HomeMy WebLinkAbout2015-10-29 - Agendas - Final Firemen's Pension and Relief Fund
October 29,2015
Page 1 of 81
Lioneld Jordan Chairman Pete Reagan Position 2 Retired
Sondra E.Smith Secretary Dennis Mullens Position 3 Retired
Roy Cate Position 1 Retired " Ron Wood Position 4 Retired
Firemen's Pension and Relief Fund
Board of Trustees Meeting Agenda
October 29, 2015
A meeting of the Fayetteville Firemen's Pension and Relief Fund Board of Trustees will be
held at 3:00 p.m. on October 29, 2015 in Room 326 of the City Administration Building.
Call to Order
Roll Call
Garrison Financial:
• 3rd Quarter Reports
Approval of the Minutes:
• Approval of the August 6, 2015 Meeting Minutes
• Approval of the September 30, 2015 Special Meeting Minutes
Pension List Changes:
• None
Approval of the Pension List:
• Approval of the November and December 2015 and January 2016 Pension Lists
Unfinished Business:
• None
New Business:
• Revenue and Expense Report 09/30/15
• City Attorney Memo's to City Council regarding transferring the Firemen's Pension
fund to LOPFI.
• Ordinance 1136
• NCPERS Letter dated July 2015
Informational:
0 2016 Meeting Schedule
Fayetteville Fireman's Pension and Relief Fund
Meeting Date ��:1 1)kJ, � �� /�
Adjourn Time ARCH 1VED
Attendees:
Subject: Subject: '
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Motion By: Motion B
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Seconded: Seconded:
Roy Cate .::2t/ Roy Cate ►�
Mayor Jordan Mayor Jordan
Dennis Mullens Dennis Mullens t/
Pete Reagan Pete Reagan p/
Sondra Smith `� j Sondra Smith l�
*'Ronnie Wood Ronnie Wood
Subject:
6, a 0 S Subject: J-Pt
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A
Motion B : T �� Motion B
Seconded: ,&t Seconded:
Roy Cate +•� Roy Cate
Mayor Jordan Mayor Jordan
Dennis Mullens Dennis Mullens d/
Pete Reagan v' Pete Reagan t/
Sondra Smith v Sondra Smith
Ronnie Wood
Ronnie Wood �/
Firemen's Pension and Relief Fund
October 29,2015
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Firemen's Pension and Relief Fund
October 29,2015
GArMRISON RECEIVPaqe ED of 81
F I N A N C I A L OCT 132015
0TY OF October 6, 2015
CITY CLERK'S oFFiCE�
Ms. Sondra Smith
City of Fayetteville
113 West Mountain Street
Fayetteville, Arkansas 72701
Dear Ms.Smith,
Enclosed are the quarterly reports for both Firemen's Pension & Relief Fund and Police Pension and Relief
Fund for the quarter ended September 30, 2015.
Uncertainty about Fed policy, woes in China, and sliding commodity prices weighed heavily on the equity
markets in the third quarter, bringing about the long awaited correction that had eluded stocks for almost 4
years.
Global growth concerns took center stage as China's economy continues to slow. The Chinese government
took the markets by surprise in August devaluing the yuan in an effort to prop up the sliding stock market
and aid the slumping manufacturing sector. In spite of the currency move, in addition to other measures
like outright purchases of securities and halting trading,the Shanghai Composite still lost more than 25%
during the quarter.
The Fed also added to the uncertainty in the quarter, as the prospect of rising rates weighed on investors'
minds. The U.S. economy remains steady, with good data one week and bad the next, but the Fed decided
to keep rates unchanged in September. Rather than the equity markets cheering low rates, they sold off
sharply after the Fed's decision, shining an even bigger spotlight on China and global growth concerns.
Commodities took the worst hit as China has accounted for the much of the demand now for several years.
Unsurprisingly, energy and the materials sector were yet again the worst performers in the quarter with
energy down-18%and materials off-17%. Healthcare,which has been one of the bright spots in the
market the past few years,was also down-11%during the quarter. The only positive sector in the quarter
was the interest rate sensitive Utilities which gained+4.4%after retreating earlier in the year.
The fixed income market for the quarter(as measured by the Barclays Intermediate Government/Credit
Index)was up+.95%, bringing year-to-date performance to +1.77%and trailing twelve month performance
to +2.68%. Yields (as measured by the market proxy of the 10 year Treasury Bond)for the quarter were
down (prices up) from around 2.35%to 2.04%, having peaked in early July at 2.46% and troughed at an
even 2.00% in mid-August. Year-to-date rates are down about.15%. For the year ended September, rates
are down .45%.
Garrison Financial
605 W. Dickson Street, Suite 201 •Fayetteville, Arkansas 72701
479-587-1045 • 888-442-7637. 479-587-1257 Facsimile•www.GarrisonFinancial.com
Firemen's Pension and Relief Fund
y October 29,2015
Page 4 of 81
Volatility spiked in the quarter as the markets grappled with global slowing. The equity markets finally
registered a 10%correction and earnings are expected to head south due in large part to the turmoil in
the commodities complex and the strong dollar. Although we do not believe a global recession is in the
offing at this juncture, we do believe those headwinds, in addition to other economic concerns around
the globe, will keep economic growth muted and interest rates low for the near term. We continue to
focus our investments in strong companies we believe will deliver over the long-term and can withstand
the ebbs and flows of the economic backdrop around the world.
We've included a recent article written by James Bell for the Arkansas Business Journal regarding stock
market corrections. We thought it might be of interest given the recent movements in the market.
Please call the office if you should have any questions.
Cordially,
Kerry Bradley, CFA, MBA
Equity Portfolio Manager
Garrison Financial
605 W.Dickson Street, Suite 201 •Fayetteville,Arkansas 72701
479-587-1045 • 888-442-7637. 479-587-1257 Facsimile• www.GarrisonFinancial.com
' Firemen's Pension and Relief Fund
October 29,2015
Page 5 of 81
r
Are Investors Haunted by Corrections Past?
It finally happened. After nearly four years,stocks suffered a correction in late August. Sure, it hurts to
lose money,just like it always does. But I'm a numbers guy, so I find it helpful to review the historical
record for the frequency and severity of such events, and more importantly, what to expect on the other
side.
From its all-time high on May 21 to its recent low on August 25,the S&P 500 declined 12.35%against a
backdrop of China's currency devaluation, emerging markets weakness, and the potential for the
Federal Reserve to finally raise short term rates from essentially zero. A lot of headlines were written
about stocks officially entering correction territory. A correction is generally defined as a selloff of 10%
or more,while declines of 20% or greater are termed bear markets. For simplicity, I will refer to any
decline of 10%or greater as a correction.
A review of market history from Yardeni Research shows 32 prior declines of 10%or more since 1945,
ranging from those that barely qualify to the oil shock of the early 1970s (-48%), the tech bubble
bursting in 2000(-49%), and we all remember the financial crisis around 2008 (-56%). Obviously not
every correction leads to such ominous outcomes. On average, in the postwar period we have seen a
correction just over every two years. There is no discernible pattern to timing or frequency, with eight
corrections in the 1970s versus just two in the 1990s. The average percentage decline is-21%, though
individual instances are highly variable. From peak to trough,the duration of corrections is also highly
variable. Average duration is 231 days,with some instances as quick as a few weeks and others longer
than a year including the two-and-a-half year tech correction that ended in October 2002.
So given that corrections happen fairly regularly, and are by definition severe,why does the recent
selloff feel so jarring? In part, I think investors may have been spoiled by the recent market. As noted, it
has been nearly four years since the previous correction, longer than the two year average. Even that
correction, beginning around August 2011 with the backdrop of S&P downgrading US Treasury debt
from AAA, was mainly contained to a brief two months and quickly put in the rear view mirror. 2014
concluded as the sixth consecutive calendar year of positive returns (including dividends). It's easy to
see how the potential for a correction may have been shuttled to the back of the mind. Other investors,
with the memories of the severe bear markets of 2000 and 2008 still fresh, are quick to conclude that
any selloff may be the harbinger of something far worse. Having invested through those years myself,
that concern is understandable.
