HomeMy WebLinkAboutPension General_Documentation_Tab 05_05/07/2007
Tequesta General Employees'
Pension Fund
,~;
~~
DANA INVESTMENT ADVISORS, INC.
May 7, 2007
DANA INVESTMENT ADVISORS, INC.
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PERFORMANCE
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.
2
3
Performance vs Comparables (Gross of Fees)
Bonds ~Equir_ies Total Port
1st Qt,•
.2007 ~ Fiscal Yea r-
to-Date * l st Qtr
2007 * Fiscal Fear-
to-Date * I st Qtr
2007 ~ Fiscal 1'exr-
to-Date
Tequesta General Employees 1.59% 2.70% 3.28% 9.50% 2.54% 6.47%
Lehman Govt/Corp Intermediate
S&P 500
Blend:
60% S&P 500
40% Lehman G/C Intermediate
* Unannualized
Fiscal Year 9-30
1.59% 12.64%
0.64% 17.38%
Since [nce
12.04%
1.02% 15.48% I 9.16%
Current Asset Allocation
Bonds Stocks Cash
36% 60% 4%
"The information set forth above is based upon information believed to be accurate and reliable but we do not guarantee its accuracy."
DANA INVESTMENT ADVLSORS, INC.
4
Bond Characteristics vs Comparables
__
Portfolio Characteristics
Current
Average Effective
Credit Quality Annualized Yield to Coupon Duration
Tequesta General Employees AA+ 4.99% 4.98% 3.06
LB G/C Intermediate AA+ 4.98% 5.10% 3.66
As of October 2005, the Portfolio's inception, the Yield to Maturity was 4.82%.
The Portfolio's yield has increased 0.17`% resulting in a potential annual yield increase on
a $335,200 portfolio of $ 570.
"The information set forth above is based upon information believed to be accurate and reliable but we do not guarantee its accuracy."
DANA INVEST;vtENT ADVISORS, INC.
S
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OUTLOOK
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Treasury Yield Curve
5.5
5.0
4.5
4.0
3.5
Shorter portfolios no longer sacrifice yield
03 Months 06 Months 02 Years 05 Years 10 Years 30 Years
sApr 23, 2007 4.97 5.04 4.65 4.58 4.68 4.86
-~-Dec 30, 2005 4.07 4.37 4.40 4.35 4.39 4.54
DANA INVESTMENT ADVISORS, INC.
6
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Current Economic Environment
- Earnings growth was in the mid teens in 2006.
- Economic activity is decelerating, not slumping. 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.
3-31-07
DANA INVESTMENT ADVISOFS, INC.
7
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Outlook for 2007
Bond Outlook
On a total return basis, Fixed Mortgage securities were the top performing asset class for the Lehman Brothers Aggregate Index for the first
quarter of 2007.
2007 Last 12
Months
Aggregate 1.50% 6.59%
Treasuries 1.45% 5.87%
Agencies 1.43% 6.07%
Corporate 1.51% 7.10%
Asset-Backed 1.41% 5.91%
Fixed MBS 1.57% 6.94%
Over the quarter, bond market returns were generated from the front-end of the yield curve as the curve steepened.
12 31 06 03 31 07
2 yr 4.81% 4.57%
5 yr 4.69% 4.53%
10 yr 4.70% 4.64%
30 yr 4.81% 4.84%
Returns were generated from the front-end of the yield curve as market expectations for future rate cuts in monetary policy increased. The
Federal Reserve met twice during the first quarter (January 31 and March 21) and ended both meetings by keeping the Fed Funds rate at
5.25%. Even though the Fed kept rates at 5.25%, the bond market continued its expectations that slower economic growth would lo~•er
future inflation which, in turn, would allow the Federal Reserve to ease the Fed Funds rate beginning in the early summer months of 2007.
However, by the end of the quarter, the bond market began to reverse the inference of an early 2007 rate cut as economic data continued to
confirm an economy experiencing positive growth.
3-31-07
DANA INVESTMENT ADVISORS, INC.
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B011C~ ~L1t~00k (Continued)
• At the beginning of the fourth quarter, the economic indicators were suggesting that the economy was slowing down and the
Federal Reserve would begin to ease monetary policy.
o GDP growth slowed from 5.6% in the first quarter of 2006, 2.6% in the second quarter, 2.0% in the third quarter of 2006, to
2.5% in the fourth quarter.
o Institutional Supply Management index has remained close to 50 over the first quarter.
o Retail sales and personal consumption continued to moderate over the first quarter.
o Housing starts were down 28.5% in February.
o Oil and gas levels remained elevated in the first quarter.
• However, offsetting the market's expectations for a Fed Funds rate cut has been economic data which suggest inflation risk and
tight labor markets remain a continued source of concern for the Federal Reserve.
o Payroll employment averaged a solid 151,000 new jobs per month in the first quarter.
o Average hourly earning rose 4.0%.
o Unemployment rate at 4.4%.
o Core inflation is above the 2% Federal Resen~e threshold.
o Corporate credit spreads are tight.
Given the uncertainty in the Bond market as to the future expectation of monetary policy and interest rates suggesting overbought yield
levels, the current portfolio is being managed to experience lower interest rate risk than our benchmarks. Our portfolios continue to be
well-diversified between Corporates, Treasuries, Agencies and Mortgages. We have maintained our over-weight sector allocation to
corporate and mortgage securities due to our fundamental economic and bond sector outlook. In addition, throughout the first quarter,
the bond portfolio has held a yield advantage to the benchmark and a slightly shorter duration. Therefore, we have been able to maintain
performance with lower risk and higher yield the benchmark.
3-31-07
DANA INVESTMENT ADVISORS, INC.
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Equity Outlook
Equity markets worldwide experienced positive returns in the first quarter of 2007. One significant theme
was the resurgent performance of U.S. small and midcap stocks vs. large and mega-cap stocks. Both the S&P
100 and Russell Top 200 indices experienced negative returns in the quarter.
The S&P 500 returned 0.64% in the quarter, while the Russell 2000 and Russell Midcap indices posted
returns of 1.95% and 4.38% respectively. Many foreign markets also experienced outsized gains compared to
the S&P 500. The widely followed EAFE International Index, for example, posted returns of over 4% in the
quarter.
Market volatility increased significantly, as a number of economic and political shocks emerged during the
latter half of the period. These shocks included fears of a subprime lending meltdown, sharply higher oil
prices, military tensions with Iran, trade tensions in China, continued weaker than expected economic data
(with the exception of the latest employment data), and domestic political squabbling over practically
everything.
Regardless, most U.S. and foreign equity indices displayed remarkable resiliency and finished the quarter on
a positive note. Only three of the ten major industries within the S&P 500 had negative returns, including
Consumer Discretionary (-1.0%), Technology (-1.1%), and Financials (-3.4%). In contrast, Utilities (+8.4%),
Materials (+8.4%) and Telecom stocks (+6.4%) were the strongest sectors within the S&P 500.
