PENCE Human Behavior Core Strategy Portfolio UIT

The Human Behavior Core Strategy Portfolio seeks to achieve its objective by investing in a portfolio of stocks of companies selected by Pence Capital Management, LLC that derive a substantial portion of their revenues from sales directly to U.S. consumers selected using an investment strategy based on human behavior. The trust is structured as a Regulated Investment Company (RIC).

Industry Breakdown

As of 10/10/2022 and may vary thereafter.

Key points to consider

The portfolio tries to map Personal Consumption Expenditure (“PCE”) into Maslow’s hierarchy of needs.

PCE is the primary measure of consumer spending and provides clues on what U.S. consumers buy and how consumer behavior changes over time

As of September 2019, PCE stood at $14.7 trillion, larger than China and growing at a steady pace, averaging 4.4% over the past 5 years.

The portfolio aims to capture both the psychology of consumer and the fear of investor.

Maslow’s hierarchy of needs helps us understand consumer psychology.

Stocks upside/downside capture helps us avoid investor’s fear of volatility.

Companies with strong fundamentals and relatively lower levels of volatility can have potential to be more stable in downturns and more profitable in periods of growth.

The portfolio selects companies that directly serve U.S. consumers while acknowledging investor fear of volatility by selecting companies with (historically) limited downside.

How to invest

Pence Capital Management develops investment strategies for distributors and model portfolios for advisors. To invest in Pence Capital Management Strategies, please contact your broker or advisor.

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