HomeMy WebLinkAboutDocumentation_Pension General_Tab 03_08/03/2009_.:,_~;
General Employees'
Pension Fund
As of June 30, 2009
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SUITE 250
P.O. Box 1067
BROOKFIELD, WISCONSIN 53008-1067
www.DANAINVESTMENT.COM
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Table of Contents
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Signs of Recovery
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- S&P 500 is up over 45% from the March 9th low.
- Retail sales recovering from the 4th Quarter: now positive.
- Durable goods orders are growing.
- Bank stocks have doubled from their lows.
Goldman Sachs Group Inc. {GS)
- Existing home sales 31 Oac 2008 to :i1 Jul 2009 ~Da~!y~ High: 166x20
U 5. Do;ta~ Lo•.u 5q.t30
have rebounded in some
markets and prices are
stabilizing.
- Personal consumption
expenditures grew in
the 1St Quarter after
contracting for 6
months.
L~ct:t61.630
;ir~n~'!r~'`~
,~II~ ft
N~ ~
~ ~ ,~!
r
r
;~L ~ •
Jan Feb hoar Apr h9ay Jun Jul
160
130
zo
100
ao
60
- Volatility, a measure of - -- _ _ __ -- _ _-- _ _- -- __ _- -
JPMorgan Chase & Co (JPM} High; 39,4'0
market risk, is at a 10 ~'JDCo o~g t~ 31 Jw ~OOQ IDailyJ
Las•: 13960
fact: 38 3 ~ 0
month low. So
- Consumer confidence
has rebounded.
a~G ~; ~~ .
~j }~ ~ ao
r ~iE,
f i ~~ I 4. l
(~ ~ ~ 2(]
Jan Feb h9ar Apr AAay Jun Jul
Village of Tequesta General Employees' Pension Fund
Obtain a reasonable total rate ofreturn, with reasonable consistency while attempting to protect the assets
against the inroads of inflation. Performance over 3-5 year market cycle to be in excess of composite indices.
Investment Objectives:
Managers perfomrance to be in the top 40% ofMobius Universe. Total Retum to be equal to actuarial
earnings assumption and equal or exceed CPI plus 3%over3-5 year cycle.
Comparative Indices: ~ 60`% SBcP 500 / 40% Lehman GovtJCredit intermediate
~Iot nx>re than 5% of funds assets invested in any one issuing company or aggregate investment in one
company exceed 5% of outstanding capital stock ofthe company. Fquity -Investments in stock. not to exceed
Investment Restrictions:
(d)% at cost or 70% at market. Listed on National Exchange. Fixed -Standard & Poor's Investment Grade or
Moody's investment grade. Value of bonds in single corporation shall not exceed 10"/° ofthe total fund.
Total Retum
'' _
~~
Fiscal 3rd Qtr 2009 *
Fiscal Year-to-Date * Avera e Annual Since
g
hiccntion
',
~
' ~ i ~ " • ih;?~
~~
~~ Blend:
60% S&P 500 10.29% -7.90% -0.47%
,~,~~
.~~ 40% G/C Intermediate
k~~:
;r: Employees' Fixed Income
_ _ Govt/Credit Intermediate
-0.26'%. 6.06°/~
1.67% 6.53%
Employees' Large Cap Core 13.13'% -22.20%
S&P 500 15.93% -19.47%
~.~"'~•
c Employees' Large Cap Growth 11A0°/~ -17.37%
' ,
~ ;
_,:
Russell 1000 Growth
16.32%
-13.89%
°~~~
~ Employees' International 22.62'% -20.48%
~
~` MSCI EAFE 25.85% -13.16%
Fiscal = 9-30
.~ ~ ~F
* Unannualized
v
~ Village of Tequesta General Employees' Pension Fund
~9 i 1 i ~ ~1
Equity
.
53.8"-~~
Fi!~ed Inconx
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Equity Allocation Fixed Income Allocation
.~i'lle Y' ~ot~1111 at1'
Dana L:u'ge B~uxls &mds Mortgage
(':q~ (irMCtil Receivable Bonds
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Income ~ ~i ~ 733;,
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Money
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~-International ~>ni{s Taxeble Bond
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7
Second Quarter Review
DANA INVESTMENT ADVISORS, INC.
Dana Large Cap core
The Dana Large Cap Equity strategy had adouble-digit return of +13.2% during the second quarter, though this trailed
the +15.9% return of the S&P 500 (the index's best return in over a decade). While our portfolio holdings outperformed the
broader market on many fundamental measures (earnings surprises, dividend increases, valuations, ROE and others),
the market was buying beaten-down stocks on hopes of a swift economic recovery. Nowhere was this more evident than the
Consumer Discretionary and Financial sectors, where our portfolios had weak relative performance, despite strong returns
from many of our Financial holdings (Goldman Sachs up +39.4%, MetLife up +31.8%, JP Morgan up +292%). Relative
strength in our portfolios came in the Energy, Industrial and Material sectors. We also saw strength in the Technology
sector with positions in Apple Inc. up +35.5% and Microsoft Corporation up +30.1 %.