Part of a financial advisor's job is education. Any discussion about the long-term positive average
returns of stocks, bonds, real estate, or any asset class, should include the fact that those returns don't
arrive smoothly,year in and year out. History demonstrates the certainty of unpredictable periods of
decline with indeterminate length and severity. Academic research, and our own experience, have
convinced me that there is no reliable way of predicting and avoiding these corrections, at least without
substantially altering your risk profile. Note that avoiding corrections requires two accurate calls:
identifying the peak to sell,then the bottom to reinvest, plus the drag of friction,transaction costs, and
Firemen's Pension and Relief Fund
October 29,2015
Page 6 of 81
w
taxes. I know there are dozens of ways to make money in the markets, but I would be skeptical of
anyone who claims to reliably avoid corrections.
What does a stock market correction mean for the broader economy? Since stock prices reflect
investors' opinions about earnings and growth,the economy, interest rates, and enthusiasm,declining
prices necessarily signal a net decline in at least some of those factors,although it is very difficult to
attribute which ones. S&P points out that all 11 postwar recessions were preceded by a correction,
anticipated by an average of seven months. Unfortunately, corrections also produced a lot of false
positives for recessions, providing an accurate forecast only 35%of the time. A correction is more of a
yellow light, encouraging us to pay closer attention to our economic assumptions. Most corrections
pass without a sustained contraction in economic growth. Bear markets have been more reliable
recession predictors(67%).
For an investor, the key is to acknowledge the likelihood of correction periods, then focus on the long
term. Corrections come with the territory of equity investments, and the volatility they represent are
part of the price of the higher long-term returns that stocks have historically provided. The discipline to
stay invested through the downturns is often the sign of a successful investor. Keep in mind,stocks
have recovered and then exceeded every prior correction, and I would not expect the current situation
to end any differently.
James Bell is a VP and financial advisor at Garrison Financial, a locally owned independent investment
advisory firm. He can be reached at ibell@garrisonfinancial.com.
Firemen's Pension and Relief Fund
October 29,2015
Page 7 of 81
0001,
GD D ISON
A1\1\.
F I N A N C I A L
City of Fayetteville Police Pension and Relief Fund
Charles Schwab #2448-5630
Quarter Ending September 30, 2015
Firemen's Pension and Relief Fund
October 29,2015
Page 8 of 81
PORTFOLIO SUMMARY
City of Fayetteville Police Pension and Relief Fund
Charles Schwab #2448-5630
September 30, 2015
4.9%
Cash & Equivalents 298,453.13
■Account Fixed Income 2,279,635.06
11 Account Equities 3,524,576.12
Firemen's Pension and Relief Fund
October 29,2015
Page 9 of 81
Garrison Financial
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension and Relief Fund
Charles Schwab #2448-5630
September 30, 2015
Adj Unit Total Adjusted Market Pct. Unit Annual
Quantity Security Cost Cost Price Value Assets Income Income Yield
CASH AND EQUIVALENTS
Schwab.Advisor Cash Res- 298,453.13 298,453.13 4.9 0.010 29.85 0.0
Premier
298,453.13 298,453.13 4.9 29.85 0.0
TREASURY NOTE
700,000 US Treasury Note 101.33 709,287.07 108.89 762,216.00 12.5 4.000 28,000.00 0.9
4.000%Due 08-15-18
Accrued Interest 3,500.00 0.1
709,287.07 765,716.00 12.5 28,000.00 0.9
AGENCY BONDS
200,000 Federal Farm Credit 100.00 199,998.39 101.45 202,898.00 3.3 6.125 12,250.00 0.3
Bank
6.125%Due 12-29-15
Accrued Interest 3,096.53 0.1
199,998.39 205,994.53 3.4 12,250.00 0.3
CORPORATE BONDS
125,000 Verizon 99.95 124,939.50 99.86 124,824.87 2.0 1.350 1,687.50 1.4
Communications
1.350%Due 06-09-17
125,000 Lab Corp.of America 100.94 126,171.41 101.11 126,387.87 2.1 2.500 3,125.00 2.1
2.500%Due 11-01-18
125,000 Kroger Company 100.18 125,229.73 100.57 125,714.12 2.1 2.300 2,875.00 2.1
2.300%Due 01-15-19
125,000 Honeywell International 110.45 138,060.80 111.04 138,796.62 2.3 5.000 6,250.00 1.6
5.000%Due 02-15-19
125,000 Union Pacific Corp. 101.41 126,764.76 101.55 126,943.00 2.1 2.250 2,812.50 1.8
2.250%Due 02-15-19
125,000 J B Hunt Transportation 101.58 126,980.65 100.81 126,016.37 2.1 2.400 3,000.00 2.2
Svcs.
2.400%Due 03-15-19
125,000 Wait Disney Co. 99.91 124,885.09 100.64 125,798.87 2.1 1.850 2,312.50 1.7
1.850%Due 05-30-19
125,000 Berkshire Hathaway 105.44 131,798.95 103.84 129,794.87 2.1 2.900 3,625.00 2.1
Financial
2.900%Due 10-15-20
125,000 AT&T,Inc. 100.45 125,556.36 98.14 122,676.37 2.0 3.000 3,750.00 3.4
3.000%Due 02-13-22
Accrued Interest 6,571.53 0.1
1,150,387.26 1,153,524.53 18.9 29,437.50 2.0
CONVERTIBLE PREFERRED
300 Bunge 4.875%Conv. 108.63 32,588.95 98.13 29,439.00 0.5 4.875 1,462.50 5.0
Pfd.
