July provided a good example of why I think about portfolio income separately from what is happening in the stock market.
Equity markets sent very different signals during the month. Smaller companies and value-oriented stocks generally held up better, while technology, particularly AI and semiconductor stocks, came under pressure. The S&P 500 was roughly flat, the Dow finished modestly higher, and the Nasdaq 100 experienced a much sharper decline.
Meanwhile, the Income Bucket continued operating largely on its own track.
For July, the portfolio generated a 20.59% annualized yield, the highest monthly figure we've recorded so far in 2026. Through the first seven months of the year, the average monthly annualized yield stands at approximately 15.36%.
I don't view July's 20.59% as a new expectation for the portfolio. There were some calendar quirks and memory payments that increased July's income distributions. And then normal portfolio changes, ETFs make payments, structured notes are called or replaced, and capital shifts between investments can make for month to month changes.
What stood out in July was how many different sources contributed to our diversified income.
While different areas of the equity market moved in opposite directions, income continued to come from private real estate, private credit, ETFs, and structured income notes. Those investments don't all depend on the same conditions to generate cash flow.
That's intentional.
Private Real Estate
Private real estate continues to provide one of the steadier foundations within the Income Bucket.
Current holdings include:
- BREIT — Blackstone Real Estate Income Trust
- GCREIT — Nuveen Global Cities REIT
These investments provide exposure to institutional-quality real estate across areas such as multifamily housing, industrial properties, data centers, healthcare, and other income-producing assets.
Their role within the Income Bucket is less about producing the highest yield and more about providing cash flow backed by real estate.
That distinction becomes more noticeable during months like July. Public markets can move quickly as investor sentiment changes, while property-level income tends to follow a different path.
The result is another source of portfolio income that doesn't require equity markets to move higher.
Private Credit
Private credit has become a broader and more diversified part of the Income Bucket this year.
Current holdings include:
- BCRED — Blackstone Private Credit Fund
- OCIC — Blue Owl Credit Income Company
- CTAC — Carlyle Tactical Private Credit Fund
- CAPIX — Calamos Aksia Alternative Credit and Income Fund
- NABFX — Neuberger Asset-Based Credit Fund
- OWLCX — Blue Owl Alternative Credit Fund
- NAIFX — Newest fund from Nomura, this is another asset based fund
The newer additions have expanded the types of credit exposure available within the portfolio.
Rather than relying exclusively on traditional direct lending, the sleeve now includes exposure across different managers and areas of the credit markets, including asset-based and alternative credit strategies.
That's an important distinction.
Two private credit investments may both generate income, but the underlying loans, borrowers, collateral, managers, and sources of return can be very different.
The goal isn't simply to own more private credit. It's to diversify the risks behind the diversified income we're receiving.
ETFs
The ETF sleeve continues to provide the liquidity that some of the portfolio's private investments naturally lack.
Current holdings include:
- PCMM
- QQQI
- CAIE
- CAIQ
Each approaches income differently.
QQQI uses an options-based strategy, PCMM provides credit exposure through CLOs, while CAIE and CAIQ use structured investment strategies to generate distributions.
July's weakness in technology also provided an interesting backdrop for these holdings. Market volatility doesn't affect every income strategy the same way, and in some cases volatility itself can influence the amount of income an investment can generate.
The ETF sleeve therefore serves two purposes: generating diversified income and maintaining a liquid portion of the portfolio that can be adjusted as conditions change.
Structured Income Notes
Structured income notes remain the most active portion of the Income Bucket.
Unlike many traditional income investments, these positions have defined maturities, call dates, contractual coupons, and specific market exposures.
As notes are called or mature, capital becomes available for new opportunities.
Changes in July 2026:
- 6 income notes were called during the month
- New opportunities continued to offer attractive yields
- The portfolio remained diversified across issuers, maturities, and underlying exposures
The important part isn't simply replacing every note that gets called.
Each new opportunity has to be considered against what we already own. Yield matters, but so do the underlying exposure, downside protection, maturity, issuer concentration, and how a new position changes the overall portfolio.
That ongoing rotation is one reason this remains the most actively managed part of the Income Bucket.
Closing Thoughts
July's 20.59% annualized yield was an unusually strong monthly result. It was also a useful illustration of what diversification can look like when markets aren't moving together.
Through July, the average monthly annualized yield of approximately 15.36% provides a broader view than any individual month.
The focus remains on building multiple sources of cash flow, understanding the risks behind each one, and adjusting the portfolio as those opportunities change.
If you'd like to review how your income strategy is positioned or discuss whether this approach fits into your broader financial plan, I'd be happy to have that conversation. 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://funds.nomuracapitalmanagement.com/
10. https://bondbloxxetf.com/bondbloxx-private-credit-clo-etf/
11. https://neosfunds.com/qqqi/
12. https://www.calamos.com/funds/etf/calamos-autocallable-income-caie/
13. 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.