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HomeMy WebLinkAbout2012-01-05 - Agendas - Final Uoneld 3ordan Chairman Sondra E.Smith Secretary Pete Reagan position 2 Retired Marion Doss Position I Retired Dennis Mullens Position 3 Retired aayel O'CV11 le Ron Wood Position 4 Retired ARKANSAS Special Firemen's Pension and Relief Fund Board of Trustees Meeting Agenda January 5, 2012 A special meeting of the Fayetteville Firemen's Pension and Relief Fund Board of Trustees will be held at 3:00 PM on January 5, 2012 in Room 326 of the City Administration Building. New Business: Longer Investments & Northern Trust Longer Investments letter dated December 29, 2011 Resolution 01-2012 authorized signors for Northern Trust Company Longer investment authorized signors form Longer Investments letter of authorization to terminate investment advisor agreement Longer investment portfolio appraisal dated December 29, 2011 Garrison Financial & Charles Schwab & Company. Inc. 0 Garrison Financial Corporation Firm Brochure Investment Management Agreement- Garrison Financial Corporation Investment Policy Statement- Garrison Financial Corporation Resolution 02-2012 authorized signors for Charles Schwab& Company, Inc Company Retirement Account Application - Charles Schwab & Company, Inc Certification of Trustee - Charles Schwab & Company, Inc Prime Brokerage Amendment (Account Holder) - Charles Schwab& Company, Inc Transfer of Account Form - Charles Schwab & Company, Inc Schwab Moneyl-ink Electronic Funds Transfer Form - Charles Schwab & Company, Inc LONGER INVESTMENTS INCORPORATED RECEIVED A Regisfered hmshnoitAdvisol, DEC 8 0 2011 CITY OF FAYETTEVILLE December 29, 2011 CITY CLERKS OFFICE Ms. Sondra Smith, City Clerk City of Fayetteville 113 W. Mountain Street Fayetteville, Arkansas 72701 Dear Sondra: We received notification of the City's selection of Garrison Financial as the new investment advisor for the Fayetteville Fire Pension and Relief Fund account. All of us at Longer Investments have enjoyed working with you and the Fire Pension Board for the past nine years. In order to properly document the termination of the account relationship with Longer Investments Inc., your signature, or the signature of the mayor, is required on the enclosed letter. Please sign it and return it to our office in the envelope provided. We have also enclosed final portfolio reports, including an appraisal as of yesterday's close, year-to-date income and realized gain/loss reports, a performance report, and a statement of management fees. As instructed, the fees will be billed to the account at Northern Trust. Annualized equity performance since account inception on August 15, 2002, has been 4.8%. This compares to the annualized performance of the S&P 500 of 3.3% on a cash basis and 5.4%including the reinvestment of dividends. The annualized return in bonds has been 4.9%, compared to the Lehman bond index of 4.1%. The annualized total account return has been 5.0%, which meets the current actuarial return assumption. This compares to an index return of 4.0%for a 50% stock/50%bond portfolio during this time. Also enclosed is a form authorizing a change in the authorized signors for the account at Northern Trust. According to KerTy Watkins with Garrison Financial, the account signors from Northern Trust must match the signors on the new account that their firm is establishing with you,Mayor Jordan, and ARa�IIFasaut 5�nzed siguorsPleise ,9,9,4r,�-�, complete this form and return it to our office as soon as possible to expedite the process. Effective immediately, we will discontinue transactions in the portfolio. Please be assured that we will work with Garrison Financial to ensure a smooth transition for the City of Fayetteville Fire Pension and Relief Fund. RO,Ba 1269 Fareflmlle,Aikansz 72702 Teiephonc:479-443-5851 Tollfice:800-827-7710 &Y 479-443-7129 Websile:�.Iongamvxoni Ms. Sondra Smith December 30, 2011 Page Two We appreciate the opportunity to participate in the management of the City of Fayetteville Fire Pension and Relief Fund assets, and we wish the board the best with the new arrangement. Sincerely, 'r, Elaine M. Longer, President EML/kmc Enclosure Fayetteville Firemen's Pension and Relief Fund Board of Trustees City of Fayetteville Arkansas Resolution Number 01-2012 A RESOLUTION TO APPROVE AUTHORIZED SIGNORS TO ACT ON BEHALF OF THE FIREMEN'S PENSION AND RELIEF FUND BOARD OF TRUSTEES WITH RESPECT TO ALL MATTERS PERTAINING TO THE CUSTODY AGREEMENT BETWEEN THE FIREMEN'S PENSION AND RELIEF FUND BOARD OF TRUSTEES AND NORTHERN TRUST COMPANY AND TO REPEAL ALL PREVIOUS MOTIONS AND RESOLUTIONS REGARDING AUTHORIZED SIGNORS FOR NORTHERN TRUST COMPANY. NOW,BE IT RESOLVED BY THE FIREMEN'S PENSION AND RELIEF FUND BOARD OF TRUSTEES: Section 1: That the Firemen's Pension and Relief Fund Board of Trustees hereby repeals any and all previous motions and resolutions regarding authorized signors for Northern Trust Company. Section 2: That the Firemen's Pension and Relief Fund Board of Trustees hereby approves the follwAring as authorized signors for the Northern Trust Company. Lioneld Jordan,Mayor Sondra E. Smith, City Clerk Treasurer PASSED and APPROVED this 5fl'day of January, 2012. Approved by: 1. 4. Marion Doss, Board of Trustees Ron Wood, Board of Trustees 2. 5. Dennis Mullens, Board of Trustees Mayor Jordan, Chairman Board of Trustees 3. 