Energy Income Strategy

Investment Approach

The Energy Income Strategy is an actively managed portfolio that invests primarily in equity securities of Canadian companies engaged in the exploration, development, production, sale and distribution of oil, natural gas and other commodities. By investing primarily in Canadian companies, the Strategy seeks to capitalize on the increasingly important role Canada is expected to play in the future demand for oil and natural gas.

Key Considerations

• The prospect of high oil and natural gas prices resulting from rising demand in the face of declining supply presents an attractive long-term opportunity for investors.
• The Strategy may provide significant income potential resulting from strong cash flow generation within the underlying trust vehicle.
• The Strategy may provide a source of income that is largely independent of interest rate movements.

Important Information

This strategy invests in equity securities and is subject to the risk that equity security prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the strategy's equity securities may fluctuate drastically from day-to-day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in an equity-based strategy. You could lose all or some of your investment.

The strategy invests in a limited number of securities. As a result, the strategy's investment performance may be more volatile, as it may be more susceptible to risks associated with a single economic, political, or regulatory event than a strategy that invests in a greater number of issuers.

The strategy is subject to the risk that its primary market segment, investments in securities of energy and utility companies, may underperform other market segments or the equity markets as a whole. Moreover, this investment approach may be contrary to general investment opinion at times or otherwise fail to produce the desired result, causing the strategy to underperform peers that also seek capital appreciation but use different approaches to select stocks.

The smaller capitalization companies in which the strategy invests may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small companies may have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Small cap stocks may be very volatile and the price movements of the portfolio's shares may reflect that volatility. It may be more difficult to sell a large quantity of shares of one small cap issuer.

International securities involve special risks, including currency fluctuation, lower liquidity, different accounting methods and economic and political systems, and higher transaction costs.