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HomeMy WebLinkAboutDocumentation_Pension_General_Tab 03_11/05/2018ww w . D a n a I n v e s t m e n t . c o m PO R T F O L I O A N D E C O N O M I C U P D A T E VI L L A G E O F T E Q U E S T A GE N E R A L E M P L O Y E E S ’ P E N S I O N F U N D AS O F S E P T E M B E R 3 0 , 2 0 1 8 ww w . D a n a I n v e s t m e n t . c o m 20700 Swenson Drive Suite 400 Waukesha, Wisconsin 53186 Co n t a c t Ta b l e o f C o n t e n t s Gr e g S . P e t e r s , C F A VP - C l i e n t S e r v i c e s a n d P o r t f o l i o S p e c i a l i s t (4 0 7 ) 7 1 8 - 1 1 1 5 Gr e g P @ D a n a I n v e s t m e n t . c o m 3 P o r t f o l i o P r o f i l e a n d C o m m i s s i o n s 4 P o r t f o l i o S u m m a r y 5 P o r t f o l i o F i x e d I n c o m e O v e r v i e w 6 M a r k e t U p d a t e s 22 D a n a L a r g e C a p E q u i t y S t r a t e g y U p d a t e 31 E c o n o m i c U p d a t e 42 P o r t f o l i o P u r c h a s e s , M a t u r i t i e s , a n d S a l e s 43 P o r t f o l i o G a i n s / L o s s e s o n S a l e s 40 P o r t f o l i o H o l d i n g s 43 D i s c l o s u r e s VI L L A G E O F T E Q U E S T A G E N E R A L EM P L O Y E E S ’ P E N S I O N F U N D ww w . D a n a I n v e s t m e n t . c o m PO R T F O L I O P R O F I L E A N D C O M M I S S I O N S Se e I m p o r t a n t D i s c l o s u r e I n f o r m a t i o n VI L L A G E O F T E Q U E S T A G E N E R A L EM P L O Y E E S ’ P E N S I O N F U N D In v e s t m e n t Ob j e c t i v e s : Ov e r t h r e e t o f i v e y e a r s t o t a l r e t u r n t o e x c e e d I n d e x a n d b e i n t h e t o p 4 0 % o f t h e c o m p a r a b l e m a n a g e r u n i v e r s e . Co m p a r a t i v e In d i c e s : Eq u i t y : S & P 5 0 0 I n d e x Fi x e d I n c o m e : B a r c l a y s I n t e r m e d i a t e A g g r e g a t e I n d e x In v e s t m e n t Re s t r i c t i o n s : Eq u i t y : N o t m o r e t h a n 5 % i n A D R s . C a s h a n d e q u i v a l e n t s n o t t o e x c e e d 2 0 % . Fi x e d I n c o m e : N o s i n g l e c o r p o r a t i o n s h a l l n o t e x c e e d 1 0 % p o r t f o l i o . A l l i n v e s t m e n t s r a t e d m i n i m u m i n v e s t m e n t g r a d e o r h i g h e r . Va l u e o f s i n g l e c o r p o r a t i o n ( e x c l u d e d g o v e r n m e n t o r a g e n c y ) n o t t o e x c e e d 1 0 % o f p o r t f o l i o . Ac c o u n t P r o f i l e Br o k e r N a m e Sh a r e s Co m m R a t e Ne t A m o u n t C o m m i s s i o n Ca p i t a l I n s t i t u t i o n a l S e r v i c e s 6, 3 5 5 0. 0 1 5 $ 5 7 2 , 5 3 3 . 7 5 $ 9 5 . 3 5 To t a l 6, 3 5 5 0. 0 1 5 $ 5 7 2 , 5 3 3 . 7 5 $ 9 5 . 3 5 Br o k e r C o m m i s s i o n s R e p o r t 7 / 0 1 / 2 0 1 8 t o 9 / 3 0 / 2 0 1 8 3 ww w . D a n a I n v e s t m e n t . c o m PORTFOLIO SUMMARY In c e p t i o n D a t e s : 1 0 / 0 3 / 2 0 0 5 ; * B l e n d e d B e n c h m ar k 1 0 / 2 0 0 5 t o 8 / 2 0 1 2 B a r c l a y s I n t e r m e d i a t e G o v t / C r e d i t I n d e x a n d 9 / 2 0 1 2 t h r o u g h c u rr e n t p e r i o d B a r c l a y s I n t e r m e d i a t e A g g r e g a t e I n d e x . Se e I m p o r t a n t D i s c l o s u r e I n f o r m a t i o n VI L L A G E O F T E Q U E S T A G E N E R A L EM P L O Y E E S ’ P E N S I O N F U N D Ac c o u n t A c t i v i t y 9 / 2 9 / 2 0 1 7 t o 9 / 2 8 / 2 0 1 8 Po r t f o l i o V a l u e o n 0 9 / 2 9 / 2 0 1 7 $2 , 1 9 1 , 5 7 7 . 1 6 Co n t r i b u t i o n s / W i t h d r a w a l s $1 4 1 , 3 0 2 . 6 2 In v e s t m e n t I n c o m e $5 9 , 4 4 3 . 2 3 Un r e a l i z e d G a i n / L o s s $1 2 7 , 5 6 1 . 0 0 Re a l i z e d G a i n / L o s s ($ 3 , 5 6 1 . 9 8 ) Ch a n g e i n A c c r u e d I n c o m e ($ 1 4 8 . 9 8 ) Po r t f o l i o V a l u e o n 0 9 / 2 8 / 2 0 1 8 $2 , 5 1 6 , 1 7 3 . 0 5 To t a l G a i n $1 8 3 , 2 9 3 . 2 7 Po r t f o l i o A l l o c a t i o n Su m m a r y a s o f 9 / 2 8 / 2 0 1 8 Ma r k e t V a l u e % Assets Income Yield Sh o r t T e r m I n v e s t m e n t s 23 , 1 6 1 .9 343 1.48 Tr e a s u r y B o n d s 21 7 , 8 3 3 8.6 4,838 2.23 Ag e n c y B o n d s 67 , 2 1 4 2.7 0 .00 Mo r t g a g e B o n d s 15 3 , 0 8 9 6.1 5,352 3.51 Co r p o r a t e B o n d s 36 7 , 0 3 7 14.5 15,901 4.37 Ta x a b l e B o n d F u n d s 18 3 , 9 2 7 7.3 4,548 2.47 Do m e s t i c E q u i t y S t r a t e g y 1, 5 0 3 , 9 1 1 59.9 33,249 2.21 To t a l P o r t f o l i o 2, 5 1 6 , 1 7 3 1 0 0 . 0 6 4 , 2 3 1 2 . 5 6 Pe r f o r m a n c e G r o s s o f F e e s Un a n n u a l i z e d Av e r a g e A n n u a l Th r o u g h 9 / 2 8 / 2 0 1 8 QT D Fi s c a l ' 1 8 2y r 5y r In c e p t i o n 10 8 7 c c - T e q u e s t a G e n e r a l E m p l o y e e s P e n s i o n Fu n d - L C 5. 6 8 14 . 7 4 19 . 3 2 13 . 1 9 9. 3 4 S& P 5 0 0 I n d e x 7. 7 1 1 7 . 9 1 1 8 . 2 6 1 3 . 9 5 9. 2 7 10 8 7 c b - T e q u e s t a G e n e r a l E m p l o y e e s P e n s i o n Fu n d - F i x e d I n c o m e 0. 2 0 -0 . 8 3 -0 . 2 2 1. 8 6 3. 3 7 0. 1 1 - 0 . 9 3 - 0 . 3 4 1 . 7 0 3 . 4 7 * Ba r c l a y s I n t e r m e d i a t e A g g r e g a t e 4 ww w . D a n a I n v e s t m e n t . c o m PO R T F O L I O F I X E D I N C O M E O V E R V I E W Se e I m p o r t a n t D i s c l o s u r e I n f o r m a t i o n VI L L A G E O F T E Q U E S T A G E N E R A L EM P L O Y E E S ’ P E N S I O N F U N D Cr e d i t Q u a l i t y Cu r r e n t A n n u a l i z e d Y i e l d to M a t u r i t y @ M a r k e t Av e r a g e C o u p o n E f f e c t i v e D u r a t i o n Vi l l a g e o f T e q u e t s a G e n e r a l E m p l o y e e s ' P e n s i o n F u n d Aa 2 3. 3 9 % 3. 2 9 % 4.00 Ba r c l a y s I n t e r m e d i a t e A g g r e g a t e I n d e x Aa 1 3. 3 3 % 2. 9 2 % 4.30 Bo n d C h a r a c t e r i s t i c s a s o f 9 / 3 0 / 2 0 1 8 Se c t o r C o m p a r i s o n a s o f 9 / 3 0 / 2 0 1 8 Ca s h T r e a s u r i e s A g e n c i e s I n d u s t r i a l s F i n a n c i a l s U t i l i t i e s N o n - C o r p M B S 10 8 7 C B 0. 7 1 2 1 . 8 2 6 . 7 3 1 7 . 8 1 1 8 . 9 4 0 . 0 0 0 . 0 0 3 3 . 9 9 Ba r c I N T E R A G G I N D E X 0. 0 0 3 9 . 0 4 1 . 5 2 1 1 . 2 5 8 . 2 1 0 . 9 6 4 . 1 5 3 4 . 8 7 051015202530354045 % H e l d 5 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m FI X E D I N C O M E M A R K E T 3 R D Q U A R T E R 2 0 1 8 Co n t i n u e d S t r e n g t h At t h e s t a r t o f t h e y e a r t h e m a r k e t t h o u g h t t h e r e w a s o n l y a 2 0 % pr o b a b i l i t y t h a t , b y n o w , t h e F e d e r a l R e s e r v e ( F e d ) w o u l d h a v e a l r e a d y ra i s e d r a t e s t h r e e t i m e s t h i s y e a r . E v e n a t t h e s t a r t o f J u l y , m a r k e t s th o u g h t t h e r e w a s a 4 0 % c h a n c e t h a t t h e F e d w o u l d n ’ t i n c r e a s e r a t e s ag a i n i n t h e t h i r d q u a r t e r . H o w e v e r , b y t h e t i m e t h e F e d r a i s e d r a t e s l a s t we e k , b o n d m a r k e t s h a d a l r e a d y f u l l y p r i c e d i n t h e i n c r e a s e , w i t h Tr e a s u r y y i e l d s d r i f t i n g h i g h e r o v e r t h e q u a r t e r . Ov e r a l l , t h e U . S . e c o n o m i c d a t a c o n t i n u e d t o r e m a i n s t r o n g o v e r t h e th i r d q u a r t e r a n d w e e x p e c t t h e c u r r e n t l e v e l o f g r o w t h t o c o n t i n u e f o r th e n e a r t e r m . I n t h i s e n v i r o n m e n t , w e e x p e c t l o n g e r t e r m i n t e r e s t r a t e s to m o v e m a r g i n a l l y h i g h e r a s T r e a s u r y s u p p l y i n c r e a s e s a n d d e v e l o p e d - ma r k e t c e n t r a l b a n k s b r o a d l y s h i f t t o w a r d a l e s s a c c o m m o d a t i v e s t a n c e on m o n e t a r y p o l i c y . T h e e c o n o m y i s c r e a t i n g n e w j o b s a t a n i m p r e s s i v e ra t e , a n d w a g e s h a v e b e g u n t o s h i f t h i g h e r ( c h a r t s 1 & 2 ) s u p p o r t i n g re t a i l s a l e s g r o w t h o f o v e r 7 % y e a r o n y e a r . Co n s u m e r c o n f i d e n c e h i t i t s h i g h e s t l e v e l s i n c e 2 0 0 0 , w h i l e t h e m o n t h l y av e r a g e o f i n i t i a l j o b l e s s c l a i m s f e l l t o t h e l o w e s t l e v e l s i n c e 1 9 6 9 . A l s o , th e N a t i o n a l F e d e r a t i o n o f I n d e p e n d e n t B u s i n e s s ’ s s u r v e y s h o w e d t h a t sm a l l b u s i n e s s e s w e r e t h e m o s t o p t i m i s t i c t h e y ’ v e b e e n s i n c e t h e s u r v e y be g a n i n 1 9 7 4 . Gi v e n t h e s t r e n g t h o f t h e U . S . e c o n o m y , t h e F e d e r a l O p e n M a r k e t Co m m i t t e e ( F O M C ) , r a i s e d t h e b e n c h m a r k f e d f u n d s r a t e b y a q u a r t e r - pe r c e n t a g e p o i n t , t o a r a n g e o f 2 % - 2 . 2 5 % , a t i t s m e e t i n g o n S e p t e m b e r 26 , 2 0 1 8 . T h e f e d f u n d s r a t e h i k e m a r k e d t h e e i g h t h r a t e i n c r e a s e s i n c e De c e m b e r 2 0 1 5 a n d t h e t h i r d r a t e h i k e t h i s y e a r . T h e U . S . e c o n o m y h a s be e n c o m i n g i n s t r o n g e r t h a n e x p e c t e d t h i s y e a r , ” s a i d F e d c h a i r m a n Je r o m e P o w e l l a t a p r e s s c o n f e r e n c e f o l l o w i n g t h e m e e t i n g . P o w e l l c i t e d hi g h b u s i n e s s a n d c o n s u m e r c o n f i d e n c e r e a d i n g s , a s w e l l a s t h e t a x c u t s im p l e m e n t e d i n D e c e m b e r 2 0 1 7 . N o t a b l y , t h e s t a t e m e n t r e l e a s e d a t t h e en d o f t h e m e e t i n g d i f f e r e d f r o m t h e p r e v i o u s s t a t e m e n t i n o n e im p o r t a n t r e s p e c t : i t r e m o v e d r e f e r e n c e t o “ a c c o m m o d a t i v e ” F e d p o l i c y . Th i s l i k e l y m e a n s r a t e s a r e g e t t i n g c l o s e t o t h e “ n e u t r a l ” l e v e l . T h e de l e t i o n , h o w e v e r , d o e s n o t i m p l y t h a t t h e f u t u r e r a t e p a t h h a s c h a n g e d . Gi v e n t h e c o n t i n u e d s t r e n g t h , w e b e l i e v e t h e r e r e m a i n s a s t r o n g po s s i b i l i t y f o r f u r t h e r i n c r e a s e s i n t h e f o u r t h q u a r t e r o f 2 0 1 8 a s w e l l a s in t o 2 0 1 9 ( c h a r t 3 ) . So u r c e : B l o o m b e r g F i n a n c e L . P . Ch a r t 1 - W a g e s h a v e r i s e n t o th e i r h i g h e s t l e v e l s s i n c e 2 0 0 9 Ch a r t 2 - T h e S e p t e m b e r em p l o y m e n t r e p o r t s h o w e d jo b g a i n s o f 2 0 1 , 0 0 0 b r i n g i n g th e t o t a l j o b s c r e a t e d s i n c e 20 1 0 t o a r e m a r k a b l e 1 8 mi l l i o n n e w j o b s a n d a n un e m p l o y m e n t r a t e b e l o w 4 % . 6 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m FI X E D I N C O M E M A R K E T 3 RD QUARTER 2018 Co n t i n u e d S t r e n g t h Mu c h d e p e n d s , o f c o u r s e , o n t h e t r a j e c t o r y o f i n f l a t i o n . I f i n f l a t i o n r e m a i n s a r o u n d 2 % , t h e F e d i s l i k e l y t o p a u s e i n m i d - 2 0 1 9 a n d a s s e s s h o w t h e e c o n o m yh a s re s p o n d e d t o t h e r i s e i n r a t e s s i n c e l a t e 2 0 1 5 . B u t i n t h e p o s t - m e e t i n g p r e s s c on f e r e n c e o n S e p t e m b e r 2 6 , P o w e l l t o o k p a i n s t o p o i n t o u t t h a t i f i n f l a t i o n su r p r i s e s t o t h e u p s i d e i n t h e m o n t h s a h e a d , t h e c e n t r a l b a n k i s p o i s e d t o “ m o v e f a s t e r ” o n r a t e s . W i t h t he U . S . l a b o r m a r k e t r u n n i n g a t f u l l s t e a m , a n d w a ges un d e r g o i n g a l o n g - a w a i t e d a c c e l e r a t i o n , p o l i c y m ak e r s w i l l b e w a t c h i n g t h e e m p l o y m e n t d a t a c a r e f u l l y f o r a n y s i g n s t h a t i n f l a t i o n w i l l a l t e r t h e i r p lans. As t h e b u s i n e s s c y c l e p r o g r e s s e s , f i x e d i n c o m e i n v e s t o r s c a n b e n e f i t f r o m t he t i g h t e n i n g i n F e d p o l i c y . H o w e v e r , u n t i l t h e r e a r e s i g n s o f s l o w e r g r o w t ho rr i s i n g ri s k a v e r s i o n , w e c o n t i n u e t o s u g g e s t t h a t i n v e s t or s l i m i t t h e a v e r a g e d u r a t i o n i n t h e i r p o r t f o l i o s b y i n v e s t i n g i n r e l a t i v e l y s h o r t d u r a t i o n b o n d s t hat are high in cr e d i t q u a l i t y a s a m e a n s t o m i t i g a t e t h e i m p a c t o f r i s i n g i n t e r e s t r a t e s . I n ve s t m e n t s w i t h i n t h e t w o t o f i v e y e a r p ar t o f t h e y i e l d c u r v e l o o k t o o f f e r t h em o s t va l u e i n t e r m s o f r i s k v s . r e t u r n . F o r e x a m p l e , w i t h s h o r t - t e r m T r e a s u r y y i e l ds m o v i n g h i g h e r , t h e r e i s l e s s n e e d t o s t r e t c h f o r y i e l d . T o d a y i n v e s t o r s can earn hi g h e r y i e l d s t h a n i n t h e r e c e n t p a s t , w i t h r e l a t i v e l y l o w i n t e r e s t r a t e a n d c r e d i t r i s k s . So u r c e : B l o o m b e r g F i n a n c e L . P . Ch a r t 3 – F O M C D o t P l o t 7 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m So u r c e : B l o o m b e r g F i n a n c e L . P . Lo n g e r m a t u r i t y c o r p o r a t e b o n d s - e s p e c i a l l y l o w e r r a t e d in v e s t m e n t g r a d e c r e d i t , w e r e b e s t p e r f o r m e r s d u r i n g t h e q u a r t e r . Ge n e r a l l y c o r p o r a t e b o n d s w e r e p o s i t i v e p e r f o r m e r s d u e t o sp r e a d s t i g h t e n i n g d e s p i t e r i s e in y i e l d s . G o v e r n m e n t b o n d s , in c l u d i n g T r e a s u r i e s a n d A g e n c i e s , w e r e n e g a t i v e p e r f o r m e r s a s th e y i e l d s r o s e . D a n a p o r t f o l i o s a r e s t r a t e g i c a l l y p o s i t i o n e d w i t h a hi g h e r a l l o c a t i o n t o c o r p o r a t e b o n d s a n d o v e r a l l l o w e r d u r a t i o n – a c o m b i n a t i o n t h a t h e l p e d o u t p e r f o r m t h e b e n c h m a r k f o r t h e qu a r t e r a n d y e a r - t o - d a t e . Q3 2 0 1 8 O b s e r v a t i o n s  Th e y i e l d s c u r v e e x p e r i e n c e d n e a r l y a p a r a l l e l s h i f t u p by 2 0 t o 3 6 b a s i s p o i n t s  T- b i l l s 1 , 3 , 6 , a n d 1 2 - m o n t h s r o s e 3 6 , 2 8 , 2 6 , a n d 2 5 ba s i s p o i n t s r e s p e c t i v e l y  2- y e a r , 3 - y e a r T r e a s u r i e s r o s e 2 9 a n d 2 6 b a s i s p o i n t s re s p e c t i v e l y  10 - y e a r , 3 0 - y e a r b o n d s r o s e 2 0 , a n d 2 2 b a s i s p o i n t s re s p e c t i v e l y  Th e 1 0 Y e a r U . S . T r e a s u r y N o t e y i e l d t r a d e d i n a r a n g e o f 2. 