HomeMy WebLinkAboutPension General_Documentation_Tab 15_08/06/2007^^^^^^^^^^^^^^^^^^^^i^^^^^^^^^^^
Tequesta General Employees'
Pension Fund
-.~
.~£`
DANA INVESTMENT ADVISORS, INC.
Aubust 6, 2007
DANA INVEST;vtENT ADVISORS, INC.
r^^^^^^^^^^^^r^^^^^^^^^^^^^^^^^^
PERFORMANCE
^^^^^^^^^^^^^^^^^^^^^^^^r^^^^^^^
Account Profile
Investment Objectives: Obtain a reasonable total rate of return, 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. Managers performance to be in the top 40% of Mobius
Universe. Total Return to be equal to actuarial earnings assumption
and equal or exceed CPI plus 3% over 3-5 year cycle.
Comparative Indices: 60% S&P 500
40% Lehman Govt/Credit Intermediate
Investment Restrictions: Not more than 5% of funds 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 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.
DANA INVESTMENT ADVISORS, INC.
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3
4
Performance vs Comparables (Gross of Fees)
Total Return Through 6-30-07
Bonds Equities Total Portfolio
2nd Qtr
Fiscal Year-
2nd Qtr
Fiscal Year-
2nd Qtr
Fiscal Year- Average Annual
~'
2007£
to-Date *
2007"
to-Date ~
2007`
to-Date Since Inception
10-03-OS
Tequesta General Employees -0.25% 2.44% 6.34% 16.44% 3.73% 10.44% 12.57%
Lehman Govt/Corp Intermediate -0.15% 2.49%
S&P 500 6.28% 14.12%
Blend:
60% S&P 500
3.71% 9.47% 10.08%
40% Lehman G/C Intermediate
Unannualized
Current Asset Allocation
Fiscal Year 9-30 Bonds Stocks Cash
35% 59% 6%
"The information set forth above is based upon information believed to be accurate and reliable but we do not guarantee its accuracy."
DANA INVESTMENT ADVISOFS, INC.
5
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Bond Characteristics ~~s Comparables
Portfolio Characteristics
Current
Average
Effective
Credit Quality Annualized Yield to Coupon Duration
Maturity C~ Market
Tequesta General Employees AAA 5.38% 5.13% 3.35
LB G/C Intermediate AA+ 5.33% 5.11% 3.67
As of October 2005, the Portfolio's inception, the Yield to Maturity was 4.82%.
The Portfolio's yield has increased 0.56% resulting in a potential annual yield increase on
a $ 344,000 portfolio of $ 1,926.
"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, INC.
6
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OUTLOOK
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Treasury Yield Curve
5.5
5.0
4.5
4.0
3.5
- ------------
- --------------------
03 Months 06 Months
Jul 18, 2007 4.9.5 5.04
-Dec 31, 2006 5.04 5.06
DANA INVESTMENT ADVISORS, INC.
02 Years OS Years 10 Years
4.84 4.92 5.02
4.79 4.68 4.68
30 Years
5.12
4.79
Current Economic Environment
- Earnings growth has been in the mid teens for more than four years.
- Economic activity is reaccelerating. Real GDP growth was 3.1% in 2005 and 2006, and
should be around 3% this year.
- Housing slump is still in the early stages - no telling how deep.
- Personal income growth, now at 6% per year, will prevent the housing slump from
significantly affecting the economy.
- Inflation, pushed by wage growth, will pressure the Fed to stay above 5% indefinitely.
- Core inflation remains above the Fed comfort level.
- Unemployment is low.
- The next Fed move maybe an increase.
7-17-07
DANA INVESTMENT ADVISORS, INC.
8
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tD.S, Dollar Index
25
~~~
~~
~Of
~`
00
75 I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ <~u~~e: oµ~~,~,Re~~ ~
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~ G1 G1 ~~ ~ O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O
G1 G~ G1 G1 G1 G1 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O
~-+ ~--i ,--i ~--i .--~ r--i N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N
r~•
DANA INVESTMENT ADV ISOR S, INC.
