Stable Income Fund

Management Style

The Fund intends to achieve its Investment Objective by investing in global securities which typically have the following characteristics:

• Pay regular dividend and/or interest payments;
• Achieve higher than average yields;
• Provide individual security and overall portfolio dividend yield (or yield to worst in the case of fixed income products) above the S&P 500 average dividend yield;
• Provide sufficient cash flows to the Fund to cover dividend payments made by the Fund.

The Fund will typically hold about 30 securities, although this may fluctuate depending on market conditions.

Uninvested cash may be invested by the Fund in the LOM Money Market Fund Ltd.

Dividends and interest received in respect of a security investment may be reinvested in the same security, invested into other securities, or held as cash depending on market conditions.

The benchmark for the Fund’s performance is 50% Dow Jones Global Dividend Select Index and 50% S&P Preferred Stock Index.

Dividends and interest payments to the Fund may be subject to a withholding tax at source.

Securities can be purchased in any currency. The Fund may enter into back-to-back currency borrowing or utilize derivatives such as forwards, futures, options and other derivatives to hedge against currency fluctuations, but there can be no assurance that such hedging transactions will be effective or beneficial.