Finance Committee

P O R T F O L I O A N D E C O N O M I C U P D AT E A S O F F E B RUA R Y 2 9 , 2 0 2 0 www.DanaInvestment.com  CITY OF VERONA Table of Contents Contact 3 Portfolio Update Matthew Slowinski, CFA Senior Vice President – Portfolio Manager (262) 782-6091 5 Market & Economic Updates Matt@DanaInvestment.com 12 Portfolio Holdings Robert Leuty, CFA Director of Fixed Income and Portfolio Manager RobL@DanaInvestment.com 14 Fixed Income Definitions 262-782-1876 16 Important Disclosure Information 20700 Swenson Drive Suite 400 Waukesha, Wisconsin 53186 www.DanaInvestment.com  CITY OF VERONA PORTFOLIO EXECUTIVE SUMMARY  As of February 29, 2020 the yield to maturity of the combined portfolio’s was 1.77% with an effective duration of 0.92.  Current Allocation as of February 29, 2020: • 89% Dana Limited Volatility Bond Strategy • 11% Dana Long-Term Bond Strategy www.DanaInvestment.com 3 See Important Disclosure Information  CITY OF VERONA PORTFOLIO SUMMARY Account Activity 6/16/2017 to 2/28/2020 Portfolio Allocation Current Portfolio Value on 06/16/2017 $13,289,725.98 Summary as of 2/28/2020 Market Value % Assets Income Yield Contributions/Withdrawals $7,137,542.89 Short Term Investments 1,717,959 8.0 1,139 .07 Investment Income $932,770.54 Agency Bonds 3,706,519 17.3 61,375 1.66 Unrealized Gain/Loss $227,667.30 Small Business Administration 1,446,450 6.7 0 .00 Bonds Realized Gain/Loss ($174,592.60) Mortgage Bonds 12,357,533 57.5 236,554 1.92 Change in Accrued Income $72,412.63 Corporate Bonds 2,257,065 10.5 66,531 2.97 Portfolio Value on 02/28/2020 $21,485,526.74 Total Portfolio 21,485,527 100.0 365,600 1.71 Total Gain $1,058,257.87 Total Return Earned Yield Bond Characteristics Data as of: Feb ruary 29, 2020 Average Average Average Effective All data gross of fees Annual Since Annual Since Credit Quality Yield to Worst Coupon Duration Year-to-Date Inception Inception 3680 - City of Verona Portfolio 0.81% 2.03% 1.82% Aaa 1.77% 2.53% 0.92 WI LGIP 0.14% 1.80% 1.80% - 1.10% ‡ - - ‡ WI LGIP proxy www.DanaInvestment.com 4 Inception Dates: 06/16/2017 See Important Disclosure Information  ECONOMIC & MARKET UPDATE CENTRAL BANK AND EUROPEAN CENTRAL BANK POLICY RATES AND YIELDS Data as of March 05, 2020 † Policy Rate ‡ 6M 1Y 2Y 3Y 5Y 7Y 10Y 30Y United States 1.25 0.63 0.56 0.63 0.66 0.73 0.88 0.92 1.56 Canada 1.25 1.23 1.17 0.91 0.93 0.86 0.88 0.86 1.18 New Zealand 1.00 n/a n/a 0.56 n/a 0.81 n/a 1.07 n/a Australia 0.50 n/a 0.39 0.41 0.40 0.44 0.57 0.78 135.05 Italy (0.50) (0.31) (0.28) (0.07) 0.20 0.51 0.73 1.07 2.04 United Kingdom 0.75 n/a 0.28 0.16 0.19 0.21 0.21 0.33 0.85 Spain (0.50) n/a n/a (0.47) (0.47) (0.25) (0.01) 0.21 0.99 Portugal (0.50) (0.70) (0.62) n/a (0.44) (0.14) (0.04) 0.30 n/a Ireland (0.50) (0.70) (0.69) (0.67) (0.65) (0.53) (0.43) (0.22) 0.50 France (0.50) (0.64) (0.71) (0.77) (0.74) (0.63) (0.52) (0.35) 0.42 Sweden 0.00 n/a n/a (0.36) n/a (0.55) (0.51) (0.32) n/a Belgium (0.50) n/a (0.64) (0.73) (0.77) (0.64) (0.45) (0.28) 0.40 Finland (0.50) (0.81) (0.79) (0.77) (0.74) (0.69) (0.52) (0.40) 0.05 Austria (0.50) (0.81) (0.80) (0.77) (0.75) (0.70) (0.48) (0.36) 0.13 Japan (0.10) (0.21) (0.24) (0.27) (0.29) (0.26) (0.29) (0.12) 0.34 Netherlands (0.50) n/a (0.80) (0.79) (0.81) (0.78) (0.68) (0.54) (0.17) Denmark 0.05 n/a n/a (0.87) (0.86) (0.81) n/a (0.65) n/a Germany (0.50) (0.65) (0.78) (0.85) (0.89) (0.85) (0.81) (0.69) (0.21) Switzerland (0.75) n/a (0.88) (0.90) (0.89) (0.87) (0.82) (0.81) (0.49) 03/05/2020 JLKG www.DanaInvestment.com 5 † Source FactSet Research Systems. ‡ Policy Rate Date Sources (most recent data as of access date 03/05/2020): Germany, Netherlands, Finland, Austria, France, Belgium, Ireland, Spain, Portugal, and Italy https://www.ecb.europa.eu/euro/intro/html/map.en.html, All other “Policy Rate” data accessed from https://www.global-rates.com/interest-rates/central-banks/central-banks.aspx. FactSet graph refreshed with most recent data on 03/05/2020.  