Eighteenth comprehensive annual financial report / Elected Officials' Retirement Plan fy 1999

              ELECTED OFFICIALS’
RETIREMENT PLAN
OF THE
STATE OF ARIZONA
EIGHTEENTH COMPREHENSIVE
ANNUAL FINANCIAL REPORT
—
A PENSION TRUST FUND
OF THE STATE OF ARIZONA
—
FOR THE FISCAL YEAR ENDED
JUNE 30, 1999
ELECTED OFFICIALS’ RETIREMENT PLAN
A PENSION TRUST FUND OF THE STATE OF ARIZONA
EIGHTEENTH COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 1999
This report was prepared by the staff of the EORP
1020 East Missouri Avenue
Phoenix, Arizona 85014
(602) 255-5575
Fax (602) 255-5572
www.psprs.com
STATE OF ARIZONA
ELECTED OFFICIALS’ RETIREMENT PLAN
EIGHTEENTH COMPREHENSIVE ANNUAL FINANCIAL REPORT
CONTENTS
INTRODUCTORY SECTION
Fund Managers' Report …………………………………………………………………………��………. 3
Letter of Transmittal ………………………………………………………………………………………... 4
Certificate of Achievement for Excellence in Financial Reporting ……………………………………. 7
The Retirement Board and Administrative Organization ………………………………………………. 8
Organizational Chart ……………………………………………………………………………………….. 9
Summary of Plan Provisions (See Note 1 in Notes to Financial Statements) …………………......... 16
FINANCIAL SECTION
Independent Auditor's Report …………………………………………………………………………….. 13
Basic Financial Statements
Statements of Plan Net Assets…………………………………………………………………… 14
Statements of Changes in Plan Net Assets....................………………………………………… 15
Notes to Financial Statements……………………………………………………………………… 16
(These Notes are an Integral Part of the Financial Statements)
Required Supplementary Information
Schedule of Funding Progress …………………………………………………………………… 21
Schedule of Employer Contributions………………………………………………………………. 22
Supporting Schedule of Changes in Fund Balance Reserves ………………………………………... 23
Supporting Schedule of Administrative and Investment Expenses ………………………………...… 24
Supporting Schedule of Payments to Consultants ……………………………………………………... 24
Supplemental Schedule of Cash Receipts and Cash Disbursements ………………………..……… 25
INVESTMENT SECTION
Fund Objectives ……………………………………………………………………………………………. 29
Investment Performance Data ……………………………………………………………………………. 30
Supporting Schedule of Commissions Paid to Brokers ……………………………………...………… 34
Summary of Changes in Investment Portfolio …………………………………………………………... 35
Detailed List of Investments Acquired …………………………………………………………………… 36
Detailed List of Sales and Redemption of Investments ……………………………………………… 44
Detailed List of Investments Owned ……………………………………………………………………… 48
ACTUARIAL SECTION
Actuarial Certification Statement …………………………………………………………………………. 59
Actuarial Balance Sheet – All Employers ……………………………………………………………… 60
Summary of Valuation Methods and Assumptions …………………………………���……………… 61
Solvency Test ………………………………………………………………………………………………. 65
Summary of Active Member Data ………………………………………………………………………… 66
Summary of Inactive Member Data ……….……………………………………………………………… 67
Schedule of Retirants and Beneficiaries………………………………………………………………… 67
Schedule of Experience Gain / (Loss)…………………………………………………………………… 68
STATISTICAL SECTION
Schedule of Revenues by Source and Expenses by Type…………………………………………… 71
Schedule of Benefit Expenses by Type ……………………………………………………………....…. 72
Summary of Retired Member and Survivor Data ………………………………………………….....… 73
Summary of Benefit Increases …��…………………………………………………………………..... 74
Participating Employers …………….....................…………………………………………………....…. 76
Summary of Growth of the System ………………………………………………………………….....… 77
INTRODUCTORY SECTION
ELECTED OFFICIALS’ RETIREMENT PLAN
EIGHTEENTH COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 1999
Fund Managers' Report
Letter of Transmittal
Certificate of Achievement for
Excellence in Financial Reporting
The Retirement Board and
Administrative Organization
Organizational Chart
Summary of Plan Provisions
(See Note 1 in Notes to Financial Statements)
Page 2
Page 3
PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM
CORRECTIONS OFFICER RETIREMENT PLAN
ELECTED OFFICIALS’ RETIREMENT PLAN
1020 East Missouri Avenue
Phoenix, Arizona 85014-2613
Jack M. Cross, C.P.A., C.F.A.
Administrator TELEPHONE: (602) 255-5575
Michael H. Ong, J.D.
Assistant Administrator
FAX: (602) 255-5572
The Honorable Jane Dee Hull September 30, 1999
Governor of the State of Arizona
State Capitol
Phoenix, Arizona 85007
Dear Governor Hull:
The Fund Manager of the Public Safety Personnel Retirement System respectfully submits the Eighteenth Annual
Report of the Elected Officials' Retirement Plan for the fiscal year ending June 30, 1999.
We are pleased to report that the Plan is in excellent financial and actuarial condition. In fact, the Plan continues
to be more than 124% funded. Listed below are some of the record-breaking highlights for the fiscal year ending
June 30, 1999.
Total Plan assets increased from $311,329,191 to $359,492,061—an increase of 15.5%. The Fair value of the
total Plan assets was over 39% above cost. Benefits paid to retired Elected Officials and their beneficiaries
increased from $10,963,879 to $11,991,654. Net investment income totaled $53,424,808, which was the second
best year on record. These earnings provided 89% of the total cost of the Plan.
The total rate of return, which includes realized as well as unrealized gains and losses, for the entire fund was
17.52%. The individual rates of return for the stock portfolio and bond portfolio were 23.04% and 2.55%,
respectively. The Plan continues to outperform the market indexes on a short-term and long-term basis. The
net effective yield, which takes into account only realized gains and losses, was 26.15%—by far the best on
record.
Total administrative and investment expenses increased from $79,523 to $82,429. Costs have increased 50%
during the past fourteen years. This increase is well below the rate of inflation (55% during this period) even
though assets managed have increased 563% and the Plan membership has increased over 71%.
We sincerely appreciate the opportunity of serving the State of Arizona, its political subdivisions, and its elected
officials and judges.
Respectfully submitted,
____________________________
Donald L. De Ment, Chairman
___________________________
Carmen Torrie, Member
____________________________
Patrick Cantelme, Member
___________________________
Carol Springer, Member
____________________________
Robert Blendu, Member
Page 4
PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM
CORRECTIONS OFFICER RETIREMENT PLAN
ELECTED OFFICIALS’ RETIREMENT PLAN
1020 East Missouri Avenue
Phoenix, Arizona 85014-2613
Jack M. Cross, C.P.A., C.F.A.
Administrator TELEPHONE: (602) 255-5575
Michael H. Ong, J.D.
Assistant Administrator
FAX: (602) 255-5572
www.psprs.com
September 30, 1999
The Fund Manager
Public Safety Personnel Retirement System
State of Arizona
Phoenix, Arizona
Gentlemen:
There is presented herewith the Eighteenth Annual Report of the operations and financial conditions of the
Elected Officials' Retirement Plan for the fiscal year ended June 30, 1999. Incorporated in this report are the
audited financial statements and other financial data from the June 30, 1999, report of Barrows & Schatza, P.L.C.,
Certified Public Accountants and auditors for the Plan. Also included is the Actuarial Certification Statement and
the Actuarial Balance Sheet from the June 30, 1999, Actuarial Valuation made by the System's Actuary, Gabriel,
Roeder, Smith & Company, Consulting Actuaries.
This report has been organized into five sections: the Introductory Section contains general information regarding
the operations of the Elected Officials' Retirement Plan; the Financial Section contains the financial reports and
schedules of the funds administered by the Elected Officials' Retirement Plan; the Investment Section contains
detailed lists of the investment transactions and portfolios of the Plan, along with investment performance; the
Actuarial Section contains actuarial information regarding the funding of the pension trusts, and the Statistical
Section contains statistical data pertaining to the benefits paid by the Elected Officials' Retirement Plan and
growth of the Plan.
FINANCIAL INFORMATION
The primary responsibility for the integrity and objectivity of the financial statements and related financial data
rests with the management of the Plan. The financial statements were prepared in conformity with generally-accepted
accounting principles appropriate for government-sponsored defined benefit pension plans.
Management believes that all other financial information included in this annual report is consistent with those
financial statements.
It is the Plan's policy to maintain a control-conscious environment through an effective system of accounting
controls. These controls are adequate to provide reasonable assurance that assets are safeguarded against
loss or unauthorized use and to produce the records necessary for the preparation of financial information. There
are limits inherent in all systems of internal control based on the recognition that the costs of such plans should
be related to the benefits to be derived. Management believes the Plan's controls provide this appropriate
balance.
The Plan uses the accrual basis of accounting for both revenues and expenses. Contributions to the Plan are
based on principles of level-cost financing with current service financed as a level percent of payroll on a current
basis and prior service amortized as a level percent of payroll over a rolling twenty (20) year period.
REVENUES
Revenues to the Plan are derived from three sources; member contributions, employer contributions and
investment income. As shown by the Statement of Revenues by Source included with the financial statements
later in this report, the investment earnings during the 1998/1999 fiscal year provided 89% of the total funding
Page 5
of the Plan. Member contributions made up 5% of total revenue and employer contributions made up 6% of the
total revenues. Please refer to the Statistical Section for a ten-year history of revenues and expenses.
ADMINISTRATIVE AND INVESTMENT EXPENSES
The 1998/1999 Administrative and Investment Expenses of the Administrative Office increased slightly to $82,429
compared to $79,523 for the prior year. This is only 50% higher than the total for fiscal year 1984/1985. This is
a compounded annual rate of increase of 2.92% over the last fourteen years. This rate of increase is well below
both the rate of inflation and the rate of growth of the Plan. A dedicated staff and constantly improving internal
expertise has allowed management to keep costs extremely low for the past fourteen years even though inflation,
membership and assets managed have increased substantially during this same period (over 55%, over 71% and
nearly 563%, respectively).
INVESTMENTS
Since the Plan is well funded, the management takes a moderately conservative approach to investing. The Plan
invests primarily in bonds rated A or better and blue chip common stock. A detailed summary of the investment
portfolio and all investment transactions is presented in the Investment Section. At year-end, the investment
portfolio was made up of 11.0% U. S. Government Securities, 11.5% Corporate Bonds, 0.6% Corporate Notes,
1.4% Other Investments, .2% insured Money Market Funds and 75.3% Common Stocks. All investments are held
in trust by the Arizona subsidiary of one of the largest banks in the world.
Even with this relatively conservative investment philosophy, the fixed income portfolio has outperformed the
Lehman Government Corporate Bond Index in seven of the last ten years and the equity portfolio has
outperformed the applicable Index (NYSE until 98/99, then S & P 500) eight of the last ten years. This
extraordinary performance resulted in a net effective yield of 26.15% and a total rate of return of 17.52% for the
1998/1999 fiscal year. Graphs depicting the funds' extraordinary performance since 1987, the year the current
Administrator took over the portfolio management, can be found in the Investment Section.
ECONOMIC OUTLOOK
The economy seems to be leveling off. It is likely the economy will continue its moderate growth. With interest
rates so low, it may be difficult to continue to outperform the System's 9% assumed rate of investment return over
the next couple of years.
ACTUARIAL AND FUNDING INFORMATION
Funding a retirement plan on a sound actuarial reserve basis involves the accumulation of substantial reserves
to guarantee the payment of promised benefits. These reserves are invested and the rate of investment
earnings, over time, is a major factor in determining the employer contribution requirement to meet the calculated
level cost of the Plan.
There is no single all-encompassing test to measure a retirement plan's funding progress and current status. A
traditional measure is the ratio of assets to unfunded accumulated normal costs, often referred to as the "percent
funded." The percent funded for the Plan at June 30, 1999, is 124.8%, which is well ahead of schedule.
The Plan is funded through a member contribution of 7% of gross payroll, an employer contribution set by an
actuarial valuation expressed as a percent of gross payroll and a distribution of the net earnings of the Plan. State
and county employers receive credit for a portion of certain fees collected by the Clerks of the Superior Courts,
Courts of Appeals, and the Supreme Court. Currently, these fees are enough to provide all of the state and
county employer costs. This is expected to continue through fiscal year 1999/2000 when the city employer rate
will be 10.22%.
Page 6
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in
Financial Reporting to the EORP for its comprehensive annual financial report for the fiscal year ended June 30,
1998. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest
standards for preparation of state and local government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and
efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such
comprehensive annual financial report must satisfy both generally accepted accounting principles and applicable
legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current
report continues to conform to the Certificate of Achievement program requirements and we are submitting it to
the Government Finance Officers Association.
SUMMARY
The System's Actuary, Gabriel, Roeder, Smith & Company, summarized the results of the latest Actuarial
Valuation as of June 30, 1999, as follows:
The results of the valuations indicate that Retirement Plan benefit obligations are being funded as incurred.
Current assets are 124.8% of actuarial accrued liabilities. This is an excellent level of accrued funding and
well ahead of schedule. Superior investment returns, over an extended period, have made possible the
excellent actuarial condition of the Retirement Plan, improved benefits for members retiring in the future,
cost-of-living increases to retired members and their beneficiaries.
The Plan has experienced great change during the past fourteen years. The Plan's accrual rate was raised to
4% of pay for each year of credited service. Members can now take normal retirement with twenty years of
credited service regardless of age and they can take a reduced early retirement with five or more years of
credited service with no age limit. The Plan now provides for disability benefits, survivor benefits for spouses and
children, post-retirement increases and health insurance subsidies. Funding has increased to 124.8%. Over just
the past fourteen years, investment income has grown dramatically and total assets of the Plan have more than
tripled. I am proud to have been a part of the Plan's management team and I look forward to the Plan's continued
success in the future.
Respectfully submitted,
Jack M. Cross, C.P.A., C.F.A.
Administrator
Page 7
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Elected Officials' Retirement
Plan, Arizona
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 1998
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
Page 8
STATE OF ARIZONA
ELECTED OFFICIALS’ RETIREMENT PLAN
THE RETIREMENT BOARD AND ADMINISTRATIVE ORGANIZATION
THE FUND MANAGER Term Expires
Donald L. De Ment
Retired City Clerk
City of Tucson
Member January 2000
Carmen Torrie
Retired Sergeant
Department of Public Safety
Member January 2001
Pat Cantelme
Retired Firefighter
City of Phoenix
Member January 2002
Carol Springer
State Treasurer
State of Arizona
Member January 2000
Robert Blendu
Public Member
Member January 2002
PROFESSIONAL ADVISORS
Standard & Poor’s Investment Counsel
Gabriel, Roeder, Smith & Company Consulting Actuaries
Barrows & Schatza, P.L.C. Auditors
Lieberman, Dodge, Sendrow & Gerding, Ltd. Legal Counsel
ADMINISTRATIVE STAFF
Jack M. Cross, C.P.A., C.F.A. Administrator
Michael H. Ong, J.D. Assistant Administrator
Donald B. Mineer Operations Director
William F. Mulholland, C.P.A. Finance Director
Jared A. Smout Administrative Assistant
Lori A. Boyle Office Manager
LaDawn M. Snodgrass Active Member Supervisor
Sheryl D. Saltsman Benefits Supervisor
Annette L. Jorgensen Administrative Assistant
Lisa A. Guerrero Active Member Clerk
Joann L. Lowey Accountant
Kathleen A. Mattoon Office Specialist
Deborah S. Irwin Accounting Clerk
Lilian L. Leung Benefits Clerk
Eric T. Ellsworth Benefits Clerk
1020 East Missouri
Phoenix, Arizona 85014
Telephone (602) 255-5575
Fax (602) 255-5572
www.psprs.com
Page 9
STATE OF ARIZONA
ELECTED OFFICIALS’ RETIREMENT PLAN
ORGANIZATIONAL CHART
JUNE 30, 1999
THE FUND MANAGER
ADMINISTRATOR
(CIO, Portfolio Manager)
INVESTMENT COUNSEL
(Standard & Poor's)
CONSULTING ACTUARIES
(Gabriel, Roeder, Smith & Co.)
AUDITORS
(Barrows & Schatza, P.L.C.)
FINANCE
DIRECTOR
(Cash Manager)
ASSISTANT
ADMINISTRATOR
LEGAL COUNSEL
(Lieberman, Dodge, Sendrow & Gerding, Ltd.)
OPERATIONS
DIRECTOR
ACTIVE
MEMBER
CLERK
OFFICE ACCOUNTANT
MANAGER
BENEFITS
SUPERVISOR
ACTIVE
MEMBER
SUPERVISOR
ADMINISTRATIVE
ASSISTANT
ACCOUNTING
CLERK
OFFICE
SPECIALIST
BENEFITS
CLERK
ADMINISTRATIVE
ASSISTANT
(Investment Analyst)
BENEFITS
CLERK
Page 10
FINANCIAL SECTION
ELECTED OFFICIALS’ RETIREMENT PLAN
EIGHTEENTH COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 1999
Independent Auditor's Report
Statements of Plan Net Assets
Statements of Changes in Plan Net Assets
Notes to Financial Statements
Schedule of Funding Progress
Schedule of Employer Contributions
Supporting Schedule of Changes
In Fund Balance Reserves
Supporting Schedule of
Administrative and Investment Expenses
Supporting Schedule of Payments to Consultants
Supplemental Schedule of
Cash Receipts and Cash Disbursements
Page 12
Page 13
Phoenix, Arizona
INDEPENDENT AUDITOR'S REPORT
FUND MANAGER
STATE OF ARIZONA PUBLIC SAFETY
PERSONNEL RETIREMENT SYSTEM
PHOENIX, ARIZONA
We have audited the accompanying statements of plan net assets of the STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN as of June 30,1999 and 1998, and the related
statements of changes in plan net assets for the years then ended, appearing on pages 14 and 15,
respectively. These financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial status of the STATE OF ARIZONA ELECTED OFFICIALS' RETIREMENT PLAN as of
June 30, 1999 and 1998, and the results of its operations and the changes in plan net assets for the years
then ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole.
The accompanying supplementary information, contained on pages 21 and 22, schedule of funding
progress land schedule of employer contributions, are required disclosures under Governmental
Accounting Standards Board (GASB) statement No. 25 and are not a required part of the basic financial
statements. Also, the accompanying supplementary information, contained on pages 23 to 25, is, not a
required disclosure under Governmental Accounting. Standards Board (GASB) statement No. 25 and is
not a required part of the basic financial statements. The accompanying additional information described
above has been subjected to the auditing procedures applied in our audit of the 1999 financial statements
and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a
whole.