State Street Gorp. (STY)
Goldman Sachs Group (GS)
General Dynamics Gorp (GD)
Union Pacific Corp. (UNP)
Transocean Ltd. (RIG)
Precision Castparts Corp. (PCP)
GameStop Corp. (GME)
Broadridge Financial. (BR)
Bristol-Myers Squibb Go. (BMI~
Wal-Mart Stores. (WMT)
VF Corp. (VFG)
Q2 Sector Contributors
^ Energy -strong results from oil service and exploration and production holdings,
relative underweight in underperforming integrated oil segment
^ Industrials -aerospace /defense, industrial machinery holdings outperformed
Q2 Sector Detractors
^ Consumer Discretionary -underweight higher beta retail and media, poor
performance from GameStop
^ Information Technology - lack of exposure to semiconductors, underperformance
in Cisco and Broadridge vs. respective industry peers
^ Materials -portfolio holdings up +33.5% vs. +35.5% for sector, underweight in
major bank category
Selected Additions
^ McGraw-Hill (MHP) -corporate debt issuance improving, demand for S&P
market analytics, strong competitive positioning results in high margins
^ Ross Stores Inc. (ROSY) -discount retailer prospering despite recession as
consumers "trade down", rising estimate trends & solid free cash flow generation
^ CME Group Inc. (CME) -strong barriers to entry with little exposure to credit risk
or housing price declines, leverage to rebounding commodity prices
Selected Deletions
^ Nike Inc. (NKE) -valuation stretched relative to peer group with unattractive
earnings growth, margins trending lower
^ VF Corp (VFC) -consecutive negative earnings surprises, disappointing
guidance, underperformance relative to peers
^ Sysco (SYY) -declining consumer restaurant spending pressuring earnings
growth & margins, negative EPS revision trends
^ Nasdaq OMX Group (NDAQ) -negative revision trends, CME offered more fa-
vorable risk/reward prospects
Avg. Market Cap ($billions) 63.0 71.3
Median Market Cap ($billions) 23.9 6.9
Dividend Yield 2.38% 2.99%
3 Year Return on Equity 21.7 17.6
Price/Earnings (12month trailing) 12.5 13.6
Trailing 3 Years Earnings Growth 16.3 12.3
PEG Ratio 0.8 1.1
Alpha (0.85) 1.82 3.83
Beta 0.91 0.92 0.86
Batting Average .417 .550 .675
Info Ratio 0.07 0.66 0.86
Dana Investment Advisors, Inc. 115800 ~'. Bluemound Rd., Suite 250, Brookfield, WI 53005
1-800-765-0157 I www.danainvestment.com I info@danainvestrncnt.com
Apple Inc 3.1
Oracle Corp 2.4
Sempra Energy 2.4
International Business Machines 2.4
Mckesson Corp 2.4
Microsoft Corp 2.3
Occidental Petroleum Corp 2.3
Becton Dickinson & Co 2.2
Cisco Systems Inc 2.1
CME Group Inc
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Large S&P
Core 500
Consumer Discretionary 8.1 9.0
Consumer Staples 11.9 12.0
Energy 12.9 12.5
Financials 13.5 13.6
Health Care 14.1 14.0
Industrials 10.3 9.9
Information Technology 18.6 18.4
Materials 3.3 3.2
Telecomm Services 3.5 3.6
Utilities 3.9 3.9
IMPORTANT INFORMATION
Performance
20
15
3 10
d
~ 5
d
N 0
.~
7
~ -5
a
N -10
0
c~ -15
-0.22
-20
-25
-30
2Q2009 YTD 1 year 3 year 5 year Since Inception
Dana Large Cap Core ~ S&P500
612.9/99-12/31/99 2000 2001 2002 2003 2004 2005 2006 2007 2008
Total Return (Gross of Fees) 8.59% 8.78% 0.74% -19.07% 30.50% 12.20% 13.12% 14.55% 5.85% -33.2%
Benchmark Return 9.41% -9.10% -11.88% -22.10% 28.68% 10.88% 4.89% 15.80% 5.49% -37.0%
Number of Portfolios in Composite 9 23 55 143 145 186 219 296 410 367
Composite Assets at Period End (US $ millions) 8.9 63.6 104.1 160.5 268.5 366.5 485.0 610.0 639.5 413.3
Percent of Firm Assets 0.8% 4.2% 5.5% 7.6% 13.0% 15.9% 17.3% 21.7% 22.9% 17.8%
Composite Dispersion (%) N/A 1.29% 1.60% 0.80% 0.89% 0.59% 0.80% 0.77% 1.13% 1.64%
Total Firm Assets (US $ millions) 1,186.3 1,528.0 1,883.7 2,099.9 2,064.8 2,307.6 2,810.7 2,814.9 2,794.3 2,327.2
Dana Investment Advisors, Inc. has prepared and presented this report in compliance with the Global Investment Pertormance Standards
(GIPSY""). The CFA Institute has not been involved with the preparation or review of this report.
NOTES Dana Investment Advisors, Inc. (Dana) is an independent investment management firm established in 1980. Dana manages a variety of
equity, fixed income and balanced portfolios for primarily U.S. institutional clients. Dana maintains a complete list and description of composites, which is
available upon request.
The benchmark for the Large Cap Equity composite is the Standard & Poor's 500 Index. (Market Capitalization Weighted). The composite was created
June 29, 1999. Performance is calculated in US Dollars utilizing atime- weighted total rate of return. Total return for the composite is represented by the
asset-weighted returns of the portfolios within the composite. Trade-Date Valuation is used.
The Large Cap Equity composite does not have a minimum size criterion for composite membership. All fee-paying, discretionary accounts with similar
investment objectives are included. The composite includes the equity segment of balanced accounts. Cash is allocated to these segments based on the
average cash position of the "equity only" portfolios in the composite. Leverage is not used in this composite as a means to generate higher returns. There
are two non-fee paying portfolios in the composite.
The dispersion of annual returns is measured by the standard deviation of equal-weighted portfolio returns represented within the composite for the full year.
The standard deviation presented is based upon annualized quarterly standard deviation of returns. The standard deviation of the annual returns presented
for the time period 2000 to 2008 is 18.00% for the composite and 19.16% for the Standard & Poor's 500 Index.
In March of 2006, Dana added a portfolio manager to the strategy's lead portfolio management team. Effective July 1, 2007, three portfolio manager/analysts
transitioned from being Dana employees to being sub-advisors assisting in the management of some composite portfolios. In addition, a lead portfolio
manager rejoined Dana as an employee in February of 2008.
Performance results are calculated and presented before investment management and custodial fees, but after all applicable trading costs. The composite
contains both traditional commission paying and bundled-fee portfolios. Transaction costs are allocated to bundled-fee portfolios at the current prevailing
per share commission rate charged by our preferred list of non-directed institutional brokers. Bundled fee portfolios comprise 19.4% of composite assets
as of 12/31/08. Dana investment management fees may vary based upon the differences in size, composition and servicing needs of client accounts.
Investment management fees would reduce the returns presented, for example: a $1,000,000 portfolio with an advisory fee of 0.75% per annum earning
a 10% annual return would have paid a total compounded advisory fee of $50,368 over a five year period. The resulting average annual return for the
period would be 9.17%. Past performance is not indicative of future results. A complete description of Dana's investment advisory fee schedule is
contained in the Firm's Form ADV Part II, a copy of which is available upon request.
Dana [nvestYnent Advisors, Inc. 115800 W. Blucnunuid Kd., Suite X50, Brookfield,
1-800-'765-0157 I wtvw.danainrestmcntcom I infoadarrliuvesnncnt.com
Dana Large Core Portfolio Characteristics
Consistent Portfolio Characteristics
Lower Valuation + Higher Growth + Better Profitability vs. S&P 500
15 - 13.6
12.2
10 ~
Dana LC S&P 500
_: ~'~~~s~,'
20 17.3
15 - 12.3
-y
10
Dana LC S8~P 500
~ -- - - --
100 , 71
75 62.4
50 21.9
25 - 6.9
0-
Dana LC S8~P 500
Actual Composite Holdings as of June 30, 2009
1('
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~~~ ~~ ~eCOnd Quarter Revlew
~:
DANA INVESTMENT ADVISORS, INC.
