Green

1
Green Gold Fund

• Recommendation
• Buy Energy Income and Growth Fund (FEN)

2
WHO and WHAT is FEN?

• FEN is a non-diversified, closed-end management
  investment company. The fund operates with 27
  leverage (borrowings).
• FEN invests in publicly traded master limited
  partnerships (MLPs) and related entities in
  energy.
• FEN is a closed-end fund, meaning it has various
  securities, new shares are rarely issued, and it
  will trade based on the net asset value (NAV)
  with a premium (discount).

3
WHAT is an MLP?

• An MLP is a Master Limited Partnership which
  allows the tax benefits of a partnership (no
  state or federal corporate income tax) with the
  liquidity of publicly traded securities.
• They pay investors through quarterly required
  distributions (QRDs), which are determined by
  contracts between the general partner (business)
  and limited partners (investors).
• The vast majority of MLPs are pipeline
  businesses because of the requirements of the
  QRDs and the steady income from the
  transportation of oil, gasoline, and natural gas.

4
WHEN is FEN?

• In late July FEN sold shares which caused a sell
  off and buying opportunity since the proceeds
  were reinvested.
• Recently, the premium (discount) to NAV dropped
  into negative territory and it remains near the
  52-week low.

5
WHY is FEN?

• The dividend alone is over 7 yield versus GGFs
  yearly goal for returns of 6-8.
• Since inception, FENs nominal dividend has only
  increased (start .34, now .47), and the yield
  has not gone below 5.

6
Investment Information
Prev Close
1y Target Est
52wk Range 22.45 30.79
Avg Vol (3m) 121,404
Market Cap 292.35
P/E (ttm) n/a
EPS (ttm) n/a
Div Yield 0.47 ()
Forward P/E n/a
3 Year Price Graph (Morningstar)
7
SWOT Analysis

• SWOT analysis, and how each point impacts company
  EPS/valuation multiple

Strengths Company risk is spread through many holdings. Dividend exceeds goals target return qualifies as core holding. Limited downside excellent risk-adjusted return leverage. Weaknesses Low beta. Low international exposure.
Opportunities Additional dividend increases. Individuals and funds looking for consistent yield in low rate environment. Threats Inflation deteriorating real value of dividend and peoples appetite for consistent yield.
8
Investment Thesis

• FEN offers a consistent dividend with good
  risk-adjusted return, which should be able to
  carry us through a turbulent market with limited
  downside while meeting the Funds objectives of
  6-8 a year and performing well at RISE.

9
Portfolio Placement / Recommendation

• Sector Energy/Utilities
• Industry Group Midstream oil and gas fund
• Current Holdings FEN, HES, PXJ, SU
• Target Sector Allocation 8.54,
• Current Sector Allocation ,
• Remaining Allocation ,
• BUY 150 shares of FEN at Limit Price of 26.85
  (approx. 4028, xxx of portfolio)
• Holding Period/Exit Strategy