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:
July 1, 2009 - September
30, 2009
Item 1 Schedule of Investments.
Blue Chip Value
Fund, Inc.
|
|
|
STATEMENT OF
INVESTMENTS
|
September 30,
2009 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCKS
- 112.71%
|
|
|
|
|
|
BASIC MATERIALS
-
6.56%
|
|
|
|
|
|
Forestry
& Paper - 5.03%
|
|
|
|
|
|
Ball Corp.
|
41,940
|
|
$ 2,200,539
|
|
$ 2,063,448
|
International
Paper Co.
|
138,600
|
|
2,933,660
|
|
3,081,078
|
|
|
|
|
|
|
Specialty
Chemicals - 1.53%
|
|
|
|
|
|
The Mosaic Co.
|
32,500
|
|
1,706,361
|
|
1,562,275
|
|
|
|
|
|
|
TOTAL BASIC
MATERIALS
|
|
|
6,840,560
|
|
6,706,801
|
CAPITAL GOODS
-
5.17%
|
|
|
|
|
|
Aerospace
& Defense - 2.85%
|
|
|
|
|
|
General Dynamics
Corp.
|
22,100
|
|
1,224,437
|
|
1,427,660
|
Raytheon Co.
|
31,000
|
|
1,465,509
|
|
1,487,070
|
|
|
|
|
|
|
Industrial
Products - 2.32%
|
|
|
|
|
|
ITT Corp.
|
45,500
|
|
2,466,884
|
|
2,372,825
|
|
|
|
|
|
|
TOTAL CAPITAL
GOODS
|
|
|
5,156,830
|
|
5,287,555
|
COMMERCIAL SERVICES
-
5.55%
|
|
|
|
|
|
Business
Products & Services - 2.45%
|
|
|
|
|
|
Quanta Services
Inc.
**
|
113,000
|
|
3,475,189
|
|
2,500,690
|
|
|
|
|
|
|
IT Services -
1.60%
|
|
|
|
|
|
Computer
Sciences Corp.**
|
31,050
|
|
1,503,171
|
|
1,636,646
|
|
|
|
|
|
|
Transaction
Processing - 1.50%
|
|
|
|
|
|
The Western
Union Co.
|
81,000
|
|
1,341,107
|
|
1,532,520
|
|
|
|
|
|
|
TOTAL COMMERCIAL
SERVICES
|
|
|
6,319,467
|
|
5,669,856
|
COMMUNICATIONS
-
9.50%
|
|
|
|
|
|
Networking -
4.89%
|
|
|
|
|
|
Cisco Systems
Inc.**
|
212,500
|
|
5,209,726
|
|
5,002,250
|
|
|
|
|
|
|
Telecomm
Equipment & Solutions - 4.61%
|
|
|
|
|
|
Nokia Corp. -
ADR (Finland)
|
72,230
|
|
1,081,638
|
|
1,056,003
|
QUALCOMM Inc.
|
81,200
|
|
3,667,187
|
|
3,652,376
|
|
|
|
|
|
|
TOTAL
COMMUNICATIONS
|
|
|
9,958,551
|
|
9,710,629
|
CONSUMER CYCLICAL
-
14.16%
|
|
|
|
|
|
Apparel &
Footwear Manufacturers - 1.97%
|
|
|
|
|
|
Nike Inc.
|
31,150
|
|
1,956,597
|
|
2,015,405
|
|
|
|
|
|
|
Clothing
& Accessories - 1.63%
|
|
|
|
|
|
TJX Companies
Inc.
|
44,900
|
|
1,530,735
|
|
1,668,035
|
|
|
|
|
|
|
Department
Stores - 1.72%
|
|
|
|
|
|
Macy's, Inc.
|
95,900
|
|
1,712,131
|
|
1,754,011
|
|
|
|
|
|
|
1
Other
Consumer Services - 2.63%
|
|
|
|
|
|
Expedia Inc.**
|
112,400
|
|
3,017,527
|
|
2,691,980
|
|
|
|
|
|
|
Publishing
& Media - 2.51%
|
|
|
|
|
|
Walt Disney Co.
