Miller/Howard High Income Equity To Change Investment Policies
The Board of Trustees of the Miller/Howard High Income Equity Fund (HIE) (CUSIP-600379 101) (the "Fund") has agreed to make the following changes to the Fund's Investment Policies.
Effective March 1, 2017, the Fund may invest up to 25% of its Total Assets in securities of master limited partnerships (MLPs), generally in the energy sector. This is an increase from the current limit of 15%. The Investment Manager desires to take advantage of moderate valuations in this sector in relation to their long term prospects. In addition, effective March 1, 2017, the Fund may buy put and call options.
The Fund's current options writing strategy states: "The Fund intends to engage in an options writing strategy consisting principally of writing put options on securities already held in its portfolio or securities that are candidates for inclusion in its portfolio......the Fund may, to a lesser extent, also engage in covered call writing strategies." "The Fund may write covered put and call options up to a notional amount of 20% of the Fund's Total Assets." Effective immediately, the Fund's option writing strategy will be amended to state the following: "The Fund intends to engage in an options writing strategy consisting of writing put options on securities already held in its portfolio or securities that are candidates for inclusion in its portfolio. The Fund may also engage in covered call writing strategies."
The changes in the options strategies provide the Investment Manager greater flexibility to take advantage of varying levels of premiums for put and call options.
The Miller/Howard High Income Equity Fund seeks to provide a high level of current income and capital appreciation potential to help investors secure their investment goals.
The Fund is managed by Miller/Howard Investments Inc., based in Woodstock, New York. As of September 30, 2016 the firm managed approximately $6.3 billion in assets. Miller/Howard Investments focuses on income-producing equities. The emphasis is on high-quality stocks with high yield and strong dividend growth offering investors the opportunity for capital appreciation, current income, and growth of income. The firm has managed portfolios for major institutions and individuals for over two decades.
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