HomeMy WebLinkAbout2008-01-17 Minutes (2)Police Pension and Relief Fund Board of Trustees
Agenda
January 17, 2008
A meeting of the Fayetteville Policemen's Pension and Relief Fund Board will be held on
January 17, 2008 at 1:30 PM in Room 326 of the City Administration Building located at 113
West Mountain Street, Fayetteville, Arkansas.
1. Roll Call
2. Approval of the Minutes
• Approval of the October 18, 2007 Meeting Minutes
3. Approval of the Pension List
• December, 2007 Pension List
• January, February and March 2008 Pension Lists
4. New Business
• 2008 Pension Board Elections
• 2008 Board Meeting Schedule - Informational
• 2008 Parking Permits — Informational
• Alliant Insurance Services — Informational
5. Longer Investments
• Investment Report
• Client Survey —Informational
Board Members
Mayor Coody
Sondra E. Smith
Eldon Roberts
Jerry Friend
Tim Helder
Melvin Stanley
Frank Johnson
Chairman
Treasure
Secretary/
Retired Position 1
Retired Position 2
Retired Position 3
Retired Position 4
Retired Position 5
ayler „le
Policemen's Pension and Relief Fund
Meeting Minutes
October 18, 2007
A meeting of the Fayetteville Policemen's Pension and Relief
October 18, 2007 in Room 326 of the City Administration Buildi
Mayor Coody called the meeting to order.
Present: Mayor Coody, Melvin Stanley, Tim
Williams, Amber Wood, Chief Greg Tabor, Mai
Kim Cooper of Longer Investments.
Absent: Frank Johnson and Jerry
Approval of the Minutes:
Approval of the July 19,
Tim Helder moved0i
call the motion carri
Approval'h�the September;
Mayor Coo
Sondra Smith: Y64
now going to his wife
7
Policemen's Pension and Relief Fund
Board of Trustees Meeting Minutes
October 18, 2007
Page 1 of 7
at 1:30 PM on
Roberts, gdi%ark Smith, Kit
counting, Ela1i onlzer and
Eldon XRoberts seconded the motion. Upon roll
and Jerry Friend were absent.
November 2007 Pension Lists
the pension lists?
passed away so the only change is that his pension amount is
Tim Helder moved to approve the Pension Lists. Eldon Roberts seconded the motion.
Upon roll call the motion carried 5-0. Frank Johnson and Jerry Friend were absent.
Old Business:
There was n Old Business.
New Business:
David Preston — Deceased
A copy of David Preston's obituary was given to the Board
Supplemental Funds Distribution (Turnback)
Sondra Smith: That is just an informational item. TWO',
received from the State on the turn back fees. Ther1' a sl
calculates that shows what you received in 2004, 2r, 2006
in the turnback.
F<�Ay,�i4i
Eldon Roberts: That is the insurance turnback?
Sondra Smith: Yes.
Eldon Roberts: Right, that's the part that cdj` e!
Sondra Smith: Yes. T "4sheet shows'"'.
the difference in the arr�Aunts.e s a letter f
they were holding .{;1 No',
% of �%ht turnback
released that 10% so theS ztnot4' zng any b
�,•;,,,��+` 'u
what we will e[yyj�eft Vear. (•�}}
:•..ttStVX•hti,...I .I •F, h:ii1. '4 F41 ��.4�.F�+�•XGA{
Mayor
218 —
: Any
: There are
Sondra Smith:
Policemen's Pension and Relief Fund
Board of Trustees Meeting Minutes
October 18, 2007
Page 2 of 7
&',Copy of 1, 1,11 formation that we
badsheet tf. 'T4'., in Accounting
tnd 2007 so you cue the decline
V. •fii
amounts;, or 2004, 2005, 2006 and 2007 an
1 PRB that explains that at one point in time
di~ was going into a fund. This year they
hus this year might be a little bit more than
of tki�checks that we received and how it was calculated.
and asked me to put this on the agenda so we could discuss it.
Mayor Coody: Is this the same situation as the Fire Board?
Sondra Smith: Yes. It's Act 218. Marsha it is my understanding that we can only pay
insurance premiums?
Marsha Farthing: There's one other type of thing that we can pay. I will have to look it up but
it has something to do with long term care policies.
Policemen's Pension and Relief Fund
Board of Trustees Meeting Minutes
October 18, 2007
Page 3 of 7
Sondra Smith: The Fire Pension thought it was like a health savings account. I told them it was
not. They wanted me to get clarification on that.
Marsha Farthing: They can have a health savings account with their carrier. It could go to a
health saving account through the carrier but our checks go to the carrier.
Sondra Smith: That is what I thought. It would be up to the carrier to set up the health savings
account. They had been told we would be set up the health savings account here at the City and I
did not think that was the situation.
Mayor Coody: Eldon do you have any questions on this?
Eldon Roberts: No, I talked to Sondra about it on the phone'tther day and I pretty much
understand where the City stands on it. I agree with her and I dffi fii � � � City's stand on it is it's
too complicated of an accounting procedure right now the w4" lits set'bt�'ff;, hoever proposed this
» >��'�.`�� ..
to the legislative session needs to take it back and gets}:Yrlile more ed because it's to
complex for the cities to ever try to keep up with. '':::
Sondra Smith: Just so the rest of the board will at th'�'ension Protect'$ct is if we
decided to do this at the Ci the first $3 000 of insur£``'"'c`',': r ,43h'rtw>''
City a1a,•r;,�.,�p�l�•liurr3s could be pre' taxed but it is
only the first $3,000 of your insurance premiums. The c60hp is if the Fire Pension and Police
Pension decided to do this and we have U' proximately hungx4pembers on both plans, then we
could be paying out a hundred differei�'f'�%�nsurance check`RA f>hundred different insurance
companies. It's not like our insurance heir'$'a�#4J1ty to wheif Y'e a just one insurance
rr, r.,.,t .,. r gg pay
company. The City is concerned about the=>'abilif}'> u'`:".; f ou :nr et to tell us that you have
Y, ; Y ., g
changed your insurance and we pay your old`` surAi" e ai ix f is ' our new insurance doesn't get
paid and you have a claingii h is liable? ' e you liable r not telling us or are we liable for
not getting the check t ie corr e, ti�isurance cori
& any? That a concern of the City.
Kit Williams: And the
Eldon Ro
doing the
Sondra
your tax
Mayor Coody:
Eldon Roberts:
I agree
Longer Investments:
take mord gaff at a time when we can't add any staff.
g° 4with a muff de of insurance companies. Whereas in the City
't:•:.:r
is Q,,. one insurance company you're dealing with for every
F
sfks�
fou Eldon that what they should have done is let you take it off
basis instead of the City having to govern it.
so understanding on this.
just the way it is. There is no need to go there the way this is written.
Monthly Investment Report
Policemen's Pension and Relief Fund
Board of Trustees Meeting Minutes
October 18, 2007
Page 4 of 7
Elaine Longer: Page one is the September 30th portfolio appraisal. The quarter actually closed
up from June to September. You closed at about 55% equities when you look at your equities
plus international stocks which are 7.1%. You are just above the 55%.
Equity Overage
Eldon Roberts moved to approve the equity overage. Melvin Stanley seconded the motion.
Upon roll call the motion passed 5-0. Frank Johnson and Jerry Friend were absent.
On page four the ending portfolio value was $10938 million. The incq.�me on your bonds, which
are government agency bonds, is 5.4%, that's on your total fixed, jortfolio. Your total
income yield which is dividends plus interest that's earned on a ; F"''fir .olio regardless of what the
h r
stock market does is 3.5% income yield. kx=>^ vt 18
. x£P�:,.,
Page five is an update through yesterdays close and y,> still right a d the 55% equity
exposure. Not much else has happened except that th�0 , ocks are up othe'. y = , onth to date in
the month of October. A distribution went out out $12,000 so the c „.value as of
yesterday is still at about $10.926 million.
X, k fx
Page nine is your realized gains year to date which are ju�1:V4gains on stocks we sold, that gain
�n x
is $306,000. Income which is dividends rest is $170;f .
Page 10 is the break down of the bond p°taV
maturity is only 4.6 years and that compares
yield is about 120 basis points higher than a
securities that mature
securities mature in tr
defensively. At tim6
curve. The Fed is lo,
have talked aboutAhe
far as a ne
giving up al
today to yet
being brave
n you are
a one year,
nincome to
conservative at this
new
0
years or ie'
yield to !>;�,;;Wty is 5.4%. The average
::. a five .,year treasury. So your income
able ; i✓ar treasury. In the category of
�,11
�e still he about 34% of the fixed income
I think at this point it is better to be structured
years or less.`y,
%r.
to extend matriit s and go out to the long end of the yield
rt§41F, .,interest rat ut the dollar has gone to new lows. We
at 77 today. That goes back to the 1960's as
lex. The'' euro is at a new high today and gold is up. The
N
iI£ang out to five years or ten years, the yields are not all that
at a`P: vhyear yield at 4 '/2% and we are still buying government
ture :and a three year maturity over 5%. At this point we are not
e. Gold is going to a new high; crude oil is up another $1.50
Those things that look inflationary on my screen keep me from
the yield curve to five and ten years. We are being very
Page 11 is the top equity weightings. General Electric is the largest position, Johnson & Johnson,
Microsoft, Kraft Foods, Inc. and Teva Pharmaceuticals.
Page 12 you will see the sectors that we are overweight and underweight. We have been
preaching about the weak consumer and the problems with the housing market for a little over a
year and now you see what has happened in the past three months. It is affecting consumer
spending. The consumer really has not come to grips with higher energy prices for heating this
winter and the higher energy prices. Crude oil has moved about 15% higher from where the
price at the pump is. The reason you are not seeing it at the pump yet is because the refiners
Policemen's Pension and Relief Fund
Board of Trustees Meeting Minutes
October 18, 2007
Page 5 of 7
have enough supply that they have not hit the gas stations with the increase price but that is
coming. We are still very light the consumer. The industrial stocks are knocking the cover off
the ball as far as earnings reports especially the multi -national corporations that are tapped into
the international growth. They are capitalizing on the growth in the emerging economies in
China and that is offsetting the weakness in the US economy. The whole story this year has been
to be in the big multi -national blue chip companies that are positioned internally. That is the
only place that you are seeing real consistent earnings growth and margin improvements. They
benefit from the dollar declining because they become more competitive internationally as the
dollar declines. We are still overweight energy, healthcare and technology. We are equal weight
in capital goods. We are underweight financial and utilities.
Kit Williams: I thought utilities were generally a safe thing
Elaine Longer: The electric utilities, the dividend yield,
from growth. They don't have enough of an income ,?%`
compared to fixed income rates at this point. That'sf0b cal
which reduces the current yield on the stocks. They; don't
growth stock.
Page 13 we have contributions and distributions year
$120.,000 and distributions have been abQ���A$810,000.
Page 14 you have your returns.. Your stocl,�W
bonds are up 4.3% so the total is up 7.7%,%
time period. The S&P with compounded diVi
11.9%, the DOW 11.5%. ;h
:14 ller compan.
0 fk.g V. h ,, ,Ar
are only up 2.3% year V ;date. j�;{. 4 t1small caps
companies are doill9Q.%x n near. t:
Through the
date gains qj
In thel
give"us
UP
have dividends.
ust 110011'%h, enough to go away
Ea be ca ' EHR..an income security
they have hi -nice appreciation
ve enough gro''"; `;Vo rae called a
Contributions have been about
1}1.4% year'T§,rjaRe. International up 7.1%,
nen{•4:, y
r,.11.4%r�`S&P is up 7.7% during that
4: "r' r
is >zp:}. NASDAQ is about the same
Rus4 44 `2000 which is the small cap index
really lagging with what the big international
2.4% month to date that puts your year to
8% year to date.
r Policy" #'addressx b#Aly change I would recommend last time which was to
bit of wig '......00m at e 55% level.
To give you alate on w 4�'pire the market is, the whole sub prime thing started to surface in
June. The Bear`' s fun were the first ones you really heard about in the newspaper. To
give you an idea ose funds were doing, these mortgage brokers, that came up in the last
couple of years that w. riginating mortgages they are not tied to a bank, they are independent
mortgage brokers. Tl ky are not regulated by the Feds. They lay outside of the regulation of the
FDIC and the controller of the currency. They just basically originate mortgages and get a fee
for that. Then they take the mortgage and they off load it to whatever their up stream financial
institutional is that they are selling these things to. That financial institutional puts them together
into a pool and then divides the pool into different risk categories depending on the risk rating of.
each individual mortgage and then off loads that to financial institutions all over the world. So
hedge funds own these, banking institutions, pension funds and international funds own these
sub prime mortgage pools. They are not priced every day like a stock is or like a corporate bond
or government agency bond. They are priced based on model pricing and until there is a big
Policemen's Pension and Relief Fund
Board of Trustees Meeting Minutes
October 18, 2007
Page 6 of 7
bunch of them that come to market the model prices get by the scrutiny of the regulators because
that is all they have to go on. When something moves to market and there is a fire sale, the
documentation of that market price, then everybody else who is holding this stuff has to mark
down to market. So you have a whole world out there with a vested interest of not marking to
market.
You have all kinds of stuff going on. Bear Stearns put up $3 billion into these funds to try and
hold off so that they could pay investors who wanted to get out without having to throw all these
things onto the market. That lasted about three weeks. Then you have had many more sort of
come up all over the world. One of the biggest. European Banks had, o shut several funds to
investors they couldn't get out. That started a run on the banks finita, The Central Banks
rr'nk�t
around the world have had to come in and supply liquidi , rf aI.cause this has such huge
repercussions; it froze up a lot of the financial markets as far a �', V cial paper and things like
that. That is why you have seen the European CentralB''`alc, Ban1{uF }Japan and the Fed so
active since August.
Kit Williams: Is there still a risk?
Elaine Longer: It's still not functioning normally:k 4 gf00 , r4�the"{ weekend weAgot news that
Treasury Secretary Paulson has been meeting with official _.�m Citibank,Bank of America and
r j V
JP Morgan to try and put together this su�,g fund that woul r n billion dollars, it would be non
governmental money, but it would pr' wj,,! �.n ome liquidity=k{'r some of these structured
investment vehicles to at least have a market i 1bave to sells ing. It kind of back fired
on them and this week we have seen Citi Q- roup t£h �t the s that they had reached in
August. Bank of America reported earnings this "ere a disappointment its down
5%. So a number of the }baiactually taki4g out the s of August even though this plan
14;i
was suppose to help support thei?Ve are not out,• of the woods yet but I think we will probably
have,another quarterf'oi;,discouirate and Fed ize cut before January although they may pass
�` r}}' r0. onl do 25 I sis points in September and they did 50 so
in October. I really thou ey � y
if they pass in Octclber I rea.`j `4}'4'rt:"i.wtig especially with where the currency is.
n c h ? ,n nvLy. 5. S
y,1X % ��tkbrj'i', •
))ik�i}}:'!��,S�tyt�•,t:��` VVk,�r�Rh'.:k.
Your ear-gngv s report`Y,`sfl'SFz'��2'�•���r
ust fine with the exception of consumer stocks, housing
and f,p{{p�als. At this poi}tyhe earneem to be on track with the exception of those places
where tli obvious w ther's still quite a bit of strength with International growth.
Kit Williams. N.
rn. used to c "' the other economies with us and now we are hoping they carry
US. }{hhr<. Avg: {
Elaine Longer: Thatllyirue, China will contribute more to world growth this year than any other
economy and that is the first time that China has actually moved to the top of the heap.
Elaine Longer: You're in at 55% and very well diversified. A lot of times I go in with 1.5% of
equity exposure and I might take it to 2% or 2.5%. Our biggest position is GE which is 4% of
equity exposure. We do everything incrementally. Nothing is really over exposed, nothing can
sink the ship. We are broadly diversified across sectors and individual stocks.
Policemen's Pension and Relief Fund
Board of Trustees Meeting Minutes
October 18, 2007
Page 7 of 7
Quarterly Report
A copy of Longer Investments Quarterly report was given to the Board.
Loneer Investment Letter
A copy of the letter from Longer Investments dated August 16, 2007 was given to the Board.
Mei
POLICE PENSION FUND
December 2007 6800.9800 6800.9800
Month 12 ReguiarMo 5335-00 533505 Check
EMP# NAME Benefit YTD Reg Benefit Supp! YTD Suppl. Fed Tax St Tax Net
154 ALLEN, CHARLES
2509.36
30,112.32
60.00
600.00
220.00
66.89
2,272.47
130 BAYLES, DON
1541.17
18,494.04
50,00
600.00
1,591.17
107 BLACK, JOE P
1092.85
13,114.20
50.00
600.00
100.00
20.00
1,022.85
147 BRADLEY, GERALD
4679.70
56,156.40
50.00
600.00
975.00
300.00
3,454.70
139 BRADLEY, RANDALL
2776.86
33,322.32
50.00
600.00
382.00
100.00
2,344.86
167 BROWN, JOHN
4234.96
50,819.52
50.00
600.00
600.00
200.00
3,484.96
157 CARROLL,RONALD L
2044.70
24,536.40
50.00
600.00
250.00
105.00
1,739.70
151 COLE, RUSTON
2976.45
35,717.40
50.00
600.00
600.00
200.00
2,226.45
109 COOPER, ADRIAN
619.83
7,437.96
50.00
600.00
669.83
198 DENNIS, ANNA MARY
1336.78
14,704.58
50.00
550.00
1,386.78
108 DENNIS, WARREN, Deceased 1/19107
0.00
1,336.78
0.00
50.00
0.00
0.00
160 DUGGER,GARY
3071.59
36,859.08
50.00
600.00
300.00
120.00
2,701.59
140 FOSTER, BILLIE D.
3113.93
37,367.16
50.00
600.00
300.00
120.00
2,743.93
148 FRIEND, JERRY
3060.85
36,730.20
50.00
600.00
725.00
150.00
2,235.85
161 HANNA, JANICE
1328.73
15,944.76
0.00
0.00
100.00
25.00
1,203.73
145 HANNA, MARK
1328.73
1.5,944.76
50.00
600.00
100.00
50.00
1,228.73
162 HASKINS, IRENE
759.42
9,113.04
50.00
600.00
809.42
169 HELDER, TIM
5668.08
68,016.96
50.00
600.00
750.00
250.00
4,718.08
180 HOYT, RICK
7242.73
86,912.76
50.00
600.00
1,600.00
425.00
5,267.73
146 HUTCHENS, BERNICE
1772.37
21,268.44
50.00
600.00
130.00
1,892.37
143 JOHNSON, CHARLES
2383.98
28,607.76
50.00
600.00
42.67
2,391.31
194 JOHNSON, FRANK
7742.53
92,910.36
50.00
600.00
1,600.00
500.00
5,692.53
103 JOHNSON, WENDELL
760.34
9,124.08
50.00
600.00
810.34
118 JONES, BOB
3204.32
36,451.84
50.00
600.00
0.00
3,254.32
144 KILGORE, DONALD
1986.87
23,842.44
50.00
800.00
19.72
2,017.15
129 LAWSON, FORREST
1522.23
18,266.76
50.00
600.00
350.00
1,222.23
150 LITTLE, PATSY R
709.08
8,508.96
50.00
600.00
759.08
153 LORCH, DONNA G
709.08
8,508.96
50.00
600.00
759.08
156 MARTIN, KENNETH
3585.29
43,023.48
50.00
600.00
500.00
140.00
2,995.29
128 MCCAWLEY, LARRY
1645.43
19,745.16\
50.00
600.00
195.00
50.00
1,450.43
116 MCCHRISTIAN, MARIE
709.08
8,508.96
50.00
600.00
759.08
126 MCWHORTER, KAREN
982.62
11,791.44
50.00
600.00
1,032.62
136 MITCHELL, MICHAEL
2238.15
26,857.80
50.00
600.00
150.00
2,138.15
141 MUELLER, ROSEMARY
2003.82
24,045.84
50.00
600.00
2,053.82
158 MUNSONjWGELA
4075.87
48,910.44
50.00
600.00
500.00
0.00
3,625.87
112 MURPHY, JAKE
393.93
4,727.16
50.00
600.00
0.00
443.93
137 PERDUE, LARRY
2255.02
27,060.24
50.00
600.00
300.00
50.00
1,955.02
164 PERSHALL, ROBIN
1480.65
17,767,80
0.00
0.00
190.00
67.00
1,223.65
132 PHILLIPS. HOMER GENE
1703.34
20,440.08
50.00
600.00
300.00
1,453.34
105 PRESTON, GEORGE DAVID, deceased 8/28/07
12,437.84
0.00
400.00
0.00
199 PRESTON, NORMA J
1554.73
6,218.92
50.00
200.00
200.00
100.00
1,304.73
135 RICKMAN, LOREN
2166.09
25,993.08
50.00
600.00
230.06
65.00
1,921.09
104 RIGGINS, RAYMOND C
1620.75
19,449.00
50.00
600.00
125.00
25.00
1,520.75
183 ROBERTS, ELDON
7261.52
87,138.24
50.00
600.00
1,244.00
400.00
5,667.52
183 ROBERTS, ELDON Plus 25 add pay
999.98
2,756.20
0.00
0.00
999.98
159 SCHUSTER,JOHN H.
3028.56
36,318.72
50.00
600.00
340.00
110.00
2,626.56
168 STANLEY, MELVIN
4737.93
56,855.16
50.00
600.00
1,100.00
300.00
3,387.93
165 STOUT, BETTY
84127
10,095.24
50.00
600.00
0.00
891.27
133 SURLES, JERRY
2642.14
31,705.68
50.00
600.00
600.00
200.00
1,892.14
142 TAYLOR, DENNIS
2003.82
24,045.84
50.00
600.00
110.00
0.00
1,943.82
100 UPTON, FRANKLIN
102629
12,315.48
50.00
600.00
10.00
1,066.29 '
163 WATSON, RICHARD
6744.71
80,936.52
50.00
600.00
1,950.00
425.00
4,419.71
163 Watson, Richard Plus 25 Add'I Pay
921.13
11,053.56
0.00
0.00
921.13
149 WILLIAMS, JOYCE
2465.69
29,588.28
50.00
600.00
217.07
2,298.62
195 WITT, BETTY J
1715.37
20,584.44
50.00
60D.00
115.00
64.00
1,586.37
127 WOOD, PAUL J
1534.88
18,418.56
50.00
600.00
0.00
1,584.88
132513.58
1,580,919.40
2,500.00
30 000.00
17,458.07
4,690.28
1121865.23
112,865.23
6800.9800 6800.9800 6000-9800
5335.00 533505 5335-06 TOW
Year to Date 1,581,319.40 30,OD0.00 86,040.00 1,697,359.40
Anna Mary Dennis benefit start 2/07 11
Warren Dennis deceased 1/19/07
Eldon Roberts extra pay 2
Norma J Preston benefit start 9/07 4
David George Preston deceased 8107
POLICE PENSION FUND
January 2008
Month 1
EMP# NAME
154 ALLEN, CHARLES
13D BAYLES, DON
107 BLACK, JOE P
147 BRADLEY, GERALD
139 BRADLEY, RANDALL
167 BROWN, JOHN
157 CARROLL.RONALDL
151 COLE, RUSTON
109 COOPER, ADRIAN
198 DENNIS, ANNA MARY
160 DUGGER,GARY
140 FOSTER, BILLIE D.
148 FRIEND, JERRY
161 HANNA, JANICE
145 HANNA, MARK
162 HASKINS, IRENE
169 HELDER, TIM
180 HOYT, RICK
146 HUTCHENS, BERNICE
143 JOHNSON, CHARLES
194 JOHNSON, FRANK
103 JOHNSON, WENDELL
118 JONES, BOB
144 KILGORE, DONALD
129 LAWSON, FORREST
150 LITTLE, PATSY R
153 LORCH, DONNA G
156 MARTIN, KENNETH
128 MCCAWLEY, LARRY
116 MCCHRISTIAN, MARIE
126 MCWHORTER, KAREN
136 MITCHELL, MICHAEL
141 MUELLER, ROSEMARY
158 MUNSON,ANGELA
112 MURPHY, JAKE
137 PERDUE, LARRY
164 PERSHALL, ROBIN
132 PHILLIPS, HOMER GENE
199 PRESTON, NORMA J
135 RICKMAN, LOREN
104 RIGGINS, RAYMOND C
183 ROBERTS, ELDON
183 ROBERTS. ELDON Plus 25 add pay
159 SCHUSTER,JOHN H.
168 STANLEY, MELVIN
155 STOUT, BETTY
133 SURLES, JERRY
142 TAYLOR, DENNIS
106 UPTON, FRANKLIN
163 WATSON, RICHARD
163 Watson, Richmd Plus 25 Add1 Pay
149 WILLIAMS, JOYCE
195 WITT, BETTY J
127 WOOD, PAUL J
6wo-ww
Regular Mo 5335-00
Benefit YTD Reg Benefit
5335-05
Suppl. YTD Suppl. Fed tax
Check
St Tax Net
2584.64
2,584.64
50.00
50.00
220.00
66.89
2,347.75
158741
1,587.41
50.00
50.00
1,637.41
1125.64
1,125.64
50.00
50.00
100.00
20.00
1,055.64
4820.09
4,820.09
50.00
50.00
975.00
300.00
3,595.09
2860.17
2,860.17
50.00
50.00
38200
100.00
2,428.17
4362.01
4,362.01
50.00
50.00
600.00
200.00
3,61201
2106.04
2,106.04
50.00
50.00
250.00
105.00
1,801.04
3065.74,
3,065.74
50.00
50.00
600.00
200.00
2,315.74
638.42
638.42
.50.00
50.00
688.42
1376.88
1,376.88
50.00
50.00
1,426.88
3163.74
3,163.74
50.00
50.00
300.00
120.00
2,793.74
3207.35
3,207.35
50.00
50.00
300.00
120.00
2,837.35
3152.68
3,15268
50.00
50.00
725.00
150.00
2,327.68
1366.59
1,368.59
0.00
0.00
100.00
25.00
1,243.59
1368.59
1,368.59
50.00
50.00
100.00
50.00
1,268.59
78220
782.20,
50.00
50.00
832.20
5838.12
5,838.12
50.00'
50.00
750.00
250.00
4,888.12
7460.01
7,460.01
50.00
50.00
1,600.00
425.00
5,485.01
1825.64
1,825.54
50.00
50.00
130.00
1,745.54
2455.50
2,455.50
50.00
50.00
42.67
2,462.83
7974.81
7,974.81
50.00
50.00
1,600.00
500.00
5,924.81
783.15
783.15
50.00
50.00
833.15
3300.45
3,300.45,
50.00
50.00
0.00
3,350.45
2046.48
2,046.48
50.00
50.00
19.72
2,076.76
15679D
1,567.90
50.00
50.00
350.00
1,267.90
730.35
730.35.