Unlike prior periods, there wasn't any clear leader between the growth and value equity styles among large
company stocks. Midcap value stocks, meanwhile, outpaced midcap growth stocks by almost 90 basis points,
while small-cap growth outpaced small cap value by an almost equal amount.
DANA INVESTMENT ADVISORS, INC.
11
Equity Outlook
Large Cap Strategies
Lipper Inc. reports that the average U.S. actively managed large-cap fund trailed the S&P 500 for the quarter.
This is somewhat surprising, as the recent bias against mega-cap stocks tends to benefit active managers. We are
pleased that Dana's equity strategies posted strong performance versus their respective benchmarks in the
quarter. The Large Cap Core strategy returned 3.03% in Q1, or roughly 239 basis points ahead of the S&P
500.
The Large Cap Growth strategy turned in the best performance in Q1. The growth portfolio returned 5.05%, or
roughly 390 basis points ahead of its respective benchmark, the Russell 1000 Growth index. The Large Value
and All-cap strategies also posted strong absolute and relative returns versus their benchmarks. The Large Cap
Value and Al1Cap portfolios had absolute returns of 3.07% and 2.65% respectively.
Stock selection drove most of the out-performance across most industry sectors within Dana's Large Cap
strategies in Q1. Top performers in the quarter came from a wide variety of industry sectors and included:
AT&T (+11.5%), Becton Dickinson (+10.0%), Burlington Northern (+9.3%), MetLife (+7.0%), McKesson
(+ 15.6%), Terex (+ 11.1 %) and XTO Energy (+ 16.8%). Many of these companies posted strong financial results
for the final quarter of 2006, yet lagged the market in the prior quarter. Thus, it was gratifying to see the market
begin to recognize and reward the strong earnings growth and balance sheet strength these companies have
achieved.
In our previous quarterly commentary, we noted that many of the valuation and growth metrics we monitor
suggest that some growth stocks now offer better risk/reward prospects than they have in some time. This still
holds true, and the line between growth and value continues to blur in many sectors. We view this trend
favorably, as it is increasing the number of high quality candidates that possess our desired mix of compelling
valuation and attractive earnings growth. History has shown that portfolios that offer superior growth prospects
with lower risk profiles tend to ottt-perform, so we are optimistic that all of our equity strategies are well
positioned to achieve positive relative returns in future periods.
DANA INVEST;~tENTADVISORS, INC.
12
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Equity Outlook
Small Cap
The Dana Small Cap portfolio returned 3.50% versus 3.39% for the S&P Small Cap 600 and 1.95% for the
Russell 2000. Stock selection within the Healthcare, Consumer Discretionary, Industrial and Telecom sectors
were especially accretive to performance. Our small cap strategy also continues to benefit from the current trend
of mergers & acquisitions by private equity investors. Top performers included: Apria Healthcare (+21.0%),
Consolidated Graphics (+25.4%), Genesis Healthcare (+33.6%), Men's Wearhouse (+23.1.%), SPSS (+20.0%),
TALX Corp (+20.9%) and Wellcare Health Group (+23.7%).
Socially Responsible
Our Social Strategy continued to significantly outperform the S&P 500 and its closest benchmark, the Domini
400 Index. The Social strategy returned 3.36% in the first quarter, versus .64% for the S&P 500 and -.18% for
the Domini 400 Index. Dana Social holdings outperformed their respective peers within nine of ten sectors.
DANA INVEST;~tENT ADVISOFS, INC.
13
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Equity Outlook
200? Outlook
The outlook for the equity markets largely hinges on expected corporate earnings growth and how the Fed
reacts to inflation trends. Recent data show that current core inflation levels are still higher than the Fed's
comfort level. When viewing inflation sensitive asset prices in combination with index measures, the case for
a cut diminishes. Inflation is likely to come down over time, but we believe the Fed isn't likely to cut interest
rates until lower data prints are in the rearview mirror. Market participants that expect an imminent Fed rate
cut maybe disappointed.
The ongoing slowdown in the economy also has important ramifications for corporate earnings growth.
Consensus estimates now forecast earnings growth of 3-4% for the S&P 500 in Q1, down from almost 9% at
the start of the year. The energy, automotive and housing sectors face extremely difficult comparisons in Q1.
The news is more positive excluding these sectors, as Zack's Research, expects the median firm in the S&P
500 to post 7.2% earnings growth in Q1 vs. Q1 2006. Regardless, these figures are still well below the 12.5%
median growth rate in Q4 2006.
The S&P 500 is currently trading around 15.5 times expected 2007 earnings, a level we consider reasonable
given the current economic environment. Overall earnings for the S&P 500 are forecasted at 7.7% for 2007
and 11.0% in 2008. These estimates imply a material acceleration in economic growth as the year progresses.
If earnings multiples remain stable (similar to 2006), the future performance of equities is likely to be driven
largely the growth rate of corporate earnings. Additional upside could be created for stocks by an unforeseen
event that spurs significant multiple expansion -such as higher earnings growth or a round of Fed rate cuts.
The probability of such an occurrence is difficult to handicap at this time.
DANA INVESTMENT ADVISORS, INC.
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ASSET ALLOCATION
Asset Allo~atiol~ as of 03-31-07
Government Bonds
Snn ~~o
Federal Agencies
$88,531
10%
Corpo
$1
10%
DANA INVEST;v1ENT ADVISORS, INC.
Money Market
Faced Rate Mtg Pools $32,056
T., ~..
Dana International
$63,258
7%
11 Cap
389
~ ~'/o
15
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Large Cep Sector Dist-i: ibution as of 03-31-07
DANA INVESTMENT ADVISORS, INC.
16
Financials Information Health Care Industrials Consumer Energy Consumer Teleconuu Utilities Materials
Technology Discretionary Staples Services
CURRENT HOLDINGS
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Dana Investment Advisors
PORTFOLIO APPRAISAL
1087
Tequesta Genera! Employees' Pension Fund
March 31, 2007
Quantity
CASH AND EQUIVALENTS
Cash -Money Fund
COMMON STOCK
Materials
Industrials
92 PPG Industries Inc.
190 PW Eagle Inc.
92 Quanex Corporation
90 Burlington Northern Santa Fe
94 Caterpillar Inc.
100 Eaton Corp.
206 Gardner Denver Inc
100 Parker Hannifin Corp.
128 United Technologies Corp
280 Wabtec Corporation
Market Pct.
