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Home My WebLink AboutDocumentation_Pension General_Tab 15_05/03/2010 Village of Tequesta General Employees' Pension Fund As of March 31, 2010 DANA INVESTMENT ADVISORS, INC. 15800 WEST BLUEMOUND ROAD SUITE 250 P.O. Box 1067 BROOKFIELD, WISCONSIN 53008-1067 www.DANAINVESTMENT.COM Table of Contents Pa 3 Performance & Allocation 5 Economic Outlook & Review 22 Holdings as of 3-31-10 26 Broker Commission Report Village of Tequesta General Employees' Pension Account Data as of 3-31-10 7 Account Profile Obtain a reasonable total rate of return, w ith reasonable consistency w hile attempting to protect the assets against the inroads of inflation. Performance over 3 -5 year market cycle to be in excess of Investment Objectives: composite indices. Manager's performance to be in the top 40% of comparable manager universe. Total Return to be equal to actuarial earnings assumption and equal or exceed CPI plus 3% over 3 -5 year cycle. Comparative Indices: 50% S &P 500; 40% Intermediate Govt/Credit; 10% MCI EA FIE Not more than 5% of fund's assets invested in any one issuing company or aggregate investment in one company exceed 5% of outstanding capital stock of the company. Equity - Investments in stock not to Investment Restrictions: exceed 60% 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% of the total fund. Performance vs Comparables Total Return Fiscal 2nd Qtr 2010* Fiscal Year -to -Date Average Annual Since Inception 12 -31 -09 to 3 -31 -10 9 -30 -09 to 3 -31 -10 10 -3 -05 to 3 -31 -10 Tequesta General Employees! , Blend 50% S &P 500 3.40% 7.34% 3.47% 40% Intermediate Govt Credit 10% MSCIEAFE Employees' Fixed Income 1.66% 2.44% Govt /Credit Intermediate 1.54% 1.85% Employees' Domestic Equity 5.73% 11.56% S &P 500 5.39% 11.76% Employees' International 0.23% 4.94% MSCI EAFE 0.94% 3.18% Fiscal = 9 -30 * Unannualized ** Blend History: Oct 2005 to Nov2009 -60% S &P 500;40% Intermediate Govt/Credit Nov 2009 to Current- 50% S &P 500; 40% Intermediate Govt/Credit; 10% MSCI EAFE The information set forth above is based upon information believed to be accurate and reliable but we do not guarantee its accuracy. Dana Investment Advisors, Village of Tequesta General Employees' Pension Account as of 3-31-10 Bond Characteristics Current Annualized Credit Quality Yield to Maturity @ Average Coupon Effective Duration Market ; Employees' Fixed Income AA- 3.25% 5.16% 3.81 Govt/Credit Intermediate AM 2.58% 3.77% 3.92 . . LM - ❑ Cash & Equivalents ❑ Equity $34,474 $869,570 '' _., , 2.4% 60.3% ■ Fixed Income $537,695 37.3% Equity Allocation Fixed Income Allocation t3 Dana Lrg ■ Agency M Corp Grow th Bonds Bonds 43.8% 15.0% 56.6% ■ Treasury ® Dana Lr ■ Dana Int'I o Mg Bonds g 15.6% 15.2% Bond Bonds ❑ Txble 0 5.5% Core Funds 40.6% 7.7% The information set forth above is based upon information believed to be accurate and reliable but we do not guarantee its accuracy. Dana Investment Advisors, Q1 2010 Equity Market Summary Companies reporting significant earnings growth and beginning to experience revenue growth as well Economic data pointing to continued recovery Industrials, financials and consumer discretionary led the market higher in Q1 Commodity cyclicals (energy, materials) underperformed Small caps outperformed large caps in Q1 Large cap value stocks outperformed large cap growth in Q1 and over the last twelve months Lower return differential between high and low quality stocks in Q1 (still slightly favoring low quality) �Ind Returns EEQ1 2010 ■ 12 Months ending 3/31/10 S&P 500 5.4 NASDAQ Russell 1000 Growth , Russell 1000 Value Russell 2000 0% 10% 20% 30% 40% 50% 60% 70% Dana Investment Adviso Balance Sheets are Cash Rich