.-
~ Dana Large Cap Growth
i
Dana's Large Growth composite posted a +11.82% return in the second quarter, trailing the benchmark Russell 1000 Growth
index. Large Growth and Large Value returns were comparable in Q209, with returns of +16.3% and +16.7% respectively
for the Russell 1000 Growth and 1000 Value indices. Large Growth has outperformed Large Value on a year-to-date basis
by over 14% through Q209. Investors are typically willing to assign higher valuations to companies with more predictable
growth characteristics, especially in recessionary environments where growth is hard to find. We retain a favorable view for
~ the outlook for growth stocks, as growth currently does not command a valuation premium to cyclical alternatives.
Pactiv Corp. (PTV)
Valmont Industries Inc. (VMI)
priceline.com (PCLN)
General Dynamics (GD)
Adobe Systems (ADBE)
Transocean Ltd. (RIG)
Q2 Sector Contributors
^ Materials -Pactiv up almost +50%, Mosaic also outperformed the rest of the
Agricultural Chemicals Group
^ Industrials -aerospace /defense overweight, Valmont Industries strong performer
^ Consumer Staples -most holdings modestly outperformed their respective
industry peers, Colgate +21%, Philip Morris Intl +24%
Y~~ q2 Sector Detractors
Gamestop Corp. (GME) ^ Consumer Discretionary -underweight higher beta retail and media, poor
Cephalon Inc. (CEPH) performance from Gamestop
Panera Bread Co. (PNRA) ^ Health Care -biotech holdings down an average of -6% vs. +3% overall indus-
C.R. Bard Inc. (BCR) try, medical technology holdings also lagged peers in quarter
Genz}Rne Corp. (GENZ)
Bank of New York Mellon (BK) • Financials -portfolio holdings up +10% vs. +32% for sector, underweight in
major conglomerates, Bank of New York lagged major bank peers
Selected Additions
^ Priceline.com (PCLN) -global online travel company benefitting from
increasingly price-conscious travelers, attractive valuation with solid growth in
sales, earnings & free cash flow, positive estimate revision & surprise trends
^ McCormick & Co. (MKC) -leading player inspices/seasonings continues to
experience steady growth despite recession, margin expansion & solid free
cash flow trends, stock trading near low end of 10 year historical valuation range
^ Medco Health Solutions Inc. (MHS) -leading pharmacy benefit manager
has strong tailwind from generic drug trends, high teens EPS growth with
margin expansion & steadily rising free cash flow
Selected Deletions
^ Sysco (SYY) -declining consumer spending on eating out pressuring
earnings growth & margins, negative EPS revision trends
^ Dentsply International (XRAY) -leading maker/distributor of dental products
experiencing worse than anticipated fundamentals as dentists cut cap ex
spending, negative EPS surprise and downward estimate revision trends
^ MasterCard Inc. (MA) -strong performer's valuation not as attractive
compared to original buy point, traded into BRCM which offerred superior
risk/reward proposition
Avg. Market Cap ($billions) 42.8 65.1
Median Market Cap ($billions) 21.0 3.6
Dividend Yield 1.48% 1.78%
3 Year Return on Equity 25.1% 26.0%
Price/Earnings (12month trailing) 13.9 15.5
Trailing 3 Years Earnings Growth 26.3% 19.1
PEG Ratio 0.5 0.8
Alpha (0.60) 3.04 3.36
Beta 0.89 0.89 0.88
Batting Average .575 .700 .636
Info Ratio 0.08 0.74 0.61
Dana Investment Advisors, Inc. 115800 W. Bluemound Rd., Suite 250, Brookfield, WI 53005
1-800-765-0157 I www.danainvesrinent.com I info@d nainvestment.com
Apple Inc 2.4
Google Inc-CIA 2.4
Broadcom Corp - Class A 2.2
Microchip Technology Inc 2.1
Oracle Corp 2.1
Qualcomm Inc. 2.1
Hewlett-Packard Co 2.1
Adobe Systems Inc 2.1
EMC Corp 2.0
FPL Group Inc 2.0
Large Russell
Growth 1000 Growth
Consumer Discretionary 10.0 10.4
Consumer Staples 16.5 17.1
Energy 4.4 4.2
Financials 4.7 5.3
Health Care 17.7 17.5
Industrials 10.0 9.7
Information Technology 31.2 30.6
Materials 3.6 3.8
Telecommunication 0.6 0.6
Utilities 1.0 1.0
IMPORTANT INFORMATION
Performance
20
15
c
~ 10
°' 5
~ 0
d
N
'~ -5
'c -10
c
a -15
o -20
~ -25
-30
2Q2009 YTD 1 year 3 year 5 year Since Inception
Dana Large Cap Growth ^ Russell 1000 Growth
_ 3/31/01-12/31/01 2002 2003 2004 2005 2006 2007 2008
Total Return (Gross of Fees) 6.47% -28.37% 34.91 % 12.92% 11.26% 12.50% 15.82% -36.72%
Benchmark Return -12.63% -27.88% 29.75% 6.30% 5.36% 9.07% 11.81% -38.44%
Number of Portfolios in Composite 1 1 1 1 1 1 22 66
Composite Assets at End of Period (US $ millions) 21.9 18.2 21.4 21.5 21.0 22.5 47.7 66.1
Percent of Firm Assets 1.2% 0.9% 1.0% 0.9% 0.7% 0.8% 1.7% 2.8
Composite Dispersion (%) N/A N/A N/A N/A N/A N/A N/A* 0.53%
Total Firm Assets (US $ millions) 1,883.7 2,099.9 2,064.8 2,307.6 2,810.7 2,814.9 2,794.3 2,327.2
'Only one account was in the composite for the entire year
Dana Investment Advisors, Inc. has prepared and presented this report in compliance with the Global Investment Performance Standards
(GIPSY""). The CFA Institute has not been involved with the preparation or review of this report.
NOTES Dana Investment Advisors, Inc. (Dana) is an independent investment management firm established in 1980. Dana manages a variety of
equity, fixed income and balanced portfolios for primarily U.S. institutional clients. Dana maintains a complete list and description of composites, which is
available upon request.
The benchmark for the Large Cap Growth composite is the Russell 1000 Growth Index. (Market Capitalization Weighted).
The composite was created February 23, 2001. Performance is calculated in US Dollars utilizing atime-weighted total rate of return. Total return for the
composite is represented by the asset-weighted returns of the portfolios within the composite. Trade Date valuation is used.
