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Pentonomics

Raise the Inflation Target and Put a Date on It!

Raise the Inflation Target and Put a Date on It! That's the direction some high-profile economist and former members on the FOMC want to go.

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Pento Portfolio Strategies
Separate Managed Accounts (SMA)
Global Dividend Portfolio

To inquire about our managed accounts please call:
1-732-772-9500

PORTFOLIO AS OF March 31, 2017

PPS-SMA Global Dividend Portfolio
Is an actively managed product that seeks to maximize returns by writing covered calls on globally diversified high-dividend yielding equities and ETFs

KEY BENEFITS:

  • Adaptive, Dynamic management of Michael's investment philosophy, along with that of his investment team.
  • Investment Policy Committee is specifically focused on identifying investments that offer a high-dividend yield and have low pay-out ratios. In addition, equities and ETFs that are selected for inclusion should illustrate a history of raising their dividend.
  • Portfolio is designed to maximize returns by augmenting the dividend yield through covered call writing. Portfolio avoids investing in sovereign debt, and instead concentrates on owning an internationally diversified basket of high-yielding equities and ETFs.
  • Global fundamental economic and market analysis provided by Michael Pento.
 

STRATEGY OVERVIEW

The Global Yield-Enhanced Dividend Portfolio attempts to provide capital appreciation, dividends and increased yield from selling covered call options. Holdings are selected from a global universe of ETFs and individual stocks. The fund eschews investments in sovereign and corporate debt due to global interest rate suppression and the lack of growth opportunities.

INVESTMENT PROCESS

The Investment Policy Committee convenes weekly where investment themes and strategies are presented and approved by Michael Pento (Committee Chairman). Performance reviews are then conducted on each asset class and individual investment. The Committee discusses the performance of all holdings and determines the investment's ability to maintain the dividend. Call writing opportunities are then evaluated.

Portfolio Selection Criteria

Country criteria selections are biased towards stability of government, strength of currency, low debt to GDP ratio, high relative growth rate and a current account surplus. Industry criteria is vetted from proprietary models created by Michael Pento for the purpose of determining specific industries that are positioned to prosper in specific macroeconomic environments. Individual securities are then selected within the favored industries that display the potential to raise their dividends. Equities selected should also have sufficient cash-flow coverage, good valuation and a strong balance sheets.

PORTFOLIO COMPOSITION

The PPS Global Yield-Enhanced Dividend Portfolio will hold ETFs, ADRs, and Individual Equities of both U.S. and International Corporations. The Portfolio will only invest in international investments that trade with the added benefits and liquidity of trading as American Depositary Receipts. Our options strategy seeks to take advantage of those holdings that offer higher beta and liquidity in order to maximize the yield-enhancing strategy associated with covered call writing.

PORTFOLIO REBALANCING AND TURNOVER

Changes to our portfolio are a dynamic process; there is no set schedule for rebalancing. Portfolio rebalancing occurs whenever the model and our investment committee dictate its necessity. PPS also focuses on technical price levels relative to their trading ranges and utilizes an active risk management strategy that seeks to lock in gains and limit losses.

http://www.pentoport.com

TO OPEN AN ACCOUNT

Please call
1-732-772-9500 and ask about our man-aged accounts.


INVESTMENT TEAM

Michael Pento
Chairman
Investment
Policy Committee


24 years investment experience. Portfolio creator and consultant to Delta/Claymore's commodity portfolios that raised in excess of $3 billion and were distributed through Claymore / Guggenheim's sales network.

Justine Coleman



Research and Technical Assistant

22 years experience in the Financial Reporting Industry.

PERFORMANCE

Past investment performance is not indicative of future results. Advisory services offered through Pento Portfolio Strategies, LLC. a Registered Investment Adviser. Holdings represent the largest holdings in the Pento Portfolio Strategies Global Dividend Portfolio – SMA as of 3/31/2017 These holdings are subject to change at any time without notice and individual account holdings may vary. The specific securities do not represent all the securities PPS Portfo-lio- SMA has purchased, sold, or recommended for clients over the past year. The reader should not assume that investments in securities listed above were or will be profitable. Sector diversification represents sector allocations in PPS Portfolio – SMA as of 3/31/2017. This document has been prepared for the intended recipient only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. All securities involve varying amounts of risk, and their values will fluc-tuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in U.S. Dollars.

Carefully consider the risks and special considerations associated with investing in the PPS Global Dividend Portfolio– SMA. You may lose money by invest-ing in the Model SMA Account.