|
93,500
|
|
2,319,585
|
|
2,567,510
|
|
|
|
|
|
|
Restaurants -
2.00%
|
|
|
|
|
|
Darden
Restaurants Inc.
|
59,940
|
|
1,879,712
|
|
2,045,752
|
|
|
|
|
|
|
Specialty
Retail - 1.70%
|
|
|
|
|
|
Best Buy Co. Inc
|
46,300
|
|
1,992,323
|
|
1,737,176
|
|
|
|
|
|
|
TOTAL CONSUMER
CYCLICAL
|
|
|
14,408,610
|
|
14,479,869
|
CONSUMER STAPLES
-
7.50%
|
|
|
|
|
|
Consumer
Products - 2.72%
|
|
|
|
|
|
Colgate
Palmolive Co.
|
36,400
|
|
2,587,967
|
|
2,776,592
|
|
|
|
|
|
|
Food &
Agricultural Products - 4.78%
|
|
|
|
|
|
Campbell Soup
Co.
|
67,900
|
|
2,476,554
|
|
2,214,898
|
Unilever N.V.
(Netherlands)
|
92,700
|
|
3,284,852
|
|
2,675,322
|
|
|
|
|
|
|
TOTAL CONSUMER
STAPLES
|
|
|
8,349,373
|
|
7,666,812
|
ENERGY
-
14.38%
|
|
|
|
|
|
Exploration
& Production - 7.36%
|
|
|
|
|
|
Occidental
Petroleum Corp.
|
59,180
|
|
4,099,689
|
|
4,639,712
|
XTO Energy Inc.
|
69,837
|
|
2,743,554
|
|
2,885,665
|
|
|
|
|
|
|
Integrated
Oils - 3.70%
|
|
|
|
|
|
Exxon Mobil
Corp.
|
18,000
|
|
1,365,034
|
|
1,234,980
|
Marathon Oil
Corp.
|
79,800
|
|
2,896,214
|
|
2,545,620
|
|
|
|
|
|
|
Oil Services
- 3.32%
|
|
|
|
|
|
Transocean Inc.
(Switzerland)**
|
39,649
|
|
3,471,042
|
|
3,391,179
|
|
|
|
|
|
|
TOTAL ENERGY
|
|
|
14,575,533
|
|
14,697,156
|
INTEREST RATE SENSITIVE
-
14.70%
|
|
|
|
|
|
Integrated
Financial Services - 3.73%
|
|
|
|
|
|
JPMorgan Chase
& Co.
|
87,100
|
|
3,711,599
|
|
3,816,722
|
|
|
|
|
|
|
Money Center
Banks - 2.54%
|
|
|
|
|
|
Bank of America
Corp.
|
153,300
|
|
2,601,103
|
|
2,593,836
|
|
|
|
|
|
|
Property
Casualty Insurance - 3.06%
|
|
|
|
|
|
ACE Ltd. (Switzerland)**
|
38,700
|
|
2,109,636
|
|
2,068,902
|
The Travelers
Cos. Inc.
|
21,500
|
|
1,032,789
|
|
1,058,445
|
|
|
|
|
|
|
Regional
Banks - 2.36%
|
|
|
|
|
|
The Bank of New
York Mellon
|
38,400
|
|
1,257,450
|
|
1,113,216
|
SunTrust Banks
Inc.
|
57,400
|
|
1,197,875
|
|
1,294,370
|
|
|
|
|
|
|
Securities
& Asset Management - 3.01%
|
|
|
|
|
|
Invesco Ltd.
|
56,200
|
|
1,370,566
|
|
1,279,112
|
State Street
Corp.