32,588.95 29,439.00 0.5 1,462.50 5.0
COMMON STOCK
300 3M Corp. 164.93 49,479.55 141.77 42,531.00 0.7 4.100 1,230.00 2.9
2,000 AT&T,Inc. 28.24 56,475.88 32.58 65,160.00 1.1 1.880 3,760.00 5.8
905 AbbVie,Inc. 66.58 60,253.90 54.41 49,241.05 0.8 2.040 1,846.20 3.7
1,965 Abbott Laboratories 40.06 78,727.14 40.22 79,032.30 1.3 0.960 1,886.40 2.4
550 Accenture Plc. 90.81 49,943.51 98.26 54,043.00 0.9 2.200 1,210.00 2.2
440 Airgas,Inc. 112.76 49,614.11 89.33 39,305.20 0.6 2.400 1,056.00 2.7
120 Alliance Data Systems 283.98 34,077.36 258.98 31,077.60 0.5 0.000 0.00 0.0
1
Firemen's Pension and Relief Fund
October 29,2015
Page 10 of 81
Garrison Financial
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension and Relief Fund
Charles Schwab #2448-5630
September 30, 2015
Adj Unit Total Adjusted Market Pct. Unit Annual
Quantity Security Cost Cost Price Value Assets Income Income Yield
625 Amgen,Inc. 114.33 71,456.06 138.32 86,450.00 1.4 3.160 1,975.00 2.3
825 Anadarko Petroleum 85.82 70,805.10 60.39 49,821.75 0.8 1.080 891.00 1.8
500 Ansys,Inc. 75.67 37,836.95 88.14 44,070.00 0.7 0.000 0.00 0.0
1,680 Apple Computer 72.69 122,121.54 110.30 185,304.00 3.0 2.080 3,494.40 1.9
785 AptarGroup,Inc. 63.47 49,825.05 65.96 51,778.60 0.8 1.120 879.20 1.7
125 AutoZone,Inc. 516.09 64,511.70 723.83 90,478.75 1.5 0.000 0.00 0.0
1,350 BCE,Inc.CI F 24.40 32,934.20 40.96 55,296.00 0.9 2.630 3,550.50 6.4
350 Becton,Dickinson& 113.97 39,889.45 132.66 46,431.00 0.8 2.400 840.00 1.8
Company
1,500 Broadridge Financial 41.33 62,000.35 55.35 83,025.00 1.4 1.200 1,800.00 2.2
Solutions
675 Brown-Forman Corp. 88.81 59,946.93 96.90 65,407.50 1.1 1.260 850.50 1.3
665 CH Robinson 74.84 49,768.25 67.78 45,073.70 0.7 1.520 1,010.80 2.2
Worldwide
3,000 CSX Corporation 28.88 86,627.40 26.90 80,700.00 1.3 0.720 2,160.00 2.7
1,300 Cal-Maine Foods,Inc. 36.68 47,687.88 54.61 70,993.00 1.2 1.010 1,313.00 1.8
585 Check Point Software 85.44 49,979.59 79.33 46,408.05 0.8 0.000 0.00 0.0
400 Chevron Corporation 85.21 34,084.61 78.88 31,552.00 0.5 4.280 1,712.00 5.4
2,800 Cisco Systems,Inc. 19.70 55,168.69 26.25 73,500.00 1.2 0.840 2,352.00 3.2
1,400 Coca-Cola Company 30.98 43,374.60 40.12 56,168.00 0.9 1.320 1,848.00 3.3
680 Compass Minerals Int'I 87.89 59,765.06 78.37 53,291.60 0.9 2.640 1,795.20 3.4
1,150 ConocoPhillips 55.58 63,918.42 47.96 55,154.00 0.9 2.960 3,404.00 6.2
565 Deere&Co. 87.76 49,585.72 74.00 41,810.00 0.7 2.400 1,356.00 3.2
500 Disney,Walt Holdings 110.91 55,454.90 102.20 51,100.00 0.8 1.320 660.00 1.3
2,000 EMC Corp. 25.64 51,282.21 24.16 48,320.00 0.8 0.460 920.00 1.9
830 Eastman Chemical 86.14 71,495.64 64,72 53,717.60 0.9 1.600 1,328.00 2.5
1,310 Emerson Electric 68.00 89,080.00 44.17 57,862.70 0.9 1.880 2,462.80 4.3
3,825 General Electric Co. 19.53 74,709.32 25.22 96,466.50 1.6 0.920 3,519.00 3.6
1,200 GlaxoSmithKlinePlc. 50.10 60,124.15 38.45 46,140.00 0.8 2.290 2,748.00 6.0
2,250 Intel Corp. 20.53 46,202.71 30.14 67,815.00 1.1 0.960 2,160.00 3.2
800 Johnson&Johnson 64.70 51,756.60 93.35 74,680.00 1.2 3.000 2,400.00 3.2
465 Kimberly Clark Corp. 107.07 49,786.64 109.04 50,703.60 0.8 3.520 1,636.80 3.2
395 Laboratory Corp. 125.86 49,715.75 108.47 42,845.65 0.7 0.000 0.00 0.0
1,000 Lincoln Electric 67.21 67,209.18 52.43 52,430.00 0.9 1.160 1,160.00 2.2
640 Medtronic Plc. 77.60 49,662.77 66.94 42,841.60 0.7 1.520 972.80 2.3
1,100 Merck&Co.,Inc. 51.39 56,525.78 49.39 54,329.00 0.9 1.800 1,980.00 3.6
800 National Oilwell Varco 85.35 68,280.15 37.65 30,120.00 0.5 1.840 1,472.00 4.9
1,000 Patterson Companies 51.07 51,074.75 43.25 43,250.00 0.7 0.880 880.00 2.0
530 Pepsico,Inc. 93.75 49,690.09 94.30 49,979.00 0.8 2.810 1,489.30 3.0
830 Phillips 66 72.18 59,911.86 76.84 63,777.20 1.0 2.240 1,859.20 2.9
1,000 Procter&Gamble Co. 59.42 59,417.61 71.94 71,940.00 1.2 2.650 2,650.00 3.7
1,000 Qualcomm,Inc. 63.62 63,616.39 53.73 53,730.00 0.9 1.920 1,920.00 3.6
2,790 Raven Industries,Inc. 28.37 79,148.48 16.95 47,290.50 0.8 0.520 1,450.80 3.1
700 Sanofi ADR 55.71 38,995.10 47.47 33,229.00 0.5 1.320 924.00 2.8
770 Sensient Technologies 64.55 49,704.67 61.30 47,201.00 0.8 1.080 831.60 1.8
900 St.Jude Medical,Inc. 66.56 59,900.53 63.09 56,781.00 0.9 1.160 1,044.00 1.8
1,055 Syngenta AG ADR 71.44 75,370.40 63.78 67,287.90 1.1 1.970 2,078.35 3.1
850 Texas Instruments 58.53 49,754.69 49.52 42,092.00 0.7 1.520 1,292.00 3.1
465 Valmont Industries 128.60 59,797.26 94.89 44,123.85 0.7 1.500 697.50 1.6
450 Wabtec Corp. 93.64 42,137.64 88.05 39,622.50 0.6 0.320 144.00 0.4
1,150 Wal-Mart Stores,Inc. 62.11 71,423.42 64.84 74,566.00 1.2 1.960 2,254.00 3.0
2,000 Waste Management 42.21 84,414.32 49.81 99,620.00 1.6 1.540 3,080.00 3.1
3,265,502.02 3,276,964.70 53.7 88,234.35 2.7
MUTUAL FUNDS
2,248.991 Dodge&Cox Intl Stk 45.41 102,132.74 37.02 83,257.65 1.4 0.970 2,181.52 2.6
2
Firemen's Pension and Relief Fund
October 29,2015
Page 11 of 81
Garrison Financial
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension and Relief Fund
Charles Schwab #2448-5630
September 30, 2015
Adj Unit Total Adjusted Market Pct. Unit Annual
Quantity Security Cost Cost Price Value Assets Income Income Yield'
2,587.463 Oppenheimer 39,33 101,776.46 29.18 75,502.17 1.2 0.100 258.75 0.3
Developing Mkts A
203,909.20 158,759.82 2.6 2,440.27 1.5
UNIT TRUSTS
2,340 FT Energy Income& 34.20 80,032.95 25.39 59,412.60 1.0 2.220 5,194.80 8.7
Growth
4,000 iShares S&P US Pfd Stk 38.34 153,340.30 38.60 154,400.00 2.5 2.380 9,520.00 6.2
233,373.25 213,812.60 3.5 14,714.80 6.9
TOTAL PORTFOLIO 6,093,499.27 6,102,664.30 100.0 176,569.26 2.3
'ou should carefully compare this statement to the statement you receive from your custodian and notify us immediately of any discrepancies.