8 1 % t o 3 . 1 0 % , e n d i n g t h e q u a r t e r a t 3 . 0 6 % We c o n t i n u e t o s u g g e s t t h a t i n v e s t o r s l i m i t t h e a v e r a g e d u r a t i o n in t h e i r p o r t f o l i o s b y i n v e s t i n g i n r e l a t i v e l y s h o r t d u r a t i o n b o n d s th a t a r e h i g h i n c r e d i t q u a l i t y a s a m e a n s t o m i t i g a t e t h e i m p a c t o f ri s i n g i n t e r e s t r a t e s . I n v e s t o r s n e e d t o m a i n t a i n a w e l l - d i v e r s i f i e d co r e f i x e d i n c o m e p o r t f o l i o i n a n a c t i v e m a n n e r t o c o n t i n u e co m p o u n d i n g i n t e r e s t i n c o m e n o m a t t e r w h a t p a t h i n t e r e s t r a t e s ma y f o l l o w . E v e n i n a r i s i n g - r a t e e n v i r o n m e n t , f i x e d i n c o m e in v e s t m e n t s p r o v i d e i m p o r t a n t b e n e f i t s , i n c l u d i n g i n c o m e , di v e r s i f i c a t i o n , l o w e r v o l a t i l i t y a n d t h e p r e d i c t a b i l i t y o f a n i n c o m e st r e a m . FI X E D I N C O M E M A R K E T 3 RD QUARTER 2018 Bl o o m b e r g B a r c l a y s U . S . B o n d I n d i c e s Re t u r n s T h r o u g h S e p t e m b e r 3 0 , 2 0 1 8 0.0 2 % 0.0 6 % -0 . 1 2 % 0. 1 1 % 0.21%-0.11%0.80% -1 . 2 2 % -1 . 3 7 % -0 . 9 2 % -0 . 9 3 % -0.96%-1.18%-0.64% -1 . 5 0 % -1 . 2 5 % -1 . 0 0 % -0 . 7 5 % -0 . 5 0 % -0 . 2 5 % 0. 0 0 % 0. 2 5 % 0. 5 0 % 0. 7 5 % 1. 0 0 % Ag g r e g a t e In d e x Go v e r n m e n t / Cr e d i t I n d e x Mo r t g a g e Ba c k e d S e c . In d e x In t e r m e d i a t e Ag g r e g a t e In d e x Intermediate Gov't/Credit IndexIntermediateGovernment IndexIntermediateCorporate Index Q3 2 0 1 8 La s t 1 2 M o n t h s 1 -30 Y e a r D u r a t i o n 1 -10Year Duration 8 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m CO R P O R A T E B O N D S P R E A D S A N D Y I E L D S Co r p o r a t e B o n d S p r e a d s b y Q u a l i t y a s o f S e p t e m b e r 3 0 , 2 0 1 8 050100150200250300350 050 10 0 15 0 20 0 25 0 30 0 35 0 J u n ' 1 0 S e p ' 1 0 D e c ' 1 0 M a r ' 1 1 J u n ' 1 1 S e p ' 1 1 D e c ' 1 1 M a r ' 1 2 J u n ' 1 2 S e p ' 1 2 D e c ' 1 2 M a r ' 1 3 J u n ' 1 3 S e p ' 1 3 D e c ' 1 3 M a r ' 1 4 J u n ' 1 4 S e p ' 1 4 D e c ' 1 4 M a r ' 1 5 J u n ' 1 5 S e p ' 1 5 D e c ' 1 5 M a r ' 1 6 J u n ' 1 6 S e p ' 1 6 D e c ' 1 6 M a r ' 1 7 J u n ' 1 7 S e p ' 1 7 Dec '17 Mar '18 Jun '18 Sep '18 AA A BB B Co r p o r a t e B o n d Y i e l d s b y Q u a l i t y a s o f S e p t e m b e r 3 0 , 2 0 1 8 0.00.51.01.52.02.53.03.54.04.55.0 0. 0 0. 5 1. 0 1. 5 2. 0 2. 5 3. 0 3. 5 4. 0 4. 5 5. 0 J u n ' 1 0 S e p ' 1 0 D e c ' 1 0 M a r ' 1 1 J u n ' 1 1 S e p ' 1 1 D e c ' 1 1 M a r ' 1 2 J u n ' 1 2 S e p ' 1 2 D e c ' 1 2 M a r ' 1 3 J u n ' 1 3 S e p ' 1 3 D e c ' 1 3 M a r ' 1 4 J u n ' 1 4 S e p ' 1 4 D e c ' 1 4 M a r ' 1 5 J u n ' 1 5 S e p ' 1 5 D e c ' 1 5 M a r ' 1 6 J u n ' 1 6 S e p ' 1 6 D e c ' 1 6 M a r ' 1 7 J u n ' 1 7 S e p ' 1 7 Dec '17 Mar '18 Jun '18 Sep '18 AA A BB B So u r c e : B l o o m b e r g F i n a n c e L . P . 9 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m 5 Y e a r C o r p o r a t e B o n d S p r e a d s v s . 5 Ye a r a n d 1 0 Y e a r T r e a s u r y Y i e l d s SP R E A D S A N D Y I E L D S – L A S T 1 2 M O N T H S  Co r p o r a t e b o n d s p r e a d s t i g h t e n e d s i n c e t h e e n d o f 2 nd qu a r t e r . T h e y a r e s t i l l w i d e r t h a n t h e h i s t o r i c a l l o w s a t t h e e n d o f 2 0 1 7  5 y e a r a n d 1 0 y e a r T r e a s u r y y i e l d s c o n t i n u e t o co n v e r g e a s t h e b e a r f l a t t e n i n g c o n t i n u e s So u r c e : B l o o m b e r g F i n a n c e L . P . 10 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m So u r c e : B l o o m b e r g F i n a n c e L . P . 10 Y e a r T r e a s u r y N o m i n a l a n d R e a l Y i e l d s (O c t o b e r 2 0 0 8 – S e p t e m b e r 2 0 1 8 ) REAL AND NOMINAL YIELDS No m i n a l Y i e l d : 3 . 0 6 % , R e a l Y i e l d : 0 . 6 6 % , E x p e c t e d I n f l a t i o n : 2 . 4 0 % 11 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m GLOBAL MONETARY POLICY So u r c e : B l o o m b e r g , F e d e r a l R e s e r v e , J P M o r g a n A M  * U S F e d e r a l R e s e r v e ( F e d ) , B a n k o f J a p a n ( B o J ) , E ur o p e a n C e n t r a l B a n k ( E C B ) , B a n k o f E n g l a n d ( B o E )  ** D e v e l o p e d M a r k e t s : U S , U K , E u r o z o n e , C a n a d a , A u s t r a li a , J a p a n , S w i t z e r l a n d , N o r w a y , S w e d e n , a n d D e n m a r k 12 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m EQUITY MARKET INDICES Eq u i t y M a r k e t U p d a t e  U. S . e q u i t y m a r k e t s w e r e p o s i t i v e f o r t h e t h i r d q u a r t e r 2 0 1 8 ( Q 3 ) w i t h t h e S& P 5 0 0 I n d e x h a v i n g i t s b e s t q u a r te r l y r e t u r n s i n c e t h e e n d o f 2 0 1 3  St y l e p e r f o r m a n c e f a v o r e d g r o w t h a n d l a r g e c a p w i t h v a l u e c o n t i n u i n g to l a g o n a r e l a t i v e b a s i s  Th e R u s s e l l 1 0 0 0 G r o w t h I n d e x c o n t i n ue d t o o u t p e r f o r m t h e R u s s e l l 10 0 0 V a l u e I n d e x f o r Q 3 b y o v e r 3 0 0 b a s i s p o i n t s  Do m e s t i c s m a l l c a p s w e r e p o s i t i v e b u t t r a i l e d l a r g e c a p s f o r t h e q u a r t e r • Sm a l l c a p s s l i g h t l y o u t p e r f o r m e d l a rg e c a p s o n a y e a r - t o - d a t e ( Y T D ) ba s i s  Fo r e i g n s t o c k s u n d e r p e r f o r m e d U . S . st o c k s w i t h e m e r g i n g m a r k e t s b e i n g ha r d e s t h i t b y a s t r o n g e r U . S . D o l l a r ( U S D ) , r i s i n g t r a d e t e n s i o n s , a n d ri s i n g U . S . i n t e r e s t r a t e s S& P 5 0 0 I n d e x S e c t o r P e r f o r m a n c e  Al l I n d e x s e c t o r s w e r e p o s i t i v e f o r t h e t h i r d q u a r t e r , t h o u g h d i s p e r s i o n wa s h i g h  Af t e r 4 c o n s e c u t i v e q u a r t e r s o f t r a i l i ng t h e I n d e x , H e a l t h C a r e w a s t h e be s t p e r f o r m i n g s e c t o r i n Q 3 a n d is n o w o u t p e r f o r m i n g t h e I n d e x o n a YT D b a s i s  In f o r m a t i o n T e c h n o l o g y ( I T ) a n d C o n s um e r D i s c r e t i o n a r y ( C D ) c o n t i n u e d to o u t p e r f o r m t h e I n d e x a n d r e m a i n e d the best performing sectors YTD  In d u s t r i a l s o u t p e r f o r m e d i n Q 3 , h o w e v e r t h e s e c t o r t r a i l s t h e I n d e x Y T D  En e r g y , R e a l E s t a t e , a n d M a t e r i a l s w e r e only slightly positive for Q3 and ha v e u n d e r p e r f o r m e d t h e I n d e x  Ma n y o f t h e I n d e x c h a n g e s t h a t o c c ur r e d d u r i n g Q 3 i m p a c t e d t h e I T , C D , an d t h e n e w l y c r e a t e d C o m m u n i c a t i o n S e r v i c e s s e c t o r s So u r c e : F a c t S e t D a t a S y s t e m s In d e x R e t u r n s T h r o u g h S e p t e m b e r 3 0 , 2 0 1 8 -7 . 3 9 % -0. 9 8 % 3. 9 2 % 7. 4 9 % 10 . 4 9 % 10 . 5 6 % 10 . 5 7 % 11 . 5 1 % 17 . 0 9 % 17 . 4 8 % -0 . 9 5 % 1. 4 2 %5. 7 0 % 3. 8 6 % 7. 4 2 % 7. 7 1 % 7. 1 2 % 3. 5 8 % 9. 1 7 % 7. 4 1 % MS C I E M ( E m e r g i n g M a r k e t s ) MS C I E A F E Ru s s e l l 1 0 0 0 V a l u e S& P M i d C a p 4 0 0 Ru s s e l l 1 0 0 0 S& P 5 0 0 Ru s s e l l 3 0 0 0 Ru s s e l l 2 0 0 0 Ru s s e l l 1 0 0 0 G r o w t h NA S D A Q C o m p o s i t e I n d e x QT D 9 / 3 0 / 1 8 YT D 9 / 3 0 / 1 8 S& P 5 0 0 I n d e x S e c t o r R e t u r n s T h r o u g h S e p t e m b e r 3 0 , 2 0 1 8 10 . 5 6 % -3. 7 3 % -2. 7 3 % 0. 0 6 % 1. 8 3 % 2. 7 2 % 4. 7 8 % 7. 4 0 % 7. 4 9 % 16.67%21.82 %25.05% 7. 7 1 % 5. 7 0 % 0. 3 6 % 4. 3 6 % 0. 7 3 %2. 3 9 % 9. 9 6 % 1. 0 6 % 0. 6 1 % 14.58 % 9. 3 4 %12.41% S& P 5 0 0 Co n s S t p l Ma t e r i a l s Fi n a n c i a l s Re a l E s t a t e Ut i l i t i e s In d u s t r i a l s Co m m u n i c a t i o n En e r g y He a l t h C a r e Co n s D i s c In f o T e c h QT D 9 / 3 0 / 1 8 YTD 9/30/18 13 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m To t a l R e t u r n ( T R ) 9 / 3 0 / 2 0 1 8 Q 3 2 0 1 8 Y e a r - t o - D a t e S& P 5 0 0 I n d e x 7. 7 1 % 1 0 . 5 6 % Ru s s e l l 3 0 0 0 I n d e x 7. 1 2 % 1 0 . 5 7 % S& P M i d c a p 4 0 0 I n d e x 3 . 8 6 % 7 . 4 9 % Ru s s e l l 2 0 0 0 I n d e x 3. 5 8 % 1 1 . 5 1 %  Eq u i t i e s g e n e r a t e d s o l i d g a i n s f o r t h e 3r d q u a r t e r 2 0 1 8 ( Q 3 ) o u t p e r f o r m i n g m o s t as s e t c l a s s e s Gr o w t h C o m p a n i e s C o n t i n u e t o D o m i n a t e V a l u e C o m p a n i e s  Th e R u s s e l l 1 0 0 0 G r o w t h I n d e x w i d e n e d i t s to t a l r e t u r n l e a d o v e r t h e R u s s e l l 10 0 0 V a l u e I n d e x f o r Q 3 a n d n o w l e a d s b y o v e r 1 3 % o n a y e a r - t o - d a t e ( Y T D ) ba s i s  Th i s c o n t i n u e s a l o n g e r t e r m t r e n d , a s t h e R u s s e l l 1 0 0 0 G r o w t h I n d e x h a s ou t p e r f o r m e d t h e R u s s e l l 1 0 0 0 V a l u e I n d e x b y a b o u t 3 0 % s i n c e t h e b e g i n n i n g of 2 0 1 7 Si n c e To t a l R e t u r n ( T R ) 9 / 3 0 / 2 0 1 8 Q 3 2 0 1 8 Y e a r - t o - D a t e 1 2 / 3 1 / 2 0 1 6 Ru s s e l l 1 0 0 0 G r o w t h I n d e x 9 . 1 7 % 1 7 . 0 9 % 5 2 . 4 6 % Ru s s e l l 1 0 0 0 V a l u e I n d e x 5 . 7 0 % 3 . 9 2 % 1 8 . 1 2 % S& P 5 0 0 I n d e x 7. 7 1 % 1 0 . 5 6 % 3 4 . 7 0 % Na r r o w L e a d e r s h i p W i t h i n L a r g e C a p S t o c k s  Am a z o n . c o m , I n c . ( A M Z N ) , A p p l e I n c . ( AA P L ) , a n d M i c r o s o f t C o r p o r a t i o n ( M S F T ) ac c o u n t e d f o r r o u g h l y 2 5 % ‡ of t h e S & P 5 0 0 I n d e x t o t a l r e t u r n f o r Q 3  5 m e g a - c a p t e c h n o l o g y c o m p a n ie s , w h i c h r e p r e s e n t a b o u t 1 3 % ‡ of t h e I n d e x ma r k e t c a p , a c c o u n t e d f o r a b o u t 4 4 % of t h e S & P 5 0 0 I n d e x t o t a l r e t u r n Y T D  7 o f t h e t o p 1 0 c o n t r i b u t o r s t o t h e Q 3 S & P 5 0 0 I n d e x t o t a l r e t u r n c a m e f r o m j u s t 2 s e c t o r s – I n f o r m a t i o n T e c h n o l o g y a n d H e a l t h C a r e S& P 5 0 0 I n d e x T o p 5 C o n t r i b u t o r s : To t a l R e t u r n ‡Av e r a g e 9/ 3 0 / 2 0 1 8 YT D 2 0 1 8 W e i g h t Ne t f l i x , I n c . ( N F L X ) 94 . 9 0 % 0 . 6 % Am a z o n . c o m , I n c . ( A M Z N ) 71 . 2 7 % 2 . 8 % Mi c r o s o f t C o r p o r a t i o n ( M S F T ) 35 . 4 3 % 3 . 2 % Ap p l e I n c . ( A A P L ) 34 . 9 2 % 4 . 0 % Al p h a b e t , I n c . ( G O O G G O O G L ) 14 . 3 2 % 2 . 