Price Value Assets
32,056.34 3.5
32,056.34 3.5
70.31 6,468.52 0.7
33.04 6,277.60 0.7
42.35 3,896.20 0.4
16,642.32 1.8
80.43 7,238.70 0.8
67.03 6,300.82 0.7
83.56 8,356.00 0.9
34.85 7,179.10 0.8
86.31 8,631.00 0.9
65.00 8,320.00 0.9
34.49 9,657.20 1.1
55,682.82 6.1
Telecommunication Services
200 AT&T Inc.
180 Verizon Communications
Consumer Discreti~
180
188
80
230
160
160
117
unary
Gymboree Corp
Jarden Corporation
Johnson Controls Inc.
Leggett & Platt
Nordstrom Inc
The Men's Wearhouse Inc.
V F Corporation
39.43 7,886.00 0.9
37.92 6,825.60 0.8
14,711.60 1.6
40.07 7,212.60 0.8
38.30 7,200.40 0.8
94.62 7,569.60 0.8
22.67 5,214.10 0.6
52.94 8,470.40 0.9
47.05 7,528.00 0.8
82.62 9,666.54 1.1
52,861.64 5.8
17
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Dana Investment Advisors
PORTFOLIO APPRAISAL
1087
Tequesta General Employees' Pension Fund
March 31, 2007
Quantity
Security
Price Market
Value Pct.
Assets
Consumer Staples
90 Altria Group Inc. 65.90 5,931.12 0.7
145 General Mills Inc. 58.22 8,441.90 0.9
120 Kimberly-Clark Corp. 68.49 8,218.80 0.9
62 Kraft Foods Inc. Class A 31.66 1,962.92 0.2
260 Pepsi Bottling Group Inc. 31.89 8,291.40 0.9
210 Supervalu Inc. 39.07 8,204.70 0.9
41,050.84 4.5
Energy
340 Complete Production Services 19.91 6,769.40 0.7
120 Conocophillips 68.35 8,202.00 0.9
125 Ensco International Inc. 54.40 6,800.00 0.7
109 Marathon Oil Corp. 98.83 10,772.47 ].2
130 Valero Energy Corp. 64.49 8,383.70 0.9
130 XTO Energy Inc. 54.81 7,125.30 0.8
48,052.87 5.3
Financials
184 Bank of America Corporation 51.02 9,387.68 1.0
56 Bear Stearns Companies Inc. 150.35 8,419.60 0.9
180 CIT Group 52.92 9,525.60 1.0
180 Capital Bancorp Ltd 36.85 6,633.00 0.7
170 Citigroup Inc. 51.34 8,727.80 1.0
102 Hartford Financial Services 95.58 9,749.16 L1
192 J. P. Morgan Chase & Company 48.38 9,288.96 1.0
149 MetLife Inc 63.15 9,409.35 1.0
118 Morgan Stanley 78.76 9,293.68 1.0
352 Selective Insurance Group 25.46 8,961.92 1.0
150 Wachovia Corporation 55.05 8,257.50 0.9
97,654.25 10.7
Utilities
250 PPL Corporation 40.90 10,225.00 1.1
160 Sempra Energy 61.01 9,761.60 1.1
19,986.60 2.2
2 18
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Dana Investment Advisors
PORTFOLIO APPRAISAL
1087
Tequesta General Employees' Pension Fund
March 31, 2007
Quantity
Security
Price Market
Value Pct.
Assets
Information Techno logy
420 Applied Materials Inc. 18.32 7,694.40 0.8
280 Citrix Systems Inc 32.03 8,968.40 1.0
240 Diodes Inc. 34.85 8,364.00 0.9
149 Fiserv Inc. 53.06 7,905.94 0.9
332 Global Imaging Systems Inc. 19.50 6,474.00 0.7
185 Harris Group 50.95 9,425.75 1.0
90 International Business Machines Corp. 94.26 8,483.40 0.9
160 Komag Incorporated 32.73 5,236.80 0.6
270 Talx Corporation 33.13 8,945.10 1.0
71,497.79 7.9
Health Care
300 Apria Healthcare Group Inc. 32.25 9,675.00 1.1
70 Becton Dickinson & Co 76.89 5,382.30 0.6
109 Johnson & Johnson 60.26 6,568.34 0.7
140 McKesson Corp. 58.54 8,195.60 0.9
215 Pfizer Inc. 25.26 5,430.90 0.6
170 Sierra Health Services 41.17 6,998.90 0.8
130 Wellpoint Health Networks 81.10 10,543.00 1.2
149 Wyeth 50.03 7,454.47 0.8
60,248.51 6.6
International Stocks
1 l0 Central Europe & Russia Fund 50.35 5,538.50 0.6
89 Morgan Stanley India Investment Fund 43.20 3,844.80 0.4
152 New Ireland Fund Inc. 35.88 5,453.76 0.6
189 iShares MSCI Australia Index Fund 25.95 4,904.55 0.5
174 iShares MSCI Austria Index Fund 38.86 6,761.64 0.7
67 iShares MSCI Brazil Index Fund 49.22 3,297.74 0.4
82 iShares MSCI EAFE Index Fund 76.26 6,253.32 0.7
322 iShares MSCI Japan Index Fund 14.57 4,691.54 0.5
92 iShares MSCI Korea Index Fund 50.57 4,652.44 0.5
94 iShares MSCI Mexico Index Fund 54.36 5,109.84 0.6
114 iShares MSCI Netherlands Index Fund 28.39 3,236.46 0.4
148 iShares MSCI Sweden Index Fund 33.54 4,963.92 0.5
3 19
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Dana Investment Advisors
PORTFOLIO APPRAISAL
1087
Tequesta General Employees' Pension Fund
March 31, 2007
_ Quantity Security _
189 iShares MSCI United Kingdom Index Fund
Market
Price Value
24.07 4,549.23
Pct.
Assets
63,257.74
541,646.98
CORPORATE BONDS
0.5
7.0
59.5
5,000.00 Carolina Power & Light 100.47 5,023.75 0.6
6.800% Due 08-15-07
5,000.00 Cit Group Inc. 99.35 4,967.50 0.5
4.750% Due 08-15-08
5,000.00 CSX Corp 101.22 5,061.15 0.6
6.250% Due 10-15-08
6,000.00 Deutsche Bank Financial 104.71 6,282.65 0.7
7.500% Due 04-25-09
5,000.00 Target Corp. 100.84 5,042.00 0.6
5.375% Due 06-15-09
5,000.00 Countrywide Home Loan 100.44 5,022.00 0.6
5.620% Due 07-15-09
5,000.00 Intl Lease Finance Corp 99.77 4,988.55 0.5
5.000% Due 04-15-10
5,000.00 Capital One Bank 101.38 5,068.85 0.6
5.750% Due 09- I S- ] 0
5,000.00 Lehman Brothers Inc. 99.16 4,957.90 0.5
5.000% Due 01-14-11
5,000.00 Kohls Corporation 104.06 5,203.00 0.6
6.300% Due 03-01-11
5,000.00 Washington Mutual Inc. 100.73 5,036.69 0.6
5.500% Due 08-24-11
5,000.00 Bank One Corp 102.76 5,138.25 0.6
5.900% Due 11-15-11
5,000.00 Gannett Co Inc. 104.48 5,224.10 0.6
6.370% Due 04-01-12
5,000.00 SLM Corp 99.14 4,956.90 0.5
5.120% Due 08-27-12
5,000.00 Avon Products Inc. 96.07 4,803.35 0.5
4.620% Due OS-15-13
5,000.00 Goldman Sachs Group Inc. 99.02 4,951.20 0.5
5.250% Due 10-15-13
a 20
Dana Investment Advisors
PORTFOLIO APPRAISAL
1087
Tequesta General Employees' Pension Fund
Munch 31, 2007
Quantity
Security
Price Market
Value Pct.
