HomeMy WebLinkAboutHandouts_Pension General_06/30/2009■
■
■
■
■
■
r]
General Employees'
Pension Fund
As of June 30, 2009
DANA INVF'STMF.NTINC.
15800 WEST BLUEMOUND ROAD
SUITE 250
P.O. Box 1067
BROOKFIELD, WISCONSIN 53008-1067
www.DANAINVESTMENT.COM
This page intentionally left blank
VON MINIMMEMEM O ■ ■ ■ ■ ■ MEAN ■ o M W ■ ■ ■ ■ ■ i ■
No Text
This page intentionally left blank
nomSINOWS HNamanxJim.2aaJInamaaaaam
Signs of Recovery
➢ S&P 500 is up over 45% from the Marchq1h low.
➢ Retail sales recovering from the 01 Quarter: now positive.
> Durable goods orders are growing.
➢ Bank stocks have doubled from their lows.
➢ Existing home sales
have rebounded in some
markets and prices are
stabilizing.
➢ Personal consumption
expenditures grew in
the I St Quarter after
contracting for 6
months.
➢ Volatility, a measure of
market risk, is at a 10
month low.
➢ Consumer confidence
has rebounded.
Goldman Sachs Group Inc. (GS)
31 -Dec-2008 to 31 -Jul-2009 (Daily) High: 188.420
U.S. Dollar Low: 59.130
Loaf: 161.830
140
H i2o
J 100
do
Jan Feb mor pr MAY Jun JLd D— - - - - - - - - - - -- --A - - -- - -- --
JPMorgan Chose & Co. (0101)
31 Doc 2006 to 31 Jul 2009 (Daily)
U.S. Dollar
High; 39.470
Low: 14.980
LW; 38.370
i- 40
35
30
20
Apt May Jun Jul
DANA INVESTMENT ADVISORS, INC.
Village of Tequesta General Employees' Pension Fund
Employees' Fixed Income
-0.26%
6.06%
Govt/Credit Intermediate
1.67%
6.53%
Employees' Large Cap Core
13.13%
-22.201�0
S&P 500
15.93%
-19.47%
Employees' Large Cap Growth
11.40%
-17.37%
Russell 1000 Growth
16.32%
-13.89%
Employees' International
22.62%
-20.48%
MSCI EAFE
25.85%
-13.16%
DANA INVESTMENT ADVISORS, INC.
■
El
Village of Tequesta General Employees' Pension Fund
■
Bond Characteristics as of 6-30-09
■
■ Current Annualized
Credit Quality Yield to Maturity Average Coupon Effective Duration
Market
L-J
■
I GovdCredk Intermediate I
AA+ I 3.21% I 4.25%
I 3.87
■Asset
Allocation
as of 6-30-09 at Market
■
■
Equity
Fixed Inconx
■
44.1go
■
Ca h & ELli Talents
■
Equity Allocation
Fixed Income Allocation
■
A�en�c Con,nr{?c
Dana L.ir*�
Btmd, Bond;
Mortgage
-'Cal7(sowth
Recewable
17.9"o I1.R"-o
Bonds
Inconx --I
7.30/,
■all
Money
Market
7 ',
Dacia Large
Cap Core.[)ain
Treasury
[n�crnniional
Bond,
Taxable Bond
3b.004
Funds
36.7%
■
■
■
■
■
4
DANA INVESTMENT ADVISORS, INC.
■
■
Second Quarter Review m
DANA INVESTMENT ADVISORS, INC.
Dana Large Cap Gore
The Dana Large Cap Equity strategy had a double-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 +29.2%). 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 %.
IL Q2 Sector Contributors
State Street Corp. (STT) ■ Energy — strong results from oil service and exploration and production holdings,
Goldman Sachs Group (GS) relative underweight in underperforming integrated oil segment
General Dynamics Corp (GD)
Union Pacific Corp. ■ Industrials — aerospace / defense, industrial machinery holdings outperformed
Transocean Ltd. (RIG)
Precision Castparts Corp. (PCP) Q2 Sector Detractors
■ Consumer Discretionary — underweight higher beta retail and media, poor
GameStop Corp. (GME) performance from GameStop
Broadridge Financial. (BR) ■ Information Technology — lack of exposure to semiconductors, underperformance
Bristol-Myers Squibb Co. (BNM in Cisco and Broadridge vs. respective industry peers
Wal-Mart Stores. (WMT) ■ Materials — portfolio holdings up +33.5% vs. +35.5% for sector, underweight in
VF Corp. (VFC) 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. (ROST) — 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
Since
ep .
