PRINCIPAL INVESTMENT STRATEGIES
Under normal market conditions, the Fund will invest at least 80% of its net assets in equity securities of companies deemed to be engaged in the energy infrastructure segment of the energy and utilities sectors. In addition, under normal market conditions, the Fund will invest at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities of companies domiciled in the United States and Canada. Such securities may include common stocks, depositary receipts, master limited partnerships (“MLPs”), MLP I-shares, MLP related entities, pipeline and power utility companies, Canadian energy infrastructure companies and Canadian Energy Infrastructure Trusts (“CEITs”).
The Fund’s investment objective is to seek total return with an emphasis on current distributions and dividends paid to shareholders. The Sub-Advisor believes that a professionally managed portfolio of higher dividend paying and non-cyclical energy infrastructure companies offers an attractive balance of income and growth. The Sub-Advisor’s priority is to focus on steady fee-for-service income and will limit the cyclical energy exposure of the portfolio in order to reduce the volatility of returns. To select securities for the portfolio, the Sub-Advisor uses rigorous investment research and analytical tools along with conservative portfolio construction.
The fund may also use derivative investments to hedge against interest rate and market risks. The Fund may engage in various interest rate and currency hedging transactions, including buying or selling options or entering into other transactions including forward contracts, swaps and other derivatives transactions. The Fund may also engage in certain transactions intended to hedge our exposure to currency risks due to foreign currency denominated investments. [The Fund may sell covered calls on equity positions in the portfolio in order to enhance its income.]
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