50.00
50.00
780.35
730.35
730.35
50.00
50.00
780.35
3692.85
3,692.85
50.00
50.00
500.00
140.00
3,102.85
1694.79
1,694.79
50.00
50.00
195.00
50.00
1,499.79
73D.35
730.35
50.00
50.00
780.35
1012.10
1,012.10
56.00
50.00
1,062.10
2305.29
2,305.29
50.00
50.00
150.00
2,205.29
2063.93
2,063.93
50.00
50.01
2,113.93
4198.15
4,198.15
50.00
5400
50D.00
0.00
3,748.15
405.75
405.75
50.00
50.00
0.00
455.75
2322.67
2,322.67
50.00
50.00
300.00
50.00
2,022.67
1525.07
1,525.07
0.00
0.00
190.00
67.00
1,268.07
1754-4
1,754.44
50.00
50.00
300.00.
1,504.44
1601.37
1,601.37
50.00
50.00
2D0.00
100.00
1,351.37
2231.07
2,231.07
50.00
50.00
230.00
65.00
1,986.07
1669.37
1,669.37
50.00
50.00
125.00
25.00
1,569.37
7479.37
7,479.37
50.00
50.01)
1,350.OD
500.00
5,679.37
1029.98
1,029.98
0.00
0.00
1,029.98
3117.36
3,117.36
50.00
50.00
340.00
110.00
2,717.36
4880.07
4,880.07
SOHO
50.00
1,100.00
300.00
3,530.07
866.51
866.51
5400
50.00
0.01)
916.51
2721.40
2,721.40
50.00
50.00
600.00
200.00
1,971.40
2063.93
2,063.93
50.00
50.00
110.00
0.00
2,003.93
1057.08
1,057.08
50.00
50.00
10.00
1,097.08
694705
6,947.05
50.00
50.00
1,950.00
425.00
4,622.05
948.76
948.76
0.00
0.00
948.76
2539.66
2,539.66
50.00
50.00
217.07
2,372.59
1766.83
1,766.83
50.00
50.00
115.00
64.00
1,637.83
1580.93
1.580.93
50.00
50.00
MOD
1.630.93
116,634.63
POLICE PENSION FUND
February 2008
6800-9800
6800-9800
Month 2
Regular Mo
5335-M
5335-05
Check
EMP# NAME
Benefit
YTD Reg Benefit
Suppl.
YTD Suppl.
Fed Tax
St Tax
Net
154 ALLEN, CHARLES
2584.64
5,169.28
50.00
100.00
220.00
66.89
2,347.75
130 BAYLES, DON
1587.41
3,174.82
50.00
100.00
1,637.41
107 BLACK, JOE P
1125.64
2,251.28
50-00'
100.00
100.00
20.00
1,055.64
147 BRADLEY, GERALD
4820.09
9,640.18
50.00
100.00
975.00
300.00
3,595.09
139 BRADLEY, RANDALL
2860.17
5,720.34
50.00
100.00
382.00
100.00
2,428.17
167 BROWN, JOHN
4362.01
8,724.02
50.00
100.00
600.00
200.00
3,612.01
157 CARROLL,RONALD L
2106.04
4,212.08
50.00
100.00,
250.00
105.00
1,801.04
151 COLE, RUSTON
3065.74
6,131.48
50.00
100.00
600.00
200.00
2,315.74
109 COOPER, ADRIAN
638.42
1,276.84
50.00
100.00
688.42
198 DENNIS, ANNA MARY
1376.88
2,753.76
50.00
100.00
1,426.88
160 DUGGER,GARY
3163.74
6,327.48
50.00
100.00
300.00
120.00
2,793.74
140 FOSTER, BILLIE D.
3207.35
6,414.70
50.00
100.00
300.00
120.00
2,837.35
148 FRIEND, JERRY
3152.68
6,305.36
50.00
100.00
725.00
150.00
2,327.68
161 HANNA, JANICE
1368.59
2,737.18
0.00
0.00
100.00
25.00
.1,243.59
145 HANNA, MARK
1368.59.
2,737.18
50.00
100.00
100.00
50.00
1,268.59
162 HASKINS, IRENE
782.20
1,564.40
50.00
100.00
832,20
169 HELDER, TIM
5838.12
11,676.24
50.00
100.00
750.00
250.00
4,888.12
180 HOYT, RICK
7460.01
14,920.02
50.00
100.00
1,600.00
425.00
5,485.01
146 HUTCHENS, BERNICE
1825.54
3,651.08
50.00
100.00
130.00
1,745.54
143 JOHNSON, CHARLES
2455.50
4,911.00
50.00
100.00
42.67
2,462.83
194 JOHNSON, FRANK
7974.81
15,949.62
50.00
100.00
1,600.00
500.00
5,924.81
103 JOHNSON, WENDELL
783.15
1,566.30
50.00
100.00
833.15
118 JONES, BOB
3300.45
6,600.90
50.00
100.00
0.00
3,350.45
144 KILGORE, DONALD
2046.48
4,092.96
50.00
100.00
19.72
2,076.76
129 LAWSON, FORREST
1567.90
3,135.80
50.00
100.00
350.00
1,267.90
150 LITTLE, PATSY R
730.35
1,460.70
50.00
100.00
7$0.35
153 LORCH, DONNA G
730.35
1,460.70
50.00
100.00
780.35
156 MARTIN, KENNETH
3692.85
7,385.70
50.00
100.00
500.00
140.00
3,102.85
128 MCCAWLEY, LARRY
1694.79
3,389.58
50.00
100.00
195.00
50.00
1,499.79.
116 MCCHRISTIAN, MARIE
730.35
1,460,70
50.00
100.00
780.35
126 MCWHORTER, KAREN
1012.10
2,024.20
50.00
100.00
1,062.10
136 MITCHELL, MICHAEL
2305.29
4,610.58
50.00
100.00
150.00
2,205.29
141 MUELLER, ROSEMARY
2063.93
4,127.86
50.00
100.00
2,113.93
158 MUNSON,ANGELA
4198.15
8,396.30
50.00
100.00
500.00
0.00
3,748.15
112 MURPHY, JAKE
405.75
811.50,
50.00
100.00
0.00
455.75
137 PERDUE, LARRY
2322.67
4,645.34
50.00
100.00
300.00
50.00
2,022.67
164 PERSHALL, ROBIN
1525.07
3,050.14
0.00
0.00
190.00
67.00
1,268.07
132 PHILLIPS, HOMER GENE
1754.44
3,508.88
50.00
100.00
300.00
1,504.44
199 PRESTON, NORMAJ
1601.37
3,202.74
50.00
100.00
200.00
100.00
1,351.37
135 RICKMAN, LOREN
2231.07
4,462.14
50.00
100.00
230.00
65.00
1,986.07
104 RIGGINS, RAYMOND C
1669.37
3,338.74
50.00
100.00
125.00
25.00
1,569.37
183 ROBERTS, ELDON
7479.37
14,958.74
50.00
100.00
1,350.00
500.00
5,679.37
183 ROBERTS, ELDON Plus 25 add pay
1029.98
2,059.96
0.00
0.00
1,049.98
159 SCHUSTER,JOHN H.
3117.36
6,234.72
50.00
100.00
340.00
110.00
2,717.36
168 STANLEY, MELVIN
4880.07
9,760.14
50.00
100.00
1,100.00
300.00
3,530.07
155 STOUT, BETTY
866.51
1,733.02
50.00
100.00
0.00
916.51
133 SURLES, JERRY
2721.40
5,442.80
50.00
100.00
600.00
200.00
1,971.40
142 TAYLOR, DENNIS
2063.93
4,127.86
50.00
100.00
110.00
0.00
2,003.93
106 UPTON, FRANKLIN
1057.08
2,114.16
50.00
100.00
10.00
1,097,08
163 WATSON, RICHARD
6947.05
13,894.10
50.00
100.00
1,950.00
425.00
• 4,622.05
163 Watson, Richard Plus 25 Add'I Pay
948.76
1,897.52
0.00
0.00
948.76
149 WILLIAMS, JOYCE
2539.66
5,079.32
50.00
100.00
217.07
2,372.59
195 WITT, BETTY J
1766.83
3,533.66
50.00
100.00
115.00
64.00
1,637.83
127 WOOD, PAUL
1580.93
3,161.86
50.00
100.00
0.00
1,630.93
136488.98
272,977.96
2,500.00
5,000.00.
17,564.07
4,790.28
116,634.63
116,634.63
POLICE PENSION FUND
March 2008
Month 3
EMP# NAME
154 ALLEN, CHARLES
130 BAYLES, DON
107 BLACK, JOE P
147 BRADLEY, GERALD
139 BRADLEY, RANDALL
167 BROWN, JOHN
157 CARROLL,RONALD L
151 COLE, RUSTON
109 COOPER, ADRIAN
198 DENNIS, ANNA MARY,
160 DUGGER,GARY
140 FOSTER, BILLIE D.
148 FRIEND, JERRY
161 HANNA, JANICE
145 HANNA, MARK
162 HASKINS, IRENE
169 HELDER, TIM
180 HOYT, RICK
146 HUTCHENS, BERNICE
143 JOHNSON, CHARLES
194 JOHNSON, FRANK
103 JOHNSON, WENDELL
118 JONES, BOB
144 KILGORE, DONALD
129 LAWSON, FORREST
150 LITTLE, PATSY R
153 LORCH, DONNA G
156 MARTIN, KENNETH
128 MCCAWLEY, LARRY
116 MCCHRISTIAN, MARIE
126 MCWHORTER, KAREN
136 MITCHELL, MICHAEL
141 MUELLER, ROSEMARY
158 MUNSON,ANGELA
112 MURPHY, JAKE
137 PERDUE, LARRY
164 PERSHALL, ROBIN
132 PHILLIPS, HOMER GENE
199 PRESTON, NORMA J
135 RICKMAN, LOREN
104 RIGGINS, RAYMOND C
183 ROBERTS, ELDON
183 ROBERTS, ELDON Plus 25 add pay
159 SCHUSTER,JOHN H.
168 STANLEY, MELVIN
155 STOUT, BETTY
133 SURLES, JERRY
142 TAYLOR, DENNIS
106 UPTON, FRANKLIN
163 WATSON, RICHARD
163 Watson, Richard Plus 25 Add'1 Pay
149 WILLIAMS, JOYCE
195 WITT, BETTY J
127 WOOD, PAUL J
6600-9800
Regular Mo 5335-00
Benefit YTD Reg Benefit
6800-9800
5335.05
Suppl. YTD Suppl. Fed Tax
Check
St Tax Net
2584.64
7,753.92
50.00
150.00
220.00
66.89
2,347.75
1587.41
4,762.23
50.00
150.00
1,637.41
1125.64
3,376.92
50.00
150.00
100.00
20.00
1,055.64
4820.09
14,460.27
50.00
150.00
975.00
300.00
3,595.09
2860.17
8,580.51
50.00
150.00
382.00
100.00
2,428.17
4362.01
13,086.03
50.00
150.00
600.00
200.00
3;612.01
2106.04
6,318.12
50.00
150.00
250.00
105.00
1,801.04
3065.74
9,197.22
50.00
150.00
600.00
200.00
2,315.74
638.42
1,915.26
50.00
150.00
688.42
1376.88
4,130.64
50.00
150.00
1,426.88
3163.74
9,491.22
50.00
150.00
300.00
120.00
2,793.74
3207.35
9,622.05
50.00
150.00
300.00
120.00
2,837.35
3152.68
9,458.04
50.00
150.00
725.00
150.00
2,327.68
1368.59
4,105.77
0.00
0.00
100.00
25.00
1,243.59
1368.59
4,105.77
50.00
150.00
100.00
50.00
1,268.59
782.20
2,346.60
50.00
150.00
832.20
5838.12
17,514.36
50.00
150.00
750.00
250.00
4,888.12
7460.01
22,380.03
50.00
150.00
1,600.00
425.00
5,485.01
1825.54
5,476.62
50.00
150:00
130.00.
1,745.54
2455.50
7,366.5D
50.00
150.00
42.67
2,462.83
7974.81
23,924.43
50.00
150.00
1,600.00
500.00
5,924.81
783.15
2,349.45
50.00
150.00
833.15
3300.45
9,901.35
50.00
150.00
0.00
3,350.45
2046.48
6,139.44
50.00
150.00
19.72
2,076.76
1567.90
4,703.70
50.00
150.00
350.00
1,267.90
730.35
2,191.05
50.00
150.00
780.35
730.35
2,191.05
50.00
150.00
780.35
3692.85
11,078.55
50.00
150.00
500.00
140.00
3,102.85
1694.79
5,084.37
50.00
150.00
195.00
50.00
1,499.79
730.35
2,191.05
50.00
150.00
780.35
1012.10
3,036.30
50.00
150.00
1,062.10
2305.29
6,915.87
50.00
150.00
150.00
2,205.29
2063.93
6,191.79
50.00
150.00
2,113.93
4198.15
12,594.45
50.00
150.00
500.00
0.00
3,748.15
405.75
1,217.25
50.00
150.00
0.00
455.75
2322.67
6,968.01
50.00
150.00
300.00
50.00
2,022.67
1525.07
4,575.21
0.00
0.00
190.00
67.00
1,268.07
1754.44
5,263.32
50.00
150.00
300.00
1,504.44
1601.37
4,804.11
50.00
150.00
200.00
100.00
1,351.37
2231.07
6,693.21
50.00
150.00
230.00
65.00
1,986.07
1669.37
5,008.11
50.00
150.00
125.00
25.00
1,569.37
7479.37
22,438.11
50.00
150.00
1,350.00
500.00
5,679.37
1029.98
3,089.94
0.00
0.00
1,029.98
3117.36
9,352.08
50.00
150.00
340.00
110.00
2,717.36
4880.07
14,640.21
50.00
150.00
1,100.00
300.00
3,530.07
866.51
2,599.53
50.00
150.00
0.00
916.51
2721.40
8,164.20
50.00
150.00
600.00
200.00
1,971.40
2063.93
6,191.79
50.00
150.00
110.00
0.00
2,003.93
1057.08
3,171.24
50.00
150.00
10.00
1,097.08
6947.05
20,841.15
50.00
150.00
1,950.00
425.00
4,622.05
948.76
2,846.28
0.00
0.00
948.76
2539.66
7,618.98
50.00
150.00
217.07
2,372.59
1766.83
5,300.49
50.00
150.00
115.00
64.00
1,637.83
1580.93
4,742.79
50.00
150.00
0.00
1,630.93
136488.98
409,466.94
2,500.00
7,500.00
17,564.07
4,790.28
116,634.63
116,634.63
Policemen's Pension And Relief Fund Board Of Trustees
Chairman
Mayor Dan Coody
1418 E. Rodgers Drive
Fayetteville, AR 72701
443-6758 — Home
575-8330 — Work
01/01/01-Indef.
Treasurer
Sondra Smith
113 W. Mountain
Fayetteville, AR 72701
442-7838 — Home
575-8323 — Work
02/03/03-Indef.
Secretary
Retired Position 1
Eldon Roberts
1197 S. Roberts Road
Fayetteville, AR 72701
521-0183 — Home
601-6469 — Cell
Replaced Randy Bradley
06/01/05-05/31/07 1St Term
06/01/07-05/31/09 2nd Term
Retired Position 2
Jerry Friend
1640 Stewart
Fayetteville, AR 72703
443-9337 — Home
444-1747 — Work
05/01/96-04/30/98 1St Term
05/01/98-04/30/00 2nd Term
05/01/00-04/30/02 3rd Term
05/01/02-04/30/04 4th Term
05/01/04-05/31/06 5th Term
06/01/06-05/31/08 6th Term
30
Retired Position 3
Tim Helder
188 Tower Street
West Fork, AR 72774
839-8104 — Home
530-0142 — Cell
Replaced Eldon Roberts
05/01/03-05/31/05 1" Term
06/01/05-05/31/07 2nd Term
06/01/07-05/31/09 3rd Term
Retired Position 4
Melvin W. Stanley
PO Box 289
Greenland, AR 72737
839-3106 — Home
601-1224 — Cell
Replaced Dr. James Mashburn
11/15/06-05/31/07 Unexpired Term
06/01/07-05/31/09 1St Term
Retired Position 5
Frank Johnson
3328 Jasper Lane
Springdale, AR 72764
521-0774 — Home
409-6122 — Cell
Replaced Jerry Surles
06/01/06-05/31/08 1St Term
In 2005 Act 386 changed the composition
of the board eliminating the physician
position and adding one active member.
The active position is now a retired
position due to the fact that there are no
current active members on the pension
plan. The physician position was also
replaced by a retired member.
Policemen's Pension and Relief Board of Trustees
Third Thursday of the First Month of each Quarter
Weekly Meetings List
1:30 p.m.
City Administration Room 326
January 17, 2008
April 17, 2008
July 17, 2008
October 16, 2008
RECEIVED AAkllia
NOV 2 D 2007 DRIVER SPECIALTY GROUP
CITY OF FAYETTEVILLE
CITY CLERK'S OFFICE
November 13, 2007
Mayor Dan Coody
Fayetteville Policemen Retirement System
113 West Mountain
Fayetteville, NC 72.701
Dear Mayor Dan Coody,
We would like to take this opportunity to introduce you to Alliant Insurance Services. We understand the
problems you face with the high cost of Fiduciary Liability Insurance. We at Alliant Insurance Services have
developed a national program for various retirement systems and pension funds across the country. We have created
a Fiduciary Liability Insurance Program (FLIP) to provide broader coverage terms and highly competitive pricing.
We are very excited about this program and are eager to talk to you as well as provide you with additional
information. This program has had tremendous response from other organizations as well as several NASRA
members and we believe it will provide your organization with an alternative for enhanced coverage and reduced
pricing. Feel free to contact myself or Jay Zuhlke if you wish to discuss your insurance needs before the conference.
Sincerely,
Alliant Insurance Services
Shawn Kraatz
Assistant Vice President
949-660-8188
Jay Zuhlke
Account Executive
949-809-1478
Alliant Insurance Services, Inc. • 1301 Dove Street, Suite 200, Newport Beach, CA 92660
PnohE (949)756-0271 FAX (949) 756-2713 www.alliantinsurance.com • License No. OC36861
PUBLIC ENTITY SOLUTIONS
FIDUCIARY LIABILITY. INSURANCE PROGRAM (FLIP)
he Fiduciary Liability Insurance Program (FLIP)
was launched by Driver Alliant Insurance Services
in 2005 to'bring the cost advantages of group
purchase coverage to retirement systems seeking .
individualized liability coverage at a cost significantly
less than could be purchased as a single public entity.
With extensive experience in creating joint purchase
insurance programs for public entities, Driver Alliant
created. FLIP to meet the specialized liability coverage
needs of retirement systems. By leveraging the combined
size of the program's membership and Driver Alliant's
long-term relationships with insurance carriers that serve
the public entity marketplace, broad liability coverage
is delivered to members at a substantial cost savings.
Participant savings have averaged 25% below market
for standalone policies.
Participants in FLIP do not share risk. Each participat-
ing
articipating entity has its own limits of liability and a choice
of deductibles or self-insured retention. As a group
purchase, however, the program offers greater stability
as the insurance market fluctuates: The combined size
of the program ensures the most competitive structure in
both hard and soft markets.
Program Features
• $100;000 sub -limit of liability for cap penalties
(typically excluded under standard policies)
• Full prior acts coverage
Various limit and deductible options available
Definition of insured includes directors and officers
• Full severability.of application. endorsement
• HIPAA extension
• Government plan endorsement
•. Public employer with sponsor organization coverage
• Applicable states endorsement
• Coverage for investment in debt obligations of
insured's state
• Continuity of coverage
Marital estate extension
About Driver Alliant Insurance Services
Driver Alliant Insurance Services is an industry leader
in providing specialty brokerage services to the public
sector. With more than 30 years of experience in
meeting the unique insurance needs of public entity
clients, and over $500 million in premiums and premium
equivalents placed, we understand how public entities
are perceived within the insurance marketplace and
how the operating environment of the public sector
shapes the risk transfer approach and requirements
of these organizations.
Continued on reverse
LONGER INVESTMENTS INCORPORATED
v
A Registered Investment Advisor
January 5, 2008
Ms. Sondra Smith
City of Fayetteville Police Pension Fund
113 W. Mountain St.
Fayetteville, Arkansas 72701
Dear Sondra:
RECEIVED
JAN 0 8 2008
CITY OF FAYETTEVILLE
CITY CLERK'S OFFICE
Enclosed you will find the 2007 fourth-quarter reports for the City of Fayetteville Police
Pension Fund. These reports include a portfolio appraisal and a summary of realized
gains/losses and income/expenses. Detailed reports of realized gains/losses and
income/expenses are included at the back of the report package. As instructed, the
account at Northern Trust will be billed for the management fee.
Also enclosed is a copy of our quarterly newsletter, The Longer View. Please refer to the
newsletter for a discussion of 2007 market activity and our outlook for the new year.
Performance for 2007 is detailed below. Performance is quoted net of all fees and
expenses.
City of Fayetteville
Police Pension Fund
Domestic
Foreign
Government
Total
Equities
Funds
Bonds
Account
10.8%
2.9%
6.5%
8.2%
In comparison, 2007 returns for the market indices are listed below. The equity return in
the portfolio almost doubled the performance of the S&P 500.
S&P 500 (cash basis)
S&P 500 (with reinvested dividends)
Dow Jones Industrial Average (cash basis)
NASDAQ over-the-counter index
Russell 2000 small -capitalization index
Salomon Bros. Total Return Treasury Index
P.O. Box 1269
Fayetteville, Arkansas 72702
Telephone: 479-443-5851
Toll free: 800-827-7710
Fax: 479-443-7129
Web site: www.longerinv.com
Ms. Sondra Smith
January 5, 2008
Page Two
Longer Investments appreciates the opportunity to assist with the management of the City
of Fayetteville Police Pension Fund's assets. Please do not hesitate to call if you have any
questions or comments, or if we can be of further service. Best wishes for a happy,
healthy new year.
Sincerely,
President
EML:kmc
Enclosures
City of Fayetteville
Police Pension Fund
FOURTH QUARTER REPORTS
December 31, 2007
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Quantity
Security
Common Stock
1.600
2,650
AT&T
2,225
Accenture Ltd.
2,315
Adobe Systems Inc.
1,925
Allergan Inc.
1,935
American International
118,246.44
Group Inc.
2,860
Amphenol Corp.
2,750
Archer -Daniels -Midland
38.07
Co.
1,000
B.P. Amoco PLC A.D.S.
2,600
Ceradyne Inc.
2,000
Chevron Corp.
3,450
Cisco Systems Inc.
2,500
Coca-Cola
1,275
Devon Energy Corp.
2,500
Dow Chemical Co.
6,700
EMC Corporation
2,225
Emerson Electric
1,525
ExxonMobil
7,550
Financial Select Sector
11.93
SPDR Fund
9,450
Flextronics International
32.33
Ltd.
5,815
General Electric
220
Google
4,500
Health Care Select
36.52
Sector SPDR Fund
6,000
Intel Corp.
2,650
Johnson & Johnson
3,900
Kraft Foods Inc.
4,500
Microsoft Corp.
2,000
Northern Trust Corp.
7,600
Oracle Corp.
1,215
Parker Hannifin Corp.
4,150
Pfizer
5,500
Powershares Dynamic
714.00
Networking
7,915
Powershares Water
0.9
Resource
1,900
Procter & Gamble
3,350
Teva Pharmaceuticals
2,500
Verizon
0.00
Communications
3,700
Walmart Stores
3,180
eBay Inc.
Preferred Debt Securities
4,000 AT&T Preferred
6.375% A2/A (C
2-12-12)
4,000 G.E. Preferred 6.625%
AAA/AAA (C 6-28-07)
Longer Investments Inc.
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
December 31, 2007
Unit Total Market
Cost Cost Price Value
27.29
110,134.00
72,325.00
1.600
37.40
5.9
83,226.12
80,166.75
42.69
0.420
98,834.06
1.1
61.43
98,919.95
118,246.44
0.000
55.65
0.0
107,685.27
123,662.00
38.07
0.200
108,887.99
0.3
32.79
112,810.50
90,167.93
0.800
55.58
110,134.00
55,576.67
1.600
47.85
5.9
124,398.79
80,166.75
44.40
0.420
88,805.53
1.1
33.06
98,919.95
114,048.27
0.000
41.90
0.0
104,754.84
123,662.00
66.34
0.200
84,581.34
0.3
42.23
112,810.50
105,575.50
0.800
16.30
1.4
109,205.20
132,618.20
26.98
0.060
60,025.82
0.2
55.07
127,682.50
83,989.24
0.460
29.63
1.4
223,702.64
73,170.00
11.93
2.600
112,759.58
4.7
32.33
122,018.00
188,021.28
0.000
531.61
0.0
116,953.28
186,660.00
36.52
2.320
164,342.25
5.2
18.33
110,134.00
109,997.24
1.600
61.53
5.9
163,051.47
80,166.75
33.20
0.420
129,489.45
1.1
30.29
98,919.95
136,291.50
0.000
57.45
0.0
114,891.13
123,662.00
18.04
0.200
137,139.48
0.3
55.00
112,810.50
66,825.57
0.800
23.15
1.4
96,072.50
132,618.20
18.82
0.060
103,482.50
0.2
18.31
127,682.50
144,928.30
0.460
64.17
1.4
121,931.67
73,170.00
38.62
2.600
129,384.85
4.7
40.60
122,018.00
101,500.00
0.000
44.47
0.0
164,520.87
186,660.00
33.60
2.320
106,847.63
5.2
4,242,467.18
24.05 96,200.00
24.46 97,833.20
194,033.20
1
Pct. Unit Annual Cur.