Cash as a % of U.S. companies' overall market capitalization is currently at 60 year highs Free cash flow remains strong, S &P 500 on track to generate almost $800 billion in FCF in 2010 Aggressive actions involving dividends, M &A and share buybacks could be an important market catalyst looking forward 1200 �S &P 500 ex- Financials Cash t$bn) 1200 1000 1000 800 800 600 000 400 400 200 200 0 0 Co CO 00 00 07 0) 0) M 07 O 0 O O 0 U U U U 6 U 6 U U U U U U 6 N N 4) tU a) N N N N N N a) N N 0 M 0 a d 0 0 0 M 0 0 0 d M Source '1mPU.5 :at Ueutsch* Ban, Dana Investment Adviso Dividends 4A61 4AA S &P 500 dividends per share fell 15% in 2009 Dividends are rebounding, the number of dividend raises are 50% higher year -to -date vs. the same period in 2009 Approximately 1/3 of S &P 500 companies that announced a dividend increase in Q1 are held in at least one Dana strategy S &P 500 -Dividends per Share 35 Recession Periods - United States { 30 25 �0 1U ri ii i i i j W_, Merger & Acquisition Activity low U.S. companies have made over 2,000 deals in Q1 2010, up nearly 30% year- over -year Acquirers often experiencing positive stock price reactions after announcing accretive acquisitions A sample of Dana holdings making accretive acquisitions are shown below Acquirer % Return Company Day of Announcement 5 Days Post Announcement MET American Life Insurance 5.10% 8.10% PVH Tommy Hilfiger 9.80% 12.50% PRGO PBM Holdings 11.90% 13.90% Market Bull and Bear Arguments Bull Case: Economic indicators are strengthening Valuations remain reasonable EPS growth expected to be 20 %+ in each quarter in 2010 Companies reporting top line growth Record amounts of cash could lead to shareholder friendly actions (dividends, share repurchases, accretive M &A) Global monetary policy remains accommodative Bear Case: Prospect of higher interest rates could put a cap on equity market multiples Business and consumer deleveraging continues to weigh on the economy Political uncertainties creating a drag on business capital investment & job creation Continued high unemployment impeding U.S. disposable household income and consumer spending Credit availability still difficult given tougher loan underwriting criteria Performance Attribution Large Cap Core Q1 Sector Contributors Materials: strong performance from Lubrizol (LZ) and mid - quarter additions DuPont (DD) and Freeport- McMoran (FCX) Health Care: Mylan Inc. (MYL), Bristol -Myers Squibb (BMY) and DaVita Inc. (DVA) were positive contributors Energy: good returns from Williams Companies (WMB) and underweight to Exxon Mobil (XOM) boosted relative performance Q1 Sector Detractors Consumer Discretionary: weakness from Newell Rubbermaid (NWL), and lack of exposure to autos and hospitality Consumer Staples: premature sell of Coca -Cola Enterprises (CCE), weakness in Kimberly -Clark Corporation (KMB), lack of exposure to grocers and food distributors Top Individual Contributors Individual Laggards Unum Group +27% Newell Rubbermaid Inc. -8% Ross Stores Inc. +26% 0 Coca -Cola Enterprises Inc. -9% • Lubrizol Corporation +26% ■ AT &T Inc. -6% • General Electric Company +21 % • Texas Instruments Inc. -6% MetLife Inc. +23% Microsoft Corporation -4% .