneys or investments of the fund so
• long as such activities are in accordance with the
following guidelines:
a. No more thanjA of the fund's total assets
valued at cost be invested in the equities of
any one company or affiliated group of
companies. (Each telephone company issuer
shall be considered a separate & distinct
issuer) ._Equit s Rurchased for the account will
carry a minimum Standards & Poors rating"of "B-"
with a weighted average of the equity portfolio
being equal to a Standards & Poors rating of
"B+" or better.
b. No more than '1r W'of the fund's total assets
may be invested in any one debt security of
any one issuer or intermediary. This does not
apply to U. S. Treasury or government
guaranteed or agency debt securities.
C, Any fixed income securities shall carry an
investment rating of "A" or better by Moody's
and "A" by Standard & Poors.
d. Short term investments shall consist of direct
U. S. Government obligations such as U. S.
Treasury Bills, repurchase agreements fully
collateralized by U. S. Treasury issues,
certificates of deposit not to exceed $100,000
0
a
• CITY OF FAYETTEVILLE, ARKANSAS PROPOSED
POLICEMEN'S PENSION & RELIEF FUND
INVESTMENT POLICY
at any national bank or federal savings and
loan institution, and corporate issues of one
year maturity or less. Funds may be held in
good quality money market funds during periods
of purchasing securities.
e. Investments in international securities fha£ are
not exchange -traded American Depository Receipts
shall be made only after securing approval by the
majority of the Board at a regularly scheduled
meeting.
f. In accordance with Arkansas Statute 12-3307.15,
no funds shall be invested in companies engaged
in business in or with the Republic of South
Africa which have not adopted the "Statement
of Principles of U. S. Firms with Affiliates in
the Republic of South Africa" Sullivan
principles.
5. Investments and reinvestments shall only be made in
in accordance with the prudent investor rule, as
interpreted by the Federal ERISA of 1974.
• 6. Investment counsel shall provide the Board a
written investment policy and promptly provide the
Board with subsequent policy changes in writing.
The policy shall adhere to guidelines as set forth
in this document.
7. Investment counsel shall file a written report with
the Board , for the period since the last report,
setting forth the following:
a. All investments purchased and sold, all
receipts and disbursements and any other
transactions concerning the Fund's account
on a monthly basis.
b. Cost and market value of all investment
categories on a monthly basis.
c. Current yield at market on a monthly basis.
d. Total investment return of the total Fund as
well as investment return by asset category
for the most recent quarter. This quarterly
information should include year to date and
• previous year return figures.
3
CITY OF FAYETTEVILLE, ARKANSAS P R O P O S E D
• POLICEMEN'S PENSION & RELIEF FUND
INVESTMENT POLICY
e. Average maturities of applicable securities
on an annual basis.
f. Comparison of actual asset allocation to
established asset allocation guidelines
on a quarterly basis.
g. Short and long-term forecasts of economic
conditions which have an impact on invest-
ments at least quarterly.
h. Projected earnings for the Fund for the next
annual period at least quarterly.
i. A list of all transaction fees as cents per
share and percent of trade value and the
total amount of transaction fees on a monthly
and year to date basis.
8. If the Board chooses to direct a specific invest-
ment activity, the investment counsel shall be so
notified in writing. The Board must approve such
• action during a regularly scheduled meeting.
9. The investment counsel shall select brokers to
handle transactions on a competitive bid basis at
least quarterly. A report of these bids and awards
shall be submitted to the Board quarterly.
III. Volatility and Liquidity:
A. Consistent with the desire for adequate diversification,
this investment policy is based upon the assumption that
the volatility of the portfolio will be similar to that
of the overall market. Consequently, it is expected
that the volatility of the total portfolio, in
aggregate, will be reasonably close to that of a
weighted composite of market indexes (e.g. Standard &
Poors 500 index for stocks and Salomon Brothers Broad
Grade Index for bonds).
B. While there is no immediate requirement for the
investment managers to maintain liquid reserves for
payment of pension benefits, the Board of Trustees will
monitor the liquidity needs of the plan with the
managers on at least an annual basis.
• 4
• CITY OF FAYETTEVILLE, ARKANSAS
POLICEMEN'S PENSION & RELIEF FUND
INVESTMENT POLICY
•
0
Iv. Asset Allocation/Diversification:
PROPOSELu
A. The maximum allocation of investment categories shall
be 40% for equities and the balance in fixed income
(includes cash equivalents).
B. A specific asset allocation shall be approved by the
Board and shall be segregated as a percentage for
equities, fixed income and cash equivalents. The specific
asset allocation shall be reviewed at least semi-annually
with the investment counsel. Any changes shall be
transmitted to the investment counsel in writing. The
allocation shall be within the following guidelines:
1. Cash and Cash Equivalents: 10%-25$
Short term investments shall consist of
obligations of the U. S. Government, U. S.
Agencies and corporate issues of one to
three year maturity or less, repurchase
agreements, certificates of deposit and
the highest two grade of commercial paper.
Additionally, any good quality money market
funds may be utilized.
Fixed Income: 15%-75%
The quality of fixed income securities shall
not be rated less than "A" by Moody Is or
Standard an Poors. Any one issue shall not
exceed 15% of the fixed income portfolio at
cost without Board approval. Only after the
Board has approved any recommendation may the
investment advisor take such action. Whenever
possible, call protection shall be integrated
into the portfolio to stabilize the current
income and marketability of the portfolio.
Equities: 20$-40%
Managers shall have no restrictions as to the
percentage of their diversification except as
follows: Equity investments in any single
issue shall not exceed 5% of the cost value of
the total equity portfolio. Private place-
ments are permissible.
CITY OF FAYETTEVILLE, ARKANSAS
• INVESTMENTPOLICY
POLICEMEN'SPENSION& RELIEF FUND PROPOSED
C. The Board of Trustees recognizes the need for
diversification of the plan assets in order to minimize
the risk of large losses. Consequently, the total
portfolio will be structured to maintain high levels of
diversification, consistent with prudent investment
practices and with the Board's desire to stress the
principle of preservation of capital.
v. Monitoring the Performance of the Investment Process:
A. At least semi-annually, the Board shall review its
investment methodology, including the investment
policy.
B. A five (5) year time frame shall be used to evaluate
real investment return.
C. If a investment counsel is employed, the manager's
performance shall be measured over a five (5) year time
frame. Consideration shall be given for investment market
condition during the period and adherence to the Board's
• investment policy guidelines. If the Board so chooses,
a review of the money manager's performance over the
cycle shall be made by an independent third party.
D. Semi-annually, the City Accounting Division shall prepare
a schedule which computes the simple weighted average
investment rate of return which considers both realized
and unrealized (market value adjustment) income. (This
is the same type schedule as required by the Arkansas
Pension Review Board for actuary information.)
E. The Board of Trustees may opt to employ a professional
service to perform regular investment performance
analysis on the portfolio. Payment for this service
can be made through directed commission business, which
is an option that may be chosen.
F. The Board of Trustees will meet a minimum of semi-
annually with its investment counsel. At that time they
will review:
1. The counsels' adherence to the policy
guidelines;
2. Comparison of the counsels' results
• against funds using similar policies
6
CITY OF FAYETTEVILLE, ARKANSAS PROPOSED
• POLICEMEN'S PENSION & RELIEF FUND
INVESTMENT POLICY
(in terms of the stock/bond ratio,
diversification, volatility, and style);
3. The opportunities available in both the
equity and bond markets; and
4. Material changes in the counsels'
organization; such as philosophical and
personnel changes.
VI. Communication and Review:
Ongoing communication by phone, letter, or meeting will be
accomplished as deemed necessary by either the investment
counsel and/or the Board of Trustees. A review of the fund's
overall performance will be scheduled to occur quarterly; and
that, review will be done in person. A copy of all trades will
be sent by the money manager to the`City,Manager(!s office to be
distributed to the Board fqe information, purposes only. The
Board will look forward to specific investment ideas and how
they should affect the portfolio's performance. Addition-
ally, any communications concerning the outlook of the
economy, business environment and other related matters would
be information well received by the Board.
0
PP /5
O? -.Z I -q I
DRAFT
M
I
PURPOSE: The
for the Police
for the Police
CITY OF FAYETTEVILLE, ARKANSAS
POLICEMEN'S PENSION AND RELIEF FUND
INVESTMENT POLICY
purpose of this policy is to define the guidelines
Pension and Relief Fund Board in selecting assets
Pension and Relief Fund,
I. Investment Objectives
A. To protect the Fund's assets while insuring systematic
and adequate funding of plan distributions and benefits
to participants and their beneficiaries.
B. To earn the highest possible total return (capital
appreciation plus current return), consistent with
prudent levels of risk.
C. The long-term goal is to realize an annual absolute rate
of return which exceeds the rate of inflation as
measured by the Consumer Price Index (CPI) by 5% (annual
real rate of return of 5%). The Board of Trustees
recognizes that this real return objective may not be
meaningful during some time periods. In order to ensure
that investment opportunities available over a specific
time period are fairly evaluated, the Board will use
comparative performance statistics to evaluate
investment results. The Board expects the total fund as
well as each component (ie: equity fund, balanced fund,
fixed income fund, etc.) to:
1. Perform in the top one-third of an evaluation
services universe using a Standard and Poors
Index;
2. Achieve a net return equal to the S & P 500
rate of return for equities;
3. Achieve a net return (inclusive of fees) equal
to the Shearson/Lehman Government/Corporate
Bond Index for fixed income; and
4. Achieve a net return (inclusive of fees) at
least equal to the equal combination of the S
& P 500 and Shearson/Lehman Government/
Corporate Bond Index for balanced funds.
The performance will be measured over a 5 year market
• cycle. Short run results will also be monitored and are
expected to be within the top one-third of an evaluation
services universe. Non-performance with regard to these
requirements will cause the Board to evaluate
continuation of the contracts.
0
Performance will take into consideration the risk the
money manager is incurring to achieve the rate of
return. Money managers incurring undue risk according
to the evaluation services universe will be considered
as not properly performing.
II. Volatility and Liquidity
A. Consistent with the desire for adequate diversification,
this investment policy is based upon the assumption that
the volatility of the portfolio will be similar to that
of the overall market. Consequently, it is expected
that the volatility of the total portfolio, in
aggregate, will be reasonably close to that of a
weighted composite of market indexes (e.g. Standard &
Poors 500 index for stocks and Salomon Brothers Broad
Grade Index for bonds).
Be While there is no immediate requirement for the
investment managers to maintain liquid reserves for
payment of pension benefits, the Board of Trustees will
monitor the liquidity needs of the plan with the
managers on at least an annual basis.
• III. Asset Allocation/Diversification
A. The maximum allocation of investment categories shall be
40% for equities and the balance in fixed income
(includes cash equivalents).
Be A specific asset allocation shall be approved by the
Board and shall be segregated as a percentage for
equities, fixed income and cash equivalents. The
specific asset allocation shall be reviewed at least
semi-annually with the investment counsel. Any changes
shall be transmitted to the investment counsel in
writing. The allocation shall be within the following
guidelines:
1. Cash and Cash Equivalents: 10-25%
Short term investments shall consist of
obligations of the U.S. Government, U.S.
Agencies and corporate issues of one to three
year maturity or less, repurchase agreements,
certificates of deposit and the highest two
grades of commercial paper. Additionally, any
good quality money market funds may be
utilized.
• 2. Fixed Income: 15-75%
The
quality of
fixed
income
securities shall
not
be rated
less
than "A"
by Moody's or
• Standard and Poors. Excluding direct maximum :
of any one issue shall not exceed 15% of the
fixed income portfolio at cost. Only after
the Board has approved any recommendation may
the investment advisor take such action.
Whenever possible, call protection shall be
integrated into the portfolio to stabilize the
current income and marketability of the
portfolio.
3. Equities: 20-40%
Managers shall have no restrictions as to the
percentage of their diversification except as
follows: Equity investments in any single
issue shall not exceed 5% of the cost value of
the total equity portfolio. Private
placements are permissible.
co The Board of
Trustees recognizes the
need for
diversification
of the plan
assets in order to
minimize
the risk of large losses.
Consequently,
the total
portfolio will
be structured
to maintain high
levels of
diversification,
consistent
with prudent investment
• practices and with the Board's desire to stress the
principle of preservation of capital.
IV. Investment Guidelines
A. Adherence to all applicable Arkansas Statutes is
required, particularly act 364 of Arkansas Public Acts
of 1981 as amended.
B. Investments and reinvestment shall be made in
accordance with the prudent investor rule as interpreted
and defined by the Federal Employees Retirement Income
Security Act (ERISA) of 1974. This rule states that in
making investments, the fiduciary shall exercise the
same judgement and care which an institutional investor
of -ordinary prudence, discretion and intelligence
exercises in the management of large investments
entrusted to it, considering probable safety of capital
as well as probable income.
C. If professional investment counsel is employed to
execute transactions as a money manager, the following
is required:
.1. Investment counsel may be comprised of more than
one professional firm in order to segregate various
duties and powers.
2. Investment counsel shall be registered with the
• Arkansas Securities Department and/or the
Securities and Exchange Commission (SEC). Proof of
current registration shall be made annually to the
Board.
• 3. Investment counsel shall be retained under contract i
awarded on the basis of competitive bid. Award of
the contract will not be required to be solely on
lowest bid. All contracts shall include a 30 day
cancellation provision.
4. The investment counsel shall have full power to
hold, purchase, sell, assign, transfer or dispose
of any of the moneys or investments of the Fund so
long as such activities are in accordance with the
following guidelines:
a. No more than 5% of the Fund's total assets
valued at cost be invested in the equities of
any one Company or affiliated group of
companies. (Each telephone company issuer
shall be considered a separate and distinct
issuer). The common stock purchased must
carry an investment rating of medium grade or
better by Moody's or a rating of "A" or better
by Standards & Poors.
b. No more than 3% of the Fund's total assets
valued at cost be invested in any one debt
issue. This does not apply to U.S. Treasury
or government or agency debt securities.
C, No more than 5% of the Fund's total assets may
• be invested in any one debt security of any
one issuer or intermediary. This does not
apply to U.S. Treasury or government
guaranteed or agency debt securities.
d. Any fixed income securities shall carry an
investment rating of "A" or better by Moody's
and "A" by Standard & Poors.
e. Short term investments shall consist of direct
U.S. Government obligations such as U.S.
Treasury Bills, repurchase agreements fully
collateralized by U.S. Treasury issues,
certificates of deposit not to exceed $100,000
at any national bank or federal savings and
loan institution, and corporate issues of one
year maturity or less. Funds may be held in
good quality money market funds during period
of purchasing securities.
f. Investments in international securities shall
be made only after securing approval by the
majority of the Board at a regularly scheduled
meeting.
g. In accordance with Arkansas Statute 12-
3307.15, no funds shall be invested in
companies engaged in business in or with the
Republic of South Africa which have not
• adopted the "Statement of Principles of U.S.
Firms with Affiliates in the Republic of South
Africa" Sullivan principles.
5. Investments and reinvestment shall only be made in
accordance with the prudent investor rule, as
. , .
• interpreted by the Federal ERISA of 1974.
6. The investment counsel shall provide the Board a
written investment policy and promptly provided the
Board with subsequent changes in policy in writing.
The policy shall adhere to guidelines as set forth
in this document.
7. Investment counsel shall file with the Board a
written report setting forth for the period since
the last report, which shall include:
a. All investments purchased and sold, all
receipts and disbursements and any other
transactions concerning the Fund's moneys on
a monthly basis.
b. Cost and market value of all investment
categories on a monthly basis.
C, Current yield at market on a monthly basis.
d. Total investment return of the total Fund as
well as investment return by asset category
for the most recent quarter. Also, this
quarterly information should include year to
date and previous year return figures.
e. Average maturities of applicable securities on
an annual basis.
f. Comparison of actual asset allocation to
• established asset allocation guidelines on a
quarterly basis.
g. Short and long-term forecasts of economic
conditions which have an impact on investment
margins at least quarterly.
h. Projected earnings for the fund for the next
annual period at least quarterly.
i. A list of all transactions fees as cents per
share and percent of trade value. Also
including a total amount for transaction fees
on a monthly basis.
8. If the Board chooses to direct a specific
investment activity, the investment counsel shall
be so notified in writing. The Board must approve
such action during a regularly scheduled meeting.
9. The investment counsel shall select brokers to
handle transactions on a competitive bid basis, at
least quarterly. A report of these bids and awards
shall be submitted to the Board monthly.
N. Monitoring the Performance of the Investment Process
A. At least semi-annually, the Board shall review its
investment methodology, including the investment policy.
• B. A five (5) year market cycle shall be used to evaluate
real investment return.
C. If investment counsel is employed, the counsel's
performance shall be measured over a five (5) year
i
• cycle. Consideration shall be given for investment
market condition during the period and adherence to the
Boards's investment policy guidelines. If the Board so
chooses, a review of the investment counsel's
performance over the cycle shall be made by an
independent third party.
D. Semi-annually, the City Accounting Division shall
prepare a schedule which computes the simple weighted
average investment rate of return which considers both
realized and unrealized (market value adjustment)
income. (This is the same type schedule as required by
the Arkansas Pension Review Board for actuary
information.)
E. The Board of Trustees may opt to employ a professional
service to perform regular investment performance
analysis on the portfolio. Payment for this service can
be made through directed commission business, which is
an option that may be chosen.
F. The Board of Trustees will meet semi-annually with its
investment counsels. At that time they will review:
1. The counsels' adherence to the policy
• guidelines;
2. Comparison of the counsels' results against
funds using similar policies (in terms of the
stock/bond ratio, diversification, volatility,
and style);
3. The opportunities available in both the equity
and bond markets; and
4. Material changes in the counsels'
organization; such as philosophical and
personnel changes.