6. Pete Reagan, Board of Trustees Sondra E. Smith, Secretary Board of Trustees AUTHORIZED SIGNORS 1, , member of the City of Fayetteville Firemen's Pension and Relief Board, which has established a Firemen's Pension and Relief Fund, duly organized and existing under and by virtue of the laws of the State of Arkansas hereby certify that pursuant to a resolution of the Board of Trustees of the City of Fayetteville Firemen's Pension and Relief Fund dated 20 the individuals whose names appear were duly authorized to act on behalf of the Boa—rdw'ith respect to all matters pertaining to the custody Agreement between the Board and Northern Trust Company. NAME TITLEISIGNATURE Lioneld Jordan, Mayor Signature Social Security Number Title Date of Birth Sondra Smith, City Clerk Signature Social Security Number Title Date of Birth Dated this day of 20_. Member, City of Fayetteville Firemen's Pension & Relief Fund Board Oty of Fayetteville Fire Pension & Relief Fund 113 W. Mountain Street Fayetteville,Arkansas 72701 December 30, 2011 Ms. Elaine M. Longer, CFA Longer Investments Inc. P.O. Box 1269 Fayetteville, Arkansas 72702 RE: Account name— City of Fayetteville Firemen's Pension and Relief Fund Account number— 03-03353 Dear Ms. Longer: Please accept this letter as authorization to terminate the investment advisor agreement between Longer Investments Inc. and the above referenced account. The City of Fayetteville Fire Pension& Relief Fund Board of Trustees acknowledges that upon termination, we are responsible for monitoring the securities in the account. Longer Investments will have no further obligation to act or advise with respect to the assets and no continuing responsibility for performance of the assets. Upon receipt of this letter, Longer Investments will notify the custodian of the account that the relationship has been terminated. We understand that Longer Investments will no longer be authorized to conduct transactions in the account. Thank you for your prompt attention to this matter. Sincerely, LONGER I NVESTM ENTS INCORPORATED City of Fayetteville Fire Pension and Relief Fund U/A dated 6-18-86 December 29, 2011 Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund UIA DTD 6-18-86 December 29, 2011 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Common Stock 1,710 AT&T 24.39 41,702.95 30.17 51,590.70 1.1 1.76 3,009.60 7.22 1,575 Abbon Laboratories 4681 73,728.43 56.33 88,719.75 1.8 1.92 3,024.00 4.10 2,000 American Electric 33.69 67,374.79 41.54 83,080.00 1.7 1.98 3,760.00 5.58 Power Co.,Inc. 1,650 Amber-Damels-Midland 32.01 52,809.08 28.74 47,421.00 Lo 0.70 1,155.00 2.19 Co. 2,300 BCE,Inc. 24.40 56,110.11 41.12 94,576.00 1.9 2.11 4,859.90 8.66 925 Chevron Corp. 73.07 67,592.17 107.47 99,409.75 2.0 3.24 2,997.00 4.43 3,000 Cisco Systems,Inc. 17.43 52,302.90 18.25 54,750-00 1.1 0.24 720.00 1.38 1,100 Coca-Cola 52.79 58,074.28 70.16 77,176.00 1.6 1.88 2,068.00 3.56 1,200 ConocoPhillips 58.30 69,958.30 72.87 87,444.00 1.8 2.64 3,168.00 4.53 1,000 Emerson Electric Co. 38.01 38,012.30 46.63 46,630.00 1.0 1.60 1,600.00 4.21 6,000 General Electric 15.96 95,766.01 18.07 108,420.00 2.2 0.68 4,080.00 4.26 900 Germine Parts Co. 36.65 32,986.53 61.96 55,764.00 1.1 1.80 1,620.00 4.91 2,000 GIaxoSmithKlmc PLC 38.47 76,936.20 45.68 91,360.00 L9 2.21 4,411.40 5.73 3,725 Intel Corp. 17.61 65,581.48 24.55 91,448.75 1.9 0.94 3,129.00 4.77 450 International Businms 122.43 55,091.76 186.18 83,781.00 1.7 3.00 1,350.00 2.45 Machines Corp. 1,115 Johnson&Johnson 60.77 67,758.33 65.88 73,456.20 1.5 2.28 2,542.20 3.75 1,150 Kimberly-Clark 60.71 69,811.20 74.00 85,100.00 1.7 2.80 3,220.00 4.61 Corporation 2,700 Microsoft Corp. 26.30 71,001.40 26.02 70,254.00 1.4 0.90 2,160.00 3.04 1,675 Oracle Corp. 15.70 26,297.33 25.80 43,215.00 0.9 0.24 402.00 1.53 4,120 Pfaff Inc. 16.52 68,077.88 21.71 89,445.20 L8 0.88 3,625.60 5.33 1,400 Procter&Gamble Co. 50.46 70,641.98 66.97 93,758.00 1.9 2.10 2,940.00 4.16 1,400 Wal-Mart Storm Inc. 50.36 70,497.97 59.99 83,986.00 1.7 1.46 2,044.00 2.90 2,750 iShmm Dow Jones 47.40 130,336.25 54.16 148,940.00 11 1.84 5,064.26 3.89 Select Dividend Index 1,478,449.63 1,849,725.35 37.9 62,949.96 4.35 Mutual Funds-Equity 33,303.6230 Northern Stock Index 14.71 489,950.00 15.48 515,540.08 10.6 0.20 6,594.12 1.35 Fund Other Income Securities 2,500 Duke Energy 19.16 47,900.00 22.06 55,150.00 1.1 1.00 2,500.00 5.22 Corporation 11,500 Guggenheim 20.53 236,132.18 20.47 235,405.00 4.8 1.08 12,385.50 5.25 Multi-Asset Income Index 3,500 Utilities Select Sector 31.96 111,858.95 36.24 126,840.00 2.6 1.35 4,727.35 4.23 SPDR Fund 395,89L13 417,395.00 8.6 19,612.85 4.93 Mutual Funds-Fixed 1,400.0000 iShares Barclays 7-10 104.43 146,198.70 105.20 147,280.00 3.0 2.75 3,854.38 2.64 Your T-Bond Fund 5,000.0000 iSharm;iBoxx 106.90 534,506.93 113.28 566,400.00 11.6 5.03 25,171.30 4.71 Investment Grade Corp Bond 680,705.63 713,680.00 14.6 29,025.68 4.28 I LLONGER INVESTMENTS INCORPORATED A Registered Investineni Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund UIA D TD 6-18-86 December 29, 2011 Unit Total Market pet. Unit Annual Car. Quantity Security Cost Cost Price Value Assets Income Income Yield Preferred Debt Securities 5,000 AT&T Preferred 24.99 124,939.00 26.82 134,100.00 2.7 1.59 7,968.75 6.38 6.375%A2/A-(C 2-12-12) 5,000 G.E.Preferred 6.10% 24.98 124,888.90 25.82 129,099.50 2.6 1.53 7,625.00 6.11 Aa2/AA+(C 11-15-07) 2,000 G.F.Preferred 6.625% 25.02 50,049.50 26.39 52,780.00 1.1 1.66 3,312.50 6.62 Aa2/AA+(C 6-28-07) - 299,876.40 315,979.50 6.5 18,906.25 6.31 Corporate Bonds 50,000 Hershey Foods Corp. 9T63 49,816.00 103.42 51,711.80 1.1 6.95 3,475.00 7.12 Notes A2/A(NC) 6.950%Due 08-15-12 50,000 IBM Crap.Debentures 100.01 50,004.00 136.81 68,403.45 1.4 7.00 3,500.00 7.00 Al/Aa3(Subject to make whole call) 7.000%Due 10-30-25 Accrued Interest 1,867.08 0.0 98,820.00 121,982.33 2.5 6,975.00 7.05 Governm&t Bonds 400,000 U.S.Treasury Note 102.22 408,875.00 117.56 470,250.00 9.6 4.00 16,000.00 3.91 4.000%Due 08-15-18 Accrued Interest 5,913.04 0.1 408,875.00 476,163.04 9.8 16,000.00 3.91 Government Agency 200,000 Federal Home Loan 100.00 200,000.00 100.05 200,099.40 4.1 6.00 12,000.00 6.00 Bank(Call 1-3-12 @ 100, IX) 6.000%Due 07-03-17 Accrued Intentsa 5,866.67 0.1 200,000.00 205,966.07 4.2 12,000.00 6.00 Cash and Equivalents Dividends Accrued 3,980.90 3,980.90 0.1 0.00 0.00 0.00 Money Market 261,203.09 261,203.09 5.4 0.01 26.12 0.01 265,183.99 265,183.99 5.4 26.12 0.01 TOTAL PORTFOLIO 4,317,751.78 4,881,615.37 100.0 172,089.98 4.05 2 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. REALIZED GAINS AND LOSSES WITH INCOME AND EXPENSES SUMMARY Fayetteville Fire Pension and Relief Fund UIA DTD 6-18-86 From 01-01-11 Through 12-29-11 Realized Gains and Losses Short-Term 36,357.43 Long-Term 113,852.40 TOTAL REALIZED GAINS AND LOSSES 150,209.83 Income and Expenses Income: Common Stock 65,226,35 