UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-5003
Blue Chip Value Fund, Inc.
(Exact name of registrant as specified in charter)
1225 17th Street, 26th Floor,
Denver, Colorado 80202
(Address of principal executive offices) (Zip code)
Michael P. Malloy
Drinker Biddle & Reath LLP
One Logan Square
18
th
& Cherry Streets
Philadelphia, Pennsylvania 19103-6996
(Name and address of agent for service)
Registrants Telephone Number, including Area Code:
(800)
624-4190
Date of fiscal year end:
December 31
Date of reporting period:
September 30, 2010
Item 1 Schedule of
Investments.
Blue Chip Value
Fund, Inc.
STATEMENT OF INVESTMENTS
September 30, 2010
(Unaudited)
|
|
|
Market
|
|
Shares
|
Cost
|
Value
|
COMMON STOCKS - 97.74%
|
|
|
|
|
|
|
|
BASIC MATERIALS - 6.13%
|
|
|
|
Chemicals - 1.02%
|
|
|
|
Ecolab Inc.
|
20,500
|
$ 930,335
|
$ 1,040,170
|
|
|
|
|
Forestry & Paper -
4.04%
|
|
|
|
Ball Corp.
|
37,440
|
1,956,262
|
2,203,344
|
International Paper Co.
|
88,800
|
2,039,599
|
1,931,400
|
|
|
3,995,861
|
4,134,744
|
Specialty Chemicals -
1.07%
|
|
|
|
Agrium Inc. (Canada)
|
14,600
|
980,794
|
1,094,854
|
|
|
|
|
TOTAL BASIC MATERIALS
|
|
5,906,990
|
6,269,768
|
CAPITAL GOODS - 4.31%
|
|
|
|
Aerospace & Defense -
2.45%
|
|
|
|
General Dynamics Corp.
|
19,700
|
1,287,864
|
1,237,357
|
Raytheon Co.
|
27,700
|
1,309,503
|
1,266,167
|
|
|
2,597,367
|
2,503,524
|
Industrial Products -
1.86%
|
|
|
|
ITT Corp.
|
40,700
|
2,225,406
|
1,905,981
|
|
|
|
|
TOTAL CAPITAL GOODS
|
|
4,822,773
|
4,409,505
|
COMMERCIAL SERVICES -
4.38%
|
|
|
|
Business Products &
Services - 1.88%
|
|
|
|
Quanta Services Inc.
**
|
101,000
|
3,109,759
|
1,927,080
|
|
|
|
|
IT Services - 1.25%
|
|
|
|
Computer Sciences Corp.
|
27,750
|
1,457,061
|
1,276,500
|
|
|
|
|
Transaction Processing -
1.25%
|
|
|
|
The Western Union Co.
|
72,400
|
1,185,429
|
1,279,308
|
|
|
|
|
TOTAL COMMERCIAL SERVICES
|
|
5,752,249
|
4,482,888
|
COMMUNICATIONS - 5.53%
|
|
|
|
Networking - 1.73%
|
|
|
|
Cisco Systems Inc.
**
|
81,000
|
1,931,857
|
1,773,900
|
|
|
|
|
Telecomm Equipment &
Solutions - 3.80%
|
|
|
|
QUALCOMM Inc.
|
52,000
|
2,348,445
|
2,346,240
|
Research In Motion Ltd.
(Canada)
**
|
31,600
|
1,943,846
|
1,538,604
|
|
|
4,292,291
|
3,884,844
|
|
|
|
|
TOTAL COMMUNICATIONS
|
|
6,224,148
|
5,658,744
|
CONSUMER CYCLICAL - 9.63%
|
|
|
|
Apparel & Footwear
Manufacturers - 3.70%
|
|
|
|
Nike Inc. - Class B
|
27,850
|
1,749,317
|
2,231,899
|
VF Corp.
|
19,200
|
1,468,987
|
1,555,584
|
|
|
3,218,304
|
3,787,483
|
Department Stores - 2.17%
|
|
|
|
Macy's Inc.
|
96,400
|
1,712,670
|
2,225,876
|
Other Consumer Services -
1.49%
|
|
|
|
Expedia Inc.