VI. Communication and Review
Ongoing communication by phone, letter, or meeting will be
accomplished as deemed necessary by either the investment
counsel and/or the Board of Trustees. Review of the fund's
overall performance will be scheduled to occur quarterly; and
that review will be done in person. A copy of all trades
will be forwarded to the Board for information purposes only.
The Board will look forward to specific investment ideas and
how they should affect the portfolio's performance.
Additionally, any communications concerning the outlook of
the economy, business environment and other related matters
would be information well received by the Board.
•
A ..
11
DRAFT
CITY OF FAYETTEVILLE, ARKANSAS
POLICEMEN'S PENSION AND RELIEF FUND
INVESTMENT POLICY
PURPOSE: The purpose of this policy is to define the guidelines
for the Police Pension and Relief Fund Board in selecting assets
for the Police Pension and Relief Fund.
I. Investment Objectives
A. To protect the Fund's assets while insuring systematic
and adequate funding of plan distributions and benefits
to participants and their beneficiaries.
B. To earn the highest possible total return (capital
appreciation plus current return), consistent with
prudent levels of risk.
C. The long-term goal is to realize an annual absolute rate
of return which exceeds the rate of inflation as
• measured by the Consumer Price Index (CPI) by 5% (annual
real rate of return of 5%). The Board of Trustees
recognizes that this real return objective may not be
meaningful during some time periods. In order to ensure
that investment opportunities available over a specific
time period are fairly evaluated, the Board will use
comparative performance statistics to evaluate
investment results. The Board expects the total fund as
well as each component (ie: equity fund, balanced fund,
fixed income fund, etc.) to:
1. Perform in the top one-third of an evaluation
services universe using a Standard and Poors
Index;
2. Achieve a net return equal to the S & P 500
rate of return for equities;
3. Achieve a net return (inclusive of fees) equal
to the Shearson/Lehman Government/Corporate
Bond Index for fixed income; and
4. Achieve a net return (inclusive of fees) at
least equal to the equal combination of the S
& P 500 and Shearson/Lehman Government/
Corporate Bond Index for balanced funds.
The performance will be measured over a 5 year market
• cycle. Short run results will also be monitored and are
expected to be within the top one-third of an evaluation
services universe. Non-performance with regard to these
requirements will cause the Board to evaluate
continuation of the contracts.
Performance will take into consideration the risk the
money manager is incurring to achieve the rate of
return. Money managers incurring undue risk according
to the evaluation services universe will be considered
as not properly performing.
II. Volatility and Liquidity
A. Consistent with the desire for adequate diversification,
this investment policy is based upon the assumption that
the volatility of the portfolio will be similar to that
of the overall market. Consequently, it is expected
that the volatility of the total portfolio, in
aggregate, will be reasonably close to that of a
weighted composite of market indexes (e.g. Standard &
Poors 500 index for stocks and Salomon Brothers Broad
Grade Index for bonds).
B. While there
is no
immediate
requirement for
the
investment
managers to
maintain
liquid reserves
for
payment of
pension benefits,
the
Board of Trustees
will
monitor the
liquidity
needs of
the plan with
the
managers on
at least an
annual basis.
Asset Allocation/Diversification
A. The maximum allocation of investment categories shall be
40% for equities and the balance in fixed income
(includes cash equivalents).
B. A specific asset allocation shall be approved by the
Board and shall be segregated as a percentage for
equities, fixed income and cash equivalents. The
specific asset allocation shall be reviewed at least
semi-annually with the investment counsel. Any changes
shall be transmitted to the investment counsel in
writing. The allocation shall be within the following
guidelines:
1. Cash and Cash Equivalents: 10-25%
Short term investments shall consist of
obligations of the U.S. Government, U.S.
Agencies and corporate issues of one to three
year maturity or less, repurchase agreements,
certificates of deposit and the highest two
grades of commercial paper. Additionally, any
good quality money market funds may be
utilized.
• 2. Fixed Income: 15-75%
The quality of fixed income securities shall
not be rated less than "A" by Moody's or
6
•
Standard and Poors. Excluding direct maximum
of any one issue shall not exceed 15% of the
fixed income portfolio at cost. Only after
the Board has approved any recommendation may
the investment advisor take such action.
Whenever possible, call protection shall be
integrated into the portfolio to stabilize the
current income and marketability of the
portfolio.
3. Equities: 20-40%
Managers shall have no restrictions as to the
percentage of their diversification except as
follows: Equity investments in any single
issue shall not exceed 5% of the cost value of
the total equity portfolio. Private
placements are permissible.
C. The Board of Trustees recognizes the
diversification of the plan assets in order t
the risk of large losses. Consequently,
portfolio will be structured to maintain high
diversification, consistent with prudent
practices and with the Board's desire to
principle of preservation of capital.
need for
o minimize
the total
levels of
investment
stress the
IV. Investment Guidelines
A. Adherence to all applicable ,Arkansas Statutes is
required, particularly act 364 of Arkansas Public Acts
of 1981 as amended.
B. Investments and reinvestment shall be made in
accordance with the prudent investor rule as interpreted
and defined by the Federal Employees Retirement Income
Security Act (ERISA) of 1974. This rule states that in
making investments, the fiduciary shall exercise the
same judgement and care which an institutional investor
of ordinary prudence, discretion and intelligence
exercises in the management of large investments
entrusted to it, considering probable safety of capital
as well as probable income.
C. If professional investment counsel is employed to
execute transactions as a money manager, the following
is required:
.1. Investment counsel may be comprised of more than
one professional firm in order to segregate various
duties and powers.
2. Investment counsel shall be registered with the
• Arkansas Securities Department and/or the
Securities and Exchange Commission (SEC). Proof of
current registration shall be made annually to the
Board.
• 3. Investment counsel shall be retained under contract i
awarded on the basis of competitive bid. Award of
the contract will not be required to be solely on
lowest bid. All contracts shall include a 30 day
cancellation provision.
4. The investment counsel shall have full power to
hold, purchase, sell, assign, transfer or dispose
of any of the moneys or investments of the Fund so
long as such activities are in accordance with the
following guidelines:
a. No more than 5% of the Fund's total assets
valued at cost be invested in the equities of
any one Company or affiliated group of
companies. (Each telephone company issuer
shall be considered a separate and distinct
issuer). The common stock purchased must
carry an investment rating of medium grade or
better by Moody's or a rating of "A" or better
by Standards & Poors.
b. No more than 3% of the Fund's total assets
valued at cost be invested in any one debt
issue. This does not apply to U.S. Treasury
or government or agency debt securities.
c. No more than 5% of the Fund's total assets may
• be invested in any one debt security of any
one issuer or intermediary. This does not
apply to U.S. Treasury or government
guaranteed or agency debt securities.
d. Any fixed income securities shall carry an
investment rating of "A" or better by Moody's
and "A" by Standard & Poors.
e. Short term investments shall consist of direct
U.S. Government obligations such as U.S.
Treasury Bills, repurchase agreements fully
collateralized by U.S. Treasury issues,
certificates of deposit not to exceed $100,000
at any national bank or federal savings and
loan institution, and corporate issues of one
year maturity or less. Funds may be held in
good quality money market funds during period
of purchasing securities.
f. Investments in international securities shall
be made only after securing approval by the
majority of the Board at a regularly scheduled
meeting.
g. In accordance with Arkansas Statute 12-
3307.15, no funds shall be invested in
companies engaged in business in or with the
Republic of South Africa which have not
• adopted the "Statement of Principles of U.S.
Firms with Affiliates in the Republic of South
Africa" Sullivan principles.
5. Investments and reinvestment shall only be made in
accordance with the prudent investor rule, as
r-7
L
V. Monitoring the Performance of the Investment Process
A. At least semi-annually, the Board shall review its
investment methodology, including the investment policy.
• B. A five (5) year market cycle shall be used to evaluate
real investment return.
C. If investment counsel is employed, the counsel's
performance shall be measured over a five (5) year
interpreted by the Federal ERISA of 1974. i
6.
The investment counsel shall provide the Board a
written investment policy and promptly provided the
Board with subsequent changes in policy in writing.
The policy shall adhere to guidelines as set forth
in this document.
7.
Investment counsel shall file with the Board a
written report setting forth for the period since
the last report, which shall include:
a. All investments purchased and sold, all
receipts and disbursements and any other
transactions concerning the Fund's moneys on
a monthly basis.
b. Cost and market value of all investment
categories on a monthly basis.
C, Current yield at market on a monthly basis.
d. Total investment return of the total Fund as
well as investment return by asset category
for the most recent quarter. Also, this
quarterly information should include year to
date and previous year return figures.
e. Average maturities of applicable securities on
an annual basis.
f. Comparison of actual asset allocation to
•
established asset allocation guidelines on a
quarterly basis.
g. Short and long-term forecasts of economic
conditions which have an impact on investment
margins at least quarterly.
h. Projected earnings for the fund for the nest
annual period at least quarterly.
i. A list of all transactions fees as cents per
share and percent of trade value. Also
including a total amount for transaction fees
on a monthly basis.
8.
If the Board chooses to direct a specific
investment activity, the investment counsel shall
be so notified in writing. The Board must approve
such action during a regularly scheduled meeting.
9.
The investment counsel shall select brokers to
handle transactions on a competitive bid basis, at
least quarterly. A report of these bids and awards
shall be submitted to the Board monthly.
V. Monitoring the Performance of the Investment Process
A. At least semi-annually, the Board shall review its
investment methodology, including the investment policy.
• B. A five (5) year market cycle shall be used to evaluate
real investment return.
C. If investment counsel is employed, the counsel's
performance shall be measured over a five (5) year
) . .
0
•
01
0
cycle. Consideration shall be given for investment
market condition during the period and adherence to the
Boards's investment policy guidelines. If the Board so
chooses, a review, of the investment counsel's
performance over the cycle shall be made by an
independent third party.
D. Semi-annually, the City Accounting Division shall
prepare
a schedule which computes the simple weighted
average investment
rate of return which considers both
realized
and unrealized (market value adjustment)
income.
(This is the same type schedule as required by
the Arkansas
Pension Review Board for actuary
information.)
E. The Board
of Trustees may opt to employ a professional
service
to perform regular investment performance
analysis
on the portfolio. Payment for this service can
be made
through directed commission business, which is
an option
that may be chosen.
F. The Board
of Trustees will meet semi-annually with its
investment
counsels. At that time they will review:
1.
The counsels' adherence to the policy
guidelines;
2.
Comparison of the counsels' results against
funds using similar policies (in terms of the
stock/bond ratio, diversification, volatility,
and style);
3.
The opportunities available in both the equity
and bond markets; and
4.
Material changes in the counsels'
organization; such as philosophical and
personnel changes.
Communication and Review
Ongoing communication by phone, letter, or meeting will be
accomplished as deemed necessary by either the investment
counsel and/or the Board of Trustees. Review of the fund's
overall performance will be scheduled to occur quarterly; and
that review will be done in person. A copy of all trades
will be forwarded to the Board for information purposes only.
The Board will look forward to specific investment ideas and
how they should affect the portfolio's performance.
Additionally, any communications concerning the outlook of
the economy, business environment and other related matters
would be information well received by the Board.
r
•
• Longer Investments, Incorporated
PORTFOLIO APPRAISAL +v
City of Fayetteville Police Pension Fund
Stock Account
February 20, 1991
Unit Total Market Market Pct. Unit Annual Cur.
Quantity Security Cost Cost Price Value Assets Income Income Yield
........ __ ........ _----- ______ _______ _________ _______ _____--- _ _____ ______ _________ mm -
COMMON STOCK
1,000
Abbott Labs
41.95
418948.68
46.25
46,250.00
4.3
0.840
840.00
1.8
600
Archer Daniels
23.29
13,973.79
21.75
130050.00
1.2
0.100
60.00
0.5
Midland
2,000
Baroid Corp.
7.11
14,222.18
6.75
130500.00
1.2
0.200
400.00
3.0
1,100
Bristol Myers Squibb
60.08
66,093.00
75.00
820500.00
7.6
2.400
2,640.00
3.2
600
Community
29.60
17,760.00
33.00
198800.00
1.8
0.360
216.00
1.1
Psychiatric Center
1,000
Crane Co.
22.58
22,580.00
24.87
248875.00
2.3
0.750
750.00
3.0
1,500
Diebold, Inc.
36.68
550025.00
38.62
57,937.50
5.3
1.600
21400.00
4.1
1,200
Emerson Electric
40.07
48,084.00
42.50
51,000.00
4.7
1.320
1,584.00
3.1
1,600
Fluor Corp.
39.12
62,587.14
44.87
710800.00
6.6
0.320
512.00
0.7
700
Glaxo Holding
35.00
24,500.00
37.00
25,900.00
2.4
0.900
630.00
2.4
800
Inti Business
116.77
93,416.56
138.00
110,400.00
10.2
4.840
31872.00
3.5
Machines
600
Jacobs Engineering
20.60
12,360.00
32.00
19,200.00
1.8
0.000
0.00
0.0
11500
Luby's Cafeterias
18.13
279198.75
19.87
298812.50
2.8
0.460
690.00
2.3
400
Minnesota Mining 8
74.97
290986.44
88.37
35,350.00
3.3
3.120
10248.00
3.5
Mfg.
1,500
Mobil Corp.
62.17
931257.50
60.00
909000.00
8.3
2.900
40350.00
4.8
1,500
Mylan Labs
17.55
260320.00
21.37
32,062.50
3.0
0.200
300.00
0.9
1,000
Pacificorp
19.57
19,570.00
22.25
220250.00
2.1
1.440
10440.00
6.5
• 10200
Philip Morris
44.96
53,948.13
65.00
78,000.00
7.2
1.720
2,064.00
2.6
800
Reader's Digest
28.87
23,096.00
32.75
26,200.00
2.4
0.750
600.00
2.3
700
Schlumberger, LTD
55.02
380511.00
58.25
40,775.00
3.8
1.200
840.00
2.1
600
Toys -R -Us
28.85
170308.50
27.62
16,575.00
1.5
0.000
0.00
0.0
1,500
Tyson Foods
27.66
41,493.75
35.00
520500.00
4.8
0.040
60.00
0.1
500
Walmart Stores
29.03
140514.17
36.12
180062.50
1.7
0.140
70.00
0.4
500
Warner Lambert
64.13
321067.50
76.12
381062.50
3.5
1.760
880.00
2.3
11100
Waste Management
33.85
37,237.50
39.12
43,037.50
4.0
0.360
396.00
0.9
600
Westinghouse Elec
29.94
17,967.00
29.75
17,850.00
1.6
1.400
840.00
4.7
.........
9450026.59
1,0760750.00
---------
-----
99.3
---------
270682.00
-----
2.6
CASH AND EQUIVALENTS
....................
Money Market
70070.73
---------
7,070.73
.........
0.7
.....
7.200
509.09
---------
7.2
-----
71070.73
70070.73
0.7
509.09
7.2
TOTAL PORTFOLIO
.........
952,097.32
1,083,820.73
---------
-----
100.0
---------
28,191.09
-----
2.6
0
•
•
0
Longer Investments, Incorporated
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
Bond Account
February 20, 1991
Unit Total Market Market Pct. Unit Annual Cur.
Quantity Security Cost Cost Price Value Assets Income Income Yield
_____---- ________ _______--- w..... ....... ......... _.... ...... _________ _____
CORPORATE BONDS
1000000 G. E. Capital Corp.
99.86 99,860.00
100.71 100,709.00
18.9
8.000 8,000.00 7.9
8.000% Due 12-01-92
1008000 Philip Morris
100.54 100,543.50
102.49 102,486.00
19.3
9.250 9,250.00 9.0
9.250% Due 12-01-97
Accrued Interest
3,785.42
0.7
---------
200,403.50
------"-
206,980.42
.....
38.9
--------- -----
17,250.00 8.5
GOVERNMENT BONDS
................
100,000 Federal Home Loan 100.00 1008000.00 102.59 1020593.75 19.3 9.150 90150.00 8.9
Mortgage Corp.
9.150% Due 08-08-00
Accrued Interest 305.00 0.1
--------- ......... ..... --------- -----
1000000.00 102,898.75 19.3 9,150.00 8.9
CASH AND EQUIVALENTS
Money Market 24,564.03 24,564.03 4.6 7.200 1,768.61 7.2
--------- --------- ----- _........ .....
24,564.03 24,564.03 4.6 1,768.61 7.2
CERTIFICATE OF DEPOSIT
......................
94,000 Mcllroy Bank 8 Trust 100.00 94,000.00 100.00 94,000.00 17.7 7.805 7,336.70 7.8
(Matures 8-27-91)
7.805% Due 11-27-91
Accrued Interest 11691.52 0.3
......... --------- ----- --------- --_..
94,000.00 95,691.52 18.0 7,336.70 7.8
CERTIFICATE OF DEPOSIT (MONTHLY PYMT.)
......................................
100,000 First USA Bank 100.00 100,000.00 102.25 102,250.00 19.2 8.300 81300.00 8.1
Wilmington, DE 8.3%
1-2-96
8.300% Due 01-02-96
_______ ......... ..... ...______ _____
1000000.00 102,250.00 19.2 8,300.00 8.1
TOTAL PORTFOLIO 518,967.53 5320384.71 100.0 43,805.31 8.2
•
Longer Investments, Incorporated
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
Combined Account
February 20, 1991
COMMON STOCK
1,000
Abbott Labs
Unit
Total
Market
Market
Pct.
Unit
Annual
Cur.
Quantity
---------
Security
--------------------
Cost
--'-...
Cost
.........
Price
.......
Value
.........
Assets
.....
Income
......
Income
.........
Yield
.....
COMMON STOCK
1,000
Abbott Labs
41.95
41,948.68
46.25
46,250.00
2.9
0.840
840.00
1.8
600
Archer Daniels
23.29
13,973.79
21.75
13,050.00
0.8
0.100
60.00
0.5
Midland
Accrued Interest
31785.42
0.2
20000
Baroid Corp.
