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 17
th
Street, 26
th
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:
March 31, 2010
Item 1 Schedule of
Investments.
Blue Chip Value Fund, Inc.
|
|
STATEMENT OF
INVESTMENTS
|
March 31, 2010
(Unaudited)
|
|
|
|
|
|
Market
|
|
|
|
|
|
|
COMMON STOCKS
- 109.08%
|
|
|
|
|
|
BASIC MATERIALS
-
6.86%
|
|
|
|
|
|
Forestry
& Paper - 5.08%
|
|
|
|
|
|
Ball Corp.
|
41,940
|
|
$2,200,538
|
|
$2,238,757
|
International
Paper Co.
|
138,600
|
|
3,349,015
|
|
3,410,946
|
|
|
|
|
|
|
Specialty
Chemicals - 1.78%
|
|
|
|
|
|
The Mosaic Co.
|
32,500
|
|
1,706,361
|
|
1,975,025
|
|
|
|
|
|
|
TOTAL BASIC
MATERIALS
|
|
|
7,255,914
|
|
7,624,728
|
CAPITAL GOODS
-
5.32%
|
|
|
|
|
|
Aerospace
& Defense - 3.13%
|
|
|
|
|
|
General Dynamics
Corp.
|
22,100
|
|
1,444,761
|
|
1,706,120
|
Raytheon Co.
|
31,000
|
|
1,465,509
|
|
1,770,720
|
|
|
|
|
|
|
Industrial
Products - 2.19%
|
|
|
|
|
|
ITT Corp.
|
45,500
|
|
2,500,494
|
|
2,439,255
|
|
|
|
|
|
|
TOTAL CAPITAL
GOODS
|
|
|
5,410,764
|
|
5,916,095
|
COMMERCIAL SERVICES
-
4.70%
|
|
|
|
|
|
Business
Products & Services - 1.95%
|
|
|
|
|
|
Quanta Services
Inc.
**
|
113,000
|
|
3,475,189
|
|
2,165,080
|
|
|
|
|
|
|
IT Services -
1.52%
|
|
|
|
|
|
Computer
Sciences Corp.**
|
31,050
|
|
1,630,333
|
|
1,691,914
|
|
|
|
|
|
|
Transaction
Processing - 1.23%
|
|
|
|
|
|
The Western
Union Co.
|
81,000
|
|
1,341,107
|
|
1,373,760
|
|
|
|
|
|
|
TOTAL COMMERCIAL
SERVICES
|
|
|
6,446,629
|
|
5,230,754
|
COMMUNICATIONS
-
8.16%
|
|
|
|
|
|
Networking -
3.32%
|
|
|
|
|
|
Cisco Systems
Inc.**
|
141,700
|
|
3,444,101
|
|
3,688,451
|
|
|
|
|
|
|
Telecomm
Equipment & Solutions - 4.84%
|
|
|
|
|
|
Nokia Corp. -
ADR (Finland)
|
126,930
|
|
1,842,673
|
|
1,972,492
|
QUALCOMM Inc.
|
81,200
|
|
3,667,187
|
|
3,409,588
|
|
|
|
|
|
|
TOTAL
COMMUNICATIONS
|
|
|
8,953,961
|
|
9,070,531
|
CONSUMER CYCLICAL
-
13.15%
|
|
|
|
|
|
Apparel &
Footwear Manufacturers - 2.06%
|
|
|
|
|
|
Nike Inc.
|
31,150
|
|
1,956,597
|
|
2,289,525
|
|
|
|
|
|
|
Department
Stores - 2.62%
|
|
|
|
|
|
Macy's Inc.
|
133,700
|
|
2,378,598
|
|
2,910,649
|
|
|
|
|
|
|
Other
Consumer Services - 2.52%
|
|
|
|
|
|
Expedia Inc.
|
112,400
|
|
3,017,526
|
|
2,805,504
|
|
|
|
|
|
|
|
Publishing
& Media - 1.73%
|
|
|
|
|
|
Walt Disney Co.
|
55,000
|
|
1,591,931
|
|
1,920,050
|
|
|
|
|
|
|
Restaurants -
1.15%
|
|
|
|
|
|
Darden
Restaurants Inc.
|
28,840
|
|
904,419
|
|
1,284,534
|
|
|
|
|
|
|
Specialty
Retail - 3.07%
|
|
|
|
|
|
Best Buy Co. Inc
|
80,200
|
|
3,222,815
|
|
3,411,708
|
|
|
|
|
|
|
TOTAL CONSUMER
CYCLICAL
|
|
|
13,071,886
|
|
14,621,970
|
CONSUMER STAPLES
-
7.46%
|
|
|
|
|
|
Consumer
Products - 2.79%
|
|
|
|
|
|
Colgate
Palmolive Co.
|
36,400
|
|
2,894,135
|
|
3,103,464
|
|
|
|
|
|
|
Food &
Agricultural Products - 4.67%
|
|
|
|
|
|
Campbell Soup
Co.
|
67,900
|
|
2,476,554
|
|
2,400,265
|
Unilever N.V.