3
Firemen's Pension and Relief Fund
October 29,2015
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Garrison Financial
PURCHASE AND SALE
City of Fayetteville Police Pension and Relief Fund
Charles Schwab #2448-5630
From 01-01-15 To 09-30-15
Trade Settle Unit
Date Date Quantity Security Price Amount
PURCHASES
03-19-15 03-24-15 300 3M Corp. 164.93 49,479.55
03-24-15 03-27-15 125,000 AT&T,Inc. 100.48 125,597.62
3.000%Due 02-13-22
03-19-15 03-24-15 550 Accenture Plc. 90.81 49,943.51
03-19-15 03-24-15 200 Airgas,Inc. 112.76 22,551.87
03-19-15 03-24-15 100 Airgas,Inc. 112.76 11,275.93
03-19-15 03-24-15 140 Airgas,Inc. 112.76 15,786.31
03-19-15 03-24-15 785 AptarGroup,Inc. 63.47 49,825.05
03-24-15 03-27-15 125,000 Berkshire Hathaway Financial 105.98 132,470.38
2.900%Due 10-15-20
03-19-15 03-24-15 200 CH Robinson Worldwide 74.85 14,970.69
03-19-15 03-24-15 100 CH Robinson Worldwide 74.83 7,483.35
03-19-15 03-24-15 365 CH Robinson Worldwide 74.83 27,314.21
03-10-15 03-13-15 1,300 Cal-Maine Foods,Inc. 36.68 47,687.88
03-19-15 03-24-15 585 Check Point Software 85.44 49,979.59
03-19-15 03-24-15 565 Deere&Co. 87.76 49,585.72
06-04-15 06-09-15 500 Disney,Walt Holdings 110.91 55,454.90
03-19-15 03-24-15 100 FT Energy Income&Growth 34.18 3,418.38
03-19-15 03-24-15 100 FT Energy Income&Growth 34.18 3,418.38
03-19-15 03-24-15 100 FT Energy Income&Growth 34.20 3,420.38
03-19-15 03-24-15 140 FT Energy Income&Growth 34.20 4,788.54
03-19-15 03-24-15 60 FT Energy Income&Growth 34.20 2,052.23
03-19-15 03-24-15 20 FT Energy Income&Growth 34.20 684.08
03-19-15 03-24-15 100 FT Energy Income&Growth 34.20 3,420.38
03-19-15 03-24-15 900 FT Energy Income&Growth 34.20 30,783.44
03-19-15 03-24-15 100 FT Energy Income&Growth 34.20 3,420.38
03-19-15 03-24-15 300 FT Energy Income&Growth 34.20 10,261.15
03-19-15 03-24-15 300 FT Energy Income&Growth 34.20 10,261.15
03-19-15 03-24-15 100 FT Energy Income&Growth 34.20 3,420.38
03-19-15 03-24-15 20 FT Energy Income&Growth 34.20 684.08
05-08-15 05-13-15 125,000 J B Hunt Transportation Svcs. 101.76 127,201.62
2.400%Due 03-15-19
03-19-15 03-24-15 100 Kimberly Clark Corp. 107.07 10,706.72
03-19-15 03-24-15 100 Kimberly Clark Corp. 107.07 10,706.82
03-19-15 03-24-15 65 Kimberly Clark Corp. 107.07 6,959.44
03-19-15 03-24-15 100 Kimberly Clark Corp. 107.07 10,706.82
03-19-15 03-24-15 100 Kimberly Clark Corp. 107.07 10,706.84
03-19-15 03-24-15 395 Laboratory Corp. 125.86 49,715.75
03-19-15 03-24-15 640 Medtronic Plc. 77.60 49,662.77
01-28-15 02-02-15 1,000 Patterson Companies 51.07 51,074.75
03-19-15 03-24-15 530 Pepsico,Inc. 93.75 49,690.09
03-19-15 03-24-15 770 Sensient Technologies 64.55 49,704.67
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Firemen's Pension and Relief Fund
October 29,2015
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Garrison Financial
PURCHASE AND SALE
City of Fayetteville Police Pension and Relief Fund
Charles Schwab #2448-5630
From 01-01-15 To 09-30-15
Trade Settle Unit
Date Date Quantity Security Price Amount
03-19-15 03-24-15 850 Texas Instruments 58.53 49,754.69
03-12-15 03-17-15 450 Wabtec Corp. 93.64 42,137.64
1,308,168.13
SALES
03-19-15 03-24-15 2,000 Alerian MLP 16.34 32,676.02
03-19-15 03-24-15 3,000 Alerian MLP 16.34 49,014.03
05-07-15 05-12-15 200 Cisco Systems,Inc. 28.81 5,762.90
05-07-15 05-12-15 1,300 Cisco Systems,Inc. 28.81 37,458.85
03-19-15 03-24-15 100 Ensco Plc. 20.62 2,061.55
03-19-15 03-24-15 250 Ensco Plc. 20.62 5,153.88
03-19-15 03-24-15 300 Ensco Plc. 20.62 6,184.66
03-19-15 03-24-15 300 Ensco Plc. 20.62 6,184.66
03-19-15 03-24-15 800 Ensco Plc. 20.61 16,491.60
03-19-15 03-24-15 100 Freeport-McMoRan Copper&Gold, 17.20 1,720.02
Inc.
03-19-15 03-24-15 200 Freeport-McMoRan Copper&Gold, 17.20 3,440.04
Inc.
03-19-15 03-24-15 100 Freeport-McMoRan Copper&Gold, 17.20 1,720.02
Inc.
03-19-15 03-24-15 100 Freeport-McMoRan Copper&Gold, 17.20 1,720.02
Inc.
03-19-15 03-24-15 100 Freeport-McMoRan Copper&Gold, 17.20 1,720.02
Inc.
03-19-15 03-24-15 100 Freeport-McMoRan Copper&Gold, 17.20 1,720.02
Inc.
03-19-15 03-24-15 100 Freeport-McMoRan Copper&Gold, 17.20 1,720.02
Inc.
03-19-15 03-24-15 100 Freeport-McMoRan Copper&Gold, 17.20 1,720.02
Inc.
03-19-15 03-24-15 1,100 Freeport-McMoRan Copper&Gold, 17.20 18,915.85
Inc.
05-07-15 05-12-15 250 Intel Corp. 32.32 8,080.37
05-07-15 05-12-15 750 Intel Corp. 32.32 24,241.09
05-07-15 05-12-15 450 Johnson&Johnson 99.86 44,938.97
03-19-15 03-24-15 5,650 Keycorp 14.41 81,406.62
05-08-15 05-13-15 635 McDonald's Corp. 98.51 62,554.99
04-08-15 04-13-15 150 Microsoft Corp. 41.35 6,201.93
04-08-15 04-13-15 2,675 Microsoft Corp. 41.35 110,601.00
03-19-15 03-24-15 1,750 Noble Corp. 13.53 23,685.79
04-08-15 04-13-15 50 Pfizer,Inc. 34.66 1,732.85
04-08-15 04-13-15 3,600 Pfizer,Inc. 34.66 124,765.24
03-19-15 03-24-15 2,000 Sector SPDR Fncl Select Shs 24.41 48,818.36
2
Firemen's Pension and Relief Fund
October 29,2015
Page 14 of 81
Garrison Financial
PURCHASE AND SALE
City of Fayetteville Police Pension and Relief Fund
Charles Schwab #2448-5630
From 01-01-15 To 09-30-15
Trade Settle Unit
Date Date Quantity Security Price Amount
03-19-15 03-24-15 1,775 Sector SPDR Fncl Select Shs 24.41 43,324.52
03-19-15 03-24-15 1,700 Sector SPDR Utility Select Shs 44.91 76,343.50
03-19-15 03-24-15 2,300 Sector SPDR Utility Select Shs 44.91 103,288.25
03-19-15 03-24-15 3,000 iShares DJ Select Div 78.45 235,336.72
03-24-15 03-27-15 800 iShares IBOXX Inv Grade Corp Bond 121.86 97,490.72
03-24-15 03-27-15 46 iShares IBOXX Inv Grade Corp Bond 121.86 5,605.72
03-24-15 03-27-15 1,204 iShares IBOXX Inv Grade Corp Bond 121.86 146,723.52
05-08-15 05-13-15 1,250 iShares IBOXX Inv Grade Corp Bond 119.06 148,825.94
1,589,350.28
3
Firemen's Pension and Relief Fund
October 29,2015
Page 15 of 81
Garrison Financial
REALIZED GAINS AND LOSSES
City of Fayetteville Police Pension and Relief Fund
Charles Schwab #2448-5630
From 01-01-15 Through 09-30-15
Gain Or Loss
Open Close Cost Amort.or
Date Date Quantity Security Basis Accretion Proceeds Short Term Long Term
04-16-14 03-19-15 100 Ensco Plc. 5,034.33 2,061.55 -2,972.78
04-16-14 03-19-15 250 Ensco Plc. 12,585.82 5,153.88 -7,431.94
04-16-14 03-19-15 300 Ensco Plc. 15,102.98 6,184.66 -8,918.32
04-16-14 03-19-15 300 Ensco Plc. 15,102.98 6,184.66 -8,918.32
04-16-14 03-19-15 800 Ensco Plc. 40,274.61 16,491.60 -23,783.01
06-10-14 03-19-15 1,750 Noble Corp. 48,930.13 23,685.79 -25,244.34
06-26-14 03-19-15 2,000 Alerian MLP 36,190.60 32,676.02 -3,514.58
01-16-13 03-19-15 3,000 Alerian MLP 51,451.61 49,014.03 -2,437.58
12-20-10 03-19-15 1,700 Sector SPDR Utility Select 58,043.02 76,343.50 18,300.48
Shs
12-20-10 03-19-15 2,300 Sector SPDR Utility Select 78,528.80 103,288.25 24,759.45
Shs
05-19-14 03-19-15 5,650 Keycorp 75,839.95 81,406.62 5,566.67
02-10-14 03-19-15 2,000 Sector SPDR Fncl Select Shs 43,639.23 48,818.36 5,179.13
02-10-14 03-19-15 1,775 Sector SPDR Friel Select Shs 38,729.82 43,324.52 4,594.70
05-12-14 03-19-15 100 Freeport-McMoRan Copper 3,487.70 1,720.02 -1,767.68
&Gold,Inc.