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. 1 15800 W. Bluemound Rd., Suite 250, Brookfield, WI 53005
1-800-765-0157 1 www.danainvestment.com I infoadanainvestment.com
a
rr 4n u ^ i r%i Alt`c O/
■
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
2.1
■SECTOR
ALLOCATION
Large
S&P
Core
Soo
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
Performance
R
a`
0
15.93
13.20
I I
I MROK14 3.16 111111I2.36
I. I
�-Z24-1.11
I-8-00 -8.22
�
I
r
-26.39I-26.22
2Q2009 YTD 1 year 3 year 5 year Since Inception
Dana Large Cap Core 0 S&P500
IMPORTANT INFORMATION
6/29/99-12/31/99 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 Performance Standards
(GIPST°"). 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
Sequity, 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.
SThe 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 a time- 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.
E
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 Investment Advisors, Inc. 1 15800 W. Bluemound Rd., Suite 250, Brookfield,
1-800-765-0157 1 www.danainvcstment.com I infoQdanainvestment.com
'rice to Earnings
Ratio
(trailing)
Price to Earning
Ratio
(forward)
DANA INVESTMENT ADVISORS, INC.
■
ri �. Second Quarter Review
DANA INVESTMENT ADVISORS, INC.
■ Dana Large Cap Growth
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 Q2O9, 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 Q2O9. 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.
■ „� Q2 Sector Contributors
■ Pactiv Corp. (PTV) ■ Materials — Pactiv up almost +50%, Mosaic also outperformed the rest of the
Valmont Industries Inc. (VMI) Agricultural Chemicals Group
■ priceline.com (PCLN) ■ Industrials — aerospace / defense overweight, Valmont Industries strong performer
General GD ( Dynamics )
Adobe Systems Dynamics
GDBE) Consumer Staples — most holdings modestly outperformed their respective
industry peers, Colgate +21%, Philip Morris Intl +24%
Transocean Ltd. (RIG)
■
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
Genzyme Corp. (GENZ)
Bank of New York Mellon (BK) 0 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 in spices/seasonings continues to Avg. Market Cap ($billions) 4rov 65o
experience steady growth despite recession, margin expansion & solid free
cash flow trends, stock trading near low end of 10 year historical valuation range Median Market Cap ($billions) 21.0 3.6
■ ■ Medco Health Solutions Inc. (MHS) — leading pharmacy benefit manager Dividend Yield 1.48% 1.78%
■ has strong tailwind from generic drug trends, high teens EPS growth with 3 Year Return on Equity 25.1% 26.0%
margin expansion & steadily rising free cash flow Price/Earnings (12month trailing) 13.9 15.5
■ Selected Deletions Trailing 3 Years Earnings Growth 26.3% 19.1 %
PEG Ratio 0.5 0.8
. ■ Sysco (SYY) — declining consumer spending on eating out pressuring
earnings growth & margins, negative EPS revision trends Since
ptlion
. ■ Dentsply International (XRAY) — leading maker/distributor of dental products
experiencing worse than anticipated fundamentals as dentists cut cap ex Alpha (0.60) 3.04 3.36
. spending, negative EPS surprise and downward estimate revision trends Beta 0.89 0.89 0.88
■ MasterCard Inc. (MA) — strong performer's valuation not as attractive Batting Average .575 .700 .636
compared to original buy point, traded into BRCM which offerred superior Info Ratio 0.08 0.74 0.61
risk/reward proposition
Dana Investment Advisors, Inc. 1 15800 W. Bluemound Rd., Suite 250, Brookfield, WI 53005
1-800-765-0157 1 www.danainvestment.com I info@danainvestment.com
TOP 10 HOLDINGS
' ,
Apple Inc
2.4
Google Inc -CI A
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
3 10
5
d 0
N
-5
c -10
a -15
y
c -20
0 -25
-30
1.72
5936
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
(GIPSTM). 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 a time -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 of asset -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 of non -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 ll, a copy of which is available upon request.
Dana Investment Advisors, Inc. 1 15800 W. Bluemound Rd., Suite 250, Brookfield, WI 53005
1-800-765-0157 1 www.danainvestment.com I info®danainvestment.com lie
No Text
14
Dana Investment Advisors, Inc.
PORTFOLIO HOLDINGS
As of 06/30/2009
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
31359MZLO
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
10728
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
06423AAQ6
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
054303AQ5
AVON PRODUCTS INC 4.625% Due 05/15/2013
102.00
5,100.00
.46
28.91
4.53
5,000
38141GDQ4
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
49436813138
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
31410BGA6
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 Year Trea
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
912828HTO
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
0
Shares/ PAR
Identifier
Dana Investment Advisors, Inc.
