Leeb Capital Management (“LCM”) is an SEC-Registered Investment Advisory Firm. Before 2001, the firm conducted business as the 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 managed following LCM’s Income & Growth investment strategy. Our firm'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 to preserve capital and are subject to minimal security turnover. The objectives of the portfolio aim to minimize inflation risk through current income, credit risk by focusing on the majority of investment-grade securities, and market risk by diversifying between various income sectors such as REITs, utilities, and preferred stocks. The composite contains both taxable and tax-exempt portfolios.
The Composite was created on November 30, 1999, coinciding with this strategy's inception. For the periods from April 1, 1999, through September 30, 2007, LCM was verified by Ashland Partners and Company LLP. From October 1, 2007, through December 31, 2016, LCM was verified by ACA Performance Services, LLC. From 2017 through 2022, LCM was confirmed by The Spaulding Group. A complete list of composite descriptions, along with additional information regarding the firm’s policies and procedures for valuing portfolios, calculating and reporting performance results, and preparing GIPS reports, are all available upon request.
The composite returns are compared to a custom blended benchmark. Before 1/1/20, this static custom blended benchmark comprised 75% of 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 Q3 of 2008 due to uncertainty regarding 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 on 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 as gross and net. Gross returns are presented as gross fees (net of only transaction costs) and include reinvestment of dividends 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 per LCM’s Income & Growth strategy fee schedule: a 1% flat fee based on AUM.
The portfolio's quarterly and annual rates of return 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 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 included in the composite for the entire year. Distribution is calculated as gross of fees. N/A – Information is not statistically significant due to insufficient portfolios in the composite for the 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 the 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 the 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 meant for informational purposes only and should not be used as a recommendation to buy any individual securities. Index returns shown in the performance comparisons were provided by Standard & Poor’s, Dow Jones, Lehman Brothers, Merrill Lynch, Orion Advisor, and Bloomberg. All of this information comes from sources our investment committee deems 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.