9
Building Permits in Thousands
450
Housing still weak....
zoo
1950
1700
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0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N
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r--, w ~ ~ ~ ~-, Q v~ Z C~ ~--, w ~ Q ~ ~, Q cr~ 2 , ~ ~ ~ ~, d Z ~ ~ ,
DANA INVESTMENT ADVISORS, INC.
Source: Bloomherk
10
IVlarket Revie~T
Equity markets worldwide experienced an acceleration in their upward trend during the spring of 2007.
While small and mid-cap stocks led the market rally in the first quarter, large and mega-cap stocks led the
pack in the second period.
the S&P 500 returned 6.3% in the quarter, while the Russell 2000 and Russell Mid-cap indices posted
eturns of 4.4% and 5.3% respectively. Continued weakness in the U.S. dollar helped International stocks
ontinue their out-performance trend versus most U.S. equity indices, as the MSCI EAFE International
ndex returned 6.7% in the quarter.
Market volatility increased significantly in the latter part of the quarter. Negative news regarding sub-prime
nortgage loan holdings at several large hedge funds caused many institutional investors to re-evaluate their
olerance for credit risk. Credit spreads and interest rates subsequently broke into higher trading ranges
Icross most global bond markets. The yield on the 10 year U.S. Treasury bond, for example, started the
iuarter at roughly 4.65%, but spiked as high as 5.3% in early June before finishing the period near the 5%
evel.
volatility in interest rates had a predictably negative impact on many interest sensitive segments of the
-ket. Utilities, REITs, and other financials generally lagged the overall market by a wide margin, while the
rgy and technology components of the S&P 500 experienced double digit returns in the second quarter.
~inancial and utility shares have much greater representation within the value vs. growth indices, so it is not
urprising that growth led value by a significant margin in the second quarter. This trend was evident across
11 market cap styles, and it appears increasingly likely that the multi-year run of the value style's out-
~erformance versus growth has come to an end. 7-17-07
DANA INVESTIvIENT ADVISORS, INC.
11
Outlook for 2007
12
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ASSET ALLOCATION
^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^
Asset Alloc~ri~n as of 6-30-07
Government Bonds
$Ip2 non
Federal Agencies
$87,539
9%
Corpora
$95
1C
DANA INVESTMENT ADVISORS, INC.
Fixed Rate Mtg Pools
Dana International
$78,002
8%
Money Market
$61.377
~ 1 io
°iva b les
Cap
33
13
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Lame Cad Sector Distribution as of 6-30-07
2
2
1
1
1
1
1
DANA INVESTMENT ADVISORS, INC.
14
Financials Information Health Care Industrials Energy Consumer Consumer Telecomm Utilities Materials
Technology Discretionary Staples Ser~lces
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CURRENT HOLDINGS
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Dana Investment Advisors
PORTFOLIO APPRAISAL
1087
Tequesta General Employees' Pension Fund
June 30. 2007
Market Pct.