PORTFOLIO HOLDINGS
Description Price Market Value
Pct. Assets
*4
As of 06/30/2009
Accruals Cur.
Owed Yield
■
5,000
912828DV9
US TREASURY N/B 4.125% Due 05/15/2015
106.67
5,333.59
.48
2538
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 4.25% 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
ekt.cks
Domestic Equity Strategy
151
ABT
Abbott Laboratories
47.04
7,103.04
-64
.00
3.40
■
246
ACN
Accenture Ltd-Cl A
33.46
8,231.16
.74
.00
1.49
148
ADBE
Adobe Systems Inc
28.30
4,188.40
.38
.00
.00
■
65
ARG
Airgas Inc
40.53
2,634.45
.24
.00
1.78
122
AXP
American Express Cc
23.24
2,835.28
.26
21.96
3.10
■
180
ABC
AmerisourceBergen Corp
17.74
3,193.20
.29
.00
1.13
73
AMGN
Amgen Inc
52.94
3,864.62
.35
.00
.00
■
55
APA
Apache Corp
72.15
3,96825
.36
.00
.83
72
AAPL
Apple Inc
142.43
10,254.96
.93
.00
.00
193
T
AT&T Inc
24.84
4,794.12
.43
.00
6.60
■
247
BK
Bank Of New York Mellon Corp
29.31
7,239.57
.65
.00
1.23
139
BAX
Baxter International
52.96
7,361."
.66
36.14
1.96
108
BDX
Becton Dickinson & Co
71.31
7,701.48
.70
.00
1.85
116
BMC
BMC Software Inc
33.79
3,919.64
.35
.00
.00
175
BMY
Bristol-Myers Squibb Co
20.00
3,500.00
32
.00
6.20
175
BRCM
Broadcom Corp - Class A
24.79
4,338.25
.39
.00
.00
200
BR
Broadridge Financial Solutions
16.58
3,316.00
.30
14.00
1.69
58
CVX
Chevron Corp
66.25
3,842.50
.35
.00
3.92
440
CSCO
Cisco Systems Inc
18.65
8,206.00
.74
.00
.00
25
CME
CME Group Inc
311.12
7,778.00
.70
.00
1.48
■
88
KO
Coca-Cola Co/The
47.99
4,223.12
.38
36.08
3.42
54
CL
Colgate-Palmolive Cc
70.74
3,819.96
.34
.00
2.49
58
COP
Conocophillips
42.06
2,439.48
.22
.00
4.47
43
BCR
CR Bard Inc
74-45
3,201.35
.29
.00
.91
■
232
CVS
CVS Caremark Corp
31.87
7,393.84
.67
.00
.96
163
DTV
DirecTV Group Inc/The
24.71
4,027.73
.36
.00
.00
■
220
EBAY
Ebay Inc
17.13
3,768.60
.34
.00
.00
649
EMC
EMC Corp
13.10
8,501.90
.77
.00
.00
55
XOM
Exxon Mobil Corp
69.91
3,845.05
.35
.00
2.40
116
FDO
Family Dollar Stores Inc
28.30
3,282.80
.30
15.66
1.91
107
FE
Firstenergy Corp
3835
4,146.25
.37
.00
5.68
75
FLS
Flowserve Corp
69.81
5,235.75
.47
20.25
1.55
104
FMC
FMC Corp
47.30
4,919.20
.44
13.00
1.06
76
FPL
FPL Group Inc
56.86
4,321.36
.39
.00
3.32
■
294
GME
Gamestop Corp -Class A
22.01
6,470.94
.58
.00
.00
92
BGC
General Cable Corp
37.58
3,457.36
.31
.00
.00
131
GD
General Dynamics Corp.
55.39
7,256.09
.65
49.78
2.74
■
300
GE
General Electric Co
11-72
3,516.00
.32
30.00
3.41
72
GIS
General Mills Inc
56.02
4,033.44
.36
.00
3.36
■
52
GENZ
Genzyme Corp
55.67
2,894.84
.26
.00
.00
76
GILD
Gilead Sciences Inc
46.84
3,559.84
.32
.00
.00
34
GS
Goldman Sachs Group Inc
147.44
5,012.96
.45
.00
.95
11
GOOG
Google Inc-Cl A
421.59
4,637.49
.42
.00
.00
■
233
HPQ
Hewlett-Packard Co
38.65
9,005.45
.81
18.64
.83
Page 2 of 4
Shares/ PAR
Identifier
Dana Investment Advisors,
PORTFOLIO HOLDINGS
Description Price
Inc.
