SWM Canadian Energy Income Index: Overview


Current Asset Allocation Mode: Bull Mode (Effective until end of Q1, 2010)
Trailing 12 Month Yield: 5.34% (As of Dec 31, 2009)
Projected Forward 12 Month Yield: 3.34% (As of Dec 31, 2009)

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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.

SWM Index