Quantity Security Price _ Value Assets
CASH AND EQUIVALENTS
Cash -Money Fund 61,377.23 6.2
61,377.23 6.2
COMMON STOCK
Dana Large Cap
230 AT&T Inc. 41.50 9,545.00 1.0
165 Allstate Corporation 61.51 10,149.15 1.0
l l 5 Altria Group Inc. 70.14 8,066.10 0.8
215 American Capital Strategies 42.52 9,141.80 0.9
500 Applied Materials Inc. 19.87 9,935.00 1.0
184 Bank of America Corporation 48.89 8,995.76 0.9
66 Bear Stearns Companies Inc. 140.00 9,240.00 0.9
130 Becton Dickinson & Co 74.50 9,685.00 1.0
180 Best Buy Inc. 46.67 8,400.60 0.8
180 CIT Group 54.83 9,869.40 1.0
420 Cadence Design Systems 21.96 9,223.20 0.9
130 Caterpillar Inc. 78.30 10,179.00 1.0
350 Cisco Systems 27.85 9,747.50 1.0
170 Citigroup Inc. 51.29 8,719.30 0.9
280 Citrix Systems Inc 33.67 9,427.60 1.0
120 Conocophillips 78.50 9,420.00 0.9
100 Eaton Corp. 93.00 9,300.00 0.9
125 Ensco International Inc. 61.01 7,626.25 0.8
110 Exxon Mobil Corporation 83.88 9,226.80 0.9
149 Fiserv Inc. 56.80 8,463.20 0.9
160 General Mills Inc. 58.42 9,347.20 0.9
185 Harris Group 54.55 10,091.75 1.0
102 Hartford Financial Services 98.51 10,048.02 1.0
460 Intel Corporation 23.74 10,920.35 1.1
90 International Business Machines Corp. 105.25 9,472.50 1.0
120 J. C. Penney Company 72.38 8,685.60 0.9
192 J. P. Morgan Chase & Company 48.45 9,302.40 0.9
150 Johnson & Johnson 61.62 9,243.00 0.9
105 Johnson Controls Inc. 115.77 12,155.85 1.2
135 Kimberly-Clark Corp. 66.89 9,030.15 0.9
100 Lockheed Martin Corporation 94.13 9,413.00 0.9
188 Marathon Oil Corp.
1 59.96 11,272.48 1.1
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Dana Investment Advisors
PORTFOLIO APPRAISAL
1087
Tequesta Genera! Employees' Pension Fund
Jtrne 30, 2007
Quantity
_ Security __
Price Market
Value Pct.
Assets
140 McKesson Corp. 59.64 8,349.60 0.8
149 MetLife Inc 64.48 9,607.52 1.0
40 Microsoft Corporation 29.47 1,178.80 0.1
20 Morgan Stanley 83.88 1,677.60 0.2
290 Mylan Laboratories 18.19 5,275.10 0.5
190 Nordstrom Inc 51.12 9,7 ] 2.80 1.0
110 PPG Industries Inc. 76.11 8,372.10 0.8
210 PPL Corporation 46.79 9,825.90 1.0
100 Parker Hannifin Corp. 97.91 9,791.00 1.0
260 Pepsi Bottling Group Inc. 33.68 8,756.80 0.9
330 Pfizer Inc. 25.57 8,438.10 0.9
120 Praxair Inc. 71.99 8,638.80 0.9
150 Safeco Corp 62.26 9,339.00 0.9
160 Sempra Energy 59.23 9,476.80 I.0
210 Supervalu Inc. 46.32 9,727.20 1.0
128 United Technologies Corp 70.93 9,079.04 0.9
117 V F Corporation 91.58 10,714.86 1.1
130 Valero Energy Corp. 73.86 9,601.80 1.0
240 Verizon Communications 41.17 9,880.80 1.0
180 Wachovia Corporation 51.25 9,225.00 0.9
50 Wal-Mart Stores Inc. 48.1 1 2,405.50 0.2
230 Waste Management Inc. 39.05 8,981.50 0.9
130 Wellpoint Health Networks 79.83 10,377.90 1.0
149 Wyeth 57.34 8,543.66 0.9
130 XTO Energy Inc. 60.10 7,813.00 0.8
508,133.14 51.2
Dana International ADR
195 Aegon NV ADR 19.65 3,831.75 0.4
51 BT Group PLC ADR 66.58 3,395.58 0.3
52 British American Tob - SP ADR 69.14 3,595.28 0.4
71 Canon ADR 58.64 4,163.44 0.4
148 Cemex ADR 36.90 5,461.20 0.6
170 Danske Bank A/S - Unspons ADR 20.70 3,519.00 0.4
80 E.ON AG ADR 55.64 4,451.20 0.4
86 Endurance Holdings ADR 40.04 3,443.44 0.3
142 KT Corporation ADR 23.46 3,331.32 0.3
253 Koninklijke Ahold NV ADR 12.52 3,167.56 0.3
z
16
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Dana Investment Advisors
PORTFOLIO APPRAISAL
1087
Tequesta Genera[ Employees' Pension Fund
June 30, 2007
Market Pct.