05-12-14 03-19-15 200 Freeport-McMoRan Copper 6,975.40 3,440.04 -3,535.36
&Gold,Inc.
05-12-14 03-19-15 100 Freeport-McMoRan Copper 3,487.70 1,720.02 -1,767.68
&Gold,Inc.
05-12-14 03-19-15 100 Freeport-McMoRan Copper 3,487.70 1,720.02 -1,767.68
&Gold,Inc.
05-12-14 03-19-15 100 Freeport-McMoRan Copper 3,487.70 1,720.02 -1,767.68
&Gold,Inc.
05-12-14 03-19-15 100 Freeport-McMoRan Copper 3,487.70 1,720.02 -1,767.68
&Gold,Inc.
05-12-14 03-19-15 100 Freeport-McMoRan Copper 3,487.70 1,720.02 -1,767.68
&Gold,Inc.
05-12-14 03-19-15 100 Freeport-McMoRan Copper 3,487.70 1,720.02 -1,767.68
&Gold,Inc.
05-12-14 03-19-15 1,100 Freeport-McMoRan Copper 38,364.70 18,915.85 -19,448.85
&Gold,Inc.
08-08-11 03-19-15 3,000 ishares DJ Select Div 156,695.97 235,336.72 78,640.74
10-06-09 03-24-15 800 ishares IBOXX Inv Grade 87,773.42 97,490.72 9,717.30
Corp Bond
10-06-09 03-24-15 46 iSharesIBOXX Inv Grade 5,046.97 5,605.72 558.75
Corp Bond
10-06-09 03-24-15 1,204 ishares IBOXX Inv Grade 132,099.00 146,723.52 14,624.52
Corp Bond
06-26-14 04-08-15 150 Microsoft Corp. 6,271.50 6,201.93 -69.57
11-05-13 04-08-15 2,675 Microsoft Corp. 100,543.80 110,601.00 10,057.20
06-26-14 04-08-15 50 Pfizer,Inc. 10,088.00 1,732.85 -8,355.15
05-07-10 04-08-15 3,600 Pfizer,Inc. 72,441.75 124,765.24 52,323.49
06-26-14 05-07-15 250 Intel Corp. 7,037.50 8,080.37 1,042.87
06-22-06 05-07-15 750 Intel Corp. 15,400.90 24,241.09 8,840.18
06-26-14 05-07-15 200 Cisco Systems,Inc. 4,642.00 5,762.90 1,120.90
03-29-11 05-07-15 1,300 Cisco Systems,Inc. 25,614.04 37,458.85 11,844.81
04-15-11 05-07-15 450 Johnson&Johnson 29,113.09 44,938.97 15,825.88
10-06-09 05-08-15 1,250 iShares IBOXX Inv Grade 137,145.97 148,825.94 11,679.97
Corp Bond
1
Firemen's Pension and Relief Fund
October 29,2015
Page 16 of 81
Garrison Financial
REALIZED GAINS AND LOSSES
City of Fayetteville Police Pension and Relief Fund
Charles Schwab #2448-5630
From 01-01-15 Through 09-30-15
Gain Or Loss
Open Close Cost Amort.or
Date Date Quantity Security Basis Accretion Proceeds Short Term Long Term
12-31-14 05-08-15 635 McDonald's Corp. 60,065.98 62,554.99 2,489.01
TOTAL GAINS 10,219.45 266,946.61
TOTAL LOSSES -124,565.97 -2,437.58
1,439,187.77 0.00 1,589,350.28 -114,346.52 264,509.03
TOTAL REALIZED GAIN/LOSS 150,162.51
NO CAPITAL GAINS DISTRIBUTIONS
2
Garrison Financial Firemen's Pension and Relief Fund
29,PERFORMANCE SUMMARY OctoberPage17 of 81
GROSS OF FEES
City of Fayetteville Police Pension and Relief Fund
Charles Schwab #2448-5630
September 30, 2015
PORTFOLIO COMPOSITION CHANGE IN PORTFOLIO
Market Pct.
Value Assets Yield
Cash&Equivalents 298,453.13 4.9 0.0 Portfolio Value on 12-31-14 7,023,870.27
Account Fixed 2,279,635.06 37.4 1.8 Accrued Interest 16,134.03
Income
Account Equities 3,524,576.12 57.8 2.8 Net Additions/Withdrawals -577,065.04
Account 0.00 0.0 - Realized Gains -48,890.72
Commodities
Unrealized Gains -442,049.03
Income Received 133,630.77
Change in Accrued Interest -2,965.97
Portfolio Value on 09-30-15 6,089,496.25
Accrued Interest 13,168.06
Total 6,102,664.30 100.0 2.3 6,102,664.30
TIME WEIGHTED RETURN
Annualized
Quarter Year Last 12 Inception
To Date To Date Months To Date
Account -4.98 -5.56 -4.11 -3.97
40%Fixed Income/60% -3.49 -2.38 0.85 1.22
Equity Blended Index
Account Fixed Income 0.69 1.84 2.88 2.34
Barclays Capital Intermed 0.95 1.77 2.68 2.11
Govt/Credit
Account Equities -8.68 -10.20 -8.45 -7.93
S&P 500 -6.44 -5.29 -0.61 0.40
All "Account" returns refer to your portfolio. Benchmark indexes are also listed for reference. All returns are reported as
percentages.
This report is calculated using industry-standard accounting and performance calculation methodologies and is generated by our Axys
portfolio accounting software. Calculations are a time-weighted total return series based on monthly valuations, including all cash
and equivalents. All calculations are done based on trade date, employing the accrual method of accounting and include cash,
interest, dividends and realized and unrealized gains and losses. Performance is adjusted to accurately reflect portfolio deposits and
withdrawals. Results are presented after transaction costs but before management fees. Inception-to-date returns are annualized
numbers, except for accounts under management less than one year. Unsupervised assets are excluded in performance calculation.
At any given point in time an investment may be worth more or less than the original purchase price.
Firemen's Pension and Relief Fund
0001, October 29,2015
Page 18 of 81
GARRISON
F I N A N C I A L
October 7,2015
City of Fayetteville Police Pension and Relief Fund
Charles Schwab #2448-5630
113 West Mountain
Fayetteville,AR 72701
STATEMENT OF MANAGEMENT FEES
For The Period July 1 through September 30,2015
Portfolio Value as of 06-30-15 6,519,258
Portfolio Value as of 07-31-15 6,462,506
Portfolio Value as of 08-31-15 6,203,646
Portfolio Value as of 09-30-15 6,102,664
Average of 4 Months 6,322,018
6,322,018 @ 0.5000%per annum 7,903
Quarterly Management Fee 7,903
TOTAL DUE AND PAYABLE 7,903
This statement is for informational purposes only. As you requested, the fee will be automatically
deducted from your account. Please be advised that it is the responsibility of the client to verify the
accuracy of each fee calculation. The custodian will not determine whether the fee is properly calculated.
