HomeMy WebLinkAbout2011-12-14 - Agendas - Final Lioneld Jordan Chairman Pete Reagan Position 2 Retired
Sondra E.Smith Secretary Dennis Mullens Position 3 Retired
Marion Doss Position I Retired PV1 Ron Wood Position 4 Retired
Faye . ile
ARKANSAS
Special Firemen's Pension and Relief Fund
Board of Trustees Meeting Agenda
December 14, 2011
A special meeting of the Fayetteville Firemen's Pension and Relief Fund Board of
Trustees will be held at 9:30 AM on December 14, 2011 in Room 219 of the City
Administration Building.
New Business:
Review Investment Management Agreement and Investment Policy Statement—
Garrison Financial
041 , 11
GARRISON
F I N A N C I A L
INVESTMENT MANAGEMENT AGREEMENT
City of Fayetteville Firemen's Pension and Relief Fund
GARRISON FINANCIAL,LLC
605 West Dickson Street,Suite 201
Fayetteville,Arkansas 72701
(479)587-1045 Telephone
(888)442-7637 Toll Free
(479)587-1257 Facsimile
www.garrisonfinancial.com
INVESTMENT MANAGEMENT AGREEMENT
BETWEEN
CITY OF FAYETTEVILLE FIREMEN'S PENSION AND RELIEF FUND
AND
GARRISON FINANCIAL
This Investment Management Agreement between City of Fayetteville Firemen's Pension and Relief Fund (the
"Client")and Garrison Asset Management,LLC(the "Investment Advisor") is effective as of the I st day of January,
2012.
WHEREAS, the Client is desirous of appointing the Investment Advisor as investment manager with respect to the
investment of certain assets of the Client;and
WHEREAS, the Investment Advisor is willing to accept the duties and the responsibilities of an investment
manager set forth herein with respect to such assets;
NOW,THEREFORE,in consideration of the premises and mutual considerations provided in this Agreement, and
intending to be legally bound,the Client and the Investment Advisor agree as follows:
1. Appointmen . The Investment Advisor is hereby appointed to act as an investment manager with
respect to the assets of the Client specified in Schedule A attached hereto and the proceeds of the investments
thereof and accretions and addition thereto (collectively, the "Assets"), and the Investment Advisor will furnish
continuously an investment program with respect to the Assets. The cash, securities, and other investments making
up the Assets are sometimes referred to collectively herein as the "Account." The Client may add additional Assets
to the Account.
The Client may remove any of the Assets from the Account at any time. Upon removal of Assets, the Investment
Advisor shall have no further obligation to provide the investment management services contemplated by this
Agreement with respect to such Assets.
The Client hereby instructs the Investment Advisor to have all of the Assets held by Charles Schwab & Company,
Inc. (Custodian), for the investment accounts of City of Fayetteville Firemen's Pension and Relief Fund.
Notwithstanding any provision of this Agreement, the Investment Advisor shall not be liable for any error,mistake,
or unlawful act committed by the Custodian or for any loss suffered by the Client as a result of the custodianship of
any of the Assets by a Bank or any other person,except if and only to the extent that any such error,mistake,act,or
loss is a direct result and proximate result of misfeasance, bad faith, or gross negligence on the part of the
Investment Advisor in the performance of its obligations and duties under this Agreement, and the Client shall
otherwise look only to such Custodian for legal or equitable relief in connection therewith.
2. Fees. The Client will pay the Investment Advisor, as compensation for its services under this
Agreement, fees determined in accordance with Schedule B, which is attached to this Agreement. The Client may
elect to have the fees directly deducted from the account. The Client can indicate billing preference on the custodial
application. Please be advised that it is the responsibility of the client to verify the accuracy of each billing. The
custodian will not determine whether the fee is properly calculated. In the event fees are deducted directly from the
INVESTMENT MANAGEMENT AGREEMENT
Page 2 of 9 GARRisoN
I INA N C I At.
Initial
client account, the custodian will be furnished with the dollar amount of the fee and the specific account where the
deduction will be made.
3. Authority of the Investment Advisor. Subject to the provisions of Section 5 of this Agreement, the
Investment Advisor shall have the discretionary authority to manage and control the Assets, including the power to
acquire and dispose of investments of the assets. Except as the Client may otherwise from time to time specify in
writing to the Investment Advisor,the Investment Advisor shall not be required,when exercising its authority under
this Section 3,to consult with or obtain the consent of the Client.
