Income Strategy:
Pendulum Asset Management, LLC (“Pendulum”) is a Registered Investment Advisor and is an investment management firm built to capitalize on what we believe to be underfollowed and underappreciated equity and preferred securities.
Pendulum’s Income Strategy’s objective is to invest in what we believe to be undervalued high-yielding equity and preferred securities with the goal of achieving an alternative income stream for our clientele.
For more information on our Income Strategy, please click HERE.
SECTOR | PORTFOLIO ALLOCATION, as of 11/7/2024* |
|---|---|
Mortgage REITs | 45.57% |
Preferred Stock | 30.62% |
REITs | 6.16% |
Insurance | 6.04% |
BDCs (Business Development Companies) | 5.95% |
Energy | 5.29% |
Money Market/Treasury Bills | 0.37% |
*Allocation for the Income Strategy above is as of 11/7/2024. Portfolio weights are determined by using the weighted average actual assets across client portfolios. Your experience and/or allocation may vary based on your individual circumstances. The Firm provides no assurance that it will be able to achieve similar results in comparable situations. Any statement herein about the quality of an asset class is the opinion of the author and is subject to change without notice. For additional information, including fees and services, send for our disclosure statement as set forth on Form ADV using the contact information herein. Please read the disclosure statement carefully before you invest or send money |
Income + Value Strategy:
For more information on our Income + Value Strategy, please click HERE.
SECTOR | PORTFOLIO ALLOCATION, as of 11/7/2024* |
|---|---|
Mortgage REITs | 33.39% |
Insurance | 29.59% |
Preferred Stock | 26.61% |
REITs | 5.45% |
Energy | 4.59% |
Money Market/Treasury Bills | 0.36% |
*Allocation for the Income + Value Strategy above is as of 11/7/2024. Portfolio weights are determined by using the weighted average actual assets across client portfolios. Your experience and/or allocation may vary based on your individual circumstances. The Firm provides no assurance that it will be able to achieve similar results in comparable situations. Any statement herein about the quality of an asset class is the opinion of the author and is subject to change without notice. For additional information, including fees and services, send for our disclosure statement as set forth on Form ADV using the contact information herein. Please read the disclosure statement carefully before you invest or send money |
Performance (As of 9/30/2024)
Strategy Total Returns, net of fees | 3Q 2024 | YTD | Inception 1 |
|---|---|---|---|
Income | 6.15% | 9.25% | 9.25% |
Income + Value | 4.38% | 6.01% | 6.01% |
Index2 | 9.24% | 10.93% / 13.78%3 | 10.93% / 13.78%3 |
1. Inception dates for Income and Income + Value are 3/1/2024 and 5/1/2024, respectively
2. MVIS US Mortgage REIT Index, Total Return Net
3. YTD and Inception returns for the Benchmark when compared to Income and Income + Value, respectively
Pendulum may also be able to create a customizable solution depending on your situation. Please reach out for further details.
Disclaimer
This article contains general information that is not suitable for everyone and was prepared for informational purposes only. Nothing contained herein should not be construed as a solicitation to buy or sell any security or as an offer to provide investment advice. Pendulum Asset Management, LLC (“PAM”) is a registered investment adviser. For additional information about PAM, including its services and fees, send for the firm’s disclosure brochure using the contact information contained herein or visit advisorinfo.sec.gov. This article contains past specific securities recommendations for illustrative purpose only. PAM makes no assurances, nor should it be assumed, that recommendations made in the future will be profitable or will equal the performance of the securities included in this presentation. Due to various factors including changing market conditions, such recommendations may no longer be appropriate; nor should any past recommendation be taken as personalized investment advice.
Any reference to a market index is included for illustrative purposes only as it is not possible to directly invest in an index. The figures for each index reflect the reinvestment of dividends, as applicable, but do not reflect the deduction of any fees or expenses, or the deduction of an investment management fee, the incurrence of which would reduce returns. It should not be assumed that your account performance or the volatility of any securities held in your account will correspond directly to any comparative benchmark index. This article contains certain forward-looking statements that indicate future possibilities. Due to known and unknown risks, other uncertainties and factors, actual results may differ materially. As such, there is no guarantee that any views and opinions expressed herein will
come to pass.
Investing involves risk of loss including loss of principal. Past investment performance is not a guarantee or predictor of future investment performance.
PAM does not provide tax or legal advice. You should contact your tax advisor, accountant and/or attorney before making any decisions with tax or legal implications. All information is provided solely for convenience purposes and all users thereof should be guided accordingly.
Performance data currently includes all clients invested per the strategy they have chosen. The Firm has the discretion to exclude portfolios from the performance data set if the invested assets are not within each strategy’s targeted holdings. For example, if a client wants to be in the Income Strategy, but is currently only invested in index ETFs, we would exclude that portfolio from the performance data set until it is fully invested to the strategy. Additionally, certain portfolios include restrictions on investment strategy, including but not limited to limiting the treasury bill/money market allocation. At the Firm’s discretion, as long as the client’s core equity and preferred investments align with the intended strategy, accounts with investment restrictions are included in the performance data. Returns presented are time-weighted total returns that have been adjusted for cash flows and include the reinvestment of income. Composite results have been aggregated monthly and weighted based on beginning-of-month portfolio valuations.
Past performance is not a guarantee of future results.
Performance includes the reinvestment of dividends, interest and other earnings. Certain investments may not have dividend or interest reinvested. Reinvestment into securities and/or treasuries and money market instruments are up to the Firm’s discretion. Net returns reflect the deduction of management fees. Management fees are dependent on client assets under management, or with the benefit of breakpoints.
The benchmark used for both strategies is the MVIS US Mortgage REIT Index. This index tracks the performance of the largest and more liquid companies in the US Mortgage REITS Industry. This is a modified market cap-weighted index, and only includes REITs that derive at least 50% of their revenues from Mortgage, such as REITs that are primarily engaged in the purchase or service of commercial or residential mortgage loans or mortgage related securities. MVMORT covers at least 90% of the investable universe.
The volatility of the index represented in this material may be materially different from that of client portfolios. The index has been selected as client portfolios have a significant allocation to the Mortgage REIT sector. The underlying exposures, and specifically the securities in the selected benchmark index or indices, may vary substantially from that of the strategy presented.