|
54,000
|
$ 1,251,274
|
$ 1,523,340
|
|
|
|
|
Restaurants - 1.08%
|
|
|
|
Darden Restaurants Inc.
|
25,740
|
807,204
|
1,101,157
|
|
|
|
|
Specialty Retail - 1.19%
|
|
|
|
Best Buy Co. Inc.
|
29,800
|
1,080,330
|
1,216,734
|
|
|
|
|
TOTAL CONSUMER CYCLICAL
|
|
8,069,782
|
9,854,590
|
CONSUMER STAPLES - 10.81%
|
|
|
|
Beverages: Non-Alcoholic
- 1.79%
|
|
|
|
Dr Pepper Snapple Group Inc.
|
51,400
|
1,894,069
|
1,825,728
|
|
|
|
|
Consumer Products - 2.44%
|
|
|
|
Colgate Palmolive Co.
|
32,500
|
2,584,049
|
2,497,950
|
|
|
|
|
Food & Agricultural
Products - 6.58%
|
|
|
|
Campbell Soup Co.
|
60,700
|
2,214,924
|
2,170,025
|
H.J. Heinz Co.
|
44,000
|
1,977,642
|
2,084,280
|
Unilever N.V. (Netherlands)
|
82,900
|
2,937,586
|
2,477,052
|
|
|
7,130,152
|
6,731,357
|
|
|
|
|
TOTAL CONSUMER STAPLES
|
|
11,608,270
|
11,055,035
|
ENERGY - 9.81%
|
|
|
|
Exploration &
Production - 3.16%
|
|
|
|
Occidental Petroleum Corp.
|
41,280
|
2,859,668
|
3,232,224
|
|
|
|
|
Integrated Oils - 4.15%
|
|
|
|
Exxon Mobil Corp.
|
23,300
|
1,686,119
|
1,439,707
|
Marathon Oil Corp.
|
84,800
|
2,867,972
|
2,806,880
|
|
|
4,554,091
|
4,246,587
|
Oil Services - 2.50%
|
|
|
|
Ensco PLC, ADR (United
Kingdom)
|
29,300
|
1,363,319
|
1,310,589
|
Noble Corp. (Switzerland)
|
36,700
|
1,415,318
|
1,240,093
|
|
|
2,778,637
|
2,550,682
|
|
|
|
|
TOTAL ENERGY
|
|
10,192,396
|
10,029,493
|
INTEREST RATE SENSITIVE -
12.97%
|
|
|
|
Money Center Banks -
5.20%
|
|
|
|
Bank of America Corp.
|
198,400
|
3,260,185
|
2,601,024
|
JPMorgan Chase & Co.
|
71,400
|
2,995,941
|
2,718,198
|
|
|
6,256,126
|
5,319,222
|
Property Casualty
Insurance - 3.52%
|
|
|
|
ACE Ltd. (Switzerland)
|
35,600
|
1,893,977
|
2,073,700
|
The Travelers Cos. Inc.
|
29,300
|
1,412,210
|
1,526,530
|
|
|
3,306,187
|
3,600,230
|
Regional Banks - 1.51%
|
|
|
|
PNC Financial Services Group
Inc.
|
29,700
|
1,645,597
|
1,541,727
|
|
|
|
|
Securities & Asset
Management - 1.77%
|
|
|
|
The Goldman Sachs Group Inc.
|
12,500
|
1,709,211
|
1,807,250
|
|
|
|
|
Thrifts - 0.97%
|
|
|
|
Annaly Capital Management
Inc., REIT
|
56,400
|
991,952
|
992,640
|
|
|
|
|
TOTAL INTEREST RATE
SENSITIVE
|
|
13,909,073
|
13,261,069
|
MEDICAL & HEALTHCARE
- 11.77%
|
|
|
|
Medical Technology -
2.24%
|
|
|
|
Zimmer Holdings Inc.
**
|
43,800
|
2,983,304
|
2,292,054
|
Pharmaceuticals
- 9.53%
|
|
|
|
Abbott Laboratories
|
47,300
|
$
2,501,460
|
$ 2,470,952
|
Amgen Inc.