Market Value
Pct. Assets
f;
-'
As of 06/30/2009
Accruals Cur.
Owed Yield
0
■
■
195
HNZ
HJ Heinz Co
35.70
6,961.50
.63
81.90
4.71
.
128
HON
Honeywell International Inc
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
12.24
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
r
93
QCOM
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
SIRE
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
CIA Cervecerias Unidas-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
Page 3 of 4
low
.
■ Dana Investment Advisors, Inc.
PORTFOLIO HOLDINGS
As of 06/30/2009
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 & Spencer PLC - ADR
10.00
4,120.00
.37
.00
5.10
186
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
2390
1 553 50
14
00
599
172 YARIY 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 598,216.59 54.00 590.62 1.95
• Total Portfolio 1,107,844.90
. Interest Receivable 0.00
Paydown Receivable 0.00
. Accruals 3,063.67
Dividends Accrued 590.62
. Total Portfolio with Accruals & Receivables 1,111,499.19
The market prices shown on these pages represent the last reported sate on the valuation date as to Listed securities or the bid price in the case of
Wer--the-counter quotations. Prices on bonds and some other investments are based on round lot price quotations and are for evaluation purposes only and
may not represent actual market values. Bonds sold on an odd lot basis (less than $1 million) may have a dollar price lower than the round lot quote. Where
Wo regular market exists, prices shown are estimates by sources considered reliable by Dana lnvestmentAdvisors, Inc. While the prices are obtained from
ources we consider reliable, we cannot guarantee them.
0
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 ■
F]
■
Ll
■
■
DANA INVESTMENT ADVISORS, INC. ■
1p
&P 500 Eamings History
S&P 500 earnings peaked in 2006 at nearly 90 and fell toy 9.50 in
2008
Operating earnings decline -6% in 2007, 40% in 200
Q4 2008 marked the first time in history the S&P 500 girded a
negative earnings quarter
Possible inflection point? Earnings expected to stabiles inQ3 2009
and begin to gravy in Q4
12% year over year growth forecasted for 2009, + % for 2010
100 -
9Q
84
7 1
/0
j
VW
a, 5o
40
30
zo
10 I'
DANA LNMI 14DVMRS, INC
19
EPS Revisions Moving Higher
> Q 12009 earnings reports were weak but better then expected
> EPS revisions stabilized and began to move higher for the full year
1.9
0.2
_.. .. 3-finingslion is
'jet
Aava-ap Eaminp ReWsion Ratio
r
12+„t
88 89 90 91 92 93 $4 96 9 87 98 " 00 01 02 03 04 05 09 AT 08 09
Satwe: Meml Lynch Gal Quar we fir, Ike: IBES
`trailing twelve month operating earnings of $43 are 50% o below peak
levels
> Earnings may begin to show signs of bottoming by the end of 2009
Revenue growth remains challenging
DANA. UWESTWNT ADVISORS, INC.
Economic Indicators Improving
➢ Investors focus on the "second derivative" of growth
➢ Signs that the recession is losing steam
➢ Seven of ten LEI indicators increased in May, employment trends
remain a drag
0% US Index of Leading Indicators (YOY%)
Launch full data release 0%
i
6%
_6%__ _._ _ ____. ______ _- _....-----.----_----- -._.. __._.---- --.---- ----.._.__--'-6%
'04 '05 '06 '07 .08
DANA INVESTMENT ADVISORS, INC.
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% Rates signaling inflation expectations near zero
0.W%
N 4
DANA INVESTMENT ADVISORS, INC.
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
00
70
60
50
40
30
20
10
0
Max: 79.13 (24-OCT-08), Min: 10.02 (16-FEB-07), Last: 25.93 (26-JUN-09) 90
80
70
60
- 5u
- a0
30 1
20
10
DANA INVESTMENT ADVISORS, INC.
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) +114%
➢ Trading under BV +86%
➢ Average return of stocks with quality rating of B or lower +78%
140
120
100
c 80
L
3
12 60
40
20
0
3/9/2009 - 6/12/2009 Returns by S&P Stock Quality Rating
A+ A A- B+ B B- c N/A
Quality Rating
DANA INVESTMENT ADVISORS, INC.
No Text
Market Bull and Bear Arguments
ull 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
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 l-
US MZM Money Supply / Russell 3000 Market Value
1.2
Ratio of Liquid Money Supply / Total Stock Market Value
Rose Above 1x
1
0.8
0.6
0.4
0.2
gs -- roz ros oa os o� ros
DANA INVESTMENT ADVISORS, INC.
