Monthly Needs Portfolio

The NAMCOA® Monthly Needs Portfolio™ is a actively managed equity long portfolio with an objective of providing long term capital appreciation and dividends.

The Portfolio adheres to a simple strategy of investing in a weighted portfolio of 25 stocks consisting of sectors that the average consumer spends monies on each month. The Portfolio was up 4.49% for the second quarter, ahead of the S&P 500 benchmark by 19 basis points which was up 4.30% for the quarter.

Click here for most recent NAMCOA 06-30-2019 1st Q 2019

For more information, contact Walter Hester Senior Portfolio Manager .

Mutual Fund vs Managed Portfolio?

Mutual Funds and Managed Portfolios may have similar financial objectives for an investor, but are really very different. Managed Portfolios are known as “SMA”s or “Separately Managed Accounts”.

With a Managed Account or SMA, it is disclosed to the investor what you own, letting you know in real time, each of the securities in your account, versus investing in a mutual fund, where you own units or shares without
owning the securities outright, and being a little behind in knowing what the fund actually owns. This causes problems with portfolio overlap, and other conflicts with an investors objectives.

But there is much more to discover and think about. Click here to read more.

Happy Fathers Day!

Wishing a Happy Father’s Day to the extraordinary dads who provide support, sacrifice and love every day for their families. 

We’re thankful for these incredible men who truly make a house a home, filling our spaces with fond memories and laughter day in and day out. We celebrate dads everywhere today from all of us at NAMCOA. 

Monthly Needs Portfolio

The NAMCOA® Monthly Needs Portfolio™ is a actively managed equity long portfolio with an objective of providing long term capital appreciation and dividends, has provided gross returns exceeding 10% in the last 12 months.  Click here to view portfolio results

The Portfolio adheres to a simple strategy of investing in a weighted portfolio of 25 stocks consisting of sectors that the average consumer spends monies on each month. Even though the portfolio has some companies with retail distribution, the portfolio is not weighted to that sector and is not focused on the retail end, but is mainly made up of manufactures, processors, and service providers for each one of the sectors selected. The Portfolio focuses primarily on U.S large-cap value stocks, but can invest in mid to small cap equities and foreign companies as well.

For more information, contact Walter Hester whester@namcoa.com

Self-storage Construction Increasing

Private investors continue to place assets in Self-storage for income and capital appreciation, new units are absorbed quickly to meet growing consumer demand. Today 9.4% of all households use a self storage space, for a variety of reasons.

Below is Self-storage Sector Snapshot

U.S. self-storage sector snapshotData
Annual industry revenue$38 billion
Number of storage facilities (range)44,000-52,000
Total rentable self-storage space2.3 billion square feet
Self-storage space per person7.06 square feet
Percentage of households that rent a self-storage unit9.4 percent
Average monthly cost for a self-storage unit$91.14


Number of self-storage facilities in the U.S.

Between 44,149 (Self-Storage Almanac, 2018) and 52,000 (Self Storage Association, 2018). Sources vary depending on definition and methodology.

Industry ownership is fragmented, with 18% of facilities owned by the six largest public companies, 8% owned by the next top 100 operators (minus the REITs), and 74% owned by small operators. (Self-Storage Almanac, 2018)

Largest self-storage operators (publicly traded) in the U.S. (by annual revenue)

  1. Public Storage: $2.51 billion (2017)
  2. Extra Space Storage: $1.1 billion (2017)
  3. CubeSmart: $558.94 million (2017)
  4. Life Storage: $529.75 million (2017)
  5. U-Haul: $286.89 million (fiscal 2017 – self-storage revenue only)
  6. National Storage Affiliates Trust: $268.13 million (2017)

Data from most recently reviewed company earnings reports.

Largest self-storage operators in the U.S. (by number of facilities, owned or managed)

  1. Public Storage: 2,386
  2. Extra Space Storage: 1,483
  3. U-Haul: 1,482
  4. CubeSmart: 936
  5. Life Storage: 675
  6. National Storage Affiliates Trust: 533

Data from most recently reviewed company earnings reports. U-Haul number reported by MiniCo Storage Almanac 2018.

A sensible approach to lower risk

The emergence of real estate in securitized form (REITs), evolution of modern financial theory and the development of more sophisticated multi-factor models has made it easier for investors to decide on the suitability and allocation of real estate as an alternative investment in their portfolios.

As the number and size of REITs in the United States continue to grow and the list of countries adopting REIT or REIT-like structure expands, we believe investors should consider how (not if) to incorporate real estate into their portfolios. For more information read

The 1031 Roadmap

Advantages of a 1031 exchange include many things aside from the tax benefits. Investors can consolidate, diversify, move markets, or increase income potential on their current investment property. dst 2 black-01

Some people choose to do a 1031 exchange to acquire more income. For example, they can exchange vacant land for commercial or residential real estate. The investor is able to increase income potential by exchanging a property that is not generating any revenue, such as land, into real estate that has greater income potential like commercial and residential real estate.

Another advantage of doing a 1031 exchange is consolidation. Depending on the investor’s situation, they may not want to manage multiple properties. They can exchange their properties into one larger investment property that is easier to manage. Others are tired of managing properties and of being a landlord altogether. These investors can exchange from a residential or commercial property into a more manageable and less time consuming piece of land.

Some investors are looking to diversify. With a 1031 exchange they can exchange one property for multiple property types. For example, an investor can exchange their residential investment property into a commercial, residential, and vacant piece of land. This is one of the most attractive of the advantages of a 1031 exchange!

A 1031 exchange is great for investors who have multiple properties in other states or for investors who are moving markets. Instead of traveling from state to state to manage multiple properties, investors can exchange the out of state real estate into property that’s in one state. If the investor is moving markets, for example from one state to another, they can exchange their investment property in the current states for an investment property in another state.

Every situation is unique when considering the advantages of a 1031 exchange, and it is always advised that the taxpayer consult with his or her tax advisors before making any decisions!

For more information, visit www.DST.investments.