ECONOMIC & MARKET UPDATE 03/05/2020 JLKG www.DanaInvestment.com 6 Source: Dana Investment Advisors and FactSet Research Systems. FactSet graph updated 03/05/2020 @ 1142am CST.  ECONOMIC & MARKET UPDATE 03/05/2020 JLKG www.DanaInvestment.com 7 FactSet chart update was run on 03/05/2020.  ECONOMIC & MARKET UPDATE  When the yield curve has inverted the economy has usually turned  The one exception since 1983 is 1998, when the Fed changed down into recession with a lag of a year or more. course, cutting the fed funds rate and averting recession. 03/05/2020 JLKG 20 20 20 20 20 20 20 20 20 20 20 19 18 17 16 15 14 13 12 11 10 09 08 20 20 20 20 20 20 20 20 20 19 19 19 07 06 05 04 03 02 01 00 99 98 97 19 19 19 19 19 19 19 19 19 19 19 96 95 94 93 92 91 90 89 88 87 86 85 19 19 19 84 83 www.DanaInvestment.com 8 FactSet Graph: update was run on 03/05/2020.  ECONOMIC & MARKET UPDATE NET NEW JOB FORMATION AND THE UNEMPLOYMENT RATE  Job growth stronger for longer in this recovery due to the depth of the last recession  3.6% unemployment rate is lower than 4.4% pre-recession low  Job growth will slow as the unemployment rate sinks lower and the economy reaches full employment U.S. Change in Nonfarm Employment (thous) and Unemployment Rate (%): 9/30/1994 through 1/31/2020 Employees, Nonfarm Payroll, SA, Thous Persons - United States Unemployment Rate, U-3, SA, Percent - United States 700 Recession Periods - United States 10.5% 600 10.0% 500 9.5% 400 9.0% 300 8.5% 200 225.00 8.0% 100 7.5% 0 7.0% -100 6.5% -200 6.0% -300 5.5% -400 5.0% -500 4.5% -600 4.0% -700 3.60 3.5% -800 3.0% Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ©FactSet Research Systems 03/05/2020 JLKG www.DanaInvestment.com 9 FactSet graph refreshed with most recent data on 03/05/2020.  ECONOMIC & MARKET UPDATE PCE – HEADLINE AND CORE Inflation: Personal Consumption Expenditure (PCE) Index 1/31/1995 Through 1/31/2020 PCE, Price Index, 2009=100, SA, Index - U.S. (1/31/2020) PCE, Excl. Food And Energy, Price Index, 2009=100, SA, Index - U.S. (1/31/2020) 4.5 Recession Periods - United States 4.5 4.0 4.0 3.5 3.5 3.0 3.0 2.5 2.5 2.0 2.0 1.73 1.63 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 -0.5 -0.5 -1.0 -1.0 ©FactSet Research Systems 03/05/2020 JLKG Personal Consumption Expenditures (PCE), or the PCE price index, is a statistic compiled and released quarterly by the U.S. Bureau of Economic Analysis (BEA)|http://bea.gov/ that synthesizes a host of data, chief among them the U.S. Producer and Consumer Price indices. The PCE price index measures the price fluctuations and related consumer behavior for all domestic consumption of durable and non-durable goods and services targeted toward individuals and households. The PCE "core index", however, excludes the more volatile components of food and energy. Personal consumption is divided into two key categories: goods and services. The category of "goods" is further broken down into "durable" goods, which are big-ticket items (refrigerators, television sets, cars, mobile phones, etc.) that will last more than three years, and "non-durable" goods that are more transitory (e.g., cosmetics, fuel, clothing, etc.). www.DanaInvestment.com PCE not only measures underlying inflationary pressures, it also reflects whether the consumer is doing his or her part to propel economic growth. Because three-fourths of Gross Domestic Product (GDP) is consumer spending, the PCE report is a useful tool for investors to analyze the overall 10 state and direction of the economy. Definition Source: https://www.merriam-webster.com/dictionary/pce. Update Schedule: https://www.bea.gov/data/personal-consumption-expenditures-price-index. FactSet graph refreshed with most recent data on 03/05/2020.  