WHY COHEN & STEERS

Experienced global investment team

Experienced and dedicated global investment team with over 50 years of midstream energy & MLP investing experience

Unique and rigorous investment process

Utilizes proprietary resources and focuses on top-down energy cycle dynamics as well as comprehensive bottom-up security analysis and research

Strong market position

Our strong market position allows us to be nimble and to quickly identify alpha-generating opportunities in a broad universe

WHY MIDSTREAM ENERGY & MLPS

Inflation mitigation

In high inflation environments, businesses with pricing power, high margins and fixed rate debt should outperform. Midstream energy companies typically offer all three

Attractive current income

Midstream energy and MLPs provide the potential for attractive current income, with possible tax advantages

Lower volatility energy exposure

Historically superior risk adjusted returns for investors looking for energy exposure with less volatility

The Cohen & Steers Midstream Energy & MLP Strategy invests in a diversified portfolio of master limited partnerships (MLPs) and midstream energy corporations with the potential to deliver total return consisting of both capital appreciation and tax-advantaged income.

We believe that the superior income and growth opportunity within the midstream energy universe is currently underappreciated by investors and—combined with attractive fundamentals—makes midstream a compelling investment opportunity. In addition, we believe optimal total return can be achieved through fundamental analysis focused on identifying midstream companies with the highest potential for distribution growth.

We believe midstream energy businesses are generally tied to tangible assets with cash flows that originate from volume-based usage fees and revenue that is often indexed for inflation. In our view, MLPs offer the potential for tax-advantaged income greater than that of other income-oriented securities such as utilities and bonds.

FEATURED INSIGHT

Essential assets: The case for listed infrastructure

Investors’ search for diversification and inflation protection has put a spotlight on infrastructure, made brighter by massive public investment programs and the accelerating transition to a digitized, decarbonized economy.

September 2023 | 27 mins

WHY INVEST WITH US

Delivering value to our clients

Cohen & Steers has invested in midstream energy companies and MLPs since 2004. Our dedicated Midstream Energy investment team leverages Cohen & Steers’ entire Global Real Assets platform of investment professionals, including daily collaboration with the firm’s global listed infrastructure, “best of energy” specialists and real asset investment teams. With deep experience in midstream energy investing, our team brings over 40 years of combined experience and provides meaningful insights into local companies through on-the-ground research, consisting of traveling to visit assets and companies, attending relevant conferences and maintaining a direct line of communication with management teams.

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PORTFOLIO MANAGEMENT

An experienced team

Benjamin Morton

Head of Global Infrastructure

26 years of experience

Tyler Rosenlicht

Portfolio Manager, Global Infrastructure

15 years of experience

+3 analysts and associates

We believe an active, disciplined relative value approach to managing midstream energy and MLP assets, grounded in rigorous bottom-up fundamental research and incorporating top-down energy cycle dynamics, has the potential to generate alpha while providing portfolio diversification.

We believe the midstream energy and MLP markets are inherently inefficient, creating opportunities to add value through active management.

Cohen & Steers has a dedicated real assets platform with experienced teams that touch all aspects of the energy value chain.

We leverage the firm’s energy-focused investment talent.

An internal cross-strategy working group includes members of the global listed infrastructure, midstream, commodities, macro, real assets and natural resource equities teams.

APPROACH

Our investment process

We adhere to a disciplined, fundamental, relative value-based approach to investing in midstream energy and MLPs. Our approach to investing employs a robust investment philosophy and a repeatable process.

Macro outlook
The team evaluates and analyzes global energy supply and demand trends, reviews short- and long-term price targets and identifies pertinent catalysts and risks to our thesis. We identify key themes or drivers specific to North American midstream businesses to establish subsector views and positioning.

Fundamental research
Our analysts are focused on bottom-up financial and security-level analyses. We maintain ongoing dialogue with senior management, perform regular asset tours with operational employees and focus on corporate governance and the alignment of interests for all companies in our universe.

investor relations

Valuation models
We use proprietary financial models that project key financial criteria to evaluate every company on two core valuation methodologies: three-stage discounted distribution model (DDM) and net asset value (NAV).

Real Assets

Risk management
A dedicated risk management team provides stress testing and other proprietary risk tools that are integrated into the investment process.

Capital Market Assumptions

Capital Market Assumptions: Expectations for the next 10 years amid a generational change for markets

June 2024 | 22 mins

We expect higher fixed income and real asset returns alongside lower U.S. equity returns for the next decade.

3 Reasons to own listed infrastructure

3 Reasons to own global listed infrastructure today

April 2024 | 6 mins

Attractive valuations, an advantageous macro environment and high private investor interest set the stage for potentially strong total returns from listed infrastructure.

Investing in the future of energy

Investing in the future of energy

April 2024 | 3 mins

Global energy demand is poised for substantial growth in the coming decades, which is creating attractive investment opportunities across the alternative energy landscape and the traditional energy value chain.

Why the consensus approach to energy investing is flawed

Why the consensus approach to energy investing is flawed

April 2024 | 10 mins

Investors have increasingly viewed energy through an either/or lens, taking a zero-sum view, and limiting their investments to traditional or alternative energy forms. This is a flawed approach.

Changing the narrative from ‘energy transition’ to ‘energy addition’

Changing the narrative from ‘energy transition’ to ‘energy addition’

April 2024 | 29 mins

Aggregate energy demand will continue to increase in the coming decades, which is creating attractive investment opportunities across both the traditional and alternative energy landscape.

InvestmentNews: Cohen & Steers strategist sheds new light on investing in energy sector

InvestmentNews: Cohen & Steers strategist sheds new light on investing in energy sector

March 2024 | 1 min

Portfolio Manager Tyler Rosenlicht joined InvestmentNews’ IN the Nasdaq to discuss his outlook for the future of energy and why he believes existing investment strategies provide a limited view of the asset class. He discusses why global energy demand is driving the need for energy addition, requiring both traditional and alternative energy to satisfy this demand.

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