4. Limitation of Liability of the Investment Advisor. The Investment Advisor shall not be liable for
any error of judgment or mistake of law or for any loss suffered by the Client in connection with the matters to
which this Agreement relates except a loss resulting from willful misfeasance,bad faith, or gross negligence on the
part of the Investment Advisor in the performance of its obligations and duties under this Agreement. The
Investment Advisor does not guarantee the future performance of the Client's account or any specific level of
performance, the success or accuracy of any investment decision/determination or strategy that the Investment
Advisor may use, or the success of Investment Advisor's overall management of Client's account. The Client
understands that investment decisions made for the Client's account are subject to various market, currency,
economic, political and business risks. The Client understands that at any given point in time the value of an
investment may be worth more or less than the original purchase price. Except as may otherwise be provided by
law, the Investment Advisor will not be liable to the Client for(a) any loss that Client may suffer by reason of any
investment decision made or other action taken or omitted in good faith by the Investment Advisor with that degree
of care, skill, prudence, and diligence under the circumstances that a prudent person acting in a fiduciary capacity
would use,(b)any loss arising from the Investment Advisor's adherence to the Client's instructions,or(c)any act or
failure to act by a custodian, any broker or dealer to which the Investment Advisor directs transactions for the
Client's account,or by any other third party. Notwithstanding the limitations listed in Section 4,the client is not
waiving any rights under the federal securities laws.
5. Investment Limitations and Guidelines. The Investment Advisor shall manage the Assets in
accordance with the investment objectives,policies, and restrictions set out from time to time in Schedule C,which
is attached to this Agreement. The Client may, from time to time, revise, supplement, or otherwise modify the
guidelines set out in Schedule C by specifying such revision,supplement,or amendment in writing to the Investment
Advisor;provided,however,that no such revision,supplement,or modification shall be effective until written notice
thereof is received by the Investment Advisor.
6. Brokerage. (a) The Investment Advisor may place orders both as to sales and purchases of
investments of the Assets through any broker or dealer it chooses. In selecting a broker or dealer for any transaction
or series of transactions,the Investment Advisor may consider a number of factors including,for example,net price,
reputation,financial strength and stability,efficiency of the Investment Advisor's execution,block trading and block
positioning capabilities, willingness to execute related or unrelated difficult transactions, and other matters
ordinarily involved in the receipt of brokerage services generally. The Investment Advisor shall not be deemed to
have acted unlawfully or to have breached any duty created by this Agreement solely by reason of its having caused
the Client to pay a broker or dealer that provides brokerage or research services to the Investment Advisor an
amount of commission for effecting a portfolio transaction in excess of the amount of commission another broker or
dealer would have charged for effecting a portfolio transaction, if the Investment Advisor determines reasonably in
good faith that the amount of such commission is reasonable in relation to the value of the brokerage or research
services provided by such executing broker or dealer viewed in terms of a particular transaction or the Investment
Advisor's overall responsibilities to the Client or its other discretionary client accounts.
(b) The Client agrees that the Investment Advisor may aggregate sale and purchase orders of securities
held in the Account with similar orders being made simultaneously for other accounts managed by the Investment
Advisor or for accounts of the affiliates of the Investment Advisor if, in the Investment Advisor's judgement, such
aggregation shall result in an overall economic benefit to the Account based on an evaluation that the Account is
INVESTMENT MANAGEMENT AGREEMENT owl
Page 3 of 9 GARRisoN
I INA N C I At.
Initial
benefited by relatively better purchase or sale prices, lower commission expenses, and beneficial timing of
transactions,or a combination of such factors.
(c) The Investment Advisor will allocate aggregated transactions(block trades) in a manner that is fair and
equitable to each client of the Investment Advisor. An internal allocation report will detail the list of participating
accounts and will show the allocation between each account. Orders that are partially filled will be allocated to each
client account in a computer generated, random fashion that is fair and equitable as determined by the Investment
Advisor's Block Trade Allocation Policy.
(d) The Investment Advisor will not at any time have custody of, or access to, Client Assets. The
Investment Advisor may direct that distributions be made to the Client or to other accounts maintained by the Client.