BARROWS & SCHATZA, P.L.C./sig
September 3, 1999
Book Cost See Note 2 Book Cost See Note 2
ASSETS
Cash
Receivables:
Members' Contributions $ 3,297 $ 95,041
Employers' Contributions 395,315 559,288
Interest and Dividends 2,930,924 2,183,474
Total Receivables 3,329,536 2,837,803
Investments at Fair value (Note 2):
U.S. Government Securities $ 36,064,631 39,201,544 $ 39,350,348 43,920,152
Corporate Bonds 40,503,571 40,855,899 35,804,253 39,274,698
Corporate Notes 1,997,807 1,997,807 1,997,205 1,997,205
Corporate Stocks 170,411,543 268,364,567 125,929,882 219,970,996
Other Investments 5,164,233 5,164,233 3,115,400 3,115,400
Money Market Account 578,475 578,475 212,937 212,937
Total Investments $ 254,720,260 356,162,525 $ 206,410,025 308,491,388
Total Plan Assets 359,492,061 311,329,191
Collateral Held in Trust for
Securities on Loan 76,867,543 47,864,208
Liability- Collateral Subject to
Return to Borrower (76,867,543) (47,864,208)
Net Assets Held in Trust
for Pension Benefits: $ 359,492,061 $ 311,329,191
Net Asset Reserves
Refundable Members' Reserve $ 21,505,771 $ 20,703,032
Employers' Reserve 297,504,295 260,864,192
Future Benefit Increase Reserve 40,481,995 29,761,967
Total Net Asset Reserves $ 359,492,061 $ 311,329,191
A schedule of funding progress is presented immediately following the financial footnotes.
The accompanying notes are an integral part of these financial statements.
1999 1998
STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN
STATEMENTS OF PLAN NET ASSETS
AS OF JUNE 30, 1999 AND 1998
Page 14
1999 1998
Additions:
Contributions
Members' Contributions (Notes 1 and 3) $ 2,970,123 $ 3,294,906
Employers' Contributions (Notes 1 and 3) 3,941,018 3,668,144
Total Contributions 6,911,141 6,963,050
Investment Income:
Net Appreciation in Fair Value
of Investments (Note 2) 43,840,033 44,511,244
Interest 6,701,387 7,123,958
Dividends 2,824,107 2,689,395
Securities Lending Activities
Securities Lending Income $ 3,260,900 $ 3,543,950
Borrower rebates (3,135,671) (3,431,157)
Agents Share of Income (43,826) (39,474)
Net Securities Lending Income (Note 2) 81,403 73,319
53,446,930 54,397,916
Less Investment Expense (22,122) (19,556)
Net Investment Income 53,424,808 54,378,360
Amounts Transferred from Other State-
Sponsored Pension Plans--Net 47,862 728,694
Total Additions 60,383,811 62,070,104
Deductions:
Pension and Insurance Benefits (Note 1) 11,991,654 10,963,879
Refunds to Terminated Members (Note 1) 168,980 30,960
Administrative Expenses 60,307 59,967
Total Deductions 12,220,941 11,054,806
Net Increase 48,162,870 51,015,298
Net Assets Held In Trust
for Pension Benefits
Beginning of Year, July 1 311,329,191 260,313,893
Ending of Year, June 30 $ 359,492,061 $ 311,329,191
The accompanying notes are an integral part of these financial statements.
STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN
STATEMENTS OF CHANGES IN PLAN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 1999 AND 1998
Page 15
Page 16
STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 AND 1998
NOTE 1 - PLAN DESCRIPTION
Organization
The Elected Officials' Retirement Plan (EORP) is a cost-sharing multiple-employer public employee retirement plan
established by Title 38, Chapter 5, Article 3 of the Arizona Revised Statutes, to provide benefits for elected officials and judges
of certain state and local governments. The plan is administered by the Fund Manager of the Public Safety Personnel
Retirement System (PSPRS).
The Fund Manager is a five-member board. Three members are appointed by the Governor and two members are appointed
by the state legislature. All members serve a fixed three-year term. The Fund Manager is responsible for the investment of
the plan's assets, setting employer contribution rates in accordance with an actuarial study, adopting a budget, hiring
personnel to administer the plan, setting up records, setting up accounts for each member, paying benefits, and the general
protection and administration of the Plan.
The addition or deletion of eligible groups does not require the approval of the other participating employers. New eligible
groups are approved for participation by the Fund Manager. The EORP is not reported as a component unit of any other
organization.
The Fund Manager of the PSPRS is also responsible for the investment and general administration of two other statewide
retirement plans—the Public Safety Personnel Retirement System and the Corrections Officer Retirement Plan. The
investments and expenses of these plans are held and accounted for separately from those of the EORP. Since none of the
plans have the authority to impose their will on any of the other plans, each plan is reported as its own stand-alone
government.
At June 30, 1999 and 1998, the number of participating local government employer groups was:
1999 1998
Cities 16 15
Counties 15 15
State Agencies 1 1
Total Employers 32 31
All state and county elected officials and judges are members of the Plan except La Paz County elected officials. Any city
in the state of Arizona may elect to have its elected officials' covered by the EORP. At June 30, 1999 and 1998, statewide
EORP membership consisted of:
1999 1998
Retirees and beneficiaries currently
Receiving benefits 547 513
Terminated vested employees 126 109
Current employees
Vested 403 434
Non-vested 306 279
Total Members 1,382 1,335
EORP provides retirement benefits as well as death and disability benefits. Generally, all benefits vest after five years of
credited service. A summary of benefits and Plan provisions follows:
SUMMARY OF BENEFITS
Membership (A.R.S. Section 38-801 and Section 38-804.A)
All elected officials are members of the plan, except that an elected official who is subject to term limits may elect not to
participate in the plan for that specific term of office. An elected official means every elected official of this state, every elected
official of each county of this state, every justice of the supreme court, every judge of the court of appeals, every judge of the
superior court, every full-time superior court commissioner, the administrator of the fund manager if the administrator is a
natural person and each elected official of an incorporated city or town whose employer has executed a proper joinder
agreement for coverage of its elected officials.
Page 17
Credited Service (A.R.S. Section 38-801 [3])
Means the number of whole and fractional years of a member's service as an elected official after the elected official's effective
date of participation for which member and employer contributions are on deposit with the fund, plus credited service as an
elected official transferred to the plan from another retirement system or plan for public employees of this state, plus service
as an elected official before the elected official's effective date of participation which is being funded pursuant to a joinder
agreement or which was redeemed pursuant to Section 38-816.
Average Yearly Salary (A.R.S. Section 38-801 [2])
Means the highest average total base salary over a period of three consecutive years within the last ten completed years of
credited service which was paid to the elected official at the time of death or retirement or at the time he ceases to hold office.
Normal Retirement (No Reduction for Age)
An elected official may retire upon meeting one of the following age and service requirements: (A.R.S. Section 38-805.A)
1. Age sixty-five years, with five or more years of credited service.
2. Age sixty-two years, with ten or more years of credited service.
3. Twenty or more years of credited service regardless of age.
The amount of a normal retirement pension is four percent (4%) of the member's average yearly salary multiplied by the years
of the member's credited service. Maximum is eighty percent (80%) of member's average yearly salary. (A.R.S. Section 38-
808.B [1])
Early Retirement (Reduction for Age) (A.R.S. Section 38-805.B and Section 38-808.B [1])
An elected official who has five or more years of credited service may retire before meeting the age and or service requirement
for normal retirement. The amount of an early retirement pension is computed by determining the amount of accrued normal
retirement pension and then reducing the amount determined by three-twelfths of one percent for each month early retirement
precedes the member's normal retirement age as noted above. The maximum reduction is 30%.
Vested Termination (Deferred Retirement) (A.R.S. Section 38-805.B)
An elected official with five or more years of credited service retains entitlement to deferred pension, upon ceasing to be an
elected official, if the official's accumulated contributions are left on deposit in the retirement plan. The amount of pension
is determined in the same manner as a normal or early pension, whichever is applicable.
Disability Retirement (A.R.S. Section 38-806 and Section 38-808.B [2])
An elected official who becomes incapacitated for the purpose of performing the duties of his office may be retired by the Fund
Manager based on a certification by a board of physicians that the member is mentally or physically incapacitated and
qualifies for a disability retirement. The amount of pension is eighty percent (80%) of member's average yearly salary if the
elected official has ten (10) or more years of credited service or forty percent (40%) of the member's average yearly salary
if the elected official has five (5) but less than ten (10) years of credited service or twenty percent (20%) of the member's
average yearly salary if the elected official has fewer than five (5) years of credited service.
Survivor Pensions (A.R.S. Section 38-807)
Payable to the eligible beneficiary of a retired member or an active or inactive member who dies before retirement. An eligible
beneficiary is a surviving spouse who was married to the retired or active or inactive member for at least two years; or, if there
is no eligible spouse, then to a minor child(ren). A surviving spouse's pension terminates upon death. A surviving child's
pension terminates upon attainment of age 18 years, marriage, adoption or death unless the child is a full-time student under
the age of 23 or the child is under a disability which began before the child attained the age of 23. The amount of a surviving
spouse's pension is three-fourths of the pension being paid the deceased retired elected official or three-fourths of the pension
which the member would have received assuming he had retired under a disability. The amount of a surviving child's pension
is an equal share of the amount of a surviving spouse's pension.
Termination of Membership (A.R.S. Section 38-804.B)
Upon termination of employment, for any reason other than death or retirement, a member shall, within twenty days after filing
an application with the Fund Manager, receive a lump-sum payment, equal to his accumulated contributions, as of the date
of termination, less any benefits paid or any amounts owed to the Plan. A member forfeits all membership rights and credited
service in the Plan upon receipt of refund of contributions. If the member has 5 or more years of credited service upon
termination they shall receive an additional amount according to the schedule below:
5 to 5.9—25% of member contributions deducted from the member’s salary pursuant to ARS 38-810.A
6 to 6.9—40% of member contributions deducted from the member’s salary pursuant to ARS 38-810.A
7 to 7.9���55% of member contributions deducted from the member’s salary pursuant to ARS 38-810.A
Page 18
8 to 8.9—70% of member contributions deducted from the member’s salary pursuant to ARS 38-810.A
9 to 9.9—85% of member contributions deducted from the member’s salary pursuant to ARS 38-810.A
10 or more—100% of member contributions deducted from the member’s salary pursuant to ARS 38-810.A plus interest at
3% after 30 days if left on deposit
Re-Employment as an Elected Official and Repayment Of Contributions (A.R.S. Section 38-804.F)
An elected official who terminates membership in the Plan and is later re-employed as an elected official may restore their
prior service credits, provided they sign a written election within ninety days after re-employment to reimburse the Plan within
one year after the date of their re-employment. The reimbursement will equal the amount previously withdrawn plus interest
at the rate of nine percent from the date of withdrawal to the date of repayment.
Elected Officials' Contributions (A.R.S. Section 38-810.A)
All covered members are required by statute to contribute 7% of their salary to EORP. Employee contributions are made on
a pre-tax basis. If a member leaves covered employment or dies and no benefit is payable, accumulated member
contributions are refunded to the member or designated beneficiary. Benefit and contribution provisions are established by
state law and may be amended only by the State of Arizona Legislature.
Employer Contributions (A.R.S. Section 38-810.C)
For state and county employers, a designated portion of certain fees collected by the Clerks of the Superior Courts, Courts
of Appeals and the Supreme Court plus additional contributions as determined by actuarial valuation to ensure proper funding
for the Plan. (A.R.S. Section 38-810.B) For incorporated city or town employers, an amount sufficient to meet both the
normal cost plus the amount required to amortize the unfunded accrued liability over a rolling twenty (20) year period, said
amount to be determined each year by actuarial valuation and paid as a level per cent of compensation.
Joinder by Incorporated Cities or Towns (A.R.S. Section 38-815)
Effective August 19, 1987, elected officials of an Arizona incorporated city or town may participate in the Plan if the city or
town council enters into a joinder agreement with the Fund Manager on behalf of its elected officials.
Transfer Between State Retirement Systems (A.R.S. Section 38-921 and Section 38-922)
Members of any of the four Arizona state retirement systems or plans who have credited service under another Arizona state
retirement system or plan may transfer or redeem the credited service to their current Arizona state retirement system or plan
by paying or transferring the full actuarial present value of the credited service into their current Arizona retirement system
or plan with approval of the Fund Manager or retirement boards involved. A reduced credited service amount may be
transferred based on the transfer of the actuarial present value of the credited service under the prior Arizona state system
or plan.
Purchase of Prior Active Military Service (A.R.S. Section 38-820)
A member may purchase up to four years of prior active military time that is not on account with any other retirement system.
The member must pay the actuarial present value of the increase of credited service resulting from this purchase.
Health Insurance Premium Subsidy (A.R.S. Section 38-817)
For EORP retirees who have group health and accident insurance coverage provided and administered by the state or another
EORP employer and who had 8 or more years of credited service, the EORP will pay up to $60 per month for part of the
premium for the retiree's individual coverage and up to $85 per month for part of the premium for family health and accident
coverage. Those retired members who had between 5 and 8 years of credited service would receive a proportionate share
of the full subsidy.
State Taxation Of Eorp Benefits (A.R.S. Section 38-811 and Section 43-1022)
Effective tax year commencing January 1, 1989, all EORP retirement benefits in excess of $2500 annually will be subject to
Arizona state tax.
Cola Benefit Increases (A.R.S. 38-818)
Effective July 1 of each year, each retired member or survivor of a retired member may be entitled to a permanent benefit
increase in their base benefit. The maximum amount of the increase is four percent (4%) of the EORP benefit being received
on the preceding June 30 and is contingent upon sufficient excess investment earnings for the fund. To be eligible for the
increase the member or survivor must be age 55 on July 1 of the current year and have been receiving benefits on or before
July 31 of the previous year. A member or survivor is also eligible if they were receiving benefits on or before July 31 of the
two previous years regardless of age.
Page 19
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PLAN ASSET MATTERS
Basis of Accounting
EORP financial statements are prepared using the accrual basis of accounting. Member and employer contributions are
recognized as revenues in the period in which employee services are performed. Benefits due are paid in arrears on the last
working day of each month. Refunds are due and payable by state law within 20 days of receipt of a written application for
a refund. Refunds are recorded when paid. Furniture and equipment purchases, which are not material in amount, are
expensed in the year of purchase. Investment income net of administrative and investment expenses is allocated to each
employer group based on the average relative fund size for each employer group for that year.
The Plan implemented Statement Number 25 of the Governmental Accounting Standards Board for Fiscal Year End 1997.
As such, the Plan reports assets on a Fair Value Basis. Certain cost information is provided to comply with state law.
By state statute, this Plan is required to provide information in the financial statements used to calculate Net Effective Yield.
Net Effective Yield includes only realized gains and losses. The Realized Gain and Losses used in this calculation totaled
$44,479,130 for FYE 1999 and $22,931,594 for FYE 1998.
Investments
EORP investments are reported at Fair Value and at Cost. Fair values are determined as follows. Short-term investments
are reported at Fair Value, which approximates Cost. Equity securities are valued at the last reported sales price. Fixed-income
securities are valued using the last reported sales price or the estimated fair market value as determined by one of
the world's largest and most prominent fixed-income broker/dealers. Investments that do not have an established market are
reported at estimated fair value. Investment income is recognized as earned.
Statutes enacted by the Arizona Legislature authorize the Fund Manager to make investments in accordance with the
"Prudent Man" rule. The Fund Manager is not limited to so-called "Legal Investments for Trustees." In making every
investment, the Fund Manager shall exercise the judgement and care under the circumstances then prevailing which men
of ordinary prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation
but in regard to the permanent disposition of their funds, considering the probable income from their funds as well as the
probable safety of their capital, provided:
1) That not more than seventy per cent of the pension fund shall be invested at any given time in corporate stocks, based
on cost value of such stocks irrespective of capital appreciation.
2) That not more than five per cent of the pension fund shall be invested in securities issued by any one institution, agency
or corporation, other than securities issued as direct obligations of and fully guaranteed by the United States Government.
3) That not more than five per cent of the voting stock of any one corporation shall be owned.
4) That corporate stocks eligible for purchase shall be restricted to stocks which, except for bank stocks and insurance
stocks, are either:
a) Listed or approved on issuance for listing on an exchange registered under the securities exchange act of 1934, as
amended (15 United States Code §§ 78a through 7811)
b) Designated or approved on notice of issuance for designation on the national market system of a national securities
association registered under the securities exchange act of 1934, as amended (15 United States Code §§ 78a
through 7811)
c) Listed or approved on issuance for listing on an exchange registered under the laws of this [Arizona] state or any
other state.
d) Listed or approved on issuance for listing on an exchange of a foreign country with which the United States is
maintaining diplomatic relations at the time of purchase, except that no more than ten per cent of the pension fund
shall be invested in foreign equity securities on these exchanges, based on the cost value of the stocks irrespective
of capital appreciation.
The Plan's investment portfolio is in compliance with state law.
Statement No. 3 of the GASB requires government entities to categorize investments for the purpose of giving an indication
of the level of risk assumed by the entity at year-end. Category 1 includes investments that are insured or registered or for
which securities are held by the Plan or its agent in the name of the Plan. Category 2 includes uninsured and unregistered
investments for which the securities are held by the counterparty, or by its trust department or agent but not in the Plan's
name.
All investments of the Plan (other than those held by broker-dealers under the security loan program and those investments
categorized as "Other Investments") meet the criteria of Category 1. "Other Investments" are not considered securities for
purposes of credit risk classification. Substantially, all investments are held in the name of the Plan by its custodian bank.
Money Market Account
Page 20
The money market account is a deposit with an Arizona bank. These deposits are insured by federal depository insurance.
The money market account is subject to the general depository laws of the State of Arizona which require deposits to be
either insured by the Federal Deposit Insurance Corporation or collateralized by certain securities including U.S. Government
obligations and first mortgages.
Securities Lending Income
The Plan is party to a securities lending agreement with a bank. The bank, on behalf of the Plan, enters into agreements with
brokers to loan securities and have the same securities returned at a later date. The loans are fully collateralized primarily
by cash. Collateral is marked-to-market on a daily basis. Non-cash collateral can be sold only upon broker default. The Plan
requires collateral of at least 102% of the market value of the loaned U.S. Government or corporate security. Securities on
loan are carried at market value. As of June 30, 1999 and 1998 the market value of securities on loan was $75,170,384 and
$45,764,362, respectively. The Plan receives a negotiated fee for its loan activities and is indemnified for broker default by
the securities lending agent. The Plan participates in a collateral investment pool. All security loans can be terminated on
demand by either the pool participants or the borrower. All term loans have a matched collateral investment. Cash collateral
received for open loans is invested for longer term, however, at least 20% of total collateral investments must be invested on
an overnight basis and at least 30% of total collateral investments must be invested with a maturity of 7 days or less.
Additionally, no more than 20% of the total collateral investments will be invested in instruments maturing in over 91 days.
In lending securities, investments of cash collateral for open loans as of June 30, 1999 are not matched in maturity and have
a weighted average maturity of 8 days, 16 days as of June 30, 1998. The Plan has no credit risk under this program and has
experienced no default or losses on these loans.