Mutual Funds-Equity 331.02 Other Income Securities 9,294.35 Mutual Funds-Fixed 24,990.52 Preferred Debt Securities 18,078.12 Corporate Bonds 6,975.00 Government Bonds 24,884.95 Government Agency 13,406.25 Cash and Equivalents 25.21 Expenses: Foreign Tax on Dividends 777.43 Miscellaneous Expense 5.00 Northern Trust Fee 3,829.12 Management Fee 46,526.24 NET INCOME 112,073.98 LONGER INVESTMENTS INCORPORATED A Registered hivesimnit AdVISOT Longer Investments Inc. PERFORMANCE SUMMARY Fayetteville Fire Pension and Relief Fund UIA DTD 6-18-86 August 15, 2002 through December 29, 2011 Equity Mutual Fixed- Equities Funds Income REITs Total 2002 -5.8% -12.0% 4.4% 5.1% -1.2% 2003 29.5% 16.2% 3.0% 22.7% 13.3% 2004 7.6% 7.2% 3.4% 30.1% 6.6% 2005 -0.4% 20.7% 2.3% 6.1% 1.6% 2006 17.3% 16.7% 3.1% -- 10.4% 2007 11.1% 2.0% 5.7% 8.0% 2008 -40.4% -38.5% 5.3% -- -20.1% 2009 29.1% 23.7% 3.5% 17.1% 16.3% 2010 12.5% 9.4% 8.0% -- 11.5% 2011 (through 12129) 5.6% -13.9% 7.4% -4.4% 5.2% Cumulative Return: 55.7% 13.0% 56.8% 99.3% 57.8% Annualfted Return: 4.8% 1.3% 4.9% 19.7% 5.0% Index Returns 2011 (through 12129) S&P 500 (cash basis) 0.3% S&P 500 (inc. div.) 2.6% Lehman 1-5 Yr Govt/Corp 3.1 ON, 50%-50% S&P 500/Lehmaj 2.0% 1-5 Yr Govt/Corp Annualized Index Returns (inception to 12129111) S&P 500(cash basis) 3.3% S&P 500(inc. div.) 5.4% Lehman 1-5 Yr Govt/Corp 4.1% 50%-50% S&P 500/Lehmai 4.1% 1-5 Yr Govt/Corp Returns are reported net of allfees and expenses. LONGER INVESTMENTS INCORPORATED ARegisteredinvestment Advisor Longer Investments Inc. CONTRIBUTIONS/WITHDRAWALS Fayetteville Fire Pension and Relief Fund UIA DTD 6-18-86 From 01-01-11 To 12-29-11 Tran Trade Settle Broker Code Date Date Security Amount Quantity Code Commission CONTRIBUTIONS dp 06-13-11 06-13-11 Money Market 33.64 Royal Dutch Shell litigation settlement 33.64 VUTHDRAWALS wd 01-01-11 01-01-11 Money Market 113,000.00 wd 02-01-11 02-01-11 Money Market 100,000.00 wd 03-01-11 03-01-11 Money Market 107,000.00 wd 04-01-11 04-01-11 Money Market 96,000.00 wd 05-01-11 05-01-11 Money Market 108,000.00 wd 07-01-11 07-01-11 Money Market 73,000.00 wd 09-01-11 09-09-11 Money Market 88,000.00 wd 10-01-11 10-01-11 Money Market 104,000.00 wd 11-01-11 11-10-11 Money Market 70,000.00 wd 12-15-11 12-15-11 Money Market 60,000.00 January distribution 919,000.00 EXPENSE ACCOUNTS dp 01-15-11 01-15-11 Foreign Tax on Dividends 159.30 dp 04-15-11 04-15-11 Foreign Tax on Dividends 176.11 dp 07-15-11 07-15-11 Foreign Tax on Dividends 186.07 dp 09-08-11 09-08-11 Foreign Tax on Dividends 56.55 dp 09-15-11 09-15-11 Foreign Tax on Dividends 24.00 dp 10-15-11 10-15-11 Foreign Tax on Dividends 175.40 dp 06-13-11 06-13-11 Miscellaneous Expense 5.00 Class action service charge dp 01-31-11 01-31-11 Northern Trust Fee 369.78 dp 02-28-11 02-28-Il Northern Trust Fee 370.37 dp 03-31-11 03-31-11 Northern Trust Fee 341.97 dp 04-29-11 04-29-11 Northern Trust Fee 368.31 dp 05-31-11 05-31-11 Northern Trust Fee 361.39 dp 06-30-11 06-30-11 Northern Trust Fee 380.93 dp 07-29-11 07-29-11 Northern Trust Fee 324.67 dp 08-31-11 08-31-11 Northern Trust Fee 332.64 elp 09-30-11 09-30-11 North=Trust Fee 357.70 dp 10-31-11 10-31-11 Northern Trust Fee 300.51 dp 11-30-11 11-30-11 North=Trust Fee 320.85 4,611.55 AFTER FEE PERFORMANCE EXPENSE ACCOUNTS dp 01-10-11 01-10-11 Management Fee 12,230.28 dp 04-11-11 04-11-11 Management Fee 11,911.96 elp 07-12-11 07-12-11 Management Fee 11,474.52 dp 10-10-11 10-10-11 Management Fee 10,909.48 46,526.24 PORTFOLIO NET TOTAL -970,104.15 I LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. CONTRIBUTIONSfArITHDRAWALS Fayetteville Fire Pension and Relief Fund UIA D TD 6-18-86 From 01-01-11 To 12-29-11 Tran Trade Settle Broker Code Date Date Security Amount Quantity Code COMFWSSiOn EXPENSE ACCOUNTS PAID BY CLIENT 0.00 AFTER FEE PERFORMANCE EXPENSE ACCOUNTS PAID BY CLIENT 0.00 GRAND TOTAL -970,104.15 2 LONGER INVESTMENTS 1NCORPORATED A Registered Investmew Advisor December 29, 2011 Fayetteville Fire Pension and Belief Fund UIA DTD 6-18-86 113 West Mountain Fayetteville,Arkansas 72701 Longer investments Inc. STATEMENT OF MANAGEMENT FEES For The Period Ending December 29,2011 Portfolio Valuation as of 12-29-11 $ 4,967,968.57 3,000,000 @ 1.000%per annum 7,500.00 1,867,969 @0.750%per annurn 3,502.44 Quarterly Management Fee 11,002.44 TOTAL DUE AND PAYABLE 11,002.44 Pursuant to Section 204-3 of the Investment Advisers Act of 1940,Part 11 of Form ADV is available to all clients of Longer Investnimts 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 respunsibility of the client to verify,the accumcy of the fee calculation. The custodian will not deternime if the fee is property calculated. LONGER INVESTMENTS INCORPORATED A Regislered Investment Advisor Longer Investments Inc. REALIZED GAINS AND LOSSES Fayetteville Fire Pension an d Belief Fund UIA D TD 6-18-86 From 01-01-11 Through 12-29-11 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 09-14-10 01-03-11 1,150 Applied Materials Inc. 12,698.42 16,122.72 3,424.30 11-05-10 01-03-11 2,650 Steel Dynamics Inc. 42,454.86 49,315.93 6,861.07 11-08-10 01-03-11 350 Steel Dynamics Inc. 5,594.09 6,513.42 919.33 12-13-10 01-07-11 1,250 Financial Select Sector SPDR 19,761.00 20,264.03 503.03 Fund 11-04-10 01-07-11 200 Financial Select Sector SPDR 3,030.78 3,242.25 211.47 Fund 03-02-10 01-07-11 400 Exxon Mobil Corp. 26,304.00 30,232.56 3,928.56 12-09-10 01-07-11 400 Intel Corp. 8,828.00 8,199.98 -628.02 03-16-10 01-07-11 185 Intel Corp. 4,071.85 3,792.49 -279.36 03-02-10 01-07-11 740 Intel Corp. 15,460.37 15,169.96 -290.41 06-09-10 01-11-11 2,100 Bristol-Myers Squibb 50,986.53 53,585.84 2,599.31 Company 06-14-10 01-12-11 1,250 Archer-Daniels-Midland Co. 32,342.75 40,690.81 8,348.06 12-13-10 01-12-11 -14 Chevron Corp.January 85 10,821.43 5,519.91 -5,301.52 Calls 12-20-10 01-12-11 2,000 Duke Energy Corporation 35,580.00 35,209.60 -370.40 08-10-10 01-12-11 2,500 Duke Energy Corporation 44,330.75 44,012.00 -318.75 08-11-10 01-12-11 500 Duke Energy Corporation 8,625.00 8,802.40 17T40 06-22-01 01-18-11 50,000 Tennessee Valley Authority 49,474.00 50,000.00 526.00 (NC) 5.625%Due 0 1-18-11 12-08-10 