Assets Income Income Yield
41.56
110,134.00
1.0
1.600
4,240.00
5.9
36.03
80,166.75
0.7
0.420
934.50
1.1
42.73
98,919.95
0.9
0.000
0.00
0.0
64.24
123,662.00
1.1
0.200
385.00
0.3
58.30
112,810.50
1.0
0.800
1,548.00
1.4
46.37
132,618.20
1.2
0.060
171.60
0.2
46.43
127,682.50
1.2
0.460
1,265.00
1.4
73.17
73,170.00
0.7
2.600
2,600.00
4.7
46.93
122,018.00
1.1
0.000
0.00
0.0
93.33
186,660.00
1.7
2.320
4,640.00
5.2
27.07
93,391.16
0.9
0.000
0.00
0.0
61.37
153,425.00
1.4
1.360
3,400.00
3.2
88.91
113,360.25
1.1
0.560
714.00
0.8
39.42
98,550.00
0.9
1.680
4,200.00
4.0
18.53
124,151.00
1.2
0.000
0.00
0.0
56.66
126,068.50
1.2
1.200
2,670.00
4.4
93.69
142,877.25
1.3
1.400
2,135.00
2.5
28.93
218,421.50
2.0
1.046
7,897.00
3.5
12.06
113,967.00
1.1
0.000
0.00
0.0
37.07
215,562.05
2.0
1.240
7,210.60
3.8
691.48
152,125.60
1.4
0.000
0.00
0.0
35.31
158,895.00
1.5
0.521
2,346.12
1.4
26.66
159,960.00
1.5
0.450
2,700.00
2.5
66.70
176,755.00
1.6
1.660
4,399.00
2.7
32.63
127,257.00
1.2
1.080
4,212.00
3.3
35.60
160,200.00
1.5
0.440
1,980.00
1.5
76.58
153,160.00
1.4
1.120
2,240.00
1.9
22.58
171,608.00
1.6
0.000
0.00
0.0
75.31
91,501.65
0.8
0.840
1,020.60
1.5
22.73
94,329.50
0.9
1.280
5,312.00
5.5
18.04
99,220.00
0.9
0.000
0.00
0.0
21.40
169,381.00
1.6
0.071
558.17
0.4
73.42
139,498.00
1.3
1.400
2,660.00
2.2
46.48
155,708.00
1.4
0.340
1,139.00
0.9
43.69
109,225.00
1.0
1.720
4,300.00
4.2
47.53
175,861.00
1.6
0.880
3,256.00
2.0
33.19
105,544.20
1.0
0.000
0.00
0.0
4,967,844.56
46.0
80,133.58
2.0
24.12
96,480.00
0.9
1.594
6,375.00
6.6
24.66
98,640.00
0.9
1.656
6,625.00
6.8
1.8
6.7
195,120.00
13,000.00
LONGER INVESTMENTS INCORPORATED
16 A Registn-cd Investment Advisor
Longer Investments Inc.
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
December 31, 2007
2
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Unit
Total
Market
Pct.
Unit
Annual
Cur.
Quantity
Security
Cost
Cost
Price
Value
Assets
Income
Income
Yield
Mutual Funds -Equity
3,600.0000
Japan Smaller
11.13
40,063.77
9.51
34,236.00
0.3
0.004
12.60
0.0
Capitalization Fund Inc.
1,250.0000
Thai Fund Inc.
13.66
17,079.88
13.05
16,312.50
0.2
0.423
528.75
3.1
775.0000
iShares MSCI Hong
22.71
17,600.25
21.93
16,995.75
0.2
0.311
240.93
1.4
Kong Index Fund
20,000.0000
iShares MSCI Japan
10.80
216,006.25
13.29
265,800.00
2.5
0.099
1,989.18
0.9
Index Fund
800.0000
iShares MSCI Malaysia
12.72
10,176.00
12.73
10,184.00
0.1
0.195
156.31
1.5
Index Fund
1,820.0000
iShares MSCI Taiwan
12.54
22,814.97
15.03
27,354.60
0.3
0.302
548.97
2.4
Index Fund
3,750.0000
iShares S&P Europe
82.54
309,531.29
114.34
428,775.00
4.0
2.083
7,810.60
2.5
350 Index
633,272.41
799,657.85
7.4
11,287.34
1.9
Corporate Bonds
160,000
Wells Fargo & Co.
100.65
161,033.25
100.12
160,196.96
1.5
6.250
10,000.00
6.2
AA2/AA (NC)
6.250% Due 04-15-08
100,000
McDonald's Corp A3/A
98.45
98,450.00
105.70
105,703.30
1.0
6.000
6,000.00
6.1
(NC) 6.21% YTM
6.000% Due 04-15-11
Accrued Interest
3,377.78
0.0
259,483.25
269,278.04
2.5
16,000.00
6.2
Government Bonds
150,000
U. S. Treasury Note
100.00
150,000.00
108.25
162,375.00
1.5
5.125
7,687.50
5.1
5.125% Due 05-15-16
Accrued Interest
971.50
0.0
150,000.00
163,346.50
1.5
7,687.50
5.1
Government Agency
150,000
Federal Home Loan
100.00
150,000.00
100.91
151,359.38
1.4
5.250
7,875.00
5.3
_ .
Bank (NC)
5.250% Due 11-14-08
135,000
Federal Home Loan
100.00
135,000.00
100.06
135,084.38
1.3
4.500
6,075.00
4.5
Bank (Callable 2-26-08
@ 100, 1X)
4.500% Due 11-26-08
75,000
Federal Farm Credit
100.00
75,000.00
101.06
75,796.88
0.7
5.200
3,900.00
5.2
Bureau (NC)
5.200% Due 12-10-08
150,000
Federal Home Loan
100.00
150,000.00
100.00
150,000.00
1.4
4.300
6,450.00
4.3
Bank (Callable 6-10-08
@ 100, 1X)
4.300% Due 12-10-08
100,000
Federal Farm Credit
100.50
100,500.00
101.63
101,625.00
0.9
5.400
5,400.00
5.4
Bank (NC) 5.31% YTM
5.400% Due 02-11-09
50,000
Federal Home Loan
99.88
49,937.50
101.44
50,718.75
0.5
5.250
2,625.00
5.3
Bank (NC)
j
5.250% Due 02-13-09
2
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
3
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
PORTFOLIO
APPRAISAL
City
of Fayetteville Police Pension Fund
December 31, 2007
Unit
Total
Market
Pct.
Unit
Annual
Cur.
Quantity
Security
Cost
Cost
Price
Value
Assets
Income
Income
Yield
100,000
Federal Farm Credit
100.00
100,000.00
104.56
104,562.50
1.0
6.750
6,750.00
6.8
Bank (NC)
6.750% Due 07-07-09
250,000
Federal Home Loan
100.00
250,000.00
100.47
251,171.88
2.3
5.100
12,750.00
5.1
Bank (Callable 5-20-08
@ 100, 1X)
5.100% Due 11-20-09
225,000
Federal Home Loan
100.00
225,000.00
100.16
225,351.56
2.1
5.125
11,531.25
5.1
Bank (Callable 4-9-08
@ 100, quarterly)
5.125% Due 04-09-10
320,000
Federal Home Loan
100.00
320,000.00
101.38
324,400.00
3.0
5.250
16,800.00
5.3
Bank (Callable 2-9-09
@ 100, 1X)
5.250% Due 02-09-11
65,000
Federal Home Loan
100.00
65,000.00
101.44
65,934.38
0.6
5.020
3,263.00
5.0
Bank (Callable 4-13-09
@ 100, IX)
5.020% Due 04-13-11
50,000
Federal Home Loan
100.00
50,000.00
107.50
53,750.00
0.5
6.000
3,000.00
6.0
Bank (NC)
6.000% Due 05-13-11
l 100,000
Fed Nat'l Mortgage
100.00
100,000.00
101.06
101,062.50
0.9
5.400
5,400.00
5.4
Assoc (Callable 9-15-08
-
@ 100, 1X)
5.400% Due 09-15-11
100,000
Federal Farm Credit
100.00
100,000.00
102.53
102,531.25
1.0
5.080
5,080.00
5.1
Bank (Callable
10-13-09 @ 100, CC)
5.080% Due 10-13-11
250,000
Federal Home Loan
100.00
250,000.00
101.03
252,578.13
2.3
5.020
12,550.00
5.0
Bank (Callable
12-12-08 @ 100, 1X)
5.020% Due 06-12-12
100,000
Federal Home Loan
100.00
100,000.00
103.47
103,468.75
1.0
5.000
- 5,000.00
5.0
Bank (Callable 10-1-10
@ 100, 1X)
5.000% Due 10-01-12
41,667
Federal Home Loan
100.00
41,666.67
100.00
41,666.67
0.4
5.080
2,116.67
5.1
Bank (Callable since
10-3-03 @ 100, CC)
5.080% Due 10-03-12
250,000
Federal Home Loan
100.00
250,000.00
100.00
250,000.00
2.3
5.000
12,500.00
5.0
Bank (Callable since
10-5-07 @ 100, CC)
5.000% Due 10-05-12
250,000
Federal Home Loan
100.00
250,000.00
101.13
252,812.50
2.3
5.250
13,125.00
5.3
Bank (Callable
11-14-08 @ 100, 1X)
5.250% Due 11-14-12
50,000
Federal Home Loan
100.00
50,000.00
100.00
50,000.00
0.5
5.050
2,525.00
5.1
Bank (Callable since
2-20-04 @ 100, CC)
5.050% Due 02-20-13
3
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
December 31, 2007
Unit Total Market
Quantity Security Cost Cost Price Value
50,000
Federal Farm Credit
100.00
Income
Bank (Callable since
5.200
228,523.72
11-6-06 @ 100, CC)
9,241.50
4.0
5.200% Due 11-06-13
252,584.46
125,000
Federal Farm Credit
100.00
9,753,646.29
Bank (Callable since
100.0
6-22-07 @ 100, CC)
10,789,154.30
354,557.84
5.300% Due 06-22-15
200,000
Federal Farm Credit
99.97
Bank (NC) 6.127%
YTM
6.125% Due 12-29-15
300,000
Federal Home Loan
100.00
Mortgage Corp.
(Callable 4-28-09 @
100, quarterly)
6.000% Due 04-28-16
100,000
Fed Nat'l Mortgage
100.00
Assoc (Callable
10-24-08 @ 100,
quarterly)
6.000% Due 10-24-16
275,000
Federal Farm Credit
100.00
Bank (Callable 7-13-10
@ 100, CC)
6.140% Due 07-13-17
Accrued Interest
Alternative Investments
3,400 Market Vectors Gold 46.99
Miners
Cash and Equivalents
Dividends Accrued
Money Market
TOTAL PORTFOLIO
50,000.00 100.03
125,000.00 100.00
199,938.00 112.25
300,000.00 102.51
100,000.00 101.44
275,000.00 105.19
3,862,042.17
159,763.62 45.83
159,763.62
50,015.63
125,000.00
224,500.00
307,541.10
101,437.50
289,265.63
Pct.
Unit
Assets
Income
0.5
5.200
1.2 5.300
2.1 6.125
2.9 6.000
2.7 6.140
43,866.56 0.4
3,985,500.90 36.9
155,822.00
155,822.00
1.4 2.980
1.4
Annual Cur.
Income Yield
2,600.00 5.2
6,625.00 5.3
12,250.00 6.1
18,000.00 6.0
6,000.00 6.0
16,885.00 6.1
207,075.92 5.4
10,132.00 6.3
10,132.00 6.3
24,060.74
24,060.74
0.2 0.000
0.00
0.0
228,523.72
228,523.72
2.1 4.044
9,241.50
4.0
252,584.46
252,584.46
2.3
9,241.50
3.7
9,753,646.29
100.0
3.6
10,789,154.30
354,557.84
4
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
SUMMARY OF REALIZED GAINS & LOSSES
AND INCOME & EXPENSES
City of Fayetteville Police Pension Fund
January 1, 2007 to December 31, 2007
TOTAL REALIZED GAINS AND LOSSES 413,642.86
Income and Expenses
Income: Common Stock
88,593.26
Preferred Debt Securities
25895.30
Mutual Funds - Equity
157798.25
Corporate Bonds
22,143.13
Government Bonds
8,789.23
Government Agency
2189379.70
Treasury Bills
25015.62
Alternative Investments
2,533.00
Money Market
115907.70
Expenses: Automated Cash Mgmt.
394.28
Foreign Tax on Dividends
199.61
Northern Trust Fee
53659.64
Management Fee
82,052.04
NET INCOME 2849749.62
L,6
LONGER INVESTMENTS INCORPORATED
A Regisin-ed Investment Advisoi-
Longer Investments Inc.
CONTRIBUTIONS/WITHDRAWALS
City of Fayetteville Police Pension Fund
From 01-01-07 To 12-31-07
Tran Trade Settle
Code Date Date Security
CONTRIBUTIONS
Amount
dp
01-11-07
01-11-07 Money Market
222.18
117,000.00
wd
World Com litigation settlement
02-01-07
dp
01-23-07
01-23-07 Money Market
10.84
03-08-07
Money Market
Peoplesoft litigation settlement
wd
dp
02-01-07
02-01-07 Money Market
465.51
wd
05-01-07
Honeywell Inc. litigation settlement
Money Market
dp
06-07-07
06-07-07 Money Market
12.10
Money Market
35,000.00
First Chicago NBD Corporation class action distribution
07-02-07
dp
07-26-07
07-26-07 Money Market 120,000.00
wd
dp
10-26-07
10-26-07 Money Market
196.26
wd
10-01-07
Cisco Systems litigation distribution
Money Market
120,906.89
WITHDRAWALS
wd
01-01-07
01-01-07
Money Market
117,000.00
wd
02-01-07
02-01-07
Money Market
95,000.00
wd
03-05-07
03-08-07
Money Market
118,000.00
wd
04-01-07
04-01-07
Money Market
107,000.00
wd
05-01-07
05-01-07
Money Market
115,000.00
wd
06-01-07
06-01-07
Money Market
35,000.00
wd
07-02-07
07-02-07
Money Market
103,000.00
wd
09-01-07
09-01-07
Money Market
120,000.00
wd
10-01-07
10-01-07
Money Market
122,000.00
wd
11-01-07
11-01-07
Money Market
85,000.00
1,017,000.00
EXPENSE ACCOUNTS
dp
01-31-07
01-31-07
Automated Cash Mgmt.
48.82
dp
02-28-07
02-28-07
Automated Cash Mgmt.
24.73
dp
03-31-07
03-31-07
Automated Cash Mgmt.
37.43
dp
04-30-07
04-30-07
Automated Cash Mgmt.
12.79
dp
05-31-07
05-31-07
Automated Cash Mgmt.
11.64
dp
06-30-07
06-30-07
Automated Cash Mgmt.
7.06
dp
07-31-07
07-31-07
Automated Cash Mgmt.
21.57
dp
08-31-07
08-31-07
Automated Cash Mgmt.
68.70
dp
09-30-07
09-30-07
Automated Cash Mgmt.
26.48
dp
10-31-07
10-31-07
Automated Cash Mgmt.
28.95
dp
11-30-07
11-30-07
Automated Cash Mgmt.
39.89
dp
12-31-07
12-31-07
Automated Cash Mgmt.
5.06
dp
12-31-07
12-31-07
Automated Cash Mgmt.
61.16
dp
04-13-07
04-13-07
Foreign Tax on Dividends
15.70
dp
06-05-07
06-05-07
Foreign Tax on Dividends
47.60
dp
07-13-07
07-13-07
Foreign Tax on Dividends
15.00
dp
07-27-07
07-27-07
Foreign Tax on Dividends
7.28
dp
08-24-07
08-24-07
Foreign Tax on Dividends
7.28
dp
09-06-07
09-06-07
Foreign Tax on Dividends
51.14
dp
11-29-07
11-29-07
Foreign Tax on Dividends
55.61
dp
01-31-07
01-31-07
Northern Trust Fee
473.34
dp
02-28-07
02-28-07
Northern Trust Fee
456.41
dp
03-30-07
03-30-07
Northern Trust Fee
481.89
dp
04-30-07
04-30-07
Northern Trust Fee
461.99
dp
05-31-07
05-31-07
Northern Trust Fee
483.83
dp
06-29-07
06-29-07
Northern Trust Fee
484.48
dp
07-31-07
07-31-07
Northern Trust Fee
486.49
dp
08-31-07
08-31-07
Northern Trust Fee
455.99
1
Broker
Quantity Code Commission
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
CONTRIBUTIONS/WITHDRAWALS
City of Fayetteville Police Pension Fund
From 01-01-07 To 12-31-07
Tran
Trade
Settle
Management Fee
Broker
Code
Date
Date
Security
Amount Quantity Code Commission
dp
09-28-07
09-28-07
Northern Trust Fee
463.86
dp
10-31-07
10-31-07
Northern Trust Fee
481.33
dp
11-30-07
11-30-07
Northern Trust Fee
478.65
dp
12-31-07
12-31-07
Northern Trust Fee
451.38
6,253.53
AFTER FEE PERFORMANCE EXPENSE ACCOUNTS
dp
01-08-07
01-08-07
Management Fee
20,619.36
dp
04-09-07
04-09-07
Management Fee
20,230.83
dp
07-09-07
07-09-07
Management Fee
20,500.34
dp
10-11-07
10-11-07
Management Fee
20,701.51
82,052.04
PORTFOLIO NET TOTAL -984,398.68
EXPENSE ACCOUNTS PAID BY CLIENT
0.00
AFTER FEE PERFORMANCE EXPENSE
ACCOUNTS PAID BY CLIENT
0.00
GRAND TOTAL
Fa
-984,398.68
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
December 31, 2007
City of Fayetteville Police Pension Fund
113 W. Mountain
Fayetteville, Arkansas 72701
Longer Investments Inc.
STATEMENT OF MANAGEMENT FEES
For The Period Ending December 31, 2007
Portfolio Valuation as of 12-31-07
$ 10,740,938.46
3,000,000 @ 1.000% per annum
7,500.00
3,000,000 @0.750% per annum
51625.00
4,000,000 @0.650% per annum
6,500.00
740,938 @0.500% per annum
926.17
Quarterly Management Fee
$ 20,551.17
TOTAL DUE AND PAYABLE
$ 209551.17
Pursuant to Section 204-3 of the Investment Advisors Act of 1940, Part H of Form ADV is available to all clients of Longer Investments Inc.
This statement may be obtained by submitting a written request to the company. As instructed, the management fee has been billed to the account.
It is the responsibility of the client to verify the accuracy of the fee calculation. The custodian will not determine if the fee is properly calculated.
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Date
Longer Investments Inc.
REALIZED GAINS AND LOSSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Cost
Quantity Security Basis Proceeds
01-03-07
-32
Dell January 25 Calls
2,976.00
01-03-07
900
Schlumberger, LTD
53,253.00
01-04-07
2,500
Chico's FAS Inc.
52,425.50
01-04-07
2,805
ProShares Ultrashort Dow 30
160,628.89
01-05-07
1,450
streetTRACKS Gold Shares
92,116.15
01-05-07
3,000
Powershares Dynamic
49,663.85
Networking
01-09-07
1,775
streetTRACKS Gold Shares
112,762.87
01-19-07
-10
B.P. Amoco PLC January 60
4,671.80
Calls
01-22-07
-5
B.P. Amoco PLC January 60
3,513.56
Calls
01-22-07
500
B.P. Amoco PLC A.D.S.
21,716.67
01-22-07
2,125
Caterpillar Inc.
115,342.03
01-22-07
1,775
streetTRACKS Gold Shares
112,762.87
01-22-07
1,750
Time-Wamer, Inc.
30,205.30
01-25-07
2,250
American International
154,126.45
Group Inc.
01-25-07
875
Schlumberger, LTD
51,773.75
01-26-07
2,150
BB & T Corp.
94,555.28
01-30-07
1,850
Gannett Co., Inc.
107,634.30
02-02-07
3,750
Dell Computer Corporation
87,072.08
02-06-07
575
Avon Products Inc.
19,981.25
02-06-07
250,000
Federal Home Loan Bank
250,000.00
(NC)
5.020% Due 09-14-07
02-08-07
1,000
HSBC Holdings PLC ADS
92,388.00
02-08-07
70,000
U. S. Treasury Note
70,000.00
6.625% Due 05-15-07
02-16-07
1,350
Amgen Inc.
93,790.44
02-22-07
635
International Business
52,932.97
Machines Corp.
02-22-07
5,500
Sara Lee Corp.
95,005.51
02-23-07
950
International Business
79,191.05
Machines Corp.
02-23-07
1,615
J.B. Hunt Transport Services
36,358.16
Inc.
03-01-07
75,000
Morgan Stanley Group Note
74,046.10
AA3/A+ (NC)
6.875% Due 03-01-07
03-01-07
3,200
Par Pharmaceutical
68,378.88
03-01-07
1,850
Barr Pharmaceuticals Inc.
94,628.98
03-01-07
2,050
Electronic Arts Inc.
107,396.55
03-02-07
4,045
Gap, Inc.
79,752.86
03-07-07
2,225
Ceradyne Inc.
120,916.70
03-08-07
985
Diamonds Trust Series I
119,646.08
03-08-07
250.0000
iShares FTSE China Index
26,247.10
Fund
03-09-07
1,000
Diamonds Trust Series I
121,468.10
1
I1�
8,853.72
55,013.86
52,029.39
160,552.98
86,833.63
53,503.35
106,771.66
7,027.11
3,513.56
33,477.63
124,097.67
112,071.65
39,338.78
154,839.12
55,503.30
90,200.47
106,477.91
89,250.63
21,858.29
249,502.50
89,507.44
70,218.75
90,019.69
62,143.95
94,432.08
92,796.94
44,850.23
75,000.00
77,316.01
93,755.1.1
102,136.87
73,612.28
119,658.38
120,939.90
24,702.99
122,744.02
Gain Or Loss
5,877.72
1,760.86
-396.11
-75.91
-5,282.52
3,839.50
-5,991.21
2,355.31
1It
11,760.96
8,755.64
-691.22
9,133.48
712.67
3,729.55
-4,354.81
-1,156.39
2,178.56
1,877.04
-497.50
-2,880.56
218.75
-3,770.75
9,210.98
-573.43
13,605.89
8,492.07
953.90
8,937.13
-873.87
-5,259.68
-6,140.58
-1,258.32
1,293.82
-1,544.11
1,275.92
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
REALIZED GAINS AND LOSSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Cost
Date Quantity Security Basis Proceeds Gain Or Loss
03-14-07
150,000
Federal Home Loan
150,000.00
150,000.00
0.00
Mortgage Corp. (C 3-14-07
@ 100, 1X)
5.100% Due 03-14-08
03-15-07
2,235
Anadarko Petroleum Corp.
81,820.51
88,822.64
7,002.13
03-23-07
1,150
J.B. Hunt Transport Services
25,889.71
31,832.09
5,942.38
Inc.
03-26-07
205
Google
92,005.30
94,883.54
2,878.24
03-28-07
2,600
Powershares Dynamic
46,982.00
46,958.65
-23.35
Networking
03-29-07
1,900
Powershares Dynamic
34,333.00
34,190.35
-142.65
Networking
04-12-07
2,000
Bed Bath & Beyond Inc.
83,566.40
79,784.97
-3,781.43
04-13-07
150
Newell Rubbermaid Inc.
3,778.87
4,574.92
796.05
04-13-07
500
G.E. Preferred 6.10%
12,535.00
12,544.80
9.80
AAA/AAA (C 11-15-07)
04-13-07
2,500
Hain Celestial Group, Inc.
51,478.15
75,504.09
24,025.94
04-16-07
750
Chevron Corp.
33,302.07
57,779.11
24,477.04
04-16-07
350
Peabody Energy Corp
13,631.10
16,738.28
3,107.18
04-17-07
-10
B.P. Amoco PLC April 60
9,651.85
5,916.90
-3,734.95
Calls
04-18-07
775
Johnson & Johnson
47,184.05
49,854.98
2,670.93
04-18-07
1,000
Newmont Mining Corporation
47,329.90
44,480.91
-2,848.99
04-18-07
1,200
Newell Rubbermaid Inc.
30,230.94
36,707.91
6,476.97
04-18-07
850
AT&T
23,198.59
33,052.34
9,853.75
04-19-07
4,810
Powershares Dynamic Oil &
97,465.70
105,120.93
7,655.23
Gas Services
04-20-07
275
Peabody Energy Corp
10,710.15
12,696.20
1,986.05
04-26-07
1,725
Peabody Energy Corp
67,181.85
85,008.59
17,826.74
04-26-07
725
Danaher Corp.
52,243.50
50,959.46
-1,284.04
04-26-07
2,415
Newmont Mining Corporation
114,301.71
102,675.53
-11,626.18
04-30-07
750
US Bancorp
24,051.87
25,875.43
1,823.56
05-07-07
1,150
Newell Rubbermaid Inc.
28,971.31
35,359.66
6,388.35
05-07-07
1,850
Newell Rubbermaid Inc.
46,606.03
56,882.92
10,276.89
05-09-07
-10
B.P. Amoco PLC May 60
9,547.30
9,547.30
0.00
Calls
05-09-07
280
Cameco Corp.
11,017.13
14,167.78
3,150.65
05-09-07
250
G.E. Preferred 6.10%
6,267.50
6,277.40
9.90
AAA/AAA (C 11-15-07)
05-09-07
1,000
B.P. Amoco PLC A.D.S.
55,576.67
69,476.38
13,899.71
05-11-07
3,850
Bristol Myers Squibb
101,652.00
115,305.73
13,653.73
05-11-07
750
Whole Foods Market, Inc.
34,361.10
30,779.30
-3,581.80
05-14-07
1,525
Whole Foods Market, Inc.
