As of 03/31/2018
MLPs have been a source of income for investors. MLPs may receive favorable tax treatment of distributions to investors.
Asset classes above are represented by the following indices: MLPs – Alerian MLP Index; Utilities – Dow Jones Utility; Baa – Barclays Baa Bond Index; REITs –NAREIT All Equity REIT Index;
Muni – Barclays Municipal Bond Index. Data from Bloomberg and Alerian as of 03/31/2018.
The Alerian MLP Index
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.
Dow Jones Utilities
A stock index tracking fifteen large, American utility companies. Utility companies borrow more than most companies and thus benefit from low interest rates. Because of this, a downturn on the DJUA is considered a predictor signaling an expected rise in interest rates. Investments focused in the energy sector are subject to risks specific to the industry they serve, including, but not limited to: price fluctuations, reduced volumes, depletion, rising interest rates and extreme weather conditions.
Barclays Aggregate Bond Index
A broad base index, maintained by Barclays Capital, and is often used to represent investment grade bonds being traded in United States. 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.
NAREIT All Equity REIT Index
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.
Barclays Municipal Bond Index
A bond issued by an American city or other local government, or their agencies. Potential issuers of municipal bonds include cities, counties, redevelopment agencies, special-purpose districts, school districts, public utility districts, publicly owned airports and seaports, and any other governmental entity (or group of governments) below the state level. If the issuer is unable to meet its financial obligations, it may fail to make scheduled interest payments and/or be able to replay the principal upon maturity. If interest rates in the marketplace rise, the municipal bond may pay a lower yield relative to newly issued bonds. 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.
U.S. Treasury 10 Year Note
A debt owed by the United States government for a period of ten years. Each note has a stated interest rate, which is paid semi-annually. Because the United States is seen as a very low-risk borrower, many investors see U.S. Treasury 10 Year Note interest rates as indicative of the wider bond market. There is a risk that the US government may not be able to repay its short- or long-term debts in full or on time.