Assets
5,000.00 HSBC Finance Corp. 98.60 4,929.85 0.5
5.250% Due 04-15-15
5,000.00 Lowe's Companies Inc. 96.93 4,846.50 0.5
5.000% Due 10-15-15
5,000.00 Home Depot Inc. 97.65 4,882.45 0.5
5.400% Due 03-0 l -16
5,000.00 Wachovia Bank NA 101.09 5,054.40 0.6
5.600% Due 03-15-16
101,441.04 11.2
FEDERAL AGENCY SECURITIES
10,000.00 Federal Home Loan Bank Bond 99.37 9,937.50 1.1
4.125% Due 10-19-07
10,000.00 Federal Home Loan Mortgage Corp. 100.64 10,064.10 1.1
5.750% Due 04-15-08
10,000.00 *Federal National Mortgage Association 100.64 10,064.10 1.1
5.250% Due 01-15-09
10,000.00 Federal Home Loan Mortgage Corp. 101.64 10,164.10 1.1
5.750% Due 03-15-09
10,000.00 Federal National Mortgage Association 101.23 10,123.40 1.1
5.375% Due 08-IS-09
5,000.00 Federal National Mortgage Association 99.78 4,989.05 0.5
4.750%Due 12-15-]0
7,000.00 Federal National Mortgage Association 102.44 7,170.66 0.8
5.500% Due 03-15-1 1
10,000.00 Federal National Mortgage Association 100.61 10,060.90 1.1
5.000% Due 10-15-11
3,000.00 Federal Home Loan Mortgage Corp. 98.14 2,944.23 0.3
4.500% Due 01-15-13
5,000.00 Federal Home Loan Mortgage Corp. 99.75 4,987.50 0.5
4.875% Due 11-15-13
8,000.00 Federal National Mortgage Association 100.31 8,025.04 0.9
5.000% Due 04- 15-15
88,530.58 9.7
5 21
Dana Investment Advisors
PORTFOLIO APPRAISAL
1087
Tequesta General Employees' Pension Fund
March 31. 2007
Market Pct.
Quantity Security Price Value Assets
GOVERNMENT BO NDS
15,000.00 U.S. Treasury Bill 99.90 14,985.00 1.6
0.000% Due 04-12-07
10,000.00 U.S. Treasury Notes 99.50 9,950.00 1.1
4.000% Due 09-30-07
20,000.00 U.S. Treasury Notes 99.17 19,834.37 2.2
4.120% Due 08-15-08
10,000.00 U.S. Treasury Notes 101.84 10,184.37 1.1
5.500% Due 05-15-09
15,000.00 U.S. Treasury Notes 99.12 14,868.75 1.6
4.250% Due 10-15-10
10,000.00 U.S. Treasury Notes 100.34 10,034.37 1.1
4.625% Due 10-31-11
10,000.00 U.S. Treasury Notes 98.33 9,832.81 1.1
4.250% Due 08-15-13
5,000.00 U.S. Treasury Notes 97.34 4,867.19 0.5
4.250% Due 08-IS-15
5,000.00 U.S. Treasury Notes 103.42 5,171.09 0.6
5.120% Due OS-15-16
99,727.97 1 l .0
FIXED RATE MORTGAGE POOLS
13,343.34 FHLMC C90939 12-1-OS 99.62 13,292.64 1.5
5.500% Due 12-01-25
14,007.49 FHLMC GOLD C90978 7-1-06 101.12 14,164.37 1.6
6.000% Due 07-01-26
13,973.35 FNMA 884093 5-1-06 100.81 14,086.53 1.5
6.000% Due OS-01-36
41,543.54 4.6
Accrued Income 3,957.67 0.4
Dividends Receivable 416.94 0.0
Interest Receivable 304.56 0.0
TOTAL ACCRUED AND RECEIVABLE 4,679.18 0.5
6 22
Dana Investment Advisors
PORTFOLIO APPRAISAL
1087
Tequesta General Employees' Pension Fund
March 31, 2007
Market Pct.
Quantity Security Price Value Assets
TOTAL PORTFOLIO 909,625.63 100.0
The marketprices shown on thesepages represent the Inst reporteds~/e on the valrrntion dote ns to listedsecurities or tke
bid price in tl:e case ofover-the-counter quotations. Prices on bonds and some other investments ore bused on round lot
price quotations and ore for eva/nation purposes only and may not represent actual market values. Bonds so/don an odd /ot
basis (less Bran $1 million) may have a clollnr price lower then the round lot quote. Where no regular market exists,
prices shown are estimates by sources considered reliable by Dana Investment Advisors, /nc. While the prices ore obtained
jrom sources we consider reliable, we cannot guarantee tleem.
7 23
^^^^^^^^^^^^^^^^^^^^^^^~^^^^^^s^
COMPL,IAi~'CE
^ ^ r ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ s ^ ^ ^ ^ ^ ^
24
^ ^ ^ ^ ^ ^ ^ i ~ ^ ^ ^ ! ^ ^ ^ ^ ^ ^ ^ ~ ~ ^ ^ ^ ^ ^ ^ ^ ~ ^ ^
TABLE OF CONTENTS
^ ^ ^ s ^ ^ ^ ~ ^ s ^ ^ ^ ^ ^ ^ t s ^ ~ ~ ~ ^ ~^ ^ ^ s ^ ^ ~ ^
Table of Contents
I. Value Line Ratings, Corporate Governance
Rankings, Corporate Bond Ratings
II. Corporate Governance Supporting Data
III. Proxy Vote Summary Report
IV. Proxy Voting Guidelines
DANA INVESTMENT ADVISORS, INC.