The Dana Large Cap Growth composite does not have a minimum size criterion for composite membership. All fee-paying, discretionary accounts with
similar investment objectives are included. The composite does not include the equity segment of balanced accounts. Leverage is not used in this
composite as a means to generate higher returns. There are no non-fee paying portfolios in the composite.
The dispersion of annual returns is measured by the standard deviation ofasset-weighted portfolio returns represented within the composite for the full year.
The standard deviation presented is based upon annualized quarterly standard deviation of returns. The standard deviation of the annual returns presented
for the time period 2002 to 2008 is 23.91 % for the composite and 22.13% for the Russell 1000 Growth Index.
Performance results are calculated and presented before investment management and custodial fees, but after all applicable trading costs. The
composite contains both traditional commission paying and bundled-fee portfolios. Transaction costs are allocated to bundled-fee portfolios at the current
prevailing per share commission rate charged by our preferred list ofnon-directed institutional brokers. Bundled fee portfolios comprise 10.4% of composite
assets as of 12/31/08. Dana investment management fees may vary based upon the differences in size, composition and servicing needs of client accounts.
Investment management fees would reduce the returns presented, for example: a $1,000,000 portfolio with an advisory fee of 0.75% per annum earning
a 10% annual return would have paid a total compounded advisory fee of $50,368 over a five year period. The resulting average annual return for the
period would be 9.17%. Past performance is not indicative of future results. A complete description of Dana's investment advisory fee schedule is
contained in the Firm's Form ADV Part II, a copy of which is available upon request.
Dana Investment Ad~~sors, Inc. 11800 W. Bluemound Rd., Suite 250, Brookfield, WI 53005
1-800-765-0157 I www.danainvcstmenta>m I info@danainvestmcntcom
Dana Large Growth Portfolio Characteristics
Consistent Portfolio Characteristics
Lower Valuation + Higher Growth + Better Profitability vs. Russell 1000G
20.0
15.5
15.0 13.9
-- -
10.0
Dana Large Russell 1000
Growth Growth
20.0 18.6
16.0
15.0 -
Dana Large Russell 1000
Growth Growth
20.0 1
13.9 15.0
15.0
~~
10.0
Dana Large Russe111000
Growth Growth
~~~ ~ ~~
30.0 ~ 26.3
25.0 ~
19.1
20.0 !,
15.0 - - --- ;;
Dana Large Russe111000
Growth Growth
25.0 24.8
23.7
~° ;~.
- _-:~ ..
20.0
Dana Large Russe111000
Growth Growth
100.0
75.0 1 65.1
42.8
50.0 - .21.0
25.0 - 3.6
0.0
Dana Large Russe111000
Growth Growth
Actual Composite Holdings as of June 30, 2009
1
. rt;
Dana Investment Advisors, Inc. ~~"
PORTFOLIO HOLDINGS
Portfolio: ? 0$7comp - T'equesta General Employees Pension Fund - As of 06/30/2009
Comp
Shares/ PAR Identifier Description Price Market Value Pct. Assets Accruals Cur.
Owed Yield
Cash
Short Term Investments
000009 Cash -Money Fund 19,203.19 1.73 .00 .01
Total Short Term Investments 19,203.19 1.73 .00 .01
Bonds
Agency Bonds
10,000 31359MU68 FANNIE MAE 5.375% Due 08/15/2009 100.64 10,063.76 .91 201.56 5.34
10,000 31359MYN7 FANNIE MAE 4.25% Due 08/15/2010 103.93 10,393.20 .94 159.38 4.09
5,000 31359MZL0 FANNIE MAE 4.75% Due 12/15/2010 105.62 5,281.10 .48 9.90 4.50
7,000 31359MHK2 FANNIE MAE 5.5% Due 03/15/2011 107.28 7,509.60 .68 112.29 5.13
10,000 31359MZ30 FANNIE MAE 5% Due 10/15/2011 108.00 10,799.70 .97 104.17 4.63
10,000 3128X26U4 FREDDIE MAC 4.35% Due 04/27/2012 106.69 10,668.51 .96 76.12 4.08
3,000 3134A4SA3 FREDDIE MAC 4.5% Due 01/15/2013 107.91 3,237.39 .29 61.87 4.17
10,000 3134A4TZ7 FREDDIE MAC 4.5% Due 07/15/2013 107.69 10,768.50 .97 206.25 4.18
5,000 3134A4UK8 FREDDIE MAC 4.875% Due 11/15/2013 109.01 5,450.25 .49 30.47 4.47
8,000 31359MA45 FANNIE MAE 5% Due 04/15/2015 109.50 8,760.39 .79 83.33 4.57
8,000 31359M7X5 FANNIE MAE 5% Due 05/11/2017 108.92 8,713.52 .79 54.44 4.59
Total Agency Bonds 91,645.92 8.27 1,099.78 4.53
Corporate Bonds
5,000 459745FP5 INTL LEASE FINANCE CORP 5% Due 04/15/2010 92.50 4,625.00 .42 52.08 5.41
5,000 500255AM6 KOHLS CORPORATION 6.3% Due 03/01/2011 104.47 5,223.56 .47 104.13 6.03
5,000 06423AA06 BANK ONE CORP 5.9% Due 11/15/2011 104.50 5,225.00 .47 36.88 5.65
5,000 587499A46 MERCANTILE SAFE DEP & TR 5.7% Due 11/15/2011 102.13 5,106.47 .46 35.63 5.58
5,000 054303A05 AVON PRODUCTS INC 4.625% Due 05/15/2013 102.00 5,100.00 .46 28.91 4.53
5,000 38141GD04 GOLDMAN SACHS GROUP INC 5.25% Due 10/15/2013 102.38 5,118.75 .46 54.69 5.13
5,000 774341AA9 ROCKWELL COLLINS 4.75% Due 12/01/2013 101.00 5,050.00 .46 19.13 4.70
5,000 90333WAB4 US BANK NA 6.3% Due 02/04/2014 109.09 5,454.38 .49 127.75 5.78
5,000 40429CCR1 HSBC FINANCE CORP 5.25% Due 04/15/2015 95.00 4,750.03 .43 54.69 5.53
