9-30-14 Income & Growth Portfolio

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Leeb Capital Management, Inc.
501 Fifth Avenue Suite 802, New York, N.Y. 10017 • 800.524.LEEB (5332) • www.leebcapital.com
Income & Growth Portfolio
9.30.2014
Leeb Capital Management
• Employs a disciplined investment process which seeks to
produce superior returns over a complete market cycle.
• Provides service tailored to individual client requirements
as well as sector specific investment strategies.
• Offers regular communications from our investment and
client service professionals regarding our current market
outlook and individual portfolio holdings.
Investment Philosophy and Approach
Income & Growth approach focuses primarily on:
• Securities that provide a combination of income and the
potential for long term capital appreciation.
• Healthy businesses on the basis of market share, lever-
age, dividend coverage ratios, business stability and low
vulnerability to event risk or regulatory concerns.
• Businesses that have a steady dividend payout and are
positioned to increase the dividend over time.
• Diversifying portfolios across sectors to limit overall
portfolio volalitily.
• High quality fixed income investments.
Investment Process
LCM believes that superior long-term results are
best achieved by selecting investments that, through
a combination of balance sheet strength and high
payout potential, have an investment value that is not
reflected in current prices and offer dividend protection.
Strict sell discipline minimizes commissions and fees
while maximizing the collection of dividends and
interest. Positions are sold when business fundamentals
deteriorate, or when price appreciation has unbalanced
the overall portfolio.
Investment
Universe
250-300
Stocks
Watch
List
150
Stocks
Portfolio
25-35
Positions
Macro-Economic
Sector Analysis
Fundamental
Research
Screening
Process
Portfolio
Construction
Portfolio Characteristics LCM S&P 500
Forward P/E Ratio 21 17
Yield 4.0% 2.0%
Wtd Average Market Cap $96.6 bil $128.5 bil
Top Ten Equity Holdings
Enterprise Products Partners LP 4.8%
Wells Fargo 4.1%
Calamos 3.9%
Dominion Resources 3.6%
Cisco Systems 3.5%
Verizon 3.4%
Chevron 3.3%
Union Pacific 3.1%
AT&T 3.1%
Phillips 66 3.1%
Portfolio characteristics and holdings are based on a model portfolio
and are supplemental information to the compliant presentation.
+112.7%
+146.6%
+103.6%
$2,600
$2,300
$2,100
$1,900
$1,700
$1,500
$1,300
$1,100
$900
$700
Leeb I&G Composite, Gross of Fees
Leeb I&G Composite, Net of Fees
Blended Benchmark
4
11/99 9/01 9/03 9/05 9/07 9/09 9/11 9/13 9/14
Growth of $1000 Since Inception (11/30/99—9/30/14 )
Annualized Returns as of 9/30/14
1 3 5 10 Since
year years years years Inception
14.5% 11.4% 11.1% 7.2% 6.3%
13.4% 10.3% 10.0% 6.1% 5.2%
15.7% 17.7% 12.9% 7.5% 4.9%
Leeb I&G
Composite, Gross
Leeb I&G
Composite, Net
Blended
Benchmark 4
Business Fixed Income Company Management
Analysis Analysis Analysis Analysis
• Dominant
market position
• Companies
largely immune
to competitive
threats
• Barriers to
entry
• Diversified
Holdings
• Steady
yield
• Preference
is given to
investment
grade
• Overall financial
strength
• Above average
dividend paying
ability
• Profitability
• Strategic vision
• Stability
• Reputation
• Experience
• Track record
Fundamental Research
LCM’s fundamental research process seeks to identify
companies with the following characteristics:
Leeb Capital Management (LCM) Performance Results: Income & Growth Composite December 1, 1999 through September 30, 2014
Composite
Number Composite Assets Total
Total Return Total Return Blended Composite Benchmark of Composite Assets as % of Firm Assets
Year (Gross) (Net of Fees) Benchmark
4
3-Year St Dev
13
3-Year St Dev
13
Accounts Dispersion (US$ mil) Firm assets (US$ mil)
1999
11
2.7% 2.6% 4.3% - - < 5 - $0.7 1.0% $67.0
2000 17.8% 16.7% -4.2% - - 6 N/A $3.4 3.9% $87.8
2001 -4.4% -5.4% -6.7% - - 7 N/A $5.1 5.4% $95.1
2002 -15.1% -15.9% -14.6% 10.8% 13.9% < 5 N/A $2.0 3.0% $67.1
2003 17.4% 16.3% 22.4% 9.6% 13.4% < 5 N/A $2.1 2.5% $83.8
2004 12.4% 11.3% 9.3% 9.2% 11.0% 13 N/A $9.5 8.7% $109.1
2005 8.2% 7.2% 4.3% 5.9% 6.9% 21 2.4% $14.0 9.4% $148.2
2006 15.6% 14.5% 12.8% 5.8% 5.3% 24 4.0% $16.8 11.3% $148.0
2007 7.0% 6.0% 5.9% 6.0% 5.8% 28 4.5% $21.3 13.6% $157.1
2008 -22.6% -23.4% -27.8% 10.9% 11.7% 16 3.7% $11.4 10.3% $110.4
2009 14.9% 13.8% 21.3% 13.1% 15.2% 18 1.7% $12.1 10.3% $117.3
2010 16.8% 15.7% 13.3% 14.2% 16.8% 23 2.1% $15.9 13.3% $119.4
2011 5.6% 4.6% 3.8% 11.1% 14.2% 25 1.1% $17.7 17.3% $102.1
2012 5.1% 4.1% 13.1% 8.6% 11.2% 31 1.3% $21.2 22.3% $95.2
2013 10.8% 9.7% 22.8% 7.4% 8.9% 28 1.1% $18.9 21.1% $89.7
2014
12
11.1% 10.3% 7.4 % - - 26 - $19.1 22.3% $85.9
Leeb Capital Management (“LCM”) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared this report in com-
pliance with the GIPS Standards. LCM has been independently verified for the periods 4/1/99 through 9/30/14. Verification assesses whether (1) the firm
has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are
designed to calculate and present performance in compliance with the GIPS standards. The Income & Growth Composite has been examined for the peri-
ods 12/1/99 - 9/30/14. The verification and performance examination reports are available upon request.