69,867.57
60,670.59
-9,196.98
05-30-07
2,325
Yahoo! Inc.
67,087.88
64,959.50
-2,128.38
06-01-07
400
Computer Sciences Corp.
21,342.40
22,442.69
1,100.29
06-01-07
900
Disney Company
23,458.67
31,689.32
8,230.65
06-01-07
750
US Bancorp
24,051.87
25,923.35
1,871.48
06-01-07
2,095
The Technology Select Sec
51,704.60
53,610.22
1,905.62
SPDR Fund
06-07-07
1,500.0000
iShares MSCI Hong Kong
25,815.00
24,449.62
-1,365.38
Index Fund
N
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
REALIZED GAINS AND LOSSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Cost
Date Quantity Security Basis Proceeds Gain Or Loss
06-07-07
315
Bank of America Corp.
14,799.27
15,734.00
934.73
06-12-07
3,250
US Bancorp
104,224.78
110,530.80
6,306.02
06-13-07
2,000
Computer Sciences Corp.
106,712.00
108,858.33
2,146.33
06-15-07
250
G.E. Preferred 6.10%
6,267.50
6,037.40
-230.10
AAA/AAA (C 11-15-07)
06-15-07
950
Coca-Cola
39,806.84
49,147.68
9,340.84
06-15-07
875
Walmart Stores
41,190.98
43,308.51
2,117.53
06-18-07
485
Health Care Select Sector
16,014.06
17,367.58
1,353.52
SPDR Fund
06-19-07
0
Citadel Broadcasting
1.74
2.33
0.59
06-20-07
230
Citadel Broadcasting
1,028.96
1,471.15
442.19
06-20-07
2,175
Best Buy
104,993.12
98,591.23
-6,401.89
06-20-07
525
Western Digital Corp.
10,048.50
10,029.28
-19.22
06-25-07
1,000
Hain Celestial Group, Inc.
20,591.26
28,349.26
7,758.00
06-26-07
195
Devon Energy Corp.
12,935.97
15,001.12
2,065.15
07-01-07
50,000
Cleve Electric/Toledo Ed.
49,543.00
50,000.00
457.00
Aaa/AAA (NC) AMBAC
YTM 7.30%
7.130% Due 07-01-07
07-02-07
150
Devon Energy Corp.
9,950.75
11,800.40
1,849.65
07-02-07
2,150
Norfolk Southern Corp.
114,142.80
115,242.32
1,099.52
07-02-07
900
AT&T
24,563.21
37,324.13
12,760.92
07-02-07
2,300
Western Digital Corp.
44,022.00
45,079.30
1,057.30
07-06-07
4,350
Parametric Technology Corp.
86,902.50
75,439.15
-11,463.35
07-09-07
4,800
Symantec Corp.
95,167.47
93,982.55
-1,184.92
07-10-07
250,000
Federal Home Loan Bank
250,000.00
249,725.00
-275.00
(NC)
5.020% Due 09-14-07
07-10-07
500
G.E. Preferred 6.10%
12,535.00
12,014.81
-520.19
AAA/AAA (C 11-15-07)
07-11-07
500
G.E. Preferred 6.10%
12,535.00
11,974.81
-560.19
AAA/AAA (C 11-15-07)
07-13-07
4,000
Patterson -UTI Energy Inc.
95,642.00
100,129.26
4,487.26
07-13-07
2,775
International Rectifier Corp.
105,738.50
108,033.53
2,295.03
07-17-07
950
Cameco Corp.
37,379.55
44,577.97
7,198.42
07-24-07
600
Wyeth
34,043.10
30,329.77
-3,713.33
07-25-07
1,980
American International
133,848.67
133,964.15
115.48
Group Inc.
07-25-07
2,500
Bank of America Corp.
117,454.50
118,923.67
1,469.17
07-25-07
1,150
Cameco Corp.
45,248.93
48,291.90
3,042.97
07-25-07
550
AT&T
15,010.85
22,130.23
7,119.38
07-25-07
1,435
Time-Wamer, Inc.
25,758.43
28,987.55
3,229.12
07-25-07
1,480
Texas Instruments
44,529.00
54,581.56
10,052.56
07-26-07
1,400
Wyeth
79,433.90
69,717.11
-9,716.79
07-27-07
4,500
Time-Wamer, Inc.
80,775.58
87,748.65
6,973.07
07-30-07
2,225
American Express Co.
130,079.95
131,085.20
1,005.25
07-30-07
575
Goldman Sachs Group Inc.
110,132.34
111,621.26
1,488.92
07-30-07
2,300
Ingersoll-Rand Co. Ltd.
94,602.22
115,398.66
20,796.44
07-30-07
5,100
Powershares Dynamic
96,686.82
96,962.26
275.44
Semiconductors
07-31-07
2,000
Amgen Inc.
114,602.50
108,433.33
-6,169.17
R3
LONGER INVESTMENTS INCORPORATED
1,16 A Registered Investment Advisor
Longer Investments Inc.
REALIZED GAINS AND LOSSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Cost
Date Quantity Security Basis Proceeds Gain Or Loss
07-31-07
2,815
Avon Products Inc.
100,510.75
101,602.49
1,091.74
08-01-07
2,750
Amphenol Corp.
102,274.53
97,548.43
-4,726.10
08-02-07
1,115
Barclays PLC
45,783.13
61,955.81
16,172.68
08-07-07
630
Goldman Sachs Group Inc.
112,151.21
119,652.49
7,501.28
08-07-07
2,000
Petsmart Inc.
64,211.40
61,876.05
-2,335.35
08-07-07
875
Standard & Poors Depository
126,107.89
128,807.03
2,699.14
Receipts
08-09-07
220
Northern Trust Corp.
12,638.02
14,187.54
1,549.52
08-10-07
2,625
Standard & Poors Depository
378,323.66
380,429.38
2,105.72
Receipts
08-10-07
3,210
Financial Select Sector SPDR
109,147.38
106,506.16
-2,641.22
Fund
08-13-07
465
Parker Hannifin Corp.
38,362.82
45,778.21
7,415.39
08-13-07
3,205
Financial Select Sector SPDR
108,977.37
107,858.13
-1,119.24
Fund
08-14-07
2,750
Cameco Corp.
107,625.38
108,180.32
554.94
08-15-07
3,235
Goldcorp Inc.
81,788.89
76,220.61
-5,568.28
08-16-07
675
Emerson Electric
18,210.08
29,614.96
11,404.88
08-16-07
625
Walmart Stores
29,422.13
27,067.77
-2,354.36
08-16-07
1,250
Walmart Stores
58,844.26
54,135.54
-4,708.72
08-17-07
850
Standard & Poors Depository
122,318.66
123,673.10
1,354.45
Receipts
08-20-07
1,850
Standard & Poors Depository
266,222.96
267,609.50
1,386.55
Receipts
08-23-07
310
Diamonds Trust Series I
39,694.91
40,894.79
1,199.88
08-24-07
225,000
Federal Home Loan Bank (C
225,000.00
225,000.00
0.00
8-24-07 @ 100, 1X)
5.520% Due 02-24-10
08-27-07
1,000
Diamonds Trust Series I
128,048.10
133,516.25
5,468.15
09-07-07
1,475
United Parcel Service Inc.
109,137.76
109,074.58
-63.18
09-10-07
375
Diamonds Trust Series 1
49,820.59
49,499.24
-321.35
09-11-07
1,750
Varian Medical Systems Inc.
77,874.48
69,994.72
-7,879.76
09-12-07
1,030
Health Care Select Sector
34,563.20
35,838.30
1,275.10
SPDR Fund
09-12-07
3,070
Health Care Select Sector
103,018.47
106,819.01
3,800.54
SPDR Fund
09-13-07
100
Diamonds Trust Series I
13,285.49
13,442.79
157.30
09-13-07
900
Health Care Select Sector
30,200.85
31,562.51
1,361.66
SPDR Fund
09-13-07
150
St. Jude Medical Inc.
5,831.14
6,896.07
1,064.93
09-17-07
500
Barrick Gold Corp.
15,045.00
18,740.21
3,695.21
09-18-07
2,650
The Technology Select Sec
67,727.16
68,518.67
791.51
SPDR Fund
09-24-07
4,500
Parametric Technology Corp.
80,874.00
73,466.77
-7,407.23
09-25-07
3,885
Lowe's Companies Inc.
110,674.34
111,998.17
1,323.83
09-28-07
540
First Trust Dow Jones
13,378.72
14,007.38
628.66
Internet Index
10-02-07
4,000
First Trust Dow Jones
99,101.66
105,469.98
6,368.32
Internet Index
m
u
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
REALIZED GAINS AND LOSSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Date
Quantity
Security
Cost
Basis
10-03-07
100,000
Fed Nat'l Mortgage Assoc
100,000.00
(Callable 10-3-07 @ 100,
1X)
5.125% Due 10-03-08
10-05-07
2,250
Barrick Gold Corp.
67,702.50
10-10-07
300
Applied Materials Inc.
4,825.41
10-10-07
1,100
The Technology Select Sec
28,113.16
SPDR Fund
10-17-07
3,500
Citigroup
157,176.70
10-17-07
50
Google
25,299.31
10-17-07
1,050
General Electric
33,387.73
10-18-07
800
eBay Inc.
28,361.71
10-18-07
550
Texas Instruments
16,547.94
10-22-07
3,635
Patterson -UTI Energy Inc.
80,930.73
10-23-07
2,400
Texas Instruments
72,209.19
10-24-07
2,300
eBay Inc.
81,539.93
10-24-07
2,970
St. Jude Medical Inc.
115,456.67
10-25-07
1,895
Eli Lilly & Co.
105,448.98
10-25-07
5,000
Symantec Corp.
96,793.45
11-01-07
2,250
Barclays PLC
94,109.71
11-01-07
275
ExxonMobil
15,145.60
11-02-07
1,585
Norfolk Southern Corp.
81,948.94
11-05-07
2,500
Bed Bath & Beyond Inc.
85,179.50
11-05-07
2,575
Cintas Corp.
92,197.10
11-05-07
3,000
Disney Company
77,164.87
11-05-07
50
Google
26,580.29
11-12-07
4,245
Staples, Inc.
93,151.82
11-12-07
1,200
International Business
124,836.80
Machines Corp.
11-12-07
2,500
Standard & Poors Depository
365,327.75
Receipts
11-12-07
1,650
iShares NASDAQ
135,601.13
Biotechnology
11-13-07
1,125
Schlumberger, LTD
107,031.94
11-13-07
1,000
Applied Materials Inc.
16,084.70
11-19-07
2,125
Ingersoll-Rand Co. Ltd.
107,915.58
11-21-07
4,350
Applied Materials Inc.
69,968.45
11-23-07
135,000
Federal Home Loan Bank
135,000.00
(Callable since 11-7-05 @
100, CC)
5.375% Due 11-07-13
11-26-07
1,150
Transocean Inc.
33,418.00
11-27-07
1,850
Standard & Poors Depository
264,087.50
Receipts
11-27-07
8,000
The Technology Select Sec
204,974.68
SPDR Fund
11-27-07
804
Transocean Inc.
77,774.78
12-03-07
4,150
J.B. Hunt Transport Services
100,204.75
Inc.
12-03-07
3,985
Seagate Technology
102,285.26
W1
10
Proceeds
91,213.60
6,074.90
30,469.53
157,322.59
31,326.77
43,001.46
30,515.93
18,714.67
75,979.42
75,856.83
81,188.75
117,313.20
99,727.20
92,084.58
106,731.84
24,593.01
79,137.83
79,623.77
89,098.78
101,504.04
36,251.71
89,482.79
122,701.48
365,745.15
136,509.84
103,108.94
18,309.81
101,849.68
78,186.57
135,000.00
37,984.50
262,130.07
202,738.49
108,801.16
108,484.31
101,409.12
Gain Or Loss
1111111]
23,511.10
1,249.49
2,356.37
145.89
6,027.46
9,613.73
2,154.22
2,166.73
-4,951.31
3,647.64
-351.18
1,856.53
-5,721.78
-4,708.87
12,622.13
9,447.41
-2,811.11
-5,555.73
-3,098.32
24,339.17
9,671.42
-3,669.03
-2,135.32
417.40
908.71
-3,923.00
2,225.11
-6,065.90
8,218.12
0.00
4,566.50
-1,957.43
-2,236.19
31,026.38
8,279.56
-876.14
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
REALIZED GAINS AND LOSSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Date
Quantity
Security
Cost
Basis
Proceeds
Gain Or Loss
12-07-07
100,000
Federal Home Loan Bank
100,000.00
100,000.00
0.00
(Callable since 11-25-05 @
100, CC)
5.000% Due 05-25-11
12-12-07
1,500
Caterpillar Inc.
109,629.15
109,725.12
95.97
12-12-07
1,675
Harley-Davidson, Inc.
81,740.67
76,303.62
-5,437.05
12-12-07
1,400
United Technologies Corp.
108,616.20
108,404.82
-211.38
12-17-07
5,135
Symantec Corp.
93,737.88
84,613.74
-9,124.14
12-21-07
1,450
Financial Select Sector SPDR
42,962.76
42,107.21
-855.55
Fund
12-26-07
350,000
Federal Home Loan Bank
350,000.00
350,000.00
0.00
(Callable 12-26-07 @ 100,
1X)
5.100% Due 12-26-08
12-31-07
1
Transocean Inc.
52.24
79.35
27.11
TOTAL GAINS
637,172.33
TOTAL LOSSES
-223,529.47
14,575,189.71
14,988,832.57
413,642.86
NO CAPITAL GAINS DISTRIBUTIONS
This realized gain/loss report has been prepared using cost basis and acquisition date information provided by third parties. While every effort has been made to verify the
accuracy of this information, it is not possible to unconditionally confirm that it is correct. Longer Investments Inc. can only attest to the accuracy of transactions that were
executed under its direction.
M
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Security
Ex -Date Pay -Date
Common Stock
AT&T
11-07-07 11-30-07
01-08-07
02-01-07
04-05-07
05-01-07
07-06-07
08-01-07
10-05-07
11-01-07
Amount
1,757.25
1,757.25
1,13 6.00
940.75
5,591.25
Allergan Inc.
03-08-07
11-07-07 11-30-07
96.25
American Express Co.
339.00
07-03-07 08-10-07
i
333.75
1 American International Group Inc.
11-13-07
05-30-07 06-15-07
326.70
Amphenol Corp.p
09-10-07 10-03-07
33.90
12-10-07 01-02-08
42.90
76.80
Anadarko Petroleum Corp.
03-12-07 03-28-07 201.15
Applied Materials Inc.
02-13-07
03-08-07
282.50
05-15-07
06-07-07
339.00
08-14-07
09-06-07
339.00
11-13-07
12-06-07
321.00
1,281.50
Archer -Daniels -Midland Co.
11-20-07 12-06-07 316.25
Avon Products Inc.
02-13-07 03-01-07 370.00
05-16-07 06-01-07 370.00
1
740.00
ILLONGER INVESTMENTS INCORPORATED
IA A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Security
Ex -Date Pay -Date Amount
B.P. Amoco PLC A.D.S.
02-21-07 03-12-07 619.50
08-08-07 09-04-07 649.50
12-03-07 12-03-07 649.50
BB & T Corp.
01-10-07 02-01-07
Bank of America Corp.
:j 02-28-07 03-23-07
05-30-07 06-22-07
Barclays PLC
04-27-07 04-27-07
10-01-07 10-01-07
Bristol Myers Squibb
04-03-07 05-01-07
Cameco Corp.
03-28-07 04-13-07
06-27-07 07-13-07
Caterpillar Inc.
01-18-07 02-20-07
Chevron Corp.
02-14-07
03-12-07
05-16-07
06-11-07
08-15-07
09-10-07
11-14-07
12-10-07
Citigroup
02-01-07 02-23-07
05-03-07 05-25-07
2
1,918.50
1,576.40
1,576.40
3,152.80
5,107.32
1,857.10
6,964.42
1,078.00
104.65
100.00
204.65
637.50
1,43 0.00
1,160.00
1,160.00
1,160.00
►' 111'
1,890.00
1,890.00
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Diamonds Trust Series I
08-17-07 09-17-07 373.55
Dow Chemical Co.
12-27-07 01-30-08 1,050.00
Emerson Electric
02-14-07
Security
761.25
Ex -Date
Pay -Date
Amount
08-02-07
08-24-07
1,890.00
11-14-07
12-10-07
5,670.00
Coca-Cola
03-13-07
04-01-07
1,173.00
06-13-07
07-01-07
1,173.00
09-12-07
10-01-07
850.00
11-28-07
12-15-07
850.00
4,046.00
Devon Energy Corp.
03-13-07
03-30-07
226.80
06-13-07
06-29-07
226.80
09-12-07
09-28-07
178.50
12-12-07
12-28-07
178.50
Diamonds Trust Series I
08-17-07 09-17-07 373.55
Dow Chemical Co.
12-27-07 01-30-08 1,050.00
Emerson Electric
02-14-07
03-09-07
761.25
05-09-07
06-11-07
761.25
08-15-07
09-10-07
761.25
11-14-07
12-10-07
667.50
2,951.25
ExxonMobil
02-07-07 03-09-07 480.00
05-10-07 06-11-07 630.00
08-09-07 09-10-07 630.00
11-07-07 12-10-07 533.75
Financial Select Sector SPDR Fund
12-21-07 01-03-08
General Electric
3
2,273.75
2,353.41
LONGER INVESTMENTS INCORPORATED
ih A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Ex -Date Pay -Date
02-22-07 04-25-07
06-21-07 07-25-07
09-20-07 10-25-07
12-20-07 01-25-08
Goldcorp Inc.
07-18-07 07-27-07
08-15-07 08-24-07
Goldman Sachs Group Inc.
07-27-07 08-30-07
Amount
1,778.00
1,778.00
1,778.00
1,802.65
7,136.65
48.53
48.53
97.06
201.25
j Health Care Select Sector SPDR Fund
03-16-07 03-28-07
433.43
06-15-07 06-27-07
818.63
12-21-07 01-03-08
586.53
1,838.59
Ingersoll-Rand Co. Ltd.
( 02-14-07 03-01-07
414.00
05-11-07 06-01-07
414.00
11-08-07 12-03-07
382.50
1,210.50
Intel Corp.
02-05-07 03-01-07
675.00
05-03-07 06-01-07
675.00
08-03-07 09-01-07
675.00
11-05-07 12-01-07
675.00
2,700.00
International Business Machines Corp.
02-07-07 03-10-07
475.50
08-08-07 09-10-07
440.00
11-07-07 12-10-07
480.00
J.B. Hunt Transport Services Inc.
4
1,395.50
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
1,479.60
Johnson & Johnson
02-23-07 03-13-07 909.38
05-24-07 06-12-07 684.75
08-24-07 09-11-07 788.50
11-23-07 12-11-07 1,099.75
3A82.38
Kraft Foods Inc.
06-26-07 07-06-07 787.50
09-06-07 10-05-07 1,053.00
12-21-07 01-04-08 1,053.00
2,893.50
Microsoft Corp.
11-13-07 12-13-07 495.00
Newell Rubbermaid Inc.
02-26-07 03-15-07 913.50
Newmont Mining Corporation
03-05-07 03-29-07 341.50
Norfolk Southern Corp.
05-02-07 06-11-07 330.00
Northern Trust Corp.
03-07-07
Security
555.00
Ex -Date
Pay -Date
Amount
02-05-07
02-21-07
505.35
05-09-07
05-29-07
256.50
07-31-07
08-17-07
344.25
11-13-07
11-29-07
373.50
1,479.60
Johnson & Johnson
02-23-07 03-13-07 909.38
05-24-07 06-12-07 684.75
08-24-07 09-11-07 788.50
11-23-07 12-11-07 1,099.75
3A82.38
Kraft Foods Inc.
06-26-07 07-06-07 787.50
09-06-07 10-05-07 1,053.00
12-21-07 01-04-08 1,053.00
2,893.50
Microsoft Corp.
11-13-07 12-13-07 495.00
Newell Rubbermaid Inc.
02-26-07 03-15-07 913.50
Newmont Mining Corporation
03-05-07 03-29-07 341.50
Norfolk Southern Corp.
05-02-07 06-11-07 330.00
Northern Trust Corp.
03-07-07
04-02-07
555.00
06-06-07
07-02-07
555.00
09-06-07
10-01-07
500.00
12-06-07
01-02-08
560.00
Parker Hannifin Corp.
02-13-07 03-02-07
05-15-07 06-01-07
5
L1,6
2,170.00
331.50
331.50
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Security
Ex -Date Pay -Date
Amount
08-23-07 09-07-07
255.15
11-13-07 11-30-07
255.15
12-21-07 12-31-07
1,173.30
Patterson -UTI Energy Inc.
06-12-07 06-29-07
411.00
09-10-07 09-28-07
436.20
Peabody Energy Corp
04-25-07 05-18-07 103.50
Powershares Water Resource
03-16-07 03-30-07
145.61
06-15-07 06-29-07
241.57
09-21-07 09-28-07
105.11
12-21-07 12-31-07
139.54
Texas Instruments
01-29-07 02-12-07
631.83
Procter & Gamble
354.40
10-17-07 11-15-07
665.00
Seagate Technology
10-31-07 11-16-07
398.50
Teva Pharmaceuticals
06-05-07 06-05-07
297.48
09-06-07 09-06-07
319.64
11-29-07 11-29-07
337.01
954.13
Texas Instruments
01-29-07 02-12-07
148.00
04-26-07 05-21-07
354.40
07-27-07 08-20-07
236.00
The Technology Select Sec SPDR Fund
06-15-07 06-27-07
0
FAMEA
11.51
LONGER INVESTMENTS INCORPORATED
AAL A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Security
Ex -Date Pay -Date
Amount
09-21-07 10-03-07
105.10
08-15-07 09-04-07
116.61
Time -Warner, Inc.
814.00
( 02-26-07 03-15-07
239.25
05-29-07 06-15-07
326.43
565.68
US Bancorp
03-28-07 04-16-07 1,900.00
United Parcel Service Inc.
09-06-07 09-17-07 619.50
Verizon Communications
07-06-07 08-01-07 1,012.50
10-05-07 11-01-07 1,075.00
2,087.50
Walmart Stores
03-14-07 04-02-07
605.00
05-16-07 06-04-07
605.00
08-15-07 09-04-07
412.50
12-12-07 01-02-08
814.00
2,436.50
Whole Foods Market, Inc.
04-11-07 04-24-07
409.50
Common Stock Total 88,593.26
Preferred Debt Securities
G.E. Preferred 6.10% AAA/AAA (C 11-15-07)
02-12-07 02-15-07 762.50
05-10-07 05-15-07 476.56
1,23 9.06
G.E. Preferred 6.625% AAA/AAA (C 6-28-07)
03-23-07 03-28-07 414.06
7
LONGER INVESTMENTS INCORPORATED
A Registered blvestment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Ex -Date Pay -Date
Amount
06-25-07 06-28-07 414.06
09-25-07 09-28-07 414.06
12-24-07 12-28-07 414.06
1,656.24
Preferred Debt Securit Total 2,895.30
Mutual Funds -Equity
Japan Smaller Capitalization Fund Inc.
- 12-26-07 01-15-08
12.60
Thai Fund Inc.