- . + • Selected Additions / Deletions Large Cap Core Additions: Whirlpool Corporation (WHR) — attractive valuations; great estimate revision trends; indirect play on recovering housing market E. I. DuPont (DD) — good leverage to economic recovery; cost controls supporting earnings; valuations attractive and dividend over 5 %; volumes are growing, and pricing power allowing input costs to be passed through Northrop Grumman (NOC) — positive earnings announcement reflecting continued EPS growth; share repurchases helping support EPS growth; $32 billion in new awards in 2009; valuation and dividend attractive Deletions: Newell Rubbermaid (NWL) — earnings miss and lower guidance in January, with 2010 earnings back -end loaded; rising SG &A expenses; currency headwinds McDonald's Corporation (MCD) — after holding up well in 2008, the stock was lackluster in 2009; valuations losing attractiveness on a relative basis; mixed growth picture Occidental Petroleum (OXY) — good performance in 2008 and 2009 lifted valuations, leaving other major integrated energy companies more attractive Earnings Surprise History Large Cap Core Equity Dana's Large Core equity holdings continue to execute well from a fundamental standpoint Dana holdings experienced significantly more positive earnings than the S &P 500 average (89% vs. 63 %) Dana holdings also have reported far fewer negative earnings surprises (12% vs. 37 %) Ratio of Positive / Negative Earnings Surprises (Latest Qtr) Dana Large Cap Core 7.7x I S &P 500 1.7x 0.0 5.0 10.0 Performance Since Inception Although the past decade was challenging for equity investors, Dana's Large Core strategy has significantly outperformed the major U.S. equity indices since inception. Total Return Since Inception Portfolio Annualized Cumulative Dana Large Cap Core 4.48% 60.16% S &P 500 0.29% 3.18% Cumulative Return (Gross of Fees) 6/30/1999- 3/31/2010 Large Cap Core 60.16% S &P 500 3j18 % Russell 1000 : Russell 3000 12.69% Dow Jones NASDAQ r -15% -5% 5% 15% 25% 35% 45% 55% 65% nt Advisors, Dana Large Core Risk - Reward Measures Dana Large S &P 500 Dana Large Russell 1000 Cap Cap Excess Return to Benchmark 4.18% 3.66% Alpha 4.17% 3.69% Beta 0.88 0.86 Volatility 14.81% 16.01% 14.81% 16.26% Tracking Error 4.98% 5.14% Correlation to Benchmark 0.95 0.95 Batting Average (2) 0.651 0.628 Dana Large Cap portfolio performance characteristics versus S &P 500 and Russell 1000 indexes All data are annualized, since inception (6/30/1999 to 3/31/2010) Values are calculated using monthly returns (except batting average, which is quarterly) (1) Excess return is the difference between annualized returns of the Dana Large Cap composite and the benchmark (2) Batting average is the number of quarters in which the composite outperformed the benchmark divided by the total number of quarters Strong Fundamentals Large Core The table below shows Large Core holdings that have raised dividend payments since Jan. 1, 2009. Company Yield Increase Oracle Corp. 0.79% Initiated Accenture PLC. 1.70% 50.00% McDonald's Corp 3.90% 33.30% CVS Caremark Corp. 0.80% 27.10% United Technologies Corp. 2.10% 21.88% Microsoft Corp. 2.00% 18.20% Ross Stores Inc. 1.00% 15.79% Becton Dickinson & Co. 1.97% 15.79% Wal -Mart Stores, Inc. 2.00% 14.74% Coca -Cola Enterprises Inc. 1.50% 14.29% Airgas, Inc. 1.50% 12.50% Sempra Energy 2.90% 11.43% Abbott Laboratories 2.90% 11.11% Unum Group 1.50% 10.00% Texas Instruments Inc. 1.90% 10.00% International Business Machines Corp. 1.70% 10.00% Honeywell International, Inc. 2.80% 10.00% General Mills Inc. 2.70% 9.30% Nike Inc. 1.60% 8.70% General Dynamics Corp. 2.10% 8.57% Flowserve Corp. 1.00% 8.00% Philip Morris International Inc. 4.70% 7.41% Verizon Communications Inc. 6.60% 7.00% Johnson & Johnson 3.10% 6.50% Exxon Mobil Corp. 2.40% 5.00% Chevron Corp. 3.40% 4.62% XTO Energy Inc. 1.10% 4.20% Kimberly -Clark Corp. 3.80% 3.45% Occidental Petroleum Corp. 1.60% 3.10% AT &T Inc. 6.40% 2.50% H.J. Heinz Co. 4.20% 1.20% HCP Inc. 6.10% 1.10% Advisors, Q1 2010 Fixed Income Market Summary •' The $2.59 trillion of Treasury sales since the start of 2009 has added significant supply. T Treasuries traded periodically at higher rates than some corporate bonds in Q1 — a