Investment Security Group
February 2014
Volume V, Number I
Shifting to a more Tax-Efficient MLP Strategy
We are selling our position in Oppenheimer SteelPath MLP Select 40(MLPFX) in favor of a more tax-efficient
strategy offered by a newer entrant called Eagle MLP Strategy(EGLIX). EGLIX was not available when we
initially entered this space back in 2010. Both of these programs seek income-producing master limited
partnerships (“MLP’s) which focus mostly on energy infrastructure projects like pipelines and storage
facilities. The Eagle strategy, however, limits its direct exposure to MLP’s in order to legally avoid an
additional layer of taxation for the investor at the fund level which most of the MLP-focused mutual funds
like SteelPath must contend with.
Importantly, while limiting its direct exposure to MLP’s, the fund will continue to focus on energy
infrastructure assets with “toll road” or utility-like business models with little or no commodity price
exposure. Eagle Global Advisors, LLC manages over $2.1 billion in MLP and MLP-like strategies with a
dedicated investment team located in Houston, Texas, the knowledge center for energy and MLP’s.
Please contact your ISG advisor should you have any additional questions.
Sincerely,
The ISG Investment Team
Investment Security Group – 4601 DTC Blvd., Suite 600, Denver, CO 80237 - (303)759-9808