NOTE 3 - CONTRIBUTIONS REQUIRED AND CONTRIBUTIONS MADE
The Retirement Plan's funding policy provides for periodic employer contributions at actuarially determined rates that,
expressed as percentages of annual covered payroll, are designed to accumulate sufficient assets to pay benefits when due.
The normal cost and actuarial accrued liability are determined using an entry age actuarial funding method. Unfunded
actuarial accrued liabilities and assets in excess of actuarial accrued liabilities are being amortized as a level percent of
payroll over a rolling twenty (20) year period.
During the year ended June 30, 1999, contributions totaling $6,911,141 ($3,941,018 employer and $2,970,123 member) were
made in accordance with contribution requirements determined by an actuarial valuation of the plan as of June 30, 1997. The
employer contributions consisted of $7,297,525 for normal cost less ($3,356,507) for amortization of the assets in excess
of the actuarial accrued liability in aggregate. Employer contributions represented 8.9% of covered payroll. [16.48% for normal
costs and (7.58)% for amortization of assets in excess of the actuarial accrued liability in aggregate.] Member contributions
represented 7.00% of covered payroll and is all attributable to normal costs.
During the year ended June 30, 1998, contributions totaling $6,963,050 ($3,668,144 employer and $3,294,906 member) were
made in accordance with contribution requirements determined by an actuarial valuation of the plan as of June 30, 1996. The
employer contributions consisted of $4,738,987 for normal cost less ($1,070,843) for amortization of the assets in excess
of the actuarial accrued liability in aggregate. Employer contributions represented 12.64% of covered payroll. [16.33% for
normal costs and (3.69)% for amortization of assets in excess of the actuarial accrued liability in aggregate.] Member
contributions represented 7.00% of covered payroll and is all attributable to normal costs.
NOTE 4 – REQUIRED SCHEDULES
The Schedule of Funding Progress and the Schedule of Employer Contributions are presented immediately following the notes
to the financial statements.
NOTE 5 – YEAR 2000 ISSUE
The year 2000 issue is the result of shortcomings in many electronic data processing systems and other electronic
equipment that may adversely affect the plan’s operations this year.
The Plan has completed an inventory of computer systems and other electronic systems that are necessary to conduct
the plan’s operations, which may be affected by the year 2000 issue. These systems have been tested and validated to
comply with any problems created by the year 2000 issue. The Plan has also conducted tests with its bank to insure
that the bank is 2000 compliant for direct deposit of pension payments.
The Plan’s testing, as well as its bank’s testing, did not indicate any problem with the year 2000 issue. However, until the
year 2000, these efforts cannot be judged as to its success.
Page 21
STATE OF ARIZONA
ELECTED OFFICIALS’ RETIREMENT PLAN
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
While not any one or two numeric indices can fully describe the financial condition of a retirement plan, the ratio of
unfunded actuarial accrued liabilities to active member payroll is significant. The ratio of unfunded actuarial accrued
liabilities to member payroll is a relative index of condition where inflation is present in both items. Observation of the
ratio over a period of years gives an indication of funding achievement. The smaller the index, the stronger the
system's condition. Shown below is a Comparative Schedule ($ in thousands) since legislation was enacted in 1982,
setting up a 40-year amortization schedule. Effective June 30,1997, Unfunded (Excess) Actuarial Accrued Liabilities
are being amortized on a level percent method over a rolling twenty (20) year period.
Actuarial
Valuation
Date
Actuarial
Value of
Assets
(a) 2
Actuarial
Accrued
Liability (AAL)
—Entry Age
(b)
Unfunded
(Excess)
AAL (UAAL)
(b-a)
Funded
Ratio
(a/b)
Covered
Payroll
(c)
UAAL as a
Percentage
of Covered
Payroll
((b-a)/c)
6-30-82 $ 13,162 $ 18,357 $ 5,195 71.7% $ 7,444 69.8%
6-30-83 15,350 19,013 3,663 80.7 8,087 45.3
6-30-84 17,694 19,694 2,000 89.8 8,113 24.7
6-30-85* 3 49,900 48,969 (931) 101.9 17,691 (5.3)
6-30-86 58,757 53,427 (5,330) 110.0 17,842 (29.9)
6-30-87 1 65,818 66,642 824 98.8 20,409 4.0
6-30-88 1 73,993 77,908 3.915 95.0 21,444 18.3
6-30-89* 1 84,258 90,951 6.693 92.6 24,605 27.2
6-30-90* 1 92,421 100,433 8.012 92.0 25,776 31.1
6-30-91* 1 103,570 109,650 6.080 94.5 27,838 21.8
6-30-92* 1 115,869 115,098 (771) 100.7 27,777 (2.8)
6-30-93* 127,984 127,478 (506) 100.4 29,708 (1.7)
6-30-94 1 140,145 138,322 (1,823) 101.3 29,633 (6.2)
6-30-95 1 159,111 149,366 (9,745) 106.5 30,324 (32.1)
6-30-96* 181,754 158,126 (23,628) 114.9 29,967 (78.8)
6-30-97* 214,035 169,593 (44,442) 126.2 33,896 (131.1)
6-30-98 241,884 199,662 (42,222) 121.1 40,441 (104.4)
6-30-99 $ 283,337 $ 227,100 $ (56,237) 124.8% $ 43,087 (130.5) %
* One-time cost-of-living adjustments for retired members and survivors, effective July 1 were included in this
valuation. Future increases for retirees and their survivors over age fifty-five are dependent upon excess earnings
created by the Fund.
1. Reflects significant plan amendments or assumption changes.
2. Excludes the amount held in reserve for future benefit increases. Beginning 6-30-95, includes an amount for
partial recognition of the difference between market value and book value of system assets amortized over a four
year period.
3. Reflects the 1985 amendment consolidating the Judges’ Retirement System and the Elected Officials’
Retirement Plan.
AAL is calculated using the entry age normal method. Significant assumptions used in determining AAL include (a) a
rate of return on the investment of present and future assets of 9.0% per year compounded annually, (b) projected
salary increases of 7.0% per year compounded annually, attributable to an assumed inflation rate of 5.5% and other
across-the-board factors of 1.5%.
Page 22
STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Employer Contributions
Annual
Year Ended Required Percentage
June 30 Contribution Contributed
1990 $3,048,190 100%
1991 $4,141,666 100%
1992 $4,830,326 100%
1993 $4,941,470 100%
1994 $5,555,890 100%
1995 $5,224,545 100%
1996 $4,886,479 100%
1997 $4,934,939 100%
1998 $3,668,144 100%
1999 $3,941,018 100%
Refundable Future Benefit
Members' Employers' Increase
Reserve Reserve Reserve
Balance -- June 30, 1997 $ 17,978,673 $ 238,505,317 $ 3,829,903
Distribution of Revenues and Expenses:
Members' Contributions 3,294,906
Employers' Contributions 3,668,144
Earnings on Investments 54,378,360
Pension Benefits (10,963,879)
Refunds to Terminated Members (30,960)
Administrative Expenses (59,967)
Distribution of Transfers:
Excess Investment Earnings to be used
for Future Benefit Increases (10,870,740) 10,870,740
Earnings on Excess Investment Earnings Acct Assets (813,088) 813,088
Amount Utilized by Benefit Increases Granted 888,283 (888,283)
Amount Transferred by HB 2496 Second Session 1998 (15,136,519) 15,136,519
Net Transfers from Other State-Sponsored Pension Plans 300,542 428,152
Inter-System Transfers -- Member Account
Balances Transferred to Employers' Reserve
due to Retirement (840,129) 840,129
Balance -- June 30, 1998 $ 20,703,032 $ 260,864,192 $29,761,967
Distribution of Revenues and Expenses:
Members' Contributions 2,970,123
Employers' Contributions 3,941,018
Earnings on Investments Net of Investment Expenses 53,424,808
Pension Benefits (11,991,654)
Refunds to Terminated Members (168,980)
Administrative Expenses (60,307)
Distribution of Transfers:
Excess Investment Earnings to be used
for Future Benefit Increases (9,129,468) 9,129,468
Earnings on Excess Investment Earnings Acct Assets (5,214,297) 5,214,297
Amount Utilized by Benefit Increases Granted 3,623,737 (3,623,737)
Net Transfers from Other State-Sponsored Pension Plans 29,175 18,687
Inter-System Transfers -- Member Account
Balances Transferred to Employers' Reserve
due to Retirement (2,027,579) 2,027,579
Balance -- June 30, 1999 $ 21,505,771 $ 297,504,295 $40,481,995
STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN
SUPPORTING SCHEDULE OF CHANGES IN FUND BALANCE RESERVES
FOR THE YEARS ENDED JUNE 30, 1999 AND 1998
Page 23
Administrative Investment Total
Accounting and Auditing Services $ 3,800 $ - $ 3,800
Actuarial Services 21,670 - 21,670
Contractual Services 1,077 584 1,661
Educational Expenses 539 960 1,499
Furniture and Equipment 2,514 1,364 3,878
Investment Equipment - 237 237
Investment Services - 86 86
Occupancy Expenses 1,608 291 1,899
Office Supplies 536 203 739
Payroll Taxes and Fringe Benefits 3,017 2,455 5,472
Postage Expense 1,306 236 1,542
Printing, Publications and Subscriptions 4,125 63 4,188
Professional Services 1,446 262 1,708
Salaries and Wages 18,138 14,761 32,899
Telephone Expense 430 123 553
Travel Expense 101 497 598
$ 60,307 $ 22,122 $ 82,429
Fees Paid
$ (1)
21,670
3,800
1,708
$ 27,178
(1) This Service was provided to the Plan without charge by Standard & Poor's Securities, Inc.
The value of these services is approximately $5,000
STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN
SUPPORTING SCHEDULE OF ADMINISTRATIVE AND INVESTMENT EXPENSES
FOR THE FISCAL YEAR ENDED JUNE 30, 1999
Standard & Poor's - Investment Counsel
Gabriel, Roeder, Smith & Company - Consulting Actuaries
Barrows & Schatza, P.L.C. - Auditors
Leiberman, Dodge, Sendrow & Gerding, Ltd. - Legal Counsel
FOR THE FISCAL YEAR ENDED JUNE 30, 1999
STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN
SUPPORTING SCHEDULE OF PAYMENTS TO CONSULTANTS
Page 24
1999 1998
RECEIPTS:
Members' Contributions $ 3,061,867 $ 3,296,372
Employers' Contributions 4,104,993 3,494,154
Interest 6,578,393 6,860,360
Dividends 2,202,755 2,871,174
Securities Lending Income 78,299 78,480
Amounts Transferred from Other
State-Sponsored Pension Plans 142,523 728,694
Maturities and Sales of:
U.S. Government Securities 8,252,200 6,195,987
Corporate Bonds 591,649 2,032,718
Corporate Notes 325,772,917 309,688,325
Other Investments 1,289,724 490,321
Common Stock 112,990,626 48,923,471
Net Decrease in Money Market Fund - 518,481
Total Receipts: 465,065,946 385,178,537
DISBURSEMENTS:
Pension Benefits 11,991,654 10,963,879
Refunds to Terminated Members 168,980 30,960
Investment and Administrative Expenses 82,429 79,523
Amounts Transferred to Other
State-Sponsored Pension Plans 94,661 -
Acquisitions of:
U.S. Government Securities 4,967,515 -
Corporate Bonds 5,272,860 9,217,583
Corporate Notes 325,773,519 306,701,163
Other Investments 3,337,500 2,605,721
Common Stock 113,011,289 55,586,689
Net Increase in Money Market Fund 365,539 -
Total Disbursements: 465,065,946 385,185,518
DECREASE IN CASH - (6,981)
BEGINNING CASH BALANCES, July 1 - 6,981
ENDING CASH BALANCES, June 30 $ - $ -
FOR THE YEARS ENDED JUNE 30, 1999 AND 1998
STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN
SUPPLEMENTAL SCHEDULE OF
CASH RECEIPTS AND CASH DISBURSEMENTS
Page 25
Page 26
INVESTMENT SECTION
ELECTED OFFICIALS’ RETIREMENT PLAN
EIGHTEENTH COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 1999
Fund Objectives
Investment Performance Data
Supporting Schedule of Commissions Paid to Brokers
Summary of Changes in Investment Portfolio
Detailed List of Investments Acquired
Detailed List of Sales
and Redemption of Investments
Detailed List of Investments Owned
Page 28
Page 29
FUND OBJECTIVES
1. The intent of the Public Safety Personnel Retirement System, the Elected Official's Retirement Plan and the
Corrections Officer Retirement Plan (herein after referred to as the Plan) is to provide the Plan participants
benefits as defined in Title 38, chapter 5, articles 3, 4 and 6 of the Arizona Revised Statutes.
2. The Fund Manager and the Administrator will discharge their duties with respect to the Plan solely in the
interest of the Plan participants, beneficiaries and employer sponsors. In making every investment, the Fund
Manager shall exercise the judgment and care under the circumstances then prevailing which men of ordinary
prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to
speculation but in regard to the permanent disposition of their funds, considering the probable income from
their funds as well as the probable safety of their capital, provided these investments are made in conformity
with all applicable laws.
3. The intention of the Plan is to maintain the benefit level as stated in Title 38, chapter 5, articles 3, 4 and 6 of the
Arizona Revised Statutes and as amended from time to time by the Arizona State Legislature. In order to
maintain this benefit level the Plan will annually adjust the employer contribution rate based on the
recommendations made by the annual actuarial valuations. The Plan’s funding goal is for the Plan assets to be
equal to Plan liabilities within any twenty-year period.
4. It is the intent of the Plan to level off or reduce the employer contribution rate to the Plan as well as to provide
the opportunity for increased benefits for retirees as the legislature may from time to time enact, through the
systematic growth of the investments of the fund.
5. The primary objective of the investment program of the Plan is a reasonable, long-range total rate of return.
Inherent in this goal is the preservation and enhancement of capital through effective management of the
portfolio in order to take advantage of attractive opportunities various market sectors have to offer.
Adopted this 17th day of June, 1998, by the Fund Manager.
John A. Cochran/sig
_______________________________
John A. Cochran, Ph.D., Chairman
F. Michael Geddes/sig
_____________________________
F. Michael Geddes, Member
Donald L. De Ment/sig
___________________________
Donald L. De Ment, Member
Carmen Torrie/sig
_____________________________
Carmen Torrie, Member
Tony West/sig
___________________________
Tony West, Member
Added 11-57-92
Revised 11-55-97
Revised 06-45-98
Page 30
Standard & Poor’s Investment
Advisory Services, Inc.
55 Water Street
New York, NY 10041
Tel: (212) 438-9546
Fax: (212) 438-9511
September 8, 1999
The Fund Manager
Elected Officials' Retirement Plan
Dear Sirs:
The attached charts and tables depict the investment performance for the Elected Officials'
Retirement Plan of the State of Arizona. The performance results shown are based entirely on
data provided by the plan's staff and does not constitute an audit on Standard & Poor's part. We
note that Standard & Poor's has assumed that all data that has been supplied by the staff is
accurate and complete and that Standard & Poor's has not taken steps to verify same. We also
note that the performance was calculated under the assumption that cash inflows and outflows
take place uniformly through each month.
The performance data include realized and unrealized capital gains and losses, as well as interest
and dividend income earned by the fund. We believe these computations were performed in
accordance with accepted AIMR procedures.
Based on the foregoing, during the past fiscal year, the stock portfolio outperformed the NYSE
and S&P 500 indices, while the bond portfolio underperformed the Lehman
Government/Corporate Index. The overall fund outperformed two custom benchmarks, each
using a bond and stock index invested the same proportion as the overall fund. The overall fund
has attained a rate of return over the past decade that compares favorably with these custom
indices.
Sincerely,
Kenneth Shea/sig
Kenneth Shea
VP - Director of Equity Research
Market Total Balanced
FYE Value Contribution Return Index*
06-30-99 $356,162,525 ($1,394,667) 17.52% 11.94%
06-30-98 308,491,389 (3,652,362) 21.23% 17.82%
06-30-97 257,721,510 (2,741,753) 24.58% 16.85%
06-30-96 209,379,157 (2,790,415) 17.69% 12.99%
06-30-95 180,418,272 (1,649,899) 18.78% 14.82%
06-30-94 153,422,862 54,156 -0.19% -1.03%
06-30-93 153,665,647 (794,301) 10.70% 11.22%
06-30-92 139,529,010 844,693 16.29% 11.51%
06-30-91 119,192,732 625,797 12.31% 7.19%
06-30-90 105,498,890 420,839 12.25% 8.49%
06-30-89 93,578,548 1,095,348 16.61% 13.23%
06-30-88 79,125,721 1,018,730 1.80% -0.33%
06-30-87 76,655,143 554,007 11.01% 11.20%
06-30-86 68,508,067
Total Fund
3-year 21.07% 15.51%
5-year 19.93% 14.86%
Custom Index 1
Since 1990, the asset class weightings have been calculated using the average weightings of the quarter's
beginning & ending market values.
Annualized Returns
Cumulative Returns - Total Fund
Elected Officials
*Balanced Index is 45% NYSE + 45% Lehman Government/Corporate Bond + 10% 91 day T-bill. Beginning FY
98/99, S&P 500 replaces NYSE.
Prior to 1990 the weightings in each asset class were calculated using the fiscal year-end market values.
100
150
200
250
300
350
400
450
500
550
600
86 87 88 89 90 91 92 93 94 95 96 97 98 99
Balanced Index Total Fund
Page 31
Market Total NYSE S&P
FYE Value Contribution Return Index* 500
06-30-99 $268,364,567 ($6,297,570) 23.04% 11.40% 22.76%
06-30-98 219,970,996 3,973,823 25.63% 27.35% 30.16%
06-30-97 172,058,639 (1,803,249) 33.72% 28.48% 34.69%
06-30-96 130,754,134 2,472,036 25.68% 23.08% 26.00%
06-30-95 100,984,922 (4,284,646) 24.88% 19.04% 26.06%
06-30-94 84,956,830 858,704 -0.41% 1.58% 1.23%
06-30-93 84,488,875 9,068,166 9.90% 11.04% 13.52%
06-30-92 68,365,688 6,044,772 18.05% 10.25% 13.45%
06-30-91 52,650,675 9,161,349 12.21% 4.09% 7.39%
06-30-90 37,844,300 5,083,288 22.43% 9.88% 16.44%
06-30-89 26,506,185 (3,016,405) 24.94% 15.17% 20.54%
06-30-88 24,034,290 (805,321) -8.16% -9.70% -6.97%
06-30-87 27,185,325 4,220,210 21.22% 18.83% 25.19%
06-30-86 18,284,450
Total Stocks NYSE S&P 500
3-year 27.38% 22.15% 29.11%
5-year 26.54% 21.71% 27.87%
Cumulative Returns - Stocks
Elected Officials
Annualized Returns
*Our investment universe is the New York Stock Exchange (NYSE) prior to July 21,1997.