25
I
I. Value Line Ratings anc~ Corporate Governance Rankings
~~ Value Line Safety Rating
• Stocks are broken into 5 groups
• The Value Line universe is comprised of approximately 1,700 stocks
• Value Line Safety Ranking equally weights a Companies Financial Strength & Stocks Price
Stability
• Group 1 contains those that are expected to have the best Company Financial Strength &
Stock Price Stability in the next 6-12 months
• Group 5 contains those expected to have the worst Company Financial Strength & Stock
Price Stability in the next 6-12 months
• Stocks with a Value Line Safety ranking of 6 have not yet been rated
Corporate Governance
• Institutional Shareholder Services (ISS) has been retained to vote proxy statements
• ISS also provides a Corporate Governance Quotient (CGQ) rating
• 100 is the highest, 1 is the lowest
• Stocks are rated on a relative basis
• Rating is based on Shareholder Advocacy issues and not on financial strength or
investment potential
• Stocks with an "n/a" rating have not yet been analyzed for corporate governance by ISS
DANA INVESTMENT ADVISORS, INC.
26
Dana Investment Advisors
VALUE LINE SAFETY RATINGS
ISS CORPORATE GOVERNANCE RATINGS
1087
Tequesta General Employees' Pension Fund
Jody Forsythe
Ma~•ch 31, 2007
Security Value Line ISS Corp Gov Market Percent of
Symbol Security Safety Rating Index Rating Value Equities
COMMON STOCK
Dana Large Cap
t AT&T Inc. 2 88 7,886.00 1.46
mo Altria Group lnc. 3 55 5,931.12 1.10
amat Applied Materials Inc. 3 58 7,694.40 1.42
bac Bank of America 2 65 9,387.68 1.73
Corporation
bsc Bear Stearns Companies 3 34 8,419.60 1.55
Inc.
bdx Becton Dickinson & Co 1 96 5,382.30 0.99
bni Burlington Northern 3 90 7,238.70 L34
Santa Fe
cit CIT Group 3 80 9,525.60 1.76
cat Caterpillar Inc. 2 86 6,300.82 1.16
c Citigroup Inc. 3 94 8,727.80 1.61
ctxs Citrix Systems Inc 3 n/a 8,968.40 1.66
cop Conocophillips 2 33 8,202.00 1.51
etn Eaton Corp. 1 63 8,356.00 1.54
esv Ensco International Inc. 3 59 6,800.00 1.26
fisv Fiserv Inc. 3 39 7,905.94 1.46
gis General Mills Inc. 1 82 8,441.90 1.56
hrs Harris Group 3 84 9,425.75 1.74
hig Hartford Financial 3 61 9,749.16 1.80
Services
ibm International Business 1 9 8,483.40 1.57
Machines Corp.
jpm J. P. Morgan Chase & 3 90 9,288.96 1.71
Company
jnj Johnson & Johnson 1 16 6,568.34 1.21
jci Johnson Controls Inc. 2 80 7,569.60 1.40
kmb Kimberly-Clark Corp. 1 77 8,218.80 1.52
kft Kraft Foods Inc. Class A 1 52 1,962.92 0.36
leg Leggett & Platt n/a 42 5,214.10 0.96
mro Marathon Oil Corp. 2 56 10,772.47 1.99
mck McKesson Corp. 3 60 8,195.60 1.51
met MetLife Inc 2 47 9,409.35 1.74
27
^ ^ ~ ^ ~ ^ ^ r ^ ~ ~ ^ ~ ^ ^ ~ ^ ^ ^ ^ ^ ^ ^ ^ ^ ~ ~ ^ ^ ^ ^
Dana Investment Advisors
VALUE LINE SAFETY RATINGS
ISS CORPORATE GOVERNANCE RATINGS
1087
Tequesta General Employees' Pension Fund
Jody Forsythe
March 31, ?007
Security Value Line ISS Corp Gov Market Percent of
Symbol Security Safety Rating Index Rating Value Equities
ms Morgan Stanley n/a 71 9,293.68 1.72
jwn Nordstrom Inc 3 85 8,470.40 1.56
ppg PPG Industries Inc. 2 18 6,468.52 1.19
ppl PPL Corporation 3 54 10,225.00 1.89
ph Parker Hannifin Corp. 3 64 8,631.00 1.59
pbg Pepsi Bottling Group 3 41 8,291.40 1.53
Inc.
pfe Pfizer Inc. 1 81 5,430.90 1.00
sre Sempra Energy 2 44 9,761.60 1.80
svu Supervalu Inc. 3 56 8,204.70 1.51
utx United Technologies 1 93 8
320.00 ,
1.54
Corp
vfc V F Corporation 3 78 9,666.54 1.78
vlo Valero Energy Corp. 3 58 8,383.70 1.55
vz Verizon 2 65 6,825.60 1.26
Communications
wb Wachovia Corporation 3 45 8,257.50 1.52
wlp Wellpoint Health 2 72 10,543.00 1.95
Networks
wye Wyeth 2 94 7,454.47 1.38
xto XTO Energy lnc. n/a l9 7,125.30 1.32
361,380.02
Dana Small Cap
ahg Apria Healthcare Group 3 96 9,675.00 1.79
Inc.
cbc Capital Bancorp Ltd n/a 30 6,633.00 1.22
cpx Complete Production n/a n/a 6,769.40 1.25
Services
diod Diodes Inc. 4 9 8,364.00 1.54
gdi Gardner Denver Inc n/a 87 7,179.10 1.33
gisx GlobalImaging 3 42 6,474.00 1.20
Systems Inc.
gymb Gymboree Corp n/a n/a 7,212.60 1.33
jah Jarden Corporation 3 51 7,200.40 1.33
komg Komag Incorporated n/a 72 5,236.80 0.97
2
28
^ ^ ^ ^ ^ ^ ^ ^ ^ rr ^ ^ ^ ^ ^ ^ ^ ^ r ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^
Dana Investment Advisors
VALUE LINE SAFETY RATINGS
ISS CORPORATE GOVERNANCE RATINGS
1087
Tequesta General Employees' Pension Fund
Jody Forsythe
March 31, 2007
Security Value Line ISS Corp Gov Market Percent of
Symbol Security Safety Rating Index Rating Value Equities
pwei PW Eagle Inc. n/a 93 6,277.60 1.16
nx Quanex Corporation 3 92 3,896.20 0.72
sigi Selective Insurance 3 65 8,961.92 1.65
Group
sie Sierra Health Services 3 83 6,998.90 1.29
talx Talx Corporation n/a 94 8,945.10 1.65
mw The Men s Wearhouse 3 70 7,528.00 1.39
Inc.