12-19-07 01-31-08
264.38
iShares MSCI Hong Kong Index Fund
12-24-07 01-04-08
293.96
iShares MSCI Japan Index Fund
12-24-07 01-04-08
2,767.80
iShares MSCI Taiwan Index Fund
12-24-07 01-04-08 709.93
iShares S&P Europe 350 Index
12-24-07 01-04-08 11,749.58
Mutual Funds -Equity Total 15,798.25
Corporate Bonds
Cleve Electric/Toledo Ed. Aaa/AAA 7.130% Due 07-01-07
(NC) AMBAC YTM 7.30%
01-01-07 01-01-07 1,782.50
07-01-07 07-01-07 1,782.50
3,565.00
McDonald's Corp A3/A (NC) 6.21% 6.000% Due 04-15-11
YTM
04-15-07 04-15-07 3,000.00
1.3
LONGER INVESTMENTS INCORPORATED
&A A Registered Inveshnent Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Security
Ex -Date Pay -Date Amount
10-15-07 10-15-07 3,000.00
6,000.00
Morgan Stanley Group Note 6.875% Due 03-01-07
AA3/A+ (NC)
03-01-07 03-01-07 2,578.13
Wells Fargo & Co. AA2/AA (NC) 6.250% Due 04-15-08
04-15-07 04-15-07 5,000.00
10-15-07 10-15-07 5,000.00
10,000.00
Corporate Bonds Total 22,143.13
Government Bonds
U. S. Treasury Note 6.625% Due 05-15-07
02-08-07 02-09-07 1,101.73
U. S. Treasury Note 5.125% Due 05-15-16
05-15-07 05-15-07 3,843.75
11-15-07 11-15-07 3,843.75
7,687.50
Government Bonds Total 8,789.23
Government Agency
Fed Nat'l Mortgage Assoc (Callable 6.000% Due 10-24-16
10-24-08 @ 100, quarterly)
04-24-07 04-24-07 3,000.00
10-24-07 10-24-07 3,000.00
Fed Nat'l Mortgage Assoc (Callable 5.125% Due 10-03-08
10-3-07 @ 100, IX)
04-03-07 04-03-07 2,562.50
10-03-07 10-03-07 2,562.50
5,125.00
6
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Ex -Date Pay -Date
Amount
:j Fed Nat'l Mortgage Assoc (Callable
5.400% Due 09-15-11
9-15-08 @ 100, 1X)
03-15-07 03-15-07
2,700.00
09-15-07 09-15-07
2,700.00
5,400.00
Federal Farm Credit Bank (Callable
5.080% Due 10-13-11
10-13-09 @ 100, CC)
04-13-07 04-13-07
2,540.00
10-13-07 10-13-07
2,540.00
5,080.00
Federal Farm Credit Bank (Callable
5.200% Due 11-06-13
since 11-6-06 @ 100, CC)
05-06-07 05-06-07
1,300.00
11-06-07 11-06-07
1,3 00.00
2,600.00
Federal Farm Credit Bank (Callable
5.300% Due 06-22-15
since 6-22-07 @ 100, CC)
06-22-07 06-22-07
3,312.50
12-22-07 12-22-07
3,312.50
6,625.00
r
Federal Farm Credit Bank (NC) 6.750% Due 07-07-09
01-07-07 01-07-07
3,375.00
07-07-07 07-07-07
3,375.00
6,750.00
Federal Farm Credit Bank (NC) 5.400% Due 02-11-09
5.31 % YTM
02-11-07 02-11-07
08-11-07 08-11-07
Federal Farm Credit Bank (NC) 6.125% Due 12-29-15
6.127% YTM
06-29-07 06-29-07
12-29-07 12-29-07
10
2,700.00
2,700.00
5,400.00
6,125.00
6,125.00
12,250.00
LONGER INVESTMENTS INCORPORATED
A Registered Invesfinmt Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Security
Ex -Date Pay -Date Amount
Federal Farm Credit Bureau (NC) 5.200% Due 12-10-08
06-10-07 06-10-07 1,950.00
12-10-07 12-10-07 1,950.00
Federal Home Loan Bank (NC) 6.000% Due 05-13-11
05-15-07 05-15-07 1,500.00
11-15-07 11-15-07 1,500.00
3,000.00
Federal Home Loan Bank (C 5.520% Due 02-24-10
8-24-07 @ 100, 1X)
02-24-07 02-24-07 6,210.00
08-24-07 08-24-07 6,210.00
12,420.00
Federal Home Loan Bank (Callable 5.000% Due 10-01-12
10-1-10 @ 100, 1X)
10-03-07 10-03-07 -27.78
Federal Home Loan Bank (Callable 5.250% Due 11-14-12
11-14-08 @ 100, 1X)
05-14-07 05-14-07 6,562.50
11-14-07 11-14-07 61562.50
13,125.00
Federal Home Loan Bank (Callable 5.020% Due 06-12-12
12-12-08 @ 100, 1X)
06-12-07 06-12-07 6,275.00
12-12-07 12-12-07 6,275.00
12,550.00
i
Federal Home Loan Bank (Callable 5.100% Due 12-26-08
12-26-07 @ 100, IX)
06-26-07 06-26-07 8,925.00
12-26-07 12-26-07 8,925.00
11
17,850.00
LONGER INVESTMENTS INCORPORATED
AWL A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Security
Ex -Date Pay -Date Amount
Federal Home Loan Bank (Callable 5.250% Due 02-09-11
2-9-09 @ 100, 1 X)
08-09-07 08-09-07 8,400.00
Federal Home Loan Bank (Callable 5.020% Due 04-13-11
4-13-09 @ 100, 1X)
10-13-07 10-13-07 1,631.50
Federal Home Loan Bank (Callable 5.100% Due 11-20-09
5-20-08 @ 100, 1X)
05-20-07 05-20-07 6,375.00
11-20-07 11-20-07 6,375.00
12,750.00
Federal Home Loan Bank (Callable 5.080% Due 10-03-12
since 10-3-03 @ 100, CC)
04-03-07 04-03-07 1,058.33
10-03-07 10-03-07 L058.33
2,116.66
Federal Home Loan Bank (Callable 5.000% Due 10-05-12
since 10-5-07 @ 100, CC)
04-05-07 04-05-07 6,250.00
10-05-07 10-05-07 6,250.00
12,500.00
Federal Home Loan Bank (Callable 5.000% Due 05-25-11
since 11-25-05 @ 100, CC)
05-25-07 05-25-07 2,500.00
11-25-07 11-25-07 2,500.00
12-07-07 12-07-07 166.67
5,166.67
Federal Home Loan Bank (Callable 5.375% Due 11-07-13
since 11-7-05 @ 100, CC)
05-07-07 05-07-07 3,628.13
11-07-07 11-07-07 3,628.13
11-23-07 11-23-07 322.50
12
7,578.76
LONGER INVESTMENTS INCORPORATED
Lh R Registered Investmait Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Secu
Ex -Date Pay -Date
Amount
Federal Home Loan Bank (Callable 5.050% Due 02-20-13
since 2-20-04 @ 100, CC)
02-20-07 02-20-07 1,262.50
08-20-07 08-20-07 1,262.50
2,525.00
Federal Home Loan Bank (NC) 5.250% Due 11-14-08
OS -15-07 OS -15-07 3,937.50
11-15-07 11-15-07 3,937.50
7,875.00
Federal Home Loan Bank (NC) 5.250% Due 02-13-09
02-15-07 02-15-07 1,312.50
08-15-07 08-15-07 1,312.50
2,625.00
Federal Home Loan Bank (NC) 5.020% Due 09-14-07
02-06-07 02-07-07 4,985.14
03-14-07 03-14-07 6,275.00
07-10-07 07-11-07 4,078.75
15,338.89
Federal Home Loan Mortgage Corp. 5.100% Due 03-14-08
(C 3-14-07 @ 100, 1X)
03-14-07 03-14-07 3,825.00
Federal Home Loan Mortgage Corp. 6.000% Due 04-28-16
(Callable 4-28-09 @ 100, quarterly)
04-28-07 04-28-07 9,000.00
10-28-07 10-28-07 9,000.00
18,000.00
Government Agency Total 218,379.70
Treasury Bills
U. S. Treasury Bill Due 12-6-07 3.85% YTM
12-06-07 12-06-07 1,155.00
U. S. Treasury Bill Due 9-27-07 4.684% YTM
13
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Ex -Date Pay -Date
09-27-07 09-27-07
Treasury Bills Total
Alternative Investments
Market Vectors Gold Miners
12-24-07
12-31-07
Cash and
Equivalents
Money Market
01-31-07
01-31-07
02-28-07
02-28-07
03-31-07
03-31-07
04-30-07
04-30-07
05-31-07
05-31-07
06-30-07
06-30-07
07-31-07
07-31-07
08-31-07
08-31-07
09-30-07
09-30-07
10-31-07
10-31-07
11-30-07
11-30-07
12-31-07
12-31-07
12-31-07
12-31-07
EXPENSE ACCOUNTS
Automated Cash Mgmt.
01-31-07 01-31-07
02-28-07 02-28-07
03-31-07 03-31-07
04-30-07 04-30-07
05-31-07 05-31-07
06-30-07 06-30-07
07-31-07 07-31-07
08-31-07 08-31-07
09-30-07 09-30-07
14
Amount
2,015.62
2,533.00
1,552.85
786.77
1,195.56
402.08
366.69
221.61
679.98
2,159.66
827.64
848.00
1,111.01
138.62
1,617.23
11,907.70
48.82
24.73
37.43
12.79
11.64
7.06
21.57
68.70
26.48
LONGER INVESTMENTS INCORPORATED
IAO A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Ex -Date
Pay -Date
Amount
10-31-07
10-31-07
28.95
11-30-07
11-30-07
39.89
12-31-07
12-31-07
5.06
12-31-07
12-31-07
61.16
394.28
Foreign Tax on Dividends
04-13-07
04-13-07
15.70
06-05-07
06-05-07
47.60
07-13-07
07-13-07
15.00
07-27-07
07-27-07
7.28
08-24-07
08-24-07
7.28
09-06-07
09-06-07
51.14
11-29-07
11-29-07
55.61
199.61
Northern Trust Fee
01-31-07
01-31-07
473.34
02-28-07
02-28-07
456.41
03-30-07
03-30-07
481.89
04-30-07
04-30-07
461.99
05-31-07
05-31-07
483.83
06-29-07
06-29-07
484.48
07-31-07
07-31-07
486.49
08-31-07
08-31-07
455.99
09-28-07
09-28-07
463.86
10-31-07
10-31-07
481.33
11-30-07
11-30-07
478.65
12-31-07
12-31-07
451.38
5,659.64
EXPENSE ACCOUNTS Total 6,253.53
MANAGEMENT FEES
Management Fee
01-08-07 01-08-07
04-09-07 04-09-07
07-09-07 07-09-07
M,
20,619.36
20,230.83
20,500.34
LONGER INVESTMENTS INCORPORATED
lh A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Security
Ex -Date Pay -Date Amount
10-11-07 10-11-07 20,701.51
82,052.04
NET INCOME 284,749.62
16
LUNGER INVEST MEN IS INC;URPURAI EU
A Registered Investment Advisor
COMMENTS
AND OUTLOOKS FROM LONGER INVESTMENTS INCORPORATED
The world of asset management is never boring
Since midyear, we have seen even more than the
normal level ofvolatility and turmoil. The subprime
credit crunch continues to unfold. In this newslet-
ter, we will profile the changes that have taken place
since midyear, and we'll attempt a forecast for 2008.
Federal Reserve Policy
The Federal Reserve's response to the subprime
meltdown has been to open the money spigot. This
began in August with a 50 -basis -point discount rate
cut. That was followed in September by another
50 -basis -point discount and Fed funds rate cut.
Since September, the Fed has cut both the funds and
the discount rates by another 50 basis points. In
addition, the Fed is aggressively adding reserves to
the banking system to increase liquidity. In Decem-
ber, the Fed began a series of auctions that widen
the time window for its loans to banks and expand
the collateral that can be pledged for Fed loans.
This deliberate policy was intended to encourage
liquidity throughout the banking system and to
alleviate year-end credit tightness.
As a result of these Fed moves and the
weakening of economic growth since the third
quarter, interest rates have declined across the
maturityspectrum. (See TableA.)
Table A
U.S. Treasury Yield Curve
Maturity
12/31/06
06/12/07
12/26/07
Fed Funds
5.25%
5.25%
4.25%
Two -Year
4.76%
5.07%
3.30%
Five -Year
4.64%
5.15%
3.70%
10 -Year
4.65%
5.25%
4.28%
30 -Year
4.74%
5.36%
4.68%
Although third-quarter real gross domestic
product (GDP) growth was a robust 4.9%, fourth-
quarter growth is expected to be 0.0% to 1.5%.
Estimates for 2008 growth have also come down as
the mortgage trouble continues and the contagion
spreads. We expect a Fed funds rate cut of 25 basis
January 3, 2008
points in January, to a level of 4%. By midyear, we
predict a Fed funds target of 3.5%.
In bond portfolios, we remain conservatively
postured. New investments are focused in the short
maturities (less than three years). Recent inflation
numbers reflect some troubling price pressures from
rising food and energy costs. The dollar has
weakened since the summer (which increased the
price of imports), so this inflation trend still bears
watching. The Treasury market has benefited from
the predictable "flight to quality" that takes place
whenever investors are worried about corporate
credit, as they have beenilately. In light of recent
inflation data, we think that the 4.28% yield on the
10 -year Treasury is too low. We believe the yield is
likely to increase as stability returns to credit .
markets and the flight to quality abates.
We have always been conservative about the
quality of the credit instruments we purchase for
bond portfolios. For taxable accounts, we carefully
research the credit ratings of municipal bonds —
regardless of their insurance coverage. We deter-
mine the soundness of the issuing municipality,
county, state, school district, etc., before we
purchase bonds for the accounts we manage. We
have never put much faith in the Municipal Bond
Insurance Association (MBIA), the American
Municipal Bond Assurance Corporation (Ambac),
the Financial Guaranty Insurance Company (FGIC),
or other municipal bond insurers. We think many
insurers lack adequate capital to cover the value of
the bonds they insure. In the wake of the subprime
crisis, more questions have been raised about the
exposure these insurers have to various illiquid,
poor -quality credit instruments. The prices of the
insurers' own stocks have fallen, and skepticism has
increased regarding the soundness of their "guaran-
tee." Their stocks fell even further in late December
on the news that billionaire Warren Buffet plans to
start his own company to insure municipal debt.
(See Charts I and 2 on page 2.)
This change in the landscape is significant for
municipal bond investments as we head into 2008.
One insurer, ACA Capital Holdings, Inc., recently
LONGER INVESTMENTS INCORPORATED
saw its credit rating reduced to junk status. Some
municipal bonds — those issued by hospitals and
airport authorities, for instance — have no credit
ratings of their own. They are routinely rated
according to the insurance coverage they carry.
Any investor who bought bonds solely because
they had a solid rating based upon ACA insurance,
however, ended up owning junk bonds.
.y1ifTF
Chart 2
Wx
MMMl���i��
. •ail. rem
Chart 2
Source: BigCharts.com
Although the larger insurers — MBIA, Ambac,
and FGIC — have not yet faced downgrades, they
have been put on the rating agencies' "watch list"
for negative outcomes. • There is more of this story
to be written in 2008. But the point for Longer
Investments clients is that the underlying credit
ratings on the tax-free bonds we own are rated A or
better, regardless of their insurance.
When we buy bonds for tax-deferred accounts
and short -maturity bonds for taxable accounts, we
purchase government agency debt, Treasury debt,
and corporate debt rated.A or better.
When we use a money market fund, we have
always chosen to put client assets in government
funds. At times, we hold substantial cash reserves.
The yield difference between government funds
H
and other money market funds is not significant
enough to leave the safety of government securities.
Some money market funds (especially ones that hold
corporate obligations and asset-backed commercial
paper) have faced liquidity problems, but our clients
have no exposure to the corporate commercial paper
market.
The credit markets will continue to react to news
and policymakers' initiatives as we head into 2008.
At this point, it is most important to play defense,
both in credit quality and in duration (the price risk in
bonds due to length of time to maturity) until the
outlook clears.
Equity Market
When 2007 began, we wrote that we expected
stocks to -outperform bonds. We said: "the stock
market in 2007 could conservatively deliver high -
single -digit to low -double-digit returns." We also
favored internationally exposed large -capitalization
stocks over small- or mid -cap stocks. Our
weightings have emphasized the energy, capital
goods, and technology sectors. We have been
underweight in the financial and consumer sectors.
Index returns for the year are detailed in Table B.
Table B
Stock Market Returns
1/1/07 throul
12/26/07
S&P 500 (cash basis) 5.6%
S&P 500 (incl. dividends) 7.6%
Russell 2000 1.2%
NASDAQ 12.8%
DJIA (cash basis) 8.7%
EAFE* (cash basis) 7.9%
'Europe, Australasia, Far East Index
The market, as shown by the S&P 500
(Standard & Poor's 500), NASDAQ (National
Association of Securities Dealers Automated
Quotation system) index, and the DJIA (Dow Jones
Industrial Average), did achieve our January. predic-
tions. Small -cap stocks (as measured by the Russell
2000) underperformed their large -cap brethren by a
significant amount.
Our underweight position in financial stocks in
2007 and our overweight position in technology, plus
Wx
Source: BigCharts.com
Although the larger insurers — MBIA, Ambac,
and FGIC — have not yet faced downgrades, they
have been put on the rating agencies' "watch list"
for negative outcomes. • There is more of this story
to be written in 2008. But the point for Longer
Investments clients is that the underlying credit
ratings on the tax-free bonds we own are rated A or
better, regardless of their insurance.
When we buy bonds for tax-deferred accounts
and short -maturity bonds for taxable accounts, we
purchase government agency debt, Treasury debt,
and corporate debt rated.A or better.
When we use a money market fund, we have
always chosen to put client assets in government
funds. At times, we hold substantial cash reserves.
The yield difference between government funds
H
and other money market funds is not significant
enough to leave the safety of government securities.
Some money market funds (especially ones that hold
corporate obligations and asset-backed commercial
paper) have faced liquidity problems, but our clients
have no exposure to the corporate commercial paper
market.
The credit markets will continue to react to news
and policymakers' initiatives as we head into 2008.
At this point, it is most important to play defense,
both in credit quality and in duration (the price risk in
bonds due to length of time to maturity) until the
outlook clears.
Equity Market
When 2007 began, we wrote that we expected
stocks to -outperform bonds. We said: "the stock
market in 2007 could conservatively deliver high -
single -digit to low -double-digit returns." We also
favored internationally exposed large -capitalization
stocks over small- or mid -cap stocks. Our
weightings have emphasized the energy, capital
goods, and technology sectors. We have been
underweight in the financial and consumer sectors.
Index returns for the year are detailed in Table B.
Table B
Stock Market Returns
1/1/07 throul
12/26/07
S&P 500 (cash basis) 5.6%
S&P 500 (incl. dividends) 7.6%
Russell 2000 1.2%
NASDAQ 12.8%
DJIA (cash basis) 8.7%
EAFE* (cash basis) 7.9%
'Europe, Australasia, Far East Index
The market, as shown by the S&P 500
(Standard & Poor's 500), NASDAQ (National
Association of Securities Dealers Automated
Quotation system) index, and the DJIA (Dow Jones
Industrial Average), did achieve our January. predic-
tions. Small -cap stocks (as measured by the Russell
2000) underperformed their large -cap brethren by a
significant amount.
Our underweight position in financial stocks in
2007 and our overweight position in technology, plus
r
LONGER INVESTMENTS INCORPORATED
our emphasis on large -cap stocks contributed to our
success in 2007. Longer Investments equity
portfolios significantly beat the market averages.
Where do we go from here? We continue to
emphasize large -cap stocks, believing that they are
best positioned for trade abroad where economic
growth is stronger than it is in the United States.
Large -cap stocks are also dollar -decline beneficia-
ries: The dollar's weakness makes the price of their
goods more competitive in international markets.
Further, large -cap stocks are good defensive
instruments because in uncertain times, they tend to
attract more capital than small -cap stocks do. We
continue to prefer the large, well-positioned U.S.
corporations that display improving sales, earnings,
profitability trends, and strong balance sheets, so
long as they are reasonably valued according to our
models.
We remain underweight in financial stocks and
consumer stocks because we believe that the
mortgage crisis is in only the third or fourth inning
of a nine -inning game. We added a few financial
positions that are judged to be cheap and .of good
quality. But we have less than half the exposure to
financial stocks that the S&P 500 does. Our
overweighted sectors continue to be technology
and capital goods.
Earnings on the S&P 500 for 2007 were pro-
jected to be $95 per share at the end of 2007. With
the S&P 500 at 1497.66 on Dec. 26, 2007, the
price/earnings (P/E) multiple for the market was
16 times earnings at the close of the year. This is in
line with the long -run historical average of 15 times
earnings and low compared with the I 0 -year
Treasury note yield of 4.28%. Although earnings
were expected to fall by 4% in the fourth quarter of
2007, they are expected to rise by 6% in 2008.
If short-term interest rates decline in 2008
(because the Fed continues to cut the funds rate),
we could see an increase in the P/E, or valuation, of
the market, even as earnings growth slows. That
would deliver a positive return in 2008. As we move
forward into 2008, our conclusions and projections
are similar to last year's. Namely:
• Stocks should outperform bonds as the
financial asset of choice.
• Bond interest rates (returns) will remain low
compared with expected returns on stocks.
• The U.S. stock market should deliver high -
single -digit to low -double-digit returns (barring
the disruptive forces detailed here under
"Risks.")
• Large -capitalization stocks should outperform
small- and mid -capitalization stocks.
• Financial and consumer stocks may be tradable
at times, but should remain underweight in our
portfolios.
Finally, we'll stick our necks out and say that
the U.S. market should outperform foreign markets in
2008. The S&P 500 is down 9% year-to-date in euro
terms. The dollar's decline against the euro has
more than offset the positive return of the S&P 500
to a foreign investor. If we achieve any stability in
the dollar exchange rate in 2008, the S&P 500 will
again represent an attractive asset to foreign
investors.
Risks
Time and space do not permit us to list all the
risks to our optimistic outlook for returns in 2008, as
they are many. The subprime and credit crises are
still spreading. Home prices continue to fall. The
full impact of bad -credit write-offs on the balance
sheets of financial institutions is still unknown. At
this time, it is impossible to ascertain the extent of
the damage that could be caused by further defaults
and foreclosures in 2008. We know that government
officials and Fed policymakers are fighting to keep
the damage from spreading. (See Table C.) Un-
doubtedly, economic growth will slow in 2008, as we
work through the deflationary impact of the housing
crisis. The big question is whether it can be
contained or whether the U.S. economy will move
into a recession.
Table C
Recent Policy Action
• Discount rate cut: 150 basis points
• Fed funds rate cut: 100 basis points -
• New liquidity facility
• Swap lines/dollar illiquidity facility with
European Central Bank and Swiss Central
Bank
• Paulson super -SIV (structured investment
vehicle) plan (later discarded)
• Asset-backed commercial paper and
mortgage-backed securities accepted at the
discount window
f
LONGER INVESTMENTS INCORPORATED
• Paulson interest rate freeze program for
subprime mortgage holders
• Bank of England and Bank of Canada
eased interest rates
• Fed, Bank of Canada, Bank of England, and
European Central Bank injected liquidity
• FHA to lend to subprime borrowers
• Greenspan calls for Federal action
Source: 1S1 Group
Even a recession will not disrupt this scenario,
if the recession is neither deep nor prolonged. A
slight slowdown that only marginally hurts the
earnings outlook would also be attended by a drop
in interest rates and an expansion in P/E multiples, or
valuation. In such a scenario, a positive return for
stocks is possible, as it was in the 1991 recession,
when the S&P 500 return was 26.3%. On the other
hand, a prolonged, deep recession (not predicted by
the economic numbers at this time), would result in a
reduction in the earnings outlook significant enough
to offset P/E multiple expansion.
Besides the risk of recession, there are other
risks. These include a freezing up of credit markets
as they struggle with the subprime debt, a disorderly
decline in property values due to more foreclosures,
policy mistakes by overzealous government officials
(well-intentioned political patches that inadvertently
tum into speed bumps in the financial markets), a
spike in inflation and interest rates, and a further
acceleration in the decline of the dollar. Next year is
an election year, and election years often mean
uncertainty for tax policy, trade policy, and regula-
tion. We will write more about the political environ-
ment as 2008 progresses.
It is my pleasure to inform you that this is our
worry list; it need not be yours. 'These are just a few
of the variables that go into the equations we use to
The information provided herein is illustrative only.
It should not be construed as a formal recommendation
by Longer Investments Inc.
ISI
value the markets, and we monitor all variables
vigilantly in today's financial world. A significant
change in any one of them could bring about a less
optimistic outlook; in which case we would adopt a
more defensive posture.
A Personal Note
As we close this year, I thank you for the trust
you have placed in all of us at Longer Investments
in permitting us to act as your advisor. We appreci-
ate the special role we are privileged to play in the
lives of you and your families and in the missions of
the foundations, organizations, and corporations
whose assets we manage. As I celebrate my 25th
year in the business of managing assets, I am
grateful for a professional career that has been
personally fulfilling and rewarding. I look back on
the relationships this business has brought me —
with clients and their families, staff members,
colleagues, community groups, and professional
contacts — and I find it hard to imagine my life had I
not embarked upon this path. I have had generous
support from my family, former employers, mentors,
clients, and others throughout my career. All I can
say is that my heart is filled with gratitude each day.
We wish all of you and your families a healthy and
joyous new year.
Client Survey Update
Our client survey was completed in December.
The results will be shared with you during the first
quarter of 2008. We appreciate your participation;
the survey firm tells us that it has never before seen
such a high response rate. Thank you for taking the
time to help us plan our future together. We look
forward to discussing the results of the survey
with you.
LONGER INVESTMENTS INCORPORATED
Services Provided by Longer Investments Inc.: Personal Investment Planning -Risk Tolerance Assessment . Development of
an Investment Policy -Retirement Planning -IRA, Pension and Profit Sharing Management • Survivorship and Estate Transfer Planning
Charitable Trust Management -Nonprofit Foundation and Endowment Management • Tax and Accounting Facilitation • Reputable
Fee -Based Asset Management
P.O. Box 1269 • Fayetteville, Arkansas 72702
Telephone: 479-443-5851 . Toll free: 800-827-7710 • Fax: 479-443-7129 • E-mail: info@longainvcom
Web site. www.longerinvcom
LONGER INVESTMENTS INCORPORATED
Ah A Registered Investment Advisor
November 6, 2007
Ms. Sondra Smith
City of Fayetteville Police Pension Fund
113 W. Mountain St.
Fayetteville, Arkansas 72701
Dear Sondra:
RECEIVED
NOV 0 72007
CITY OF FAYEVILLE
CITY ClETERK'S OFFICE
By now you should have received the client survey that was mailed on October 25. If
you have already completed the survey and returned it to Advisor Impact, thank you for
taking the time to do so. Your responses will be invaluable as we plan the services that
we will provide in the future.
If you have not yet returned the survey, please complete it soon and return it before
November 15. Your opinion is important to us, and we'd like your thoughts to be
included in the survey results. Please contact us if you did not receive the survey and we
will forward another copy to you. As an alternative to filling out the paper survey, you
may complete the survey online via the following Web site:
http://advisorimpact.com/ss/wsb.dll/s/6gb7.
We appreciate your input and look forward to sharing the results of the survey with you.
Sincerely
President
EML:cmI
P.O.
ox.1269.
Fayetteville, Arkansas 72702
Telephone: 479-443-5851.
Toll free: 800-827-7710
Fax: 479-443-7129
Web site: www.longainvcom
LONGER INVESTMENTS INCORPORATED
LY6 A Registered Investment Advisor
October 251, 2007
Ms. Sondra Smith
City of Fayetteville Police Pension Fund
113 W. Mountain St.
Fayetteville, Arkansas 72701
Dear Sondra:
RECEIVED
OCT 2 6 2007
CITY OF FAYETTEVILLE
CITY CLERK'S OFFICE
Ensuring that we provide the highest level of service to our clients is a top priority for Longer
Investments Inc. For that reason, Advisor Impact has been retained to conduct a survey of our
clients to determine the fit between our clients' needs and the services we provide. Advisor
Impact is an independent consulting firm in the financial services industry that will review and
analyze the results in complete confidence.
The enclosed survey should take no more than 10 minutes to complete, and your responses will
be invaluable. We will use this information to enhance the services that we provide in the future.
We ask that you complete the survey and return it to Advisor Impact in the envelope provided by
November 15, 2007. If you prefer to exclude your name, simply indicate your desire for
anonymity in the final question and your name will be removed before the survey is returned to
our office.
