LOM Stable Income Fund
Investment Objective
The investment objective of the Fund is to generate premium returns over a full market cycle and protect the purchasing power and principal of the Fund while providing high levels of current income through the purchase of attractively valued, higher‐yielding securities.
Fact Sheet
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Management Style
The Fund intends to achieve its Investment Objective by investing in global securities which typically have the following characteristics:
- Pay regular dividend and/or interest payments;
- Achieve higher than average yields;
- Provide individual security and overall portfolio dividend yield (or yield to worst in the case of fixed income products) above the S&P 500 average dividend yield; and
- Provide sufficient cash flows to the Fund to cover dividend payments made by the Fund.
The Fund will typically hold about 30 securities, although this may fluctuate depending on market conditions.
Uninvested cash may be invested by the Fund in the LOM Money Market Fund Ltd.
Dividends and interest received in respect of a security investment may be reinvested in the same security, invested into other securities, or held as cash depending on market conditions.
The benchmark for the Fund's performance is 50% Dow Jones Global Dividend Select Index and 50% S&P Preferred Stock Index.
Dividends and interest payments to the Fund may be subject to a withholding tax at source.
Securities can be purchased in any currency. The Fund may enter into back-to-back currency borrowing or utilize derivatives such as forwards, futures, options and other derivatives to hedge against currency fluctuations, but there can be no assurance that such hedging transactions will be effective or beneficial.
Fund Performance
| Year to Date Return | 4.50% |
| Dividend |
$0.03 Monthly* |
| Dividend Yield | 3.45% |
| 1 Month Return |
-0.19% |
| Return Since Inception |
6.70% |
| * dividend reviewed annually |
|
Year
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
Oct
|
Nov
|
Dec
| Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2012 | 3.10% | 2.14% | -0.19% | 4.50% | |||||||||
|
2011
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-1.30%
|
-2.53%
|
5.51%
|
-5.42%
|
4.58%
|
1.60%
|
Top 10 Holdings
|
Issuer
| Yield | Weighting |
|---|---|---|
| ISHARES S&P PREF STK INDX FN |
5.8% | 19.5% |
| ISHARES DJ SELECT DIV |
3.6% | 12.3% |
| FIRST TRUST DJ | 1.75% | 6.5% |
| WISDOM TREE EMG MKTS |
1.45% | 3.0% |
| ING GROEP NV |
8.59% | 2.4% |
| CITIGROUP CAPITAL | 8.50% | 2.3% |
| JPM CHASE CAPITAL |
7.78% | 2.3% |
| AVIVA PLC |
11.75% |
2.2% |
| QWEST CORP | 6.04% | 2.2% |
| DBCONT CAPITAL TRUST | 7.47% |
2.1% |
Current Monthly Strategy Allocation
Benchmark Analytics**
| Benchmark | S&P 500 | |
|---|---|---|
| Raw Beta |
0.60%
|
1.07%
|
| Current Yield |
5.51%
|
n/a
|
| 1 Year Total Return |
4.31%
|
4.60%
|
| 2 Year Total Return |
5.97%
|
25.52%
|
| 3 Year Total Return |
89.10%
|
68.27% |
| 90 Day Volatility |
10.78%
|
12.25%
|
| 360 Day Total Volatility |
16.38%
|
20.77%
|
| ** Use of the Benchmark is not indicative of future returns and should only be considered as potential performance due to the lack of LOM Stable Income Fund operating history. | ||
|
|
