Controls exposure to one manager across different funds.
MCI · MPV · BGH · BBDCOriginal AI portfolio · Income Factory Cashflow 2026 Q4 Fund · 5-year lookback
What if we invested $1,000,000 5 years ago?
Apply this model portfolio’s allocations at the start, reinvest each holding’s distributions, and hold without rebalancing or adding money.
View model portfolio & allocationsOct 11, 2021 – Oct 9, 2026Latest available completed session · Cash-until-launch scenario
This exact portfolio could not be bought in full 5 years ago. $150,000 (15.00%) stays in cash at 0% until the newer funds have a market price: PBDC — $60,000 invested Sep 30, 2022; PAXS — $40,000 invested Jan 27, 2022; FSCO — $30,000 invested Nov 14, 2022; RLTY — $20,000 invested Feb 24, 2022. The result below includes this cash assumption.
Your $1,000,000 becomes$1,335,837Portfolio value at the end
Total gain / loss+$335,837After reinvesting distributions
5-year total return+33.58%Gain / loss ÷ $1,000,000
Same investment in S&P 500$1,914,988SPY · +91.50% · same dates
This plan + cash until launchS&P 500 (SPY)
See each holding’s contribution · 20 investments
Starting dollar allocations match the model portfolio below. Contribution is each holding’s gain or loss divided by the full $1,000,000 budget; it adds up to the portfolio return.
| Holding | Starting allocation | Invested on | Ending value | Gain / loss | Contribution |
|---|---|---|---|---|---|
| FOFCohen & Steers Closed-End Opportunity | $90,0009% | Oct 11, 2021 | $124,285 | +$34,285 | +3.43 pp |
| UTGReaves Utility Income Fund | $70,0007% | Oct 11, 2021 | $111,549 | +$41,549 | +4.15 pp |
| ARDCAres Dynamic Credit Allocation Fund | $70,0007% | Oct 11, 2021 | $80,170 | +$10,170 | +1.02 pp |
| UTFCohen & Steers Infrastructure | $60,0006% | Oct 11, 2021 | $80,990 | +$20,990 | +2.10 pp |
| MCIBarings Corporate Investors | $60,0006% | Oct 11, 2021 | $108,895 | +$48,895 | +4.89 pp |
| JQCNuveen Credit Strategies Income Fund | $60,0006% | Oct 11, 2021 | $74,012 | +$14,012 | +1.40 pp |
| PFNPIMCO Income Strategy Fund II | $60,0006% | Oct 11, 2021 | $65,934 | +$5,934 | +0.59 pp |
| PBDCPutnam BDC Income | $60,0006% | Sep 30, 2022Cash at 0% until this date | $91,880 | +$31,880 | +3.19 pp |
| MPVBarings Participation Investors | $50,0005% | Oct 11, 2021 | $92,912 | +$42,912 | +4.29 pp |
| BGHBarings Global Short Duration High Yield Fund | $50,0005% | Oct 11, 2021 | $62,887 | +$12,887 | +1.29 pp |
| GHYPGIM Global High Yield Fund | $50,0005% | Oct 11, 2021 | $58,968 | +$8,968 | +0.90 pp |
| VVRInvesco Senior Income Trust | $50,0005% | Oct 11, 2021 | $59,175 | +$9,175 | +0.92 pp |
| KIOKKR Income Opportunities Fund | $40,0004% | Oct 11, 2021 | $43,328 | +$3,328 | +0.33 pp |
| PDOPIMCO Dynamic Income Opportunities Fund | $40,0004% | Oct 11, 2021 | $42,127 | +$2,127 | +0.21 pp |
| PAXSPIMCO Access Income Fund | $40,0004% | Jan 27, 2022Cash at 0% until this date | $45,881 | +$5,881 | +0.59 pp |
| BBDCBarings BDC | $40,0004% | Oct 11, 2021 | $53,554 | +$13,554 | +1.36 pp |
| FSCOFS Credit Opportunities Corp. | $30,0003% | Nov 14, 2022Cash at 0% until this date | $54,363 | +$24,363 | +2.44 pp |
| BRWSaba Capital Income & Opportunities Fund | $30,0003% | Oct 11, 2021 | $38,046 | +$8,046 | +0.80 pp |
| EICEagle Point Income Company | $30,0003% | Oct 11, 2021 | $26,169 | −$3,831 | -0.38 pp |
| RLTYCohen & Steers Real Estate Opportunities & Income Fund | $20,0002% | Feb 24, 2022Cash at 0% until this date | $20,714 | +$714 | +0.07 pp |
| Portfolio total | $1,000,000 | Oct 11, 2021 | $1,335,837 | +$335,837 | +33.58% |
Hypothetical hindsight illustration using this plan’s selected holdings and allocation weights. It is not the creator’s actual historical portfolio or a live performance record. Each position’s ending value is its initial allocation × ending adjusted close ÷ purchase-date adjusted close. Distributions are reinvested in the same security; no rebalancing, withdrawals or new contributions. Fractional shares are assumed. Personal taxes and transaction costs are excluded; fund expenses are reflected in market-price performance.