7.11
14,222.18
6.75
13,500.00
0.8
0.200
400.00
3.0
10100
Bristol Myers Squibb
60.08
660093.00
75.00
82,500.00
5.1
2.400
20640.00
3.2
600
Community
29.60
170760.00
33.00
191800.00
1.2
0.360
216.00
1.1
Psychiatric Center
1,000
Crane Co.
22.58
22,580.00
24.87
24,875.00
1.5
0.750
750.00
3.0
1,500
Diebold, Inc.
36.68
55,025.00
38.62
57,937.50
3.6
1.600
2,400.00
4.1
1,200
Emerson Electric
40.07
48,084.00
42.50
51,000.00
3.2
1.320
1,584.00
3.1
1,600
Fluor Corp.
39.12
62,587.14
44.87
710800.00
4.4
0.320
512.00
0.7
700
Glaxo Holding
35.00
24,500.00
37.00
250900.00
1.6
0.900
630.00
2.4
800
Int8L Business
116.77
93,416.56
138.00
110,400.00
6.8
4.840
3,872.00
3.5
Machines
600
Jacobs Engineering
20.60
12,360.00
32.00
19,200.00
1.2
0.000
0.00
0.0
10500
Luby's Cafeterias
18.13
27,198.75
19.87
29,812.50
1.8
0.460
690.00
2.3
400
Minnesota Mining &
74.97
29,986.44
88.37
35,350.00
2.2
3.120
1,248.00
3.5
Mfg.
1,500
Mobil Corp.
62.17
93,257.50
60.00
90,000.00
5.6
2.900
4,350.00
4.8
10500
Mylan Labs
17.55
260320.00
21.37
32,062.50
2.0
0.200
300.00
0.9
1,000
Pacificorp
19.57
19,570.00
22.25
22,250.00
1.4
1.440
1,440.00
6.5
• 1,200
Philip Morris
44.96
53,948.13
65.00
78,000.00
4.8
1.720
2,064.00
2.6
800
Reader's Digest
28.87
23,096.00
32.75
26,200.00
1.6
0.750
600.00
2.3
700
Schlumberger, LTD
55.02
38,511.00
58.25
40,775.00
2.5
1.200
840.00
2.1
600
Toys -R -Us
28.85
17,308.50
27.62
16,575.00
1.0
0.000
0.00
0.0
1,500
Tyson Foods
27.66
41,493.75
35.00
52,500.00
3.2
0.040
60.00
0.1
500
Walmart Stores
29.03
14,514.17
36.12
18,062.50
1.1
0.140
70.00
0.4
500
Warner Lambert
64.13
32,067.50
76.12
38,062.50
2.4
1.760
880.00
2.3
18100
Waste Management
33.85
37,237.50
39.12
43,037.50
2.7
0.360
396.00
0.9
600
Westinghouse Elec
29.94
17,967.00
29.75
17,850.00
1.1
1.400
840.00
4.7
.........
945,026.59
.........
1,076,750.00
.....
66.6
---------
27,682.00
-----
2.6
CORPORATE BONDS
...............
100,000 G. E. Capital Corp.
99.86 99,860.00
100.71 100,709.00
6.2
8.000 80000.00
7.9
8.000% Due 12.01-92
1000000 Philip Morris
100.54 100,543.50
102.49 102,486.00
6.3
9.250 91250.00
9.0
9.250% Due 12-01-97
Accrued Interest
31785.42
0.2
'.'.'----
2000403.50
---------
2060980.42
-----
12.8
.........
17,250.00
.....
8.5
1
0
•
•
•
CERTIFICATE OF DEPOSIT
94,000 MclLroy Bank 8 Trust 100.00 948000.00 100.00 94,000.00 5.8 7.805 71336.70 7.8
(Matures 8-27-91)
7.805% Due 11-27-91
Accrued Interest 11691.52 0.1
......... --------- ----- -------
948000.00 95,691.52 5.9 71336.70 7.8
CERTIFICATE OF DEPOSIT (MONTHLY PYMT.)
---- _________--- ____------- ________
100,000 First USA Bank 100.00 100,000.00 102.25 102,250.00 6.3 8.300 8,300.00 8.1
Wilmington, DE 8.3%
1-2-96
8.300% Due 01-02-96
Y[�)f:1�39:ilid�G7
1000000.00 102,250.00 6.3
......... 1--------- -----
1,4719064.85 ,616,205.44 100.0
--------- --------- -----
V
F
8,300.00 8.1
--------- ---'-
71,996.40 4.5
--------- -----
--------- -----
Longer Investments, Incorporated
PORTFOLIO APPRAISAL
City of
Fayetteville Police Pension Fund
Combined Account
February 20, 1991
Unit
Total Market
Market
Pct.
Unit
Annual
Cur.
Quantity
..........
Security
....................
Cost
.......
Cost Price
......... .......
Value Assets
......... .....
Income
......
Income
.........
Yield
-----
GOVERNMENT
BONDS
................
100,000
Federal Home Loan
100.00
1000000.00 102.59
102,593.75
6.3
9.150
91150.00
8.9
Mortgage Corp.
9.150% Due 08-08-00
Accrued Interest
305.00
0.0
1000000.00
---------
1020898.75
-----
6.4
---------
90150.00
-----
8.9
CASH AND EQUIVALENTS
Money Market
31,634.76
.........
310634.76
.........
2.0
.....
7.200
2,277.70
------
7.2
31,634.76
31,634.76
2.0
2,277.70
7.2
CERTIFICATE OF DEPOSIT
94,000 MclLroy Bank 8 Trust 100.00 948000.00 100.00 94,000.00 5.8 7.805 71336.70 7.8
(Matures 8-27-91)
7.805% Due 11-27-91
Accrued Interest 11691.52 0.1
......... --------- ----- -------
948000.00 95,691.52 5.9 71336.70 7.8
CERTIFICATE OF DEPOSIT (MONTHLY PYMT.)
---- _________--- ____------- ________
100,000 First USA Bank 100.00 100,000.00 102.25 102,250.00 6.3 8.300 8,300.00 8.1
Wilmington, DE 8.3%
1-2-96
8.300% Due 01-02-96
Y[�)f:1�39:ilid�G7
1000000.00 102,250.00 6.3
......... 1--------- -----
1,4719064.85 ,616,205.44 100.0
--------- --------- -----
V
F
8,300.00 8.1
--------- ---'-
71,996.40 4.5
--------- -----
--------- -----
•
•
11
N m +
P O VOI
I m L L L L-1-1 N .T T T S S S r
m m m m S pJw j j 0CO; O Tpm O n n m D
D•
m m M ms0^Onm^3d=nhh0mP
O m
n m
a n O
ac m "cov ffB Sm 2 gv' Imo c o S
N$ O N71
10 l J J O 0 l
N3 'I 'I 'I m m m J_ m m m N •C m
n m n
J
c n
a
r
m
l
ti
+ W W+� W N W N •O N N+ •O N P A MI N pp• + � • O
• t V V N A V m W W •O P W •O V N W A N Qm N N V P W
INv�� �ii w�Im�a�m oo �mw�I moo• o� K�Nilo o�W iv.�pmQ. n
I m 0 0 0 V VI O O O W O O O P VI O P6
C 0 0 0 0 0 •O m: n
N N N + N++ N++ N+ N+ + N N
W m V 0•O V U . N W W N P N N P N •O N m N W A I T
VI N O• V N VI m VI m W W 0• P I Im
N+ W N+ + N W+ N+ N+ + N+ N + W+ W
A O m P. m m V V+ W N+ N V V W V V O m. m. W. I O
X X X X X X X X X X M X X X X X X X X X X X M X X X•
n
m
�.pp ..pp �VI .�pp .p • v Iop
x X K at X X X X X X K K K K x apt K X t+ O P A N�
a�xxxxxiix •
� A
+ N N+ + N N N + N n m
a` V a` W N V m O V+ •O + m P W V+ m+ P V A W N W W I m
O
+x xa�xa°gxx i't xai xxxa�aix'x xamt+x xxx .x,
+ o+ + o+ o+ 0 0 0 0 r+ o+ m
• A N
I m
A+ N W+ N C W N+ W t N N N P N+ P+ W W N+ N+•� T
♦ >r I
L
O m_
p� + W W+ p r p N VI N N •O W N+ •O N P I!I I/I N+ P+ A •
O� O O A W A W W CO A+ O m Ol j m U1 N m W CO CO A S M I
x � xxxaixaixxxxa�a�aia�CxOxa'�a'gxa�'aYaixa�xx •
•v +IPiI Yww�i���%;saiwra�&a
mwro m
O• N N P N W O 'O N+
O O O+ 0 0 0 0 0+ O O+ O O O+ O++ 0 0 0 N O+
m
O O+ O O N+ O O W+ O N 0 0 0 N O O O O O O O O O•
� O (O
ai � aPta�aameiiiei�iiitaWia�'xa���ame�spea�a'�aPeaWeaNe�xamtameareai � v'8
m
0 0 0 0 0 0 0 0 0+ 0 0 0 0 0 0+ 0 0 0 0 0 0 0 0+ n o m
P VNV m p�o QmWj mN P jmN� •O y� mV Vpm N N VC P VVV O VWI 3mpN� %XII �pWrp W p m •
Ln
X x X X P a( X X aC x X X of X X x X x a X x X at at aNrt
O O p O O O O O p O 0 0 0 0 0 0 0 0 p Op O p Op O O O O p Op O O
+ I p N p W+ W N R W P W p W N V N .O N N N+ P+ m
�pil
mwIwo
�rili �•o"wd.odwogiiA���i
.. .. S OI S OI O O O {.A OS{ 1. .. O.VI awt:tw I N
MgNw
N W O W VNI + W j N N O VI W A W N •WO
VI P N O P V R
I '
P N+ P W P O N m P P+
• � � o aD aD P A A N N
r u O M 1 O O P P O O O O
O m H d r M
O r
� O 1p!1. O'J N�} 1.!t1 3p�I A •O N
p v p r
p O OG N A i
� A m m d O 2N1 N O w S O P f0 P O
6
Z
K �
s o
p p.3.i �p
0 %�}MN 100,0�O o
M N !O O •� ' P
.IP.Ipp� .N
.0,p
• voi = O o P a0 O P P P O
6 X 0 0 �O d• �} N A� N
O p
�� 10n i o o P aMD aM0 P P P O
~ O r f� pPp pAp •O f0 M �
N O Q
0 yG � � pmp ryry !r�
�yY 6 C . r C M �^ � •O A^ O
_ o d
x 0 N m~ C
O U �
as ySK •� O C> O P
> K
6 d
T .pp
NO�pO
d u O �O O •MO N OD � .O
J Q 1
T 2
w C �
L
U d L d N � A N M OJ •O .O
� a
d
d _ _ ' M A M C1 M •O
O. t� COOJ M M !� N N1
s11 o C >_ o P .t o .0 ry a •O
N v p
A M N A P N A
0
e0, O O P V• O N N v •O
N
U O m M O N M J
u
a
M M M M M M M N
8 A W P O N r N
L
d O 0 0 0 0 0 0 O
6y CpM M M M M M M M
E S P P P P P P P P P
A N N M M M M M M M
X 0 0 O O O r O
r N
O O
P
O
d
N
d
N
O
O
O
O
M
Y
O
w
p
m
p
N
J
A
CC
•
O
<
•
u
a
F
�
P
P
A
O
o
P
•AO
P
V
A
P
P
P
N
O
•
L
O
O
M
O
tp0�
O
.AO
J
Pp
O
M
M
M
M
M
M
M
N
d
GE
m
pm
q
�
.Pp
L
O✓
0
0
O
O
P
P
O
O
O
O
O
p
p«
p«
G«
G«
G«
G«
P
P
P
P
P
P
P
P
P
N
N
M
M
M
M
M
M
M
,
O
N
(Y
N
1!1
(O
A
•O
N
C>
O
P
Cl
m
m
m
P
P
O
p
v
p
,
pp
,
O
,On
O
•O
PPM
P
�
yMy
AMA
6
3
�
O
m
P
J
d':
�
d
:
O
O�
N
•O
O
>
II
•
O
•�
«
p
P
p
O
�{
M
I+�
tp
O
N
m
b
0
O
l0
P
P
o
m
•a
�
N
J
r
7
WV
•
m
d
.'•
O
r
P
Np
Np
A•
N
Np
t.0f
O
u
�
>
O
.
•O
.
d
�
v
vOi
.U.
O
O
P
P
P
0
A
N
G
N
N
G
N
•O
N
N
,
O
O
J
M
o
o
aA0
A
P
a0
�
O
O
O
N
Vr
u
o
0
0
0
0
aC
(�pp
��yy
MM
m
m
r
Y
N
O:
�t
•O
O
N
N
p
U>
O
P
N
O
N
M
�t
•O
M
d
O
p
pp
O
•O
O
N
Z
•O
M
O•
d
10
4
O
A
2
C
r
A
d
•�
r
L
d
N
A
,An
M
t0
•O
d
d
L
O
«_
O
P
N
S
•O
N
�f
•O
r
G
L
U
d
L
6
d
n
Irk
M
op
m
.p
•O
O.
M
M
N
O
y
U>
eE
O
O
P
d
O
•O
N
�f
•O
u
a
F
O •p P N P O P •O
O O O O O N O O
�
P
P
A
O
o
P
•AO
P
V
A
P
P
P
N
«
O
PN
N
O
N
N
N
•O
O
M
M
M
O •p P N P O P •O
O O O O O N O O
P
P
P
P
P
P
P
P
P
N
«
m
N
O
O
O
M
M
M
M
M
M
M
N
d
P
m
q
L
0
0
0
0
0
0
M
p
p«
p«
G«
G«
G«
G«
P
P
P
P
P
P
P
P
P
N
N
M
M
M
M
M
M
M
P
Y
N
«
m
N
O
O
O
O
«
«
d
P
m
q
L
A
�
O
•
•
0
V
E
L
p TM
d �-
a>o
■O
14)
N 4)
a` LL
/4)
V/f_!�
V Q
O,+_+ o
ICL J
O
�> LO TZ
a m
4) 06 CV o
LL N
Mmm > �
O` C
L
}� O
T
T
C
N
cc
C)
Q
U.
m
O Co
rn
O C
T ca
T
co
a)
U CA
a) CT
0 M
CD
.n
rn E
C)
T
M Z
ca0
O
O CT
Ch
rn a
T
Cl) T A
M
N
7
Qw
o�
75
T
CA
CD
N
to O A
Ln
T T
01
of
U
fL '
cn
a
C
7
LL
•
0
•
^W
Y
cc
E x
L 00
O G
a oo
/1. W
L L
MO
as
d O
p L
a�
d O
ML
W
O
w O
C
L
m N
U
T
T
N
cc
i
LL
CY/
7
0
G)
0)
rm
Wcm
`
Q
cu
E
N
am
1 1
I
I
i
1
1
1
11
11
i
1
1
I
T
VI
T
N
cd
LT
M
N M
U T
co
O CO
M
M C
T wz
M
N
o
U �
U O
O i./)
a�
n
ai >
T 0
T Z \i
M `V
Q
0 M
U T
OCTM
o E
N
0) a
T
T
CO)
Q M
M
CO)
75
rn �
M
co
N
CO fD qqt N O N 7
v-7
c
7
LL
C
O
cn
C
CL
U
^
I.L
•
•
Lager Investments, Incorporated
REALIZED CAPITAL GAINS AND LOSSES
City of Fayetteville Police Pension Fund
Combined Account
From 01-01-91 Through 02-20-91
Cost
Date Quantity
Security
Basis
Proceeds
Gain Or Loss
01-03-91
500
_______________---------
Laidlaw Inc. Class B
__________
118222.50
__________
80999.69
__------ _____
-28222.81
01-04-91
1,000
Chemical waste
180945.00
21,304.28
28359.28
Management
01-07-91
18000
Eastman Kodak
42,865.00
40,023.66
-2,841.34
01-14-91
18500
Claire's Stores
14,355.00
140332.01
-22.99
01-14-91
1,000
Hershey Foods
35,570.00
35,998.79
428.79
01-14-91
700
Ingersoll-Rand
25,445.00
25,199.15
-245.85
01-14-91
700
J.B. Hunt
108587.50
11,987.50
1,400.00
01-14-91
400
Minnesota Mining 8 Mfg.
290986.44
32,098.92
2,112.48
01-22-91
200
Jacobs Engineering
48120.00
5,094.82
974.82
01-28-91
900
Abbott Labs
37,753.82
39,711.17
1,957.35
01-29-91
300
Ingersoll-Rand
100980.00
126824.57
1,844.57
01-31-91
600
Pacificorp
11,742.00
12,524.58
782.58
01-31-91
250
warner Lambert
16,033.75
17,499.41
1,465.66
02-05-91
500
Ingersoll-Rand
18,300.00
21,699.27
30399.27
02-07-91
18000
Greiner Engineering
13,070.00
14,249.52
1,179.52
-------------
TOTAL GAINS
170904.33
TOTAL LOSSES
-5,332.99
..........
3000976.00
----------
----------
..........
313,547.34
----------
----------
.............
12,571.34
-------------
-------------
n
U
•
Longer Investments, Incorporated
INTEREST, DIVIDENDS, AND EXPENSES
City of Fayetteville Police Pension Fund
Combined Account
From 01-01-91 Through 02-20-91
COMMON STOCK
01-02-91
Walmart Stores
17.50
01-03-91
Chemical Waste Management
40.00
01-03-91
Reebok Int'1.
75.00
01-03-91
Waste Management
72.00
01-10-91
Philip Morris
344.00
01-11-91
Schlumberger, LTD
150.00
01-15-91
Mylan Labs
75.00
01-16-91
Fluor Corp.
80.00
02-01-91
Bristol Myers Squibb
360.00
02-15-91
Abbott Labs
399.00
02-15-91
Pacificorp
576.00
------
2,188.50
GOVERNMENT BONDS
02-08-91
Federal Federal Home Loan Mortgage Corp.