**
|
48,700
|
2,907,984
|
2,683,857
|
Forest
Laboratories Inc.
**
|
71,500
|
1,945,351
|
2,211,495
|
Pfizer Inc.
|
138,368
|
2,485,244
|
2,375,779
|
|
|
9,840,039
|
9,742,083
|
|
|
|
|
TOTAL
MEDICAL & HEALTHCARE
|
|
12,823,343
|
12,034,137
|
TECHNOLOGY - 11.75%
|
|
|
|
Computer Software - 4.88%
|
|
|
|
Microsoft Corp.
|
101,800
|
2,724,343
|
2,493,082
|
Symantec Corp.
**
|
164,600
|
2,889,054
|
2,496,982
|
|
|
5,613,397
|
4,990,064
|
PC's & Servers -
4.73%
|
|
|
|
Dell Inc.
**
|
134,500
|
1,926,567
|
1,743,120
|
International Business
Machines Corp.
|
23,100
|
2,721,975
|
3,098,634
|
|
|
4,648,542
|
4,841,754
|
Semiconductors - 2.14%
|
|
|
|
Altera Corp.
|
27,400
|
543,162
|
826,384
|
Intel Corp.
|
70,800
|
1,331,054
|
1,361,484
|
|
|
1,874,216
|
2,187,868
|
TOTAL TECHNOLOGY
|
|
12,136,155
|
12,019,686
|
TRANSPORTATION - 4.53%
|
|
|
|
Railroads - 4.53%
|
|
|
|
Norfolk Southern Corp.
|
44,500
|
2,343,232
|
2,648,195
|
Union Pacific Corp.
|
24,300
|
1,499,339
|
1,987,740
|
|
|
3,842,571
|
4,635,935
|
|
|
|
|
TOTAL TRANSPORTATION
|
|
3,842,571
|
4,635,935
|
UTILITIES - 6.12%
|
|
|
|
Independent Power - 2.16%
|
|
|
|
Exelon Corp.
|
25,200
|
962,499
|
1,073,016
|
Public Service Enterprise
Group Inc.
|
34,400
|
1,111,773
|
1,137,952
|
|
|
2,074,272
|
2,210,968
|
Integrated Gas &
Electric - 1.04%
|
|
|
|
Dominion Resources Inc.
|
24,200
|
977,540
|
1,056,572
|
|
|
|
|
Regulated Electric -
2.92%
|
|
|
|
Edison International
|
57,300
|
1,826,340
|
1,970,547
|
Entergy Corp.
|
13,300
|
975,131
|
1,017,849
|
|
|
2,801,471
|
2,988,396
|
|
|
|
|
TOTAL UTILITIES
|
|
5,853,283
|
6,255,936
|
TOTAL COMMON STOCKS
|
|
101,141,033
|
99,966,786
|
|
|
|
|
SHORT TERM INVESTMENTS -
2.21%
|
|
|
|
Fidelity Institutional Money
Market Government Portfolio - Class I
|
|
|
|
(7 Day Yield 0.06%)
(1)
|
2,256,756
|
2,256,756
|
2,256,756
|
TOTAL SHORT TERM INVESTMENTS
|
|
2,256,756
|
2,256,756
|
|
|
|
|
TOTAL INVESTMENTS
|
99.95%
|
$ 103,397,789
|
$ 102,223,542
|
Other Assets in Excess of
Liabilities
|
0.05%
|
|
48,212
|
NET ASSETS
|
100.00%
|
|
$ 102,271,754
|
** Non-dividend paying stock
(1)
Investments in other funds are
calculated at their respective net asset values or determined by those funds,
in accordance with the Investment
Company Act of 1940.
ADR - American Depositary Receipt
Ltd. - Limited
N.V.
- Naamloze Vennootschap is the Dutch term for a public limited liability
corporation. PLC - Public Limited Co.
REIT - Real Estate
Investment Trust
Sector and industry classifications presented herein are
based on the sector and industry categorization methodology of the Investment
Adviser to the Fund.