9 % Ma r k e t M o m e n t u m F a v o r s E x p e n s i v e S t o c k s  S& P 5 0 0 s t o c k s t r a d i n g a t t h e m o s t e x p e ns i v e p r i c e - t o - e a r n i n g s ( P / E ) r a t i o s – gr e a t e r t h a n 3 2 x – r e t u r n e d a b o u t 4 1 % Y T D , o r r o u g h l y 4 x t h e Y T D r e t u r n f o r t h e ov e r a l l I n d e x We a k P e r f o r m a n c e A c r o s s a W i d e S p e c t r u m o f S e c t o r s A r e Ca u s i n g S i g n i f i c a n t H e a d w i n d s f o r D i v e r s i f i e d M a n a g e r s  8 o f t h e 1 1 s e c t o r s u n d e r p e r f o r m e d t h e S & P 5 0 0 I n d e x o n a Y T D b a s i s • If A m a z o n h a d n o t b e e n p a r t o f t h e Co n s u m e r D i s c r e t i o n a r y , t h e s e c t o r ’ s YT D r e t u r n w o u l d h a v e g o n e f r o m a b o u t 2 2 % t o l e s s t h a n 7 % Su m m a r y o f S & P 5 0 0 G I C S S e c t o r : Total Return 9/ 3 0 / 2 0 1 8 Q3 2018 Year-to-Date In f o r m a t i o n T e c h n o l o g y 12.41% 25.05% Co n s u m e r D i s c r e t i o n a r y 9.34% 21.82% He a l t h C a r e 14.58% 16.67% En e r g y 0.61% 7.49% Co m m u n i c a t i o n S e r v i c e s 1.06% 7.40% In d u s t r i a l s 9.96% 4.78% Ut i l i t i e s 2.39% 2.72% Re a l E s t a t e 0.73% 1.83% Fi n a n c i a l s 4.36% 0.06% Ma t e r i a l s 0.36% -2.73% Co n s u m e r S t a p l e s 5.70% -3.73%  Ke y i s s u e s d o m i n a t i n g m a r k e t f e a r s : 1) T r a d e W a r A n x i e t i e s 2 ) R i s i n g I n t e r e s t R a t e s We b e l i e v e c u r r e n t m a r k e t t r e n d s a r e u n s u s t a i n a b l e , a n d t h a t c o n t i n u e d st r e n g t h t h r o u g h o u t t h e d o m e s t i c e c o n o m y w i l l e v e n t u a l l y r e s u l t i n a br o a d e n i n g o f t h e m a r k e t . D a n a ’ s e q u i t y s t r a t e g i e s r e m a i n w e l l d i v e r s i f i e d a n d st i l l c o m m a n d a n a t t r a c t i v e r e l a t i v e v a l u a t i o n a d v a n t a g e v e r s u s t h e i r be n c h m a r k w i t h o u t s a c r i f i c i n g g r o wt h o r q u a l i t y c o n s i d e r a t i o n s . EQ U I T Y S U M M A R Y A S O F 9 / 3 0 / 2 0 1 8 ‡ B a s e d o n a v e r a g e w e i g h t y e a r - t o - d a t e e n d i n g 9 / 30 / 2 0 1 8 . D u e t o r o u n d i n g , n u mb e r s m a y n o t t o t a l 1 0 0 % . So u r c e : D a n a I n v e s t m e n t A d v i s o r s ; F a c t S e t D a t a S y s t e m s 14 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m  Eq u i t y i n d i c e s h a v e b e e n s t r o n g l y i n f l u e n c e d b y t h e p e r f o r ma n c e o f f e w l a r g e , m e g a - c a p t e c h n o l o g y r e l a t e d c o m p a n i e s .  Gr o w t h i n d i c e s h a v e o u t p e r f o r m e d v a l u e in d i c e s f o r s e v e n c o n s e c u t i v e q u a r t e r s a n d a b o u t 3 0 % s i n c e t h e b e g i n n i n g o f 2 0 1 7 .  In t e r n a t i o n a l e q u i t y i n d i c e s a r e n e g a t i v e an d s i g n i f i c a n t l y l a g g i n g d o m e s t i c i n d i c e s .  Ri s i n g i n t e r e s t r a t e s h a v e c a u s e d m o s t b o nd i n d i c e s t o h a v e n e g a t i v e t o t a l r e t u r n s . TO T A L R E T U R N S B Y A S S E T C L A S S ( 9 / 3 0 / 2 0 1 8 ) So u r c e : F a c t S e t R e s e a r c h ; B l o o m b e r g Ye a r - t o - D a t e T o t a l R e t u r n s T h r o u g h S e p t e m b e r 3 0 , 2 0 1 8 Un l e s s o t h e r w i s e n o t e d , a l l f i x e d i n c o m e i n d i c e s a r e I C E B o f A M L i n d i c e s ; * B l o o m b e r g B a r c l a y s I n d e x ( B B ) 17 . 0 9 % 11 . 5 1 % 10 . 5 6 % 7. 4 9 % 3. 9 2 % 0. 6 5 % 0. 1 7 % -0 . 0 5 % -0 . 2 1 % -0 . 7 2 % -0 . 9 8 % -1 . 0 7 % -1.84%-7.39%-10%-5%0%5%10%15%20% -1 0 % -5 %0%5% 10 % 15 % 20 % Ru s s e l l 10 0 0 Gr o w t h In d e x Ru s s e l l 20 0 0 I n d e x S& P 5 0 0 In d e x S& P M i d Ca p 4 0 0 In d e x Ru s s e l l 10 0 0 V a l u e In d e x S& P H i g h Qu a l i t y Pr e f e r r e d In d e x 3- 7 Y e a r Mu n i c i p a l In d e x 1- 5 Y e a r Co r p / G o v t In d e x 1- 5 Y e a r Tr e a s u r y In d e x 1- 1 0 Y e a r Co r p / G o v t In d e x MS C I E A F E In d e x BB Mo r t g a g e Ba c k e d S e c In d e x * Corp/Govt IndexMSCI EM (Emerging Markets)Index 15 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m RU S S E L L 1 0 0 0 G R O W T H V S V A L U E Da t a i s o n a c u m u l a t i v e b a s i s a n d h a s a b a s e l i n e o f 1 0 0 o n 1 2 / 3 0 / 2 0 1 6 .  In 2 0 1 8 , t h e R u s s e l l 1 0 0 0 Gr o w t h I n d e x h a s ou t p e r f o r m e d t h e R u s s e l l 1 0 0 0 Va l u e I n d e x b y m o r e t h a n +1 3 % .  Si n c e t h e b e g i n n i n g o f 2 0 1 7 , th e R u s s e l l 1 0 0 0 G r o w t h I n d e x ha s o u t p e r f o r m e d t h e R u s s e l l 10 0 0 V a l u e I n d e x b y m o r e t h a n +3 4 % . 100 10 0 104 10 4 108 10 8 112 11 2 116 11 6 120 12 0 124 12 4 128 12 8 132 13 2 136 13 6 140 14 0 144 14 4 148 14 8 152 15 2 156 15 6 118.12134.70152.46 ©FactSet Research Systems Ru s s e l l 1 0 0 0 G r o w t h , R u s s e l l 1 0 0 0 V a l u e , a n d S & P 5 0 0 I n d i c e s T o t a l R e t u r n ( b a s e l i n e 1 0 0 ) fo r t h e P e r i o d 1 2 / 3 0 / 2 0 1 6 t h r o u g h 9 / 2 8 / 2 0 1 8 (I N D E X ) R u s s e l l 1 0 0 0 G r o w t h - T o t a l R e t u r n (I N D E X ) R u s s e l l 1 0 0 0 V a l u e - T o t a l R e t u r n (I N D E X ) S & P 5 0 0 - T o t a l R e t u r n 16 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m So u r c e : F a c t S e t D a t a S y s t e m s  3 o f t h e l a s t 4 y e a r s h a v e be e n s t r o n g g r o w t h m a r k e t s .  Hi s t o r i c a l l y , e x c e p t i o n a l l y s t r o n g g r o w t h m a r k e t s b e c o m e v a l u e m a r k e t s . GR O W T H V E R S U S V A L U E M A R K E T S Ru s s e l l 1 0 0 0 G r o w t h I n d e x m i n u s R u s s e l l 1 0 0 0 V a l u e I n d e x Di f f e r e n c e i n C a l e n d a r Y e a r T o t a l R e t u r n s T h r o u g h S e p t e m b e r 3 0 , 2 0 1 8 1. 5 % -4 . 7 % 23 . 1 % 25 . 8 % -2 9 . 4 % -1 4 . 8 % -1 2 . 4 % -0 . 3 % -1 0 . 2 % -1 . 8 % -1 3 . 2 % 12 . 0 % -1 . 6 % 17 . 5 % 1. 2 % 2. 3 % -2 . 2 % 1. 0 % -0 . 4 % 9.5%-10.3%16.6%13.2%-40%-35%-30%-25%-20%-15%-10%-5%0%5%10%15%20%25%30%35%40% -4 0 % -3 5 % -3 0 % -2 5 % -2 0 % -1 5 % -1 0 % -5 %0%5% 10 % 15 % 20 % 25 % 30 % 35 % 40 % 19 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 YTD Gr o w t h M a r k e t Va l u e M a r k e t 17 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m Me g a - c a p T e c h n o l o g y S t o c k s P o w e r 2 0 1 8 ’ s N a r r o w M a r k e t  Fi v e m e g a - c a p t e c h n o l o g y r e l a t e d s t o c k s a c c o u n t f o r a b o u t 4 4 % ‡ of t h e S & P 5 0 0 ’ s y e a r - t o - d a t e ( Y T D ) r e t u r n …  Tw o c o m p a n i e s , A m a z o n . c o m ( A M Z N ) a n d A p p l e I n c . ( A A P L ) , c o n t r i b u t e d m o r e t h a n 2 5 % ‡ of t h e S & P 5 0 0 ’ s Y T D r e t u r n …  Th e s e f i v e m e g a - c a p t e c h n o l o g y r e l a t e d s t o c k s w e r e t h e to p f i v e c o n t r i b u t o r s t o t h e S & P 5 0 0 I n d e x Y T D r e t u r n . . . ‡ B a s e d o n a v e r a g e w e i g h t y e a r - t o - d a t e e n d i n g 9 / 30 / 2 0 1 8 . D u e t o r o u n d i n g , n u m b e r s m a y n o t t o t a l 1 0 0 % . N et f l i x , I n c . ( N F L X ) ; A l p h a b e t , I n c . ( G O O G G O O G L) ; M i c r o s o f t C o r p o r a t i o n ( M S F T ) ; A p p l e , I n c . ( A A P L ) ; A m a z o n . c o m , I n c . ( A M Z N ) . So u r c e : F a c t S e t R e s e a r c h S y s t e m s Th e t o p 5 c o n t r i b u t o r s ac c o u n t e d f o r n e a r l y 4 4 % of t h e S & P 5 0 0 I n d e x Y T D to t a l r e t u r n , B U T – o n l y ma d e u p a b o u t 1 4 % ‡ of th e I n d e x b y m a r k e t c a p Am a z o n . c o m , 1 . 5 % Ap p l e , I n c . , 1 . 4 % Mi c r o s o f t C o r p . , 1 . 0 % Al p h a b e t , I n c . , 0 . 4 % Ne t f l i x , I n c . , 0 . 4 % S& P 5 0 0 In d e x 10 . 5 6 % 0.0 % 0.5 % 1.0 % 1.5 % 2.0 % 2.5 % 3.0 % 3.5 % 4.0 % 4.5 % 5.0 % 5.5 % 6.0 % 6.5 % 7.0 % 7.5 % 8.0 % 8.5 % 9.0 % 9.5 % 10 . 0 % 10 . 5 % 11 . 0 % S& P 5 0 0 I n d e x T o t a l R e t u r n : Fi v e M e g a - C a p S t o c k s C o n t r i b u t i o n ‡ 9/ 3 0 / 2 0 1 8 Y e a r - t o - D a t e R e t u r n ~1 4 % Amazon.com 2.8%Apple, Inc. 4.0%Microsoft Corp.3.2%Alphabet, Inc.2.9%Netflix, Inc.0.6% Re m a i n i n g St o c k s 86 . 4 9 % 0%5%10%15%20%25%30%35%40%45%50%55%60%65%70%75%80%85%90%95%100% S& P 5 0 0 I n d e x T o t a l R e t u r n : St o c k W e i g h t s ‡ as o f 9 / 3 0 / 2 0 1 8 Dr a w n t o s c a l e 18 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m Th e M o s t E x p e n s i v e L a r g e C a p S t o c k s W o n t h e R e c e n t P e r f o r m a n c e R a c e :  S& P 5 0 0 s t o c k s t r a d i n g a t t h e m o s t e x p e n s i v e p r i c e - t o - e a r n i n g s ( P / E ) r a t i o s – gr e a t e r t h a n 3 2 x – r e t u r n e d + 4 1 % year-to-date TH E M O S T E X P E N S I V E S T O C K S P E R F O R M E D B E S T Y E A R - T O - D A T E 2 0 1 8 40 . 7 9. 8 -7 . 6 10 . 6 -1 0-6-226101418222630343842 To p 1 0 % P / E gr e a t e r t h a n 3 2 x Mi d d l e 8 0 % P / E be t w e e n 10 . 8 5 x a n d 3 2 x Bo t t o m 1 0 % P / E le s s t h a n 1 0 . 8 5 x S& P 5 0 0 I n d e x S& P 5 0 0 I n d e x : T o t a l R e t u r n Y e a r - t o - D a t e As o f 9 / 3 0 / 2 0 1 8 In d e x B a r b e l l A n a l y s i s - M e t h o d o l o g y : T h i s a n a l y s i s s e p a r a t e s t h e S & P 5 0 0 I n de x i n t o t h r e e P / E s e g m e n t s r e p r e s e n t i n g 1 0 % , 8 0 % a n d 1 0 % o f t h e I n d e x , - “ T op 1 0 % P r i c e - t o - E a r n i n g s ” s e g m e n t r e p r e s e n t s t h e a v e r a g e o f a l l S& P 5 0 0 s t o c k s w i t h a P / E g r e a t e r t h a n 3 2 x ; “ B o t t o m 1 0 % P r i c e - t o - E a r n i n g s ” s e g m e n t r e p r e s e n t s t h e a v e r a g e o f a l l S & P 5 0 0 s t o c k s w i t h a P / E l e s s t h a n ; “ M i dd l e 8 0 % P r i c e - t o - E a r n i n g s ” s e g m e n t r e p r e s e n t s t h e a v e r a g e o f al l S & P 5 0 0 s t o c k s w i t h a P / E b e t w e e n 1 0 . 8 5 x a n d 3 2 x ; S o u r c e : F a c t S e t R e s e a r c h S y s t e m s 19 ECONOMIC & MARKET UPDATE www.DanaInvestment.com A DEEPER LOOK INTO FACTOR ANALYSIS (9/30/2018) All factor data is based on Goldman Sachs Global Investment Research Investment Profiling (IP) methodology1 Integrated is based on a blend of Financial Returns, Growth, and Value. Financial Returns includes ROE, ROCE and CROCI. Growth includes Sales, EBITDA and EPS growth. Value includes P/E, P/B, Div Yield, EV/EBITDA, EV/FCF & EV/DACF. Only P/E, P/B and Div Yield are used for Financials. Balance Sheet is 1 yrfwd Net Debt/EBITDA (not calculated for Financials). Size uses market cap (in $). Volatility is based on standard deviation of daily returns over trailing 12m. Momentum is defined by buying the outperformers and selling the worst price performers on a 6M rolling basis. Short Interest is based on Short Interest Days (SI/ADTV). Source: I/B/E/S, Goldman Sachs Global Investment Research. A recent report from Goldman Sachs analyzed various factor performance within the S&P 500. These statistics indicate a wide divergence in performance by factor, with the market showing a strong preference towards stocks with higher growth rates and price momentum, irrespective of valuation. We are seeing signs of change. While momentum ranked amongst the strongest factors for absolute performance in 2017, and continued for much of 2018 and Q3, this effect has been waning throughout 2018. Valuation factors generally underperformed, but this factor effect has been improving. Growth factors showed consistent strong outperformance in 2017 and have been much less impactful throughout 2018. Quality factors, such as superior profitability and balance sheet strength worked in 2017, but not during the first half of 2018. However, quality factors rebounded in Q3, which is encouraging. 20 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m ‡ B a s e d o n a v e r a g e w e i g h t y e a r - t o - d a t e e n d i n g 9 / 30 / 2 0 1 8 . D u e t o r o u n d i n g , n u mb e r s m a y n o t t o t a l 1 0 0 % . So u r c e s : ht t p s : / / w w w . m s c i . c o m / g i c s ; Fa c t S e t D a t a S y s t e m s In S e p t e m b e r 2 0 1 8 , t h e T e l e c o m m u n i c a t i o n S e r v i c e s s e c t o r wi t h i n t h e S & P 5 0 0 I n d e x w a s e x p a n d e d a n d r e n a m e d t h e Co m m u n i c a t i o n S e r v i c e s s e c t o r .  Th e n e w C o m m u n i c a t i o n S e r v i c e s se c t o r m a k e s u p a p p r o x i m a t e l y 10 % o f t h e I n d e x .  Ab o u t 2 0 % o f t h e I n f o r m a t i o n T e c hn o l o g y a n d 2 3 % o f t h e C o n s u m e r Di s c r e t i o n a r y s e c t o r s w e r e r e c l a s s i f i e d . • Al p h a b e t , I n c . ( G O O G & G O O G L ) , F a c e b o o k , I n c . ( F B ) , a n d N e t f l i x , In c . ( N F L X ) a c c o u n t f o r o v e r 5 0 % ‡ of t h e n e w C o m m u n i c a t i o n Se r v i c e s s e c t o r .  