4,575.00
9.150% Due 08-08-00
4,575.00
CASH AND EQUIVALENTS
02-01-91 Money Market 773.32
-------773 32
CERTIFICATE OF DEPOSIT (MONTHLY PYMT.)
......................................
01-30-91 First USA Bank Wilmington, DE 714.72
8.3% 1-2-96
8.300% Due 01-02-96
.............
EXPENSE ACCOUNTS
............
02-01-91 Automated Cash Mgmt. 26.63
-------------
26.63
AFTER FEE PERFORMANCE EXPENSE ACCOUNTS
01-14-91 Management Fee
01-14-91 Management Fee
02-05-91 Northern Trust Fee
2,739.39
1,296.18
400.00
4,435.57
-----
I
Longer Investments, Incorporated
PURCHASE AND SALE REPORT
City of Fayetteville Police Pension Fund
Stock Account
• From 01-01-91 To 02-20-91
Unit
Date Quantity Security Price Amount
--------------------------------------------------------------.............
PURCHASES
01-07-91 1,000 Abbott Labs 40.35 40,350.00
01-04-91 200 Bristol Myers Squibb 62.40 12,480.00
01-04-91 300 Bristol Myers Squibb 62.87 18,861.00
01-29-91 600 Community Psychiatric Center 29.60 171760.00
01-30-91 1,000 Crane Co. 22.58 22,580.00
01-22-91 500 Diebold, Inc. 35.10 17,550.00
01-31-91 500 Diebold, Inc. 37.60 18,800.00
02-07-91 500 Diebold, Inc. 37.35 18,675.00
01-18-91 300 Fluor Corp. 39.25 11,775.00
01-22-91 300 Fluor Corp. 39.37 11,811.00
01-30-91 700 Glaxo Holding 35.00 24,500.00
01-17-91 800 Ingersoll-Rand 36.60 29,280.00
01-23-91 200 Intl Business Machines 120.02 24,005.00
02-07-91 200 Intl Business Machines 130.90 26,180.00
01-07-91 800 Jacobs Engineering 20.60 16,480.00
01-18-91 400 Philip Morris 53.00 21,200.00
01-30-91 800 Reader's Digest 28.87 23,096.00
01-17-91 200 Schlumberger, LTD 53.80 10,761.00
01-04-91 500 Tyson Foods 29.94 14,972.50
01-03-91 300 Waste Management 35.12 10,537.50
• 391,654 00
SALES
01-28-91 900 Abbott Labs 44.12 39,711.17
01-04-91 1,000 Chemical Waste Management 21.30 211304.28
01-14-91 1,500 Claire's Stores 9.55 14,332.01
01-07-91 11000 Eastman Kodak 40.02 40,023.66
02-07-91 1,000 Greiner Engineering 14.25 14,249.52
01-14-91 11000 Hershey Foods 36.00 35,998.79
01-14-91 700 Ingersoll-Rand 36.00 25,199.15
01-29-91 300 Ingersoll-Rand 42.75 12,824.57
02-05-91 500 Ingersoll-Rand 43.40 21,699.27
01-14-91 700 J.B. Hunt 17.12 11,987.50
01-22-91 200 Jacobs Engineering 25.47 51094.82
01-03-91 500 Laidlaw Inc. Class B 18.00 81999.69
01-14-91 400 Minnesota Mining & Mfg. 80.25 32,098.92
01-31-91 600 Pacificorp 20.87 12,524.58
01-31-91 250 Warner Lambert 70.00 17,499.41
313,547 34
•
it
n m 'r c z -I a In 4n m m r m x D- n r m m a a c m m a z •- a] n m c ¢
is n c '3 m [!) .-• n d c -y y am' S m r rJ r ..+ a— a >t o :U m Y a v d x O— ¢
r 11 m in •-� N 9 n [n m •--� m m D r c m .� +1 `+. r •-• m2� 4] .7 m C ti a1.
I$ m m `r+ C— GJ a 1 -r 'I'1 m m n r Y a C n -• r a m f+e
It y N [�] I •- m S m r O m 3 O 2 r O y 2 [!: }
11 O S d O tl w m m d T < 3 ¢ }
m T
m
O P ['l V •- V [n m 47 m moi%. T -i �• ek }
it a o m m. m ro T n m ao a ¢
N m
11 N y y n
11 S Y
11 ¢
if
If c o o G G P- r]l ul is -� m nl c In I.n a cn m ,1 ii• v cn o tr r G o- c w. ¢
If 'O O o G > O C O o O G G G G G G G C C G G p G o O G c G c• ¢
II }
it +
u
N M N N M M N H N M N N M N N N N N N N N N N N ¢ ¢
11 b m -C ?. v �- G +' O 6 •� O •+ •� G N W O a O C O G N O 0 0 4
if:
h
II • W !V `. m a W V r O N V U a• b .-+ is m-0^ w P V .' A N �-• m ¢ ¢
11 'CJf t Cn O G tr P A Y O U1 N a O O N P A O N O tJl a C C O? } ¢
11
11 _ _ .. _ _ _ } M
11
11 ¢Pc
If M
N 11 N rt 4 M
9 k
r II N N N M N Y v .-• Y+
m 11 P P r .N.. N N N Gn so,
N so
11 b .O V 4A V
-ao n m m V 0 0- VI V m w. r '-0 KK
it ¢ < +
o- a it o in c o c cn o c .1<
»�
n }
u
11 M
N 11N N w T}
o— n ir. A rt m¢
11 N N N N N M > •� m¢
m_ II P r
P VI (JI O O O O [JI G .1• r D KK
11 y A }
P 11
V 11 J p V O p O O O O O rt
It }
is KK
N
It M M }
It ¢ a KKn
m It P P N N N o w .+ -O w P •+ y .O m +
-O II O -O Lll V N N m P G -J O .y r x}
11 y
n c+- n- in c c o i_n o is c o o rn o »�
V 11 V V O O C O G C O 6 G O O O ¢
If MIC
if
11 p }
II h }
It ¢ m
H li N ¢ 4 m
_ ¢ y
n KK a }
is
m 11 P P r N VI M •- N } -O ?f ¢ D
a
It N -O fJi •� ••+ Gr lJl N VI KK -O r } y
b 11 m V O P Cn V m A w r T
11 IK O
y Ln 6
111
1 11 1 O C O `O C O O rt¢
II y ¢ Y
it ¢ b
N If M Of, Z
N 11
If 4104- Ads,
W 11 P P ` N •+ w P N N } -p SAbc
4 m
11 ye
11 V O O O O p } D
91 O c O o p G Ik m:p
n KK <
if
li41ft 41k Of,
N N N N N
W O A a a
A 11 m
o— u —0 �� o i. .- -0 m — �1 o- -0 o m
rJ m
o
V ii y ;r -
c o o c c o 0 o c c 66
c c }
w +
n }
u 11 a
r KK
1 rt 4 y
I »�
W ¢
_N 1II m
m 11 P P •� u N (JI N N � K ¢. .G C wa r
a 1{1 -O I -0 GJ1 V tJl N KK -O +M r
o- ii a v- o Sll o G o cn o G � v
•H 11 v r 0 0 0 0 0 G o o s : o
rl } }
» Y KK
m
A
If NIs 4110 40k
a 1 ¢ a¢
N 11 P V1
IMP It
V II wWi O
_
Is
ii a H w m+ z
a 11 N N N + N N N N N N N ak •� MO,+ O
W II ^ .-0. A •- .O N m r V P -G O m
yJ 11 p -p fJl �1 N N m P .� -J C 4. •� m }
91 ¢ m ¢
u O- u- !.n o <7 O
V 11
u r
if w
if «
n « KK
To }
N 11 N ¢ o ¢K
So ¢
4 _ n }
r N ~_ M M M= .p
a n -O -0 Cn V 411 N a rM -p m¢
of
-Q IIO P GP V
11 .-•. m m
V • • ¢ A w
P 11 P O Ill q O O VI O G ¢ +
v
to
n
¢
ri
N n
N
11 N M -• N #
W If P P P N W P N
O 1 •O -O r N fllIf
P 11 VI O O O O I✓1 O } r m¢
y II O` P O O O r 14' m II w V •J O O O O G O O 14CxI
G o G KK ¢
I + w.
} rt}
"• I M MA N M rN.. al. p }
W I O a A
I N+ H -• M M N N N N Cmc w
A II ^ P P G N ra
P II N O 2• -O [] `1 O-0-Wp O m O r+. d 'm1• }
O
• II ri L c O VI o o q w o w O O G VI c:mL w
N ii G o O o o G o c G G G G G c KK
It y
1l
It
}
It ¢
K
it a M +
P 11 N N N M V N N N a V ^ N N T }
II N M N N+ + N•• v N N M+
rV• 11 G •� W N O r�r p- m W m M m P O a GJ W N P m P VI A N �N- P a N m w}
W VI O Cn O W m a .p m J P O P A O VI A -O V W m O tll a O P A a n•
m it O- O O O G P N O P O G O O O A O O O m O N O N A O O p O O G O M. r}
O 11 O O O C O O O O C O O O O O C O O O O O O O O O O O C G O O C• Mx
II } �
City of Fayetteville, Arkansas
Policemen's Pension & Relief Fund
Asset Allocation — Cost Basis
December 31, 1990
DEAN WITTER
Dean Witter
Madision Investment
Acorn Asset Management
TOTAL DEAN WITTER
• LONGER INVESTMENTS, INC
CITY HELD INVESTMENTS
TOTAL FUND
PERCENT OF TOTAL
t1M1CP�OFTLMED
\BEN\POUNV
Cash & Fixed Percent
Equivalent Income Equities Total Of
(10-25%) (15-75%) (20-40%) Total
$543,798
$60,000
$0 <
$803,798;
13%
120,210
950,000
0:
1,070,210:'.
24%
350,002
363,000
301638
1,014,640`
22%
8996
dq%
6296
26%
1414,010
1,373,000
301,638
2,688,648
60%
9% 22% 74%
1059587 494,403 854,349
2% 16% 0%
25,432 350,000 0
2596 49% 26%; 100%
m
•
ELAms M. Iom m C.F.A.
LONGER INVESTMENTS,INC.
REGISTERED INVESTMENT ADVISOR
P. O. BOX 490
18 E. CENTER STREET SUITE 291
FAr vrrzvR.i.E. ARKANSAS 72701
T=EPRONE 6011448.6861
January 10, 1991
City of Fayetteville
Police Pension Fund Committee
Attn: Mr. Scott Linebaugh
113 W. Mountain
Fayetteville, AR 72701
Dear Scott:
Please find enclosed the portfolio reports for the fourth quarter
of 1990 for the City of Fayetteville Police Pension Fund. These
reports include a portfolio appraisal, an income and expense
report, a report of realized gains, purchases and sales,
performance, and an estimated income summary. As instructed,
your management fees will be billed to the Northern Trust
account.We will forward year-end reports of income and realized
gains to you when we receive the final reports from Northern
Trust, if any revisions are necessary.
This has been a tumultuous year in the markets. Through the
first half of the year, the markets were relatively stable,
growth in the economy was sluggish but positive, earnings growth
and interest rates were moderate and the market went from 2700 on
the Dow Jones Industrial Average (DJIA) at the beginning of -the
year -to 3000 by mid -year. In August when -Iraq -invaded Kuwait
the market began a descent that carried the DJIA to the mid -
2300's by early October; a breathtaking decline of 238 in three
months while the broader averages, small cap stocks, financial
stocks and transportation stocks suffered even more pronounced
declines. Since those lows in October, the market has recovered
to the 2630 level as war fears abated on renewed hopes of a
peaceful solution to the Middle East crisis. However, even with
the fourth quarter recovery, the market closed down for the year
for the first time since 1981. The slight decline in the DJIA
masked the more pronounced weakness in the broader averages
(Wilshire 5000, Value Line Index), as you can see in the table
below. Even the Dow.Jones Utility Index, thought to be more
stable in a declining market, suffered a significant loss for the
year.
Mr. Scott Linebaugh
• January 10, 1991
Page Two
PERFORMANCE 1990
Ju y 26 - December 31)
7.22%
5.73%
9.38
8.38
+ 3.38
8.56%
-16.07%
INDEX
S & P 500
S & P 500
(with dividends
DJIA
DJIA
(with dividends
DJ Utility Index
Wilshire 5000
reinvested)
reinvested)
NASDAQ Over the Counter Stocks
FAYETTEVILLE POLICE PENSION FUND
3.138 Equities
+ 4.918 Bonds
+11.808 Bonds (Annualized)
+ 0.308 Total Account
The average annual return for the equity markets over time has
been 108 per year. During the 1980'x, the stock market returns
have averaged approximatel 158 per year. It's not surprising
• then, that with investors uggling war fears, recession, bank
failures and budget gridlock in Washington, the markets underwent
some consolidation and retrenchment this year. We have been
communicating with you throughout the year on the defensive
strategies we were employing to protect capital in a highly
uncertain environment. The returns in your account this year are
not as high, in absolute terms, as we have been accustomed to in
the recent past. However, on a relative performance basis, we
are pleased that we have been able to navigate a difficult course
and preserve capital.
As we face January of this new year, investors are still focusing
on the Middle East deadline of January 15. The economy is in the
midst of a recession that began in the fourth quarter of 1990.
The negative impact of that contraction in economic growth on
fourth quarter earnings won't be certain until the earnings are
reported in late January. The first quarter of this year may be
rocky due to these uncertainties and a retest of the October lows
can be expected. However, looking beyond the first quarter and
assuming we don't get into a prolonged engagement in the Middle
East, there are some rays of hope.
0
Mr. Scott Linebaugh
• January 10, 1991
Page Three
We have enjoyed the longest peacetime expansion in this nation's
history. It is now over eight years old and appears to have
ended in the fourth quarter of 1990. Economic pauses are not all
bad, and if they don't go on too long or become too severe, they
are helpful in that they cure some of the excesses that have
crept into the system and help to alleviate constraints in
capacity utilization and employment so as to moderate the
inflationary pressures in the economy. The Federal Reserve has
responded to the weakness in the economy by moving aggressively
since November to lower short term interest rates. The banks have
followed by cutting the prime lending rate. This should
stimulate the economy out of recession by the second half of 1991
and the economic cycle can begin anew. Earnings typically
recover as the economy recovers. The stock market discounts the
earnings improvement in advance and bottoms approximately six
months before a recession ends. By the time investors know this
recession is over, the stock market will have already recovered.
Many of the companies we own have continued to demonstrate
earnings improvement this year. We have emphasized credit
quality in the stocks we own, choosing only those companies that
have a strong balance sheet with very little debt. These
companies generate sufficient cash flow from operations to cover
their main capital requirements of dividends, debt retirement and
additions to property, plant and equipment. We invest in
companies that have consistent earnings and dividend growth and
have a strong "franchise" or dominant market share in their
. respective industries. As we look to the 901s, one trend that is
indisputable is that American corporations and consumers will go
through a period of unwinding the excessive debt build-up of the
the 1980's. The companies that resisted the leverage craze of
the 80's will reap the benefits in the 901s. Those benefits will
include the ability to expand market share, higher profitability
and returns on equity, greater capacity to spend on research,
development and marketing and the financial flexibility to reward
shareholders with increasing dividends as opposed to paying
interest to creditors. These are what we call "survivor
companies" and they are well represented in your portfolio. The
future for these companies in the 1990's is very bright. As
Eastern European and Asian markets and economies open up to
democracy, capitalism and trade, these "survivors" are positioned
financially and strategically to benefit from emerging growth
opportunities in the next decade.
Your account is still positioned defensively with cash reserves
and utility stocks comprising 15% of the equity account. If some
of the uncertainty regarding the economic outlook dissipates, if
the Middle East conflict is resolved, or if the valuation of
equities improves,relative to the valuation of the bond market,
0
•
0
Mr. Scott Linebaugh
January 10, 1991
Page Four
we have the flexibility to increase your exposure to stocks.
However, until some or all of these events occur, it still pays
to be cautious.
I am enclosing a chart that shows the performance of equities as
an asset relative to inflation over time. Equities are the only
financial asset that allows an investor to participate in a
rising stream of dividend income. By participating in growth,
equity ownership provides protection from the erosion of
purchasing power brought about by inflation. This chart helps me
to see the forest, not the trees, during short term periods of
uncertainty in the market. I thought you might enjoy it since it
is a helpful tool to maintain the proper long term perspective.
Please review your reports and call if you have any questions or
comments. You will be hearing a new voice on the phone when you
call our office. We have hired a new administrative assistant
named Patti Kinder who started with Longer Investments January 7.
Prior to joining Longer Investments, Patti worked as
administrative assistant to the President of Northwest National
Bank in Fayetteville. She will be responsible for settling
trades and will be taking over some of the clerical duties Kim
has been doing. This will free Kim up to help further with the
research work, account management and client contacts. Kim will
be sitting for the first of three exams this June, in pursuit of
the designation of Chartered Financial Analyst. All of these
developments are being done to maintain a high level of service
for our clients. We appreciate your business and wish you a
happy and prosperous new year. Please let us know if we can be
of any additional assistance.
Sincerely,
0010
L _ /
eine M. g C.F.A
President
EML/kmc
Enclosure
9
I
0
Om
Z
�v
az
my
m .i
v0
9 0
iv
z m
W
c
E N
ma
M
Mo v
_no
m m
N m
N
O
0
i
Ul
�
o
0
CP
to
�<
'v
1
1 M
1 Z
J
�o
CD
o
0
O
1
z
CO
:c
M
\
i
n
V
O
Om
Z
�v
az
my
m .i
v0
9 0
iv
z m
W
c
E N
ma
M
Mo v
_no
m m
N m
N
1
1
;
1
1
1
1
\
\
;
1
1
1
1
1
\
\
\
;
\
\
\
\
\
1
•
1
\
\
Om
Z
�v
az
my
m .i
v0
9 0
iv
z m
W
c
E N
ma
M
Mo v
_no
m m
N m
N
December 31, 1990
City of Fayetteville Police Pension Fund
Combined Account
13 W. Mountain
ayetteville, AR 72701
Longer Investments, Incorporated
STATEMENT OF MANAGEMENT FEES
For The Period Ending December 31, 1990
Portfolio Valuation as of 12-31-90
500,000 @ 1.250% per annum
989,227 @ 1.000% per annum
Quarterly Management Fee
•
•
TOTAL DUE AND PAYABLE
$ 1,489,227.08
1,562.50
2,473.07
$ 4,035.57
4,035.57
Pursuant to Section 204-3 of the Investment Advisors Act of 1940,'
Part II of Form ADV is available to all clients of Longer
Investments, Inc. This statement may be obtained by submitting a f.
written request to the company.