COUNTRY BREAKDOWN
|
|
|
As of September 30, 2010
(Unaudited)
|
|
|
|
Market
|
|
Country
|
Value
|
%
|
United States
|
$ 92,488,650
|
90.43%
|
Switzerland
|
3,313,793
|
3.24%
|
Canada
|
2,633,458
|
2.58%
|
Netherlands
|
2,477,052
|
2.42%
|
United Kingdom
|
1,310,589
|
1.28%
|
Total Investments
|
$ 102,223,542
|
99.95%
|
Other Assets in Excess of
Liabilities
|
48,212
|
0.05%
|
Net Assets
|
$ 102,271,754
|
100.00%
|
Please note the country classification is based on the
company headquarters. All of the Fund's investments are traded on U.S.
exchanges.
See accompanying notes
to statement of investments.
BLUE CHIP VALUE FUND
NOTES TO STATEMENT OF INVESTMENTS
September 30, 2010 (Unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Blue Chip Value Fund, Inc. (the
Fund) is registered under the Investment Company Act of 1940, as amended, as
a diversified, closed-end management investment company.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its
statement of investments.
Security Valuation
All
securities of the Fund are valued as of the close of regular trading on the New
York Stock Exchange (NYSE), currently 4:00 p.m. (Eastern Time), on each day
that the NYSE is open. Listed securities are generally valued at the last sales
price as of the close of regular trading on the NYSE. Securities traded on the
National Association of Securities Dealers Automated Quotation (NASDAQ) are
generally valued at the NASDAQ Official Closing Price (NOCP). In the absence
of sales and NOCP, such securities are valued at the mean of the bid and asked
prices.
Securities having a remaining
maturity of 60 days or less are valued at amortized cost which approximates
market value.
When market quotations are not
readily available or when events occur that make established valuation methods
unreliable, securities of the Fund may be valued at fair value determined in
good faith by or under the direction of the Board of Directors. Factors which
may be considered when determining the fair value of a security include (a) the
fundamental data relating to the investment; (b) an evaluation of the forces
which influence the market in which the security is sold, including the
liquidity and depth of the market; (c) the market value at date of purchase;
(d) information as to any transactions or offers with respect to the security
or comparable securities; and (e) any other relevant matters.
Investment Transactions
Investment
transactions are accounted for on the date the investments are purchased or
sold (trade date). Realized gains and losses from investment transactions and
unrealized appreciation and depreciation of investment are determined on the
specific identification basis for both financial statement and federal income
tax purposes. Dividend income is recorded on the ex-dividend date. Interest
income, which includes interest earned on money market funds, is accrued and
recorded daily.
Use of Estimates
The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and disclosures made in the accompanying notes to the financial
statements. Actual results could differ from those estimates.
2. FAIR VALUE MEASUREMENTS
A
three-tier hierarchy has been established for fair value measurement based on
the extent of use of observable inputs as compared to unobservable inputs
for disclosure purposes and requires additional disclosures about these
valuations measurements. Inputs refer broadly to the assumptions that market
participants would use in pricing a security. Observable inputs are inputs that
reflect the assumptions market participants would use in pricing the security
developed based on market data obtained from sources independent of the
reporting entity. Unobservable inputs are inputs that reflect the reporting
entitys own assumptions about the assumptions market participants would use in
pricing the security developed based on the best information available in the
circumstances.
The
three-tier hierarchy is summarized as follows:
Level 1
Quoted and Unadjusted Prices in active markets for identical investments.
Level 2
Other Significant Observable Inputs (including quoted prices for similar
investments,
interest rates, prepayment speeds, credit risk, etc.).
Level 3
Significant Unobservable Inputs (including the Funds own assumptions in
determining the
fair value of investments).
The
following is a summary of the inputs used as of September 30, 2010 in valuing
the
Funds
assets:
Investments in Securities at Value*
|
Level 1
Quoted and
Unadjusted
Prices
|
Level 2
Other Significant
Observable Inputs
|
Level 3
Significant
Unobservable
Inputs
|
Total
|
Common
Stocks
|
$ 99,966,786
|
$
-
|
$
-
|
$ 99,966,786
|
Short-Term
Investments
|
2,256,756
|
-
|
-
|
2,256,756
|
TOTAL
|
$ 102,223,542
|
$
-
|
$
-
|
$ 102,223,542
|
*For detailed Industry descriptions, see
accompanying Statement of Investments
All securities of the Fund were valued using
Level 1 inputs during the three months ended September 30, 2010. Thus a
reconciliation of assets in which significant unobservable inputs (Level 3)
were used is not applicable.