Al p h a b e t , I n c . a n d F a c e b o o k , I n c . w e r e m o v e d f r o m t h e In f o r m a t i o n T e c h n o l o g y s e c t o r .  Ne t f l i x , I n c . a n d a n u m b e r o f t r a d i t i o n a l m e d i a a n d en t e r t a i n m e n t c o m p a n i e s w e r e m o v e d f r o m t h e C o n s u m e r Di s c r e t i o n a r y s e c t o r .  Ot h e r l a r g e c o n s t i t u e n t s o f t h e ne w C o m m u n i c a t i o n S e r v i c e s s e c t o r ‡: • AT & T , I n c . ( T ) a n d V e r i z o n C o m m u n i c a t i o n , I n c . ( V Z ) a r e e a c h ro u g h l y 1 0 % . • Wa l t D i s n e y C o m p a n y ( D I S ) a n d C o m c a s t C o r p o r a t i o n ( C M C S A ) ar e e a c h r o u g h l y 7 % .  Am a z o n . c o m , I n c . n o w a c c o u n t s f o r a b o u t 1 / 3 o f t h e t o t a l m a r k e t ca p i t a l i z a t i o n ‡ of t h e s h r u n k e n C o n s u m e r D i s c r e t i o n a r y s e c t o r . GI C S ® S E C T O R C H A N G E F R O M T E L E C O M M U N I C A T I O N S E R V I C E S T O C O M M U N I C A T I O N S E R V I C E S S & P 5 0 0 I n d e x S e c t o r C h a n g e s Th i s S e c t o r no l o n g e r e x i s t s 10 % 10 % 21% 2% Th i s S e c t o r d i d n o t pr e v i o u s l y e x i s t 13 % 26% 0 % 2 % 4 % 6 % 8 % 1 0 % 1 2 % 14%16%18%20%22%24%26% Te l e c o m m u n i c a t i o n Se r v i c e s Co m m u n i c a t i o n Se r v i c e s Co n s u m e r Di s c r e t i o n a r y In f o r m a t i o n Te c h n o l o g y Ol d S e c t o r W e i g h t New Sector Weight 21 www.DanaInvestment.comwww.DanaInvestment.com10 / 2 2 / 2 0 1 8 See Important Disclosure Information Strategy Profile Mandate: U.S. Large Cap Equity Benchmark: S&P 500 Index Inception: June 29, 1999 Average Number of Holdings: 50–55 Target Cash %: 0–1% Individual Security Limit: No individual position > 4% Sector Limit: Sector Neutral Actual Composite Holdings as of September 30, 2018 9.92% 10.39% 6.51% 5.97% 13.33% 15.07% 9.83% 20.95% 2.44% 2.76% 2.85% 10.03% 10.30% 6.71% 6.00% 13.31% 15.05% 9.70% 20.99% 2.43% 2.65% 2.83% Comm Svcs Cons Disc Cons Stples Energy Financials Health Care Industrials Info Tech Materials Real Estate Utilities Dana Large Cap Equity Strategy S&P 500 Index Source: Dana Investment Advisors; FactSet Research Systems DANA LARGE CAP EQUITY STRATEGY PROFILE AND OVERVIEW 22 DA N A L A R G E C A P E Q U I T Y ST R A T E G Y ww w . D a n a I n v e s t m e n t . c o m CO N T R I B U T O R S A N D D E T R A C T O R S 3 RD QUARTER 2018 So u r c e : D a n a I n v e s t m e n t A d v i s o r s ; F a c t S e t R e s e a r c h S y s t e m Se c t o r C o n t r i b u t o r s  In d u s t r i a l s – L e d b y N o r f o l k S o u t h e r n C o r p or a t i o n ( N S C ) , a l l 5 S t r a t e g y h o l d i n g s pr o d u c e d d o u b l e - d i g i t p o s i t i v e r e t u r n s i n Q3 , a s I n d u s t r i a l s w a s o n e o f t h e s t r o n g e s t se c t o r s f o r t h e m a r k e t  Co m m u n i c a t i o n S e r v i c e s – A g o o d q u a r t e r b y T- M o b i l e U . S . I n c . ( T M U S ) a c c o u n t e d a l l of t h e p o s i t i v e r e l a t i v e p e r f o r m a n c e i n t h i s s e c t o r , w h i c h u n d e r w e n t a m a j o r re s t r u c t u r i n g i n c o m p o s i t i o n b y S& P a t t h e e n d o f t h e q u a r t e r  En e r g y – A r e l a t i v e l y d e f e n s i v e p o s t u r e a n d a s l i g h t b o u n c e i n E x x o n M o b i l Co r p o r a t i o n ( X O M ) h e l p e d t h e S t r a t e g y i n o n e o f t h e m a r k e t ’ s l a c k l u s t e r s e c t o r s i n Q 3 Se c t o r D e t r a c t o r s  In f o r m a t i o n T e c h n o l o g y – C o m p a n i e s i n th i s s e c t o r p e r f o r m e d w e l l , h o w e v e r ef f e c t i v e u n d e r w e i g h t s t o A p p l e , I n c . ( A A P L) a n d M i c r o s o f t C o r p o r a t i o n ( M S F T ) d u e t o th e i r s i z e i n I n d e x c r e a t e d a n e t l o s s ; we a k n e s s i n o u r s e m i c o n d u c t o r h o l d i n g s , pa r t i c u l a r l y M i c r o c h i p T e c h n o l o g y I n c. ( M C H P ) , a l s o i m p a c t e d p e r f o r m a n c e  Co n s u m e r D i s c r e t i o n a r y – A m a z o n . c o m I n c. ( A M Z N ) a c c o u n t e d f u l l y f o r t h e un d e r p e r f o r m a n c e i n t h e C o n s u m e r D i s c r e t i on a r y s e c t o r ; L e a r C o r p o r a t i o n ( L E A ) a l s o hi n d e r e d t h e r e s u l t s  He a l t h C a r e – W h i l e H e a l t h C a r e w a s t h e S t r a te g y ’ s s e c o n d - s t r o n g e s t s e c t o r i n Q 3 , t h i s se c t o r l e d t h e m a r k e t ; u n d e r p e r f o r m a n c e w a s s p r e a d a c r o s s m u l t i p l e s t o c k s , in c l u d i n g 1 1 i n d e x c o n s t i t u e n t s t h a t w e r e u p m o r e t h a n 2 0 % Fa c e b o o k , I n c . C l a s s A ( F B ) -15.37% Le a r C o r p o r a t i o n ( L E A ) * -13.58% Ty s o n F o o d s , I n c . C l a s s A ( T S N ) -13.12% Mi c r o c h i p T e c h n o l o g y I n c o r p o r a t e d ( M C H P ) - 1 2 . 8 6 % In t e l C o r p o r a t i o n ( I N T C ) -4.29% * S o l d i n S e p t e m b e r In d i v i d u a l D e t r a c t o r s Ro y a l C a r i b b e a n C r u i s e s L t d . ( R C L ) 26.09% Pf i z e r I n c . ( P F E ) 22.51% Ap p l e I n c . ( A A P L ) 22.38% No r f o l k S o u t h e r n C o r p o r a t i o n ( N S C ) 20.20% Mi c r o s o f t C o r p o r a t i o n ( M S F T ) 16.43% In d i v i d u a l C o n t r i b u t o r s 23 DA N A L A R G E C A P E Q U I T Y ST R A T E G Y ww w . D a n a I n v e s t m e n t . c o m AD D I T I O N S A N D D E L E T I O N S 3 RD QUARTER 2018 So u r c e : D a n a I n v e s t m e n t A d v i s o r s ; F a c t S e t R e s e a r c h S y s t e m Se l e c t A d d i t i o n s  We l l c a r e H e a l t h P l a n s I n c . ( W C G ) – G ov e r n m e n t - f o c u s e d m a n a g e d c a r e pr o v i d e r b e n e f i t s f r o m s t a t e M e d i c a id c o v e r a g e e x p a n s i o n a n d a n a g i n g po p u l a t i o n . A n e w m a n a g e m e n t t e a m h a s d e m o n s t r a t e d a n a b i l i t y t o w i n bu s i n e s s i n k e y e n d m a r k e t s a n d u n d e rs t a n d s s t r a t e g i c i m p e r a t i v e s . T h e co m p a n y i s l a r g e e n o u g h t o e n j o y t h e be n e f i t s o f s c a l e y e t s m a l l e n o u g h fo r a c q u i s i t i o n s t o m o v e t h e n ee d l e . R e c e n t c o n t r a c t w i n s a n d ac q u i s i t i o n s a r e e x p e c t e d t o a d d +3 5 % t o t h e l e g a c y r e v e n u e b a s e . We l l c a r e ’ s a b i l i t y t o a d d r e s s s o c i o ec o n o m i c a l l y d i s a d v a n t a g e d a n d me d i c a l l y c o m p l e x p o p u l a t i o n s s p e a k s t o a s u s t a i n a b l e b u s i n e s s m o d e l .  Vi s a I n c . ( V ) – V i s a i s o n e o f t w o – a l o n g w i t h M a s t e r c a r d – g l o b a l l y en t r e n c h e d p a y m e n t p r o c e s s i n g a n d c l ea r i n g n e t w o r k s . G l o b a l e l e c t r o n i c pa y m e n t s g r o w t h w i l l s u b s t a n t i a l l y o u tp a c e g l o b a l G D P g r o w t h a s c a s h an d c h e c k s a r e r e p l a c e d . V i s a ’ s c o r e a ss e t i s e x t r e m e l y d i f f i c u l t t o r e p l i c a t e gi v e n a n e t w o r k o f 4 5 m i l l i o n g l o b a l m e rc h a n t s , b i l l i o n s o f c o n s u m e r c a r d ho l d e r s , a n d t h o u s a n d s o f i s s u i n g b a nk s . E - c o m m e r c e a n d t r a v e l a r e n e a r - te r m t a i l w i n d s f o r t h e h i g h m a r g i n cr o s s - b o r d e r b u s i n e s s . T h e i n t e g r a t i o n of V i s a E u r o p e i s o n g o i n g a n d re m a i n s a s u b s t a n t i a l l o n g - t e r m op p o r t u n i t y . O t h e r c a t a l y s t s i n c l u d e co n t a c t l e s s p a y m e n t s , V i s a D i r e c t an d b u s i n e s s - t o - b u s i n e s s p a y m e n t s .  Ta r g e t C o r p o r a t i o n ( T G T ) – I m p r o v e m e nt s i n c u s t o m e r c o n v e n i e n c e a n d se r v i c e h a v e l e d t o i m p r o v i n g i n - s to r e s a l e s a n d i m p r o v e d e - c o m m e r c e re v e n u e s . C o n v e n i e n c e i m p r o v e m e n t s i n c l u d e c u s t o m e r o p t i o n s co m p r i s i n g s h i p - f r o m - s t o r e , i n - s t o r e p i c k - u p , a n d s a m e - d a y d e l i v e r y v i a Sh i p t . W i t h i m p r o v i n g f u n d a m e n t a l s a n d r e a s o n a b l e v a l u a t i o n , t h e s t o c k sh o u l d h a v e a p o s i t i v e ri s k a n d r e t u r n p r o f i l e . Se l e c t D e l e t i o n s  Ph i l i p M o r r i s I n t e r n a t i o n a l I n c . ( P M) – P h i l i p M o r r i s h a s d i s a p p o i n t e d in v e s t o r s w i t h n e g a t i v e e a r n i n g s re v i s i o n s a s n e w p r o d u c t s h a v e pe r f o r m e d w o r s e t h a n e x p e c t a t i o n s . I Q os, an electronic cigarette that he a t s b u t d o e s n o t b u r n t o b a c c o l i k e a t y p i c a l c i g a r e t t e , h a s s t o p p e d gr o w i n g i n m a t u r e m a r k e t s l i k e J a p a n , w e l l s h o r t o f e a r l i e r e x p e c t a t i o n s . Wi t h s l o w e r r e v e n u e g r o w t h , t h e s t o c k appears fully valued at the current va l u a t i o n .  TE C o n n e c t i v i t y L t d . ( T E L ) – C o n n e c t or a n d s e n s o r m a n u f a c t u r e r i s si g n i f i c a n t l y e x p o s e d t o n e g a t i v e c u r r e n c y m o v e m e n t . M a r g i n de g r a d a t i o n i n t h e s u b s e a c o m m u n i ca t i o n s b u s i n e s s i s w e i g h i n g o n ov e r a l l e a r n i n g s g r o w t h a n d d o e s n o t se e m l i k e l y t o r e s o l v e q u i c k l y . W e co n t i n u e t o l i k e T E C o n n e c t i v i t y ’ s e x p o s u r e t o s e c u l a r t r e n d s i n co n n e c t i v i t y b u t s e e e v e n b e t t e r o pp o r t u n i t i e s i n t h e f a s t - g r o w i n g te c h n o l o g y s e c t o r .  Le a r C o r p o r a t i o n ( L E A ) – T h e c o m p a n y is f a c i n g m u l t i p l e h e a d w i n d s a s th e i r g l o b a l a u t o p r o d u c t i o n f o r e c a st s a r e r e v i s e d d o w n w a r d s a n d t r a d e te n s i o n s w i t h C h i n a a n d t h e U . S . e s c a la t e . R a w m a t e r i a l p r i c e s a r e a l s o u p , wh i c h r e s u l t s i n h i g h e r c o s t s . W h il e t h e c o m p a n y i s w e l l m a n a g e d , sl o w i n g g r o w t h a n d r i s i n g c o s t s s h o u l d l i m i t u p s i d e p o t e n t i a l i n t h e na m e . 24 DA N A L A R G E C A P E Q U I T Y ST R A T E G Y ww w . D a n a I n v e s t m e n t . c o m  Da n a ' s s u c c e s s f u l l o n g - t e r m t r a c k r e c o r d is b a s e d u p o n c o n s i s t e n t p o r t f o l i o c h a r ac t e r i s t i c s a n d d i s c i p l i n e d r i s k c o n t r o l s  Da n a s e e k s t o b u i l d p o r t f o l i o s w i t h l o w e r v a l u a t i o n r i s k t h a n t h e i r b e n c h m a r k w h il e n o t s a c r i f i c i n g g r o w t h o r q u a l i t y  Da n a L a r g e C a p E q u i t y S t r a t e g y i s e x t r e m e l y w e l l p o s i t i o n e d i n t h e c u r r e n t e n v i r o n m e n t , a s t h e a gg r e g a t e h o l d i n g s a r e g e n e r a t i n g faster growth in earnings an d d i v i d e n d s w i t h i n - l i n e s a l e s , y e t t r a d e at a n a t t r a c t i v e d i s c o u n t t o t h e m a r k e t CH A R A C T E R I S T I C S O V E R V I E W Va l u a t i o n D i s c o u n t  Da n a c o n s i s t e n t l y h o l d s a v a l u a t i o n d i s c o u n t re l a t i v e t o t h e be n c h m a r k i n d e x Su p e r i o r G r o w t h P o t e n t i a l  Be t t e r h i s t o r i c a l a n d pr o j e c t e d g r o w t h t h a n th e b e n c h m a r k Qu a l i t y E a r n i n g s & M a n a g e m e n t  Da n a h o l d i n g s t e n d t o ha v e s t r o n g b a l a n c e sh e e t s w i t h a b o v e av e r a g e p r o f i t a b i l i t y Fo r w a r d P / E ¹ EV / E B I T D A ¹ Pr i c e t o F r e e Ca s h F l o w Dividend Yield Hi s t o r i c a l 3 Y e a r EP S % G r o w t h FY 1 E P S % G r o w t h FY 1 S a l e s % G r o w t h 3 Year Dividend Growth Re t u r n o n E q u i t y ( R O E ) ² Ne t M a r g i n As s e t T u r n o v e r LT Debt to Capital Da t a a s o f S e p t e m b e r 3 0 , 2 0 1 8 Ac t u a l c o m p o s i t e h o l d i n g s a s o f 9 / 3 0 / 2 0 1 8 u n l e s s o t h e r w i s e n o t e d . Ch a r a c t e r i s t i c s a n d d i v i d e n d s r e p r e s e n t w e i g h t e d a v e r a g e s , u n l e s s o t h e r w i s e n o t e d : ( 1 ) W e i g h t e d H a r m o n i c A v e r a g e ; ( 2 ) W e i g h t e d Median So u r c e : D a n a I n v e s t m e n t A d v i s o r s ; F a c t S e t R e s e a r c h S y st e m ; M o r n i n g s t a r D i r e c t 11 . 