7. Other Activities of the Investment Advisor. In addition to the investment management services to be
performed by it under this Agreement, the Investment Advisor or any of its affiliates may engage in any other
business and may render investment and advisory services to any other person, even if such other person may have
investment policies similar to those required to be followed by the Investment Advisor with respect to the Assets.
The Investment Advisor may, at any time,buy or sell securities of the same kind or class that are purchased or sold
with respect to the Account.
8. Reports. The Investment Advisor agrees to furnish the Client with quarterly statements of the
Account, in a format reasonably acceptable to the Client and the Investment Advisor (including e-mail and other
electronic means), and such other reports and information as the Investment Advisor customarily makes available to
other clients. Clients will also receive periodic reports directly from their custodian. Reports sent electronically by
the Advisor are deemed delivered upon successful transmission by the Advisor. Client is required to notify Advisor
immediately if they do not receive a quarterly report.
9. Proxy Voting. Unless otherwise requested in writing by the Client, the Investment Advisor shall not
take any action with respect to the voting of proxies solicited by any person with respect to any investment of the
Assets. The Investment Advisor will advise the Client on the issues presented in such proxies if so requested by the
Client.
10. Block Tradim. Block trades are allocated in a fair and impartial manner. Partially executed block
trades are allocated based on a randomly generated computer list. Company and personal accounts included in
block trades are excluded for the purpose of allocation in the event of a partial fill. In the event the block trade is
executed at varying prices,an average price will be calculated and each account will receive the average price.
11. Termination. The Investment Advisor may terminate this Agreement on thirty (30) days notice to
the Client. The Client may terminate the Investment Advisor's appointment as an investment manager with respect
to all or part of the assets immediately upon delivery of notice of termination to the Investment Advisor as provided
in Section I above.
12. No Assi2nment. Neither the Investment Advisor nor the Client may assign this Agreement or
delegate its responsibilities hereunder without the written consent of the other party.
13. Communications. Any notice, instruction, request, consent, demand, or other communication
required or contemplated by this Agreement to be in writing shall be given or made or communicated in person to,
or by United States first class mail,postage prepaid,addressed as follows:
If to the Client: City of Fayetteville Firemen's Pension and Relief Fund
Attn:
113 W. Mountain
Fayetteville,Arkansas 72701
INVESTMENT MANAGEMENT AGREEMENT
Page 4 of 9 GARRisoN
I INA N C I At.
Initial
If to the Investment Advisor: Garrison Financial
605 West Dickson Street, Suite 201
Fayetteville,Arkansas 72701
provided that each party shall, by written notice, promptly inform the other party of any change of address.
Communication may also be conducted by e-mail or other electronic means. All written,but non-electronic,notices
to either party shall be effective upon receipt. All electronic notices to the Advisor shall be effective upon receipt
and all electronic notices to the Client shall be effective upon successful transmission by the Advisor.
The Client shall notify the Investment Advisor, in writing, of the people who are authorized to act on behalf of the
Client under this Agreement.
14. Modification of Agreement. This Agreement may be amended only by a written instrument signed
by the Client and the Investment Advisor; provide , however, that Schedule C may be amended, supplemented, or
otherwise modified at any time or from time to time by this Client by written notice to the Investment Advisor.
15. Governing Laws. This Agreement shall be construed in accordance with the laws of The State of
Arkansas(other than conflicts of law rules),except to the extent superseded by federal law.
IN WITNESS WHEREOF,the Client and the Investment Advisor have executed this Agreement as of the day and
year written above.
Mayor Lioneld Jordan Sondra Smith,City Clerk
Marion Doss,Board Member Dennis Mullens,Board Member
Pete Reagan,Board Member Ron Wood,Board Member
INVESTMENT MANAGEMENT AGREEMENT
Page 5 of 9 GARRisoN
I INA N C I At.
Initial
ACKNOWLEDGE OF RECEIPT OF FORM ADV PART 11 & CLIENT CUSTODY NOTIFICATION
REQUIREMENTS. Client hereby acknowledges receipt of ADV Part 11 as of the day and year written above. The
Investment Advisory Act of 1940 requires that information in this contract be delivered to the Client at least 48
hours prior to contract initiation or that the Client be permitted to terminate the contract within five business days
without penalty.