100
200
300
400
500
600
700
800
900
86 87 88 89 90 91 92 93 94 95 96 97 98 99
NYSE Stocks S&P 500
Page 32
Market Total
FYE Value Contribution Return Lehman*
06-30-99 $87,797,958 $4,902,903 2.55% 2.69%
06-30-98 88,520,393 (7,626,185) 12.28% 11.08%
06-30-97 85,666,634 (938,504) 9.98% 7.75%
06-30-96 78,625,023 (5,262,451) 6.02% 4.65%
06-30-95 794,333,350 2,634,747 11.67% 12.75%
06-30-94 68,466,032 (804,548) 0.08% -1.45%
06-30-93 69,176,772 (9,862,467) 11.75% 13.15%
06-30-92 71,163,322 (5,200,079) 15.00% 14.17%
06-30-91 66,542,057 (8,535,552) 11.55% 10.21%
06-30-90 67,654,590 (4,662,449) 8.05% 7.11%
06-30-89 67,072,363 4,111,753 13.40% 12.34%
06-30-88 55,091,431 1,824,079 7.61% 7.48%
06-30-87 49,469,818 (3,666,202) 6.12% 4.68%
06-30-86 50,223,617
Total Bonds Lehman
3-year 8.19% 7.12%
5-year 8.44% 7.72%
*The Lehman Government/Corporate bond index includes more than 5,000 public traded bond issues of $25
million or more rated Baa or better for a total market value of more than $2 trillion.
Annualized Returns
Cumulative Return - Bonds
Elected Officials
100
150
200
250
300
350
86 87 88 89 90 91 92 93 94 95 96 97 98 99
Lehman Fund
Page 33
Number of Shares Average
Broker Traded Commission Commissions
Covato Lipsitz 211,094 0.050 $ 10,555
ISI Group 225,500 0.050 11,275
J.W.Garrett 457,000 0.050 22,850
Merrill Lynch 516,000 0.017 8,925
Paine Webber 404,000 0.033 13,451
Prudential Securities 498,250 0.031 15,587
Smith Barney--Phoenix 521,000 0.029 14,875
Smith Barney--Scottsdale 454,200 0.028 12,695
Simon Securities 600,705 0.050 30,035
Standard & Poor's Securities 493,000 0.050 24,650
Total Commissions 4,380,749 0.038 $ 164,898
The Plan typically pays $ .05 per share traded plus SEC charges on sale transactions. Over the Counter
stocks are typically traded net of commissions. The firms with an average commission of less than $.05
have traded Over the Counter stocks net of commissions for the Plan.
STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN
SUPPORTING SCHEDULE OF COMMISSIONS PAID TO BROKERS
FISCAL YEAR ENDED JUNE 30, 1999
Page 34
Percent Percent
at Fair Book Maturites (Premium) Book Fair at Fair
Description Value Value Value Acquisitions and Sales Discount Value Value Value
U.S. Treasury
Obligations 6.9% 21,169,220.00 18,019,073.00 0.00 2,001,032.00 (19,783.00) 15,998,258.00 18,339,980.00 5.1%
Federal Agency
Obligations 7.4% 22,750,932.56 21,331,274.57 4,967,514.66 6,233,167.50 751.00 20,066,372.73 20,861,563.51 5.9%
Total U.S. Government
Securities 14.3% 43,920,152.56 39,350,347.57 4,967,514.66 8,234,199.50 (19,032.00) 36,064,630.73 39,201,543.51 11.0%
Corporate Bonds 12.7% 39,274,698.25 35,804,252.59 5,272,860.35 534,078.10 (39,464.00) 40,503,570.84 40,855,899.48 11.5%
Total Bond
Portfolio 27.0% 83,194,850.81 75,154,600.16 10,240,375.01 8,768,277.60 (58,496.00) 76,568,201.57 80,057,442.99 22.5%
Corporate Notes 0.6% 1,997,205.00 1,997,205.00 325,773,518.93 325,772,917.26 0.00 1,997,806.67 1,997,806.67 0.6%
Common Stock 71.3% 219,970,995.81 125,929,882.55 113,011,288.78 68,529,627.76 0.00 170,411,543.57 268,364,567.00 75.3%
Other Investments 1.0% 3,115,399.87 3,115,399.87 3,337,500.00 1,288,667.30 0.00 5,164,232.57 5,164,232.57 1.4%
Mony Market Account 0.1% 212,937.00 212,937.00 365,538.75 0.00 0.00 578,475.75 578,475.75 0.2%
Total Portfolio 100.0% 308,491,388.49 206,410,024.58 452,728,221.47 404,359,489.92 (58,496.00) 254,720,260.13 356,162,524.98 100.0%
STATE OF ARIZONA
Balance June 30, 1998 Balance June 30, 1999
ELECTED OFFICIALS' RETIREMENT PLAN
SUMMARY OF CHANGES IN INVESTMENT PORTFOLIO
FOR THE FISCAL YEAR ENDED JUNE 30, 1999
Page 35
Purchase (Premium) Accrued
Security Coupon Maturity Price Par Value Principal Discount Interest Total Amount Yield
GNMA POOL #472997 7.000 06/15/29 99.46875 2,000,000.00 1,989,375.00 10,625.00 8,555.56 1,997,930.56 7.04%
GNMA POOL #510958 7.000 05/15/29 99.28125 2,999,700.00 2,978,139.66 21,560.34 12,832.05 2,990,971.71 7.05%
4,999,700.00 4,967,514.66 32,185.34 21,387.61 4,988,902.27 7.05%
CORPORATE BONDS
JPM CAPITAL TRUST II 7.950 02/01/27 104.61500 1,000,000.00 1,046,150.00 (46,150.00) 8,170.83 1,054,320.83 7.60%
LEHMAN BROTHERS HOLDINGS INC 8.800 03/01/15 111.91104 1,000,000.00 1,119,110.35 (119,110.35) 38,866.67 1,157,977.02 7.86%
SECURITY NATIONAL MORTAGE LOAN 7.870 08/25/30 100.00000 1,000,000.00 1,000,000.00 0.00 0.00 1,000,000.00 7.87%
SECURITY NAT'L MORTGAGE 99-1 8.353 09/25/30 100.00000 1,000,000.00 1,000,000.00 0.00 0.00 1,000,000.00 8.35%
USF&G CAPITAL II, SERIES B 8.470 01/10/27 110.76000 1,000,000.00 1,107,600.00 (107,600.00) 7,528.89 1,115,128.89 7.65%
TOTAL CORPORATE BONDS 5,000,000.00 5,272,860.35 (272,860.35) 54,566.39 5,327,426.74 7.86%
TOTAL BONDS PURCHASED 9,999,700.00 10,240,375.01 (240,675.01) 75,954.00 10,316,329.01 7.96%
TOTAL FEDERAL AGENCY OBLIGATIONS
ELECTED OFFICIALS' RETIREMENT PLAN
BONDS ACQUIRED
STATE OF ARIZONA
INVESTMENTS ACQUIRED
JULY 1, 1998 THROUGH JUNE 30, 1999
FEDERAL AGENCY OBLIGATIONS
Page 36
Page 1 of 4
Date Interest Maturity Amount of Maturity
Acquired Description Rate Date Cost Interest Value
06/23/98 MERRILL LYNCH & CO,INC. 5.590 07/02/98 1,997,205.00 2,795.00 2,000,000.00
07/02/98 MERRILL LYNCH & CO,INC. 5.550 07/08/98 1,998,150.00 1,850.00 2,000,000.00
07/08/98 HERTZ CORP 5.500 07/31/98 996,486.11 3,513.89 1,000,000.00
07/08/98 RELIASTAR MORTGAGE CO 5.520 07/14/98 999,080.00 920.00 1,000,000.00
07/09/98 DISTRIBUTOR FUNDING 5.530 07/15/98 1,998,156.67 1,843.33 2,000,000.00
07/09/98 KZH-SOLEIL-2 CORP 5.510 07/15/98 999,081.67 918.33 1,000,000.00
07/13/98 BANCA CRT FINANCIAL COR 5.550 07/20/98 998,920.83 1,079.17 1,000,000.00
07/14/98 TRIDENT CAPITAL FINANCE 5.520 07/23/98 998,620.00 1,380.00 1,000,000.00
07/15/98 HERTZ CORP 5.500 07/20/98 999,236.11 763.89 1,000,000.00
07/15/98 ATLANTIC RICHFIELD 5.520 07/23/98 2,996,320.00 3,680.00 3,000,000.00
07/20/98 HALIFAX PLC 5.480 07/24/98 1,998,782.22 1,217.78 2,000,000.00
07/23/98 HASBRO INC. 5.540 07/28/98 1,998,461.11 1,538.89 2,000,000.00
07/23/98 MERRILL LYNCH & CO,INC. 5.480 07/28/98 1,998,477.78 1,522.22 2,000,000.00
07/24/98 DUKE CAPITAL CORP 5.520 07/27/98 1,999,080.00 920.00 2,000,000.00
07/27/98 FORD MOTOR CREDIT CO. 5.520 07/29/98 1,999,386.67 613.33 2,000,000.00
07/28/98 HALIFAX PLC 5.610 07/30/98 1,999,376.67 623.33 2,000,000.00
07/28/98 EXXON ASSET MANAGEMENT 5.550 07/30/98 1,999,383.33 616.67 2,000,000.00
07/30/98 GENERAL MOTORS CORP 5.640 08/03/98 1,998,746.67 1,253.33 2,000,000.00
08/11/98 UBS FINANCE(DELAWARE) 5.470 08/12/98 999,848.06 151.94 1,000,000.00
08/11/98 CONSOLIDATED EDISON CO. 5.500 08/13/98 1,999,388.89 611.11 2,000,000.00
08/17/98 KZH-ING-3 5.810 08/18/98 1,999,677.22 322.78 2,000,000.00
08/17/98 FORD MOTOR CREDIT CO. 5.620 08/19/98 1,999,375.55 624.45 2,000,000.00
08/18/98 DISTRIBUTION FUNDING 5.570 08/20/98 999,690.56 309.44 1,000,000.00
08/18/98 NORWEST CORPORATION 5.500 08/31/98 998,013.89 1,986.11 1,000,000.00
08/19/98 EXXON ASSET MANAGEMENT 5.460 08/24/98 1,998,483.33 1,516.67 2,000,000.00
08/24/98 CASE EQUIP. LOAN TRUST 5.510 08/26/98 1,999,387.78 612.22 2,000,000.00
08/27/98 COUNTRYWIDE HOME LOANS 5.570 08/28/98 999,845.28 154.72 1,000,000.00
08/27/98 NEW ENGLAND ELECTRIC 5.560 09/01/98 1,998,455.56 1,544.44 2,000,000.00
08/28/98 AC ACQUISITION HOLDING 5.500 08/31/98 999,541.67 458.33 1,000,000.00
08/28/98 CAISSE DES DEPOTS 5.580 09/01/98 999,380.00 620.00 1,000,000.00
09/15/98 MERRILL LYNCH & CO,INC. 5.560 09/21/98 999,073.33 926.67 1,000,000.00
09/17/98 CENTERIOR FUEL 5.550 09/30/98 997,995.83 2,004.17 1,000,000.00
09/21/98 FORD MOTOR CREDIT CO. 5.480 09/24/98 999,543.33 456.67 1,000,000.00
09/28/98 ENGELHARD CORP 5.500 09/29/98 2,999,541.67 458.33 3,000,000.00
09/30/98 MARKET STREET FUNDING 5.550 10/05/98 1,998,458.33 1,541.67 2,000,000.00
10/02/98 TRIPLE A-1 FUNDING 5.410 10/06/98 999,398.88 601.12 1,000,000.00
10/05/98 SUN BELT-DIX, INC. 8.500 10/13/98 1,997,555.56 2,444.44 2,000,000.00
10/06/98 TRIDENT CAPITAL FINANCE 5.370 10/30/98 996,420.00 3,580.00 1,000,000.00
10/13/98 PREFERRED RECEIVABLES 5.350 10/16/98 1,999,108.33 891.67 2,000,000.00
10/15/98 DUKE CAPITAL CORP 5.650 10/16/98 999,843.06 156.94 1,000,000.00
10/16/98 EDISON ASSET SECURT. 5.200 10/21/98 1,998,555.56 1,444.44 2,000,000.00
10/16/98 MONTAUK FUNDING CORP 5.250 10/23/98 998,979.17 1,020.83 1,000,000.00
10/21/98 CHARTA CORPORATION 5.150 10/26/98 1,998,569.44 1,430.56 2,000,000.00
10/26/98 MERRILL LYNCH & CO,INC. 4.950 10/29/98 999,587.50 412.50 1,000,000.00
10/26/98 THAMES ASSET GLOBAL SEC 5.120 10/30/98 999,431.11 568.89 1,000,000.00
10/29/98 COMMERZBANK U.S FINANCE 5.280 11/02/98 999,413.33 586.67 1,000,000.00
10/30/98 AMSTERDAM FUNDING CORP 5.680 11/03/98 999,368.89 631.11 1,000,000.00
11/02/98 CINCINNATI BELL INC. 5.550 11/05/98 999,537.50 462.50 1,000,000.00
11/03/98 HALIFAX PLC 5.380 11/05/98 999,701.11 298.89 1,000,000.00
11/05/98 MERRILL LYNCH & CO,INC. 5.050 11/10/98 1,998,597.22 1,402.78 2,000,000.00
11/10/98 FORD MOTOR CREDIT CO. 5.110 11/30/98 997,161.11 2,838.89 1,000,000.00
11/10/98 HERTZ CORP 5.150 11/17/98 998,998.61 1,001.39 1,000,000.00
STATE OF ARIZONA
SHORT TERM INVESTMENTS MATURED
ELECTED OFFICIALS RETIREMENT PLAN
INVESTMENTS ACQUIRED
JULY 1, 1998 THROUGH JUNE 30, 1999
Page 37
Page 2 of 4
Date Interest Maturity Amount of Maturity
Acquired Description Rate Date Cost Interest Value
STATE OF ARIZONA
SHORT TERM INVESTMENTS MATURED
ELECTED OFFICIALS RETIREMENT PLAN
INVESTMENTS ACQUIRED
JULY 1, 1998 THROUGH JUNE 30, 1999
11/12/98 HALIFAX PLC 5.180 11/17/98 1,998,561.11 1,438.89 2,000,000.00
11/13/98 DUKE CAPITAL CORP 5.300 11/20/98 998,969.44 1,030.56 1,000,000.00
11/16/98 MARKET STREET FUNDING 5.670 11/19/98 999,527.50 472.50 1,000,000.00
11/17/98 CONSOLIDATED COAL CO. 5.620 11/23/98 1,998,126.67 1,873.33 2,000,000.00
11/17/98 QUINCY CAPITAL CORP 5.240 11/23/98 999,126.67 873.33 1,000,000.00
11/19/98 NEPTUNE FUNDING 5.050 12/01/98 998,316.67 1,683.33 1,000,000.00
11/20/98 EXXON ASSET MANAGEMENT 4.500 11/25/98 999,375.00 625.00 1,000,000.00
11/23/98 COOPERATIVE ASSN OF TRA 4.650 11/24/98 2,999,612.50 387.50 3,000,000.00
11/24/98 CONSOLIDATED COAL CO. 5.350 12/01/98 998,959.73 1,040.27 1,000,000.00
11/24/98 DUKE CAPIYAL CORP 4.980 12/03/98 998,755.00 1,245.00 1,000,000.00
11/25/98 AMSTERDAM FUNDING CORP 5.020 12/02/98 999,023.89 976.11 1,000,000.00
12/01/98 HALIFAX PLC 4.880 12/04/98 999,593.33 406.67 1,000,000.00
12/01/98 EXXON ASSET MANAGEMENT 4.870 12/07/98 1,998,376.67 1,623.33 2,000,000.00
12/02/98 GEN. MTRS. ACCEPT. CORP 4.790 12/08/98 999,201.67 798.33 1,000,000.00
12/03/98 HOLLAND LIMITED SECURT. 4.850 12/10/98 999,056.94 943.06 1,000,000.00
12/04/98 FORD MOTOR CREDIT CO. 4.630 12/09/98 999,356.94 643.06 1,000,000.00
12/07/98 DAIMLER-BENZ N. AMERICA 4.720 12/10/98 999,606.67 393.33 1,000,000.00
12/08/98 FORD MOTOR CREDIT CO. 4.690 12/11/98 999,609.17 390.83 1,000,000.00
12/08/98 HALIFAX PLC 4.730 12/14/98 1,998,423.33 1,576.67 2,000,000.00
12/10/98 RECEIVABLES CAPIT. CORP 4.790 12/16/98 2,997,605.00 2,395.00 3,000,000.00
12/10/98 WORLD OMNI VEH. LEASING 4.800 12/18/98 998,933.33 1,066.67 1,000,000.00
12/11/98 ALLIEDSIGNAL INC. 5.000 12/15/98 999,444.44 555.56 1,000,000.00
12/14/98 HALIFAX PLC 5.160 12/17/98 1,999,140.00 860.00 2,000,000.00
12/16/98 WORLD OMNI VEH. LEASING 4.920 12/18/98 1,999,453.33 546.67 2,000,000.00
12/17/98 TRIPLE A-1 FUNDING 4.890 12/23/98 1,998,370.00 1,630.00 2,000,000.00
12/18/98 AMSTERDAM FUNDING CORP 4.850 12/28/98 998,652.78 1,347.22 1,000,000.00
12/18/98 FORD MOTOR CREDIT CO. 4.770 12/23/98 999,337.50 662.50 1,000,000.00
12/23/98 FORD MOTOR CREDIT CO. 4.780 12/31/98 998,937.78 1,062.22 1,000,000.00
12/23/98 G.E. CAPITAL CORP 4.820 12/31/98 1,997,857.78 2,142.22 2,000,000.00
12/28/98 WINDMILL FUNDING CORP 5.050 12/29/98 999,859.72 140.28 1,000,000.00
12/31/98 DUKE CAPITAL CORP 5.300 01/06/99 2,997,350.00 2,650.00 3,000,000.00
12/31/98 LUCENT TECHNOLOGIES 4.950 01/06/99 2,997,525.00 2,475.00 3,000,000.00
12/31/98 THREE RIVERS FUNDING 5.200 01/07/99 2,996,966.67 3,033.33 3,000,000.00
01/04/99 GTE FUNDING INC. 4.940 01/08/99 1,998,902.22 1,097.78 2,000,000.00
01/06/99 COUNTRYWIDE HOME LOANS 7.930 01/29/99 996,850.28 3,149.72 1,000,000.00
01/06/99 DUKE CAPITAL CORP 4.650 01/11/99 1,998,708.33 1,291.67 2,000,000.00
01/06/99 GEN. MTRS. ACCEPT. CORP 7.700 01/13/99 1,998,172.22 1,827.78 2,000,000.00
01/08/99 TRIPLE A-1 FUNDING 4.680 01/14/99 1,998,440.00 1,560.00 2,000,000.00
01/11/99 COMMONWEALTH BANK AUST. 5.020 01/14/99 1,999,163.33 836.67 2,000,000.00
01/13/99 REPUBLIC INDUSTRIES 5.050 01/19/99 999,158.33 841.67 1,000,000.00
01/14/99 LEXINGTON PARKER CAP. 4.950 01/19/99 1,998,625.00 1,375.00 2,000,000.00
01/14/99 TRIDENT CAPITAL FINANCE 4.900 01/20/99 999,183.33 816.67 1,000,000.00
01/15/99 THREE RIVERS FUNDING 4.900 01/21/99 1,998,366.66 1,633.34 2,000,000.00
01/19/99 CONSOLIDATION COAL CO. 4.990 01/25/99 1,998,336.67 1,663.33 2,000,000.00
01/19/99 REPUBLIC INDUSTRIES 4.800 01/22/99 1,999,200.00 800.00 2,000,000.00
01/20/99 TRIPLE A-1 FUNDING 4.760 01/26/99 999,206.67 793.33 1,000,000.00
01/21/99 HOLLAND LIMITED SECURT. 4.780 01/28/99 999,070.56 929.44 1,000,000.00
01/21/99 MARSH & MCLENNAN 4.700 01/27/99 999,216.67 783.33 1,000,000.00
01/22/99 REPUBLIC INDUSTRIES 4.770 01/28/99 1,998,410.00 1,590.00 2,000,000.00
01/27/99 COOPERATIVE ASSN OF TRA 4.900 02/02/99 1,998,366.67 1,633.33 2,000,000.00
01/27/99 GTE CORP 4.890 02/01/99 1,998,641.67 1,358.33 2,000,000.00
01/27/99 TRIPLE A-1 FUNDING 4.880 01/29/99 1,999,457.78 542.22 2,000,000.00
Page 38
Page 3 of 4
Date Interest Maturity Amount of Maturity
Acquired Description Rate Date Cost Interest Value
STATE OF ARIZONA