7 9 13 . 9 2 014 Da n a L C E q u i t y S & P 5 0 0 I n d e x 15 . 2 5 17 . 4 8 018 Da n a L C E q u i t y S & P 5 0 0 I n d e x 2.20 1.88 0.02.2 Dana LC Equity S&P 500 Index 17 . 1 5 21 . 6 3 022 Da n a L C E q u i t y S & P 5 0 0 I n d e x 24 . 2 4 23 . 4 1 025 Da n a L C E q u i t y S & P 5 0 0 I n d e x 18 . 4 5 10 . 3 0 019 Da n a L C E q u i t y S & P 5 0 0 I n d e x 15.02 10.74 016 Dana LC Equity S&P 500 Index 9. 6 1 10 . 4 9 011 Da n a L C E q u i t y S & P 5 0 0 I n d e x 14 . 0 8 13 . 5 7 015 Da n a L C E q u i t y S & P 5 0 0 I n d e x 24 . 6 9 23 . 1 0 025 Da n a L C E q u i t y S & P 5 0 0 I n d e x 40.66 40.11 041 Dana LC Equity S&P 500 Index 0. 8 4 0. 7 1 0. 0 0. 9 Da n a L C E q u i t y S & P 5 0 0 I n d e x 25 DA N A L A R G E C A P E Q U I T Y ST R A T E G Y ww w . D a n a I n v e s t m e n t . c o m So u r c e : D a n a I n v e s t m e n t A d v i s o r s ; M o r n i n g s t a r D i r e c t  Da n a ’ s i n v e s t m e n t p r o c e s s f o c u s e s o n m a n a g e m e n t t e a m s t h a t e x e c u t e a t a h i g h l e v e l  Da n a L a r g e C a p E q u i t y h o l d i n g s h a v e c o n s i s t e n t l y p r o v i d e d q u a r t e r l y e a r n i n g s s u r p r i s e s a t a r a t e g r e a t e r t h a n t h e b e n c h m a r k f o r t h e l a s t tw e l v e c o n s e c u t i v e q u a r t e r s CO N S I S T E N T E A R N I N G S E X E C U T I O N Pe r c e n t a g e o f C o m p a n i e s M e e t i n g o r B e a t i n g E a r n i n g s E s t i m a t e s T h r o u g h S e p t e m b e r 3 0 , 2 0 1 8 8 8 . 4 6 8 5 . 1 9 8 5 . 1 9 8 3 . 3 3 8 3 . 0 2 8 0 . 3 6 8 8 . 4 6 7 7 . 7 8 7 4 . 0 7 8 3 . 0 2 8 1 . 1 3 6 0 . 3 8 7 6 . 4 7 9 2 . 9 8 8 1 . 3 6 8 6 . 1 1 7 9 . 3 1 7 5 . 0 0 7 2 . 7 3 8 2 . 4 6 8 4 . 7 5 7 1 . 9 3 8 2 . 7 6 9 1 . 5 3 8 0 . 3 6 7 9 . 2 5 8 3 . 9 3 7 9 . 2 5 8 3 . 0 2 8 7 . 2 7 8 5 . 7 1 8 3 . 9 3 85.00 89.47 85.71 6 3 . 1 3 8 2 . 1 7 8 2 . 2 4 7 6 . 2 2 7 6 . 5 3 7 4 . 1 8 7 5 . 9 1 7 3 . 6 1 6 8 . 8 5 7 0 . 3 6 7 2 . 1 5 7 3 . 0 8 7 3 . 0 2 7 5 . 6 1 7 6 . 6 4 7 7 . 4 8 7 5 . 0 5 7 6 . 7 2 7 6 . 7 8 7 9 . 8 8 7 8 . 4 3 7 5 . 1 0 7 8 . 3 8 7 5 . 4 0 7 8 . 3 8 7 7 . 2 2 8 0 . 8 9 7 8 . 0 0 7 6 . 2 1 8 0 . 7 6 7 9 . 9 6 81.09 80.24 82.93 82.76 0255075 10 0 Q1 '1 0 Q2 '1 0 Q3 '1 0 Q4 '1 0 Q1 '1 1 Q2 '1 1 Q3 '1 1 Q4 '1 1 Q1 '1 2 Q2 '1 2 Q3 '1 2 Q4 '1 2 Q1 '1 3 Q2 '1 3 Q3 '1 3 Q4 '1 3 Q1 '1 4 Q2 '1 4 Q3 '1 4 Q4 '1 4 Q1 '1 5 Q2 '1 5 Q3 '1 5 Q4 '1 5 Q1 '1 6 Q2 '1 6 Q3 '1 6 Q4 '1 6 Q1 '1 7 Q2 '1 7 Q3 '1 7 Q4 '17Q1 '18Q2 '18Q3 '18 Da n a L a r g e C a p E q u i t y S& P 5 0 0 I n d e x 26 www.DanaInvestment.comwww.DanaInvestment.com10 / 2 2 / 2 0 1 8 See Important Disclosure Information 10 9 8 7 6 5 4 3 2 1 112 124 136 148 160 172 184 196 208 220 102 107 118 123 129 134 142 154 154 154 91% 86% 87% 83% 81% 78% 77% 79% 74% 70%% Periods Beating # Periods Beating Total # Periods Excess Rolling Returns Over The Strategy Inception June 30, 1999 to September 30, 2018 Years in Rolling Periods -12% -6% 0% 6% 12% 18% 24% Ro l l i n g R e t u r n D i f f e r e n t i a l s (g r o s s o f f e e s ) Diamondsrepresent average excess return Bars represent the range of rolling return differentials Rolling Excess Performance • Disciplined Process Matters Source: Dana Investment Advisors; S&P 500 Index Data – FactSet Research Systems Key Points: • Our disciplined process has led to consistent excess returns over time, through various market cycles and levels of volatility • This has meant that the “entry” point has mattered less in terms of subsequent relative performance, particularly when rolling periods are three years or more Methodology: Monthly total returns were used for the Dana Large Cap Equity Strategy and the S&P 500 Index starting with the Strategy’s inception (6/30/1999). Rolling returns were then calculated for various time periods ranging from 1 to 10 years. Both the average return and range of rolling period returns are depicted on the graph. DANA LARGE CAP EQUITY STRATEGY HISTORICAL PERFORMANCE 27 www.DanaInvestment.comwww.DanaInvestment.com10 / 2 2 / 2 0 1 8 See Important Disclosure Information Annualized Up Market Return Annualized Growth Market Return 53 Up Market Quarters 40 Growth Market Quarters Annualized Upside Capture Ratio: 101.36%Growth Market Beta: 0.98 Annualized Down Market Return Annualized Value Market Return Total Cumulative Return 24 Down Market Quarters 37 Value Market Quarters Annualized Downside Capture Ratio: 80.59%Value Market Beta: 0.84 77 Market Quarters Based on quarterly returns from 6/30/1999 to 9/30/2018 Up and Down Market defined by S&P 500; Growth and Value market defined by Russell 1000 Growth versus Russell 1000 Value Index returns; Beta is calculated for the Dana Large Cap Equity composite against the S&P 500 Index Source: Dana Investment Advisors; Informa Investment Solutions - PSN Enterprises 25.75%25.40% 0% 26% Dana LC Equity S&P 500 Index -21.65% -26.86% -27% 0% Dana LC Equity S&P 500 Index 381.40% 207.09% 0% 382% Dana LC Equity S&P 500 Index 9.64%8.58% 0% 10% Dana LC Equity S&P 500 Index 7.29% 3.28% 0% 8% Dana LC Equity S&P 500 Index Historical Market Capture • Limiting the Downside and Participating in the Upside As of September 30, 2018 (gross of fees) Our process strives to perform well in all markets, but our clients have found that over longer time periods limiting the downside has benefitted their total portfolio. DANA LARGE CAP EQUITY STRATEGY HISTORICAL PERFORMANCE 28 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m MA C R O E C O N O M I C B A C K G R O U N D GD P g r o w t h c o n t i n u e s a b o v e t h e p o s t - r e c e s s i o n l e v e l s  GD P f o r Q 3 w a s 3 . 5 0 % l e d b y s t r o n g g r o w t h i n co n s u m p t i o n ( f a s t e s t p a c e of c o n s u m p t i o n s i n c e Q 4 20 1 4 ) w h i l e b u s i n e s s i n v e s t m e n t d e c e l e r a t e d  Fu l l y e a r e s t i m a t e s a r e a r o u n d 2 . 9 % , 2 0 1 9 e s t i m a t e s ar o u n d 2 . 8 % Di s c u s s i o n s i n t h e m a r k e t  Ea r n i n g s g r o w t h c o n t i n u e s t o b e p o s i t i v e , Q 3 e x p e c t e d ab o u t + 1 9 % & Q 4 a b o u t + 1 7 %  Gr o w t h v s . v a l u e a n d n a r r o w v s . b r o a d , h o w m u c h lo n g e r w i l l t r e n d s c o n t i n u e  Co n s e q u e n c e s f r o m t r a d e d i s p u t e s a n d h i g h e r i n t e r e s t ra t e s c o u l d i m p a c t Q 4 g u i d a n c e  Cy c l e d o u b t s a n d h i g h e r c o s t p r e s s u r e s Gl o b a l g r o w t h d i v e r g e n c e  Th e U . S . c o n t i n u e s t o d i s p l a y s o l i d g r o w t h , b u t n o lo n g e r a c c e l e r a t i n g  Gl o b a l g r o w t h l o o k s t o h a v e p e a k e d a n d i s n o l o n g e r sy n c h r o n i z e d  Ce n t r a l b a n k s a n d p o l i t i c a l t e n s i o n s l u r k i n t h e s h a d o w s 3r d Q u a r t e r 2 0 1 8 S u m m a r y  U. S . e q u i t i e s c o n t i n u e d h i g h e r d e s p i t e t r a d e d i s p u t e s , po l i t i c a l d r a m a , a n d h i g h e r i n t e r e s t r a t e s  Ro b u s t j o b g r o w t h , r e l a t i v e l y l o w i n t e r e s t r a t e s , a n d st r o n g e c o n o m i c g r o w t h d r o v e c o n s u m e r c o n f i d e n c e to a n e w 1 8 y e a r h i g h i n S e p t e m b e r  Tr a d e d i s p u t e s h a v e g o n e b o t h w a y s : i n c r e a s e d te n s i o n s ( C h i n a ) a n d r e s o l u t i o n s  We a k e m e r g i n g m a r k e t s d u e t o r i s i n g t r a d e t e n s i o n s , a st r o n g e r U . S . D o l l a r ( U S D ) , a n d r i s i n g U . S . i n t e r e s t r a t e s So u r c e : O E C D ( 2 0 1 8 ) , R e a l G D P f o r e c a s t ( i n d i c a t o r ) . d o i : 1 0 . 1 7 8 7 / 1 f 8 4 1 5 0 b - e n ( A c c e s s e d o n 2 6 O c t o b e r 2 0 1 8 ) N o t e s : C h i n a i s P e o p l e ' s R e p u b l i c o f C h i n a ; O r g a n i s a t i o n f o r E c o n o m i c C o - o p e r a t i o n a n d D e v e l o p m e n t ( O E C D ) i n c l u d e s 3 5 c o u n t i e s . Wo r l d G D P G r o w t h F o r e c a s t s : I m p r o v i n g G r o w t h E x p e c t e d Re a l G D P f o r e c a s t , T o t a l , A n n u a l g r o w t h r a t e ( % ) , 2 0 1 5 – 2 0 1 9 6 . 9 8 . 2 1 . 4 2 . 5 2.9 6 . 7 7 . 1 1 . 0 1.8 1.5 6 . 9 6 . 5 1 . 7 2.6 2.3 6 . 7 7 . 4 1 . 2 2.6 2.9 6 . 4 7 . 5 1 . 2 2.5 2.8 0246810 Ch i n a I n d i a J a p a n O E C D - T o t a l U n i t e d S t a t e s R e a l G D P G r o w t h ( % Y / Y ) 20 1 5 20 1 6 20 1 7 20 1 8 ( E ) 2019(E) Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15Q1 '16Q2 '16Q3 '16Q4 '16Q1 '17Q2 '17Q3 '17Q4 '17Q1 '18Q2 '18Q3 '18 1.464.47 1.55 3.74 2.98 2.02 -0.96 2.89 -0.11 4.72 3.17 1.73 0.54 0.46 3.59 0.49 3.17 3.23 -1.00 5.11 4.92 1.90 3.33 3.34 0.96 0.401.552.281.931.761.792.992.822.292.224.163.50 GD P G r o w t h S i n c e R e c e s s i o n E n d e d (9/30/2009 to 9/28/2018) Av e r a g e f o r P e r i o d 2 . 3 1 De f i n i t i o n o f R e a l G D P f o r e c a s t : R e a l g r o s s d o m e s t i c p r o d u c t ( G D P ) i s G D P g i v e n i n c o n s t a n t p r i c e s a n d r e f e r s t o t h e v o l u m e l e ve l o f G D P . C o n s t a n t p r i c e e s t i m a t e s o f G D P a r e o b t a i n e d b y e x p r e s s i n g v a l u e s o f a l l g o o d s a n d s e r v i c e s p r o d u c e d i n a g i v e n y e a r, ex p r e s s e d i n t e r m s o f a b a s e p e r i o d . F o r e c a s t i s b a s e d o n a n a ss e s s m e n t o f t h e e c o n o m i c c l i m a t e i n i n d i v i d u a l c o u n t r i e s a n d t h e w o r l d e c o n o m y , u s i n g a c o m b i n a t i o n o f m o d e l - b a s e d a n a l y s e s a n d e x p e r t j u d g e m e n t . T h i s i n d i c a t o r i s m e a s u r e d i n g r o w t h r a t e s co m p a r e d t o p r e v i o u s y e a r . S o u r c e : F a c t S e t R e s e a r c h S y s t e m s . . 29 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m S&P 500 INDEX 30 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m SM A L L B U S I N E S S O P T I M I S M I N D E X – G A N G B U S T E R S “I t ’ s a R E C O R D ! S m a l l b u s i n e s s o w n e r s co n t i n u e d t o d e l i v e r a n a m a z i n g pe r f o r m a n c e , t a k i n g t h e I n d e x o f Sm a l l B u s i n e s s O p t i m i s m u p 0 . 9 po i n t s t o a r e c o r d - h i g h o f 1 0 8 . 8 . Th e A u g u s t I n d e x h a s m o r e “ m u s c l e ” th a n a n y p a s t r e a d i n g . T h e “ h a r d ” co m p o n e n t o f t h e I n d e x ( j o b c r e a t i o n pl a n s , j o b o p e n i n g s , c a p i t a l s p e n d i n g pl a n s , i n v e n t o r y p l a n s , a n d e a r n i n g s ) so a r e d t o a h i s t o r i c r e c o r d r e a d i n g o f 10 7 . 9 . ” Ex p a n s i o n p l a n s a t a r e c o r d h i g h . So u r c e : N F I B S m a l l B u s i n e s s E c o n o m i c T r e n d s M o n t h l y R e p o r t ( 8 / 3 1 / 2 0 1 8 ) ht t p s : / / w w w . n f i b . c o m / s u r v e y s / s m a ll- b u s i n e s s - e c o n o m i c - t r e n d s / 31 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m S& P 5 0 0 V S . A C T U A L A N D E S T I M A T E D E A R N I N G S 1 20 1 7 , 2 0 1 8 ( e s t i m a t e d ) a n d 2 0 1 9 ( e s t im a t e d ) b o t t o m - u p S & P 5 0 0 o p e r a t i n g e a r n i n g s p e r sh a r e a s o f A u g u s t 6, 2 0 1 8 : f o r 2 0 1 7 , $ 1 3 1 .9 8 ; f o r 2 0 1 8 ( e ) , $ 1 6 2 . 1 7 ; f o r 2 0 1 9 ( e ) , $ 1 7 8 . 8 0 . S o u r c e s : Yardeni Research, Inc. and Thomson Reuters I/ B / E / S f o r a c t u a l a n d e s t i m a t e d o p e r a t i n g ea r n i n g s f r o m 2 0 1 5 . S t a n d a r d a n d P o o r ’ s f o r i nd e x p r i c e d a t a a s o f S e p t e m b e r 4 , 2 0 1 8 ; a n d a c t u a l o p e r a t i n g e a r ni n g s d a t a t h r o u g h 2 0 1 4 . S& P 5 0 0 E a r n i n g s (l e f t a x i s ) 2018 120191 S& P 5 0 0 (r i g h t a x i s ) 2017 1 02004006008001000120014001600180020002200240026002800300032003400 0102030405060708090 10 0 11 0 12 0 13 0 14 0 15 0 16 0 17 0 18 0 19 0 1988Q4 1989Q2 1989Q4 1990Q2 1990Q4 1991Q2 1991Q4 1992Q2 1992Q4 1993Q2 1993Q4 1994Q2 1994Q4 1995Q2 1995Q4 1996Q2 1996Q4 1997Q2 1997Q4 1998Q2 1998Q4 1999Q2 1999Q4 2000Q2 2000Q4 2001Q2 2001Q4 2002Q2 2002Q4 2003Q2 2003Q4 2004Q2 2004Q4 2005Q2 2005Q4 2006Q2 2006Q4 2007Q2 2007Q4 2008Q2 2008Q4 2009Q2 2009Q4 2010Q2 2010Q4 2011Q2 2011Q4 2012Q2 2012Q4 2013Q2 2013Q4 2014Q2 2014Q4 2015Q2 2015Q42016Q22016Q42017Q22017Q42/9/20182018Q22018Q32019Q12019Q3S&P 500 Index S & P 5 0 0 E a r n i n g s ( $ ) 32 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m ©FactSet Research Systems '5 4 ' 5 6 ' 5 8 ' 6 0 ' 6 2 ' 6 4 ' 6 6 ' 6 8 ' 7 0 ' 7 2 ' 7 4 ' 7 6 ' 7 8 ' 8 0 ' 8 2 ' 8 4 ' 8 6 ' 8 8 ' 9 0 ' 9 2 ' 9 4 ' 9 6 ' 9 8 ' 0 0 ' 0 2 ' 0 4 ' 0 6 ' 0 8 ' 1 0 ' 1 2 ' 1 4 ' 1 6 ' 1 8 -7.0% -7 . 