You are here

Financial Advisors Homepage

By clicking on the link of any of the above-named strategies, you will be taken to a separate website devoted to that strategy or product.  Before investing in any of the products or strategies listed above, one should carefully consider the strategies’ or funds’ investment objectives, risks, charges and expenses. This, and other, information can be obtained from each separate website devoted to the strategy. For mutual funds, the prospectus and summary prospectus can be obtained at the respective mutual fund websites. The prospectus or summary prospectus should be read carefully before investing.


No results found.

Investment Themes

Why Midstream MLPs?

Historically stable and growing cash distributions, as represented by the Alerian MLP Index.
As of 12/31/15 the Alerian MLP Index had a distribution rate of 8.4%.

Competitive historical track record of total return as represented by the past performance of the Alerian MLP Index. As of 12/31/15, the annualized return of the Alerian MLP Index was 7% over the past 9 years.

Potential to act as an inflation hedge: Historically MLP distribution growth has outpaced inflation. MLPs may have Producer Price Index (“PPI”) escalators built into their contracted pricing models, which may provide predictable growth and an inflation hedge for investors.

Lower correlation to the broad equity market and other asset classes.

Midstream “Toll Collector” fee model allows for investor participation in potential growth of U.S. oil and natural gas industries without business model fundamentals directly correlating to movements in the price of oil and natural gas.

Estimated Continued Expansion: According to a December 2013 study, the IHS, Inc. forecast of oil and gas infrastructure investment over the next 12 years (2014 – 2025) estimates a cumulative spending of $890 billion (in 2012 Dollars), with crude oil and natural gas gathering systems and direct production support facilities receiving the largest share of the investment at 60% of total.

U.S. Domiciled Business: All assets and operations are located in the US and North America.

The Alerian MLP Index is a market-cap weighted, float-adjusted index which tracks the performance of the 50 most prominent energy Master Limited Partnerships (MLPs). One cannot invest in an index.

General Market Risk:  Investing in securities is subject to risk, including the possible loss of principal invested.  In general, a security’s value is affected by activities specific to the company as well as general market, economic and political conditions.

Risks of investing in MLPs:  Investments in MLPs involve risks that differ from a similar investment in equity securities, including but not limited to cash flow risk, tax risk, and risks associated with limited voting rights including a potential conflict of interest between unit holders and an MLP’s general partner.  A substantial portion of MLPs are primarily engaged in the energy sector.  As a result any negative development affecting that sector, such as regulatory, environmental, commodity pricing or extreme weather risk, may have a greater impact on certain MLPs than other securities not related to the energy sector.  MLPs are subject to regulatory and tax risks, including but not limited to changes in current tax law which could result in MLPs being treated as corporations for U.S. federal income tax purposes or the elimination or reduction of MLPs' tax deductions. 

Why REITs?

Low correlation to other asset classes: Historically REITs have had low correlation with stocks and bonds, which may lower portfolio standard deviation.

Potential to act as an inflation hedge: Inflation increases replacement costs (e.g. land, materials, labor), which may increase rental revenue

Tax Efficiency: REITs, generally, do not pay income tax, so there is no double taxation on dividends (i.e. for a traditional stock, the company pays income tax before the dividend, and then the investor has to pay tax on the dividend).

Cash flows: The contractual nature of lease income, transparency, and disclosures make for earnings estimates; rarely does one tenant account for more than 1% of the rental revenues in a portfolio.

Potential avenues for growth: REIT portfolios consist of income-producing properties which can grow via occupancy and rental increases, re-tenanting, and redevelopment/expansion.

Diversification: REITs have 14 different property type sectors spread across the country.

Areas of Opportunity

  • Historically low new supply of competing properties has made for an elongated cycle favoring landlords and their ability to increase rents.
  • External growth opportunities include development and acquisitions.

General Market Risk:  Investing in securities is subject to risk, including the possible loss of principal invested.  In general, a security’s value is affected by activities specific to the company as well as general market, economic and political conditions.

Risks of investing in REITs:  In addition to the risks associated with securities of companies participating in the real estate industry, such as declines in the value of real estate, risks related to general and local economic conditions, decreases in property revenues, and increases in prevailing interest rates, property taxes and operating expenses, REITs are subject to certain other risks related to their structure and focus. REITs are dependent upon management skills and generally may not be diversified. REITs are also subject to heavy cash flow dependency, defaults by borrowers and self-liquidation. A REIT could possibly fail to qualify for favorable U.S. federal income tax treatment and so become subject to additional income tax liability that could cause to liquidate investments, borrow funds under adverse conditions or fail, or to maintain its exemption from registration under the Investment Company Act of 1940 (“1940 Act”). Various factors including the above may also adversely affect a borrower’s or a lessee’s ability to meet its obligations to the REIT. In addition, the REIT may experience delays in enforcing its rights as a lessor and may incur substantial costs associated with protecting its investments.

Why Spin-offs?

For a variety of reasons, initial regular-way trading in spin-offs is subject to selling pressure, which may provide a more attractive point of entry.

Initial selling pressure can be a factor of parent and spin company characteristics, including relative size and differences in industry between spin-off company and parent.

Distribution of returns varies widely, so avoidance of bankruptcy situations and other large decliners should be a key investor focus.

Stock selection is important: increased returns may be possible through transaction selection and strategic investment entry points.