Securities Portfolio Performance as of September 30, 2013

Securities portfolio:  As of September 30, 2013, M1’s securities portfolio was valued at $920,377, approximately 14.22% of total assets. The portfolio is comprised of real estate investment trusts allocating 14% in residential, 7% in office and industrial, 5% in healthcare, 25% in mortgage, 33% in retail, 6% in student housing, 4% in shopping centers, and 6% in Vanguard REIT.  Our three largest holdings were in the following REITs:  Realty Income, Annaly Capital, and National Retail Properties, Inc.  During 3Q13, we did not add, reduce, eliminate or initiate any new positions. Our securities portfolio performance during the third quarter was -14.06%; since inception our securities portfolio has returned -2.76%.

Securities Portfolio Performance as of June 30, 2013

As of June 30, 2013, M1’s securities portfolio was valued at $984,222, approximately 15.05% of total assets. The portfolio is comprised of real estate investment trusts allocating 15% in residential, 7% in office and industrial, 5% in healthcare, 24% in mortgage, 33% in retail, 6% in student housing, 4% in shopping centers, and 6% in Vanguard REIT.  Our three largest holdings were in the following REITs:  Realty Income, Annaly Capital, and National Retail Properties, Inc.  During 2Q13, we added to our positions in American Capital Agency, Annaly Capital, Taubman Centers, Healthcare, Realty Income and Vanguard REIT.  We reduced our holdings in Hovnanian and Mack-Cli.  We initiated no new positions. We eliminated our positions in Newcastle, Two Harbors, UDR, Crexus, Toll Brothers, and Pulte Homes. Our securities portfolio performance during the second quarter was -9.70%; since inception our securities portfolio has returned 10.09%.

Securities Portfolio Performance as of March 31, 2013

As of March 31, 2013, M1’s securities portfolio was valued at $1,041,926, approximately 21.46% of total assets. The portfolio is comprised of real estate investment trusts allocating 21% in residential, 11% in office and industrial, 2% in healthcare, 26% in mortgage, 30% in retail, 7% in student housing, and 3% in Vanguard REIT.  Our three largest holdings were in the following REITs:  Realty Income, National Retail Properties, Inc. and American Capital Agency Corp.  During the 1Q13, we added to our positions in American Campus Communities, American Capital Agency, Boston Properties, Home Properties, National Retail Properties, and Realty Income.  We reduced our holdings in KB Homes.  We initiated new positions in Crexus (CXS), Healthcare REIT (HCN), Hovnanian (HOV), Newcastle (NCT), Pulte Homes (PHM), PennyMac (PMT), and Two Harbors (TWO). We eliminated our positions in Kimco, Washington REIT, and DR Horton. Our securities portfolio performance during the first quarter was 10.85%; since inception our securities portfolio has returned 23.16%.

 

Securities Portfolio Performance as of December 31, 2012

As of December 31, 2012, M1’s securities portfolio was valued at $784,681, approximately 16.36% of total assets. The portfolio is comprised of real estate investment trusts allocating 25% in residential, 16% in office and industrial, 20% in mortgage, 28% in retail, 7% in student housing, and 4% in Vanguard REIT.  Our three largest holdings were in the following REITs:  Realty Income, National Retail and Annaly Capital.  During the 4Q12, we added to our positions in American Campus Communities, D.R. Horton, Mack-Cali, Home Properties, Annaly, Realty Income and Vanguard REIT.  We reduced our holdings in UDR.  We initiated new positions in American Capital, Boston Properties, KB Homes, Kimco, National Retail, and Toll Brothers. Our securities portfolio performance during the fourth quarter was -.77%; since inception our securities portfolio has returned 11.88%.

Securities Portfolio Performance as of September 30, 2012

As of September 30, 2012, M1’s securities portfolio was valued at $519,146, approximately 14.1% of total assets. The portfolio is comprised of real estate investment trusts and mutual funds, allocating 22% in residential, 10% in office and industrial, 12% in mortgage, 18% in retail, 8% in student housing, and 30% in CGM Realty fund.  Our three largest holdings were in the following mutual fund/REITs:  CGM Realty fund, Realty Income, and Annaly Capital.  During the 3Q12, we added to our positions in Home Properties, Annaly Capital, American Campus Communities, and Realty Income.

Our securities portfolio performance during the third quarter was 0.26%; since inception our securities portfolio has returned 26.75%.

Securities Portfolio Performance as of June 30 , 2012

As of June 30, 2012, M1’s securities portfolio was valued at $471,076, approximately 12.3% of total assets. The portfolio is comprised of real estate investment trusts and mutual funds, allocating 22% in residential, 10% in office and industrial, 12% in mortgage, 14% in retail, 8% in student housing, and 34% in CGM Realty fund. Our three largest holdings were in the following mutual fund/REITs: CGM Realty fund, Realty Income, and Annaly Capital. During the 2Q, we added to our positions in Home Properties and Annaly Capital and initiated new positions in D.R. Horton and Vanguard REIT. Our securities portfolio performance during the second quarter was 3.72%; since inception our securities portfolio has returned 26.82%.

Securities Portfolio Performance as of March 31, 2012

As of March 31, 2012, M1’s securities portfolio was valued at $423,744, approximately 12.3% of total assets. The portfolio is comprised of real estate investment trusts and mutual funds, allocating 17% in residential REITs, 11% in office and industrial REITs, 11% in mortgage REITs, 15% in retail REITs, 8% in student housing REITs, and 38% in CGM Realty fund. Our three largest holdings were in the following mutual fund/REITs: CGM Realty fund (CGMRX), Realty Income (O), and Annaly Capital (NLY). During the 1Q, we added to our positions in American Campus (ACC), Home Properties (HME), and Realty Income (O).

Our securities portfolio performance during the first quarter was 11.42%; since inception our securities portfolio has returned 33.30%.