|
34,200
|
|
2,116,114
|
|
1,798,920
|
|
|
|
|
|
|
TOTAL INTEREST
RATE SENSITIVE
|
|
|
15,397,132
|
|
15,023,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
MEDICAL & HEALTHCARE
-
12.64%
|
|
|
|
|
|
Medical
Technology - 2.56%
|
|
|
|
|
|
Zimmer Holdings
Inc.**
|
49,000
|
|
3,345,140
|
|
2,619,050
|
|
|
|
|
|
|
Pharmaceuticals
- 10.08%
|
|
|
|
|
|
Abbott
Laboratories
|
53,000
|
|
2,802,905
|
|
2,621,910
|
Amgen Inc.**
|
54,500
|
|
3,254,314
|
|
3,282,535
|
Forest
Laboratories, Inc.**
|
80,000
|
|
2,176,616
|
|
2,355,200
|
Wyeth
|
42,100
|
|
1,997,944
|
|
2,045,218
|
|
|
|
|
|
|
TOTAL MEDICAL
& HEALTHCARE
|
|
|
13,576,919
|
|
12,923,913
|
TECHNOLOGY
-
15.50%
|
|
|
|
|
|
Computer
Software - 4.70%
|
|
|
|
|
|
Microsoft Corp.
|
88,300
|
|
2,318,118
|
|
2,286,087
|
Symantec Corp.**
|
153,100
|
|
2,708,511
|
|
2,521,557
|
|
|
|
|
|
|
PC's &
Servers - 5.24%
|
|
|
|
|
|
Dell Inc.**
|
115,500
|
|
1,813,417
|
|
1,762,530
|
International
Business Machines Corp.
|
30,000
|
|
3,535,033
|
|
3,588,300
|
|
|
|
|
|
|
Semiconductors
- 5.56%
|
|
|
|
|
|
Altera Corp.
|
153,900
|
|
2,972,729
|
|
3,156,488
|
Intel Corp.
|
129,100
|
|
2,486,977
|
|
2,526,487
|
|
|
|
|
|
|
TOTAL TECHNOLOGY
|
|
|
15,834,785
|
|
15,841,449
|
TRANSPORTATION
-
3.65%
|
|
|
|
|
|
Railroads -
3.65%
|
|
|
|
|
|
Norfolk Southern
Corp.
|
49,800
|
|
2,622,313
|
|
2,146,878
|
Union Pacific
Corp.
|
27,100
|
|
1,672,103
|
|
1,581,285
|
|
|
|
|
|
|
TOTAL
TRANSPORTATION
|
|
|
4,294,416
|
|
3,728,163
|
UTILITIES
-
3.40%
|
|
|
|
|
|
Independent
Power - 1.29%
|
|
|
|
|
|
PPL Corp.
|
43,450
|
|
1,999,930
|
|
1,318,273
|
|
|
|
|
|
|
Regulated
Electric - 2.11%
|
|
|
|
|
|
Edison
International
|
64,200
|
|
2,046,265
|
|
2,155,836
|
|
|
|
|
|
|
TOTAL UTILITIES
|
|
|
4,046,195
|
|
3,474,109
|
TOTAL COMMON
STOCKS
|
|
|
118,758,371
|
|
115,209,835
|
|
|
|
|
|
|
SHORT TERM
INVESTMENTS - 1.88%
|
|
|
|
|
|
Fidelity
Institutional Money Market Government Portfolio - Class I
|
|
|
(7 Day Yield 0.11%)
(1)
|
1,921,116
|
|
1,921,116
|
|
1,921,116
|
TOTAL SHORT TERM
INVESTMENTS
|
|
|
1,921,116
|
|
1,921,116
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
INVESTMENTS
|
114.59%
|
|
$120,679,487
|
|
$117,130,951
|
Liabilities in
Excess of Other Assets
|
(14.59)%
|
|
|
|
(14,916,113)
|
NET ASSETS
|
100.00%
|
|
|
|
$102,214,838
|
|
|
|
3
|
**
Non-dividend paying stock
(1)
Investments in other funds
are calculated at their respective net asset values as determined by those
funds, in accordance with the Investment Company Act of 1940.
ADR -
American Depositary Receipt
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, 2009 (Unaudited)
|
|
|
Market
|
|
|
|
|
Country
|
Value
|
|
|
|
%
|
United States
|
$ 107,939,545
|
|
|
|
105.60%
|
Switzerland
|
5,460,081
|
|
|
|
5.34%
|
Netherlands
|
2,675,322
|
|
|
|
2.62%
|
Finland
|
1,056,003
|
|
|
|
1.03%
|
Total
Investments
|
$117,130,951
|
|
|
|
114.59%
|
Liabilities in
Excess of Other Assets
|
(14,916,113)
|
|
|
|
(14.59%)
|
Net Assets
|
$102,214,838
|
|
|
|
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.
|
|
|
|
|
|
|
4
BLUE CHIP VALUE FUND
NOTES TO STATEMENT OF INVESTMENTS
September 30, 2009 (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.
