Asset Class Performance Comparisons

June 2006 – June 2016

ASSET
CLASSES
ANNUALIZED
RETURN (%)
CURRENT
YIELD (%)
HYPOTHETICAL
VALUE OF $1000
CORRELATION
TO MLPS
SHARPE
RATIO
STANDARD
DEVIATION (%)
MLPs 9.2 7.1 $ 2,436 1.00 0.38 19.1
REITs 7.9 4.0 $ 2,158 0.32 0.23 25.3
Utilities 10.0 3.1 $ 2,605 0.34 0.57 14.0
Fixed Income 5.1 1.9 $ 1,653 -0.06 0.97 3.2
S&P 500 TR 7.4 2.2 $ 2,049 0.53 0.35 15.2
Russell 2000 6.2 1.7 $ 1,836 0.47 0.21 19.7
Nasdaq 8.2 1.3 $ 2,223 0.51 0.35 17.7
Dow Jones 7.6 2.6 $ 2,090 0.51 0.39 14.2

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:

  • MLPs – Alerian MLP Index
  • REITs – NAREIT All Equity
  • Utilities – Dow Jones Utilities Index
  • Fixed Income – Barclays Aggregate Bond Index
  • Data from Alerian and Bloomberg

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.

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.

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.

Dow Jones Utilities

A stock index tracking 15 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.

S&P 500

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.

Russell 2000

The most common benchmark for mutual funds, it tracks the overall performance of small-cap to mid-cap company shares. 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.

Nasdaq

An American stock exchange that is the largest electronic screen-based equity securities trading market in the United States and fourth largest by market capitalization in the world. Overall securities market risks may affect the value of individual instruments in which the Fund invests.

Dow Jones

A stock market index that shows how 30 large, publicly owned companies based in the United States have traded during a standard trading session. Overall securities market risks may affect the value of individual instruments in which the Fund invests.