15800 Bluemound Rd., Suite 250 Brookfield, WI 53005 1-800-765-0157
DANA MUNICIPAL BOND
STRATEGY
HIGHLIGHTS
Provides a high level
of current income which is exempt from federal taxation.
Well diversified, high
quality ("A" rated or better) portfolios.
Unique Process utilizing
Super Sinker Bonds.
Strong risk controls
improve safety and risk-adjusted income.
INVESTMENT
PHILOSOPHY
The Dana Municipal
Bond Strategy seeks to provide a high level
of current, tax-advantaged income with limited
risk and price volatility. The strategy
starts by addressing overall market conditions
and a client's tax status. Then, utilizing
a highly selective screening process, Dana
uncovers overlooked value in the municipal
market. Diversifying in terms of quality,
coupon rate, and geographic location further
expands the opportunity for adding value
while at the same time reducing risk.
INVESTMENT
PROCESS
The
Dana Municipal Bond strategy invests
primarily in fixed and variable rate
General Obligation bonds, Revenue
bonds and housing related issues.
Dana further concentrates on seeking
high quality (A or better rating)
Super Sinker municipal bonds which
demonstrate superior value relative
to other municipal issues. Super Sinkers,
also known as Single Family Revenue
Bonds, are issued by state and local
governments and act similarly to GNMA
and FNMA pass-through certificates.
Municipal Bonds are analyzed by evaluating
the following factors:
A or better Credit Rating High
Current Coupons
Super Sinker Provisions Size of
Issue & Geographic Origin
Relative Value to Marketplace
Guaranties of backing entities
Leading to tax advantaged portfolios
exhibiting high cash flows, limited
interest rate risk and yields comparative
to portfolios with longer average
maturities.
PORTFOLIO CONSTRUCTION
This strategy primarily
invests in both fixed and variable rate
General Obligation bonds, Revenue bonds,
and housing related issues. Dana further
concentrates on uncovering high quality
(A rated or better) Super Sinker municipal
bonds that demonstrate superior value relative
to other municipal issues. Super Sinkers,
also known as Single Family Revenue Bonds,
are issued by state and local governments
and act similarly to GNMA and FNMA pass-through
certificates. Portfolios generally contain
15 - 35 issues, and experience a relatively
low turnover rate of 30% per annum.
PORTFOLIO CHARACTERISTICS
Average
Quality
AAI
Average
Coupon
4.88%
Average Maturity
5.30 years
Average YTM@Mkt
4.36%
Effective Duration
3.39
HIGHER RETURNS WITH LOWER VOLATILITY
10
Year Average
Annualized Return as of 3/31/08
Standard
Deviation of Return
10 years ended
3/31/08
Dana
Municipal Bond
(Gross of Fees)
4.46%
1.74%
Blended
Benchmark
4.49%
2.19%
Dana Municipal Bond
(Net of Fees)
3.96%
* The bended benchmark for the strategy is 33% - Merrill
Lynch 1- 3 year Municipal Bond Index and 67% - Merrill
Lynch 3-7 year Municipal Bond Index. The blended benchmark
is rebalanced at the beginning of each quarter.
Dana's Municipal
Bond Strategy seeks to provide the yield of long-term
municipal securities (20+ years to maturity),
while limiting price volatility to that of the
3-5 year sector. On a taxable equivalent basis,
the strategy has consistently outperformed taxable
intermediate bond indexes for the past 10 years.
SUITABILITY
The Dana Municipal
Bond Strategy is ideal for taxable clients seeking
higher net after tax returns, with high credit
quality and limited price volatility.
Please
"Contact
Us" for additional strategy and performance
information
on the Dana Municipal Bond product.