01-18-11 250.0000 iShares Barclays 20+Year 23,217.60 22,730.86 -486.74 T-Bond Fund 01-13-11 01-18-11 1,085 Citigroup,Inc. 5,578.09 5,234.91 -343.18 11-04-10 01-18-11 1,725 Financial Select Sector SPDR 26,140.48 28,552.51 2,412.03 Fund 10-05-10 01-18-11 275 Financial Select Sector SPDR 4,066.87 4,551.85 484.99 Fund 01-13-11 01-21-11 1,415 Citigroup,Inc. 7,274.66 6,807.01 -467.65 01-07-11 01-21-11 1,225 Citigroup,Inc. 6,111.40 5,892.99 -218.41 01-03-11 01-21-11 1,275 Citigroup,Inc. 6,271.73 6,133.52 -138.21 12-13-10 01-21-11 5,600 Cifigroup,Inc. 27,384.00 26,939.40 -444.60 12-22-10 01-21-11 1,500 Citigroup,Inc. 7,155.30 7,215.91 60.61 07-13-10 01-24-11 300 Northern Trust Corporation 15,013.14 15,866.66 953.52 08-19-10 01-24-11 500 Northem Trust Corporation 24,598.60 26,444.44 1,845.84 09-16-10 01-24-11 300 North=Trust Corporation 14,701.52 15,866.67 1,165.15 12-08-10 01-24-11 325.0000 iShares Barclays 20+Year 30,182.88 29,786.71 -396.17 T-Bond Fund 12-30-10 01-24-11 175.0000 iShares Barclays 20+Year 16,225.19 16,039.00 -186.19 T-Bond Fund 05-12-09 01-24-11 1,500 Merck&Co.Inc. 37,897.65 50,680.87 12,733.22 12-06-10 01-29-11 800 Allergan Inc. 54,961.60 55,083.58 121.98 10-13-10 01-28-11 400 Danaber Corp. 16,743.00 18,512.70 1,769.70 09-14-10 01-28-11 165 Danaher Corp. 6,613.84 7,636.49 1,022.65 12-07-10 01-29-11 450 Medicis Pharmaceutical Corp. 12,390.53 11,372.63 -1,017.90 12-06-10 01-28-11 1,550 Medicis Pharmaceutical Corp. 41,810.94 39,172.39 -2,63&55 01-12-11 01-28-11 -14 Chevron Corp.February 90 5,927,24 5,033.83 -893.41 Calls 01-13-11 01-31-11 160 Google Inc. 98,989.87 96,023.80 -2,966.07 03-18-09 01-31-11 575 Oracle Corp. 9,027.44 18,324.89 9,297.45 11-17-08 01-31-11 55 AT&T 1,463.63 1,498.72 35.09 04-13-09 01-31-11 565 AT&T 14,675.42 15,395.95 720.53 07-23-09 01-31-11 355 AT&T 9,169.30 9,673.56 504.26 08-28-09 02-01-11 400 Chevron Corp. 28,310.84 38,370.46 10,059.62 I LONGER INVESTMENTS INCORPORATED A Reptered hivesininif AdY1501 Longer Investments Inc. REALIZED GAINS AND LOSSES Fayweville Fire Pension and Relief Fund UIA DTD 6-18-86 From 01-01-11 Through 12-29-11 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 03-02-10 02-01-11 125 Exxon Mobil Corp. 8,220.00 10,392.30 2,172.30 01-24-11 02-01-11 1,600 Paychex,lnc. 53,196.00 52,185.71 -1,010.29 09-14-10 02-01-11 325 Devon Energy Corp. 20,087.96 28,931.30 8,84334 12-30-10 02-02-11 400.0000 iSharcs Barclays 20+Year 37,086.15 35,991.31 -1,094.84 T-Bond Fund 12-14-10 02-02-11 350.0000 iShares Barclays 20+Year 32,346.76 31,492.39 -854.37 T-Bond Fund 01-31-11 02-02-11 550.0000 iShares Barclays 20+Year 50,281.00 49,488.05 -792-95 T-Bond Fund 11-04-10 02-03-11 300 Home Depot,Inc. 9,585.00 10,963.64 1,378.64 11-04-10 02-04-11 785 General Electric 12,872.98 16,030.25 3,157.27 05-20-10 02-04-11 300 ConocoPlullips 15,518.43 21,454.45 5,936.02 10-05-10 02-04-11 2,725 Financial Select Sector SPDR 40,299.94 44,893.51 4,594.58 Fund 10-18-10 02-04-11 275 Financial Select Sector SPDR 4,006.75 4,530.54 523.79 Fund 10-01-10 02-04-11 1,000 Financial Select Sector SPDR 14,440.30 16,474.68 2,034.38 Fund 01-07-11 02-08-11 260 Teva Pharmaceuticals 14,001.00 13,540.59 460.41 Industries Ltd. 12-16-10 02-08-11 1,000 Teva Pharmaceuticals 52,177.50 52,079.19 -98.31 Industries Ltd. 09-13-10 02-09-11 150.0000 iShares MSCI All Country 8,740.50 9,127.37 386.87 Asia ex Japan Idx 07-26-10 02-09-11 385.0000 iShares MSCI All Country 21,679.70 23,426.91 1,747.21 Asia ex Japan Idx 09-14-10 02-09-11 3,000 Applied Materials Inc. 33,126.30 47,414.68 14,288.38 01-19-11 02-09-11 250,0000 Market vectors Gulf States 5,997.50 5,851.51 -145.99 Index ETF 01-24-11 02-09-11 1,170 Nucor Corporation 53,034.93 54,823.15 1,798.22 01-24-11 02-09-11 140 Powershams Dynamic 2,402.74 2,520.06 117.32 Serniconductors 11-09-09 02-10-11 170.0000 iShares MSCI Hong Kong 2,743.60 3,136.44 39184 Index Fund 01-13-10 02-10-11 555.0000 iShares MSCI Hong Kong 8,912.41 10,239.55 1,327.14 Index Fund 01-28-11 02-11-11 475 Market vectors Gold Miners 25,935�95 26,801.59 865.64 01-13-10 02-11-11 500.0000 iSharts MSCI Singapore 5,884.80 6,619.87 735.07 Ind"Food 11-16-09 02-11-11 775.0000 iShares MSCI Singapore 9,028.91 10,260.80 1,231.89 Index Food 05-17-10 02-14-11 150 International Business 19,472.76 24,442:17 4,969.41 Machines Corp. 01-04-11 02-16-11 1,000 Amgen Inc. 56,831.10 52,462.29 4,368.81 01-31-11 02-17-11 825 ProShares Short S&P 500 35,450.25 33,780�54 -1,669.71 01-13-11 02-22-11 450 Wal-Mart Stores Inc. 24,840.00 24,068.10 -771.90 09-13-10 02-22-11 300 Wal-Mart Stores Inc. 15,696.00 16,045.40 349.40 01-07-11 02-23-11 1,350 Jacobs Engineering Group 60,919.43 65,919.37 4,999.94 Inc. 12-10-10 02-23-11 150 Jacobs Engineering Group 6,437.70 7,324.37 896.67 Inc. 01-28-11 02-23-11 425 Marathon Oil Corporation 19,034,77 21,273.22 2,238.45 02-17-11 02-23-11 1,150 Newmont Mining Corp. 67,919.00 68,023.72 104.72 02-18-11 02-24-11 300 Boeing Co. 21,873.00 21,591.60 -281.40 02-17-11 02-24-11 1,000 Boeing Co. 72,224.40 71,972.02 -252.38 2 LLONGER INVESTMENTS INCORPORATED 4 A Regislered Invesiment Advisor Longer Investinents Inc. REALIZED GAINS AND LOSSES Fayetteville Fire Pension and Relief Fund UIA DTD 6-18-86 From 01-01-11 Through 12-29-11 Gain Or Loss Open Close Cost Date Date QuIlAtity security Basis Proceeds Short Term Long Term 01-31-11 02-24-11 2,425 ProShares Short S&P 500 104,202.25 102,236.03 -1,966.22 01-24-11 03-01-11 3,000 Powershares Dynamic 51,487.20 52,783.98 1,296.78 Senoconductors 01-18-11 03-07-11 175 J.P.Morgan Chase&Co. 7,845.25 7,859.10 13.85 12-22-10 03-07-11 635 J.P.Morgan Chase&Co. 26,663,65 29,517.30 1,853.65 12-13-10 03-07-11 115 J.P.Morgan Chase&Co. 4,778.49 5,164.55 386.06 10-19-10 03-08-11 550 Ametican Electric Power Co., 20,317.13 19,616.58 -700.55 Inc. 12-20-10 03-08-11 450 American Electric Power Co., 16,157.75 16,049.93 -107.82 Inc. 01-28-11 03-08-11 1,000 Market Vectors Gold Miners 54,602.00 58,948.86 4,346.86 12-06-10 03-15-11 325 Alexander&Baldwin,Inc. 12,232.64 12,838.36 605.72 11-04-10 03-15-11 1,500 Alexander&Baldwin,Inc. 53,853.45 59,253.96 5,400.51 05-17-10 03-15-11 15 International Business 1,947.28 2,386.15 438.87 