wab Wabtec Corporation n/a 66 9,657.20 1.78
117,009.22
Mutual & Exchange Traded Funds
cee Central Europe & n/a n/a 5,538.50 1.02
Russia Fund
iif Morgan Stanley India n/a n/a 3,844.80 0.71
Investment Fund
irl New Ireland Fund Inc. n/a n/a 5,453.76 1.01
ewa iShares MSCI Australia n/a n/a 4,904.55 0.91
Index Fund
ewo iShares MSCI Austria n/a n/a 6,761.64 1.25
Index Fund
ewz iShares MSCI Brazil n/a n/a 3,297.74 0.61
Index Fund
efa iShares MSCI EAFE n/a n/a 6,253.32 1.15
Index Fund
ewj iShares MSCI Japan n/a n/a 4,691.54 0.87
Index Fund
ewy iShares MSCI Korea n/a n/a 4,652.44 0.86
Index Fund
eww iShares MSCI Mexico n/a n/a 5,109.84 0.94
Index Fund
ewn iShares MSCI n/a n/a 3,236.46 0.60
Netherlands Index Fund
ewd iShares MSCI Sweden n/a n/a 4,963.92 0.92
Index Fund
3 29
'^^r^^^^^^^^^^^^~r^^^^^^^^^^^^^r^
Dana Investment Advisors
VALUE LINE SAFETY RATINGS
ISS CORPORATE GOVERNANCE RATINGS
1087
Tequesta General Employees' Pension Fund
Jody Forsythe
Ma~~ch 31, 2007
Security
Symbol
ewu
Value Line ISS Corp Gov
Security Safety Rating Index Rating
iShares MSCI United n/a n/a
Kingdom Index Fund
TOTAL EQUITIES
Market Percent of
Value Equities
4,549.23
63,257.74
54I ,646.98
541,646.98
0.84
a 30
^^^^^^r^^^^^^^^^^^^^^~^^^^^^^^r^
Dana Investment Advisors
CORPORATE BOND RATINGS
1087
Tequesta General Employees' Pension Fund
Jody Forsythe
March 31, 2007
Market
Security Quantity Value S & P Moody
CORPORATE BONDS
Carolina Power & Light 5,000.00 5,023.75 BBB+ A3
6.800% Due 08-15-07
Cit Group Inc. 5,000.00 4,967.50 A A2
4.750% Due 08-15-08
CSX Corp 5,000.00 5,061.15 BBB Baal
6.250% Due 10-15-08
Deutsche Bank Financial 6,000.00 6,282.65 A+ Al
7.500% Due 04-25-09
Target Corp. 5,000.00 5,042.00 A+ A 1
5.375% Due 06-15-09
Countrywide Home 5,000.00 5,022.00 A A3
Loan
5.620% Due 07-15-09
Intl Lease Finance Corp 5,000.00 4,988.55 AA- Al
5.000% Due 04-15-10
Capital One Bank 5,000.00 5,068.85 A- A2
5.750% Due 09-15-10
Lehman Brothers Inc. 5,000.00 4,957.90 A+ Al
5.000% Due 01-14-11
Kohls Corporation 5,000.00 5,203.00 BBB+ A3
6.300% Due 03-01-11
Washington Mutual Inc. 5,000.00 5,036.69 A- A2
5.500% Due 08-24-11
Bank One Corp 5,000.00 5,138.25 A+ Aa3
5.900% Due 11-15-11
Gannett Co lnc. 5,000.00 5,224.10 A- A3
6.370% Due 04-01-12
SLM Corp 5,000.00 4,956.90 A A2
5.120% Due 08-27-12
Avon Products Inc. 5,000.00 4,803.35 A A2
4.620% Due OS-15-13
Goldman Sachs Group 5,000.00 4,951.20 AA- Aa3
Inc.
5.250%Due 10-15-13
HSBC Finance Corp. 5,000.00 4,929.85 AA- Aa3
5.250% Due 04-15-15
31
rr^^^^r^^^^^^^^^^^^a^^^^r^^^+^^^^
Dana Investment Advisors
CORPORATE BOND RATINGS
1087
Tequesta General Employees' Pension Fund
Jody Forsythe
March 31, 2007
Security
Quantity Market
Value
S & P
Moody
Lowe's Companies Inc. 5,000.00 4,846.50 A+ Al
5.000% Due 10-15-15
Home Depot Inc. 5,000.00 4,882.45 A+ Aa3
5.400% Due 03-01-16
Wachovia Bank NA 5,000.00 5,054.40 AA- Aa3
5.600% Due 03-15-16
101,441.04
TOTAL CORPORATE BONDS
101,441.04
2 32
^^^^^^^^^^^^^^^^^^^^^^r^^^^^^^^^
II
^ ^ ~ ^ ^ ^ ^ ^ ^ ^ ^ ~ ! ^ r ^ ^ ^ ^ ^ ~ ^ ^ ^ ^ ^ ^ ^ / N ^ ^
II. Corporate Governance Supporting Data
Corporate Governance Supporting Data
• All stocks that received an ISS Corporate Governance Quotient (CGQ) rating below 50, as
indicated in Section I, are included in this report.
• The supporting information identifies 4 policies that have a favorable impact on corporate
governance and 4 policies that negatively effect corporate governance.
• ISS, CGQ ratings are a proprietary ranking methodology and may or may not be either
accurate or predictive.
• Relative ratings continually change, and such changes maybe the result of another
company's rating change.
• CGQ ratings are neither intended as a means to assess financial viability of a company, nor
a determining factor for future returns.
DANA INVEST;VtENT ADVISORS, INC.