■
■
■
Strong Fundamentals Dana Large Core
The table below shows Dana Large Core holdings that have raised
their dividend payments since October 1, 2008.
United Technologies
Becton Dickinson & Co
Wal-Mart Stores Inc.
Airgas Inc.
Sempra Energy
Abbott Laboratories
International Business Machine
Honeywell International Inc.
Procter & Gamble Co.
Nucor Corp.
Sysco Corp.
Medtronic
■
Nike Inc. (Cl B)
■
General Dynamics Corp.
■
Johnson & Johnson
■
Exxon Mobil Corporation
XTO Energy Inc.
■
CenterPoint Energy Inc.`
■
Occidental Petroleum Corp.
■
AT&T Inc
■
VF Corp
■
Edison International
■
Microchip Technology
■
Oracle Corp.
■
DANA INVESTMENT ADVISORS, INC.
3.30%
2.00%
2.20%
1.69%
3.50%
3.80%
2.10%
3.80%
3.50%
3.20%
4.30%
2.20%
1.80%
3.20%
3.55%
2.41%
1.50%
7.61%
2.30%o
6.40%
3.50%
4.21%
6.90% o
1.00%
20.30%
15.80%
14.70%
12.50% o
11.40%
11.10%
10.00%
10.00% o
loe00%
9.40%
9.10%
9.00%0
8.70%
8.60%
6.52%
5.00%
4.20%
4.11%
3.10%
2.50%
1-.70%
1.64%
0.30%
nitiated
2,
Strong Fundamentals Dana Large Growth
The table below shows Dana Large Growth holdings that have raised
their dividend payments since October 1, 2008.
Abbott Laboratories
AT&T Inc.
Becton Dickinson & Co.
Coca-Cola Co.
Colgate-Palmolive Co.
CVS Caremark Corp.
Dun &-Bradstreet Corp.
FPL Group Inc. -
General Dynamics Corp.
IBM
Johnson & Johnson
Microchip Technology Inc.
Monsanto Co.
Nike Inc.
Oracle Corporation
Sysco Corporation
Wal-Mart Stores Inc.
XTO Energy Inc.
3.59%
11.11% `
6.69%
2.50%
1.97%
15.79%
3.47%
7.89%
2.72%
10.0010/0
1.02%
10.51%
1.63%
13.33%
3.44%
- 6.18%
2.70%
- 8.57%
2.09%
10.00%
3.55%
6.52%
6.28%
0.30%
1.24%
10,42%
1.85%
8.70%
1.05%
Initiated
4.07%
9.09%
2.18%
14.74%
1.22%
4.17%
DANA INVESTMENT ADVISORS, INC.
■
■
■
■
■
■
■
M
M
■
M
M
M
M
M
M
M
M
M
M
M
Nigh Qualify Lagged The 1VlcDanald'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 4 1 %
➢ MCD trading at 14x earnings, a 13% discount to its fast food peers and
40% discount to the average consumer discretionary stock
➢ Sarong fundamentals did not necessarily lead to outperforrnance in
Q2 P- Goodyear Tire & Rubber; unprofitable, highly leveraged,
burning cash but outperforms broad market and consumer discretionary
sector in Q2
22 Returns
MC D +6% — GT +80%
110 --- -—
90
70 Ii ---- -- ---
50
30d - -- -f
10 -- -= — -- --
- - ----- —
OC' OC OO O°� O� 4� �i� OO O°' Oa' OO 04 OCR OC'
�OgOQ'�`
O O O O O O O Q O O O O U O
DANA INVESTMENT ADVISORS, INC.
29
Fixed. Ilracome
� 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 job 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 corpo:
bonds now trade at par or premium .
);�- Lower quality bonds had the highest total returns in the second quarter.
A- Longer treasuries and agencies had negative returns for the quarter.
Avoiding credit risks and maintaining income as the major component of
will be ley goals this year.
> Corporates and mortgages should outperform treasuries for the remainder of
year.
5.5
5.0----------------------------------------------------------------------
4.5 ---------------------------------------------------------------------
11,
4.0--------------------------------------------- _---------------
3.5------------------------------------------------------�--------
3.0---------- - - - - ---------------- - - - -
---------------- __ »-----
2.5---- - - - - -- - - - - ----------- - - - - -- -- ----_ -- —. _ -- - - - - -'
___ ---_ -
2.0- - - - - --
/.-
1.5
1.0 -- --------------------------------------------------------------
0.5- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
03 Months
06 Months
02 Years
05 Years
10 Years
30 Years
-t-- Dee 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
1.11
2.56
3.53
4.33
DANA INVESTMENT ADVISORS, INC.
No Text
No Text