SHORT TERM INVESTMENTS MATURED
ELECTED OFFICIALS RETIREMENT PLAN
INVESTMENTS ACQUIRED
JULY 1, 1998 THROUGH JUNE 30, 1999
01/27/99 VULCAN MATERIALS CO. 4.870 02/01/99 1,998,647.22 1,352.78 2,000,000.00
01/28/99 USA GROUP SMS 4.750 02/01/99 1,998,944.44 1,055.56 2,000,000.00
02/01/99 FALCON ASSET SECURT. 4.840 02/03/99 999,731.11 268.89 1,000,000.00
02/02/99 BRITISH GAS CAPITAL 4.840 02/05/99 999,596.67 403.33 1,000,000.00
02/02/99 COUNTRYWIDE HOME LOANS 4.770 02/04/99 1,999,470.00 530.00 2,000,000.00
02/02/99 INTREPID FUNDING MASTER 4.860 02/26/99 996,760.00 3,240.00 1,000,000.00
02/03/99 EXXON ASSET MANAGEMENT 4.650 02/08/99 1,998,708.33 1,291.67 2,000,000.00
02/04/99 REPUBLIC INDUSTRIES 4.800 02/10/99 1,998,400.00 1,600.00 2,000,000.00
02/05/99 DUKE CAPITAL CORP 4.720 02/09/99 999,475.56 524.44 1,000,000.00
02/08/99 MARKET STREET FUNDING 4.850 02/12/99 1,998,922.22 1,077.78 2,000,000.00
02/09/99 G.E. CAPITAL CORP 4.800 02/11/99 999,733.33 266.67 1,000,000.00
02/10/99 HOLLAND LIMITED SECURT. 4.840 02/11/99 999,865.56 134.44 1,000,000.00
02/10/99 REPUBLIC INDUSTRIES 4.870 02/17/99 1,998,106.11 1,893.89 2,000,000.00
02/11/99 AMSTERDAM FUNDING CORP 4.850 02/19/99 1,997,844.44 2,155.56 2,000,000.00
02/11/99 BLOCK FINANCIAL CORP 4.800 02/19/99 1,997,866.67 2,133.33 2,000,000.00
02/16/99 REPUBLIC INDUSTRIES 4.900 02/19/99 1,999,183.33 816.67 2,000,000.00
02/17/99 DUKE ENERGY CORP 4.730 02/22/99 1,998,686.11 1,313.89 2,000,000.00
02/19/99 ENGELHARD CORP 4.700 02/22/99 1,999,216.67 783.33 2,000,000.00
02/19/99 HOLLAND LIMITED SECURT. 4.680 02/22/99 1,999,220.00 780.00 2,000,000.00
02/19/99 KITTY HAWK FUNDING 4.740 02/23/99 1,998,946.67 1,053.33 2,000,000.00
02/22/99 DUKE CAPITAL CORP 4.820 02/23/99 1,999,732.22 267.78 2,000,000.00
02/22/99 HOLLAND LIMITED SECURT. 4.830 02/23/99 999,865.83 134.17 1,000,000.00
02/23/99 FALCON ASSET SECURT. 4.860 03/01/99 1,998,380.00 1,620.00 2,000,000.00
02/23/99 LIBERTY STREET FUNDING 4.850 03/02/99 999,056.94 943.06 1,000,000.00
02/23/99 REPUBLIC INDUSTRIES 4.830 02/26/99 1,999,195.00 805.00 2,000,000.00
03/01/99 BARTON CAPITAL CORP 4.950 03/03/99 999,725.00 275.00 1,000,000.00
03/01/99 ENGELHARD CORP 5.050 03/02/99 999,859.72 140.28 1,000,000.00
03/02/99 EXPORT DEVELOPMENT CORP 4.800 03/03/99 999,866.67 133.33 1,000,000.00
03/03/99 AMERITECH CORP 4.800 03/31/99 996,266.67 3,733.33 1,000,000.00
03/03/99 ENGELHARD CORP 4.850 03/04/99 999,865.28 134.72 1,000,000.00
03/04/99 CENTENNIAL ENERGY HOLD. 4.800 03/05/99 999,866.67 133.33 1,000,000.00
03/05/99 FAIRWAY FINANCE CORP 4.720 03/09/99 999,475.56 524.44 1,000,000.00
03/09/99 ENGELHARD CORP 4.820 03/10/99 1,999,732.22 267.78 2,000,000.00
03/09/99 QUINCY CAPITAL CORP 4.760 03/11/99 1,999,471.11 528.89 2,000,000.00
03/10/99 DISTRIBUTION FUNDING 4.880 03/12/99 1,999,457.78 542.22 2,000,000.00
03/11/99 QUINCY CAPITAL CORP 4.840 03/16/99 1,998,655.56 1,344.44 2,000,000.00
03/12/99 EAGLE FUNDING 4.820 03/17/99 1,998,661.11 1,338.89 2,000,000.00
03/16/99 CIBA SPECIALTY CHEMICAL 4.800 03/19/99 1,999,200.00 800.00 2,000,000.00
03/16/99 DISTRIBUTION FUNDING 4.780 03/19/99 999,601.67 398.33 1,000,000.00
03/17/99 ALLSTATE CORP 4.780 03/23/99 1,998,406.67 1,593.33 2,000,000.00
03/19/99 CENTENNIAL ENERGY HOLD. 4.750 03/22/99 999,604.16 395.84 1,000,000.00
03/19/99 HOLLAND LIMITED SECURT. 4.750 03/22/99 1,999,208.33 791.67 2,000,000.00
03/22/99 EATON CORPORATION 4.850 03/25/99 1,999,191.67 808.33 2,000,000.00
03/22/99 HOLLAND LIMITED SECURT. 4.830 03/25/99 999,597.50 402.50 1,000,000.00
03/23/99 ENGELHARD CORP 4.800 03/24/99 1,999,733.33 266.67 2,000,000.00
03/24/99 CAISSE DES DEPOTS 4.880 03/25/99 1,999,728.89 271.11 2,000,000.00
03/25/99 ASSET PORTFOLIO FUNDING 4.910 04/01/99 999,045.28 954.72 1,000,000.00
03/25/99 HALIFAX PLC 4.700 03/30/99 1,998,694.44 1,305.56 2,000,000.00
03/25/99 HOLLAND LIMITED SECURT. 4.930 04/01/99 1,998,082.78 1,917.22 2,000,000.00
03/31/99 BONK OF AUSTRIA CP,INC. 4.950 04/05/99 1,998,625.00 1,375.00 2,000,000.00
04/01/99 COOPERATIVE ASSN OF TRA 4.900 04/30/99 996,052.78 3,947.22 1,000,000.00
04/01/99 MARSH & MCLENNAN 5.020 04/07/99 1,998,326.67 1,673.33 2,000,000.00
Page 39
Page 4 of 4
Date Interest Maturity Amount of Maturity
Acquired Description Rate Date Cost Interest Value
STATE OF ARIZONA
SHORT TERM INVESTMENTS MATURED
ELECTED OFFICIALS RETIREMENT PLAN
INVESTMENTS ACQUIRED
JULY 1, 1998 THROUGH JUNE 30, 1999
04/05/99 TRIPLE A-1 FUNDING 4.890 04/08/99 1,999,185.00 815.00 2,000,000.00
04/07/99 CENTAURI (CC USA) 4.760 04/08/99 1,999,735.56 264.44 2,000,000.00
04/08/99 DORADA FINANCE 4.760 04/09/99 999,867.78 132.22 1,000,000.00
04/08/99 EXXON ASSET MANAGEMENT 4.650 04/12/99 1,998,966.67 1,033.33 2,000,000.00
04/09/99 MERRILL LYNCH & C0,INC. 4.650 04/13/99 999,483.33 516.67 1,000,000.00
04/13/99 HOLLAND LIMITED SECURT. 4.710 04/14/99 999,869.17 130.83 1,000,000.00
04/14/99 FORD MOTOR CREDIT CO. 4.730 04/16/99 999,737.22 262.78 1,000,000.00
04/15/99 BANK OF AUSTRIA 4.850 04/19/99 1,998,922.22 1,077.78 2,000,000.00
04/15/99 MERRILL LYNCH & CO,INC. 4.800 04/19/99 999,466.67 533.33 1,000,000.00
04/20/99 ENTERPRISE FUNDING CORP 4.680 04/23/99 999,610.00 390.00 1,000,000.00
04/21/99 ALLMERICA FINANCIAL 4.630 04/23/99 1,999,485.56 514.44 2,000,000.00
04/21/99 FORD MOTOR CREDIT CO. 4.630 04/23/99 1,999,485.56 514.44 2,000,000.00
04/23/99 FORD MOTOR CREDIT CO. 4.590 04/28/99 1,998,725.00 1,275.00 2,000,000.00
04/23/99 GEN. MTRS. ACCEPT. CORP 4.590 04/29/99 2,997,705.00 2,295.00 3,000,000.00
04/29/99 LEXINGTON PARKER CAP. 4.870 05/04/99 2,997,970.83 2,029.17 3,000,000.00
04/29/99 MERRILL LYNCH & CO,INC. 4.850 05/05/99 2,997,575.00 2,425.00 3,000,000.00
04/29/99 NATIONAL AUSTRALIA 4.840 05/04/99 1,998,655.56 1,344.44 2,000,000.00
04/29/99 TRIPLE A-1 FUNDING 4.850 05/04/99 2,997,979.17 2,020.83 3,000,000.00
05/04/99 INTERNT'L LEASE FINANCE 4.820 05/06/99 1,999,464.44 535.56 2,000,000.00
05/04/99 FORD MOTOR CREDIT CO. 4.740 05/28/99 1,993,680.00 6,320.00 2,000,000.00
05/04/99 EXXON PROJECT INVEST. 4.810 05/07/99 1,999,198.33 801.67 2,000,000.00
05/04/99 FORD MOTOR CREDIT CO. 4.800 05/07/99 1,999,200.00 800.00 2,000,000.00
05/05/99 CARGILL GLOBAL FINANCE 4.750 05/10/99 1,998,680.56 1,319.44 2,000,000.00
05/05/99 GEN. MTRS. ACCEPT. CORP 4.730 05/11/99 999,211.67 788.33 1,000,000.00
05/07/99 CONCORD MINUTEMAN CAP. 4.720 05/12/99 1,998,688.89 1,311.11 2,000,000.00
05/07/99 SOMERSET RAILROAD CORP 4.680 05/10/99 999,610.00 390.00 1,000,000.00
05/10/99 MERRILL LYNCH & CO,INC. 4.720 05/13/99 999,606.67 393.33 1,000,000.00
05/11/99 UNITED PARCEL SERVICE 4.620 05/13/99 1,999,486.67 513.33 2,000,000.00
05/12/99 COUNTRYWIDE HOME LOANS 4.710 05/17/99 999,345.83 654.17 1,000,000.00
05/12/99 GEN. MTRS. ACCEPT. CORP 4.720 05/17/99 1,998,688.89 1,311.11 2,000,000.00
05/14/99 TOYS R US 4.820 05/19/99 999,330.56 669.44 1,000,000.00
05/17/99 MONTAUK FUNDING CORP 5.130 05/18/99 1,999,715.00 285.00 2,000,000.00
05/17/99 GREYHAWK FUNDING LLC 4.900 05/19/99 1,999,455.55 544.45 2,000,000.00
05/18/99 WORLD OMNI VEH. LEASING 4.920 05/20/99 999,726.67 273.33 1,000,000.00
05/19/99 CENTENNIAL ENERGY HOLD. 4.800 05/20/99 999,866.66 133.34 1,000,000.00
05/21/99 DULE CAPITAL CORP 4.680 05/25/99 1,998,960.00 1,040.00 2,000,000.00
05/25/99 ATLANTIS ONE FUNDING 4.700 05/27/99 999,738.89 261.11 1,000,000.00
05/28/99 EAGLE FUNDING 4.950 06/03/99 999,175.00 825.00 1,000,000.00
06/03/99 PG&E CORPORATION 4.800 06/30/99 996,400.00 3,600.00 1,000,000.00
06/09/99 ALLMERICA FINANCIAL 4.680 06/11/99 999,740.00 260.00 1,000,000.00
06/09/99 BANK AUSTRIA COMMERCIAL 4.790 06/23/99 1,996,274.44 3,725.56 2,000,000.00
06/09/99 FORD MOTOR CREDIT CO. 4.700 06/14/99 999,347.22 652.78 1,000,000.00
06/11/99 POTOMAC ELECTRIC POWER 4.800 06/17/99 999,200.00 800.00 1,000,000.00
06/14/99 LUCENT TECHNOLOGIES 4.870 06/17/99 999,594.17 405.83 1,000,000.00
06/16/99 ALLSTATE CORP 4.760 06/21/99 999,338.89 661.11 1,000,000.00
06/17/99 FORD MOTOR CREDIT CO. 4.630 06/21/99 1,998,971.11 1,028.89 2,000,000.00
06/21/99 DIAGEO CAPITAL PLC 4.750 06/23/99 999,736.11 263.89 1,000,000.00
06/21/99 WORLD OMNI VEH. LEASING 4.770 06/23/99 1,999,470.00 530.00 2,000,000.00
06/23/99 WORLD OMNI VEH. LEASING 4.800 06/28/99 1,998,666.67 1,333.33 2,000,000.00
TOTALS 325,772,917.26 227,082.74 326,000,000.00
Page 40
Page 1 of 2
No. Dividend Annual Book Average Book
Company Shares Rate Income Yield Cost Cost
3COM CORPORATION 10,000 0.00 0.00 0.00% 30.02 300,179.00
AIRBORNE FREIGHT CORP 15,000 0.16 2,400.00 0.52% 30.78 461,712.00
AIRTOUCH COMMUNICATIONS 20,000 0.16 3,200.00 0.27% 59.96 1,199,164.00
ALASKA AIR GROUP 9,000 0.00 0.00 0.00% 37.29 335,651.40
ALLTELL CORPORATION 11,000 1.22 13,420.00 1.85% 65.82 724,043.10
AMERICA ONLINE 20,000 0.00 0.00 0.00% 142.39 2,847,864.80
AMERICAN EXPRESS 35,000 0.98 34,300.00 0.93% 105.83 3,704,177.00
AMGEN 50,000 0.00 0.00 0.00% 71.35 3,567,263.00
APPLIED MATERIALS 45,000 0.00 0.00 0.00% 35.85 1,613,058.00
AT&T CORP 64,000 0.88 56,320.00 1.47% 60.01 3,840,425.00
BANK OF AMERICA CORPORATION 15,000 1.80 27,000.00 2.63% 68.37 1,025,476.50
BANK OF NEW YORK 15,000 0.56 8,400.00 1.45% 38.53 577,987.50
BANK ONE CORPORATION 58,644 1.68 98,521.92 10.60% 15.85 929,570.00
BESTFOODS 10,000 0.98 9,800.00 1.76% 55.63 556,250.00
BIOGEN INC 38,000 0.00 0.00 0.00% 94.76 3,600,865.00
BRISTOL-MYERS SQUIBB CO. 23,000 0.88 20,240.00 0.80% 110.23 2,535,184.00
CABLEVISION SYSTEMS CORP 80,000 0.00 0.00 0.00% 59.48 4,758,562.70
CMS ENERGY 8,000 1.32 10,560.00 2.72% 48.55 388,400.00
COMCAST CORP. 114,000 0.00 0.00 0.00% 54.07 6,164,352.40
COMPUWARE CORPORATION 51,000 0.00 0.00 0.00% 69.97 3,568,259.30
CONTINENTAL AIRLINES 43,000 0.00 0.00 0.00% 52.83 2,271,625.30
COSTCO COMPANIES, INC. 78,000 0.00 0.00 0.00% 68.35 5,331,603.90
CVS CORP 110,000 0.24 26,400.00 0.55% 43.86 4,824,375.00
DANA CORP 40,000 1.24 49,600.00 2.92% 42.49 1,699,487.00
DAYTON HUDSON 49,000 0.40 19,600.00 0.70% 57.49 2,817,041.60
DUKE ENERGY 6,000 2.20 13,200.00 3.66% 60.05 360,300.00
EMC CORP 20,000 0.00 0.00 0.00% 68.02 1,360,300.20
ERICSSON 30,000 0.00 0.00 0.00% 27.36 820,875.00
EXPRESS SCRIPTS 4,500 0.00 0.00 0.00% 76.16 342,721.56
FIRST UNION CORP 15,000 1.88 28,200.00 3.53% 53.32 799,819.50
FOX ENTERTAINMENT GRP, IN 25,000 0.00 0.00 0.00% 27.13 678,312.00
FURNITURE BRANDS INTL 23,000 0.00 0.00 0.00% 26.10 600,302.70
GENERAL NUTRITION COMPANIES 96,500 0.00 0.00 0.00% 14.12 1,362,759.15
IMS HEALTH, INC. 53,500 0.08 4,280.00 0.19% 42.97 2,298,798.90
JABIL CIRCUIT 39,000 0.00 0.00 0.00% 52.83 2,060,558.67
JOHNSON CONTROLS 11,000 1.00 11,000.00 1.57% 63.55 699,017.00
LEXMARK INTERNATIONAL GROUP 9,000 0.00 0.00 0.00% 100.52 904,669.20
LILLY ELI 40,000 0.92 36,800.00 1.32% 69.56 2,782,252.00
MICROSOFT CORPORATION 85,000 0.00 0.00 0.00% 101.87 8,658,929.60
MOBIL CORPORATION 11,000 2.28 25,080.00 2.21% 103.16 1,134,812.80
NEWS CORPORATION 8,000 0.07 560.00 0.25% 27.59 220,734.40
NOKIA CORPORATION 22,000 0.37 8,140.00 0.35% 104.61 2,301,387.60
NORTH FORK BANCORPORATION 17,000 0.60 10,200.00 2.81% 21.34 362,781.50
OFFICEMAX INC. 145,000 0.00 0.00 0.00% 11.73 1,700,176.50
PARAMETRIC TECHNOLOGY 25,000 0.00 0.00 0.00% 14.73 368,180.50
PROFFITT'S, INC. 17,500 0.00 0.00 0.00% 32.68 571,849.25
SAFEWAY INC 45,000 0.00 0.00 0.00% 42.95 1,932,558.00
SAKS INCORPORATED 28,500 0.00 0.00 0.00% 30.56 870,889.50
JULY 1, 1997 THROUGH JUNE 30, 1998
COMMON STOCK ACQUIRED
STATE OF ARIZONA
ELECTED OFFICIALS RETIREMENT PLAN
INVESTMENTS ACQUIRED
Page 41
Page 2 of 2
No. Dividend Annual Book Average Book
Company Shares Rate Income Yield Cost Cost
JULY 1, 1997 THROUGH JUNE 30, 1998
COMMON STOCK ACQUIRED
STATE OF ARIZONA
ELECTED OFFICIALS RETIREMENT PLAN
INVESTMENTS ACQUIRED
SBC COMMUNICATIONS INC. 37,000 0.98 36,260.00 1.82% 53.85 1,992,446.60
SCHOLASTIC CORPORATION 7,000 0.00 0.00 0.00% 56.75 397,250.00
SEALED AIR 11,000 0.00 0.00 0.00% 62.60 688,649.50
SOLUTIA INC. 25,000 0.04 1,000.00 0.21% 19.13 478,200.50
STARBUCKS CORP. 7,500 0.00 0.00 0.00% 39.92 299,423.25
STERLING SOFTWARE 5,000 0.00 0.00 0.00% 23.88 119,401.50
TEXACO 42,000 1.80 75,600.00 2.79% 64.45 2,706,991.50
TEXAS UTILITIES 8,000 2.30 18,400.00 4.89% 47.01 376,111.20
TRAVELERS GROUP INC 20,000 2.30 46,000.00 3.80% 60.55 1,210,990.00
TYCO INTERNATIONAL LTD. 23,000 0.10 2,300.00 0.14% 70.67 1,625,429.00
UNIVISION COMMUNICATIONS 20,000 0.00 0.00 0.00% 36.75 734,916.80
WAL-MART STORES 27,000 0.20 5,400.00 0.28% 71.95 1,942,713.60
WARNER-LAMBERT 25,000 0.80 20,000.00 1.05% 76.12 1,902,932.00
WORLDCOM INC. 35,000 0.00 0.00 0.00% 52.70 1,844,415.25
XIRCOM, INC. 66,000 0.00 0.00 0.00% 34.47 2,275,185.00
ZEBRA TECHNOLOGIES A 55,000 0.00 0.00 0.00% 28.74 1,580,670.05
TOTAL COMMON STOCK BOUGHT 722,181.92 0.64% 113,011,288.78
Page 42
Purchase
Name Coupon Maturity Price Book Cost
BRIDGE FINANCIAL
BRIDGE FINANCIAL--15 E. MONROE 12.500 01/05/00 100.00 74,000.00
BRIDGE FINANCIAL--69TH & BELL 12.750 10/07/99 100.00 100,000.00
BRIDGE FINANCIAL--DESERT MIRAGE GC 11.500 09/09/00 100.00 78,000.00
BRIDGE FINANCIAL--GRAND INN 12.500 09/25/00 100.00 100,000.00
BRIDGE FINANCIAL--HAWTHORN SUITES 12.500 05/11/00 100.00 160,000.00
BRIDGE FINANCIAL--MONTESA HOMES 13.000 05/23/00 100.00 40,000.00
BRIDGE FINANCIAL--SAN TAN RANCH 12.000 07/29/99 100.00 193,000.00
BRIDGE FINANCIAL--SCOTTSDALE LINKS 11.500 03/21/01 100.00 77,000.00
BRIDGE FINANCIAL--SHEA MEDICAL PLAZA 12.000 05/28/99 100.00 140,000.00
TOTAL BRIDGE FINANCIAL ACQUIRED 962,000.00
MISCELLANEOUS
DESERT TROON,LLC 100.00 760,000.00
PIVOTAL X,LLC 100.00 1,401,750.00
PIVOTAL X,LLC-SPA AT RED CANYON 100.00 213,750.00
TOTAL MISCELLANEOUS ACQUIRED 2,375,500.00
TOTAL OTHER INVESTMENTS ACQUIRED 3,337,500.00
L.L.C.
