Why MLPs?

Historical Investment Characteristics of the Alerian MLP Index

    Current Income – 8.8% distribution yield(1)

    Total Return(2) Potential – 6.4% annualized return from 6/1/06 through 03/31/18(3)

    Attractive Risk-Adjusted Returns – Sharpe Ratio(2) of 0.24 (1)

    Tax Efficiency – MLP distributions are largely a return of capital and thus tax deferred

    Distribution growth of the Alerian MLP Index has averaged approximately 5.1% per annum which has outpaced inflation, as represented by the CPI, over the time period 6/1/06 through 12/31/17

    Low Correlation(2)
    0.53 to the S&P 500 TR
    0.32 to REITs

    -0.05 to the Barclays Aggregate Bond Index


    Daily Liquidity

(1) MLPs are represented by the Alerian MLP Index. Data is as of 03/31/2018.
(2) Please see the definitions found in the Glossary toward the end of this presentation.

(3)The launch date of the Alerian MLP Index was 6/1/06.  We believe data from 6/1/06 through the present represents multiple market cycles. Source: Alerian and Bloomberg.