•
May 5, 2009 --- Shares adjusted to reflect Textron secondary offering
•
March 26, 2009 Quarterly Rebalance --
Force Protection (NASDAQ: FRPT), Herley Industries (NASDAQ: HRLY), and Integral Systems (NASDAQ: ISYS) were added to the Index. ICx Technologies was removed when their liquidity/trading volume fell below acceptable levels.
Force Protection
The firm engages in the manufacture of ballistic and blast protected vehicles primarily used to support armed forces and security personnel.
Herley Industries
For more than 40 years, Herley has been supplying solid, innovative, and sophisticated RF, microwave and millimeter wave components and subsystems to the defense and aerospace industries.
Integral Systems
The firm builds satellite ground systems and equipment for command and control, integration and test, data processing, and simulation in the United States and internationally and serves government and commercial organizations.
•
December 30, 2008 Quarterly Rebalance -- ICx Technologies (NASDAQ: ICXT) and VSE Corporation (NASDAQ: VSEC)
were added to the Index. DRS Technologies and SI International were removed from the index during the quarter when they ceased trading following their acquisitions by Finmeccanica (Italy) and Serco (UK), respectively. Gencorp (NYSE: GY) was removed from the index when its 25-day average price at the time of the review dropped below required levels.
About IC-x Technologies (NASDAQ: ICXT) develops and integrates advanced sensor technologies for homeland security,
force protection, and commercial applications; specifically the detection and identification of chemical, biological,
radiological, nuclear, and explosive threats.
About VSE Corporation (NASDAQ: VSEC) is a professional services company that is ranked among the top 100 defense
contractors, top 10 foreign military sales contractors, and top 50 Navy contractors in the nation. It provides engineering, technical,
management, integrated logistics support, and IT services to all U.S. military services and other government agencies.
•September 30, 2008 Quarterly Rebalance -- NCI Information Systems (NASDAQ: NCIT) and AXSYS Technologies (NASDAQ: AXYS) were added to the Index. NCI, Inc. provides information technology services and solutions to the federal government defense, intelligence, and civilian agencies. Axsys Technologies designs and manufactures precision optical solutions for defense, aerospace, homeland security, and commercial applications; operating in two segments -- the Surveillance Systems Group and the Imaging Systems Group.
•June 30, 2008 Quarterly Rebalance -- MTC Technologies was removed from the index following the completion of their acquisition by BAE..
•March 30, 2008 Quarterly Rebalance -- Force Protection, KVH Industries, and Herley Industries were removed from the index after they failed to meet the rules governing the index.
•December 27, 2007 Quarterly Rebalance -- Textron, Elbit Systems, AAR Corp, and Triumph Group added to the index. Download the Release (pdf)
•December 21, 2007 - EDO removed from the index following closing of its acquisition by ITT.
•Defense Sector Set to Outperform the S&P500 for Eighth Consecutive Year
December 19, 2007 [Washington DC] Compiling a track record that many professional money managers and mutual funds would envy, the defense and homeland security sector is on pace to outperform the S&P500 benchmark for an eighth consecutive year. The benchmark SPADE Defense Index (AMEX:DXS) currently has a year-to-date gain of 21.5%, nearly 20% better than the widely followed S&P500 broad-market index.
During this period, the SPADE Defense Index has outperformed the S&P500 by more than 10% in six of the eight yearly periods and gained better than 19% in four of the previous five years. Since 2000, the SPADE Defense Index has produced a total cumulative gain of 159.8%, as compared to the S&P500’s 10.2%, and the Russell 3000’s 5.9%. The PowerShares Aerospace & Defense ETF (AMEX:PPA), which seeks to replicate the SPADE Defense Index, has seen 2007 inflows of nearly 400% as investors add defense to their core portfolios.
According to Scott Sacknoff, President of SPADE Indexes, “Reporters producing end-of-year market stories should not ignore the returns of a sector that is in the midst of a long investment cycle and whose companies generate nearly 5% of U.S. GDP.
Although much of the gains can be attributed to government spending in the aftermath of 9-11 and the war in Iraq, the defense sector’s positive performance predates the 9-11 attack on the U.S., and trends suggest that growth may continue even after a pullback from Iraq occurs. Notably:
1. The mission to protect and defend the U.S. and its citizens remains a critical goal of government
2. Support for defense among Congress and political leaders remains strong.
3. The recently approved core Department of Defense budget for FY-08 is 10% higher than FY-07.
4. A tremendous need to recapitalize equipment used in Iraq and modernize defense equipment and systems--some of which dates to the Eisenhower Administration.