•
•
0
Langer Investments, Incorporated
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
Combined Account
December 31, 1990
CORPORATE BONDS
100,000 G. E. Capital Corp.
99.86 99,860.00
Unit
Total
Market
Market
Pct,
Unit
Annual
Cur,
Quantity
Security
Cost
Cost
Price
Value
Assets
Income
Income
Yield
........M .
....................
.......
.........
.......
.........
....
......
.........
.....
COMMON STOCK
200,403.50
202,902.50
13.6
17,86.00 8.6
-----.-.
900
Abbott Labs
43.72
39,352.50
45.00
408500.00
2.7
0.840
756.00
1.9
600
Archer Daniels
23.29
13,973.79
22.75
13,650.00
0.9
0.100
60.00
0.4
Midland
20000
Barold Corp.
7.11
140222.18
6.00
12,000.00
0.8
0.200
400.00
3.3
600
Bristol Myers Squibb
57.92
34,752.00
67.25
40,350.00
2.7
2.400
1,440.00
3.6
10000
Chemical Waste
18.94
18,945.00
21.50
21,500.00
1.4
0.160
160.00
0.7
Management
1,500
Claire's Stores
9.57
14,355.00
9.75
14,625.00
1.0
0.100
150.00
1.0
1,000
Eastman Kodak
42.86
426865.00
41.62
41,625.00
2.8
2.000
2,000.00
4.8
1,200
Emerson Electric
40.07
48,084.00
37.75
45,300.00
3.0
1.260
1,512.00
3.3
1,000
Fluor Corp.
39.00
39,001.14
36.50
36,500.00
2.4
0.240
240.00
0.7
18000
Greiner Engineering
13.07
13,070.00
14.00
140000.00
0.9
0.200
200.00
1.4
1,000
Hershey Foods
35.57
35,570.00
37.50
37,500.00
2.5
0.900
900.00
2.4
700
Ingersoll-Rand
36.35
25,445.00
37.25
26,075.00
1.7
1.320
924.00
3.5
400
Inti Business
108.08
43,231.56
113.00
45,200.00
3.0
4.840
1,936.00
4.3
Machines
700
J.B. Hunt
15.12
10,587.50
17.50
12,250.00
0.8
0.240
168.00
1.4
500
LaidLaw Inc. Class 9
22.44
11,222.50
18.50
9,250.00
0.6
0.280
140.00
1.5
1,500
Luby's Cafeterias
18.13
270198.75
18.00
27,000.00
1.8
0.460
690.00
2.6
800
Minnesota Mining t
74.97
59,972.87
85.75
68,600.00
4.6
2.920
2,336.00
3.4
Mfg.
10500
MoblL Corp.
62.17
93,257.50
58.00
870000.00
5.8
2.900
4,350.00
5.0
1,500
Mylan Labs
17.55
26,320.00
20.75
310125.00
2.1
0.200
300.00
1.0
10600
Pacificorp
19.57
31,312.00
22.37
35,800.00
2.4
1.440
2,304.00
6.4
800
Philip Morris
40.94
32,748.13
51.75
41,400.00
2.8
1.720
1,376.00
3.3
500
Schlumberger, LTD
55.50
27,750.00
$7.87
28,937.50
1.9
1.200
600.00
2.1 - _-
600
Toys -R -Us
28.85
17,308.50
22.50
13,500.00
0.9
0.000
0.00
0.0
1,000
Tyson Foods
26.52
260521.8
31.00
31,000.00
2.1
0.040
40.00
0.1
500
Wataart Stores
29.03
14,514.17
30.25
15,125.00
1.0
0.140
70.00
0.5
750
Warner Lambert
64.13
480101.25
67.50
500625.00
3.4
1.520
11140.00
2.3
800
Waste Management
33.37
26,700.00
35.25
280200.00
1.9
0.360
288.00
1.0
600
Westinghouse Elec
29.94
17,967.00
28.50
17,100.00
1.1
1.400
840.00
4.9
.........
.........
.....
.........
.....
854,348.59
885,737.50
59.2
25,320.00
2.9
CORPORATE BONDS
100,000 G. E. Capital Corp.
99.86 99,860.00
100.34 1000340.00
6.7
8.000 80000.00 8.0
8.000% Due 12-01-92
1000000 Philip Morris
100.54 100,543.50
101.12 101,125.00
6.8
9.250 98250.00 9.1
9.250% Due 12-01-97
Accrued Interest
1,437.50
0.1
.........
.........
.....
......... -----
-
200,403.50
202,902.50
13.6
17,86.00 8.6
1
Longer Investments, Incorporated
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
Combined Account
December 31, 1990
Unit Total Market Market Pct. Unit Annual Our
Quantity
Security
Cost Cost
Price Value
Assets
Income Income
Yield
..........
....................
....... .........
....... .........
.....
...... .........
.....
GOVERNMENT
BONDS
7.805 70336.70
7.8
lMatures 8-27-911
............ 1.11
7.805% Due 11-27-91
100,000
Federal Naos Loan
100.00 100,000.00
102." 102,437.50
6.9
9.150 9,150.00
8.9
Mortgage Corp.
.........
""""'
.....
.........
.....
9.150% Due 08-08-00
940000.00
'---94;692:91
6.3
--7,336.70
7.8--- --
Accrued Interest
.........
30634.58
0.2
_____
TOTAL PORTFOLIO
184546339.17
10494,992.07
100.0
75,275.73
5.0
ww
nnn=nnnn
aaasaaaaa
a-san
1006000.00
106,072.08
7.1
9,150.00
8.9
CASH AND EQUIVALENTS
Money Market 1058587.08 1056587.08 7.1 7.500 7,919.03 7.5
.._...... ......... ..... ......... .....
105,587.08 1050587.08 7.1 7,919.03 7.5
CERTIFICATES OF DEPOSIT
.................... -..
First USA Bank Wilmington, DE 1000000.00
FDIC 1.2-96
100,000.00
100,000.00
6.7
8.300 8,300.00
8.3
____ ------ ------- __
1000000.00
6.7
80300.00
8.3
CERTIFICATE OF DEPOSIT
____ ------ ------- __
• 96,000__Mcllroy_ Bank i Trust
100.00 946000.00
100.00 948000.00
6.3
7.805 70336.70
7.8
lMatures 8-27-911
7.805% Due 11-27-91
Accrued Interest -
- -.
692.91
0.0
.........
""""'
.....
.........
.....
940000.00
'---94;692:91
6.3
--7,336.70
7.8--- --
____.__..
.........
'----
_________
_____
TOTAL PORTFOLIO
184546339.17
10494,992.07
100.0
75,275.73
5.0
nnn=nnnn
aaasaaaaa
a-san
saaaaaaaa
amu
b
•
•
•
0
Longer Investments, Incorporated
PORTFOLIO APPRAISAL
City of Fayetteville Pollee Pension Fund
Stock Account
December 31, 1990
......--- ......... ..... ......... .....
TOTAL PORTFOLIO 939,365.78 970,754.09 100.0 31,696.24 3.3
mamas ems aaammm an
Unit
Total
Market
Market
Pct,
Unit
Annual
Cur,
Quantity
Security
Cost
Cost
Price
Value Assets
Income
Income
Yield
..........
....................
.......
.........
.......
.........
.....
......
.........
.....
COMMON STOCK
............
.
900
Abbott Labs
43.72
39,352.50
45.00
40,500.00
4.2
0.840
756.00
1.9
600
Archer Daniels
23.29
13,973.79
22.75
13,650.00
1.4
0.100
60.00
0.4
Midland
2,000
Baroid Corp.
7.11
14,222.18
6.00
12,000.00
1.2
0.200
400.00
3.3
600
Bristol Myers Squibb
57.92
34,752.00
67.25
40,350.00
4.2
2.400
18440.00
3.6
10000
Chemical Waste
18.94
18,945.00
21.50
21,500.00
2.2
0.160
160.00
0.7
Management
1,500
Claire's Stores
9.57
141355.00
9.75
140625.00
1.5
0.100
150.00
1.0
1,000
Eastman Kodak
42.86
42,565.00
41.62
418625.00
4.3
2.000
2,000.00
4.8
10200
Emerson Electric
40.07
488084.00
37.75
45,300.00
4.7
1.260
1,512.00
3.3
1,000
Fluor Corp.
39.00
39,001.14
36.50
36,500.00
3.8
0.240
240.00
0.7
1,000
Greiner Engineering
13.07
13,070.00
14.00
14,000.00
1.4
0.200
200.00
1.4
1,000
Hershey Foods
35.57
35,570.00
37.50
370500.00
3.9
0.900
900.00
2.4
700
Ingersoll-Rand
36.35
25,445.00
37.25
26,075.00
2.7
1.320
924.00
3.5
400
Intel Business
108.08
43,231.56
113.00
45,200.00
4.7
4.840
18936.00
4.3
Machines
700
J.B. Hurt
15.12
10,587.50
17.50
12,250.00
1.3
0.240
168.00
1.4
500
Laidlaw Inc. Class B
22.44
11,222.50
18.50
9,250.00
1.0
0.280
140.00
1.5
1,500
Lubyls Cafeterias
18.13
27,198.75
18.00
27,000.00
2.8
0.460
690.00
2.6
800
Minnesota Mining i
74.97
59,972.87
85.75
68,600.00
7.1
2.920
2,336.00
3.4
Mfg.
10500
Mobil Corp.
62.17
93,257.50
58.00
87,000.00
9.0
2.900
48350.00
5.0
1,500
Nylan Labe
17.55
26,320.00
20.75
318125.00
3.2
0.200
300.00
1.0
1,600
Paeificorp
19.57
31,312.00
22.37
35,800.00
3.7
1.440
2,304.00
6.4
800
Philip Morris
40.94
32,748.13
51.75
41,400.00
4.3
1.720
1,376.00
3.3
- 500
Schlumberger, LTD-
--55.50
27,750.00
57.87
-28;937:50-
3.0
1.200°--
-600.00-
2.1
600
Toys -R -Us
28.85
17,308.50
22.SO
13,500.00
1.4
0.000
0.00
0.0
1,000
Tyson Foods
26.52
260521.25
31.00
31,000.00
3.2
0.040
40.00
0.1
500
Walmart Stores
29.03
14,514.17
30.25
15,125.00
1.6
0.140
70.00
0.5
750
Warner Lambert
64.13
48,101.25
67.50
50,625.00
5.2
1.520
10140.00
2.3
SOO
Waste Management
33.37
260700.00
35.25
280200.00
2.9
0.360
288.00
1.0
600
Westinghouse Else
29.94
17,967.00
26.50
17,100.00
1.8
1.400
840.00
4.9
854,348.59
885,737.50
91.2
250320.00
2.9
CASH AND EQUIVALENTS
____________________
Money Market
850016.59
85,016.59
8.8
7.500
6,376.24
7.5
.........
.....
.........
.....
85,016.59
85,016.59
8.8
6,376.24
7.5
......--- ......... ..... ......... .....
TOTAL PORTFOLIO 939,365.78 970,754.09 100.0 31,696.24 3.3
mamas ems aaammm an
Quantity
Security
..........
....................
CORPORATE BONDS
...............
19.3
100,000
G. E. Capital Corp.
1,437.50
8.000% Due 12-01-92
1000000
Philip Norris
....._...
9.250% Due 12-01-97
......... .....
Accrued Interest
GOVERNMENT BONDS
................
100,000 Federal Nome Loan
Mortgage Corp.
9.150% Due 08-08-00
Accrued Interest
CASH AND EQUIVALENTS
-...............
Money Market
CERTIFICATES OF DEPOSIT
.......................
Longer Investments, Incorporated
PORTFOLIO APPRAISAL
City of Fayetteville Polioa Pension Furl
Bond Account
December 310 1990
Unit Total Market Market Pct. Unit Annual Cur.
Cost Coat Price Value Assets Incase Income Yield
....... ......... ....... ......... ..... ...... ......... .....
99.86 99,860.00
100.34 100,340.00
19.1
8.000 8,000.00 8.0
100.54 100,543.50
101.12 101,125.00
19.3
9.250 9,250.00 9.1
....... ..
1,437.50
0.3
206570.49
....._.._
....._...
._••.
......... .....
200,403.50
202,902.50
38.7
170250.00 8.6
100.00 100,000.00 102.44 102,437.50 19.5 9.150 9,150.00 8.9
3,634.58 0.7
•"'..... ......... ..... '••...... .....
1006000.00 106,072.08 20.2 90150.00 8.9
20,570.49
20,570.49
3.9
7.500 1,542.79
7.5
.........
.........
.....
....... ..
.....
20,570.49
206570.49
3.9
1,542.79
7.5
_ First USA Bank Wilmington, DE
100,000.00
100,000_.00
19.1
8.300 80300.00
8.3
FDIC 1-2-96
TOTAL
PORTFOLIO
514,973.99
524,237.98
100.0
43,579.49
8.3
.........
.....
evxxa
1008000.00
1006000.00
19.1
80300.00
8.3
CERTIFICATE OF DEPOSIT
----------------•.....
94,000 Mcllroy Bank 9 Trust 100.00
94,000.00
100.00 94,000.00
17.9
7.805 7,336.70
7.8
(Matures 8-27-91)
7.805% Due 11-27-91
Accrued Interest
692.91
0.1
.........
.........
.""
_________
_____
94,000.00
94,692.91
18.1
7,336.70
7.8
0
--""--.
.........
.....
.........
.__..
TOTAL
PORTFOLIO
514,973.99
524,237.98
100.0
43,579.49
8.3
xaaaanao
aaaaxax®
evxxa
exxxxaxxv
axaaa
0
L
•
0
Longer Investments, Incorporated
INTEREST, DIVIDENDS, AND EXPENSES
City of Fayetteville Police Pension Fund
Combined Account
From 01-01-90 Through 12-31-90
COMMON STOCK
08-24-90 Greiner Engineering 90.00
08-27-90 Archer Daniels Midland 37.50
09-04-90 AMP 340.00
09-10-90 Amoco 510.00
09-10-90 Dun and Bradstreet 424.00
09-10-90 Emerson Electric 378.00
09-10-90 Intl Business Machines 605.00
09-10-90 Mobil Corp. 725.00
09-12-90 Minnesota Mining & Mfg. 584.00
09-17-90 Tyson Foods 20.00
10-04-90 Walmart Stores 52.50
10-04-90 Waste Management 45.00
10-10-90 Philip Morris 301.00
10-10-90 Tiffany & Co. 35.00
10-16-90 Fluor Corp. 51.00
10-19-90 Emerson Electric 288.75
10-25-90 General Electric 528.75
11-01-90 Bristol Myers Squibb 318.00
11-15-90 Pacificorp 576.00
11-16-90 Greiner Engineering 90.00
11-16-90 Laidlaw Inc. Class B 30.00
11-27-90 J.B. Hunt 42.00
12-03-90 Archer Daniels Midland 15.00
12-03-90 AMAX Inc. 200.00
12-03-90 Westinghouse Elec 210.00
12-10-90 Emerson Electric 396.00
12-10-90 Intl Business Machines 484.00
12-10-90 Mobil Corp. 1,087.50
12-17-90 Tyson Foods 10.00
12-28-90 Baroid Corp. 100.00
- -------------
8,574.00
CORPORATE BONDS
---------------
12-01-90 Philip Morris -64.24
9.250% Due 12-01-97
12-03-90 G. E. Capital Corp. -266.67
8.000% Due 12-01-92
12-18-90 Philip Morris -321.18
9.250$ Due 12-01-97
............
1
4.
•
•
•
Longer Investments, Incorporated
INTEREST, DIVIDENDS, AND EXPENSES
City of Fayetteville Police Pension Fund
Combined Account
From 01-01-90 Through 12-31-90
GOVERNMENT BONDS
----------------
08-24-90 U. S. Treas. Note -380.43
8.7508 Due 08-15-00
08-24-90 U. S. Treas. Note -380.43
8.750% Due 08-15-00
09-10-90 U. S. Treas. Note 11331.52
8.750% Due 08-15-00
570.66
TREASURY BILLS
--------------
12-13-90 U. S. Treasury Bill 3,746.00
7.660% Due 12-13-90
3,746.00
CASH AND EQUIVALENTS
09-04-90
Money
Market
424.83
09-04-90
Money
Market
21979.90
10-01-90
Money
Market
1,224.92
10-01-90
Money
Market
11773.89
11-01-90
Money
Market
1,123.08
11-01-90
Money
Market
11880.13
12-03-90
Money
Market
966.80
12-03-90
Money
Market
1,693.59
12-31-90
Money
Market
452.88
12-31-90
Money
Market
1,259.71
Mgmt,
31.66
12-03-90
-------------
Cash
Mgmt,
55.47
13,779.73
EXPENSE ACCOUNTS
................
09-04-90
Automated
Cash
Mgmt.
13.49
09-04-90
Automated
Cash
Mgmt.
94.64
10-01-90
Automated
Cash
Mgmt.
39.25
10-01-90
Automated
Cash
Mgmt.
56.83
11-01-90
Automated
Cash
Mgmt.
36.11
11-01-90
Automated
Cash
Mcjmt.
