The Strategy provides access to master limited partnerships (MLPs) and other midstream energy companies with the potential to deliver total return composed of both price appreciation and income.
- Invests in MLPs and related midstream energy companies with generally stable, fee-based cash flows
- Long term total return comprised of income and price appreciation
- Diversified by midstream energy subsector
The asset class
The Strategy invests in MLPs and other companies in the midstream portion of the energy value chain, offering participation in investment opportunities created by the North American energy renaissance. MLPs can enhance the distribution of income through their tax-efficient pass-through structures and predictable fee-based cash flows. We see attractive long-term value in this market, given the production growth of crude oil, natural gas and natural gas liquids in North America.
Our investment process
We believe that success in MLP investing requires a relative value approach where bottom-up security analysis is expressed through a well-constructed diversified portfolio. Macro views of underlying commodity supply/demand, mergers and acquisitions activity, regulatory trends, and secular changes in consumption and production are used to assess sector exposure. The portfolio managers then determine appropriate security allocations based on the output of our analysts’ fundamental company-level research and valuation models, while taking into account risk controls, diversification and liquidity.
Why invest with us?
Cohen & Steers has invested in MLPs and other related midstream energy companies since 2004 and has become one of the world’s largest investors in global listed infrastructure. The Strategy leverages the firm’s global trading capabilities and is managed by a dedicated investment team, with senior investment professionals in New York, London and Hong Kong. With deep experience in midstream energy investing, our team brings over 40 years of combined experience and provides unique insights into local companies through on-the-ground research.
|Robert Becker||Senior Vice President, Portfolio Manager||New York||Bio|
|Benjamin Morton||Senior Vice President, Portfolio Manager||New York||Bio|
|Tyler Rosenlicht||Vice President, Portfolio Manager||New York||Bio|
|Thuy Quynh Dang||Research Analyst||London|
|Grace Ding||Research Analyst||Hong Kong|
|Humberto Medina, CFA||Research Analyst||New York|
|Saagar Parikh, CFA||Research Associate||New York|
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The views and opinions in the preceding commentary are subject to change and represents an assessment of the market environment at a specific point in time, should not be relied upon as legal, investment or tax advice and is not intended to predict or depict performance of any investment. We consider the information 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. Investors should consult their own advisors with respect to their individual circumstances. There is no guarantee that any historical trend illustrated above 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.
Please consider the investment objectives, risks, charges and expenses of any Cohen & Steers fund carefully before investing. A summary prospectus and prospectus containing this and other information can be viewed by clicking here or may be obtained by calling 800-330-7348. Please read the prospectus carefully 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.
The portfolio will be subject to more risks related to the energy sector than if the portfolio were more broadly diversified over numerous sectors of the economy. A downturn in the energy sector of the economy could have a larger impact on the portfolio than on an investment company that does not concentrate in the sector. In addition, there are several specific risks associated with investments in the energy sector, including the following: Commodity Price Risk, Depletion Risk, Supply and Demand Risk, Regulatory Risk, Acquisition Risk, Weather Risks, Exploration Risk, Catastrophic Event Risk, Interest Rate Transaction Risk, Affiliated Party Risk and Limited Partner Risk and Risks of Subordinated MLP Units. MLPs which invest in the energy industry are highly volatile due to significant fluctuation in the prices of energy commodities as well as political and regulatory developments.
Cohen & Steers open-end funds are distributed by Cohen & Steers Securities, LLC.