L.L.C.
L.L.C.
STATE OF ARIZONA
OTHER INVESTMENTS ACQUIRED
ELECTED OFFICIALS' RETIREMENT PLAN
INVESTMENTS ACQUIRED
JULY 1, 1997 THROUGH JUNE 30, 1998
Page 43
Accrued Amortized
Security Coupon Maturity Par Value Sale Price Interest Principal Cost Gain or (Loss) Amount Due
U.S. TREASURY OBLIGATIONS
U.S. TREASURY NOTE 5.125 12/31/98 2,000,000.00 100.00000 34,538.04 2,000,000.00 2,001,032.00 (1,032.00) 2,034,538.04
TOTAL U.S. TREASURY OBLIGATIONS 2,000,000.00 34,538.04 2,000,000.00 2,001,032.00 (1,032.00) 2,034,538.04
CORPORATE BONDS
AUTO BOND RECEIVABLES TRUST 6.400 04/15/99 42,235.10 100.00000 4,613.75 42,235.10 42,235.10 0.00 46,848.85
OHIO BELL TELEPHONE CO. 7.875 10/01/13 500,000.00 101.99000 8,968.75 509,950.00 491,843.00 18,107.00 518,918.75
TOTAL CORPORATE BONDS 542,235.10 13,582.50 552,185.10 534,078.10 18,107.00 565,767.60
TOTAL BONDS SOLD 2,542,235.10 48,120.54 2,552,185.10 2,535,110.10 17,075.00 2,600,305.64
ELECTED OFFICIALS' RETIREMENT PLAN
BONDS SOLD
STATE OF ARIZONA
SALES AND REDEMPTIONS OF INVESTMENTS
JULY 1, 1998 THROUGH JUNE 30, 1999
Page 44
Page 1 of 2
Shares Sale Gain (Loss) % Gain
Company Sold Price Amount + SEC Fee Net Amount Book Cost on Sale on Sale
3COM CORPORATION 49,000 23.35 1,144,379.60 38.16 1,144,341.44 1,904,287.70 (759,946.26) -39.91%
ABBOTT LABORATORIES 8,000 49.06 392,500.00 0.00 392,500.00 90,827.00 301,673.00 332.14%
ADAPTEC,INC 30,000 13.78 413,323.50 13.79 413,309.71 1,308,167.00 (894,857.29) -68.41%
ALLSTATE CORPORATION 20,000 42.19 843,838.00 1,028.13 842,809.87 370,053.33 472,756.54 127.75%
AMERICAN EXPRESS 5,000 129.94 649,687.50 0.00 649,687.50 524,430.20 125,257.30 23.88%
AMERICAN HOME PRODUCTS 104,000 53.12 5,524,927.65 5,384.20 5,519,543.45 1,532,616.72 3,986,926.73 260.14%
AMP INC 6,387 44.50 284,221.50 0.00 284,221.50 241,188.38 43,033.12 17.84%
AUTOLIV, INC. 4,400 32.75 144,100.00 224.81 143,875.19 118,754.41 25,120.78 21.15%
AUTO DATA PROCESSING 45,000 50.84 2,287,783.00 2,326.28 2,285,456.72 836,185.62 1,449,271.10 173.32%
BANC ONE 51,205 46.29 2,370,062.14 2,639.26 2,367,422.88 1,048,553.61 1,318,869.27 125.78%
BELL ATLANTIC 36,000 42.01 1,512,504.12 1,850.44 1,510,653.68 1,096,569.00 414,084.68 37.76%
BESTFOODS 30,000 51.26 1,537,858.50 1,551.27 1,536,307.23 768,108.22 768,199.01 100.01%
BOEING CO. 95,000 40.43 3,840,890.50 4,878.05 3,836,012.45 4,506,775.00 (670,762.55) -14.88%
CORN PRODUCTS INT'L INC. 8,750 32.68 285,912.50 447.04 285,465.46 110,286.43 175,179.03 158.84%
COSTCO COMPANIES, INC. 1,000 81.69 81,687.50 0.00 81,687.50 61,482.25 20,205.25 32.86%
DMND OFFSHR DRILLING 30,000 22.17 665,127.00 1,522.18 663,604.82 1,311,193.50 (647,588.68) -49.39%
DISNEY CO. (WALT) 90,000 34.28 3,085,051.50 4,602.86 3,080,448.64 1,677,750.00 1,402,698.64 83.61%
ELECTRONIC DATA SYS 38,000 39.85 1,514,242.60 1,950.49 1,512,292.11 1,387,279.68 125,012.43 9.01%
ERICSSON 100,000 25.33 2,533,220.50 84.47 2,533,136.03 2,242,161.50 290,974.53 12.98%
FEDERATED DEPT STORES 30,000 43.88 1,316,373.00 1,543.88 1,314,829.12 1,536,943.50 (222,114.38) -14.45%
FIRST CHICAGO NBD CORP 36,200 25.68 929,570.00 0.00 929,570.00 929,570.00 0.00 0.00%
GANNETT CO. 10,000 67.56 675,579.00 522.52 675,056.48 267,750.00 407,306.48 152.12%
GENERAL MOTORS CO ,INC 25,000 72.20 1,805,104.50 1,310.18 1,803,794.32 1,527,542.63 276,251.69 18.08%
GEN TEL & ELECTRONICS 5,000 53.83 269,160.00 258.98 268,901.02 153,836.54 115,064.48 74.80%
GLOBAL MARINE 50,000 8.66 433,111.00 2,514.45 430,596.55 1,223,954.00 (793,357.45) -64.82%
HEWLETT PACKARD 40,000 69.13 2,765,262.00 2,092.18 2,763,169.82 2,002,000.00 761,169.82 38.02%
HOME DEPOT 7,000 63.31 443,187.50 0.00 443,187.50 107,076.70 336,110.80 313.90%
ILLINOIS TOOL WORKS 20,000 64.42 1,288,321.50 1,042.95 1,287,278.55 539,658.70 747,619.85 138.54%
INTERSTATE BAKERIES 40,000 22.50 899,980.20 2,030.02 897,950.18 1,357,616.00 (459,665.82) -33.86%
INT'L BUSINESS MACHINES 5,000 170.38 851,875.00 0.00 851,875.00 287,280.06 564,594.94 196.53%
JOHNSON & JOHNSON CO 55,000 87.07 4,789,108.59 2,909.68 4,786,198.91 3,420,476.23 1,365,722.68 39.93%
KIMBERLY-CLARK CORP 50,000 43.46 2,173,064.00 2,572.45 2,170,491.55 1,105,318.75 1,065,172.80 96.37%
LILLY ELI 47,500 75.58 3,589,921.05 2,336.47 3,587,584.58 3,255,334.92 332,249.66 10.21%
LOEWEN GROUP 39,000 14.66 571,630.65 1,969.07 569,661.58 1,057,189.90 (487,528.32) -46.12%
MARSH & MCLENNAN CO 36,000 63.00 2,268,019.00 1,875.62 2,266,143.38 1,041,800.00 1,224,343.38 117.52%
Commission
STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN
SALES AND REDEMPTIONS OF INVESTMENTS
COMMON STOCK SOLD
JULY 1, 1998 THROUGH JUNE 30, 1999
Page 45
Page 2 of 2
Shares Sale Gain (Loss) % Gain
Company Sold Price Amount + SEC Fee Net Amount Book Cost on Sale on Sale
Commission
STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN
SALES AND REDEMPTIONS OF INVESTMENTS
COMMON STOCK SOLD
JULY 1, 1998 THROUGH JUNE 30, 1999
MBNA CORP 40,000 29.56 1,182,500.00 0.00 1,182,500.00 524,440.89 658,059.11 125.48%
MCDONALDS CORP 93,500 52.34 4,894,213.20 4,838.16 4,889,375.04 1,517,840.50 3,371,534.54 222.13%
MERCK & CO. 39,500 93.95 3,710,905.55 2,098.73 3,708,806.82 766,187.29 2,942,619.53 384.06%
MOBIL CORPORATION 57,000 84.25 4,802,325.60 3,010.10 4,799,315.50 1,446,696.50 3,352,619.00 231.74%
MORTON INTNL CORP 25,000 35.92 897,908.00 1,279.95 896,628.05 584,667.83 311,960.22 53.36%
MOTOROLA, INC. 12,500 53.96 674,495.25 647.49 673,847.76 340,623.78 333,223.98 97.83%
NATIONAL CITY CORP 70,000 70.00 4,899,955.50 3,663.35 4,896,292.15 2,091,555.00 2,804,737.15 134.10%
NORTHROP GRUMMAN 7,000 61.81 432,702.20 364.43 432,337.77 796,011.30 (363,673.53) -45.69%
OFFICEMAX INC. 30,000 8.64 259,107.00 1,508.64 257,598.36 412,568.10 (154,969.74) -37.56%
PACIFIC CECTURY FINANCIAL 75,000 21.14 1,585,860.70 3,802.91 1,582,057.79 1,064,000.00 518,057.79 48.69%
PARAMETRIC TECHNOLOGY 70,000 15.05 1,053,551.00 35.14 1,053,515.86 1,785,992.50 (732,476.64) -41.01%
PEPSICO INC. 75,000 35.87 2,690,402.50 3,839.71 2,686,562.79 1,554,056.61 1,132,506.18 72.87%
PFIZER INC. 10,000 110.06 1,100,625.00 0.00 1,100,625.00 675,500.00 425,125.00 62.93%
PNC BANK CORPORATION 50,000 53.50 2,675,005.44 2,589.19 2,672,416.25 1,089,025.00 1,583,391.25 145.40%
PPG INDUSTRIES, INC. 16,000 54.78 876,413.00 517.51 875,895.49 421,209.33 454,686.16 107.95%
PROCTER & GAMBLE CO. 70,000 87.65 6,135,454.90 2,388.23 6,133,066.67 1,080,430.23 5,052,636.44 467.65%
QUANTUM CORPORATION 40,000 17.52 700,963.00 23.38 700,939.62 1,178,456.00 (477,516.38) -40.52%
QUORUM HEALTH GROUP 35,800 10.19 364,757.24 12.17 364,745.07 891,564.28 (526,819.21) -59.09%
RAYTHEON CORPORATION 1,594 56.31 89,762.13 82.70 89,679.43 5,432.87 84,246.56 1550.68%
SARA LEE CORP. 135,000 29.96 4,045,036.15 6,884.89 4,038,151.26 2,372,961.00 1,665,190.26 70.17%
SCHERING-PLOUGH CORP 38,500 94.21 3,627,119.55 1,942.44 3,625,177.11 1,280,171.25 2,345,005.86 183.18%
SCHLUMBERGER 55,000 51.25 2,818,917.50 2,843.97 2,816,073.53 1,650,825.00 1,165,248.53 70.59%
STERLING SOFTWARE 21,000 19.80 415,881.40 1,063.87 414,817.53 386,380.63 28,436.90 7.36%
TECO ENERGY INC. 80,000 27.08 2,166,787.22 4,072.24 2,162,714.98 465,504.82 1,697,210.16 364.60%
UNION PACIFIC CORP 30,000 40.88 1,226,250.00 1,540.88 1,224,709.12 1,290,993.59 (66,284.47) -5.13%
WALGREEN COMPANY 100,500 43.38 4,359,900.90 3,622.67 4,356,278.23 732,375.74 3,623,902.49 494.81%
WARNER-LAMBERT 17,000 72.25 1,228,324.80 890.95 1,227,433.85 1,174,140.24 53,293.61 4.54%
TOTAL STOCK SOLD 2,542,336 113,095,709.33 105,083.58 112,990,625.75 68,529,627.76 44,460,997.99 64.88%
Page 46
Name Coupon Maturity Sale Price Book Cost
BRIDGE FINANCIAL
BRIDGE FINANCIAL--AMBASSADOR INN OF PHX 13.000 03/09/98 100.00 104,000.00
BRIDGE FINANCIAL--BELL LOAN 13.000 01/22/99 100.00 102,800.00
BRIDGE FINANCIAL--CRYSTAL SPRINGS 12.750 08/17/99 100.00 1,450.00
BRIDGE FINANCIAL--GREEN FIELD LAKES 12.750 10/31/99 100.00 70,000.00
BRIDGE FINANCIAL--HOLIDAY INN III 12.625 07/07/98 100.00 314,000.00
BRIDGE FINANCIAL--MONTESA HOMES 13.000 05/23/00 100.00 40,000.00
BRIDGE FINANCIAL--PIONEER INDUST. PARK 15.000 05/24/99 100.00 57,476.53
BRIDGE FINANCIAL--SAN TAN RANCH 12.000 07/29/99 100.00 193,000.00
BRIDGE FINANCIAL--TARGET STORE SITE 12.625 04/01/99 100.00 90,000.00
BRIDGE FINANCIAL--UNITED HOMES 12.500 03/26/99 100.00 103,200.00
BRIDGE FINANCIAL--WHITE PEAK LAND 14.000 06/19/99 100.00 152,000.00
TOTAL BRIDGE FINANCIAL SOLD 1,227,926.53
MISCELLANEOUS
PEBBLECREEK PROPERTIES L.P. 10.000 02/19/02 100.00 25,740.77
PIVOTAL X,LLC 0.000 35,000.00
TOTAL MISCELLANEOUS SOLD 60,740.77
TOTAL OTHER INVESTMENTS 1,288,667.30
STATE OF ARIZONA
OTHER INVESTMENTS SOLD
ELECTED OFFICIALS' RETIREMENT PLAN
JULY 1, 1998 THROUGH JUNE 30, 1999
SALES AND REDEMPTIONS OF INVESTMENTS
Page 47
Page 1 of 3
Book Current Annual Book
Par Value Security Coupon Maturity Book Cost Price Price Current Value Gain or (Loss) Income Yield YTM
U.S. TREASURY OBLIGATIONS
5,000,000.00 U.S. TREASURY BOND 14.250 02/15/02 4,999,185.00 99.98370 120.68700 6,034,350.00 1,035,165.00 712,500.00 14.25 11.810
1,000,000.00 U.S. TREASURY BOND 7.500 11/15/16 958,619.00 95.86190 112.70300 1,127,030.00 168,411.00 75,000.00 7.82 6.650
2,000,000.00 U.S. TREASURY BOND 9.125 05/15/18 2,000,000.00 100.00000 131.07800 2,621,560.00 621,560.00 182,500.00 9.13 6.960
1,000,000.00 U.S. TREASURY BOND 9.000 11/15/18 1,000,000.00 100.00000 130.12500 1,301,250.00 301,250.00 90,000.00 9.00 6.920
1,000,000.00 U.S. TREASURY BOND 8.000 11/15/21 1,000,000.00 100.00000 120.57800 1,205,780.00 205,780.00 80,000.00 8.00 6.630
2,000,000.00 U.S. TREASURY NOTE 6.375 07/15/99 2,000,018.00 100.00090 100.09400 2,001,880.00 1,862.00 127,500.00 6.37 6.370
1,000,000.00 U.S. TREASURY NOTE 6.000 10/15/99 1,001,295.00 100.12950 100.29700 1,002,970.00 1,675.00 60,000.00 5.99 5.980
2,000,000.00 U.S. TREASURY NOTE 5.500 04/15/00 2,001,336.00 100.06680 100.17200 2,003,440.00 2,104.00 110,000.00 5.50 5.490
1,000,000.00 U.S. TREASURY NOTE 7.500 11/15/01 1,037,805.00 103.78050 104.17200 1,041,720.00 3,915.00 75,000.00 7.23 7.200
16,000,000.00 15,998,258.00 99.98911 18,339,980.00 2,341,722.00 1,512,500.00 9.5% 8.2%
FEDERAL AGENCY OBLIGATIONS
19,285.72 GNMA POOL # 7766 8.500 02/15/06 14,308.67 74.19308 103.70200 19,999.68 5,691.01 1,639.29 11.46 8.200
54,453.46 GNMA POOL #143093 9.000 06/15/16 52,802.81 0.97000 106.42800 57,953.73 5,150.92 4,900.81 9.28 8.460
26,972.67 GNMA POOL #148408 9.000 05/15/16 25,910.62 0.96000 106.49900 28,725.62 2,815.00 2,427.54 9.37 8.450
317,715.86 GNMA POOL #157733 9.000 05/15/16 294,482.88 0.93000 106.49900 338,364.21 43,881.33 28,594.43 9.71 8.450
704,055.10 GNMA POOL #158992 9.000 06/15/16 700,314.76 0.99000 106.49900 749,811.64 49,496.88 63,364.96 9.05 8.450
206,501.27 GNMA POOL #163336 9.000 07/15/16 200,241.74 0.97000 106.49900 219,921.79 19,680.05 18,585.11 9.28 8.450
173,128.05 GNMA POOL #165863 9.000 08/15/16 165,526.63 0.96000 106.87400 185,028.87 19,502.24 15,581.52 9.41 8.420
156,284.09 GNMA POOL #168530 9.000 08/15/16 152,718.66 0.98000 106.49900 166,440.99 13,722.33 14,065.57 9.21 8.450
130,867.80 GNMA POOL #181945 9.000 04/15/20 125,019.63 0.96000 106.59300 139,495.91 14,476.28 11,778.10 9.42 8.440
118,034.83 GNMA POOL #182127 9.000 11/15/16 115,232.17 0.98000 106.49900 125,705.91 10,473.74 10,623.13 9.22 8.450
240,927.09 GNMA POOL #207671 9.000 07/15/18 227,977.27 0.95000 106.74900 257,187.26 29,209.99 21,683.44 9.51 8.430
86,228.55 GNMA POOL #208705 9.000 05/15/20 80,839.30 0.94000 106.59300 91,913.60 11,074.30 7,760.57 9.60 8.440
67,287.04 GNMA POOL #227210 9.000 09/15/17 63,859.58 0.95000 106.81200 71,870.63 8,011.05 6,055.83 9.48 8.430
133,435.87 GNMA POOL #229798 9.000 10/15/17 130,266.77 0.98000 106.81200 142,525.52 12,258.75 12,009.23 9.22 8.430
112,421.87 GNMA POOL #230557 9.000 04/15/18 107,485.84 0.96000 106.74900 120,009.22 12,523.38 10,117.97 9.41 8.430
