Catalyst Funds
Rational Funds
Strategy Shares
Income Sectors Shine
November proved to be a strong month for income-focused investments, with all sectors delivering positive returns despite market volatility. Leading the charge were MLPs, which surged 12.60%, benefiting from a favorable energy environment and rising commodity prices. This sector’s robust income generation continues to attract investors seeking yield in a stable energy backdrop. REITs followed far behind with a 3.54% return. While interest rates remain a challenge, strong demand for both commercial and residential properties kept the sector resilient. Similarly, Dividend Equities posted a strong 5.40%, benefiting from the broader market’s continued strength and providing investors with a balance of income and growth. Utilities delivered 3.78%, as their defensive nature remained appealing to investors seeking stability. With ongoing market uncertainty, the reliable income stream from utilities remains attractive. Growth & Income strategies also performed well, returning 5.84%, reflecting a mix of steady income and equity exposure. High Yield Bonds generated a modest 1.67%, as investor appetite for riskier assets remained cautious in the face of tighter credit spreads. Covered Calls posted 4.31%, as the strategy took advantage of solid equity performance while generating additional income through options.
In fixed income, Preferreds saw a modest 0.80% return, weighed down by ongoing interest rate pressures. However, Build America Bonds and MBS performed decently with returns of 1.66% and 1.51%, respectively, supported by favorable market conditions in infrastructure and mortgages. Investment Grade Corporate Bonds saw a moderate 1.26%, while Active Fixed Income strategies posted 1.34%, as managers adjusted exposures to navigate rate changes. On the equity front, Large Cap Equity returned 5.57%, reflecting strong corporate earnings.
For the Nasdaq HANDL™ Indexes, November was a very solid month highlighting the strength of a diversified basket. For the month of November:
- Nasdaq 5HANDL™ Index: 3.78%
- Nasdaq 7HANDL™ Index: 4.81% (1.3x leveraged)
- Nasdaq 10HANDL™ Index: 7.24% (2.0x leveraged)
Overall, November demonstrated the resilience of income-focused investments across various sectors, offering solid returns in a dynamic market environment. As interest rates continue to adjust, investors are finding attractive opportunities in sectors that blend stability and income, reinforcing the value of diversification within portfolios.
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