0 % -6.0% -6 . 0 % -5.0% -5 . 0 % -4.0% -4 . 0 % -3.0% -3 . 0 % -2.0% -2 . 0 % -1.0% -1 . 0 % 0.0% 0. 0 % 1.0% 1. 0 % 2.0% 2. 0 % 3.0% 3. 0 % 4.0% 4. 0 % 5.0% 5. 0 % 6.0% 6. 0 % 7.0% 7. 0 % U. S . 1 0 Y e a r T r e a s u r y Y i e l d L e s s F e d F u n d s 7/ 3 0 / 1 9 5 4 T h r o u g h 9 / 2 8 / 2 0 1 8 (T R Y U S 1 0 Y - Y i e l d - F e d e r a l F u n d R a t e , e f f e c t i v e , P e r c e n t - U n i t e d S t a t e s ) Re c e s s i o n P e r i o d s - U n i t e d S t a t e s St e e p y i e l d c u r v e s a r e c o n s i s t e n t w i t h s t r o n g G D P g r o w t h . HI S T O R I C A L 1 0 Y E A R T R E A S U R Y Y I E L D L E S S F E D F U N D S 33 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m PCE – HEADLINE AND CORE '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15'16'17'18 Pe r s o n a l C o n s u m p t i o n E x p e n di t u r e s ( P C E ) , o r t h e P C E pr i c e i n d e x , is a s t a t i s t i c c o m p i l e d a n d r e l e a s e d q u a r t e r l y b y t h e U . S . B u r e a u o f E c o n o m i c A n a l y s i s ( B E A ) | h t t p : / / b e a . g o v / t h a t s y n t h e s i z e s a ho s t o f d a t a , c h i e f a m o n g t h e m t h e U . S . P r o d u c e r a n d C o n s u m e r P r i c e i n d i c e s . T h e P C E p r ice index measur es the price fl u c t u a t i o n s a n d r e l a t e d c o n s u m e r b e h a v i o r f o r a l l d o m e s t i c c o ns u m p t i o n o f d u r a b l e a n d n o n - d u ra b l e g o o d s a n d s e r v i c e s t a r g e t e d to w a r d i n d i v i d u a l s a n d h o u s e h o l d s . T h e P C E " c o r e i n d e x " , h o w e v e r , e x cl u d e s t h e m o r e v o l a t i l e c o m p o n en t s o f f o o d a n d e n e r g y . P e r sonal consumption is divided into two key ca t e g o r i e s : g o o d s a n d s e r v i c e s . T h e c a t e g o r y o f " g o o d s " i s f u r t h e r b r o k e n d o w n i n to " d u r a b l e " g o o d s , w h i c h a r e b i g - t i c k e t i t e m s ( r e f r i g e r a t o r s , t e l e v i s i o n s e t s , c a r s , m o b i l e p h o n e s , et c . ) t h a t w i l l l a s t m o r e t h a n t h re e y e a r s , a n d " n o n -d u r a b l e " g o o d s t h a t are more transitory (e.g., cosmetics, fuel, clothing, etc.). PC E no t o n l y m e a s u r e s u n d e r l y i n g i n f l at i o n a r y p r e s s u r e s , i t a l s o r e f l e c t s w h e t h e r t h e c o n s u m e r i s d o i n g h i s o r h e r p a r t t o p r o p e l e c on o m i c g r o w t h . B e c a u s e t h r e e - f o u r th s o f G r o s s D o m e s t i c P r o d u c t ( G D P ) i s c o n s u m e r sp e n d i n g , t h e P C E r e p o r t i s a useful tool for i nvestors to analyze the overall st a t e a n d d i r e c t i o n o f t h e e c o n o m y . De f i n i t i o n S o u r c e : h t t p s : / / w w w . m e rr i a m - w e b s t e r . c o m / d i c t i o n a r y / p c e 34 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m  Jo b g r o w t h s t r o n g e r f o r l o n g e r i n t h i s r e c o ve r y d u e t o t h e d e p t h o f t h e l a s t r e c e s s i o n  3. 9 % u n e m p l o y m e n t r a t e i s l o w e r t h a n 4 . 4 % p r e - r e c e s s i o n l o w  Jo b g r o w t h w i l l s l o w a s t h e u n e m p l o y m e n t r a t e si n k s l o w e r a n d t h e e c o n o m y r e a c h e s f u l l e m p l o y m e n t NE T N E W J O B F O R M A T I O N A N D T H E U N E M P L O Y M E N T R A T E 3%4%5%6%7%8%9%10% -8 0 0 -6 0 0 -4 0 0 -2 0 0 0 20 0 40 0 60 0 3.70134.00 ©FactSet Research Systems US C h a n g e i n N o n F a r m E m p l o y m e n t & U n e m p l o y m e n t R a t e 9/ 3 0 / 1 9 9 4 t h r o u g h 9 / 2 8 / 2 0 1 8 Em p l o y e e s , N o n f a r m P a y r o l l , S A , T h o u s P e r s o n s - U n i t e d S t a t e s Un e m p l o y m e n t R a t e , U - 3 , S A , P e r c e n t - U n i t e d S t a t e s Re c e s s i o n P e r i o d s - U n i t e d S t a t e s 35 EC O N O M I C & M A R K E T UP D A T E ww w . D a n a I n v e s t m e n t . c o m EQ U I T Y M A R K E T E A R N I N G S & V A L U A T I O N S  Th e S & P 5 0 0 I n d e x w a s u p 7 . 7 1 % i n th e t h i r d q u a r t e r a n d u p 1 0 . 5 6 % ye a r - t o - d a t e f o r 2 0 1 8  Th e I n d e x p r i c e - t o - f o r w a r d e a r n i n g s mu l t i p l e e n d e d t h e t h i r d q u a r t e r a t 17 . 5 x , m o d e s t l y d o w n f r o m o n e y e a r ag o 1 8 . 1 5 x  Ye a r - o v e r - y e a r S & P 5 0 0 I n d e x re t u r n s ( + 1 7 . 9 % ) w e r e d r i v e n ex c l u s i v e l y b y e a r n i n g s g r o w t h  In d e x e a r n i n g s a r e e x p e c t e d t o g r o w in 2 0 1 8 ; a s w e l l a s 2 0 1 9  U. S . E q u i t y m a r k e t s m o v e h i g h e r ev e n d e s p i t e i n c r e a s e d t r a d e te n s i o n s , p o l i t i c a l d r a m a a n d r i s i n g in t e r e s t r a t e s  In v e s t o r s t u r n f o c u s t o U . S . m i d - t e r m el e c t i o n s a n d t h i r d q u a r t e r e a r n i n g s se a s o n 1011121314151617181920 $4 0 $5 0 $6 0 $7 0 $8 0 $9 0 $1 0 0 $1 1 0 $1 2 0 $1 3 0 $1 4 0 $1 5 0 $1 6 0 $1 7 0 $1 8 0 17.50173.84 ©FactSet Research Systems S& P 5 0 0 F o r w a r d O p e r a t i n g E P S a n d P E R a t i o 12 / 2 9 / 2 0 0 6 t h r o u g h 9 / 2 8 / 2 0 1 8 S& P 5 0 0 - E a r n i n g s P e r S h a r e ( L e f t ) ( L e f t ) S& P 5 0 0 ( O p e r a t i n g B a s i s ) - P r i c e t o E a r n i n g s - N T M ( M e a n ) ( R i g h t ) Re c e s s i o n P e r i o d s - U n i t e d S t a t e s 36 ww w . D a n a I n v e s t m e n t . c o m PORTFOLIO PURCHASES Se e I m p o r t a n t D i s c l o s u r e I n f o r m a t i o n VI L L A G E O F T E Q U E S T A G E N E R A L EM P L O Y E E S ’ P E N S I O N F U N D Sy m b o l / S e c u r i t y Tr a d e D a t e S e t t l e D a t e Q u a n t i t y U n i t P r i c e A m o u n t MB B i S h a r e s B a r c l a y s M B S B o n d F u n d 07 / 1 1 / 1 8 0 7 / 1 3 / 1 8 5 2 5 10 3 . 9 8 $ 54,597.33 $ 68 2 1 7 F A A 0 O M N I C O M G P / O M N I C O M C A P ( 3 . 6 0 - 0 4 / 1 5 / 2 6 ) 0 8 / 1 7 / 1 8 0 8 / 2 1 / 1 8 2 5 0 0 0 96 . 9 6 $ 24,239.75 $ 17 2 9 6 7 K G 5 C I T I G R O U P I N C ( 3 . 7 0 - 0 1 / 1 2 / 2 6 ) 08 / 2 9 / 1 8 0 8 / 3 1 / 1 8 1 0 0 0 0 98 . 0 2 $ 9,801.80 $ JN J J o h n s o n & J o h n s o n 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 2 2 13 3 . 5 7 $ 2,938.87 $ AX P A m e r i c a n E x p r e s s C o 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 2 8 10 6 . 9 8 $ 2,995.86 $ PR U P r u d e n t i a l F i n a n c i a l I n c . 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 3 4 98 . 5 6 $ 3,351.55 $ CS C O C i s c o S y s t e m s I n c . 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 1 0 0 47 . 7 0 $ 4,771.00 $ WC G W e l l C a r e H e a l t h P l a n s I n c . 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 1 0 4 30 3 . 6 3 $ 31,579.35 $ TX N T e x a s I n s t r u m e n t s I n c . 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 1 1 0 11 2 . 1 3 $ 12,336.16 $ RC L R o y a l C a r i b b e a n C r u i s e s L t d . 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 1 1 8 12 0 . 6 2 $ 14,234.93 $ T A T & T I n c . 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 1 2 6 31 . 7 0 $ 3,996.08 $ OK E O n e o k I n c . 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 1 8 6 65 . 8 5 $ 12,250.15 $ V V i s a I n c . 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 2 0 0 14 7 . 4 3 $ 29,489.64 $ WM T W a l - M a r t S t o r e s I n c 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 2 6 0 95 . 6 4 $ 24,870.46 $ TG T T a r g e t C o r p 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 3 2 0 88 . 5 4 $ 28,337.76 $ NT A P N e t A p p I n c . 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 3 4 0 87 . 1 5 $ 29,635.56 $ BM Y B r i s t o l - M y e r s S q u i b b C o 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 5 2 0 60 . 1 3 $ 31,274.46 $ FB F a c e b o o k I n c 09 / 2 8 / 1 8 1 0 / 0 2 / 1 8 3 0 16 7 . 0 1 $ 5,010.72 $ RC L R o y a l C a r i b b e a n C r u i s e s L t d . 09 / 2 8 / 1 8 1 0 / 0 2 / 1 8 4 2 12 9 . 8 3 $ 5,453.49 $ CM C S A C o m c a s t C o r p ( A ) 09 / 2 8 / 1 8 1 0 / 0 2 / 1 8 5 0 35 . 6 4 $ 1,782.71 $ TM U S T - M o b i l e I n c 09 / 2 8 / 1 8 1 0 / 0 2 / 1 8 1 9 0 70 . 6 3 $ 13,422.91 $ T A T & T I n c . 09 / 2 8 / 1 8 1 0 / 0 2 / 1 8 4 2 0 33 . 5 7 $ 14,107.09 $ To t a l P u r c h a s e s 360,477.63 $ Pu r c h a s e s R e p o r t 7 / 0 1 / 2 0 1 8 t o 9 / 3 0 / 2 0 1 8 37 ww w . D a n a I n v e s t m e n t . c o m PO R T F O L I O M A T U R I T I E S A N D S A L E S Se e I m p o r t a n t D i s c l o s u r e I n f o r m a t i o n VI L L A G E O F T E Q U E S T A G E N E R A L EM P L O Y E E S ’ P E N S I O N F U N D Sy m b o l / S e c u r i t y Tr a d e D a t e S e t t l e D a t e Q u a n t i t y U n i t P r i c e A m o u n t MA M a s t e r C a r d I n c . - C L A 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 1 2 21 6 . 1 9 $ 2,594.06 $ AA P L A p p l e I n c . 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 1 5 22 8 . 4 5 $ 3,426.47 $ NS C N o r f o l k S o u t h e r n C o r p 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 1 6 17 4 . 2 9 $ 2,788.36 $ CV X C h e v r o n C o r p 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 2 8 11 8 . 8 1 $ 3,326.14 $ MS F T M i c r o s o f t C o r p 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 3 0 11 1 . 3 0 $ 3,338.50 $ XO M E x x o n M o b i l C o r p 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 3 6 80 . 3 7 $ 2,892.74 $ VL O V a l e r o E n e r g y C o r p 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 3 6 12 0 . 1 7 $ 4,325.42 $ BR B r o a d r i d g e F i n a n c i a l S o l u t i o n s I n c . 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 4 0 13 5 . 9 8 $ 5,438.49 $ SY Y S y s c o C o r p 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 6 4 75 . 1 9 $ 4,811.25 $ ST T S t a t e S t r e e t C o r p 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 6 5 87 . 3 9 $ 5,679.29 $ LE A L e a r C o r p 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 1 3 8 16 0 . 0 7 $ 22,087.78 $ LR C X L a m R e s e a r c h C o r p . 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 1 5 8 16 9 . 8 4 $ 26,831.26 $ WH W y n d h a m H o t e l s & R e s o r t s I n c 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 2 3 3 56 . 2 9 $ 13,112.64 $ PM P h i l i p M o r r i s I n t e r n a t i o n a l 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 2 6 0 77 . 7 6 $ 20,212.34 $ TE L T E C o n n e c t i v i t y L t d 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 2 8 4 90 . 2 3 $ 25,620.04 $ AB B V A b b V i e I n c . 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 3 1 0 94 . 1 8 $ 29,191.92 $ BA X B a x t e r I n t e r n a t i o n a l 09 / 0 4 / 1 8 0 9 / 0 6 / 1 8 4 1 0 74 . 9 2 $ 30,710.16 $ MA M a s t e r C a r d I n c . - C L A 09 / 2 8 / 1 8 1 0 / 0 2 / 1 8 1 2 22 3 . 3 5 $ 2,679.98 $ BR B r o a d r i d g e F i n a n c i a l S o l u t i o n s I n c . 09 / 2 8 / 1 8 1 0 / 0 2 / 1 8 1 6 13 2 . 3 2 $ 2,116.88 $ MS F T M i c r o s o f t C o r p 09 / 2 8 / 1 8 1 0 / 0 2 / 1 8 2 4 11 4 . 1 2 $ 2,738.48 $ HD H o m e D e p o t I n c . 09 / 2 8 / 1 8 1 0 / 0 2 / 1 8 2 6 20 7 . 7 3 $ 5,400.41 $ CD W C D W C o r p 09 / 2 8 / 1 8 1 0 / 0 2 / 1 8 3 4 88 . 8 3 $ 3,019.52 $ CS C O C i s c o S y s t e m s I n c . 09 / 2 8 / 1 8 1 0 / 0 2 / 1 8 4 0 48 . 4 9 $ 1,938.84 $ TX N T e x a s I n s t r u m e n t s I n c . 09 / 2 8 / 1 8 1 0 / 0 2 / 1 8 1 1 0 10 6 . 7 2 $ 11,736.85 $ WY N D W y n d h a m W o r l d w i d e C o r p 09 / 2 8 / 1 8 1 0 / 0 2 / 1 8 2 3 3 43 . 2 8 $ 10,079.85 $ To t a l S a l e s 246,097.67 $ Sa l e s R e p o r t 7 / 0 1 / 2 0 1 8 t o 9 / 3 0 / 2 0 1 8 Sy m b o l / S e c u r i t y Tr a d e D a t e S e t t l e D a t e Q u a n t i t y U n i t P r i c e A m o u n t 25 4 0 6 7 A H 4 D I L L A R D S I N C ( 7 . 1 3 - 0 8 / 0 1 / 1 8 ) 08 / 0 1 / 1 8 0 8 / 0 1 / 1 8 2 5 0 0 0 10 0 . 