rare occurrence in the bond market. Treasury yield curve was basically unchanged for the quarter. Insurance, REITS, and brokerage sub - sectors led the corporate sector performance in Q1. Low rate environment spiked issuance of Corporate bonds across all credit quality spectrums. New issues were immediately absorbed by investors and traded higher right out of the syndicates. Lower credit quality bonds outperformed during Q1. ■ Q1 2010 ■ 1 Year ended 3/31/10 � 7.40% ' G t to C Pot 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Dana Investment Adviso Performance Attribution Fixed Income Q1 Sector Contributors Treasury: 20% sector underweight and shorter duration led to significant outperformance as this was the weakest performing sector at +1.12% Agencies: Continued to invest in 1 -time callable Agency bonds that offer 20 -40 bps yield advantage over respective bullet issues Corporates: 20% sector overweight and neutral duration led to outperformance as this was the strongest performing sector at +2.30 %. Financial bonds outperformed industrial and utility bonds, and lower credit quality performed well The portfolios in the strategy are positioned favorably against the benchmarks for the potential rising rate environment in the future. The portfolios have a lower overall duration, higher yield to maturity, higher current yield, and lower overall maturity while maintaining a similar average credit quality. Q1 Detractors Corporates: The riskiest sub - sectors within the financial sector (insurance, REITS, brokerage) performed the best. Our portfolios were underweight these to mitigate risk. The portfolios have shorter overall duration than relative benchmarks to position themselves against price volatility when rates do start to rise. Macroeconomic Background Evidence continues to mount that recession has technically ended. ➢ Housing and Employment will continue to face bumpy road. ➢ The Fed will reduce some quantitative easing programs but may hold off raising Fed Funds rate until unemployment shows marked improvement. Global growth picture continues full steam ahead, despite struggles in Europe. r Earnings and economic data continue to beat estimates. GDP 10 8 5.55 4 I -2 -4 -6 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 -- (% 1Q Ann) Gross Domestic Product, Bil. Chained 2005 $, SAAR - United States Recession Periods - United States Dana Investment Advisors, The Fed and The Economy The Fed will keep short rates low until slack in employment and industrial capacity improves. r The current inflation picture is still benign, and the Real Fed Funds rate is relatively neutral. Real Fed Funds Rate r8 r Note that the Real Fed Funds 4 rate remained elevated well 2 into the recession. Note V , VV 0 also the -0.93 prolonged 2 negative rate last decade. - - - -- - -. '95 % W '98 '99 '00 '01 '02 '03 '04 05 '06 '07 '08 '09 — Federal funds rate (effective), NSA - United States - Personal Consumption Expenditures, Excl. Food & Energy, I Recession Periods - United States Capacity Utilization 90 85 Capacity Utilization reveals a lot of 80 slack. Combined with the unemployment 75 rate, this data is 72.65 referred to as "the output 70 gap. 65 67 '69 71 73 75 77 79 81 83 '85 '87 '89 '91 '93 '95 57 '99 b1 03 b5 '07 b9 — Capacity Utilization, Total Index, Nsa - United States Recession Periods - United States Dana Investment Advisors, Employment Situation US Initial Claims for Unemployment Insurance (000's of persons) 700, 700 650 650 600 600 Initial Jobless 550 550 Claims will 500 500 continue to 450 439.00 450 decline. 400 400 350 350 300 300 250 250 200 - -- - - - - 200 '00 '01 '02 '03 •04 '05 '06 '07 b8 '09 US Unemployment Rate r11 10 9 Some 8 forecasters believe that the 7 unemployment 6 rate has peaked. 