Machines Corp. 06-04-10 03-15-11 160 International Business 20,264.42 25,452.31 5,187.89 Machines Corp. 03-14-11 03-15-11 2,220 NVIDIA Corporation 40,570.06 38,174.38 -2,395.68 03-14-11 03-15-11 760 Boeing Co. 53,670.19 52,562.40 -1,107.79 02-16-11 03-17-11 1,000.0000 iSbares MSCI Japan Index 11,560.00 10,029.80 -1,530.20 Fund 10-01-10 03-21-11 1,000 Financial Select Sector SPDR 14,440.30 16,230.78 1,790.48 Fund 02-16-11 03-21-11 875.0000 iShares MSCI Japan Index IO'l 15�00 9,200.44 -914.56 Fund 02-08-11 03-21-11 125.0000 iShares MSCI Japan hid" 1,431.00 1,314.35 -116.65 Fund 10-13-10 03-21-11 550.0000 Japan Smaller Capitalization 4,566.10 4,911.40 34530 Fund hie. 03-21-11 03-24-11 630.0000 iShares Barclays 2D+Year 58,533.30 58,242.38 -290.92 T-Bond Fund 11-15-10 03-25-11 150,000 U.S.Treasury Note 153,000.00 148,500.00 4,500.00 4.375%Due 02-15-38 03-21-11 03-25-11 1,625 ProShares Short S&P 500 68,543.64 67,298.73 -1,244.91 03-02-11 03-25-11 3,250 ProShares Short S&P 500 136,371.95 134,597.46 -1,774.49 02-22-11 03-25-11 370.0000 iShares Barclays 20+Year 33,559.99 34,260.23 700.34 T-Bond Fund 02-22-11 03-30-11 715.0000 iShares Barclays 20+Year 64,852.21 65,544.07 691.86 T-Bond Fund 02-10-11 03-30-11 285.0000 iShares Barclays 20+Year 25,342.86 26,125.96 783.10 T-Bond Fund 10-13-10 03-30-11 500.0000 Japan Smaller Capitalization 4,151.00 4,501.66 350.66 Fund Inc. 02-09-11 03-31-11 135,000 U.S.Treasury Note 2.373% 135,013.10 135,885.94 872.84 YTM 2.375%Due 03-31-16 10-13-10 04-01-11 450.0000 Japan Smaller Capitalu;ation 3,735.90 3,994.43 258.53 Fund Inc. 10-18-10 04-01-11 150.0000 Japan Smaller Capitalintion 1,245.00 1,331.48 86.48 Fund hic. 02-10-11 04-04-11 400,0000 iShares Barclays 20+Year 35,568.92 36,911.29 1,342.37 T-Bond Fund 03,02-10 04-04-11 500 Intel Corp. 10,446.20 9,695.01 -751.19 03-30-11 04-05-11 135 Google Inc. 78,931.61 77,165.90 -1,765.71 3 LLONGER INVESTMENTS INCORPORATED it A Registered Invesinleirl Advisor Longer Investments Inc. REALIZED GAINS AND LOSSES Fayetteville Fire Pension and Relief Fund UIA DTD 6-18-86 From 01-01-11 Through 12-29-11 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Tem 02-10-11 04-05-11 600.0000 iSharcs Barclays 20+Year 53,353.38 55,048.94 1,695,56 T-Bond Fund 02-08-11 04-05-11 1,650.0000 iSbares MSCI Japan Index 18,989.20 16,384.18 -2,505.02 Fund 08-23-04 04-05-11 225.0000 iSbates MSCI Japan Index 2,216-25 2,234.21 17.96 Fund 02-09-11 04-05-11 65,000 U.S.Treasury Note 2.373% 65,006.31 65,365.62 359.31 YTM 2.375%Due 03-31-16 09-14-10 04-06-11 190 Devon Energy Corp. 11,743.73 17,256.85 5,513.12 03-29-11 04-06-11 200 United States Steel Corp. 11,363.26 10,901.29 -461.97 03-25-11 04-06-11 300 United States Steel Corp. 16,726.74 16,351.93 -374.81 12-20-10 04-07-11 250 American Electric Power Co., 8,976.53 8,837.33 -139.20 Inc. 08-28-09 04-07-11 115 Chevron Corp. 8,139.37 12,386.24 4,246.87 06-05-09 04-07-11 110 Chevron Corp. 7,621.93 11,847.70 4,225.77 08-23-04 04-07-11 1,625.0000 iShaves MSCI Japan Index 16,006.25 15,924.69 -81.56 Fund 03-31-11 04-07-11 500 Utilities Select Sector SPDR 15,979.85 15,989.69 9.84 Fund 03-25-11 04-08-11 875 United States Steel Corp. 48,786.33 46,273.66 -2,512.67 03-31-11 04-08-11 125 United States Steel Corp. 6,807.41 6,610.52 -196.89 09-13-10 04-09-11 200 Wal-Mart Stores Inc. 10,464.00 10,507.79 43.79 06-11-10 04-08-11 50 Wal-Mart Stores Inc. 2,558.11 2,626.95 68.84 04-04-11 04-11-11 1,100 Teva Pharmaceuticals 55,231.33 53,702.50 -1,528.83 Industries Ltd. 04-07-11 04-12-11 2,000 Morgan Stanley 56,252.00 53,418.97 -2,833.03 03-29-11 04-12-11 1240 Qualcorrun Incorporated 67,047.67 64,416.76 -2,630.91 04-06-11 04-14-11 3,370 Bank of America Corporation 46,539.36 44,045.39 -2,493.97 04-05-11 04-15-11 2,000 Market vectors Junior Gold 81,649.20 81,938.42 289.22 Miners 04-12-11 04-19-11 350 Ryclex S&P Equal Weight 17,538.50 17,486.26 -52.24 03-25-11 04-19-11 2,650 Ryclex S&P Equal Weight 132,659.00 132,395.95 -263.05 04-06-11 04-19-11 425 Cisco Systems,Inc. 7,645.75 7,033.61 -612.14 04-05-11 04-20-11 1,750 Central Fund of Canada Ltd. 39,320.23 42,574.76 3,254.54 03-22-11 04-20-11 1,650 Petroleo Bmsileiro 66,325.71 61,948.05 4,377.66 04-12-11 04-20-11 3,165 Financial Select Sector SPDR 51,886.06 50,322.85 -1,563.21 Fund 01-11-11 04-21-11 1,500 Gilead Sciences hic. 55,448.55 59,478.65 4,030.10 04-05-11 04-25-11 250 Central Fund of Canada Ltd. 5,617.18 6,230.91 613.74 03-28-11 04-27-11 1,500 Nucor Corporation 70,23731 68,668.68 -1,568.63 04-05-11 04-28-11 825 Central Food of Canada Ltd. 18,536.68 20,844.29 2,307.61 04-28-11 04-29-11 350 Research In Motion Ltd. 19,790.26 17,071.87 -2,718.39 04-05-11 05-02-11 675 Central Fund of Canada Ltd. 15,166.37 16,155.87 989.50 03-30-11 05-02-11 150.0000 iShara;MSCI Emerging 7,266.00 7,553,85 287.85 Markets Index Fund 03-25-11 05-02-11 200.0000 iShares MSCI Emerging 9,504.00 10,071.81 567.81 Markets Ind"Fund 04-05-11 05-03-11 500 Central Fund of Canada Ltd. 11,234.35 11,530.07 295.72 05-20-10 05-03-11 200 ConocoPhillips 10,345.62 14,981.57 4,635.95 04-28-11 05-03-11 650 Research In Motion Ltd. 36,753.34 31,224.94 -5,529.40 04-29-11 05-03-11 825 Peabody Energy Corp 54,366.51 53,431.25 -935.26 03-22-11 05-04-11 150.0000 iShares MSCI Brazil Index 11,211.00 11,092.28 -118.72 Fund 4 LONGER INVESTMENTS INCORPORATED A Registered hivesimeiv Advisor Longer Investments Inc. REALIZED GAINS AND LOSSES Fayetteville Fire Pension and Relief Fund UIA DTD 6-18-86 From 01-01-11 Through 12-29-11 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 04-08-11 05-05-11 3,000 Marvell Technology Group 49,582.50 44,099.14 -5,483.36 Ltd. 04-11-11 05-05-11 350 Marvell Technology Group 5,564.90 5,144.90 -420.00 Ltd. 04-19-11 05-05-11 150 Marvell Technology Group 2,269.50 2,204.96 -64.54 Ltd. 05-05-11 05-06-11 1,335 Central Food of Canada Ltd. 27,536.78 27,782.81 246.03 10-09-07 05-10-11 15 Microsoft Corp. 454.31 381.44 -72.87 01-29-10 05-10-11 970 Microsoft Corp. 28,401.50 24,666.62 -3,734.88 08-08-08 05-10-11 885 Microsoft Corp. 24,859.65 22,505.12 -2,354.53 10-18-10 05-10-11 360 Microsoft Corp. 9,349.20 9,154.62 -194.58 09-14-10 05-10-11 780 Mictosoft Corp. 19,601.40 