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
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(Address of principal executive offices) (Zip code)
Michael P. Malloy
Drinker Biddle & Reath LLP
One Logan Square
18th & Cherry Streets
Philadelphia, Pennsylvania 19103-6996
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(Name and address of agent for service)
Registrant's Telephone Number, including Area Code: (800) 624-4190
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Date of fiscal year end: December 31
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Date of reporting period: September 30
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Item 1 - Schedule of Investments.
BLUE CHIP VALUE FUND, INC.
STATEMENT OF INVESTMENTS
September 30, 2004 (Unaudited)
Market
Shares Cost Value
----- ------------ -----------
COMMON STOCKS 104.47%
BASIC MATERIALS 2.63%
Forestry & Paper 2.63%
Bowater Inc. 99,100 $ 4,676,588 $ 3,784,629
TOTAL BASIC MATERIALS 4,676,588 3,784,629
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CAPITAL GOODS 7.94%
Aerospace & Defense 3.82%
General Dynamics Corp. 28,600 2,227,919 2,920,060
Raytheon Co. 67,800 2,340,069 2,575,044
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4,567,988 5,495,104
Industrial Products 4.12%
Parker Hannifin Corp. 100,500 4,847,686 5,915,430
TOTAL CAPITAL GOODS 9,415,674 11,410,534
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COMMERCIAL SERVICES 3.19%
IT Services 3.19%
Computer Sciences Corp.* 97,300 3,942,978 4,582,830
TOTAL COMMERCIAL SERVICES 3,942,978 4,582,830
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COMMUNICATIONS 2.66%
Telecomm Service Providers 2.66%
ALLTEL Corp. 69,600 3,507,230 3,821,736
TOTAL COMMUNICATIONS 3,507,230 3,821,736
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CONSUMER CYCLICAL 15.29%
Clothing & Accessories 2.77%
TJX Companies Inc. 180,300 2,785,187 3,973,812
Consumer Services 1.04%
Cendant Corp. 69,300 1,597,365 1,496,880
General Merchandise 3.09%
Target Corp. + 98,200 3,396,619 4,443,550
Hotels & Gaming 2.04%
Starwood Hotels &
Resorts Worldwide Inc. 63,200 1,831,324 2,933,744
Publishing & Media 5.04%
Dow Jones & Company Inc. 50,700 2,714,743 2,058,927
Viacom Inc. - Class B 61,300 2,993,401 2,057,228
Walt Disney Co. 138,800 2,967,594 3,129,940
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8,675,738 7,246,095
Restaurants 1.31%
Darden Restaurants Inc. 80,600 2,001,891 1,879,592
TOTAL CONSUMER CYCLICAL 20,288,124 21,973,673
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Market
Shares Cost Value
----- ------------ -----------
CONSUMER STAPLES 8.27%
Food & Agricultural Products 6.55%
Bunge Ltd. 64,500 $ 1,553,092 $ 2,578,710
Kraft Foods Inc. + 87,100 2,741,790 2,762,812
Tyson Foods Inc. 254,000 2,988,679 4,069,080
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7,283,561 9,410,602
Home Products 1.72%
Colgate Palmolive Co. 54,700 3,171,659 2,471,346
TOTAL CONSUMER STAPLES 10,455,220 11,881,948
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ENERGY 9.31%
Integrated Oils 7.26%
Marathon Oil Corp. 83,900 3,039,749 3,463,392
Occidental Petroleum Corp. 88,200 4,010,819 4,933,026
Suncor Energy Inc. 63,500 1,621,187 2,032,635
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8,671,755 10,429,053
Oil Services 2.05%
Transocean Inc.* 82,400 1,704,136 2,948,272
TOTAL ENERGY 10,375,891 13,377,325
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FINANCIALS 26.77%
Insurance & Real Estate Brokers 2.30%
Willis Group Holdings Ltd. 88,500 2,558,672 3,309,900
Integrated Financial Services 3.64%
Citigroup Inc. + 118,700 5,155,075 5,237,044
Property Casualty Insurance 6.76%
Allstate Corp. 71,900 2,605,775 3,450,481
AMBAC Financial Group Inc. 19,100 1,060,642 1,527,045
American International Group + 40,600 2,615,595 2,760,394
Radian Group Inc. 42,600 1,855,940 1,969,398
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8,137,952 9,707,318
Regional Banks 1.59%
US Bancorp 78,900 2,264,067 2,280,210
Securities & Asset Management 7.05%
Goldman Sachs Group Inc. + 38,600 3,560,484 3,599,064
Lehman Brothers Holdings Inc. 37,100 2,426,560 2,957,612
Merrill Lynch & Company Inc. + 71,900 4,031,147 3,574,868
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10,018,191 10,131,544
Specialty Finance 4.22%
Freddie Mac + 47,300 2,985,116 3,085,852
MBNA Corp. 118,300 2,982,458 2,981,160
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5,967,574 6,067,012
Thrifts 1.21%
Washington Mutual Inc. 44,300 1,689,646 1,731,244