60.45
1i-16-90
Foreign Tax on
Dividends
4.50
11-27-90
Miscellaneous Expense
10.00
12-03-90
Automated
Cash
Mgmt,
31.66
12-03-90
Automated
Cash
Mgmt,
55.47
12-31-90
Automated
Cash
Mgmt,
15.18
12-31-90
Automated
Cash
Mgmt,
42.22
459.80
2
0
0
Longer Investments, Incorporated
INTEREST, DIVIDENDS, AND EXPENSES
City of Fayetteville Police Pension Fund
Combined Account
From 01-01-90 Through 12-31-90
AFTER FEE
PERFORMANCE EXPENSE ACCOUNTS
--------------------------------------
08-08-90
Management Fee
08-28-90
Northern Trust Fee
10-10-90
Management Fee
10-10-90
Management Fee
11-30-90
Northern Trust Fee
NET INCOME
E
3,750.00
300.00
2,428.64
1,380.07
1,375.00
9,233.71
16,324.79
•
E
9)
Lamar Investments, Incorporated
REALIZED CAPITAL GAINS AND LOSSES
City of Fayetteville Police Pension Fund
Combined Account
From 01-01-90 Through 12-31-90
Cost
Date
Quantity
Security
Basis
Proceeds
Gain Or Loss
...........................................................................
07-31-90
500
Toys -R -Us
14,423.75
150379.48
955.73
08-03-90
500
Archer Daniels Midland
12,535.00
12,214.59
-320.41
08-03-90
11000
Amoco
539570.00
590428.01
50858.01
08-03-90
19000
Lowe's
34,820.00
27,054.09
-7,765.91
08-13-90
10200
Reebok Intl,
15,834.00
15,665.47
-168.53
08-13-90
200
Tiffany 8 Co.
9,100.00
7,669.74
-1,430.26
08.15-90
250
American Now Products
11,209.40
12,214.59
10005.19
08-15-90
350
Philip Morris
11,327.30
16,468.70
5,141.40
08-15-90
900
Primerica Corp.
19,820.93
26,936.10
78115.17
08-16-90
1,075
Nestle
62,588.00
63,156.25
568.25
08-16-90
1,000
Primerica Corp.
22,023.25
29,429.01
7,405.76
08-21-90
10000
AMP
44,945.00
39,928.66
-5,016.34
08-21-90
1,000
Luby's Cafeterias
19,070.00
19,129.36
59.36
08-27-90
700
Amoco
39,074.00
37,837.23
-1,236.77
08-30-90
10000
American Home Products
44,837.60
"0428.51
-409.09
08-30-90
300
Fluor Corp.
13,337.31
106687.14
-2,650.17
08-30-90
300
Philip Morris
9,709.11
13,237.05
3,527.94
09-04-90
150
Fluor Corp.
6,668.65
50294.82
-1,375.83
09-04-90
500
Laidlaw Inc. Class B
11,222.50
8,725.00
-2,497.50
09-04-90
1,000
Tyson Foods
26,521.25
28,305.00
1,783.75
09-04-90
500
Waste Management
16s812.50
18,901.86
2,069.36
09-05-90
500
Abbott Labs
18,660.00
20,026.83
1,366.83
D9-05-90
400
Archer Daniels Midland
9,315.86
90644.67
328.81
09-05-90
300
Bristol Myers Squibb
17,376.00
18,561.88
1,185.88
09-05-90
500
Toys -R -Us
14,423.75
12,187.09
-2,236.66
09-10-90
200,000
U. S. Trees. Note
196,109.37
199,531.25
3,421.88
8.750% Due OB -75-00
09-27-90
125
General Electric
6,006.89
6,674.77
667.88
-- -- 09-27-90
-1,000
General Electric
48,055.11
53,273.22
5,218.11
10-03-90
500
Walmart Stores
14,514.17
14,214.52
-299.65
10-05-90
2DO
Philip Morris
7,741.50
9,344.68
1,603.18
10-05-90
300
Philip Morris
111612.24
14,026.03
2,413.79
10-05.90
400
Westinghouse Elec
11,978.00
116849.60
-128.40
10-09-90
450
Archer Daniels Midland
10,480.34
10,745.64
265.30
10-19-90
-5
IBM Oct. 110 Calls
0.00
1,168.70
1,168.70
10-22-90
500
Inti Business Machines
54,039."
54,213.19
175.75
10-30-90
60
ESCO Electronics
288.75
152.49
-136.26
11-05-90
300
Minnesota Mining i Mfg.
21,215.62
24,186.69
20971.06
11-05-90
300
Philip Morris
12,280.55
14,588.51
2,307.96
11-06-90
300
Philip Morris
12,280.55
140699.50
2,418.95
11-07-90
800
Dun and Bradstreet
35,547.00
30,742.97
-4,804.03
11-12-90
350
Fluor Corp.
13,650.40
130261.05
-389.35
11-15-90
500
Walmart Stores
140514.17
14,437.01
-77.16
11-16-90
500
Tiffany i Co.
22,750.00
17,811.90
-4,938.10
11-21-90
10
OEX Dec. 300 Puts
6,314.51
6,267.41
. -47.10
Z
•
Larger Investments, incorporated
REALIZED CAPITAL WINS AND LOSSES
City of Fayetteville Police Pension Fund
Combined Account
From 01-01-90 Through 12-31-90
Date Quantity Security
11-26-90
300
Greiner Engineering
11-27-90
-5
Varner Lambert Dec. 65
..........
.......................
Calls
11-28-90
-4
IBM Dec. 110 Calls
11.30.90
20000
Tremont Corp.
12-21-90
500
Grainer Engineering
12-26-90
10000
AMAX Inc.
12-26-90
1,000
Lowe's
12-26-90
1,000
Reebok Int8l,
TOTAL GAINS
TOTAL LOSSES
Cost
2,399.29
50.08
Basis
Proceeds
Gain Or Loss
..........
.......................
277.27
3,921.00
3,674.86
-246.14
10548.50
10513.38
-35.12
2,349.21
2,399.29
50.08
3,292.82
2,879.90
-412.92
6,53S.00
6,812.27
277.27
25,350.00
21,749.27
-3,600.75
19,522.50
23,874.20
4,351.70
10,195.00
12,374.58
2,179.58
....67,880.63
-40.220.42
...............
1,131,317.81
1,158,978.01
27,660.20
as=aaaaa
asaaaaaaaa manaaaaaaaaa
• • • • • • . • • • • • • • . • • • •l • o
$12
�
8"B� y nm
ro<me =4a-sans=siaaisN$=z_aaao=V»as»ssa
x as a $'s a $ _
e =
S 1 S v n
o $
.. C .. L 8 88 8 x8x 88 8 'a $
m_ -___-_-.________________________g_-
» 's s '8s 's 's s 'a '$
" a '
e -
d N e M�
CL88 $ 88 8 x8x 88 8 8 8
8 x $0 8 a$ a
a$ a is s e s
______________
9 s
88 $ 8
a s x s $ s a is s s'$
" a n
9 Lsww8 8 88 8 'xax 88 a s a
I»
• & 5-9
$=erasiesss.nxs,s.''a.g
2t :t s assn it $a'saoa$$aa'sas$a$aaa's$$8$$a$
R
•
•
•
m
t
0 0
+ o G G V C V S
O O O O O O •
• m •
• O •
C •
W V O I a O
VV 1NV Ny y
N N N N V Go : N:
• z T
:
m
•
z • v
00000 0 : � <fp� x • v i
: o n n
g w m r
+G Om O c i �; o•, +JO
O •
V d d O) R S • T p i m•
O oOoo
v � m
pn 0
W N O W O) O m • ~ m N 0
O P
o +o v � • R m�
8 +
m n
4VI
�Vy W V p V� d S S �• T y 6
P A O N m �O S• N JC4
SSSS SS : .y <�% • me .
S SS SS SS • y m s• • +C:
: m n
Fawgi Pi� SS : Nm°' :
goso� gig. A
P pW. O�.Opa+�• O S • w
�Wp
•
O
�
�ppa�p
�p�
d O:
O�O�p
O
G
O
O�
C
:
O
O
O
O
O
O
p
0
0
p
O
N+
O
V •
W
N
1•
�
4
+
O
C
•
•
•
O O O O O O •
• m •
• O •
C •
W V O I a O
VV 1NV Ny y
N N N N V Go : N:
• z T
:
m
•
z • v
00000 0 : � <fp� x • v i
: o n n
g w m r
+G Om O c i �; o•, +JO
O •
V d d O) R S • T p i m•
O oOoo
v � m
pn 0
W N O W O) O m • ~ m N 0
O P
o +o v � • R m�
8 +
m n
4VI
�Vy W V p V� d S S �• T y 6
P A O N m �O S• N JC4
SSSS SS : .y <�% • me .
S SS SS SS • y m s• • +C:
: m n
Fawgi Pi� SS : Nm°' :
goso� gig. A
P pW. O�.Opa+�• O S • w
•
Ll
:
O
N+ + 0 0 0 0 O x•
p m •
Oi A A O O O O 5 • p•
1 :
+ A N O � ON• . O.pp p OpH� O n:
S+ V a M •O J 5
55555 58 -. •
55555 88: N:
L T_
_ GSpRRwN ��: ��•
m
SSSSS 8864
S S S S S
890 m + 0
p ��•• O M
m T
9NS3S 88 y�i 8
N N V V S 88 m~
O �
0 8 5 5 5 8 8 i'
m
N
880 01
�a`dvPwR 88: ".
v�
m
r
O
m
b
Y•
T
ppT
A
l0
�
1S
i
O
A
J
n
�
q<
_
M
w
�
:
O
A
O
a,
t
b
:
O
N+ + 0 0 0 0 O x•
p m •
Oi A A O O O O 5 • p•
1 :
+ A N O � ON• . O.pp p OpH� O n:
S+ V a M •O J 5
55555 58 -. •
55555 88: N:
L T_
_ GSpRRwN ��: ��•
m
SSSSS 8864
S S S S S
890 m + 0
p ��•• O M
m T
9NS3S 88 y�i 8
N N V V S 88 m~
O �
0 8 5 5 5 8 8 i'
m
N
880 01
�a`dvPwR 88: ".
A
m
r
O
m
Y•
T
ppT
A
l0
�
1S
i
N
A
J
n
m
q<
_
M
w
r
y
A
O
t
b
G
r
�
N
O
O
O
m
ti
~
N
y
5
n
V� 0■ V V V I
y, wig w
• p.pp , O
sagas
O•O� •+•p� O.pp �•pp •+•pp �O�•� SP�OO � ■H_
• N O i 0 0 0 0 0 0 O p$ q .
pe , I yyy
0 0 0 0
W i O W y II W• W W i
O i
88988 O i
mp ,
i C
i
W+ w V O w pV
O .wi V�• N �y I• •O I N•
w A Y1 N P
Iy : T •
o OI A 0 0 0+ O
V Vy VV MT O i
N W O W P+ •O S • ,
m
SS 88888 d
z
y • w � Ifi r
' Ok . m + 0 0 0 0 O a Ong
+i
CC qr m
Oi t A O O O S O • A I � A O J
Y V 00t m
O O W v W O+ n O • n � O>
r�r 9 y
Odp. N OVVC .W�pp N O O • � � �5 yj
• •O N O N P •O S• N� p
,
i T
�Rwtis SS �8
,
O O O S S 8 0 I y C TT5 , S
SSSSS SS•NT
i O N
, m I ■
1
,
,
+s's$gg a+s9 sg
:SSSS SSI 7
SISSSS Sao 06
OyI•��
P S V •AO + S • •
•
V
•
0
•
66
S ll
S1 4 Oil"
] 7 + n w
As
» w s s »
e v
R°»
y� �1y�1 �1yu��11 ..pp �1yy
yP1 O . co NA V P S A P V V N W' P l•1 O V+ V1 N W •WO S N A w W O N 9 w y
P d A N P� + u' p��+ N N + O� .p N W� V' VO O ppp P N N � O• N � � 3 p
N
.O • N O pp O N1 N pp O N0 d N1 0 88 •P pp 0 pp pp VV p
W N+ V W d P P+ N W+ .p W W A N+ •O V P N A N d •O W+ v
4
W N V N d y O11 P .D O .D 1N�y P P V 1 N�u N W O W N A N+ W .O •��O11 + O 1\11
• P d N N "be
P W P W • T
. xa9xa`�xxsexxN�'sYa+exxiaiexP WxaYxigieie�%xaixN.
: o 0
• 41 N W N
s�ie"�xx►ixx��ia�iiexx'�YxiYxxsi�xxxxix .
1y 1y y1 pn .(N
��.11 ppp .�pp .�pp d q po 1Ny pVp VNV qp oPo �Ny dm O po pNm� 1.Np p Op w
! x M M M x x X x x K it M x M if M K M M N 5 RR ON x • '»J l
O O O O O O O O O 0
pdp pp 11yy 11�y ��11 ++�� II��1 ..pp ..pp ..pp yy11 _ pp pp pp _ s
O N 0 0 0 0 N N O O O O O N N O N O O O V N O O N O 0 0• w
O + N+ N W N+ W N W W W W O V M+ N N A r P N N+ P+ A
_ ; po ypcypl1 cc O re eley.eoo �epp`r.eppeouo ee+o 0 000 0
P• N P N P O N� N� r P N d N N N N+ N_ C V d �
RR pp 11yy w 1y 1yy1 p �1 yV1 .p N P pV+.1
]O N
T
O O O O O N O O O O+ 0 0++ 0 0 0 0 0 0 0+ 0 0+ O+
O • � W .1�Op�/ p y p W .w1 + gpNq � MM pQ {pryd..�� vq 1W�1 �ppyy�� o •(pp�� � �pQ :
�' 0000++or�ololNNy+oN000�ooQ000Neolloyylypo�� O�
x • �11�y1'�Qp y�y11 j��j��11S j�$•O�.1 P WWQQ +� (�1 N�1�1 +�j�•$• V.p W • ^ S
i!le�M�i��ii�x�if%i���ii�xA%Mi[ie PPxx • Vb <w
1N � O O P O+ 0 0 0 0 O O
: :
xxxx & six aixK x19V1,"i19A11 �.
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o e o 0 0 0 0 0 0 0 0
lou �N N 8� ��R�� ���R�R�885t�R�� •
'J8N�.oN�E..iIL'V��.1v9'NVbo"1`Joo1E.1.0iRv : i :
0 0 0 0 o e o 0 0 0 0 o e o 0 0 0 0 0 0 0 0 0 o e o o
R
�1 �y( V pp�� v p; pp��, y&1 1y +�� V•.
V: yl +• N V M�� N 8 N 1 N N 9 .O � N I Z Z W� N
•
if
S
A
s
M
dN
R
P +
V
V N
a
P
Y
V
66
S ll
S1 4 Oil"
] 7 + n w
As
» w s s »
e v
R°»
y� �1y�1 �1yu��11 ..pp �1yy
yP1 O . co NA V P S A P V V N W' P l•1 O V+ V1 N W •WO S N A w W O N 9 w y
P d A N P� + u' p��+ N N + O� .p N W� V' VO O ppp P N N � O• N � � 3 p
N
.O • N O pp O N1 N pp O N0 d N1 0 88 •P pp 0 pp pp VV p
W N+ V W d P P+ N W+ .p W W A N+ •O V P N A N d •O W+ v
4
W N V N d y O11 P .D O .D 1N�y P P V 1 N�u N W O W N A N+ W .O •��O11 + O 1\11
• P d N N "be
P W P W • T
. xa9xa`�xxsexxN�'sYa+exxiaiexP WxaYxigieie�%xaixN.
: o 0
• 41 N W N
s�ie"�xx►ixx��ia�iiexx'�YxiYxxsi�xxxxix .
1y 1y y1 pn .(N
��.11 ppp .�pp .�pp d q po 1Ny pVp VNV qp oPo �Ny dm O po pNm� 1.Np p Op w
! x M M M x x X x x K it M x M if M K M M N 5 RR ON x • '»J l
O O O O O O O O O 0
pdp pp 11yy 11�y ��11 ++�� II��1 ..pp ..pp ..pp yy11 _ pp pp pp _ s
O N 0 0 0 0 N N O O O O O N N O N O O O V N O O N O 0 0• w
O + N+ N W N+ W N W W W W O V M+ N N A r P N N+ P+ A
_ ; po ypcypl1 cc O re eley.eoo �epp`r.eppeouo ee+o 0 000 0
P• N P N P O N� N� r P N d N N N N+ N_ C V d �
RR pp 11yy w 1y 1yy1 p �1 yV1 .p N P pV+.1
]O N
T
O O O O O N O O O O+ 0 0++ 0 0 0 0 0 0 0+ 0 0+ O+
O • � W .1�Op�/ p y p W .w1 + gpNq � MM pQ {pryd..�� vq 1W�1 �ppyy�� o •(pp�� � �pQ :
�' 0000++or�ololNNy+oN000�ooQ000Neolloyylypo�� O�
x • �11�y1'�Qp y�y11 j��j��11S j�$•O�.1 P WWQQ +� (�1 N�1�1 +�j�•$• V.p W • ^ S
i!le�M�i��ii�x�if%i���ii�xA%Mi[ie PPxx • Vb <w
1N � O O P O+ 0 0 0 0 O O
: :
xxxx & six aixK x19V1,"i19A11 �.
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o e o 0 0 0 0 0 0 0 0
lou �N N 8� ��R�� ���R�R�885t�R�� •
'J8N�.oN�E..iIL'V��.1v9'NVbo"1`Joo1E.1.0iRv : i :
0 0 0 0 o e o 0 0 0 0 o e o 0 0 0 0 0 0 0 0 0 o e o o
R
�1 �y( V pp�� v p; pp��, y&1 1y +�� V•.
V: yl +• N V M�� N 8 N 1 N N 9 .O � N I Z Z W� N
•
•
0
�'AN,77gF 1,... FN
Longer Investments, Incorporated MI R_IPY "~ j
PORTFOLIO APPRAISAL 171'Y
City of Fayetteville Police Pension Fund c
Stock Account
December 31, 1990 �U<
Unit Total Market Market Pct. Unit Annual Cur.
