An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes.
Global Stocks: The MSCI World Index – Net, a free-ﬂoat-adjusted index that measures performance of large- and mid-capitalization companies representing developed market countries and is net of dividend withholding taxes.
High Yield Bonds: The ICE BofAML U.S. High-Yield Index, tracks the performance of U.S. dollar-denominated below-investment-grade corporate debt publicly issued in the U.S. domestic market.
Midstream Energy: Alerian Midstream Energy Select Index, a capped, ﬂoat-adjusted, capitalization-weighted index, whose constituents earn the majority of their cash ﬂow from midstream activities involving energy commodities.
REITs: The Nareit Equity REIT Index contains all tax-qualified REITs except timber and infrastructure REITs with more than 50% of total assets in qualifying real estate assets other than mortgages secured by real property that also meet minimum size and liquidity criteria.
U.S. Stocks: The S&P 500 Index, an unmanaged index of 500 large-capitalization stocks that is frequently used as a general measure of U.S. stock market performance.
Utilities: The S&P 1500 Utilities Index, an unmanaged market-capitalization-weighted index of 60 companies for which the primary business involves the generation, transmission and/or distribution of electricity and/or natural gas.
Data quoted represents past performance, which is no guarantee of future results. The views and opinions in the preceding commentary are as of the date of publication and are subject to change without notice. There is no guarantee that investors will experience the type of performance reﬂected in this commentary. There is no guarantee that any historical trend illustrated in this commentary will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that a market forecast made in this commentary will be realized. The mention of specific securities is not a recommendation or solicitation for any person to buy, sell or hold any particular security and should not be relied upon as investment advice.
This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice, is not intended to predict or depict performance of any investment and does not constitute a recommendation or an oﬀer for a particular security. We consider the information in this material to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of suitability for investment. The information contained herein is not deemed to be, and should not be relied on, as tax advice. Please consult with your investment, tax or legal adviser regarding your individual circumstance before investing.
Risks of Investing in MLP Securities
An investment in MLPs involves risks that diﬀer from a similar investment in equity securities, such as common stock, of a corporation. Holders of equity securities issued by MLPs have the rights typically aﬀorded to limited partners in a limited partnership. As compared to common shareholders of a corporation, holders of such equity securities have more limited control and limited rights to vote on matters aﬀecting the partnership. There are certain tax risks associated with an investment in equity MLP units. Additionally, conﬂicts of interest may exist among common unit holders, subordinated unit holders and the general partner or managing member of an MLP; for example, a conﬂict may arise as a result of incentive distribution payments. MLPs are subject to significant regulation and may be adversely aﬀected by changes in the regulatory environment, including the risk that an MLP could lose its tax status as a partnership. MLPs may trade less frequently than larger companies due to their smaller capitalizations, which may result in erratic price movement or difficulty in buying or selling. MLPs may have additional expenses, as some MLPs pay incentive distribution fees to their general partners. The value of MLPs depends largely on the MLPs being treated as partnerships for
U.S. federal income tax purposes. If MLPs were subject to U.S. federal income taxation, distributions generally would be taxed as dividend income. As a result, after-tax returns could be reduced, which could cause a decline in the value of MLPs. If MLPs are unable to maintain partnership status because of tax law changes, the MLPs would be taxed as corporations and there could be a decrease in the value of the MLP securities.
Cohen & Steers Capital Management, Inc., (Cohen & Steers) is a registered investment advisory firm that provides investment management services to corporate retirement, public and union retirement plans, endowments, foundations and mutual funds.
Cohen & Steers UK Limited is authorized and regulated by the Financial Conduct Authority (FRN 458459).
Cohen & Steers Japan, LLC is a registered financial instruments operator (investment advisory and agency business with the Financial Services Agency of Japan and the Kanto Local Finance Bureau No. 2857) and is a member of the Japan Investment Advisers Association.
Notes for Readers in the Middle East: This document is for information purposes only. It does not constitute or form part of any marketing initiative, any oﬀer to issue or sell, or any solicitation of any oﬀer to subscribe or purchase, any products, strategies or other services nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract resulting therefrom. In the event that the recipient of this document wishes to receive further information with regard to any products, strategies other services, it shall specifically request the same in writing from us.