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.
The Composite was created on November 30, 1999 which coincides with the inception of this strategy. A complete list of composite descriptions is available upon request. For the periods from April 1, 1999 through September 30, 2007, LCM was verified by Ashland Partners and Company LLP. For the period October 1, 2007 through December 31, 2016, LCM was verified by ACA Performance Services, LLC. From 2017 through 2022, LCM was verified by The Spaulding Group. 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 GIPS reports are available upon request
The composite returns are compared to a custom blended benchmark. Before 1/1/20, this static custom blended benchmark consisted 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 due to uncertainty about the future of the benchmark after Lehman Brothers declared bankruptcy. LCM replaced it with the ML US Corporate, Government, & Mortgage Bond Index. Starting 1/1/21, the blended benchmark was changed to 90% S&P 500 Dividend Aristocrat Index and 10% 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. The benchmark is rebalanced monthly.
Valuations are computed and performance is reported in U.S. dollars.
Composite returns are presented gross and net. Gross returns are presented gross of fees (net of only transaction costs) and includes reinvestment of dividend and income when applicable. Net return reduces the gross return by investment advisory fees. It was calculated using the highest management fee charged to clients in accordance with LCM’s Income & Growth strategy fee schedule: 1.0% flat fee based on AUM.
Quarterly and annual rates of return for the portfolio are computed by compounding the monthly rates of return over the applicable number of months.
LCM utilizes neither leverage nor derivative instruments as a material component of its investment strategies.
From composite inception through December 31, 2017, composite dispersion was calculated using the asset-weighted standard deviation of all portfolios that were included in the composite for the entire year. From January 1, 2018 through December 31, 2022, composite dispersion is calculated using the equally-weighted standard deviation of all portfolios that were included in the composite for the entire year. Dispersion is calculated gross of fees. N/A – Information is not statistically significant due to an insufficient number of portfolios in the composite for the entire year.
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.
The 3-year annualized standard deviation measures variability of the (gross) composite and the benchmark returns over the preceding 36-month period.
Actual performance of client accounts may differ substantially.
Past performance is not indicative of future results.
The Benchmark Returns are not covered by the report of independent verifiers.
GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
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, Orion Advisor, 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.