5 -4 3 '00 '01 '02 '03 '04 '05 '06 '07 -- Unemployment Rate - Percent, SA - United States Recession Periods - United States US Change in N—Farm Employment MoM Launch lull ckNa rnleasa 600 400 ,62.00 200 The March Non - Farm Payrolls -200 number was -400 positive. X00 -fioo --1,000 '00 •01 '02 '03 '04 '05 T •06 '07 •O6 ^ '09 (DIFF 1M) All Employees, Thousands Total Nonfarm SA - United States [Max: 369.00, Min: - 779.00, Last: 162.00] Recession Periods - United States 1 Dana Investment Advisors, Leading Economic Data LIS Indexof Leading Indicators (6M %, AM Launch full data release 15% 15% Recession Threshhold -4.5% 10% 10% Leading Indicators 5 0 /o 50/0 are up strongly and have maintained strength. 0°io 0% -5% -5% Jill -10% -10% '85 '86 '87 '88 '89 W '91 '92 '93 n4 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 ISM Survey 80 70 60 ISM indicates surprising strength in manufacturing. 40 30 - - _ — 20 '90 '91 '92 '93 '94 95 96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 — ISM (NAPM) Production, Index - United States Recession Periods - United States Velocity of Money 2.20 2.00 1.80 Monetary velocity has bottomed, 1.60 indicating liquidity is having desired 1.40 impact. 1.20 - -- -- - 1.00 '90 '91 '92 '93 '94 '95 '96 '97 98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 1 09 Gross Domestic Product, Bil. $, SAAR - United States / Money supply M2 (bil. $) Recession Periods - United States Dana Investment Advisors, Dana Investment Advisors, Inc. h" Un. Inv�refkv'r Nw�.awa Lvc. PORTFOLIO HOLDINGS Portfolio: 1087comp - Tequesta General Employees Pension Fund - As of 03/31/2010 Comp Shares) PAR Identifier Description Price Market Value PCL Assets Accruals Cur. Owed Yield Cash Short Term Investments 000009 Cash - Money Fund 27,536.67 1.92 .00 .01 Total Short Term Investments 27,536.67 1.92 .00 .01 Bonds Agency Bonds 10,000 31359MYN7 FANNIE MAE 4.25% Due 08/15/2010 101.48 10,148.44 .71 54.31 4.19 5,000 31359MZLO FANNIE MAE 4.75% Due 12/15/2010 103.07 5,153.52 .36 69.93 4.61 7,000 31359MHK2 FANNIE MAE 5.5% Due 03/15/2011 104.72 7,330.31 .51 17.11 5.25 10,000 31359MZ30 FANNIE MAE 5% Due 10/15/2011 106.33 10,632.81 .74 230.56 4.70 10,000 3128X26U4 FREDDIE MAC 4.35% Due 04/27/2012 106.04 10,603.75 .74 186.08 4.10 3,000 3134A4SA3 FREDDIE MAC 4.5% Due 01/15/2013 107.77 3,233.20 .23 28.50 4.18 10,000 3134A4TZ7 FREDDIE MAC 4.5% Due 07/15/2013 108.30 10,829.69 .75 95.00 4.16 5,000 3134A4UK8 FREDDIE MAC 4.875% Due 11/15/2013 109.70 5,485.16 .38 92.08 4.44 8,000 31359MA45 FANNIE MAE 5% Due 04/15/2015 110.11 8,808.75 .61 184.44 4.54 8,000 31359M7X5 FANNIE MAE 5% Due 05/11/2017 108.59 8,687.50 .61 155.56 4.60 Total Agency Bonds 80,913.13 5.64 1,113.57 4.46 Corporate Bonds 5,000 459745FP5 INTL LEASE FINANCE CORP 5% Due 04/15/2010 99.38 4,968.75 .35 115.28 5.03 5,000 500255AM6 KOHLS CORPORATION 6.3% Due 03/01/2011 104.63 5,231.25 .36 26.25 6.02 5,000 06423AAQ6 BANK ONE CORP 5.9% Due 11/15/2011 106.35 5,317.63 .37 111.44 5.55 5,000 587499A46 MERCANTILE SAFE DEP & TR 5.7% Due 11/15/2011 104.85 5,242.40 .37 107.67 5.44 10,000 233835AT4 DAIMLER FINANCE NA LLC 7.3% Due 01/15/2012 108.88 10,887.50 .76 154.11 6.70 25,000 205363AKO COMPUTER SCIENCES CORP 5.5% Due 03/15/2013 107.38 26,843.75 1.87 61.11 5.12 5,000 054303AQ5 AVON PRODUCTS INC 4.625% Due 05/15/2013 105.38 5,268.75 .37 87.36 4.39 10,000 007924AFO AEGON NV 4.75% Due 06/01/2013 105.09 10,509.38 .73 158.33 4.52 5,000 38141GDQ4 GOLDMAN SACHS GROUP INC 5.25% Due 10/1512013 107.54 5,376.83 .37 121.04 4.88 5,000 774341AA9 ROCKWELL COLLINS 4.75% Due 12/01/2013 106.21 5,310.73 .37 79.17 4.47 5,000 90333WAB4 US BANK NA 6.3% Due 02/04/2014 111.25 5,562.50 .39 49.88 5.66 10,000 