001�i, GAkRISON RECEIVED
FINANCIAL OCT 132015
October 6, 2015
CIINfY CLERK'S OFFS EE
Ms. Sondra Smith
City of Fayetteville
113 West Mountain Street
Fayetteville, Arkansas 72701
Dear Ms. Smith,
Enclosed are the quarterly reports for both Firemen's Pension & Relief Fund and Police Pension and Relief
Fund for the quarter ended September 30, 2015.
Uncertainty about Fed policy, woes in China, and sliding commodity prices weighed heavily on the equity
markets in the third quarter, bringing about the long awaited correction that had eluded stocks for almost 4
years.
Global growth concerns took center stage as China's economy continues to slow. The Chinese government
took the markets by surprise in August devaluing the yuan in an effort to prop up the sliding stock market
and aid the slumping manufacturing sector. In spite of the currency move, in addition to other measures
like outright purchases of securities and halting trading, the Shanghai Composite still lost more than 25%
during the quarter.
The Fed also added to the uncertainty in the quarter, as the prospect of rising rates weighed on investors'
minds. The U.S. economy remains steady, with good data one week and bad the next, but the Fed decided
to keep rates unchanged in September. Rather than the equity markets cheering low rates, they sold off
sharply after the Fed's decision, shining an even bigger spotlight on China and global growth concerns.
Commodities took the worst hit as China has accounted for the much of the demand now for several years.
Unsurprisingly, energy and the materials sector were yet again the worst performers in the quarter with
energy down -18%and materials off-17%. Healthcare, which has been one of the bright spots in the
market the past few years, was also down-11% during the quarter. The only positive sector in the quarter
was the interest rate sensitive Utilities which gained+4.4% after retreating earlier in the year.
The fixed income market for the quarter(as measured by the Barclays Intermediate Government/Credit
Index)was up+.95%, bringing year-to-date performance to +1.77%and trailing twelve month performance
to+2.68%. Yields (as measured by the market proxy of the 10 year Treasury Bond)for the quarter were
down (prices up) from around 2.35%to 2.04%, having peaked in early July at 2.46% and troughed at an
even 2.00% in mid-August. Year-to-date rates are down about .15%. For the year ended September, rates
are down .45%.
Garrison Financial
605 W. Dickson Street, Suite 201 *Fayetteville,Arkansas 72701
479-587-1045 • 888-442-7637. 479-587-1257 Facsimile 9 www.GarrisonFinancial.com
Volatility spiked in the quarter as the markets grappled with global slowing. The equity markets finally
registered a 10% correction and earnings are expected to head south due in large part to the turmoil in
the commodities complex and the strong dollar. Although we do not believe a global recession is in the
offing at this juncture, we do believe those headwinds, in addition to other economic concerns around
the globe, will keep economic growth muted and interest rates low for the near term. We continue to
focus our investments in strong companies we believe will deliver over the long-term and can withstand
the ebbs and flows of the economic backdrop around the world.
We've included a recent article written by James Bell for the Arkansas Business Journal regarding stock
market corrections. We thought it might be of interest given the recent movements in the market.
Please call the office if you should have any questions.
Cordially,
Kerry Bradley, CFA, MBA
Equity Portfolio Manager
Garrison Financial
605 W. Dickson Street, Suite 201 .Fayetteville, Arkansas 72701
479-587-1045 9 888-442-7637. 479-587-1257 Facsimile+ www.GarrisonFinancial.com
Are Investors Haunted by Corrections Past?
It finally happened. After nearly four years, stocks suffered a correction in late August. Sure, it hurts to
lose money,just like it always does. But I'm a numbers guy, so I find it helpful to review the historical
record for the frequency and severity of such events, and more importantly, what to expect on the other
side.
From its all-time high on May 21 to its recent low on August 25,the S&P 500 declined 12.35% against a
backdrop of China's currency devaluation, emerging markets weakness, and the potential for the
Federal Reserve to finally raise short term rates from essentially zero. A lot of headlines were written
about stocks officially entering correction territory. A correction is generally defined as a selloff of 10%
or more, while declines of 20% or greater are termed bear markets. For simplicity, I will refer to any
decline of 10%or greater as a correction.
A review of market history from Yardeni Research shows 32 prior declines of 10%or more since 1945,
ranging from those that barely qualify to the oil shock of the early 1970s (-48%), the tech bubble
bursting in 2000 (-49%), and we all remember the financial crisis around 2008 (-56%). Obviously not
every correction leads to such ominous outcomes. On average, in the postwar period we have seen a
correction just over every two years. There is no discernible pattern to timing or frequency, with eight
corrections in the 1970s versus just two in the 1990s. The average percentage decline is-21%, though
individual instances are highly variable. From peak to trough, the duration of corrections is also highly
variable. Average duration is 231 days,with some instances as quick as a few weeks and others longer
than a year including the two-and-a-half year tech correction that ended in October 2002.
So given that corrections happen fairly regularly, and are by definition severe, why does the recent
selloff feel so jarring? In part, I think investors may have been spoiled by the recent market. As noted, it
has been nearly four years since the previous correction, longer than the two year average. Even that
correction, beginning around August 2011 with the backdrop of S&P downgrading US Treasury debt
from AAA, was mainly contained to a brief two months and quickly put in the rear view mirror. 2014
concluded as the sixth consecutive calendar year of positive returns (including dividends). It's easy to
see how the potential for a correction may have been shuttled to the back of the mind. Other investors,
with the memories of the severe bear markets of 2000 and 2008 still fresh, are quick to conclude that
any selloff may be the harbinger of something far worse. Having invested through those years myself,
that concern is understandable.
Part of a financial advisor's job is education. Any discussion about the long-term positive average
returns of stocks, bonds, real estate, or any asset class, should include the fact that those returns don't
arrive smoothly,year in and year out. History demonstrates the certainty of unpredictable periods of
decline with indeterminate length and severity. Academic research, and our own experience, have
convinced me that there is no reliable way of predicting and avoiding these corrections, at least without
substantially altering your risk profile. Note that avoiding corrections requires two accurate calls:
identifying the peak to sell,then the bottom to reinvest, plus the drag of friction,transaction costs, and
taxes. I know there are dozens of ways to make money in the markets, but I would be skeptical of
anyone who claims to reliably avoid corrections.
What does a stock market correction mean for the broader economy? Since stock prices reflect
investors' opinions about earnings and growth,the economy, interest rates, and enthusiasm, declining
prices necessarily signal a net decline in at least some of those factors, although it is very difficult to
attribute which ones. S&P points out that all 11 postwar recessions were preceded by a correction,
anticipated by an average of seven months. Unfortunately, corrections also produced a lot of false
positives for recessions, providing an accurate forecast only 35%of the time. A correction is more of a
yellow light, encouraging us to pay closer attention to our economic assumptions. Most corrections
pass without a sustained contraction in economic growth. Bear markets have been more reliable
recession predictors (67%).
For an investor,the key is to acknowledge the likelihood of correction periods, then focus on the long
term. Corrections come with the territory of equity investments, and the volatility they represent are
part of the price of the higher long-term returns that stocks have historically provided. The discipline to
stay invested through the downturns is often the sign of a successful investor. Keep in mind, stocks
have recovered and then exceeded every prior correction, and I would not expect the current situation
to end any differently.
James Bell is a VP and financial advisor at Garrison Financial, a locally owned independent investment
advisory firm. He can be reached at ibell@garrisonfiiianciahcQrn.
