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Who Should Invest

Investing in MLPs may generate tax-deferred income and overall return.  MLP investments are beneficial for:

  • High net worth individuals – seeking high after-tax income, with the potential for income growth.  In addition to income generation, the portfolio has the potential for capital appreciation.
  • Institutional investors – seeking high-income paying strategies in addition to traditional equity strategies and as a supplement to low paying fixed income strategies.
  • Investment advisors – desiring an allocation to MLPs for their clients.  A sub-advisory relationship is beneficial to the IA and allows the underlying client to enjoy the benefits of MLPs.
  • Investors looking for estate planning alternatives with a focus on tax efficient wealth transfer.  The basis in MLPs is stepped up to fair market value at death leaving the heirs with a fresh start and no taxation of previous distributions.
  • Pension plans, foundations and endowments – MLP portfolios have the potential to generate a level of income that can help meet stated spending policies.
  • Investors who want exposure to a growing sub-sector of the natural resource universe which benefits from a tax-advantaged structure and which owns and operates integral infrastructure energy assets that are essential in meeting the growing demand from energy producers and consumers.