The window ends on the latest verified session shared by all holdings and begins on the first matched trading session on or after its 5-year anniversary. International comparisons require same-date prices and exchange rates. Chart points use dates with prices for every invested holding. Dollar values are rounded for display; totals use unrounded values. New funds use their first available market close, which can follow the issuer’s inception date. Return methodology
All holdings checked Oct 10, 2026.
Archived original · September 20 · $1M budget
Income Factory Cashflow 2026 Q4 Fund
Put the cash flow back to work.
A credit-led portfolio designed to reinvest distributions across several lending and income strategies. Capital durability, manager diversification and a credible income process matter more than the biggest quoted payout.
Prepared Sep 20, 2026 · USD · Distributions reinvestedThe investment case
Why this portfolio
01
Keep the factory productive
Combine traditional credit, senior loans, diversified BDC exposure and a limited CLO-debt allocation. Reinvest cash flows rather than depend on selling holdings to finance the model.
02
Check what the income costs
The dashboard’s distribution-contribution rank is one input, not a payout-coverage test. We also consider observed capital losses, strategy complexity and drawdowns. FSK ranks highly on the income proxy but is excluded from this edition.
03
Spread the managers and risks
FOF anchors diversified fund exposure; utilities and infrastructure broaden the economic drivers. Direct Barings allocations total 20%, PIMCO 14%, and the BDC sleeve 10%. Fund-of-funds overlap remains possible.
Where the capital goes
Allocation by role
- Traditional credit$410,00041%
- Senior and floating-rate loans$150,00015%
- Infrastructure and utilities$130,00013%
- Diversifiers$110,00011%
- CLO and diversified loans$100,00010%
- BDCs and private credit$100,00010%
Direct portfolio allocations. Underlying companies, managers and credit exposures can overlap across funds.
The $1,000,000 plan
View the full research universe Holdings & allocations
Percentages are of the whole fund. Dollar amounts are targets to invest, rather than current market values.
20 of 20 holdings · Every amount is a proposed allocation in USD.
| Investment | Weight | Amount to invest | Why this allocation |
|---|---|---|---|
| 9% | $90,000 | The largest allocation follows the philosophy’s diversified cash-flow approach and Bavaria’s public 2026 discussion, while staying below the 10% cap. What to watchUnderlying CEF overlap, leverage and distributions exceeding earned returns. Research source | |
| 7% | $70,000 | A diversified credit mandate spreads exposure across debt structures; a core role avoids relying solely on high-yield bonds. | |
| 7% | $70,000 | Utility-focused equities diversify a credit-heavy portfolio and provide a different source of distributable cash. | |
| 6% | $60,000 | Senior-loan exposure helps diversify rate sensitivity across the credit book, with a meaningful but bounded weight. | |
| 6% | $60,000 | Private-placement lending and its longer observed total-return record earn a meaningful allocation within the Barings cap. | |
| 6% | $60,000 | Uses diversified BDC exposure as the main private-lending allocation instead of depending on one lender. | |
| 6% | $60,000 | A flexible credit allocation provides an established income strategy; its weight is balanced with two smaller PIMCO positions. | |
| 6% | $60,000 | Adds broader infrastructure exposure alongside UTG, with a slightly lower weight to contain equity and manager overlap. | |
| 5% | $50,000 | Shorter-duration high-yield credit broadens the lending mix without making a large interest-rate bet. | |
| 5% | $50,000 | Adds another manager and a global high-yield opportunity set to the traditional credit allocation. | |
| 5% | $50,000 | Complements MCI’s private-credit exposure but stays smaller because similar manager and borrower risks can overlap. What to watchPrivate-market valuations, liquidity and concentration with other Barings funds. Research source | |
| 5% | $50,000 | Diversifies loan management alongside JQC, with a mid-sized weight reflecting recent market-price weakness. What to watchFalling base rates can reduce income while credit losses remain possible. Research source | |