ECONOMIC & MARKET UPDATE MACROECONOMIC BACKGROUND GDP Growth Back to the Post-Recession Levels  Seven of the last eight quarters have shown GDP growth above 2.0%.  Recent economic announcements point to Q1 2020 GDP around 2.0%. Discussions in the Market  2020 GDP growth is a concern as the market waits for clues about earnings.  However fundamentals and earnings are expected to improve going forward. estimates  US Presidential elections could increase uncertainty.  Middle East tensions rise and potential impact on oil prices. Global Growth Divergence  U.S. economic growth expected to be stable over the next year and still above other developed economies. World GDP Growth Forecasts  Non-U.S. growth appears to be stabilizing at low Real GDP forecast, Total, Annual growth rate (%), 2017 – 2021 levels. 2017 2018 2019(E) 2020(E) 2021(E) 10  Monetary policy around the globe remains 7.17 Real GDP Growth (% Y/Y) accommodative. 8 6.81 5.76 6.80 6.60 6.16 6.20 5.73 4th Quarter 2019 Summary 6 5.50 6.39  Fed remains on hold after 3rd rate cut in 2019. 2.93 4 2.32  U.S. equities moved higher on Fed easing and 2.69 2.33 1.67 2.37 2.00 1.94 1.02 1.63 1.98 multiple expansion as the market received more 2 0.79 0.55 1.71 clarity on several geopolitical issues (trade tariffs & 0.74 0 Brexit). China India Japan OECD - Total United States 03/05/2020 JLKG  Recessionary concerns have somewhat abated Source:OECD (2020) , Real GDP f orecast (indicat or) . doi: 10.1787/ 1f 84150b-en ( Accessed on 18 Febr uary 2020) Not es: China is People's Republic of China; Or ganisat ion f or Economic Co-operat ion and Development ( OECD) includes 36 count ies. and the yield curve normalized. www.DanaInvestment.com 11 Definition of Real GDP forecast : Real gross domestic product (GDP) is GDP given in constant prices and refers to the volume level of GDP. Constant price estimates of GDP are obtained by expressing values of all goods and services produced in a given year, expressed in terms of a base period. Forecast is based on an assessment of the economic climate in individual countries and the world economy, using a combination of model-based analyses and expert judgement. This indicator is measured in growth rates compared to previous year. Source: Dana Investment Advisors, FactSet Research Systems.. FactSet graph refreshed with most recent data on 02/03/2020.  Dana Investment Advisors, Inc. PORTFOLIO HOLDINGS Report as of: 02/28/2020 Portfolio: 3680m - City of Verona Shares/ PAR Identifier Description Price Market Value Pct. Assets Income Cur. Accrued Yield Cash Short Term Investments 000009 Cash - Money Fund 1,447,710.60 6.76 .00 .06 20,985.61 SNVXX Schwab Govt Money Fund 1.00 20,985.61 .10 .00 1.29 Total Short Term Investments 1,468,696.21 6.86 .00 .08 Total Cash 1,468,696.21 6.86 .00 .08 Bonds Agency Bonds 550,000 3133EGDW2 FEDERAL FARM CREDIT BANK 1.52% Due 06/08/2020 99.92 549,538.00 2.57 1,881.00 1.52 500,000 3130ABMU7 FEDERAL HOME LOAN BANK 1.63% Due 06/26/2020 99.86 499,275.00 2.33 1,426.25 1.63 500,000 3134GBVN9 FREDDIE MAC 1.65% Due 07/10/2020 100.05 500,240.00 2.34 1,122.92 1.65 675,000 3134G95L7 FREDDIE MAC 1.6% Due 08/25/2021 99.77 673,454.25 3.15 120.00 1.60 475,000 3130A9NG2 FEDERAL HOME LOAN BANK 1.54% Due 10/06/2021 99.71 473,632.00 2.21 2,905.68 1.54 1,000,000 3130AHUA9 FEDERAL HOME LOAN BANK 1.85% Due 07/06/2023 100.02 1,000,200.00 4.67 2,723.61 1.85 