Notes:
1.) Leeb Capital Management (“LCM”) is a registered investment advisor with the Securities and Exchange Commission. Prior to 2001, the firm was
doing business as Money Growth Institute. LCM provides equity money management to retail and institutional investors. LCM’s Income & Growth
Composite (“Composite”) represents all fee-paying accounts with assets greater than $250,000 that are managed in accordance with LCM’s Income
& Growth investment strategy. LCM’s Income & Growth Composite combines income generating securities, including common equity, preferred
stocks, convertible bonds, and fixed income investments. Portfolios are managed to generate current income and with the objective of preserving
capital. Portfolios are subject to minimal security turnover. Objectives of the portfolio are to minimize: inflation risk through current income, credit
risk by focusing the majority of holdings in investment grade securities and market risk by diversifying between various income sectors i.e. REITs,
utilities and preferred stocks. The composite contains both taxable and tax-exempt portfolios.
2.) The Composite was created as of November 30, 1999 which coincides with the inception of this strategy. A complete list and description of LCM’s
composites is available upon request. For the periods from April 1, 1999 through September 30, 2007, LCM has been verified by Ashland Partners
and Company LLP. For the period October 1, 2007 through September 30, 2014, LCM has been verified by ACA Verification Services, LLC. A copy of
the verification report is available upon request. Additional information regarding the firm’s policies and procedures for valuing portfolios, calculating
and reporting performance results as well as preparing compliant presentations are available upon request.
3.) Prior to July 1, 2006 the Composite was known as the Pure Income Composite.
4.) The composite returns are compared to a custom blended benchmark. This static blended benchmark consists of 75% the S&P 500 Total Return Index
and 25% Bond Index. From inception through 6/30/08, the DJ Lehman Bond Index was the bond index used. This benchmark was discontinued in
3Q08. LCM has replaced it with the ML US Corporate, Government, & Mortgage Bond Index.* Benchmarks are selected based upon similarity to the
investment style of our composites and accepted norms within the industry.
5.) Valuations are computed and performance is reported in U.S. dollars.
6.) Composite returns are calculated using the aggregate method. This methodology has been applied consistently for all periods. Other methods may
produce different results.
7.) Composite returns are presented gross and net of all management fees, transaction fees, and other expenses and include the reinvestment of all
dividends and income. Gross returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of
the account. Net of fee performance was calculated using the highest management fee charged to clients in accordance with LCM’s Income & Growth
strategy fee schedule which is stated as: 1.0% on all assets.
8.) Quarterly and annual rates of return for the portfolio are computed by compounding the monthly rates of return over the applicable number of
months.
9.) LCM utilizes neither leverage nor derivative instruments as a material component of its investment strategies.
10.) Composite dispersion is calculated using the asset-weighted standard deviation of all portfolios that were included in the composite for the entire
year. N/A - Information that is not statistically significant due to an insufficient number of portfolios in the composite for the entire year.
11.) Performance periods of less then 12 months are not annualized. 1999 results are for the period of Dec. 1, 1999 through Dec. 31, 1999.
12.) LCM defines a significant cash flow as an external flow of cash or securities (capital additions or withdrawals) that is client initiated. An external flow
of at least 10% of the portfolio market value is considered significant. This policy became effective July 1, 2002. Year 2014 results are for the period of
Jan. 1, 2014 through September 30, 2014.
13.) The 3-year annualized standard deviation measures variability of the (gross) composite and the benchmark returns over the preceding 36-month
period.
14.) Actual performance of client accounts may differ substantially.
15.) Past performance is not indicative of future results.
The content presented in this document is for informational purposes and should not be taken as a recommendation to purchase any individual securities.
Index returns shown in the performance comparisons where provided by Standard & Poor’s, Dow Jones, Lehman Brothers, Merrill Lynch, and Bloomberg.
All of this information comes from sources believed by LCM to be reliable. LCM, however, cannot guarantee the accuracy of the comparative returns and
therefore shall not be held liable for inaccurate information obtained from data providers.
*Source Merrill Lynch, used with permission. Merrill Lynch is licensing the Merrill Lynch indices “as is,” makes no warranties regarding same, does not
guarantee the quality, accuracy and/or completeness of the Merrill Lynch indices or any data included therein or derived therefrom, and assumes no lia-
bility in connection with their use.