Thank you in advance for your input. Please feel free to call our office if you have any questions.
Sincerely,
President
EML:cmI
Enclosures
P.O. Box 1269
, %,,. n
Fayetteville, Arkansas 72702
Telephone: 479-443-5851
Toil free: 800-827-7710
Fax: 479-443-7129
Web site: www.longerinv.com
LUNGER INVESTMENTS INC.
THANK YOU FOR YOUR INPUT
This survey will be returned to Advisor Impact, an independent consultant working on behalf of Longer
Investments Inc. We appreciate your feedback and will be working with Longer Investments to pass along any
feedback which we feel will be helpful in improving service.
OVERALL SATISFACTION
1. Please rate your overall satisfaction
with your relationship with Longer
Investments.
Very
Satisfied
Somewhat
Satisfied
Neutral Somewhat
Dissatisfied
Very
Dissatisfied
5
4
3 2
1
2. To what extent do you agree or disagree with the following statements?
I have a clear investment strategy in place to
meet my retirement/financial goals.
My quarterly statements are clear and easy to
understand.
I am confident in the skills of Longer
Investments' team of professionals.
I am comfortable with the level of risk in my
portfolio.
The range of services that Longer
Investments provides meets all of my
financial needs.
The investment performance of my portfolio
meets my expectations.
The frequency of my contact with the
portfolio manager and office professionals. is
sufficient to meet my needs.
The process of investment policy
development and of setting investment goals
improved my understanding of complex
financial concepts.
The Web site is easy to use to access
information about my portfolio.
The frequency of Web site report updates
(twice a week) is adequate to meet my needs.
I would recommend the services of Longer
Investments to family, friends and
colleagues.
Strongly Somewhat Neutral Somewhat Strongly Don't
Agree Agree Disagree Disagree Know
4 3 2 1 X
4 3 2 1 X
4 3 2 1 X
C 4 3 2 1 X
( 5) 4 3 2 1 X
C5 4 3 2 1 X
50 4 3 2 1 X
f
4 3 2 1 X
5 4 C3) 2 1" X
5 4 03 2 1 X
C5 4 3 2 1 X
Co LIENTAUDIT
LONGER INVESTMENTS INC.
YOUR EXPECTATIONS
3. The following list contains a series of items that may or may not be important to you in your relationship
with any investment advisor. Please rate each based on its importance to you.
Critical Somewhat Neutral Not Very Not at all
Important Important Important
Having a clear investment strategy in place to
meet my retirement/financial goals is...
4 3 2 1
Receiving quarterly statements that are clear
and easy to read is...
0 4 3 2 1
Having confidence in the skills of my
advisor's team of professionals is...
�5 4 3 2 1
JJ✓
Being comfortable with the level of risk in
my portfolio is...
D 4 3 2 1
Having access through my advisor to a range
of services that meets all of my financial 4 3 2 1
needs is... (D
Achieving investment performance that meets
my expectations is... j' S 4 3 2 1
The frequency with which my advisor's team
of professionals contacts me is... D5 4 3 2 1
Having processes and goals that help me
understand complex financial concepts is... f 5 4 3 2 1
Having an easy-to-use Web site to access ��^^��
information about my portfolio is... 5 4 C 3 I 2 1
Having frequent updates (twice a week) of
my reports on my advisor's Web site is... 5 4 C3�j 2 l
4. In a 12 -month period, how often do you expect to meet (either face-to-face or by telephone), to discuss your
portfolio?
00 01 02 ❑3 04 El 5+
5. Of the meetings indicated above, how many do you feel should be face-to-face, rather than by -telephone? If
you prefer all meetings to be face-to-face, select the same number as above.
00 01 02 03 ;94 05+
6. Do you feel it is important for Longer Investments to provide you with educational opportunities about the
markets a'�nvestments, such as newsletters or workshops?
and
❑ No ❑ 1 don't know
7. Are you comfortable discussing your portfolio with someone on Longer Investments' team other than your
portfolio —ma. ager?
fYes ❑ No ❑ I don't know
Co LIENTAUDIT
LONGER INVESTMENTS INC.
UN.ICATION AND
8. Which, if any, of the following would you be interested in learning more about? If you are not familiar with
the concept, simply select'I don't know'.
Business owner succession planning
❑ Yes
011�0
❑ I don't know
Estate planning
❑ Yes
"0
❑ I don't know
Family wealth counseling
❑ Yes
[bio
❑ I don't know
Finding an accountant
❑ Yes
10Xo
❑ I don't know
Finding an estate attorney
❑ Yes
03-lKo
❑ I don't know
Planning your legacy using charitable giving
❑ Yes
Flo
0 I don't know
Retirement planning
❑ Yes
"0
❑ I don't know
Trust services
❑ Yes
%2`�lo
❑. I don't know
3
2
1
X
9. Please rate the following activities and communications that you receive from Longer Investments in terms
of their value to you.
10. With which, if any, of the following professional advisors do you work? Beside each, indicate your level of
satisfaction with your relationship with that individual. If you are not an individual, please answer `Not
Applicable'.
Insurance agent
Other investment advisor
(stockbroker, financial
planner, trust officer)
Accountant
Estate attorney
Very Somewhat Neutral Somewhat Very Not
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1 ` X
11. If you indicated that you work with another investment advisor, with how many investment advisors do you
work, including Longer Investments?
El 03 04 El 5+
Ce LIENTAUDIT
Very
Somewhat
Of Little
Not at all
Don't
Valuable
Valuable
Value
Valuable
Know
Content on company Web site
4
3
2
1
t X
Face-to-face meetings with the portfolio
manager
4
3
2
1
X
Phone calls from client services manager
4
3
2
1
X
Quarterly newsletter—_y
3
2
1
X
Quarterly statement
; 4
3
2
1
X
10. With which, if any, of the following professional advisors do you work? Beside each, indicate your level of
satisfaction with your relationship with that individual. If you are not an individual, please answer `Not
Applicable'.
Insurance agent
Other investment advisor
(stockbroker, financial
planner, trust officer)
Accountant
Estate attorney
Very Somewhat Neutral Somewhat Very Not
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1 ` X
11. If you indicated that you work with another investment advisor, with how many investment advisors do you
work, including Longer Investments?
El 03 04 El 5+
Ce LIENTAUDIT
.�':� 'r,. �r \ .n, •.rv�. ,.yNv..'a .w w: i ar: s/ . a"., ;..... :..m. .."5>/'. .: ay.vaa w.,u .,"„ '.6 'Wi+.,r `�:LONGER INVESTMENTS INC.
ABOUT You
12. HoNywould you prefer to receive written communications from Longer Investments?
YBy mail ❑ By e-mail ❑ No preference
13. How many years have you been working wo Longer Investments?
0<1 01-2 03-5 06-9 LIM+
14. What percent of your investable assets is managed by Longer Investments? �
❑ <10% ❑ 10-24% ❑ 25-49% ❑ 50 - 74% ❑ 75 - 99% Q`100%
15. In an effort to ensure that Longer Investment's records are up to date, please provide the following
information. Do not complete this section if you are sending your survey anonymously.
What is our e-mail address?
=�
Do you work with an accountant? What is
his/her name and number?
Name:
Tel#:
Do you work with an estate attorney? What is
his/her name and number?
Name:
1
Tel#:
Do you have access to the Web?
EKes
❑ No
Have your circumstances changed since your
investment policywas last updated?
❑ Yes
�
P<O
Would you like to learn more about Longer
Investments' SEC -mandated disaster policy?
lees
❑ No
16. What could Longer Investments do differently to improve the level of service that is provided?
THANK YOU FOR TAKING THE TIME TO COMPLETE THIS SURVEY.
Your thoughtful responses are valued, as they will help to ensure your needs are met and any concerns are
addressed. To allow your advisor to respond to your specific needs, your name would be appreciated, but is not
required.
Name (please print):
Ce LIENTAUDIT
Lij,
LONGER
INVESTMENTS
INCORPORATED
City of Fayetteville
Police Pension Board Meeting
January 17, 2008
Quantity
Security
Common Stock
83,226.12
2,650
AT&T
2,225
Accenture Ltd.
2,315
Adobe Systems Inc.
1,925
Allergan Inc.
1,935
American International
55.58
Group Inc.
2,860
Amphenol Corp.
2,750
Archer -Daniels -Midland
33.06
Co.
1,000
B.P. Amoco PLC A.D.S.
2,600
Ceradyne Inc.
2,000
Chevron Corp.
3,450
Cisco Systems Inc.
2,500
Coca-Cola
1,275
Devon Energy Corp.
2,500
Dow Chemical Co.
6,700
EMC Corporation
2,225
Emerson Electric
1,525
ExxonMobil
7,550
Financial Select Sector
18.33
SPDR Fund
9,450
Flextronics hitemational
33.20
Ltd.
5,815
General Electric
220
Google
4,500
Health Care Select
55.00
Sector SPDR Fund
6,000
Intel Corp.
2,650
Johnson & Johnson
3,900
Kraft Foods hic.
4,500
Microsoft Corp.
2,000
Northern Trust Corp.
7,600
Oracle Corp.
1,215
Parker Hannifin Corp.
4,150
Pfizer
5,500
Powershares Dynamic
714.00
Networking
7,915
Powershares Water
0.9
Resource
1,900
Procter & Gamble
3,350
Teva Pharmaceuticals
2,500
Verizon
0.00
Communications
3,700
Walmart Stores
3,180
eBay Inc.
Preferred Debt Securities
4,000 AT&T Preferred
6.375% A2/A (C
2-12-12)
4,000 G.E. Preferred 6.625%
AAA/AAA (C 6-28-07)
Longer Investments Inc.
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
December 31, 2007
Unit Total Market
Cost Cost Price Value
27.29
72,325.00
37.40
83,226.12
42.69
98,834.06
61.43
118,246.44
55.65
107,685.27
38.07
108,887.99
32.79
90,167.93
55.58
55,576.67
47.85
124,398.79
44.40
88,805.53
33.06
114,048.27
41.90
104,754.84
66.34
84,581.34
42.23
105,575.50
16.30
109,205.20
26.98
60,025.82
55.07
83,989.24
29.63
223,702.64
11.93
112,759.58
32.33
188,021.28
531.61
116,953.28
36.52
164,342.25
18.33
109,997.24
61.53
163,051.47
33.20
129,489.45
30.29
136,291.50
57.45
114,891.13
18.04
137,139.48
55.00
66,825.57
23.15
96,072.50
18.81
103,482.50
18.31
144,928.30
64.17
121,931.67
38.62
129,384.85
40.60
101,500.00
44.47
164,520.87
33.60
106,847.63
4,242,467.18
24.05 96,200.00
24.46 97,833.20
194,033.20
1
Pct. Unit Annual Cur.
Assets Income Income Yield
41.56
110,134.00
1.0
1.600
4,240.00
5.9
36.03
80,166.75
0.7
0.420
934.50
1.1
42.73
98,919.95
0.9
0.000
0.00
0.0
64.24
123,662.00
1.1
0.200
385.00
0.3
58.30
112,810.50
1.0
0.800
1,548.00
1.4
46.37
132,618.20
1.2
0.060
171.60
0.2
46.43
127,682.50
1.2
0.460
1,265.00
1.4
73.17
73,170.00
0.7
2.600
2,600.00
4.7
46.93
122,018.00
1.1
0.000
0.00
0.0
93.33
186,660.00
1.7
2.320
4,640.00
5.2
27.07
93,391.15
0.9
0.000
0.00
0.0
61.37
153,425.00
1.4
1.360
3,400.00
3.2
88.91
113,360.25
1.1
0.560
714.00
0.8
39.42
98,550.00
0.9
1.680
4,200.00
4.0
18.53
124,151.00
1.2
0.000
0.00
0.0
56.66
126,068.50
1.2
1.200
2,670.00
4.4
93.69
142,877.25
1.3
1.400
2,135.00
2.5
28.93
218,421.50
2.0
1.046
7,897.00
3.5
12.06
113,967.00
1.1
0.000
0.00
0.0
37.07
215,562.05
2.0
1.240
7,210.60
3.8
691.48
152,125.60
1.4
0.000
0.00
0.0
35.31
158,895.00
1.5
0.521
2,346.12
1.4
26.66
159,960.00
1.5
0.450
2,700.00
2.5
66.70
176,755.00
1.6
1.660
4,399.00
2.7
32.63
127,257.00
1.2
1.080
4,212.00
3.3
35.60
160,200.00
1.5
0.440
1,980.00
1.5
76.58
153,160.00
1.4
1.120
2,240.00
1.9
22.58
171,608.00
1.6
0.000
0.00
0.0
75.31
91,501.65
0.8
0.840
1,020.60
1.5
22.73
94,329.50
0.9
1.280
5,312.00
5.5
18.04
99,220.00
0.9
0.000
0.00
0.0
21.40
169,381.00
1.6
0.071
558.17
0.4
73.42
139,498.00
1.3
1.400
2,660.00
2.2
46.48
155,708.00
1.4
0.340
1,139.00
0.9
43.69
109,225.00
1.0
1.720
4,300.00
4.2
47.53
175,861.00
1.6
0.880
3,256.00
2.0
33.19
105,544.20
1.0
0.000
0.00
0.0
4,967,844.55
46.0
80,133.58
2.0
24.12
96,480.00
0.9
1.594
6,375.00
6.6
24.66
98,640.00
0.9
1.656
6,625.00
6.8
1.8
6.7
195,120.00
13,000.00
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
December 31, 2007
Unit
Total
Market
Pct.
Unit
Annual
Cur.
Quantity
Security
Cost
Cost
Price
Value
Assets
Income
Income
Yield
Mutual Funds -Equity
3,600.0000
Japan Smaller
11.13
40,063.77
9.51
34,236.00
0.3
0.003
12.60
0.0
Capitalization Fund Inc.
1,250.0000
Thai Fund Inc.
13.66
17,079.88
13.05
16,312.50
0.2
0.423
528.75
3.1
775.0000
iShares MSCI Hong
22.71
17,600.25
21.93
16,995.75
0.2
0.311
240.93
1.4
Kong Index Fund
20,000.0000
iShares MSCI Japan
10.80
216,006.25
13.29
265,800.00
2.5
0.099
1,989.18
0.9
Index Fund
800.0000
iShares MSCI Malaysia
12.72
10,176.00
12.73
10,184.00
0.1
0.195
156.31
1.5
Index Fund
1,820.0000
iShares MSCI Taiwan
12.54
22,814.97
15.03
27,354.60
0.3
0.302
548.97
2.4
Index Fund
3,750.0000
iShares S&P Europe
82.54
309,531.29
114.34
428,775.00
4.0
2.083
7,810.60
2.5
350 Index
633,272.41
799,657.85
7.4
11,287.34
1.9
Corporate Bonds
160,000
Wells Fargo & Co.
100.65
161,033.25
100.12
160,196.96
1.5
6.250
10,000.00
6.2
AA2/AA (NC)
6.250% Due 04-15-08
100,000
McDonald's Corp ANA
98.45
98,450.00
105.70
105,703.30
1.0
6.000
6,000.00
6.1
(NC) 6.21% YTM
6.000% Due 04-15-11
Accrued Interest
3,377.78
0.0
259,483.25
269,278.04
2.5
16,000.00
6.2
Government Bonds
150,000
U. S. Treasury Note
100.00
150,000.00
108.25
162,375.00
1.5
5.125
7,687.50
5.1
5.125% Due 05-15-16
Accrued Interest
971.50
0.0
150,000.00
163,346.50
1.5
7,687.50
5.1
Government Agency
150,000
Federal Home Loan
100.00
150,000.00
100.91
151,359.37
1.4
5.250
7,875.00
5.2
Bank (NC)
5.250% Due 11-14-08
135,000
Federal Home Loan
100.00
135,000.00
100.06
135,084.37
1.3
4.500
6,075.00
4.5
Bank (Callable 2-26-08
@ 100, 1X)
4.500% Due 11-26-08
75,000
Federal Farm Credit
100.00
75,000.00
101.06
75,796.87
0.7
5.200
3,900.00
5.2
Bureau (NC)
5.200% Due 12-10-08
150,000
Federal Home Loan
100.00
150,000.00
100.00
150,000.00
1.4
4.300
6,450.00
4.3
Bank (Callable 6-10-08
@ 100, IX)
.,
4.300% Due 12-10-08
100,000
Federal Farm Credit
100.50
100,500.00
101.62
101,625.00
0.9
5.400
5,400.00
5.4
Bank (NC) 5.31 % YTM
5.400% Due 02-11-09
50,000
Federal Home Loan
99.87
49,937.50
101.44
50,718.75
0.5
5.250
2,625.00
5.3
Bank (NC)
5.250% Due 02-13-09
2
LONGER INVESTMENTS INCORPORATED
A Registered Investment
Advisor
Longer Investments Inc.
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
December 31, 2007
9
Annual Cur.
Income Yield
6,750.00 6.7
12,750.00 5.1
11,531.25 5.1
16,800.00 5.2
3,263.00 5.0
3,000.00 6.0
5,400.00 5.4
5,080.00 5.1
12,550.00 5.0
5,000.00 5.0
2,116.67 5.1
12,500.00 5.0
13,125.00 5.2
2,525.00 5.0
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Unit
Total
Market
Pct.
Unit
Quantity
Security
Cost
Cost
Price
Value
Assets
Income
100,000
Federal Farm Credit
100.00
100,000.00
104.56
104,562.50
1.0
6.750
Bank (NC)
6.750% Due 07-07-09
250,000
Federal Home Loan
100.00
250,000.00
100.47
251,171.87
2.3
5.100
Bank (Callable 5-20-08
@ 100, IX)
5.100% Due 11-20-09
225,000
Federal Home Loan
100.00
225,000.00
100.16
225,351.56
2.1
5.125
Bank (Callable 4-9-08
@ 100, quarterly)
5.125% Due 04-09-10
320,000
Federal Home Loan
100.00
320,000.00
101.37
324,400.00
3.0
5.250
Bank (Callable 2-9-09
@ 100, 1X)
5.250% Due 02-09-11
65,000
Federal Home Loan
100.00
65,000.00
101.44
65,934.37
0.6
5.020
Bank (Callable 4-13-09
@ 100, 1X)
5.020% Due 04-13-11
50,000
Federal Home Loan
100.00
50,000.00
107.50
53,750.00
0.5
6.000
Bank (NC)
6.000% Due 05-13-11
100,000
Fed Nat'l Mortgage
100.00
100,000.00
101.06
101,062.50
0.9
5.400
Assoc (Callable 9-15-08
@ 100, IX)
5.400% Due 09-15-11
100,000
Federal Farm Credit
100.00
100,000.00
102.53
102,531.25
1.0
5.080
Bank (Callable
10-13-09 @ 100, CC)
5.080% Due 10-13-11
250,000
Federal Home Loan
100.00
250,000.00
101.03
252,578.12
2.3
5.020
Bank (Callable
12-12-08 @ 100, 1X)
5.020% Due 06-12-12
100,000
Federal Home Loan
100.00
100,000.00
103.47
103,468.75
1.0
5.000
Bank (Callable 10-1-10
@ 100, IX)
5.000% Due 10-01-12
41,667
Federal Home Loan
100.00
41,666.67
100.00
41,666.67
0.4
5.080
Bank (Callable since
10-3-03 @ 100, CC)
5.080% Due 10-03-12
250,000
Federal Home Loan
100.00
250,000.00
100.00
250,000.00
2.3
5.000
Bank (Callable since
10-5-07 @ 100, CC)
5.000% Due 10-05-12
250,000
Federal Home Loan
100.00
250,000.00
101.12
252,812.50
2.3
5.250
Bank (Callable
11-14-08 @ 100, 1X)
5.250% Due 11-14-12
50,000
Federal Home Loan
100.00
50,000.00
100.00
50,000.00
0.5
5.050
Bank (Callable since
2-20-04 @ 100, CC)
5.050% Due 02-20-13
9
Annual Cur.
Income Yield
6,750.00 6.7
12,750.00 5.1
11,531.25 5.1
16,800.00 5.2
3,263.00 5.0
3,000.00 6.0
5,400.00 5.4
5,080.00 5.1
12,550.00 5.0
5,000.00 5.0
2,116.67 5.1
12,500.00 5.0
13,125.00 5.2
2,525.00 5.0
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
December 31, 2007
Bank (Callable since
11-6-06 @ 100, CC)
Unit
Total
Market
Pct.
Unit
Annual
Cur.
Quantity Security
Cost
Cost Price
Value
Assets
Income
Income
Yield
50,000 Federal Farm Credit
100.00
50,000.00 100.03
50,015.62
0.5
5.200
2,600.00
5.2
Bank (Callable since
11-6-06 @ 100, CC)
Alternative Investments
3,400 Market Vectors Gold 46.99
Miners
Cash and Equivalents
Dividends Accrued
Money Market
Restricted Cash
TOTAL PORTFOLIO
125,000.00 100.00 125,000.00 1.2 5.300 6,625.00 5.3
199,938.00 112.25 224,500.00 2.1 6.125 12,250.00 6.1
300,000.00 102.51 307,541.10 2.9 6.000 18,000.00 6.0
100,000.00 101.44 101,437.50 0.9 6.000 6,000.00 6.0
275,000.00 105.19 289,265.62 2.7 6.140 16,885.00 6.1
3,862,042.17
159,763.62 45.83
159,763.62
24,060.74
123,523.72
105,000.00
252,584.46
9,753,646.29
11
43,866.56
5.200% Due 11-06-13
125,000
Federal Farm Credit
100.00
36.9
Bank (Callable since
207,075.92
5.4
6-22-07 @ 100, CC)
1.4
2.980
5.300% Due 06-22-15
6.3
200,000
Federal Farm Credit
99.97
Bank (NC) 6.127%
155,822.00
10,132.00
YTM
0.2
0.000
6.125% Due 12-29-15
0.0
300,000
Federal Home Loan
100.00
4,702.55
Mortgage Corp.
105,000.00
1.0
(Callable 4-28-09 @
3,997.35
3.8
100, quarterly)
2.3
6.000% Due 04-28-16
3.4
100,000
Fed Nat'l Mortgage
100.00
Assoc (Callable
10,789,154.30
354,016.23
10-24-08 @ 100,
quarterly)
6.000% Due 10-24-16
275,000
Federal Farm Credit
100.00
Bank (Callable 7-13-10
@ 100, CC)
6.140% Due 07-13-17
Accrued Interest
Alternative Investments
3,400 Market Vectors Gold 46.99
Miners
Cash and Equivalents
Dividends Accrued
Money Market
Restricted Cash
TOTAL PORTFOLIO
125,000.00 100.00 125,000.00 1.2 5.300 6,625.00 5.3
199,938.00 112.25 224,500.00 2.1 6.125 12,250.00 6.1
300,000.00 102.51 307,541.10 2.9 6.000 18,000.00 6.0
100,000.00 101.44 101,437.50 0.9 6.000 6,000.00 6.0
275,000.00 105.19 289,265.62 2.7 6.140 16,885.00 6.1
3,862,042.17
159,763.62 45.83
159,763.62
24,060.74
123,523.72
105,000.00
252,584.46
9,753,646.29
11
43,866.56
0.4
3,985,500.90
36.9
207,075.92
5.4
155,822.00
1.4
2.980
10,132.00
6.3
1.4
6.3
155,822.00
10,132.00
24,060.74
0.2
0.000
0.00
0.0
123,523.72
1.1
3.807
4,702.55
3.8
105,000.00
1.0
3.807
3,997.35
3.8
252,584.46
2.3
8,699.90
3.4
100.0
3.6
10,789,154.30
354,016.23
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
SUMMARY OF REALIZED GAINS & LOSSES
AND INCOME & EXPENSES
City of Fayetteville Police Pension Fund
January 1, 2007 to December 31, 2007
TOTAL REALIZED GAINS AND LOSSES
Income and Expenses
Income: Common Stock
Preferred Debt Securities
Mutual Funds - Equity
Corporate Bonds
Government Bonds
Government Agency
Treasury Bills
Alternative Investments
Money Market
Expenses: Automated Cash Mgmt.
Foreign Tax on Dividends
Northern Trust Fee
Management Fee
NET INCOME
5
413,642.86
88,593.26
2,895.30
15,798.25
22,143.13
8,789.23
218,379.70
2,015.62
2,533.00
11,907.70
394.28
199.61
5,659.64
82,052.04
284,749.62
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
FIXED INCOME DISTRIBUTION
City of Fayetteville Police Pension Fund
December 31, 2007
Totals
Par Value
41271,667
Market Value
4,418,125
Total Cost
41271,525
Net Gain/Loss
146,600
Annual Income
230,763
Accrued Interest
48,215
Number of Issues
29
Summary Information
Distribution by Maturity
vs.
Weighted Averages
12/31/07
12/31/06
Average YTM
5.4
5.4
Average Maturity (yrs)
4.4
4.3
Average Coupon (%)
5.41
5.44
Average Duration
3.7
3.6
Distribution by Maturity
R
LONGER INVESTMENTS INCORPORATED
16 A Registered Investment Advisor
% Bond
Average
Average
Average
Maturity
Number
Mkt Value
Holdings
Y T M
Coupon
Duration
Under 1 Yr
5
676,749
15.3%
5.1
5.12%
0.7
1 Yr - 3 Yrs
5
743,862
16.8%
5.4
5.40%
1.7
3 Yrs - 5 Yrs
11
1,672,711
37.9%
5.2
5.22%
3.6
5 Yrs - 7 Yrs
2
101,331
2.3%
5.1
5.13%
4.7
7 Yrs - 10 Yrs
6
15223,470
27.7%
5.9
5.87%
6.6
R
LONGER INVESTMENTS INCORPORATED
16 A Registered Investment Advisor
Longer Investments Inc.
LARGEST HOLDINGS
City of Fayetteville Police Pension Fund
December 31, 2007
Percent of Percent of
Equity Portfolio Total Portfolio
(Historical Cost) (Historical Cost)
General Electric 3.9% 1.9%
Walmart Stores 3.4% 1.7%
Johnson & Johnson 2.8% 1.4%
Oracle Corp.