5,000 548661CH8 LOWES COMPANIES INC 5% Due 10/15/2015 105.50 5,275.00 .48 52.08 4.74
5,000 92976GAE1 WACHOVIA BANK NA 5.6% Due 03/15/2016 95.75 4,787.50 .43 81.67 5.85
5,000 494368688 KIMBERLY-CLARK 6.125% Due 08/01/2017 109.63 5,481.25 .49 126.75 5.59
5,000 48121CYK6 JP MORGAN CHASE BANK NA 6% Due 10/01/2017 97.38 4,868.75 .44 74.17 6.16
10,000 06739FFS5 BARCLAYS BANK PLC 6.75% Due 05/22/2019 99.69 9,969.03 .90 71.25 6.77
Total Corporate Bonds 76,034.72 6.86 919.81 5.61
Mortgage Bonds
8,867.60 3128P7BG7 FG C90939 5.5% Due 12/01/2025 103.45 9,173.35 .83 39.29 5.32
8,120.83 3128P7CP6 FG C90978 6% Due 07/01/2026 104.72 8,504.38 .77 39.25 5.73
9,552.97 3128P7CU5 FG C90983 5.5% Due 08/01/2026 103.45 9,882.34 .89 42.32 5.32
9,310.30 314108GA6 FN 884093 6% Due 05/01/2036 104.68 9,745.75 .88 45.00 5.73
Total Mortgage Bonds 37,305.82 3.37 165.86 5.52
Taxable Bond Funds
311 SHY Ishares Barclays 1-3Yr Trs Bd 83.71 26,033.81 2.35 .00 3.31
1,100 IEI Ishares Lehman 3-7 YearTrea 110.79 121,869.00 11.00 .00 2.89
50 GVI iShares Lehman Intermediate 104.10 5,205.00 .47 .00 4.12
335 MBB Ishares Lehman Mbs Fixed-Rat 105.28 35,268.80 3.18 .00 4.32
Total Taxable Bond Funds 188,376.61 17.00 .00 3.25
Treasury Bonds
15,000 912828HS2 US TREASURY N/B 2% Due 02/28/2010 101.03 15,154.69 1.37 99.46 1.98
15,000 912828EJ5 US TREASURY N/B 4.25% Due 10/15/2010 104.63 15,693.75 1.42 132.38 4.06
10,000 912828FW5 US TREASURY N/B 4.625% Due 10/31/2011 107.66 10,765.63 .97 76.66 4.30
15,000 912828HT0 US TREASURY N/B 2.75% Due 02/28/2013 102.86 15,428.91 1.39 136.75 2.67
Page 1 of 4
• ~~
Dana Investment Advisors, Inc. ~~"
PORTFOLIO HOLDINGS
'ort~olio: ~~$7comp - Tequesta General Employees Pension Fund - As of 06/30/2009
;omp
Shares/ PAR Identifier Description Price Market Value Pct. Assets Accruals Cur.
Owed Yield
5,000 912828DV9 US TREASURY N/B 4.125% Due 05/15/2015 106.67 5,333.59 .48 25.78 3.87
5,000 912828EE6 US TREASURY N/B 4.25% Due 08/15/2015 107.20 5,360.16 .48 79.25 3.96
5,000 912828FF2 US TREASURY N/B 5.125% Due 05!15/2016 112.06 5,603.13 .51 32.03 4.57
15,000 912828GH7 US TREASURY N/B 4.625% Due 02/15/2017 108.70 16,305.47 1.47 258.72 4.25
7,000 912828HH6 US TREASURY N/B 425% Due 11/15/2017 105.95 7,416.72 .67 37.19 4.01
Total Treasury Bonds 97,062.05 8.76 878.22 3.58
Total Bonds 490,425.12 44.27 3,063.67 4.09
cocks
Domestic Equity Strategy
151 ABT
246 ACN
148 ADBE
65 ARG
122 AXP
180 ABC
73 AMGN
55 APA
72 AAPL
193 T
247 BK
139 BAX
108 BDX
116 BMC
175 BMY
175 BRCM
200 BR
58 CVX
440 CSCO
25 CME
88 KO
54 CL
58 COP
43 BCR
232 CVS
163 DTV
220 EBAY
649 EMC
55 XOM
116 FDO
107 FE
75 FLS
104 FMC
76 FPL
294 GME
92 BGC
131 GD
300 GE
72 GIS
52 GENZ
76 GILD
34 GS
11 GOOG
233 HPO
Abbott Laboratories 47.04 7,103.04 .64 .00 3.40
Accenture Ltd-CIA 33.46 8,231.16 .74 .00 1.49
Adobe Systems Inc 28.30 4,188.40 .38 .00 .00
Airgas Inc 40.53 2,634.45 .24 .00 1.78
American Express Co 23.24 2,835.28 .26 21.96 3.10
AmerisourceBergen Corp 17.74 3,193.20 .29 .00 1.13
Amgen Inc 52.94 3,864.62 .35 .00 .00
Apache Corp 72.15 3,968.25 .36 .00 .83
Apple Inc 142.43 10,254.96 .93 .00 .00
AT&T Inc 24.84 4,794.12 .43 .00 6.60
Bank Of New York Mellon Corp 29.31 7,239.57 .65 .00 1.23
Baxter International 52.96 7,361.44 .66 36.14 1.96
Becton Dickinson & Co 71.31 7,701.48 .70 .00 1.85
BMC Software Inc 33.79 3,919.64 .35 .00 .00
Bristol-Myers Squibb Co 20.00 3,500.00 .32 .00 6.20
Broadcom Corp - Class A 24.79 4,338.25 .39 .00 .00
Broadridge Financial Solutions 16.58 3,316.00 .30 14.00 1.69
Chevron Corp 66.25 3,842.50 .35 .00 3.92
Cisco Systems Inc 18.65 8,206.00 .74 .00 .00
CME Group Inc 311.12 7,778.00 .70 .00 1.48
Coca-Cola Co/The 47.99 4,223.12 .38 36.08 3.42
Colgate-Palmolive Co 70.74 3,819.96 .34 .00 2.49
Conocophillips 42.06 2,439.48 22 .00 4.47
CR Bard Inc 74.45 3,201.35 29 .00 .91
CVS Caremark Corp 31.87 7,393.84 .67 .00 .96
DirecTV Group Inc/The 24.71 4,027.73 .36 .00 .00
Ebay Inc 17.13 3,768.60 .34 .00 .00
EMC Corp 13.10 8,501.90 .77 .00 .00
Exxon Mobil Corp 69.91 3,845.05 .35 .00 2.40
Family Dollar Stores Inc 28.30 3,282.80 .30 15.66 1.91
Firstenergy Corp 38.75 4,146.25 .37 .00 5.68
Flowserve Corp 69.81 5,235.75 .47 20.25 1.55
FMC Carp 47.30 4,919.20 .44 13.00 1.06
FPL Group Inc 56.86 4,321.36 .39 .00 3.32
Gamestop Corp-Class A 22.01 6,470.94 .58 .00 .00
General Cable Corp 37.58 3,457.36 .31 .00 .00
General Dynamics Corp. 55.39 7,256.09 .65 49.78 2.74
General Electric Co 11.72 3,516.00 .32 30.00 3.41
General Mills Inc 56.02 4,033.44 .36 .00 3.36
Genzyme Corp 55.67 2,894.84 .26 .00 .00
Gilead Sciences Inc 46.84 3,559.84 .32 .00 .00
Goldman Sachs Group Inc 147.44 5,012.96 .45 .00 .95
Google Inc-CIA 421.59 4,637.49 .42 .00 .00
Hewlett-Packard Co 38.65 9,005.45 .81 18.64 .83
Page2of4
Ortf0~l0: 10$~COmp
Comp
Shares/ PAR Identifier
Dana Investment Advisors, Inc.
