Each month, I review how the Income Bucket is positioned, what influenced results during the month, and how the portfolio continues to evolve as opportunities emerge.
May looked very different from April. Equity markets moved sharply higher even as headwinds in economic growth, inflation trends, and the path of interest rates came through. While stock market performance dominated many of the headlines, the Income Bucket continued to focus on a different objective: generating consistent portfolio income across multiple income-producing investments.
For May, the portfolio generated an annualized yield of 14.17%, bringing the year-to-date average to 14.21%.
While the overall income result was similar to recent months, there was significant activity beneath the surface. The structured income note portfolio experienced one of its busiest months of the year, several new private credit opportunities were added, and the portfolio continued to rotate capital into new income-producing positions.
The result was another month of diversified income generation across private real estate, private credit, ETFs, and structured investments.
Private Real Estate
Private real estate continues to serve as a core anchor within the Income Bucket. These investments provide income tied to underlying property cash flows rather than daily stock market movements.
Current holdings include:
- BREIT¹ (Blackstone Real Estate Income Trust)
- GCREIT² (Nuveen Global Cities REIT)
These strategies remain focused on sectors with durable demand, including:
- Multifamily housing
- Industrial and logistics properties
- Data centers and infrastructure-related real estate
BREIT continues to maintain significant exposure to these sectors, while GCREIT provides geographic diversification across North America, Europe, and Asia-Pacific.
This sleeve provides:
- Predictable cash flow
- Income supported by long-term leases
- Long term growth potential BREIT(9.3% annualized) GCREIT(7.11% annualized) since inception
As a result, private real estate remains an important source of stability within the overall income strategy.
Private Credit
May also brought additional opportunities within private credit. Three new private credit strategies were added to the ongoing review process as we continue evaluating ways to expand and diversify the credit sleeve. While existing holdings remain core contributors to income, the opportunity set within private credit continues to evolve as managers launch new strategies and seek to capitalize on current lending conditions.
Current holdings include:
BCRED³ (Blackstone Private Credit Fund)
OCIC⁵ (Blue Owl Credit Income Company)
CTAC⁴ (Carlyle Tactical Private Credit Fund)
New Editions:
CAPIX6 – From Calamos, sub-advised by Aksia. This portfolio is spread across 180 loans, 45 industries, and 91 different sourcing partners
NABFX7 – This real asset portfolio from Neuberger Berman is the perfect compliment to the floating-rate loans
OWLCX8 – Another real asset option from Blue Owl. This fund helps diversify within the sleeve which currently has a 9.5% annualized yield.
Although market attention often focuses on stocks and bonds, private credit continues to quietly generate a meaningful portion of the portfolio’s income.
Combined with private real estate, this sleeve provides a strong foundation for the overall Income Bucket.
ETFs
The ETF sleeve adds liquidity, flexibility, and additional income diversification.
Current holdings include:
- PCMM9
- QQQI10
- CAIE11
- CAIQ12
These holdings generate income through a variety of approaches, including:
- Options-based income strategies
- Structured note exposure
- CLO and credit-based income
One of the advantages of this sleeve is that each fund produces income differently. As market conditions change, different strategies can contribute more or less to overall portfolio income.
Structured Income Notes
Structured income notes were the most active area of the portfolio during May.
Changes in May 2026:
- 6 income notes were called during the month as underlying markets recovered from April’s volatility.
- 12 new structured income notes were added.
- New notes continued to offer yields in the mid-to-high teens.
- The portfolio remains diversified across issuers, maturities, and underlying market exposures.
The pace of activity highlights one of the unique characteristics of structured income investing. As notes are called, capital is redeployed into new opportunities, allowing the portfolio to continually adapt to changing market conditions.
Closing Thoughts
One of the more notable observations from May was how different the market environment looked compared to just a month earlier. Equity markets recovered sharply, yet the Income Bucket continued to generate results consistent with recent months.
That consistency comes from having multiple income engines working simultaneously rather than relying on a single source of return.
May’s 14.17% annualized yield and 14.21% year-to-date average reflect that diversification in action.
As the year progresses, the focus remains on identifying new income opportunities, managing existing positions, and building cash flow that can remain durable across changing market environments.
If you’d like to review how your income strategy is positioned or see how these results fit into your broader plan, I’m always happy to help. For more insights on how these strategies can support your goals, visit the 9M Investments and get a free assessment.
1. https://www.breit.com/performance/
2. https://www.nuveen.com/gcreit/performance
3. https://www.bcred.com/performance
4. https://www.carlyle.com/ctac
6. https://www.acprivatemarkets.com/funds/capix/
7. https://www.nb.com/products/interval-funds/asset-based-credit-fund?nbmi=4189
8. https://wealth.blueowl.com/solutions-product-owlcx
9. https://bondbloxxetf.com/bondbloxx-private-credit-clo-etf/
10. https://neosfunds.com/qqqi/
11. https://www.calamos.com/funds/etf/calamos-autocallable-income-caie/
12. https://www.calamos.com/funds/etf/calamos-nasdaq-autocallable-income-caiq/
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.