Rule 206(4)-2 (the "Rule") of the Investment Advisors Act of 1940, as amended , requires us to notify you that by
engaging us to manage your assets under this contract that you have also opened a custodial account with the
custodian of your choosing for the safekeeping of your assets. We are required under the Rule to have a reasonable
belief, after"due inquiry",that your chosen custodian will send client statements directly to you. After due inquiry,
we have determined that the custodian does, in fact, send client statements directly to you because they also send a
copy of those statements to us. YOU ARE URGED TO COMPARE THE CLIENT STATEMENTS YOU
RECEIVE FROM YOUR CHOSEN CUSTODIAN TO THE CLIENT STATEMENTS YOU RECEIVE
FROM US AND NOTIFY US IMMEDIATELY OF ANY DISCREPANCIES.
Mayor Lioneld Jordan Sondra Smith,City Clerk
Marion Doss,Board Member Dennis Mullens,Board Member
Pete Reagan,Board Member Ron Wood,Board Member
GARRISON ASSET MANAGEMENT,LLC Name and Address of Safekeepint!Institution:
Charles Schwab&Company,Inc.
101 Montgomery Street
By: San Francisco,CA 94104
INVESTMENT MANAGEMENT AGREEMENT
Page 6 of 9 GARRisoN
I INA N C I At.
Initial
SCHEDULE A
TO THE
INVESTMENT MANAGEMENT AGREEMENT
BETWEEN
CITY OF FAYETTEVILLE FIREMEN'S PENSION AND RELIEF FUND
AND
GARRISON ASSET MANAGEMENT,LLC
Assets of the Account To be determined following transfer of accounts.
lNVESTMENT MANAGEMENT AGREEMENT
Page 7 of 9 GARRisoN
I INA N C I At.
Initial
SCHEDULEB
TO THE
INVESTMENT MANAGEMENT AGREEMENT
BETWEEN
CITY OF FAYETTEVILLE FIREMEN'S PENSION AND RELIEF FUND
AND
GARRISON ASSET MANAGEMENT,LLC
In consideration of the services performed by the Investment Advisor under this agreement,the Client agrees to pay
the Investment Advisor a management fee determined as follows:
0.50%(50bps)of the market value of assets under management
Asset management fees are calculated based on the average market value over the billing cycle. Fees are calculated
quarterly on an annual basis according to the schedule above and are paid quarterly in arrears. Fees for partial
billing periods are prorated based on the actual number of days assets are under management.
Client understands that Assets of the Account invested in shares of mutual funds or other investment companies
("Funds") will be included in calculating the value of the Assets for purposes of computing Investment Advisor's
fees and the same Assets will also be subject to additional advisory and other fees and expenses, as set forth in the
prospectuses of those funds,paid by the funds but ultimately borne by the Client.
INVESTMENT MANAGEMENT AGREEMENT owl
Page 8 of 9 GARRisoN
I INA N C I At.
Initial
SCHEDULE C
TO THE
INVESTMENT MANAGEMENT AGREEMENT
BETWEEN
CITY OF FAYETTEVILLE FIREMEN'S PENSION AND RELIEF FUND
AND
GARRISON ASSET MANAGEMENT,LLC
Investment Policies and Guidelines. See Investment Policy Statement.
INVESTMENT MANAGEMENT AGREEMENT
Page 9 of 9 GARRisoN
I INA N C I At.
Initial
001�1,
GARRISON
F I N A N C I A L
Investment Policy Statement
City of Fayetteville Firemen's Pension and Relief Fund
January 1, 2012
Garrison Financial
605 W. Dickson Street, Suite 201
Fayetteville, Arkansas 72701
ON i
GARRISON
INVESTMENT POLICY SUMMARY
City of Fayetteville Firemen's Pension and Relief Fund
January 1, 2012
Type of Assets Pension Fund
Custodian Charles Schwab & Company
Tax ID
Current Assets Approximately $4,900,000
Investment Time Horizon Greater than 5 years
Liquidity Cash & Equivalent balance will remain adequate to support short-term
needs as instructed by the account holder.
Risk Tolerance Moderately Conservative
Return Objective Growth and Income
Asset Allocation percent fixed income and percent equity with a
maximum variance of ___percent. Cash holdings will be
adequate to meet short-term liquidity needs.
Fixed Income All fixed income securities must have a rating of investment grade
Quality Constraints by Moodys and S&P.