Total Agency Bonds 3,696,339.25 17.26 10,179.46 1.66 Corporate Bonds 400,000 63254AAE8 NATIONAL AUSTRALIA BK/NY 3% Due 01/20/2023 104.61 418,420.00 1.95 1,300.00 2.87 380,000 084670BR8 BERKSHIRE HATHAWAY INC 2.75% Due 03/15/2023 103.72 394,132.20 1.84 4,760.56 2.65 325,000 961214DZ3 WESTPAC BANKING CORP 3.65% Due 05/15/2023 106.83 347,187.75 1.62 3,426.94 3.42 250,000 90331HNV1 US BANK NA CINCINNATI 3.4% Due 07/24/2023 106.50 266,240.00 1.24 826.39 3.19 365,000 02079KAB3 ALPHABET INC 3.375% Due 02/25/2024 108.14 394,714.65 1.84 136.88 3.12 400,000 037833CU2 APPLE INC 2.85% Due 05/11/2024 105.63 422,500.00 1.97 3,420.00 2.70 Total Corporate Bonds 2,243,194.60 10.48 13,870.77 2.97 Mortgage Bonds 123,276.87 3140J5WQ8 FN BM1554 3.983% Due 06/01/2042 104.79 129,179.74 .60 381.90 3.80 182,335.26 31347A2K9 FH 840778 4.18% Due 07/01/2042 104.82 191,114.89 .89 1,253.34 3.99 98,926.80 31347AHV9 FH 840244 4.035% Due 05/01/2043 104.06 102,946.29 .48 646.49 3.88 386,408.94 31288QAK6 FH 840910 4.244% Due 07/01/2043 103.39 399,495.18 1.87 2,706.92 .00 921,470.75 31347APZ1 FH 840440 2.233% Due 10/01/2043 101.45 934,832.07 4.37 3,394.96 2.20 126,883.99 31347AUT9 FH 840594 3.965% Due 11/01/2043 103.33 131,111.21 .61 827.97 .00 79,820.83 3140J5F53 FN BM1087 4.192% Due 12/01/2043 103.20 82,377.06 .38 260.25 .00 177,321.05 3140J8P31 FN BM4041 4.017% Due 05/01/2044 104.13 184,648.31 .86 554.01 3.86 93,639.16 3140J5SX8 FN BM1433 4.023% Due 07/01/2044 103.73 97,136.02 .45 293.00 3.88 139,981.96 31347A3F9 FH 840798 4.3% Due 10/01/2044 104.08 145,698.97 .68 993.49 4.13 124,537.50 31300MRZ8 FH 849504 4.108% Due 10/01/2044 103.04 128,318.18 .60 860.35 .00 116,860.88 31347ATG9 FH 840551 3.811% Due 03/01/2045 104.13 121,682.68 .57 743.04 3.66 756,449.61 31347A7L2 FH 840899 2.647% Due 11/01/2045 102.44 774,931.94 3.62 3,287.65 2.58 140,807.82 31347AZR8 FH 840752 4.08% Due 12/01/2045 103.35 145,525.20 .68 980.67 .00 742,640.28 31326NF55 FH 2B7388 2.574% Due 01/01/2046 102.26 759,401.67 3.55 3,136.82 2.52 239,989.64 31288QAM2 FH 840912 3.613% Due 03/01/2046 103.89 249,333.64 1.16 1,442.72 3.48 635,933.78 31288QA83 FH 840931 2.703% Due 11/01/2046 102.64 652,690.64 3.05 2,814.01 2.63 695,293.90 31288QD56 FH 841024 2.451% Due 02/01/2047 102.35 711,633.30 3.32 2,764.77 2.39 495,289.45 3140JAB23 FN BM5456 2.606% Due 04/01/2047 102.54 507,891.59 2.37 1,003.90 2.54 995,698.40 3140JA3Y2 FN BM6214 2.724% Due 04/01/2047 102.69 1,022,502.60 4.78 2,109.55 2.65 895,621.60 3140JAX78 FN BM6101 2.636% Due 08/01/2047 102.52 918,188.58 4.29 1,836.22 2.57 720,608.40 36179TS22 G2 MA5037 2% Due 02/20/2048 101.25 729,607.36 3.41 1,120.95 1.98 748,846.03 31288QCP3 FH 840978 2.651% Due 05/01/2048 102.15 764,911.32 3.57 3,208.88 .00 750,000 31288QEP1 FH 841042 2.4% Due 05/01/2048 102.19 766,406.25 3.58 1,400.00 2.35 922,643.44 3140JAWS3 FN BM6056 2.727% Due 09/01/2048 102.82 948,635.29 4.43 1,956.93 .00 702,313.09 3622AAGQ1 G2 784807 2.501% Due 08/20/2049 101.95 715,988.23 3.34 1,366.16 .00 Total Mortgage Bonds 12,316,188.21 57.52 41,344.95 1.92 12 See Important Disclosure Information  Dana Investment Advisors, Inc. PORTFOLIO HOLDINGS Report as of: 02/28/2020 Portfolio: 3680m - City of Verona Shares/ PAR Identifier Description Price Market Value Pct. Assets Income Cur. Accrued Yield Small Business Administration Bonds 343,552.56 83164MEG0 SBA 510035 4.579% Due 02/25/2025 102.95 353,686.92 1.65 2,554.26 .00 284,491.43 83164MEQ8 SBA 510043 3.15% Due 01/25/2028 101.38 288,428.62 1.35 1,450.79 .00 342,834.36 83164MEC9 SBA 510031 3.25% Due 11/25/2042 102.14 350,184.46 1.64 1,797.43 .00 444,768.50 83164MF79 SBA 510090 2.75% Due 01/25/2043 100.36 446,374.66 2.08 1,973.24 .00 Total Small Business