5. Continued expansion in related business lines such as commercial aircraft.
As always, politics remains the biggest risk to the sector." Mr. Sacknoff concluded stating that, “Current economic issues related to the subprime loan crisis, inflation, and the possibility of recession tend to have less of a direct impact on the defense sector which derives much of its revenues from government budgets. While the sector may move in sympathy with the overall market at times, the underlying factors driving the defense industry remain quite different.”
November 19, 2007 - Textron completed their acquisition of United Industrial Corporation and UIC was removed from the index.
November 16, 2007 - URS Corp shares outstanding were adjusted and updated to account for the approximately 29.4 million shares to acquire Washington Group International (WNG)
September 28, 2007 - September 2007 Quarterly Review
Changes to the Index, effective September 28, 2007, are as follows:
Armor Holdings was removed mid-quarter when it was acquired by BAE Systems.
Additions to the index are GeoEye (NASDQ: GEOY) which provides space imagery of the earth to military, intel, and commercial customers and Ducommon (NYSE: DCO) which manufactures components for military and commercial aircraft and space programs.
In addition, DirecTV and Echostar were removed from the Index. Both companies have invested billions in space systems which in turn helped to support the military space industrial base that builds and launches satellites for government customers. With the bulk of their space infrastructure development complete and in orbit, this segment of the commercial space sector does not have enough overlap with the defense and homeland security market to justify its continued inclusion. The Index continues to have high exposure in the area of space with 17 of the 20 largest firms in the Index maintaining space operations and capabilities.
June 30, 2007 - Armor Holdings removed from Index after acquisition by BAE Systems closes on 30July07.
Changes to the Index, effective June 29, 2007, are as follows:
Safenet was removed mid-quarter when it was acquired by Vector Capital.
March 30, 2007 - March 2007 Quarterly Review
Changes to the Index, effective March 30, 2007, are as follows:
AeroVironment (NASDAQ: AVAV), AV designs, develops, produces, and supports an advanced portfolio of Unmanned Aircraft Systems (UAS) and efficient electric energy systems. The company's small UAS are used extensively by agencies of the U.S. Department of Defense and increasingly by allied military forces to deliver real-time reconnaissance, surveillance, and target acquisition to tactical operating units. .
Force Protection (NASDAQ: FRPT), manufactures ballistic- and blast-protected vehicles, which have been used to support armed forces and security personnel in Iraq, Afghanistan, Kosovo and other hot spots around the globe.
In addition, XM Satellite (NASDAQ: XMSR) and Sirius Satellite Radio (NASDAQ: SIRI) were removed from the Index. By definition, firms providing satellite services are included in the SPADE Defense Index when their operations include the acquisition of space and ground assets (such as satellites, launch vehicles, and monitoring networks) as this helps to ensure the stability of the infrastructure base of the sector -- an area of critical importance to the Department of Defense. Both XM Satellite Radio and Sirius Satellite Radio have evolved to the point where current and future near-term operations do not require a continued, significant investment in infrastructure. As such, these two firms have been removed from the Index.
Presentation Made to NY Society of Security Analysts March 2007 (pdf)
January 2, 2007 - Year End Review
SPADE Defense Index Finishes 2006 up 19.33% - Beats S&P500 for 7th CONSECUTIVE Year
December 29, 2006 - December 2006 Quarterly Review
Changes to the Index, effective December 29, 2006, are as follows:
SAIC (NYSE: SAI), SAIC is a leading provider of scientific, engineering, systems integration and technical services and solutions to all branches of the U.S. military, agencies of the Department of Defense, the intelligence community, the U.S. Department of Homeland Security and other U.S. Government civil agencies, as well as to customers in selected commercial markets. With more than 44,000 employees in over 150 cities worldwide, SAIC engineers and scientists solve complex technical challenges requiring innovative solutions for customers’ mission-critical functions.
Stanley (NYSE: SXE), Stanley is a provider of information technology services and solutions to U.S. defense and federal civilian government agencies. Headquartered in Arlington, Va., Stanley has approximately 2,300 employees at more than 100 locations in the U.S. and worldwide.
Also, during the quarter, Integraph Corporation (NASDQ: INGR) was removed following completion of their acquisition by private equity. Essex (NASD: KEYW) remains in the Index pending the completion of their acquisition by Northrop Grumman. Andrew Corporation was removed from the Index when research determined that the scope of their defense/space antenna operation no longer warranted their inclusion.
