The fund seeks total return by investing in companies across any size in the United States.
The investment process seeks to invest in MLPs in the energy sector that derive their revenues from energy infrastructure assets or energy-related assets or activities.
Next, the research team focuses on companies with attractive businesses at reasonable valuations.
The team also looks for companies that exhibit potential for earnings and cash flow growth, book or replacement values, distribution yields, and returns on invested capital.
In evaluating securities, the team also considers factors such as a company’s position in its industry or sector, internal growth prospects, its pricing flexibility, possible changes in its operating environment, and management’s own equity interest.
In addition, the team prefers MLPs that often have stable distributions and attractive growth profiles, and generate durable, predictable cash flows.
Other factors in consideration would be high barriers to entry and companies that capitalize on market inefficiencies.
Then the manager constructs a portfolio from a list of companies in the benchmark index favored by the research team and allocates capital based on its conviction level.
The fund may invest up to 20% of its net assets in foreign securities, such as foreign companies primarily engaged in the energy sector and Canadian income and royalty trusts.
The fund is not diversified, which means that its investment results may be dependent upon the results of fewer investments.
