The Pence Growth and Income portfolio is designed for long-term capital growth, pursuing this objective by primarily investing in US domestic companies (minimum 60%) and incorporating fixed income ETFs (up to 30%). Its core strategy revolves around disruptive technologies and places paramount importance on consumer behavior, which guides company selection.
The firm’s investment process is rooted in identifying Big Knowable Themes, ranging from evolving consumer behavior to transformative technological innovations. The Pence Growth and Income portfolio specifically targets long-term capital appreciation and income by selecting companies distinguished by their robust financial health, innovative prowess, and sustainable competitive advantages. This portfolio typically comprises 55 to 75 individual stock holdings and ETFs.
- Standard allocations in this composite are generally up to 70% equity and up to 30% fixed income and/or cash.
- The portfolio utilizes between 50 and 70 holdings varying from 1% to 5% weighting with market cap over $10 billion and projected sales over $1 billion.
- Fixed income selections are typically in the form of an ETF, varying in duration and credit quality profile depending on market conditions.
- During periods of volatility, higher cash positions may be held to limit downside.
