Investment OVERVIEW: 4 TH QUARTER 2017 DANA FIXED INCOME STRATEGIES.

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1 Investment DANA Advisors OVERVIEW: 4 TH QUARTER 2017 DANA FIXED INCOME

2 THE WISE CHOICE HERITAGE A strong family culture Since our founding in 1980, Dana has remained independent and Employee-owned. Our investment firm is built on trust, integrity, and professional experience. QUALITY Excellence in meeting client expectations Dana strives to provide personalized client service and excellence in everything it does. We are uncompromising in our efforts to deliver superior results to clients. EXPERTISE Focus on what we do best Dana has assembled an investment team with diverse skill sets and specialized knowledge. We are adept at navigating challenging market environments and developing customized solutions. CONSISTENCY Adherence to a uniform process Dana implements a uniform investment process to minimize volatility and improve consistency of returns. We seek repeatable and predictable results to most effectively grow cumulative wealth. Investment DANA Advisors 2

3 DANA INVESTMENT ADVISORS Dana Investment Advisors was built on the belief that adhering to a defined investment process allows our professionals to focus on the fundamentals of consistent outperformance through security selection. Founded in 1980 Employee-owned Domestic equity, taxable and tax-exempt fixed income, and ESG asset manager Manage $7.5 billion as of December 31, 2017 Headquartered in Brookfield, Wisconsin We ve never wavered from our goal of providing above market returns while reducing volatility for our clients. Pensions & Investments Best Places to Work Award 2017 / 2016 / 2015 / 2014 / 2013 / 2012 Dana Investment Advisors has been recognized as the top place to work 2017 Best Places to Work in Money Management by Pensions & Investments. This is the sixth year in a row Dana Investment Advisors has been awarded this industry distinction. We are honored that Pensions & Investments has again recognized us for our strong culture, dedication to our employees, and social impact stated Mark Mirsberger, Firm CEO, adding, Our strong family/employee culture directly impacts our client experience as clients benefit from working with and developing strong relationships with a passionate team that essentially has little to no turnover for decades. 3

4 Investment Philosophy We strive to generate excess risk-adjusted returns through a consistent and disciplined investment process. 4

5 Attractive Income Consistent Risk-Adjusted Returns Principal Preservation Risk Parameters Tax Situation We believe that a well-diversified investment portfolio should contain a variety of fixed income strategies to produce repeatable and predictable results, making it easier to grow cumulative wealth. Dana therefore applies a uniform investment process to improve consistency of returns and reduce volatility. Diversification Stable Returns Lower Volatility 5

6 Economic Policy Monetary Policy Market Cycle Recovery Expansion Contraction Recession Geopolitics U.S. GROSS DOMESTIC PRODUCT (GDP) 10% 8% Real GDP*; Most Recent Change as of 29-Dec-2017 = 2.89% Recession Periods - United States 10% 8% 6% 6% Percent Change from Preceding Period 4% 2% 0% -2% -4% % 2% 0% -2% -4% Percent Change from Preceding Period -6% -6% -8% -8% -10% % * Billions of Chained 2009 Prices (USD), Percent Change from Preceding Period, Seasonally Adjusted Annual Rate (SAAR) Source:U.S. Bureau of Economic Analysis, Real Gross Domestic Product [A191RL1Q225SBEA], retrieved from FRED, Federal Reserve Bank of St. Louis; March 28,

7 Fundamental Analysis Cash Flows Credit Research Liquidity U.S. 10 YEAR TREASURY YIELD 3.0% 2.8% 2.6% 2.4% 12/31/ /16/ From 12/31/2015 (2.27) to 03/28/2018 (2.79) 3/13/ /7/ /26/ % 2.8% 2.6% 2.4% Historically, forecasting the direction of interest rates has proven to be difficult and inconsistent. 2.2% 2.0% 1.8% 1.6% 1.4% 1.2% 2/11/ /23/ /8/ /4/ /24/ /8/ % 2.0% 1.8% 1.6% 1.4% 1.2% Instead of relying on consensus forecasts, Dana constructs duration controlled portfolios that perform consistently over a variety of interest rate cycles. Mar 18 Feb 18 Jan 18 Dec 17 Nov 17 Oct 17 Sep 17 Aug 17 Jul 17 Jun 17 May 17 Apr 17 Mar 17 Feb 17 Jan 17 Dec 16 Nov 16 Oct 16 Sep 16 Aug 16 Jul 16 Jun 16 May 16 Apr 16 Mar 16 Feb 16 Jan 16 Source: Board of Governors of the Federal Reserve System (US); 10-Year Treasury Constant Maturity Rate [DGS10], retrieved from FRED, Federal Reserve Bank of St. Louis; 3/28/2018 7

8 Structure Analysis Bullet Securities Amortizing Securities Callable Securities Serial Bonds Security Selection Security Analysis Spread Analysis Duration Analysis Convexity Analysis Maturity Analysis Coupon Analysis (Fixed / Floating) Correlation Effects Diversification Position Sizing Fixed Income Sector Target Portfolio Sector Structure Structure Security Security Duration Quality 8

9 Performance Review Investment Policy Compliance Market Analysis Performance Review Investment Policy Compliance Market Analysis Tracking Error Attribution Credit Ratings Duration Maturity Restriction Industry Concentration Environmental, Social, and Governance Evaluation Spread Analysis Low Quality versus High Quality 9

10 Investment Committee Review Risk Controls Fixed Income Committee Review Internal Controls Best Execution Custodian Reconciliation Accounting Compliance Macro Economics Monetary Policy Sector Rotation Security Selection Compliance Investment Committee Fixed Income Committee Internal Controls Risk controls are a critical element in our investment process. A dynamic market environment calls for ongoing monitoring of portfolio risks to ensure responsible capital growth. Custodian Reconciliation 10

11 Investment DANA Advisors Physical Address: Swenson Drive Suite 400 Waukesha, Wisconsin Mailing Address: P.O. Box 1067 Brookfield, Wisconsin (262) (800)