33
^
^
^
^
^ The audit committee is comprised solely of independent outside directors x
All of the audit committee members are "financial experts' x
Directors are subject to stock ownership guidelines x
Executives are subject to stock ownership guidelines x
There is no disclosure of a policy that directors are required to submit a letter of resignation upon a job ch x
The average annual burn rate over the past three fiscal years is greater than 2% and exceeds on standard de x
The coulpany does not utilize perfomance-based equity awards with specific performance criteria and hurdl x
There is no disclosure of mandatory holding periods for restricted stock after vesting x
There is not a dual class capital structure in place
. Aboard approved CEO succession plan is in place
The company has a committee that overseas governance issues and the committee stet in the past year
The audit committee is comprised solely of independent outside directors
I . The board is controlled by a supermajoriry of independent insiders (insiders and affiliated outsiders greater
There is no disclosure of stock ownership guidelines for executives
^ There is no disclosure of stock ownership guidelines for outside directors
The average annual burn rate over the past three fiscal years is greater than 2% and exceeds on standard de
x
x
x
x
^ The audit committee is comprised solely of independent outside directors x
The average annual burn rate over the past three fiscal years is 2% or less, or is within one standard deviati x
The board is controlled by a supermajoriry of independent outsiders (independent outsiders greater than 9 x
i Directors are subject to stock ownership guidelines x
The company has a poison pill in place x
There is no disclosure of mandatory bolding periods for restricted stock after vesting x
The board of directors is classified x
. The coulpany does not utilize perfomance-based equity awards with specific performance criteria and hurdl x
There is not a dual class capital structure in place x
The company has a committee that overseas governance issues and the conunittee met in the past year x
The company does not have a poison pill x
The average annual burn rate over the past three fiscal years is 2% or less, or is within one standard deviati x
There is no disclosure of stock ownership guidelines for outside directors x
The audit couuuittee includes affiliated outsiders x
The board is controlled by a majority of insiders and affiliated outsiders (insiders and affiliated outsiders gr x
There is no disclosure of stock ownership guidelines for executives x
^
^
Reference: htCp:~/wwtiv.proxymus[er.com
x
x
x
x
M
^
1087 Tequesta General Employees' Pension Fund
-1
Tequesta General Employees' Pension Fund
^ The audit conunittee is comprised solely of independent outside directors x
Directors are subject to stock ownership guidelines x
All of the audit committee meuzbers are °financial experts' x
The average annual burn rate over the past three fiscal years is 2% or less, or is within one standard deviati x
r There is no disclosure of stock ownership guidelines for executives x
. There is no disclosure of mandatory holding periods for restricted stock after vesting x
The company has a poison pill in place x
The board of directors is classified x
The audit committee is comprised solely of independent outside directors x
^ The company has a conunittee that overseas governance issues and the committee met in the past year x
The average annual burn rate over the past three fiscal years is 2% or less, or is within one standard deviati x
r There is not a dual class capital structure in place x
There is no disclosure of a policy that directors are required to submit a letter of resignation upon a job ch x
There is no disclosure of stock ownership guidelines for outside directors x
^ The board of directors is classified x
There is no disclosure of stock ownership guidelines for executives x
Directors are subject to stock ownership guidelines x
Executives are subject to stock ownership guidelines
x
. The company has a conunittee that overseas governance issues and the conunittee met in the past year x
The average annual burn rate over the past three fiscal years is 2% or less, or is within one standard deviati x
. there is no disclosure of mandatory holding periods for stock acquired upon exercise of options x
There is no disclosure of mandatory holding periods for restricted stock after vesting x
The audit conunittee includes affiliated outsiders x
There is no disclosure of a policy that the board regularly approves a CEO succession plan x
~_
There is nor a dual class capital structure in place x
The average annual burn rate over the past three fiscal years is 2% or less, or is within one standard deviati x
The audit conunittee is comprised solely of independent outside directors x
The company has a conunittee that overseas governance issues and the committee met in the past year x
The company does not utiliae performance-based equity awards with specific performance criteria and Kurd x
^ There is no disclosure of mandatory holding periods for restricted stock after vesting x
There is no disclosure of stock ownership guidelines for executives x
There is no disclosure of stock ownership guidelines for outside directors x
--~
LJ
Re lerence: 6ttp://waRV. proxymaster.wm
,r,
. The compensation couunittee is comprised solely of independent outside directors x
The fall board of directors is elected annually x
The nominating couunittee is coutprised solely of independent outside directors x
^ The audit couunittee is comprised solely of independent outside directors x
The company has a poison pill in place that was not approved by shareholders
^ No directors have participated in an "ISS accredited" director education program
There is no disclosure of stock ownership guidelines for outside directors
The CEO is a parry to one or more "related parry" transactions
The audit couunittee is comprised solely of independent outside directors
^ The average annual burn rate over the past three fiscal years is 2% or less, or is within one standard deviati
Executives are subject to stock ownership guidelines
The board is controlled by a supennajority of independent outsiders (independent outsiders greater than 9
There is no disclosure of stock ownership guidelines for outside directors
The board of directors is classified
^ The company does not utilize performance-based equity awards with specific performance criteria and burd
The company bas a poison pill in place
x
x
x
x
x
x
x
x
Executives are subject to stock ownership guidelines x
The average annual burn rate over the past three fiscal years is 2% or less, or is within one standard deviati x
^ Directors are subject to stock ownership guidelines x
The audit couunittee is comprised solely of independent outside directors x
there is no disclosure of mandatory holding periods for stock acquired upon exercise of options x
r There is no disclosure of mandatory holding periods for restricted stock after vesting x
The last time ISS evaluated the company's option plans, ISS deemed the shareholder value transfer of the p x
The company does not utilize performance-based equity awards with specific performance criteria and burd x
Directors are subject to stock ownership guidelines x
^ The board is controlled by a supermajority of independent outsiders (independent outsiders greater than 9 x
The audit couunittee is coutprised solely of independent outside directors x
The average annual burn rate over the past three fiscal years is 2% or less, or is within one standard deviati x
The board of directors is classified x
The company has a poison pill in place x
There is no disclosure of mandatory holding periods for restricted stock after vesting x
There is no disclosure of stock ownership guidelines for executives x
i
Reference: 6ttp:~~www.proxpuias[eccom
x
x
x
x
M
^
1087 Tequesta General Eutployees' Pension Fund
Directors are subject to stock ownership guidelines x
The audit committee is comprised solely of independent outside directors x
The company is incorporated in a state without anti-takeover provisions x
^ Executives are subject to stock ownership guidelines x
The company does not utiliae performance-based equity awards with specific performance criteria and Kurd x
^ There is no disclosure of mandatory holding periods for restricted stock after vesting x
The average annual burn rate over the past three fiscal years is greater than 2% and exceeds on standard de x
The board of directors is classified x
~ The company has a committee that overseas governance issues and the conunittee met in the past year
^ Directors are subject to stock ownership guidelines
Executives are subject to stock ownership guidelines
The audit committee is comprised solely of independent outside directors
The company has a poison pill in place
The board has more than 15 directors
^ The average annual burn rate over the past three fiscal years is greater than 2% and exceeds on standard de
The board of directors is classified
x
x
x
x
x
x
x
. The audit conunittee is comprised solely of independent outside directors x
Directors are subject to stock ownership guidelines x
. Executives are subject to stock ownership guidelines x
The company has a conunittee that overseas governance issues and the conunittee met in the past year x
The average annual burn rate over the past three fiscal years is greater than 2% and exceeds on standard de x
The company has a poison pill in place x
The hoard of directors is classified x
There is no disclosure of mandatory holding periods for restricted stock after vesting x
~~
Rete re nee: 6 ttp://www. pro~cyma ster. com
N
I
1087 Tequesta General Employees' Pension Fund
ISS: CGQ Research Methodology
Companies Rated
^ U.S. Companies
ISS analyzes 61 data points to derive each U.S. issuer's rating.The database includes all companies in the S&P 400, S&P 500, SStP 600
and the Russell 3000 indexes, along with many other companies not in these indexes.
^ Non-U.S. Companies
ISS reviews 55 data points to determine the CGQ score of nearly 2,000 companies in the MSCI EAFEO Index, MSCI World Index and
the Canadian S&P/TSX Composite Index. Companies outside the U.S. are also rated against other companies in the same index, industry•
and country.*
Ratings Criteria
CGQ uses a comprehensive set of objectives and consistently applied criteria for each of the companies rated. The database features corporate
governance rankings on more than 7,500 companies worldwide, and includes underlying data points for up to 61 corporate. governance
variables, categorized under eight areas of focus. Some of the variables are reviewed together under the premise that corporate governance is
enhanced -hen selected combinations of these variables are adopted. To facilitate analytical comparison, each company is scored individually,
relative to its market index and its industry group.