Representative Benchmarks Fixed Income Barclays Intermediate Govt./Corp.
Equity S&P 500
The Trustees of the City of Fayetteville Firemen's Pension and Relief Fund investment portfolio
("Portfolio") are charged with the responsibility of investing the assets of the Portfolio in accordance with
A.C.A §24-11-216, §24-2-610 — §24-2-619, and §24-10-402(a)(2)(E), all of which are incorporated into
this Investment Policy Statement by reference and included as an attachment hereto.
K:\Fire Pension\Agendas\Agendas 2011\Garrison Investment Policy Statement.doc Page 2 of 8
12/14/118:53 AM
ON i
GARRISON
INTRODUCTION
The purpose of this Investment Policy Statement (IPS) is to establish a clear understanding between City
of Fayetteville Firemen's Pension and Relief Fund ("Investor") and Garrison Financial ("Advisor") as to
the investment goals and objectives and management policies applicable to the City of Fayetteville
Firemen's Pension and Relief Fund investment portfolio ("Portfolio"). This Investment Policy Statement
will:
>- establish reasonable expectations, objectives and guidelines in the investment of the Portfolio's
assets.
A, create the framework for a well-diversified asset mix that can be expected to generate acceptable
long-term returns at a level of risk suitable to the Investor, including:
describing an appropriate risk posture for the investment of the Investor's Portfolio;
specifying the target asset allocation policy;
establishing investment guidelines regarding permissible securities and diversification of
assets;
specifying the criteria for evaluating the performance of the Portfolio's assets
>- define the responsibilities of the Investor and the Advisor
encourage effective communication between the Advisor and the Investor
This IPS is not a contract. This investment policy has not been reviewed by any legal counsel and the
Advisor and Investor use it at their own discretion. This IPS is intended to be a summary of the
procedures that provide guidance for the Investor and the Advisor. The investment policies described in
this IPS should be dynamic. These policies should reflect the Investor's current status and philosophy
regarding the investment of the Portfolio. These policies will be reviewed and revised periodically to
ensure they adequately reflect any changes related to the Portfolio, to the Investor or the capital markets.
It is understood that there can be no guarantee about the attainment of the goals or investment objectives
outlined herein.
OBJECTIVES
The investment goals for the portfolio shall be to achieve the maximum total return while seeking to
minimize total risk, with specific attention to capital preservation, capital appreciation and inflation
protection. The primary return objective of the portfolio is to provide growth of the assets over the
investment time horizon. Garrison Financial assumes the fiduciary responsibility of investment portfolio
management and seeks to establish and maintain a portfolio that meets these objectives.
Investments will be made for the sole interest and exclusive purpose of providing benefits to the account
beneficiary. These assets will be invested with the prudent care, expertise, and diligence consistent with
the return objective and risk tolerance of the portfolio.
K:\Fire Pension\Agendas\Agendas 2011\Garrison Investment Policy Statement.doc Page 3 of 8
12/14/118:53 AM
ON i
GARRISON
TIME HORIZON
The investment guidelines are based upon an investment horizon of more than five years, so that interim
fluctuations should be viewed with appropriate perspective. Capital values do fluctuate over shorter
periods and the Investor should recognize that the possibility of capital loss does exist. However,
historical asset class return data suggest that the risk or principal loss over a holding period of at least
three to five years can be minimized with the long-term time horizon employed under this Investment
Policy Statement.
RISK TOLERANCE
Investment theory and historical capital market return data suggest that, over long periods of time, there is
a relationship between the level or risk assumed and the level of return that can be expected in an
investment program. In general, higher risk(e.g. volatility of return) is associated with higher return.
Given this relationship between risk and return, a fundamental step in determining the investment policy
for the Portfolio is the detennination of an appropriate risk tolerance. There are two primary factors that
affect the Investor's risk tolerance:
Financial ability to accept risk within the investment program, and ;
Willingness to accept return volatility.
Taking these two factors into account, the Investor rates his or her own risk tolerance as moderately
conservative. The Investor recognizes that higher returns involve some volatility and has indicated a
willingness to tolerate fluctuations in this portfolio.
