Carl Karl, a portfolio manager for the Alpine Trust Company, has been responsible since

$2020$ for the City of Alpine's Employee Retirement Plan, a municipal pension fund.

Alpine is a growing community, and city services and employee payrolls have expanded

in each of the past $10$ years. Contributions to the plan in fiscal $2025$ exceeded benefit

payments by a three$-$to$-$one ratio.

The plan board of trustees directed Karl five years ago to invest for total return ove

the long term. However, as trustees of this highly visible public fund, they cautioned

him that volatile or erratic results could cause them embarrassment. They also noted

a state statute that mandated that not more than $25\%$ of the plan's assets $($at cost$)$ be

invested in common stocks.

At the annual meeting of the trustees in November $2025,$ Karl presented the follow

ing portfolio and performance report to the board:

ALPINE EMPLOYEE RETIREMENT PLAN

Asset Mix as of $\frac{9}{30}\frac{?}{25}$

At Cost $($millions$)$

At Market $($millions$)$

Fixed$-$income assets:

Short$-$term securities

Long$-$term bonds and mortgages

Common stocks

$$4\mathrm{.}5$

$11\mathrm{.}0\%$

$$4\mathrm{.}5$

$11\mathrm{.}4\%$

$59\mathrm{.}5$

on stocks

$26\mathrm{.}5$

$10\mathrm{.}0$

$23\mathrm{.}5$

$\frac{29\mathrm{.}1}{100\mathrm{.}0}$