'Only companies domiciled within countries with more than 75 rated companies are subject to the country rating. Qirrently,
this applies to the following markecc: Australia, Canada, France, Germany, Japan and the United Kingdom.
DANA INVESTMENT ADVISORS, INC.
38
^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ i ^ ^ ^ ^ ^ ^ ^ ^ ^ ~ ^
ISS: CGQ Research Methodology
Categories for evaluating companies
1. Board of directors 4. Anti-takeover provisions 7. Ownership
2. Audit 5. Executive and director compensation 8. Director education
3. Charter and bylaw provisions 6. Progressive practices
To review the specific data points in each category that are factored into a company's CGQ rating, please visit w~~~v.issproxy.com. CGQ also
includes sub-scores that provide a measure of a company's governance in four key areas: board of directors, takeover defenses, executive and
director compensation and ownership and audit review. Companies are ranked in quintiles relative to their index and industry- group. Sub-
scores are given from 1-5. A score of 5 indicates a company is in the top quintile in a governance area. A score of 1 indicates a company is in
the bottom quintile in a governance area.
Data Sources
The data provided in CGQ is derived primarily from public disclosure documents, press releases and corporate ~~-ebsites. It then goes through
a rigorous verification process liy ISS' senior corporate governance analysts and is put in to the CGQ database. ISS' CGQ database is updated
daily to reflect all governance data changes that occur. Each company profile is updated every 120 days, unless the company voluntarily
submits updates, at ~~~hich time an updated score is generated. In addition, the scores are updated in advance of a company's annual
shareholder meeting, so that the latest score i included on the ISS proxy analysis. As a result, investors can be sure that every CGQ rating is
based on the latest and most accurate information available.
Objective, Impartial Information
CGQ is a quantitative database that provides objective and impartial information, and is not tied to any other ISS service. Companies are
rated whether they want to be or not, and they cannot change their ratings by subscribing to the CGQ service, or any other service provided
by ISS. The only way a company can improve its rating is to make and publicly disclose changes in its governance structure and/or practices.
ISS does encourage corporate issuers to submit any material changes related to their corporate governance structure, policies and procedures
via a specially designed web portal, available to them free of charge. Corporate issuers are invited to access w~~w.isscgq.com to better
understand how ISS calculates its CGQ scores anal review the exact data ISS used to generate their CGQ score.
DANA INVEST;~tENT ADVISORS, INC.
39
III
III. Proxy Vote Siunmary
• Identifies each company that had a shareholder proxy vote during the most recent
calendar quarter.
• Summarizes each proxy item by company.
• States Management's position on each vote.
• Identifies whether vote was cast for or against.
• Number of shares voted.
DANA INVESTMENT ADVISORS, INC.
40
^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ! ^ ^ ^ i ^ ^ ^ ^ ^
Vote Summary Report (Short)
01-01.07 to 03.31-07
Elect Director Robert A. Minicucci 1/18/2007 11/20/2006 For
Elect Director Bruce K. Anderson 1/18/2007 11/20/2006 For
Elect Director Simon Olswang 1/18/2007 11/20/2006 For
Elect Director Mario Segal 1/18/2007 11/20/2006 Withhold
Elect Director Adrian Gardner 1/18/2007 11/20/2006 For
Elect Director Charles E. Foster 1/18/2007 11/20/2006 For
Elect Director James S. Kahan 1/18/2007 11/20/2006 For
Elect Director Dov Baharav 1/18/2007 11/20/2006 For
Elect Director Julian A. Brodsky 1/18/2007 11/20/2006 For
Elect Director Eli Gelman 1/18/2007 11/20/2006 For
Elect Director Nehemia Lemelbaum 1/18/2007 11/20/2006 For
Elect Director John T. Mclennan 1/18/2007 11/20/2006 For
Elect Director Joseph Vardi 1/18/2007 11/20/2006 For
APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS FOR FISCAL YEAR 2006. 1/ 18/2007 11/20/2006 For
RATIFICATION AND APPROVAL OF ERNST & YOUNG LLP AND AUTHORIZATION OF AUDIT COMMITTEE OF BOARD TO 1/18/2007 11/ZO/2006 For
FIX REMUNERATION.
Elect Director Michael R. Splinter 3/14/2007 1/19/2007 For
Elect Director Michael H. Armacost 3/14/2007 1/19/2007 For
Elect Director Robert H. Brunt 3/14/2007 1/19/2007 For
Elect Director Deborah A. Coleman 3/14/2007 1/19/2007 For
Elect Director Philip V. Gerdine 3/14/2007 1/19/2007 For
Elect Director Thomas J. Iannotti 3/14/2007 1/19/2007 For
Elect Director Charles Y.S. Liu 3/14/2007 1/19/2007 For
Elect Director James C. Morgan 3/14/2007 1/19/2007 For
Elect Director Gerhard H. Parker 3/14/2007 1/19/2007 For
Elect Director Willem P. Roelandts 3/14/2007 1/19/2007 For
Amend Omnibus Stock Plan 3/14/2007 1/19/2007 For
Amend Qualified Employee Stock Purchase Plan 3/14/2007 1/19/2007 For
Amend Executive Incentive Bonus Plan 3/14/2007 1/19/2007 For
Ratify Auditors 3/14/2007 1/19/2007 For
41
Reference: http://www.Votex.iont/
^ ^ ^ ^ ^ i ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ! ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^
Vote Summary Report (Short)
01-01.07 to 03-31-07
Elect Director Claire Fraser-Liggett
Elect Director Henry P. Becton, Jr.
Elect Director Edward F. Degraan
Elect Director Adel A.F. Mahmoud
Elect Director James F. Orr
Ratify Auditors
Amend Omnibus Stock Plan
Restore or Provide for Cumulative Voting
Elect Director Robert L. Barnett
Elect Director Eugenio C. Reyes-Retana
Elect Director Jeffrey A. Joerres
Elect Director Richard F. Teerlink
Ratify Auditors
Approve Stock Option Plan
Meeting /Record Date Vote Cast
1/30/2007 12/6/2006 For
1/30/2007 12/6/2006 For
1/30/2007 12/6/2006 For
1/30/2007 12/6/2006 For
1/30/2007 12/6/2006 For
1/30/Z007 12/6/2006 For
1/30/2007 12/6/2006 For
1/30/2007 12/6/2006 For
'• ~. -
1/24/2007 11/16/2006 For
1/24/2007 11/16/2006 For
1/24/2007 11/16/2006 For
1/24/2007 11/16/2006 For
1/24/Z007 11/16/2006 For
1/24/2007 11/16/2006 For
Reference: http://www.Vutexcom/ 42