price and yield performance of its underlying index, the Alerian Energy Infrastructure Index (AMEI).
Total annual Fund operating expenses: 0.65%
Principal Investment Strategies
The Fund employs a “passive management” – or indexing – investment approach designed to track the performance of the Index. Developed by Alerian, a leading provider of objective MLP benchmarks, data and analytics (“Alerian”), the Index is intended to give investors a means of tracking the overall performance of the North American energy infrastructure sector. North American energy infrastructure sector companies own and operate assets that are used in the energy sector to provide the link between the source of energy (where it is produced) and the end user (where it is consumed).
The Index is comprised of 30 equity securities of issuers headquartered or incorporated in the United States and Canada that engage in the transportation, storage, and processing of energy commodities (“midstream energy businesses”). The following five categories of issuers are included in the Index: master limited partnerships and limited liability companies taxed as partnerships (“MLPs”) known as “Midstream MLPs” (seven constituents, 25% total index weight), U.S. MLP affiliates (seven constituents, 30% total index weight) taxed as corporations, Canadian MLP affiliates (two constituents, 10% total index weight) taxed as corporations, U.S. energy infrastructure and power companies (seven constituents, 15% total index weight) taxed as corporations and Canadian energy infrastructure companies (seven constituents, 20% total index weight) taxed as corporations. Each issuer included in the Index must earn the majority of its cash flow from midstream energy businesses except for U.S. energy infrastructure and power companies, which must earn the majority of its cash flow from the retail distribution of electricity and gas (while also being involved in midstream energy businesses and separately report earnings from those businesses on their financial statements). The Index’s constituents are equally weighted within each category. Eligible companies are selected for inclusion by ranking them in market capitalization, float-adjusted market capitalization, and liquidity. No more than 25% of the Index may consist of MLPs or other issuers treated as publicly traded partnerships for U.S. federal income tax purposes.
The Fund will normally invest at least 90% of its total assets in securities that comprise the Index (or depositary receipts based on such securities). Under normal conditions, the Fund generally will invest in all of the securities that comprise the Index in proportion to their weightings in the Index; however, under various circumstances, it may not be possible or practicable to purchase all of the securities in the Index in those weightings. In those circumstances, the Fund may purchase a sample of the securities in the Index or utilize various combinations of other available investment techniques in seeking performance which corresponds to the performance of the Index.
Unlike direct investments in MLPs, income and losses from the Fund’s investments in MLPs will not directly flow through to the personal tax returns of shareholders. The Fund will report distributions from its investments, including MLPs, made to shareholders annually on Form 1099. Shareholders will not, solely by virtue of their status as Fund shareholders, be treated as engaged in the business conducted by underlying MLPs for federal or state income tax purposes or for purposes of the tax on unrelated business income of tax-exempt organizations.
You can find the prospectus: HERE