GARRiSON
F I N A N C I A L
City of Fayetteville Firemen 's Pension & belief Fund
Charles Schwab #7851-1206
Quarter Ending September 30, 2015
PORTFOLIO SUMMARY
City of Fayetteville Firemen's Pension & Relief Fund
Charles Schwab #7851.-1206
September 30, 2015
57.0 a Cash & Equivalents 796,511.32
■ Account Fixed Income 710,163.28
Account Equities 1,997,658.84
Garrison Financial
PORTFOLIO APPRAISAL
City of Fayetteville Firemen's Pension & Relief Fund
Charles Schwab #7851-1206
September 30, 2015
Adj Unit Total Adjusted Market Pet. Unit Annual
Quantity Security Cost Cost Price Value Assets Income Income Yield
CASH AND EQUIVALENTS
Schwab Advisor Cash Res- 796,511.32 796,511.32 22.7 0.010 79.65 0.0
Premier
796,511.32 796,511.32 22.7 79.65 0.0
TREASURY NOTE
200,000 US Treasury Note 100.60 201,201.34 108.89 217,776.00 6.2 4.000 8,000.00 0.9
4.000%Due 08-15-18
Accrued Interest 1,000.00 0.0
201,201,34 218,776.00 6.2 8,000.00 0.9
CORPORATE BONDS
50,000 IBM Corp. 100.01 50,002.69 128.29 64,146.50 1.8 7.000 3,500.00 3.7
7.000%Due 10-30-25
Accrued Interest 1,458.33 0.0
50,002.69 65,604,83 1.9 3,500.00 3.7
COMMON STOCK
1,710 AT&T,Inc. 24.39 41,702.95 32.58 55,711.80 1.6 1.880 3,214.80 5.8
1,575 AbbVie,Inc. 24.35 38,357,14 54.41 85,695.75 2.4 2.040 3,213.00 3.7
1,575 Abbott Laboratories 22.46 35,371.29 40.22 63,346.50 1.8 0.960 1,512.00 2.4
1,250 BCE,Inc.CI F 24.40 30,494.62 40.96 51,200.00 1.5 2.630 3,287.50 6.4
350 Chevron Corporation 73.07 25,575.42 78.88 27,608.00 0.8 4.280 1,498.00 5.4
3,000 Cisco Systems,Inc. 17.43 52,302.90 26.25 78,750.00 2.2 0.840 2,520.00 3.2
2,200 Coca-Cola Company 26.40 58,074,28 40.12 88,264.00 2.5 1.320 2,904.00 3.3
1,200 ConocoPhillips 44.94 53,930.85 47.96 57,552.00 1.6 2.960 3,552.00 6.2
3,000 General Electric Co. 15.96 47,883.00 25.22 75,660.00 2.2 0.920 2,760.00 3.6
900 Genuine Parts Co. 36.65 32,986.53 82.89 74,601.00 2.1 2.460 2,214.00 3.0
1,500 G1axoSmithKhne Plc. 38.47 57,702.15 38.45 57,675.00 1.6 2.290 3,435.00 6.0
2,250 Intel Corp. 17.61 39,612.97 30.14 67,815.00 1.9 0.960 2,160.00 3.2
815 Johnson&Johnson 60.77 49,527.39 93.35 76,080.25 2.2 3.000 2,445.00 3.2
850 Kimberly Clark Corp. 58.18 49,454.69 109.04 92,684.00 2.6 3.520 2,992.00 3.2
1,300 Microsoft Corp. 26.30 34,185.86 44.26 57,538.00 1.6 1.440 1,872.00 3.3
1,000 Procter&Gamble Co. 50.46 50,458.56 71.94 71,940.00 2.1 2.650 2,650.00 3.7
700 Wal-Mart Stores,Inc. 50.36 35,248.98 64.84 45,388.00 1.3 1.960 1,372.00 3.0
732,869.59 1,127,509.30 32.2 43,601.30 3.9
MUTUAL FUNDS
1,296.008 Columbia Acorn Intl Z 38.58 50,000.00 39.15 50,738.71 1.4 0.670 868.33 1.7
14,455.268 Fed Interm Corp Bond 9.69 140,000.00 9.30 134,433.99 3.8 0.340 4,914.79 3.7
7,651.109 Natixis Loomis Sayles 13.07 100,000.00 12.34 94,414.69 2.7 0.400 3,060.44 3.2
Bond Fund
3,600.360 PIMCO Total Return Cl 11.11 40,000.00 10.47 37,695.77 1.1 0.240 864.09 2.3
D
4,683.407 SteelPath MLP Income 10.68 50,000.00 8.02 37,560.92 1.1 0.780 3,653.06 9.7
4,558.369 Vanguard Developed 10.97 50,000.00 11.44 52,147.74 1.5 0.350 1,595.43 3.1
Markets
1,387.374 Vanguard Emerging 3604 50,000.00 27.55 38,222.15 1.1 0.900 1,248.64 3.3
Mkts Stk Index
2,615.123 Vanguard Hi-Div Yid 19.12 50,000.00 24.81 64,881.20 1.9 0.820 2,144.40 3.3
3,412.116 Vanguard Mid-Cap 29.31 100,000.00 41.89 142,933.54 4.1 0.540 1,842.54 1.3
Growth
3,410.952 Vanguard Mid-Cap 29.32 100,000.00 43.12 147,080.25 4.2 1.390 4,741.22 3.2
Value
3,290.816 Vanguard Small-Cap 30.39 100,000.00 41.43 136,338.51 3.9 0.700 2,303.57 1.7
Growth
I
Garrison Financial
PORTFOLIO APPRAISAL
City of Fayetteville Firemen's Pension & Relief Fund
Charles Schwab #7851-1206
September 30, 2015
Adj Unit Total Adjusted Market Pct. Unit Annual
Quantity Security Cost Cost Price Value Assets Income Income Yield
3,324.742 Vanguard Small-Cap 30.08 100,000.00 41.63 138,409.01 3.9 0.800 2,659.79 1.9
Value
930,000.00 1,074,856.49 30.7 29,896.30 2.8
UNIT TRUSTS
400 iShares Barclays 7-10 104.43 41,771.06 107.87 43,148.00 1.2 2.060 824.00 1.9
yr Treasury
850 iShares DJ Select Div 4739 40,285.75 72,75 61,837.50 1.8 2.520 2,142.00 3.5
1,000 iShares IBOXX Inv 106.90 106,901.39 116.09 116,090.00 3.3 3.970 3,970.00 3.4
Grade Corp Bond _
188,958.19 221,075.50 6.3 6,936.00 3.1
TOTAL PORTFOLIO 2,899,543.14 3,504,333.44 100.0 92,013.25 2.4
,'ou should carefully compare this statement to the statement you receive from your custodian and notify us immediately of any discrepancies.