Pento Portfolio Strategies
Separate Managed Accounts (SMA)
Inflation/Deflation Dynamic Portfolio "SM"

To inquire about our managed accounts please call:
1-732-772-9500

PORTFOLIO AS OF March 31, 2017

PENTO PORTFOLIO STRATEGIES - INFLATION/DEFLATION DYNAMIC PORTFOLIO
Is an actively managed product that provides complete access to Michael Pento's 26 years' worth of industry experience, direct account supervision and proprietary investment model.

KEY BENEFITS:

  • Adaptive, dynamic management of Michael's investment philosophy, along with that of his investment team.
  • Investment Policy Committee specifically focused on strong dollar (deflation) / weaker dollar (inflation) correlations and how that paradigm interfaces with a uniquely identified universe of asset classes.
  • Goal is to provide an improved hedge against inflation by factoring into the investment strategy cyclical periods of deflation.
  • Attempts to provide inflation protection with lower beta than static portfolios that ignore changes in USD intrinsic valuations.
 

STRATEGY OVERVIEW

The Pento Portfolio Strategies' Model SMA attempts to provide an improved hedging strategy against inflation, while also offering protection against cyclical periods of deflation. We utilize top-down proprietary-macro analysis to position the portfolio in broad asset classes, depending on our view of prevailing inflationary and deflationary forces. We then use our technical database to select the best possible investments.

INVESTMENT PROCESS

The Investment Policy Committee convenes weekly where investment themes and strategies are presented and approved by Michael Pento (Committee Chairman). Performance reviews are then conducted on each asset class and individual investment.

Sample Model Components

PPS's proprietary investment model uses various metrics to determine the macroeconomic environment in relation to the inflation/deflation dynamic.

Household and Public Sector Debt Levels
-Private Banks' Balance Sheet Condition
-Interest Expense on Sovereign Debt
-Trade and Current Account Deficits
-Commercial and Industrial Loan Growth
-Commodity and Equity Prices
-Fed and Global C.B. Monetary Policies
-Monetary Aggregate Growth Rates
-USD Strength/Weakness Against Major Trading Partners
-Direction of Real Interest Rates
-Treasury and Breakeven Spreads

Pento Portfolio Strategies Model uses a weighted approach regarding its stance on the US dollar's trend, as well as the direction of real interest rates. Based on this outlook we will assign weightings to inflation/deflation hedges. The investable universe includes domestic stocks, foreign stocks, commodity proxies, domestic and foreign bonds, currency hedges and short-market strategies; including options and inverse ETFs. PPS does not utilize margin.

PORTFOLIO REBALANCING AND TURNOVER

Portfolio rebalancing occurs whenever the model dictates it is necessary to move along the inflation/deflation spectrum and/or when the weightings have moved more than 5% outside of the recommended allocation. PPS also focuses on technical price levels relative to trading ranges and utilizes an active risk management strategy that seeks to lock in gains and limit losses.

http://www.pentoport.com

TO OPEN AN ACCOUNT

Please call
1-732-772-9500

INVESTMENT TEAM

Michael Pento
Chairman
Investment
Policy Committee


26 years investment experience. President and Founder of Pento Portfolio Strategies LLC established 2012.

Justine Coleman



Research and Technical Assistant

24 years experience in the Financial Services Industry.

PERFORMANCE

The Inflation/Deflation Dynamic Portfolio and Inflation/Deflation Model "SM"are the proprietary property of Pento Portfolio Strategies; all rights reserved.
Past investment performance is not indicative of future results. Advisory services offered through Pento Portfolio Strategies, LLC. a Registered Investment Adviser.
Holdings represent the largest holdings in the Pento Portfolio Strategies Model – SMA Managed Account as of 03/31/2017. These holdings are subject to change at any time without notice and individual account holdings may vary. The specific securities do not represent all the securities PPS Model - SMA has purchased, sold, or recommended for clients over the past year. The reader should not assume that investments in securities listed above were or will be profitable. Sector diversification represents sector allocations in PPS Model – SMA as of 03/31/2017. These sector allocations are subject to change at any time without notice and individual account sector allocations may vary. This document has been prepared for the intended recipient only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. All securities involve varying amounts of risk, and their values will fluctuate.

Carefully consider the risks and special considerations associated with investing in the Model – SMA Managed Account. You may lose money by investing in the Model Portfolio.

 

 


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Investments are not FDIC insured, are not guaranteed by a bank/financial institution, and are subject to risks, including possible loss of the principal invested.
Securities offered through Charles Schwab Institutional Brokerage.
© 2012-2016 Pento Portfolio Strategies, LLC A Registered Investment Adviser, All Rights Reserved, Member FINRA

Pento Portfolio Strategies | 291 Rt. 34 North | Colts Neck, NJ 07722