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
The Domini
Social Index (DSI) was created by Kinder, Lydenberg,
Domini and Co., Inc. (KLD) in May 1990. KLD constructed
a set of screening standards to filter out the companies
which most social 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. About
half the Standard & Poor 500 companies qualify
for the DSI. KLD then adds about 150 additional
companies with two goals in mind. One goal is to
get a broad representation of industries, so that
the index 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.
For more information on the KLD and the Domini Social
Index please visit www.kld.com.
INVESTMENT
PHILOSOPHY
Dana's Socially Responsible Equity Strategy
looks for companies undervalued
relative to the other companies within the
Domini Social Index, 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
March 2008
Dana
Social Equity
Domini
400 Cap Weighted
Market Capitalization
($Billion)
47.3
96.5
Dividend yield
1.74%
2.16%
Price to Cash Flow
9.7
8.9
Price to Trailing 12 Month
Earnings
15.8
15.5
Price to Projected 1 Year
Earnings Growth
1.2
1.2
Projected 5 Year Earnings
Growth
13.1
12.6
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 common stocks of the 400 companies
listed in the Domini 400 Social Index. 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 400 company universe
down to filtered universe of approximately
200 companies.
TOP
10 HOLDINGS
as of 3/31/08
Helmerich & Payne
International Business Machines Corp.
General Mills Inc.
CVS Corporation
Cummins Inc
Hewlett Packard Company
Pepsico Inc
Lincoln Electric Holdings
AT&T Inc.
J. P. Morgan Chase & Company
HIGHER RETURNS WITH LOWER VOLATILITY
Average
Annualized Return Since Inception as of 3/31/08
Standard
Deviation of Return Since Inception to 3/31/08
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
the Domini 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.