Quantity Security Cost Cost Price Value Assets Income Income Yield
----- _---- _------ _____.... ____ ________________ _______ _________ _____ ______ ____----- _____
COMMON STOCK
900
Abbott Labs
43.72
39,352.50
45.00
40,500.00
4.2
0.840
756.00
1.9
600
Archer Daniels
23.29
13,973.79
22.75
13,650.00
1.4
0.100
60.00
0.4
Midland
2,000
Baroid Corp.
7.11
14,222.18
6.00
12,000.00
1.2
0.200
400.00
3.3
600
Bristol Myers Squibb
57.92
34,752.00
67.25
40,350.00
4.2
2.400
1,440.00
3.6
1,000
Chemical Waste
18.94
18,945.00
21.50
210500.00
2.2
0.160
160.00
0.7
Management
1,500
Claire's Stores
9.57
14,355.00
9.75
14,625.00
1.5
0.100
150.00
1.0
18000
Eastman Kodak
42.86
42,865.00
41.62
41,625.00
4.3
2.000
2,000.00
4.8
11200
Emerson Electric
40.07
480084.00
37.75
45,300.00
4.7
1.320
1,584.00
3.5
11000
Fluor Corp.
39.00
39,001.14
36.50
36,500.00
3.8
0.320
320.00
0.9
1,000
Greiner Engineering
13.07
13,070.00
14.00
14,000.00
1.4
0.200
200.00
1.4
1,000
Hershey Foods
35.57
35,570.00
37.50
37,500.00
3.9
0.900
900.00
2.4
700
Ingersoll-Rand
36.35
25,445.00
37.25
26,075.00
2.7
1.320
924.00
3.5
400
Intl Business
108.08
43,231.56
113.00
45,200.00
4.7
4.840
1,936.00
4.3
Machines
700
J.B. Hunt
15.12
100587.50
17.50
12,250.00
1.3
0.240
168.00
1.4
500
Laidlaw Inc. Class 8
22.44
11,222.50
18.50
9,250.00
1.0
0.280
140.00
1.5
1,500
Luby's Cafeterias
18.13
27,198.75
18.00
27,000.00
2.8
0.460
690.00
2.6
800
Minnesota Mining 8
74.97
59,972.87
85.75
680600.00
7.1
3.120
2,496.00
3.6
Mfg.
10500
Mobil Corp.
62.17
93,257.50
58.00
87,000.00
9.0
2.900
46350.00
5.0
1,500
Mylan Labs
17.55
26,320.00
20.75
319125.00
3.2
0.200
300.00
1.0
1,600
Pacificorp
19.57
31,312.00
22.37
350800.00
3.7
1.440
2,304.00
6.4
800
Philip Morris
40.94
32,748.13
51.75
41,400.00
4.3
1.720
1,376.00
3.3
500
Schlumberger, LTD
55.50
27,750.00
57.87
28,937.50
3.0
1.200
600.00
2.1
600
Toys -R -Us
28.85
17,308.50
22.50
13,500.00
1.4
0.000
0.00
0.0
1,000
Tyson Foods
26.52
26,521.25
31.00
31,000.00
3.2
0.040
40.00
0.1
500
Walmart Stores
29.03
14,514.17
30.25
15,125.00
1.6
0.140
70.00
0.5
750
Warner Lambert
64.13
48,101.25
67.50
50,625.00
5.2
1.760
1,320.00
2.6
800
Waste Management
33.37
26,700.00
35.25
28,200.00
2.9
0.360
288.00
1.0
600
Westinghouse Elec
29.94
17,967.00
28.50
17,100.00
1.8
1.400
840.00
4.9
.....------------
854,348.59
885,737.50
-----
91.2
.........
25,812.00
-----
2.9
CASH AND EQUIVALENTS
_________--- ________
Money Market 854381.59 85,381.59 8.8 7.200 61147.47 7.2
--------- ......... ..... --------- -----
85,381.59 85,381.59 8.8 6,147.47 7.2
--------- ......... ..... --------- -- -_
TOTAL PORTFOLIO 9390730.18 971,119.09 100.0 31,959.47 3.3
•
•
GOVERNMENT BONDS
--- _----- _______
100,000 Federal Home Loan 100.00 100,000.00 102.44 102,437.50 19.5 9.150 9,150.00 8.9
Mortgage Corp.
9.150% Due 08-08-00
Accrued Interest 3,634.58 0.7
--------- ......... ..... ---------
100,000.00 106,072.08 20.2 9,150.00 8.9
CASH AND EQUIVALENTS
Money Market 200570.49 200570.49 3.9 7.200 1,481.08 7.2
200570.49 20,570.49 3.9 1,481.08 7.2
CERTIFICATE OF DEPOSIT
----- _______..........
94,000 Mellroy Bank & Trust 100.00 948000.00 100.00 94,000.00 17.9 7.805 71336.70 7.8
(Matures 8-27-91)
7.805% Due 11-27-91
Accrued Interest 692.91 0.1
......... "'------ __.__ --"'----
94,000.00 94,692.91 18.1 7,336.70 7.8
CERTIFICATE OF DEPOSIT (MONTHLY PINT.)
--------------------------------------
100,000 First USA Bank 100.00 1001000.00 100.00 100,000.00 19.1 8.300 81300.00 8.3
Wilmington, DE 8.3%
1-2-96
8.300% Due 01-02-96
TOTAL PORTFOLIO
--------- --------- -'-" -------_- "---
100,000.00 1000000.00 19.1 8,300.00 8.3
Longer Investments, Incorporated
514,973.99
524,237.98 100.0 ✓
431517.78
8.3 ✓
PORTFOLIO APPRAISAL
City of
Fayetteville PolicePgnsion Fund
Bond Account .✓
December 31, 1990
Unit
Total Market Market
Pct.
Unit
Annual
Cur.
Quantity
__________
Security
............. _......
Cost
_______
Cost Price Value Assets
_________ _______ _________ _____
Income
______
Income
_________
Yield
_____
CORPORATE BONDS
...............
1001000
G. E. Capital Corp.
99.86
99,860.00 100.34 100,340.00
19.1
8.000
88000.00
8.0
8.000% Due 12-01-92
100,000
Philip Morris
100.54
100,543.50 101.12 101,125.00
19.3
9.250
90250.00
9.1
9.250% Due 12-01-97
Accrued Interest
1,437.50
------'..
0.3
.........
200,403.50 202,902.50
.'---
38.7
--" "---
17,250.00
-____
8.6
GOVERNMENT BONDS
--- _----- _______
100,000 Federal Home Loan 100.00 100,000.00 102.44 102,437.50 19.5 9.150 9,150.00 8.9
Mortgage Corp.
9.150% Due 08-08-00
Accrued Interest 3,634.58 0.7
--------- ......... ..... ---------
100,000.00 106,072.08 20.2 9,150.00 8.9
CASH AND EQUIVALENTS
Money Market 200570.49 200570.49 3.9 7.200 1,481.08 7.2
200570.49 20,570.49 3.9 1,481.08 7.2
CERTIFICATE OF DEPOSIT
----- _______..........
94,000 Mellroy Bank & Trust 100.00 948000.00 100.00 94,000.00 17.9 7.805 71336.70 7.8
(Matures 8-27-91)
7.805% Due 11-27-91
Accrued Interest 692.91 0.1
......... "'------ __.__ --"'----
94,000.00 94,692.91 18.1 7,336.70 7.8
CERTIFICATE OF DEPOSIT (MONTHLY PINT.)
--------------------------------------
100,000 First USA Bank 100.00 1001000.00 100.00 100,000.00 19.1 8.300 81300.00 8.3
Wilmington, DE 8.3%
1-2-96
8.300% Due 01-02-96
TOTAL PORTFOLIO
--------- --------- -'-" -------_- "---
100,000.00 1000000.00 19.1 8,300.00 8.3
514,973.99
524,237.98 100.0 ✓
431517.78
8.3 ✓
•
CI
0
Longer Investments, Incorporated
PORTFOLIO APPRAISAL
City of Fayetteville Police Pens' ^ Fund
Combined Account
December 31, 1990
COMMON STOCK
900 Abbott Labs
600 Archer Daniels
Midland
26000 Baroid Corp.
600 Bristol Myers Squibb
11000 Chemical Waste
Management
1,500 Claire's Stores
18000 Eastman Kodak
1,200 Emerson Electric
1,000 Fluor Corp.
18000 Greiner Engineering
1,000 Hershey Foods
700 Ingersoll-Rand
400 Intl Business
Machines
700 J.B. Hunt
500 Laidlaw Inc. Class B
1,500 Luby's Cafeterias
800 Minnesota Mining &
Mfg.
1,500 Mobil Corp.
1,500 Mylan Labs
1,600 Pacificorp
800 Philip Morris
500 Schlumberger, LTD
600 Toys -R -Us
1,000 Tyson Foods
500 Walmart Stores
750 Warner Lambert
800 Waste Management
600 Westinghouse Elec
CORPORATE BONDS
____________
100,000 G. E. Capital Corp.
8.000% Due 12-01-92
100,000 Philip Morris
9.250% Due 12-01-97
Accrued Interest
43.72
39,352.50
Unit
Total
Market
Market
Pct.
Unit
Annual
Cur.
Quantity
-- --- - ----
Security
-------------- ------
Cost
-------
Cost
--- ------
Price
-------
Value
---------
Assets
-----
Income
------
Income
---------
Yield
-----
COMMON STOCK
900 Abbott Labs
600 Archer Daniels
Midland
26000 Baroid Corp.
600 Bristol Myers Squibb
11000 Chemical Waste
Management
1,500 Claire's Stores
18000 Eastman Kodak
1,200 Emerson Electric
1,000 Fluor Corp.
18000 Greiner Engineering
1,000 Hershey Foods
700 Ingersoll-Rand
400 Intl Business
Machines
700 J.B. Hunt
500 Laidlaw Inc. Class B
1,500 Luby's Cafeterias
800 Minnesota Mining &
Mfg.
1,500 Mobil Corp.
1,500 Mylan Labs
1,600 Pacificorp
800 Philip Morris
500 Schlumberger, LTD
600 Toys -R -Us
1,000 Tyson Foods
500 Walmart Stores
750 Warner Lambert
800 Waste Management
600 Westinghouse Elec
CORPORATE BONDS
____________
100,000 G. E. Capital Corp.
8.000% Due 12-01-92
100,000 Philip Morris
9.250% Due 12-01-97
Accrued Interest
43.72
39,352.50
45.00
40,500.00
2.7
0.640
756.00
1.9
23.29
13,973.79
22.75
13,650.00
0.9
0.100
60.00
0.4
7.11
14,222.18
6.00
12,000.00
0.8
0.200
400.00
3.3
57.92
34,752.00
67.25
40,350.00
2.7
2.400
11440.00
3.6
18.94
188945.00
21.50
21,500.00
1.4
0.160
160.00
0.7
9.57
14,355.00
9.75
14,625.00
1.0
0.100
150.00
1.0
42.86
420865.00
41.62
41,625.00
2.8
2.000
2,000.00
4.8
40.07
48,084.00
37.75
45,300.00
3.0
1.320
1,584.00
3.5
39.00
39,001.14
36.50
36,500.00
2.4
0.320
320.00
0.9
13.07
13,070.00
14.00
14,000.00
0.9
0.200
200.00
1.4
35.57
35,570.00
37.50
378500.00
2.5
0.900
900.00
2.4
36.35
25,445.00
37.25
26,075.00
1.7
1.320
924.00
3.5
108.08
43,231.56
113.00
45,200.00
3.0
4.840
1,936.00
4.3
15.12
10,587.50
17.50
12,250.00
0.8
0.240
168.00
1.4
22.44
11,222.50
18.50
9,250.00
0.6
0.280
140.00
1.5
18.13
27,198.75
18.00
27,000.00
1.8
0.460
690.00
2.6
74.97
59,972.87
85.75
68,600.00
4.6
3.120
21496.00
3.6
62.17
93,257.50
58.00
87,000.00
5.8
2.900
41350.00
5.0
17.55
26,320.00
20.75
31,125.00
2.1
0.200
300.00
1.0
19.57
31,312.00
22.37
35,800.00
2.4
1.440
2,304.00
6.4
40.94
32,748.13
51.75
41,400.00
2.8
1.720
1,376.00
3.3
55.50
27,750.00
57.87
28,937.50
1.9
1.200
600.00
2.1
28.85
179308.50
22.50
13,500.00
0.9
0.000
0.00
0.0
26.52
26,521.25
31.00
31,000.00
2.1
0.040
40.00
0.1
29.03
14,514.17
30.25
15,125.00
1.0
0.140
70.00
0.5
64.13
48,101.25
67.50
50,625.00
3.4
1.760
1,320.00
2.6
33.37
26,700.00
35.25
28,200.00
1.9
0.360
288.00
1.0
29.94
17,967.00
28.50
17,100.00
1.1
1.400
840.00
4.9
---------
854,348.59
.........
885,737.50
.....
59.2
---------
25,812.00
-----
2.9
99.86
99,860.00
100.34
100,340.00
100.54
100,543.50
101.12
101,125.00
1,437.50
--------- .........
200,403.50 202,902.50
1
6.7 8.000 8,000.00 8.0
6.8 9.250 9,250.00 9.1
0.1
----- -------M. -----
13.6 17,250.00 8.6
•
CI
0
A;t1)I Fi (� \ial)f 11:12,14 111
94,000 Mcllroy Bank 8 Trust 100.00 94,000.00 100.00 94,000.00 6.3 7.805 70336.70 7.8
(Matures 8-27-91)
7.805% Due 11-27-91
Accrued Interest 692.91 0.0
--------- •-•_..... ..... ....
94,000.00 94,692.91 6.3 7,336.70 7.8
CERTIFICATE OF DEPOSIT (MONTHLY PYMT.)
100,000 First USA Bank 100.00 1000000.00 100.00 1001000.00 6.7 8.300 8,300.00 8.3
Wilmington, DE 8.3%
1-2-96
8.300% Due 01-02-96
......... _________ _____ _________ _____
1008000.00 100,000.00 6.7 8,300.00 8.3
TOTAL PORTFOLIO
1,454,704.17 1,495,357.07 100.0
--------- --------- -----
v
2
_________
_____
Longer Investments, Incorporated
75,477.25
5.0
---------
---------
-----
-----
PORTFOLIO APPRAISAL
City of
Fayetteville Police Pension Fund
Combined Account
December 31, 1990
Unit
Total Market
Market
Pct.
Unit
Annual
Cur.
Quantity
........ M.
Security
____________________
Cost
_______
Cost Price
_________ _______
Value Assets
_________ _____
Income
---- __
Income
_________
Yield
GOVERNMENT
BONDS
---- _______
100,000
--- __
Federal Home Loan
100.00
1000000.00 102.44
102,437.50
6.9
9.150
98150.00
8.9
Mortgage Corp.
9.150% Due 08-08-00
Accrued Interest
3,634.58
0.2
1008000.00
1060072.08
7.1
91150.00
8.9
CASH AND EQUIVALENTS
....................
Money Market
105,952.08
1050952.08
7.1
7.200
7,628.55
7.2
.........
105v952.08
.........
105,952.08
.....
7.1
---------
7,628.55
-----
7.2
A;t1)I Fi (� \ial)f 11:12,14 111
94,000 Mcllroy Bank 8 Trust 100.00 94,000.00 100.00 94,000.00 6.3 7.805 70336.70 7.8
(Matures 8-27-91)
7.805% Due 11-27-91
Accrued Interest 692.91 0.0
--------- •-•_..... ..... ....
94,000.00 94,692.91 6.3 7,336.70 7.8
CERTIFICATE OF DEPOSIT (MONTHLY PYMT.)
100,000 First USA Bank 100.00 1000000.00 100.00 1001000.00 6.7 8.300 8,300.00 8.3
Wilmington, DE 8.3%
1-2-96
8.300% Due 01-02-96
......... _________ _____ _________ _____
1008000.00 100,000.00 6.7 8,300.00 8.3
TOTAL PORTFOLIO
1,454,704.17 1,495,357.07 100.0
--------- --------- -----
v
2
_________
_____
75,477.25
5.0
---------
---------
-----
-----
0
•
ry
O
P
d
P
P
P
P
O
M
0
O
L
C
0
O
M
C
O
V
d
M
M
M
M
M
yO
H
d
C
A
A
Q)
_
.
S
N
O
Y
0
w
6
U
p��
Q
C
2
d
O
O
�_
Yu
O
O
0
u
«
«
u
u
M
O
>
«
O
N
i 0
u
0
C
W
«
P
r
p
T
P
L
P
LL
d
0
w
O
O
�
C0
C
T
A
.
O
Q
U
A
•
P:
O CI M O N M
ry
O
P
P
P
P
P
P
A
M
O
•�
C
O
M
O
V
d
M
M
M
M
M
M
A
A
Q)
P
O
S
N
•
P
p�,
p��
d
O
O
O
O
O
O
0
u
«
«
u
u
u
O
i 0
u
0
0
0
0
P
P
P
P
P
P
P
P_p
0
O
N
C0
C
A
.