2.8%
1.4%
Microsoft
2.8%
1.4%
7
LONGER INVESTMENTS INCORPORATED
,16 A Registered Investinent Advisor
Longer Investments Inc.
MODEL PORTFOLIO REPORT
City of Fayetteville Police Pension Fund
December 31, 2007
Industry Weighting Versus S&P
Overweight
CAPITAL GOODS
HEALTH CARE
TECHNOLOGY
Underweight
CONSUMER CYCLICAL
Even
CYCLICAL
FINANCIAL
UTILITIES
CONSUMER NON-CYCLICAL
ENERGY
I
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
CONTRIBUTIONS/WITHDRAWALS
City of Fayetteville Police Pension Fund
From 01-01-07 To 12-31-07
CONTRIBUTIONS
01-17-07
Money Market
$222.18
02-01-07
World Com litigation settlement
$95,000.00
01-23-07
Money Market
$10.84
04-01-07
Peoplesoft litigation settlement
$107,000.00
02-01-07
Money Market
$465.51
06-01-07
Honeywell Inc. litigation settlement
$35,000.00
06-07-07
Money Market
$12.10
09-01-07
First Chicago NBD Corporation class action distribution
$120,000.00
07-26-07
Money Market
$120,000.00
10-26-07
Money Market
$196.26
Cisco Systems litigation distribution
$1,017,000.00
$120,906.89
WITHDRAWALS
01-01-07
Money Market
$117,000.00
02-01-07
Money Market
$95,000.00
03-05-07
Money Market
$118,000.00
04-01-07
Money Market
$107,000.00
05-01-07
Money Market
$115,000.00
06-01-07
Money Market
$35,000.00
07-01-07
Money Market
$103,000.00
09-01-07
Money Market
$120,000.00
10-01-07
Money Market
$122,000.00
11-01-07
Money Market
$85,000.00
$1,017,000.00
6
LONGER INVESTMENTS INCORPORATED
1116 A Registered Investment Advisor
Longer Investments Inc.
PERFORMANCE SUMMARY
City of Fayetteville Police Pension Fund
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Cumulative Return:
Annualized Return:
Index Return (2007)
S&P 500 (cash basis)
S&P 500 (inc. div.)
DJIA (cash basis)
DJIA (inc. div.)
Russell 2000.
Beginning Value
Deposits
Transfer of Securities
Withdrawals
Net Income
Change in Accrued Income
Realized Gains
Unrealized Gains
Ending Value
Total Investment Return
December 31, 2007
Equity
Mutual Fixed -
Equities Funds Income
39.5%
-1.0%
12.1%
-7.9%
27.7%
14.1%
35.7%
21.5%
5.7%
-10.0%
-16.7%
-32.9%
27.9%
7.4%
-1.1%
17.4%
10.8%
221.8%
7.1%
3.5%
5.5%
6.4%
8.8%
-2.8%
6.9%
3.4%
2.5%
9.0%
38.4%
-12.3%
-13.8%
-23.1%
21.9%
7.6%
20.8%
17.8%
2.9%
90.9%
5.5%
17.2%
7.4%
8.5%
-5.7%
14.7%
2.5%
6.7%
7.4%
0.3%
9.0%
7.9%
9.6%
2.2%
2.7%
2.1%
3.5%
6.5%
165.0%
5.9%
Total
28.1%
0.6%
9.3%
-5.7%
19.6%
6.9%
19.2%
13.0%
3.3%
-0.2%
-1.9%
-2.0%
11.1%
5.5%
1.3%
10.5%
8.2%
221.5%
7.1%
July 26, 1990 (inception) throuLyh December 31, 2007
$1,350,354.18
3,076,609.55
453205502.68
(5,1055000.00)
3,818,298.27
16,087.00
25440,180.98
872,121.64
$1037895154.30
$791469687.89
Returns are reported net of all fees and expenses.
10
LONGER INVESTMENTS INCORPORATED
A Registered Invesfinent Advisor
CITY OF FAYETTEVILLE, ARKANSAS
POLICEMEN'S PENSION & RELIEF FUND
INVESTMENT POLICY
PURPOSE: The purpose of this policy is to define the guidelines of 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 average annual rate of return of 6% on the
Fund's total portfolio to satisfy actuarial projections. The board expects the
total fund, as well as each component, (i.e.: equity fund, balanced fund, fixed
income fund, etc.) to:
1. Perform in the top one-third of an evaluation services universe using a
Standard & Poor's 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 through § 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 judgment
and care which an institutional investor of ordinary prudence, discretion,
and intelligence exercises in the management of large investments
entrusted to it, considering probably safety of capital as well as probably
income.
1
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 the lowest bid. All contracts shall include
a 30 -day cancellation provision.
4. Investment management of the portfolio will be implemented on a
fully discretionary basis, once investment policy is approved by the
client. Transactions conducted in accordance with the investment
policy will take place without prior notification provided to the client
upon the execution of individual trades. Monthly statements issued by
the custodian will include a summary of all transactions. 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 2.5% of the fund's total assets valued at cost
may 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).
Rated equities purchased for the account will carry a
minimum Standard & Poor's rating of "B-". Non -rated
stocks will be assigned a rating less than `B-" for calculation of
the weighted average equity portfolio rating. The weighted
average rating of the equity portfolio must be equivalent to
a Standard & Poor's rating of `B+" or better.
b) No more than I I% 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 a rating of
investment grade or better by Moody's or by Standard &
Poor's.
2
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 at any
national bank or federal savings and loan institution, and
corporate issues of one year maturity or less. Funds may be
held in U. S. government money market funds during
periods of purchasing securities.
e) Investment in international securities will be limited to
50% of the equity portfolio at cost. 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) Options may be used for hedging purposes only.
5. Investments and reinvestment shall be made only 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.
e) Average maturities of applicable securities on an annual
basis.
3
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 investments 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 and the total amount of transaction fees on a
monthly and year to date 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, with emphasis on
getting consideration of the level of service rendered and
performance of execution. 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. Current annual benefit payments are approximately
$1,188,000. This amount will be partially offset by contributions to the plan
from employees, employer match, state insurance premium tax turnback, and
local millage. Contributions to the plan totaled $628,724 in 2002.
IV. Asset Allocation/Diversification:
A. The maximum allocation of investment categories shall be 50% for
equities and the balance in fixed income and cash and cash equivalents.
.91
i
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: 0% - 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, U.S. government money market funds may be
utilized.
2. Fixed Income: 25% - 65%
The quality of fixed income securities shall not be rated less than
investment grade by Moody's or Standard & Poor's. Any one
issue shall not exceed 11 % 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.
This does not apply to U.S. Treasury or government guaranteed or
agency debt securities. Whenever possible, call protection shall be
integrated into the portfolio to stabilize the current income and
marketability of the portfolio.
3. Equities: 35% - 50%
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. The Manager can operate outside the Equity
guidelines by not more that 10% with a report on the variance to the
Board at their next quarterly meeting. The Board will then authorize
or reject the variance for the next quarter.
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 an 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 conditions 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. Annually, the City Accounting Division shall prepare a 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.
ACCEPTED:
City of Yi-qyel
dy, Mayor
Police Pension and Relief Board of Trustees
Sondra Smith Date
Eldon Roberts
Date
f
cry end ate
Longer Investments Inc.
Elaine M. Wen Date
G�
g 5107
Tim Helder / Date
Frank J
7
W. Syanl Date
i
Longer Investments Inc.
REALIZED GAINS AND LOSSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Cost
Date Quantity Security Basis Proceeds Gain Or Loss
01-03-07
-32
Dell January 25 Calls
2,976.00
8,853.72
5,877.72
01-03-07
900
Schlumberger, LTD
53,253.00
55,013.86
1,760.86
01-04-07
2,500
Chico's FAS Inc.
52,425.50
52,029.39
-396.11
01-04-07
2,805
ProShares Ultrashort Dow 30
160,628.89
160,552.98
-75.91
01-05-07
1,450
streetTRACKS Gold Shares
92,116.15
86,833.63
-5,282.52
01-05-07
3,000
Powershares Dynamic
49,663.85
53,503.35
3,839.50
Networking
01-09-07
1,775
streetTRACKS Gold Shares
112,762.87
106,771.66
-5,991.21
01-19-07
-10
B.P. Amoco PLC January 60
4,671.80
7,027.11
2,355.31
Calls
01-22-07
-5
B.P. Amoco PLC January 60
3,513.56
3,513.56
0.00
Calls
01-22-07
500
B.P. Amoco PLC A.D.S.
21,716.67
33,477.63
11,760.96
01-22-07
2,125
Caterpillar Inc.
115,342.03
124,097.67
8,755.64
01-22-07
1,775
streetTRACKS Gold Shares
112,762.87
112,071.65
-691.22
01-22-07
1,750
Time -Warner, hie.
30,205.30
39,338.78
9,133.48
01-25-07
2,250
American International
154,126.45
154,839.12
712.67
Group Inc.
01-25-07
875
Schlumberger, LTD
51,773.75
55,503.30
3,729.55
01-26-07
2,150
BB & T Corp.
94,555.28
90,200.47
-4,354.81
01-30-07
1,850
Gannett Co., Inc.
107,634.30
106,477.91
-1,156.39
02-02-07
3,750
Dell Computer Corporation
87,072.07
89,250.63
2,178.55
02-06-07
575
Avon Products hie.
19,981.25
21,858.29
1,877.04
02-06-07
250,000
Federal Home Loan Bank
250,000.00
249,502.50
-497.50
(NC)
5.020% Due 09-14-07
02-08-07
1,000
HSBC Holdings PLC ADS
92,388.00
89,507.44
-2,880.56
02-08-07
70,000
U. S. Treasury Note
70,000.00
70,218.75
218.75
6.625% Due 05-15-07
02-16-07
1,350
Amgen Inc.
93,790.44
90,019.69
-3,770.75
02-22-07
635
International Business
52,932.97
62,143.95
9,210.98
Machines Corp.
02-22-07
5,500
Sara Lee Corp.
95,005.51
94,432.08
-573.43
02-23-07
950
International Business
79,191.05
92,796.94
13,605.89
Machines Corp.
02-23-07
1,615
J.B. Hunt Transport Services
36,358.16
44,850.23
8,492.07
Inc.
03-01-07
75,000
Morgan Stanley Group Note
74,046.10
75,000.00
953.90
AA3/A+ (NC)
6.875% Due 03-01-07
03-01-07
3,200
Par Pharmaceutical
68,378.88
77,316.01
8,937.13
03-01-07
1,850
Barr Pharmaceuticals hie.
94,628.98
93,755.11
-873.87
03-01-07
2,050
Electronic Arts hie.
107,396.55
102,136.87
-5,259.68
03-02-07
4,045
Gap, Inc.
79,752.86
73,612.28
-6,140.58
03-07-07
2,225
Ceradyne Inc.
120,916.70
119,658.38
-1,258.32
03-08-07
985
Diamonds Trust Series I
119,646.08
120,939.90
1,293.82
03-08-07
250.0000
iShares FTSE China Index
26,247.10
24,702.99
-1,544.11
Fund
03-09-07
1,000
Diamonds Trust Series I
121,468.10
122,744.02
1,275.92
03-14-07
150,000
Federal Home Loan
150,000.00
150,000.00
0.00
Mortgage Corp. (C 3-14-07
@ 100, 1X)
5.100% Due 03-14-08
03-15-07
2,235
Anadarko Petroleum Corp.
81,820.51
88,822.64
7,002.13
1
LONGER INVESTMENTS INCORPORATED
A Registered Investrwit Advisor
Longer Investments Inc.
REALIZED GAINS AND LOSSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
PA
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Cost
Date
Quantity
Security
Basis
Proceeds
Gain Or Loss
03-23-07
1,150
J.B. Hunt Transport Services
25,889.71
31,832.09
5,942.38
Inc.
03-26-07
205
Google
92,005.30
94,883.54
2,878.24
03-28-07
2,600
Powershares Dynamic
46,982.00
46,958.65
-23.35
Networking
03-29-07
1,900
Powershares Dynamic
34,333.00
34,190.35
-142.65
Networking
04-12-07
2,000
Bed Bath & Beyond Inc.
83,566.40
79,784.97
-3,781.43
04-13-07
150
Newell Rubbermaid Inc.
3,778.87
4,574.92
796.05
04-13-07
500
G.E. Preferred 6.10%
12,535.00
12,544.80
9.80
AAA/AAA (C 11-15-07)
04-13-07
2,500
Hain Celestial Group, Inc.
51,478.15
75,504.09
24,025.94
04-16-07
750
Chevron Corp.
33,302.07
57,779.11
24,477.04
l 04-16-07
350
Peabody Energy Corp
13,631.10
16,738.28
3,107.18
04-17-07
-10
B.P. Amoco PLC April 60
9,651.85
5,916.90
-3,734.95
Calls
04-18-07
775
Johnson & Johnson
47,184.05
49,854.98
2,670.93
1 04-18-07
1,000
Newmont Mining Corporation
47,329.90
44,480.91
-2,848.99
04-18-07
1,200
Newell Rubbermaid Inc.
30,230.94
36,707.91
6,476.97
04-18-07
850
AT&T
23,198.59
33,052.34
9,853.75
04-19-07
4,810
Powershares Dynamic Oil &
97,465.70
105,120.93
7,655.23
Gas Services
04-20-07
275
Peabody Energy Corp
10,710.15
12,696.20
1,986.05
04-26-07
1,725
Peabody Energy Corp
67,181.85
85,008.59
17,826.74
04-26-07
725
Danaher Corp.
52,243.50
50,959.46
-1,284.04
04-26-07
2,415
Newmont Mining Corporation
114,301.71
102,675.53
-11,626.18
04-30-07
750
US Bancorp
24,051.87
25,875.43
1,823.56
05-07-07
1,150
Newell Rubbermaid Inc.
28,971.31
35,359.66
6,388.35
05-07-07
1,850
Newell Rubbermaid Inc.
46,606.03
56,882.92
10,276.89
05-09-07
-10
B.P. Amoco PLC May 60
9,547.30
9,547.30
0.00
j
Calls
05-09-07
280
Cameco Corp.
11,017.13
14,167.78
3,150.65
05-09-07
250
G.E. Preferred 6.10%
6,267.50
6,277.40
9.90
AAA/AAA (C 11-15-07)
05-09-07
1,000
B.P. Amoco PLC A.D.S.
55,576.67
69,476.38
13,899.71
05-11-07
3,850
Bristol Myers Squibb
101,652.00
115,305.73
13,653.73
05-11-07
750
Whole Foods Market, hic.
34,361.10
30,779.30
-3,581.80
05-14-07
1,525
Whole Foods Market, Inc.
69,867.57
60,670.59
-9,196.98
05-30-07
2,325
Yahoo! Inc.
67,087.88
64,959.50
-2,128.38
06-01-07
400
Computer Sciences Corp.
21,342.40
22,442.69
1,100.29
06-01-07
900
Disney Company
23,458.67
31,689.32
8,230.65
06-01-07
750
US Bancorp
24,051.87
25,923.35
1,871.48
06-01-07
2,095
The Technology Select Sec
51,704.60
53,610.22
1,905.62
SPDR Fund
06-07-07
1,500.0000
iShares MSCI Hong Kong
25,815.00
24,449.62
-1,365.38
Index Fund
06-07-07
315
Bank of America Corp.
14,799.27
15,734.00
934.73
06-12-07
3,250
US Bancorp
104,224.78
110,530.80
6,306.02
06-13-07
2,000
Computer Sciences Corp.
106,712.00
108,858.33
2,146.33
06-15-07
250
G.E. Preferred 6.10%
6,267.50
6,037.40
-230.10
AAA/AAA (C 11-15-07)
06-15-07
950
Coca-Cola
39,806.84
49,147.68
9,340.84
06-15-07
875
Walmart Stores
41,190.98
43,308.51
2,117.53
PA
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
i
Longer Investments Inc.
REALIZED GAINS AND LOSSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Cost
Date Quantity Security Basis Proceeds Gain Or Loss
06-18-07
485
Health Care Select Sector
16,014.06
17,367.58
1,353.52
SPDR Fund
06-19-07
0
Citadel Broadcasting
1.74
2.33
0.59
06-20-07
230
Citadel Broadcasting
1,028.96
1,471.15
442.19
06-20-07
2,175
Best Buy
104,993.12
98,591.23
-6,401.89
06-20-07
525
Western Digital Corp.
10,048.50
10,029.28
-19.22
06-25-07
1,000
Hain Celestial Group, Inc.
20,591.26
28,349.26
7,758.00
06-26-07
195
Devon Energy Corp.
12,935.97
15,001.12
2,065.15
07-01-07
50,000
Cleve Electric/Toledo Ed.
49,543.00
50,000.00
457.00
Aaa/AAA (NC) AMBAC
YTM 7.30%
7.130% Due 07-01-07
07-02-07
150
Devon Energy Corp.
9,950.75
11,800.40
1,849.65
07-02-07
2,150
Norfolk Southern Corp.
114,142.80
115,242.32
1,099.52
07-02-07
900
AT&T
24,563.21
37,324.13
12,760.92
07-02-07
2,300
Western Digital Corp.
44,022.00
45,079.30
1,057.30
07-06-07
4,350
Parametric Technology Corp.
86,902.50
75,439.15
-11,463.35
07-09-07
4,800
Symantec Corp.
95,167.47
93,982.55
-1,184.92
07-10-07
250,000
Federal Home Loan Bank
250,000.00
249,725.00
-275.00
(NC)
5.020% Due 09-14-07
07-10-07
500
G.E. Preferred 6.10%
12,535.00
12,014.81
-520.19
AAA/AAA (C 11-15-07)
07-11-07
500
G.E. Preferred 6.10%
12,535.00
11,974.81
-560.19
AAA/AAA (C 11-15-07)
07-13-07
4,000
Patterson -UTI Energy Inc.
95,642.00
100,129.26
4,487.26
07-13-07
2,775
International Rectifier Corp.
105,738.50
108,033.53
2,295.03
07-17-07
950
Cameco Corp.
37,379.55
44,577.97
7,198.42
07-24-07
600
Wyeth
34,043.10
30,329.77
-3,713.33
07-25-07
1,980
American hitemational
133,848.67
133,964.15
115.48
Group Inc.
07-25-07
2,500
Bank of America Corp.
117,454.50
118,923.67
1,469.17
07-25-07
1,150
Cameco Corp.
45,248.93
48,291.90
3,042.97
07-25-07
550
AT&T
15,010.85
22,130.23
7,119.38
07-25-07
1,435
Time -Warner, Inc.
25,758.43
28,987.55
3,229.12
07-25-07
1,480
Texas Instruments
44,529.00
54,581.56
10,052.56
07-26-07
1,400
Wyeth
79,433.90
69,717.11
-9,716.79
07-27-07
4,500
Time -Warner, hie.
80,775.58
87,748.65
6,973.07
07-30-07
2,225
American Express Co.
130,079.95
131,085.20
1,005.25
07-30-07
575
Goldman Sachs Group hie.
110,132.34
111,621.26
1,488.92
07-30-07
2,300
Ingersoll-Rand Co. Ltd.
94,602.22
115,398.66
20,796.44
07-30-07
5,100
Powershares Dynamic
96,686.82
96,962.26
275.44
Semiconductors
07-31-07
2,000
Amgen hie.
114,602.50
108,433.33
-6,169.17
07-31-07
2,815
Avon Products Inc.
100,510.75
101,602.49
1,091.74
08-01-07
2,750
Amphenol Corp.
102,274.53
97,548.43
-4,726.10
08-02-07
1,115
Barclays PLC
45,783.13
61,955.81
16,172.68
08-07-07
630
Goldman Sachs Group hie.
112,151.21
119,652.49
7,501.28
08-07-07
2,000
Petsmart hie.
64,211.40
61,876.05
-2,335.35
08-07-07
875
Standard & Poors Depository
126,107.89
128,807.03
2,699.14
Receipts
08-09-07
220
Northern Trust Corp.
12,638.02
14,187.54
1,549.52
08-10-07
2,625
Standard & Poors Depository
378,323.66
380,429.38
2,105.72
Receipts
3
LONGER INVESTMENTS INCORPORATED
A Registered blvestment Advisor
i
Longer Investments Inc.
REALIZED GAINS AND LOSSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Cost
Date Quantity Security Basis Proceeds Gain Or Loss
08-10-07
3,210
Financial Select Sector SPDR
109,147.38
106,506.16
-2,641.22
Fund
08-13-07
465
Parker Hannifin Corp.
38,362.82
45,778.21
7,415.39
08-13-07
3,205
Financial Select Sector SPDR
108,977.37
107,858.13
-1,119.24
Fund
08-14-07
2,750
Cameco Corp.
107,625.38
108,180.32
554.94
08-15-07
3,235
Goldcorp hic.
81,788.89
76,220.61
-5,568.28
08-16-07
675
Emerson Electric
18,210.08
29,614.96
11,404.88
08-16-07
625
Walmart Stores
29,422.13
27,067.77
-2,354.36
08-16-07
1,250
Walmart Stores
58,844.26
54,135.54
-4,708.72
08-17-07
850
Standard & Poors Depository
122,318.65
123,673.10
1,354.44
Receipts
08-20-07
1,850
Standard & Poors Depository
266,222.95
267,609.50
1,386.54
Receipts
08-23-07
310
Diamonds Trust Series I
39,694.91
40,894.79
1,199.88
08-24-07
225,000
Federal Home Loan Bank (C
225,000.00
225,000.00
0.00
8-24-07 @ 100, 1X)
5.520% Due 02-24-10
08-27-07
1,000
Diamonds Trust Series I
128,048.10
133,516.25
5,468.15
09-07-07
1,475
United Parcel Service hic.
109,137.76
109,074.58
-63.18
09-10-07
375
Diamonds Trust Series I
49,820.59
49,499.24
-321.35
09-11-07
1,750
Varian Medical Systems hic.
77,874.48
69,994.72
-7,879.76
09-12-07
1,030
Health Care Select Sector
34,563.20
35,838.30
1,275.10
SPDR Fund
09-12-07
3,070
Health Care Select Sector
103,018.47
106,819.01
3,800.54
SPDR Fund
09-13-07
100
Diamonds Trust Series I
13,285.49
13,442.79
157.30
09-13-07
900
Health Care Select Sector
30,200.85
31,562.51
1,361.66
SPDR Fund
09-13-07
150
St. Jude Medical Inc.
5,831.14
6,896.07
1,064.93
09-17-07
500
Barrick Gold Corp.
15,045.00
18,740.21
3,695.21
09-18-07
2,650
The Technology Select Sec
67,727.16
68,518.67
791.51
SPDR Fund
09-24-07
4,500
Parametric Technology Corp.
80,874.00
73,466.77
-7,407.23
09-25-07
3,885
Lowe's Companies Inc.
110,674.34
111,998.17
1,323.83
09-28-07
540
First Trust Dow Jones
13,378.72
14,007.38
628.66
Internet Index
10-02-07
4,000
First Trust Dow Jones
99,101.66
105,469.98
6,368.32
Internet Index
10-03-07
100,000
Fed Nat'l Mortgage Assoc
100,000.00
100,000.00
0.00
(Callable 10-3-07 @ 100,
1 X)
5.125% Due 10-03-08
10-05-07
2,250
Barrick Gold Corp.
67,702.50
91,213.60
23,511.10
10-10-07
300
Applied Materials Inc.
4,825.41
6,074.90
1,249.49
10-10-07
1,100
The Technology Select Sec
28,113.16
30,469.53
2,356.37
SPDR Fund
10-17-07
3,500
Citigroup
157,176.70
157,322.59
145.89
10-17-07
50
Google
25,299.31
31,326.77
6,027.46
10-17-07
1,050
General Electric
33,387.73
43,001.46
9,613.73
10-18-07
800
eBay Inc.
28,361.71
30,515.93
2,154.22
10-18-07
550
Texas Instruments
16,547.94
18,714.67
2,166.73
10-22-07
3,635
Patterson -UTI Energy Inc.
80,930.73
75,979.42
-4,951.31
10-23-07
2,400
Texas Instruments
72,209.19
75,856.83
3,647.64
r.I
LONGER INVESTMENTS INCORPORATED
A Registered IiivestmeiihAdvisor
Date
10-24-07
10-24-07
10-25-07
10-25-07
11-01-07
11-01-07
11-02-07
11-05-07
11-05-07
11-05-07
11-05-07
11-12-07
11-12-07
11-12-07
11-12-07
11-13-07
11-13-07
11-19-07
11-21-07
11-23-07
11-26-07
11-27-07
11W40y
11-27-07
12-03-07
12-03-07
12-07-07
12-12-07
12-12-07
12-12-07
12-17-07
12-21-07
12-26-07
Longer Investments Inc.
REALIZED GAINS AND LOSSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Cost
Quantity Security Basis
12-31-07
TOTAL GAINS
TOTAL LOSSES
2,300
eBay hie.
2,970
St. Jude Medical Inc.
1,895
Eli Lilly & Co.
5,000
Symantec Corp.
2,250
Barclays PLC
275
ExxonMobil
1,585
Norfolk Southern Corp.
2,500
Bed Bath & Beyond hie.
2,575
Cintas Corp.
3,000
Disney Company
50
Google
4,245
Staples, hie.
1,200
International Business
Machines Corp.
2,500
Standard & Poors Depository
Receipts
1,650
iShares NASDAQ
Biotechnology
1,125
Schlumberger, LTD
1,000
Applied Materials Inc.
2,125
Ingersoll-Rand Co. Ltd.
4,350
Applied Materials Inc.
135,000
Federal Home Loan Bank
(Callable since 11-7-05 @
100, CC)
5.375% Due 11-07-13
1,150
Transocean Inc.
1,850
Standard & Poors Depository
Receipts
8,000
The Technology Select Sec
SPDR Fund
804
Transocean hie.
4,150
J.B. Hunt Transport Services
hie.
3,985
Seagate Technology
100,000
Federal Home Loan Bank
(Callable since 11-25-05 @
100, CC)
5.000% Due 05-25-11
1,500
Caterpillar hie.
1,675
Harley-Davidson, Inc.