19,835.02 233.62 03-25-11 05-12-11 400.0000 iShares MSCI Emerging 19,008.00 18,879.63 -128.37 Markets Index Fund 03-31-11 05-13-11 250.0000 iShares FTSE China Index 11,228.10 10,737.29 -490.81 Fund 04-12-11 05-13-11 3,285 Financial Select Sector SPDR 53,853.31 51,573.50 -2,279.81 Fund 05-06-11 05-13-11 3,500 ProShares Short S&P 500 141,400.00 141,983.86 583.86 05-13-11 05-16-11 150 Google Inc. 80,1 48�11 77,691.00 -2,457.11 04-27-11 05-18-11 220 Staples,Inc. 4,690.40 3,649.72 -1,040.68 05-16-11 05-18-11 2,185 Market vectors Junior Gold 77,359.93 76,878.62 481.31 Miners 03-09-11 05-19-11 300 Allergan Inc. 21,539.13 25,083.74 3,544.61 09-14-10 05-19-11 595 Devon Energy Corp. 36,158.32 48,214.19 12,055.87 04-27-11 05-20-11 725 Staples,Inc. 15,457.00 11,940.51 -3,516.49 04-26-11 05-23-11 400 Ford Motor Co. 6,409.20 5,899.89 -509.31 04-14-11 05-23-11 3,250 Ford Motor Co. 48,018.75 47,936.57 -82.18 09-23-04 05-25-11 250.0000 iShares MSCI Japan Index 2,462.50 2,461.20 -1.30 Fund 04-27-11 05-25-11 1,575 Staples,Inc. 33,579.00 26,349,24 -7,229.76 06-08-09 05-25-11 625.0000 iShares S&P Europe 350 20,386.00 26,286.68 5,900.68 Index 05-13-11 05-26-11 220 Target Corp. 11,341.00 10,852.39 488.61 05-11-11 05-26-11 580 Target Corp. 29,602.56 28,610.85 -991.71 05-25-11 05-27-11 500 Diannonds Trust Series 1 61,751.65 62,100.85 349.20 04-26-11 05-27-11 250 Wal-Mart Stores Inc. 13,542.50 13,689.74 147.24 06-11-10 05-27-11 215 Wal-Mart Stores Inc. 10,999.88 11,773.17 773.29 03-18-09 05-27-11 35 Wal-Mart Stores Inc. 1,747.06 1,916.56 169.50 05-13-11 05-27-11 750 Clorox Corporation 53,209.13 51,949.93 -1,259.20 05-11-11 05-31-11 700 Target Corp. 35,727.23 34,540.13 -1,187.10 05-25-11 06-01-11 635 Diamonds Trust Series 1 78,424.60 77,913.00 -511.60 05-13-11 06-06-11 1,650 Best Buy Co.Inc. 53,220.75 49,410.77 -3,809.98 06-02-11 06-06-11 1,000 Powershares QQQ Trust 57,143.40 55,948.92 -1,194.48 Series I-NASDAQ 05-23-11 06-08-11 885 Peabody Energy Corp 51,069.90 49,514.79 -1,555.11 06-07-11 06-09-11 950 Diamonds Trust Series 1 115,330.00 114,605.79 -724.21 05-20-11 06-09-11 1,350 Freeport-McMoRan Copper 65,963.70 66,929.11 865.41 &Gold 05-26-11 06-09-11 2,150 NVIDIA Corporation 40,011.50 36,992.61 -3,018.89 06-02-11 06-10-11 35 Apple hie. 12,145.43 11,478.03 -667.40 05-27-11 06-10-11 200 Apple Inc. 67,409.14 65,598.74 -1,820.40 03-30-11 06-10-11 275,0000 iSharces MSCI All Country 17,303.00 16,692.17 -610.83 Asia ex Japan ldx 03-09-11 06-10-11 450 Allergart hie. 32,308.70 35,757.84 3,449.14 5 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. REALIZED GAINS AND LOSSES Fayetteville Fire Pension and Relief Fund UIA DTD 6-18-86 From 01-01-11 Through 12-29-11 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 03-10-11 06-10-11 250 Allergen Inc. 17,907.40 19,965,47 1,958.07 06-22-10 06-10-11 500 Central Fund of Canada Ltd. 7,625.30 10,52939 2,904.49 06-02-11 06-10-11 25 G000e Inc. 13,150.98 12,785.47 -365.51 05-27-11 06-10-11 125 Google Inc. 65,092.13 63,927.36 -1,164.77 11-04-10 06-10-11 50 Home Depot,Inc. 1,597.50 1,691.59 94.09 07-26-10 06-10-11 450 Home Depot,Inc. 13,023.00 15,224.28 2,201.28 06-07-11 06-10-11 260 Joy Global,Inc. 23,530.75 22,866.56 -664.19 05-25-11 06-10-11 600 Joy Global,Inc. 52,15T58 52,769.98 611.40 06-22-10 06-13-11 1,000 Cenual Fund of Canada Ltd. 15,250.60 20,546.40 5,295.80 06-14-10 06-13-11 3,500 Central Fund of Canada Ltd. 52,658.20 71,912.41 19,254.21 05-20-11 06-13-11 620 Schlumberger Limited 52,192.96 51,516.73 -676.23 03-02-10 06-13-11 575 Exxon Mobil Corp. 37,812.00 45,600.19 7,788.19 06-09-10 06-13-11 225 Exxon Mobil Corp. 13,776.67 17,843.55 4,066,89 09-14-10 06-13-11 200 Exxon Mobil Corp. 12,204.00 15,860.93 3,656.93 12-13-10 06-14-11 1,200 J.P.Morgan Chase&Co. 49,862.52 50,326.79 464.27 06-08-09 06-15-11 1,390.0000 iShancs S&P Europe 350 45,338.46 56,754.69 11,416.23 Index 04-29-09 06-15-11 250.0000 iShares S&P Europe 350 7,199A0 10,207.68 3,00818 Index 04-13-09 06-15-11 610.0000 iShares S&P Europe 350 16,839.23 24,906.74 8,067.51 Index 04-05-11 06-16-11 720.0000 iShanes MSCI Australia 19,310.40 17,963.65 -1,346.75 Ind"Fund 05-27-11 06-16-11 160 Potash Corp.of 9,062.40 8,311.86 -750.S4 Saskatchewan,Inc. 05-20-11 06-16-11 1,000 Potash Corp.of 52,359.90 51,949.10 410.80 Saskatchewan,Inc. 03-30-11 06-20-11 100.0000 iPath MSCI India Index ETN 7,167.36 6,454.40 -712.96 05-24-11 06-23-11 380 Monsanto Co. 25,902.40 24,629.95 -1,272.45 05-23-11 06-23-11 795 Monsanto Co. 52,500.61 51,528.44 -972.17 06-23-11 06-28-11 500.0000 iShwcs Barclays 20+Yew 48,769.65 47,464.09 -1,305.56 T-Bond Fund 06-15-11 06-28-11 1,500.0000 iShares Barclays 20+Year 144,825.00 142,392.26 -2,432.74 T-Bond Fund 06-24-11 06-30-11 350 Standard&Peers Depository 44,613.35 46,076.61 1,463.27 Receipts 06-24-11 07-01-11 1,750 Standard&Peers Depository 223,066.73 231,443.38 8,376.66 Receipts 01-28-11 07-01-11 1 Marathon Petroleum Co. 18.07 20.10 2.03 01-28-11 07-06-11 537 Marathon Petroleum Co. 19,409.15 22,411.48 3,002.33 07-07-11 07-11-11 4,350 Financial Select Sector SPDR 68,097.51 65,901.23 -2,196.28 Fund 06-04-10 07-19-11 50 International Business 6,332.63 8,743.78 2,411.15 Machines Corp. 10-01-10 07-18-11 8,000 Financial Select Sector SPDR 115,522.40 115,990.56 468.16 Fund 06-14-11 07-18-11 2,500.0000 iShares Barclays 20+Year 239,110.25 238,571.16 -539.09 T-Bond Fund 06-14-11 07-21-11 2,500.0000 iShanes Barclays 20+Year 239,110.25 237,370A4 -1,739.81 T-Bond Fund 11-05-10 07-26-11 1,200 Illinois Too]Works Inc. 58,095.96 64,112.48 6,016.52 12-01-10 07-26-11 175 Illinois Tool Works Inc. 8,459.06 9,349.74 890.68 06-30-11 07-27-11 490 Jacobs Engineering Group 21,236.57 19,717.51 -1,519.06 Inc. 6 LLONGER INVESTMENTS INCORPORATED it, A Regislered Investment Advisor Longer Investments Inc. REALIZED GAINS AND LOSSES Fayefteville Fire Pension and Relief Fund UIA DTD 6-18-86 From 01-01-11 Yhrough 12-29-11 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 06-29-11 07-27-11 1,160 Jacobs Engineering Group 49,299.42 46,678.20 -2,621.22 Inc. 07-07-11 07-29-11 250 Fluor Corporation 16,595.80 15,928.54 -667.26 06-30-11 07-29-11 1,000 Fluor Corporation 64,999.00 63,714.17 -1,284.83 07-07-11 07-29-11 1,400 Nucor Corporation 57,932.00 53,848.14 A,083.86 07-21-11 07-29-11 485 Nucor Corporation 19,692.29 18,654.53 -1,037.76 07-25-11 08-02-11 275.0000 Market Vectors Vietnam ETF 5,498.08 5,211.14 -286.94 08-01-11 08-02-11 650 Deere&Co. 50,544.00 50,016�53 -527.47 07-22-11 08-02-11 1,275 SPDR DJ Wilshire Int'l Real 51,212.93 49,022.80 -2,190.13 Estate 08-01-11 08-03-11 2,500 Standard&Pours Depository 320,645.75 313,301.98 -7,343.77 Receipts 07-21-11 08-04-11 325.0000 iShanes MSCI Emerging 15,457.00 14,283.47 -1,173.53 Makers Index Fund 07-21-11 08-04-11 1,715 Northerni Trust Corporation 76,844.18 71,942.86 A,901.32 07-21-11 08-04-11 375.0000 iShares FTSE China Index 15,817.50 14,980.96 -836.54 Fund 04-08-11 08-05-11 500 Mattel hic. 12,795�00 12,080.21 -714.79 03-21-11 09-05-11 1,570 Mattel Inc. 39,092.57 37,931.88 -1,160.69 03-02-11 08-05-11 745 Standard&Poors Depository 94,96154 90,476.20 4,486.34 Receipts 08-03-11 09-08-11 2,325 Diamonds Trust Series 1 272,215.65 257,953.79 -14,261.86 08-10-11 08-11-11 800 Boeing Co. 47,664A8 46,523.66 -1,140.82 04-06-11 09-11-11 175 Cisco Systems,Inc. 3,148.25 2,731.70 A16.55 03-29-11 08-11-11 1,560 Cisco System,Inc. 27,197.51 24,351.12 -2,846.39 08-08-11 09-11-11 200 Market Vectors Gold Minas 11,230.00 11,897.73 667.73 08-05-11 08-11-11 1,515 Muket Vectors Gold Miners 85,019.07 90,125.31 5,106.24 08-02-11 08-11-11 1,755 Standard&Poom Depository 223,703.71 202,588.56 -21,115.15 Receipts 08-08-11 08-11-11 25 Standard&Poms Depository 2,910.33 2,885.88 -24.45 Receipts 08-03-11 08-12-11 2,500 NVIDIA Corporation 37,091.75 34,555.33 -2,536.42 08-08-11 08-12-11 1,750 Standard&Poors Depository 203,722.92 207,031.52 3,308.60 Receipts 08-08-11 08-12-11 1,000 iShares Dow Jones Select 47,395.00 48,003.47 608.47 Dividend Index 07-25-11 08-15-11 750 Petroleo Brusileira 25,839.30 21,644.58 -4,194.72 07-26-10 08-16-11 200 Home Depot,Inc. 5,788.00 6,601.65 813.65 09-14-10 08-16-11 1,150 Damaher Corp. 46,096.49 50,678.26 4,581.77 08-19-11 08-18-11 710 Devon Energy Corp. 46,472.48 45,403.62 -1,068.86 08-18-11 08-19-11 125 International Business 20,463.48 19,993.36 470.12 Machines Corp. 07-28-11 08-19-11 -10 ConocoPhillips August 72.5 0.00 2,162.66 2,162.66 Calls 08-19-11 08-23-11 1,000 Standard&Poors Depository 115,226.30 114,677.79 -548.51 Receipts 08-18-11 08-23-11 1,500 Powashares QQQ Trust 76,830.00 77,173.51 343.51 Series I-NASDAQ 07-25-11 08-26-11 750 Petmleo Bmsileiro 25,839.30 20,485.78 -5,353.52 08-18-11 08-29-11 600 Market Vectors Gold Minas 36,446.46 36,945.55 499.09 07-21-11 08-30-11 200 Duke Energy Corporation 3,832.00 3,739.92 -92.08 09-04-11 08-30-11 250.0000 iShmes MSCI EAFE Index 13,477.50 13,114.74 -362.76 Fund 08-23-04 08-30-11 1,250.0000 iShares MSCI Japan Index 12,312.50 12,038.65 -273.85 Fund 7 LONGER INVESTMENTS INCORPORATED A Registered Investment AdvisoT Longer Investments Inc. REALIZED GAINS AND LOSSES Fayetteville Fire Pension and Relief Fund UIA DTD 6-18-86 From 01-01-11 Yhrough 12-29-11 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 10-18-04 08-30-11 2,500.0000 iShares MSCI Japan Index 24,625.00 24,076.53 -548.47 Fund 08-04-11 08-31-11 250.0000 iShares MSCI EAFE Index 13,477.50 13,431.99 45.51 Fund 07-21-11 08-31-11 1,250.0000 Japan Smaller Capitalioation 10,721.38 9,546,19 -1,175.19 Fund Inc. 07-07-11 08-31-11 675 Marathon Oil Corporation 22,482.90 18,076.89 -4,406.01 08-01-11 08-31-11 125 Marathon Oil Corporation 3,840.00 3,347.57 -492.43 11-09-09 09-01-11 200 Genuine Parts Co. 7,330.34 11,035.92 3,705,58 07-23-09 09-01-11 160 AT&T 4,132.64 4,551.91 419.27 01-26-10 09-01-11 350 AT&T 8,890.00 9,957.31 1,067.31 10-24-08 09-01-11 455 AT&T 11,143.31 12,944.50 1,801.19 08-18-11 09-01-11 700 Allergan Inc. 51,104.06 56,957.34 5,853.28 08-06-09 09-02-11 100,000 U.S.Treasury Note 102,218.75 117,437.50 15,218.75 4.000%Due 08-15-18 08-18-11 09-06-11 1,000 Agnico-Eagle Mines Ltd 63,718,00 71,064.43 7,346.43 08-18-11 09-06-11 1,150 Market vectors Gold Miners 69,855.72 76,180.74 6,325.02 08-24-11 09-06-11 650 Schlumberger Limited 49,348.00 47,154.32 -2,193.68 08-01-11 09-08-11 175 Marathon Oil Corporation 5,376.00 4,554.92 -821.08 01-28-11 09-08-11 1,075 Marathon Oil Corporation 28,719.56 27,980.20 -739.36 08-19-11 09-08-11 1,100 Newmont Mining Corp. 64,999.00 71,853.25 6,854.25 09-02-11 09-12-11 600 iShares Dow Jones 48,634,68 46,169.11 -2,465.57 Ttansportation Average 08-18-11 09-15-11 1,000 Clorox Corporation 64,871.80 68,219.88 3,348.08 09-09-11 09-15-11 500 Standard&Poors Depository 58,135.00 60,168.84 2,033.94 Receipts 09-09-11 09-16-11 2,150 NVIDIA Corporation 30,752.53 33,137.96 2,385.43 09-09-11 09-19-11 2,250 First Trust Dow Jones 72,053.10 71,733.35 -319.75 Internet hidex 07-18-11 09-20-11 2,000 ConAgna Foods,Inc. 52,500.00 46,510.70 -5,989.30 08-31-11 09-20-11 1,000 E.I,DuPont de Nentours& 48,522.40 46,257.21 -2,265.19 Co. 09-06-11 09-20-11 600 E.I.DuPont de Nmours& 27,437.64 27,754.32 316.68 Co. 07-26-10 09-20-11 730 Home Depot,hie. 21,126.20 25,542.21 4,416.01 08-11-10 09-20-11 770 Home Depot,Inc, 21,644.62 26,941.78 5,297.16 09-08-11 09-20-11 525 EMC Corporation 11,724.93 11,582.54 -142.39 08-29-11 09-20-11 2,250 EMC Corporation 49,679.33 49,639.44 -39.89 08-19-11 09-20-11 750 iSivirts Dow Jones Select 36,058.05 37,994.27 1,936.22 Dividend Index 08-08-11 09-20-11 250 iShares Dow Jones Select 11,848.75 12,664.75 816.00 Dividend Index 09-02-11 09-21-11 250 Caterpillar Inc. 21,610�05 20,487.11 -1,122.94 08-24-11 09-21-11 600 Caterpillar Inc. 50,536.50 49,169.05 -1,367.45 08-26-11 09-21-11 850 Deere&Co� 61,418.03 63,706.27 2,288.24 09-21-11 09-22-11 1,350 ProShares Short S&P 500 58,914.00 62,166.30 3,252.30 09-20-11 09-22-11 150 ProSharcs Short S&P 500 6,527.93 6,907.37 379.44 09-26-11 09-22-11 875 Exxon Mobil Corp. 62,330.10 60,330.09 -2,000.01 09-08-11 09-22-11 725 Qualcomm Incorporated 37,692.68 35,489.88 -2,202.80 09-12-11 09-22-11 125 Qualcomm Incorporated 6,368.59 6,11&95 -249.64 09-20-11 09-23-11 2,700 ProSharcs Short S&P 500 117,502.65 123,437.57 5,934.92 08-19-11 09-23-11 1,310 Illinois Tool Works hie. 54,522.20 56,219.00 1,696.80 09-06-11 09-26-11 1,000 