- September 27, 2006 -September 2006 Quarterly Review
Changes to the Index, effective September 30, 2006, are as follows:
DynCorp International (NYSE: DCP), DynCorp works behind the scenes to support U.S. military and diplomatic efforts on the front lines. The company provides base operations, drug eradication, law enforcement training, logistics support services, and security services. It also contracts with the U.S. Department of State to train police officers overseas.
Also, during the quarter, PanAmSat was acquired by Intelsat, a private company, and was removed from the Index when the deal closed on 3 July 06. Mid-quarter, the merger of Viisage and Identix led to a change in ticker when the firm was renamed L-1 Identity Solutions (NYSE: ID).
“The SPADE Defense Index aims to cover the broad diversity of activities that is representative of companies involved with defense, homeland security, and space – including not only industrial firms that manufacture aircraft, tanks, ships, and missiles but those involved with current and next generation systems related to network centric warfare and information technology; intelligence, surveillance, and reconnaissance; satellites; border security; and defense systems that protect the lives of our servicemen and servicewomen”, said Scott Sacknoff, Manager of the SPADE Defense Index.
“Companies are required to meet a variety of eligibility criteria for market valuation, trading volume, and be listed on the American, New York, or NASDAQ exchange. The addition of DynCorp provides the Index with added diversification toward the multi-billion operations and technical support side of the defense and homeland security business."
The SPADE Defense Index has outperformed the S&P500 in each of the six years since 2000, as well as in 19 of the past 24 quarters. Powershares Aerospace & Defense Portfolio ETF is up 13.7% since its introduction in October 2005.
The SPADE Defense Index is a modified market capitalization-weighted index that currently has 58 components. Full details on the SPADE Defense Index are available at www.spadeindex.com
June 29, 2006 - June 2006 Quarterly Review
Changes to the Index, effective June 30, 2006, are as follows:
URS Corporation (NYSE: URS), the 24th largest defense contractor and #29 largest contractor to the federal government, is added as a constituent of the Index. URS provides a range of professional planning, design, systems engineering and technical assistance, program and construction management, and operations and maintenance services. It’s EG&G Division is involved in the complete life cycle of defense systems—from concept formulation through production, to operational training and in-service maintenance. The firm also offers homeland security consulting and advisory services including antiterrorism, threat and vulnerability risk assessments, and design force protection and security systems.
Anteon was removed from the Index on June 9, 2006 when the firm’s acquisition by General Dynamics (NYSE: GD) closed.
“The SPADE Defense Index aims to cover the broad diversity of activities that is representative of companies involved with defense, homeland security, and space – including not only industrial firms that manufacture aircraft, tanks, ships, and missiles but those involved with current and next generation systems related to network centric warfare and information technology; intelligence, surveillance, and reconnaissance; satellites; border security; and defense systems that protect the lives of our servicemen and servicewomen”, said Scott Sacknoff, Manager of the SPADE Defense Index.
“Companies are required to meet a variety of eligibility criteria for market valuation, trading volume, and listing on a major U.S. exchange. The addition of URS provides the Index with added diversification toward the multi-billion operations and technical support side of the defense and homeland security business."
The SPADE Defense Index has outperformed the S&P500 in each of the six years since 2000, as well as in 19 of the past 23 quarters. The Powershares Aerospace & Defense Portfolio ETF is up 7.6% since its introduction in October 2005.
April 19, 2006 - SPADE Defense Index Closes Above 2000
An investment benchmark for companies involved with defense, homeland security, and space, the SPADE Defense Index continued a multi-year rally in which it has outperformed the S&P 500 for six consecutive years and in 19 of the last 23 quarters. For the year, the index is up more than 13%. The Index also serves as the basis for the Powershares Aerospace & Defense Portfolio ETF (AMEX: PPA). Since its launch on Oct 25, 2005, the exchange traded fund is up nearly 18%.
According to Scott Sacknoff, Manager of the Index, "Investors are increasingly noticing companies involved in defense, homeland security, and space. Not just for the growth in the Index over the last half decade but as a hedge against world events and other economic factors. As the situation in Iran continues to unfold, the defense sector is an area gaining increasing attention. With CNBC reporting that analysts believe that continued government spending in this area is likely to continue for some time, it would not surprise me to see the index go higher. [Though investors should recognize that past performance is not indicative of future gain]"
Ladish Co. Added to Index as part of March 2006 Quarterly Review
Feb 6, 2006 - Defense Budget Growth Fuels Investment Gains
