SWM Canadian Energy Income Index: Overview

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Current Asset Allocation Mode: Bull Mode (Effective until end of Q4, 2009)
Trailing 12 Month Yield: 8.3% (As of Oct 31, 2009)
Projected Forward 12 Month Yield: 3.69% (As of Oct 31, 2009)

The SWM Canadian Energy Index was created in June 2004 to give investors a simple method of investing in the Canadian oil sands while generating a significant income stream from Canadian royalty trusts focused on the energy sector.

A tactical asset allocation based on the 4 quarter moving average price of NYMEX crude allows the index to quickly adjust to changes in the energy sector. During the bull phase 70% of the assets are allocated to Canadian based oil sands producers and 30% is allocated to Canadian royalty trusts which focuses the index primarily on growth and provides a decent level of income.

During the bear phase the asset allocation is reversed and the index generates a significant income stream that may reduce the volatility of investing in the sector and allow investors to be “paid to wait” for the next bull market phase to begin.