ASSET ALLOCATION
Academic research suggests that the decision to allocate total assets among various asset classes will far
outweigh security selection and other decisions that import portfolio performance. After reviewing the
long-term performance and risk characteristics of various asset classes and balancing the risk and rewards
of market behavior, an asset allocation policy of ercent fixed income and - percent
equity with a maximum variance of percent, is selected to achieve the objectives of the Investor's
Portfolios.
No guarantees can be given about future performance. This Investment Policy Statement shall not be
construed as offering such a guarantee, and at any point in time an investment may be worth less than the
original purchase price.
K:\Fire Pension\Agendas\Agendas 2011\Garrison Investment Policy Statement.doc Page 4 of 8
12/14/118:53 AM
ON i
GARRISON
Updated Allocations
From time to time, it may be desirable to amend the basic allocation policy or calculations. When such
changes are made, updates will be attached to this Investment Policy Statement as an Appendix and will
be considered part of this Investment Policy Statement.
LIQUIDITY and MARKETABILITY
The Investor will provide the Advisor instruction as to the cash balance needed to provide for short-term
needs. Additional cash reserves may be held as dictated for investment or operational reasons.
All assets held in the portfolio will be readily marketable. Securities will be listed on a principal
securities exchange or traded in the over the counter(OTC)market.
DIVERSIFICATION
Investment of the Investor's funds shall be limited to individual marketable securities or packaged
products (for example, mutual funds or unit investment trust) in the following categories:
Permitted Asset Classes
Fixed Income:
Cash and cash equivalents
Domestic Bonds
Mortgages
Preferred Stock
Equities:
U.S. Equities
Non-U.S. Equities
Convertible Preferred Stock
Permitted Security Types
Individual Stocks
Individual Bonds
Individual Preferred Stocks
Mutual Funds— Stock, Preferred Stock, Bond and Money Market Funds
Closed-end funds
Unit Investment Trusts
Covered Call Options
Investments in Limited Partnerships
Bank certificates of deposit
American Depository Receipts
K:\Fire Pension\Agendas\Agendas 2011\Garrison Investment Policy Statement.doc Page 5 of 8
12/14/118:53 AM
Am i
GARRISON
Prohibited Asset Classes and/or Security Types
Precious metals
Venture Capital
Short sales
Purchases of Letter Stock, Private Placements, or direct payments.
Commodities Transactions
Puts, calls, straddles, or other option strategies, except as permitted
above.
Other Investment Considerations
Equity holdings in any one company should not exceed more than five (5%) percent of the market value
of the portfolio. The industry sector weightings should not generally exceed twenty-five (25%) percent of
the market value of the portfolio. Variance from policy guidelines may occur when (i) the portfolio is less
than $200,000, (ii) the portfolio is part of a consolidated portfolio, which meets guidelines, or (iii) the
Investor has specifically requested or acknowledged variance.
CLIENT COMMUNICATION AND REVIEW PROCEDURES
Reports
Garrison Financial shall provide the Investor with a report each quarter that provides detailed information
concerning portfolio holdings, transactions, capital gains information and a comprehensive performance
report. Additional information will be included as needed. The Investor will be provided a monthly
statement from the custodian.
Meetings and Communication Between Investor and Advisor
Garrison Financial shall meet with the client as necessary to review and explain the Portfolio's investment
results and any related issues. Garrison Financial shall also be available for telephone communication,
via e-mail and over the internet at www.gaffisonassetmanagement.com as needed. Any material event
that affects the ownership of Garrison Financial or the management of the Portfolio must be reported
immediately to the Investor.
DUTIES AND RESPONSIBILITIES
The Advisor
Garrison Financial is expected to manage the portfolio in a manner consistent with this Investment Policy
Statement and in accordance with State and Federal law and the Uniform Prudent Investor Act. Garrison
Financial is an SEC Registered Investment Advisor under the Investment Advisers Act of 1940, as
amended and shall act as the investment advisor and fiduciary to the Investor until the Investor decides
otherwise.
K:\Fire Pension\Agendas\Agendas 2011\Garrison Investment Policy Statement.doc Page 6 of 8
12/14/118:53 AM
ON i
GARRISON
Garrison Financial shall be responsible for:
1. Designing, recommending and implementing an appropriate asset allocation plan consistent with
the investment objectives, time horizon, guidelines and constraints outlined in this statement.