(Netherlands)
|
92,700
|
|
3,284,852
|
|
2,795,832
|
|
|
|
|
|
|
TOTAL CONSUMER
STAPLES
|
|
|
8,655,541
|
|
8,299,561
|
ENERGY
-
11.05%
|
|
|
|
|
|
Exploration
& Production - 3.51%
|
|
|
|
|
|
Occidental
Petroleum Corp.
|
46,180
|
|
3,199,115
|
|
3,904,057
|
|
|
|
|
|
|
Integrated
Oils - 4.23%
|
|
|
|
|
|
Exxon Mobil
Corp.
|
25,500
|
|
1,852,956
|
|
1,707,990
|
Marathon Oil
Corp.
|
94,800
|
|
3,366,930
|
|
2,999,472
|
|
|
|
|
|
|
Oil Services
- 3.31%
|
|
|
|
|
|
Transocean Inc.
(Switzerland)**
|
42,549
|
|
3,933,951
|
|
3,675,383
|
|
|
|
|
|
|
TOTAL ENERGY
|
|
|
12,352,952
|
|
12,286,902
|
INTEREST RATE SENSITIVE
-
15.63%
|
|
|
|
|
|
Money Center
Banks - 5.42%
|
|
|
|
|
|
Bank of America
Corp.
|
194,000
|
|
3,225,368
|
|
3,462,900
|
JPMorgan Chase
& Co.
|
57,200
|
|
2,479,199
|
|
2,559,700
|
|
|
|
|
|
|
Property
Casualty Insurance - 3.12%
|
|
|
|
|
|
ACE Ltd.
(Switzerland)
|
38,700
|
|
2,109,636
|
|
2,024,010
|
The Travelers
Cos. Inc.
|
26,900
|
|
1,295,715
|
|
1,450,986
|
|
|
|
|
|
|
Regional
Banks - 3.12%
|
|
|
|
|
|
Comerica Inc.
|
32,200
|
|
1,138,099
|
|
1,224,888
|
SunTrust Banks
Inc.
|
83,800
|
|
1,843,469
|
|
2,245,002
|
|
|
|
|
|
|
Securities
& Asset Management - 3.97%
|
|
|
|
|
|
The Bank of New
York Mellon Corp.
|
71,400
|
|
2,205,945
|
|
2,204,832
|
Invesco Ltd.
|
100,700
|
|
2,283,742
|
|
2,206,337
|
|
|
|
|
|
|
TOTAL INTEREST
RATE SENSITIVE
|
|
|
16,581,173
|
|
17,378,655
|
MEDICAL & HEALTHCARE
-
12.69%
|
|
|
|
|
|
Medical
Technology - 2.61%
|
|
|
|
|
|
Zimmer Holdings
Inc.**
|
49,000
|
|
3,345,140
|
|
2,900,800
|
|
|
|
|
|
|
Pharmaceuticals
- 10.08%
|
|
|
|
|
|
Abbott
Laboratories
|
53,000
|
|
2,802,905
|
|
2,792,040
|
Amgen Inc.**
|
54,500
|
|
3,254,315
|
|
3,256,920
|
Forest
Laboratories Inc.**
|
80,000
|
|
2,176,616
|
|
2,508,800
|
Pfizer Inc.
|
154,868
|
|
2,774,241
|
|
2,655,986
|
|
|
|
|
|
|
TOTAL MEDICAL
& HEALTHCARE
|
|
|
14,353,217
|
|
14,114,546
|
|
|
|
|
|
|
|
TECHNOLOGY
-
16.71%
|
|
|
|
|
|
Computer
Software - 6.33%
|
|
|
|
|
|
Microsoft Corp.
|
134,200
|
|
3,626,075
|
|
3,928,034
|
Symantec Corp.**
|
184,200
|
|
3,261,615
|
|
3,116,664
|
|
|
|
|
|
|
PC's & Servers
- 6.61%
|
|
|
|
|
|
Dell Inc.**
|
213,700
|
|
3,178,249
|
|
3,207,637
|
International
Business Machines Corp.