The inputs or methodology used for valuing
securities are not necessarily an indication of the risk associated with
investing in those securities.
3. UNREALIZED APPRECIATION AND DEPRECIATION OF INVESTMENTS
(TAX BASIS)
As of September 30, 2010:
Gross
appreciation (excess of value over tax cost)
|
$
5,708,123
|
Gross depreciation (excess of tax cost over value)
|
(6,900,254)
|
Net unrealized appreciation / (depreciation)
|
$
(1,192,131)
|
Cost of investments for income tax purposes
|
$
103,415,673
|
4. LOAN OUTSTANDING
The Fund has a line of credit with The
Bank of New York Mellon (BONY) in which the Fund may borrow up to the lesser
of 15% of the Funds total assets, $15,000,000 or the maximum amount the Fund
is permitted to borrow under the Investment Company Act of 1940. For the period
January 1, 2010 through February 28, 2010 the interest rate reset daily at
overnight Federal Funds Rate plus 1.00%. Effective March 1, 2010, the interest
rate changed to overnight Federal Funds Rate plus 1.25% and the Fund pays an
annual loan facility fee of 0.03%. The borrowings under the BONY loan are
secured by a perfected security interest on all of the Funds assets.
Details
of the loan outstanding are as follows:
|
|
|
|
|
Average for the
|
|
As of
|
Nine Months Ended
|
|
September
30, 2010
|
September 30, 2010
|
Loan outstanding
|
$ 0.00
|
$10,439,441
|
Interest rate
|
N/A
|
1.28 %
|
% of Fund's total assets
|
0.00 %
|
10.20 %
|
Amount of debt per share outstanding
|
$ 0.00
|
$ 0.37
|
Number of shares outstanding (in thousands)
|
28,464
|
28,464 *
|
*Weighted Average
5. SUBSEQUENT EVENT
Effective
December 1, 2010 the line of credit with BONY will be terminated.
On
November 18, 2010, the Funds Board of Directors and the Board of Trustees of
the Westcore Trust announced formal approval to a proposal to reorganize the Fund
into Westcore Blue Chip Fund, a registered open-end fund with a similar
investment objective and strategies. The reorganization must be approved
by the Blue Chip Value Funds shareholders. The Fund has set the close of
business on November 19, 2010 as the record date for the special meeting of
shareholders of the Fund to consider the reorganization. It is anticipated that
proxy materials will be distributed to Blue Chip Value Funds shareholders
later this year or in early 2011 and that the special meeting will be held on
February 8, 2011.
Item 2 - Controls and
Procedures.
(a) The registrant's Principal Executive
Officer and Principal Financial Officer have evaluated the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940) within 90 days of the filing date of this
report and have concluded that the registrant's disclosure controls and
procedures were effective, as of that date.
(b) There was no change in the registrant's
internal control over financial reporting (as defined in Rule 30a-3(d) under
the Investment Company Act of 1940) that occurred during registrant's last
fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 3 Exhibits.
Separate
certifications for the registrant's Principal Executive Officer and Principal
Financial Officer, as required by Rule 30a-2(a) under the Investment Company
Act of 1940, are attached as Ex99.CERT.
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934 and the Investment Company
Act of 1940, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
BLUE
CHIP VALUE FUND, INC.
By:
/s/
Todger Anderson
Todger
Anderson
President
/ Principal Executive Officer
Date: November
29, 2010
Pursuant to the
requirements of the Securities Exchange Act of 1934 and the Investment Company
Act of 1940, this report has been signed below by the following persons on behalf
of the registrant and in the capacities and on the dates indicated.
By:
/s/
Todger Anderson
Todger
Anderson
President
/ Principal Executive Officer
Date: November
29, 2010
By:
/s/
Jasper R. Frontz
Jasper
R. Frontz
Treasurer
/ Principal Financial Officer
Date: November
29, 2010
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