| 4% | $40,000 | Provides a measured direct-lender position alongside PBDC; the combined BDC sleeve stays at 10%. What to watchNon-accruals, portfolio valuations and exposure already held through PBDC. Research source | |
| 4% | $40,000 | An opportunistic credit allocation adds flexibility, sized below the broader loan anchors because of its risk profile. | |
| 4% | $40,000 | Completes the PIMCO allocation with another mandate while keeping the fund family below 15% in direct positions. | |
| 4% | $40,000 | Adds multi-sector credit flexibility while the moderate weight recognizes a weak recent market-price record. | |
| 3% | $30,000 | An opportunistic strategy adds manager variety; the small weight reflects recent losses and a more flexible mandate. | |
| 3% | $30,000 | Provides a small CLO-credit allocation without adding the pure CLO-equity funds excluded from this model. What to watchStructured-credit complexity, lower-rated debt and credit-cycle sensitivity. Research source | |
| 3% | $30,000 | Keeps access to a specialist credit opportunity set, but recent weakness limits the allocation to a satellite role. | |
| 2% | $20,000 | A small real-estate and preferred-securities position diversifies cash-flow sources without a large property-market bet. | |
| Total allocation | 100% | $1,000,000 | 20 holdings · Fully allocated |
Concentration limits
Avoids concentrating the credit portfolio in a single fund family.
PFN · PDO · PAXSContains private-company lending and underlying BDC overlap.
PBDC · BBDCThese are direct-position controls, not a complete look-through exposure calculation. No margin borrowing is assumed at the model level; underlying funds may use leverage.
Maintain the investment case
When to review
- Review income coverage, NAV total return, borrowing costs and non-accruals with each new issuer report; market-price distribution contribution does not establish coverage.
- Reinvest distributions in underweight holdings whose investment case remains intact. Do not add solely because a price fall makes the quoted yield look larger.
- Reassess persistent NAV erosion, a distribution reduction or worsening credit quality. Review a CEF premium before funding a position.
- Review after Q4 in January 2027, and sooner for a thesis change. Rebalance above 10% or below 1%; otherwise review drift beyond two percentage points.
Selective by design
Why some names stay out
OXLC · ECC · OCCI
CLO-equity exposure and negative observed longer-period total returns do not justify allocating capital merely for a high distribution.
FSK · ACP · XFLT · NCDL
Deep drawdowns, negative longer returns or limited evidence of capital recovery make these lower priorities for this edition.
BIZD · YYY · CHW
Avoids adding another layer of overlapping BDC/CEF exposure or more equity cyclicality to reach the holding count.
Excluded from this model does not mean excluded from the research universe.
Sources & assumptions
The portfolio weights are our judgments about strategy fit, earnings or income potential, diversification and risk. Market-price history through Sep 18, 2026 provides context; past returns are not expected future returns. Current valuation, NAV discounts and payout coverage are not available as a complete live dataset.
Steven Bavaria · Income investing for 2026Reinvestment, distribution durability and FOF as a publicly discussed 2026 idea. This model uses its own selections and weights.Cohen & Steers · FOF factsheetFund-of-funds structure, NAV returns, distribution methodology and underlying risks.Barings · MCI portfolio and reportsPrivate-placement credit strategy, distribution record and 2026 reporting.Nuveen · JQC strategy and risksSenior loans, high-yield debt, CLO debt and leverage.
Model basis. A long-term, fully invested $1,000,000 USD portfolio with distributions reinvested. The Q4 label identifies this allocation edition, not a three-month return forecast. Dollar targets exclude personal taxes, commissions and share-rounding differences.
Independent research. This is an Income Lens model inspired by the named philosophy. It is not an official creator portfolio, a registered fund offering or a representation that the holdings are suitable for every investor. No trades have been placed.