Investment DANA EQUITY STRATEGIES.

Transcription

1 Investment DANA Advisors DANA EQUITY

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 $7.45 billion of assets under advisement as of December 31, 2018 Headquartered in Brookfield, Wisconsin We ve never wavered from our goal of providing above market returns while reducing volatility for our clients. 2019/01/23 3

4 DANA INVESTMENT ADVISORS AWARDS AND RECOGNITION Pensions & Investments Best Places to Work Award Asset Manager of the Year U.S. Large Cap Equity Impact Manager of the Year Award Dana s Social ESG Equity Strategy 2019/01/23 We are delighted to be named to Pension & Investments Best Places to Work in Money Management. Dana Investment Advisors is one of only five firms to have received this recognition for seven consecutive years, since P&I began its program in CEO Mark Mirsberger stated, Being named to Pensions and Investments Best Places to Work list for the seventh year in a row is a great honor. A lot is asked of our employees as we work in a very demanding field. High employee satisfaction and retention lead to strong client relationships and business results. It should come as no surprise that we integrate these insights into our research process to help us identify investible companies benefiting from similar values and practices. Dana Investment Advisors was presented with the 2018 Asset Manager of the Year for the category U.S. Equity Large Cap. This was the 14th annual Asset Manager Awards by Envestnet and the second time Dana has won the U.S. Equity Large Cap Category. The Asset Managers of the Year competition recognizes best-in-class portfolio managers who outperform their peers, which is difficult even in the best environments, said Tim Clift, Chief Investment Strategist of Envestnet PMC. The award supports our belief that consistent application of a defined investment process focused on stock selection and risk controls does win in the end. Our team has worked very hard to validate the benefits of active management and this award serves as confirmation of their efforts and a thank you to all those clients who have entrusted us with their assets said Mark Mirsberger, Chief Executive Officer. Dana Investment Advisors has been named the SMA Impact Manager of the Year by Envestnet PMC. This was the 11 th annual SMA Awards by Envestnet and the first time an award was given in the Impact space. Dana s Director of Equities and Portfolio Manager, Duane Roberts, notes that contrary to many investors conception, integrating environmental, social and governance (ESG) criteria into the portfolio management process may enhance financial returns. We have delivered consistent, superior investment performance over the Social ESG Equity Strategy s 15 year history. 4

5 DANA EQUITY INVESTMENT PHILOSOPHY AND PROCESS Investment Philosophy We strive to generate excess risk-adjusted returns through a consistent and disciplined investment process. 10/22/2018 5

6 DANA EQUITY INVESTMENT PHILOSOPHY AND PROCESS Relative Valuation Sector Neutral Equal Weighting Position Size Limits Fully Invested 10/22/ % 51.7% 2.0% -6.9% 46.6% 28.8% 29.1% 36.5% 32.4% -17.7% 59.9% 27.6% 19.9% 28.8% 43.1% 29.0% 10.1% 27.3% 38.8% 24.1% 23.0% 20.0% 17.4% 16.0% 2.3% -11.6% -12.8% -16.6% 35.6% 23.4% 14.5% 13.2% 4.5% -17.7% -20.7% -40.0% -41.0% 1.0% -13.0% Dana s sector neutral investment approach recognizes it is very difficult to predict future sector performance. Dana s Risk Approach: are the groundwork for our repeatable and consistent investment process. -7.0% -8.3% -10.5% -12.3% -13.7% -26.0% -32.5% -7.7% -13.3% -16.4% -20.0% -24.5% -27.6% -33.0% -35.9% -37.6% 36.1% 34.8% 29.8% 27.9% 22.4% 21.1% 13.3% 9.2% 3.3% 19.6% 16.0% 16.0% 12.1% 10.8% 8.2% 6.0% 2.1% 0.2% 12.8% 4.9% 3.7% 2.2% 1.3% 0.4% 0.4% -7.4% -9.1% S&P 500 Sector Performance 23.7% 21.5% 19.8% 19.5% 18.9% 14.3% 13.8% 7.9% 7.8% 20.0% 15.8% 15.5% 11.6% 9.8% 8.5% 5.4% -14.3% -20.8% -24.5% -31.6% -33.6% -34.7% -35.9% -41.5% -43.7% -47.1% -57.0% 45.2% 38.8% 17.3% 17.1% 14.8% 11.3% 11.2% 6.8% 2.6% 26.9% 22.9% 19.7% 19.5% 14.2% 12.2% 10.5% 5.5% 2.8% 13.9% 12.7% 6.3% 6.1% 4.7% 2.4% -0.6% -9.7% -17.1% 23.9% 18.3% 17.7% 15.3% 15.0% 14.7% 10.8% 4.4% 1.7% 41.5% 40.7% 35.6% 28.4% 26.1% 25.6% 25.1% 13.2% 11.5% 25.3% 20.1% 16.0% 15.2% 9.8% 9.7% 6.9% 3.0% -7.8% 7.0% 6.6% 5.9% 3.4% -1.5% -2.7% -4.9% -8.4% -21.1% 23.5% 21.7% s 18.4% 16.4% 15.9% 13.9% 6.1% 5.4% Real Estate 3.7% -2.5% 23.8% 23.0% 22.2% 22.0% s 21.3% 13.5% 11.8% Real Estate 10.8% -1.1% -1.3% 2018? 6 Source: Dana Investment Advisors; Bloomberg and FactSet Data Systems

7 DANA EQUITY INVESTMENT PHILOSOPHY AND PROCESS Valuations (Quantitative Analysis) Growth Estimate Revisions The idea generation phase RELATIVE VALUATION MODEL VALUE RELATIVE TO GROWTH MODEL ESTIMATE REVISIONS MODEL leverages our propriety models to generate segmented data that efficiently focuses our research on improving or deteriorating trends within sectors, industries DANA RANK or individual companies. We feel this dynamic component is a key advantage and provides a platform that focuses our stock 10/22/2018 selection. 7

8 DANA EQUITY INVESTMENT PHILOSOPHY AND PROCESS Business Model & Management Profitability Cash Flow Earnings Decomposition Fundamental analysis is the basis for all of Dana s investment decisions Business Model Profitability Cash Flow Earnings Decomposition Quality of Management Quality of Environmental, Social, and Governance Factors Competitive advantages ROE / ROA Margins Impact of leverage Earnings history Operating Free Capital requirements Uses of cash Estimates and execution Surprise history components and revision trends Earnings quality 10/22/2018 8

9 DANA EQUITY INVESTMENT PHILOSOPHY AND PROCESS Fundamental Characteristics Relative Strength Model Ranking Rebalance Fundamental analysis drives the Dana sell discipline Fundamental Characteristics Relative Strength Model Ranking Rebalance Company execution More attractive risk reward opportunity Sector Performance Industry Performance Relative valuation model Value-to-growth model Position weight Sector weight Industry dynamics Estimate revisions model 10/22/2018 9

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