Bank of Nova Scotia 52,480.10 49,264.15 -3,215.95 09-26-11 09-26-11 3,150 PmShares Short S&P 500 144,102.42 143,007.25 -1,095.17 09-26-11 09-27-11 2,135 Market vectors Gold Miners 119,403.72 125,969.40 6,565.68 09-26-11 09-27-11 1,175 Newmont Mining Corp. 73,022.73 77,100.37 4,077.64 8 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments hic. REALIZED GAINS AND LOSSES Fayetteville Fire Pension and Relief Fund UIA DTD 6-18-86 From 01-01-11 Through 12-29-11 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 07-21-11 09-27-11 675 Paychex,lnc. 20,320.40 17,947.90 -2,372.50 07-19-11 09-27-11 300 Paychex,Inc. 8,921.67 7,976.85 -944.82 09-28-11 09-29-11 1,325 Peabody Energy Corp 48,887.07 48,517.65 -369.42 09-28-11 09-29-11 850 Deere&Co. 58,252.12 57,640.28 -611.84 08-30-11 09-29-11 1,000 Northrop Grumman Corp. 53,761.40 53,289.97 471.43 09-28-11 09-29-11 800 Schlumberger Limited 49,219.04 48,901.22 -317.82 09-27-11 09-29-11 1,470 ProShares ShoTtS&P500 64,821.12 66,877.39 2,056.27 09L,27-11 09-30-11 2,730 ProShares Short S&P 500 120,382.08 124,363.57 3,981.49 09130-11 10-06-11 1,000 iShams Dow Jones Select 49,045A0 48,593.86 451.24 Dividend Index 10,04-11 10-06-11 1,550 Freeport-McMoRan Copper 46,891.07 53,910.91 7,019.84 &Gold 09-30-11 10-06-11 1,500 Standard&Poors Depository 172,611.45 172,805.23 193.78 Receipts 10-03-11 10-06-11 500 Standard&Poors Depository 55,404.40 57,601.74 2,197.34 Receipts 05-12-11 10-07-11 425 Applied Materials Inc. 6,426.00 4,623.91 -1,802.09 05-11-11 10-07-11 900 Applied Materials Inc. 13,600.35 9,791.81 -3,808.54 10-04-11 10-07-11 695 Powershares QQQ Trust 35,607.14 37,82C65 2,217.51 Series I-NASDAQ 10-04-11 10-10-11 690 Powersbares QQQ Trust 35,350.98 38,370.16 3,019�18 Seriesl-NASDAQ 05-11-11 10-11-11 1,725 Applied Materials Inc. 26,067.34 18,836.81 -7,230.53 06-30-11 10-11-11 950 Applied Materials Inc. 12,454.50 10,373.89 -2,080.61 10-04-11 10-11-11 800 Deere&Co. 48,852.48 57,573.53 8,721.05 10-10-11 10-13-11 IOW0000 iShares Bautlays 20+Year 116,439.50 115,591.07 -848.43 T-Bond Fund 10-14-11 10-18-11 825 Market Vectors Gold Miners 47,561.25 45,947.24 -1,614.01 10-14-11 10-24-11 450 Market Vectors Gold Miners 25,942.50 24,817.56 -1,124.94 10-17-11 10-24-11 850 Market vectors Gold Miners 48,995.62 46,877.62 -2,118.00 08-17-11 10-27-11 2,000 Avon Products Inc. 43,706+20 37,519.67 -6,186.53 08-18-11 10-27-11 350 Avon Products Inc. 7,347.87 6,565.94 -781.93 09-28-11 10-27-11 150 Avon Products Inc. 3,014,00 2,813.98 -200.02 10-10-11 11-01-11 650.0000 iShares Barclays 20+Year 75,685.68 76,935.05 1,249.37 T-Bond Fund 10-11-11 11-01-11 350,0000 iShares Barclays 20+Year 40,711�79 41,426.57 714.78 T-Bond Fund 09-27-11 11-01-11 1,600.0000 iShares Barclays 7-10 Year 167,128.00 166,361.44 -766.56 T-Bond Fund 10-20-11 11-07-11 725 Schlumberger Limited 49,666.42 55,045.58 5,379.16 07-19-11 11-07-11 1,350 Paychex,Inc+ 40,147.52 39,203.38 -944.14 10-14-11 11-09-11 1,850 Adobe Systems hic. 49,603.68 50,072.80 469.12 10-12-11 11-15-11 2,500 Financial Select Sector SPDR 32,054.75 32,499.37 444.62 Fund 10-12-11 11-21-11 1,850 Best Buy Co.Inc. 48,747.SO 48,931.55 184�05 10-28-11 11-23-11 3,909.3000 Northern Institutional Equity 50,000+00 45,292.82 4,707.18 Index 11-09-11 11-23-11 6,122.4400 Northent Institutional Equity 75,000+00 70,925.49 4,074.51 Index 11-01-11 11-23-11 11,129.4300 Northern institutional Equity 135,000.00 128,929.03 -6,0X97 Index 10-12-11 11-25-11 1,500 Financial Select Sector SPDR 19,232.85 17,730.52 -1,502.33 Fund 10-12-11 11-30-11 4,750 Financial Select Sector SPDR 60,904.03 59,041.36 -1,862.67 Fund 9 LLONGER INVESTMENTS INCORPORATED A RegisleTed Investmeni AdViSOT Longer Investments Inc. REALIZED GAINS AND LOSSES Fayeffeville Fire Pension and Relief Fund UIA DTD 6-18-86 From 01-01-11 Arough 12-29-11 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 10-18-11 11-30-11 3,000 Financial Select Sector SPDR 37,209.90 37,289.28 79.38 Fund 10-20-11 12-21-11 1,500 Nucor Corporntion 53,108.70 58,801.41 5,692.71 TOTAL GAINS 351,022.59 121,671.04 TOTAL LOSSES -314,665.16 -7,818.64 14,283,335.30 14,433,545.13 36,357.43 113,852.40 TOTAL REALIZED GAIN/LOSS 150,209.83 NO CAPITAL GAINS DISTRIBUTIONS 10 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. INCOME AND EXPENSES FayeUeville Fire Pension and Relief Fund UIA DTD 6-18-86 From 01-01-11 Yhrough 12-29-11 Security Ex-Date Pay-Date Amount Common Stock AT&T 01-06-11 02-01-11 1,569.50 04-06-11 05-02-11 1,150.25 07-06-11 08-01-11 1,150.25 10-05-11 11-01-11 735.30 4,605.30 Abbott Laboratories 04-13-11 05-16-11 756.00 07-13-11 08-15-11 756.00 10-12-11 11-15-11 756.00 2,268.00 Agnico-Eagle Mines Ltd 08-30-11 09-15-11 160.00 Alexander&Baldwin,Inc. 02-08-11 03-03-11 574.88 Allergan Inc. 05-18-11 06-10-11 50.00 American Electric Power Co.,Inc, 02-08-11 03-10-11 1,495.00 05-06-11 06-10-11 920.00 08-08-11 09-09-11 920.00 11-08-11 12-09-11 940.00 4,275.00 Applied Materials Inc. 05-27-11 06-22-11 244.00 08-29-11 09-21-11 320.00 564.00 Archer-Daniels-Midland Co. 08-16-11 09-08-11 264.00 11-15-11 12-08-11 288.75 552.75 BCE,Inc. 03-11-11 04-15-11 1,174.07 06-13-11 07-15-11 1,240.49 LLONGER INVESTMENTS INCORPORATED ZA Registered h7vestineirl Advisor Longer Investments Inc. INCOME AND EXPENSES Fayetteville Fire Pension an d Relief Fund UIA D TD 6-18-86 From 01-01-11 nrough 12-29-11 Security Ex-Datc Pay-Date Amount 09-13-11 10-15-11 1,169.32 12-13-11 01-15-12 1,173.94 4,757.82 Bristol-Myers Squibb Company 01-05-11 02-01-11 693.00 Chevron Corp. 02-14-11 03-10-11 720.00 05-17-11 06-10-11 604.50 08-17-11 09-12-11 604.50 11-16-11 12-12-11 749.25 2,678.25 Cisco Systems,Inc. 07-05-11 07-27-11 284.10 10-04-11 10-26-11 180.00 464.10 Coca-Cola 03-11-11 04-01-11 517.00 06-13-11 07-01-11 517.00 09-13-11 10-01-11 517.00 11-29-11 12-15-11 517.00 2,068.00 ConAgra Foods,Inc. 07-27-11 09-01-11 460.00 ConocoPhillips 02-17-11 03-01-11 660.00 05-19-11 06-01-11 528.00 07-21-11 09-01-11 528.00 10-13-11 12-01-11 792.00 2,508.00 Danaher Corp. 03-23-11 04-29-11 23.00 06-22-11 07-29-11 23.00 46.00 Devon Energy Corp. 03-11-11 03-31-11 124.00 2 LONGER INVESTMENTS INCORPORATED A Registered Inve5iment AdV15or