Ninepoint Energy Income Fund
Compelling Asset Class:
With oil demand predicted to grow until at least 2034 and global inventories falling, the outlook for the energy sector is supportive of continued upward pressure on the price of oil1.
Consistent Income:
Canadian dividend-paying oil producers are well positioned to return meaningful capital back to shareholders with low financial leverage and record free cash flow in the industry. Investors will benefit from the Fund’s target distribution of 7% NAV/unit, paid monthly*.
Covered Call Option Strategy:
Aims to generate additional tax-efficient income utilizing an actively managed covered call options strategy.
Experienced Management:
Managed by Eric Nuttall, Senior Portfolio Manager and Partner, and manager of the Ninepoint Energy Fund.
Investor Friendly Fund Structure:
The Fund is structured as an alternative mutual fund offering Series A, F, S, SF, D on Fundserv and ETF Series (ticker: NRGI).
Sector Allocation as of 03/28/2024
| Sector | Weight |
|---|---|
| Oil & Gas Exploration & Production | 84.35 |
| Integrated Oil & Gas | 7.26 |
| Oil & Gas Storage & Transportation | 3.9 |
| Cash And Cash Equivalents | 3.11 |
| Oil & Gas Drilling | 1.52 |
| Fx | -0.14 |
Geographic Allocation as of 03/28/2024
| Sector | Weight |
|---|---|
| Canada | 51.15 |
| United States | 45.88 |
Top Ten Holdings as of 03/28/2024
| Issuer Name |
|---|
| Cenovus Energy Inc (Alberta) |
| Chord Energy Corp |
| Civitas Resources Inc |
| Devon Energy Corporation |
| Northern Oil And Gas Inc |
| Parex Resources Inc |
| Peyto Exploration & Development Corp |
| Tourmaline Oil Corp |
| Viper Energy Inc |
| Whitecap Resources Inc |
A Generational Investment Opportunity That Pays Dividends
Energy continues to be a vital sector as the world undertakes a multi-decade transition to a lower carbon future. Ninepoint Energy Income Fund gives investors access to the oil side of this generational energy transition opportunity, offering investors the potential for capital appreciation and consistent income by investing in dividend paying energy companies.
Global Oil Demand to Grow through 2050 Despite Surging Renewables
Source: US Energy Information Administration
5-Year Growth of Dividend Payers
Number of energy companies paying dividends increased more than other sectors.
Source: Morningstar.com, February 9, 2022, Why Energy Stocks Are Gushing High Dividends
Reasons to Own Ninepoint Energy Income Fund
- Managed by seasoned Energy sector specialist, Eric Nuttall – Portfolio Manager, Ninepoint Energy Fund
- Actively managed portfolio that benefits from sector growth while delivering consistent dividend income
- Benefit from Ninepoint’s strong research capability and knowledge of the energy sector
- Target distribution of 7% NAV/unit, paid monthly*
- Eligible for Registered Accounts RRSP, RESP, RRIF, RDSP, TFSA
- Liquid Alternative Mutual fund with ETF Series (NRGI)
Other Resources
Investment Team
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Regulatory Documents
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Ticker & Fund Codes
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Fund Details
Fund Type Alternative Energy Income Fund Inception Date February 18, 2022 Registered Tax Plan Status Eligible Distributions Target 7% NAV/unit, paid monthly* Management Fee Series A: 2.5%
Series D:1.50%
Series ETF: 1.50%
Series F: 1.50%Performance Fee 15% of excess over previous quarter High Water Mark Minimum Initial Investment $500 Minimum Subsequent Investment $25 Minimum Investment Term 20 days (1.5% penalty) Redemptions Daily Valuations Daily CUSIP NRGI: 65444A104 (Cboe)
Inception: March 7, 2022. All returns and fund details are a) based on ETF shares; b) net of fees; c) annualized if period is greater than one year; d) as at March 31, 2024.
Top ten holdings, sector allocation and geographic allocation as at March 31, 2024. Top ten holdings based on % of net asset value. Sector allocation based on % of net asset value. Geographic allocation based on % of net asset value and excludes cash. Numbers may not add up due to rounding. Cash and cash equivalents include non-portfolio assets and/or liabilities.
