The Fund's objective is to maximize long-term return by
investing in equity and fixed income securities of issuers that operate in or
have exposure to the oil and gas industry.
Assisted by the research of Groppe, Long & Littell
(GL&L), an oil and natural gas consulting firm based in Houston, who acts
as our Special Advisor, we remain very positive on the energy sector and
continue to hold the view that global oil production has peaked, thereby
supporting strong oil prices over the next several years. GL&L also
believes that the significant decline rates experienced by both conventional
and unconventional gas wells together with the substantial decrease in drilling
activity in North America will cause natural gas prices to rise through the
balance of 2011 as constrained supply fails to meet fundamental demand. The
Fund will focus on those issuers which have an attractive suite of drilling
prospects, are low cost operators, have proven management teams and have the
potential to demonstrate growth in production on a per share basis through
drilling and acquisition activities.