2
Garrison Financial
PURCHASE AND SALE
City of Fayetteville Firemen's Pension & Relief Fund
Charles Schwab #7851-1206
From 01-01-15 To 09-30-15
Trade Settle Unit
Date Date Quantity Security Price Amount
SALES
05-07-15 05-12-15 1,000 American Electric Power 55.46 55,461.03
02-05-15 02-10-15 200 BCE,Inc. Cl F 47.41 9,482.29
02-05-15 02-10-15 100 BCE,Inc. Cl F 47.42 4,741.65
02-05-15 02-10-15 100 BCE, Inc. Cl F 47.42 4,741.65
02-05-15 02-10-15 100 BCE,Inc. Cl F 47.42 4,741.65
02-05-15 02-10-15 100 BCE,Inc. CI F 47.41 4,741.15
02-05-15 02-10-15 50 BCE, Inc. Cl F 47.41 2,370.57
02-05-15 02-10-15 400 BCE, Inc. Cl F 47.41 18,964.56
05-07-15 05-12-15 294 Chevron Corporation 107.69 31,659.67
05-07-15 05-12-15 56 Chevron Corporation 107.69 6,030.42
03-10-15 03-13-15 833 Duke Energy Corp. 74.79 62,298.30
03-10-15 03-13-15 750 Emerson Electric 56.15 42,114.77
04-08-15 04-13-15 106 Halyard Health,Inc. 48.95 5,189.20
02-05-15 02-10-15 100 Intel Corp. 33.94 3,393.81
02-05-15 02-10-15 200 Intel Corp. 33.94 6,787.64
02-05-15 02-10-15 200 Intel Corp. 33.94 6,787.64
02-05-15 02-10-15 100 Intel Corp. 33.94 3,393.81
02-05-15 02-10-15 100 Intel Corp. 33.94 3,393.81
02-05-15 02-10-15 200 Intel Corp. 33.94 6,787.64
02-05-15 02-10-15 67 Intel Corp. 33.94 2,273.86
02-05-15 02-10-15 233 Intel Corp. 33.94 7,907.61
02-05-15 02-10-15 275 Intel Corp. 33.94 9,332.45
04-08-15 04-13-15 1,520 Pfizer,Inc. 34.65 52,673.43
04-08-15 04-13-15 675 Sector SPDR Utility Select Shs 44.43 29,987.57
07-10-15 07-15-15 100 Sector SPDR Utility Select Shs 43.17 4,317.43
07-10-15 07-15-15 100 Sector SPDR Utility Select Shs 43.16 4,316.43
07-10-15 07-15-15 100 Sector SPDR Utility Select Shs 43.16 4,316.43
07-10-15 07-15-15 103 Sector SPDR Utility Select Shs 43.16 4,445.92
07-10-15 07-15-15 100 Sector SPDR Utility Select Shs 43.16 4,316.43
07-10-15 07-15-15 100 Sector SPDR Utility Select Shs 43.16 4,316.43
07-10-15 07-15-15 109 Sector SPDR Utility Select Shs 43.16 4,704.91
07-10-15 07-15-15 100 Sector SPDR Utility Select Shs 43.16 4,316.43
07-10-15 07-15-15 13 Sector SPDR Utility Select Shs 43.17 561.21
07-10-15 07-15-15 1,000 Sector SPDR Utility Select Shs 43.16 43,164.30
08-07-15 08-12-15 400 iShares Barclays 7-10 yr Treasury 106.27 42,508.04
08-07-15 08-12-15 600 iShares Barclays 7-10 yr Treasury 106.27 63,762.06
08-07-15 08-12-15 400 iShares IBOXX Inv Grade Corp Bond 115.71 46,282.65
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,570.77
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,571.07
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,571.07
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,570.77
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,570.57
1
Garrison Financial
PURCHASE AND SALE
City of Fayetteville Firemen's Pension & Relief Fund
Charles Schwab #7851-1206
From 01-01-15 To 09-30-15
Trade Settle Unit
Date Date Quantity Security Price Amount
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,571.07
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,570.67
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,571.07
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,570.77
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,571.07
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,570.77
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,570.77
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,570.77
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,570.77
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,571.07
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,570.77
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,571.07
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,571.07
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,571.07
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,571.07
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,571.07
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,571.07
08-07-15 08-12-15 100 iShares IBOXX Inv Grade Corp Bond 115.71 11,570.77
08-07-15 08-12-15 1,300 iShares IBOXX Inv Grade Corp Bond 115.71 150,417.24
1,033,133.10
2
Garrison Financial
REALIZED GAINS AND LOSSES
City of Fayetteville Firemen's Pension & Relief Fund
Charles Schwab #7851-1206
From 01-01-15 Through 09-30-15
Gain Or Loss
Open Close Cost Amort.or
Date Date Quantity Security Basis Accretion Proceeds Short Term Long Term
12-31-05 02-05-15 200 BCE,Inc.Cl F 4,879.14 9,482.29 4,603.15
12-31-05 02-05-15 100 BCE,Inc.Cl F 2,439.57 4,741.65 2,302.08
12-31-05 02-05-15 100 BCE,Inc.Cl F 2,439.57 4,741.65 2,302.08
12-31-05 02-05-15 100 BCE,Inc.Cl F 2,439.57 4,741.65 2,302.08
12-31-05 02-05-15 100 BCE,Inc.Cl F 2,439.57 4,741.15 2,301.58
12-31-05 02-05-15 50 BCE,Inc.Cl F 1,219.78 2,370.57 1,150.78
12-31-05 02-05-15 400 BCE,Inc.Cl F 9,758.28 18,964.56 9,206.28
12-31-05 02-05-15 100 Intel Corp. 1,760.58 3,393.81 1,633.23
12-31-05 02-05-15 200 Intel Corp. 3,521.15 6,787.64 3,266.49
12-31-05 02-05-15 200 Intel Corp. 3,521.15 6,787.64 3,266.49
12-31-05 02-05-15 100 Intel Corp. 1,760.58 3,393.81 1,633.23
12-31-05 02-05-15 100 Intel Corp. 1,760.58 3,393.81 1,633.23
12-31-05 02-05-15 200 Intel Corp. 3,521.15 6,787.64 3,266,49
12-31-05 02-05-15 67 Intel Corp. 1,179.59 2,273.86 1,094.27
12-31-05 02-05-15 233 Intel Corp. 4,102.14 7,907.61 3,805.47
12-31-05 02-05-15 275 Intel Corp. 4,841.59 9,332.45 4,490.86
12-31-05 03-10-15 750 Emerson Electric 28,509.22 42,114.77 13,605.54
12-31-05 03-10-15 833 Duke Energy Corp. 47,880.89 62,298.30 14,417.41
12-31-05 04-08-15 106 Halyard Health,Inc. 2,139.84 5,189.20 3,049.36
12-31-05 04-08-15 675 Sector SPDR Utility Select 21,572.80 29,987.57 8,414.77
Shs
12-31-05 04-08-15 1,520 Pfizer,Inc. 25,116.11 52,673.43 27,557.32
12-31-05 05-07-15 1,000 American Electric Power 33,687.39 55,461.03 21,773.63
12-31-05 05-07-15 294 Chevron Corporation 21,483.35 31,659.67 10,176.32
12-31-05 05-07-15 56 Chevron Corporation 4,092.07 6,030.42 1,938.35
12-31-05 07-10-15 100 Sector SPDR Utility Select 3,195.97 4,317.43 1,121.46
Shs
12-31-05 07-10-15 100 Sector SPDR Utility Select 3,195 97 4,316.43 1,120.46
Shs
12-31-05 07-10-15 100 Sector SPDR Utility Select 3,195.97 4,316.43 1,120.46
Shs
12-31-05 07-10-15 103 Sector SPDR Utility Select 3,291.85 4,445.92 1,154.07
Shs
12-31-05 07-10-15 100 Sector SPDR Utility Select 3,195.97 4,316.43 1,12046
Shs
12-31-05 07-10-15 100 Sector SPDR Utility Select 3,195.97 4,316.43 1,120.46
Shs
12-31-05 07-10-15 109 Sector SPDR Utility Select 3,483.61 4,704.91 1,221.30
Shs
12-31-05 07-10-15 100 Sector SPDR Utility Select 3,195.97 4,316.43 1,12046
Shs
12-31-05 07-10-15 13 Sector SPDR Utility Select 415.48 561.21 145.73
Shs
12-31-05 07-10-15 1,000 Sector SPDR Utility Select 31,959.70 43,164.30 11,204.60
Shs
12-31-05 08-07-15 400 iShares Barclays 7-10 yr 41,771.06 42,508.04 736.98
Treasury
12-31-05 08-07-15 600 iShares Barclays 7-10 yr 62,656.59 63,762.06 1,105.47
Treasury
12-31-05 08-07-15 400 iShares IBOXX Inv Grade 42,760.55 46,282.65 3,522.10
Corp Bond
12-31-05 08-07-15 100 iShares IBOXX Inv Grade 10,690.14 11,570.77 880.63
Corp Bond
1