5
2. FAS 157 MEASUREMENTS
The
Fund adopted Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 157, Fair Value Measurements (ASC 820), effective January
1, 2008. ASC 820 defines fair value, establishes a three-tier hierarchy to measure
fair value 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 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, 2009 in valuing
the Funds
assets:
Investments in Securities at Value
|
Level 1 - Quoted
Prices
|
Level 2 - Other
Significant
Observable Inputs
|
Level 3 - Significant
Unobservable
Inputs
|
Total
|
Common
Stocks
|
$115,209,835
|
$
|
$
|
$115,209,835
|
Short-Term
Investments
|
1,921,116
|
|
|
1,921,116
|
TOTAL
|
$117,130,951
|
$
|
$
|
$117,130,951
|
All
securities of the Fund were valued using Level 1 inputs during the three months
ended September 30, 2009. Thus, a reconciliation of assets in which significant unobservable
inputs (Level 3) were used in determining fair value 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.
6
3. UNREALIZED APPRECIATION AND DEPRECIATION OF
INVESTMENTS (TAX BASIS)
As of September 30, 2009:
Gross appreciation (excess of value over tax cost)
|
$
|
3,549,063
|
Gross depreciation (excess of tax cost over value)
|
|
(7,401,337)
|
Net unrealized depreciation
|
$
|
(3,852,274)
|
Cost of investments for income tax purposes
|
$
|
120,983,225
|
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. The interest rate resets daily at overnight Federal Funds
Rate plus 1.00% 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
|
|
Period Ended
|
|
September 30,
|
|
September 30,
|
|
2009
|
|
2009
|
Loan outstanding
|
$ 13,190,000
|
|
$ 10,462,546
|
Interest rate
|
1.11%*
|
|
1.13%
|
% of Funds total assets
|
11.25%
|
|
8.92%
|
Amount of debt per share outstanding
|
$
0.46
|
|
$
0.37
|
Number of shares outstanding (in thousands)
|
28,464
|
|
28,464**
|
*Annualized
**Weighted average
5. NEW ACCOUNTING PRONOUNCEMENTS
In
June 2009, the Financial Accounting Standards Board (FASB) issued FASB ASC 105
(formerly FASB Statement 168), Generally Accepted Accounting Principles,
establishing the FASB Accounting Standards CodificationTM (ASC) as the source
of authoritative generally accepted accounting principles (GAAP) to be applied
by nongovernmental entities. FASB ASC 105 is effective for annual and interim
periods ending after September 15, 2009, and the Company has updated its
references to GAAP in this report in accordance with the provisions of this
pronouncement. The implementation of FASB ASC 105 did not have a material
effect on its financial position or results of operation.
7
In
April 2009, the FASB issued FASB ASC 820-10-65 (formerly FASB Staff Position
No. FAS 157-4), Determining Fair Value When the Volume and Level of Activity
for the Asset or Liability Have Significantly Decreased and Identifying
Transactions That Are Not Orderly. This standard applies to all assets and
liabilities within the scope of accounting pronouncements that require or
permit fair value measurements, with certain defined exceptions, and provides
additional guidance for estimating fair value when the volume and level of
activity for the asset or liability have significantly decreased. ASC 820-10-65
is effective for interim reporting periods ending after June 15, 2009. The
implementation of ASC 820-10-65 did not have a material effect on the Companys
financial position or results of operation.
8
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.
9
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
27, 2009
|
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
27, 2009
|
|
|
By:
/s/
Jasper R. Frontz
|
Jasper
R. Frontz
|
Treasurer
/ Principal Financial Officer
|
|
Date: November
27, 2009
|
10
Blue Chip Value Fund, Inc. (NYSE:BLU)
Historical Stock Chart
From Sep 2024 to Oct 2024
Blue Chip Value Fund, Inc. (NYSE:BLU)
Historical Stock Chart
From Oct 2023 to Oct 2024