Administration Bonds 1,438,674.66 6.72 7,775.72 .00 Total Bonds 19,694,396.72 91.98 73,170.90 1.85 Total Portfolio 21,163,092.93 Paydown Receivable 249,262.91 Interest Accrued 73,170.90 Dividends Accrued 0.00 Total Portfolio with Accruals & Receivables 21,485,526.74 13 See Important Disclosure Information  DANA FIXED INCOME S T R AT E G I E S ASSET CLASSES Asset Classes Used: Treasury Inflation Protected Securities (TIPs) – Short duration treasury bonds indexed for inflation U.S. Agency Bonds (Agency) – Step-coupon, callable and bullet bonds issued by Agencies of the U.S. Government Taxable Municipal Bonds (Muni) – Bonds issued by U.S. Municipalities Corporate Bonds (Corporates) – Fixed and adjustable rate corporate bonds U.S. Treasury Bonds (Treasury) – Securities issued by the U.S. Government Small Business Administration (SBAs) – Adjustable rate pools issued by the small business administration U.S. Agency Mortgage Backed Securities (MBS) – Fixed and adjustable-rate MBS/CMBS/CMO securities issued by U.S. Agencies Repurchase Agreements (Repo) - Classified as a type of money-market instrument, a Repo functions in effect as a short-term, collateral-backed, interest- bearing loan Common Issuers Fannie Mae (FNMA): A federally chartered, but privately owned, corporation which traces its roots to a government agency created in 1938 to provide additional liquidity to the residential mortgage market. In 1968 Ginnie Mae was spun off from Fannie Mae and Fannie Mae became a government sponsored private corporation. Fannie Mae has had regular capital infusions from the Treasury, and has been under the direction of the Federal Housing Finance Agency since 2008. Ginnie Mae (GNMA): In 1968, Congress established the Government National Mortgage Association, commonly known as Ginnie Mae, as a government-owned corporation within the Department of Housing and Urban Development (HUD). Ginnie Mae securities carry the full faith and credit guarantee of the United States government. Freddie Mac (FHLMC): A publicly owned or privately-owned corporation established by Congress in 1970 to provide a continuous flow of funds to mortgage lenders, primarily through developing and maintaining an active nationwide secondary market in conventional residential mortgages. Like Fannie Mae, Freddie Mac purchases a large volume of conventional residential mortgages and uses them to collateralize mortgage backed securities. Freddie Mac is currently under the direction of the Federal Housing Finance Agency. U. S. Small Business Administration (SBA): SBA was created in 1953 as a government agency that provides financing programs to assist small businesses in the U. S. Small business loans are made by banks under standards maintained by the SBA, and the guaranteed portion of the loan can be securitized and sold in the secondary market. These securities typically adjust their coupon monthly or quarterly at a spread above or below the prime rate. www.DanaInvestment.com 14 Source: Dana Investment Advisors, Inc.  DANA FIXED INCOME S T R AT E G I E S A SAMPLE OF ADJUSTABLE RATE RESET INDICES Common Coupon Reset Indices (ARMs/SBAs): The Index Treasury: A common Treasury-based ARM index is the One-Year CMT (Constant Maturity Treasury) index. The One-Year CMT is the average yield of all treasury securities having one year remaining until maturity. The index is calculated weekly or monthly using market reports by five leading government securities dealers. The weekly index is published each Monday in the Federal Reserve Statistical Release H. 15 (519) and can be found on the various wire services. LIBOR: LIBOR is the London Inter-bank Offered Rate, at which major international banks