Quantity Security Price Value Assets
36 Marks & Spencer Group PLC ADR 76.10 2,739.60 0.3
236 NTT DoCoMo ADR 15.80 3,728.80 0.4
36 Petrobras CL A ADR 106.68 3,840.48 0.4
88 Sanofi Aventis ADR 40.27 3,543.76 0.4
134 Telecom Italia S.P.A. CL A ADR 22.02 2,950.68 0.3
119 Telefonos de Mexico ADR 37.89 4,508.91 0.5
34 Toyota Motor Corp - Spon ADR 125.88 4,279.92 0.4
43 Woori Finance Holdings ADR 76.54 3,291.22 0.3
167 Woseley PLC ADR 24.19 4,039.73 0.4
110 Yara International ADR 30.10 3,311.00 0.3
111 Zurich Financial Svcs -ADR 30.70 3,407.70 0.3
78,001.57 7.9
586,134.71 59.1
CORPORATE BONDS
5,000.00 Carolina Power & Light 100.12 5,005.85 0.5
6.800% Due 08-15-07
5,000.00 Cit Group Inc. 99.15 4,957.60 0.5
4.750% Due 08-15-08
5,000.00 CSX Corp 100.81 5,040.45 0.5
6.250% Due 10-15-08
6,000.00 Deutsche Bank Financial 103.78 6,226.56 0.6
7.500% Due 04-25-09
5,000.00 Target Corp. 99.98 4,999.15 0.5
5.375% Due 06-15-09
5,000.00 Countrywide Home Loan 100.05 5,002.50 0.5
5.620% Due 07-15-09
5,000.00 Intl Lease Finance Corp 98.82 4,941.05 0.5
5.000% Due 04-15-10
5,000.00 Capital One Bank 100.47 5,023.70 0.5
5.750% Due 09-15-10
5,000.00. Lehman Brothers Inc. 97.81 4,890.55 0.5
5.000% Due 01-14-11
5,000.00 Kohls Corporation 102.40 5,119.80 0.5
6.300% Due 03-01-11
5,000.00 Washington Mutual Inc. 99.23 4,961.40 0.5
5.500% Due 08-24-11
3 17
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Dana Investment Advisors
PORTFOLIO APPRAISAL
1087
Tequesta General Employees' Pension Fund
June 30, 2007
Market Pct.
Quantity Security Price Value Assets
5,000.00 Bank One Corp 101.43 5,071.60 0.5
5.900% Due 11-15-11
5,000.00 Gannett Co Inc. 101.80 5,090.20 0.5
6.370% Due 04-01-12
5,000.00 Avon Products Inc. 94.59 4,729.70 0.5
4.620% Due OS-15-13
5,000.00 Goldman Sachs Group Inc. 96.94 4,847.15 0.5
5.250% Due 10-15-13
5,000.00 US Bank NA 103.39 5,169.40 0.5
6.300% Due 02-04-14
5,000.00 HSBC Finance Corp. 95.53 4,776.65 0.5
5.250% Due 04-15-15
5,000.00 Lowe's Companies Inc. 94.62 4,731.05 0.5
5.000%Due 10-15-15
5,000.00 Wachovia Bank NA 98.17 4,908.60 0.5
5.600% Due 03-15-16
95,492.96 9.6
FEDERAL AGENCY SECURITIES
10,000.00 Federal Home Loan Bank Bond 99.62 9,962.50 1.0
4.125% Due 10-19-07
10,000.00 Federal Home Loan Mortgage Corp. 100.33 10,032.80 1.0
5.750%Due 04-15-08
10,000.00 *Federal National Mortgage Association 100.11 10,010.90 1.0
5.250% Due 01-15-09
10,000.00 Federal Home Loan Mortgage Corp. 100.92 10,092.20 1.0
5.750% Due 03-15-09
10,000.00 Federal National Mortgage Association 100.41 10,040.60 1.0
5.375% Due 08-15-09
5,000.00 Federal National Mortgage Association 98.45 4,922.65 0.5
4.750% Due 12-15-10
7,000.00 Federal National Mortgage Association 100.78 7,054.67 0.7
5.500% Due 03- 15-11
10,000.00 Federal National Mortgage Association 98.92 9,892.20 1.0
5.000% Due 10-15-11
3,000.00 Federal Home Loan Mortgage Corp. 96.02 2,880.48 0.3
4.500%Due 01-15-13
a 18
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Dana Investment Advisors
PORTFOLIO APPRAISAL
1087
Tequesta General Employees' Pension Fund
June 30, 2007
Quantity
Security
Price Market
Value Pct.