2. Recommending an appropriate custodian to safeguard the Investor's assets.
3. Advising the Investor about the selection of and the allocation of asset categories.
4. Identifying specific assets within each asset category.
5. Monitoring the performance of all selected assets.
6. Recommending changes to any of the above.
7. Periodically reviewing the suitability of the investments for the Investor, and being available to
meet with the Investor as needed at the Investor's request.
8. Preparing and presenting appropriate reports.
Garrison Asset Management will not take title to, nor have custody of, any of the Investor's assets.
The Investor
The Investor shall be responsible for directing Garrison Financial to make changes in the investment
policy and to oversee and to approve recommendations with regards to policy, guidelines and objectives.
The Investor will provide Garrison Financial with all relevant information on the financial conditions and
risk tolerances and shall notify the Advisor promptly of any changes to this information.
�=M
Mayor Lioneld Jordan Sondra Smith, City Clerk
Marion Doss, Board Member Dennis Mullins, Board Member
Peter Reagan, Board Member Ron Wood, Board Member
Garrison Financial Representative Date
K:\Fire Pension\Agendas\Agendas 2011\Garrison Investment Policy Statement.doc Page 7 of 8
12/14/118:53 AM
ON i
GARRISON
INVESTING PRIMARILY IN MUTUAL FUNDS & ETF'S
Based on the desire of the Investor, and after having carefully considered the Investor's
goals, objectives, risk tolerances and time horizon, the Investor has requested, and the
Advisor is permitted to, invest an amount equal to the entire assets of the Portfolio in
mutual fund shares or ETF's (in addition to the other Permitted Asset Classes & Security
Types) consistent with this Investment Policy Statement. Investor understands that
Portfolio assets invested in shares of mutual funds or other investment companies ("Funds")
will be included in calculating the value of the Portfolio for purposes of computing
Advisor's fees and the same assets will also be subject to additional advisory and other fees
and expenses, as set forth in the prospectuses of those funds, paid by the funds but
ultimately borne by the Investor.
Mayor Lioneld Jordan Sondra Smith, City Clerk
Marion Doss, Board Member Dennis Mullins, Board Member
Peter Reagan, Board Member Ron Wood, Board Member
K:\Fire Pension\Agendas\Agendas 2011\Garrison Investment Policy Statement.doc Page8 of8
12/14/118:53 AM
Fayetteville Fireman's Pension and Relief Fund
Meeting Date IoA Ll
Adjourn Time
Attendees:
Subject: Subject:
A
Motion By: q a�, Motion By:
Seconded: Seconded:
Mayor Jordan Mayor Jordan
Marion Doss Marion Doss
Pete Reagan Pete Reagan
Dennis Mullens Dennis Mullens
Ronnie Wood Ronnie Wood
Sondra Smith - Sondra Smith
Subject: Subject:
Motion By: Motion By:
Seconded: Seconded:
Mayor Jordan Mayor Jordan
Marion Doss Marion Doss
Pete Reagan Pete Reagan
Dennis Mullens Dennis Mullens
Ronnie Wood Ronnie Wood
Sondra Smith Sondra Smith
V 0
Fayetteville Fireman's Pension and Relief Fund
Meeting Date A7? -
Adjourn Time
Attendees:
I Demki ,5 M wQty�,a, Pe4t- kpaeftim Ota,-t, MAd&& MO/un% Um
?CAY\ to- Wf)40 I , (J 00^&Vp� 4 Yn*,2tK, , r,a hifen 0,41 LI
varbye.
Subject: Subject:
Motion By: Motion By: Wo6d
Seconded : Seconded:
Mayor Jordan Mayor Jordan
Marion Doss Marion Doss
Pete Reagan Pete Reagan
Dennis Mullens Dennis Mullens
Ronnie Wood Ronnie Wood vo��
Sondra Smith Sondra Smith w000�
6ppro ve�
JIA4 ,f4k rW� PC) I CT
Subject: Subject: Faed I-Ileome
00t a
Motion By: Ate. IC2aQ anA Motion By:
V
Seconded: Dcnrl ?s Seconded: L�SJI
Mayor Jordan VOOO� Mayor Jordan LOO/
Marion Doss Marion Doss woo�
Pete Reagan Pete Reagan
Dennis Mullens Dennis Mullens
Ronnie Wood Ronnie Wood
Sondra Smith Sondra Smith