0 0 $ 25,000.00 $ To t a l M a t u r i t i e s 25,000.00 $ Ma t u r i t y R e p o r t 7 / 0 1 / 2 0 1 8 t o 9 / 3 0 / 2 0 1 8 38 ww w . D a n a I n v e s t m e n t . c o m PO R T F O L I O G A I N S / L O S S E S O N S A L E S Se e I m p o r t a n t D i s c l o s u r e I n f o r m a t i o n VI L L A G E O F T E Q U E S T A G E N E R A L EM P L O Y E E S ’ P E N S I O N F U N D Se c u r i t y / I D / M a t u r i t y D a t e / C o u p o n Pu r c h a s e Da t e S e l l D a t e S h a r e s / P a r C o s t B a s i s P r o c e e d s G a i n / L o s s Sh o r t T e r m Gain/Loss LongTerm Ap p l e I n c . A A P L 0 1 / 2 9 / 0 9 0 9 / 0 4 / 1 8 1 5 1 9 9 $ 3 , 4 2 6 $ - $ 3 , 2 2 8 $ Ab b V i e I n c . A B B V 0 2 / 1 1 / 1 3 0 9 / 0 4 / 1 8 3 1 0 1 3 , 4 9 0 $ 2 9 , 1 9 2 $ - $ 1 5 , 7 0 2 $ Ba x t e r I n t e r n a t i o n a l B A X 0 6 / 2 7 / 1 7 0 9 / 0 4 / 1 8 4 1 0 2 5 , 1 7 8 $ 3 0 , 7 1 0 $ - $ 5 , 5 3 2 $ Br o a d r i d g e F i n a n c i a l S o l u t i o n s I n c . B R 0 1 / 0 6 / 1 5 0 9 / 0 4 / 1 8 4 0 1 , 8 0 6 $ 5 , 4 3 8 $ - $ 3 , 6 3 2 $ Br o a d r i d g e F i n a n c i a l S o l u t i o n s I n c . B R 0 1 / 0 6 / 1 5 0 9 / 2 8 / 1 8 1 6 7 2 2 $ 2 , 1 1 7 $ - $ 1 , 3 9 4 $ CD W C o r p C D W 1 1 / 2 4 / 1 4 0 9 / 2 8 / 1 8 3 4 1 , 1 7 3 $ 3 , 0 2 0 $ - $ 1 , 8 4 6 $ Cis c o S y s t e m s I n c . C S C O 1 2 / 2 1 / 1 7 0 9 / 2 8 / 1 8 4 0 1 , 5 4 5 $ 1 , 9 3 9 $ 3 9 4 $ - $ Ch e v r o n C o r p C V X 0 9 / 2 4 / 1 4 0 9 / 0 4 / 1 8 2 8 3 , 0 9 7 $ 3 , 3 2 6 $ - $ 2 2 9 $ Ho m e D e p o t I n c . H D 1 2 / 2 1 / 1 7 0 9 / 2 8 / 1 8 2 6 4 , 8 9 3 $ 5 , 4 0 0 $ 5 0 7 $ - $ Le a r C o r p L E A 1 2 / 0 3 / 1 5 0 9 / 0 4 / 1 8 1 3 8 1 6 , 9 3 1 $ 2 2 , 0 8 8 $ - $ 5 , 1 5 7 $ La m R e s e a r c h C o r p . L R C X 0 9 / 2 9 / 1 5 0 9 / 0 4 / 1 8 1 5 8 1 3 , 1 8 7 $ 2 6 , 8 3 1 $ ( 3 3 7 ) $ 1 3 , 9 8 2 $ Ma s t e r C a r d I n c . - C L A M A 0 9 / 2 7 / 1 7 0 9 / 0 4 / 1 8 1 2 1 , 7 8 8 $ 2 , 5 9 4 $ 8 0 6 $ - $ Ma s t e r C a r d I n c . - C L A M A 1 2 / 2 1 / 1 7 0 9 / 2 8 / 1 8 1 2 1 , 8 1 0 $ 2 , 6 8 0 $ 8 7 0 $ - $ Mi c r o s o f t C o r p M S F T 0 5 / 2 6 / 1 5 0 9 / 0 4 / 1 8 3 0 1 , 3 9 6 $ 3 , 3 3 9 $ - $ 1 , 9 4 3 $ Mi c r o s o f t C o r p M S F T 0 5 / 2 6 / 1 5 0 9 / 2 8 / 1 8 2 4 1 , 1 1 7 $ 2 , 7 3 8 $ - $ 1 , 6 2 2 $ No r f o l k S o u t h e r n C o r p N S C 0 6 / 1 4 / 1 8 0 9 / 0 4 / 1 8 1 6 2 , 4 5 6 $ 2 , 7 8 8 $ 3 3 3 $ -$ Ph i l i p M o r r i s I n t e r n a t i o n a l P M 08 / 3 0 / 1 7 0 9 / 0 4 / 1 8 2 6 0 27 , 8 7 5 $ 20 , 2 1 2 $ (6 1 2 ) $ (7,050)$ St a t e S t r e e t C o r p S T T 07 / 2 5 / 1 7 0 9 / 0 4 / 1 8 6 5 6, 0 1 9 $ 5, 6 7 9 $ - $ (339)$ Sy s c o C o r p S Y Y 09 / 2 6 / 1 6 0 9 / 0 4 / 1 8 6 4 3, 1 3 7 $ 4, 8 1 1 $ - $ 1,674 $ TE C o n n e c t i v i t y L t d T E L 03 / 2 3 / 1 8 0 9 / 0 4 / 1 8 2 8 4 27 , 9 7 4 $ 25 , 6 2 0 $ (2 , 3 5 4 ) $ -$ Te x a s I n s t r u m e n t s I n c . T X N 09 / 0 4 / 1 8 0 9 / 2 8 / 1 8 1 1 0 12 , 3 3 6 $ 11 , 7 3 7 $ (5 9 9 ) $ -$ Va l e r o E n e r g y C o r p V L O 03 / 0 1 / 1 7 0 9 / 0 4 / 1 8 3 6 2, 4 7 3 $ 4, 3 2 5 $ - $ 1,852 $ Wy n d h a m H o t e l s & R e s o r t s I n c W H 02 / 1 3 / 1 7 0 9 / 0 4 / 1 8 2 3 3 10 , 4 6 2 $ 13 , 1 1 3 $ - $ 2,650 $ Wy n d h a m W o r l d w i d e C o r p W Y N D 02 / 1 3 / 1 7 0 9 / 2 8 / 1 8 2 3 3 8, 6 0 5 $ 10 , 0 8 0 $ - $ 1,475 $ Ex x o n M o b i l C o r p X O M 02 / 1 1 / 1 3 0 9 / 0 4 / 1 8 3 4 3, 0 0 3 $ 2, 7 3 2 $ - $ (271)$ Ex x o n M o b i l C o r p X O M 09 / 2 8 / 1 0 0 9 / 0 4 / 1 8 2 12 4 $ 16 1 $ - $ 36 $ To t a l S e l l 2, 6 3 0 1 9 2 , 7 9 6 24 6 , 0 9 8 (9 9 4 ) 54,295 DI L L A R D S I N C 2 5 4 0 6 7 A H 4 08 / 1 7 / 1 6 0 8 / 0 1 / 1 8 2 5 , 0 0 0 27 , 3 4 4 $ 25 , 0 0 0 $ - $ (2,344)$ To t a l M a t u r i t i e s 25 , 0 0 0 27 , 3 4 4 25 , 0 0 0 - (2,344) Sh o r t T e r m L o n g T e r m Ma t u r i t y a n d S a l e s R e p o r t 7 / 0 1 / 2 0 1 8 t o 9 / 3 0 / 2 0 1 8 39 Report as of: 09/28/2018 Dana Investment Advisors, Inc. PORTFOLIO HOLDINGS Portfolio: 1087comp - Tequesta General Employees Pension Fund - Comp 45,000 912828M80 US TREASURY N/B 2% Due 11/30/2022 96.35 43,358.22 1.73 300.00 2.08 45,000 912828RR3 US TREASURY N/B 2% Due 11/15/2021 97.38 43,818.75 1.75 337.50 2.05 Treasury Bonds 1,780 MBB iShares Barclays MBS Bond Fund 103.33 183,927.40 7.33 .00 2.47 Total Taxable Bond Funds 183,927.40 7.33 .00 2.47 Taxable Bond Funds 492.38 31410BGA6 FN 884093 6% Due 05/01/2036 105.62 520.07 .02 2.38 5.68 71,919.71 3138ERJD3 FN AL9259 3.5% Due 08/01/2031 100.54 72,308.65 2.88 202.77 3.48 Total FNMA - Fixed Rate Mortgages 72,828.72 2.90 205.15 3.50 FNMA - Fixed Rate Mortgages 382.95 3128P7CU5 FG C90983 5.5% Due 08/01/2026 106.45 407.65 .02 1.70 5.17 467.03 3128P7CP6 FG C90978 6% Due 07/01/2026 107.00 499.72 .02 2.26 5.61 505.74 3128P7BG7 FG C90939 5.5% Due 12/01/2025 106.45 538.36 .02 2.24 5.17 77,950.72 3128MMWC3 FG G18642 3.5% Due 04/01/2032 100.56 78,383.74 3.12 219.78 3.48 Total FHLMC - Fixed Rate Mortgages 79,829.47 3.18 225.98 3.51 FHLMC - Fixed Rate Mortgages Total Mortgage Bonds 152,658.19 6.08 431.13 3.51 Mortgage Bonds 25,000 585055BS4 MEDTRONIC INC 3.5% Due 03/15/2025 99.24 24,810.00 .99 36.46 3.53 25,000 68217FAA0 OMNICOM GP/OMNICOM CAP 3.6% Due 04/15/2026 94.98 23,744.25 .95 412.50 3.79 25,000 482480AE0 KLA-TENCOR CORP 4.65% Due 11/01/2024 102.53 25,631.75 1.02 481.15 4.54 25,000 086516AL5 BEST BUY CO INC 5.5% Due 03/15/2021 104.51 26,128.50 1.04 57.29 5.26 25,000 583334AE7 WESTROCK MWV LLC 7.375% Due 09/01/2019 103.64 25,910.75 1.03 148.52 7.12 25,000 30219GAF5 EXPRESS SCRIPTS HOLDING 3.9% Due 02/15/2022 100.52 25,130.75 1.00 121.88 3.88 25,000 37045XAL0 GENERAL MOTORS FINL CO 4.25% Due 05/15/2023 99.52 24,879.00 .99 398.44 4.27 Total Corp Industrials 176,235.00 7.02 1,656.24 4.65 Corp Industrials 25,000 026874CU9 AMERICAN INTL GROUP 4.875% Due 06/01/2022 103.99 25,998.25 1.04 402.86 4.69 25,000 94974BFJ4 WELLS FARGO & COMPANY 3.45% Due 02/13/2023 98.20 24,550.50 .98 112.60 3.51 25,000 38141GGQ1 GOLDMAN SACHS GROUP INC 5.25% Due 07/27/2021 104.57 26,142.50 1.04 229.69 5.02 25,000 0258M0DP1 AMERICAN EXPRESS CREDIT 2.25% Due 08/15/2019 99.57 24,892.75 .99 70.31 2.26 25,000 6174467P8 MORGAN STANLEY 5.5% Due 07/24/2020 103.74 25,934.50 1.03 252.08 5.30 10,000 172967KG5 CITIGROUP INC 3.7% Due 01/12/2026 97.05 9,704.80 .39 80.17 3.81 25,000 46625HMN7 JPMORGAN CHASE & CO 3.9% Due 07/15/2025 99.95 24,988.50 1.00 203.13 3.90 25,000 06051GFB0 BANK OF AMERICA CORP 4.125% Due 01/22/2024 101.55 25,388.25 1.01 194.79 4.06 Total Corp Financials 187,600.05 7.48 1,545.63 4.11 Corp Financials Total Corporate Bonds 363,835.05 14.50 3,201.87 4.37 Corporate Bonds 45,000 76116FAD9 RFCO STRIP PRINC 0% Due 07/15/2020 95.34 42,901.70 1.71 .00 .00 25,000 313586RC5 FANNIE MAE 0% Due 10/09/2019 97.25 24,312.68 .97 .00 .00 Total FNMA Zero Coupon Agency 24,312.68 .97 .00 .00 FNMA Zero Coupon Agency Total Agency Bonds 67,214.38 2.68 .00 .00 Agency Bonds Bonds 000009 Cash - Money Fund 23,161.26 .92 .00 1.48 Total Short Term Investments 23,161.26 .92 .00 1.48 Short Term Investments Cash Shares/ PAR Identifier Description Price Market Value Pct. Assets Income Accrued Cur. Yield See Important Disclosure Information 40 Report as of: 09/28/2018 Dana Investment Advisors, Inc. PORTFOLIO HOLDINGS Portfolio: 1087comp - Tequesta General Employees Pension Fund - Comp 520 BMY Bristol-Myers Squibb Co 62.08 32,281.60 1.29 .00 2.58 216 JNJ Johnson & Johnson 138.17 29,844.72 1.19 .00 2.61 156 AMGN Amgen Inc.207.29 32,337.24 1.29 .00 2.55 BAX Baxter International 77.09 .00 .00 77.90 .00 820 PFE Pfizer Inc.44.07 36,137.40 1.44 .00 3.09 176 SYK Stryker Corp 177.68 31,271.68 1.25 82.72 1.06 Health Care 650 CFG Citizens Financial Group Inc.38.57 25,070.50 1.00 .00 2.80 240 JPM JPMorgan Chase 112.84 27,081.60 1.08 .00 2.84 214 AXP American Express Co 106.49 22,788.86 .91 .00 1.46 880 BAC Bank Of America Corp 29.46 25,924.80 1.03 .00 2.04 1,240 KEY Keycorp 19.89 24,663.60 .98 .00 3.42 1,160 STWD Starwood Property Trust Inc 21.52 24,963.20 .99 556.80 8.92 264 PRU Prudential Financial Inc.101.32 26,748.48 1.07 .00 3.55 500 MS Morgan Stanley 46.57 23,285.00 .93 .00 2.58 Total Financials 200,526.04 7.99 556.80 3.47 Financials 290 OKE Oneok Inc.67.79 19,659.10 .78 .00 4.87 198 CVX Chevron Corp 122.28 24,211.44 .96 .00 3.66 284 XOM Exxon Mobil Corp 85.02 24,145.68 .96 .00 3.86 194 VLO Valero Energy Corp 113.75 22,067.50 .88 .00 2.81 Total Energy 90,083.72 3.59 .00 3.77 Energy 238 KMB Kimberly-Clark Corp 113.64 27,046.32 1.08 238.00 3.52 350 TSN Tyson Foods Inc. (Cl A)59.53 20,835.50 .83 .00 2.02 260 WMT Wal-Mart Stores Inc 93.91 24,416.60 .97 .00 2.21 350 SYY Sysco Corp 73.25 25,637.50 1.02 .00 1.97 Total Consumer Staples 97,935.92 3.90 238.00 2.47 Consumer Staples 124 HD Home Depot Inc.207.15 25,686.60 1.02 .00 1.99 630 DHI D.R. Horton Inc.42.18 26,573.40 1.06 .00 1.19 370 BBY Best Buy Co Inc.79.36 29,363.20 1.17 166.50 2.27 168 PVH Phillips-Van Heusen 144.40 24,259.20 .97 .00 .10 320 TGT Target Corp 88.21 28,227.20 1.12 .00 2.90 160 RCL Royal Caribbean Cruises Ltd.129.94 20,790.40 .83 82.60 2.15 Total Consumer Discretionary 154,900.00 6.17 249.10 1.80 Consumer Discretionary 850 CMCSA Comcast Corp (A)35.41 30,098.50 1.20 .00 2.15 880 T AT&T Inc.33.58 29,550.40 1.18 .00 5.96 25 GOOGL Alphabet Inc. Class A 1,207.08 30,177.00 1.20 .00 .00 410 TMUS T-Mobile Inc 70.18 28,773.80 1.15 .00 .00 172 FB Facebook Inc 164.46 28,287.12 1.13 .00 .00 Total Communication Services 146,886.82 5.85 .00 1.64 Communication Services Domestic Equity Strategy Stocks 45,000 912828VS6 US TREASURY N/B 2.5% Due 08/15/2023 97.98 44,089.47 1.76 140.63 2.55 45,000 912828G38 US TREASURY N/B 2.25% Due 11/15/2024 95.84 43,129.71 1.72 379.69 2.35 45,000 912828K74 US TREASURY N/B 2% Due 08/15/2025 93.70 42,166.40 1.68 112.50 2.13 Total Treasury Bonds 216,562.55 8.63 1,270.32 2.23 Total Bonds 984,197.57 39.22 4,903.32 3.11 Shares/ PAR Identifier Description Price Market Value Pct. Assets Income Accrued Cur. Yield See Important Disclosure Information 41 Report as of: 09/28/2018 Dana Investment Advisors, Inc. PORTFOLIO HOLDINGS Portfolio: 1087comp - Tequesta General Employees Pension Fund - Comp 530 EXC Exelon Corp 43.66 23,139.80 .92 .00 3.16 680 CNP Centerpoint Energy Inc 27.65 18,802.00 .75 .00 4.01 Total Utilities 41,941.80 1.67 .00 3.54 Utilities 310 PLD ProLogis Inc 67.79 21,014.90 .84 .00 2.83 138 AMT American Tower Corp 145.30 20,051.40 .80 109.02 2.07 Total Real Estate 41,066.30 1.64 109.02 2.46 Real Estate 410 STLD Steel Dynamics Inc 45.19 18,527.90 .74 76.88 1.66 166 PKG Packaging Corp Of America 109.69 18,208.54 .73 131.14 2.88 Total Materials 36,736.44 1.46 208.02 2.26 Materials 126 MA MasterCard Inc.-CL A 222.61 28,048.86 1.12 .00 .45 570 INTC Intel Corp 47.29 26,955.30 1.07 .00 2.54 286 MCHP Microchip Technology Inc.78.91 22,568.26 .90 .00 1.85 340 NTAP NetApp Inc.85.89 29,202.60 1.16 .00 1.86 270 MSFT Microsoft Corp 114.37 30,879.90 1.23 .00 1.61 216 BR Broadridge Financial Solutions Inc.131.95 28,501.20 1.14 112.52 1.47 156 AAPL Apple Inc.225.74 35,215.44 1.40 .00 1.29 200 V Visa Inc.150.09 30,018.00 1.20 .00 .56 290 DXC DXC Technology Co.93.52 27,120.80 1.08 55.10 .81 600 CSCO Cisco Systems Inc.48.65 29,190.00 1.16 .00 2.71 326 CDW CDW Corp 88.92 28,987.92 1.16 .00 .94 Total Information Technology 316,688.28 12.62 167.62 1.45 Information Technology 510 DAL Delta Air Lines Inc.57.83 29,493.30 1.18 .00 2.42 178 CAT Caterpillar Inc.152.49 27,143.22 1.08 .00 2.26 80 BA Boeing Co 371.90 29,752.00 1.19 .00 1.84 340 WM Waste Management Inc.90.36 30,722.40 1.22 .00 2.06 170 NSC Norfolk Southern Corp 180.50 30,685.00 1.22 .00 1.77 Total Industrials 147,795.92 5.89 .00 2.06 Industrials 122 UNH Unitedhealth Group Inc.266.04 32,456.88 1.29 .00 1.35 104 WCG WellCare Health Plans Inc.320.49 33,330.96 1.33 .00 .00 Total Health Care 227,660.48 9.07 160.62 1.90 Total Domestic Equity Strategy 1,502,221.72 59.86 1,689.18 2.21 Total Stocks 1,502,221.72 59.86 1,689.18 2.21 Dividends Accrued 1,689.18 Total Portfolio with Accruals & Receivables 2,516,173.05 Interest Accrued 4,903.32 Total Portfolio 2,509,580.55 Paydown Receivable 0.00 Shares/ PAR Identifier Description Price Market Value Pct. Assets Income Accrued Cur. Yield See Important Disclosure Information 42 ww w . D a n a I n v e s t m e n t . c o m DA N A I N V E S T M E N T AD V I S O R S DISCLOSURE Da n a I n v e s t m e n t A d v i s o r s , I n c . i s a n i n d e p e n d e n t f e de r a l l y r e g i s t e r e d i n v e s t m e n t a dv i s e r p r o v i d i n g e q u i t y a n d f i x e d i n c o m e i n v e s t m e n t m a n a g e m e n t services to a b r o a d r a n g e o f c l i e n t s . A l l d a t a i s p r e s e n t e d i n U .S . D o l l a r s . P o r t f o l i o C h a r a c t e r i s t i c s , P e r f o r m a n c e R e p o r t , P o r t f o l i o H o l d i n g s , a n d S e c t o r D i stributions reflect ap p l i c a b l e i n v e s t m e n t h o l d i n g s a s o f m a r k e t c l o s e o n t h e d a t e i n d i c a t e d . R e t ur n s p r e s e n t e d a r e e x c l u s i v e o f i n v e s t m e n t m a n a g e m e n t a n d c u s t o d i a l f e e s, and ne t o f t r a n s a c t i o n c o s t s . I n v e s t m e n t m a n a g e m e n t f e e s w o u l d r e d u c e t h e r e t ur n s p r e s e n t e d , f o r e x a m p l e : o n a o n e - m i l l i o n d o l l a r p o r t f o l i o w i t h a n a d v i sory fee of .7 5 % e a r n i n g a 1 0 % r e t u r n , t h e t o t a l c o m p o u n d e d a d v i s o r y f e e o v e r a f i v e y e a r p e r i o d w o u l d b e $ 5 0 , 3 6 8 . T h e r e s u l t i n g a v e r a g e a n n u a l r e t u r n f o r t h e p e r i o d wo u l d t h e r e f o r e b e 9 . 