PENCE Balanced (60|40)

The Pence Growth portfolio seeks long-term growth of capital. It aims to achieve this objective through a portfolio consisting of a minimum allocation of 50% US domestic companies and up to 40% allocation to fixed income. These companies are relevant to Pence’s investment theme of disruptive technologies and puts consumer behavior at the center of the process.

Pence’s investment process begins with looking at Big Knowable Themes from changing consumer behavior to technological innovations. The portfolio aims to achieve long-term capital appreciation with income by identifying and investing in companies that demonstrate robust financial health, innovative capabilities, and competitive advantages. The portfolio utilizes between 50 and 70 individual companies.

Long-term growth investment approach

  • Standard allocations in this composite are generally up to 60% equity and up to 40% 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.

Asset Allocation

As of 12/31/2024

Gross Returns

As of Dec 31, 2024

Top Holdings

Name
Portfolio %
Walmart
3.76
Amazon
2.88
Visa
2.85
Mastercard
2.85
Alerian MLP
2.83
Broadcom
2.69
Alphabet
2.64
Apple
2.50
AT&T
2.43
Meta
2.32

Characteristics

Portfolio
Standard Deviation % (260d)
6.77
Weighted Average Capital ($B)
528
Median Market Cap ($B)
314
% Top 10 Holdings
27.76
Dividend Yield %
3.02
Price/Earning (12mo Trailing)
24.48
Price/Earning (12mo Forward)
20.52
Price/Book
6.46
Price/Sales (12mo Trailing)
2.95
Price/Cash Flow (12mo Trailing)
17.09
Debt/Equity Ratio %
112.14
Total Holdings
57
Long-term Earnings Growth (%)
11.33
Long-term Sales Growth (%)
7.25

% of Portfolio in Cap Range

Portfolio %
> $50 Billion
97.30
$10-50 Billion
2.70
<$10 Billion
0.0

S&P/ MSCI GICS

Portfolio %
Information Technology
25.28
Consumer Staples
13.82
Communication Services
13.70
Health Care
11.52
Financials
10.41
Industrials
9.71
Consumer Discretionary
9.22
Energy
6.34

As of 12/31/2024

Disclosure

The following composite benchmark is used for the Balanced Model

36% – S&P 500 INDEX
12% – Russell 2000 Index
8% – MSCI EAFE Net Total Return Index
4% – MSCI Emerging Markets Net Total Return Index
35% – Bloomberg US Aggregate Bond Index
5% – FTSE 3 Month Treasury Bill

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Strategies

Our investment strategies seek to capitalize on thematic, long-term investment trends built on a close study of human behavior.
Ubiquitous Strategy
Ubiquitous Strategy Finds investment opportunity in stocks of “ubiquitous” companies—those whose services have become part of our daily lives and whose position at the choke point in the supply chain gives them pricing power.
Content Leaders Strategy
Content Leaders Strategy Seeks above-average capital appreciation by investing in stocks of U.S. companies that are dominant in the media content arena, including television producers, filmmakers, content libraries, broadcast channels and delivery platforms.
Digital World Leaders Strategy
Digital World Leaders Strategy Finds mega-platform providers that have the resources to evolve, transform, and acquire as technology advances and consumer demand shifts.
Building America Strategy
Building America Strategy Invests in stocks of companies that can benefit from “Building America” through infrastructure projects including civil construction and engineering, and the sale of construction materials.
Human Behavior Strategy
Human Behavior Strategy Focuses on companies that derive the majority of their revenue through sales to U.S. consumers, fulfilling the different levels of human need in a variety of income categories.
PENCE Transformers Index (Ticker: TRFM)
PENCE Transformers Index (Ticker: TRFM) Seeks above-average total return by investing in stocks of global companies that benefit from shifts in consumer behavior and technological innovation.

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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