O
Q
A
A
A
Q7
P
O
X 0
0
O
O
O
r
>
O
P
EPO
A
m
O
P
O
•+
O
�
O
Q
O
M
��
O
•O
P
p6
^
p
N
o
P
�
A
A
EO
t0
6
2
y
�
3
O
r
O
ppp�
>
11
••
O
p
op
��}}
!N��
u
0
0
O
N
O
P
P
A
W
2ppp�
P
W
NO
U
O
P
P
Npp
N
y
.Yp1
N
i
0
0
P
W
Z8
P
P
�
EO
G
Ifl
Vl
GG
N
N
B
O
O
P
CI
CI
P
P
N
r
O
r
f�
•O
EO
{Pp
{Ap
Y
O
O
P
f0
OJ
P
P
0
0
LM
GE
N
O
N
�
L
O
V
0
DD
f
0
N
LL'
P
P
pp
A
^
d
•O
P
O
N
Q
y
•-•
C>
O
P
N
O
C1
M
O
V
O
•O
N
m
6
6
�
C
8
,
d
•9
d
N
A
A
M
EO
O
L
O
0
L
O
M
O
P
V1
d
N
N
WC
L
_
d
I
M
A
M
(O
Ed
O
C>
O
P
d
O
•O
N
M
P:
O CI M O N M
ry
O
P
P
P
P
P
P
A
M
M
M
M
M
M
M
M
M
A
A
Q)
P
O
S
N
•
P
d
O
O
O
O
O
O
0
u
«
«
u
u
u
O
i 0
u
0
0
0
0
P
P
P
P
P
P
P
P_p
0
O
N
C0
C
A
.
O
Q
A
A
A
Q7
P
O
X 0
0
O
O
O
r
ry
P
A
M
M
N
M
A
•
P
d
M
0
N
p
O
O
u
«
d
O
N
P_p
0
O
N
C0
C
A
.
O
Q
C]
�
P
d
M
M
o
d
co
O
�
N
d
L
O
Y
'O
d
O
N
✓
P
p
p
p
�O
d
L
C,
G
C
P
P
G
C
G
O
t
e
>
o
P
e0
P
p
v
p
r
6
In
law
^
p
M
aM0
A
A
m
m
6
S
p[
�
3
O
F
O
d
W
S
O
W
M
P
V1
P
d
>
113
O
V
W
W
O
O
P
P
m
m
m
P
W
0
3
W
�
m
u
O
P
IN
n
N
�I
N
>
pp
.1�lpp1
.
.pp
Ipn
O
O
P
CO
m
P
P
N
v
O
It-
!2
8
v
M
n
0
N
r
5
O
O
•O
•O
C�`0
A
.P{
Ua
O
O
O
O
O'
O
a
�
ry
•
r
C
M
�
f`
�
`MO
n
6r
N
OC
pp
J
d
P
O
N
Yy
..pp
O
O
O
d
N
m
a
p
n
a
u
m
�
Q
�
S
C
�
L
8
AA
..pp
d
•�
d
N
A
A
N
M
m
d
1
L
O
V
O
P
Y1
�
•O
N
r
N
Y
L
L
a
d
O
U
aA
O
L>
O
ail
O
O
P
IR
O
N
N
C
O
V
P
N
P
O
O
O
O
O
O
O
N
u
u
s
O
p
O
G
P
P
P
P
M
M.
M
M
M
B
mM
p
IN
•�
O
r
Y
O
O
O
O
O
O
V
M
Q61
X
0
G
GM
0
pM
pY
pV
E
P
P
P
P
P
1
m
•O
�O
m
O
O
r
N
N
M
M
M
M
M
A
A
A
EO
P
O
X
0
0
O
O
O
�-•
�
P
d
M
M
d
O
�
O
O
Y
'O
d
O
N
✓
P
d
p
�O
d
A
O
t
P
•
Longer Investments, Incorporated
REALIZED CAPITAL GAINS AND LOSSES
City of Fayetteville Police Pension Fund
Combined Account
From 01-01-90 Through 12-31-90
Date
Quantity
Security
........
07-31-90
..........
500
.......................
Toys -R -Us
08-03-90
500
Archer Daniels Midland
08-03-90
1,000
Amoco
08-03-90
1,000
Lowe's
08-13-90
10200
Reebok Intl.
08-13-90
200
Tiffany 8 Co.
08-15-90
250
American Home Products
08-15-90
350
Philip Morris
08-15-90
900
Primerica Corp.
08-16-90
18075
Nestle
08-16-90
1,000
Primerica Corp.
08-21-90
1,000
AMP
08.21-90
1,000
Luby's Cafeterias
08-27-90
700
Amoco
08-30-90
1,000
American Home Products
08-30-90
300
Fluor Corp.
08-30-90
300
Philip Morris
09-04-90
150
Fluor Corp.
09-04-90
500
Laidlaw Inc. Class B
09-04-90
1,000
Tyson Foods
09-04-90
500
Waste Management
09-05-90
500
Abbott Labs
09-05-90
400
Archer Daniels Midland
09-05-90
300
Bristol Myers Squibb
09-05-90
500
Toys -R -Us
09-10-90
200,000
U. S. Tress. Note
196,109.37
199,531.25
8.750% Due 08-15-00
09-27-90
125
General Electric
09-27-90
1,000
General Electric
10-03-90
500
Walamrt Stores
10-05-90
200
Philip Morris
10-05-90
300
Philip Morris
10-05-90
400
Westinghouse Elec
10-09-90
450
Archer Daniels Midland
10-19-90
-5
IBM Oct. 110 Calls
10-22-90
500
Inti Business Machines
10-30-90
60
ESCO Electronics
11-05-90
300
Minnesota Mining 8 Mfg.
11 -OS -90
300
Philip Morris
11-06-90
300
Philip Morris
11-07-90
800
Dun and Bradstreet
11-12-90
350
Fluor Corp.
11-15-90
500
Walmart Stores
11-16-90
500
Tiffany 8 Co.
11-21-90
10
OEX Dec. 300 Puts
1
Cost
6,674.77
667.88
Basis
Proceeds
Gain Or Loss
..........
14,423.75
..........
15,379.48
.............
955.73
12,535.00
12,214.59
-320.41
53,570.00
59,428.01
5,858.01
34,820.00
27,054.09
-7,765.91
15,834.00
15,665.47
-168.53
9,100.00
7,669.74
-1,430.26
11,209.40
12,214.59
1,005.19
11,327.30
16,468.70
5,141.40
19,820.93
26,936.10
7,115.17
62,588.00
638156.25
568.25
22,023.25
29,429.01
7,405.76
44,945.00
39,928.66
-5,016.34
19,070.00
19,129.36
59.36
39,074.00
37,837.23
-1,236.77
44,837.60
44,428.51
-409.09
13,337.31
10,687.14
-2,650.17
9,709.11
13,237.05
3,527.94
6,668.65
5,294.82
-1,373.83
11,222.50
8,725.00
-2,497.50
26,521.25
28,305.00
1,783.75
16,812.50
18,901.86
2,089.36
180660.00
20,026.83
1,366.83
9,315.86
9,644.67
328.81
17,376.00
18,561.88
1,185.88
14,423.75
12,187.09
-2,236.66
196,109.37
199,531.25
3,421.88
6,006.89
6,674.77
667.88
48,055.11
53,273.22
5,218.11
14,514.17
14,214.52
-299.65
7,741.50
9,344.68
1,603.18
11,612.24
14,026.03
2,413.79
11,978.00
11,849.60
-128.40
10,480.34
10,745.64
265.30
0.00
1,168.70
1,168.70
54,039.44
54,213.19
173.75
288.75
152.49
-136.26
21,215.62
24,186.69
2,971.06
12,280.55
14,588.51
2,307.96
12,280.55
14,699.50
2,418.95
35,547.00
30,742.97
-4,804.03
13,650.40
13,261.05
-389.35
14,514.17
14,437.01
-77.16
22,750.00
17,811.90
-41938.10
6,314.51
61267.41
-47.10
•
rl
L
Longer Investments, Incorporated
REALIZED CAPITAL GAINS AND LOSSES
City of Fayettevi LLe Police Pension Fund
Combined Account
From 01-01-90. Through 12-31-90
Cost
Date Quantity
Security
Basis
Proceeds
Gain Or Loss
11-26-90
300
Greiner Engineering
3,921.00
3,674.86
-246.14
11-27-90
-5
Warner Lambert Dec. 65
1,548.50
10513.38
-35.12
Cells
11-28-90
-4
IBM Dec. 110 Calls
2,349.21
2,399.29
50.08
11-30-90
21000
Tremont Corp.
3,292.82
2,879.90
-412.92
12-21-90
500
Greiner Engineering
6,535.00
6,812.27
277.27
12-26-90
18000
AMAX Inc.
25,350.00
21,749.27
-3,600.73
12-26-90
1,000
Lowe's
19,522.50
23,874.20
4,351.70
12-26-90
1,000
Reebok Intl.
10,195.00
12,374.58
2,179.58
TOTAL GAINS
67,880.63
TOTAL LOSSES
-401220.42
/
1,131,317.81
1,158,978.01___27,660.20
V
•
•
0
ele)s04)L�cV4�l:Z�)�I�b`.
12-01-90 Philip
Longer Investments, Incorporated
-64.24
9.250%
INTEREST, DIVIDENDS, AND EXPENSES
12-03-90 G. E.
City of Fayetteville Police Pension Fund
-266.67
8.000%
Combined Account
12-18-90 Philip
From 01-01-90 Through 12-31-90
-321.18
COMMON STOCK
Due 12-01-97
08-24-90
Greiner Enginee Ing
90.00
-------652
08-27-90
Archer Daniels idland
37.50
09-04-90
AMP
340.00
09-10-90
Amoco
510.00
09-10-90
Dun and Bradstreet
424.00
09-10-90
Emerson Electric
378.00
09-10-90
Int'1 Business Machines
605.00
09-10-90
Mobil Corp.
725.00
09-12-90
Minnesota Mining & Mfg.
584.00
09-17-90
Tyson Foods
20.00
10-04-90
Walmart Stores
52.50
10-04-90
Waste Management
45.00
10-10-90
Philip Morris
301.00
10-10-90
Tiffany & Co.
35.00
10-16-90
Fluor Corp.
51.00
10-19-90
Emerson Electric
288.75
10-25-90
General Electric
528.75
11-01-90
Bristol Myers Squibb
318.00
11-15-90
Pacificorp
576.00
11-16-90
Greiner Engineering
90.00
11-16-90
Laidlaw Inc. Class B
30.00
11-27-90
J.B. Hunt
42.00
12-03-90
Archer Daniels Midland
15.00
12-03-90
AMAX Inc.
200.00
12-03-90
Westinghouse Elec
210.00
12-10-90
Emerson Electric
396.00
12-10-90
Intl Business Machines
484.00
12-10-90
Mobil Corp.
1,087.50
12-12-90
Minnesota Mining & Mfg.
365.00
12-17-90
Tyson Foods
10.00
12-28-90
Baroid Corp.
100.00
8,939.00
ele)s04)L�cV4�l:Z�)�I�b`.
12-01-90 Philip
Morris
-64.24
9.250%
Due 12-01-97
12-03-90 G. E.
Capital Corp.
-266.67
8.000%
Due 12-01-92
12-18-90 Philip
Morris
-321.18
9.250%
Due 12-01-97
-------652
09
•
Longer Investments, Incorporated
INTEREST, DIVIDENDS, AND EXPENSES
City of Fayetteville Police Pension Fund
Combined Account
From 01-01-90 Through 12-31-90
s /C JV. .w a. a
08-24-90 U. S. Treas. Note -380.43
8.750% Due 08-15-00
08-24-90 U. S. Treas. Note -380.43
8.750% Due 08-15-00
09-10-90 U. S. Treas, Note 1,331.52
8.750% Due 08-15-00
TREASURY BILLS
12-13-90
U. S. Treasury
Bill
3,746.00
7.660% Due 12-13-90
3,746.00
CASH AND
EQUIVALENTS
....................
09-04-90
Money Market
424.83
09-04-90
Money Market
2,979.90
10-01-90
Money Market
11224.92
10-01-90
Money Market
1,773.89
11-01-90
Money Market
1,123.08
11-01-90
Money Market
1,880.13
• 12-03-90
Money Market
966.80
12-03-90
Money Market
1,693.59
12-31-90
Money Market
452.88
12-31-90
Money Market
11259.71
.............
EXPENSE ACCOUNTS
.............
09-04-90
Automated Cash
Mgmt,
13.49
09-04-90
Automated Cash
Mgmt,
94.64
10-01-90
Automated Cash
Mgmt.
39.25
10-01-90
Automated Cash
Mgmt.
56.83
11-01-90
Automated Cash
Mgmt.
36.11
11-01-90
Automated Cash
Mcpt,
60.45
11-16-90
Foreign Tax on
Dividends
4.50
11-27-90
Miscellaneous
Expense
10.00
12-03-90
Automated Cash
Mgmt,
31.66
12-03-90
Automated Cash
Mgmt,
55.47
12-31-90
Automated Cash
Mgmt,
15.18
12-31-90
Automated Cash
Mgmt.
42.22
2
0
�Wllf
•
•
•
Longer Investments, Incorporated
INTEREST, DIVIDENDS, AND EXPENSES
City of Fayetteville Police Pension Fund
Combined Account
From 01-01-90 Through 12-31-90
08-08-90
Management Fee
31750.00
08-28-90
Northern Trust Fee
300.00
10-10-90
Management Fee
21428.64
10-10-90
Management Fee
11380.07
11-30-90
Northern Trust Fee
1,375.00
9,233.71
-----
NET INCOME 16,689.79
•
Date Quantity
------...........
PURCHASES
Longer Investments, Incorporated
PURCHASE AND SALE REPORT
City of Fayetteville Police Pension Fund
Stock Account
From 10-25-90 To 12-31-90
J
Unit
Security Price Amount
-----------------------------..........
12-21-90
11000
900
Abbott Labs
43.72
39,352.50
11-27-90
1,000
800
Chemical Waste Management
18.94
18,945.00
12-06-90
1,500
60
Claire's Stores
9.57
14,355.00
152.49
11-27-90
11000
350
Eastman Kodak
42.86
42,865.00
12-03-90
1,000
300
Hershey Foods
35.57
35,570.00
12-18-90
700
Ingersoll-Rand
36.35
25,445.00
10-31-90
11000
500
Lowe's
19.44
91722.50
11-27-90
500
Lowe's
19.60
91800.00
12-12-90
1,500
300
Luby's Cafeterias
18.13
27,198.75
12-03-90
300
Minnesota Mining & Mfg.
82.04
24,613.50
11-01-90
1,000
Mylan Labs
16.57
16,570.00
11-30-90
500
Mylan Labs
19.50
91750.00
10-31-90
21000
500
Schlumberger, LTD
55.50
27,750.00
10-29-90
21000
500
Tremont Corp.
1.65
31292.82
10-31-90
500
Warner Lambert
62.82
31,410.00
11-27-90
250
Warner Lambert
66.76
16,691.25
11-14-90
10
OEX Dec. 300 Puts
6.31
61314.51
359,645.83
SS
12-26
11-07
10-30
11-12
11-26
12-21
12-26
11-05
11-05
11-06
12-26
11-16
11-30
11-15
11-21
0
-90
11000
AMAX Inc.
21.75
21,749.27
-90
800
Dun and Bradstreet
38.43
30,742.97
-90
60
ESCO Electronics
2.54
152.49
-90
350
Fluor Corp.
37.89
13,261.05
-90
300
Greiner Engineering
12.25
31674.86
-90
500
Greiner Engineering
13.62
61812.27
-90
11000
Lowe's
23.87
23,874.20
-90
300
Minnesota Mining & Mfg.
80.62
24,186.69
-90
300
Philip Morris
48.63
14,588.51
-90
300
Philip Morris
49.00
14,699.50
-90
11000
Reebok Int'1.
12.37
12,374.58
-90
500
Tiffany & Co.
35.62
17,811.90
-90
21000
Tremont Corp.
1.44
21879.90
-90
500
Walmart Stores
28.87
14,437.01
-90
10
OEX Dec. 300 Puts
6.27
6,267.41
207,512.61
•
Date Quantity
-------- ...........
SHORT SALES
11-15-90
11-13-90
SHORT COVERS
11-28-90
11-27-90
ADJUST CAPITAL
..............
10-29-90
•
•
Longer Investments, Incorporated
PURCHASE AND SALE REPORT
City of Fayetteville Police Pension Fund
Stock Account
From 10-25-90 To 12-31-90
Security
4 IBM Dec. 110 Calls
5 Warner Lambert Dec. 65 Calls
4 IBM Dec. 110 Calls
5 Warner Lambert Dec. 65 Calls
2,000 Baroid Corp.
2
unit
Price Amount
-- --------- ----------
6.00 21399.29
3.03 1,513.38
3,912.67
5.87 21349.21
3.10 11548.50
------
3,897.71
1.65 31292.82
-------------
3,292.82
Longer Investments, Incorporated
PURCHASE AND SALE REPORT
City of Fayetteville Police Pension Fund
Bond Account
• From 10-25-90 To 12-31-90
Unit
Date Quantity Security Price Amount
----------------------------------------------------- ---------.............
PURCHASES
12-03-90
100,000
G. E. Capital Corp.
99.86
99,860.00
8.000% Due 12-01-92
12-01-90
50,000
Philip Morris
99.83
49,915.00
9.250% Due 12-01-97
12-18-90
50,000
Philip Morris
101.26
50,628.50
9.250% Due 12-01-97
11-27-90
94,000
McIlroy Bank & Trust (Matures
100.00
94,000.00
8-27-91)
7.805% Due 11-27-91
12-29-90
100,000
First USA Bank Wilmington, DE
100.00
100,000.00
8.3% 1-2-96
8.300% Due 01-02-96
394,403
50
SALES
12-13-90
200,000
U. S. Treasury Bill
100.00
200,000.00
7.660% Due 12-13-90
•
200,000
00
•
•
•
I
Longer Investments, Incorporated
TOTAL 61531.97
Year to Date
07-26-90
to
12-31-90
6,531.97
0.00
-------------
6,531.97
COMMISSIONS
BY PORTFOLIO
Month to Date
07-26-90
to
Name
12-31-90
--------------------------------
City of
Fayetteville
Police
.............
61531.97
Pension
Fund
City of
Fayetteville
Police
0.00
Pension
Fund
TOTAL 61531.97
Year to Date
07-26-90
to
12-31-90
6,531.97
0.00
-------------
6,531.97