|
32,300
|
|
3,849,141
|
|
4,142,475
|
|
|
|
|
|
|
Semiconductors
- 3.77%
|
|
|
|
|
|
Altera Corp.
|
80,700
|
|
1,604,600
|
|
1,961,817
|
Intel Corp.
|
100,000
|
|
1,893,457
|
|
2,226,000
|
|
|
|
|
|
|
TOTAL TECHNOLOGY
|
|
|
17,413,137
|
|
18,582,627
|
TRANSPORTATION
-
4.29%
|
|
|
|
|
|
Railroads -
4.29%
|
|
|
|
|
|
Norfolk Southern
Corp.
|
49,800
|
|
2,622,314
|
|
2,783,322
|
Union Pacific
Corp.
|
27,100
|
|
1,672,102
|
|
1,986,430
|
|
|
|
|
|
|
TOTAL
TRANSPORTATION
|
|
|
4,294,416
|
|
4,769,752
|
UTILITIES
-
3.06%
|
|
|
|
|
|
Independent
Power - 1.08%
|
|
|
|
|
|
PPL Corp.
|
43,450
|
|
1,999,930
|
|
1,204,000
|
|
|
|
|
|
|
Regulated
Electric - 1.98%
|
|
|
|
|
|
Edison
International
|
64,200
|
|
2,046,266
|
|
2,193,714
|
|
|
|
|
|
|
TOTAL UTILITIES
|
|
|
4,046,196
|
|
3,397,714
|
TOTAL COMMON
STOCKS
|
|
|
118,835,786
|
|
121,293,835
|
|
|
|
|
|
|
SHORT TERM
INVESTMENTS - 0.30%
|
|
|
|
|
|
Fidelity
Institutional Money Market Government Portfolio -
Class I (7 Day Yield 0.04%)
|
332,530
|
|
332,530
|
|
332,530
|
TOTAL SHORT TERM
INVESTMENTS
|
|
|
332,530
|
|
332,530
|
|
|
|
|
|
|
TOTAL
INVESTMENTS
|
109.38%
|
|
$119,168,316
|
|
$121,626,365
|
Liabilities in
Excess of Other Assets
|
(9.38)%
|
|
|
|
(10,427,287)
|
NET ASSETS
|
100.00%
|
|
|
|
$111,199,078
|
|
** Non-dividend paying stock
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 March 31,
2010 (Unaudited)
|
|
|
|
|
Market
|
|
|
Country
|
|
|
Value
|
|
%
|
United States
|
|
|
$111,158,648
|
|
99.96%
|
Switzerland
|
|
|
5,699,393
|
|
5.13%
|
Netherlands
|
|
|
2,795,832
|
|
2.52%
|
Finland
|
|
|
1,972,492
|
|
1.77%
|
Total
Investments
|
|
|
$121,626,365
|
|
109.38%
|
Liabilities in
Excess of Other Assets
|
|
|
(10,427,287)
|
|
(9.38%)
|
Net Assets
|
|
|
$111,199,078
|
|
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
March 31, 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 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 March 31, 2010 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
|
$121,293,835
|
$
|
$
|
$121,293,835
|
Short-Term
Investments
|
332,530
|
|
|
332,530
|
TOTAL
|
$121,626,365
|
$
|
$
|
$121,626,365
|
*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 March 31, 2010. 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.
3. UNREALIZED APPRECIATION AND DEPRECIATION OF INVESTMENTS
(TAX BASIS)
As of March 31, 2010:
Gross appreciation (excess of value over tax cost)
|
$
|
8,283,477
|
Gross depreciation (excess of tax cost over value)
|
|
(5,825,428)
|
Net unrealized
appreciation
|
$
|
2,458,049
|
Cost of investments for income tax purposes
|
$
|
119,168,316
|
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
|
Period Ended
|
|
March 31,
|
March 31,
|
|
2010
|
2010
|
Loan outstanding
|
$ 10,425,000
|
$ 11,117,889
|
Interest rate
|
1.41%*
|
1.22%
|
% of Fund's total assets
|
8.56%
|
9.13%
|
Amount of debt per share outstanding
|
$
0.37
|
$
0.39
|
Number of shares outstanding (in thousands)
|
28,464
|
28,464**
|
*Annualized
**Weighted average
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: May
28, 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: May
28, 2010
|
|
|
By:
/s/
Jasper R. Frontz
|
Jasper
R. Frontz
|
Treasurer
/ Principal Financial Officer
|
|
Date: May
28, 2010
|
Blue Chip Value Fund, Inc. (NYSE:BLU)
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