PORTFOLIO HOLDINGS
-~et~l,le~~a General Employees I~en~ion Fund -
Description Price Market Value Pct.
ssets 1 ~~
=~~
As of06l30/2009
Accruals Cur.
Owed Yield
195 HNZ HJ Heinz Co 35.70 6,961.50 .63 81.90 4.71
128 HON Honeywelllnternationallnc 31.40 4,019.20 .36 .00 3.85
76 IBM International Business Machine 104.42 7,935.92 .72 .00 2.11
2,558 IWF Ishares Russell 1000 Growth 41.03 104,954.74 9.47 .00 1.52
70 JNJ Johnson & Johnson 56.80 3,976.00 .36 .00 3.45
110 JPM JP Morgan Chase 34.06 3,746.60 .34 .00 .59
169 KR Kroger Co 22.05 3,726.45 .34 .00 1.63
41 LMT Lockheed Martin Corp 80.65 3,306.65 .30 .00 2.83
116 MKC McCormick and Co. Inc. 32.29 3,745.64 .34 .00 2.97
113 MCD McDonald'S Corp 57.49 6,496.37 .59 .00 3.48
237 MHP Mcgraw-Hill Companies Inc 30.11 7,136.07 .64 .00 2.99
102 MCK Mckesson Corp 44.00 4,488.00 .41 1224 1.09
72 MHS Medco Health Solutions Inc 45.61 3,283.92 .30 .00 .00
125 MDT Medtronic Inc 34.89 4,361.25 .39 .00 2.35
153 MET Metlife Inc 30.01 4,591.53 .41 .00 2.47
191 MCHP Microchip Technology Inc 22.55 4,307.05 .39 .00 6.01
383 MSFT Microsoft Corp 23.77 9,103.91 .82 .00 2.19
48 MOS Mosaic 44.30 2,126.40 .19 .00 .45
95 NOV National Oilwell Varco Inc 32.66 3,102.70 .28 .00 .00
56 NBL Noble Energy Inc 58.97 3,302.32 .30 .00 1.22
54 NUE Nucor Corp 44.43 2,399.22 .22 18.90 3.15
64 OXY Occidental Petroleum Corp 65.81 4,211.84 .38 21.12 2.01
419 ORCL Oracle Corp 21.42 8,974.98 .81 .00 .93
118 PTV Pactiv Corp 21.70 2,560.60 .23 .00 .00
58 PNRA Panera Bread Co (CL A) 49.86 2,891.88 .26 .00 .00
106 BTU Peabody Energy Corp. 30.16 3,196.96 .29 .00 .80
182 PM Philip Morris International 43.62 7,938.84 .72 98.28 4.95
50 PNC PNC Global Investment Servicin 38.81 1,940.50 .18 .00 1.03
96 PCP Precision Castparts Corp 73.03 7,010.88 .63 .00 .16
35 PCLN Priceline Com Inc 111.55 3,904.25 .35 .00 .00
75 PG Procter & Gamble Co 51.10 3,832.50 .35 .00 3.44
93 OCOM Qualcomm Inc. 45.20 4,203.60 .38 .00 1.50
100 ROST Ross Stores Inc 38.60 3,860.00 .35 .00 1.14
96 SRE Sempra Energy 49.63 4,764.48 .43 37.44 3.14
113 RIG Transocean Inc 74.29 8,394.77 .76 .00 .00
159 UNP Union Pacific Corp 52.06 8,277.54 .75 42.93 2.07
240 UNM Unum Group 15.86 3,806.40 .34 .00 1.89
57 VMI Valmont Industries Inc 72.08 4,108.56 .37 8.55 .83
128 VZ Verizon Communications Inc 30.73 3,933.44 .36 .00 5.99
135 WMT Wal-Mart Stores Inc 48.44 6,539.40 .59 .00 2.25
208 WMB Williams Cos Inc 15.61 3,246.88 .29 .00 2.82
110 XTO XTO Energy Inc 38.14 4,195.40 .38 13.75 1.31
Total Domestic Equity Strategy 520,106.30 46.95 590.62 1.78
International Equity Strategy
400 AEG Aegon N.V.-Ny Reg Shr 6.16 2,464.00 .22 .00 6.23
452 AZ Allianz SE-ADR 9.21 4,162.92 .38 .00 3.69
139 BASFY BASF S.E. 39.75 5,525.25 .50 .00 4.76
132 CAJ Canon Inc-Spons ADR 32.53 4,293.96 .39 .00 3.02
451 CX Cemex Sab-Spons ADR Part Cer 9.34 4,212.34 .38 .00 .00
119 CCU CIACerveceriasUnidas-ADR 35.00 4,165.00 .38 .00 2.39
418 DNSKY Danske Bank A/S-Unspons ADR 8.65 3,615.70 .33 .00 .00
89 EONGY E.ON AG -Sponsored ADR 35.42 3,152.46 .28 .00 4.17
89 ENH Endurance Specialty Holdings 29.30 2,607.70 .24 .00 3.41
105 HENOY Henkel KGAA -Spons ADR 31.40 3,297.00 .30 .00 1.54
Page3of4 ~
Dana Investment Advisors, Inc.
PORTFOLIO HOLDINGS
z~
~~
'ortfolio: 1087comp - Tequesta General Employees Pension Fund - As of 06/30/2009
;omp
Shares/ PAR Identifier Description Price Market Value Pct. Assets Accruals Cur.