172967CK5 CITIGROUP INC 5.125% Due 05/05/2014 102.63 10,262.50 .72 207.85 4.99 10,000 0258MOCZO AMER EXPRESS CREDIT CO 5.125% Due 08/25/2014 106.13 10,612.50 .74 51.25 4.83 10,000 7591EPAF7 REGIONS FINANCIAL CORP 7.75% Due 11/10/2014 105.50 10,550.00 .74 303.54 7.35 10,000 36962G4G6 GENERAL ELEC CAP CORP 3.75% Due 11/14/2014 101.38 10,137.50 .71 140.63 3.70 10,000 824348AN6 SHERWIN - WILLIAMS CO 3.125% Due 12/1512014 100.63 10,062.50 .70 86.81 3.11 10,000 61747YCL7 MORGAN STANLEY 4.1% Due 01126/2015 99.63 9,962.50 .69 74.03 4.12 25,000 65535HAA7 NOMURA HOLDINGS INC 5% Due 03/04/2015 102.13 25,531.25 1.78 93.75 4.90 10,000 263534BX6 E.I. DU PONT DE NEMOURS 4.75% Due 03/15/2015 107.00 10,700.00 .75 21.11 4.44 5,000 40429CCR1 HSBC FINANCE CORP 5.25% Due 04/15/2015 104.63 5,231.25 .36 121.04 5.02 5,000 548661CH8 LOWES COMPANIES INC 5% Due 10/15/2015 109.25 5,462.50 .38 115.28 4.58 5,000 92976GAE1 WACHOVIA BANK NA 5.6% Due 03/15/2016 104.63 5,231.25 .36 12.44 5.35 25,000 06051GEA3 BANK OF AMERICA CORP 6.5% Due 08/0112016 108.00 27,000.00 1.88 270.83 6.02 10,000 06739FGF2 BARCLAYS BANK PLC 5% Due 09/22/2016 102.75 10,275.00 .72 12.50 4.87 10,000 78355HJK6 RYDER SYSTEM INC 5.85% Due 11/01/2016 104.71 10,471.00 .73 243.75 5.59 5,000 494368BB8 KIMBERLY -CLARK 6.125% Due 08/01/2017 111.91 5,595.65 .39 51.04 5.47 5,000 48121CYK6 JP MORGAN CHASE BANK NA 6% Due 10101/2017 106.72 5,336.23 .37 150.00 5.62 10,000 06739FFS5 BARCLAYS BANK PLC 6.75% Due 05122/2019 110.75 11,075.00 .77 241.88 6.09 10,000 24702RAJO DELL INC 5.875% Due 06/1512019 108.38 10,837.50 .76 172.99 5.42 20,000 828807CD7 SIMON PROPERTY GROUP LP 5.65% Due 02/01/2020 97.88 19,575.00 1.36 207.17 5.77 Total Corporate Bonds 304,428.60 21.22 3,649.53 5.22 Mortgage Bonds 7,027.93 3128P7BG7 FG C90939 5.5% Due 12/01/2025 106.46 7,482.04 .52 32.21 5.17 6,106.58 3128P7CP6 FG C90978 6% Due 07/01/2026 108.01 6,595.74 .46 30.53 5.56 6,870.39 3128P7CU5 FG C90983 5.5% Due 08101/2026 106.46 7,314.32 .51 31.49 5.17 1 Dana Investment Advisors, Inc. PORTFOLIO HOLDINGS Portfolio: 1087comp - Tequesta General Employees Pension Fund - As of 03/31/2010 Comp Shares! PAR Identifier Description Price Market Value Pct Assets Accruals Cur. Owed Yield 7,719.74 31410BGA6 FN 884093 6% Due 05/01/2036 106.39 8,213.04 .57 38.60 5.64 Total Mortgage Bonds 29,605.14 2.06 132.83 5.38 Taxable Bond Funds 50 GVI iShares Lehman Intermediate 106.13 5,306.43 .37 .00 3.18 335 MBB Ishares Lehman Mbs Fixed -Rat 107.05 35,861.75 2.50 .00 3.62 Total Taxable Bond Funds 41,168.18 2.87 .00 3.56 Treasury Bonds 15,000 912828E.15 US TREASURY N/B 4.25% Due 10/15/2010 102.14 15,321.09 1.07 292.48 4.16 10,000 912828FW5 US TREASURY N/B 4.625% Due 10/31/2011 106.08 10,607.81 .74 192.92 4.36 15,000 912828HTO US TREASURY N/B 2.75% Due 02/28/2013 103.48 15,522.66 1.08 34.75 2.66 5,000 912828DV9 US TREASURY N/B 4.125% Due 05/15/2015 107.58 5,378.91 .37 77.49 3.83 5,000 912828EE6 US TREASURY N/B 4.25% Due 08/15/2015 108.00 5,400.00 .38 25.83 3.94 5,000 912828FF2 US TREASURY N/B 5.125% Due 05/15/2016 112.20 5,610.16 .39 96.27 4.57 15,000 912828GH7 US TREASURY N/B 4.625% Due 02/15/2017 108.91 16,335.94 1.14 84.32 4.25 7,000 912828HH6 US TREASURY N/B 4.25% Due 11/15/2017 105.77 7,403.59 .52 111.77 4.02 Total Treasury Bonds 81,580.16 5.69 915.83 3.90 Total Bonds 537,695.21 37.48 5,811.76 4.79 Stocks Domestic Equity Strategy 93 MMM 3M Co 83.57 7,772.01 .54 .00 2.51 220 ABT Abbott Laboratories 52.68 11,589.60 .81 .00 3.34 360 ACN Accenture PLC 41.95 15,102.00 1.05 .00 1.79 203 ADBE Adobe Systems Inc 35.37 7,180.11 .50 .00 .00 119 AFL Aflac Inc 54.29 6,460.51 .45 .00 2.06 188 AEP American Electric Power Co 34.18 6,425.84 .45 .00 4.80 133 AXP American Express Co 41.26 5,487.58 .38 23.94 1.75 158 AMP Ameriprise Financial Inc 45.36 7,166.88 .50 .00 1.50 219 ABC AmerisourceBergen Corp 28.92 6,333.48 .44 .00 1.11 348 NLY Annaly Capital Management In 17.18 5,978.64 .42 226.20 15.13 53 APA Apache Corp 101.50 5,379.50 .37 .00 .59 79 AAPL Apple Inc 235.00 18,565.00 1.29 .00 .00 223 T AT &T Inc 25.84 5,762.32 .40 .00 6.50 128 BMO Bank of Montreal 60.70 7,769.60 .54 .00 4.43 151 BBY Best Buy Cc Inc 42.54 6,423.54 .45 .00 132 276 BMY Bristol -Myers Squibb Co 26.70 7,369.20 .51 88.32 4.79 142 CTL Century Tel Inc 35.46 5,035.32 .35 .00 8.18 89 CVX Chevron Corp 75.83 6,748.87 .47 .00 3.59 110 CHD Church & Dwight Co Inc 66.95 7,364.50 .51 .00 .84 609 CSCO Cisco Systems Inc 26.03 15,852.27 1.10 .00 .00 188 COH Coach Inc 39.52 7,429.76 .52 .00 .76 84 CL Colgate- Palmolive Cc 85.26 7,161.84 .50 .00 2.49 376 CMCSA Comcast Corp (A) 18.83 7,080.08 .49 .00 2.01 590 CAG Conagra Foods Inc 25.07 14,791.30 1.03 .00 3.19 128 COP Conocophillips 51.17 6,549.76 .46 .00 4.30 146 CBE Cooper Industries Inc 47.94 6,999.24 .49 39.42 2.25 216 OVA Davita Inc 63.40 13,694.40 .95 .00 .00 141 DOV Dover Corporation 46.75 6,591.75 .46 .00 2.22 50 DD Du Pont (E.I.) De Nemours 37.24 1,862.00 .13 .00 4.40 296 EBAY Ebaylnc 26.97 7,982.38 .56 .00 .00 842 EMC EMC Corp 18.04 15,189.68 1.06 .00 .00 89 XOM Exxon Mobil Corp 66.98 5,961.22 .42 .00 2.51 72 FLS Flowserve Corp 110.27 7,939.44 .55 20.88 1.05 87 FMC FMC Corp 60.54 5,266.98 .37 10.88 .83 . t Dana Investment Advisors, Inc. PORTFOLIO HOLDINGS Portfolio: 1087comp - Tequesta General Employees Pension Fund - As of 03/31/2010 Comp Sham/ PAR Identifier Description Price Market Value Pct. Assets Accruals Cur. Owed Yield 116 FCX Freeport - Mcmoran Copper 83.54 9,690.64 .68 .00 .72 104 GO General Dynamics Corp. 77.20 8,028.80 .56 .00 2.18 438 GE General Electric Co 18.20 7,971.60 .56 43.80 2.20 96 GIS General Mills Inc 70.79 6,795.84 .47 .00 2.77 34 GS Goldman Sachs Group Inc 170.63 5,801.42 .40 .00 .82 15 GOOG Google Inc -CI A 567.12 8,506.80 .59 .00 .00 302 HPQ Hewlett- Packard Co 53.15 16,051.30 1.12 11.36 .60 363 HCBK Hudson City Bancorp Inc 14.17 5,143.71 .36 .00 4.23 111 IBM International Business Machine 128.25 14,235.75 .99 .00 1.72 186 JNJ Johnson & Johnson 65.20 12,127.20 .85 .00 3.01 247 JPM JP Morgan Chase 44.75 11,053.25 .77 .00 .45 213 KMB Kimberly -Clark Corp 62.88 13,393.44 .93 67.32 4.20 76 LH Laboratory Crp Of Amer Hldgs 75.71 5,753.96 .40 .00 .00 142 LZ Lubrizol Corp 91.72 13,024.24 .91 .00 1.35 298 MAT Mattel Inc 22.74 6,776.52 .47 .00 3.30 102 MCK Mckesson Corp 65.72 6,703.44 .47 12.24 .73 90 MHS Medco Health Solutions Inc 64.56 5,810.40 .40 .00 .00 153 MET Metlife Inc 43.34 6,631.02 .46 .00 1.71 260 MCHP Microchip Technology Inc 28.16 7,321.60 .51 .00 4.84 453 MSCC Microsemi Corp 17.34 7,855.02 .55 .00 .00 501 MSFT Microsoft Corp 29.29 14,673.04 1.02 .00 1.78 476 MYL Mylan Laboratories Inc 22.71 10,809.96 .75 .00 .00 116 NFX Newfield Exploration Co 52.05 6,037.80 .42 .00 .00 282 NE Noble Corp 41.82 11,793.24 .82 .00 .45 100 NOC Northrop Grumman Corp 65.57 6,557.00 .46 .00 2.62 106 NVS Novartis AG (ADS) 54.10 5,734.60 .40 .00 3.11 150 OKE Oneok Inc 45.65 6,847.50 .48 .00 3.86 579 ORCL Oracle Corp 25.71 14,886.09 1.04 .00 .78 87 PNRA Panera Bread Co (CL A) 76.49 6,654.63 .46 .00 .00 110 PEP Pepsico Inc 66.16 7,277.60 .51 .00 2.72 122 PRGO Perrigo Co 58.72 7,163.84 .50 .00 .43 268 PM Philip Morris International 52.16 13,978.88 .97 74.24 4.45 136 PNC PNC Financial Services Group 1 59.70 8,119.20 .57 .00 .67 54 PCP Precision Castpans Corp 126.71 6,842.34 .48 .00 .09 30 PCLN Priceline Com Inc 255.00 7,650.00 .53 .00 .00 136 ROST Ross Stores Inc 53.47 7,271.92 .51 .00 1.20 952 SLE Sara Lee Corp 13.93 13,261.36 .92 