Assets
5,000.00 Federal Home Loan Mortgage Corp. 97.34 4,867.20 0.5
4.875%Due 11-15-13
8,000.00 Federal National Mortgage Association 97.28 7,782.48 0.8
5.000% Due 04-15-15
87,538.68 8.8
GOVERNMENT BO NDS
5,000.00 U.S. Treasury Bill 99.95 4,997.30 0.5
0.000% Due 07-OS-07
10,000.00 U.S. Treasury Notes 99.80 9,979.69 1.0
4.000% Due 09-30-07
20,000.00 U.S. Treasury Notes 99.11 19,821.87 2.0
4.120% Due 08-15-08
10,000.00 U.S. Treasury Notes 101.1 l 10,110.94 1.0
5.500% Due 05-15-09
15,000.00 U.S. Treasury Notes 98.1 l 14,716.41 1.5
4.250%Due 10-15-10
10,000.00 U.S. Treasury Notes 98.86 9,885.94 1.0
4.625% Due 10-31-11
10,000.00 U.S. Treasury Notes 96.58 9,657.81 1.0
4.250% Due 08-15-13
5,000.00 U.S. Treasury Notes 94.91 4,745.31 0.5
4.250% Due 08-15-15
5,000.00 U.S. Treasury Notes 100.59 5,029.69 0.5
5.120% Due OS-15-16
15,000.00 U.S. Treasury Notes 96.89 14,533.59 1.5
4.625% Due 02-15-17
103,478.55 10.4
FIXED RATE MORTGAGE POOLS
FNMA
13,432.04 FNMA 884093 5-1-06
6.000% Due OS-O1-36
98.75 13,264.14 13
FHLMC
12,800.86 FHLMC C90939 12-1-OS 97.31 12,456.52 1.3
5.500% Due 12-01-25
5 19
Dana Investment Advisors
PORTFOLIO APPRAISAL
1087
Tequestu Genera/ Employees' Pension Fund
June 30, 2007
Quantity Security Price
13,459.87 FHLMC GOLD C90978 7-1-06 99.75
6.000% Due 07-01-26
14,113.25 FHLMC C90983 8-1-06 97.13
5.500% Due 08-01-26
Accrued Income
Dividends Receivable
Interest Receivable
TOTAL ACCRUED AND RECEIVABLE
TOTAL PORTFOLIO
The market prices shown on these pages represent the last reported sa/eon the vnk~ation date as to listed securities or the
bid price in the case oJover-the-counter quotations. Prices on bonds and some other investments are based on round lot
price quotations and are jor evaluation purposes only and mny 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 no regular market exists,
prices shown are esfimates by sources considered reliable by Dann Investment Advisors, Inc. While the prices are obtained
from sources we consider reliable, we cannot guarantee them
Market
Value
13,426.22
13,708.20
39,590.94
52,855.08
4,138.67
736.34
206.85
Pct.
Assets
1.4
1.4
4.0
5.3
0.4
0.1
5,081.86 0.5
991,959.07 100.0
6 20