15800 Bluemound Rd., Suite 250 Brookfield, WI 53005 1-800-765-0157
DANA SOCIALLY
RESPONSIBLE EQUITY
STRATEGY
HIGHLIGHTS
A socially screened,
fully invested, relative value strategy
Sector neutral, industry aware
Top down risk controls, bottom up stock selection,
Has consistently outperformed the benchmark; the
Domini 400 Index since inception.
SOCIAL
SCREENING
Dana Investment
Advisors has constructed a set of resources to filter
out the companies which most socially responsible
investors wish to avoid. These standards include
the avoidance of alcohol, tobacco, gambling, nuclear
power, and military weapons. They also include evaluation
of environmental impact, citizenship, employee relations
and diversity. A goal of the strategy is to get
a broad representation of industries, so that the
screened universe will better reflect the stock
market as it exists for social investors. Another
goal is to find and include companies that are particularly
strong models of socially positive corporate behavior.
INVESTMENT
PHILOSOPHY
Dana's Socially Responsible Equity Strategy
looks for companies undervalued
relative to the other companies in the socially
screened universe, with reasonable appreciation
potential in the near term. By utilizing our
proprietary systematic and fundamental analysis
methods we create a portfolio of companies
with improving earnings outlooks, but yet
remain undervalued in the current
marketplace. By utilizing a variety of valuation
characteristics, earnings revisions and sector
neutrality we reduce downside risk by eliminating
both overpriced companies and those that are
likely to have negative earnings announcements,
but yet allow exposure to all sectors of the
market.
PORTFOLIO
CHARACTERISTICS
Value
Growth
Measure
June 2010
Dana
Social Equity
S&P
500 Index
Market Capitalization
($Billion)
10.7
8.7
Dividend yield
2.26%
2.12%
Price to Trailing 12 Month
Earnings
12.9
14.6
Price to Projected 12
Month Earnings Growth
11.3
12.4
Price to Earnings Growth (PEG)
1.4
3.1
Trailing 3 Year Earnings
Growth
9.3%
4.7%
PORTFOLIO
CONSTRUCTION
By combining factors
generated by our models, we are able to rank the
entire filtered universe of 200 securities from
most attractive to least attractive within each
sector. Portfolio construction begins by determining
the approximate dollars to invest in each sector
based on the weights of the benchmark. Our portfolios
are constructed of essentially equally weighted
security holdings, with a target portfolio of 50
companies, or about 2% of the portfolio in each
company. We then purchase with the most attractive
companies in each sector until the benchmark sector
weights are attained.
RESEARCH
PROCESS
The universe for
the Dana Socially Responsible Equity strategy
is the largest 700 companies which pass the
Dana social screens. We then use proprietary
quantitative models to screen stocks within
each sector. The models rank companies based
on three factors: value relative to other
stocks in the sector, value relative to growth,
and earnings momentum. The screening takes
the 700 company universe down to filtered
universe of approximately 200 companies.
TOP
10 HOLDINGS
as of 6/30/10
Deluxe Corp.
Norfolk Southern Corp
Mckesson Corp
NYSE Euronext Inc.
EMC Corp
Whirlpool Corp
Unum Group
Stancorp Financial Group
Xilinx Inc
Humana Inc
HIGHER RETURNS WITH LOWER VOLATILITY
Average
Annualized Return 10 Years ended 6/30/10
Standard
Deviation of Return 10 Years ended 6/30/10
Although social screening criteria do
not directly improve an equity portfolio's performance,
they also do not create a barrier to attractive equity
returns, as demonstrated by our strategy's performance.
PERFORMANCE
The Dana Socially
Responsible Equity strategy has consistently outperformed
both the S&P 500 Index and the FTSE KLD 400
Social Index since inception. Its use of valuation
and earnings revision analyses limits downside
risk by filtering out overpriced stocks and companies
that are likely to have negative earnings announcements.
SUITABILITY
The strategy is
ideal for clients seeking to invest only in companies
that practice corporate social responsibility.
The strategy avoids those companies which deal
in alcohol, tobacco, gambling and weapons; while
seeking those companies that respect the environment,
maintain good community relations and exhibit
ethical business practices.
Please
"Contact
Us" for additional strategy and performance
information
on the Dana Socially Responsible Equity product.