1,400
United Technologies Corp.
5,135
Symantec Corp.
1,450
Financial Select Sector SPDR
Fund
350,000
Federal Home Loan Bank
(Callable 12-26-07 @ 100,
1X)
5.100% Due 12-26-08
1
Transocean hie.
k
81,539.93
115,456.67
105,448.98
96,793.45
94,109.71
15,145.60
81,948.94
85,179.50
92,197.10
77,164.87
26,580.29
93,151.82
124,836.80
365,327.75
135,601.13
107,031.94
16,084.70
107,915.58
69,968.45
135,000.00
33,418.00
264,087.50
204,974.68
77,774.78
100,204.75
102,285.26
100,000.00
109,629.15
81,740.67
108,616.20
93,737.88
42,962.76
350,000.00
Proceeds
81,188.75
117,313.20
99,727.20
92,084.58
106,731.84
24,593.01
79,137.83
79,623.77
89,098.78
101,504.04
36,251.71
89,482.79
122,701.48
365,745.15
136,509.84
103,108.94
18,309.81
101,849.68
78,186.57
135,000.00
37,984.50
262,130.07
202,738.49
108,801.16
108,484.31
101,409.12
100,000.00
109,725.12
76,303.62
108,404.82
84,613.74
42,107.21
350,000.00
Gain Or Loss
-351.18
1,856.53
-5,721.78
-4,708.87
12,622.13
9,447.41
-2,811.11
-5,555.73
-3,098.32
24,339.17
9,671.42
-3,669.03
-2,135.32
417.40
908.71
-3,923.00
2,225.11
-6,065.90
8,218.12
0.00
4,566.50
-1,957.43
-2,236.19
31,026.38
8,279.56
-876.14
0.00
95.97
-5,437.05
-211.38
-9,124.14
-855.55
52.24 79.35 27.11
637,172.33
-223,529.47
14,575,189.71 14,988,832.57 413,642.86
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Y^`
Longer Investments Inc.
REALIZED GAINS AND LOSSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Cost
Date Quantity Security Basis Proceeds Gain Or Loss
NO CAPITAL GAINS DISTRIBUTIONS
0
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Ex -Date Pay -Date Security Amount
Common Stock
i 01-08-07 02-01-07
01-10-07 02-01-07
01-18-07 02-20-07
01-29-07 02-12-07
02-01-07 02-23-07
02-05-07 03-01-07
02-05-07 02-21-07
02-07-07 03-10-07
02-07-07 03-09-07
02-13-07 03-08-07
02-13-07 03-01-07
02-13-07 03-02-07
02-14-07 03-12-07
02-14-07 03-09-07
02-14-07 03-01-07
02-21-07 03-12-07
02-22-07 04-25-07
02-23-07 03-13-07
02-26-07 03-15-07
02-26-07 03-15-07
02-28-07 03-23-07
03-05-07 03-29-07
03-07-07 04-02-07
03-12-07 03-28-07
03-13-07 03-30-07
03-13-07 04-01-07
03-14-07 04-02-07
03-16-07 03-30-07
-i 03-16-07 03-28-07
03-28-07 04-13-07
03-28-07 04-16-07
04-03-07 05-01-07
04-05-07 05-01-07
04-11-07 04-24-07
04-25-07 05-18-07
04-26-07 05-21-07
04-27-07 04-27-07
05-02-07 06-11-07
05-03-07 05-25-07
05-03-07 06-01-07
05-09-07 06-11-07
j 05-09-07 05-29-07
! 05-10-07 06-11-07
05-11-07 06-01-07
05-15-07 06-07-07
AT&T
BB & T Corp.
Caterpillar Inc.
Texas Instruments
Citigroup
Intel Corp.
J.B. Hunt Transport Services Inc.
International Business Machines Corp.
ExxonMobil
Applied Materials Inc.
Avon Products Inc.
Parker Hannifin Corp.
Chevron Corp.
Emerson Electric
Ingersoll-Rand Co. Ltd.
B.P. Amoco PLC A.D.S.
General Electric
Johnson & Johnson
Newell Rubbermaid Inc.
Time -Warner, Inc.
Bank of America Corp.
Newmont Mining Corporation
Northern Trust Corp.
Anadarko Petroleum Corp.
Devon Energy Corp.
Coca-Cola
Walmart Stores
Powershares Water Resource
Health Care Select Sector SPDR Fund
Cameco Corp.
US Bancorp
Bristol Myers Squibb
AT&T
Whole Foods Market, Inc.
Peabody Energy Corp
Texas Instruments
Barclays PLC
Norfolk Southern Corp.
Citigroup
Intel Corp.
Emerson Electric
J.B. Hunt Transport Services Inc.
ExxonMobil
Ingersoll-Rand Co. Ltd.
Applied Materials Inc.
VA
1,757.25
903.00
637.50
148.00
1,890.00
675.00
505.35
475.50
480.00
282.50
370.00
331.50
1,430.00
761.25
414.00
619.50
1,778.00
909.38
913.50
239.25
1,576.40
341.50
555.00
201.15
226.80
1,173.00
605.00
145.61
433.43
104.65
1,900.00
1,078.00
1,757.25
409.50
103.50
354.40
5,107.32
330.00
1,890.00
675.00
761.25
256.50
630.00
414.00
339.00
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
! Ex -Date
Pay -Date
Security
Amount
05-15-07
06-01-07
Parker Hannifin Corp.
331.50
05-16-07
06-01-07
Avon Products Inc.
370.00
05-16-07
06-11-07
Chevron Corp.
1,160.00
05-16-07
06-04-07
Walmart Stores
605.00
05-24-07
06-12-07
Johnson & Johnson
684.75
05-29-07
06-15-07
Time -Warner, Inc.
326.43
05-30-07
06-15-07
American International Group Inc.
326.70
05-30-07
06-22-07
Bank of America Corp.
1,576.40
06-05-07
06-05-07
Teva Pharmaceuticals
297.48
06-06-07
07-02-07
Northern Trust Corp.
555.00
06-12-07
06-29-07
Patterson -UTI Energy Inc.
411.00
06-13-07
06-29-07
Devon Energy Corp.
226.80
06-13-07
07-01-07
Coca-Cola
1,173.00
06-15-07
06-29-07
Powershares Water Resource
241.57
06-15-07
06-27-07
The Technology Select Sec SPDR Fund
11.51
06-15-07
06-27-07
Health Care Select Sector SPDR Fund
818.63
06-21-07
07-25-07
General Electric
1,778.00
06-26-07
07-06-07
Kraft Foods Inc.
787.50
06-27-07
07-13-07
Cameco Corp.
100.00
07-03-07
08-10-07
American Express Co.
333.75
07-06-07
08-01-07
AT&T
1,136.00
07-06-07
08-01-07
Verizon Communications
1,012.50
07-18-07
07-27-07
Goldcorp Inc.
48.53
07-27-07
08-30-07
Goldman Sachs Group Inc.
201.25
07-27-07
08-20-07
Texas Instruments
236.00
07-31-07
08-17-07
J.B. Hunt Transport Services Inc.
344.25
I 08-02-07
08-24-07
Citigroup
1,890.00
08-03-07
09-01-07
Intel Corp.
675.00
08-08-07
09-04-07
B.P. Amoco PLC A.D.S.
649.50
08-08-07
09-10-07
International Business Machines Corp.
440.00
08-09-07
09-10-07
ExxonMobil
630.00
08-14-07
09-06-07
Applied Materials Inc.
339.00
08-15-07
09-10-07
Chevron Corp.
1,160.00
08-15-07
09-10-07
Emerson Electric
761.25
08-15-07
08-24-07
Goldcorp Inc.
48.53
08-15-07
09-04-07
Wahnart Stores
412.50
08-17-07
09-17-07
Diamonds Trust Series I
373.55
08-23-07
09-07-07
Parker Hannifin Corp.
255.15
08-24-07
09-11-07
Johnson & Johnson
788.50
09-06-07
10-05-07
Kraft Foods Inc.
1,053.00
09-06-07
10-01-07
Northern Trust Corp.
500.00
09-06-07
09-06-07
Teva Pharmaceuticals
319.64
09-06-07
09-17-07
United Parcel Service Inc.
619.50
09-10-07
10-03-07
Amphenol Corp.
33.90
09-10-07
09-28-07
Patterson -UTI Energy Inc.
436.20
09-12-07
09-28-07
Devon Energy Corp.
178.50
0
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Ex -Date Pay -Date
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Security
Amount
09-12-07
10-01-07
Coca-Cola
850.00
09-20-07
10-25-07
General Electric
1,778.00
09-21-07
09-28-07
Powershares Water Resource
105.11
09-21-07
10-03-07
The Technology Select Sec SPDR Fund
105.10
10-01-07
10-01-07
Barclays PLC
1,857.10
10-05-07
11-01-07
AT&T
940.75
10-05-07
11-01-07
Verizon Communications
1,075.00
10-17-07
11-15-07
Procter & Gamble
665.00
10-31-07
11-16-07
Seagate Technology
398.50
11-05-07
12-01-07
Intel Corp.
675.00
11-07-07
11-30-07
Allergan Inc.
96.25
11-07-07
12-10-07
International Business Machines Corp.
480.00
11-07-07
12-10-07
ExxonMobil
533.75
11-08-07
12-03-07
Ingersoll-Rand Co. Ltd.
382.50
11-13-07
12-06-07
Applied Materials Inc.
321.00
11-13-07
11-29-07
J.B. Hunt Transport Services Inc.
373.50
11-13-07
12-13-07
Microsoft Corp.
495.00
11-13-07
11-30-07
Parker Hannifin Corp.
255.15
11-14-07
12-10-07
Chevron Corp.
1,160.00
11-14-07
12-10-07
Emerson Electric
667.50
11-20-07
12-06-07
Archer -Daniels -Midland Co.
316.25
11-23-07
12-11-07
Johnson & Johnson
1,099.75
11-28-07
12-15-07
Coca-Cola
850.00
11-29-07
11-29-07
Teva Pharmaceuticals
337.01
12-03-07
12-03-07
B.P. Amoco PLC A.D.S.
649.50
12-06-07
01-02-08
Northern Trust Corp.
560.00
12-10-07
01-02-08
Amphenol Corp.
42.90
12-12-07
12-28-07
Devon Energy Corp.
178.50
12-12-07
01-02-08
Walmart Stores
814.00
12-20-07
01-25-08
General Electric
1,802.65
12-21-07
01-04-08
Kraft Foods Inc.
1,053.00
12-21-07
12-31-07
Powershares Water Resource
139.54
12-21-07
01-03-08
Financial Select Sector SPDR Fund
2,353.41
12-21-07
01-03-08
Health Care Select Sector SPDR Fund
586.53
12-27-07
01-30-08
Dow Chemical Co.
1,050.00
88,593.26
Preferred Debt Securities
02-12-07
02-15-07
G.E.
Preferred 6.10% AAA/AAA (C 11-15-07)
762.50
03-23-07
03-28-07
G.E.
Preferred 6.625% AAA/AAA (C 6-28-07)
414.06
05-10-07
05-15-07
G.E.
Preferred 6.10% AAA/AAA (C 11-15-07)
476.56
06-25-07
06-28-07
G.E.
Preferred 6.625% AAA/AAA (C 6-28-07)
414.06
09-25-07
09-28-07
G.E.
Preferred 6.625% AAA/AAA (C 6-28-07)
414.06
12-24-07
12-28-07
G.E.
Preferred 6.625% AAA/AAA (C 6-28-07)
414.06
0
2,895.30
LONGER INVESTMENTS INCORPORATED
A Registered Investineiv Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Ex -Date Pay -Date Security
Mutual Funds -Equity
Amount
12-19-07
01-31-08
Thai Fund Inc.
264.38
12-24-07
01-04-08
iShares MSCI Hong Kong Index Fund
293.96
12-24-07
01-04-08
iShares MSCI Japan Index Fund
2,767.80
12-24-07
01-04-08
iShares MSCI Taiwan Index Fund
709.93
12-24-07
01-04-08
iShares S&P Europe 350 Index
11,749.58
12-26-07
01-15-08
Japan Smaller Capitalization Fund Inc.
12.60
15,798.25
Corporate Bonds
01-01-07
01-01-07
Cleve Electric/Toledo Ed. Aaa/AAA (NC) AMBAC YTM
1,782.50
7.30%
7.130% Due 07-01-07
03-01-07
03-01-07
Morgan Stanley Group Note AA3/A+ (NC)
2,578.13
6.875% Due 03-01-07
04-15-07
04-15-07
McDonald's Corp ANA (NC) 6.21% YTM
3,000.00
6.000% Due 04-15-11
04-15-07
04-15-07
Wells Fargo & Co. AA2/AA (NC)
5,000.00
6.250% Due 04-15-08
07-01-07
07-01-07
Cleve Electric/Toledo Ed. Aaa/AAA (NC) AMBAC YTM
1,782.50
7.30%
7.130% Due 07-01-07
10-15-07
10-15-07
McDonald's Corp ANA (NC) 6.21% YTM
3,000.00
6.000% Due 04-15-11
10-15-07
10-15-07
Wells Fargo & Co. AA2/AA (NC)
5,000.00
6.250% Due 04-15-08
22,143.13
Government Bonds
02-08-07 02-09-07 U. S. Treasury Note
1,101.73
6.625% Due 05-15-07
05-15-07 05-15-07 U. S. Treasury Note
3,843.75
5.125% Due 05-15-16
11-15-07 11-15-07 U. S. Treasury Note
3,843.75
5.125% Due 05-15-16
8,789.23
Government Agency
01-07-07 01-07-07 Federal Farm Credit Bank (NC) 3,375.00
6.750% Due 07-07-09
02-06-07 02-07-07 Federal Home Loan Bank (NC) 4,985.14
5.020% Due 09-14-07
02-11-07 02-11-07 Federal Farm Credit Bank (NC) 5.31% YTM 2,700.00
5.400% Due 02-11-09
io
LONGER INVESTMENTS INCORPORATED
A Registered InvestineW Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Ex -Date Pay -Date Security
Amount
02-15-07 02-15-07
Federal Home Loan Bank (NC)
1,312.50
5.250% Due 02-13-09
02-20-07 02-20-07
Federal Home Loan Bank (Callable since 2-20-04 @ 100, CC)
1,262.50
5.050% Due 02-20-13
02-24-07 02-24-07
Federal Home Loan Bank (C 8-24-07 @ 100, 1X)
6,210.00
5.520% Due 02-24-10
03-14-07 03-14-07
Federal Home Loan Mortgage Corp. (C 3-14-07 @ 100, 1X)
3,825.00
5.100% Due 03-14-08
03-14-07 03-14-07
Federal Home Loan Bank (NC)
65275.00
5.020% Due 09-14-07
03-15-07 03-15-07
Fed Nat'l Mortgage Assoc (Callable 9-15-08 @ 1005 1X)
25700.00
5.400% Due 09-15-11
04-03-07 04-03-07
Federal Home Loan Bank (Callable since 10-3-03 @ 100, CC)
1,058.33
5.080% Due 10-03-12
04-03-07 04-03-07
Fed Nat'l Mortgage Assoc (Callable 10-3-07 @ 100, 1X)
2,562.50
5.125% Due 10-03-08
04-05-07 04-05-07
Federal Home Loan Bank (Callable since 10-5-07 @ 100, CC)
6,250.00
5.000% Due 10-05-12
04-13-07 04-13-07
Federal Farm Credit Bank (Callable 10-13-09 @ 100, CC)
25540.00
5.080% Due 10-13-11
04-24-07 04-24-07
Fed Nat'l Mortgage Assoc (Callable 10-24-08 @ 100, quarterly)
3,000.00
6.000% Due 10-24-16
04-28-07 04-28-07
Federal Home Loan Mortgage Corp. (Callable 4-28-09 @ 1005
9,000.00
quarterly)
6.000% Due 04-28-16
05-06-07 05-06-07
Federal Farm Credit Bank (Callable since 11-6-06 @ 100, CC)
1,300.00
5.200% Due 11-06-13
05-07-07 05-07-07
Federal Home Loan Bank (Callable since 11-7-05 @ 100, CC)
3,628.13
5.375% Due 11-07-13
05-14-07 05-14-07
Federal Home Loan Bank (Callable 11-14-08 @ 100, 1X)
6,562.50
5.250% Due 11-14-12
05-15-07 05-15-07
Federal Home Loan Bank (NC)
15500.00
6.000% Due 05-13-11
05-15-07 05-15-07
Federal Home Loan Bank (NC)
3,937.50
5.250% Due 11-14-08
05-20-07 05-20-07
Federal Home Loan Bank (Callable 5-20-08 @ 100, 1X)
6,375.00
5.100% Due 11-20-09
05-25-07 05-25-07
Federal Home Loan Bank (Callable since 11-25-05 @ 100, CC)
2,500.00
5.000% Due 05-25-11
06-10-07 06-10-07
Federal Farm Credit Bureau (NC)
1,950.00
5.200% Due 12-10-08
06-12-07 06-12-07
Federal Home Loan Bank (Callable 12-12-08 @ 100, 1X)
6,275.00
5.020% Due 06-12-12
06-22-07 06-22-07
Federal Farm Credit Bank (Callable since 6-22-07 @ 100, CC)
3,312.50
5.300% Due 06-22-15
III
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Ex -Date Pay -Date Security
Amount
06-26-07 06-26-07
Federal Home Loan Bank (Callable 12-26-07 @ 100, 1X)
8,925.00
5.100% Due 12-26-08
06-29-07 06-29-07
Federal Farm Credit Bank (NC) 6.127% YTM
65125.00
6.125% Due 12-29-15
07-07-07 07-07-07
Federal Farm Credit Bank (NC)
3,375.00
6.750% Due 07-07-09
07-10-07 07-11-07
Federal Home Loan Bank (NC)
45078.75
5.020% Due 09-14-07
08-09-07 08-09-07
Federal Home Loan Bank (Callable 2-9-09 @ 100, 1X)
8,400.00
5.250% Due 02-09-11
08-11-07 08-11-07
Federal Farm Credit Bank (NC) 5.31% YTM
2,700.00
5.400% Due 02-11-09
08-15-07 08-15-07
Federal Home Loan Bank (NC)
1,312.50
5.250% Due 02-13-09
08-20-07 08-20-07
Federal Home Loan Bank (Callable since 2-20-04 @ 100, CC)
1,262.50
5.050% Due 02-20-13
08-24-07 08-24-07
Federal Home Loan Bank (C 8-24-07 @ 100, 1X)
6,210.00
5.520% Due 02-24-10
09-15-07 09-15-07
Fed Nat'l Mortgage Assoc (Callable 9-15-08 @ 100, 1X)
2,700.00
5.400% Due 09-15-11
10-03-07 10-03-07
Federal Home Loan Bank (Callable since 10-3-03 @ 100, CC)
1,058.33
5.080% Due 10-03-12
10-03-07 10-03-07
Federal Home Loan Bank (Callable 10-1-10 @ 100, 1X)
-27.78
5.000% Due 10-01-12
10-03-07 10-03-07
Fed Nat'l Mortgage Assoc (Callable 10-3-07 @ 100, 1X)
2,562.50
5.125% Due 10-03-08
10-05-07 10-05-07
Federal Home Loan Bank (Callable since 10-5-07 @ 100, CC)
6,250.00
5.000% Due 10-05-12
10-13-07 10-13-07
Federal Farm Credit Bank (Callable 10-13-09 @ 100, CC)
2,540.00
5.080% Due 10-13-11
10-13-07 10-13-07
Federal Home Loan Bank (Callable 4-13-09 @ 100, 1X)
1,631.50
5.020% Due 04-13-11
10-24-07 10-24-07
Fed Nat'l Mortgage Assoc (Callable 10-24-08 @ 100, quarterly)
3,000.00
6.000% Due 10-24-16
10-28-07 10-28-07
Federal Home Loan Mortgage Corp. (Callable 4-28-09 @ 100,
97000.00
quarterly)
6.000% Due 04-28-16
11-06-07 11-06-07
Federal Farm Credit Bank (Callable since 11-6-06 @ 100, CC)
1,300.00
5.200% Due 11-06-13
11-07-07 11-07-07
Federal Home Loan Bank (Callable since 11-7-05 @ 100, CC)
35628.13
5.375% Due 11-07-13
11-14-07 11-14-07
Federal Home Loan Bank (Callable 11-14-08 @ 1005 1X)
6,562.50
5.250% Due 11-14-12
11-15-07 11-15-07
Federal Home Loan Bank (NC)
1,500.00
6.000% Due 05-13-11
12
LONGER INVESTMENTS INCORPORATED
16 R Registered Irrvestinew Advisor
Ex -Date Pay -Date
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Security
Amount
11-15-07
11-15-07
Federal Home Loan Bank (NC)
3,937.50
5.250% Due 11-14-08
11-20-07
11-20-07
Federal Home Loan Bank (Callable 5-20-08 @ 100, 1X)
6,375.00
5.100% Due 11-20-09
11-23-07
11-23-07
Federal Home Loan Bank (Callable since 11-7-05 @ 100, CC)
322.50
5.375% Due 11-07-13
11-25-07
11-25-07
Federal Home Loan Bank (Callable since 11-25-05 @ 100, CC)
2,500.00
5.000% Due 05-25-11
12-07-07
12-07-07
Federal Home Loan Bank (Callable since 11-25-05 @ 100, CC)
166.67
5.000% Due 05-25-11
12-10-07
12-10-07
Federal Farm Credit Bureau (NC)
1,950.00
5.200% Due 12-10-08
12-12-07
12-12-07
Federal Home Loan Bank (Callable 12-12-08 @ 100, 1X)
6,275.00
5.020% Due 06-12-12
12-22-07
12-22-07
Federal Farm Credit Bank (Callable since 6-22-07 @ 100, CC)
3,312.50
j
5.300% Due 06-22-15
12-26-07
12-26-07
Federal Home Loan Bank (Callable 12-26-07 @ 100, 1X)
8,925.00
5.100% Due 12-26-08
j 12-29-07
12-29-07
Federal Farm Credit Bank (NC) 6.127% YTM
6,125.00
6.125% Due 12-29-15
218,379.70
i
Treasury
Bills
09-27-07
09-27-07
U. S. Treasury Bill Due 9-27-07 4.684% YTM
860.62
12-06-07
12-06-07
U. S. Treasury Bill Due 12-6-07 3.85% YTM
1,155.00
2,015.62
Alternative Investments
12-24-07
12-31-07
Market Vectors Gold Miners
2,533.00
2,533.00
Cash and
Equivalents
01-31-07
01-31-07
Money Market
1,552.85
02-28-07
02-28-07
Money Market
786.77
03-31-07
03-31-07
Money Market
1,195.56
04-30-07
04-30-07
Money Market
402.08
05-31-07
05-31-07
Money Market
366.69
06-30-07
06-30-07
Money Market
221.61
07-31-07
07-31-07
Money Market
679.98
08-31-07
08-31-07
Money Market
2,159.66
09-30-07
09-30-07
Money Market
827.64
10-31-07
10-31-07
Money Market
848.00
11-30-07
11-30-07
Money Market
1,111.01
12-31-07
12-31-07
Money Market
138.62
13
Lb LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
Ea -Date Pay -Date
12-31-07 12-31-07 Money Market
EXPENSE ACCOUNTS
01-31-07
01-31-07
Automated Cash Mgmt.
01-31-07
01-31-07
Northern Trust Fee
02-28-07
02-28-07
Automated Cash Mgmt.
02-28-07
02-28-07
Northern Trust Fee
03-30-07
03-30-07
Northern Trust Fee
03-31-07
03-31-07
Automated Cash Mgmt.
04-13-07
04-13-07
Foreign Tax on Dividends
04-30-07
04-30-07
Automated Cash Mgmt.
04-30-07
04-30-07
Northern Trust Fee
05-31-07
05-31-07
Automated Cash Mgmt.
05-31-07
05-31-07
Northern Trust Fee
06-05-07
06-05-07
Foreign Tax on Dividends
06-29-07
06-29-07
Northern Trust Fee
06-30-07
06-30-07
Automated Cash Mgmt.
07-13-07
07-13-07
Foreign Tax on Dividends
07-27-07
07-27-07
Foreign Tax on Dividends
07-31-07
07-31-07
Automated Cash Mgmt.
07-31-07
07-31-07
Northern Trust Fee
08-24-07
08-24-07
Foreign Tax on Dividends
08-31-07
08-31-07
Automated Cash Mgmt.
08-31-07
08-31-07
Northern Trust Fee
09-06-07
09-06-07
Foreign Tax on Dividends
09-28-07
09-28-07
Northern Trust Fee
09-30-07
09-30-07
Automated Cash Mgmt.
10-31-07
10-31-07
Automated Cash Mgmt.
10-31-07
10-31-07
Northern Trust Fee
11-29-07
11-29-07
Foreign Tax on Dividends
11-30-07
11-30-07
Automated Cash Mgmt.
11-30-07
11-30-07
Northern Trust Fee
12-31-07
12-31-07
Automated Cash Mgmt.
12-31-07
12-31-07
Automated Cash Mgmt.
12-31-07
12-31-07
Northern Trust Fee
MANAGEMENT FEES
01-08-07
01-08-07
Management Fee
04-09-07
04-09-07
Management Fee
07-09-07
07-09-07
Management Fee
10-11-07
10-11-07
Management Fee
14
Amount
1,617.23
11,907.70
,..
473.34
24.73
456.41
481.89
37.43
15.70
12.79
461.99
11.64
483.83
47.60
484.48
7.06
15.00
7.28
21.57
486.49
7.28
68.70
455.99
51.14
463.86
26.48
28.95
481.33
55.61
39.89
478.65
5.06
61.16
451.38
6,253.53
20,619.36
20,230.83
20,500.34
20,701.51
82,052.04
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
Ex -Date Pay -Date
NET INCOME
Longer Investments Inc.
INCOME AND EXPENSES
City of Fayetteville Police Pension Fund
From 01-01-07 Through 12-31-07
15
Amount
284,749.62
LONGER INVESTMENTS INCORPORATED
16 A Registered Investment Advisor