The Ninepoint Energy Income Fund is generally exposed to the following risks. See the simplified prospectus of the Fund for a description of these risks: Absence of an active market for ETF Series risk; Borrowing Risk; Capital Depletion Risk; Collateral Risk; Commodity Risk; Concentration Risk; Currency Risk; Cybersecurity Risk; Derivatives Risk; Energy Risk; Foreign Investment Risk; Halted trading of ETF Series risk; Inflation Risk; Interest Rate Risk; Leverage Risk; Liquidity Risk; Market Risk; Performance fee risk; Regulatory Risk; Securities lending, repurchase and reverse repurchase transactions risk; Series Risk; Short Selling Risk; Specific Issuer Risk; Substantial unitholder risk; Tax Risk; Trading price of ETF Series risk.
Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The indicated rate of return for ETF shares of the Fund for the period ended March 31, 2024 is based on the historical annual compounded total return including changes in share value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns.
Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.
The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering or tax, legal, accounting or professional advice. Readers should consult with their own accountants and/or lawyers for advice on the specific circumstances before taking any action.
Ninepoint Partners LP: Toll Free: 1.866.299.9906. DEALER SERVICES: CIBC Mellon GSSC Record Keeping Services: Toll Free: 1.877.358.0540
*The monthly distribution amount may be adjusted by the Manager without notice throughout the year as market conditions change. Monthly distributions will be comprised of net income, net realized capital gains and/or return of capital. Any net income and/or net realized capital gains earned by the Fund in excess of the monthly distribution will be distributed to unitholders annually in December.
1Source: Bernstein, 2021
Are You An Accredited Investor?
An investment in this Fund requires the financial ability and willingness to accept the high risks and lack of liquidity inherent in this type of an investment. Investors in the Fund must be prepared to bear such risks for an extended period of time and should review suitability with their Investment Advisor.
The minimum subscription amount is $150,000.00 in all jurisdictions, unless you meet the definition of "accredited investor" under National Instrument 45-106 Prospectus and Registration Exemptions.
If you meet the definition "accredited investor" (see below), you may invest a minimum of $25,000. Please consult the Offering Memorandum to determine your qualification status. Investment Advisors should consult their company's internal policies.
The Subscriber, or one or more beneficial purchasers for whom the Subscriber is acting, is (i) a resident of, or the purchase and sale of securities to the Subscriber is otherwise subject to the securities legislation of one of the following: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, North West Territories, or Nunavut, and the Subscriber is (and will at the time of acceptance of the Subscription be) an accredited investor within the meaning of National Instrument 45-106 Prospectus and Registration Exemptions ("NI 45-106") because the Subscriber is one of the following:
| (a) | a Canadian financial institution, or a Schedule III bank; |
| (b) | the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada); |
| (c) | a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary; |
| (d) | a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than a person registered solely as a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador); |
| (e) | an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d); |
| (f) | the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada; |
| (g) | a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l'île de Montréal or an intermunicipal management board in Québec; |
| (h) | any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government; |
| (i) | a pension fund that is regulated by the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction of Canada; |
| (j) | an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000; |
| (k) | an individual whose net income before taxes exceeded $200,000 in each of the 2 most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year; (Note: If individual accredited investors wish to purchase through wholly-owned holding companies or similar entities, such purchasing entities must qualify under section (t) below, which must be initialled.) |
| (l) | an individual who, either alone or with a spouse, has net assets of at least $5,000,000; |
| (m) | a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements; |
| (n) | an investment fund that distributes or has distributed its securities only to:
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| (o) | an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt; |
| (p) | a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be; |
| (q) | a person acting on behalf of a fully managed account managed by that person, if that person:
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| (r) | a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded; |
| (s) | an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function; |
| (t) | a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors; |
| (u) | an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser, or; |
| (v) | a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as an accredited investor. |
Toronto, Ontario M5J 2J1 Canada