Owed Yield
210 EFG Ishares Msci Eafe Growth Inx 46.19 9,699.90 .88 .00 3.31
279 KTC KT Corp-Sp Adr 14.36 4,006.44 .36 .00 2.14
412 MAKSY Marks 8 Spencer PLC -ADR 10.00 4,120.00 .37 .00 5.10
180 DCM NTT Docomo Inc-Spon ADR 14.55 2,619.00 .24 .00 3.12
106 SNY Sanofi-Aventis-ADR 29.49 3,125.94 .28 .00 3.79
80 TMX Telefonos De Mexico-Sp ADR L 16.21 1,296.80 .12 .00 3.79
146 TNTTY TNT Nv -ADR 19.50 2,847.00 .26 .00 2.28
56 TM Toyota Motor Corp -Spon ADR 75.53 4,229.68 .38 .00 2.55
65 VIVDY Vivendi 23.90 1,553.50 .14 .00 5.99
172 YARN Yara International-ADR 27.92 4,802.24 .43 .00 2.03
131 ZFSVY Zurich Financial Svcs-ADR 17.66 2,313.46 .21 .00 4.48
Total International Equity Strategy 78,110.29 7.05 .00 3.08
Total Stocks
Total Portfolio
Interest Receivable
Paydown Receivable
Accruals
Dividends Accrued
Total Portfolio with Accruals 8 Receivables
598,216.59 54.00 590.62 1.95
1,107,844.90
0.00
0.00
3,063.67
590.62
1,111,499.19
he market prices shown on these pages represent the last reported sa/e on the valuation date as to listed securities or the bid price in the case of
ver--the-counter quotations. Prices on bonds and some other investments are based on round lot price quotations and are for eva/nation purposes on/y and
gay not represent actua/market values. Bonds sold on an odd lot basis (less than $> mi/lion) may have a dollar price lower than the round lot quote. Where
o regular market exists, prices shown are estimates by sources considered re/iab/e by Dana Investment Advisors, Inc. Whi/e the prices are obtained from
ources we consider re/iab/e, we cannot guarantee them.
Page 4 of 4
Q2 2009 Equity Market Summary
- Earnings reports provide upside surprises and revisions move higher
- Economic indicators begin to show signs of bottoming
- Appetite for risk returns, driving a global equity market rally
- S&P 500 +15.9%, best quarter since 1998
- Cyclical sectors and low quality stocks lead the market
- Small cap stocks (+20.7%) outperform large caps
- Large value stocks outperformed large growth in Q2, growth stocks
still have a significant lead over value for the full year
- Technology stocks remain in favor, large cap technology + 19% in Q2
and +24% YTD
- Risk trade faded in June, utilities best performing sector in the month
S&P 500 Earnings History
- S&P 500 earnings peaked in 2006 at nearly $90 and fell to $49.50 in
2008
- Operating earnings decline -6% in 2007, -40% in 2008
- Q4 2008 marked the first time in history the S&P 500 recorded a
negative earnings quarter
- Possible inflection point? Earnings expected to stabilize in Q3 2009
and begin to grow in Q4
- 1.2% year over year growth forecasted for 2009, +33% for 2010
100
90
80
70 -
60
~ 50
w
40 -
30 -
20 -
10 x'11 ~~ ~~~U~ ILI_~~~.
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ .~ ~ ~ ~ ~ ~ ~ ~ ~ N N N N N N
(O CD (O CO CO CO CO CO CO (O (O CO (O (O CO (O CO (O CO CO O O O O O O
O O O O O v v v v v O OD O O O O CO O CO CO O O O O O -~
O N A O OD O N .A O) 00 O N ,P 07 00 O N A O OD O N ~A O O O
(D
19
EPS Revisions Moving Higher
- Q 1 2009 earnings reports were weak but better then expected
- EPS revisions stabilized and began to move higher for the full year
Globa! Earnings. Revision Ratio
1.6
J 1,~
a 12
0
G
~ 1.0
0.8
a;
a
s C.6
:~
0
`k' 0.4
C,2
1•G9onth Earnings Revision Ratio
-3•P.lanth Earnings Revision Ratio
Average Earnings Revision RaEiG
88 $9 90 91 92 93 9~ 95 86 97 $$ 99 00 41 Oi 03 04 q5 06 Ot 08 08
.ni.ircr: ~:lerrill Lp7ch ~~It~tE71 ~!uanU~~U's•~ <,cra~:-~;~. r:r=.~=~ ~6E~,
- Trailing twelve month operating earnings of $43 are 50% below peak
levels
- Earnings may begin to show signs of bottoming by the end of 2009
- Revenue growth remains challenging
2~
Economic Indicators Improving
Investors focus on the "second derivative" of growth
Signs that the recession is losing steam
Seven often LEI indicators increased in May, employment trends
remain a drag
10% US Index of Leading Indicators (YOY%)
8%
6%
-0%
?%
o%
2%
.d%
i
-6%
~oa
__- -~--_
~os 'as n~
8%
6% I
e% I
2% I
- - - u%
zw
s%
6%
Launch full tlata release
10%
21
Inflation Expectations
- Accommodative global policy and quantitative easing reduces the
threat of deflation
- Anticipated bottoming in global economies
- Rising commodity prices, resource sensitive international markets
(Brazil, Russia, Australia, Canada) outperform in Q2
- Deflation still a near term reality -unemployment rate remains high,
home prices are still falling and capacity utilization is low
US Breakeven: Nominal -Real Yields
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
~O~\O~ \,~h~OO X00\00 ~~~\00 "~\x\00
~~ ~ ~ ~
00 O°~ 00 OQ' O°~ O°' O°~ O°~
O\~co~ O\O~~ ~\~~~ ~\00~ ~\~c,~~ ~\00~ co\~p\ co\~O~
2
Risk Taking Makes Comeback
- Cyclical sectors lead S&P 500 higher in Q2
• Financials +36%, Technology +20%, Industrials +19%, Consumer
Discretionary +18%
• Stable telecom, health care, staple sectors lag
- Junk bonds +24%, 10-year Treasury Bond -6%
- VIX drops 40%, levels not seen since prior to Lehman collapse
CBOE VIX Volatility Index
90 Max: 79.13 (24-UCT-0B), Min: 10.02 (10-FE6-U7), Last: 25.93 r26-JUN-09) 90
RO 80
70
so
50
40
30
20
70
so
50
40
30
20
10 10
-: I
D - _- - ----- - ii
'05 '00 'D7 '08
Low Quality Rally
The 40% rally in the S&P 500 from March 9th through June 12th was led
by low quality stocks
- S&P 500 unprofitable companies +75%
- Negative free cash flow +65%
- Negative ROE +71
- Top quartile leverage +66%
- Top quartile short interest +63%
- Stocks priced < $5/sh +166%
- Small Cap (market cap under $2bin) +l 14%
- Trading under BV +86%
- Average return of stocks with quality rating of B or lower +78%
3/9/2009 - 6/12/2009 Returns by S&P Stock Quality Rating
140
120
100
c 80
L
3
Y
~ 60
40
20
0
2
A+ A A- B+ B B- C N/A
Quality Rating
Low Quality Rally
['he 55% rally in the Russe112000 from March 9th through June 5th was
ed by low quality stocks
• Russell 2000 unprofitable companies +82%
• Negative free cash flow +62%
• Negative ROE +84%
• Top quartile leverage +60%
• Stocks priced < $5/sh +115%
• Trading under BV +76%
• Average return of S&P 500 stocks with quality rating of B or
lower +78%
3/9/2009 - 6/12/2009 Returns by S&P Stock Quality Rating
140 ~
120
100
L 80
3
~+
~ 60
40
20
0
N/A
25
A+ A A- B+ B B- C
Quality Rating
Market Bull and Bear Arguments
Bull Case:
• Sidelined cash levels are high
• Economic indicators are improving, including consumer confidence
• Credit markets have thawed
• Cyclical sectors have led the recent rally, signaling improving economy
• EPS revisions are moving higher
Bear Case:
• Business and consumer deleveraging will weigh on the economy
• Equity markets ran ahead of fundamentals
• Potential for higher taxes and regulation may depress market multiples
• Positive EPS surprises driven by cost cutting, lack of top line growth
1.4 - US MZM Money Supply !Russell 3QOQ Market Value
1.2~
Ratio of Liquid Money Supply /Total Stock Market Value
Rose Above lx
1
d.v
Q.~
4.4
0.~ '99 '00 '01 '02 '03 '04 US 'L16 '07 '08
t1AN~ i\Va?5('~1F:NT Ai)4'IS(1R5, INC.