38,333.15 GNMA POOL #234695 10.000 12/15/17 38,165.45 1.00000 106.71300 40,906.45 2,741.00 3,833.32 10.04 9.370
420,920.18 GNMA POOL #235280 9.000 04/15/18 396,454.22 0.94000 106.74900 449,328.08 52,873.86 37,882.82 9.56 8.430
89,267.67 GNMA POOL #247096 9.000 05/15/18 84,357.96 0.95000 106.74900 95,292.35 10,934.39 8,034.09 9.52 8.430
79,687.24 GNMA POOL #247310 9.000 04/15/18 76,549.51 0.96000 106.74900 85,065.33 8,515.82 7,171.85 9.37 8.430
137,020.44 GNMA POOL #250933 9.000 06/15/18 133,166.78 0.97000 106.74900 146,267.95 13,101.17 12,331.84 9.26 8.430
52,090.46 GNMA POOL #251643 9.000 04/15/18 50,625.42 0.97000 106.74900 55,606.05 4,980.63 4,688.14 9.26 8.430
ELECTED OFFICIALS' RETIREMENT PLAN
STATE OF ARIZONA
BOND PORTFOLIO
TOTAL U.S. TREASURY OBLIGATIONS
JUNE 30, 1999
INVESTMENTS OWNED
Page 48
Page 2 of 3
Book Current Annual Book
Par Value Security Coupon Maturity Book Cost Price Price Current Value Gain or (Loss) Income Yield YTM
ELECTED OFFICIALS' RETIREMENT PLAN
STATE OF ARIZONA
BOND PORTFOLIO
JUNE 30, 1999
INVESTMENTS OWNED
95,535.18 GNMA POOL #252138 9.000 10/15/18 91,340.59 0.96000 106.74900 101,982.85 10,642.26 8,598.17 9.41 8.430
82,595.20 GNMA POOL #252306 9.000 04/15/18 76,297.33 0.92000 106.74900 88,169.55 11,872.22 7,433.57 9.74 8.430
129,698.77 GNMA POOL #252538 9.000 05/15/18 126,050.99 0.97000 106.74900 138,452.14 12,401.15 11,672.89 9.26 8.430
68,619.03 GNMA POOL #255161 9.000 03/15/19 63,129.46 0.92000 106.68700 73,207.58 10,078.12 6,175.71 9.78 8.440
91,299.78 GNMA POOL #262845 9.000 03/15/20 87,105.67 0.95000 106.59300 97,319.17 10,213.50 8,216.98 9.43 8.440
92,733.71 GNMA POOL #305689 9.000 04/15/21 92,733.71 1.00000 106.49900 98,760.47 6,026.76 8,346.03 9.00 8.450
1,086,246.16 GNMA POOL #377589 7.500 08/15/25 1,083,191.08 1.00000 100.96800 1,096,761.02 13,569.94 81,468.46 7.52 7.430
699,212.07 GNMA POOL #390014 7.000 06/15/24 656,276.08 0.94000 98.96900 692,003.19 35,727.11 48,944.84 7.46 7.070
2,862,805.99 GNMA POOL #391992 7.000 03/15/24 2,678,512.88 0.94000 98.96900 2,833,290.46 154,777.58 200,396.42 7.48 7.070
913,992.02 GNMA POOL #398831 8.000 08/15/26 912,563.90 1.00000 102.84300 939,976.81 27,412.91 73,119.36 8.01 7.780
523,683.94 GNMA POOL #403979 8.500 10/15/24 514,764.95 0.98000 104.78100 548,721.27 33,956.32 44,513.13 8.65 8.110
586,234.97 GNMA POOL #406811 7.500 01/15/26 585,502.19 1.00000 100.93700 591,727.99 6,225.80 43,967.62 7.51 7.430
1,385,413.65 GNMA POOL #427558 7.500 04/15/26 1,381,300.72 1.00000 100.93700 1,398,394.98 17,094.26 103,906.02 7.52 7.430
943,549.07 GNMA POOL #432701 8.000 06/15/26 943,549.07 1.00000 102.84300 970,374.17 26,825.10 75,483.93 8.00 7.780
384,006.14 GNMA POOL #439645 8.000 09/15/26 383,766.16 1.00000 102.84300 394,923.43 11,157.27 30,720.49 8.01 7.780
2,000,000.00 GNMA POOL #472997 7.000 06/15/29 1,989,375.00 0.99000 100.00000 2,000,000.00 10,625.00 140,000.00 7.04 7.000
2,999,700.00 GNMA POOL #510958 7.000 05/15/29 2,978,139.66 0.99000 100.00000 2,999,700.00 21,560.34 209,979.00 7.05 7.000
2,187,150.11 GNMA POOL #780220 7.500 08/15/25 2,186,466.62 1.00000 101.06200 2,210,377.64 23,911.02 164,036.26 7.50 7.420
20,497,394.20 20,066,372.73 97.89719 20,861,563.51 795,190.78 1,570,108.44 7.8% 7.5%
CORPORATE BONDS
1,000,000.00 AGL CAPITAL TRUST 8.170 06/01/37 1,019,225.00 101.92250 107.27700 1,072,770.00 53,545.00 81,700.00 8.02 7.620
1,500,000.00 AMERICAN UNITED LIFE INS CO 7.750 03/30/26 1,414,311.00 94.28740 98.80900 1,482,135.00 67,824.00 116,250.00 8.22 7.840
2,750,000.00 ANTHEM INSURANCE COMPANY INC 9.000 04/01/27 2,926,213.00 106.40775 99.41400 2,733,885.00 (192,328.00) 247,500.00 8.46 9.050
58,257.49 AUTO BOND RECEIVABLE TRUST 6.400 04/15/99 58,257.49 100.00000 100.01200 58,264.48 6.99 3,728.48 6.40 6.400
1,000,000.00 BANKERS TRUST CORP 144A 8.090 12/01/26 1,000,000.00 100.00000 98.88400 988,840.00 (11,160.00) 80,900.00 8.09 8.180
1,000,000.00 FARMERS INSURANCE EXCHANGE 8.625 05/01/24 918,882.00 91.88820 108.57700 1,085,770.00 166,888.00 86,250.00 9.39 7.940
1,000,000.00 FIRST HAWAIIAN CAPITAL TRUST 8.343 07/01/27 1,059,245.00 105.92450 97.34400 973,440.00 (85,805.00) 83,430.00 7.88 8.570
1,000,000.00 FORD MOTOR COMPANY 9.500 09/15/11 999,499.00 99.94990 118.49000 1,184,900.00 185,401.00 95,000.00 9.50 8.020
1,000,000.00 FUND AMERICA ENTERPRISE 7.750 02/01/03 1,005,434.00 100.54340 102.09100 1,020,910.00 15,476.00 77,500.00 7.71 7.590
1,000,000.00 GENERAL AMERICAN LIFE INS 7.625 01/15/24 879,446.00 87.94460 96.11900 961,190.00 81,744.00 76,250.00 8.67 7.930
1,000,000.00 ICI WILMINGTON INC. 8.750 05/01/01 1,016,778.00 101.67780 104.01500 1,040,150.00 23,372.00 87,500.00 8.61 8.410
2,000,000.00 J HANCOCK MUTUAL LIFE INS CO 7.375 02/15/24 1,871,371.00 93.56855 101.09300 2,021,860.00 150,489.00 147,500.00 7.88 7.300
1,000,000.00 JPM CAPITAL TRUST II 7.950 02/01/27 1,045,601.00 104.56010 99.57100 995,710.00 (49,891.00) 79,500.00 7.60 7.980
TOTAL FEDERAL AGENCY OBLIGATIONS
Page 49
Page 3 of 3
Book Current Annual Book
Par Value Security Coupon Maturity Book Cost Price Price Current Value Gain or (Loss) Income Yield YTM
ELECTED OFFICIALS' RETIREMENT PLAN
STATE OF ARIZONA
BOND PORTFOLIO
JUNE 30, 1999
INVESTMENTS OWNED
1,000,000.00 LEHMAN BROS HOLDINGS, INC. 8.750 05/15/02 1,018,577.00 101.85770 104.75600 1,047,560.00 28,983.00 87,500.00 8.59 8.350
1,000,000.00 LEHMAN BROTHERS HOLDINGS INC 8.500 05/01/07 1,045,915.00 104.59150 107.33400 1,073,340.00 27,425.00 85,000.00 8.13 7.920
1,000,000.00 LEHMAN BROTHERS HOLDINGS INC 8.800 03/01/15 1,116,024.35 111.60244 107.20000 1,072,000.00 (44,024.35) 88,000.00 7.89 8.210
3,000,000.00 LUMBERMANS MUTUAL CASUALTY CO 9.150 07/01/26 3,464,253.00 115.47510 108.41800 3,252,540.00 (211,713.00) 274,500.00 7.92 8.440
1,000,000.00 MERRILL LYNCH & COMPANY 8.000 06/01/07 1,000,000.00 100.00000 106.82500 1,068,250.00 68,250.00 80,000.00 8.00 7.490
2,000,000.00 NATIONWIDE MUTUAL INS CO 7.500 02/15/24 1,890,484.00 94.52420 95.31000 1,906,200.00 15,716.00 150,000.00 7.93 7.870
1,000,000.00 OHIO NATIONAL LIFE INSURANCE 8.500 05/15/26 997,958.00 99.79580 106.80100 1,068,010.00 70,052.00 85,000.00 8.52 7.960
1,000,000.00 PACIFIC GAS & ELECTRIC CO. 7.250 03/01/26 965,813.00 96.58130 94.56000 945,600.00 (20,213.00) 72,500.00 7.51 7.670
1,000,000.00 PAINE WEBBER GROUP INC. 7.000 03/01/00 999,738.00 99.97380 100.50700 1,005,070.00 5,332.00 70,000.00 7.00 6.960
1,000,000.00 PMI CAPITAL 8.309 02/01/27 1,032,311.00 103.23110 97.10000 971,000.00 (61,311.00) 83,090.00 8.05 8.560
1,000,000.00 POTOMAC CAPITAL INV CORP 7.100 03/09/00 1,000,000.00 100.00000 101.12600 1,011,260.00 11,260.00 71,000.00 7.10 7.020
1,000,000.00 PRINCIPAL MUTUAL LIFE INS CO 7.875 03/01/24 950,892.00 95.08920 105.10900 1,051,090.00 100,198.00 78,750.00 8.28 7.490
1,000,000.00 PRUDENTIAL INSUR CO OF AMERICA 8.300 07/01/25 979,236.00 97.92360 110.58000 1,105,800.00 126,564.00 83,000.00 8.48 7.510
1,500,000.00 SAFECO CAPITAL TRUST 8.072 07/15/37 1,510,018.00 100.66787 94.86100 1,422,915.00 (87,103.00) 121,080.00 8.02 8.510
1,000,000.00 SEARS ROEBUCK & CO. 9.375 11/01/11 1,000,000.00 100.00000 114.02200 1,140,220.00 140,220.00 93,750.00 9.38 8.220
1,000,000.00 SECURITY MUTUAL LIFE NEW YORK 9.375 12/15/16 1,119,394.00 111.93940 108.26000 1,082,600.00 (36,794.00) 93,750.00 8.38 8.660
1,000,000.00 SECURITY NATIONAL MORTAGE LOAN 7.870 08/25/30 1,000,000.00 100.00000 101.23800 1,012,380.00 12,380.00 78,700.00 7.87 7.770
1,000,000.00 SECURITY NAT'L MORTGAGE 99-1 8.353 09/25/30 1,000,000.00 100.00000 98.70100 987,010.00 (12,990.00) 83,530.00 8.35 8.460
1,000,000.00 SOUTHERN COMPANY CAPITAL TRUST 8.190 02/01/37 1,080,238.00 108.02380 100.71700 1,007,170.00 (73,068.00) 81,900.00 7.58 8.130
1,000,000.00 UNION CENTRAL LIFE 8.200 11/01/26 1,012,302.00 101.23020 101.80600 1,018,060.00 5,758.00 82,000.00 8.10 8.050
1,000,000.00 USF&G CAPITAL II, SERIES B 8.470 01/10/27 1,106,155.00 110.61550 98.80000 988,000.00 (118,155.00) 84,700.00 7.66 8.570
39,808,257.49 40,503,570.84 101.74666 40,855,899.48 352,328.64 3,290,758.48 8.1% 8.1%
76,305,651.69 BOND PORTFOLIO TOTALS 76,568,201.57 100.34408 80,057,442.99 3,489,241.42 6,373,366.92 8.3% 8.0%
TOTAL CORPORATE BONDS
Page 50
Date Interest Maturity Amount of Maturity
Acquired Description Rate Date Cost Interest Value
06/25/99 UBS FINANCIAL(DELAWARE) 5.200 07/02/99 998,988.89 1,011.11 1,000,000.00
06/28/99 ATLANTIS ONE FUNDING 5.320 07/06/99 998,817.78 1,182.22 1,000,000.00
TOTALS 1,997,806.67 2,193.33 2,000,000.00
ELECTED OFFICIALS' RETIREMENT PLAN
CORPORATE NOTES
STATE OF ARIZONA
INVESTMENTS OWNED
JUNE 30, 1999
Page 51
Page 1 of 3
Div Book Cost Market Annual Gain or (Loss)
Description Rate per Share Book Cost Price Market Value Income Amount
112,000 ABBOTT LABORATORIES 0.68 11.3534 1,271,578.00 45.3750 5,082,000.00 76,160.00 3,810,422.00
30,000 AIRBORNE FREIGHT CORP 0.16 33.4677 1,004,031.00 27.6875 830,625.00 4,800.00 (173,406.00)
9,000 ALASKA AIR GROUP 0.00 37.2946 335,651.40 41.7500 375,750.00 0.00 40,099.00
70,000 ALLSTATE CORPORATION 0.60 18.5027 1,295,186.67 35.8750 2,511,250.00 42,000.00 1,216,063.00
11,000 ALLTELL CORPORATION 1.22 65.8221 724,043.10 71.5000 786,500.00 13,420.00 62,457.00
40,000 AMERICA ONLINE 0.00 71.1966 2,847,864.80 110.0000 4,400,000.00 0.00 1,552,135.00
45,000 AMERICAN EXPRESS 0.92 104.8860 4,719,871.80 130.1250 5,855,625.00 41,400.00 1,135,753.00
50,625 AMERICAN INT'L GROUP 0.24 26.1613 1,324,417.50 117.2500 5,935,781.25 12,150.00 4,611,364.00
50,000 AMGEN 0.00 71.3453 3,567,263.00 60.8750 3,043,750.00 0.00 (523,513.00)
60,000 APPLIED MATERIALS 0.00 35.0450 2,102,700.00 73.8750 4,432,500.00 0.00 2,329,800.00
96,000 AT&T CORP 0.88 40.0044 3,840,425.00 55.8125 5,358,000.00 84,480.00 1,517,575.00
85,000 AUTOMATIC DATA PROCESSING 0.31 15.2034 1,292,286.88 44.0000 3,740,000.00 26,350.00 2,447,713.00
15,000 BANK OF AMERICA CORPORATION 1.80 68.3651 1,025,476.50 73.3125 1,099,687.50 27,000.00 74,211.00
15,000 BANK OF NEW YORK 0.56 38.5325 577,987.50 36.6875 550,312.50 8,400.00 (27,675.00)
80,644 BANK ONE CORPORATION 1.68 17.1132 1,380,076.39 59.5625 4,803,358.25 135,482.00 3,423,282.00
50,000 BESTFOODS 0.98 25.6036 1,280,180.35 49.5000 2,475,000.00 49,000.00 1,194,820.00
76,000 BIOGEN INC 0.00 47.3798 3,600,865.00 64.3125 4,887,750.00 0.00 1,286,885.00
76,000 BRISTOL-MYERS SQUIBB CO. 0.88 55.0266 4,182,019.00 70.4375 5,353,250.00 66,880.00 1,171,231.00
90,000 CABLEVISION SYSTEMS CORP 0.00 52.8729 4,758,562.70 70.0000 6,300,000.00 0.00 1,541,437.00
135,000 CISCO SYSTEMS 0.00 17.3431 2,341,312.00 64.4375 8,699,062.50 0.00 6,357,751.00
30,000 CITIGROUP, INC. 0.56 40.3663 1,210,990.00 47.5000 1,425,000.00 16,800.00 214,010.00
8,000 CMS ENERGY 1.32 48.5500 388,400.00 41.8750 335,000.00 10,560.00 (53,400.00)
15,000 COCA-COLA CO 0.64 78.2375 1,173,562.50 62.0000 930,000.00 9,600.00 (243,563.00)
190,000 COMCAST CORP. 0.00 32.4440 6,164,352.40 38.4375 7,303,125.00 0.00 1,138,773.00
102,000 COMPUWARE CORPORATION 0.00 34.9829 3,568,259.30 31.8125 3,244,875.00 0.00 (323,384.00)
43,000 CONTINENTAL AIRLINES 0.00 52.8285 2,271,625.30 37.6250 1,617,875.00 0.00 (653,750.00)
77,000 COSTCO COMPANIES, INC. 0.00 68.4431 5,270,121.65 80.0625 6,164,812.50 0.00 894,691.00
110,000 CVS CORP 0.24 43.8580 4,824,375.00 50.7500 5,582,500.00 26,400.00 758,125.00
40,000 DANA CORP 1.24 42.4872 1,699,487.00 46.0625 1,842,500.00 49,600.00 143,013.00
49,000 DAYTON HUDSON 0.40 57.4906 2,817,041.60 65.0000 3,185,000.00 19,600.00 367,958.00
6,000 DUKE ENERGY 2.20 60.0500 360,300.00 54.4375 326,625.00 13,200.00 (33,675.00)
37,000 ELECTRONIC DATA SYSTEMS 0.60 36.5074 1,350,772.32 56.6250 2,095,125.00 22,200.00 744,353.00
110,000 EMC CORP 0.00 23.0802 2,538,823.70 55.0000 6,050,000.00 0.00 3,511,176.00
50,000 EMERSON ELECTRIC 1.30 19.6862 984,308.33 62.9375 3,146,875.00 65,000.00 2,162,567.00
Shares
STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN
INVESTMENTS OWNED
COMMON STOCK PORTFOLIO
JUNE 30, 1999
Page 52
Page 2 of 3
Div Book Cost Market Annual Gain or (Loss)
Shares Description Rate per Share Book Cost Price Market Value Income Amount
STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN
INVESTMENTS OWNED
COMMON STOCK PORTFOLIO
JUNE 30, 1999
40,000 ENRON CORPORATION 1.00 36.1488 1,445,951.00 81.7500 3,270,000.00 40,000.00 1,824,049.00
33,000 EXPRESS SCRIPTS 0.00 30.4946 1,006,321.56 60.1875 1,986,187.50 0.00 979,866.00
15,000 FIRST DATA CORP 0.08 33.0336 495,504.00 48.9375 734,062.50 1,200.00 238,559.00
25,000 FIRST UNION CORP 1.88 51.9378 1,298,444.50 47.1250 1,178,125.00 47,000.00 (120,320.00)
25,000 FOX ENTERTAINMENT GRP, INC. A 0.00 27.1325 678,312.00 26.9375 673,437.50 0.00 (4,875.00)
35,000 FPL GROUP, INC. 2.08 45.5500 1,594,250.00 54.6250 1,911,875.00 72,800.00 317,625.00
23,000 FURNITURE BRANDS INTERNATIONAL 0.00 26.1001 600,302.70 27.8750 641,125.00 0.00 40,822.00
131,500 GENERAL NUTRITION COMPANIES 0.00 18.8784 2,482,512.15 23.3125 3,065,593.75 0.00 583,082.00
25,000 GENERAL TEL & ELECTRONICS 1.88 30.7673 769,182.69 75.5000 1,887,500.00 47,000.00 1,118,317.00
113,000 HOME DEPOT 0.12 15.2967 1,728,523.80 64.4375 7,281,437.50 13,560.00 5,552,914.00
40,000 ILLINOIS TOOL WORKS 0.60 26.9829 1,079,317.40 81.7500 3,270,000.00 24,000.00 2,190,683.00
66,000 IMS HEALTH, INC. 0.08 34.8303 2,298,798.90 31.2500 2,062,500.00 5,280.00 (236,299.00)
118,000 INTEL CORPORATION 0.12 43.3299 5,112,931.00 59.5000 7,021,000.00 14,160.00 1,908,069.00
70,000 INT'L BUSINESS MACHINES 0.48 28.7280 2,010,960.44 129.2500 9,047,500.00 33,600.00 7,036,540.00
45,000 JABIL CIRCUIT 0.00 45.7902 2,060,558.67 45.1250 2,030,625.00 0.00 (29,934.00)
11,000 JOHNSON CONTROLS 1.00 63.5470 699,017.00 69.3125 762,437.50 11,000.00 63,421.00
30,000 KIMBERLY-CLARK CORPORATION 1.04 22.1064 663,191.25 57.0000 1,710,000.00 31,200.00 1,046,809.00
18,000 LEXMARK INTERNATIONAL GROUP 0.00 50.2594 904,669.20 65.5000 1,179,000.00 0.00 274,331.00
12,500 LILLY ELI 0.92 68.5334 856,667.08 71.6250 895,312.50 11,500.00 38,645.00
17,000 LUCENT TECHNOLOGIES INC. 0.08 11.5072 195,622.04 67.4375 1,146,437.50 1,360.00 950,815.00
108,750 MBNA CORP 0.28 8.7407 950,549.11 30.6250 3,330,468.75 30,450.00 2,379,920.00
65,000 MCI WORLDCOM INC. 0.00 48.7656 3,169,765.75 86.0625 5,594,062.50 0.00 2,424,297.00
56,000 MERCK & CO. 1.08 16.3019 912,904.00 73.6250 4,123,000.00 60,480.00 3,210,096.00
110,000 MICROSOFT CORPORATION 0.00 78.7175 8,658,929.60 90.1875 9,920,625.00 0.00 1,261,695.00
28,000 MOBIL CORPORATION 2.28 55.9387 1,566,283.69 98.7500 2,765,000.00 63,840.00 1,198,716.00
98,000 NEWS CORPORATION 0.07 21.6933 2,125,945.40 35.3125 3,460,625.00 6,860.00 1,334,680.00
32,000 NOKIA CORPORATION 0.37 71.9184 2,301,387.60 91.5625 2,930,000.00 11,840.00 628,612.00
45,000 NORTEL NETWORKS CORP 0.30 63.0351 2,836,581.00 86.8125 3,906,562.50 13,500.00 1,069,982.00
17,000 NORTH FORK BANCORPORATION 0.60 21.3401 362,781.50 21.3750 363,375.00 10,200.00 594.00
220,000 OFFICEMAX INC. 0.00 13.7523 3,025,499.40 12.0000 2,640,000.00 0.00 (385,499.00)
30,000 PFIZER INC. 0.88 67.5500 2,026,500.00 109.0000 3,270,000.00 26,400.00 1,243,500.00
25,000 PITNEY BOWES, INC. 1.02 19.8415 496,037.50 64.2500 1,606,250.00 25,500.00 1,110,213.00
34,000 PPG INDUSTRIES, INC. 1.52 26.3256 895,069.84 59.0625 2,008,125.00 51,680.00 1,113,055.00
120,000 SAFEWAY INC 0.00 32.1511 3,858,130.50 49.5000 5,940,000.00 0.00 2,081,870.00
Page 53
Page 3 of 3
Div Book Cost Market Annual Gain or (Loss)
Shares Description Rate per Share Book Cost Price Market Value Income Amount
STATE OF ARIZONA
ELECTED OFFICIALS' RETIREMENT PLAN
INVESTMENTS OWNED
COMMON STOCK PORTFOLIO
JUNE 30, 1999
91,000 SAKS INCORPORATED 0.00 34.6328 3,151,583.75 28.8750 2,627,625.00 0.00 (523,959.00)
37,000 SBC COMMUNICATIONS INC. 0.98 53.8499 1,992,446.60 58.0000 2,146,000.00 36,260.00 153,553.00
100,000 SCHERING-PLOUGH CORP 0.52 17.0690 1,706,895.00 52.5000 5,250,000.00 52,000.00 3,543,105.00
32,000 SCHOLASTIC CORPORATION 0.00 43.0391 1,377,250.50 50.6250 1,620,000.00 0.00 242,750.00
11,000 SEALED AIR 0.00 62.6045 688,649.50 64.8750 713,625.00 0.00 24,976.00
25,000 SOLUTIA INC. 0.04 19.1280 478,200.50 21.3125 532,812.50 1,000.00 54,612.00
35,000 STARBUCKS CORP. 0.00 18.2993 640,475.25 37.5625 1,314,687.50 0.00 674,212.00
50,000 STERLING SOFTWARE 0.00 18.3991 919,953.87 26.4375 1,321,875.00 0.00 401,921.00
42,000 TEXACO 1.80 64.4522 2,706,991.50 62.3750 2,619,750.00 75,600.00 (87,242.00)
8,000 TEXAS UTILITIES 2.30 47.0139 376,111.20 41.4375 331,500.00 18,400.00 (44,611.00)
55,740 TYCO INTERNATIONAL LTD. 0.10 58.7076 3,272,360.12 94.7500 5,281,365.00 5,574.00 2,009,005.00
20,000 UNIVISION COMMUNICATIONS 0.00 36.7458 734,916.80 65.0000 1,300,000.00 0.00 565,083.00
40,000 VODAFONE AIRTOUCH PLC 1.04 103.8820 4,155,278.60 197.0000 7,880,000.00 41,600.00 3,724,721.00
117,000 WALGREEN COMPANY 0.13 4.4931 525,693.01 29.3750 3,436,875.00 15,210.00 2,911,182.00
39,000 WAL-MART STORES 0.20 49.8132 1,942,713.60 48.2500 1,881,750.00 7,800.00 (60,964.00)
38,000 WARNER-LAMBERT 0.80 69.0671 2,624,548.76 69.1250 2,626,750.00 30,400.00 2,201.00
66,000 XIRCOM, INC. 0.00 34.4725 2,275,185.00 30.0625 1,984,125.00 0.00 (291,060.00)
55,000 ZEBRA TECHNOLOGIES A 0.00 28.7395 1,580,670.05 38.4375 2,114,062.50 0.00 533,392.00
TOTALS 170,411,543.57 268,364,567.00 1,758,736.00 97,953,025.00
Page 54
Gain or Annual Book
Security Coupon Maturity Book Cost Current Value Loss Income Yield
BRIDGE FINANCIAL LOANS
BRIDGE FINANCIAL--15 E. MONROE 12.500 01/05/00 74,000.00 74,000.00 0.00 9,250.00 12.5%
BRIDGE FINANCIAL--69TH & BELL 12.750 10/07/99 100,000.00 100,000.00 0.00 12,750.00 12.8%
BRIDGE FINANCIAL--BEAVER CREEK G.C. 13.000 08/04/99 42,000.00 42,000.00 0.00 5,460.00 13.0%
BRIDGE FINANCIAL--CRYSTAL SPRINGS 12.750 08/17/99 65,350.00 65,350.00 0.00 8,332.13 12.8%
BRIDGE FINANCIAL--DESERT MIRAGE GC 11.500 09/09/00 78,000.00 78,000.00 0.00 8,970.00 11.5%
BRIDGE FINANCIAL--GRAND INN 12.500 09/25/00 100,000.00 100,000.00 0.00 12,500.00 12.5%
BRIDGE FINANCIAL--HAWTHORN SUITES 12.500 05/08/00 160,000.00 160,000.00 0.00 20,000.00 12.5%
BRIDGE FINANCIAL--HILTON HOTEL LAND 13.000 10/20/99 54,800.00 54,800.00 0.00 7,124.00 13.0%
BRIDGE FINANCIAL--LAKE PLEASANT 14.000 10/26/99 500,000.00 500,000.00 0.00 70,000.00 14.0%
BRIDGE FINANCIAL--PECOS & COOPER 12.875 10/05/99 64,000.00 64,000.00 0.00 8,240.00 12.9%
BRIDGE FINANCIAL--PIONEER INDUST. PARK 15.000 05/24/99 74,523.47 74,523.47 0.00 11,178.52 15.0%
BRIDGE FINANCIAL--SCOTTSDALE LINKS 11.500 03/21/01 77,000.00 77,000.00 0.00 8,855.00 11.5%
BRIDGE FINANCIAL--SHEA MEDICAL PLAZA 12.000 12/01/99 200,000.00 200,000.00 0.00 24,000.00 12.0%
BRIDGE FINANCIAL--STETSON HILLS 14.000 10/16/99 106,800.00 106,800.00 0.00 14,952.00 14.0%
BRIDGE FINANCIAL--SUNVALLEY II 13.125 09/17/99 114,200.00 114,200.00 0.00 14,988.75 13.1%
TOTAL BRIDGE FINANCIAL LOANS 1,810,673.47 1,810,673.47 0.00 236,600.40 13.1%
MISCELLANEOUS
PEBBLECREEK PROPERTIES L.P. 10.000 02/19/02 663,059.10 663,059.10 0.00 66,305.91 10.0%
TOTAL MISCELLANEOUS 663,059.10 663,059.10 0.00 66,305.91 10.0%
2,473,732.57 2,473,732.57 0.00 302,906.31 12.2%
L.L.C.
DESERT TROON,LLC 760,000.00 760,000.00 0.00 0.00 0.0%
PIVOTAL X,LLC 1,930,500.00 1,930,500.00 0.00 0.00 0.0%
TOTAL L.L.C. 2,690,500.00 2,690,500.00 0.00 0.00 0.0%
TOTAL OTHER INVESTMENTS 5,164,232.57 5,164,232.57 0.00 302,906.31 5.9%
STATE OF ARIZONA
TOTAL BEFORE L.L.C.
ELECTED OFFICIALS' RETIREMENT PLAN
OTHER INVESTMENTS PORTFOLIO
INVESTMENTS OWNED
JUNE 30, 1999
Page 55
Page 56
ACTUARIAL SECTION
ELECTED OFFICIALS’ RETIREMENT PLAN
EIGHTEENTH COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 1999
Actuarial Certification Statement
Actuarial Balance Sheet – All Employers
Summary of Valuation Methods and Assumptions
Solvency Test
Summary of Active Member Data
Summary of Inactive Member Data
Schedule of Retirants and Beneficiaries
Schedule of Experience Gain / (Loss)
Page 58
Page 59
GABRIEL, ROEDER, SMITH & COMPANY
Consultants & Actuaries
1000 Town Center · Suite 1000 · Southfield, Michigan 48075 · 248-799-9000 · 800-521-0498 · fax 248-799-9020
August 27, 1999
The Fund Manager
Arizona Elected Officials
Retirement System
1020 East Missouri
Phoenix, Arizona 85014
Attention: Jack Cross, Administrator
We hereby certify that the June 30, 1999 annual actuarial valuation of the Elected Officials' Retirement Plan,
determining the June 30, 1999 actuarial assets and liabilities and the relationship between actuarial and statutory
contribution rates, was made in accordance with generally recognized actuarial methods. Actuarial assets are
computed on a smoothed market basis which spreads differences between actual and assumed investment return
over a four year period.
The funding objective of the Retirement Plan is to establish and receive contributions, expressed as percents of
active member payroll, which will remain approximately level from year to year and will not have to be increased
for future generations of citizens.
The data, submitted by the Administrator, was checked for completeness and year to year consistency but was not
otherwise audited. The data was used by the actuary to generate all of the schedules in the actuarial section of the
CAFR, and the Schedule of Funding Progress in the Financial Section.
It is our opinion that the actuarial information contained in the valuation report is complete and accurate, being
based on risk experience assumptions which are in the aggregate related to the experience of the Plan and are our
best estimate of an anticipated future experience. A complete experience analysis is performed every 5 years, most
recently for the 5-year period ending June 30, 1998. The assumptions and methods conform to the parameters
established in Governmental Accounting Standards Board Statement 25. Actuarial gains (losses) are amortized as
level percents of payroll over an open 20 year period.
Respectfully submitted,
Sandra W. Rodwan/sig
Sandra W. Rodwan
Member, American Academy of Actuaries
SWR:md
Enclosure
Page 60
Elected Officials’ Retirement Plan
Actuarial Balance Sheet as of June 30, 1999
ACTUARIAL ASSETS
Accrued assets (accounting value)
Member accumulated contributions $ 21,505,771
Employer and benefit payment reserves 236,544,025
Funding Value Adjustment 65,769,105
Total accrued assets* $323,818,901
Prospective assets (computed value)
Member contributions 15,101,198
Employer normal costs 33,392,278
Employer unfunded actuarial accrued liability (56,236,792)
Total prospective assets (7,743,316)
Total Actuarial Assets $,316,075,585
* Includes $40,481,995 reserve for payment of ad hoc pension increases. The net funding value of accrued assets is
$283,336,906.
ACTUARIAL PRESENT VALUES (LIABILITY)
Pensions in payment status
Retired elected officials $84,012,536
Disabilities 6,059,233
Beneficiaries 17,081,614
Health insurance 2,428,440
Total benefit values $ 109,581,823
Prospective pension payments for future retirements
Attributable to service prior to July 1, 1999 117,152,251
Attributable to service after June 30, 1999 48,236,347
Total benefit values 165,388,598
Prospective refunds of member contributions 623,169
Reserve for ad hoc pension increases 40,481,995
Total Actuarial Present Values (Liability) $316,075,585
Page 61
SUMMARY OF PLAN PROVISIONS
See Note 1 in the Notes to Financial Statements.
SUMMARY OF VALUATION METHODS
The actuarial cost method used for the valuation was the individual entry age normal cost method.
Normal cost contributions were computed as follows:
The series of contributions, payable from date of employment, sufficient to accumulate at time of retirement the
discounted value of each member's projected pension and potential survivors pension was computed, using the
a