TOTAL FINANCIALS 35,791,177 38,464,272
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Market
Shares Cost Value
----- ------------ -----------
MEDICAL - HEALTHCARE 17.62%
Drugs & Healthcare Products 1.76%
Medtronic Inc. 48,800 $ 2,419,130 $ 2,532,720
Healthcare Services 3.21%
Pacificare Health Systems Inc.* 125,900 4,737,238 4,620,530
Pharmaceuticals 12.65%
Abbott Laboratories + 73,500 3,011,705 3,113,460
Amgen Inc.* 85,200 5,025,543 4,829,136
Barr Pharmaceuticals Inc.* 63,000 3,064,654 2,610,090
Pfizer Inc. + 166,260 4,713,657 5,087,556
Teva Pharmaceutical
Industries Ltd. 97,600 3,179,199 2,532,720
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18,994,758 18,172,962
TOTAL MEDICAL - HEALTHCARE 26,151,126 25,326,212
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TECHNOLOGY 10.79%
Computer Software 5.95%
Microsoft Corp. + 172,400 5,240,231 4,766,860
Verisign Inc.* 190,400 3,180,807 3,785,152
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8,421,038 8,552,012
Semiconductors 4.84%
Altera Corp.* 191,400 4,351,041 3,745,698
Intel Corp.+ 159,900 4,015,283 3,207,594
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8,366,324 6,953,292
TOTAL TECHNOLOGY 16,787,362 15,505,304
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TOTAL COMMON STOCKS 141,391,370 150,128,463
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SHORT-TERM INVESTMENTS 0.31%
Goldman Sachs Financial
Square Prime Obligations
Fund - FST Shares 446,702 446,702
TOTAL SHORT-TERM INVESTMENTS 446,702 446,702
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TOTAL INVESTMENTS 104.78% 141,838,072 150,575,165
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Liabilities in Excess of
Other Assets -4.78% (6,867,347)
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NET ASSETS 100.00% $143,707,818
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* Denotes non-income producing security.
+ A portion of the shares held in this security are pledged as collateral for
the borrowings under the loan agreement as described in Note 3.
See accompanying notes to Statement of Investments.
BLUE CHIP VALUE FUND, INC.
Notes to Statement of Investments
September 30, 2004 (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.
Investment Transactions
Investment transactions are accounted for on the date the investments are
purchased or sold (trade date). Effective July 1, 2004, the Fund changed its
accounting method for realized gains and losses from investment transactions and
unrealized appreciation and depreciation of investment from a "first-in,
first-out" basis to a "specific identification" basis. This change was for both
financial statement and federal income tax purposes.
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. UNREALIZED APPRECIATION AND DEPRECIATION OF INVESTMENTS (TAX BASIS)
As of September 30, 2004:
Gross appreciation (excess of value over tax cost) $ 16,382,750
Gross depreciation (excess of tax cost over value) $ (8,053,288)
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Net unrealized appreciation $ 8,329,462
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Cost of investments for income tax purposes $ 142,193,463
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3. LOAN OUTSTANDING
On November 12, 2003 an agreement with Custodial Trust Company of Bear Stearns
was reached, in which the Fund may borrow from the Custodial Trust Company an
aggregate amount of up to the lesser of $15,000,000 or the maximum amount the
Fund is permitted to borrow under the Investment Company Act of 1940. The
borrowings under the Custodial Trust Company loan are secured by pledging a
portion of the Fund's portfolio securities as collateral. The initial value of
the portfolio securities pledged must equal twice the amount of the loan
outstanding. As of September 30, 2004, the Fund had a loan payable in the amount
of $6,825,000 with a current daily annualized interest rate of 2.8325%, which
represents 30-day LIBOR plus 1.00%. The amount of the loan represented 4.53% of
the Fund's total assets as of September 30, 2004.
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
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Todger Anderson
President / Principal
Executive Officer
Date: November 29, 2004
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, 2004
By: /s/ Jasper R. Frontz
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Jasper R. Frontz
Treasurer / Principal
Financial Officer
Date: November 29, 2004