offer to place deposits with one another for maturities from overnight to five years. This rate has become a popular index worldwide and is used by U.S. institutions. Index options range from a one-month to one-year LIBOR. Fannie Mae offers several index options as well, but the most common securitized Fannie Mae ARM MBS are six-month and one-year LIBOR, as published in The Wall Street Journal. Cost of Funds: The most common cost of funds index (COFI), 11th District COFI, is determined by the monthly weighted-average cost of savings, borrowings, and advances for member institutions of the 11th District Federal Home Loan Bank (FHLB). This district includes Arizona, California, and Nevada. The FHLB of San Francisco reports this index on the last business day of the month. Unlike the treasury indices, COFI indices have traditionally reacted more slowly to short-term market rate movements due in part to the varying maturities of the liabilities that make up the index. CD Index: The weekly average of secondary market interest rates on nationally traded six month negotiable certificates of deposit, as published by the Federal Reserve Board in the Federal Reserve Statistical Release entitled “H.15 Selected Interest Rates (Daily)” (the “H.15 Release”), which is published on the Federal Reserve’s website at www.federalreserve.gov/releases/H15/update. Contract Rate Index: The “National Average Contract Interest Rate for the Purchase of Previously Occupied Homes by Combined Lenders,” as released by the Federal Housing Finance Board. Federal COF Index: The average of the interest rates for marketable U.S. Treasury bills and notes, as calculated and released by Freddie Mac. National COF Index: The “Monthly Median Annualized Cost of Funds for OTS-Regulated Institutions,” as released by the Office of Thrift Supervision. Prime Rate: The prime lending rate of major banks as published in the H.15 Release. Semi-annual Secondary Market Treasury Index: The weekly average discount prevailing in weekly secondary market trading of six-month U.S. Treasury bills as published in the H.15 Release, as calculated from composites of quotations reported by five leading U.S. government securities dealers to the Federal Reserve Bank of New York. 2 www.DanaInvestment.com 15 Source: Dana Investment Advisors, Inc.  DANA INVESTMENT ADVISORS DISCLOSURE Dana Investment Advisors, Inc. is an independent federally registered investment adviser providing equity and fixed income investment management services to a broad range of clients. All data is presented in U.S. Dollars. Portfolio Characteristics, Performance Report, Portfolio Holdings, and Sector Distributions reflect applicable investment holdings as of market close on the date indicated. Returns presented are exclusive of investment management and custodial fees, and net of transaction costs. Investment management fees would reduce the returns presented, for example: on a one-million dollar portfolio with an advisory fee of .75% earning a 10% return, the total compounded advisory fee over a five year period would be $50,368. The resulting average annual return for the period would therefore be 9.17%. All returns were calculated on a time weighted total return basis. Performance does include the accrual of income and the reinvestment of dividends and interest received. During various market cycles, the strategies discussed herein have demonstrated portfolio characteristics and returns that have been both more and less volatile than that of the comparable index. Indices shown were selected because they demonstrated a broad range of characteristics, some of these characteristics being deemed useful for limited comparison purposes only. Historical performance results for investment indices and/or categories have been provided for general comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results. It should not be assumed that your account holdings do or will correspond directly to any comparative indices. While data contained herein was gathered from sources deemed reliable, the accuracy of the data presented cannot be guaranteed. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy made reference to directly or indirectly in this report, will be profitable, equal any corresponding indicated historical performance level(s), or will continue to be suitable for your portfolio. Due to various factors, including changing market conditions, the content of this report may no longer be reflective of current opinions, positions, investments or account allocations. Moreover, you should not assume that any discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from Dana Investment Advisors, Inc. Dana Investment Advisors is not a custodian. Clients should be receiving detailed statements from their custodian at least quarterly. While Dana Investment Advisors regularly reconciles to custodian information, we encourage clients to review their custodian statement(s). The market prices shown on these pages represent the last reported sale on the stated report date as to listed securities or the bid price in the case of over-the-counter quotations. Prices on bonds and some other investments are based on round lot price quotations and are for evaluation purposes only and may not represent actual market values. Bonds sold on an odd lot basis (less than $1 million) may have a dollar price lower than the round lot quote. Where no regular market exists, prices shown are estimates by sources considered reliable by Dana Investment Advisors, Inc. While the prices are obtained from sources we consider reliable, we cannot guarantee them. Please remember to contact Dana Investment Advisors, Inc. at (800) 765-0157, or P.O. Box 1067 Brookfield, WI 53008 with any questions or if there are any changes in your personal financial situation or investment objectives for the purpose of reviewing, evaluating, and revising any previous recommendations or investment services. Please also advise Dana if you would like to impose, add, or modify any reasonable restrictions to your account. A copy of Dana’s current Form ADV Brochure detailing a complete list of Dana’s advisory services and fees continues to remain available for your review upon request. Current List of Holdings: The market prices shown on these pages represent the last reported sale on the stated report date as to listed securities or the bid price in the case of over-the-counter quotations. Prices on bonds and some other investments are based on round lot price quotations and are for evaluation purposes only and may not represent actual market values. Bonds sold on an odd lot basis (less than $1 million) may have a dollar price lower than the round lot quote. Where no regular market exists, prices shown are estimates by sources considered reliable by Dana Investment Advisors. While the prices are obtained from sources we consider reliable, we cannot guarantee them. Dana Investment Advisors is not a custodian. Clients should be receiving detailed statements from their custodian at least quarterly. While Dana Investment Advisors regularly reconciles to custodian information, we encourage clients to review their custodian statement(s). www.DanaInvestment.com 16 20700 Swenson Drive Suite 400 Waukesha, Wisconsin 53186 Mailing Address: P.O. Box 1067 Brookfield, Wisconsin 53008-1067 800-765-0157 www.DanaInvestment.com