46.20 3.16 62 SRE Sempra Energy 49.90 3,093.80 .22 .00 3.13 123 TGT Target Corp 52.60 6,469.80 .45 .00 1.29 104 TEVA Teva Pharmaceutical -SP ADR 63.08 6,560.32 .46 .00 .85 542 TXN Texas Instruments Inc 24.47 13,262.74 .92 .00 1.96 196 UNP Union Pacific Corp 73.30 14,366.80 1.00 27.00 1.47 93 UTX United Technologies Corp 73.61 6,845.73 .48 .00 2.31 212 UNH Unitedhealth Group Inc 32.67 6,926.04 .48 .00 .09 314 UNM Unum Group 24.77 7,777.78 .54 .00 1.33 202 VIA/B Viacom Inc -Class B 34.38 6,944.76 .48 .00 .00 243 WMT Wal -Mart Stores Inc 55.60 13,510.80 .94 34.48 2.18 156 WHR Whirlpool Corp 87.25 13,611.00 .95 .00 1.97 548 WMB Williams Cos Inc 23.10 12,658.80 .88 .00 1.90 295 XLNX Xilinx Inc 25.50 7,522.50 .52 .00 2.51 Total Domestic Equity Strategy 734,052.42 51.16 726.28 1.87 International Equity Strategy 867 AEG Aegon N.V. -Ny Reg Shr 6.81 5,904.27 .41 .00 .00 707 AZSEY Allianz SE -ADR 12.58 8,892.01 .62 .00 3.25 Dana Investment Advisors, Inc. PORTFOLIO HOLDINGS Portfolio: 1087comp - Tequesta General Employees Pension Fund - As of 03/31/2010 Comp Sharest PAR Identifier Description Price Market Value Pct Assets Accruals Cur. Owed Yield 450 AV Aviva PLC 11.99 5,395.50 .38 204.19 3.79 93 BASFY BASF S.E. 62.23 5,787.33 .40 .00 3.04 94 BP BP PLC (ADS) 57.07 5,364.58 .37 .00 5.89 193 CAJ Canon Inc -Spons ADR 46.21 8,918.53 .62 .00 2.41 805 CX Cemex Sab -Spons ADR Part Cer 10.21 8,219.05 .57 .00 .00 168 CCU CIA Cervecerias Unidas -ADR 37.51 6,301.68 .44 .00 3.38 323 DNSKY Danske Bank A/S- Unspons ADR 12.32 3,980.33 .28 .00 .00 128 DBSDY DBS Group Holdings Ltd 40.91 5,237.00 .36 .00 2.90 180 EONGY E.ON AG - Sponsored ADR 36.99 6,658.90 .46 .00 4.07 127 HENOY Henkel KGAA - Spons ADR 53.85 6,839.41 .48 .00 .90 374 KT KT Corp -Sp Adr 20.76 7,764.24 .54 .00 1.48 493 MAKSY Marks & Spencer PLC - ADR 11.23 5,535.45 .39 .00 3.99 44 PKX Posco ADR 117.01 5,148.44 .36 .00 1.23 176 SNY Sanofi- Aventis -ADR 37.36 6,575.36 .46 .00 3.27 249 TMX Telefonos De Mexico -Sp ADR L 15.60 3,884.40 .27 43.15 4.40 198 TNTTY TNT Nv - ADR 28.73 5,687.85 .40 .00 2.03 83 TM Toyota Motor Corp -Spon ADR 80.42 6,674.86 .47 .00 1.36 155 VIVDY Vivendi 26.81 4,155.83 .29 .00 5.28 155 YARIY Yara International -ADR 43.47 6,737.20 .47 .00 1.31 228 ZFSVY Zurich Financial Svcs -ADR 25.68 5,855.15 .41 .00 4.86 Total Intemational Equity Strategy 135,517.37 9.45 247.34 2.57 Total Stocks 869,569.79 60.61 973.62 1.98 Total Portfolio 1,434,801.67 Interest Receivable 0.00 Paydown Receivable 0.00 Accruals 5,811.76 Dividends Accrued 973.62 Total Portfolio with Accruals & Receivables 1,441,587.05 The market prices shown on these pages represent the last reported sale on the stated report date as to listed securities or the bid price in the case of over - 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 ha ve a dollar price lower than the round lot quote. Where no regular market exists, prices shown are estimates by sources considered reliable by Dana Investment Advisors. While the prices are obtained from sources we consider reliable, we cannot guarantee them. Dana Investment Advisors /s not a custodian. Clients should be receiving detailed statements from their custodian at least quarterly While Dana Investment Advisors regularly reconciles to custodian information, we encourage clients to review their custodian statement(s). Village of Tequesta General Employees' Pension Broker Account Data as 3-31-10 • • ns Repo Broker Name Shares Comm Rate Net Amount Commission Capital Institutional Services 4,558 0.0317 127,177.97 144.28 Insti net 3,680 0.0347 98,977.77 127.71 Weeden 698 0.0573 39,429.66 40.00 Tota Is 8,936 0.0349 265 311.991 Dana Investment Advisors, Inc. i, .F - V. . ... .. ";.fi .' v. it •`'" r 4 4."