1 7 % . A l l r e t u r n s w e r e c a l c u l a t e d o n a t i m e w e i g h t e d t o t al r e t u r n b a s i s . P e r f o r m a n c e d o e s i n c l u d e t h e a c c r u a l o f i n c o m e a n d t h e re i n v e s t m e n t o f d i v i d e n d s a n d i n t e r e s t r e c e i v e d . Du r i n g v a r i o u s m a r k e t c y c l e s , t h e s t r a t e g i e s d i s c u s s e d h e r e i n h a v e d e m o n s t r a t e d p o r t f o l i o c h a r a c t e r i s t i c s a n d r e t u r n s t h a t h a v e b e e n b o t h m o r e a n d less volatile th a n t h a t o f t h e c o m p a r a b l e i n d e x . I n d i c e s s h o w n w e r e s e l e c t e d b e c a u s e t h e y de m o n s t r a t e d a b r o a d r a n g e o f c h a r a c t er i s t i c s , s o m e o f t h e s e c h a r a c t e r i s tics being de e m e d u s e f u l f o r l i m i t e d c o m p a r i s o n p u r p o s e s o n l y . H i s t o r i c a l p e r f o r m a n c e r e s u l t s f o r i n v e s t m e n t i n d i c e s a n d / o r c a t e g o r i e s h a v e b e e n p r o v i d e d f o rg e n e r a l co m p a r i s o n p u r p o s e s o n l y , a n d g e n e r a l l y d o n o t r e f l e c t t h e d e d u c t i o n o f t r a n sa c t i o n a n d / o r c u s t o d i a l c h a r g e s , t h e d e d u c t i o n o f a n i n v e s t m e n t m a n a g e ment fee, no r t h e i m p a c t o f t a x e s , t h e i n c u r r e n c e o f w h i c h w o u l d h a v e t h e e f f e c t o f d e c r e a s i n g h i s t o r i c a l p e r f o r m a n c e r e s u l t s . I t s h o u l d n o t b e a s s u m e d t h a t y o u r account ho l d i n g s d o o r w i l l c o r r e s p o n d d i r e c t l y t o a n y c o m p a r a t i v e i n d i c e s . Wh i l e d a t a c o n t a i n e d h e r e i n w a s g a t h e r e d f r o m s o u r c e s d e e m e d r e l i a b l e , t h e ac c u r a c y o f t h e d a t a p r e s e n t e d c a n n o t b e g u a r a n t e e d . P l e a s e r e m e m b e r t h a t past pe r f o r m a n c e m a y n o t b e i n d i c a t i v e o f f u t u r e r e s u l t s . D i f f e r e n t t y p e s o f i n v e st m e n t s i n v o l v e v a r y i n g d e g r e e s o f r i s k , a n d t h e r e c a n b e n o a s s u r a n c e t h a t the future pe r f o r m a n c e o f a n y s p e c i f i c i n v e s t m e n t o r i n v e s t m e n t s t r a t e g y m a d e r e f e r e nc e t o d i r e c t l y o r i n d i r e c t l y i n t h i s r e p o r t , w i l l b e p r o f i t a b l e , e q u a l a n y corresponding in d i c a t e d h i s t o r i c a l p e r f o r m a n c e l e v e l ( s ) , o r w i l l c o n t i n u e t o b e s u i t a b l e f o r y o u r p o r t f o l i o . D u e t o v a r i o u s f a c t o r s , i n c l u d i n g c h a n g i n g m a r k e t c o nditions, the co n t e n t o f t h i s r e p o r t m a y n o l o n g e r b e r e f l e c t i v e of c u r r e n t o p i n i o n s , p o s i t i o n s , i n v e s t m e n t s o r a c c o un t a l l o c a t i o n s . M o r e o v e r , y o u s h o u l d n o t a s s u me that any di s c u s s i o n o r i n f o r m a t i o n c o n t a i n e d i n t h i s r e p o r t s e r v e s a s t h e r e c e i p t o f , o r a s a s u b s t i t u t e f o r , p e r s o n a l i z e d i n v e s t m e n t a d v i c e f r o m D a n a I n v e s t m ent Advisors, In c . Da n a I n v e s t m e n t A d v i s o r s i s n o t a c u s t o d i a n . C l i e n t s s h o u l d b e r e c e i v i n g d e t a i l e d s t a t e m e n t s f r o m t h ei r c u s t o d i a n a t l e a s t q u a r t e r l y . W h i l e D a n a I n v estment Ad v i s o r s r e g u l a r l y r e c o n c i l e s t o c u s t o d i a n i n f o r m a t i o n , w e e n c o u r a g e c l i e nt s t o r e v i e w t h e i r c u s t o d i a n s t a t e m e n t ( s ) . T h e m a r k e t p r i c e s s h o w n o n t h ese pages re p r e s e n t t h e l a s t r e p o r t e d s a l e o n t h e s t a t e d r e p o r t d a t e a s t o l i s t e d s e c u r i ti e s o r t h e b i d p r i c e i n t h e c a s e o f o v e r - t h e - c o u n t e r q u o t a t i o n s . P r i c e s o nb o n d sa n d so m e o t h e r i n v e s t m e n t s a r e b a s e d o n r o u n d l o t p r i c e qu o t a t i o n s a n d a r e f o r e v a l u a t i o n p u r p o s e s o n l y a n d m a y n o t r e p r e s e n t a c t u a l m a r k e t v a l u e s . B o n d s s old on a n o d d l o t b a s i s ( l e s s t h a n $ 1 m i l l i o n ) m a y h a v e a d o l l a r p r i c e l o w e r t h a n t h e r o u n d l o t q u o t e . W h e r e n o r e g u l a r m a r k e t e x i s t s , p r i c e s s h o w n a r e e s t i m a t es by so u r c e s c o n s i d e r e d r e l i a b l e b y D a n a I n v e s t m e n t A d v i s o r s , I n c . W h i l e t h e p r i c e s a r e o b t a i n e d f r o m s o u r c e s w e c o n s i d er r e l i a b l e , w e c a n n o t g u a r a n t e e t hem. Pl e a s e r e m e m b e r t o c o n t a c t D a n a I n v es t m e n t A d v i s o r s , I n c . a t ( 8 0 0 ) 7 6 5 - 0 1 5 7 , o r P . O . B o x 1 0 6 7 B r o o k f i e l d , W I 5 3 0 0 8 w i t h a n y q u e s t i o n s o r i f t h e r e a r e a n y ch a n g e s i n y o u r p e r s o n a l f i n a n c i a l s i t u a t i o n o r i n v e s t m e n t o b j e c t i v e s f o r t h e p u r p o s e o f r e v i e w i n g , e v a l u a t i n g , a n d r e v i s i n g a n y p r e v i o u s r e c o m m e n dations or in v e s t m e n t s e r v i c e s . P l e a s e a l s o a d v i s e D a n a i f y o u w o u l d l i k e t o i m p o s e , a d d , o r m o d i f y a n y r e a s o n a b l e r e s t r i c t i o n s t o y o u r a c c o u n t . A c o p y o f D a n a ’ s c urrent Fo r m A D V B r o c h u r e d e t a i l i n g a c o m p l e t e l i s t o f D a n a ’ s a d v i s o r y s e r v i c e s a nd f e e s c o n t i n u e s t o r e m a i n a v a i l a b l e f o r y o u r r e v i e w u p o n r e q u e s t . Cu r r e n t L i s t o f H o l d i n g s : T h e m a r k e t p r i c e s s h o w n o n t h e s e p a g e s r e p r e s e n t t he l a s t r e p o r t e d s a l e o n t h e s t a t e d r e p o r t d a t e a s t o l i s t e d s e c u r i t i e s o r t h eb i dp r i c e in t h e c a s e o f o v e r - t h e - c o u n t e r q u o t a t i o n s . P r i c e s o n b o n d s a n d s o m e o t h e r i n ve s t m e n t s a r e b a s e d o n r o u n d l o t p r i c e qu o t a t i o n s a n d a r e f o r e v a l u a t i o n pu r p o s e s o n l y a n d m a y n o t r e p r e s e n t a c t u a l m a r k e t v a l u e s . B o n d s s o l d o n a n o d d lo t b a s i s ( l e s s t h a n $ 1 m i l l i o n ) m a y h a v e a d o l l a r p r i c e l o w e r t h a n t h e r o u n dl o t qu o t e . W h e r e n o r e g u l a r m a r k e t e x i s t s , p r i c e s s h o w n a r e e s t i m a t e s b y s o u r c e s co n s i d e r e d r e l i a b l e b y D a n a I n v e s t m e nt A d v i s o r s . W h i l e t h e p r i c e s a r e o b tained fr o m s o u r c e s w e c o n s i d e r r e l i a b l e , w e c a n n o t g u a r a n t e e t h e m . D a n a I n v e s t m e n t A d v i s o r s i s n o t a c u s t o d i a n . C l i e n t s s h o u l d b e r e c e i v i n g d e t a i l e d s t a t e ments fr o m th e i r c u s t o d i a n a t l e as t q u a r t e r l y . W h i l e D a n a I n v e s t m e n t A d v i s o r s r e gu l a r l y r e c o n c i l e s t o c u s t o d i a n i n f o r m a t i o n , w e e n c o u r a g e c l i e n t s t o r e v iew their cu s t o d i a n s t a t e m e n t ( s ) . 43 www.DanaInvestment.comwww.DanaInvestment.com10 / 2 2 / 2 0 1 8 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2018 Total Return Gross of Fees 14.55%5.85% -33.13%19.46% 18.78%2.94%16.55% 33.56% 15.81%-0.88% 7.14%28.37%6.67% Total Return Net of Fees 13.93%5.25% -33.50%18.81% 18.09%2.36%15.86% 32.80% 15.20%-1.36% 6.49%27.63%6.20% Benchmark Return 15.80%5.49% -37.00%26.46% 15.06%2.11%16.00% 32.39% 13.69%1.38%11.96% 21.83% 10.56% Composite 36 Month Standard Deviation 7.63% 8.12%14.60% 17.77% 20.26% 17.57% 15.48% 12.55%9.22%10.18% 10.68% 10.21%9.34% Benchmark 36 Month Standard Deviation 6.82% 7.68%15.08% 19.63% 21.85% 18.71% 15.09% 11.94%8.97%10.47% 10.59%9.92% 9.06% Number of Portfolios 296 410 383 323 238 245 238 320 433 287 253 241 242 Internal Dispersion 0.77% 1.13% 1.31% 1.44% 0.55% 0.59% 0.63% 0.92% 0.96% 0.53% 0.40% 0.40%N/A Composite Assets (US$ millions)610.0 639.5 400.2 415.6 460.2 506.1 579.5 785.9 979.8 1,022.2 870.2 943.0 951.5 % of Bundled Fee Assets 21.8% 21.8% 22.4% 27.9% 24.8% 24.8% 21.7% 20.8%18.1% 17.4% 19.4% 17.3% 18.8% Strategy Assets (US$ millions)989.6 1,025.2 679.9 646.6 689.6 700.1 867.7 1,461.2 1,982.6 2,611.4 2,550.4 2,803.2 3,034.6 Total Firm Assets (US$ millions)2,777.2 2,752.9 2,307.2 2,424.8 2,638.4 3,061.2 3,264.2 3,664.9 4,091.7 4,490.7 4,769.4 4,865.7 4,604.9 Total Entity Assets (US$ millions)2,814.9 2,794.3 2,327.2 2,667.0 2,854.5 3,294.4 3,622.2 4,486.3 5,383.3 6,634.5 7,172.0 7,538.4 7,495.2 Strategy Assets and Total Entity Assets include applicable composite assets, wrap program assets and model portfolio assets and are presented as supplemental information. Dana does not have final trading authority on model portfolio assets, which are excluded from both Composite Assets and Total Firm Assets. Dana Investment Advisors, Inc. (“Dana”) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Dana has been independently verified for the periods January 1, 1992 through December 31, 2017. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. • Definition of Firm: Dana Investment Advisors, Inc. is a SEC regis- tered independent investment management firm established in 1980 and is not affiliated with any parent organization. Dana man- ages a variety of equity, fixed income and balanced portfolios for primarily U.S. institutional, individual and mutual fund clients. • Composite Creation Date: June 29, 1999. • Composite Definition: The Dana Large Cap Equity composite includes all fee-paying, discretionary equity portfolios that invest in U.S. equities with the goal of providing long-term capital apprecia- tion within a well-diversified large cap core strategy. The composite does not have a minimum size criterion for membership. A com- plete list of composite descriptions is available upon request. • Benchmark Description: The benchmark for the Dana Large Cap Equity composite is the S&P 500 Index. • Composite Construction: Prior to October 1, 2009, the composite included the Large Cap Equity segment of balanced accounts. Cash was allocated to these segments based on the average cash position of the Large Cap Equity “only” portfolios in the composite. Composite assets within the Large Cap Equity segment of balanced accounts at calendar year end were 28.9% in 2006, 26.6% in 2007 and 18.0% in 2008. • Performance and Fees: Valuations are computed and performance is reported in U.S. dollars. Gross-of-fees returns are presented before investment management and custodial fees but after all trading expenses. The composite contains both traditional commis- sion paying and bundled-fee (i.e. asset based pricing) portfolios. Trading costs are allocated to bundled-fee portfolios at actual asset based rates. If actual asset based trading costs cannot be readily identified, the entire bundled fee (which may include costs for administration, investment management, custody, asset allocation, etc.), net of Dana’s investment management fees, is deducted from the gross return. Prior to April 1, 2008, transaction costs were al- located to bundled fee trades at a per share commission rate equal to Dana’s preferred list of non-directed institutional brokers. Net- of-fees returns are calculated by deducting actual Dana investment management fees from the monthly gross-of-fees returns. Dana’s investment management fees may vary based upon the differ- ences in size, composition and servicing needs of client accounts. A complete description of Dana’s investment advisory fee schedule is contained in the Firm’s Form ADV Part 2A, a copy of which is available upon request. Policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request. • Standard Deviation: The 36 month annualized standard deviation measures the variability of the monthly gross-of-fees composite and the benchmark monthly returns for the period. • Internal Dispersion: Dispersion is calculated using the equal- weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the entire year. Past performance is not indicative of future results. DANA LARGE CAP EQUITY STRATEGY DISCLOSURE INFORMATION 44 20 7 0 0 S w e n s o n D r i v e Su i t e 4 0 0 Wa u k e s h a , W i s c o n s i n 5 3 1 8 6 Ma i l i n g A d d r e s s : P. O . B o x 1 0 6 7 Br o o k f i e l d , W i s c o n s i n 5 3 0 0 8 - 1 0 6 7 80 0 - 7 6 5 - 0 1 5 7 ww w . D a n a I n v e s t m e n t . c o m