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 MLP Strategy invests in a diversified portfolio of master limited partnerships 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.

November 2021 | 1 min

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.

PORTFOLIO MANAGEMENT

An experienced team

Benjamin Morton

Head of Global Infrastructure

25 years of experience

Tyler Rosenlicht

Head of Resource Equities

12 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.

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).

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

A portfolio managers perspective Opportunities in listed infrastructure

ESG: opportunities and challenges within real estate

November 2022 | 6 mins

Environmental, social and governance issues present demonstrable risks and opportunities for real estate. Khalid Husain, Head of ESG, and Jan Willem van Kranenburg, Senior Analyst, discuss how our integrated ESG approach at Cohen & Steers assesses and values these topics as part of our investment approach among different real estate sectors and companies.

Closed-end fund commentary 3Q 2022

October 2022 | 3 mins

Closed-end funds finished the quarter down following persistent inflation and continued talk of monetary policy tightening.

Institutional Investor: The Best Real Estate Returns Come After Recessions

October 2022 | 1 min

Head of Private Real Estate James Corl spoke with Institutional Investor for a feature story on our recent whitepaper and why an optimized real estate portfolio may require access to both listed and private markets.

With Intelligence: Cohen & Steers’ new private RE group eyes discounted retail, office

October 2022 | 1 min

Head of Private Real Estate James Corl spoke to With Intelligence about the Private Real Estate Group’s current market outlook and the opportunities that the team is looking at, including retail, surban office and housing.

Recession and the roadmap for listed and private real estate

September 2022 | 17 mins

We see an economic backdrop that will create an opportunity for strong vintage returns for both listed and private real estate. Both cyclical and secular shifts are likely to create investment opportunities, and we think allocating across both private and listed real estate will be critical.

3 reasons to consider preferreds when rates are rising

September 2022 | 10 mins

Preferred securities have characteristics that can potentially help mitigate the effects of rising interest rates.

Need to contact us?

We’d be happy to answer questions about our investment solutions or any corporate-related inquiries.