|Asset Classes||Annualized Return(%)||Current Yield(%)||Hypothetical Value of $1000||Correlation to MLPs
||Sharpe Ratio||Standard Deviation(%)|
|Fixed Income||4.3||3.3||$ 1,644||-0.05||0.72||3.2|
|S&P 500 TR||8.7||2.0||$ 2,672||0.53||0.46||14.3|
|Russell 2000||8.0||1.3||$ 2,496||0.46||0.32||18.8|
|Dow Jones||9.5||2.2||$ 2,931||0.50||0.55||13.6|
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MLPs are represented by the total return of the Alerian MLP Index (NYSE: AMZ), a composite index of the 50 most prominent energy master limited partnerships (Inception date:06/01/2006). REITs are represented by the FTSE NAREIT Equity REIT Index designed to track performance of publicly traded Real Estate Investment Trusts (Inception date: 12/31/1971). Utilities are represented by the Dow Jones Utilities Index designed to track the performance of the Utilities sector (Inception date: 01/02/1929). The S&P 500 Index is a capitalization-weighted index that measures the performance of 500 large-capitalization domestic stocks representing all major industries (Inception date: 03/04/1957). The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe (Inception date: 12/29/1978). Fixed Income is represented by the Barclays Aggregate Bond Index (Inception date: 01/30/1976). An investor cannot invest directly in an index. Data from Alerian and Bloomberg
Asset classes above are represented by the following indices:
The above time period begins on the inception of the Alerian Index (06/01/2006). We believe this data from 06/01/2006 through the present represents multiple market cycles.
Provides investors with unbiased and comprehensive benchmarks for the MLP asset class. The Series is used for the purposes of asset allocation, investment analysis, portfolio hedging, and the creation of index tracking funds. Investments in MLPs involve risks different from those of investing in common stock, including limited control and voting rights, conflicts of interest, cash flow and dilution risks. MLPs are generally considered interest-rate sensitive investments and during periods of interest rate volatility, these investments may not provide attractive returns.
Index is an unmanaged index commonly used as a benchmark to measure large cap core stock performance and characteristics. The index's performance does not reflect the deduction of transaction costs, management fees, or other costs which would reduce returns. References to market or composite indexes, benchmarks or other measures of relative market performance (indexes) over a specified period of time are provided for your information only and do not imply that a portfolio will achieve similar returns, volatility or other results. An investor cannot invest directly in the index. Overall securities market risks may affect the value of individual instruments in which the Fund invests.
A broadbased index comprised of government, corporate, mortgage and asset-backed issues rated investment grade or higher. The index's performance does not reflect the deduction of transaction costs, management fees, or other costs which would reduce returns. References to market or composite indexes, benchmarks or other measures of relative market performance (indexes) over a specified period of time are provided for your information only and do not imply that a portfolio will achieve similar returns, volatility or other results. An investor cannot invest directly in the index. The value of the Fund's investments in fixed income securities will fluctuate with changes in the interest rates, which is typically an inverse relationship.
A free-float adjusted market "capitalization weighted" index that includes all "tax qualified" REITs listed in the NYSE, AMEX, and NASDAQ National Market. Real estate values can be affected by a variety of factors, including supply and demand for properties, the economic health of the country or different regions and the strength of specific industries that rent properties.
There is a risk that note issuers will not make payments on securities held by the Fund, resulting in losses to the Fund. In addition, the credit quality of securities held by the Fund may be lowered if an issuer's financial condition changes.
The Fund's distribution policy is not designed to guarantee distributions that equal a fixed percentage of the Fund's current net asset value per share. Shareholders receiving periodic payments from the Fund may be under the impression that they are receiving net profits. However, all or a portion of a distribution may consist of a return of capital (i.e. from your original investment). Shareholders should not assume that the source of a distribution from the Fund is net profit. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares.
ETNs are subject to administrative and other expenses, which will be indirectly paid by the Fund. Each ETN is subject to specific risks, depending on the nature of the ETN. ETNs are subject to default risks. Foreign Investment Risk: Investing in notes of foreign issuers involves risks not typically associated with U.S. investments, including adverse political, social and economic developments, less liquidity, greater volatility, less developed or less efficient trading markets, political instability and differing auditing and legal standards.
Typically, a rise in interest rates can cause a decline in the value of notes and MLPs owned by the Fund.
Liquidity risk exists when particular investments of the Fund would be difficult to purchase or sell, possibly preventing the Fund from selling such illiquid securities at an advantageous time or price, or possibly requiring the Fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations.
Eagle's judgments about the attractiveness, value and potential appreciation of particular asset classes and securities in which the Fund invests may prove to be incorrect and may not produce the desired results. Additionally, Princeton's judgments about the potential performance of the Fund's investment portfolio, within the Fund's investment policies and risk parameters, may prove incorrect and may not produce the desired results.
Overall securities market risks may affect the value of inpidual instruments in which the Fund invests. Factors such as domestic and foreign economic growth and market conditions, interest rate levels, and political events affect the securities markets.
Investments in MLPs involve risks different from those of investing in common stock including risks related to limited control and limited rights to vote on matters affecting the MLP, risks related to potential conflicts of interest between the MLP and the MLP's general partner, cash flow risks, dilution risks and risks related to the general partner's limited call right. MLPs are generally considered interest-rate sensitive investments. During periods of interest rate volatility, these investments may not provide attractive returns. Depending on the state of interest rates in general, the use of MLPs could enhance or harm the overall performance of the Fund.
MLPs, typically, do not pay U.S. federal income tax at the partnership level. Instead, each partner is allocated a share of the partnership's income, gains, losses, deductions and expenses. A change in current tax law or in the underlying business mix of a given MLP could result in an MLP being treated as a corporation for U.S. federal income tax purposes, which would result in such MLP being required to pay U.S. federal income tax on its taxable income. The classification of an MLP as a corporation for U.S. federal income tax purposes would have the effect of reducing the amount of cash available for distribution by the MLP. Thus, if any of the MLPs owned by the Fund were treated as corporations for U.S. federal income tax purposes, it could result in a reduction of the value of your investment in the Fund and lower income, as compared to an MLP that is not taxed as a corporation.
The Fund focuses its investments in the energy infrastructure sector, through MLP securities. Because of its focus in this sector, the performance of the Fund is tied closely to and affected by developments in the energy sector, such as the possibility that government regulation will negatively impact companies in this sector. Energy infrastructure entities are subject to the risks specific to the industry they serve including, but not limited to, the following: Fluctuations in commodity prices; Reduced volumes of natural gas or other energy commodities available for transporting, processing, storing or distributing; New construction risk and acquisition risk which can limit potential growth; A sustained reduced demand for crude oil, natural gas and refined petroleum products resulting from a recession or an increase in market price or higher taxes; Depletion of the natural gas reserves or other commodities if not replaced; Changes in the regulatory environment; Extreme weather; Rising interest rates which could result in a higher cost of capital and drive investors into other investment opportunities; and Threats of attack by terrorists.
As a non-diversified fund, the Fund may invest more than 5% of its total assets in the securities of one or more issuers.
The value of a small or medium capitalization company securities may be subject to more abrupt or erratic market movements than those of larger, more established companies or the market averages in general.
MLP-related structured notes involve tracking risk, issuer default risk and may involve leverage risk.