Strong Fundamentals Dana Large Core
The table below shows Dana Large Core holdings that have raised
their dividend payments since October 1, 2008.
Dividend
Company Yield
Increase
United Technologies 3.30% 20.30%
Becton Dickinson & Co 2.00% 15.80%
Wal-Mart Stores Inc. 2.20% 14.70%
Airgas Inc. 1.69% 12.50%
Sempra Energy 3.50% 11.40%
Abbott Laboratories 3.80% 11.10%
International Business Machine 2.10% 10.00%
Honeywell International Inc. 3.80% 10.00%
Procter & Gamble Co. 3.50% 10.00%
Nucor Corp. 3.20% 9.40%
Sysco Corp. 4.30% 9.10%
Medtronic 2.20% 9.00%
Ni1ce Inc . (C 1 B) 1.80% 8.70%
General Dynamics Corp. 3.20% 8.60%
Johnson & Johnson 3.55% 6.52%
Exxon Mobil Corporation 2.41% 5.00%
XTO Energy Inc. 1.50% 4.20%
CenterPo int Energy Inc . 7.61 % 4.11
Occidental Petroleum Corp. 2.30% 3.10%
AT&T Inc 6.40% 2.50%
VF Corp 3.50% 1.70%
Edison International 4.21% 1.64%
Microchip Technology 6.90% 0.30%
Oracle Corp. 1.00% Initiated
Strong Fundamentals Dana Large Growth
The table below shows Dana Large Growth holdings that have raised
their dividend payments since October 1, 2008.
Dividend
Company Yield
Increase
Abbott Laboratories 3.59% 11.11%
AT&T Inc. 6.69% 2.50%
Becton Dickinson & Co. 1.97% 15.79%
Coca-Cola. Co. 3.47% 7.89%
Colgate-Palmolive Co. 2.72% 10.00%
CVS Caremark Corp. 1.02% 10.51%
Dun & Bradstreet Corp. 1.63% 13.33%
FPL Group Inc. 3.44% 6.18%
General Dynamics Corp. 2.70% 8.57%
IBM 2.09% 10.00%
Johnson & Johnson 3.55% 6.52%
Microchip Technology Inc. 6.28% 0.30%
Monsanto Co. 1.24% 10.42%
Nike Inc. 1.85% 8.70%
Oracle Corporation 1.05% Initiated
Sysco Corporation 4.07% 9.09%
Wal-Mart Stores Inc. 2.18% 14.74%
XTO Energy Inc. 1.22% 4.17%
2!
High Quality Lagged The McDonald's Conundrum
- McDonald's reported another strong quarter on April 22nd, company has
not missed quarterly earnings estimates in the past four years
- Coffee initiatives, international expansion, dollar menu driving growth
• Expected to grow earnings 6% in 2009 and 10% in 2010
- Comp Store Sales have remained positive throughout recession
• World wide comp store sales positive since May 2003
- Margins improving, industry leading ROE, exceptional cash flow, 3.5%
dividend yield, 3-year dividend growth of 41
- MCD trading at 14x earnings, a 13% discount to its fast food peers and
40% discount to the average consumer discretionary stock
- Strong fundamentals did not necessarily lead to outperformance in
Q2 -• Goodyear Tire & Rubber; unprofitable, highly leveraged,
burning cash but outperforms broad market and consumer discretionary
sector in Q2
Q2 Returns
~- MCD +6% ~ GT +80%
-- ~
110
90 - - - -
70 - - - ---
-- - ---
30
10 - ---- -- - ---
-
'
-
i
-10
X00 X00 X00 X00 X00 X00 X00 X00 X00 X00 X00 X00 ~O~' X00
3~0^ x\01 D~~~ ~~~~ ~~~0 h~0~ ~\,~0, h~~0 h~~0 `o~0`L 000 0~,~0 O~~O 000
O O O O O O O O O O O O O O
29
Fixed Income
- Fed continues to maintain short term rates at near zero .
- Obama stimulus plan has yet to show any positive effects on the economy - in
particular the j ob market .
- Corporate spreads continue to tighten during the quarter, continuing the price
recovery since the credit crisis of 2008. Almost all of the non-financial corporate
bonds now trade at par or premium .
- Lower quality bonds had the highest total returns in the second quarter.
- Longer treasuries and agencies had negative returns for the quarter.
- Avoiding credit risks and maintaining income as the major component of return
will be key goals this year.
- Corporates and mortgages should outperform treasuries for the remainder of the
year.
s.s
s.o ------- - ---------------------
4.5 ----- -----------------------------
4.0 ---------------- --- ----------------
3.5 ------ - ----------------
3.0 -------- -- -------------
2.5 ------------------------- -------------
2.0 ----- - ---- ----- --------------- -------'
1.5 -----------------------------!
----------------------- --------------------
0.5 - ------------------------------- -------------------------
03 Months 06 Months 02 Years OS Years 10 Years 30 Years
~-Dec 31, 2008 0.08 0.26 0.76 1.55 2.21 2.68
-~-Mar 31, 2009 0.20 0.42 0.80 1.66 2.66 3.53
-+~ -Jun 30, 2009 0.18 0.34 1.1 1 2.56 3.53 4.33
3l
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